MODULE VII

Institutional Support
Different Schemes, TECKSOK, KIADB
KSSIDC, KSIMC, DIC single window agency SISI
NSIC
SIDBI
KSFC

MSME
Development
Organization

MSME
Development
Institutes

MSME Technology
Development
Centers

MSME Board
Central
government
National Small
Industries
Corporation
Khadi & Village
Industries
Commission

MSME
Testing
Centers &
Testing
Stations

Coir Board

SIDBI

Entrepreneursh
ip
Development
Institutes

MSME
Tool
Rooms

Commissioner
/Director of
Industries

State Small
Industries
Development
Corporations

Technical
Consultancy
Organization
State
governments

District Industries
Centers

State financial
corporation

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:


Location-specific
identification
of
investment
opportunities.


Assistance in obtaining statutory and procedural
clearances


Feasibility studies and environment impact studies.


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 organizing 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 womens 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.
Kaigarika Varthe 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

industries:: TECSOK is recognized

Promotion of agro based industries
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.

audit:: Thrust is given to use non

nonEnergy management and audit
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
assignments

ecology::
and
ecology
TECSOK
relating
to
environment

undertakes

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.



Engaged in acquiring and developing industrial lands

in different industrial areas.
In case the investor desires, KIADB acquires land in
specific location of investors choice and develops the
land if required, at entrepreneurs 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.
Allotters 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.

Functional Units Of KIADB:

KIADB:
 Acquisition wing:: This wing conducts the
proceedings of acquisition and hand over the
land to KIADB.A special duty commissioner
heads acquisition wi and assisted by special
land acquisition officers at zonal level.This
section is an arm of government which
conducts the proceedings.
 Engineering
wing:
Engineering
section
wing:
prepares design and development plan taking
into consideration of different parameters
like:
 Infrastructure requirements
 Statutory and regulatory requirements
 Co-ordination with other agencies

 Chief

engineer and chief development officer:

officer:
 Heads
engineering
section
assisted
by
development officers who are in charge at the
zonal offices. This wing of KIADB also provides
service to the allottees by approving building
plans, providing water supply connections,NOCs
for obtaining power connections from supply
agencies and addressing the grievances of
allottees at industrial in the matters related to
infrastructure.
 Allotment wing:
wing This section is headed by
secretary assisted by assistant secretaries at
zonal offices. Request of entrepreneurs in the
matters of leasing, issuance of absolute sale
deed, issuance of NOCs for financial assistance,
needful clearances for change in activity,change
in constitution, maintenance of payment records
of allottees etc are attended by allotment
sections.

Accounts wing:
wing Controller of finance,the head
of this department is assisted by senior audit
officer, accounts officer, project officer and
assistant secretary.This wing of KIADB is
engaged
in
drawing
of
budgetory
proposals,project financing and planning.
Administration wing:
wing: Joint director is the head
of this department. This section has overall
responsibility of general administration,
human resources management and other
administrative and logistics matters. This
section ensures that the employees of this
board are abreast with professionalism by
providing trainings, refresher courses for
better productivity in the organization







1.

2.

3.
4.

Established in 1964.
Greatly instrumental in the industrialization of the State,
esp. large and medium sector.
Functions:
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.
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.
Instrumental in Establishing JSW Ltd, Vikrant Tyres ltd,
Karnataka Antibiotics and Pharmaceuticals Ltd.
Persistent efforts aided in Realizing the dream of setting up
the countrys first green field international Airport at
Devanahalli on public private sector partnership.

KSSIDC(then Mysore Small Industries Corporation) is

rendering services to cater to the primary
developmental needs of the small, tiny and village
industries in the state/union territories under their
jurisdiction.
The important functions performed by the KSSIDCs
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.

