What is NSIC Registration?
NSIC is a Mini Ratna PSU set up by the Government of India in the year 1955. NSIC connects with different MSMEs operating in India. NSIC promotes and provides aids for the growth of MSMEs across the country. The corporation gives setup training and incubation, which is managed by experts and professionals. NSIC offers an integrated support service regarding various fields which include technology, finance and marketing. NSIC also registers Micro & Small Enterprises (MSEs) under Single Point Registration Scheme (SPRS) for involvement in Government purchases.
NSIC registration – Eligibility Criteria
The business enterprises fulfill the following conditions to become eligible for NSIC registration:
- All those Micro Enterprises who invest in plant & machinery up to Rs. 25 lakhs and invest up to Rs. 10 Lakhs in the service sector
- All those Small Enterprises who invest in plant & machinery up to Rs. 5 Crore and invest up to Rs. 2 crores in the service sector
- Those enterprises which hold the MSME Certificate
- The enterprises which have completed one year of business commencement
Benefits for NSIC registration
The benefits for the NSIC registration are as follows:
- Free Allotment of tenders – NSIC registration enables the allotment of tenders totally free of cost to eligible MSMEs
- No EMD deposit – MSMEs having NSIC registration need not pay Earnest Money Deposit (EMD).
- Development of SSIs – NSIC has reserved around 358 items for purchase, particularly only from (Small Scale Industries) SSIs for the upliftment of this sector.
- Assistance in Government tenders – All MSMEs bidding for government tenders within the price cap are allowed to supply up to 20% of the demand on the reduced price.
- Reserved Quota – From the total annual requirement of 20% supplies from MSMEs, 4% is reserved for the units owned by SC/STs category.
- Progress of MSMEs – NSIC executes various interconnected aid services concerning marketing, technology, finance and other such support to MSMEs.
- Increased Sale – PSUs, departments and central ministries assure a minimum of 25% of the total annual purchases of products and services produced by MSEs.
- Provides consultancy services – NSIC in India encourage entrepreneurship development, capacity building, policy and institutional framework and business development services to MSEs.
Various Schemes for MSMEs having NSIC registration
There are various schemes for MSMEs, from which some are discussed in detail:
- Single Point Registration Scheme- The Government is the largest buyer for the variety of goods. Due to the increase in share of purchases from a small scale sector, the Government Stores Purchase Programme was launched in the year 1955-56. NSIC registers MSEs or Micro & Small Enterprises under Single Point Registration scheme (SPRS) for participation in Government Purchases.
- Performance and Credit Rating Scheme – This scheme seeks to the establishment of independent and trusted third party opinions on capabilities and credit-worthiness of MSEs. This makes availability of credit at attractive interest rates and also ensures to better productivity. Under this scheme, a percentage of Rating Agency charges are reimbursed by Ministry of SSI as per MSEs Turnover.
- Bill Discounting Scheme – This Scheme will cover discounting of bills arising out of genuine trade transactions i.e. supplies made by MSMEs or Micro, Small and Medium Enterprises to reputed Public Limited Companies/State and Central Govt. Departments/ Undertakings/Private Limited Companies (not traders), engaged in manufacturing/ service activities.
- Bank Credit Facilitation- To meet the credit requirements of MSME units, NSIC has entered into a Memorandum of Understanding with various Nationalized and Private Sector Banks. Through these banks, NSIC facilitates MSME in accessing credit support (fund based or non-fund based limits) from the banks. NSIC also assists MSMEs in completion of the documentation for submitting the proposals to the banks. This type of support is provided by NSIC without any cost to the MSMEs.
- Raw Material Assistance Scheme- Raw Material Assistance Scheme aims to support MSMEs by way of financing the purchase of Raw Material both indigenous & imported products. This provides an opportunity to MSMEs to focus better on manufacturing quality products.
- Procurement and Marketing Assistance Scheme- Marketing is necessary for the development of business and is essential for the growth and survival of micro, small & medium enterprises as well. Large scale enterprises have enough resources to hire manpower and to take care of marketing of their products and services. MSME sector does not have these resources and hence requires institutional support for providing these inputs in the area of marketing. Ministry of Micro, Small & Medium Enterprises along with NSIC, has been providing marketing support to Micro & Small Enterprises (MSEs) under Marketing Assistance Scheme.