Revised Guidelines of National SC & ST Hub scheme (NSSH)

Ministry of Micro, Small and Medium Enterprises vide a Notification dated 15

th November 2021 has issued the Revised Guidelines of National Scheduled Caste and Scheduled Tribe Hub scheme, (NSSH). The key objective of the NSSH scheme is to enhance the SC/ST entrepreneurs and to promote entrepreneurship culture amongst the SC / ST population. The Scheme authorizes the SC/ST entrepreneurs to participate in the public procurement process and fulfill the mandated target of 4% procurement from SC/ST enterprises under the Public Procurement Policy. The present article briefs the Revised Guidelines of the National SC & ST Hub scheme, (NSSH). For more details on National Scheduled Caste and Scheduled Tribe Hub, click here

Synopsis of MSME Notification

Following the Budget Speech 2016-17, National Scheduled Caste and Scheduled Tribe Hub (NSSH) scheme were formally launched by the Hon'ble Prime Minister in October 2016. Ministry of

Micro, Small, and Medium Enterprises through its notification Dated 15 November 2021 announced that the Standing Finance Committee (SFC) in its meeting held on 11.10.2021 has approved the proposal for the continuation of the National Scheduled Caste and Scheduled Tribe Hub (NSSH) during 15thFinancial Cycle i.e. from 2021-22 to 2025- 26

The scheme is applicable from the date of sanction till 31.03.2026.
The total plan outlay of NSSH for the period from FY 2021-22 to FY 2025-26 would be Rs. 438 crore

Know more about Venture Capital Funds for Scheduled Caste

Definition of SC-ST MSEs

Ministry of MSME vides its memorandum dated 20th February 2014 clarifies the definition of SC/ST Enterprises as under:

In the case of proprietary MSE, the proprietor shall be SC/ST
In case of partnership MSE, the SC/ST partners shall be held at least 51% shares in unit c)
In the case of private limited companies, at least 51% shares shall be held by SC/ST promoters

Functions of National SC & ST Hub

The function of the National Scheduled Caste and Scheduled Tribe Hub is listed as follows:

One of the key functions of the National SC & ST Hub is to encourage SC/ST owned MSE to achieve their share of at least 4% of total procurement being made by Central/State Governments, CPSEs, and other government agencies.
To prepare a strategy to sensitize, encourage and enable the SC/ST owned units to participate in Public Procurement Process
To collect, collate, and disseminate information of SC/ST enterprises and entrepreneurs
To Facilitate SC/ST Entrepreneurs to be part of vendor development programs and mentoring support by specific CPSE matching the products/services of such entrepreneurs
Organizing skill development programs for Capacity building of existing and prospective SC/ST entrepreneurs
To provide handholding and mentoring support to the SC/ST Entrepreneurs and to facilitate credit linkages for SC/ST entrepreneurs
Sharing of SC/ST MSEs data with CPSEs to enhance the procurement from SC/ST entrepreneurs
National SC & ST Hub will undertake outreach activities for the promotion of the scheme among the SC/ST population

Components under NSSH under NSSH

Various components/interventions have been introduced under NSSH to cater to the needs of SC/ST MSEs to provide a conducive ecosystem. The focus areas of the scheme are finance, technology, market linkages, capacity building

Special Credit Linked Capital Subsidy for technology enablement
Capacity building of existing & aspiring SC/ST
Support for enhancing competitiveness through various reimbursement sub-schemes/interventions
Special Marketing Assistance Scheme (SMAS) for SC/ST entrepreneurs

Note: The components under the National SC/ST Hub (NSSH) scheme shall remain co-terminus with the NSSH scheme.

NSSH Hub Structure

The Hub operates out of the National Small Industries Corporation (NSIC) headquartered in Delhi, supported by a special cell created for this purpose. The following three communities aid in the functioning of the Hub:

High Powered Monitoring Committee (HPMC)-

This committee would be chaired by the Minister of MSME and supported by Minister/s of State (MSME s. It is primarily vested with the responsibility of monitoring the overall activity of the Hub at the highest level. High Powered Monitoring Committee will have the power to decide about any addition of new activities/ functions for the Hub.

