Key Takeaways
- CTMS only covers MSEs already registered, or in the process of registering, under NSIC's Single Point Registration Scheme (SPRS). Pure trading units without value addition are not eligible.
- A valid consortium needs a minimum of two MSEs, and NSIC distributes any order the consortium wins among members based on their assessed production capacity.
- NSIC often arranges the EMD and security deposit on behalf of participating units instead of blocking their own funds, and consortium members pay a lower 2% service charge against 2.5% for individual participants.
- Under the MSE price preference rule, a unit quoting up to 15% above the L1 (lowest) price from a non-MSE bidder can still supply up to 20% of the order by matching the L1 price.
- The annual enlistment fee is tiered by SPRS monetary limit, from ₹1,000 to ₹5,000 plus applicable tax, and units owned by SC/ST entrepreneurs are exempt from the enlistment fee entirely.
What CTMS actually does
NSIC, the National Small Industries Corporation, is a Government of India enterprise under the Ministry of MSME, set up in 1955. It reviewed and reformalised its consortium-based marketing support in 2011 into the Consortia and Tender Marketing Scheme. The scheme exists because a single micro or small unit is often too small to bid for a large government or PSU order on its own. CTMS lets NSIC group similar manufacturers into a consortium, bid for tenders on their behalf, and split the resulting order among members according to each unit's real capacity.
Eligibility: who can actually use CTMS
- The MSE must be registered under NSIC's Single Point Registration Scheme (SPRS), or applying for SPRS with its factory inspected before the tender is filed.
- Units engaged purely in trading, without value addition, packing or branding, are not eligible.
- A valid consortium requires a minimum of two MSEs manufacturing similar products.
- SPRS itself requires a valid Udyam Registration and covers manufacturing and services units. Traders cannot register under SPRS either.
What benefits a unit actually gets under CTMS?
| Benefit | What it means in practice |
|---|---|
| Bulk order access | Bid for and execute large tenders that exceed one unit's individual capacity, as part of a consortium |
| EMD and security deposit relief | NSIC often arranges these on the unit's behalf instead of blocking the MSE's own working capital |
| Price preference | A unit within 15% of the L1 (lowest, non-MSE) price can still supply up to 20% of the order by matching the L1 price |
| Lower service charge | Consortium members pay 2% versus 2.5% for individual tender participants, with a further 0.5% reduction for micro units |
| Fair order distribution | Orders won by the consortium are split among member units based on their assessed production capacity |
| Credit facilitation | NSIC facilitates credit arrangements for supplies made against the tender |
Fees: enlistment and service charges
| Category | Annual or renewal enlistment fee |
|---|---|
| SPRS monetary limit up to ₹100 lakh | ₹1,000 plus applicable tax |
| SPRS monetary limit above ₹100 lakh up to ₹500 lakh | ₹2,500 plus applicable tax |
| SPRS monetary limit above ₹500 lakh | ₹5,000 plus applicable tax |
| Units owned by SC/ST entrepreneurs | Exempt from enlistment fee |
| Consortia formation or renewal itself | No separate fee; individual members still pay their own enlistment fee |
Service charges are calculated on the tender's billed value, before GST: 2.5% for individual participants and 2% for consortium members. Micro units get a further 0.5% reduction on whichever rate applies. If NSIC arranges the EMD or security deposit, an additional 1% service charge applies, and a higher rate can be levied case by case where NSIC has to join a pre-dispatch inspection team.
Documents required
- Application form in the prescribed format, Annexure A and A-1, signed by the authorised signatory
- Passport-size photographs of proprietors, partners, directors or office bearers, with residential proof
- Self-attested copy of the SPRS registration certificate
- Power of Attorney, Board Resolution, or Society Resolution, executed on stamp paper, authorising the person dealing with NSIC
- Bank-attested specimen signatures of the authorised persons
- Copies of recent supply orders executed by the unit
- Demand draft or pay order for the enlistment fee, or proof of SC/ST exemption where applicable
How to apply for CTMS, step by step
- Download and fill the application form in the prescribed Annexure A and A-1 format.
- Gather supporting documents: photographs with residential proof, the SPRS registration certificate, and copies of recent supply orders.
- Execute the legal authorisation, a Power of Attorney, Board Resolution, or Society Resolution, on stamp paper as required under the relevant local Act.
- Submit the signed application with the enlistment fee and all documents to the Senior Branch Manager at your nearest NSIC branch office.
- NSIC examines the application, inspects the unit where needed, fixes the monetary limit for tender participation, and issues the Enlistment Letter.
What happens after enlistment
The monetary limit NSIC fixes is valid for one year and comes up for mandatory annual review and renewal, so it can move up or down depending on the unit's current financial standing. Where NSIC itself submits a security deposit or performance bank guarantee on a unit's behalf, participating MSEs are expected to give a back-to-back bank guarantee or deposit 100% of that value for as long as NSIC's liability continues. If a consortium member defaults, through non-delivery or defective supply, NSIC can revoke the enlistment certificate to protect the scheme's credibility with government buyers.
How CTMS connects to other MSE procurement support
| Scheme | How it connects to CTMS |
|---|---|
| Single Point Registration Scheme (SPRS) | The mandatory prerequisite registration for CTMS enlistment |
| Public Procurement Policy for MSEs, 2012 | Sets the 25% annual government procurement target from MSEs, 4% for SC/ST-owned units and 3% for women-owned units, that CTMS helps units actually capture |
| Bill Discounting Scheme | Gives MSEs working capital against supplies made under tenders, useful once a CTMS-linked order is being executed |
Frequently Asked Questions
What is the minimum number of units required to form a consortium under CTMS?
A minimum of two Micro or Small Enterprises manufacturing similar products.
Do I need NSIC registration before applying for CTMS?
Yes, CTMS only covers MSEs registered, or applying, under NSIC's Single Point Registration Scheme. It is not a standalone registration.
Are trading businesses eligible for CTMS?
No, units engaged purely in trading without value addition, packing or branding are excluded from both SPRS and CTMS.
How much lower are service charges for consortium members?
Consortium members pay a 2% service charge on the tender value versus 2.5% for individual participants, with a further 0.5% reduction available to micro units.
Is the enlistment fee the same for every unit?
No, it is tiered by the unit's SPRS monetary limit, ranging from ₹1,000 to ₹5,000 plus applicable tax, and units owned by SC/ST entrepreneurs are exempt entirely.
What happens if a consortium member fails to deliver?
NSIC can revoke the enlistment certificate for that unit to protect the scheme's credibility with government and PSU buyers.
How long does the monetary limit under CTMS stay valid?
One year, after which it goes through mandatory annual review and renewal based on the unit's current financial standing.
Ready to move forward?
Want to get your MSE registered under NSIC's Single Point Registration Scheme and enlisted for CTMS, or need help forming a compliant consortium agreement before your next tender? Book a free consultation with Growthora and we will handle the registration, documentation and enlistment process end to end.
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