Institutions Supporting Ed

8/3/2019 Institutions Supporting Ed

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y A project report is a written document containingcomplete information about the proposed project in

summary form .


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y It act like a reference guide .

y It is a basis for obtaining loans .

y The government sanction license or certificate of

registration .

y It is like a controlling device .

y It supplies information .

y It is used as a basis by promoter to take investmentdecisions

y It enables to evaluate the soundness of the project


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y Name and address of the promoter / firm .

y Objective and scope of the project .

y MARKET STUDY :y Project report gives the analysis of the market in respect

of :y Size of the market for the proposed product .

y Present demand and supply position .

y

Future prospects of market share .y Number of suppliers / manufacturers and extend of competition

y Availability of intermediaries wholesalers and retailers .


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y The project report should provide details about thetechnology and tools needed and the sources of availability technical study coves areas like _

y Technical specifications of the product to bemanufactured .

y Raw materials including the sources of supply .


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y Manufacturing process .

y Plant and machinery .

y Tools and equipment etc .

y Requirement of land and building .y Location and layout of the plant .


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y The report indicate the financial aspect as :

y Total cost of the project .

y Preliminary expenses .

y

Source of finance- fixed and working capital . Source ofworking capital .

y Cost of production and profitability .

y Break- even point .

y Cost of fixed assets .

y Term loans.y Special incentives ,if any .

y Depreciation on fixed assets .


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y The report provides data of manpower as:

Number of skilled semiskilled and unskilled

personnel required in the production and otherdepartment .

Salary and wages structure .

Facilities for training and developments .


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It includes :

y Pricing strategies .

y Advertising strategies .

y Sales promotion technique .y Marketing channels .


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Introduction

y The terms Project Planning and Project Report are

commonly used in the process of starting of a newbusiness enterprise


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y Project planning is an integral part of projectmanagement that outlines the steps or the procedurefor executing the project . Like an architects plan ,

project planning ensures smooth and orderlyexecuting of the proposed business proposal .


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y It is useful to small and big , private and publicprofit and service type of organizations .

y It is done in the case of new project or expansion

or modernization of existing operation .y It helps to execute the project in a systematic

manner.

y It is a comprehensive term .

y It is the basis for the execution of the projectreport and covers technical , marketing , financialand managerial aspect .


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y Discovery of business proposal .

y Primary investigation .

y Technical and physical study .

y Feasibility study .y Final stage .


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y PROJECT REPORT

y 1. MEA NING: It is a written report containingcomplete information about the proposed projectin summary form .

y 2. WHO PREPARES : It is prepared by thepromoters with the help of experts .

y PROJECT PLANNING it is a written documentcontaining in detail the findings of technical ,financial and marketing feasibility studies . It isprepared by promoters or by lending institutions .


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y 3. WHEN PREPARED : It is prepared before feasibilityreport in the initial stage of project formulation .

y

4. BASE : It is prepared on the basis of project planning.

y FEASIBILITY REPORT It is prepared after the projectreport is ready . project report is the basis for

preparing feasibility report .


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y 5.USEFULNESS : It is like a reference guide during theexecution of project . It is a basis for obtaining loansfrom banks.

y FEASIBILITY REPORT It is useful to find outcommercial viability of the project i .e rate of successor failure of a project .


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y Introduction :- A project report is a descriptivestatement which provides the required detailinformation about the idea generated for theinvestment . A preliminary project report is a

statement of information related to - - - -y a) Investment , labour , and raw material requirement

y b) Plant and machinery requirement .

y c) Technological requirement .


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y d) Profitability of the project .

y e) Therefore , project report is a frame work ofbusiness requirement .

It gives information about -y Managerial ,

y Financial ,

y Economic ,

y Technological ,y Profitable aspect of the project .


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y Project report is one of the modern concept in the fieldof business today , before selecting or investing in anybusiness , the entrepreneur like to know the

requirement and the profit of the business . He wantsto know in advance what the government policy is , etcanswer to all this question are present in a reportcalled as project report .


