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Finance & HRmobilization

UNIT - 4

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Introduction

Finance is the lifeblood of industry & it

is the pre- requisite for accelerating the

process of the industrial growth.

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Supporting agencies & Specializedservices forSSIs

Central Govt.

SSI Boards

SIDOEDI

NSIC

SIDBI

State Govt.

DICs

SFCsTCO

ITCOT

SSIDC

Others

CII, AIMA, DMAs in Various Districts etc

SSI

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Types of Industrial Finance

Normally entrepreneurs requires three types of

finance:

Short term Finance

Medium term

Finance

Long term Finance

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Short term: It usually refers to the funds

required for the period of less than one

year

Medium term: It referred the loan amountfor a period maximum of 3 years.

Long term: It referred the loan for themaximum of 5 years.

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Supporting Agencies

Finance

Regional Reconstruction

Banks

State Finance Corp

Small Industries

Investment Corp CorpNABARD

IDBI

NSIC

Technology

Up gradation

SIDO

SISI

Training Board for

Small Entre..

Marketing

SIDO

National Small industries

Corp

Small Entrepreneurs'

Council

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NSIC

It is an enterprise under the union ministry of

industries, was set up in 1955 to promote, aid

and foster the growth of small scale industries

in the country. NSIC provides a wide range ofservice forSSI.

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The functions

To provide machinery on hire-purchase

To provide equipments on leasing

To assist in export marketing To distribute basic raw material among SSI

To impart training in various industrial trade

To set up SSIs in other developing countries

To undertake construction of industrial

estates

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SIDO Small industries

development organisation SIDO is a policy making, coordinating and

monitoring agency for the development of

Small scale entrepreneurs.

The main functions:

1. coordination 2. industrial development

3. extension

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Functions relating to coordination

To evolve national policy for the developmentofSSIs

To coordinate the policies and programmes of

various state govt.

To maintain proper liaison with ministries,

planning commission, state Govts. Financial

institutions, etc.

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Functions relating to Industrial Development

To reserve items for production by SSIs

To collect data on consumer terms imported and

then, encourage the setting of industrial unit to

produce these items by giving coordinatedassistance.

To render required support for the development

of ancillary units To encourage SSIs to actively participate in Govt

arranged programmes, exhibitions etc

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Functions relating to extension

To make provision to technical service forimproving technical process, production process

in SSIs

To provide training services to strengthen SSIs

To render marketing assistance

To provide assistance in economic investigation

and information to SSIs

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SSIB ( Small scale industries Board )

The central govt constituted a board in

1954 to advise on development ofSSIs

in the country. It is to facilitate

coordination and inter- institutional

linkages with SSIs.

The industries Minister - central is the

chairman of SSIB. It has 50 members

including state Industry minister, MPssecretaries of various dept etc.

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State Small Industries DevelopmentCorporations - SSIDCs

It was set up under the companies Act 1956.

Functions:

To procure and distribute scare raw materials

To supply machinery on hire purchase mode

To provide assistance for marketing

To construct industrial estates / sheds. Providingallied infrastructure facilities and their maintenance

To extend seed capital assistance on behalf of the

state govt concerned.

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SIDCO Tamil Nadu Small IndustriesDevelopment Corp

It offers the following functions & facilities

Provision of constructed sheds in Industrial estates.

Assistance in procuring scarce raw materials like iron,

steel, potassium chlorate etc

Financial assistance in the form of subsidies to

industrial units in back ward areas

Assistance to rehabilitation of the sick units

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Managing the Human Resources / HRMobilization

There is a global shortage of trainedmanpower throughout all business

organisation. Getting quality manpower in

always a challenging one for business

promoter / Entrepreneurs.