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ROLE OF NSIC IN DEVELOPING THE MICRO, SMALL & MEDIUM SCALE INDUSTRIES OF INDIA

ACKNOWLEDGEMENT

I express my sincere gratitude to Mr. Deboprasad Ghatak (Sr. Branch Manager

of NSIC, Guwahati) and Mr. Jayanta saha (Business Development Manager of

NSIC, Guwahati) for providing me an opportunity to work on this project. I am

very grateful for their constant support and guidance throughout the duration of the

entire project. Acknowledgements are also due to all the other staff in NSIC,

Guwahati, Branch for providing information at various point of the project,

especially the discussions on the market. I also express my sincere thanks to Miss

Abha Grover (Faculty Mentor) for his sincere cooperation, guidance and support.

Lastly, I thank my parents, family members and friends for their constant support

in my endeavor.

ABHISHEK KAR

ROLL NO.- E-1

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DECLARATION

I Abhishek Kar student of New Delhi Institution of Management Batch – July -

2010-2012 declare that every part of the Project Report detailed ROLE OF NSIC

IN DEVELOPING THE MICRO, SMALL & MEDIUM SCALE INDUSTRIES

OF INDIA that I have submitted is original. I was in regular contact with the

nominated guide and contacted regularly for discussing the project.

Date of project submission :

Faculty’s Comments :

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

Signature of Faculty guide - …………………….

Name -

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TABLE OF CONTENTS

Ch Title Page No.

1. Executive Summary 6

2. Introduction 7 -8

3. Objectives of NSIC 9-10

4. Board Of Directors 11

5. Marketing strategies of NSIC 12-20

6. Performance and achivement 20-23

7. NSIC short term financing schemes

a. Raw materials assistance scheme 23-43

b. Bill discounting scheme 43 - 45

8. Details of work done 45-46

9. SWOT analysis 47-48

10. Research Methodology 48-50

11. Questionnaires 51 - 53

12. Data Analysis 54-63

13. Key findings 64

14.Suggestions 65

15. Bibliography 67

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Executive Summary

During the course of two months the project- detailed study of Role of NSIC in

promoting the micro, small and medium scale industries of India was carried

out in Guwahati city for determining the goodwill of NSIC and also to determine

the potential and efficiency of NSIC registration schemes for development of small

industries of Guwahati. The mode of sample methodology is random. The sample

unit is small industries whether registered or not registered under NSIC. Research

approaches observation and survey. The research instrument used is questionnaire.

The geographical condition of Guwahati favors a lot in the field of industrial

finance as being a hub of north east and the capital of ASSAM. It provides great

immense for the small scale industrial sector. The final conclusion after the

analysis done on the data acquired during the survey is that Guwahati is a fast

developing city with a great future for business units. All that needs to be done by

the NSIC is that create an awareness about the prevailing schemes and also

introduce new schemes prevailing to the market trend of Guwahati and they should

even keep a keen watch over the activities and schemes of other players in the city.

There are various steps that are being done to improve their marketing strategies as

being the leader in Raw materials and government purchase in the region to make

it customer friendly. NSIC is also giving its best effort to create awreness by

conducting programmes like Entrepreneurship Development Programme

(EDP)

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INTRODUCTION

National Small Industries Corporation Ltd. (NSIC), is an ISO 9001-2008 certified

Government of India Enterprise under Ministry of Micro, Small and Medium

Enterprises (MSME). The strategic objectives, for which the Corporation was

established, included “to aid, counsel, assist, finance, protect and promote the

interest of small industries in India.” With enactment of the Micro, Small and

Medium Enterprises Development (MSME) Act, 2006, medium enterprises also

came into ambit.

NSIC has been working to fulfill its mission of promoting, aiding and fostering the

growth of small industries and industry related micro, small and medium

enterprises in the country. Over a period of five decades of transition, growth and

development, NSIC has proved its strength within the country and abroad by

promoting modernization, upgradation of technology, quality consciousness,

strengthening linkages with large medium enterprises and enhancing exports -

projects and products from small enterprises.

NSIC operates through countrywide network of offices and Technical Centres in

the Country. To manage operations in African countries, NSIC operates from its

office in Johannesburg, South Africa. In addition, NSIC has set up Training cum

Incubation Centre & with a large professional manpower, NSIC provides a

package of services as per the needs of  MSME sector.

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NSIC carries forward its mission to assist small enterprises with a set of specially

tailored schemes designed to put them in a competitive and advantageous position.

The schemes comprise of facilitating marketing support, credit support, technology

support and other support services.

NSIC has embarked upon creating self-employment opportunities by imparting

training in entrepreneurship, building and skill development to unemployed

persons who intend to set up their small enterprises or seek employment

opportunities . for this purpose, NSIC is operating through its Technical Service

Centers at various locations across the country. NSIC has established innovative

low cost technology incubators for rapid incubation for small enterprise

establishment at its Technical Centers in india.

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OBJECTIVES OF NSIC FOR REGISTERED

INDUSTRIES

We shall endeavor to provide effective and prompt service so as to achieve

total customer satisfaction at all times. We shall continuously upgrade our

service quality, Communication facilities and the skill sets to meet customer

requirements efficiently.

We shall constantly adapt, innovate and refine our processes in line with

global business trends to maintain credibility and leadership in our field.

We commit ourselves for fair play, transparency and sincere endeavor for

the promotion and growth of Micro, small & Medium Enterprises.

We shall strive to achieve operational efficiency by attaining better

productivity and profitability. We shall abide by statutory and legal

regulations while carrying out our activities.

OBJECTIVES OF NSIC AS AN ORGANISATION (SELF OBJECTIVES)

Enhance reach of the Corporation resulting in growth in its business.

To achieve operational efficiency and self-sustenance by attaining better

productivity and profitability.

To upgrade the professional skills of all employees keeping in pace with

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business needs.

To provide safe, clean, hygienic & congenial work environment for effective

contribution by every employee.

Additional NTSC/NTSECs Objectives are as below:

To provide training for skill upgradation of trainees leading to

opportunities for their employment/self employment.

To provide common facility services to industries for enhancing their

competitiveness and quality.

ORGANISATIONAL SET-UP

The Policy guidelines to the Corporation are provided by the Board of Directors

consisting of a full time Chairman-cumManaging Director; two Functional

Directors; two Government Nominee Directors, one SIDBI Nominee Director and

six Nonofficial Part -time Directors. The Corporation has a dedicated team of

professionals at all levels and operates through 123 offices located all over India

and one office located at Johannesburg (South Africa).

BOARD OF DIRECTORS AS ON 30.11.2010

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NATIONAL SMALL INDUSTRIES CORPORATION LTD.

S.NoNAME PARTICULARS TELEPHONE No.

