Management & Entrepreneurship

Module – 4
Mr. Mahesh M
Topics to be covered
 Institutional Support
 Different Schemes, TECKSOK, KIADB
 KSSIDC, KSIMC, DIC single window agency SISI
 NSIC
 SIDBI
 KSFC
Supporting Agencies of Government for
SSI MSME Technology
MSME
Development Development
MSME Institutes Centres MSME Testing
Development Centres & Testing
Organization Stations

MSME
Board Central Government Coir Board

MSME Tool
Rooms
National Small
Industries Entrepreneurship
Corporation Khadi & Village Development
Industries SIDBI Institutes
Commission
 Commissioner/Director
of Industries
Technical
Consultancy State Governments
Organization

District
Industries
State Small Centers
Industries
Development
Corporations State Financial
Corporations
Promotional Measures
The small scale industry sector output contributes almost 40% of the
gross industrial value added, 45% of the total exports from India and is
the second largest employer of human resources after agriculture. In
order to protect, support and promote small enterprises, a number of
protective and promotional measures have been undertaken by the
government, which cover the following :
 Industrial extension services
 Institutional support in respect of credit facilities
 Provision of developed sites for construction of sheds
 Provision of training facilities
 Supply of machinery on hire-purchase terms
 Assistance for domestic marketing as well as exports
 Special incentive for setting up enterprise in backward areas
 Technical consultancy and financial assistance for technological
upgradation.
NSIC (National Small Industries
Corporation)
 Establishment – 1955
 Mission of promoting, aiding and fostering the growth of small
scale industries in the country.
 Proved its strength within the country and abroad by Promoting
modernization, upgradation of technology, quality consciousness,
strengthening linkages with large and medium enterprises and
enhancing exports
 Operates through 9 zonal offices, 33 branch offices, 14 sub
offices, 10 NSIC business centers and 2 software technology parks
supported by a team of over 500 professionals.
 Schemes comprise of facilitating marketing support, credit
support, technology support and other support services.
SERVICES OF NSIC

 1. Single point registration: Registration under this scheme for

participating in government and public sector undertaking tenders.
 2. Information service: NSIC continuously gets updated with the latest
specific information on business leads, technology and policy issues.
 3. Raw material assistance: NSIC fulfils raw material requirements of
small-scale industries and provides raw material on convenient and
flexible terms.
 4. Meeting credit needs of SSI: NSIC facilitate sanctions of term loan
and working capital credit limit of small enterprise from banks.
 5. Performance and credit rating: NSIC gives credit rating by
international agencies subsidized for small enterprises up to 75% to get
better credit terms from banks and export orders from foreign buyers.
SIDBI (Small Industries development bank
of India)
 For ensuring larger flow of financial and non-financial assistance
to the small scale sector, the government of India set up the Small
Industries Development Bank of India (SIDBI) under Special Act
of Parliament in 1989 as a wholly owned subsidiary of the IDBI.
 Principal development financial institution for promotion,
financing and development of industries in the small scale sector
and for coordinating the functions of other institutions engaged in
similar activities.
 Mission to empower the MSME sector with a view to contribute
to the process of economic growth, employment generation and
balanced regional development.
Functions of SIDBI
The important functions of SIDBI are as follows:
 (1) To initiate steps for technological upgradation and
modernization of existing units.
 (2) To expand the channels for marketing the products of SSI
sector in domestic and international markets.
 (3) To promote employment oriented industries especially in
semi-urban areas to create more employment opportunities and
thereby checking migration of people to urban areas.
 (4)Indirect Finance – Refinance scheme is used for catering to the
need of funds of eligible primary lending institutions (PLIs) like
state financial corporation, state industrial development
corporations, scheduled commercial banks both in the public and
private sector for financing small scale industries.
 (5) Direct Finance – Through 38 of SIDBI’s own offices by means
of several tailor-made schemes to provide financial assistance to
specific SSI target groups.
 (6) Promotional and developmental activities – Activities like
human resource development in SSI sector, technology
upgradation, programmes on environment and quality
management, market promotion, information dissemination etc
are performed by SIDBI.
SISI (Small Industries Service Institutes)
There are 30 MSME development institutes (formerly Small Industries
Service institutes, SISI). Main functions:
 Assistance/consultancy to prospective entrepreneurs.
 Assistance/consultancy rendered to existing units
 Preparation of state industrial profiles
 Preparation/updation of district industrial potential surveys.
 Project profiles.
 Entrepreneurship development programmes
 Motivational campaigns
 Production Index
 Management development programmes
 Energy conservation
 Pollution control
 Quality control and upgradation
 Export Promotion
 Ancillary development
 Common facility workshop/labs
 Preparation of directory of specific industry
 Intensive technical assistance
 Coordination with district industries centres.
 Linkage with state governement functionaries
 Market surveys.
TECSOK (Technical Consultancy Services
Organization of Karnataka)
Established in the year 1976 by the Government of Karnataka.
Primary objective of founding TECSOK was to provide reliable
consultancy support for entrepreneurs to start up self-
employment ventures in Karnataka.
Functions :
Package of services include:
1. Location-specific identification of investment opportunities.
2. Assistance in obtaining statutory and procedural clearances
3. Feasibility studies and environment impact studies.
4. Preparation of detailed project reports as per investment
norms and financial norms.
 Market survey and research
 Project implementation and turnkey assistance.
 Reorganization and restructuring of enterprises.
 Valuation of assets, manpower planning and budgetary control system.
 Energy management and audit, corporate plan, technology transfer
 Diagnostic studies and rehabilitation of sick industries.
 Management studies, company formation, corporate plan, enterprise
restructuring.
 Consultancy for mergers/takeovers.
 Designing and organising training programs.
 Consultancy for agro-based industries as a Nodal Agency of
Government of India.
 Infrastructure development projects.
TECSOK undertake the assignment in the field of
● Technical and market appraisal of projects.
● Industrial potential surveys.
● Fact-finding and opinion reports.
● Corporate planning.
● Collection and collation of information.
● Impact assessment.
● Evaluation of schemes and programmes.
● Asset evaluation.
● Infrastructure development project proposal.
● Event management and publicity campaigns, and
● Organizing seminar and workshops.

