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UNIT 7

INSTITUTIONAL SUPPORT

Presentation
By
Dr.V.S.Krushnasamy M.Tech.,Ph.D
Associate Professor
Department of EIE
DSCE

Topics going to be discuss

Different schemes
TECKSOK
KIADB
KSSIDC
KSIMC
DIC Single window
agency

SISI
NSIC
SIDBI
KSFC

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
To promote consultancy for mergers and take over.

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
PSUs
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 DICs 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.
To finance industrial infrastructure projects.

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 financial assistance.

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 guest houses etc.

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