This institutional support system has been designed at following four levels: 1. Central Government 2. State Government 3. Non-Government Support System 4. District Industries Centres (DIC).
Each shall be discussed briefly, one by one, below:
Development Act, 2006 and established the National Board for Micro, Small and Medium Enterprises (NBMSME) and made rules there under in the year 2006. This Board examines the factors affecting promotion and development of MSMEs and reviews policies and programmes from time to time relating to these enterprises, from time to time and makes recommendations to the Government in formulating the policies for the growth of MSMEs.
The Government of India constituted the National Commission for Enterprises in the Unorganised Sector (NCEUS) to examine the problems of the enterprises in the unorganized/informal sector. The Commission has made recommendations to provide technical, marketing and credit support to these enterprises.
The various policies and schemes of Government assistance for the development of rural industries insist on the utilisation of local resources and raw materials and locally available manpower. These are translated into action through various agencies, departments, corporations, etc., all coming under the purview of the industries department. All these are primarily concerned with the promotion of small and rural industries.
Some such support measures are being discussed briefly below:
It was established in 1954 to provide effective coordination and inter- institutional linkages for the benefit of small scale sector.
It consists of the following members:
a. Union Industry Minister
b. State Industry Minister
c. Selected members of Parliament
d. Secretaries of department concerned
e. Eminent experts in the field
NABARD is designated as an apex development bank in the country. This national bank was established in 1982 by a Special Act of the Parliament, with a mandate to uplift rural India by facilitating credit flow in agriculture, cottage and village industries, handicrafts and small-scale industries. It is also required to support non-farm sector while promoting other allied economic activities in rural areas. NABARD functions to promote sustainable rural development for attaining prosperity of rural areas in India.
It is basically concerned with “matters concerning policy, as well as planning and operations in the field of credit for agriculture and other economic activities in rural areas in India”. It is worth noting with reference to NABARD that RBI has sold its own stake to the Government of India. Therefore, Government of India holds 99% stake in NABARD.
Role of NABARD:
It is an apex institution which has power to deal with all matters concerning policy, planning as well as operations in giving credit for agriculture and other economic activities in the rural areas.
I. It is a refinancing agency for those institutions that provide investment and production credit for promoting the several developmental programs for rural development.
II. It is improving the absorptive capacity of the credit delivery system in India, including monitoring, formulation of rehabilitation schemes, restructuring of credit institutions, and training of personnel.
III. It co-ordinates the rural credit financing activities of all sorts of institutions engaged in developmental work at the field level while maintaining liaison with Government of India, and State Governments, and also RBI and other national level institutions that are concerned with policy formulation.
IV. It prepares rural credit plans, annually, for all districts in the country.
V. It also promotes research in rural banking, and the field of agriculture and rural development.
a. Attracting youth to rural non-farm sector
b. District Industries Rural Project (DRIP)
c. Rural Entrepreneurship Development Programme (REDP).
It was constituted in 1954 to develop support services for promotion of SSS. Over the years, it has seen its role evolve into an agency for advocacy, hand holding and facilitation for the small industries sector. It has over 60 offices and 21 autonomous bodies under its management.
ii. Training Institutions
iii. And Project-cum-Process Development Centres.
i. Facilities for testing, tool making, training for entrepreneurship development, preparation of project and product profiles, technical and managerial consultancy, assistance for exports, pollution and energy audits etc.
ii. The SIDO provides economic information services and advises Government in policy formulation for the promotion and development of SSIs.
Consequent to the increased globalization of the Indian economy, small industries are required to face new challenges. The SIDO has recognised the changed environment and is currently focusing on providing support in the fields of credit, marketing, technology and infrastructure to SSIs. Global trends and national developments have accentuated SIDO’s role as a catalyst of growth of small enterprises in the country.
The Institutions/Centres Administered by SIDO:
The SIDO has promoted the following institutes and centres and is responsible for their management:
I. Small Industries Service Institutes (SISI):
The institute functions under the Ministry of SSI, Government of India and it provides services such as preparation of project reports, training programmes in different activities, extending technical assistance and offering guidance on Industrial policy of Government of India. It is a pioneer organisation, to develop small scale industries through counselling, consultancy/training. It also assists the industries in marketing the products and acquiring quality standards.
