tender-doc-scv-a1d65b.pdf - bharat petroleum

CENTRAL PROCUREMENT ORGANISATION (MKTG) BHARAT PETROLEUM CORPORATION LIMITED

‘A’ INSTALLATION, SEWREE FORT ROAD SEWREE (E), MUMBAI - 400 015

OPEN TENDER FOR SUPPLY OF SELF CLOSING VALVES FOR LPG

CYLINDERS TO VARIOUS LOCATIONS

CRFQ NO.: 1000342012

DUE DATE: 10/12/19 AT 1500 HRS

CPOM:19.IMP.1000342012/19-20:11 19th Nov, 2019 M/s. Dear Sir/Madam,

Subject: Invitation of bid for supply of 14.825 lakh nos. of Self Closing valves (CRFQ no. 1000342012 due on 10/12/19 at 3 pm)

1. You are invited to submit your offer in a two-part bid for supply of 14.825 lakh nos. Self Closing (SC valves) for LPG cylinders (as per the drawing attached herewith) over a period of 3 months from the date of placement of Rate Contract at various locations spread all over India as intimated from time to time on the terms and conditions contained in this tender document. The contract period can be extended/repeated at the sole discretion of BPCL for further period of upto three months including increasing the contract quantity calculated on pro-rata basis on repeat order basis, at the same terms & conditions.

2. Any manufacturer having valid approval from PESO and license from BIS for manufacture of Self closing valves required in this tender as per IS- 8737 (latest revision), as on the original due date of this tender is eligible for quoting.

3. This tender document consists of the following annexures, which are enclosed:

a) Techno-commercial Bid

3.1 Annexure I - Instructions to Tenderer 3.2 Annexure II - General Instructions to tenderers for e-Tendering for the bid 3.3 Annexure III - Proforma of Integrity Pact 3.4 Annexure IV -Technical Specifications for SC valves 3.5 Annexure V - Drawings 3.6 Annexure VI - Terms & conditions of Agreement for Procurement of SC valves 3.7 Annexure VII- Quality Discipline Guidelines

Information pertaining to Particulars of Tenderers and Relationship with Directors shall have to be submitted online.

b) Price Bid: A price bid shall also have to be submitted online as per the proforma given in Annexure I mentioned in point 3.1 above.

4. Tenderers shall also have to essentially sign an Integrity Pact (IP) for participating in

this tender, as per the proforma mentioned in point (3.3) above. The salient points to be noted in regard to IP are:

A. FOR ANY QUERIES / CLARIFICATIONS ON TENDER PLEASE CONTACT AS UNDER: For any queries/clarifications, if any, please feel free to contact us on any working day between 10:00 am to 4:00 pm:

Name MUMTAZ KARIM AMIT KUMAR

Contact No +91-24176572 +91-8017777468

+91-22-24176417 +91-9769992420

Email Id [email protected] [email protected]

mailto:[email protected]


Office Address BPCL, Central Procurement Organization (Mktg), ‘A’ Installation, Sewree-Fort Road, Sewree (E), Mumbai - 400 015

B. Only in case of any complaints regarding the Tender/ Tender Conditions, please

contact following Independent External Monitors (IEM) :

Shri Vikram Srivastava, Address: E -202, Second Floor, Greater Kailash Part -2, New Delhi-110048, Mobile : 09810642323,

Email : [email protected]

Shri Virendra Bahadur Singh, Address: N. No. B-5/64, Vineet Khand, Gomti Nagar, Lucknow – 226010, Mobile : 08853760730,

Email: [email protected]

Shri Anupam Kulshreshtha, Address: B-3/3, ‘Yarrows Apartments’, Plot C-58/5, Sector 62, Noida, UP-201309. Mobile : 9968281160 Email: [email protected]

5. Please visit the website https://bpcleproc.in for participating in this tender process and submitting your bid online.

6. Additionally, you shall be required to submit the EMD (if applicable), in physical form at our office.

7. A Pre-Bid Meeting will be held at CPO(M) office at Sewree on 26th November 2019 at 1430 hrs.

8. Your online bid should be submitted on or before the due date of this tender viz. 10th December, 2019 by 3 pm.

9. E-tender system will automatically close on the due date and time and bidders will not be able to submit their bids after the closing time. Bids not in the prescribed format are liable to be rejected. BPCL does not take any responsibility for any delay in submission of online bids due to connectivity problem or non-availability of site and/or other documents/instruments to be submitted in physical form due to postal delay. No claims on this account shall be entertained.

10. Price bid of only those tenderers shall be opened whose techno-commercial bid is found to be acceptable.

11. Bidders, holiday-listed by BPCL or MOP&NG which is valid as on the original due date of this tender, shall not be considered. BPCL reserves the right to accept or reject any or all the Offers at their sole discretion without assigning any reason whatsoever. BPCL’s decision on any matter shall be Final & any bidder shall not enter into correspondence with BPCL unless asked for. BPCL may call for additional documents if required. BPCL would also consider information already available with them regarding Bidder’s credentials.




https://bpcleproc.in/

12. SUPPORT DESK: In case of any clarification pertaining to E-Procurement Process, the vendor may contact ETL on Contact Numbers and E-Mail Ids, as appended below.

All India : +91 7968136861 / +91 7968136854: [email protected] CPO(M) Office : Harshal Sapkale (022 24176419) : [email protected]

Mohnish Gore (6351896637) : [email protected]

Thanking you,

Yours faithfully, For Bharat Petroleum Corporation Ltd. Amit Kumar Procurement Leader –CPO (Mktg)




CRFQ NO. 1000342012 ANNEXURE I

INSTRUCTIONS TO TENDERER

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INSTRUCTIONS TO TENDERER 1. Competitive offers are invited in two part bid from the manufacturers of Self-

Closing Valves (SC valves) for the supply and delivery of approximately 14.825 lakh nos. SC valves on the terms and conditions contained herein.

2. Bid Qualification Criterion (BQC)

The Eligibility Criterion/ BQC Norms for Vendors to participate in the tender are given as under. Bidders must submit relevant documents as per bid qualifying criteria for this tender and all such documents must be valid as on the original due date of tender:

a) Tenderers must have valid PESO approval and BIS license for manufacture of SC Valves required in this tender document as per IS- 8737 (latest revision) as on the original due date of this tender.

b) Tenderer should not be serving any Holiday Listing orders issued by BPCL or MOPNG debarring them from carrying on business dealings with BPCL/MOPNG or serving a banning order by another Oil PSE for a period that is not over as on the original due date of this tender.

Notwithstanding any other condition/ provision in the tender documents, in case of ambiguity or incomplete documents pertaining to BQC, bidders shall be given only one opportunity with a fixed deadline after bid opening to provide complete & unambiguous documents in support of meeting the BQ criteria through e-portal. In case the bidder fails to submit any documents or submits incomplete documents within the given time, the bidders tender will be rejected.

3. The total requirement shown in this tender enquiry is for a period of 3 months from the date of placement of Rate Contract. The contract placed on successful tenderers may be extended/repeated at sole discretion of Corporation for a further period of up to 3 months including increasing the contract quantity calculated on pro-rata basis on repeat order basis, at the same terms & conditions. Escalation / De-escalation shall be admissible as per the requisite Terms & Condition, for the original a well as the extended period also (if any).

4. This is basically a rate contract and quantities are not guaranteed. However, state-wise estimated requirement as per best estimate is given at the end of this annexure. BPCL reserves the right to ask for supplies to those states also that are not appearing in the list.

5. To become eligible to participate in this tender, the total offered quantity of each Tenderer should be a minimum of 50,000 nos. SC Valves and in multiples of 10,000 nos. thereafter.

6. Offers should strictly be in accordance with the tender terms & conditions and our specifications. Tenderers are requested to carefully study all the



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documents/annexures and understand the conditions, specifications, drawings etc. before submitting the tender and quoting the rates. In case of doubt, written clarifications should be obtained, but this shall not be a justification for request for extension of due date for submission of bids.

7. REFERENCE FOR DOCUMENTATION:

a. The number and date of Collective Request for Quotation (CRFQ) must appear on all correspondence before finalization of Rate Contract / Purchase Order.

b. After finalization of Rate Contract / Purchase Order, the number and date of Rate Contract/Purchase Order must appear on all correspondence, drawings, invoices, dispatch advices, (including shipping documents if applicable) packing list and on any documents or papers connected with this order.

8. RIGHT OF CORPORATION TO ACCEPT OR REJECT TENDER:

The right to accept the tender will rest with the corporation. 9. LANGUAGE OF BID:

The Bid and all supporting documentation and all correspondence exchanged by tenderer and Corporation, shall be written in English language only.

10. Tenderers are requested to accept the Integrity Pact (IP) document by signing it. This document is essential & binding. Tenderer’s failure to accept the IP document may result in the bid not being considered for further evaluation.

11. Techno-commercial bid (consisting of the entire attached tender document, Credential Bid and Declaration Form) and Price bid as well as all uploaded documents (as mentioned in clause (15) below) shall form the part of the tender. Both the techno-commercial bid and the price bid will be online only. Only EMD is exception to this rule, which will have to be submitted in envelope. General Instructions to tenderers for e-Tendering for bid are enclosed as Annexure II.

12. All the supporting documents should be legible and duly signed, stamped and attested by the authorized signatory as specified in clause (13) below, before uploading them online.

13. Techno-commercial bid and price bid shall be required to be digitally signed with a class IIB or above digital signature by the authorised signatory. The authorized signatory shall be :

a. Proprietor in case of proprietary concern. b. Authorised partner in case of partnership firm.



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c. Director, in case of a limited Company, duly authorized by its board of directors to sign.

If for any reason, the proprietor or the authorised partner or director as the case may be are unable to sign the document, the said document should be signed by the constituted attorney having full authority to sign the tender document and copy of such authority letter as also the power of attorney, duly signed in the presence of a Notary public should be submitted online with the bid.

Online submission of the tender under the digital signature of the authorized signatory shall be considered as token of having read, understood and totally accepted all the terms and conditions. Tenderer’s digital signature on the documents shall be considered as total acceptance of the terms & conditions.

14. Earnest Money Deposit (EMD)

a) The tenderers shall submit an interest-free Earnest Money Deposit of Rs. 10 lakh (Rupees ten lakhs only) in the form of -

i. Demand Draft drawn on any nationalised/ scheduled bank in favour of “BHARAT PETROLEUM CORPORATION LTD” payable at Mumbai.

OR ii. Bank Guarantee (BG) executed by any Scheduled Bank approved by

Reserve Bank of India as per the pro-forma given at the end of this Annexure. The BG shall remain valid for a period of six months from the due date of opening of the tender

b) EMD should be submitted in physical form in a sealed cover addressed to

Procurement Leader (Group 1), boldly super-scribed on the outer cover –

CRFQ number

Item

Closing date/Time

Name of the tenderer

It should be dropped in the tender box or sent by Registered Post/Courier to the following address so as to reach on or before the due date & time of the tender:

Central Procurement Organization (CPO), ‘A’ Installation, Sewree Fort Road, Sewree, Mumbai-400015

BPCL will not be responsible for non-receipt of instrument(s) due to postal delay/loss in transit etc.

c) Cheques, cash, Money Orders, Fixed deposit Receipts etc. towards EMD

are not acceptable. Similarly, request for adjustment against any previously



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deposited EMD/Pending Dues/Bills/Security Deposits of other contracts etc. will not be accepted towards EMD.

d) Bid received without the EMD is liable to be rejected.

e) Units registered with National Small Industries Corporation (NSIC) and/or

Micro or Small Enterprises (MSE) are however, exempted from payment of EMD, subject to:

The unit being registered for the item tendered. Registration certificate being valid as original due date of the tender.

As the case may be, such tenderers must upload a photocopy of valid NSIC Registration Certificate/ Review certificate duly certified by TPIA (photocopy of application for registration as NSIC or for renewal will not be acceptable) and/or duly certified by TPIA of all the pages of the EM-II certificate issued by any authority mentioned in the Public Procurement policy of MSEs-2012 or self-attested copy of Udyog Aadhaar Memorandum (UAM), failing which such bid will be treated as bid received without EMD and liable to be rejected. Such tenderers should also upload a declaration on a duly notarized Rs.100 stamp paper stating that, in the event of award of contract, all the ordered supplies shall be made from the premises for which MSE certificate has been submitted.

f) Registration with DGS&D will not entitle the Tenderer to claim exemption

from payment of EMD.

g) EMD is liable to be forfeited (over and above the Holiday listing as applicable vide Holiday Listing policy as specified in Clause 22 of this Annexure), in the event of :

i. Withdrawal of offers during the validity period of the offer. (Refer item no. 19 of this Annexure)

ii. Non-acceptance of LOI/order, if and when placed.

iii. Any unilateral revision in the offer made by the tenderer during the validity of the offer.

iv. Non-payment of Supply and Performance Guarantee amount within the stipulated period of 10 days from date of LOA/ the Purchase Order whichever is earlier.

h) EMD will be refunded by National Electronic Fund Transfer to all the successful tenderers after they deposit the amount for Supply and



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Performance Guarantee (refer Item 2 of Annexure VI) against LOA/Purchase Orders, as placed. In case of successful vendor wishes to convert the EMD amount to Supply and performance Guarantee amount, the vendor should submit written request for the same.

i) EMD will be refunded by National Electronic Fund Transfer to all the unsuccessful tenderers after placement of order on all successful tenderers.

15. The complete process for submitting the bid is as follows:

All bidders shall have to submit the quotes. The definition of a bidder is the entity which has unique BIS licence and unique PESO approval.

A. Techno-commercial bid

a. Accept the contents of the following annexures in toto by selecting the appropriate option in the forms provided for this purpose:

i Instructions to Tenderer - Annexure I ii General Instructions to tenderers for - Annexure II

e-Tendering iii Technical Specifications of for SC Valves - Annexure IV iv Drawings - Annexure V v The terms & conditions of Agreement for - Annexure VI

Procurement of SC Valves vi Quality Discipline Guidelines - Annexure VII

b. Proforma of Integrity Pact has been uploaded as Annexure III of tender documents. Tenderer shall be required to download and print it such that it is legible. All pages of the printed copy of IP should be duly signed by the authorized signatory as specified in clause (13) above and witnessed. Thereafter, that copy should be scanned and uploaded by tenderer along with other bid documents.

c. Upload a scanned copy (in pdf or jpg format) of the following documents.

i. Certificate of PESO approval and BIS licence duly attested (original as well as the latest renewal certificate, if applicable) valid as on original due date of tender.

ii. Integrity Pact duly signed and witnessed iii. Copy of PAN Card iv. Copy of Valid NSIC certificate or copy of all the pages of the EM-II certificate

issued by any authority mentioned in the Public procurement policy of MSEs-2012 or self-attested copy of Udyog Aadhaar Memorandum (UAM), (if applicable)

v. Copy of the certificate stating that MSEs is owned by Scheduled Caste (SC) or the Scheduled tribe (ST) entrepreneurs,(if applicable) and also CA certificate declaring the percentage of shareholding of SC/ST entrepreneur(s)



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vi. In case MSEs is owned by Women entrepreneurs then submit a copy of Aadhaar Card of the women entrepreneur(s) and CA certificate declaring the percentage of shareholding of Women entrepreneur(s).

vii. Bidder’s declaration on a duly notarized Rs.100 stamp paper stating that, in the event of award of contract, all the ordered supplies shall be made from the premises for which MSE certificate has been submitted.

All the documents as mentioned above from (i), (iii), (iv), (v) and (vi) should be duly verified and certified by TPIA who are registered under “NABCB accredited bodies as per requirement of ISO/IEC17020 as Type A” in QCI NABCB website (link to the website is as follows - nabcb.qci.org.in/accreditation/reg bod_inspection_bodies.php) as on date of verification of documents. The verification and certification should include Name and contact details (contact number and e-mail ID) of the certifying officer, TPIA name with the address of TPIA branch undertaking the certification. All charges of the Third party for attestations and verification shall be borne by the Bidders. In case the no. of pages to be uploaded are more, then the same can also be zipped and uploaded.

d. Online fill in the information in Credential Bid Form and Declaration Form.

