Scribd
Upload
6K views16 pages

Small Scale Industries Development Corporation (Ssidcs)

1. Commercial banks are the main source of short-term funding for small businesses when collateral is available. 2. The Reserve Bank of India introduced various measures to increase credit flow to small scale industries, including requiring banks to allocate 10% of their net credit to SSIs. 3. Small scale industries are important for rural development and job creation in India.

Uploaded by

Jasmeet
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
6K views16 pages

Small Scale Industries Development Corporation (Ssidcs)

1. Commercial banks are the main source of short-term funding for small businesses when collateral is available. 2. The Reserve Bank of India introduced various measures to increase credit flow to small scale industries, including requiring banks to allocate 10% of their net credit to SSIs. 3. Small scale industries are important for rural development and job creation in India.

Uploaded by

Jasmeet
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 16

Small Scale Industries

Development Corporation
(SSIDCS)
Commercial Banks
Commercial banks are the source of short term
funds most frequently used by entrepreneurs
when collateral (tangible guaranty) is available.

The scheduled commercial banks in country (299


banks) comprise State bank of India & its associated
banks (8), private sector banks (34), regional and
rural banks (196) and foreign banks (42).
◦ For a very long time, commercial banks didn’t
come forward to extend financial assistance to
small scale industry because of weak
economic base.

◦ First lead was taken by SBI, in consultation


with RBI in March 1956 by setting up scheme
for provision of credit.

◦ Normally banks provide assistance for


working capital requirement of SSI.

◦ RBI introduced a LEAD BANK SCHEME


 RBI introduced special package of
measure of financing SSI and advised
banks to take various measure and aimed
at increasing credit flow.

Availability of credit improved further the


stipulation of foreign credit to extend 10%
of their net bank credit to SSI’s.
Commercial Banks of India
IDBI- Industrial Development Bank of India
ICICI- Indian Credit & Investment Credit Corp.
IFCI- Industrial Finance Corporation of India
LIC- Life Insurance Corporation of India
UTI (AXIS Bank)
EXIM Bank
SIDBI
SIDC’S
Small scale industries were dream of
Mahatma Gandhi, father of our nation.
They are not capital based rather they are
talent based industries which can be owned
and run by middle class people.
Small scale industry is a term which applies
to the small entrepreneurs who are engaged
in manufacture and production on a micro
scale. It mainly refers to agro- based rural
industry which doesn't require huge capital
influx and large infrastructure.
 These small scale industries also include the
indigenous cottage industry and the
handicrafts industry. The development of
small scale industries is very important for a
country like India which has mainly rural
economy.
These small scale industries which are
mainly agro- based in nature would provide
job for millions of Indians and would
contribute largely to the overall growth of the
Indian economy .
The SSIDC were set up in various states
under companies Act, 1956 as State
Government undertakings.
At present 18 SSIDCs are in operation :
Some important activities are:
Procurement & distribution of scarce raw
material.
Supply of machinery on hire purchase basis.
Providing assistance for marketing of the
products of small scale units.
Construction of industrial estates/sheds,
providing allied infrastructure facilities
and their maintenance.
Providing management assistance to
production units.
Small Scale Industry Development
Organization.
 Itis the Office of the Development Commissioner for Small
Scale Industries. SIDO was established in 1954 on the basis
of the recommendations of the Ford Foundation. It has over
60 offices and 21 autonomous bodies under its management.
These autonomous bodies include Tool Rooms, Training
Institutions and Project-cum-Process Development Centers.

 Various Services provided by SIDO to the SMEs:-


 facilities for testing, tool menting, training for
entrepreneurship development
 preparation of project and product profiles
 technical and managerial consultancy
 assistance for exports
 pollution and energy audits
Small Scale Service & Business
Enterprise (SSSBEs)
 The investment up to 10 lakh excluding land and
building is considered as benefit to small scale sector:

Indirect finance in the small-scale industrial sector


will include credit to :
 Agencies involved in assisting the decentralized
sector in the supply of inputs and marketing of outputs
of artisans, village and cottage industries.
 Government sponsored Corporation/organizations
providing funds to the Weaker sections in the priority
sector.

 
 
 Advances to handloom co-operatives.
 Term finance/loans in the form of lines of credit made
available to State Industrial Development Corporation/State
Financial Corporations for financing SSIs.
 Credit provided by banks to Khadi and Village Industries
Commission (KVIC) under the scheme for provision of credit
to KVIC by consortium of banks for lending to viable Khadi
and Village Industrial Units.
 Funds provided by commercial banks to SIDBI/SFCs will be
eligible for inclusion under the priority sector as indirect
finance to SSI.

Financing of NBFCs or other intermediaries for on-lending to the


tiny sector.
All new loans granted by banks to NBFCs and other intermediaries
for on-lending to SSI sector with effect from November 11,
2003.
 
Food & Agro-based processing
sector
 Fruitand vegetable processing industry
 Food grain milling industry
 Dairy products
 Processing of poultry and eggs, meat products
 Fish processing
 Bread, oilseeds, meals (edible), breakfast foods, biscuits,
confectionery (including cocoa processing and chocolate),
malt extract, protein isolate, high protein food, weaning food
and extruded/other ready to eat food products
 Aerated water/soft drinks and other processed foods
 Special packaging for food processing industries
 Technical assistance and advice to food processing industries
Khadi & Village Industries
Commission (KVIC)
KVIC is a statutory body established by
an Act of parliament(1956).
Objectives:
Social objective is providing
employment.
Economic objective of producing saleable
articles.
Building up a strong rural community
spirit.
Functions :
Major function for planning, organizing,
promoting and implementation of
programs for the development of Khadi
and other villages industries in the rural
areas
KVIC also promotes the production
techniques and equipment employed in
Khadi and village industries.

You might also like