INCENTIVE AND INFRASTRUCTURE SUPPORT FROM CENTRAL AND STATE

GOVT

CENTRAL LEVEL INSTITUTIONS

1) SSI Board:• Was constituted on 1954 to facilitate the coordination and inter

institutional linkage for the development of the SSI sector .• The board is apex advisory body constituted to render advice

to the GOVT on all SSI sector issues. • The board broadly operates in the following areas

a) Policies and programs b) Development of industries in a specific region such as the

north eastc) Ancillary development , quality improvement and mktg

assistance d) Credit facilities ,taxation and modernizatione) Industrial sickness

KVIC

• Is the statutory body created by an act of parliament(1956 and 1987)

• It serves for planning ,promotion , organization and implementation o the prog for the development of khadi and other village industries in the rural areas in coordination with other agencies engaged in rural development .

• KVIC ensures supply of raw materials to producers , creation of common service facilities for raw mtrl processing ,mktg KVIC products ,organizing training sessions for artisans

• Financial assistance to institutions or persons working for the development of KVI and assisting them through supply of design prototype and other technical information.

• Objective of KVIC • “ The social objective of providing employment.

The economic objective of producing saleable articles. The wider objective of creating self-reliance amongst the poor and building up of a strong rural community spirit”.

SIDO

• Office of development commissioner is also known as SIDO ,acts as nodal development agency for SSI

• It has over 60 offices and 21 autonomous bodies under its MGT and these bodies include tool rooms ,training institutions, project cum process development centers

• It also provides economic information and advices the GOVT in policy formulation for the promotion and development of SSI

• SIDO provides all its services through a network of SISIs , regional testing centers ,product and process development centers etc.

SIDO is the main office and assisting 30 network SISIs and 28 branch SISI,4 regional testing centers,7 field testing stations ,tool rooms , tool design institutes etc .

SISI

• Are operational throughout the country and the office of the DC(SSI) oversees their respective performance.• The main functions performed by SISI are:

a) Interface between state and central GOVTb) Technical support services and consultancy

servicesc) Entrepreneurship development programsd) Developmental efforts , promotional programse) Export promotion and liaison activitiesf) Ancillary development

SUBCONTRACTING EXCHANGES FOR ANCILLARY DEVELOPMENT

• Under the programme of ancillary development, sub-contracting Exchanges have been set up.

• What is a subcontracting Exchange :

A Sub-contracting Exchange is a Store House of Data with regard to the capacities of the small- scale units in terms of products manufactured/services rendered, idle capacities available on particular processes/machines on one hand and storing data with regard to the requirements of the buyers which could be product/components/sub assemblies/services. The exchange also stores data about the specifications, class of accuracy, quantities, etc. in the above cases.

a) The main objectives of these Sub-contracting Exchanges are: b) To register capacities of manufacturing or services available with the small scale and tiny units. c) To obtain details of items required regularly by other large units which can be manufactured in the small scale sector. d) To arrange Buyer-Seller Meet/Vendor Development Programmes so as to display the items/products required by large undertakings/organizations and to discuss the specifications and other requirements with the small scale units participants in such meets.

(RTCS )REGIONAL TESTING CENTERS

• 4 RTCs at Chennai, New Delhi , Mumbai and Calcutta • These centers are equipped with modern

machinery and equipment's for testing mechanical, chemical and electrical products.• 8 field testing stations are provided for testing

services to SSI in different product lines and are located at Dehradun ,Jaipur ,Bhopal ,Kolhapur ,Bangalore, Hyderabad , Pondicherry and Changanacherry .

SMALL ENTREPRENEURS PROMOTION AND TRAINING INSTITUTE (SEPTI)

• The erstwhile production center for electronic motors was renewed as small entrepreneurs production and training institute Tiruvalla during 1992 -93 with a view to conduct specialized skill oriented entrepreneurship development program for educated unemployed youths.• Since from its inception institute is conducting

skill oriented EDP’s in various trades .• Apart from these the center has also introduced

certain education courses .

