Module 5 : Institutional Support

1. Module 5 : Institutional Support

2. Module-5 …Contd: Institutional Support • What is Institutional Support ? • Different Schemes • TECKSOK,KIADB,KSSIDC • KSIMC • DIC Single window Agency • SISI;NSIC;SIDBI;KSFC

3. What is Institutional Support ? • The term institutional support refers to the part of economic environment of industry and business. • It consisting of authorities and institutions whose decisions and active support in form of laws, regulation, financial and non-financial help brings a lot of changes in the functioning of any business. • The institutions could be government owned, statutory, semi autonomous or autonomous. It is the government or government supported institutions authorized to take up certain activities - financing, marketing, project preparation, training the to promote industrial activities in the state. • There are three stages of promotion - inception stage, operational stage and expansion or diversification stage.

4. TECSOK[Technical Consultancy services of Karnataka] • Established in 1976 by Government of Karnataka • It supports technical, industrial and management consultancy

5. Objectives • To provide reliable consultancy support for entrepreneurs to startup self employment ventures in Karnataka • Provide consultancy services to the various departments and agencies of state and central Governments.

6. Location Specific identification of investment opportunities. • Assistance in obtaining statutory and procedural clearances. • Feasibility studies and environment impact studies. • Preparation of detailed project reports as per investment norms and financial norms..

7. Market survey and research. • Project implementation and turn key assistance. • Reorganization and restructuring of enterprises. • Valuation of assets, man power planning & budgetary control system.

8. Energy management & audit, corporate plan, technology transfer. • Diagnostic studies and rehabilitation of sick industries. • Designing and organizing training programmers • Since its inception, TECSOK  has catalyzed a large number of industries throughout the province. • Management studies, company formation, corporate plan, enterprise restructuring. • Port tariff study and related areas. • Consultancy for agro-base industries as a Nodal Agency of Government of India. • Consultancy for merger/takeovers. • Infrastructure development project reports.

9. KIADB : (Karnataka Industrial Area Development Board ) • Promote rapid and orderly development of industries in the state. • Assist in implementation of policies of Government within the purview of KIAD Act. • Facilitate in establishing infrastructure projects. • Function on “No Profit – No Loss” basis.

10. Functions of KIADB • Acquire land and form industrial areas in the state. • Provide basic infrastructure in the industrial areas. • Acquire land for Single Unit Complexes. • Acquire land for Government agencies for their schemes and infrastructure projects.

11. What has been done by KIADB ? • Till date, KIADB has formed 132 industrial areas spread all over the State, and acquired land for nearly 400 Single Unit Complexes ensuring balanced industrial development in all regions with well thought of infrastructures and unique features. • KIADB has formed industrial areas in all the districts of the State. So far it has formed 132 small and big industrial areas spread over the State covering about 40,000 acres.

12. In Bangalore industrial areas like Peenya, Dobaspet, Bidadi, Harohallli, Jigani, Bommasandra, Electronic City, EPIP-Whitefield, • Hebbal industrial area  spread over 3000 acres • Mangalore Baikampady industrial area spread over 2700 acres, • Belur industrial area in Dharwad on an extent of  2185  acres, • Kanabargi & Honaga in Belgaum and Raichur Growth Centre etc  are the major industrial areas developed by KIADB. • KIADB has also provided land to about 400 stand alone major industries (Single Unit Complexes).

13. KIADB Clients • Infosys Electronic City, Bangalore & Mysore • Toyota  : Bidadi, Bangalore • Volvo- Hoskote, Bangalore • WIPRO- Peenya, Bangalore • Coca-Cola- Bidadi, Bangalore

14. KSIMCKarnataka Small Industries Marketing Corporation • Established in the year 2001 • Objectives: • Extend Marketing support and assistance • To procure government needs from SSI throughly purchase and price performance

15. Functions of KSIMC • Improve quality of products • To improve production • Reduce prices • Augment exports

16. KSSIDC [Karnataka State Small Scale Industries Development Corporation] • Establishes in 1960 by Govt. of Karnataka • It supports Infrastructure and industrial inputs • Helps to procure raw materials to SSI • Improve SSI segment; rapid development

17. Functions of KSSIDC • Establish and manage industrial estates • Procure rare raw material • Helping in marketing the products • Organizing exhibitions about SSI products • Provide machinery information to SSI • Provide guidance to SSI entrepreneurs • Provide technical library facilities to help entrepreneurs in their work • To provide laboratory facilities in coordination with Indian standard Institution

18. SIDBI[ Small Scale Industries Development of India] • Service: Financial Assistance • Small Industries Development Bank of India (SIDBI), set up on April 2, 1990 under an Act of Indian Parliament, is the Principal Financial Institution for the Promotion, • Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for Co-ordination of the functions of the institutions engaged in similar activities.

