MoRD–PCI India MoU for Women-Led Enterprises through Public Procurement

Context

The Ministry of Rural Development (MoRD), through DAY-NRLM, signed a 3-year (2026–29) Non-Financial MoU with Project Concern International (PCI) India. The partnership aims to strengthen Women-Led Enterprises (WLEs), especially Self-Help Group (SHG) enterprises, by improving their access to government procurement and markets.

Key Features

• Establishment of a National Resource Cell (NRC) within DAY-NRLM with technical support from PCI India.
• Development of:
  • Enterprise incubation frameworks
  • Standard Operating Procedures (SOPs)
  • Capacity-building modules
• Training SHGs on:
  • Government e-Marketplace (GeM) onboarding
  • Tender participation
  • Quality standards and documentation
  • Procurement compliance
• Promotes sustainable enterprises through renewable energy and eco-friendly production practices.

Initial Focus States (2026–27)

• Assam, Bihar, Jharkhand, Karnataka, Maharashtra, Rajasthan, and Uttar Pradesh.

Why Public Procurement Matters

• Government is India’s largest buyer of goods and services.
• Government contracts provide assured demand, stable income, and market access for SHG enterprises.
• Under the Public Procurement Policy for MSEs, 2012:
  • 25% of annual procurement must be from MSEs.
  • 3% is reserved for women-owned MSEs.
  • 4% is reserved for SC/ST-owned MSEs.

Challenges Faced by SHGs

• Difficulty in meeting documentation and compliance requirements.
• Lack of quality certification and tender awareness.
• Limited working capital and delayed government payments.
• Inability to fulfil large procurement orders individually.

DAY-NRLM & Lakhpati Didi

• DAY-NRLM has mobilised over 10 crore rural women into SHGs.
• Lakhpati Didi aims to create women with an annual household income of ₹1 lakh or more.
• Target increased to 6 crore Lakhpati Didis by 2029–30.
• Budget 2026–27: ₹17,280 crore allocated to DAY-NRLM.

Key Terms

• DAY-NRLM: Flagship rural livelihoods mission that promotes SHGs and women-led enterprises.
• SHG (Self-Help Group): A group of 10–20 women who save, lend, and undertake livelihood activities.
• GeM (Government e-Marketplace): Online government procurement portal that includes the Womaniya initiative for women entrepreneurs.
• Non-Financial MoU: Partnership involving technical support without transfer of funds.
• Enterprise Incubation: Mentoring and support to help new businesses become sustainable.
• Market Linkage: Connecting producers with reliable buyers to ensure regular sales.
• SHE-Mart: Community-owned retail outlets under Lakhpati Didi 2.0 for marketing SHG products.