Contents

1. Introduction

Advantages of Self-Employment
Entrepreneurial Opportunities
Manufacturing Industries
What is Industry
Definitions of SSI
Items of Plant & Machinery

2. Steps In Setting Up An SSI

Know Yourself
Training
Project Identification Selection
Location of The Enterprise
Premises Owned Vs Hired, Typical Question
Preparation of A Project Report
Arranging Technical Know How
Constitution of The Firm
Registration, Arranging Finance
Other Sources
Statutory Licences/Approvals/Clearances
Arranging Land & Building
Procuring Plant & Machinery
Utilitites : Power Connection/Water Supply
Recruitment of Personnel
Procurement of Raw Materials
Registration with Exicse/Sales Tax Authorities
Trial Production
Commercial Production, Marketing
Accounts And Record-Keeping
Market Research, Quality Control
Updating Yourself, Growth
Avoiding Typical Pitfalls

3. Registration/Licences For SSI

Provisional Registration
Permanent Registration
Benefits of Registration

Expansion/Diversification
Special Approvals
Pollution Control Board

4. Resourcing

Non-Financial, National Level
State Level
Financial, Reserve Bank Of India
All India term Lending Institutions
Other Financial Institutions
Whom to Contact for What

5. Techical Know-How Foreign Collaborations

6. Marketing

Size of Market, Competition
Products Diffrentiation, Distribution Channels
Costing & Pricing, Sales Strategy
Advertising/Publicity, After Sales Service
Govt. Purchases

7. Lessons From Experience

Profit Generation, Payment of Loans
Financial Planning
Legal Violations, Copy Cats
Insurance, Ancillarisation
Industrial Sickness, Avoiding Sickness
Incentive and Subsidies

8. Policies and Programmes for
Rural Development

Concept of Rural Development
Goals of Rural Development
Rural Development Policy
Development and Incidence of Poverty
Evaluation
Need for Human Resources Stratergy

9. Prime Minister's Rozgar Yojana
A Study

Objectives of The Scheme
Importance of The Study
Methodology
Analysis and Interpretation
Other Findings and Suggestions
Conclusion

10. Rural Women Entrepreneurship
in India : Bright Prospects

Rural Development Programmes
Indira Mahila Yojana (IMY),
Rashtriya Mahila Kosh (RMK), STEP
NORAD Programme, ARVIND
DWCRA, TRYSEM, Coclusion

11. Industrial Innovations By Small and
Medium Sized Enterprises

Introduction
Industrial Innovations
Technological Competence, Competence for
Development of The Firm, Systematic Learning
Innovations in Small and Medium Sized Firms
Role of Innovative Small and Medium Sized Firms

12. Indian Small Industry

A Profile of Indian Small Industry,
Small Industry in The Post-Librelization Era
Ancillarization and Subcontracting
Indicators of Technological Strengths
Within Small Industry
New Challenges for SMEs
Small Industry and CII
Conclusion

13. Organazations Supporting Entrepreneurship Development in India

Government Organizations
Non-Governmant/Non-Profit Organazations
Financial Institutions, International Agencies
Addresses of NABARD Offices in the Country
Addresses of Rural Development and
Self-Employment Training Institutes in The Country

14. Directory Section

Small Industries Service Institutes,
Branch Institutes, Extension Centres
Andhra Pradesh
Assam. Bihar
Goa, Dadra & Nagar Haveli, Gujarat
Haryana, Himachal Pradesh, Jammu & Kashmir
Karnataka, Kerala
Madhya Pradesh
Maharashtra
Manipur, Meghalya, Nagaland, Orissa
Punjab, Rajasthan, Sikkim
Tamilnadu, Tripura, Uttar Pradesh
West Bengal
Arunachal Pradesh, Andaman &
Nicobar Islands, Delhi
Mizoram, Pondicherry

RESOURCING

For successful establishment and running of a business enterprise, particularly a manufacturing concern,a lot many factors have to be considered and inputs resourced. Fortunately, the Government has built up a wide and comprehensive network of institutions at Central. State and district level throughout the country. For practically every step that you have to take for establishing your enterprise, there is a support agency available. Details of such institutions are briefly described under two categories :

1.      Non-Financial

2.      Financial

(A) NON-FINANCIAL

1. NATIONAL LEVEL

1.      Small Industries Development Orgaisation (SIDO):

o        Policy formulating, coordinating and monitoring agency

o        Maintaing close liaison with the Central ministries, Planning Commission. State Governments and other Organisations concerned with Small Industry Development and serves as the secretariat for the All-India Small Scale Industries Board.

o        Provides a comprehensive range of industrial extension services including technical, managerial, economic and marketing assistance through its network of 26 small industries service institutes, 32 branches of SISIs, 41 extension centres, four regional testing centers, one product and process development centre, two footwear training centres and four production centers. In addition, 20 field testing stations are being established in areas of cencentration of specific industries for providing testing facilities to small industries.

