The document discusses various institutions that provide support to industries in Karnataka, including the Karnataka Industrial Areas Development Board (KIADB), Karnataka Small Scale Industries Development Corporation (KSSIDC), Karnataka State Industrial Investment and Development Corporation (KSIMC), National Small Industries Corporation (NSIC), District Industries Centres (DICs), and Small Industries Development Bank of India (SIDBI). It provides details on the functions and services provided by these institutions such as acquiring land for industrial areas, providing infrastructure, term loans, refinancing, entrepreneurship training, and more.

2. Unit-7: Institutional Support
TECKSOK; KIADB, KSSIDC; KSIMC
,SISI; NSIC, DIC Single Window Agency, SIDBI; KSFC

5.  The Karnataka Industrial Areas Development
Board [KIADB] was constituted under Sec.5 of
Karnataka Industrial Areas Development Act, [KIAD
Act] – 1966.
 KIADB provides for expeditious acquisition of lands
for industrial and infrastructure purposes.
 KIADB also acquires lands in favour of various State
& Central Govt. Departments for setting up their
projects on stand alone basis.

6.  Promote rapid and orderly development of industries
in the state.
 Assist in implementation of policies of Government
within the purview of KIAD Act.
 Facilitate in establishing infrastructure projects.
 Function on “No Profit – No Loss” basis.

7.  Acquire land and form industrial areas in the
state.
 Provide basic infrastructure in the industrial
areas.
 Acquire land for Single Unit Complexes.
 Acquire land for Government agencies for
their schemes and infrastructure projects.

8.  KIADB has formed industrial areas in all the districts of the
State.
 It has formed 132 small and big industrial areas spread over
the State covering about 40,000 acres.
 In Bangalore industrial areas like Peenya, Bidadi, Electronic
City, EPIP-Whitefield, etc.
 In Mysore, Hebbal industrial area spread over 3000 acres.
 KIADB has several innovative projects like Agro -Tech
Parks, Food Parks, Auto Parks, Hardware Park, Bio-Tech
Park, Growth Centers etc.

9. KIADB has so far developed 136 industrial areas in 28
districts of the State.
A typical industrial area developed by the Board will
have following infrastructure facilities:
 Approach roads and internal roads with storm water
drains
 Power supply and street lighting
 Water supply

10.  Common Facilities Centers to accommodate Banks, Post
Offices, Telephone Exchanges, Dispensaries and Canteens,
among others
 Power Sub-Stations
 Hotels & Hospitals
 Housing tenements to provide housing facility to the labour
force working in the industrial units

12.  Kaushik Mukherjee, IAS, Managing Director
 KSFC has been playing a vital role in the
development of Micro, Small and Medium scale
Enterprises (MSMEs) in the State of Karnataka
 KSFC an ISO 9001:2000 certified organization

13. KSFC is one of the fast track term lending financial
institutions in the country
Assistance to over 1,63,643 units amounting to nearly
Rs 10,465 crore over the last 52 years in the State of
Karnataka.
 KSFC is one of the robust and professionally managed
State Financial Corporations.

14.  KSFC to have assisted many industries that are
internationally recognised like
 INFOSYS
 BIOCON

15.  Financial services
 Infrastructure development
 Term loan

17. Category of loans Rate of interest
Loans up to Rs. 25 lakh 10.50%
Loans above Rs. 25 lakh 11.00%
Non SSIs & MSI 11.00%
Corporate Loan 12.00%

18.  For establishing Commercial Complexes,
 Residential Apartments
 Development of Residential Layouts,
 Group Housing
 Industrial Estates
 Parks
 Godowns

19. Warehouses
Acquisition of Ready built Offices/New Office Building
 Sales Outlets/Showrooms and
 Infrastructure projects like Flyovers, Bridges etc
 Construction
Development and Maintenance of Roads

20. Amusement Parks
 Convention Centres
Hotels and Restaurants
 Travel and Transport
 Tourist Service Agencies
Mobile Canteen / Catering

21. For acquiring capital goods
Equipment including road rollers, asphalting units
Concrete mixtures, tippers, excavators,
Surveying and other supporting equipment towards
development, maintenance and construction of roads.

23.  The Government of India set up the SIDBI under a
special Act of the Parliament in October 1989.
 SIDBI commenced its operations from April 2, 1990
with its head office in Lucknow.
 SIDBI has been setup as a wholly owned subsidiary of
IDBI.
 Its authorised capital is Rs.250 crore with an enabling
provision to increase it to Rs.1000 crore.
 It is the apex institution which oversees, co-ordinates
& further strengthens various arrangements for
providing financial and non-financial assistance to
small-scale, tiny, and cottage industries.

24.  Four basic objectives are set out in the SIDBI Charter. They
are:
◦ Financing
◦ Promotion
◦ Development
◦ Co-ordination

25.  Direct finance.
 Bills finance
 Refinance
 International finance
 Promotional & Development activities.
 Fixed deposit scheme
 Technology Upgradation & Modernisation Fund
Scheme {TDMF}
 Venture Capital Fund Scheme
 Seed Money Schemes
 National Equity Fund Scheme

26.  Since its beginning, SIDBI had been providing
refinance to State Level Finance
Corporations / State Industrial Development
Corporations / Banks etc., against their loans
granted to small scale units.
 SIDBI’s direct finance schemes are:
◦ Scheme for expansion / diversification of small scale
units.
◦ Scheme for specialised marketing agencies.
◦ Scheme for ancilaring / subcontract units.
◦ Scheme for existing Export Oriented Units(EOUs) to
enable them to acquire ISO 9000 series certification.

