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UNIVERSITY OF MUMBAI

PROJECT REPORT ON District Industries Centres

SUBMITTED BY Mr. Mihir Dilip Shere

M.COM PART- II (MANAGEMENT) ROLL NO :- 52

UNDER THE GUIDANCE OF: Prof. Mrs. Kanchan Fulmali

PARLE TILAK VIDYALAYA ASSOCIATIONS M.L DAHANUKAR COLLEGE OF COMMERCE VILE-PARLE (EAST), MUMBAI- 400057 2013-2014

DECLARATION I Mr. Mihir Shere of PARLE TILAK VIDYALAYA ASSOCIATIONS,

M.L.DAHANUKAR COLLEGE OF COMMERCE hereby declare that I have completed this project District Industries Centres in the academic year 2013-2014. All the facts information submitted in the project are true and original to the best of my knowledge.

(MIHIR SHERE)

INDEX

SR. NO.
1

TITLE INTRODUCTION

2 3 4

MAIN ACTIVITIES OF DIC OTHER ACTIVITIES OF DIC OBJECTIVES OF DISTRICT INDUSTRIES CENTRE (DIC)

FUNCTIONS OF DISTRICT INDUSTRIES CENTRES (DIC)

VARIOUS SCHEMES UNDER DISTRICT INDUSTRIES CENTRES (DIC)

WEBLIOGRAPHY

INTRODUCTION

In each district one agency to deal with all requirements of small and village Industries. This is called District Industries Centre The District Industries Centre was setup in the year 1978 with objective of promotion and development of the Micro Small and Medium Enterprises. Only one DIC was established to cater to the needs of the entire UT of Andaman and Nicobar Islands. The DIC initially was under the Central Sector, from 1193 onwards it was brought under the State Sector. The DIC has been functioning as a separate entity since 2004 under the Administrative Control Secretary (Industries), A & N Administration.

The District Industries Centre was setup in the year 1978 with objective of promotion and development of the Micro Small and Medium Enterprises. Only one DIC was established to cater to the needs of the entire UT of Andaman and Nicobar Islands. The DIC initially was under the Central Sector, from 1193 onwards it was brought under the State Sector. The DIC has been functioning as a separate entity since 2004 under the Administrative Control Secretary (Industries), A & N Administration.

The District Industries Centres have undertaken various programmes for investment promotion at the grassroot level such as a organizing seminars workshops, extending support for trade fairs and exhibitions organized by various Industries associations.

All the services and support required by for MSME units under the single roof of the District Industries Centre. The Centre has a separate wing to look-after the special needs of cottage and house-hold industries as district from small industries.

Administration

General Manager is the head of the District Industries Centre. The post of General Manager is of Joint / Deputy Commissioner level. The General Manager has senior officers to assist him, such as Manager (Raw Material), Manager (Credit), Manage (Economic Investigation), Manager (Marketing) Industrial Promotion Officer(IPO) and Technical Officer cum Project Manager (PM)

Monitoring of DICs

The functioning of DICs and their achievement is monitored by Industries Commissioner, Meeting of General Managers are organized frequently to evaluate the performance and also help in resolving difficulties in implementation of different schemes.To resolve the problems of industries/industrialists, there are two types of committee at the district level viz.

District Industrial Executive Committee (DIEC)

DIEC is constituted for solving industry related problems And promoting industrtial growth. District Colector is the Chairman of this Committee and General Manager of DIC is the Member Secretary. The other members of the DIEC are President of District Panchayat,

DDO, MP, MLAs, Prominent persons active in Industries in the district and members of all district level industries associations.

Single Window Industrial Follow up Team (SWIFT)

Enterpreneurs face many difficulties when they start new industries. They have to deal with many government agencies and get many clearances. SWIFT helps them in guiding solving their problems at a single spot. This committee is working under the District Collector, General Manager of DIC is the Member Secretary and District Development Officer is Vice President of SWIFT. All industries related officers in the district are members of this committee.

