Ecosystem

With a focus to creating value and building a supportive financial infrastructure for the growth and development of the MSME sector in the country, SIDBI has adopted a SIDBI PLUS Approach and propagated institutions building by way of formation of a network of strong associates and subsidiaries that have become instrumental in realising the inclusive growth targets.

These subsidiaries are thoughtfully diversified to reach out to and address both conventional and unconventional needs of MSMEs and start-ups at different growth curves. While some of these are independent SIDBI initiatives, there are others that have been formed through alliances with several state and international entities, all driven by a single point focus to create value, accelerate growth and generate maximum financial, social and environmental benefits to all stakeholders involved.

Ecosystem

Mudra

MICRO UNITS DEVELOPMENT & REFINANCE AGENCY LTD. (MUDRA)

Micro Units Development & Refinance Agency Ltd. (MUDRA) was set up on April 08, 2015 as a wholly owned subsidiary of SIDBI for “funding the unfunded” micro enterprises in the country. MUDRA has been supporting Banks, Micro-finance Institutions (MFIs), NBFCs and other lending institutions through refinance assistance for lending to micro/ small business entities engaged in manufacturing, trading, service sector activities, activities allied to agriculture and other eligible income- generating activities.

MUDRA also manages the PMMY portal where the lending institutions upload their operational data relating to implementation of the Pradhan Mantri Mudra Yojana (PMMY). The progress of implementation of PMMY is reviewed periodically by MUDRA Ltd. and Department of Financial Services, Ministry of Finance, Govt. of India at all India level and State Level Bankers Committees at the state level.

MUDRA, currently with an authorised capital of ` 5,000 crore and a paid up capital of ` 1,675.93 crore, works closely with Banks, MFIs and other lending institutions at the state/ regional level to provide micro finance support to the growing micro enterprise sector in the country.

MUDRA Impact:

  • MUDRA’s refinance support has facilitated availability of cheaper funds to lending institutions for expanding their lending up to INR 10 lakh for income generating activities eligible under PMMY. This has further helped in reducing cost to the ultimate beneficiaries.

  • Close monitoring of lending at the ground level through PMMY has resulted in cumulative lending of `18.91 lakh crore to 34.93 crore borrower-accounts (as on 31.03.2022). Out of these, 68% borrowers were women, 21% were new loan accounts and 51% were SC/ST/OBC category.

  • MUDRA has disbursed refinance of INR 53,051 crore till March 31, 2022 to various MFIs, NBFCs, Scheduled Commercial Banks including Regional Rural Banks and Small Finance Banks.

For more details kindly visit http://www.mudra.org.in/

SVCL

SIDBI VENTURE CAPITAL LIMITED (SVCL)

SIDBI Venture Capital Limited (SVCL), a wholly owned subsidiary of SIDBI, was set up in July 1999 as an Investment Management Company for managing Venture Capital Funds (VCFs). Since inception, SVCL has continued to provide growth capital to deserving MSMEs across diversified sectors The funds managed by SVCL have been instrumental in generating a valuable growth momentum among key sectors of the economy.

Impact of SVCL:

  • SVCL managed funds have assisted MSMEs in various sectors like manufacturing, technology, services, etc.

  • SVCL has led the path by being the first investor in most of its investee companies or a sector, making way for other funds to follow and assist development of a successful investee. Marquee Investors/ Funds have invested in SVCL investee companies in subsequent rounds.

  • Most of SVCL funds have significant focus on manufacturing businesses which are generally starved for equity capital.

  • Several companies in which SVCL’s Funds have been invested have grown to respectable sizes.

  • Samridhi fund was the first social impact fund under the new AIF guidelines. It has assisted companies in diverse sectors like financial inclusion, healthcare, drinking water, organic food, agri processing and clean energy etc.

  • Through Samridhi Fund, SVCL has invested in 5 MFIs. Two of them have transformed into Small Finance Banks (SFB). The MFIs and the SFBs have helped financial inclusion, especially of rural poor women in multiple geographical locations.

  • With a track record of over 130 investments and over 85 exits so far, SVCL has made remarkable contributions towards the growth of traditional sectors like manufacturing and textiles while also pioneering the wave of new technology enabled start-ups, social enterprises, women entrepreneurs and innovative products and services enterprises across healthcare, logistics, education, water etc.

For more details kindly visit http://www.sidbiventure.co.in

CGTMSE

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

set up in 2000, operates the Credit Guarantee Scheme (CGS) for MSEs in respect of credit facilities up to `2 crore extended by Member Lending Institutions, which are not backed / partially backed by collateral security and / or third-party guarantees.

