You are on page 1of 3

Institutional Support for SSI

The list of various State and Central Government agencies supporting small-scale industries is given in previous chapter. Their activities and functions are discussed in the following sections. NATIONAL SMALL INDUSTRIES CORPORATION (NSIC) The National Small Industries Corporation (NSIC), an enterprise under the union ministr of industries was set up in !"## in New $elhi to promote aid and facilitate the growth of small scale industries in the countr . NSIC offers a pac%age of assistance for the &enefit of small'scale enterprises. !. Single point registration: (egistration under this scheme for participating in government and pu&lic sector underta%ing tenders. ). Information service: NSIC continuousl gets updated with the latest specific information on &usiness leads, technolog and polic issues. *. Raw material assistance: NSIC fulfils raw material re+uirements of small-scale industries and provides raw material on convenient and fle,i&le terms. -. Meeting credit needs of SSI: NSIC facilitate sanctions of term loan and wor%ing capital credit limit of small enterprise from &an%s. #. Performance and credit rating: NSIC gives credit rating & international agencies su&sidi.ed for small enterprises up to /#0 to get &etter credit terms from &an%s and e,port orders from foreign &u ers. 1. Marketing assistance programme: NSIC participates in government tenders on &ehalf of small enterprises to procure orders for them. SMALL INDUSTRIES DEVELOPMENT ORGANI ATION (SIDO) SI$2 is created for development of various small scale units in different areas. SI$2 is a su&ordinate office of department of SSI and 3(I. It is a nodal agenc for identif ing the needs of SSI units coordinating and monitoring the policies and programmes for promotion of the small industries. It underta%es various programmes of training, consultanc , evaluation for needs of SSI and development of industrial estates. 3ll these functions are ta%en care with )/ offices, *! SISI (Small Industries Service Institute) *! e,tension centers of SISI and / centers related to production and process development. The activities of SI$2 are divided into three categories as follows4 (a) Coordination activities of SIDO: (!) To coordinate various programmes and policies of various state governments pertaining to small industries. ()) To maintain relation with central industr ministr , planning commission, state level industries ministr and financial institutions. (*) Implement and coordinate in the development of industrial estates. (&) Industrial development activities of SIDO: (!) $evelop import su&stitutions for components and products &ased on the data availa&le for various volumes-wise and value-wise imports. ()) To give essential support and guidance for the development of ancillar units. (*) To provide guidance to SSI units in terms of costing mar%et competition and to encourage them to participate in the government stores and purchasetenders. (-) To recommend the central government for reserving certain items to produce at SSI level onl . (c) Management activities of SIDO: (!) To provide training, development and consultanc services to SSI to develop their competitive strength. ()) To provide mar%eting assistance to various SSI units. (*) To assist SSI units in selection of plant and machiner , location, la out design and appropriate process. (-) To help them get updated in various information related to the small-scale industries activities.

SMALL INDUSTRIES SERVICE INSTITUTES (SISI) The small industries service institutes have &een set up in state capitals and other places all over the countr to provide consultanc and training to small entrepreneurs &oth e,isting and prospective. The main functions of SISI include: (!) To serve as interface &etween central and state government. ()) To render technical support services. (*) To conduct entrepreneurship development programmes. (-) To initiate promotional programmes. The SISIs also render assistance in the following areas: (!) 5conomic consultanc 6information65$7 consultanc . ()) Trade and mar%et information. (*) 7ro8ect profiles. (-) State industrial potential surve s. (#) $istrict industrial potential surve s. (1) 9oderni.ation and in plant studies. (/) :or%shop facilities. (;) Training in various trade6activities. SMALL SCALE INDUSTRIES !OARD (SSI!) The government of India constituted a &oard, namel , Small Scale Industries <oard (SSI<) in !"#- to advice on development of small scale industries in the countr . The SSI< is also %nown as central small industries &oard. The range of development wor% in small scale industries involves several departments 6ministries and several organs of the central6state governments. =ence, to facilitate co-ordination and inter-institutional lin%ages, the small scale industries &oard has &een constituted. It is an ape, advisor &od constituted to render advice to the government on all issues pertaining to the development of small-scale industries.The industries minister of the government of India is the chairman of the SSI<.The SSI< comprises of #> mem&ers including state industr minister, some mem&ers of parliament, and secretaries of various departments of government of India, financial institutions, pu&lic sector underta%ings, industr associations and eminent e,perts in the field. STATE SMALL INDUSTRIES DEVELOPMENT CORPORATIONS (SSIDC) The State Small Industries $evelopment Corporations (SSI$C) were sets up in various states under the companies? act !"#1, as state government underta%ings to cater to the primar developmental needs of the small tin and village industries in the state6 union territories under their 8urisdiction. Incorporation under the companies act has provided SSI$Cs with greater operational fle,i&ilit and wider scope for underta%ing a variet of activities for the &enefit of the small sector. The important functions performed & the SSI$Cs include4 @ To procure and distri&ute scarce raw materials. @ To suppl machiner on hire purchase s stem. @ To provide assistance for mar%eting of the products of small-scale industries. @ To construct industrial estates6sheds, providing allied infrastructure facilities and their maintenance. @ To e,tend seed capital assistance on &ehalf of the state government concerned provide management assistance to production units.

