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Government tenders in India: what they are, where to find them and how to bid
What government tenders are, who issues govt tenders and where (GeM, CPPP, state portals), what you need to bid, what it costs, and how to find live tenders.
By GovtTenderHub editorial teamUpdated 8 min read
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In short
- A government tender is an invitation from a government buyer (a ministry, department, PSU, state government, municipal body or defence unit) asking firms to quote for goods, services or works. "Govt tender", "e-tender" and "sarkari tender" all mean the same thing.
- Govt tenders are published on official portals: GeM for most goods and services, CPPP and eprocure.gov.in for central tenders, etenders.gov.in for central PSUs, defproc.gov.in for Defence, and a state eProcurement portal for each state.
- To bid you need PAN, GST, a bank account in the firm's name and, for e-tenders, a Class 3 digital signature, plus registration on each portal you bid on.
- Most tenders ask for an EMD of 2% to 5% of the estimated value, and the winner gives performance security (3% to 5% for goods and services). Micro and small enterprises and startups don't pay EMD in central tenders for goods and services.
- The contract usually goes to the lowest bid among those that qualify (L1). Consultancy is often decided on quality and cost together.
Every working day, central and state government offices invite thousands of firms to supply, build and maintain what they need, from computers and medicines to roads, buildings and security staff. That invitation is a tender. This guide explains what government tenders are, who issues them, where to find them, what you need to bid and how a tender is decided, with links to a detailed guide for each step.
What is a government tender?
A government tender is a formal invitation to bid. The buyer publishes what it needs, the conditions a bidder must meet, the documents to send and a closing date. Every firm that qualifies may quote, and the bids are compared under fixed rules, so the buyer gets a fair price and every bidder gets the same chance.
For central government buyers, those rules are the General Financial Rules 2017 and the Department of Expenditure's procurement manuals. States, state PSUs and local bodies follow their own financial rules, and some states have procurement laws of their own, so a state tender can differ in its limits and conditions.
Tenders cover three kinds of contract:
- Goods: anything bought, from stationery and furniture to vehicles and medical equipment.
- Services: manpower, housekeeping, security, transport, IT support, consultancy and maintenance contracts.
- Works: building, roads, water supply, electrical installations and repairs.
An e-tender is a tender where the bid is submitted online, which is now how almost every government tender in India is run.
Who issues government tenders, and where
Each kind of buyer publishes on its own portal. You don't need to watch them all yourself, but you do register on each one you bid on.
| Buyer | What they usually tender | Where it's published |
|---|---|---|
| Central ministries and departments | Goods and services | GeM (compulsory when GeM has the item) |
| Central ministries and departments | Works and other tenders | eprocure.gov.in, with notices on CPPP |
| Central public sector enterprises | All kinds | etenders.gov.in or the company's own portal |
| Army, Navy, Air Force, MES, DRDO | All kinds | defproc.gov.in |
| State governments, state PSUs, municipal bodies | All kinds | Each state's eProcurement portal, see state-wise tenders |
| Railways | All kinds | IREPS |
Most state portals run on the same NIC software (GePNIC), so once you've used one, the others work the same way. A few states run their own systems. The guide to tender portals lists them.
Types of government tenders
The type of tender decides who may bid. For central government buyers the main limits, revised on 10 July 2024, are:
- GeM: direct purchase up to ₹50,000, the lowest price among at least three makers' sellers (L1 purchase) up to ₹10 lakh, and a bid or reverse auction above ₹10 lakh.
- Limited tender: sent only to firms on the buyer's registered list, for goods and services up to ₹50 lakh.
- Open tender: advertised to every eligible firm, the normal route above ₹50 lakh for goods and services, and from ₹10 lakh for works.
- Single tender: one firm, for a sole maker, an emergency or matching existing equipment.
- Global tender: open to foreign firms, and barred up to ₹200 crore without special approval.
Open tenders and GeM bids are where a new firm can compete. The types of government tenders guide covers each mode, two-bid and two-stage bidding, and rate contracts.
Who can bid for govt tenders
Any firm that meets the tender's eligibility criteria can bid. Each tender sets its own: usually registration documents, a minimum turnover and experience of similar work. The eligibility guide explains how these are worked out.
Small firms get real help in central tenders:
- Central ministries, departments and CPSUs must buy at least 25% of their goods and services from micro and small enterprises (MSEs).
