J&K makes online cash EMD mandatory for works tenders

Srinagar, Jun 2: The Jammu and Kashmir government has introduced a major change in its tendering system by making online cash deposits mandatory for Earnest Money Deposits (EMDs) and tender fees in all works departments across the Union Territory. The new mechanism replaces the existing practice of submitting EMDs through Bank Guarantees (BGs), Fixed Deposit Receipts (FDRs), Term Deposit Receipts (TDRs) and Call Deposit Receipts (CDRs), and has come into force with immediate effect.
The new system has come into effect immediately and is expected to ensure greater transparency, faster processing and timely refunds to bidders.
Officials said that while online tendering through the JK Tenders portal has already been successfully implemented across departments, delays were frequently reported in the refund or release of EMDs, particularly for unsuccessful bidders. To address these issues, the government has introduced a more efficient and automated framework.
“Under the revised mechanism, all bid security deposits and tender fees will be paid online in cash through the JK Tenders platform. The use of BGs, FDRs, TDRs and CDRs for EMD submission will no longer be permitted,” an official said.
He said that to facilitate monitoring and accounting, every works department has been directed to create a centralised, designated pooling bank account at the Head of Department (HoD) level. All EMDs and tender fees associated with works tenders across Jammu and Kashmir will be routed through these accounts.
As per the new system, tender fees collected in the pooling accounts will be treated as revenue receipts and deposited under the relevant departmental heads after due authorisation. A key feature is the automatic refund of EMDs. During bid evaluation, the portal will automatically process refunds for bidders who are declared non-responsive or who do not emerge as the lowest bidder (L1), except in cases where forfeiture provisions apply.
The official said the automated process will significantly reduce delays and ensure quicker reimbursement to unsuccessful bidders.
“For successful bidders, however, the EMD amount will be retained and adjusted as a Performance Security Deposit for the duration of the contract, including the defect liability period,” he said. “The amount will be transferred from the centralised pooling account to the concerned division’s Performance Security Deposit Head after approval from the HoD.”
Any additional amount required towards performance security will have to be deposited separately by the successful bidder in cash, the official added.
The government has also directed all works departments to revise their Standard Bidding Documents (SBDs) for tenders to be floated during the 2026-27 financial year. The updated documents will include provisions for online cash payment of EMDs, tender fees and IT service charges, along with detailed guidelines for refund and adjustment procedures.
The officials said the necessary digital infrastructure for online cash deposits and performance security transactions through the JK Tenders platform is already in place. The new instructions have been enforced with immediate effect. (KNO)