Karnataka
state
industrial
marketing
corporation(KSIMC)
KSSIDC with the objective of creating market to SSI
product formulated a sister concern called KSIMC
With an investment of 35 lakhs.
The state has also established the
karnataka small industries market corporation to
provide marketing assistance to the small scale
industries sector. These measures have helped
the small scale industries sector to a greater
extent.
Departments, public sector undertakings and
statutory board and corporations is proposed to
amend the karnataka act 2000 to provide
purchase price preference to SSI units of the
state which manufacture items reserved for small
scale industries sector by government of india
from time to time in the following manner:

 75%

of the items reserved by the SSI sector shall

be procured from the units located within the
state through an open tender system.
 SSI units of the state shall be offered a price
preference of 15% over the lowest price quoted.
 This benefit will be available for a period of 5 yrs
from 1st April 2001.
The role of KSIMC will also be reoriented to
help the SSI sector to:
 Improve the quality of products
 Improve
the
production-manufacturing
processes
 Reduce prices.
 Augment exports

The District Industries Centres (DICs) 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 DICs are envisaged
as a single window interacting agency at the
district level providing service and support to
small entrepreneurs under a single roof. DICs
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 Rojgar Yojana) 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 worthiness 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 Rojgar Yojana)

PMRY for providing self-employment to educated

unemployed youth was announced by Prime minister
on 15th august 1993 to provide self-employed
opportunities to one million educated unemployed
youth in the country. The scheme has been formally
launched on 2nd October, 1993.
ObjectivesObjectives- The PMRY has been designed to provide
employment to more than a million Person by setting
up of 7 lakhs micro enterprises by the educated
unemployed youth. It relates to the setting up of the
self-employment ventures through industry, service
and business routes. The scheme also seeks to
associate reputed non-governmental organisations in
implementation PMRY scheme especially in the
selection, training of entrepreneurs and preparation
of project profiles.

Features of P.M.R.Y:
Age should be between 18 to 40 years.
Activities covered are all economically viable activities
including agriculture and allied activities but
excluding direct agricultural operations like raising
Crop, purchase of manure etc.
Scheme envisages compulsory training for
entrepreneurs after the loan is sanctioned.
Should not be a defaulter to any nationalized bank /
financial institution / co-operative bank. Further, a
person already assisted under other subsidy linked
Government schemes would not be eligible under
this scheme.
Should be a permanent resident of the area for at
least 3 years.

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 up gradation

Export Promotion
Ancillary development
Common facility workshop/labs
Preparation of directory of specific industry
Intensive technical assistance
Coordination with district industries centers.
Linkage with state government functionaries
Market surveys.



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, up gradation 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:: Registration under this
scheme for participating in government and public
sector undertaking tenders.
2. Information service
service:: NSIC continuously gets updated
with the latest specific information on business leads,
technology and policy issues.
3. Raw material assistance
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
SSI:: NSIC facilitate sanctions
of term loan and working capital credit limit of small
enterprise from banks.
5. Performance and credit rating
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.

For ensuring larger flow of financial and nonfinancial 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.

The important functions of SIDBI are as follows:

(1) To initiate steps for technological up gradation 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 SIDBIs 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
up
gradation,
programmes on environment and quality
management, market promotion, information
dissemination etc are performed by SIDBI.

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 1,65,128 units amounting
to nearly Rs 11,282 crores over the last 49 years in Karnataka. It is
one of the robust and professionally managed state financial
corporations.
Objective :

Provides term loans for establishment of new Tiny/SSI/MSI/service
units and for expansion/modernization/diversification of existing
units.

Assistance for rehabilitation of potentially viable sick units.

To evaluate the effectiveness, reliability and integrity of loan
management system module of online system in particular and
other modules in general.

To assist small and medium scale existing units with good track
record to undertake various activities necessary to increase sales
in domestic and foreign markets and to create physical marketing
infrastructure.

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 centres 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.

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
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
up
gradation,
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.

Market Development Assistance Scheme

Offers funding up to 90% in respect of toand-fro air fare for participation by MSME
entrepreneurs in overseas fairs and trade
delegations.

The scheme also provides for funding for
producing publicity material (up to 25% of
costs), sector specific studies (up to Rs 2
lakh), and for contesting antidumping cases
(50%, up to Rs 1 lakh).