Consortia and Tender Marketing Scheme (CTMS) : A Complete Guide for MSEs
Winning a large government tender is hard when you're a small manufacturer competing against companies ten times your size. The Consortia and Tender Marketing Scheme (CTMS), run by the National Small Industries Corporation (NSIC), was built to fix exactly that problem. This guide covers what CTMS is, who qualifies, the documents you'll need, the step-by-step process, the fees involved, and the mistakes that most often get applications delayed or rejected.
Key Requirements, Eligibility, or Criteria
Registered as a Micro or Small Enterprise
Only Micro and Small Enterprises (MSEs) are covered under this scheme — medium and large enterprises are not eligible, regardless of production capability.
NSIC Single Point Registration (SPRS)
The unit must already be registered with NSIC under the Single Point Registration Scheme (SPRS), or must apply for SPRS registration alongside the CTMS application. SPRS is the foundational registration NSIC uses to verify a unit's manufacturing capacity, financial standing, and quality systems.
Manufacturing with Value Addition
The unit must actually manufacture the product it wants to tender for — with genuine value addition, packing, or branding. Units that only trade goods without adding value are explicitly excluded from the scheme.
Factory Inspection
Before the first tender is filed on the unit's behalf, NSIC inspects the factory to confirm production capability and quality standards. Units that haven't passed this inspection can't participate, even if their SPRS paperwork is otherwise complete.
CTMS vs Individual Tender Participation
How Does CTMS Work?
Confirm or Complete SPRS Registration
If the unit isn't already registered under NSIC's Single Point Registration Scheme, this has to be done first (or filed together with the CTMS application).
Submit the CTMS Application
Fill out the prescribed application form (Annexures A and A-1), have it signed by the authorised signatory — the proprietor, partner(s), or director(s) — and submit it with supporting documents to the Senior Branch Manager at the nearest NSIC branch office.
Factory Inspection and Assessment
NSIC's branch office reviews the application and, where needed, conducts a physical inspection of the unit to verify manufacturing capacity and quality.
Monetary Limit and Enlistment
Once approved, NSIC fixes a monetary limit up to which the unit can participate in tenders at any point in time. This limit is set at whichever is higher: 300% of the unit's SPRS monetary limit, or its turnover for the previous financial year. NSIC then issues the enlistment letter.
Consortium Formation and Tender Participation
For large tenders, NSIC groups enlisted units making similar products into a consortium, files the combined bid, and — if the bid is won — distributes the order among consortium members according to each unit's production capacity. NSIC also arranges the EMD and security deposit on the units' behalf, and after the buying department releases payment, deducts its service charges before passing the balance to the MSE or consortium.
Confirm or Complete SPRS Registration
If the unit isn't already registered under NSIC's Single Point Registration Scheme, this has to be done first (or filed together with the CTMS application).
Submit the CTMS Application
Fill out the prescribed application form (Annexures A and A-1), have it signed by the authorised signatory — the proprietor, partner(s), or director(s) — and submit it with supporting documents to the Senior Branch Manager at the nearest NSIC branch office.
Factory Inspection and Assessment
NSIC's branch office reviews the application and, where needed, conducts a physical inspection of the unit to verify manufacturing capacity and quality.
Monetary Limit and Enlistment
Once approved, NSIC fixes a monetary limit up to which the unit can participate in tenders at any point in time. This limit is set at whichever is higher: 300% of the unit's SPRS monetary limit, or its turnover for the previous financial year. NSIC then issues the enlistment letter.
Consortium Formation and Tender Participation
For large tenders, NSIC groups enlisted units making similar products into a consortium, files the combined bid, and — if the bid is won — distributes the order among consortium members according to each unit's production capacity. NSIC also arranges the EMD and security deposit on the units' behalf, and after the buying department releases payment, deducts its service charges before passing the balance to the MSE or consortium.
Benefits of CTMS
Access to Large-Value Tenders
By pooling capacity through a consortium, MSEs can bid for and fulfil orders far larger than any single unit could handle. This opens up government and PSU contracts that would otherwise be out of reach.
EMD and Security Deposit Support
NSIC arranges the Earnest Money Deposit and, where applicable, the security deposit on a back-to-back basis for enlisted units. That means member firms aren't forced to lock up their own working capital just to be eligible to bid.
Lower Service Charges for Consortium Participation
Units bidding through a consortium generally pay lower NSIC service charges than units bidding individually, and micro enterprises get a further reduction on top of that. Over multiple tenders, this adds up to a meaningful cost saving.
