1 Teaching Innovation - Entrepreneurial - Global The Centre for Technology enabled Teaching & Learning, N Y S S, India DTEL DTEL (Department for Technology Enhanced Learning)

DEPARTMENT OF MECHANICAL ENGINEERING V-SEMESTER INDUSTRIAL ECONOMICS AND ENTREPRENEURSHIP DEVELOPMENT 2 UNIT NO.6

UNIT 6:- SYLLABUSDTEL. Factors governing project selection 1 Market survey, Preparation of project report, 2 Financial, technical & market analysis of project. 3 Entrepreneurial support systems, 4 3 Role of consultancy organization like 5 District Industrial Centre, 6 State Industrial Development Corporation 7

UNIT 6:- SYLLABUSDTEL. Financial institution, 8 Latest SSI schemes of DIC 9 4

UNIT-6 SPECIFIC OBJECTIVE / COURSE OUTCOMEDTEL To understand financial agencies, development related to industries and schemes for the development different projects 1 5 The student will be able to:

LECTURE 40:- PROJECT REPORTDTEL Factors governing project selection 6 6 Highlights of the Project Sponsors of the project Constitution and Management of the industrial concern Present and proposed composition of the Board Description of the project Purpose, capacity, process and design Technical arrangements Project management Labour Location Buildings Plant and equipment Raw materials, Consumables, Utilities Ecological effects Safety measures Effluent disposal

LECTURE 40:- PROJECT REPORTDTEL Factors governing project selection 7 7 Means of financing Share Capital Loan requirements Market and selling arrangements Product, its uses and Government policy, etc. Projected demand and supply, Prices Commercial Aspects – Sales forecast, marketing plan and distribution arrangements Financial evaluation operational performance Operating costs and profits Financial Statements Financial Return Economic and social evaluation Economic Effects Social Effects

LECTURE 41:- PROJECT REPORTDTEL Preparation Of Project Report 8 8 Memorandum Proposal of project Nature of proposal Purpose: New project, expansion, modernization or for any other approved purpose Brief History Past Performance Present Financial Position Project Project Implementation Schedule Production Factors Working Capital Requirements Marketing

LECTURE 42:- PROJECT REPORTDTEL Preparation Of Project Report 9 9 Commercial Viability – COP & Profitability. Commercial Viability – DSCR & Repayment Programmed Funds Flow Analysis Present Financial Position Projected Balance Sheets Project Implementation Schedule Security & Margin And Rate Of Interest Consents From Government And Others Group Companies Managerial Competency Others And Recommendations

LECTURE 43:- PROJECT REPORTDTEL Entrepreneurial Support 10 Entrepreneurial Support in the form of progressive policies which help entrepreneurial ventures. Incubators – which are set up to provide support to new firms in the early stages. Business clusters – which are made up of firms in the same industry in close proximity to one another.

LECTURE 44:- PROJECT REPORTDTEL Role of consultancy organization 11 District Industrial Centers (DIC) Maharashtra Small scale Industries Development Corporation Ltd (MSSIDC) Industrial Finance Corporation of India (IFCI) Maharashtra State Financial Corporation (MSFC)

LECTURE 44:- PROJECT REPORTDTEL Role of consultancy organization 12 District Industrial Centers (DIC) Objective - provide a focal point for the promotion of SSI, provide service and support to the decentralized industries under a single roof at pre investment, investment and post investment stage Initiated from 1st May 1978 Main activities/functions of the Public authority: –Registration of SSI–Census of SSI–Financing of SSI through banks–Provision of industrial estates–Implementation of Industrial Policy–Subsidies to SSI–Technical assistance– Matters relating to KVIC–Trade fairs, exhibition, awareness programme –Training

LECTURE 45:- PROJECT REPORTDTEL Role of consultancy organization 13 Maharashtra Small scale Industries Development Corporation Ltd (MSSIDC) Established in 1962 Initially, conceived as an agency for supply of raw materials to SSI units and also to extend marketing assistance to these units in selling their products Provides services like – Marketing Assistance, Raw Materials availability, Commercial warehousing, Exports (making export quota available, assistance in packing credit, documentation, shipping etc.) and Handicrafts MSSIDC started with a share capital of Rs. 10 lakhs in and its turnover was Rs lakhs Today, paid up capital is 9.13 crores

LECTURE 46:- PROJECT REPORTDTEL Role of consultancy organization 14 Industrial Finance Corporation of India (IFCI) Established on July 1, 1948 to cater to the long-term finance need s of the industrial sector Until the establishment of ICICI in 1956 and IDBI in 1964, IFCI remained solely responsible for implementation of the government’s industrial policy initiatives IFCI has sanctioned financial assistance of Rs 462 billion to 5707concerns IFCI has promoted Technical Consultancy Organizations (TCOs)

LECTURE 46:- PROJECT REPORTDTEL Role of consultancy organization 15 Maharashtra State Financial Corporation (MSFC) Established in 1953 as Bombay State Finance Corporation Operational in Maharashtra since 1962 Provides term loan assistance to Small and Medium scale industries Activities: –Major share in small scale units –Encouragement to first generation entrepreneurs –Dispersal of industries/service units to the backward and developing areas –Total sanction: Rs Crores including term loans of Rs. 3414crores

LECTURE 47:- PROJECT REPORTDTEL Latest SSI schemes of DIC (Wardha) 16 Prime Minister Rozgar Yojana ( PMRY ) : The Prime Minister Rozgar Yojana was launched on October 2, 1993 by Govt. of India with a view to generate gainful mass employment opportunities through micro enterprises in industry, service and business sectors. The scheme basically aims at providing self- employment to educated unemployed youth. The scheme is implemented in the entire State.

LECTURE 48:- PROJECT REPORTDTEL Latest SSI schemes of DIC (Wardha) 17 Seed Money Scheme (RSMS): Originally the Scheme was launched by Govt. of India in under the Employment Promotion Programme. The objective of the scheme is to encourage educated unemployed youth to take up self- employment venture through industry, service and business, by providing soft loan (seed money) to meet a part of his margin money required to avail of institutional finance.

LECTURE 48:- PROJECT REPORTDTEL Latest SSI schemes of DIC (Wardha) 18 DIC Loan Scheme Objectives : The scheme is to provide financial assistance in the form of margin/seed money for the promotion of small and tiny industries and also service industries in semi-urban and rural areas with a view to generate employment opportunities including self employment.

LECTURE :- PROJECT REPORTDTEL 19 THANK YOU