Signature Not

Verified
Digitally signed by
PRIYANKA GHOSH
Date: 2022.02.14
17:06:19 IST
Reason: IREPS
Document
Location: IREPS-CRIS

मे टो रे लवे, कोलकाता/METRO RAILWAY/KOLKATA

भं ड़ार िवभाग/STORES DEPARTMENT

GENERAL TENDER CONDITIONS:-

NOTE:
1) Tenderers are required to refer to the Instructions to Tenderers for e-Tenders.
2) These conditions will be applicable for Tenders published on or after the date of uploading of
new/revised conditions.

TABLE OF CONTENTS

1.0 ACCEPTANCE OF THE OFFERS PAGE-2

2.0 SPLITTING OF TENDERED QUANTITY PAGE-2

3.0 PROCUREMENT FROM APPROVED SOURCES PAGE-4

4.0 PURCHASE/PRICE PREFERENCE CLAUSE PAGE-6

5.0 QUOTATIONS FOR IMPORTED ITEMS PAGE-6

6.0 PAYMENTS TERMS PAGE-7

7.0 INSPECTION CLAUSE PAGE-11

8.0 TERMS OF DELIVERY PAGE-12

9.0 DELIVERY SCHEDULE PAGE-12

10.0 CARTEL FORMATION PAGE-12

12.0 WARRANTY BANK GUARANTEE PAGE-13

13.0 MARKING OF MATERIAL SUPPLIED PAGE-13

14.0 PROCUREMENT FROM MANUFACTURERS AUTHORIZED

AGENTS/DISTRIBUTORS PAGE-13
15.0 BENEFITS TO MSE/STARTUPS (WHETHER MSES) OR
OTHERWISE AS PER PUBLIC PROCUREMENT POLICY PAGE-14
16.0 PAYMENT THROUGH NEFT/RTGS PAGE-16

17.0 FORCE MAJEURE CLAUSE PAGE-16

18.0 REQUIREMENT OF BIS CERTIFICATION FOR RAW PAGE-16

MATERIALS
19.0 CASE WHERE L1 BIDDER WITHDRAWS PAGE-17

20.0 REVERSE AUCTION PAGE-17

21.0 SPECIAL CONDITIONS OF CONTRACTS FOR HANDLING OF

REJECTION OF PRE INSPECTED ITEM AND WARRANTY PAGE-18
REJECTIONS

Signature Not 22.0 SPECIAL TENDER CONDITIONS FOR GST PAGE-22

Verified
Digitally signed by
PANKAJ KUMAR Page 1
Date: 2021.11.23
13:35:48 IST
Reason: IREPS-CRIS
Location: New Delhi
1.0 Acceptance of the Offers:
The Controller of Stores is not bound to accept the lowest or any offer nor to assign any reason for
doing so and reserve to himself the right to accept any offer in respect of the whole or any portion
of the item specified in the tender and contractor shall be required to supply at the rate quoted.
1.1. Railways reserves the right to cancel the tender for full or part quantity tendered without assigning
any reason. The rates quoted by the tenderers for the full quantity would be taken as valid.
2.0 Splitting of tendered quantity:

2.1 Case of no prior decision to split the order -

2.1.1 Normally full order should be placed on L-1 firm. However, if after due processing, it is
discovered that the quantity to be ordered is more than what L-1 alone is capable of supplying
and there was no prior decision to split the quantities, then this aspect should be recorded in TC
Minutes / acceptance in direct acceptance cases. The quantity being finally ordered will be
distributed among the other bidders in a manner that will be fair, transparent and equitable. The
manner of splitting will take specific note of the following parameters
(i) Past Performance of bidders
(ii) Capacity of bidders
(iii) Delivery requirements in the tender
(iv) Quantity under procurement
(v) Vital / Safety nature of the items.
2.1.2 In the absence of any differentiation on the above parameters, the manner of splittings will be
based on the stipulation given in para 2.2.2. below.
2.2 Case of pre-decided split ordering –

2.2.1 Railway may decide in advance to have more than one source of supply on account of delivery
requirement in tender, past performance and capability of bidders, quantity under procurement
and vital/safety nature of items.
2.2.2 Following provisions (2.2.2(A) to 2.4) shall be applicable in all such cases of pre-decided split
ordering –
(A)The Purchaser reserves the right to distribute the procurable quantity on one or more
of the eligible tenderers. Zone of consideration of such eligible tenderers will be the
right of the Purchaser. The zone of consideration will be a dynamic mix of inter-se
position of firms, supply performance of the firms, quantity being procured, critically of
and lead time of supply of the item, number of established suppliers, their capacity etc.

Page 2
 (B)Whenever such splitting of the procurable quantity is made, the quantity
distribution will depend (in an inverse manner) upon the differential of rates
quoted by the tenderers (other aspects i.e. adequate capacity-cum-capability,
satisfactory past performance of the tenderers, outstanding orders load for the
Railway making the procurement, quoted delivery schedule vis -a -vis the delivery
schedule incorporated in the tender enquiry etc., being same/similar) in the manner
detailed in the table below:

Price differential between L1 Quantity distribution ratio between L1 and

and L2 L2

Upto 3% 60 : 40
More than 3% and upto 5% 65:35
At least 65% on the L1 tenderer. For the
quantity to be ordered on the L2 tenderer,
More than 5% TC/TAA shall decide.

In the phrase ‘differential rates quoted by the tenderer’, the quoted rate would mean

(i) When no price negotiation has been called for, the original rates as obtained
at the time of tender opening. However, the rate of the highest eligible
tenderer within the zone of consideration has to be per se reasonable.
(ii) When price negotiation has been called for, the reference L1 rate for assessment of
ratio will be the original rate of L1 firm (suitable for bulk quantity) – say firm “A”
- as obtained at the time of tender opening.
B (I) If splitting of quantity is required to be done by ordering on tenderers higher than
the L2 tenderer, then the quantity distribution proportion amongst the tenderers
will be decided by transparent/logical/equity based extrapolation of the model as
indicated in above Para.

2.2.3 In cases of pre-decided splitting if the purchaser decides not to split the ordered
quantity, the reason for the same should be recorded in TC minutes/acceptance in
direct acceptance cases.

