Know about – NSIC
National Small Industries Corporation (NSIC), is a Government of India Enterprise under Ministry of Micro, Small and Medium Enterprises (MSME). NSIC has been working to promote, aid and foster the growth of micro, small and medium enterprises in the country. NSIC operates through countrywide network of offices and Technical Centres. In addition, NSIC has set up Training cum Incubation Centre managed by professional manpower.
SCHEMES OF NSIC
NSIC facilitates Micro, Small and Medium Enterprises with a set of specially tailored scheme to enhance their competitiveness. NSIC provides integrated support services under Marketing, Technology, Finance and other Support service.
Marketing has been identified as one of the most important tool for business development. It is critical for the growth and survival of MSMEs in today’s intensely competitive market. NSIC acts as a facilitator and has devised a number of schemes to support enterprises in their marketing efforts, both domestic and foreign markets. These schemes are briefly described as under:
Consortia and Tender Marketing
Small Enterprises in their individual capacity face problems to procure & execute large orders, which deny them a level playing field vis-a-vis large enterprises. NSIC forms consortia of Micro and Small units manufacturing the same product, thereby pooling in their capacity.
NSIC applies the tenders on behalf of single MSE/Consortia of MSEs for securing orders for them. These orders are then distributed amongst MSEs in tune with their production capacity.
Single point Registration for Government Purchase
The units registered under Single Point Registration Scheme of NSIC are eligible to get the benefits under “Public Procurement Policy for Micro & Small Enterprises (MSEs) Order 2012” as notified by the Government of India, Ministry of Micro Small & Medium Enterprises, New Delhi vide Gazette Notification dated 23.03.2012.
- Issue of the Tender Sets free of cost;
- Exemption from payment of Earnest Money Deposit (EMD);
- In tender participating MSEs quoting price within price band of L1+15 per cent shall also be allowed to supply a portion upto 20% of requirement by bringing down their price to L1 Price where L1 is non MSEs;
- Every Central Ministries/Departments/PSUs shall set an annual goal of minimum 20 per cent of the total annual purchases of the products or services produced or rendered by MSEs. Out of annual requirement of 20% procurement from MSEs, 4% is earmarked for units owned by Schedule Caste /Schedule Tribes (as per PPP Order dated 23.03.2012 overall procurement goal shall be mandatory w.e.f. 01/04/2015) (Now the minimum procurement has been raised to 25% vide order of Ministry of MSME, Government of India dt: 9th November, 2018);
- In addition to the above, 358 items are also reserved for exclusive purchase from MSME Sector.
MSME Global Mart B2B Web Portal for MSMEs
NSIC offers Infomediary Services which is a one-stop, one-window bouquet of aids that will provide information on business & technology and also exhibit the core competence of Indian MSMEs. B2B Web portal is offering following benefits to the members of Infomediary Services.
- Interactive database of MSMEs
- Self web development tool
- National Tenders on email
- Centralized mail system
- Popular Products Section
- Unlimited global Trade Leads
- Trust Seal of NSIC
- MSME Web Store
- Multiple Language Support
- Discussion Board
- Call Centre Support & Live Chat
- Other Value added Services
- Payment Gateway for membership subscription
Collect and disseminate both domestic as well as international marketing intelligence for the benefit of MSMEs. This cell, in addition to spreading awareness about various programmes / schemes for MSMEs, will specifically maintain database and disseminate information.
Exhibitions and Technology Fairs
To showcase the competencies of Indian MSMEs and to capture market opportunities, NSIC participates in select International and National Exhibitions and Trade Fairs every year. NSIC facilitates the participation of the small enterprises by providing concessions in rental etc. Participation in these events exposes MSME units to international practices and enhances their business prowess.
Bulk and departmental buyers such as the Railways, Defence, Communication departments and large companies are invited to participate in buyer-seller meets to enrich small enterprises’ knowledge regarding terms and conditions, quality standards, etc required by the buyer. These programmes are aimed at vendor development from MSMEs for the bulk manufacturers.
NSIC facilitates credit requirements of small enterprises in the following areas:
Financing for procurement of Raw Material (Short term)
NSIC’s Raw Material Assistance Scheme aims at helping Small Enterprises by way of financing the purchase of Raw Material (both indigenous & imported). The salient features are:
- Financial Assistance for procurement of Raw Materials upto 90 days.
- Bulk purchase of basic raw materials at competitive rates.
