Unit 5

1)
INSTITUTIONS SUPPORTING
ENTREPRENEURS

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What do you mean by the term Institutional
Support for Entrepreneur ?

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 What do you mean by the term Institutional
Support for Entrepreneur ?
• The term institutional support refers to the part of
economic environment of business, consisting of
authorities and institutions whose decisions and
active support in the form of laws, regulation,
financial & non-financial, technical, administrative
help etc.., adds to the functioning of any
entrepreneurial venture.

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• The institutions could be government,
government owned, statutory, semi
autonomous or autonomous, public, private,
individually owned firms etc..,

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• The activities of support - financing,
marketing, project preparation, training,
upgrading, diversifying, equipment support
,technical consulting, promotional, exiting
etc..,

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• The above services can be availed at any of –
-inception stage,
-operational stage and
-expansion or diversification stage.
-Decline stage

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• institutions are set up as per the law.

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• An entrepreneur should know the various
institutions or organizations working as per
the law for the purpose.
• Dissemination of information in this regard
can help an entrepreneur in achieving the
very dream of becoming a successful
entrepreneur.

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 Institutions for assisting
entrepreneurship in India can be....
......Advisory Bodies
• The primary advisory bodies are Development
Commissioner, KVIC, the state small industries board,
directorate of Industries, export promotion council
......Government Institutions
• These are helping boards.
GTTC,LRDE,ADA,GTRE,CFTRI,DFRL, APEDA and Small
Industries Service Institute.
......Corporate Institutions
• These are State Trading Corporation, Central
Institution of tool Design and IDBI, SFCs.

10)
Types of institutions set up by central and state
governments that are helping Indian entrepreneurs
by providing financial and other supports....

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1. Financial Institutions:
i. Industrial Development Bank of India (IDBI)
ii. Industrial Finance Corporation of India (IFCI)
iii. Small Industries Development Bank of India (SIDBI)
iv. National Small Industries Corporation Ltd (NSIC)
v. State Small Industries Corporation (SSIC)
vi. Regional Rural Banks (RRBs)
vii. State Financial Corporations (SFCs)
viii. State Industrial Development Corporations (SIDCs)
ix. Cooperative Banks and Gramin Banks

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2. Institutions for technical guidance:
i. Small Industries Development Organisation (SIDO)
ii. District Industries Centres (DICs)
iii. Technical Consultancy Organisations (TCOs)
iv. Small Industries Service Institutes (SISIs)
v. State Small Industries Development Corporations
(SSIDCs)
vi. Industrial Development Corporation (IDCo)

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3. Training Institutions:
i. Small Industries Service Institute (SISI)
ii. National Bank for Agriculture and Rural
Development (NABARD)
iii. Council for Advancement of Peoples Action
and Rural Technology (CAPART)
iv. District Industries Centre (DIC)

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 Institutions Supporting Small-scale Industries
CENTRAL LEVEL
• SSI BOARD
• KVIC STATE LEVEL
• SIDO
• DIs
• NSIC
• DICs
• NSTEDB
SSIs
• NPC • SFCs
• NISIET • SIDCs/SIICs
• NIESBUD • SSIDCs
• IIE
• EDI

OTHERS
• Industry Association
• Non Governmental Organizations
• R & D Laboratories 15
Financial institutions for
assisting SSIs

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 Financial Institutions
• The financial institutions, act as a conduit for
the transfer of resources from net savers to
net borrowers, that is, from those who spend
less than their earnings to those who spend
more than their earnings.