2.3 For cases where the Rlys/PUs had entered into ToT/JV agreements, the following
clause should be stipulated as tender conditions.
As the Rly. has entered into ToT/JV agreement with………no.of firms, they reserve
the right to place orders on all such ToT/JV agreement partners. However, for
ratio/proportion of quantity distribution among such agreement partners, conditions as
detailed in Para 2.2.2 (b) shall apply with the exception that the aspect of ‘per-se
reasonability’ will not be applicable.
2.4 In the cases of inadequate Capacity-cum-capability, dissatisfactory past performance,

Page 3
 large quantity of outstanding orders (liquidation of which will take very long time)
etc., the Purchaser shall have the right to distribute the procurable quantity amongst
tenderers with due consideration to these constraints and in such a manner that would
ensure timely supply of material in requisite quantity to meet the needs of operation,
maintenance, safety etc., of the Railways, regardless of inter-se-ranking of the
tenderers and in a fair and transparent manner with due conformity to the Principles
of Natural Justice and Equity.
2.5 Quantity Option Clause - For tenders valuing Rs.75 lakhs and above, the purchaser shall have
the right to increase or decrease the ordered quantity by a quantity not exceeding 30% of the
ordered quantity on the same price and terms and conditions during the currency of the contract,
with suitable delivery schedule for the enhanced quantity. The purchaser can vary the order quantity
by exercising the option clause during the currency of the contract giving reasonable time / notice
for executing such increase or decrease. Option clause can be exercised up to last date of scheduled
DP Mentioned in purchase order, even if the supply of original ordered quantity is completed before
the last date of scheduled delivery.

3.0 Procurement from Approved Sources :

3. 1 Approved by RDSO:
3. 1.1 Wherever necessary, as per policy of procurement, bulk purchases will be made only
from those firms who have been approved by RDSO for such ordering before opening of
tender. The tenderers are to attach scanned copies of RDSO approval letters along with
their offer. The status of the firm will be reckoned as on the date of tender opening and
not there after.
3. 1.2 However, cases of downgrading/removal/suspension/banning etc. after Opening of
tender shall be taken into account while considering the offers.

3.1.3 Wherever, RDSO has assessed the capacity cum capability of the firm and has
cleared the source as RDSO vendors for placement of developmental orders,
developmental order upto 20% of NPQ may be placed on such sources.

(a)Developmental Vendors shall be eligible for developmental order of 20% of

NPQ in regular tenders. Total quantity to be ordered on developmental
sources Shall be limited up to 20% of NPQ in regular tenders.

(b)Approved Vendors shall be eligible for bulk order, as per

predefined tender conditions.

(c)1) Where there are not more than three Indian Suppliers categorized as
Approved Vendor for a particular item,developmental vendors can be
considered for placement of bulk order without any quantity restrictions.
However, while considering such vendors,factors including past
performance, capacity, delivery requirements quantity under procurement,
nature of item, outstanding order load etc. Shall be considered in a
transparent manner, subject to rates being reasonable.Quantity allocation
among eligible vendors shall be based on pre decided tender criteria. Such
orders shall be treated as bulk orders.

2) A supplier or bidder shall be considered to be from India if:-

Page 4
 i) The entity is incorporated in India, or
ii) A majority of its shareholding or effective control of the entity is
exercised from India, or
iii) more than 50% of the value of the item being suppllied has been added
in India.

3.1.4 Wherever the vendor approving agency (Other than RDSO)has not
classified any of the vendors for placement of developmental order,
developmental order may be placed upto 20% of the NPQ on
unregistered/untried firms about whom Railway is prima facia satisfied that
they are capable of executing the order. This 20% quantity will be within
the NPQ. However,there may be some case of procurement of materials
where Railways may not be willing to undertake the risk of failure on the
part of the supplier on whom the development orders have been placed. In
such cases. Railway may go in for increased purchase quantity and keeping
in view budgetary and other aspects so that 100 per cent order could be
placed as a developmental order outside the NPQ. This is subject to:-

a) Such tendering firms which are not approved by vendor approving

agency (other than RDSO) for placement of developmental orders must
submit their credentials details i.e. Machinery & Plant, Testing facilities,
QAP, Technical Man power etc.

b) Such offers are technically suitable.

c) Credential of the firms i.e. firms who have submitted adequate evidence
towards their capacity-cum-capability, past performance etc. and prima facia
the Railways are satisfied that the Tenderer is capable of executing the orders
but whose capacity to supply bulk quantity has not been established in the past,
the capacity-cum-capability claimed/exhibited in their offers submitted, will be
verified by the Railways wherever considered necessary before placement of
Purchase Order on unapproved firms either by deputing their representive or
by engaging agencies of RDSO/RITES etc., at the discretion of Railways.

d) Failure to furnish requisite credentials details i.e., machinery and plant,

testing facilities, QAP, technical manpower etc., will make the offer liable
to be ignored.

3.2 Approved by DLW/CLW/ICF/CORE/RCF/CME/CEE-METRO RLY:

Same conditions shall apply as in the case of RDSO approved sources as detailed
in Para 3.1 above with the exception that wherever “RDSO” is appearing, the same
should be replaced by “DLW/ CLW/ ICF/ CORE/ RCF/CME/CEE-METRO
RLY.”
3.3. Procurement of materials falling in the category other than those in Para 3.1 and 3.2
above:

Page 5
 In these cases, the Railways reserves the right to make bulk procurement from the
tenderers who conform to/comply with the eligibility criteria (as detailed in the special
conditions of tender) whereas developmental orders may be considered for
placement on other sources whose offers are competitive and who have submitted
adequate evidence towards their capacity-cum-capability and prima facie the
Railways are satisfied they are capable of executing the orders but whose capacity to
supply bulk quantity has not been established in the past.

4.0 Purchase / Price Preference Clause:

The purchaser reserves the option to give a purchase / price preference to the offers
from Public Sector units and /or from Small Scale/Cottage Industries Units, over those
from other firms, in accordance with the policies of the Govt. from time-to-time. The
price preference above cannot however, be taken for granted and every endeavor need
be made by them to bring down cost and achieve competitiveness.
5.0 Quotations for Imported items:
5.1. Quotations in Foreign Currency:
5.1.1. Please note that, in case of Quotations in Foreign Exchange
the firms should quote on FOB basis.
5.1.2. Any additional expenditure incurred by the purchaser on account of
increased Custom Duty, Freight charges as also extra cost which
may arise on account of Variation in Exchange rate during the
extended delivery schedules, shall be borne by the Contractor.
5.2. Imported Stores offered by Indian Agents in Indian Currency:
Any authorized dealer / agent / recognized industrial distributor quoting on behalf of
their foreign principal in Indian Rupees shall have to comply with the following:-
1. To quote with authorization from the foreign manufacturer.
2. (i)While quoting on behalf of foreign principals tenderers are
required to furnish the principal’s invoice/ proforma invoice
along with their quotation.
(ii) Proforma invoices however, may be accepted in exceptional cases
where, it is not possible to obtain the invoices before the contract
is placed.
3. The tenderer shall have to undertake in the tender to comply with the following
a) Consent to furnish copy of customs out passed bill of entry for the
goods, relevant to each consignment Manufacturer’s Test and
Guarantee certificate issued by the manufacturer, Copy of Bill of
Lading/AWB relevant to the consignment; Copy of commercial
invoice of the foreign manufacturer/principals relevant to each
consignment.
b) Current and valid authorization/dealership certificate of
foreign manufacturer/principal.