SISI also provides various types of extension services and assistance in setting up of units, promoting and developing product and services by the Small Scale Industries. The small industries service institutes have been set up in state capitals and other places all over the country to provide consultancy and training to small entrepreneurs both existing and prospective. At present the SIDO has been administering 28 SISIs and 30 branch SISIs working in different parts of the country.
II. Product-cum-Process Development Centres:
These have been promoted to provide specific service to different types of small scale units concentrated in different locations. These centres are responsible for serving as research and development institutions in areas of dense industry clusters, to encourage product design and innovation, to develop new processes and upgrade the existing level of technology, to act as centres of excellence in respective areas and • to provide technical and managerial support services.
III. Regional Training Centres (RTCs):
These centres are located in major cities and are responsible for quality awareness programme among the small units. For this purpose, they are engaged in systematic testing and technical consultancy services. These centres are also responsible for assisting field testing stations which are expected to provide testing services to SSI units.
IV. Establishment of Training Institutes:
The SIDO also controls the affairs of NISIET (Hyderabad), NIESBUD (New Delhi) and integrated training centre (Industries) at Nilokheri. These institutions are responsible for arranging training facility to entrepreneurial trainers.
Main Objectives of SIDO are:
i. To formulate policy for promotion of SSI
ii. To Provide coordination of policies of state government
iii. To collect and disseminate information
iv. To provide wide range of extension services through allied institutions
v. To promote facilities for technology up gradation
vi. To offer consultancy services
Various Services Rendered by SIDO:
i. Entrepreneurship development and Management training.
ii. Efforts for skill development.
iii. Preparation of feasibility reports for different products.
iv. Provision of testing services.
v. Availability of tool room facilities.
The National Small Industries Corporation (NSIC) Ltd. was established by the Government as a Public Sector Company in 1955.
Its main functions are:
i. To arrange for Supply of machinery and equipment.
ii. To arrange Provision of financial assistance.
iii. To provide Assistance for arrangement of raw materials.
iv. To aid establishment of technology transfer centres.
v. To make arrangement of marketing assistance.
vi. To ensure priority in government purchase programme
vii. To promote, aid, and foster the growth of micro and small enterprises in the country, generally on a commercial basis
viii. To provides a variety of support services to micro and small enterprises catering to their different requirements in the areas of raw material procurement; product marketing; credit rating; acquisition of technologies; adoption of modern management practices, arranging for business partners, ensuring technology transfer programmes through missions, delegations and expositions etc.
The Technical Service Centres (TSCs), established by NSIC are functioning in different parts of the country, providing diverse technical support to the small scale sector.
Some of which are:
Entrepreneurship Development Institute of India:
Entrepreneurship development and training is one of the key elements for the promotion of micro, small and medium enterprises, especially for creation of new enterprises by the first generation entrepreneurs. In order to inculcate the entrepreneurial culture amongst the first generation of entrepreneurs on a regular basis, the Ministry has set up
1. National Institute for Micro, Small and Medium Enterprises (NI-MSME) at Hyderabad,
2. National Institute for Entrepreneurship and Small Business Development (NIESBUD) at NOIDA (Uttar Pradesh)
3. And Indian Institute of Entrepreneurship (IIE) at Guwahati, as autonomous societies.
These institutes are engaged in developing training modules; undertaking research & training; and providing consultancy services for entrepreneurship development & promotion of MSMEs, including enhancement of their competitiveness.
1. National Institute for Micro, Small and Medium Enterprises (NI-MSME):
The National Institute of Micro, Small and Medium Enterprises was established with the mission of promoting the growth and development of MSMEs through services in the areas of policy, entrepreneurship, technology, information, education, management and extension. NIMSME has designed specialized and need-based programmes, workshops and seminars in tune with the current developments in policy and the economy.
NIMSME has been providing unstinted support, in terms of offering services like research, consultancy, information, training and extension not only to enterprises but also to concerned developmental agencies. It deserves all appreciation for its outstanding work and contribution to MSMEs, the demand for more such institutes in the country is gathering momentum.
