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GSU AND GPU MODIFICATION JOBSFOR

GAIL (India) LIMITEDPATA -206241 , DIST. : AURAIYA ( UP)

(4288)

TENDER DOCUMENT

FOR

FITTINGS , FLANGES , SPECTACLE BLINDS ANDOTHER ITEMS

( TENDER NO. PNMM/ 4288/E/ 6401 /ICB )

PROJECTS & DEVELOPMENT INDIA LIMITED(A GOVT. OF INDIA UNDERTAKING)

PDIL BHAWAN, A-14, SECTOR-1NOIDA 201 301

DIST. GAUTAM BUDH NAGAR(U.P.), INDIA

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Contents

Section I. Invitation for Bids (IFB) 3

Project Synopsis 7

Bid Evaluation Criteria 8

Acknowledge-cum-Consent Letter 9

Section II. Instructions to Bidders (ITB) 10

Section III. Forms & Formats 27

Section IV. General Conditions of Contract (GCC-Goods ) 46

Section V. Special conditions of contract ( SCC ) 74

Section VI. Price Schedule (Indian & Foreign Bidders) 82

Section VII Packing, Marking and Shipping Instructions 92

Section VIII Technical Specification & Scope of Supply 98



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SECTION I

INVITATION FOR BID



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PROJECTS & DEVELOPMENT INDIA LIMITED( A Govt. of India Undertaking )

Post Box No. 125, A-14, Sector-1Noida – 201301, Dist. Gautam Budh Nagar

(U.P.) India

E-Mail: [email protected] Fax: 0120-2529801 0120-2532574

Phone: 2529842/3 2529847/51

INVITATION FOR BID ( IFB )LIMITED ICB

TO Tender No. PNMM/ 4288/E/ 6401 /ICB

Date of Issue 03.11.2006Pre-Bid meeting 17.11.2006 ( 15.00 Hrs. IST )Bid Closing Date & Time 04.12.2006 (15.30 Hrs IST)Tech. Bid opening Date &Time

04.12.2006 (15.30 Hrs IST)

Price Bid opening Date &Time

Shall be intimated later

Venue of Bid opening PDIL, NOIDA (India)Type of Bid Two stage / Public opening

Limited ICBEarnest Money Deposit Rs.1,00,000 / US$ 2175Required Delivery Period 5 Months from acceptance of

LOI ( FOT Works for IndianBidders ) / 4 Months fromacceptance of LOI (FOB forForeign Bidders )

Projects & Development India Limited invites sealed Bids on behalf of M/s GAIL India limitedfor their GSU and GPU modification jobs at GAIL , Pata , Auraiya ,U.P for following items:

SL.NO. DESCRIPTION QUANTITY

1. Design , Engineering , Manufacture , Inspection & Testing ,painting and Supply of Fittings , Flanges , Spectacle Blindsand other items as per Technical Specification No 4288 –MPTS-6102 Rev 1 enclosed herewith .

As per the Priceschedule Doc.No. 4288-6401-Rev. 2

Inspection authority: TPI ( Lloyds/PDIL/BVIS )

This Bid is issued under LIMITED INTERNATIONAL COMPETITIVE BIDDING procedure.For preparation and submission of Bids, evaluation and comparison of Bids, kindly refercommercial documents enclosed .



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1.0 Bid Evaluation Criteria

Any bidder who meet the Bid Evaluation Criteria (BEC) as per Tender Document andwishes to quote against this tender may download the bidding document from GAIL swebsite (www.gailonline.com) and submit the Bid complete in all respect as per terms &conditions of contract on or before the due date.

Offer(s) received from short listed bidders as well as through web site which meet theBEC criteria, shall be taken into consideration for evaluation & award.

2.0 Bid Document is non-transferable. Bidder must bid directly.

3.0 Please acknowledge receipt and respond per return mail and submit bid complete inall respect to undersigned within the DUE DATE AND TIME. Bids through Fax/ E-mailshall not be considered.

4.0 The Bid Document calls for offers on single point “Sole Bidder” responsibility basis.

Order will be placed on the “Sole Bidder” alone (in whose name the bid document hasbeen issued) who will be responsible for all contractual purposes.

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

5.0 The bid should be prepared by the “Sole Bidder” and should be sent to PDIL directly.PDIL/ GAIL reserves the right to reject offers made by intermediaries/representatives.

6.0 Bidder shall ensure that Bid Security having a validity of 2 months beyond the offervalidity i.e. validity of 8 months from the bid due date, must accompany the offer in theformat made available in the Bid Document. Any offer, unaccompanied with BidSecurity (Part-III) will not be opened.

7.0 This Invitation for Bids (IFB) is an integral and inseparable part of the enclosed BidDocument.

8.0 Bids complete in all respect must reach at the address mentioned below not later than15. 30 hours on the notified date of Closing of the Tender. Bids sent by post, shouldbe sent under Registered Cover / Courier .

9.0 Bidders may depute their authorised representative to attend the bid opening. Biddersselected for opening of their price bid shall be informed about the date and time ofprice bid opening.

10.0 Any change in the bid after due date of submission of tender will not be considered.

11.0 Bidders are advised in their own interest to ensure that their bids reach well before theclosing date and time of the tender as the bids received after the closing date and timeof the tender will not be considered.

12.0 Please confirm that you have received the tender document and will be quoting for thetender items / jobs . If not bidding, please return this tender document along withregret letter with in due date & time with reason(s) of not participating in thetender.



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13.0 GAIL / PDIL reserves the right to accept or reject any or all offers without assigningany reason, whatsoever.

14.0 GAIL / PDIL reserves the right to allow Purchase preference to Public SectorUndertakings as admissible under the prevailing policy.

NOTE: 1. The Indian Bidders must take note of current Finance Bill and EXIM Policy whilebidding.

2. Please furnish two valid Email IDs for further communication.

For & on behalf ofProjects & Development India Ltd.

R. R. KUMARDy. Materials ManagerProjects and Development India Ltd.A-14 , Sector-1PDIL Bhawan , Noida-201301Email : [email protected] / [email protected]



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PROJECT SYNOPSIS

GAIL Pata is situated in the Auraiya district ( 80 Km from Kanpur ) , UttarPradesh . GAIL Pata wishes to modify the existing Gas Sweetening Unit(GSU ) and Gas Processing Unit (GPU) for processing 14 MMSCMD ofnatural gas and 13.3 MMSCMD of sweet gas respectively.

The Gas Sweetening Unit (GSU) used for the removal of CO2 from feednatural gas coming from the HVJ pipeline ( GAIL’s own pipeline network ) isdesigned to handle a gas quantity of 12.66 MMSCMD at present. The sweetgas from GSU enters the Gas Processing Unit (GPU) in which ethane andheavier liquid hydrocarbons are produced and the remaining lean gas(mainly methane) is sent back to the HVJ pipeline.



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BID EVALUATION CRITERIA ( BEC )

a. The bidder must be a manufacturer/ supplier of Fittings, Flanges, SpectacleBlinds and other items for which they are submitting the bids. The biddermust submit proof of manufacturing (in case of a manufacturer) or validauthorization letter from the proposed manufacturer (in case of a supplier).

b. In addition to above, the bidder must have executed at least one purchaseorder for 50% of the quantity being quoted against SOR items in precedingfive years ending as on the due date of technical bid opening. The biddermust submit copies of purchase order and proof of execution i.e. executioncertificate of client/ inspection certificate of client/ invoice/challan/ paymentcertificate of client etc. for meeting the above criteria.

SUBMISSION OF ATTESTED COPY OF CERTIFICATES/DOCUMENTARYEVIDENCES:

The bidders are required to submit the copies of all certificates/documentaryevidence duly attested by Gazetted Officer / Officer of Public SectorEnterprises/Notary Public towards the proof of meeting the stated bidderseligibility criteria :

• Attested copies of all relevant documents viz. Purchase Order, ExecutionCertificate and all the documents as mentioned in BEC .

• Attested copy(ies) of Partnership Deed (in case of Partnership Firm) andArticles of association in case of Limited Company and Power of Attorney.

• An undertaking (by the bidders who quotes by downloading the tender fromwebsite) on non-judicial stamp paper of appropriate value stating that thecontents of tender documents have not been modified or altered by M/s ……(Name of the bidder with complete address). In case, it is found that tenderdocument has been modified / altered by the bidder, the bid submitted byM/s………………….. ( Name of the bidder) shall be liable for rejection at anystage of bidding process .

Non-submission of the attested copies of the requisite certificates / documentsshall render the bid non-responsive and shall be liable for rejection.

Please note that this is a zero deviation tender. Bidders are advised tostrictly confirm compliance to tender conditions and not to stipulate anydeviation / conditions in their offer. Subsequent to bid submission, GAIL/ PDIL shall not seek confirmations / clarifications and any bid (s) not inline with tender conditions shall be liable for rejection. Bidders are alsorequested to submit the documents / confirmations strictly as per theCheck List enclosed with the tender documents.



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ACKNOWLEDGEMENT CUM CONSENT LETTER

(Within 7 days of receipt of Bidding document, Bidder shall acknowledge the receipt and confirm his intention to Bidagainst the enquiry/tender through e-mail to [email protected] , [email protected] or per return FAX by filling

up the this Format.)

To,Materials ManagerProjects and Development India ltd.A-14 , Sector-1 , NoidaDistt. GautamBudh Nagar ( 201301 ) FAX: 0120-2510858 , 2532574

Dear Sir,

We hereby acknowledge receipt of a complete set of bidding document along with enclosuresfor subject item/work.

We undertake that the contents of the above bidding document shall be kept confidential andfurther that the drawings, specifications and documents shall not be transferred and that thesaid documents are to be used only for the purpose for which they are intended.

A) We intend to bid as requested for the subject item/work and furnish following detailswith respect to our quoting office:(i) Postal Address : . .(ii) Telephone Number : (iii) Telefax Number : ..(iv) Contact Person : ..(v) E-mail Address : ..

B) Details of Contact person:

(i) Postal Address : . .(ii) Telephone Number : (iii) Fax Number : ..(iv) Contact Person : ..(v) E-mail Address : ..

C) We are unable to bid for the reasons given below and we are returning back the entireset of bidding documents.

Reasons for non-submission of bid:

Agency s Name : ..Signature : ..Name : ..Designation : ..Date : ..Seal/Stamp :



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SECTION II.

INSTRUCTIONS TO BIDDERS

Table of Clauses

A. IntroductionB. Bidding DocumentsC. Preparation of BidsD. Submission of BidsE. Bid Opening and EvaluationF. Award of Contract



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INSTRUCTIONS TO BIDDERS

A. INTRODUCTION

1. Scope of Bid 1.1 The Purchaser as defined in the General Conditions of Contract-Goods, hereinafter “GAIL/PDIL” wishes to receive bids for the supplyof goods.

1.2 The successful bidder will be expected to complete the Scope ofsupply within the period stated in Invitation for Bid

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

2. EligibleBidders

2.1 Bidders shall, as part of their bid, submit a written power of attorneyauthorizing the signatory of the bid to bind the bidder.

2.2 This Invitation for Bids is open to all the pre-qualified bidders as wellas bidders downloading the tender document from website .

2.3 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 beenengaged by GAIL/PDIL to provide consulting services for thepreparation of the design, specifications and other documents to beused for the procurement of the goods to be purchased under thisInvitation for Bids.

2.4 The bid should be from actual manufacturers.

2.5 The bidder shall not be under a declaration of ineligibility by GAIL/PDILfor corrupt or fraudulent practices as defined in ITB.

2.6 The bidder is not put on holiday by PURCHASER (GAIL/PDIL) or blacklisted by any Government Department/ Public Sector.

3. One Bid PerBidder

3.1 A bidder who submits or participates in more than one bid will causeall the proposals in which the bidder has participated to bedisqualified.

4. Bid EvaluationCriteria

Refer IFB.

5. Cost of Bidding 5.1 The bidder shall bear all costs associated with the preparation andsubmission of the bid, and PURCHASER (GAIL/PDIL), will in no case,be responsible or liable for these costs, regardless of the conduct oroutcome of the bidding process.



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B. BIDDING DOCUMENTS

6. Content ofBiddingDocuments

6.1 The bidding documents are those stated below and should be read inconjunction with any addenda issued in accordance with Tenderdocument

Section-I : Invitation for bids (IFB) Section-II : Instructions to Bidders (ITB) Section-III : Forms and Formats Section-IV : General Conditions of Contract (GCC – Goods ) Section-V : Special conditions of contract Section- VI : Price Schedule ( Indian and foreign Bidders ) Section VII : Packing, Marking & Shipping instruction Section VIII : Technical Specifications & Scope of Supply

6.2 The Bidder is expected to examine all instructions, forms, terms andspecifications in the bidding documents. The Invitation for Bids (IFB)together with all its attachments thereto, shall be considered to beread, understood and accepted by the bidders. Failure to furnish allinformation required by the bidding documents or to submit a bid notsubstantially responsive to the bidding documents in every respect willbe at the Bidder’s risk and may result in the rejection of its bid.

7 Clarification ofBiddingDocuments

7.1 A prospective bidder requiring any clarification of the BiddingDocuments may notify GAIL/PDIL in writing or by fax or e-mail atGAIL/PDIL’s mailing address indicated in the Invitation for Bids.GAIL/PDIL will respond in writing to any request for clarification of theBidding documents which it receives not later than 10 days prior to thedeadline for the submission of bids prescribed by GAIL/PDIL. Writtencopies of GAIL/PDIL’s response (including an explanation of the querybut without identifying the source of the query) will be sent to allprospective bidders who have received the bidding documents. AnyClarification or information required by the bidder but same notreceived by the GAIL/PDIL, ten days prior to the bid due date, thesame is liable to be considered as no clarification/informationrequired.

8. Amendment ofBiddingDocuments

8.1 At any time prior to the bid due date, GAIL/PDIL may, for any reason,whether at its own initiative or in response to a clarification requestedby a prospective bidder, modify the bidding documents, by issuingaddenda.

8.2 Any addendum thus issued shall be part of the Bidding Documentspursuant to ITB Clause-6.1 and shall be notified in writing by fax/postto all prospective bidders who have received the bidding documents.Prospective bidders shall promptly acknowledge receipt of eachaddendum by fax/post to the Purchaser.

8.3 GAIL/PDIL may, at its discretion, extend the bid due date in order toallow prospective bidders, a reasonable time to furnish their mostcompetitive bid taking into account the amendments issued.

C. PREPARATION OF BIDS

9 Language ofBid

9.1 The bid prepared by the bidder as well as allcorrespondence/drawings and documents relating to the bidexchanged by bidder and GAIL/PDIL shall be written in English



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language, provided that any printed literature furnished by the biddermay be written in another language so long as accompanied by anENGLISH translation, in which case, for the purpose of interpretationof the bid, the ENGLISH translation shall govern.

9.2 In the event of submission of any document/certificate by the Bidder ina language other than English, the English translation of the sameduly authenticated by Chamber of Commerce of Bidder’s country shallbe submitted by the Bidder. Metric measurement system shall beapplied.

10 DocumentsComprisingThe Bids

10.1 The bid prepared by the bidder shall comprise the followingcomponents:

10.1.1 UNPRICED BID ( Part –I )a) Price Schedule (with price figures blanked) completed in

accordance with ITB Clauses 11, 12, 13.b) Documentary evidence establishing that Bidder is eligible to bid

and meets qualification criteria in accordance with ITB Clause 14.c) Documentary evidence establishing Goods’ eligibility and

conformity to Bidding Documents in accordance with ITB Clause15.

d) Copy of Bid Security in accordance with ITB Clause 17.e) Any other information/details required as per bidding document

including addendum /corrigendum to this bidding document, ifissued.