Advisory Committee

Advisory Committee would be chaired by a representative of Industry Associations. It is primarily vested with the responsibility of advising the NSSH regarding the new interventions which can be incorporated for providing entrepreneurial support to SC/ST entrepreneurs. This committee will help in better implementation of the scheme by providing industry point of view to the hub.

Project Screening Committee (PSC)

This committee would be chaired by the Secretary (SME/NSSH) and supported by representatives from IFW, 0/o DC(MSME), KVIC, Coir Board, NSIC, and NSSH Cell.

NSSH Cell

This NSSH Cell is created by

National Small Industries Corporation (NSIC) which has introduced the National SC-ST Hub (NSSH) scheme and this cell will be chaired Senior GM level officer. The main function of the cell is to perform day to day operations related to the execution of the NSSH scheme The NSSH cell is reporting to Functional Director-NSIC, who is, in turn, reporting to CMD-NSIC.

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Frequently Asked Questions

Common questions about National SC & ST Hub Scheme Revised Guidelines.

The key objective of the NSSH scheme is to enhance the participation of SC/ST entrepreneurs and promote entrepreneurship culture among the SC/ST population. The scheme aims to enable SC/ST entrepreneurs to participate in the public procurement process and fulfill the mandated target of 4% procurement from SC/ST enterprises under the Public Procurement Policy.

According to the Ministry of MSME's memorandum dated 20th February 2014, SC/ST enterprises are defined as follows: In the case of a proprietary MSE, the proprietor must be from the SC/ST community. For a partnership MSE, SC/ST partners must hold at least 51% shares in the unit. In the case of private limited companies, at least 51% of the shares must be held by SC/ST promoters.

The key functions of the National SC & ST Hub include encouraging SC/ST-owned MSEs to achieve at least 4% of total procurement by the government and CPSEs, preparing strategies to enable SC/ST units to participate in public procurement, collecting and disseminating information about SC/ST enterprises and entrepreneurs, facilitating vendor development programs and mentoring support, organizing skill development programs, providing handholding and mentoring support, and facilitating credit linkages for SC/ST entrepreneurs.

The NSSH scheme has introduced several components or interventions to cater to the needs of SC/ST MSEs, such as special credit-linked capital subsidy for technology enablement, capacity building for existing and aspiring SC/ST entrepreneurs, support for enhancing competitiveness through various reimbursement sub-schemes/interventions, and a special marketing assistance scheme (SMAS) for SC/ST entrepreneurs.

The National SC & ST Hub operates out of the National Small Industries Corporation (NSIC) headquartered in Delhi, supported by a special cell. It has three communities: the High Powered Monitoring Committee (HPMC), the Advisory Committee, and the Project Screening Committee (PSC). The NSSH Cell, created by NSIC, performs day-to-day operations related to the execution of the NSSH scheme.

The High Powered Monitoring Committee (HPMC), chaired by the Minister of MSME and supported by Minister/s of State (MSME), is responsible for monitoring the overall activity of the Hub at the highest level. The HPMC also has the power to decide on the addition of new activities or functions for the Hub.

The Advisory Committee, chaired by a representative of Industry Associations, is responsible for advising the NSSH regarding new interventions that can be incorporated to provide entrepreneurial support to SC/ST entrepreneurs. This committee helps in better implementation of the scheme by providing an industry point of view to the hub.

The Project Screening Committee (PSC) is chaired by the Secretary (SME/NSSH) and supported by representatives from various organizations, including IFW, 0/o DC(MSME), KVIC, Coir Board, NSIC, and the NSSH Cell. This committee plays a role in the functioning of the Hub.

According to the revised guidelines, the total plan outlay of the NSSH scheme for the period from FY 2021-22 to FY 2025-26 is Rs. 438 crore.

The special marketing assistance scheme (SMAS) is one of the components or interventions introduced under the NSSH scheme specifically for SC/ST entrepreneurs. It aims to provide marketing assistance and support to SC/ST entrepreneurs to enhance their competitiveness and market reach.