A Memorandum of Understanding (MoU) has been formally established by the Technology Development Board (TDB) and the Small Industries Development Bank of India (SIDBI) to make it easier for businesses involved in the development and commercial application of domestic or imported technology to obtain credit, marking a significant step towards strengthening the Micro, Small, and Medium Enterprise (MSME) sector in India.
TDB and SIDBI have entered into a credit alliance through this MoU, whereby TDB and SIDBI will refer additional funding needs of companies they have previously funded to each other.
Both organizations will streamline coordination for seamless referral exchange by designating key contacts. TDB and SIDBI will also provide financial assistance to qualified MSMEs in accordance with their respective policy guidelines.
The collaboration extends beyond financial support, with the parties also planning joint outreach/marketing activities to promote the initiative and reach a wider audience. The scope of these outreach/marketing activities will be mutually agreed upon during the implementation of the terms outlined in the MoU.
The partnership between TDB and SIDBI reflects a shared commitment to supporting MSMEs in their efforts to develop and apply cutting-edge technology for the betterment of the society at large. This collaboration is expected to pave the way for increased innovation, job creation, and overall economic development in the MSME sector.
Speaking on the collaboration, Shri Rajesh Kumar Pathak, Secretary, TDB, expressed enthusiasm for the partnership. “This collaboration with SIDBI marks a significant milestone in our mission to promote technology development. By combining our strengths, we aim to create a conducive environment for MSMEs engaged in innovative endeavours, fostering entrepreneurship and economic growth,” he said.
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Source: PIB
