National Small Industries Corporation (NSIC): Roles & Responsibilities
NSIC are certified Government Enterprises under the Ministry of Micro, Small and Medium Enterprises (MSME). They play an important role in growth of such Micro Small and Medium scale industries. Their network is spread countrywide to fulfill their mission to promote MSMEs by providing integrated support services encompassing technology, Marketing, Finance and other helpful services.
To know about them in detail, let’s have a look at their roles and responsibilities towards MSMEs and SSIs.
Roles and Responsibilities of NSIC
NSIC provides wide range of support services to the MSMEs that are described as follows:
Marketing is no doubt a strategic tool that enhances business development. NSIC acts as a facilitator to promote the products and services provided by these small scale industries and have devised a number of schemes to support them in their marketing efforts. Some f those schemes are as follows:
- Consortia and Tender Marketing:
Under this scheme NSICs adopts Consortia approaches and forms consortia of similar units manufacturing to ease to the marketing problems faced by small scale industries. NSIC registration explores the market and take bulk orders and supply it to small enterprises according to their production capacity.
- Single Point Registration for Government Purchase:
Under this scheme the registered SSI units get privileges like purchase preference in Government Purchase Programs, exemption from payment of the Earnest Money Deposit, free of cost tenders, advance intimation of tenders and many more.
- Concession of Exhibitions and Technology Fairs:
Every year these small scale industries take part in various International and National Exhibitions and Trade Fairs. It is a great opportunity for these industries to showcase their competencies and to grab market opportunities. NSIC facilitates their participation by providing concessions in rental, etc.
NSIC provides credit support to MSMEs and SSI in the below given areas:
- Equipment Financing:
These corporations help MSMEs by securing loans for purchase of equipment and machinery.
- Raw Material Assistance Scheme:
Under this NSIC helps small-scale industries by providing a way of financing for the purchase of raw material. Some of the features of this scheme are given as follows:
- Provides financial assistance for procurement of raw materials.
- It facilitates the import of scarce raw materials.
- Helps in purchase of bulk raw material at low rates.
- Tied up with Commercial banks:
Credit is a chief requirement for MSME. To fulfill this requirement NSICs have tied up with various commercial banks for sanction of term loans and capital facilities according to the convenience of the small scale enterprises.
- Performance and Credit Rating Scheme for Small Industries:
Under this scheme, NSIC helps small enterprises to overcome their weakness and ascertain their strengths and take some important measures to enhance their organizational strength. This scheme is operated through some very well known agencies like ICRA ONICRA, CARE, SMERA and CRISIL.
- Financing of Marketing Activities:
NSIC facilitates various marketing financing activities such as Exports and Bill Discounting, internal marketing and finance through banks. Moreover, NSIC are entering into strategic alliances with commercial banks to ensure smooth flow of credit to such small scale enterprises.
- Advising new techniques for new applications.
- Product designing including CAD.
- Provides environment and energy services at some selected centers.
- Provides practical training to upgrade the skills of the laborers.
- Machinery support services.
- Material testing facilities.
NSIC Corporation plays a vital role in serving small scale industries in India. They have launched various schemes to facilitate the working of such industries in terms of credit, technology and marketing strategies. Only registered MSMEs are liable to take such advantages offered by MSMEs.