INSTITUTIONAL SUPPORT
Topics going to be discuss
• Different schemes • SISI
• TECKSOK • NSIC
• KIADB • SIDBI
• KSSIDC • KSFC
• KSIMC
• DIC Single window
agency
Abbreviations
• TECKSOK – Technical Consultancy Services Organization
of Karnataka.
• KIADB – Karnataka Industrial Areas Development Board.
• KSSIDC – Karnataka State Small Industries Development
Corporation.
• KSIMC - Karnataka Small Industries Marketing
Corporation
• DIC – District Industries Centers
• SISI – Small Industries Service Institutes
• NSIC – National Small Industries Corporation
• SIDBI – Small Industries Development Bank of India
• KSFC - Karnataka State Financial Corporation
Necessity of Institutional Support
Starting a business or industrial unit requires various resources and
facilities. Finance is the most important resource.
Finance facilitates the entrepreneur to procure land ,engage labor,
procure plant and machinery, raw materials and others.
Many small entrepreneurs ,though they have ideas and skills are not
able to start their own enterprise for the lack money.
Government has set up institutions to provide financial assistance to
enthusiastic and skilled people to start an enterprise and run it.
Institutional support helps to make the economic environment more
conductive to the business or enterprise.
Some of the support and facilities provided by various institutions to
the entrepreneurs ,to help them to establish the industries are
explained here.
State Schemes
• TECKSOK – Technical Consultancy Services Organization
of Karnataka.
• KIADB – Karnataka Industrial Areas Development Board.
• KSSIDC – Karnataka State Small Industries Development
Corporation.
• KSIMC - Karnataka Small Industries Marketing
Corporation
• DICSWA – District Industries Centers Single Window
Agency
• KSFC - Karnataka State Financial Corporation
National / Central Government Schemes
• SISI – Small Industries Service Institutes
• SIDBI – Small Industries Development Bank of
India.
• NSIC – National Small Industries Corporation
State and Central
SIBDBI – Small Industries Development Bank of India
NABARD – National Bank for Agricultural and Rural Development
HUDCO – Housing and Urban Development Corporation Ltd
NGO – Non Governmental Organizations
EPC – Export Promotion Council
CII – Confederation of Indian Industries
FICCI – Federation of Indian Chambers of Commerce and Industry
ASSOCHAM – Associated Chambers of Commerce and Industry of
India
WASME – World Association for Small and Medium Enterprise
LUB – Laghu Udyog Bharathi
ICSI – Indian Council of Small Industries
CSIR – Council of Industrial and Scientific Research
TECKSOK – Technical Consultancy Services Organization of Karnataka.
TECKSOK is a professional,Industrial,technical and management
consultancy organization promoted by government of Karnataka
in1976.It is located in basava bhavan,basaveshwara circle
bangalore.
It is a leading investor – friendly professional consultancy
organization.
Nature and support:
Multi disciplinary technical, Industrial , management consultancy.
Objectives
To provide reliable consultancy support for entrepreneurs to
startup self-employment ventures in Karnataka.
To provide consultancy services to the various departments and
agencies of state and central governments.
TECKSOK – Technical Consultancy Services Organization
of Karnataka
Functions
To identify investment opportunities which are location specific.
To assist entrepreneurs in obtaining statutory(legal) and procedural
clearances.
To carry out feasibility studies and environmental studies impact
studies.
To assist preparation of the detailed project reports as per investment
norms and financial norm.
To carry out market survey and research specific to industry needs.
To assist in project implementation and extend turn key assistance.
To help in reorganization and restructuring of employees.
To diagnose sick units and suggest rehabilitation measures
To provide consultancy in valuation of assets, man power planning and
budgetary control system
TECKSOK – Technical Consultancy Services
Organization of Karnataka
Focused consultancy areas are as under
Promotion of Agro-based Industries
Energy management and audit
Environment and Ecology
Human resource development
Type of help
Since its inception TECSOK has catalyzed a
large number of industries throughout India.
KIADB – Karnataka Industrial Areas
Development Board.
This is a statutory body established in 1966 by government of
Karnataka .Headquarters located in Bangalore with 9 zonal
offices all over Karnataka.
Objective
It was established with the objective of promoting and
assisting in the rapid growth and development of industries in
the state of Karnataka.
To provide infrastructural facilities and amenities to SSIs.
To assist in implementation of government policies.
To function on “No profit – No loss basis”.
KIADB – Karnataka Industrial Areas Development
Board
Functions
To acquire lands for industrial activity at identified and
notified locations and form industrial area with all
infrastructure facilities.
These basic facilities include roads ,drainage, water and
power supply.
Amenities such as banks, post offices, telephone exchange,
fire stations, police out posts, ESI dispensaries, bus depots,
police out posts, petrol bunks etc..are provided.
To acquire lands in favor of single unit. By means single
unit complexes government organizations to facilitate
government projects.
