The District Industries Centre Program began in 1978 as a government initiative to bring all assistance and programs to the village and small-sized entities under one roof, in order to effectively grow all small size businesses in the nation’s rural areas and villages. The DIC Program's major focus is on the establishment of these kinds of production plants, which will provide a large number of jobs in remote and semi-urban regions.
Did you know?
DIC loan scheme can be availed by scheduled castes, safai karamcharis families, and other backward classes (OBCs)?
What is a District Industries Centre?
A District industries Centre is a district-level entity that assists in the establishment of small businesses in the rural areas of India. Before establishing a DIC, a potential entrepreneur must visit various organisations in order to obtain the necessary support and facilities, and in many instances, most of them will be located outside of their neighbourhood.
So, there were a lot of delays, as well as the entrepreneur having to incur many expenses which they can’t afford. Due to these inconveniences, several agencies of the state authority have now been assigned appropriately in charge to the DIC. Thus, an entrepreneur may obtain all of the help they require in setting up their business from a single institution, namely DIC.
Role of District Industries Centres (DICs)
District Industry Centres exist only to promote and support the businesses of their respective states. The Department of Commerce and Industry in each state forms DICs. Alongside DICs, Sub-District Industries Centres provide assistance. DIC's responsibilities include:
- DIC assists an entrepreneur in the DIC programs and guarantees continuous support during the establishment of their business.
- DIC offers young business owners a single-window clearing system that allows them to settle their business-related problems quickly.
- DIC encourages the expansion and development of many manufacturing industries in rural and urban communities.
- Under the Standup India Scheme, DIC provides financing for MSMEs, start-ups and growing companies.
- DIC provides self-employed individuals with machinery and tools to help them with their businesses.
- DIC also carries out a periodic assessment of their programs and schemes to ensure proper implementation and operation.
Schemes Under the District Industries Centres (DICs)
Below is the list of DIC schemes:
- Prime Minister’s Employment Guarantee Program: This program started its operations in 2008. This scheme's purpose is to assist educated but jobless persons in rural and urban regions. It offers adequate job related skills.
- DIC Loan Scheme: This scheme is accessible in cities and rural regions under one lakh people and a capital investment less than ₹2 lakhs. It assists the self-employed and smaller businesses in rural regions. Small size Industries Board and Village Industries locate similar businesses and aid them in obtaining an MSME loan.
- Seed Money Scheme: This program aids self-employed individuals who are part of self-employment initiatives or specialised wage jobs. The financing under the scheme is ₹25 lakhs. For ventures up to ₹10 lakhs, the seed money support will be 15 percent. A loan from a bank will cover 75 percent of the project costs, with a maximum aid limitation of ₹3.75 lakhs for all SC/ST/OBC and the total support will be 20 percent.
- District Awards Scheme: This scheme, as the name implies, boosts the morale of new and successful businesses by recognizing them with district-level prizes. Every year, the District Advisory Committee picks such businesses and honours them on Vishwakarma Jayanti.
- Entrepreneurship Development Training Program: This program prepares educated but jobless individuals to get self-employment or professional jobs. The Entrepreneurship Introductory Program (Udyojakta Paricha Karyakram), Entrepreneurship Development Training Program and the Technical Training Program are the 3 training programs offered under this scheme.
Eligibility Criteria For Applying for a Training Program Under the District Industries Centres (DICs)
The eligibility requirements to apply for the various programs under DIC are different. You can review the requirements for each scheme separately to see if you qualify for MSME financing. The following are the prerequisites for a DIC credit for an MSME:
- Candidates must be at least eighteen years old.
- Candidates must have completed the eighth grade.
- The value of the manufacturing company has to be greater than ₹10 lakhs, and the price of the product or commercial sector must be greater than ₹5 lakhs.
To obtain a District Industry Centre certificate you will require only a few documents. And these are Aadhar Card, the name and address proof of your company, banking information, the date of the company's inception, the main function of the company, the nature of business, the count of workers (if there are any), and the business's financing details.
Functions of District Industries Centres (DICs)
- Survey and Investigation: The District Industries Centre surveys existing conventional and emerging businesses, raw materials, and people’s capabilities who are employed in the business. It anticipates the market price for numerous items used in a manufacturing unit. It also develops techno-economic viability analysis in order to provide enterprises with investment recommendations.
- Training Courses: The DIC also offers training classes for smaller and modest business owners. It functions as a go to contact point for start-ups and small industry service institutions.
- Machinery and Equipment: The District Industries Centre advises where one can purchase machinery and tools and can also organise for the delivery of machinery on a rental basis.
- Raw Materials: The District Industries Centre gathers information about the resources needed by various units and arranges bulk purchases of those products. As a result, small business operations may obtain raw materials at inexpensive costs.
- Arrangement for Loans: It establishes the required agreements with Leading Banking and other Financial Firms to give small businesses financial support. It also evaluates applications and keeps track of the movement of industrial loans in its province.
- Marketing: Market studies and market development opportunities are carried out by the District Industries Centre. It also arranges marketing channels related to small businesses, maintains communications with government contracted organisations, and keeps enterprises up to date on market data.
- Khadi and Village Industries: District Industries Centres concentrate on the improvement of Khadi and village businesses, as well as other small producers. It also maintains a strong working relationship with the State Khadi Authority and organises training courses for rural craftsmen.
District Industries Centres play an important part in the growth of entrepreneurs in India. This government project yielded some positive benefits, such as increased self-employment while also eliminating geographical disparities between the country's affluent and impoverished regions. We hope that the details of this article would have given a clear overview of everything you need to know about the district industries centres.