Special Vendor Development Program (SVDP)

Brief
The Special Vendor Development Program (SVDP) is a specialized outreach initiative by the Government of India to integrate SC/ST and Women-led Micro and Small Enterprises (MSEs) into the supply chains of Central Public Sector Enterprises (CPSEs) and Central Ministries

Objectives
- Provides a platform for buyers (CPSEs/Ministries) and sellers (MSEs) to interact, helping small businesses identify emerging demands
- Facilitates the Public Procurement Policy mandate that requires CPSEs to procure at least 25% from MSEs, with specific sub-targets of 4% from SC/ST-owned and 3% from Women-owned enterprises
- Allows entrepreneurs to display their technical capabilities and industrial products to large-scale organizations like BHEL, BPCL, and HPCL

Eligibility Criteria
- Sole proprietorships, partnerships, or companies owned by SC/ST and/or Women entrepreneurs
- The enterprise must be in the Micro & Small Enterprise (MSE) sector
- The enterprise must have valid Udyam Registration (formerly Udyog Aadhaar) and be registered with the MSME Data Bank
- The enterprise should be engaged in manufacturing or service-providing activities
- In cases of partnerships or private limited companies, at least 51% of the shares should be held by SC/ST or Women entrepreneurs

Benefits
- Purchase Preference: Mandates a 25% annual procurement target for CPSEs from MSEs, with sub-targets of 4% for SC/ST and 3% for Women entrepreneurs
- Price Match-making: MSEs quoting within a band of L1+15% can match the lowest price (L1) to secure at least 25% of the tender
- Financial Exemptions: Exemption from Earnest Money Deposit (EMD) and free tender sets
- Market Linkage: Direct interaction with CPSE procurement officials to understand their specific product and service requirements