10.1.2 PRICED BID ( Part –II )Bid Form and Price schedule duly filled in and No conditionswhatsoever. .

10.1.3 Original Bid Security (Part-III)

11. Bid Form &Price Schedule

11.1 The bidders shall complete the Bid Form and appropriate Priceschedule furnished in the Section V of Bidding Document, indicatingthe required information for all the goods to be supplied, a briefdescription of the goods, their country of origin and quantity.

12. Bid Prices 12.1 Indian Bidders shall indicate the following separately (as per PriceSchedule) .A) Ex-works Price including packing and forwarding charges (such

price to include all costs as well as duties and taxes paid orpayable on components and raw materials incorporated or to beincorporated in the goods).

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

C) The bidders shall indicate break-up of the quantum of importsinvolved for import of necessary raw materials and componentsgiving CIF value of Import in applicable currency considered andincluded in bid price. Essentiality certificate may be provided bythe Purchaser for Project imports wherever applicable.

E) The statutory variation in Excise Duty & Sales Tax on finishedgoods within the contractual delivery period shall be toGAIL’s account. However, any increase in the rate of thesetaxes and duties beyond the contractual completion period shallbe to bidder's account and any decrease shall be passed on toGAIL. Further, any statutory variation in the rate of customs duty(except CVD) within contractual delivery period, on the actual CIFvalue of import content, but subject to maximum of such duty



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payable on quoted CIF value, shall also be to GAIL’s account. Incase of delay in delivery, any increase in the rate of customs dutybeyond the contractual completion period shall be to bidder'saccount and any decrease shall be passed on to GAIL.

NOTE: 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 shall be arranged by GAIL.

12.3 Foreign Bidders shall submit prices separately for the following (as perPrice Schedule – Section V I )A) FOB port of shipment inclusive of all taxes, duties and storage

charges upto FOB port of Shipment basis.B) CFR port of discharge (INDIA).C) CIF Port of discharge (INDIA).

12.4 The bidder’s break-up of price components in accordance with abovesub-clauses will be solely for the purpose of facilitating thecomparison of bids and will not in any way, limit GAIL/PDIL’s right tocontract on different terms.

12.5 Fixed Price : Prices quoted by the bidder shall be firm and fixed duringthe bidder’s performance of the contract and not subject to variationon any account except for variations permitted under 12.1(E) fordomestic bidders. A bid submitted with an adjustable price quotationwill be treated as non responsive and rejected.

12.6 The delivery terms shall be interpreted as per INCOTERMS 2000.

13 Bid Currencies 13.1 Domestic bidders may submit bid in any currency (including IndianRupees) and receive payment in such currency at par with foreignbidder.

13.2 Foreign bidders may submit bid in home currency of bidder’s countryor in US Dollars / EURO or in any other currency.

13.3 Currency once quoted will not be allowed to be changed. GAIL/PDILshall not be compensating for any exchange rate fluctuation.

14 DocumentsEstablishingBidder’sEligibility andQualification

14.1 Bid Evaluation Criteria14.1.1 Pursuant to evaluation Criteria specified in Invitation for Bids (IFB) the

bidder shall furnish all necessary supporting documentary evidence toestablish the bidder’s claim of meeting Bid evaluation criteria.

14.2 Bidders Eligibility Criteria

14.2.1 The bidder shall furnish, as part of his bid, documents establishing thebidder’s eligibility to bid and its qualification to perform the contract ifits bid is accepted.

14.2.2 The documentary evidence of the bidder’s qualifications to performthe contract if his bid is accepted, shall establish to GAIL/PDIL’Ssatisfaction :

a) The Bidder has the financial, technical and production capacity necessary to perform the contract;

c) that, in case of a Bidder not doing business in India , theBidder is or will be (if awarded the contract) represented by an Agentin that country equipped and able to carry out the Supplier’s



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maintenance, repair and spare parts-stocking obligations prescribed inthe Conditions of Contract and/or Technical Specifications.

14.2.3 GAIL/PDIL will determine to its satisfaction whether the bidderselected as having submitted the lowest evaluated, responsive bid isqualified to satisfactorily perform the contract. An affirmativedetermination will be pre-requisite for award of the Contract.

15 DocumentsEstablishingGoods’Eligibility andConformity toBiddingDocuments

15.1 Pursuant to ITB Clause 10, the bidder shall furnish, as part of the bid,documents establishing the eligibility and conformity to the BiddingDocuments of all goods and services which the bidder proposes tosupply under the Contract.

15.2 The documentary evidence of the goods and services’ conformity tothe Bidding Documents may be in the form of literature, drawings ordata, and shall furnish:

a) detailed description of the essential technical and performancecharacteristics of the goods;

b) a clause-by-clause commentary on the PURCHASER’S Technicalspecifications demonstrating the goods and services’ substantialresponsiveness to the specifications.

15.3 For purpose of the commentary to be furnished under Clause-15.2above, the bidder shall note that standards for workmanship, materialand equipment, and reference to brand names or catalogue numbers,designated by the PURCHASER in its Technical Specifications areintended to be descriptive only and not restrictive.

16 Period ofValidity of Bids

16.1 The bid shall remain valid for acceptance for SIX (6) months from thedate of opening of techno-commercial bid . GAIL/PDIL shall reject abid valid for a shorter period being non-responsive.

16.2 In exceptional circumstances, prior to expiry of the original bid validityperiod, GAIL/PDIL may request that the bidder extend the period ofbid validity for a specified additional period. The requests and theresponses thereto shall be made in writing (by fax / post/ e-mail). Abidder may refuse the request without forfeiture of his bid security. Abidder agreeing to the request will not be required or permitted tomodify his bid, but will be required to extend the validity of its bidsecurity for the period of the extension and in accordance with ITBClause 17.0 in all respects.

17 Bid Security 17.1 Pursuant to ITB Clause-10, the bidder shall furnish, as part of his bid,bid security in the amount specified in the Invitation for Bids.

17.2 The bid security is required to protect GAIL/PDIL against the risk ofbidder’s conduct which would warrant the security’s forfeiture,pursuant to ITB Clause-17.7

17.3 The bid security in US Dollars for bidders quoting in foreign currencyand Indian Rupees for bidders quoting in Indian Rupees shall be inthe form of Demand Draft/ Banker’s Cheque in favour of GAIL (India)Limited, payable at PATA (issued by Indian Nationalised / Scheduledbank or first class International bank) or in the form of BankGuarantee/ irrevocable Letter of Credit as per format enclosed in theBidding Document.



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GAIL shall not be liable to pay any bank charges, commission orinterest on the amount of bid security.

In case, bid security is in the form of Bank Guarantee or Letter ofCredit, the same shall be from any Indian scheduled bank or a branchof an International bank situated in India and registered with Reservebank of India as scheduled foreign bank in case of Domestic andfrom any reputed International bank or Indian scheduled bank in caseof foreign bidder. However, in case of Bank Guarantee/Letter of Creditfrom banks other than the Nationalised Indian banks, the bank mustbe commercial bank having net worth in excess of Rs 100 crores anda declaration to this effect should be made by such commercial bankeither in the Bank Guarantee / Letter of Credit itself or separately onits letterhead.

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

17.4 Any bid not secured in accordance with ITB Clause 17.1 and 17.3may be rejected by GAIL/PDIL as non-responsive.

17.5 Unsuccessful bidder’s bid security will be discharged / returned, aspromptly as possible but not later than 30 days after the expiration ofthe period of bid validity prescribed by the PURCHASER, pursuant toITB Clause-16.

17.6 The successful bidder’s bid security will be discharged upon thebidder’s accepting the Order, pursuant to ITB Clause-42 andfurnishing the Contract Performance Guarantee pursuant to ITBClause-43.

17.7 The bid security may be forfeited:a) If a bidder withdraws his bid during the period of bid validity

specified by the bidder .b) in the case of a successful bidder, if the bidder fails:

ii) to accept the Purchase Order in accordance with ITBClause-42 or

iii) to furnish Performance Guarantee in accordance withITB Clause-43

iv) to accept correction of errors pursuant to ITB Clause-32.0

c) If the Bidder changes the proposed manufacturer/specificationsetc. after submission of his bid.

17.8 Bid Security should be in favour of GAIL (India) Limited andaddressed to GAIL. Bid Security must indicate the Bid Documentnumber and the item for which the bidder is quoting. This is essentialto have proper co-relation at a later date. The Bid Security in the formof Bank Guarantee or Letter of Credit shall be in the form provided inthe Bidding Document.

17.9 For Domestic Bidders : Central Public Sector Undertakings and firmsregistered with NSIC are exempted from furnishing bid securityprovided they are registered for the quoted items upto the monetarylimit they intend to quote and subject to their enclosing with their bid acopy of the latest and current Registration Certificate.



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18 Pre –BidMeeting

18.1 The bidder(s) or his designated representative, who have purchasedbid document, are invited to attend a pre-bid meeting which will takeplace at Projects & Development India Limited , PDIL Bhawan, A-14,Sector-1,N oida-201301 (India).

18.2 The purpose of the meeting will be to clarify issues and to answerquestions on any matter that may be raised at that stage.

18.3 The bidder is requested, as far as possible, to submit any questions bycourier or by fax to reach PDIL’s office not later than one week beforethe meeting. It may not be practicable at the meeting to answerquestions received late, but questions and responses will betransmitted in accordance with the following sub-clause.

18.4 The text of the questions raised and the responses given, togetherwith any responses prepared after the meeting, will be transmittedwithout delay (without identifying the sources of the question) to allpurchasers of the bidding documents. Any modification of the biddingdocuments listed in Tender Document that may become necessary asa result of the pre-bid meeting shall be made by the Purchaserexclusively through the issue of an Addendum pursuant to Tenderdocument Clause-8 and not through the minutes of the pre-bidmeeting.

18.5 Non-attendance of the pre-bid meeting will not be a cause fordisqualification of a bidder.

19 Format AndSigning of Bid

19.1 The bidder shall prepare one original of the document comprising thebid as per clause 10.0 of ITB marked “original”. In addition, the biddershall submit four copies of the bid clearly marked “copies”. In theevent of any discrepancy between the original and the copies, theoriginal will govern.

19.2 The original and all copies of the bid shall be typed or written inindelible ink (in the case of copies, photocopies are also acceptable)and shall be signed by the person or persons duly authorised to signon behalf of the bidder. The name and position held by each personsigning, must be typed or printed below the signature. All pages of thebid, except any catalogues/ literatures shall be signed and sealed bythe person or persons signing the bid.

19.3 The bid shall contain no alterations, omissions or additions, unlesssuch corrections are initialed by the person or persons signing the bid.

20 Zero Deviation 20.1 Bidders to note that this is a zero deviation tender. GAIL/PDIL willappreciate submission of offer based on the terms and conditions in theenclosed General Conditions of Contract (GCC-Goods), Instructions toBidders (ITB), Scope of supply, technical specifications etc. to avoidwastage of time and money in seeking clarifications on technical/commercial aspects of the offer. Bidder may note that no technical andcommercial clarifications will be sought for after the receipt of the bids.Bids with any deviation to the bid conditions shall be liable for rejection.

21 E-Payment 21.1 GAIL (India) Limited has initiated payments to Indian suppliers andcontractors electronically and to facilitate the payments electronically,



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the bidder should have an account with HDFC Bank or ICICI Bank orState Bank of India so that the payment through e-banking be made tothe bidder, in case order is placed on him. Further, the bidder shouldgive their account number and other details in any one of the abovebanks to facilitate payment through e-banking.

22 Agent/consultant/Representative/Retainer/Associate

22.1 GAIL would prefer to deal directly with the manufacturers/ principalsabroad but in case they decide to have their Agent/Consultant/Representative/Retainer/Associate in India and pay commission fortheir services against a particular tender it should be bare minimumand the principal would have to certify that such a commission iscommensurate with the services rendered to them by such an Agent/Consultant/ Representative/ Retainer/ Associate in India. The principalwill also have to broadly list out services to be rendered by theAgent/Consultant/ Representative/ Retainer/ Associate in India.

22.2 In the event bidder is having an Agent/ Consultant/ Representative/Retainer/ Associate/ servicing facilities in India (who is not anemployee of the bidder) the bidder should indicate in their offer thename of such an Agent/ Consultant/ Representative /Retainer/Associate, they have for services in India. The bidder must alsoindicate clearly the commission payable to the Agent/Consultant/Representative/ Retainer/Associate in rupees in terms of Agreement(enclosing copy of the same). The bidder, in his bid will indicate thenature and extent of service to be provided by such anAgent/Consultant/ Representative/Retainer/Associate on behalf of thebidder and also remuneration therefore provided in the price, as aseparate item, quoted by the bidder to GAIL. Suchremuneration/commission will be paid by GAIL in non-convertibleIndian currency in India. Should it be established at any subsequentpoint of time that the above statement of the bidder is not correct orthat any other amount of remuneration/commission either in India orabroad is being paid to any one (who is not an employee of thebidder), the bidder would be liable to be debarred from participating inthe future tenders of GAIL. Failure to give such information will lead torejection of the offer.

The following particulars will also be furnished by the bidder:

(i) The precise relationship between the foreignmanufacturer/principal and their Agent/ Consultant/Representative/Retainer/Associate in India.

(ii) The mutual interest which the manufacturer /principal and theAgent/ Consultant/ Representative/ Retainer/Associate in Indiahave in the business of each other.

(iii) Any payment which the Agent/ Consultant/ Representative/Retainer/ Associate receives in India or abroad from themanufacturer/principal whether as a commission for thecontract or as a general fee.

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

(v) Permanent income tax account number of foreign supplier.



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

Note : Tenders which do not comply with the above stipulations areliable to be ignored.

22.3 Overseas bidder should send their bids directly and not throughAgent/ Consultant /Representative / Retainer /Associate will not berecognized. Agent/ Consultant/ Representative/Retainer/Associate ofthe overseas manufacturers/suppliers are, however, permitted topurchase biding documents and attend bid opening provided such asAgent/ Consultant/ Representative/Retainer/Associate has a power ofattorney/letter of authority setting out very clearly his role, which willbe limited to such areas of activity as purchase of bidding documents,attending of bid opening and claiming of payment for their services,provided further that such a power of attorney/letter of authority issubmitted to GAIL in advanced for scrutiny and acceptance orotherwise.

D. SUBMISSION OF BIDS

23 Sealing AndMarking ofBids

23.1 Bid shall be submitted in the following manner in separate sealedenvelopes duly superscribed 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 separate envelopesuper scribing “Part I - Techno-Commercial Un-Priced Bid for ---------Procurement” and Tender No. ………….. and due date ………...The 1st inner envelope should contain 1( one ) original plus 4 ( four )copies of techno-commercial bid .

23.3 Price Bid : (Part II) Original Price Bid and 1 (One) copies shall besealed in separate envelopes super scribing “Part II - Price Bid for ------- Procurement” and Tender No. ………….. and due date………...“Not to Open along with Techno-Commercial Unpriced Bid”.

23.4 Bid Security : (Part-III) Original and copy shall be sealed in separateenvelope clearly super scribing “Part II - Bid Security for ------Procurement” and Tender No. ………….. and due date ………... .These envelopes shall be further sealed as detailed hereunder.

23.5 All three envelopes containing Techno-Commercial un-priced Bids,Price Bids and Bid security shall further be sealed in one outerenvelope super scribing “Bid for ------------Procurement” and TenderNo. ………….. and due date ………..., Bidding Document Numberand shall be addressed to Tender issuing authority. The bidder maypaste the cut-out slips on the outer envelope of each part as enclosedin this tender document.



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23.6 Bids must be submitted at the following Address :Materials Manager

Projects and Development India ltd.A-14 , Sector-1 , NoidaDistt. GautamBudh Nagar ( 201301 )

23.7 Each envelop shall indicate name and address of the bidder to enablethe bid to be returned unopened, if required.

23.8 If the outer envelope is not sealed and marked as above, GAIL/PDILwill assume no responsibility for the misplacement or prematureopening of the bid. Also Bidder shall ensure that the envelopes usedare strong enough to with stand the weight and enroute handling byPostal department/ Courier Services.

