Tuesday, March 26, 2013

Rakesh Rewari

As the number of MSMEs grows at a Brisk Pace, SIDBI’s mission of Providing Timely and Adequate Financing only gets more Daunting. Rakesh Rewari, Deputy MD, SIDBI, discusses The Bank’s plans with Mona Mehta

Rakesh Rewari, Deputy Managing Director, SIDBI, who possesses 38 years of experience in commercial & development banking with leading financial institutions and banks in India, covering a wide range of activities relating to MSME (MIcro, Small and Medium Enterprises) financing, venture financing, technology financing, entrepreneurship, micro credit & incubation funds, is a busy man these days. In a tête-à-tête with B&E’s Mona Mehta, Rewari reveals how SIDBI is grappling with the challenges faced by MSMEs in India.

B&E: How are you handling the tight liquidity scenario post RBI’s credit policy announcement? Specifically, how are you supporting MSMEs?
Rakesh Rewari (RR): SIDBI has provided timely financial support to the MSME sector during the global financial crisis and economic slowdown to overcome their liquidity problem. During FY 2009-10, SIDBI provided additional support to MSMEs, such as need-based restructuring of debt, coverage of loans up to Rs.10 million under credit guarantee, providing customised risk capital to MSMEs and setting up an e-platform called NSE Trade Receivables Engine for E-discounting (NTREES) for discounting of MSMEs receivables on real time basis. Further, the bank accorded greater thrust to sustainable development of the MSME sector by way of, inter alia, promoting energy efficiency, clean production credit lines, Green Rating, et al.

B&E: But are you also addressing the issue of inefficient energy use in the MSME space?
RR: To improve productivity and competitiveness of MSMEs through energy efficiency (EE) measures in their production process, the bank upscaled its EE financing by contracting bilateral Lines of Credit (LoC) from Japan International Cooperation Agency (JICA), Kreditanstalt fur Wiederaufbau (KfW) and French Development Agency (AFD). Some of the notable EE initiatives of SIDBI include providing collateral free credit to Mumbai taxi owners to replace their existing petrol taxis with CNG fitted taxis, special refinancing to Delhi Financial Corporation for assisting more than 600 LPG fitted auto rickshaws at Chandigarh, financial support to Bhartiya Micro Credit to provide 500 rickshaws to disadvantaged persons in and around Lucknow and financial assistance to Friends of Women’s World Banking for providing 50,000 solar lanterns to micro entrepreneurs in Manipur and other states of North Eastern Region.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

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