What is the standard EMD percentage in GeM tenders?

Under Rule 170(i) of General Financial Rules (GFR) 2017, Earnest Money Deposit is ordinarily between 2% to 5% of the estimated tender value.

Are Micro & Small Enterprises (MSEs) exempt from EMD on GeM?

Yes. Under the Public Procurement Policy for MSEs Order 2012, eligible MSEs holding valid Udyam Registration for manufacturing or services are 100% exempt from submitting EMD.

Is PBG exempt for MSEs if EMD is waived?

No. While EMD is waived during the bidding phase, the successful bidder is normally required to submit a Performance Bank Guarantee (PBG) of 3% to 5% upon contract award.

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GeM EMD & PBG Calculator

Calculate statutory Earnest Money Deposit (2–5%) and Performance Security (3–5%) under Rule 170 of General Financial Rules (GFR 2017). Check your MSE exemption eligibility instantly.

Estimated Tender Value (₹ INR)

₹

Bidder Enterprise Category*Note: MSE retail traders are generally not exempt on GeM unless OEM is an MSE manufacturer.

EMD Rate (GFR 170)2%

Rule: 2% to 5%

PBG Security (GFR 171)3%

Standard: 3% to 5%

✓ 100% EMD EXEMPTION APPLICABLE

EMD Payable (Saved via Exemption)

₹0 (Exempt)

Standard EMD without exemption: ₹50,000

Required Submission:Bid Security Declaration

Performance Bank Guarantee (PBG):₹75,000

PBG Validity Period:Contract period + 60 days

Generate Bid Security Declaration Format →

Understanding EMD & PBG Rules on GeM

Earnest Money Deposit (EMD / Bid Security) is taken by government procuring entities to safeguard against bidders withdrawing or altering bids during the tender validity period. According to Rule 170 of GFR 2017, EMD must range between 2% to 5% of the estimated value of the goods or services.

Performance Security / PBG: Under Rule 171 of GFR 2017, the winning bidder must furnish a performance security of 3% to 5% (earlier up to 10%) of the total contract value to ensure timely performance of contract obligations.

EMD Exemption for MSEs & Startups: Micro and Small Enterprises holding a valid Udyam Registration (for manufacturing/services) and DPIIT-recognized Startups are entitled to 100% exemption from EMD upon submitting a signed Bid Security Declaration.

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