The National SC-ST Hub (NSSH) is emerging as an important initiative to strengthen entrepreneurship among Scheduled Caste and Scheduled Tribe communities by helping enterprises build capabilities, access finance and technology, and connect with wider markets.
The scheme focuses on addressing key barriers faced by SC/ST-owned micro and small enterprises across different stages of business growth. Its interventions cover training, mentoring, financial assistance, technology support and market linkages, with public procurement forming a key component.
What is the National SC-ST Hub?
Launched on October 18, 2016, the National SC-ST Hub is implemented through the National Small Industries Corporation (NSIC). The scheme seeks to increase the participation of SC/ST-owned enterprises in the MSME ecosystem and public procurement.
The initiative provides support through enterprise development programmes, business mentoring, networking and knowledge-sharing activities, helping entrepreneurs strengthen their business capabilities and compete for larger market opportunities.
Expanding reach and market participation
As of July 31, 2026, the National SC-ST Hub had assisted 1,90,414 beneficiaries and trained 54,499 candidates.
The scheme has also witnessed a significant increase in procurement from SC/ST-owned MSEs. Procurement rose nearly 39-fold, from ₹99.37 crore in 2015-16 to ₹4,013.42 crore in 2025-26.
Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu and Assam emerged as the five leading States under the scheme.
During 2025-26, procurement worth ₹4,013.42 crore was recorded from 12,524 MSEs. As many as 10,717 candidates were trained through 47 institutions across 27 States, including 24 Aspirational Districts. Women accounted for 55 per cent of those trained.
Training programmes have been aligned with public procurement and Government e-Marketplace (GeM) opportunities. Areas covered include cafeteria management and food production, welding, CAD/CAM, laundry services, fashion designing and tailoring, and bamboo-based work.
Financial support for enterprise expansion
One of the major components of NSSH is the Special Credit Linked Capital Subsidy Scheme (SCLCSS).
Under the scheme, new and existing SC/ST-owned MSEs can receive a 25 per cent capital subsidy, capped at ₹25 lakh, for investment in plant, machinery and equipment financed through institutional credit.
Between its launch in 2016 and March 2026, 3,160 MSEs received support amounting to ₹356.10 crore, with the scheme extending across 233 districts in 27 States and Union Territories.
Connecting enterprises with government procurement
The Single Point Registration Scheme (SPRS) enables MSEs to access government procurement opportunities through registration with NSIC.
Registered enterprises receive benefits such as free tender sets and exemption from payment of Earnest Money Deposit.
Under the Public Procurement Policy, Central Ministries, Departments and Central Public Sector Enterprises are required to procure 25 per cent of their annual purchases from MSEs, with 4 per cent of total procurement earmarked for SC/ST-owned MSEs.
Focus on marketing and market access
The Special Marketing Assistance Scheme (SMAS) supports SC/ST enterprises in improving product visibility and competitiveness through exhibitions, trade fairs, vendor development programmes, workshops and awareness campaigns.
During 2025-26, the scheme facilitated the participation of 141 SC/ST MSEs in four domestic exhibitions, while 247 Special Vendor Development Programmes were organised with CPSEs.
The initiative also conducted 197 e-tendering workshops and 230 awareness workshops with CPSEs and government departments.
Reducing the cost of doing business
NSSH also provides support aimed at reducing some of the financial costs faced by SC/ST-owned MSEs.
Under the Bank Loan Processing Reimbursement Scheme, enterprises can receive reimbursement of 80 per cent of loan processing fees or ₹1 lakh, whichever is lower.
Similarly, the Bank Guarantee Charges Reimbursement Scheme provides reimbursement of 80 per cent of eligible performance bank guarantee charges or ₹1 lakh, whichever is lower.
The Testing Fee Reimbursement Scheme provides reimbursement of 80 per cent of eligible testing fees or ₹1 lakh, whichever is lower, helping enterprises meet product testing, licensing and certification requirements.
The scheme also supports participation in export networks by reimbursing 80 per cent of eligible Export Promotion Council membership charges, subject to a ceiling of ₹20,000 per financial year.
Building managerial and digital capabilities
The Capacity Building Management Fee Reimbursement Scheme supports short-term management training at leading institutes identified under NIRF.
SC/ST entrepreneurs and their wards can receive support for up to two courses annually, with reimbursement of 90 per cent of course fees or ₹1 lakh, whichever is lower.
NSSH also promotes digital market access through government-backed e-commerce platforms including GeM, e-Khadi, TRIFED, Tribes India and MSME Mart. The membership fee reimbursement covers 80 per cent of the fee or ₹25,000, whichever is lower, subject to the prescribed conditions.
From support to market success
Beyond financial assistance and market access, the National SC-ST Hub provides structured mentorship through its Business Accelerator Programme (BAP).
The programme focuses on areas such as business strategy, pricing, operational efficiency and market positioning, helping entrepreneurs adopt more structured and data-driven approaches and improve their readiness for government procurement.
The programme has also produced examples of enterprises securing government and public-sector contracts. Safety & Security Engineering in West Bengal, for instance, secured tenders worth ₹8.48 lakh from Power Grid Corporation of India Limited after strengthening its pricing, cost management and market positioning.
In Maharashtra, Sawalaram Enterprises secured a ₹5.10 lakh SAIL tender for hydraulic cylinders after strengthening its business strategy and understanding of government procurement.
The larger objective
The National SC-ST Hub seeks to move beyond providing standalone financial assistance by building an ecosystem in which SC/ST entrepreneurs can develop skills, access technology, compete for institutional markets and expand their businesses.
By combining capacity building with finance, market access and public procurement opportunities, the scheme is aimed at strengthening participation of SC/ST-owned enterprises in India’s MSME ecosystem and creating wider pathways for entrepreneurship, employment and economic opportunity.
-PIB