Additionally, EMD [if applicable] has to be submitted in physical form.

In case the no. of pages to be uploaded are more, then the same can also be zipped and uploaded.

Additionally, EMD [if applicable] has to be submitted in physical form.

B. Price bid Online fill in the quotes in the price bid form. The proforma of the price bid form has been provided as clause (28) of this annexure

16. Incomplete bids or bids received with deviations/subjective or counter conditions/quantity restrictions are liable to be rejected. No further correspondence/enquiries raised on this issue by the tenderer shall be entertained. Any terms and conditions stated by the Tenderer in his bid will not be binding on the Corporation.

17. Bids submitted after the due date and time and those not in the format or not in conformity with the prescribed terms and conditions or specifications shall be summarily rejected and no further correspondence/ enquiries shall be entertained on the issue. No responsibility shall be taken by the Corporation and no claims on this account shall be entertained.



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18. Unsolicited / conditional discounts if offered by any party will not be considered and offers of parties offering such unsolicited discounts are liable to be rejected.

19. The rates quoted against this tender shall be valid for a period of 90 days from the date of opening of the tender.

20. ACCEPTANCE OF BIDS BY THE CORPORATION:

a) Techno-commercial Bid

Based on the information and documents submitted, all tenderers meeting the following criterion shall qualify in the bid:

i. They should meet the bid qualification criteria. Refer clause 2 of this Annexure.

ii. They should accept the Techno-commercial bid in entirety as explained in clause 15 above.

iii. They should accept all the technical specifications and agree to manufacture SC Valves as per enclosed drawings

iv. They should have submitted the Integrity Pact duly signed and witnessed.

v. They should have submitted the EMD or should have uploaded a TPIA certified copy of valid NSIC Registration Certificate/ Review certificate or a TPIA certified copy of all the pages of the EM-II certificate issued by any authority mentioned in the Public Procurement policy of MSEs-2012 or self-attested copy of Udyog Aadhaar Memorandum (UAM) [if and as applicable]

vi. In case MSEs is owned by SC/ST entrepreneurs then submit caste certificate issued by appropriate government authority and also CA certificate declaring the percentage of shareholding of SC/ST entrepreneur(s) and share value as per the below format –

Sl.no. Name of owner(s)

General/SC/ST Share holding (%) Share value in INR

vii. In case MSEs is owned by Women entrepreneurs then submit CA certificate declaring the percentage of shareholding of Women entrepreneur(s) and share value as per the below format.



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Sl.no. Name of owner(s)

Gender (Male / Female)

Share holding (%) Share value in INR

viii. BPCL should have received the EMD (if applicable) for existing category bidder and EMD (if applicable) and SD cum PBG for upcoming new bidder, submitted by them.

ix. They should not be serving any Holiday Listing orders issued by BPCL or MOP&NG debarring them from carrying on business dealings with BPCL/MOP&NG or serving a banning order by another Oil PSE for a period that is not over as on the initial due date of this tender. Declaration to this effect to be submitted by the bidder.

All the documents as mentioned above in (i), (v), (vi) and (vii) should be duly verified and certified by TPIA who are registered under “NABCB accredited bodies as per requirement of ISO/IEC17020 as Type A” in QCI NABCB website (link to the website is as follows - nabcb.qci.org.in/accreditation/reg_bod_inspection_bodies.php) as on date of verification of documents. The verification and certification should include Name and contact details (contact number and e-mail ID) of the certifying officer, TPIA name with the address of TPIA branch undertaking the certification. All charges of the Third party for attestations and verification shall be borne by the Bidders.

Price bid of only those tenderers shall be opened who qualify in the Techno-commercial bid.

b) Price Bid

i. Through this tender, BPCL seeks to surface the lowest price supplier for each state. Hence, price bid evaluation shall be done at the level of individual state.

ii. The order allotment will be finalized by BPCL by taking into account the following:

Quoted basic price

Other cash outflows that shall include GST and freight for a particular tenderer for each state

Input Tax Credit (ITC) available, if any

Quantity Offered by the tenderer



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iii. BPCL shall calculate the net delivered price (NDP) per SC Valve for each state for each tenderer by adding:

GST (Goods and Service Tax) incl. all cesses, surcharges etc. as applicable and declared by the tenderer

Freight quoted per SC Valve

to the basic price per SC Valve quoted by the tenderer. Thus NDP would be determined using the following formula:

NDP = (quoted basic price per SC Valve + Freight) * (1+GST [in %]/100)

“Net cost to BPCL” (equal to net delivered price [NDP] as calculated above less input tax credit [ITC]) shall form the basis for selection of tenderers for placement of order and initial order allotment.

Net cost to BPCL = NDP - ITC

ITC or Input Tax Credit is credit available to BPCL against GST charged by the vendor. For the purpose of tender evaluation, the Net Cost to BPCL calculated as above shall be rounded off to two-places of decimal (i.e. nearest paise) using Microsoft Excel software.

iv. Based on the “net cost to BPCL” calculated as above, BPCL shall place orders on one or more tenderers whose offer is considered acceptable to BPCL.

An illustration is as under:

Let us assume that for a particular state the bidder quotes the following -

Basic price = Rs.89/- per SC VALVE

Freight from vendor’s unit to XYZ plant = Rs.2/- per SC VALVE GST = 18% and ITC = 18%

Then,

NDP = (89 + 2) * (1+ 18/100) = Rs.107.38 per SC VALVE

Thus Rs. 107.38 per SC Valve shall be payable to the vendor

Now, ITC available to BPCL = (89+2) * 18/100 = Rs.16.38 “net cost to BPCL” = NDP - ITC

= Rs.107.38– Rs.16.38=Rs.91.00 per SC VALVE



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For the purpose of evaluation this quote shall be considered as Rs. 91 per SC VALVE.

v. Ranking of tenderers will be based on “net cost to BPCL” calculated as per the original quotation. Order distribution will be done such that there are minimum two vendors for each state. The ratio of order distribution among L1:L2 will be on 80:20 basis, subject to the availability of quantity offered by the lowest quoted vendor.

vi. In the event that same rate is quoted by 2 or more tenderers for any state and even if they are acceptable to BPCL, BPCL is not bound to either accept all such offers or to equally distribute the state’s requirement for SC Valves amongst the tenderers who have quoted the same rate.

vii. Orders on units who qualify in the bid but have not supplied SC Valves to

OMCs so far or in the last two years (ending on the date of floating the tender), shall be placed only after BPCL ascertains their capability. In case the manufacturing/ Inspection facilities set-up by such tenderers are found satisfactory by BPCL, a trial order for minimum 5000 numbers SC Valves (or allotted contract quantity, whichever is lower) will be placed. On satisfactory execution of the trial order which is cleared during the pre-delivery inspection by the BPCL technical team, BPCL shall consider placement of regular orders based on allotment.

viii. BPC reserves the right to negotiate with tenderers and counter offer a rate

if required. The contracts shall be finalized at the valid quoted rates that shall change in line with clause 4 of Annexure VI (Price).

ix. In the event the tenderer who has offered the best rates, fails to supply the SC Valves, BPCL may place orders with the next best tenderers, if considered necessary.

x. In the event it becomes necessary for the Corporation to procure SC Valves at different rates, then the Corporation reserves the right to make order allotment in such a way so as to enable the Corporation to get the maximum advantage.

xi. The Corporation reserves the right to reject any and/or every tender without assigning any reason whatsoever and/or place order on one or more tenderers and/ or carry out negotiations with any tenderer in the manner considered appropriate by the Corporation. Corporation also reserves the right to reject any un-workable offer.

xii. Corporation also reserves its right to allow Micro and Small Enterprises (MSEs) and MSEs owned by Scheduled Caste (SC) or the Scheduled tribe (ST) entrepreneurs or MSE owned by Women, purchase preference as



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admissible/applicable from time to time under the existing Govt. policy. Purchase preference to a MSE and a MSE owned by SC/ST entrepreneurs shall be decided based on the price quoted by the said MSEs as compared to L1 Vendor at the time of evaluation of the price bid.

Bidders claiming purchase preference as MSE need to submit the documents:

a) TPIA certified copy of all the pages of the EM-II certificate issued by any authority mentioned in the Public procurement policy of MSEs-2012 or a TPIA certified copy of Udyog Aadhaar Memorandum (UAM).

b) Bidder’s declaration on a duly notarized Rs.100 stamp paper stating that, in the event of award of contract, all the ordered supplies shall be made from the premises for which MSE certificate has been submitted.

21. Tenderers may have to attend the concerned office of the Corporation for clarifications and/or pre-bid meeting and/or negotiations/clarifications if required at their own cost, in respect of their bids without any commitment from the Corporation.

22. POLICY ON HOLIDAY LISTING The guidelines and procedures for Holiday Listing are available separately in BPCL website and shall be applicable in the context of all tenders floated and consequently all orders/ contracts / purchase orders. It can be accessed using the following link: http://bharatpetroleum.in/pdf/holidaylistingpolicyfinal.pdf

23. ANTI –COMPETITIVE AGREEMENTS/ABUSE OF DOMINANT POSITION:

The Competition Act, 2002 as amended by the Competition (Amendment) Act, 2007 (the Act), prohibits anti-competitive practices and aims at fostering competition and at protecting Indian markets against anti- competitive practices by enterprises. The Act prohibits anti-competitive agreements, abuse of dominant position by enterprises, and regulates combinations (consisting of acquisition, acquiring of control and M&A) wherever such agreements, abuse or combination causes, or is likely to cause, appreciable adverse effect on competition in markets in India. Bedsides taking punitive action as enshrined under Integrity Pact, BPCL reserves the right to approach the Competition Commission established under the Act of Parliament and file information relating to anti-competitive agreements and abuse of dominant position. If such a situation arises, then tenderers shall be bound by the provisions of the said statute.

24. It shall be understood that every endeavour has been made to avoid errors which can materially affect the basis of the tender and the successful tenderer

http://bharatpetroleum.in/pdf/holidaylistingpolicyfinal.pdf



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shall take upon himself and provide for risk of any error which may subsequently be discovered and shall make no subsequent claim on account thereof.

25. Courts in the city of Mumbai alone shall have jurisdiction to entertain any application or other proceedings in respect of anything arising under this tender either before or after or during finalisation of the tender.

26. State-wise estimated requirement of SC Valves is given below. However, it is liable to change depending on actual demand in the state.

Sl.No. States/ Union Territory Requirement

1 Andhra Pradesh 31267

2 Assam 7147

3 Bihar 67001

4 Chattishgarh 37520

5 Goa 4914

6 Gujarat 74817

7 Haryana 138468

8 J&K UT 2792

9 Karnataka 33724

10 Kerala 46901

11 Maharashtra 391953

12 Madhya Pradesh 37967

13 Orissa 24120

14 Punjab 86654

15 Rajasthan 61194

16 Telangana 37967

17 Tamil Nadu 106196

18 Uttar Pradesh 179339

19 Uttrakhand 22334

20 West Bengal 90225

Total 1482500

27. List of abbreviations used :

The terms “BPC”, “BPCL”, The Corporation, the Company and Owner in the appropriate context means Bharat Petroleum Corporation Limited, the Company registered under Companies Act 1956 and includes its successors and assignees.

The term “RATE CONTRACT” means the agreement for supply of goods/ materials between Owner and successful tenderer, for a fixed period of time (i.e till validity of Rate Contract, with no commitment of contractual quantity) on



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mutually agreed terms and conditions. The actual supply of goods/ materials shall take place only on issue of separate purchase orders for required quantity as and when required by Owner.

The term “PESO” in the appropriate context means Petroleum and Explosive Safety Organisation.

The term “BIS” in the appropriate context means Bureau of Indian Standards.

The term “OITC” in the appropriate context means Oil Industry Technical Committee.

The term “OMC” in the appropriate context means PSU Oil Marketing Companies viz. M/s Indian Oil Corpn. Ltd, M/s Bharat Petroleum Corpn. Ltd. and M/s Hindustan Petroleum Corpn. Ltd.

The term “SC Valve” in the appropriate context means Self-closing Valve

The term “UT” in the appropriate context means Union Territory

The term “PSU” / “PSU Oil Company” in the appropriate context means Public Sector Undertaking Oil Marketing Companies

The term “LoI” in the appropriate context means Letter of Intent

The term “LoA” in the appropriate context means Letter of Acceptance

The term “PO” in the appropriate context means Purchase Order

The term “PR” in the appropriate context means Price Reduction

The terms “NDP” in the appropriate context means Net Delivered Price

The term “VAT” in the appropriate context means Value Added Tax

The term “ITC” in the appropriate context means Input Tax Credit

The term “BPEC” in the appropriate context means BPCL’s Business Process Excellence Centre located at Kharghar, Navi Mumbai



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28. Proforma of the price bid form is as follows:

A. Quantity Offered and Basic Price and GST:

S. No.

Short Description

Long description Data

1 Quantity Offered (nos.)

This shall be the maximum quantity of the tendered material the tenderer shall be able to manufacture & supply during the contract period to BPCL, of the specifications and on the terms mentioned in the tender document. The tenderer shall have to offer minimum quantity of 50,000. BPCL shall have the right to verify the offered manufacturing capacity at any time during the currency of the tender/ orders and amend the order quantity suitably. Any and all financial risk, cost and penalties on account of this would be borne by the tenderer.

To be quoted by

the tenderer

2 Minimum quantity to be offered

The tenderer shall have to offer minimum quantity of 50,000 nos.

3 Incremental quantity

Quantity offered over and above the minimum quantity should be in multiples of

10,000 nos.

4 Contract Period Contracts shall be valid for 3 months

5 Basic price per unit of material (Rs.)

It is to be quoted in Rs. per unit of material and shall include all applicable duties, taxes (except GST), transit insurance (if tenderer desires so), loading/unloading charges and any other incidental charges and such other duties and levies as may be imposed for sale and delivery of the tendered material. Only GST as applicable and declared by the tenderer, freight as quoted shall be payable over and above this amount.

To be quoted by

the tenderer

6 Base date for price calculations

The afore-mentioned rate shall be suitably escalated/de-escalated as per tender conditions. The basic price should be quoted based on the raw material rates, taxes and duties prevailing as on

01-11-2019

7 GST payable on the material (%)

It is to be quoted in % and shall also include any cess, surcharge etc. payable on GST

To be quoted by

the tenderer



_________________________________________________________

Page 15 of 17

B. Rate of freight: This shall consist of Rs. per SC Valve freight rates from the manufacturing unit premises to all the plants in each State. Please put Freight as zero for states in which you are not interested in supplying the material:

Sl.No. States/ Union Territory Freight (in Rs. Per SC valve)

1 Andhra Pradesh

2 Assam

3 Bihar

4 Chattishgarh

5 Goa

6 Gujarat

7 Haryana

8 J&K UT

9 Karnataka

10 Kerala

11 Maharashtra

12 Madhya Pradesh

13 Orissa

14 Punjab

15 Rajasthan

16 Telangana

17 Tamil Nadu

18 Uttar Pradesh

19 Uttarakhand

20 West Bengal



_________________________________________________________

Page 16 of 17

PROFORMA OF BANK GUARANTEE

(On non-judicial paper of appropriate value)

FOR EARNEST MONEY / SECURITY DEPOSIT TOWARDS PERFORMANCE

To

Bharat Petroleum Corporation Ltd.

