Kisan Vikas Patra Scheme 2026

This scheme helps Micro and Small Enterprises (MSEs) get more business by letting them bid on tenders, Read More... either alone or by joining forces with other similar companies. It's all about making it easier for small businesses to land bigger contracts, especially from government departments. Read less

Details

Are you a small business owner struggling to get a foot in the door for government contracts? The Consortia & Tender Marketing Scheme, run by the National Small Industries Corporation (NSIC), is here to change that. It's designed to give Micro and Small Enterprises (MSEs) a real boost in accessing markets and securing tenders from government bodies and Public Sector Undertakings (PSUs).

What Is This Scheme?

Simply put, this scheme helps your small business get noticed and participate in tenders. If you're an MSE registered with NSIC's Single Point Registration Scheme (SPRS), you can benefit. The scheme allows you to bid for tenders either as a single unit or by forming a 'consortium' – basically, a group of similar businesses pooling their strengths. This is especially useful for getting large bulk orders. NSIC also helps in arranging crucial funds like Earnest Money Deposit (EMD) and security deposits, and can even assist with accessing credit and raw materials needed to fulfill orders.

Who Can Benefit From This Scheme?

The primary beneficiaries are Micro and Small Enterprises (MSEs) that are already registered under the NSIC's Single Point Registration Scheme (SPRS). If you're not registered yet but are an MSE, you can apply for SPRS registration first. The scheme is particularly helpful for those who might find it tough to meet the requirements of large tenders on their own, but can do so by collaborating with others.

Why This Scheme Is Important

In today's competitive market, small businesses often face hurdles in participating in large-scale government procurements. This scheme bridges that gap by fostering collaboration and providing financial and logistical support. It aligns with the government's Public Procurement Policy, which aims to ensure MSEs get a fair share of business, including opportunities for subcontracting. By enabling MSEs to form consortia, it allows them to compete for bigger projects, build their capacity, and ultimately grow their businesses.

Objective

This scheme helps Micro and Small Enterprises (MSEs) get more business by letting them bid on tenders, either alone or by joining forces with other similar companies. It's all about making it easier for small businesses to land bigger contracts, especially from government departments.

Benefits

The scheme offers an interest rate of 7.5 % compounded annually on investment.
Amount Invested doubles in 115 months (9 years & 7 months).
No maximum deposit limit.
Accounts can be opened in Post offices and in authorized banks.
KVP can be transferred from one person to another and from one post office to another.
KVP can be encashed after 2 and half years from the date of investment at the specified rates.

Sources and references

Guidelines-2019

Eligibility Criteria

To be eligible for this scheme, you must meet the following criteria:

You must be a Micro or Small Enterprise (MSE) registered under NSIC's Single Point Registration Scheme (SPRS).
Alternatively, if you are an MSE and are applying for SPRS registration with all the necessary documents, you can also be considered.
Your factory or unit must be inspected and approved before you can file a tender under the Tender Marketing Scheme.

How To Apply

The application process generally involves registering under the Single Point Registration Scheme (SPRS) if you haven't already, and then applying for enlistment under the Consortia & Tender Marketing Scheme. Here's a general outline:

Obtain SPRS Registration: If not already registered, apply for the Single Point Registration Scheme (SPRS) with NSIC.
Apply for Enlistment: Submit your application for enlistment under the Consortia & Tender Marketing Scheme.
Form a Consortium (if applicable): If you plan to bid as a group, form a consortium with at least one other MSE.
Submit Documents: Provide all the required documents as specified by NSIC.
Pay Fees: Deposit the applicable enlistment fee.
Inspection: Your unit may be inspected to verify your manufacturing capacity and infrastructure.

For detailed application procedures and specific forms, please refer to the official NSIC website.

