Public procurement refers to the process by which government departments or agencies purchase goods, services, or works from the private sector (private enterprises, MSME’s, SHG run enterprises, various other micro, macro and nano enterprises) in a fair and open way, giving these sectors a chance to sell their goods, services to government departments. This includes purchases from almost every sector such as farm produce, textile, handicrafts, medical equipment to large-scale construction projects, and professional services. India’s public procurement accounts for between 20% and 22% of GDP and this figure is only set to increase given the government’s focus on increasing private sector participation in the infrastructure and social development sectors. The Department of Expenditure (DoE) under the Ministry of Finance anchors public procurement policy, while the Government e-Marketplace (GeM) serves as the key digital platform for procurement.

<ul> <li>Supplying to the Government ensures regular and bulk orders resulting in consistent income.</li> <li>Public procurement often pays fair, pre-approved rates rather than bargaining at local markets, hence proper price realization.</li> <li>Participating in public procurement, prepares SHG units to formalize and grow their enterprises, register as producer groups (PGs), farmer producer organizations (FPOs), and cooperatives, thereby obtaining legal compliances such as UDHYAM registration, FSSAI etc.</li> <li>Bulk government orders encourage SHGs to buy raw materials at greater volume, leading to a reduction in the cost of production and achieving economies of scale.</li> <li>Once SHGs have experienced fulfilling government orders, they are seen as credible suppliers, making it easier to explore and enter into new market avenues. They can also link to other institutional buyers (schools, hospitals, corporates) who trust vetted vendors.</li> <li>Supplying to government buyers encourages SHGs to adopt better production standards, packaging, and branding - enhancing product/service quality overall.</li> </ul>

<p>To register a SHG/FPO/Cooperative as a vendor for participation in government tenders, the SHG needs to complete online registration on the GeM portal, gather necessary documents, and follow a verification process to begin bidding for public procurement contracts. Registration Steps on Government e-Marketplace (GeM)</p> <ul> <li>Visit the GeM portal (<a href="https://gem.gov.in">https://gem.gov.in</a>) and choose the &quot;Seller Registration&quot; option.</li> <li>Fill in the required details including SHG/FPO/Cooperative name, address, authorized signatory, contact information, bank account details, and GST number if available.</li> <li>Upload digital documents, such as proof of incorporation/registration, MSME certificate (if applicable), PAN, GST details, financial documents, and other organizational details.</li> <li>You must have an authorized digital signature certificate (DSC) to complete registration and sign digital tenders.</li> <li>Once registration and verification are approved, SHGs can list goods/services and participate in relevant government tenders.</li> </ul> <p>Key Points and Benefits to consider:</p> <ul> <li>GeM registration is free and open to SHGs, FPOs, and cooperatives, offering special features and benefits for women-led and urban SHGs under inclusive procurement policies to make participation easier and more accessible.</li> <li>SHGs may also be permitted for direct procurement by certain state governments for small-value contracts.</li> <li>Always check specific tender documents for additional requirements and rules.</li> </ul>

<ul> <li>SHG/FPO/Cooperative registration/incorporation certificate.</li> <li>Proof of address and bank account details.</li> <li>MSME certificate (if registered as MSME).</li> <li>UDHYAM registration.</li> <li>PAN and GST certificate (if applicable).</li> <li>Financial statements/audited balance sheets for the last few years, if requested.</li> <li>Work experience/capability documents and past performance (if available).</li> <li>Digital Signature Certificate (DSC) for the authorized signatory.</li> <li>Tender-specific forms and Earnest Money Deposit (usually exempted for SHGs/MSMEs).</li> </ul> <p>Notes on Special Requirements:</p> <ul> <li>Some SHG tenders may require an Earnest Money Deposit (often exempt for MSMEs/SHGs).</li> <li>If the tender category is for services (like event management, catering, etc.), relevant experience and licenses must be provided.</li> <li>For e-procurement, all documents should be in PDF format and digitally signed using DSC.</li> <li>The exact list can vary; always double-check the tender notification for any extra requirements.</li> </ul>

