Introduction

National small industries corporation Ltd. (NSIC), An ISO 9001 certified

company, since its establishment in 1955, has been working to fulfill its
mission of promoting, aiding and fostering the growth of business
enterprise in the country, since its establishment in 1955, has been working
to fulfill its mission of promoting, aiding and fostering the growth of small
scale industries and industry related small scale services /business
enterprises in the country. Over a period of five decades of transition,
growth and development, NSIC has proved its strength within the country
and abroad by promoting modernization, up gradation of technology,
quality conscious, strengthening linkages with large and medium
enterprises and enhancing exports project and products from small
industries. NSIC facilitates credit facilities to small-scale industries for their
technology modernization programmes and marketing activities through
Equipment Financing and Marketing Financing Schemes. Under the
Equipment Financing the Corporation is offering Term loan scheme and
Hire purchase Scheme. For financing the Marketing Activities (short term)
NSIC facilitates financing for marketing actives such as Raw Material
Assistance, Internet Marketing, Exports and Bill Discounting
NSIC operates through 6 Zonal Office, 26 Branch Office, 15 Sub Offices, 5
Technical Service Centers, 3 Extension Center and 2 Software Technology
Parks supported by team of over 500 professionals spread across the
country. To manage operations in Gulf and African countries, NSIC
operates from its offices in Dubai and Johannesburg
 Schemes and Activities of NSIC for Promoting
SSI

NSIC continues to implement its various programmes and projects

throughout the country to assist the SSI units. The Corporation has been
assisting the sector through the following schemes and activities:

a) Composite Term Loan Scheme

To promote small-scale sector, NSIC has launched a Composite Term
Loan Scheme for the benefit of existing and prospective entrepreneurs to
acquire land and building, machinery and equipment and working capital
under one roof to the tiny units.

b) Hire Purchase Scheme

Supply of indigenous and imported machinery and equipment on easy
financial terms with special focus on women entrepreneurs, weaker
sections, handicapped and ex-servicemen and SC/ST entrepreneurs.

c) Equipment leasing
It is done mainly to facilitate SMEs to expand their capacities or diversify
and/or upgrade their technology according to the needs of the market.
d) Working Capital Finance
This Scheme aims at augmenting working capital of viable and well
managed units, on selective basis in case of emergent requirements to
enable them to pay-off their purchase of consumable stores, spares and
production related overheads particularly electricity bills, statutory dues.

e) Raw Material Assistance

It facilitates availability of scarce raw material either through the domestic
market or by importing.

f) Marketing Support Programme

NSIC has been trying to act as a major agency to bring SMEs closer to
various Governmental purchasing agencies, with the intention of creating
confidence in the purchasing agencies about SMEs, and their capabilities
to supply goods and services of requisite quality, economic prices and
adherence to agreed delivery schedules.

g) Tender Marketing
It participates in bulk local/global tender on behalf of Small Scale
Industries/Enterprises. It is aimed at assisting SSIs with the ability to
manufacture quality products but which lack brand equity & credibility or
have limited financial capabilities.
h) Integrated Marketing Support
NSIC has been operating an Integrated Marketing Support Programme in
which bills pertaining to supplies made by small scale units to eligible
purchasers are discounted by NSIC up to a certain specified limit.

i) Government Stores Purchase Programme

The units registered with the Corporation for participation in government
purchase programme are considered at or with individual purchase
organizations and derive all the benefits like free supply of tender forms,
exemption from payment of earnest money, security deposits, etc.

j) Technology Upgradation
Excellent technical support is provided to SSIs/SMEs through five NSIC
Technical Service Centres. These centres have been recognised by
Council
of Scientific and Industrial Research for in-house R&D. NSIC has set up a
Technology Transfer Centre. The latest information is provided to on-line
connections and networks of computers on matching technology seekers
and technology providers are arranged through the Technology Transfer
Centre.

