Date:14/07/2005 URL: http://www.thehindubusinessline.com/2005/07/14/stories/2005071401830600.htm

Back BoB, SIDBI sign co-financing pact

Our Bureau

Mumbai , July 13

BANK of Baroda (BoB) and Small Industries Development Bank (SIDBI) of India have signed an MoU for co-financing of projects in the SME sector and infrastructure projects, according to a bank release.

Under this arrangement, the two banks will work jointly to identify projects and take up co-financing or exclusive financing of term loans, while working capital would be exclusively extended by BoB.

To begin with, the tie-up would be introduced at eight centres covering 48 clusters involved in industries such as textiles, pharmaceuticals, and electrical goods.

SIDBI already has tie-ups with Bank of India, UCO Bank, and Yes Bank to offer credit and other financial products to the SME sector.

The release quoted Dr Anil Khandelwal, Chairman and Managing Director of Bank of Baroda, as saying that the bank sees immense potential in the SSI sector.

BoB also signed an MoU with the Small Farmers Agri-Business Consortium (SFAC), a society under the Department of Agriculture and Co-operation, Ministry of Agriculture, for the implementation of the venture capital and project development assistance schemes of SFAC.

As per the agreement, BoB will appraise the agriculture projects, allied activities, agro-processing, etc., and sanction the required term loans and working capital assistance.

SFAC will provide venture capital to eligible units based on the request made by the bank.

Under project development assistance, SFAC will provide funds for preparation of detailed project reports (DPRs) for producer groups, entrepreneurs, and trained agri-business graduates for setting up of various agri-business projects involving high investment.