This document outlines the various institutions that support small and medium enterprises in India at the central and state level. At the central level, key institutions include the Small Scale Industries Board, Khadi and Village Industries Commission, Small Industries Development Organization, National Small Industries Corporation, and National Science and Technology Entrepreneurship Development Board. At the state level, supporting institutions include Directorates of Industries, District Industries Centers, State Financial Corporations, State Industrial Development Corporations, and State Small Industrial Development Corporations.

1. INSTITUTIONS
SUPPORTING SMALL
AND MEDIUM
ENTERPRISES
PRESENTED
BY
SANJEEV KUMAR PATEL
MONIRBA (University of Allahabad)

2. STATE
LEVEL
• DIs
• DICs
• SFCs
• SIDCs/SIICs
• SSIDCs
OTHERS
• Industry Association
• Non Governmental
Organizations
• R & D Laboratories
CENTRAL
LEVEL
• SSI Board
• KVIC
• SIDO
• NSIC
• NSTEDB
• NPC
• NISIET
• NIESBUD
• EDI

3. SSI Board
SSI Board
Small Scale Industries Board was established in 1954 to facilitate the
coordination and inter-institutional linkages for the development of SSI sector.
 The Board is an apex advisory body constituted to render advice to the
government on all issues pertaining to the SSI sector.
 The Board is reconstituted every two years and is headed by the Minister In
charge of Small Scale Industries in the Government of India. The Board
comprises among others State Industry Ministers, some Members of
Parliament, Secretaries of various Departments of Government of
India, Financial institutions, public sector undertakings, industry associations
and eminent experts in the field

4.  The Board operates broadly in the following areas:
 Enterprise and skill development
 Technology upgradation.
 Access to Credit.
 Marketing Assistance.
 Legal Framework.
 Development of industries in specific region like Northeast.

5. KHADI AND VILLAGE INDUSTRIES
COMMISSION (KVIC)
 Statutory body formed by the Government of India, under the Act of Parliament,
'Khadi and Village Industries Commission Act of 1956.
 Responsible for planning, promotion, organization and implementation of the program
for the development of Khadi and Village industries in rural areas with the help of
other rural development agencies engaged in rural development.
 KVIC’s functions also comprise building up a reserve of raw materials and provide
supply to producers.
 Creation of common service facilities for processing of raw materials and provision of
marketing of KVIC products.

6. Continued . . .
 KVIC is entrusted with the task of providing financial assistance to
institutions or persons engaged in the development and operation of Khadi
and village industries.
 The KVIC is also charged with the responsibility of encouraging and
promoting research in the production techniques and equipment employed
in the Khadi and Village Industries sector and providing facilities for the
study of the problems relating to it
 It takes steps to ensure genuineness of the products and sets standards of
quality and ensure that the products of KVI do conform to the standards.

7. Small Industries Development
Organization (SIDO)
 Established in 1954 on recommendation of Ford Foundation.
 The strength of SIDO lies in its countrywide spread of almost 100
offices/service centres, which employ over 2500 staff, mostly technical
 SIDO partners and networks with other national providers of support
and financial services to SMEs such as the Small Industries
Development Bank of India (SIDBI), the National Small Industries
Corporation (NSIC), the Bureau of Indian Standards (BIS), the Reserve
Bank of India (RBI) (India's Central Bank) and relevant agencies of the
Governments of the 28 States of the country.

8. Continued . . .
 SIDO provides services to small industry throughout the country by
implementing a broad program of activities and services including the
following:
 Entrepreneurship Development
 Tool Room Services
 Testing Centres
 Extension Services
 R&D Services
 Consultancy Services
 Policy Development

9.  Established in 1955 by GOI with the main objectives to promote, aid
and foster the growth of SSIs in the country.
Name of the Centre Focus area
Chennai Leather & Footwear
Howrah General Engineering
Hyderabad Electronics & Computer Application
New Delhi Machine Tools & related activities
Rajkot
Energy Audit & Energy Conservation
activities
Rajpura (Pb) Domestic Electrical Appliances
Aligarh (UP) Lock Cluster & Die and Tool making

10.  NSIC also helps in organizing supply of raw materials like coal,
iron, steel and other materials and even machines needed by
small scale private industries.
 Main services provided by NSIC are:
- Machinery and Equipment (Hire Purchase / Lease scheme)
- Financial Assistance Scheme.
- Assistance for Procurement of Raw Material.
- Government Store Purchase Program.
- Technology Transfer Centre (TTC).