The 'District Industries Centre' (DICs) programme was started by the central government in 1978 with the objective of providing a focal point for promoting small, tiny, cottage and village industries in a particular area and to make available to them all necessary services and facilities at one place. District Industries Centres are engaged for promotion of SSI to achieve the goal of providing more employment and rendering economic development. Identification and careful selection of potential entrepreneurs with the appropriate traits and attributes are a major part of training and motivation activities of DICs. Regular sitting with entrepreneurs and Block/ Gram Panchayat wise group discussion to make them aware and motivate the local people and artisans are taken up.

The finances for setting up DICs in a state are contributed equally by the particular state government and the central government. To facilitate the process of small enterprise development, DICs have been entrusted with most of the administrative and financial powers. For purpose of allotment of land, work sheds, raw materials etc., DICs functions under the 'Directorate of Industries'. Each DIC is headed by a General Manager who is assisted by four functional managers and three project managers to look after the following activities :

Activities of District Industries Centre (DIC):

i. Economic Investigation

ii. Plant and Machinery

iii. Research, education and training

iv. Raw materials

v. Credit facilities

vi. Marketing assistance

vii. Cottage industries

DICs are the Nodal Offices towards development of Industries. All intending entrepreneours are welcome. DICs also depute Industrial Development Officers at the Block Office.

MAIN ACTIVITY OF DIC

To develop and promote Cottage and Small Scale Industries in the district. The Small Scale Industries (SSI) means the Industries with investment upto Rs 1 (one) crore in plant & machinery

Facilities And Other Services

1. S.S.I. Registration

a) Provisional/Temporary Registration : Before starting the SSI Unit, this registration is issued

b) Permanent/Final Registration : After commencement of production of SSI Unit, this registration is issued

2. Preference For Power Connection

Priority is given for WBSEB electric power connection to registered SSI Unit

3. Project/Scheme Vetting

Project Scheme of SSI unit is vetted for technical feasibility

4. Marketing Assistance to Handicraft Products

Given through participation in WB Handicrafts Expo'

5. Special Assistance Rendered

For setting up Haldia Petrochemicals Downstream Units.

6. National Project of Bio-Gas Development (NPBD)

Construction of Bio-gas plant (family size 1-cum to 10-cum). Main usage are...

a) Domestic cooking and lighting

b) Production of organic manure (enriched with NPK) for better yield in agricultural, horticultural & pisicultural sectors

c) Helps to maintain ecological balance. Provision of Govt. subsidy to all categories of beneficiaries

7. Pollution Clearance for SSI Units

Pollution Clearance Certificate (consent for starting all categories, viz. Green, Orange, Red of SSI units) is issued on behalf of WBPCB and also the consent to operate for Green category only

8. Training Programme

Some training programmes on different trades as mentioned below are organised from time to time for prospective entrepreneurs and handicraft artisans

Entrepreneurship Development Programme

Special Training Programmes for Women/Physically Handicapped and Backward Classes (plumbing, pump-set repair, umbrella repair, batik print, etc.)

Transfer of Skill and Service Centres (terracotta)

Design Development/Craft Development for Handicraft Industries, Cane and Bamboo Products, Wood Carving, Solapith work

9. REGP/BSKP/Minority Loans

Technical vetting of project/scheme is done here for these Extra departmental financial assistance schemes...

a) REGP (Rural Employment generation programme)

It is launched by Khadi and Village Industries Commission. The main features are...

- Meant only for rural areas of population (less that 20,000) and for viable village-industry projects.

- Maximum limit projects upto Rs 10.0 lakhs and Rs 25.0 lakhs for institution @ 30% project cost upto Rs 10.00 lakhs will be provided as Margin Money in the form of backend subsidy after 2 years.

b) BSKP: Bangla Swanirbhar Karma Sangthan Prakalpa

This Scheme is promoted by Youth Welfare Department. The key features are...

For municipal areas only

Projects on industry, service & business sectors

Projects upto Rs 10.0 lakhs for individual @ 20% Govt. Subsidy on the project cost

c) MINORITY:

Self-employment Project for Minority Communities only. Scheme is financed and promoted by West Bengal Minorities Development & Finance Corporation (WBMDFC).

