UNIT-4

OBJECTIVES OF FINANCIAL INSTITUTIONS

 Financial Institutions intends to help people secure financial services and products
at economical prices such as deposits, fund transfer services, loans, insurance,
payment services, etc.
 It aims to establish proper financial Institutions to cater to the needs of the poor people.
These Institutions should have clear-cut regulations and should maintain high standards
that are existent in the financial industry.
 Financial Institutions aims to build and maintain financial sustainability so that
the less fortunate people have a certainty of funds which they struggle to have.
 Financial Institutions also intends to have numerous Institutions that offer affordable
financial assistance so that there is sufficient competition so that clients have a lot of
options to choose from. There are traditional banking options in the market. However,
the number of Institutions that offer inexpensive financial products and services is very
minimal.
 Financial Institutions intends to increase awareness about the benefits of financial
services among the economically underprivileged sections of the society.
 The process of financial Institutions works towards creating financial products
that are suitable for the less fortunate people of the society.
 Financial Institutions intends to improve financial literacy and financial awareness
in the nation.
 Financial Institutions aims to bring in digital financial solutions for the
economically underprivileged people of the nation.
 It also intends to bring in mobile banking or financial services in order to reach the
poorest people living in extremely remote areas of the country.
 It aims to provide tailor-made and custom-made financial solutions to poor people
as per their individual financial conditions, household needs, preferences, and
income levels.

1
CENTRAL GOVERNMENT INITIATIVES

1. Pradhan Mantri Jan Dhan Yojana (PMJDY):

Hon’ble Prime Minister announced Pradhan Mantri Jan Dhan Yojana as the National
Mission on Financial Institutions in his Independence Day address on 15th August 2014, to
ensure comprehensive financial Institutions of all the households in the country by providing
universal access to banking facilities with at least one basic bank account to every household,
financial literacy, access to credit, insurance and pension facility. Under this, a person not
having a savings account can open an account without the requirement of any minimum balance
and, in case they self-certify that they do not have any of the officially valid documents required
for opening a savings account, they may open a small account.
Thus, PMJDY offers unbanked persons easy access to banking services and awareness about
financial products through financial literacy programmes. In addition, they receive a RuPay
debit card, with inbuilt accident insurance cover of Rs. 2 lakh, and access to overdraft facility
upon satisfactory operation of account or credit history of six months. Further, through Prime
Minister’s Social Security Schemes, launched by the Hon’ble Prime Minister on 9th May 2015,
all eligible account holders can access through their bank accounts personal accident insurance
cover under Pradhan Mantri Suraksha Bima Yojana, life insurance cover under Pradhan Mantri
Jeevan Jyoti Bima Yojana, and guaranteed minimum pension to subscribers under Atal Pension
Yojana.

PMJDY was conceived as a bold, innovative and ambitious mission. Census 2011
estimated that out of 24.67 crore households in the country, 14.48 crore (58.7%) had access to
banking services. In the first phase of the scheme, these households were targeted for
Institutions through opening of a bank account within a year of launch of the scheme. The
actual achievement, by 26th January 2015, was 12.55 crore. As on 27.3.2019, the number of
accounts has grown to 35.27 crore. Further, in 2011, only 0.33 lakh SSAs had banking facility
and through provision of Bank Mitras in 1.26 lakh branchless SSAs, banking services were
extended throughout rural India. The inclusive aspect of this is evident from the fact that 20.90
crore (60%) of PMJDY accounts are in rural areas and 18.74 crore (over 53%) PMJDY account
holders are women.

2
The deposit base of PMJDY accounts has expanded over time. As on 27.3.2019, the deposit
balance in PMJDY accounts was Rs. 96,107 crore. The average deposit per account has more
than doubled from Rs. 1,064 in March 2015 to Rs. 2,725 in March 2019.
The Bank Mitra network has also gained in strength and usage. The average number of
transactions per Bank Mitra, on the Aadhaar Enabled Payment System operated by Bank
Mitras, has risen by over eightyfold, from 52 transactions in 2014-15 to 4,291 transactions in
2016-17.

2. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY):

The PMJJBY is available to people in the age group of 18 to 50 years having a bank account
who give their consent to join / enable auto-debit. Aadhar is the primary KYC for the bank
account. The life cover of Rs. 2 lakh is for the one year period stretching from 1st June to 31st
May and is renewable. Risk coverage under this scheme is for Rs. 2 lakh in case of death of the
insured, due to any reason. The premium is Rs. 330 per annum which is to be auto-debited in
one installment from the subscriber’s bank account as per the option given by him on or before
31st May of each annual coverage period under the scheme. The scheme is being offered by the
Life Insurance Corporation and all other life insurers who are willing to offer the product on
similar terms with necessary approvals and tie up with banks for this purpose. As on 31st
March, 2019, cumulative gross enrollment reported by banks subject to verification of
eligibility, etc. is over 5.91 crore under PMJJBY. A total of 145763 claims were registered
under PMJJBY of which 135212 have been disbursed.

3. Pradhan Mantri Suraksha Bima Yojana (PMSBY):

The Scheme is available to people in the age group 18 to 70 years with a bank account
who give their consent to join / enable auto-debit on or before 31st May for the coverage period
1st June to 31st May on an annual renewal basis. Aadhar would be the primary KYC for the
bank account. The risk coverage under the scheme is Rs. 2 lakh for accidental death and full
disability and Rs. 1 lakh for partial disability. The premium of Rs.12 per annum is to be
deducted from the account holder’s bank account through ‘auto-debit’ facility in one instalment.
The scheme is being offered by Public Sector General Insurance Companies or any other
General Insurance Company who are willing to offer the product on similar terms with
necessary approvals and tie up with banks for this purpose. As on 31st March, 2019, cumulative
gross enrolment reported by Banks subject to verification of eligibility, etc. is over 15.47 crore

3
under PMSBY. A total of 40,749 Claims were registered under PMSBY of which 32,176 have
been disbursed.

4
 4. Atal Pension Yojana (APY):

APY was launched on 9th May, 2015 by the Prime Minister. APY is open to all saving
bank/post office saving bank account holders in the age group of 18 to 40 years and the
contributions differ, based on pension amount chosen. Subscribers would receive the guaranteed
minimum monthly pension of Rs. 1,000 or Rs. 2,000 or Rs. 3,000 or Rs. 4,000 or Rs. 5,000 at
the age of 60 years. Under APY, the monthly pension would be available to the subscriber, and
after him to his spouse and after their death, the pension corpus, as accumulated at age 60 of the
subscriber, would be returned to the nominee of the subscriber. The minimum pension would be
guaranteed by the Government, i.e., if the accumulated corpus based on contributions earns a
lower than estimated return on investment and is inadequate to provide the minimum
guaranteed pension, the Central Government would fund such inadequacy. Alternatively, if the
returns on investment are higher, the subscribers would get enhanced pensionary benefits.
In the event of pre-mature death of the subscriber, Government has decided to give an option to
the spouse of the subscriber to continue contributing to APY account of the subscriber, for the
remaining vesting period, till the original subscriber would have attained the age of 60 years.
The spouse of the subscriber shall be entitled to receive the same pension amount as that of the
subscriber until the death of the spouse. After the death of both the subscriber and the spouse,
the nominee of the subscriber shall be entitled to receive the pension wealth, as accumulated till
age 60 of the subscriber. As on 31st March, 2019, a total of 149.53 lakh subscribers have been
enrolled under APY with a total pension wealth of Rs. 6,860.30 crore.

