National Small Industries Corporation (Ministry of Micro, Small and Medium Enterprises) launched a Raw Material Assistance Scheme which aims at helping MSMEs by way of financing the purchase of Raw Material (both indigenous & imported). This gives an opportunity to MSMEs to focus better on manufacturing quality products.
Overview of Raw Material Assistance Scheme
|Name||Raw Material Assistance Scheme|
|Also known as||RMA|
|Launched by||Government of India|
|Nodal Ministry||Ministry of Micro, Small and Medium Enterprises|
|Sector||Central sector scheme|
|Objective||focus better on manufacturing quality products.|
Objective and benefits of Raw Material Assistance Scheme
•Financial assistance (Credit) for procurement of raw material up to 90 days.
•Materials facilitated under Bulk supplies arrangements are provided at bulk supplier’s rate by eliminating the middlemen and thus goods are procured at a lower price.
•Discounts received under bulk supplies arrangements are shared with MSMEs, enabling them to reduce cost of purchase of materials (Economies of Scale).
•Availability of raw material on credit and enabling MSMEs to execute the orders in hand.
How to apply for Raw Material Assistance Scheme