SIDBI will provide project-specific loans to the Assam government for upgrading micro, small and medium enterprise (MSME) clusters in the state, according to a statement.

Project-specific moderately priced loan assistance under the SIDBI Cluster Development Fund (SCDF) shall be extended by SIDBI to the state government for upgrading various existing MSME clusters and for developing new industrial infrastructural facilities in Assam, SIDBI said in a statement on Wednesday.

The Small Industries Development Bank of India (SIDBI) participated in an event in Guwahati, chaired by Chief Minister Himanta Biswa Sarma.

The state presented its expectations on startups, cluster development, and livelihood and enterprise promotion, SIDBI said.

Sarma called upon state-level institutions and line departments to enhance co-operation with institutions like SIDBI.

He urged that the cluster programme should twin with the 'One District-One Product' model, so that niche areas of the state can be brought up in the value chain, thus helping those at the bottom of the pyramid, said the statement.

The chief minister also asked SIDBI to extend its expertise to manage startup funds along with active state-level institutions, as well as help Assam formulate a suitable guarantee fund leveraging Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

SIDBI Chairman and Managing Director Sivasubramanian Ramann said the bank looks forward to deepening its footprint in Assam by contributing to livelihood and micro-enterprise value chain as also innovation and start-up ecosystem.

Ramann handed over an in-principle approval commitment letter to K K Dwivedi, principal secretary (industries and commerce), Assam government.