NSIC Scheme

MEMORANDUM OF UNDERSTANDING

 

This Memorandum of Understanding (hereinafter called as M. O. U.) is made this 27th day of April 2012 between
 
The National Small Industries Corporation Ltd., a   Government of   India Enterprise having its registered office at NSIC Bhawan, Okhla Industrial Estate, New Delhi – 110020 (hereinafter referred to as N. S. I. C., which expression shall, unless repugnant to the meaning or context thereof mean and include its successors in interest and permitted assigns) of the First Part
                                               AND
The All India MSME Association  5/28 Navjivan Co-op Hsg.Soc.Ltd Dr. Bhadkamkar MargMumbai Central, Mumbai – 400 008 which is a registered AOP representing small Micro Small & Medium Enterprises (hereinafter referred to as ‘Association’, Which expression shall unless repugnant to the meaning or context therof mean and include its successors in interest and permitted assigns) of the second Part

 

NSIC and the “Association” are hereinafter collectively called as parties and each individually a “party” individual expression shall mean & include unless repugnant to the context or meaning thereof its successors and assigns of the respective parties.
Whereas the parties hereto propose to enter into a memorandum of understanding (M.O.U) for the purpose of utilizing the services of each other to promote the cause of micro, Small and Medium Enterprises (MSMEs) in particular and also to address the needs of the MSMEs in terms of  technology upgradation , marketing and credit through NSICs thrust schemes such as
1)   Single Point Registration Scheme
2)   Performance and credit Rating
3)   Infomediary services
4)   Facilitation of credit to MSMEs through banks
5)   Finance for procurement of raw material against bank guramtee
 
NSIC shall keep the association informed about the changes (addition/deletion/suspension) in its thrust schemes and the decision of NSIC in this regard shall be final
NOW THEREFORE THIS MEMORANDUM OF UNDERSTANDING WITNESS AS UNDER
1) The Association will provide a list of its office (s) and its office bearers to NSIC .
 
2) The Association shall nominate a nodal officer/ officers and names of such nodal officers will be provided to NSIC
 
3) The N.S.I.C on its part will provide a list of its Zonal/Branch offices/sub-offices and other controlling offices to the Association 
 
4) N.S.I.C. shall provide all details of its thrust schemes along with prescribed application forms at the office(s) of the Association
 
5)The Association shall publicize N.S.I.C ‘s thrust schemes in its magazines, newsletters and through other means of their  existing   media among its members and other MSMEs fraternity
The Association will also display all the schemes of the N.S.I.C at itsoffice(s).
 
6) NSIC and Association would also endeavour to give wide publicity about their activities. Towards this end each party may consider hosting the services provided by the other on each other website After obtaining consent in writing about the material to be published
 
7) NSIC and Association would also conduct workshops so as to keep the members of the association abreast of the services offered by NSIC as also the various areas of developments of MSME sector including government schemes launched for the benefit of the sector Details of such workshop will be worked out after mutual consent
 
8) NSIC and Association depending upon requirements may exchange information as also conduct and sponsor joint studies focused upon MSME sector for wider dissemination among the MSME sector units policy makers and other stake holders
 
9) The Association shall mobilize its MSME members units as well as other small scale units to avail the thrust schemes of NSIC
 
10)The application forms duly filled in the by the potential services seekers/MSMEs will be received at the office of the Association. After the completion of necessary documents the designated nodal officer of the Association shall forward the applications to the nearby N.S.I.C. office for further processing and approval
 
11) The prescribed fees towards respective services shall be paid in the form of Demand Draft in the name of N.S.I.C. Ltd by the MSMEs under no circumstances the Association will collect the fees in its own name
 
12) The N.S.I.C may accept the application forwarded by the Association and consider sanctioning the services on merit basis and as per the prevailing norms and policy of the N.S.I.C
 
13) The N.S.I.C shall have the right to refuse , accept or not to accept the proposal of particulars MSMEs at its sole discretion and the same may not be disclosed to the applicant unit. However at the request of the Association the N.S.I.C may inform the reasons for rejection
 
14) After approval of the application by N.S.I.C. all necessary action relating to dealing with the application units would be taken up by the N.S.I.C
 
15) In consideration of marketing of N.S.I.C s thrust schemes as referred above to its members/MSMEs , N.S.I.C. aggress to pay Rs 400 /- per application mobilized by the Association . The said fee shall be released to the Association within 30 days from the date of the approval of the application by the N.S.I.C
 
16) Any information passed on by the Association to NSIC about its members will not be shared with the third party/parties by NSIC without the written consent of the Association
 
17) It is agreed between the parties that they shall have the periodical review and record the progress achieved and suggest action if any to be taken to further the cause of this M.O.U.
 
18) The conditions set forth herein can be modified by mutual consent of the association and NSIC in writing
 
19) This M.O.U. can be terminated by either of the parties by giving 60 days prior notice to the other party. During this period the Association shall not collect any fresh applications from any MSME units to be forwarded to the N.S.I.C for seeking services
 
20) Dispute(s) or differences if any in relation to this M.O.U. shall be decided and resolved by mutual discussions between the chief Executives of the parties or their authorized representative and as far as possible litigation would not be resorted to.
IN WITNESS WHEROF, each of the parties hereto has caused this M. O. U. to be executed by its duly authorized officers as of the day and year first above written.