1. Dr. H.P. KUMAR Chairman-cum-Mg.DirectorNSIC Ltd. “NSIC Bhavan”,Okhla Indl. Estate,New Delhi

011-26927172 / 26926067Fax: 011-26926820Email: cmd@nsic.co.in

2. SHRI RAVINDRA NATH Director (Finance) NSIC Ltd.“NSIC Bhavan”, Okhla Indl. Estate,New Delhi

011-26319452Fax -011-26927758Email:dfnsic@gmail.com dfin@nsic.co.in

3. SHRI P. UDAYA KUMAR Director (Plg. & Mkg.) NSIC Ltd. “NSIC Bhavan”,Okhla Indl. Estate, New Delhi

011-26927327Fax: 011-26927307Email : dpm@nsic.co.in

4. SHRI AMARENDRASINHA

Joint Secretary ,Ministry of MSME, Udyog BhavanNew Delhi

Tele Fax 011-23062336 011-23063283Email: js.sme@nic.inamrsinha@gmail.com

5. SH. R.K. MANCHANDA Economic Advisor,Ministry of MSME,Udyog BhavanNew Delhi

011-23063433Email: manchanda@nic.in

6. SH. RAKESH REWARI Deputy Managing DirectorSIDBI, SME Development Centre,C-11, G-BlockBandra Kurla ComplexBandra (East)Mumbai - 400 051

022-26520025Fax : 022-26541124Email: proy@sidbi.in

7. SH.SIRAJUDDINQURESHI

Managing DirectorM/s. Hind Agro Indus. Ltd.A-1, Okhla Indl. Area Phase-INew Delhi-110 020

011-26372786-92Fax 011-26817941-42Email: sirajuddinq@yahoo.com

8. SH. RAJIV CHAWLA DirectorM/s. Jai Raj Ancillaries P. Ltd.3B/23, B.P., NIT,Faridabad-121001

0129-2412089/2414468Fax 0129-4055501Email:rajivchawlaindia@yahoo.comrajiv@jairajgroup.comjapl@jairajgroup.com

Marketing Strategies

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Marketing, a strategic tool for business development, is critical to the growth and

survival of small enterprises in today's intensely competitive market. NSIC acts as

a facilitator to promote small industries products and has devised a number of

schemes to support small enterprises in their marketing efforts, both in an outside

the country. These schemes are briefly described as under:

Consortia and Tender Marketing: 

Small Enterprises in their individual capacity face problems to procure & execute

large orders, which inhibit and restrict their growth. NSIC, accordingly adopts

Consortia approach and forms consortia of units manufacturing the same products,

thereby easing out marketing problems of SSIs. The Corporation explores the

market and secures orders for bulk quantities. These orders are then distributed to

small units in tune with their production capacity. Testing facilities are also

provided to enable units to improve and maintain the quality of their products

conforming to the standard specifications.

Financing for Marketing Activities (Short term)

NSIC facilitates financing for marketing actives such as Internal Marketing,

Exports and Bill Discounting.

Finance through syndication with Banks

In order to ensure smooth credit flow to small enterprises, NSIC is entering into

strategic alliances with commercial banks to facilitate long term / working capital

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financing of the small enterprises across the country. The arrangement envisages

forwarding of loan applications of the interested small enterprises by NSIC to the

banks and sharing the processing fee.

 

Performance and Credit Rating Scheme for small industries

To enable small enterprises to ascertain the strengths and weaknesses of their

existing operations and take corrective measures to enhance their organizational

strength. NSIC is operating a Performance and Credit Rating Scheme through

empanelled agencies like ICRA, ONICRA, CRISIL, FITCH, CARE,

BRICKWORK RATINGS and SMERA. Small enterprise has the liberty to choose

any of the rating agencies empanelled with NSIC. Rating agencies will charge the

credit rating fee according to their policies. The benefits to small enterprises are as

follows:

An independent, trusted third party opinion on capabilities and credit

worthiness of small enterprises.

Good rating to enhance the acceptability of the small enterprise with Banks.

FIs, customers and buyers.

Facilitate prompter credit decisions from Banks on proposals of SSI units.

75% of the credit rating fee subject to a maximum of Rs. 25,000/- will be

reimbursed to the small enterprise having a turnover upto Rs.50 lakh by way

of grants.

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75% of the credit rating fee subject to a maximum of Rs. 30,000/- will be

reimbursed to the small enterprise having a turnover above Rs.50 lakh to

Rs.200 lakh by way of grants.

75% of the credit rating fee subject to a maximum of Rs. 40,000/- will be

reimbursed to the small enterprise having a turnover above Rs.200 lakh by way of

grants.

Insurance of Export Credit for Micro and Small Enterprises

NSIC is facilitating micro and small enterprises to insure their export credits by

entering into strategic alliance with Export Credit Guarantee Corporation of India

Limited (ECGC). MSEs would be helped in insuring their export credits through

any office of the Corporation, located all over the country. This arrangement is

made to strengthen pr Credit Support: NSIC facilitates credit requirements of

small enterprises in the following areas

Financing for procurement of Raw Material (Short term)

NSIC's Raw Material Assistance Scheme aims at helping Small Enterprises by way

of financing the purchase of Raw Material (both indigenous & imported). The

salient features are

1. Financial Assistance for procurement of Raw Materials upto 90 days.

2. Bulk purchase of basic raw materials at competitive rates.

3. NSIC facilitates import of scares raw materials.

4. NSIC takes care of all the procedures, documentation & issue of letter of

credit in case of imports.

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Single point Registration for Government Purchase: NSIC operates a single

Point Registration Scheme under the Government Purchase Programme, wherein

the registered SSI units get purchase preference in Government purchase

programme, exemption from payment of Earnest Money Deposit etc.

Issue of tender sets free of cost.

Advance intimation of tenders issued by DGS&D.

Exemption from payment of earnest money.

Waiver of security deposit up to the monetary limit for which the unit is

registered.

Issue of competency certificate in case the value of an order exceeds the

monetary limit, after due verification.

B2B Web Portal :  NSIC Infomediary is a Business-to-Business (B2B) Portal that

has been established to give online services for small and medium time importers,

exporters and service providers in India. The portal is an initiative to provide

business opportunities to small businesses, firms and small scale units to expand

further. Thus, anyone involved in business activities and wants to utilize the

strength and visibility of Internet can join NSIC Infomediary. Those who look for

promotion and prospect for their trade and products/services can also join NSIC

Infomediary.

Marketing Intelligence : Collect and disseminate both domestic as well as

international marketing intelligence for the benefit of MSMEs. This cell, in

addition to spreading awareness about various programmes / schemes for MSMEs,

will specifically maintain database and disseminate information.

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Exhibitions and Technology Fairs: To showcase the competencies of Indian SSIs

and to capture market opportunities, NSIC participates in select International and

National Exhibitions and Trade Fairs every year. NSIC facilitates the participation

of the small enterprises by providing concessions in rental etc. Participation in

these events exposes SSI units to international practices and enhances their

business prowess.

Buyer-Seller meets: Bulk and departmental buyers such as the Railways, Defence,

Communication departments and large companies are invited to participate in

buyer-seller meets to enrich small enterprises knowledge regarding terms and

conditions, quality standards, etc required by the buyer. These programmes are

aimed at vendor development from MSMEs for the bulk manufacturers.

Technology Support

Technology is the key to enhancing a company's competitive advantage in today's

dynamic information age. Small enterprises need to develop and implement a

technology strategy in addition to financial, marketing and operational strategies

and adopt the one that helps integrate their operations with their environment,

customers and suppliers.