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• The financial institutions have traditionally been the
major source of long-term funds for the economy.
• These institutions provide a variety of financial
products and services to fulfil the varied needs of
the commercial sector.
• Besides, they provide assistance to new enterprises,
small and medium firms as well as to the industries
established in backward areas.
• Thus, they have helped in reducing regional
disparities by inducing widespread industrial
development.
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• The Government of India, in order to provide
adequate supply of credit to various sectors of
the economy, has evolved a well developed
structure of financial institutions in the
country.
• These financial institutions can be broadly
categorised into All India institutions and State
level institutions, depending upon the
geographical coverage of their operations.
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• At the national level, they provide long and
medium term loans at reasonable rates of
interest.
• They subscribe to the debenture issues of
companies, underwrite public issue of shares,
guarantee loans and deferred payments, etc.
• Though, the State level institutions are mainly
concerned with the development of medium
and small scale enterprises, but they provide
the same type of financial assistance as the
national level institutions.
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 National Level Institutions
• A wide variety of financial institutions have
been set up at the national level. They cater to
the diverse financial requirements of the
entrepreneurs.
• They include all India development banks like
IDBI, SIDBI, IFCI Ltd, IIBI; specialised financial
institutions like IVCF, ICICI Venture Funds Ltd,
TFCI ; investment institutions like LIC, GIC, UTI;
etc.
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 State Level Institutions
• Several financial institutions have been set up at
the State level which supplement the financial
assistance provided by the all India institutions.
• They act as a catalyst for promotion of investment
and industrial development in the respective
States.
• They broadly consist of 'State financial
corporations' and 'State industrial development
corporations'.
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 Others
• These institutions have been set up by groups
of entrepreneurs, SSIs and consultants in
order to provide assiatance to needy SSI
owners at any point of time.
• Ex: Industry Association, Non Governmental
organizations,R & D Laboratories

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SSIs

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26)
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 Ministry
•The Ministry of Small Scale Industries (SSI) is a
defunct Indian government ministry.

•The Ministry of Small Scale Industries and Agro and Rural

Industries (SSI&ARI) was created in October 1999.

•In September 2001, the ministry was split into the Ministry
of Small Scale Industries (SSI) and the Ministry of Agro and
Rural Industries (ARI).

•The Ministry of Small Scale Industries merged with the

Ministry of Agro and Rural Industries to form the Ministry of
Micro, Small and Medium Enterprises in 2007
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The Ministry of Micro, Small and Medium Enterprises acts as the nodal
agency for growth and development of SSIs in the country.

The ministry formulates and implements policies and programmes in

order to promote small scale industries and enhance their
competitiveness.

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•Entrepreneurs in small scale sector are normally not required to
obtain a licence either from the Central Government or the State
Government for setting up units in any part of the country.

• But, its registration with the State Directorate or Commissioner of

Industries or DIC's makes the unit eligible for availing different types of
Government assistance like financial assistance from the Department
of Industries, medium and long term loans from State Financial
Corporations and other commercial banks, machinery on hire-purchase
basis from the National Small Industries Corporation,etc.

•Registration is also an essential requirement for getting benefits of

special schemes for promotion of SSI viz. Credit guarantee Scheme,
Capital subsidy, Reduced custom duty on selected items, ISO-9000
Certification reimbursement & several other benefits provided by the
State Government. 34
In a developing country like India, Small Scale
Industries play a significant role in economic
development of the country.

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They are a vital segment of Indian economy in
terms of their contribution towards country's
industrial production, exports, employment
and creation of an entrepreneurial base

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These industries by and large represent a
stage in economic transition from traditional
to modern technology

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Given their importance, the Government
policy framework right from the First plan has
highlighted the need for the development of
SSI sector keeping in view its strategic
importance in the overall economic
development of India

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Government accords the highest preference
to development of SSI by framing and
implementing suitable policies and
promotional schemes

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• The most important promotional policy of the
Government for the SSI's is fiscal incentives in
the form of tax concessions and exemptions
of direct or indirect taxes leviable on
production or profits.

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• The scarcity of capital in India severely limits
the number of jobs that can be created
because investment costs per job are high in
large and medium industries.

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• Small scale enterprises are generally more
labour intensive than larger organisations.

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• Small Scale Industries act as an essential
medium for the efficient utilization of the skills
as well as resources available locally.

