Executive Summary E S F R -STRUCTURING OF DIC ... - ni-msme › nimsme_hindi › ranzo › uploads... · (An organisation of the Ministry of MSME, Yousufguda, Hyderabad Phone: +91-40

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Executive Summary

EVALUATION

RE-STRUCTURING OF

Department of Micro, Small and Medium

Enterprises,

NATIONAL INSTITUTE FOR MICRO, SMALL AND MEDIUM ENTERPRISES

(An organisation of the Ministry of MSME, Yousufguda, Hyderabad

Phone: +91-40

VALUATION STUDY FOR RE-ENGINEERING AND

TRUCTURING OF DIC, DEPARTMENT OF

Sponsored By:


Enterprises, Govt. of Odisha

Submitted By:


(An organisation of the Ministry of MSME, Govt. of India)

Yousufguda, Hyderabad – 500 045 40-2360 8544 to 46 Fax: +91-040-2360 8547

Website: www.nimsme.org

ENGINEERING AND

EPARTMENT OF MSME



of India)

2360 8547

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Executive SummaryExecutive SummaryExecutive SummaryExecutive Summary

About the proposal and need of the study

Odisha State Government is to generate employment by promoting enterprises in all locations and

for that we were in the discussion for long time to find out a solution. Since the agragarian society

at Odisha is progressing towards massive industrialisation and it has been fairly advanced, thus it is

felt necessary to promote secondary and tertiary sectors of the economic activities in order to

improve the overall economy of the State as well as to curb the mounting unemployment

problems.

For this purpose thrust has been given to establish, promote and develop the enterprises in all

sectors, particularly in backward areas where it is essentially needed. The Government is also

actively leading towards promoting self-employment opportunities in rural, semi-urban areas by

extending all sorts of support needed for establishment of an industry. Office of the Directorate of

MSME and the District Industries Centres are the only delivery channels for the MSME Policy of the

State. Organisation structure of these delivery instruments remained unchanged during the past

three decades and odd. While the office of the Directorate of Industries deals with large, medium

and small industries, the DICs mostly deal with MSEs and help implementation of certain directives

relating to other sectors. In this context, the DIC is the institution at grass root level (district level),

since its inception from 1979, which provides all the services and support facilities to the

entrepreneurs for setting up micro and small enterprises in the State.

The reform agenda of the second half of the nineties pursued by the State Government somehow

overlooked structural reforms of delivery instruments as its essential components.

It is therefore, considered necessary to study the Organisational Structure of DICs & Directorate for

delivering results to the intended sections particularly the MSMEs that have been provided in all

parts of the developed world a level playing field with their large counterparts through appropriate

State intervention.

ni-msme is keen on making functions of officers of DICs more effective to cope up with the several

tasks assigned to them under the coordination of The Directorate of Industries. In order to identify

strengths, weaknesses and other factors relating to the DICs, it is of paramount need to conduct a

detailed evaluation study of all the officers of DICs and would be benefited by equipping themselves

for better augmentation in rending their services effectively to the entrepreneurs.

These structures have outlived their utility and they have also not been in a position to act as

effective instruments of MSME policy to take the State as the most favoured destination. It has

become essential to revamp the delivery of DICs and COI for the benefit of entrepreneurs which is

also the need of the hour.

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Objectives of this study:

As the need was felt to identify non-conventional projects using local resources to avoid activities

(ventures), that have reached to the saturation level by now.

Location specific plans are to be made available for indicating an inventory of all resources available

in a district. Thus, the role of implementing agency (DIC) and their needs are to be assessed to

render effective support to the entrepreneurs in the state with two basic objectives.

Long-term objective: Professionalisation of delivery through change

management (Rendering Soft Interventions through required trainings).

Short-term Objectives: Bring a Structural change through redefining the role

and responsibilities for the delivery and to identify the emerging training needs

of the officers for fostering the growth of enterprises in the state.

Methodology adopted for this study:

For this study, all the districts of the State was covered with designed stake holder’s questionnaire.

