TENDER FOR GAS CHROMATOGRAPH FOR NATURAL GAS PIPELINE ... · tender for gas chromatograph for...

TENDER FOR GAS CHROMATOGRAPH FOR NATURAL GAS PIPELINE PROJECT

GAIL (India) Limited

FROM IBRAHIMPUR TO DHOLPUR POWER PLANT

Bid No. 05/51/23JV/GAIL/060

MECON LIMITED

GAIL (India) Limited (A Govt. of India Undertaking)

NEW DELHI, INDIA

NATURAL GAS PIPELINE PROJECT FROM IBRAHIOMPUR TO DHOLPUR

POWER PLANT

BID DOCUMENT FOR PROCUREMENT OF

GAS CHROMATOGRAPH

UNDER INTERNATIONAL COMPETITIVE BIDDING

Bid Document No.: 05/51/23JV/GAIL/060

VOLUME – I OF II

PREPARED AND ISSUED BY

MECON LIMITED (A Govt. of India Undertaking)

Delhi, India

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MECON LIMITED

INDEX

OF BID DOCUMENT

VOLUME – I OF II Section-I : Invitation for bids (IFB) Section-II : Instructions to Bidder (ITB) Section-III : General Conditions of Contract (GCC – Goods) Section–VIII : Attachment – I to GCC, Forms & Formats

VOLUME – II OF II Section-IV : Special Conditions of Contract (SCC) Section-V : Brief Summary of Agreed Terms & Conditions Section-VI : Material Requisition and Technical Specification Section-VII : Bid Form Section-IX : Price Schedule / SOR Section-X : Drawings

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MECON LIMITED

SECTION-WISE CONTENT LIST

Section – I – Invitation for Bid – Volume I of II

Section – II - INSTRUCTION TO BIDDER – Volume I of II A. GENERAL 1. Scope of Bid 2. Eligible Bidder 3. One Bid per Bidder 4. Bidder Eligibility

5. Cost of Bidding B. BIDDING DOCUMENT

6. Content of Bidding Document 7. Clarification of Bidding Documents 8. Amendment of Bidding Documents C. PREPARATION OF BIDS 9. Language of Bid 10 Documents Comprising the Bids 11. Bid Form & Price Schedule 12. Bid Prices 13 Bid Currencies 14 Documents Establishing Bidder's Eligibility and Qualification 15 Documents Establishing (Goods' Eligibility and Conformity) to Bidding Documents 16 Period of Validity of Bids 17 Bid Security 18. Pre-Bid meeting 19 Format and Signing of Bid 20 Zero Deviation 21 E-Payment 22 Agent/ consultant/ Representative/ Retainer/ Associate D. SUBMISSION OF BIDS 23. Sealing and marking of bids 24 Deadline for Submission of Bid 25 Late Bids 26 Modification And Withdrawal of Bids E. OPENING AND EVALUATION OF BIDS 27 Bid Opening 28 Process to be Confidential 29 Contacting the Purchaser 30 Preliminary Examination of Bids

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MECON LIMITED

31 Price-Bid Opening 32 Arithmetic Corrections 33 Conversion To Single Currency 34 Evaluation And Comparison of Bids 35 Domestic Preference 36 Purchase Preference

F. AWARD OF CONTRACT 37 Post Qualification 38 Award Criteria 39 PURCHASER's Right to Vary Quantities at Time of Award 40 PURCHASER's Right to Accept Any Bid and To reject Any or All Bids 41 Notification of Award/ Fax of Intent 42 Acceptance of Purchase Order 43 Performance Guarantee 44 Income Tax Liability 45 Corrupt or Fraudulent Practices

Section – III – General Conditions of Contract-GOODS – Volume I of II 1. Definitions 2. Seller to inform 3 Application 4. Country of origin 5. Scope of Contract 6. Standards 7. Instructions, direction & correspondence 8. Contract Obligations 9. Modification in Contract 10. Use of Contract Documents & Information 11. Patent Rights, Liability & Compliance of Regulations 12. Performance Guarantee 13. Inspection, Testing & Expediting 14. Time Schedule & Progress Reporting 15. Delivery & Documents 16. Transit Risk Insurance 17. Transportation 18. Incidental Services 19. Spare Parts, Maintenance Tools, Lubricants 20. Guarantee 21. Terms of Payment 22. Prices 23. Subletting & assignment 24. Time as Essence of Contract 25. Delays in the Seller’s Performance 26. Price Reduction Schedule for Delayed delivery 27. Rejections, Removal of rejected equipment & replacement 28. Termination of Contract 29. Force Majeure






MECON LIMITED

30. Resolution of disputes/arbitration 31. Governing Language 32. Notices 33. Taxes & Duties 34. Books & Records 35. Permits & Certificates 36. General 37. Import License 38. Fall clause 39. Publicity & Advertising 40 Repeat Order 41 Limitation of Liability Section – IV – Special Conditions of Contact – Volume II of II

1. Scope of Supply 2. Delivery Schedule 3. Payment terms 4. Price Reduction Schedule 5. Port of Destination 6. General Information – Consignee Address, Paying Authority etc.

Section – V – Brief Summary of Agreed Terms – Volume II of II & Conditions Section – VI – Material Requisition and – Volume II of II Technical Specification Section – VII – Bid Form – Volume II of II Section – VIII – Attachment – I to GCC – Volume I of II – Forms and Format F – 1 Bidder’s General Information F – 2 Bid Form F – 3 List of Enclosures with Part – I (Unpriced Bid) F – 3A Annual Turnover F – 4 Proforma for Bank Guarantee for Earnest Money Deposit/ Bid Security F – 4A Proforma for Letter of Credit for Bid Security F – 5 Proforma for Letter of Authority F – 6 No Deviation Confirmation F – 7 Certificate F – 8 Proforma for Bank Guarantee for Performance Guarantee F – 9A Packing, Marking and Shipping Instructions

(for ICB Tenders) F – 9B Packing, Marking and Shipping Instructions

(for Domestic Tenders)

Section – IX – Price Schedule / Schedule of Rates (SOR) – Volume II of II

Section – X – Drawings – Volume II of II






MECON LIMITED

SECTION – I INVITATION FOR BIDS (IFB)

BID DOCUMENT NO.: 05/51/23JV/GAIL/060 Date: 17.06.2006 To, Dear Sir, M/s MECON LIMITED, who has been retained by GAIL (India) Ltd., (A Govt. of India Undertaking) as a consultant for “ the Project of Natural Gas Pipeline Project from Ibrahimpur to Dholpur Power Plant”, invites sealed bids for the item(s) in complete accordance with the Bid Documents/ Attachments on behalf of GAIL (India) Ltd.

The salient terms and conditions of the bid are stated below: I. PROJECT : II. TYPE OF BID : International Competitive Bidding

III. ITEM(S) : GAS CHROMATOGRAPH IV. DELIVERY PERIOD : Indian Bidders within 22 (Twenty Two) weeks from

date of FOI on FOT site basis : Foreign Bidders within 18 (Eighteen) weeks from

date of FOI on FOB port of exit V-A. EARNEST MONEY/ BID : Indian Bidder : Rs.70,000/- by BG/ Demand Draft Security to be in favour of GAIL (India) Limited & payable at

Delhi Foreign Bidder : USD 1522 by BG/DD to be in favour

of GAIL (India) Limited & payable at New Delhi V-B. BID SECURITY VALIDITY : 6(SIX) months from final bid due date

VI. DUE DATE OF SUBMISSION : 15.07.2006 at 15.00 hrs. OF BID VII. BID VALIDITY : 4(four) months from the final due date VIII. TECHNO-COMMERCIAL BID : 15.07.2006 at 1600 Hrs. (in presence of authorized

OPENING DUE DATE & TIME representative of bidders).

Natural Gas Pipeline Project from Ibrahimpur to DholpurPower Plant

INVITATION FOR BIDS (IFB)

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GAIL (India) Limited Bid No


. 05/51/23JV/GAIL/060 MECON LIMITED



IX. VENUE : Address & Contact Nos. given at Sl. No. XIII. X. TENDER FEE (non : NOT APPLICABLE Refundable)

XI. DATE & PLACE OF PRE BID : 01.07.2006 at 1100 Hrs.

MEETING Venue as given at Sl. No. XIII

XII. BID EVALUATION : Item wise Basis CRITERIA

XIII. ADDRESS FOR : A.K. Sharma, DGM I/c ( Contracts) CORRESPONDENCE MECON LIMITED & SUBMISSION OF BID 15th Floor, Scope Minar North Tower DOCUMENT Laxmi Nagar Distt. Centre Delhi – 110 092 Ph. No. 91-11-2204 1468 Fax No. 91-11-22041214 XIV. BIDDER ELIGIBILITY : Annexure – I to IFB CRITERIA XV. OTHERS:

1.0 Bid Document can be purchased from [Name & Address detailed at XIII above] on any working day

from 1000 hours to 1600 hours against a written request and payment of requisite tender fee as specified in Clause XI of IFB by crossed bank draft from a first class International Bank or an Indian Scheduled Bank, in favour of MECON LIMITED, payable at Delhi.

The bidder has also to submit an undertaking that they have not been banned or delisted by any

Government or Quasi-Government agencies or Public Sector Undertaking. If this undertaking is not furnished the bid document shall not be issued to the bidder.

In case the bidder wishes to download the Bidding Document from GAIL's/MECON web-site the same downloaded bid document can be submitted with an undertaking that the contents of the Bidding Document have not been altered or modified.

2.0 Accredited representatives of foreign bidders in India are also permitted to purchase the bid document on

behalf of foreign bidder on payment of requisite document fee in Indian Rupees. The bid of foreign bidder shall be evaluated only if the bid is accompanied by the prescribed bid document fee in the form of demand draft in US Dollars after which the fee deposited by Indian representative shall be refunded. Bid submitted by bidders, who have not purchased the bid document either directly or through their authorised representative will be rejected.

3.0 The Governments Departments are exempted from payment of tender fee. In the event a particular tender

is cancelled, the tender fee will be refunded to the concerned Bidders. 4.0 Bid Document is non-transferable. 4.1 Bidder must buy the bid document in his own name and submit the bid directly.

Bids received from bidders in whose name bid document has been purchased shall only be considered.





MECON LIMITED 5.0 Bids complete in all respects should reach on or before the BID DUE DATE AND TIME. Bids through

Fax/ E-mail shall not be considered.

Bidder may depute their representative with proper authorisation letter to attend of techno-commercial opening of bids.

6.0 The Bid Document calls for offers on single point "Sole Bidder / Leader of Joint Venture/ Leader of

Consortium" responsibility basis.

Order will be placed on the " Sole Bidder / Leader of Joint Venture/ Leader of Consortium " alone (in whose name the bid document has been issued) who will be responsible for all contractual purposes.

Further the bidders are advised to ensure that their offer is on single bidder responsibility basis and in total compliance of scope of supply as specified in Bid Document.

7.0 The bid should be prepared by the " Sole Bidder / Leader of Joint Venture/ Leader of Consortium " and

should be sent to MECON directly. MECON / GAIL reserve the right to reject offers made by intermediaries representatives. The bid should be submitted to only at the designated place mentioned at Sl. No.- XIII (MECON, Delhi). Bid submitted at GAIL’s office or at any other place shall not be considered.

8.0 Bidder shall ensure that Bid Security having a validity of 6(SIX) months from the bid due date, must

accompany the offer in the format made available in the Bid Document. 9.0 This Invitation for Bids (IFB) is an integral and inseparable part of the enclosed Bid Document. 10.0 MECON / GAIL reserves the right to accept or reject1 any or all offers without assigning any reason,

whatsoever. 11.0 MECON / GAIL reserves the right to allow Purchase preference to Public Sector Undertakings as

admissible under the prevailing policy. 12.0 Copy of Bidding Document for reference is available at MECON, at the address given hereinabove.

The complete Bidding Document is also available on the web site of MECON Limited (www.meconlimited.com) and GAIL’s website www.gailonline.com

13.0 SEALING & MARKING OF BIDS

Bids should be submitted in complete accordance with the bid documents / attachments separately in three parts in sealed envelopes super-scribed with the Bid Document Number, due date, item and nature of bid (un-priced, priced), as follows : Part- I : UNPRICED BID Part- II : PRICED BID Part- III : BID SECURITY The three envelopes, containing Part-I, Part-II and Part-III of offer, shall be duly sealed and respective cut-out slip enclosed with this letter as Appendix-A shall be pasted on each envelop. Name & address of the bidder shall be mentioned on each cut-out slip. These three sealed envelopes shall be further kept in a larger envelope & which shall also be duly sealed. Cut-out slip meant for complete offer shall be pasted on it with name and complete address & contact number of the bidder.

14.0 In case you download the tender document and interested to quote, please intimate to us showing



http://www.gailonline.com/





MECON LIMITED

your interest immediately alongwith complete contract address, phone no., fax no., e-mail etc. for correspondence. Owner will inform about Addendum, if any to those who have furnished above information. However, information about Addendum shall also be available on MECON’s and GAIL’s websites as an when these are issued

15.0 ZERO DEVIATION TENDER

Bidder’s Bid shall be considered non-responsive and rejected, if deviations are taken to the under mentioned provisions of Bid Documents by the Bidder:-

i) Do not meet BEC Criteria ii) Bid Security iii) Performance Security (Contract Performance Bank Guarantee), 10% of Contract/Order value iv) Delivery Period v) Terms of Payment vi) Period of validity of bids vii) Force Majeure viii) Resolution of Dispute/Arbitration ix) Termination of Contract, x) Warranty and Guarantee xi) Offer not submitted for complete scope of work xii) Firm prices xiii) Prices not quoted as per Schedule of Rates formats. xiv) Bidder have been banned by Government of India or any its Agency/ Undertaking/ Department

of Government of India. xv) Bidders is under liquidation. xvi) Bidder is under litigation which owner’s considers a disqualification. xvii) Bids not conforming to technical specification/requirements. xviii) Any other such provisions if specifically stipulated elsewhere in the Bid Document. xix) Price Reduction Schedule.

THIS IS NOT AN ORDER

Yours faithfully, for and on behalf of GAIL (India) Limited

for MECON LIMITED (A.K. Sharma)

DGM I/c (Contracts) Encl. 1. Appendix – A - 4(four) nos. of Cut-Out slips to be pasted on different sealed envelops of the

offer. 2. Vol.-I of II & Vol.-II of II of the Bid Document. Note: Please acknowledge the receipt of the bid document and confirm your intention to quote or not within 7(seven) days. In case not intending to quote then please give reasons and also please return the tender document to us.







MECON LIMITED

ANNEXURE-I 1.0 SCOPE OF SUPPLY

ONLINE GAS CHROMATOGRAPH Line Size

NB Flow (MMSCMD) Item No.

Inlet Outlet Min Maximum

Inlet Pressure kg/cm2(g)

ANSI Rating

Qty. (Nos.)

1.0 10” 10” 0.50 1.8 28 300# 1

2.0 BIDDER ELIGIBILITY CRITERIA 2.1 Technical 2.1.1 Bidder shall be a regular manufacturer of ONLINE GAS CROMATOGRAPH

suitable for custody transfer application for hydrocarbon/ natural gas services. 2.1.2 The GAS CHROMATOGRAPH (GC) shall consist of Sampling System with

Calibration & Carrier Gas Cylinders in the Field and Programmable Control Unit in the Control room having online communication with Field Sampling System.

2.1.3 The Bidder should have designed, manufactured, tested and supplied at least 1

No. GAS CHROMATOGRAPH (GC) suitable for custody transfer services in any of the last five years reckoned from the date of commencement of issue of this tender enquiry.

2.1.4 The GC offered by the Bidder shall be from his existing range of production. 2.1.5 For Authorized Supplier

In case the manufacturer(s) who do not submit bid directly as a matter of their corporate policy, they may submit bid through their authorized/ accredited trading house/ suppliers. In such cases, the concerned trading house/ supplier may submit the offer as “Bidder” subject to fulfilling the following criteria:

Bidder shall supply the GC of the manufacturer who meets the qualification criteria mentioned at Clauses 2.1.1 to 2.1.4 above.

The Bidder shall furnish an authority certificate from the manufacturer confirming the Bidder’s status as their authorized/ accredited supplier/ trading house. The authority certificate shall be valid up to the completion of tenure of the order in accordance with the Bidding Document.

The Bidder shall furnish from manufacturer, a certificate indicating that the manufacturer as a corporate policy does not quote directly and their materials are quoted through authorized/ accredited supplier/ trading house only.

One manufacturer can quote through only one supplier and a supplier shall






MECON LIMITED

offer product of only one manufacturer.

The bid shall be liable for rejection in case of change of the proposed manufacturer after submission of the bid.

2.2 Bidders should not be associated or have been associated in the past, directly

or indirectly, with a firm or any of its affiliates which have been engaged by the Purchaser to provide consulting services for the preparation of the design, specifications and other documents to be used for the procurement of the goods to be purchased under this Invitation for Bids.

2.3 The Bidder shall not be under a declaration of ineligibility by Purchaser for

corrupt and fraudulent practices till award of work. 2.4 The Bidder is not put on holiday by GAIL or black listed by any Government

Department/ Public Sector till award of work. 2.5 Financial 2.5.1 Bidder should have achieved minimum annual turnover of Rs.17.50 Lacs (US$

38045) in any one of the last three financial years i.e. 2002-03, 2003-04, 2004-05.

2.5.2 Net worth of the bidder should be positive as per the last audited financial

statement 2004-2005. 2.5.3 Return on the equity of the Bidder should be positive as per the last audited

financial statement 2004-2005. 2.5.4 The Bidder should have minimum working capital of Rs. 3.50 lakhs (US$

7610) as per the last audited financial years i.e. for the financial year 2004-2005. If the bidder’s working capital is inadequate, the bidders should supplement this with a letter from the vendor’s bank, having net worth not less than Rs. 100 crores/ US$ 22.78 million, confirming the availability of line of credit to cover the inadequacy of previous year i.e. 2004-2005 and meet the current working capital requirement.

Bidder shall meet the technical, as well as, commercial qualification criteria as

stated above. Documentary evidences viz. detailed Purchase Order copies furnishing technical data as asked vide clause no. 2.1 above, declaration against clause no.2.2 ,2.3 & 2.4 and other financial documents viz. balance sheet, profit & loss accounts etc. to satisfy clause no. 2.5 above shall be required to be submitted in support of above claims. In absence of requisite documents, GAIL reserves the right to reject the bid without making any reference to the bidder.






