Chandigarh, Nov 27 (KNN) Small Industries Development Bank of India (SIDBI) has committed Rs 250 crore to the Punjab government for the current fiscal year.

The MSME lender aims to support the agro-processing and infrastructure at focal points in Punjab through this funding, reported The Tribune.

The partnership will enable establishment of infrastructure and its upgrade for development of MSME cluster-related infrastructure in Punjab. 

“This is for the first time we are going to sign MoU with Punjab Government for SIDBI Cluster Development Fund (SCDF) to accelerate MSME cluster infrastructure development. For the current fiscal year, we have committed Rs 250 crore,” said THR Samad, Deputy GM, SIDBI.

SIDBI has already received four detailed project reports (DPRs) from the state government for setting up common facility centre for agro-processing with an investment of Rs 140 crore. 

These includes individual quick freezing plant for French fries, chilly processing plant, tomato processing plant at Abohar and ready to eat unit at Fatehgarh Sahib. 

The move will not only give boost to agro-processing sector but would also ensure remunerative price to the farmers. In addition to this, it will reduce government’s dependence on private sector for processing horticulture produce.

One more DPR pertaining to agro-processing will be submitted to SIDBI very soon by the state government which will entail an investment of Rs 40 crore, according to officials.

Similarly, infrastructure at focal points will be spruced up at Amritsar, Bathinda, SAS Nagar, Patiala and Rajpura. The focal points in the state are in a dilapidated condition due to which development is being hampered. 

So, a complete overhaul of the road infrastructure of the focal points in the state will also attract more investment. Also, this structured support will lend impetus to the culture of enterprise development in the state.

SCDF was announced by SIDBI in August 2021 with the Reserve Bank of India’s support to attend to the hard infrastructure facilities in clusters. The SCDF scheme provides moderately priced loans to state governments for upgrading various existing MSME clusters and also for the creation of new industrial infrastructure in states. 

SIDBI will facilitate the availability of SCDF to enhance infrastructure development of both greenfield (induced clusters) and brownfield clusters.

(KNN Bureau)