Earnest Money Deposit (EMD) — bid security, India
Earnest Money Deposit (EMD) is the bidder’s bid-security instrument listed in the Department of Expenditure’s procurement manuals as a prescribed form of bid security.
What it is
The Department of Expenditure’s Manual for Procurement of Works lists “Bid Security/ Earnest Money Deposit (EMD)” as a form of security (section 5.1.1), placing it within chapter 5 on forms of securities.
How it differs from other securities
The Manual separates bid security from post‑award instruments: Performance Guarantee (section 5.1.2) and Security Deposit/Retention Money (section 5.1.3) are distinct entries, signalling different functions and timing.
Practical consequence for a supplier
Whether a bid security is required, and in what form, is specified in the tender documents. The Manual also treats custody and monitoring of such instruments (section 5.1.5), so suppliers should follow the tender’s stated requirements and the procuring entity’s directions.
Sources
Reviewed: October 27, 2026
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