The guarantee scheme has cumulatively helped in creating 58.59 lakh MSE loan accounts for loan amount of `3.14 lakh crore till March 31, 2022. During FY 2022, the amount of Guarantees approved was to the tune of `56,172 crore recording a significant growth of 52%. The units supported by CGTMSE have generated employment to the tune of 155 lakh. Approximately 14% entrepreneurs benefited by the scheme were women. Units supported by CGTMSE have contributed ₹ 24,033 crore towards exports.

Apart from overwhelming growth in last FY, we rose to the occasion and managed 2 special schemes i.e. PMSVANidhi and CGSSD to meet COVID Challenges. Both the CGSSD and PM SVANidhi schemes are poised to bring back life to two of the most crucial segments of entrepreneurial ventures.

CGTMSE has leveraged technology to improve operational efficiencies and introduced major policy changes in the credit guarantee products such as Wholesale trade and Educational Institutions were included as eligible activities for guarantee coverage, increase in the extent of guarantee coverage to 75% for loans above ` 50 lakh, charging guarantee fee on outstanding amount instead of sanction amount, inclusion of retail trade as eligible activity, allowing partial collateral security, inclusion of NBFCs including Fin-Tech NBFCs, SFBs and Scheduled Urban Co-operative Banks as eligible MLI of CGTMSE.

Important developments during FY 2022:

  1. For ease of operation, Bulk upload facility for coverage under CGTMSE introduced upto `1 crore
  2. Loans to educational institutions and Wholesale Traders brought under the ambit of eligible activities.
  3. Introducing new Schemes like Guarantee for Co-Lending by Banks and NBFCs, Collaboration with State Government for state specific guarantees etc.
  4. Lodgement of guarantee application allowed anytime during the tenure of the loan.
  5. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), has framed a Scheme for the purpose of providing guarantees in respect of credit facilities extended by eligible Banks & NBFCs jointly to Micro and Small Enterprises (MSEs) borrowers under Co-Lending models as prescribed by RBI from time to time. The same shall cover eligible credits sanctioned under Co-Lending arrangement by pair of lending institutions to eligible borrowers under MSE sector.

Credit Guarantee Fund Trust for MSEs (CGTMSE)

  • Credit Guarantee Scheme for MSEs in respect of credit facilities up to ₹ 2 crore
  • Achievements during FY 2022:
  • Guarantees approved stood at ₹ 56,172 Crore
  • Number of guarantees approved– 7,17,020
  • CGTMSE has approved 58.59 lakh guarantees covering loans amounting to over ₹3.14 lakh crore and settled 3.58 lakh claims amounting ₹8,414.8 crore on a cumulative basis
  • Units supported by CGTMSE have generated employment to the tune of 155 lakh.
  • Units supported by CGTMSE have contributed ₹ 24,033 crore towards exports.

RXIL

RECEIVABLES EXCHANGE OF INDIA LTD. (RXIL)

Small Industries Development Bank of India (SIDBI), and National Stock Exchange of India Ltd. (NSE), along with State Bank of India, ICICI Bank and Yes Bank launched India’s first TReDS platform under Receivables Exchange of India Limited (RXIL) on February 25,2016.

Trade Receivables Discounting System (TReDS) is an online platform for financing of receivables of Micro, Small & Medium Enterprises through a transparent auction-based mechanism.

IMPACT OF RXIL:

  • RXIL offers a win-win proposition to all stakeholders– MSMEs, corporate buyers (including PSUs and Government departments) and financiers. Providing complete digital support with paperless transactions, RXIL TReDS platform offers a transparent bill discounting system for prompt and timely payments for MSMEs receivables.
  • Deepening of digital payments and improvement of MSME sector by enabling easier market access and timely receipt of receivables inter-alia has occupied the prime focus of the Government. TReDS has been one of the steps taken for benefitting the MSMEs realize their receivables in a time-bound manner at a relatively lower financing cost.
  • Since its inception, RXIL TReDS has onboarded close to 8,500+ MSMEs and helped them obtain timely payments against their duesworth`14,000 crores (as on July 31, 2021). Moreover, being a completely digital platform, RXILs operations continue without any disruption. This timely and low-cost finance has helped MSMEs bring down their finance costs by about 50%. These savings have been invested in business expansion and increasing the turnover.
  • It is RXIL’s vision to extend the TReDS benefit and to support the growth and development of 50,000 and more MSMEs across India by FY 2023.
  • RXIL is committed to contribute to the Government of India’s vision of creating a vibrant MSME ecosystem in the country and actualise the vision of AtmaNirbhar Bharat (Self Reliant India)

For more details visit https://www.rxil.in/

ACUITE

ACUITÉ RATINGS & RESEARCH LIMITED

Acuité Ratings & Research Limited (www.acuite.in)is a technology-enabled, full-service credit rating agency registered with the Securities and Exchange Board of India (SEBI) and accredited by Reserve Bank of India (RBI). The Company received RBI Accreditation as an External Credit Assessment Institution (ECAI), for Bank Loan Ratings under BASEL-II norms in the year 2012. Since then, it has assigned more than 9100+ credit ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide section of industries. Acuité rates bonds, debentures, commercial paper, fixed deposits and various fund-based and non-fund-based bank facilities. Apart from credit ratings, Acuité’s expertise includes economic research, industry research, financial modelling, rating modelling, and development of software applications. 

