Insurance Surety Bond for SECI Tenders: Format 16, Format 27, and Submission Checklist

TL;DR

• SECI publishes three standardised ISB formats in its tender annexures: Format 16 and Format 26 for EMD, and Format 27 for performance security. Using the wrong format at the wrong stage is an automatic compliance failure.

• The EMD ISB must be valid for 30 days beyond the bid validity date stated in the NIT. Issuing an ISB with validity equal to bid validity only is one of the most common causes of non-compliant bid security.

• SECI requires bidders to complete an 11-point verification checklist alongside the ISB. A single failure on stamp paper compliance or a deviation from the bond proforma text can result in the bond being returned.

• After uploading online, the original physical ISB must reach SECI's office within two working days. Online upload alone is not sufficient and has caused bid rejections for first-time submitters.

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SECI is among the few public procuring agencies in India that publishes standardised insurance surety bond formats directly in its tender annexures. Format 16 for EMD, Format 26 as an alternate EMD format, and Format 27 for performance security are embedded in active SECI tenders and available on seci.co.in. The Ministry of Power's April 2026 directive has since mandated ISB acceptance across solar, wind, FDRE, BESS, pumped storage, and transmission procurement nationwide. SECI remains the benchmark because its formats, verification checklist, and submission requirements are the most operationally defined of any central RE procurer.

This article is a submission guide, not a policy overview. It covers which format to use at which stage, how to calculate ISB validity correctly, what SECI's 11-point verification checklist requires, stamp paper rules, and the offline delivery requirement that first-time submitters consistently miss. If you are comparing insurance surety bonds to bank guarantees in the power sector context, see insurance surety bonds in India's power sector.

Why SECI Is the Reference Case for ISB Adoption in Renewable Energy

SECI has tendered over 100 GW of renewable energy capacity and operates under MNRE as India's central procurement agency for solar, wind, hybrid, FDRE, and storage projects. It accepts three instruments for EMD: a bank guarantee, a Payment on Order Instrument issued by PFC or REC, or an insurance surety bond. The ISB is not a contingency option. It stands on equal footing with the other two.

SECI's approach to ISBs is operationally mature. Rather than simply adding ISB acceptance language to boilerplate tender clauses, SECI published named formats with precise legal text, stamp paper instructions, a verification checklist, and offline submission rules. This is exactly the structure the GFR 2022 amendment and the September 2024 DFS directive intended. Other procurers updating their SBDs in response to the MoP April 2026 directive are now looking to SECI's formats as a template. For a broader view of which PSUs currently accept ISBs, see PSUs accepting insurance surety bonds in India.

The Three SECI ISB Formats: Which One Applies to You

SECI uses three ISB formats across its tender lifecycle. Each applies to a distinct stage. Selecting the wrong one is treated as a document deficiency.

Format 16: ISB for EMD (Bid Security)

Format 16 is the standard ISB for bid security. It is used at the submission stage, before bid evaluation or contract award.

Key terms from the SECI proforma:

• Unconditional and irrevocable. SECI can call the bond without giving reasons. The insurer has no grounds to decline payment once the bond is invoked.

• Validity: the ISB must remain valid for 30 days after the last date for which the bid is valid. The 30-day buffer is mandatory, not discretionary.

• Extension: the ISB can be extended for up to one year at the Supplier's written request.

• Parties: SECI is the Beneficiary; the Bidder is the Principal; the Insurance Company is the Surety.

• The insurer must be authorised by IRDAI to issue surety insurance contracts.

Format 26: Alternate ISB for EMD

Format 26 is a second EMD ISB format used in specific SECI tender categories, including certain FDRE tender types. It is structurally similar to Format 16 but is a distinct proforma. The tender's SBD and annexure list will specify whether Format 16 or Format 26 applies. Always check the annexure index. Do not assume Format 16 is universal across all SECI tenders.

Format 27: ISB for Performance Security

Format 27 is commissioned post-award, before or at the point of contract or PPA execution.

Key terms from the SECI proforma:

• Value: 5% of the Contract Price (confirmed in Format 27 Note 1). This applies regardless of technology type.

• Unconditional: SECI may invoke the bond at any time. The insurer cannot refuse or delay payment and cannot revoke the bond without SECI's prior written consent.

• Execution: the last page must be signed by the executant officer and countersigned by two witnesses.

• The insurer must remain solvent and authorised by IRDAI throughout the bond's validity.

• Valid through contract completion plus the defect liability period as specified in the contract.

Format Selection at a Glance

Stage	Format	Amount	What Triggers It
Bid submission	Format 16 or Format 26	Per-MW EMD rate per NIT	NIT or SBD annexure specifies which
Post-award	Format 27	5% of Contract Price	LOA or PPA execution

EMD and Performance Security Quantum by Technology

SECI specifies EMD in per-MW or per-MWh terms in the NIT. Performance security under Format 27 is fixed at 5% of the Contract Price across all technology types. The figures below are drawn from SECI FDRE tender documents and reflect verified published rates.

