The National Small Industries Corporation (NSIC) is a Public Sector Undertaking (PSU) that comes under the purview of the Ministry of Micro, Small & Medium Enterprises of India. It was set up by the Government of India in 1955 to foster, promote, and aid the growth of the micro, small, and medium enterprises (MSME) in India.
NSIC (National Small Industries Corporation)
NSIC (National Small Industries Corporation) is an ISO certified Indian Government Enterprise under Micro, Small and Medium Enterprises. National Small Industries Corporation is working to aid, foster and promote the growth of MSMEs (micro, small and medium enterprises) all across the country. NSIC operates all across the nation through a network of Technical Centres and offices.
To manage its functions and operations in African countries, National Small Industries Corporation operates performs its administration from Johannesburg, South Africa. Apart from this, National Small Industries Corporation has set up Training cum Incubation Centres managed by highly trained professional manpower.
Objective of NSIC
To facilitate in establishing new small enterprises by way of providing integrated services in the areas of training for entrepreneurial skill development, preparation of project profiles/ reports, selection of small projects, identifying and sourcing of plant, facilitating sanction of credit facility, machinery and equipments and providing other support services for the development of small enterprises in manufacturing and services sectors.
Mission and Vision of NSIC
Vision: To become a leading organization fostering the growth of MSMEs Sector in India.
Mission: To support and promote MSMEs Sector by providing combined support services encircling Finance, Marketing, Technology and other Allied Services.
Consortia and Tender Marketing
Micro and Small Enterprises in their individual capacity encounter several issues in order to procure & deliver large orders, which negate them a level playing field vis-a’-vis large enterprises. National Small Industries Corporation forms consortia of MSEs manufacturing the same or similar product or products, thereby combining in their capacity.
National Small Industries Corporation applies the tenders on behalf of single Micro and Small Enterprise/Consortia of Micro and Small Enterprise for securing orders for them. Finally, these orders are dispersed amongst Micro and Small Enterprises in tune with their capacity of production.
Schemes Offered by NSIC
Name of the Scheme | Objective |
Bank Credit Facilitation | To facilitate MSMEs in accessing credit assistance from nationalised and private sector banks |
Raw Material Assistance | To offer financial support to the MSMEs for the purchase of raw materials (imported and exported) so that it can be used for producing quality products |
Single Point Registration Scheme | To provide a single point registration for MSMEs to participate in various government purchases |
Bank Credit Facilitation
To fulfil the credit needs of the MSME units, NSIC has partnered with various private and public sector banks. NSIC facilitates access to credit support to the MSMEs from banks by assisting in the documentation process while also following up with the banks.
To avail loans, borrowers can download the loan application forms from the official website of the banks under the ‘Bank Credit Facilitation Scheme. The banks that offer loans under this scheme are Yes Bank, IndusInd Bank, Federal Bank, Kotak Mahindra Bank, HDFC Bank, Tamilnad Mercantile Bank, Jammu & Kashmir Bank, AU Small Finance Bank, Ujjivan Small Finance Bank, UCO Bank, Corporation Bank, Bank of Maharashtra, Oriental Bank of Commerce, Bank of Baroda, Axis Bank, Punjab National Bank, State Bank of India, Indian Bank, Central Bank of India, Canara Bank, Syndicate Bank, South Indian Bank, Electronica Finance Limited, and Bestdealfinance.com Pvt. Ltd.
Raw Material Assistance Scheme
MSMEs can receive assistance from NSIC to procure raw materials as per their requirements in the form of credit and advance payment. Any MSME in the manufacturing segment with a Udyog Aadhar Memorandum (UAM) can take advantage of the scheme. Single MSME units can avail loans of up to Rs.5 crore while a group of units engaged in activities related to manufacturing can avail loans of up to Rs.15 crore.
The rate of interest charged on loans availed under this scheme range between 9.50% and 12%. MSMEs availing loans under this scheme need to be repaid within 90 days but this can be extended upon request.
