Medical equipment tenders: how to sell to government hospitals

Medical equipment tenders cover everything a government hospital buys, from syringes, beds and oxygen concentrators to ventilators, CT scanners and lab analysers. On top of the usual papers, hospital tenders ask for the right licence for the device, the manufacturer's backing and a service network. This guide explains who buys, where medical tenders are published, the licence and Make in India rules, and the eligibility you will meet.

Who buys medical equipment: the main buyers

Government health spending flows through many buyers. These are the ones that tender most often.

• AIIMS and central government hospitals. The All India Institutes of Medical Sciences and other central hospitals and institutes buy equipment for their departments, labs and new blocks.
• State medical services corporations. Most states buy medicines and equipment for their hospitals through one corporation, such as the Tamil Nadu Medical Services Corporation, Kerala Medical Services Corporation, Rajasthan Medical Services Corporation, Bihar Medical Services and Infrastructure Corporation and Odisha State Medical Corporation. They run large tenders and rate contracts for the whole state.
• ESIC. The Employees' State Insurance Corporation, under the Ministry of Labour and Employment, runs its own hospitals and medical colleges and buys equipment and medicines for them.
• State health departments and medical colleges. District hospitals, government medical colleges and National Health Mission societies also tender on their own, often for smaller items.
• Railway and defence hospitals. Railway hospitals buy through IREPS (see our IREPS tenders guide). Armed forces hospitals and medical units buy through GeM and the Defence eProcurement portal.

Where medical tenders are published

Each portal shows only its own tenders, and a hospital may use two of them for different items. GovtTenderHub brings the open ones together on its medical and pharma tenders page and a narrower medical equipment tenders page, searchable by state and closing date.

Licences you need: CDSCO and the Medical Devices Rules

Medical devices in India are regulated under the Medical Devices Rules, 2017, made under the Drugs and Cosmetics Act. The regulator is the Central Drugs Standard Control Organisation (CDSCO), headed by the Drugs Controller General of India, who acts as the Central Licensing Authority. Each state has a State Licensing Authority, usually its drugs controller.

Every device is placed in a class by risk, based on its intended use:

What this means for a bidder:

• Makers need a manufacturing licence from the right authority for each device. Some Class A devices that are neither sterile nor used for measuring only need to be registered on CDSCO's online medical devices portal, not licensed.
• Importers need an import licence from CDSCO for devices of every class. Applications go through CDSCO's online system.
• Dealers who sell, stock or distribute devices come under the State Licensing Authority. Ask your state drugs controller what registration your devices need.
• Licences stay in force without periodic renewal, as long as the holder pays the retention fee every five years.

Hospital tenders almost always ask for a copy of the valid manufacturing or import licence that covers the exact device offered, in the name of the maker or importer. Check that the model you quote appears on the licence. CDSCO's website publishes the class of each device, so confirm yours before you bid.

Make in India for medical devices

The Public Procurement (Preference to Make in India) Order 2017, as revised on 19 July 2024, applies to medical devices bought by central ministries, their hospitals and institutes, autonomous bodies and government companies. The rules are in our Make in India guide. In short:

• Classes by local content. Class-I local supplier: 50% or more. Class-II: 20% or more but below 50%. Non-local: below 20%.
• Who can bid. Only Class-I and Class-II suppliers, unless the buyer issues a global tender enquiry, which needs special approval below ₹200 crore.
• Higher minimums. A nodal ministry can set a higher minimum local content for its items, never a lower one. The tender must state the minimum that applies, so read it there.
• Purchase preference. If the lowest bid (L1) isn't Class-I, the lowest Class-I bidder within 20% of L1 can match the L1 price and take half the order, or all of it if it can't be split.
• Exemptions. Purchases under ₹5 lakh, spares and consumables for closed systems, and maintenance contracts with the original equipment maker are outside the order. That last point matters in hospitals, where CMC is often placed with the maker.
• Self-certification. You declare your local content. Above ₹10 crore, you also need an auditor's or practising accountant's certificate. A false declaration can mean debarment for up to two years.

The order also says buyers can't ask for proof of supply in other countries or proof of exports as an eligibility condition (para 10). If a tender's conditions look written to shut out Indian makers, raise it at the pre-bid meeting or in writing before the deadline.

State hospitals and corporations follow their own state's purchase rules, which may have their own local-preference policy.

Medical equipment tenders on GeM

Under Rule 149 of the General Financial Rules, central buyers must buy goods available on GeM through GeM. The GeM portal guide explains the limits: direct purchase up to ₹50,000, L1 purchase up to ₹10 lakh, and a compulsory bid or reverse auction above ₹10 lakh. Large equipment almost always goes to a GeM bid.