SMERA Ratings Private Limited is a wholly owned subsidiary of Acuité Ratings & Research Ltd. SMERA (www.smeraonline.com) is world's first SME-focused rating agency providing credit ratings of Indian micro and small enterprises. SMERA's services are aimed at empowering the SME ecosystem by promoting transparency, building trust and facilitating lending decisions. SMERA, which morphed from an initiative of the Ministry of Finance and RBI back in 2005, has built an enviable record of conducting more than 50,000 ratings till date.

International Finance Corporation (IFC) recognized SMERA as a novel and sustainable initiative of the Government of India, to improve the credit flow to the MSME sector. In 2007, the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) awarded SIDBI with "Outstanding Development Project Award" under the SME Development Category, for setting up SMERA. This award was a recognition of the Indian initiative to enhance credit flow to credit-constrained SME sector for developing its SME sector. SMERA was also a recipient of the Technical Assistance Grant by DFID, UK under World Bank’s ‘Project on SME Financing & Development’.

ESG Risk Assessments & Insights Ltd. (ESGRisk.ai), another wholly owned subsidiary of Acuité Ratings & Research Ltd., is India’s first ESG Rating company and a pioneer in bringing ESG assessments to investors and corporates. Currently, ESG assessment reports and ratings of over 600 listed Indian companies can be accessed via “ESG 360 Degree” subscription platform of ESGrisk.ai. ESGRisk.ai’s ratings are an objective, independent and unbiased opinion on a company’s ability to mitigate emerging risks associated with Environment, Social, and Governance issues that have a material financial impact. ESG ratings foster informed decision-making while choosing ESG investments, assessing a particular company's or industry's performance, reviewing ESG business strategies and identifying the need for policy interventions.

Apart from ESG ratings of listed companies, ESGRisk.ai also provides ESG assessments of unlisted companies and ESG Gap Analysis and aims to launch its proprietary methodology of ESG indices.  ESGRisk.ai has also launched India's first ESG Leadership Awards based on a very detailed methodology. 

ISARC

India SME Asset Reconstruction Company ltd (ISARC) was incorporated on 11th April 2008 by SIDBI,as the country’s first Asset Reconstruction Company for MSME NPAs, supported by large number of Public Sector Banks and undertakings. It commenced business operations on 15th April 2009, with the principal objective to acquire non-performing assets (NPAs), primarily from MSMEs, and accelerate the restructuring of potentially viable units and liquidation of unviable units, so that productive use of the assets is maximized.

As of March 31, 2021, ISARC had net Assets Under Management (AUM) of `398.76 crore.

For more information, visit http://www.isarc.in

ISTSL

India SME Technology Services Limited (ISTSL) was set up in November 2005 by SIDBI along with Indian Bank, Oriental Bank of Commerce, Indian Overseas Bank and State Bank of India with the primary objective to strengthen and accelerate the process of technological modernization in the MSME sector.

Through key partnerships with national and international organisations engaged in similar activities, ISTSL offers expert technology advisory and consultancy services to MSMEs so as to enable them to make the best of the latest technological developments and remain relevant in the fast changing market place. It also plays a crucial role in providing a platform for MSMEs to tap opportunities at the domestic and global level for acquisition of modern technologies.

Key technical development services offered by ISTSL include sharing of information on technology options, match-making, finance syndication and business collaborations, organising seminars/meets and providing market support. Another key contribution of ISTSL is its strong focus on promotion of energy efficient, and environment friendly technologies in the MSME sector, with considerable efforts being made to facilitate reduction in Green House Gases in the MSME sector.

ISTSL is also providing project management consultancy services for implementation of renewable energy (especially solar rooftop PV system projects).

ISTSL is one among the very few agencies selected for conduction of Zero Defect – Zero Effect (ZED) Scheme Awareness Workshops among MSMEs. ISTSL is also empanelled as a technical inspection agency with “The National Small Industries Corporation Limited” under single point registration scheme.

For more information, visit https://www.istsl.in