What No one Ever Tells You about Starting Your Business-Facilities and Procedures for Entrepreneurs ( ) ( Best Seller ) ( ) ( ) ( )
Author NIIR Board ISBN 8178330474
Code ENI100 Format Paperback
Price: Rs 400   400 US$ 11   11
Pages: 306 Published 2003
Publisher Asia Pacific Business Press Inc.
Usually Ships within 5 days

Hundreds of thousands of people start their own businesses every year, and untold more dream about the possibility of becoming their own bosses. While entrepreneurship has its many potential rewards, it also carries unique challenges. To start a business of your own you need to understand the environment to set up an enterprise of you own. Starting a business involves planning, making key financial decisions and completing a series of legal activities. To run a successful business, you need to learn all about your existing and potential customers, your competitors and the economic conditions of your market place. In both developed and developing countries, the Government is turning to small and medium scale industries and entrepreneurs, as a means of economic development and a veritable means of solving problems. It is a seedbed of innovations, inventions and employment. The Government has announced series of steps to promote industrial development by way of rationalization of the policies to encourage the new entrepreneurs as well as existing units. Entrepreneurship helps in the development of nation. A successful entrepreneur not only creates employment for himself but for hundreds. Deciding on a right project can lead you to the road to success. Entrepreneurship helps in the development of nation. A successful entrepreneur not only creates employment for himself but for hundreds. Deciding on a right project can lead you to the road to success.

Startup India Stand up

Our Prime Minister unveiled a 19-point action plan for start-up enterprises in India. Highlighting the importance of the Standup India Scheme, Hon’ble Prime minister said that the job seeker has to become a job creator. Prime Minister announced that the initiative envisages loans to at least two aspiring entrepreneurs from the Scheduled Castes, Scheduled Tribes, and Women categories. It was also announced that the loan shall be in the ten lakh to one crore rupee range. 

A startup India hub will be created as a single point of contact for the entire startup ecosystem to enable knowledge exchange and access to funding. Startup India campaign is based on an action plan aimed at promoting bank financing for start-up ventures to boost entrepreneurship and encourage startups with jobs creation. 

Startup India is a flagship initiative of the Government of India, intended to build a strong ecosystem for nurturing innovation and Startups in the country. This will drive sustainable economic growth and generate large scale employment opportunities. The Government, through this initiative aims to empower Startups to grow through innovation and design.


What is Startup India offering to the Entrepreneurs?

Stand up India backed up by Department of Financial Services (DFS) intents to bring up Women and SC/ST entrepreneurs. They have planned to support 2.5 lakh borrowers with Bank loans (with at least 2 borrowers in both the category per branch) which can be returned up to seven years.

PM announced that “There will be no income tax on startups’ profits for three years”

PM plans to reduce the involvement of state government in the startups so that entrepreneurs can enjoy freedom.


No tax would be charged on any startup up to three years from the day of its establishment once it has been approved by Incubator.


This major contents of the book are with small scale industry definition and incentives, significance of SSI sector, institutional network to assist the small scale industry, for example national level institutions, Small Industries Development Organisation (SIDCO), National Small Industries Corporation (NSIC), state level institutions, rural entrepreneurship growth and potentials, means of finance (share capital, reserves and surplus, retained earnings), district industries centre for rural enterprise development, etc.
This book is a unique guideline for those who are looking for starting a new business and wants to start some industry with the help of different concerned departments. It also covers the export guidelines. We are confident that this book will prove to be important guidelines for new entrepreneurs.


Significance of SSI Sector 
Definition of Small Scale and Ancillary Industry 
Incentives and Facilities for SSI Sector 
Assistance to SSI by SIDBI 
Streamlining of Procedures for Direct Assistance 
Scheme for Development of Industrial Infrastructure 
Raw Material Procurement for SSI Sector 
Marketing Support for Small Scale Industries 
Marketing Assistance Programmes of NSIC 
Dissemination of Technology Information to Small Industries 
Technology Bureau for Small Enterprise
TBSE- A Nurve Centre for Technology 
Range of Services
Technology Information 
Match Making 
Finance Syndication 
Export Promotion 
Support Services
Export Oriented Unit (EOU) 
Small Scale Services & Business Enterprises (SSSBE's)
List of Activities not Recognize as SSSBE's
Environmental Restrictions


National Level Institutions
Small Industries Development Organisation (SIDCO)
National Small Industries Corporation (NSIC)
Development Commissioner (Small Scale Industries)
State Level Institutions
State Financial Corporations (SFCs)
National Co-operative Development Corporation (NCDC)
Technical Consultancy Organizations (TCOs)
District Industries Centres (DICs)
State Industrial Development Corporations (SIDCs)
State Small Industries Development Corporations (SSIDCs)
Financial Institutions
Small Industries Development Bank of India (SIDBI)
Industrial Development Bank of India (IDBI)
Industrial credit and Investment Corporation of India (ICICI)
Industrial Financial Corporation of India (IFCI)
National Bank of Agricultural and Rural Development (NABARD)
Commercial Banks
Export-Import Bank of India (Exim Bank)


