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Management And Entrepreneurship

Management and Entrepreneurship-06AL51

Unit VII: Institutional Support
1. Briefly Explain The Functions of TESCOK?
Technical Consultancy Services Organisation of Karnataka (TECSOK), is a
multidisciplinary technical, industrial and management consultancy organization set up.It was
established in the year 1976 by the Government of Karnataka. The primary objective of founding
TECSOK was to provide reliable consultancy support for entrepreneurs to start up self
employment ventures in Karnataka, India.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. The package of services includes feasibility studies, market research, valuation of
assets, environment impact studies, energy management and audit, management studies like
corporate plan, reorganization and restructuring of enterprises, man power planning, budgetary
control systems, mergers and acquisitions, investment opportunities, technology transfers,
diagnostic studies and also designing and organizing training programmes in all related areas. Of
late, TECSOK is also concentrating on studies relating to Cleaner Production technologies and
TECSOK has been considered by the Government of Karnataka, Government of India, State &
Central Financial Institutions, Commercial Banks, Asian Development Bank and a host of other
institutions of the Government and Private as the recognized consultancy agency.
TECSOK has been recognized as the State Nodal Agency by the Ministry of Food Processing
Industries, Govt of India to operate the Ministry's Promotional Schemes in Karnataka.
As an investor, there are many imponderables that will engage your mind. For instance,
you would like to have reliable information on the kind of product that would be feasible, the
location for your industry, and the procedures for establishing the industry. Other inputs you may
require would be in the area of market research, manpower planning, technology, environmental
issues etc.

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TECSOK, with its vast experience will provide you valuable insights and practical solutions in
all of these areas and others in which you may need assistance. With its range of services,
TECSOK offers a single platform from which you can get all the inputs you require.
Services TECSOK has been excelling its expertise in a wide range of services. U can rely on
• 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.
• Energy management & audit, corporate plan, technology transfer.
• Diagnostic studies and rehabilitation of sick industries.
• Designing and organizing training programmes
• Since its inception, TECSOK has catalysed a large number of industries throughout
the province.
• Management studies, company formation, corporate plan, enterprise restructuring.
• Port tariff study and related areas.
• Consultancy for agro-base industries as a Nodal Agency of Government of India.
• Consultancy for merger/takeovers.
• Infrastructure development project reports.

2. What are the Major Projects Handled by TECSOK?

A few of the projects handled are listed:
A. Project Conceptualization & Monitoring
• Project Conceptualization & Monitoring.

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• Monitoring the construction of Living-cum-work sheds for the sectors of Handloom.

Handicrafts, leather, and SSI under Dutch assistance.
• Karnataka Urban Development Project-Shelter and Water Supply for World Bank assistance.
• Conceptualization of Kaigarika Vikasa Scheme for development of Backward Taluks.
• Entrepreneurship training for Project Affected Families of Project Sea Bird, Karwar.

B. Viability Report for Infrastructure Development

• Report for development of Growth Centers at Dharwad, Raichur and Hassan.
• Study on Infrastructure availability in the leading States.
• Feasibility study on Hassan Airport.
C. Potential Studies / Techno-Economic Surveys
• District Potential Study and Project Reports under Swarnajayanti Gram Swarozgar Yojana
for 10 districts in Karnataka.
• Techno-Economic surveys of major districts of Karnataka.
• Technology profile study of Karnataka.
• Resource Mapping of 39 Most Backward Taluks.
D. Market Survey / Assessment
• Demand survey for setting up Tertiary Treated Water plant in Bangalore.
• Study Report on availability of raw materials and scope for new Solvent Extraction
plants in Karnataka
• Study on working of Alcohol based chemical units to assess the utilization of allotted
• Study on Energy conservation measures in energy Intensive Industries.
• Study report on fixing tariff rates for utilizing the services of Jawaharlal Nehru Port
Trust, Mumbai.
• Fixing vessel related charges for Murmugoa Port Trust, Goa.
• Study on Consultancy capabilities in Karnataka.
• Study on various aspects of lending by NABARD for non-farm sector in 14 districts of

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• Survey of Rice Mills to assess the potential for establishment of edible grade Rice Bran
oil units.
• Market study on Natural Gas in Karnataka.
• Market intelligence Report on Packaged Tender Coconut Water.
E. Evaluation of Impact Assessment
• Report on District Industrial Training Centre & Artisan Training Institute in Karnataka.
• Rural Industries Programme of NABARD at Bellary.
• Concurrent evaluation of Indira Awas Yojana and Million Well Scheme in the State of
Tamil Nadu.
• Evaluation Study of all the Schemes of Ministry of Rural Development in four Blocks of
Mysore and Bellary districts.
• Study on Socio-Economic Impact of Indo Danish Fisheries Project at Tadri, U.K District.
• Evaluation of Schemes of KMDC.
F. Policy, Prospective Plans & special studies
• Formulation of New Industrial Policy and Package of Incentives and Concessions during
1982, 1988, 1990, 1993, 1996 2001& 2006.
• Perspective plan for Karnataka Industrial Areas Development Board, an Infrastructural
development agency of the State.
• Appraisal studies of 15 State Public Sector Enterprises

3.What are the areas of specialization of TECSOK?

