Consortia & Tender Marketing Scheme

Small businesses often aren’t able to take up large government contracts due to limited capacity to handle bulk orders. The Consortia and Tender Marketing Scheme, formalised after a 2011 review, enables MSEs to market their goods collectively. Managed by the National Small Industries Corporation (NSIC), it allows multiple units to form a consortium and bid for high-value tenders as a single, powerful entity. 

This approach is highly relevant in 2025, with MSE procurement via the Government e-Marketplace (GeM) portal reaching ₹7.44 Lakh Crore, accounting for 44.8% of public buying. The scheme removes size-related barriers for small manufacturers in government procurement.

The features and benefits of the Consortia & Tender Marketing Scheme include:

• Facilitates bulk orders: Enables MSEs to participate in tenders on behalf of a 'consortium' to secure and execute orders in bulk quantities that exceed individual capacities.

• Security deposit exemption: Participating units are often exempted from paying security deposits. If a deposit is mandatory, NSIC pays the Earnest Money Deposit (EMD) and the required security amount on their behalf, ensuring that the funds of these units aren’t blocked.
• Capacity building: Encourages the formation of consortia among units manufacturing similar products, allowing them to pool their production capacities.
• Price preference: If a Micro or Small Enterprise quotes a price that is up to 15% higher than the lowest quoted price (L1) offered by a non-MSE, it can still supply up to 20% of the total order by agreeing to match the L1 price.
• Reduced service charges: Consortium members benefit from a 0.5% reduction in service charges compared to individual units participating in tenders.
• Fair order distribution: Orders secured by the consortium are distributed amongst the units based on their assessed capacities.
• Credit facilitation: The scheme facilitates credit for supplies made by the consortium members.

To qualify for the benefits under this scheme, applicants must meet specific registration and operational standards set by the NSIC.

• Micro and Small Enterprises (MSEs) must be registered with NSIC under the Single Point Registration Scheme (SPRS)

• MSEs applying for SPRS registration are eligible if their factory is inspected before the tender filing

• Units engaging in trading activities without value addition, packing, or branding are not eligible

• A valid consortium under this scheme must consist of a minimum of two MSEs

The following documents are required for application:

• Application form (Annexure A and A-1) duly signed by the authorised signatory

• Passport size photographs of Proprietors/Partners/Directors/Office bearers with residential proof

• Self-attested copy of G.P. Registration Certificate

• Power of Attorney, Board Resolution, or Society Resolution authorising the executive to deal with NSIC

• Bank attested specimen signatures of authorised persons

• Copies of recent supply orders

• Demand draft or pay order towards enlistment fee, or proof of SC/ST exemption status

MSEs can apply for the scheme by following the prescribed procedure for document submission and verification at their nearest NSIC branch.

1. Download application: The applicant must fill out the application form in the prescribed format Annexures A and A-1 available in the scheme guidelines.
2. Prepare documentation: Enclose all necessary documents, including passport-size photographs of the authorized signatories and a self-attested copy of the G.P. Registration Certificate.
3. Legal authorisation: Execute the Power of Attorney (Annexure B), Board Resolution (Annexure C), or Society Resolution (Annexure H) on stamp paper as per the local Act to authorise the executive to deal with NSIC.
4. Submission: Submit the duly signed application, along with the required enlistment fee and supporting documents, to the Senior Branch Manager at the nearest NSIC Branch Office.
5. Assessment & approval: The branch office will examine the application, conduct a unit inspection if necessary, and fix the monetary limit for tender participation before issuing the Enlistment Letter.

The Consortia and Tender Marketing Scheme empowers MSEs to secure high-value contracts by pooling resources. However, executing these bulk orders often requires extra capital. To ensure your business is financially ready to scale, you can apply for business loan solutions on Bajaj Markets. Access instant funding and competitive rates from top lenders to successfully deliver on your consortium commitments.