SIDC

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They are state-owned government corporations that engage in
the development and promotion of medium and large industries.
SIDCs aim to develop industrial infrastructure such as industrial
parks and industrial estates along with providing financial
assistance.

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About SIDC

The full form of SIDC or SIDCs is State Industrial Development Corporations. It was first
established in 1995 under the Companies Act, 1956. They are state-owned government
corporations that engage in the development and promotion of medium and large industries.

They are state-owned government companies that interact with the development and promotion
of medium and enormous industries. SIDCs aim to develop industrial infrastructure such as
industrial parks and industrial estates along with providing financial assistance. They set up
industrial projects either in joint sector collaboration with private entrepreneurs or on their own.
They also set up such projects as wholly-owned subsidiaries. They provide loans to several
industrial units in medium and large sectors at an interest rate that ranges from 13.5% to 17%
according to the size of the loan. 

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Objectives of SIDC 
• The main objectives of SIDC are as follows:-

 SIDC aims to promote micro, small and medium enterprises.

 It aids in the establishment of entrepreneurship and skill development.

 It helps in facilitating industrial infrastructure development.

 It aims at providing publicity and marketing support to industries.

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 Functions of SIDC

 SIDCs act as an instrument in expediting industrialization in the states of India in which they are present.

 SIDCs issue loans, subscriptions of shares, guarantees to various companies belonging to different industries.

 SIDCs organise various promotional programs like entrepreneurial training, project identification, etc.

 It provides financial assistance in the form of loans or subscriptions to debentures and shares, guarantees, etc. 

 SIDCs procure scarce raw materials from the domestic market and international market and make them available to needy
small scale industries as per their requirements. 

 SIDCs take up various schemes to provide the various industrial units with efficient marketing assistance. SIDCs
participate in tenders floated by the state government departments.

• SIDCs help in setting up skill development centres where workers are trained in various skills and industrial activities. This
is to ensure the supply of skilled labourers to various small scale industries.   

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 To obtain orders and distribute them among various small scale units, SIDCs make
advance payments.

 It helps in solving the working capital problems of the various industrial units.

 The government departments often delay payments when goods are supplied to
them by the industrial units. Therefore, to avoid such delays, SIDCs discounts the
bills drawn on government departments. Hence, they ensure that 80% of the bill
value is paid to the supplier units.

 SIDCs have developed websites so that the products manufactured by the

industrial units are displayed in foreign markets. It provides export marketing
assistance and helps in procuring export orders.

 It helps small scale units to take part in the international trade fair so that the
products are displayed there.

 SIDCs also promote industrial units run by women entrepreneurs.

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The State Industrial Development Corporations (SIDCs) are government enterprises
controlled by the state that work to develop and promote medium and big businesses.

The state industrial corporations engage in the development of financial support as

well as create industrial infrastructures such as industrial parks and estates. They
establish industrial ventures either in partnership with private enterprises or on their
own, along with setting up subsidiaries.

They offer loans to a variety of industrial units in the medium and big sectors, with
interest rates ranging from 13.5 percent to 17 percent, depending on the loan amount.

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A few of the SIDCs are:  
• Below mentioned are a few of the State Industrial Development Corporations:

 Jammu and Kashmir State Industrial Development Corporation

 Delhi State Industrial and Infrastructure Development Corporation

 Haryana State Industrial and Infrastructure Development Corporation

 Tamil Nadu State Industrial Development Corporation

 Kerala State Industrial Development Corporation

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SIDCs Aims
• The key aims of state industrial development corporations are as follows:

• The state industrial corporations engage in the development of micro, small, and medium-sized businesses.

• It assists in the formation of entrepreneurship and the development of skills.

• It aids in the development of industrial infrastructure.

• Its goal is to help businesses with publicity and marketing.

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 SIDCs Responsibilities include:

• The state industrial corporations engage in the development and provide loans, stock subscriptions, and guarantees to a
variety of businesses in diverse industries.

• They help to speed up the process of industrialisation in the Indian states where they operate. 

• They support financially by loans, underwriting or direct subscriptions to debentures and shares, guarantees, and other
ways.

• They run a variety of promotional initiatives, such as entrepreneurship training and project discovery.  

• They get rare raw materials from both the domestic and foreign markets and make them available to small-scale companies
in need, according to their specifications.

• SIDCs make advance payments to get orders and distribute them across numerous small scale enterprises.

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• When industrial entities supply items to government departments, payments are frequently delayed. As a result,
SIDCs discount invoices drawn on government departments to minimise such delays.

• SIDCs use a variety of programmes to give effective marketing support to diverse industrial units. SIDCs are invited
to bid on tenders issued by state government departments.

• It aids in the resolution of various industrial units’ working capital issues.

• SIDCs assist the establishment of skill development centres, which teach people a variety of skills and industrial
operations. This is to guarantee that skilled labourers are available for diverse small-scale companies.

