CHAPTER VI

STANDARD CONTRACT DOCUMENT

Agreement between the Government of the Republic of India, Ministry of Defence

and
(Name of the Company) for (Name of Equipment) Contract No.
(No of the Contract)

INDEX

ARTICLE 1 SCOPE OF CONTRACT

ARTICLE 2 EFFECTIVE DATE OF CONTRACT

ARTICLE 3 ADVANCE BANK GUARANTEE

ARTICLE 4 PERFORMANCE CUM WARRANTY BOND

ARTICLE 5 PAYMENT TERMS

ARTICLE 6 MONITORING OF PROJECT BASED ON

CONTRACTUAL MILESTONES

ARTICLE 7 SPECIFICATION

ARTICLE 8 QUALITY

ARTICLE 9 PRE-DISPATCH INSPECTION (PDI)

ARTICLE 10 PRESERVATION, PACKING AND MARKING

ARTICLE 11 DELIVERY

ARTICLE 12 TITLE AND RISK OF LOSS

ARTICLE 13 TRANSPORTATION

ARTICLE 14 AIR LIFT

ARTICLE 15 LIQUIDATED DAMAGES

ARTICLE 16 DENIAL CLAUSE

ARTICLE 17 JOINT RECEIPT INSPECTION (JRI) IN INDIA

ARTICLE 18 WARRANTY

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ARTICLE 19 INDIGENOUS CONTENT (IC)

ARTICLE 20 CLAIMS

ARTICLE 21 TAXES AND DUTIES

ARTICLE 22 TERMINATION

ARTICLE 23 LAW

ARTICLE 24 ARBITRATION

ARTICLE 25 PENALTY FOR USE OF UNDUE INFLUENCE

ARTICLE 26 AGENTS

ARTICLE 27 FORCE MAJEURE

ARTICLE 28 NON DISCLOSURE OF CONTRACT DOCUMENTS

ARTICLE 29 NOTICES

ARTICLE 30 TRANSFERS AND SUB-LETTING

ARTICLE 31 PATENTS AND OTHER INDUSTRIAL PROPERTY

RIGHTS

ARTICLE 32 AMENDMENTS

ARTICLE 33 PRODUCT SUPPORT

ARTICLE 34 TRAINING

ARTICLE 35 OPTION CLAUSE

ARTICLE 36 BUYER FURNISHED EQUIPMENT (BFE)

ARTICLE 37 ENGINEERING SUPPORT PACKAGE

ARTICLE 38 ACCESSES TO BOOK OF ACCOUNTS

ARTICLE 39 SEVERABILITY

ARTICLE 40 SURVIVAL AFTER CANCELLATION OR EXPIRATION

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ANNEXURES

ANNEXURE I STATEMENT OF PRICES & QUANTITIES

ANNEXURE II TECHNICAL SPECIFICATIONS

ANNEXURE III STATEMENT OF WORK (SOW) AND DELIVERY

SCHEDULE

ANNEXURE IV BANK GUARANTEE FORMAT FOR ADVANCE

ANNEXURE IV(A) BANK GUARANTEE FORMAT FOR PERFORMANCE-

CUM-WARRANTY BOND

ANNEXURE IV(B) BANK GUARANTEE FORMAT FOR ADDITIONAL

BANK GUARANTEE FOR ESSENTIAL PARAMETER-
B CASES

ANNEXURE V MODIFICATIONS TO BE INCORPORATED AS PER

REQUIREMENTS OF BUYER

ANNEXURE VI CERTIFICATE OF CONFORMITY

ANNEXURE VII QUANTITY CLAIM

ANNEXURE VIII QUALITY CLAIM

ANNEXURE IX PRICES BREAKDOWN OF SUPPLIES AND SERVICES

ANNEXURE X LETTER OF CREDIT

****

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CONTRACT NO.( )

DATED (_______ )

PREAMBLE

1. This Contract is made on this day, the (date) day of (Month & Year) in New
Delhi, between the President of India represented by the Joint Secretary & Acquisition
Manager (Land/Air/Maritime Systems)/Major General & equivalent, Service
Headquarters/Coast Guard, Ministry of Defence, Government of India, hereinafter referred
to as the BUYER (which terms unless excluded by the context, shall be deemed to include
his successor in office) on one part and M/s (name of the company with address) duly
represented by____ and incorporated under the laws of , having its registered office
at_____ , (which terms unless expressly indicated by the
context shall be deemed to include its successors and its assignee), hereinafter referred to
as the "SELLER" on the other part. WHEREAS, The BUYER agrees to buy and the
SELLER agrees to sell the Goods and Services (hereinafter collectively referred as
„Deliverables‟) described in Annexure-I of this Contract and in accordance with the terms
and conditions of this CONTRACT AND WHEREAS the SELLER assures the BUYER
that the BUYER has the right to have the supplies manufactured in India through a
nominated agency and supply it to the BUYER.

2. Definitions. The words and expressions beginning with initial Capital letter or are
in Capitals and defined in this Contract shall, unless the context otherwise requires, have the
meaning ascribed thereto herein, and the words and expressions defined in the Annexures
and used therein shall have the meaning ascribed thereto in the Schedules.

(a) “Contract” shall mean this present document reference: Contract No.
_________________, which inherently includes all Articles and its listed Annexures
and Appendices, and any amendments thereto.

(b) “Deliverables” shall mean all the Goods and Services which are to be
delivered under this Contract.

(c) “Total Contract Price” shall mean the total final negotiated price of present
Contract including all taxes and duties applicable at the time of signing of Contract,
of the deliverables to be supplied as specified at Article 1.

(d) “Expiration of Contract”

3. Order of Precedence. This Contract and documents forming part of or

referred to in this Contract are to be taken as mutually explanatory and, unless otherwise
expressly provided elsewhere in this Contract, the priority of this Contract and other
documents and Contracts forming part hereof or referred to herein shall, in the event of any
conflict between them, be in the following order:-

4
 (i) this Contract; and
(ii) all other documents forming part hereof or referred to herein

4. Subject to the provisions of the Contract, in case of ambiguities or discrepancies

within this Contract, the following shall apply:-

(i) between 2(two) or more Articles of this Contract, the provisions of a specific
Article relevant to the issue under consideration shall prevail over those in other
Articles;

(ii) between the Articles of this Contract and the Annexures, the Articles shall
prevail and between Annexure and Appendices, the Annexure shall prevail;

(iii) between any 2(two) Annexures, the Annexure relevant to the issue shall
prevail;

(iv) between the written description on the Drawing and the Specifications and
Standards, the latter shall prevail;

(v) between the dimension scaled from the Drawing and its specific written
dimension, the latter shall prevail; and

(vi) between any value written in numerals and that in words, the latter shall
prevail.

If either Party becomes aware of any inconsistency, within or between the documents
referred to in Article, such Party shall notify the other Party forthwith and the parties will
seek to resolve that inconsistency on the basis of order of preference set out above.

The headings used in this Contract are inserted for the convenience of the parties and
shall not define, limit, or describe the scope or the intent of the provisions of this Contract.

It is hereby agreed and declared by and between the parties hereof:-

ARTICLE 1
SCOPE OF CONTRACT

1.1 The SELLER undertakes to sell and to deliver to the BUYER and the BUYER
undertakes to accept and pay for all deliverables in accordance with the terms and
conditions stipulated in this Contract [for the acquisition of ___(nomenclature of the
equipment)] and accompanied accessories according to the technical specifications
stipulated in Annexure II to this Contract and the quantities, unit prices and total value,
as specified in Annexure I of this Contract.

1.2 The Total Contract Price including taxes and duties applicable at the time of
signing of Contract of the deliverables to be supplied according to this Contract amounts to

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Rs/US $/Euro/PS £ _______ (in words).

1.3 For Advance Payment Bank Guarantee (APBG), Performance-cum-Warrantee Bank

Guarantee (PWBG) and Additional Bank Guarantee (ABG), the Total Contract Price to be
considered, excluding the Total Price of AMC/CMC/PBL (if any), of the deliverables to be
supplied according to this Contract amounts to Rs/US $/Euro/PS £ _______ (in words). For
Performance Bank Guarantee (PBG), in case of AMC/CMC/PBL, the Total Price of
AMC/CMC/PBL to be considered, excluding taxes and duties, according to this Contract
amounts to Rs/US $/ PS £ _______ (in words). The Bank Guarantees are to be submitted as
per following:-

1.3.1 Foreign Seller. Bank guarantee(s) shall be from any Indian Public
Sector Bank or Private Sector Banks notified for business with GoI vide MoF/CGA
no. ________ or branches of Foreign Bank in India licensed by RBI or First Class
banks of international repute whose details have to be furnished in the Commercial
bid. In case of International banks, the Buyer reserves the right to consult Parliament
Street branch of State Bank of India, New Delhi or any other Public or Private Sector
Bank authorised by RBI and as per their recommendations seek confirmation of Bank
Guarantee(s) by counter guarantee by an Indian Bank at Seller‟s cost. The Seller has
the option to furnish multiple Bank Guarantees.

1.3.2 Indian Seller. In case of Indian Sellers, the Bank Guarantee(s) shall be from
any Indian Public Sector Bank or Private Sector Banks notified for business with GoI
vide MoF/CGA no. ________. The SELLER has the option to furnish multiple Bank
Guarantees.

ARTICLE 2
EFFECTIVE DATE OF CONTRACT

2.1 The Contract shall come into effect on the date of signature of both the parties on the
Contract (Effective Date) and shall remain valid until the completion of the obligations of
the parties under the Contract. The deliveries, supplies and performance of the services shall
commence from the effective date of the Contract. However the date of delivery would be
reckoned from the date of release of Advance payment by the BUYER to the SELLER (T0),
provided the SELLER submits the documents mandated by the DPP for release of advance
by the BUYER within 45 days of signing of Contract. In the event of the SELLER not
submitting the said documents within 45 days of signing of Contract, the period between
th
the 45 day and actual submission of documents will be excluded from the actual date of
advance payment to arrive at the delivery date. In case, no advance is to be paid, the date
for reckoning date of delivery would be the date of signing of Contract. This clause will not
be applicable in cases wherein Advance payment is released after FOPM is successfully
validated. In such cases, date of accord of Bulk Production Clearance will be date for
reckoning date of delivery.

2.2 The BUYER and the SELLER have to fulfil the following obligations:-

(a) SELLER. The SELLER shall furnish the following documents to the
BUYER:-
(i) Advance Payment Bank Guarantee and Invoice.

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 (ii) Performance cum Warranty Bank Guarantee; and
(iii) Export License from the SELLER‟s Government, as applicable (a copy of
Seller‟s application for export license to their government may be provisionally
accepted in lieu of export license for release of Advance Payment with the
caveat that the Seller should submit the requisite Export License prior to release
of next payment from the BUYER).

(iv) Additional Bank Guarantee for Essential Parameter „B‟, if applicable

(b) BUYER. The BUYER shall also provide End User‟s Certificate, if required, to
the SELLER within 30 days of signing of the Contract.

ARTICLE 3A
ADVANCE PAYMENT BANK GUARANTEE
(For Foreign Sellers only)

3A.1 An Advance Payment Bank Guarantee will be submitted by the SELLER in the form
of a bank guarantee by (SELLER‟S BANK.............) in favour of Government of India,
Ministry of Defence equal to % of the Total Contract Price (excluding total Price of
AMC/CMC/PBL, if any) i.e. for US $/Euro/PS £ …………… (in words US
Dollars/Euro/PS………………………….. only). The SELLER has the option to furnish
multiple Bank Guarantees.

3A.2 The prescribed format of the Advance Payment Bank Guarantee is mentioned in
Annexure-IV to this Contract.

3A.3 The Advance Payment Bank Guarantee shall be considered open upon receipt by the
BUYER‟s bank.

3A.4 Advance Payment Bank Guarantee (APBG) shall be proportionately and

automatically reduced until full extinction along with and prorate to the value of each
delivery as evidenced by the corresponding copy of document proving delivery (Bill of
Lading or Air Way Bill or CRV, as the case may be) and invoices of Deliverables
supplied/provided. The SELLER has the option to furnish separate Bank Guarantee for each
lot/batch/deliverable(s) (as specified at Ser 3.1.2 of Annexure III to Chapter VI) to affect pro-
rata reduction of APBG.

ARTICLE 3B
ADVANCE PAYMENT BANK GUARANTEE
(For Indian Sellers only)

3B.1 An Advance Payment Bank Guarantee will be submitted by the SELLER in the form
of a bank guarantee, in favour of Government of India, Ministry of Defence, equal to
% of the Total Contract Price (excluding total Price of AMC/CMC/PBL, if any) i.e. for
Rs…………… (in words Rs………………………….. only). The SELLER has the option to
furnish multiple Bank Guarantees.

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3B.2 The prescribed format of the Advance Payment Bank Guarantee is mentioned in
Annexure IV to this Contract.

3B.3 The Advance Payment Bank Guarantee shall be considered open upon receipt by the
BUYER‟s bank.

