International Indexed & Refferred Research Journal, October 2012, ISSN 0975-3486, RNI- RAJBAL 2009/30097: VoL IV *ISSUE- 37

Research PaperCommerce

Sidbis Promotional and Developmental Activities in Northeastern Region (NER)

October,2012

* Dr. Kh. Dhiren meetei ** Mrs. Soma Devi oirangrhem

*Assot. Prof, Dept. of Commerce, Manipur University, Canchipur **Research scholar, Dept. of Commerce, Manipur University, Canchipur A B S T R A C T
SIDBIs endeavour towards the Promotional and Developmental (P&D) support to the MSME sector has always been an integral part of the bank activities. In order to impart competitive advantage to MSMEs, SIDBI is engage in promotional and developmental activities to achieve the twin objectives of enterprises promotion and enterprises development programmes. The paper attempts to give a comprehensive overview of all aspects related to promotional and developmental activities provided by SIDBI in NER. Keywords:- Bank; Promotion & Development; MSME

Introduction The role of Small Industries Development Bank of India(SIDBI), as the principal financial institution for the promotion, financing and development of industry in the small scale sector is mainly two fold; Financing and Developmental. In the sphere of financing, SIDBI operates a number of schemes tailored to meet the specific requirements of target groups and activities. While the financial assistance to small scale units is largely provided under refinance scheme operated through a large network of bands and State level financial institutions, SIDBI is extending direct assistance for development of other important areas like infrastructure, marketing organizations, supply of raw materials, ancillary development and technology upgradation. Healthy development of SSI sectors needs not only financial helps but also the promotional measures and support services. In the area of Promotion and Development (P&D), initiatives have been taken by SIDBI for increasing the geographical and social spread of Village and Small Industry (VSI) units on the hand and programmers for raising the inherent strength of small scale sector on the other. Methodology Secondary data are used for the study and it has been collected from the various journals, research articles, internet website and SIDBI Annual reports etc. Promotional & Developmental Activities SIDBI has put greater emphasis on the promotional and developmental (P&D) needs of the Micro Small and Medium Enterprises (MSMEs) in NER for their capacity building and holistic development. It may be noted that the Committee on Financial Sector

Plan for the North Eastern Region under Smt. Usha Thorat, Dy. Governor, RBI has made certain recommendations for SIDBI to implement its developmental programmes, viz. Cluster Development Programmes and Rural Industries Programme in all the States of North East. SIDBI has geared up to deepen its support in the recommended areas. The support of the Bank under various promotional and developmental programmes in the NER, are as under 1 Rural Industries Programme (Rip) - The Rip aims at creation of employment through enterprise promotion in rural and semi-urban areas and addressing problems such as rural unemployment, urban migration, under-utilisation of know-how and latent rural resources. Under the Banks Flagship P&D Programme, viz. RIP, 22 districts in NER have so far been covered, out of which, 12 are currently under implementation. 2 Enterpreneurship Development Programme (Edp) The Banks Enterpreneurship Development Programme aim at promotion of self employed ventures. Capable of generating employment opportunities, especially in far flung and rural areas targeting less priviledged sections of the society like women and SC/ST. The EDPs are conducted in the cluster or for a heterogeneous group of enterpreneurs. The Bank has conducted around 288 EDPs benefiting around 13141 participants till june 30, 2011. 3 Cluster Development Programme (Cdps) Cluster Development Programmes is a comprehensive package of business development services, such as technology upgradation, capacity building, environment marketing, credit quality WTO, information dissemination etc. The main objectives of CDPs are i) Creation of awareness on new product/process technologies

58

RESEARCH ANALYSIS AND EVALUATION

International Indexed & Refferred Research Journal, October 2012, ISSN 0975-3486, RNI- RAJBAL 2009/30097: VoL IV *ISSUE- 37

ii) Skill upgradation iii) Development of technology related commom facilities for the cluster iv) Provision of unit specific moderisation package v) Quality upgradation in term of system and product. The Bank has so far intervened in 38 cluster programmes benefiting around 5542 beneficiaries in the entire NER covering handloom weaving, cane and bamboo mat weaving, carpet weaving, agarbati making, mugA Silk Etc. 4 Skill-cum-technology Upgradation Programme (Stup) Skill-cum-Technology Upgradation Programme is structured to improve the performance of existing MSME unit by developing/strengthing managerial skill and technical competence of the enterpreneour and senior executives of small enterprises. STUP also aims at creating awareness amongst the SME units on process improvements, technological developments etc. and inducing the units to upgrade their technological level. The Bank has so far conducted over 133 STUPs/Skill Development Programme benefiting over around 4192 participants in the entire NER as on June 30, 2011. 5 Strengthening Sme Sector with a view to strengthening the SME sector, the Bank supports reputed management/technology institution for offering management development programmes. 6 Marketing Initiatives As an important ingredient of its P&D initiatives, the Bank supports various marketing events with the intention of providing appropriate marketing linkages to the trainees of EDPs and RIP, etc. Institution Building 1 North Eastern Development Finance Corporation Ltd. (NEDFi)-SIDBI is one of the co-promoters of NEDFi which is set up at Guwahati as the Development Finance Corporation for the North East. SIDBI has contributed a sum of Rs.10 crore towards the paid-up capital of the agency. NEDFi aims at catalysing the economic development of the region by extending assistance for the efficient formation of fixed assets through identification, financing and nurturing of eco-friendly and commercially viable industrial and infrastructure projects in the Region. 2 Indian Institution of Enterpreneurship (Iie), Guwahati-sidbi is one of the founder member of IIE set up at Guwahati. An amount of Rs.25 lakh has been

extended towards corpus fund for setting up the Institute. IIE is undertaking entrepreneurial training activities in the Region Other Iniyiatives i) Assistance was sanction to North Eastern Industrial & Technical Consultancy Organisation Ltd (NEITCO) for preparation of 100 project profile to tiny sector projects for the North Eastern Region. ii) SIDBI in association with Exim Bank, also conducted a workshop on export oriented fruit processing Industry for for enterpreneours having fruit processing units in North Eastern Region. iii) The Bank has support various vocational training and marketing/seminars/exhibitions covering over 3500 participants from MSME sector in the NER. iv) A councelling centre for Micro and Small Enterprises was set up initially for a period of one year in FY 2010 jointly by SIDBI and United Bank of India for providing counseling services to potential enterpreneous. v)Project profile have been prepared for 100 micro sector projects having potential in North Eastern Region and was released by Shri P. Chindambram, Honble Finance Minister Govt. of India in the presence of Honble Prime Minister on Oct. 04, 2008. Finding 1 The Promotional and Development (P&D) activities of the Bank are designed to achieve the twin objectives of promotion and development of MSME. 2 The P&D support to the MSME sector has always been an integral part of the Banks activities. 3 Promotional activities include enterprises promotion resulting in self employment and creation of additional employment through its select programmes, such as RIP, EDP, vocational training programmes 4 Developmental activities includes strengthening the MSME sector through select interventions such as Skill-cum-Technology Upgradation Programme (STUP), Small Industries Management Programme (SIMAP), Cluster Development Programme (CDP), Marketing Assistance etc. Conclusion In a nutshell, it can be concluded that SIDBI provides the various assistance under its promotional and developmental activities, such activities will be highly useful to MSMEs sector of NER.

R E F E R E N C E
1. The journal of Indian Institute of Banking and Finance, vol-81, Jan-March 2011, 2. SIDBI Annual Report, 3. www.sidbi.com, 4. www.iisd.org

RESEARCH ANALYSIS AND EVALUATION

59