Unit vii institutional support

Management & Entrepreneurship

(Course Code:10AL51)

Department of IE & M

JSS Academy of Technical Education, Bengaluru-560060

Support and Services

CHAPTER 7: Institutional Support

Outline - Different Schemes

TECSOK

KIADB

KSSIDC

KSIMC

DIC Single Window Agency

SISI

NSIC

SIDBI

KSFC

Introduction – Institutional Support

Every kind of business requires adequate amount of finance for its start.

Any economic activity requires prior built-up Infrastructural facilities for its start.

Creation of infrastructural facilities requires huge funds which small entrepreneurs can not

afford or are always found short of.

ENTREPRENEUR NEEDS FINANCE

To start an Industry.

For acquiring Fixed Assets.

Developing Product, Men and Machines at Work.

Encourage Management to make Progress.

Introduction – Need for Institutional Support

Introduction

Government and Non Government Assistance

Central and State Governments provides various kinds of supports and facilities to

help the small entrepreneurs which helps them :-

• To establish their industry In market & Grow Bigger.

A separate ministry of Small Scale Industries was created on October 14,1999

to focus attention of SSI (Small Scale Industries) sector.

• Now renamed as the Ministry of Micro, Small and Medium Enterprises

(M/OMSME for all matters relating to Micro, Small and Medium Enterprises).

Introduction – Govt. and Non Govt. Assistance

Before 1999, the same Ministry was known by name of Small Scale Industries

and Agro & Rural industries.

Work of Ministry of SSI – Initiates various

i) Policy measures

ii) Programmes

iii) Schemes for the Promotion of SSIs (Small Scale Industries)

Introduction – Govt. and Non Govt. Assistance

Matrix of Institutional Support Structure

SSI support Agencies and Specialized Services Support Agencies

Central Government

1. SSI Board 2. SIDO

3. SISIs 4. PPDCs

5. RTCs 6. CEFTIs

7. EDIs 8. NSIC

9. SIDBI

State Government

1. Dis 2. DICs

3. SFCs 4. SSIDCs

5. TCOS

Others

1. Industry Associations

2. Non-Government

Organization

SSIs

Providers of Finance & Specialized Support Services

FINANCE

APEX

1.Commercial Banks

2.RRBs

3.Coperative Banks

State Level

1.SFCs

2.SIDCs

3.SSIDCs

OTHERS

1.NABARD

2.NSIC

TECHNOLOGY

UPGRADATION• NSIC

• SIDO

• SISIs

• RTCs

• PPDCs

• TBSE

INDUSTRIAL INPUTS

• NSIC

• SSIDs

• DICs

MARKETING1.SIDO 4. SISIs

2.NSIC 5. EICs

3.SSIDCs 6. SECs

TECHNICAL TRAINING1. SIDO 5. DICs

2. SISIs 6.RTCs

3. TCOs 7. GFTISs

4. PPDCs 8. Tool Rooms

ENTREPRENERURIAL DEVELOPMENT

• SIDO

• EDII

• NIESBUD

• EDIs

• SISIs

SSIs

TECSOKTechnical Consultancy Services Organisation of Karnataka

http://www.tecsok.com(A Government of Karnataka Organisation)

Technical Consultancy Services Organisation of Karnataka (TECSOK)

About TECSOK

• 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 like;

• Man power planning

• Budgetary control systems

• Mergers and acquisitions

• Investment opportunities

• Technology transfers

• Diagnostic studies

• Feasibility-studies

• Market research

• Valuation of assets

• Environment impact studies

• Energy management and audit

• Corporate plan

• Reorganization & Restructuring of enterprises

• Also designing and organizing training programmes in all related areas.

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

methods.


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.

A Powerhouse of Expertise


Services

• 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 turn key assistance.

• Reorganization and restructuring of enterprises.

• Valuation of assets, man power planning & budgetary control system.


Services

• Energy management & audit, corporate plan, technology transfer.

• Diagnostic studies and rehabilitation of sick industries.

• Management studies, company formation, corporate plan, enterprise restructuring.

• Consultancy for agro-base industries as a Nodal Agency of Government of India.

