The document provides an overview of various financial institutions in India that support entrepreneurs and small industries, including their roles and functions. Key institutions mentioned include the Industrial Finance Corporation of India, Life Insurance Corporation of India, Industrial Credit and Investment Corporation of India, and the Small Industries Development Bank of India. It highlights the importance of these institutions in providing financial assistance, guidance, and support for industrial development and modernization.

1. ENTREPRENEUR
INSTITUTION
SUPPORTS - E. SANTHIYA
- GRINTY BABU
- PREETHI .K.

2. 6/30/2020 2
FINANCIAL INSTITUTIONS
Financial institutions provide financial assistance to small scale and large
scale industries.
State government
Non- Government Institutions
Central government

3. 6/30/2020 3
CLASSIFICATION ACCORDING TO SERVICES
Financial Institutes
Training Institutes
Technical Guidance
Commercial Banks

4. 6/30/2020 4
Industrial Finance Corporation of India (IFCI), 1948
• Provide financial assistance to medium and large industrial organizations.
• Provides assistance for institutional infrastructure.
• Merchant banking operations.
• Improves productivity of various factors of production for the socio-economic objective of the
country.
• Provides needed guidance in project evaluation, identification, formulation, implementation,
operation etc.
• Gives its helping hand w.r.t to technical and administration.
• Undertakes research and survey for the sake of industrial development.
• Advance loans for various purposes such as underwriting of shares, guaranteeing of differed
payments for machinery.

5. 6/30/2020 5
Life Insurance of India(LIC), 1956
Works in close liaison with the other all India
financial institutions in providing finance directly to
the industries.
Helping industrial concerns by its underwriting support.
Subscribes to industrial securities & also purchase
outstanding securities in the secondary market.
Governed by considerations of yield & security as it has
an obligation to earn a reasonable rate of return for its
share holders in its various schemes without exposing
customer to undue risk.
Unit Trust of India (UTI), 1964

6. 6/30/2020 6
Industrial Credit Investment Corporation of
India (ICICI), 1955
• Private institution for assisting long term funds for capital assets and project
promotional services.
• Direct subscription to securities.
• Provide long term loans in rupees.
• Provides loans in foreign currencies.
• Guaranteeing payments for credits.
• Provide credit facilities to indigenous manufacturers.
• Leasing of equipment.
• Conducts techno economic survey for backward areas.

7. 6/30/2020 7
Industrial Development Bank of India (IDBI), 1964
Was an apex lending financial institution & reconstructed on the principle financial
institution.
Direct assistance to industrial concerns in the form of underwriting of shares debentures.
Soft loans for modernization renovation & replacement of existing industry.
Rediscount bills arising out of sales of indigenous machinery on deferred payment.
Finance exports oriented industries.

8. Small Industries Development Bank (SIDB), 1989
◌ Function as the principal financial institutions for the promotion development
& financing of industry in the small scale sector.
◌ Refinancing of loans & advances extended by primary lending institutions.
◌ Discounting and rediscounting of bills.
◌ Extension of risk capital or soft loan assistance to industries.
◌ Extending financial support to SSIDC and NSIC.
◌ Technological upgradation & modernization services to the industries.
◌ Promotes employment oriented industries esp. in semi-urban area.

9. 9
National Small Industries Corporation (NSIC), 1955
۞Public undertaking.
۞Develop SSI in the country.
۞Procuring govt. orders for small scale units.
۞Developing the SSI as ancillaries to large industries.
۞Developing & upgrading technology particularly for projects based on wastes.
۞Importing & distributing scare raw materials, components and parts among
actual users in the SSI.

10. Small Industries Development Organization (SIDO)
• Subordinate office of the Department of SSI & Auxiliary and Rural Industry (ARI).
• An apex body and nodal agency for formulating, coordinating and monitoring the policies and
programmes for promotion and development of small-scale industries.
• The main functions of the SIDO are classified into:
• (i) Co-ordination,
• (ii) Industrial development, and
• (iii) Extension.

11. a. To evolve a national policy for the development of small-scale industries,
b. To co-ordinate the policies and programmes of various State Governments,
c. To maintain a proper liaison with the related Central Ministries, Planning
Commission, State Governments, Financial Institutions etc., and
d. To co-ordinate the programmes for the development of industrial estates.
Co-ordination:

12. Industrial development:
a. To reserve items for production by small-scale industries,
b. To collect data on consumer items imported and then, encourage the setting of
industrial units to produce these items by giving coordinated assistance,
c. To render required support for the development of ancillary units, and
d. To encourage small-scale industries to actively participate in Government Stores
Purchase Program by giving them necessary guidance, market advice, and
assistance.

13. Extension:
a. To make provision to technical services for improving technical process, production
planning, selecting appropriate machinery, and preparing factory lay-out and design,
b. To provide consultancy and training services to strengthen the competitive ability of
small-scale industries.
c. To render marketing assistance to small-scale industries to effectively sell their products,
and
d. To provide assistance in economic investigation and information to small- scale
industries.

14. Small Industries Service Institutes (SISI)
• To assist existing and prospective entrepreneurs through technical and managerial counseling
such as help in selecting the appropriate machinery and equipment, adoption of recognized
standards of testing, quality performance etc.
• Conducting EDPs all over the country.
• To advise the Central and State governments on policy matters relating to small industry
development.
• To assist in testing of raw materials and products of SSIs, their inspection and quality control.
• To provide market information to the SISI’s.
• To recommend SSI’s for financial assistance from financial institutions.
• To enlist entrepreneurs for partition in Government stores purchase programme.
• Conduct economic and technical surveys and prepare techno-economic feasible reports for
selected areas and industries.

15. Small Scale Industries Board (SSIB), 1954
• Also known as central small industries board.
• An apex advisory body constituted to render advice to the government on all
issues pertaining to the development of small-scale industries.
• The Board is reconstituted every two years and is headed by the Minister In
charge of Small Scale Industries in the Government of India.

16. DISTRICT INDUSTRIES CENTERS (DIC), 1978
• Provides integrated administrative framework at the district level for promotion of small
scale industries in rural areas.
• 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.
• Centralization of procedures required to start a new industrial unit and minimization- of
the efforts and time required to obtain various permissions, licenses, registrations,
subsidies etc.

17. BIBLIOGRAPHY
• http://dcmsme.gov.in/archive/sidoboard.htm
• http://www.preservearticles.com/201101203593/objecti
ves-and-functions-of-district-industries-centre.html
• https://www.academia.edu/25342541/INSTITUTIONA
L_SUPPORT_TO_ENTREPRENEURSHIP_DEVELO
PMENT_Study_on_Cottage_and_Small_Industry_in_Il
am_District

18. THANK YOU