Dear Sirs,

M/s. ________________________________________________have taken tender for the

work______________________CRFQNo/PONo__________________________________

______ for Bharat Petroleum Corporation Ltd.

The tender Conditions of Contract provide that the Contractor shall pay a sum of

Rs._____________________________________________________

(Rupees___________________________________________) as earnest money/security

deposit in the form therein mentioned. The form of payment of earnest money/security

deposit includes guarantee executed by Scheduled Bank, undertaking full responsibility to

indemnify Bharat Petroleum Corporation Ltd. in case of default. The said_________________________________________ have approached us and at their request and in consideration of the premises we_______________________________________________having our office at ___________________have agreed to give such guarantee as hereinafter mentioned.

1. We_______________________________________________________________ hereby undertake and agree with you that if default shall be made by M/s. _____________________________________ in performing any of the terms and conditions of the tender or in payment of any money payable to Bharat Petroleum Corporation Ltd., we shall on demand pay to you in such matter as to you may direct the said amount of Rupees _______________________________only or such 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 effecting this guarantee postpones for any time or from time to time the exercise of any of the powers and rights conferred on you under the contract with the said ______________and to enforce or to for bear from endorsing any power of rights or by reason of time being given to the said which under law relating to the sureties would but for provision have the effect of releasing us.

3. Your right to recover the said sum of

Rs.__________________(Rupees__________________ ____________________) from us in manner aforesaid will not be affected or suspended by reason of the fact that any dispute or disputes have been raised by the said M/s.__________________ _________________and/or that any dispute or disputes are pending before any officer, tribunal or court.



_________________________________________________________

Page 17 of 17

4. The guarantee herein contained shall not be determined or affected by the liquidation or

winding up, dissolution or change of constitution or insolvency of the said______________ ____________________but shall in all respects and for all purposes be binding operative units payment of all money due to you in respect of such liabilities is paid.

5. Our liability under this guarantee is restricted to

Rupees__________________________________. Our guarantees shall remain in force until_____________________________________________ unless a suit or action to enforce a claim under_________________________________________ Guarantee is filed against us within six months from _____________________________(which is date of expiry of guarantee) all our rights under the said guarantee shall be forfeited and shall be relieved and discharged from all liabilities thereunder.

6. We have power to issue this guarantee in your favour under Memorandum and Articles of

Association 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 authorized to sign on behalf of the bank.

CRFQ No.: 1000342012 Annexure II

General Instructions to vendors for e-Tendering

Page 1 of 3

General Instructions to vendors for e-tendering

1. Interested parties may download the tender from BPCL website

(http://www.bharatpetroleum.in) or the CPP portal (http://eprocure.gov.in) or from the e-tendering website (https://bpcleproc.in) and participate in the tender as per the instructions given therein, on or before the due date of the tender. The tender available on the BPCL website and the CPP portal can be downloaded for reading purpose only. For participation in the tender, please fill up the tender online on the e-tender system available on https://bpcleproc.in.

2. For registration on the e-tender site https://bpcleproc.in, one can be guided by the “Instructions to Vendors” available under the download section of the homepage of the website. As the first step, bidder shall have to click the “Register” link and fill in the requisite information in the “Bidder Registration Form”. Kindly remember your e-mail id (which will also act as the login ID) and the password entered therein. Once you complete this process correctly, you shall get a system generated mail. Thereafter, login in to the portal using your credentials. When you log in for the first time, system will ask you to add your Digital Signature. Once you have added the Digital Signature, please inform the vendor administrator @ [email protected] with a copy to [email protected] for approval. Once approved, bidders can login in to the system as and when required.

3. As a pre-requisite for participation in the tender, vendors are required to obtain

a valid Digital Certificate of Class IIB and above (having both signing and encryption certificates) as per Indian IT Act from the licensed Certifying Authorities operating under the Root Certifying Authority of India (RCIA), Controller of Certifying Authorities (CCA). The cost of obtaining the digital certificate shall be borne by the vendor. In case any vendor so desires, he/she may contact our e-procurement service provider M/s. E-Procurement Technologies Ltd., Ahmedabad (Contact no. Tel: +91 079- 68136861/849/871) for obtaining the digital signature certificate.

4. Corrigendum/amendment, if any, shall be notified on the site https://bpcleproc.in. In case any corrigendum/amendment is issued after the submission of the bid, then such vendors who have submitted their bids, shall be intimated about the corrigendum/amendment by a system-generated email. It shall be assumed that the information contained therein has been taken into account by the vendor. They have the choice of making changes in their bid before the due date and time.

http://www.bharatpetroleum.in/

http://eprocure.gov.in/









Page 2 of 3

5. Price bid of only those vendors shall be opened whose Techno-Commercial bid is found to be acceptable to us. The schedule for opening the price bid shall be advised separately.

6. Directions for submitting online offers, electronically, against e-procurement

tenders directly through internet:

(i) Vendors are advised to log on to the website (https://bpcleproc.in) and arrange to register themselves at the earliest.

(ii) The system time (IST) that will be displayed on e-Procurement web page

shall be the time considered for determining the expiry of due date and time of the tender and no other time shall be taken into cognizance.

(iii) Vendors are advised in their own interest to ensure that their bids are

submitted in e-Procurement system well before the closing date and time of bid.

(iv) If the vendor intends to change/revise the bid already submitted, they shall

have to withdraw their bid already submitted, change / revise the bid and submit once again. However, if the vendor is not able to complete the submission of the changed/revised bid within due date & time, the system would consider it as no bid has been received from the vendor against the tender and consequently the vendor will be out of contention. The process of change / revise may do so any number of times till the due date and time of submission deadline. However, no bid can be modified after the deadline for submission of bids.

(v) Once the entire process of submission of online bid is complete, they will

get an auto mail from the system stating you have successfully submitted your bid in the following tender with tender details.

(vi) Bids / Offers shall not be permitted in e-procurement system after the due

date / time of tender. Hence, no bid can be submitted after the due date and time of submission has elapsed.

(vii) No manual bids/offers along with electronic bids/offers shall be permitted.

7. For tenders whose estimated procurement value is more than Rs. 10 lakhs, vendors can see the rates quoted by all the participating bidders once the price bids are opened. For this purpose, vendors shall have to log in to the portal under their user ID and password, click on the “dash board” link against that tender and choose the “Results” tab.




Page 3 of 3

8. No responsibility will be taken by BPCL and/or the e-procurement service provider for any delay due to connectivity and availability of website. They shall not have any liability to vendors for any interruption or delay in access to the site irrespective of the cause. It is advisable that vendors who are not well conversant with e-tendering procedures, start filling up the tenders much before the due date /time so that there is sufficient time available with him/her to acquaint with all the steps and seek help if they so require. Even for those who are conversant with this type of e-tendering, it is suggested to complete all the activities ahead of time. It should be noted that the individual bid becomes viewable only after the opening of the bid on/after the due date and time. Please be reassured that your bid will be viewable only to you and nobody else till the due date/ time of the tender opening. The non availability of viewing before due date and time is true for e-tendering service provider as well as BPCL officials.

9. BPCL and/or the e-procurement service provider shall not be responsible for any direct or indirect loss or damages and or consequential damages, arising out of the bidding process including but not limited to systems problems, inability to use the system, loss of electronic information etc. In case of any clarification pertaining to e-procurement process, the vendor may contact the following agencies / personnel:

1. For system related issues : a. M/s. E-Procurement Technologies Ltd at contact no. Tel: +91 079-

68136861/849/871/0120-2474951/033-24293447 followed with an e-mail to id [email protected]

b. Procurement Manager of M/s. BPCL at contact no. +91-22-24176572 followed with an e-mail to ID [email protected]

2. For tender related queries: a. Mr. Mumtaz Karim of BPCL at contact no. +91-22-24176572/

24176423 followed with an email to ID [email protected]

b. Mr. Amit Kumar of BPCL at contact no. +91-22-24176417 followed with an email to ID [email protected]

The responsible person of the tender is Mr. Amit Kumar of BPCL at contact no. +91-22-24176417.




TENDER NO:1000342012 ANNEUXURE-IV TECHNICAL SPECIFICATIONS

Page 1 of 6

TECHNICAL SPECIFICATIONS OF SELF CLOSING TYPE VALVES FOR LPG CYLINDERS

A. Specifications 1. Self Closing Type Valves For LPG Cylinder: LPG Cylinder Valves, 25.6 mm Self Closing Type with Vertical outlet and incorporating vertical spring actuated spindle as detailed in Appendix - 4 (Page 6 of IOC" Implementation Report " dated March,1985. Valves inlet and outlet confirming to Kosan Teknova Drawing No.186N502 dated 23.1.1985 (Revision K) and valve outlet fitted with "Joint Packing" as per Drawing No. 24226-C dated 31.05.2016(High Quality O-ring) attached herewith. Valves should conform to Bureau of Indian Standards Specifications IS: 8737 (Latest Revision) and duly inspected and certified / marked by BIS. The material of the valve housing (Valve body) shall comply with the physical & chemical properties of Brass as per IS: 8737 (latest) and the same shall be mandatory. The dimensional details as well as materials of construction for all other components of all the valves supplied would be in conformity with the Kosan Teknova Drawings specified above and maintenance of “Inspection and Quality Assurance Formats". Marking on the Valves shall be as per Drawing No. VALVE A1 Dated :12.03.2003 attached herewith. Post forging & Trimming, shot blasting must be employed using SS shots/cut wire or other suitable blasting media in place of Pickling / Cromatisation. The process must be tuned so as to give a glossy surface finish and clean surface for clearly legible marking & stamping.

2. Plastic Thread Protector Cap: This cap shall be without markings and dimensions as per drawing (Page 16 Appendix 4 (X) of “Implementation Report").

3. Safety Cap: (a) Safety Caps shall be of " DUPONT DELRIN 500 P/900P/1700P, CELCON M-90 / M-140 OR

TENAC-5010 (all virgin materials) suitable for fixing at the outlet of Self Closing Compact Valve (25.6 mm dia) as per our drawing no: LPG:D:DELRIN CAP Rev 1 dt. 03.12.2014 with Stainless steel spring clip and soft twin Poly propylene (PP) multi fibre chord of adequate strength. Material for safety caps should be of Virgin Material.

To be purchased from OITC approved vendors (Latest Revised List mentioned at the end of this Annexure). (b) Safety Cap for Self Closing compact Valve for LPG Cylinder complete with spring and soft

twin nylon chords with knot fused to ensure that it does not get opened under any circumstances. Safety Caps should satisfy the entire requirement including material Specifications given in the said Drawing.


Page 2 of 6

(i) Safety Caps shall be moulded using Automatic Injection moulding machines only and not by semi automatic / hand moulding machines. Above requirements to be informed to your respective cap vendors.

(ii) If it is deemed necessary the samples of Cap Assembly and or Delrin as well as spring material used would be tested by us in a laboratory of our choice and the results so obtained would be final and binding on you.

4. Joint Packing (High Quality O-RingRing) shall be procured To be purchased from OITC approved vendors ( Latest Revised List)

HIGH QUALITY O-RING: SC Valves shall be fitted with High quality O rings. The SC Valve manufacturers shall procure High Quality O rings from OITC Approved vendors only. Cylinder manufacturer should procure SC valves fitted with High Quality O-ring only. List of OITC approved vendors for supply of High quality O rings as on tender date attached. Also as and when new vendors are enlisted in the OITC approved list same will be intimated to all cylinder Vendors and Valve vendors. Cylinder vendors while procuring SC valves should ensure quality certificate and Invoice of the High quality O-ring fitted in the valves and same shall be kept for record and should be available for inspection by OITC/OMC officials. Vendor also has to attach the copy of quality certificate and Invoice of the High quality O-ring along with every cylinder consignment.

OITC approved vendors for supply of High quality O rings for SC Valves.

Sr No.

Name of the Vendor Contact Details Identificati

on Mark

1 M/s TVS Argomm Private Ltd Aritapatti Road, Narasingampatti, Therkutheru Post, Melur Taluk, Madurai - 625 122, Tamil Nadu

Mr A.V.Ravi Mobile :09944022233/9500919031 Email: [email protected]

TVS

2 M/s Vajra Rubber Products (P) Ltd, PynGode, Konathukunnu (PO), Thrissur Dist. Kerala - 680123

Mr John Rajni / Prashant Mobile : +91 7012335166/9447798727 [email protected]

VR

3 M/s Standard Elastomers 289-A , KIADB Industrial Area, Phase II Harohalli village, Kanakapura taluk Dist: Ramanagara ,Karnataka Pin 562112

Mr G .S .Kaushik [email protected] 09035898291

SE





Page 3 of 6

B. Terms & Conditions for Transfer of Kosan Teknova Technology 1. Transfer Of Technology : Technology transfer shall be offered to new successful tenderers. The transfer is subject to a non refundable ‘Technology Transfer Fee’ of Rs 10 lacs and execution of a ‘Know-how & Technical Assistance Agreement’ with M/s. Indian Oil Corporation Limited by the prospective manufacturer. Payment of Technology Transfer fees shall be applicable to all successful new tenderers irrespective of their being NSIC units or Public Sector Enterprises.

2. Implementation Of Technology : The successful new tenderers will be required to implement the technology in all respect within 90 days from the date of advice by BPCL/IOCL and shall be required to establish necessary manufacturing / Inspection facilities to the satisfaction of BPCL/IOCL, failing which, necessary action may be initiated to cancel their enlistment and tender submitted shall be deemed to be null and void. EMD as well as the Technology Transfer Fee in such case will be forfeited.

3. Changes In Technology : Any changes, which may be incorporated in the technology by IOCL/BPCL from time to time, shall be deemed as being part of the technology and binding on the successful tenderers.

4. Use Of Technology: IOCL/BPCL reserve the right to bar any tenderer who has obtained technology transfer, from the use of technology at its discretion and any subsequent use of the same by the tenderer shall be treated as unauthorised and illegal.

OITC approved vendors for the Supply of Safety Caps

SR. NO.

LIST OF APPROVED SAFETY CAP MANUFACTURERS

CONTACT DETAILS IDENTIFICATION MARK

1 M/s Adinath Industries

C-9/2, DLF City, Phase I, C-9/2, DLF City Phase-I, Sukhchain Marg, Gurgaon, Haryana-122002

Mr. Gautam Jain 9811154680

Mr. Gaurav Jain 9810060890

Mr. Umesh Pandey 9871578866

[email protected];

AD

2 M/s Cris Cap Safety Equipments A-4, Sheel Apartments, Plot 598/99, 16th Road, Bandra (W), Mumbai – 400 050.

Mr. Kumar Bijlani (7738528099; 9821081683) [email protected];

CCSE



Page 4 of 6

3 M/s India Plastic Industries Near Saraon , Opp New Sharda Mill, MIDC Manpada Road

Dombivali (E) - 421 201

Distt : Thane

Mr. S.S. Patil -9892457783

[email protected];

IPI

4 M/s Indo Plast Industries, W-189, M.I.D.C., Phase II Dombivli (East) - 421 204

Distt : Thane (M.S.)

Mr. Prashant Patil - 09892692331

[email protected];

INDO P.

5 M/s Jagdamba Engineering Pvt Ltd. D 165 7 166, Phase III, IDA Jeedimetla, RR Distt (A.P)–500 055.

Mr. Janki Ram / Mr. Ashwin 9849027815

[email protected];

JAG

6 M/s Nirmal Plastics Industries

Unit no. 116, A to Z Industrial Estate, Ganpatrao Kadam Marg

Lower Parel, Mumbai – 400 013.