NSIC offers small enterprises the following support services through its Technical

Services Centres and Extension Centres

1. Advise on application of new techniques

2. Material testing facilities through accredited laboratories

3. Product design including CAD

4. Common facility support in machining, EDM, CNC, etc.

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5. Energy and environment services at selected centres.

6. Classroom and practical training for skill upgadation

Infomediary Services

Information today is becoming almost as vital as the air we breathe. We need it

every minute of our working lives. With increase in competition and melting away

of international boundaries, the demand for information is reaching new heights.

NSIC, realizing the needs of MSMEs, is offering Infomediary Services which is a

one-stop, one-window bouquet of aids that will provide information on business,

technology and finance, and also exhibit the core competence of Indian SMEs. 

Membership Benefits

Tender & Trade Information.

Banner display on NSIC Website

Access to a wide range of technologies from India and abroad.

Access to national and international business leads, JV opportunities and

trade information.

Comprehensive information on Government policies, rules and regulations,

schemes and incentives.

Access to industrial databases and member's directory.

Various value added, specialized services for members of Infomediary

Service.

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Software Technology Parks

NSIC Software Technology Parks (STPs) facilitate small enterprises in setting up

100% export-oriented units for software exports. They also act as nodal point to

activate software exports directly through NSIC. These STPs extend support in

terms of the requisite infrastructure to the small enterprises to start business

operations with a minimum lead time.The scheme is governed by STPI regulations

of the Ministry of Information Technology, Government of India. NSIC

established the first STP at Okhla, New Delhi in 1995 and second in Chennai in

2001. Several small enterprises have taken advantage of these parks and

contributed export earnings to the exchequer.

Incubation of unemployed youth for setting up of New Micro & Small

enterprises

This programme facilitates setting up of new enterprises all over the country by

creating self-employment opportunities for the unemployed persons. The objective

of this scheme is to facilitate establishment of new small enterprises by way of

providing integrated services in the areas of training for entrepreneurial skill

development, selection of small projects, preparation of project profiles/reports,

identification and sourcing of plant, machinery and equipments, facilitating

sanction of credit facility and providing other support services in order to boost

the development of small enterprises in manufacturing and services sectors. 

International Cooperation

NSIC facilitates sustainable international partnerships. The emphasis is on

sustainable business relations rather than on one-way transactions. Since its

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inception, NSIC has contributed to strengthening enterprise-to-enterprise

cooperation, south south cooperation and sharing best practices and experiences

with other developing countries, especially those in the African, Asian and Pacific

regions. The features of the scheme are:

Exchange of Business / Technology missions with various countries.

Facilitating Enterprise to Enterprise cooperation, JVs, Technology Transfer

& other form of sustainable collaboration.

Explore new markets & areas of cooperation:

Identification of new export markets by participating in sector- specific

exhibitions all over the world.

Sharing of Indian experience with other developing countries

International Consultancy Services

For the last five decades, NSIC has acquired various skill sets in the development

process of small enterprises. The inherent skills are being networked to offer

consultancy services for other developing countries. The areas of consultancy are

as listed below:

1. Capacity Building

2. Policy & Institutional Framework

3. Entrepreneurship Development

4. Business Development Services

PERFORMANCE AND ACHIVEMENT

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National Small Industries Corporation Ltd (NSIC), a Government of India

enterprise under the aegis of Ministry of MSME, achieved record operational and

financial performance in terms of gross volume of business and profitability in the

recently concluded financial year 2009-10. The year witnessed the Corporation

achieved new heights on all parameters. There was substantial improvement in

enhancing the company’s outreach and its volume of operations. With the opening

of new offices the Corporation expanded its reach to serve larger number of

MSMEs, making the total number of NSIC offices 123.  The Business Turnover of

the Corporation for the year jumped to Rs. 4488  crore  over the previous year’s

turnover of Rs. 3508 crore.

NSIC continued with its efforts to provide various raw materials like steel,

aluminum, zinc, copper, paraffin wax etc to MSMEs through arrangements made

with bulk manufacturers of these materials. In addition, the Corporation also

started distribution of Coal to MSMEs in West Bengal. Total raw material

facilitation to MSMEs increased from 302164 MTs in the year 2008-09 to 355719

MTs in the year 2009-10.

The Corporation during the year provided credit support of Rs. 1056 crore to

MSMEs as against Rs. 688 crore provided during the previous financial

year, registering a growth of 53%.

In the year 2009-10, total 3327 new units were registered under Single Point

Registration Scheme, while in the previous year 2677 units were registered.

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Under B2B portal, total 3802 members were added during the year 2009-10,

as against 2808 members made under Infomediary Services in the year

2008-09.

The Corporation’s revenue from its above mentioned two membership

schemes during the year 2009-10, increased to Rs. 5.55 crore from Rs. 4.12

Crore in the year 2008-09, registering the growth of 35%.

The performance of NSIC’s Technical Centres also showed remarkable

improvement in the year 2009-10. The aggregate income of the technical

centres rose from Rs. 12.54 crore in the year 2008-09 to Rs. 17.16 crore in

the year 2009-10, registering a growth of 37%.

Under the Performance & Credit Rating Scheme, total 7531 micro & small

enterprises were rated during the year, as against 5011 units rated in the

previous year.

NSIC organized 963 Marketing Promotion events including participation /

organization / co-sponsoring of exhibitions, buyer-sellers meets and

marketing campaigns as compared to 874 events in the previous year 2009-

10. NSIC’s ‘Techmart 2009’ organized at the India International Trade Fair

during November, 2009 was awarded ‘Gold Medal’ for outstanding display

of the MSMEs technology and products.

During the year, NSIC continued its initiative to set up new Training-cum

Incubation centres under Public-Private Partnership (PPP) mode for the

purpose of inculcating entrepreneurial skills in the youth by way of skill

development through which they become employable or create their own

enterprises. So far, 45 such centres have been established at various

locations in the country. These are in addition to three incubation centres

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opened at our technical centres. During the year, 8364 candidates were

trained at these centres.

The overall improved performance resulted in achievement of higher profit. The

Corporation, during the year achieved operating profit of Rs. 28.13 crore, showing

a jump of 205.43% over the operating profit of Rs. 9.21 crore in the previous

financial year. After amortization of VRS expenditure of Rs. 2.12 crore, the

Corporation has earned a net profit (before tax) of Rs. 25.94 crore, as compared to

Rs. 6.92 crore earned during the previous year.

The major highlights of the achievements of the Corporation for the financial year

2009-10 are briefly summed up here-below:

Under the Performance & Credit Rating Scheme, total 7531 micro & small

enterprises were rated during the year, as against 5011 units rated in the previous

year.

NSIC organized 963 Marketing Promotion events including participation /

organization / co-sponsoring of exhibitions, buyer-sellers meets and marketing

campaigns as compared to 874 events in the previous year 2009-10. NSIC’s

‘Techmart 2009’ organized at the India International Trade Fair during November,

2009 was awarded ‘Gold Medal’ for outstanding display of the MSMEs

technology and products.

During the year, NSIC continued its initiative to set up new Training-cum

Incubation centres under Public-Private Partnership (PPP) mode for the purpose of

inculcating entrepreneurial skills in the youth by way of skill development through

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which they become employable or create their own enterprises. So far, 45 such

centres have been established at various locations in the country. These are in

addition to three incubation centres opened at our technical centres. During the

year, 8364 candidates were trained at these centres. 