2. National Institute for Entrepreneurship and Small Business Development (NIESBUD):
NIESBUD is an apex body established by Ministry of Micro, Small & Medium Enterprises. The Government of India for coordinating, training and overseeing the activities of various institutions/agencies engaged in entrepreneurship development particularly in the area of small industry and small business. Its main activities are to evolve effective training strategies and methodology, standardising model syllabi for training various target groups, formulating scientific selection procedure, developing training aids, manuals and tools, facilitating and supporting Central/State/ Other agencies in organising entrepreneurship development programmes, conducting training programmes for promoters, trainers and entrepreneurs and undertaking research and exchange experiences globally
3. Indian Institute of Entrepreneurship (IIE):
The Indian Institute of Entrepreneurship (HE) was established in the year 1993 in Guwahati by the erstwhile Ministry of Industry (now the Ministry of Micro, Small and Medium Enterprises), Government of India as an autonomous national institute with an aim to undertake training, research and consultancy activities in small and micro enterprises focusing on entrepreneurship development.
The main objectives of the institute are:
(1) To organize and conduct training for entrepreneurship development,
(2) To evolve strategies & methodologies for different target groups & locations & conduct field tests,
(3) To identify training needs and offer training programmers to Government and non-Government organisations engaged in promoting and supporting entrepreneurship etc.
It is a Subsidiary of IDBI and was setup as an act of parliament, for ensuring larger flow of financial and non-financial assistance to the small scale sector.
The SIDBI has taken over the outstanding portfolio of the IDBI relating to the small scale sector for promotion, financing and development of the SSI sector and for coordinating the activities of other institutions. It is the principal financial institution for the promotion, financing and development of industry in the small, tiny and cottage sectors and for co-coordinating the functions of the institutions engaged in similar activities.
Over the years SIDBI has striven to fulfill the role enshrined in its charter by formulating and reorienting its policies, gearing up operations and enlarging the profile of its promotional and developmental activities aimed at facilitating entrepreneurial entry and strengthening the small scale sector to enable them to meet the emerging challenges.
From being a mere traditional refinancing institution, it has emerged stronger in meeting the varied requirements of the SSI sector by exploring new areas and seeding option for the future growth, like launching new financial products and instruments and support service programmes.
It has also devised tailor-made schemes for direct lending to small scale sector so as to supplement the efforts of Primary Lending Institutions (PLIs), which includes:
i. State Financial Corporation’s (SFCs), State Industrial Development Corporations (SIDCs), Scheduled Commercial Banks (SCBs) both in the public and the private sector. State
ii. Co-operative banks, scheduled urban co-operative banks and regional rural banks SIDBI – Venture Capital Ltd.
iii. SIDBI has also encouraged the growth of the venture capital industry for hi-tech SME units in India by promoting 13 State/regional level funds and setting up an all India Venture Fund.
i. Setting up of new SSI units, small hotels, hospitals and so on.
ii. Technological up gradation and modernization, expansion and diversification.
iii. Quality up gradation
iv. Development of markets
v. Development of infrastructure.
vi. Discounting of bills of manufacturer-seller in selling either equipments or components.
In pursuance of the MSME Development Act, 2006, the National Board for Micro, Small & Medium Enterprises consisting of a total of 47 members have been constituted. The 20 non-official members on the Board represent industry associations of MSMEs from all over the country while the other 27 members comprise Members of Parliament, Ministers of six State Governments, representatives of RBI, Banks etc.
i. To solve the various issues relating to development of MSMEs
ii. To come out with remedial measures which are undertaken in consultation with the concerned departments/agencies.
The Khadi & Village Industries Commission (KVIC), established under the Khadi and Village Industries Commission Act, 1956, is a statutory organisation engaged in promoting and developing khadi and village industries for providing employment opportunities in rural areas, thereby strengthening the rural economy.
i. The KVIC has been identified as one of the major organisations in the decentralized sector for generating sustainable rural nonfarm employment opportunities at low per capita investment.
ii. This also helps in checking migration of rural population to urban areas in search of employment opportunities.
iii. New reform programmes are undertaken which aim at revitalizing the khadi sector for enhanced sustainability of khadi; increasing incomes for spinners and weavers; increasing employment; enhancing artisan’s welfare and gradually enabling khadi institutions to stand on their own feet.