MECON LIMITED

FORMAT-A

ANNUAL TURNOVER

Applicant’s Legal Name : Date : JV Partner’s Legal Name : Tender No.:

Page ……… of ………..

Each bidder must fill in this form (Single Entity)

Annual Turnover data for the last 3 audited financial years.

Year Currency Amount Exchange Rate (*)

Amount (INR) (*)

Year 1: Year 2: Year 3:

Each member of a JV/Consortium must fill in this form (J. V. Consortium)

Annual Turnover data for the last 3 audited financial years

Year Currency Amount Exchange Rate (*)

Amount (INR) (*)

Leader of J. V./Consortium

Year 1: Year 2: Year 3: Partner A Year 1: Year 2: Year 3: Partner B Year 1: Year 2: Year 3: Total 1. The information supplied should be the – Annual Turnover of the applicant and each member

of a JV/Consortium. 2. A brief note should be appended describing details as per audited results. 3. Indicate Financial year if it is different from April to March.

Signature of Bidder

(*) To filled by Owner / Consultant






MECON LIMITED

FORMAT-B

FINANCIAL SITUATION

Applicant’s Legal Name : Date : JV Partner’s Legal Name : Tender No.:

Page ……… of ………..

Each bidder or member of a JV/Consortium must fill in this form

FINANCIAL DATA FOR LAST AUDITED FINANCIAL YEAR

Year Sl. No.

Description

Amount Exchange Rate (*)

Amount (INR) (*)

1. Current Assets 2. Current Liabilities 3. Working Capital (1-2) 4. Net Worth

Owners funds (Paid up share capital and Free Reserves & Surplus)

5. Profits before taxes 6. Return on Equity (5/4) x 100

1. Attached are copies of the audited balance sheets, including all related notes, and income

statement for the last Audited Financial year, as indicated above, complying with the following conditions.

• All such documents reflect the financial situation of the bidder or partner to

JV/Consortium, and not sister or parent companies. • Historic financial statements must be audited by a certified accountant • Historic financial statements must be complete, including all notes to the financial

statements • Historic financial statements must correspond to accounting periods already completed and

audited (no statement for partial period shall be requested or accepted).

Signature of Bidder (*) Applicable for foreign bidders to filled by Owner / Consultant


APPENDIX - A

CUT-OUT SLIPS (4 NOS.)


CUT-OUT SLIP – 1

(OUTER ENVELOPE)

DO NOT OPEN-THIS IS A QUOTATION CLIENT : GAIL (INDIA) LIMITED PROJECT : Natural Gas Pipeline Project from Ibrahimpur to Dholpur Power

Plant BID DOCUMENT NO : 05/51/23JV/GAIL/060 ITEM : GAS CHROMATOGRAPH DUE DATE & TIME : 15.07.2006 at 1500 Hrs. TO,

A. K. Sharma, DGM I/c (Contracts) MECON LIMITED

15TH FLOOR, NORTH TOWER, SCOPE MINAR, LAXMI NAGAR, DELHI – 110092

FROM NAME: ADDRESS

(To be pasted on the outer envelope containing “Priced”, “Unpriced” bids along with Bid security/ EMD)


CUT-OUT SLIP – 2

PART – I (UNPRICED BID)


Plant BID DOCUMENT NO : 05/51/23JV/GAIL/060 ITEM : GAS CHROMATOGRAPH DUE DATE & TIME : 15.07.2006 at 1500 Hrs.. TO,



FROM NAME: ADDRESS

(To be pasted on the envelope containing “Unpriced” bid)


CUR-OUT SLIP - 3

PART – II (PRICED BID)





FROM NAME: ADDRESS

(To be pasted on the envelope containing “Priced” bid)


CUT-OUT SLIP – 4

PART – III (BID SECURITY)





FROM NAME: ADDRESS

(To be pasted on the envelope containing “Bid Security”)


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SECTION – II

INSTRUCTIONS TO BIDDER (ITB)

GAIL (India) Limited MECON LIMITED

INSTRUCTIONS TO BIDDERS\\Rajesh_tomer\vaidant\IJ\ITB - IJ.doc Signature & Stamp of Bidder Page 1 of 76

SECTION – II

INSTRUCTIONS TO BIDDERS

A: GENERAL

1. Scope of Bid : 1.1 The Purchaser as defined in the GeneralConditions of Contract-Goods, hereinafter "thePurchaser" wishes to receive bids for the supplyof goods as described in Section-IV, SpecialCondition of Contract.

1.2 The successful bidder will be expected tocomplete the Scope of supply within the periodstated in Special Conditions of Contract.

1.3 Throughout these bidding documents, the terms"bid" and "tender" and their derivatives("bidder/tenderer", "bid/tendered", "bidding/tendering", etc.) are synonymous, and daymeans calendar day. Singular also means plural. -.

2. Eligible Bidder 2.1 Bidders shall, as part of their bid, submit awritten power of attorney, authorizing thesignatory of the bid to bind the bidder.

2.2 This Invitation for Bids is open to any bidder andto pre-qualified bidders in case of limited tender.

2.3 Bidders should not be associated or have beenassociated in the past, directly or indirectly, witha firm or any of its affiliates which have beenengaged by the Purchaser to provide consultingservices for the preparation of the design,specifications and other documents to be usedfor the procurement of the goods to bepurchased under this Invitation for Bids.

2.4 The bid should be from actual manufacturers.The bids from sole selling agents / authorizeddistributors/ authorized dealers /authorizedsupply houses can also be considered, providedsuch bids are accompanied with back-upauthority letter from the concernedmanufacturers who authorize them to markettheir product, provided further such an authorityletter is valid at the time of bidding. Offers



without back-up authority from manufacturer willnot be considered. Required warranty cover ofthe manufacturers for the product will beprovided by such supplier.

2.5 The bidder shall not be under a declaration ofineligibility by Purchaser for corrupt or fraudulentpractices as defined in ITB.

2.6 While evaluating the bids, pursuant to BidEvaluation Criteria as specified in the Globalnotice of lFB, bidders past performance shall alsobe assessed for ascertaining the responsivenessof the bid. In such a case. the decision ofPurchaser shall be final and binding on the bidder[Applicable in case of Open Tender]

2.7 The bidder is not put on holiday by GAIL or blacklisted by any Government Department/ PublicSector.

3. One Bid per Bidder 3.1 A bidder who submits or participates in morethan one bid will cause all the proposals in whichthe bidder has participated to be disqualified.

4. Bidder Eligibility 4.1 Experience Criteria as per Invitation for Bid (IFB)(for Open Competitive (Section – I of this Bid Document)Bidding only)

4.2 Financial Criteria as per Invitation for Bid (IFB)(Section – I of this Bid Document)

5. Cost of Bidding 5.1 The bidder shall bear all costs associated with thepreparation and submission of the bid, andPURCHASER (GAIL), will in no case, beresponsible or liable for these costs, regardless ofthe conduct or outcome of the bidding process.

B. BIDDING DOCUMENT

6. Content of Bidding 6.1 The bidding documents are those stated belowDocuments and should be read in conjunction with any

addenda issued in accordance with ITB Clause

Vol-I of II

Section-I : Invitation for bids (IFB)



Section-II : Instructions to Bidder (ITB)

Section-III : General Conditions ofContract (GCC – Goods)

Section–VIII : Attachment – I to GCC,Forms & Formats

VOLUME – II of II

Section-IV : Special Conditions ofContract (SCC)

Section-V Brief summary of agreedterms & conditions

Section-VI : Material Requisition andTechnical Specification

Section-VII : Bid Form

Section-IX : Price Schedule / SORSection-X Drawing

6.2 The Bidder is expected to examine allinstructions, forms, terms andspecifications in the bidding documents.The Invitation for Bids (IFB) together withall its attachments thereto, shall beconsidered to be read, understood andaccepted by the bidders. Failure to furnishall information required by the biddingdocuments or to submit a bid notsubstantially responsive to the biddingdocuments in every respect will be at theBidder's risk and may result in therejection of its bid.

7. Clarification of Bidding Documents 7.1 A prospective bidder requiring anyclarification of the Bidding Documentsmay notify MECON in writing or by fax ore-mail at MECON mailing addressindicated in the Invitation for Bids.MECON will respond in writing to anyrequest for clarification of the Biddingdocuments which it receives not later than10 days prior to the deadline for thesubmission of bids prescribed by MECON.Written copies of MECON response



(including an explanation, of the querybut without identifying the source of thequery) will be sent to all prospectivebidders who have received the biddingdocuments. Any Clarification orinformation required by the bidder butsame not received by the Purchaser, tendays prior to the bid due date, the sameis liable to be considered as noclarification/information required.

[In case there is provision of pre-bidconference. all questions/queries shouldbe referred to MECON on or beforescheduled date of pre-bid conference. Thequestions/queries received by MECONprior to pre-bid conference wilt beaddressed in the pre-bid conference & noseparate communication will be sent tobidders.]

8. Amendment of Bidding Documents 8.1 At any time prior to the bid due date, thePURCHASER may, for any reason,whether at its own initiative or inresponse to a clarification requested by aprospective bidder, modify the biddingdocuments, by issuing addenda.

8.2 Any addendum thus issued shall be partof the Bidding Documents pursuant toITB Clause-6.1 and shall be notified inwriting by fax/post to all prospectivebidders who have received the biddingdocuments. Prospective bidders shallpromptly acknowledge receipt of eachaddendum by fax/post to the Purchaser.

8.3 The PURCHASER may, at its discretion,extend the bid due date in order to allowprospective bidders, a reasonable time tofurnish their most competitive bid takinginto account the amendments issue

C. PREPARATION OF BIDS

9. Language of Bid 9.1 The bid prepared by the bidder as well asall correspondence/drawings anddocuments relating to the bid exchangedby bidder and the PURCHASER shall be



written in English language, providedthat any printed literature furnished bythe bidder may be written in anotherlanguage so long as accompanied by anENGLISH translation, in which case, forthe purpose of interpretation of the bid,the ENGLISH translation shall govern.

9.2 In the event of submission of anydocument/certificate by the Bidder in alanguage other than English, the Englishtranslation of the same duly authenticatedby Chamber of Commerce of Bidder'scountry shall be submitted by the Bidder.Metric measurement system shall beapplied.

10 Documents Comprising the Bids 10.1 The bid prepared by the bidder shallcomprise the following components:

10.1.1 UN PRICED BID ( Part -I)

a) Price Schedule (with price figuresblanked) completed in accordance withITB Clauses 11, 12 & 13.

b) Documentary evidence establishing thatBidder is eligible to bid and meetsqualification criteria in accordance withITB Clause 14.

c) Documentary evidence establishingGoods' eligibility and conformity toBidding Documents in accordance withITB Clause 15

d) Copy of Bid Security in accordance withITB Clauses.

e) Power of Attorney of the signatory to theBidding Document.

f) Document showing annual turnover forthe last three years such as annualreports, profit and loss account, net worthetc.

g) One Original and One Copy of BiddingDocuments along withaddendum/corrigendum no. duly signedand sealed on each page, in token ofconfirmation that Bid Documents areconsidered in full while preparing the bidand in case of award, work will be



executed in accordance with theprovisions detailed in Bid Documents.

h) Agreement between principal and Agent/Consultant /Retainer/ Associatesindicating their relationship & assignedservice incase of foreign bidder.

i) Various forms & formats including bidform enclosed as Attachment to GCC/SCCto be duly filled & submitted.(Please note space for prices to bekept blank in these documents,which are meant for Part – I of thebid.)

j) List of 2(two) years spares with blankprice, if applicable, in line with Technicalpart.

k) List of commissioning spares, ifapplicable, in line with Technical part

l) Any other information/details required asper bidding document includingaddendum/ corrigendum to this biddingdocument, if issued.

10.1.2 PRICED BID ( Part -II )

Bid Form and Price schedule duly filled inwith price of recommended spares for2(two) years operation & maintenance beseparately given if asked for.

Break up of quantum of imports in case ofdomestic bidder to be given. IndianAgent’s fee also be indicated, separatelyin Indian Rupees, if applicable, in case offoreign bidders.

10.1.3 Original Bid Security (Part-III)

11. Bid Form & Price Schedule 11.1 The bidders shall complete the Bid Formand appropriate, Price schedule furnishedin the Section – VII of Bidding Document,indicating the required information for allthe goods to be supplied, a briefdescription of the goods, their country oforigin and quantity,

12. Bid Prices 12.1 Indian Bidders shall indicate the followingseparately (as per Price Schedule)



A) Ex-works Price including packingand forwarding charges (suchprice to include all costs as well asduties and taxes paid or payableon components and raw materialsincorporated or to be incorporatedin the goods).

B) Excise Duty & Sales Tax (rates)which will be payable on thefinished goods, if this contract isawarded.

C) The bidders shall indicate breakupof the quantum of importsinvolved for import of necessaryraw materials and componentsgiving CIF value of Import inapplicable currency considered andincluded in bid price Essentialitycertificate may be provided by thePurchaser for Project imports,wherever applicable.

D) The statutory variation in Exciseduty & Sales Tax on finishedgoods covered under Cl. 12.1 Bwithin the contractual deliveryperiod shall be to GAIL's account.However, any increase in the rateof these taxes and duties beyondthe contractual completion periodshall be to bidder's account andany decrease in rate shall bepassed on to GAIL. Further, anystatutory variation in the rate ofcustoms duty (except CVD) withincontractual delivery period, on-theactual CIF value of import content,but subject to maximum of suchduty payable on quoted CIF value,under Cl. 12.1 (A) shall also be toGAIL's account. In case of delay indelivery, any increase in the rateof customs duty beyond thecontractual completion period shallbe to bidder's account and anydecrease in rate shall be passedon to GAIL.

12.2 Inland transportation, other local



costs incidental to delivery of thegoods to its final destination (FOT-site) shall be quoted by the Bidder.However, transit Insurance shallbe arranged by Purchaser.

12.3 Foreign Bidders shall submit pricesseparately for the following-(as per PriceSchedule - Section VII).

A) FOB port of shipment inclusive of alltaxes, duties and storage charges uptoFOB port of Shipment basis.

B) CFR port of discharge (INDIA).C) CIF Port of Discharge (INDIA).

12.4 The bidder's break-up of pricecomponents in accordance with abovesub-clauses will be solely for the purposeof facilitating the comparison. of bids andwill not in any way, limit thePURCHASER's right to contract ondifferent terms.

12.5 Fixed Price: Prices quoted by the biddershall be firm and fixed during the bidder'sperformance of the contract and notsubject to variation on any account exceptfor variations permitted under 12.1 D fordomestic bidders. A bid submitted with anadjustable price quotation will be treatedas non responsive and rejected.

12.6 The delivery terms shall be interpreted asper INCOTERMS 2000.

13 Bid Currencies 13.1 Domestic bidders may submit bid in anycurrency (including Indian Rupees) andreceive payment in such currency at parwith foreign bidder. [Applicable in ICBtenders only]

13.2 Foreign bidders may submit bid in homecurrency of bidder's country or in USDollars/ EURO or in any other currency.[Applicable in ICB tender].

13.3 A bidder expecting to Incur a portion ofhis expenditure in the performance of



Contract in more than one currency(limited to maximum two currencies)(without prejudice to the provisions of ITBClause 13.2) and wishing to be paidaccordingly shall indicate the same in thebid. In such a case, the bid shall beexpressed in different currencies with therespective amounts in each currencytogether making up the total price.

13.4 [Applicable for domestic only] Biddersshall submit their bids in Indian Rupeesonly

14 Documents Establishing Bidder's 14.1 Bid Evaluation CriteriaEligibility and Qualification

14.1.1 Pursuant to evaluation Criteria specified inInvitation for Bids (IFB) the bidder shallfurnish all necessary supportingdocumentary evidence to establish thebidder's claim of meeting Bid evaluationcriteria.

14.2 Bidders Eligibility Criteria

14.2.1 The bidder shall furnish, as part of his bid,documents establishing the bidder'seligibility to bid and its qualification toperform the contract if its bid is accepted.

14.2.2 The documentary evidence of the bidder'squalifications to perform the contract if hisbid is accepted, shall establish to thePURCHASER'S satisfaction:

a) that, in the case of a Bidderoffering to supply goods under thecontract which the Bidder did notmanufacture (or otherwise,produce, the, Bidder has been dulyauthorized by the goodsManufacturer or producer tosupply the goods in thePurchaser’s country.

b) that the Bidder has the financial,technical and production capacity



necessary to perform the contract;

c) that, in case of a Bidder not doingbusiness within the Purchaser'scountry, the Bidder is or will be (ifawarded the contract) representedby an Agent in that countryequipped and able to carry out theSupplier's maintenance, repair andspare parts-stocking obligationsprescribed in the Conditions ofContract and/or TechnicalSpecifications.

14.2.3 The PURCHASER will determine to itssatisfaction whether the bidder selectedas having submitted the lowest evaluated,responsive bid is qualified to satisfactorilyperform the contract. An affirmativedetermination will be pre-requisite foraward of the Contract.

15 Documents Establishing 15.1 Pursuant to ITB Clause 10, the bidderGoods' Eligibility and Conformity) shall furnish, as part of the bid, documentsto Bidding Documents establishing the eligibility and

conformity to the Bidding Documents ofall goods and services which the bidderproposes to supply under the Contract.

15.2 The documentary evidence of the goodsand services' conformity to the BiddingDocuments may be in the form ofliterature, drawings or data and shallfurnish:

a) detailed description of theessential technical andperformance characteristics of thegoods;

b) a clause-by-clause commentary onthe PURCHASER'S Technicalspecifications demonstrating thegoods and services' substantialresponsiveness to thespecifications.



15.3 For purpose of the commentary to befurnished under Clause-15.2 above, thebidder shall note that standards forworkmanship, material and equipmentand reference to brand names orcatalogue numbers, designated by thePURCHASER in its Technical Specificationsare intended to be descriptive only andnot restrictive.

16 Period of Validity of Bids 16.1 The bid shall remain valid for acceptancefor four (4) months from the bid duedate. PURCHASER shall reject a bid validfor a shorter period being non-responsive.