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• Small Scale Industries enjoy a lot of assistance
and encouragement from the government viz..,
-protecting these industries from the direct competition of
the large scale ones,
-provision of subsidies in the form of capital, lenient tax
structure for this industry and many more.
- Easy and speedy registration & approval process
- Creation of local market and purchase of products by the
Government
- Free consultancies, advices and solutions
- Soft loans and Loans waived off in some cases.

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Worldwide, the micro small and medium enterprises (MSMEs) have
been accepted as the engine of economic growth and for promoting
equitable development. The major advantage of the sector is its
employment potential at low capital cost. The labour intensity of the
MSME sector is much higher than that of the large enterprises. The
MSMEs constitute over 90% of total enterprises in most of the
economies and are credited with generating the highest rates of
employment growth and account for a major share of industrial
production and exports.

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MAJOR SCHEMES announced
by the GOI
FOR
MSME’s SUPPORT

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 1.Credit Support
1. Public sector banks advised to double the flow of
credit to MSMEs within 5 years (20% annual
growth)
2. A minimum of 40% of bank credit earmarked for
priority sector lending which includes loans to MSEs
3. Specialised SME Bank branches in industrial
clusters for smooth flow of credit to MSMEs
4. One Time Settlement (OTS) scheme for settling
NPAs of MSMEs
5. Interest band prescribed
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 2.Performance and Credit Rating
Scheme
1. Helps MSMEs in accessing credits from banks &
financial institutions, orders from foreign buyers
2. Helps in assessing their strengths and
weaknesses.
3. Rating by one of the empanelled national or
international Rating agencies.
4. Government subsidizes 75% of the cost of
Rating fee
5. Concessional credits from Banks/FIs to such
rated units 48
3.Credit Guarantee Fund for Small Enterprises

• Credit Guarantee Fund Trust for Micro & Small

Enterprises (CGFTSI) gives guarantee to its Member
Lending Institutions for their collatoral free loans to
MSEs upto INR 2.5 million.
• Initial guarantee fee at specified rate (1.5% ) of the
credit facility sanctioned shall be paid upfront and
thereafter annual fee.
• Provides comfort to the Banks and Financial
Institutions.

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 4.Technological Support
1. Credit Linked Capital Subsidy Scheme for Technology
Upgradation
• Scheme meant to improve quality of products by technology
upgradation.
• Investment upto INR 10 million eligible for support with subsidy
upto 15% on investment.

2. Technology Business Incubators for incubating new

enterprises
3. Testing Centres for Quality Certification
4. Tool Rooms and Training Centres for skill upgradation
5. Incentive scheme for obtaining ISO Certification by
MSEs 50
 5.Marketing Assistance & Export
Promotion
1. Support for participation in trade fairs and
exhibitions – national as well as international
2. Training programmes on exports and method of
export
3. Purchase preference in Government procurement
4. Market Development Assistance Scheme for
publicity, market studies and adoption of modern
market practices
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 6.Upgradation Programme
• Grant upto 80% of Project cost with ceiling
of Rs.100 million for:

 technology upgradation & productivity

improvement
 energy conservation & pollution
control
• Rs 1 million assistance for capacity
building activities
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 7.Entrepreneurship Development
Programmes
• Prime Minister’s Employment
Generation Programme – PMEGP

• EDP Institutes

• Incubators

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 8.International Cooperation
Programme

• Provides exposure to MSMEs to the

latest technologies, manufacturing
practices prevalent in their fields in
different countries.

• Encourages their participation in

international exhibitions for exports

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 Central & State
Government Policy
regarding Small and
Medium Scale Enterprises
in India
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1. Industrial Policy Resolution (IPR) 1948
2. Industrial Policy Resolution (IPR) 1956
3. Industrial Policy Resolution (IPR) 1977
4. Industrial Policy Resolution (IPR) 1980
5. Industrial Policy Resolution (IPR) 1990

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 1. Industrial Policy Resolution
(IPR) 1948:
• Importance was given to solve the problems
(problems of raw materials, capital, skilled labour,
marketing, etc.) of Small scale sector and accepted
that these problems of small-scale enterprises
should be solved by the Central Government with
the cooperation of the State Governments and the
sector should be “protected” at any cost.