3B.4 The Advance Payment Bank Guarantee (APBG) shall be proportionately and
automatically reduced until full extinction along with and prorate to the value of each
delivery as evidenced by the corresponding copy of document proving delivery (Bill of
Lading or Air Way Bill or CRV, as the case may be) and invoices of deliverables
supplied/provided. The SELLER has the option to furnish separate Bank Guarantee for each
lot/batch/deliverable(s) (as specified at Ser 3.1.2 of Annexure III to Chapter VI) to affect pro-
rata reduction of APBG.

ARTICLE 3C
ADVANCE PAYMENT INDEMNITY BOND
(Applicable for Defence PSUs/ JVs with DPSUs or PSUs or Government Entities being
issued RFP as a Nominated Production Agency or on an ab-initio single vendor basis only)

3C.1 An Advance Payment Indemnity Bond will be submitted by the Defence PSUs/JVs with
DPSUs/PSUs/Govt Entity in favour of Government of India, Ministry of Defence, equal to
___% of the Total Contract Price (excluding total Price of AMC/CMC/PBL, if any) i.e. for
Rs…………… (in words Rs………………………….. only)..

3C.2 The Advance Payment Indemnity Bond shall be proportionately and automatically
reduced until full extinction along with and prorate to the value of each delivery as evidenced
by the corresponding copy of document proving delivery (Bill of Lading or Air Way Bill, as
the case may be) and the invoices of deliverables supplied/provided.

ARTICLE 3D
ADDITIONAL BANK GUARANTEE FOR ESSENTIAL PARAMETER- B CASES
(For Foreign Sellers Only)

3D.1 An Additional Guarantee will be submitted by the SELLER in the form of a bank
guarantee by (SELLER‟s BANK…………..) in favour of Government of India, Ministry of
Defence, equal to _______% of the Total Contract Price (excluding total Price of
AMC/CMC/PBL, if any) i.e. for US $/Euro/PS£……… (in words US Dollars/Euro/PS
…………………only). The SELLER has the option to furnish multiple Bank Guarantees.
However, in cases where the equipment fielded by the Seller emerging L1 has already been
trial evaluated for Essential Parameters - B and found compliant to same, the Seller will not
furnish an Additional Bank Guarantee for Essential Parameters – B.

3D.2 The prescribed format of the Additional Bank Guarantee is mentioned in Annexure-
IV (B) to this Contract.

3D.3 The Additional Bank Guarantee shall be considered open upon receipt by BUYER‟s

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bank.

ARTICLE 3E
ADDITIONAL BANK GUARANTEE FOR ESSENTIAL PARAMETER- B CASES
(For Indian Sellers Only)

3E.1 An Additional Guarantee will be submitted by the SELLER in the form of a bank
guarantee, in favour of Government of India, Ministry of Defence, equal to _____ % of the
Total Contract Price (excluding total Price of AMC/CMC/PBL, if any) i.e. for Rs……… (in
words Rs………………only). The SELLER has the option to furnish multiple Bank
Guarantees. However, in cases where the equipment fielded by the Seller emerging L1 has
already been trial evaluated for Essential Parameters - B and found compliant to same, the
Seller will not furnish an Additional Bank Guarantee for Essential Parameters – B.

3E.2 The prescribed format of the Additional Bank Guarantee is mentioned at Annexure-
IV(B) to this Contract.

3E.3 The Additional Bank Guarantee shall be considered open upon receipt by the
BUYER‟s bank.

ARTICLE 4A
PERFORMANCE CUM WARRANTY BANK GUARANTEE
(For Foreign Sellers only)

4A.1 A Performance cum Warranty Bank Guarantee will be submitted by the SELLER in
the form of a bank guarantee by (SELLER‟S BANK.............), in favour of Government of
India, Ministry of Defence, equal to 5 % of the Total Contract Price (excluding taxes and
duties and Total Price of AMC/CMC/PBL,, if any) i.e. for US $/Euro/PS £ …………… (in
words US Dollars/Euro/PS………………………….. only). The SELLER has the option to
furnish multiple Bank Guarantees.

4A.2 The prescribed format of the Performance-cum-Warranty Bank Guarantee is

mentioned at Annexure IV (A) of this Contract. The Performance-cum-Warranty Bank
Guarantee shall be considered open upon receipt by the BUYER‟s bank.

4A.3 The Performance-cum-Warranty Bank Guarantee shall remain valid for a period of
three months beyond the warranty period.

4A.4 In case any claim or any other Contractual obligation are outstanding, the SELLER
shall extend the Performance-cum-Warranty Bank Guarantee as asked by the BUYER till
such time the SELLER settles all claims and completes all Contract obligations.

4A.5 The Performance-cum-Warranty Bank Guarantee will be subject to encashment by

the BUYER in case, condition regarding adherence to delivery schedule, warranties,

9
settlements claims and other provisions of the Contract are not fulfilled by the SELLER. If at
any stage, the Performance Guarantee is invoked by the Buyer either in full or in part, the
Seller shall make good the shortfall in PWBG within 30 days by an additional Bank
Guarantee for equivalent amount. In the event of failure to submit the required Bank
Guarantee against invoked Performance Guarantee, equivalent amount will be withheld from
the next stage payment till the shortfall in the Bank Guarantee is made good by the Seller.

ARTICLE 4B
PERFORMANCE CUM WARRANTY BANK GUARANTEE
(For Indian Sellers only)

4B.1 A Performance cum Warranty Bank Guarantee will be submitted by the Seller in the
form of a Bank Guarantee, in favour of Government of India, Ministry of Defence, equal to
5% (Five percent) of the Total Contract Price (excluding taxes and duties and Total Price of
AMC/CMC/PBL, if any) i.e. for Rs______ (in words Rs______only). The SELLER has the
option to furnish multiple Bank Guarantees.

4B.2 The prescribed format of the Performance-cum-Warranty Bank Guarantee is

mentioned at Annexure IV(A) of this Contract. The Performance-cum-Warranty Bank
Guarantee shall be considered open upon receipt by the BUYER‟s bank.
4B.3 The Performance-cum-Warranty Bank Guarantee shall remain valid for a period of
three months beyond the warranty period.

4B.4 In case any claim or any other Contractual obligation are outstanding, the SELLER
shall extend the Performance-cum-Warranty Bank Guarantee as asked by the BUYER till
such time the SELLER settles all claims and completes all Contractual obligations.

4B.5 The Performance-cum-Warranty Bank Guarantee will be subject to encashment by

the BUYER in case, condition regarding adherence to delivery schedule, warranties,
settlements claims and other provisions of the Contract are not fulfilled by the SELLER. If at
any stage, the Performance Guarantee is invoked by the Buyer either in full or in part, the
Seller shall make good the shortfall in PWBG within 30 days by an additional Bank
Guarantee for equivalent amount. In the event of failure to submit the required Bank
Guarantee against invoked Performance Guarantee, equivalent amount will be withheld from
the next stage payment till the shortfall in the Bank Guarantee is made good by the Seller.

ARTICLE 4C
PERFORMANCE CUM WARRANTY INDEMNITY BOND
(Applicable for Defence PSUs/ JVs with DPSUs or PSUs or Government Entities being
issued RFP as a Nominated Production Agency or on an ab-initio single vendor basis only)

4C.1 A Performance cum Warranty Indemnity bond will be submitted by the Defence
PSUs/JVs with DPSUs/PSUs/Govt Entity in favour of Government of India, Ministry of
Defence, equal to 5% (Five percent) of the Total Contract Price (excluding taxes and duties
and Total Price of AMC/CMC/PBL, if any) i.e. for Rs______ (in words Rs______only).

10
4C.2 The prescribed format of the Performance-cum-Warranty Bank Guarantee is
mentioned at Annexure IV(C) of this Contract. The Performance-cum-Warranty Indemnity
bond shall remain valid for a period of three months beyond the warranty period.

4C.3 In case any claim or any other Contractual obligation are outstanding, the SELLER
shall extend the Performance-cum-Warranty Indemnity bond as asked by the BUYER till
such time the SELLER settles all claims and completes all Contract obligations.

4C.4 The Performance-cum-Warranty Indemnity bond will be invoked by the BUYER in

case, condition regarding adherence to delivery schedule, warranties, settlements claims and
other provisions of the Contract are not fulfilled by the SELLER. If at any stage, the
Performance Guarantee is invoked by the Buyer either in full or in part, the Seller shall make
good the shortfall in PWBG within 30 days by an additional Bank Guarantee for equivalent
amount. In the event of failure to submit the required Bank Guarantee against invoked
Performance Guarantee, equivalent amount will be withheld from the next stage payment till
the shortfall in the Bank Guarantee is made good by the Seller.

ARTICLE 4D
PERFORMANCE BANK GUARANTEE FOR AMC/CMC
(For Foreign Sellers only)

4D.1 A Performance Bank Guarantee, will be submitted by the SELLER in the form of a
bank guarantee by (SELLER‟S BANK.............), in favour of Government of India, Ministry
of Defence, equal to 5 % of the Total Price of AMC/CMC, excluding taxes, i.e. for US
$/Euro/PS £ …………… (in words US Dollars/Euro/PS………………………….. only)
prior to expiry/return of the PWBG of the Main Contract. The SELLER has the option to
furnish multiple Bank Guarantees.

4D.2 The prescribed format of the Performance Bank Guarantee is to be as per Annexure
IV (A) of this Contract. The Performance Bank Guarantee shall be considered open upon
receipt by the BUYER‟s bank.

4D.3 The Performance Bank Guarantee shall remain valid for 03 months beyond the
period of AMC/CMC.

4D.4 In case any claim or any other Contractual obligation are outstanding, the SELLER
shall extend the Performance Bank Guarantee as asked by the BUYER till such time the
SELLER settles all claims and completes all Contract obligations.

4D.5 The Performance Bank Guarantee will be subject to encashment by the BUYER in
case, condition regarding adherence to operational availability, permissible downtime and
other provisions of the Contract are not fulfilled by the SELLER.

ARTICLE 4E
PERFORMANCE BANK GUARANTEE FOR AMC/CMC

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 (For Indian Sellers only)

4E.1 A Performance Bank Guarantee will be submitted by the SELLER in the form of a
bank guarantee, in favour of Government of India, Ministry of Defence, equal to 5 % of the
Total Price of AMC/CMC, excluding taxes, i.e. for Rs …………… (in words Rs………..
only) prior to expiry/return of the PWBG of the Main Contract. The SELLER has the option
to furnish multiple Bank Guarantees.

4E.2 The prescribed format of the Performance Bank Guarantee is to be as per Annexure
IV(A) of this Contract. The Performance-cum-Warranty Bank Guarantee shall be considered
open upon receipt by the BUYER‟s bank.
4E.3 The Performance Bank Guarantee shall remain valid for 03 months beyond the
period of AMC/CMC.

4E.4 In case any claim or any other Contractual obligation are outstanding, the SELLER
shall extend the Performance Bank Guarantee as asked by the BUYER till such time the
SELLER settles all claims and completes all Contract obligations.

4E.5 The Performance Bank Guarantee will be subject to encashment by the BUYER in
case, condition regarding adherence to operational availability, permissible downtime and
other provisions of the Contract are not fulfilled by the SELLER.

ARTICLE 4F
PERFORMANCE INDEMNITY BOND
(Applicable for Defence PSUs/ JVs with DPSUs or PSUs or Government Entities being
issued RFP as a Nominated Production Agency or on an ab-initio single vendor basis only)

4F.1 A Performance Indemnity bond will be submitted by the Defence PSUs/JVs with
DPSUs/PSUs/Govt Entity, in favour of Government of India, Ministry of Defence, equal to
5% (Five percent) of the Total Contract price of AMC/CMC, excluding taxes, i.e. for Rs___
(in words Rs Only) prior to expiry/return of the PWBG of the Main Contract.

4F.2 The Performance Bank Guarantee shall remain valid for 03 months beyond the
period of AMC/CMC.

4F.3 In case any claim or any other Contractual obligation are outstanding, the SELLER
shall extend the Performance Indemnity bond as asked by the BUYER till such time the
SELLER settles all claims and completes all Contract obligations.

4F.4 The Performance Indemnity bond will be invoked by the BUYER in case, condition
regarding adherence to operational availability, permissible downtime and other provisions of
the Contract are not fulfilled by the SELLER.

ARTICLE 5A
PAYMENT TERMS

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 (For Foreign Sellers only)

5A.1 The Accounting and Payment currencies shall be US Dollars/Euro/Pound Sterling/any

other currency.

5A.2 The Total Contract Price referred to in Article 1 of the Contract shall be paid in
accordance with the payment schedule at Annexure I.

5A.3 Advance Payment. % of Total Contract Price (excluding total Price of

AMC/CMC/PBL, if any) being USD/Euro/Pound Sterling/ any other currency, shall be paid to
the SELLER within 30 days of the receipt of the documents indicated at Article 2.2(a) through
Bank Transfer, subject to correction and acceptability of the documents submitted.

