District Industries Centres in Tamilnadu

in India plays a crucial role in providing mass employment opportunities to unemployed youth. Also helps in industrialising the rural and backward areas in the country by reducing the regional differences and ensuring the uniform distribution of national wealth and profits. The Ministry of MSME, Government of India, to encourage the Entrepreneurial Development in the rural parts of India, initiated the District Industries Centre (DIC) programme as a centrally sponsored scheme. The DICs act as a nucleus for the promotion and development of cottage, small and village industries in selected districts. The benefits disbursed by the Central and State Government under the incentive schemes such as Prime Minister’s Employment Generation Programme (PMEGP),

and New Entrepreneur-Cum-Enterprise Development Scheme (NEEDS) are implemented effectively in every States through the DICs.

Objectives of DIC

The core purpose for the functioning of DIC is to render support with all the necessary financial and organisational activities and flourish the

. The objectives include,

• To spot the new and potential entrepreneurs and render assistance for them to kick start their ventures.
• To extend financial and organisational support to strengthen the rural and cottage industries.
• To improve the efforts of industrialisation in all rural areas.
• Generate more employment opportunities for the people.
• To centralise all the procedures required to start ventures by the entrepreneurs anew and reduce their time and efforts obligatory to acquire permissions, licenses, registrations, incentives etc.
• To ensure that all the benefits and schemes offered by the Central Government reach the entrepreneurs appropriately.
• To reduce the industrial and economic imbalance in the country and obtain its equality in every district.
• To strengthen the rural industrialisation and enhance the development of handicrafts.
• To promote export and marketing activities in the Districts through Export Guidance Cell available in the DICs.
• Provide financial assistance to the Industrial Co-operative Societies through the TAICO and other financial institutions.
• To endorse awards to MSMEs and artisans offered by the State and Central Government.

Activities of DIC

The general activities of the DICs include,

• Exploring the feasible economic opportunities
• Providing Research, training and Education to the new and existing entrepreneurs
• Offering the credit facilities to the latest and obstructed projects/units
• Working towards the development of cottage industries
• Providing raw materials and Plant & Machinery assistance to the micro, small and medium ventures
• Improving the economic growth by offering Marketing Assistance in liaison with the State Government

Administration & Monitoring of DIC

There are currently 31 DICs functioning in Tamil Nadu which is headed by the General Manager in the corresponding Districts. The Regional Joint Director supervises the functioning of the DICs in the Chennai District. The Project Manager, Manager (Credit), Manager (Economic Investigation), Manager (Village Administration) and an office Superintendent supports the General Manager in the functioning of the DICs. The Principal Secretary/Industries Commissioner & Director of Industries & Commerce is the responsible body to monitor the functioning and performance of the DICs. The committee assesses the periodical report submitted by the General Manager to appraise the performance and assist DICs in case of any difficulties in the implementation of schemes.

Implementation of Schemes

The Tamil Nadu Government has implemented several incentives, and self-employment schemes for the MSMEs in the State through DICs and they are:

1. Subsidy schemes for micro-manufacturing enterprises
2. Subsidy schemes for SMEs establishing in 251 Industrially Backward Blocks
3. Subsidy schemes for Agro-based Small and Medium manufacturing enterprises established in all the 385 blocks of the State
4. Special Capital Subsidy for Thrust Sector Enterprises
5. Generator Subsidy
6. Back-ended Interest Subsidy and other self-employment schemes such as PMEGP, NEEDS and UYEGP

Operations of the DIC

The DICs in the State of Tamil Nadu has been carrying out the following operations since its establishment,

• Implementation of Quality Control
• Generating awareness among the consumers in Tamil Nadu regarding the usage of quality electrical products through the enforcement of Quality Control Order Centre for Domestic Electrical Appliances.
• The authorities ensure that the MSMEs manufacture, store, distribute and sell particular items without the recognition of Bureau of Indian Standard marking.

Enforcement of Steel and Steel Products Orders

• Implementation of Steel and Steel Products (Quality Control) Order, 2012 to make sure that the quality products reach the consumers in the State.
• The order prohibits the manufacturers from the production, storage and distribution of Steel and Steel products that are not mentioned in the norms of the Bureau of Indian Standards.

Restoration of non-operative MSMEs

• The Ministry of Micro, Small and Medium Enterprises, Government of India, formed ‘Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises’ and gazetted the notification on May 29, 2015.
• The Notification is to accelerate the funding process for the MSMEs and assist them in promoting and developing their business.
• The duo RBI and the Ministry of MSME brought in the modifications to make it compatible with the already functioning regulatory guidelines on ’ released to Banks by RBI.
• The Empowered Committee for MSMEs has been constituted to restore the non-functional MSMEs as per the framework of RBI.
• The State Level Rehabilitation Committee (SLRC) has been established under the Chairmanship of the Secretary of Government, MSME, to analyse the cause of sickness of MSMEs and provide advisory measures for their restoration.
• A quarterly review meeting is conducted to oversee the enforcement of the Rehabilitation of non-functional MSMEs in the State.

Establishment of Micro Small Enterprises Facilitation Council

• As per the advise from the Ministry of MSME and Micro, Small and Medium Enterprises Development Act, 2006, the state governments can establish facilitation councils.
  • Government of Tamil Nadu have established four Regional Micro Small Facilitation Council in the state.
  • The Council which are located at Chennai, Tiruchirapalli, Madurai and Coimbatore aims at encouraging fast settlement of unpaid balances of the goods distributed to major industrial units.

Eligibility Criteria

The eligibility conditions of the beneficiaries are as follows:

• The entrepreneur willing to register in the DICs should be of or above the age of 18 years.
• The maximum value of the project should not exceed Rs.25 Lakhs in case of manufacturing sectors and Rs.10 Lakhs in case of service sectors.
• If the project cost exceeds the mentioned ceiling, then the remaining amount will be offered as a term Bank loan to the beneficiaries.
• For setting up of projects/units under the PMEGP Scheme, no separate assistance will be provided.
• Beneficiaries who are setting up the project/unit for Rs.10 Lakhs and above in case of the manufacturing sector and Rs.5 Lakhs and above in case service sectors should possess a minimum educational qualification of class 8.
• Self Help Groups (SHGs), including the ones belonging to the BPL category, are eligible for the registration.
• The Council which are located at Chennai, Tiruchirapalli, Madurai and Coimbatore aims at encouraging fast settlement of unpaid balances of the goods distributed to major industrial units.

MSME entrepreneurs can approach below addresses for further details:

• Head Office, Department Of Industries & Commerce, SIDCO Corporate Office Building, Guindy Industrial Estate, Chennai 600032.

• General Manager, District Industries Centre, 2, Raja Street, Coimbatore-641001.
• Phone: 0422-2391678, 2397311

• General Manager, District Industries Centre, Collectorate Compound, Trichirappalli-620001.
• Phone: 0431-2460823

• General Manager, District Industries Centre, Alagar Koil Road, Madurai-625002.
• Phone: 0452-2537621

The contact details of other districts can be accessed below: