SIDBI has been engaged in clusters through its direct lending business as also through promotion and development interventions.For focused attention, SIDBI has now set up Cluster Development Vertical to attend to cluster development from both soft and hard infra structure. In line with Shri UK Sinha committee recommendations, SIDBI has set up SIDBI Cluster Development Fund (SCDF) with support from RBI. SCDF shall extend support to State Governments to create infrastructure towards development of MSME clusters. The said support in the form of loans shall be extended to State Governments for development of both greenfield (induced clusters) and brownfield (existing cluster) MSME Clusters. Under soft side, SIDBI considers thematic engagements in clusters. Besides diagnostics, it supports clusters in addressing its skilling/reskilling, technology, marketing, credit facilitation gaps etc.