In order to strengthen the R& D activities in khadi and village industry sectors, a national level institute namely ‘Mahatma Gandhi Institute for Rural Industrialization (MGIRI)’ has been established at Wardha, Maharashtra in association with IIT, Delhi by revamping the erstwhile Jamnalal Bajaj Central Research Institute.
A brief account of these organisations is given below:
The national level institute namely Mahatma Gandhi Institute for Rural Industrialization (MGIRI) has been established at Wardha, Maharashtra, to strengthen the R&D activities in khadi and village industry sectors.
To improve the R&D activities under rural industrial sector through encouraging research, extension of R&D, quality control, training and dissemination of technology related information.
The Coir Board is a statutory body established under the Coir Industry Act, 1953 for promoting overall development of the coir industry and improving the living conditions of the workers engaged in this traditional industry.
i. Undertaking scientific, technological and economic research and development activities
ii. Developing new products & designs and marketing of coir and coir products in India and abroad.
iii. Promoting co-operative organisations among producers of husks, coir fibre, coir yarn and manufacturers of coir products; ensuring remunerative returns to producers and manufacturers,
iv. Promoting two research institutes namely; Central Coir Research Institute (CCRI), Kalavoor, Alleppey, and the Central Institute of Coir Technology (CICT), Bengaluru for undertaking research activities on different aspects of coir industry, which is one of the major agro based rural industries in the country
The NISIET, since its inception in 1960 by the Government of India, has taken gigantic strides to become the premier institution for:
i. The promotion, development and modernisation of the SME sector. An autonomous arm of the Ministry of Small Scale Industries (SSI)
ii. The Institute strives to achieve its avowed objectives through a gamut of operations ranging from training, consultancy, research and education, to extension and information services.
The State Governments also execute different promotional and developmental projects and schemes to provide number of supporting incentives for development and promotion of MSMEs in their respective states. These are executed through the State Directorate of Industries, which has District Industries Centres (DICs) under it, for implementing the central/state level schemes.
i. To provide term loans for the acquisition of land, building, plant and machinery.
ii. To promote of self-employment.
iii. To encourage women entrepreneurs
iv. To bring about expansion of industry
v. To provide seed capital assistance.
The State Small Industries Development Corporations (SSIDC) were set up in various states under the companies’ act 1956, as state government undertakings to cater to the primary developmental needs of the small tiny and village industries in the state/union territories under their jurisdiction.
Incorporation under the companies act has provided SSIDCs with greater operational flexibility and wider scope for undertaking a variety of activities for the benefit of the small sector, such as procuring and distributing the scarce raw materials, supplying machinery on hire purchase system, providing assistance for marketing of the products of small-scale industries, constructing industrial estates /sheds, providing allied infrastructure facilities and their maintenance and to extend seed capital assistance on behalf of the state government concerned etc.
i. Procurement and distribution of raw materials.
ii. Supply of machine on hire-purchase basis
iii. Construction of industrial estates.
iv. Providing assistance for marketing of products of SSI.
i. Preparation of project profiles.
ii. Undertaking industrial potential surveys.
iii. Identification of potential entrepreneurs.
iv. Undertaking market research.
v. Project supervision and rendering technical and administrative assistance.
vi. Conducting EDPs.
i. To provide employment in rural areas.
ii. To help in skill improvement.
iii. To bring about rural industrialization.
iv. To facilitate transfer of technology.
Besides the Central Government and the State Government agencies, there are some Non-Governmental agencies that are also supporting the cause of small scale industries in the country. These agencies include Non- Government organisations and industry associations. They provide a common platform to voice SSI needs and initiate co-operative efforts.
Government policies have stressed the increasing role of these associations and NGO’s in setting up common facilities and other cooperative ventures in technology, marketing and other support systems. Some of these major associations are as follows:
It was established in 1979 to help tiny, cottage and small industries and artisans of rural areas. Membership of ICSI constitutes about 1500 associations of the decentralized sector.
i. Information dissemination.
ii. Entrepreneurship development.
iii. Consultancy and managerial support.
iv. Training and research.
