Central government buyers have policies meant to help small suppliers - but the benefits only apply if you claim them correctly.
Public Procurement Policy for MSEs
For micro and small enterprises (MSEs) registered on Udyam (or other notified registrations):
- Tender fee and EMD exemption - generally, for goods and services the MSE is registered for.
- Purchase preference - an MSE quoting within L1 + 15% can be allowed to match the L1 price for a share of the order (when L1 isn't an MSE).
- Annual target - ministries and CPSEs aim to buy a set share of their annual procurement from MSEs (with sub-targets for SC/ST and women-owned MSEs).
How to claim: attach the Udyam certificate, make sure the NIC codes / categories cover what the tender is buying, and quote the clause. If the tender is silent or unclear, ask in a pre-bid query.
Startups
DPIIT-recognised startups can be exempted from prior turnover and prior experience criteria in many central tenders, subject to meeting quality and technical specifications. Not all tenders allow it - check the eligibility clause.
Make in India
Under the Public Procurement (Preference to Make in India) order, Class-I local suppliers (higher local content) get purchase preference, and Class-II suppliers can participate; a local content certificate (often from a statutory auditor for larger values) is required.
Bid Security Declaration
Many tenders accept a Bid Security Declaration instead of an EMD - a signed undertaking that you'll be barred from bidding for a period if you withdraw or fail to sign the contract.
On GeM
GeM shows MSE and startup status on your seller profile and applies preferences in bids where the buyer has enabled them. Keep your Udyam details and categories updated on GeM.