Registering For Nsic Government Purchase Scheme

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 of benefits for SSI and MSME units registered under the NSIC Single Point Registration Scheme. The scheme provides the following benefits to help SSI or MSME units increase their share of the 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 a price band of L1+15 per cent shall also be allowed to supply a portion upto 20% of the requirement by bringing down their price to L1 Price where L1 is non-MSEs.
All Government Departments are required to purchase a minimum of 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.

Click here to download the list of 358 items reserved for purchase from 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, submit the application online on the NSIC registration portal or by submitting the application form to the nearest NSIC office.

On submission of the NSIC registration with the NSIC Office, forward a duplicate copy of the registration application 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.

A 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.

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Frequently Asked Questions

Common questions about NSIC Government Purchase Registration for MSMEs.

The NSIC Government Purchase Scheme, also known as the Single Point Registration Scheme (SPRS), was launched in 1955 to enable Micro & Small Enterprises (MSEs) to effectively offer their products or services to the Government and increase the share of Government purchases from small businesses.

Micro & Small Enterprises (MSMEs) which are having SSI or MSME registration are eligible for registration with NSIC under its Single Point Registration Scheme (SPRS).

Some of the key benefits include issuing of tender sets free of cost, exemption from payment of Earnest Money Deposit (EMD), and allowing MSEs to supply up to 20% of the requirement by matching the L1 price. Additionally, the Government is required to purchase a minimum of 20% of its annual procurement from SSI or MSME units.

An MSME can apply for NSIC registration by submitting the application online on the NSIC registration portal or by submitting the application form to the nearest NSIC office.

After submitting the application to NSIC, the MSME should forward a duplicate copy to the concerned MSME Directorate for requesting a technical inspection of the business. Based on the inspection report, NSIC will issue the registration certificate enrolling the MSME unit in the Government Purchase program.

A fee of approximately Rs. 20,000 to Rs. 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.

NSIC registration allows MSMEs to receive tender sets free of cost, exempts them from paying Earnest Money Deposit (EMD), and enables them to supply up to 20% of the requirement by matching the L1 price.

Yes, 358 items are reserved for exclusive purchase from the SSI or MSME businesses by the Government.

Out of the annual requirement of 20% procurement from SSI or MSMEs, 4% is earmarked for SSI or MSME units owned by Scheduled Caste or Scheduled Tribes.

Yes, tender participating MSEs quoting price within a price band of L1+15% shall also be allowed to supply a portion up to 20% of the requirement by bringing down their price to the L1 price, where L1 is the non-MSME unit.