National SC-ST Hub Scheme: For The Entrepreneur Journey (2025-26)

Introduction: Forging a New Era of Inclusive Entrepreneurship

India, a nation built on diversity and ambition, is on a determined path toward becoming a global economic powerhouse. At the heart of this journey lies the principle of inclusive growth—the belief that progress is only meaningful when every citizen has the opportunity to participate and prosper. For centuries, a significant portion of our society, particularly the Scheduled Castes (SC) and Scheduled Tribes (ST), has faced historical disadvantages that created barriers to their economic empowerment. While talent and potential are abundant within these communities, access to capital, markets, and mentorship has often been a distant dream.

Recognizing this gap, the Government of India has shifted its focus from mere welfare to active economic empowerment. The launch of the National Scheduled Caste and Scheduled Tribe Hub (NSSH) in October 2016 by the Hon’ble Prime Minister was a landmark moment in this transition. It marked the beginning of a focused, mission-mode approach to cultivate a robust culture of entrepreneurship among SC and ST communities. The National SC ST Hub is not just another government scheme; it is a dynamic, multi-faceted ecosystem designed to empower, enable, and elevate SC/ST entrepreneurs, transforming them from job seekers into job creators.

As we look towards 2025-26, the role of Micro, Small, and Medium Enterprises (MSMEs) as the backbone of the Indian economy is more critical than ever. The NSSH scheme is perfectly aligned with this vision, aiming to integrate SC/ST-owned MSMEs into the mainstream commercial landscape. Its primary mandate is to help these entrepreneurs contribute to and benefit from the nation’s growth story, specifically by fulfilling the 4% public procurement target for Central Government departments and Public Sector Enterprises (PSEs) from SC/ST-owned enterprises.

This comprehensive guide is designed to be your one-stop resource for understanding the SCST Hub Scheme in 2025-26. We will delve deep into its objectives, explore its many sub-schemes in great detail, provide real-world examples, and offer a step-by-step roadmap on how you, as an aspiring or existing SC/ST entrepreneur, can leverage this powerful platform to build and scale your business. Whether you are a young student with a budding idea or an established business owner looking to expand, this article will equip you with the knowledge to turn your entrepreneurial vision into a reality.

The Why Behind the Hub – Foundation and Vision for 2025-26

To truly appreciate the National SC-ST Hub Scheme, we must first understand the problem it was created to solve and the vision that drives it forward.

The Historical Context: The Need for a Dedicated Hub

For decades, SC and ST entrepreneurs have navigated a challenging business environment. The hurdles were numerous:

• Access to Finance: Traditional lending institutions often viewed them as high-risk, making it difficult to secure loans for starting or expanding a business.
• Market Linkages: A lack of networks and connections meant they struggled to find buyers for their products and services, especially large, credible buyers like government departments.
• Technology Gap: Limited exposure and resources prevented them from adopting modern machinery and technology, affecting their productivity and competitiveness.
• Capacity Constraints: A lack of formal business training, mentorship, and handholding support made it difficult to manage finances, marketing, and operations effectively.

These challenges resulted in a significant underrepresentation of SC/ST-owned businesses in the national economy, particularly in the formal MSME sector.

The Game-Changer: The Public Procurement Policy, 2012

The Central Government took a groundbreaking step with the Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012. This policy mandated that every Central Ministry, Department, and Central Public Sector Undertaking (CPSU) must procure a minimum of 25% of their total annual purchases of goods and services from MSEs.

Crucially, within this 25% target, a sub-target of 4% was specifically reserved for procurement from MSEs owned by Scheduled Caste and Scheduled Tribe entrepreneurs.

This was a revolutionary policy, creating a massive, guaranteed market worth thousands of crores for SC/ST-owned businesses. However, a policy alone is not enough. A significant gap existed between the procurement target and the on-ground reality. SC/ST entrepreneurs needed a support system to build their capacity, improve their quality, and gain the confidence to bid for these large government tenders.

This is precisely where the National SC-ST Hub comes in.

Objective of the National SC-ST Hub (NSSH):

To provide professional support to Scheduled Caste and Scheduled Tribe Entrepreneurs to fulfill the obligations under the Central Government Public Procurement Policy for Micro and Small Enterprises Order 2012, adopt applicable business practices, and leverage the Stand-Up India initiative.

