NSIC RAW MATERIALS PROCUREMENT SUPPORT

Through its distribution system, the NSIC has been supplementing the availability of raw material to a large number of small industries scattered all over the country. Surplus non- ferrous scraps with the Ordinance Factories and Depots are made available to NSIC for distribution to tiny and small units.

The main objective is that the raw material should reach the genuine manufacturing units even in the hinterland. NSIC has also been importing Brass scrap and Zinc dross from abroad for distribution to small scale units. Under its Raw Material Assistance Programme, NSIC also assists in the import of OGL items as per the Import-Export Policy. Import is against specific indents received from small units and is preferably on "high-seas sale" basis depending on the requirement of individual units.

The raw material assistance programme of the Corporation now consist of the following:

- Import of OGL items for actual users with NSIC acting as their agent  
- Procurement of canalized items in `bulk' against Release Orders of the concerned canalising
- Agencies issued in favour of the units. The Corporation renders assistance by making payment for allotted quantity and delivery of the material on "Off the shelf" basis as per the requirement of the units.
- Procurement and supply of raw-material from local sources in case the units face difficulty in lifting raw-material in bulk.
- Procurement of non-ferrous scraps from Ordinance Depots and its distribution to small units.

The following are important terms and condition for supply of raw materials:

- The units are to pay earnest money @20% to 30% of the cost of landed cost of goods or the purchase price of the indigenous raw-material depending on value and nature of raw-material.
- The service charge of NSIC shall be 0.5% to 3% of the cost of the Material at the Godown depending on the time taken to liquidate stock in full & annual turnover.
- Interest is charged @ 20.5% to 21.5% on the blocked-up capital on reducing balance basis.
- Units are to lift the material within 100 days from the date of storage.

IMPORT OF RAW MATERIALS THROUGH NSIC

The Corporation opens Foreign Letter of Credit (FLC) on behalf of small units.

Similarly, the Corporation opens Inland Letter of Credit (LC), in favour of the concerned Agency in the case of indigenous raw-materials.

Items, thus procured, are kept in the godown of the unit or of the Central Warehousing Corporation, and the unit takes delivery in small lots, as per its requirement, and capacity to make the payment, so as to clear the entire stock within 100 days from the date of storage.

The Corporation continues to replenish the stock by opening repeat FLCs / ILCs so as an to ensure that production goes on smoothly.