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 2. Industrial Policy Resolution
(IPR) 1956:
• The IPR 1956 -along with continuing policy support to
the small scale sector, Govt. to ensure that
– small scale sector is strengthened to make it self-supporting,
– the development should be integrated with that of large scale
sector
– 128 items were reserved for exclusive production in the
small-scale sector.
• The IPR 1956 for small-scale industries aimed at
“Protection plus Development.”

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• The Small-Scale Industries Board (SSIB) was set up
and also a working group was constituted in 1959
to examine and formulate a development plan for
small-scale industries during the ensuing five year
plans
• Specific developmental projects like ‘Rural
Industries Projects’ and ‘Industrial Estates Projects’
were started to strengthen the small-scale sector in
the country.
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 3. Industrial Policy Resolution
(IPR) 1977:
• The Government sensed that cottage industries were completely neglected and small
industries were pushed to a minor role. Hence this policy focused on effective promotion
of cottage and small-scale industries widely dispersed in rural areas and small towns.
• The IPR 1977 classified small sector into three broad categories: Cottage and Household
Industries (which provide self-employment on a large scale), Tiny sector (investment in
in plant and machinery up to Rs. 1 lakh and situated in towns with a population of less
than 50,000 according to 1971 Census) and Small-scale industries (industrial units with
an investment of upto Rs. 10 lakhs and in case of ancillary units with an investment up to
Rs. 15 lakhs).
• Reservation of 504 items for exclusive production in small-scale sector.
• Proposal to set up in each district an agency called ‘District Industry Centre’ (DIC) to
serve as a focal point of development for small-scale and cottage industries under a
single roof.
• The extended focus on SSIs was ‘SSIs to be protected, developed, and promoted.’

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 4. Industrial Policy Resolution
(IPR) 1980:
Focus was on…..
• Facilitating an increase in industrial production
through optimum utilization of installed capacity and
expansion of industries.
• Increase in investment ceilings
• Promotion of small-scale industries in industrially
backward districts.
• Promotion of village and rural industries in the villages 

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 5. Industrial Policy Resolution
(IPR) 1990:
• Investment ceiling on all types of industries
increased
• 836 items were reserved for exclusive manufacture
in small- scale sector.
• A new scheme of Central Investment Subsidy
exclusively for small-scale sector in rural and
backward areas was implemented.

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• Programmes of technology up-gradation
implemented under the umbrella of an apex
Technology Development Centre in Small
Industries Development Organisation (SIDO).
• ‘Small Industries Development Bank of India
(SIDBI)’ was established in 1990 to ensure
adequate and timely flow of credit facilities
for the small- scale industries.

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• Entrepreneurship Development Programmes
(EDPs) for training of women and youth.
• Delicencing of all new units and in case of
100% Export Oriented Units (EOU) set up in
Export Processing Zones (EPZ).

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Central & State Government Policy regarding
Small and Medium Scale Enterprises in India

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 Central Government Industrial
Policy
http://www.dcmsme.gov.in/policies/policies.htm

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Central Government Policies

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 State Government Industrial
Policy

Objectives of Karnataka state industrial policy 2014-19

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Karnataka State policy measures

