In order to increase the credit flow to the small and medium enterprises (SMEs) sector in Orissa the state owned Orissa State Financial Corporation (OSFC) has tied up with Small Industries Development
The OSFC has signed a memorandum of understanding (MoU) with SIDBI, which is a part of a restructuring package approved by the state cabinet. The move has enabled the OSFC to be eligible to get refinance from SDBI as it has a positive net worth and capital adequacy of 6.25 per cent.
Every year, about 5000 new enterprises get registered in the MSME sector and they require provision of credit and skill upgradation. The chief minister of the state, Naveen Patnaik, said that the restructuring of the sick OSFC by infusion of Rs 352 crore had once again made the financing institution a vibrant entity to support the MSMEs.