The National

SC-ST Hub
Action Plan

At the forefront
of Inclusive Growth!
 Table of Contents
1 Introduction 6

2 Structure of the National SC-ST Hub 8

A) High Powered Monitoring Committee 8

B) Advisory Committee 9

C) Empowered Project Approval Committee 9

3 Agenda for Action 10

A) MSME Databank 10

B) Vendor Development Programmes 12

C) Mentoring MSMEs 13

D) Finance Facilitation Centre 14

E) Consortiums of SC-ST Suppliers 15

F) Management Information System (MIS) 16

G) Awards and Felicitation 17

H) Marketing Assistance 18

I) Private Affirmative Action 19

J) Capacity Building 20

K) Collaboration with States 22

Acronyms
B2B – Business-to-Business

CII – Confederation of Indian Industry

CPSEs – Central Public Sector Enterprises

CSR – Corporate Social Responsibility

DICCI – Dalit Indian Chamber of Commerce & Industry

FICCI – Federation of Indian Chambers of Commerce and Industry

MIS – Management Information System

MSEs – Micro & Small Enterprises

MSMEs – Micro, Small & Medium Enterprises

NEDFi – North Eastern Development Finance Corporation Limited

NMCP – National Manufacturing Competitiveness Programme

NSIC – National Small Industries Corporation Limited

NSSH – National SC-ST Hub

PMEGP – Prime Minister’s Employment Generation Programme

R&D – Research & Development

SC-ST – Scheduled Caste/Scheduled Tribe

TRIFED – Tribal Cooperative Marketing Development Federation of

India Limited

UAM – Udyog Aadhaar Memorandum

COLLABORATE
ASSIST GROW
Those who are at the bottom of the
economic pyramid should be given
every chance to rise. We should make
all possible efforts to encourage
entrepreneurship in these sections.

Shri Narendra Modi

Prime Minister of India

The National SC/ST Hub Action Plan | 5

 THE NATIONAL SC-ST Hub
WITH YOU ON THE GROWTH
ROADMAP

Introduction

I
ndia is witnessing rapid growth and prosperity. For this to be truly inclusive,
all sections of the society need to partake in this prosperity. Besides wage
employment and education, the marginalised sections of the society also
need to envision, create and scale-up ventures to be a major participant in this
growth story. While in the past, there has been some increase in the number of
SC-ST-owned enterprises, this needs to increase substantially to enable the
socio-economic empowerment of the SC-ST communities. In this context, the
National SC-ST Hub is an initiative of the Government of India targeted towards
developing a supportive ecosystem for SC-ST entrepreneurs.

The Government of India and the State Governments have launched a number
of schemes to support entrepreneurship development. Special schemes have
also been earmarked for SC-ST enterprises. Several exclusive organisations
such as the National Scheduled Castes Finance and Development Corporation,
and the National Scheduled Tribes Finance and Development Corporation
work dedicatedly for the cause of entrepreneurship among SC-STs, aided
suitably by organisations at the state level. The Hon’ble Prime Minister of India,
has launched a flagship programme – ‘Standup India’ to further the cause of
entrepreneurship among the marginalised sections of the society. Under this

The National SC-ST Hub is an initiative of the

Government of India targeted towards developing
a supportive ecosystem for SC-ST entrepreneurs.
6 | The National SC/ST Hub Action Plan
programme, all branches of banks would adopt and provide loan to at least one
entrepreneur belonging from the SC-ST community to SC-ST categories. The
Public Procurement Policy for Micro & Small Enterprises Order mandates 4% of
annual procurement of goods and services by Central Ministries/Departments
and Public Sector Enterprises from SC-ST Micro & Small Enterprises w.e.f.
1st April, 2015. It has been reported that at present, Government procurement
from SC-ST enterprises is less than 1% due to low participation of the SC-ST
enterprises. This needs to be scaled up to meet the procurement target from
SC-ST units.

