Sidbi to unveil Rs 8.50b VC funds to support SMEs

KOLKATA, Sept 17 (Economic Times): Small Industries Development Bank of India, or Sidbi, plans to launch three venture capital funds worth Rs 8.50 billion this fiscal to support small and medium enterprises. "The domestic market for SMEs is buoyant. The funds will support the growth story," Sidbi managing director S Muhnot told newsmen in Kolkata. The SME sector grew 11 per cent last year. The largest of the venture funds-the India Opportunity Fund - will be worth Rs 5.0 billion and will be given to SMEs having a good track record. The second one will be worth Rs 500 million and will be floated to encourage and invest in small units planning to enter the capital market through the proposed SME exchanges.