NSIC SHORT TERM FINANCING SCHEMES

NSIC Short Term Financing Schemes will comprise of the following:

- Raw Material Assistance

- Bill Discounting

Each of these schemes are being separately discussed hereunder:-

Raw Material Assistance

1. NAME OF THE SCHEME

The Scheme is called as the ‘RAW MATERIAL ASSISTANCE SCHEME’

(RMA).

2. PURPOSE OF THE SCHEME

In order to assist the Micro, Small and Medium Enterprises in procuring their

essential raw material(s), NSIC arranges to provide raw material as per specific

needs and requirement of the unit(s). The facilitation under the scheme is towards:

Procurement of bulk raw materials namely Aluminium, Zinc, Copper, Iron & Steel

etc. which are arranged through NSIC entering into a Memorandum of

Understanding with their manufacturers. Other Raw Materials wherein NSIC

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merely makes direct payment to the supplier / manufacturer of the raw material on

the specific request of the Micro, Small and Medium Enterprises.

3. TYPES OF ASSISTANCE

The assistance under Raw Material Assistance is being provided in the

following ways:

1)Raw Material Assistance against security of Bank Guarantee of approved

banks/ Fixed Deposit Receipts ofnationalized banks / Security Deposit

Receipts of NSIC.

(II)Raw Material Assistance Scheme: Agency Sale /bulk

supplies including Godown operations and Scheme on

arrangement & distribution of Iron and steel for MSMEs.

(a) Against Advance Payment made by the MSMEs.

(b) With financial assistance provided against the security of Bank Guarantee.

(III)Raw Material Assistance Scheme: Lock & Key Arrangements.

(Presently no assistance is being provided under lock & key arrangement.

Reference in the manual has been made to explain the procedure for disbursements

made earlier since in some accounts outstandings are appearing under this

scheme).

PROCESSING FEE

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Processing Fee shall be charged at the time of fixing of limit, enhancement of limit

and renewal of limit as per the rates mentioned below:

i) At the time of processing of application for fixing of limit:

a. upto Rs.25 lacs : Rs. 2,500/-

b. above Rs.25 lacs and upto Rs.50 lacs : Rs. 5000/-

c. above Rs.50 lacs and upto Rs.1 crore : Rs.10,000/-

d. above Rs.1 crore : 0.1% of the assistance applied for.

PRE-SANCTION INSPECTION

Pre-sanction Inspection of the unit will be carried out jointly by the official of the

executive and finance side at the NSIC Office receiving the application. This

inspection must be carried out before the sanction of facility. The factory

inspection Report will be prepared and submitted jointly in the prescribed form.

CREDITWORTHINESS REPORT

To check the financial position and borrowings made by the unit from other

sources, Bank’s Confidential Report should be obtained from the unit’s

banker(s)/financial institution(s). However if the Bank Guarantee proposed as

security is being issued by the bank from whom the unit has availed credit

facilities, the obtaining of banker’s confidential report from said bank may not be

insisted upon. The proposal will be sanctioned by the Competent Authority only

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after being satisfied about the unit’s credit worthiness, its need for assistance and

the securities offered by it.

EVALUATION OF THE PROPOSAL

On receipt of application duly supported by all prescribed documents, the case will

be processed by preparing an appraisal note.

The processing of a proposal would encompass the following:

Ø Preparing of an appraisal note, and

Ø Handling of the proposal through various levels / officersEach of these two

aspects has been explained below:

PREPARING OF APPRAISAL NOTE

As explained above, appraisal format has been prescribed, on which the detailed

appraisal of the unit has to be carried out. The contents of the appraisal form have

to be carefully filled as the details provided therein will have a major bearing on

the decision making. The various aspects covered in the appraisal note has been

explained here under which may be remembered while finalizing the

appraisal note:-

a. Particulars of the Applicant Unit

Full particulars of the applicant firm/unit have to be mentioned against all the

columns prescribed in the appraisal form. Complete address of the unit separately

of its offices and factory with telephone number should be given. While writing the

number and date of MSME Registration, it should be indicated whether the

registration is provisional or final. If the unit is located in a backward / Hilly area,

the category of backward area has to be mentioned. If there are any other

Associates/ Sister Concerns of the applicant unit, the particulars of such concerns

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have also to be mentioned. Ascertaining of inter-unit transactions (if any) between

all associate units and the Net Worth of the group/promoters is also required. If any

other company holds majority stack i.e. 50% or more in the equity of applicant

unit, it should be thoroughly examined in order to ascertain whether the applicant

unit fulfils the norms prescribed for MSMEs.

b. Particulars of Promoters

Under this heading, complete details about the promoters with their qualificatio n

and past experience should be given. Whether the promoter’s past experience is

relevant and adequate for successful implementation of the Project and itssmooth

running has to be indicated.

c. Project / Line of Activity

Under this heading, the nature of activity and the products to be manufactured have

to be mentioned.

d. Conduct of Account with other Financial Institutions and Banks

In case of existing units, the experience of its dealings with other Financial

Institutions and Banks must be ascertained so as to see whether any defaults have

been committed in meeting the commitment of other Financial Institutions/Banks.

The details of loans availed from other Financial Institutions and credit limits from

Banks with theirnature & amount should be indicated under this heading. If the

applicant unit has not availed any credit limit or loan from Bank/Financial

Institutions, it is possible that its other Associates / Sister concerns might have

availed the same from other Bank’s/ Financial Institutions. Their dealings should

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also be got examined and the experience and conduct of their account should be

reported in the appraisal note.

e. Comments on the Financial Data provided by the Applicant Unit.

In case of existing unit financial data of previous year, current year and for next

year should be examined. Net Sales should be given net of excise duty. To arrive at

the net profit before interest and tax, the interest on Term Loans/Hire Purchase /

Leasing only should be added back to the pre tax profit. However, the interest on

working capital is not to be added back in the above amount. Tangible Net Worth

is to be worked out by subtracting all intangible assets like goodwill, preliminary

and pre-operative expenses,

accumulated losses etc. from the amount of paid up capital and free reserves.

Capital employed by the unit is also to be indicated and it is to be worked out by

adding net working capital to the fixed assets or alternatively by adding term

liabilities in the amount of Net worth. In addition to this, Current ratio has to be

worked out in order to ascertain the unit’s contribution to the project cost and

liquidity position of the enterprise.

f. Nature and Amount of assistance sought

Under this heading, the requirement of applicant’s unit for assistance from NSIC

with the kind of facility and amount is to be reported.

g. Securities Proposed:

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The nature and amount of securities proposed to be provided against the assistance

sought from NSIC should be clearly mentioned.

h. Recommendations:

Under this heading, the recommendations made by the recommending officers and

sanction by the competent authority have to be recorded viz. Nature of facility,

amount recommended, terms & conditions should be clearly mentioned under this

heading.

