MSME

How to get an EMD exemption with Udyam / MSME registration

Micro and Small Enterprises can usually skip the EMD deposit — here's how to claim it step by step, and what to do if a portal doesn't apply it.

5 min read · Free guide from Bidrove

Who gets the exemption

  • Micro and Small Enterprises (MSEs) with a valid Udyam registration are exempt from EMD on GeM and on most central-government tenders, under the Public Procurement Policy for MSEs.
  • DPIIT-recognised startups often get the same relief.
  • It is the MSE category that matters — 'Medium' enterprises are usually NOT exempt. Always read the tender's own EMD clause; a few PSUs and state tenders set their own rules.

Before you bid — get these ready

  • A current Udyam Registration Certificate (from udyamregistration.gov.in) with your correct Micro/Small classification.
  • On GeM: make sure your seller profile is verified as an MSE so the exemption applies automatically.
  • Keep a signed EMD-exemption declaration/undertaking handy — some portals ask you to upload one.

Claiming it during submission

  • On GeM the EMD field is waived automatically once your account is a verified MSE — you'll see no EMD due.
  • On CPPP / GePNIC portals, tick the MSE/exemption option (if shown) and upload your Udyam certificate in the documents section.
  • Where an undertaking is required, state that you are an MSE claiming EMD exemption under the MSE Procurement Policy and attach the Udyam certificate.

If the exemption isn't applied

  • Double-check your Udyam classification is Micro or Small (not Medium) and that the certificate isn't expired.
  • Raise it with the tender inviting authority before the bid closes — quote the tender EMD clause and the MSE policy.
  • If it can't be resolved in time, pay the EMD to stay in the race (it's refundable) rather than risk rejection, and follow up after.

Good to know

  • The exemption is for EMD only — you may still owe a Security Deposit or Performance Guarantee if you win.
  • Bidrove shows the EMD on each tender and flags likely MSME relief so you know what to claim.

Find tenders you can actually win

Bidrove shows live Indian government tenders with eligibility, an estimated cost & profit, and a step-by-step bidding guide — free to browse.

Browse live tenders →