5. Pradhan Mantri Mudra Yojana:

The scheme was launched on 8th April 2015. Under the scheme a loan of upto Rs.
50,000 is given under sub-scheme ‘Shishu’; between Rs. 50,000 to 5.0 Lakhs under sub-scheme
‘Kishore’; and between 5.0 Lakhs to 10.0 Lakhs under sub-scheme ‘Tarun’. Loans taken do not
require collaterals. These measures are aimed at increasing the confidence of young, educated or
skilled workers who would now be able to aspire to become first generation entrepreneurs;
existing small businesses, too, will be able to expand their activates. As on 31.03.2019, Rs.
3,21,722 crores sanctioned (Rs. 142,345 cr. - Shishu, Rs. 104,386 cr. Kishore and Rs. 74,991 cr.
- Tarun category), in 5.99 crores accounts.

5
 6. Stand Up India Scheme:

Government of India launched the Stand Up India scheme on 5th April, 2016. The
Scheme facilitates bank loans between Rs.10 lakh and Rs.1 crore to at least one Scheduled
Caste/ Scheduled Tribe borrower and at least one Woman borrower per bank branch for setting
up greenfield enterprises. This enterprise may be in manufacturing, services or the trading
sector. The scheme which is being implemented through all Scheduled Commercial Banks is to
benefit at least 2.5 lakh borrowers. The scheme is operational and the loan is being extended
through Scheduled Commercial Banks across the country.
Stand Up India scheme caters to promoting entrepreneurship amongst women, SC & ST
category i.e those sections of the population facing significant hurdles due to lack of
advice/mentorship as well as inadequate and delayed credit. The scheme intends to leverage the
institutional credit structure to reach out to these underserved sectors of the population in
starting greenfield enterprises. It caters to both ready and trainee borrowers.
To extend collateral free coverage, Government of India has set up the Credit Guarantee Fund
for Stand Up India (CGFSI). Apart from providing credit facility, Stand Up India Scheme also
envisages extending handholding support to the potential borrowers. It provides for
convergence with Central/State Government schemes. Applications under the scheme can also
be made online on the dedicated Stand Up India portal(www.standupmitra.in). As on
31.03.2019, Rs. 16,085 crore has been sanctioned in 72,983 accounts (59,429 – women, 3,103-
ST and 10,451 – SC).

7. Pradhan Mantri Vaya Vandana Yojana:

The ‘Pradhan Mantri Vaya Vandana Yojana ’ has been launched by the Government to
protect elderly persons aged 60 years and above against a future fall in their interest income due
to the uncertain market conditions, as also to provide social security during old age. The scheme
is implemented through the Life Insurance Corporation of India (LIC) and provides an assured
return of 8% per annum for 10 years . Mode of pension payment under the Yojana is on a
monthly, quarterly, half-yearly or annual basis depending on the option exercised by the
subscriber.
The scheme was initially open for subscription for a period of one year i.e. from 4th May, 2017
to 3rd May, 2018. Further, the minimum purchase price under the scheme was Rs.1.5 lakh per
family for a minimum pension of Rs. 1,000/- per month and the maximum purchase price was
Rs.7.5 lakh per family for a maximum pension of Rs.5,000/- per month.
In pursuance to Budget Announcement 2018-19, the Pradhan Mantri Vaya Vandana Yojana has
been extended up to 31st March, 2020. The limit of maximum purchase price of Rs. 7.5 lakh
per family under the scheme has also been enhanced to Rs 15 lakh per senior citizen.
6
Accordingly, the maximum pension admissible under the scheme is now Rs.10,000/- per
month.

7
STATE GOVERNMENT INITIATIVES

1. WE Hub - Women Entrepreneurs Hub:

WE Hub is a start-up incubator exclusively for women entrepreneurs. Through WE Hub

aims to support women entrepreneurs with innovative ideas, solutions and entities focusing on
emerging areas in technology. WE Hub will also support under-explored / unexplored sectors
along with the Service sector. The mandate and goal of WE Hub is to eliminate financial,
societal and support barriers for women and help them succeed in their enterprises.

2. T-Fiber:

T-Fiber aims at creating a scalable, robust, resilient, secure and long-lasting digital
infrastructure to deliver various services, applications, content from Government and service
providers. With a state-of-the-art network infrastructure, it is designed to achieve the goal of
‘Digital Telangana’. Affordable & reliable high-speed broadband connectivity is provided to
every household, government and private institutions in Telangana. T-Fiber provides high-
speed broadband connectivity to over 3.5 Cr. people and institutions in Telangana. T-Fiber will
also form the basic platform for the provision of a number of services like e-governance, e-
health, e-commerce, e-banking, video on demand, etc.

