Non-availability of quality raw materials on a timely basis
in an adequate quantity is one of the main problems faced by micro, small
and medium enterprises. There is acute shortage of even the basic raw
materials required by small scale units. These units are under a handicap
in obtaining raw materials of requisite quality at reasonable prices.
They do not get the benefits of bulk buying. For instance, the handloom
industry is facing shortage of yarn. Small scale industries also face
shortage of power due to which they are unable to make full utilization
of plant capacity. Majority of them cannot afford to install their own
power generating plants to ensure uninterrupted operations.
National
Small Industries Corporation (NSIC) and State Small Scale Industries
Development Corporations are involved in making efforts for providing
some raw materials to MSME sector.
NSIC aims to help small scale units by financing purchase
of raw material (both indigenous and imported), thus allowing them to
focus on manufacturing quality products. It facilitates availability of
scarce raw material either through the domestic market or by importing.
State Directorate of Industries distributes scarce raw
materials to small units. They have set up depots for distribution of
raw materials to small scale industries (SSIs). The Central Government
has introduced a buffer stock scheme to ensure availability of scarce
raw materials to this sector.
Raw Material Assistance Scheme of NSIC aims at helping small scale
industries by way of financing the purchase of raw material (both indigenous
& imported). This gives an opportunity to SSIs to focus better on
manufacturing quality products. Benefits of the Scheme
- Financial Assistance for procurement of Raw Material
upto 90 days.
- SSI helped to avail Economics of Purchases like bulk
purchase; cash discount etc.
- NSIC takes care of all the procedures, documentation
& issue of Letter of credit in case of imports.
The entrepreneurs are required to apply for raw material
assistance only on the prescribed application
forms. The application may be filled and submitted to the concerned
Regional & Branch Offices.
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