Technology	EMD	Performance Bank Guarantee (PBG)
Solar (FDRE-VIII)	₹9.54 lakh per MW	₹24.20 lakh per MW
Wind / Other RE	Per tender NIT	₹34.20 lakh per MW
ESS / BESS	Per tender NIT	₹6 lakh per MWh
Performance Security (all technologies)	Not applicable	5% of Contract Price

EMD rates are tender-specific and are revised periodically by SECI. The figures above are from FDRE category tenders. Always verify the quantum stated in the NIT for the specific tender you are bidding on before commissioning an ISB.

For context on how ISB premiums compare to the cash margin tied up in a bank guarantee across large MW-scale SECI bids, see cost of an insurance surety bond in India.

SECI's 11-Point ISB Verification Checklist

SECI requires bidders to submit a completed verification checklist alongside the ISB at the time of physical document delivery. The checklist is provided in the tender annexures. Each item is a binary pass or fail. A single failure is sufficient grounds for SECI to return the ISB as non-compliant.

1. Stamp paper carries the correct stamp duty value and is properly affixed to the ISB document.

2. The date of stamp paper purchase predates the ISB execution date. A stamp paper purchased after the bond was executed makes the bond invalid.

3. The date and purpose of the stamp paper are endorsed on the reverse of the stamp paper.

4. The executant officer's full name appears on the stamp paper.

5. The executant officer's designation appears on the stamp paper.

6. The executant officer's Power of Attorney number appears on the stamp paper.

7. Each page of the ISB is initialled by the executant officer.

8. The last page of the ISB is signed in full by the executant officer and countersigned by two witnesses with their names and addresses.

9. The ISB text is a verbatim match with the SECI-prescribed proforma. No paraphrasing, no additions, no omissions. Even minor wording changes constitute a deviation.

10. All factual details are accurate: NIT number, tender number, bond amount, beneficiary name, and ISB validity date.

11. All overwriting is authenticated by the executant officer with initials and date. Any correction that is not authenticated is treated as an irregularity.

Items 9 and 10 are the most frequent failure points. Print the relevant SECI proforma and compare it line by line with the issued bond before completing the checklist. Any discrepancy in bond text is a checklist failure at item 9.

Stamp Paper Rules for SECI ISBs

SECI ISBs must be executed on non-judicial stamp paper or e-stamp paper. The applicable stamp duty rate is the higher of:

• the rate in the state where the ISB is submitted or acted upon, or

• the rate in the state where the ISB is executed by the insurer

The stamp paper may be purchased in the name of the Supplier or the Insurer. If your insurer executes the bond in Maharashtra and you are submitting it to SECI's Delhi office, check stamp duty rates for both Maharashtra and Delhi and apply whichever is higher. Underpaying stamp duty is a checklist failure at item 1 and will result in the ISB being returned.

E-stamp paper is accepted at SECI provided the e-stamp certificate is attached and the stamp duty amount is correctly computed. The state-specific verification portal reference should be noted on the certificate.

For context on how the ISB clause appears in government tender documents and what to look for when reviewing an SBD, see insurance surety bond clause in government tenders.

ISB Validity: How to Calculate the Correct Expiry Date

For EMD: Format 16 and Format 26

The ISB must remain valid for 30 days after the last date of the bid validity period stated in the NIT.

Worked example: if the NIT states bid validity of 180 days from the date of submission and the submission date is 1 August 2026, the bid validity expiry is 28 January 2027. The ISB must be valid until at least 27 February 2027, which is 30 days beyond bid validity expiry.

The most common error is issuing an ISB with validity equal to the bid validity period only, without the 30-day extension. This makes the ISB non-compliant from the moment it is submitted.

If SECI issues a corrigendum extending the bid validity period, the ISB must be extended correspondingly. Format 16 and Format 26 allow for extension requests of up to one year per request.

For Performance Security: Format 27

The ISB must remain valid through the contract completion date plus the full defect liability period. Both dates are specified in the LOA or contract. The insurer must remain IRDAI-authorised throughout the validity period.

The 2-Working-Day Offline Submission Requirement

SECI's e-procurement portal accepts digital upload of ISB documents before the bid deadline. Uploading the scanned document online satisfies the portal requirement. It does not satisfy the submission requirement.

The original physical ISB document, on stamp paper, must be delivered to SECI's office within two working days of the online submission date. This requirement is stated in SECI's tender conditions and applies regardless of geography.