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 Financial assistance through SFC’s
• State Financial Corporations (SFCs) are the State level
financial institutions which offer financial assistance in the
form of direct subscription to debentures/equity, term
loans, guarantees, discounting of seed/ special capital, etc.
• SFCs have been set up with the purpose of catalyzing
higher investment, bringing greater employment &
extending the ownership base of industries.
• They have also started offering assistance to newer types
of business activities like tissue culture, floriculture, poultry
farming, services related to engineering, marketing and
commercial complexes.
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 Functions of SFCs
(i) The SFCs grant loans mainly for acquisition of fixed assets like land,
building, plant and machinery.
(ii) The SFCs guarantee loans raised by business firms from commercial
and cooperative banks.
(iii) The SFCs subscribe to debentures issued by industrial concerns and
also underwrite new stocks, shares, debentures etc.,
(iv) The SFCs provide guarantee loans raised in the capital market by
scheduled banks, industrial concerns, and state co-operative banks.
(v) The SFCs act as agents of central and state governments for
sanctioning and disbursing loans to business firms

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• Underwriting of shares & debentures.
Underwriting (issue of shares or debentures) is a
contract between a company and another party
called underwriter, where by, in the event of
the shares or debentures not being subscribed fully
by the public, the underwriter agrees to take up the
balance.

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Financial incentives for SMEs in India
Keeping in mind the importance of the sector
both as a driver of the economy and as the
second largest employer, the central government
has initiated various schemes and measures to
allow MSMEs easier access to funds, and
modernize to become more competitive in the
market.

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• The 5% reduction in corporate tax rates from 30% to 25% for SMEs with
an annual turnover of Rs 50 crores in the year 2015-16
• For the units listed in SME exchange, it is very easy to avail the benefit
of capital and equity finance schemes and they also enjoy tax benefits
such as 0% long-term capital gains tax and 15% short-term gain tax
• The timeframe for carrying forward MAT (minimum alternate tax) was
raised to 15 years from 10 years
• Reduction in presumptive tax by 2% for companies with a turnover of
up to Rs 2 crores 
• Implementation of the unified GST has replaced the multiple taxes
levied at different points by different authorities
• Long term capital gains tax not to be levied, provided such gains are
invested in units of a specified fund within a period of six months from
date of transfer
• the Finance Minister in his budget 2017, announced a total spending of
Rs. 2.44 lakh crore on financing the SMEs.
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MAT is a tax applied on companies that despite
making huge profits do not come under tax net
owing to some exemptions, deductions or
incentives. So, a minimum tax rate arrived at by
special calculation is payable by such companies.
All companies besides those in the power and
infrastructure sector need to pay the MAT.

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• Presumptive scheme of taxation means your
income is calculated on an assumption instead
of actual basis. Actual basis is when you
deduct business expenses from business
income and pay tax on the balance.

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Non-financial Assistance schemes
Some Non-financial Assistance schemes

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 National Awards for Quality
Products in MSEs Sector
• These awards are given away to MSE
entrepreneurs for encouraging and motivating
them to set up small scale units and to recognize
their efforts to modernize their industries with a
view to upgrading the quality of their produce,
enhancing the productivity, increasing their
share both in the domestic/ export markets,
innovating new technology/design and bringing
in technological improvements.

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 National Awards for Outstanding
MSE Entrepreneurs
• To encourage small-scale industries to produce
quality products conforming to national and
international standards
• To propagate a culture of quality consciousness
amongst a vast section of small scale manufacturing
units and
• To instill a sense of confidence in small industry
products with the domestic consumers and to
enhance the image of Indian Products in export
markets.
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National Award for Research and
Development Effort in MSE Sector
• The award is to be given to promote the
concept of in house research and
development efforts for strengthening
technical soundness and promoting the spirit
of innovation exhibited by the unit.

