How does National Small Industries Corporation help Micro, Small, and Medium Enterprises

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How does National Small Industries
Corporation help Micro, Small, and Medium
Enterprises
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Introduction

• National Small Industries Corporation (NSIC), is
  an ISO 9001-2008 certified Indian government
  venture under the Ministry of Micro, Small and
  Medium Enterprises (MSME). NSIC has worked to
  promote aid and foster the growth of micro, small
  and medium-sized enterprises in the country. NSIC
  operates through a national network of offices
  and technical centres in the country. To
  administer operations in African countries, NSIC
  operates from its office in Johannesburg, South
  Africa. In addition, NSIC has established a
  training and incubation centre run by
  professional manpower.
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Introduction
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NSIC schemes and Marketing support

• NSIC schemes SIC facilitates micro, small and
  medium-sized enterprises with a series of
  tailor-made schemes to improve their
  competitiveness. NSIC provides integrated support
  services in Marketing, Technology, Finance and
  other support services.
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• Marketing support Marketing has been recognized
  as one of the most vital tools for business
  development. It is critical to the growth and
  survival of MSMEs in today's highly competitive
  market. NSIC acts as a facilitator and has
  devised a number of schemes to support businesses
  in their marketing efforts, both domestically and
  abroad. These schemes are briefly described as
  below

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Consortia and Tender Marketing

• Consortia and Tender Marketing Small firms in
  their individual capacity face large order
  procurement and execution problems, which deny
  them a level playing field compared to large
  firms. NSIC forms consortia of micro and small
  units that manufacture the same product, thus
  combining their capabilities.
• NSIC applies tenders on behalf of individual MSEs
  / MSE Consortia to secure orders for them. These
  orders are then distributed among the MSEs in
  line with their production capacity.
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Single point registration for government purchase

• Single point registration for government
  purchase Units which are registered under NSIC's
  Single Point Registration Scheme are entitled for
  remuneration under "Public Procurement Policy for
  Micro Small Enterprises (MSEs) Order 2012", as
  notified by the Government of India, Ministry of
  Micro Small Medium Enterprises, New Delhi saw
  Gazette Notification of 23.03.2012.Free issue of
  Tender Sets Earnest Money, Deposit (EMD) payment
  exemption, Participating MSE offers quoting the
  price within the price range of L1 15 will
  also be allowed to supply a portion of up to 20
  of the requirement by lowering their price to
  Price L1 where L1 is not MSE.
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• All Ministries / Departments / Central PSUs will
  set an annual target of at least 20 of the total
  annual purchases of products or services produced
  or rendered by MSEs. Of the 20 annual supply
  requirement from MSE, 4 is allocated to the
  units owned by Schedule Caste / Schedule Tribes
  (as per PPP Ordinance of 23.03.2012 the general
  procurement target will be mandatory, e.g. 01/04
  / 2015)

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Marketing Intelligence

• With increasing competition and the melting of
  international borders, the demand for information
  is reaching new heights. NSIC, realizing the
  needs of MSMEs, offers Info media
• Marketing Intelligence Collect and disseminate
  both national and international marketing
  information for the benefit of MSMEs. This cell,
  in addition to spreading awareness on the various
  programs / schemes for MSMEs, will in particular
  maintain the database and disseminate
  information.

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Meeting between buyer and seller

• Meeting between buyer and seller Wholesale and
  departmental buyers such as Railways, Defence,
  Communications and large corporations are invited
  to attend buyer-seller meetings to enrich small
  business knowledge of terms and conditions,
  quality standards, etc. Requested by the buyer.
  These programs are aimed at developing suppliers
  from MSME for wholesale manufacturers.
• Credit support NSIC facilitates small business
  credit requirements in the following areas
  Financing for the procurement of raw materials
  (short term)The NCI's Commodity Assistance
  Program aims to help small businesses by
  financing the purchase of raw materials (both
  native and imported). The salient features are
  Financial assistance for the procurement of raw
  materials up to 90 days, Wholesale purchase of
  basic raw materials at competitive prices, NSIC
  facilitates the import of scary commodities,NSIC
  handles all procedures, documentation and
  issuance of letters of credit in case of
  imports.

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Financing for marketing activities

• Financing for marketing activities (short
  term)NSIC facilitates the financing of marketing
  activities such as internal marketing, exports
  and invoice discounting.
• Finance through syndication with banks In order
  to ensure a smooth flow of credit to small
  businesses, NSIC is forging strategic alliances
  with commercial banks to facilitate long-term
  financing / working capital of small businesses
  across the country. The agreement provides for
  the forwarding of loan requests from the small
  businesses concerned by the NSIC to the banks and
  sharing the processing fee.

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Performance and credit rating scheme for small
industries

• Performance and credit rating scheme for small
  industries The need for a yield and credit
  rating mechanism for micro and small enterprises)
  was highlighted in the Union budget "04-05. A
  framework for micro and small enterprises was
  formulated in consultation with the Indian Banks'
  Association (IBA) and Rating Agencies NSIC has
  been appointed nodal agency for the
  implementation of this scheme through empanelled
  agencies.

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CONCLUSION

• Benefits of performance and credit rating An
  independent and reliable third-party opinion on
  the capabilities and creditworthiness of micro
  and small businesses, Availability of
  interest-bearing credit, Recognition in global
  trade, Timely credit sanctions by banks and
  financial institutions, Subsidized rating fee
  structure for micro and small enterprises.

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