Page 6
 c) Compliance of sea/air worthy packing condition in manufacturer’s
original packing with manufacturer's tamper proof seal and compliance
of the Packing condition as laid down in IRS Conditions of Contract
Para- 1800. Failure to comply with any of the aforesaid conditions as
referred above will make the offer liable to be rejected.
4. Tenderer has to indicate the following while submitting the offer:
(a) The precise relationship between the foreign
manufacturer/principal and their agents/associates.
(b) The mutual interest which the manufacturer/principal and the Indian
agent/associates have in business of each other is to be indicated.
(c) Indian agent’s Permanent Account Number is to be indicated.

5. Any additional expenditure incurred on account of Customs Duty and exchange

rate variation during pendency of the Contract will be on contractor’s account.

6. For bearings manufactured in foreign countries, Visual inspection by RITES inside

India after receipt is acceptable with import documents and original manufacturer's
test and Warranty/ Guarantee certificate. Firm should consent to deposit security
money as per IRS conditions for due execution of the contract if asked to do so.
This is irrespective of the fact whether the firm is registered with this Railway or
not.
6.0 Payment Terms:
6.1 Payment for the stores or each consignment thereof will be made to
the contractor on submission of bill accompanied by the prescribed
documents mentioned in the contract.
6.2 95% payment for the stores or each consignment thereof will be made
against Inspection Certificate and proof of dispatch. For dispatch of
material by road, it is the challan of the supplier duly certified
by the consignee Gazetted Officer towards receipt of material at
consignee’s end will constitute the proof of dispatch for the purpose of
payment. For rail dispatch, clear and unqualified RR/PWB may be
considered as the proof of dispatch.

6.3 For balance 5%, payment will be made on receipt and acceptance of
stores by the consignee, signified by granting of Receipt Note. In
other words, balance 5% payment shall be made against Receipt Note.
6.4 However, in this connection it is to be made clear that for orders valuing
upto Rs.5 lakhs, no advance payment will be made and only 100%
payment will be made against receipt and acceptance of the material by
the consignee i.e., against Receipt Note.

Page 7
 6.5 In deserving cases, 98% / 2% payment can also be considered within the
framework of extant rules and procedures.

6.6 For Machinery & Plant items: 80% payment will be allowed after receipt
of the machine in good and acceptable condition at consignee’s end
against inspection certificate and the supplier’s challan certified by the
consignee Gazetted Officer. Balance 20% payment will be made on
successful installation, commissioning and testing of the machine and
also furnishing of a Bank Guarantee towards warranty obligations of the
contractor for 10% of the value of the machinery or plant.
6.7 Discounts / rebates linked with early payment and / or early granting of
Receipt Note etc within specified days will not be considered for
determination of inter-se ranking of the offers. However, the Railways
reserves the rights to avail themselves of such rebates / discounts.

6.8 For MSME Firms:

i)100% payment on or before 45th day from the date of delivery of

goods/services along with inspection certificate at the nominated
place/Depot in good condition by the consignee.
ii)Where the department makes any objection in writing regarding
acceptance of goods or services within fifteen days from the date of
the delivery of goods at the nominated place/Depot,the 100%
payment will be made on or before the 45th day from the day on
which such objection is removed by the employer.
iii)If a micro or small enterprise firm has not submitted any
documentary evidence along with the tender documents to prove its
status of micro or small enterprise, it would not be admissible to
claim any benefit under the MSMED Act 2006 against the orders
placed in this tender.

6.9 Mode of payment through Letter of Credit(LC) as option in

Supply/Works contracts: (APPLICABLE ONCE IMPLEMENTED)

1. Ministry of Railways has decided that henceforth, all Tenders invited by Zonal Railways
and Production Units, both for Supplies/ Works (including all service and maintenance
contracts), having estimated value of Rs 10 lakhs and above, shall include in tender
conditions, an option for the supplier/contractor to take payment from Railways through a
letter of credit (LC) arrangement. This would be subject to the following:
(i) The bidder, at the time of bidding itself, shall exercise an option in writing, in favour
of taking payment due against the said tender, through LC arrangement.
(ii) The option so exercised, shall be an integral part of the bidder’s offer. Option once
exercised shall be final and no change shall be permitted, thereafter, during the course
of execution of contract.
(iii) The incidental cost towards issue of LC and operation thereof (LC operating charges,
including bank charges for opening of LC) shall be borne by the supplier/contractor.

Page 8
(iv) The above arrangement should be made a part of the Tender conditions and Contract
conditions.
(v) The LC will be a sight LC.

2. The Banker for Railways for the ensuing one year, for opening domestic letters of credit
shall be State Bank of India through its branches. The arrangement would cover all such
contracts finalized against tender issued in the said year and shall extend till final
execution of these contracts.
3. The schedule of payment liability arising in the contract shall be established by the
Railways based on the prescribed delivery schedule/stages of supply/work, in
consultation with supplier/contractor. The Railway’s Banker should also be involved in
the process to assess value of LC and terms and conditions of LC.
4. The LC condition of Railways shall inter-alia provide that Railways will issue a Document
of Authorization (format enclosed as Annexure-II) on claims preferred by
supplier/contractor, for completed Work/Supply to enable them to claim the authorized
amount from their Banker. The Document of Authorization will be issued against each
Bill submitted for payment by supplier/contractor, after exercising laid down checks as
per Railways’ Codes and Manuals, in executive and accounts branches. The Accounts
Officer responsible for passing the claim will issue the Document of Authorization. Issue
of Document of Authorization will be captured in IPAS and IREPS to ensure that there is
no duplicate payment against the said Bill and also to enable the supplier/contractor to
view status of the claim. The Letter of credit signed between the bank and Railway
should specifically mention that any excess/wrong payment made by the bank and later
detected by the Railways, will be recovered from the bank.
5. The Railways will ensure that Document of Authorization is generated well within the time
prescribed. Non issue of Document of Authorization must be communicated, with
reasons thereof, to concerned supplier / contractor electronically.
6. The supplier/contractor will present the Document of Authorization to his/her Banker for
necessary payments as per LC terms and condition. After release of payment to the
supplier, the banker of the supplier/Contractor will send this Document to the Railways’
Banker for release of payment to them (supplier’s Banker). The Railway’s Banker will
reimburse, claim made by Banker of supplier/contractor, against original Document of
Authorization after verifying signatures of authorized signatory of Railways and Bill of
Exchange issued by contractor/supplier.
7. The LC charges paid by the Railways for opening and operation of LC shall be
charged to the relevant expenditure head:
Misc Advance (LC charges paid to bank) Dr.
Misc. Adv GST (IGST/CGST/ SGST) Dr
Cheques & Bills Cr
The amount of GST paid shall be available for set off against output liability.
8. On issue of Document of Authorization, following accounting entries shall be made:-
Relevant Expenditure head Dr.