24 Deadline forSubmission ofBid

24.1 Bids must be received by the Purchaser at the address specified inClause 23.6 above not later than the date and time specified in theIFB.

24.2 GAIL/PDIL may, at its discretion, on giving reasonable notice by fax orany written communication to all prospective bidders who have beenissued the bid documents, extend the deadline for the submission ofbids in which case all rights and obligations of GAIL/PDIL and thebidders, previously subject to the bid due date, shall thereafter besubject to the deadline as extended.

25 Late Bids 25.1 Any bid received by GAIL/PDIL after the deadline for submission of bidprescribed under IFB shall be rejected and returned unopened to thebidder.

26 ModificationAndWithdrawal ofBids

26.1 The bidder may modify or withdraw his bid after the bid’s submission,but before the due date of submission provided that the written noticeof the modification, including substitution or withdrawal of the bid isreceived by GAIL/PDIL prior to the deadline prescribed for submissionof bids.

26.2 The bidder’s modification or withdrawal notice shall be prepared,sealed, marked and delivered in accordance with the provisions ofITB Clause-23, with the outer envelopes additionally marked“modification” or “withdrawal” as appropriate. A withdrawal notice mayalso be sent by fax/post, but followed by a signed confirmation copypost marked not later than the deadline for submission of bids.

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

26.3 No bid shall be allowed to be withdrawn in the interval between thedeadline for submission of bids and the expiration of the period of bidvalidity specified by the bidder on the Bid Form. Withdrawal of a bidduring this interval shall result in the bidder’s forfeiture of his bidsecurity.



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E. OPENING AND EVALUATION OF BIDS

27 Bid Opening 27.1 UNPRICED TECHNO-COMMERCIAL BID OPENING:

27.1.1 The Purchaser will open bids (Part-I & III) including withdrawals andmodifications made pursuant to Clause 26.0 of ITB, in the presence ofbidders’ designated representatives who choose to attend, at date,time as stipulated in IFB. The bidder’s representatives who arepresent shall sign bid-opening status evidencing their attendance andsubmit authorisation letter.

27.1.2 Envelopes marked “withdrawal / Regret letter ” shall be opened firstand the name of the bidder shall be read out. Bids for which anacceptable notice of withdrawal has been submitted pursuant toClause26.0 of ITB shall not be opened. Subsequently, all envelopesmarked “Modifications” shall be opened and submissions therein readout in appropriate details. Thereafter all other bids received by duedate and time will be opened .

27.1.3 The bidder’s names, bid modifications and withdrawals, the presence(or absence) and amount of bid security and any other such details asthe Purchaser may consider appropriate will be announced by thePurchaser.

28 Process to beConfidential

28.1 Information relating to the examination, clarifications, evaluation andcomparison of bids and recommendations for the order, shall not bedisclosed to bidders or any other person officially concerned with suchprocess. Any effort by a bidder to influence the Purchaser in anymanner in respect of bid evaluation or award will result in the rejectionof that bid.

29 Contacting thePurchaser

29.1 From the time of the bid opening to the time of the release of order, ifany bidder wishes to contact GAIL/PDIL for any matter relating to thebid it should do so in writing.

29.2 Any effort by a bidder to influence GAIL/PDIL in any manner inrespect of bid evaluation or award will result in the rejection of that bid.

30 PreliminaryExamination ofBids

30.1 Techno-Commercial Bid Evaluation

30.1.1 GAIL/PDIL will examine the bids to determine whether they arecomplete, whether any computational errors have been made,whether required securities have been furnished, whether thedocuments have been properly signed and whether the bids aregenerally in order.

30.1.2 Prior to the detailed evaluation, GAIL/PDIL will determine whethereach bid is of acceptable quality, is generally complete and isresponsive to the Bidding Documents. For purposes of thisdetermination, a responsive bid is one which conforms to all theterms, conditions and specification of the bidding document, withoutdeviations, objections, conditionality or reservations.

30.1.3 No deviation, whatsoever, is permitted in the Bidding Documents andthe price bids of those bidders whose technical and commercial bidscontain any exception to the conditions and stipulations of the BiddingDocuments shall not be opened and returned un-opened to suchbidder(s).



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30.1.4 GAIL/PDIL determination of a bid’s responsiveness is to be based onthe contents of the bid itself without recourse to extrinsic evidence. If abid is non-responsive, it will be rejected by GAIL/PDIL and may notsubsequently be made responsive by the bidder by correction of thenonconformity.

30.1.5 GAIL/PDIL will carry out a detailed evaluation of the bids previouslydetermined to be responsive in order to determine whether thetechnical aspects are in accordance with the requirements set forth inthe Bidding Documents. In order to reach such a determination,GAIL/PDIL will examine and compare the technical aspects of the bidson the basis of the information supplied by the bidders, taking intoaccount he following factors :

(a) Overall completeness and compliance with the Technical Specifications; quality function and operation of any process concept included in the bid. The bid that does not meet minimum acceptable standard of completeness, consistency and detail will be rejected as non-responsive.

(b) Any other relevant factor, if any that GAIL/PDIL deems necessary or prudent to be taken into consideration.

30.2 Requisite forms contain all necessary information including thoserequired for meeting qualifying criteria stipulated in the BiddingDocument.

31 Price-BidOpening

31.1 GAIL/PDIL shall inform the time, date and venue for price bid openingto all such bidders who qualify pursuant to techno-commercial bidevaluation. Bidders may be required to attend price bid opening at ashort notice of 24 hours.

31.2 GAIL/PDIL will open price bids of all bidders notified to attend pricebid opening, in the presence of authorized bidders’ representatives.The bidders’ representatives, who are present shall sign bid-openingregister evidencing their attendance and submit authorisation letter.

31.3 The bidders’ names, bid prices, and such other details as GAIL/PDIL,at its discretion, may consider appropriate will be announced at theopening.

32 ArithmeticCorrections

32.1 The bids will be checked for any arithmetical errors as follows :

32.1.1 In case of any discrepancy between prices in words and prices infigures, the prices in words shall be valid and binding. In case of anyerror in total indicated by the Bidder, the unit price alone shall beconsidered valid and binding on the Bidder.

32.1.2 If the bidder does not accept the correction of errors, its bid will berejected and the bid security will be forfeited.

33 Conversion ToSingleCurrency

33.1 To facilitate evaluation and comparison, GAIL/PDIL will convert all bidprices expressed in the amounts in various currencies in which bidprice is payable, to Indian Rupees at the Bill selling exchange ratedeclared by the State Bank of India on the working day prior to pricebid opening .



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34 Evaluation AndComparison ofBids

34.1 GAIL/PDIL will evaluate and compare the bids previously determinedto be substantially responsive, pursuant to ITB Clause – 30.

34.2 Bid Evaluation and Comparison Criteria :

The evaluation of all the responsive bid for supplies to be arrived at thelowest evaluated offer

34.2.1 Where Domestic as well as foreign Bids are under comparison :

The evaluated price of domestic bidders shall include the following:i) Ex-works price quoted by the bidder (including packing,

forwarding, third party inspection charges except items whereGAIL/PDIL is the inspection agency ,taxes and duties includingcustoms duties, if any, on components and raw materials butexcluding Inland Transportation to PURCHASER’S site)

ii) Excise duty on the finished goods.iii) Sales Tax on the finished goods( With/Without Concessional

sales tax Form ‘C’ for CST and With/Without concessional formfor LST).

iv) Domestic price preference, if any, in accordance with ITB Clause-35.

B) Foreign Bidders :The evaluated price of foreign bidders shall include the following:i) C & F price quoted by the bidder including Third party

inspection charges except items where GAIL/PDIL is theinspection agency

ii) Marine insurance @1% of FOB priceiii) Prevailing rate of Customs duty* on (CIF value + Landing

charges)

* merit rate of Customs duty as applicable.

34.2.2 WHERE ONLY FOREIGN OFFER EXIST :The comparison shall be done on the basis of C & F basis.

34.2.3 WHERE ONLY INDIGENOUS OFFER EXIST : F.O.T site basis inclusive of all duties and taxes and freight up to site,

Pata.

Bids not conforming to Bid Evaluation criteria and technical specifications /requirements shall be rejected.

35 DomesticPreference

35.1 The supplies of materials and equipment by Domestic bidders areeligible, as per Government directives to following preference:

EXTENT OF DOMESTICVALUE ADDED

EXTENT OF PRICEPREFERENCE

Less than 30% NIL

30% and more Domestic preference shallbe limited to Off-setting ofCentral Sales Tax to theextent of 4% or actuals



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whichever is lower plusOctroi at actuals.

35.2 The domestic value addition shall be calculated with the followingformula:

% Value Addition =

{Ex-works price(excluding Customs Duty, Excise duty ,Sales Tax) _-CIF value of imports} X 100Ex-works price (excluding Customs duty, Excise duty, Sales Tax ).

In above formula the Customs duty shall be considered as applicableon imported raw materials/components and Excise duty & Sales Taxshall be considered on finished goods.

35.3 Once quoted the extent of Domestic Value addition shall remain unaltered. Bidder shall submit Chartered Accountant certificatein original, confirming that Domestic value addition is more than orequal to 30% as above for availing Domestic preference.

36 PurchasePreference

36.1 Purchase preference to Central government public sector Undertaking shall be allowed as per Government instructions in vogue

F. AWARD OF CONTRACT

37 PostQualification

37.1 In the absence of prequalification, GAIL/PDIL will determine to itssatisfaction whether the bidder selected as having submitted thelowest evaluated, responsive bid is qualified to satisfactorily performthe contract.

37.2 The determination will take into account the bidder’s financial,technical and production capabilities. It will be based upon anexamination of the documentary evidence of the bidder’s qualificationssubmitted by the Bidder, pursuant to ITB Clause-10, as well as suchother information as GAIL/PDIL deems necessary and appropriate.

37.3 An affirmative determination will be a prerequisite for award of thecontract to the bidder. A negative determination will result in rejectionof the bidder’s bid.

38 Award Criteria 38.1 Subject to ITB Clause 30, GAIL/PDIL will place the order to thesuccessful Bidder whose bid has been determined to be substantiallyresponsive and has been determined to be the lowest evaluated bidfor each item, provided further that the Bidder is determined to bequalified to perform the contract satisfactorily.

39 PURCHASER’sRight to VaryQuantities atTime of Award

39.1 GAIL/PDIL reserves the right at the time of award of ORDER toincrease or decrease by upto 15 % the quantity of GOODS specifiedin the Material Requisition, without any change in unit price or otherterms and conditions. Variation beyond this limit will be subject tomutual agreement between GAIL/PDIL and the Seller.

40 PURCHASER’sRight ToAccept Any Bid

40.1 GAIL/PDIL reserves the right to accept or reject any bid, and to annulthe bidding process and reject all bids, at any time prior to award ofcontract, without thereby incurring any liability to the affected bidder or



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And To rejectAny or All Bids

bidders or any obligations to inform the affected bidder or bidders ofthe ground for the GAIL/PDIL ’S ACTION.

41 Notification ofAward / Fax ofIntent

41.1 Prior to the expiration of period of bid validity GAIL/PDIL will notify thesuccessful bidder in writing by fax or e-mail to be confirmed in writing,that his bid has been accepted. The notification of award / Fax ofIntent will constitute the formation of the Contract.

41.2 Delivery shall be counted from the date of notification of award / Faxof Intent.

41.3 Upon the successful bidder’s furnishing of contract performance bankguarantee, pursuant to ITB Clause-43, GAIL/PDIL will promptly notifyeach unsuccessful bidder and will discharge his bid security, pursuantto ITB Clause-17.

42 Acceptance ofPurchaseOrder

42.1 GAIL/PDIL will issue the Purchase Order to the successful bidder,who, within 15 days of receipt of the same, shall sign all pages andreturn the acceptance copy to GAIL/PDIL .

43 PerformanceGuarantee

43.1 Within 15 days of the receipt of the notification of award / Fax ofIntent from GAIL/PDIL , the successful bidder shall furnish theperformance guarantee in accordance with Clause 12 of GeneralConditions of Contract (GCC) in the form provided in the biddingdocuments. The bank guarantee/Letter of Credit towardsperformance guarantee shall be in the currency of the Contract.

43.2 The performance guarantee shall be for an amount equal to 10% ofthe value of the contract towards faithful performance of thecontractual obligations and performance of equipment. This BankGuarantee/Letter of Credit shall be from any Indian scheduled bank ora branch of an International bank situated in India and registered withReserve bank of India as scheduled foreign bank. However, in caseof bank guarantees/ Letter of Credits from banks other than theNationalised Indian banks, the bank must be a commercial bankhaving net worth in excess of Rs 100 crores and a declaration to thiseffect should be made by such commercial bank either in the BankGuarantee itself or separately on its letterhead. This bankguarantee/Letter of Credit shall be valid for a period as stated inClause-12 of General Conditions of Contract (GCC).

43.3 Failure of the successful bidder to comply with the requirements ofthis clause shall constitute sufficient grounds for the annulment of theaward and forfeiture of the bid security.

44 Income TaxLiability

44.1 The bidder will have to bear all income tax liability, both Corporate aswell as for his personnel.

45 Corrupt orFraudulentPractices

45.1 GAIL/PDIL requires that Bidders/Suppliers observe the higheststandard of ethics during the procurement and execution of the order.In pursuance of this policy, GAIL/PDIL :

a) defines, for the purposes of this provision, the terms set forth below as follows :i) “corrupt practice” means the offering, giving, receiving orsoliciting of any thing of value to influence the action of a publicofficial in the procurement process or in contract execution; and



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ii) “fraudulent practice” means a misrepresentation of facts inorder to influence a procurement process or the execution of acontract to the detriment of GAIL/PDIL , and includes collusivepractice among Bidders (prior to or after bid submission) designed toestablish bid prices at artificial non-competitive levels and to deprivethe Purchaser of the benefits of free and open competition;

b) will reject a proposal for award if it determines that the Bidderrecommended for award has engaged in corrupt or fraudulentpractices in competing for the contract in question;

will declare a firm ineligible, either indefinitely or for a stated period oftime, if at any time GAIL/PDIL determines that the firm has engagedin corrupt or fraudulent practices in competing for or in executing acontract.



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SECTION III

FORMS AND FORMATS



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FORMS AND FORMATS

DO NOT OPEN – THIS IS A QUOTATION

TENDER NO. : PNMM/4288/E/ 6401 /ICB .

ITEM : FITTINGS , FLANGES , SPECTACLE BLINDS AND OTHER ITEMS

DUE DATE :

FROM: TO:M/S Materials Manager

Projects and Development India ltd.A-14 , Sector-1 , NoidaDistt. – GautamBudh Nagar ( 201301 )

(TO BE PASTED ON THE OUTER ENVELOPE CONTAINING THREE ENVELOPES OFPART-I, PART-II AND PART-III OF BIDS)


(UN PRICE BID)



DUE DATE :



(TO BE PASTED ON THE ENVELOPE CONTAINING TECHNO-COMMERCIAL OFFER I.E.UN-PRICED BID PART-I)



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(PRICE BID)



DUE DATE :FROM: TO:M/S Materials Manager


(TO BE PASTED ON THE OUTER ENVELOPE CONTAINING PRICE, PART-II )


(SECURITY DEPOSIT /EMD)

TENDER NO. : PNMM/4288/E / 6401 /ICB .




(TO BE PASTED ON THE ENVELOPE CONTAINING SECURITY DEPOSIT /EMD, PART-III)



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F-1BIDDER’S GENERAL INFORMATION

ToMaterials ManagerProjects and Development India ltd.A-14 , Sector-1 , NoidaDistt. GautamBudh Nagar ( 201301 )

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 ___________________________________________ ( Please Furnish two Email address )

1-7 Telefax Number ____________________________________________

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

1-8 ISO Certification, if any

{If yes, please furnish details}

1-9 Indicate Port of Shipment against this tender : ( Foreign bidder’s )

1-10 Indicate shipping weight (net and gross) & volume of the consignment separately for eachSkid of the quote/SOR ( Foreign Bidder’s ).

