The Small Industries Development Bank of India (SIDBI) has recently signed a Memorandum of Understanding (MOU) with Airbus Helicopters in order to finance the purchase of the helicopters. With this deal, the bank has forayed into the financing of rotary-wing aircraft which is rapidly growing.
Key highlights
- Airbus will serve as the knowledge partner for the bank, providing technical and helicopter industry knowledge and supporting decision-making. SIDBI will evaluate the prospects and offer financing solutions.
- Under the agreement, both parties will work to identify potential civil helicopter operators in the country interested in opting for financing while purchasing Airbus helicopters.
- This collaboration addresses the financial and development needs of India’s fast-growing rotary wing sector.
- This partnership will make civil helicopters more accessible to operators in India and help expand the market.
- The majority of helicopters used in India are produced by foreign companies. Hindustan Aeronautics Limited (HAL) is the only Indian company to manufacture fixed-wing aircraft in the country. It also has a small presence within the civil helicopter industry.
About SIDBI
- Established on April 2, 1990, through an Act in parliament, SIDBI is the apex regulatory body for overall licencing and regulation of finance companies providing services to MSMEs.
- It works under the Ministry of Finance, Government of India, and is headquartered in Lucknow.
- Previously, it was a wholly owned subsidiary of IDBI Bank. But on March 27, 2000, it was separated from the IDBI Bank.
- It is regulated and supervised by the RBI.
- It provides financial assistance to banks, small finance banks, and NBFCs, besides lending to MSMEs directly.
About HAL
- It is a public-sector aerospace and defence company, established on December 23, 1940.
- Its headquarters is located in Bangalore.
- The President of India appoints a board of directors who manage HAL’s operations.
