The Ministry of MSME initiative, National SC/ST Hub primarily focuses on assisting the Schedule caste and tribe in India. Majorly by providing them the necessary professional guidance through hubs. The scheme complies with the rules of the central government public procurement policy for Micro and Small Enterprises. Accordingly, it encourages to adopt suitable business practices and contribute to the stand-up India initiatives.
Objectives of the National SC/ST Hub
- To encourage the practice of enterprise culture amidst the schedule caste and tribe population.
- Further, the scheme will enable the Central Public Sector Enterprises (CPSEs) to attain the objective.
- Moreover, the Hubs will aid the government to start the entrepreneurship trend among the SC/ST community, which is currently low.
- Subsequently, gather data about the existing and the upcoming SC/ST enterprises.
Purpose of the Scheme
According to the Public Procurement Policy for Micro and Small Enterprises, 20% procurement share of goods and services by Central Ministries and CPSEs will be from MSEs. Accordingly, this means that 4% of the total procurement from MSE would be under SC/ST. However, currently, the trend has gone down to 0.5% for SC/ST. Thereby, to rectify the same the national SC/ST hubs initiative promotes their participation in procurement. Further, the government through national SC/ST hubs encourages entrepreneurship.
Activities under the scheme
- The hub in association with CPSEs, industry associations, and SC/ST enterprises helps in procurement.
- Additionally, assist in networking, mentoring, soft interventions, and hand-holding that aids them to the source to government and CPSE.
Agencies that Form the Structure of Scheme
NSIC creates a cell with 20 members that forms the core of the National SC/ST Hub. Further, NSIC provides support with technical and managerial advice. Meanwhile, the NSIC works with industries, incubators, mentors, MSME-Dls, District Industry Centres (DICs) and CPSE to provide additional assistance. Moreover, professionals, officials, and consultants are hired to support the same. Additionally, a high-powered committee and advisory committee will be under this scheme to monitor and act as representatives.
Role and Responsibilities of the National SC/ST Hubs
- Initially, collecting data and analyzing the situation of each SC/ST enterprise.
- Further, enhancing the capacity of the existing units and search for prospective units.
- Additionally, Vendor development programs with CPSEs, NSIC, MSME-DIs, and DICCI.
- Meanwhile, encourage SC/ST participation in exhibitions, trade, fairs, etc.
- Also, working with Niti Aayog scheme, state, and central government to achieve the objectives of the scheme.
- Furthermore, promote their involvement in public procurement, e-platform, credit linkage, etc.
The activities are undertaken by the national SC/ST hub
- Special Credit Linked Capital Subsidy Scheme (CLCSS)
- Marketing Assistance Scheme
- National Manufacturing Competitiveness Programme
- A special drive to raise funds
- Annual procurement above Rs.500 crore
- Set up several incubators
- Intensive mentoring and capacity building support
- Single Point Registration Scheme
- Tribal Cooperative Marketing Development Federation of India Limited (TRIFED) (aiding in aggregation)
Despite these schemes pre-existing, since the implementation of the national SC/ST hub, the extra focus will be on SC/ST population.
High Powered Monitoring Committee
The committee that monitors the scheme as well as reviews and guides the same includes the following members:
- Secretary of MSME
- CMD, NSIC
- Secretary (Ministry of Tribal Affairs)
- CEO (NITI Aayog or representative)
- Secretary (Department of Public Enterprises or a representative)
- Secretary (Department of Financial Services or a representative)
- Two representatives of All India Industry Bodies
- Secretary (Department of Social Justice & Empowerment)
- a representative of Dalit Indian Chamber of Commerce and Industry (DICCI)
- Three representatives (MSME associations)
- CMD, SIDBI or representative
- Two representatives of State Governments.
- Four prominent SC/ST Entrepreneurs nominated by Ministry of MSME
- CEO (National Skill Development Corporation (NSDC))
- CMD (National Scheduled Caste Finance and Development Corporation (NSFDC))
- CMD (National Scheduled Tribe Finance and Development Corporation (NSTFDC))
- ED, RBI dealing with MSME credit.
The Advisory Committee
This works under the High-Powered Monitoring Committee. Further, this would consist of the chairman of the High-Powered Monitoring Committee and a representative acts as the chairman.
Empowered Project Approval Committee
NSIC will be the implementing agency through which MSME will implement the National SC/ST scheme. However, the Empowered Project Approval Committeewill analyze the proposals and approve it. Further, it would involve AS&FA, AS&DC, JS(SME), one representative from NITII Aayog, Department of Expenditure, Department of Social Justice and Empowerment and Ministry of Tribal Affairs.
Submit the proposals to:
Office of Chairman-cum-Managing Director,
NSIC, Okhla Industrial Area,
Office of Joint Secretary,
Ministry of MSME,
Udyog Bhawan, New Delhi.