• Consultancy for merger/takeovers, Infrastructure development project reports.

Technical Consultancy Services Organisation of Karnataka

Clients of TECSOK

Commerce and Industries Department, Govt. of Karnataka.

Fisheries, Govt. of Karnataka.

Sericulture, Govt. of Karnataka.

Tourism, Govt. of Karnataka.

Rural Development and Panchayat Raj. Govt. of Karnataka.

Women and children Development, Govt. of Karnataka.

KIADB

http://www.kiadb.in/

Karnataka Industrial Areas Development Board (KIADB)

A Premier Industrial Land Provider


About KIADBKIADB - As a Premier Industrial Land Provider

Karnataka Industrial Areas Development Board (KIADB) is a statutory body, constituted under

sec.5 of Karnataka Industrial Areas Development Act (KIAD Act)-1966.

• To promote rapid and orderly establishment and development of industries.

• 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 has so far developed 157 industrial areas in 29 Districts in the State covering an

extent of 55,957 acres, and acquired land for nearly 426 Single Unit Complexes covering

an extent of 52,904 acres ensuring balanced industrial development in all regions with well

thought of infrastructures and unique features.


About KIADBKIADB - As a Premier Industrial Land Provider


KIADB - As a Premier Industrial Land Provider

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.


KIADB - As a Premier Industrial Land Provider


KIADB – Functional Wings


KIADB – Functional WingsAcquisition

• The Acquisition section conducts the proceedings for acquisition of land as per KIAD Act of 1966

and hand over them to KIADB.

• Special Deputy Commissioner heads acquisition wing and is assisted by Special Land

Acquisition officers at zonal level.

• KIADB identifies land for development of industrial areas, for single unit complexes, projects &

schemes envisaged by Government.

• On ascertaining the suitability of land, notifications under relevant provisions are issued under

KIAD Act of 1966 with approval of Government.


KIADB – Functional WingsEngineering

Engineering section prepares a design and development plan taking into

consideration different parameters like:

• Topography of the area,

• Infrastructure requirements,

• Statutory and Regulatory requirements.

• Co-ordination with other agencies.

Chief Development Officer and Chief Engineer heads Engineering section assisted by

Development Officers at the Zonal Offices.

This wing also provides services to the allottees by

• Approving building plans,

• Providing water supply connections,

• NOC’s for obtaining power connections,

• Providing infrastructure facilities

• Addressing the grievances of allottees in the related matters.


KIADB – Functional WingsEngineering


KIADB – Functional WingsAllotment

This section is headed by Secretary and Joint Director assisted by Assistant Secretaries at H.O

& Zonal Offices.

• Requests of entrepreneurs in the matters of leasing,

• Documentations,

• Issuance of NOC’s for financial assistance,

• Needful clearances (CC) for change in activity,

• Change in constitution,

• Maintenance of payment records of allottees

• Issuance of absolute sale deed etc., are attended by allotment section.


KIADB – Functional WingsProjects

• This Section headed by the General Manager who look after the Special

Projects announced by the Govt. of Karnataka & Govt. of India.


KIADB – Functional WingsFinance and Accounts

Controller of Finance heads the Accounts Section assisted by Accounts Officer, Assistant Accounts

Officer and Assistant Secretary (A&MIS).

This wing of KIADB is engaged in,

Drawing of budgetary proposals

Project financing and planning

Monitoring and maintaining the process related to mobilization of finance for projects.

Preparation of final accounts.

other activities of KIADB


KIADB – Functional WingsAdministration

General Manager is the head of this Department and is assisted by Assistant Secretary (Admn.).

This section has overall responsibility of,

General administration

Human resources management

Other related matters.

This section ensures that the employees of this board are abreast with professionalism by

providing training, refresher courses etc., for better productivity in the Organization.


KIADB – Key Projects

Special Economic Zone (SEZ)

A special economic zone (SEZ) is a specifically delineated duty free enclave

deemed to be foreign territory for the purpose of trade operations, duties and

tariff.

