The National Small Industries Corporation (NSIC) is expected to command financial resources worth Rs 2,000 crore to support the micro and small industries in the near future, according to its Chairman and Managing Director, Mr H.P. Kumar.

A proposal for induction of fresh government equity to the extent of Rs 300 crore is going to come up for approval of the Cabinet Committee of Economic Affairs (CCEA) soon, sources said.

With infusion of additional capital, the NSIC’s equity will go up to Rs 530 crore. Mr Kumar said if additional government equity is given, NSIC’s leveraging (borrowing) capacity would go up to Rs 2,000 crore.

“At present, we can have bank borrowing of up to Rs 1,000 crore. With additional equity, we will be able to leverage more,” Mr Kumar told PTI.

The company has also been named as the nodal agency for implementation of the recent policy to give 20 per cent reservation of orders in government departments and PSUs.

Mr Kumar said that NSIC would “do a capacity assessment of the micro and small enterprises (MSEs) through inspection agencies to know whether they can deliver the goods and maintain quality''.

A consortium of MSEs would also be formed so that a larger combined capacity is created to meet big requirements of the buying organisations.

“Through this, we will enhance the capacity for the MSEs,” he said.

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