TECSOK has over 25 well-experienced engineers in different disciplines,

MBAs,economists and finance professionals. TECSOK has an exclusive women’s cell
which conducts training and education programmes, exhibitions for promotion of
products and services provided by women entrepreneurs and offers escort services to
women entrepreneur. TECSOK has many publications. “KaigarikaVarthe” a monthly is
published by TECSOK. In addition it publishes “Guide to Entrepreneurs” “Directory
of Industries” on a regular basis.
Focused Consultancy Areas of TECSOK
 Promotion of agro based industries:TECSOK is recognized nodal
agency by the Ministry of Food Processing Industries, Government of
India, for project proposal to avail grant and loan assistance under the
special schemes.
 Energy management and audit:Thrust is given to use non-
conventional energy sources for which both state and central
governments are offering incentives. TECSOK has been recognized as
a body to undertake energy audit and suggest energy conservation
measures. TECSOK undertakes studies and project proposal for
availing assistance from the Indian Renewable Energy Development
Authority (IREDA).
 Environment and ecology:TECSOK undertakes assignments
relating to environment education, environment impact assessment,
environment management plan and pollution control measures.
TECSOK has joined hands with Karnataka cleaner production center
(KCPC) to provide total consultancy support in the area of
environment.
KSIIDC (Karnataka state industrial
investment and development corporation)
 Established in 1964.
 Greatly instrumental in the industrialization of the State, esp. large and medium
sector.
 Functions:
1. Assisted 135 start-up ventures through equity participation to the extent of
Rs 118.28 crores spread over the length and breadth of the State..
2. Extended financial assistance in the form of debt to core sector industries
like steel, cement, mining and textiles and modern sector industries like
information technology, aviation, telecommunications and other
infrastructure projects.
3. Instrumental in Establishing JSW Ltd, Vikrant Tyres ltd, Karnataka
Antibiotics and Pharmaceuticals Ltd.
4. Persistent efforts aided in Realizing the dream of setting up the country’s
first green field international Airport at Devanahalli on public private sector
partnership.
KSSIDC (Karnataka State Small Industries
Development Corporations
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.
The important functions performed by the SSIDCs include:
● To procure and distribute scarce raw materials.
● To supply machinery on hire purchase system.
● To provide assistance for marketing of the products of small-scale industries.
● To construct industrial estates/sheds, providing allied infrastructure facilities and their
maintenance.
● To extend seed capital assistance on behalf of the state government concerned provide
management assistance to production units.
DIC (District industries centers)

