The Changing World of Small and Med...
Small and Medium Enterprises (SME) are classified based on investment capital entity. It unders...
NSIC or National Small Industries Corporation, an ISO 9000 certified company, has been functioning in order to fulfil its mission of promoting, aiding and facilitating the growth of the small scale industries and industry related to small services/ businesses. There are various roles played by this corporation which is discussed in this article.
The National Small Industries Corporation was constituted in 1955 as part of the central government undertaking with the primary objective to fulfil the machinery and equipment requirements for the development of small entrepreneurs. It was observed that the major roadblock faced by entrepreneurs is the shortage of investible funds to buy machinery and equipments. Lack of funds deprives many entrepreneurs to avail entrepreneurial opportunities.
Therefore this corporation was established to meet this requirement of the entrepreneur. It provides equipment, plant and machinery on a hire-purchase basis. Under this, entrepreneurs can procure indigenous and imported machinery. With NSIC Registration, entrepreneurs can procure government orders for various items of stores.
New entrepreneurs are provided with special incentives. For imported machinery, the entrepreneur should abide by the provisions of the import policy of the government. Entrepreneurs must secure license for such import. In certain cases, entrepreneurs have to make prototypes of the machines.
Over time and transition, this corporation has proved its worth within the country and abroad. It promotes modernization, quality consciousness, strengthening linkages with large and medium enterprises and enhances export projects and products from small scale enterprises.
The policy guidelines to the National Small Industries Corporation are provided by the Board of Directors comprising of a full time chairman cum Managing Director, two functional directors, one SIDBI Nominee Director, two Government Nominee Directors and six non-official part time directors. The corporation is taken care of by the dedicated team of professionals at various levels. It functions through 123 offices located all across India and one office in South Africa.
The National Small Industries Corporation functions through its 9 zonal offices, 33 branch offices, 14 sub offices, 10 Business Development Extension Offices, 5 technical services centres, 3 extension centres and 2 software technology parks supported by a team of more than 500 professionals across the country.
The different types of schemes are as follows:
The objective to implement this scheme was to increase the level of government purchases from the Small Scale industries.
This scheme aims to build trust and independent third party opinions about the credit worthiness and competence of MSEs. This scheme also makes credit available at low interest rates.
This scheme aims to provide support to the MSME industry by financing their purchase of raw materials for imported and indigenous products. It provides an opportunity for MSMEs to emphasise on manufacturing or producing quality products.
This scheme is a B2B portal. It was initiated with the objective to provide technology and financial assistance to MSMEs at affordable prices.
All MSMEs registered under the scheme are offered various level of skill and development training and technical support as well. These trainings are provided at the Technical Services Centres.
The major objective of this scheme is to promote products manufactured and produced by MSMEs.
Now let us discuss the principal subject of this article, i.e., the role of NSIC. There are various roles for this corporation. Below we have discussed some of them:
NSIC also provides small enterprises the following support services through its technical services centres and extension centres:
It is worth mentioning here that NSIC also plays the role of organizing supply of raw materials such as cola, steel, iron etc required by SMEs by mediating with other governmental companies such as the Coal India Limited, Hindustan Copper Limited and such other companies who produce these materials to provide the same at concessional prices to the SMEs.
Recently it has also started providing help by setting up incubation centres and international technology fairs to help emerging small businesses to get some exposure in this regard.
The National Small Industries Corporation has a significant position among the institutions set up to assist small scale industries, and it has been working to complete its mission of helping, promoting and fostering the growth of Micro, Small and Medium Enterprises in the country. Therefore the role of NSIC is critical for the development of small industries.
Read our article: Single Point Registration Scheme of NSIC: A Complete Checklist