Studies on Rural Entrepreneurship
Rural Entrepreneurship in India
Rural Entrepreneurship in Tamilnadu
Rural Entrepreneurship in Dindigul District-Growth and Potentials
Socio-economic Status of Sample Entrepreneurs
Income and Employment Potentials
Problems for Rural Entrepreneurship
Suggestions for Promotion of Rural Entrepreneurship


Co-operative Society
Co-operative Movement and Handloom Co-operative Societies
A Study on Handloom Weavers Cooperative Society
Methodology-Design of the Study
Co-operative Weavers
Industrial Co-operative Weavers
Evaluation of Handloom Weavers' Co-operative Societies
Registration of the Co-operative Society
Management Executives
Organisational Structure of Co-operative Society
Characteristics of Weavers' Co-operative Society
Objectives of a Weavers' Co-operative Society
(a) Purchase of Yarn
(b) Dyeing Process
(c) Loosening, Twisting, Rewinding and Warping
(d) Dressing and Sizing
(e) Piecing
(f) Fixing the Warp with the Loom and Weaving
Functions of Weavers' Co-operative Society in Pudur Block
Functions of Industrial Weavers' Co-operative Society in Pudur Block
Socio-Economic Status of Weaver-Member of   the Co-operative Societies in Pudur Block
Employment Level and Wage
Annual Household Income
Expenditure Pattern of the Weavers
Savings of the Members of the Co-operatives
Problems of Weavers.


Literacy Campaign in Madurai District
Arivoli Mahalir Iyyakkam in Madurai Distict
Arivoli Mahalir Iyyakkam after DWCRA Assistance
Rural Enterprise Development by AMI-Few Case Studies
Fair Price Shops
Production of Soap Poder, PTC
Canteen by Women Group at BDO Office
Milk Depot


What is Term Finance ?
Economic Viability
Market Survey
Technical Feasibility
Appropriate Technology
Promoters' Technical Competence
Acquisition of Fixed Assets and Tying up of Raw Materials
Financial Appraisal
Cost of Project
Means of Finance 
1. Share Capital
2. Reserves and Surplus
3. Retained Earnings
4. Long Term Borrowings
5. Deferred Payments
6. Other Resources
Debt-Service Coverage Ratio (DSCR)
Internal Rate of Return
Exchange Rate of Deposit (ER) or Domestic Resources Cost (DRC)
Working Capital
Permanent and Variable Working Capital
Financing the Regular Working Capital
Financing Variable Working Capital
Factors Determining Working Capital Requirements
a) Nature of Business
b) Production Policies and Seasonal Fluctuations
c) Manufacturing Process
d) Turn-Over of Circulating Capital
e) Growth and Expansion of Industry
f) Business Cycle Fluctuations
g) Term of Purchase and Sale
h) Dividend Policy
i) Other Factors
Sources of Funds for Working Capital
Public Deposit
Ceiling of the Rate of Interest on Deposits
Ceiling on Brokerage
Maintenance of Liquidity of Assets
Retirement of Current Liabilities below Book Value
Trade Credit, Bank Overdraft and Inter-company Loans
Bank Overdrafts
Cash Credit from Bank
Inter Company Loans


Complete Tax Holiday
Five-Year Tax Holiday for New 100% Export Oriented Units Permissible Deductions from Gross Total Income
Income from Newly Established Industrial Undertakings or Hotel Business in Backward Areas [Sec. 80HH]
Income from Newly Established Small Scale Industrial in Certain Areas [Sec. 80HHA]
Deduction in Respect of Profits and Gains from Projects Outside India [Sec.80HHB]
Deduction in Respect of Profits and Gains from Housing Projects in India [Sec. 80HHBA]
Deduction in Respect of Export Turnover [80 HHC]
Deduction in Respect of Earnings in Convertibel Foreign Exchange [Sec. 80HHD ]
Deduction for Export of Computer Software [Sec. 80HHE]
Deduction in Respect of Profits and Gains from Industrial Undertakings or a Ship or the Business of a Hotel 
Amount of Deduction :
Deduction in Respect of Profits and Gains from Business of Collecting and Processing of Bio-Degradable Waste [Sec. 80JJA]
Deduction in Respect of Employment of New Regular Workmen
[Sec. 80JJAA]
Deduction in Respect of Interest on Bank Deposits, Certain Securities etc.[Sec. 80L]
Deduction in Respect of Royalties etc. from Certain Foreign Enterprises [Sec. 80-o]


Permanent and Variable Working Capital
Financing the Regular Working Capital
Financing Variable Working Capital
Factors Determining Working Capital Requirements
a) Nature of Business
b) Production Policies and Seasonal Fluctuation
c) Manufacturing Process
d) Turn Over of Circulating Capital
Growth and Expansion of Industry
Business Cycle Fluctuations
Terms of Purchase and Sale 
Dividend Policy 
Other Factors
Source of Funds for Working Capital
Public Deposit
Ceiling of the Rate of Interest on Deposits
Ceiling on Brokerage
Maintenance of Liquidity of Assets
Retirement of Current Liabilities below Book Value
Trade Credit, Bank Overdraft and Inter-Company Loans :
Bank Overdrafts 
Cash Credit from Bank
Inter Company Loans