OTHER ACTIVITIES

Seminars
o o

District or Taluka Level Buyer-Seller & Exhibition

Others Activities
o o o o

Recovery of Package Loan margin Money Loan & Subsidy Welfare of Salt Workers and Recovery of Royalty from Salt Workers. Follow up of Industrial Approvals. Follow up of units which have availed benefits under incentives schemes

Self Employment Scheme 7. Recommendation of loan applications under Vajpayee Bankable Scheme 8. Recommendation of loan application under PMEGP Scheme 9. Manav Kalyan Yojana Tool kits to artisans.

Co-operative Package Scheme 10. Package Scheme 11. Handloom Development Scheme 12. Training & Production centre 13. Woolen Carpet Centre

14. Weaving Scheme 15. Recovery of Loan & Share contribution of Co-operative Societies 16. Liquidation of Industrial Society 17. Preparation of Project Profiles 18. Audit of Industrial Society 19. Gramodyog Vikas Kendra 20. Hastakala Mela

OBJECTIVES OF DISTRICT INDUSTRIES CENTRE (DIC)

Accelerate the overall efforts for industrialisation of the district. Rural industrialisation and development of rural industries and handicrafts. Attainment of economic equality in various regions of the district. Providing the benefit of the government schemes to the new entrepreneurs. Centralisation of procedures required to start a new industrial unit and minimisationof the efforts and time required to obtain various permissions, licenses, registrations, subsidies etc.

Acts as the focal point of the industrialisation of the district. Prepares the industrial profile of the district with respect to Statistics and information about existing industrial units in the district in the large, Medium, small as well as co-operative sectors.

Opportunity guidance to entrepreneurs. Compilation of information about local sources of raw materials and their availability. Manpower assessment with respect to skilled, semi-skilled workers. Assessment of availability of infrastructure facilities like quality testing, research and development, transport, prototype development, warehouse etc.

Organises entrepreneurship development training programs.

Provides information about various government schemes, subsidies, grants and assistance available from the other corporations set up for promotion of industries.

Gives SSI registration. Prepares techno-economic feasibility report. Advices the entrepreneurs on investments. Acts as a link between the entrepreneurs and the lead bank of the district. Implements government sponsored schemes for educated unemployed people like PMRY scheme, Jawahar Rojgar Yojana, etc.

Helps entrepreneurs in obtaining licenses from the Electricity Board, Water Supply Board, No Objection Certificates etc.

Assist the entrepreneur to procure imported machinery and raw materials. Organises marketing outlets in liaison with other government agencies.

FUNCTIONS OF DISTRICT INDUSTRIES CENTRES (DIC)

1.

Implementation of various schemes and programmes for employment generation and extend welfare schemes.

2.

Co-ordination and liaison with various district bodies/ authorities.

3.

Assisting other Govt. departments with regard to industrial information/ surveys etc.

4.

Creation Project data banks

5.

Acts as the focal point of the industrialisation of the district through promotional programmes.

6.

Opportunity guidance to entrepreneurs.

7.

Compilation of information about local sources of raw materials and their availability.

8.

Manpower assessment with respect to skilled, semi-skilled workers.

9.

Assessment of availability of infrastructure facilities like quality testing, research and development, transport, prototype development, warehouse etc.

10.

Organises entrepreneurship development training programs.

11.

Provides information about various government schemes, subsidies, grants and assistance available from the other corporations set up for promotion of industries.

12.

Advices the entrepreneurs on investments.

13.

Acts as a link between the entrepreneurs and the lead bank of the district.

14.

Implements government sponsored schemes for educated unemployed people.

15.

Helps entrepreneurs in obtaining licenses from the Electricity Board, Water Supply Board, No Objection Certificates etc.

16.

Assist the entrepreneur to procure imported machinery and raw materials.

17.

Organises fairs, marketing outlets in liaison with other government agencies.