16.2 In exceptional circumstances, prior toexpiry of the original bid validity period,the PURCHASER may request that thebidder extend the period of bid validity fora specified additional period. The requestsand the responses thereto shall be madein writing (by fax / post e-mail). A biddermay refuse the request without forfeitureof his bid security. A bidder agreeing tothe request will not be required orpermitted to modify his bid, but will berequired to extend the validity of its bidsecurity for the period of the extensionand in accordance with ITB Clause 17.0 inall respects.

17 Bid Security 17.1 Pursuant to ITB Clause-10, the biddershall furnish, as part of his bid, bidsecurity in the amount specified in theInvitation for Bids.

17.2 The bid security is required to protect thePURCHASER against the risk of bidder'sconduct which would warrant thesecurity's forfeiture, pursuant to ITBClause-17. 7

17.3 The bid security in US Dollars for biddersquoting in foreign currency and IndianRupees for bidders quoting in IndianRupees shall be in the form of DemandDraft/ Banker's Cheque in favour of GAIL(India) Limited, payable as per IFB



(issued by Indian Nationalised /Scheduled bank or first class Internationalbank) or in the form of Bank Guarantee/irrevocable Letter of Credit as per formatenclosed in the Bidding Document.

GAIL shall not be liable to pay any bank -charges, commission or interest on theamount of bid security.

In case, bid security is in the form of BankGuarantee or Letter of Credit, the sameshall be from any Indian scheduled bankor a branch of an International banksituated in India and registered withReserve bank of India as scheduledforeign bank. However, in case of BankGuarantee/Letter of Credit from banksother than the Nationalised Indian banks,the bank must be commercial bank havingnet worth in excess of Rs 100 crores anda declaration to this effect should bemade by such commercial bank either inthe Bank Guarantee / Letter of Credititself or separately on its letterhead.

The Bid Security shall be valid for two(02) months beyond the validity of the Bidas specified in Clause 16.0 of ITB.

17.4 Any bid not secured in accordance withITB Clause 17.1 and 17.3 may be rejectedby the PURCHASER as non-responsive.However, this shall not be applicable incase of NSIC registered bidder asspecified in Clause 17.9 of ITB.

17.5 Unsuccessful bidder’s bid security will bedischarged/returned as promptly aspossible but not later than 30 days afterthe expiration of the period of bid validityprescribed by the PURCHASER, pursuantto Clause – 16 of ITB.

17.6 The successful bidder’s bid security willbe discharged upon the bidder's acceptingthe order, pursuant to ITB Clause-42 andfurnishing the Contract Performance



Guarantee pursuant to ITB Clause-43.

17.7 The bid security may be forfeited:

a) If a bidder withdraws his bidduring the period of bid validity.

b) in the case of a successful bidder,if the bidder fails:i) to accept the Purchase

Order in accordance withITB Clause-42 or

ii) to furnish PerformanceGuarantee in accordancewith ITB Clause-43

iii) to accept correction oferrors pursuant to ITBClause 32.0

c) If the Bidder changes theproposed manufacturer aftersubmission of his bid.

17.8 Bid Security should be in favour of GAIL(India) Limited and addressed to GAIL.Bid Security must indicate the BidDocument number and the item for whichthe bidder is quoting. This is essential tohave proper co-relation at a later date.The Bid Security in the form of BankGuarantee or letter of Credit shall be inthe form provided in the BiddingDocument.

17.9 For Domestic Bidders: Central PublicSector Undertakings and firms registeredwith NSIC are exempted from furnishingbid security provided they are registeredfor the quoted items upto the monetarylimit they intend to quote and subject totheir enclosing with their bid a copy of thelatest and current Registration Certificate.

18. Pre-Bid meeting 18.1 The bidder (s) or his designated[Applicable only for open representative who have purchased bidCompetitive Bidding cases] document, are invited to attend a pre-bid

meeting which will take place at thevenue indicated at Invitation for Bid (IFB).



18.2 The purpose of the meeting will be toclarify issues and to answer questions onany matter that may be raised at thatstage.

18.3 The bidder is requested, as far aspossible, to submit any questions bycourier or by fax to reach MECON’s officenot later than one week before themeeting. It may not be practicable at themeeting to answer questions receivedlate, but questions and responses will betransmitted in accordance with thefollowing sub-clause.

18.4 The text of the questions raised and theresponses given, together with anyresponses prepared after the meeting, willbe transmitted without delay (withoutidentifying the sources of the question) toall purchasers of the bidding documents.Any modification of the biddingdocuments listed in clause of ITB thatmay become necessary as a result of thepre-bid meeting shall be made by thePurchaser exclusively through the issue ofan Addendum pursuant to ITB Clause-8and not through the minutes of the pre-bid meeting.

18.5 Non-attendance of the pre-bid meetingwill not be a cause for disqualification of abidder.

19 Format and Signing of Bid 19.1 The bidder shall prepare one original ofthe document comprising the bid as perclause 10.0 of ITB marked "original". Inaddition, the bidder shall submit fourcopies of the bid clearly marked "copies".In the event of any discrepancy betweenthe original and the copies, the originalwill govern.

19.2 The original and all copies of the bid shallbe typed or written in indelible ink (in thecase of copies, photocopies are alsoacceptable) and shall be signed by the



person or persons duly authorised to signon behalf of the bidder. The name andposition held by each person signing,must be typed or printed below thesignature. All pages of the bid, except anycatalogues/ literatures shall be signed andsealed by the person or persons signingthe bid.

19.3 The bid shall contain no alterations,omissions or additions, unless suchcorrections are initialed by the personssigning the bid.

20 Zero Deviation 20.1 Bidders to note that this is a zerodeviation tender, MECON/GAIL willappreciate submission of offer based onthe terms and conditions in the enclosedGeneral Conditions of Contract (GCC-Goods), Special Conditions of Contract(SCC), Instructions to Bidders (ITB),Scope of supply, technical specificationsetc, to avoid wastage of time and moneyin seeking clarifications on technical/commercial aspects of the offer. Biddermay note that no technical andcommercial clarifications will be sought forafter the receipt of the bids. Bids with anydeviation to the bid conditions shall beliable for rejection.

21 E-Payment 21.1 GAIL (India) Limited has initiatedpayments to suppliers and contractorselectronically and to facilitate thepayments electronically, the bidder shouldhave an account with HDFC Bank or ICICIBank or State Bank of India so that thepayment through e-banking be made to 'the bidder, in case order is placed on him.Further, the bidder should give theiraccount number and other details inanyone of the above banks to facilitatepayment through e-banking.

22 Agent/ consultant/ Representative/ 22.1 MECON/GAIL would prefer to deal directlyRetainer/ Associate [Applicable for with the manufacturers/ principals abroadlCB tenders only] but in case they decide to have their

Agent/Consultant/Representative/Retainer



/ Associate in India and pay commissionfor their services against a particulartender, it should be bare minimum andthe principal would have to certify thatsuch a commission is commensurate withthe services rendered to them by such anAgent/ Consultant /Representative/Retainer/ Associate in India. The principalwill also have to broadly list out servicesto be rendered by the Agent/ Consultant/Representative Retainer/ Associate inIndia.

22.2 In the event bidder is having as Agent/Consultant/ Representative/ Retainer/Associate/ servicing facilities in India (whois not an employee of the bidder) thebidder should indicate in their offer thename of such an Agent/ Consultant/Representative/Retainer / Associate, theyhave for services in India. The biddermust also indicate clearly the commissionpayable to the Agent/Consultant/Representative Retainer/Associate inrupees in terms of Agreement (enclosingcopy of the same). The bidder, in his bidwill indicate the nature and extent ofservice to be provided by such anAgent/ConsultantRepresentative/Retainer/ Associate onbehalf of the bidder and alsoremuneration therefore provided in theprice, as a separate item, quoted by thebidder to GAIL. Suchremuneration/commission will be paid byGAIL in non-convertible Indian currency inIndia. Should it be established at anysubsequent point of time that the abovestatement of the bidder is not correct orthat any other amount of remunerationcommission either in India or abroad isbeing paid to anyone (who is not anemployee of the bidder), the bidder wouldbe liable to be debarred from participatingin the future tenders of GAIL.

Failure to give such information willlead to rejection of the offer.



The following particulars will also befurnished by the bidder:

(i) The precise relationship betweenthe foreign manufacturer/principaland their Agent/ConsultantRepresentative / Retainer/Associate in India.

(ii) The mutual interest which themanufacturer/principal and theAgent/ Consultant/ RepresentativeRetainer/Associate in India have inthe business of each other.

(iii) Any payment which the Agent/Consultant/ Representative/Retainer/ Associate receives inIndia or abroad from themanufacturer/principal whether asa commission for the contract oras a general fee.

(iv) Permanent Income Tax number ofAgent/ Consultant/Representative/ Retainer/Associate in India.

(v) Permanent income tax accountnumber of foreign supplier,

(vi) All services to be rendered by theAgent Consultant Representative /Retainer/Associate.

Tenders which do not comply withthe above stipulations are liable tobe ignored.

22.3 Overseas bidder should send their bidsdirectly and not through Agent/Consultant/ Representative / Retainer/Associate Agent ConsultantRepresentative Retainer/ Associate of theoverseas manufacturers/suppliers are,however, permitted to purchase biddingdocuments and attend bid opening



provided such as Agent/ Consultant /Representative/ Retainer/ Associate has apower of attorney/ letter of authoritysetting out very clearly his role, which willbe limited to such areas of activity aspurchase of bidding documents, attendingof bid opening and claiming of paymentfor their services, provided further thatsuch a power of attorney/letter ofauthority is submitted to GAIL in advancefor scrutiny and acceptance or otherwise.

D. SUBMISSION OF BIDS

23. Sealing and marking of bids 23.1 Bid shall be submitted in the followingmanner in separate sealed envelopes dulysuperscribed as below:

Part I - Techno-commercial/ unpriced BidPart II - Priced BidPart III - Original Bid Security

23.2 Techno Commercial un-priced Bid: (Part I)Original Bid of Techno-commercial Un-priced Bid shall be sealed in one separateenvelope super scribing "Techno-Commercial Un-Priced Bid for……………….. Procurement" "Original".Each of four copies of Tech no-Commercial unpriced Bid shall be sealedin separate envelopes super scribing"Techno-Commercial un Priced Bid for

……………….. Procurement" "Copy",All these five envelopes (I original + 4copies) shall be sealed in one separateenvelope super scribing "Techno-Commercial Un-Priced Bid for ……………….Procurement containing One Original +four copies",

23.3 Price Bid: (Part II) Original Price Bid andeach of four copies shall be sealed inseparate envelopes super scribing "PriceBid for ……………… Procurement""Original" or "Copy" as the case may be.All such 5 envelopes (one original + fourcopies) shall be sealed in separate



envelope super scribing "Price Bid for…………….. Procurement (One Original +Four Copies)" "Not to Open along withTechno-Commercial Unpriced Bid".

23.4 Bid Security: (Part-III) Original and eachof four copies shall be sealed in separateenvelopes clearly super scribing "BidSecurity for …………… Procurement""Original" or "Copy" as the case may be.These envelopes shall be further sealed asdetailed hereunder.

23.5 All three envelopes containing Techno-Commercial un-priced Bids, Price Bids andBid security shall further be sealed in oneouter envelope super scribing "Bid for………………… Procurement", BiddingDocument Number.

23.6 Bids must be received at the addressgiven at Invitation for Bid.

23.7 Each envelope shall indicate name andaddress of the bidder to enable the bid tobe returned unopened, if required.

23.8 If the outer envelope is not sealed andmarked as above, the PURCHASER willassume no responsibility for themisplacement or premature opening ofthe bid. Also Bidder shall ensure that theenvelopes used are strong enough towithstand the weight and enroutehandling by Postal department/ CourierServices.

24 Deadline for Submission of Bid 24.1 Bids must be received by the Purchaser atthe address specified at Invitation for Bid(IFB) not later than the date and timespecified in the IFB.

24.2 The PURCHASER may, at its discretion, ongiving reasonable notice by fax or anywritten communication to all prospectivebidders who have been issued the biddocuments, extend the deadline for the



submission of bids in which case all rightsand obligations of the PURCHASER andthe bidders, previously subject to the biddue date, shall thereafter be subject tothe deadline as extended.

25 Late Bids 25.1 Any bid received by the PURCHASER afterthe deadline for submission of bidprescribed under IFB shall be rejected.

26 Modification And Withdrawal of Bids 26.1 The bidder may modify or withdraw hisbid after the bid's submission, but beforethe due date of submission provided thatthe written notice of the modification,including substitution or withdrawal of thebid is received by the PURCHASER prior tothe deadline prescribed for submission ofbids.

26.2 The bidder's modification or withdrawalnotice shall be prepared, sealed, markedand delivered in accordance with theprovisions of ITB Clause-23 and 24, withthe outer envelopes additionally marked -modification" or "withdrawal" asappropriate. A withdrawal notice may alsobe sent by fax/post, but followed by asigned confirmation copy post marked notlater than the deadline for submission ofbids.

26.3 No bid shall be modified after the deadlinefor submission of bids.

26.4 No bid shall be allowed to be withdrawnin the interval between the deadline forsubmission of bids and the expiration ofthe period of bid validity specified by thebidder on the Bid Form. Withdrawal of abid during this interval shall result in thebidder's forfeiture of his bid security,

E. OPENING AND EVALUATION OF BIDS

27 Bid Opening 27.1 UNPRICED TECHNO-COMMERCIAL BIDOPENING:

27.1.1 The Purchaser will open bids (Part-I & III)



including withdrawals and modificationsmade pursuant to Clause 26.0 of ITB, inthe presence of bidders' designatedrepresentatives who choose to attend, atdate, time as stipulated in IFB. Thebidder's representatives who are presentshall sign bid-opening register evidencingtheir attendance.

27.1.2 Envelopes marked "withdrawal" shall beopened first and the name of the biddershall be read out. Bids for which anacceptable notice of withdrawal has beensubmitted pursuant to Clause26.0 of ITBshall not be opened. Subsequently, allenvelopes marked "Modifications" shall beopened and submissions therein read outin appropriate details. Thereafter all otherbids received by due date and time will beopened.

27.1.3 The bidder's names, bid modifications andwithdrawals, the presence (or absence)and amount of bid security and any othersuch details as the Purchaser mayconsider appropriate will be announced bythe Purchaser.

28 Process to be Confidential 28.1 Information relating to the examination,clarifications, evaluation and comparisonof bids and recommendations for theorder, shall not be disclosed to bidders orany other person officially concerned withsuch process.

29 Contacting the Purchaser 29.1 From the time of the bid opening to thetime of the release of order, if any bidderwishes to contact the Purchaser for anymatter relating to the bid, it should do soin writing.

29.2 Any effort by a bidder to influence thePurchaser in any manner in respect of bidevaluation or award will result in therejection of that bid.

30 Preliminary Examination of Bids 30.1 Techno-Commercial Bid Evaluation



30.1.1 The PURCHASER will examine the bids todetermine whether they are complete,whether any computational errors havebeen made, whether required securitieshave been furnished, whether thedocuments have been properly signed andwhether the bids are generally in order.

30.1.2 Prior to the detailed evaluation. thePURCHASER will determine whether eachbid is of acceptable quality, is generallycomplete and is responsive to the BiddingDocuments. For purposes of thisdetermination a responsive bid is onewhich conforms to all the terms.conditions and specification of the biddingdocument, without deviations, objections,conditionally or reservations.

30.1.3 No deviation whatsoever, is permitted inthe Bidding Documents and the price bidsof those bidders whose technical andcommercial bids contain any exception tothe conditions and stipulations of theBidding Documents shall not be openedand returned un-opened to suchbidder(s).

30.1.4 The Purchaser's determination of a bid'sresponsiveness is to be based on thecontents of the bid itself without recourseto extrinsic evidence. If a bid is non-responsive, it will be rejected by thePurchaser and may not subsequently bemade responsive by the bidder bycorrection of the nonconformity.

30.1.5 The Purchaser will carry out a detailedevaluation of the bids previouslydetermined to be responsive in order todetermine whether the technical aspectsare in accordance with the requirementsset forth in the Bidding Documents. Inorder to reach such a determination, thePurchaser will examine and compare thetechnical aspects of the bids on the basisof the information supplied by thebidders, taking into account he following



factors:

(a) Overall completeness andcompliance with the TechnicalSpecifications; quality function andoperation of the process controlconcept included in the bid. Thebid that does not meet minimumacceptable standard ofcompleteness, consistency anddetail will be rejected as non-responsive.

(b) Any other relevant factor, if anythat the Purchaser deemsnecessary or prudent to be takeninto consideration.

30.2 Requisite forms contain all necessaryinformation including those, required formeeting qualifying criteria stipulated inthe Bidding Document.

31 Price-Bid Opening 31.1 The Purchaser shall inform the time, dateand, venue for price bid opening to allsuch bidders who qualify pursuant totechno-commercial bid evaluation. Biddersmay be required to attend price bidopening at a short notice of 24 hours.

31.2 The PURCHASER will open price bids of allbidders notified to attend price bidopening, in the presence of authorizedbidders' representatives. The bidders'representatives, who are present shallsign bid-opening register evidencing theirattendance.

31.3 The bidders' names, bid prices, and suchother details as the PURCHASER, at itsdiscretion, may consider appropriate willbe announced at the opening.

32 Arithmetic Corrections 32.1 The bids will be checked for anyarithmetical errors as follows:

32.1.1 (In case of any discrepancy betweenprices in words and prices in figures, the



prices in words shall be valid and binding.In case of any error in total indicated bythe Bidder, the unit price alone shall beconsidered valid and binding on theBidder.

32.1.2 If the bidder does not accept thecorrection of errors, his bid will berejected and the bid security will beforfeited.

33 Conversion To Single Currency 33.1 To facilitate evaluation and comparison,[Applicable in ICB tenders only] the PURCHASER will convert all bid prices

expressed in the amounts in variouscurrencies in which bid price is payable, toIndian Rupees at the Bills sellingexchange rate declared by the State Bankof India on the day prior to price bidopening.

34 Evaluation And Comparison of Bids 34.1 The PURCHASER will evaluate andcompare the bids previously determinedto be substantially responsive, pursuant toITB Clause - 30.