5A.4 % of the Total Contract Price (excluding total Price of AMC/CMC/PBL, if any)
being USD/Euro/Pound Sterling/ any other currency shall be paid to the SELLER through
a documentary irrevocable Letter of Credit (LC), mentioned at Annexure X, to be opened
by the BUYER as follows:-

(a) The SELLER will give a notification to the BUYER about the readiness
of goods for dispatch 45 days prior to the delivery of the consignment.
(b) Consequent on receipt of the above notification, the BUYER shall open the
LC before expiry of this period of 45 days provided a 5% Performance cum Warranty
Bond for the Full value of the Contract has been received.
(c) The LC will be opened in any Public Sector bank (as decided by the BUYER).

(d) With SELLER‟s Bank, i.e. Account No. __________

in favour of SELLER and will be valid for a period of days/months from
the date of opening.
Note: Since the LC charges are fixed on per quarter basis, it may be ensured that LC validity is
fixed in multiples of 90,180,270 days depending upon the delivery schedule. In case the
delivery is in multiple consignments and there is a long delivery schedule more than one LC or
revolving LC can be opened.

5A.5 The payment under the LC (Relevant Article may be referred e.g Article 5A.4) shall be
made against presentation of the following documents, by the SELLER to the LC issuing
bank:-

(a) SELLER‟s commercial invoice in sextuplicate, showing the number of

the Contract, quantity and Denomination of the Equipment delivered and the amount.

(b) Full set of Originals “Clean on Board” Bills of Lading/Air Way Bill (for
payments against dispatch).

(c) Packing List (six copies).

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 (d) Certificate of Origin, duly stamped by the SELLER‟s Chamber of Commerce
or self-certified by OEM.

(e) Certificate of Conformity and Acceptance Test report (where applicable) at the
Pre Despatch Inspection signed by BUYER‟s and the SELLER‟s Quality Assurance
Department. In case BUYER‟s representative do not attend the PDI, then certificate
issued by the BUYER that it does not wish to attend the PDI and Inspection and
Acceptance certificate issued by the SELLER (for payments against dispatch).

(f) Certificate of current manufacture from OEM.

(g) Certified Receipt Voucher (CRV) by the BUYER (for payment against
delivery).

(h) Dangerous Cargo Certificate, where applicable.

(j) Phyto-Sanitary/Fumigation Certificate, where applicable.

(k) In case of training, a certificate from BUYER‟s representative that training

program has been completed.

(l) Export License from the SELLER‟s Government (if applicable).

5A.6 All expenses connected with establishment of the LC in India will be borne by the
BUYER and those outside India will be borne by the SELLER.

5A.7 Where the extension of the validity of LC is necessitated, the bank charges for
extension shall be borne by the party whose default causes such an extension.

5A.8 Transshipment may not be permitted for certain deliverables and/or under certain
situations, (as specified by the BUYER in RFP).

5A.9 Three copies of SELLER‟s Commercial Invoices, shipping documents and packing
list will be sent by courier and fax by the SELLER to the BUYER (Wing of Service HQ to
be specified) within 3 days after the equipment has been shipped. Intimation may also be
forwarded to Ministry of Defence, South Block, New Delhi (Wing to be specified).

5A.10 The LC shall be subject to and shall be governed by the extant Uniform Customs
and Practices for Documentary Credits issued by the International Chamber of Commerce.

5A.11 All payments will be carried out with reference to the number of this Contract.

5A.12 On Final Acceptance and Installation/Commissioning. The remaining % of

the Total Contract Price (excluding total Price of AMC/CMC/PBL, if any) shall be paid
within thirty (30) days after the date of the Acceptance Certificate & Certified Receipt
Voucher (CRV) issued by the BUYER and other relevant documents as mentioned above
for final payment, but such payments will be subject to the deductions of such amounts as the

14
SELLER may be liable to pay under the agreed terms of the Contract.

5A. 13 Balance Payment (if applicable). The balance payment for % of the
Contract Price (excluding total Price of AMC/CMC/PBL, if any) shall be paid to the
SELLER by LC/Bank Transfer within days of completion of Joint Receipt Inspection
(JRI) and Acceptance of goods against presentation of following documents:-

(a) Copies of invoices (three copies).

(b) Copy of JRI and acceptance certificate issued by the BUYER.
(c) Any other relevant document indicated at Article 5.5.

5A.14 SELLER‟s bankers address and account number: -

______________
Account No.:
Sort code:
SWIFT Code:

5A.15 AMC/CMC Payments. (Note: This Para may be included if there is

AMC/CMC clause in RFP). Quarterly/Half-yearly/Annually payments will be made by
PCDA/CDA on submission of User clearance certificate through issue of cheque/ECS.

ARTICLE 5B
PAYMENT TERMS

(For Indian Sellers in cases excluding “Buy Global” (other than DPSUs in ab-initio Single
Vendor Cases or as a nominated Production Agency))

5B.1 The total Contract Price referred to in Article 1 of this Contract shall be paid in
accordance with the pa yment schedul e at Annexure I.

5B.2 Advance Payment % of Total Contract Price (excluding total Price of

AMC/CMC/PBL, if any) being Rs ________shall be paid to the SELLER within 30 days of
the receipt of the documents indicated at 2.2(a), subject to correction and acceptability of the
documents submitted.

5B.3 Balance payment will be made on % of the Total Contract Price

(excluding total Price of AMC/CMC/PBL, if any) on proof of dispatch and inspection note
issued by the Inspecting Authority and % will be paid on receipt of stores in
good condition by the ultimate consignee. A certificate to that effect will be endorsed on
the copy of Inspection note which shall accompany the bill submitted by the supplier. The
payment will be made on production of following documents:-

(a) Commercial Invoices (original copy)

(b) SELLER Bills.

15
 (c) Inspection Acceptance Certificate demonstrating compliance with the
technical specification of the Contractor to be issued by the beneficiary.
(d) Packing list.
(e) Warranty certificate from the SELLER.

5B.4 On Final Acceptance and Installation/Commissioning. The remaining % of

the Total Contract Price (excluding total Price of AMC/CMC/PBL, if any) shall be paid
within thirty (30) days after the date of the Acceptance Certificate & Certified Receipt
Voucher (CRV) issued by the BUYER and other relevant documents as mentioned above
for final payment, but such payments will be subject to the deductions of such amounts as
the SELLER may be liable to pay under the agreed terms of the Contract.

5B.5 The paying authority for this Contract is .

5B.6 In Shipbuilding cases, the payment will be made by PCDA/CDA who will release
the payment through cheque/EFT to an Escrow Account as per modalities of Escrow
Agreement signed between the BUYER, SELLER and Escrow account operating Bank at
the time of signing of Contract.

5B.7 AMC/CMC Payments. (Note: This Para may be included if there is AMC/CMC
clause in RFP). Quarterly/Half-yearly/Annually payments will be made by PCDA/CDA on
submission of User clearance certificate through issue of cheque/ECS.

ARTICLE -5C
PAYMENT TERMS
[For Indian Sellers under Capital Acquisition, Category “Buy Global” (other than DPSUs in
ab initio Single Vendor Cases or as a nominated production agency)]

5C.1 In all of these cases, Indian Sellers can exercise option to take payment either through
LC or Bank Transfer. The Payments Terms would be regulated as given below:-

Clause Where Supplier opts for payment Where Supplier opts for payment
through L C through Bank transfer
1 The Accounting and Payment currencies shall be Rupees only. However, Exchange
Rate Variation (ERV), as per ERV provisions contained in Annexure I to Appendix
L of Schedule I to Chapter II and Para 6 of Appendix F of Schedule I to Chapter IV,
where permissible, shall be paid, only in INR.
2 The components of total Contract price are as follows:

(a) Value of goods supplied - Basic cost of Goods including ESP, as per the
Contract

(b) Freight and Insurance - As per the Contract

(c) Training charges and technical literature

(d) Reimbursable expenses - Taxes and duties as admissible under the Contract

16
 (e) AMC charges-As per the Contract

(f) Installation and Commissioning charges- As per the Contract

3 The total Contract price referred to in Article 1 of the Contract shall be paid in
accordance with th e payment schedule at Annexu re I.

(a) Advance Payment. ____% of total value of goods supplied being ₹--------
shall be paid to the SELLER, through Bank Transfer, within 30 days of the
receipt of the following documents:

(b) Advanced Payment Bank Guarantee as per Article 3B of the Contract.

(c) Performance cum Warranty Bank Guarantee as per Article 4B of the

Contract.

(d) Any other specific document (like proforma invoice) if required.

(Note: The second stage advance payment after completion of specific milestone
may also be paid through Bank Transfer.)

4 For the second/next stage payment the SELLER has the option to seek payment either
through Bank transfer from the O/o of PCDA _________ or through LC .
5 Where the SELLER opts for payment Where the SELLER opts for payment
through LC, all payments except for the through Bank Transfer payment shall
first stage payment as per clause 3 above be made as per following conditions:-
shall be made by LC, as per following
conditions:- (a) The SELLER will give a
notification to the BUYER about
(a) The SELLER will give a the readiness of goods for
notification to the BUYER about the dispatch 45 days prior to the
readiness of goods for dispatch 45 days delivery of the consignment.
prior to the delivery of the
consignment. (b) Once a Supplier opts for
payment through Bank Transfer,
(b) Consequent on receipt of the no changes in mode of payment
above notification, the BUYER shall would be permitted.
open the Letter of Credit through
PCDA before expiry of this period of
45 days provided a 5% Performance
cum Warranty Bank Guarantee for the
Full value of the Contract has been
received.

(c) The LC will be opened with a

Public Sector bank for ______% of
the Contract Price value with the
SELLER‟s Bank, i.e.______________
& SELLER‟s Account No.
____________. It will be valid for a
period of_________ days/months
from the date of opening.

17
 Note - Since the LC charges are fixed
on per quarter basis, it may be ensured
that LC validity is fixed in multiples of
90,180,270 days/months depending
upon the delivery schedule. In case the
delivery is in multiple consignments
and there is a long delivery schedule
more than one LC or revolving LC
can be opened.

(d) The payment against LC shall be

made to the SELLER against
presentation of the documents
specified.
(e) In the event of delay in opening
the LC (reasons for which are solely
attributable to BUYER), the delivery
date will automatically stand extended
to that extent. Formal amendment/
certification from BUYER will be
required as shipment date would have
to be amended in SWIFT form
accordingly.
(f) All expenses connected with
establishment of the LC in India will
be borne by the SELLER.

(g) Where the extension of the

validity of LC is necessitated, the
Bank charges for extension shall be
borne by the party whose default
causes such an extension.

(h) Once a SELLER opts for

payment through LC, no mid-way
changes in mode of payment are
permitted.

(j) The LC shall be subject to and

shall be governed by the instant
Uniform Customs and Practices for
Documentary Credits issued by the
International Chamber of Commerce.

(k) Any amendment in LC terms

will be subject to BUYER‟s approval.

6 All payments will be carried out with reference to the number of this Contract.
7 The Second/next Stage payment comprising ______% of the value of goods
supplied and full freight and insurance (where admissible) thereon, shall be paid to

18
 the SELLER on submission of the following documents, in six copies each:

(a) Commercial invoices in original.

(b) Contractor‟s bill in original.

(c) Certificate of Conformity and Acceptance test report at the Pre Despatch
Inspection signed by BUYER‟s and the SELLER‟s Quality Assurance
Department. In case BUYER‟s representative do not attend the PDI, then
certificate issued by the BUYER that it does not wish to attend the PDI and
Inspection and acceptance certificate issued by the SELLER.

(d) Proof of Despatch (original copies of RR, P. Way bill of Lading, Airway
bill as applicable).

(e) Packing List.

(f) Warranty certificate from the SELLER.

(g) Certificate of current manufacture from OEM.

(h) Insurance documents for 110% of the cost of consignment, except where
the supply is Ex-Works.

(j) Proof of Duty/Tax paid/reimbursable like deposition receipt/challan etc.

Note-

The Invoice and Seller’s bill must show the Contract reference number, break-up of
costs in terms of unit costs, total costs, exchange rate element, percentage rates of
taxes and duties and amount payable/paid, in complete detail.

(ii) Three copies of SELLER’s Commercial Invoices, proof of dispatch, packing

list and the specifications will be sent by courier and fax by the SELLER to the
BUYER (Wing of Service HQ to be specified) within 3 days after the equipment
has been shipped. Intimation may also be forwarded to Ministry of Defence,
South Block, New Delhi (Wing to be specified).

8 Payment of other components of Contract- Payment of other components of

Contract-
(a) Training. Commercial invoice/
Seller‟s bill, duly accepted by Contract (a) Training. Commercial invoice/
executing authority and Certificate Seller‟s bill, duly accepted by
from BUYER‟s representative that Contract executing authority and
training program has been completed. Certificate from BUYER‟s
representative that training program
(b) Reimbursable Expenses. Based has been completed.
on documentary proof of actual
payment against the Contract, issued (b) Reimbursable Expenses.
by relevant statutory authority. Sellers Based on documentary proof of
may ensure submission of same with actual payment against the
details of Contractual obligations Contract, issued by relevant

19
 completed and payments received. statutory authority. Sellers may
This clause shall form part of LC. ensure submission of same with
details of Contractual obligations
(c) Installation and Commissioning completed and payments received.
Charges. Commercial invoice/
Seller‟s bill, duly accepted by Contract (c) Installation and Commissioning
executing authority and Certificate Charges. Commercial invoice/
from BUYER‟s representative. Seller‟s bill, duly accepted by
Documents in proof of rates claimed Contract executing authority and
shall need to be annexed. Certificate from BUYER‟s
representative.
(d) AMC Charges. Commercial
invoice/ Seller‟s bill, duly accepted by
Contract executing authority and
Certificate from BUYER‟s (d) AMC Charges. Commercial
representative. invoice/ Seller‟s bill, duly accepted
by Contract executing authority and
Certificate from BUYER‟s
representative.

