Govt to infuse Rs 300 cr in NSIC to help SMEs

NEW DELHI, INDIA: The government is might infuse an additional capital of Rs 300 crore in the National Small Industries Corporation (NSIC), according to a media report. The new decision will enable the public sector service firm to increase its bank borrowing capacity to Rs 2,000 crore from the current Rs 1,000 crore, says the report.

A proposal for the induction of fresh equity is going to come up for approval of the Cabinet Committee of Economic Affairs (CCEA) soon, continues the report.

“At present, we can have bank borrowing of up to Rs 1,000 crore. With additional equity, we will be able to leverage more,” NSIC CMD is quoted to have said.

The NSIC will 'do a capacity assessment of the micro and small enterprises (MSEs) through inspection agencies to know whether they can deliver the goods and maintain quality'.

A consortium of MSEs would also be formed so that a larger combined capacity is created to meet big requirements of the buying organisations.

“Through this, we will enhance capacity for the MSEs,” Kumar said. One of the recommendations of the PM's Task Force was to 'strengthen NSIC's equity base for enhanced market support to MSMEs'.