Quick Tip: EMD percentage in tender on GeM sits between 0.5 percent and 5 percent under GFR 2017. GeM uses 1 percent as the operational default across most tenders. The buyer may set a higher figure within the 0.5 to 5 percent band depending on the category, the contract value plus the risk profile of the procurement. Sellers read the exact figure from the tender document rather than defaulting to the 1 percent operational figure across the board.
Sellers asking what EMD percentage in tender to expect on a GeM bid want a benchmark before they open the tender itself. The default is 1 percent. The band is 0.5 to 5 percent under GFR 2017. But what actually gets set on a specific tender depends on how the buyer read the risk profile. This piece walks through the EMD percentage in tender ranges, the drivers that push the buyer to one end or the other plus where ClearBid Tender Intelligence fits into surfacing the exact figure early.
The Default EMD Percentage in Tender That Applies on Most GeM Bids
The default EMD percentage in tender on GeM is 1 percent of the estimated procurement value. This is the GeM operational default that applies on most tenders unless the buyer specifies otherwise. It sits well inside the 0.5 to 5 percent band GFR 2017 allows. Sellers who have never seen a specific tender's ATC section can safely assume 1 percent as a planning starting point, then confirm against the actual document. See the EMD amount in GeM tenders calculation walkthrough for the full framework.
Three implications of the 1 percent default EMD percentage in tender:
- Deposit rate at1 percent: A fifty lakh rupee procurement blocks fifty thousand rupees, a manageable figure for most MSMEs.
- Default is a starting point, not a guarantee: The buyer may override the default with a higher figure. Sellers confirm from the tender document.
- Predictable across most procurement categories: The 1 percent default cuts across most category types unless the risk profile pushes the buyer higher.
For sellers who want the exact formula on how to calculate EMD in tender scenarios, once the buyer-set rate is known, the formula walkthrough covers the multiplication step by step. The formula is estimated procurement value multiplied by the buyer-set percentage.
The Full GFR 2017 Range for EMD Percentage in Tender
The full EMD percentage in tender range under GFR 2017 spans from 0.5 percent at the low end to 5 percent at the high end. Where a specific tender falls inside this band depends on the buyer's read of the procurement risk. Lower-risk categories can sit at the low end. Higher-value or higher-risk categories can go up to the 5 percent ceiling. See the EMD in auction explained walkthrough for the wider EMD context including reverse auctions.
Three points on the full EMD percentage in tender range:
- Deposit rate at0.5 percent: The floor of the GFR 2017 range, used on lower-risk categories where the buyer wants minimal seller-side blockage.
- Deposit rate at3 percent: A common mid-range figure on medium-risk procurement where the buyer wants stronger commitment signal.
- Deposit rate at5 percent: The ceiling of the GFR 2017 range, used on high-risk procurement where walkway risk is significant.
What Drives the Buyer to Set a Higher EMD Percentage in Tender
The EMD percentage in tender is not arbitrary. The buyer sets a higher figure within the GFR 2017 band based on three factors. The category of the procurement. The contract value of the procurement. The risk profile of the specific procurement. See the how to calculate EMD in a tender walkthrough for the formula the seller applies once the percentage is known.
Three drivers that push the deposit rate toward the higher end:
- Category-specific risk: Categories with historically high walkway rates get a higher deposit rate by design.
- Contract value at risk: Larger procurements get a higher deposit rate because the buyer's exposure to a walkway is proportionally larger.
- Procurement-specific risk: A tender with tight delivery timelines or unusual specifications carries a higher risk profile, which the buyer offsets with a higher deposit percentage.
What Drives the Buyer to Set a Lower EMD Percentage in Tender
The EMD percentage in tender moves toward the low end of the GFR 2017 band on lower-risk procurement. The buyer wants to reduce the working-capital burden on eligible sellers while still keeping the serious-intent signal the deposit is designed to create. See the EMD meaning in auction walkthrough for the parallel auction context.
Three factors that push the deposit rate toward the lower end:
- Routine repeat procurement: Regular buys of standard commodity items carry lower walkway risk. The deposit rate can therefore sit low.
- MSME-friendly buyer discretion: Some buyers deliberately keep the deposit rate low to encourage broader MSME participation.
- Standardised technical specifications: Tenders with well-known standard specifications carry lower fulfilment uncertainty, which allows a lower deposit percentage.
When EMD Percentage in Tender Does Not Apply to Your Bid
EMD percentage in tender does not apply on every bid the seller enters. EMD is not mandatory on every GeM tender. The buyer normally requests it only when the procurement value crosses rupees five lakh. Even above that threshold, the buyer still has discretion whether to include the requirement. Exempt sellers skip the deposit entirely. See the EMD forfeited meaning walkthrough for what happens if the deposit is required and the seller triggers forfeiture later.
Three situations where the EMD percentage in tender is irrelevant to the seller:
- Below the five lakh threshold: The buyer normally does not request an EMD. No percentage applies.
- Buyer waived the requirement above the threshold: The buyer has discretion above five lakh whether to include the EMD requirement at all.
- Seller in an exempt category: An MSE with Udyam registration, a DPIIT-registered Startup or a PSU may skip the deposit regardless of the percentage the tender specifies.
How Sellers Read the EMD Percentage in Tender From the Bid Document
Sellers read the EMD percentage in tender from either the bid landing page or the Additional Terms and Conditions section. Both places carry the figure the buyer set. Sellers who miss the percentage on the landing page should check the ATC before assuming the default 1 percent applies. See the tender document anatomy for MSMEs walkthrough for the five-section read that locates the EMD clause reliably.
