MSME Hub for SC/ST

In pursuance of Budget Announcement 2016-17, the Ministry of Micro, Small and Medium Enterprises (MSME) has launched the National Scheduled Caste and Scheduled Tribe (SC/ST) Hub. This scheme is being implemented through the National Small Industries Corporation Limited (NSIC), a public sector undertaking under the Ministry of MSME. The SC/ST Hub would provide professional support to SC/ST entrepreneurs to fulfill the obligations under the Public Procurement Policy for Micro and Small Enterprises, adopt applicable business practices and leverage the Stand up India initiative.

The functions of the Hub include collection, collation and dissemination of information regarding SC/ST enterprises and entrepreneurs, capacity building among existing and prospective SC/ST entrepreneurs through skill training and Entrepreneurs Development Programmes (EDPs), vendor development programmes, promoting participation of SC/ST entrepreneurs in exhibitions trade fairs, facilitating SC/ST entrepreneurs’ participating in public procurement and monitoring the progress, etc.

The total estimated budget for the SC/ST Hub Scheme for the period 2016-20 is Rs 490 crore. Further, the SC/ST Hub Scheme for special subsidy for SC/ST entrepreneurs under Single Point Registration Scheme, Marketing Assistance Scheme and Performance and Credit Rating Scheme has been approved. Under the Special Marketing Scheme (SMAS) to provide marketing support, SC/ST units will get double the rate of country-specified daily allowance as per MEA guidelines including expenses for accommodation and transport etc.

The transport cost for participation in vendor development programmes will be reimbursed to SC/ST units. Renewal subsidy will be given only to the SC/ST units having a rating upto five and additional subsidy for SC/ST units to be 15 per cent. The public procurement mandated four percent annual procurement by Central Ministries/ Departments and Public Sector Undertakings from SC/ST enterprises. At present, the procurement is less than one percent owing to low participation of the community.

The number of SC/ST-owned enterprises has increased in the past but the number needs to be scaled up to enable the socio-economic empowerment of SC/ST communities. Moreover, the MSME Ministry directed DICCI, industry associations, banks, and relevant ministries to contribute suggestions for the betterment of the hub. The hub will hand-hold entrepreneurs with market access/linkage, monitoring, capacity building, financial support schemes, and industry best practices. Supported by a special cell, the hub will be operated from the National Small Industries Corporation (NSIC) headquarters, New Delhi, according to www.yourstory.com.