Small Industries Development Bank of India (SIDBI), the country's principal financial institution engaged in the promotion, financing, and development of Micro, Small and Medium Enterprises (MSME), has entered into a Memorandum of Understanding (MoU) with Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) to enlarge the financial outreach and to support MSMEs in Aerospace & Defence (A&D) sector through direct financing. The MoU executed by Shri V. Satya Venkata Rao, Deputy Managing Director, SIDBI and Shri Awanish Kumar Awasthi, IAS, Chief Executive Officer, UPEIDA, was, formally exchanged by Shri Prakash Kumar, Chief General Manager, SIDBI.
Under the MoU, SIDBI would consider funding financial requirements of MSMEs setting up/ having units in Uttar Pradesh Defence Industrial Corridor (UPDIC) and other industrial areas developed by UPEIDA. The MoU would help MSMEs to set up industrial units in the state of Uttar Pradesh. The key highlights of the arrangement are, a) when any allotment letter(s) for industrial land are issued by UPEIDA, it shall provide details of allottees to SIDBI, b) SIDBI will contact the allottees for their financial needs. On receipt of the duly filled in application, SIDBI will process the same as per guidelines, c) the present arrangement is aimed at development of a strong foundation for MSMEs in the state of Uttar Pradesh, which would attract investment from allottees and accelerate implementation of their projects, and d) UPEIDA and SIDBI shall extend mutual co-operation for various other initiatives being undertaken for the benefit of MSMEs in UPDIC and other industrial areas developed by UPEIDA, which shall include, holding/ participating in outreach events, seminars and webinars for creating awareness among MSMEs about various financial products and initiatives being undertaken by SIDBI, including a dedicated web-portal (defence.sidbi.in), knowledge series for MSMEs in A&D sector, etc.
As regards the arrangement with UPEIDA, Shri V. Satya Venkata Rao, Deputy Managing Director, SIDBI said, "SIDBI's emphasis is on strengthening the MSME eco-system and realizing GoI's ideology of "Make In India" and making India "Self-reliant". This arrangement will support MSMEs setting up industrial units in the State of Uttar Pradesh by meeting their credit needs as well as addressing credit-plus requirements, viz, knowledge inputs through dedicated web-portal, literature, events/webinars etc."