National Small Industrial Development Corporation9th October 2022 0 By indiafreenotes
National Small Industries Corporation Limited (NSIC) is a Mini Ratna government agency established by the Ministry of Micro, Small and Medium Enterprises, Government of India in 1955 It falls under Ministry of Micro, Small & Medium Enterprises of India. NSIC is the nodal office for several schemes of Ministry of MSME such as Performance & Credit Rating, Single Point Registration, MSME Databank, National SC ST Hub, etc.
Government of India to promote small and budding entrepreneurs of post independent India, decided to establish a government agency which can mediate and provide help to small scale industries (SSI). As such they established National Small Industries Corporation with objectives to provide machinery on hire purchase basis and assisting and marketing in exports. Further, SSIs registered with NSIC were exempted from paying Earnest money and provided facility of free participation in government tendered purchases. Also, for training persons the training facilities centres and for providing assistance in modernising the small industries several branches of NSIC were opened up by government over the years in several big and small towns, where small industries were growing.
NSIC also helps in organising supply of raw materials like coal, iron, steel and other materials and even machines needed by small scale private industries by mediating with other government companies like Coal India Limited, Steel Authority of India Limited, Hindustan Copper Limited and many others, who produce these materials to provide same at concessional rates to SSIs. Further, it also provides assistance to small scale industries by taking orders from Government of India owned enterprises and procures these machineries from SSI units registered with them, thus providing a complete assistance right from financing, training, providing raw materials for manufacturing and marketing of finished products of small-scale industries, which would otherwise not be able to survive in face of competition from large and big business conglomerates. It also helps SSI by mediating with government owned banks to provide cheap finance and loans to budding small private industries of India.
Nowadays, it is also providing assistance by setting up incubation centres in other continents and also international technology fairs to provide aspiring entrepreneurs and emerging small enterprises a platform to develop skills, identify appropriate technology, provide hands-on experience on the working projects, manage funds through banks, and practical knowledge on how to set up an enterprise.
Schemes of NSIC
National Small Industries Corporation facilitates MSMEs with specially tailored scheme to build and improve their competitiveness. National Small Industries Corporation provides complete integrated services under Finance, Marketing, Technology and another allied Support service.
Marketing support has been considered as one of the most important tools for the development of any business. It is crucial for the survival and growth of Micro, Small and Medium Enterprises in today’s intensely competitive market. National Small Industries Corporation devised numerous of schemes to support enterprises (both domestic and foreign markets) in their marketing efforts. These schemes are briefly described as under:
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.
Disseminate and collect both international as well as domestic marketing intelligence for the benefit of Micro and Small Enterprises. This Marketing Intelligence cell, apart from to spreading awareness about several schemes for MSMEs, will maintain a database in detail and distribute information.
Exhibitions and Technology Fairs
To showcase the core competencies of Micro and Small Enterprises in India and to capitalize market opportunities, National Small Industries Corporation participates in National and International Trade Fairs and Exhibitions every year. National Small Industries Corporation facilitates the participation of the MSEs by offering concessions in rental etc. Participation in these national and international events exposes Micro and Small Enterprises units to international practices and improves their business competencies and prowess.
National Small Industries Corporation enables credit requirements of MSEs in the following areas:
Financing for Raw Material Procurement
The scheme framed by National Small Industries Corporation for the assistance of Raw Material helps MSEs by way of financing the procurement of Raw Material (both indigenous & imported). The salient features are as follows:
- Bulk purchase of basic raw materials at competitive rates.
- Financial Assistance for Raw Materials procurement up to 90 days.
- National Small Industries Corporation facilitates import of scares raw materials.
- National Small Industries Corporation takes overall care of all the documentation, procedures and issuance of a letter of credit in case of imports.
Financing for Marketing Activities
National Small Industries Corporation provides assistance in the financing of marketing actives such as Exports, Internal Marketing and Bill Discounting.
Finance Through Syndication with Banks
To make the sure smooth flow of credit to MSEs, National Small Industries Corporation enters into strategic alliances with several commercial banks to facilitate working capital/ long-term financing of the MSEs across the country. The engagement foresees forwarding of loan applications of the interested MSEs by National Small Industries Corporation to the banks and sharing the processing fee.