IT industry association NASSCOM has signed a memorandum of understanding with Small Industries Development Bank of India (SIDBI) to foster entrepreneurship in the technology sector’s Micro, Small and Medium Enterprises (MSME).
“We are confident that this collaboration will provide immense value to startups, entrepreneurs and the whole Indian technology community as the financial assistance will help encourage their efforts,” said Som Mittal, president of NASSCOM.
NASSCOM and SIDBI will explore and work on policy advocacy, structuring of new risk capital and other direct credit products to create an enabling ecosystem for fostering entrepreneurship and development of MSMEs.
NASSCOM and SIDBI will also create a joint working group of three nominees from SIDBI and two from NASSCOM that will undertake the necessary assessment and evaluation of the proposals submitted by the eligible NASSCOM MSME members.
As part of the agreement, NASSCOM will organise meetings/workshops for dissemination of information regarding Risk Capital Assistance/Direct Credit Schemes of SIDBI, to identify eligible enterprises for assistance from the bank.