9 Balance Payment. The balance payment for ___% shall be paid to the SELLER
against presentation of following documents:-
(a) Copies of invoices (three copies).
(b) Copy of JRI and acceptance certificate issued by the BUYER.
(c) Seller‟s bill
(d) Extended bank guarantee wherever required
10 SELLER‟s bankers address and account SELLER‟s bankers address and
number: - account number:-

Bank Name: Bank Name:

Branch Name: Branch Name:
Account No.: Account No.:
Sort Code: Sort Code:
SWIFT Code: SWIFT Code:
IFSC Code IFSC Code
RTGS No RTGS No
11 Where admissible, tax deduction at source Where admissible, tax deduction at
will be done by the Bank releasing source will be done by PCDA.
payment against LC.
12 Payment/recovery in terms of the Contract Payment/recovery in terms of the
will be made by the Bank releasing Contract will be made by PCDA.
payment against LC. All documents
under the LC shall be delivered by the
Bank to PCDA (through Trade Finance
CPC, New Delhi).

ARTICLE 6

MONITORING OF PROJECT BASED ON CONTRACTUAL MILESTONES

20
6.1 After placement of order, the BUYER reserves the right but not the obligation to
monitor the progress of the project based on Contractual milestones to be achieved by the
SELLER as specified in the table below:-

Sl Milestone Timeline (To+Weeks) Remarks

(Include the Contractual milestones specified in the RFP or as negotiated with the SELLER
during Contract negotiations.)

6.2 The Project Monitoring Meeting is to be organized at ______ months interval. The
SELLER shall attend the progress monitoring meetings through its suitably qualified
representatives and shall submit progress reports to the BUYER in the format (if any)
specified.

6.3 In case the project does not proceed as per the Contractual milestone(s), the BUYER
will have the right to invoke Termination of the Contract.

6.4 For Shipbuilding Cases. After placement of order the BUYER at his own
expense may depute to the Shipyard at quarterly (or as considered necessary) intervals, teams
of representatives to review and coordinate the progress of the commitments made for
achieving the Contractual milestones by the SELLER as specified in table below:-

Sl Milestone Timeline (To+Weeks) Remarks

(Include the Contractual milestones specified in the RFP or as negotiated with the SELLER
during Contract negotiations.)

6.5 In case the project does not proceed as per the Contractual milestone(s), the BUYER
will have the right to invoke Termination of the Contract.

ARTICLE 7
SPECIFICATION

7.1 The SELLER guarantees to meet the specifications as per Annexure-II, the statement
of work as per Annexure-III and to incorporate the modifications to the existing design
configuration to meet the specific requirement of the BUYER as per Annexure-V and
modifications/requirements recommended after the confirmatory trials/MET, in the first off
production model of (Year) to be supplied to the BUYER. All technical literature and
drawing shall be amended as per the modifications by the SELLER before supply to the
BUYER.
(Note: The underlined language should be deleted in cases where it is not applicable, such
as when confirmatory trials/MET are conducted prior to Contract award.)

21
 7.2 The SELLER, in consultation with the BUYER, may carry out technical
upgradation/alterations in the design, drawings and specifications due to change in
manufacturing procedures, indigenisation or obsolescence. This will, however, not in any
way adversely affect the end specifications of the equipment. 'Changes in technical details,
drawings repair and maintenance techniques alongwith necessary SMTs/STEs/Test Jigs as a
result of upgradation/alterations will be provided to the BUYER free of cost within ( )
days of affecting such upgradation/alterations.'

ARTICLE 8
QUALITY

8.1 The quality of the deliverables (Goods and Services) according to this Contract shall
correspond to the technical conditions and standards valid for the deliveries of the same
deliverables in SELLER‟s country or specifications enumerated as per Article 7 and shall
also include therein modifications to the deliverables suggested by the BUYER. Such
modifications will be mutually agreed to. The SELLER confirms that the deliverables
contained in Annexure I to be supplied under this Contract shall be new ie not
manufactured before (year of Contract) and shall incorporate all the latest
improvements and modifications thereto and spares of improved and modified equipment are
backward integrated and interchangeable with same equipment supplied by the SELLER in
the past if any. The SELLER shall provide documentation to confirm interchangeability
along with the changed part Nos.

8.2 QAP including the ATP is included at _____ Appendix of the contract. ATP will lay
down the tests to be carried out during PDI and JRI. It shall be ensured that there are no
repetition of QA tests in PDI and JRI. JRI would normally be restricted to quantitative
checks only, except where check proof is required to be carried out. QA of equipment will be
carried out as per finalised QAP in the contract. For technical trials by QA agencies, the
Seller will arrange for requisite test facilities at OEM premises/accredited laboratories for
establishing conformance. The Seller would also be required to provide those test facilities at
OEM premises/accredited laboratories for quality assurance, which are not available with
QA agencies.

ARTICLE 9

PRE DESPATCH INSPECTION (PDI)

(To be included, if specified in the Acceptance Test Procedure)
9.1 The BUYER representatives will carry out Pre Despatch Inspection (PDI) of the
Equipment in order to check their compliance with specifications in accordance with
Acceptance Test Procedures as finalised during Contract negotiation. Upon successful
completion of PDI, the SELLER and BUYER will issue and sign a Certificate of
Conformity as per specimen at Annexure-V. (The format given is not sacrosanct and may be
altered as per requirement of the equipment.)

9.2 The SELLER shall intimate the BUYER and DGQA/DGAQA/DGNAI at least 45
days before the scheduled date of PDI. The time for visa formalities by the SELLER should

22
not be inclusive in this notice. The BUYER will send his authorised representatives to attend
the PDI.

9.3 The list of BUYER‟s representatives together with their particulars including name,
title, date and place of birth, passport numbers including date of issue and date of expiry,
address, etc. must be communicated by the BUYER at least (No of days) in advance to apply
for the necessary authorisations and clearances to be granted.

9.4 The BUYER reserves the right not to attend the PDI or to request for a delay in the
beginning of the PDI with a maximum of fifteen (15) days from the date fixed for such PDI in
order to allow his representatives to attend such tests, in which cases he shall inform in writing
the SELLER within 15 days before the date of the beginning of the PDI. Should the BUYER
request for such delay, then liquidated damages, if any, shall not apply. In case the BUYER has
informed the SELLER within the period mentioned here-above that he cannot attend the PDI or
in case the BUYER does not come at the postponed date requested by him for performance of
the PDI as mentioned above, the SELLER shall be entitled to carry out said tests alone as
scheduled. The Certificate of Conformity and the Acceptance Test Report will be signed by the
SELLER‟s QA representative alone and such documents bearing the sole signature of the
SELLER‟s QA representative shall have the same value and effect as if they have been signed
by both parties. In case BUYER does not elect to attend the PDI, then the BUYER shall
intimate the SELLER in writing that it does not wish to attend the PDI.

9.5 The SELLER shall provide all reasonable facilities, access and assistance to the
BUYER‟s representative for safety and convenience in the performance of their duties in
SELLER‟s country.

9.6 All costs associated with the BUYER‟s representative stay in (Name of country),
including travel expenses, boarding and lodging accommodation, daily expenses, shall be
borne by the BUYER.

9.7 In case of rejection of Goods during PDI, re-PDI will be undertaken at Seller‟s
premises at Buyer‟s sole discretion. All expenses including transportation and
accommodation of Buyer‟s PDI team will be borne by the Seller. Towards this, the
expenses towards transportation and accommodation of Buyer‟s PDI team will be initially
done by the Buyer and subsequently reimbursed by the Seller either by remittance or by
recovery from the Balance Payment/PWBG. In the event of a failed PDI, the Seller shall
consult the Buyer for rescheduling re-PDI.

ARTICLE 10
PRESERVATION, PACKING AND MARKING

10.1 The SELLER shall provide packing and preservation of the equipment and
spares/goods Contracted as per _____ (standards as defined in RFP or International best
practices/ relevant JSGs/DEFSTAN/STANAG) so as to ensure their safety against damage
in the conditions of land, sea and air transportation, transshipment, storage and weather
hazards during transportation, subject to proper cargo handling. The SELLER shall ensure

23
that the stores are packed in containers, which are made of sufficiently strong material. The
packing cases should have hooks for lifting by crane/fork lift truck. Tags with proper
marking shall be fastened to the special equipment, which cannot be packed.

10.2 The packing of the equipment and spares/goods shall conform to the requirements of
specifications and standards in force in the territory of the SELLER‟s country.

10.3 Each type of Spare, SMT, STE and accessories shall be packed in separate cartons. A
label in English shall be pasted on the carton indicating the under mentioned details of the
item contained in the carton. A tag in English with said information shall also be attached to
six samples of the item. If quantity Contracted is less than six then tag shall be affixed to
complete quantity Contracted of the item. The cartons shall then be packed in packing cases
as required.

(a) Part Number:

(b) Nomenclature:
(c) Contract annex number:
(d) Annex serial number:
(e) Quantity Contracted:
10.4 One copy of the packing list in English shall be inserted in each cargo package and
the full set of the packing lists shall be placed in Case No.1 painted in a yellow colour.

10.5 The SELLER shall mark each package with indelible paint in English language as
follows:-
EXPORT

Contract No. -----------------------------------------

Consignee --------------------------------------------
Importer _____________________
Port/airport of destination -----------------------
Ultimate consignee ---------------------------------
SELLER ----------------------------------------------
Package No. a/b -------------------------------------
Gross/net weight: kg --------------------------------
Overall dimensions/volume: cm/cu m ------------
Any statutory hazard markings and any handling markings including the mass of any
package
The Packaging Label (military J, N or P, special H, commercial A etc) (specify reference to
DEFSTAN 81-041 (Part 1)/STANAG-4280 or equivalent Military Standard.)

24
The SELLER‟s marking,
Where: a-Serial No. of package;
b-Total number of packages in this consignment.

10.6. If necessary, each package shall be marked with warning inscriptions:

<Top>, “Do Not Turn Over”, category of cargo etc.

10.7. Should any special equipment be returned to the SELLER by the BUYER, the latter
shall provide normal packing, which protects the equipment and spares/goods from the
damage of deterioration during transportation by land, air or sea. In this case the BUYER
shall finalise the marking with the SELLER.

ARTICLE 11
DELIVERY

11.1. The delivery of the Deliverables shall be completed in accordance with the schedule
laid down in Annexure III. The importer of all the deliverables to India under this Contract
shall be the BUYER. (The Annexure should clearly specify the item, the quantity and the
month from the effective date of the Contract as follows):-

No Equipment/Service Quantity Month from T0

Note: For large value and complex weapons acquisition programme, a complete programme
schedule in the form of a PERT Chart should be attached with the Contract.

11.2. Port Consignee.

(a) Equipment. (Concerned Embarkation HQ) (b) Ammunition.

11.3. Ultimate Consignee.
(a) Equipment. Commandant (Name of Depot).
(b) Ammunition. Commandant (Name of Depot).
11.4 The SELLER shall intimate to the BUYER by letter or fax, six weeks in advance, the
anticipated date of delivery of each consignment. The information shall consist of quantities
of the deliverables and all other details required in connection with the shipment of the
consignment. A copy of similar intimation shall also be forwarded to:-

(a) Service HQs (Branches may be specified as DDG/PPO, MGO, AHQ etc).
(b) Government of India, Ministry of Defence, South Block, New Delhi.
(c) Commandant COD ultimate Consignee Depot.
(d) Commandant Port Consignee.
(e) DGQA, South Block, New Delhi/DGAQA, H Block, New Delhi/DGNAI, West

25
 Block V, RK Puram , New Delhi.
11.5 Invoices and other dispatch documents shall be prepared in favour (F i l l
details while Contract finalising).

11.6 Two copies each of dispatch documents as listed in LC documents shall be forwarded
to the following addresses within 72 hours after the goods have been dispatched or earlier,
if possible:-

(a) Port Consignee.

(b) Services HQrs, New Delhi-110011 (branch may be specified).
(c) Ultimate consignee.
11.7 The SELLER will also forward a copy of the Air Way Bill and Commercial invoice by
fax on the day of despatch to (Branch may be specified).