Performance of Provisional and Permanent 
Registration Scheme
Performance of Cottage and Handicrafts Industry
Registration Scheme
Self-Employment for Educated Unemployed Youth Scheme (SEEUY)
State Capital Investments Subsidy Scheme
Low Tension Power Tariff and Generator Subsidy Scheme
Interest Free Sales Tax Deferral and Waiver Scheme
Problems of the DIC in Dindigul District
1. Poor Contact with the Beneficiaries
2. Inadequacy of Technical Staff
3. Proliferation of Supporting Institutions
4. Shortage of Staff
5. Delay in Sanctioning Approvals
6. Training Opportunities
7. Restrictive Bank Credit
8. Inadequate Transport Facilities


Small Industries Development Bank of India (SIDBI)
Sphere of Business
Schemes of Assistance
Indirect Assistance
Direct Assistance
Credit Rating for SSI with the help of SIDBI
SIDBI Provides Foreign Currency Loans
SIDBI's Venture Capital Fund Provides Assistance
Lines of Credit are Established by SIDBI
Development and Support Services by SIDBI
Technology Upgradation
Programmes Implemented for Enterprise Promotion
Programmes for Human Resource Development of the SSIs
Programmes for Technology Upgradation
Institution Building
Special Purpose Funds in SIDBI
Rural Industries Programme by SIDBI
SIDBI's Various other Schemes in Details
Promotors' Contribution
Interest and Discount Rate Structure
Scheme of Pre-shipment Credit in Foreign Currency (PCFC)
Choice of Currency
Minimum Amount
Scheme for Pre-shipment Credit in Rupees (PCR)
Scheme of Export Bills Financing in Foreign Currency (EBF)
Scheme of Foreign Letter of Credit (FLCs)
Scheme of Post-Shipment Credit in Rupees (PSCR)
Small Industries Development Bank of India, Addresses of Offices
National Bank for Agriculture and Rural Development (NABARD)
Major Activities
Credit activities
1. Short-Term Refinance Eligible Institutions
2. Medium and Long-term Refinances Eligible Institutions
3. Conversion & Rescheduling of Refinance
Criteria for Refinance
Ultimate Beneficiaries
Quantum of Refinance
Rates of Interest
Margin Money
Direct Finance
Special Focus
Removal Regional/Sectoral Imbalance
Monitoring Implementation of Projects
High-tech and Export Oriented Projects
Development Activities
Institutional Development
District Development Offices
Research and Development Fund
Soft Loan Assistance Fund
Agricultural and Rural Enterprises Incubation Fund (AREIF)
Rural Promotion Corpus Fund (RPCF)
Credit and Financial Services Fund (CFSF)
Linking SHGs to Credit Institutions
Regulatory Activities
Other Funds
International Borrowings (generally through GOI)
Eligible Institutions
Lending Terms & Conditions
Mode of Refinance
Automatic Refinance Facilities
Schematic Refinance Schemes Under NFS Schemes with Prior Sanction
Production Credit Facilities
Application for Sanction/Release of Refinance Under Automatic Refinance Facility
Promotional/Development Programmes under NFS
Training-cum-Production Centre (TPC)
Target Group
Eligible Institutions
Nature of Assistance
Rural Entrepreneurship Development Programme (REDP)
Target Group
Eligible Institutions
Nature of Assistance
Training of and by Master Craftsmen
Target Group
Eligible Institutions
Target Group
Nature of Schemes
Artisan Guilds
Mother unit
Common Service Centres
Agriculture and Rural Enterprises Incubation Fund (AREIF) Venture Capital Fund
Introduction & Objectives
Assistance to Rural Women in Non-Farm Development (ARWIND)
Introduction & Salient Features etc.
Pilot Project for Linking Self-Help Groups (SHGs) with Banks
Technical, Monitoring & Evaluation Cells (TME Cells)
District Rural Industries Project (DRIP)
Annexure -I Spectrum of Small, Cottage, Tiny and Village Industries
Annexure - II Illustrative List of Small Scale Service/ Business Enterprises
Annexure -III Illustrative List of Activities which are not recognised as Small Scale Industry/Business Enterprises (SSSBE's)
National Small Industries Corporation (NSIC)
Marketing Assistance for SSI Products
Scheme for ISO-9000 Certification
Gujarat Industrial & Investment Corporation (GIIC)
Innovative Strategies
Financial Services
Guidelines of Different Scheme
Term Loan under the Normal Refinance Scheme
Other Schemes for Existing Units
Equipment Refinance Loans
Corporate Loans
Hire Purchase
Bills Discounting/Rediscounting Schemes
Eligibility Criteria for Leasing/Hire Purchase and Bills Discounting
Line of Credit to NBFCs
Loan Against Asset Securitisation
Merchant Banking
Joint and Associate Sector Projects 




National Level Institutions

The Small Industries Development Organisation (SIDCO) and the National Small Industries Corporation (NSIC) under the Ministry of Industry are the chief central institutions assisting the small scale sector.

