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1.KIADB:

Karnataka Industrial Areas Development Board (KIADB) is a statutory body, constituted under
sec.5 of Karnataka Industrial Areas Development Act (KIAD Act)-1966 vide order No. Cl 67 GMI 66
dated 20th June 1966 to promote rapid and orderly establishment and development of industries and for
providing industrial infrastructural facilities and other amenities in Industrial areas in the State of
Karnataka. KIAD Act-1966, a special Act, provides for expeditious acquisition of lands for industrial and
infrastructure purposes.

KIADB functions as per statutory provisions, Rules and Regulations enacted under the KIAD Act.
The Board comprises of senior Government Officers in their ex-officio capacities. The Board members
meet regularly to take decisions and monitor the functions. The vision of KIADB and world class
infrastructure has made investors all over the world take notice of Karnataka as the premier destination for
their startups and ventures.

Aims and Objectives:

1. Promote rapid and orderly development of industries in the state.

2. Assist in implementation of policies of Government within the purview of KIAD Act.

3. Facilitate in establishing infrastructure projects.

4. Function on “No Profit – No Loss” basis.

Functions:

1. Acquire land and develop industrial areas in the state.

2. Provide basic infrastructure in the industrial areas.
3. Acquire land for Single Unit Complexes.
4. Acquire land for Government agencies for their schemes and infrastructure projects.

Facilitator of industrial growth:

KIADB has so far developed 160 Industrial Areas in 29 districts of the State. A typical industrial area
developed by the Board will have following infrastructure facilities:

1. Approach roads and internal roads with storm water drains.

2. Power supply and street lighting.
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3. Water supply.
4. CETP/STP.
5. Technical Training Centres and R&D centres.
6. Common Facilities Centres to accommodate Banks, Post Offices, Telephone Exchanges,
Dispensaries and Canteens, among others.
7. Power Sub-Stations.
8. Hotels & Hospitals.
9. Housing tenements to provide housing facility to the labour force working in the industrial units.

2. Project identification:

The purpose of project identification is to develop a preliminary proposal for the most appropriate
set of interventions and course of action, within specific time and budget frames, to address a specific
development goal in a particular region or setting. Investment ideas can arise from many sources and
contexts. They can originate from a country’s sector plan, programme or strategy, as follow-up of an
existing project or from priorities identified in a multi-stakeholder sector or local development dialogue.
Identification involves:

1. A review of alternative approaches or options for addressing a set of development problems and
opportunities;
2. The definition of project objectives and scope of work at the degree of detail necessary to justify
commitment of the resources for detailed formulation and respective preparatory studies; and
3. The identification of the major issues that must be tackled and the questions to be addressed before
a project based on the concept can be implemented.

Sufficient information on project options must be gathered to enable the government and financing
agencies to select a priority project and reach agreements among stakeholders on arrangements for
preparation work, including setting up steering committees or national preparation teams. The results of
identification work should be summarized in a report, project brief or concept document, the format of
which will depend upon the government’s and/or financing agencies’ requirements.
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Project formulation:

The project formulation is a systemic expression of such plan with detailed estimates within certain
parameters. Such estimates in order to be more realistic and reliable are based on actual experiences,
environments along with the trends forecasted for the coming years. All these are formulated in a ‘project
report’. The project formulation needs lot of functional support from the specialists in their relevant fields.

Once the project has been identified necessary steps are taken to explore and assess the viability of the
project.

It involves a study in one or more or all of the following areas:

(i) Technical:

a. Whether the technology involved in the project is appropriate to meet the objectives, to ensure that

b. It is not an obsolete technology;

c. The technical collaborator is capable to impart such technology often assured by a term of buy-back of
part of the production;

d. The other terms for the know-how are reasonable and acceptable as per norms.

(ii) Economical:

a. The investment for the project is justified considering the overall economical situation and, in
particular, relevant to the industry for which the project is being planned.

b. The project cost is justified as against the economic benefit to be derived from it.

(iii) Financial:

a. The necessary resources will be available in time during the implementation of the project and its
subsequent operation. Experience indicates that many projects, after being partially carried out, are
stopped (particularly in the public sector) due to lack of funds leading to delay in its implementation and
cost escalation.

b. The estimated revenue to be generated from the project after being implemented is sufficient to justify
the project capital cost.
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(iv) Social:

a. The objective of the project is to serve common people through rural development, education, health-
care etc. It should be ensured that sufficient funds are available to maintain such project e.g. a hospital
built-up and equipped with necessary machineries/apparatus could not be run in the absence of funds to
pay the doctors, nurses/maintenance staff etc.

b. Such studies are made and database prepared having information from various authentic sources as well
as professional bodies, market research & analysts etc. The preparation of a project report passes through
phases as project profile, pre-feasibility, feasibility and end up with a detailed project report (DPR).

c. Every such study is a costly affair, and it is not a must that a project should pass through all such
studies. The status of the studies and reliability of the forecasted details in the report (pre-feasibility,
feasibility etc.) improve with the managerial decision to dig in further as well as more detailed information
available with the passage of time.