3. TASK:

A unique skill development initiative from IT, E&C Department aimed at improving the
quality of graduates coming out of colleges by imparting industry-grade skill sets. More than
800 colleges have registered with TASK and over 1 lakh youth from across Telangana have
been skilled since TASK’s inception in June 2015. TASK has also bagged the prestigious
SKOCH Platinum award for Revamping Skilling Initiatives for youth in Telangana.

UTI (Unit Trust of India)

8
INTRODUCTION:
 1963- Established by an act of parliament, set up, regulated and administered by RBI.
 1964- Launched first mutual fund scheme, Unit Scheme 1964 (US-1964)
 1964- Established on 1st February 1964 under the UTI Act,1963 by Govt of India.
 1978- Delinked from RBI and IDBI took the regulatory and administrative control.

SOURCE OF FUNDS:
The contributors to the initial capital of 5 crores to the US-64 scheme were:
 Reserve Bank of India
 Life Insurance Corporation
 State Bank of India (SBI)
 And its subsidiaries & other scheduled banks including foreign banks.
 Other financial institutions.

OBJECTIVES:
 To stimulate and pool the savings of low-income groups.
 To give them an opportunity to share the benefits and prosperity of rapidly growing
industrialization in the country.
 To channelize savings to industrial growth
 To invest the money raised from the sale of units and its own capital in corporate and
industrial securities.
 To pay dividends to the unit holders.

FUNCTIONS:
9
  To sell units to investors in different parts of the country.
 To cover small savings into industrial finance
 To mobilize savings of community through sale of units
 To provide merchant banking and investment advisory services.
 To serve unit holders along the length and breadth of the country.

SCHEMES:
 Unit scheme-1964 (flagship scheme)
 Capital Gain unit scheme 1983
 Children’s gift growth fund unit scheme, 1992
 Senior Citizen unit plan, 1993
 Monthly income unit schemes issued in 1987, 1988, 1989.

NABARD
10
INTRODUCTION:

National Bank for Agriculture and Rural Development (NABARD) is an

Apex Development Financial Institution in India. NABARD is a Development Bank with a
mandate for providing and regulating credit and other facilities for the promotion and
development of agriculture, small-scale industries, cottage and village industries, handicrafts
and other rural crafts and other allied economic activities in rural areas with a view to
promoting integrated rural development and securing prosperity of rural areas.
The initial corpus of NABARD was Rs.100 crores. Consequent to the revision in the
composition of share capital between Government of India and RBI, the paid-up capital as on
31 March 2015, stood at Rs.5000 crore with Government of India holding 4,980 crore (99.60%)
and Reserve Bank of India Rs.20.00 crore (0.40%).

HISTORY OF NABARD:

 NABARD was established on 12th July in 1982.

 NABARD was established by the B. Shivaraman.
 NABARD head quarter in MUMBAI. It has 30 regional office in various state
 Chairman- Dr. Harsh Kumar Bhanwala.

ROLE OF NABARD:

Roles of NABARD

Bringing about or
Providing refinancing Evaluating,monitorin
promoting
to lending institutions g and inspecting the
institutional
in rural areas client banks
develpoment

OBJECTIVES OF NABARD:
11
 i. More than 50% of the rural credit is disbursed by the Co-operative Banks and Regional
Rural Banks.
ii. NABARD is responsible for regulating and supervising the functions of Co-operative
banks and RRBs.
iii. NABARD works towards providing a strong and efficient rural credit delivery system,
capable of taking care of the expanding and diverse credit needs of agriculture and rural
development.

FUNCTIONS OF NABARD:
Credit Functions:
i. Framing policy and guidelines for rural financial institutions.
ii. Providing credit facilities to issuing organizations
iii. Monitoring the flow of ground level rural credit.

