KARNATAKA STATE FINANCIAL CORPORATION KSFC is a state level
financial institution established by the state govt. in the year
1959 under the state financial corporations act 1951 to cater to
the long term financial needs of small and medium enterprises in
the state of Karnataka
Area of operation: KSFC extends loans to industrial units/
services sector established/ to be established in the state of
Karnataka. Industrial concerns having registered office outside the
state of Karnataka can also avail financial assistance provided the
place of business is in Karnataka and they agree to shift their
registered office to the state of Karnataka
IMPORTANT LOAN SCHMES OPERATED BY KSFC : GENERAL SCHEME To meet
a part of cost of land, building, plant and machinery and other
fixed assets.
NATIONAL EQUITY FUND SCHEME ( NEFS) This scheme provides equity
of assistance (soft seed capital) upto rs. 10 lakh to small
entrepreneurs for existing and new projects in the tiny, small
scale, service sectors and for rehabilitation of potentially viable
sick SSI units.
MAHILA UDYAM NIDHI SCHEME( MUNS) This scheme is meant for
extending financial assistance for first generation woman
entrepreneurs to set up SSI units. The ceiling on the project cost
is rs. 10 lakh and the maximum equity assistance is rs. 2.50
lakh.
SCHEME FOR TECHNOLOGYUPGRADATION FOR TEXTILE INDUSTRIES ( TUFS)
The objective of the scheme is to provide encouragement for textile
industries (including cotton ginning and pressing units) in the
small scale industrial sector for technology upgradation and to
modernize their production facilities. This scheme covers projects
costing up to rs. 100 lakh and new and existing units are eligible
for assistance under the scheme.
Credit linked capital subsidy scheme( CLCSS) The objective of
the scheme is to facilitate technology upgradation of SSSI units or
SSI units graduating to MSI in specified products/Sub-sectors by
providing 12% capital subsidy on the loan given for machinery.
TECHNOLOGY DEVELOPMENT AND MODERNISATION FUND SCHEME (TDMF) The
objective of the scheme is to encourage the existing SSIs to
modernize their production facilities in order to improve
productivity, quality etc. and compete successfully in domestic and
international markets.
TDMF For availing loan under TDMF, the project cost shall not
exceed rs. 100 lakh. the scheme envisages reimbursement of 4 %
points interest. the term loan availed from the govt. of
Karnataka.
SINGLE WINDOW SCHEME( SWS) This loan scheme if its for providing
assistance to new tiny and small units whose project cost does not
exceed rs. 50 lakh and the total working capital requirement at the
normal level of operation is upto rs. 20 lakh. . Term loan for
fixed assets and term loan for working capital is fixed based on
the debt equity ratio of 2:1 for loans above rs. 10 lakh and 3:1
for loans upto rs. 10lakh
CORPORATE LOAN SCHEME ( CL) The objective of the scheme is to
extend short-term loans to the existing successful units who
require urgent working capital funds either to meet the gap in the
working capital requirements or funds required for executing the
rush of orders. The corporate loan is restricted normally to the
manufacturing sector.
RENTAL DISCOUNTING SCHEME The objective of the scheme is to
provide financial assistance on the strength of the future rentals
to be earned by non residential properties located within the city
and municipal limits of Bangalore, Mangalore, hublidharwad,
gulbarga, shimoga, badravati, mysore, belgaum subject to a gross
rent earnings of not less than rs. 25000 pm.
ACTIVITIES: ASSISTANCE TO HOTELS AND RESTAURANTS. ASSISTANCE TO
DOCTORS/HOSPITALS/ NURSHING HOMES. ASSISTANCE TO CONSTRUCTION
ACTIVITIES AND INFRASTRUCTURE PROJECTS.
ACTIVITIES: ASSISTANCE TO TOURISM RELATED ACTIVITIES. ASSISTANCE
TO ENTERTAINMENT INDUSTIRES
Prime objectives of KSFC It gives long term loans for purchase
of fixed assets like, land, building, machinery and equipment.
Loans are given for the new industrialization as well as for the
modernization of the existing units.