34.2 Bid Evaluation and Comparison Criteria:

The evaluation of all the responsive bidfor supplies to be arrived at the lowestevaluated offer as under:

(A) Domestic Bidders:

The evaluated price of domestic biddersshall include the following:

i) Ex-works price quoted by thebidder (including packing,forwarding, taxes and dutiesincluding customs duties, if any,on components and raw materialsbut excluding InlandTransportation to PURCHASER'Ssite).

ii) Excise duty on the finished goods.iii) Sales Tax on the finished goods

(With/Without form 'C' for CST/With/ Without concessional form



for LST).iv) Domestic price preference, if any,

in accordance with ITB Clause-35.

B) Foreign Bidders:

The evaluated price of foreignbidders shall include the following:

i) F.O.B price or FCA price ifspecifically asked for, as quoted bythe bidder

ii) Ocean/ Freight, if specifically forshall be taken as per'TRANSCHART' rates provided byMinistry of Surface Transport,Govt. of India.

iii) Marine insurance @ 1% of FOBprice.

iv) Landing charges @1% on CIFvalue, if applicable.

v) Prevailing rate of Customs duty*on (CIF value + Landing charges)

* Project rate/ merit rate/ customsduty as applicable.

34.3 Bids not conforming to BidQualification criteria and technicalspecifications/requirements shallbe rejected.

35 Domestic Preference 35.1 The supplies of materials andequipment by Domestic biddersare eligible, as per Governmentdirectives to following preference:

EXTENT OF DOMESTICVALUE ADDED

EXTENT OF PRICEPREFERENCE

Less than 30% NIL

30% and more Domestic preference shall be limited to Off-setting of CentralSales Tax to the extent of 4% or actual whichever is lowerplus Octroi at actuals.



35.2 The domestic value addition shall becalculated with the following formula:

Net Ex-works price – CIF value of Imports% Value Addition = ------------------------------------------------------ x 100

Net Ex-works price

In above formula the Customs duty shallbe considered as applicable on importedraw materials/components and Exciseduty & Sales Tax shall be considered onfinished goods.

35.3 Once quoted the extent of Domestic Valueaddition shall remain unaltered.

Bidder shall submit Chartered Accountantcertificate in original, confirming thatDomestic value addition is more than orequal to 30% as above for availingDomestic preference.

36 Purchase Preference 36.1 Purchase preference to CentralGovernment Public Sector Undertakingshall be allowed as per Governmentinstruction in vogue.

F. AWARD OF CONTRACT

37 Post Qualification 37.1 In the absence of pre qualification, thePURCHASER will determine to itssatisfaction whether the bidder selectedas having submitted the lowest evaluated,responsive bid is qualified to satisfactorilyperform the contract.

37.2 The determination will take into accountthe bidder's financial, technical andproduction capabilities. It will be basedupon an examination of the documentaryevidence of the bidder's qualificationssubmitted by the Bidder, pursuant to ITBClause-10, as well as such otherinformation as the PURCHASER deemsnecessary and appropriate.



37.3 An affirmative determination will be aprerequisite for award of the contract tothe bidder. A negative determination willresult in rejection of the bidder's bid.

38 Award Criteria 38.1 Subject to ITB Clause 30, the Purchaserwill award the contract to the successfulBidder whose bid has been determined tobe substantially responsive and has beendetermined to be the lowest evaluatedbid, provided further that the Bidder isdetermined to be qualified to perform thecontract satisfactorily.

39 PURCHASER's Right to Vary 39.1 PURCHASER reserves the right at the timeQuantities at Time of Award of award of ORDER to increase or

decrease by upto 15 % the quantity ofGOODS specified in the MaterialRequisition, without any change in unitprice or other terms and conditions.Variation beyond this limit will be subjectto mutual agreement between thePURCHASER and the Seller.

40 PURCHASER's Right To 40.1 PURCHASER reserves the right to acceptAccept Any Bid And To reject or reject any bid and to annul the biddingAny or All Bids process and reject all bids, at any time

prior to award of contract, withoutthereby incurring any liability to theaffected bidder or bidders or anyobligations to inform the affected bidderor bidders of the ground for thePURCHASER'S ACTION.

41 Notification of Award/ 41.1 Prior to the expiration of period of bidFax of Intent validity, the PURCHASER will notify

the successful bidder in writing, by faxor e-mail to be confirmed in writing. thathis bid has been accepted. Thenotification of award/ Fax of Intent willconstitute the formation of the Contract.

41.2 Delivery shall be counted from the date ofnotification of award / Fax of Intent.

41.3 Upon the successful bidder’s furnishing ofcontract performance bank guarantee.Pursuant to ITB Clause-43, the



PURCHASER will promptly notify eachunsuccessful bidder and will discharge hisbid security pursuant of ITB Clause 17.

42 Acceptance of Purchase Order 42.1 PURCHASER will issue the Purchase Orderto the successful bidder, who, within 15days of receipt of the same, shall sign allpages and return the acceptance copy tothe PURCHASER.

43 Performance Guarantee 43.1 Within 15 days of the receipt of thenotification of award/ Fax of Intent fromthe PURCHASER, the successful biddershall furnish the performance guaranteein accordance with Clause 12 of GeneralConditions of Contract (GCC-Goods) in theform provided in the bidding documents.The Bank Guarantee/Letter of Credittowards performance guarantee shall bein the currency of the Contract.

43.2 The performance guarantee shall be foran amount equal to 10% of the value ofthe contract towards faithful performanceof the contractual obligations andperformance of equipment. This BankGuarantee/Letter of Credit shall be fromany Indian scheduled bank or a branch ofan International bank situated in Indiaand registered with Reserve bank of Indiaas scheduled foreign bank. However, incase of bank guarantees/ Letter of Creditsfrom banks other than the NationalisedIndian banks, the bank must be acommercial bank having net worth inexcess of Rs 100 crores and a declarationto this effect should be made by suchcommercial bank either in the BankGuarantee itself or separately on itsletterhead. This bank guarantee/letter ofCredit shall be valid for a period as-statedin Clause-12 of General Conditions ofContract (GCC Good).

43.3 Failure of the successful bidder to complywith the requirements of this clause shallconstitute sufficient grounds for the



annulment of the award and forfeiture ofthe bid security.

44 Income Tax Liability 44.1 The bidder will have to bear all incometax liability, both Corporate as well as forhis personnel.

45 Corrupt or Fraudulent 45.1 The Purchaser requires that Bidders /Practices Suppliers observe the highest standard of

ethics during the procurement andexecution of the order. In pursuance ofthis policy, the Purchaser:

a) defines, for the purposes of this provision,the terms set forth below as follows:

i) “corrupt practice” means theoffering, giving, receiving orsoliciting of any thing of value toinfluence the action of a publicofficial in the procurement processor in contract execution and

ii) “fraudulent practice” means amisrepresentation of facts in orderto influence a procurementprocess or the execution of acontract to the detriment of thePurchaser and includes collusivepractice among Bidders (prior to orafter bid submission) designed toestablish bid prices at artificialnon-competitive levels and todeprive the Purchaser of thebenefits of free and opencompetition;

b) will reject a proposal for award if itdetermines that the Bidderrecommended for award hasengaged in corrupt or fraudulentpractices in competing for thecontract in question;

c) will declare a firm ineligible, eitherindefinitely or for a stated periodof time, if at any time thePurchaser determines that the firmhas engaged in corrupt or



fraudulent practices in competingfor or in executing a contract.


SECTION – III

GENERAL CONDITIONS OF CONTRACT(GCC - GOODS)


GCC\\Rajesh_tomer\vaidant\IJ\ITB - IJ.doc Signature & Stamp of Bidder Page 30 of 76

1 Definitions In this document, General Conditions of Contract (GCC-Goods),the following terms shall have the following respectivemeanings:

1.0 BIDDER : Designates the individual or legal entity whichhas made a proposal, a tender or a bid with the aim ofconcluding a Contract with the PURCHASER.

1.1 CONSULTANT [if engaged] shall mean M/s MECONLimited having its registered office at Doranda, Ranchi,Jharkhand (India) and an Engineering office at 15th

Floor, North Tower, Scope Minar, Laxmi Nagar DistrictCentre, Delhi - 110 092, INDIA. The term consultantincludes successors, assigns of M/s MECON Limited.

1.2 CONTRACT shall mean Purchase Order/Contract and allattached exhibits and documents referred to therein andall terms and conditions thereof together with anysubsequent modifications thereto.

1.3 CONTRACT PRICE shall mean the price payable to theSeller under the Contract for the full and properperformance of his contractual obligations.

1.4 COMPLETION DATE shall mean the date on which thegoods are successfully commissioned by the Seller andhanded over to the PURCHASER.

1.5 COMMERCIAL OPERATION shall mean the condition ofthe operation in which the complete equipment coveredunder the Contract is officially declared by thePURCHASER to be available for continuous operation atdifferent loads upto and including rated capacity.

1.6 DELIVERY terms shall be interpreted as per INCO TERMS2000 in case of Contract with a foreign Bidder and as thedate of LR/GR in the case of a contract with an IndianBidder.

1.7 DRAWINGS shall mean and include Engineeringdrawings, sketches showing plans, sections andelevations in relation to the Contract together withmodifications and/or revisions thereto.

1.8 ENGINEER or Engineer-in-Charge of the Project SITEshall mean the person designated from time to time byPURCHASER/CONSULTANT at SITE and shall includethose who are expressly authorized by him to act for andon his behalf for operation of this CONTRACT.



1.9 FINAL ACCEPTANCE shall mean the PURCHASER’swritten acceptance of the Works performed under theContract after successful completion of performance andguarantee test.

1.10 GOODS shall mean articles, materials, equipment, designand drawings, data and other property to be supplied bySeller to complete the contract.

1.11 INSPECTOR shall mean any person or outside Agencynominated by PURCHASER/CONSULTANT throughCONSULTANT to inspect equipment, stagewise as well asfinal, before dispatch, at SELLER’s works and on receiptat SITE as per terms of the CONTRACT.

1.12 INITIAL OPERATION shall mean the first integraloperation of the complete equipment covered under theContract with sub-systems and supporting equipment inservice or available for service.

1.13 PURCHASER shall mean GAIL (INDIA) LIMITED (GAIL)having its registered office at 16, BHIKAIJI CAMA PLACE,R.K.PURAM, NEW DELHI-110066 (INDIA). The termPURCHASER includes successors, assigns of GAIL.

1.14 PERFORMANCE AND GUARANTEE TESTS shall mean alloperational checks and tests required to determine anddemonstrate capacity, efficiency and operatingcharacteristics as specified in the Contract documents.

PROJECT designates the aggregate of the Goods and/orServices to be provided by one or more Contractors.

Quantities – Bills of quantities

Bills of quantities

Designate the quantity calculations to be taken intoaccount when these calculations are made from detailedor construction drawings, or from work actuallyperformed, and presented according to a jointly agreedbreakdown of the Goods and/or Services.

1.15 SELLER shall mean the person, firm or company withwhom PURCHASE ORDER/CONTRACT is placed/enteredinto by PURCHASER for supply of equipment, materialsand services. The term Seller includes its successors andassigns.

1.16 SERVICE shall mean erection, installation, testing,commissioning, provision of technical assistance, trainingand other such obligations of the Seller covered under



the Contract.

1.17 SITE designates the land and/or any other premises on,under, in or across which the Goods and/or Serviceshave to be supplied, erected, assembled, adjusted,arranged and/or commissioned.

1.18 SPECIFICATIONS shall mean and include schedules,details, description, statement of technical data,performance characteristics, standards (Indian as well asInternational) as applicable and specified in the Contract.

1.19 SUB-CONTRACT shall mean order placed by the Seller,for any portion of the contracted work, after necessaryconsent and approval of PURCHASER.

1.20 SUB-CONTRACTOR shall mean the person named in theCONTRACT for any part of the work or any person towhom any part of the CONTRACT has been sub-let bythe SELLER with the consent in writing of theCONSULTANT/PURCHASER and will include the legalrepresentatives, successors, and permitted assigns ofsuch person.

1.21 START-UP shall mean the time period required to bringthe equipments covered under the Contract from aninactive condition, when construction is essentiallycomplete to the state of readiness for trial operation. Thestart-up period shall include preliminary inspection andcheck out of equipment and supporting subsystems,initial operation of the complete equipments coveredunder the Contract to obtain necessary pre-trialoperation data, perform calibration and corrective action,shutdown inspection and adjustment prior to the trialoperation period.

1.22 TESTS shall mean such process or processes to becarried out by the Seller as are prescribed in the Contractor considered necessary by PURCHASER or hisrepresentative in order to ascertain quality,workmanship, performance and efficiency of equipmentor part thereof.

1.23 TESTS ON COMPLETION shall mean such tests asprescribed in the Contract to be performed by the Sellerbefore the Works are taken over by the PURCHASER.

2 Seller To Inform 2.1 The Seller shall be deemed to have carefully examined allcontract documents to his entire satisfaction. Any lack ofinformation shall not in any way relieve the Seller of hisresponsibility to fulfill his obligation under the Contract.



3 Application 3.1 These General Conditions of Contract (GCC-Goods) shallapply to the extent that they are not superseded byprovisions of other parts of the Contract.

4 Country of Origin 1.1 For purposes of this Clause “origin” means the placewhere the Goods were mined, grown or produced, orfrom which the services are supplied. Goods areproduced when, through manufacturing, processing orsubstantial and major assembling of components, acommercially recognized new product results that issubstantially different in basic characteristics or inpurpose or utility from its components.

5 Scope of Contract 5.1 Scope of the CONTRACT shall be as defined in thePURCHASE ORDER/CONTRACT specifications, drawingsand Annexure thereto.

5.2 Completeness of the EQUIPMENT shall be theresponsibility of the SELLER. Any equipment, fittings andaccessories which may not be specifically mentioned inthe specifications or drawings, but which are usual ornecessary for the satisfactory functioning of theequipment (successful operation and functioning of theEQUIPMENT being SELLER’s responsibility) shall beprovided by SELLER without any extra cost.

5.3 The SELLER shall follow the best modern practices in themanufacture of high grade EQUIPMENT notwithstandingany omission in the specifications. The true intent andmeaning of these documents is that SELLER shall in allrespects, design, engineer, manufacture and supply theequipment in a thorough workmanlike manner andsupply the same in prescribed time to the entiresatisfaction of PURCHASER.

5.4 The SELLER shall furnish twelve (12) copies in Englishlanguage of Technical documents, final drawings,preservation instructions, operation and maintenancemanuals, test certificates, spare parts catalogues for allequipments to the PURCHASER.

5.5 The documents once submitted by the SELLER shall befirm and final and not subject to subsequent changes.The SELLER shall be responsible for any loss to thePURCHASER/CONSULTANT consequent to furnishing ofincorrect data/drawings.

5.6 All dimensions and weight should be in metric system.

5.7 All equipment to be supplied and work to be carried outunder the CONTRACT shall conform to and comply with



the provisions of relevant regulations/Acts(StateGovernment or Central Government) as may beapplicable to the type of equipment/work carried out andnecessary certificates shall be furnished.

5.8 The Seller shall provide cross sectional drawings,wherever applicable, to identify the spare part numbersand their location. The size of bearings, their make andnumber shall be furnished.

5.9 Specifications, design and drawings issued to the SELLERalongwith RFQ and CONTRACT are not sold or given butloaned. These remain property ofPURCHASER/CONSULTANT or its assigns and are subjectto recall by PURCHASER/CONSULTANT. The SELLER andhis employees shall not make use of the drawings,specifications and technical information for any purposeat any time except for manufacture against theCONTRACT and shall not disclose the same to anyperson, firm or corporate body, without writtenpermission of PURCHASER/CONSULTANT. All such detailsshall be kept confidential.

5.10 SELLER shall pack, protect, mark and arrange fordespatch of EQUIPMENT as per instructions given in theCONTRACT.

6 Standards 6.1 The GOODS supplied under the CONTRACT shall conformto the standards mentioned in the TechnicalSpecifications, or such other standards which ensureequal or higher quality, and when no applicablestandard is mentioned, to the authoritative standardappropriate to the GOODS’ country of origin and suchstandards shall be the latest issued by the concernedinstitution.

7 Instructions, Direction& Correspondence

7.1 The materials described in the CONTRACT are to besupplied according to the standards, data sheets, tables,specifications and drawings attached thereto and/orenclosed with the CONTRACT, itself and according to allconditions, both general and specific enclosed with thecontract, unless any or all of them have been modified orcancelled in writing as a whole or in part.a. All instructions and orders to SELLER shall, excepting

what is herein provided, be given byPURCHASER/CONSULTANT.

b. All the work shall be carried out under the directionof and to the satisfaction ofPURCHASER/CONSULTANT.

c. All communications including technical/commercialclarifications and/or comments shall be addressed to



CONSULTANT in quintuplicate with a copy toPURCHASER and shall always bear reference to theCONTRACT.

d. Invoices for payment against CONTRACT shall beaddressed to PURCHASER.

e. The CONTRACT number shall be shown on allinvoices, communications, packing lists, containersand bills of lading, etc.

8 Contract Obligations 8.1 If after award of the contract, the Seller does notacknowledge the receipt of award or fails to furnish theperformance guarantee within the prescribed time limit,the PURCHASER reserves the right to cancel the contractand apply all remedies available to him under the termsand conditions of this contract.

8.2 Once a contract is confirmed and signed, the terms andconditions contained therein shall take precedence overthe Seller’s bid and all previous correspondence.

9 Modification InContract

9.1 All modifications leading to changes in the CONTRACTwith respect to technical and/or commercial aspectsincluding terms of delivery, shall be considered valid onlywhen accepted in writing by PURCHASER/CONSULTANTby issuing amendment to the CONTRACT. Issuance ofacceptance or otherwise in such cases shall not be anyground for extension of agreed delivery date and alsoshall not affect the performance of contract in anymanner except to the extent mutually agreed through amodification of contract.

9.2 PURCHASER/CONSULTANT shall not be bound by anyprinted conditions or provisions in the SELLER’s BidForms or acknowledgment of CONTRACT, invoices,packing list and other documents which purport toimpose any conditions at variance with or supplementalto CONTRACT.

10 Use of ContractDocuments &Information

10.1 The Seller shall not, without thePURCHASER’s/CONSULTANT’s prior written consent,disclose the CONTRACT or any provision thereof, or anyspecification, plan, drawing, pattern, sample orinformation furnished by or on behalf of the PURCHASERin connection therewith, to any person other than aperson employed by the SELLER in the performance ofthe CONTRACT. Disclosure to any such employed personshall be made in confidence and shall extend only so faras may be necessary for purpose of such performance.