To maintain the infrastructural facilities during the
contractual project.
KIADB – Karnataka Industrial Areas
Development Board
Types of help
Till date KIADB has found 95 industrial areas spread all over
the state and acquired land for nearly 290 single unit
complexes.
Land will be allotted based on the application accompanied by
the following
A brief project report
Details constitution of the company
Provisional registration certificate
EMD (Earnest Money Deposit) along with a small percentage
of land cost.
KSSIDC
Karnataka state small industries development corporation established
in 1960 by government of Karnataka.
Nature of support: Infrastructure and Industrial inputs
Functions
To establish and manage industrial estates
To procure and distribute scarce and rare raw materials to various SSIs
To provide assistance towards marketing products from various SSIs
To reorganize national level and international level exhibition and
facilitate exchange of information
To supply machinery under hire purchase scheme
To provide guidance to SSI entrepreneurs
To provide technical library facilities to help entrepreneurs in their
work
To provide laboratory facilities in coordination with Indian standard
institution
KSSIDC
To act as a catalyst for promoting industrial growth in the state ,
especially in the medium and large sector by
Identifying industrial opportunities
providing guidance and advice to prospective entrepreneurs
Providing necessary financial assistance and other related services to
realize these opportunities.
To act as the designated agency of the government to plan and
formulate proposals for industrial infrastructure development
projects after assessing the need.
Monitor the specified mega projects during implementation as nodal
agency.
Types of Help
KSSIDC has promoted establishment of ancillary units to help PSU’s
like BEL(Bharat Electronics Limited),ITL,HAL, NGEF(New Government
Electrical Factory),BEML etc.
It has constructed 86 plots exclusively for SC/ST entrepreneurs
KSIMC
Karnataka Small Industries Marketing Corporation.
KSIMC was promoted by the government of Karnataka as a subsidiary
of KSSIDC in 1984 to assist small enterprises in marketing their
products.
The office is Rajajinagar Industrial Estate.
Objectives
To extend marketing support and assistance
To procure government needs from SSIs thoroughly purchase and
price preference.
Functions
KSIMC was procuring purchase orders from various Karnataka state
government departments for their requirements for wooden & steel
furniture's& other requirements.
It is used to procure these items from small scale industries & supply
to the government departments.
KSIMC
To improve quality of products
Improve production manufacturing process
Reduce prices
Augment(engage) exports
Types of help
75 % of items reserved by SSI sector shall be procured from
the units located with in state, through an open tender
system.
SSI units of the state shall be offered a price preference of 15
% over lowest price quoted.
Benefits were available from 1st April 2001 up to 5 years
DIC
District Industries Centers – Single Window Agency launched in 1978
in all districts of each state. There are about 400 DIC’s in India.
Objective
To effectively promote cottage and small scale industries in rural
areas and small towns
DIC program was started in 1978 with a view to provide
integrated administrative frame work at the district level for the
promotion of SSIs in rural areas.
The DIC are envisaged as a single window interacting agency with
the entrepreneur at the district level services and support to small
entrepreneurs are provided under single roof through DICs.
They are implementing arm of central and state government of
various schemes & programs (prime minister rozgar yojana)
DICs role is mainly promotional and developmental .To attain this
they have to perform following main functions.
Functions
Surveys :
To conduct industrial potential surveys keeping in view the availability of the
resources in terms of materials and human skills, infrastructure ,demand for
product etc..
To prepare techno-economic surveys and identify product lines and they
provide investment advise to entrepreneurs.
Action plan: To prepare an action plan to effectively implement the schemes
identified.
Appraisal : To appraise various investment proposals received from
entrepreneurs.
Guidance: To guide entrepreneurs in matters relating to selecting the most
appropriate machinery and equipment, source of supply & procedure for
procuring imported machinery, if needed assessing requirements for new
materials.
Marketing: To assist in marketing their products and asses the possibilities of
ancillarisation and export promotion of products.
R&D:To link R&D institutes with entrepreneurial activities for product innovation.
Training: To conduct artisan (skilled) training program
SISI – Small Industries Service Institutes
There are 58 SISIs all over the country including one in
each state capital.
Nature of support
Entrepreneurship development, consultancy are
training.
Objectives
To provide consultancy and training to small
entrepreneurs – both existing and prospective.
To serve as an interface between central and state
government.
To initiate entrepreneurial promotion programs.
SISI – Small Industries Service Institutes
Functions
To render technical support services.
To conduct entrepreneurship development programs.
To collect trade and market information and share it
with entrepreneurs.
To carry out modernization and implant studies.
To conduct state and district industrial potential
studies.
To provide consultancy services.
To provide training in various trade /activities.
NSIC – National Small Industries Corporation
NSIC is an enterprise under the union ministries of industries was
set up in1955 in Delhi to promote aid and facilitate the growth of
small scale industries in the country.