Development Functions:
i. Help cooperative banks and Regional Rural Banks to prepare development actions plans
for themselves.
ii. Help Regional Rural Banks and the sponsor banks to enter into MoUs with state
governments and cooperative banks to improve the affairs of the Regional Rural Banks.
iii. Provide financial assistance to cooperative banks for building improved management
information system, computerization of operations and development of human
resources.

Supervisory Functions:
i. Undertakes inspection of Regional Rural Banks (RRBs) and Cooperative Banks (other
than urban/primary cooperative banks) under the provisions of Banking Regulation Act,
1949.
ii. Undertakes inspection of State Cooperative Agriculture and Rural Development Banks
(SCARDBs) and apex non- credit cooperative societies on a voluntary basis.
iii. Provides recommendations to Reserve Bank of India on issue of licenses to Cooperative
Banks, opening of new branches by State Cooperative Banks and Regional Rural Banks
(RRBs.

12
 STATE FINANCIAL CORPORATION
Introduction:
 The State Finance Corporations (SFCs) are an integral part of institutional finance
structure of a country. 
 At present in India, there are 18 state finance corporations (out of which 17 SFCs were
established under the SFC Act 1951). 
 The authorized Capital of a State Financial Corporation should be within the minimum
and maximum limits of Rs. 50 lakhs and Rs. 5 crores which are fixed by the State
government.

Organisation and Management:

 A Board of ten directors manages the State Finance Corporations. 
 The State Government appoints the managing director generally in consultation with
the RBI and nominates the name of three other directors.
 All insurance companies, scheduled banks, investment trusts, co-operative banks, and
other financial institutions elect three directors.

Functions:
 The SFCs provides loans mainly for the acquisition of fixed assets like land, building,
plant, and machinery.
 The SFCs help financial assistance to industrial units whose paid-up capital and reserves
do not exceed Rs.3 crore.
 The SFCs underwrite new stocks, shares, debentures etc., of industrial units.
 The SFCs grant guarantee loans raised in the capital market by scheduled banks,
industrial concerns, and state co-operative banks to be repayable within 20 years.

Problems:
 No Independent Organization
 Corruption
 Effect of the World Bank and WTO Policies

Drawbacks:
 Higher rate of interests and hard terms and conditions.
 The financial resources of SFCs are limited and inadequate.

Conclusion:
 State financial corporations have not been able to become popular due to poor
implementation and poor investments that they have undertaken.
 Business decisions must be taken with a purely business perspective in mind and
political, emotional factors should not play a major factor while making business
decisions.

13
 Small Industries Development Corporation

Definition: -
'Small Industries Development Corporations ('SIDCO') are state-owned companies or agencies
in the states of India which were established at various times under the policy of Government of
India for the promotion of small scale industries. Established under Companies Act 1956 .

 Provides infrastructure facilities, distribute essential raw materials, market the products
and undertake civil and electric works.
 Public sector undertaking

A few of the SIDCOs are:

 Kerala Small Industries Development Corporation Limited

 Small Industries Development Corporation of Jammu and Kashmir

 Tamil Nadu Small Industries Development Corporation Limited (TANSIDCO)

Need for Small Industries Development Corporation (SIDCO) :-

 In many state governments, for the promotion of small scale industries, a separate
corporation has been set up which is known as Small Industries Development
Corporation. They undertake all kinds of activities for the promotion of small scale
industries. Right from the stage of installation, to the stage of commencing production,
these Corporations help small scale industries (SSI) in many ways.
 In short, they provide infrastructure facilities to small scale industries. Due to the
assistance provided by SIDCO, many backward areas in most of the states have been
developed. So, SIDCO has also been responsible in spreading the industrial activity
throughout several states.

Objectives of SIDCO :-
1. The main objective of SIDCO is to stimulate the growth of industries in the small scale
sector
2. To provide infrastructure facilities like roads, drainage, electricity, water supply, etc is
one of the primary objective of SIDCO.

