Small Industries Development Organizations in India
Small Industries Development Organizations such as DIC, SIDO, NSIC play crucial roles in overseeing the growth and development of small-scale entrepreneurs in India. These organizations provide a range of services including consultancy, assistance in project identification, registration, raw material supplies, training programs, and more. SIDO acts as a policy-making and coordinating agency, while NSIC focuses on supplying machinery to small industries. Learn about the functions and contributions of these organizations towards fostering small business growth in India.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
DIC-District Industries Centers SIDO-Small Industries Development Organization NSIC-National Small Industries Corporation Limited SISI-Small Industries Service Institutes SSIC-State Small Industries Corporation SIDCO- small Industries Development Corporation ITCOT-Industrial and Technical Consultancy Organization of Tamil Nadu IIC-Indian Investment Centre KVIC-Khadi and Village Industries Commission
DIC(District Industries Centers) : DIC were established in may 1978. The main responsibility of DIC is to act as the chief coordinator or multi functional agency. The small entrepreneur would get all assistance from DIC for setting up and running an industry
Functions of DIC: Identification of entrepreneur Selection of project Provisional registration under SSI Purchase of fixed asset Clearance from various department Assistance to raw material supplies Assistance to village artisans and handicrafts Interest free sales tax loan Subsidy schemes Training program Self employment for unemployed educated youth
SIDO SIDO is an policy making , coordinating and monitoring agency for the development of small scale entrepreneurs. It maintains a close relationship with government, financial institutions and other agencies which are involved in the promotion and development of small scale units. It provides a comprehensive range of consultancy serviced and technical, managerial, economic and marketing assistance to SSI units.
FUNCTIONS To assess the requirement of indigenous and imported raw materials and components for the small scale sector and to arrange their supplies. To collect data on consumer item which are imported and encourage the setting up of new units by giving them assistance. To prepare model schemes, project reports and other technical literature for entrepreneur. To secure reservation of certain product for the SSI. To provide consultancy and training services and marketing assistance to improve the competitive strength of small scale units. To evolve a national policy for the development of SSI and coordinate the policies and program of various state governments SIDO is also known as micro , small and medium enterprises development organization.
NSIC The NSIC was setup in 1955 with the objective of supplying machinery and equipment to small enterprises on a hire purchase basis and assisting them in procuring government orders for various items of stores. NSIC provide a wide range of promotional services to small scale units.
OBJECTIVES STIMULATION AND SUPPORT: To develop new enterprises through financial , marketing and technology support scheme. SUSTENANCE: Raw materials supply , bill financing , human resource. GROWTH: Strategic alliances with institutions , international program.
FUNCTIONS Financial assistance Provides for equipment leasing Higher purchase financing Facilitate training Enables small scale enterprises to obtain required technologies Assist in marketing Export assistance Undertakes the construction of industrial estate abroad
Indian Investment Centre (IIC) The IIC is an autonomous, non-profit service organisation financed and supported by the Government of India. It is concerned with the important task of promoting mutually rewarding joint ventures between Indian and foreign entrepreneurs. The center acts as a clearing house for information on economic conditions, laws, procedures, government regulations and specific opportunities for investment in India. It offers objective advice on investment conditions in the light of Industrial priorities and policies of the government of India, and on locating suitable Indian patterns for prospective foreign investors. It functions as a link between Indian and foreign parties and assists them in coming together for fruitful collaborations and formulating the terms, of joint venture participation. Its services are tailored to the need of Industrial corporations and furnished on entirely confidential basis.
Khadi and Village Industries Commission (KVIC) The Khadi and Village Industries Commission was established by an Act of Parliament in 1956. Promoting Khadi and Village Industries in the rural areas is the basic objective of KVIC. It provides marketing support to the rural industries. KVIC and established retail outlets throughout India for selling the products of the rural industries. There are 30 State Khadi and Village Industries Board functioning in India to cater to the needs of the Khadi and Village industries. The KVIC provides necessary support needed to the entrepreneurs through State Khadi and Village Industries Boards and Khadi and Village Industries Programme. Khadi and Village Industries Board in Collaboration with the concerned District Rural Development Authority has brought out the following developments: Upgrading of Khadi and Village industries technology. Improving quality of KVI products Establishing rapport with exporters for exporting KVI products Utilising distribution network of large scale and reputed business houses. Expanding need based product line in KVI.
Commercial Banks Commercial banks play a vital role in providing financial assistance to all types of entrepreneurial activities. They participated in lending program sponsored by the Government for the benefit of SSIs, agriculture rural industries. They have wider network of branches in India which facilitate them to serve the people living in rural areas and remote villages. Priority sector lending is a specific lending program of the commercial banks. Around 40% of the net bank credit is earmarked for priority sector lending. They provide term loan and working capital finance to industrial sector by means of assisting self employment opportunities in the rural and urban areas.
Types of Assistance The All India Financial Institutions provide the following kinds of assistance: Term loans 1. Rupee loan 2. Foreign currency loan Underwriting of equity / preference shares /bonds and debentures Direct subscription to the capital Issue Guarantee (IFCI, ICICI) Bills discounting scheme (IDBI) Notes 104 Operation of Technical Development fund (IDBI) Soft Loan schemes (IDBI) Seed capital Assistance (IDBI) Risk Capital Assistance (IFCI) Direct loans scheme Refinance of Industrial Loan Scheme Refinance Scheme for industrial rehabilitation Refinance scheme for modernization Development Assistance Fund Merchant banking
Facilities for non-resident Indians Letters of credit Project Promotion Backward Area Development However, the major function of all the institutions are to provide term loans. The State Level Institutions provide besides term loan, the following assistance. Underwriting of shares Direct subscription to capital Providing guidance in selection of project site etc. Operations of various incentives schemes Central Investment subsidy Sales tax loan / sales tax exemption Operation of transport subsidy Leasing finance scheme Thus, SFCs contribute about 20% of the total assistance sanctioned by all institutions taken together.
Industrial and Technical Consultancy Organisation of Tamil Nadu (ITCOT): ITCOT was established in 1979 with a paid up capital of ` 10Lakhs. It was sponsored by ICICI. ICICOT plays a lead role in entrepreneurship development. Its services to entrepreneurs include the preparation of project reports. Providing consultancy services, conducting pre-investment studies, marketing potential surveys and EOPS to the new and established entrepreneurs.
SSIC Many state governments have setup SSIC in order to undertake a number of commercial activities. The most important of these activities are distribution of scarce raw materials supply of machinery of hire purchase basis constitution and management of industrial estate procurement of orders from government departments assistance in export marketing and in certain cases provision of financial technical and managerial assistance to small enterprises.
SIDCO SIDCO is the state small industries corporation. It plays a lead role in developing small scale sector. Facilities: Provision of constructed sheds or plots in industrial estates. These are sold to entrepreneurs on hire purchase. Assistance in procuring scarce raw materials like iron, steel, paraffin wax, fatty acid etc. Financial assistance Marketing assistance
FUNCTIONS Interface between central and state government Technical support Entrepreneurship development program Promotional program Assist in preparing project profile.
SISI SISI was established in 1956 ASSISTANCE RENDERED Technical consultancy and advisory service Common facility service Training facility Testing facility Marketing assistance
