Role of specilized institution in development of ssi


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Role of specilized institution in development of ssi

  1. 1. "Role of Specialized Institutions in Development of SSI " Presented By : Mohd Alam &1 Md Abu Shaham
  2. 2. WHAT IS SSI? Initially SSI were classified into two categories- those using power with less than 50 employees and those not using power with the employee strength being more than 50 but less than 100. An industrial unit can be categorized as a small- scale unit if it fulfils the capital investment limit fixed by the Government of India for the small-scale sector. Investment – Upto 5 crores (production) upto 2 crores (services) Employee – Less than 200 Products – Mostly unbranded2
  3. 3. SSI in INDIA  Contributes almost 40% of the gross industrial value added in the Indian economy.  Employment generation next only to agriculture.  Contribution to exports3
  4. 4. Importance of SSI  Employment  Rural development  Reduces inequality of income  Operational flexibility  Assists large scale industries  Foreign exchange4
  5. 5. Types of SSI SSI Traditional Modern Khadi Ancillaries Handlooms Tiny/Small /Medium Enterprises Cottage Sericulture Small-Scale Service and Business Enterprises5
  6. 6. Government initiatives  Exemption for excise duty limit raised from Rs. 50 lakhs to Rs. 1 crore  The composite loans limit raised from Rs. 10 lakhs to Rs.25 lakhs  The Nayak Committees recommendations regarding working capital6
  7. 7. Types of Specialized Institution: 1)All India Institutions: Small Scale Industries Board Ministry of Small Scale Industries• Small Industry Development Organisation (SIDO) National Small Industries Corporation (NSIC) Limited The Khadi and Village Industries Commission (KVIC) Coir Board Training Institutes7
  8. 8. 2 )State Level Institutions: State Industrial Development Corporations (SIDCs) State Directorate of Industries (SDIs) District Industries Centres (DICs) 3)Fund-Based Institutions : Small Industries Development Bank of India (SIDBI) Commercial Banks State Financial Corporations (SFCs)8
  9. 9. ALL INDIA INSTITUTIONS THE KHADI AND VILLAGE INDUSTRIES COMMISSION (KVIC) : The Khadi and Village Industries Commission (KVIC) is a statutory body created by an Act of Parliament in April 1957 The KVIC is supposed to do the planning, promotion, organization and implementation of programs for the development of khadi and other village industries in the rural areas. 9
  10. 10. NATIONAL SMALL INDUSTRIES CORPORATION (NSIC): NSIC , Ltd. was set up in 1955 with a view to promoting, aiding and fostering the growth of small scale industries in the country with focus on commercial aspects of these functions . a) Composite Term Loan Scheme b) Equipment leasing c) Working Capital Finance d) Raw Material Assistance e) Marketing Support program 10 Technology Up gradation f)
  11. 11. COIR BOARD: Coir Board is a statutory body established by the Government of India under a legislation enacted by the Parliament namely Coir Industry Act 1953 for the promotion and development of Coir Industry in India as a whole.11
  12. 12. • They act as a catalyst for promotion of investment and industrial development in the respective States.12
  13. 13. • They have been set up with the aim of promoting industrial development in the respective States and providing financial assistance to small entrepreneurs.• They are also involved in setting up of medium and large industrial projects in the joint sector/assisted sector in collaboration with private entrepreneurs or wholly-owned subsidiaries.E.g. Tamil Nadu Industrial Development Corporation13 Ltd. (TIDCO)
  14. 14. ROLE OF DIC:  Technical support for preparation of Project Report.  Information on sources of machinery & Equipment.  Priority in Power supply/ Telephone connection.  Promotion of new Industrial Estates/ Growth Centers.  Land/ Shed in Industrial Estate.  Approval of Project Reports of special types.  Promotion of Electronic Industries.14
  15. 15. FUND-BASED INSTITUTIONS:Government of India recognized the need for afocused credit policy for SSIs in the early days ofpromotion of SSIs and RBI has been instrumental indevising a multi-stage approach/financial system forcredit dispensation to different sectors of theeconomy, for example, agriculture, industry, exports,SSIs etc. This section focuses on the role of SIDBI,SFCs and commercial banks in granting credit tosmall scale and tiny sector15
  16. 16.  This plays a crucial role in the development of small and medium enterprises in the concerned States.  SFCs have been set up with the objective of catalyzing higher investment, generating greater employment and widening the ownership base of industries.  There are 18 SFCs in the country.  Eg : Tamil Nadu Industrial Investment Corporation Limited.  Rajasthan Finance Corporation (RFC)16
  17. 17. • Set up by the Government of India in April 1990, as a wholly owned subsidiary of IDBI. • It is the principal financial institution for promotion, financing and development of small scale industries in the economy. • It aims to empower the Micro, Small and Medium Enterprises (MSME) sector with a view to contributing to17 the process of economic growth, employment generation and balanced
  18. 18. Thank You18