The areas of specialization of these consultants include:
• Electrical, Electronics, Telecommunication, Informatics and Computer Appilcation.
• Pollution Control measures, Environment Management Plan and Environment Impact
• Metallurgical, Mechanical, Civil and Infrastructure Development.
• Textiles, Sericulture, Garments.
• Energy Management, Non Conventional Energy use.
• Market Research, Data collection and Market Surveys.
• Chemical, Pharmaceutical and Plastic Engineering.

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• Corporate plans, Techno-Economic studies, Management consultancy.

• Rural Development, Training, Publications, Information.
• International Trade, Business Development, Chartered Engineering Services,
Valuation Studies.
• Agriculture, Horticulture based Industries, Food Processing.
• Women Development, Women Entrepreneurship, Training need assessment.
• Design and Delivery of training programmes, Institution Building, Re-organization &
Human Resource management.
• Curriculum vitae of Individual consultants on specific assignment can be had from
TECSOK on request

4. Briefly explain the objective functions of KIADB?

Karnataka Industrial Areas Development Board (KIADB) is a wholly owned
infrastructure agency of Government of Karnataka, set up under Karnataka Industrial Areas
Development Act of 1966.
This Board functions as per statutory provisions, rules and regulations enacted there under. The
Board comprises of senior government officers in their ex-officio capacities. The Board of
members meet regularly to take decisions and monitor the functions. KIADB holds pride in
being the first government organisation in Karnataka to obtain ISO 9001 certification in the year
Aims and Objectives :
• Promote rapid and orderly development of industries in the state.
• Assist in implementation of policies of government within the purview of KIAD Act.
• Facilitate for establishing infrastructure projects.
• Function on corporate lines, with “No Profit – No Loss” policy.
Functions :
• Acquire land and form industrial areas.
• Provide all infrastructure to such industrial areas.
• Acquire land for Single Unit Complexes.
• Acquire land for Government agencies for their schemes and infrastructure projects.

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KIADB has also acquired lands to cater the specific needs of individual industrial units (Single
Unit Complexes). The Board also acquires land for infrastructure projects of the Government.
We promote projects of public importance in joint venture with organizations of international
repute. The vision of KIADB and world class infrastructure has made investors all over

the world take notice of Karnataka as the premier destination for their startups and ventures.
Till date, KIADB has formed 95 industrial areas spread all over the State, and acquired land for
nearly 290 Single Unit Complexes ensuring balanced industrial development in all regions with
well thought of infrastructures and unique features.
Infrastructures in Industrial Area
Few prominent industrial areas:
 Peenya, Electronic City, Export Promotion Industrial Park (EPIP) in Bangalore.
 Hebbal in Mysore.
 Baikampady in Mangalore.
 Tarihal in Dharwar.
 Kakati in Belgaum.
 Auto Complex in Shimoga.
World's leading Companies have rose up in glory on the infrastructure set by KIADB. This apart,
KIADB has envisaged several innovative projects up its sleeve like Agro -Tech Parks, Apparel
Park, Auto Parks, Hardware Park, Bio-Tech Park, EPIPs, Special Economic Zones etc.

5. What are the Functional units of KIADB?

1.Acquisition Wing: This wing conducts the proceedings of acquisition and hands over the land
to KIADB. Special Deputy Commissioner heads acquisition wing and assisted by Special Land
Acquisition officers at zonal level. This section is an arm of Government which conducts the
proceedings. Board 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. Thus the action of acquisition of land is initiated.

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2.Engineering Wing: Engineering section prepares a design & development plan taking into
consideration different parameters like:
 Infrastructure requirements.
 Statutory & Regulatory requirements.
 Co-ordination with other agencies.
Chief Engineer and Chief Development Officer heads Engineering section assisted by
Development Officers who are in charge at the Zonal Offices. This wing of KIADB also
provides service to the allottees by approving building plans, providing water supply
connections, NOCs for obtaining power connections from supply agencies and addressing the
grievances of allottees at industrial areas in the matters related to infrastructure.
3. Allotment Wing: This section is headed by Secretary assisted by Assistant Secretaries at
Zonal Offices. Requests of entrepreneurs in the matters of leasing, issuance of absolute sale
deed, issuance of NOCs for financial assistance, needful clearances for change in activity,
change in constitution, maintenance of payment records of allottees etc, are attended by
allotment section.
4. Accounts Wing:Controller of Finance- the head of this department is assisted by Senior Audit
Officer, Accounts Officer, Project Officer and Assistant Secretary (A&MIS). This wing of
KIADB is engaged in drawing of budgetary proposals, project financing & planning. This
section also has responsibility of monitoring & maintaining the process related to mobilization
of finance for projects, preparation of final accounts and other activities of KIADB.
5.Administration Wing:Joint Director (Admn.) is the Head of this Department. This section
has overall responsibility of general administration, human resources management, other
administrative and logistic matters. This section ensures that the employees of this board are
abreast with professionalism by providing trainings, refresher courses etc., for better productivity
in the Organization.