10.1 The SELLER shall not, without the PURCHASER’s priorwritten consent, make use of any document orinformation enumerated in Article 10.1. except for



purpose of performing the CONTRACT.

11 Patent Rights, Liability& Compliance ofRegulations

11.1 SELLER hereby warrants that the use or sale of thematerials delivered hereunder will not infringe claims ofany patent covering such material and SELLER agrees tobe responsible for and to defend at his sole expense allsuits and proceedings against PURCHASER based on anysuch alleged patent infringement and to pay all costs,expenses and damages which PURCHASER and/orCONSULTANT may have to pay or incur by reason of anysuch suit or proceedings.

11.2 The SELLER shall indemnify the PURCHASER against allthird party claims of infringement of patent, trade markor industrial design rights arising from use of the GOODSor any part thereof in the PURCHASER’s country.

11.3 SELLER shall also protect and fully indemnify thePURCHASER from any claims from SELLER’Sworkmen/employees or their heirs, dependants,representatives, etc. or from any other person/persons orbodies/companies etc. for any acts of commissions oromission while executing the CONTRACT.

11.4 SELLER shall be responsible for compliance with allrequirements under the laws and shall protect andindemnify completely the PURCHASER from anyclaims/penalties arising out of any infringements.

12 PerformanceGuarantee

12.1 Within 15 days after the SELLER’s receipt of notificationof award of the CONTRACT, the SELLER shall furnishPerformance Guarantee in the form of BankGuarantee/irrevocable Letter of Credit to thePURCHASER, in the form provided in the BiddingDocuments, for an amount equivalent to 10% of thetotal value of the CONTRACT.

12.2 The proceeds of Performance Guarantee shall beappropriated by the PURCHASER as compensation forany loss resulting from the SELLER’s failure to completehis obligations under the CONTRACT without prejudice toany of the rights or remedies the PURCHASER may beentitled to as per terms and conditions of CONTRACT.The proceeds of this Performance Guarantee shall alsogovern the successful performance of Goods andServices during the entire period of ContractualWarrantee/Guarantee.

12.3 The performance guarantee shall be denominated in thecurrency of the CONTRACT.

12.4 The Performance Guarantee shall be valid for theduration of 90 days beyond the expiry ofWarrantee/Guarantee period. The Bank Guarantee willbe discharged by PURCHASER not later than 6 monthsfrom the date of expiration of the Seller’s entireobligations, including any warrantee obligations, underthe CONTRACT.



13 Inspection, Testing &Expediting

13.1 The PURCHASER or its representative shall have the rightto inspect and/or to test the GOODS to confirm theirconformity to the CONTRACT specifications. The specialconditions of CONTRACT and/or the TechnicalSpecifications shall specify what inspections and tests thePURCHASER requires and where they are to beconducted. The PURCHASER shall notify the SELLER inwriting the identity of any representative(s) retained forthese purposes.

13.2 The inspections and tests may be conducted on thepremises of the SELLER or his sub-contractor(s), at pointof DELIVERY and/or at the GOODS’ final destination,When conducted on the premises of the SELLER or hissub-contractor (s), all reasonable facilities and assistanceincluding access to the drawings and production datashall be furnished to the inspectors at no charge to thePURCHASER.

13.3 Should any inspected or tested GOODS fail to conform tothe specifications, the PURCHASER may reject them andthe SELLER shall either replace the rejected GOODS ormake all alterations necessary to meet Specifications’requirements, free of cost to the PURCHASER.

13.4 The PURCHASER’s right to inspect, test and wherenecessary reject the GOODS after the GOODS’ arrival inthe PURCHASER’s country shall in no way be limited orwaived by reason of the GOODS having previously beeninspected, tested and passed by the PURCHASER, ortheir representative prior to the GOODS shipment fromthe country of origin.

13.5 The INSPECTOR shall follow the progress of themanufacture of the GOODS under the CONTRACT toensure that the requirements outlined in the CONTRACTare not being deviated with respect to schedule andquality.

13.6 SELLER shall allow the INSPECTOR to visit, duringworking hours, the workshops relevant for execution ofthe CONTRACT during the entire period of CONTRACTvalidity.

13.7 In order to enable PURCHASER’s representatives toobtain entry visas in time, SELLER shall notifyPURCHASER two months before assembly, testing andpacking of main EQUIPMENT. If requested, SELLER shallassist PURCHASER’s representatives in getting visas inthe shortest possible time (applicable only in case offoreign order).

13.8 SELLER shall place at the disposal of the INSPECTOR,free of charge, all tools, instruments, and otherapparatus necessary for the inspection and/or testing ofthe GOODS. The INSPECTOR is entitled to prohibit the



use and dispatch of GOODS and/or materials which havefailed to comply with the characteristics required for theGOODS during tests and inspections.

13.9 SELLER shall advise in writing of any delay in theinspection program at the earliest, describing in detailthe reasons for delay and the proposed corrective action.

13.10 ALL TESTS and trials in general, including those to becarried out for materials not manufactured by SELLERshall be witnessed by the INSPECTOR. Therefore,SELLER shall confirm to PURCHASER by fax or e-mailabout the exact date of inspection with at least 30 daysnotice. SELLER shall specify the GOODS and quantitiesready for testing and indicate whether a preliminary orfinal test is to be carried out.

13.11 If on receipt of this notice, PURCHASER should waive theright to witness the test, timely information will begiven accordingly.

13.12 Any and all expenses incurred in connection with tests,preparation of reports and analysis made by qualifiedlaboratories, necessary technical documents, testingdocuments and drawings shall be at SELLER’s cost. Thetechnical documents shall include the reference andnumbers of the standards used in the construction and,wherever deemed practical by the INSPECTOR, copy ofsuch standards.

13.13 Nothing in Article-13 shall in any way release the SELLERfrom any warrantee or other obligations under thisCONTRACT.

13.14 Arrangements for all inspections required by IndianStatutory Authorities and as specified in technicalspecifications shall be made by SELLER.

13.15 Inspection & Rejection of Materials by consigneesWhen materials are rejected by the consignee, thesupplier shall be intimated with the details of suchrejected materials, as well as the reasons for theirrejection, also giving location where such materials arelying at the risk and cost of the contractor/supplier. Thesupplier will be called upon either to remove thematerials or to give instructions as to their disposalwithin 14 days and in the case of dangerous, infectedand perishable materials within 48 hours, failing whichthe consignee will either return the materials to thecontractor freight to pay or otherwise dispose them off atthe contractor’s risk and cost. The PURCHASER shallalso be entitled to recover handling and storage chargesfor the period, during which the rejected materials arenot removed @ 5% of the value of materials for eachmonth or part of a month till the rejected materials arefinally disposed off.

14 Time Schedule & 14.1 Time Schedule Network/Bar Chart



Progress Reporting 14.1.1 Together with the Contract confirmation, SELLERshall submit to PURCHASER, his time scheduleregarding the documentation, manufacture,testing, supply, erection and commissioning ofthe GOODS.

14.1.2 The time schedule will be in the form of a networkor a bar chart clearly indicating all main or keyevents regarding documentation, supply of rawmaterials, manufacturing, testing, delivery,erection and commissioning.

14.1.3 The original issue and subsequent revisions ofSELLER’s time schedule shall be sent to

PURCHASER.14.1.4 The time schedule network/bar chart shall be

updated at least every second month.

14.2 Progress Trend Chart/Monthly Report14.2.1 SELLER shall report monthly to PURCHASER, on

the progress of the execution of CONTRACT andachievement of targets set out in time bar chart.

14.2.2 The progress will be expressed in percentages asshown in the progress trend chart attached tothe Time Schedule specification.

14.2.3 The first issue of the Progress Trend Chart will beforwarded together with the time bar chartalongwith CONTRACT confirmation.

14.3.1 PURCHASER’s/CONSULTANT’s representativesshall have the right to inspect SELLER’s premiseswith a view to evaluating the actual progress ofwork on the basis of SELLER’s time scheduledocumentation.

14.3.2 Irrespective of such inspection, SELLER shalladvise CONSULTANT, with copy to PURCHASER,at the earliest possible date of any anticipateddelay in the progress.

14.4 Notwithstanding the above, in case progress on theexecution of contract at various stages is not as perphased time schedule and is not satisfactory in theopinion of the PURCHASER/CONSULTANT which shall beconclusive or SELLER shall neglect to execute theCONTRACT with due diligence and expedition or shallcontravene the provisions of the CONTRACT,PURCHASER/CONSULTANT may give notice of the samein writing to the SELLER calling upon him to make goodthe failure, neglect or contravention complained of.Should SELLER fail to comply with such notice within theperiod considered reasonable by PURCHASER/CONSULTANT, the PURCHASER/ CONSULTANT shallhave the option and be at liberty to take the CONTRACTwholly or in part out of the SELLER’s hand and makealternative arrangements to obtain the requirements and



completion of CONTRACT at the SELLER’s risk and costand recover from the SELLER, all extra cost incurred bythe PURCHASER on this account. In such eventPURCHASER/CONSULTANT shall not be responsible forany loss that the SELLER may incur and SELLER shall notbe entitled to any gain. PURCHASER/CONSULTANT shall,in addition, have the right to encash PerformanceGuarantee in full or part.

15 Delivery & Documents 15.1Delivery of the GOODS shall be made by the SELLER inaccordance with terms specified in the CONTRACT, and thegoods shall remain at the risk of the SELLER until delivery hasbeen completed.15.2 Delivery shall be deemed to have been made :

a) In the case of FOB, CFR & CIF Contracts, when theGoods have been put on board the ship, at thespecified port of loading and a clean Bill of Lading isobtained. The date of Bill of Lading shall beconsidered as the delivery date.

b) In case of FOT despatch point contract (For Indianbidder), on evidence that the goods have beenloaded on the carrier and a negotiable copy of theGOODS receipt obtained. The date of LR/GR shallbe considered as the date of delivery.

c) In case of FOT site (for Indian bidders) on receipt ofgoods by PURCHASER/Consultant at the designatedsite(s).

15.3 The delivery terms are binding and essential andconsequently, no delay is allowed without the writtenapproval of PURCHASER/CONSULTANT. Any requestconcerning delay will be void unless accepted byPURCHASER/CONSULTANT through a modification to theCONTRACT.

15.4 Delivery time shall include time for submission ofdrawings for approval, incorporation of comments, if any,and final approval of drawings byPURCHASER/CONSULTANT.

15.5 In the event of delay in delivery, Price ReductionSchedule as stipulated in Article – 26 shall apply.

15.6 The documentation, in English Language, shall bedelivered in due time, in proper form and in the requirednumber of copies as specified in the contract.

15.7 The additional copies of final drawings and instructionswill be included in the package of goods, properlyenveloped and protected.

15.8 The SELLER should comply with the Packing, Markingand Shipping Documentation Specifications enclosed.

16 Transit Risk Insurance 16.1 All goods supplied under the contract shall be fully



insured in a freely convertible currency against loss ordamage incidental to manufacture or acquisition,transportation, storage and delivery.

16.2 Where delivery is on FOB or CFR basis, marine insuranceshall be the responsibility of the Purchaser.Insurance Requirements :Indigenous Bidders : Transit risk insurance

from F.O.T. despatchpoint onwards shall bearranged and borne byGAIL.

Foreign Bidders : Marine insurance as well astransit insurance in Purchaser’scountry shall be arranged andborne by GAIL.

The SELLER shall ensure that in effecting despatch ofmaterials, the primary responsibility of the carriers forsafe movement is always retained so that thePURCHASER’s interests are fully safeguarded and are inno way jeopardised. The Seller shall furnish the cost ofmaterials against each equipment.

16.2 PURCHASER’s Insurance Agent :[The name and address-as mentioned under SCC]

17 Transportation 17.1 Where the SELLER is required under the CONTRACT todeliver the GOODS FOB, transport of the GOODS untildelivery, that is, upto and including the point of puttingthe GOODS on board the export conveyance at thespecified port of loading, shall be arranged and paid forby the SELLER and the cost thereof shall be included inthe Contract price.

17.2 Where the SELLER is required under the CONTRACT todeliver the GOODS CFR or CIF, transport of the Goods tothe port of discharge or such other point in the countryof destination as shall be specified in the CONTRACTshall be arranged and paid for by the SELLER and thecost thereof shall be included in the Contract price.

18 Incidental Services 18.1 The Seller may be required to provide any or all of thefollowing services:

18.1.1 Performance or supervision of onsite assembly and/orstart-up of the supplied Goods:

18.1.2 Furnishing tools required for assembly and/ormaintenance of the supplied Goods:

18.1.3 Performance or supervision or maintenance and/or repairof the supplied Goods, for a period of time agreed by the



parties, provided that this service shall not relieve theSeller of any warrantee/guarantee obligations under theContract.

18.1.4 Training of the Purchaser’s personnel at the Seller’s plantand/or at Site, in assembly, start-up operation,maintenance and/or repair of the supplied Goods at noextra cost. However, Purchaser will bear boarding,lodging & personal expenses of Trainees.

18.2 Prices charged by the Seller for the preceding incidentalservices, shall not exceed the prevailing rates charged toother parties by the Seller for similar services.

18.3 When required, Seller shall depute necessary personnelfor supervision and/or erection of the Equipment at sitefor duration to be specified by Purchaser on mutuallyagreed terms. Seller’s personnel shall be available atSite within seven days for emergency action and twenty-one days for medium and long-term assistance, from thedate of notice given by Purchaser.

18.4 The cost of incidental services shall not be included inthe quoted prices. The cost of applicable incidentalservices should be shown separately in the priceschedules.

19 Spare Parts,Maintenance Tools,Lubricants

19.1 Seller may be required to provide any or all of thefollowing materials and notification pertaining to spareparts manufactured or distributed by the Seller.

19.1.1 Such spare parts as the Purchaser may opt to purchasefrom the Seller, provided that his option shall notrelieve the Seller of any warrantee obligationsunder the Contract, and

19.1.2 In the event of termination of production of the spareparts:

i) Advance notification to the Purchaser of thepending termination, in sufficient time to permitthe Purchaser to procure needed requirements,and

ii) Following such termination, furnishing at no costto the Purchaser, the blue prints, drawings andspecifications of the spare parts, if any whenrequested.

19.2 Seller shall supply item wise list with value of each itemof spare parts and maintenance tools requirements,along with full details of manufacturers/vendors forsuch spares/maintenance tools for :

19.2.1 The construction, execution and commissioning.



19.2.2 2 years operation and maintenance.

19.3 Spare parts shall be new and of first class quality as perengineering standards/ codes, free of any defects (evenconcealed), deficiency in design, materials andworkmanship and also shall be completelyinterchangeable with the corresponding parts.

19.4 Type and sizes of bearings shall be clearly indicated.

19.5 Spare parts shall be packed for long storage undertropical climatic conditions in suitable cases, clearlymarked as to intended purpose.

19.6 A list of special tools and gauges required for normalmaintenance and special handling and lifting appliances,if any, for the Goods shall be submitted to Purchaser.

19.7 Bidders should note that if they do not comply withClause 19.2 above, their quotation may be rejected.

19.8 Lubricants

19.8.1 Whenever lubricants are required, Seller shall indicatethe quantity of lubricants required for the first filling, thefrequency of changing, the quantity of lubricantsrequired for the one year’s continuous operation and thetypes of recommended lubricants indicating thecommercial name (trade-mark), quality and grade.

19.8.2 If Seller is unable to recommend specific oil, basicrecommended characteristics of the lubricants shall begiven.

19.8.3 Seller shall indicate various equivalent lubricantsavailable in India.

20 Guarantee 20.1 All Goods or Materials shall be supplied strictly inaccordance with the specifications, drawings, datasheets, other attachments and conditions stated in theContract.No deviation from such specifications or alterations or ofthese conditions shall be made without PURCHASER’S/CONSULTANT’S agreement in writing which must beobtained before any work against the order iscommenced. All materials supplied by the SELLERpursuant to the Contract (irrespective of whetherengineering, design data or other information has beenfurnished, reviewed or approved byPURCHASER/CONSULTANT) are guaranteed to be of thebest quality of their respective kinds (unless otherwisespecifically authorised in writing byPURCHASER/CONSULTANT) and shall be free from faultydesign, workmanship and materials, and to be of



sufficient size and capacity and of proper materials so asto fulfil in all respects all operating conditions, if any,specified in the Contract.If any trouble or defect, originating with the design,material, workmanship or operating characteristics of anymaterials, arises at any time prior to twelve(12) monthsfrom the date of the first commercial operation of thePlant for which the materials supplied under theContract form a part thereof, or twenty four (24) monthsfrom the date of last shipment whichever period shallfirst expire, and the SELLER is notified thereof, SELLERshall, at his own expense and as promptly as possible,make such alterations, repairs and replacements as maynecessary to permit the materials to function inaccordance with the specifications and to fulfil theforegoing guarantees.PURCHASER/CONSULTANT may, at his option, removesuch defective materials, at SELLER’S expense in whichevent SELLER shall, without cost toPURCHASER/CONSULTANT and as promptly as possible,furnish and install proper materials. Repaired orreplaced materials shall be similarly guaranteed by theSELLER for a period of no less than twelve (12) monthsfrom the date of replacement/repair.In the event that the materials supplied do not meet thespecifications and/or not in accordance with the drawingsdata sheets or the terms of the Contract and rectificationis required at site, PURCHASER/CONSULTANT shall notifythe SELLER giving full details of differences. The SELLERshall attend the site within seven (7) days of receipt ofsuch notice to meet and agree with representatives ofPURCHASER/CONSULTANT, the action required tocorrect the deficiency. Should the SELLER fail to attendmeeting at Site within the time specified above,PURCHASER/CONSULTANT shall immediately rectify thework/materials and SELLER shall reimburse PURCHASERall costs and expenses incurred in connection with suchtrouble or defect.

20.2 PERFORMANCE GUARANTEE OF EQUIPMENT

20.2.1 SELLER shall guarantee that the performance of theEQUIPMENT supplied under the CONTRACT shall bestrictly in conformity with the specifications and shallperform the duties specified under the CONTRACT.

20.2.2 If the SELLER fails to prove the guaranteed performanceof the EQUIPMENT set forth in the specification, theSELLER shall investigate the causes and carry outnecessary rectifications /modifications to achieve theguaranteed performance. In case the SELLER fails to doso within a reasonable period, the SELLER shall replace



the EQUIPMENT and prove guaranteed performance ofthe new equipment without any extra cost toPURCHASER.