Prime objectives of KSFC Loans are not given for the repayment
of the working capital. Recently, SFC gives financial assistance
for the repayment of working capital worth rs. 10 lakhs. For this
purpose the total project cost limit is Rs. 20 lakhs.
INDUSTRIAL UNITS ENTITLED FOR THE LAONS FROM THE SFC ARE :
Proprietary concern. Partnership concern. Hindu undivided family.
Private limited company. Public limited company. Registered
co-operative society
LOANS GIVEN TO ACCORDING TO KSFC ACT, LOANS ARE GIVEN TO THE:
industrial units engaged in: Manufacturing, Preservation of
perishable products, Mining,
LOANS GIVEN TO Hotel industry, Testing, repairing and assembling
of any type of machinery and vehicles for the passengers and goods
transport by road or by sea.
IN SERVICE INDUSTRY IN THE SERVICE INDUSTRY SECTOR UNITS ENGAED
IN ACTIVITIES LIKE; Analytical and testing laboratories, Repairing
of the television, Repairing and maintenance of air
conditioning,
IN SERVICE INDUSTRY Computer services, tourism related
entertainment and cultural centres Video recording studio,
Weighbridges, Salt manufacturing,
IN SERVICE INDUSTRY Chicken meat production, Stone crushing,
Coal manufacturing for domestic use.
BENEFICIARIES KSFC has identified a certain group of
beneficiaries for financial assistance. Important beneficiaries are
listed below: General loan scheme for the technically and feasibly
viable projects. Purchase of machinery.
BENEFICIARIES Modernization. Quality standardization and testing
facility. Medical professionals, hospitals and nurshing homes
BENEFICIARIES small nurshing homes and diagnostic centres
ex-service men Women entrepreneurs. hotels and restaurants tourism
joint loans
BENEFICIARIES single window To avoid the sickness of the unit.
nation equity fund, mobile vans, marketing avenues for village and
cottage industry products
BENEFICIARIES Service industry as enlisted by SFC. Qualified
professionals. purchase of computers, vehicles,
ASPECTS TO CONSIDER IMPORTANT ASPECTS AND CONDITIONS CONSIDERED
BY KSFC WHILE SCRUTINISING THE LOAN PROPOSAL ARE; PROMOTERS
CONTRIBUTION DEBT-EQUITY RATIO MARGIN SECURITY AND COLLATERAL
SECURITY.
DIC - DISTRICT INDUSTRIES CENTRE To initiate the process of
industrial development in each district, the central government
established District industries Centres in each district of the
country. DIC functions under the directorate of industries.
DIC - DISTRICT INDUSTRIES CENTRE Each DIC is headed by General
Manager who is assisted by managers to look after the following
activities; Economic investigation Plant and machinery Research,
education and training.
DIC - DISTRICT INDUSTRIES CENTRE raw materials credit facilities
marketing assistance, Cottage industries
ROLE OF DISTRICT INDUSTRIES CENTRE: DIC is a nodal agency at
district level engaged in promotion and facilitation of industrial
development. Implementation of state industrial policy and
centrally sponsored schemes like Prime Minister Rojgar yojana,
special component programme, tsp for rapid growth of
industries.
EVENTS CONDUCTED BY DISTRICT INDUSTRIES CENTRE, BELGAUM DURING
05-06. Training programmes, forentrepreneurs and unemployed youth
to take up selfemployment in all talukas of the district. Product
demonstration on consumer products. Craft mela for marketing of
rural industries.
EVENTS BY DIC BELGAUM Study tour for entrepreneurs to gain
knowledge in recent technological advances. Identification of
potential beneficiaries and training them on management of micro
enterprises by way of short duration edps Survey of existing
infrastructure with specific reference to industrial
infrastructure.
EVENTS BY DIC BELGAUM Organized state level exhibition to
encourage artisans, self-help groups, and tiny units to advertise
and market their produce. Stake holders meet in coordination with
CEDOK, Dharwad. Statistically quality control for industrial
entrepreneurs.
OBJECTIVES OF DIC Encourage establishing new tiny and small
scale industries particularly in the rural area to achieve the twin
objective of the employment generation, and utilization of local
resources. Study of small scale industrial sector, present status,
problems and prospects for further growth.