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Industrial Estates: Role and Types
“An industrial estate is a group of factories,
constructed on an economic scale in suitable
sites with facilities of water, transport,
electricity, steam, bank, post office, canteen,
watch and ward and first-aid, and provided
with special arrangements for technical
guidance and common service facilities”

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• Industrial estates are provided by the
government to the entrepreneurs to establish
their industries there
• Industrial estates are considered as an
effective tool for the promotion and growth of
small-scale industries and also to decentralize
industrial activity to rural and backward areas

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 Objectives of Industrial Estates
1. Provide infrastructure and accommodation facilities to
the entrepreneurs;
2. Encourage the development of small-scale industries in
the country;
3. Decentralise industries to rural & backward areas;
4. Encourage ancillarisation in surroundings of major
industrial units; and
5. Develop entrepreneurship by creating a congenial
climate to run the industries in these estates/area
/township, etc.
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 Types of Industrial Estates
Industrial Estates are classified on various bases.

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 I. On The Basis of Functions
General Type Industrial Estate:
• These are also called as conventional or composite
industrial estates. These provide accommodation to
a wide variety and range of industrial concerns.
Special Type Industrial Estate:
• This type of industrial estates is constructed for
specific industrial units, which are vertically or
horizontally independent.

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 II On the basis of Organizational
set-up
1. Government Industrial Estates,
2. Private Industrial Estates,
3. Co-operative Industrial Estates.
4. Municipal Industrial Estates

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 III. On the Basis of the Other
Variants
(a) Ancillary Industrial Estates:
In such industrial estates, only those small- scale units are housed
which are ancillary to a particular large industry. Examples of such
units are like one attached to the HMT, Bangalore.
(b) Functional Industrial Estates:
Industrial units manufacturing the same product are usually
housed in these industrial estates. These Industrial estates also
serve as a base for expansion of small units into large units.
(c) The Workshop -bay:
Such types of industrial estates are constructed mainly for very
small firms engaged in repair work.

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 Clearances and permits required
for new business projects in India

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NSIC Raw Material Assistance Scheme
• Raw Material Assistance Scheme provides financing to Micro,
Small and Medium Enterprises at the time of the purchase of raw
material(both indigenous & imported), and helps SMEs to
purchase quality raw material at low cost and to give more
attention on manufacturing quality products.
• Benefits of the Scheme
• Providing financial assistance for a maximum period of 90 days
for obtaining raw materials.
• MSMEs can utilize economies of scale and avail cash discount or
bulk purchase discounts.
• NSIC takes care of all the procedures, documentation & issue of
Letter of Credit, in case of imports.
[National Small Industries Corporation]

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SIDBI

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 SIDBI
• An independent financial institution aimed to aid
the growth and development of micro, small and
medium-scale enterprises (MSME) in India.
• Set up on April 2, 1990 through an act of parliament,
it was incorporated initially as a wholly owned
subsidiary of Industrial Development Bank of India.
• Current shareholding is widely spread among
various state-owned banks, insurance companies
and financial institutions

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 SIDBI
•  Mission • "To facilitate and strengthen credit
flow to MSMEs and address both financial and
developmental gaps in the MSME eco-system”

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 SIDBI
• 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

101
 SIDBI
• Beginning as a refinancing agency to banks
and state level financial institutions for their
credit to small industries, it has expanded its
activities, including direct credit to the SME
through 100 branches in all major industrial
clusters in India.

102
• It aims to empower the Micro, Small and
Medium Enterprises (MSME) sector with a
view to contributing to the process of
economic growth, employment generation
and balanced regional development.

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 SIDBI
•  Besides, it has been playing the development
role in several ways such as support to micro-
finance institutions for capacity building.
• Recently it has opened many branches
christened as Micro Finance branches, aimed
especially at dispensing loans up to 5 lakh

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 SIDBI
• It is the Principal Financial Institution for the
Promotion, Financing and Development of the
Micro, Small and Medium Enterprise (MSME)
sector and for Co-ordination of the functions
of the institutions engaged in similar activities