DISTRICT INDUSTRIES CENTERS (DIC) The $istrict Industries Centers ($IC?s) programme was started in !"/; with a view to provide integrated administrative framewor% at the district level for promotion of small scale industries in rural areas. The $IC?s are envisaged as a single window interacting agenc at the district level providing service and support to small entrepreneurs under a single roof. $IC?s are the implementing arm of the central and state governments of the various schemes and programmes. (egistration of small industries is done at the district industries centre and 79(A (7radhan 9antri (o8gar Ao8ana) is also implemented & $IC. The organi.ational structure of $ICS consists of General 9anager, Bunctional 9anagers and 7ro8ect 9anagers to provide technical services in the areas relevant to the needs of the district concerned. 9anagement of $IC is done & the state government. The main functions of $IC are4 (!) To prepare and %eep model pro8ect profiles for reference of the entrepreneurs. ()) To prepare action plan to implement the schemes effectivel alread identified. (*) To underta%e industrial potential surve and to identif the t pes of feasi&le ventures which can &e ta%en up in IS< sector, i.e., industrial sector, servicesector and &usiness sector. (-) To guide entrepreneurs in matters relating to selecting the most appropriate machiner and e+uipment, sources of it suppl and procedure for importingmachineries. (#) To provide guidance for appropriate loan amount and documentation. (1) To assist entrepreneurs for availing land and shed e+uipment and tools, furniture and fi,tures. (/) To appraise the worthness of the pro8ect-proposals received from entrepreneurs. (;) To help the entrepreneurs in o&taining re+uired licenses6permits6clearance. (") To assist the entrepreneurs in mar%eting their products and assess the possi&ilities of ancillari.ation. (!>) To conduct product development wor% appropriate to small industr . SMALL INDUSTRIES DEVELOPMENT !AN" O# INDIA (SID!I) Bor ensuring larger flow of financial and non-financial assistance to the small scale sector, the government of India set up the Small Industries $evelopment <an% of India (SI$<I) under Special 3ct of 7arliament in !";" as a wholl owned su&sidiar of the I$<I. The SI$<I has ta%en over the outstanding portfolio of the I$<I relating to the small scale sector. The important functions of I$<I are as follows4 (!) To initiate steps for technological upgradation and moderni.ation of e,isting units. ()) To e,pand the channels for mar%eting the products of SSI sector in domestic and international mar%ets. (*) To promote emplo ment oriented industries especiall in semi-ur&an areas to create more emplo ment opportunities and there& chec%ing migration ofpeople to ur&an areas. The SI$<Is financial assistance to SSIs is channeled through e,isting credit deliver s stem comprising state financial corporations, state industrial development corporations, commercial &an%s and regional rural &an%s. In !"")-"* it has introduced two new schemes. The first is e+uipment finance scheme for providing direct finance to e,isting well-run small-scale units ta%ing up technolog upgradation6moderni.ation and refinance for resettlement of voluntaril retired wor%ers of NTC. The other new scheme was venture capital fund e,clusivel for smallscale units, with an initial corpus of (s !>crore. SI$<I also provides financial support to national small industries corporation(NSIC) for providing leasing, hire-purchase and mar%eting support to the industrial unitsin the small scale sector.