Misc. Adv. Cr.

(Clearance of LC charges paid to bank from LC operating charges collected from party
GST on incidental charges shall he paid by the party on reverse charge basis)

Page 9
 Sundry Other Earnings - Cr
(Amount recovered over and above LC charges paid to Bank)
Demands Payable/ Misc Advance Cap* Cr.
(As the case may be- as per letter authorization - *Demands Payable for
Revenue and Misc Advance Cap for capital transaction)
An invoice shall he issued against party for collecting the incidental charges at
the time of issue of Document of Authorization.
9. The reimbursement procedure in case of accredited banks selected as Railways’ banker
will be directly debiting the amount to the government account through scrolls. In case of
non-accredited banks, the Accounts Officer concerned while authorizing a non-
accredited bank to open LC will send copy of their letter to RBI/ Public Accounts
Department / Mumbai and after verification/checks regarding authorization, RBI/ PAD
will forward the papers to RBI/ CAS/ Nagpur with appropriate instructions for debiting
Govt. account and make reimbursement to the paying bank on demand. After making
the payment, the non-accredited bank authorized to open LC will send documents and
also Accounts Officer’s letter in original to RBI/CAS /Nagpur for debiting Govt account
and getting reimbursement. After making payment to the party, the paying bank will also
send a copy of the scrolls/documents to the PAO who issued the authorization for
opening of LC. A copy of the scroll will also be send to Local Point Branch of the bank
for settlement and reporting as per extant system in vogue. The scroll should contain
LCDA no. on scroll to facilitate reconciliation. Daily MIS thereof shall also be sent to
CRIS.
10. On receipt of debit scrolls /documents, the Accounts Office will conduct necessary
checks and debit Demands Payable /Misc. Advance (Cap) by credit to suspense head
8660-PSB Suspense. This suspense will be cleared by the Accounts Officer on receipt
of the clearance memo from CAS/Nagpur.
11. The Railways will get confirmation from their Banker once the payment is released to
supplier's/contractor's Banker. Acknowledgment will be placed in Purchase
Order/Contract file and Contractors ledger and works Register/ Purchase Suspense
Ledger will be updated accordingly.

12. Instructions for tenderers on LC mode of Payments:- Scheme of Letter of Credit for
Domestic Supplies (including all service and maintenance Contracts) tenders, having
estimated value of Rs.10 lakhs and above.
a. All Tenders invited by Zonal Railways and Production Units, having estimated value of
Rs.10 lakhs and above.
b. The LC will be a sight LC.
c. The bidder, at the time of bidding itself, shall exercise an option, in favour of taking
Payment due against the said tender, through LC arrangement, the option so exercised,
shall be an integral part of the bidders offer.
d. Option once exercised shall be final and no change shall be permitted, thereafter,
during execution of contract.

Page 10
 e. The incidental cost @0.15% of LC value, towards issue of LC and operation thereof shall
be borne by the supplier/contractor and shall be recovered from their bills.
f. State Bank of India through its branches shall be the Banker for Railways for opening
domestic letters of credit for ensuing year. The arrangement would cover all such
contracts finalized against tender issued during the said period and shall extend till final
execution of these contracts.
g. The schedule of payment liability arising in the contract shall be established by the
Railways based on the prescribed delivery schedule/stages of supply.
h. The acceptable, agreed upon document for payments to be released under the LC
so opened shall be a Document of Authorization.
i. The supplier/contractor shall submit their bills for completed supply to the bill processing
authority mentioned in supply/contract agreement to issue Document of Authorization to
enable supplier/contractor to claim the authorized amount from their Banker.
j. Accounts officer responsible for passing the claim will issue the Document
of Authorization.
k. The supplier/contractor shall take print out of the Document of Authorization available on
IREPS portal and present his claim to his banker(advising bank) for necessary payments
as per LC terms and conditions. The claim shall comprise LC Document of Authorization,
Bill of Exchange and invoice.
l. The bank shall also recover any amount as may be advised by Railway against the
contractor/supplier.
m. The contractor/vendor shall indemnify and save harmless the railway from and against all
losses, claims and demands of every nature and description brought or recovered against
the Railways by reason of any act or omission of the Contractor/Vendor, his agents or
employees, in relation to the letter of Credit(LC). All sums payable/borne by Railways on
this account shall be considered as reasonable compensation and paid by
Contractor/vendor.
7.0 Inspection Clause:
(a) Material peculiar to Railways such as parts and fittings of rolling
stock except raw material, which have been found rectified during
inspection and which could not be rectified, are required to be defaced by
the inspecting authority to avoid recycling of such rejected material and to
avoid ultimate failures to assets. All such rejected materials peculiar to
Railways should be mechanically defaced to prevent sale to Railways
again.
(b) (i) Material to be pre-inspected by RDSO or RITES at Railways option, or
as stated in this Tender Enquiry. Tenderers are advised to quote
accordingly. At a later date any request for change in
inspection clause will not be considered.
(ii) In case the firm fails to offer the material for inspection against call
issued to the inspecting agency or if the material have to be re-
inspected due to rejection of the material at firms premises by the
inspecting agency or due to non dispatch of material within validity of
Inspection Certificate then 50% of the inspection charges applicable
for the offered quantity subject to maximum of Rs 5,000/- and actual
cost of the test charges incurred will be paid by the supplier to the
inspecting agency.

Page 11
 (iii) Traders/ authorized agents are required to offer material for
inspection preferably at manufacturer’s premises only.
(c) Final inspection and acceptance of the supplied material will be
done by the Consignee after receipt of the material.
(d) The rejected material for exclusive use of Railways will be defaced
to ensure that the rejected item are not recycled and supplied to
other Railways or purchaser.
7.1 Statutory Variation Clause:
Statutory Variation Clause is applicable on all Statutory levies such
as Duties, Taxes etc.during the Original Currency of Contract subject
to production of documentary evidence.
8.0 Terms of Delivery:
(a) Mode of dispatch should be by road.

(b) Suppliers should clearly quote-FOR Conditions i.e. station of

dispatch or destination. If firm's offer is FOR Destination then
applicable freight charges should be clearly indicated, if not
inclusive in offer.
(c) Transit Insurance for risk in transit should be arranged by the supplier,
since risk in transport in all such cases rests with the supplier.
9.0 Delivery Schedule:
(a) The tenderers are to note the Railway’s required delivery schedule
given in the Tender schedule/ Offer Form and quote accordingly.
Vague Delivery terms like 2/ 32 weeks etc must be avoided and if
quoted will be taken as commercially unresponsive to railway’s
requirement.
( b ) Liquidated Damage (LD) on delayed supply:
Recovery of Liquidated shall be levied @1/2%(half percent) of
the price of the store per week or part of the week during which
delivery is accepted and the upper limit for recovery of LD in
supply contracts is 10%(ten percent) of the value of contract
irrespective of delays, unless otherwise provided, specifically in
the contract.
10.0 Cartel Formation:
(a) Whenever all or most of the approved firms quote equal rates and
cartel formation is suspected, Railways reserves the right to place
order on one or more firms with exclusion of the rest without
assigning any reason thereof.

