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Glossary

GeM & procurement terms, explained

A plain-English reference for the acronyms you meet on a GeM bid.

EMD

Earnest Money Deposit — a refundable bid security. MSEs and DPIIT-recognised startups are often exempt.

PBG

Performance Bank Guarantee / performance security — lodged by the successful bidder to secure delivery.

BOQ

Bill of Quantities — the itemised list of goods/services with quantities the buyer wants priced.

MSE

Micro & Small Enterprise — eligible for purchase preference and EMD exemption under the MSE policy.

Udyam

The government registration that establishes MSE status, used to claim MSE benefits.

DPIIT Startup

Recognition that grants startups relaxation on prior turnover / experience and EMD exemption.

MII

Make in India — purchase preference to Class-I / Class-II local suppliers based on local content.

GFR

General Financial Rules — the finance rules (e.g. Rule 170 bid security, Rule 173 startup relaxation).

ATC

Additional Terms & Conditions — buyer-specific clauses that sit on top of the standard bid.

L1

The lowest-priced qualifying bidder; most GeM bids are evaluated least-cost (L1).

Corrigendum

An official amendment to a published bid — deadline, specification or terms may change.

Consignee

The office/officer who receives delivery. A bid can have several consignees with split quantities.

Reverse Auction (RA)

A live downward-bidding round after technical qualification to reach the final price.

Two-packet bid

Technical and financial bids are evaluated separately; financials open only for technically qualified bidders.

CRAC

Consignee Receipt and Acceptance Certificate — mandatory certificate generated on GeM within 10 days of delivery, triggering payment release.

PRC

Provisional Receipt Certificate — issued on physical receipt of goods by the consignee before inspection.

Caution Money

Refundable statutory deposit on GeM (₹5,000 for < ₹1 Cr; ₹10,000 for ₹1–10 Cr; ₹25,000 for > ₹10 Cr) to prevent frivolous bids.

OEM Panel

Brand owner control panel on GeM for validating brand identity, catalogue listings, and issuing reseller authorisations.

MAF

Manufacturer Authorisation Form — tender-specific authorization issued by an OEM to an authorized reseller/bidder.

PAC

Proprietary Article Certificate — procurement justification under GFR Rule 166 for single-OEM direct purchase.

IREPS

Indian Railways E-Procurement System — the national digital procurement portal for Indian Railways supplies, works, and services.

TReDS

Trade Receivables Discounting System — institutional platform for MSMEs to auction and discount approved government invoices.

LD

Liquidated Damages — pre-agreed financial deduction (usually 0.5% per week up to 10%) levied on delayed government deliveries.

Incident Management

GeM's formal dispute mechanism where buyers or GeM issue notices for delivery default, catalogue non-compliance, or policy breaches.

Need a term we haven't covered? Ask us or call +91 90963 85270.

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