National SC-ST Hub Scheme

Key Features

Objective: To promote entrepreneurship among Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs and support their participation in the MSME sector.
Target beneficiaries: Existing and aspiring SC/ST entrepreneurs.
Implementing agency: National Small Industries Corporation (NSIC), under the Ministry of MSME.
Public Procurement: Supports SC/ST-owned Micro and Small Enterprises (MSEs) in participating in public procurement opportunities.
Capacity Building: Provides support for entrepreneurship development, skill development, market linkages and awareness of government schemes.
Business Support: Helps SC/ST entrepreneurs improve their competitiveness and meet the requirements of government procurement.

Important Prelims Facts

Launch: 18 October 2016, at Ludhiana, Punjab.
Public Procurement Policy: Central Ministries, Departments and CPSEs have a target of procuring 25% of their annual purchases from MSEs, of which 4% of total procurement is earmarked for SC/ST-owned MSEs.
Special Credit Linked Capital Subsidy Scheme (SCLCSS): Provides a 25% subsidy on eligible plant, machinery and equipment, subject to a ceiling of ₹25 lakh.
Ownership criteria: For an eligible partnership or private limited company, SC/ST entrepreneurs must hold at least 51% ownership.

UPSC Prelims Practice Questions

Q. The National SC-ST Hub Scheme is implemented by:

A. NITI Aayog

B. National Small Industries Corporation (NSIC)

C. NABARD

D. SIDBI

Incorrect. Answer: B

NSIC implements the scheme under the Ministry of MSME.

Q. Consider the following statements about the National SC-ST Hub Scheme:

1. It promotes entrepreneurship among SC/ST communities.

2. It supports participation in public procurement.

3. It is implemented by the Ministry of Social Justice and Empowerment.

A. 1 only

B. 1 and 2 only

C. 2 and 3 only

D. 1, 2 and 3

Incorrect. Answer: B

Statements 1 and 2 are correct. The scheme is implemented under the Ministry of MSME through NSIC.

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