A Nodal Agency for Transfer of
Technology
AN OVERVIEW
The National Small Industries Corporation
Limited, was established in the year 1955 by the Government of India with
a view to promote, aid and foster the growth of Small Industries in the
country. NSIC continues to remain at the forefront of Industrial development
throughout the country with its various programmes and projects to assist
the small scale sector in the country.Recent transitions of industrial
climate and liberalisation of the total economic environment within the
country and international area has witnessed tremendous changes in the
domestic as well as international markets. These sudden changes have thrown
up as many opportunities as challenges to the small scale enterprises in
the country. Over a period of four decades of transition, growth and development
of small scale sector, it has proved its strength within the country and
abroad dynamically showing its progressive attitude towards modernisation,
upgradation of technology, quality consciousness, strengthening linkages
with large and medium scale enterprises and boosting exports of products
from Small Enterprises. The small scale sector continues to remain an important
instrument for enterprise building, dispersal of industries for even regional
economic development and employment generation.NSIC has been successfully
able to play its assigned role in this endeavour. Due to changed industrial
scenario and gradual globalisation of the economy, small scale sector has
to face stiff competition as the insulated and protected market conditions
are no more going to be available to it. To enable the small scale sector
to meet this challenge, NSIC is reorienting its programmes. The NSIC is
committed so that SSI units play a dominating role in the economy even
in the post GATT era.
A SPECTRUM OF ACTIVITIES
The National Small Industries Corporation
provides diversified support to reach multi-product, multi-client and multi
locational markets and has adopted multi-pronged approach to effectively
serve the marketing needs of the small scale sector. A unique approach,
through mobile van for marketing the products was adopted. The Corporation
also provides certain scarce indigenous as well as imported raw material
for production of high quality products and provides assistance to sell
the products through market development centres. Assistance by the NSIC
to the small scale units to sell their goods and services to the Government
Departments and agencies through single point registration scheme provides
vast marketing opportunities.
But that is not all. There is a
lot more to NSIC. The organisation is involved in Hire Purchase and Leasing
schemes and offers assistance to interested parties. These schemes benefited
first generation entrepreneurs to set up enterprises with minimum investment.
NSIC assists small enterprises to improve the quality of the end products
through creation of testing facilities to update the technology. NSIC is
well equipped for the future with futuristic and advanced systems. A fully
equipped computer network with an operational DTP represents the mode in
face of NSIC, and also the launching of software parks.
MACHINERY AND EQUIPMENT
Hire Purchase Scheme
Hire purchase scheme was started
in 1956 with a view to promote small and ancillary industries and to modernise
the existing ones by supplying both indigenous and imported machines on
easy hire purchase terms. NSIC was the first institution to introduce this
scheme especially to cater the needs of the first generation entrepreneurs.
The scheme has been very popular and also an instrument for the growth
and development of the small scale industries. In addition to this, it
has also created a sound and formidable entrepreneurship base among the
first generation entrepreneurs and a broad spectrum of manufacturing capacities,
plant and machinery and wide range of products for meeting the domestic
needs of the industries and the consumer.
Equipment Leasing and Modernisation
In the changing economic and business
environment, NSIC has brought about changes in the above scheme. Besides
stepping up assistance under the above scheme, the scheme is being designed
to enable the small units to diversify and upgrade their technology and
production process so that they successfully compete with the multinational
corporations. The scheme has manifold advantages for the small scale units.
The scheme provides for 100%
finance, single window service for indigenous as well as imported machinery
and tax rebate on full year rental. The assistance under this scheme has
been increasing year to year and during 1994-95, Corporation provides assistance
to the tune of Rs.1,896/- millions as against Rs. 1,596.76 millions in
the proceeding year.
This shows a growth of 30%. It is
anticipated that this scheme, beside providing much needed financial support
to the sector, would become a source of technology upgradation, diversification
and quality improvement in the small scale sector. A study has revealed
that the modernisation aspect leads to much faster growth in employment
and also increases productivity with a minimum cost. Hence the corporation
intends to increase the level of assistance under this scheme so that it
can ensure increased productivity; generate employment opportunities and
technology upgradation with a minimum cost and shorter gestation period.NSIC's
assistance in this area shall spread to more sophisticated fields such
as Software Technology Park, sectors pertaining to space and others.