27.  Bills Finance Scheme involves provision of
medium and short-term finance for the benefit
of the small-scale sector.
 Bills Finance seeks to provide finance, to
manufacturers of indigenous machinery, capital
equipment, components sub-assemblies etc,
based on compliance to the various eligibility
criteria, norms etc as applicable to the
respective schemes.
 To be eligible under the various bills schemes,
one of the parties to the transactions to the
scheme has to be an industrial unit in the
small-scale sector within the meaning of
Section 2(h) of the SIDBI Act, 1989.

28.  Refinance scheme is introduced for catering to the need of
funds of Primary Lending Institutes {PLI} for financing small
scale sector.
 Under the scheme, SIDBI grants refinance against term loans
granted by the eligible PLIs to industrial concerns for setting
up industrial projects in the small scale sector as also for
their expansion / modernisation / diversification.
 PLIs are SIDC, SFC. Banks like commercial banks, Co-operative
Banks, Regional Rural Banks
 Schemes of re-finance assistence:
◦ Scheme for SC-ST & physically handicraft persons
◦ Composite loan scheme
◦ Equipment refinance schemes.
◦ Schemes for small road transport operators.
◦ Special assistence to ex-servicemen.

29.  The main objective of the various International
Finance schemes is to enable small-scale industries
to raise finance at internationally competitive rates
to fulfill their export commitments.
 The financial assistance is being offered in US
Dollars and Euro currencies. Assistance in Rupees
is also provided to the needy borrowers.
 The international finance is available from pre-shipment
& post shipment credit.
 Need based limit, depending on the normal trade
terms and credit period given to overseas buyers by
exporters not exceeding 180 days.

30. TTiimmee ppeerriioodd
RReevviisseedd AAnnnnuuaall IInntteerreesstt
RRaattee %%pp..aa.. ** ww..ee..ff AAuugguusstt
1100,, 22000099
IInntteerreesstt ((%% pp..aa..))
1122 mmoonntthhss -- 1133 mmoonntthhss 66..5500
1144 mmoonntthhss -- 3366 mmoonntthhss 77..0000
1144 mmoonntthhss -- 3366 mmoonntthhss 77..5500
FFoorr SSeenniioorr
CCiittiizzeennss
77..00
77..55
88..00

31.  As an apex financial institution for
promotion, financing and development of
industry in the small scale sector, SIDBI
meets the varied developmental needs of
the Indian SSI sector by its wide-ranging
Promotional and Developmental (P&D)
activities.
 The activities are as follows:
◦ Enterpreneurship Development Programmes.
◦ Management Development Programmes.
◦ Technology Upgradation Programmes.

32.  This fund was setup in the year 1996 by the SIDBI
with an initial capital of 200 crores.
 It was setup for the purpose of encouraging the
existing small scale industrial units to modernise
production facilities and adopt improved and
updated technology for strengthning export
capabalities.
 For availing benefits under this scheme the unit
have to prepare an estimate for modernisation &
submit it to SIDBI.
 The sanction of funds is made depending upon the
estimate submited.

33.  SIDBI is participating in the Venture
capital fund set by public sector
institutions as well as private companies
to the extent of Rs,50,00,000 of total
capital of the fund required.
 The fund should be didicated to financing
small industry preferabally the most risky
one.

34.  In order to provide equity type assistance,
SIDBI is operation a National Equity Fund
Scheme.
 The equity capital loan to the extent of
2.5lakh is sanctioned to each project
provided the profect qualities under this
scheme.

35.  One of the constraints faced by
Entrepreneurs is the lack of own resources to
promote the minimum promoter contribution.
 Hence, SIDBI introduced seed money scheme
for the benefit of entrepreneurs.
 Seed money is available through DIC { Direct
Industry Centre } to those entrepreneur who
are technically qualified but lack of own
capital.

36. Sikander Kushwaha
Xavier Institute of Development Studies
and Action, Jabalpur
09/03/09
DIC
XIDAS, Jabalpur 36

37.  To develop entrepreneur skills of people.
 To motivate for self employment.
 To providing all the necessary facility in one
09/03/09
DIC
XIDAS, Jabalpur 37
roof.
 To reduce regional imbalance of development.
 To Cheek in migration

38. All the services and support required by small
entrepreneurs is provided under the single roof of the
District Industries Centre. For comprehensive
understanding of DIC I am taking an example of Gujarat’s
district Centre.
Till 1997gujrat has set up 23 district Industrial Centers ,
few of them are : Amreli, Bhavnagar, Kutch, Junagadh,
Sabarkantha, Banaskantha, Panchmahal, Bharuch,
Surendranagar, Mehsana, Valsad, Surat, Vadodara,
Kheda, Ahmedabad, Rajkot ,Jamnagar ,Ganadhinagar
etc.
09/03/09
DIC
XIDAS, Jabalpur 38

39. 09/03/09
DIC
XIDAS, Jabalpur 39
Till March 31st 1998,
422 district industries
centers (DICs) have
been set up covering
431districts of
country leaving out
the metropolitan cities
and some new
districts.
S. No Particular No. of Units/ Beneficiary
1. New units established
a. artisans
b. b. small scale
industries
3,16,169
1,06,0211
2. Credit provided by
financial institution
(RS. In cr.)
89,080
3. Additional employment
generated
13, 33,024
Source: (Khanka, 2001:164)

40. 09/03/09
 Registration
 Infrastructure Assistance
 Incentive Scheme
 Seminars
 Others Activities
 Self Employment scheme
 Co-operative Package Scheme
DIC
XIDAS, Jabalpur 40