Qty. (Nos.) Gross Volume (CuM)

Gross Weight(KG)

Item No. Description

1 1

(SIGNATURE OF BIDDER WITH SEAL)



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F-2

BID FORMTo,

Materials ManagerProjects and Development India ltd.A-14 , Sector-1 , NoidaDistt. GautamBudh Nagar ( 201301 )

Dear Sir,

After examining/reviewing the Bidding Documents for --------------------including technicalspecifications, drawings, General and Special Purchase Conditions and schedule of rates etc.the receipt of which is hereby duly acknowledged, we, the undersigned, pleased to offer toexecute the whole of the Job of …………… , the said Bid Documents, including Addenda Nos.____________.

We confirm that this bid is valid for a period of Six (6) months from the date of opening ofTechno-Commercial Bid, and it shall remain binding upon us and may be accepted by anytime before the expiration of that period.

If our bid is accepted, we will provide the performance security equal to 10% (ten per cent) ofthe Contract Price, for the due performance with in fifteen days of such award.

Until a final Agreement is prepared and executed, the bid together with your writtenacceptance thereof in your notification of award shall constitute a binding Agreement betweenus.

We understand that Bid Document is not exhaustive and any action and activity not mentionedin Bid Documents but may be inferred to be included to meet the intend of the Bid Documentsshall be deemed to be mentioned in Bid Documents unless otherwise specifically excludedand we confirm to perform for fulfilment of Agreement and completeness of the Work in allrespects within the time frame and agreed price.

We understand that you are not bound to accept the lowest priced or any bid that you mayreceive.

SEAL AND SIGNATURE

DATE:

Duly authorized to sign bid for and on behalf of ____________________________________

(SIGNATURE OF WITNESS)

WITNESS NAME:

ADDRESS:



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F-3CHECK LIST FOR BIDDERS

(Bidders must fill-up this Section in all respects and submit with un-priced bid)Tender No:Item Description :

SLNO.

DESCRIPTION BIDDER’ SCONFIRMATION

(CONFIRMED/ NOTCONFIRMED)

Page No. ofBid

1. EMD Submitted2. No deviations taken to the terms and conditions

of tender document including Rejection Criteria .3. Power of attorney of the signatory to the signing

Bidding Document .4. Bidder has submitted all documents in support of

BEC (Bid Evaluation Criteria) of tender viz.(a) P.O details(b) Execution certificate etc.

5. Full set of Tender document along with itsAddendum/corrigendum, has been signed on allpages (with company seal affixed) andsubmitted with un-priced bid .

6. All Forms & Annexures are submitted duly filled-in and signed .

7. Price schedule has been filled-up strictly as perFormat given in tender document at Section-VI

8. Price bid (Part-II) has been submitted separately9. Copy of price schedule with prices blanked out

has been submitted with un-priced bid10. [ADD ANY OTHER DOCUMENTRY /

COMPLIANCES REQUIREMENT OF TENDERDOCUMENT]

11. Bidder to indicate additional document pointwisewith nature of Document, its date, etc.

SIGNATURE ________________ NAME _____________________

DESIGNATION______________ DATE______________________ COMPANY’s SEAL ___________



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F-4

PROFORMA FOR BANK GUARANTEE FOR EARNEST MONEY DEPOSIT/ BID SECURITY(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 saidtender for _________________________________________________________________As an irrevocable Bank Guarantee against Earnest Money for the amount of ______________ isrequired to be submitted by the Tenderer as a condition precedent for participation in the saidtender which amount is liable to be forfeited on the happening of any contingencies mentioned inthe Tender Document.

We, the ____________________________________ Bankat_____________________________having our Head Office ________________________________________________________(Local Address) guarantee and undertake to pay immediately on demand without any recourseto the tenderers by GAIL (India) Ltd., the amount________________ ____________________without any 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 shouldbe 6 months after the date finally set out for closing of tender]. If any further extension of thisguarantee is required, the same shall be extended to such required period on receivinginstructions 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 per Power of Attorney No.________ Date:________________________



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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 Employerconfirming its net worth is more than Rs. 1,000,000,000/- (Rupees one hundredcrore) or equivalent along with a documentary evidence.



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F-4FORMAT FOR LETTER OF CREDIT FOR BID SECURITY

To,(Beneficiary)GAIL (India) LimitedNoida-201301

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

Validity of this Irrevocable : …………………………………………(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 a sum not exceeding……………………available by your demand letter (draft) on them atsight drawn for…………………..Rs./US$ accompanied by a certificate by GAIL (India) Ltd.,with the Tender No. duly incorporated therein, that one or more of the following conditionshas/have occurred, specifying the occurred condition(s) :

(i) The bidder withdraws its Bid during the period of Bid validity or any extensionthereof duly agreed by the Bidder.

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

(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 30days 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 TenderNo………………for ………………..(item)

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

4. This Credit is issued subject to the Uniform Customs and Practices for DocumentaryCredits (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………………………………………………………(Applicant)

FOR………………………..

Authorised Signature (Original Bank)Counter Signature



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F-5LETTER OF AUTHORITY

PROFORMA FOR LETTER OF AUTHORITY FOR ATTENDING AND SUBSEQUENTNEGOTIATIONS/CONFERENCES

No. Date:


Dear Sir,

We _____________________________________ hereby authorize followingrepresentative(s) to attend un-priced bid opening and price bid opening and for any othercorrespondence and communication against above Bidding Document:

1) Name & Designation _______________________ Signature _________________

2) Name & Designation _______________________ Signature _________________

We confirm that we shall be bound by all commitments made by aforementioned authorisedrepresentatives.

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 be signedby 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-priced andprice bid opening.



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F-6NO DEVIATION CONFIRMATION

ToMaterials ManagerProjects and Development India ltd.A-14 , Sector-1 , NoidaDistt. GautamBudh Nagar ( 201301 )

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 be rejected.

(SEAL AND SIGNATURE OF BIDDER)



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F-7CERTIFICATE


Dear Sir,

If we become a successful bidder and pursuant to the provisions of the Bidding Documentsaward is given to us for supply of -----------------------------------------------------------------------------the following certificate shall be automatically enforceable:

“We agree and acknowledge that the Employer is entering into the Agreement solely on its

own behalf and not on behalf of any other person or entity. In particular, it is expressly

understood and agreed that the Government of India is not a party to the Agreement and has

no liabilities, obligations or rights there under. It is expressly understood and agreed that the

Employer is authorised to enter into Agreement, solely on its own behalf under the applicable

laws of India. We expressly agree, acknowledge and understand that the Employer is not an

agent, representative or delegate of the Government of India. It is further understood and

agreed that the Government of India is not and shall not be liable for any acts, omissions,

commissions, breaches or other wrongs arising out of the Agreement. Accordingly, we hereby

expressly waive, release and forego any and all actions or claims, including cross claims, VIP

claims or counter claims against the Government of India arising out of the Agreement and

covenants not to sue to Government of India as to any manner, claim, cause of action or

things whatsoever arising of or under the Agreement.”

Seal and Signature of Bidder



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F-10

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

TO:

M/S. GAIL(India) LTD.

Dear Sirs,

M/s __________________________________________________________________ havebeenawarded the work of ___________________________________________________________for GAIL ( INDIA) LTD. , 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 of payment ofPerformance Guarantee includes guarantee executed by Nationalised Bank, undertaking fullresponsibility to indemnify GAIL ( INDIA) LTD. , in case of default.

The said_______________________________________________ has approached us and attheir request and in consideration of the premises we having our office at______________________________ have agreed to give such guarantee as hereinaftermentioned.

1. We ___________________________________________________________________hereby undertake and agree with you that if default shall be made byM/s__________________________________ in performing any of the terms andconditions of the tender or in payment of any money payable to GAIL ( INDIA) LTD. weshall on demand pay without any recourse to the contractor to you in such manner asyou may direct the said amount of Rupees _____________________________ only orsuch portion thereof not exceeding the said sum as you may from time to time require.

2. You will have the full liberty without reference to us and without affecting this guarantee,postpone for any time or from time to time the exercise of any of the powers and rightsconferred on you under the contract with the said_____________________________________ and to enforce or to forbear fromendorsing any powers or rights or by reason of time being given to the said__________________________ which under law relating to the sureties would but forprovision have the effect of releasing us.

3. Your right to recover the said sum of Rs.____________________________________(Rupees_______________________________________) from us in manner aforesaidwill not be affected or suspended by reason of the fact that any dispute or disputes havebeen raised by the said M/s.___________________________ and/or that any dispute ordisputes are pending before any officer, tribunal or court.

4. The guarantee herein contained shall not be determined or affected by the liquidation orwinding up dissolution or changes of constitution or insolvency of the said but shall in allrespects and for all purposes be binding and operative until payment of all money due toyou in respect of such liabilities is paid.

5. This guarantee shall be irrevocable and shall remain valid upto______________ If anyfurther extension of this guarantee is required, the same shall be extended to suchrequired period on receiving instruction from



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M/s.___________________________________________________ on whose behalfthis guarantee is issued.

6. The Bank Guarantee’s payment of an amount is payable on demand and in any casewithin 48 hours of the presentation of the letter of invocation of Bank Guarantee.Should the banker fail to release payment on demand, a penal interest of 18% perannum shall become payable immediately and any dispute arsing out of or in relationto the said Bank Guarantee shall be subject to the jurisdiction of Delhi Courts.

7. We have power to issue this guarantee in your favour under Memorandum and Articles ofAssociation and the undersigned has full power to do under the Power of Attorney dated___________ granted to him by the Bank.

Yours faithfully,

___________________________Bank By its Constituted Attorney

Signature of a person duly authorised to sign on behalf of the Bank.



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INSTRUCTIONS FOR FURNISHING PERFORMANCE GUARANTEE

1. The Bank Guarantee by successful bidder(s) will be given on non-judicialstamp paper as per stamp duty applicable. The non-judicial stamp papershould be in name of the issuing bank. In case of foreign bank, the said bankguarantee to be issued by its correspondent bank in India on requisite non-judicial stamp paper and place 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 thatsaid bank guarantee and all future communication relating to the BankGuarantee shall be forwarded to Employer

4. If a bank guarantee is issued by a commercial bank, then a letter to Purchaserand copy to Consultant confirming its net worth is more than Rs.1,000,000,000/- (Rupees one hundred crore). or its equivalent in foreigncurrency along with a documentary evidence.



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F–11 (A)AGREED TERMS AND CONDITIONS

(FOR FOREIGN BIDDERS ONLY)

(BIDDERS MUST CONFIRM/COMMENT POINT BY POINT)

SL.NO.

DESCRIPTION BIDDER SCONFIRMATION/

ACCEPTANCE/COMMENTS1 Confirmation that the offer contains firm and fixed unit and

total prices as per price Schedule enclosed ( i.e FOB , C & Fand CIF basis ).

1.1 Confirm that Price are FOB port of shipment basis includingPacking & Forwarding Charges, inland transportation ,insurance , taxes & duties , FOB charges / Documentationcharges , etc. upto port of shipment .

2 Confirmation that the quoted prices are valid for acceptanceupto 06 months from the date of opening of Techno-commercial bids .

3 Bidder s name and address with FAX/PHONE No.

4 Country of Origin of Goods offered.5 Confirm acceptance of FOB delivery period of 4months from

the date of Fax of Intent.6 Confirmation that the quoted prices are in the currency of

country of origin of goods or in US Dollars (please mention thesame).

7 Confirmation that complete technical literatures/catalogues,Data Sheet, Technical Questionnaire duly filled in & customerreferences list have been submitted along with offer.

8 Shipping net weight and gross weight.9 Confirmation of acceptance of terms and conditions of the

tender document in totality .10 Acceptance of Price reduction schedule for delay in delivery

beyond contractually agreed schedule as per Clause no. 26GCC-Goods of tender documents.

11 Confirmation that the material shall be guaranteed againstdefective materials/workmanship etc. for a period of 24months from last shipment or 12 months from the date ofcommissioning, whichever is earlier

12 Agreement to furnish Contract performance Bank Guaranteefor 10% of total Order Value valid till 3 months beyond theexpiry of contractual guarantee/warranty period.

13 All Bank charges and Stamp Duties payable outside India inconnection with payments to be made under the Contractshall be borne by the Seller.

14 All taxes, duties and levies of any kind payable upto the stageof putting the material in FOB position shall be borne by theseller.

15 Owner reserves the right to make any changes in the termsand conditions of the Bid Document and to reject any or allbids including those received late or incomplete.

16 Direct offer will only be considered. In case you have Agent/Representative/Liaison office in India, please indicate name ofyour Indian Agent with complete address, Tel. No. etc., theirrole, percentage (%) of Agency commission of FOB pricesincluded in quoted prices to be paid to them in non-convertible Indian Rupees upon completion of supplies.



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SL.NO.

DESCRIPTION BIDDER SCONFIRMATION/

ACCEPTANCE/COMMENTS17 Confirm acceptance to

(a) Part order(b) Quoted prices shall be fixed and valid for repeat order

purpose upto six months from the date of award ofcontract .

18 Confirmation acceptance to any of the following paymentterms :

a) 100% payment thru. Irrevocable and unconfirmedletter of credit . In case of confirmed letter of credit ,confirmation charges shall be borne by the seller .

b) 100% direct payment ( DP ) at sight .

19 (a) Confirm that Third party inspection charges have beenincluded in the priced bid.

(b) In the event of inspection by PDIL or owner confirm noextra charges payable to you.

(c) Confirm that charges for any IBR approved Third Partyinspection agency for IBR items ( If covered in MR ) havebeen included in the price bid.

(d) Indicate name of third party inspection agency:- for IBR items- for non IBR items .

-

20 Export permit / licence if required shall be vendor sresponsibility and any expenditure towards same will be borneby vendor. Confirm.

21 Please indicate Seaport/Airport of export for shipment.

22 Please indicate the name and address of your Bankers.

23 All correspondence must be in English Language only.

VENDOR CONFIRMS THAT IN CASE OF CONFLICTINGVERSION OF VARIOUS TERMS & CONDITIONS AT DIFFERENTPLACES PURCHASER CAN CHOOSE ANY VERSION.

PDIL s TENDER NO.: PNMM/4288/E/6401/ICB SIGNATURE SELLER S OFFER NO. NAME

DESIGNATIONDATE



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F–11 (B)AGREED TERMS AND CONDITIONS QUESTIONNAIRE

(FOR DOMESTIC BIDDERS ONLY)

This Annexure must be enclosed with offers duly completed and signed by vendors.

SR.NO

DESCRIPTION VENDOR S CONFIRMATIONACCEPTANCE/ COMMENTS

1 Confirm that quoted Prices are FOT site basisincluding Packing & Forwarding Charges, freight ,taxes and duties as per price schedule .

2 Confirm that Transportation charges are quoted inPrice schedule .

...% upto Site / Rs. .. upto site

3 Packing & Forwarding charges (either % or value),if extra

4 Sales Taxes : Extra as applicable on Finished Goodsonly . (Present rates)( Sales Tax on Raw Materials Components andDirectly despatched sub-vendored items areincluded in the quoted base price )

....% against Concessionalsales tax form .

% without Concessionalsales tax form .