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 SIDBI
• SIDBI has also floated several other entities for
related activities. 
– Credit Guarantee Fund Trust for Micro and Small
Enterprises. provides guarantees to banks for collateral-
free loans extended to SME. 
– SIDBI Venture Capital Ltd. is a venture capital company
focussed at SME. 
– SME Rating Agency of India Ltd. (SMERA ) provides
composite ratings to SME.
– Another entity founded by SIDBI is ISARC - India SME
Asset Reconstruction Company in 2009, as specialized
entities for NPA resolution for SME.
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 SIDBI ACHIEVEMENTS
• SIDBI retained its position in the top 30
Development Banks of the World in the latest
ranking of The Banker, London.
• As per the survey reports of The Banker,
London, SIDBI ranked 25th both in terms of
Capital and Assets

107
 SIDBI ACHIEVEMENTS
• Credit Guarantee Fund Trust for Micro and Small
Enterprises popularly known as CGTMSE is widely
being used by many PSU Banks and Private sector
banks to fund MSME sector.
• During the year 2002-03 the aggregate sanction and
disbursements of SIDBI amounted to 10,904 crore
and 6,789 crore respectively.
• SIDBI has been permitted to raise finances upto 2,730
crore the year 2013 onward by the Reserve Bank of
India.
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• http://www.sidbi.com/

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 Khadi and Village Industries Commission (KVIC)
• Statutory body created by an act of Parliament
• It is charged with planning, promotion, organization and
implementation of the program for the development of Khadi and
other village industries in the rural areas in coordination with other
agencies engaged in rural development
• KVIC’s functions also comprise building up a reserve of raw
materials, creation of common service facilities for processing of
raw materials and provision of marketing of KVIC products
• KVIC is entrusted with the task of providing financial assistance to
institutions or persons engaged in the development and operation
of Khadi and village industries and guide them through supply of
designs, prototypes and other technical information
• http://www.kvic.org.in/

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 National Small Industries Corporation Ltd. (NSIC)

• Established in 1955 by GOI with the main objectives to promote,

aid and foster the growth of SSIs in the country
• Over four decades of transition and growth in the SSI sector, NSIC
has provided strength through a progressive attitude of
modernization, upgradation of technology, quality consciousness,
strengthening linkages with large and medium-scale enterprise
and boosting exports of products from small enterprises
• 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
• http://www.nsic.co.in/
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 Indian Institute of
Entrepreneurship (IIE)
• Established by the Department of Small Scale Industries
and Agro and Rural Industries as an autonomous
organisation in 1993 with its headquarters at Guwahati.
• It takes up training, research and consultancy activities
in the field of small industry and entrepreneurship.
• It was specially developed to address the needs of north
eastern hills states with a view to market and develop
traditional and handicraft industry.

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• http://iie.nic.in

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 State Level Institutions – DIs and DICs

DIs
• Directorate of Industries (DIs) – At the State level,
• the Commissioner/ Director of Industries implements policies for the
promotion and development of small-scale, cottage, medium and large
scale industries.
• The Central policies for the SSI sector serve as guidelines but each State
evolves its own policy and package of incentives.
• The Commissioner/ Director of Industries in all the States/UTs, oversee the
activities of field offices, that is, the District Industries Centers (DICs) at the
district level

114
• Commissioner for Industrial Development and
Director of Industries and commerce is the Head of
the Institution(IAS).
• Commissioner is assisted by Additional Directors
and Joint Directors of the Department of Industries
and Commerce at the Directorate level.
• The field functionaries are at the District level by
the District Industries Centre headed by the Joint
Directors and by the Deputy Directors of Industrial
wing of the Zilla panchayath.