OBJECTIVES OF DIC Give impetus to technology up gradation by
forging symbiotic and mutually beneficial institutional
arrangements between govt. academic, R&D institutions and
industry.
OBJECTIVES OF DIC Focus on catalyzing, comparative advantage
that Karnataka has in the global market by increasing its exports
in information, biotechnology, food processing, electronics, and
communications, garments, machine tools, and precision engineering
goods.
OBJECTIVES OF DIC Asist tiny small and medium scale industries
to upgrade their adopted technologies and help them to face the
increasing global competition. Promoting technology business
incubators/accelerators with the active involvement of private
sector.
OBJECTIVES OF DIC assist to set up science and technology
entrepreneurs park Assist and encourage private sector to establish
material and product testing centers as well as quality assurance
laboratories.
OBJECTIVES OF DIC Encourage SMEs to obtain ISO 9000, ISO 14000
and similar international criterion. Assist and encourage to avail
infrastructure development fund, industrial township etc.
OBJECTIVES OF DIC1. Develop large scale/ knowledge based work
force industrial work force through artisan training institutions,
district training institutes, polytechniques, centre for
entrepreneurship development of Karnataka and rural development and
self employment promotion
OBJECTIVES OF DIC Assist and promote associations and other
stake holders top establish and run specialized training
institutes. The district level single window agency headed by
deputy commissioner of the district will examine all proposals in
all sectors including industry, tourism, IT, BT, and agro food
processing and infrastructure with an investment upto 3 crores.
FUNCTIONS OF DIC: Acts as the focal point of the
industrialization of the district. prepares the industrial profile
of the district with respect to ; statistics and information about
existing industrial units in the district in the large, medium,
small as well as co-operative sectors
FUNCTIONS OF DIC: opportunity guidance Compilation of
information about local sources of raw materials and their
availability. Manpower assessment with respect to skilled,
semi-skilled, workers. Assessment of availability of infrastructure
facilities like quality testing, research and development,
transport, prototype development, warehouse..
FUNCTIONS OF DIC: Organizes entrepreneurship development
training. Provides information about various govt. schemes,
subsidies, grants, and assistance available from the other
corporations set up for promotion of industries. Gives SSI
registration.
FUNCTIONS OF DIC: Prepares techno-economic feasibility report.
Advises the entrepreneurs on investments. Acts as a link between
the entrepreneurs and the lead bank of the district. Implements
govt. schemes for educated unemployed people, jawahar rojgar yojana
etc.
FUNCTIONS OF DIC: Helps entrepreneurs in obtaining licenses from
the electricity board, water supply board, no objection certificate
etc. Helps the entrepreneur to procure imported machinery and raw
materials. Organizes marketing outlets in liaison with other govt.
agencies.
FINANCIAL ASSISTANCE SCHEMES (DEPARTMENTAL) 1) Prime Minister
Rozgar Yojona (PMRY) It is a self-employment scheme for educated
unemployed youth with eligibility... a) Class VIII passed b) Age 18
to 35 years (relax able upto 45 years for SC / ST / Women /
Physically handicapped / Ex-Servicemen) c) Project upto Rs 2.00
lakh for Industries/Service and Rs 1.00 lakh for Business d) Annual
family income Rs 40,000/- (Max)
FINANCIAL ASSISTANCE SCHEMES (DEPARTMENTAL 2) Normal Bank
Finance Scheme If is one of the major schemes for setting up SSI
unit. The Projects/Schemes for the purpose should have sufficient
equity participation
FINANCIAL ASSISTANCE SCHEMES (DEPARTMENTAL ) Loan under BSAI Act
This assistance is mainly for Handicrafts Sector. Limit of loan
upto Rs 10,000/-. The rate of interest is 8% with a rebate of 2.5%
on regular re-payment.
