1. "Role of Specialized Institutions in
Development of SSI "
 Presented By :
Mohd Alam
&
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Md Abu Shaham

2. WHAT IS SSI?
Initially SSI were classified into two categories- those using
power with less than 50 employees and those not using power
with the employee strength being more than 50 but less than 100.
An industrial unit can be categorized as a small- scale unit if it
fulfils the capital investment limit fixed by the Government of India
for the small-scale sector.
Investment –
Upto 5 crores (production)
upto 2 crores (services)
Employee – Less than 200
Products – Mostly
unbranded
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3. SSI in INDIA
 Contributes almost 40% of the gross industrial
value added in the Indian economy.
 Employment generation next only to
agriculture.
 Contribution to exports
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4. Importance of SSI
 Employment
 Rural development
 Reduces inequality of
income
 Operational flexibility
 Assists large scale industries
 Foreign exchange
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5. Types of SSI
SSI
Traditional Modern
Khadi Ancillaries
Handlooms
Tiny/Small /Medium
Enterprises
Cottage
Sericulture Small-Scale Service
and Business Enterprises
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6. Government initiatives
 Exemption for excise duty limit raised from Rs. 50
lakhs to Rs. 1 crore
 The composite loans limit raised from Rs. 10
lakhs to Rs.25 lakhs
 The Nayak Committee's recommendations
regarding working capital
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7. Types of Specialized
Institution:
1)All India Institutions:
 Small Scale Industries Board
 Ministry of Small Scale Industries
• Small Industry Development Organisation (SIDO)
 National Small Industries Corporation (NSIC) Limited
 The Khadi and Village Industries Commission (KVIC)
 Coir Board
 Training Institutes
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8. 2 )State Level Institutions:
 State Industrial Development Corporations (SIDCs)
 State Directorate of Industries (SDIs)
 District Industries Centres (DICs)
3)Fund-Based Institutions :
 Small Industries Development Bank of India (SIDBI)
 Commercial Banks
 State Financial Corporations (SFCs)
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9. ALL INDIA INSTITUTIONS
 THE KHADI AND VILLAGE INDUSTRIES COMMISSION
(KVIC) :
 The Khadi and Village Industries Commission (KVIC) is a
statutory body created by an Act of Parliament in April 1957
 The KVIC is supposed to do the planning, promotion,
organization and implementation of programs for the
development of khadi and other village industries in the
rural areas.
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10. NATIONAL SMALL INDUSTRIES
CORPORATION (NSIC):
 NSIC , Ltd. was set up in 1955 with a view to promoting,
aiding and fostering the growth of small scale industries in
the country with focus on commercial aspects of these
functions .
 a) Composite Term Loan Scheme
 b) Equipment leasing
 c) Working Capital Finance
 d) Raw Material Assistance
 e) Marketing Support program
 10 Technology Up gradation
f)

11. COIR BOARD:
Coir Board is a statutory body established by the
Government of India under a legislation enacted
by the Parliament namely Coir Industry Act 1953
for the promotion and development of Coir
Industry in India as a whole.
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12. • They act as a catalyst for
promotion of investment and
industrial development in the
respective States.
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13. • They have been set up with the aim of promoting
industrial development in the respective States and
providing financial assistance to small
entrepreneurs.
• They are also involved in setting up of medium and
large industrial projects in the joint sector/assisted
sector in collaboration with private entrepreneurs
or wholly-owned subsidiaries.
E.g. Tamil Nadu Industrial Development Corporation
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Ltd. (TIDCO)

14. ROLE OF DIC:
 Technical support for preparation of Project
Report.
 Information on sources of machinery &
Equipment.
 Priority in Power supply/ Telephone connection.
 Promotion of new Industrial Estates/ Growth
Centers.
 Land/ Shed in Industrial Estate.
 Approval of Project Reports of special types.
 Promotion of Electronic Industries.
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15. FUND-BASED INSTITUTIONS:
Government of India recognized the need for a
focused credit policy for SSIs in the early days of
promotion of SSIs and RBI has been instrumental in
devising a multi-stage approach/financial system for
credit dispensation to different sectors of the
economy, for example, agriculture, industry, exports,
SSIs etc. This section focuses on the role of SIDBI,
SFCs and commercial banks in granting credit to
small scale and tiny sector
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16.  This plays a crucial role in the development of small
and medium enterprises in the concerned States.
 SFCs have been set up with the objective of
catalyzing higher investment, generating greater
employment and widening the ownership base of
industries.
 There are 18 SFCs in the country.
 Eg : Tamil Nadu Industrial Investment Corporation
Limited.
 Rajasthan Finance Corporation (RFC)
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17. • Set up by the Government of India in
April 1990, as a wholly owned
subsidiary of IDBI.
• It is the principal financial institution
for promotion, financing and
development of small scale industries
in the economy.
• It aims to empower the Micro, Small
and Medium Enterprises (MSME)
sector with a view to contributing to
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the process of economic growth,
employment generation and balanced

18. Thank You
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