20.2.3 If the SELLER fails to prove the guarantee within areasonable period, PURCHASER/CONSULTANT shall havethe option to take over the EQUIPMENT and rectify, ifpossible, the EQUIPMENT to fulfil the guarantees and/orto make necessary additions to make up the deficiency atSeller’s risk and cost. All expenditure incurred by thePURCHASER/CONSULTANT in this regard shall be toSELLER’s account.

21 Terms of Payment 21.1 The method of payment to be made to the SELLER underthis CONTRACT shall be specified in the SpecialConditions of Contract.

21.2 The type(s) of payment to be made to the SELLER underthis CONTRACT shall be specified in the SpecialConditions of Contract.

21.3 The SELLER’s request(s) for payment shall be made tothe PURCHASER in writing accompanied by an invoicedescribing, as appropriate, the Goods delivered andservices performed, and by shipping documentssubmitted, and upon fulfillment of other obligationsstipulated in the Contract.

21.5 Payment will be made in the currency or currencies inwhich the Contract Price has been stated in the SELLER’sbid, as well as in other currencies in which the SELLERhad indicated in his bid that he intends to incurexpenditure in the performance of the Contract andwishes to be paid. If the requirements are stated as apercentage of the bid price alongwith exchange ratesused in such calculations these exchange rates shall bemaintained.

General Notes:

1. All foreign currency payments to foreign bidder shallbe released through an irrevocable Letter of Credit,which shall be opened through Government of IndiaNationalised Bank and hence shall not be confirmed.In case any bidder insists on confirmation, chargestowards confirmation shall be borne by him. L/Cshall be established within 30 days after receipt ofunconditional acceptance of Letter /Fax of Intenttogether with Performance Guarantee for 10% oftotal order/Contract value.

2. For dispatches on FOT dispatch point (in India)basis, the payment shall be through PURCHASER’sbank. Payment through Bank, wherever applicable,shall be released as per normal banking procedures.

3. Payment shall be released within 30 days after



receipt of relevant documents complete in allrespects.

4. All bank charges incurred in connection withpayments shall be to Seller’s account in case ofIndian bidders and to respective accounts in case ofForeign bidder.

5. Unless otherwise specifically stated in bid document,all payments shall be made in the currency quoted.

6. No interest charges for delay in payments, if any,shall be payable by PURCHASER.

7. In case of Indian bidder, variation, if any, on accountof customs duty on their built-in- import content, asper terms of bid document, shall be claimedseparately by bidder after receipt of goods at site (s).However, any price benefits to the PURCHASER, onaccount of such variation as per terms specified inthe bid document, shall be passed on to thePURCHASER alongwith invoicing itself.

8. Agency commission, if any, to Indian agent forForeign bidders, indicated in prices, shall be paid tothe agent in equivalent Indian Rupees on receipt andacceptance of material at site.

22 Prices 22.1 Prices charged by the SELLER for Goods delivered andservices performed under the CONTRACT shall not, withthe exception of any price adjustments authorized by theContract vary from the prices quoted by the SELLER inhis bid.

23 Subletting &Assignment

23.1 The contractor shall not without previous consent inwriting of the PURCHASER authority, sublet, transfer orassign the contract or any part thereof or interesttherein or benefit or advantage thereof in any mannerwhatsoever. Provided, nevertheless, that any suchconsent shall not relieve the contractor from anyobligation, duty or responsibility under the contract.

24 Time As Essence ofContract

24.1 The time and date of delivery/completion of theGOODS/SERVICES as stipulated in the Contract shall bedeemed to be the essence of the Contract.

25 Delays In The Seller’sPerformance

25.1 If the specified delivery schedule is not adhered to or theprogress of manufacture or supply of the items is notsatisfactory or is not in accordance with the progressschedule the PURCHASER has the right to:i) hire for period of delay from elsewhere goods which

in PURCHASER’s opinion will meet the same purposeas the goods which are delayed and SELLER shall beliable without limitation for the hire charges; or

ii) cancel the CONTRACT in whole or in part withoutliability for cancellation charges. In that event,



PURCHASER may procure from elsewhere goodswhich PURCHASER’s opinion would meet the samepurpose as the goods for which CONTRACT iscancelled and SELLER shall be liable withoutlimitations for the difference between the cost ofsuch substitution and the price set forth in theCONTRACT for the goods involved; or

iii) hire the substitute goods vide (I) above and if theordered goods continue to remain undeliveredthereafter, cancel the order in part or in full vide (ii)above.

25.1 Any unexcusable delay by the SELLER or his sub-contractor shall render the SELLER liable, withoutprejudice to any other terms of the Contract, to any orall of the following sanctions: forfeiture of Contractperformance guarantee, imposition of price reductionfor delay in delivery and termination of the contract fordefault.

26 Price ReductionSchedule For DelayedDelivery

26.1 Subject to Article -29, if the SELLER fails to deliver any orall of the GOODS or performance the services within thetime period (s) specified in the CONTRACT, thePURCHASER shall, without prejudice to his otherremedies under the CONTRACT, deduct from theCONTRACT PRICE, a sum calculated on the basis of theCONTRACT PRICE, including subsequent modifications.

26.1.1 Deductions shall apply as per following formula:In case of delay in delivery of equipment/materials ordelay in completion, total contract price shall be reducedby ½ % (half percent) of the total contract price percomplete week of delay or part thereof subject to amaximum of 5% (five percent) of the total contract price.

26.2 In case of delay in delivery on the part of Seller, theinvoice/document value shall be reduced proportionatelyfor the delay and payment shall be released accordingly.

26.3 In the event the invoice value is not reducedproportionately for the delay, the PURCHASER maydeduct the amount so payable by SELLER, from anyamount falling due to the SELLER or by recovery againstthe Performance Guarantee.

Both seller and PURCHASER agree that the abovepercentages of price reduction are genuine pre estimatesof the loss/damage which the PURCHASER would havesuffered on account of delay/breach on the part of theSELLER and the said amount will be payable on demandwithout there being any proof of the actual loss/ordamage caused by such breach/delay. A decision of thePURCHASER in the matter of applicability of pricereduction shall be final and binding.



27 Rejections, Removal ofRejected Equipment &Replacement

27.1 Preliminary inspection at SELLER’s works by INSPECTORshall not prejudice PURCHASER’s/CONSULTANT’s claimfor rejection of the EQUIPMENT on final inspection atSITE or claims under warranty provisions.

27.2 If the EQUIPMENTS are not of specification or fail toperform specified duties or are otherwise not satisfactorythe PURCHASER/CONSULTANT shall be entitled to rejectthe EQUIPMENT/MATERIAL or part thereof and ask freereplacement within reasonable time failing which obtainhis requirements from elsewhere at SELLER’s cost andrisk.

27.3 Nothing in this clause shall be deemed to deprive thePURCHASER AND/OR AFFECT ANY rights under theContract which it may otherwise have in respect of suchdefects or deficiencies or in any way relieve the SELLERof his obligations under the Contract.

27.4 EQUIPMENT rejected by the PURCHASER/CONSULTANTshall be removed by the Seller at his cost within 14 daysof notice after repaying the amounts received against theSUPPLY. The PURCHASER shall in no way be responsiblefor any deterioration or damage to the EQUIPMENTunder any circumstances whatsoever.

27.5 In case of rejection of EQUIPMENT, PURCHASER shallhave the right to recover the amounts, if any, from anyof CONTRACTOR’S invoices pending with PURCHASER orby alternative method(s).

28 Termination ofContract

28.1 Termination for Default28.1.1 The PURCHASER may, without prejudice to any other

remedy for breach of CONTRACT, by written notice ofdefault sent to the SELLER, terminate the CONTRACT inwhole or in part:A) If the SELLER fails to deliver any or all of the

GOODS within the time period(s) specified in theCONTRACT; or

B) If the SELLER fails to perform any otherobligation(s) under the CONTRACT, and

C) If the SELLER, in either of the above circumstances,does not cure his failure within a period of 30 days(or such longer period as the PURCHASER mayauthorize in writing) after receipt of the defaultnotice from the PURCHASER.

28.1.2 In the event the PURCHASER terminates the CONTRACTin whole or in part, pursuant to Article 28.1.1, thePURCHASER may procure, upon such terms and in suchmanner as it deems appropriate, goods similar to thoseundelivered and the SELLER shall be liable to thePURCHASER for any excess costs for such similarGOODS. However, the SELLER shall continueperformance of the CONTRACT to the extent notterminated.

28.1.3 In case of termination of CONTRACT herein set



forth (under clause 28) except under conditions ofForce Majeure and termination after expiry ofcontract, the VENDOR shall be put under holiday[i.e. neither any enquiry will be issued to the partyby GAIL (India) Ltd. Against any type of tender northeir offer will be considered by GAIL against anyongoing tender (s) where contract between GAILand that particular VENDOR (as a bidder) has notbeen finalized] for three years from the date oftermination by GAIL (India) Ltd. to such VENDOR.

28.2 Termination for InsolvencyThe PURCHASER, may at any time, terminate theCONTRACT by giving written notice to the SELLER,without compensation to the SELLER, if the SELLERbecomes bankrupt or otherwise insolvent, provided thatsuch termination will not prejudice or affect any right ofaction or remedy which has accrued or will accruethereafter to the PURCHASER.

28.3 Termination for Convenience

28.3.1 The PURCHASER may, by written notice sent to theSELLER, terminate the CONTRACT, in whole or part, atany time for his convenience. The notice of terminationshall specify that termination is for the PURCHASER’sconvenience, the extent to which performance of workunder the CONTRACT is terminated and the date uponwhich such termination becomes effective.

28.3.2 The GOODS that are complete and ready for shipmentwithin 30 days after the SELLER’s receipt of notice oftermination shall be purchased by the PURCHASER at theCONTRACT terms and prices. For the remaining GOODS,the PURCHASER may opt:a) to have any portion completed and delivered at the

CONTRACT terms and prices, and /orb) to cancel the remainder and pay to the SELLER an

agreed amount for partially completed GOODS andfor materials and parts previously procured by theSELLER.

29 Force Majeure 29.1 Shall mean and be limited to the following:a) War/hostilitiesb) Riot or Civil commotionc) Earthquake, flood, tempest, lightening or other

natural physical disaster.d) Restrictions imposed by the Government or other

Statutory bodies which prevents or delays theexecution of the Contract by the SELLER.

The SELLER shall advise PURCHASER/CONSULTANT by aregistered letter duly certified by the local Chamber ofCommerce or statutory authorities, the beginning andend of the above causes of delay within seven (7) days



of the occurrence and cessation of such Force MajeureConditions. In the event of delay lasting over onemonth, if arising out of causes of Force Majeure,PURCHASER/CONSULTANT reserves the right to cancelthe Contract and the provisions governing terminationstated under Article 28.0 shall apply.For delays arising out of Force Majeure, the SELLER shallnot claim extension in completion date for a periodexceeding the period of delay attributable to the causesof Force Majeure and neither PURCHASER/CONSULTANTnor SELLER shall be liable to pay extra costs provided itis mutually established that Force Majeure Conditions didactually exist.SELLER shall categorically specify the extent of ForceMajeure Conditions prevalent in their works at the timeof submitting their bid and whether the same have beentaken into consideration or not in their quotations. Inthe event of any force majeure cause, the SELLER or thePURCHASER shall not be liable for delays in performingtheir obligations under this order and the delivery dateswill be extended to the SELLER without being subject toprice reduction for delayed deliveries, as statedelsewhere.

30 Resolution ofDisputes/Arbitration

30.1 The PURCHASER and the SELLER shall make every effortto resolve amicably by direct informal negotiations anydisagreement or dispute arising between them under orin connection with the contract.

30.2 If, after thirty days from the commencement of suchinformal negotiations, the PURCHASER and the SELLERhave been unable to resolve amicably a Contract dispute,either party may require that the dispute be referred forresolution to the formal mechanism as specifiedhereunder.

30.3 Legal ConstructionThe Contract shall be, in all respects be construed andoperated as an Indian Contract and in accordance withIndian Laws as in force for the time being and is subjectto and referred to the Court of Law situated within UnionTerritory of New Delhi.

30.4 ArbitrationAll disputes, controversies, or claims between the parties(except in matters where the decision of the Engineer-in-Charge is deemed to be final and binding) which cannotbe mutually resolved within a reasonable time shall bereferred to Arbitration by a sole arbitrator.The PURCHASER (GAIL (India) Limited) shall suggest apanel of three independent and distinguished persons tothe Seller to select any one among them to act as thesole Arbitrator.In the event of failure of the Seller to select the Sole



Arbitrator within 30 days from the receipt of thecommunication suggesting the panel of arbitrators, theright of selection of Sole Arbitrator by the other partyshall stand forfeited and the PURCHASER shall havediscretion to proceed with the appointment of the SoleArbitrator. The decision of the PURCHASER on theappointment of Sole Arbitrator shall be final and bindingon the parties.The award of the Sole Arbitrator shall be final andbinding on the parties and unless directed/awardedotherwise by the Sole Arbitrator, the cost of arbitrationproceedings shall be shared equally by the parties. Thearbitration proceeding shall be in English language andthe venue shall be at New Delhi, India.Subject to the above, the provisions of(Indian)Arbitration & Conciliation Act, 1996 and the rulesframed thereunder shall be applicable. All mattersrelating to this contract are subject to the exclusivejurisdiction of the Courts situated in the State of Delhi(India).Seller may please note that the Arbitration & ConciliationAct 1996 was enacted by the Indian Parliament and isbased on United nations Commission on InternationalTrade Law (UNCITRAL model law), which were preparedafter extensive consultation with Arbitral Institutionsand centers of International Commercial Arbitration. TheUnited Nations General Assembly vide resolution 31/98adopted the UNCITRAL Arbitration rules on 15 December1996.The WORK under the CONTRACT shall, however,continue during the Arbitration proceedings and nopayment due or payable to the Seller shall be withheldon account of such proceedings.

31 Governing Language 31.1 The Contract shall be written in English languageas specified by the PURCHASER/CONSULTANT inthe Instruction to Bidders. All literature,correspondence and other documents pertainingto the Contract which are exchanged by theparties shall be written in English language.Printed literature in other language shall only beconsidered, if it is accompanied by an Englishtranslation. For the purposes of interpretation,English translation shall govern and be bindingon all parties.

32 Notices 32.1 Any notice given by one party to the other pursuant tothe Contract shall be sent in writing or by telegram orfax, telex/cable confirmed in writing.

32.2 A notice shall be effective when delivered or on thenotice’s effective date, whichever is later.



33 Taxes & Duties 33.1 A foreign Seller shall be entirely responsible for all taxes,stamp duties, licence fees, and other such levies imposedoutside the PURCHASER’s country.

33.2 A domestic Seller shall be entirely responsible for alltaxes, duties, licence fees etc. incurred until the deliveryof the contracted goods to the PURCHASER. However,Sales Tax and Excise duty on finished products shall bereimbursed by PURCHASER.

33.3 Customs duty payable in India for imported goodsordered by PURCHASER on foreign Seller shall be borneand paid by PURCHASER.

33.4 Any income tax payable in respect of supervisoryservices rendered by foreign Seller under the Contractshall be as per the Indian Income Tax Act and shall beborne by SELLER. It is upto the bidder/seller to ascertainthe amount of these taxes and to include them in his bidprice.

34 Books & Records 34.1 SELLER shall maintain adequate books and records inconnection with Contract and shall make them availablefor inspection and audit by PURCHASER/CONSULTANT ortheir authorized agents or representatives during theterms of Contract until expiry of the performanceguarantee. Fixed price (lumpsum or unit price) Contractwill not be subject to audit as to cost except for costreimbursable items, such as escalation and terminationclaims, transportation and comparable requirements.

35 Permits & Certificates 35.1 SELLER shall procure, at his expense, all necessarypermits, certificates and licences required by virtue of allapplicable laws, regulations, ordinances and other rulesin effect at the place where any of the work is to beperformed, and SELLER further agrees to holdPURCHASER and/or CONSULTANT harmless fromliability or penalty which might be imposed by reason ofany asserted or established violation of such laws,regulations, ordinances or other rules. PURCHASER willprovide necessary permits for SELLER’s personnel toundertake any work in India in connection withContract.

36 General 36.1 In the event that terms and conditions stipulated in theGeneral Conditions of Contract should deviate from termsand conditions stipulated in the Contract, the latter shallprevail.

36.2 Losses due to non-compliance of InstructionsLosses or damages occurring to the PURCHASER owingto the SELLER’s failure to adhere to any of theinstructions given by the PURCHASER/CONSULTANT inconnection with the contract execution shall be



recoverable from the SELLER.36.3 Recovery of sums due

All costs, damages or expenses which thePURCHASER/CONSULTANT may have paid, for whichunder the CONTRACT SELLER is liable, may be recoveredby the PURCHASER(he is hereby irrevocably authorizedto do so) from any money due to or becoming due to theSELLER under this Contract or other Contracts and/ormay be recovered by action at law or otherwise. If thesame due to the SELLER be not sufficient to recover therecoverable amount, the SELLER shall pay to thePURCHASER, on demand, the balance amount.

36.4 Payments, etc. not to affect rights of the PURCHASERNo sum paid on account by the PURCHASER nor anyextension of the date for completion granted by thePURCHASER/CONSULTANT shall affect or prejudice therights of the PURCHASER against the SELLER or relievethe SELLER of his obligation for the due fulfillment of theCONTRACT.

36.5 Cut-off DatesNo claims or correspondence on this Contract shall beentertained by the PURCHASER/Consultant after 90 daysafter expiry of the performance guarantee (from the dateof final extension, if any)

36.6 Paragraph headingThe paragraph heading in these conditions shall notaffect the construction thereof.

37 Import Licence 37.1 No import licence is required for the imports coveredunder this document.

38 FALL CLAUSE 38.1 The price charged for the materials supplied under theorder by the supplier shall in no event exceed the lowestprice at which the supplier or his agent/principal/dealer,as the case may be, sells the materials of identicaldescription to any persons/organizations including thePurchaser or any department of the Central Govt. or anyDeptt. Of a State Govt. or any Statutory Undertaking ofthe Central or State Govt. as the case may be, during thecurrency of the order.

