Quick Tip: EMD exemption for MSME sellers comes from Udyam registration and the Public Procurement Policy for Micro and Small Enterprises Order, 2012. Make in India preferences run separately, under the Public Procurement (Preference to Make in India) Order and the specific provisions each tender document publishes. The two concessions are independent. A seller can qualify for the EMD exemption without holding a Make in India (MII) certificate and the tender document confirms which preferences apply to a specific bid.
Every MSME bidding on GeM comes across two overlapping questions early in the process, which is whether the EMD exemption for MSME applies and whether a MII certificate changes anything. The two concessions come from different policy instruments and apply on different terms. This article will walk you through where the EMD exemption comes from, how Make in India provisions are set inside the tender document and where ClearBid Tender Intelligence surfaces both against every uploaded tender.
Where the EMD Exemption for MSME Comes From
EMD in tender is the refundable deposit a seller submits along with the bid, fixed by the buyer in each tender document. Under an Office Memorandum of the Department of Expenditure, Ministry of Finance, Government of India, Micro and Small Enterprises registered under Udyam can claim an exemption from the deposit where the tender specifies it. See the walk-through of EMD in tender payments for how the exemption sits inside the wider deposit rules.
The exemption is not automatic on every tender. The seller must claim it explicitly by attaching the Udyam registration certificate and the exemption declaration. A bid that skips the deposit without claiming the exemption is treated as non-compliant, just as a bid that pays the wrong amount would be. MSEs manufacturing the tendered product are exempt from EMD on eligible tenders where the tender allows it, per the MSE procurement policy.
Key point: The EMD exemption for MSME sellers depends on Udyam registration and MSE classification. Medium Enterprises are not exempt from EMD under this policy. The exemption applies where the tender specifies it, not automatically on every bid.
For a wider view of what the EMD exemption for MSME sellers actually frees up in working capital across parallel bids, the walk-through of GeM registration benefits for MSMEs places the EMD concession alongside the 25 percent procurement target and the 15 percent L1 price match. Sellers who understand the wider bid life cycle from draft to award can see where the EMD claim sits inside the flow.
How Make in India Provisions Appear on a GeM Tender
The Public Procurement (Preference to Make in India) Order sets separate preferences for local suppliers on eligible items and categories. Every tender document that falls under the Order publishes the specific provisions the seller must meet, including any threshold that classifies a seller as a Class 1 supplier in GeM or a Class 2 supplier and the price or purchase preferences that apply to each class.
Make in India eligibility GeM tenders publish is decided by the tender document itself. The buyer specifies which local content thresholds apply for the item category, what proof the seller must submit and what preference the qualifying seller receives. Sellers cannot assume the same rules across categories, since the Order allows category-specific variations that each tender captures inside its own clause.
A structured read of the GeM tender document surfaces the Make in India provisions in the same pass as the eligibility criteria and the EMD clause so the seller can confirm both concessions apply before spending time on the technical drafting.
How the Two Concessions Interact for an MSME Seller
The EMD exemption for MSME sellers and the Make in India preference are independent. A seller can hold both, either or neither of the two concessions, depending on the specific tender and the seller's own status. Understanding this distinction matters because sellers who assume the two are linked often either miss claiming the EMD exemption for MSME where it applies or attach the wrong documents to the wrong section of the bid.
- MSE with Udyam only: The seller claims the EMD exemption for MSME under the MSE procurement policy where the tender allows it, based on the Udyam certificate and the exemption declaration
- MII certificate holder without Udyam: The seller claims the Make in India preference where the tender specifies it but pays the EMD as any non-MSE bidder does
- MSE with Udyam plus MII certificate for GeM: The seller claims both concessions where the tender allows them, subject to the specific provisions the tender publishes for each. This is the position that unlocks the strongest combined preference on eligible bids
- Neither Udyam nor MII certificate: The seller pays the EMD and does not receive either preference, subject to any other concessions the tender allows
For sellers with valid Udyam, the wider GeM registration benefits for MSMEs already cover the 25 percent procurement target and the 15 percent L1 price match on eligible tenders. The Make in India preference layers on top of the EMD exemption for MSME sellers where the tender allows both. The two concessions can compound on the specific bids where each applies.
How to Confirm Local Supplier Status on a GeM Tender
Local supplier status on a GeM tender is confirmed against the specific tender's Make in India provisions rather than a blanket rule across tenders. The tender document publishes the local content requirement, the class definition and the documentary proof the seller must attach to claim the preference.
- Read the tender's Make in India clause: The clause specifies the local content threshold for the item category and the class definition the buyer applies
- Prepare the supporting declaration: The tender lists the format the seller must use for the local content declaration, which typically requires certification by a statutory auditor or a cost accountant for larger contracts
- Attach the MII certificate for GeM where the tender requires an issued certificate rather than a self-declaration
- Cross-check against the eligibility criteria: A local supplier in GeM claim is valid only where the tender itself allows the preference for that item category, in the same way the EMD exemption for MSME sellers applies only where the tender allows it
Key point: The Make in India provisions vary by tender and by item category. Sellers should confirm the specific tender's clause rather than assume a common set of rules across bids. The tender document itself is the source of truth for both the class definition and the preference.