6.What are the Projects of KIADB ?

Integrated Infrastructure Development Schemes (IID) of Govt. of India
KIADB is the appointed agency for development of infrastructure for industrial units under IID
Schemes. Two locations have been identified for implementation of this scheme. A short
introduction on location and region is provided below:

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 Auto Complex at Belguam:

• Extent: 280 Acres with fully loaded infrastructure.
• More than 1000 Units in the complex.
• Airport in Belguam with good railway links and well connected with roads.
• Port at Karwar-160 Kms, Panaji-180 Kms.
• River: Gokak.
• Good educational institutions in the District.
• Home of INDAL Aluminum Company and hub of trade and commerce in the region.
 At Bagalkot:
• Extent: 100 Acres.
• Work is under progress.
Auto Parks
To give momentum to growth of automobile industry in Karnataka, KIADB has made plans
to encourage location of automobile ancillary & servicing units following areas. Brief details of
Auto Park and Locations are as below:
 At Bidadi in Bangalore:
• Existing world-class infrastructure.
• Adjoining to Proposed Bangalore-Mysore Express Corridor project.
• Home of Toyota Cars ,Coco-Cola & Toyota Techno - Park Projects.
• In the vicinity of Kumbalgodu Industrial Area where Motherson-Sumi, & Araco have
• 30 Kms. from Bangalore on State High Way.
• 1400 MW power project envisaged by KPC.
 At Shimoga:
• Extent: 23 Acres with fully loaded infrastructure.
• Allotment made to 180 Units already.
• Shimoga is regional centre for trade and commerce.
• Educational & Health facilities.
• Rivers: Tunga & Bhadra.
• District is well connected with rail and roads.
• Abode of world famous Jog Falls & 1330 MW capacity power generation unit .

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 At Dharwar:
• Extent 650 Acres with fully loaded infrastructure.
• Regional Centre for trade and commerce.

Brief profile of Dharwar District.

• Location for cream of industrial fraternity like TELCO, HPCL, BPCL, Hindustan Lever,
Brooke Bond, Nirman Chemicals, Printers (Mysore) Ltd. to name a few
• ISCE / CBSE Schools, Engineering & Medical colleges, Training institutes like NTTF,
Agricultural Colleges, also HQ of Karnataka University
• Distance from Bangalore-410 Kms.,Belguam-75Kms., Bellary-230 Kms.
• Railway link to Mumbai, Bangalore, Hubli & Guntkal etc.
• Ports at Karwar-180 Kms. Panaji-135 Kms.
• Airports at Hubli-15 Kms., Belguam-75 Kms,Panaji-135 Kms.
• River: Malaprabha.
Electronic City at Bangalore
• Welcome to the heart of Indian Information technology industry. This location has put

India on the world map of IT. This area is in pollution-free locality and is the envy of
many States for its eminent client list of market leaders in field of Electronics and
Information Technology. The contributions to the world of technology from Electronic
City have become the benchmarks in the industry.

7.What are the Functions of Karnataka State Small Industries Development

Corporation Limited.(KSSIDCL)
The programme of establishment of industrial estates, which has been carried out by the
State Government involved in construction of industrial sheds of various dimensions and
providing them with essential amenities such as roads, water supply, sewerage line and
electricity. The maintenance and upkeep of the sheds also became a part of the responsibility of
the Corporation. Besides constructing and letting out the industrial sheds, developed plots were
also offered to the entrepreneurs to put up their own factory sheds. The company also established
exclusive and prominent ancillary industrial estates in the vicinities of large and medium scale

