Public Procurement Policy for MSMEs
Ministry of Micro, Small and Medium Enterprises (MSME)The Public Procurement Policy for MSEs helps eligible micro and small enterprises access government procurement opportunities by setting procurement targets and providing participation benefits in public tenders.
Eligibility Criteria
- Must be a Micro or Small Enterprise (MSE)
- Registration Requirement (any one):
- District Industries Centre (DIC)
- KVIC / KVIB
- Coir Board
- National Small Industries Corporation
- Directorate of Handicrafts and Handlooms
- Any authority recognised by MSME Ministry
- OR Udyam/Udyog Aadhaar Registration
- Applicable for: Goods produced by MSEs
- Services provided by MSEs
Benefits
- Tender Advantages:
- Tender documents free of cost
- Exemption from Earnest Money Deposit (EMD)
- Price Preference:
- MSEs quoting within L1 + 15% can match L1 price
- Eligible to supply up to 25% of total tender value
- Reserved Procurement: 358 items reserved for exclusive procurement from MSEs
- Relaxations: Prior experience requirements, Turnover criteria
- Mandatory Procurement Policy:
- 25% of total procurement by Central Government / CPSEs from MSEs
- Includes – 4% from SC/ST-owned MSEs, 3% from women-owned MSEs
How to Apply
- Register on: Government e-Marketplace
- Complete vendor registration
- List products/services
- Participate in government tenders
- Supply goods/services to buyers
- Avail policy benefits automatically upon eligibility
Documents Required
- Udyam Registration Certificate
- PAN details
- GST registration (if applicable)
- Business registration documents
Important Disclaimer
We’ve simplified this scheme to help you understand it quickly. For the latest updates or detailed guidelines, you can always check the official government website.
Ready to Transform Your Business Digital?
Most MSME schemes require proper accounting, GST records, and financial reports.
Vyapar helps you stay ready – so you never miss funding opportunities.