11.  Established in 1982 by GOI, is an institutional mechanism to promote
knowledge-driven and technology-intensive enterprises.
 Aims to convert "job-seekers" into "job-generators" through Science
& Technology (S&T) interventions.
Major objectives are:
 Promote and develop high-end entrepreneurship for S&T manpower
as well as self-employment by utilizing S&T infrastructure and
methods.

12.  Facilitate and conduct various informational services relating to
promotion of entrepreneurship.
 Network agencies of support system, academic institutions and R&D
organizations to foster self-employment using S&T with special focus
on backward areas.
 Act as a policy advisory body with regard to entrepreneurship

13. National Institute for Small Industry
Extension and Training (NISIET)
 Set up in early 1950s, NISIET acts an important resource and
information centre for small units and undertakes research and
consultancy for small industry development.
 An autonomous body of the Ministry of Small Scale Industries, the
institute achieves its objectives through training, consultancy, research
and education, to extension and information services.
 In 1984, UNIDO has recognized NISIET as an institute of meritorious
performance under its Centre of Excellence Scheme to extend aid.

14.  NIESBU is registered as a Society under Societies Registration Act, 1860 started
functioning from 6th July, 1983.
 It is a premier organisation of Ministry of Micro, Small and Medium
Enterprises engaged in :-
 Training
 consultancy
 research, etc. in order to promote entrepreneurship.
 The Institute has trained more than 2.98 lakh trainees including 3,000 persons
from more than 125 countries till 31st July, 2014.

15. Continued . . .
 To evolve standardised materials and processes for selection, training, support
and sustenance of entrepreneurs, potential and existing.
 To help/support and affiliate institutions/organisations in carrying out
training and other entrepreneurship development related activities.
 To provide vital information and support to trainers, promoters and
entrepreneurs.
 To train trainers, promoters and consultants in various areas of
entrepreneurship development
 To share international experience and expertise in entrepreneurship
development.
 Cluster Intervention

16. State Level Institutions

17. DIs (Directorate of Industries)
 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 scale industries.
 The Central policies for the SSI sector serve as guidelines but each State evolves
its own policy and package of incentives.
 The Commissioner/ Director of Industries in all the States/UTs, oversee the
activities of field offices, the District Industries Centers (DICs) at the district
level .

18. DICs (District Industries Centers)
 In order to extend promotion of small-scale and cottage
industries in cities 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.

19. Continued . . .
 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

20. SFCs ( State Financial Corporations)
 It was set up under the Industrial Finance Corporation Act, 1948.
 There are 18 SFCs in the country , of which 17 were established under SFCs act
1951.
Main objectives is to finance and promote small and medium enterprises in their
respective states for achieving balanced regional growth.
 Catalyze investment, generate employment and widen ownership base of industry.
 Financial assistance is provided by way of term loans, direct subscription to
equity/debentures, guarantees, discounting of bills of exchange and seed capital
assistance.
 SFCs operate a number of schemes to refinance of IDBI and SIDBI and also extend
equity type assistance.

21.  SFCs have tailor-made schemes for artisans and special target groups
such as SC/ST, women, ex-servicemen, physically challenged.
 Also provide financial assistance for small road transport operators,
hotels, tourism-related activities, hospitals.
 Under Single Window Scheme of SIDBI, SFCs have also been extending
working capital along with term loans to mitigate the difficulties faced
by SSIs in obtaining working capital limits on time.

22. SIDC / SIIC and SSIDC
State Industrial Development / Investment Corporation (SIDC/SIIC) –
 Set up under the Companies Act, 1956, as wholly owned undertakings of the State
governments, act as catalysts in respective states.
 SIDC helps in developing land, providing developed plots, together with facilities
like roads, power, water supply, drainage and other amenities.
 They also extend assistance to small-scale sector by way of term loans, subscription
to equity and promotional services.
 11 out of 28 SIDCs in the country also function as SFCs and are termed as Twin-function
of IDCs.
 Established under Companies Act, 1956, as State government undertaking, caters to
small, tiny and village industries in respective states.

23. State Small Industrial Development Corporations (SSIDC)
 the functions SSIDC performs: -
(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 and their
maintenance.
(vi) Providing management assistance to production units.

24. Other State-level agencies Extending
Facilities for SSI Promotion
 State Infrastructure Development Corporations
 State Cooperative Banks
 Regional Rural Banks
 State Export Corporations
 Agro Industries Corporations
 Handloom and Handicrafts Corporations

25. REFERENCES
 dcmsme.gov.in
 kvic.org.in
 sido.go.tz
 wikipedia.org
 wipo.int
 nsic.co.in
 nstedb.com
 udyogbandhu.com