HTI PROGRAM OBJECTIVES

• Technology up gradation of hand tool SSI clusters at Jalandhar and Nagpur by adopting energy efficient and clean technology

• Strengthening of institutional structure and capacity building

• Strengthening of policy frame work to promote replication of energy efficient technologies demonstrated

• Developing an international marketing strategy and support measures for export promotions to enhance the export share of SSI units in the world market

SEPTI

• Conducts specialized skill oriented entrepreneurship development programs for educated unemployed youths• Institute is equipped with developed technologies • The institute generally conducts 16 EDPs in

2phases every year

TR/TDI

• These form a heart of the ENGG industry • SIDO provides overseas assistance from various

countries• Initially these tool rooms were located at few cities

The activities of the TR/TDI are :

• Designing /manufacturing • Providing services facilities • Training tool and die makers• Organizing short term courses for ED

CFTIS

• These supports SSI units in Leather and footwear industries at Agra , Chennai , Kolkata , Mumbai• Objectives : a) training manpower for the

footwear industryb) Developing new designs and new types of footwear to promote export.

PPDCS

• 6 PPDCs have been established • Functions of PPDCs are :

a) To serve R and D b) Product design and innovation c) Developing new process and upgrade the

existing level of technology d) Technical support e) Manpower development and training

SIDO

• Entrepreneurship development and MGT training • Extension and training services• Skill development• Entrepreneurial development institutes• Preparation of project profiles• Plant modernization studies• Marketing support• Collection of data• Prime minister’s Rozgar Yogna • National awards

SIDO SCHEMES

• Credit linked capital subsidy scheme for technology up gradation

• Credit guarantee scheme• ISO 9000 14001 certification reimbursement scheme• Full subsidy on space rent and shipment • Govt purchases • Integrated infrastructure development • Mini tool rooms • Assistance to set up testing centers • Funding up to 90% in respect of to and from airfare for

participation by SSI in overseas fairs /trade delegations and 25% of cost for publicity

• For strengthening training infrastructure in EDIs, assistance up to 50% or 50 lakh which ever is less .

NSIC

• National Small Industries Corporation Ltd. (NSIC), established in 1955, by GOVT of India.

• Over a period of five decades of evolution, growth and development, NSIC has proved its strength within the country and abroad by promoting modernization, up gradation of technology, quality consciousness, strengthening linkages with large medium enterprises and enhancing exports - projects and products from small industries.

• NSIC operates through more than 120 offices, supported by a team of over 500 professionals spread across the country.

SERVICES PROVIDED BY NSIC ARE AS FOLLOWS

• Machinery and equipment ( hire purchase scheme) • Lease schemes• Financial assistance schemes• Assistance for procurement of raw-mtrl• Marketing assistance • GOVT store purchase prog• Technology transfer center

• Exhibitions and Technology Fairs: To showcase the competencies of Indian SSIs and to capture market opportunities, NSIC participates in International and National Exhibitions and Trade Fairs every year. NSIC facilitates the participation of the small enterprises by providing concessions in rental etc. Participation in these events exposes SSI units to international practices and enhances their business ability.

• Buyer-Seller meets: Bulk and departmental buyers such as the Railways, Defense, Communication departments and large companies are invited to participate in buyer-seller meets to enrich SSI unit's knowledge regarding terms and conditions, quality standards, etc required by the buyer. These programs are aimed at vendor development from SSI units for the bulk manufacturers.

• Export of Products and Projects: NSIC is a recognized Export House and exporting products and projects of small industries of India to other countries.

• The major areas of operation are: a) Export of products such as handicrafts, leather items, hand tools,

pipes/fittings, builders hardware etc.

b) Supply of Small Industry projects .

• Financing for Marketing Activities (Short term)NSIC facilitates financing for marketing actives such as Internal Marketing, Exports and Bill Discounting.

Finance through support with BanksIn order to ensure smooth credit flow to small enterprises, NSIC is entering into strategic alliances with commercial banks to facilitate long term / working capital financing of the small enterprises across the country. The arrangement predicts forwarding of loan applications of the interested small enterprises by NSIC to the banks and sharing the processing fee.

Membership Benefits

•Tender & Trade Information.

•Banner display on NSIC Website

•Access to a wide range of technologies from India and abroad.

•Access to national and international business leads, opportunities and trade information.

•Comprehensive information on Government policies, rules and regulations, schemes and incentives.

•Access to industrial databases and member's directory.

