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Introduction

National Small Industries Corporation (NSIC), is an ISO 9001-2015 certified Government of India Enterprise under the Ministry of Micro, Small and Medium Enterprises (MSME). The primary objective of NSIC is to promote, aid and foster the growth of micro, small and medium enterprises in the country. NSIC has a wide network of offices and Technical Centres across the country through which it operates and supports the MSME entities. It has also set up Training cum Incubation Centres managed by professional manpower for the benefits of its beneficiaries.

What does NSIC do?

NSIC is set up with the objective of promoting and supporting Micro, Small & Medium Enterprises (MSMEs) Sector by providing cohesive support services encompassing Marketing, Technology, Finance and other services. It supports deserving MSMEs with various services like credit support, technological assistance, marketing strategies and providing enhanced Government connectivity services.

The benefits of NSIC are offered through the following channels: 

Credit Support: 

  • RMA against Bank Guarantee
  • Credit Facilitation through Bank
  • Bill Discounting

Marketing Support: 

  • Consortia & Tender marketing
  • Single Point Registration
  • Infomediary Services
  • Marketing Intelligence
  • Space Marketing

Other Supports: 

  • National SC and ST Hub
  • Infrastructure
  • Exhibition & Event Management
  • Procurement & Marketing Support
  • ASPIRE

Raw Material Assistance (RMA) against Bank Guarantee

  • This scheme aims at helping MSMEs through finance support for the purchase of Raw Material (both indigenous & imported) for up to 180 days.
  • This allows the MSMEs to concentrate on manufacturing quality products. 
  • MSMEs can avail Economics of Purchases like bulk purchase, cash discount etc.
  • Interest rates on the credit facility is from 9.5% up to 11%.
  • Duly filled application form to be submitted at designated banks. 
  • Application forms are available on the NSIC website or at the banks.

Credit Facilitation Through Bank

  • This scheme is primarily to provide credit support to MSME units through a Memorandum of Understanding with various Nationalized and Private banks in the country.
  • NSIC also facilitates MSME in accessing credit support, both fund based and non-fund based limits, from the banks.
  • NSIC also offers assistance in completion of the documentation for submitting the proposals to the banks and even follows up with the banks.

Bill Discounting Scheme

  • This scheme will cover Bill Discounting of genuine trade transactions i.e. supplies made by Micro, Small and Medium Enterprises (MSMEs) to reputed Public Limited Companies / State and Central Government Departments / Undertakings / Private Limited Companies (not traders), engaged in manufacturing / service activities.
  • Purchaser unit may approach NSIC for sanction of annual limits by furnishing relevant information pertaining to their trade on the respective application forms.
  • The maximum usage period of the bills (Bill of Exchange) shall not exceed 180 days.
  • Security in the form of Bank Guarantees issued by approved banks equivalent to the value of assistance. Personal guarantee of proprietor, partners of firms and Directors of the company shall also be sought.
  • Discounting rates range from 8.5% to 10%

Consortia and Tender Marketing

  • Scheme shall cover Micro & Small Enterprises registered with NSIC under its Single Point Registration Scheme (SPRS).
  • It facilitates Micro and Small Enterprises to market their goods / services individually or collectively through ‘Consortium’.
  • The Consortia is made of MSMEs supplying the required stores / items and rendering the services as required by the Govt. Depts. / PSUs.
  • The scheme takes care of providing EMD and security deposit to eligible entities.
  • The primary objective of this scheme is the formation of Consortium, Capacity Building of MSEs by formation of consortia of the units manufacturing similar products, participation in tenders on behalf of units in a ‘consortia’ to secure orders in ‘bulk’ quantities, distribution of orders amongst units in a ‘consortia’ as per their capacities, facilitate the ‘consortia’ members in meeting their raw materials requirements & facilitating ‘Credit’ for the supplies made.