DIC is considered to be the dependent variable and the result of its performance should be

indicative with the employment generation numbers. Other questionnaires with the Opinion

Leaders, Indistrial Associations and prominent Engineering/Management Colleges in that area had

been administered and that revealed the 360 evaluation performance of DIC explained in last few

chapters. The performance index of the districts is computed on the number of projects

implemented in operation and number of employment generated. Lead bank/financial

organisations/prominent NGO and all other stakeholders were also contacted in each district along

with DIC officials.

A group of enterprises/associations were contacted to elicit the information about the present and

future needs in terms of infrastructure, institutional support, awareness programmes, marketing

support, etc., in each district.

In each district, efforts were shown to identify non-conventional products based on auditing

resources both material as well as human. Frequent interactions with officials were planned to

understand the role of Directorate of Industries at state level.

Online questionnaires had been also designed to collect the unbiased responses from the

interested stake holders, which had been proved really beneficial for this study. Many of the young

and dynamic stake holders came to it spontaneously and had given their honest opinion which

helped us framing the last chapter of this study.

For the data analysis we have used two softwares e.g. SPSS 17.0 and AMOS 21.0. The graphs were

generated by SPSS 17.0 only.

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Results, observation and suggestion

There had been four types of stake holder’s questionnaire designed to understand

the DIC’s current situations and out of those suggestions trying to conclude this study, because

stake holders are the direct/ indirect beneficiaries of the DIC/RIC’s.

1) Assessment from Head/Professors from Engineering/Management

Colleges at Odisha:-

The suggestions received from this segment were manifolded, while discussing the image of the

DIC/RIC’s they’ve indicated the Brand Image of DIC’s to be improved and awareness campaigns are

needed to done. They’ve also suggested that, in the mission of enhancing the state

entrepreneurship, DIC’s need to also reach to the Govt. aided or funded colleges and provide

entrepreneurship skill development trainings (ESDP’s) funded by State as well as Central

Government. DIC’s must improve its efficiency and services quality to the common people

especially to the students.

2) Feedback from Opinion Leaders and Govt. Officials

This segment suggested that, DIC’s need to invest money to create corporate ambience to their

offices with modern furniture and work culture, so that a budding entrepreneur feel impressed

while meeting the officials at the office, moreover Industrial Estates are far off, hence they may

have to be located in a prominent place where people can reach easily. District/ Block level DIC IPO/

IPO’s are mainly working for the District Magistrate or BDO’s and doing less work for the MSME

promotions, hence their knowledge and skills are needed to be upgraded and they need to be

trained thoroughly.

3) Feedback from entrepreneurs and industries associations

This group of people suggested that, the DIC websites are needed to be updated and DIC seriously

look into improving the image of theirs in the eyes of even existing entrepreneurs. It’s not only the

website, the office space and others are actually giving an image to the people about “crammed”

which might be very negative to motivate entrepreneurs to visit and getting some helps from DIC’s.

While discussing about the Customer satisfaction review the outcome is “unrealistic” and

“confusing”.

4) Feedback from DIC Officials:

These segments of the people are the direct beneficiaries of DIC/RIC’s working at the different

capacities and had given feedback about the improvements of the DIC’s. In this group we’ve found

there are clearly two segments of people one segment that’re regular staffs and another segment

are working on temporary basis. One common factor in-between both the segments is that both of

them strongly believe that, DIC’s must improve in its Building, Infrastructure, training and

implementing transparent HR policies relating to wage, transfer and promotions. Regular training is

imperative about MSME’s but more important is basic computer trainings and gadgets/ mobile

devices to fill-up online EM1 at block level. There must be one shed dedicated for DIC officials

instead of using the common office from BDO.

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Several other suggestions received from all the segments which are discussed in the last chapter

titled as “Discussions and Conclusions” in details and those are scientifically proven through data

analyses and using modern tools.

The researcher found the major lacuna in the DIC is unavailability of a working model with more of

centralised approach relating to implementing all the schemes of Government. However, the role of

DIC is multifaceted and with time DIC has moved away from its major mandate moreover, the value

to the DIC had been diluted because many other organisations have taken over those roles e.g.

Banks instead of OSFC and IPICOL etc.