Simplified Legal Process
The legal paperwork needed to form and operate a consortium — individual agreements, the consortium agreement itself, board resolutions, and powers of attorney — has been standardised and simplified, so smaller firms without in-house legal teams can still participate.
Support for Public Procurement Policy Goals
Because CTMS is one of the recognised channels for meeting mandated MSE procurement targets under government policy, consortia formed through NSIC often get preferential consideration from buying departments and PSUs looking to fulfil their procurement quotas.
Documents Required
Application Form
Duly filled and signed application form in the prescribed format (Annexures A and A-1), signed by the proprietor, partner(s), or director(s).
Identity and Ownership Proof
Passport-size photographs of the proprietor(s), partner(s), directors, or office bearers, along with residential proof.
Registration Certificate
Self-attested copy of the unit's GST registration certificate (or equivalent business registration proof, such as Udyam/Udyog Aadhaar as applicable).
Legal Authorisation Documents
Power of Attorney (Annexure B), Board Resolution (Annexure C), or Society Resolution (Annexure H), executed on stamp paper as required under the local Act, authorising the person who will deal with NSIC on the firm's behalf.
Also required: bank-attested specimen signatures of the authorised person(s).
FAQs
What is the Consortia and Tender Marketing Scheme?
The Consortia and Tender Marketing Scheme is a government initiative under the Ministry of Micro, Small and Medium Enterprises (MSME), implemented by NSIC. It allows Micro and Small Enterprises (MSEs) to market their products and participate in tenders — either individually or by joining a "consortium" of similar manufacturers — so they can compete for bulk government and PSU orders that a single small unit couldn't handle alone.
The scheme was reviewed and given its current name in 2011, though NSIC's tender-facilitation role for small industries goes back further. In practice, it works like this: NSIC groups MSEs that make similar products into a consortium, files a combined bid on their behalf for a large tender, and if the bid succeeds, distributes the order among member units according to their production capacity.
It's commonly used by manufacturers supplying items like uniforms, furniture, stationery, electrical components, and similar bulk-procurement goods to government departments, PSUs, and other public buyers.
Why is CTMS Important?
Government procurement in India runs on volume. A single tender might ask for quantities that one small unit simply cannot produce or deliver within the timeline — even if the unit is perfectly capable of making the product itself.
CTMS matters because it addresses three real barriers MSEs face:
Scale: Pooling production capacity across several units lets a consortium bid for orders no individual MSE could fulfil alone.
Working capital lock-up: NSIC arranges the Earnest Money Deposit (EMD) and security deposit on a back-to-back basis, so member units don't have to tie up their own cash to bid.
Market access: The Public Procurement Policy for MSEs (notified by the Ministry of MSME under Gazette Notification S.O. 581(E), dated 23rd March 2012) requires central government departments and PSUs to source a minimum share of their annual procurement from MSEs — including through NSIC-formed consortia. CTMS is one of the direct channels through which that policy gets implemented on the ground.
For a small manufacturer, this can mean the difference between only ever selling to local buyers and actually supplying a central government department or PSU.
Costs, Fees, or Charges
CTMS involves an annual enlistment/renewal fee (charged when a unit registers or renews under the scheme) plus service charges that apply when a tender is actually won.
Service charges are calculated as a percentage of the bill value before GST, and the exact rate depends on the tender value and whether the unit is bidding individually or as part of a consortium — consortium participants typically pay a lower percentage than individual bidders. Micro enterprises get an additional reduction on top of the standard rate. If NSIC also arranges the EMD or security deposit for the unit, an additional service charge applies for that facility.
Because these rates are revised periodically by NSIC, always confirm the current fee structure with your nearest NSIC branch office or the official NSIC website before budgeting for an application.
Conclusion
The Consortia and Tender Marketing Scheme gives small manufacturers a realistic path into government and PSU procurement — a market that's normally out of reach for individual small units competing on their own. The trade-off is that eligibility is genuinely checked: you need valid SPRS registration, real manufacturing capacity, and a factory that passes inspection.
If your business fits that profile, the most useful next step is to get your SPRS registration in order first, then approach your nearest NSIC branch office to start the CTMS enlistment process and ask about current fees for your product category.
Disclaimer
StartupFlora provides consultancy services only. We are not affiliated with any government department. All scheme benefits and approvals are at the sole discretion of the respective government authority and implementing agency.