DOCUMENTATION FOR RAW MATERIAL ASSISTANCE

Before disbursement of assistance under Raw Material Assistance Scheme the

following documents will be obtained by the designated officers in the Business

Development Division, from persons authorized by the unit.

i. Agreement for Raw Material Assistance Scheme

ii. Material Receipt Note

iii. Demand Promissory Note

iv. Letter Of Continuity

v. Bank Guarantee From Approved Bank / SDR / FDR

vi. Personal Guarantee of The Directors / Partners / Proprietor.

vii. Post Dated Cheques

The formats of the above documents have been prescribed in the Legal

Documentation Manual. (MNL.LDOC.01). For all cases even mthough within the

power of Zonal head but where any document to be executed requires any

amendment from the format prescribed as per the Legal Documentation Manual,

prior approval from head of law division at head office must be obtained regardless

the value of assistance / lim it to be sanctioned in any case.

28

It is to be ensured that proper documentation is being done before the Corporation

invests its funds for assistance to MSMEs. The following procedures should be

adopted:

i. In all cases where the limit sanctioned are up to Rs. 150 lakh and the Zone

is headed by Zonal General Manager (and any other officer exercising the

j. powers of ZGM as per approval of head office), disbursement against the

sanctioned limits

k. shall be made only after all the prescribed documents including security

documents have been executed and obtained and their legal vetting has been

done by the

authorized Law officer at any branch in the Zone.

ii. In all cases where the limit sanctioned are up to Rs. 200 lakh and the Zone is

headed by Chief General Manager, disbursement against the sanctioned limits shall

be made only after all the prescribed documents including security documents have

been executed and obtained and their legal vetting has been done by the

authorized Law officer at any branch in the Zone.

iii. In all CASES where limits sanctioned are beyond the values mentioned in i & ii

above, disbursements against the sanctioned limits shall be made only after all the

prescribed documents including security documents have been executed and

obtained and their legal vetting has been done by Head of the Law Division at head

office. The documents and post dated cheques collected from the borrowing units

should be deposited with the designated officers of every NSIC Office, who shall

29

keep the se documents and maintain a register for their receipt and release. These

documents shall be kept in custody preferably in a fire proof cabinet.

DELEGATION OF SANCTIONING POWER:-

Sanction of Proposals received under Raw Material Assistance Scheme can be

done as per sub delegation of powers conveyed in the ‘Manual on Sub Delegation

of Powers’ issued by the Company Secretary and changes made therein from time

to time. Detailed guidelines contained in the manual of sub delegation of powers

have to be complied with while exercising the powers subdelegated. However, the

following deserves.

Maximum exposure to a single unit under Raw Material Assistance and / or

Bill Discounting against the securityof BG

Maximum exposure to a single unit under these schemes is Rs. 300 Lac. (This

limit is effective from 01.05.2008)

In the following cases, the limit for maximum exposure shall be considered up to

Rs. 500 Lac (This limit is effective from 26.03.2009) in case:

A. all the outstanding dues against the existing sanctioned limits as on the date of

considering the proposal must be within 90days.

b. the unit must furnish bank guarantee(s) only from nationalized banks for the

proposed enhancement in the limits.

DISBURSEMENT :-

30

The following disbursement procedure is to be adopted while extending the

assistance to the unit:

# After sanction of the proposal the disbursement will be made on completion of

documentation and all other requirements as stipulated in the sanction letter.

# The unit while requesting for disbursement against the limit sanctioned should

furnish the following documents:

i) Proforma Invoice/ Invoice.

ii) Materials Receipt Note

iii) Unit’s Request

In case of first assistance, after sanction of the limit, the invoices / material receipt

note should not pertain to the period before the date of sanction of limit. In case of

subsequent assistance, wherein there is huge time gap between the date of invoice

& the date of approaching NSIC for assistance, a confirmation has to be

obtained from the supplier unit(s) that the bills for which assistance is being sought

have not already been paid to the supplier. Only after obtaining confirmation from

the supplier unit, should NSIC process such requests. In any case invoices should

not be more than 60 days old.

#In case the assistance has been extended against proforma invoice, the unit must

provide copy of the original invoice immediately after receipt of the material.

NSIC Office must ensure to receive the copy of the original invoice before

extending further assistance to the unit.

# NSIC Office should extend assistance maximum to 95% of the Bank Guarantee /

FDR /SDR Value, as it would ensure the coverage of the interest & service

31

charges. However in no case, the outstanding amount (comprising of principal,

interest, service charges & penal interest) should be allowed to exceed the

value of Bank Guarantees / FDRs / SDRs taken as Security.

# The payment should be released only in favour of supplier(s) of raw material and

under no circumstances should be given to the applicant unit.

RATE OF INTEREST

The revised rate of interest as mentioned above shall be applicable on the all

proposals sanctioned and disbursed on or after the date of its applicability from

time to time. The principal amount outstanding as on the date of applicability of

revised rate of interest but pertaining to the assistance already granted and

disbursed, shall also attract revised rate of interest. The revision in the rate of

interest should also be intimated to the units availing assistance from NSIC.

For cases covered other than bank guarantee, the interest rate to be charged in each

case will be decided after considering the following factors:-

i) Nature of securities offered by the unit.

ii) Financial position of the unit

iii) Experience of party’s dealing and repayment performance.

iv) In case of units which approach NSIC for assistance for the first time, the

higher rate of interest should be charged initially and subsequently on satisfactory

payment performance & dealing, concession in interest can be

considered.

32

v) Profitability position of the NSIC Office- it is to be ensured that the Office

should be able to recover the cost of funds and all the overheads from its revenue

income. The decision in fixing the interest rate should be taken by Head Office on

case to case basis.

The revised rate of interest as mentioned above shall be applicable on the all

proposals sanctioned and disbursed on or after the date of its applicability from

time to time. The principal amount outstanding as on the date of applicability of

revised rate of interest but pertaining to the assistance already granted and

disbursed, shall also attract revised rate of interest. The revision in the rate of

interest should also be intimated to the units availing assistance from NSIC. For

cases covered other than bank guarantee, the interest rate to be charged in each

case will be decided after considering the following factors:-

i) Nature of securities offered by the unit.

ii) Financial position of the unit

iii) Experience of party’s dealing and repayment performance.

iv) In case of units which approach NSIC for assistance for the first time, the

higher rate of interest should be charged initially and subsequently on satisfactory

payment performance & dealing, concession in interest can be considered.

v) Profitability position of the NSIC Office- it is to be ensured that the Office

should be able to recover the cost of funds and all the overheads from its revenue

income. The decision in fixing the interest rate should be taken by Head

Office on case to case basis.

RMA I

33

– RAW MATERIAL ASSISTANCE AGAINST THE SECURITY OF BANK

GUARANTEE/SDR/FDR.

Procedure for providing of assistance has been ex plained in para 4 at page no 16

to 25 above. The guidelines w.r.t. securities which can be accepted are given here

under. To safeguard the assistance proposed to be extended to the units under Raw

Material Assistance Scheme, the following liquid Security should be obtained:-

i. Bank guarantee of approved banks by Head Office.

ii. Security Deposit Receipt of NSIC.

iii. Fixed Deposit Receipt of Nationalized Banks.

1 BANK GUARANTEE

Security by way of Bank Guarantee should be from the Banks as approved by

Head Office, equivalent to the value of the assistance including service charges and

interest thereon. Presently the following banks stand approved for accepting their

bank guarantees as security:

i. All Nationalized banks including IDBI Bank Ltd.

ii. State Bank of India and it subsidiaries.

