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23/05/2017 12:49pm

MSMEs not required to pay earnest money or security money in govt tenders: Kalraj Mishra

image MSMEs not required to pay earnest money or security money in govt tenders: Kalraj Mishra

New Delhi, May 23 (KNN) Interacting with the MSME entrepreneurs live through social media platform on Monday, Union MSME Minister Kalraj Mishra reiterated that the micro, small and medium enterprises (MSMEs) are not required to deposit any earnest money in the tenders.

He said, for MSMEs there are no requirements of security money, earnest money, turnover requirement etc in the government tenders.

Mishra was answering to a query from an MSME entrepreneur on whether the MSMEs can get any relief in earnest money deposits in the government tenders.

Mishra said, for MSMEs, there is L1 +15 percent relief along with 20 per cent mandatory procurement criteria from the MSMEs.

According to the Public Procurement Policy all central government agencies have to ensure that at least 20% of their procurement is from the Micro and Small sector (excluding Medium enterprises). Further, 4% of total procurement (20% of the total MSE share) has to be from SC/ST entrepreneurs. It has been operationalized through Government order duly approved by the Cabinet.

Under the policy, tender sets free of cost and exemption from payment of earnest money to registered MSEs.

MSEs quoting price within price band L-1 + 15%, when L1 is from someone other than MSE, shall be allowed to supply at least 20% of tendered value at L-1 subject to lowering of price by MSEs to L-1. (KNN Bureau)


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  1. Debashis Bandyopadhyay
    Debashis Bandyopadhyay 04/12/2017 6:24 AM

    No. But we would advise you to upload your data in MSME Database also. It is online at the portal of same name….

    Reply to this comment
  2. Unni Krishnan
    Unni Krishnan 03/12/2017 10:19 AM

    Is there any documents required other than msme memorandum to get exemption from Tender form fee & EMD ?

    Reply to this comment

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