An enterprising person expects uninterrupted supply of capital while setting up and running the industry. Even modernization of industry requires capital. Keeping this demand in mind, various policies have been formulated at central and state government levels and financial institutions have been formed to provide capital.
Public sector banks in India generally do the job of providing capital. Banks provide capital through lending to industrialists by devising various mechanisms.
Following are the names of some of the public sector organizations that provide capital -
1. STATE BANK OF INDIA
(i) Working Capital Loan
(ii) Project Loan
(iii) Short Term Loan
(iv) Long Term Loan
(ii) Project Loan
(iii) Short Term Loan
(iv) Long Term Loan
2. SMALL INDUSTRIES DEVELOPMENT ORGANIZATION - SIDO
Small Industries Development Corporation was formed to ensure uninterrupted supply of capital to small industries. Its main function is -
(a) Providing advice to the Government for the expansion and development of small businesses.
(b) Periodically collect all the information related to small scale industries and decide the next action strategy. From the collected data to guide the development progress in small scale industries and inform the government accordingly.
(c) Liaison of small business functions between Central Ministries, State Governments, Financial
Institutions and Planning Commission.
(d) Integrating activities of small industries with large and heavy industries.
(e) Providing multi-disciplinary training to increase the efficiency of workers engaged in small-scale industries.
3. NATIONAL SMALL INDUSTRIES CORPORATION-NSIC
Formed for overall development of small scale industries at national level. Technical services and consultancy are provided to the small scale industrialists through several extension centers of NSIC. Also provides consultancy services in various laboratories for testing of raw materials used and manufactured products in small scale industries, prevention of wastage of electricity and environmental pollution control. NSIC also undertakes training for upskilling of workers engaged in small scale industries.
4. STATE FINANCIAL CORPORATION-SFC
State Financial Corporations are formed by the State Government to provide financial assistance to small scale industries. A few examples of the things that fall into this financial assistance are –
(ii) Equipment Finance
(iii) Working capital loan
(iv) Financial support for marketing of products (Finance for Marketing Activities) etc.
The West Bengal State Financial Corporation or WBSFC for short has been formed to perform similar functions in West Bengal.
5. SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA-SIDBI
SIDBI was formed in 1990. The projects or schemes that SIDBI has for the development of small scale industries are -
(i) Direct Assistance Scheme
(ii) Indirect Assistance Scheme
(iii) Promotional and Development Scheme
(iv) Technology Development Scheme
(v) Modernization Fund Scheme
(vi) Mahila Unnayan Nidhi-MUN etc..
6. NABARD - NATIONAL BANK FOR AGRICULTURAL AND RURAL DEVELOPMENT
NABARD was formed to promote trade in agricultural products. There is a large market for production and marketing of agro-based products along with production of agricultural products in rural areas. If this market can be managed properly, the rural industries will grow significantly and the people living in the rural areas will get economic growth. NABARD was formed to provide financial support for the growth of commodity based products.
