Government Support for small scale Industries

Small scale Industries is play important role for economic development in country. Therefore, the government is promoting small scale industries and making proper arrangements for their development.

In this article we share all the topic “What are the government doing to develop small scale enterprises. and how Government Support for small scale Industries“

Government Support for small scale Industries

Government has to many board appointed for development of SSI in India.

National Small Industries Corporation (NSIC)
Small Industries Development Organization (SIDO)
Small Industries Service Institutes (SISI)
Small scale Industries Board (SSIB)
State Small Industries Development Corporations (SSIDC)
District Industries Centers (DIC)

National Small Industries Corporation (NSIC) :-

The national Small Industries Corporation (NSIC), an enterprise under the union ministry of industries was set up in 1955 in New Delhi to promote aid and facilitate the growth of small scale industries in the country.

NSIC offers a package of assistance for the benefit of small-scale enterprises.

Single point Registration :- Registration under this scheme for participating in government and public sector undertaking tenders.
Information Service :- NSIC continuously gets updated with the latest specific information on business leads, technology, and policy issues.
Raw material Assistance :- NSIC fulfills raw material requirements of small-scale industries and provides raw material on convenient and flexible terms.
Meeting Credit Needs of SSI :- NSIC facilities of term loan and working capital credit limit of small enterprise from banks.
Performance and credit Rating :- NSIC gives credit rating by international agencies subsidized for small enterprises up to 75% to get better credit terms from banks and export orders from foreign buyers.
Marketing Assistance Progamme :- NSIC participates in government tenders on behalf of small enterprise to procure orders for them.

Small Industries Development Organization (SIDO) :-

SIDO is created to development of various small scale units different areas. SIDO is a subordinate office of department of SSI and ARI. It is a nodal agency for identifying the needs of SSI units coordinating and monitoring the policies and programmes for promotion of the small industries.

The activities of SIDO are divided into three categories as follows:-

(a) Coordination Activities of SIDO

To coordinate various programmers and policies of various state governments pertaining to small industries.
To maintain relation with central industry ministry, planning commission, state level industries ministry and financial institutions.
Implement and coordinate in the development of industrial estates.

(b) Industrial Development Activities of SIDO

Develop import substitutions for components and products based on the data available for various volumes-wise and value-wise imports.
To give essential support and guidance for the development of ancillary units.
To provide guidance to SSI units in terms of costing market competition and to encourage them to participate in the government stores and purchase tenders.
To recommend the central government for reserving certain times to produce at SSI level only.

( C) Management Activities of SIDO

To provide training, development and consultancy services to SSI to develop their competitive strength.
To provide marketing assistance to various SSI units.
To assist SSI units in selection of plant and machinery, location, layout design and appropriate process.
To help them get updated in various information related to the small scale industries activities.

Small Industries Service Institutes (SISI)

The small industries service institutes have been set up in state capitals and other places all over the country to provide consultancy and training to small entrepreneurs both existing and prospective.

The main functions of SISI include.

To serve as interface between central and state government.
To render technical support services.
To conduct entrepreneurship development programmes.
To initiate promotional programmes.

The SISIs also render assistance in the following areas:

Economic consultancy/information/EDP consultancy.
Trade and market information.
Project profiles.
State industrial potential surveys
District industrial potential surveys.
Modernization and in plant studies.
Workshop facilities.
Training in various trade/activities.

Small scale Industries Board (SSIB)

The government of India constituted a board, namely, Small scale Industries Board (SSIB) in 1954 to advice on development of small scale industries in the country.

The SSIB is also known as central small industries board. The range of development work in small scale industries involves several departments/ministries and several organs of the central/state governments.

The industries minister of the government of India is the chairman of the SSIB.

The SSIB comprises of 50 members including state industry minister, some members of parliament and secretaries of various departments of government of India, Financial institutions, public sector undertakings, industry associations and eminent experts in the field.

State Small Industries Development Corporations (SSIDC)

The SSIDC were sets up in various states under the companies act 1956, as state government under the companies act 1956, as state government undertakings to cater to the primary development needs of the small tiny and village industries in the state/ union territories under their jurisdiction.

The important functions performed by the SSIDCs include:

To procure and distribute scarce raw materials.
To supply machinery on hire purchase system.
To provide assistance for marketing of the products of small-scale industries.
To construct industrial estates/sheds, providing allied infrastructure facilities and their maintenance.
To extend seed capital assistance on behalf of the state government concerned provide management assistance to production units.

District Industries Centers (DIC)

The District Industries Centers (DIC’s) programme was started in 1978 with a view to provide integrated administrative framework at the district level for promotion of small scale industries in rural areas.

DIC’s are the implementing arm of the central and state governments of the various schemes and programmes.

Registration of small industries is done at the district industries center and PMRY (Pradhan Mantri Yojana) is also implemented by DIC.

Management of DIC is done by the state government. 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 .
To guide the entrepreneurs in matters relating to selecting the most appropriate machinery and equipment, sources of its 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 appraise the worthless of the project-proposals received from entrepreneurs.
To help the entrepreneurs in obtaining required licenses/permits/clearance.
To assist the entrepreneurs in marketing their products and assess the possibilities of ancillarization.
To conduct product development work appropriate to small industry.
To help the entrepreneurs in clarifying their doubts about the matters of operation of bank accounts, submission of monthly, quarterly and annual returns to government departments.
To conduct artisan training programme.
To act as the nodal agency for the district for implementing PMRY .
To function as the technical consultant of DRDA in administering IRDP and TRYSEM programmes.

So the role of DIC’s in enterprise building and developing small scale sector is of much significance and it is important factor of Government Support for small scale Industries.

Government Small Scale Industries policy Framework- Latest Amendment

In line with new economic policies, a policy document for SSI was announced on 6^th August 1991.

It continued priority sector lending to SSI by banks/Financial Institution
Excise exemption scheme.
Reservation of items for exclusive production
Price and purchase preference.
Uniform package of incentives of the entire sector

It introduced new measures like :

Removal of location restrictions
Enhancement of coverage, limits
Shift towards infrastructural development support
Inclusion of services in this sector
Allowing equity investment in SSI
Shift from protection/regulation to promotion of equality, technology and deficiency
Substantial de-regulation and simplification of rules and procedures.

At last words In this article Government Support for small scale Industries, Government has many support to small entrepreneurs to develop their business. and every entrepreneurs should have always start their business according to government rules and regulations so they have get benefits from government policy.