5 Excise duty, if applicable confirm submission ofCENVAT invoice.

5.1 Indicate Present rate5.2 In case of concessional ED because of turnover etc.

confirm whether any increase at the time ofdespatch shall be borne by seller

5.3 If included confirm any variation will be borne byyou

5.4 If presently not applicable confirm the same will beborne by you if becomes applicable at a later date

6 Other taxes and Dutis if any , are included in the BidPrice and details thereof indicated separately .

7 Transit Insurance by GAIL8 Confirm Delivery quoted is as per the requirement

of Bid Document

9 Confirm acceptance of Price Reduction schedule asper clause no. 26 of GCC-Goods of tenderdocuments.

10 Confirmation acceptance to payment terms as perClause no. 2.1 of SCC of tender documents.

11 Confirm submission of B.G Towards: Contract cumPerformance B.G i. e. 10% of order value to besubmitted within 15 days from the date of FOI.

12 Confirm net weight and gross weight of theconsignment

13 Pl. confirm that prices are firm and fixed tillcompletion of order / contract except for statutoryvariation in Sales Tax and excise duties withincontractual delivery period only . Any other increasestatutory or otherwise shall not be allowed .

14 Confirm guarantee period of 12 months from dateof commissioning or 24 months from date of lastdespatch whichever is earlier

15 Confirmation of acceptance of terms and conditionsof the tender document in totality .



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SR.NO

DESCRIPTION VENDOR S CONFIRMATIONACCEPTANCE/ COMMENTS

16 Validity of offer upto 6 months from date of openingof Techno-commercial bids .

17 Confirmation that complete technicalliteratures/catalogues, Data Sheet, TechnicalQuestionnaire duly filled in & customer referenceslist have been submitted along with offer.

18 Confirm acceptance toa) Part orderb) Quoted prices shall be fixed and valid for

repeat order purpose upto six months fromthe date of award of contract .

19 a) Confirm third party inspection charges areincluded in the Price bid.

b) In the event of inspection by PDIL orowner confirm no extra charges payable toyou.

c) Confirm that charges for any IBR approvedthird party inspection agency for IBR items(if covered in MR) have been included in theprice bid.

d) Indicate name of third party inspectionagency:

- for IBR items- for non IBR items-

21 Extent of value addition ( Domestic value added tomanufacturing cost as ..% of Ex- factoryprice ) . Minimum 30 %

22 Place of Manufacture and Despatch23 a) Import Licence for bought out items if

required to be arranged by Bidder .

b) CIF value of Import content.

c) Import customs duty on bought out parts.

d) C ENVAT

24 VENDOR CONFIRMS THAT IN CASE OFCONFLICTING VERSION OF VARIOUS TERMS &CONDITIONS AT DIFFERENT PLACES PURCHASERCAN CHOOSE ANY VERSION.

PDIL s TENDER NO.: PNMM/4288/E/6401/ICB SIGNATURE SELLER S OFFER NO. NAME

DESIGNATIONDATE



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SECTION IV

GENERAL CONDITIONS OF CONTRACT

(GCC - GOODS )



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Section – III

General Conditions of Contract-GOODS

INDEX

Article Title

1. Definitions2. Seller to inform3 Application4. Country of origin5. Scope of Contract6. Standards7. Instructions, direction & correspondence8. Contract Obligations9. Modification in Contract10. Use of Contract Documents & Information11. Patent Rights, Liability & Compliance of Regulations12. Performance Guarantee13. Inspection, Testing & Expediting14. Time Schedule & Progress Reporting15. Delivery & Documents16. Transit Risk Insurance17. Transportation18. Incidental Services19. Spare Parts, Maintenance Tools, Lubricants20. Guarantee21. Terms of Payment22. Prices23. Subletting & assignment24. Time as Essence of Contract25. Delays in the Seller’s Performance26. Price Reduction Schedule for Delayed delivery27. Rejections, Removal of rejected equipment & replacement28. Termination of Contract29. Force Majeure30. Resolution of disputes/arbitration31. Governing Language32. Notices33. Taxes & Duties34. Books & Records35. Permits & Certificates36. General37. Import Licence38. Fall clause39. Publicity & Advertising40 Repeat Order41 Limitation of Liability42 Shipment and Advance Notices



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

1.0 BIDDER : Designates the individual or legal entitywhich has made a proposal, a tender or a bid withthe aim of concluding a Contract with thePURCHASER.

1.1 CONSULTANT [if engaged] shall mean M/s.Projects and Development India Ltd. having itsregistered office at A-14 , Sector-1 , Noida , Distt. –Gautam Budhnagar ( 202301 ) . The termconsultant includes successors, assigns of M/s.M/s. Projects and Development India Ltd.

1.2 CONTRACT shall mean Purchase Order/Contractand all attached exhibits and documents referred totherein and all terms and conditions thereof togetherwith any subsequent modifications thereto.

1.3 CONTRACT PRICE shall mean the price payableto the Seller under the Contract for the full andproper performance of his contractual obligations.

1.4 COMPLETION DATE shall mean the date on whichthe goods are successfully commissioned by theSeller and handed over to the PURCHASER.

1.5 COMMERCIAL OPERATION shall mean thecondition of the operation in which the completeequipment covered under the Contract is officiallydeclared by the PURCHASER to be available forcontinuous operation at different loads upto andincluding rated capacity.

1.6 DELIVERY terms shall be interpreted as per INCOTERMS 2000 in case of Contract with a foreignBidder and as the date of LR/GR in the case of acontract with an Indian Bidder.

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 ProjectSITE shall mean the person designated from time totime by PURCHASER/CONSULTANT at SITE andshall include those who are expressly authorized byhim to act for and on his behalf for operation of this



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CONTRACT.

1.9 FINAL ACCEPTANCE shall mean thePURCHASER’s written acceptance of the Worksperformed under the Contract after successfulcompletion of performance and guarantee test.

1.10 GOODS shall mean articles, materials, equipment,design and drawings, data and other property to besupplied by Seller to complete the contract.

1.11 INSPECTOR shall mean any person or outsideAgency nominated by PURCHASER/CONSULTANT through CONSULTANT to inspectequipment, stagewise as well as final, beforedispatch, at SELLER’s works and on receipt at SITEas per terms of the CONTRACT.

1.12 INITIAL OPERATION shall mean the first integraloperation of the complete equipment covered underthe Contract with sub-systems and supportingequipment in service or available for service.

1.13 PURCHASER shall mean GAIL (INDIA) LIMITED(GAIL) having its registered office at 16, BHIKAIJICAMA PLACE, R.K.PURAM, NEW DELHI-110066(INDIA). The term PURCHASER includessuccessors, assigns of GAIL.

1.14 PERFORMANCE AND GUARANTEE TESTS shallmean all operational checks and tests required todetermine and demonstrate capacity, efficiency andoperating characteristics as specified in theContract documents.

PROJECT designates the aggregate of the Goodsand/or Services to be provided by one or moreContractors.

Quantities – Bills of quantities

Bills of quantities

Designate the quantity calculations to be taken intoaccount when these calculations are made fromdetailed or construction drawings, or from workactually performed, and presented according to ajointly agreed breakdown of the Goods and/orServices.

1.15 SELLER shall mean the person, firm or companywith whom PURCHASE ORDER/CONTRACT isplaced/entered into by PURCHASER for supply ofequipment, materials and services. The term Sellerincludes its successors and assigns.



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1.16 SERVICE shall mean erection, installation, testing,commissioning, provision of technical assistance,training and other such obligations of the Sellercovered under the Contract.

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

1.18 SPECIFICATIONS shall mean and includeschedules, details, description, statement oftechnical data, performance characteristics,standards (Indian as well as International) asapplicable and specified in the Contract.

1.19 SUB-CONTRACT shall mean order placed by theSeller, for any portion of the contracted work, afternecessary consent and approval of PURCHASER.

1.20 SUB-CONTRACTOR shall mean the person namedin the CONTRACT for any part of the work or anyperson to whom any part of the CONTRACT hasbeen sub-let by the SELLER with the consent inwriting of the CONSULTANT/PURCHASER and willinclude the legal representatives, successors, andpermitted assigns of such person.

1.21 START-UP shall mean the time period required tobring the equipments covered under the Contractfrom an inactive condition, when construction isessentially complete to the state of readiness fortrial operation. The start-up period shall includepreliminary inspection and check out of equipmentand supporting subsystems, initial operation of thecomplete equipments covered under the Contract toobtain necessary pre-trial operation data, performcalibration and corrective action, shutdowninspection and adjustment prior to the trial operationperiod.

1.22 TESTS shall mean such process or processes to becarried out by the Seller as are prescribed in theContract or considered necessary by PURCHASERor his representative in order to ascertain quality,workmanship, performance and efficiency ofequipment or part thereof.

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

2 Seller To Inform 2.1 The Seller shall be deemed to have carefullyexamined all contract documents to his entire



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satisfaction. Any lack of information shall not in anyway relieve the Seller of his responsibility to fulfillhis obligation under the Contract.

3 Application 3.1 These General Conditions of Contract (GCC-Goods) shall apply to the extent that they are notsuperseded by provisions of other parts of theContract.

4 Country of Origin a. For purposes of this Clause “origin” means theplace where the Goods were mined, grown orproduced, or from which the services are supplied.Goods are produced when, through manufacturing,processing or substantial and major assembling ofcomponents, a commercially recognized newproduct results that is substantially different in basiccharacteristics or in purpose or utility from itscomponents.

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

5.2 Completeness of the EQUIPMENT shall be theresponsibility of the SELLER. Any equipment,fittings and accessories which may not bespecifically mentioned in the specifications ordrawings, but which are usual or necessary for thesatisfactory functioning of the equipment(successful operation and functioning of theEQUIPMENT being SELLER’s responsibility) shallbe provided by SELLER without any extra cost.

5.3 The SELLER shall follow the best modern practicesin the manufacture of high grade EQUIPMENTnotwithstanding any omission in the specifications.The true intent and meaning of these documents isthat SELLER shall in all respects, design, engineer,manufacture and supply the equipment in athorough workmanlike manner and supply the samein prescribed time to the entire satisfaction ofPURCHASER.

5.4 The SELLER shall furnish twelve (12) copies inEnglish language of Technical documents, finaldrawings, preservation instructions, operation andmaintenance manuals, test certificates, spare partscatalogues for all equipments to the PURCHASER.

5.5 The documents once submitted by the SELLERshall be firm and final and not subject to subsequentchanges. The SELLER shall be responsible for anyloss to the PURCHASER/CONSULTANTconsequent to furnishing of incorrect data/drawings.



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5.6 All dimensions and weight should be in metricsystem.

5.7 All equipment to be supplied and work to be carriedout under the CONTRACT shall conform to andcomply with the provisions of relevantregulations/Acts(State Government or CentralGovernment) as may be applicable to the type ofequipment/work carried out and necessarycertificates shall be furnished.

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

5.9 Specifications, design and drawings issued to theSELLER alongwith RFQ and CONTRACT are notsold or given but loaned. These remain property ofPURCHASER/CONSULTANT or its assigns and aresubject to recall by PURCHASER/CONSULTANT.The SELLER and his employees shall not make useof the drawings, specifications and technicalinformation for any purpose at any time except formanufacture against the CONTRACT and shall notdisclose the same to any person, firm or corporatebody, without written permission ofPURCHASER/CONSULTANT. All such details shallbe kept confidential.

5.10 SELLER shall pack, protect, mark and arrange fordespatch of EQUIPMENT as per instructions givenin the CONTRACT.

6 Standards 6.1 The GOODS supplied under the CONTRACT shallconform to the standards mentioned in theTechnical Specifications, or such other standardswhich ensure equal or higher quality, and when noapplicable standard is mentioned, to theauthoritative standard appropriate to the GOODS’country of origin and such standards shall be thelatest issued by the concerned institution.

7 Instructions, Direction& Correspondence

7.1 The materials described in the CONTRACT are tobe supplied according to the standards, datasheets, tables, specifications and drawings attachedthereto and/or enclosed with the CONTRACT, itselfand according to all conditions, both general andspecific enclosed with the contract, unless any or allof them have been modified or cancelled in writingas 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



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direction of and to the satisfaction ofPURCHASER/CONSULTANT.

c. All communications includingtechnical/commercial clarifications and/orcomments shall be addressed to CONSULTANTin quintuplicate with a copy to PURCHASERand shall always bear reference to theCONTRACT.

d. Invoices for payment against CONTRACT shallbe addressed to PURCHASER.

e. The CONTRACT number shall be shown on allinvoices, communications, packing lists,containers and 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 furnishthe performance guarantee within the prescribedtime limit, the PURCHASER reserves the right tocancel the contract and apply all remedies availableto him under the terms and conditions of thiscontract.

8.2 Once a contract is confirmed and signed, the termsand conditions contained therein shall takeprecedence over the Seller’s bid and all previouscorrespondence.

9 Modification InContract

9.1 All modifications leading to changes in theCONTRACT with respect to technical and/orcommercial aspects including terms of delivery,shall be considered valid only when accepted inwriting by PURCHASER/CONSULTANT by issuingamendment to the CONTRACT. Issuance ofacceptance or otherwise in such cases shall not beany ground for extension of agreed delivery dateand also shall not affect the performance of contractin any manner except to the extent mutually agreedthrough a modification of contract.

9.2 PURCHASER/CONSULTANT shall not be bound byany printed conditions or provisions in theSELLER’s Bid Forms or acknowledgment ofCONTRACT, invoices, packing list and otherdocuments which purport to impose any conditionsat variance with or supplemental to CONTRACT.

10 Use of ContractDocuments &Information

10.1 The Seller shall not, without thePURCHASER’s/CONSULTANT’s prior writtenconsent, disclose the CONTRACT or any provisionthereof, or any specification, plan, drawing, pattern,sample or information furnished by or on behalf ofthe PURCHASER in connection therewith, to anyperson other than a person employed by theSELLER in the performance of the CONTRACT.Disclosure to any such employed person shall bemade in confidence and shall extend only so far as



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may be necessary for purpose of such performance.

10.2 The SELLER shall not, without the PURCHASER’sprior written consent, make use of any document orinformation enumerated in Article 10.1. except forpurpose 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 infringeclaims of any patent covering such material andSELLER agrees to be responsible for and to defendat his sole expense all suits and proceedingsagainst PURCHASER based on any such allegedpatent infringement and to pay all costs, expensesand damages which PURCHASER and/orCONSULTANT may have to pay or incur by reasonof any such suit or proceedings.

11.2 The SELLER shall indemnify the PURCHASERagainst all third party claims of infringement ofpatent, trade mark or industrial design rights arisingfrom use of the GOODS or any part thereof in thePURCHASER’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 otherperson/persons or bodies/companies etc. for anyacts of commissions or omission while executingthe 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 ofnotification of award of the CONTRACT, theSELLER shall furnish Performance Guarantee inthe form of Bank Guarantee/irrevocable Letter ofCredit to the PURCHASER, in the form provided inthe Bidding Documents, for an amount equivalent to10% of the total value of the CONTRACT.

12.2 The proceeds of Performance Guarantee shall beappropriated by the PURCHASER as compensationfor any loss resulting from the SELLER’s failure tocomplete his obligations under the CONTRACTwithout prejudice to any of the rights or remediesthe PURCHASER may be entitled to as per termsand conditions of CONTRACT. The proceeds of thisPerformance Guarantee shall also govern thesuccessful performance of Goods and Servicesduring the entire period of ContractualWarrantee/Guarantee.

12.3 The performance guarantee shall be denominatedin the currency of the CONTRACT.

12.4 The Performance Guarantee shall be valid for the



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duration of 90 days beyond the expiry ofWarrantee/Guarantee period. The Bank Guaranteewill be discharged by PURCHASER not later than 6months from the date of expiration of the Seller’sentire obligations, including any warranteeobligations, under the CONTRACT.

13 Inspection, Testing &Expediting

13.1 The PURCHASER or its representative shall havethe right to inspect and/or to test the GOODS toconfirm their conformity to the CONTRACTspecifications. The special conditions ofCONTRACT and/or the Technical Specificationsshall specify what inspections and tests thePURCHASER requires and where they are to beconducted. The PURCHASER shall notify theSELLER in writing the identity of anyrepresentative(s) retained for these purposes.