Official Application Link:

National Small Industries Corporation (NSIC)

Documents Required

When applying, you'll typically need to provide the following documents:

Passport-sized photograph for each proprietor, partner, director, or society office bearer, along with proof of residence.
A self-attested copy of your G.P. Registration Certificate.
A Power of Attorney (Annexure – B), Board Resolution (Annexure – C), or Society Resolution (Annexure – H) that authorizes a specific person to deal with NSIC for enlistment, tender participation, and consortium formation.
Bank-attested specimen signatures of the authorized persons.
Copies of recent supply orders received by your business.
Proof of payment for the enlistment fee.

Official Sources:

CTMS Scheme Details

FAQ’s

What happens if a consortium member defaults on an order?

All consortium members are considered jointly and severally responsible for any penalties or damages. If a unit fails to supply or comply with an order, including issues with specifications, quantity, quality, or delivery, NSIC can revoke the enlistment certificate under the Tender Marketing Scheme.

Can NSIC help with financing for businesses under this scheme?

Yes, definitely! If your MSE wants financial help for supplies against a tender, you can apply under NSIC's Bill Discounting Scheme.

How is the monetary limit determined for the Consortia & Tender Marketing Scheme?

The limit is set at 300% of the monetary limit already fixed for your unit under the Single Point Registration Scheme (SPRS). When participating as a consortium, the individual limits of all members are added together to determine the consortium's overall limit.

What is the minimum number of businesses required to form a consortium?

You need at least two MSEs to form a consortium.

Is it mandatory for units to be inspected before participating in tenders?

Yes, pre-inspection is required. This is to physically verify that the MSEs wanting to supply goods or services have the necessary production capabilities and infrastructure to fulfill the tender requirements.

Does the Public Procurement Policy allow purchases through NSIC's consortia?

Yes, it does. The Public Procurement Order 2012 for MSEs, which is mandatory since 2015, includes consortia of MSEs formed by NSIC in the annual procurement goals.

What is the validity period for the monetary limit set under this scheme?

The established limit is valid for one year and needs to be reviewed and renewed annually.

Are medium enterprises eligible for benefits under the Public Procurement Policy?

No, the Public Procurement Policy is exclusively for Micro and Small Enterprises (MSEs).

What is the minimum overall procurement target from MSEs for Central Government Departments/PSUs?

Every Central Ministry, Department, and PSU must aim to purchase a minimum of 20% of their total annual purchases of products or services from MSEs.

What is the provision if NSIC arranges the Security Deposit or Performance Bank Guarantee?

If NSIC provides the Security Deposit or Performance Bank Guarantee, the participating MSEs must provide either a Back-to-Back Bank Guarantee or deposit 100% of the Security Deposit amount for the period NSIC has guaranteed it to the buying department.

Does the commitment made by the consortium leader bind the other members?

Yes, the elected consortium leader is authorized to interact with the NSIC office for tender participation and related matters, and their commitments are binding on the consortium members.

Are there any items reserved for procurement under the Public Procurement Policy?

Yes, there are 358 items reserved under the Public Procurement Policy for procurement from MSEs.

What is the price preference (price band) MSEs receive under the Public Procurement Policy?

MSEs quoting prices within 15% of the lowest bidder (L1 price, if L1 is not an MSE) are allowed to supply up to 20% of the total requirement. They must match the L1 price to do so.

Is the Security Deposit waived under the Public Procurement Policy?

Yes, following the issuance of the Public Procurement Order 2012 for MSEs, the requirement for a Security Deposit has been abolished.

Who is responsible for paying the charges when participating in a tender through the Consortia & Tender Marketing Scheme?

All charges related to Bank Guarantees, Security Deposits, and Performance Bank Guarantees are to be borne by the individual participating units.

What is the Consortia & Tender Marketing Scheme all about?

This scheme helps Micro and Small Enterprises (MSEs) overcome challenges in securing and executing large orders individually. NSIC facilitates this by forming consortia of units that manufacture similar products, thereby easing marketing problems for these MSEs.

What percentage of the total procurement is earmarked for MSEs owned by SC/ST under the Public Procurement Policy?

Out of the 20% annual procurement target for MSEs, 4% is specifically earmarked for units owned by Scheduled Castes (SC) and Scheduled Tribes (ST).