SIDCO | Need | Objectives | Functions
SMALL INDUSTRIES DEVELOPMENT CORPORATION (SIDCO)
Table of Contents
Need for Small Industries Development Corporation (SIDCO)
In many state governments, for the promotion of small scale industries, a separate corporation has been set up which is known as Small Industries Development Corporation. They undertake all kinds of activities for the promotion of small scale industries. Right from the stage of installation, to the stage of commencing production, these Corporations help small scale industries (SSI) in many ways.
In short, they provide infrastructure facilities to small scale industries. Due to the assistance provided by SIDCO, many backward areas in most of the states have been developed. So, SIDCO has also been responsible in spreading the industrial activity throughout several states.
Objectives of SIDCO
The following are the main objectives of SIDCO
- The main objective of SIDCO is to stimulate the growth of industries in the small scale sector
- To provide infrastructure facilities like roads, drainage, electricity, water supply, etc is one of the primary objective of SIDCO.
- To Promote industrial estates which will provide industrial sheds of different sizes with all basic infrastructure facilities.
- To Provide technical assistance through training facilities to the entrepreneurs.
- To Promote skilled labor through the setting up of industrial training institutes.
Small Industries Develompent Corporation, Tamilnadu:
In Tamilnadu, India, Small Industries Development Corporation (SIDCO) was set up in 1971. The prime function of SIDCO was to identify potential growth centres in various parts of Tamilnadu. There is a network of 76 industrial estates in the State which are maintained by SIDCO. 32 of these were formed by the government initially and subsequently handed over to SIDCO. The remaining 44 estates were set up by SIDCO itself. Source (SIDCO – TAMILNADU SMALL INDUSTRIES DEVELOPMENT CORPORATION LIMITED) It has set up these estates in rural and most backward areas to ensure balanced industrial development.
Functions of SIDCO
SIDCO supplies scarce raw materials:
Some of the scarce raw materials are procured by the corporation either from the domestic market or from abroad and are provided to the needy small scale industries. For this purpose, SIDCO has a number of raw material depots and these depots are procuring various scarce raw materials, as per the requirements of small scale industries in the state.
SIDCO provides marketing assistance:
In order to provide an efficient marketing support to small scale industries, the corporation has taken up various schemes. In fact, the corporation participates in the tenders floated by the state government departments and also with the DGS & D (Director General of Supplies and Disposal). SIDCO makes advance payments for obtaining orders and distribute them among the various small scale units. SIDCO also arranges for buyer — seller meets frequently.
SIDCO assists in Bills discounting:
When small scale units supply goods to government departments, there is a delay in receiving payments. In such a situation, the bills drawn on government departments will be discounted by SIDCO and upto 80% of the bill value is given to the supplier. This helps the SSI units in solving their working capital crisis.
SIDCO provides Export marketing assistance:
To promote export marketing among the small scale industries, SIDCO has developed websites because of which it is able to display the products of the small scale industries in foreign markets and obtain export orders. Once an export order is obtained, the Common export manager of SIDCO will make arrangements for extending various services for export of the product. SIDCO also helps in the small scale units taking part in the international trade fair at New Delhi, Pragati Maidan so that the products of small scale industries of Tamilnadu are displayed.
SIDCO set up Captive power plants:
In order to provide uninterrupted and good quality power supply, SIDCO has taken up a plan to set up captive power plants in major industrial estates. It is now planning to set up these plants in 10 industrial estates.
SIDCO promotes skill development centres:
In an effort to supply skilled laborers to various small scale industries, skill development centres are being set up in various industrial estates which will be training workers in varied industrial activities and they will be trained in modern skill.
SIDCO promotes women entrepreneurs:
In addition to the above, in order to promote women entrepreneurs, a separate industrial estate for women has been set up at Tirumullaivoyal, near Chennai, where women entrepreneurs are trained in various fields of small scale industries.
In addition to SIDCO, there are various corporations that assists in the promotion of small scale industries such as, Small Industries Promotion Corporation of Tamilnadu (SIPCOT), Tamilnadu Small Industries Corporation (TANSI), Industrial and Technical Consultancy Organisation of Tamilnadu (ITCOT) and Tamilnadu Industries Investment Corporation (TIIC).