Mr. Mahendra Patni (9821242260) [email protected];

NP

7 M/s N.G. Trexim Pvt Ltd 29-B, Ravindra Sarani Room No. 1 E, 3rd Floor, Kolkata – 700073.

Mr. Jitendra Jha [09433014957] Mr. Naresh Kothari [9831028003] G.D. Kothari, Director

[email protected]; [email protected]

NG

8 M/s Parasnath Enterprises

31, Rajendra Park, Pusa Road, New Delhi – 110 060

Ms. Anita Wadhwa -9560394909 Mr. Siddhartha Jain - 9810060887

[email protected]

PN

9 M/s Reliable Enterprises 56, Rajaji Industrial Estate, Gr. Floor , P.K. Road, Mulund (W), Mumbai – 400 080.

Mr. N.S. Vaid - 9821213908

[email protected]

RE

10 M/s Reliable Engineers Unit No. 23, Ashok Industrial Estate, L.B.S. Marg, Mulund (W) Mumbai 400 080.

Mr. S.S. Bhalla – 9870003908

[email protected]; REN

11 M/s Reliable Plastics

52, Raja Industrial Estate, Off PK Road, Mulund (W) Mumbai – 400 080

Mrs. Shyamli Sood- 9820899481

[email protected]

RP

12 M/s Sneha Plastics Plot No. 184 & 185, S.V.C.I.E., Jeedimetla Hyderabad – 500 055.

Mr. Shivkant Dalmia (09391017811) [email protected];

SP








Page 5 of 6

13 M/s Super Plastic Industries

Gala No 2, Mhatre Pada, Opp. W-118, MIDC Phase II, Near Technocraft Co., Sonarpada, Dombivali (E) – 421 204.

Mr. Rajendra S. Patil -9821478420 [email protected]

SPI

14 M/s Unison Auto Industries Plot No. D-15, Phase II, MIDC Industrial Area , Dombivali (E) – 421 203. Distt : Thane

Mr. Gulab Jham : 09820024648

Sangita Patil - 9773203267

[email protected]

[email protected]

UAI

15 M/s Techno Industries, AE-456, Salt Lake City , Kolkata – 700064

Mr. R. Biswas : 09903057502

[email protected]; TI

16 M/s Techno Impex

Helabhattala, Hatiara Road, Opp. Sagar Gramin Bank, Kolkata – 700 059

Mr. T. Biswas: 9433033026

[email protected]

TIM

17 M/s Nirmal Products

C-704, Raheja Sherwood, Western Express Highway, Behind “The Hub” Mall, Goregaon (East), Mumbai – 400 063

Mr. Siddharth M. Patni – Mobile : 9820444731


NPR

18 M/s P.R. Plasto B-1-15, Ram Girdhar Industrial Estate, Vithalwadi Station Road, Opp. Reliance Petrol Pump, Ulhasnagar, Thane 21003.

Contact Person: Mr. Pawan Kharat

Mobile. No.: 8805958010

Email ID: [email protected]

PRP

19 M/s Prasad Plastics

U-83, MIDC Area, Hingna Road, Nagpur – 440016

Contact Person : Manoj Prasad, Proprietor

Mobile – 9823280591, Email- [email protected]

PP

20 M/s Shivam Polymers

Plot No. 3, Assoti Piyala Road, Balabgarh, Faridabad Haryana – 121004

Contact Person : Mr. Ajit Dalal Mobile – 9643854148


SPS

21 M/s K.P. Abrasives (P) Ltd

KPI Building, Street No.8, Sarurpur Industrial Area,Sohna Road, Faridabad Haryana – 121005

Contact Person : Mr. Akhil Saraswat

Mobile – 9810413499


KP

22 Vivek Plastics

No. 113, New Unique Industrial Estate Dr RP Road, Mulund (West) Mumbai 400080

Contact Person : Mr Anil 7303461856

Email: [email protected]

VP








Page 6 of 6

23 M/s Paras Plastic , Gala No 9-15

Pooja Industrial estate Near Golani Naka, Waliv

Vasai(E), Thane -401208

Contact Person :Paras Shah

Mobile :09820073698

[email protected]

PP

24 M/s Plasto India

B-222, Sector 4

DSIIDC, Bawana, Delhi- 110036

Contact person: Neeraj Kakkar [email protected]

8800296369 , 9871908710

PI

25 M/s Robin Impex Pvt Ltd, RZ 34, Saibaba Enclave, Tehsil Road, Najafgarge, New Delhi.

Mr. Satendra Rana 8130892134

[email protected]

RI

26 M/s Right Vision Pvt. Ltd. A-4/4, Sector 80, Phase-II, Noida- 201305

Contact Person: BP Bharti 9810526627

[email protected]

RIPL

27 M/s K.R. Techno Plast 91/1, Sikhara Road, Industrial Area Modi Nagar, Ghaziabad-201204

Contact Person: Pramod Kumar

9310836933

[email protected]

KR

28 Maksa Industries Plot no. 30-A1, Sector-II, SIDCUL, Haridwar, UK

Contact Person: Mr. Kuldeep Singh

9897998237

[email protected]

MI

29 Swastik Plastics Plot no. BL-8A, Sector-13, GIDA, Gorakhpur U.P.

Contact person: Mr. Naveen Rungta

9415210340

[email protected]

SPK

30 Itech Plast India Pvt. Ltd. Plot no. 107/108, Shampara, Bhavnagar

Contact Person: Mr. Parag Shah

9099925052

[email protected]

ITP

31 Girraj Enterprises Vill-Piyala, P.O. Asaoti, Teh-Ballabgarh, Dist-Faridabad

Contact Person: Mr. Vipin Dalal 9717517131

[email protected]

GE

32 Tanot Polymers Pvt. Ltd. Vill- Piyala, Piyala-Dundsa road, Ballabgarh, Faridabad

Contact Person: Mr. Ajit Singh

9911260467

[email protected]

TPS

33 L.M. Enterprises Plot No. B-57, STICE, Musalgaon, Sinnar, Nashik-422103

Contact Person: Mr. Yuvraj Pardeshi 9075756464/ 9822514989

[email protected]

LME







CRFQ No. 1000342012 ANNEXURE VI

TERMS & CONDITIONS OF AGREEMENT

___________________________________________________________________________________

Page 1 of 24

TERMS & CONDITIONS OF AGREEMENT FOR PROCUREMENT OF SC VALVES

1. MATERIAL TO BE SUPPLIED (a) The successful tenderers on whom Contract/ Purchase Order is placed

shall duly supply SC Valves manufactured as per IS:8737 (latest revision) and BPCL drawing to the Corporation as per the rate and delivery schedule specified in the Contract/ Purchase Order placed by the Corporation on the successful tenderer.

(b) The successful tenderer shall ensure that the SC Valves meant for supply

to BPCL are manufactured following the quality control/inspection procedures prescribed by BIS & PESO and/or any written instructions given by BPCL.

(c) BPCL reserves the right to refuse accepting the delivery of SC Valves that

have been manufactured more than 4 months before the date of supply. (d) This is basically a rate contract and quantities are not guaranteed. The

contract placed on successful tenderers may be extended/repeated at sole discretion of BPCL for a further period of up to 3 months including increasing the contract quantity calculated on prorata basis on repeat order basis, at the same terms and conditions. The successful tenderer shall be bound to accept such a repeat order.

2. SUPPLY AND PERFORMANCE GUARANTEE

(a) The successful tenderer, within 10 days of placement of Letter of Acceptance shall agree to deposit an amount of Rs. 10 lakhs or 5% of the order value, whichever is lower, with BPCL for Supply and Performance Guarantee. This amount shall have to be deposited by way of crossed A/c Payee demand draft drawn on any Nationalised or scheduled bank in favour of M/s. Bharat Petroleum Corporation Ltd and payable at Mumbai. No interest is payable by BPCL on the amount for Supply and Performance Guarantee so collected. Those successful tenderers desiring to convert EMD (if submitted by way of DD) to Supply & Performance Guarantee can send a request letter for our consideration.

(b) Since contract shall be placed bidder-wise, Supply and Performance Guarantee shall have to be deposited for each S C Valve manufacturer separately.

(c) Supply and Performance Guarantee shall be refunded only after the expiry

of the guarantee period of the SC Valves supplied by the successful tenderer. BPCL shall be entitled to deduct from this amount any loss or damage which BPCL may be put to by reason of any act or defective SC Valves, Price Reduction (PR) or any other liabilities or default recoverable by BPCL from the successful tenderer and to call upon the successful



___________________________________________________________________________________

Page 2 of 24

tenderer to maintain the amount at the original level by making further deposits.

3. SET OFF Any sum of money due and payable to the successful tenderer (including the supply and performance guarantee amount returnable to him) under the Contract, may be appropriated by BPCL against any claim arising under the Contract against the successful tenderer. 4. PRICE

(a) The basic price payable per SC Valve in a particular month shall be calculated by adding escalation (or subtracting de-escalation, as the case may be) for that particular month to the quoted/negotiated basic price and shall include all applicable duties, taxes (barring GST), transit insurance (if Successful tenderer desires to do so), loading & unloading charges and any other incidental charges and such other duties and levies as may be imposed for sale and delivery of the said Valves. Only GST as applicable and declared by the successful tenderer and transportation charges quoted shall be payable extra.

(b) Price escalation/de-escalation in the basic price of SC Valve shall be based on the changes in the Basic price of High Grade Zinc at Tarapur (Mumbai) as declared by M/s. Hindustan Zinc Ltd., and basic price of Copper Cathode (Full) at Tarapur as declared by M/s Hindustan Copper Ltd. and determined as per the following formula:

For every one rupee increase or decrease or part thereof in the basic price of Copper Cathode and High Grade Zinc per kg at Mumbai, the unit basic price of the SC Valve will increase or decrease proportionately @ Rs. 0.13 (thirteen paisa) and @ Rs. 0.09 (nine paisa) respectively plus applicable GST on SC Valve @ GST rate applicable for raw material less GST rate on SC Valve actually payable by the successful tenderer in that particular month in case the latter is less than the former; otherwise zero.

For the purpose of calculating escalation/de-escalation, the difference in basic price of High Grade Zinc and Copper Cathode per kg at Mumbai as well as GST rate as applicable for raw material less GST rate on SC Valves actually payable by the successful tenderer as on 01/11/2019 and that prevailing on the first day of each qualifying month shall be considered.

(c) Price escalation/de-escalation shall be determined every month, based on the High Grade Zinc and Copper Cathode (Full) prices on Valves ruling as on the 1st day of the particular month.

(d) The above mentioned escalation/de-escalation formula takes into account the effect of changes in the price of high grade zinc and Copper Cathode



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Full on SC Valve. Escalation/ de-escalation on any other account will not be permitted.

5. TAXES AND DUTIES:

Taxes, duties and freight shall be payable over and above the basic price as follows:

5.1. Goods and Services Tax (GST):

All Vendors shall have GST registration in the concerned State from where he intends to supply the goods. Vendor shall declare the source location of supply and shall provide their GSTN number in the quotation.

Vendor shall provide HSN code of the goods and corresponding GST rate for the same.

GST as applicable by the Vendor at the time of delivery within scheduled delivery period will be payable by BPCL.

Vendor shall submit the TAX Invoice, for BPCL to claim the Input Tax Credit of the GST paid by the Vendor, wherever applicable. The Vendor shall take steps viz uploading invoice in GSTR 1, payment of the tax liability on the said invoices and filing of Returns etc. and comply with all the requirements of applicable laws including GST laws for the time being in force, to enable the OWNER to avail tax credit/s including input tax credit. Any loss or non-availability of input tax credit by the OWNER due to non-compliance of applicable tax laws including but not limited to GST laws in force or otherwise, on the part of VENDOR, an amount equivalent to any tax liability accruing to the OWNER and/or to the extent of any loss accrued to the OWNER shall be deducted from the payment due to the VENDOR or shall be reimbursed by the VENDOR, as the case may be, till such default is either rectified or made good by the VENDOR and the OWNER is satisfied that it is in a position to claim valid input tax credit within the time-lines as per applicable laws.

Any cost, liability, dues, penalty, fees, interest as the case may be, which accrues to the OWNER at any point of time on account of non-compliance of applicable tax laws or rules or regulations thereof or otherwise due to default on the part of VENDOR shall be borne by the VENDOR. An amount equivalent to such cost, liability, dues, penalty, fees, interest as the case may be, shall be reimbursed by the VENDOR within 30 days. Any GST as may be applicable on such recovery of amount shall also be borne by VENDOR and same shall be collected by the OWNER.

5.2. Freight :

Freight: Freight shall be payable after receipt of the Material(s) at the site as per the firm freight charges quoted by the successful tenderer in the price bid.



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5.3. New Statutory Levies:

All new statutory levies leviable on sale of finished goods to owner, if applicable are payable extra by BPCL against documentary proof.

5.4. Variation in Taxes/Duties:

Any increase/decrease in all the above mentioned statutory levies on the date of delivery during the scheduled delivery period on finished materials will be on BPCL's account. Any upward variation in statutory levies after contractual delivery date shall be to successful tenderer’s account.

Parties shall have to produce Gazette notification, proof showing that duty charged is totally on account of GST revision and not due to any change in assessable value or otherwise, and invoice us accordingly. Same principle will be observed for de-escalation also.

However, any increase in the rate of GST on SC Valves due to change in the annual Turn-over or full/partial withdrawal of GST, if any, to the successful tenderer shall not be reimbursed.

6. PAYMENT

The tax invoice/s along with following documents shall have to be submitted to BPEC Kharghar for payment -

a) a copy of Goods Receipt Note (GRN) issued by BPCL LPG Plant/s

b) Lorry Receipt

c) Packing List

d) BIS Test certificate for SC Valve

More than one invoice under a cover of consolidated / commercial tax invoice is not allowed.

Payment terms shall be 15-days which implies that payment shall be released by BPCL to vendors within 15 (fifteen) days, on ‘best-effort’ basis, after 15 days of receipt of invoice along with all enclosures as mentioned above, reaching BPEC in reasonable time. The payment shall be done through National electronic fund transfer (NEFT). However, in case the successful tenderer delivers a consignment that is fully/partially not accepted by the plant, then payment for such quantity that is not accepted by the plant shall be passed only after the defective lot is cleared to the satisfaction of the plant.



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7. QUALITY CONTROL / SUSPENSION

Please refer the attached Quality Discipline Guidelines (QDG) for various Quality related required compliances

(a) The successful tenderer is required to strictly adhere to the quality control/inspection procedures stipulated by Bureau of Indian Standards (BIS) and Petroleum and Explosive Safety Organization (PESO), and advice given by the Corporation and Oil Industry Technical Committee (OITC) from time to time.

Stage-wise inspection should be carried out as per scheme of testing of BIS. Manufacturer should employ manpower required at each stage of inspection such that they at least have minimum specified skills/qualifications.

The in-charge of quality control & production department and quality supervisors should possess minimum qualification of diploma in Engineering. Information should be promptly forwarded to BIS and PESO in case these key persons looking after critical aspects of production and quality control of LPG Cylinders are changed. Any change in the Plant & Machinery should be with prior approval of BIS and PESO.

(b) Without prejudice to the other provisions of the Contract, BPCL reserves the right to order suspension of production and supplies of the Cylinders by the successful tenderer in case any lapse in quality is detected by members of OITC or by officers/ representatives of BPCL, or if any lapse is reported by any statutory authority, quality complaint from any source, malpractice detected by any authority etc. at any time during the currency of the Agreement.

(c) Such suspension orders will be intimated in writing by email and/or Registered Post either by the Corporation or by OITC to successful tenderer. On receipt of suspension order, successful tenderer shall carry out detailed root-cause analysis for failure of the SC Valve /quality problem.

Corrective and preventive actions to be taken for a particular type of failure should be identified and implemented by the successful tenderer. The successful tenderer shall submit an action-taken report, duly verified by BIS, to BPCL. BPCL shall revoke the suspension based on the adequacy of this action-taken report (Please refer attached QDG for complete details).

The successful tenderer will be required to complete all actions necessary to obtain clearance from Corporation/OITC for resumption of production and dispatch at the earliest but not later than number of days as specified in the QDG, from the date of suspension.

If request for the clearance from Corporation/ OITC is not applied for within the said period as specified in the QDG, the Corporation shall have the



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rights solely at its discretion to cancel the remaining order quantity and forfeit the supply and performance guarantee amount without prejudice to any other right as may be available to the Corporation both under law and the contract terms contained in this agreement for the recovery of the damages.