The National SC-ST Hub (NSSH) would support SC-ST enterprises in technological
upgradation and capacity building thereby enabling them to effectively participate
in procurement processes. This would involve participation by CPSEs/Central
Ministries, States, Industry Associations such as DICCI and others. The Hub
would also work towards the development of new entrepreneurs to participate in
procurement processes leveraging on the ‘Standup India’ programme. Selected
entrepreneurs would be provided with support and mentoring by industry experts,
CPSEs, and incubators.

To start with, the Ministry of Micro, Small & Medium Enterprises (M/o MSME), has
made an initial allocation of ` 490 crore for the period 2016-2020 for the National
SC-ST Hub. Discussions with various stakeholders have enabled the Ministry
to create an initial agenda for action on this front. While the agenda for action is
flexible and would evolve with further inputs from stakeholders and more robust
data, initially it attempts to address gaps that exist across multiple drivers of the
entrepreneurial ecosystem. This Action Plan is an effort to utilise various existing
schemes spread across departments and Government bodies, to effectively
leverage the opportunities and benefits set aside for the SC-ST sections.
Amongst other themes, the Plan also envisages to seek ways to encourage the
private sector to introduce diversity in their supply chains. Periodic monitoring
and evaluation of the effectiveness of interventions suggested in improving the
participation of SC-ST promoted MSEs1 and in achievement of 4% procurement
target would be an integral part of the Action Plan.

The National SC-ST Hub would support SC-ST

enterprises in technological upgradation and
capacity building thereby enabling them to effectively
participate in public procurement processes.
1
As per The Public Precurement Policy for MSEs Order issued by the Ministry of MSME, Government of India, only micro
and small enterprises and not medium enterprises are covered under the policy. Hence, the acronym MSE is used for
the purpose.

The National SC/ST Hub Action Plan | 7

 OPERATIONAL EXCELLENCE
ENSURING EFFICIENCIES

Structure of THE
National SC-ST Hub

T
he Hub would operate out of the National Small Industries Corporation
Limited (NSIC) headquartered in Delhi, supported by a special cell created
for this purpose. A website – www.scsthub.in has been launched to
register existing and new SC-ST entrepreneurs and to apprise them of the latest
developments regarding the public procurement drive. These entrepreneurs can
also register on the ‘Single Point Registration Scheme’ of NSIC with a nominal
payment of only ` 100. Furthermore, a mobile application would also be developed
to enhance the access of SC-ST enterprises. The different committees that are
envisaged for smooth functioning of the Hub are as follows:

A. High Powered Monitoring Committee

The Minister of MSME is the Chairperson of the committee. The committee
members are representatives of various stakeholders including States, various
Ministries, Industry Associations and SC-ST entrepreneurs. This committee
would monitor the overall activities of the Hub at the highest level. The other main
functions of the committee are:

• Formulating vision for the encouragement of SC-ST entrepreneurship

and providing guidance to the Hub for development of an effective
implementation strategy

8 | The National SC/ST Hub Action Plan

 • R
 eviewing work done by Central Public Sector
Enterprises/Central Ministries with regards
to SC-ST vendor development

• R
 eassessing and coordinating the
schemes related to the development of
SC-ST entrepreneurship, existing under
various Ministries and organisations in the
Union Government

• M
 onitoring and evaluating the work done by
the National SC-ST Hub

• Serving as a one-stop decision-making committee for all matters related to

the SC-ST Hub.

B. Advisory Committee
The Chairperson of this committee is Shri Milind Kamble, Chairman, Dalit
Indian Chamber of Commerce & Industry (DICCI). This committee works under
the High Powered Monitoring Committee. It would bring the industry and
SC-ST entrepreneurs’ perspective to the Hub with the purpose of developing
an effective, mutually beneficial relationship between the target group and the
Government. It would also help in promoting affirmative action in private sector
to encourage supplier diversity.

c. Empowered Project Approval

Committee
The Secretary, Ministry of MSME chairs this committee. As the Hub is dynamic
in nature and would evolve over the envisaged period, requirement of funds for
various activities is likely to evolve depending on the emphasis areas or changes
in identified focus areas. This committee would ensure such flexibilities with a
view to accommodate the changing requirements of SC-ST entrepreneurs.

