Finance Department has issued Order, Order No G.O.(Ms)No.126 Dated : 11.4.2007 for Exemption from Payment of Earnest Money Deposit (EMD) in respect of Tenders called for by Government Departments, State Owned Corporations, Boards, etc. In Ref of G.O.Ms. No.387, Finance (BPE) Department, Dated: 03.08.1998.
In reference to the above subject matter the Order Issued by the Government are as below.
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The Rural Development and Panchayat Raj Department has requested for issue of orders, exempting the Self Help Groups (SHGs) from paying the Earnest Money Deposit / Security Deposit the cost of Tender Forms and other connected documents citing such concession to Small Scale Industrial units in respect of tenders called for by the State Government Departments / State Owned Public Sector Undertaking etc., and to issue necessary exemption under the TamilNadu Transparency in Tenders Act, 1998, in this regard.
2. As per the provisions of sub – rule (1) of rule 14 of the Tamilnadu Transparency in Tenders Rules, 2000 any category of tenderers can be specifically exempted by the Government from the payment of earnest money deposit. In the Government Order read above, among otherthings exemption has been granted from the Payment of Earnest Money Deposit to the Small Scale Industrial (SSI) Units registered with TamilNadu Small Industries Development Corporation (SIDCO) or National Small Industries Corporation (NSIC) in respect of those items for which the Registration Certificate has been obtained in respect of tenders called for by Government Departments, State Owned Public Sector Undertakings, Statutory Boards, Local Bodies and Co-operatives. On the same analogy, under sub – rule (1) of rule (14) of the TamilNadu Transparency in Tenders Rules, 2000 the Government specifically exempt the Self Help Groups (SHGs) who have passed the first as well as second grading conducted by the Project Officer (Mahilir Thittam), District Rural Development Agency from Payment of Earnest Money Deposit (EMD) in tenders called for by the State Government, State Owned Boards and Corporations etc., in respect of products actually manufactured by them or in respect of services actually rendered by them directly. The exemption will be made available for a period of one year and will be reviewed at the end of one year and suitable decision for further extention of the exemption will be considered based on the usefulness of such exemption.
(By order of the Governor )
SECRETARY TO GOVERNMENT