Jan. 17, 2021

The Finance Ministry (Expenditure Department) has drafted a model tender document for public procurement by all central government departments, in a bid to standardise the language and clauses included, and avoid contractual disputes.


  • Public procurement refers to the purchase of goods and services by the public sector or the government, accounting for an average 15% of GDP globally.

  • In India, government procurement is estimated to constitute about 30% of GDP with the central government accounting for a major chunk.

  • There is no standardised nomenclature in public procurement in India and a mix of American, European and Indian nomenclature has become common. E.g. participants in the Tender are called tenderers and bidders.

  • The standard bidding document developed now, seeks to ease out this duality by mooting that
    • the ‘Tender’ should refer to the tender document and process, while the term ‘Bid’ shall refer to the bidders’ pitches;

    • ‘Bidder’ is to be used instead of ‘Tenderer’ to refer to potential suppliers and the usage ‘Bid document’ be done away with, as per the proposed model.

Source : The Hindu