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y Detailed information about the project is collected byan entrepreneur . The entrepreneur gets clearknowledge of all the formalities to be completed

before the unit is set-up . Preparation about obtainingthe land and shed , machinery , etc . Can be startedwell in advance as the project report aptly points outthese requirements . The project report instillsconfidence in the entrepreneur .


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y Even though , project report prepares the foundationof the project , it is flexible and can be changed as perthe requirement .

y

Following are the broad heads under which thecomplete information on relevant aspects is includedin the project report .

y 1. General information

y 2. Project description


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y 3. Market potential

y 4. Capital costs

y 5. Assessment of working capital

y 6. Other financial aspectsy 7. Economic and social variables


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Preparation of Project Report


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PRELIMINARY PROJECT REPORT

I-A-GENERAL INFORMATION :-

NAME OF THE ENTERPRISE P.C SHETTY BIRTH DATE - 09/04/1947

PROJECT - PAPER BOARD CARTOONS

LOCATION - URBA N AREA


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y TYPE OF ORGANISATION - SMALL SCALE INDUSTRY

y NAME OF THE FIRM - PRINT CRAFT.

y ADDRESS -A-49 , GROUND FLOOR,

PANALAL COMPOU

ND,L.B.S. MARG,

BHANDUP (W) .MUMBAI 400 078 .


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y I-B- EDUCATIONAL QUALIFICATION -

Degree Institute Major Subject Yr of Pass Mark

T.Y.B. Mangalore - 1967-68 2nd Class

University


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y DEGREE INSTITUTE MAJOR YEAR OF MARKSUBJECT PASS

S.S.S MANGLORE _ 1962-63 1stBOARD


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y I-C- SPECIAL TRANING

y Sr.No. Training Institute DurationAchievement

y 1. Computer nil 2 yrs Passed

bombay

2. Printing J.J 3 yrs Passed

Diploma school ofarts bombay


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I-D WORK EXPERIENCE .

PAST

Sr.No. Organism position natureduration

of work

1. R.M.D.C Product production 28yrsPvt. Ltd. Manager related


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y PRESENT

y Sr.No. Organi- Position Nature Durationsation of work

y

1. Print- Enter - printing 13 yrscraft preneur related cartons .


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y II DETAIL OF PROPOSED PROJECTS

y A- Production Programme:-

y Sr.No. Items total annual capa- turn-

qty - sales city over.1. Paper- Mthly - 80 10 60

board 6lacs lacs lacs lacscartons ctns after per yrly

Prodn mth


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II-B Machineries / Equipments

Sr. Name Descri No. Price Total Suppliers

No. Volt ption Reqd Value Add

1. Polar sheet 1 6 lakhs 6.50 L Polar4.H.P cutting

2. Heide- sheet 2 30 lacs 30 lacs Heide

lbarg Printing lbarg8.H.P


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y Sr. Name descri- No. Price Total Suppliers

no. Volt ption reqd Value Add

3. Bobst Dle 2 20 20 Bobst3.H.P Cutting lacs lacs Add: 4.ACME

Gheeing 1 10 10 ACME

4.H.P lacs lacs


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y II C RAW MATERIALSy SR.NO. PARTI- ANNUAL TOTAL REMARK

y CULAR REQUIR- ANNUALMENT EXPENSES

y 1. Paper 1200 24,000 S.T.C.Co.

board tonnes (Rs)Hyderabad 2. INK 1 2,50,000 a.Bal- Micro - Tonnes (Rs)

krishnaIN

KKalyan b.India LTD -Daman.

3. Pedility 1 tonne 60,000(Rs) Mumbai


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y II- D MAN - POWER

y Sr.No. Particulars Annual wages No.of RemarkWorkers

y 1. Skilled 9,60,000 (Rs) 10 _y 2. Semiskilled 4,80,000 (Rs) 8 _

y 3. Unskilled 5,40,000(Rs) 15 _

y 4. Office Staff 8,64,000(Rs) 5 _


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y The industry Print Craft is a self owned company , sothere is no need of any interference of government.And hence the question of incentives and subsidies donot arise . In the particular location mentioned onlyone company is of printing and pressing . And theother one more company is in Mulund then.


