National SC-ST Hub: An Overview

  • Launched: 18 October 2016
  • Ministry: Ministry of Micro, Small and Medium Enterprises (MSME)
  • Implemented by: National Small Industries Corporation (NSIC)
  • Objective: Enhance competitiveness of SC/ST-owned Micro and Small Enterprises (MSEs) by improving access to finance, technology, skills, mentoring, and market opportunities, especially public procurement.

Key Components and Schemes

Special Credit Linked Capital Subsidy Scheme (SCLCSS)

  • Provides 25% capital subsidy capped at ₹25 lakh for plant, machinery, and equipment upgradation.
  • Covers manufacturing and service enterprises without product/sector restrictions.
  • Progress: 3,160 MSEs received ₹356.10 crore support across 233 districts in 27 States/UTs (till March 2026).

Single Point Registration Scheme (SPRS)

  • Enables MSEs to access Government procurement through NSIC registration.
  • Includes free tender sets and EMD exemption.

Public Procurement Support

  • Under Public Procurement Policy, Central Ministries, Departments, and CPSEs must procure 25% of annual purchases from MSEs, including 4% from SC/ST-owned MSEs.

Special Marketing Assistance Scheme (SMAS)

  • Improves market access through exhibitions, trade fairs, vendor development programmes, workshops, and awareness campaigns.
  • Enterprises can participate in up to 4 domestic and 2 international events annually.
  • Financial support: International exhibition assistance capped at ₹3 lakh (micro), ₹2.5 lakh (small), ₹1.5 lakh (medium).
  • Progress (2025-26): 141 SC/ST MSEs in 4 domestic exhibitions; 247 vendor development programmes, 197 e-tendering workshops, 230 awareness workshops.

Other Support Measures

  • Bank Loan Processing Reimbursement: 80% of fees or ₹1 lakh, whichever is lower.
  • Bank Guarantee Charges Reimbursement: 80% or ₹1 lakh, whichever is lower.
  • Testing Fee Reimbursement: 80% or ₹1 lakh, whichever is lower (for NABL/BIS accredited labs).
  • Export Promotion Council Membership: 80% or ₹20,000, whichever is lower (requires IEC and RCMC).
  • Capacity Building Support: 90% reimbursement of course fees up to ₹1 lakh annually for 1-30 day programmes at top 50 NIRF management institutes (up to 2 courses/year).
  • Business Accelerator Programme (BAP): Mentoring in business strategy, pricing, operational efficiency, market positioning.
  • E-Commerce Market Access: Supports membership of GeM, e-Khadi, TRIFED, Tribes India, MSME Mart; 80% or ₹25,000, whichever is lower.

Key Achievements

  • Procurement Growth: Procurement from SC/ST-owned MSEs increased nearly 39-fold, from ₹99.37 crore in 2015-16 to ₹4,013.42 crore in 2025-26.
  • Leading States: Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu, Assam.
  • Women Participation: 55% of trained candidates were women.
  • Market-Oriented Training: Aligned with public procurement and GeM opportunities, covering cafeteria management, welding, CAD/CAM, laundry, fashion designing, bamboo-based work, etc.

Constitutional and Legal Provisions

  • Article 46: Directive Principle of State Policy to promote educational and economic interests of SCs, STs, and weaker sections.
  • Fifth Schedule: Administration of Scheduled Areas and Scheduled Tribes.
  • Sixth Schedule: Administration of tribal areas in Assam, Meghalaya, Tripura, Mizoram.
  • Protection of Civil Rights Act, 1955 and SC/ST (Prevention of Atrocities) Act, 1989.
  • Public Procurement Policy for MSEs Order, 2012 (amended) mandates 25% procurement from MSEs, with 4% from SC/ST MSEs.

Significance for UPSC

  • Addresses inclusive growth and social justice.
  • Promotes entrepreneurship among marginalized communities.
  • Enhances participation in public procurement and market access.
  • Aligns with SDGs and constitutional mandates.