Dwivedi, who turned professional at the start of the season, is now six-under 207 with rounds of 71, 67 and 69 and is lying tied 10th.
He is four shots behind the leader, Malaysia's Gavin Green, who is at 10-under after a round of 68.
The other two Indians who made the cut, Feroz Singh Garewal (69-70-72) and Aman Raj (69-71-72) are lying tied 31 and tied 37, respectively.
Green also gave himself a fighting chance to strengthen his bid for the Olympic Games in August as he sits at 60th and final position on the current rankings. The cut-off date to Rio de Janeiro is on July 11.
Singapore's Johnson Poh carded a 67 for second place while American Paul Harris (68), Thailand's Panuwat Muenlek (67), Malaysian duo of Nicholas Fung (69) and Sukree Othman (70) shared third on 205 at the RM 200,000 (approx. USD46,600) event.
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