• It assists small-scale businesses in participating in international trade shows so that their products can be shown.

• The state industrial corporations engage in the development and also support industrial businesses run by women.

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• Directorate General of Supplies and Disposals (DGS&D)
• under Ministry of Commerce and Industry is a central purchase and quality assurance organisation. List of
registered firms, expired registered firms and banned firms is provided.
Functions:
• It is responsible for buying materials from authorized suppliers and distributing them to various government
and other quasi-governmental organisations such as railways, defence, postal department, etc., which are also
referred to as indenting organisations.

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FUNCTIONS:
• Directorate General of Supplies and Disposals is entrusted with the responsibility of;

• (i) Purchase and or/inspection of stores for Central Government Ministries/Departments including their attached and subordinate
offices and Union Territories other than the items of purchase and inspection of stores which are delegated to other authorities by
general or special order. With implementation of decentralization policy, procurement against adhoc indents was transferred from
the DGS&D to the indenting Ministries/Departments and procurement of common user items on Rate Contract basis continues to
be done by the DGS&D.

• (ii) Purchase and/or inspection of stores on behalf of those state Governments, Public Undertakings, Autonomous Bodies, and
Quasi-Public Bodies etc. who desire to avail of its services.

• (iii) To arrange clearance of stores imported against orders placed by the DGS&D and also orders placed by the other Central
Government Departments State Governments, Autonomous Bodies etc. if called upon to do so. To arrange shipment of stores
against contracts placed by the DGS&D wherever necessary or where such work is entrusted to the DGS&D by other authorities.

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• (iv) Registration of manufacturers, suppliers, stockists, Indian Agents of foreign manufacturers. Registration
Indian Agents of foreign suppliers as a nodal agency under the compulsory registration scheme as per the
directive of Ministry of Finance.

• (v) To utilize the expertise available in the filed of Purchase and Quality Management, the Training
Directorate will act as National Institute to impart/arrange training for government departments and
Industries.

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Registration of Firms :
• Generally, it is a mandatory requirement in DGS&D tender enquiries, for conclusion of Rate
Contract, that the bidders should be registered with DGS&D/NSIC/DGQA for that specific item
on the date of tender opening.

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What is Registration :

DGS&D, being the Central Purchase Organisation of Government of India, has a system of
registering firms for supply of various stores as approved contractors.The main object of
registration of firms as approved contractors is to have a broadbased panel of technically
capable, financially sound and reliable sources of supply to whom enquiries can be
addressed for Government purchases.

• The stores purchased by departments of Government of India, State Governments, Public

Undertakings etc through DGS&D cover almost all areas of industrial production.

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Eligibility & categories for registration :
• All firms, who are in the business of manufacturing, stocking or marketing of stores are eligible for DGS&D
registration if otherwise suitable, subject to specific conditions or restrictions stipulated in this document.

• Where such registration is granted based on manufacturing or marketing agreements, it shall be the
responsibility of the registered unit to keep such agreements renewed at all times to keep their registration
valid for the period for which the registration has been granted.

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Advantages in Associating with DGS&D
 Its REGISTRATION is held in high esteem by all Govt. Department/Agencies

 Award of rate contract lends respectability & image enhancement.

 Marketing effort required is nominal.

 Consistent & uniform purchase policies & procedures.

 Availability of technical guidance for upgrading manufacturing processes & for building product quality.

 Uniform Quality Assurance techniques lead to standardization.

 Registered suppliers are given prior intimation about tenders.

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Registration with DGS&D
 Registration with DGS&D is a process by which firms can get enlisted as an approved supplier to qualify for
participation in DGS&D procurement programme.

 DGS&D registers suppliers for specified items after verification of their technical capability, financial status
and reliability as a supplier.

 This registration is widely taken as a benchmark by other procurement agencies in India both in the State
and Central sectors.

• 20 Registration centres across the country deal with applications for registration on single window disposal
basis.

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Different Categories of Registration

 Indian Manufacturers/Assemblers/Converters.

 Authorised Agents/Distributors of registered Indian Manufacturers.

 Stockists of certain specified indigenous stores.

 Foreign Manufacturers with or without Indian Agents.

 Stockists of imported stores.

 Suppliers of imported stores.

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 Khadi and Village Industries Commission (KVIC)

• It is a statutory body formed in April 1957 by the Government of India, under the Act of

Parliament, 'Khadi and Village Industries Commission Act of 1956’.
• It is an apex organisation under the Ministry of Micro, Small and Medium Enterprises, with
regard to khadi and village industries within India,
• which seeks to - "plan, promote, facilitate, organise and assist in the establishment and
development of khadi and village industries in the rural areas in coordination with other
agencies engaged in rural development wherever necessary.".
• It refers to hand-spun and hand-woven cloth. The raw materials may be cotton, silk, or wool,
which are spun into threads on a charkha (a traditional spinning implement).
• Khadi was launched in 1920 as a political weapon in the Swadeshi movement of Mahatma Gandhi
.

