Consortia & Tender Marketing

Promotion of the product of Micro and Small Entrepreneurs is one of the major objectives of the Corporation. In the present competitive scenario a need has been felt to facilitate Micro and Small Enterprises to market their goods / services individually or collectively through ‘Consortium’. Accordingly, the scheme for promoting the products of the MSEs has been reviewed in 2011 & named as “Consortia and Tender Marketing Scheme”.

The special features of the scheme:-

  1. The scheme will cover Micro & Small Enterprises registered with NSIC under its Single Point Registration Scheme (SPRS). It would also cover Micro & Small Enterprises who apply to get themselves registered with NSIC under the SPRS along with all required documents in terms of the scheme and their factory is inspected before filing of tender in terms of the Tender Marketing Scheme.
    The scheme shall not cover unit(s) engaging in ‘trading activities’ without value addition/packing/ branding.
  2. The scheme also covers the method of selection of the units for participation in the open tenders and single tenders on nomination basis.
  3. The scheme takes cares of providing EMD and security deposit on back to back basis.
  4. The scheme inter alia includes the procedures for formation of Consortium, Capacity Building of MSEs by formation of consortia of the units manufacturing similar products, participation in tenders on behalf of units in a ‘consortia’ to secure orders in ‘bulk’ quantities, distribution of orders amongst units in a ‘consortia’ as per their capacities, facilitate the ‘consortia’ members in meeting their raw materials requirements & facilitating ‘Credit’ for the supplies made.
  5. To accommodate provisions of this scheme, the legal document such as individual agreement by the units, agreement to be executed by the consortium, board resolution, power of attorney and other related document have been revised and simplified.
  6. For facilitating promotion and development of Micro & Small Enterprises, the Government of India, Ministry of MSME vide Gazette Notification No. S.O. 581(E) dated 23rd March, 2012 has circulated the Public Procurement Order 2012 for MSME. In the above Public Procurement Order, the Govt. of India has mentioned that that “Annual goal of procurement also include sub-contracts to Micro and Small Enterprises by large enterprises and consortia of Micro and Small Enterprises formed by National Small Industries Corporation”.
  7. NSIC formed Consortia of Micro & Small Enterprises under its Consortia & Tender Marketing Scheme and is supplying the required stores / items and rendering the services as required by the Govt. Depts. / PSUs. NSIC offices continuously monitor the consortia and form new ones depending upon the requirements.

APPLICATION FORM:

The application form, in the prescribed format (Annexure – A and A-1) for enlistment under the Tender Marketing Scheme is to be submitted by the applicant Micro & Small Enterprise (MSE), duly signed by the authorized signatory i.e. Proprietor / Partner(s) / Director(s) of the firm / company / society along with the documents mentioned in the application form. These documents would also suffice wherever the enlisted unit wants to participate in the tender and /or form/join a consortium.

FIXATION OF LIMIT FOR TENDER PARTICIPATION:

  1. In respect of enlisted units willing to participate in tender through NSIC, the branch office shall fix an overall limit up to which the tender(s) can be participated on behalf of such unit at any point of time. The limit shall be the higher of:
    • 300% of the monetary limit fixed for the unit under the Single Point Registration Scheme, or
    • Last year’s turnover, (The ‘Last year’s turnover’ should be turnover for a financial year and the same may either be as per the last audited accounts or as per the provisional results for a financial year, duly certified by the Chartered Accountants).
    • Where during the financial year in progress the unit has recorded an appreciable hike in its turnover (duly certified by the Chartered Accountant) with which it exceeds its last year’s turnover or the overall limit as mentioned at (i) above, benefit shall be extended to such units and their overall limit may be fixed at the highest value amongst i, ii, or the value of turnover during the financial year in progress.
  2. While fixing the overall limit the operating and installed capacity of the unit may also be considered.
  3. The fixation of the limit shall be done by the committee consisting of the Branch Head, Accounts Head and Business Head.
  4. The limit so fixed shall remain valid for a year and is subject to review/ renewal annually.
  5. While deciding the overall limit to be fixed for units operating as a consortium, the limits fixed in respect of individual unit as per procedure mentioned above, shall be clubbed. The limit so fixed for a consortium shall remain valid for a year and is subject to review/ renewal annually.
  6. In case a consortium gets expanded (by the additions of a unit / units) and / or shrunk (by the withdrawal of a unit / units) then:
  7. On expansion of the consortium, the overall limit shall be enhanced after working out the limit in respect of the unit / units added by fixing their limits as per the procedure mentioned above.
  8. On withdrawal of unit / units from a consortium, the overall limit shall stand reduced equivalent to the limit fixed in respect of such units.
  9. However, the limit of the unit shall get vacated to the extent of the order already executed. (For example a unit having a limit of Rs. 15 crore and an order in execution for Rs. 10 crore out of which it has already executed order worth of Rs. 3 crore, the balance limit available for tender participation at this point shall be Rs. 8 crore).

After completion of the above, in respect of units found fit for enlistment under the scheme, an Enlistment Letter shall be issued by the branch.

  1. Annual Fee Structure of Enlistment & Renewal under Consortia & Tender Marketing Scheme
S.No. Category Annual / Renewal Fee
1. If Monetary Limit under SPRS is up to Rs. 100 lacs Rs. 1,000 + GST
2. If Monetary Limit under SPRS is more Rs. 100 lacs and up to Rs. 500 lacs Rs. 2,500 + GST
3. If Monetary Limit under SPRS is above Rs. 500 lacs Rs. 5,000 + GST
4. Units owned by SC/ST entrepreneurs are exempted from the enlistment fee
5. There will be no fee for the formation of new / renewal of Consortia. However, while at the time of participation in tender by consortia members, enlistment fee mentioned above will be applicable.
  1. Service charges under consortia & tender marketing scheme
S.No. PARTICULARS Rate (%)
1. When EMD and/ or security deposit are arranged by the unit or when EMD/SD are exempted by the buyer department. 1.5% of the Bill value in case of individual units, excluding duties, taxes and charges and 1% of the Bill value in case of consortium, excluding duties, taxes and other charges
2. When EMD and/or security deposit are arranged by NSIC. 2% of the Bill value in case of individual excluding and other 1.5% of the Bill value in case of excluding and other charges.

Note:
Where the NSIC is required to participate in pre-dispatch inspection team along with the buyer department or other agency, a higher rate of service charge can be levied on case to case basis.

Validity of Consortia Agreement

Consortium agreement entered into between the Corporation and Consortium shall be valid till officially liquidated by all members and the intimation being served on the respective branch that they (Consortium) do not want to continue as a Consortia members. However, in case of inclusion of new member/s or member/s leaving the consortia of change in Constitution of any member , fresh agreement may be obtained. In order to ascertain the change in the Constitution or addition/deletion of the members, a declaration to the effects to be taken from consortia members that their consortium is alive and there is no change.