The Government of India is the single largest purchase of a variety of goods and services in India through tenders and other modes. To enable SSI and MSME units to effectively offer their products or services to the Government and to increase the share of Government purchases from small businesses, the NSIC Government Stores Purchase Program was launched in 1955. The program provides a mechanism for NSIC to register Micro & Small Enterprises under a Single Point Registration Scheme (SPRS) for participation in Government Purchases. In this article, we look at the procedure for obtaining Single Point Registration and selling to the Government.
Single Point Registration Scheme
The “Public Procurement Policy for Micro & Small Enterprises (MSEs) Order 2012” provides for a number fo benefits for SSI and MSME units registered under the NSIC Single Point Registration Scheme. The following benefits are provided under the scheme to help SSI or MSME units increase their share of sale to the Government of India:
- Issue of the Tender Sets free of cost;
- Exemption from payment of Earnest Money Deposit (EMD);
- Tender participating MSEs quoting price within price band of L1+15 per cent shall also be allowed to supply a portion upto 20% of requirement by bringing down their price to L1 Price where L1 is non MSEs.
- All Government Departments are required to purchase a minimum 20 per cent of the total annual purchases of the products or services from SSI or MSME units. Out of annual requirement of 20% procurement from SSI or MSMEs, 4% is earmarked for SSI or MSME units owned by Schedule Caste or Schedule Tribes
- 358 items purchased by the Government are reserved for exclusive purchase from the SSI or MSME businesses.
Procedure for obtaining NSIC Registration
Micro & Small Enterprises (MSMEs) which are having SSI or MSME registration are eligible for registration with NSIC under its Single Point Registration Scheme (SPRS). To apply for the NSIC registration, the application can be submitted online on NSIC registration portal or by submitting the application form to the nearest NSIC office.
On submission of the NSIC registration with the NSIC Office, a duplicate copy of the registration application must be forwarded to the concerned MSME Directorate for requesting technical inspection of the business. Based on the inspection report provided by the MSME Directorate, NSIC will issue the registration certificate enrolling the SSI or MSME unit in the Government Purchase program.
Fee of about 20,000 to 30,000 is payable by the small business to NSIC and the MSME Directorate for the processing and issuing of the Government Purchase Registration Certificate.