•Various value added, specialized services for members of Informediary Service.

Software Technology ParksNSIC Software Technology Parks (STPs) facilitate small industries in setting up 100% export-oriented units for software exports. They also act as nodal point to activate software exports directly through NSIC. These STPs extend support in terms of the requisite infrastructure to the SSI units to start business operations with a minimum lead time . The scheme is governed by STPI regulations of the Ministry of Information Technology, Government of India. NSIC established the first STP at Okhla , New Delhi in 1995 and second in Chennai in 2001. Several small scale units have taken advantage of these parks and contributed to export earnings .

International Consultancy Services• For the last 4 decades, NSIC has acquired various skill sets in

the development process of small enterprises. The inherent skills are being networked to offer consultancy services for other developing countries. This activity has been started during 2004-05 and is expected to occupy a place in the future service profile of the Corporation.

The areas of consultancy are as listed below: • 1.Capacity Building • 2.Policy & Institutional Framework • 3.Entrepreneurship Development • 4.Business Development Services • Insurance of Export Credit for Micro and Small Enterprises• NSIC is facilitating micro and small enterprises to insure their

export credits by entering into strategic alliance with Export Credit Guarantee Corporation of India Limited (ECGC). MSEs would be helped in insuring their export credits through any office of the Corporation, located all over the country. This arrangement is made to strengthen promotion of exports from small enterprises.

Inform diary ServicesInformation today is becoming almost as vital as the air we breathe. We need it every minute of our working lives. With increase in competition and melting away of international boundaries, the demand for information is reaching new heights. NSIC, realizing the needs of MSMEs, is offering Infomediary Services which is a one-stop, one-window bunch of aids that will provide information on business, technology and finance .

NPC

• “NPC is a national level organization under the Ministry of Commerce and Industry, Government of India, providing training, consultancy and undertaking research in the area of productivity. It also promotes enhancement of  productivity culture in the Nation.  NPC also implements the productivity promotion plans and programs of the Tokyo based Asian Productivity Organization (APO), an inter-governmental body of which the Government of India is a founder member.”

Mission NPC Vision • Development, Dissemination and Application of knowledge and experience

in productivity, for promoting consciousness and improvement in productivity, with the objective of strengthening the performance and competitiveness of the national economy as well as of improving the working conditions and quality of working life.

Objectives • NPC is aiming to promote the cause of productivity in

industry, agriculture, service, infrastructure and other sectors of the economy. It aims to help in achieving sustained all round development in India, leading to enhancement of quality of life of people in general. The concept of productivity as perceived by NPC encompasses not only a more efficient use of resources, but also of quality, environmental protection and integrated economic and social development. NPC aims at promoting these as a part of its objectives and activities.

• NPC is active in he field of consultancy and training and has a no of specialized divisions to provide tailor made solutions to agriculture and industry .

• Providing consultancy with issues related to industrial Engg,plant Engg , HRD,agricultural etc

• NPC takes sensitive assignments like manpower assessment , wage fixation,time and motion study etc

• NPC also coordinates the Annual productivity awards instituted by the Ministery of industryof Agriculture for various sub sectors of the economy.

NISIET

• National institute for small industry extension and training set up in the early 1950 in Hyderabad ,offering different training sessions to entrepreneurs ,managers various development functionaries of state GOVT , financial institutions and other agencies .

• This institute acts as a resource and information centers for SSI and undertakes research and consultancy services

• Every year institute organizes about 45 national level 15 international level progms every year.

• The institute strive to achieve its stated objectives through a range of operations ranging from training , consultancy ,research and education to extension and information services .

• Various institute have been established to promote SSI and providing training sessions to upgrade SSI performance.

IIE

• Indian Institute of Entrepreneurship• With an aim to provide training ,research ,consultancy

services to entrepreneurs this institute was established in the year 1993 at Guwahati by the ministry of SSI .

• Direction will be provided by its board of MGT whose chairman is secretary to the GOVT of India ,ministry of SSI, chairman ,GOVT of India head the executive committee .