The Hub acts as a bridge, connecting SC/ST entrepreneurs with the opportunities created by the Public Procurement Policy. It works to increase the number of SC/ST suppliers in the government supply chain and ensure they can deliver products and services that meet the required quality standards.

Vision for 2025-26: From Mandate to Movement

As we move into 2025-26, the vision for the SCST Hub MSME initiative is expanding beyond simply meeting the 4% procurement target. The focus is on creating a self-sustaining, vibrant, and competitive ecosystem. The key trends shaping this vision are:

1. Deepening Impact: The scheme has already shown remarkable results. Procurement from SC/ST MSEs surged from a mere ₹99.37 crore in FY 2015-16 to ₹1705.43 crore in FY 2023-24—a more than 17-fold increase. The goal for 2025-26 is to accelerate this momentum further.
2. Focus on Technology and Services: Recognizing the changing economic landscape, the Hub is expanding its support to include the services sector and businesses leveraging modern technology, including Industry 4.0.
3. Data-Driven Governance: With tools like the new interactive dashboards for monitoring schemes, the Hub is ensuring greater transparency, efficiency, and real-time tracking of progress.
4. Strengthening the Ecosystem: The future lies in stronger collaboration with industry bodies like CII and DICCI, premier management institutions like the IIMs, and financial institutions to provide holistic, 360-degree support.

Who is the Scheme For?

The SCST Scheme is designed for a broad spectrum of individuals from the Scheduled Caste and Scheduled Tribe communities:

• Aspiring Entrepreneurs: Students, youth, or any individual with a business idea who wants to start their own enterprise.
• Existing Entrepreneurs: Individuals who already own and run a Micro or Small Enterprise and are looking to scale up their operations, modernize their technology, or enter new markets.

The only prerequisite is the ambition to build a successful business. The NSSH provides the tools, resources, and support to help you achieve it.

The Pillars of Support – A Deep Dive into NSSH Sub-Schemes

The National SC ST Hub is built on several powerful sub-schemes, each designed to address a specific challenge faced by entrepreneurs. Think of these as a toolkit, where you can pick and choose the support you need at different stages of your business journey. Let’s explore these pillars in detail for 2025-26.

1: Financial Support – Fuelling Your Business Engine

Capital is the lifeblood of any business. The NSSH offers powerful financial incentives to ease the burden on entrepreneurs.

Special Credit Linked Capital Subsidy Scheme (SCLCSS)

This is one of the flagship components of the SCST Hub Scheme.

• What is it? It provides an upfront capital subsidy when you take a term loan from a bank to purchase eligible plant, machinery, and equipment for your business. This subsidy reduces the loan amount you have to repay, lowering your financial burden and interest costs.
• The Benefit: You get a 25% subsidy on the purchase of plant & machinery, up to a maximum of ₹25 lakh.
• Simple Example: Let’s say you want to set up a small manufacturing unit and the cost of machinery is ₹80 lakh. You take a bank loan for this amount. Under SCLCSS, you would be eligible for a 25% subsidy on ₹80 lakh, which is ₹20 lakh. This amount is directly adjusted against your loan, meaning you only have to repay the principal on ₹60 lakh. If your machinery cost is ₹1.2 crore, the subsidy is capped at the maximum limit of ₹25 lakh.
• Key Update: This scheme is not just for manufacturing anymore. It has been extended to the Service Sector, a massive boost for entrepreneurs in areas like IT, logistics, hospitality, healthcare, and more.
• Impact: The SCLCSS has seen a huge surge in utilization. In FY 2023-24 alone, a subsidy of ₹72.40 crore was released to 645 SC/ST-owned MSEs, showcasing its immense popularity and effectiveness.

Reimbursement of Fees for Financial Access

The Hub also helps reduce the incidental costs associated with getting finance.

• Bank Loan Processing Fee: When you apply for a loan, banks charge a processing fee. The Hub will reimburse 80% of this fee, up to a maximum of ₹1 lakh.
• Performance Bank Guarantees (PBG): When you win a government tender, you often need to provide a PBG, which has a cost. The Hub reimburses 80% of the charges for issuing this guarantee, up to ₹1 lakh.