A complete revamp is necessary by infusing new blood to the system and adopting modern work

culture and the culture of learning to the existing people. There are several vacant positions which

are needed to be filled-up with technical graduates who would be able to understand the needs

and requirements of the modern businesses with adequate computer literacy. DIC needs to adopt

new skills, develop new expertise and identify new horizon for enhancing its value to create a

positive vibe amongst the common people in the State.

Current Structure of DI-Odisha

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Current Structure of DIC-Odisha

Current Staffing Pattern

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Sanctioned existing Strength and Vacancies for RIC/DIC’s

Three tier District Industries Centre(DIC’s) is headed by the General Manager, who

is a class-I officer (Inter). Under him Managers, DCIO in the rank of class-I (Jr.) and

Asst. Managers in the rank of class-II, and Industries Promotion Officers (class-III

employees) at block level and Industrial Supervisors in Headquarter are functioning

and assisting in different promotional activities i.e., MSME sector, handicraft sector,

cottage & village industries sector & coop, societies (Ind) sector.

The basis of proposed Re-Structuring of DI & DIC at Odisha:

Results, observation and suggestion - Assessment from Head/Professors from Engineering/ Management

Colleges at Odisha:-

• The suggestions received from this segment were manifolded, while

discussing the image of the DIC/RIC’s they’ve indicated the Brand Image of

DIC’s to be improved and awareness campaigns are needed to done. (Down

Stream & Upstream Section is created to address this issue).

• They’ve also suggested that, in the mission of enhancing the state

entrepreneurship, DIC’s need to also reach to the Govt. aided or funded

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colleges and provide entrepreneurship skill development trainings (ESDP’s)

funded by State as well as Central Government. (EDP, ESDP & MDP Cell

Created- MSME2)

• DIC’s must improve its efficiency and services quality to the common people

especially to the students. (HR Cell under Admin is created to formulate the

staffing strategy and implement KPI and performance)

Feedback from Opinion Leaders and Govt. Officials

• This segment suggested that, DIC’s needs to invest money to create corporate

ambience to their offices with modern furniture and work culture, so that a

budding entrepreneur feel impressed while meeting the officials at the office,

moreover Industrial Estates are far off, hence they may have to be located in

a prominent place where people can reach easily. (DI Admin- Civil

Construction and Maintenance)

• Block level IPO’s attached to the block are mainly reporting to the BDO’s and

getting less opportunity to work for the MSME promotions, hence their

knowledge and skills are needed to be upgraded and they need to be trained

thoroughly. Needed to create training rooms for ToT at DI by the DI Admin.

Feedback from entrepreneurs and industries associations

� This group of people suggested that, the DIC websites are needed to be

updated and DIC seriously look into improving the image of theirs in the eyes

of even existing entrepreneurs. (Under IT Cell of DI-Admin Block)

� It’s not only the website, the office space and others are actually giving an

image to the people about “crammed” which might be very negative to

motivate entrepreneurs to visit and getting some helps from DIC’s. (Admin).

� While discussing about the Customer satisfaction review the outcome is

“unrealistic” and “confusing”. (MSME-2 would Address this issue)

. Feedback from DIC Officials:

• These segments of the people are the direct beneficiaries of DIC/RIC’s

working at the different capacities and had given feedback about the

improvements of the DIC’s. In this group we’ve found there are clearly two

segments of people one segment that’re regular staffs and another segment

10 | P a g e

are working on temporary basis. One common factor in-between both the

segments is that both of them strongly believe that, DIC’s must improve in its

Building, Infrastructure, training and implementing transparent HR policies

relating to wage, transfer and promotions. (HR Cell ).

• Regular training is imperative about MSME’s but more important is basic

computer trainings and gadgets/ mobile devices to fill-up online EM1 at

block level. There must be one shed dedicated for DIC officials instead of

using the common office from BDO. (HR Cell).

Several other suggestions received from all the segments which are discussed in the

last chapter of the detailed report titled as “Discussions and Conclusions” in details

and those are scientifically proven through data analyses and using modern tools.

Feedback from DIC Officials:

• The researcher found the major lacuna in the DIC is unavailability of a

working model with more of centralised approach relating to implementing

all the schemes of Government. However, the role of DIC is multifaceted and

with time DIC has moved away from its major mandate moreover, the value

to the DIC had been diluted because many other organisations have taken

over those roles e.g., Banks instead of OSFC and IPICOL, etc. (MSME 2).

