Why in news?
The National Small Industries Corporation, which implements the National SC/ST Hub, has highlighted the scheme’s role in boosting entrepreneurship among Scheduled Caste and Scheduled Tribe communities. The government continues to push ministries and public‑sector undertakings to meet procurement targets for SC/ST‑owned enterprises.
Background
The National SC/ST Hub was launched in October 2016 under the Ministry of Micro, Small and Medium Enterprises (MSME). Its goal is to increase the participation of SC and ST entrepreneurs in public procurement and to help them integrate with supply chains. The hub is headquartered at the National Small Industries Corporation in New Delhi.
Key features and support
- Public procurement support: The Public Procurement Policy requires central ministries, departments and PSUs to source at least 25 % of their annual purchases from micro and small enterprises, including a 4 % sub‑target from SC/ST‑owned units. The hub assists SC/ST entrepreneurs in registering on procurement portals, obtaining quality certifications and meeting eligibility criteria.
- Capacity building: It organises awareness camps, vendor development programmes, and skill‑development training in collaboration with industry associations and technical institutions. Aspirants receive guidance on tenders, marketing and compliance.
- Financial support: Eligible SC/ST enterprises can receive subsidies of up to 25 % of the cost of plant and machinery (capped at ₹25 lakh). The hub reimburses the cost of bank loan processing fees, performance guarantees and e‑marketplace registration fees.
- Handholding and mentorship: It links beneficiaries with schemes like Stand‑Up India and Start‑Up India, provides mentoring by successful entrepreneurs and encourages cluster‑based interventions.
- Monitoring and data: A dedicated portal collects and disseminates data on SC/ST enterprises, tracks procurement orders and provides real‑time updates to both vendors and government buyers.
Significance
The hub seeks to address historical barriers faced by SC and ST entrepreneurs by giving them access to markets, finance and technical know‑how. By encouraging ministries to meet the 4 % procurement target, it aims to create sustainable businesses and jobs in marginalised communities.
Sources: PV