Three places sellers look to confirm the EMD percentage in tender:
- Bid landing page: The main EMD figure often surfaces here at a glance for the seller.
- Additional Terms and Conditions section: The detailed EMD percentage in tender and instrument requirements typically sit inside ATC.
- EMD-specific dropdown on the portal: The seller can login to GeM and navigate to the EMD section for the specific bid to confirm entities exempted from EMD payment.
A seller who reads the EMD percentage in tender at the shortlist stage rather than at the fill stage saves the frustration of realising mid-fill that the required deposit is higher than the seller planned. Building the reading discipline into the pre-bid check means the EMD percentage in tender becomes a routine input rather than a surprise. Sellers who track the deposit rate across every shortlisted bid can also identify buyer patterns. A specific buyer department that consistently sets 3 percent tells the seller to plan for that figure whenever a new tender from the same buyer appears in the shortlist.
Reading the rate correctly is one of the smaller disciplines that compounds across a full year of tender activity. A seller who tracks the deposit rate for every shortlisted bid ends up with a working library that speeds up the shortlist read for every future tender. Over three or four quarters the seller also has a private benchmark for what to expect from each buyer department, which is more useful than any generic average. This library plus the exemption profile the seller carries under Udyam registration together shape working-capital planning across the full quarter.
The deposit rate is only one input among several that shape the seller's shortlist decision. The pre-qualification criteria fit, the payment cycle, the delivery locations plus the penalty rates all sit alongside the deposit rate in the same pre-bid read. Sellers who treat these inputs as a checklist rather than a linear read finish the pre-bid check faster and with fewer surprises. The checklist model also lets the seller compare across parallel bids without treating each tender as a completely new problem to solve from scratch.
Sellers who build the reading habit typically see improvements in two areas within a quarter. Fewer surprises at fill time because the deposit figure was already known during shortlisting. Better working-capital forecasting because the seller knows how much capital is likely to sit blocked across parallel bids in any given month. Both outcomes reduce the operational drag that catches sellers who read tender documents at fill time rather than at shortlist time.
How ClearBid Surfaces the EMD Percentage in Tender Before You Bid
ClearBid Tender Summary reads every tender the seller uploads and highlights Key dates, Scope of work, Eligibility criteria plus Documents required in one page. Sellers see the EMD percentage in tender the buyer set on this specific bid, the accepted instruments plus whether an exemption applies against the saved Udyam profile. The eligibility check matches the saved company profile against the pre-qualification criteria and returns a fit score in seconds.
For an MSME running multiple parallel bids across categories, the summary front-loads the EMD percentage in tender across every shortlist so working-capital planning happens in seconds. Register on ClearBid today to read the EMD percentage in tender through a curated summary rather than a forty-page manual read.
Frequently Asked Questions
Q1. What is the default EMD percentage in tender on a GeM bid?
The default EMD percentage in tender on a GeM bid is 1 percent of the estimated procurement value. This is the GeM operational default that applies on most tenders unless the buyer specifies a different figure. The wider GFR 2017 range allows 0.5 percent to 5 percent. Sellers should confirm the exact figure from the bid document rather than default to 1 percent across every tender.
Q2. What is the full range of the EMD percentage in tender under GFR 2017?
The full range of the EMD percentage in tender under GFR 2017 spans from 0.5 percent at the low end to 5 percent at the high end. Where a specific tender falls inside this band depends on the buyer's read of the category, the contract value plus the risk profile of the procurement. GeM uses 1 percent as the operational default inside this band.
Q3. Why does the EMD percentage in tender vary between different GeM bids?
The EMD percentage in tender varies between GeM bids because the buyer sets the figure based on three factors. The category of the procurement. The contract value of the procurement. The risk profile of the specific procurement. Higher-risk or higher-value procurements typically carry a higher EMD percentage. Standardised or lower-value procurements typically carry a lower percentage within the GFR 2017 band.
Q4. What emd amount does a 3 percent EMD percentage in tender give on fifty lakhs?
A 3 percent EMD percentage in tender on a fifty lakh rupee procurement gives an emd amount of one and a half lakh rupees. The same tender at the default 1 percent would give fifty thousand rupees. At the GFR 2017 ceiling of 5 percent, the emd amount would be two and a half lakh rupees. Sellers calculate against the exact percentage stated in the tender document.
Q5. When does the EMD percentage in tender not apply to a seller at all?
The EMD percentage in tender does not apply when the procurement value is below rupees five lakh, since the buyer normally does not request an EMD below that threshold. It also does not apply when the seller falls in an exempt category. An MSE with Udyam registration, a DPIIT-registered Startup or a PSU may skip the deposit entirely on tenders where the exemption applies.
Q6. Where can sellers read the EMD percentage in tender on a GeM bid?
Sellers read the EMD percentage in tender from either the bid landing page or the Additional Terms and Conditions section of the tender. Both places carry the figure the buyer set. The EMD-specific dropdown on the GeM portal for the specific bid also lets the seller confirm which entities are exempted from EMD payment on that procurement.
Q7. How does ClearBid help me spot the EMD percentage in tender across parallel bids?
ClearBid Tender Summary reads the tender then highlights Key dates, Scope of work, Eligibility criteria plus Documents required in one page. Sellers see the EMD percentage in tender the buyer set on each shortlisted bid, the accepted instruments plus whether an exemption applies against the saved Udyam profile. The eligibility check returns a fit score in seconds.