Small Industries Development Organisation (SIDCO)

Established in 1954, the SIDCO acts as a policy formulating, co-ordinating and monitoring agency for development of small scale industries. It co-ordinates the work related to the development of small scale industries on all India basis by -


  • Evolving all India policy and programme for the development of the SSI Sector.
  • Co-ordinating the policies and programmes of various State Governments.
  • Providing liaison between different states as also between the States and Central Ministers, Planning Commission, Reserve Bank of India and Financial Institutions;
  • Co-ordinating the programme for the District Industries Centres and development of industrial estates and ancillaries all over the country.
  • [/ul]

    Assistance is also provided by the SIDCO to the State Governments in formulating the schemes within the overall plan allocations and objectives, Central assistance to the Industrial Development with the assistance of SIDCO.

    The important function of the SIDCO is, however, to suggest a pattern of small scale industrial development for the country as a whole. This involves responsibilities for indicating the lines of manufacture which are suitable for the small scale sector and give to it all assistance in the form of promotion, procurement of raw materials and machinery and other technical advice from time to time. The SIDCO provides a wide range of inspection, services through its network of Small Institutes, Branch Institutes, Extension Centres, Regional Testing Centres, and other institutions at the field level.

    National Small Industries Corporation (NSIC)

    It was set up in February 1955 with an authorized capital of Rs. 20 lacs which was completely subscribed by the Government of India. Its main objective is to promote the growth of small scale industries. Its activities are:


  • To supply indigenous and imported machinery and equipment to existing and prospective entrepreneurs on hire-purchase basis on easy terms.
  • To provide (internal and export) marketing support to small scale units through the Government Purchase Programme.
  • To develop prototype of machines for commercial exploitation by small units.
  • To provide training in various technical trades through its Prototype Development and Training Centres.
  • To secure Government orders for products of small units and to provide financial, technical and other assistance to them to fulfil such orders.
  • To secure co-ordination between small scale and large scale units so as to enable the former to act as ancillaries to large units.
  • To underwrite and guarantee loans to small units from banks and their institutions.
  • To supply raw materials, spares and components to small units.
  • [/ol]

    Development Commissioner (Small Scale Industries)

    The office of the DC (SSI) headed by the Development commissioner (Small Scale Industries) and Ex-officio Additional Secretary is an attached office of the Ministry of Industry. This is an apex body and is the nodal agency for formulating, co-ordinating and monitoring the policies and programmes for promotion and development of small scale industries in the country. It maintains close liaison with the Central Ministers, Planning Commission, State Governments, Financial Institutions, Voluntary Organisations and other Organisations concerned with the development of small industries. It provides a comprehensive range of facilities and services including consultancy in techno-economic, managerial aspects, training, common processing and testing facilities, tooling facilities and marketing assistance etc. to small scales units. Office of the DC (SSI) provides these services through a network of 7 small Industries Services Institutes, 31 branch institutes, 37 extension centres, 4 regional testing centres, 1 product and process development centre, 2 footwear training centres and 4 production centres. The institutional network is now being extended by establishing 12 new branch institutes in backward areas and 18 field testing stations in areas of concentration of specific types of industries. There are also a few specified institutions like Central Institute of Tool Design. Hyderabad, Central Tool Room and Training Centres at Ludhiana and Calcutta, Central Institute of Hand tools, Jalandhar, Institute for Design of Electrical Measuring instruments (IDEMI), Bombay, integrated Training Centre, Nilkheri, National Institute of Small Industries Extension Training (NISET), Hyderabad, National Institute for Entrepreneurship and Small Business Development (NIESBUD), New Delhi which provide training in management and technical services in specified fields.

    State Level Institutions

    State Financial Corporations (SFCs)

    There are 18 SFCs at present. They have been set up under State Financial corporations Act 1951, by the respective State Governments as regional institutions. They play an effective role in the development of small and medium enterprises and in bringing about regionally balanced economic growth. They aim at wider dispersion of small and medium units within each state. They meet term credit needs of such units. The types of assistance provided by them is generally similar to those of IFCI, IDBI, and so on.

    The activities of SFCs so far have been under the overall control and supervision of the IDBI and RBI. Henceforth, SIDBI and RBI will perform of overseeing function. The resources of SFCs come from share capital, reserves, bond issues, loans from the RBI, IDBI, and State Government; refinance from the RBI and IDBI; fixed deposits from the State Governments, local authorities and the public; assistance from IDA and foreign currency line of credit from the IDBI.

    National Co-operative Development Corporation (NCDC)

    It was set up in March 1963 as a development finance institution for agricultural co-operative sector. Its functions are :


  • To implement various programmes in the co-operative sector.
  • To provide financial assistance in the form of loans and subsidy to co-operatives under various schemes.
  • To promote, strengthen, and develop farmers' co-operative in order to increase production and productivity
  • To plan and promote programmes relating to production, processing, marketing, storage, export and import of agricultural goods through co-operatives.
  • To help in the implementation of programmes meant for weaker sections of society.
  • [/ol]

    It handles programmes in the areas of poultry, fisheries, minor forest product, handlooms, coir, sericulture, and dairy farming. It acts as an on-lending agency for implementing projects aided by IDA and European Economic Community. As a part of this, it has already implemented certain projects in the areas of storage, cold storage, soyabean processing, oilseeds, cotton processing, mustard seeds, and coconut development and so on. It has started preparing schemes for integrated co-operative development through cooperative in agricultural, allied, and non-farm sectors.

    One of its special areas of work is to formulate and implement programmes for distribution of consumer articles in rural areas.