In addition to the aforesaid banks, Head Office on receipt of the requests from its

Field Offices has approved the following banks for accepting Bank Guarantee as

Security.

34

In addition to the aforesaid banks, Head Office on receipt of the requests from its

Field Offices has approved the following banks for accepting Bank Guarantee as

Security:

1 Axis Bank Ltd.

2. Barclays Bank.

3. Catho lic Syrian Bank Ltd.

4. China Trust Commercial Bank

5. City Union Bank.

6. Dhanalakshmi Bank Ltd.

7. HDFC Bank Ltd.

8. ICICI Bank Ltd.

9. IndusInd Bank.

10. ING Vysya Bank Ltd.

11. J&K Bank Ltd.

12. Karnataka Bank Ltd.

13. Karur Vysya Bank Ltd.

14. Kotak Mahindra Bank.

15. Lakshmi Vilas Bank Ltd.

16. Nainital Bank Ltd.

17. SIDBI.

18. South Indian Bank.

19. Standard Chartered Bank.

20. The Federal Bank Ltd.

21. Tamilnad Mercantile Bank.

22. Yes Bank Ltd..

35

23. Citi Bank.N.A.

24. Pragathi Gramin Bank.

RMA II

- RAW MATERIAL ASSISTANCE SCHEME: - AGENCY SALE / BULK SUPPLIES

In order to facilitate the MSMEs in procurement of their basic raw material at a

competitive price, the Corporation enters into a Memorandum of Understanding

with bulk manufacturers of certain industrial raw materials. This arrangement is

backed by the specific requirements from the MSMEs. In the said arrangement, the

Corporation mobilizes the required raw material for the MSMEs at most

competitive prices and also economizes it further by sharing certain discounts

arising out of the arrangement like quantity discount and other discounts (i.e.

MOU discount, Cash Discount & PSU Discount) available from time to time.

Thus for the procurement of bulk raw material, NSIC enters into Memorandum of

Understanding with the manufacturers of such raw material. The process

distribution of material under such arrangements involves;

i. No material handling by NSIC where by the MSMEs directly procured from the

bulk manufacturers delivery location,

ii. Acts as material handling agencies on behalf of such manufactures i.e. does

godowning activities. Under the scheme for arrangement and distribution of raw

material as per allocation made by the bulk manufacturers, MSMEs are

facilitated by arranging raw material as per their requirements. The scheme on

arrangement and distribution of iron and steel is later discussed in detail.

36

For facilitating the procurement of raw material, the MSMEs can adopt either of

the two payment procedures;

Ø Make advance payment for the material to be procured , or

Ø Avail financial assistance from NSIC against the security of

RMA – II A AGAINST ADVANCE PAYMENT

Under this arrangement, the business for booking of raw materials on bulk basis is

done on receipt of request from the units located all over India. The following

modus operandi is adopted:

a. On the basis of requirements from the MSMEs, the

concerned NSIC office with each MSMEs, signs MOU

separately. Thereafter, composite order is placed on the

bulk supplier/ manufacturer of the specific product by the

respective NSIC office.

b. Sales Tax Form ‘C’/declaration as per local laws is also

issued to the manufacturers against the composite order.

b. Specific request / indent from the unit is received along with the advance

payment for lifting of the required material. the unit in the name of NSIC, is

submitted at the NSIC Office facilitating such arrangement. It must be ensured that

unit is registered under Sales Tax for the items being purchased. The request from

the unit must also contain the following details:

i. Material specification,

ii. Quantity,

iii. Name of the transporter,

iv. Place from where the material is proposed to be lifted.

v. Delivery destination

vi. Payment of Service Charges (as applicable)

37

c. The unit should also give an undertaking that in case of any delay in the delivery

of the materials, the Corporation will not be held responsible.

d. Branch office has to process the delivery indent received from the unit. Branch

office will also ensure receipt of proper ‘C’ Form furnished by the unit.

e. Concurrence by Accounts Section confirming the receipt/realization of advance

payment made by the unit.

f. On obtaining financial concurrence, the delivery order is placed by the Branch

office on the bulk suppliers of raw materials. Payment is also released favoring

bulk suppliers along with the delivery order.

Service Charges

Service Charges @ 0.25% of the value of the material booked is charged from the

MSMEs along with the request.

RMA–II B AGAINST THE SECURITY OF BANK GUARANTEE

(as explained at RMA I)

RMA - IIC RAW MATERIAL ASSISTANCE SCHEME: - AGENCY SALE

/ BULK SUPPLIES – GODOWN’S OPERATIONS.

NSIC act as intermediary agency for providing the raw material to MSMEs on

behalf of the bulk suppliers (manufacturers). The following modus operandi is

adopted:

1. Concerned NSIC Office hires the godown to facilitate movement of material

from the bulk supplier (manufacturer to the buyer).

38

2. Buyer Unit would directly make the payment to the bulk supplier. NSIC would

not be responsible for any financial involvement.

3. Bulk supplier sends dispatch instructions of the material to NSICsoffice/

godown for making arrangement for lifting of material on the basis of requirement

of buyer unit(s).

4. On receipt of the material from bulk supplier, NSIC office delivers the material

to the buyer unit on receipt of delivery order is sued by the Bulk Supplier.

5. Branch office would maintain record for receipt and issue of material.

6. Respective Branch office would raise the bill on Bulk supplier for service

charges on monthly basis on the basis of material received /lifted during the month

as per agreed terms.

7. Hiring of godown and appointment of service provider for managing the

godown activities shall be as per sub delegation outlined in the ‘Manual on Sub-

Delegation of Powers’ and guidelines contained in the ‘NSIC Purchase Procedure’.

RMA II D RAW MATERIAL ASSISTANCE SCHEME: -

AGENCY SALE / BULK SUPPLIES –

SCHEME ON ARRANGEMENT & DISTRIBUTION OF

IRON & STEEL FOR MSMEs

1. ELIGIBILITY FOR COVERAGE UNDER THE SCHEME:

1. a The MSMEs engaged in manufacturing activities and registered with

Directorate of Industries / District Industries Centre.

1. b Government Departments are also eligible for supplies out of allocated

material. The overall ceiling for all Government Departments has been kept

39

at 30% of the allocated material. For eligible units described at (a) above, Ministry

of Steel has stipulated that the following documents be obtained:

i) Certificate of MSMEs Registration with Directorate of Industries /

District Industries Center.

ii) Document to certify the assessed manufacturing capacity of each

of the MSMEs.

iii) Prima facie evidence in respect of each of the MSME being in operation.

Through this mechanism Ministry of Steel aims to discourage the units indulging

in trading of such materials.

RMA –IIIRAW MATERIAL ASSISTANCE UNDER LOCK & KEYARRANGEMENTS

(Presently no assistance is being provided under lock & key arrangement.

Reference in the manual has been made to explain the procedure for disbursements

made earlier since in some accounts outstandings are appearing under this

scheme).

1. PURPOSE

Under this arrangement, the raw material(s) procured is stored in the godown of

the Central Warehousing Corporation / State Warehousing Corporation’s

Godowns. The raw material so procured and stored can be provided to the unit

after making payments thereof. The unit is , however, expected to lift the entire

material within the maximum time limit of 90 days.

