Professional Documents
Culture Documents
ENTREPRENEUR
PRESENTED BY
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KVIC -OPERATES STATE-LEVEL
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Khadi and Village Industries Boards, Registered
Institutions and C0-operative Societies and has
collectively employed 0.84 million individuals at
end-March 2000.
The KVI programme covers 0.26 million villages
in the country.
They operational strategy of KVIC includes :
To promote rural employment
To intensify industries in rural areas
To standardize and exercise quality control
To provide sales promotion assistance
To promote export incentives for design and
development
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Functions Of KVIC:
The KVIC is charged with the planning, promotion, organisation and
implementation of programs for the development of Khadi and other
village industries in the rural areas in coordination with other agencies
engaged in rural development wherever necessary.
The SFCs while giving loans to industrial units see to it that loans are secured by a PLEDGE,
MORTAGAGE, HYPOTHECATION of movable and immovable property or other tangible assets
or guarantee by the state government or scheduled commercial bank , they also accept personal
pledge by the entrepreneur . SFCs do not give loans on the basis of second mortgage.
Grant loans or advances to industrial concern repayable within a period not exceeding 20 years.
Providing guarantee for loans raised by industrial units from commercial banks and state
cooperative banks.
Providing guarantee for deferred payments in cases where industrial units have purchased capital
goods on a deferred payment basis.
To underwrite the issue of shares, bonds and debentures of industrial concerns.
To Subscribe to shares, bonds and debentures of industrial concerns.
Guarantee loans raised by industrial concerns which are re- payable within a period not exceeding
20 years and which are floated in the public market
SFCs grant loans to industrial units for the purchase of fixed capital assets like land, machinery. In
some exceptional cases, some SFCs also provide loans for working capital requirements in
combination with loans for fixed capital.
SFCs provide loans in foreign currency for the import of machinery and technical know – how,
under the IDA (International development association) and world bank tie up.
SFCs however are prohibited from subscribing directly to the shares or stock of any company
having limited liability except for underwriting purposes and granting any loans or advance on the
security of its own shares .
SFCs - Contributory to development of
small scale industries in the Indian
There are at present 18State financial Corporations and almost every
economy
state has a financial corporation of its own.
During 2000-2001 SFCs had sanctioned loans aggregating to 2800
crores and disburse Rs 2000 crores. Their assistance in the form of
loans has declined subsequently due to the existence of a large amount
of Non – Performing assets.
Over 70 % of the total assistance sanctioned and disbursed by all SFCs
is provided to small scale industries. Attempts are now being made to
strengthen the role of SFCs as regional development banks.
The SFCs sanctioned seed capital assistance under the seed capital
schemes introduced and operated by IDBI.
This assistance is available to promoters of small business units. Since
June 1989, SFCs have also been implementing special schemes of seed
capital assistance to women entrepreneurs.
Assistance is extended in the form of loan or grant or a combination of
both to voluntary agencies working for women in decentralized
industries.
List Of 18 State Financing
Corporations In India.
Assam Financial Corporation
Andhra Pradesh State Financial Corporation
Bihar State Financial Corporation
Delhi Financial Corporation
Gujarat State Financial Corporation
The Economic Development Corporation of Goa
Haryana Financial Corporation
Himachal Pradesh Financial Corporation
Jammu & Kashmir State Financial Corporation
Karnataka State Financial Corporation
Kerala Financial Corporation
Madhya Pradesh Financial Corporation
Maharashtra State Financial Corporation
Orissa State Financial Corporation
Punjab Financial Corporation
Rajasthan Financial Corporation
Tamil Nadu Industrial Development Corporation Ltd.
Uttar Pradesh Financial Corporation
West Bengal Financial Corporation
THE CURIOUS CASE OF SURABHI INDUSTRIES!
While joining a Masters degree program in Manufacturing Technology in VIT
University during June 2003, Vendhan had a dream of starting his own business
instead of taking up a job. He wanted to be in his own village and wanted to help his
villagers by becoming a job provider.
He worked with a company for four years to gain hands on experience in the field of
‘Mill Boards’ made from recycled waste paper and then prepared a business plan
and applied to the SFC for financial assistance and technical assistance. This is
widely used in packaging, textile industry and in stationery making sectors. The
business depends on the ability to source the waste paper at low cost, providing
product variants and ensuring optimal efficiency using local manpower by sharing
skills to them.
He started his Company in 2006 and his first factory came into operation in 2007 and
was called Surabhi Industries. He current employs over 50 people in his factory and
earns over Rs. 5 Lakhs every year.
Vendhan is grateful to the SFC for providing him with loans, subsidized incentives
and technical assistance under TePP.