The Union government on 22 May 2012 tabled the Small Industries
Development Bank of India (Amendment) Bill, 2012 in the Lok Sabha,
allowing sectors including floriculture, tourism, restaurants, and the
entertainment industry to access loans from the bank.
The SIDBI (Amendment) Bill tabled by Finance Minister Pranab Mukherjee
•
empowers SIDBI to confiscate the mortgaged property or right to
transfer by way of lease or sale in case enterprise makes a default in
repayment of any loan or advances.
• The bill envisages the
widening of the scope of industrial concerns as well as aims at
conferring more powers upon the board of directors of bank to decide
investment limit for these industrial concerns.
It was believed that an amendment would replace definition and
expression of industrial concern in small sector with industrial concern
or micro enterprise or small enterprise or medium enterprise in the
SIDBI Act 1989. The board of directors would be empowered to unanimously
resolve to decide the investment limit for the purpose of industrial
concern.
The change in definition as stated in the bill will thus help
businesses such as convention centres, travel and transport, tourist
service agencies, guidance and counselling services to tourists,
financial assistance by way of venture capital, risk capital factoring
and discounting , construction and development of roads to take loans
and advances from the bank.
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