Small Industries Development Organization


The Small & Medium Enterprises (SME) sector is one of the fastest growing industrial sectors all over the world.  Many countries of the world have established a SME Development Agency (SMEDA) as the nodal agency to coordinate and oversee all Government interventions in respect of the development of this sector.  In the case of India, though a separate medium sector is not defined, the Office of Development Commissioner (Small Scale Industries) also known as Small Industries Development Organisation (SIDO) functions as the nodal Development Agency for small industries.  SIDO functions under the Ministry of SSI (Ministry of Small Scale Industries).


SIDO operates a number of schemes for the SSI sector. At a glance these are:-
    1. Credit Linked Capital Subsidy Scheme for Technology Upgradation - Capital subsidy @ 12% upto Rs. 4.8 lakhs on loans taken for technology upgradation - for individual SSIs.

    2. Credit Guarantee Scheme - Collateral free loans upto a limit of Rs.25 lakhs - for individual SSIs.

    3. ISO 9000/ISO 14001 Certification Reimbursement Scheme - Incentive Scheme of Reimbursement of expenses for acquiring Quality Management System (QMS) ISO 9000 certification/environment management (EMS) ISO 14001 certification to the extent of 75% or Rs.75,000/- whichever is lower.
      - For individual SISIs/Ancillary/tiny/SSSBE units

    4. Participation in International Fairs - Full subsidy on space rent and shipment of exhibits of SSI units - for individual SSIs


    5. Purchase and Price Preference Policy - This is administered through the Single Point Registration Scheme of NSIC. Under this, 358 items are reserved for exclusive purchase from SSI by Central Government. Other facilities include tender documents free of cost, exemption from earnest money and security deposit and 15% price preference in Central Government purchases - for individual SSIs


    6. Prime Minister's Rozgar Yojana-PMRY (Scheme of Ministry of ARI) - Project limit upto Rs. 1 lakh for business and Rs.2.00 lakhs for other activities, subsidy and margin money upto 20% of project with balance as loan. Subsidy for NE twice that of rest of India - for entrepreneurs. SSIs

    7. Small Industry Cluster Development Programme - For promoting technology upgradation in clusters for a group of SSI units of one industry.

    8. Integrated Infrastructure Development (IID Scheme) - Assistance upto 40% or Rs.2.00 crores, whichever is less for setting up industrial estates for SSI units. For NE, assistance is 80% or Rs.4.00 crores - for State Governments/industry associations/ NGOs.

    9. Mini Tool Rooms - Assistance upto 90% or Rs.9.00 crores, whichever is less for setting up new Mini Tool Rooms. For upgradation of existing Tool Rooms, assistance is 75% or Rs.7.5 crores - for State Governments.

    10. Testing Centres - Assistance upto a 50% or Rs.50 lakhs, whichever is less for setting up Testing Centres - for industry associations.

    11. Sub-Contracting Exchanges - One time grant for procurement of hardware and thereafter matching grant on tapering basis at 50%, 30% and 10% of running expenses, not exceeding Rs. 1.25 lakhs, Rs. 0.75 lakhs and Rs. 0.25 lakhs respectively during the initial three years, subject to a ceiling of Rs. 1.57 lakhs per exchange - for industry associations.

    12. SSI MDA - The scheme offers funding upto 90% in respect of to and fro air fare for participation by SSI Entrepreneurs in overseas fairs/trade delegations. The scheme also provide for funding for producing publicity material (upto 25% of costs) Sector specific studies (upto Rs. 2 lakhs) and for contesting anti-dumping cases (50% upto Rs. 1 lakh) - for individual SSIs & Associations.

    13. Assistance to Entrepreneurship Development Institutes - For strengthening training infrastructure in EDIs, assistance upto 50% or Rs. 50 lakhs whichever is less - for State Governments.

    14. Scheme of Micro Finance Programme