(b) Firms are expected to quote for a quantity not less than 50% of the
tendered quantity. Offers for quantity less than 50% of tendered

Page 12
 quantity will be considered unresponsive and liable to be rejected in
case Cartel Formation is suspected. Railways however reserve the
right to order on one or more firms any quantity.
(c) The firms who quote in cartel may be warned that their names are
likely to be deleted from list of approved sources.
(d) Whenever tender is floated with purchase restriction from sources
approved by nominated authorities and there exists a suspected Cartel
situation by approved sources or the rates available from approved
source/sources are adjudges unreasonably high, despite fair efforts as
permissible, the purchaser reserves the right to place orders on firms
outside the approved vendors list, without any restrictions.
.

11.0 DELETED.

12.0 Warranty Bank Guarantee:

For items like machinery and Plant, Costly equipment, capital Spares , the
tenderer will have to furnish a warranty Bank Guarantee of 10% of
Material value to cover their warranty obligation. The Format of the
Warranty bank guarantee is enclosed herewith as annexure-I.

13.0 Marking of Material Supplied:

The tenderer should agree to indicate the Manufacture’s Name, Month and
Year of manufacturing by casting/stamping/etching/embossing, at an
appropriate place of each piece supplied, without affecting the functional
utility and structural stability of the components/material.

14.0 Procurement from Manufacturers authorized agents/ Distributors:

Only Manufacturers or their authorized dealers/ distributors need to quote with

authorization from the manufacturers failing which offers are liable to be
ignored. Where a manufacturer appoints an agent or a distributor on the basis
of a written agreement with him for a specific territory or specific set of items,
he shall give an undertaking to the following effect.
1. Inspection by RITES/RDSO at the manufacturing premises of the relevant
manufacturer. RITES/RDSO shall categorically confirm in the Inspection
Certificate, that inspection of the material has been actually made in the
manufacturing premises of the manufacturers and not in the ware house/
godown, Shop of the dealer.

2. Direct dispatch from the premises of the manufacturer to the Railways

consignee after inspection and acceptance by RITES/RDSO.
3. Submission of manufacturer’s Test and Guarantee Certificate with each lot
of supplies.

Page 13
 4. The authorised agents/distributors price will not exceed that which
the manufacturer would have quoted.
5. (a)(i)In a tender, either the Indian agent on behalf of the Principal/OEM or
Principal/OEM itself can bid but both cannot bid simultaneously for the
same item/Product in the same tender.

ii)In a tender, if Indian agent on behalf of the Principal/OEM or

Principal/OEM bids simultaneously for the same item/product in the
same tender,then both the offers will be considered ineligible and will be
Summarily rejected.

(b)(i)If an agent submits bid on behalf of the Principal/OEM, the same

agent shall not submit a bid on behalf of another Principal/OEM in the
same tender for the same item/product.

(ii)If an agent submits bids on behalf of the Principal/OEM and also on behalf
of another Principal/OEM in the same tender for the same item/Product, then
both offers will be considered ineligible and will be summarily rejected.

(c)In view of the above, Manufacturer may note that an agent can represent only
one firm in a tender and any manufacture cannot submit more than one offer
against a tender through different sole selling agents or one offer directly and
other offers through sole selling agents, in other words, in a tender, either the
Indian agent on behalf of the Principal/OEM or Principal/OEM itself can bid but
both cannot bid simultaneously for the same items/product in the same tender.
In such a situation all the offers will be rejected. Also a “100% Indian
Subsidiary” of the the foreign firm cannot bid through another agent. The
relation between the Principal/OEM & Agent or Indian Subsidiary(100% or
otherwise) should be contractually established and clear.

(d) The above conditions shall apply for all types of Tenders.

(e) DELETED.

15.0 Benefits of MSE/Startups(whether Micro & Small Enterprises(MSEs)

or otherwise as per Public Procurement Policy.

The Public Procurement Policy envisages extending certain benefits/preferential

treatment to MSEs and making efforts for development of appropriate vendors and
enhancement of their participation in government procurements. In order to avail
themselves of such benefits and preferential treatment, the MSEs must be registered
with any of the following:-

Page 14
 (i) District Industries Centers
(ii) Khadi and Village Industries Commission
(iii) Khadi and Village Industries Board
(iv) Coir Board
(v) National Small Industries Corporation
(vi) Directorate of Handicraft and Handloom
(vii) Any other body specified by Ministry of MSME.
(a). In pursuance of the Public Procurement Policy on MSE, it has been decided that

(i) Tender sets will be provided free of cost to MSEs registered with the
above agencies for the item tendered.
(ii) MSEs registered with the above agencies for the item tendered will be exempted
from Payment of Earnest Money.
(iii) In tenders, participating MSEs quoting a price within price band of L1 + 15%
shall be allowed to supply a portion of the requirement by bringing down their
price to L1 price in a situation where L1 price is from someone other than a MSE
and such MSEs can be together ordered upto 25% of the total tendered value.
(b) (I) MSEs who are interested in availing themselves of these benefits have
to enclose with their offer the proof of their being MSE registered with
any of the agencies mentioned in the notification of Ministry of MSME as
indicated below.
(i) District Industries Centers
(ii) Khadi and Village Industries Commission
(iii) Khadi Village Industries Board.
(iv) Coir Board
(v) National Small Industries Corporation
(vi) Directorate of Handicraft and Handloom
(vii) Any other body specified by Ministry of MSME.

(II) The MSEs must also indicate the terminal validity date of their registration. Firm
failing to submit the information as indicated in para b (i) and (ii) above, such offers
will not be liable for consideration of benefits detailed in MSE Notification of
Government of India dated 23.03.12.
(c) (i) In exercise of Para 16 of Public Procurement Policy for Micro and Small
Entrprises order 2012, the condition of prior turnover and prior experience with
respect to Micro and Small Enterprises in all Public Procurement is relaxed
subject to meeting of quality and technical specifications.
(ii) Prior turnover and prior experience in Public Procurement to all Start-ups(whether
Micro & Small Enterprises(MSEs) or otherwise) is relaxed, subject to meeting of
quality and technical specifications in accordance with the relevant provisions of
GFR 2005.

