Bhubaneswar, Nov 16 Orissa State Financial Corp (OSFC) has tied up with Small Industries Development Bank of India (SIDBI) to strengthen credit flow into the small and medium enterprises sector in the state.

As per the agreement, SIDBI will provide re-finance facilities for the development of small scale industries at concessional rate, an OSFC official told IANS.

Officials of SIDBI and OSFC have signed an agreement in this regard in the presence of Chief Minister Naveen Patnaik, the official said.

"OSFC will also receive capacity building support from SIDBI for its operation," he added.

OSFC has not been able to draw any refinance from SIDBI since 2003 because there was no fresh lending from 2003 to till date. This has affected the development of the small scale industries in the state, he said.

"Now OSFC has become an eligible institution to get refinance."

Last month, the state government had signed an agreement with Central Bank of India for the development of micro, small and medium enterprises (MSME). (IANS)