The National Small Industries Corporation Ltd (NSIC) was set up in 1955 as a central government undertaking, the main aim of which is to fulfill the requirement of machinery and equipment for the development of the small entrepreneurs. It is observed that the main constraint faced by the entrepreneurs is the dearth of investible funds to purchase machinery and equipment. Non-availability of finance deprives many new entrepreneurs from availing entrepreneurial opportunities.
NSIC is established to cater to this need of the entrepreneur. NSIC provides plant, machinery and equipment on a hire-purchase basis. Under its special scheme, entrepreneurs can procure indigenous as well as imported machinery. But the scheme does not include second hand machinery and machinery costing less than Rs. 1000. NSIC also assists the entrepreneurs in procuring government orders for various items of stores. Depending upon the cost of the machinery, an entrepreneur has to pay an application fee of Rs. 50 to Rs. 1000.
The processing fee is 2% to 5% of the cost of the machinery. Services fee depends upon the location of the unit. Discrimination is made between the units located in industrially developed regions and the units of scheduled castes, scheduled tribes, persons with disabilities, ex- servicemen and women. The cost of the machinery is to be repaid in 13 equal installments. New entrepreneurs are given special incentives. They can pay the first installment after 18 months from the date of contract with NSIC. For imported machinery, an entrepreneur has to abide by the provisions of the import policy of the government. Entrepreneurs have to secure a license for such imports. In special cases entrepreneurs have to prepare prototypes of the machines.
Functions of National Small Industries Corporation Ltd. (NSIC)
The Head office of NSIC is situated at New Delhi with four regional offices at New Delhi, Mumbai, Kolkata and Chennai and eleven branch offices at important cities spread over the entire country.
They provide a wide range of services mostly promotional in character to small scale industries. The important functions NSIC performs are grouped as under:
1. Provides financial assistance by way of hire-purchase scheme for purchase of machinery and equipment, required for the setting up industries.
2. Provides various equipments on lease basis.
3. Assists in marketing of the products of SSIs.
4. Helps in exporting the product of SSIs.
5. Provides training to workers of SSIs in various trades.
6. Helps in the development and upgradation of technology and modernisation of the industries.
7. Undertakes construction of industrial estates.
8. Purchases huge quantity of important raw materials and distribute the same to SSIs at reasonable rates.
9. Develops prototype machines and equipments to pass on to SSIs for commercial production.
10. Sets up small scale industries in other developing countries on turn-key basis.
So in the above way NSIC plays a prominent role for the development of entrepreneurship as well as industrialisation, in the country.