    Technical Consultancy Organizations (TCOs)

    There are 17 TCOs in India, at present. The first one was set up in 1972 in Kerala. All of them have been set up in the 1970s and early 1980s. The IDBI, IFCI, ICICI, State level financial institutions and banks have worked together to create a network of these institutions. They are state level organizations and their aim is to provide under a single roof, a package of consultancy services needed in all stages of the project cycle. They provide appropriate, inexpensive and decentalized consultancy services to new and existing medium and small industries, the state level business corporations, State Governments, state level financial institutions, and banks.

    TCOs conduct industrial potential surveys, prepare project profiles and feasibility studies. Evaluate projects, conduct entrepreneurship development programmes, provide technical, management and administrative assistance. Take up technical upgradation and rehabilitation programmes, accept turn-key assignments to set up small and medium scale project; help entrepreneurs in project, conception, formulation, and implementation, covering technical, marketing, commercial, financial and economic aspects. They have entered the fields of technology transfer, industrial development in rural areas, merchant banking, and retainer consultancy services. To develop backward areas and non-industry districts through IRDP is now a special area of activity of TCOs. They have started adopting blocks for this purpose.

    District Industries Centres (DICs)

    To give further boost to development of small & village industries, a District Industries Centre (DIC) has been established in every district as a part of a centrally sponsored scheme. The role of DIC is to collect information about the availability of raw material and other resources and for making arrangement for machinery and equipments, marketing, quality control, research and credit facilities etc., for the small units to be set up in the district. It is also sponsoring authority for directing application of small units of commercial banks for sanctioning of credit facilities. Increasing role of DIC has been assigned for implementation of yet another centrally sponsored scheme, named as Scheme of Self-employment of Educated Unemployed Youth (SEEUY). A task force for identification of beneficiaries and implementation of the above scheme has been set up each 'District Industries Centre'.

    State Industrial Development Corporations (SIDCs)

    There are 26 SIDCs, today. The beginning for setting them up was made when the first SIDC was established in Bihar in 1960. Most of them have been set up during the 1960s and early 1970s. They are wholly owned by the respective State Governments. Some of them are set up under State Acts as statutory autonomous corporations (viz., Maharashtra and Gujarat), while others are either public or private limited companies under the companies Act, 1956. Their main aims are to promote rapid industrialization and to bring about balanced regional development by assisting backward areas, in particular. They give assistance to medium. large, and small units.

    [ ][ ][ ]

    Their main functions are :


  • To provide risk capital by way of equity participation and seed capital assistance.
  • To give term loans, guarantees, and lease finance.
  • To administer incentive schemes of the Central and State Governments.
  • To conduct industrial potential surveys, to entrepreneurs.
  • To develop industrial areas, sheds, and estates.
  • To set up industrial projects in the joint sector i.e., in partnership with private entrepreneurs or as wholly owned subsidiaries. Their resources come from the state governments, banks, bond issues, share capital, loans from the RBI and IDBI and so on.
  • [/ol]

    State Small Industries Development Corporations (SSIDCs)

    They have been established in various states under the Companies Act, 1956 with a view to developing small, tiny, and village industries in the respective States. They are engaged in producing and distributing scarce/imported raw materials, supplying machinery on hire purchase basis, constructing and managing industrial estates and related infrastructural facilities, providing management assistance, extending seed capital assistance, and providing marketing assistance.

    Financial Institutions

    Small Industries Development Bank of India (SIDBI)

    It was set up in October 1989 as a wholly owned subsidiary of IDBI. Its authorised capital is Rs. 250 crores with an enabling provision to increase it to Rs. 1000 crores. It is the Central or Apex or principal institution which will oversee, co-ordinate and further strengthen various arrangements for providing financial and non-official assistance to small scale industries.

    [ ][ ][ ]

    Its objective are :


  • To initiate steps for technological upgradation and modernization of existing units.
  • To expand channels for marketing of SSI sector products in India and abroad
  • To promote employment-oriented industries in Semi-urban areas and to check migration of population to big cities.
  • [/ol]

    It operates two funds : Small industries Development Fund and Small Industries Development assistance Fund. The operation of the former and of National Equity Fund which were earlier looked after by the IDBI will now be handled by the SIDBI. Its financial assistance will be channelled through the existing credit delivery system comprising NSIC, SFCs, SIDCs, SSIDCs, Commercial banks, co-operative banks, and RRBs. The total number of institutions eligible for assistance from SIDBI is 869. It would discount and rediscount bills arising from the sale of machinery to small units; extend seed capital/soft loan assistance through national Equity Fund and through seed capital schemes of specialized lending institutions; refinance loans; and provide services like factoring, leasing and so on.

    Industrial Development Bank of India (IDBI)

    It was set up as a wholly owned subsidiary of the RBI, in July 1964 by merging the Industrial refinance Corporation (IRC) which, in turn, was set up by the Government earlier in June 1958. In February 1976, the IDBI was delinked from the RBI and since then, it has become a separate and independent entity wholly owned by the Government. It is now the Central or Apex institution in the field of industrial finance. It functions as a development financing agency in its own right. In addition to its work of co-ordinating, supplementing, and monitoring the operations of other term-lending institutions in the country. Apart from providing direct assistance of the types supplied by IFCI and ICICI, it provides indirect assistance in the form of discounting/ rediscounting long-term bills/promissory notes, refinancing of loans given by SFCs banks, and subscribing to resources of notified financial institutions such as SFCs, IFCI, ICICI, IRBI, and so on. At the end of March 1990, there were 869 primary lending institutions which were eligible for refinancing facilities of the IDBI. It also takes up various promotional activities such as balanced development of regions, entrepreneurship development, technology development, and so on. The resources of the IDBI are more or less similar to those of the IFCI.

