Aqzar Raheel
Srinagar: The Jammu and Kashmir government has introduced an online cash-based system for depositing Earnest Money Deposit (EMD) and tender fees in all works departments, replacing the existing practice of using Bank Guarantees (BG), Fixed Deposit Receipts (FDR), Term Deposit Receipts (TDR) and Call Deposit Receipts (CDR).
According to a circular issued by the Finance Department, the move aims to streamline financial procedures, enhance transparency and ensure timely refund of EMD to unsuccessful bidders.
The government said online tendering through the JK Tenders portal has already been implemented successfully across the Union Territory. However, delays were being faced in the refund and release of EMD under the existing mechanism.
To address the issue, departments have been directed to establish centralized designated pooling bank accounts at the Head of Department (HoD) level for online receipt of bid security and tender fees in cash mode.
The circular stated that a system-enabled automatic refund mechanism will be put in place during bid evaluation for bidders whose tenders are rejected for being non-responsive or for not emerging as the lowest bidder.
In the case of successful bidders, the bid security amount will be retained and adjusted towards performance security during the contract period, including the defect liability period, it added.
The Finance Department has also directed all works departments to amend the Standard Bidding Documents (SBDs) for tenders floated during the financial year 2026-27 in line with the revised guidelines.
