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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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Comments

  1. Santosh
    Santosh 18/12/2022 5:09 PM

    Please provide Government circulars regarding EMD and tender fees exemption for msme category.

    Reply to this comment
  2. Rajesh kumar
    Rajesh kumar 31/08/2022 10:20 AM

    i AM ALSO INTRESTED TO START THE BUSINESS PLEASE CLARIFY ANY NOTIFICATION REGARDING DEPOSIT EMD AND TENDER FEES.

    Reply to this comment
  3. LUMNI POWER TECH
    LUMNI POWER TECH 31/05/2021 8:13 PM

    Please supply G.O.

    Reply to this comment
  4. Ratnakar Natu
    Ratnakar Natu 04/09/2020 11:47 AM

    Sir Would you please explain following things IS Exemption from EMD , Security Deposit and Turn Over is applicable to...... 1. BARC ,2.Ordnance Factory 3. Municipal Corporations , Nationalized Banks, PUC . Can we have list, any notification on above subject

    Reply to this comment
  5. Ashwani Sharma
    Ashwani Sharma 17/07/2020 11:32 PM

    I have facility management co. I am searching for the notificatuon of msme where the waiver of emd and security deposit is mentioned.please help

    Reply to this comment
  6. NILKANTA SINHA
    NILKANTA SINHA 16/07/2020 2:33 AM

    I AM REGISTRED WITH MSME AND NSIC REGISTERED PARTNERSHIP FIRM. CAN I AVIL SECURITY DEPORT EXEMPTION.IF YES HOW.ANY NOTIFICATION IS THERE FROM MEMS

    Reply to this comment
  7. Riya
    Riya 24/06/2020 5:11 PM

    Hello sir,I'm a women entrepreneur in IT enabled services have registered in 2018 Nov UNDER MSME for UAM. That UAM number is enough to participate BSNL CUSTOMER CENTER OUTSOURCING ?EVEN IF I GOT UAM NUMBER,I just added MY FIRM THIS YEAR ONLY IN DATABANK.KINDLY GUIDE ME SOON.IF I GET THIS OPPORTUNITY TO PARTICIPATE By any chance under msme registration and UAM more helpful

    Reply to this comment
  8. Sanjay Ghosh
    Sanjay Ghosh 19/06/2020 8:02 AM

    I am a MSME enlisted manufacturer ,do I need to pay Tender Fee or EMD . Is it mandatory. Can I have any notification from the competant authorites.

    Reply to this comment
  9. Priti
    Priti 08/06/2020 11:53 AM

    Sir We are Company as a Turnkey Contractor (System integrator) In low voltage based security solution usually involves multiple products of 10 to 15 manufacturers. On average, a product or a manufacturer caries 5% to 30% weightage in the entire solution. Hence it is not possible for one manufacturer to offer low voltage based solution. So this kind of solutions are designed and implemented by system integrator like us via open tenders participation. in such case are we eligible to have EMD exemption as per new atmanirbhar bharat MSME guideline

    Reply to this comment
  10. Pullarao
    Pullarao 14/05/2020 3:21 AM

    Please suggest me can i have exemption of EMD, i am a surveyor tendering for land surveying works and i have registration of 'micro class D' of msme.

    Reply to this comment
  11. S K CHOUDHURY
    S K CHOUDHURY 27/02/2020 11:22 AM

    Only MSME registration is not enough to get the exemption from EMD but you must be a manufacturing unit. Traders are entitled to have MSME regn but not entitled for exemption.

    Reply to this comment
  12. venkat
    venkat 04/01/2020 12:31 PM

    no, you are not eleigible,

    Reply to this comment
  13. L.Prakash
    L.Prakash 24/12/2019 12:27 AM

    Is Udyog number is enough for exemption from end or I should go for any other registration

    Reply to this comment
  14. MD. UMAR FAROOQ
    MD. UMAR FAROOQ 18/11/2019 10:15 AM

    " MSMEs there are no requirements of security money, earnest money, turnover requirement etc in the government tenders." what is the source of this information or is there any valid notification.

