EMD – Earnest Money Deposit
(as per GCC for Works – Nov, 2018)
ü
Earnest means – Showing sincere
interest/serious in participating the Tender process, if awarded executing the
Work for Organizations like Indian Railways.
ü
EMD – Earnest Money Deposit – means an earnest
payment as specific form of Deposit to demonstrate that the applicant is
serious/sincere to participate the Tender work and complete the work for
orgnisations like Indian Railways, if awarded.
ü
EMD Rates are as follows.
Value of the
Work
|
EMD Amount (
Rounded to a nearest Rs.100)
|
Up to Rs.1 Crore
|
2 % of value of the work
|
Beyond Rs. 1 Crore
|
Rs. 2 lakhs + 0.5 % of the excess of
the estimated
cost of work beyond Rs.1 Crore
|
ü
Maximum EMD is Rs. One
Crore only.
Examples for calculation
of EMD under different circumstances: -
=======================================================
1.
Value of Work
- Rs. 25,60,520
2 % of Rs.25,60,520 - Rs. 51,210
Answer
is Rs. 51,200 /- (Rounded off to a nearest
Rs.100)
=======================================================
2.
Value of Work
- Rs. 4,00,00,000 ( Rs. Four Crores)
First one Crore
|
Rs.2,00,000 (Rs. Two Lakhs)
|
One Crore to Four Crore ( 3 Crores)
|
Rs.3 Crores x 0.5 % = Rs. 1,50,000
(Rs.1.5 Lakhs)
|
For Value of Rs.4 Crores
|
Rs.2 Lakhs plus Rs.1.5 Lakhs = Rs.3.5 Lakhs
|
=======================================================
3.
Value of Work
- Rs. Two Hundred Crores
First one Crore
|
Rs.2,00,000 (Rs. Two Lakhs)
|
One Crore to Two Hundred Crore ( 199
Crores)
|
Rs.199 Crores x 0.5 % = Rs.99,50,000
|
For Value of Rs.200 Crores
|
Rs.2,00,000 plus Rs.99,50,000 = Rs.1,01,50,000. However maximum EMD is Rs.1 Crore. So EMD is
Rs.1,00,00,000/- ( Not Rs.1,01,50,000)
|
=======================================================
ü
EMD is applicable to all modes of Tenders such
as Open, Limited, Single etc.
ü
Exemption for Submission
of EMD – Firms recognized as “STARTUPS” by DIPP (Dept of Industrial Policy
& Promotion.
ü
EMD of Successful Tenderer – Retained as part of
Security Deposit. But Railway shall return the EMD, if a Successful Tenderer
submit “Term Deposit Receipt (TDR) / Bank Guarantee Bond towards the Full
Security Deposit.
ü
EMD shall be deposited in Cash (through
E-Payment Gateway) or as mentioned in Tender documents.
ü
EMD of unsuccessful Tenderers – Returned to
them. But Railway is not liable to pay the depreciated value, if any or any
interest on EMD.
ü
Forfeit of EMD:
1.
If the successful tenderer unable to submit the
PG – Performance Guarantee within validity of time, or
2.
If the successful Tenderer resile/abandon from
his offer, Or
3.
Modify the terms and conditions there of in a
manner not acceptable to the Railways.
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