<p>One can find out about the State Wise enterprise policies page on the Microsite.<br /> Login the Microsite ----&gt; State wise enterprise policies ----&gt; Click on the respective State.<br /> Apart from this, one can directly access it from GeM portal or CPPP portal.</p>

<p>Government of India has mandated that since 2018, public buyers must procure at least 25% of their annual goods from Micro and Small Enterprises (MSEs). Within this, 4% is earmarked for enterprises owned by SC/ST entrepreneurs, and 3% specifically for enterprises owned by women entrepreneurs.</p> <p>Many state governments also have inclusive procurement policies reserving tenders or offering EMD exemptions, relaxation in turnover/experience criteria, and priority selection for women entrepreneurs and SHGs. ​​</p> <p>There are some Government initiatives, flagship programmes and schemes which enable participation of women led enterprises in the public procurement.</p> <ul> <li>Womaniya Initiative: This initiative aims to help women entrepreneurs by connecting them with local government buyers. It also works to increase access to markets, finance, and value-addition for women entrepreneurs.</li> <li>There are also initiatives under MSME like Mahila Coir Yojana (MCY), Samarth Initiative, ZED Certifications which support women led entrepreneurs in promoting and scaling up enterprises.</li> <li>Government flagship initiatives such as Prime Minister&rsquo;s Employment Generation Programme (PMEGP), Micro Units Development and Refinance Agency Bank (MUDRA), Start-up Village Entrepreneurship Programme (SVEP), Bharatiya Mahila Bank, which extends credit support to women entrepreneurs.</li> </ul>

<ul> <li>The SHG should be formally part of NRLM / SRLM /cooperative / society laws, with valid registration certificate or proof of legal status.</li> <li>Active bank account in the name of the SHG / enterprise and bank statements for a relevant period (often last 6 -12 months).</li> <li>PAN card, GST, Udyam / MSME registration.</li> <li>Proof of having done similar work (past work orders / contracts) may be required.</li> <li>Sometimes tenders ask for turnover or financial capacity thresholds.</li> <li>Ability to meet quality, specifications, standards mentioned in the tender (e.g., for food safety, stitching quality, etc.).</li> <li>Infrastructure or human resources required to fulfill the contract (like enough workforce, storage, production capacity, etc.).</li> <li>Non-blacklisting affidavit (not banned by any government agency).</li> <li>Any required certifications (for example, food licenses like FSSAI for food tenders).</li> <li>Sometimes digital signature certificates are required for e-tenders.</li> <li>Earnest Money Deposit (EMD) unless exempted for MSME/SHG in specific tenders.</li> <li>Bid security / performance guarantee (if required).</li> <li>Quotas / preference for enterprises run by women, SC / ST, or marginalized groups.</li> </ul>

<p>The Microsite currently features three animated videos highlighting stitching, foodservice, and housekeeping &amp; laundry enterprises. These models have been successfully piloted, scaled, and are run by SHG members in Bihar, providing services to various government departments. These models have been accommodative in terms of skilling capacity of SHG women and also in terms of requirement at Government schools, hospitals, etc. The goal is to help others replicate these models and understand how SHG-led enterprises can participate effectively in public procurement.</p>

<p>SHG members can access the live tenders through both government portals and through the Microsite:</p> <ul> <li>Government eMarketplace (GEM)portal: <a href="https://gem.gov.in/latest">GeM | Latest</a></li> <li>Government eMarketplace (GEM) &ndash; Central Public Procurement Portal (CPPP): eProcurement System Government of India</li> <li>The respective State portals and links are consolidated in the form of a map in the &lsquo;Opportunities&#39; section of the Microsite, where tenders can be accessed.</li> <li>SHG members can also access their respective district page to access the live tenders.</li> </ul>

