Background
 
  Energy Efficiency
 
  Pollution Control
  System
Present Environmental Standards
Legal Provisions
Common Pollution Control System
  Financing Schemes
   
     
 
 
 
     
 
     
     
 
Small Industries Development Bank of India

Set up in April 1990, Small Industries Development Bank of India (SIDBI), is the principal financial institution for promotion, financing and development of small scale industries and to coordinate the functions of Institutions serving the small industries. SIDBI provides assistance to the sector through 910 PLIs for indirect assistance and through 43 branches for direct assistance. SIDBI is the nodal agency for various Government schemes.
 
SIDBI offers the following schemes:
1. Refinancing and Line of Credit This is mainly through indirect channels such as the Primary Lending Institutions. The Refinancing Scheme covers:
 
   
2. Bill Financing
The finance is channelised through Banks for indirect finance and SIDBI’s own branches for direct finance. There are four schemes:
 
   
3. Resource Support
Assistance is provided by way of short-term loan and line of credit to intermediaries including Non-Banking Financial Companies for Leasing and Hire Purchase.
   
4. Project-Related Finance
The project-related finance is provided directly through SIDBI’s own branches. Under this category there are:
 
   
5. Promotional and Development Assistance
SIDBI looks forward to financing directly, and to working in partnership with, NGOs, associate financial institutions, corporate bodies, R&D laboratories, marketing agencies, etc., for national level programmes. The programmes under this category relate to:
 
   
  A new financing scheme for financing cleaner technologies has also been launched recently by SIDBI. The highlights of the scheme are provided in box 1.
   
 
Box 1
SIDBI - KfW Scheme
for Cleaner Production Measures for SSI/CETPs
   
Objective
The scheme has been designed in collaboration with Kreditanstalt fur Wiederaufbau (KfW), Germany, in order to encourage economically and financially sustainable industrial units in select industrial sectors in the SSI sector (including those graduating out of SSI) and Common Effluent Treatment Plants (CETPs) to adopt cleaner production measures, so as to reduce the severe pollution loads and the resultant human health risks, as well as to improve the profitability of the beneficiary units in the long run
Eligible projects on a regular basis
Financing of cleaner production measures in existing SSI-units in
  • leather tanning & finishing,
  • textile wet processing,
  • metal finishing, electroplating,
  • foundries
  • for phasing out ozone depleting substances
  • The proposed measures shall aim at productivity increases, reduced costs and improved quality and revenues of the product.
  • The proposed projects shall be economically and financially sustainable under ongoing economic reforms and reduced import restrictions. Local emission standards, discharge standards of existing common effluent treatment plants and legal safety standards for working places shall be met. Working capital needs should be properly tied up.
  • Existing units shall have satisfactory track record of past performance & sound financial position and should not be in default to institutions/banks.
  • Units graduating out of SSI sector are also eligible.
  • The proposed project to be financed under the Scheme shall be positively vetted by the SIDBI appointed consultant.