2: Market Access – Connecting You to Customers

Having a great product is useless if you can’t find buyers. The NSSH focuses heavily on creating market linkages.

Special Marketing Assistance Scheme (SMAS)

This scheme helps you showcase your products and services to a wider audience.

• What is it? It facilitates the participation of SC/ST entrepreneurs in domestic and international trade fairs and exhibitions. This is a golden opportunity to network, find new customers, understand market trends, and see what your competition is doing.
• The Benefit:
  • Space Rental: The Hub pays for the stall/space at the exhibition.
  • Travel: For international events, it provides a 100% subsidy on economy class airfare. For domestic events, travel costs are also supported.
  • Daily Allowance: A generous daily allowance is provided to cover expenses during the event.
• Impact: In FY 2023-24, 732 SC/ST MSEs were supported to participate in 31 domestic exhibitions through this scheme.

Vendor Development Programmes (VDPs)

These are highly focused events that bring buyers and sellers to the same table.

• What is it? The NSSH, in collaboration with CPSEs, organizes Special Vendor Development Programmes (SVDPs). At these events, large government companies (like NTPC, BHEL, ONGC) present their procurement needs, their quality standards, and their vendor registration process directly to SC/ST entrepreneurs.
• The Benefit: This is a direct marketing platform. You get to interact face-to-face with procurement managers of large organizations, a chance that would otherwise be very difficult to get.
• Impact: In FY 2023-24 alone, 123 SVDPs were organized, with the participation of 6,955 SC/ST entrepreneurs.

Single Point Registration Scheme (SPRS) of NSIC

This is a powerful certification that opens many doors in government procurement.

• What is it? The National Small Industries Corporation (NSIC) maintains a register of Micro & Small Enterprises. Getting registered under this scheme comes with several benefits.
• The Benefit via NSSH: The Hub provides a 100% subsidy on the registration fee, requiring you to pay only a nominal fee of ₹100.
• Advantages of SPRS Registration:
  • Tender sets are issued free of cost.
  • Exemption from payment of Earnest Money Deposit (EMD) in tenders.
  • In tenders where price is not the sole criterion, MSEs quoting a price within a band of L1+15% may be allowed to supply a portion of the requirement by bringing their price down to the L1 price.

E-commerce and Export Promotion

In the digital age, being online and thinking global is key.

• Government e-Commerce Portals: The Hub reimburses 80% of the membership fee, up to ₹25,000, for joining government-promoted platforms like GeM (Government e-Marketplace).
• Export Promotion Council Membership: To encourage exports, the Hub reimburses 80% of the membership/subscription fee, up to ₹20,000, for joining an Export Promotion Council relevant to your industry.

3: Capacity Building – Sharpening Your Skills for Success

Entrepreneurship requires a diverse skill set. The NSSH invests heavily in training and education.

Skill Development and Training

• What is it? The Hub sponsors a wide range of free training programs for both aspiring and existing entrepreneurs. These cover technical skills (e.g., welding, CNC machine operation), IT skills, and general entrepreneurship skills.
• The Benefit: These trainings are free of cost. In many cases, the Hub also provides free trade-specific toolkits to the candidates upon successful completion of the training, enabling them to start their work immediately.
• Future Focus: For 2025-26, the focus is increasingly on high-growth and emerging sectors, including Industry 4.0 technologies like AI, IoT, and 3D printing.
• Impact: In FY 2023-24, 5,396 SC/ST individuals were trained, with a commendable 33% participation from women.

Top-Tier Management Education

• What is it? For entrepreneurs who want to take their business to the next level, the Hub supports them in attending short-term management development programs at India’s best business schools.
• The Benefit: The scheme provides a reimbursement of 90% of the course fee, up to a maximum of ₹1 lakh, for attending programs at the top 50 NIRF-ranked management institutions.

Case Study in Action: The IIM Bodhgaya Business Accelerator Program (2025) A perfect, forward-looking example of this is the “Business Accelerator Program” organized by IIM Bodhgaya for existing SC/ST entrepreneurs, starting in February 2025.

• Program: A 72-hour intensive training program (both on-campus and virtual) covering formal management concepts, access to industry-best mentors, and capacity-building interventions.
• Cost: The total program fee is ₹1.1 lakh plus GST.
• NSSH Support: Under the scheme, assistance of 90% is provided, which amounts to ₹99,000 per candidate.
• Result: The entrepreneur only has to pay a small share of ₹5,500 + GST. This makes world-class management education from a premier IIM accessible to all.

