1. Small Scale Industry
(Rural Banking & Microfinance)
By: Somya Agrawal

2. Small Scale Industry
• A small scale industry (SSI) is an industrial
undertaking in which the investment in fixed assets
in plant & machinery, whether held on ownership
term or on lease or hire purchase, does not exceed
Rs. 1Crore.
• However, this investment limit is varied by the
Government from time to time.

3. Registration
• Not compulsorily required.
• If registered with State Directorate or Commissioner
of Industries or DIC's makes the unit eligible for
availing different types of Government assistance.
Financial
Assistance
Medium And
Long Term Loans
Machinery On
Hire-purchase
Special Schemes
For Promotion Of
SSI

4. Organizations Promoting SSIs
The Ministry of Micro, Small and Medium Enterprises
Small Industry Development Organization (SIDO)
National Small Industries Corporation Ltd (NSIC)
Small Industries Development Bank of India (SIDBI)
The National Commission for Enterprises in the Unorganized Sector (NCEUS)
National Institute of Small Industry Extension Training (NISIET) at Hyderabad
National Institute of Entrepreneurship and Small Business Development
(NIESBUD) at NOIDA
Indian Institute of Entrepreneurship (IIE) at Guwahati

5. Role of SSI
Employment
generation
Mobilization of
resources and
entrepreneurial skill
Equitable
distribution of
income
Balanced regional
development
Indigenization Promotes exports
Supports the
growth of large
industries
Better industrial
relations
40% of Exports
80% of industrial
employment

6. Problems & Challenges Faced by SSIs
Problem of
skilled
manpower
Inadequate
credit
assistance
Irregular
supply of raw
material
Absence of
organized
marketing
Lack of
machinery and
equipment
Absence of
adequate
infrastructure
Competition
Other
problems

7. Role of SFC
• Providing long term finance to industrial enterprises
having sole proprietary, partnership, company and co-
operative society form of business organization.
• Provide working capital loans and meeting various
short-term needs of their clients.
• Subscribing equity and debentures of industrial
enterprises.
• Providing financial assistance to small and medium
enterprises engaged in service sector.

8. Project advisory and Finance
 Project conceptualization and related services, including guidance
in relation to selection of projects, preparation of feasibility
studies, capital structuring, techno – economic feasibility, financial
engineering, project management design etc.
 Credit Syndication including assistance in legal documentation etc.
 Documentation of various project documents
 Placement of debt – equity including design of the structure of
instruments, placement of instruments with financial institutions,
bank etc

9. Assist in organizational structural changes
• Analysis of operational performance
• Study of existing organizational structure
• Study of the existing position and rules and regulations
• Market analysis with respect to products
• Review of domestic and international scenario
• Valuation of fixed assets and inventory
• Advising on formation of new entity
• Preparation of relevant agreements / legal documents.
• Legal Advisory Services

10. Questions???

11. Thank You !!!