ARTICLE 12
TITLE AND RISK OF LOSS

12.1 Title. The title of the equipment shall transfer to the BUYER as per delivery
schedule in accordance with Article 11 and as per transportation INCOTERMS in
accordance with Article 13 through acceptance of documents of title on completion of
JRI/User Acceptance/Delivery to the Ultimate consignee, as the case may be (as specified in
the RFP), in accordance with an indicative list of documents provided below (to be finalised
during CNC as per relevance):-

(a) Bill of lading;

(b) Dock warrant;

(c) Warehouse keeper‟s certificate;

(d) Wharfingers‟ certificate;

(e) Railway receipt;

(f) Multimodal transport document;

(g) Warrant or order for the delivery of goods; or

(h) Any other document used in the ordinary course of business and as
determined by the BUYER as proof of the title to the goods, or authorizing or
purporting to authorize, either by endorsement or by delivery, the possessor of such
documents with the title to the goods thereby represented.

The Parties shall accordingly execute such documents as may be necessary for effecting the
transfer of title in favour of BUYER, in a manner indicated in this clause, upon date of
acceptance or date of installation or date of commissioning [as applicable on a case to case
basis]

26
12.2 It is clarified that notwithstanding such transfer of title to the BUYER, the SELLER
agrees that any loss or damage incurred by BUYER due to any defect in title, quality and
performance of the equipment, shall be to the account of the SELLER subject to and in
accordance with the provisions of this Contract.

12.3 Notwithstanding the passing of title to the BUYER as mentioned herein, such passing
of title shall not in any way absolve, diminish, or dilute the responsibilities and obligations
of the SELLER and the SELLER shall continue to be responsible for the risk of loss or
damage, in accordance with Clause 12.5, as follows:

(a) For delivery of completed units, up to the date of acceptance; and

(b) In cases of turnkey Contracts including repair facilities involving civil works,
for stage-wise construction and commissioning at BUYER‟s premises, up to the date
of installation/ commissioning of the completed stores/works, on final acceptance by
the BUYER.

12.4 In case of termination, for reasons specified in Clause 22A.1, read with Clause 22A.2
to 22A.6 of this Contract, it is clarified that, the title of the partially built material shall be
transferred upon its possession with the BUYER if the BUYER exercises his/her discretion
to take over partially built material as per Article 22A.2. The methodology for accounting
and physical handover of materials/ equipment shall be done at the book value certified by
an independent auditors/ licensed surveyors, as determined by the BUYER from authorised
firms or body corporate, set forth in Appendix [•] of this Contract. If the SELLER has
reason to believe that the independent auditors/ licensed surveyors is not discharging its
duties and functions in a fair, efficient and diligent manner, it may make a written
representation to the BUYER and seek termination of appointment of such independent
auditors/ licensed surveyors. Upon receipt of such representation, the BUYER shall hold a
meeting with the SELLER and the independent auditors/ licensed surveyors for an amicable
resolution of the dispute, and if any difference or disagreement between the BUYER and
the SELLER remains unresolved, the dispute shall be settled as per the dispute resolution
procedure.

12.5 Loss: If any loss or damage occurs to the equipment (or any part thereof) prior to
the date of delivery or date of acceptance or date of installation or date of commissioning
(as applicable on a case to case basis), the SELLER shall rectify such loss or damage to the
equipment at its own cost in a manner that the equipment complies with requirements of
this Contract.
ARTICLE 13
TRANSPORTATION

13.1 The stores shall be delivered as DDP……………….. (as per INCOTERMS 2020 or
latest version).
13.2 The date of issue of the Certified Receipt Voucher (CRV) shall be considered as the
date of delivery.
13.4 Part shipment of goods is permitted.

ARTICLE 14

27
 AIRLIFT

14.1 Should the BUYER intend to airlift all or some of the stores the SELLER shall pack
the stores accordingly on receipt of intimation to that effect from the BUYER. Such
deliveries will be agreed upon well in advance and paid for as may be mutually agreed.

ARTICLE 15
LIQUIDATED DAMAGES

15.1 In the event of the SELLER‟s failure to submit the Bonds, Guarantees and
Documents, supply the stores/ goods, perform services, conduct trials, installation of
equipment, training and MET as per schedule specified in this Contract, the BUYER may,
at his discretion withhold any payment until the completion of the Contract. The BUYER
may also deduct from the SELLER as agreed, liquidated damages to the sum of 1/100 of
the delay percentage {Delay percentage = (Period of Delay in Delivery in Weeks) x 100 /
(Delivery Period in weeks as per Contract)} of the Contract Price of the delayed/
undelivered stores/ services mentioned above for every week of delay or part of a week,
subject to the maximum value of the Liquidated Damages being not higher than 10% of the
Contract price of the value of delayed stores/ services (Any extension given by the BUYER
for delay attributable to BUYER or Force Majeure Clause to be factored in delivery
period).

15.2 In case the delay in delivery is attributed to the non-receipt of BFE as per mutually
agreed schedule, the delivery period shall be extended accordingly without imposition of
Liquidated Damages.

15.3 LD for AMC/CMC/PBL (where applicable, to be as per RFP).

ARTICLE 16
DENIAL CLAUSE

16.1 In case the delay in delivery is attributable to the SELLER or a non-force majeure event,
the BUYER may protect himself against extra expenditure during the extended period by
stipulating a denial clause (over and above levy of LD) in the letter informing the supplier of
extension of the delivery period. Any increase in statutory duties and/or upward rise in prices
due to the Price Variation Clause (PVC) and/or any adverse fluctuation in foreign exchange
are to be borne by the SELLER during the extended delivery period, while the BUYER
reserves his right to get any benefit of a downward revisions in statutory duties, PVC and
foreign exchange rate. Thus, PVC, other variations and foreign exchange clauses operate only
during the original delivery period.

ARTICLE 17
JOINT RECEIPT INSPECTION (JRI) IN INDIA

17.1 The Parties agree that the Joint Receipt Inspection (JRI) of delivered goods shall be
undertaken on arrival in India at location to be nominated by BUYER. JRI shall be
completed within 120 _____ days (for armament/ammunition)/ 30_____ days (for other than
armament/ammunition) of arrival of goods at Port Consignee. JRI will consist of:-

28
 (a) Quantitative checking to verify that the quantities of the delivered goods
correspond to the quantities defined in this Contract and the invoices.

(b) Check Proof and firing shall be carried out for armament and ammunition, as
per procedure and tests laid down by Indian DGQA/DGAQA/DGNAI (if applicable).

17.2 JRI will be carried out by the BUYER‟s representative. The BUYER will invite the
SELLER with a minimum fifteen (15) days prior notice to attend the JRI for the delivered
goods. The SELLER reserves the right not to attend the JRI. The bio data of the SELLER‟s
representative will be communicated fifteen (15) days prior to the dispatch of goods to
the BUYER for obtaining the necessary security clearance in accordance with the rules
applicable in the BUYER‟s country.

17.3 Upon completion of each JRI, JRI proceedings and Acceptance Certificate (Certificate
of Conformity) as per Annexure VI, will be signed by both Parties. In case the SELLER‟s
representative is not present then the JRI proceedings and Acceptance Certificate shall be
signed by the BUYER‟s representative only and the same shall be binding on the SELLER.
Copy of JRI proceedings and Acceptance Certificate shall be dispatched to SELLER within
30 days of completion of JRI. In case of deficiencies in quantity and quality or defects, details
of these shall be recorded in the JRI proceedings, Acceptance Certificate shall not be issued
and claims raised as per Article on Claims in this Contract. In case of claims, Acceptance
Certificate shall be issued by BUYER‟s representative after all claims raised during JRI are
settled.

17.4 If the BUYER does not perform the JRI as per procedures mentioned above for
reasons exclusively attributable to him, then the JRI in India shall be deemed
performed and the equipment fully accepted.

17.5 In case, JRI necessitates unpacking to the extent that the preserved life of the goods is
affected, SELLER is to undertake re-packing to restore the preserved life to the specified
period at his own cost.

ARTICLE 18
WARRANTY CLAUSE
(To be amended as per requirement and no blanks to be left)

18.1. The SELLER warrants that the goods/services supplied under this Contract conform to
technical specifications prescribed and shall perform according to the said Technical
Specifications.

18.2. The SELLER warrants for a period of months/years/operational hours from the
date of acceptance of stores by Joint Receipt Inspection or date of installation and
commissioning whichever is later/earlier (as applicable on case to case basis), that the
goods/stores supplied under this Contract and each component used in the manufacture
thereof shall be free from all types of defects/failures (including latent and patent defects).

29
18.3 If within the period of warranty, the goods/services are reported by the BUYER to
have failed, to perform as per the specifications, the SELLER shall either replace or
rectify the same free of charge, maximum within ___ days of notification of such defect
by the BUYER provided that the goods are used and maintained by the BUYER as per
instructions contained in the Operating Manual. Warranty of the equipment would be
extended by such duration of downtime. Record of the down time would be maintained by
user in log book. Spares and all consumables required for warranty repairs shall be
provided free of cost by SELLER. The SELLER also warrants that the special oils and
lubricants required for the warranty repair of the equipment shall be provided by the
SELLER himself. All activities including diagnosis, rectification, calibration, transportation
etc, required for making equipment serviceable and available would be the SELLER's
responsibility. The SELLER also undertakes to diagnose, test, adjust, calibrate and
repair/replace the goods/equipment arising due to accidents by neglect or misuse by the
operator or damage due to transportation of the goods during the warranty period, at the
cost mutually agreed to between the BUYER and the SELLER. The SELLER shall intimate
the assignable cause of the failures.

18.4 SELLER hereby warrants that necessary service and repair back up during the
warranty period, including routine maintenance beyond Unit Level (delete if CAMC/AMC
is not part of the Contract), shall be provided by the SELLER and he will ensure that the
cumulative downtime period for the equipment does not exceed of the warranty
period.

18.5 If a particular equipment/goods fails frequently and/or, the cumulative down time
exceeds _ _ % of the warranty period or a common defect is noticed in more than %
of the quantity of goods with respect to a particular item/component/sub-component,
that complete item/equipment shall be replaced free of cost by the SELLER within a
stipulated period of days of receipt of the notification from the BUYER duly
modified/upgraded through design improvement in all equipment supplied/yet to be
supplied and ESP supplied and yet to be supplied.

18.6 SELLER shall associate technical personnel of maintenance agency and QA of

BUYER during warranty repair and shall provide complete details of defect, reasons and
remedial actions for averting recurrence of such defects.

18.7 In case the complete delivery of the Engineering Support Package is delayed beyond
the period stipulated in this Contract, then the SELLER undertakes that the warranty period
for the goods/stores shall be extended to that extent.

18.8 The SELLER warrants that the goods supplied will conform to the Temperature
and Humidity conditions as mentioned at Appendix A to RFP.

Note: Wherever applicable the clause related to MTBF related warranties may be added
as part of this Appendix

ARTICLE 19
INDIGENOUS CONTENT (IC)

30
19.1 The SELLER commits to ensure minimum ______% Indigenous Content (IC) on
cost basis of the Total Contract Price, excluding taxes and duties in case of Buy (Indian-
IDDM), Buy (Indian) cases, Buy (Global-Manufacture in India), Buy (Global) (for Indian
Sellers) or a minimum _____ % of IC on cost basis of the Make portion of the Contract in
case of Buy & Make (Indian) & Buy & Make cases (as applicable). SELLER to adhere to
the indigenisation plan as appended to this Contract and specified in the DPR (where
applicable). The SELLER also commits to comply with all provisions of Appendix*__ to
this Contract document, in this regard.
(*Appendix B to Chapter I of DPP 20)

ARTICLE 20
CLAIMS

20.1 The claims may be presented either:

(a) On Quantity of the stores. In case it does not correspond to the quantity
shown in the Packing List/Insufficiency in packing or,
(b) On Quality of the stores. In case it does not correspond to the quality
mentioned in this Contract.

20.2 The quantity claims for deficiency of quantity shall be presented within 45 days of
completion of JRI and acceptance of goods. The quantity claim shall be submitted to
SELLER in the form at Annexure-VII to this Contract.

20.3 The quality claims for defects or deficiencies in quality noticed during the JRI shall be
presented within 45 days of completion of JRI and acceptance of goods. Quality claims
shall be presented for defects or deficiencies in quality noticed during warranty period at
t he earliest but not later than 45 days after expiry of the warranty period. The quality
claims shall be submitted to SELLER in the form at Annexure-VIII to this Contract.

20.4 The description and quantity of the stores are to be furnished to the SELLER along with
concrete reasons for making the claims. Copies of all the justifying documents shall be
enclosed to the presented claim. The SELLER will settle the claims within 45 days from the
date of the receipt of the claim at the SELLER‟s office, subject to acceptance of the claim by
the SELLER. In case no response is received during this period the claim will be deemed to
have been accepted.

20.5 The SELLER shall collect the defective or rejected goods from the location
nominated by the BUYER and deliver the repaired or replaced goods at the same
location under SELLER‟s arrangement.

20.6 Claims may also be settled by deduction of cost of deliverables under claim from
Bank Guarantees submitted by the SELLER or payment of claim amount by SELLER
through demand draft drawn on Indian Bank, in favour of PCDA HQ, New Delhi, payable
at New Delhi.

31
 20.7 The quality claims will be solely raised by the BUYER and without any
certification/countersigning by SELLER‟s representative stationed in India.

