The Ministry of Micro, Small and Medium Enterprises runs the National SC-ST Hub, a scheme launched in October 2016 that provides targeted support to entrepreneurs from Scheduled Caste and Scheduled Tribe communities. The scheme, implemented through the National Small Industries Corporation, offers financial assistance, skills training, business mentoring and connections to government procurement opportunities for SC and ST-owned micro, small and medium enterprises (MSMEs).
Since its start, the scheme has reached nearly 1.9 lakh entrepreneurs and trained over 54,000 candidates. Government procurement from SC and ST enterprises jumped nearly 39-fold from Rs 99.37 crore in 2015-16 to Rs 4,013.42 crore in 2025-26, showing the scheme’s success in creating market access for these businesses.
Key facts
- Scheme launched: 18 October 2016
- Total beneficiaries as of 31 July 2026: 1,90,414
- Total candidates trained: 54,499
- Procurement in 2025-26: Rs 4,013.42 crore from 12,524 MSEs
- Training in 2025-26: 10,717 candidates through 47 institutions across 27 States and 24 Aspirational Districts
- Women trainees in 2025-26: 55% of total trained
- Top participating States: Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu and Assam
- Implemented by: National Small Industries Corporation (NSIC)
Financial support for business investment
The Special Credit Linked Capital Subsidy Scheme under the National SC-ST Hub helps SC and ST entrepreneurs buy machinery, equipment and other capital assets. The scheme provides a 25 percent subsidy on the cost of equipment, capped at Rs 25 lakh. Banks or financial institutions must provide the underlying loan, and the subsidy is paid after the loan is taken. This covers both manufacturing and service businesses without restrictions on the type of product or sector. As of March 2026, the scheme had assisted 3,160 enterprises across 233 districts with total support of Rs 356.10 crore.
Government procurement registration and access
The Single Point Registration Scheme allows SC and ST MSMEs to register with NSIC to bid for government contracts. Registered businesses receive free tender documents and are waived the Earnest Money Deposit usually required in tenders. Under government procurement policy, all central ministries and public sector enterprises must reserve 4 percent of their annual purchases for SC and ST-owned MSEs out of a broader 25 percent reservation for all MSMEs.
Schemes to reduce business costs
The National SC-ST Hub includes several reimbursement schemes to lower operating expenses for SC and ST entrepreneurs:
- Bank loan processing fees: The scheme reimburses 80 percent of processing fees or Rs 1 lakh, whichever is lower, after the loan is approved and disbursed. Loans from scheduled commercial banks, non-banking finance companies and state finance corporations are eligible.
- Bank guarantee charges: SC and ST businesses can claim back 80 percent of performance bank guarantee fees or Rs 1 lakh, whichever is lower, when bidding for government tenders.
- Product testing and certification: The scheme reimburses 80 percent of testing fees or Rs 1 lakh, whichever is lower, per financial year, for tests by Bureau of Indian Standards and accredited laboratories.
- Export council membership: SC and ST MSMEs get 80 percent of membership fees to Export Promotion Councils or Rs 20,000, whichever is lower, to access export networks and information.
- E-commerce platform membership: The scheme covers 80 percent of registration fees or Rs 25,000, whichever is lower, on government e-commerce portals like Government e-Marketplace (GeM), e-Khadi and TRIFED.
Training and management support
The National SC-ST Hub funds short-term business training at the top 50 management institutes ranked under the National Institutional Ranking Framework. SC and ST entrepreneurs and their family members can attend courses lasting 1 to 30 days, with the scheme covering 90 percent of fees or Rs 1 lakh per financial year, limited to two courses annually. Training is also offered through 47 institutions across 27 States in areas like welding, computer-aided design, cafeteria management, fashion design and bamboo work, aligned with government procurement demands.
The Business Accelerator Programme provides structured mentorship to help entrepreneurs strengthen pricing, cost management, business strategy and government procurement readiness. The programme has helped enterprises like Safety and Security Engineering in West Bengal and Renergy Solution in Assam secure government contracts worth lakhs of rupees.
Marketing and exhibition support
The Special Marketing Assistance Scheme helps SC and ST businesses participate in domestic and international trade fairs. Enterprises can attend up to four domestic exhibitions and two international events per financial year. For international exhibitions, support reaches Rs 3 lakh for micro enterprises, Rs 2.5 lakh for small enterprises and Rs 1.5 lakh for medium enterprises. In 2025-26, the scheme helped 141 SC and ST MSMEs participate in 4 domestic exhibitions.
What this means for you
If you are an SC or ST entrepreneur or planning to start an MSME, the National SC-ST Hub offers multiple pathways to strengthen your business. You can access subsidised capital investment, free registration for government contracts, fee reductions for business services, and training aligned with procurement opportunities. The scheme particularly targets government and institutional buyers, offering realistic pathways to scale beyond local markets.
Government procurement contracts are often easier to win than private sector business because they follow fixed processes and transparent bidding. By registering under the Single Point Registration Scheme, you also avoid deposit requirements that typically burden small businesses.