Solution:

Small Industries Development Corporation (SIDCO):

• In many state governments, for the promotion of small-scale industries, a separate corporation has been set up which is known as Small Industries Development Corporation.

• They undertake all kinds of activities for the promotion of small-scale industries. Right from the stage of installation, to the stage of commencing production, these Corporations help small-scale industries (SSI) in many ways.

• In short, they provide infrastructure facilities to small-scale industries.

• Due to the assistance provided by SIDCO, many backward areas in most of the states have been developed. So, SIDCO has also been responsible for spreading industrial activity throughout several states.

• In Tamilnadu, SIDCO is a state small industries corporation. It plays a lead role in developing a small-scale sector. It provides the following facilities to small scale units :

• (a)

  It makes provision for constructed sheds/plots in industrial estates. These are sold to entrepreneurs on a hire-purchase basis or given on a rental basis.

• (b)

  Assistance in procuring some scarce key raw materials like iron and steel, paraffin wax, potassium chlorate, Fatty Acids, etc., through its various distribution centers.

• (c)

  Financial assistance in the form of subsidies to industrial units in backward areas like Central Investment subsidy, and state capital subsidy.

  Interest-Free sales tax loans, power tariff subsidy, and margin money assistance for the rehabilitation of the sick in small-scale industries.

• (d)

  Marketing assistance to small entrepreneurs.