<ul> <li>Understand Tender Requirements: Read the tender carefully and note technical specifications, certifications (e.g., FSSAI, GST, BIS), and delivery timelines.</li> <li>Create Standard Procedures: Use SOPs for production, hygiene, and quality checks, so all members follow the same process.</li> <li>Train Members: Build skills through training in technical work, hygiene, safety, and record-keeping.</li> <li>Use Good Materials &amp; Equipment: Source quality raw materials, upgrade tools or machines if required, and maintain a clean workspace.</li> <li>Get Licenses &amp; Registrations: Obtain GST, PAN, Udyam (MSME), or other required registrations for compliance.</li> <li>Maintain Documentation: Keep records of production, invoices, and training to show compliance during audits.</li> <li>Test Before Supplying: Run small trial batches, get feedback, and improve processes before taking large orders.</li> <li>Review &amp; improve regularly: Discuss quality issues as a group and keep training new members to maintain consistency.</li> </ul>

<p>There are some Government initiatives, flagship programmes and schemes which enable participation of women led enterprises in the public procurement.</p> <ul> <li>Womaniya Initiative: This initiative aims to help women entrepreneurs by connecting them with local government buyers. It also works to increase access to markets, finance, and value-addition for women entrepreneurs.</li> <li>Initiatives under MSME like Mahila Coir Yojana (MCY), Samarth Initiative, Zero Defect Zero Effect (ZED) certifications which support women led entrepreneurs in promoting and scaling up enterprises.</li> <li>Government flagship initiatives such as Prime Minister&rsquo;s Employment Generation Programme (PMEGP), Micro Units Development and Refinance Agency Bank (MUDRA), Start-up Village Entrepreneurship Programme (SVEP), Bharatiya Mahila Bank, extend credit support to women entrepreneurs.</li> <li>SRLM network, trained community cadres and SHG federation also plays a key role in promoting women led enterprises at village, block, district and State level.</li> </ul>

<ul> <li>Training &amp; Capacity Building: Conducting sessions on tender processes, costing, documentation, quality standards, and digital literacy.</li> <li>Handholding Support: Guiding SHGs step-by-step in preparing bids, business plans, SOPs, seeking support from technical agencies and meeting compliance requirements.</li> <li>Financial Facilitation: Helping SHGs access Revolving Fund (RF), CIF, bank loans, and obtain PAN, GST, Udyam, FSSAI registrations.</li> <li>Market Linkages: Connecting SHGs with government departments, institutional buyers, and advocating for SHG participation in procurement. NRLM/SRLM also provide marketing platforms such as SARAS melas and promote stores for SHG to sell their products.</li> <li>Monitoring &amp; Quality Support: Tracking enterprise performance, troubleshooting issues, and ensuring timely, quality delivery.</li> <li>Exposure &amp; Peer Learning: Organizing exposure visits to successful SHG enterprises and sharing best practices.</li> <li>Institutional coordination: Negotiating inclusion of SHGs in departmental vendor lists and rate contracts.</li> </ul>

<ul> <li>Microsite serves as a strategic tool for NRLMs, SRLMs, policy makers, government departments, and women entrepreneurs who aim to explore government procurement opportunities and establish sustainable enterprises.</li> <li>It equips stakeholders with knowledge tools and interactive models that support the adoption of sustainable businesses which are scalable.</li> <li>It provides policy insights and guidance for informed decision-making along with resource planning and allocation.</li> <li>It provides step by step guidance on starting apparel/stitching, foodservice, housing and laundry enterprise through playbooks.</li> <li>It showcases innovative models and best practices from different states, which can be replicated by other SHG groups.</li> </ul>

<p>The Public Procurement Microsite is a digital platform that helps Women entrepreneurs explore and participate in government procurement.</p> <p>It provides guidance and resources for NRLMs, SRLMs, and women entrepreneurs. Information and tools to build sustainable and scalable enterprises. Support and linkages to connect women entrepreneurs with government departments and markets. In short, the Microsite helps women-led groups understand opportunities, prepare for participation, and grow through public procurement.</p>