RAW MATERIAL ASSISTANCE
The availability of raw materials
at the right time is a pre-requisite for the success of Small Scale Units
and Corporation has been supplementing the availability of raw materials
to a large number of units of "off the shelf basis. The Corporation also
assists in import of raw materials. Import is against specific indent received
from small scale units.
The Corporation made a major breakthrough
in its efforts to supply raw material to small scale units. It has already
signed a MOU with NALCO and has opened raw material depots in New Delhi
and Pondicherry.
TECHNOLOGY UPGRADATION
Modernisation of the small scale
sector in the present context has assumed considerable significance,5 NSIC-TSCs
and 7 Sub-Centres have provided excellent technical support to the small
scale sector by ensuring supply of technically trend manpower, development
of commercially viable prototypes, common facilities, testing facilities,
improved tools, development of appropriate technology and creation of technical
infrastructure in rural and backward areas.
Keeping in view of the changes brought
out in the new industrial policy wherein simplifications have been done
a liberalised procedure for foreign direct investment has been approved,
more industries are being opened upto private enterprises. Further relaxation
made in respect of restrictions of import of capital goods is going to
result into substantial technological advancement of market improvement
in quality products and procedure.
As suppliers of parts, special assemblies
and components to large undertakings, small scale units can meaning to
participate in the process by adopting update technologies and attaining
high quality standard. Keeping this in view, the Corporation has not only
increased its training capabilities but also entered in hi-tech areas such
as Computer Applications, electric and electronic services etc.
Over the years, these Centres have
trained more than 37129 persons. NSIC-TSCs have also started some country
under minority welfare programme. NSIC-TSC Okhla, Chennai, Rajkot and Howrah
have been accorded recognition by the Ministry of Science and Technology(Department
of Scientific and Industrial Research) for having In-house Development
and Research Centres. The recognition will enable the Centres to import
the requirement of capital goods so as to improve and update their technical
capabilities for enhancing the services particularly in relation to R&D.
NEW TECHNOLOGIES INTRODUCED
BY NSIC-TSCs
NSIC-TSC, Okhla has designed and
developed the prototype of 250 Ton Die Casting Machine. In additional to
this, they have, also developed 80 Ton Die Casting M/c. with intensifier
which has pressure multiplier device to make the machine more versatile
and efficient.
Raw Turmeric Processing Plant has
been developed for the rural and backward areas of Orissa under Appropriate
Technology Scheme of Government of India, Ministry of Industry.
NSIC-TSC, Chennai has developed
improved machines the area of leather working and footwear making. The
M/cs. are heavy skiving machine iron and embossing machine, clickers. The
machines developed by NSIC-TSC Chennai are import substitutes and help
in saving valuable foreign exchange. It has entered into technical collaboration
with Brugi of Itally.
TECHNOLOGY DISSEMINATION CENTRES
With a view to provide a proper
guidance to small scale units through access to latest information in connection
with the technology upgradation/dissemination amongst the other small and
large scale enterprises spread all over India and abroad, NSIC has set
up Technology Dissemination Centres to assist and provide latest information
through on-line connection Net-works of computers. Information regarding
Technology offers and request from the small scale units are provided to
the interested units.
SOFTWARE TECHNOLOGY PARK
Keeping in view the potential in
the area of software exports and to create facility for the promotion of
small scale unit and also, provide place to negotiate with the units from
abroad. NSIC have set up a NSIC-STP COMPLEX under Software Technology Parks,
of India (STP).
Software Technology Park will facilitate
small scale units to establish their units for the 100% exports of software
and also act as the nodal point to activate software exports directly through
NSIC.
NSIC-STP Complex at Okhla is one
such Parks set up by the National Small Industries Corporation under the
Software Technology Parks of India scheme to promote Small entrepreneurs
in software development. In this context VSNL Limited has provided an on-line
connection for proper communication with the other countries.
