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BMS Institute of Technology & Management Yelahanka

Bangalore - 560064
Department of Information Science and Engineering

M&E SEMINAR REPORT

NATIONAL SMALL INDUSTRIES CORPORATION (NSIC)

Name of Guide: Chandrashekar K. T Date of Submission: 27/11/2018

Submitted by:
Ruchitha V – 1BY16IS037

MARKS: SIGNATURE
INTRODUCTION ABOUT INSTITUTIONAL SUPPORT:

 Starting a business or industrial unit requires various resources and


facilities.Finance has been an important resource to start and run an enterprise
since it facilitates the entrepreneur to procure land, engage labor, procure plant
and machinery, raw materials and others.
 Many small entrepreneurs, though have ideas and skills, are not able to start
any enterprise for the want of money. Hence Government has set up
institutions to help in financing the enthusiastic and skilled people to start an
enterprise and run it.
 SIDBI was started mainly for financial assistance to SSIs. Other organization
like SIDO, SSIB, SSIDC, NSIC etc., provide necessary assistance to SSI
units.
 Financial assistance and concessions could not overcome the difficulties of
infrastructure facilities like communication, transport, water, power, raw
material etc., involve large amount of funds which are not available in the
hands of small entrepreneurs.
 In view of this, various Central and State Government institutions have come
forward to help small entrepreneur by providing various facilities.
Institutional support helps make the economic environment more conducive
to the business or enterprise.
INSTITUTIONS TO ASSIST SSI ARE TWO TYPES:

1. STATE LEVEL INSTITUTIONS:


 State Directorate of Industries
 State Small Scale Industries Development Corporation(SSIDC)
 District Industries Centres(DICs)
 State Finance Corporations(SFCs)
 Technical Consultancy Organization(TCOs)
 State Industrial Area Development Board (SIADB) etc.

2. CENTRAL GOVERONMENT INSTITUTIONS:


 Department of Small Scale Industries(DSSI)
 Small Scale Industries Board(SSIB)
 Small Industries Development Organization(SIDO)
 National Small Industries Corporation(NSIC)
 Industrial Credit and Investment Corporation of India(ICICI)
 Industrial Finance Corporation of India (ICFI) etc.
NATIONAL SMALL INDUSTRIES CORPORATION (NSIC):

INTRODUCTION:
 The National Small Industries Corporation Ltd., (NSIC), is an ISO 9001
certified company.
 It is established by Government of India in 1955.
 It falls under Ministry of Micro, Small & Medium Enterprises of India.
 NSIC is the nodal office for several schemes of Ministry of MSME such as
Performance & Credit Rating, Single Point Registration, MSME Databank,
National SC ST Hub, etc.
 It was founded as a Government of India agency later made into a fully owned
government corporation.
NSIC (National Small Industries Corporation) is an ISO certified Indian
Government Enterprise under Micro, Small and Medium Enterprises. National
Small Industries Corporation is working to aid, foster and promote the growth of
MSMEs (micro, small and medium enterprises) all across the country.
NSIC operates all across the nation through a network of Technical Centres and
offices. To manage its functions and operations in African countries, National Small
Industries Corporation operates performs its administration from Johannesburg,
South Africa. Apart from this, National Small Industries Corporation has set up
Training cum Incubation Centres managed by highly trained professional
manpower.

Mission and Vision of NSIC


Vision: To become a leading organization fostering the growth of MSMEs Sector in
India.
Mission: To support and promote MSMEs Sector by providing combined support
services encircling Finance, Marketing, Technology and other Allied Services.
Schemes of NSIC
National Small Industries Corporation facilitates MSMEs with specially tailored
scheme to build and improve their competitiveness. National Small Industries
Corporation provides complete integrated services under Finance, Marketing,
Technology and another allied Support service.

Marketing Support
Marketing support has been considered as one of the most important tools for the
development of any business. It is crucial for the survival and growth of Micro,
Small and Medium Enterprises in today’s intensely competitive market. National
Small Industries Corporation devised numerous of schemes to support enterprises
(both domestic and foreign markets) in their marketing efforts. These schemes are
briefly described as under:

1. Consortia and Tender Marketing


Micro and Small Enterprises in their individual capacity encounter several issues in
order to procure & deliver large orders, which negate them a level playing field vis-
a’-vis large enterprises. National Small Industries Corporation forms consortia of
MSEs Manufacturing the same or similar product or products, thereby combining in
their capacity.
National Small Industries Corporation applies the tenders on behalf of single Micro
and Small Enterprise/Consortia of Micro and Small Enterprise for securing orders
for them. Finally, these orders are dispersed amongst Micro and Small Enterprises
in tune with their capacity of production.

2. Marketing Intelligence
Disseminate and collect both international as well as domestic marketing
intelligence for the benefit of Micro and Small Enterprises. This Marketing
Intelligence cell, apart from to spreading awareness about several schemes for
MSMEs, will maintain a database in detail and distribute information.
3. Exhibitions and Technology Fairs
To showcase the core competencies of Micro and Small Enterprises in India and to
capitalize market opportunities, National Small Industries Corporation participates
in National and International Trade Fairs and Exhibitions every year. National Small
Industries Corporation facilitates the participation of the MSEs by offering
concessions in rental etc. Participation in these national and international events
exposes Micro and Small Enterprises units to international practices and improves
their business competencies and prowess.

