District Industries Center (DIC) was started in the country in 1978 by the Central Government. The objective of this program was to provide all kinds of facilities and services at one place for the development of small scale industries spread on a large scale in rural areas. So that the entrepreneurs engaged in small enterprises in rural areas do not have to face any problems.
Apart from this, the main objective of the District Industries Center program was to promote employment by setting up small scale industries in rural areas and small towns. It is meant to say that the main function of the District Industries Center is to develop such industrial units, which can be capable of generating huge employment opportunities in rural and small towns.
What is District Industries Center?
District Industries Center is an organization established at the district level, which works towards the development and establishment of industries and village industries applicable in that district. When District Industries Center programs were not there, a potential entrepreneur had to make visits to various government agencies to start his own venture or to gather information about it. Due to which there was a waste of his money, time as well as there was a lot of delay in starting the business.
Now many such powers and responsibilities have been given to the District Industries Center by the State Governments in many states. Due to which a potential or existing entrepreneur has started getting all the help he needs in a single agency (DIC).
Functions of District Industries Center
To provide information about the policies, schemes of the Central and State Government to the enterprises or potential entrepreneurs established in the district, and also to provide information about the loans of banks, financial institutions, etc., besides providing information on license registration and regulatory framework of the District Industries Center. Major functions are as below.
- Preparation of Prospective Industrial Profile of the district with feasible project report.
- Facilitate approval from various regulatory agencies in very less time with less effort. Establishing a single window system for approval.
- Facilitating credit link facility between banks and all types of entrepreneurs.
- Providing marketing related assistance to enterprises and entrepreneurs.
- Implementation of various self-employment schemes like Prime Minister Employment Generation Program (PMEGP) etc.
- Revival of weak and sick industries in consultation with Industrial Health Clinic is also included in the functions of District Industries Centre.
- To provide facilities by using new technology to maintain or establish relations between industries and technical institutions.
- To provide facilities for skill development of the type of industries for which opportunities are available in the district.
- Facilitating linkages between incubation centers, research centers and industries.
- Facilitating Entrepreneurship Development.
- Identifying and nurturing clusters.
- To lay special emphasis on the development of important areas identified by the government.
- To felicitate, reward and recognize outstanding performing entrepreneurs.
- Working closely with industrial associations and trade bodies is also included in the functions of the District Industries Centre.
However, industries which require common raw material can buy it from anywhere in the open market. It becomes difficult to manage the raw material for industries which require scarce materials like alcohol, molasses, methanol, coal etc. as raw material. Because their distribution is controlled and limited. Therefore, the District Industries Center helps such industries to purchase raw materials, and also controls it.
Role of District Industries Center
As we have already mentioned that District Industries Centers play a leading role in developing and encouraging industries in the states and districts. Although this program was started by the Central Government in 1978, but now the State Governments have also given them many responsibilities and powers to the DIC.
- There are many states where in addition to the District Industries Centers, Sub District Industries Centers have also been set up. So that employment can be created by bringing industrial development to rural areas and small towns.
- Play an important role in providing assistance for the programs decided under the District Industries Centre.
- Role in setting up single window clearance system.
- Role in promoting industries in rural and small towns.
- Role in generating employment opportunities in rural and small towns.
Loan Scheme of District Industries Center
It is very important to make it clear here that the loan scheme of District Industries Center (DIC) may be different in every state. It is meant to say that many states run many subsidy schemes to encourage employment in their state. Those whom they give the responsibility of implementation to the District Industries Center, Mukhyamantri Swarojgar Yojana started in different states is a unique example of this.
Apart from this, there are some such schemes which are run by the Government of India i.e. the Central Government, which are applicable in all the states. Presently a similar scheme has been launched by the Ministry of Social Justice and Empowerment, Government of India with the objective of providing subsidized loans to young professionals.
Who can take loan under the scheme?
Under this loan scheme run for young professionals, people belonging to Scheduled Castes, family members of Safai Karamcharis, Other Backward Classes can take loan. Apart from this, physically challenged young professionals like doctors, engineers, pathologists, advocates, chartered accountants, physiotherapists, architects etc. are eligible to avail this subsidy loan.
But the point to be noted here is that there are different finance and development corporations for young professionals belonging to different categories. Therefore, it may be that in order to get a loan under this loan scheme of District Industries Center, the concerned eligible youth will have to apply by visiting the website of the concerned Finance Development Corporation.
National Scheduled Castes Finance and Development Corporation:
www.nsfdc.nic.in
Eligible youth belonging to scheduled caste can apply for loan through National Scheduled Caste Finance and Development Corporation. Youth residing in rural areas whose annual income does not exceed Rs. 40000, youth residing in urban areas whose annual income does not exceed Rs. 55000. Under this scheme of District Industries Center, you can apply for a loan to start an enterprise.
- Maximum investment per unit up to Rs.30 lakh
- How much will the loan get up to 90% of the total investment (which does not exceed 27 lakhs)
- How much money will the promoter have to invest up to 2-10% of the total project
- How much subsidy will be given to BPL beneficiary up to Rs 10 thousand
- How much interest will be charged on the loan will depend on the loan amount which can be 6-10% p.a.
- Loan repayment time up to 10 years
How to get National Safai Karamchari loan
www.nskfdc.nic.in
The National Safai Karamcharis Finance and Development Corporation exists to provide loans and financial assistance to the National Safai Karamcharis. Professional scavengers, manual scavengers are eligible to take Zila Udyog Kendra loan to start an enterprise as per the rules given in the table below.
- Maximum investment per unit up to Rs.10 lakh
- How much will the loan get up to 90% of the total investment (which does not exceed 9 lakhs)
- How much money will the promoter have to invest up to 10% of the total project
- How much interest will be charged on the loan can be 6% p.a.
- Loan repayment time up to 10 years
National Backward Castes Finance and Development Corporation
www.nbcfdc.org.in/
Youth belonging to national backward caste who live in rural area and some of their annual income does not exceed Rs 40000, and youth living in urban areas whose annual income does not exceed Rs 55000, they can take loan under this scheme. Will be eligible as per rules.
- How much will the loan get up to 5 lakhs
- How much money will the promoter have to invest up to 5% of the total project
- How much interest will be charged on the loan can be 5-6% per annum.
- Loan repayment time up to 10 years
National Physically Handicapped Finance and Development Corporation
Professionals residing in rural areas with more than 40% disability and their annual income does not exceed Rs.3 lakh. Young professionals residing in cities with more than 40% disability and annual income not exceeding Rs.5 lakh. They are considered eligible to take loan for setting up enterprises under this scheme of District Industries Center. www.nhfdc.nic.in
- How much loan will be available up to 25 lakhs
- How much money will the promoter have to invest up to 10% of the total project
- How much interest will be charged on the loan can be 4-8% per annum.
- Loan repayment time up to 10 years
The loan scheme of District Industries Center, which we have mentioned here, is run by the Ministry of Social Justice and Empowerment, Government of India. Therefore, it is applicable all over India, although depending on the state, different schemes may be applicable in the states. Therefore, which scheme is applicable in your district or state, you will get information about it from your nearest District Industries Center only.
If you would like to open a shop, and don’t know the procedure to get the Loan. Then this article about getting loan for shop may be very helpful for you. Also if your business falls under MSME you can get loan under 59 minutes.