ARTICLE 21
TAXES AND DUTIES

21.1 All taxes, duties, levies and charges which are to be paid for the deliverables,
including advance samples, shall be paid by the parties under the present Contract. All
Indirect Taxes and Duties will be paid at actuals or as quoted by the SELLER, whichever is
lower. In case of any change in the tax structure/rates by BUYER‟s Government, only
incremental change will be paid. The same will not require any Contract amendment.

ARTICLE 22A
TERMINATION

[Applicable for all cases other than Shipbuilding. For non-turnkey acquisition cases against
Chapter II, where milestone payments are not usually applicable, only Clause 22A.1 is
applicable. For Turn-key cases and other acquisition cases where milestone payments are
involved, inclusion of Clauses 22A.2 to 22A.5 may be considered as necessary]

22A.1 Termination for Default in Delivery or Meeting Milestones by the SELLER: The
BUYER shall have the right to terminate this Contract in part or in full in any of the
following cases:

(a) The delivery of the complete material/services is delayed for causes not
attributable to Force Majeure for more than ___ % (___ percent) as related to the
delivery period/ date of the relevant Lot/ Batch as per Contract* or for a period
greater than 50% of the scheduled delivery period for the overall Contract, whichever
is earlier. In which case, the BUYER reserves the right to invoke the PWBG(s) and
Advance Payment Bank Guarantees.

(b) The achievement of a Contractual milestone, as specified at Article 6 of the

Contract is delayed for causes not attributable to Force Majeure for more than ___ %
(___ percent), related to the relevant period for scheduled completion of the milestone
as per Contract or scheduled completion of the subsequent milestone, whichever is
later**, In which case, the BUYER reserves the right to invoke the PWBG(s)s and
APBG(s).

(c) The SELLER is declared bankrupt or becomes insolvent. In which case, the
BUYER reserves the right to invoke the PWBG(s) and APBG(s).

(d) The delivery of material/services is delayed due to causes for Force Majeure
by more than( [•] months).

(e) The BUYER has noticed that the SELLER has utilised the services of any
person, party, firm or institution engaged as Agent, in getting this Contract wherein

32
 any payment is made or penalty is levied, directly or indirectly, on success or failure
of the award of Contract including any such payment made or penalty levied to his
Agents already intimated to MoD. In which case, the BUYER reserves the right to
invoke the PWBG(s), IPBG and APBG(s).

(f) As per decision of Arbitration Tribunal (Article 24).

{Notes:
*The batch/lot may be designated by the BUYER and percentage may be worked out
by BUYER and set out in the Contract as the period of delay which would cause the
amount of Liquidated Damages to reach the maximum as specified in Article 15
(Liquidated Damages), multiplied by a factor of 1.5.

** The percentage, limited to 100, may be worked out by BUYER and set out in the
Contract for certain designated milestones/non-deliverables.}

22A.2 In case of termination of the Contract due to reasons furnished at sub-clause (a) to (e)
above, the BUYER at his/her sole discretion shall be entitled to take over the partially built
material along with all the design, construction drawings, documents and all other material
and equipment procured for the purpose of the project, by paying fair and reasonable value of
the material/ equipment. The methodology for accounting and physical handover of
materials/ equipment shall be done at the book value certified by an independent auditor(s)/
licensed surveyors, as determined by the BUYER from authorised firms or body corporate,
set forth in Appendix [•] of this Contract. If the SELLER has reason to believe that the
independent auditors/ licensed surveyors is not discharging its duties and functions in a fair,
efficient and diligent manner, it may make a written representation to the BUYER and seek
termination of appointment of such independent auditors/ licensed surveyors. Upon receipt of
such representation, the BUYER shall hold a meeting with the SELLER and the independent
auditors/ licensed surveyors for an amicable resolution of the dispute, and if any difference or
disagreement between the BUYER and the SELLER remains unresolved, the dispute shall be
settled as per the dispute resolution procedure. The SELLER shall be liable to provide the
abovementioned, without any conditions, within a period of [•] days, unless otherwise agreed
between the Parties.

22A.3 The material procured by the SELLER for the project needs to be maintained/
preserved/ protected in accordance with the guidelines of the OEM or good industry practice
(as the case maybe) for the respective material or as per general engineering practices so as to
preclude premature degradation in material state and/ or depreciation of value till the date of
handing over to the BUYER or his representatives.

22A.4 If the SELLER fails to hand over the above material and information as per good
industry practice, in accordance with Clause 22A.3 above, the BUYER or its representative
shall have the right to subject the SELLER to debarment and / or action as per Applicable
Law, at its discretion.

22A.5 Risk Purchase. Notwithstanding anything contrary contained in clause 22A.4 above,
the BUYER reserves the right to procure requisite material from alternative sources at the
SELLER's risk, responsibility and cost. The SELLER agrees that all costs incurred by the
BUYER in the procurement of the material from alternative source for fulfilment of the
SELLERs obligations under the Contract shall be recovered from the SELLER.

33
22A.6 Termination in Public Interest:

(a) The BUYER shall have the right to Terminate the Contract in whole or in part
at any time by giving the SELLER a written notice, [•] days prior to such
Termination. Upon expiry of the notice period, the Contract or relevant part thereof,
shall be terminated without prejudice to the rights of the Parties. Where only part of
the Contract is being terminated, the Parties shall have no further obligations in
respect thereof unless expressly provided in the Contract, but shall continue to fulfil
their respective obligations on all other parts of the Contract not being Terminated.

(b) The BUYER shall take over from the SELLER, at the book value certified by
auditors/ licensed surveyors at fair and reasonable price, all unused and undamaged
materials in the course of manufacture that are in the possession of the SELLER or
supplied to the SELLER, at the date of termination; or compensate the SELLER by
the equal amount duly adjusted by the recoverable value of the material as certified by
auditors/ licensed surveyors or as determined by the BUYER.

(c) If the SELLER has reason to believe that the independent auditors/ licensed
surveyors is not discharging its duties and functions in a fair, efficient and diligent
manner, it may make a written representation to the BUYER and seek termination of
appointment of such independent auditors/ licensed surveyors. Upon receipt of such
representation, the BUYER shall hold a meeting with the SELLER and the
independent auditors/ licensed surveyors for an amicable resolution of the dispute,
and if any difference or disagreement between the BUYER and the SELLER remains
unresolved, the dispute shall be settled as per the dispute resolution procedure. The
SELLER shall be liable to provide the abovementioned, without any conditions,
within a period of [•] days, unless otherwise agreed between the Parties.

(d) The BUYER‟s total liability under the provisions of this Contract shall be
limited to the subsequent stage payment due for the equipment payable under the
Contract (or relevant part), including any sums due or becoming due to the SELLER
at the date of Termination.

ARTICLE 22B
TERMINATION

[Applicable for Shipbuilding Contracts only]

22B.1 Termination for Default in Delivery or Meeting Milestones by the SELLER: The
BUYER shall have the right to terminate this Contract in part or in full in any of the
following cases:

(a) The delivery of the complete material/services is delayed for causes not
attributable to Force Majeure for more than ___ % (___ percent), related to the
relevant delivery period as per Contract* or for a period greater than 50% of the
scheduled delivery period for the overall Contract, whichever is earlier. In which case,
the BUYER reserves the right to invoke the PWBG(s) and Advance Payment Bank
Guarantees.

(b) The achievement of a Contractual milestone, as specified at Article 6 of the

Contract is delayed for causes not attributable to Force Majeure for more than ___ %

34
 (___ percent) as related to the relevant period for scheduled completion of the
milestone as per Contract or scheduled completion of the subsequent milestone,
whichever is later**, In which case, the BUYER reserves the right to invoke the
PWBG(s)s and APBG(s).

(c) The SELLER is declared bankrupt or becomes insolvent. In which case, the
BUYER reserves the right to invoke the PWBG(s) and APBG(s).

(d) The delivery of material/services is delayed due to causes for Force Majeure
by more than([•] months).

(e) The BUYER has noticed that the SELLER has utilised the services of any
person, party, firm or institution engaged as Agent, in getting this Contract wherein
any payment is made or penalty is levied, directly or indirectly, on success or failure
of the award of Contract including any such payment made or penalty levied to his
Agents already intimated to MoD. In which case, the BUYER reserves the right to
invoke the PWBG(s), IPBG and APBG(s).

(f) As per decision of Arbitration Tribunal (Article 24).

{Notes:
*The batch/lot may be designated by the BUYER and percentage may be worked out
by BUYER and set out in the Contract as the period of delay which would cause the
amount of Liquidated Damages to reach the maximum as specified in Article 15
(Liquidated Damages), multiplied by a factor of 1.5.

** The percentage, limited to 100, may be worked out by BUYER and set out in the
Contract for certain designated milestones/non-deliverables.}

22B.2 Termination in Public Interest:

(a) The BUYER shall have the right to Terminate the Contract in whole or in part
at any time by giving the SELLER a written notice, [•] days prior to such
Termination. Upon expiry of the notice period, the Contract or relevant part thereof,
shall be terminated without prejudice to the rights of the Parties. Where only part of
the Contract is being terminated, the Parties shall have no further obligations in
respect thereof unless expressly provided in the Contract, but shall continue to fulfil
their respective obligations on all other parts of the Contract not being Terminated.

(b) The BUYER shall take over from the SELLER, at the book value certified by
auditors/ licensed surveyors at fair and reasonable price, all unused and undamaged
materials in the course of manufacture that are in the possession of the SELLER or
supplied to the SELLER, at the date of termination; or compensate the SELLER by
the equal amount duly adjusted by the recoverable value of the material as certified by
auditors/ licensed surveyors or as determined by the BUYER.

(c) If the SELLER has reason to believe that the independent auditors/ licensed
surveyors is not discharging its duties and functions in a fair, efficient and diligent
manner, it may make a written representation to the BUYER and seek termination of
appointment of such independent auditors/ licensed surveyors. Upon receipt of such
representation, the BUYER shall hold a meeting with the SELLER and the

35
 independent auditors/ licensed surveyors for an amicable resolution of the dispute,
and if any difference or disagreement between the BUYER and the SELLER remains
unresolved, the dispute shall be settled as per the dispute resolution procedure. The
SELLER shall be liable to provide the abovementioned, without any conditions,
within a period of [•] days, unless otherwise agreed between the Parties.

(d) The BUYER‟s total liability under the provisions of this Contract shall be
limited to the subsequent stage payment due for the equipment payable under the
Contract (or relevant part), including any sums due or becoming due to the SELLER
at the date of Termination.

ARTICLE 23
LAW

23.1 The present Contract shall be considered and made in accordance to the laws of
Republic of India. This Contract shall be governed by and interpreted in accordance with
the laws of the Republic of India.

ARTICLE 24A
ARBITRATION
(For Foreign Sellers)
24A.1 All disputes or differences arising out of or in connection with the present Contract,
including the one connected with the validity of the present Contract or any part thereof,
shall be settled by bilateral discussions.

24A.2 Any dispute, disagreement of question arising out of or relating to this Contract or
relating to construction or performance (except as to any matter the decision or
determination whereof is provided for by these conditions), which cannot be settled
amicably, shall within sixty (60) days or such longer period as may be mutually agreed
upon, from the date on which either party informs the other in writing by a notice that such
dispute, disagreement or question exists, will be referred to the Arbitration Tribunal
consisting of three arbitrators.

24A.3 Within sixty (60) days of the receipt of the said Notice, one arbitrator shall be
nominated in writing by SELLER and one arbitrator shall be nominated by BUYER.

24A.4 The third arbitrator, who shall not be a citizen or domicile of the country of either of
the parties or of any other country unacceptable to any of the parties shall be nominated by
the parties within ninety (90) days of the receipt of the notice mentioned above, failing
which the third arbitrator may be nominated under the provisions of Indian Arbitration and
Conciliation Act, 1996 (as amended from time to time)18 or by dispute resolution
institutions like Indian Council of Arbitration and ICADR. In case, nomination of third
arbitrator under Indian Arbitration and Conciliation Act, 1996 (as amended from time to
time) or by dispute resolution institutions like ICA and ICADR are not acceptable to the
SELLER, then the third arbitrator may be nominated by the President of International
Chamber of Commerce, Paris, but the said nomination would be after consultation with
both the parties and shall preclude any citizen with domicile of any country as mentioned

36
above. The arbitrator nominated under this Clause shall not be regarded nor act as an
umpire.

24A.5 The Arbitration Tribunal shall have its seat in New Delhi or such other place in
India as may be decided by the arbitrator.

24A.6 The Arbitration Proceedings shall be conducted in India under the Indian Arbitration
and Conciliation Act, 1996 (as amended from time to time)18 and the award of such
Arbitration Tribunal shall be enforceable in Indian Courts only.

24A.7 The decision of the majority of the arbitrator shall be final and binding on the
parties to this Contract.

24A.8 Each party shall bear its own cost of preparing and presenting its case. The cost of
arbitration including the fees and expenses of the third arbitrator shall be shared equally by
the SELLER and the BUYER, unless otherwise awarded by the Arbitration Tribunal.

