Marketing Facilitation Scheme

Disclaimer….before you read ahead!

The information contained herein is of a general nature and for information purposes only, with the intent of raising awareness around various resources, schemes etc. available for women entrepreneurs in India. It is not intended to address the circumstances of any particular individual or entity. It does not purport to be all-inclusive or necessarily contain all the information that may be relevant for the reader, and may be subject to updation, revision or amendment. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to remain accurate in the future. The reader, therefore, is required to exercise their discretion; and not act on such information without appropriate professional advice after a thorough examination of the particular situation.

Furthermore, we are not a lender and are not authorized by the Reserve Bank of India to act as one. By disseminating the information contained herein, we are not soliciting any borrower or customers for the company or organization mentioned herein nor do we intend to syndicate any capital for the reader of this article.

About this scheme…

Marketing Facilitation Scheme (MFS) (earlier known as Marketing Assistance Scheme)was launched by National Small Industries Corporation (NSIC), a Government of India (GOI) Enterprise, to provide marketing facilitation services to Micro and Small Enterprises (MSEs) for promoting their products & services individually or collectively through a Consortium.

This initiative gained its significance & prominence after GOI’s Public Procurement Policy for MSEs in 2012 which orders Central Government Ministries, Departments and Public Sector Undertakings to procure minimum of 20 per cent of their annual value of goods or services from MSEs.

How is it being implemented?

Under this Scheme, direct marketing facilitation assistance is provided exclusively to,

Existing & New Micro and Small Enterprises (MSEs) registered with NSIC under its Single Point Registration Scheme (SPRS)
MSEs engaging in trading activities without value addition or packing or branding will not be covered under this Scheme

NSIC then connects these Supplier MSEs (individually or collectively through a Consortium) to the following Buyers (mainly Government Bodies) basis the latter’s requirement:

Central Governments & their Departments
PSUs, and other relevant organizations
State / UTs Governments & their Departments
Local Bodies, Public / reputed Private Sector Companies

What’s on offer?

I. Product

Marketing facilitation services by facilitating a deal between Supplier MSEs and Buyers through a streamlined & transparent process for the Buyer in identifying & engaging Supplier MSEs basis Buyer’s enquiry or requirements
- NSIC’s role will be limited to recommending the L1 Bidder (lowest bidder) to the Buyer who will then be responsible for awarding the contract
- NSIC will only proceed for completion of formalities (documentation etc.), after receiving written confirmation from the Buyer regarding the selected MSE Supplier(s) (Contractor) and the agreed contract value
Promoting MSE’s products by circulating details with various Buyers about the product, quality and the price at which the supplies can be made by MSEs
Where MSE has gathered information on Buyer’s requirements in the future, they can approach NSIC to facilitate them under this Scheme as and when such enquiry or requirements are received from Buyer

II. Purpose

For latest list of items reserved for purchase from Supplier MSEs by Buyers, please scroll here towards the end and look for List of 358 Reserved Items
There is another list of items which you can refer here
For more information around this, please contact NSIC via means below

III. Supplier MSEs Type

Proprietorship, Partnership Firm, Limited Liability Partnership (LLP), Private Limited Company, Public Limited Company, Society

IV. Fees & Service Charges

For Registration Under Single Point Registration Scheme (SPRS): ₹3,000 to ₹100,000, plus GST, depending on your turnover and whether one is classified as a Micro or Small Enterprise
- For MSEs owned by SC/ST: ₹100 plus GST\
- For MSEs located in North Eastern Region: ₹3,000 to ₹100,000, plus GST Less 20% concession
- Such registration will need to be renewed every 2 years at 50% of applicable registration charges
Third Party Inspection Charges: ₹5,500 to ₹10,000, plus GST, depending on the empanelled agency. For details, please scroll here towards the end and look for List of Empanelled Agencies along with Inspection Fees
Annual Fee Structure of Empanelment & Renewal under the Scheme: ₹1,000 to ₹5,000, plus GST depending upon MSE’s Monetary Limit as denoted by NSIC
- For procedure for calculation of Monetary Limit, please refer to Point 6 here
- For MSEs owned by SC/ST: Nil
- There will be no fee for the formation of new or renewal of Consortia
Service Charges: 5% (inclusive of GST) of the award to be paid in phases linked to project milestones
- 50% on acceptance of award of contract

- 25% on total execution of award

Balance 25% on receipt of payment

V. Scheme Process

MSE to attain SPRS Registration Certificate
MSE to apply for Empanelment under the Marketing Facilitation Scheme

Inspection of MSE
Fixation of Limit for MSE by NSIC for participation under MFS
- This is the overall limit up to which the unit can quote at any point of time
- This could be equivalent to MSE’s Monetary Limit as suggested above
- For more information around this, please contact NSIC via means below
Receipt of Empanelment Letter by MSE
Basis the enquiring received from Buyers, NSIC will conduct back-to-back tendering or limited tender process as per prescribed guidelines to select prospective Supplier MSEs
NSIC to recommend MSE Suppliers to Buyers specifically adhering to the L1 (lowest price) criterion
Buyer may award the contract based on NSIC’s recommendations to MSE Suppliers
NSIC will only proceed for completion of formalities (documentation etc.), after receiving written confirmation from the Buyer regarding the selected MSE Supplier(s) (Contractor) and the agreed contract value
Buyer will assume full responsibility for all contractual obligations, including quality, acceptance of goods, addressing any disputes, handling liquidated damages (LD), or conducting re-tendering in case of contractor failure
For more details on this, refer here

VI. Turnaround Time

For more information around this, please contact NSIC via means below

Interested? Read ahead to check your eligibility….

I. Is your business an MSE?

II. Does your business have a valid Udyam Registration Certificate?

III. Are you an MSE registered under Single Point Registration Scheme (SPRS)?

IV. Your business is not engaged in manufacture of medicine & drugs except engaged in manufacturing & supply of Ayurvedic, Unani, Sidha and Homeopathic Medicines?

V. Your business is not into wholesale trading, retail trading or that of being a commission agent?

VI. Your business has not been blacklisted by NSIC?

VII. The Proprietor or Partner or Director or Karta of your business has not been convicted for any criminal offence?

If your answers to the questions above are an emphatic YES, you are all set to avail marketing assistance under the NSIC’s Marketing Facilitation Scheme!