k) Software Technology Parks

NSIC has set up a NSIC-STP Complex under Software Technology Parks
of India (STPI). Software Technology Parks facilitates small scale units to
establish their units for the 100% export of software and also act as the
major point to activate software exports directly through NSIC. NSIC-STP
Complex at Okhla, New Delhi is one of such Parks set up by the National
Small Industries Corporation under the Software Technology
Parks of India to promote small entrepreneurs in software development.
NSIC-STP provides high speed better communication facilities through
VSNL/SATCOM networks, built-up office space, and uninterrupted power
supply, back-up power through DG sets, a modern business centre and
other administrative support.

l) Exports
NSIC is providing a complete package of export assistance, testing
facilities, pre-shipment credit facility, export incentives etc. apart from
exposure to the products of SSEs in trade fairs, buyer and seller meets etc.
The Corporation has been endeavoring to increase share of Indian
industries in purchases to United Nations Organization, it being the largest
single buyer in the world.

Imformediary services
Information today is becoming almost as vital as the air we breathe. We
need it every minute of our working lives. And with the increase in
competition and melting away of international boundaries, the demand for
information is reaching new heights.
Keeping in mind the information needs of small industries NSIC has
launched its “Informediary Services”. A one-stop, one-window bouquet of
aids that will provide information on business, technology and finance, and
also exhibit the core competence of Indian SMEs in terms of price and
quality-internationally, as well as domestically.
NSIC’s Infomediary Services use a professionally managed HR base and
modern technology for dissemination of vital information-websites, sector-
specific newsletters (both print and electronic), and e-mails. Potential
A
beneficiaries would be entrepreneurs-both existing and aspiring-R&D
cc
labs, SMEs seeking business collaboration and co-production
es opportunities, joint ventures, exporters and importers, and those
looking for technology transfer.
s
Salient Features
to
Tender Information in your e-mail box and web based browsing
N Banner display on NSIC’s Website
SI Concessions on Apollo Hospitals Medical Facilities.
C’ Access to a wide range of technologies from India and abroad.
s Access to national and international business leads, JV opportunities
and trade information.
B
Information on Trade and events
us
Comprehensive information on Government policies, rules and
in regulations, schemes and incentives.
es Access to industrial databases and members’ directory.
s
C Access to NSIC’s Business Centre with facilities such as conference

en hall, fax, telephone, photocopy and A/V aids

tr
e
wi Access to Infomediary services is through NSIC Infomediary Services
th (IS) membership at a cost of Rs. 5000/- (Five Thousand Only.
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 Changing Role Of NSIC

NSIC has changed its business strategies in order to serve the SSI more
bettering accordance with the MSMED Act, 2006. For this NSIC is setting
up the necessary infrastructure to meet the increasing requirements of
these sub-sectors. NSIC has drawn a strategy to assist this small
enterprise to enhance there competitiveness with a set of tailor schemes,
NSIC introduce many new scheme for development of small enterprises
from time to time with reference to change in economy.
The following initiatives show a determination of the corporation to reach
out to the small enterprises for providing them the services at the doorstep.

New initiative of NSIC

1. Incubation of unemployed youth for setting up new

small enterprises

To decrease the rate of unemployment, NSIC is setting up incubators

which would help unemployed people to become entrepreneur. This
incubator provides support services like practical training on machines/
projects, helping in preparation of their project reports, providing training,
seeking government approvals, identification and procurement of plant
and machinery, help in accessing credit from banks/ financial institutions
and providing marketing support including raw material sourcing.
The objectives of incubation programme are as follows:-
• Self employment generation among aspiring entrepreneurs.
• Providing integrated support by way of practical training on working
projects.
• Complete hand holding and accelerating the development of new
small enterprises.

NSIC has established business incubators in the fields of information

technology and general product manufacturing and service sector. The
incubation programme provides complete hand holding support in terms
of entrepreneurship training, sourcing of technology, preparation of
projects report, facilitating credit from banks/ financial institutions,
marketing support, obtaining Government’s approvals etc. the first two
incubators have been set up in NSIC’s Okhla campus at New Delhi
which facilitates incubation in form of- information technology and the
other in low cost projects like bricks manufacturing, wax candle
manufacturing, paper napkins, tomato ketchup, steel cutlery etc. these
also include certain service oriented small projects specially for women
like tailoring and fashion designing, painting and soft toys making.