4: Quality and Competitiveness – Building a Brand of Trust

In a competitive market, quality is non-negotiable, especially when dealing with government buyers.

• Testing Fee Reimbursement: To ensure your products meet national and international standards, you need to get them tested at certified labs. The Hub supports this by reimbursing 80% of the testing fees, up to a maximum of ₹1 lakh. This helps you acquire quality certifications that build trust with your customers.

Summary Table of Key NSSH Benefits (2025-26)

The NSSH Ecosystem in Action

The National SC-ST Hub is more than just a collection of schemes. It is a living ecosystem where different organizations work together to support the entrepreneur.

How the Hub Operates

• Implementing Agency: The National Small Industries Corporation (NSIC), a Government of India enterprise under the Ministry of MSME, is the main implementing agency for the NSSH.
• NSSH Offices (NSSHOs): The Hub operates through a network of offices across the country. These offices are the primary point of contact for entrepreneurs, providing information, guidance, and assistance in applying for various schemes.
• Centralized Portal: The digital backbone of the Hub is its official website: www.scsthub.in. This portal is a treasure trove of information and the gateway for online registration and application for many of the schemes.

Real-World Success Story: The Power of the Hub

To understand the transformative power of the SCST Hub MSME initiative, let’s look at a real-life example highlighted by the Hub itself.

Success Story: Shri Dinesh Rajvanshi, Dint-Tech Control Pvt. Ltd., Gujarat

Shri Dinesh Rajvanshi’s journey is a testament to the power of perseverance combined with strategic support. He started his entrepreneurial journey in 1971, manufacturing industrial compressors. For years, he ran his business with determination.

To scale up and modernize his operations, he approached the National SC-ST Hub office in Surat. Through the Hub, he secured a substantial subsidy of ₹25 lakh under the Special Credit Linked Capital Subsidy Scheme (SCLCSS) to upgrade his machinery.

But the support didn’t stop there. He actively participated in several Special Vendor Development Programmes (SVDPs) organized by the Hub. These programs gave him the platform to connect with some of India’s most prestigious organizations.

The Result: Thanks to the modern technology he acquired and the market linkages he built, Shri Rajvanshi’s company received prestigious work orders from organizations like the Defence Research and Development Organisation (DRDO) and the Indian Space Research Organisation (ISRO).

In a moment of immense national pride, compressors manufactured by his MSME played an integral role in the success of India’s Chandrayaan-3 mission. His journey, from a modest start to contributing to a historic space mission, perfectly illustrates how the National SC-ST Hub can help entrepreneurs reach for the stars.

The Role of Partners: A Collaborative Effort

The NSSH’s success is built on collaboration.

• Central Public Sector Enterprises (CPSEs): They are the primary buyers. They work with the Hub to organize VDPs and sensitize SC/ST entrepreneurs about their needs.
• Banks and Financial Institutions: They are the partners for delivering financial schemes like SCLCSS and business loans.
• Industry Associations (CII, DICCI, etc.): These bodies bring industry expertise, mentorship networks, and help in organizing capacity-building programs.
• Management Institutes (IIMs, etc.): They provide world-class business education and training, elevating the managerial capabilities of the entrepreneurs.

A Step-by-Step Guide: How to Leverage the SC ST Hub in 2025-26

Now for the most important part: How can you access these benefits? Here is a practical, step-by-step guide.

Step 1: Get Your Business Registered – The Udyam Certificate

This is the foundational step for any MSME in India, and it’s mandatory to avail of NSSH benefits.

• What is it? Udyam Registration is the new, completely online, and free-of-cost registration process for MSMEs. It gives your business a permanent registration number and a recognized identity.
• How to do it? Visit the official government portal: udyamregistration.gov.in. The process is simple and requires only your Aadhaar number. No documents need to be uploaded.

Step 2: Register on the National SC-ST Hub Portal

Once you have your Udyam Registration number, the next step is to register with the Hub.