 

 

 IN WITNESS WHEROF, each of the parties hereto has caused this M. O. U. to be executed by its duly authorized officers as of the day and year first above written.


THE NATIONAL SMALL INDUSTRIES CORPORATION LTD.
(A Government of India Enterprises)

1. FINANCIAL SUPPORT PROGRAMMES

1. Raw Material Assistance:- If SSIUnit has a unit of Bank Guarantee ,here is a Scheme that converts its non- fund based limits into liquidity for purchasing raw material through cash and earn cash discount that is often more than the cost of the finance under this scheme. 

Features
  • Converts non fund based limit into liquid funds.
  • Increased turnover and profitability by infusion of fresh liquidity at no real cost.
  • Very simple application format and documentation. Sanction of limit on fast track basis.
  • Security: Assistance against Bank Guarantee only. 

2. Bill Discounting Scheme:- The Government department Large, and Medium Scale units generally buy products, sub-assemblies etc. from SSI Sector on deferred payment basis, which result in shortage of funds for the SSI units. Accordingly, NSIC under the scheme finances sale bills of SSIs. 

Features
  • Eased Liquidity position helps in maintaining continuity.
  • Payment is directly released to SSI unit.
  • Finance is available for 90 days. 

3. Facilitation of Credit Support Through Banks:- Any kind of finance assistance i.e. Term Loan, Working Capital Loan Bill Discounting facility and Export Finance can be arranged through United Bank of India, UCO Bank, Oriental Bank of Commerce, Central Bank of India, Bank of Maharashtra, Yes Bank, UTI Bank at the most competitive interest rates. The term and condition of finance shall be of individual bank.

 
 

2. RAW MATERIAL ASSISTANCE OF NSIC 

Raw Material Assistance Scheme aims at helping Small Scale Industries/Enterprises by way of financing the purchase of Raw Material (both indigenous & imported). This gives an opportunity to SSI to focus better on manufacturing quality products.

Benefits of the Scheme

Financial Assistance for procurement of Raw Material upto 90 days.

SSI helped to avail Economics of Purchases like bulk purchase; cash discount etc

NSIC takes care of all procedures,documentation&l issue of Letter of credit in case of imports

 

SCHEMES OF NSIC FOR THE DEVELOPMENT OF SMALL ENTERPRISES.

 

3. MARKETING SUPPORT

Single Point Registration for Government Purchase Programme

Get registered with NSIC to avail the following benefits:
 

  • Issue of tender sets Free of Cost
  • Exemption from payment of earnest money
  • Waiver of security deposit upto the monetary limit for which the unit is registered.
 
Consortia and Tender Marketing
 
  • NSIC facilitates small enterprises to particilate in tenders and procure orders from Government departments,public sector under taking and other bulk buyers.
  • Improve your business opportunities through participating in consortia and tender marketing scheme. 
 
Distribution of Scarce Raw Materials
 
  • Bulk Procurement of basic Raw Materials and distribution at competitive rates to small units.
  • Timely availability in small quantities to reduce blockage of funds by small enterprises.
 
Buyer Seller Meets
 
  • Bulk Buyers such as railways ,Defense, Communication Department are invited to participate in Buyer Seller Meets. 
  • Participation small enterprises enhance their opportunities by becoming vendors to bulk buyers.
 
Export and International Co-operation
 
  • Participate in Business/Technology missions with various countries.
  • Supply of small industry products and projects on turn key basis. 


4.
CREDIT SUPPORT

Credit Facilitation

To meet our Credit needs contact NSIC for access to various commercial banks.

The small enterprises can choose /change its bank through NSIC’s strategic alliance with commercial banks for availability of any amount. 

  • Credit available at competitive Interest rates.
  • Financial for procurement of raw Material and marketing Activity(Short Terms)

 

5. Bill Financing

Avail facility for discounting of bills for supplies made to reputed public limited

companies, central& state government department and undertakings

 
Performance and Credit Rating Scheme for Small Industries
 
  • Avail facility for discounting of bills for supplies made to reputed publiclimited companies, central & state government department and undertakings You can choose any rating agency out of CARE, CRISIL, DUN & BRADSTREET, FITCH, ICRA, ORICRA,and SMERA
  • Good rating to enhance the acceptability of the small enterprises with Bank, Fis Customers and Buyers.
  • Facilitate Prompter credit decision from Bank on Proposals.
  • Subsidy up to 75% of the rating fee subject to the maximum of rs 40,000 


6. TECHNOLOGY  SUPPORT

  1. Technology and common facility services
  2. Leverage on NSIC technology services n the area of :
  3. Classrooms and Practical training For skills up gradation.
  4. Material facing laboratories through accredited laboratories.
  5. Product design including CAD.
  6. Common facility support in machining, EDM,CNC,DNC etc.
  7. Energy and environment services at selected centres.
  8. Advising on application of new technology.