Sl.No. Special Economic Zones Extent (In acres)

1 Textile SEZ, Hassan 474.40

2 Pharmaceutical SEZ, Hassan 125.00

3 IT/ITES SEZ, Mangalore, Dakshina Kannada District 89.19

4 Aerospace related SEZ, Devanahalli, Bengaluru Rural 252.00

5 IT/ ITES SEZ, Gamanagatti, Dharwad 30.00

KIADB has set up sector specific SEZ’s in the following places:


KIADB – Key ProjectsSpecial Economic Zone (SEZ)

Clients of KIADB

KSSIDC

Karnataka State Small Industries Development Corporation Ltd (KSSIDC) http://www.kssidc.co.in/

Karnataka State Small Industries Development Corporation Ltd (KSSIDC)

• KSSIDC, established on 29th April 1960.

• The registered office of the Company started functioning at Bengaluru in the State of Karnataka.

• The Company framed comprehensive and well-defined Memorandum of Association and

Articles of Association.

• Which permit the Corporation to take up any activity aimed at the rapid development of small-

scale industry, subject to the guidelines issued by the Government from time to time.

About KSSIDC


Mission

The Corporation’s principal objective is to promote and develop Small Industries in the State.

• Construction and utilisation of infrastructure, especially in backward areas.

• Procurement and marketing of Raw Materials, technical support and assistance.

• A concern for results, emphasis on quality and timely work and willingness to understand

the problems of entrepreneurs.

VisionAn Industrially prosperous Karnataka


• KSSIDC (until 1960 Mysore Small Industries Corporation-MSIC) is rendering services to the

small sector in the State for more than 50 years.

The Corporation has its own building in the Rajajinagar Industrial Estate.

From 1960, KSSIDC took over the activities relating to:

• Management and setting up of industrial estates.

• Distribution of raw materials.

• The Corporation started with an initial share capital of Rs.10 lakhs.

• The capital of the Company for the year ended as on 31st March 2015 is Rs.2602.36 Lakhs.

The Corporation started with the following as its Main Services:

• Establishment and Management of Industrial Estates.

• Procurement and distribution of raw materials.

• Assistance towards marketing.

• Dissemination of information by participating in the internal and international exhibitions.

• Supply of machinery under Hire Purchase Scheme.

• Providing Guidance to SSI Entrepreneurs.

• Providing Technical Library facilities.



Activities of Engineering Wing

• Conceptualizing, Designing, Planning, Constructing and Establishing Industrial Estates in

State.

• Planning and Constructing Live cum Work Sheds for artisans Engaged in Handloom,

handicraft, Leather Industries and Power Loom Development.

• Provide Necessary infrastructure for the Government’s “VISHWA PROGRAMME”.

• Planning and Constructing Ancillary Industrial Estates in the vicinities of Large Industries.

• Planning and Constructing Flatted Factory Sheds in Electronic city and Peenya Industrial

Estates

• Maintenance of Industrial Estates.

KSIMCKarnataka Small Industries Marketing Corporation Limited (KSIMC)

Karnataka Small Industries Marketing Corporation Limited (KSIMC)

• Karnataka Small Industries Marketing Corporation Limited is a Public incorporated on 12

September 1984.

• It is classified as State Govt. company.

• It is involved in Legal, accounting, book-keeping and auditing activities; tax consultancy; market

research and public opinion polling; business and management consultancy

As per records from Ministry of Corporate Affairs (MCA), its balance sheet was last filed on 31

March 2009.

Current status of Karnataka Small Industries Marketing Corporation Limited is - Amalgamated.

DIC - Single Window Agency

District Industries Centres (DIC)

In each district one agency to deal with all requirements of small and village Industries. This is

called “District Industries Centre”


The District Industries Centres have undertaken various programmes for investment promotion

at the grass-root level such as a organizing,

• Seminars/ workshops.

• Extending support for trade fairs

• Exhibitions organized by various Industries associations.

• All the services and support required by for MSME units under the single roof of the

District Industries Centre.


The main functions of DIC are:

• To prepare and keep model project profiles for reference of the entrepreneurs.

• To prepare action plan to implement the schemes effectively already identified.

• 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.

• To guide entrepreneurs in matters relating to selecting the most appropriate machinery and

equipment, sources of it supply and procedure for importing machineries.