38.2 If at any time during the said period, the supplier or hisagent/principal/dealer, as the case may be, reduces thesale price, sells or offers to sell such materials to anypersons/organizations including the Purchaser or anyDeptt. Of Central Govt. or State Govt. as the case maybe, at a price lower than the price chargeable under theorder, he shall forthwith notify such reduction or sale oroffer of sale to the Purchase Authority who has issuedthis order and the price payable under the order for thematerials supplied after the date of coming into force ofsuch reduction or sale or offer of sale shall stand



correspondingly reduced.The above stipulation will, however, not apply to:a) Exports by the Contractor/Supplier orb) Sale of goods as original equipment at prices

lower than the prices charged for normalreplacement

c) sale of goods such as drugs which have expirydates.

38.3 The supplier shall furnish the following certificateto the concerned Paying Authority alongwith eachbill for payment for supplies made against thisorder:-

“I/We certify that there has been no reduction insale price of the items/goods/materials ofdescription identical to those supplied to the GAILunder the order herein and such items/goods/materials have not been offered/sold byme/us to any person/organizations including thePurchaser or any Deptt. Of Central Govt. or anyDeptt. Of State Govt. or any StatutoryUndertaking of the Central or State Govt. as thecase may be upto the date of bill/during thecurrency of the order whichever is later, at aprice lower than the price charged to the GAILunder the order.

Such a certificate shall be obtained, except for quantityof items/goods/materials categories under sub-clause(a),(b) & (c) of sub-para 38.2 above, of which detailsshall be furnished by the supplier.

39 Publicity & Advertising 39.1 Seller shall not without the written permission ofPURCHASER/Consultant make a reference toPURCHASER/Consultant or any Company affiliated withPURCHASER/Consultant or to the destination or thedescription of goods or services supplied under thecontract in any publication, publicity or advertising media.

40 Repeat Order 40.1 PURCHASER reserves the right, within 6 months of orderto place repeat order upto 50% of the total order valuewithout any change in unit price or other terms andconditions.

41 Limitation of Liability 41.1 Notwithstanding anything contrary contained herein, theaggregate total liability of Seller under the Agreement orotherwise shall be limited to 100% of Agreement / Orderprice. However, neither party shall be liable to the otherparty for any indirect and consequential damages, loss ofprofits or loss of production.

--------X--------X--------


SECTION – IV, V, VI & VII

PLEASE REFER VOLUME – II OF IIOF BID DOCUMENT


SECTION – VIII

ATTACHMENT – I TO GCC

FORMS AND FORMATS


FORMS AND FORMATS\\Rajesh_tomer\vaidant\IJ\ITB - IJ.doc Signature & Stamp of Bidder Page 55 of 76

F – 1

BIDDER'S GENERAL INFORMATION

ToGAIL (India) Limited.

1.1 Bidder Name: ………………………………………………………………………

1.2 Number of Years in Operation: ………………………………………………………………………

1.3 Registered Address: ………………………………………………………………………………………………………………………………………………………………………………………………………………………

1.4 Operation Address ………………………………………………………………………if different from above: ………………………………………………………………………

………………………………………………………………………

1.5 Telephone Number ………………………………………………………………………

(Country Code) (Area Code) (Telephone Number)

1.6 E-mail address & Web Site ………………………………………………………………………

1.7 Telefax Number ………………………………………………………………………

(Country Code) (Area Code) (Telephone Number)

1.8 ISO Certification, if any {If yes, please furnish details}

(SIGNATURE OF BIDDER WITH SEAL)



F – 2

BID FORM (PART – I)

To: (Name and address of PURCHASER) Date:

Gentlemen,

Having examined the Conditions of Contract and Specifications including Addenda Nos. (InsertNumbers) the receipt of which is hereby duly acknowledged, we the undersigned, offer tosupply and deliver (Description of Goods and Services) in conformity with the said Drawings,Conditions of Contract and specifications for the same for (total bid amount in words andfigures*) or such other sums as may be ascertained in accordance with the Schedule of Pricesattached herewith and made part of this bid.

We undertake, if our bid is accepted, complete delivery of ……………………………………………… asagreed and specified in the IFB document. If our bid is accepted, we will obtain the guaranteeof a Bank in a sum not exceeding (10)% of the Contract price for the due performance of theContract.

We agree to abide by this bid for a period of 4(four) months from the date fixed for bidopening under Instructions to Bidders and it shall remain binding upon us and may be acceptedat any time before the expiration of that period.

We have enclosed Bid Security in the form of Demand Draft/ Bank Guarantee in line with Cl. 17of ITB for (amount in figure & words) valid for 6(six) months’ period as per the requirement ofbid document.

Until a formal contract is prepared and executed, this bid, together with your writtenacceptance thereof in your notification of award (Fax of Intent) shall constitute a bindingContract between us.

We understand that you are not bound to accept the lowest or any bid, you may receive.

Dated this Day of 2004

Signature

………………………………….In the capacity of Duly authorized to sign bid for and on behalf of

Witness

Address

Signature

(*) : Quoted amount must not be filled in this bid form when it is being submittedas part of techno-commercial bid i.e. being enclosed with Part – I of the bid.



F – 3LIST OF ENCLOSURES WITH PART – I (UNPRICED BID)


Dear Sir,

We are enclosing the following documents as part of the bid:

1) Price Schedule - Price Schedule (with price figures blanked) completed inaccordance with ITB Clauses 11, 12 & 13.

2) Bid Qualification Criteria - Documentary evidence establishing that Bidder iseligible to bid and meets Qualification Criteria in accordance with ITB Clause 14.

3) Goods' Eligibility and Conformity - Documentary evidence establishing Goods'Eligibility and conformity to Bidding Documents in accordance with ITB Clause 15

4) Copy of Bid Security - Copy of Bid Security in accordance with ITB Clauses.5) Power of Attorney - Power of Attorney of the signatory to the Bidding Document.6) Annual Turnover for last three years - Document showing Annual Turnover for

the last three years such as annual reports, profit and loss account, net worth etc.7) Original and a Copy of Bidding Documents - One Original and One Copy of

Bidding Documents along with addendum/corrigendum no. duly signed and sealedon each page, in token of confirmation that Bid Documents are considered in fullwhile preparing the bid and in case of award, work will be executed in accordancewith the provisions detailed in Bid Documents.

8) Agreement between principal and Agent/ Consultant /Retainer/Associates - Agreement between principal and Agent/ Consultant /Retainer/Associates indicating their relationship & assigned service incase of foreign bidder.

9) Various Forms & Formats - Various Forms & Formats including bid form enclosedas Attachment to GCC/SCC to be duly filled & submitted. (Please note space forprices to be kept blank in these documents, which are meant for Part – Aof the bid.)

10) List of 2(two) years spares with blank price, if applicable - List of 2(two)years spares with blank price, if applicable in line with Technical part.

11) List of commissioning spares, if applicable - List of commissioning spares, ifapplicable, in line with Technical part

12) Any other information/details - Any other information / details required as perbidding document including addendum/ corrigendum to this bidding document, ifissued.

(SEAL AND SIGNATURE OF BIDDER)



F – 3A

Annual Turnover

Bidder must fill in this form

Year Currency Amount Ex. Rate (*) Amount (INR) (*)

Year 1:

Year 2:

Year 3:

1. The information supplied should be the Annual Turnover of the bidder2. A brief note should be appended describing thereby details of turnover as per

audited results.

SEAL AND SIGNATURE OF THE BIDDER

(*) To be filled by Purchaser/Consultant



F – 4

PROFORMA FOR BANK GUARANTEE FOR EARNEST MONEY DEPOSIT / BIDSECURITY

(To be stamped in accordance with the Stamp Act)

Ref............... Bank Guarantee No.........

Date......................To,GAIL (India ) Ltd.,

Dear Sir(s),

In accordance with Letter Inviting Tender under your reference No. …………………………..M/s………………………………………………………………………. having their Registered Head Office at(hereinafter called the Tenderer) wish to participate in the said tender for…………………………………………………………………………… As an irrevocable Bank Guaranteeagainst Eamest Money for the amount of………………………. is required to be submitted by theTenderer as a condition precedent for participation in the said tender which amount is liable tobe forfeited on the happening of any contingencies mentioned in the Tender Document.

"We, the ………………………………………………………………………. Bank at …………………………………having our Head Office ………………………………………………………………………. (Local Address)guarantee and undertake to pay immediately on demand without any recourse to the tenderersby GAIL (India) Ltd., the amount ………………………………………………………………………. withoutany reservation, protest, demur and recourse. Any such demand made by GAIL, shall beconclusive and binding on us irrespective of any dispute or difference raised by the Tenderer.

This guarantee shall be irrevocable and shall remain valid upto [this date should be 6monthsafter the date finally set out for closing of tender]. If any further extension of this guarantee isrequired, the same shall be extended to such required period on receiving instructions fromM/s. ……………………………………………………………………….……………………………………………………whose behalf this guarantee is issued.

In witness whereof the Bank, through its authorised officer, has set its hand and stamp on this………………………….. day of …………………………..200….. at…………………

WITNESS:

(SIGNATURE) (SIGNATURE)(NAME) (NAME)

Designation with Bank Stamp

(OFFICIAL ADDRESS) Attorney as perPower of Attorney No. …..………Date: …..………



INSTRUCTIONS FOR FURNISHING BID-GUARANTEEBANK GUARANTEE

1. The Bank Guarantee by bidders will be given on non-judicial stamp paper as perstamp duty applicable. The non-judicial stamp paper should be in the name of theissuing bank. In case of foreign bank, the said banks guarantee to be issued by itscorrespondent bank in India on requisite non-judicial stamp paper.

2. The expiry date as mentioned in bid document should be arrived at by adding 2months to the date of expiry of the bid validity unless otherwise specified in the BidDocuments.

3. The bank guarantee by bidders will be given from bank as specified in ITB.

4. A letter from the issuing bank of the requisite Bank Guarantee confirming that saidbank guarantee all future communication relating to the Bank Guarantee shall beforwarded to the Employer at its address as mentioned at ITB.

5. Bidders must indicate the full postal address of the bank along with the bank's E-mail/ Fax/ From where the earnest money bond has been issued.

6. If a bank guarantee is issued by a commercial bank, then a letter to Purchaser/Consultant confirming its net worth is more than Rs. 1,000,000,000/- (Rupees onehundred crore) or equivalent along with a documentary evidence to be submitted.



F – 4APROFORMA FOR LETTER OF CREDIT FOR BID SECURITY

To,(Beneficiary)

GAIL (India) Limited..................................................................................

Irrevocable and confirmed Letter of Credit No..........................................Amount : Rs. US$ ................................

Validity of this Irrevocable Letter of Credit : ......................................... (in India)Letter of credit : (2 months beyond validity of offer)

Dear Sir,

You are here by authorized to draw on ……………………… (Name of Applicant with full address) for asum not exceeding ……………………… available by your demand letter (draft) on them at sightdrawn for Rs. US$ accompanied by a certificate by GAIL (India) Ltd., with the Tender No. dulyincorporated therein, that one or more of the following conditions has/have occurred, specifying theoccurred condition(s)

(i) The bidder withdraws its Bid during the period of Bid validity or any extension thereof dulyagreed by the Bidder.

(ii) The Bidder varies or modifies its Bid in a manner not acceptable to GAIL (India) Ltd. duringthe period of bid validity or any extension thereof duly agreed by the Bidder.

(iii) The Bidder, having been notified of the acceptance of its Bids,(a) Fails or refuses to execute the supply order/contract(b) Fails or refuses to furnish the Contract Performance Security within 30 days before

expiry of bid Security.(c) Fails to accept arithmetic corrections as per tender conditions.

2. This Irrevocable Letter of Credit has been established towards Bid security Tender No……………………… for……………………… (item)

3. We hereby guarantee to protect the Drawers, Endorsers and bonafide holders from anyconsequences which may arise in the event of the non-acceptance or non-payment ofDemand Letter (draft) in accordance with the terms of this credit.

4. This Credit is issued subject to the Uniform Customs and Practices for Documentary Credits(1993 Revised) International Chamber of Commerce brochure No. 500.

5. Please obtain reimbursement as under:…………………………………………………

6. All foreign as well as Indian bank charges will be on the account of M/s……………………………………………………………………………………………………………………… (Applicable)

FOR ………………………

Authorised Signature(Original Bank)

Counter Signature



F – 5LETTER OF AUTHORITY

PROFORMA FOR LETTER OF AUTHORITY FOR ATTENDING SUBSEQUENTNEGOTIATIONS /CONFERENCES

No. Date:

GAIL India Limited,

Dear Sir,

We……………………… ……………………… hereby authorize following representative(s) toattend un-priced bid opening and price bid opening and for any other correspondence andcommunication against above Bidding document: - .

1) Name & Designation. ……………………………………………… Signature ………………………

2) Name & Designation ……………………………………………… Signature ………………………

We confirm that we shall be bound by all commitments made by aforementionedauthorised representatives.

Yours faithfully,

Signature

Name & Designation

For and on behalf of

Note: This letter of authority should be on the letterhead of the bidder and should besigned by a person competent and having the power of attorney to bind the bidder.

Not more than two persons are permitted to attend techno-commercial un-pricedand price bid opening.



F-6

NO DEVIATION CONFIRMATION

GAIL India Limited,

Dear Sir,

We understand that any deviation/exception in any form may result in rejection of bid. We,therefore, certify that we have not taken any exceptions/deviations anywhere in the bidand we agree that if any deviation/exception is mentioned or noticed, our bid may berejected.

(SEAL AND SIGNATURE OF BIDDER)



F – 7

CERTIFICATE

GAIL India Limited,

Dear Sir,

If we become a successful bidder and pursuant to the provisions of the Bidding Documentsaward is given to us for………………………..………………………..………………………..……………………… the followingcertificate shall be automatically enforceable:

"We agree and acknowledge that the Employer is entering into the Agreement solely on itsown behalf and not on behalf of anyother person or entity. In particular, it is expresslyunderstood and agreed that the Government of India is not a party to the Agreement andhas no liabilities, obligations or rights there under. It is expressly understood and agreedthat the Employer is authorised to enter into Agreement, solely on its own behalf under theapplicable laws of India. We expressly agree, acknowledge and understand that theEmployer is not an agent, representative or delegate of the Government of India. It isfurther understood and agreed that the Government of India is not and shall not be liablefor any acts, omissions, commissions, breaches or other wrongs arising out of theAgreement. Accordingly, we hereby expressly waive, release and forego any and all actionsor claims, including cross claims, VIP claims or counter claims against the Government ofIndia arising out of the Agreement and covenants not to sue to Government of India as toany manner, claim, cause of action or things whatsoever arising of or under theAgreement."

Seal and Signature of Bidder



F – 8

PROFORMA FOR BANK GUARANTEE FOR PERFORMANCE GUARANTEE(ON NON-JUDICIAL PAPER OF APPROPRIATE VALUE)

To:

M/s GAIL (India) Limited

Dear Sirs,

M/s ……………………………………………………………………………………………… have been awardedthe work of ……………………………………………………………………………………………… for GAIL(India) Limited, 16, Bhikaiji Cama Place, R.K. Puram, New Delhi.

The Contracts conditions provide that the SELLER shall pay a sum of Rs. …………………Rupees as full Performance Guarantee in the form therein mentioned. The form ofpayment of Performance Guarantee includes guarantee executed by Nationalised Bank,undertaking full responsibility to indemnify GAIL ( INDIA) LTD. , in case of default.

The said ……………………………………………………………………………………………… hasapproached us and at their request and in consideration of the promises we having ouroffice at ……………………………………………… agreed to give such guarantee as hereinaftermentioned.

1. We hereby undertake ……………………………………………………………………………… andagree with you that if default shall be made byM/s……………………………………………………………………… performing any of the termsand conditions of the tender or in payment of any money payable to GAIL (India)Limited. we shall on demand pay without any recourse to the contractor to you insuch manner as you may direct the said amount of Rupees………………….. only orsuch portion thereof not exceeding the said sum as you may from time to timerequire.

2. You will have the full liberty without reference to us and without affecting thisguarantee, postpone for any time or from time to time the exercise of any of thepowers and rights conferred on you under the contract with the said…………………………………………and to enforce or to forbear from endorsing anypowers or rights or by reason of time being given to the said ………………… whichunder law relating to the sureties would but for provision have the effect ofreleasing us.

3. Your right to recover the said sum of. Rs. ………………………/- (Rupees…………………… ………… …………………………………………………………… ) from us inmanner aforesaid will not be affected or of the fact that any dispute or disputeshave been raised by the said M/s……………………………………………… and/or that anydispute or disputes are pending before any officer, tribunal or court.



4. The guarantee herein contained shall not be determined or affected by theliquidation or winding up dissolution or changes of constitution or insolvency of thesaid but shall in all respects and for all purposes be binding and operative untilpayment of all money due to you in respect of such liabilities is paid.

5. This guarantee shall be irrevocable and shall remain valid upto……………………………… ……………… If any further extension of this guarantee isrequired, the same shall be extended to such required period on receivinginstruction from M/s .………………………… on whose behalf this guarantee is issued.

6. The Bank Guarantee's payment of an amount is payable on demand and in anycase within 48 hours of the presentation of the letter of invocation of BankGuarantee. Should the banker fail to release payment on demand, a penal interestof 18% per annum shall become payable immediately and any dispute arising outof or in relation to the said Bank Guarantee shall be subject to the jurisdiction ofDelhi Courts.

7. We have power to issue this guarantee in your favour under Memorandum andArticles of Association and the undersigned has full power to do under the Power ofAttorney dated …………….. granted to him by the Bank.

Yours faithfully,

……………………………Bank

By its ConstitutedAttorney

Signature of a personduly authorised to signon behalf of the Bank.



INSTRUCTIONS FOR FURNISHING PERFORMANCE GUARANTEE

1. The Bank Guarantee by successful bidder(s) will be given on non-judicial stamppaper as per stamp duty applicable. The non-judicial stamp paper should be inname of the issuing bank. In case of foreign bank, the said bank guarantee to beissued by its correspondent bank in India on requisite non-judicial stamp paper andplace of bid to be considered as Delhi.

2. The bank guarantee by bidders will be given from bank as specified in ITB.

3. A letter from the issuing bank of the requisite Bank Guarantee confirming that saidbank guarantee and all future communication relating to the Bank Guarantee shallbe forwarded to Employer

4. If a bank guarantee is issued by a commercial bank, then a letter to Purchaser andcopy to Consultant confirming its net worth is more than Rs. 1,000,000,0001-(Rupees one hundred crore) or its equivalent in foreign currency along with adocumentary evidence.