MARKETING SUPPORT PROGRAMME
In the changed economic scenario,
Marketing support Programme has become extremely essential for the growth
and development of small scale sector. Marketing is essentially an entrepreneurial
function and Corporation has been continuing its endeavour and motivating
small enterprises to enhance their effort and quality. The Corporation,
besides giving assistance under its various marketing support programmes,
has also re-oriented its schemes to suit the changed needs of the small
scale sector. The idea behind is to provide diversified marketing support
to this vibrant sector of the economy to reach the multi-dimension and
multi location markets. The maintain the entrepreneurial spirit alive in
the marketing efforts, NSIC has been continuing its emphasis on motivating
the small enterprises by providing them organisational support. In this
context NSIC participated in the equity of Small Industries Production
Promotion Organisation (SIPPO) established for marketing the products of
small industries in collaboration with Tamil Nadu Small Industries
Limited In addition to participation in equity, Corporation is providing
support to SIPPO at Board level. The Corporation has also provided equity
and promotional support to Small Industries Products Marketing Organisation
(SIPMO), a Company promoted for providing marketing support to small
scale units. The equity support and Board level assistance provided by
the NSIC has resulted in substantial business to SIPPO. Its
sales turnover
increased from Rs. 2.4 million to Rs. 22.9 million during 1993-94 with
a net profit of Rs. 6 million. Many more similar ventures are on the anvil.
INTEGRATED MARKETING SUPPORT
NSIC has recently started
a Integrated Marketing Support Programme in which bills pertaining to supplies
made by small scale units to eligible purchasers are discounted by NSIC
up to a certain specified limits. The scheme has been introduced with a
view to mitigate the problem of delayed payments by buyers against supplies
made by small scale units.
MARKETING DEVELOPMENT CENTRES
In order to assist the small scale
units in marketing their products to the consumers, NSIC has conceived
the idea of setting up of Market Development Centres. The centres provide
marketing outlets and serve as a common marketing facility for a number
of small scale units. Such facilities are normally cost prohibitive for
any single units. The scheme has become very popular among SSI units.
GOVERNMENT PURCHASE PROGRAMME
This programme was initiated in
1955-56 with a view to assist the small scale industries in obtaining a
fair share of the total purchases made by the government and its departments
including the public sector undertakings and state Governments. The main
aim of this programme is that SSI units will, in the process, be oriented
to produce goods in conformity with the standards laid down by the buying
agencies.
Out of the important elements of
the government Stores Purchase Programme is the registration of units by
NSIC as competent to execute Government orders. The scheme has been in
operation since 1956 which was later on modified in 1976 and came to be
known as the "Single Point Registration Scheme" with a view to do away
with the multiplicity of registration with individual purchase organisation.
The units registered with the Corporation for participation in government
purchase programme are considered at par with individual purchase organisations
and derive all the benefits like free supply of tender forms, exemption
from payment of earnest money, security deposits, etc.
EXPORTS
PRODUCT EXPORT
NSIC is a recognised Export House.
It is already exporting a number of items manufactured by SSI units.
Keeping in view of the changing
economic environment, NSIC is laying greater stress in promoting direct
and indirect exports. The small scale sector is already playing a significant
role in the export sector of the country with a wide variety of products
and services. NSIC is providing a complete package of export assistance,
testing facilities, pre-shipment credit facility, export incentives etc.
apart from exposure to the products of SSEs in trade fairs, buyer and seller
meets etc. In addition to this, NSIC also helps the units in procurement
of samples, development of counter samples and in negotiations for first
business deals with foreign buyers.
PROJECT EXPORT
Over the years, NSIC has made concerted
efforts in promoting the concept of small scale industries as exporters
in developing countries particularly in Africa. NSIC has been able to generate
considerable demand from developing countries. NSIC's services comprise
of preparation of industrial profiles, detailed project reports, selection
and supply of plant and machinery, experts and technicians for commissioning
of units and initial management. NSIC has set up a large number of turnkey
projects in various countries such as Kenya, Tanzania, Nigeria, Botswana,
Bangladesh, Srilanka, Ghana to name a few.