Single Point Registration

  • NSIC facilitates an important function of registering Micro & small Enterprises (MSEs) under Single Point Registration scheme (SPRS) for participation in Government Purchases.
  • The Government is the single largest buyer of a variety of goods. The Government Stores Purchase Programme was launched in 1955-56 with the objective of increasing the share of purchases from the small-scale sector
  • All Micro & Small Enterprises having EM Part-II (Optional)/ Udyog Aadhaar Memorandum (UAM) are eligible for registration with NSIC under its Single Point Registration Scheme (SPRS).
  • Micro & Small Enterprises who have already commenced their commercial production but not completed one year of existence are also eligible.
  • Applicants can apply online on the NSIC website or on the prescribed application form and submit it to the concerned Zonal/Branch Office of NSIC located nearest to the unit.
  • This scheme provides Issue of the Tender Sets free of cost
  • Members registered under the scheme are exempted from payment of Earnest Money Deposit (EMD)

Infomediary Services

  • NSIC Infomediary Services is a one-stop, one-window bouquet of support that will provide information on business, technology and finance
  • It helps you exhibit the core competency of your business unit through digital presence
  • Support is offered through its MSME Global Mart website; which is a Business to Business (B2B) web portal.
  • The services are available through an Annual Membership.
  • Helps you connect with buyers and suppliers globally. 
  • Free Membership for SC/ST Entrepreneurs for one year

Marketing Intelligence

  • The Marketing Intelligence Cell acquires and processes information in order to provide a perspective both to existing and potential customers.
  • The information can be used TO determine various business aspects like the current and future needs and preferences, attitudes and behaviour of the market; and to assess changes in the business environment that may affect the size and nature of the market in the future.
  • The goal is to promote business horizons of MSMEs of India through Marketing Intelligence Web Portal.
  • MSMEs seeking business collaboration and co-production opportunities, joint ventures, exporters and importers, and those looking for technology transfer benefit the most from this.

National Scheduled Caste and Scheduled Tribe Hub

  • To create a supportive ecosystem towards SC/ST entrepreneurs.
  • It will provide professional support to the SC/ST enterprises and enable them to effectively participate in the public procurement process.
  • It would also work towards the development of new entrepreneurs to participate in the procurement process under the ‘Stand up India’ programme.
  • All new and existing SC/ST entrepreneurs would be registered on the MSME Databank of the Ministry of MSME that would form a reliable database to enhance accessibility for the procurement agencies.

Procurement & Marketing Support Scheme

  • This is to enhance the marketability of products and services in the MSME sector.
  • This scheme aims at promoting new market access initiatives like organising / participation in National /International Trade Fairs / Exhibitions I MSME Expo etc.
  • It also aims to create awareness and educate the MSMEs about the importance / methods / process of packaging in marketing, latest packaging technology, import-export policy and procedure, GeM portal, MSME Conclave, latest developments in international / national trade and other subjects I topics relevant for market access developments.
  • It does these by creating more awareness about trade fairs, bar code, digital advertising, e-marketing, GST, GeM portal, public procurement policy and other related topics etc.
  • Eligible participants include Manufacturing / Service sector MSEs registered at Udyog Aadhar Memorandum (UAM) Portal.

ASPIRE

  • The scheme aims to create new jobs and reduce unemployment
  • To promote entrepreneurship culture in India
  • To aid grassroots economic development at district level
  • To facilitate innovative business solution for unmet social needs
  • To promote innovation to further strengthen the competitiveness of MSME sector
  • Collaborate with the “Make in India” scheme which seeks to identify and create a favourable eco-system for encouraging the start-ups
  • It strives to drive the manufacturing domain with sustained employment opportunity creation
  • It works towards raising the level of skilling for successful and sustainable enterprise creation
  • The scheme aims to achieve this by providing the necessary skill set for setting up business enterprises
  • It wants to facilitate the market linkages available to the entrepreneurs
  • It also works to provide hand holding for a critical period to ensure self-sustainability

National Small Industries Corporation FAQs

1. How do I avail support through NSIC for my MSME business unit?

Support under the various schemes of NSIC can be availed by submitting the relevant application form. Application forms are available on the NSIC website or at the nearest NSIC Centres.

2. What is the purpose of NSIC?

NSIC was established with the objective of providing various services to the MSME sector. It offers both fund-based and non-fund based support to eligible entities.

3. Who can avail assistance under the RMA Scheme?

Any manufacturing MSME having Udyog Aadhaar Memorandum (UAM) can apply for the assistance under the Scheme.

4. How do I avail loans under the Bank Credit Facilitation Scheme?

Eligible MSME Units can approach any of the NSIC branch offices directly and submit their request for loan requirement from any of the banks with a tie up agreement. The official at the branch will also provide hand holding support by assisting in completing all documentation as required for further submission to the bank.

5. What is an NSIC certificate?

An NSIC certificate or registration helps you to promote your MSME unit through a Single Point Registration for Government purchase and credit rating scheme for small industries.

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