New Delhi, Oct 30 (KNN) As many as three Indian firms in the MSME sector will receive 4.2 million pounds sterling (Rs 42.38 crore) from the UK Department for International Development (DFID) for expansion of their businesses which are related directly or indirectly to the lives of poor people.
The companies receiving the UK Samridhi funds are Glocal Healthcare System (Rs 24.6 crore), Gramco Infratech (Rs 14.7 crore) and Shikhar Dairy (Rs 1.9 crore).
Through the Rs 400 crore (£40m) Samridhi fund, UK DFID will extend support to the businesses which directly affect the poor as producers, consumers or workers, over seven years, across eight low-income Indian states.
The announcement was made on Monday by the UK Chief Secretary to the Treasury, Danny Alexander.
DFID, United Kingdom, in association with Small Industries Development Bank of India (SIDBI), has envisaged the creation of the Samridhi Fund to provide capital to social enterprises which can deliver both financial and social returns, in Bihar, Uttar Pradesh, Madhya Pradesh, Orissa, Chattisgarh, Jharkhand, Rajasthan and West Bengal.
The primary focus of the fund is to invest in the MSME sector and provide financial assistance to companies with developmental impact.
Glocal Healthcare System will receive £2.5 million to operate a chain of affordable hospitals benefitting 1.2 million rural patients in low income Indian states by 2020; Gramco Infratech has secured £1.5 million to build agricultural warehouses to provide storage and value added services to more than 3,000 farmers every season in the state of Madhya Pradesh; and Shikhar Dairy will receive £0.2 million to set up a professionally managed dairy that allows 300 landless rural poor to own cows and a dairy in Jhansi district of Uttar Pradesh.
Addressing the gathering, at an event at the office of the Small Industries Development Bank of India (SIDBI), DFID's partners in the development fund, Alexander said, “I am delighted the first three companies have managed to secure money from the Samridhi fund and that more will be announced shortly. These winning projects are a great example of UK development funds complementing private sector investment and making a real difference to more than a million of people in India.”
“I am also pleased to see that we are moving from traditional development programmes to new partnerships focussed on supporting market based solutions to development challenges and sharing technical expertise. This approach reflects India’s changing place in the world.”
In addition to the three projects, funding for three other businesses is being finalised and these will be announced shortly.
This will bring the total investment in the first tranche of investments to a total of £10 million in six enterprises across a range of sectors including agriculture, healthcare, clean energy and water. In total over 90 investment opportunities were assessed.
The fund, managed by SIDBI Venture Capital, is the first in India to focus on development projects in eight low income Indian states, Bihar, Uttar Pradesh, Madhya Pradesh, Odisha, Chhattisgarh, Jharkhand, Rajasthan and West Bengal.