Small Industries Development Organization –

(SIDO)

By- Akbar Khan

For Group 1
SIDO
The Small Industries Development Organization (SIDO), is
one of the apex bodies of the Government of India, Ministry
of Micro, Small and Medium Enterprises, to assist the
Government in formulation of policies and programmes,
projects schemes, etc., for the promotion and development
of Micro, Small and Medium Enterprises in the country and
also coordinating and monitoring the implementation of
these policies and programmes.
• SIDO also known as Micro Small and Medium Enterprises
(MSME) Development Organization and is headed by the
Additional Secretary & Development commissioner (Micro,
Small and Medium Enterprises).

• Promotion and development of Micro, Small and Medium

Enterprises is primarily the responsibility of the States and
Union Territories (UTs) and the role of the Central
Government including the MSME Development
Organization in this field is to aid and assist the States/UTs
in this endeavor.
Definition of MSME:

Type Mfg. Enterprise Service Enterprise

Micro Up to Rs.25 Lakh Up to Rs.10 Lakh

Small Rs.25 Lakh to Rs.10 Lakh to

Rs.5.0 cr. Rs.2.0 cr.

Medium Rs.5.0 cr. to Rs.2.0 cr. to

Rs.10.0 cr. Rs.5.0 cr.

(Values indicate investment in plant & machinery)

Thrust Areas for Promotion of MSMEs

• Adequate and Timely Credit (Term loans and Working

Capital)
• Modernization & Technological Up gradation
• Integrated Infrastructure
• Quality Improvement
• Market Promotion
• Export Promotion
• Entrepreneurship Development & Management
Development
• Capacity Building
Apex Organizations for MSMEs

• Separate Ministry for Micro, Small and Medium Industries

formed in 1999 for policy formulation and implementation

• National Board for MSMEs – Representatives from

Ministry, Financial Institutions, Industry Associations, etc.
National Level Organizations for Support to
MSMEs:
• Small Industries Development Organisation (SIDO)
• Has 10 other Institutes under it for Training and
Development in Marketing, Quality Promotion, Technology
Up gradation, Product Testing, Designing, Incubation,
Financing, Guarantees, etc.
• National Small Industries Corporation (NSIC)
• National Entrepreneurship Development Institutes (EDI,
NISIET, NIESBD, IIE)
• Small Industries Development Bank of India
• SIDBI Venture Capital Ltd. (SVCL)
• SME Rating Agency of India (SMERA)
National Manufacturing Competitiveness Program
(NMCP) of SIDO:

• Marketing Support Assistance to MSMEs

• Support for Entrepreneurial and Managerial Development
(Incubators)
• Quality Mgt. Standards and Quality Tools
• National Campaign for Investment in Intellectual Property
Rights (IPRs)
• Mini Tool Rooms with Foreign collaborations
• Others being developed
Schemes for New and Existing Enterprises:

SIDO

• Entrepreneurial & Management Development Incubators-

Business skills Development, Technology Identification,
Project/Product Selection, Opportunity Guidance,
Commercial Aspects, etc.
• Investment and Training in IPRs
• MSE Cluster Development Program-Finance for Dev. Of
New Clusters and Infrastructure in Existing ones, Common
facilities, Cost Sharing on Utilities, Marketing, etc.
• Credit Linked Capital Subsidy Scheme – For Technology
Up gradation
• Credit Guarantee for MSEs by CGTMSE

• Purchase & Price Preference Scheme for MSMEs for Govt.

Stores and Central Govt. Undertakings

• Market Development Assistance Scheme for Export

Promotion - Participation in International Exhibitions/Fairs,
Study Tours, Trade Delegations, Bar Coding Certification,
etc.
NSIC

• Marketing Assistance Scheme- International and Domestic

Exhibitions and Fairs, Consortia Marketing
• Exports – Recognized Export House- Exports of
Handicrafts, Leather goods, Hand tools, IT solutions, SSI
Projects, etc.
• Bank Credit Facilitation Scheme- Term Loan & Working
Capital - Preference to Credit Rated Companies
• Term Loan Scheme-For Machinery & Equipment -
Maximum limit Rs.5.0 Lakh
• Bills Discounting Scheme
NSIC

• Raw Material Assistance Scheme – 90 days credit, bulk

purchases, cash discounts
• Financial Support for Credit Rating
• Technical Support and Technology Transfers - Technical
Service Centers, Technology Transfer Centers
• Software Technology Parks Scheme for 100% Exports of
Software
• NSIC Training-cum-Incubation Centers
• Infomediary Services
• Techmart Exhibition – Annual International Tech Fair
SME Financing and Development Project
(SMEFDP) of SIDBI

• World Bank-led multi agency / multi activity Project on

Financing and Development of SMEs
• Project is aimed at making SME lending an attractive and
viable financing option & facilitate increased turnover and
employment in the sector.
• Technical Assistance given for strengthening credit
information system, credit rating, credit scoring, structuring
of innovative products, capacity building of the participating
banks, policy and regulatory issues and promotion of market
oriented business development services for the sector.
There are three main components of the Project

• Credit Facility
• Risk Sharing Facility
• Technical Assistance
• Direct Credit Scheme – Small and Medium Sectors
• Marketing Assistance Scheme - Term Loans
• Vendor Development – Term loans, Working Capital. &
Bills Discounting
• Guarantee Scheme for SSIs and Service Sector Units
• SME IT Loans
• Refinance Scheme through Banks and SFCs/SIDCs
• Technology Up gradation, ISO Certification, Single
Window, Composite Loan, Small Road Transport, etc.
SIDBI

• International Finance
• Loans, Letters of Credit, Forward Contracts, etc.
• Marketing Assistance for Women-Indirectly through Corporate
/Co-operatives/NGOs for market promotion activities
• Collateral Free Loans- Guarantee by CGTMSE
• Credit Linked Capital Subsidy Scheme
• Risk Capital
• Credit Rating Services - SMERA
• Venture Capital – Software & IT
- Selected Growth-oriented Sectors
 Any ?

THANK YOU