13.2 The inspections and tests may be conducted on thepremises of the SELLER or his sub-contractor(s), atpoint of DELIVERY and/or at the GOODS’ finaldestination, When conducted on the premises of theSELLER or his sub-contractor (s), all reasonablefacilities and assistance including access to thedrawings and production data shall be furnished tothe inspectors at no charge to the PURCHASER.

13.3 Should any inspected or tested GOODS fail toconform to the specifications, the PURCHASERmay reject them and the SELLER shall eitherreplace the rejected GOODS or make all alterationsnecessary 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 in the PURCHASER’s country shall in no waybe limited or waived by reason of the GOODShaving previously been inspected, tested andpassed by the PURCHASER, or their representativeprior to the GOODS shipment from the country oforigin.

13.5 The INSPECTOR shall follow the progress of themanufacture of the GOODS under the CONTRACTto ensure that the requirements outlined in theCONTRACT are not being deviated with respect toschedule and quality.

13.6 SELLER shall allow the INSPECTOR to visit, duringworking hours, the workshops relevant for executionof the CONTRACT during the entire period ofCONTRACT validity.

13.7 In order to enable PURCHASER’s representativesto obtain entry visas in time, SELLER shall notifyPURCHASER two months before assembly, testingand packing of main EQUIPMENT. If requested,SELLER shall assist PURCHASER’srepresentatives in getting visas in the shortest



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possible time (applicable only in case of foreignorder).

13.8 SELLER shall place at the disposal of theINSPECTOR, free of charge, all tools, instruments,and other apparatus necessary for the inspectionand/or testing of the GOODS. The INSPECTOR isentitled to prohibit the use and dispatch of GOODSand/or materials which have failed to comply withthe characteristics required for the GOODS duringtests and inspections.

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

13.10 ALL TESTS and trials in general, including those tobe carried out for materials not manufactured bySELLER shall be witnessed by the INSPECTOR.Therefore, SELLER shall confirm to PURCHASERby fax or e-mail about the exact date of inspectionwith at least 30 days notice. SELLER shall specifythe GOODS and quantities ready for testing andindicate whether a preliminary or final test is to becarried out.

13.11 If on receipt of this notice, PURCHASER shouldwaive the right to witness the test, timely information will be given accordingly.

13.12 Any and all expenses incurred in connection withtests, preparation of reports and analysis made byqualified laboratories, necessary technicaldocuments, testing documents and drawings shallbe at SELLER’s cost. The technical documentsshall include the reference and numbers of thestandards used in the construction and, whereverdeemed practical by the INSPECTOR, copy of suchstandards.

13.13 Nothing in Article-13 shall in any way release theSELLER from any warrantee or other obligationsunder this CONTRACT.

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 byconsigneesWhen 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 materialsare lying at the risk and cost of thecontractor/supplier. The supplier will be called uponeither to remove the materials or to give instructionsas to their disposal within 14 days and in the case ofdangerous, infected and perishable materials within48 hours, failing which the consignee will eitherreturn the materials to the contractor freight to payor otherwise dispose them off at the contractor’s risk



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and cost. The PURCHASER shall also be entitledto recover handling and storage charges for theperiod, during which the rejected materials are notremoved @ 5% of the value of materials for eachmonth or part of a month till the rejected materialsare finally disposed off.

14 Time Schedule &Progress Reporting

14.1 Time Schedule Network/Bar Chart14.1.1 Together with the Contract confirmation, SELLER

shall submit to PURCHASER, his time scheduleregarding the documentation, manufacture, testing,supply, erection and commissioning of theGOODS.

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, erectionand commissioning.

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

14.1.4 The time schedule network/bar chart shall beupdated 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 to theTime 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 whichshall be conclusive or SELLER shall neglect toexecute the CONTRACT with due diligence andexpedition or shall contravene the provisions of theCONTRACT, PURCHASER/CONSULTANT maygive notice of the same in writing to the SELLERcalling upon him to make good the failure, neglector contravention complained of. Should SELLER failto comply with such notice within the period



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considered reasonable byPURCHASER/CONSULTANT, thePURCHASER/CONSULTANT shall have the optionand be at liberty to take the CONTRACT wholly orin part out of the SELLER’s hand and makealternative arrangements to obtain the requirementsand completion of CONTRACT at the SELLER’srisk and cost and recover from the SELLER, allextra cost incurred by the PURCHASER on thisaccount. In such eventPURCHASER/CONSULTANT shall not beresponsible for any loss that the SELLER may incurand SELLER shall not be entitled to any gain.PURCHASER/CONSULTANT shall, in addition,have the right to encash Performance Guaranteein full or part.

15 Delivery & Documents 15.1 Delivery of the GOODS shall be made by theSELLER in accordance with terms specified in theCONTRACT, and the goods shall remain at the riskof the SELLER until delivery has been completed.

15.2 Part despatches of the purchase order / Contractshall not be resorted to unless otherwise agreed toin writing or provided in Purchase order/Contract .

15.3 Delivery shall be deemed to have been made :

a) In the case of FOB, CFR & CIF Contracts,when the Goods have been put on board theship, at the specified port of loading and aclean Bill of Lading is obtained. The date ofBill of Lading shall be considered as thedelivery date.

b) In case of FOT despatch point contract (ForIndian bidder), on evidence that the goodshave been loaded on the carrier and anegotiable copy of the GOODS receiptobtained. The date of LR/GR shall beconsidered as the date of delivery.

c) In case of FOT site (for Indian bidders) onreceipt of goods by PURCHASER/Consultantat the designated site(s).

15.4 The delivery terms are binding and essential andconsequently, no delay is allowed without thewritten approval of PURCHASER/CONSULTANT.Any request concerning delay will be void unlessaccepted by PURCHASER/CONSULTANT througha modification to the CONTRACT.

15.5 Delivery time shall include time for submission ofdrawings for approval, incorporation of comments, ifany, and final approval of drawings byPURCHASER/CONSULTANT.

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

15.7 The documentation, in English Language, shall bedelivered in due time, in proper form and in the



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required number of copies as specified in thecontract.

15.8 The additional copies of final drawings andinstructions will be included in the package ofgoods, properly enveloped and protected.

15.9 The SELLER should comply with the Packing,Marking and Shipping Documentation Specificationsenclosed.

16 Transit Risk Insurance 16.1 All goods supplied under the contract shall be fullyinsured in a freely convertible currency against lossor damage incidental to manufacture or acquisition,transportation, storage and delivery.

16.2 Where delivery is on FOB or CFR basis, marineinsurance shall be the responsibility of thePurchaser.Insurance Requirements :

Indigenous Bidders :Transit risk insurance fromF.O.T. despatch pointonwards shall be arrangedand borne by GAIL.

Foreign Bidders : Marine insurance as well astransit insurance inPurchaser’s country shall bearranged and borne by GAIL.

The SELLER shall ensure that in effecting despatchof materials, the primary responsibility of thecarriers for safe movement is always retained sothat the PURCHASER’s interests are fullysafeguarded and are in no way jeopardised. TheSeller shall furnish the cost of materials againsteach equipment.

16.3 PURCHASER’s Insurance Agent :[The name and address shall be intimated on awardof order ]

17 Transportation 17.1 Where the SELLER is required under theCONTRACT to deliver the GOODS FOB, transportof the GOODS until delivery, that is, upto andincluding the point of putting the GOODS on boardthe export conveyance at the specified port ofloading, shall be arranged and paid for by theSELLER and the cost thereof shall be included inthe Contract price.

17.2 Where the SELLER is required under theCONTRACT to deliver the GOODS CFR or CIF,transport of the Goods to the port of discharge orsuch other point in the country of destination asshall be specified in the CONTRACT shall be



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arranged and paid for by the SELLER and the costthereof shall be included in the Contract price.

17.3 Where the SELLER is required under theCONTRACT to deliver the GOODS FOT works ,transport of the GOODS until delivery, that is, uptosite shall be arranged and paid for by the SELLERand the cost thereof shall be included in theContract price.

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

Performance or supervision of onsite assemblyand/or start-up of the supplied Goods:

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

Performance or supervision or maintenance and/orrepair of the supplied Goods, for a period of timeagreed by the parties, provided that this service shallnot relieve the Seller of any warrantee/guaranteeobligations under the Contract.

Training of the Purchaser’s personnel at the Seller’splant and/or at Site, in assembly, start-up operation,maintenance and/or repair of the supplied Goods atno extra cost. However, Purchaser will bearboarding, lodging & personal expenses of Trainees.

18.2 Prices charged by the Seller for the precedingincidental services, shall not exceed the prevailingrates charged to other parties by the Seller for similarservices.

18.3 When required, Seller shall depute necessarypersonnel for supervision and/or erection of theEquipment at site for duration to be specified byPurchaser on mutually agreed terms. Seller’spersonnel shall be available at Site within seven daysfor emergency action and twenty-one days for mediumand long-term assistance, from the date of notice givenby Purchaser.

18.4 The cost of incidental services shall not be includedin the quoted prices. The cost of applicableincidental services should be shown separately inthe price schedules.

19 Spare Parts,Maintenance Tools,Lubricants

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

19.1.1 Such spare parts as the Purchaser may optto purchase from the Seller, provided that hisoption shall not relieve the Seller of any warrantee



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obligations under 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 topermit the Purchaser to procure neededrequirements, and

ii) Following such termination, furnishing at nocost to the Purchaser, the blue prints,drawings and specifications of the spareparts, if any when requested.

19.2 Seller shall supply item wise list with value of eachitem of spare parts and maintenance toolsrequirements, along with full details ofmanufacturers/vendors for suchspares/maintenance tools for :

The construction, execution and commissioning.

2 years operation and maintenance.

19.3 Spare parts shall be new and of first class quality asper engineering standards/ codes, free of any defects(even concealed), 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 fornormal maintenance and special handling and liftingappliances, if any, for the Goods shall be submitted toPurchaser.

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

19.8 Lubricants

Whenever lubricants are required, Seller shallindicate the quantity of lubricants required for the firstfilling, the frequency of changing, the quantity oflubricants required for the one year’s continuousoperation and the types of recommended lubricantsindicating the commercial name (trade-mark), qualityand grade.

If Seller is unable to recommend specific oil, basicrecommended characteristics of the lubricants shallbe given.

Seller shall indicate various equivalent lubricantsavailable in India.

20 Guarantee 20.1 All Goods or Materials shall be supplied strictly in



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accordance with the specifications, drawings, datasheets, other attachments and conditions stated inthe Contract.No deviation from such specifications or alterationsor of these conditions shall be made withoutPURCHASER’S /CONSULTANT’S agreement inwriting which must be obtained before any workagainst the order is commenced. All materialssupplied by the SELLER pursuant to the Contract(irrespective of whether engineering, design data orother information has been furnished, reviewed orapproved by PURCHASER/CONSULTANT) areguaranteed to be of the best quality of theirrespective kinds (unless otherwise specificallyauthorised in writing byPURCHASER/CONSULTANT) and shall be freefrom faulty design, workmanship and materials, andto be of sufficient size and capacity and of propermaterials so as to fulfil in all respects all operatingconditions, if any, specified in the Contract.If any trouble or defect, originating with the design,material, workmanship or operating characteristicsof any materials, arises at any time prior totwelve(12) months from the date of the firstcommercial operation of the Plant for which thematerials supplied under the Contract form a partthereof, or twenty four (24) months from the date oflast shipment whichever period shall first expire,and the SELLER is notified thereof, SELLER shall,at his own expense and as promptly as possible,make such alterations, repairs and replacements asmay necessary to permit the materials to function inaccordance with the specifications and to fulfil theforegoing guarantees.PURCHASER/CONSULTANT may, at his option,remove such defective materials, at SELLER’Sexpense in which event SELLER shall, without costto PURCHASER/CONSULTANT and as promptlyas possible, furnish and install proper materials.Repaired or replaced materials shall be similarlyguaranteed by the SELLER for a period of no lessthan twelve (12) months from the date ofreplacement/repair.In the event that the materials supplied do not meetthe specifications and/or not in accordance with thedrawings data sheets or the terms of the Contractand rectification is required at site,PURCHASER/CONSULTANT shall notify theSELLER giving full details of differences. TheSELLER shall attend the site within seven (7) daysof receipt of such notice to meet and agree withrepresentatives of PURCHASER/CONSULTANT,the action required to correct the deficiency. Shouldthe SELLER fail to attend meeting at Site within thetime specified above, PURCHASER/CONSULTANT



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shall immediately rectify the work/materials andSELLER shall reimburse PURCHASER all costsand expenses incurred in connection with suchtrouble or defect.

20.2 PERFORMANCE GUARANTEE OF EQUIPMENT

20.2.1 SELLER shall guarantee that the performance ofthe EQUIPMENT supplied under the CONTRACTshall be strictly in conformity with the specificationsand shall perform the duties specified under theCONTRACT.

20.2.2 If the SELLER fails to prove the guaranteedperformance of the EQUIPMENT set forth in thespecification, the SELLER shall investigate thecauses and carry out necessaryrectifications/modifications to achieve theguaranteed performance. In case the SELLER failsto do so within a reasonable period, the SELLERshall replace the EQUIPMENT and proveguaranteed performance of the new equipmentwithout any extra cost to PURCHASER.

20.2.3 If the SELLER fails to prove the guarantee within areasonable period, PURCHASER/CONSULTANTshall have the option to take over the EQUIPMENTand rectify, if possible, the EQUIPMENT to fulfil theguarantees and/or to make necessary additions tomake up the deficiency at Seller’s risk and cost. Allexpenditure incurred by thePURCHASER/CONSULTANT in this regard shall beto SELLER’s account.

21 Terms of Payment 21.1 For Domestic Bidder’s

100% ( Hundred percent ) payment along with taxes, duties , transportation charges shall be paidagainst receipt and acceptance of materials at sitethrough E-banking .

21.2 For Foreign Bidder’s :

100% payment of FOB value ( excluding Indianagent commissioning, if any ) shall be paid throughirrevocable and un-confirmed Letter of creditagainst shipping documents . If confirmed Letter ofcredit is requested by the vendors , the confirmationcharges shall be to vendor’s account .

21.3 The SELLER’s request(s) for payment shall bemade to the PURCHASER in writing accompaniedby an invoice describing, as appropriate, the Goodsdelivered and services performed, and by shippingdocuments submitted, and upon fulfillment of otherobligations stipulated in the Contract.



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21.4 Payment will be made in the currency or currenciesin which the Contract Price has been stated in theSELLER’s bid, as well as in other currencies inwhich the SELLER had indicated in his bid that heintends to incur expenditure in the performance ofthe Contract and wishes to be paid. If therequirements are stated as a percentage of the bidprice along with exchange rates used in suchcalculations 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/C shallbe established within 30 days after receipt ofunconditional acceptance of Letter /Fax of Intenttogether with Performance Guarantee for 10% of totalorder/Contract value.

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

3. Payment shall be released within 30 days after receiptof relevant documents complete in all respects.

4. All bank charges incurred in connection with paymentsshall be to Seller’s account in case of Indian biddersand to respective accounts in case of Foreign 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, shallbe payable by PURCHASER.

7. In case of Indian bidder, variation, if any, on account ofcustoms duty on their built-in- import content, as perterms of bid document, shall be claimed separately bybidder after receipt of goods at site (s). However, anyprice benefits to the PURCHASER, on account of suchvariation as per terms specified in the bid document,shall be passed on to the PURCHASER alongwithinvoicing itself.

8. Agency commission, if any, to Indian agent for Foreignbidders, indicated in prices, shall be paid to the agentin equivalent Indian Rupees on receipt and acceptanceof material at site.

22 Prices 22.1 Prices charged by the SELLER for Goods deliveredand services performed under the CONTRACT shallnot, with the exception of any price adjustmentsauthorized by the Contract vary from the pricesquoted by the SELLER in his bid.



