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Exemption from Payment of Earnest Money Deposit (EMD) in respect of Tenders called for by Government Departments

Finance Department has issued Order, Order No G.O.(Ms)No.126 Dated : 11.4.2007 for Exemption from Payment of Earnest Money Deposit (EMD) in respect of Tenders called for by Government Departments, State Owned Corporations, Boards, etc. In Ref of G.O.Ms. No.387, Finance (BPE) Department, Dated: 03.08.1998.

In reference to the above subject matter the Order Issued by the Government are as below.

You can also download the order copy from the following url tnrd.gov.in/State_Schemes/linkfiles/go_fin_126_07_pg323.pdf

ORDER

The Rural Development and Panchayat Raj Department has requested for issue of orders, exempting the Self Help Groups (SHGs) from paying the Earnest Money Deposit / Security Deposit the cost of Tender Forms and other connected documents citing such concession to Small Scale Industrial units in respect of tenders called for by the State Government Departments / State Owned Public Sector Undertaking etc., and to issue necessary exemption under the TamilNadu Transparency in Tenders Act, 1998, in this regard.

EMDExemption

2. As per the provisions of sub – rule (1) of rule 14 of the Tamilnadu Transparency in Tenders Rules, 2000 any category of tenderers can be specifically exempted by the Government from the payment of earnest money deposit. In the Government Order read above, among otherthings exemption has been granted from the Payment of Earnest Money Deposit to the Small Scale Industrial (SSI) Units registered with TamilNadu Small Industries Development Corporation (SIDCO) or National Small Industries Corporation (NSIC) in respect of those items for which the Registration Certificate has been obtained in respect of tenders called for by Government Departments, State Owned Public Sector Undertakings, Statutory Boards, Local Bodies and Co-operatives. On the same analogy, under sub – rule (1) of rule (14) of the TamilNadu Transparency in Tenders Rules, 2000 the Government specifically exempt the Self Help Groups (SHGs) who have passed the first as well as second grading conducted by the Project Officer (Mahilir Thittam), District Rural Development Agency from Payment of Earnest Money Deposit (EMD) in tenders called for by the State Government, State Owned Boards and Corporations etc., in respect of products actually manufactured by them or in respect of services actually rendered by them directly. The exemption will be made available for a period of one year and will be reviewed at the end of one year and suitable decision for further extention of the exemption will be considered based on the usefulness of such exemption.

(By order of the Governor )

K.GNANADESIKAN

SECRETARY TO GOVERNMENT

All Small Scale Industrial units needs to take part in government Tenders and need to take advantage of EMD Exemption. Get Online Tenders information from Tender Details

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Publicity of a Tender Notice

Widest possible publicity through well-circulated national and local newspapers is essential for greater transparency in open tenders. In addition to the existing rules and practices regarding publicity through newspapers, trade journals, the Commission vide their circular  no. 98/ORD/1 dt.18.12.2003 has instructed for up loading the Notice Inviting Tender and also tender  documents in a down loadable form on the web site. The web site publicity is to be given even in the case of limited tenders.

As per the CVC guideline no. 98/ORD/1 dt.18.12.2003 it is mandatory for all organization to published their tender notice on website along with tender documents. 

Tender Detail is premier Tender Information Portal in India. Many bidders and Government Contract use it’s services for their daily need related to tender Information. Apart from this there are many supplier & manufacturer who are visiting tender details for tender Information & Download Tender Documents.

For wider Publicity of Tender Notice, Tender Issuing Authority can also use this website. They can also publish their Tender Document on it. 

Inviting & Opening of Tenders

The award of Public Contract through open tender is to ensure – transparency in public procurement, to maximize economy and efficiency in public procurement, to promote healthy competition among tenderers, to provide for fair and equal treatment to all the tenderers and to eliminate irregularities, interference and corrupt practices by authorities concerned. This is also required by the Article 14 of the Constitution of India.

 

Normally three modes of tendering are adopted. Namely –

  • Open Tenders
  • Limited Tenders
  • Single Tender/Nomination Basis

 

In an open tender, bids are invited giving wide and adequate publicity. This is the most preferred mode of tendering.

 

In the case of small value works, urgent works and in case only a few bidders are available in the market, limited tenders from such bidders who have been empanelled are invited. In case of Limited Tenders the empanelment should be done in a transparent way and updated periodically.

 

Award of contracts on nomination basis, which is also called a single tender is to be resorted to only under exceptional circumstances such as natural calamities and emergencies or there were no bids to repeated tenders or where only one supplier has been licensed ( proprietary item ) in respect of goods sought to be procured.

 

In one of the recent judgments of the Hon’ble Supreme Court in case of Nagar Nigam, Meerut Vs Al Faheem Meat Exports Pvt. Ltd. it has been emphasized that all the public tenders should be in an open and transparent manner with adequate publicity. In this judgment, Hon’ble Supreme Court has stressed that award of contract on nomination basis should be resorted to in rare and exceptional cases only

 

The Commission vide its Circular No. 06-03-02-CTE-34 dt. 20.10.2003 and Circular No. 15/5/06 issued vide letter no. 005/CRD/19 dt. 9th May 2006 has emphasized upon open tendering as the most preferred mode of tendering and insisted on transparency in the preparation of panel in case of limited tenders.

 

During intensive examination of various contracts a warded by many organizations, it is observed that they do not have a clear-cut policy for inviting tenders through various modes as discussed above.

 

Above section is downloaded from cvc.nic.in/3%20Tender%20Stage.pdf for more information you can also visit above given url.

 

This information is provided by Tender Details to all it’s register bidders & contractor. Tender Details want transparency in Government Tendering Process. By providing information to  bidders & contractors, ensure fair & fearless process in Tendering System.

 

For Free Tender view you can also visit TenderDetail.com 

What is Tenders?

In the Government or in the Public sector both Central/State psus, Municipal Corporations etc. are called Tender Notices for their daily Purchase & Contracts. Based on goods & services to be procured through this tenders, Tenders are categorized by the following Tender Type 

Tender  Type:

  • Goods Tenders
  • Services Tenders
  • Work Contract Tenders

 

There are different type of procedure to be adopted for Purchase of goods, services & works. This mainly depend on goods & services type, their frequency of purchase, and other specifications. Different procurement roots adopted in government are as follows

Types of Tender by Tendering Process

  • Tenders

Based on accessibility of tenders like Who can Participate in Tenders, Tenders are further classified as

Open Tenders : Any Contractor can Participate in such kind of tenders. It is a kind of Post evaluation method where at the time of Bid Opening his capabilities are check to execute the given works.

 

Limited Tenders : In such kind of tenders only approved bidders can participate in this tenders. It is a Kind of close Tenders where competition among the pre Qualified bidders.

  • Request for Proposal – RFP
  • Request for Quotations – RFQ
  • Expression of Interest – EOI
  • Auctions
    • Forward Auctions
    • Reverse Auctions
  • Supplier / Contractor Empanelment or Vendor Enlistment
  • Tender for Rate Contract

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All type of Tenders are available on Tender Details. Any types of Tenders published by any tender issuing authority from any where in India are available on Tender Details. Bidders can subscribe Tender Detail services for Government Tenders alerts. It also provides alerts for e Tender Notice

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