19. SIDBI • The business domain of SIDBI consists of small scale industrial units, which contribute significantly to the national economy in terms of production, employment and exports. • SIDBI's assistance flows to the transport, health care and tourism sectors and also to the professional and self-employed persons setting up small-sized professional ventures.

20. Objectives of SIDBI • Financing • Promotion • Development • Co-ordination 

21. SIDBI Functions • Financing new projects • Providing finance for expansion • To improve the present status of the SSI modernization of the units

22. Promote rural industrialization • Helping in marketing the product • To provide right guidance to budding and exisiting entrepreneurs

23. KSFC (Karnataka State Fincance Corporation) • Karnataka State Financial Corporation is a state level financial institution established by the State Government in the year of 1956 under the State Financial Corporation Act 1951 to meet mainly the long term financial needs of Small and Medium Entrepreneurs (SME’s) in the state of Karnataka.

24. Vision of KSFC To reach and covers the entire state of Karnataka. To suit the knowledge of each region in terms of infrastructure and natural resources industrialization and entrepreneurship. Specialization in the appraisal, monitoring a recovery of loans of SSI/MSI of other new fund and the based activities, A continuous journey towards the development of SSI and entrepreneurs. Mission of KSFC: To be a premier, self sustained financial institution for catalyzing creating and sustaining viable investment in the small scale and medium scale of Industry and services and the financial sectors in the state of Karnataka State.

25. Quality Policy: • To ensure satisfaction through team work and professional management. • To extend effective guidance through entrepreneurs for successful accomplishment of their business venture. • To provide good quality of service on a continued basis to the satisfaction of the customer. • To attain satisfied level of performance every year and to ensure compliance with statutory and regularly requirements. • To encourage everyone in the organization to upgrade and enhance their skill & knowledge with.

26. Objectives of KSFC: The corporation has been established with the basic objective of promoting industrial development in Karnataka. KSFC was desired to give particular emphasis to small & medium scale industries keeping in line with the SIDBI and either specialized institutions or the Government. It was felt that no industrial project which is due important should not perish due to lack of timely and adequate finance.

27. National Small Industries Corporation (NSIC) • It was established in 1955 to promote and develop micro and small scale industries and enterprises in the country. It was founded as a Government of India agency later made into a fully owned government cor • National Small Industries Corporation Ltd. (NSIC), is an ISO 9001-2015 certified Government of India Enterprise under Ministry of Micro, Small and Medium Enterprises (MSME).poration.

28. Objectives • To provide machinery on hire purchase basis and assisting and marketing in exports. • Providing training facilities centers and for providing assistance in modernizing the small industries. • It also helps in organizing supply of raw materials like coal, iron, steel and other materials and even machines needed by small scale private industries. • It also provides assistance right from financing, training, providing raw materials for manufacturing and marketing of finished products of small scale industries • It also helps SSI by mediating with government owned banks to provide cheap finance and loans to budding small private industries of India. • It is also providing assistance by setting up incubation centers in other continents and also international technology fairs to provide aspiring entrepreneurs and emerging small enterprises a platform to develop skills, identify appropriate technology, provide hands-on experience on the working projects, manage funds through banks, and practical knowledge on how to set up an enterprise.

29. District Industrial Centre (DIC) Industrial district concept was initially used by Alfred Marshall to describe some aspects of the industrial organization of nations. Industrial district (ID) is a place where workers and firms, specialized in a main industry and auxiliary industries, live and work. At the end of the 1990s the industrial districts in developed or developing countries had gained a recognized attention in international debates on industrialization and policies of regional development.

30. Objectives of District Industries Centre (DIC): i. Accelerate the overall efforts for industrialization of the district. ii. Rural industrialization and development of rural industries and handicrafts. iii. Attainment of economic equality in various regions of the district. iv. Providing the benefit of the government schemes to the new entrepreneurs. v. Centralization of procedures required to start a new industrial unit and minimization- of the efforts and time required to obtain various permissions, licenses, registrations, subsidies etc.

31. Functions of District Industries Centre (DIC): i. Acts as the focal point of the industrialization of the district. ii. Prepares the industrial profile of the district with respect to : iii. Statistics and information about existing industrial units in the district in the large, Medium, small as well as co-operative sectors. iv. Opportunity guidance to entrepreneurs. v. Compilation of information about local sources of raw materials and their availability. vi. Manpower assessment with respect to skilled, semi-skilled workers. vii. Assessment of availability of infrastructure facilities like quality testing, research and development, transport, prototype development, warehouse etc. viii. Organizes entrepreneurship development training programs. ix. Provides information about various government schemes, subsidies, grants and assistance available from the other corporations set up for promotion of industries. x. Gives SSI registration. xi. Prepares techno-economic feasibility report. xii. Advices the entrepreneurs on investments.