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A FIXED CAPITAL .

y Sr.No. Item Value (Rs)

y 1. Land and Building 60 Lakhs .

y 2. Machinery and Equipment 50 Lakhs.y 3. Furniture and Fixtures 60 Lakhs .

y Total = 170 Lakhs .


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y B WORKING CAPITAL

y Sr.No Item Duration Qty Value

y 1. Raw- 1 month 5 tons 3,34,000

materials ready stocky available.

y 2. Semi- 10 days 4 tons 12,00,00 finishedstock

goods


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y Sr.no. Item Duration Qty Value(Rs)

3. Finished 5 Days 2 tons 14,000

goods stock

y 4.Productionexpenses - - -


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y C-TOTAL COST OF PROJECT

y Sr.no. Particulars Value (Rs)

y Fixed capital _ 1,15,000

y Working capital _ 5,94,000y Preliminary expenses _ 20,000

y Total _ 7,29,000


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y D MEANS OF FINANCE

y Sr.no Particulars Value (Rs) Remark

y 1. Fixed capital 1,15,000 -

y 2. Working capital 5,94,000 -y 3.Own investment 2,00,000 -

y 4.Subsidy - -

y Total 9,09,000 -


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Sr.no Description Value (Rs)

Income Expense

1. Sales Revenue 8,00,000 _

2. Manufacturing Expenses4,00,000

3. Selling &Distribution Exp 1,00,000

4. Administrative Expenses 5,00,000

5. Interest 1,00,000

6. Depreciation 3,00,0007. Gross Profit 1,20,000

8. Income Tax 3,00,000

9. Net Profit

9,00,000


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y Do you own a house / Property etc _ Yes

y Own insurance Policy _ Yes

y Any interest in other firm _ Yes

y Do you belong to S.C/S.T /O.B.C/ General _General

y Present MonthlyIncome Rs _ 50,000(Approx)


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y VI REFERENCES :

y Sr.no :1

y Name Address Occupation

P.C.Shetty A-49,Ground floor, Printing 14th July,06Pannalal Compound ,Pressing of L.B.SMarg , Cartons Bhandup-(W) ,

Mumbai-78.

Place : Bhandup


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y Sr.no Name Address Occupation

y 2. Vittun J.B. Complex , Printing &

Shrinivas Blding No.A-23, Pressing of 14th

July,06 1st Floor , CartonsNirmal nagar ,

Mulund (W) ,

Mumbai 80.


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y Project report is a blueprint of the project . It givescomplete information about the technical , economic ,financial and managerial aspects of the project .

The important elements of a preliminary project report

are as follows :y General information about the entrepreneur

y Project description

y Market potential


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y Capital costs

y Assessment of working costs

y Other financial aspects

y Project monitoring & reviewingy Break even point


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CENTRAL LEVEL

SSI BOARD

KVIC

SIDO

NSIC

NSTEDB

NPC NISIET

NIESBUD

IIE

EDI

SSIs

STATE LEVEL

DIs

DICs

SFCs SIDCs/SIICs

SSIDCs

OTHERS

Industry Association

Non Governmental Organizations

R & D Laboratories


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y Statutory body created by an act of Parliamenty It is charged with planning, promotion, organization and

implementation of the program for the development of Khadiand other village industries in the rural areas in coordinationwith other agencies engaged in rural development

y

KVICs functions also comprise building up a reserve of rawmaterials and implements for supply to producers, creationof common service facilities for processing of raw materialsand provision of marketing of KVIC products

y KVIC is entrusted with the task of providing financial

assistance to institutions or persons engaged in thedevelopment and operation of Khadi and village industriesand guide them through supply of designs, prototypes andother technical information