• To provide guidance for appropriate loan amount and documentation.

• To assist entrepreneurs for availing land and shed equipment and tools, furniture and

fixtures.


• To help the entrepreneurs in obtaining required licenses/permits/clearance.

• To conduct artisan training programme.

• To act as the nodal agency for the district for implementing PMRY (Prime Minister Rojgar

Yojana).

• To help the specialized training organizations to conduct Entrepreneur development

programmes.

SISISmall Industries Service Institute (SISI)

• The institute located on West of Chord Road, Rajajinagar, was set up by the GOI.

• To supplement the activities of the State government in promoting small scale industries.

• Needs of existing/prospective entrepreneurs in the small scale sector

• The SISI network in Karnataka State is a part of the national network under the Small

Industries Development Organisation (SIDO).

Small Industries Service Institute (SISI)

SISI renders technical consultancy services in the field of:

• Mechanical engineering, Chemical engineering, Glass and Ceramics, Electronics, Leather and

Metallurgy;

Management services in areas like:

• Personnel, Finance, Marketing, Quality control, Economic information.

• Export promotion services to the small scale industries.


SISI conducts specific technical training programmes for the benefit of prospective

entrepreneurs in various fields like:

• Machinist trade, Scientific glass blowing, Lens grinding, Decoration of glass and Ceramic

ware, Plaster toy making, Leather utility articles, T.V. and radio repairing, soldering and de-

soldering techniques.

• Manufacture of small transformers and coil winding, carpentry, hosiery and knitting and blue

print reading


NSICNational Small Industries Corporation (NSIC)

http://www.nsic.co.in

National Small Industries Corporation (NSIC)

• National Small Industries Corporation (NSIC), is an ISO 9001-2008 certified Government of

India Enterprise under Ministry of Micro, Small and Medium Enterprises (MSME).

• NSIC has been working to promote, aid and foster the growth of micro, small and medium

enterprises in the country.

• NSIC operates through countrywide network of offices and Technical Centres in the Country.

• NSIC has also set up Training cum Incubation Centre managed by professional manpower.


Vision :

To be premier organization fostering the promotion & growth of Micro, Small and

Medium Enterprises in the country.

Mission :

To enhance the Competitiveness of Micro, Small and Medium Enterprises by

providing integrated support services encompassing, Marketing, Finance,

Technology and other Services.


Schemes of NSIC

• NSIC facilitates Micro, Small and Medium Enterprises with a set of specially

tailored scheme to enhance their competitiveness.

• NSIC provides integrated support services under Marketing, Technology,

Finance and other Support service.


Marketing Support

NSIC acts as a facilitator and has devised a number of schemes to support

enterprises in their marketing efforts, both domestic and foreign markets.

These schemes are briefly described as under :

Performance and Credit Rating Scheme for small industries

Technology Support


Marketing Intelligence

Buyer-Seller meets

Software Technology Cum Business Parks

Incubation of unemployed youth for setting up of New Micro & Small enterprises

Exhibitions and Technology Fairs

Single point Registration for Government Purchase

Consortia and Tender Marketing

Credit Support

Financing for procurement of Raw Material (Short term)

Financing for Marketing Activities (Short term)

Finance through syndication with Banks


Consortia and Tender Marketing


• NSIC applies the tenders on behalf of single MSE/Consortia of MSEs for securing

orders for them. These orders are then distributed amongst MSEs in tune with their

production capacity.

Single point Registration for Government Purchase

• Issue of the Tender Sets free of cost.

• Exemption from payment of Earnest Money Deposit (EMD).

• NSIC operates a single Point Registration Scheme (SPRS) under the Government

Purchase Programme.

Marketing Intelligence

• Collect and disseminate both domestic as well as international marketing intelligence for the

benefit of MSMEs.


Exhibitions and Technology Fairs

• To showcase the competencies of Indian SSIs and to capture market opportunities.

Buyer-Seller meets

Bulk and departmental buyers such as the Railways, Defence, Communication departments

and large companies are invited to participate in buyer-seller meets to enrich small

enterprises knowledge regarding terms and conditions, quality standards, etc. required by the

buyer.