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 (iii)However, there may be circumstances (like procurement of items related to
Public safety, health, critical security, Operation and equipments etc.) where
procuring entitles may prefer the vendors to have prior experience rather than giving
orders to new entitles. For such procurement, wherever adequate justification exists,
the procuring entitles may not relax the criteria of prior experience/turnover for the
startups.
16.0 Payment through NEFT/RTGS
National Electronic Fund Transfer is mandatory. All payments are made only
through NEFT/RTGS.
17.0 Force Majeure Clause:

Force Majeure is an event beyond the control of the Supplier and not involving the supplier’s
fault or negligence and which is not foreseeable. Such events may include, but are not
restricted to acts of the purchaser either in its sovereign or contractual capacity, wars or
revolutions, hostility, acts of public enemy, civil commotion, sabotage, fires, floods,
explosions, epidemics, quarantine restrictions, strikes, lockouts and freight embargoes. This
should not be used by a party to effectively to escape liability for bad performance.
If there is delay in performance or other failures by the supplier to perform its obligation
under the contract due to event of a Force Majeure, the supplier shall not be held responsible
for such delays/failures.
If a Force Majeure situation arises, the supplier shall promptly notify the purchaser in writing
of such conditions and the cause thereof within 21 days of occurrence of such event with
reasonable evidence thereof.
Unless otherwise directed by the Purchaser in writing, the supplier shall continue to perform
its obligations under the contract as far as reasonably practical and shall seek all reasonable
alternative means for performance not prevented by the Force Majeure event.

If the performance in whole or in part or any obligation under the contract is prevented or
delayed by any reason of Force Majeure for a period exceeding 60 days, either party may at
its option terminate the contract without any financial repercussion on either side.
“There may be a Force Majeure situation affecting the purchase organization only. In such a
situation the purchase organization will take up with the supplier on similar lines as
mentioned above. “

18.0 Requirement of BIS Certification for raw Materials:

If the specification of material used to manufacture the tendered item comes
under the mandatory certification of BIS,(the details of mandatory
certification are indicated on the Bureau of Indian standards(BIS) website-
www.bis.org.in under “Product Certification” _ Mandatory Certification” the
firm will ensure the purchase of material from the sources which are having
BIS License and with ISI mark. The necessary related documents will be
required to be submitted by the firm if the same is asked for by inspecting
agency or any third party. The firm will produce the trail of documents and

Page 16
 test certificates to show that the said item has been sourced from BIS license
and with ISI mark. This will be applicable to individual item and/ or a part in
the assembly/ Fabricated item. ISI stamp should be demonstrated by the
vendor/supplier/ Contractor on the item or its salvage, which should be
available in vendor’s Premises.

19.0 Case where L1 Bidder withdraws:

If the bidder, whose bid has been found to be the lowest evaluated bid withdraws
or whose bid has been accepted,fails to sign the procurement contract as may be
required, or fails to provide the security as may be required for the performance of
the contract or otherwise withdraws from the procurement process, the procuring
entity shall cancel the procurement process. Provided that the Procuring Entity, on
being satisfied that it is not a case of cartelization and the integrity of the
procurement process has been maintained, may for cogent reasons to be recorded
in writing, offer the next successful bidder, and if the offer is accepted, award the
contract to the next successful bidder at the price bid of the first successful bidder.
20.0 Reverse Auction:
1. Technical Bid and Initial Price Offer:

i. Bidder will be simultaneously required to submit a Technical & Commercial Bid and Initial
Price offer. Offers found eligible for bulk order shall be categorized as qualified for bulk
order for the purpose of RA, offers found eligible for developmental order shall be
categorized as Qualified for Development order for the purpose of RA.
ii. Offers not complying with essential technical & commercial requirements of
the tender shall be declared as Ineligible for any order.
iii. Initial Price Offer of only those bidders categorized as Qualified for Developmental Order
or qualified for Bulk Order, shall be opened and tabulated by system separately,
category wise. Extent instructions for tabulation shall apply for tabulation of Initial Price
Offers.
2. Financial Bid: Financial Bid shall comprise of Final Price offer obtained through Reverse
Auction. Following conditions and procedure will be followed in selecting the bidders for
conduct of Reverse Auction.

a. Selection of vendors for Reverse Auction for bulk ordering:

Number of Vendors Number of vendors Remarks

Qualified for Bulk to be selected for
Order Reverse Action
Less than or equal All The bids disallowed from participating in
to 5 the Reverse Action shall be the highest
More than 5 and up Number of Vendors bidder(s) in the tabulation of initial Price
to 10 Qualified for Bulk Offer.
Orders minus 2 In case the highest bidders quote the same
highest subject to rate. The initial Price Offer received last, as
minimum 5. per time log of IREPS, shall be removed
More than 10 50% of Vendors first, on the principle of last in first out, by

Page 17
 Qualified for Bulk IREPS system itself.
Order(rounded off to
next integer) subject
to minimum 8.

b. Selection of vendors for Reverse Auction for developmental ordering: All bids found qualified
for Development Order shall participate in Reverse Auction for developmental orders.
c. Maximum time allowed for Reverse Auction, both for bulk ordering or
developmental ordering shall be 05 days.
d. During Reverse Auction process, bidders shall not be allowed to bid a rate higher than
their lowest Initial price offer.
3. Reverse Auction among bids categorized as Qualified for Developmental Order and
Qualified for Bulk Order shall be conducted concurrently on IREPS. Bidders shall only be
able to see the auction screens relevant to them for each category. Purchaser shall be
permitted to see all the auction screens for both categories on line.
4. Developmental order upto 20% of NPQ can be placed by Zonal Railways/PUs on
eligible vendors, Without waiting for capacity/capability assessment by nominated centralized
agency. Capacity/Capability assessment by nominated centralized agency shall be done
subsequent to placement of Developmental order,if not already done. In case a
developmental order is placed prior toCapability/Capacity assessment by
nominated agency developmental order shall be issued with a Condition that
the developmental order is subject to outcome of Capacity/Capability
assessment.

5. Quantity to be covered on developmental orders shall be limited to 20% of the

net Procurable Quantity. The quantity covered on developmental orders may be
within or outside NPQ.

6. After obtaining the final bids of the Reverse Auction, tenders shall be finalized as
per existing Procurement policy and procedures based on the eligibility and
quantity distribution criteria as defined in the tender document.

21.0 Special Conditions of Contract for Handling of

rejection of pre-inspected item and warranty
rejections.
The following conditions for handling of rejection of pre-inspected item and
warranty rejections, are incorporated as special conditions of contract in General
Tender Conditions in IREPS.
21.1 Two kinds of rejection occur in case of pre-inspected supplies made by vendors –
A. Pre-inspected material rejected by consignere at the time of receipt.
B. Material rejected in warranty.

The methodology to handle these rejections are given below.