40

2. TERMS & CONDITIONS :

MARGIN MONEY

Margin money, ranging from 20% to 30%, shall be payable by the unit on the

value of the raw material. Category -wise bifurcation for margin money to be

recovered is as follows:-

i) Ferrous/non-ferrous others scare items of Raw Material :20%

ii) Others allied materials of the nature specified vide (i) above:25%

iii) Electronics/Electrical/Chemicals/Food/Packaging & Pharmaceutical

items :30% In case of imported material where price fluctuation is likely to occur,

the amount of earnest money shall be determined on the basis of the landed cost of

the

raw material. The range of margin money mentioned above can also be reviewed

by looking at various factors influencing the end use of the material its shelf life

and its acceptability in the market.

BILL DISCOUNTING SCHEME

1. NAME OF THE SCHEME

The Scheme shall be called as ‘BILL DISCOUNTING SCHEME’.

2. SCOPE OF THE SCHEME

The Scheme will cover purchase / discounting of bills arising out of genuine trade

transactions i.e. purchase of supplies made by MSMEs to reputed Public Limited

Companies / State and Central Govt. Departments / Undertakings.

41

3. SELLERS

Micro, Small & Medium Enterprises

4. BUYERS

i) State and Central Govt. Departments / Undertakings

ii) Public Limited Companies

5. GRANT OF PURCHASER-WISE LIMITS

Bills drawn by MSMEs for the supplies made by them and duly accepted by the

Purchaser will be financed against security of Bank Guarantee in favour of NSIC.

Purchaser unit(s) may approach NSIC for sanction of annual limits by furnishing

information as per the prescribed application form.

6. GRANT OF SELLER-WISE LIMITS

Seller unit(s) may provide bank guarantee in favour of NSIC for availing financial

assistance under the scheme. Bills drawn by them against their supplies made, duly

accepted by the purchaser will be financed. Annual limits can be fixed for such

units by obtaining information as per the prescribed application form.

7. PERIOD OF USANCE OF BILLS TO BE CONSIDERED FOR

DISCOUNTING

The maximum usance period of such bills should not exceed 90 days. The period

of unexpired usance of the bill shall not exceed 90 days while the tenure of the

bills shall not exceed 120 days.

8. DOCUMENTATION:

42

i) Agreement Bond

ii) Bank Guarantee

iii) Bill of Exchange

iv) Letter of Continuity

v) Post dated cheques

In respect of cases covered under para 5 above, the agreement shall have to be

executed both with the buyer unit as well as with the seller unit. The formats of the

above documents have been prescribed in the Legal document.

9. SECURITY:

Bank guarantees issued by banks approved by Head Office. The Bank Guarantee to

be obtained should be equivalent to the value of assistance (including discounting

charges & service charges for 90 days). Personal guarantee of proprietor, partners

of firms and Directors of the company shall also be obtained. Or Bill of Exchange

duly accepted by large corporate units of good financial standing with a turnover

exceeding Rs. 200 crores and net worth exceeding Rs. 50 crores and which are

profit making for the last three years. Such acceptance(s) over the bills of exchange

should be accompanied by buyer companies ‘Board Resolution’ specifying the

designated authority for accepting such bills. The Board Resolution should

mention the companies desire to avail bills discounting facilities from NSIC and

commitment to make payment of such bills on due dates.

Detail of Work done

43

During my internship period of 2 months from June to July, I surveyed the main

areas of Guwahati City where there is an immense growth for the organization .

These areas are as follows.

Amingaon Industrial Estate. Bamunimaidan industrial Estate. Fatashil Industrial Estate. GS Road. Fancy Bazar. Ganeshguri.

In these areas I have met the possible sources which usually generates business for the organization and as a marketing guy this was a perfect first teaching for me that how to deal with these business generating sources and a perfect corporate interaction with these peoples. These units are various industries dealing in steels, cloths, candle manufacturer, plastic industries, furniture ,etc . I got a good response from these sources about NSIC ,as goodwill of NSIC helped me a lot in handling different situations that surrounds me at the time of surveys. During my survey I found that at least 80 percent of the above mentioned sources is keen to provide work to NSIC because of its goodwill in the market in terms of good service, good employee behavior, least days are taken for sanction as compared to others, etc.

NSIC provided me a great opportunity to meet various guys from various industry in Guwahati by giving me a chance to visit their project sites as NSIC management trainee. These site already has a tie-up with NSIC and some more up - coming builder’s project also shows keen interest in dealing with us through their clients who are interested in registration of business units. These project name with the names of the concerned company’s are as follows-

The survey in the end of the internship period shows us the role of NSIC in promoting the small industries in guwahati region. How strong is the NSIC tactics in holding emerging market like Guwahati in terms of small industrial finance. Almost 90% of the raw material assistance scheme is done by NSIC in Guwahati. Strong policies provides greater customer satisfaction and a good

44

official environment make it easy for employees to conduct proceedings. I was able to make following leads during this 2 months period.

1. Maa industries. Manufacturers of carton, steel and furnitures.2. Foods and beverages. Manufaturers of food items.3. Vlenda David. Manufacturers of garments and fashionable ornaments.

The information about leads are as followings-

The final conclusion is that NSIC has a strong hold in Guwahati region regarding small industrial finance and is much ahead of other players of field. NSIC also facilitate its reginestere business units to participate in the trade fair and Expo with a very little money of just 5% of the installation cost

45

SWOT Analysis Of NSIC

STRENGTH –

Right schemes for various business units.

NSIC is a government undertaking company.

Has got tendering partners like NABARD, SIDBI, SBI, IOC, INDIAN

RAILWAYS

Superior customer service than competitors.

Great brand image.

High degree of customer satisfaction.

Good place to work.

Dedicated work force.

Efficient and effective services.

Knowledge of Indian market.

Support of various promoters.

WEAKNESS –

Some gaps in range for certain sectors.

Customers service staff needs training.

Process time is too long and lengthy.

Too much of paper formalities.

OPPORTUNITIES –

Growing Indian financial sector.

People are becoming more service oriented.

46

Operative in the global market.

THREATS –

From various competitors, foreign banks, Government Banks.

Future market trends.

Research Methodology

Objective Of The Survey

The general purpose of the survey was to find out the potential and efficiency of NSIC in GUWAHATI for promoting the small scale industries of INDIA and also determine what is the goodwill of NSIC in the emerging market like GUWAHATI. More specifically, the NSIC provides following types of imformation to the micro, small & medium scale industries of GUWAHATI.

To access the awareness of the small industries of GUWAHATI about the services provided by NSIC.

To analyze the overall satisfaction of the small scale industries from financial schemes.

Analysis of the various services provided by NSIC in GUWAHATI. To analyze the growth prospects of the number of the industries registered

under NSIC. To know what percentage people thinks NSIC is the frontier player in

promoting small industries. Which type of the financial schemes does the registered business units have?

47

To know existing customers will refer NSIC registered schemes to their relatives and frinds.

