NSIC Training & Incubation Centre (NSIC-TIC) Scheme for Small Entrepreneurs

The Government of India through National Small Industries Corporation (NSIC) has approved 35 new incubators based on the Public-Private Partnership (PPP) mode in Start-up India Action Plan. This creates a step ahead in reinforcing the growing start-up ecosystem in India, where the investors and firms are being encouraged as incubators. This article highlights the concepts, aspects and benefits of the scheme that facilitates NSIC-Training and Incubation Centres (NSIC-TIC) under the PPP model.

Objectives of NSIC-TIC

One of the main aims of National Small Industries Corporation (NSIC) is to promote and develop entrepreneurship in the country. It has been aiding and promoting Micro, Small and Medium Entrepreneurs (MSMEs) by launching several beneficial schemes and programs to accomplish its mission. NSIC emphasis on eliminating unemployment and encouraging first-generation entrepreneurs in establishing micro or small enterprises. However, it has limited centres across the country to carry out the training programme. Recently, the corporation launched a program called Scheme for setting up of NSIC Training-cum-Incubation Center (NSIC-TIC) for Small Enterprise Establishment Under Public-Private Partnership (PPP) Mode to collaborate with the private partners and provide handholding support to MSMEs.

Purpose of the NSIC-TIC Scheme

The scheme envisions and focuses on three major areas including employment, skill development and establishment of small business enterprises. It is,

To empower and eradicate unemployment, irrespective of the caste, creed and gender.
To train the person in acquiring skill development that includes comprehensive and analytical skills.
To motivate the skilled person in starting up a business enterprise.

Eligibility Criteria for Setting up NSIC-TIC

NSIC holds certain norms in selecting the Franchisees/Private Partner, who have prior experience in training or entrepreneurship development. The franchisees can be Educational and Technical Institution, Company, Firm, NGO, Ex-employees/Officers of NSIC etc. The roles and responsibilities that a Franchisee or a Private Partner involved in setting up a new training under NSIC-TIC are:

The franchisee should possess a readily available built-up area of 2000 sq. ft. with required power, water, for installation of the project under the scheme.
The franchisee should produce a list of training modules and the schedule of its execution. The required equipment and machinery can be procured under the support of NSIC.
The franchisee should make the necessary arrangements in terms of funds, infrastructure, equipment and machinery available for furnishing the proposed area.
The proof of fund-raising is to be attached with the Application Form.
The franchisee should render the day-to-day administration with proper management.
The franchisee is free to choose the training module from the five different modules of Training Incubation Centres (TIC).
The franchisee should appoint the faculty for the training.
The franchisee should take responsibility for widening the training program with an advertisement in local media, newspaper and digital media.
The franchisee should decide the fees and select the candidates for enrolment of the training.
The franchisee should upload the required details like Name, age, category and qualification of the enrolled trainees.

The franchisees are benefited from Sponsored Training Programmes. The franchisee has the liberty to reach out to various organisations and Government agencies for securing sponsorship for the training. NSIC has different sponsorship programs like Rajiv Gandhi Udyami Mitra Yojna (RGUMY), Backward Region Grant Fund (BRGF).

Franchise Fee payment

The franchisee should pay 15% of the total earned income from the NSIC-TIC to NSIC as Royalty.
A security deposit of Rs.20,000 or projected franchise fee of three months has to be paid to NSIC in prior to final approval.
NSIC will refund the security amount at the termination of the franchise agreement.
If the franchisee fails to commence the training program within six months, the security fund will be with-held, and the agreement will be cancelled.
The franchisee shall pay the fee to NSIC before the 5^thof every successive month. NSIC has opened the liberty for the franchisee to pay on quarterly or even longer periods.
The franchisee should guide the trainees in preparing the project reports.
The franchisee should extend its support in the form of financial assistance by submitting proposals to the banks and institutions.

Functions of NSIC in implementing the Scheme

National Small Industries Corporation (NSIC) plays a major part in introducing the scheme, as it encourages a larger population of the country to undertake new start-ups actively. The functions or responsibilities of NSIC are summarised as below,
NSIC approves the layout plan in terms of the built-up/infrastructure proposal presented by the Private Partner for setting up new NSIC-TIC.
NSIC trains the faculty appointed by the franchisees for training the NSIC-TICs.
NSIC approves the training modules proposed by the franchisees, but the modules should be in accordance with the subject as specified by NSIC.
NSIC facilitates for handholding support in the form of finance or other support required for initialising their Micro and Small Enterprises.
NSIC reviews, monitors and provides feedback on monthly reports submitted by the franchisees.

Necessary Terms & Conditions

There are other notable terms and conditions to be considered in inaugurating a training program under NSIC:

The franchisee should provide study materials and have full control of assessing the trainees.
NSIC officials may inspect and give surprise visits to their centres at regular intervals.
The trainees should be presented with a certification jointly issued by NSIC and franchisee
NSIC doesn’t approve of any sub-franchisees.
The franchisee can utilise the name of NSIC only during the tenure of setting up of NSIC Training cum Incubation Centre (NSIC-TIC) for Small Enterprise Establishment under Public-Private Partnership (PPP) Mode.
The franchisee should have limited access to the usage of NSIC logo.
The franchisee should not commit any employment assurance or opportunity to the trainee in the name of NSIC.
The franchisee should present an Indemnity Bond to NSIC for all liability claims.
The franchise agreement is valid for a year from the extension of the contract.

Application Procedure for setting up NSIC-TIC

The franchisee should fill in the Application Form meant for the purpose. The following documents must be submitted along with the application form for setting up the NSIC-TIC:

A Demand Draft in favour of ‘National Small Industries Corporation Limited.’ payable at New Delhi for Rs.5,000 including 18% of GST should be attached with the Application Form.
The passport size photographs of all the Directors, partners or any other authorised person.
Organisation’s registration certificate with Board Resolution for a Private Limited Company or Power of Attorney for a Partnership Firm.
Synopsis of the organisation’s past area of experience.
Approved layout plan for 2000 Sq.Ft with permissible infrastructure and Audited Financial Statements.
The NSIC will cross check the submitted application form in accordance with the documents and recommend to the TIC Division if found satisfactory.
On the receipt of the caution deposit, the unit confirms NSIC to drop a visit to confirm the Centre’s readiness in terms of machinery, tools, faculty appointment.
The Competent Authority of NSIC will approve the file on the receipt of the satisfactory note of the Final Inspection Report.
NSIC and the franchisee will execute the agreement and indemnity bond for a year, and the Final Approval Letter is provided to the Franchisee for setting up of the training centre.