    Reply to this comment
  15. Manoj
    Manoj 07/09/2019 1:00 PM

    Pune Municipal Corporation took out a tender for giving advertisement rights from their properties.This is a tender with H1 as the winner of tender. The turnover criteria is 200 crores in last 3 years. I have MSME registration. Can I apply for the tender though not having the turnover as required by PMC? Will I get relief in earnest money deposit? Pl advice. Thanks.

    Reply to this comment
  16. RAMESH KUMAR RODHIA
    RAMESH KUMAR RODHIA 21/06/2019 10:22 AM

    I AM CIVIL COTRACTOR IN D D A CPWD

    Reply to this comment
  17. Soumen Roy
    Soumen Roy 25/04/2019 7:51 AM

    We are MSME registered compan used to participate central and state governments tenders across the country. Can we avail any exemption or relexation on Performance Bank Gurantee & Earnest Money Deposit?

    Reply to this comment
  18. kotian
    kotian 05/07/2018 5:30 PM

    i am new entrepreneur and civil contractor ,newly registered in udyog adhar and i have the udyog adhar no , i have applied for the central government tender , but i do not have work order and work completion certificate required for same work mentioned in tender. Does Pradhan mantri yojana has any exemption for new comer and young contractor with udyog adhar.

    Reply to this comment
  19. Debashis
    Debashis 11/06/2018 6:19 AM

    Hello Mr. Mohan, As per the PPPMSE you are eligible for exemption from earnest money deposit in central PSUs as micro and small enterprise. Bank Guarantee cannot be waived….

    Reply to this comment
  20. mohan
    mohan 11/06/2018 5:06 AM

    We are MSME registered company in Tamil Nadu used to participate central and state governments tenders across the country. Can we avail any exemption or relexation on Performance Bank Gurantee & Earnest Money Deposit?

    Reply to this comment
  21. Debashis
    Debashis 03/05/2018 12:21 PM

    Hello Mr. Pradosh Behura. Yes, your UAM Number is sufficient to avail benefits under the public procurement policy. However, we would recommend you to also upload information in MSME databank for availing other benefits from the Government schemes. The online portal is of same name.

    Reply to this comment
  22. Pradosh Behura
    Pradosh Behura 02/05/2018 11:07 AM

    WE HAVE REGISTERED ONLINE WITH MSME & GOT UDYOG AADHAR NO. IS IT SUFFICIENT TO CLAIM EXEMPTION FROM GIVING E.M.D iN GOVT TENDERS? PLEASE CONFIRM.

    Reply to this comment
  23. Debashish
    Debashish 09/02/2018 12:02 PM

    Hello Mr. Senthil Kumar, Public procurement policy widely varies from state to state. Some states like U P has announced EMD exemption for MSMEs. For Kerala you may check with the Government. You may also like to contact your association to take up the issue with the State government.

    Reply to this comment
  24. Senthilkumar
    Senthilkumar 09/02/2018 10:55 AM

    I am Manufacturer in TamilNadu. Can i Claim EMD Exemption in Kerala Govenment Tenders Using MSME?

    Reply to this comment
  25. santhosh
    santhosh 02/02/2018 7:33 AM

    kindly give a latest govt orders for msme and nsic benefits

    Reply to this comment
  26. Debashis
    Debashis 19/01/2018 9:09 AM

    No your Udyog aadhar document is sufficient

    Reply to this comment
  27.  D kumar
    D kumar 06/01/2018 11:54 AM

    please inform weather security deposit clause is applicable to MSME or NSIC register contractor is security deposit applicable in following NAV RATNA Government company's 1) ONGC Ltd Hazira Surat, Gujarat 2) Rashtriya Chemicals and Fertilizers ltd,

    Reply to this comment
  28. 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
  29. 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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