What is NSIC? Know benefits, objectives and functions

Realising the fact that MSMEs are the backbone of the Indian economy, the government of India offers support to them in multiple ways. NSIC or National Small Industries Corporation was established to handhold and support emerging business throughout their journeys. NSIC runs under the Ministry of Micro, Small and Medium Enterprises (MSMEs) and operates through offices and Technical Centres located countrywide. It supports MSMEs in marketing, technology, finance, and so on. The purpose of NSIC is to foster growth of MSMEs in the country.

NSIC’s scheme and supporting services

NSIC offers various schemes, support services and training for new and aspiring entrepreneurs. Some of the offerings are mentioned below:

Credit facilities

One of the major challenges faced by MSMEs today is lack of funds. To resolve this challenge, NSIC has partnered with public and private sector banks. MSMEs can avail loan facilities from these banks. Additionally, NSIC helps MSMEs in documentation and also provides handholding support in submission of proposal to the banks.

Alternatively, MSMEs can also find financial support through the various MSME loan schemes by the government or seek low-interest business loans from banks and NBFCs.

Support in technology adoption

NSIC has its own Technical Service Centres and Extension Centres to help MSMEs in various ways. It offers following support to MSMEs:

• Guidance on new technology adoption
• Material testing through accredited laboratories
• CAD support for material testing
• Common facilities such as CNC, EDM, etc.
• Training and skill development

Incubation

NSIC’s scheme of Incubation of unemployed youth for setting up of New Micro & Small enterprises helps youth in various ways to set their businesses. One of the main aims of this programme is to create self-employment opportunities for the youth. NSIC offers services such as training for entrepreneurial skill development, selection of small projects, preparation of project profiles/reports, identification and sourcing of plant, machinery and equipment, helping with credit facility, etc.

This is one of the key focus areas of the government for driving innovation and sustainability in MSMEs. Along with the initiatives from the NSIC, there are several other schemes e.g., MSME Innovative scheme in India, ASPIRE scheme for MSMES, etc. that have been launched to support innovation.

Support to software development

NSIC has Software Technology cum Business Parks at new locations namely New Delhi and Chennai. They offer space to MSMEs in the segment of software development. NSIC Software Technology cum Business Park in New Delhi is located at Okhla Industrial Are and has space of approx. 53000 sq.ft. On the other hand, Chennai facility is at Guindy Industrial Estate.

Support in tenders

Often MSMEs get eliminated in the tendering process due to the lack of large manufacturing capacities. In such cases NSIC helps same product manufacturing companies to form consortia, so the capacities can be pooled in. NSIC also applies for tenders on behalf of the consortia to help in winning a contract. Once the contract is won, the order is distributed amongst the consortia members.

For MSME owners keen on eTendering opportunities, it is a good idea to keep a checklist for tender submission handy to work on tender responses and increase your chances of winning tender contracts.

Single Point Registration scheme (SPRS)

Micro and small enterprises (MSME) can register themselves under the Single Point Registration scheme (SPRS). The enlisted companies can avail various under Public Procurement Policy for Micro & Small Enterprises (MSEs) Order 2012 benefits. These benefits include:

• Tender sets at free of cost
• Exemption from payment of earnest money deposit (EMD)
• In a tendering process if the MSE is within the band of L1+15%, and if they are ready to bring the quotation down to L1, a portion order of up to 25% can be rewarded to them in case the L1 is non-MSE.
• Consortia facility

Web portal for MSMEs

NSIC offers infomediary services and helps MSMEs in India to establish digital presence. Through the MSMEs can buy annual subscription to the B2B web portal to avail the following services:

• Creating the company’s website
• Connecting with buyers and sellers in the domestic and global markets
• Providing information on relevant events and trade fairs
• Tender alerts
• Offering opportunities of franchise and distributionship
• Buying/selling used machinery, etc.

Helping MSMEs in trade fairs participation

NSIC participates in various domestic and international trade fairs. This gives opportunities to MSMEs to take part in the exhibitions and showcase their competencies. It helps them get exposure to new markets, understand market demand and trends, and learn international practices. Some of the offerings from NSIC in this regard include – concession in exhibition rentals, etc.

Marketing intelligence cell

NSIC has a marketing intelligence cell that gathers and information on domestic as well as international programmes, MSME schemes, etc.  Main objective of the cell is to spread awareness on various schemes for programmes and help MSMEs grow.

Buyer-seller meets

NSIC regularly organises Buyer-Seller Meets with government PSUs such as Railways, defence companies and other large companies. These meets help MSMEs understand the processes that PSUs follow, quality standards, other terms and conditions, etc. These events help MSMEs as they can get more knowledge on expectations from large organisations.

Financing for procurement of raw material

NSIC helps MSMEs in financing raw material sourced from domestic or global market. MSMEs can avail financial assistance for procuring raw material for up to 180 days. Alternatively, the NSIC enables MSMEs to avail economics purchases with bulk purchases and cash discounts.

Assistance in international cooperations

NSIC helps MSMEs in entering global markets, forging new partnerships and much more. It offers support in the following ways.

• Facilitating technology missions/technology transfers/joint ventures and other collaborations
• Identifying and exploring new markets
• Participating in international trade fairs
• Providing consultancy services

In a nutshell

NSIC helps MSMEs unleash their true potential in many ways. Right from the stage of incubation to credit facilitation and assistance in expansion, it does it all.