• A complete revamp is necessary by infusing new blood to the system and

adopting modern work culture and the culture of learning to the existing

people. There are several vacant positions which are needed to be filled-up

with technical commercial (Tech/ MBA) graduates who would be able to

understand the needs and requirements of the modern businesses with

adequate computer literacy. DIC needs to adopt new skills, develop new

expertise and identify new horizon for enhancing its value to create a positive

vibe amongst the common people in the State. (MSME 3 and the new market

oriented focussed structure).

DIC Official’s Feedback in Details:

The following points had been stressed by the internal employees as given below.

• Own building- Admin

• Own training hall-Admin

• Computerisation of DIC office - Admin

• Enhancing skill of staff -HR

• Increasing number of staff-HR

• Have centralised review meetings covering all issuers every 3 to 6 months-

HR

• Create new industrial estates-Admin

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• Provide exposure visit to entrepreneurs to places with good practices-HR

• Implement schemes at Gram Panchayat level- Admin

• Have staff with specialisation in marketing- Ancillary & Downstream

• Provide laptop/tablets to all IPOs (314) having internet connectivity to

report from field and help the entrepreneurs submitting Entrepreneurs

Memoradum (EM1 & EM2) from the block level.- Admin

• Have regular monitoring of staffs.- Admin

Training Needs for the DIC Officials: Training Needs - Desired Capabilities -

Current Capability of the target group- Immediate Task for HR in Admin

� There is a tremendous need for detailed evaluation study for TNA for different

sectors of officials working in DIC’s.

� As State Government is promoting e-Governance, majority of the people requires

basic training in Computer operating Microsoft Office and Internet. ni-msme can

arrange to train the people at IED, Bhubaneswar, Odisha if Govt. of Odisha

supports the activities.

� There are training needs categories e.g.

� Basic Training and Induction programmes to MSME Schemes

� Basic Computer Trainings with Microsoft Office and Internet

� Basic Managerial Trainings

� Leadership Trainings only for GM & AGM’s

� Managerial trainings are for the promoted officers at the level of Managers or

Manager i/c from the lower cadres could be done in different phase at ni-msme,

Hyderabad.

� Leadership trainings are for the GM’s and AGM’s only could be done in different

phase at ni-msme, Hyderabad.

SWOT Analysis for DI and DIC’s at Odisha:

Strength:

12

| P

ag

e

Su

gg

es

ted

DI

Str

uc

ture

(M

ac

ro

Or

ga

no

gr

am

):-

DIR

EC

TO

R

Ad

min

•

Ad

min

istr

ati

on

•

Ad

min

istr

ati

on

of

DIC

•

Bu

dg

et

•

Au

dit

an

d A

cco

un

ts

•

HR

D

•

Civ

il C

on

stru

ctio

n

an

d M

ain

ten

an

ce

•

Ex

hib

itio

n, F

air

an

d

Pu

bli

city

•

Sta

tio

ne

ry/

Sto

re

•

Lib

rary

/N

ew

s

lett

er/

Bu

lle

tin

•

IT

MS

ME

-1

•

Ind

ust

ria

l p

lan

nin

g a

nd

po

licy

fo

rmu

lati

on

•

Pro

ject

Pre

pa

rati

on

•

Cre

dit

flo

w t

o M

SM

E,

Ve

ntu

re C

ap

ita

l

•

Re

viv

al

of

Sic

k U

nit

•

MIS

, Sta

tist

ics

&

Da

tab

ase

(ra

w m

ate

ria

l,

ma

chin

ery

, fu

els

an

d

con

sum

ab

les,

pa

cka

gin

g)

•

MS

ME

Dir

ect

ory

•

GI

& I

nte

lle

ctu

al

Pro

pe

rty

Rig

hts

(IP

R)

