Consortia and Tender Marketing Scheme

Consortia and Tender Marketing Scheme helps micro and small enterprises win large government or private orders by forming business groups that bid collectively. Managed by the National Small Industries Corporation (NSIC) under Ministry of Micro, Small and Medium Enterprises, this scheme supports registered small units to improve their market reach, gain a competitive edge and get structured support while taking part in tenders. In 2024 the Corporation reviewed the scheme and brought it under a reformed framework called Marketing Facilitation Scheme, so the updated terms below are the current rules for 2026-27.

Consortia and Tender Marketing Scheme - Introduction

Small scale businesses often find it hard to compete for large procurement orders on their own. Consortia and Tender Marketing Scheme solves this problem by letting similar manufacturing units come together as a consortium and bid for bigger market opportunities. Through this arrangement member units can take part in complex government and private tenders that would be difficult for a single unit to handle.

The scheme is run by the National Small Industries Corporation under the Ministry of Micro, Small and Medium Enterprises. Following a review in 2024, NSIC renamed this effort as Marketing Facilitation Scheme, but the core idea stays the same. NSIC acts as a facilitator that recommends the lowest bidder to the buying department under the guidelines of the Public Procurement Order 2012, giving micro and small enterprises a fair chance to supply goods and services to the government.

Promotion of the products of micro and small enterprises is a main aim of the Corporation. NSIC offers facilitation services to central and state governments, public sector units, local bodies and reputed private firms. The scheme covers units registered with NSIC under its Single Point Registration Scheme, and also units that apply for this registration at the same time, provided their factory is inspected before they join the scheme.

Trading activities that do not involve value addition, packing or branding are not covered under these benefits. NSIC's role stays limited to recommending the L1 (lowest) bidder to the buyer, and the buyer remains responsible for awarding the contract.

Key Information

Benefits

By joining this scheme, units get a professional edge in the market and can register to bid on both government and private tenders. This opens doors to larger contracts that a single small unit might not manage alone. NSIC also helps with the paperwork, including simplified agreements, board resolutions and power of attorney forms.

The Corporation provides complete support for forming a consortium, building capacity and sharing bulk orders among members based on each unit's production capacity. In addition, NSIC facilitates Earnest Money Deposits and security deposits on a back-to-back basis. Under the revised framework the facilitation fee charged by NSIC is 5% (inclusive of GST) of the award value, paid in phases linked to project milestones.

Financially, the enlistment fee depends on the monetary limit under SPRS registration. Units owned by SC/ST entrepreneurs are exempt from the enlistment fee, and there is no fee for forming or renewing a consortium.

This scheme also follows the Public Procurement Policy of the Government of India. Under this policy, central ministries and public sector units aim to buy at least 20% of their total annual requirements from micro and small enterprises, and 4% of this is reserved for MSEs owned by SC/ST entrepreneurs. This improves the chances of small units getting government orders.

Eligibility

To benefit from this scheme, a unit should be a micro or small enterprise registered with NSIC under the Single Point Registration Scheme. If the unit is not yet registered, it can apply for SPRS at the same time. A mandatory inspection of the factory or production unit is required to confirm the actual infrastructure before the unit can take part in any tender under this program.

The scheme is meant for units that add value through production. Units engaged purely in trading without value addition, packing or branding are not eligible for these benefits.

Apply for the Scheme

Interested units can approach NSIC through the official portal. The marketing facilitation online enquiry form is available on the NSIC customer portal, and detailed rules and annexures can be downloaded from the official NSIC website.

STEP 1 - Go to the official NSIC website at nsic.co.in and open the Marketing Facilitation Scheme page to read the current rules for 2026-27.

STEP 2 - Download the application form from the annexures document and fill it in the prescribed format. The form should be signed by the authorized signatory, that is the proprietor, partner or director of the firm, company or society.

STEP 3 - Attach the required documents mentioned in the application form, including the G.P. registration certificate, address proof and authorization documents. The same documents work for participating in any tender or forming or joining a consortium.

STEP 4 - Submit the completed application to the nearest or regional NSIC branch office, or use the online enquiry form on the NSIC customer portal. Keep the enlistment fee ready, and remember that units owned by SC/ST entrepreneurs do not pay this fee.

Documents

Keep the following documents ready while applying for the scheme:

• Passport size photograph of each proprietor, partner or director along with their address proof.
• Self-attested copy of the G.P. registration certificate.
• Official authorization documents such as board resolution or power of attorney signed by the competent authority.
• Bank-attested specimen signatures of the authorized representatives and copies of recent supply orders as a record of business activity.
• Payment details for the enlistment fee applicable to the monetary limit under SPRS registration.

Application Fee

The annual or renewal fee under the scheme depends on the monetary limit assigned under SPRS registration. Units with a limit up to rupees 100 lakh pay rupees 1000 plus GST. Units with a limit above rupees 100 lakh and up to rupees 500 lakh pay rupees 2500 plus GST, and units with a limit above rupees 500 lakh pay rupees 5000 plus GST.

Units owned by SC/ST entrepreneurs are exempt from the enlistment fee. There is no separate fee for forming or renewing a consortium. However, each consortium member must pay the applicable enlistment fee at the time of taking part in any enquiry.

NSIC charges a facilitation fee of 5% inclusive of GST on the award value. This amount is received in phases: 50% on acceptance of the award of contract, followed by 25% after total execution of the award and the remaining 25% after receipt of payment.

References

For deeper insights and official updates, refer to the following resources:

• Marketing Facilitation Scheme (MFS) Official Page
• Marketing Facilitation Scheme Detailed Rules
• Scheme Annexures and Application Form
• Scheme Details on MSME Ministry Website

FAQ's

What is Consortia and Tender Marketing Scheme?

This scheme helps small businesses join together and bid for large government or private orders that they might not be able to handle on their own.

Is the scheme still running in 2026?

Yes, the scheme is still running. NSIC reviewed it in 2024 and now runs it under the name Marketing Facilitation Scheme with updated fees and rules.

What is the minimum size of a consortium?

You need a minimum of two micro or small enterprises to form a consortium.

Is pre-inspection of the unit required?

Yes, inspection is required to check that the unit has the actual infrastructure to produce the goods or services asked in the tender.

What is the enlistment fee?

The fee depends on the monetary limit under SPRS registration and ranges from rupees 1000 to rupees 5000 plus GST. Units owned by SC/ST entrepreneurs are exempt.

How much does NSIC charge as facilitation commission?

NSIC charges 5% inclusive of GST of the award value, paid in phases linked to project milestones.

Is there a fee for forming a consortium?

No, there is no fee for forming or renewing a consortium, but each member pays the enlistment fee when taking part in an enquiry.

Are medium enterprises eligible for these benefits?

No, this scheme is strictly for micro and small enterprises registered or applying under the Single Point Registration Scheme.

What is the price preference available to MSEs?

If an MSE quotes a price within 15% of the L1 lowest price, it can be allowed to supply up to 20% of the order by matching the L1 price.

How many items are reserved for procurement from MSEs?

Several items are reserved for procurement from micro and small enterprises under the Public Procurement Order, and the list is updated by the government from time to time.