NATIONAL SMALL INDUSTRIES CORPORATION LTD. (NSIC)

The National Small Industries Corporation Ltd. was established in 1955 by the Government of India with a view to promote, aid and foster the growth of small industries in the country. NSIC continues to remain at the forefront of industrial development throughout the country with its various programmes and projects to assist the small-scale sector in the country. Recent transitions of industrial climate and liberalisation of the total economic environment within the country and international arena has witnessed the tremendous changes in the domestic as well as international markets. These sudden changes have thrown up as many opportunities as challenges to the small-scale enterprises in the country.

The NSIC is directly operating different programmes by professionals through 8 regional offices, 5 Technical Service Centres, 2 foreign offices, 2 Software Technology Parks, 17 branch offices located in almost all the States and 3 Technical Services Extension Centres.

Major Schemes

Composite Term Loan Scheme

To promote small-scale sector, NSIC has launched a Composite Term Loan Scheme for the benefit of existing and prospective entrepreneurs to acquire land and building, machinery and equipment and working capital under one roof to the tiny units.

Machinery and Equipment

Hire Purchase Scheme

• Supply of indigenous and imported machinery and equipment on easy financial terms.
• Mainly targeted on first generation entrepreneurs.
• Special focus on women entrepreneurs, weaker sections, handicapped and ex-servicemen and SC/ST entrepreneurs.
• Creating a sound and formidable and entrepreneurship base.
• Faster growth and employment.

Equipment leasing

• Mainly to facilitate SMEs to expand their capacities or diversify and/or upgrade their technology according to the needs of the market which has become buyer’s market because of openings of economies.
• 100% finance.
• Single window for indigenous/imported machinery.
• Tax rebate on full-year rental.
• Increases in productivity.

Working Capital Finance

This Scheme aims at augmenting working capital of viable and well managed units, on selective basis in case of emergent requirements to enable them to pay-off their purchase of consumable stores, spares and production related overheads particularly electricity bills, statutory dues.

The procedure involves:-

• Submission of application forms
• Preliminary appraisal and unit inspection by NSIC.
• Sanction.
• Signing of Agreement
• Availing of facility by SSI.

Raw Material Assistance

• Small units need not block the funds in storing raw materials in bulk.
• Facilitates availability of raw materials on "off the shelf basis".
• Facilitates import of scarce materials.
• MOUs with NALCO, MALCO, facilitates SSIs to get scarce materials on priority.
• Raw materials Depots/Godowns in different parts of the country.

Marketing Support Programme

Marketing, though, is essentially an entrepreneurial function, yet in today’s economic liberalisation period institutional support is needed to the SMEs in this area as they are now facing challenges in marketing their goods and services because of intense competition from the transnational and the multinational companies who have started operations and some more are likely to operate in India in the near future. NSIC, therefore, has been acting as a facilitator to promote SMEs, to bear the onslaughts of such an open economy. NSIC has, over a period, devised a number of innovative programmes for the support of SMEs in the field of marketing, both in and outside the country. In the post-independence period, Government and its agencies, have been the largest buyers of various types of products and services and NSIC has been trying to act as a nodal agency to bring SMEs closer to various Governmental purchasing agencies, with the intention of creating confidence in the purchasing agencies about SMEs, and their capabilities to supply goods and services of requisite quality, economic prices and adherence to agreed deli every schedules.

Tender Marketing

Participation by NSIC in bulk local/global tender on behalf of Small Scale Industries/Enterprises

It is aimed at assisting SSIs with the ability to manufacture quality products but which lack brand equity & credibility or have limited financial capabilities.

Small Scale Industries/Enterprises should be registered with Directorate of Industries/District Industries Centre to gain eligibility.

The benefits to these units are:-

• SSIs provided with all requisite financial support depending upon the units individual requirements like purchase of raw material and financing of sale bills.
• Enhanced business volume helps SSIs achieve maximum capacity utilisation.
• SSIs are exempted from depositing earnest money.
• SSIs helped to participate in large & global tender upto its capacity and capability.
• SSIs assisted technically for equality upgradation and new product development in addition to testing facility.
• Ensures fair margin to SSIs for their production.
• Publicity to small industries products.
• Production of quality products from the SSI sector.

Integrated Marketing Support

NSIC has been operating an Integrated Marketing Support Programme in which bills pertaining to supplies made by small scale units to eligible purchasers are discounted by NSIC upto a certain specified limit. The scheme has been introduced with a view to mitigate the problem of delayed payment by buyers against supplies made by small sclae units.

Government Stores Purchase Programme

This Programme was initiated in 1955-56 with a view to assist the small scale industries in obtaining a fair share of the total purchases made by the Government and its departments in cluding the public sector undertakings and State Governments. The main objective of this programme is that SSI units will in the process be oriented to produce goods in conformity with the standards laid down by the buying agencies.

One of the important elements of the Government Stores Purchase Programme is the registration of units by NSIC as eligible to execute Government orders. The scheme has been in operation since 1956, which was modified in 1976 and came to be known as the "Single Point Registration Scheme" with a view to do away with the multiplicity of registration with individual purchase organisations. The units registered with the Corporation for participation in government purchase programme are considered at or with individual purchase organisations and derive all the benefits like free supply of tender forms, exemption from payment of earnest money, security deposits, etc.

Technology Upgradation

Excellent technical support to SSIs/SMEs through five NSIC-Technical Service Centres, a number of NSIC Technical Services Extension Centres and a number of sub-centres.

These training centres provide the following services:-

• Technically trained manpower in traditional and advanced trades.
• Assistance in development of commercially viable prototypes.
• Testing facilities.
• New technologies and modification of existing prototypes to take care of emerging trends in manufacturing technology.
• New machines and equipment for leather working and agricultural appliances.
• These centres have been recognised by Council of Scientific and Industrial Research for in-house R&D.

Technology Transfer Centres

With a view to provide a proper guidance to small scale units to access current information in connection with the technology upgradation and for dissemination amongst the other small and large-scale enterprises spread all over India and abroad, NSIC has set up a Technology Transfer Centre. The latest information is provided to on-line connections and networks of computers on matching technology seekers and technology providers is arranged through the Technology Transfer Centre.

Software Technology Parks

NSIC has set up a NSIC-STP Complex under Software Technology Parks of India (STPI). Software Technology Parks facilitates small scale units to establish their units for the 100% export of software and also act as the nodal point to activate software exports directly through NSIC.

NSIC-STP Complex at Okhla, New Delhi is one of such Parks set up by the National Small Industries Corporation under the Software Technology Parks of India to promote small entrepreneurs in software development. NSIC-STP provides high speed better communication facilities through VSNL/SATCOM networks, built-up office space, uninterrupted power supply, back-up power through DG sets, a modern business centre and other administrative support.

Exports

NSIC is providing a complete package of export assistance, testing facilities, pre-shipment credit facility, export incentives etc. apart from exposure to the products of SSEs in trade fairs, buyer and seller meets etc. In addition to this, NSIC also helps the units in procurement of samples, development of counter samples and in negotiations for first business deals with foreign buyers.

Special Export Programme-UN Supplies

The Corporation has been endeavoring to increase share of Indian industries in purchases to United Nations Organization, it being the largest single buyer in the world. NSIC has already prepared a roster of potential suppliers of goods and services from India, which enabled it to emerge on top as supplier among the developing countries. NSIC organizes a number of seminars and workshops in association with different UN-Stores Purchasing Agencies to disseminate information to SME's on UN-Stores Purchase Procedures and Mechanism.