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23 Subletting &Assignment

23.1 The contractor shall not without previous consent inwriting of the PURCHASER authority, sublet,transfer or assign the contract or any part thereofor interest therein or benefit or advantage thereofin any manner whatsoever. Provided,nevertheless, that any such consent shall notrelieve the contractor from any obligation, duty orresponsibility under the contract.

24 Time As Essence ofContract

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

25 Delays In The Seller’sPerformance

25.1 If the specified delivery schedule is not adhered toor the progress of manufacture or supply of theitems is not satisfactory or is not in accordance withthe progress schedule the PURCHASER has theright to:i) hire for period of delay from elsewhere goods

which in PURCHASER’s opinion will meet thesame purpose as the goods which are delayedand SELLER shall be liable without limitationfor the hire charges; or

ii) cancel the CONTRACT in whole or in partwithout liability for cancellation charges. In thatevent, PURCHASER may procure fromelsewhere goods which PURCHASER’sopinion would meet the same purpose as thegoods for which CONTRACT is cancelled andSELLER shall be liable without limitations forthe difference between the cost of suchsubstitution and the price set forth in theCONTRACT for the goods involved; or

iii) hire the substitute goods vide (I) above and ifthe ordered goods continue to remainundelivered thereafter, cancel the order in partor in full vide (ii) above.

25.2 Any unexcusable delay by the SELLER or his sub-contractor shall render the SELLER liable, withoutprejudice to any other terms of the Contract, to anyor all of the following sanctions: forfeiture ofContract performance guarantee, imposition ofprice reduction for delay in delivery and terminationof the contract for default.

26 Price ReductionSchedule For DelayedDelivery

26.1 Subject to Article -29, if the SELLER fails to deliverany or all of the GOODS or performance theservices within the time period (s) specified in theCONTRACT, the PURCHASER shall, withoutprejudice to his other remedies under theCONTRACT, deduct from the CONTRACT PRICE,a sum calculated on the basis of the CONTRACTPRICE, including subsequent modifications.



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26.1.1 Deductions shall apply as per following formula:In case of delay in delivery of equipment/materialsor delay in completion, total contract price shall bereduced by ½ % (half percent) of the total contractprice per complete week of delay or part thereofsubject to a maximum of 5% (five percent) of thetotal contract price.

26.2 In case of delay in delivery on the part of Seller, theinvoice/document value shall be reducedproportionately for the delay and payment shall bereleased accordingly.

26.3 In the event the invoice value is not reducedproportionately for the delay, the PURCHASER maydeduct the amount so payable by SELLER, fromany amount falling due to the SELLER or byrecovery against the Performance Guarantee.

Both seller and PURCHASER agree that the abovepercentages of price reduction are genuine preestimates of the loss/damage which thePURCHASER would have suffered on account ofdelay/breach on the part of the SELLER and thesaid amount will be payable on demand withoutthere being any proof of the actual loss/or damagecaused 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 byINSPECTOR shall not prejudicePURCHASER’s/CONSULTANT’s claim for rejectionof the EQUIPMENT on final inspection at SITE orclaims under warranty provisions.

27.2 If the EQUIPMENTS are not of specification or failto perform specified duties or are otherwise notsatisfactory the PURCHASER/CONSULTANT shallbe entitled to reject the EQUIPMENT/MATERIAL orpart thereof and ask free replacement withinreasonable time failing which obtain hisrequirements from elsewhere at SELLER’s cost andrisk.

27.3 Nothing in this clause shall be deemed to deprivethe PURCHASER AND/OR AFFECT ANY rightsunder the Contract which it may otherwise have inrespect of such defects or deficiencies or in any wayrelieve the SELLER of his obligations under theContract.

27.4 EQUIPMENT rejected by thePURCHASER/CONSULTANT shall be removed bythe Seller at his cost within 14 days of notice afterrepaying the amounts received against theSUPPLY. The PURCHASER shall in no way beresponsible for any deterioration or damage to theEQUIPMENT under any circumstances whatsoever.

27.5 In case of rejection of EQUIPMENT, PURCHASER



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shall have the right to recover the amounts, if any,from any of CONTRACTOR’S invoices pending withPURCHASER or by 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 writtennotice of default sent to the SELLER, terminate theCONTRACT in whole or in part:A) If the SELLER fails to deliver any or all of the

GOODS within the time period(s) specified inthe CONTRACT; or

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

C) If the SELLER, in either of the abovecircumstances, does not cure his failure withina period of 30 days (or such longer period asthe PURCHASER may authorize in writing)after receipt of the default notice from thePURCHASER.

28.1.2 In the event the PURCHASER terminates theCONTRACT in whole or in part, pursuant to Article28.1.1, the PURCHASER may procure, upon suchterms and in such manner as it deems appropriate,goods similar to those undelivered and the SELLERshall be liable to the PURCHASER for any excesscosts for such similar GOODS. However, theSELLER shall continue performance of theCONTRACT to the extent not terminated.

28.1.3 In case of termination of CONTRACT herein setforth (under clause 28) except under conditionsof Force 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 tendernor their offer will be considered by GAIL againstany ongoing tender (s) where contract betweenGAIL and that particular VENDOR (as a bidder)has not been finalized] for three years from thedate of termination by GAIL (India) Ltd. to suchVENDOR.

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 theSELLER becomes bankrupt or otherwise insolvent,provided that such termination will not prejudice oraffect any right of action or remedy which hasaccrued or will accrue thereafter to thePURCHASER.

28.3 Termination for Convenience28.3.1 The PURCHASER may, by written notice sent to

the SELLER, terminate the CONTRACT, in whole orpart, at any time for his convenience. The notice oftermination shall specify that termination is for the



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PURCHASER’s convenience, the extent to whichperformance of work under the CONTRACT isterminated and the date upon which suchtermination becomes effective.

28.3.2 The GOODS that are complete and ready forshipment within 30 days after the SELLER’s receiptof notice of termination shall be purchased by thePURCHASER at the CONTRACT terms and prices.For the remaining GOODS, the PURCHASER mayopt: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 partiallycompleted GOODS and for materials and partspreviously procured by the SELLER.

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 delaysthe execution of the Contract by the SELLER.

The SELLER shall advisePURCHASER/CONSULTANT by a registered letterduly certified by the local Chamber of Commerce orstatutory authorities, the beginning and end of theabove causes of delay within seven (7) days of theoccurrence 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 tocancel the Contract and the provisions governingtermination stated under Article 28.0 shall apply.For delays arising out of Force Majeure, theSELLER shall not claim extension in completiondate for a period exceeding the period of delayattributable to the causes of Force Majeure andneither PURCHASER/CONSULTANT nor SELLERshall be liable to pay extra costs provided it ismutually established that Force Majeure Conditionsdid actually exist.SELLER shall categorically specify the extent ofForce Majeure Conditions prevalent in their works atthe time of submitting their bid and whether thesame have been taken into consideration or not intheir quotations. In the event of any force majeurecause, the SELLER or the PURCHASER shall notbe liable for delays in performing their obligationsunder this order and the delivery dates will beextended to the SELLER without being subject toprice reduction for delayed deliveries, as statedelsewhere.



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30 Resolution ofDisputes/Arbitration

30.1 The PURCHASER and the SELLER shall makeevery effort to resolve amicably by direct informalnegotiations any disagreement or dispute arisingbetween them under or in connection with thecontract.

30.2 If, after thirty days from the commencement of suchinformal negotiations, the PURCHASER and theSELLER have been unable to resolve amicably aContract dispute, either party may require that thedispute be referred for resolution to the formalmechanism as specified hereunder.

30.3 Legal ConstructionThe Contract shall be, in all respects be construedand operated as an Indian Contract and inaccordance with Indian Laws as in force for the timebeing and is subject to and referred to the Court ofLaw situated within Union Territory of New Delhi.

30.4 ArbitrationAll disputes, controversies, or claims between the parties

(except in matters where the decision of theEngineer-in-Charge is deemed to be final andbinding) which cannot be mutually resolved within areasonable time shall be referred to Arbitration by asole arbitrator.

The PURCHASER (GAIL (India) Limited) shall suggest apanel of three independent and distinguishedpersons to the Seller to select any one among themto act as the sole Arbitrator.In the event of failure of the Seller to select the SoleArbitrator within 30 days from the receipt of thecommunication suggesting the panel of arbitrators,the right of selection of Sole Arbitrator by the otherparty shall stand forfeited and the PURCHASERshall have discretion to proceed with theappointment of the Sole Arbitrator. The decision ofthe PURCHASER on the appointment of SoleArbitrator shall be final and binding on 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 ofarbitration proceedings shall be shared equally bythe parties. The arbitration proceeding shall be inEnglish language and the venue shall be at NewDelhi, India.Subject to the above, the provisions of(Indian)Arbitration & Conciliation Act, 1996 and therules framed thereunder shall be applicable. Allmatters relating to this contract are subject to theexclusive jurisdiction of the Courts situated in theState of Delhi (India).Seller may please note that the Arbitration &Conciliation Act 1996 was enacted by the IndianParliament and is based on United nations



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Commission on International Trade Law(UNCITRAL model law), which were prepared afterextensive consultation with Arbitral Institutions andcenters of International Commercial Arbitration.The United Nations General Assembly videresolution 31/98 adopted the UNCITRAL Arbitrationrules on 15 December 1996.

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 The Contract shall be written in English language asspecified by the PURCHASER/CONSULTANT in theInstruction to Bidders. All literature, correspondenceand other documents pertaining to the Contractwhich are exchanged by the parties shall be writtenin English language. Printed literature in otherlanguage shall only be considered, if it isaccompanied by an English translation. For thepurposes of interpretation, English translation shallgovern and be binding on all parties.

32 Notices 32.1 Any notice given by one party to the other pursuantto the Contract shall be sent in writing or bytelegram or fax, 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 alltaxes, stamp duties, licence fees, and other suchlevies imposed outside the PURCHASER’s country.

33.2 A domestic Seller shall be entirely responsible for alltaxes, duties, licence fees etc. incurred until thedelivery of the contracted goods to thePURCHASER. However, Sales Tax and Exciseduty on finished products shall be reimbursed byPURCHASER.

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

33.4 Any income tax payable in respect of supervisoryservices rendered by foreign Seller under theContract shall be as per the Indian Income Tax Actand shall be borne by SELLER. It is upto thebidder/seller to ascertain the amount of these taxesand to include them in his bid price.

34 Books & Records 34.1 SELLER shall maintain adequate books and recordsin connection with Contract and shall make themavailable for inspection and audit byPURCHASER/CONSULTANT or their authorizedagents or representatives during the terms ofContract until expiry of the performance guarantee.Fixed price (lumpsum or unit price) Contract will notbe subject to audit as to cost except for costreimbursable items, such as escalation andtermination claims, transportation and comparable



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requirements.35 Permits & Certificates 35.1 SELLER shall procure, at his expense, all

necessary permits, certificates and licencesrequired by virtue of all applicable laws,regulations, ordinances and other rules in effect atthe place where any of the work is to be performed,and SELLER further agrees to hold PURCHASERand/or CONSULTANT harmless from liability orpenalty which might be imposed by reason of anyasserted or established violation of such laws,regulations, ordinances or other rules.PURCHASER will provide necessary permits forSELLER’s personnel to undertake any work inIndia in connection with Contract.

36 General 36.1 In the event that terms and conditions stipulated inthe General Conditions of Contract should deviatefrom terms and conditions stipulated in the Contract,the latter shall prevail.

36.2 Losses due to non-compliance of InstructionsLosses or damages occurring to the PURCHASERowing to the SELLER’s failure to adhere to any ofthe instructions given by thePURCHASER/CONSULTANT in connection withthe contract execution shall be recoverable from theSELLER.

36.3 Recovery of sums dueAll costs, damages or expenses which thePURCHASER/CONSULTANT may have paid, forwhich under the CONTRACT SELLER is liable, maybe recovered by the PURCHASER(he is herebyirrevocably authorized to do so) from any moneydue to or becoming due to the SELLER under thisContract or other Contracts and/or may berecovered by action at law or otherwise. If the samedue 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 thePURCHASERNo sum paid on account by the PURCHASER norany extension of the date for completion granted bythe PURCHASER/CONSULTANT shall affect orprejudice the rights of the PURCHASER against theSELLER or relieve the SELLER of his obligation forthe due fulfillment of the CONTRACT.

36.5 Cut-off DatesNo claims or correspondence on this Contract shallbe entertained by the PURCHASER/Consultantafter 90 days after expiry of the performanceguarantee (from the date of final extension, if any)

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



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37 Import Licence 37.1 Import licence for bought out items if required to bearranged by bidder .

38 FALL CLAUSE 38.1 The price charged for the materials supplied underthe order by the supplier shall in no event exceedthe lowest price at which the supplier or hisagent/principal/dealer, as the case may be, sells thematerials of identical description to anypersons/organizations including the Purchaser orany department of the Central Govt. or any Deptt.Of a State Govt. or any Statutory Undertaking of theCentral or State Govt. as the case may be, duringthe currency of the order.

38.2 If at any time during the said period, the supplier orhis agent/principal/dealer, as the case may be,reduces the sale price, sells or offers to sell suchmaterials to any persons/organizations includingthe Purchaser or any Deptt. Of Central Govt. orState Govt. as the case may be, at a price lowerthan the price chargeable under the order, he shallforthwith notify such reduction or sale or offer ofsale to the Purchase Authority who has issued thisorder and the price payable under the order for thematerials supplied after the date of coming intoforce of such reduction or sale or offer of sale shallstand 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 fornormal replacement

c) sale of goods such as drugs which haveexpiry dates.

38.3 The supplier shall furnish the following certificate tothe concerned Paying Authority alongwith each billfor payment for supplies made against this order:-“I/We certify that there has been no reduction in

sale price of the items/goods/materials ofdescription identical to those supplied to the GAILunder the order herein and suchitems/goods/materials have not been offered/soldby me/us to any person/organizations including thePurchaser or any Deptt. Of Central Govt. or anyDeptt. Of State Govt. or any Statutory Undertakingof the Central or State Govt. as the case may beupto the date of bill/during the currency of the orderwhichever is later, at a price lower than the pricecharged to the GAIL under the order.”

Such a certificate shall be obtained, except forquantity of items/goods/materials categories under



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sub-clause (a),(b) & (c) of sub-para 38.2 above, ofwhich details shall be furnished by the supplier.

39 Publicity & Advertising Seller shall not without the written permission ofPURCHASER / Consultant make a reference toPURCHASER/Consultant or any Companyaffiliated with PURCHASER/Consultant or to thedestination or the description of goods or servicessupplied under the contract in any publication,publicity or advertising media.

40 Repeat Order 40.1 PURCHASER reserves the right, within 6 months oforder to place repeat order upto 50% of the totalorder value without any change in unit price or otherterms and conditions.

41 Limitation of Liability 41.1 Notwithstanding anything contrary contained herein,the aggregate total liability of Seller under theAgreement or otherwise shall be limited to 100% ofAgreement / Order price. However, neither partyshall be liable to the other party for any indirect andconsequential damages, loss of profits or loss ofproduction.

43. Shipment and advancenotices

43.1 The SELLER shall make despatch only after priorapproval by the Owner whenever specificallymentioned. As soon as any despatch is made, theSeller shall send advance information by way of faxmessage to the following :

a) DGM (C&P),GAIL India LimitedPATA – 206241,ist. Auraiya (UP)Phone :Fax :

b) Project Manager (4288)Projects & Development India LimitedA-14, Sector – 1Noida – 201 301



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SECTION - V

SPECIAL CONDITIONS OF CONTRACT (SCC )



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SPECIAL CONDITIONS OF CONTRACT (SCC )

C O N T E N T

1.0 DELIVERY PERIOD

2.0 PAYMENT TERMS

3.0 PRICE EVALUATION & COMPARISION CRITERIA

4.0 TRANSPORTATION

5.0 SUBSEQUENT PRICE CHANGE

6.0 REJECTION CRITERIA



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SPECIAL CONDITIONS OF CONTRACT (SCC)

1. DELIVERY :

Delivery is essence of the contract. A total item shall be delivered at GAIL, Pata :

- within 5 Months for Indian Bidders on FOT dispatch point - within 4 Months for Foreign Bidders on FOB Port of exit

Delivery period longer than as stipulated above or with any deviation shall render theoffer liable for rejection.