(d) Despite the order of suspension, if the successful tenderer produces and/or dispatches any SC Valve, the Corporation shall be entitled to refuse taking delivery of such consignments and the successful tenderer shall not be entitled to claim any damage or compensation for any loss that may occur to him, from BPCL on account of refusal to accept such consignment. In such cases BPCL shall take necessary action which may be deemed fit against the successful tenderer.

(e) Whenever the successful tenderer is under suspension, the call-off/ allocation for the suspended party may be pruned to the extent of undelivered quantity against that call off/allocation at the sole discretion of BPCL. Extra cost, if any, borne by BPCL while procuring (from other suppliers) and/or placing such shortfall quantity to the short-supplied plant, as outlined above, shall be recovered from the defaulting successful tenderer as per clause 11 below.

(f) Ifthe successful tenderer is under suspension at the start of a month/time of placing call-off or PO, then the quantity calculated based on the fortnightly average order quantity (total order quantity/26) for the number of fortnight or part thereof for which the party continues to be under suspension, may be pruned at the sole discretion of BPCL. Extra cost, if any, borne by BPCL while procuring (from other suppliers) and/or placing such pruned quantity, as outlined above, to the designated plant shall be recovered from the defaulting vendor as per clause 11 below.

(g) If the successful tenderer is a common supplier for one or more OMCs, and in the event of their suspension by one OMC, then it shall be construed as suspension by BPCL also. However revocation will be done by individual OMC on Industry basis.

(h) As and when any changes in Quality Discipline Guidelines (QDG) duly approved by Oil Marketing Companies (OMCs), same shall come into force with immediate effect and shall be binding on all the bidders to whom LOIs/ LOAs/Purchase Orders are issued.

8. DELIVERY SCHEDULE / REVISION BEFORE EXPIRY OF DELIVERY SCHEDULE:

(a) Based on the actual requirements, BPC will be placing the call-offs (also called PO or allocations) from time to time. The successful tenderer shall be bound to accept call-offs up to 130% of the prorata quantity (prorata quantity = contract quantity/3). In case BPCL requires additional supplies (over and above the said 130% prorata level) during



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any period , then it can place call-offs for such additional quantities after getting a written confirmation from the successful tenderer.

(b) The successful Tenderer shall supply SC Valves strictly in accordance

with the delivery schedule mentioned in the call-offs/PO/ allocation. The successful Tenderer shall note that the date of receipt of SC Valves at the destination i.e. the Location of the Corporation as advised by the Corporation shall be considered as the date of completion of the supply as per the Order. In short the actual delivery shall mean the date of receipt of SC Valves at the location. Successful tenderer shall have to furnish a ‘Delivery Completion Report’ on monthly basis in the format given by BPCL along with a copy of proof of receipt of material/receipted delivery challans, for all supplies made during that month, by the 10th day of the succeeding month or by the 3rd working day after the extended period, in case of extension.

(c) In the event of the successful Tenderer anticipating difficulty to meet the

delivery schedule for reasons that the successful tenderer thinks are not attributable to him, he/she should submit a written request for extension, in case he desires the extension, explaining the reasons for the delay. It will be the Corporation’s sole discretion to accept or reject the request. The Corporation will evaluate the request of the successful Tenderer and in case the Corporation is satisfied, the Corporation may grant a suitable time extension with the applicable Price Reduction (on the portion that would be delivered late) @ 1/3% for each day of extension (or part thereof) subject to a maximum 5% and advise the revised delivery schedule, in writing. The decision of the Corporation in this regard will be final and binding on the successful Tenderer.

(d) Payment for delayed/late supplies shall be made at the rate on which call-

offs/PO/allocations have been issued and date of delivery shall be irrelevant for the purpose of deciding the rate of SC Valves. This shall also apply to cases where time extension for delivery has been granted by BPCL.

(e) Holiday listing of vendor shall be done as per the holiday listing policy.

9. FAILURE AGAINST DELIVERY SCHEDULE AND PRUNING & REALLOCATION FOR QUANTITIES UNDELIVERED:

(a) BPC shall review the supply position after completion of the Delivery Schedule. If the successful Tenderer fails to adhere to the said Delivery Schedule as per para 8(a) above or Revised Delivery Schedule which may be given as per 8(c) above, the following provisions shall apply:

(i) BPC may prune and reallocate the quantities short supplied by the

Successful Tenderers who could not meet the schedule given.



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(ii) Alternatively BPC may consider accepting late delivery of consignment, based on request by such Successful Tenderer who could not meet the schedule given. Payment in such event of non-supply of SC Valves within the stipulated period of one-month from the date of call-off/call-up, a price reduction @1/3% for each day of extension (or part thereof) subject to a maximum of 5% shall be applicable. For such delayed delivery, payment shall be made as per clause 8 (d) above.

(iii) In the event of delay beyond a month from the scheduled delivery

date, a penalty of 5% shall be charged on the entire undelivered quantity and such quantity shall be pruned and reallocated.

(iv) However if the successful tenderer informs the corporation about their inability to supply the material within 7 days of placing of call-off/PO then penalty of 2% shall be charged on the quantity surrendered. This surrendered quantity shall be pruned & reallocated and the defaulting vendor shall also be liable to pay the additional cost, if any, incurred by the Corporation to procure this quantity from an alternate source.

(v) Extra cost, if any, borne by BPCL while procuring (from other

suppliers) and/or placing such shortfall quantity to the short-supplied plant, as outlined in (i) & (iii) above, shall be recovered from the defaulting vendor as per clause 11 below.

(vi) Additional orders arising out of reallocation of pruned quantities shall be offered to performing bidders, provided they meet the following conditions:

i. They are performing satisfactorily under the current contract.

ii. They are willing to supply this additional quantity at the floor rate of the state(s) in which the quantities have to be supplied.

Pruned quantity in each state would be suitably allocated amongst one or more bidders who are ready to accept the offer for additional supplies, as above.

The reallocation of pruned quantities would be done by the corporation as and when required. For this purpose, the performing bidder would be the one who

a) Has supplied the entire called off quantity under the running contract OR The difference between his total contract quantity and the total cylinders actually delivered by that bidder and divided by the months left in the contract period, is less than the maximum supply made by the bidder in any month during the contract period.

b) Defaulting bidders against whom pruning is being done shall not be

considered for re-allocation.



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c) Pruned quantity on account of defaulting bidders shall not be

allocated to any of the other bidders having same PAN number (as that of the defaulting bidder).

Additional quantity allocated to bidders due to pruning and re-allocation or risk purchase and re-allocation is over and above the initial allocated quantity of the bidder (both existing and upcoming new bidder).

Performance till the month previous to the one in which the offer for additional quantity is being made, would be considered for determining this eligibility under (a) , (b) & (c).

BPCL decision in regard to Pruning & Reallocation on case to case basis and the methodology followed shall be final.

Pruned quantity in each state would be equally allocated amongst all the performing bidders who are ready to accept the offer for additional supplies at floor rate, as above, subject to condition explained below.

However, in case the additional order per bidder calculated as above, becomes an unviable quantity (i.e. less than 10000 SC Valves per bidder) then total requirement for that state/plant would be distributed amongst lesser number of bidders such that minimum order on a bidder is 10,000 S.C Valves. Qualifying bidders eligible for order shall be chosen in the ascending order of contract quantity allotted to them in the running contracts for SC Valves. For this purpose.

Allotted Contract qty = Original Contract qty + contract qty added on a/c of previous re-allocation due to pruning - pruned quantity of the bidder.

In case part or full pruned quantity is still unallocated after the afore-mentioned exercise then BPC reserves the right to reallocate the balance quantity to other successful tenderers and/or procure it on risk purchase basis as per clause 11 below.

(b) The limitation on order quantity will not be applicable for the reallocation of pruned quantities.

(c) BPCs’ decision in regard to Pruning & Reallocation on case to case basis and the methodology followed shall be final.

(d) The limitation on order quantity will not be applicable for the reallocation of pruned quantities.

(e) BPCs’ decision in regard to Pruning & Reallocation on case to case basis

and the methodology followed shall be final.



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(f) Holiday listing of vendors shall be done as per the holiday listing policy.

10. PENALTY FOR FAILURE TO SUPPLY

(a) In the event of full or partial failure to supply (with or without time extension), penalty @ 5% of the NDP shall be levied on the entire undelivered quantity.

(b) Successful tenderer shall not be entitled to claim waiver from PRICE

REDUCTION and/or PENALTY because of the Pruning & Re-allocation of the short supplied quantities as described in (9) above.

11. RISK PURCHASE

(a) In case the Successful tenderer fails to supply the material as per the delivery schedule/revised delivery schedule due to any reason whatsoever, including suspension, BPCL reserves the right to procure similar material at the Successful tenderer’s risk, cost and responsibility from other sources or even from the same tenderer (on successful tenderer’s request and at BPCL’s sole discretion). The successful tenderer shall have to bear the differential cost between what would have been payable to him/her and the cost actually paid by BPCL for such procurement and/or placement of such shortfall quantity to the short-supplied plant.

(b) In case the party is under suspension at the start of the month, no

orders will be released. However, proportionate order quantity due from the party, as described in clause 7(f) above, shall be procured from other parties under risk purchase.

(c) Such penalty shall be levied over and above the PENALTY recoverable

from the party on account of such non-delivery of material. (d) If due to any breach committed by the Supplier, the order is terminated,

the Supplier will be liable to make good the loss or damage suffered by the BPCL in line with clause (a) above.

(e) Holiday listing of vendors shall be done as per the holiday listing policy.

12. RECOVERY OF OUTSTANDING AMOUNTS:

Whenever, any claim against Successful Tenderer for payment of a sum of money arises out of or under the contract, BPCL shall be entitled to recover such sums from any sum then due or when at any time thereafter may become due from the Successful Tenderer under this or any other contract with BPCL and should this sum be not sufficient to cover the recoverable amount of claim(s), the successful tenderer shall pay to BPCL on demand the balance remaining due.



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It is also agreed and understood that for the purpose of calculating the damages recoverable, it will be assumed that the contract continued to remain valid even after expiry of the contract period and BPCL can recover such amounts from the pending bills of/Supply and Performance Guarantee amount deposited by the Successful Tenderer.

13. FORCE MAJEURE

Circumstances leading to force majeure -

(a) Act of terrorism;

(b) Riot, war, invasion, act of foreign enemies, hostilities (whether war be

declared or not), civil war, rebellion, revolution, insurrection of military or

usurped power;

(c) Ionising radiation or contamination, radio activity from any nuclear fuel

or from any nuclear waste from the combustion of nuclear fuel, radioactive

toxic explosive or other hazardous properties of any explosive assembly or

nuclear component;

(d) epidemics, earthquakes, flood, fire, hurricanes, typhoons or other

physical natural disaster, but excluding weather conditions regardless of

severity; and

(e) freight embargoes, strikes at national or state-wide level or industrial

disputes at a national or state-wide level in any country where Works are

performed, and which affect an essential portion of the Works but

excluding any industrial dispute which is specific to the performance of the

Works or the Contract.

For the avoidance of doubt, inclement weather, third party breach, delay in

supply of materials (other than due to a nationwide transporters’ strike) or

commercial hardship shall not constitute a Force Majeure event.

• Notification of Force Majeure -

Contractor shall notify within [10(ten)] days of becoming aware of or the

date it ought to have become aware of the occurrence of an event of Force

Majeure giving full particulars of the event of Force Majeure and the

reasons for the event of Force Majeure preventing the Affected Party from,

or delaying the Affected Party in performing its obligations under the

Contract.



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• Right of either party to terminate -

If an event of Force Majeure occurs and its effect continues for a period of

180 (one hundred eighty days) or more in a continuous period of 365

(three hundred sixty five) days after notice has been given under this

clause, either Party may terminate the Contract by issuing a written notice

of 30 (thirty) days to the other Party.

• Payment in case of termination due to Force Majeure -

The Contract Price attributable to the Works performed as at the date of

the commencement of the relevant event of Force Majeure.

The Contractor has no entitlement and Owner has no liability for:

a) Any costs, losses, expenses, damages or the payment of any part of the Contract Price during an event of Force Majeure; and

b) Any delay costs in any way incurred by the Contractor due to an event of Force Majeure. Time extension for such cases will be worked out appropriately.

14. RAW MATERIAL

(a) The The successful tenderer is exclusively responsible for procurement of all raw materials of SC valves, conforming to applicable specifications to meet the supply as per contracted delivery schedule. SC valves to be procured from authorized parties only.

(b) Rubber components and other bought-out items shall be thoroughly tested as per the test procedure given in the ‘Technova’ technology details provided by IOCL. The successful tenderer is also required to furnish the following information as and when required.

a. Results of test carried out by rubber component manufacturers b. Results of rubber components tests carried out by the successful

tenderer c. Results of tests carried out by the successful tenderer on other bought-

out items, if any.

(c) In respect of the components which are required for the manufacture of SC Valves, the successful tenderer shall from time to time during the currency of this Contract inform BPCL, the list of such items including the names and addresses of the suppliers of such items and the measures taken for ascertaining the quality assurance of such items.



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(d) BPCL reserves the right to specify the name of reputed/reliable/ established vendors from whom raw materials and components shall be procured. In such case, successful tenderer shall procure such raw materials and components from BPCL approved parties only.

15. INSPECTION

(a) Materials shall be inspected by BIS before dispatch of materials. As per

statutory requirement, the successful tenderer shall prepare Test Certificates, duly signed by BIS. However, arranging and providing inspection facilities is entirely successful tenderer’s responsibility and in no way shall affect the delivery schedule.

(b) The inspection shall be carried out as per the relevant standards/scope of inspection provided along with the Tender Enquiry/Purchase Order.

(c) BPCL may, at its own expense, have its representative(s) witness any test or inspect the SC Valves/inspection gauges/test set-ups. In order to enable BPCL’s representative(s) to witness the tests/ inspections at the successful tenderer's works, all required facilities shall be provided by the successful tenderer at his costs. BPCL will advise the successful tenderer in advance whether it intends to have its representative(s) be present at any of the inspections.

(d) Even if the inspection and tests are fully carried out, the successful tenderer shall not be absolved from its responsibilities to ensure that the Material(s), raw materials, components and other inputs are supplied strictly to conform and comply with all the requirements of the Contract at all stages, whether during manufacture and fabrication, or at the time of Delivery as on arrival at site or consumption, and during the defect liability period. The inspections and tests are merely intended to prima-facie satisfy BPCL that the Material(s) and the parts and components comply with the requirements of the Contract. The successful tenderer’s responsibility shall also not be anywise reduced or discharged because BPCL or BPCL’s representative(s) or Inspector(s) shall have examined, commented on the successful tenderer’s drawings or specifications or shall have witnessed the tests or required any chemical or physical or other tests or shall have stamped or approved or certified any Material(s).

(e) Although material approved by the Inspector(s), if on testing and inspection after receipt of the Material(s) at the location, any Material(s) are found not to be in strict conformity with the contractual requirements or specifications, BPCL shall have the right to reject the same and hold the successful tenderer liable for non-performance of the Contract.

16. TEST CERTIFICATES

(a) As per statutory requirements, the successful tenderer shall prepare at

least three copies of test certificates for SC Valves to be supplied, duly signed by the BIS. The distribution of copies is as under :



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First Copy - To the consignee (Plant) along with a list of

Serial numbers of SC VALVE despatched Second Copy - To LPG Equipment Department, Sewree Third Copy - Vendor Copy

(b) The successful tenderer is fully responsible for obtaining BIS test certificates, for the SC Valves supplied by them, at their own cost. SC Valves not accompanied by BIS test certificates shall not be accepted.

17. PACKAGING : (a) Each lot of 200 Nos. (Two Hundred) Valves complete with Safety

Caps and thread protection caps shall be packed with appropriate packing in dealwood boxes of adequate strength with necessary hoop iron straps, both longitudinal and lateral, to withstand handling and transit damage by road.