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y Established in 1954 on recommendation of Ford Foundation

y Over the years, it had seen its role evolve into an agency foradvocacy, handholding and facilitation for the smallindustries sector

y SIDO provides facilities for testing, tool mending, training forentrepreneurship development, preparation of project andproduct profiles, technical and managerial consultancy,assistance for export, pollution and energy audits, and soon

y SIDO provides economic information services and advises

the government in policy formulation for the promotion anddevelopment of SSIs


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y Established in 1955 by GOI with the main objectives to

promote, aid and foster the growth of SSIs in the countryy Over four decades of transition and growth in the SSI sector,

NSIC has provided strength through a progressive attitude ofmodernization, upgradation of technology, qualityconsciousness, strengthening linkages with large andmedium-scale enterprise and boosting exports of productsfrom small enterprises

y Main services provided by NSIC are: -Machinery and Equipment (Hire Purchase / Lease scheme) -

Financial Assistance Scheme - Assistance for Procurement of Raw Material -Government Store Purchase Program -Technology Transfer Centre (TTC) -Marketing Assistance


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y Established in 1982 by GOI, is an institutional mechanism tohelp promote knowledge-driven and technology-intensiveenterprises

y Major objectives are:

- promote and develop high-end entrepreneurship for S&Tmanpower as well as self-employment by utilizing S&Tinfrastructure and by using S&T methods- facilitate and conduct various informational services relating topromotion of entrepreneurship -

network agencies of support system, academic institutions andR&D organizations to foster self-employment using S&T withspecial focus on backward areas- act as a policy advisory body with regard to entrepreneurship


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y Autonomous institution functioning under the overall supervision ofthe Ministry of Industry, GOI

y Primary objective is to act as a catalyst in enhancing the productivityof all sectors of the economy, including industry and agriculture

y Administered by a tripartite Governing Council (GC) which has equalrepresentation from the government, industry and trade unions

y Active in the field of consultancy and training and has a number ofspecialized divisions to provide tailor-made solutions to agricultureand industry. These divisions, manned by trained consultants, dealwith issues related to industrial engineering, plant engineering,

energy management, HRD, informal sector, agriculture and so ony NPC is a member of the Asian Productivity Organization (APO),

Tokyo, an umbrella body of all productivity councils in Asian region

y To channelise expertise of NPC to small-scale and informal sector,SIDBI has tied-up with NPC for enhancing technology in small units


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y Set up in early 1950s, NISIET acts an important resourceand information centre for small units and undertakesresearch and consultancy for small industry development

y An autonomous arm of the Ministry of Small ScaleIndustries, the institute achieves its objectives throughtraining, consultancy, research and education, to extensionand information services

y In 1984, UNIDO has recognized NISIET as an institute of

meritorious performance under its Centre of ExcellenceScheme to extend aid


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y NIESBUD is an autonomous body under the administrativecontrol of the Office of the DC(SSI)

y NIESBUD established in 1983 by the Ministry of Industry, GOI,

as an apex body for coordinating and overseeing the activitiesof various institutions/agencies engaged in EntrepreneurshipDevelopment particularly in the area of small industry andbusiness

y The policy, direction and guidance to the institute is provided byits Governing Council whose chairman is the Minister of SSI.

y Besides conducting national and international training programs,the institute undertakes research studies, consultancyassignments, development of training aids, etc.


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y DirectorateofIndustries (DIs) At the State level, the Commissioner/

Director of Industries implements policies for the promotion anddevelopment of small-scale, cottage, medium and large scale industries.The Central policies for the SSI sector serve as guidelines but each Stateevolves its own policy and package of incentives. The Commissioner/Director of Industries in all the States/UTs, oversee the activities of fieldoffices, that is, the District Industries Centers (DICs) at the district level

y District Industries Centers (DICs) In order to extend promotion of small-scale and cottage industries beyond big cities and state capitals to districtheadquarters, DIC program was initiated in May, 1978, as a centrallysponsored scheme. DIC was established with the aim of generating greater

employment opportunities especially in rural and backward areas in thecountry. At present DICs operate under respective Sate budgetaryprovisions. DICs extend services of the following nature (i) economicinvestigation of local resources (ii) supply of machinery and equipment (iii)provision of raw materials (iv) arrangement of credit facilities (v) marketing(vi) quality inputs (vii) consultancy