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industry to cater to their services to public sectors like BEL, ITI, HAL, NGEF, BHEL, BEML,
VISL and Mysore Lamps.
The Company has also established an exclusive Industrial Estate under ‘Dr.
B.R.Ambedkar Birth Centenary Programme’ at Jigani Bangalore District where 100 sheds have
been constructed and 86 plots have been formed with all infrastructure exclusively for SC & ST
entrepreneurs. The Allottees of these sheds are required to pay only 40% of its cost.
The company under VISHWA SHEDS SCHEME constructed 800 sheds all over the state for the
use of tiny units.
LAND ACQUISITION: The Company with a view to acquire land in and around Bangalore has
identified about 2000 Acres of Land in Ganapathihalli and surrounding villages in Magadi Taluk
which will be developed as a model Industrial Estate.
Procurement & distribution of raw materials The Company has also established 27 Raw-material
depots throughout the State to cater the needs of SSI units. The Company is currently
handling Industrial Raw materials like Iron & Steel.
The Company also distributing the Raw material required by Government Departments.
The company has also established centralised stockyard with railway siding facility at
Channasandra, Bangalore at a cost of Rs.100 Lakhs. The Channasandra Stock Yard is capable of
handling more than 1,00,000 Mts. of Iron and Steel Materials including Coal and Coke.
ENTERPRENEURAL DEVELOPMENT PROGRAMME. The Company is extending necessary
assistance for organising Entrepreneurial Development Programmes in various parts of the State
in association with TECKSOK and other commercial banks with a view to identify the talents
and to improve the quality of Entrepreneurial skill amongst the educated youth.

8.What are the schemes ,programmers and services offered by Micro, Small
and Medium Enterprises(MSME)?
On the merger of Ministry of SSI and Ministry of ARI and formation of a new Ministry i.e.
Ministry of Micro, Small and Medium Enterprises, Small Industries Service Institute, Mumbai
has been renamed as MSME-Development Institute, Mumbai w.e.f July, 2007.
• Schemes under NMCP

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• Reimbursement Scheme for obtaining ISO 9000

• MSME-MDA Scheme
Formation of a Cooperative in Rural Area.An Entrepreneurship Development Programme for
Women on Manufacture of Bags & Wallets was organised at Chiplun, Dist. Ratnagiri in the year
As per the advice of Director, during his presence in valedictory function and Inspired by this
Programme the participants viz Mrs. Alaskar, Mrs. Khare, Mrs Mane, Mrs. Khamkar, Mrs Jyoti
Kanhere formed Sneha Swayam Rojgar Mahila Sahakari Sanstha, a cooperative organisation for
self employment, Now 70 women operating in nearby area have become member of this
Cooperative Society which manufactures and sell ladies garments like petticoat, blouses, bags,
wallets etc.
They have achieved turn over of Rs.5.00 lakh in first 08months. They approach SISI Mumbai for
further guidance and improving working of their Society.
• Professional Course in International & Domestic B.P.O. Skills (Call Center Training)
• Entrepreneurship Skill Development Programme on Handmade Paper & Stationery Items
• Technology Resource Programme on Bakery & Allied Products
• Lean Leader Certification Programme for MSMEs
• Professional Course on 'Beautician'
• Two day’s Programme on ‘Up-gradation for Welding Technology – Fabrication’
• Management Development Programmes.
CAD/CAM Courses
 Technical Consultancy Services
 Managerial Consultancy Services
 Economic Investigation Services
 Entrepreneurship Development Programme
 Prime Minister's Rozgar Yojana (PMRY)
 Export Promotion & Marketing
 International Trade Fair

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 Common Facility Workshop

 Library Facility
 Modernisation / Technology Upgradation

9.What is the misson ,vision and the Various schemes of small industries
development bank of India(SIDBI)
Mission: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
VisionTo 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
Mahila Udyam Nidhi (MUN)
Purpose To meet gap in equity
Eligible Women entrepreneurs for setting up new projects in tiny / small scale sector
Borrowers and rehabilitation of viable sick SSI units. Existing tiny and small scale
industrial units & service enterprises [tiny enterprises would include all
industrial units and service industries (except Road Transport Operators)
satisfying the investment ceiling prescribed for tiny enterprises] undertaking
expansion, modernisation technology upgradation & diversification can also be
Norms Scheme operated through SFCs / twin function SIDCs / Scheduled Commercial
Banks / Select Urban Co-operative Banks
Cost of Project - Not to exceed Rs.1 million
Soft Loan limit - 25% of cost of Project subject to a maximum of Rs.2,50,000
per project.
Service charges - 1% p.a. on soft loan

Direct Credit Schemes

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• SSIs • Medium Sector Enterprises

• Service sector units with (MSE) and
project cost upto Rs.25 crore • Service sector units with
project cost above Rs.25
crore and upto Rs.250 crore.
Eligibile I] New or existing SSI units. i] New or existing medium sector
Borrowers ii] SSI unit graduating to medium enterprises, and
scale, and ii] Service sector units with an
iii] Service sector units with an overall project cost above Rs.25
overall project cost not exceeding crore and upto Rs.250 crore with
Rs.25 crore. Bank's assistance not exceeding Rs.
50 crore.
Constitution The unit should generally be a private The unit should generally be a
limited / public limited company. private limited / public limited
However, partnership firms, sole company
proprietorship concerns and Societies
and Trusts would also be considered
on a case to case basis.
Nature of Term loan and other forms of Term loan and other forms of
assistance assistance such as Working Capital assistance such as Working Capital
Term Loan and bills discounting (on Term Loan, suppliers' & purchasers'
selective basis). bills discounting. Investment
products such as debentures,
optionally convertible cumulative
preference shares, zero coupon
bonds, etc.
Currency of In Rupee or foreign currency In Rupee or foreign currency
SIDBI's Fixed Deposit Scheme is rated 'AAA(FD)' by CARE and 'FAAA' by CRISIL indicating
highest safety with regard to payment of principal and interest. Salient features of the scheme are
given below. The detailed terms of the scheme are enumerated in the application forms which

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may be obtained from any of the offices of SIDBI.


