SIDBI to extend direct funding facility to VLEs in CSCs

CSC SPV and Small Industries Development Bank of India (SIDBI) signed a MoU for providing financial support to CSCs across the country here today in the auspicious presence of Minister of Electronics & IT and Law & Justice, Shri Ravi Shankar Prasad.

During the meeting, Hon’ Minister Shri Ravi Shankar Prasad said that “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.”

Through the MoU, the SIDBI seeks to extend financial support to the Village Level Entrepreneurs (VLEs) of Common Services Centers, with 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 25 km distance of SIDBI Branch Offices, who require financial support. To avail the loan, the VLEs need to submit their CSC project, with a maximum project outlay of Rs. 3.50 lakh and term loan requirement not exceeding Rs. 2 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. Moreover, it also seeks to enhance the financial viability of CSCs by including additional services in their bouquet of products.

Common Services Centers (CSCs) are a strategic cornerstone of the Digital India programme. They are the access points for delivery of various electronic services to villages in India, thereby contributing to a digitally and financially inclusive society.

CSCs enable the three vision areas of the Digital India programme:

  • Digital infrastructure as a core utility to every citizen.
  • Governance and services on demand.
  • Digital empowerment of citizens.

CSCs are more than service delivery points in rural India. They are positioned as change agents, promoting rural entrepreneurship and building rural capacities and livelihoods. They are enablers of community participation and collective action for engendering social change through a bottom-up approach with the key focus on the rural citizen.

The CSC project, which forms a strategic component of the National eGovernance Plan was approved by the Government in May 2006, as part of its commitment in the National Common Minimum Programme to introduce e-governance on a massive scale.

It is also one of the approved projects under the Integrated Mission Mode Projects of the National eGovernance Plan.

About SIDBI:

Small Industries Development Bank of India (SIDBI) was set up on 2nd April 1990 under an Act of Parliament.

It acts as the Principal Financial Institution for Promotion, Financing, and Development of the Micro, Small and Medium Enterprise (MSME) sector as well as for co-ordination of functions of institutions engaged in similar activities.

Please follow and like us:

Leave a Reply

Your email address will not be published. Required fields are marked *