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Exemptionfrom Emd

This document summarizes new orders regarding exemptions from payment of Earnest Money Deposit (EMD) for Micro, Small and Medium Enterprises (MSMEs) in Tamil Nadu. Key points: 1) MSMEs located in Tamil Nadu are exempt from paying EMD when bidding on government tenders, by producing a Udyam Registration certificate or other valid registration. 2) The government has consolidated previous orders on EMD exemption and introduced new requirements like obtaining an undertaking from successful bidders to pay penalties for non-fulfillment of contract terms. 3) Definitions and classifications of MSMEs have been updated based on the latest Government of India guidelines incorporating investment

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Vijaya Chand
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238 views4 pages

Exemptionfrom Emd

This document summarizes new orders regarding exemptions from payment of Earnest Money Deposit (EMD) for Micro, Small and Medium Enterprises (MSMEs) in Tamil Nadu. Key points: 1) MSMEs located in Tamil Nadu are exempt from paying EMD when bidding on government tenders, by producing a Udyam Registration certificate or other valid registration. 2) The government has consolidated previous orders on EMD exemption and introduced new requirements like obtaining an undertaking from successful bidders to pay penalties for non-fulfillment of contract terms. 3) Definitions and classifications of MSMEs have been updated based on the latest Government of India guidelines incorporating investment

Uploaded by

Vijaya Chand
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ABSTRACT

Micro, Small and Medium Enterprises - Exemption from payment of Earnest


Money Deposit (EMD) in respect of tenders called for by Government
Departments, State Owned Corporations, Boards, Local Bodies,
Co-operatives, etc., - Proof of Micro, Small and Medium Enterprises - Udyam
Registration - Orders – Issued.
Finance (Salaries) Department
G.O.Ms.No.199 Dated: 27.06.2022
, – 13
திருவள்ளுவர் ஆண்டு-2053
Read:

1. G.O.(Ms)No.387, Finance (BPE) Department,Dated: 03.08.1998.


2. G.O.(Ms)No.390, Finance (BPE) Department, Dated: 27.09.2013.
3. Government of India Notification S.O.2119 (E),Dated: 26.06.2020.
4. From the Industries Commissioner and Director of Industries
and Commerce Letter Rc.No.765 / PDK2 / 2021, Dated,
19.01.2021 and 18.10.2021.
- oOo-

ORDER:-
In the Government Order first read above among other things, orders
were issued exempting the Small Scale Industrial Units, located within the
State and registered with Tamil Nadu Small Industries Development
Corporation or the National Small Industries Corporation (NSIC) or holding
permanent Registration Certificate from the District Industries Centers of
Directorate of Industries and Commerce from payment of Earnest Money
Deposit/Security Deposit in respect of those items for which the Registration
Certificate has been obtained and tenders called for by the State
Government Departments, State Public Sector Undertakings/Statutory
Boards, Local Bodies and Co-operatives etc., apart from making them
eligible for receiving the Tender Forms and other connected documents at
free of cost. Further, Small Scale Industrial Units located outside the State
and registered with National Small Industries Corporation were also eligible
for such concession except with regard to supply of Tender Forms and other
connected documents at free of cost. Subsequently, the concession of
remitting Security Deposit and availing cost free tender documents by State
Public Sector Undertakings, Small Scale Industries and Co-operatives has
been discontinued vide Government Letter No.12980/BPE/2004-1 dated
28.4.2004.

P.T.O.
-2-

2. Consequent to the enactment of Micro, Small and Medium


Enterprises Development Act, 2006, in the Government Order second above,
the Government have amended the Para 3(i) of Government Order first read
above duly exempting Small Scale Industrial Units from payment of Earnest
Money Deposit against production of a copy of the acknowledgement
obtained from the General Manager, District Industries Centre concerned
for filing of the Entrepreneur Memorandum Part - II. Besides, in the above
said Government Order, it has also been specifically indicated that the
purchasing department, may inspect the unit and satisfy themselves on the
line of activity pursued by the manufacturer, quality, production capacity
etc.,

3. In the Ministry of Micro, Small and Medium Enterprises,


Government of India Notification dated 18.9.2015, Entrepreneur
Memorandum has been replaced with 'Udyog Aadhaar Memorandum'.
Subsequently, the Ministry of Micro, Small and Medium Enterprises,
Government of India vide Notification dated 01.06.2020 has further
amended the classification of Micro, Small and Medium Enterprises based
on the composite criteria of investment in Plant and Machinery or
Equipment and Annual turnover as follows:-

