National Small Industries Corporation

In India, small industries play a critical role in developing the country. Small businesses contribute almost 95% of the industrial units in India. Along with these, small businesses are among the country’s largest employers of human resources. These small industries cover the production of almost all everyday consumption goods.

However, many small businesses fail in making growth and development due to the lack of finance, raw materials, labour, managerial skills, capacity utilisation, technology, and marketing. Hence, the Government has formed a corporation to develop such small businesses, known as the National Small Industries Corporation Limited (NSIC).

What is the National small industries corporation (NSIC)?

In 1995, the Ministry of Micro, Small, Medium Enterprises (MSME) and the Government of India formed the National Small Industries Corporation Ltd. (NSIC). The NSIC was formed to develop and promote small-scale industries in the country. It is an enterprise owned by the Government of India, which was, later on, made a wholly-owned government corporation certified as an ISO 9001 – 2015. Different National Small Industries Corporation, technical services centres, are spread all over the country to get actively involved in the development process.

Objectives

The objectives of the National Small Industries Corporation Ltd. include the promotion and development of micro and small-scale industries in India. Here are some of the main goals of NSIC:

• To build and support the reach of NSIC itself at all the places of India in all aspects.
• To upgrade the skills and technology in small industries.
• To enhance the workforce in small enterprises.
• To promote hygiene in workplaces.
• To create self-employment by training the people as per the requirement and work nature.
• To make the small businesses profitable, efficient, and more productive.
• To provide necessary facilities such as raw materials, machinery, and equipment to the small-scale industries at reasonable prices.
• To participate in bulk purchasing programs of the Government.
• To promote exports.

Schemes

The National Small Industries Corporation ltd. has set up different schemes to promote the development of MSMEs. The following are some famous schemes set up by NSIC:

• The Single Point Registration Scheme
  In this scheme, the NSIC registered small-scale industries get the purchase preference in the Government purchasing programs. Such MSMEs get the waiver of Earnest Money Deposit (EMD) in the Government Purchase Programme.

• Performances and Credit Rating Scheme
  This scheme helps the small-scale industries to recognise their strengths and weaknesses for the ongoing projects. It focuses on enhancing the organisational strength and making the appropriate decision. It also provides credit to the MSMEs with low-interest rates.

• The Raw Material Assistance Scheme
  The raw material assistance scheme is set up to enhance the manufacturing and production quality of the goods. This scheme finances the purchase of imported and indigenous raw materials.

• Bill Discounting Scheme
  Bill discounting scheme provides the small scale industries or MSMEs purchase or discounting of bills for the trade transactions undertaken with the reputed public limited companies or any government bodies.

• MSME Global Mart
  MSME Global Mart can be called a B2B portal that provides technology and financial assistance to the small industries or MSMEs in India at very reasonable prices.

• Consortia and Marketing Scheme
  This scheme is for those small-scale industries that face problems in executing large orders. In this scheme, the NSIC explores the markets for bulk orders and promotes the goods and services produced by small-scale industries.

• Skill and Development Scheme
  All the enterprises registered under the Ministry of MSMEs can enjoy the benefits of this scheme. The main objective of this scheme is to provide skill, development, and technical training to the MSMEs.

Documents needed for registration

To take advantage of all the benefits of NSIC schemes, the registration process is essential. The required documents for registering under the National Small Industries Corporation are given below:

• A well-Attested copy of PAN, BIS Licence, and ISO 9000.
• A copy of MSME registration acknowledgement.
• Detailed list and bill of available machinery, equipment, raw materials, and other resources.
• Certificate of Incorporation.
• Memorandum of Understanding.
• Ownership documents and permission deed.
• The original copy of the latest electricity bill.
• Registrar of Firms with the partner’s name with a document of declaration from partner, director, or proprietor (based on the type of business organisation).
• An appropriate list of all the raw materials and the total number of employees.
• Audited profit and loss statement (also includes for the preceding three years)

Registration Process

The detailed registration process for the National Small Industries Corporation is explained below:

• Eligibility
  All the enterprises or businesses registered under the Ministry of MSMEs or the Udyog Adhaar are eligible for the NSIC registration process.

• Online Registration
  For the online registration process, the following steps should be followed:

1. Login to the NSIC website
2. Click on the online registration
3. Fill up the registration form and attach all the required documents.
4. Pay the registration fees
5. Apply

• Offline Registration
  For registering offline, the following steps should be followed:

1. Go to the NSIC website and download the application form.
2. Fill out the application form and apply for any National Small Industries Corporation technical services centre in India.

Registration Fees

The registration fees depend on the business turnovers of the MSMEs. For the businesses that have a turnover of less than one cr, the registration fees are Rs. 3000.

Conclusion

The National Small Industries Corporation promotes the development and growth of the MSMEs and small-scale industries in India. It provides different facilities, schemes, and subsidies to all small-scale businesses. It focuses on providing cheap and best finance and facilities to all the small-scale industries in the country. The enterprises registered under the Ministry of MSMEs or Udyog Aadhaar are eligible for all the benefits and schemes of the National Small Industries Corporation. The registration process for availing of the benefits of NSIC is straightforward and easy, with a minimum registration fee of Rs. 3000 and Professional fee are set at Rs. 6000 for micro enterprises and Rs. 8000 for small enterprises.