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State Financial Corporations (SFCs) Main objectives are to

finance and promote small and medium enterprises in theirrespective states for achieving balanced regional growth,catalyze investment, generate employment and widenownership base of industry. Financial assistance is provided byway of term loans, direct subscription to equity/debentures,

guarantees, discounting of bills of exchange and seed capitalassistance. SFCs operate a number of schemes of refinance ofIDBI and SIDBI and also extend equity type assistance. SFCshave tailor-made schemes for artisans and special targetgroups such as SC/ST, women, ex-servicemen, physically

challenged and also provide financial assistance for small roadtransport operators, hotels, tourism-related activities, hospitalsand so on. Under Single Window Scheme of SIDBI, SFCs havealso been extending working capital along with term loans tomitigate the difficulties faced by SSIs in obtaining working

capital limits on time


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y State IndustrialDevelopment / Investment Corporation (SIDC/SIIC)

Set up under the Companies Act, 1956, as wholly owned undertakings of

the State governments, act as catalysts in respective states. SIDC helps in

developing land providing developed plots together with facilities like

roads, power, water supply, drainage and other amenities. They also

extend assistance to small-scale sector by way of term loans, subscription

to equity and promotional services. 11 out of 28 SIDCs in the country also

function as SFCs and are termed as Twin-function IDCs


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y StateSmall IndustrialDevelopment Corporations (SSIDC)

Established under Companies Act, 1956, as State governmentundertaking, caters to small, tiny and village industries in

respective states.

y

Being operationally flexible undertakes the activities like(i) procure and distribution of scarce raw materials, (ii) supply of

machinery to SSI units on hire-purchase basis, (iii) product

marketing assistance, (iv) construction of industrial estates,

allied infrastructure facilities and their maintenance (v) extending

seed capital assistance on behalf of State government and (vi)

providing management assistance to production units


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y State Infrastructure Development Corporations

y State Cooperative Banks

y Regional Rural Banks

y State Export Corporationsy Agro Industries Corporations

y Handloom and Handicrafts Corporations


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National Bank for

Agriculture and

RuralDevelopment

(NABARD)

Set up in 1982, provide refinance assistance to State Cooperative Banks, Regional Rural

Banks, and other approved institutions for all kinds of production and investment credit

to SSIs, artisans, cottage and village industries, handicrafts and other allied activities.Helps SSI entrepreneurs to get loan for setting up SSIs in any part of the country

Housing and

Urban

DevelopmentCorporation Ltd.

(HUDCO)

Wholly owned company of GOI, incorporated Apr.1970, as a Pvt. Ltd. Co. and

subsequently, converted into a Public Ltd. Co. in 1986. Primary objective is to provide

assistance for urban, social sector infrastructure, and the creation of housing facility,of late, to create SSI infrastructure. Also extends assistance for the promotion of

building material industries, besides imparting consultancy, training and technical in

related matters.

TechnicalConsultancy

Organizations

(TCOs)

Set up by all-India financial institutions during 70s and 80s to cater to consultancy

needs of SMEs and new entrepreneurs. Services include preparing project profiles andfeasibility studies, undertaking industrial potential surveys, identifying potential

entrepreneurs and provision of technical and management assistance to them,

undertake market research and surveys for specific products, carrying out energy

audit and energy conservatism assignment, project supervision, taking up assignments

on a turnkey basis, undertaking export consultancy for EOU


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y Constituted in 1954 to facilitate the coordination and inter-

institutional linkages for the development of SSI sector

y The Board is an apex advisory body constituted to render advice

to the government on all issues pertaining to the SSI sector

y

The office of the Development Commissioner (Small-ScaleIndustry) serves as the secretariat for the board

y The Board operates broadly in the following areas:

- Policies & programs

- Development of industries in specific region like Northeast- Ancillary development, quality improvement, mktg. assistance

- Credit facilities, taxation and modernization

- Industrial sickness

Documents

Institutions Supporting Ed