The idea is to create self-employment through providing low cost

machinery/projects which could create employment for 2 to 5 persons
per project with an investment between Rs. 2 lakh to 10 lakh. NSIC has
planned to set up similar incubation centers in the major cities of the
country and two more already in the process of being set up in Howrah
and Guwahati.
1. I implementing of performance & credit rating for small
enterprise

On 7th of April, 2005 Honorable Union Finance Minister Shri P.

Chidambaram and Shri Mahabir Prasad Honorable Union Minister of
SSI & ARI, launched the scheme “Performance & Credit Rating
Scheme” formulated by NSIC.

NSIC is the implementing agency and operating the scheme through

accredited rating agencies i.e. CARE, CRISIL, D&B, FITCH, ICRA,
ONICRA and SMERA. The scheme has become quite popular now and
getting response from small enterprises.

A good rating enhance the acceptability of the rated unit in the market
and also facilitates them to make access to credit quicker and cheaper
and thus help in economizing the cost of credit.

2. Arranging credits need for SSI

One of the major challenges faced by the small enterprise is the non
availability of capital, due to lack of right imformation and non-formal
business practices. In the year 2005-06 NSIC introduce a scheme to
sanction loan to small enterprise through commercial banks. NSIC has
tie up with various banks for sanction of term loan and working capital
facilities to the small enterprises as per their requirement.
3. Insurance of export credit for small enterprises.

NSIC has entered, recently, into an arrangement with export credit

guarantee corporation of India Ltd.(ECGC) for facilitating small
enterprises to insure their export credits. Small enterprises would be
helped in insuring their export credits through any office of the
corporation, located all over the country. This arrangement shall
strengthen promotion of exports from small enterprises.

4. Reaching out to small enterprises

For the purpose of reaching out to the small enterprises, NSIC, during
the year 2006-07, singed MOUs with various industry associations
located all over the country. This arrangement with the industry
association/federation shall facilitate small enterprises in getting the
services of the corporation at their doorstep.

5. New infrastructure project to facilitate SMEs in marketing their

products.
NSIC is establishing a marketing-cum-Business park at Okhla, New
Delhi, and also developing an exhibition-cum-marketing development
business park at Hyderabad. A Laghu udyog mart is also being set up at
Okhla , New Delhi by utilizing the available space and erecting sufficient
number of hangers for exhibition purposes. This will help the SMEs in
enhancing their marketing avenues by way of capturing new markets
and expanding existing market.
6. International cooperation

For the last five decades, NSIC has acquires various skill sets in the
development process of small enterprises. The inherent skills are being
networked t o offered consultancy services for other developing
countries. This activities has been started during 2004-05 and is
expected to occupy a place in the future service profile of the
corporation. The areas of consultancy are capacity building, policy &
institutional Framework, Entrepreneurship Development and Business
Development services.

One of NSIC’s is to facilitate sustainable international partnerships. The

emphasis is on sustainable international partnerships. Since its
inception, NSIC has contributed to strengthening enterprise-to-
enterprise cooperation, sharing best practices and experience with other
developing countries. Important initiatives are through setting up of
institutional frameworks for the promotion of small enterprises

Conclusion
On the future outlook, increasing the reach of NSIC to a larger number of
micro and small enterprise and providing them the integrated support
services will be the main focus. It will be NSIC’s endeavor to strengthen
small enterprises to meet the demand of global competitiveness, which is
the key to the future of small enterprises in the present context.

We can now understand what are the various strategy and plans
implemented by NSIC for the development of SSI, and also their initiatives
towards the upliftment of SSI in India. Thus, making them one of the
corporations dedicating towards the welfare and development of society by
means of promoting young entrepreneur and decreasing the level of
unemployment through imparting guidance to unemployed youth through
their training programs.

Biblography
Books
• NSIC training booklet
• NSIC services booklet

Website
• www.nsic.co.in
• www.minstry of ssi india.co.in