Thus, the project formulation develops from a Project Profile to a DPR. On the other hand, the project
owner may even look for a DPR without any other reports as project profile etc.
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3.DIC- District Industries Centres:

The industrial Policy 1977 contained the concept of District Industries Centres (DIC). DIC
program was initiated on 1st May 1978 as a centrally sponsored scheme. It was a landmark measure in
development of cottage and small industries in smaller towns in India. DIC’s were started with a view to
provide integrated administrative framework at the district level for industrial promotion.

DIC Registration:

DIC is the primary registering centre. Registration is voluntary and not compulsory. Two types of
registration is done in all States. First a provisional registration certificate is given. And after
commencement of production, a permanent registration certificate is given.

Provisional Registration Certificate (PRC)

This is given for the pre-operative period and enables the units to obtain the term loans and working
capital from financial institutions/banks under priority sector lending.

Obtain facilities for accommodation, land, other approvals etc.

Obtain various necessary NOCs and clearances from regulatory bodies such as Pollution Control Board,
Labour Regulations etc.

Permanent Registration Certificate:

Enables the unit to get the following incentives/concessions:

1. Income-Tax exemption and Sales Tax exemption as per State Govt. Policy.
2. Incentives and concessions in power tariff etc.
3. Price and purchase preference for goods produced.
4. Availability of raw material depending on existing policy.
5. Permanent registration of tiny units should be renewed after 5 years.

Procedure for Registration:

Features of the present procedures are as follows:

1. A unit can apply for PRC for any item that does not require industrial license which means items
listed in Schedule-III and items not listed in Schedule-I or Schedule-II of the licencing Exemption
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Notification. Units employing less than 50/100 workers with/without power can apply for
registration even for those items included in Schedule-II.
2. Unit applies for PRC in prescribed application form. No field enquiry is done and PRC is issued.
3. PRC is valid for five years. If the entrepreneur is unable to set up the unit in this period, he can
apply afresh at the end of five years period.
4. Once the unit commences production, it has to apply for permanent registration on the prescribed
form.

The following form basis of evaluation:

1. The unit has obtained all necessary clearances whether statutory or administrative. e.g. drug
license under drug control order, NOC from Pollution Control Board, if required etc.
2. Unit does not violate any locational restrictions in force, at the time of evaluation.
3. Value of plant and machinery is within prescribed limits.
4. Unit is not owned, controlled or subsidiary of any other industrial undertaking as per notification.

De-Registration:

1. A Small Scale Unit can violate the regulations in the following ways which will make it liable for
de-registration:
2. It crosses the investment limits.
3. It starts manufacturing any new item or items that require an industrial license or other kind of
statutory license.
4. It does not satisfy the condition of being owned, controlled or being a subsidiary of any other
industrial undertaking.

SSI Registration:

Step 1: Provisional SSI Registration

To obtain SSI registration the business must first apply for Provisional SSI Registration Certificate (PRC).
Provisional Registration Certificate is given when the unit is in a pre-operative period and helps the SSI
unit obtain term loans and working capital from financial institutions/banks under priority sector lending.
In addition to helping obtain bank loan, the provisional SSI registration certificate also helps the business
obtain facilities for accommodation, land, other approvals etc. and obtain various necessary NOCs and
clearances from regulatory bodies such as Pollution Control Board, Labour Regulations etc.
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Provisional SSI registration can be applied for by a business at any time and industrial license is not
required. Once an application is made for Provisional SSI registration, the provisional registration is
provided and no field enquiry is done. Provisional SSI registrations are valid for five years and if the
entrepreneur is unable to set up the unit in this period, a fresh application for provisional registration can
be made at the end of five years period.

Step 2: Start the Business

Start the business with the provisional SSI registration certificate. Commence activity or production.

Step 3: Permanent SSI Registration

Once the business commences production or activity, the business can apply for and obtain permanent SSI
registration. Obtaining permanent SSI registration will help the business obtain the following benefits:

 Income-Tax exemption and Sales Tax exemption as per State Government Policy
 Incentives and concessions in power tariff as per State Government Policy
 Price and purchase preference for goods produced
 Availability of raw material depending on existing policy

Permanent SSI registration will be provided only if the following conditions are satisfied by the SSI unit:

i) The unit has obtained all necessary clearances whether statutory or administrative,

ii) The unit does not violate any restrictions in force,

iii) Value of plant and machinery is within prescribed limits and

iv) The unit is not owned, controlled or subsidiary of any other industrial undertaking as per notification.
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4. TECSOK:

Technical Consultancy Services Organization of Karnataka (TECSOK), is a multidisciplinary

technical, industrial and management consultancy organization set up.

It was established in the year 1976 by the Government of Karnataka. The primary objective of
founding TECSOK was to provide reliable consultancy support for entrepreneurs to start up self
employment ventures in Karnataka, India.