• Visit the Portal: Go to www.scsthub.in.
• Find the Registration Link: Look for the “SC/ST Entrepreneur Registration” or a similar link.
• Fill in the Details: You will need to provide your Udyam number, personal details, and business details. The process is straightforward.

Step 3: Explore and Identify the Right Schemes

Once registered, take your time to explore the portal.

• Read the Guidelines: Each sub-scheme has detailed guidelines. Read them carefully to understand the eligibility criteria, the application process, and the documents required.
• Assess Your Needs:
  • Need money for a new machine? Look at SCLCSS.
  • Want to participate in a trade fair? Check out SMAS.
  • Need to improve your business skills? Explore the Capacity Building programs.
• Contact Your Nearest NSSHO: If you have any doubts, don’t hesitate to contact the National SC-ST Hub Office (NSSHO) in your region. Their contact details are available on the website. They are there to help you.

Step 4: Prepare Your Documents

While many processes are online, you will need to have some documents ready. The exact list varies by scheme, but a typical set includes:

• Udyam Registration Certificate
• GST Registration Certificate (if applicable)
• Caste Certificate
• Aadhaar Card and PAN Card of the proprietor/partners/directors
• Bank Account Details of the enterprise
• Project Report for bank loans
• Quotations for machinery (for SCLCSS)

Step 5: Apply and Follow Up

• Online Application: Many schemes allow for online applications through the Hub portal or the portals of nodal banks (like SIDBI for SCLCSS).
• Follow Up: After applying, keep track of your application status. If required, follow up with the concerned office or bank.

Tips for a Successful Application

1. Be Thorough: Fill out all forms completely and accurately.
2. Keep Documents Ready: Have clear, scanned copies of all required documents.
3. Create a Good Project Report: If applying for a loan, a well-prepared project report that details your business plan, market analysis, and financial projections is crucial.
4. Be Proactive: Attend the Vendor Development Programmes and awareness events organized by the Hub. Networking is key.
5. Don’t Give Up: The process might seem daunting at first, but the support system is there to guide you. Be persistent.

Looking Ahead – The Future of the NSSH (2025-26 and Beyond)

The National SC-ST Hub is a constantly evolving platform. As we look to the future, several key trends will define its next phase of growth.

• Deeper Digital Integration: Expect more services to move online, making the application and tracking processes even more seamless and transparent. The success of the SCLCSS dashboard will likely be replicated for other sub-schemes.
• Focus on High-Value and Niche Sectors: While traditional sectors remain important, there will be a greater push to support entrepreneurs in high-growth areas like green technology, artificial intelligence, defence manufacturing, and advanced services.
• Cluster-Based Development: The Hub may adopt a cluster-based approach, identifying specific districts or regions with a high concentration of SC/ST population and developing targeted interventions based on the local skills and resources.
• Enhanced Mentorship: The future will see a more structured mentorship framework, connecting new entrepreneurs with experienced business leaders and successful SC/ST entrepreneurs for long-term guidance.
• Integration with Other Schemes: The Hub will work in even closer synergy with other major government initiatives like Stand-Up India, Startup India, and the Production Linked Incentive (PLI) schemes to provide a comprehensive support structure.

The ultimate goal for 2025-26 and beyond is not just to be a conduit for subsidies but to be a catalyst for creating a generation of confident, competitive, and globally successful entrepreneurs from the SC and ST communities.

Conclusion: Your Journey to Empowerment Starts Now The Entrepreneur Journey Use Scheme (SC ST Hub)

The National SC-ST Hub Scheme represents a paradigm shift in the journey of social and economic empowerment in India. It is a powerful affirmation that the government is committed to creating a level playing field where talent and hard work, not background, determine success. With its comprehensive suite of financial, marketing, and capacity-building support, the SCST Scheme 2025-26 offers an unprecedented opportunity for SC/ST entrepreneurs to dream big and achieve bigger.

The journey from an idea to a thriving enterprise is challenging, but with the National SC ST Hub as your partner, you are not alone. The success of entrepreneurs like Shri Dinesh Rajvanshi proves that with the right support, there is no limit to what can be achieved.

If you are a member of the Scheduled Caste or Scheduled Tribe community with a passion for business, this is your moment. Explore the Hub, understand its offerings, and take that first decisive step. Your entrepreneurial journey is a vital part of India’s journey towards a truly inclusive and prosperous future.

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