Minimum Deposit@
A. Cumulative Deposit Rs. 10,000
B. Annual income Rs. 10,000
C. Quarterly Income Rs. 10,000
D. Monthly Income Rs. 10,000
* Additional amounts in multiples of Rs.1,000

Eligible Depositors
Resident Individual. Companies
Minors. Bodies Corporate
HUFs. Societies
Partnership firms Association of Persons

Duration of Deposit
The minimum and maximum duration of the deposit is 12 and 60 months respectively. The
deposits are accepted for a tenure in multiples of one month only.

10. What are the Function and Objectives OF SIDBI?

The primary function and objectives of the Directorate of Industries are supervision and control
of District Level functionaries, i.e., the District Industries Centres in implementation of the
various schemes and programmes of the Department.
The basic objective of the Department is also to act as the Nodal Promotional Agency in the
development of industries and industries activities in the State as a whole.

And to promote and achieve the above-mentioned purpose, the Department organises and
implements various programmes and schemes to provide the basic infrastructural facilities for
the creation of industrial awareness and atmosphere viz.,
Investment Awareness Programmes

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Entrepreneurship Development Programmes

Workshop and seminars etc.
Besides, the Department also runs regular vocational training courses for creation of skilled
manpower in the following trades: -
 Knitting
 Tailoring and Embroidery
 Carpentry and Furniture making
 Leather, Blacksmith and Fabrication
 Carpet Weaving
To replacement the above purpose, regular sponsoring with stipend is also offered to local youths
for under-going training and study courses both inside and outside the State.
The Department also provides grants-in-aid loans to some of the autonomous bodies and
subsidiaries like the M.K.V.I.B., M.H.H.D.C., M.E.D.C., M.C.C.L. etc., every year.
To accelerate the pace of industrialisation process, infrastructure development and development
of industrial areas and estates are being given importance. Financial Assistance is made available
to tiny/ cottage, to large/ medium sector of industrial units in the form of grants-in-aid to
technical entrepreneurs to package scheme of incentives and central transport subsidy. Some of
the scarce raw materials like paraffin wax, iron and steel materials are also allotted to register
industrial units at concessional rates.
Every year, a number of local entrepreneurs are nominated for selection of National Awards to: -
 Small Scale Industries and
 Handloom and Handicrafts Artisans

11.What are the major plans of SIDBI?

1.Development of Industrial Areas and Estates:With the passing of time, there has been a
steep rise in scarcity of suitable land for setting up of industrial projects. Therefore, to meet the
above demand clutched with other basic Industrial Infrastructures, like road, water, power etc.,
the Department have acquired suitable plots of land almost in every district of the state and
developed them into industrial areas and estates. And for efficient maintenance of these

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Industrial Areas and Estates, the Department has a specific annual plan scheme known as
Development of Industrial Areas and Estates.
2.Man Power General Schemes :In order to create skill technical and managerial entrepreneurs,
the Department, through the District Industries Centres (D.I.Cs.) and State Financial and
Industrial Development Corporation, i.e., Meghalaya Industrial Development Corporation
(M.I.D.C.) sponsors local youths with suitable stipend to undergo training studies so that they
meet either the local demand or set up Industries of their own as self-employment ventures after
successful completion of their courses.
These schemes are:
 Manpower Training Scheme and
 Entrepreneurial Development Programme
3.Feasibility Studies :As consultancy and study for identification of viable industrial projects,
the Department, through the Meghalaya Industrial Development Corporation (M.I.D.C.) have
undertaken a feasibility studies of several Industrial projects, in which the Meghalaya Industrial
Development Corporation can take part in its equity participation.
4.Financial Operation :In order to enable the Meghalaya Industrial Development Corporation
(M.I.D.C.) to meet its requirement of fund as a financial institution, the Department extends fund
to the Meghalaya Industrial Development Corporation under the scheme of Financial Operation.
5.Package Scheme of Incentives :With the announcement of the State’s Industrial Policy in
May 3, 1988 , the Department extended the various package of incentive to small-scale medium
and large-scale industries for specific period of 5 (Five) or 7 (Seven) years for different item.
These state incentives are available to industrial units after they are established and permanently
registered with the State Directorate of Industries or the District Industries Centre (D.I.C.) as the
case may be.
6.Share Capital Contribution
As a Promotional Department, the Department do take part in Share Capital Contribution to: -
 Meghalaya Industrial Development Corporation (M.I.D.C.)
 Mawmluh Cherra Cements Limited (M.C.C.L.)
 Meghalaya Khadi And Village Industries Board (M.K.V.I.B.)
 Meghalaya Handloom And Handicrafts Development Corporation (M.H.H.D.C.)

