Short answer: EMD is typically 2–5% of the estimated tender value. The exact amount is fixed in the NIT (Notice Inviting Tender), so pay the figure stated in the NIT rather than your own calculation — tenders above ₹10 crore often specify 1% or a flat maximum cap instead (see the value table in section 2).
Worked example: estimated value ₹50,00,000 at 2% = ₹1,00,000 EMD. At the 5% ceiling the same tender needs ₹2,50,000. Our EMD calculator applies exactly this formula (value × rate ÷ 100) and opens at a 2% default.
EMD is bid security, not a fee: it is refundable, and if you win it is adjusted against the Performance Guarantee / Security Deposit you then have to furnish — see EMD refund below.
EMD is a refundable security deposit every bidder must submit. This data-backed guide explains what EMD is, how much you need to pay, who gets exemptions, how refunds work, and the most common mistakes that cost bidders their deposit.
📅 Updated: 04 November 2026 · Author: Tender84 CPIO Intelligence
EMD (Earnest Money Deposit) is a refundable security deposit that every bidder must submit along with their tender bid. Its purpose is to ensure only serious bidders participate — it deters frivolous or speculative bidding.
Legal basis: EMD is governed by the General Financial Rules (GFR) and each department's tender terms. The amount, payment mode, and exemption criteria are specified in the NIT (Notice Inviting Tender) document.
EMD is typically 2-5% of the estimated tender value. The exact amount is always mentioned in the NIT. Larger tenders often have a maximum cap on EMD.
| Tender Value Range | Typical EMD % | EMD Amount Range |
|---|---|---|
| Under ₹5 Lakh | 2-5% | ₹1,000 – ₹25,000 |
| ₹5 Lakh – ₹50 Lakh | 2-3% | ₹10,000 – ₹1,50,000 |
| ₹50 Lakh – ₹1 Crore | 2% | ₹1,00,000 – ₹2,00,000 |
| ₹1 Crore – ₹10 Crore | 1-2% (often capped) | ₹1,00,000 – ₹5,00,000 |
| Above ₹10 Crore | 1% (with maximum cap) | ₹5,00,000 – ₹10,00,000 |
| Category | Active Tenders with EMD | Avg EMD |
|---|---|---|
| 🏗️ Works | 56,448 | ₹26,000 |
| ⚙️ Services | 5,649 | ₹24,000 |
| 📦 Goods | 5,323 | ₹25,000 |
| State | Tenders with EMD | Avg EMD |
|---|---|---|
| Jammu & Kashmir | 13,860 | ₹14,000 |
| Uttar Pradesh | 8,262 | ₹28,000 |
| West Bengal | 6,684 | ₹20,000 |
| Madhya Pradesh | 5,405 | ₹21,000 |
| Maharashtra | 4,705 | ₹26,000 |
| Tamil Nadu | 3,836 | ₹57,000 ⬆️ |
| Rajasthan | 3,436 | ₹27,000 |
| Kerala | 2,951 | ₹32,000 |
| Punjab | 2,866 | ₹33,000 |
| Odisha | 2,441 | ₹19,000 |
Source: Tender84 database — 76,102 active tenders as of 04 Nov 2026. Defence portal average: ₹51,000 (highest). TN portal average: ₹60,000.
Most e-procurement portals now support online EMD payment. Choose the method specified in the NIT:
| Method | How It Works | Best For |
|---|---|---|
| 🏦 NEFT/RTGS | Online bank transfer to department's account. Upload UTR number in portal. | Most tenders now — fastest and most common |
| 📜 Bank Guarantee (BG) | Issued by a scheduled bank, valid for bid validity period + claim period | Large tenders (₹1 Cr+) — avoids cash outflow |
| 📄 Fixed Deposit Receipt (FDR) | FD pledged to the tendering authority. Original FDR submitted physically. | Medium tenders — earns interest while deposited |
| 💳 Demand Draft (DD) | Physical DD in favour of the tendering authority | Declining — most portals now prefer online |
| 🔄 EMD Exemption Certificate | Upload valid MSME/NSIC/Startup certificate instead of payment | Eligible MSMEs and registered startups |
Several categories of bidders are exempt from paying EMD on many government tenders. However, the exemption is NOT automatic — you must claim it and upload valid proof.
| Exemption Category | Who Qualifies | Proof Required |
|---|---|---|
| 🏭 MSME / Udyam | Micro & Small Enterprises with valid Udyam Registration | Udyam Registration Certificate (upload with bid) |
| 🏢 NSIC | Enterprises registered with National Small Industries Corporation | NSIC Registration Certificate (Single Point Registration) |
| 🚀 Startup India | DPIIT-recognised startups | Startup India Recognition Certificate |
| 🏛️ Government Departments | Central/State government departments and PSUs | Department ID / authorisation letter |
| 🎯 Department-Specific | Varies — some depts exempt specific categories | Check NIT exemption clause carefully |
EMD is fully refundable (without interest) in the following scenarios:
How to track your refund: Most e-procurement portals show EMD refund status in your bidder dashboard. If delayed beyond 30 days, write to the tendering authority with your bid reference number.
EMD is permanently forfeited (not refunded) in these situations:
EMD is typically 2–5% of the estimated tender value. The exact amount is fixed in the NIT (Notice Inviting Tender), and larger tenders often carry a maximum EMD cap. A ₹50,00,000 tender at 2% needs ₹1,00,000 EMD.
Yes. EMD is a refundable security deposit paid without interest. Unsuccessful bidders are normally refunded within 15-30 days after the contract is awarded, and the winning bidder's EMD is adjusted against the Security Deposit or Performance Security.
Micro and Small Enterprises with a valid Udyam registration, NSIC-registered units and DPIIT-recognised startups are exempt from EMD on many government tenders. The exemption is not automatic: you must claim it in your bid and upload the certificate.
Browse 76,000+ live government tenders across 43 portals. Free access — use our EMD calculator, check exemption eligibility, and find opportunities in your state and category.
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