Classification Micro Small Medium


Manufacturing Investment Investment Investment
and Services <Rs.1 crore <Rs.10 crore <Rs.50 crore
and turnover and turnover and turnover
<Rs.5 crore <Rs.50 crore <Rs.250 crore

4. Accordingly, orders were issued in G.O. (Ms.) No.69, Micro, Small


and Medium Enterprises [D(2)] Department, dated 24.10.2020 notifying the
changes in the classification of Micro, Small and Medium Enterprises based
on the above criteria. The existing practice of issuing certificate viz.,
'Entrepreneurs Memorandum Part II' and 'Udhyog Aadhar Memorandum'
have been replaced with 'Udyam Registration Certificate' for the registration
of Micro, Small and Medium Enterprises w.e.f 01.07.2020 vide notification
dated 26.06.2020 issued by the Ministry of Micro, Small and Medium
Enterprises, Government of India wherein it has been specifically indicated
that all the existing enterprises registered under Entrepreneurs
Memorandum Part II or Udhyog Aadhar Memorandum shall register again
on the Udyam Registration portal on or after 01.07.2020 and the existing
enterprises registered prior to 30.06.2020 shall continue to be valid only for
a period upto 31.03.2022 vide Notification issued by the Ministry of Micro,
Small and Medium Enterprises on 19.01.2022.
5. Consequent on the changes in classification of Micro, Small and
Medium Enterprises and introduction of 'Udyam Registration' by
Government of India in lieu of existing 'Udyog Aadhaar Memorandum' and
'Entrepreneur Memorandum Part-II', the Industries Commissioner and
Director of Industries and Commerce has requested the Government to
issue necessary amendment to G.O.(Ms.) No.387, Finance (BPE)
-3-

Department, dated 03.08.1998 and G.O.(Ms.) No.390, Finance (BPE)


Department, dated 27.09.2013 to substitute Udyam Registration in the
Government Orders to safeguard the interests of the Micro and Small
Enterprises in Tamil Nadu to participate in the tenders floated by the
Government Departments, State Public Sector Undertakings, Boards, Local
Bodies, Co-operatives etc.,

6. With regard to the matter pertaining to the exemption of Earnest


Money Deposit/Security Deposit to the Small Scale Industrial Units and
Public Sector Undertaking the Government have reviewed the orders issued
in the Government Orders read above in line with the provisions under Rule
14 (1) of Tamil Nadu Transparency in Tender Rules, 2000 and considered
that there is a need for issue of a single consolidated and comprehensive
order. Accordingly, the Government in supersession of the orders issued in
the Government Order first and second read above, pass the following
order:-
(i) "Micro and Small Enterprises located within the State of
Tamil Nadu are exempted from payment of Earnest Money
Deposit against the production of a copy of 'Udyam Registration
Certificate' or any other valid registration certificate/proof as
notified by the Government of India in respect of the items
manufactured by them for participation in the tenders floated by
the Government Departments, State Public Sector Undertakings,
Statutory Boards, Local Bodies, Co-operatives, Universities and
Societies formed by the Government and whenever it is deemed
necessary, the procuring entity may inspect the unit and satisfy
themselves with regard to verifying the credentials of the applicants
on the line of activity pursued by such manufacturers, quality and
production capacity and other relevant factors".
(ii) Procuring entities shall obtain an undertaking from the
successful bidders that they would pay penalty an amount
equivalent to Earnest Money Deposit/Security Deposit or an
amount equal to the actual loss incurred by the procuring entities
whichever is less in the event of non-fulfilment or non-observance
of any of the conditions stipulated in the contract.

(BY ORDER OF THE GOVERNOR)

N. MURUGANANDAM
ADDITIONAL CHIEF SECRETARY TO GOVERNMENT.

To
All Secretaries to Government, Chennai-9
All Departments of Secretariat, Chennai -9.
All Heads of the Departments.
The Chief Executive Officers of all the State Public Sector Undertakings/
Statutory Boards.
The Accountant General (A&E), Chennai-6/18.
All Sections in Finance Department, Secretariat, Chennia-9.
-4-

All Officers in Finance Department


All Finance Directors.
Finance (BPE) Department, Secretariat, Chennai-9.
Stock File /Spare Copies.

// Forwarded: By Order//

SECTION OFFICER.

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