VARIOUS SCHEME UNDER DISTRICT INDUSTRIES CENTRES

Industrial Promotion Subsidy Scheme 2013 :

There are numerous schemes implemented by various State Government Departments/Corporations such as Social Justice Department, Mahatma Phule Scheduled Caste Development Corporation, Vasantrao Naik VJ/NT Development Corporation, etc. Besides these departments, the Directorate of Industries through its District Industries Centres at District Level and Joint Director of Industries, Mumbai Metropoliton Region at Mumbai, implements Prime Ministers Employment Generation Programme (PMEGP), Seed Money Scheme and District Industries Centre Loan Scheme for unemployed youth.

There are mainly three schemes viz. PMEGP, Seed Money Scheme and District Industries Loan Scheme implemented by Directorate of Industries for unemployed youth. The brief features of these schemes are described below :-

A) PMEGP

Coverage :

Industry projects upto Rs. 25 lakh investment and service/business projects upto Rs. 10 lakh investment are eligible under the scheme. Project cost will include fixed capital (excluding land cost)plus working capital.

Extent of assistance :

90% loan for general group and 95% for special group will be available from public sector banks, Regional rural banks, IDBI. In urban areas, 15% margin money subsidy for general group and 25% for special group will be available through KVIC. In rural areas, the margin money subsidy will be 25% to 35% respectively. Special group include SC/ST/OBC/minority/woman/ex-servicemen/physically handicapped.

1. Eligibility :

1.

Any individual, above 18 years of age

2.

For setting up of project costing above Rs.10 lakh in the manufacturing sector and

above Rs. 5 lakh in the business/service sector, the beneficiaries should have at least VIII standard pass educational qualification.

3.

Assistance under the Scheme is available only for new projects sanctioned

specifically under the PMEGP.

4.

Self Help Groups (including those belonging to BPL provided that they have not

availed benefits under any other Scheme) are also eligible for assistance under PMEGP.

5.

Institutions registered under Societies Registration Act,1860;

6.

Production Co-operative Societies, and Charitable Trusts.

7.

Existing Units (under PMRY, REGP or any other scheme of Government of India or

State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible.

2. Implementing Agencies :

In urban areas, the scheme will be implemented through DIC, while in rural areas through KVIC/KVIB/DIC all three agencies.

REVISED SEED MONEY SCHEME

To encourage self employment venture amongst unemployed youths, govt. Has specially announced new seed money scheme w.e.f.18.5.07 increasing project cost limit from rs.10 lakhs to 25 lakhs, reducing rate of interest on seed capital from 10% to 6%. A special rebate of 3% is admissible for regular repayment of seed capital. Eligible educated unemployed gets 15% soft loan from d.i.c @ 6% as seed money loan for the project cost upto rs.25 lakhs and the upper limit of seed money rs.3.75 lakhs. In the interest of social justice, for all backward categories and handicapped youths, 20% seed money loan is eligible for the project cost upto rs.10 lakhs.

Eligibility :

1. Age limit - 18 to 50 years. 2. Minimum 7th std. Pass.

3. Domicile of Maharashtra state.

Seed Money component up to 3.75 lakhs maximum.

4.

Bank loan 75% of the project cost.

5.

The rate of interest on seed money is 6% and if the borrower pays the repayment of

instalment regularly and within scheduled time, then the borrower will get rebate of 3% in interest. So he has to pay only 3% interest.

6.

If the instalment is not repaid in time, it will attract 1% penal interest.

7.

The repayment of loan starts after three years in four yearly instalments for industry cases.

In other cases repayment starts after six months of loan availment

D.I.C LOAN SCHEME


1. The objective of the scheme is to provide financial assistance in the form of margin/seed money for the promotion of tiny industries in semi-urban and rural areas with a view to generate employment opportunities including self employment. 2. Margin money assistance is admissible only to those units whose investment in plant & machinery does not exceed Rs. 2 lakh. 3. All towns and rural areas having population of less than 1 lac are covered under the Scheme. 4. The extent of assistance is 20 % of the total investment or Rs. 40000/- whichever is less in case of entrepreneur belonging to general category and in case of entrepreneur belonging to scheduled caste & scheduled tribe, assistance upto 30 % of total fixed capital investment or upto maximum of Rs. 60000/- which ever is less is provided. 5. All units falling within the purview of the Small Scale Industries Board and Village Industries, handicrafts, handlooms, Silk & Coir Industries are covered under the Scheme. 6. The State Governments rate of interest on this loan is 4 % and repayment is to be done within 7 years. 7. This scheme is particularly useful for rural artisans 8. At district level, these schemes are implemented by General Manager, District Industries Centre of respective district (PMEGP scheme is also implemented by KVIB & KVIC in rural

