Indore : In order to avail of easy and fast financing for the small and medium enterprises of the state, the Small Industrial Development Bank of India (SIDBI) offered to create a joint venture capital fund.
The offer was extended to the Association of Industries of Madhya Pradesh (AIMP), which will decide on the proposal in its managing committee meeting.
A high-level delegation of the SIDBI led by chief general manager (CGM) Kartik Alav deliberated the prominent members and office bearers of the AIMP including its president OP Dhoot here on Saturday at the AIMP office. Kartik said to the AIMP members present in the meeting that SIDBI had also executed an MOU for providing fast and easy financing to SMEs with the similar SME associations in various other states.
After the meeting talking to Free Press AIMP president Dhoot said that SIDBI extended the offer to AIMP for the creation of a joint venture capital fund.
Sharing the details of the offer industrialist Dhoot stated that presently, the officers of the SIDBI alone have been carrying out the entire financing process, but after the creation of the joint venture capital fund, two representatives of the AIMP will also assist in availing the fund to SMEs.
The AIMP representatives will help in processing of the loan and in lieu of that SIDBI will give 50 per cent of its loan processing fee to AIMP. For example, if SIDBI charges 0.5 per cent of total loan amount as a processing fee then AIMP will get 50 per cent share from that 0.5 per cent fee.
Proposal to be discussed in GBM
MD of Omega Industries and AIMP president Dhoot said that definitely the proposal was SMEs friendly, but we will have to discuss the proposal in the meeting of the managing committee of AIMP, as it is mandatory to present such proposal in the general body meeting.
If the proposal is approved, then AIMP will have to create a venture capital fund registered with registrar of companies.
Earlier, Dhoot welcomed the SIDBI delegation including CGM Kartik Alav, GM Anil Kulkarni and DGM Arup Kumar. On this occasion Alav briefed about the different schemes of the SIDBI for SMEs. He highlighted that SMEs have a great contribution to the economy and it has already generated over 1.80 crore employment in the state.
