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.