areas). In Mumbai, PMEGP & Seed Money Scheme (excluding DIC loan scheme) isimplemented by Joint Director of Industries, Mumbai Metropoliton Region, Mumbai. 9. So far as DIC/ Joint Director of Industries, Mumbai Metropoliton Region, Mumbai is concerned, no collateral security is insisted. However, in case of Seed Money Scheme and District Industries Centre Loan Scheme, second charge is to be created on the assets created. 10. There is one scheme called Entrepreneurship Development and Training Programme which is implemented by Directorate of Industries through recognized Training Institutions such as MITCON Consultancy Services Ltd. and Maharashtra Centre for Entrepreneurship Development (MCED). Under this scheme, the aspects such as the Entrepreneurship Development and Technical Training are covered.

11. Any rural service and cottage industry is eligible to get the benefit under the scheme. 12. Soft loan from D.I.C for general categories 20% upto rs.40,000/- and 30% for r the sc/st category upto rs.60,000/- against the project cost approved by the financial institutions. 13. The value of plant & machinery should not be more than rs.2.lakhs.soft loan is admissible @ 4% interest p.a. FINANCIAL ASSISTANCE SCHEMES (DEPARTMENTAL)

1) Prime Minister Rozgar Yojona (PMRY)

It is a self-employment scheme for educated unemployed youth with eligibility...

a) Class VIII passed

b) Age 18 to 35 years (relaxable upto 45 years for SC / ST / Women / Physically handicapped / Ex-Servicemen)

c) Project upto Rs 2.00 lakh for Industries/Service and Rs 1.00 lakh for Business

d) Annual family income Rs 40,000/- (Max)

2) Normal Bank Finance Scheme

If is one of the major schemes for setting up SSI unit. The Projects/Schemes for the purpose should have sufficient equity participation.

3) Loan Under BSAI Act

This assistance is mainly for Handicrafts Sector. Limit of loan upto Rs 10,000/-. The rate of interest is 8% with a rebate of 2.5% on regular re-payment.

INCENTIVE SCHEME FOR SSI

West Bengal Incentive Scheme 2000 SSI units commenced after 01.01.2000 will be entitled for this scheme. The features of this scheme are...

a) 25% subsidy on fixed capital investment (Land, Building, Plant & Machinery)

b) 50% (60% in case of agro and food processing units, IT, Electronics industry) subsidy on

paid interest on Bank/FI loan for consecutive 7 years and 9 years

c) Remission of Stamp Duty and Registration Fee on purchase of Land or Buildings.

NABARD MARGIN MONEY SCHEME

1. Any rural small scale industry. 2. Maximum project cost upto 25 lakhs. 3. 20% interest free loan from nabard with service charges.

Eligibility :

1. Special high-tech projects are eligible only . 2. All nationalized and schedule commercial banks are eligible for finance.

PRIME MINISTER'S EMPLOYMENT GENERATION PROGRAMME (PMEGP)

Ministry of micro, small and medium enterprises (momsme) has launched a new credit linked subsidy programme called prime ministers employment generation programme (pmegp) on 61st anniversary of indian independence by merging the two schemes that were in operation till 31.03.2008 namely prime ministers rojgar yojana (PMRY) and rural Employment Generation Programme (REGP) for generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas. PMEGP will be a central sector scheme to be administered by the

ministry of msme .the subsidy levels, the cost limit of projects or units that could be established under PMRY which was extended to rural areas as well in 1994-95, were quite low and unattractive compared to those available to the beneficiaries in REGP. While the maximum subsidy admissible was rs.12500 and the maximum cost of project that could be established was rs.5 lakh under PMRY, the maximum subsidy that was admissible was rs.4 lakh and the maximum cost of project that could be established was rs.25 lakh under REGP for a beneficiary belonging to general category. There were more attractive programmes for creation of self employment opportunities being operated by many state governments. Recovery rates of loans under PMRY were also considerably less than those under REGP. PMEGP improves upon the subsidy levels and cost limits of projects compared to those available so far under PMRY and ensures that the attractiveness of REGP is not diluted in any way while simultaneously strengthening the selection process, implementation and monitoring mechanism.

