SIDBI provides capital to social enterprises

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The Small Industries Development Bank of India (SIDBI) in association with UK’s Department for International Development (DFID) and the SIDBI Venture Capital Limited (SVCL) has  set up the Samridhi Fund to provide capital to social enterprises which can deliver both financial and social returns, in  the following eight (8) states  of India: Bihar, Uttar Pradesh, Madhya Pradesh, Odisha, Chhattisgarh, Jharkhand, Rajasthan and West Bengal. SIDBI is the fund sponsor and the Fund is being managed by SVCL, a wholly owned subsidiary of SIDBI. Two other Indian institutions are also expected to contribute to this Fund shortly. The primary focus of the Fund will be to provide financial assistance by way of equity or equity linked instruments like convertible debentures, preference shares, etc. to companies with developmental impact. In addition, these companies shall be economically viable; provide access to markets for the poor; be socially relevant and impact the poor as customers, producers or employees; increase the flow of capital to the above mentioned states; and focus on environmental, social and governance matters. Target sectors shall include, but not be limited to: water sanitation, affordable healthcare, agriculture & allied services, clean energy, financial inclusion, education, skill building and others. The Fund has made investments in 5 companies as on March 31, 2014.

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