3. To Promote industrial estates which will provide industrial sheds of different sizes with
all basic infrastructure facilities.
4. To Provide technical assistance through training facilities to the entrepreneurs.
5. To Promote skilled labor through the setting up of industrial training institutes.
14
Functions of SIDCO :-
1. Supplies scarce raw materials :-
Some of the scarce raw materials are procured by the corporation either from the
domestic market or from abroad and are provided to the needy small scale industries. For
this purpose, SIDCO has a number of raw material depots and these depots are procuring
various scarce raw materials, as per the requirements of small scale industries in the state.
2. Provides marketing assistance
In order to provide an efficient marketing support to small scale industries, the
corporation has taken up various schemes. In fact, the corporation participates in the tenders
floated by the state government departments and also with the DGS & D (Director General
of Supplies and Disposal). SIDCO makes advance payments for obtaining orders and
distribute them among the various small scale units. SIDCO also arranges for buyer —
seller meets frequently.
3. Provides export marketing assistance
To promote export marketing among the small scale industries, SIDCO has developed
websites because of which it is able to display the products of the small scale industries in
foreign markets and obtain export orders. SIDCO also helps in the small scale units taking
part in the international trade fair at New Delhi, Pragati Maidan so that the products of small
scale industries of Tamilnadu are displayed.
4. Promotes women entrepreneurs

In order to provide uninterrupted and good quality power supply, SIDCO has taken up a
plan to set up captive power plants in major industrial estates. It is now planning to set up
these plants in 10 industrial estates.
5. Promotes skill development centers

In an effort to supply skilled laborers to various small scale industries, skill development
centres are being set up in various industrial estates which will be training workers in varied
industrial activities and they will be trained in modern skill.
6. Information Technology & Telecommunication division

In addition to the above, in order to promote women entrepreneurs, a separate industrial

estate for women has been set up at Tirumullaivoyal, near Chennai, where women
entrepreneurs are trained in various fields of small scale industries.

15
 EXIM BANK

INTRODUCTION:

 The Exim bank of India is a public sector financial institution established under the act
of Exim bank act 1981 and came into existence on 1stJanuary, 1982.

 HEAD OFFICE: Mumbai

 OPERATING: 1st march 1982.

 It was established by an act of parliment, for the purpose of financing and promoting
foreign trade.

OBJECTIVES:

1. Financing of export and import of goods and services both of India and of the outside of
India.
2. Providing finance for joint ventures in foreign countries.
3. Undertaking merchant banking functions of companies engaged in foreign trade.
4. Providing technical and administrative assistance to the parties engaged in export and
import business.
5. Providing advance information and business advisory services to Indian exports in
respect of multilaterally funded projects overseas.

EXIM MITRA –EXIM Bank: Export-Import Bank of India:

It is created by EXIM bank to promote digital India, a one-step solution for all export and
import needs. It is an online platform to delivery trade-related information and provides
access to insurance for exporters and importers. 

FUNCTIONS:
1. Corporate banking group:
Corporate banking group handles various financing programs for exporters, importers and
overseas investment by Indian companies. 
2. Project finance/trade finance:
Project finance group deals with the services related to export credit such as pre-shipment
credit, suppliers credit. The projects related to the financing of exporttransactions of the
agricultural sector are also handled by this group. 

16
3. Export services group:
Export services group provides services such as value-added information for promoting
investments and advisory services.
4. Export marketing group:
Export marketing group provides loans/assistance for exporters (example Indian company) to
perform export operations to overseas markets.
5. Support services group:
Support services group render services which include areas of planning, research, corporate
finance, loan recovery, etc.

6. Small and medium enterprises:

Various lending/ financial assistant programs are formed to handle credit proposals from small
and medium enterprises (SME).