- NSIC facilitates import of scares raw materials.
- NSIC takes care of all the procedures, documentation & issue of letter of credit in case of imports.
Finance through syndication with Banks
In order to ensure smooth credit flow to small enterprises, NSIC is entering into strategic alliances with commercial banks to facilitate long term / working capital financing of the small enterprises across the country. The arrangement envisages forwarding of loan applications of the interested small enterprises by NSIC to the banks and sharing the processing fee.
Technology is the key to enhancing a company’s competitive advantage in today’s dynamic information age. Small enterprises need to develop and implement a technology strategy in addition to financial, marketing and operational strategies and adopt the one that helps integrate their operations with their environment, customers and suppliers.
NSIC offers small enterprises the following support services through its Technical Services Centres and Extension Centres:
- Advise on application of new techniques
- Material testing facilities through accredited laboratories
- Product design including CAD
- Common facility support in machining, EDM, CNC, etc.
- Energy and environment services at selected centres
- Classroom and practical training for skill upgadation
NSIC Technical Services Centres are located at the following places:
|Name of the Centre||Focus area|
|Chennai||Leather & Footwear|
|Hyderabad||Electronics & Computer Application|
|New Delhi||Machine Tools & related activities|
|Rajkot||Energy Audit & Energy Conservation activities|
|Rajpura (Pb)||Domestic Electrical Appliances|
|Aligarh (UP)||Lock Cluster & Die and Tool making|
|Neemka (Haryana)||Machine Tools & related activities|
SOFTWARE TECHNOLOGY CUM BUSINESS PARKS
NSIC has established Software Technology cum Business Parks at New Delhi and Chennai for providing the space to small and medium enterprises in software development and to IT/ITES/MSME units not regd. with STPI or the units that are falling under the overall definition of MSME as per the guidelines of Ministry of Micro, Small and Medium Enterprises. Units other than MSME such as Banks/PSUs/Financial Institutions, corporate sector etc. would also be considered for allotment on a case-to-case basis on merit with the approval of Competent Authority. NSIC Software Technology cum Business Parks, New Delhi is located in a prime location at Okhla Industrial Area adjacent to NSIC Bhawan with a total built up area of approx.53000 sq.ft. This location is in the near vicinity to Nehru Place. (the commercial centre of computer industry). NSIC Software Technology cum Business Park, Chennai is located in a prime location at Guindy Industrial Estate (Jawahar Lal Nehru Statue) with a total built area of 48,000 Sq. Ft. This location is in the near vicinity to domestic and international Airports.
INCUBATION OF UNEMPLOYED YOUTH FOR SETTING UP OF NEW MICRO & SMALL ENTERPRISES
This programme facilitates setting up of new enterprises all over the country by creating self-employment opportunities for the unemployed persons. The objective of this scheme is to facilitate establishment of new small enterprises by way of providing integrated services in the areas of training for entrepreneurial skill development, selection of small projects, preparation of project profiles/reports, identification and sourcing of plant, machinery and equipments, facilitating sanction of credit facility and providing other support services in order to boost the development of small enterprises in manufacturing and services sectors.
NSIC facilitates sustainable international partnerships. The emphasis is on sustainable business relations rather than on one-way transactions. Since its inception, NSIC has contributed to strengthening enterprise-to-enterprise cooperation and sharing best practices and experiences with other developing countries, especially those in the African, Asian and Pacific regions. The features of the scheme are:
- Exchange of Business / Technology missions with various countries.
- Facilitating Enterprise to Enterprise cooperation, JVs, Technology Transfer & other form of sustainable collaboration.
- Explore new markets & areas of cooperation.
- Identification of new export markets by participating in sector- specific exhibitions all over the world.
- Sharing of Indian experience with other developing countries
INTERNATIONAL CONSULTANCY SERVICES
For the last five decades, NSIC has acquired various skill sets in the development process of small enterprises. The inherent skills are being networked to offer consultancy services for other developing countries. The areas of consultancy are as listed below:
- Capacity Building
- Policy & Institutional Framework
- Entrepreneurship Development
- Business Development Services
Visit nsic.co.in for more details
Increasingly, the main concern has been that the compliance burden should not weigh down businesses from expanding, and at the same time, th...
By CA Atul Donde (as published in TISA Dec 2019 issue) Form filling is only step one for a loan One of my MSME clients prepared the loan ...