OBJECTIVES OF IIE

• To organize and conduct training for entrepreneurship development • To evolve strategies and methodologies for different target group and

locations and conduct field tests• To identify training needs and offer training progms to GOVT and non –govt

organizations engaged in promoting and supporting entrepreneurship.• To document and disseminate information needed for policy formulation and

implementation related to self employment.• To identify ,design and conduct training progms for existing entrepreneurs• To prepare and publish literature related to entrepreneurship and industrial

development • To organize seminars , workshops and confer conferences for providing a

forum for interaction and exchange of views by various agencies and entrepreneurs

• To conduct research for generating knowledge to accelerate the process of entrepreneurship development

• To act as a catalyst for development of self employment /entrepreneurship , industry/business

EDII

• Entrepreneurship development institute of India • Ahmedabad ,is an autonomous non profit

institution,set up in 1983 ,sponsored by financial institutions such as industrial development bank of India ,industrial finance corporation of India ,ICICI and SBI and even GOVT of Gujarat .

OBJECTIVES OF EDII

• Augment the supply of trained entrepreneurs through training• Generate a multiplier effec on opportunities for self employment • Improve managerial capabilities of small scale industries • Contribute to the dispersal of business ownership and thus

expand the social base of the Indian entrepreneurial class • Contribute to the creation and dissemination of new knowledge

and insight into entrepreneurial theory and practice through reserch

• Augment the supply of trainer motivators for entrepreneurship development

• Participate micro entreprises at the rural level• Inculcate the spirit of entrpreneurship amongst youth • Collaborate with similar organizations in India and other

developing countries o accomplish the above objectives

STATE LEVEL INSTITUTIONS

• Dis: Directorate of industries : at the state level , the commissioner/director of industries implements policies for the promotion and development of small scale ,cottage ,medium and large scale industries • Each state evolves its own policy and package of

incentives

DISTRICT INDUSTRIES CENTERS

• The concept of District Industries Center came during the year 1977, when Government of India announced the new Industrial policy on 23.12.1977. It laid special stress on the development of Small Scale, Village and Cottage Industries and indicated that the "District Industries Centre" would be the main focus agency for promotion of small scale, village and cottage industries. In each district, one agency was created to deal with all requirements of small and village industries.

• DICs were established with an aim to promote rural and backward areas and provide support facilities /concessions/services in widely dispersed rural areas and other small towns .

• There were 430 DICs

• Dic : FUNCTIONS AT DISTRICT LEVEL • Joint Director is the head of the District

Industries Centre. The post of Joint Director is of the rank of Special Deputy Commissioner (Revenue). The Joint Director is assisted by Deputy Director/ Assistant Director, Industrial Promotion Officer and Industrial Extension Officer at taluk level. • Monitoring of DICs • The functions and activities are monitored by the

Directorate of Industries and Commerce.

DICS EXTEND SERVICES OF THE FOLLOWING NATURE

• Economic investigation of local resources • Supply of machinery and equipment • Provision of raw material• Arrangement for credit facilities • Marketing • Quality inputs• Consultancy and extension services

STATE FINANCIAL CORPORATION

• Established under the SFCs act 1951,play an important role in the development of SME.• The main objectives of SFCs are to finance and

promote SME in their respective ststes for achieving balanced regional growth,catalyse investment ,generate employment and widen the ownership base of industry .• At present 18 SFCs of which one was set up under

the SFCs act ,while TP industrial and investment corporation

• Financial assistance will be provided by way of term loans , direct subscription to equity/debentures ,discounting bills of exchange and seed capital assistance • SFCs operate a no of schemes of refinance of IDBI

and SIDBI

SIDCS ? SIICS

• Sett up under companies act 1956 • Acts as a catalyst for industrial development in

their respective states• SIDCS provides assistance by way of ready made

factory sheds and developed plots together with facilities like roads , power ,water supply ,drinage and other aminities• Term loans ,suscription to equity and promotional

services • Presently there are 28 SIDCs in India•

SSIDCS

• Established under the companies act 1956 , catering to small , tiny and village industries in their respective state

• Some of the imp activities undertaken by SSIDCs a) Procurement and distribution of scare raw mtrlsb) Supply of machinery to SSI units on hire purchase basisc) Assistance for marketing of productsd) Construction of industrial Estate ,provision of allied

infrastructure facilities and their maintenancee) Extending seed capital assistance on behalf of state

GOVTf) Providing MGT assistance to production units .