Board of members in EXIM Bank: Export-Import Bank of India:

The Exim bank constitutes of the board of directors with managing director and chairman.
Currently, they are 13 members body. The board of membership consists of:
Representatives of the government of India
Reserve bank of India
IDBI – Industrial Development Bank of India
ECGC – Export Credit Guarantee Corporation of India
Representatives of commercial banks
Representatives of exports
Chairman and managing director

17
NATIONAL SMALL INDUSTRIES CORPORATION LTD. (NSIC)
The National Small Industries Corporation Ltd. (NSIC), an ISO 9000 certified company, since

its establishment in 1955, has been working to fulfill its mission of promoting, aiding and

fostering the growth of small-scale industries and industry related small-scale

services/businesses in the country.

Over a period of six decades of transition, growth and development, the NSIC has proved its
strength within the country and abroad by promoting modernization, up gradation of
technology, quality consciousness, strengthening linkages with large and medium enterprises
and enhancing export projects and products from small-scale enterprises.

At present, the NSIC operates through 6 Zonal Offices, 26 Branch Offices, 15 Sub-offices, 5

Technical Services Centers, 3 Extension Centers and 2 Software Technology Parks supported

by a team of over 5000 professionals spread across the country. To mange operations in Gulf

and African countries, the NSIC operates from its offices in Dubai and Johannesburg.

Quality Objective:

 To enhance reach of the Corporation resulting in growth in its business.

 To achieve operational efficiency and self-sustenance by attaining better productivity
and profitability.
 To upgrade the professional skills of all employees keeping in pace with business needs.
 To provide safe, clean, hygienic & congenial work environment for effective
contribution by every employee.

Functions of NSIC:
NSIC provides a wide range of services, predominantly promotional in character, to small-scale
industries.

Its main functions are to:

a. Provide machinery on hire-purchase scheme to small-scale industries.

b. Provide equipment leasing facility.

18
 c. Help in export marketing of the products of small-scale industries.

d. Participate in bulk purchase programme of the Government.

e. Develop prototype of machines and equipments to pass on to small-scale industries for

commercial production.

f. Distribute basic raw material among small-scale industries through raw material depots.

g. Help in development and up-gradation of technology and implementation of modernization

programmes of small-scale industries.

h. Impart training in various industrial trades.

i. Set up small-scale industries in other developing countries on turn-key basis.

j. Undertake the construction of industrial estates.

SMALL SCALE INDUSTRIES BOARD (SSI BOARD)

Small Scale Industries Board (SSI Board) is the apex advisory body constituted to render advice to the

Government on all issues pertaining to the small scale 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. The Additional Secretary and Development

Commissioner (SSI) is the Member Secretary of the Board. The Board is serviced by the Board and

Policy Division in the office of the DC (SSI)

STATE SMALL INDUSTRIES CORPORATIONS (SSIC)

Many State Governments have setup Small Industries Corporations in order to undertake a number of

commercial activities. The most important of these activities are distribution of scarce raw material,

supply of machinery on hire purchase basis, constitution and management of industrial estates,

19
procurement of orders from Government Departments, assistance in export marketing and in certain

cases provision of financial, technical and managerial assistance to small enterprises.

SOCIAL INCLUSION
What is Social Inclusion?
• Social inclusion refers to a policy designed to ensure that all people are able to
participate in society regardless of their background or specific characteristics, which
may include race, language, culture, gender, disability, social status, age, and other
factors

Why social inclusion?

• Benefits for organizations, programs and services:
• Effective service delivery
• The value of diversity
• Human rights legislation
• Benefits for the community
• Social capital, human capital
• Population health and healthy communities
• Crime prevention through social development
 A framework for understanding day-to-day issues within
communities, organizations and programs
 Three important ideas
• Social inclusion is both a process and an outcome
• Recognizes that identity takes many forms
• There are multiple dimensions of social inclusion

20
1. A process and an outcome
• As a process
• Open, welcome, and supported participation of all people in planning and
decision making
• Active engagement in dialogue and debate
• Ongoing development
• As an outcome
• Universal access to meaningful opportunities for
participation
• Clear goals and targets are established
• Evaluation and planning

2. Multiple Dimensions of Inclusion

• Diversity
• Human development
• Involvement and engagement
• Relationship to living conditions
• Connection to community services

21