Government of India
Ministry of Finance
Department of Expenditure
516, Lok Nayak Bhawan,
New Delhi
Dated : 25.07.2017.
OFFICE MEMORANDUM
Subject: Amendment to the Rule 170(1) of General Financial Rules (GFR), 2017.
The reference of Department of Industrial Policy & Promotion (DIPP)
to exempt Startups from submitting Earnest Money Deposit (EMD) has been
considered and it has been decided to revise the Rule 170(i) of GFRs,
2017 regarding Sid Security’ as under:
“Revised Rule 170 (1): To safeguard against a
bidder’s withdrawing or altering its bid during the bid validity period in the
case of advertised or limited tender enquiry, Bid Security (also known as
Earnest Money) is to be obtained from the bidders except Micro and Small
Enterprises (MSEs) as defined in MSE Procurement Policy issued by Department of
Micro, Small and Medium Enterprises (MSME) or are registered with the Central
Purchase Organisation or the concerned Ministry or Department or Startups as
recognised by Department of Industrial Policy & Promotion (DIPP). The
bidders should be asked to furnish bid security along with their bids. Amount
of bid security should ordinarily range between two percent to five percent of
the estimated value of the goods to be procured. The amount of bid security
should be determined accordingly by the Ministry or Department and indicated in
the bidding documents. The bid security may be accepted in the form of Account
Payee Demand Draft, Fixed Deposit Receipt, Banker’s Cheque or Bank Guarantee
from any of the Commercial Banks or payment online in an acceptable form,
safeguarding the purchaser’s interest in all respects. The bid security is
normally to remain valid for a period of forty-five days beyond the final bid
validity period.”
2.This OM is also available on our website http://doe.gov.in -> Notification ->Circular –> Procurement Policy OM.
3. Hindi version of this OM will follow.
S/d,
(Vinaya1 T. Likhar)
Under Secretary to the Govt. of India
Tel.No.2462 1305.
To
All Secretaries & Financial Advisers of Ministries/ Departments of the Government of India.
