Kisan Vikas Patra Scheme
This scheme helps Micro and Small Enterprises (MSEs) get more government contracts and big orders. You can Read More... join forces with other small businesses (form a consortium) to bid for tenders, making it easier to compete and grow. Read less
Details
Are you a Micro or Small Enterprise (MSE) struggling to get a foothold in government tenders or secure large orders? The Consortia & Tender Marketing Scheme, run by the National Small Industries Corporation (NSIC), is here to help.
What Is This Scheme?
This scheme is designed to open up more market access for MSEs. It allows small businesses to either bid for government and PSU tenders on their own or join forces with similar businesses to form a consortium. The main idea is to pool resources and capacity, making it possible to take on bigger orders that might otherwise be out of reach.
Who Can Benefit From This Scheme?
The scheme is primarily for Micro and Small Enterprises (MSEs) that are already registered with NSIC under the Single Point Registration Scheme (SPRS). If you're an MSE and haven't registered under SPRS yet, you can also apply to get registered as part of this scheme. However, businesses that only trade goods without adding any value are not eligible.
Why This Scheme Is Important
In today's competitive market, it's tough for small businesses to land big contracts. This scheme addresses that challenge by enabling MSEs to collaborate. By forming consortia, businesses can secure bulk orders, share the workload, and even get help with financial aspects like Earnest Money Deposit (EMD) and security deposits. It also ensures that orders are distributed fairly among members based on their production capabilities, fostering growth and collaboration among small units.
Objective
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
Eligibility Criteria
To be eligible for this scheme, you must meet the following conditions:
- You are a Micro & Small Enterprise (MSE) already registered with NSIC under its Single Point Registration Scheme (SPRS).
OR
- You are an MSE applying to get registered with NSIC under the SPRS and have submitted all necessary documents as per the scheme requirements.
- Your factory or unit must undergo an inspection before you can file a tender application under this scheme.
How To Apply
The application process involves registering with NSIC under the Single Point Registration Scheme (SPRS) if you haven't already. For detailed application procedures, including forms and specific instructions, please refer to the official NSIC website or contact their nearest office.
Official Application Link:
Documents Required
When applying for the scheme, you will generally need to provide the following documents:
- Passport-sized photograph for each Proprietor/Partner/Director/Society office bearer, along with proof of address.
- Self-attested copy of your G.P. Registration Certificate.
- A Power of Attorney (Annexure – B), Board Resolution (Annexure – C), or Society Resolution (Annexure – H) authorizing a Partner/Director/Executive to act on your behalf with NSIC for enlistment, tender participation, and consortium formation. You can find these annexures in the scheme document.
- Bank-attested specimen signatures of authorized individuals.
- Copies of recent supply orders you have executed.
- Proof of payment for the Enlistment Fee.
FAQ’s
What is the basic idea behind the Consortia & Tender Marketing Scheme?
This scheme helps Micro & Small Enterprises (MSEs) overcome the challenge of executing large orders individually, which can hinder their growth. By forming consortia (groups) of units that produce similar items, NSIC aims to ease marketing difficulties for MSEs.
Are medium enterprises eligible for benefits under the Public Procurement Policy?
No, medium enterprises are not eligible to avail the benefits under the Public Procurement Policy.
What is the minimum number of MSEs required to form a consortium?
A minimum of two MSEs are needed to form a consortium.
Does the Public Procurement Policy allow purchases through NSIC for consortia?
Yes. The Public Procurement Order 2012 for MSEs, which became mandatory from 2015, includes consortia of MSEs formed by NSIC in the annual procurement goals.
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 the unit under the Single Point Registration Scheme (SPRS). When a consortium participates in a tender, the limits of the individual units are clubbed together to determine the overall limit.
What happens if NSIC provides the Security Deposit or Performance Bank Guarantee?
If NSIC arranges these, the participating MSEs must provide a Back-to-Back Bank Guarantee or deposit 100% of the value of the Security Deposit for the period NSIC has guaranteed it to the Buying Department.
Is a pre-inspection of the unit mandatory?
Yes, a pre-inspection is mandatory. This is to physically verify that the MSEs intending to supply goods or services have the necessary production capabilities and infrastructure to fulfill the tender requirements.
How many items are reserved for procurement under the Public Procurement Policy?
There are 358 items reserved for procurement under the Public Procurement Policy.
What is the validity period for the monetary limit set under the Consortia & Tender Marketing Scheme?
The fixed limit is valid for one year and is subject to an annual review and renewal.
Who is responsible for the charges when participating in a tender as a consortium?
All charges related to Bank Guarantees, Security Deposits, Performance Bank Guarantees, etc., will be borne by the participating units.
Is there any price advantage for MSEs in tenders under the Public Procurement Policy?
Yes. MSEs quoting prices within a band of L1+15 percent are allowed to supply up to 20% of the requirement by matching the L1 price, where L1 is a non-MSE bidder. This applies if the L1 bidder is not an MSE.
Does NSIC provide financing under the Consortia & Tender Marketing Scheme?
Yes. MSEs looking for financial assistance for supplies against tender orders can apply under the Corporation's Bill Discounting Scheme.
What is the minimum percentage of overall procurement that Central Government Departments/PSUs must make from MSEs?
Every Central Ministry/Department/PSU is required to set an annual goal for a minimum of 20% of their total annual purchases to be from products or services produced or rendered by MSEs.
What is the minimum size of a consortium?
The minimum number of MSEs required to form a consortium is two.
Will the consortium leader's commitment to NSIC be binding on other consortium members?
Yes, the elected consortium leader will be authorized to interact with the NSIC office for tender participation and related matters, and their commitments will be binding on the consortium members.
What are the actions NSIC can take in case of a default by a unit?
NSIC can revoke the enlistment certificate under the Tender Marketing Scheme if a unit fails to supply or comply with an order. This includes defaults related to specifications, size, quantity, quality, incorrect delivery, non-delivery, short-delivery, or delayed delivery of goods or services.
Is the Security Deposit exempted under the Public Procurement Policy?
Yes, following the issuance of the Public Procurement Order 2012 for MSEs, the Security Deposit requirement has been abolished.
What percentage of procurement is set aside for MSEs owned by SC/ST under the Public Procurement Policy?
Out of the total 20% annual procurement earmarked for MSEs, 4% is specifically reserved for units owned by Scheduled Castes/Scheduled Tribes.
Are all consortium members jointly responsible for penalties or damages, or only the defaulting unit?
Yes, all consortium members are jointly and severally responsible for any penalties or damages.
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