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EMD vs Security Deposit on GeM: Key Procurement Differences

โœ๏ธ Author: SahayakAI Team๐Ÿ“… Updated: 2026-07-20๐Ÿ” Reviewer: Compliance Advisor

EMD vs Security Deposit: Complete Hinglish Difference Guide

Government tenders fill karte waqt bidders ko do term sabse zaroori lagte hain: Earnest Money Deposit (EMD) aur Performance Security Deposit. In dono terms ke differences simple words me samjhein.


Key Differences Table

Parameter EMD (Bid Security) Performance Security Deposit
Bidding Stage Submission stage (Pre-qualifier) Post-award stage (Contract Signature)
Value 2% to 5% of estimate cost 3% to 10% of order contract value
Exemptions Available for MSMEs/Startups No standard exemptions

EMD (Earnest Money Deposit) Kya Hai?

EMD ko bid submission ke time collect kiya jata hai. Iska purpose check karna hai ki bidder serious hai aur bid valid timeline ke andar cancel nahi karega.

Performance Security Deposit Kya Hai?

Tender win (L1 check) hone ke baad contract compliance assure karne ke liye performance security link deposit karni hoti hai.


FAQ

1. Kya EMD amount contract selection ke baad return ho jata hai?

Haan. Winner performance security submit karte hi EMD refund trigger command execute ho jati hai.


SahayakAI is an independent AI-powered procurement knowledge platform and is not affiliated with Government e Marketplace (GeM) or any government authority.

Disclaimer: SahayakAI is an independent helper tool. This guide is for educational purposes. Access official resources directly on gem.gov.in.
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