Recently, to bolster the Micro, Small, and Medium Enterprise (MSME) sector in India, the Technology Development Board (TDB) and the Small Industries Development Bank of India (SIDBI) have formalized a Memorandum of Understanding (MoU).
About Technology Development Board
- It is a statutory body constituted under the Technology Development Board Act, 1995.
- It aims to promote development and commercialization of indigenous technology and adaptation of imported technology for wider application.
- The board consists of 11 Board members.
- It provides equity capital or loans to industrial concerns and financial assistance to research and development institutions.
- The Fund has been receiving grants from the Government of India out of the cess collections from the industrial concerns under the provisions of the Research and Development Cess Act, 1986, as amended in 1995.
Key Facts about Small Industries Development Bank of India (SIDBI)
- It was established under an Act of Parliament in 1990.
- It is the Principal Financial Institution engaged in the promotion, financing & development of the Micro, Small and Medium Enterprises (MSMEs) sector and the coordination of the functions of the various institutions engaged in similar activities.
- Objective: To offer loans (both direct and indirect) to MSMEs to help in addressing the development and financial gaps in the ecosystem of MSMEs.
- It helps MSMEs in acquiring the funds they require to grow, market, develop and commercialize their technologies and innovative products.
- It was made responsible for administering the Small Industries Development Fund and National Equity Fund.
Q1) What are the objectives of the Small Industries Development Fund?
It provides technical, managerial, economic and marketing assistance to SSIs through its network and also refinance assistance for development, expansion, modernisation, rehabilitation of SSIs.