Q&A Archive · 9 October 2026

Furniture Buyer Questions — 9 October 2026

Five real questions on GeM tender mechanics, answered on this date and archived here once the next day's set went live.

What is an EMD (Earnest Money Deposit) in a government furniture tender, and who can be exempted from it?

An EMD is a deposit a bidder puts up — often as a bank guarantee — to show they're serious about a government tender, refunded if they aren't awarded the contract. Registered MSE manufacturers (not traders reselling someone else's furniture) can often qualify for an EMD exemption with the right supporting documentation, but this must be confirmed against that specific tender's terms rather than assumed.

What's an ePBG in a furniture tender, and what percentage and duration is typical?

An ePBG (electronic Performance Bank Guarantee) is security the winning bidder provides to guarantee contract performance, released after the guarantee period ends. Published government tenders show this commonly set around 3-5% of contract value, held for a duration (often well over a year) stated in the specific bid document — always check the exact figures for your tender rather than assuming a standard rate applies.

What's the practical difference between a manufacturer and a trader for GeM tender eligibility?

A manufacturer makes the furniture itself, while a trader resells furniture made by someone else — and this distinction matters directly for benefits like MSE-category EMD exemptions, which are typically available to manufacturers (and service providers) but not to traders. Confirm which category you fall into under a specific tender's terms before assuming an exemption applies.

Can a bidder request a lower ePBG percentage on a government furniture tender?

A bidder can ask, but buyers are not obliged to agree — published tender clarifications show requests to reduce the ePBG percentage are often declined with "no change as per RFP." Treat the stated percentage as the real cost of bidding rather than planning around a reduction that may not be granted.

What does "Make in India" preference mean in a government furniture tender?

It generally gives purchase preference to bidders offering goods with a higher proportion of domestic manufacturing content, as defined by the specific policy the tendering department applies. The exact local-content threshold and how it's verified varies by tender, so check the individual bid document's definition rather than assuming a single fixed national rule.

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