Credit Support
National Small Industries Corporation enables credit requirements of MSEs in the
following areas:

1. Financing for Raw Material Procurement


The scheme framed by National Small Industries Corporation for the assistance of
Raw Material helps MSEs by way of financing the procurement of Raw Material
(both indigenous & imported). The salient features are as follows:

1. Bulk purchase of basic raw materials at competitive rates.


2. Financial Assistance for Raw Materials procurement up to 90 days.
3. National Small Industries Corporation facilitates import of scares raw
materials.
4. National Small Industries Corporation takes overall care of all the
documentation, procedures and issuance of a letter of credit in case of imports.

2. Financing for Marketing Activities


National Small Industries Corporation provides assistance in the financing of
marketing actives such as Exports, Internal Marketing and Bill Discounting.

3. Finance through Syndication with Banks


To make the sure smooth flow of credit to MSEs, National Small Industries
Corporation enters into strategic alliances with several commercial banks to
facilitate working capital/ long-term financing of the MSEs across the country. The
engagement foresees forwarding of loan applications of the interested MSEs by
National Small Industries Corporation to the banks and sharing the processing fee.
4. Credit Rating Scheme and Performance for Small Industries
The need of Credit Rating Mechanism and Performance appraisal for MSMEs was
highlighted in Union Budget’04-05. A scheme for MSMEs has been drafted in
consultation with Rating Agencies and IBA (Indian Banks’ Association). National
Small Industries Corporation has been appointed the nodal agency for
implementation of this scheme through impaneled agencies.

5. Benefits of Performance and Credit Rating

1. Availability of credit at attractive interest rates


2. A trusted, independent third party opinion on credit-worthiness and
capabilities of Micro and Small Enterprises
3. Prompt sanctions of Credit from Banks and Financial Institutions
4. Recognition in global trade
5. Facilitate buyers/vendors in capacity and capability assessment of MSMEs
6. Subsidized rating fee structure for Micro and Small Enterprises
7. Enable MSMEs to ascertain the strengths and weaknesses of their existing
operations and take corrective measures.

Technology Support
NSIC offers small enterprises the following support services through its Technical
Services Centres.

1. Material testing facilities through accredited laboratories


2. Advise on application of new techniques
3. Common facility support in machining, EDM, CNC, etc.
4. Product design including CAD
5. Energy and environment services at selected centers
6. Classroom and practical training for skill upgrading
OPERATIONS:
 NSIC operates through countrywide network of offices and Technical Centres
in the Country.
 To manage operations in African countries, NSIC operates from its office
in Johannesburg, South Africa.
 However, From January 2018, Johannesburg office is now closed and is now
closely looking after domestic MSME Units.
 In addition, NSIC has set up Training cum Incubation Centre & with a large
professional manpower, NSIC provides a package of services as per the needs
of MSME sector.
 NSIC has recently partnered with Rubique.com, to facilitate lending for
MSME segment.
 Rubique and NSIC will work together to create an interface which will ease
credit facilitation for MSMEs by allowing quicker decision making and
evaluation and to widen the product offerings will bring their respective
bank/FI tie-ups under one umbrella for MSME.

FUNCTIONS OF NSIC:
 The important functions of NSIC are as follows:
 Financial assistance by way of hire purchase scheme for purchase of local and
imported machinery.
 Provision of various equipments on lease basis.
 Assistance for marketing the products in the country and also to help in
exporting the products of SSI units.
 Enlisting quality conscious good SSI units for sending enquiries of
Government stores and purchase departments.
 Training of workers in various trades required for SSI units.
 Assistance in upgradation of technology, processes and modernization of
plant and machinery.
 To make bulk purchases of important raw materials and distribute to SSI units
at reasonable rates. This avoids speculation and exploitation by the traders.
 To develop industrial estates and testing facilities in the industrial areas.
LATEST NEWS ABOUT NSIC:
• NSIC inks pact with Malaysia's SME Corporation: 25th Jan, 2018

National Small Industries Corporation (NSIC) on Thursday signed a MoU with


SME Corporation Malaysia for exchange of information and cooperation in areas
like policies to aid development of small and medium businesses (SMBs) in the two
countries.

Besides, three other agreements were also signed between Indian and Malaysian
entities to strengthen cooperation among smaller businesses in these countries.

• Bank guarantees case: NSIC accuses UBI of giving 'factually incorrect'


information to stock exchanges : 25th Mar, 2018

The letter said that bank guarantees amounting to Rs 173.50 crore "were
subsequently invoked by NSIC and the invocation proceeds of these bank guarantees
are yet to be released by the UBI to NSIC.

 NSCI have its facility in Bhubaneswar: 30th Aug, 2018

 The National Small Industries Corporation Ltd. (NSIC) has built an office in
Bhubaneswar with an investment Rs 550 million. It has built its largest office
building in eastern India with a build-up area of 1, 10,000 sq. ft. at
Bhubaneswar.
 The building will also have offices of various agencies like National Skill
Development Corporation, National Skill Training Institute (NSTI) and other
agencies will provide to give their support to various MSMEs including
SC/ST community.
 The inauguration of the new office is going to take place on the 30th of August,
2018

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