A website – www.scsthub.in has

been launched to register existing and new
SC-ST enterprises and to apprise them of
the latest developments regarding the public
procurement drive.
The National SC/ST Hub Action Plan | 9
 TRANSFORMING
VISION INTO ACTION

Agenda for Action

A
multipronged strategy is being adopted to achieve the underlying
objectives of the National SC-ST Hub. This attempts to address the
existing gaps across multiple drivers of the entrepreneurial ecosystem
with an intent to provide growth to SC-ST entrepreneurs.

Amongst other aspects, the Hub would aid in strengthening market access/
linkages, mentoring, capacity building, leveraging financial support schemes,
and sharing industry best practices, etc.

In detail, the Hub would facilitate the following activities:

A. MSME Databank
One of the major issues which has emerged from consultations with stakeholders,
especially CPSEs and Central Ministries is lack of information about SC-
ST enterprises. A reliable database of SC-ST enterprises is a key input to
develop SC-ST vendors and input to policy formulation process. To strengthen
the role and increase the efficiency of SC-ST Micro, Small & Medium Enterprises
(MSMEs), a centralised MSME databank or repository of data is being created
by means of registration of SC-ST enterprises and by integrating data from

10 | The National SC/ST Hub Action Plan

other reliable sources. With all information related to SC-ST entrepreneurs
available centrally, there would be enhanced accessibility to this database
by procurement agencies.

Details
• T
 he MSME Development (Furnishing of Information) Rules, 2016 mandates
every enterprise to furnish information on www.msmedatabank.in. SC-ST
entrepreneurs would be encouraged to provide requisite information about
their enterprises on this website for effective collation. This activity would be
one of the prime focus areas of the special cell

• M
 SMEs owned by SC-ST entrepreneurs having Udyog Aadhaar Memorandum
(UAM) and any other Government Registration/Certification, would be
encouraged to register on the MSME Databank. Existing enterprises without
an UAM would also be roped in

• Industry Association(s) and other organisation, including DICCI would also be

encouraged to get SC-ST enterprises in this Databank. This Databank would
also eventually enable SC-ST enterprises to indicate the names of CPSEs/
Central Ministries to which the enterprise would be interested in supplying its
goods and services

• C
 entral Ministries/CPSEs would have access to this MSME Databank to have
information about the SC-ST enterprises and products and services which
are available for procurement

• T
 he Databank would also provide information on a real-time basis on all
enterprise parameters and would help both the sellers and the buyers

• T
 he MSME Databank would also be used to assess the preparedness of
enterprises with respect to becoming potential suppliers to the CPSEs/
Central Ministries/Private Sector and for designing strategic interventions as
per stated requirement.

A reliable database of SC-ST enterprises is a key

input to develop SC-ST vendors and input to policy
formulation process.
The National SC/ST Hub Action Plan | 11
B. Vendor Development
Programmes
CPSEs/Central Ministries would be encouraged to organise Vendor Development
Programmes (VDPs) with SC-ST enterprises to become part of their supply chain.
At Vendor Development Meets, CPSEs/Central Ministries would interact with
potential SC-ST suppliers and collect information about them. CPSEs/Central
Ministries would then evaluate such SC-ST enterprises and adopt them under
their Vendor Development Programmes.

Details
• A special Vendor Development Cell would be created in procurement
department of each CPSE/Central Ministry with a nodal officer for
SC-ST vendors

• Vendor Development Meets would be held for each CPSE, if possible, at the
plant level

• SC-ST enterprises would be screened by the CPSEs/Central Ministries based

on their capacity to produce products and offer services that are suitable for
their stated requirements

• Shortlisted units would be further evaluated by CPSEs/Central Ministries

directly or through third parties to identify the units that could become part of
the VDP

• Selected units that have potential to grow, would be adopted by CPSEs/

Central Ministries for further mentoring

• CPSEs/Central Ministries would also extend support to new SC-ST enterprises

as a part of Vendor Development Programme, leveraging Standup India and
other Government programmes.

