M.C. Dinesh, chairman of the MSME committee of the FKCCI, has said that the budgetary proposal to double the refinancing capability of SIDBI will have little impact on the sector.
“The previous year’s allocation of Rs. 5,000 crore has not been utilised fully. What the sector needs is a policy focus not short- term benefits,” he said. He, however, said that a delegation from the State would meet the MSME Secretary and seek more clarity on how the additional budgetary support to the SIDBI would be broken up. “Who will be eligible for these loans? Which banks will be authorized to disburse these loans?” he said.