Institutional Support Structure for MSMEs

Recognising both the importance and the vulnerability of the sector, the central and state governments maintain a network of institutions to support MSMEs and to address the problems listed in the previous section:

• District Industries Centres (DICs) — set up in every district, including each district of Andhra Pradesh, as a single-point local agency providing registration assistance, project reports, raw-material help, and liaison with banks for a new small unit.
• Small Industries Development Bank of India (SIDBI) — the apex financial institution for the MSME sector, providing refinance to banks and financial institutions, direct term loans, venture-capital assistance and micro-finance support.
• National Small Industries Corporation (NSIC) — assists MSMEs through raw-material assistance, marketing support (including facilitating participation in government tenders), technology upgradation, and single-point registration for government purchase preference.
• Khadi and Village Industries Commission (KVIC) — promotes khadi and village industries specifically, through training, raw-material supply, and marketing support for khadi products.
• Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) — provides collateral-free credit-guarantee cover to banks lending to eligible micro and small enterprises, directly addressing the financing problem described earlier.
• MSME Development Institutes (MSME-DI) — provide technical consultancy, skill training and testing facilities at the state and regional level. …