• Adopted units would be supported through Industry Associations/mentors,

access to credit/financing schemes, technology upgradation or expansion for
development and growth of the unit

• Besides CPSEs/Central Ministries charting a detailed roadmap for the unit,

Industry Associations like DICCI would also be involved in planning the
development of these units

• Standup India Scheme and Venture Funding schemes would be dovetailed

with the Vendor Development Programme to facilitate funding for working
capital requirements, capacity expansion and technology upgradation.

12 | The National SC/ST Hub Action Plan

C. MENTORING MSMEs

Mentoring Programme aims at empowering SC-ST enterprises in their early

stage of business to learn from and be guided by accomplished entrepreneurs,
experienced executives, and professionals through one-on-one counselling to
achieve their full business potential.

Details
• A
 s a part of Vendor Development Programme, industry experts and mentors
who own and operate their own companies or serve in management positions
would be nominated as mentors for the adopted SC-ST enterprises

• S
 upport from specific Industry Associations and other State Government
organisations would be leveraged to handhold SC-ST enterprises in achieving
their goals

• E
 nterprises that are presently suppliers of goods and services to CPSEs/
Central Ministries or large private industry and have a turnover above a certain
threshold would be provided guidance and capacity building support

• V
arious technology business incubators set up in various Government
institutions, would be requested to include at least two new
SC-ST entrepreneurs

• A
 n online digital advisory support system would be launched to provide
support to SC-ST entrepreneurs. All support advisory services would be
rendered through this system.

An online digital advisory support system

would be launched to provide support to SC-ST
entrepreneurs. All support advisory services would
be rendered through this system.
The National SC/ST Hub Action Plan | 13
D. Finance Facilitation
CentRE
To meet the credit requirements of MSMEs, credit facilitation support systems
are designed to assist the present and prospective SC-ST entrepreneurs in their
business growth and expansion.

Details
• NSIC’s Finance Facilitation Centre would have a separate window for
SC-ST entrepreneurs. Those who want to avail credit could submit their
proposal online to the Finance Facilitation Centre

• The Financial Facilitation Centre would carry out pre-appraisal of the proposal
and take it up with financial institutions indicated by the SC-ST entrepreneurs.
This Centre would bring the SC-ST entrepreneurs and the financial institutions
together and assist in establishing credit linkages

• SC-ST entrepreneurs would be encouraged to get credit rating done with a

minimal fee under the Performance and Credit Rating Scheme of the Ministry
of MSME to facilitate credit from the banks

• Credit Linked Capital Subsidy Scheme (CLCSS) of the Ministry of MSME

provides 15% capital subsidy for loans up to ` 1 crore for select technology
upgradation. For SC-ST entrepreneurs, the scope of the subsidy would
be increased

• For the development of new SC-ST enterprises, there are a number of

schemes for financial assistance by the Central and State Governments,
such as Standup India, PMEGP, Schemes of SC-ST Finance & Development
Corporations, Venture Funding, Credit Guarantee Funds like CGTMSE and
others. The Finance Facilitation Centre would help SC-ST applicants to avail
benefits from these schemes.

Credit Facilitation Centre would be designed

to assist the present and prospective SC-ST
entrepreneurs in their business growth
and expansion.
14 | The National SC/ST Hub Action Plan
E. ConsortiUMS of
SC-ST Suppliers
There are a large number of small SC-ST suppliers who find it difficult to supply
to CPSEs/Central Ministries due to low scale of operations. To integrate these
suppliers in the supply chains of CPSEs/Central Ministries and augment their
participation, institutions like NSIC, NEDFI, State level SC-ST marketing
organisations and others would be involved to help create consortiums of
SC-ST suppliers.

Details
• State level SC-ST development organisations would be supported for
aggregation of SC-ST suppliers and developing marketing consortiums

• Such consortiums would enable small SC-ST suppliers to participate in

medium and large tenders of CPSEs/Central Ministries

• NSIC would hold targeted programmes so as to educate SC-ST entrepreneurs

to create consortiums and will handhold the consortia as the need be.

