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New Delhi, Aug 16 PHD Chamber has urged the Small Industrial Development Bank of India (SIDBI) to provide details of its disbursements to micro, small and medium enterprises and the number of beneficiaries, the chamber said in a release.

The President of the Chamber, Dr L. K. Malhotra, said in a statement that “SIDBI should provide the details of assistance rendered under its various schemes. The information should be scheme-wise, contain the benefits accruing under each scheme and specify the number of people benefited by these schemes on a yearly basis for the last three years.”

“The objective is to know more about the deployment of SIDBI’s resources for various well-designed schemes and their impact on SMEs,” he said.

According to the chamber, at the end of March 2007 total resources amounting to Rs 21,229.37 crore were available to SIDBI. Out of this, only Rs 4,121.48 crore (19.41 per cent) was deployed in loans and advances to industrial concerns.

The major portion of the remaining resources Rs 14,589.52 crore (68.73 per cent) were kept deployed in loans and advances to banks and financial institutions, investment in securities, shares, bonds, cash and bank balances, etc.

According to an analysis done by the chamber, during 2006-07 SIDBI disbursed Rs10,225.37 crore, out of which direct project financing was Rs 1,717.13 crore (16.79 per cent) and micro finance was Rs 379.02 crore (3.70 per cent). Significantly, more than 50 per cent of the total disbursement made by SIDBI in 2006-07 (Rs 5,189.12 crore) was towards refinance to the banks and FIs. The average return on investment made by SIDBI in Government securities, bonds, shares, debentures etc during the year 2006-07 was only 3.90 per cent, which is much less than that SIDBI could earn by utilising the funds in direct financing of MSME units, the release added.

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