One of the oldest agencies set by the central government and is at
the forefront of the industrial development in the country.
It provides a wide range of services ,predominantly promotional in
character to SSIs.
Objectives
To promote aid and faster the growth of SSIs in the county with
focus on commercial products.
To enable the SSIs to gain competitive advantage and to contribute
effectively to the development of the economy.
To evolve special schemes to meet the needs of handicapped, SC,
ST entrepreneurs.
NSIC – National Small Industries Corporation
Functions
To provide machinery on hire purchase scheme to SSIs.
To provide equipment leasing facility
To help in exporting marketing of products of SSI.
To participate in bulk purchase program of government.
To develop prototype machines and equipments to pass on to SSIs
for commercial production.
To distribute basic raw material among SSIs through raw material
depots.
To help in development and up gradation of technology and
implementation of modernization programs of SSIs.
To impart training in various industrial estates.
To set up SSIs in other developing countries on turn-key basis
To undertakes the construction of industrial estates.
SIDBI – Small Industries Development Bank of India
For ensuring larger flow of financial and non-financial
assistance to small scale sector, the GOI set up SIDBI under
special act of parliament in 1989as a wholly owned
subsidiary of the IDBI.
Its head office is in Lucknow.
SIDBI is among the top 25 development banks in the world.
Nature of support
Financial services and other support services.
Objective
To promote finance and develop small scale sector in India
To coordinate the function of other institutes engaged in
similar activities.
SIDBI – Small Industries Development Bank
of India
Functions
To provide financial assistance to new projects, expansion
diversification projects, modernization projects.
To initiate steps for technological up gradation and
modernization existing units.
To promote rural industrialization
To provide channels for marketing SSI products in India and
abroad.
To foster HRD to suit the SSI sector needs.
To disseminate appropriate information to budding and
existing entrepreneurs.
Note: SIDBI has so far disbursed more than 50000 cr as
KSFC - Karnataka State Financial Corporation
Established in 1959 for extending financial assistance to set up tiny, small and
medium scale industrial units in the state.
KFSC has a decentralized system of working. Each district has a branch
office ,some have more than one.
Objectives
To provide term loans for purchase of land, buildings, machinery and other
facilities.
To promote self employment for professionally qualified men &women
entrepreneurs interested in starting their own project.
Financial assistance for expansion, modernization and mechanization in the
existing set up.
Function
Financial assistance for rehabilitation of sick units.
Financial assistance for transport vehicles and tourism related activities,
promotion of rural industries ,cottage industries and urban service centers.
Financial assistance for quality improvement and environmental control needs.
To arrange EDP(Entrepreneurship Development Program) and seminars for
upcoming young industrialists.
KSFC - Karnataka State Financial Corporation
Function
KSFC extends lease financial assistance and hire purchase
assistance for acquisition of machinery/transport vehicles.
KSFC has a merchant bank department which takes up the
management of public issues.
Loans are given based on securities like land , buildings ,
merchants , shares etc..
Since the coverage loans is spread to all sectors even small
transport owners and service centers take the assistance of SFC for
stating their units.
They have different schemes for women, ex service man, physically
handicapped, SC/ST to give them opportunity to become
entrepreneurs.
Apart from industries loans are given to transport operators,
hotels , hospitals, nurse homes, tourism ,facilities like lodges and
KSFC - Karnataka State Financial
Corporation
Problems
Since KSFC are started by respective state govt,usual problems
of state bureaucracy of procedures, delays,castism and
favoritism (preference) do occur.
In the state offices corruption and other malpractices
continue to bother the applicant.
In case repayments, very strict procedure are followed and
units are sealed.
VTU QUESTIONS
Discuss in detail on sources of finance for small scale industry.July16
Mention important central and Karnataka state government institutions providing
support to SSIs.Dec13,08,09
Explain the important factors in the selection of small scale industry site.July16
Write functions of District Industries Centres / Single window concept.Jul15,14,13,10,08
Dec11,13
Write a short notes on NSIC Ju15,10
What are the functions of TECKSOK and KSFC Jul13,12 Dec12,11
Explain the objectives and functions provided by TECKSOK and KSSIDC,.Jul15,14,13
Explain the objectives and functions provided by NSIC and
KSFC.Dec15 ,13,12,09,10,11,08 Jul09
Explain the objectives and functions of SIDBI Jul13 Dec09,11
Explain the objectives and functions of KIADB Jul1310,12,08 Dec09,11
Discuss various types of assistance provided by TECSOK,KSSIDC Dec12,Jul 10,12
Write a short notes on KSSIDC and SISI. Dec15,11
List some state level agencies which support SSI and explain one of them as to how they
assist the SSIs Dec14
What are the scheme of finance provided by SIDBI.Explain one of the schemes. Dec14
SFC,SIDO,KSIMC
