NSIC - National Small Industries Corporation

The National Small Industries Corporation (NSIC) is an ISO 9001-certified Government of India enterprise, set up in 1955 and operating under the Ministry of Micro, Small and Medium Enterprises. It promotes and supports micro and small enterprises (MSEs) through marketing, finance, technology and other services, most notably by helping them access government procurement.

Core services

• Single Point Registration Scheme (SPRS): enlists MSEs so they can participate in government tenders on preferential terms.
• Raw material assistance: financing the purchase of raw materials against a bank guarantee.
• Credit support and marketing assistance: facilitation of bank finance, tender marketing and consortia, and B2B portals.

Legal basis

The procurement benefits flow from the Public Procurement Policy for Micro and Small Enterprises Order, 2012, notified under Section 11 of the MSMED Act, 2006. Every central ministry, department and PSU must aim to source at least 25% of its annual purchases from MSEs, with 4% earmarked for SC/ST-owned units and 3% for women-owned enterprises.

Benefits of SPRS registration

• Free issue of tender documents and exemption from Earnest Money Deposit (EMD).
• Price preference: an MSE quoting within L1+15% may match the L1 price and supply up to 25% of the requirement where L1 is a non-MSE.
• Access to 358 items reserved for exclusive purchase from the MSE sector.

Who can register

Any micro or small enterprise holding a valid Udyam Registration can apply for SPRS. The GP (Government Purchase) registration is typically valid for two years and renewed thereafter, with the unit's monetary competency assessed during registration.