11/10/2022 0 By indiafreenotes


The District Industry Center (DIC) under the Directorate of Industries and Commerce offers a subsidy loan scheme for young professionals under the guidance of the Ministry of Social Justice and Empowerment. Established in 1978, District Industries Centers’ program was initiated by the Central Government to promote tiny, cottage, village, and Small Scale Industries (SSIs) in smaller towns and their particular areas to make them available with all the basic needs, services, and facilities.

DIC’s primary focus is to generate employment in rural regions of India. District Industries Centers are managed and operated at the district level to provide all the necessary support services to entrepreneurs or first-time business owners to start their own Micro Small and Medium Enterprises (MSMEs). DICs also promote the Registration and Development of Industrial Cooperatives.

Role of District Industries Centres (DICs)

The District Industries Centres (DICs) play a prominent role in developing and promoting industries in the respective states. They are established by the Department of Commerce & Industry of the respective state. In addition to DICs, Sub-District Industries Centres (SDICs) have also been created in various states such as Nagaland. This additional tier has helped industrial development to penetrate deeper into the rural areas of the country.

  • Provide assistance for DIC programmes
  • Single window clearance system
  • Promote industries in rural areas
  • Provide employment to people in both rural and urban areas

Schemes under the District Industries Centres (DICs)

A number of schemes have been launched which fall under the ambit of District Industries Centres (DICs). These schemes help in fulfilling the goals of establishing the District Industries Centres (DICs). These schemes are centrally sponsored schemes as well as central sector schemes. The following schemes fall under the DIC:

  • Prime Minister’s Employment Guarantee Program (PMEGP): This centrally sponsored scheme under the Ministry of Micro, Small and Medium Enterprises (MSME) was launched in 2008. The PMEGP aims to generate employment opportunities for educated unemployed citizens in rural and urban areas. The nodal agency for the implementation of the scheme is Khadi & Village Industries Commission (KVIC). Under this scheme, 90-95% of the amount will be given by banks as loans with 5-10% of the project cost in the industry, service or business sector being the applicant’s share.
  • District Industries Centre (DIC) Loan Scheme: This scheme is for the self-employed as well as the small unit sector in towns and rural areas with population less than 1 lakh and with capital investment being less than Rs. 2 lakhs. These small units are identified by the Small Scale Industries Board and Village industries, handicrafts, handlooms, silk & coir industries.

For entrepreneurs in the general category, 20% of the total investment or Rs. 40,000 shall be the margin money (whichever is lesser). For entrepreneurs in the SC/ST category, 30% of the total investment or Rs. 60,000 shall be the margin money (whichever is lesser).

  • Seed Money Scheme: This scheme is targeted towards the self-employed who engage in skilled wage employment or self-employment ventures. Institutional financial assistance in the form of soft loans. Project cost to avail loan facility under the seed money scheme has been increased to Rs. 25 lakhs. For projects up to Rs. 10 lakhs, seed money assistance of up to 15% of the project cost is offered. For SC/ST/OBC, the assistance provided will be 20% of the project cost; the limit of assistance provided is Rs. 3.75 lakhs with 75% of the project cost being in the form of a bank loan.
  • District Awards Scheme: To boost entrepreneurs’ spirits and celebrate their achievements and successes, the state governments have started honoring such entrepreneurs with awards at the district level. The District Advisory Committee formed at the district level shall select the entrepreneurs to be awarded. The District Awards Function is held on Vishwakarma Jayanti Day which falls on varying dates every year. The award function includes the display of the products by the entrepreneur for sale and exhibition along with workshops and discussion about the same.
  • Entrepreneurship Development Training Programme: This scheme was launched to impart training to the educated unemployed people and encourage them to encourage self-employment ventures or engage in skilled wage employment. Training programmes under the Entrepreneurship Development Training Programme are:
  • Entrepreneurship Introductory Programme (Udyojakata Parichay Karyakram)
  • Entrepreneurship Development Training Programme (12 Day residential)
  • Technical Training Programme (12 Days to 2 Months non-residential)


Sida uses Challenge Funds to finance entrepreneurs and innovators that want to contribute to economic, environmental and social sustainability in the developing world.

Sida finances various Challenge Funds with different regional and thematic priorities so that development can reach as many people as possible. The funds should always address a key development issue which otherwise is not addressed by market forces. Challenge Funds can also be used to stimulate and support innovations in research and the civil society, for example by investing in local knowledge to improve governance, transparency, rights and access to services or to strengthen peoples’ voice and influence.

Because of low investment, many people living in poverty suffer a lack of productive work and goods that would help them improve their livelihoods. The private sector is a large source of innovation, employment and growth that has the potential to positively affect the situation for people in low- and middle-income countries. Due to the high level of uncertainty and risk associated with developing markets it is often hard for entrepreneurs to access credit or investments.