FACILITIES AND OTHER SERVICES 1. S.S.I. Registration a)
Provisional/Temporary Registration: Before starting the SSI Unit,
this registration is issued b) Permanent/Final Registration: After
commencement of production of SSI Unit, this registration is issued
2. Preference for power connection Priority is given for WBSEB
electric power connection to registered SSI Unit
FACILITIES AND OTHER SERVICES 3. Project/Scheme Vetting Project
Scheme of SSI unit is vetted for technical feasibility 4. Marketing
Assistance to Handicraft Products Given through participation in WB
Handicrafts Expo' 5. Special Assistance rendered For setting up
Haldia Petrochemicals Downstream Units.
FACILITIES AND OTHER SERVICES 6. National Project of Bio-Gas
Development (NPBD) Construction of Bio-gas plant (family size 1-cum
to 10-cum). Main usage are... a) Domestic cooking and lighting b)
Production of organic manure (enriched with NPK) for better yield
in agricultural, horticultural & pisicultural sectors c) Helps
to maintain ecological balance. Provision of Govt. subsidy to all
categories of beneficiaries
FACILITIES AND OTHER SERVICES 7. Pollution Clearance for SSI
Units Pollution Clearance Certificate (consent for starting all
categories, viz. Green, Orange, Red of SSI units) is issued on
behalf of WBPCB and also the consent to operate for Green category
only
FACILITIES AND OTHER SERVICES 8. Training Programme some
training programmes on different trades as mentioned below are
organised from time to time for prospective entrepreneurs and
handicraft artisans Entrepreneurship Development Programme Special
Training Programmes for Women/Physically Handicapped and Backward
Classes (plumbing, pumpset repair, umbrella repair, batik print,
etc.)
FACILITIES AND OTHER SERVICES Transfer of Skill and Service
Centres (terracotta) Design Development/Craft Development for
Handicraft Industries, Cane and Bamboo Products, Wood Carving,
Solapith work
FACILITIES AND OTHER SERVICES 9. REGP/BSKP/Minority Loans
Technical vetting of project/scheme is done here for these extra
departmental financial assistance schemes...
FACILITIES AND OTHER SERVICES a) REGP (Rural Employment
generation programme) It is launched by Khadi and Village
Industries Commission. The main features are... - Meant only for
rural areas of population (less that 20,000) and for viable
villageindustry projects. - Maximum limit projects upto Rs 10.0
lakhs and Rs 25.0 lakhs for institution @ 30% project cost upto Rs
10.00 lakhs will be provided as Margin Money in the form of backend
subsidy after 2 years.
FACILITIES AND OTHER SERVICES b) BSKP: Bangla Swanirbhar Karma
Sangthan Prakalpa This Scheme is promoted by Youth Welfare
Department. The key features are... For municipal areas only
Projects on industry, service & business sectors Projects upto
Rs 10.0 lakhs for individual @ 20% Govt. Subsidy on the project
cost
FACILITIES AND OTHER SERVICES c) MINORITY: Self-employment
Project for Minority Communities only. Scheme is financed and
promoted by West Bengal Minorities Development & Finance
Corporation (WBMDFC). The main features are... Age 18 to 45 years
Annual family income Rs 42,142/- for urban area and Rs 31,952/- for
rural areas Generation of Govt. or Semi Govt. employee upto 53
years Interest 7.5% pa
Registration of small-scale industries The industrial unit,
which have investment upto Rs. One crore in plants and machinery
can be registered as small-scale industries by the General Manager,
District Industries Centre,
Registration of small-scale industries Registration has been
divided in two categories Provisional registration 1. and 2.
Permanent registration
Documents required for provisional registration Application form
Affidavit Copy of project report Copy of land ownership proof Copy
of partnership deed in case of partnership firm General power of
Attorney in case of partnership form
Documents required for provisional registration Copy of
resolution of Board of director in case Pvt. Ltd./ Ltd. Co. Copy of
Memorandum articles in case of Pvt. / Ltd. Co. Any other documents
required as per project.
Documents required for provisional registration The above
documents are required for permanent registration except copy of
project report.
TECHNICAL CONSULTANCY ORGANISTIONS (TCOs) All India Financial
Institutions in association with State Level Institutions and Banks
have set up 18 State level TCOs, of which 9 have been lead
sponsored by IDBI, 5 by IFCI and 3 by ICICI and one sponsored by
Govt. of Karnataka. In general, the operations and profitability of
TCOs are at a very modest level or leading to losses.
