MMitraTender

EMD (Earnest Money Deposit)

What EMD means in a GeM tender

Definition

EMD is a bid security a seller deposits with the bid to show it is serious. It can be forfeited if the seller withdraws or changes its offer during bid validity, or refuses the contract after winning. Unsuccessful sellers get it back. Registered MSEs for the item and DPIIT-recognised startups are usually exempt — the bid document states the amount and exemptions.

In simple words

EMD ek 'bayana' hai — bid ke saath jama, haar gaye to wapas, beech mein bhaag gaye to zabt.

Related terms

Guides on this topic

This is a general explanation. Confirm exact limits, percentages and timelines in the bid document and on gem.gov.in.

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