For setting up of IID centres with facilities like water supply, power, telecommunication, common services centre including for technological back up services for small scale industries in rural backward areas as envisaged under the policy for promoting and strengthening small, tiny village enterprises announced by Govt. of India (GOI) on August 6, 1991.

The cost of improving / upgrading the deficient infrastructural facilities to increase the productivity and optimum utilisation of the existing centres / clusters in backward / rural areas may also be covered under the scheme

Implementing agencies (a public sector corporation or a corporate body or a good NGO having sound financial position) entrusted with the task of implementing the scheme by the concerned State / Union Territory (UT) Govt.

Selection of IID centre should be preceded by a comprehensive industrial potential survey of the area.

Suitable land would be provided by State / U.T. Govt. cost of which may be recovered from implementing agencies. Normally, agricultural land may not be used for setting up of an IID centre.

The size of IID centre would be about 15 to 20 hectares. The centre should provide for various facilities like water supply, power, telecommunication, effluent treatment etc.

The ceiling on project cost is Rs.50 million. Cost in excess of Rs.50 million may be met by State / UT Govt. Cost of Rs.50 million to be financed by Grant from Govt. of India (GoI) Rs.20 million and loan from SIDBI, from any other bank / FI of Rs.30 million. In case of North-Eastern Region, the amount of Grant from GoI and loan from SIDBI, from any other bank / FI would be Rs.40 million and Rs.10 million respectively