The District Industries Centers (DIC’s) programme was started in

1978 with a view to provide integrated administrative
framework at the district level for promotion of small scale
industries in rural areas. The DIC’s are envisaged as a single
window interacting agency at the district level providing service
and support to small entrepreneurs under a single roof. DIC’s
are the implementing arm of the central and state governments
of the various schemes and programmes. Registration of small
industries is done at the district industries centre and PMRY
(Pradhan Mantri RojgarYojana) is also implemented by DIC.
The main functions of DIC are:
 (1) To prepare action plan to implement the schemes effectively already identified.
 (2) To undertake industrial potential survey and to identify the types of feasible
ventures which can be taken up in ISB sector, i.e., industrial sector, service sector and
business sector.
 (3) To guide entrepreneurs in matters relating to selecting the most appropriate
machinery and equipment, sources of it supply and procedure for importing
machineries.
 (4) To provide guidance for appropriate loan amount and documentation.
 (5) To assist entrepreneurs for availing land and shed equipment and tools, furniture
and fixtures.
 (6) To appraise the worthness of the project-proposals received from entrepreneurs.
 (7) To help the entrepreneurs in obtaining required licenses/permits/clearance.
 (8) To assist the entrepreneurs in marketing their products and assess the possibilities
of ancillarization.
 (9) To conduct product development work appropriate to small industry.
 (10) To help the entrepreneurs in clarifying their doubts about the matters of
operation of bank accounts, submission of monthly, quarterly and annual returns to
government departments.
 (11) To conduct artisan training programme.
 (12) To act as the nodal agency for the district for implementing PMRY (Prime
Minister RojgarYojana)
KSFC (Karnataka State Financial
Corporations)
State-level financial institution, operating as regional development
bank and playing a crucial role in the development of small and
medium enterprises in the state. There are 18 SFCs in the country.
One of the fast-track term lending financial institution in the
country, with assistance to more than 1,59,225 units amounting to
nearly Rs. 8,537 crore over the last 49 years in Karnataka. It is
one of the robust and professionally managed state financial
corporations.
Functions:
Provides term loans for establishment of new Tiny/SSI/MSI/service
units and for expansion/modernization/diversification of existing
units.
KSFC extends lease financial assistance and hire purchase assistance
for acquisition of machinery/equipment/transport vehicles. KSFC
has merchant banking department which takes up the
management of public issues underwriting at shores, project
report preparation, deferred payment guarantee, and syndication
of loans, bill discounting and similar tasks.
KSFC give preference to the projects which are
(i) Promoted by technician entrepreneur.
(ii) In the small-scale sector.
(iii) Located in growth centers and developing areas of the state;
(iv) Promoted by entrepreneurs belonging to scheduled castes and
scheduled tribes, backward classes and other weaker sections of
society.
(v) Characterized by high employment potential.
(vi) Capable of utilizing local resources; and
(vii) In tune with the declared national priorities.
The eligible industrial concerns for financial assistance from KSFC
are those engaged/to be engaged in manufacture, preservation,
processing of goods, mining, power generation transport,
industrial estate, hotels, R & D of any product or process of
industrial concern, weigh bridge facilities, power laundries,
photocopying, hiring of heavy material handling equipment,
cranes and other earth moving equipments, hospitals, nursing
homes, medical stores, computers, tourism related activities,
construction of roads, tissue and horticulture software
development, software parks, block board vehicles, office
construction, go down and warehouse construction, mobile
canteens, commercial complexes, training institutes, office
automation and so on.
Karnataka Industrial areas development
board (KIADB)
 Engaged in acquiring and developing industrial lands in different
industrial areas.
 In case the investor desires, KIADB acquires land in specific
location of investor’s choice and develops the land if required, at
entrepreneur’s cost.
 KIADB industrial lands are generally of ready to occupy condition
with all basic infrastructure facilities.
 Allots the land on lease-cum-sale basis and the period of lease is
10 years.
 Allottees are required to construct the factory and other buildings
within a specified time frame and as per the plan approved by the
Directorate of Factories and Boilers.
Different Schemes
 Credit Guarantee Fund Scheme for MSE – Launched by
the Government of India to make available collateral free credit
to the MSE sector.
 Formally launched on 30 August 2000 and is operational with
effect from 1 January 2000.
 Corpus is being contributed by the Government and SIDBI in the
ratio of 4:1 respectively and has contributed Rs 1584.05 crore to
the corpus of the Trust up to 30 June 2008.
 ISO 9000/ISO 14001 Certification Reimbursement
Scheme – In order to enhance the competitive strength of
the small scale sector, the Government introduced an
incentive scheme for their Technological upgradation, quality
improvement and environment management.
 Operational since March 1994.
 This is an incentive scheme of reimbursement of expenses for
acquiring Quality Management System ISO 9000
certification/ Environment Management Certification.
 Reimbursement to the extent of 75% of expenditure or Rs
75000, whichever is lower.
 Scheme is valid up to 31 March 2012.
Market Development Assistance
Scheme
 Offers funding up to 90% in respect of to-and-fro air fare for
participation by MSME entrepreneurs in overseas fairs and
trade delegations.
 The scheme also provides for funding for producing publicity
material (upto 25% of costs), sector specific studies (upto Rs
2 lakh), and for contesting antidumping cases (50%, upto Rs
1 lakh).
Thank You