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A. Pre-inspected material rejected by consignee at the time of receipt

i) In case of rejection of pre-inspected goods at consignee end, the material rejection

advice/ rejection memo should be sent by consignee to all concerned i.e. firm,
purchaser, pre-inspecting agency, paying authority as per the contract etc. without
fail.
ii) Financial Recovery: In case payment has been made to the firm for the material, the
concerned paying authority as per contract should note the rejection advice details in
its recovery register for effecting recovery of payments made, as the case may be.
iii) If the firm desires to have joint inspection, joint inspection of rejected material will be
held with pre-inspecting agency and the firm. In case of failure of either of the two
parties to associate with joint inspection, the joint inspection should be held by the
consignee with whichever of the two parties comes for joint inspection. Irrespective
of whether the party(ies) attend joint inspection or not, the modality of joint
inspection etc will have to be completed within 21 days of communication of
rejection advice to the supplier(in line with IRS Conditions of Contract Clause 703).
For imported material, the time limit will be 45 days.
iv) Firm may be permitted to collect the rejected goods only after the firm has deposited
the payments already made by Railway (if any) to the firm or equivalent amount has
been recovered for this purpose.
v) In case of replacement supply against the rejected goods, the same should be pre-
inspected by same pre-inspecting agency who passed the material earlier. In line
with IRS Conditions of Contract clause 703, no inspection charge will be paid by
Railway to the inspection agency for the replacement supply.
vi) However, in case of component level rejection in an pre-inspected item (which is an
assembly) the replacement supply of that component can be accepted based on firms
internal inspection certificate/guarantee certificate and final inspection by consignee.

B. Material rejected in warranty.

I Material are rejected in warranty in the following situations:

(a) : For Warranty failure in shop / shed of material issued from its
associate stores depot :
All warranty claims will be lodged by the associate depot officer after getting the
warranty rejected material from user under advice note of return stores with reasons
of warranty rejection indicated therein. Before lodging the warranty claim the
associate depot officer will satisfy himself about the correctness of PO and ensure
that other details including reason(s) of warranty rejection are available with the
advice note of return stores. The warranty claim will be processed following

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 procedure indicated in sub-para A(i), (ii), (iii) and (iv) of para 21.1A above except for
the following changes: The ‘rejection advice’ mentioned in para 21.1A(i) will be
replaced by the ‘warranty rejection advice’. The time which can be taken for the
completion of modality of joint inspection as per para 21.1A(iii) will be 45 days
(instead of 21 days) from the date of communication of rejection advice to the
supplier. More time is being given for joint inspection because this is a case wherein
supplies have already been taken into the usage system of Railways. Thus, either the
pre-inspection agency or the firm or the railways may like to have a more detailed
understanding of the failure.

(b) : For warranty failure in shop/shed of material received from PU (either under sale
issue note or as a purchased component of rolling stock manufactured at the PU or
from a stores depot (under inter depot transfer/sale issue note) which is not the
associate stores depot of the end user.
(i) In such cases it may not be convenient for the end user to return the material to the
stores depot (against which the original supply was made by the vendor to railway).
Thus in all such cases, the warranty rejected material will be kept in safe custody by
the end user and the stores depot (which received the original supply) will be
advised by the end user about the warranty rejection duly indicating the reason(s) of
rejection with a confirmation that the rejected material is under end user’s custody.
(ii) The stores depot (which received the original supply) will raise warranty claim on
the firm. Before lodging the warranty claim, the depot officer will satisfy himself
about the correctness of PO and ensure that other details including reason(s) of
warranty rejection are available from the end user. The warranty claim will be
processed following procedure indicated in sub-para A(i), (ii), (iii) and (iv) of para
21.1A above except for the following changes.
The ‘rejection advice’ mentioned in para 21.1A(i) will be replaced by the
‘warranty rejection advice’. The time which can be taken for the completion of
modality of joint inspection as per para 21.1A(iii) will be 45 days (instead of 21
days) from the date of communication of rejection advice to the supplier. More time
is being given for joint inspection because this is a case wherein supplies have
already been taken into the usage system of Railways. Thus, either the pre-inspection
agency or the firm or the railways may like to have a more detailed understanding of
the failure.
21.2 For imported material, the time limit in I(a) and I(b) will be 90 days.

II Warranty quantity replacement : The warranty quantity replacement will be accounted

under warranty R-note by the depot officer (which raised the warranty claim as in sub-
para B.I(a) above).
Financial recovery (if any made) against the warranty failure will be refunded to
the firm on warranty quantity replacement.
III Inspection of the replacement supply against warranty rejection:

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(A) For cases of replacement supply against warranty failure falling in the category BI(a)
above, the replacement supply should normally be inspected by the same inspection agency
which inspected and passed original supply. Thus for B.I(a), any change in inspecting
authority for the warranty replacement will necessitate a formal amendment in contract.
(B) In case of warranty rejection of item of the category B.I (b) above, it may in some
cases be difficult to re-use the services of inspecting agency which passed the original
supply. Similarly for some items, the end user/consignee may not have the requisite
inspection facility/expertise.
Thus for warranty rejection falling in the category B.I.(b) above:-

(i) The replacement supply can be inspected by the same inspecting agency
which inspected and passed the original supply. Payment of inspection charges will
be borne by supplier.
OR
The replacement supply can be inspected by authorized representative of consignee.
OR
The replacement supply can be made by firms own internal inspection certificate.
(ii) The decision on the above will rest with the depot officer who raised the warranty
claim and will be indicated in the warranty claim notice.

(C) However in case the warranty failure is of a component of an assembly supplied, the
component can be accepted on firm’s own Guarantee Certificate/internal inspection
certificate and consignee’s final inspection for both the categories (B I(a) and B
I(b)) of warranty failure.
IV Place of warranty replacement – For warranty replacement of category B.I(a), in order
to ensure correct accountal of warranty replacement, the place of warranty replacement will
be the depot which received the original supply. For warranty replacement of failure
falling in category B.I.(b) above, an exemption can be made and the place of replacement
supply can be indicated by the depot officer (at his option) in the warranty claim notice to the
firm to be the end-user’s place.
V. For warranty replacement of the category B.I(b), due care will be taken by the end user
to ensure that accountal of replacement supply etc. are properly taken care of. After
settlement of warranty claim the rejected material will be handed over by the end user to the
firm’s representative. The end user will also inform the depot officer who raised warranty
claim about the replacement.
1.At the option of the depot officer/end-user, rectification of the material rejected {under
category 21.1(A) and 21.1(B)} may be permitted within railway premises by the firm only
after the firm has refunded the payment (if already made by Railway) or equivalent amount

Page 21
 has been withheld for this purpose. However, from the date of communication of rejection
advice, the rectification activity has to be completed within 21/45 days for indigenous/
imported material respectively for rejection of the category 21.1(A) and 45/90 days for
indigenous/imported material respectively for the rejection of the category 21.1(B). If more
time is taken beyond this, applicable ground rent will be levied on the firm.
2. In order that quantity shortfall due to warranty failure of B.I(a) is made up, the depot
officer may prepare an additional demand (equal to the quantity failed in warranty) for
procurement, once recovery towards warranty has been confirmed by Accounts. Any
warranty replacement subsequently made will automatically get reflected in stock and thus
there will not be any net extra procurement. It will however ensure timely availability of
materials.