PACKING, MARKING AND SHIPPINGINSTRUCTIONS (ICB)

\\Rajesh_tomer\vaidant\IJ\ITB - IJ.doc Signature & Stamp of Bidder Page 68 of 76

F – 9A[APPLICABLE FOR ICB TENDERS]

PACKING, MARKING AND SHIPPING INSTRUCTIONS

1.0 PACKING

1.1 Packing shall be strong and sturdy such that it can withstand loading/unloading,pushing and crane lifting etc. All packaging shah be done in such a manner as toreduce volume and weight as much as possible without jeopardizing the safety ofthe material. All packing materials shall be new and unless otherwise specified,shall be of packers standard for export shipments.

1.2 Fragile articles should have special packing materials depending on type ofmaterials.

1.3 Pipes shall be packed as under:

a) Up to 50 mm NB in Wooden cases/cratesb) Above 50 mm NB and up to 100mm NB in Bundles and the bundles should

be strapped at minimum three placesc) Above 100mm NB in loose

Individual cases / bundles must contain the pipes of same size and length.Ends should be capped.

1.4 Pipes/tubes of stainless steel, copper etc., shall he packed in wooden casesirrespective of sizes.

1.6 All soft and delicate surfaces on equipment material should be carefully protected /painted with suitable coating and wrapped to prevent rusting and damage.

1.6 All mechanical and electrical equipment and other heavy articles should be securelyfastened to the bottom of the case, to avoid damage.

1.7 All packages requiring handling by crane should have sufficient space atappropriate place to put sling of suitable dia (strength). Irons/steels angle shouldbe provided at the place where sling markings are made to avoid damage topackage/equipments while lifting.

1 .8 All threaded fittings and pipes should be greased and provided with plastic caps.

1.9 Attachments and spare parts of equipments and all small pieces shall be packedseparately in wooden cases with adequate protection inside the case and sentalong with main equipment. Each item shall be tagged so as to identify it with themain equipment and part number and reference number shall be indicated.

1.10 All protrusions shall be suitably protected and openings shall be blocked bywooden/steel covers as may be required.

1.11 Wherever required equipments/materials shall be packed in polythene bags andsilica gel or similar dehydrating compound shall be put inside the bags to protectthem.

1.12 Detailed case wise packing list in water proof envelope shall be inserted in eachpackage together with equipment/material. One copy of ‘Detailed Packing List’ shallbe fastened outside of the package in water proof envelope and covered by metalcover. In case of bigger dia pipes and large equipments, documents contained in




the envelope shall be fastened inside a shell connection with an identifying arrowsign ‘Documents” applied with indelible paint.

2.0 MARKING

2.1 Each package shall be marked on three sides with proper paints/indeliblewaterproof ink as follows:

Purchaser: GAIL (India) Ltd.Destination:

Purchase Order No ………………………………….Net Wt ………………………………….Kgs ………………………………….Gross Wt………………………… Kgs.Dimensions ………………………………….X………………………………….X…………………………………. CMPackage No. (S. No. of total packag4s) ………………………………….………………………………….Seller’s Name ………………………………….………………………………….

2.2 Letters, hares, marks etc ,used for marking shall he stencil printed. Handwritingshould be avoided as for as possible. Size of letters shall be optimum for eachpackage dimension.

2.3 In case of bundles or other packages wherever marking can not be stenciled sameshall he embossed on metal or similar tag and wired securely at minimum twoconvenient points and both ends shall be suitably protected/covered. In case ofloose pipes sticker of above markings should be pasted on inner wall corner of eachpipe on both sides.

3.0 SHIPMENT

3.1 BY SEA

a) FOR FOB CONTRACTS

Shipping arrangements will he made by the Shipping Co-ordination OfficerChartering Division, Ministry of Surface Transport, New Delhi through theirforwarding Agents Nominees as indicated to whom adequate notice of notless than six weeks about the readiness of the cargo for shipment, shouldbe given by the Seller for finalizing the shipping arrangements.

i) For Consignment from UK/Continent Ports:M/s Kuehne & Nagel(AG&CO) PH: + 4949 - 73337373PINKERT WEG 20, 22113, Hamburg, FAX: + 4940 —7333 79373GERMANY E-mail: [email protected]

ii) For consignment from USA, Atlantic, Gulf & Vest Ports.M/s. OPT OVERSEAS PROJECT TRANSPORT INC.46, SELLERS STREET, KEARNY PH: + 1 201 998 7771NEW JERSEY 07032, USA FAX + 1 201 998 7833

iii) For Consignment from Japanese Ports: PH: + 81 3 3262 2391The Embassy of India, Tokyo, Japan FAX: + 81 332344866

iv) Black Sea Ports of Bulgaria & Romania:The Secretary lndo-Soviet Shipping Service CABLE:SHIPINDIA, MUMBAIC/o The Shipping Corporation of India Limited FOR INDOPOL SOVINSHIP




‘Shipping House’ 245, Madam Cama Road Ph No.: 91-22-22026666/22026785 MUMBAI —400 021.

v) Polish Ports:The Secretary, lndo-Polish Shipping ServiceGb Shipping Corporation of India Limited Cable: SHIPINDIA, MUMBAIShipping House 245, Madam Cama Road FOR INDOPOLMUMBAI —400 021.

vi) For Consignment from other Areas:The Shipping Corporation of India LimitedShipping House, Cable: SHIPINDIA, MUMBAI245, Madam Cama RoadMUMBAI —400021.

b) FOR CFR/CIF CONTRACTS

The seller shall arrange shipment of stores by vessels belonging to themembers of the Conference Lines. If seller finds that space on theConference Line Vessels is, not available in any specific shipment, heshould inform the Shipping Co-ordination Officer, Ministry of SurfaceTransport. 1, Sansad Marg, New Delhi — 110001 (india) (CABLE: N SCHART: NEW DELHI: FAX NO. +91 11 23718614/23352726)

3.2 All shipment of materials shall be made by First class direct vessels. All shipmentsshall be under deck unless carriage on deck is unavoidable.

3.3 BY AIRWherever the shipments are to be effected by Air, the same shall be dispatchedTHROUGH Air India.

4.0 SHIPPING DOCUMENTATION

4.1 All documents shall be in English Language.

4.2 DOCUMENTS REQUIRED BEFORE SHIPMENT

Proforma Packing Lists and sketches of Over Dimensioned Cargo should beforwarded to Purchaser in triplicate.

4.3 DOCUMENTS REQUIRED AFTER SHIPMENT

4.3.1 The Supplier shall air mail the shipping documents stated hereinbelow after theshipment has been made so that the same are received at least two weeks prior tothe arrival of vessel at destination Port. Copies to Port Office must be sentimmediately through International Courier.

4.3.2 The Supplier shall be fully responsible for any delay and/or demurrage that maybecome payable at destination Port on account of delay in transmittal of following




shipping documents.

i) Commercial Invoiceii) Bill of Ladingiii) Inspection Release Noteiv) Packing Listv) Freight Memovi) Certificate of Originvii) Test Certificateviii)Test Certificateix) Certificate of Measurement and Weight

4.3.3 One set each of the above documents is to be sent by first class courier toPurchaser at the address given in the Bidding Document and to Engineer-in-Charge (Respective Project Sites).

4.3,4 In case of air shipments, two sets of non-negotiable documents consisting ofCommercial Invoice (ink signed). Packing list, Certificate of Origin, TechnicalLiterature shall be handed over to Airlines with the instructions that the sameshould be handed over along with cargo arrival notice and copy of Airway Bill toDestination Airport Notify party.

4.4 BILL OF LADING

Bill of lading shall be ‘Clean on Board’. Ocean Bill of Lading be made in favour ofPurchaser or order OF the bank (and not order of the shipper)and the notifycolumn should indicate GAIL (India) Limited with address

4.5 PACKING LIST

Packing list must show, apart from other particulars actual contents in each case,net and gross weights and dimensions and the total number of packages.

In case of pipes and plates in bundles, number of pipes/plates with individuallength/size in each bundle must Be indicated.

5.0 SHIPPING ADVICE

5.1 Within 48 hours after shipment, the Supplier SHALL send shipping advice by wayof Cable Fax to Engineer-in-Charge at respective project sites and Purchaser at theaddress given below in clause 6.0. giving particulars of the shipment, vessel’sname/Airlines, Flight No. & Date on which materials actually left (and NOTtentative flight No. and Date), Port of Shipment, Bill of Lading No. & Date,contents in brief. Purchase Order Number, total FOB. and Freight Values, numberOF Packages and total gross weight, ETD & ETA of vessel. In case of Air shipmentthrough consolidation services, information must contain both Master Air Way no.& House Airway Bill no.




5.2 In case of free replacement supply of components/parts. the supplier shall adviseby cable Fax above dispatch particulars ALONGWITH specific statement ‘FreeSupply’ Value for customs purposes only’.

6.0 ADDRESSES

6.1 Project Consignee:GAIL (India) Limited(Address)……………………………….……………………………….

6.2 Consignee (for sea port/ airport of entry):

6.3 Dy. General Manager (C&P)GAIL (India) LimitedMMRDA Building, 3”’ FlourBandra Kurta Complex, Bandra (East)Mumbai 400051Phone +91 2226592261/622Fax: *91-11-26185941Ext. 2404#Email: [email protected]

6.4 Storehouse(s):

The addresses would be furnished later but prior to despatch.

6.5 Bankers

State Bank of IndiaCAG Branch, Vijaya Building, 5/10 floor17, Barakhamba RoadNew Delhi 110001

6.6 Paying Authority:

6.7 F&A In chargeGAIL (India) Limited

7.0 SHORT SHIPMENTS

7.1 Seller should thoroughly check all items in the packing before effecting shipment, Ifany item(s) are found short packed in sound boxes on examination at project site.Seller shall be responsible to supply short packed items free of charge on receipt ofadvice from Purchaser. Seller shall also be responsible to bear the import dutylevied by Indian Customs on such short packed items.


PACKING, MARKING AND SHIPPINGINSTRUCTIONS(DOMESTIC)


F – 9B

[APPLICABLE FOR DOMESTIC TENDERS]PACKING, MARKING AND SHIPPING INSTRUCTIONS

The Packing, Marking, Shipping and Documentation for Goods shall be as follows:

a) The SUPPLIER shall provide such Packing of GOODS as is required to prevent theirdamage or deterioration during transit to their final destination as indicated in theCONTRACT. The Packing shall be sufficient to withstand, without limitation, roughhandling during transit and exposure to extreme temperatures, salt andprecipitation during transit and open storage. Packing case size and weights shalltake into consideration, where appropriate, the remoteness of the GOODS finaldestination and the absence of heavy handling facilities at all points in transit.

b) The packing, markings and documentation within and outside the packages, shallcomply strictly with such special requirements as shall be expressly provided for inthe documents.

c) SUPPLIER shall comply with all applicable prescriptions in the specifications. Lack ofrelevant information and/or documents shall not absolve the SUPPLIER of hisresponsibilities.

d) Supplier shall ensure that consignments destined for different project sites asdetailed in Purchase Order are packed separately and marked clearly.

1.0 SPECIFICATIONS FOR GOODS BEING PROCURED INDIGENOUSLY

1.1 Packing

1.1.1 The packing specifications incorporated herein are supplementary to the internaland external packing methods and standards as per current general rules of IRCAGoods Tariff Part I. All packaging shall be done in such a manner as to reducevolume as much as possible. Fragile articles should be packed with special packingmaterials depending on the type of materials.

1.1.2 Items shipped in bundles must be securely tied with steel wire or strapping. Steelreinforcing rods, bars, pipes, structural members etc. shall be bundled in uniformlengths and the weight shall be within the breaking strength of the securing wire orstrapping.

1.1.3 All delicate surface on equipments/materials should be carefully protected andpainted with protective paint/compound and wrapped to prevent rusting anddamage.

1.1.4 All mechanical and electrical equipment and other heavy articles shall be securelyfastened to the case bottom and shall be blocked and braced to avoid anydisplacement/shifting during transit.




1.1.5 Attachments and spare parts of equipment and all small pieces shall be packedseparately in wooden cases with adequate protection inside the case and whereverpossible should be sent along with the main equipment. Each item shall be suitablytagged with identification of main equipment, item denomination and referencenumber of respective assembly drawing. Each item of steel structure and furnacesshall be identified with two erection markings with minimum lettering height of 15mm. Such markings will be followed by the connection number in indelible ink/paint. A copy of the packing list shall accompany the material in each package.

1.1.6 All protrusions shall be suitably protected by providing a cover comprising of atightly bolted wooden disc on the flanges.

1.1.7 Wherever required, equipment/materials/instruments shall be enveloped inpolythene bags containing silicagel or similar dehydrating compound.

1.1.8 All pipes and tubes of stainless steel, copper, etc., shall be packed in wooden caseor crates irrespective of their size.

1.1.9 Pipes with threaded or flanged ends shall be protected with suitable caps/covers,before packing.

1.1.10 Detailed packing list in waterproof envelope shall be inserted in the packagetogether with equipment/material. One copy of the detailed packing list, shall befastened outside of the package in waterproof envelope and covered by metalcover.

1.1.11 The supplier shall be held liable for all damages or breakages to the goods due tothe defective or insufficient packing as well as for corrosion due to insufficientprotection.

1.1.12 Packaged equipment or material showing damage, defects or shortages resultingfrom improper packaging material or packing procedures or having concealeddamage or shortages, at the time of unpacking, shall be to the supplier’s account.

1.2 Marking

1.2.1 Each package shall be marked on three sides with proper paints/indeliblewaterproof ink as follows:

(OWNER)PROJECT

(DESTINATION)

Purchase order No. _________________________________________________________Net Wt.__________________________ Kgs. Gross Wt. _________________________ Kgs.Dimensions________________________X____________________X _______________CMS.Package No. (S. No. of total Packages)___________________________________________Supplier’s name______________________________________________________________




1.2.2 Additional marking such as ‘HANDLE WITH CARE’ ‘THIS SIDE UP’ ‘FRAGILE’ or anyother additional indications for protection and safe handling shall be addeddepending on the type of material.

1.2.3 Specific marking with white paint for ‘SLINGING’ and ‘CENTRE OF GRAVITY’ shouldbe provided for all heavy lifts weighing 5 Tonnes and above.

1.2.4 In case of bundles/bags or other packages, wherever marking cannot be stenciled,the same shall be embossed on metal or similar tag and wired securely at twoconvenient points.

1.3 Despatch(a) Despatch of materials shall be made in accordance with the relevant terms

of the CONTRACT FORM. Any change in mode of transport shall be resortedto only after prior approval in writing. SUPPLIER shall ensure despatch ofGOODS immediately after they are inspected and released and shallintimate status of despatch by fax to- DGM (Projects), GAIL, New Delhi, Fax no. : 011-26185941-91181#- Addl. GM (O&G), MECON, Delhi – Fax no. 011 – 2041214/ 2421310- Respective consignee fax nos. at site (to be indicated in Purchase

Order).

(b) Despatch by Road(i) The SUPPLIER shall be responsible for despatch of materials through

a reliable Bank approved transport company unless, the TransportCompany is named by PURCHASER.

(ii) The SUPPLIER shall ensure with Transport Company the delivery ofmaterials within a reasonable transit period. SUPPLIER shall alsoobtain from transporter particulars of Lorry Number, transporter'sChallan Number, destination of Lorry (if transhipment is involved),Transporter's Agent at destination, if any, etc. and intimate samefollowing:-

- DGM (Projects), GAIL, New Delhi, Fax no. : 011-26185941-91181#- Addl. GM (O&G), MECON, Delhi – Fax no. 011 – 2041214/ 2421310- Respective consignee fax nos. at site (to be indicated in Purchase

Order).

(c) Shipment by AirWhenever SUPPLIER is instructed by the PURCHASER or its representativeto airfreight any material, the SUPPLIER shall take prompt action for thesame. Immediately after air shipment is effected, the SUPPLIER shallintimate by Fax the details of Airway Bill number and date, Flight number,number of packages etc. to the OWNER'S and PURCHASER'S authorities atdestination Airport City. Details of GAIL’s agents shall be intimated later.

(d) Advance InformationImmediately after a shipment is made SUPPLIER shall send advanceinformation such as the particulars of materials, value, Purchase OrderNumber, date of despatch, Railway receipt Wagon Number/ GOODS




Consignment note number, Truck number, name of transport company andtheir destination Office/ Associate's address etc., by way of Fax to following:

- DGM (Projects), GAIL, New Delhi, Fax no. : 011-26185941-91181#- Addl. GM (O&G), MECON, Delhi – Fax no. 011 – 2041214/ 2421310- Respective consignee fax nos. at site (to be indicated in Purchase

Order).

(e) Transmission of Despatch Documents

SUPPLIER shall, within 48 hours of the despatch of the GOODS dependingupon the payment terms of the CONTRACT FORM either negotiate throughPURCHASER'S Bankers or forward direct to PURCHASER at respectiveconsignee address by Registered Post the following Documents in Original.

(i) Two copies of the SUPPLIER invoice showing descriptions of theGOODS, Quantity, unit price and total amount.

(ii) Delivery Note/Railway Receipt/Truck Receipt.(iii) Manufacturer's/SUPPLIER's Guarantee Certificate(iv) Inspection Certificate issued by the PURCHASER/CONSULTANT

and/or its representative and the SUPPLIER'S factory inspectionreport. Copies of the above documents shall be sent to the followingaddresses :

A Dy. General Manager (Projects)GAIL (India) Limited,16, Bhikaji Cama Place,R.K. Puram, New Delhi-110066,INDIA

B The Dy. General Manager (C&P)GAIL (India) Limited,16, Bhikaji Cama Place,R.K. Puram, New Delhi-110066INDIA

C GM (Oil & Gas),MECON Limited,15th Floor, North Tower, Scope Minar,Laxmi Nagar District CentreDelhi - 110 092, INDIA

E. Office InchargeGAIL (India) Limited,Respective GAIL Site(s) address to be intimated later.

(f) The SUPPLIER shall be responsible for any delay in clearance of theConsignment at destination and consequent wharfage/demurrage, if any,due to delay in transmittal of the Lorry/Railway receipt Consignment Note,etc.

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