17 Dec, 2007, 1552 hrs IST, PTI

CHANDIGARH: SIDBI has earmarked Rs 11 crore to provide direct equity support to SMEs of north India including Punjab, Haryana, Delhi and Chandigarh to help them carry out their expansion plans.

"We decided to provide SMEs of north India funds through our direct equity support scheme so as to help them in realising their plans," SIDBI General Manager Namgial said here.

There are a number of small scale units in this region, having a turnover of Rs 25-30 crore, who do not get required funds for their expansion programme despite the fact that their businesses are in growth mode, he added.

Under the scheme, Small Industries Development Bank of India (SIDBI) would acquire equity stake in the SME, to whom it would provide funds.

"The stake is generally less than 25-30 per cent in a SME and the unit gets required funds from us. Although, in some cases, we also appoint our man as director in the company in which we have acquired stake," he said.

SIDBI projected to provide equity support of Rs 3 crore each to small scale unit of Punjab, Chandigarh and Haryana and Rs 2 crore for Delhi during the current fiscal.