    Industrial credit and Investment Corporation of India (ICICI)

    It was set up in 1955 as a public company under the sponsorship of the Work Bank. It is a privately owned institution with no participation by the Government in its share capital, which is partly owned by the Indian private sector and partly by foreign institutions. The type of assistance and scope of activities of ICICI are more less similar to those of the IFCI. However, till a new years back, it was the only institution which was providing foreign currency loans, and even now, its foreign currency loans business is much greater than that of other financial institutions. It has pioneered the development of the IFS in many ways. It was one of the earliest organisations to start merchant services in India through its merchant banks division; it has developed the field of lease finance and installment sales; it has played an important role in setting up institutions, such as Over the Counter Exchange, TDICI, SCICI, CRISIL, and venture capital funds, through which it provides a variety of financial services.

    Its resources are in the form of share capital, initial interest-free loan by the government of India, advance in foreign currency by the World Bank, rupee loans by IDBI, borrowings from the RBI, lines of credit from the World Bank, bond issues in India and foreign capital markets, issues of shares to Indian Public, and reserves.

    Industrial Financial corporation of India (IFCI)

    This is the first term-financing institution which was set up in July 1948 by the Government of India with the objective of providing medium and long-term loans to large industrial concerns in the private sector. However, now the units from the co-operative, joint, and public sector also have been made eligible for its assistance. It provides direct rupee and foreign currency loans for setting up new industrial products and for expansion, diversification, renovation, and modernization of existing units. It also underwrites and directly subscribes to industrial securities, provides financial guarantees, merchant banking services, and lease finance.

    Its resources are in the form of loans from the RBI, share capital, retained earnings, repayment of loans, issue of bonds, loans from the borrowing in the international capital markets.

    It has introduced a number of financing and promotion schemes on its own; the latter include eight consultancy fee subsidy schemes, four interest subsidy schemes, and two entrepreneurship development schemes.

    Scope of Services


  • Management of Public issues of Securities
  • Project Conceptualization and other related services
  • Credit Syndication
  • Placement of Debt & Equity
  • Project Specific Services for Infrastructure Projects
  • Turnaround Strategies
  • Mergers & Amalgamation Strategy
  • PSU Disinvestment
  • Arrangements of ECB
  • [/ul]

    National Bank of Agricultural and Rural Development (NABARD)

    It was set up in July 1982 as a Central or apex institution for financing agricultural and rural sectors. Its paid-up capital of Rs. 100 crores is subscribed by the Governments and the RBI in equal amounts. It has taken over the functions of Agricultural Refinance and Development Corporation (ARDC) which, in turn, was set up in 1975 in the place of former Agricultural Refinance Corporation (ARC) which, in turn, was set up in July 1963.

    It oversees the entire rural credit system and to the extent, it has taken over a part of the job of RBI. It has also taken over refinancing function of the RBI relating to State Co-operative Banks and RRBs. It is a co-ordinating agency, in respect of agricultural and rural development activities/policies of the Central and State Governments, Planning commission, and other institutions. It undertakes inspection of cooperative banks the RRBs without prejudice to the powers of RBI. It aims at the prosperity of rural areas through integrated rural development.

    Towards this end, it provides credit for the development of agriculture, small scale industries, cottage and village industries, handicrafts and other rural crafts, and allied economic activities in rural areas. However, it is primarily a refinancing agency; it provides very little direct finance to final users.

    It provides term refinance assistance for the period up to 18 months to State Co-operative banks, commercial banks, RRBs and so on for a wide range of activities in the areas of production, trading, marketing and storage. It also gives long term loans (up to 25 years of maturity) to SCBs, SLDBs, RRBs, commercial banks, and other approved institutions for the purpose of making investment loans. It gives loans up to 20 years of maturity to the state governments, to enable them to subscribe to the share capital of co-operative credit societies. It sanctions refinance assistance under (IRDP). It also provides conservation or rescheduling facilities, in the event of natural calamities.

    Its resources comprise a line of credit from the RBI, loans from the Central Government, World Bank, IDA, and other multi-lateral and bi-lateral aid agencies, sales of bonds and debentures, direct-borrowings, deposits, gifts, grants, and so on. It has been associated with implementation of a number of projects with financial assistance from the World Bank and International Fund for Agricultural Development (IFAD).

    Commercial Banks

    Commercial banks continue to be the main source of finance for working capital even for small scale units. Banks also grant term loans to such units on a very large scale. As already stated, the financing pattern and appraising adopted by the banks are almost the same as adopted for other credit proposals. However, Reserve Banks has issued various guidelines to the banks exhorting them to have a liberal approach and ensure quick disposal of small projects within a time bound schedule.