Common Errors When Claiming Both Concessions Together
Sellers who try to claim both the EMD exemption for MSME sellers and the Make in India preference on the same tender sometimes lose one or both on avoidable errors. The most common patterns are:
- Skipping EMD without an explicit exemption claim: A bid that does not pay EMD and does not attach the Udyam certificate plus exemption declaration is treated as non-compliant
- Claiming Make in India without the tender allowing it: If the tender does not carry a Make in India clause for the item category, a preference claim adds no value and can be treated as an inconsistent submission
- Mismatched documents: Uploading a Udyam certificate under the Make in India section or the local content declaration under the EMD section, gets flagged at technical evaluation
- Assuming Medium Enterprise status qualifies for the EMD exemption: The EMD exemption for MSME under the MSE procurement policy applies to Micro and Small Enterprises, not to Medium Enterprises
A pre-bid checklist run before drafting catches these documentation gaps alongside the eligibility and technical checks. Sellers who plan for both the EMD exemption for MSME claim and the Make in India documentation at the same time usually complete the drafting cleanly rather than in two passes.
Sellers who follow the structured daily ongoing-bids workflow also catch the EMD exemption for MSME check and the Make in India provisions as part of the same tender review, rather than as two separate manual lookups per bid.
How ClearBid Tender Intelligence Surfaces Both Concessions
Running the concession check manually on every tender takes time, since the seller has to open the tender document, read the EMD clause and the Make in India clause separately and confirm the eligibility criteria for each. Getting the EMD exemption for MSME check right the first time avoids the compliance issues that come from claiming an exemption without the right supporting documentation. ClearBid Tender Intelligence surfaces the EMD requirement, the accepted instruments, the MSE exemption applicability and any Make in India provisions inside a structured tender summary for every uploaded GeM tender.
For an MSE-registered seller, the eligibility check identifies whether the tender allows the EMD exemption against the saved Udyam profile, which removes the manual cross-check that would otherwise be needed. The seller then handles the deposit payment or the exemption declaration, the MII certificate upload where required and the portal interaction directly on GeM.
Across five or ten live bids in parallel, the EMD exemption for MSME sellers can free enough working capital to cover an entire payroll cycle. The seller runs the exemption claim as a repeatable check rather than a case-by-case decision, which is what a curated tender feed makes possible. Pairing the EMD exemption for MSME check with the Make in India provisions in the same tender summary compresses two separate lookups into one review.
Register on ClearBid today and get the EMD exemption and Make in India provisions surfaced against every uploaded GeM tender.
Frequently Asked Questions About EMD Exemption and Make in India on GeM
Q1. Does a MII certificate affect the EMD exemption for MSME sellers?
No. The EMD exemption for MSME sellers comes from Udyam registration and the MSE procurement policy, while the Make in India preference comes from the Public Procurement (Preference to Make in India) Order. The two concessions are independent. A seller with valid Udyam can claim the EMD exemption where the tender allows it, regardless of whether the seller also holds a MII certificate.
Q2. Do I need a MII certificate for GeM tenders?
A MII certificate for GeM is needed only where the specific tender's Make in India clause requires it. The tender document publishes the local content threshold, the class definition and the documentary proof the seller must attach to claim the preference. Sellers should confirm the tender's clause rather than assume the certificate is universally needed.
Q3. How is Make in India eligibility on GeM decided?
Make in India eligibility on GeM is decided by the specific tender document. The buyer specifies which local content thresholds apply for the item category, what proof the seller must submit and what preference the qualifying seller receives. Sellers cannot assume the same rules across categories, since the Order allows category-specific variations that the tender clause captures.
Q4. What is a Class 1 supplier in GeM and how do I qualify?
A Class 1 supplier in GeM is defined by the specific tender document under the Public Procurement (Preference to Make in India) Order. The tender clause specifies the local content threshold the seller must meet, the documentary proof required and the preference the qualifying seller receives. The threshold and the class definition can vary by item category so the tender itself is the source of truth.
Q5. Can a local supplier in GeM also claim the EMD exemption?
Yes, provided the seller separately qualifies for the EMD exemption through valid Udyam registration and MSE classification. A local supplier in GeM claim under the Make in India Order is independent of the EMD exemption under the MSE procurement policy. A seller holding both Udyam and a MII certificate can claim both concessions where the tender allows them.
Q6. How does ClearBid help me track both concessions across tenders?
ClearBid Tender Intelligence surfaces the EMD requirement, the MSE exemption applicability and any Make in India provisions inside a structured tender summary for every uploaded GeM tender. For an MSE-registered seller, the eligibility check flags whether the exemption applies against the saved Udyam profile. The seller then handles the payment, declaration and portal interaction directly on GeM.