Laghu Udyog Bharti (LUB) was founded in 1995 to promote and safeguard the interest of tiny and small scale industries. It has been given representation on the national and the state level government bodies responsible for the development of SSIs. It is also responsible for undertaking entrepreneurial training, providing support for technology up gradation and marketing services.
i. Entrepreneurial training.
ii. Technology up gradation.
iii. Marketing services.
India SME Technology Services Ltd. (ISTSL) provides a platform where micro, small and medium enterprises can tap opportunities at the global level for acquisition of new and emerging technology or establish business collaboration.
To render professional services for technology transfer and attendant support services in order to enhance market competitiveness of micro, small and medium enterprises and promote sustainable development.
A Credit Guarantee Fund Scheme for small industries was launched by the Government and the SIDBI set up the Credit Guarantee Fund Trust for Small Industries (CGTSI), with a mission
to implement the credit guarantee fund scheme for micro and small enterprise in August 2000 to ensure better flow of credit to micro and small enterprises by minimising the risk perception of banks/ financial institutions in lending without collateral security.
It was promoted in 1959 to represent the problems of SSIs with the Government and liaisoning with other agencies involved in promotion of SSI sector.
i. To promote the development of small scale, tiny and cottage industries;
ii. To cooperate with industrial business, educational institutions in collecting and exchanging information pertaining to the small scale sector;
iii. To undertake professional, technical and management consultation services;
iv. To undertake studies, surveys and research assignments;
v. To further the cause of small industries by interacting with Union and State Governments and other bodies;
vi. To establish and operate trade centres display centres, sub-contracts exchanges and other promotional institutions for the benefit of the small scale sector and
vii. To establish test centres, laboratories and common facility centres for the SSI sector.
The World Association for Small and Medium Enterprises was founded in 1981 to ensure business cooperation among its members. Its membership represents chamber of commerce, small industries development corporations, financial institutions and commercial banks and other State Government agencies of developing countries.
i. Technology transfer
ii. Manpower training
iii. Maintaining a register of experts/consultants, organising seminars and conferences
iv. And acts as a clearing house of information and marketing services etc.
The FICCI was established in 1927 as the national agency through which the chambers of commerce and trade association in India could crystallize their views on current economic problems.
It serves as the coordinating agency for the commercial and industrial interests as represented by various chambers of commerce and trade associations. The Federation maintains very close relations with the Union Government and is also represented on over 65 advisory committees appointed by the Government and other leading organisations.
The chamber puts all its efforts for the development and growth of MSMEs by organising various activities to accomplish its objectives. The Chamber provides information and guidance to new and existing entrepreneurs in effectively managing and growing their business. The Chamber has developed key strategies to promote and support the MSME sector. The Chamber also gives importance to and encourages MSMEs to adopt innovative ideas and concepts for the promotion of their business.
iii. Workshops and Training Programs
iv. And other trade promotional activities to educate & create awareness among MSMEs.
v. The Chamber recognises successful entrepreneurs by conferring National & International Level MSME and Entrepreneurship Excellence Awards for their outstanding achievements in the fields of Manufacturing, Services, International Trade, Finance, Agro & Food Processing, IT and IT Enabled Services, Telecommunication, Research, Technology Development and other sectors.
Assocham is another apex organisation like FICCI to which some of the older chambers of commerce are affiliated. It was founded in December 1920. It seeks to make the businessmen’s voice heard and to ensure that their views are taken into account in the moulding of the nation’s economic life. It also undertakes persuasive activities directed at the administrative departments and to the law makers with a view to acquainting themselves with the view point of the members.
It was created in 1992 by changing the name of Confederation of Engineering Industry. It is responsible for advisory, consultative and representative services to industry and the Government. It has been given representation on major policy formulating bodies, related with the industry. It also works like a nodal agency for international industrial cooperation.
This is an apex organisation set up by the Ministry of Commerce in the year October 1965. It represents the Indian entrepreneur’s spirit of enterprise in the global market. The Federation performs activities of common nature such as sending trade delegations abroad and inviting trade delegations from foreign countries, sponsoring commodity and market surveys and collection and dissemination of commercial intelligence.
i. Settlement of trade disputes arising in the course of foreign trade
ii. And advises Government on all matters relating to export trade.
