Nepal’s amended procurement framework gives public entities a government e-marketplace route for purchasing listed goods and other services. The key ceilings are Rs 10 lakh for purchase from one provider, Rs 20 lakh for purchase after requesting quotations from at least three providers, and Rs 50 lakh through reverse auction.

The legal foundation is Section 41क of the Public Procurement Act (PPA), added by the second amendment, and Rule 86क of the Public Procurement Regulations (PPR), added by the 16th amendment. This guide explains those provisions and the related reverse-auction procedure for procurement officers, engineers and suppliers.

Legal text checked: 8 September 2026. This article explains the amended framework; it does not confirm an operational marketplace launch, registration portal or payment channel. Confirm those arrangements through PPMO before transacting.

What is the government e-marketplace?

The government e-marketplace—सरकारी ई-मार्केटप्लेस—is the system prepared by the Public Procurement Monitoring Office (PPMO) in which manufacturers, suppliers and service providers publish their products or services with prices. Public entities can purchase the listed items within the prescribed limits and procedures.

Section 41क(1) permits purchase through this system notwithstanding Section 41. Section 41क(2) requires providers to publish product and service details, including prices. Section 41क(3) leaves the publication and purchasing procedures to the prescribed rules. The second amendment also adds development and operation of the marketplace system to PPMO’s functions in Section 65(1)(घ४). Source: PPA, second amendment.

For a buyer, the practical idea is a structured place to identify eligible offerings and use the purchasing route appropriate to the amount. For a supplier, a priced listing becomes part of the procurement process. A listing alone does not guarantee a government order.

The three purchasing limits

Rule 86क(2) sets the following ceilings. One lakh equals Rs 100,000.

Provision Ceiling Purchasing procedure
Rule 86क(2)(क) Cost estimate up to Rs 10 lakh / Rs 1,000,000 Direct purchase of goods or other services from one manufacturer, supplier or service provider.
Rule 86क(2)(ख) Cost estimate up to Rs 20 lakh / Rs 2,000,000 Request quotations from at least three manufacturers, suppliers or service providers and purchase directly at the lowest price.
Rule 86क(2)(ग) Purchase up to Rs 50 lakh / Rs 5,000,000 Use the reverse-auction procedure identified in the Regulations. See the cross-reference note below.

The first two clauses expressly refer to the cost estimate. The third states the procurement ceiling; the reverse-auction procedure separately applies to goods or other services with a cost estimate up to Rs 50 lakh. Use the properly determined estimate when deciding the route. The clauses do not themselves state a separate VAT treatment, so this table does not invent a tax-exclusive threshold. Source: 16th amendment, clause 28, Rule 86क, Gazette pages 36–38; reverse-auction provision, pages 17–20.

These are overlapping “up to” ceilings. As a practical reading, a requirement above Rs 10 lakh cannot use the one-provider permission, and one above Rs 20 lakh cannot use the three-provider quotation permission. This does not mean the wording prohibits a more competitive route for a smaller purchase. An amount above Rs 50 lakh is outside these marketplace permissions and requires another applicable procurement route.

A cross-reference that needs attention

In the Gazette text reviewed, Rule 86क(2)(ग) refers to Rule 31झ while describing reverse auction. However, the provision headed “(रिभर्स अक्सन) विधिबाट गरिने खरिदको कार्यविधि” appears as Rule 31ञ under amendment clause 16. Rule 31झ is headed as the procedure for determining the average bid amount.

This article identifies that inconsistency instead of silently changing the legal reference. The reverse-auction explanation below follows the provision bearing the reverse-auction heading. Before using it in a procurement decision, check for an official correction or obtain PPMO clarification on the cross-reference. Source: 16th amendment, Gazette pages 16–20 and 37.

Who can register, and what does it cost?

Rule 86क(3) addresses interested domestic manufacturers, suppliers and service providers. It sets the marketplace registration and renewal fees as follows:

Item Amount or consequence
Initial marketplace registration Rs 3,000
Annual renewal Rs 1,000
Failure to renew The marketplace registration must be made inactive.

Rule 86क(5) also permits procurable goods and other services to be classified into groups. Check the applicable group and current platform instructions before preparing a listing. “Domestic supplier” should not automatically be read as “every product must be manufactured in Nepal”: those are different concepts, and any product-origin requirement needs its own applicable basis. Source: Rule 86क(3)–(5), Gazette pages 37–38.

The Act requires priced product or service details. As practical preparation, suppliers should also assemble clear specifications, availability, delivery coverage, warranty or service terms and relevant eligibility records. These preparation suggestions are not a claim that Rule 86क prescribes a particular online form or attachment list. Use only PPMO’s officially designated registration and payment arrangements.

What happens in the quotation route?

For goods or other services within the Rs 20 lakh ceiling, Rule 86क(2)(ख) requires quotations to be requested from at least three manufacturers, suppliers or service providers, followed by purchase at the lowest price.

The wording is about requesting quotations from at least three providers. It should not be rewritten as an automatic statutory requirement to receive three valid quotations, nor treated as permission to proceed with any response situation without checking the applicable instructions.

For a meaningful comparison, a procurement team should describe the same required quality, quantity, delivery location and service scope to every invited provider. Keep the request, responses and comparison in the procurement record. A low price for an item that does not meet the requirement is not a sound basis for purchasing it.

This clause expressly uses lowest price. Do not substitute the average-bid-price method used in other amended evaluation provisions. Source: Rule 86क(2)(ख), Gazette page 37.

How the reverse auction works

A reverse auction allows participating bidders to reduce their offered prices within the specified period. The amended procedure is more structured than asking suppliers to lower a price over the telephone.

The provision headed Rule 31ञ contains these requirements:

  1. Use the PPMO-developed system. It applies to goods or other services with a cost estimate up to Rs 50 lakh.
  2. Register bidders. A bidder submits eligibility documents and details and pays Rs 3,000 to register in that system, before or after the invitation. This is stated separately from the marketplace registration provision; do not assume one payment covers both systems without official instructions.
  3. Invite proposals with at least seven days. The public entity discloses the cost estimate and invites registered bidders through the system.
  4. State the purchasing terms. The invitation must cover bid security, the price-reduction period, submission and opening times, contract conditions, technical specifications, quantity, delivery place, estimate, bidder instructions and other lawful requirements.
  5. Run the specified price-reduction window. The text describes a one-hour window beginning at the final half-hour before the proposal submission time. Bidders who have submitted proposals may reduce their offers during that window. Preserve this wording in scheduling and confirm the precise system timetable; do not casually label it “the last hour before closing.”
  6. Observe the restrictions. No additional proposals may be submitted after the reduction process begins. The public entity cannot amend the issued bidding documents under this procedure, and bidders cannot withdraw a submitted proposal.
  7. Select the lowest offer for acceptance. The rule directs selection of the bidder offering the lowest amount during the reduction period. The selected bidder must be notified to submit performance security and enter the procurement contract within seven days.

If the selected bidder fails to proceed, the rule provides successive steps for the next bidders, including three-day action periods and seven-day contract notices. Failure to enter the contract leads to bid-security forfeiture and a referral to PPMO for blacklisting under Rule 141. Read the full subrules before administering this stage. Source: 16th amendment, clause 16, provision headed Rule 31ञ(1)–(14), Gazette pages 17–20.

Four practical examples

These illustrations assume the goods or other services are available in the authorised marketplace and all applicable procurement conditions are met.

Requirement Example estimate What the ceiling permits
A public office needs standard printers Rs 8 lakh The one-provider marketplace route is within the Rs 10 lakh ceiling. Verify specifications and terms before ordering.
An office needs a package of standard furniture Rs 15 lakh The one-provider ceiling is exceeded. The quotation route requires requests to at least three providers and purchase at the lowest price.
A laboratory needs listed equipment Rs 35 lakh The Rs 20 lakh quotation ceiling is exceeded. The marketplace framework points to reverse auction, subject to the procedure and the cross-reference clarification above.
An entity needs a larger equipment package Rs 55 lakh It exceeds the Rs 50 lakh marketplace ceiling. Determine another applicable procurement method.

At exactly Rs 10 lakh, Rs 20 lakh or Rs 50 lakh, the respective “up to” ceiling includes the boundary amount. An eventual discount should not be used to retroactively justify choosing a route that the procurement estimate did not permit.

What this means for engineers and procurement teams

The express regulatory categories are goods and other services. Do not extend these marketplace thresholds to construction works or consulting assignments simply because they can be described online. Determine the legal procurement category first.

As practical file preparation, record the requirement and estimate, why the marketplace route applies, the provider’s active status, the listing and specifications, the selection or auction record, the order or contract, and the delivery and acceptance evidence. This is a recommended audit trail, not an additional document list quoted from Rule 86क.

Before delivery acceptance, engineers should still check whether the supplied item meets the requested specification, quantity and performance requirements. A digital listing helps identify an offer; it does not perform an inspection.

Is this the same as e-GP?

The marketplace provisions describe priced listings, registration and amount-based purchasing routes. A conventional electronic tender notice follows its own applicable bidding procedure. Seeing an e-GP notice or having an existing e-GP account does not, by itself, establish marketplace registration or eligibility to use Rule 86क.

The reviewed legal provisions establish the framework. They do not establish a verified launch date, a public registration URL, an integration arrangement with existing accounts, or detailed payment instructions. Check PPMO’s official notices for those operational arrangements. This article supplies legal guidance, not a marketplace login or registration service.

Sources and related guidance

Engineering Sarathi’s English explanation is an educational interpretation. Use the authoritative Nepali text and applicable official clarifications when recording a procurement decision.