Ministry of MSME's National SC-ST Hub Scheme Achieves Significant Growth in Public Procurement
The Ministry of Micro, Small and Medium Enterprises' National SC-ST Hub (NSSH) Scheme has demonstrated transformational impact by empowering Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs since its launch in October 2016. The scheme aims to build capacity of SC/ST MSEs and enable their participation in public procurement to reach the mandated 4% target of the Public Procurement Policy of Government.
Scheme Support Mechanisms and Quantitative Impact
The NSSH scheme provides comprehensive support including purchase of plant & machinery/equipment, capacity building & training, market linkage, facilitation for participation in exhibitions, credit support, Udyam registration, and Government e-Marketplace (GeM) onboarding. These interventions have resulted in remarkable growth, with public procurement from SC/ST owned MSEs increasing 37-fold from ₹99.37 crore (0.07% of total procurement) in 2015-16 to ₹3738.34 crore (1.59% of total procurement) in 2025-26. To date, more than 1.79 lakh existing and aspiring SC/ST entrepreneurs have availed various benefits from the NSSH Scheme.
Entrepreneur Success Stories Demonstrating Scheme Effectiveness
Shri Balwant Lal Suman, a mechanical engineer from Hazaribagh, Jharkhand, received critical support through the Special Credit Linked Capital Subsidy Scheme, availing ₹25 lakh in September 2023 for advanced manufacturing equipment at his company Rigtech Infra (OPC) Private Limited. This enabled machinery upgrades that enhanced production, improved quality, and boosted competitiveness, leading to successful tender bids from Rail Vikas Nigam Ltd. for fencing panels, uprights, gates, and anticlimbing devices in 2025. His enterprise expanded market reach, generated employment for 16 persons, and achieved substantial growth in annual turnover.
Shri Bahadurbhai Panchiyabhai Chaudhari from Surat, Gujarat, founded Modufurn Benchcraft LLP in June 2023 to manufacture durable high-quality furniture. The NSSH scheme facilitated his integration onto Government e-Marketplace (GeM), resulting in supply orders from the Ministry of Education, Government of India and the Education Department, Government of Gujarat. He further leveraged the Special Credit Linked Capital Subsidy Scheme, availing ₹25 lakh for machinery upgradation in March 2026, which enhanced production capacity, improved quality consistency, and enabled scalable operations.
Smt. Devi Gurjar from Jodhpur, Rajasthan, operating Ajanta Beverages in beverage and packaged drinking water manufacturing, received ₹19.41 lakh under the Special Credit Linked Capital Subsidy Scheme in May 2020. This support helped modernize her unit and strengthen production ecosystems, enabling successful market entry and public procurement participation. A key milestone was securing orders from HPCL Rajasthan Refinery Limited (HRRL) in December 2025, demonstrating the enterprise's ability to deliver at larger scale.