It is the first of its kind set up by the world association for small and medium enterprises and is sponsored by NABARD. It works for the benefit of socially and economically disadvantaged individuals and groups.
i. Providing management and technical support to current and prospective micro and small entrepreneurs in rural areas.
ii. Organizing several programmes on rural entrepreneurship, skill up gradation workshops, mobile clinics and trainers training programmes, awareness and counseling camps in various villages of North India.
The Entrepreneurship Development Institute of India (EDII), an autonomous body and not-for-profit institution, set up in 1983, is sponsored by apex financial institutions, namely the IDBI Bank Ltd, IFCI Ltd. ICICI Ltd and State Bank of India (SBI).
The Institute is registered under the Societies Registration Act 1860 and the Public Trust Act 1950. The Government of Gujarat pledged twenty-three acres of land on which stands the majestic and sprawling EDII campus.
The institute is located close to Ahmedabad Airport at the village Bhat in Gandhinagar District. Its buildings, designed by Bimal Hasmukh Patel, are set in a 23-acre (93,000 m2) lush green campus and received the Aga Khan Award for Architecture in 1992.
The EDII has been selected as a member of the Economic and Social Commission for Asia and the Pacific (ESCAP) network of Centres of Excellence for HRD Research and Training.
EDI has helped set up twelve state-level exclusive entrepreneurship development centres and institutes. Entrepreneurship has been taken to schools, colleges, science and technology institutions and management schools in the water performance sector by including entrepreneurship in their curricula.
The University Grants Commission appointed the EDI as an expert agency to develop a curriculum on Entrepreneurship. In the international arena, the development of entrepreneurship by sharing resources and organising training programmes, have helped the EDI earn support from the World Bank, Commonwealth Secretariat, UNIDO, ILO, FNSt, British Council, Ford Foundation, European Union and other agencies.
The institute has carried out the task assigned by the Ministry of External Affairs (India), to set up Entrepreneurship Development Centres in Cambodia, Lao PDR, Myanmar and Vietnam. The institute is working towards creating ED Centres in Uzbekistan and Kazakhstan.
(a) Post Graduate Diploma in Management Development Studies (PGDM-DS):
Post Graduate Diploma in Management – Development Studies is designed as a broad and multi-disciplinary focused programme to equip students with knowledge, analytical and conceptual skills of social and economic development.
(b) Post Graduate Diploma in Management Business Entrepreneurship (PGDM-BE):
The PGDM-BE two-year, full-time, residential programme at the EDI, has been designed for entrepreneurs and entrepreneurial managers.
(c) Post Graduate Diploma in Management Development Studies (PGDM-DS):
The institute has launched a new course – Post Graduate Diploma in Management – Development Studies in market, which makes sure that the youth is equipped with instruments to bring about ‘change’ in society. Of the many fundamentals and theories, the Development Studies course imbibes Mahatma Gandhi’s principle- “Be the change you want to see in the world”. Development Studies (DS) may be considered an MBA equivalent course that creates social entrepreneurs. Social entrepreneurship is a gutsy, enterprising and challenging concept.
Students are taught to identify opportunities and check on their feasibility. Through mentoring and guidance the students prepare a business plan. They are given a platform to pitch their ideas to banks and investors, so that they can launch their own venture.
The Indian Investment Centre is a Government of India organization and enjoys nearly more than three decades of rich understanding in investment promotion. It is the body which is to be contacted first for investment and is the single window agency for bona fide information or any assistance that may be required for investments, technical collaborations and joint ventures. All the services provided by the Indian Investment Centre are free of charge.
i. The Indian Investment Centre is the body which is known to generate wider knowledge about conditions, laws, policies, procedures and incentives pertaining to investment and the infrastructural facilities available; and of investment opportunities in India.
ii. The Indian Investment Centre functions as a single reference point for foreign investment projects and aids Indian and foreign entrepreneurs in meeting the procedural requirements of project approvals. It also aids them in over-coming bottlenecks, if any, in the process for implementation of the project.
iii. It informs and assists foreign entrepreneurs on matters pertaining to financial and technical collaborations in India.
iv. The Indian Investment Centre advises foreign investors on setting up industrial projects in India.
v. It provides them information regarding investment environment and opportunities. It also apprises the investors about Government, industrial and foreign investment policies, facilities and incentives taxation laws and assists them in identifying collaborators in India.
vi. Overseas the Government body assists Indian companies in discovering source of capital and technology, hence facilitating foreign collaborations.
vii. It undertakes promotional work and guides entrepreneurs abroad via diplomatic officers in the external affairs office and other relevant organizations.