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 Functions
•  The main function of Directorate of Industries
and Commerce is to carry out industrial
development in the state and implement
policies and schemes of Government of India
and Government of Karnataka.
• The functions are grouped as under: 

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• Policy Initiatives for Industrial Development.
• Industrial Promotion and Monitoring.
• Project clearance and monitoring through Single Window and
High level committees.
• New scheme approvals.
• Monitoring of Employment Generation programmes.
• Institutional support to Institutions associated with industrial
development.
• Monitoring and Implementation of Government Orders issued
by the State and Central Government.
• Co-ordination with other Departments and Offices of the
Government.
• Participation in national and international trades and
exhibitions to showcase the state in attracting investment.
• Administrative issues of the Department. 117
 State Level Institutions – DIs and DICs

DICs
• District Industries Centers (DICs) – In order to extend promotion of small-
scale and cottage industries beyond big cities and state capitals to district
headquarters, DIC program was initiated in May, 1978, as a centrally
sponsored scheme.
• DIC was established with the aim of generating greater employment
opportunities especially in rural and backward areas in the country.
• At present DICs operate under respective Sate budgetary provisions.

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DICs extend services of the following nature –
(i) economic investigation 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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• The concept of District Industries Center came
during the year 1977, when Government of India
announced the new Industrial policy on 23.12.1977.
• It laid special stress on the development of Small
Scale, Village and Cottage Industries and indicated
that the "District Industries Centre" would be the
main focus agency for promotion of small scale,
village and cottage industries.
• In each district, one agency was created to deal
with all requirements of small and village industries.

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 AWAKE – Association of Women
Entrepreneurs of Karnataka
• AWAKE – Association of Women Entrepreneurs of Karnataka is a not-
for-profit, Non-Governmental Organization (NGO) based in Bangalore,
India, working towards ' Empowerment of women through
entrepreneurship development to improve their economic condition '.
• http://awakeindia.org.in/

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 AWAKE Purpose
• AWAKE strives to promote entrepreneurship among
women as a means to achieve self reliance and socio-
economic independence.
• AWAKE provides support and guidance to aspiring women
from rural, urban, national and international arenas to be
successful entrepreneurs, irrespective of their age,
academic, social, economic background.
• AWAKE’s services are extended to women Self Help
Groups (SHGs), NGOs and other development agencies
engaged in Income Generation Activities and
Entrepreneurship Development.
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AWAKE Process

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• AWAKE’s activities involve awareness programs, business counseling,
trainings, skill development, mentoring, business incubation, information
sharing and networking, marketing assistance, credit referral and policy
advocacy.
• The organization comprises of women entrepreneurs from various sectors as
its members who contribute their time and expertise to support women
entrepreneurs, based on the approach 'Entrepreneur guiding Entrepreneur'.
• AWAKE has built up a strong support network with Government, non-
government, corporate, developmental agencies, funding and finance
agencies, working with them to provide the expertise in entrepreneurship
development for both rural and urban women .
• AWAKE collaborates as a resource organization in institutional competence
building, training, policy making and enabling technology transfers for state,
national and international agencies.
• AWAKE fosters an entrepreneurial culture in women such that their
contribution to the global economy is recognized. 

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IFCI

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 Single window systems
• A single window is a system is where all facilities are
available in one place.
• For example, in banking there are various dealings like
withdrawing cash from a savings account, current account,
purchase of drafts or pay orders, making fixed deposits, etc.
• Earlier, for each type of transaction, a customer had to
approach different staff at different counters. Today, all the
facilities can be availed of at one counter or window. Hence,
it's called a single window facility.
•

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• SW system were implemented with the intent of expediting
the issue of various clearances for new Industrial Projects and
expansion of existing Industrial Projects.
• The basic aim is to facilitate the industries by providing a
single-point, time-bound clearance system required for
establishment and operation of industrial undertakings.
•
The Department of Industries & Commerce, under Single
Window Service has formulated a Composite Application
Form (CAF) for common clearances required from various
government departments / agencies.

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• With the objective of providing the facility of speedy
approval of clearances to entrepreneurs and industry
, the department has come out with this Single
Window Industrial Clearance Portal which is a One-
Stop Information Centre for Industry Clearances,
and provides a facility for Online Submission and
Tracking of the Composite Application Form (CAF).
•
With the introduction of the Single Window
Industrial Clearance Portal, setting-up of industrial
projects in the state has become speedy,
unperturbed and hassle-free operation.

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