Setting up of industrial estates / development of industrial areas including such projects found eligible under KVIC model.
Strengthening of existing industrial clusters / estates by providing increased amenities for smooth working of the industrial units. Setting up of warehousing facilities for SSI products / units.
Providing support services viz., common utility centres such as convention halls, trade centres, raw material depots, warehousing, tool rooms / testing centres, housing for industrial workers, etc. Any other infrastructural facilities which will benefit predominantly SSI units / entrepreneurs.
One of the major factors inhibiting the growth of Small Medium Enterprises (SMEs) is the availability of adequate owners’ capital. Most of the SMEs are also not able to attract external equity including venture capital funding due to high perceived risk, limited exit options and high transaction cost.
Also as more than 90% of the SMEs are in non-corporate structure and hence can not absorb equity. SIDBI, based on the best international practices, has come out with various risk capital products - quasi equity/ mezzanine financial instruments which are provided on the backing of cash flows from the business rather than asset cover/ collaterals. Risk capital is offered in flexible manner with respect to the structuring of return and repayments to the risk capital provider, thereby ensuring greater chances of success of the ventures.
Cost of Project : Not to exceed Rs.100 million.
Debt Equity Ratio: Not more than 3:1
Repayment Period - Not exceeding 10 years including initial moratorium period of upto 3 years.