(b) Batch No. of all Valves packed in one carton should be in

sequence. (c) The boxes should be marked legibly / labelled with following

information :

(i) Item- SELF CLOSING LPG VALVE - KOSAN TECHNOVA TYPE.

(ii) Quantity packed. (iii) Gross weight including wooden box. (iv) Manufacturer's Name/Full Address (v) Batch No./Nos. (vi) Date of packing. (vii) Month and Year of manufacture.

A copy of the Packing Slip with complete details of the contents of the box duly signed by the successful tenderer's authorised representative will be placed inside each box. Another copy is to be enclosed to the despatch documents, recording the identification for the particular box. Further, any damage or loss of Valves because of poor quality packing or any other reason shall be recoverable from the successful tenderer as decided by the Corporation. The Corporation at its discretion may authorize alternate packaging at the request of the successful tenderer. Such authorization must be obtained in writing, in advance.

18. DESPATCHES

(a) All the SC Valves will be despatched by the successful tenderer by road only, on freight pre-paid basis, in accordance with the



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instructions issued by the Corporation from time to time. The consignments shall be sent on door delivery basis in full truck-loads/part truckload including unloading and stacking at the receiving location.

(b) The successful tenderer shall undertake transportation of SC Valves by

road only through established and reliable transporters.

(c) The successful tenderer, in their own interest may take out insurance cover for each and every consignment to take care of any transit loss, damage, shortage etc at their own cost. No payment shall be made by the Corporation towards cost of insurance to the successful tenderer.

19. GUARANTEE (a) The SC Valves shall be guaranteed by the successful tenderer for a period

of 24 months from the date of manufacture, against manufacturing defects.

(b) In the event of manufacturing defects being detected at the time of delivery or within the guarantee period, the successful tenderer will be directly informed in writing by the concerned Territory Office. The successful tenderer will have the choice to inspect the SC Valves at the concerned Territory office or supply new SC Valves as replacement against the defective SC Valves within thirty days of despatch of such intimation, at their own cost. In case of joint inspection, the successful tenderer will have to supply new SC Valves as replacement against the defective SC Valves within 30 days from the date of joint inspection. If the manufacturer’s representative does not turn up for inspection within the time stipulated by BPCL, the lot shall be treated as defective and accordingly action shall be taken.

New SC Valves will have to be supplied as replacement against the defective Valves segregated at the time of delivery or during guarantee period as above or else the full cost of such Valves will be recovered from the party. Additionally, a commercial penalty of Rs 5/- per defective SC VALVE shall be levied to cover the administrative cost. Rectification of SC VALVE shall not be permitted and defective SC Valves shall be crushed and scrap and will be retained by BPCL.

20. TEMPORARY STOPPAGE

In case of temporary inability of BPCL to accept SC Valves, BPCL shall not be held responsible for any loss/storage charges that the successful tenderer may have to sustain and the Company shall not be required to make any payment towards the SC Valves already manufactured or any other payment on account of inventory carrying cost. 21. OBLIGATION TO SELL SC VALVES TO PUBLIC SECTOR CORPORATION ONLY



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(a) The successful tenderer shall not engage in the manufacture, sale and supply of 25.6 mm diameter SC Valves of ‘KOSAN TECHNOVA’ design and as per technology provided by BPCL to any individual, firm or any company other than the public sector oil companies engaged in Marketing of LPG during or after the currency of this Agreement.

(b) The successful tenderer shall fulfil the commitments of the Corporation on

first priority. (c) The successful tenderer shall also not export SC Valves of ‘KOSAN

TECHNOVA’ design manufactured by him except with the prior approval of the Corporation in writing.

Disposal of scrap arising out of the manufacturing process will not be covered under the above provisions. All scrap arising out of the manufacturing process including whole SC Valves which are rejected (while testing/ certification) and SC Valves rejected by the Corporation at the successful tenderer’s premises may be disposed off by the successful tenderer, only after ensuring that such items are deshaped in the presence of BIS Officer/ Corporation official so that the same cannot be used. The successful tenderer shall maintain proper records of all such rejections.

22. TERMINATION Notwithstanding anything contained in the Contract, BPCL reserves the right to cancel the contract/purchase order or any part thereof through a written notice to the successful tenderer if:

(a) The successful tenderer fails to comply with the terms of this purchase order/contract.

(b) The successful tenderer becomes bankrupt or goes into liquidation.

(c) The successful tenderer fails to deliver the goods on time and/or replace the rejected goods promptly.

(d) The successful tenderer makes a general assignment for the benefit of creditors.

(e) A receiver is appointed for any of the property owned by the successful tenderer.

(f) If it is established that the SC Valve manufacturer has been indulging in malpractice/ manufacture of spurious SC Valves/ unauthorised manufacturing of SC Valves or on such other grounds that is considered by the Corporation to be in contravention to the contractual obligation. The Corporation’s right to so terminate the contract shall be without prejudice to any other right and remedy available against the successful tenderer including the right for recovery of damages if any from the successful tenderer, and in the event of the Corporation so terminating the contract, the Corporation shall not be liable to pay any compensation



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or damages in consequence of such termination to the successful tenderer.

(g) SC Valve units are supposed to have a good track record and clear credential in the past. If any unit is found indulging in any unauthorised activities at any time, even in the past, then the Corporation shall have the liberty to take appropriate action as deemed fit including rejection, termination immediately on receipt of such information.

Upon receipt of the said cancellation notice, the successful tenderer shall discontinue all work on the purchase order matters connected with it and shall surrender incomplete SC Valves to the authorities designated by the Corporation. BPCL in that event will be entitled to procure the requirement in the open market and recover excess payment over the successful tenderer's agreed price if any, from the successful tenderer and also reserving to itself the right to forfeit the Supply and Performance Guarantee amount, made by the successful tenderer against the contract. The successful tenderer is aware that the said goods are required by BPCL for the ultimate purpose of materials production and that non-delivery may cause loss of production and consequently loss of profit to the BPCL. In this event of BPCL exercising the option to claim damages for non-delivery other than by way of difference between the market price and the contract price, the successful tenderer shall pay to BPCL, fair compensation to be agreed upon between BPCL and the successful tenderer. The provision of this clause shall not prejudice the right of BPCL from invoking the provisions of price reduction clause mentioned above.

23. ASSIGNMENT/SUB-CONTRACTING

The successful tenderer shall not sublet the contract or assign any part of the order to any person/firm/company without prior written consent from the Corporation. 24. ACQUIESCENCE OR WAIVER Failure of the Corporation to insist upon any of the terms or conditions incorporated in the Purchase Order or failure or delay to exercise any rights or remedies herein, or by law or failure to properly notify successful tenderer in the event of breach, or the acceptance of or payment of any goods hereunder or approval of design shall not release the successful tenderer and shall not be deemed a waiver of any right of the Corporation to insist upon the strict performance thereof or of any of its or their rights or remedies as to any such goods regardless of when such goods are shipped, received or accepted nor shall any purported oral modification or revision of the order by BPCL act as waiver of the terms hereof. Any waiver to be effective must be in writing. 25. ARBITRATION

Any dispute or difference whatsoever arising out of or in connection with this Agreement including any question regarding its existence, validity,



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construction, interpretation, application, meaning, scope, operation or effect of this contract or termination thereof shall be referred to and finally resolved through arbitration as per the procedure mentioned herein below:

(a) The dispute or difference shall, in any event, be referred only to a Sole Arbitrator

(b) The appointment and arbitration proceedings shall be conducted in accordance with SCOPE forum of Arbitration Rules for the time being in force or as amended from time to time

(c) The Seat of arbitration shall be at Mumbai (d) The proceedings shall be conducted in English language (e) The cost of the proceedings shall be equally borne by the parties,

unless otherwise directed by the Sole Arbitrator.

In the event of any dispute or difference relating to the interpretation and application of the provisions of commercial contract(S) between Central Public Sector Enterprises (CPSEs)/ Port Trusts inter se and also between CPSEs and Government Departments/Organizations (excluding disputes concerning Railways, Income Tax, Customs & Excise Departments*), such dispute or difference shall be taken up by either party for its resolution through AMRCD as mentioned in DPEOM No.4(1)/2013-DPE(GM)/FTS-1835 dated 22-05-018”.

(* The exclusion would also include disputes concerning GST, State level Sales Tax / VAT etc though not mentioned explicitly).

26. CONFIDENTIALITY OF TECHNICAL INFORMATION

Drawing, specifications and details shall be the property of the BPCL and shall be returned by the successful tenderer on demand. The successful tenderer shall not make use of drawing and specifications for any purpose at any time save and except for the purpose of BPCL. The successful tenderer shall not disclose the technical information furnished to or organized by the successful tenderer under or by virtue of or as a result of the implementation of the Purchase Order to any person, firm or body or corporate authority and shall make all endeavours to ensure that the technical information is kept CONFIDENTIAL. The technical information imparted and supplied to the successful tenderer by BPCL shall at all-time remain the absolute property of BPCL.

27. COMPLIANCE OF REGULATIONS

Successful tenderer warrants that all goods/Materials covered by this order have been produced, sold, dispatched, delivered and furnished in strict compliance with all applicable laws, regulations, labour agreement, working condition and technical codes and statutory requirements as applicable from time to time. The successful tenderer shall ensure compliance with the above



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Page 19 of 24

and shall indemnify owner against any actions, damages, costs and expenses of any failure to comply as aforesaid

28. HOLIDAY LISTING:

(a) The following expressions used in this clause shall have the meaning indicated against each of these, unless the context otherwise requires:

Agency: “Party/Contractor/Supplier/Vendor/Consultant/Bidder/ Licensor” in the context of these guidelines is indicated as ‘Agency’; “Party/Contractor/Supplier/Vendor/Consultant/bidders/Licensor” shall mean and include a public limited company or a private limited company, a joint venture, Consortium, HUF, a firm whether registered or not, an individual, co-operative society or an association or a group of persons engaged in any commerce, trade, industry etc.

Appellate Authority: “Appellate Authority” shall mean the concerned functional Director of BPCL or any other authority nominated by the C & MD. The Appellate authority shall be higher than the “Competent Authority”.

Competent Authority: “Competent Authority” shall mean the authority, who is competent to take final decision for Banning of business dealings with Agencies, in accordance with these guidelines:

The Competent Authority for a Procurement Department which is initiating the Holiday Listing process should be the Regional head (or) SBU / Entity head as the case may be relevant to the said Procurement Department, but not below the level of General Manager

Corporation: “Corporation” means Bharat Petroleum Corporation Ltd. with its Registered Office at Bharat Bhavan-I, 4&6 Currimbhoy Road, Ballard Estate, Mumbai-400001.

Corrupt Practice: “Corrupt Practice” means the offering, giving, receiving or soliciting, directly or indirectly, anything of value to improperly influence the actions in selection process or in contract execution. Corrupt Practice” also includes any omission for misrepresentation that may mislead or attempt to mislead so that financial or other benefit may be obtained or an obligation avoided.

Fraudulent Practice: “Fraudulent Practice” means and include any act or omission committed by a agency or with his connivance or by his agent by misrepresenting/ submitting false documents and/ or false information or concealment of facts or to deceive in order to influence a selection process or during execution of contract/ order;

Collusive Practice : “Collusive Practice” amongst bidders (prior to



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Page 20 of 24

or after bid submission)” means a scheme or arrangement designed to establish bid prices at artificial non-competitive levels and to deprive the Employer of the benefits of free and open competition.

Coercive Practice: “Coercive practice” means impairing or harming or threatening to impair or harm directly or indirectly, any agency or its property to influence the improperly actions of an agency, obstruction of any investigation or auditing of a procurement process.

Officer-in-Charge: “Officer –in-Charge (OIC)” or “Engineer-in-Charge (EIC)” shall mean the person (s) designated to act for and on behalf of BPCL for the execution of the work as per requirement of the concerned department.

Malpractice : Malpractice means any Corrupt Practice, Fraudulent Practice, Collusive Practice or Coercive practice as defined herein;

Misconduct : “Misconduct” means any act or omission by the Agency, making it liable for action for Holiday Listing as per these guidelines

Nodal Department: “Nodal Department” means the Department primarily assigned with the role of overseeing the Holiday Listing Process to ensure adherence to guidelines, maintaining, updating and publishing the list of Agencies with whom BPCL has decided to ban business dealings and shall be the Corporate Finance Department.

Vendor De-listment Committee: “Vendor De-listment Committee” relevant to the procurement department which initiates the holiday listing process would the same as the vendor enlistment Committee as per DR&A of the concerned SBU/Entity.

(b) An Agency may be placed in Holiday List for any one or more of the following circumstances for the period mentioned herein:

i. In the context of its dealings with the Corporation:

S. No Reasons for holiday listing Period of holiday listing

1 Indulged in malpractices resulting in financial loss to the Corporation 15years

2 Submitted fake, false or forged documents / certificates 3years

3 Has substituted materials in lieu of materials supplied by BPCL or

has not returned or has unauthorized disposed off

materials/documents/drawings/tools or plants or equipment supplied

by BPCL

15years

4 Has deliberately violated and circumvented the provisions of labour

laws/regulations/rules, safety norms, environmental norms or other

statutory requirements

3years

5 Has deliberately indulged in construction and erection of defective

works or supply of defective materials 3years

6 has not cleared BPCLs previous dues if applicable 1year

7 Has committed breach of contract or has abandoned the contract 3years



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Page 21 of 24

8 Poor performance of the Agency in one or several contracts 1year

9 Has not honoured the fax of award/letter of award/ Contract/

Purchase order after the same is issued by BPCL 1year

10 Withdraws/revises the bid upwards after becoming the L1 bidder 1year

11 Has parted with, leaked or provided confidential/ proprietary

information of BPCL to any third party without the prior consent of

BPCL

15years

ii. Following additional grounds can also be reasons for Holiday Listing of an agency:

S. No Reasons for holiday listing Period of holiday listing

1 If the Agency is or has become bankrupt , OR is being dissolved OR

has resolved to be wound up OR if proceedings for winding up or

dissolution has been instituted against the Agency

3years

2 Any other ground, including transgression of Integrity Pact, which, in

the opinion of the Corporation, makes it undesirable to deal with the

Agency; In the case of transgression of Integrity Pact, the same

should be substantiated by the verdict of the Independent External

Monitor

3years

iii. In cases where Holiday Listing is proposed based on advice from the Administrative Ministry, no show cause or formal decision by competent authority will be required. The Nodal Department will directly intimate the Agency that they have been placed in Holiday Listing by BPCL based on the Ministry’s advice

(c) Provision for Appeal • An agency aggrieved with the decision of the Competent Authority

shall have the option of filing an appeal against the decision of the Competent Authority within a maximum of 15 days from the date of receipt of intimation of holiday listing.

• Any appeal filed after expiry of the above period shall not be considered by the Appellate Authority;

• On receipt of the Appeal from the Agency, the Appellate Authority, if it so desires, may call for comments from the Competent Authority;

• After receipt of the comments from the Competent Authority, the Appellate Authority, if it so desires, may also give an opportunity for personal hearing, to the Appellant Agency;

• After examining the facts of the case and documents available on record and considering the submissions of the Appellant Agency, the Appellate Authority may pass appropriate order by which the Appellate Authority may either : i. Uphold the decision of Competent authority with or without any

variation/lesser period of Holiday Listing; OR ii. Annul the order of the Competent Authority.

• No Appeal is permitted in case an Agency is placed in Holiday List by BPCL, based on Ministry’s advice.



