What is Earnest Money Deposit (EMD) ?
EMD (Earnest Money Deposit) is a refundable security deposit submitted by bidders during tendering to demonstrate their seriousness and financial commitment to execute the contract if awarded. It acts as a safeguard for the tendering authority against non-serious or defaulting bidders. 🔹 Different Forms of EMD EMD can be submitted in various forms: Demand Draft (DD) Bank Guarantee (BG) Fixed Deposit Receipt (FDR) Online Transfer (RTGS/NEFT/UPI) Insurance Surety Bonds (in select tenders) 🔹 Validity of EMD The validity of EMD must match or exceed the bid validity period specified in the tender. If the EMD is insufficient in amount or duration, the bid is disqualified. Typically, EMD is valid for 90 to 180 days depending on the tender. 🔹 Usage in Power Sector Tenders In power sector tenders (including BESS, solar, wind, hydrogen): EMD ensures only serious bidders participate. It is forfeited if th...