The creation of consortiums would enable small

SC-ST suppliers to participate in medium and
large tenders of CPSEs/Central Ministries.
The National SC/ST Hub Action Plan | 15
F. Management Information
System (MIS)
A Management Information System (MIS) would be created to monitor the
performance of CPSEs/Central Ministries in fulfilling their annual public
procurement target from SC-ST entrepreneurs, as well as to monitor the
progress of registered SC-ST vendors in public procurement. The MIS would be
an effective monitoring and evaluation tool to provide inputs for support to be
provided to SC-ST entrepreneurs.

Details
• To start with, procurement results of CPSEs/Central Ministries from
SC-ST enterprises would be published periodically on the website. Eventually,
such results would be published on a real-time basis on the portal as well as
on the respective websites of CPSEs/Central Ministries

• CPSEs/Central Ministries would also be requested to share the list of items

procured from SC-ST enterprises, share of procurement, enterprise details,
etc. This would include details at the plant level as well as at the enterprise
level. CPSEs/Central Ministries would also provide details of procurement
undertaken from registered SC-ST vendors

• Data analysis from MIS would be used to facilitate and guide SC-ST enterprises
to be a part of the public and private procurement programmes

• MIS would enable the government to take suitable action with respect
to enhancing procurement by CPSEs and Central Ministries from
SC-ST entrepreneurs.

MIS would be an effective monitoring and

evaluation tool to provide inputs for support to be
provided to SC-ST entrepreneurs.
16 | The National SC/ST Hub Action Plan
g. Awards and Felicitation

Awards would be introduced to promote entrepreneurship among

SC-ST entrepreneurs and develop a competitive environment among them.
It would motivate the entrepreneurs to perform better and induce other
SC-ST individuals to explore the enterprise sector.

Details
• Best SC-ST Entrepreneurs Annual Awards would be introduced for
industriousness and continued effort

• Best CPSE Procurement Award for development of SC-ST entrepreneurs in

the MSME sector

• Best Incubator Award for facilitation, collaboration with and guidance provided
to the entrepreneurial enterprises

• Best CPSE for SC-ST Vendor Development Programme

• Best Finance Facilitation Centre Award for ease in credit facilitation to

SC-ST enterprises

• Best Industry Association Award for their contribution in mentoring

entrepreneurs and extending support in creation of MSME Databank

• Best Private Affirmative Action Award to the private sector company for their
contribution in increasing supplier diversity through SC-ST enterprises.

Recognition programmes would motivate the

entrepreneurs to perform better and would
induce other SC-ST individuals to explore the
enterprise sector.
The National SC/ST Hub Action Plan | 17
h. Marketing Assistance

NSIC and the Development Commissioner, MSME would implement the scheme
of Special Marketing Assistance for SC-ST enterprises. Under this scheme,
SC-ST enterprises would be supported to participate in various domestic and
international events, trade fairs, buyer-seller meets, consortia formation, seminars
and other related marketing activities.

Details
• Assistance would be provided for SC-ST MSE enterprises’ participation
in domestic trade fairs, international trade fairs outside India and
buyer-seller meets

• Awareness campaigns would be organised to make SC-ST entrepreneurs

aware of various Government schemes

• Assistance in establishing business linkages at national and global conferences

would be provided.

SC-ST enterprises would be supported to

participation in various domestic and
international events, trade fairs, buyer-seller
meets, consortia formation, seminars and other
related marketing activities under a special
Marketing Assistance Scheme.
18 | The National SC/ST Hub Action Plan
I. Private Affirmative
Action
Private sector companies would be encouraged to increase diversity among their
suppliers by including SC-ST entrepreneurs as vendors through an affirmative
action plan.

Details
• SC-ST entrepreneurs would be linked with private sector enterprises, which
have robust affirmative action and CSR programmes for supplier diversity

• Supplier diversity would be broadened and private market opportunities for

SC-ST entrepreneurs would be developed

• Many leading corporates have signed a Code of Conduct designed by

industry organisations like CII relating to non-discrimination, assistance and
transparency in the context of employees/applicants/vendors. This supports
inclusion of the SC-ST entrepreneurs in the supply chain

• Vendor Development Meets and workshops with private companies

committed to affirmative action would be organised to integrate the
SC-ST entrepreneurs in the supply chains of these businesses

• Networking and coordination with Industry Associations, and building proper

linkages for communication and business would be undertaken

• Large private sector companies would be encouraged to undertake

standard supplier diversity programmes.

