This presentations helps in understanding the meaning of Financial Institutions, Role of Financial institutions in the development of Small business, Types of assistance to small scale industries and role of Industrial Estate in the development of economy

1. CHAPTER 5
PROJECT
ASSISTANCE

2. Key Takeover:
Introduction
Meaning of Financial Institutions
Role of Financial institutions
Types of assistance to small scale
industries
Industrial Estate

3. Financial
Institutions:
MEANING:
It is an establishment that focus on
dealing with financial transactions
such as investment, loans and
deposits. Conventionally, financial
institutions are composed of
organizations such as banks, trust
companies, insurance companies,
and investment dealers.
ROLE OF FINANCIAL
INSTITUTIONS:
Allotment of resources
in a proper way
Provides different types
of banking products
Motivating financing
sectors
Financing the small
scale sector
It facilitates loans and
grants
economic development

4. Types of assistance
to small scale
industries:
Financial
assistance
Non-financial
assitance
Development
and services

5. Financial
assistance:
1.
State finance Corporation [SFC]
Industries Development Bank of India [IDBI]
Industries Finance Corporation of India [IFCI]
Small Industries Development Corporation [SIDC]
Industries Credit and Investment Corporation of India
[ICICI]
Life Insurance Corporation of India [IRBI]
Unit Trust of India [UTI]
Export-Import Bank of India [EXIM Bank]
Small Industries Development Bank of India [SIDBI]
Commercial Banks
Mutual funds
Khadi and village industries corporation
Karnataka State Small Industries Development
Corporation [KSSIDC]
Karnataka state industrial investment development
corporation [KSIIDC]
The various institutions which provide financial assistance are:
Short term finance
Long term finance

6. State Financial Corporation [SFC]
It was setup under State Financial Corporation Act 1951
It is setup at every state level to develop small and medium scale industries
Objective is to provide long term finance to the entreprise
To provide financial assistance to all types of industrial units i.e. small and
medium scale
To provide long term loans for acquistions of land, building, machinery
and other facilities
To provide financial assistance for sick units
To provide young entrepreneurs
To provide financial assistance for promoting rural and cottage industries
At present there are 18 financial corporations working in different states

7. Karnataka State Finance
Corporation:
To promote the overall development of indian economy
To provide financial assistance to tiny, small and
medium scale industries
To have a balanced economic growth
To guide new entreprneur in their venture.
To provide loans for the period not exceeding 20 years
for industrial units
To give guarantee to loans taken by industrial units for
the period not exceeding 20 years
To make payment of capital goods purchased in India by
these industrial units
Objectives:
Functions:
SMALL INDUSTRIES
DEVELOPMENT BANK OF
INDIA: [SIDBI]
To help in the infrastructure
development
To promote and encourage the
formation of new industries in
urban and semi-urban areas
To generate more employment
opportunities
Direct assistance
Indirect assistance
Development and support services
Functions:
Assistance by SIDBI:

8. Star artisan credit card
scheme
Small entrepreneur credit
card scheme
Star SSI supreme scheme
Small entrepreneur trade
card scheme
Star self employment
credit card scheme
Scheme for employment
enhancement and poverty
eradication
Schemes for
entrepreneurship
development in India:
Commercial
Banks:
Initiative to acquire
scarce raw material
To provide
machinery on hire
purchase system
To provide
assistance for
marketing of
products of SSI
Functions:
karnataka State
Small Industries
Development
Corporation
Limited [KSSIDC]
To provide guidelines
and to encourage the
new entrepreneurs
To provide financial
assistance
Plan and formulate
proposals for industrial
infrastructure
development projects
Objectives:
Karnataka State
Industrial Investment
and Development
Corporation [KS
IIDC]:

9. Non Financial
Assistance:
To get registration under this scheme
for participating in government and
public sector undertaking tenders
Updated with latest information on
business leads
Helps in acquiring raw materials
Sanctions of term loans
Provide market assistance
National Small Industries
Development Corporation [NSIDC]:
Objective:
Industrialization in district
Develop rural industries
Balanced economic development
Benefits of government scheme for
new entrepreneurs
Organizes training programs
SSI registration
Advice to new entrepreneurs on
investment
Information regarding local sources of
raw materials
District Industrial center [DIC]:
Objectives:
Functions:

10. Small Industries Service
Institutions [SISI]:
To serve as interface between
state and central government
To render technical support
service
To conduct entrepreneurship
development program
It acts as advisory agency
It conduct market survey
It helps to get financial support
Objectives:
Functions:
Entrepreneurship
Development Institute of India
[EDI]:
Self employment
Training
Spirit of 'entrepreneurship' in
youth
Promoting micro enterprises in
rural areas
Improve managerial skills
Objectives:

11. Promote SSI
Support and encourage entrepreneurs
Availability of raw materials
Training programs
Entrepreneurship development programs
Skill development programs
Trainer's training program
Business counseling
Awareness program
Marketing support
Management development programs
Small Industries Development Organization [SIDO]:
objectives:
Association of Women Entrepreneurs of Karnataka [AWAKE]:
Services:

12. Technical Consultancy
Services Organization of
Karnataka [TECSOK]:
Identification of investment
opportunities
Obtaining statutory clearance
Market survey and research
Preparation of project report
Consultancy for merger
Organizing training programs
Services:
Khadi and village commission:
Employment in rural areas
Building up strong rural
community spirit
Provide employment for
rural people
Promote the sale
Financial assistance
Provide recognition
Objectives:
Functions:

13. Development
and support
activities:
Subsidies
Concessions
Bounties
Types of Incentives:
Incentives:
1.
Problems faced
by SSI
Income Tax
Concession
Tax Holidays
2. Tax Concession:
Raw material
assistance of
NSIC
Benefits of
scheme
Plant and
machinery
assistance
Technical
assistance
3. Government
Assistance:

14. Industrial Estate:
Meaning:
Industrial estates are specific areas zoned for
industrial activity in which infrastructure such as
roads, power, and other utility services is provided
to facilitate the growth of industries and to
minimize impacts on the environment.

15. FEATURES OF
INDUSTRIAL
ESTATES:
It is a land
subdivided and
developed into
factory plots or
sheds
It is a planned
clustering of
industrial units
It may be
developed in
urban, semi-
urban and rural
areas
ADVANTAGES
OF
INDUSTRIAL
ESTATE:
Economics of
scale
Low investment
Less risks
Mutual co-
operation
Balanced
regional
development
Entreneurship
development
OBJECTIVES OF
INDUSTRIAL
ESTATE:
Provide
infrastructure
facilities to the
entrepreneurs.
Encourage the
development of
SSI
To spread the
industries in rural
and backward
areas
CLASSIFICATION
OF INDUSTRIAL
ESTATES:
On the basis of
functions
On the basis of
Organization
setup
On the basis of
other variants