Single Point Registration Scheme
To enhance the share of purchases from the MSME sector, the Single Point Registration Scheme was launched by NSIC in 1976 under the Government Stores Purchase Programme. This scheme enables MSEs to participate in government purchases through a single registration. The MSEs will be issued a Provisional Registration Certificate with a monitory limit of Rs.5 lakh. The PRC will have a validity of 1 year from the date of issue. Some of the benefits that MSEs can enjoy under the scheme have been listed below:
- Tender will be issued free of cost
- Exempted from paying Earnest Money Deposit
- While participating in tenders, MSEs that quote a price within L1+15% price band will be permitted to supply up to 25% of the requirement by reducing their price to L1 where L1 is non-MSE.
- A yearly goal of at least 25% of the total annual purchases of the products or services rendered/produced by the MSEs will be set for purchase by every central departments/ministries/PSUs. Out of this, 25% will be earmarked for units owned by Scheduled Tribes/Scheduled Castes while 3% will be earmarked for units owned by women entrepreneurs.
- 385 items from MSEs will be reserved for exclusive purchase.
Technology Incubation – PPP Mode
As NSIC work to promote micro and small enterprise in India, one of the methods that it has employed is to create self-employment opportunities by training unemployed people entrepreneurship building skills, who will be able to new small business enterprises for themselves in any manufacturing or service sectors or look for other employment opportunities. In order to achieve this, NSIC has started a new initiative by entering into franchisee arrangements with private entities who may be interested in setting up Training-cum-Incubation Centres(NSIC-TIC) at various locations across India under Public-Private Partnership (PPP) mode.
Government Schemes implemented by NSIC
This is an initiative launched by the Government of India which aims to help those belonging to SC and ST group to start their own business successfully and take care of their financial requirements.
The Government of India in order to make this scheme successful have allocated Rs.490 crore for the period between 2016 and 2020. All the new and existing SC and ST entrepreneur must be registered on the MSME Databank.
Marketing Assistance Scheme
The MSME sector has grown in India in the last few years and has been one of the most dynamic sectors of the Indian economy. Various MSME schemes in India has established business and provided employment opportunities at lower capital cost.
Marketing is one of the most important tools for any business to promote itself and grow. Hence, in order to help enterprises grow, Ministry of Micro, Small & Medium Enterprises, inter-alia, through National Small Industries Corporation (NSIC), a Public Sector Enterprise of the Ministry has been providing marketing support to MSMEs under the Marketing Assistance Scheme.
Some of the objectives of this scheme are:
- Aims to enhance the marketing capabilities and competitiveness of MSMEs
- Showcase the competence of MSMEs
- To educate MSMEs about the current market scenario and how the business will be impacted
- To form consortia of MSMEs in order to help them market their products and services
- Providing platform to MSMEs in order to help them interact with large buyers
- To propagate various government programmes
- To enrich and improve the marketing skills of micro and small enterprise entrepreneurs
Aspire
India currently is facing challenges of providing employment and livelihood to people as the population in the country grows. The MSME sector has been identified as one sector which has the capability of addressing the problem and provide employment opportunities to economically weak people and help them set up their own business.
Aspire scheme is one such scheme which aims in meeting those objectives.
Some of the objectives of this scheme are given below:
- Creating new jobs which in turn will lead to a reduction in unemployment
- Provide opportunities to people to set up business and promote entrepreneur skills in India
- Grassroot economic development at district level
- To help facilitate business solutions in order to fulfil yet to be met social needs
- To promote innovation which in turn will only strengthen the competitiveness of the MSME sector in India
FAQs
What industry is NSIC in?
Founded in 1955, the Ministry of Micro, Small, and Medium Enterprises (MSME) of the Government of India recognises National Small Industries Corporation Ltd. (NSIC) as an ISO 9001-2008 certified enterprise.
What sets NSIC and MSME apart from each other?
Regarding scope, the MSME has a broader definition because NSIC is a corporation under the Ministry of MSME. NSIC is primarily concerned with the commercial expansion of micro and small firms in the nation, whereas the Ministry of MSME serves the various business requirements of all small-scale organisations.
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