Team Business Mantra comprising Chief Consulting Editor CA Sanjay Kumar & Executive Editor Mr. Lalit Virmani visited the office of NSIC in Faridabad and interviewed Mr. D.K.Bhatia, DGM/SBM, who was very pleased to share information with regard to NSIC and its schemes, helpful Mantras to foster the growth of MSME’s.
Detailed Interview is as follows:
Question by CA Sanjay Kumar: Please tell us about NSIC and its working
Reply by Mr. D.K.Bhatia: National Small Industries Corporation Ltd., (NSIC) an ISO 9001 certified company, has been working to promote, aid and foster the growth of micro and small enterprises, since its establishment in 1955. With enactment of Micro, Small and Medium Enterprises Development (MSMED) Act 2006, ‘medium enterprises’ also come into its ambit.
NSIC operates through its countrywide network of offices and Technical Centres in the country. In addition, NSIC has set up Training-cum-incubation Centres in different parts of the country. To manage operations in African countries; NSIC operates from its office in Johannesburg, South Africa.
CA S.K. : What Services do NSIC provide to MSMEs ? Please share some more details.
Mr. D.K.B: NSIC facilitates micro, small and medium enterprises with a set of specially tailored schemes to enhance their competitiveness. NSIC provides integrated support services under Marketing, Technology, Finance and other Support services through its following schemes:-
- Raw Material Distribution arrangements for MSEs from reputed bulk suppliers.
- Raw Material Assistance against the security of Bank Guarantee.
- Bank Credit Facilitation Scheme.
- Single Point Registration Scheme/ Government Purchase scheme.
- Consortia & Tender Marketing.
- B2B E-Market Place.
- Performance & Credit Rating Scheme.
CA S.K.: How does NSIC help in Raw Material Distribution/Procurement?
Mr. D.K.B: NSIC has signed agreements / MOUs with the major bulk producers (Aluminium, Iron Steel, Paraffin Wax, Coal and Polymer products etc.) These arrangements facilitate MSMEs in getting material at the manufacturer’s price, leading to reduction in the cost of raw materials and making the end products of MSMEs competitive. These efforts of NSIC supplement the programmes of the Government aimed in making Indian MSMEs globally competitive.
CA S.K.: Please let us know about Raw Material Assistance, against Bank Guarantee.
Mr. D.K.B: NSIC facilitates MSMEs in their raw material requirement by making arrangements with bulk manufacturers for procuring the materials and supplying the same. In case MSMEs need any credit support for raw material procurement, NSIC facilitates it by arranging the raw material on making payment to suppliers. NSIC also facilitates financing of marketing activities of MSMEs such as internal Marketing, Exports etc.
CA S.K.: How Banks are helping MSMEs in financing through NSIC?
Mr. D.K.B: NSIC has entered into tie up arrangements with public sector and private sector banks for MSMEs in accessing term and working capital loans. NSIC operates as a ‘one stop shop’, aggregating financing options from various banks under this unique tie up arrangements.
CA S.K.: What is Single Point Registration Scheme and how it is helpful to MSMEs?
Mr. D.K.B.: NSIC operates a Single Point Registration Scheme under the Government Purchase Programme, wherein the MSEs are enlisted after third party Technical Inspection of Certification of their competency/ qualitative and quantitative capacity. The small enterprises registered under this scheme get the following facilities:-
- Issue of Tenders free of cost.
- Exemption from payment of earnest money deposit.
- In tender participation, MSEs quoting price within price band of L1+15% allowed to supply a portion up to 20% of requirement by bringing down their price to L1 price, where L1 is non MSEs.
CA S.K.: Please tell us about Consortia & Tender Marketing.
Mr. D.K.B.: Micro & Small Enterprises (MSEs) in their individual capacity face problems to procure and execute large orders, which deny them a level – playing field vis-a-vis large enterprises. NSIC, forms consortia of micro & small units manufacturing the same product, thereby pooling in their capacity.
NSIC applies in Tenders on behalf of single MSE/consortia of MSEs for securing orders for them. These orders are then distributed amongst MSEs, in tune with their production capacity.
CA S.K.: What is this business through B2B E-Market Place?
Mr. D.K.B.: The Internet is driving a swift change in the way of doing business. Today more and more B2B (Business to Business) Companies are searching the internet for direct deal, instant searching of buyers/supplier, better pricing, increased services and location-specific partners.
With its endeavor to facilitate E-Marketing Service effectively to MSMEs globally, NSIC is assisting MSMEs through MSME Global Mart Web (www.msmemart.com). The portal provides an online platform to B2B marketing activities. The portal hosts vast database of registered members who are looking for business opportunities, in terms of sustainable partnership, subcontracting and participation in Public Procurements.
CA S.K.: Can MSMEs be benefitted by Performance & Credit Rating Scheme?
Mr. D.K.B.: On behalf of the Ministry of Micro, Small & Medium Enterprises, NSIC is implementing “Performance & Credit Rating Scheme” for micro and small enterprises (MSEs). The rating serves as a trusted third party opinion on the unit’s capabilities and credit worthiness. A good rating enhances the acceptability of the rated unit in the market and also makes it access to quicker and cheaper credit and thus helps in economizing the cost of credit. The scheme is being operated through accredited rating agencies i.e. CARE, CRISIL, India Ratings, ICRA, ONICRA, SMERA and Brickwork Rating India Pvt. Ltd. Etc. The fee to be paid by the MSEs for the rating, is subsidized by the Government to the extent of 75% of the rating fee upto a maximum of Rs.40,000/-.
CA S.K.: It is very good that NSIC has its own Marketing Intelligence Cell. How it works to support MSMEs?
Mr. D.K.B.: NSIC has its own Intelligence Cell which gathers information and analyzes existing and potential customers for their need based preferences, market behavior, attitude and assessment. NSIC also helps in joint ventures, business collaborations, exporters and importers, technology up-gradation etc.
To sum up, MSME units especially in Faridabad can well avail the above mentioned facilities being provided by NSIC through Faridabad Branch for the growth of their business. All the information shared above is also available on the website of NSIC www.nsic.co.in
Team Business Mantra thanked Mr. Bhatia for his informative deliberation.
NSIC can be reached through Business Mantra News via e-mail: email@example.com
Branch Address: 107, Nissan Hut, NH-5, Railway Road, Faridabad-121001. Phones: 9891901557, 0129-4311249/52/92; e-mail: firstname.lastname@example.org