District Industries Centers (DICs): Who are They, Objectives and Functions

Small-scale businesses have a significant contribution to India’s economic growth, offering employment, innovative products, and community growth. New entrepreneurs drive most of the growth the economy sees with enhanced industrial output and exports. However, many of the emerging businesses face financial problems along with legal issues and a lack of resources, due to which they face bottlenecks in further operations. To help entrepreneurs deal with such situations, District Industries Centers (DICs) were established to promote the development of small-scale businesses, especially in semi-urban and rural areas. These centers assist the businesses with guidance, providing easy loans, access to resources, subsidies, and much more.  DICs simplify the industrial registration and setup process for such small-scale businesses. Let’s understand in detail who they are, their functions, and exactly how they promote industrial development in villages. 

What is the District Industries Centre (DIC)?

A District Industries Center (DIC) is a government-backed institute, established in 1978, that promotes the development of small businesses in rural and semi-urban areas. Their center aims to enhance industrial development in villages by providing assistance with registrations, funds, legal issues, training, Udyog Aadhaar registration, and other technical guidance. DIC supports entrepreneurs in various ways with its different programs. They offer complete guidance from establishing their new business to achieving sustainable growth. 

Key Functions of the District Industries Center or DIC

Identifying Projects: DIC conducts surveys and deep research to identify potential industrial projects. 

Providing Operational Guidance: The institutes provide complete technical and managerial guidance to entrepreneurs from setting up their business to overcoming operational challenges.

Financial Guidance: DIC provides financial assistance to the MSMEs and young industrialists, providing useful opinions tailored to their growth and guidance through the business loan application process.

Legal Assistance: Their centers provide legal help to businesses in acquiring essential licenses and registrations for compliance. 

Skill Improvement Trainings: DIC offers training courses tailored to the needs of entrepreneurs for efficient business management. 

Marketing Advice and Support: DIC professionals support the businesses with extensive marketing activities.

Major Schemes Offered By District Industries Centers (DICs)

Prime Minister’s Employment Guarantee Program (PMEGP): Established in 2008, it provides career opportunities to the educated but unemployed people living along with skill development. 

DIC Loan Scheme: DIC helps with financial assistance to MSMEs for industrial growth in rural and semi-urban areas. These loan schemes for businesses with capital investments below ₹2 lakhs. 

Seed Money Scheme: This scheme focuses on providing financial backup to young industrialists, offering self-employeds people with up to ₹25 lakhs in financing. There is a 15% cap of up to 10 lakhs for ventures and banks covering up to 75% of the project cost, which is also capped at ₹3.75 lakhs for SC/ST/OBC individuals. 

District Awards Scheme: Conducts award ceremony to recognize the successful entrepreneurs on Vishwakarma Jayanti which promotes them and encourages other emerging businesses. 

Entrepreneurship Development Training Program: These programs offer skills development, managerial training, and technical education to the entrepreneurs. 

Eligibility Requirements for Training Programs at District Industries Centers (DICs)

Here are the major requirements to be eligible for for DIC loan scheme for MSMEs:

• Age Limit: Minimum 18 years
• Qualifications Required: 8th grade pass result
• Manufacturing Company Value: > ₹10 lakhs
• Product/Commercial Sector Value: > ₹5 lakhs

Documents Required for the Process:

• Aadhar Card
• Company’s name and address proof
• Banking information
• Date of the company’s inception
• The primary function of the company
• Nature of business
• Employee Count 
• Essential financing details

Major MSME Business Loan Schemes Offered By The Government

These government-backed loan schemes promote the development of industries or small businesses in rural and semi-urban areas.  It helps the entrepreneurs to deal with initial financial problems. Their loan schemes include:

National Schedules Caste Finance & Development Corporation (NSCFDC)

NSCFDC is a loan scheme providing financial assistance to the scheduled castes, promoting business expansion in villages and semi-urban areas. After the approval, entrepreneurs may get up to 95% of the total project cost as a loan amount at an interest rate ranging between 6%-10% p.a. The unit amount can be disbursed up to Rs. 50 lakh based on the scope of the business, and the repayment tenure is up to 10 years. Further, if the need occurs the moratorium period under the scheme is 6 months to 12 months.

National Safai Karamcharis Finance & Development Corporation (NSKFDC)

NSKFDC is a non-profit undertaking of the Ministry of Social Justice and Empowerment, providing financial help to Safai Karamcharis, manual scavengers, and their dependents. The unit cost of the loan amount is up to Rs 15 lakhs, and the total loan amount totals up to 90% of the unit amount. Applicants may get up to 10 years repayment period along with a moratorium period of 6 months from the date of loan disbursement.

National Backward Caste Finance & Development Corporation (NBCFDC)

NBCFDC is a loan facility to promote small businesses for the members of backward classes, but the family income should not exceed ₹3 lakh. The loan amount can be up to Rs 15 lakhs, depending on the beneficiary, with the interest rates ranging between 6% p.a and 8% p.a. The repayment period is up to 8 years with the 6 months of moratorium. 

National Physically Challenged Finance & Development Corporation (NPCFDC)

The NPCFDC loan scheme focuses on supporting the physically challenged applicants in their business ventures. The loan disbursement amount and unit amount under this scheme are up to 90% of the project cost, with an interest rate ranging between 4.50% p.a. to 12 % p.a. The repayment period under this scheme is up to 3 years, along with a moratorium period of 3 months.

FAQs

Q. What is DIC in entrepreneurship? 

DIC or District Industries Centers are the government institutes that promote specific programs assisting in the development of rural and semi-urban industries or small businesses. They provide complete assistance, from company registration to training courses for achieving sustainable business growth. 

What is the role of DIC in MSME financing?

DIC offers various loan schemes for MSMEs under which they can get useful opinions, application guidance, and financial support after defining their eligibility to get the initial backing for establishing their industrial structures.

How to apply for DIC registration?

Online registration to get DIC assistance for your business is not available. You can apply to enroll in their programs by visiting the nearest DIC office. An associate will guide you through the complete process.