Role of DISTRICT INDUSTRY CENTRES in development of young enterpreneurs.
Helpful in Enterpreneurship development syllabus of Undergraduate courses.
Development of young enterprises
2. TOPIC : ROLE OF DISTRICT INDUSTRY CENTRES IN THE
DEVELOPMENT OF YOUNG ENTREPRENEURS
3. DISTRICT INDUSTRY CENTRE
• Overview : In pursuance of the IndustrialPolicy-1977, a programme for setting up District Industries
Centres (DICs) was launchedby the Government of India, to be operational from1st May 1978. The
programme providedfor setting up a DIC in each district of the country, in a phased manned in order to
make the district headquartersa focal pointfor the developmentof small-scale and cottage industries,
to shift the emphasis from cities and state capitalsto the district headquartersand to provide under a
single root, all services and support needed by small and village entrepreneurs. Accordingly the
Government oflndia issued guidelinesto the State Government for setting up DIC in each district of the
state.
4. • The main objects of the DIC programme are firstly to make availablevariousassistance and clearance
required under one roof and secondly to promote rural industries.
• Followingare the schemes under District Industries Centre (DIC):
• Prime Minister’sEmploymentGenerationProgram (PMEGP)
• Seed Money Scheme
• DIC Loan Scheme
• EntrepreneurshipDevelopmentTrainingProgram
• District Award Schemes
5. THE AIM OF DISTRICT INDUSTRIES CENTRE
• In each district one agency to deal with all requirements of small and
villageIndustries. This is called “District Industries Centre”, The District
Industries Centres have undertakenvariousprogrammes for investment
promotionat the grass root level such as organizingseminars workshops,
extending support for trade fairsand exhibitionsorganized by various
Industry’sassociations. All the services and support required for MSME units
under was the single roof of the District Industries Centre.
• The Centre has aseparatewing to look after the special needs of cottage and house-hold
industries as district from small industries.
6. DICS PERFORM VARIOUS FUNCTIONS:
• 1. Identification of Entrepreneurs: DIC’sdevelop new entrepreneurs by
conducting entrepreneurial motivation programmes throughoutthedistrict
particularly under SEEUY scheme. DICs also take association of SIS’s and
TCOs for conducting EDPs.
2. ProvisionalRegistration: Entrepreneurs can get provisionalregistration
with DICs which enable them to take all necessary steps to bring the unit into
existence. The entrepreneur can get assistancefromtermlending institutions
only after getting provisionalregistration. Theprovisionalregistration is
awarded for two years initially and can be renewed every year but only for two
times.
7. • 3. Permanent Registration:When the entrepreneur completes all formalities
required to commence the productionlike selection of site, power connection,
installingmachinery etc theycan applyto DIC for permanent registration.It is
onlyafter gettingthe permanent registration thatthe entrepreneur can applyfor
supplyof rawmaterials on concessional rates.Permanentregistrationis
essential to avail all types of benefits extended bythe government from time to
time.
•
4. Purchases of Fixed Assets:The DIC’s recommend loan applicationsofthe
prospective entrepreneur to various concerned financialand developmentalinstitutions e.g. NSIC, SISI etc. for the purchase
of fixed assets.It also
recommend to the commercial banks for meeting the working capital
requirement ofSSI to run day-to -day operations.
8. 5. Clearances from Various Departments: DIC takes the initiativeto get
clearances from various departmentswhich is essential to start a unit. It even
takes follow up measures to get speedy power connection.
6. Assistance to Village Artisans and Handicrafts:In spite of inherenttalent
and ability, villageartisans are not better off because they lack financial
strength to strive in the competitivemarket. DIC in support with different lead
banks and nationalizedbanks extends financialsupport to those artisans.
9. • 7. Incentives and Subsidies:DIC helps SMEs and rural artisans to subsidies
granted bygovernment under various schemes.This boost up the moral as well
as the financial capacityof the units to take further developmental activities.
The different types ofsubsidies are power subsidy,interest subsidyfor k
engineers and subsidyunder IRDP etc. from various institutions.
8. Interest Free Sales Tax Loan:SIDCO provides interestfree sales tax loan
up to a maximum limit of 8per cent of the total fixed assets for SSI units set up
in rural areas.But the sanction order forthe same is to be issued byDIC. The
DIC recommends the case of SME to NationalSmall IndustriesCorporation
Limited for registrationforGovernment purchase programme.
10. • 9. Assistance ofImport and Export:Government is providingvarious types
of incentives forimport and export of specific goods and services. These
benefits can be availed byanyimporter or exporter providedthe same is routed
through the concerned DIC. Export and import license is also issued to the
importer or exporter onlyon the basis of recommendationofDIC.
10. Fairs and Exhibitions:The DIC inspires and facilitates the SSI units to
participate in various fairs and exhibitions which are organized bytheGovernment ofIndia and other organizations to give
publicityto industrial
products.DICs provide free space to SMEs for the displayoftheir products and
provide financial assistance for the purpose.
11. • 11. TrainingProgrammes: DIC organizes trainingprograms to rural
entrepreneurs and also assists other institutions or organizationimparting
training to train the small entrepreneurs.
12. Self-employment for Unemployed EducatedYouth: The DICs have
launched a scheme to assist the educatedunemployed youth by providing them
facilities for self-employment. The youth should be in the age group of 18 to 35
years with minimum qualification of Metric or Middle with I.T.I. in
engineering or Technical Trade.Technocratsand women are given preference.
12. ROLE OF DIC FOR THE PROMOTION OF SMALL SCALE AND
COTTAGE INDUSTRIES
• DIC provides the information on sources of machinery and equipment.
Promotes new industrial growth centers, electronic industries etc.,
Conducts multiple training programsto encouragethe entrepreneurs.
Gives assistance to entrepreneursunder StateIncentives scheme and funding assistancethrough self-
employment schemes.
It allots raw materials to the concerned industries at districtlevel.
DIC gives the information about marketing and its assistanceon participatingtrade fairs/buyers-sellers
meet and so on.
Guidance regardingImport and Exports of specific goods and services.
13. Improves the managerialcapacity by organizing variousseminars, workshops etc.
It clears the problems relatedto SSI Registration/Bankloan/Marketingof productionetc.
Single window assistance through SIDA and District Industries Centers.
Products standardization
Promotion of products under Non-conventionalEnergy Sources.
Design and product development for handicrafts.
14. CONCLUSION
• In India, District IndustrialCenter performs an importantrole in Entrepreneur development.DICs
Provide complete
assistance and support to entrepreneurs to start and developthe industries. This government program
is yieldingbetterresults when compared with the past programmes in terms of generating self-
employment. This process will
cause to reduce the regional imbalanceamong developedand developingareas of the country. The
DICs should take
much more efforts to give advices and also help the entrepreneurs to start, run and developthe
industries effectively
15. •
District Industries Centers (DICs) providefull assistance to the entrepreneurs who are going to start the
business on their own and in their regionalplaces. These centers provide service and support to
small entrepreneurs under a single roof at both pre and post investments.