SERVICES OFFERED Project Conceptualization and other related
services. Guidance regarding the selection of projects Preparation
of feasibility studies and detailed project reports Capital
structuring Project appraisals and Risk analysis Project management
design
SERVICES OFFERED Credit Syndication Preparation of application
for assistance from financial institutions/Banks, offer documents
and information memorandum Syndication of domestic and foreign
loans and post sanction follow up
SERVICES OFFERED Documentation of project reports Assistance in
preparing various project specific agreements including credit
documents
SERVICES OFFERED Restructuring of Projects Turnaround strategy
design including rehabilitation Mergers and Acquisitions,
Assistance in BIFR approvals, Assistance in striping / sale of
units / management tie-up Purchase, sale and transfer of Assets
Separation, Liquidation, disposal of non-strategic ventures
KVIC KHADI AND VILLAGE INDUSTRIES COMMISSION. The development of
Khadi and village industries provides opportunities for work. Part
time work, in certain cases and there by helps to mitigate the
severity of rural unemployment and underemployment. With this end
in view the KVIC was established in April 1957, under the Khadi and
village industries commission act 1956.
KVIC KHADI AND VILLAGE INDUSTRIES COMMISSION Role of KVIC
Training of artisans. Extension of assistance for procurement of
raw materials. Marketing of finished products. Arrangement for
manufacturing and distribution of improved tools, equipment and
machinery to producers on concessional term.
FUNCTIONS: Some of the major functions of KVIC are... The KVIC
is charged with the planning, promotion, organisation and
implementation of programs for the development of Khadi and other
village industries in the rural areas in coordination with other
agencies engaged in rural development wherever necessary.
FUNCTIONS:y Its functions also comprise building up of a reserve
of raw materials and implements for supply to producers, creation
of common service facilities for processing of raw materials as
semi-finished goods and provisions of facilities for marketing of
KVI products apart from organisation of training of artisans
engaged in these industries and encouragement of cooperative
efforts amongst them..
FUNCTIONS: To promote the sale and marketing of khadi and/or
products of village industries or handicrafts, the KVIC may forge
linkages with established marketing agencies wherever feasible and
necessary
FUNCTIONS:y Further, the KVIC is entrusted with the task of
providing financial assistance to institutions and individuals for
development and operation of Khadi and village industries and
guiding them through supply of designs, prototypes and other
technical information.
FUNCTIONS:y In implementing KVI activities, the KVIC may take
such steps as to ensure genuineness of the products and to set
standards of quality and ensure that the products of Khadi and
village industries do conform to the standards.
FUNCTIONS:y The KVIC may also undertake directly or through
other agencies studies concerning the problems of Khadi and/or
village industries besides research or establishing pilot projects
for the development of Khadi and village industries.
FUNCTIONS:y The KVIC is authorized to establish and maintain
separate organisations for the purpose of carrying out any or all
of the above matters besides carrying out any other matters
incidental to its activities.
KVIC ' S MARGIN MONEY SCHEME Government of India through Khadi
and Village Industries Commission has introduced Margin Money
Scheme ( MMS) in order to create large employment opportunities in
rural areas of the Country.
KVIC ' S MARGIN MONEY SCHEME This scheme is to encourage
establishment of village industries in the Country by providing
certain fixed amount as Margin Money.
KVIC ' S MARGIN MONEY SCHEME Since 1997, this programme is being
implemented through Nationalized Banks. To supplement the efforts
of the Nationalized Banks and to ensure that the scheme reaches the
nook and corners of the State, this scheme is being now extended to
Co-operative Banks, Private Sector Scheduled Commercial Banks and
State Financial Corporation.
FEATURES OF THE SCHEME : This scheme is applicable for units
coming up in rural areas only for establishing village industry
projects. Rural Area means : Which is classified as ' Village '
under revenue records of the District and includes the area
comprised in any town, the population of which does not exceed
20,000 as per 1991 census or such other figure as the Central
Government may specify form time to time.