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(d) Effect of Holiday Listing • No enquiry/bid/tender shall be entertained with an Agency as long as

the ‘Agency’ name appears in the Holiday list. • If an ‘Agency’ is put on the Holiday list during tendering:

i. If an‘ Agency’ is put on Holiday List after issue of the enquiry/bid/tender but before opening of the un-priced bid, the un-priced bid of the ‘Agency’ shall not be opened and BG/EMD, if submitted by the ‘Agency’ shall be returned. If an ‘Agency’ is put on Holiday List after un-priced bid opening but before price bid opening, the price bid of the ‘Agency’ shall not be opened and BG/EMD submitted by the ‘Agency’ shall be returned .

ii. If an ‘Agency’ is put on Holiday List after opening of price bid but before finalization of the tender, the offer of the ‘Agency’ shall be ignored and will not be further evaluated and the BG/EMD if any submitted by the ‘Agency’ shall be returned, The ‘Agency’ will not be considered for issue of order even if the ‘Agency’ is the lowest (L1). In such situation next lowest shall be considered as L1;

iii. If contract with the ‘Agency’ concerned is in operation, (including cases where contract has already been awarded before decision of holiday listing) normally order for Holiday Listing from business dealings cannot affect the contract, because contract is a legal document and unless the same is terminated in terms of the contract, unilateral termination will amount to breach and will have civil consequences.

(e) Revocation of suspension order “A Holiday Listing order may, on a review during its currency of operation, be revoked by the competent authority if it is of the opinion that the disability already suffered is adequate in the circumstances of the case, and the Agency has taken appropriate action to avoid recurrence. “

The entire guidelines and procedures for Holiday Listing are available in BPCL website and they can be accessed @ http://bharatpetroleum.in/pdf/holidaylistingpolicyfinal.pdf.

29. JURISDICTION The parties hereby agree that the courts in the city of Mumbai alone shall have jurisdiction to entertain any application or other proceedings in respect of anything arising under this Agreement and any award or awards made by the sole arbitrator hereunder shall be filed in the concerned courts in the aforesaid city only.

30. LIMITATION OF LIABILITY FOR GOODS PROCUREMENT The aggregate total liability of the Contractor to Owner under the Contract shall not exceed the total Contract Price, except that this Clause shall not limit the liability of the Contractor for following:

http://bharatpetroleum.in/pdf/holidaylistingpolicyfinal.pdf



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Page 23 of 24

(a) In the event of breach of any Applicable Law;

(b) In the event of fraud, willful misconduct or illegal or unlawful acts, or

gross negligence of the Contractor or any person acting on behalf of the

Contractor; or

(c) In the event of acts or omissions of the Contractor which are contrary

to the most elementary rules of diligence which a conscientious

Contractor would have followed in similar circumstances; or

(d) In the event of any claim or loss or damage arising out of infringement

of Intellectual Property; or

(e) For any damage to any third party, including death or injury of any

third party caused by the Contractor or any person or firm acting on behalf

of the Contractor in executing the Works.

Neither Party shall be liable to the other Party for any kind of indirect or consequential loss or damage like, loss of use, loss of profit, loss of production or business interruption which is connected with any claim arising under the Contract.

31. ORDER OF PRECEDENCE FOR PURCHASES

1. Purchase Order

2. Detailed letter of Acceptance along with its enclosures

3. Letter of Award / Fax of Acceptance

4. Job Specifications (specific to particular job only)

5. Drawings

6. Special Purchase Conditions (SPC)

7. Technical Specifications

8. Instructions to Bidders

9. General Purchase Conditions (in GPC)

10. Other Documents

Additionally, any variation or amendment / change order issued after signing of formal contract shall take precedence over respective clauses of the formal contract and its Annexures.

32. TERMINATION FOR CONVENIENCE

The purchaser may, by written notice of 14 days sent to the seller, cancel the contract, in whole or part, at any time for his convenience. The notice of cancellation shall specify that cancellation is for the purchaser’s convenience, the extent to which performance of work under the contract is cancelled and the date upon which such cancellation becomes effective.

The goods that are complete and ready for shipment within 30 days after the seller’s receipt of notice of cancellation shall be purchased by the purchaser



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at contract terms and prices. For the remaining goods, the purchaser may opt:-

a. To have any portion completed and delivered at the contract terms

and prices

and / or

b. To cancel the remainder and pay to the seller an agreed amount for

partially completed goods and materials and parts previously

procured by the seller.

33. VALIDITY OF THE CONTRACT The total requirement shown in this tender enquiry is for a period of three months from the date of placement of Rate Contract. Hence the tender shall be valid for a period of three months initially from the date of placement of Rate Contract.

The contract period may be extended/repeated at sole discretion of Corporation for a further period of up to 3 months including increasing the contract quantity calculated on prorate basis on repeat order basis, at the same terms and conditions. In case of any dispute in the interpretation of the terms and conditions of the tender, the decision of the Corporation in this matter shall be final and binding.

QUALITY DISCIPLINE GUIDELINES - 2019

FOR CYLINDER, SC VALVE, DPR

QUALITY DISCIPLINE GUIDELINES 2019 FOR CYLINDER, SC VALVE, DPR

1

INTRODUCTION –

Liquefied Petroleum Gas (LPG) marketing commenced in India during the year 1955

at (Bombay) Mumbai by then M/s Burma Shell. Since then LPG market in India has

evolved over the last six decades and more from a miniscule level to the present

position of over 27 crore customers on Industry basis. The tremendous growth that

India has seen in LPG sales in the past decade can be mainly attributed to the

government policies and the need for alternative clean and green fuels.

The flagship scheme of GOI, the Pradhan Mantri Ujjwala Yojna (PMUY) which provided

8 crore LPG connections starting from FY 2016-17 to women of BPL households has

further bolstered the demand for LPG and LPG equipment in the nation.

The exponential rise in CVR (Cylinder, SC Valve, Regulator) manufacturing and the

need to ensure quality in production, warrants the implementation of stringent quality

controls. Presently, the quality monitoring norms are not standardized amongst OMCs

and there is a need to standardize the norms and define the quality discipline

guidelines for uniform implementation amongst OMCs.

LPG equipment is procured individually by OMCs thru tendering process. The technical

conditions and terms are common across the OMCs as formulated by the Oil Industry

Technical Committee (OITC). The various technical conditions and guarantee terms

spell out the desired quality of the LPG equipment that are to be supplied by the

manufacturers. Besides these technical specifications, there are clauses on warranty

applicable to the manufacturers. In order to ensure that the manufacturers supply the

desired quality equipment, various actions to be taken against erring manufacturers

are formulated into the Quality Discipline Guidelines (QDG). QDG forms part & parcel

of the instructions as issued from time to time under relevant clause on ‘Quality’ and

‘Guarantee’ of the tender.

These guidelines shall be constantly updated to ensure quality of product and services

and enforcing discipline amongst the manufacturers.


2

CHAPTER – 1: LPG CYLINDERS

NON-CONFORMITIES IN LPG CYLINDER MANUFACTURING

1.1 Critical Quality Non-conformities

Critical Quality Non-conformities are those quality defects that make the equipment unsafe

for usage. These defects maybe identified either at bottling plants during SQC/RQC/ or at

LERC/BIS approved labs during routine tests or at Manufacturer’s end during inspection of

BIS cleared batch by OITC/OMC. These defects so identified shall warrant action as per terms

mentioned in this guideline.

The quality defects that shall be considered as Critical Quality Non-conformities and that may

render the cylinder unsafe are listed below:

1.1.1 First Fill leak at plants

1.1.2 Failure in Burst test (Burst Pressure or Volumetric Expansion)

1.1.3 Failure in Hydro-testing /pneumatic testing

1.1.4 Non-conformity w.r.t Water Capacity

1.1.5 Non-conformity w.r.t Minimum thickness

1.1.6 Dimensions of pressure parts not as per drawing

1.2 Major Quality Non-conformities

Major Quality Non-conformities are those quality defects that make the equipment unusable.

These defects maybe identified either at bottling plants during SQC/RQC/ or at LERC/BIS

approved labs during routine tests or at Manufacturer’s end during inspection of BIS cleared

batch by OITC/OMC. The defects so identified shall warrant action as per terms mentioned in

this guideline.

The quality defects that shall be considered as Major Quality Non-conformities and that may

render the cylinder unusable are listed below:

1.2.1 Broken foot ring welding

1.2.2 Broken stay plate welding

1.2.3 Non uniform welding, chatter marks, weld overruns in Circumferential/

bung/foot ring/stay plate/VP ring Weld

1.2.4 Stay Plates not welded from both sides

1.2.5 Stay plate/VP ring assembly dimensions & marking not as per OMC drawing

1.2.6 Foot ring dimensions & markings not as per OMC drawing

1.2.7 Other OMC Cylinder or cylinder fitted with Other OMC foot ring

1.2.8 Bent / inclined stay plate


3

1.2.9 Bung eccentric / valve inclined on cylinders

1.2.10 Bung threads failing in gauging as per IS 15894

1.2.11 wrong/double markings/ overlapping marking on bung

1.2.12 Bung / stay plate eccentricity beyond the permissible limits

1.2.13 Cylinders having dent, dig, cut, bulge, wrinkle as per IS 13258

1.2.14 Damaged VP Ring or VP Ring type not as per specification

1.2.15 Variation in actual and punched tare weight on bung/stay plate or both by

more than 100 gm

1.2.16 More than one cylinder with same serial number

1.2.17 Foot ring slots missing or not as per specifications

1.2.18 Cylinder dimensions (other than pressure parts) not as per the specifications

given in OMC tender

1.2.19 Minimum Tare weight of cylinder not as per OMC specification

1.2.20 Any defect which involves hot work on the body of cylinder

1.2.21 Mismatch in test date/Cylinder Serial number/ Tare wt. punched on Stay plate

& bung

1.2.22 Non-conformance w.r.t Acceptance test (yield, tensile and elongation), Face /

bend test, verticality, foot ring thickness, ground clearance

1.2.23 Weep hole not as per the tender condition

1.2.24 Failure in macro examination at LERC /BIS Lab

1.2.25 VP ring joint is not at the center of the stay plate

1.2.26 Failure in Chemical analysis of material

1.2.27 Metallizing not done as per tender condition

1.2.28 Any other defect which makes the equipment unusable

1.3 Minor Quality Non-conformities

Minor Quality Non-conformities are those quality defects that can be rectified and the

equipment can be put to use. These defects maybe identified either at bottling plants during

SQC/RQC/ or at LERC/BIS approved labs during routine tests or at Manufacturer’s end during

inspection of BIS cleared batch by OITC/OMC. The defects so identified shall warrant action

as per terms mentioned in this guideline.

The quality defects that shall be considered as Minor Quality Non-conformities and that can

be rectified are listed below:

1.3.1 Valve Bung thread joint leak

1.3.2 Painting quality not as per tender condition/drawing

1.3.3 Variation of 100 grams or more in stenciled wt. & actual wt

1.3.4 Stenciling of tare weight / safety slogans / Logo not as per approved drawing

1.3.5 Stenciling is smudged/illegible


4

1.3.6 Safety cap not fitted on valve / safety cap without nylon thread/safety cap not

as per OMC Specifications & drawing

1.3.7 Valve over / under tightened. In case of over-tightened valve, valve is to be

removed and to be provided with new valve at no extra cost to OMCs.

1.3.8 Illegible Bung / stay plate markings (where re-punching can resolve the issue)

1.3.9 Non-conformity w.r.t Paint thickness

1.3.10 Leakage from the body of the SC valve of cylinder

1.3.11 Cylinder with SC valve internal Part missing

1.3.12 SC valve without High quality O-ring procured from other than OITC enlisted

vendors

1.3.13 Any other rectifiable defect


5

ACTION TO BE TAKEN UNDER THE QUALITY DISCIPLINE GUIDELINES - CYLINDERS

The action has been proposed based on the different types of quality non-conformities

observed. The action taken for critical quality non-conformities will always be on Oil Industry

basis. The action taken for major and minor quality non-conformities will be on individual

OMC basis. The action initiated by any one OMC on Industry basis for a critical quality non-

conformity of the equipment identified in a particular manufacturing batch (Test date shall

be used as reference) shall not warrant for a repeat action by another OMC for any critical

quality non-conformity identified in any batch manufactured prior to the resumption advice.

In all cases the quality non-conformity shall always be established thru Joint inspection done

by the Manufacturer representative and the OMC/OITC representative. The instances will be

considered always within 2-year tenure starting from 1st established instance.

1.4 Critical:

a. First instance: Any established critical quality non-conformity will result in

suspension of production and dispatch on oil industry basis for all category of LPG

cylinders for a minimum period of one month from the date of issue of suspension

letter. OITC/OMC team shall verify the corrective actions taken by the

manufacturer based on the manufacturer’s readiness and compliance.

Revocation of suspension shall be done after one-month from the date of

suspension subject to compliance of the observations made by the OITC/OMC

team during their inspection and on approval of the revocation by competent

authority. The revocation letter will only be issued if the PESO/BIS licence stands

valid. Pruning of one month of total contract quantity (total contract qty/12) shall

be done.

b. Second instance: Any critical quality non-conformity established for a second

time within 2 years from 1st instance will result in suspension of production and

dispatch on oil industry basis for a minimum period of two months. OITC/OMC

team shall verify the corrective actions taken by the manufacturer based on the

manufacturer’s readiness and compliance. Revocation shall be done after two

months as per the process described in first instance. Pruning of two months of

total contract quantity, i.e. [(total contract qty/12) *2] shall be done.

c. Third instance: Any critical quality non-conformity established for a third time

within 2 years from 1st instance will result in holiday listing for 1 year. OITC/OMC


manufacturer’s readiness and compliance. Revocation shall be done after 1 year

as per the process described in first instance. Pruning of contract quantity (as

available in the contract) shall be done.


6

1.5 Major

a. First instance: The first established instance of any major quality non-

conformity shall result in debit of commercial penalty/Administrative cost and

cost of equipment for the number of defective equipment identified during

Joint inspection from the bills/PBG/SD of the manufacturer.

b. Second instance: Any major quality non-conformity established for a second

time within 2 years of 1st instance shall result in debit of commercial

penalty/Administrative cost and cost of equipment for the number of defective

equipment identified during Joint inspection from the bills/PBG/SD of the

manufacturer and shall also result in 5% reduction in the overall contract order

quantity.

c. Third instance: Any major quality non-conformity established for a third time

within 2 years of 1st instance shall result in debit of commercial




quantity.

d. Fourth and subsequent instance: Any major quality non-conformity

established for a fourth time within 2 years of 1st instance shall result in

suspension for a minimum period of one month on Oil Industry basis and debit

of commercial penalty/administrative cost and cost of the equipment for the

number of defective equipment identified during Joint inspection from the

bills/PBG/SD of the manufacturer. Revocation shall be done after one month as

mentioned in clause 1.4 a. Pruning of one month of total contract quantity (total

contract qty/12) shall be done.

1.6 Minor

a. First instance: The first established instance of any minor quality non-

conformity shall result in debit of commercial penalty/Administrative cost for

the number of defective equipment identified during Joint inspection from the

bills/PBG/SD of the manufacturer.

b. Second instance: Any minor quality non-conformity established for a second

time within 2 years of 1st instance shall result in debit of two times commercial

penalty/Administrative cost for the number of defective equipment identified

during Joint inspection from the bills/PBG/SD of the manufacturer and shall also

result in 1% reduction in the overall contract order quantity.


7

c. Third instance: Any minor quality non-conformity established for a third time

within 2 years of 1st instance shall result in debit of three times commercial




d. Fourth instance: Any minor quality non-conformity established for a fourth

time within 2 years of 1st instance shall result in debit of four times commercial




e. Fifth and subsequent instance: Any minor quality non-conformity established

for a fifth time within 2 years of 1st instance shall result in suspension for a

minimum period of one month on Oil Industry basis and debit of five times

commercial penalty/Administrative cost for the number of defective equipment

identified during Joint inspection from the bills/PBG/SD of the manufacturer.

Revocation shall be done after one month as mentioned in clause 1.4 a. Pruning

of one month of total contract quantity (total contract qty/12) shall be done.