- MSEs with Udyam registration get free tender documents, EMD exemption, and the right to match L1 if their price is within 15%, for up to 25% of the order.
- DPIIT-recognised startups don't pay EMD and often get relaxed experience and turnover conditions.
These benefits are for goods you make and services you provide: not for traders, and not for works contracts. State tenders follow state policies. See MSME benefits in government tenders.
What you need before you bid
Get these ready once, before you find the tender you want:
- PAN and GST registration, and a bank account in the firm's name.
- Udyam registration if you're a micro or small enterprise.
- A Class 3 digital signature certificate (DSC) on a USB token, in the name of the person who signs your bids. One DSC works on every NIC portal. See DSC for e-tendering.
- Registration on each portal: a seller account on GeM for goods and services (GeM registration), and bidder enrolment on each eProcurement portal you bid on (NIC bidder registration).
- Your usual papers, scanned and current: turnover certificates, income tax returns, work orders and completion certificates. See documents required for government tenders.
What it costs to bid
- Tender fee: some tenders charge a fee for the documents. MSEs are exempt in central tenders.
- EMD (earnest money deposit): the General Financial Rules set it at 2% to 5% of the estimated value, and 2% is the most common. GeM asks for no EMD on bids under ₹5 lakh. You get it back if you lose, and lose it if you withdraw your bid or win and then don't sign. See EMD in tenders.
- Performance security: only the winner gives it, 3% to 5% of the contract value for goods and services, and 3% to 10% in all for works. MSEs and startups are not exempt. See performance security.
How a government tender works, step by step
- The notice is published on the portal, with the tender document, the bill of quantities (BOQ) for works, and the closing date.
- You read the whole document, check the eligibility, and raise questions at the pre-bid meeting if there is one. Corrigenda (changes) can follow, so check for them before you bid.
- You submit the bid online before the closing time, usually in two covers: a technical bid with your documents, and a financial bid with your price.
- Technical bids are opened first. Firms that don't qualify are dropped, and their price bids are never opened.
- Price bids of qualified firms are opened. The lowest is L1 and usually wins. Consultancy often uses quality and cost based selection (QCBS) instead. See L1 in tenders.
- The winner gets a letter of award, gives performance security, signs the contract and delivers.
You can follow each stage on the portal. The tender status and results guide shows where. For the whole process in detail, read how to apply for government tenders, or the GeM version, how to bid on GeM.
How to find government tenders that suit you
Searching portal by portal is slow: there are dozens of them, each with its own search and CAPTCHA. GovtTenderHub puts the tenders from all of them in one list, free:
- Search everything: all live government tenders, newest first, with filters for value, deadline and more.
- Search near you: tenders by state and by district.
- Search your line of work: tenders by category, such as civil works, IT, medical or manpower.
- Get alerts: new tenders that match your district and keywords, by email each morning. One alert is free. See government tender alerts.
Always confirm the details and any corrigendum on the official portal before you bid. Bids are submitted there, not on GovtTenderHub.
Questions people ask
Are government tenders free to see?
Yes. The official portals publish tender notices free, and GovtTenderHub shows tenders from all of them for free: anyone can search them, and a free account opens the full details. Some tenders charge a fee for the documents, and MSEs are exempt from it in central tenders.
Can a new firm or startup bid for government tenders?
Yes, if it meets the eligibility in the tender. Many tenders ask for past turnover and experience, but central buyers often relax these for DPIIT-recognised startups and MSEs, and both are exempt from EMD in central tenders for goods and services. GeM bids and open tenders are the usual starting point.
Do I have to register on every portal?
On every portal you bid on, yes: GeM for GeM bids, and each eProcurement portal separately. Your Class 3 digital signature works on all the NIC portals.
What's the difference between a tender and a GeM bid?
A GeM bid is a tender run on the Government e-Marketplace, which central buyers must use for goods and services that GeM has. It often ends in a reverse auction, where the qualified sellers lower their prices live. Works and many other contracts are tendered on the eProcurement portals instead.
Is GovtTenderHub a government website?
No. GovtTenderHub (Govt Tender Hub, at govttenderhub.com) is an independent, free search engine for government tenders. It reads public information from the official portals, which remain the place to download documents and submit bids.
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