District Industries Centres - Meaning, Schemes and Eligibility

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With a view to promoting entrepreneurial development, the Central Government launched the District Industries Centre (DIC) programme in 1978. A DIC acts as a focal point providing support to the micro, small, medium, cottage industries at the district level.

Role of District Industries Centres (DICs)

District Industries Centres The main objectives of DICs include the following:

Facilitate entrepreneurial capacity building for small and rural industries at the district level
Identify new entrepreneurs and provide assistance for their startup’s growth
Offer financial assistance and support to smaller enterprises
Promote industrialisation at the district level
Help reduce the regional imbalance in the development of industries
Offer support at the pre- and post-investment level

Schemes Under the District Industries Centres (DICs)

The following are the schemes that fall under the DIC program:

Prime Minister’s Employment Guarantee Program (PMEGP)

The Union Ministry of MSME runs the Prime Minister’s Employment Generation Programme (PMEGP) to provide youth with employment opportunities in the non-farming sector.

Under this program, the government offers a Margin Money subsidy to set up new units. The subsidy goes up to 35% in rural areas and up to 25% in urban areas.

Entrepreneurship Development Scheme

The Entrepreneurship Development Scheme seeks to promote entrepreneurial skills in the unemployed youth by providing them with relevant training. The government offers three training programs under this scheme, including a technical training program.

District Award Scheme

The state government of Maharashtra runs this scheme to promote entrepreneurship among small industries and award them for their achievements. Eligible enterprises are those with EM (Entrepreneurs Memorandum) registration for the last 3 years and have been in production for at least the last 2 years.

Seed Money Scheme

The Seed Money Scheme is another Maharashtra Government-run scheme that provides soft loans to unemployed youth to assist them in establishing self-employment ventures. They can use these funds to obtain institutional finance.

The government provides seed money assistance of up to 20% for project costs extending up to ₹25 Lakhs.

DIC Loan Scheme

This government scheme aims to generate employment opportunities for the unemployed youth in towns and villages with a population of up to 1 Lakh. To be eligible for assistance under this scheme, the venture must have a capital investment of less than ₹2 Lakhs.

Eligibility Criteria to Apply Under the District Industries Centres (DICs)

Here are the basic eligibility criteria to get a loan from DIC:

The applicant’s age must be over 18 years
The applicant must at least have cleared the eighth-grade
The value of the enterprise must not exceed ₹10 Lakhs in case of manufacturing companies and ₹5 Lakhs in case of commercial or product sector

Activities Under District Industries Centres (DICs)

A District Industries Centre carries out the following activities:

Provide in-principle clearance for LSI registration
Provide a No Objection Certificate (NOC) for additional power
Sanction a business’ change of name, change in the constitution, the inclusion of new items, or shifting of location
Provide NOC for the inclusion of additional machinery or addition in place of business
Provide a manufacturer’s certificate for quality control
Assess the scarcity of raw materials
Provide ISO 9000 reimbursement and running certificate

Additional Functions of DICs

The following are some of the additional functions of the District Industries Centres:

Provide information about the sources of raw materials and machinery to the concerned industries in the area
Allot raw materials to industries functioning at the district level
Promote new industrial growth centers
Provide entrepreneurs with incentives provided by State Governments and funding assistance through government schemes
Make information about marketing, trade fairs, and buyer-seller meetings available to the concerned enterprises
Offer guidance on the export and import of certain goods and services
Provide assistance to solve problems related to SSI registration, bank loan, production, and more
Promotes non-conventional sources of energy

Important Links

Other Govt. Schemes related Links

What is a DIC certificate?

District Industries Centres grant two types of registration certificates to small, village, cottage, and handicraft enterprises. However, registration for industries with DIC is voluntary.

The first type is the Preliminary Registration Certificate (PRC), provided as a temporary certificate. The Centre grants a Permanent Registration Certificate (PMT) when the enterprise begins its operations.

How many DICs are there across the country?

There are 830 District Industries Centres (DICs) across India.

What is the single window clearance system provided by the DICs?

Each DIC provides a single window clearance facility. It is generally an online portal that quickens the process of receiving necessary statutory approvals and licences for new industrial units.

What is the monetary sum provided by the Maharashtra Government under the District Award Scheme?

The Maharashtra Government offers ₹15,000 and ₹10,000 as rewards for the first and second-prize winners, respectively, under the District Award Scheme.