Industries not availing schemes run by NSIC

Source: The Hitavada      Date: 04 Jan 2017 10:57:53


By Piyush Shrivastava,

Lack of proper communication and awareness amongst industrialists about privileges in the schemes is the reason behind the poor response to NSIC schemes

Exemption of security deposit provision in scheme of National Small Industries Corporation (NSIC) for the industry supplying material in Government tenders demising interest of entrepreneurs to get registered. Rather lack of proper communication and awareness amongst industrialists about privileges in the schemes hampered the work.


Following this lacking, the industry could not avail the support being extended by the NSIC to industries and new entrants for business expansion, skill development. In previous year, a delegation of industrialists supplying material to defence establishments in Jabalpur have raised the issue before the Union Defence Minister, Manohar Parrikar and demanded to restore the provision of Security Deposit privileges. Yet, the demand is in consideration.


Yet countable number of suppliers, industries from Jabalpur are enrolled in different schemes run by NSIC. However, since the provision of security deposit, support is exempted from the NSIC schemes for supplier the interest of industries showing inclination towards registration with NSIC has decreased.


It may be mentioned that, in previous year, the NSIC had organised some exposure programmes for industrialists and traders. These events were organised for city industrialists to inform them about numerous benefits being extended by the NSIC making them competent to contest in open market trends.
The NSIC in its various activities the NSIC ensures supply of availability of raw material at lowest cost, while also supplies raw material in bulk.


“The functioning of NSIC is based on generation of demand. From Jabalpur, the demand is limited due to less number of industries qualifying for the bulk supply. Most industries are acting as sub-contract vendors. In different programmes organised in previous year, various reasons surfaced for low participation of industrialists in NSIC. The reasons identified are nature of industrial production in Jabalpur is related to Centre-run industrial units. The orders are now based on open tenders. Secondly, majority of units lack technical specifications as per demand,” said Naseer Ahmed, Branch Manager NSIC at Bhopal.


Mahakoshal Laghu Udyog Sangh, President, Narendra Sommiya opined that the NSIC has various support for industries development. In Jabalpur, its major support lies in privileges that it provides through Earnest Money Deposit, Tender Documentation and other facilities but the most important part is percentage fixed for security deposit in new procurement policy of the Government-run industries. The exemption of security deposit, which is around 10 per cent, only stops profitability of supplier industry for three years. We have demanded to the Union Defence Minister and Union Industry Minister to restore the exemption. The demand is under consideration.