How to apply for government tenders in India, step by step

Government buyers in India spend lakhs of crores a year through tenders, and almost all of it is now bid online. The process is the same whether the buyer is a gram panchayat or a central ministry: find the tender, qualify, bid on time, and win on price or on a mix of quality and price. What changes is the portal and the paperwork. This guide takes you through it in order.

Step 1: Decide what you'll bid for

Tenders fall into three broad groups:

• Goods: supplies such as computers, furniture, medicines or vehicles.
• Services: manpower, security, housekeeping, transport, maintenance, consultancy.
• Works: construction and repair of roads, buildings, water supply, electrical installations.

Pick the kind of work you can prove you've done, in the area you can serve. Tenders ask for past experience of similar work, often over the last three to five years, and a minimum turnover. Starting with smaller tenders in your own district or state builds the record you need for larger ones.

Step 2: Get the basic registrations

You'll need these for almost every tender:

1. PAN of the firm.
2. GST registration.
3. A current account in the firm's name.
4. Udyam registration if you are a micro or small enterprise. It's free on udyamregistration.gov.in and unlocks EMD exemption and other benefits. See MSME benefits in government tenders.
5. Trade licences your work needs: a contractor enlistment with PWD or another department for works, an electrical licence, a PSARA licence for security services, a drug licence for medicines, and so on.

The full list, with what each tender typically asks for, is in the documents checklist.

Step 3: Get a Class 3 digital signature

Bids on NIC e-procurement portals are signed with a Class 3 Digital Signature Certificate (DSC) on a USB token. You buy it from a licensed certifying authority. It usually takes a day or two and lasts one to three years. The DSC guide explains signing and encryption certificates and which one to buy.

Step 4: Register on the portals you need

There is no single portal for all tenders. The portals guide explains who publishes where. In short:

• GeM (gem.gov.in): central ministries must buy goods and services on GeM when they are available there (Rule 149 of the General Financial Rules), and many states and PSUs use it too. Create a seller account; see GeM registration.
• NIC e-procurement portals: the central government's eprocure.gov.in, etenders.gov.in for PSUs, defproc.gov.in for Defence, and a portal for most states. On each, use Online Bidder Enrollment, fill in the form, then log in and register your DSC. You enrol separately on each portal, one DSC per account, and a newly registered DSC can take up to 24 hours to start working, so don't leave it to the day before a deadline. NIC doesn't charge bidders for enrolment, though an organisation running its own portal may.
• Other systems: some states (Karnataka, Gujarat, Andhra Pradesh, Telangana, Bihar, Chhattisgarh) and Railways (IREPS) run their own portals with their own registration.

Step 5: Find tenders that fit

On the portals, tenders are listed under "Active Tenders" or "Tenders by Organisation". Checking many portals every day takes time, so use one search across them: GovtTenderHub lists live tenders from GeM, CPPP and the NIC portals, updated several times a day. Filter by state, category or keyword, and follow a search to see what's new each time you visit.

Look for tenders where you clearly meet the eligibility, the value suits your capacity, and the closing date gives you time to prepare. Central government tenders should ordinarily give at least three weeks from publication to bid (Rule 161).

Step 6: Read the tender document properly

The tender document, often called the NIT (notice inviting tender) plus its annexures, is the contract you're agreeing to. Read all of it before you spend money on a bid. Check:

• Eligibility: turnover, experience, registrations and certifications. If you don't meet one, you'll be disqualified however good your price is.
• Scope and specifications: exactly what you must supply or build, where and by when.
• BOQ (bill of quantities): the items and quantities you price. On NIC portals it's an Excel file you fill in and upload.
• EMD and tender fee: the amounts, how to pay, and whether you can claim an exemption. See EMD in tenders.
• Key dates: pre-bid meeting, last date for queries, bid submission deadline and bid opening.
• Payment terms, penalties and performance security.
• Corrigenda: changes issued after publication. Always check for them before you submit.

If something is unclear, raise it in writing before the query deadline or at the pre-bid meeting. The buyer's answers are published for everyone and can change the tender.

Step 7: Prepare and submit your bid

Most tenders use two covers (also called two packets or two envelopes):

1. Technical bid: your eligibility documents, experience, technical compliance and signed declarations.
2. Financial bid: your price, usually in the BOQ file on NIC portals or in the price form on GeM.

On NIC portals, you log in with your DSC, find the tender, pay or declare the fee and EMD, upload each cover's documents, upload the BOQ, and then freeze the bid. The portal gives you a bid acknowledgement with a bid number. Keep it: it's your proof that you bid on time.

If you pay the fee or EMD online, do it at least a day before closing and check it under Payment Verification before you freeze the bid. If you pay by demand draft or bank guarantee, upload a scan with the bid and deliver the original before bid opening, as the tender directs. Any exemption you claim can't be changed once you confirm it.

Step 8: Bid opening and evaluation

After the deadline, the buyer opens bids online. You can watch the status on the portal, and bidders are often allowed to attend.

1. Technical opening and evaluation: a committee checks each bid against the eligibility and specifications. Bids that don't comply are rejected, and the reasons are recorded.
2. Financial opening: only the qualified bidders' prices are opened.
3. Ranking: bidders are ranked by price, lowest first: L1, L2, L3. In most goods, services and works tenders, L1 wins. Consultancy often uses QCBS, which scores quality and cost together.

MSEs quoting within 15% of L1 may get part of the order if they match the L1 price. How bids are evaluated covers L1, QCBS and tie-breaks in detail.

Step 9: After you win

1. Letter of award (LoA) or purchase order: the buyer tells you that you've won. Accept it within the time given.
2. Performance security: usually 3–5% of the contract value for goods and services, and 3–10% for works counting security deposit or retention money (Rule 171). It is given as a bank guarantee or another form the tender allows, and stays valid until 60 days after all obligations, including warranty, are complete. On GeM it's called ePBG: up to 5%, due within 15 days of the award, and not needed for direct or L1 purchases.
3. Contract agreement: sign it within the deadline. Your EMD is returned once the performance security is in place.
4. Deliver, invoice and get paid: stick to the delivery schedule, because late delivery costs you liquidated damages.

If you don't win, your EMD comes back within 30 days of the award. The result (often shown as AOC, award of contract, on NIC portals) tells you who won and at what price. That's useful for pricing your next bid.

How long it takes

Common questions

Can a new company apply for government tenders?

Yes. Many tenders have no experience requirement or a low one, and many GeM bids relax experience and turnover for micro and small enterprises and DPIIT-recognised startups. Start with those and with small-value tenders, and build a record of completed orders.

Is there a fee to apply for government tenders?

Registration on GeM and on the NIC portals is free. Individual tenders may charge a tender fee (non-refundable) and ask for EMD (refundable). Central government tenders shouldn't charge for downloaded documents under Rule 161, but many state and PSU tenders still charge a fee. GeM charges sellers only once their orders in a financial year pass ₹20 lakh; the GeM registration guide has the details.

Do I need a DSC for GeM?

Usually not. GeM verifies you with Aadhaar or PAN and OTPs, and its terms provide for Aadhaar-based e-sign on documents, which the IT Act treats on par with a digital signature. NIC e-procurement portals do need a Class 3 DSC. See the DSC guide.

How do I know if I won the tender?

Check the tender's status on the portal. After the financial bids are opened, the portal shows the ranking, and the award (AOC on NIC portals) shows the winning bidder. The buyer also sends the winner a letter of award or purchase order.

Can I bid for tenders in another state?

Yes, unless the tender restricts eligibility, for example to contractors registered with that state's PWD. Check the eligibility section.