2.      National Small Industries Corporation (NSIC) with four regional Offices) :

o        Supply of machinery on hire purchase basis

o        Registration of units for participation in the purchase programmes of the Central and State Governments and other central institutions

o        Marketingf assistance- internal and export

o        Development of prototype of machinery and equipment, and other facilities.

o        Basic and advanced training in selected trades and technologies through its four prototype development and tarining centres.

3.      Commissioner for Industrial Cooperatives Coordination of Policies for Industrial Cooperatives.

4.      Specialised Institutions :

1.      National Institute of Small Industry Extension Training (NISIET), Hyderabad Interdisciplinary approach in the areas of taining, research and consultancy relating to development and management of small and village industries (earlier known as Small Industry Extension Training Institute - SIET)

2.      National Institute for Entrepreneurship and Small Business Development (NIESBUD), New Delhi

§         Coordinates research and training in entrepreneurship development and devises specific training programmes suited to various categories of entrepreneurs/trainers/promoters.

3.      Entrepreneurship Development Institute of India (EDII), Ahmedabad-promoted by IDBI, IFCI, ICICI and SBI Industries requiring air pollution control should obtain consent of the SPCB before commencing production.Typically the following indusrties would require such consent (the list is indicative not exhautive):

1.      Asbestos

2.      Cement

3.      Ceramic

4.      Chemical

5.      Coal/Lignite

6.      Engineering

7.      Ferros/metallurgical

8.      Fertiliser

9.      Foundries

10.  Food & Agricultural Products

11.  Mining

12.  Non-ferrous metallurgical

13.  Ores/mineral (Benefication, pelletisation etc.)

14.  Power, generating/boiling plants

15.  Paper and Pulp

16.  Textile

17.  Petroleum refinery

18.  Petro-chemical

19.  Plant for recovery from and disposal of wastes

20.  Incinerators

4.      Central Institute of Tool Design (CITD), Hyderabad-

§         Training inthe design and manufacture of tools, jigs, fixtures, dies and moulds

§         Advisory and consultancy services including assistance in the design and development of tools

§         Recommend measures to standardise tools, tooling elements components etc.

5.      Central Tool Room and Training Centres (at Ludhians, Delhi Calucutta and Bangalore)

§         Provision of tool room services and facilities in designs, manufacture and taining, Tool rooms at Delhi and Bangalore and owned by the respective State Government

6.      Central Institute of Hand Tools (CIHT), Jalandhar

§         Provision of imporved technology, raw materials, designs and testing for hand tools industry

7.      Institute for Design of Electrical Measuring Instruments (IDEMI), Bombay

§         Provision of technical consultancy in the design and development of electrical and electronic instruments, calibration and testing, tool design, tool fabrication, prototype fabrication and training.

8.      Central Machine Tool Institute Bangalore

9.      Central Institute for Plastics Engineering and Tools, Madras (Ministry of Petroleum and Chemicals)

10.  National Institute of Foundry and Forge Technology Ranchi.

II. STATE LEVEL

1.      (a) Directorate of Industries With a network of District Industries Centres at the district level, industries officers at the sub-divison level and extension officers at the block level :

o        regsitration of small scale units and recommending cases of large/medium industries to appropriate authorities.

o        raw material quota

o        import quota

o        financial assistance under the State Aid to Industries Act

o        industrial estates

o        technical consultancy

o        training of entrepreneurs

o        industrial cooperatives

o        compilation of statistics

o        overall administration of the village and small industry sector and maintaining close liaison with the central and state level organisations concerned with industrial development

2.      Small Industry Development Corporation

o        supply of scarce raw materials through raw material depot

o        machinery on hire purchase

o        marketing assistance

o        joint ventures in the small scale sector

o        entrepreneurship development

o        trade centres

o        industrial estates

3.      Industrail Infrastructure Corporation; Industrial Area Development Board/Authority:

o        plans and develops industrial estates and industrial areas

4.      Industrial Development Corporation :

o        Promotion of industrial units in the medium and large scale sector including joint and public sector ventures

o        Planning and development of industrial estates and industrial areas (in some states)

5.      Industrial Investment Corporation :

o        finances medium and large units up to a certain investment ceiling with direct participation in share capital and underwrites new issues

6.      Agro Industries Corporation :

o        supply of agricultural machinery/equipment on hire

o        development of agro-based industries

o        sale of agro-inputs like fetilisers and pesticides

7.      Electronics Development Corporation :

o        Promotion of industries in the field of electronics including joint sector and public sector projects

o        Leather Industry Development Corporation and other similar commodity corporations :

o        development of specific types of village and tiny sector units relating to a particular trade

8.      Rural Industries Marketing Corporation :

o        marketing of village industry products and provision of a variety of services needed by village and tiny units (Gujarat state has set up this corporation)

9.      Industrial and Technical Consultancy Organisation (sponsored by IDBI/IFCI/CICI):

o        technical consultancy services to small and medium scale projects

(B) FINANCIAL

(A) RESERVE BANK OF INDIA (RBI)

The country's central bank, responsible for currency and monetary regulation and other central banking functions besides being banker to the government. Also responsible for supervision of all banking institution provision of rural credit and exchange central.