24A.9 In the event of a vacancy caused in the office of the arbitrators, the party which
nominated such arbitrator, shall be entitled to nominate another in his place and the
arbitration proceedings shall continue from the stage they were left by the retiring arbitrator.

24A.10 In the event of one of the parties failing to nominate its arbitrator within sixty (60)
days as above or if any of the parties does not nominate another arbitrator within sixty (60)
days of the place of arbitrator falling vacant, then the other party shall be entitled after due
notice of at least thirty (30) days to request the President of International Chamber of
Commerce, Paris or dispute resolution institutions in India like Indian Council of Arbitration
and ICADR to nominate another arbitrator as above.

24A.11 If the place of the third arbitrator falls vacant, his substitute shall be nominated
according to the provisions herein above stipulated.

24A.12 The parties shall continue to perform their respective obligations under this
Contract during the pendency of the arbitration proceedings except in so far as such
obligations are the subject matter of the said arbitration proceedings.

ARTICLE 24B
ARBITRATION
(For Indian Private Sellers)

24B.1 All disputes or differences arising out of or in connection with the present Contract,
including the one connected with the validity of the present Contract or any part thereof,
shall be settled by bilateral discussions.

24B.2 Any dispute, disagreement of question arising out of or relating to this Contract or
relating to construction or performance (except as to any matter the decision or
determination whereof is provided for by these conditions), which cannot be settled
amicably, shall within sixty (60) days or such longer period as may be mutually agreed

37
upon, from the date on which either party informs the other in writing by a notice that such
dispute, disagreement or question exists, will be referred to the Arbitration Tribunal
consisting of three arbitrators.

24B.3 Within sixty (60) days of the receipt of the said Notice, one arbitrator shall be
nominated in writing by SELLER and one arbitrator shall be nominated by BUYER.

24B.4 The third arbitrator, shall be nominated by the parties within ninety (90) days of the
receipt of the notice mentioned above, failing which the third arbitrator may be nominated
under the provision of Indian Arbitration and Conciliation Act, 1996 (as amended from time
to time) or by dispute resolution institutions like Indian Council of Arbitration or ICADR at
the request of either party, but the said nomination would be after consultation with both the
parties. The arbitrator nominated under this Clause shall not be regarded nor act as an
umpire.

24B.5 The Arbitration Tribunal shall have its seat in New Delhi or such other place in India as
may be decided by the arbitrator.

24B.6 The Arbitration Proceedings shall be conducted in India under the Indian Arbitration
and Conciliation Act, 1996 (as amended from time to time)18 and the award of such
Arbitration Tribunal shall be enforceable in Indian Courts only.

24B.7 The decision of the majority of the arbitrators shall be final and binding on the
parties to this Contract.

24B.8 Each party shall bear its own cost of preparing and presenting its case. The cost of
arbitration including the fees and expenses of the third arbitrator shall be shared equally by
the SELLER and the BUYER, unless otherwise awarded by the Arbitration Tribunal.

24B.9 In the event of a vacancy caused in the office of the arbitrators, the party which
nominated such arbitrator, shall be entitled to nominate another in his place and the
arbitration proceedings shall continue from the stage they were left by the retiring arbitrator.

24B.10 In the event of one of the parties failing to nominate its arbitrator within sixty (60)
days as above or if any of the parties does not nominate another arbitrator within sixty (60)
days of the place of arbitrator falling vacant, then the other party shall be entitled after due
notice of at least thirty (30) days to request dispute resolution institutions in India like
Indian Council of Arbitration and ICADR to nominate another arbitrator as above.

24B.11 If the place of the third arbitrator falls vacant, his substitute shall be nominated
according to the provisions herein above stipulated.

24B.12 The parties shall continue to perform their respective obligations under this
Contract during the pendency of the arbitration proceedings except in so far as such
obligations are the subject matter of the said arbitration proceedings.

ARTICLE 24C

38
 ARBITRATION
(For Central & State PSEs)
24C.1 In the event of any dispute or difference relating to the interpretation and
application of the provisions of the Contracts, such dispute or difference shall be referred by
either party for Arbitration to the sole Arbitrator in the Department of Public Enterprises to
be nominated by the Secretary to the Government of India in-charge of the Department of
Public Enterprises. The Arbitration and Conciliation Act, 1996 (as amended from time to
time) shall not be applicable to arbitration under this clause. The award of the Arbitrator
shall be binding upon the parties to the dispute, provided, however, any party aggrieved by
such award may make a further reference for setting aside or revision of the award to the
Law Secretary, Department of Legal Affairs, Ministry of Law &Justice, Government of
India. Upon such reference the dispute shall be decided by the Law Secretary or the Special
Secretary/Additional Secretary, when so authorised by the Law Secretary, whose decision
shall bind the Parties finally and conclusively. The Parties to the dispute will share equally
the cost of arbitration as intimated by the Arbitrator.

ARTICLE 24D
ARBITRATION
(For Defence PSUs)

24D.1 In the event of any dispute or difference relating to the interpretation and
application of the provisions of the Contracts, such dispute or difference shall be referred by
either party to the Arbitrator appointed by the Defence Secretary. The award of the Arbitrator
shall be binding upon the parties to the dispute.

ARTICLE 25
PENALTY FOR USE OF UNDUE INFLUENCE

25.1 The SELLER undertakes that he has not given, offered or promised to give, directly or
indirectly any gift, consideration, reward, commission, fees, brokerage or inducement to any
person in service of the BUYER or otherwise in procuring the Contracts or forbearing to do
or for having done or forborne to do any act in relation to the obtaining or execution of the
Contract or any other Contract with the Government for showing or forbearing to show
favour or disfavour to any person in relation to the Contract or any other Contract with the
Government. Any breach of the aforesaid undertaking by the SELLER or any one employed
by him or acting on his behalf (whether with or without the knowledge of the SELLER) or
the commission of any offers by the SELLER or anyone employed by him or acting on his
behalf, as defined in Chapter IX of the Indian Penal Code, 1860 or the Prevention of
Corruption Act, 1988 or any other Act enacted for the prevention of corruption shall entitle
the BUYER to cancel the Contract and all or any other Contracts with the SELLER and
recover from the SELLER the amount of any loss arising from such cancellation. A decision
of the BUYER or his nominee to the effect that a breach of the undertaking had been
committed shall be final and binding on the SELLER.

25.2 Giving or offering of any gift, bribe or inducement or any attempt at any such act on
behalf of the SELLER towards any officer/employee of the BUYER or to any other person in

39
 a position to influence any officer/employee of the BUYER for showing any favor in
relation to this or any other Contract, shall render the SELLER to such liability/penalty as
the BUYER may deem proper, including but not limited to termination of the Contract,
imposition of penal damages, forfeiture of the Bank Guarantee and refund of the amounts
paid by the BUYER.

ARTICLE 26
AGENTS

26.1 The SELLER confirms and declares to the BUYER that the SELLER is the original
manufacturer of the stores referred to in this Contract. The SELLER confirms that he has not
engaged any person, party, firm or institution as a Agent, including his Agents already
intimated to MoD; to influence, manipulate or in any way to recommend to any functionaries
of the Govt of India whether officially or unofficially, to the award of the Contract to the
SELLER, or to indulge in corrupt and unethical practices. The SELLER has neither paid,
promised nor has the intention to pay to any person, party, firm or institution in respect of any
such intervention or manipulation. The SELLER agrees that if it is established at any time to
the satisfaction of the BUYER that the present declaration is in any way incorrect or if at a
later stage it is discovered by the BUYER that SELLER has engaged any such person, party,
firm or institution and paid, promised or has intention to pay any amount, gift, reward, fees,
commission or consideration or consideration to such person, party, firm or institution,
whether before or after the signing of this Contract, the SELLER will be liable for any or all
of the following actions:-

(a) To pay to the BUYER any such amount paid as gift, reward, fees, commission
or consideration along with interest at the rate of 2% per annum above LIBOR rate.

(b) The BUYER will also have a right to put on hold or cancel the Contract either
wholly or in part, without any entitlement or compensation to the SELLER who shall
in such event be liable to refund all payments made by the BUYER in terms of the
Contract along with interest at the rate of 2% per annum above LIBOR rate.

(c) The BUYER will also have the right to recover any such amount referred in
(a) and (b) above from other Contracts of the SELLER with the Government of India.

(d) At the discretion of the BUYER, the SELLER shall be liable for action as per
extant policy on Putting on Hold, Suspension and Debarment of Entities.

ARTICLE 27
FORCE MAJEURE

27.1 Should any Force Majeure circumstances arise, each of the Contracting party shall be
excused for the non-fulfillment or for the delayed fulfillment of any of its Contractual
obligations, if the affected party within ( days) of its occurrence informs in a written form
the other party.

27.2 Force Majeure shall mean fires, floods, natural disasters or other acts, that are
unanticipated or unforeseeable and not brought about at the instance of, the party claiming to
be affected by such event, or which, if anticipated or foreseeable, could not be avoided or

40
provided for and which has caused the non-performance or delay in performance, such as
war, turmoil, strikes, sabotage, explosions, beyond the control of either party.

27.3 A party claiming Force Majeure shall exercise reasonable diligence to seek to
overcome the Force Majeure event and to mitigate the effects thereof on the performance of
its obligations under this Contract.

27.4 Provided the acts of The Government or any state parties of the SELLER which may
affect the discharge of the SELLER‟s obligation under the Contract shall not be treated as
Force Majeure.

ARTICLE 28
NON DISCLOSURE OF CONTRACT DOCUMENTS

28.1 Except with the written consent of the BUYER/SELLER, other party shall not
disclose the Contract or any provision, specification, plan, design, pattern, or information
wi th propriet ary m arkings thereof to any third party, unless required by either
Government of the Parties or by the SELLER‟s Suppliers solely for the purpose of
performing the obligations under the Contract.

ARTICLE 29
NOTICES

29.1 Any notice required or permitted by this Contract shall be written in English language
and may be delivered personally or may be sent by FAX, E-Mail, Registered Post, Speed
Post or registered pre paid airmail, addressed to the last known address of the party to
whom it is sent.

ARTICLE 30
TRANSFER AND SUB-LETTING

30.1 The SELLER has no right to give, bargain, sell, assign or sublet or otherwise dispose
of the Contract or any part thereof, as well as to give or to let a third party take benefit or
advantage of the present Contract or any part thereof except, with the prior consent of the
BUYER, in case of merger, amalgamation, consolidation, acquisition, change in control or
similar transaction. For granting such consent, BUYER may require SELLER to enter into
a Novation Agreement.

ARTICLE 31
PATENTS AND OTHER INDUSTRIAL PROPERTY RIGHTS

31.1 The prices stated in the present Contract shall be deemed to include all amounts
payable for the use of patents, copyrights, registered charges, trademarks and payments for
any other industrial property rights.

31.2 SELLER shall indemnify the BUYER against all claims from a third party at any time

41
 on account of the infringement of any or all the rights mentioned in the previous paragraphs,
whether such claims arise in respect of manufacture or use. The SELLER shall have the
sole responsibility to defend/settle such claim(s). The SELLER shall be responsible
for the completion of the supplies including spares, SMTs/STEs, technical literature and
training aggregates irrespective of the fact of infringement of the supplies, irrespective of
the fact of infringement of any or all the rights mentioned above.

ARTICLE 31A
BUYER‟S RIGHT TO OPTIMISE LIFE CYCLE SUPPORT COSTS AND SYSTEM
ENHANCEMENTS THROUGH INDIGENOUS ECOSYSTEM

(This clause is not applicable for fully funded Contracts for the design and development
either directly or through DRDO or for the relevant part if design and development of any
part of the Contract deliverables is fully funded)

31A.1 SELLER‟s IPRs. BUYER acknowledges the Intellectual Property Rights of the
SELLER associated with the Articles being supplied against this Contract and seeks to
remunerate the SELLER the price as per provisions of this Contract for the supply of the
Articles and IPR component associated, for owning the Article and its unlimited use and/or
exploitation, as the case may be, through its life cycle and beyond. The BUYER takes note
that the SELLER is liable to receive any further remuneration only if the SELLER‟s services
towards its maintenance/ upkeep/ upgrade etc are utilised by the BUYER.

31A.2 BUYER‟s Right. The BUYER acknowledges that it shall be free to explore other
prevailing designs, development and manufacturing ecosystem prevailing within India to
design and manufacture equipment/ systems for platforms and assemblies/ sub-assemblies for
equipment/ systems. The BUYER shall have the right to improve the performance of the
platform/equipment/system by using alternative equipment/ systems/ weapons/ sensors/
assemblies from other Indian/ global sources. In order to utilise alternate resources for
improving the performance/ utility/ supportability and optimising the obsolescence
management/ life cycle costs of platforms/ equipment/ systems in service, the BUYER
reserves the right to, subject to the provisions of this Condition and to the rights of third
parties, undertake any or combination of the following:-

(a) Replace Equipment/ Systems/ Weapons/ Sensors/ assemblies with suitable

substitutes either sourced from other global and/ or indigenous sources or have it
exclusively and independently developed and interfaced with the Articles without
infringing the SELLER‟s/Third Party‟s IPRs. Towards this, the BUYER may resort
to any of the following to enable seamless interface/ integration:-

(i) Provide interface/ fitment details as physically drawn from the Article
by their own efforts, without sharing the SELLERs documents with any third
party.