 

7. MENTORING AND ADVISORY SERVICES

  • Address your critical operational problems through senior and professional mentor/Advisor.
  • Mentors can be engaged for a period to mentors/advisor can be engaged for a period for a 3 month.
  • 50% of the honorarium payments to mentors/advisors is subsidized through grants.

 

8. INFORMEDIARY SERVICES

  1. Become a member and avail small business related information through www.nsic.co.in
  2. Market intelligence
  3. Tender and other business leads.
  4. E&E Services.
  5. Spare capability bulletin board.
  6. Linkages with relevant institution. 

 

9. SCIENCE AND TECHNOLOGY PARK/TECHNOLOGY BUSINESS INCUBATORS

  1. Incubate your innovative ideas under the auspicious of a profession and experienced institution.
  2. Infrastruture and hand holding support for the start up enterprises.
  3. General Engineering incubator at Rajkot
  4. IT incubator at Okhla New Delhi. 

 

10. SUPPORT SERVICES

Laghu  Udhyog  Mart

  1. Exhibit your products in the Laghu Udhog Mart at NSIC Technival service centre Okhla.
  2. 1,00,000sq ft large column free areafor exhibition purpose.
  3. Un-interuppted power supply.
  4. Similar facility at NSIC Technical Services centre at yderabad,Howrah,Chennai,and Rajkot.
  5. NSIC’s Exibition infrastructure provides sample sates at reasonable rates for holding exhibition and sale.
     

 

11. SOFTWARE TECHNOLOGY PARKS

 
Start your business operation by utilizing the infrastructure facilities
at NSIC Software Technology parks (STPs)at New Delhi and Chennai.
 

 

12. EXHIBITION AND TECHNOLOGY FAIRS

  1. Be a part of the scheme and capture market opportunities:
  2.  Small enterprises are exposed to international practice  through participate  in international exhibition.
  3. Participation in exhibition enhances business prowess of small enterprises. 

 

CREDIT RATING

 
BENEFITS OF CREDIT RATING
 

 Rating serves as a useful tool for different constituents of the capital market. For different classes of persons, different benefits accrue from the use of rated instruments.

1) Investors:
Rating safeguards against bankruptcy through recognition of risk. It gives an idea of the risk involved in the investment. It gives a clue to the credibility of the issuer company. Rating symbols give information on the quality of instrument in a  simpler way that can be understood by lay investor and help him in taking decision on investment without the help from broker. Both individuals and institutions can draw up their credit risk policies and assess the adequacy or otherwise of the risk premium offered by the market on the basis of credit ratings.

2) Issuers of Debt Instruments:

A company whose instruments are highly rated has the Opportunity to have a wider access to capital, at lower cost of borrowing. Rating also facilitates the best pricing and timing of issues and provides financing flexibility. Companies with rated instruments can use the rating as a marketing tool to create a better image in dealing with its customers, lenders and

creditors. Ratings encourage the companies to come out with more disclosures about their accounting systems, financial reporting and management pattern. It also makes it possible for some category of investors who require mandated rating from reputed rating agencies to make investments. 

3. Financial Intermediaries:

Financial intermediaries like banks, merchant bankers, and investment advisers find rating as a very useful input in the decisions relating to lending and investments. For instance, kith high credit rating, the brokers can convince their clients to select a particular investment proposal more easily thereby saving on time, cost and manpower ill convincing their clients.

4. Business Counter-parties :

The credit rating helps business counter-parties in establishing business relationships particularly for opening letters of credit, awarding contracts, entering into collaboration agreements, etc

5. Regulators:

Regulators can, with the help of credit ratings, determine eligibility criteria and entry barriers for new securities, monitor financial soundness of organizations and promote efficiency in debt securities market. This increases transparency of the financial system leading to a  healthy development of the market.   

NSIC MOU AGREEMENTS

WITH BANKS

(Last Updated  : 23/10/2012, Content:  DM (BD))

S.No.

Name of the Bank

MOU Agreement

For Downloading loan application forms, visit the following website.

1

Axis Bank

 

2.

Bank of Maharashtra

Download 1, Download 2, Download 3, Download 4

 

3.

Central Bank of India

Download 1, Download 2, Download 3, Download 4, Download 5, Renewal of MOU

 

4.

China Trust Bank

 

5.

HSBC

Download 1, Download 2, Download 3,Renewal of MOU

 

6.

Oriental Bank of  Commerce

 

7.

State Bank of  Hyderabad

Renewal of MOU

8.

UCO Bank

Download 1, Download 2, Download 3 , Download 4

9.

Bank of India

Download 1, Download 2, Download 3, Renewal of MOU

 

10.

United Bank of India

Download 1, Download 2

 

11.

Bank of Baroda

Bank of Baroda  Branch address

 

12.

Yes Bank

Download 1, Download 2

 

13.

IndusInd Bank Ltd.

 

14.

Vijaya Bank.

Vijaya Bank Branch address

 

15.

Federal Bank.

Federal Bank Branch address

 

16.

Corporation Bank

Corporation  Bank Branch address

www.corpbank.com