•

Re

sou

rce

ma

pp

ing

•

Ind

ust

ry m

ap

pin

g

•

Pro

ject

re

po

rt p

rep

ara

tio

n

•

Po

licy

Fo

rmu

lati

on

•

Info

rma

tio

n f

aci

lita

tio

n

Ce

nte

r

MS

ME

-2

•

Imp

lem

en

tati

on

of

IPR

an

d i

nce

nti

ve

ad

min

istr

ati

on

•

En

tre

pre

ne

urs

Me

mo

ran

du

m a

nd

GIP

•

Le

ga

l C

ell

•

Gri

ev

an

ce r

ed

ress

al

•

Clu

ste

r D

ev

elo

pm

en

t

•

Fa

cili

tati

on

of

raw

ma

teri

al

an

d f

ue

l

•

Ex

po

rt p

rom

oti

on

•

NM

CP

•

Sin

gle

Win

do

w

MS

ME

-3

•

Fo

od

pro

cess

ing

•

Fo

od

pa

rk

•

ED

P/

Tra

inin

g/

Aw

are

ne

ss f

or

En

tre

pre

ne

urs

•

Ma

np

ow

er

an

d S

kil

l

De

ve

lop

me

nt

•

Go

vt.

Sp

on

sore

d S

elf

-

em

plo

ym

en

t &

em

plo

ym

en

t g

en

era

tio

n

•

Ru

ral

Ind

ust

ria

l E

sta

tes/

Ru

ral

MS

ME

Pa

rk

•

Infr

ast

ruct

ure

An

cil

lar

y &

Do

wn

str

ea

m

•

Pro

mo

tio

n o

f la

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ind

ust

ry

•

De

ve

lop

me

nt

of

An

cill

ary

an

d

Do

wn

stre

am

In

du

stri

es

•

An

cill

ary

an

d

Do

wn

stre

am

Pa

rk

•

Ve

nd

or

De

ve

lop

me

nt

•

Te

chn

olo

gy

Up

gra

da

tio

n a

nd

inn

ov

ati

on

•

B-2

- B

Me

et

•

La

rge

In

du

stri

es

req

uir

em

en

ts

•

SE

Z

•

Ince

nti

ve

Ad

dl.

Dir

ect

or

Ad

dl.

Dir

ect

or

Ad

dl.

Dir

ect

or

Ad

dl.

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or

JT

. D

ire

cto

r

(1)

JT. D

ire

cto

r (1

)

JT. D

ire

cto

r (1

)

JT. D

ire

cto

r (1

)

JT. D

ire

cto

r (1

)

Dy

. Dir

ect

or

(2)

Ass

t. D

ire

cto

r (2

)

Dy

. Dir

ect

or

(2)

Ass

t. D

ire

cto

r (2

)

Dy

. Dir

ect

or

(2)

Ass

t. D

ire

cto

r (2

)

Dy

. Dir

ect

or

(1)

Ass

t. D

ire

cto

r (2

)

KV

IB &

Co

-op

•

Pro

mo

tio

n o

f S

alt

se

cto

r

•

Pro

mo

tio

n o

f C

OIR

sect

or

•

Pro

mo

tio

n o

f K

ha

di

&

Vil

lag

e I

nd

ust

rie

s

•

Co

-op

era

tiv

e M

att

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PP

Co

mp

an

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Ad

dl.

Dir

ect

or

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ire

cto

r (1

)

Dy

. Dir

ect

or

(1)

Ass

t. D

ire

cto

r (2

)

Ad

dl.

Dir

ect

or

Dy

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Dir

ect

or/

CA

O (

2)

Ass

t. E

ng

ine

er-

1/

PO

-1/

EO

-2

13 | P a g e

Micro Organogram –DI

Dy. Director

HRM-1 HRM-2

DI- Admin Section Structure

Addl. DI (Admin)

2

CAO

Budget Accounts Audit

Audit

Exec. Engineer

Civil Maintenance

14 | P a g e

Micro Organogram –DI- MSME-1 Section Structure

Jt. Director

Dy. Director

Planning

Credit/ Recovery

Asst. Director

Project Preparation & Information Facilitation

Venture Capital

Asst. Director

Publicity

Jt. Director

Survey

Statistics

Management

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Micro Organogram –MSME-2- Structure

