State Level Institutions – DIs and DICs

• 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 sca
le industries. The Central policies for the SSI sector serve as guidelines but e
ach State evolves its own policy and package of incentives. The Commissioner/ Di
rector of Industries in all the States/UTs, oversee the activities of field offi
ces, that is, the District Industries Centers (DICs) at the district level
• District Industries Centers (DICs) –
In order to extend promotion of small-scale and cottage industries beyond big c
ities 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.
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
• State Financial Corporations (SFCs) –
Main objectives are to finance and promote small and medium enterprise
s in
their respective states for achieving balanced regional growth, cataly
ze
investment, generate employment and widen ownership base of industry.

Financial assistance is provided by way of term loans, direct subscription to eq

uity/debentures, guarantees, discounting of bills of exchange and seed capital a
ssistance.
SFCs operate a number of schemes of refinance of IDBI and SIDBI and also extend
equity type assistance. SFCs have tailor-made schemes for artisans and special t
arget groups such as SC/ST, women, ex-servicemen, physically challenged and also
provide financial assistance for small road transport operators, hotels, touris
m-related activities, hospitals and so on.
Under Single Window Scheme of SIDBI, SFCs have also been extending working capit
al along with term loans to mitigate the difficulties faced by SSIs in obtaining
working capital limits on time.
• State Small Industrial Development Corporations (SSIDC) –
Established under Companies Act, 1956, as State government undertaking, caters t
o small, tiny and village industries in respective states.
Being operationally flexible undertakes the activities like:-
(i) Procure and distribution of scarce raw materials,
(ii) Supply of machinery to SSI units on hire-purchase basis,
(iii) Product marketing assistance,
(iv) Construction of industrial estates, allied infrastructure facilities an
d their maintenance
(v) Extending seed capital assistance on behalf of State government
(vi) Providing management assistance to production units.
• Technical Consultancy Organizations (TCOs)
Set up by all-India financial institutions during 70s and 80s to cater to consul
tancy needs of SMEs and new entrepreneurs.
Services include preparing project profiles and feasibility studies, undertaking
 industrial potential surveys, identifying potential entrepreneurs and provision
of technical and management assistance to them, undertake market research and s
urveys for specific products, carrying out energy audit and energy conservatism
assignment, project supervision, taking up assignments on a turnkey basis, under
taking export consultancy for EOU.
• Non-governmental organization
A non-governmental organization (NGO) is a legally constituted organization crea
ted by natural or legal persons that operates independently from any government
and a term usually used by governments to refer to entities that have no governm
ent status. In the cases in which NGOs are funded totally or partially by govern
ments, the NGO maintains its non-governmental status by excluding government rep
resentatives from membership in the organization. The term is usually applied on
ly to organizations that pursue some wider social aim that has political aspects
, but that are not overtly political organizations such as political parties. Un
like the term "intergovernmental organization", the term "non-governmental organ
ization" has no generally agreed legal definition. In many jurisdictions, these
types of organization are called "civil society organizations" or referred to by
other names.
Types of NGOs
NGO type can be understood by orientation and level of co-operation.
• NGO type by orientation
a. Charitable orientation;
b. Service orientation;
c. Participatory orientation;
d. Empowering orientation;
• NGO type by level of co-operation
a. Community- Based Organization;
b. City Wide Organization;
c. National NGOs;
d. International NGOs;

SMALL INDUSTRIES DEVELOPMENT ORGANISATION (SIDO)

Small Industries Development Organisation (SIDO) an apex body at Central level f
or formulating policy for the development of Small Scale Industries in the count
ry, is headed by the Additional Secretary & Development Commissioner (Small Scal
e Industries) under Ministry of Small Scale Industries Govt. of India.
SIDO is playing a very constructive role for strengthening this vital sector whi
ch has proved to be one of the strong pillars of the economy of the country. It
functions through a network of the field offices namely 30 SISIs, 28 Br. SISIs,
4 RTCs, 7 FTSs, various training and production centers and specialized institut
es spread over different parts of the country. It is rendering the services in t
he following areas :-
• Advising the Govt. in policy matters concerning small scale sector.
• Providing techno-economic and managerial consultancy, common facilities and exte
nsion services.
• Providing facilities for technology up-gradation, modernization quality improvem
ent & infrastructure.
• Human resources development through training and skill up-gradation.
• Providing economic information services.
• Maintaining close liaison and vital linkage with the Central Ministries
• Planning Commission, Financial Institutions, State Govts. & similar other develo
pmental organizations/agencies related to the promotion and development of SSI S
ector.
• Evolving and coordinating policies for development of ancillaries.
• Monitoring the working of different Tool Rooms & PPDC's
SIDBI
Established in April 2,1990
Principal Development Financial Institution for :
-- Promotion
-- Financing and
-- Development of Industries in the small scale sector and
--Co-ordinating the functions of other institutions engaged in similar activiti
es.
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 balanc
ed regional development
Vision
To emerge as a single window for meeting the financial and developmental needs o
f the MSME sector to make it strong, vibrant and globally competitive, to positi
on SIDBI Brand as the preferred and customer - friendly institution and for enha
ncement of share - holder wealth and highest corporate values through modern tec
hnology platform
Objectives
Four basic objectives are set out in the SIDBI Charter. They are:
• Financing
• Promotion
• Development
• Co-ordination
For orderly growth of industry in the small scale sector. The Charter has provid
ed SIDBI considerable flexibility in adopting appropriate operational strategies
to meet these objectives. The activities of SIDBI, as they have evolved over th
e period of time, now meet almost all the requirements of small scale industries
which fall into a wide spectrum constituting modern and technologically superio
r units at one end and traditional units at the other.
Small Scale Industries Board (SSI Board)
The Small Scale Industries Board (SSI Board) is the apex advisory body constitut
ed to render advise to the Government on all issues pertaining to the small scal
e sector. The Board is reconstituted every two years and is headed by the Minist
er In charge of Small Scale Industries in the Government of India. The Board com
prises among others State Industry Ministers, some Members of Parliament, Secret
aries of various Departments of Government of India, financial institutions, pub
lic sector undertakings, industry associations and eminent experts in the field.
The Additional Secretary and Development Commissioner(SSI) is the Member Secret
ary of the Board. The Board is serviced by the Board and Policy Division in the
office of the DC(SSI).