Government hospitals buy software through public procurement, and the rules there reward buying from micro and small enterprises. Here is what Udyam registration means, how the Public Procurement Policy for MSEs can apply to hospital software tenders, and what to check beyond the certificate.
Procurement rules vary by buyer, state and tender. Always follow the terms of the specific tender and your procurement department’s guidance.
What Udyam registration is
Udyam registration is the Government of India’s online registration for micro, small and medium enterprises (MSMEs), introduced in July 2020 and replacing the earlier Udyog Aadhaar Memorandum. A registered enterprise receives a Udyam registration certificate showing its classification as micro, small or medium. Micro and small enterprises (MSEs) are the ones targeted by public procurement preferences.
The Public Procurement Policy for MSEs
Under the Public Procurement Policy for Micro and Small Enterprises Order, 2012, central ministries, departments and public sector undertakings have an annual target to procure at least 25% of their goods and services from MSEs, including sub-targets for MSEs owned by SC/ST entrepreneurs and by women. Many state governments have their own MSE procurement policies. See the official FAQs from the Office of the DC (MSME) for details.
Benefits MSE vendors can bring to a tender
- Bid security (EMD) exemption: registered MSEs are commonly exempted from earnest money deposits in central government procurement.
- Purchase preference: MSEs quoting within a band of L1 + 15% may be allowed to supply a portion of the requirement by matching the L1 price, as the policy provides.
- Tender document fee waivers in many procurements.
- Timely payment protection: under the MSMED Act, 2006, buyers must pay MSE suppliers within the agreed period, not exceeding 45 days, with interest payable on delays.
Whether each benefit applies depends on the tender’s category and terms.
What to verify with an MSE vendor
- A valid Udyam registration certificate and the enterprise’s classification.
- That the registered activity is relevant to software development and services.
- The company’s legal registration and GST details.
Beyond the certificate: what really matters
Procurement benefits help an MSE compete, but they do not make software good. Evaluate an MSE vendor exactly as you would any other:
- Production references: is the software running in a hospital like yours today?
- ABDM integration: which milestones are integrated? See our ABDM guide.
- Support capacity: who answers the phone at 9 am on a Monday when registration is down?
- Rollout plan: can they go live department by department? See our implementation plan.
- Data ownership and hosting: can data stay on the hospital’s own server?
Shwastik Tech Solutions: MSME registered
Shwastik Tech Solutions Pvt. Ltd. is an MSME registered under Udyam, based in Darbhanga, Bihar. Our ABDM-integrated Swastik HMS has run a large government medical college since 2024, and our team also provides hospital software development. Share your tender documents and we will confirm how we can participate.
Preparing a hospital software tender? Email contact@swastik.ai or call +91 76545 31678, or request a demo.