Enabler for MSMEs eyes 21% growth

National Small Industries’ Corp. has sought more equity funding from Centre

October 28, 2017 07:22 pm | Updated November 11, 2017 12:20 pm IST - COIMBATORE

A worker operates a lathe machine as he makes a steel cutter at a manufacturing unit in Noida, on the outskirts of New Delhi in this November 3, 2014 file photo. Business sentiment among Asia's top companies rebounded in the fourth quarter to the second-highest level in almost three years, a Thomson Reuters/INSEAD survey showed, helped by a stronger U.S. economy and a plunge in oil prices.  REUTERS/Anindito Mukherjee/Files (INDIA - Tags: BUSINESS)

A worker operates a lathe machine as he makes a steel cutter at a manufacturing unit in Noida, on the outskirts of New Delhi in this November 3, 2014 file photo. Business sentiment among Asia's top companies rebounded in the fourth quarter to the second-highest level in almost three years, a Thomson Reuters/INSEAD survey showed, helped by a stronger U.S. economy and a plunge in oil prices. REUTERS/Anindito Mukherjee/Files (INDIA - Tags: BUSINESS)

The National Small Industries Corporation (NSIC), a government enterprise that facilitates information, credit, technology and marketing for micro, small and medium enterprises (MSMEs), is looking at business to the tune of ₹24,000 crore this year.

“Our business turnover in 2007 was about ₹2,300 crore. From 2007, we moved towards self-dependence and last year, the business turnover was about ₹20,600 crore. This year, there are challenges faced by SMEs for various reasons. We are looking at business of ₹24,000 crore to ₹25,000 crore,” said Ravindra Nath, chairman-cum-managing director of NSIC.

The profit NSIC earned last year was ₹165 crore. In 2015-2016, the company had business of ₹ 21,242 crore.

Some of the sources of revenue for NSIC, which caters to about 1.25 lakh MSMEs across the country through different schemes, are interest earned for credit offered to the units, membership charges, training centres, and raw material distribution.

“Government equity in the enterprise now is ₹532 crore. We are in discussion with the government for more equity, especially needed for credit services. We are yet to ascertain how much we need,” he said.

Finance facilitation

On the services offered by NSIC, he said that about 10,000 units seen benefit so far from the online finance facilitation centre started last year. The organisation is talking to State Governments to set up technical service centres in each State. “We have seven technical service centres where we train people according to industry needs. We need infrastructure to expand the service.

“Through the tie-ups, the State government will provide the infrastructure and NSIC will invest in plant and machinery,” he said. It has signed an MoU with the Haryana government to set up a centre at Faridabad and the Punjab government has given its consent for a centre at Rajpura.

Following the visit of officials from South Korea, Malaysia, and Taiwan to the NSIC Advanced Training Centre, it is working out details to showcase MSME technologies in these countries at the facilities provided.

The host country will also display its technologies. This will enable technology transfers and joint ventures, Mr. Nath said.

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