SIDBI to extend direct funding facility to VLEs in CSCs
24 May 2018
The Small Industries Development Bank of India (SIDBI) has signed a memorandum of understanding (MoU) with the special purpose vehicle that operates common service centres (CSE SPV) for providing financial support to CSCs across the country.
Common Services Centers (CSC) scheme is one of the mission mode projects under the Digital India Programme. CSCs are the access points for delivery of services to citizens.
“I am happy that SIDBI has come forward to support CSCs across the country to promote rural entrepreneurship, and with financial support new avenues of opportunities will come up for CSCs,” minister Ravi Shankar Prasad said during the function.
Praising the efforts of CSCs in improving women’s health and hygiene through Stree Swabhiman initiative, he said, “CSCs are doing outstanding work by providing low-cost sanitary napkins to girls and women in rural India. There are 110 sanitary napkins manufacturing units and till the end of this year each block will have one.”
Referring DigiGaon Dhanaudi Kalan in Gautam Buddha Nagar, UP, Ajay Prakash Sawhney, Secretary, MEITY, said, “As CSCs across the country have gained momentum, financial support by SIDBI will undoubtedly create new opportunities for them.”
“Financial support by SIDBI will in long run help upgrade the potential of existing CSCs along with creating new opportunities to rural population,” Dinesh Kumar Tyagi CEO, CSC SPV, asserted.
Through the MoU, SIDBI seeks to extend financial support to the village level entrepreneurs (VLEs) of common services centers, with a minimum one year of operation, under the direct financing window of SIDBI.
Under the direct financing window, CSC SPV will approve the list of VLEs, within 25km distance of SIDBI branch offices, who require financial support. To avail the loan, the VLEs need to submit their CSC project, with maximum project outlay of Rs3.50 lakh and term loan requirement not exceeding Rs2 lakh per project.
Through the MoU, both CSC SPV and SIDBI seek to work together to bring more citizens under the ambit of financial inclusion. It also seeks to enhance the financial viability of CSCs by including additional services in their bouquet of products.