SIDBI to extend funding faciliy to VLEs in CSEs

Speed Post News Network

New Delhi : Common Services Centers Special Purpose Vehicle (CSC SPV) and Small Industries Development Bank of India (SIDBI) on May 24, 2018, signed an MoU for  providing financial support to CSCs across the country here in the  presence of Minister for Electronics & IT and Law & Justice, Ravi Shankar Prasad.

During the meeting, Prasad said, “I am happy that SIDBI has come forward to support CSCs across the country to promote rural entrepreneurship, and with financial support  new avenues of opportunities will come up for CSCs.” Praising the efforts of CSCs in improving women’s health and hygiene through Stree Swabhiman initiative, he said, “CSCs are doing outstanding work by providing low-cost sanitary napkins to girls and women in rural India. There are 110 sanitary napkins manufacturing units and by the end of this year each block will have one.”

Referring to DigiGaon Dhanaudi Kalan in Gautam Buddha Nagar, UP, Ajay Prakash Sawhney, Secretary, MEITY, said, “As CSCs across the country have gained momentum, financial support by SIDBI will undoubtedly create new opportunities for them.”

Dr. Dinesh Kumar Tyagi, CEO, CSC SPV, asserted, “Financial support by SIDBI will in long run help upgrade the potential of existing CSCs along with creating new  opportunities to rural population.”

Through the MoU, the SIDBI seeks to extend financial support to the Village Level Entrepreneurs (VLEs) of Common Services Centers, with minimum one year of operation, under the Direct Financing Window of SIDBI.

Under the Direct Financing Window, CSC SPV will approve the list of VLEs within 25 km distance of SIDBI Branch Offices, who require financial support. To avail the loan, the VLEs need to submit their CSC project with maximum project outlay of Rs. 3.50 lakh and term loan requirement not exceeding Rs. 2 lakh per project.

Through the MoU, both CSC SPV and SIDBI seek to work together to bring more citizens under the ambit of financial inclusion.  Moreover, it also seeks to enhance the financial viability of CSCs by including additional services in their bouquet of products, according to a PIB release.