Points that matter for medical sellers:

• Vendor assessment exemption. GeM's Vendor Validation Policy lets drug and medicine makers or importers with a valid drug licence, and medical device makers or importers with a valid licence, apply for an exemption (VAE) instead of a full vendor assessment. It is valid for 3 years or until the licence expires, whichever is earlier. See GeM vendor assessment.
• Resellers and OEM approval. In many categories, only the OEM or the resellers it authorises on GeM can sell. A dealer needs the OEM's authorisation code before it can pair with the OEM's catalogue.
• Read the bid document. It states the Make in India terms, MSE preference, experience asked and warranty, plus any buyer-added conditions on installation, training and CMC.
• Performance security. Bid and reverse auction contracts can ask for an ePBG of 3% to 5% of the contract value.

Common eligibility in hospital tenders

Each tender sets its own conditions, but these come up in most of them.

OEM authorisation

If you aren't the manufacturer, almost every equipment tender asks for a manufacturer's authorisation form (MAF) for that specific tender, on the OEM's letterhead. It usually confirms that the OEM backs your bid, will supply spares and will support service for the life of the equipment. Many tenders allow either the OEM or one authorised dealer to bid for a product, not both.

Past supplies and performance certificates

Buyers want to see that the same or a similar model is already working in other hospitals. Typical proof is a list of past supply orders with copies, and performance certificates from the users, often from government hospitals. Some tenders relax experience and turnover for MSEs and DPIIT-recognised startups; read the eligibility section, or the relaxation lines in a GeM bid.

Warranty, CMC and AMC

• Warranty: the period after installation when you repair or replace anything at no cost. The tender fixes how long.
• CMC (comprehensive maintenance contract): after the warranty, you maintain the equipment including spare parts, for a yearly charge.
• AMC (annual maintenance contract): maintenance without most spares, which are paid for separately. Each tender defines what its AMC covers.

Many equipment tenders ask for CMC or AMC rates for several years after the warranty, and some add them to the equipment price when deciding the lowest bid, so a low equipment price with a high CMC can lose. Many also add an uptime guarantee, with penalties if the machine is down too long.

Quality and service

Expect to be asked for quality certificates such as ISO 13485 (quality management for medical devices), any certification named in the specifications, a service centre or trained engineers within reach of the hospital, and a commitment to install, demonstrate and train staff. For high-value equipment, the buyer may ask for a product demonstration before technical evaluation.

Add the usual papers (GST, PAN, turnover, EMD, signed declarations); our documents guide lists them.

Medicine and pharma tenders

Medicine tenders follow the same pattern with different licences. The tender usually asks for a valid drug manufacturing or import licence for each product quoted, quality certificates such as WHO-GMP where specified, and past supply records. State corporations often award medicines as rate contracts: you agree a price for a period, and hospitals place orders against it as they need. Quality testing of supplied batches is common, and failing batches can bring penalties or blacklisting under the contract.

How to win more medical tenders

1. Get your licences in order first. No tender accepts a device without the right licence.
2. Collect performance certificates from every hospital you supply. Most tenders ask for them.
3. Price the full life of the equipment, including warranty cost, CMC and spares.
4. Watch your buyers every day. Daily tender alerts by keyword and state save checking every portal.

Common questions

Where can I find hospital tenders?

Central hospitals such as AIIMS publish on GeM and eprocure.gov.in, state corporations and health departments on their state's portal and GeM, and railway hospitals on IREPS. GovtTenderHub collects open tenders from GeM, CPPP and every state portal in one search.

Is a CDSCO licence required for medical equipment tenders?

Yes, for any product that is a medical device under the Medical Devices Rules, 2017. Makers need a manufacturing licence from the state authority (Class A and B) or CDSCO (Class C and D), and importers need a CDSCO import licence. Tenders ask for a copy covering the exact device.

What is CMC in medical equipment tenders?

CMC means comprehensive maintenance contract. After the warranty ends, you maintain the equipment, including spare parts, for a yearly charge. An AMC usually leaves most spares out.

Can a dealer bid in medical equipment tenders?

Yes, in most tenders, with a manufacturer's authorisation form for that tender. On GeM, a dealer also needs the OEM's authorisation as a reseller in many categories.

Does Make in India apply to medical devices?

Yes, in central government purchases of ₹5 lakh and above. Class-I local suppliers get purchase preference, and the tender states the minimum local content. State buyers follow their own state's rules.