    Export-Import Bank of India (Exim Bank)

    It was set up in January 1982 as a statutory corporation wholly owned by the Central Government. It grants direct loans in India and outside for the purpose of exports and import, refinances loans of banks and other notified financial institutions for the purposes of international trade, rediscounts usance export bills for banks, provides overseas investment finance for Indian companies towards their equity participation in joint ventures abroad, and guarantees, along with banks, obligations on behalf of project finance, and it undertakes development of merchant banking activities in relation to export-oriented industries. It thus, provides fund-based as well as non-fund based assistance in the foreign trade sector.

    Its sources of funds come from share capital, reserves, repayment of loans, Ioans from RBI and the Government, bond issues in the domestic and foreign capital markets, loans from international financial institutions, and so on.





    NIIR PROJECT CONSULTANCY SERVICES (NPCS) is a reliable name in the industrial world for offering integrated technical consultancy services. NPCS is manned by engineers, planners, specialists, financial experts, economic analysts and design specialists with extensive experience in the related industries.

    Our various services are: Detailed Project Report,  Business Plan for Manufacturing Plant, Start-up Ideas, Business Ideas for Entrepreneurs, Start up Business Opportunities, entrepreneurship projects, Successful Business Plan, Industry Trends, Market Research, Manufacturing Process, Machinery, Raw Materials, project report, Cost and Revenue, Pre-feasibility study for Profitable Manufacturing Business, Project Identification, Project Feasibility and Market Study, Identification of Profitable Industrial Project Opportunities, Business Opportunities, Investment Opportunities for Most Profitable Business in India, Manufacturing Business Ideas, Preparation of Project Profile, Pre-Investment and Pre-Feasibility Study, Market Research Study, Preparation of Techno-Economic Feasibility Report, Identification and Section of Plant, Process, Equipment, General Guidance, Startup Help, Technical and Commercial Counseling for setting up new industrial project and Most Profitable Small Scale Business.

    NPCS also publishes varies process technology, technical, reference, self employment and startup books, directory, business and industry database, bankable detailed project report, market research report on various industries, small scale industry and profit making business. Besides being used by manufacturers, industrialists and entrepreneurs, our publications are also used by professionals including project engineers, information services bureau, consultants and project consultancy firms as one of the input in their research.

    Our Detailed Project report aims at providing all the critical data required by any entrepreneur vying to venture into Project. While expanding a current business or while venturing into new business, entrepreneurs are often faced with the dilemma of zeroing in on a suitable product/line.


    And before diversifying/venturing into any product, wish to study the following aspects of the identified product:

    • Good Present/Future Demand
    • Export-Import Market Potential
    • Raw Material & Manpower Availability
    • Project Costs and Payback Period

    We at NPCS, through our reliable expertise in the project consultancy and market research field, Provides exhaustive information about the project, which satisfies all the above mentioned requirements and has high growth potential in the markets. And through our report we aim to help you make sound and informed business decision.


    The report contains all the data which will help an entrepreneur find answers to questions like:

    • Why I should invest in this project?
    • What will drive the growth of the product?
    • What are the costs involved?
    • What will be the market potential?

    The report first focuses on enhancing the basic knowledge of the entrepreneur about the main product, by elucidating details like product definition, its uses and applications, industry segmentation as well as an overall overview of the industry sector in India. The report then helps an entrepreneur identify the target customer group of its product. It further helps in making sound investment decision by listing and then elaborating on factors that will contribute to the growth of product consumption in India and also talks about the foreign trade of the product along with the list of top importing and top exporting countries. Report includes graphical representation and forecasts of key data discussed in the above mentioned segment. It further explicates the growth potential of the product.

    The report includes other market data like key players in the Industry segment along with their contact information and recent developments. It includes crucial information like raw material requirements, list of machinery and manufacturing process for the plant. Core project financials like plant capacity, costs involved in setting up of project, working capital requirements, projected revenue and profit are further listed in the report.

    Reasons for buying the report:

    • This report helps you to identify a profitable project for investing or diversifying into by throwing light to crucial areas like industry size, demand of the product and reasons for investing in the product.

    • This report provides vital information on the product like its definition, characteristics and segmentation.

    • This report helps you market and place the product correctly by identifying the target customer group of the product.

    • This report helps you understand the viability of the project by disclosing details like raw materials required, manufacturing process, project costs and snapshot of other project financials.

    • The report provides forecasts of key parameters which helps to anticipate the industry performance and make sound business decision.


    Our Approach:

    • Our research reports broadly cover Indian markets, present analysis, outlook and forecast.

    • The market forecasts are developed on the basis of secondary research and are cross-validated through interactions with the industry players. 

    • We use reliable sources of information and databases.  And information from such sources is processed by us and included in the report.


    Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:



    Ø  Introduction

    ·         Project Introduction

    ·         Project Objective and Strategy

    ·         Concise History of the Product

    ·         Properties

    ·         BIS (Bureau of Indian Standards) Provision & Specification

    ·         Uses & Applications


    Ø  Market Study and Assessment

    ·         Current Indian Market Scenario

    ·         Present Market Demand and Supply

    ·         Estimated Future Market Demand and Forecast

    ·         Statistics of Import & Export

    ·         Names & Addresses of Existing Units (Present Players)

    ·         Market Opportunity


    Ø  Raw Material

    ·         List of Raw Materials

    ·         Properties of Raw Materials

    ·         Prescribed Quality of Raw Materials

    ·         List of Suppliers and Manufacturers


    Ø  Personnel (Manpower) Requirements

    ·         Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel


    Ø  Plant and Machinery

    ·         List of Plant & Machinery

    ·         Miscellaneous Items

    ·         Appliances & Equipments

    ·         Laboratory Equipments & Accessories

    ·         Electrification

    ·         Electric Load & Water

    ·         Maintenance Cost

    ·         Sources of Plant & Machinery (Suppliers and Manufacturers)


    Ø  Manufacturing Process and Formulations

    ·         Detailed Process of Manufacture with Formulation

    ·         Packaging Required

    ·         Process Flow Sheet Diagram


    Ø  Infrastructure and Utilities

    ·         Project Location

    ·         Requirement of Land Area

    ·         Rates of the Land

    ·         Built Up Area

    ·         Construction Schedule

    ·         Plant Layout and Requirement of Utilities


    Project at a Glance

    Along with financial details as under:


      •     Assumptions for Profitability workings

      •    Plant Economics

      •    Production Schedule

      •    Land & Building

                Factory Land & Building

                Site Development Expenses

      •    Plant & Machinery

                 Indigenous Machineries

                Other Machineries (Miscellaneous, Laboratory etc.)

      •    Other Fixed Assets

                Furniture & Fixtures

                Pre-operative and Preliminary Expenses

                Technical Knowhow

                Provision of Contingencies

      •   Working Capital Requirement Per Month

                 Raw Material

                Packing Material

                Lab & ETP Chemical Cost

               Consumable Store

      •   Overheads Required Per Month And Per Annum

             Utilities & Overheads (Power, Water and Fuel Expenses etc.)

                 Royalty and Other Charges

                Selling and Distribution Expenses

      •    Salary and Wages

      •    Turnover Per Annum

      •   Share Capital

                Equity Capital

                Preference Share Capital


      •    Annexure 1:: Cost of Project and Means of Finance

      •    Annexure 2::  Profitability and Net Cash Accruals


                    Expenses/Cost of Products/Services/Items

                    Gross Profit

                    Financial Charges     

                    Total Cost of Sales

                    Net Profit After Taxes

                    Net Cash Accruals

      •   Annexure 3 :: Assessment of Working Capital requirements

                    Current Assets

                    Gross Working. Capital

                    Current Liabilities

                    Net Working Capital

                    Working Note for Calculation of Work-in-process

      •    Annexure 4 :: Sources and Disposition of Funds

      •    Annexure 5 :: Projected Balance Sheets

                    ROI (Average of Fixed Assets)

                    RONW (Average of Share Capital)

                    ROI (Average of Total Assets)

      •    Annexure 6 :: Profitability ratios


                    Earnings Per Share (EPS)


                 Debt Equity Ratio

            Annexure 7   :: Break-Even Analysis

                    Variable Cost & Expenses

                    Semi-Var./Semi-Fixed Exp.

                    Profit Volume Ratio (PVR)

                    Fixed Expenses / Cost 


      •   Annexure 8 to 11:: Sensitivity Analysis-Price/Volume

                Resultant N.P.B.T

                Resultant D.S.C.R

       Resultant PV Ratio

       Resultant DER

      Resultant ROI

              Resultant BEP

      •    Annexure 12 :: Shareholding Pattern and Stake Status

            Equity Capital

            Preference Share Capital

      •   Annexure 13 :: Quantitative Details-Output/Sales/Stocks

            Determined Capacity P.A of Products/Services

            Achievable Efficiency/Yield % of Products/Services/Items 

            Net Usable Load/Capacity of Products/Services/Items   

           Expected Sales/ Revenue/ Income of Products/ Services/ Items   

      •    Annexure 14 :: Product wise domestic Sales Realisation

      •    Annexure 15 :: Total Raw Material Cost

      •    Annexure 16 :: Raw Material Cost per unit

      •    Annexure 17 :: Total Lab & ETP Chemical Cost

      •    Annexure 18  :: Consumables, Store etc.,

      •    Annexure 19  :: Packing Material Cost

      •    Annexure 20  :: Packing Material Cost Per Unit

      •    Annexure 21 :: Employees Expenses

      •    Annexure 22 :: Fuel Expenses

      •    Annexure 23 :: Power/Electricity Expenses

      •    Annexure 24 :: Royalty & Other Charges

      •    Annexure 25 :: Repairs & Maintenance Exp.

      •    Annexure 26 :: Other Mfg. Expenses

      •    Annexure 27 :: Administration Expenses

      •    Annexure 28 :: Selling Expenses

      •    Annexure 29 :: Depreciation Charges – as per Books (Total)

      •   Annexure 30   :: Depreciation Charges – as per Books (P & M)

      •   Annexure 31   :: Depreciation Charges - As per IT Act WDV (Total)

      •   Annexure 32   :: Depreciation Charges - As per IT Act WDV (P & M)

      •   Annexure 33   :: Interest and Repayment - Term Loans

      •   Annexure 34   :: Tax on Profits

      •   Annexure 35   ::Projected Pay-Back Period And IRR