SPECIAL EXPORT PROGRAMME
The Corporation has been endeavouring
increase share of Indian industries in purchases by United nations Organisation
being the largest single buyer in the world. With this end in view, NSIC
has already prepared a roster of potential suppliers of goods and services
from India which enabled it to emerge on top as supplier among the developing
countries.
NEW INITIATIVES
Formation of Exporters
Club
With a view to encourage exports
from the small scale sector, Corporation intends to organise clubs which
will be formed of export oriented or export potential units at various
locations in the country with the following aims and objectives :
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To provide information to the members
on the various export opportunities.
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To facilitate the members to work closely
with the NSIC for export of products and projects.
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To supplement the role played by NSIC
in inducting the small scale enterprise into the export and work as well
knitted team to execute the export orders within the least possible time.
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To develop a direct link with the units
having export potential and thereby arranging a proper information with
such units who are capable to export.
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To carry out any other activities by
NSIC which will be beneficial to the members of the export club for encouraging
exports.
Organise Technology Clinics
one area of weakness of many small
scale industries is that they are not able to get consultancy services
in respect of technology being used for production and process of their
items. It is felt that institutional support may be provided to SSIs for
enabling the entrepreneurs to approach such agencies who can guide them
on the various problems related to manufacturing processes. The corporation
intends to organise a number of technology clinics where consultant will
be available to advise and solve the specific problems relating to manufacturing
process of a particular SSI unit.
Industrial Design Centres
The "Made-in-India" label is, generally
speaking not synonymous with the quality design and performance. It does
not inspire confidence in the buyer. The products of Indian manufacturing
industry suffer in comparison to developed countries. Improvement of an
consistency in the quality of products exported from India is, therefore,
a matter of serious concern if Indian products are to compete successfully
in international markets. Lack of application of industrial design principles
among dominant percentage of the small industrial sector seems to be a
major contributing factor for the state of affairs. To redress the problems
of SSI units one Industrial Design Centre has already been planned . This
Centre will provide consultancy and common facilities support to industry
by providing infrastructure for extensive design work which individual
industries may not find at all feasible to set up by themselves. The Centre
will also offer training programmes to impart education in design principles
to industrial personnel. The centre will look at the possibility of improving
design values of products while keeping production costs as low as possible.
Financial Service Scheme
The recent liberalised policies
and opening up of the Indian economy with the aim to integrate into worlds
economy; requires that small scale units evolved a self sustenance approach
through financial and technical operations. The major problem of the small
scale sector is the lack of adequate financial resources. With a view to
provide faster assistance to the small enterprises across the table as
per their specific needs and requirements, NSIC has opened specialised
centres names as "Financial Service Centres" at New Delhi,
Mumbai, Ahmedabad, Bangalore and Goa.
The Corporation will gradually expand
these services all over the country in phased manner. At the Financial
Service Centres, the SSI units will be able to avail various facilities
such as Leasing, Marketing, Bill- discounting, Raw material, Export assistance
etc. across the table. Working capital finance would also be extended on
selective basis to the viable and well managed small enterprises. The objective
of launching of these scheme is to help the small enterprises which are
financially sound and can provide adequate security. The scheme drastically
reduces the procedural delay and time lag involved in processing of the
assistance applications.
RECOGNITION
The services of the Corporation
have markedly contributed in the process of industrialisation and growth
and the gains are linked with social and economic aims of the state policy
coupled with opportunities, for overall economic growth.
There is an over increasing demand
for the services of the corporation which are being highly appreciated
and have also received due recognition from various quarters.
During the last six/seven years
it has bagged more than twelve awards from various authorities like CII
First prize for Energy conservation, WASME awards for excellent services
to the small industry sector, several awards from ITPO and CII for participation
in Exhibitions and Trade Fairs etc.
The Corporation also received during
the year, the export promotion award from the EEPC and Energy conservation
award at Energy India.
The Corporation has played a significant
role in the development of Appropriate technologies, Modernisation and
upgradation of production processes and creation of Entrepreneurial base
amongst the first generation entrepreneurs. |