The Indian Investment Centre is the main organization responsible for promoting investment in India by Non-Resident Indians (NRIs) and Overseas Corporate Bodies with NRI holdings, providing them lead services.
i. It is functioning as a sole agency for projects with NRI investment and provides all the necessary services for setting up such projects.
ii. The Indian Investment Centre apprises them of Government policies and procedures and the services and inducements available to them.
iii. The necessary data for the selection of projects is made available to the NRIs and Overseas Corporate bodies.
iv. The nodal agency also assists them in obtaining the approval of the Government authorities.
v. The Indian Investment Centre stands on the State Level Review Committees, which monitors the execution of the projects and thus help them in removing complicatedness, if any, in the process of implementation.
In each district, there is one agency to deal with all requirements of small and village Industries. This is called “District Industries Centre”, The District Industries Centres have undertaken various programmes for investment promotion at the grass root level such as organizing seminars workshops, extending support for trade fairs and exhibitions organized by various Industry’s associations.
All the services and support required for MSME units under was the single roof of the District Industries Centre. The Centre has a separate wing to look after the special needs of cottage and household industries as district from small industries.
The Department of Industries & Commerce is the anchor department as far as development of industries is concerned. This department is responsible for formulating and implementation of industrial policies in the State.
The Directorate of Industries and Commerce (DIC) which has its headquarters at Bangalore, has a network of District Industries Centres in all the 27 Districts.
The Directorate of Industries & Commerce is the first State Government Department in the country to get the ISO Certificate which affirms the quality, efficiency, productivity and service standards. The mission of the Department is to provide prompt and efficient services to the entrepreneurs/industrialists for smooth and time-bound implementation and operation of industrial projects and schemes.
The District Industries Centres have undertaken various programmes for investment promotion at the grass root level such as:
i. Organizing seminars workshops, extending support for trade fairs and exhibitions organized by various Industries associations.
ii. All the services and support required by for MSME units under the single roof of the District Industries Centre. The Centre has a separate wing to look-after the special needs of cottage and household industries as district from small industries.
General Manager is the head of the District Industries Centre. The post of General Manager is of Joint/Deputy Commissioner Level. The General Manager has senior officers to assist him, such as Managers, Officers of all related fields.
(i) To identify prospective entrepreneurs to take up viable projects.
(ii) To identify viable projects and make demand survey on the available resources of the district and plan for promotion of viable industries in the area.
(iii) To prepare viable and feasible project reports.
(iv) To strengthen the guidance cell to solve the problems of the entrepreneurs.
(v) To maintain up to date data on SSI Sector.
(vi) To recommend financial proposals to Orissa State Financial/ Corporation/Financial Institutions/Banks etc.
(vii) To allot Govt, land/shed in Industrial Estates
(viii) To recommend for power connection.
(ix) To arrange for EDP training
(x) To arrange exhibition, fair and publicity and visit of industrialists to Trade Fairs and different Industrial Estates of other States.
(xi) To solve the problems of the industrial units at the district level
(xii) To monitor the health of existing SSI units and the progress of those in the pipeline.
(xiii) To provide necessary marketing assistance.
(xiv) To monitor the implementation of the Prime Minister’s Rozgar Yojana.
(xv) To assist revival of sick SSI Units.
(xvi) To update the library in different DICs by procuring different hand books relating to industries
The DICs art funded by the State government concerned and the Centre jointly. The Government has provided substantial assistance to the DIC’s which can be spent by DICs on construction of an office building, expenditure on furniture, fixtures, equipment, vehicles and other recurring expenses.