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 Meghalaya Electronics Development Corporation (M.E.D.C.)

7.Transport Subsidy Scheme

A major fiscal assistance is received by the local Industries by way of Transport Subsidy against
the expenditure incurred by these units either by importing their requirement of raw materials, or
exporting of their finished products from or to outside the state. The requirement of fund for the
purpose is reimbursed by the Central Government after the claims are disbursed on cent per cent
8.District Industries Centre Programmes
The innovative scheme of District Industries Centre Programmes was introduced by the
Government of India to provide all facilities to entrepreneurs under a single roof. Under the
scheme, each district of the state will have a fully functional District Industries Centres (D.I.Cs)
manned with managerial expertise in different streams.
9.Scheme for Self Employment of the Educated Unemployed Youth
The Prime Minister Rozgar Yojana (P.M.R.Y.) was introduced in 1993-94 with 95% loan for all
type of ventures such as:-
Upper Limit
i. Industry Rs. 2,00,000/-
ii. Services Rs. 2,00,000/-
iii. Business Rs. 1,00,000/-

9.Normal Industrial Loan

The District Industries Centres (D.I.Cs) do appraise and sponsor normal industrial loan cases to
financial institutions, for long term loan and to the commercial banks for short term lending for
working capital requirements.
Awareness Programmes at identified growth centre throughout the state.
10.Departmental Training Programme
In order to meet the local demand of skilled hands and also to equip the local youths for self-
employment ventures, the Department runs regular vocational courses in the trade of :
 Knitting
 Tailoring and Embroidery
 Carpet Weaving

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 Carpentry and Furniture making

 Leather, Blacksmith and Fabrication works etc

The trainees are granted with monthly stipend at nominal basis. On completion of the training
course, as a follow up, Grants-in-aid both in cash and kind are made available to these technical
entrepreneurs to set up self-employment ventures of their own.

12.Write a brief note on Prime Minister’s Rozgar Yojana (P.M.R.Y) For

Educated Unemployed Youth ?
Prime Minister Rozgar Yojana for providing self-Employment to Educated Unemployed Youth
was announced by the Prime Minister on 15th August, 1993 to provide self-employed
opportunities to one million educated unemployed youth in the country. The Scheme has been
formally launched on 2nd October, 1993 .
1. Objectives:
The PMRY has been designed to provide employment to more than a million Person by setting
up of 7 lakhs micro enterprises by the educated unemployed youth. It relates to the setting up of
the self-employment ventures through industry, service and business routes. The scheme also
seeks to associate reputed non-governmental organisations in implementation PMRY scheme
especially in the selection, training of entrepreneurs and preparation of project profiles.

2. Coverage:
The scheme intends to cover urban areas only during 1993-94 and whole of the country from
1994-95 onwards. From 1994-95 onwards, the existing self-employment Scheme for the
Educated Unemployed Youth (SEEUY) will be subsumed in PMRY.

3. Eligibility:
Any unemployed educated person living in any part of the country rural or urban fulfilling the
following conditions will be eligible for assistance. However, during 1993-94, the scheme would
be operated only in urban areas.

Age: Between 18 to 40 years (SC/ST - 45 years).

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Qualification: Matric (Passed or Failed) or ITI passed or having undergone Govt. sponsored
technical course for a minimum duration of 6 months.
Residency: Permanent resident of the area for at least 3 years Document like Ration Card would
constitute enough proof for this purpose. In its absence any other document to the satisfaction of
the Task Force should be produced.
Family Income: Upto Rs.40,000/- per annum. Family for this purpose would mean spouse and
parents of the beneficiary and family income would include income from all sources, whether,
wages, salary, pension, agriculture, business, rent etc.
Defaulter: Should not be a defaulter to any nationalised bank/financial institution/co-operative

4. Reservation:
Preference should be given to weaker section including women. The scheme envisages 22.5%
reservation for SC/ST and 27% for other Backward Classes (OBCs)
5. Project Cost:
Projects upto Rs.1 lakh are covered under the scheme in case of individuals. If two or more
eligible persons join together in a partnership, the project with higher costs would also be
covered provided share of each person in the project cost is Rs.1 lakhs or less.

6. Margin Money, Bank Loans and Rates of Interest:

Entrepreneur is required to contribute 5 percent of project cost as margin money in cash. Balance
95 percent would be sanctioned as composite loan by Bank at the rates of interest applicable to
such loans under guidelines of Reserve Bank of India issued from time to time.

