1. 1 Marketing Efforts of NSIC NSIC acts as a facilitator for Marketing Support to MSEs. A.Marketing Efforts of NSIC 1.Single Point Registration Scheme. 2.Consortia and Tender Marketing Scheme. 3.Exhibitions and Buyers Sellers Meet. 4.Assistance to MSEs for Export 5.NSICs Central Marketing Office in Delhi – a Nodal Centre. 6.Raw Material Distribution.

2. 2 1. Single Point Registration Scheme of NSIC under Government Stores purchase programme Introduced in May 1976 DGS&D appointed NSIC as agency for registration under this Scheme. Introduced in May 1976 DGS&D appointed NSIC as agency for registration under this Scheme. Avoid multiplicity of registrations with various Government. Departments. Avoid multiplicity of registrations with various Government. Departments. At par with those registered with DGS&D and no separate registration with DGS&D. At par with those registered with DGS&D and no separate registration with DGS&D. Capacity assessment of the units in terms of its quality and standards, volume of production and financial capability Capacity assessment of the units in terms of its quality and standards, volume of production and financial capability

3. 3 Benefits (Entitled) oIssue of tenders free of cost. oExemption from payment of Earnest Money Deposit. oWaiver of Security Deposit up to the Monetary Limit for which the unit is registered with NSIC. oPrice preference upto 15% over the quotations of the large scale industries. oValue of supplies made by 2005-06 2006-07 Regd. MSEs to DGS&D 933 Cr. 1479 Cr.

4. 4 Issues requiring attention a)Some PSUs and Govt. depatts. not extending the benefits to MSEs. b)Provisions are not mandatory. c)In the draft policy for Procurement Preference under the MSMED Act 2006 the issue has been considered. Early finalization and notification of the rules will be helpful.

5. 5 2. Consortia and Tender Marketing NSIC submits bids on behalf of MSEs against the large volume tenders of Government Deptts/PSUs. NSIC submits bids on behalf of MSEs against the large volume tenders of Government Deptts/PSUs. Orders are farmed out to MSEs for execution. Orders are farmed out to MSEs for execution. Raw Material assistance is granted to such units Raw Material assistance is granted to such units Bills are realised by NSIC for payment to supplier MSEs. Bills are realised by NSIC for payment to supplier MSEs. Part payment upto 70% is made to supplier MSEs before realisation of bills. Part payment upto 70% is made to supplier MSEs before realisation of bills.

6. 6 Issue requiring attention Disqualification of NSIC Bids Some of the Deptts / PSUs stipulate in their tenders that only manufacturers should submit the tenders and NSIC is not treated as manufacturer by the buyers. Some of the Deptts / PSUs stipulate in their tenders that only manufacturers should submit the tenders and NSIC is not treated as manufacturer by the buyers. Minimum turnover criteria sometimes debars MSEs from participation in Tenders. Minimum turnover criteria sometimes debars MSEs from participation in Tenders. These issues can be taken care of in the policy of procurement preference. These issues can be taken care of in the policy of procurement preference.

7. 7 3. Exhibitions & Buyer Seller Meets To showcase the competencies of Indian Micro and Small Enterprises. To showcase the competencies of Indian Micro and Small Enterprises. Capture market opportunities. Capture market opportunities. Buyer Seller Meets organised between Govt. Deptts./ PSUs and MSEs. To enrich MSEs knowledge regarding terms and conditions of purchase, quality standards etc. of the buyer. Vendor development of Micro and Small Enterprises for Govt. Deptts. / PSUs.

8. 8 4. Assistance to MSEs for Export NSIC arranges participation of MSEs in International Exhibitions. NSIC arranges participation of MSEs in International Exhibitions. Export Marketing opportunities in order to identify, explore, enhance export business. Export Marketing opportunities in order to identify, explore, enhance export business. Exposure to international practices to enhance their business potential. Exposure to international practices to enhance their business potential. Assistance provided to MSEs as per Govt. Guidelines Assistance provided to MSEs as per Govt. Guidelines i)Upto 60% subsidy on stall rental. ii)Upto 75% reimbursement in fare upto Rs.40,000/-. iii)Freight reimbursement upto Rs.15,000/- (Total Assistance not to exceed Rs.1.25 lac)

9. 9 2005-062006-07 Exhibitions & Buyer Seller Meets Organised 2335 Exhibitions Participated (National) 3642 Exhibitions Participated (International) 49 Number of Exhibitions / Buyer Seller Meets

10. 10 5. Central Marketing Office A Central Marketing Office (CMO) established in the office of DGS&D in Delhi. CMO to help the MSEs in their marketing efforts by way of providing information pertaining to government purchase / tenders / rate contracts etc. Creation and maintenance of Database of Buyers at the Centre and State Level, the items being purchased along with the price and the suppliers (MSEs). CMO works in liaison with DGS&D and shares the information pertaining to all purchases by DGS&D. Around 4500 nos. of tenders apprx. value of Rs.1451 Cr sent to MSEs since 1 st April 2007

11. 11 6. Raw Material Distribution NSIC distributes basic raw material like Aluminum, Copper and Iron & Steel, at competitive rates to MSEs. NSIC distributes basic raw material like Aluminum, Copper and Iron & Steel, at competitive rates to MSEs. Tie ups with bulk Raw Material Manufactures. Tie ups with bulk Raw Material Manufactures. Iron & Steel is distributed after its allocation from Ministry of Steel under Joint Plant Committee. Iron & Steel is distributed after its allocation from Ministry of Steel under Joint Plant Committee. The distribution of Iron & Steel is only in the states where the State Corporations are not distributing the material namely, Gujarat, Andhra Pradesh, Jharkhand, Uttranchal, Pondicherry, Delhi, Haryana & Dadar Nagar Havelli. The distribution of Iron & Steel is only in the states where the State Corporations are not distributing the material namely, Gujarat, Andhra Pradesh, Jharkhand, Uttranchal, Pondicherry, Delhi, Haryana & Dadar Nagar Havelli. During the last three years distribution of Raw Material: 2005-062006-072007-08 (upto Nov.07) Total Raw Material Distribution 146620261441 Value in Crore

12. 12 Raw Material Distribution Issues requiring attention a)NSIC should be nominated by Ministry of Steel as the second agency for distribution of iron & steel in states where the State Corporations are distributing the material. Many associations of MSEs have approached NSIC to take up the distribution of iron & steel for providing better service. b)Many MSEs in plastic industries require raw materials like HDPE, LLDPE and some MSEs need Bitumen as the raw material but they are facing difficulties in its procurement. NSIC has been pursuing with Gas Authority of India Ltd. for HDPE and LDPE and Indian Oil Corporation for Bitumen but the producers have not shown any inclination for appointing NSIC as an agency for distribution of their material.

13. 13 B. Suggested Future Initiative for setting up Marketing Hubs for MSEs Setting up of Rural and Urban Marketing Hubs exclusively for MSEs Products. Setting up of Rural and Urban Marketing Hubs exclusively for MSEs Products. These Hubs to provide infrastructure for exhibitions and sale for MSEs products. These Hubs to provide infrastructure for exhibitions and sale for MSEs products. These Marketing Hubs can be established in Public Private Partnership (PPP) mode with contribution from Govt. and Private Parties / Associations of MSEs. These Marketing Hubs can be established in Public Private Partnership (PPP) mode with contribution from Govt. and Private Parties / Associations of MSEs. NSIC can be a Nodal Agency for setting up of these Hubs which can be operated by the Private Partners / Associations. NSIC can be a Nodal Agency for setting up of these Hubs which can be operated by the Private Partners / Associations.