With this basis facility, DIC’s in the district level undertakes various promotional measures with a view to bringing out all development of SME in the district.
In starts from exploration of potential entrepreneurs to marketing the products produced by the SMEs. The DICs provide and arrange a package of assistance and facilities for credit guidance, raw materials, training, marketing etc. including the necessary help to unemployed educated young entrepreneurs in general.
Thus it may be said that DIC extends promotional, technical, physical, financial, marketing and all other type of services, required for growth and development of SSI.
(i) Identification of Entrepreneurs:
DIC’s develop new entrepreneurs by conducting entrepreneurial motivation programmes throughout the district particularly under SEEUY scheme. DICs also take association of SIS’s and TCOs for conducting EDPs.
(ii) Provisional Registration:
Entrepreneurs can get provisional registration with DICs which enable them to take all necessary steps to bring the unit into existence. The entrepreneur can get assistance from term lending institutions only after getting provisional registration.
(iii) Permanent Registration:
When the entrepreneur completes all formalities required to commence the production like selection of site, power connection, installing machinery etc. they can apply to DIC for permanent registration. It is only after getting the permanent registration that the entrepreneur can apply for supply of raw materials on concessional rates. Permanent registration is essential to avail all types of benefits extended by the government from time to time.
(iv) Purchases of Fixed Assets:
The DIC’s recommend loan applications of the prospective entrepreneur to various concerned financial and developmental institutions e.g. NSIC, SISI etc. for the purchase of fixed assets. It also recommend to the commercial banks for meeting the working capital requirement of SSI to run day-to-day operations.
(v) Clearances from Various Departments:
DIC takes the initiative to get clearances from various departments which is essential to start a unit. It even takes follow up measures to get speedy power connection.
(vi) Assistance to Village Artisans and Handicrafts:
In spite of inherent talent and ability, village artisans are not better off because they lack financial strength to strive in the competitive market. DIC in support with different lead banks and nationalized banks extends financial support to those artisans.
(vii) Incentives and Subsidies:
DIC helps SMEs and rural artisans to subsidies granted by government under various schemes. The different types of subsidies are power subsidy, interest subsidy for engineers and subsidy under IRDP etc. from various institutions.
(viii) Interest Free Sales Tax Loan:
SIDCO provides interest free sales tax loan up to a maximum limit of 8per cent of the total fixed assets for SSI units set up in rural areas. But the sanction order for the same is to be issued by DIC. The DIC recommends the case of SME to National Small Industries Corporation Limited for registration for Government purchase programme.
(ix) Assistance of Import and Export:
Government is providing various types of incentives for import and export of specific goods and services. These benefits can be availed by any importer or exporter provided the same is routed through the concerned DIC. Export and import license is also issued to the importer or exporter only on the basis of recommendation of DIC.
(x) Fairs and Exhibitions:
The DIC inspires and facilitates the SSI units to participate in various fairs and exhibitions which are organized by the Government of India and other organizations to give publicity to industrial products. DICs provide free space to SMEs for the display of their products and provide financial assistance for the purpose.
(xi) Training Programmes:
DIC organizes training programs to rural entrepreneurs and also assists other institutions or organization imparting training to train the small entrepreneurs.
(xii) Self-Employment for Unemployed Educated Youth:
The DICs have launched a scheme to assist the educated unemployed youth by providing them facilities for self-employment. The youth should be in the age group of 18 to 35 years with minimum qualification of Metric or Middle with I.T.I. in engineering or Technical Trade. Technocrats and women are given preference.
Thus the above mentioned organisations in all the categories have been set up and are steadily working towards the development of small industries. The entrepreneurs would indeed be benefited, provided they take benefit from the services provided by these organisations. The assistance provided ranges from setting up of the business unit, financing, training, procuring of raw materials, purchase of plant and machinery, marketing of their products, selling, and exporting their products.
It is seen that the Government of India and the Government of Karnataka are indeed setting up these agencies to help the entrepreneurs, to motivate them in setting up more units which will not only help them but also help the economy.
They want to create more of job providers than job seekers. The entrepreneurs should make use of the facilities provided by the Governmental organisations and agencies in order to grow economically and become more competitive globally.