District Industries Centers (DICs) – Meaning, Eligibility, Loan Schemes, Functions & Activities

District Industry Center (DIC) under the Directorate of Industries and Commerce offers a subsidy loan scheme for young professionals under the guidance of the Ministry of Social Justice and Empowerment. Established in 1978, District Industries Centers’ program was initiated by the Central Government to promote tiny, cottage, village, and Small Scale Industries (SSIs) in smaller towns and their particular areas to make them available with all the basic needs, services, and facilities.

DIC’s primary focus is to generate employment in rural regions of India. District Industries Centers are managed and operated at the district level to provide all the necessary support services to entrepreneurs or first-time business owners to start their own MSMEs. DICs also promote the Registration and Development of Industrial Cooperatives.

Eligible Entities

Below mentioned are the eligible entities that can avail loans under the DIC scheme:

• People belonging to scheduled castes, safai karamcharis families, and other backward classes (OBCs)
• Additional entities include physically disabled young professionals, such as engineers, doctors, pathologists, chartered accountants, advocates, physiotherapists, architects, pragmatists, etc.

Business Loans offered by various Govt. Corporations

a) National Schedules Caste Finance & Development Corporation (NSCFDC)

NSFDC offers term loan for project(s)/unit(s) costing up to Rs. 50 lakh.

Term Loan Details:

Interest Rate for Beneficiaries	Based on the loan amount (6%-10% p.a.)*
Unit Amount	Up to Rs. 50 lakh
Loan amount	Up to 95% of the project cost
Repayment tenure	Up to 10 years
Moratorium Period	6 months to 12 months, depending on business activity

*Note: Above mentioned rates of interest are not on slab basis.

b) National Safai Karamcharis Finance & Development Corporation (NSKFDC)

Loan Details:

Interest Rate for Beneficiaries	6% p.a. (Beneficiary) & 3% p.a. (SCA)*
Unit Amount	Up to Rs. 15 lakh
Loan amount/Project Cost	Up to 90% of the unit cost, rest 10% shall be provided by State Channelising Agencies (SCA)
Repayment tenure	Up to 10 years, implementation period up to 4 months
Promoter’s contribution	Up to 10%, not insisted up to Rs. 2 lakh
Moratorium Period	6 months from date of loan disbursement

*State Channelising Agencies

c) National Backward Caste Finance & Development Corporation (NBCFDC)

Under this loan scheme, funding can be used for various income-generating activities that include Agriculture and Allied Activities, Small Business/Artisan & Traditional Occupation, Transport Sector & Service Sector, and Technical & Professional Trades/Courses.

Members of Backward Classes, as notified by Central Government/State Governments with maximum annual family income up to Rs. 3.00 lakh are eligible.

Term Loan Details:

Interest Rate	Loan upto Rs. 5.00 Lakh: 6% p.a. Loan above Rs.5.00 Lakh upto Rs. 10.00 Lakh: 7% p.a. Loan above Rs.10.00 Lakh up to Rs. 15.00 Lakh: 8% p.a.
Loan amount	Up to Rs. 15 lakh per Beneficiary
Repayment tenure	Up to 8 years, 6 months moratorium
Project Cost	85% NBCFDC Loan and 15% Channel Partner/Beneficiary Share

 d) National Physically Challenged Finance & Development Corporation (NPCFDC)

Vishesh Microfinance Yojana (VMY)

Loan Details:

Interest Rate	NHFDC to Implementing Agencies: 4.50% p.a. Interest Spread to Implementing Agencies: Up to 8% p.a. Implementing Agencies to Beneficiaries: Up to 12 % p.a.
Loan amount	Up to 90% of Project Cost, rest 10% to be contributed by Implementing Agencies
Repayment tenure	Up to 3 years, Moratorium period of 3 months
Promoter’s contribution	Up to 10%

Note: All above-mentioned interest rates are subject to change and depend on the sole discretion of the Ministry and RBI.

Functions of the District Industry Center (DIC)

DIC’s key functions include the following:

• Arrangements for credit facilities, machinery & equipment
• Development and expansion of industrial clusters
• Identification of suitable schemes
• Recognizing and financially supporting new entrepreneurs
• Preparation of feasibility reports
• Providing financial support to small units
• Providing raw materials

The functioning of DICs and their achievement is monitored by the Additional Chief Secretary (Industries) and Director Of Industries & Commerce. Approximately, there are 14 District Industries Centers (DICs), one each in the 14 districts of the state.

The Government of India offers financial assistance for District Industries Centre in the following ways:

Type and Purpose of Expenses	Construction of Office Building	Meeting Office Expenditure	Actual Expenditure
Non-recurring grant	Up to Rs. 2 lakh	Up to Rs. 3 lakh	NA
Recurring Establishment	NA	NA	Up to 70% of actual expenditure, limit up to Rs. 3.75 lakh

Activities of DICs

Further stated are the activities performed by DICs:

• DICs allot sheds in Electrical & Electronic Industrial Estates
• Provides clearance of licenses etc. through Single Window Meeting
• Conducts Motivational Campaigns
• Helps in the distribution of Project profiles among entrepreneurs
• Grants subsidies to Small Scale Industries (SSIs) units
• Implements Prime Minister’s Rozgar Yojana (PMRY)
• Provides marketing and raw material assistance via Small Industries Development Corporation (SIDCO)
• Organizes Industrial Cooperative Societies
• Recommends Awards to SSI units and loan applications to banks under KVIC Scheme
• Helps in the Registration of Handicrafts/Cottage industries & SSI units (Permanent/Provisional)
• Provides rehabilitation of sick SSI units
• Undertakes training programs for Entrepreneur Development

Also Know: Documents Required for MSME registration in India

Additional Functions of DICs

Discussed below are some additional functions of DICs:

1. Loan Arrangement

DICs arrange loans with financial institutions like banks, NBFCs, MFIs, etc. to provide funding assistance to entrepreneurs. They also monitor the flow of industrial credit, district-wise.

2. Undertakes Training Courses

DICs conduct training courses for entrepreneurs of small and tiny units. Training courses help entrepreneurs to develop new products with better quality and performance.

3. Machinery and Equipment

DICs designate the locations from where the machinery and equipment can be acquired. They also arrange for machinery supply on a hire-purchase basis.

Also Read: What are the documents required for a machinery loan?

4. Conducts Surveys

DICs conduct surveys of existing industries, traditional industries, raw materials, and human resources. These industries also provide forecasting of numerous products related to specific industries.

5. Promoting rural artisans

DICs have helped in the promotion of rural artisans by working closely with Small Scale Industries. They have also worked for the development of khadi and village industries and organized training programs for rural artisans.

Prior to the existence of DICs, business owners and entrepreneurs have to personally visit their respective agencies to get appropriate financial assistance and facilities. Nowadays suitable services and facilities are delegated by the State Government to DICs to meet the requirements of entrepreneurs.

Also know about : What is Pradhan Mantri Mudra Yojana Loan in India?

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