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 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 endeavor. 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 these changes, 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 multiproduct, multi-client and multi location markets and has adopted a 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 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.

Composite Term Loan Scheme :-
The NSIC has recently introduced Composite Term Loan (CTL) Scheme. The CTL shall be granted for acquisition of Land and Building (10% to 40% of CTL), Machinery and Equipment (20% to 80% of CTL) and Working Capital (10% to 40% of CTL) to tiny units with total assistance upto Rs. 25.00 Lacs. The assistance under this scheme will be limited to new/existing small and tiny units including expansion/ technological upgradation provided the total investment in plant and machinery does not exceed Rs. 25.00 Lacs.

The loan in respect of Land, Building, Machinery and Equipment and Working Capital shall be repaid during a period of 5(five) years in quarterly equal instalments along with interest and service charges after the expiry of gestation period, which will be 12 months for tiny units including IT, units and 6 months for service industries.

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 customer.

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 thatthey successfully comtages 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 provided assistance to the tune of Rs. 1,896 millions as against Rs. 1,596.76 millions in the preceding year. This shows a growth of 30%. It is anticipated that this scheme, besides 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 on ‘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 trained 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 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 up to 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 under takings, small scale units can participate in the process by adopting updated 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 centres 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 Tonne Die Casting Machine. In additional to this, they have also developed 80 Tonne Die Casting Machine with intensifier which has pressure, multiplier device to make the machine more versame 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 in the area of leather working and footwear making. The Machines 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 Italy.

TECHNOLOGY DISSEMINATION CENTRES
With a view to provide 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 online connection Net-works of computers. Information regarding Technology offers and requests 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 a facility for the promotion of small-scale unit and also provide place to negotiate with the units from abroad, NSIC has 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 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 this is to provide diversified marketing support to this vibrant sector of the economy to reach the multidimensional and multi location markets. To maintain the entrepreneual spirit alive in the marketing efforts, NSIC has been continuing its emphasis on motivating he 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 Development Corporation 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. 2.3 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 an Integrated Marketing Support Programme in which bills pertaining to supplies made by small-scale units to eligible purchasers are discounted by NSIC up to 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 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 conformitywith the standards laid down by the buying agencies.One 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 organisations. 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 the changing economic environment, NSIC is laying greater stress in promoting direct and indirect exports. The small-scale sector is already paying 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 project in various countries such as Kenya, Tanzania, Nigeria, Botswana, Bangladesh, Sri Lanka, Ghana to name a few.

Special Export Programme
The Corporation has been endeavouring to increase share of Indian industries in purchases by United Nations Organisation, 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 as top supplier among the developing countries.

• To provide information to the members on the various export opportunities.
• To enable the members to work closely with the NSIC for export of products and projects.
• To supplement the role played by NSIC in inducting the small scale enterprise, into export and work as a well knitted team to execute export orders within the least possible time.
• To develop a direct link with the units having export potential and thereby arranging a proper information with such units who are capable of exporting.
• 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 consultants will be available to advise and solve the specific problems relating to manufacturing process for a particular SSI unit.

Industrial Design Centres
The "Made-in-India" label is, generally speaking not synonymous with 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 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 to affairs. To redress the problems of SSI units an 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 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 evolve a self sustaining 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 centre named as "Financial service Centres" at New Delhi, Mumbai, Ahmedabad, Bangalore and Goa.The Corporation will gradually expand these services all over the country in a 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 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 to 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.