22.0. Special Tender Conditions for GST

****

1.0 All the bidders/tenders should ensure that they are GST compliant and their quoted
tax structure/rates are as per GST Law.

2.0 1. All vendors should have GST Registration Number.

2. GST Act and Rules are applicable as ammended from time to time.

3.0(A)“In case the successful tenderer is not liable to be registered under

CGST/IGST/UTGST/SGST Act, The railway shall deduct the applicable GST from his/her
bills under reverse charge mechanism(RCM) and deposit the same to the concerned tax
authority”.

(B) EVALUATION OF OFFERS UNDER GST REGIME:

1. Purchaser may incorporate HSN number in the tender document. However it shall be the
responsiblity of the bidders to quote correct HSN number and corresponding GST rate.

2.i)The offers shall be evaluated based on the GST rate as quoted by each bidder and same
will be used for determining the inter se ranking. While submitting offer, it shall be the
responsiblity of the bidder to ensure that they quote correct GST rate and HSN number.
ii)Purchaser shall not be responsible for any misclassification of HSN number or incorrect
GST rate if quoted by the bidder.
iii) Wherever the successful bidder invoices the goods at GST rate or HSN number which is
different from that incorporated in the purchase order, payment shall be made as per GST
rate incorporated in the purchase order or billed.

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iv)Vendor is informed that she/he would be required to adjust her/his basic price to the extent
required by higher tax billed as per invoice to match the all inclusive price as mentioned in
the Purchase order.
v)Any amendment to GST rate or HSN number in the contract shall be as per the contractual
conditions and statutory amendments in the quoted GST rate and HSN number under SVC.

(C) Payment of GST on production of Documentary Evidence.

i) Onus of correct classification and rate is on the firm.

ii) GST will be paid on production of documentary proof. All input credits should be
passed on to Railways by the supplier. To this effect, the firm should give
declaration that all input credits has been passed on to Railways while submitting the
bills.

iii) The firm shall pass on (as per section 17(1)of CGST/SGST Act ) any reduction in tax
rate on supply of goods or any benefit of input tax credit to the Railway through a
commensurate reduction in price without any undue delay. To the above effect the firm
should give declaration that all the benefits accruing on account of change in tax rate and
any additional inut tax credit(ITC benefit) shall be passed on to the Railway.

iv)Any kind of reduction in prices obtained by the supplier due to implementation of GST
is to be passed on to the purchaser as per Anti Profiteering clauses of GST Act at any
point of time during the period of the contract.

Page 23
 Annexure -I

PROFORMA FOR WARRANTY GUARANTEE BOND

To
THE PRESIDENT OF INDIA
Acting through the Principal Chief Materials Manager,
Metro Railway,
33/1, J.L.Nehru Road,
Kolkata-700071

Sub: Guarantee No--------------for-------------------(Amount) Covering Machine(s)

Serial No---------------supplied to (Consignee/s) -------------------------------------- Ref:
Contract No---------------dated----------------Placed on M/ s -----------------------

1. WHEREAS M/s ------------------------- one of our constituents, hereinafter called the

“Sellers” have agreed to sell to you (hereinafter referred to as the “ Government”) ------ --
------Nos. of --------------------- (give description) as per contract No ------------- dated --- -
---------- (hereinafter called “the said contract”).
2. AND WHEREAS according to the terms of said contract, it has been stipulated that
payment of 10 per cent of the value of the stores would be made, provided that the Sellers
furnish to the Purchaser a Bank Guarantee from a recognized Bank, acceptable to the
Purchaser for 10 per cent of the value of the said contract, valid for a period covering in full
the Guarantee Period as per the Warranty clause of the said conditions of the contract, being
the conditions attached to and forming part of the said contract.
3. AND WHEREAS the Sellers have approached us to give the said Bank Guarantee on their
behalf in your favor for an amount representing 10 percent of the value of the contract which
you have agreed to accept.
4. That in consideration of the promises and at the request, of the said Sellers, we hereby
irrevocably undertake and guarantee to pay to the Government of India or at such other place as
may be determined by you forthwith on demand and without any demur, any sum
upto a maximum amount of -------------(Rs. --------- -) representing 10 per cent of the value of
the Stores dispatched under the said contract in case the Sellers make default in paying the
said sum or make any default in the performance observance or discharge of the guarantee
contained in the said contract.
5. We agree that the decision of the Government whether any default has occurred or
has been committed by the Sellers in the performance, observance or discharge of the
guarantee aforesaid shall be, conclusive and binding on us.
6. Government shall be at liberty, from time-to-time, to grant or allow extension of time or
give other indulgence to the said Sellers or to modify the terms and conditions of the contract
with the said Sellers without affecting or impairing this guarantee or our liability hereunder.

Page 24
7. We undertake to pay to the Government any money so demanded notwithstanding any
dispute or disputes raised by the Sellers in any suit or proceeding pending before any Court
or Tribunal relating there to our liability under this present being absolute and unequivocal.
The payment so made by us under this bond shall be a valid discharge to our liability for
payment there under and the Sellers shall have no claim against us for making such payment.
8. This Bank guarantee comes in to force when the balance ten percent of the value of the
stores shipped per Vessel ------------- vide Bill of Lading No. -------------- dated -------------- or
R/ R No.------------------ dated ------------------ (in the case of indigenous contracts) under the
said contract, has been paid and will remain in full force and effect up to ------------- i.e. for ---
---months counted from the date of placing the stores in services,
and shall continue to be enforceable for further six months i e. upto ---------- (date),
hereinafter called the said date.
9. This guarantee will not be discharged due to the change in the constitution of
the Bank or the Sellers
10. That no claim under this guarantee shall be entertained by us unless the same has
been preferred by the Government within the said date.

Date ---------------Signature-------------------------------

Place -------------Printed Name ---------------------------

Witness -------------------------------------------------------------------
- (Designation) (Banks

common Seal)

Page 25
 Annexure-II
LC/DA NO.---------------------
Dt._____________________

DOCUMENT OF AUTHORIZATION

1. It is certified that Work job assigned in Contract No……………………………….

Dated…………………under Inland Letter of Credit No………………………….

Dated……………………………….

Or
Goods received/Works order completed Stage-Phas 1/2/3/4/5.

2. The beneficiary of Letter of Credit M/s……………………………is entitled to Receive

payment aggregating INR……………… out of a total LC amount of

INR…………….against the first/second* commercial Invoice No___________dated

_______for INR raised against the above contract on the strength of this certificate.

3. PAYMENTS ALREADY MADE:

1. Invoice No.
2. Invoice No.
& so on Total
4. THIS PAYMENT:

5. LC BALANCE AFTER THIS PAYMENT.

Signature & seal of Applicant

(Railway Authority)

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