Jt. DI

Asst. Director

Legal

Grievance Redressal

Dy. Director

Raw Materials

MSME

IPR and incentive administration

Asst. Director

Export

Single Window

NMCP

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Micro Organogram –MSME

Dy. Director

Food Processing

MSME-3- Structure

Jt. Director

Food Processing

Dy. Director

EDP, ESDP & MDP

Entrepreneurship Development

Policy

Asst. Director

BANI & PMEGP

Asst. Director

BANI & PMEGP

17 | P a g e

Micro Organogram –Ancillary & Downstream- Structure

Addl. DI- Large Industries

Dy. Director

Promotion of Large Industries

Vendor Development & Ancilllary, Downstream

Asst. Director

CSR

Technology Upgradation

Project Information

18 | P a g e

Micro Organogram –KVIB & Co

Asst. Director

PSI

KVIB & Co-op- Structure

Addl. Director (KVI)

Asst. Director

KHADI COIR SALT

Dy. Director(DRCS)

Co-op Matter

19 | P a g e

Micro Organogram for DIC

Cuttack, Sambalpur and Berhampur

Dy, Director (Class I

Supervision of DIC's

Single Window

for DIC –Regional Directorate

Cuttack, Sambalpur and Berhampur

Regional Director-Addl DI (Class-I-SG)

Dy, Director (Class I-Sr)

Single Window

Cluster Development

Asst. Director

(Class I

Large Industries-

CSR

Asst. Director

(Class I- Jr)

Ancillary & Downstream Development

20

| P

ag

e

DIC- Macro Structure- Allocation of Hierarchy based upon Importance and Activities:-

•D

ICA

ng

ul,

DIC

Jha

rsu

gu

da

,D

ICS

am

ba

lpu

r,D

ICK

ala

ha

nd

i,D

ICK

ora

pu

t,D

ICR

aig

ad

a,

DIC

Bo

lan

gir

,D

ICG

an

jam

,D

ICP

uri

,D

ICB

hu

ba

ne

swa

r,

DIC

Ro

urk

ela

,D

ICC

utt

ack

,D

ICK

ali

ng

an

ag

ar,

DIC

Ma

yu

rbh

an

j,D

ICK

eo

njh

ar,

DIC

Dh

en

kan

al,

DIC

Jag

ats

ing

hp

ur,

DIC

Ba

laso

re

•D

ICM

alk

an

gir

i,D

ICN

ow

ran

gp

ur,

DIC

Nu

ap

ad

a,

DIC

Ga

jap

ati

,D

ICS

on

ep

ur,

DIC

Bo

ud

h,

DIC

Ka

dh

am

al,

DIC

Na

yag

arh

,D

ICK

en

dra

pa

ra,

DIC

Bh

ad

rak

,D

ICB

arg

arh

,D

ICD

eo

ga

rh,

DIC

Su

nd

arg

arh

Jt.

Dir

ect

or

D

DI

(1)-

Cla

ss-

Ass

t

Dir

(2)

DIC

DIC

21 | P a g e

DIC- Micro- Structure

Jt. Director (Sr.

Branch)

Asst. Director

(Class I-JR)

Facilitation

Center

Entrepreneurship

Development

Self- Employment

Asst. Director

NMCP

Subsidy

Facilitation

MSME

Asst. Director

Cluster

Development

Estimation

Dy. Director

(Class 1- Sr)

KVIB

Co-op Matter

Salt

Khadi

Coir

22 | P a g e

Supporting Technical Staff at DIC & Directorate

• Blocks (314)- 1 IPO X 314

• DIC- 4 IPO + 2 Industrial Supervisor (As per the importance the manpower will be

allocated)

+ +

+ +

Supporting Technical Staff at Directorate

• Industrial Supervisor- 7 Nos.

• IPO- 10

Coir

Supervisor

Puri, Balasore, Ganjam,

Jagatsinghpur, Cuttack, Bhadrak

Directorate – (1

Development Officer +

2 Experts)

Salt

Supervisor

Balasore, Ganjam, Puri Directorate – (1

Development Officer)

Executive Summary E S F R -STRUCTURING OF DIC ... - ni-msme › nimsme_hindi › ranzo › uploads... · (An organisation of the Ministry of MSME, Yousufguda, Hyderabad Phone: +91-40

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