Challenge Funds are mostly aimed at entrepreneurs that lack the capital to start up their business or to scale a small project or business venture into a larger one. Sida wants to give social/sustainable businesses a chance to try their ideas and innovations. By taking some of the initial risk via investments through a Challenge Fund, Sida can enable social/sustainable businesses to become self-sustaining.


The small industries service institutes (SISI’s) are set-up one in each state to provide consultancy and training to small and prospective entrepreneurs. The activities of SISs are co-ordinate by the industrial management training division of the DC, SSI office (New Delhi). In all there are 28 SISI’s and 30 Branch SISI’s set up in state capitals and other places all over the country.

Functions of SISI

  1. To assist existing and prospective entrepreneurs through technical and managerial counseling such as help in selecting the appropriate machinery and equipment, adoption of recognized standards of testing, quality performance etc;
  2. Conducting EDPs all over the country;
  3. To advise the Central and State governments on policy matters relating to small industry development;
  4. To assist in testing of raw materials and products of SSIs, their inspection and quality control;
  5. To provide market information to the SISI’s;
  6. To recommend SSI’s for financial assistance from financial institutions;
  7. To enlist entrepreneurs for partition in Government stores purchase programme;
  8. Conduct economic and technical surveys and prepare techno-economic feasible reports for selected areas and industries.


The National Small Industries Corporation Ltd. (NSIC), an ISO 9000 certified company, since its establishment in 1955, has been working to fulfill its mission of promoting, aiding and fostering the growth of small-scale industries and industry related small-scale services/businesses in the country.

At present, the NSIC operates through 6 Zonal Offices, 26 Branch Offices, 15 Sub-offices, 5 Technical Services Centres, 3 Extension Centres and 2 Software Technology Parks supported by a team of over 5000 professionals spread across the country. To mange operations in Gulf and African countries, the NSIC operates from its offices in Dubai and Johannesburg.

Functions of NSIC:

NSIC provides a wide range of services, predominantly promotional in character, to small-scale industries.

  1. Provide machinery on hire-purchase scheme to small-scale industries.
  2. Provide equipment leasing facility.
  3. Help in export marketing of the products of small-scale industries.
  4. Participate in bulk purchase programme of the Government.
  5. Develop prototype of machines and equipments to pass on to small-scale industries for commercial production.
  6. Distribute basic raw material among small-scale industries through raw material depots.
  7. Help in development and up-gradation of technology and implementation of modernization programmes of small-scale industries.
  8. Impart training in various industrial trades.
  9. Set up small-scale industries in other developing countries on turn-key basis.
  10. Undertake the construction of industrial estates.


Small Industries Development Organization (SIDO) is a subordinate office of the Department of SSI & Auxiliary and Rural Industry (ARI). It is an apex body and nodal agency for formulating, coordinating and monitoring the policies and programmes for promotion and development of small-scale industries.

Development Commissioner is the head of the SIDO. He is assisted by various directors and advisers in evolving and implementing various programmes of training and management, consultancy, industrial investigation, possibilities for development of different types of small-scale industries, industrial estates, etc.

The main functions of the SIDO are classified into:

(i) Co-ordination,

(ii) Industrial development, and

(iii) Extension.

These functions are performed through a national network of institutions and associated agencies created for specific functions. At present, the SIDO functions through 27 offices, 31 Small Industries Service Institutes (SISI), 37 Extension Centres, 3 Product-cum -Process Development Centres, and 4 Production Centres.

All small-scale industries except those falling within the specialized boards and agencies like Khadi and Village Industries (KVI), Coir Boards, Central Silk Board, etc., fall under the purview of the SIDO.

The main functions performed by the SIDO in each of its three categories of functions are:

Functions Relating to Co-ordination:

  1. To evolve a national policy for the development of small-scale industries,
  2. To co-ordinate the policies and programmes of various State Governments,
  3. To maintain a proper liaison with the related Central Ministries, Planning Commission, State Governments, Financial Institutions etc., and
  4. To co-ordinate the programmes for the development of industrial estates.

Functions Relating to Industrial Development:

  1. To reserve items for production by small-scale industries,
  2. To collect data on consumer items imported and then, encourage the setting of industrial units to produce these items by giving coordinated assistance,
  3. To render required support for the development of ancillary units, and
  4. To encourage small-scale industries to actively participate in Government Stores Purchase Program by giving them necessary guidance, market advice, and assistance.

Function Relating to Extension:

  1. To make provision to technical services for improving technical process, production planning, selecting appropriate machinery, and preparing factory lay-out and design,
  2. To provide consultancy and training services to strengthen the competitive ability of small-scale industries.
  3. To render marketing assistance to small-scale industries to effectively sell their products, and
  4. To provide assistance in economic investigation and information to small- scale industries.