7. Collatoral guarantee on bank loans:

The loans would not require any collateral guarantee. Only assets created under the Scheme
would be hypothecated/mortgaged/pledged to the Bank.

8. Subsidy:
Government of India would provide subsidy at the rate of 15 percent of the project cost subject
to a ceiling of Rs.7, 500/- per entrepreneur. In case more than one entrepreneur join together and

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set up a project under partnership, subsidy would be calculated for each partner separately at the
rate of 15 percent of his share in the project cost, limited to Rs.7, 500 (per partner).

9. Repayment Schedule:
Repayment Schedule would range from3 to 7 years after an initial moratorium of 6 to 18 months
as decided by the Bank.

10. Training:
Scheme envisages compulsory training for entrepreneurs after the loan is sanctioned.

11. Other Inputs:

a. State / U.T. Governments have been requested to provide necessary infrastructure support
like provision of Industrial sites, sheds, shops, water on preferential basis to these
entrepreneurs. Provision of sites and sheds at concessional rate to service ventures in
urban area will be essential for their success. Many State/U.T Governments are providing
various tax concessions and incentives under their industrial Policy. Such concessions
should also be extended to the beneficiaries under the scheme.
• As load requirement will be small, State/U.T. governments have also been
requested to give priority to the person getting the loan sanctioned under the
PMRY for electric connection and no deposit should be asked for and small
infrastructure e.g. erecting a few poles and extension of wire line should be done

13. What are the schemes of Karnataka state finance corporation (KSFC)
KSFC is one of the fast track Term Lending Financial Institutions in the country, with
assistance to more than 1,59,225 units amounting to nearly 8,537 crore rupees over the last 49
years in the State of Karnataka. It is one of the robust and professionally managed State
Financial Corporations.

Activities/ Schemes For Objective / Purpose

Financial Assistance
General Scheme For establishment of new Tiny/SSI/MSI/ Service units and for

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expansion/modernization/ diversification of existing units

Assistance To For establishing commercial complexes,residential apartments,
Construction / development of residential layouts, group housing, industrial
Infrastructure Related estates, software parks, godowns, warehouses, acquisition of
Activities ready built offices/new office building,sales outlets/showrooms
and other other infrastructure projects like flyovers, bridges etc
and construction,development and maintenance of roads.
Assistance To Hotels/ For setting up of medium and star category standard hotels in the
Restaurants state capital, district ad taluk HQ, important tourist centres. The
hotels should have boarding, lodging and restaurant facilities and
building plan approved by local authorities. Assistance for
mobile canteens is also available.
Assistance To Tourism Setting up of amusement parks, convention centres, travel and
Related Activities transport, tourist service agencies and restaurants.
Assistance To For setting up clinic, nursing homes, hospitals, and for acquiring
Doctors/Nursing electro- medical equipment
Homes/Hospitals/ Electro
Medical Equipments
Assistance To For construction and purchase of cinema halls and multiplexes,
Entertainment Industry production of short TV serials and feature films, software for
visual media publicity.
Single Window Scheme To provide loan both for fixed assets and working capital to tiny
and small-scale units whose project cost does not exceed Rs. 35
lakhs and working capital requirement does not exceed Rs. 15
Corporate Loan Scheme Short term loans to the existing successful units who require
urgent working capital funds either to meet gap in the working
capital requirements or funds required for executing the rush of
orders and also for meeting statutory dues to government like
payment of income tax, sales tax excise duty etc. This loan is
also considered for developing/expanding new markets and
opening LC for purchase of new equipments till a term loan is
sanctioned and released.
Rehabilitation For Sick Assistance for rehabilitation of potentially viable sick units.

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Industrial Units
Assistance To Qualified Assistance for qualified professionals- management, accounting,
Professionals medical architects, engineers, veterinary for setting up of
business enterprises, private practice and consultancy services in
their line of expertise.
A.M.A.R.A (Assistance Assistance to small and medium scale existing units with good
For Marketing Related track record to undertake various activities necessary to increase
Activities their sales in the domestic and foreign markets and to create
physical marketing infrastructure.
Acquisition Of Existing Assistance to existing units with good track record for
Enterprises acquisition of existing assets. (Plant and machinery of reputed
make with minimum of 10 years and industrial/commercial
properties with a minimum of 20 years of residual life.
Small Road Transport Assistance to small road transport operators to meet expenditure
Operators (SRTOs) towards cost of chassis, body building, initial taxes, insurance
Assistance For Acquiring Assistance to individuals, firms and companies for acquisition of
Private Vehicles vehicles like cars, vans, omni buses, tractors etc.
Acquisition Of ISO 9000 Assistance to existing industrial concerns in the SSI sector
Series Certification having a good track record, to meet expenses on consultancy,
documentation, audit certification fees, equipment and
calibrating instruments required for acquisition of ISO
Financing Of DG Sets Assistance for acquisition of DG sets/installation and
construction of dg set etc. Assistance for acquisition of
generators for purpose of hiring vehicles, trailers, DG sets and
accessories also available.
Office Automation Assistance to existing units with good track record to acquire
items like PCs, printer, copier, lax machine, telephone etc.
Training Institution Assistance to existing units with successful track record for
setting up in-house training facilities including construction of
building, acquisition of furniture, equipments etc.