International Consultancy Services


NSIC has acquired various skill sets in the development process of small enterprises. The

inherent skills are being networked to offer consultancy services for other developing countries.

The areas of consultancy are as listed below:

1.Capacity Building

2.Policy & Institutional Framework

3.Entrepreneurship Development

4.Business Development Services

Name of the Centre Focus area

Chennai Leather & Footwear

Howrah General Engineering

Hyderabad Electronics & Computer Application

New Delhi Machine Tools & related activities

Rajkot Energy Audit & Energy Conservation activities

Rajpura (Pb) Domestic Electrical Appliances

Aligarh (UP) Lock Cluster & Die and Tool making

NSIC Technical Services Centres are located at the following places


SIDBISmall Industries Development Bank of India (SIDBI)

http://www.sidbi.com/

Small Industries Development Bank of India (SIDBI)

• Small Industries Development Bank of India (SIDBI), set up on April 2, 1990

under small industries development bank of India act.

• It is the Principal Financial Institution for the Promotion, Financing and

Development of the MSME sector and for Co-ordination of the functions of the

institutions engaged in similar activities.

Vision

To emerge as a single window for meeting the financial and developmental

needs of the MSME sector to make it strong, vibrant and globally competitive, to

position SIDBI Brand as the preferred and customer - friendly institution and for

enhancement of share - holder wealth and highest corporate values through

modern technology platform.


Mission

"To facilitate and strengthen credit flow to MSMEs and address both financial and

developmental gaps in the MSME eco-system“


Business Domain of SIDBI

The business domain of SIDBI consists of Micro, Small and Medium Enterprises (MSMEs).

Contributing significantly to the national economy in terms of production, employment and exports.

MSME sector is an important pillar of Indian economy as it contributes greatly to the growth of

Indian economy with:

A vast network of around 3 crore units,

Creating employment of about 7 crore,

Manufacturing more than 6,000 products

Contributing about 45% to manufacturing output and about 40% of exports, directly and

indirectly.


Functions of SIDBI

To initiate steps for technological upgradation and modernization of existing

units.

To expand the channels for marketing the products of SSI sector in domestic

and international markets.

To promote employment oriented industries especially in semi-urban areas to

create more employment opportunities.

KSFCKARNATAKA STATE FINANCIAL CORPORATION (KSFC)

http://www.ksfc.in

KARNATAKA STATE FINANCIAL CORPORATION (KSFC)

KSFC is one of the fast track term lending financial institutions in the country with assistance

to over 1,70,355 units amounting to nearly Rs 14,542 crore over the last 57 years in the State

of Karnataka.

KSFC is one of the robust and professionally managed State Financial Corporations

The KSFC was established by the government of Karnataka in 1956 under the state financial

corporation act 1951 for extending financial assistance to set up tiny, small and medium scale

industrial units in Karnataka.

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;

(vii) In tune with the declared national priorities.



Loan Schemes of KSFC(1) Composite loan scheme(2) Disabled entrepreneurs loan scheme.(3) Scheduled cast and scheduled tribe’s loan scheme.(4) Ex-service men loan scheme.(5) National equity fund scheme.(6) Mahila Udyama nidhi loan scheme.(7) Single window loan scheme.(8) Transport loan scheme.(9) Computer loan scheme.(10) Modernization loan scheme.(11) Diesel generator loan scheme.(12) Equipment finance loan scheme.

(13) Tourism related activities loan scheme.(14) Hospital/nursing / medical store loan scheme.(15) Electro-medical equipment loan scheme.(16) Assistance for acquiring indigenous or imported second-hand machinery.(17) Qualified professionals loan scheme.(18) Scheme of assistance for acquisition of ISO 9000 series of certification.(19) Hotel /mobile canteen loan scheme.(20) Industrial estate loan scheme.(21) Loan scheme for office automation.(22) Loan scheme for training institution.(23) Loan scheme for private software technology parks.(24) Loan scheme for commercial complexes.(25) Industrial estate loan scheme.(26) Loan scheme for ready-built office/construction of new office building.(27) Loan scheme for acquisition of land/building/commercial space.(28) Loan schemes for marketing related activities.


Loan Schemes of KSFC