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• Khadi is sourced from different parts of India, depending upon its raw materials - While the silk variety is
sourced from West Bengal, Bihar, Odisha and North Eastern states, the cotton variety comes from 
Andhra Pradesh, Uttar Pradesh, Bihar and West Bengal. Khadi poly is spun in Gujarat and Rajasthan while 
Haryana, Himachal Pradesh and Jammu and Kashmir Karnataka are known for the woolen variety.

• There are a wide range of Khadi personal care products manufactured in Uttarakhand 
Khadi Products - Handmade and Natural

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Implementation of Schemes and Programs

• The process of Implementation of schemes and programs starts at the Ministry of Micro, Small and Medium Enterprises
 which is the administrative head of the programs. The Ministry receives funds from the Government of India, and routes
these to the Khadi and Village Industries Commission for the implementation of programs and schemes related to Khadi and
Village Industries.

• The Khadi and Village Industries Commission then uses these funds to implement its programs either directly - Through its
29 state offices, by directly funding Khadi and Village institutions and co-operatives, or indirectly through 33 Khadi and
Village Industries Boards, which are statutory bodies formed by the state governments within India, set up for the purpose
of promoting Khadi and Village Industries in their respective states.

• The Khadi and Village Industries Boards, in turn, fund Khadi and Village Institutions/Co-operatives/Entrepreneurs.
• At present the developmental programmes of the commission are executed through, 5,600 registered institutions, 30,138 
Cooperative societies and about ~95 lakh people.

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Important Facts about KVIC for UPSC Prelims

Full-Form of KVIC Khadi Village and Industries Commission

Year of Establishment 1957

Type of Commission A Statutory Body

Concerned Ministry Ministry of MSMEs

Subsumed the work of All India Khadi and Village Industries Board

Official Website http://www.kvic.gov.in/

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Objectives of KVIC
• The broad objectives of the Khadi Village and Industries Commission encompassing self-reliance and
sustainability are:

1. To boost employment in the country.

2. To promote the promotion and sale of Khadi articles

3. To cater to the self-reliance doctrine of the country by empowering underprivileged and rural sections of
the society.

4. The wider objective of creating self-reliance amongst the poor and building up of a strong rural
community spirit

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Functions of KVIC
• The following are the functions of Khadi Village and Industries Commission:

1. It plans, promotes, organizes, and implements programmes for the development of Khadi and Village
Industries (KVI).

2. It coordinates with multiple agencies that are engaged in rural development for several initiatives w.r.t khadi
and village industries in rural areas.

3. It maintains a reserve of raw materials that can be further promoted in the supply-chain.

4. It aids in creating common service facilities that help in processing of raw materials.

5. It aids the marketing of KVI products through artisans and other avenues.

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1. It creates linkages with multiple marketing agencies for the promotion and sale of KVI products.

2. It encourages and promotes research and development in the KVI sector.

3. It brings solutions to the problems associated with the KVI products by promoting research study and
enhancing competitive capacity.

4. It also helps in providing financial assistance to the individuals and institutions related to the khadi and
village industries.

5. It enforces guidelines to comply with the product standards to eliminate the production of ingenuine
products.

6. It is empowered to bring projects, programmes, schemes in relation to khadi and village industries’
development.

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Progress of KVIC

• Some important highlights taken from the KVIC report regarding the Khadi and Village industries and the commission are:

1. The Prime Minister of India, Narendra Modi quotes, “Earlier it was Khadi for the nation, Khadi for fashion, now it is
becoming Khadi for transformation.”

2. The Mission Solar Charkha has empowered women by bringing self-esteem and self-reliance among them.

3. The significant transformation both in Khadi production and Khadi sales are mentioned from the figures below:

o The average Khadi production has grown from 6.52 percent in 2004-14 to 26.43 percent in 2015-18.

o The average Khadi sales grew from 6.62 percent in 2004-14 to 31 percent in 2015-18.

o The number of Khadi sales outlets funded for modernization stands at 728 between 2015-2018. There were no outlets
reported between 2004-2014.

o 400 computers, hardware and software have been supplied to Khadi institutions for digitalization between 2015 and
2018.

3. Khaadi Haat was set up for the first time in 2018 in New Delhi.
• Digital India Pavilion was established by KVIC in the India International Trade Fair. 28
Mission of the Organs of KVIC
• There are five organs of KVIC as mentioned above. The mission of each organ is given in brief below:

1. Organization: KVIC aims to take responsibility to develop KVI and unburden the government.

2. Community: To enable the rural community through promoting security for life.

3. Village Industry – To increase productivity in KVI sectors.

4. Market – To aid the sales and marketing of KVI products.

5. Heritage – To protect the socio-cultural value as a national asset.

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Industrial Estates

• An industrial estate is a tract of land subdivided and developed according to a comprehensive plan for the use
of a community of industrial enterprises. It is a planned clustering of industrial units offering standard factory
buildings and a variety of services and facilities to entrepreneurs.

