SIDCO

Last updated on 16/05/2021 0 By indiafreenotes

‘Small Industries Development Corporations (‘SIDCO‘) are state-owned companies or agencies in the states of India which were established at various times under the policy of Government of India for the promotion of small scale industries.

Objectives of SIDCO

  • To provide infrastructure facilities like roads, drainage, electricity, water supply, etc. is one of the primary objectives of SIDCO.
  • The main objective of SIDCO is to stimulate the growth of industries in the small-scale sector.
  • To Promote industrial estates which will provide industrial sheds of different sizes with all basic infrastructure facilities.
  • To Promote skilled labor through the setting up of industrial training institutes.
  • To Provide technical assistance through training facilities to the entrepreneurs.

Functions of SIDCO

SIDCO promotes women entrepreneurs:

In addition to the above, in order to promote women entrepreneurs, a separate industrial estate for women has been set up at Tirumullaivoyal, near Chennai, where women entrepreneurs are trained in various fields of small scale industries.

SIDCO promotes skill development centres:

In an effort to supply skilled laborers to various small scale industries, skill development centres are being set up in various industrial estates which will be training workers in varied industrial activities and they will be trained in modern skill.

SIDCO set up Captive power plants:

In order to provide uninterrupted and good quality power supply, SIDCO has taken up a plan to set up captive power plants in major industrial estates. It is now planning to set up these plants in 10 industrial estates.

SIDCO provides Export marketing assistance:

To promote export marketing among the small scale industries, SIDCO has developed websites because of which it is able to display the products of the small scale industries in foreign markets and obtain export orders. Once an export order is obtained, the Common export manager of SIDCO will make arrangements for extending various services for export of the product.

SIDCO assists in Bills discounting:

When small scale units supply goods to government departments, there is a delay in receiving payments. In such a situation, the bills drawn on government departments will be discounted by SIDCO and upto 80% of the bill value is given to the supplier. This helps the SSI units in solving their working capital crisis.

SIDCO provides marketing assistance:

In order to provide an efficient marketing support to small scale industries, the corporation has taken up various schemes. In fact, the corporation participates in the tenders floated by the state government departments and also with the DGS & D (Director General of Supplies and Disposal). SIDCO makes advance payments for obtaining orders and distribute them among the various small scale units.