ROLE OF DIFFERENT AGENCIES IN SMALL SCALE INDUSTRIES

SIDBI NIESBUD IDBI NABARD KSFC KIADB TESCOK

SIDBI
Established in April 2,1990 for 1-Promotion 2-Financing 3-Development of industries in the small scale sector 4-Co-ordinating the functions of other institutions engaged in similar activities.

ROLES
SCHEMES OF REFINANCE ASSISTANCE 1. Schemes for setting up SSI units-cost of project not to exceed Rs. 300 lakhs. 2. Composite loan scheme ( cottage, tiny and village industries-The loan limit not to exceed Rs.50000 repayable with in 7-8 years 3. Scheme for SC/ST and physically handicapped persons-Loan limit not to exceed Rs. 50000.

NIESBUD
1. Assisting supporting EDPs: PREPARATION OF TRAINING AIDS MATERIALS: a-manuals b- handbooks c- video films d- lesson plans e- learning text f- cases TRAINING FOR TRAINERS OR PROMOTERS DEVELOPING ENTREPRENEURIAL CULTURE- the institute strives to create climate conducive to emergence of entrepreneurs from all strata of society. Institute conducts awareness camps for schools college students.

IDBI
INDUSTRIAL DEVELOPMENT BANK OF INDIA

ROLE
Facilities including concessional finance to the State Financial Corporations and banks for their loans to the small and medium sized projects located in the specified backward districts,direct rupee loan assistance as well underwriting assistance.

NABARD
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT

ROLE OF NABARD
a) CREATING SELF HELP GROUPS b) RURAL INFRASTRUCTURE DEVELOPMENT FUND c) Watershed development d) Attracting youth to rural non farm sector e) DRIP(District rural industries project) f) Rural entrepreneurship development programme(redp)

 Marketing Rural Innovation Fund

KSFC
The KSFC was established by the government of Karnataka in 1956 under the state financial corporation act 1951 for extending financial assistance to set up tiny, small and medium scale industrial units in Karnataka. Since 1956 it is working as a regional industrial development bank of Karnataka. KSFC has a branch office in each district; some districts have more than one branch. KSFC extends lease financial assistance and hire purchase assistance for acquisition of machinery/equipment/transport vehicles. KSFC has merchant banking department which takes up the management of public issues underwriting at shores, project report preparation, deferred payment guarantee, and syndication of loans, bill discounting and similar tasks.

ROLES
KSFC give preference to the projects which are (i) Promoted by technician entrepreneur. (ii) In the small-scale sector. (iii) Located in growth centers and developing areas of the state; (iv) Promoted by entrepreneurs belonging to scheduled castes and scheduled tribes, backward classes and other weaker sections of society. (v) Characterized by high employment potential. (vi) Capable of utilizing local resources; and (vii) In tune with the declared national priorities.

OTHER IMPORTANT AGENCIES KARNATAKA

KIADB(KARNATAKA INDUSTRIAL AREAS DEVELOPMENT BOARD) TECSOK(TECHNICAL CONSULTANCY SERVICES OF KARNATAKA).

CONCLUSION
OBJECTIVE OF FINANCIAL INSTITUTIONS IS TO ASSIST AND CATER TO THE NEED OF ENTREPRENEURS AND HAVING MACRO LEVEL ADVANTAGE. IT IS ALSO IMPORTANT TO PERIODICALLY REVIEW THE SCHEMES TO FIND WHETHER IT IS ABLE TO DELIVER WHAT IT WAS MEANT FOR. IDENTIFY AREAS WHICH REQUIRE CHANGES IN ITS PRESENT FORM.

THANK YOU