NSIC facilitates the availability of key raw materials like Steel, Aluminium, Copper, Zinc, Polymer, Bitumen, Emulsion, Cement, etc., from bulk producers by entering into MoUs with them and providing these raw materials at competitive prices to MSMEs. Further, NSIC is implementing the Raw Material Assistance (RMA) Scheme to provide credit support to MSMEs for procurement of raw materials from the bulk manufacturers with whom NSIC has made arrangements as well as any other suppliers identified by the MSME(s).
The details of the assistance provided to MSMEs by NSIC under the Raw Material Assistance Scheme in the last two years and current year are as under:
Financial year No. of units supported Credit support provided (Rs.in lakh)
2019-20 2842 524495.62
2020-21 2699 439843.75
2021-22 2445 308303.03
(up to 26.11.2021
The government of India has taken various steps to ensure a continuous supply of raw materials to MSMEs including steel. Some of the steps taken to meet the raw material demands of MSMEs in the Steel Sector are as under:\
(i) Government has taken various steps to increase the availability of iron ore and steel which include, inter-alia, Mining and Mineral Policy reforms to ensure enhanced production and availability of iron ore, early operationalization of forfeited working mines of Odisha by the State/Central PSUs, etc., besides ramping up production and capacity utilization by steel producers.
(ii) In Union Budget 2021-22, Customs Duty has been reduced uniformly to 7.5% on Semis, Flat and Long products of non-alloy, alloy, and stainless steels. Further, Basic Customs Duty (BCD) on steel scrap has been exempted for a period up to 31 st March 2022. In addition to the above, ADD and CVD on certain steel products have also been revoked / temporarily revoked.
(iii) To give relief to secondary and MSME sector steel industry engaged in Housing/construction sector, TMT bars below 8 mm have been exempted from the purview of the Quality Control Order, as these are primarily used for non-critical applications;
(iv) Ministry of Steel has also issued clarifications to CPWD, MoRTH, etc., that steel produced through various routes of production using iron ore, steel scrap, and DRI should be treated at par if the steel produced conforms to the relevant BIS standards.