8

CHAPTER – 2: SC VALVES

NON-CONFORMITIES IN SC VALVE MANUFACTURING


Critical Quality Non-conformities are those quality defects that make the equipment unsafe



BIS cleared batch by OITC/OMC. The defects so identified shall warrant action as per terms



render the SC Valve unsafe are listed below:

2.1.1 Failure of valve in Pneumatic Test

2.1.2 Valve body leakage

2.1.3 Any other leakage affecting safety






this guideline.


render the SC Valve unusable are listed below:

2.2.1 Failure in dimension of external threading as per IS 15894:2011(or latest) and

other critical dimensions

2.2.2 Wrong & illegible punching on Valve Hexagonal faces

2.2.3 Any visible physical damage to Valve body

2.2.4 Broken valve pin/Valves without internals

2.2.5 Non-conformance w.r.t Chemical composition

2.2.6 Non-conformance w.r.t Valve Inlet thread

2.2.7 Non-conformance w.r.t Pin Travel

2.2.8 Non-conformance w.r.t Valve body dimension



9

Minor Quality Non-conformities are those quality defects that can be rectified and make the

equipment usable. These defects maybe identified either at bottling plants during SQC/RQC/

or at LERC/BIS approved labs during routine tests or at Manufacturer’s end during inspection

of BIS cleared batch by OITC/OMC. The defects so identified shall warrant action as per terms




2.3.1 Safety caps not found as per specifications or missing

2.3.2 Valve “JOINT PACKING” or ‘O’ ring found to be not as per specifications or O-

ring missing

2.3.3 O-Ring not procured from OITC enlisted vendors

2.3.4 Any other rectifiable defects


10

ACTION TO BE TAKEN UNDER THE QUALITY DISCIPLINE GUIDELINES – SC VALVE

The action has been proposed based on the different types on quality non-conformities

observed. The action taken for critical quality non-conformities will be on Oil Industry basis

always. The action taken for major and minor quality non-conformities will be on individual

OMC basis. The action initiated by any one OMC on Industry basis for critical quality non-






considered always within 2 years starting from 1st established instance.

2.4 Critical:


suspension of production and dispatch on oil industry basis for a minimum period

of one month from the date of issue of suspension letter. OITC/OMC team shall

verify the corrective actions taken by the manufacturer based on the

manufacturer’s readiness and compliance.






be done.

b. Second instance: Any critical quality non-conformity established for a second time

within 2 years from 1st instance will result in suspension of production and dispatch

on oil industry basis for a minimum period of two months. OITC/OMC team shall







on oil industry basis for a minimum period of three months. OITC/OMC team shall


manufacturer’s readiness and compliance. Revocation shall be done after three


11

months as per the process described in first instance. Pruning of three months of


d. Fourth instance: Any critical quality non-conformity established for a fourth time



manufacturer’s readiness and compliance. Revocation shall be done after 1 year as

per the process described in first instance. Pruning of contract quantity (as available

in the contract) shall be done.

2.5 Major

a. First instance: The first established instance of any major quality non-conformity

shall result in debit of commercial penalty/Administrative cost and cost of

equipment for the number of defective equipment identified during Joint

inspection from the bills/PBG/SD of the manufacturer.

b. Second instance: Any major quality non-conformity established for a second time





quantity.






quantity.

d. Fourth and subsequent instance: Any major quality non-conformity established

for a fourth time within 2 years of 1st instance shall result in suspension for a

minimum period of one month on Oil Industry basis and debit of commercial

penalty/administrative cost and cost of the equipment for the number of defective


manufacturer. Pruning of one month of total contract quantity (total contract

qty/12) shall be done. Revocation shall be done after one month as mentioned in

clause 2.4 a.


12

2.6 Minor

a. First instance: The first established instance of any minor quality non-conformity

shall result in debit of commercial penalty/Administrative cost for the number of

defective equipment identified during Joint inspection from the bills/PBG/SD of the

manufacturer.

b. Second instance: Any minor quality non-conformity established for a second time

within 2 years of 1st instance shall result in debit of two times commercial









d. Fourth instance: Any minor quality non-conformity established for a fourth time

within 2 years of 1st instance shall result in debit of four times commercial




e. Fifth and subsequent instance: Any minor quality non-conformity established for

a fifth time within 2 years of 1st instance shall result in suspension for a minimum

period of one month on Oil Industry basis and debit of five times commercial


during Joint inspection from the bills/PBG/SD of the manufacturer. Pruning of one

month of total contract quantity (total contract qty/12) shall be done. Revocation

shall be done after one month as mentioned in clause 2.4a.


13

CHAPTER – 3: DPR

NON-CONFORMITIES IN DPR MANUFACTURING


Critical Quality Non-conformities are those quality defects that makes the equipment unsafe



BIS cleared batch by OITC/OMC. The defects so identified shall warrant action as per terms



render the DPR unsafe are listed below:

3.1.1 Failure of DPR in Soundness Test

3.1.2 Failure of DPR in Performance Test

3.1.3 Non-conformance w.r.t Pin Clearance tolerance

3.1.4 Failure of DPR in High & Low temp test

3.1.5 Non-conformance w.r.t dimensions leading to leakage or affecting safety

3.1.6 Failure of DPR in Ball drop test.

3.1.7 Any other non-conformity resulting in leakage or affecting safety






this guideline.


render the DPR unusable are listed below:

3.2.1 Non-conformance w.r.t dimensions not affecting safety

3.2.2 Non-conformance w.r.t Pin travel

3.2.3 Problem in Fitment to a standard S.C. Valve

3.2.4 Failure to maintain minimum weight specified for Regulator Body & Cover

3.2.5 Wrong & illegible punching / markings on Regulator body

3.2.6 Any visible physical damage to regulator body

3.2.7 Regulator colour not as per OMC drawing or colour/paint is peeling off

3.2.8 Wrong or illegible marking on the marking plate


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3.2.9 Non-conformance w.r.t Material Composition

3.2.10 Sr.no. & batch no. not at per specification

3.2.11 Broken collar or stainless steel ball missing in the 5 ball clamping mechanism

3.2.12 Breather hole of the regulator is blocked or not present

3.2.13 Failure of DPR in Bush & Tap test & their additional test (pertaining to

Diaphragm, Bush, Operating Tab)

3.2.14 Any other non-rectifiable defects


Minor Quality Non-conformities are those quality defects that can be rectified and make the

equipment usable. These defects maybe identified either at bottling plants during SQC/RQC/

or at LERC/BIS approved labs during routine tests or at Manufacturer’s end during inspection

of BIS cleared batch by OITC/OMC. The defects so identified shall warrant action as per terms




3.3.1 Failure of DPR in Adhesion test

3.3.2 Packaging not as per tender T & C or standard

3.3.3 Cover plate crimping is not as per design

3.3.4 Wrong marking on cover plate or wrong orientation

3.3.5 Any other rectifiable defect


15

ACTION TO BE TAKEN UNDER THE QUALITY DISCIPLINE GUIDELINES -DPR

The action has been proposed based on the different types on quality non-conformities

observed. The action taken for critical quality non-conformities will be on Oil Industry basis

always. The action taken for major and minor quality non-conformities will be on individual

OMC basis The action initiated by any one OMC on Industry basis for a critical quality non-






considered always within 2 years starting from 1st established instance.

3.4 Critical:


suspension of production and dispatch on oil industry basis for a minimum period

of one month from the date of issue of suspension letter. OITC/OMC team shall


manufacturer’s readiness and compliance.






be done.

b. Second instance: Any critical quality non-conformity established for a second time


on oil industry basis for a minimum period of two months. OITC/OMC team shall







on oil industry basis for a minimum period of three months. OITC/OMC team shall


manufacturer’s readiness and compliance. Revocation shall be done after three


16

months as per the process described in first instance Pruning of three months of


d. Fourth instance: Any critical quality non-conformity established for a fourth time



manufacturer’s readiness and compliance. Revocation shall be done after 1 year as

per the process described in first instance. Pruning of contract quantity (as available

in the contract) shall be done.

3.5 Major

a. First instance: The first established instance of any major quality non-conformity

shall result in debit of commercial penalty/Administrative cost and cost of

equipment for the number of defective equipment identified during Joint

inspection from the bills/PBG/SD of the manufacturer.

b. Second instance: Any major quality non-conformity established for a second time





quantity.






quantity.

d. Fourth and subsequent instance: Any major quality non-conformity established

for a fourth time within 2 years of 1st instance shall result in suspension for a

minimum period of one month on Oil Industry basis and debit of commercial

penalty/administrative cost and cost of the equipment for the number of defective


manufacturer. Pruning of one month of total contract quantity (total contract

qty/12) shall be done. Revocation shall be done after one month as mentioned in

clause 3.4a.

3.6 Minor


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a. First instance: The first established instance of any minor quality non-conformity

shall result in debit of commercial penalty/Administrative cost for the number of

defective equipment identified during Joint inspection from the bills/PBG/SD of the

manufacturer.

b. Second instance: Any minor quality non-conformity established for a second time

within 2 years of 1st instance shall result in debit of two times commercial









d. Fourth instance: Any minor quality non-conformity established for a fourth time

within 2 years of 1st instance shall result in debit of four times commercial




e. Fifth and subsequent instance: Any minor quality non-conformity established for

a fifth time within 2 years of 1st instance shall result in suspension for a minimum

period of one month on Oil Industry basis and debit of five times commercial


during Joint inspection from the bills/PBG/SD of the manufacturer. Pruning of one

month of total contract quantity (total contract qty/12) shall be done .Revocation

shall be done after one month as mentioned in clause 3.4 a.


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CHAPTER – 4: PROCEDURE TO BE FOLLOWED

The following procedure shall be adopted in post identification/establishment of defects.

4.1 For First Fill Leak cases at Bottling Plants:

a. After stoppage of production and dispatch, the manufacturer shall carry out the Joint

inspection at OMC Bottling Plants to witness the quality non-conformity. The Joint

Inspection report will be signed by both the manufacturer and OMC officer.

b. In all established cases, the manufacturer shall carryout radiography test of the point of

leak to identify the cause of defect. The manufacturer shall then do root cause analysis

for the defect and take corrective action at their unit to ensure that the same doesn’t

recur. The manufacturer shall then submit the following documents to OMCs for

approval:

I. Root cause analysis report

II. Action taken report

III. Radiography report

IV. BIS acknowledgement for corrective action taken

V. The Proof of sending the cylinder to LERC

c. Inspection will be carried out by OITC/OMC official for confirmation of corrective action

taken by the Manufacturer.

d. If FFL is not established or FFL is not attributable to the manufacturing process, the

concerned OMC shall advise for resumption of production and dispatches on oil industry

basis.

e. In addition to the above, the Manufacturer shall provide OMCs with indemnity bond as

per format given in tender/ or made available.

f. OMC will then initiate the note for revocation after compliance of observations made

during OITC/OMC inspection and the revocation letter shall be issued after receiving

approval from the competent authority subject to the validity of BIS and PESO Licence.

4.2 For all other critical quality non-conformities at BPs/LERC apart from FFL at BPs:

a. OITC/Competent OMC official will issue Suspension letter on oil industry basis to the

Manufacturer with intimation to BIS. Manufacturer will be asked to stop production

and dispatches to OMCs.

b. OITC /Concerned OMC Dept shall advise action to be taken on the manufacturer as

per the QDG and the stock of that particular batch shall be scrapped.

c. In all established cases, the manufacturer shall carryout root cause analysis to identify

the cause of defect in manufacturing. The manufacturer shall then take corrective

action at their unit to ensure that the same doesn’t recur. The manufacturer shall then

submit the following documents to OMCs for approval:

i. Root cause analysis report


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ii. Action taken report

iii. BIS acknowledgement for corrective action taken

d. Inspection will be carried out by OITC/OMC official for confirmation of corrective

action taken by the manufacturer.

e. In addition to the above, the Manufacturer shall provide OMCs with indemnity bond

as per format given in tender / or made available.

f. OMC will initiate note for revocation after compliance of the observations made during

OITC/OMC inspection and revocation letter shall be issued after receiving approval

from the competent authority subject to the validity of BIS and PESO Licence.

4.3 For all major/minor quality non-conformities observed at bottling plants:

a. OITC/competent OMC official will issue letter to the manufacturer about the defect.

Manufacturer shall depute their authorized representative to the concerned OMC

bottling plant for 100% Joint inspection of the batch.

b. After the Joint inspection, the report shall be mutually signed by both OMC officer and

manufacturer’s representative. The signed report shall be sent to OITC/Concerned

OMC dept. The equipment with rectifiable defects( In case of minor non conformities)

shall be rectified by the manufacturer at his own cost within plant premises. In case,

the manufacturer fails to rectify the defects, plant shall have the option to rectify the

same and debit the cost incurred for rectification from the manufacturer’s running

bills/security deposit/bank guarantee. The equipment with non-rectifiable defects

shall be de-shaped and scrapped and will not to be handed over to the manufacturer.

The vendor will be asked to replace the equipment or necessary debits will be raised

against the cost of the equipment.

c. Basis the joint inspection report and completion of rectification activity by the

manufacturer/plant, OITC/Concerned OMC dept shall advice for action to be taken as

per QDG.

d. Manufacturer will be required to submit the root cause analysis and action taken report

to OITC/Concerned OMC Dept.

e. In addition to the above, the Manufacturer shall provide OMCs with indemnity bond

as per format given in tender /or made available.

4.4 For all major/minor quality non-conformities observed at LERC/BIS approved test

labs:

a. OITC/competent OMC official will issue letter to the manufacturer about the defect. If

the test can be conducted at Bottling plant, Manufacturer shall depute their authorized

representative to the concerned OMC bottling plant from where the sample was sent

for 100% Joint inspection of the batch.


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b. If the test cannot be carried out at Plant, then OITC/ competent OMC official will advise

OMC plant to send another sample of the same batch to LERC for repeating the test

and if the batch is not available then the sample from next batch to be sent. The

manufacturer/ his authorized representative shall witness the test at LERC for the new

sample and a second sample (if feasible as per equipment or the test) taken from the

originally tested equipment that failed in the test. In case the repeat sample fails, OITC

/Concerned OMC Dept shall advise action to be taken on the manufacturer as per the

QDG and the stock of that particular batch lying at different plants shall be scrapped.

The manufacturer shall carry out root cause analysis and take corrective action at their

unit so that the defects do not recur. The manufacturer will also be required to submit

the root cause analysis and action taken report to OITC/Concerned OMC Dept.

However, even if the repeat sample passes, OITC/OMC shall decide if the batch is to

be scraped based on the criticality of the non-conformity.

c. In addition to the above, the Manufacturer shall provide OMCs with indemnity bond

as per format given in tender /or made available.


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CHAPTER – 5: GENERAL GUIDELINES

1. Besides the above, the competent Authority of the concerned Oil Company can take any

appropriate action against the erring Manufacturer, if deemed necessary, including

holiday listing/de-listing in the first or any instance of irregularity.

2. Treatment in case of Multiple non-conformities: In case multiple quality non-conformities

are observed in an equipment, action will be taken on the erring manufacturer as per the

norms mentioned for the highest category of non-conformity established i.e. the order of

precedence for action to be taken will be “Critical” over “Major” and “Major” over “Minor”.

Accordingly, there will be only one action for all irregularities established in one instance.

3. Under existing laws, Control Orders of various authorities of Central Government/State

Government/Statutory bodies – in addition to OMC Officers – are empowered to carry out

checks of the Manufacturer’s unit for determining and securing compliance with such

laws/Control Order. If any “malpractice or non-conformity” is established by such

authorities after checking, the same would also be taken as a “violation” under these

guidelines and prescribed punitive action would be taken by the Oil Company, on receipt

of advice from such authority. In the meantime, if the OMC on its own detects a

malpractice or non-conformity of the same nature; action is to be taken under QDG

independent of the case pending with the Government Authority.

4. Any pending penalty shall be recovered from the running bills/ PBG/ security deposit

under intimation to the Manufacturer as per the practices followed by individual OMCs.