2. PAYMENT TERMS:

2.1 INDIAN BIDDERS:

100% payments shall be made within 30 days after receipt and acceptance of materialat our site through electronic mode (e banking) only to your bank account with SBI/HDFC/ ICICI having e banking facility. Payments will be made through electronic mode(e-banking) only directly to your bank account with SBI/ HDFC/ ICICI having e-bankingfacility. Details required for making payments through electronic mode are to besubmitted in the pro forma attached. You are requested to furnish attached annexure(whichever is applicable) after duly filled and signed. The annexure- I(A) is applicablefor SBI/HDFC bank, Annexure – I (B) for ICICI bank and Annexure – I(C) for otherbank. In case, you do not have an account in any of the above banks, you arerequested to furnish the particulars of your bank as per details attached in annexure-I(C). You are also requested to attach one cancelled cheque along with above format.This is required to enable us to release your payment electronically.

If the bidder has already submitted the bank detail for the payment purpose, they neednot to submit above Annexure.

2.2 FOREIGN BIDDERS:

GAIL may place the order on FOB or C & F basis , at it’s sole discretion .

100% Payment of Total FOB / C & F order value ( as the case may be ) less Indianagent commission (if any), shall be made against presentation of required negotiabledocuments drawn through normal banking channel by establishing irrevocable and un-confirmed letter of credit at Sight. All letter of credit/Bank charges, L/C confirmationcharges and stamp duties payable outside India in connection with payment to bemade shall be borne by the seller.

Alternatively 100% direct payment ( DP ) at sight can be made .

3 PRICE EVALUATION AND COMPARISON CRITERIA:

The lowest evaluated bid AGAINST EACH ITEMS shall be considered for award oforder. The evaluated price shall be calculated as under :

3.1 Where only Indian Bids are under comparison:

• Bids shall be evaluated on the basis of landed cost (i.e. Nett of Cenvat) at Site(i.e. FOT Site price) including all duties, taxes, inland transportation charges &technical loading as per loading criteria (if any).



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• Bidder must furnish price considering Sales Tax on the finished goods (With/Without Concessional sales tax for CST and With/Without concessionalform for LST).

3.2 Where only Foreign Bids are under comparison:

The evaluation of all the responsive bids shall be done on quoted C & F basis.

3.3 Where Domestic as well as Foreign Bids are under comparison :

The evaluated price of domestic bidders shall include the following:

i) Ex-works price quoted by the bidder (including packing, forwarding)ii) Excise duty on the finished goods.iii) Sales Tax on the finished goods- with/without form ‘C’ for CST and with /

without 3B or 3D for LST).iv) Commercial / Technical loading , if any .

The evaluated price of foreign bidders shall include the following:

i) C & F price quoted by the bidderii) Marine insurance @1% of FOB price .iii) Prevailing Project rate of Customs duty.iv) Commercial / Technical loading , if any .

Notes:

• Bidder’s prices will be converted to Indian Rupees at the Bills selling exchangerate declared by State Bank of India on the working day prior to Priced BidOpening.

• Purchase preference to Central Government Public Sector undertakings shallbe allowed as per prevailing Government of India guidelines.

• Domestic price preference, if any .• The foreign bidders are required to provide FOB , C & F and CIF prices

strictly as per price schedule .

4.0 TRANSPORTATION IN CASE OF INDIAN BIDDERS

Bidders to note that the materials, if ordered, against this enquiry are required to bedespatched on door-delivery basis through a reliable Bank approved Road TransportCompany unless the Transport Company is named by Owner.

5.0 SUBSEQUENT PRICE CHANGES ON ACCOUNT OF TECHNICAL / COMMERCIALCLARIFICATION AND / OR VALIDITY EXTENSION

Once quoted, the bidder shall not make any subsequent price changes, whetherresulting or arising out of any technical/commercial clarifications sought regarding thebid, even if any deviation or exclusion may be specifically stated in the bid. Such pricechanges shall render the bid liable for rejection.



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6. REJECTION CRITERIA:

OWNER request bidders to accept all terms and conditions stipulated in this documentin totality for speedy decision. Bidders are requested to note that taking deviation orsuggesting modifications to the following clauses may result in summary rejection oftheir bids:

i) Period of Validity of bids.ii) Arbitration clause.iii) Guarantee Clause.iv) Force Majeure Clausev) Delivery and Delays, Non-conformance and cancellation.vi) Price variation without ceiling or no price variation formula.vii) Performance Bank Guarantee less than 5%viii) Delivery/completion period longer than specified.ix) Deviation in payment terms from the specified terms as mentioned in tender.x) Price reduction clause .xi) Any other deviation to Scope of supply etc..



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ANNEXURE – I (A) TO SCC

FORMAT APPLICABLE FOR PARTIES WILLING TO RECEIVE E-PAYMENTS INTHEIR ACCOUNT WITH SBI/HDFC BANK ONLY)

DY. GENERAL MANAGER (F&A)M/S. GAIL (India) Ltd.P.O.: Pata – 206 241DISTT.: AURAIYA (U.P.) – INDIA

Dear Sir,

SUBJECT: CONSENT FOR RECEIVING PAYMENTS THROUGH ELECTRONIC MODE

This is to confirm that we ……………………………………………………. (Name of theOrganisation) are having our Savings / Current Account No………………………. with………………………………………… (Name of the Bank) ……………………… (Branch Code)to which payment can be released electronically.

Thanking You.

Yours truly,

For………………………………………..

(Name………………………………………………………………………….)

Director/ Proprietor

This is to certify that A/c. No……………………… is maintained byM/s…………………………..…………with our…………………………………………………………… (Name of the Bank & Branch Code).

(Signature with Seal)Branch Manager

Note: The letter should be on letter head of the organization mentioning E- mail ID ofthe contact person.

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ANNEXURE I (B) TO SCC

FORMAT APPLICABLE FOR PARTIES WILLING TO RECEIVEEPAYMENTS IN THEIR ACCOUNT WITH ICICI BANK ONLY)

FORMAT OF LETTER OF MANDATE FOR CREDITING AN EXTERNAL ACCOUNT (ON THELETTER HEAD OF EXTERNAL ACCOUNT HOLDER - FOR e.g. : XYZ)

Ms Deepa Rani PradhanManager,ICICI Bank Ltd.,Corporate & Institutional Banking Division,9A, Phelph Building,Cannaught Place,New Delhi - 01

Dear Sir/Madam,Authority in favour of GAIL (India) Ltd., Pata for linking of our current account________________with ICICI BankPlease refer to our above mentioned current account with ICICI Bank, ________branch_________________.We have business relationship with M/s GAIL (India) Ltd., Pata, where under M/s GAIL (India) Ltd.,Pata have to make regular payments to us from time to time. M/s GAIL (India) Ltd., Pata also have theircurrent account with your bank.

We, hereby request and authorise you to link our current account no. _________ with your ________branch to the current account of M/s GAIL (India) Ltd., Pata under Corporate Internet Banking facility.

We, further request and authorise you to allow M/s GAIL (India) Ltd., Pata and their authorisedrepresentative to credit our above stated current account by any amount/amounts from time to time byusing “Corporate Internet Banking facility of ICICI Bank.

We shall hold ICICI Bank harmless and indemnified and its interest protected on account of acting onour above instructions.

Thanking you,Yours faithfully,For XYZ Ltd

Authorised Signatory

Cc: Dy General Manager (F&A), GAIL (India) Ltd., Pata

Note: For parties willing to receive Epayments in ICICI bank, the details in the above format shall besubmitted directly to the respective bank with a copy to Dy General Manager (F&A), GAIL (India) Ltd.,Pata.

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ANNEXURE I (C) TO SCC

PARTICULARS OF VENDOR REQUIRED FOR PURPOSE OF MAKING PAYMENT CHEQUE(PLEASE ATTACH ONE CANCELLED CHEQUE w.r.t. every Vendor)

(1) Vendor/Customer Name: ______________________________________________

(2) Complete Address : ______________________________________________ ______________________________________________ ______________________________________________(3) Bank’s Name : ______________________________________________(4) Beneficiary A/c No. : ______________________________________________(5) Account Type : ______________________________________________(6) Branch Name : ______________________________________________(7) Bank Address : ______________________________________________ ______________________________________________

______________________________________________(8) MICR Code : ______________________________________________(9) Branch Code : ______________________________________________

Authorized Signatory with Name & seal



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SECTION VI

PRICE SCHEDULE

DOC. NO. 4288-6401-REV. 2 ( ANNEXURE I ) FOR INDIAN BIDDERS

DOC. NO. 4288-6401-REV. 2 ( ANNEXURE II ) FOR FOREIGN BIDDERS



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( ATTACHED WITH TECHNICAL SPECIFICATION )



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SECTION-VII

PACKING, MARKING AND SHIPPINGINSTRUCTIONS



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1.0 PACKINGPacking shall be strong and sturdy such that it can withstand loading/unloading,pushing and crane lifting etc. All packaging shall be done in such a manner as toreduce volume and weight as much as possible without jeopardizing the safety of thematerial. All packing materials shall be new and unless otherwise specified, shall be ofpacker’s standard for export shipments.

Fragile articles should have special packing materials depending on type of materials.

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. Endsshould be capped.

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

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

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

All packages requiring handling by crane should have sufficient space at appropriateplace to put sling of suitable dia (strength). Irons/steels angle should be provided atthe place where sling markings are made to avoid damage to package/equipmentswhile lifting.

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

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

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

Wherever required equipments/materials shall be packed in polythene bags and silicagel or similar dehydrating compound shall be put inside the bags to protect them.

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 theenvelope shall be fastened inside a shell connection with an identifying arrow sign‘Documents” applied with indelible paint.

2.0 MARKING2.1 Each package shall be marked on three sides with proper paints/indelible waterproof

ink as follows:



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Purchaser: GAIL (India) Ltd.

Destination:

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

2.2 Letters, figures, marks etc., used for marking shall be stencil printed. Handwritingshould be avoided as far 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 stencilled the sameshall be embossed on metal or similar tag and wired securely at minimum twoconvenient points and both ends shall be suitably protected/covered. In case of loosepipes sticker of above markings should be pasted on inner wall corner of each pipe onboth sides.

SHIPMENT BY SEA

a) FOR FOB CONTRACTS

Shipping arrangements will be made by the Shipping Co-ordination Officer,Chartering Division, Ministry of Surface Transport, New Delhi through theirforwarding Agents/Nominees as indicated to whom adequate notice of not lessthan six weeks about the readiness of the cargo for shipment, should be givenby the Seller for finalizing the shipping arrangements.

i) For Consignment from UK/Continent Ports: M/s KUEHNE & NAGEL (AG & CO) PH: + 4940 - 73337373

PINKERT WEG 20, 22113, Hamburg, FAX: + 4940 – 7333 79373GERMANY E-mail: [email protected]

ii) For consignment from USA, Atlantic, Gulf & West Ports: PH: + 1 201 9987771M/s. OPT OVERSEAS PROJECT TRANSPORT INC. FAX: + 1 201 998783346, SELLERS STREET, KEARNYNEW JERSEY 07032, USA

iii) For Consignment from Japanese Ports:The Embassy of India, Tokyo, Japan PH: + 81 3 3262 2391 FAX: + 81 3 3234 4866

iv) Black Sea Ports of Bulgaria & Romania:The Secretary, Indo-Soviet Shipping Service CABLE:SHIPINDIA, MUMBAIC/o The Shipping Corporation of India Limited FOR SOVINSHIP‘Shipping House’ 245, Madam Cama RoadMUMBAI – 400 021. PH:+912222026666/ 22026785



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v) Polish Ports:The Secretary, Indo-Polish Shipping Service CABLE: SHIPINDIA,MUMBAIC/o Shipping Corporation of India Limited FOR INDOPOL‘Shipping House’ 245, Madam Cama RoadMUMBAI – 400 021.

vi) For Consignment from other Areas:The Shipping Corporation of India Limited CABLE: SHIPINDIA, MUMBAI‘Shipping House’, 245, Madam Cama RoadMUMBAI – 400 021.

b) FOR C&F/CIF CONTRACTS

The seller shall arrange shipment of stores by vessels belonging to themembers of the Conference Lines. If seller finds that space on the ConferenceLine Vessels is, not available in any specific shipment, he should inform theShipping Co-ordination Officer, Ministry of Surface Transport, 1, Sansad Marg,New Delhi – 110 001 (India) (CABLE: TRANSCHART: 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 AIR

Wherever the shipments are to be effected by Air, the same shall be dispatchedthrough Air India.

4.0 SHIPPING DOCUMENTATION All documents shall be in English Language.

DOCUMENTS REQUIRED BEFORE SHIPMENT

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

DOCUMENTS REQUIRED AFTER SHIPMENT

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 to thearrival of vessel at destination Port. Copies to Port Office must be sent immediatelythrough International Courier.

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 followingshipping documents.

i) Commercial Invoiceii) Bill of Ladingiii) Inspection Release Noteiv) Packing Listv) Freight Memovi) Certificate of Origin



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vii) Test Certificateviii) Test Certificateix) Certificate of Measurement and Weight

One set each of the above documents is to be sent by first class courier to Purchaser atthe address given in the Bidding Document and to Engineer-in- Charge (RespectiveProject Sites).

In case of air shipments, two sets of non-negotiable documents consisting ofCommercial Invoice (ink signed), Packing list, Certificate of Origin, Technical Literatureshall be handed over to Airlines with the instructions that the same should be handedover along with cargo arrival notice and copy of Airway Bill to Destination Airport Notifyparty.

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 notify columnshould indicate GAIL (India) Limited with address.

PACKING LISTPacking list must show, apart from other particulars actual contents in each case, netand gross weights and dimensions and the total number of packages.In case of pipes and plates in bundles, number of pipes/plates with individual length/sizein each bundle must be indicated.

5.0 SHIPPING ADVICE

Within 48 hours after shipment, the Supplier shall send shipping advice by way ofCable/ 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 not tentativeflight No. and Date), Port of Shipment, Bill of Lading No. & Date, contents in brief,Purchase Order Number, total F.O.B. and Freight Values, number of Packages andtotal gross weight, ETD & ETA of vessel. In case of Air shipment throughconsolidation services, information must contain both Master Air Way no. & HouseAirway Bill no.

In case of free replacement/supply of components/parts, the Supplier shall advise byCable/Fax above dispatch particulars along with specific statement ‘Free Supply’‘Value for customs purposes only’.

ADDRESSES Project/ Consignee:

GAIL (India) Limited

[Address]

--------------------------------

-------------------------------

Consignee (for sea port/ airport of entry):

Manager (C&P)GAIL (India) LimitedMMRDA Building, 3rd FloorBandra Kurla Complex, Bandra (East)Mumbai 400051Phone: +91 22 26592261/ 62



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Fax: +91 11 26185941 Ext. 5088#Email: [email protected]

Storehouse(s):

The addresses would be furnished later but prior to despatch.

Bankers:

State Bank of IndiaPata 206 241

Distt.: Auraiya ( UP)

Ph. No. 05683 282356 / 283403 – 5 Extn 30260/30261

Paying Authority: F&A In charge

GAIL (India) LimitedPata – 206 241

SHORT SHIPMENTS

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 duty leviedby Indian Customs on such short packed items.



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