**Executive Summary**
This document is a response to an unstarred question in the Lok Sabha regarding the Raw Material Assistance (RMA) Scheme for MSMEs in the Tirupati District, to be answered on February 12, 2026. It outlines the role of the National Small Industries Corporation Limited (NSIC) in facilitating the scheme and addressing operational issues for MSMEs, with 3 applications being received between 2023-24 and 2025-26. Action is to be taken through awareness programs and application improvement.
**Key Points / Main Content**
* **Role of NSIC under the RMA Scheme:**
* NSIC facilitates MSMEs in meeting raw material requirements through arrangements with bulk manufacturers.
* The Chennai branch office of NSIC handles all business proposals from the Tirupati district.
* **Support and Awareness Initiatives:**
* NSIC enhances awareness of the RMA scheme through outreach programs.
* NSIC offices and District Industries Centres offer handholding support to MSMEs to address operational issues during the scheme.
* **Application Status from Tirupati District:**
* No rejection or delay in processing of applications has been reported.
* NSIC received 03 applications from 2023-24 to 2025-26 (as of January 31, 2026).
* Out of the 03 applications, 01 received sanction, and 02 are under documentation.
* **Measures to Facilitate MSME Coverage:**
* NSIC is taking measures to facilitate coverage of the maximum number of MSMEs, including awareness programs.
* Procedural simplifications and strengthening of the application process from time to time.
* Handholding support to address operational issues during the application of RMA.
**Impact Analysis**
**MSMEs in Tirupati District**
* **Impact**: MSMEs can access raw materials through NSIC's arrangements and receive support to address operational issues, but they may not be aware of these supports.
* **Action Required**: MSMEs should engage with NSIC offices and District Industries Centres to explore the benefits of the RMA scheme and seek assistance with operational issues.
**National Small Industries Corporation Limited (NSIC)**
* **Impact**: Responsible for administering the RMA scheme and providing support to MSMEs in the Tirupati district.
* **Action Required**: NSIC must continue to enhance awareness of the scheme and streamline the application process to maximize the benefits for MSMEs.
**Government (Ministry of Micro, Small and Medium Enterprises)**
* **Impact**: Responsible for policy direction and oversight of the RMA scheme.
* **Action Required**: To continue to monitor the effectiveness of the RMA scheme and make adjustments as necessary to improve its impact on MSMEs.
Key Entities Referenced
Raw Material Assistance (RMA) Scheme: Scheme to facilitate MSMEs in meeting raw material requirements.
Ministry of Micro, Small and Medium Enterprises: The primary ministry responsible for the scheme's implementation.
National Small Industries Corporation Limited (NSIC): Public Sector Undertaking implementing the Raw Material Assistance (RMA) Scheme under the Ministry of MSME.
Tirupati District: Location relevant to the scope of the question about the scheme's accessibility for MSMEs.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION NO. 2176
TO BE ANSWERED ON 12.02.2026
RAW MATERIAL ASSISTANCE SCHEME FOR MSMEs
2176. SHRI MADDILA GURUMOORTHY:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) whether the Government is aware that several eligible Micro, Small and Medium Enterprises
(MSMEs) in Tirupati District have not been able to effectively access benefits under the Raw Material
Assistance Scheme meant for financing procurement of indigenous and imported raw materials;
(b) if so, the reasons for low coverage, delays or rejection of applications in the district;
(c) the number of applications received, sanctioned, pending and rejected from Tirupati District
during the last three years;
(d) the measures taken and proposed to simplify procedures, ensure timely financial assistance and
prevent exclusion of genuine MSMEs; and
(e) whether the Government proposes any compensation, interest relief or special assistance to
MSMEs in Tirupati District that suffered production losses due to delay or denial of assistance under the
Scheme and if so, the details thereof?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a) to (e): The National Small Industries Corporation Limited (NSIC), a Public Sector Undertaking
under the Ministry of Micro, Small and Medium Enterprises (MSME) under its Raw Material Assistance
(RMA) Scheme, facilitates MSMEs to meet their raw material requirement by making arrangements
with bulk manufacturers for procuring the materials and supplying the same to MSMEs. NSIC has
established its branch Office at Chennai which is nearest to Tirupati. All business proposals of Tirupati
district are looked after by its Chennai branch office.
Further, NSIC endeavors to enhance awareness of the scheme through outreach programmes.
NSIC offices as well as District Industries Centres are also providing handholding support to MSMEs to
address operational issues faced by MSMEs during availing benefits of the scheme.
No rejection or delay in processing of application has been reported. 03 applications under RMA
scheme from Tirupati districts were received by NSIC from 2023-24 to 2025-26 (as on 31.01.2026), out
of which 01 applicant received sanction and 02 applications are under documentation process.
NSIC has taken several measures to facilitate coverage of maximum number of MSMEs under
its RMA Scheme which include creation of awareness through various outreach programmes; procedural
simplifications and strengthening of application process from time to time; handhold support to address
operational issues during availing of RMA, etc.
****