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14.What are the primary requirements to avail financial assistance from the
Project Profile seeking information on the project and promoter, details of land, building,
plant and machinery, power, water, marketing, arrangements for working capital, project cost
and means of finance, securities offered etc., needs to be filled in, in addition to the Bio-Data &
Networth Statement as per format.
Assistance will be extended as per the Scheme and Lending Policy guidelines discussing
the sector under which a project falls such as Thrust, Normal, Restricted and Prohibited Sectors,
stipulations on the extent of finance and collateral security to be offered by the promoter will be
duly indicated.
Along with the Project Profile and Bio-data and Networth statements, the promoter is
required to submit copies of the following:

a. Constitutional details – If it is a partnership firm, to submit partnership deed, Form A&C

issued by the Registrar of Firms If it is a Company, to submit the Memorandum & Articles of
Association, list of Directors, their share holding etc.

b. Land details: Title deed, previous deed, land conversion order from the Deputy
Commissioner for non agricultural purpose, layout plan approval from competent authority,
khata, tax paid receipts, EC for 15 years if own land In case of leased premises, submit lease
deed including the special clauses stipulated by the Corporation, proof of title of the owner such
as Khata/tax paid receipt etc.

c.KIADB/KSSIDC – Allotment letter, lease cum sale agreement, possession certificate

d. Building details: Building plan approval from competent authority such as

BDA/BMP/CMC/KIADB/KSSIDC/Local Planning Authority etc., plant layout, detailed civil
estimates, construction permission from local authorities etc.

e. Plant and Machinery – list of plant and machinery proposed with supplier and cost supported
by copies of competitive quotations/proforma invoices.

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If the plant and machinery is proposed to be imported – copies of Chartered Engineer's

Certificate to be submitted along with the proforma invoice. The minimum residual life should
be at least 10 years.

f. Marketing arrangements made. Market study duly discussing the demand supply position
and gap there of etc.,if carried out may be submitted. Assurance letters/orders placed to also be
submitted. Focus on backward and forward linkages essential.

g. Collateral securities to be offered as per the lending policy of the Corporation to be

adequately attended. Valuation of assets shall be based on present SR Rates/KIADB/KSSIDC
allotment rates only for land and buildings to be assessed on WDV basis.

15.What are the secondary requirements to avail financial assistance from

the corporation?
Once the above details are submitted and prima-facie clearances on the documents are
obtained from the legal department of the Corporation, the proposal will be placed before the
Project Clearance Committee Meeting Chaired by the Managing Director with Executive
Directors, General Managers (Credit, North Zone, South Zone), DGM (Credits-I), DGM
(Credits-II), AGM (Legal) and AGM (BDCR) as members and convened by AGM (EG). The
project will be deliberated and interacted with the promoter and once the proposal was found to
be in accordance with the lending policy requirements, in principle clearance will be given on the
spot and loan application form will be issued for the specified amount.

The promoter is to submit the application in two sets with copies of all related documents,
estimates, quotations, affidavit etc., Processing fee of 0.5% and Service Tax of 12.36% on the
processing fee shall be paid while submitting the application. Upon scrutiny of the application
the same will be forwarded to the Credits Department for processing. The Credit Department
with its team of technical, financial, legal and marketing officers interacts with the promoter,
inspects the locations of both primary and collateral securities' properties for valuation. After
processing the proposal as per lending policy norms and reports on technical, financial, legal and
marketing duly discussing the viability/feasibility the case will be placed for sanction by the

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competent authorities. Up-front fee of 0.5% shall be paid before disbursement of the sanctioned

The Corporation has fixed time standards for sanction of loans from 21 days to a maximum of 60
days depending on the type of loan.
The Corporation has delegated powers of sanction by the Committees at various levels
Upto Rs.15 lakhs in the case of 'B' Grade Branches;
Upto Rs.20 lakhs in 'A' Grade Branches
Upto Rs.35 lakhs at Super 'A' Grade Branches and Upto Rs.60 lakhs at the Zonal Level.
Higher amounts than the above will be sanctioned at Head Office.
Limit of accommodation for –a.Proprietary concerns and partnership firms is Rs.2 Crore and
b.Registered companies and registered cooperatives it is Rs.5 Crore.

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