FEATURES OF THE SCHEME : Village Industry means: Any industry
located in rural area which produces any goods or renders any
services with or without the use of power and in which the fixed
capital investment per head does not exceed Rs. 50,000/- or such
other figure as the Central Government may specify from time to
time.
Negative list However, following industries / activities
classified under " Negative List " shall not be eligible for
funding under the scheme .
Negative list a) Any industry / business connected with meat (
slaughtered), i.e. Processing, canning and / or serving items made
of it as food, production/ manufacturing. b) Sale of intoxicant
items like beedi / pan / cigar / cigarette etc., c) Hotel of dhaba
or sales outlet serving liquor.
Negative list d) Preparation / producing tobacco as raw
materials. e) Tapping of toddy for sale. f) Any industry/ business
connected with cultivation of crops/ plantation like tea, coffee,
and rubber etc., sericulture (Cocoon rearing). g) Activities
related to coir, horticulture, floriculture, animal husbandry like
pisciculture, piggery, poultry etc.,
Negative list h) Khadi and Polyvastra and any project producing
yarn and cloth. i) Manufacturing of plastic carry bags of less than
20 microns thickness. j) Manufacturing of carry bags or containers
made of recycled plastics for storing, carrying, dispensing or
packaging of food stuff. k) Any other item which causes
environmental problems.
Fixed Capital a) Work shed ( only in cases where it is very
essential ) b) Machinery / Equipment c) Preliminary & Pre
-operative expenses d) Miscellaneous fixed assets e) Interest
during implementation f) Deposits (KEB, Telephone etc.) g)
Contingencies.
Working Capital : One cycle of working capital requirement is
also included in the project cost. v) Banks must ensure investment
of " own contribution " of the individual / co-operative society
etc., @ 10% of the total cost of the project for general category
and 5 % in the case of special category.
TRAINING: Training has been made compulsory under this scheme.
The cost of the training to be included in the cost of the project
In order to enhance quality lending and success rate of the Margin
Money Scheme, it is proposed to conduct training programme for the
potential entrepreneurs in three stages:
TRAINING: a) Entrepreneur Awareness Programme (EAP) b)
Entrepreneurship Development programme (EDP) c) Skill Development
Program (SDP)
Entrepreneur Awareness Programme (EAP) ) This programme is
conducted for all the potential entrepreneurs who are willing to
establish rural based industries by availing assistance under
Margin Money Scheme. This programme is intended to create awareness
about Margin Money Scheme and to identify potential entrepreneurs
who can be given further intensive training on entrepreneurship.
The duration of the programme is one day.
Entrepreneurship Development Programme (EDP) This programme will
be conducted for the candidates who have attended EAP and shows
entrepreneurial qualities to establish specific industry. This
programme is intensive in nature and all the inputs necessary for
becoming a successful entrepreneur will be provided in this
programme. The duration of the training programme is for 15 days.
and preferably residential in nature.
Skill Development Programme (SDP) This training programme will
be organized for the candidates Completing EDP and further requires
Skill Development in the specific field. The duration of the
training varies from 7 days to 3 months depending on the
requirement of the particular activity .
HOW TO CLAIM ? The Co - operative Banks, Private Scheduled
Commercial Banks and State Financial Corporation can claim margin
money amount on selective basis directly from the Khadi and Village
Industries Board with the following documents.
HOW TO CLAIM ? A copy of the certified relevant ledger extracts
of the loan account to prove that the total loan has been release
to the unit. Duly filled -in application form as indicated in
proforma -1.
INVESTMENTS SUBSIDY : In addition to the Margin Money, certain
activities in some Districts / Taluks are also eligible for
investment subsidy on the fixed assets investment as per the New
Industrial Policy ( 2001-2006) announced by the State Government.
For the purpose of the subsidy the State is categorised into A, B,
C & C Zoncs as indicated
CERTIFICATE OF REGISTRATIONThe KVIB will issue a Certificate of
Registration after due verification of the new unit by the
concerned District Officer. This certificate will facilitate the
beneficiary to avail various incentives and concession offered by
the State and Central Governments. The Certificate of Registration
format is enclosed.