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The procurement of goods, civil works, non-consulting services and services will be integral to the implementation of NRLM at National, State, District and Sub-District levels. This manual sets forth the NRLM procurement policies and procedures for the guidance of all personnel involved with procurement responsibilities, with the aim of ensuring that programme resources are properly managed and safeguarded. The Manual aims to achieve economy, efficiency and transparency in the implementation of the project, including the procurement of the goods, works and services involved; and ensuring that all eligible bidders are provided the same information and equal opportunity to compete in provision of same.

It will be mandatory for all participating State and District societies and other Government and Non-Government agencies to adhere to the guidelines and procedures outlined in this Manual for carrying out procurement under NRLM. All State Implementing Societies will formally resolve to follow this Manual with release of NRLM funding being contingent on this pre-condition.

Under NRLM, federated structures of Self Help Groups (SHGs) will be formed at different levels (village, block, district) for undertaking value chain linked activities in dairy, agri-business and similar enterprises for better production, storage, marketing, etc. of the produce of the members of the SHGs. These groups would undertake procurement of goods, works and services in line with the selected value added activity. This manual details the principles, processes and methods for community based procurement that project functionaries and community groups shall follow for procurement of goods, works and services.

The procurement manual is developed based on procurement framework and methodology suggested by the Financial Management Rules, GoI (2005); Financial Management and procurement manual of SarvaShikshaAbhiyaan, MHRD, GoI; Stores Purchase Rules methods in various states; World Bank ?Guidance Note For Management Of Procurement Responsibilities In Community-Driven Development Projects?, December 2009 as well as World Bank guidelines for procurement of goods, works and services. This procurement manual has been reviewed and is found in accordance with World Bank‘s ?Guidelines: Procurement Under IBRD Loans and IDA Credits" dated January 2011 (Procurement Guidelines), and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated January 2011 (Consultancy Guidelines).

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