Section 8 Companies Invited to Participate in Government Tenders

In a progressive move to expand the role of non-profits in public service delivery, the Government of India has officially invited Section 8 companies to participate in select government tenders and procurement contracts. This decision marks a policy shift aimed at recognizing the capacity and expertise of charitable entities in areas like education, healthcare, skill development, sanitation, and environmental sustainability.

The Ministry of Corporate Affairs (MCA), in collaboration with the Ministry of Finance and the Government e-Marketplace (GeM), has outlined a framework that allows eligible Section 8 companies to bid for projects traditionally reserved for commercial enterprises or registered vendors. These include assignments such as running community health centers, managing skill development centers, supplying educational tools, conducting awareness campaigns, and implementing sustainable development programs.

To qualify, Section 8 companies must be fully compliant with their statutory obligations under the Companies Act, 2013, including the timely filing of financial statements and annual returns. They must also be registered on the GeM portal and may be required to present their CSR Registration Number, relevant sectoral experience, and financial records to establish operational capacity and credibility.

The government has also allowed relaxation in standard eligibility norms for Section 8 bidders, such as exemptions from prior turnover requirements or bid security (EMD) in certain categories, particularly those involving social impact or grassroots engagement. This is expected to create a level playing field and promote inclusive procurement.

Stakeholders from the social enterprise and legal sectors have welcomed the move, viewing it as a significant step toward mainstreaming non-profits into public administration. By allowing Section 8 companies to formally compete for government contracts, the initiative not only acknowledges their field expertise but also encourages innovative, community-focused solutions in national development efforts. This integration of non-profits into the tendering ecosystem is set to unlock new opportunities for collaboration between the government and India’s vibrant social impact sector.