What is the benefit of Udyam Registration on the Gem portal?
The Government of India has integrated the Ministry of MSME database with the government e marketplace portal. This integration allows registered Micro, Small & Medium Enterprises (MSMEs) to claim powerful concessions when participating in government tenders.
If you are registered under Udyam, you are eligible for legal waivers and price preferences that help small businesses compete against large corporations.
Key MSME Exemptions on the Gem Portal:
Here are the main exemptions you can claim on gem.gov.in using your Udyam Registration:
1. 100% EMD (Earnest Money Deposit) Exemption
- The Benefit: MSEs are not required to submit bid security/EMD to participate in tenders.
- How to Claim: Select "Yes" for EMD exemption during the online bid submission and upload your Udyam Registration certificate.
2. Tender Document Fee Waiver
- The Benefit: MSEs do not have to pay the cost of tender forms/document fees.
- How to Claim: The fee waiver is automatically applied when the system detects a valid Udyam ID connected to your profile.
3. Price Preference (L1 + 15% Matching)
- The Benefit: If a non-MSME seller is L1, any MSE seller within the L1 + 15% price band is invited to match the L1 price. On matching, the MSE is awarded at least 25% of the order value.
How to link Udyam Certificate to Gem Portal account:
- Log in to your seller dashboard on
gem.gov.in. - Go to My Account and select the Company Profile tab.
- Click on MSE Details and enter your Udyam Registration Number and registered mobile number.
- Click Verify and Save. The portal will fetch your details from the MSME database and update your seller status.
Frequently Asked Questions (FAQ)
Does Udyam exemption apply to Medium enterprises?
Most exemptions (such as EMD waiver and price preferences) are reserved exclusively for Micro and Small Enterprises (MSEs). Medium enterprises generally do not qualify for EMD waivers.
My Udyam has different NIC codes from the bid category. What should I do?
You must update your Udyam certificate on the MSME portal to include the correct NIC codes for the products or services you bid on. If the codes do not match, the buyer can legally reject your exemption claim.