What to include in the physical submission:

• Original ISB executed on stamp paper (Format 16, Format 26, or Format 27 as applicable)

• Completed 11-point verification checklist, signed

• Supporting Power of Attorney documents referenced in the ISB, if specified in the tender

Plan the courier timeline from the insurer's office to SECI at the point of instructing the insurer, not on the day of upload. Insurers executing in cities other than Delhi will need a day or more to dispatch. Proof of delivery should be retained.

This single requirement has caused more bid rejections among first-time SECI ISB submitters than any other. The online upload creates a false sense of completion.

Step-by-Step: Submitting Your ISB in a SECI Tender

• Step 1: Read the NIT Identify which EMD format applies (Format 16 or Format 26), the per-MW EMD quantum, and the bid validity period. If the tender is silent on which EMD format to use, check the annexure index.

• Step 2: Calculate ISB validity Add 30 days to the bid validity period end date. This is the minimum ISB expiry date for the EMD bond.

• Step 3: Confirm stamp duty Check rates for both the state of execution and the state of submission. Apply whichever is higher.

• Step 4: Commission the ISB Instruct an IRDAI-authorised insurer to issue the bond. The bond text must match the SECI proforma verbatim. For guidance on the application and issuance process, see how to apply for an insurance surety bond in India.

• Step 5: Run the verification checklist Work through all 11 items before the executant officer signs. Flag any discrepancy before the bond is dispatched.

• Step 6: Upload online Submit the scanned ISB via SECI's e-procurement portal before the bid deadline.

• Step 7: Dispatch the original Courier the original ISB, completed checklist, and PoA documents to SECI's office. This must arrive within two working days of the upload date. Retain the proof of delivery.

• Step 8: Post-award — commission Format 27 Once you receive the LOA, commission Format 27 at 5% of the Contract Price. Apply the same stamp paper and checklist rules. Deliver before the contract or PPA execution date.

For guidance on eligibility requirements before approaching an insurer, see insurance surety bond eligibility in India.

About axiTrust

axiTrust is a technology and consulting platform that helps contractors, developers, and EPC companies understand and manage insurance surety bond requirements across government and public sector procurement in India. axiTrust works across SECI, NTPC, NHAI, state DISCOMs, and other central and state procuring agencies.

Talk to an axiTrust consultant before your next SECI tender submission.

FAQs

Can I use an insurance surety bond for both EMD and performance security in a SECI tender?

Yes. Format 16 or Format 26 covers EMD at bid stage; Format 27 covers performance security post-award. Both are accepted in the same tender.

Which insurance companies are authorised to issue ISBs for SECI tenders?

Only insurers authorised by IRDAI under the Surety Insurance Contracts Guidelines. IRDAI publishes the list of authorised insurers on its website.

What happens if the ISB text does not match the SECI proforma exactly?

SECI will flag it as non-compliant at checklist item 9. The bond will be returned and the bid may be treated as submitted without valid bid security.

Does SECI accept ISBs for wind, hybrid, and BESS tenders, or only solar?

ISBs are accepted across all SECI procurement categories including solar, wind, FDRE, hybrid, and BESS.

Is physical delivery of the original ISB mandatory after the online upload?

Yes. The original must reach SECI's office within two working days of online submission. Digital upload alone does not fulfil the submission requirement.

References

• SECI. Form of Insurance Surety Bond towards EMD (Format 16). Solar Energy Corporation of India Limited: https://www.seci.co.in/Upload/Tender/SECI000197-1718503-AnnexureItotheAmendment01.pdf

• SECI. Form of Insurance Surety Bond towards Performance Security and Verification Checklist (Format 27). Solar Energy Corporation of India Limited: https://www.seci.co.in/Upload/Tender/SECI000128-4710908-Annexure2toAmdt02.docx.pdf

• SECI. Form of Insurance Surety Bond towards EMD (Format 26). Solar Energy Corporation of India Limited: https://www.seci.co.in/Upload/Tender/SECI000128-4710908-Annexure1toAmdt02.pdf

• Mercom India. Government Permits Use of Insurance Surety Bonds in Power Project Bids: https://cdnbbsr.s3waas.gov.in/s3716e1b8c6cd17b771da77391355749f3/uploads/2026/05/20260507651808978.pdf

• Indian Infrastructure. Promising Instrument: Surety Bonds Emerge as a Preferred Option for the Infrastructure Sector. July 2026. https://indianinfrastructure.com/2026/07/03/promising-instrument-surety-bonds-emerge-as-a-preferred-option-for-the-infrastructure-sector/

• Ministry of Finance, Department of Expenditure. Amendment to General Financial Rules 2022. https://doe.gov.in/files/procurement-policy-division/Amendment_to_General_Financial_Rules_2017.pdf

• Solar Energy Corporation of India Limited. About SECI. https://www.seci.co.in/