SC-ST entrepreneurs would be linked with private

sector enterprises, which have robust affirmative
action and CSR programmes for supplier diversity.
The National SC/ST Hub Action Plan | 19
J. Capacity Building

SC-ST enterprises need support in technological upgradation, enhancing

capacity and better availability of credit to cater to the larger markets. While
several government schemes exist to address the need for such support,
additional assistance would be extended to SC-ST enterprises through the Hub
to fill the gaps. Skill development and upgradation would be undertaken through
Pradhan Mantri Kaushal Vikas Yojana.

Details
• The Ministry of MSME would be sponsoring/providing financial support for
organising seminars/symposiums/workshops on various issues concerning
the SC-ST enterprises. Such activities are an essential part of the scheme
for capacity building, for strengthening of database and for advocacy by
Industry Associations

• Programmes would be undertaken to build capacity of the budding

entrepreneurs by providing knowledge in setting up and running enterprises,
in proposal making and in developing finance linkages. Programmes would
also be undertaken to create awareness about the ‘Standup India’ initiative
of Government of India besides providing post sanction handholding support

• Content for self-learning/capacity building (standardised e-learning modules-

short duration courses) in subjects like taxation, human resource, financial
management, new age marketing (online B2B services, e-tendering) would be
developed. Such cases would be facilitated through grant

• Select enterprises would be nurtured and accelerated by facilitating

infrastructure, credit, technology and marketing support

The Ministry of MSME would be sponsoring/

providing financial support for organising
seminars/symposiums /workshops on various
issues concerning capacity building of the
SC-ST enterprises.
20 | The National SC/ST Hub Action Plan
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• The responsive capacity building would involve Ex-bankers, Industry Experts,

Industry Associations and other bodies for mentorship

• Network of technology centres would be leveraged to provide support and

capacity building to SC-ST entrepreneurs towards technology upgradation,
technical learning and skill development, quality improvement, to move up in
the supply/value chain and develop and global best practices

• Programmes would be organised in collaboration with incubation centres,

educational institutions, private organisations and R&D institutions to support
capacity building

• National Manufacturing Competitiveness Programme (NMCP) would be

leveraged for SC-ST enterprises for technology upgradation.

The National SC/ST Hub Action Plan | 21

K. Collaboration with
StateS
State Governments operate various schemes to support SC-ST enterprises.
These include higher capital subsidy, allotment of industrial sheds, training,
margin money subsidy, marketing support, etc. The Hub would collaborate
with the States to seek their support in capacity building for SC-ST enterprises
and in dovetailing Central and State schemes. State Governments have large
administrative machinery at district level whose support is critical for providing
handholding assistance, mentoring and for facilitating regulatory compliances.

Details
• State level policy provisions directed towards the development of
SC-ST entrepreneurs would be harnessed for entrepreneurship development

• SC-ST entrepreneurs would be linked with State level schemes, associations

and local support centres

• Networking between State Government, State level institutions and

SC-ST entrepreneurs would be facilitated. In addition, local and community
support for SC-ST entrepreneurs would be instituted with State level initiatives.

The Hub would collaborate with the States to

seek their support in capacity building for
SC-ST enterprises and in dovetailing Central
and State schemes.
22 | The National SC/ST Hub Action Plan
Equality may be a fiction but nonetheless one
must accept it as a governing principle.
Dr. B.R. Ambedkar

The National SC/ST Hub Action Plan | 23

 THE NATIONAL SC-ST HUB
(An initiative of Ministry of MSME, Government of India)
The National Small Industries Corporation (NSIC) Limited.
(A Government of India Enterprise)
NSIC Bhawan, Okhla Industrial Estate, New Delhi-110020
URL: www.scsthub.in, email: [email protected]
facebook: @scsthub, twitter: @scsthub