Entrustd with the administration of the Credit Guarantee Scheme, under which government guarantee is provided for advances granted by banks and other credit in situations to small industrial units.

(B) ALL-INDIA TERM LENDING INSTITUTIONS

1.      Industrial Development Bank of India (IDBI) coordinates in conformity with national priorities the activities of institution engaged in financing, promoting, developing industry operates with schemes such as:

o        direct assistance

o        soft loan scheme

o        technical development fund

o        refinance of industrial loans

o        automatic refinance

o        special refinancing facility

o        reduscounting of bills

o        seed capital assitance

o        subscriptions to shares and bonds of financial institutions

o        development assistance fund

2.      Industrial Finance Corporation of India (IFCI)

o        long term loans of new industrial units as also for expansion, diversification, renovation or modernisation of existing units both in rupees and foreign currencies, underwriting of equity, preference and debentures issues, subscribing to equity, preference and debenture capital

o        risk capital foundation provides soft loan as part of equity capital to new entrepreneurs, particularly technologists and professionals

o        benevolent reserve fund provides assistance for developmental purposes.

3.      Industrial Credit and Investment Corporation of India (ICICI):

o        currency loans to small enterprises under its Rupees assistance programme and foreign currency loan.

4.      Industrial Reconstruction Bank of India (IRBI) :

o        provides financial and other types of assistance to sick or closed industrial concerns, and operates, in the case of small units, through state level agencies by way of sanctioning "Line of Credit".

o        provide managerial assistance

o        guidance for renovation and modernisation

5.      Export Import Bank of India (EXIM Bank):

o        finances, facilitates and promotes foreign trade of India

o        coordinates the working of institutions engaged in financing export and import

o        finances export of consultancy and related services, assists Indian Joint ventures in the third countries, conducts export market studies, finances export oriented industries and provides international merchant banking services

6.      National Bank for Agriculture and Rural Development (NABARD) :

o        refinancing the farm and non-farm operations in rural are as inthe non-farm sector, village and tiny sector industries located in rural areas are supported through refinancing

7.      National Cooperative Development Corporation (NCDC) :

o        promotes and finances cooperative enterprises in proccessing marketing storage and export relating to agro based industries

o        agro-service centres

o        promotion of uints for formulation of fertilisers, pesticdes and insecticides

o        workshop for fabrication of agricultural machinery/implements

o        margin money processing units

o        technical training

(C) OTHER FINANCIAL INSTITUTIONS

(i) Export Credit Guarantee Corporation (ECGC)

* supports and strengthens export promotion drive (a) by providing a range of risk insurance covers to exporters against loss in export of goods and services, (b) by offering guarantee to banks and financial institutions to enable exporters to obtain better facilities from them, (c) to give customer satisfying service at low cost and with high efficiency.

(ii) Deposit Insurance and Credit Guarantee Corporation (DICGC) :

* operates four guarantee schemes : (a) small loans gurantee scheme, (b) small loans (small scale industries) gurantee scheme, (c) small loans (financial corporations guarantee scheme, and (d) service cooperative society guarantee scheme

(iii) State Financial Corporation (SFC) :

• provides long and medium term loans for acquisition of fixed assets of small and medium industries
• guarantees payment for purchase of machinery of suppliers within India
• guarantees loans raised by industries from commercial banks, cooperative banks etc.
• foreign exhange loans under World Bank line of credit
• special capital assistance upto Rs. 200,000

(iv) Commercial Banks :

* provide term finance and working capital advances classified under cash credit, overdrafts, demand loans, purchased/discounted/advanced against inland bills, purchased/discounted/advanced against import bills and clean advance

(v) Regional Rural Banks (RRBs)

* provide banking facilities in remote and unbanked areas among other places of the selected districts and provide credit to agriculturists, artisans and other self employed persons belonging to weaker sections. The loans are given in kind.

(vi) Cooperative Bank :

* provide credit to farm and non-farm cooperative societies.

For specific details, care and precautions refer Chapter II. For example, for land acquisition aspects like residential, industrial, non-conforming, Lal Dora land open and covered area provision for expansion, etc. are discussed in Step 11 : Arranging Land & Building. It also describes care for materials required in construction, plant layout and other related factors.

For machinery Step 12 : Procuring Plant & Machinery. Details out role of NSIC/SSIDC, import procedures and other relevant factors. Significance of utilities, single/three phase power connections, transformer and wiring connections, voltage requirements are described in Step 13 : Utilities. For raw materials (import procedures, scare items, quotas, etc.) refer Step 14 : Raw Materials. While this Chapter gives you information on financial institutions and assistance offered Step 9 may be referred to for procedures on arranging finance.