3.

The subsidy levels under PMEGP are as under:

Categories of beneficiaries under PMEGP

Owners contribution

Rate of subsidy

(of cost of project) Area Urban Rural

General Special (including sc/ sts/ obcs/ minorities/ women, ex-servicemen, physically handicapped, ner, hill and border areas)

10% 05%

15% 25%

25% 35%

4.

The upper limit of the cost of project that could be setup in the manufacturing sector

is rs.25 lakh while that in the business/service sector is rs.10 lakh. There are no ceiling limits of annual income in respect of beneficiaries while a minimum educational qualification of viii standard pass will be required for beneficiaries in respect of projects costing more than rs.10 lakh in manufacturing sector and more than rs.5 lakh in business/service sector. The beneficiaries would be identified, inter alia, with the help of panchayats, special awareness camps and will be provided with a mandatory entrepreneurship development programme (EDP) training of a duration of two to three weeks. The scheme envisages electronic tracking of applications, 100 per cent verification of projects/units that will be established and model project profiles have been updated in association with banks. The scheme will be implemented at the national level through khadi and village industries commission (KVIC), an organization created under an act of parliament reporting to momsme which will place the funds of government subsidy with the participating banks which in turn will disburse the same to the beneficiaries on receipt of applications and their own contribution upfront in accordance with the guidelines of the scheme.

5.

While KVIC has been given the overall responsibility for implementing PMEGP at

the national level, it will directly do so in respect of the targets for rural areas, as defined in the kvic act, through its state offices and state khadi and village industries boards (KVIBS). Implementation of PMEGP in urban areas and other rural areas will be done through the state governments {district industries centres (DICS)}. The newly introduced rajiv gandhi udyami mitra yojana of momsme can also be tapped for providing handholding support to the beneficiaries under PMEGP.

6.

Budget estimates 2008-09 have provided rs.823 crore for PMEGP which includes

rs.83 crore towards backward and forward linkages including EDP training, publicity, marketing support, e-tracking of applications, physical verification of projects and so on. An estimated 6.17 lakh additional employment opportunities are targeted to be generated in 2008-09. The estimated total outlay for subsidy under PMEGP is rs.4485 crore in addition to rs.250 crore earmarked for providing backward and forward linkages to the micro enterprises between 2008-09 to 2011-2012 leading to an estimated generation of around 37.38 lakh additional employment opportunities. The scheme will be got independently reviewed after two years of its implementation.

The detailed guidelines of the scheme are being prepared by kvic and will be published and also made available on website shortly.

ZILLA UDYOG MITRA This is the committee headed by the dist.collector to sort out various problems & difficulties of indl. Units. Committee consists of officers related to industrial development as well as industries associations.

DISTRICT AWARD TO SMALL SCALE ENTREPRENEURS

Directorate of industries has introduced in 1985 a scheme of district awards for promoting entrepreneurship & recognizing the achievements of successful entrepreneurs in the sector of small scale industries. First award is of rs. 15,000/- in cash & silver plated mementos & shawl second award is of rs. 10,000/- in cash & silver plated mementos & shawl. The awards will be granted in each calendar year.

WEBLIOGRAPHY

http://ls1.and.nic.in/Industry/DIC/AboutDIC.php http://ls1.and.nic.in/Industry/Home.php http://ls1.and.nic.in/Industry/DIC/DICHome.php http://www.doingbusinessinmaharashtra.org/DIC_schemes.aspx http://www.mssidc.org/mission-statement.aspx http://www.ddinajpur.nic.in/Departments/District_Industries_Centre/district_in dustries_centre.html