How to Claim EMD Waiver in CPPP Tenders for MSME Sellers

Under the Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, eligible Micro and Small Enterprises registered under Udyam or NSIC are entitled to 100% exemption from paying Earnest Money Deposit (EMD) and Tender Processing Fees on central government tenders published on the Central Public Procurement Portal (CPPP - eprocure.gov.in).

This guide provides step-by-step instructions on claiming EMD waivers legally and resolving tender rejection risks.

1. Eligibility Criteria for EMD Exemption on CPPP

To qualify for EMD and tender fee waivers under Public Procurement Rules:

2. Step-by-Step EMD Exemption Claim Process on CPPP

[Select Tender on eprocure.gov.in] ➔ [Click 'Seek EMD Exemption'] ➔ [Select 'Yes'] ➔ [Upload Udyam Certificate] ➔ [Attach Bid Securing Declaration] ➔ [Freeze Bid]

Step 1: Verify Tender Notice Terms

1. Open the Notice Inviting Tender (NIT) document on eprocure.gov.in.
2. Check Section "EMD Exemption Allowed: YES / NO".
3. Confirm that MSE exemptions are explicitly authorized in the tender parameters.

Step 2: Initiate Bid Submission

1. Log into eprocure.gov.in/eprocure/app with your vendor credentials.
2. Search for the tender ID and click "Enroll in Tender" ➔ "Proceed to Bid Submission".

Step 3: Select EMD Exemption Option

1. In the fee payment screen, select "Seeking EMD Exemption: YES".
2. Select your exemption authority (e.g., UDYAM / NSIC / KVIC).

Step 4: Upload Supporting Documents

1. Upload a clear PDF copy of your Udyam Registration Certificate.
2. Upload a signed Bid Securing Declaration on corporate letterhead (stating that if your firm withdraws the bid during validity, you agree to temporary suspension from government tenders).

Step 5: Freeze and Submit Bid

1. Upload technical and financial envelopes (BOQ).
2. Click "Freeze Bid Submission" and sign the submission using your Class 3 DSC token.

3. Common Reasons EMD Exemption Claims Are Rejected

Reason A: Mismatch in NIC Activity Code

If your Udyam certificate lists NIC codes for "IT Services" but you bid for "Furniture Supply", the procurement officer may disqualify the exemption claim.

• Solution: Ensure your Udyam profile includes all relevant NIC codes prior to tender submission.

Reason B: Submission by Medium Enterprises

Medium enterprises under MSMED Act are NOT eligible for EMD waivers under the MSE Policy Order.

• Solution: Verify your classification status on the Udyam portal.

Reason C: Failure to Attach Bid Securing Declaration

Many central departments mandate a signed Bid Securing Declaration format in lieu of EMD.

• Solution: Always download the exact Annexure format specified in the tender document.

4. Summary & Best Practices for MSME Bidders

• Update your Udyam certificate whenever expanding into new product categories or services.
• Never upload blurred or unverified Udyam certificates.
• Use SahayakAI Procurement OS to automatically verify EMD waiver eligibility before submitting bids on CPPP and GeM portals.