The Consortia & Tender Marketing Scheme is designed to promote the products of Micro and Small Enterprises (MSEs) by enabling them to market their goods and services individually or through a consortium. Launched following a review in 2011, the scheme helps MSEs enlist themselves to participate in Government or private tenders. This initiative is an integral part of efforts to enhance market access, improve bargaining power, and facilitate efficient resource utilization among small enterprises.
Key features include:
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Coverage for MSEs registered with NSIC under its Single Point Registration Scheme (SPRS).
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Eligibility for MSEs applying for NSIC registration along with all required documents and undergoing a factory inspection before tender filing.
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Exclusion of units involved purely in trading activities without value addition, packing, or branding.
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Provision of support for Earnest Money Deposit (EMD) and security deposit on a back-to-back basis.
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Procedures for consortium formation, capacity building of MSEs, participation in tenders in bulk, distribution of orders, and facilitation of raw material procurement and credit.
The scheme also includes simplified legal documentation (such as individual agreements, consortium agreements, board resolutions, and powers of attorney) to streamline the process.
Benefits
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Enlistment for tender participation in Government and private tenders.
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Service Charges:
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Individual Units: 2.5% on bill value (before GST).
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Consortia: 2% on bill value (before GST).
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For micro units, service charges may be reduced by 0.5%.
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An additional 1% service charge applies if EMD/Security Deposit is arranged by NSIC.
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Fee Structure for Enlistment & Renewal:
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For units with a monetary limit up to ₹1,00,00,000 under SPRS: ₹1,000 + Service Tax.
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For units with a monetary limit above ₹1,00,00,000 and up to ₹5,00,00,000: ₹2,500 + Service Tax.
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For units with a monetary limit above ₹5,00,00,000: ₹5,000 + Service Tax.
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SC/ST owned units are exempt from the enlistment fee.
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Tender Participation Limit:
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The overall tender participation limit is fixed at the higher of:
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300% of the monetary limit under SPRS, or
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Last year’s turnover (certified by a Chartered Accountant), or
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In case of appreciable increase in turnover during the current financial year, the revised turnover (subject to certification).
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The limit for consortium members is clubbed and is valid for one year, subject to review and renewal.
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Consortium Formation:
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New consortia can be formed with no additional fee for formation or renewal, though enlistment fees apply at the time of tender participation.
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Eligibility
To be eligible for the scheme, the applicant must be a Micro or Small Enterprise that:
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Is registered with NSIC under its Single Point Registration Scheme (SPRS), or applies for such registration with all required documents.
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Has undergone a factory/unit inspection prior to tender filing.
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Must be engaged in manufacturing or providing value-added services (trading activities without value addition are not covered).
Application Process
The application process is offline:
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Form Submission:
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Obtain the prescribed application forms (Annexure – A and A-1) for enlistment under the Tender Marketing Scheme.
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The form must be duly signed by the authorized signatory (i.e., Proprietor/Partner(s)/Director(s)) of the firm/company/society.
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Attach all necessary documents as specified in the form.
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Submission:
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Send the completed application form along with the required documents to the concerned/regional NSIC branch office.
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Documents Required
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Passport Size Photograph of each Proprietor/Partner/Director/Society office bearer along with residential proof.
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Self-attested copy of the G.P. Registration Certificate.
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Power of Attorney (Annexure – B) or Board Resolution (Annexure – C) or Society Resolution (Annexure – H) authorizing the designated person to handle enlistment, tender participation, and consortium formation with NSIC.
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Bank Attested Specimen Signature of authorized persons.
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Copies of Recent Supply Orders.
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Enlistment Fee as per the fee structure.
Frequently Asked Questions
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What is the Consortia & Tender Marketing Scheme?
It is a scheme designed to help Micro and Small Enterprises (MSEs) market their goods and services individually or through a consortium and participate in tenders. -
What is the minimum size of a consortium?
The scheme does not specify a strict minimum size; however, eligible units must be registered with NSIC and form a consortium based on similar product lines to participate in tenders. -
Is pre-inspection of the unit mandatory?
Yes, the unit’s factory or unit must be inspected before tender filing as per the scheme guidelines. -
Is the commitment of the consortium leader with NSIC binding on all consortium members?
The consortium leader’s commitment is part of the overall consortium agreement and is generally binding on all members. -
Is the security deposit exempted under the Public Procurement Policy?
The scheme provides for the arrangement of EMD and security deposit on a back-to-back basis; details are as per the Public Procurement Order 2012 for MSME. -
What is the provision if a security deposit/Performance Bank Guarantee is deposited by NSIC?
NSIC may arrange for the deposit, and the corresponding service charges or fees will be levied as per the scheme guidelines. -
Are all consortium members jointly and severally responsible for penalties or damages?
Typically, consortium members share joint and several liability, but the specific responsibility may vary according to the consortium agreement. -
What percentage of the monetary limit under SPRS will be fixed as the limit under this scheme?
The limit is fixed at the higher of 300% of the monetary limit under SPRS or last year’s turnover, and may be adjusted based on current financial performance. -
What is the validity period of the monetary limit fixed under the scheme?
The limit remains valid for one year and is subject to annual review/renewal. -
Who will bear the charges while participating in tenders under the consortium?
Service charges are deducted from the payment receipt from the buying department. The charges vary: 2.5% for individual units and 2% for consortia, with possible reductions for micro units and additional charges for EMD/security deposit arrangements. -
Does NSIC finance consortia under this scheme?
NSIC does not finance directly but facilitates tender participation and related support services. -
What is the minimum percentage for overall procurement from MSEs under the Public Procurement Policy?
The Public Procurement Policy mandates a minimum procurement percentage from MSEs, with specific targets for MSEs owned by SC/ST. -
Are medium enterprises eligible for benefits under this policy?
The scheme is exclusively for Micro and Small Enterprises. -
What is the price preference (price band) available to MSEs under the Public Procurement Policy?
Specific price bands are determined as per the Public Procurement Policy guidelines. -
What action can NSIC take in case of default?
NSIC may enforce penalties or take remedial measures as per the terms of the consortium agreement and relevant policies.