TECSOK is a multidisciplinary management consultancy organization promoted by the

Government of Karnataka to provide reliable consultancy services in India. TECSOK has been excelling
its expertise in a wide range of services. The package of services includes feasibility studies, market
research, valuation of assets, environment impact studies, energy management and audit, management
studies like corporate plan, reorganization and restructuring of enterprises, man power planning, budgetary
control systems, mergers and acquisitions, investment opportunities, technology transfers, diagnostic
studies and also designing and organizing training programmes in all related areas. Of late,

TECSOK is also concentrating on studies relating to Cleaner Production technologies and

methods. TECSOK has been considered by the Government of Karnataka, Government of India, State &
Central Financial Institutions, Commercial Banks, Asian Development Bank and a host of other
institutions of the Government and Private as the recognized consultancy agency. A Powerhouse of
Expertise The TECSOK consultancy is driven by top-notch professionals from different disciplines;
engineers, management experts, economists and financial consultants. TECSOK partners with reputed
national and multinational consultants, outsourcing expertise for professional synergy.

Primary objective:

The primary objective of founding TECSOK "as to provide reliable consultancy support for entrepreneurs
to start up self employment ventures in Karnataka.”

Package of services:

 Feasibility studies
 Market research,
 Valuation of assets,
 Environment impact studies,
 Energy management and audit,
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 Management studies like corporate plan,

 Reorganization and restructuring of enterprises,
 Man power planning,
 Budgetary control systems, mergers and acquisitions,
 Investment opportunities,
 Technology transfers,
 Diagnostic studies and also designing and organizing

 Training programmes in all related areas

Major Projects Handled by TECSOK:

A. Project Conceptualization & Monitoring:

• Project Conceptualization & Monitoring.

• Monitoring the construction of Living-cum-work sheds for the sectors of Handloom, Handicrafts,
leather, and SI under Dutch assistance.

• Karnataka Urban Development Project-Shelter and Water Supply for World Bank assistance.

• Conceptualization of Kaigarika Vikasa Scheme for development of Backward Taluks.

• Entrepreneurship training for Project Affected Families of Project Sea Bird, Karwar.

B. Viability Report for Infrastructure Development:

• Report for development of Growth Centers at Dharwad, Raichur and Hassan.

• Study on Infrastructure availability in the leading States.

• Feasibility study on Hassan Airport.

C. Potential Studies / Techno-Economic Surveys:

• District Potential Study and Project Reports under Swarnajayanti Gram Swarozgar Yojanafor 10 districts
in Karnataka.

• Techno-Economic surveys of major districts of Karnataka.

• Technology profile study of Karnataka.

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• Resource Mapping of 39 Most Backward Taluks.

D. Market Survey / Assessment:

• Demand survey for setting up Tertiary Treated Water plant in Bangalore.

• Study Report on availability of raw materials and scope for new Solvent extraction

plants in Karnataka

• Study on working of Alcohol based chemical units to assess the utilization of allotted RS/DS.

• Study on Energy conservation measures in energy Intensive Industries.

• Study report on fixing tariff rates for utilizing the services of Jawaharlal Nehru Port Trust, Mumbai.

• Fixing vessel related charges for Murmugoa Port Trust, Goa.

• Study on Consultancy capabilities in Karnataka.

• Study on various aspects of lending by NABARD for non-farm sector in 14 districts of Karnataka.

• Survey of Rice Mills to assess the potential for establishment of edible grade Rice Branoil units.

• Market study on Natural Gas in Karnataka.

• Market intelligence Report on Packaged Tender Coconut Water.

E. Evaluation of Impact Assessment:

• Report on District Industrial Training Centre & Artisan Training Institute in Karnataka.

• Rural Industries Programme of NABARD at Bellary.

• Concurrent evaluation of Indira Awas Yojana and Million Well Scheme in the State of Tamil Nadu.

• Evaluation Study of all the Schemes of Ministry of Rural Development in four Blocks of Mysore and
Bellary districts.

• Study on Socio-Economic Impact of Indo Danish Fisheries Project at Tadri, U.K District.

• Evaluation of Schemes of KMDC.

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F. Policy, Prospective Plans & special studies:

•Formulation of New Industrial Policy and Package of Incentives and Concessions during1982, 1988,
1990, 1993, 1996 2001& 2006.

•Perspective plan for Karnataka Industrial Areas Development Board, an Infrastructural development
agency of the State.

•Appraisal studies of 15 State Public Sector Enterprises.

Areas of specialization of TECSOK:

The areas of specialization of these consultants include:

• Electrical, Electronics, Telecommunication, Informatics and Computer Appilcation.

• Pollution Control measures, Environment Management Plan and Environment Impact Assessement.

• Metallurgical, Mechanical, Civil and Infrastructure Development.

• Textiles, Sericulture, Garments.

• Energy Management, Non Conventional Energy use.

• Market Research, Data collection and Market Surveys.

• Chemical, Pharmaceutical and Plastic Engineering.

• Corporate plans, Techno-Economic studies, Management consultancy.

• Rural Development, Training, Publications, Information.

• International Trade, Business Development, Chartered Engineering Services,Valuation Studies.

• Agriculture, Horticulture based Industries, Food Processing.

• Women Development, Women Entrepreneurship, Training need assessment.

• Design and Delivery of training programmes, Institution Building, Re-organization & Human Resource
management.

• Curriculum vitae of Individual consultants on specific assignment can be had from TECSOK on request