Schemes Under NSIC

NSIC has launched several schemes to address the diverse needs of MSMEs, ranging from financial support to marketing assistance. Here is a breakdown of the major schemes:

1. Single Point Registration Scheme (SPRS)

Under SPRS, NSIC registers eligible MSMEs to facilitate their participation in government procurement. This scheme comes with several benefits:

• Tender Sets at No Cost: Registered MSMEs can obtain tender sets free of charge.
• EMD Exemption: Earnest Money Deposit (EMD) requirements are waived for registered units.
• Price Band Advantage: Micro and Small Enterprises quoting within 15% of the lowest (L1) bid price can supply up to 25% of the tendered quantity, provided they agree to match the L1 price.
• Consortia and Tender Marketing: NSIC helps MSMEs form consortia to collectively bid for large government orders, making it easier to secure contracts.

2. Marketing Support Scheme

Marketing is vital for the survival and growth of any business. NSIC offers various marketing support services to MSMEs to help them stay competitive:

• Domestic and Export Marketing: Facilitates MSMEs in reaching both domestic and global markets.
• Trade Fairs and Exhibitions: NSIC organizes and subsidizes MSME participation in national and international trade fairs, providing a platform to showcase their products and network with potential clients.

3. Marketing Intelligence

NSIC collects and distributes crucial market intelligence to help MSMEs make informed decisions. The Marketing Intelligence Cell maintains an extensive database of market trends and opportunities and educates MSMEs on available schemes.

4. Consortia and Tender Marketing

Due to capacity constraints, individual MSMEs often struggle to fulfill large orders. NSIC forms groups of MSMEs manufacturing similar products, enabling them to compete for and fulfill big contracts. NSIC then distributes these orders among member units based on their production capacities.

5. Exhibitions and Technology Fairs

To promote MSME products and services, NSIC sponsors and organizes participation in trade fairs and exhibitions:

• Subsidized Booth Rentals: NSIC provides concessions on booth rentals to encourage MSME participation.
• Exposure to Best Practices: By engaging in these events, MSMEs gain exposure to international business practices and innovative technologies.

6. Credit Support

Financial support is a significant area where NSIC assists MSMEs. It offers credit for:

• Raw Material Procurement: NSIC finances the procurement of both indigenous and imported raw materials. Features include:
• Bulk Purchase Discounts: Facilitates bulk buying of essential raw materials at reduced rates.
• Credit for 90 Days: Provides up to 90 days of credit for raw material purchases.
• Letter of Credit for Imports: Manages the documentation and issuance of letters of credit for imported goods.
• Marketing Activities: Provides funding for marketing initiatives, including exports and bill discounting.
• Syndicated Loans with Banks: NSIC collaborates with banks to ensure a smooth flow of working capital and long-term financing for MSMEs. This arrangement simplifies the loan application process for businesses.

7. International Cooperation Scheme

NSIC fosters international business partnerships to boost exports and technology transfer. Services under this scheme include:

• Market Identification: Helps MSMEs identify and explore new international markets.
• Business Delegations: Organizes technology and business missions to facilitate knowledge exchange and collaboration with foreign enterprises.

Benefits of NSIC Registration

1. Support for MSMEs

NSIC conducts training programs and workshops on various topics, including marketing strategies and technology investments, to enhance the skills and performance of MSMEs.

2. Government Tender Assistance

Registered MSMEs receive preferential treatment in government tenders. Through the SPRS, MSMEs are notified of tender opportunities and can compete more effectively.

3. Transparency in Funding

NSIC aims to bring transparency to fund utilization by NGOs and trusts engaged in social causes, ensuring that government support reaches deserving MSMEs.

4. EMD Exemption

One of the most significant advantages of NSIC Registration is the exemption from the Earnest Money Deposit (EMD), which can be a substantial financial burden.

5. Boost for Small-Scale Industries

The government has reserved 358 items exclusively for procurement from small-scale industries, providing a ready market for NSIC-registered MSMEs.

6. Access to Credit and Raw Material Assistance

NSIC Registration makes businesses eligible for financial assistance, including credit for raw material purchases and loans for marketing activities.

Eligibility Criteria for NSIC Registration

To be eligible for NSIC Registration, a business must meet the following criteria:

1. MSME Registration: The enterprise must have an Udyog Aadhaar Memorandum (UAM) or Udyam Registration and own or lease its workshop.
2. Financial Standing: The business should have a minimum net worth of Rs. 25 lakhs and an annual turnover of less than Rs. 100 crores.
3. Commercial Activity: Only service providers or manufacturers with a valid GST Registration Number are eligible to apply. Traders are excluded from NSIC benefits.
4. Operational Status: Enterprises that have started commercial production but have not yet completed one year of operations can apply for provisional registration. This provisional certificate is valid for one year and comes with a financial limit of Rs. 5 lakhs.
5. Technical Competence: MSMEs should have adequate technical and commercial capabilities to supply goods or services to government departments like railways, defense, and other public sector units.

Documents Required for NSIC Registration

To apply for NSIC Registration, the following documents are necessary:

1. PAN Card of the Proprietor or Business.
2. Udyam Registration Certificate.
3. Details of Machinery and Plant installed.
4. Recent Electricity Bill of the business premises.
5. Financial Statements for the last three years, certified by a Chartered Accountant:
• Balance Sheet
• Profit and Loss Account
• Schedule of Fixed Assets
6. Statement of Operational Results for the last three years, signed by a CA.
7. Declaration Form: A signed declaration accepting the terms and conditions of registration.
8. Ownership Documents: Proof of ownership or lease agreement for the business premises.
9. Quality Control Records: A list of quality control and testing equipment available at the business location.

NSIC Registration Process

The process for obtaining NSIC Registration is smooth and completely online. Here’s how to go about it:

Step 1: Obtain Udyam Registration

Before applying for NSIC, businesses must register as an MSME and get their Udyam Registration Number.

Step 2: Register on MSME DataBank

Use your Udyam Registration Number and PAN to register on the MSME DataBank. This registration is mandatory for the Single Point Registration Scheme (SPRS).

Step 3: Submit Application

Applications for SPRS are submitted online through the NSIC portal. Upload all necessary documents, forms, and annexures. NSIC will forward the application to the nearest zonal or sub-branch office for technical inspection.

Step 4: Inspection

A third-party agency, selected based on your industry, will conduct an inspection of your unit. The inspection report will be forwarded to NSIC for final assessment.

Step 5: Approval and Issuance

Upon successful inspection and verification, NSIC will issue the Registration Certificate. The certificate will be available online, and a hard copy will be mailed to the applicant.

Note: The NSIC Registration Certificate is valid for two years and must be renewed every two years. The renewal process involves reassessment of the MSME’s technical and commercial competence.

NSIC Registration Fees

The fees for NSIC Registration vary based on the turnover of the enterprise:

Important Note: The above fees exclude inspection charges levied by the third-party inspection agency. GST is applicable on all fees, with a cap of Rs. 1 lakh for all categories.