Research Design

This is a descriptive type of research, studies are longitudinal or cross sectional. In this descriptive type of research we will use cross sectional research design. Cross sectional research is a one short research study at a given point of time and consists of a sample of the population of interest. Its advantage is that it gives a good overall picture of the position at a given time. It can cover many variables of interest and is not affected by the movement of elements in the sample, other elements can be substituted for them it is also a flexible in nature and can take care of simple analysis as well as complex statistical methods.

In the research the following methods of collection data was followed :

Data source - Primary and Secondary

Research approaches – Observation and Survey.

Research Instruments – Questionnaire.

Contact Method – Personal

.

Project Scheduling

The total time available for the completion of the project was sixty days, thus keeping the time constraint in mind a project schedule was designed so that the set objective were met.

Defining the objective of the project.

48

Preparing the research plan and schedule.

Preparing the questionnaires.

Analysis of the findings.

Presentation of the findings.

Sample Methodology:

Sample Methodology used is random - Random sampling refer to taking a number of independent observations from the same probability distribution.

Sample Area:

GUWAHATI-

1. Amingaon industrial estate.2. Bamunimaidan industrial estate.3. Fatasil industrial estate.4. Fancy Bazar.5. G.S. road.6. Gneshguri.7. Chandmari.

Sample Unit :

The sample unit used is the survey of micro, small and medium scale industries of Guwahati.

Sample size :

The total of 100 people was asked to fill the questionnaires.

49

Questionnaire

Set – A – For current customer’s of NSIC

Date………………… questionnaire

Dear Sir/Madame,

We are conducting a brief survey on financial services and want to include your opinion. kindly answer the questions given below to help us complete our survey.

Q.1. Is your Business unit registered under NSIC financial schemes ?

(a) Yes (b) No

Q.2. Are you satisfied with the financial services that NSIC provide you?

(a) Yes (b) No

Q.3. Do you find the staff of NSIC friendly and co – operative in nature?

(a) Yes (b) No (c) Can’t say

Q.4. In future will you again would like to take services of NSIC?

(a) Yes (b) No (c) Can’t Say

Q.5. Will you refer your realtives to register under NSIC financial schemes?

(a) Yes (b) No

50

Set – B – For Non – NSIC Customer’s

Q.6. Have you ever heard of NISC?

(a) Yes (b) No

Q.7. Do you want your business unit to register under NSIC?

(a)Yes (b)No

Q.8. Are you familiar with NSIC financial schemes ?

(a) Yes (b) No

Q.9.From which bank you have taken loan for Business expansion?

……………………………………………………………………………….

Q.10. What was the rate of interest that the bank charged?

Bank Name……………………………….Interest Rate…………………………

Q.11. Suggestions ( if any ) for further improvement in the NSIC financial schemes.

…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

Name………………………………………………………………………………………………………………….

Address……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

51

Telephone Number………………………………………………………………………………………………………………

52

Data Analysis based upon the Data Obtained from the Questionnaires

Set – A

Current Customers of NSIC

1. The following pie chart, tells us the number of small industries which has registered their business unit under NSIC financial schemes.

55

45YesNo

Result : The Conclusion draw from the above analysis is that only about 55% of the number of persons who has registered their business unit under NSIC financial schemes.

53

2. The following pie chart, let us know about the existing customer of NSIC financial schemes who are satisfied with the services and are very much interested in taking services in future again.

65

35

SatisfiedNot Satisfied

Result :

The Conclusion draw from the above analysis is that the existing Customers of NSIC financial schemes are satisfied with the services and are interested in taking services in future again.

54

3. The following Pie chart depict the percentage of customers who find the staff of NSIC financial schemes friendly and cooperative.

79

18

3

YesNoCan't Say

Results :

The Conclusion drawn from the above analysis is that about only 79% of the customers were satisfied ,18% were not satisfied while ,3% refused to comment upon the nature of the staff of NSIC financial schemes.

55

4. The following Pie Chart depicts the number of small industries which would again like to take the services of NSIC financial schemes.

67

27

6

Yes NOCan't Say

Result :

The Conclusion drawn from the above analysis is that about 67% of the small industries are interested to take the services of NSIC financial schemes in Future, if it needs.

56

5. The following pie chart shows the customer’s who are interested in referring NSIC financial schemes if their business unit have a sister concern.

78

22

YesNo

Result :

The Conclusion drawn from the above analysis is that about 78% of the small industries are interested in referring NSIC financial schemes if their business unit have a sister concern.

57

Set – B

Non-NSIC Customers

6. The Following is the pie chart which tells that the number of owners of small industries in guwahati who have heard about NSIC’s financial schemes.

55

45

YesNo

Result :

The conclusion drawn from the above analysis is that only 55% of the owners of small industries in Guwahati who have heard about NSIC financial schemes.

58

7. The following pie chart shows us ,the number of persons who want their business unit to register under NSIC but don’t know the procedure to registered their business unit.

4555

YesNo

Result :

The Conclusion drawn from the analysis is that only 45% of the persons who wanted to registered their business unit under NSIC financial schemes.

59

8. The following chart shows us the owners of small industries in guwahati who are familiar with NSIC financial schemes.

64

36

YesNo

Result :

The Conclusion drawn from the above analysis that only about 64% of the owners of small industries are familiar with NSIC financial schemes.

60

9. The following chart shows the bank from which the small industries usually take loan for business expansion other than NSIC.

30%

60%

10%

Rate of interest15-16%16-18%<18%

Result :

The Conclusion drawn from the above analysis shows the bank from which the small industries usually take loan for business expansion other than NSIC.

61

10. The following chart shows the rate of interest that the bank usually charge while lending money to the small industries of north east.

30%

60%

10%

Banks15-16% 16-18% <18%

Result :

The Conclusion drawn from the above analysis shows the rate of interest that the bank usually charge while lending money to the small industries of north east.

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Key Findings from the Analysis

Result

The final conclusion after the analysis done on the data acquired during the survey is that -

Guwahati is a fast developing city with a great future for small industries registered under NSIC. All that is being done by NSIC is that it is creating an awareness about the prevailing schemes and also introducing new schemes prevailing in the market trend of Guwahati to make a city hub for small industries.

NSIC is giving the best effort to promote Entrepreneurship Development Programme (EDP) to make more awareness & create entrepreneurs and to motivate them to become the owner of micro, small and medium scale industries.

NSIC should keep a keen watch over the activities and schemes of other competitors in the city.

Steps is being taken to make the financial schemes customer friendly so that more and more development of small industries take place in Guwahati.

63

Suggestions-

This are the suggestions for NSIC which can create more platform for small scale industries in North- East.

NSIC must do more propaganda of their products especially to show benefit of their products as compared to rival firms. Organize events, support causes and advertise and make awareness for their financial schemes in the suburban area of Guwahati.

Must highlight their advantage over nationalized banks for industrial loans.

Although NSIC is the number one in Government purchase and raw material Assistance in Guwahati but still face tough competition from SBI. NSIC must develop strategies to seek more attention from the new potential micro, small & medium scale industries.

NSIC should try to promote and motivate in the rural areas of ASSAM like Nagaon, Tinsukia, Dibrugarh, Jorhat. NSIC should also try to promote and motivate other north eastern states.

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Bibliography

www. nsic.co.inwww.google.comwww.economictimes.comFinancial Manual of NSIC

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