• What is the function of the industrial estate?

• Industrial estate provides premises i.e. Land and Factory Shed for the establishment of a new industrial
undertaking and also other amenities such as power, water, transport etc. at a reasonable, cost

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Objectives of Industrial Estates:
 The main objectives of the establishment of industrial estates are :

 (i) To provide infrastructure and accommodation facilities to the entrepreneurs;

 (ii) To encourage the development of small-scale industries in the country;

 (iii) To decentralize industries to the rural and backward areas;

 (iv) To encourage capillarization in surrounding major industrial units; and

 (v) To develop entrepreneurship by creating a congenial climate to run the industries in these estates.

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Types of Industrial Estates:
Industrial estates are classified on various bases.
• The prominent ones are:

 1. Classification based on Functions:

o Based on functions industrial estates are broadly classified into two types :

• (i) General type industrial estates,

• (ii) Special type industrial estates.

 (i) General Type Industrial Estates:

o These are also called conventional or composite industrial estates. These provide accommodation to a wide variety and range of
industrial concerns. The Indian industrial estates are mainly of this type.

 (ii) Special Type Industrial Estates:

o This type of industrial estate is constructed for specific industrial units, which are vertically or horizontally interdependent.
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• 2. Classification based on Organizational Set-up:

 On this basis, industrial estates are classified into the following four types :

• (i) Government Industrial Estates,

• (ii) Private Industrial Estates,

• (iii) Co-operative Industrial Estates

• (iv) Municipal Industrial Estates.

• 3. Other Classifications:

 (i) Ancillary Industrial Estates:

o In such industrial estates, only those small-scale units are housed which are ancillary to, particularly large industries. Examples of such units are one
attached to the HMT, Bangalore.

 (ii) Functional Industrial Estates:

o Industrial units manufacturing the same product are usually housed in these industrial estates. These industrial estates also serve as a base for the
expansion of small units into larger units.

 (iii) The Workshop-bay:

o Such types of industrial estates are constructed mainly for very small firms engaged in repair work. 33
• The main objectives of Industrial Estate programme is to achieve the promotion of small scale industries by
providing facilities, assistance and guidance to small scale industries at every stage of establishment,
operation and management.

• What is an example of an industrial estate?

• Cluster: An industrial estate is a planned cluster of units. For e.g. Tirupur is a planned cluster of knitwear and
hosiery, Ludhiana is a planned cluster for machine tools, Surat for diamonds etc.

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• What is an Industrial Estate?

• An industrial estate is a place where necessary infrastructural facilities are made available to entrepreneurs.
Industrial parks, industrial zone, industrial area, industrial township are some of the other terms used to
denote industrial estates.

• What is the need for Industrial Estates in India?

• The principal objective of industrial estate programme is to achieve the promotion of small scale industries
by providing facilities, assistance and guidance at every stage of establishment, operation and management. It
aids in the expansion, diversification and modernization of existing small industries sector.

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 Features of Industrial Estates

• 1. Separate plots and sheds: The entire land area allocated to the estate is divided into different plots and sheds.
These plots and sheds are then allocated to the entrepreneurs at economical costs.

• 2. Cluster: An industrial estate is a planned cluster of units. For e.g. Tirupur is a planned cluster of knitwear and
hosiery, Ludhiana is a planned cluster for machine tools, Surat for diamonds etc.

• 3. Regional development: Industrial estates promote regional development. They have been instrumental in
developing backward areas in the country. They provide employment opportunities to many of the unemployed
youth in the regions in which they are located. For e.g. Ambattur Industrial Estate in sub-urban Chennai has
ensured
development of areas in and around Ambattur.

• 4. Common infrastructure: Infrastructure such as roads, electricity, water, telecommunications, postal facilities,
banks etc. are provided in the industrial estate. All enterprises located in the industrial estate can access the
infrastructural facilities located in the area.

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• 5. Promote industrialization: Industrial estates promote industrialization and economic development. They
provide the necessary facilities for setting up of industries. Since the required infrastructure is made available,
entrepreneurs feel encouraged to set up industrial enterprises.

• 6. Different sizes: Industrial estates can be promoted in different sizes based on the land availability,
requirements and potential for development.

• 7. Developed in all areas: Industrial estates can be developed in all areas such as urban, suburban and rural
areas. They can be developed in developed as well as in under developed areas.

• 8. Promotion through any agency: Industrial estates can be set up by the government, co-operatives or by the
private agencies. It can also be set up by public-private partnership.

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