(ii) Define the relevant interface protocols and requirements to the

SELLER or seek modular design features in the Articles for ease of
replacement on mutually agreeable terms between the BUYER and the
SELLER.

42
 (iii) To seek SELLER‟s assistance for interfacing by paying a mutually
agreeable and reasonable price. For the purpose of assessing the reasonability
of the prices, the price may be compared with similar works charged by the
SELLER and/ or other Contractors of equal standing. Any effort by the
SELLER to seek exploitative pricing for such services may be deemed as
unfair and monopolistic business practices and the BUYER may seek suitable
remedy as deemed appropriate including legal remedy under Competition Act
of India 2002.

(iv) If replacement as at Para 31A.2(a) above requires any validation/

certification by the SELLER, the SELLER may provide the same against
payment of fair and reasonable price as mutually agreed. The BUYER may
expect such service as a matter of goodwill from the SELLER and expects that
such service will not be denied unless for reasons of technical infeasibility. In
any case, denial of such service from the SELLER or the BUYER‟s own
choice may entail the BUYER to make alternative arrangements for such
validation/ certification at his own risk.

(b) Encourage the SELLER/ third party and the Indian industries to collaborate
and manufacture such items under license either by mutual arrangement between
them or through Inter Governmental Agreement, as maybe required.

(c) To design, develop and produce general purpose trainers, simulators and
associated equipment with respect to Articles;

(d) To carryout modifications to suit the BUYERs specific requirements and

improvements sought from time to time. In addition to the above, the SELLER hereby
agrees to provide to the BUYER, the right to undertake improvements and upgrades
in relation to the Article or any parts thereof, for no additional fee. The SELLER
agrees that the BUYER, upon undertaking such improvements and upgrades will
become and shall continue to remain the owner of such improved and upgraded
Article and any intellectual property rights generated in respect of such improvements
and upgrades shall unconditionally vest in the BUYER. The BUYER at its sole
discretion shall register any such improvements and upgrades in relation to design,
process or new Article under the provisions of Applicable Laws.

(e) The BUYER shall ensure that information released to any third party under
sub-clause 31A.2(d) is limited to the task for which the third party is engaged. The
BUYER shall ensure that all disclosures to any third party shall be under express
conditions of confidentiality between the BUYER and the third party.

(f) To pursue such actions including the above and also to manufacture requisite
spares by ab-initio design or reengineering for safe and unhindered use of Articles
(including platform/ equipment/ systems), if the SELLER and/ or third parties fail to
support the Articles or part thereof in a reasonable timeframe and price due to
dynamics of obsolescence/ insolvency/ winding up operations/ suspension of
production line/ corporate acquisitions etc and other reasons solely attributable to the
them.

Conditions of Use

43
31A.3 The rights set out at Para 31A.2 of this clause may be exercised by the BUYER
(including its constituent departments) under the following conditions:-

(a) The SELLER may forfeit the warranty on the Articles or part thereof if the
above right is exercised during the warranty.

(b) Where the Articles or any part thereof is not covered under maintenance by
the SELLER. If the BUYER exercises any of the above options on an Article under
maintenance by the SELLER, the SELLER shall have the right to exclude their
maintenance liability on that part of the Article or cover it under mutual agreement.

(c) The SELLER‟s assurance on the designed life of the Articles shall continue to
cover the part unaffected by such modifications/improvements/upgrades. The
SELLER shall continue to provide the product updates/ bulletins as applicable. Such
updates/ bulletins need not take into consideration the
modifications/improvements/upgrades carried out by the BUYER unless the work on
interfacing/ validating/ certification is assigned to the SELLER by the BUYER or his
representatives/ agents in sub-clause 31A.2 (a) (iii) and (iv) and if suchitems are
manufactured under licence by the SELLER under sub-clause 31A.2 (b).

(d) The right shall not dilute the SELLER‟s liability for providing product life
support for the period laid down at Clause [.].

ARTICLE 32
AMENDMENTS

32.1 No provision of this Contract shall be changed or modified in any way (including this
provision) either in whole or in part except by an instrument in writing made after the date
of this Contract and signed on behalf of both parties and which expressly states to amend
this Contract.

ARTICLE 33
PRODUCT SUPPORT
(to be prepared as per RFP requirement for ESP/AMC/CMC/PBL)

33.1 The SELLER agrees to provide Product Support for the stores,
assemblies/subassemblies, fitment items and consumables, SMTs/STEs subContracted from
other agencies/manufacturer by the SELLER for a minimum period of ( years) including
(___years) of warranty period after the delivery of (name of equipment). Even after the said
mandatory period, the SELLER would be bound to give at least two years notice to the
Government of India prior to closing the production line so as to enable a Life Time Buy of
all spares before closure of the said production line. The SELLER agrees to undertake
PRODUCT SUPPORT CONTRACT for a minimum period of ( months), extendable till
the complete Engineering Support Package is provided by the SELLER, at a time, at terms and
conditions mutually agreed between the SELLER and the BUYER. This, however, shall not
restrict the BUYER from directly sourcing sub-equipment/sub-assembly and spares from
their respective OEMs/sub-vendors on completion of warranty. In case the sub-
equipment/sub-assembly/parts require tuning/calibration/integration by the SELLER prior
replacement, the same is to be undertaken by the SELLER at reasonable cost.

44
33.2 In the event of any obsolescence during the above mentioned period of product support
in respect of any component or sub-system, mutual consultation between the SELLER and
BUYER/Indian manufacturer will be undertaken to arrive at an acceptable solution including
additional cost, if any.

33.3 Any improvement/modification/up gradation being undertaken by (M/s name of

company) on (name of equipment) or their sub suppliers will be communicated by the
SELLER to the BUYER and, if required by the BUYER, these will be carried out by the
SELLER at BUYER's cost.

33.4 The SELLER agrees to provide an Engineering Support Package as specified in

Article 37 as modified after confirmatory MET at no extra cost. The SELLER agrees to
undertake the repair and maintenance of the equipment, SMTs/STEs test set up,
assemblies/sub assemblies and stores supplied under this Contract as product support
Contract specified at para 33.1 above or provision of complete ESP to the BUYER viz EME
whichever is later, as per terms and conditions mutually agreed between the SELLER and the
BUYER.

(Note: The underlined language should be deleted in cases where it is not applicable.)

ARTICLE 33A
LIFE CYCLE SUPPORT CONTRACT
(To be included, if applicable, and as specified in RFP)

33A.1. A life cycle support contract (LCSC) would be signed along with the main acquisition
contract for all equipment. Life-cycle support for all types of equipment through its service
life would be provided by the Seller through a LCSC, which inter-alia would include supply
chain to ensure platform supportability and availability in accordance with specifications,
supply of spares, special tools, repair of defective equipment / modules / LRUs, services of
specialists, creation of maintenance eco-system, obsolescence management, etc.

33A.2 The Seller will provide life-cycle support through a Life Cycle Support Contract
(LCSC) as per the agreed terms to provide product support for __ years for supply of spares,
repairs and Man-day rates of Specialists. The Seller would have to finalise the terms for the
life time product support and the LCSC along with the current contract only. LCSC, will also
include active obsolescence management, wherein even after the mandatory period, the Seller
would be bound to give at least two years notice to the Government of India prior to closing
the production line to enable a Life Time Buy of all spares. Under the LCSC, Spares and
Repair support would be provided by the Seller through the following Rate contracts which
would be signed with the main contract:-

(a) Itemised Spare Parts Price Lists (ISPPL). ISPPL for all Spares or Line
Replaceable Units (LRUs) of the equipment along with their Base price, annual
escalation, delivery period and the MTBF (where applicable) be provided, at the time
of submission of offer. The ISPPL shall also include details of the source, especially
for items which are COTS, bought-out, proprietary, etc. ISPPL shall also indicate
interoperability of spares across projects, in case spares/equipment is already inducted
in the Indian Armed Forces. The Seller would submit a comprehensive Itemised Spare

45
Parts Price Lists (ISPPL) comprising the following: -

(i) Complete Part Identification List (PIL) for all Spares or Line
Replaceable Units (LRUs), along with corresponding unique part numbers.
The list is not to be limited to MRLS (Depot spares) or On-board Spares
(spares along with the system) and should comprise entire list of spares of the
equipment.

(ii) Base Price list of each of the spares along with annual escalation at
time of submission of the offer.

(iii) Delivery Period of each spare after receipt of Order.

(iv) Mean Time Between Failure (MTBF), where applicable.

(v) Terms and conditions for supply of spares.

Table -Illustrative Format for Submitting Details of Spares

Ser Part Description Qty/MoQ Unit Price List Deliver If
No. No. (where (along with annual y Period Recommended,
applicable) escalation) as MRLS

Note:- The following details be included in the spare parts submission offer:-

(i) Sourcing of spares wrt COTS and Proprietary.

(ii) Interoperability of spares across projects, in case the

part/system/sub-system, etc. is already inducted in some other equipment
currently in service with the Indian Armed Forces, or has been contracted
for supply to the Indian Armed Forces.

(b) Repairable Items Price Lists (RIPL). RIPL would comprise of all
repairable sub systems/ blocks and units. Wherever applicable, source of components
required for repairs of units should also be specified. RIPL will also indicate
reparability of these in India. The Seller should submit the RIPL comprising the
following:-

(i) Complete catalogue of repairable spares (at LRU level), along with
their Part numbers. Source of components required for repairs of units should
also be specified, wherever applicable.

(ii) Base Price list for repairs clearly indicating repairs that can be
undertaken in India and at OEM premises. RIPL will comprise of all
repairable sub systems/ blocks and units.

(iii) Terms and conditions for undertaking repairs be specified.

46
 (i) Delivery Period after receipt of order must be mentioned.

(ii) For imported equipment, the impetus is to undertake repairs in India.

Repair list in such cases should clearly segregate the list of items that can be
repaired in India and those that have to be undertaken to the OEM premises.

Table - Illustrative Format for Submitting Details of Repairable Spares

Ser Part Description Repairs to be Unit Price Lists Delivery
No. No. Undertaken Qty (along with period
annual
escalation)
In India OEM
premise

Note: - The following aspects to be ensured:-

(i) Repair costs to be all-inclusive (collection/delivery ex-Depot).

(ii) Warranty post repairs will be as specified in the contract
document.

(c) Man-Day Rates for Services/Special Tools. Man-day Rates for

Services/Special Tools of Specialists (where applicable) should be specified
corresponding to the categorisation of specialists, e.g. Designers, Engineers and
Technicians, as applicable. Man-day Rates for hiring Special Tools, where applicable
will also be provided.

33A.3 Online Inventory Management System (OIMS). (Applicable for all cases beyond
Rs 300 Crores. Optional for delegated power cases) To leverage information
technology and ensure expeditious order placement as well as timely product support, the
Seller, shall be required to provide an Online Inventory Management System (OIMS), as per
mutually agreed format, to place Purchase/Repair Orders (as applicable) online. The OIMS
shall also provide feature to track the delivery status of the items. Further the OIMS should
provide dashboard for intimation on obsolescence and offer of lifetime buy along with
provision for user to interact with the OEM for technical assistance etc. The detailed scope
and features of OIMS shall be finalised during the negotiations on LCSC. The OIMS may be
decided on case to case basis.

33A.4 Active Technology Obsolescence Management. Seller will indicate the

methodology on how the Seller intends to undertake Active Obsolescence Management
through life cycle of equipment which would include upgradation of system/ subsystem/ units
on completion of its fair service life. The Seller/OEM (as applicable) shall also intimate
Buyer on likely technology obsolescence of various sub-assemblies/units/modules of
equipment through an Annual Bulletin. In case of impending obsolescence of components,
bulletin should specify either alternate item or option for life-time buy as under:-

(a) The Seller/OEM (as applicable) will notify the Buyer not less than three years
before the closure of its production line about the intention to close production of
equipment for provision of purchasing spare parts, before closure of the said

47
 production line.

(b) Three years prior to completion of design/service life of equipment, the

Seller/OEM (as applicable) will submit techno-commercial proposal for upgradation
of equipment, wherever applicable, to mitigate technology obsolescence and for
ensuring product support for next 15 years.

ARTICLE 34
TRAINING

34.1 The SELLER shall provide the following training to the personnel of the BUYER:-

(a) Operator Training.

(i) (___) working days) at SELLER‟s premises, to a maximum of ( )
personnel in ( ) groups of ( )each.
(ii) ( ) working days per group in India, to a maximum of (_) personnel in
( ) groups of ( )each.
(b) Repair and Maintenance Course.
(i) Field Repair/Maint. ( weeks) at SELLER‟s premises for (composition of
the team to be specified).
(ii) Base Repair/Maint. ( weeks) at SELLER, premises for (composition of
the team to be specified).
(c) The SELLER will provide training to the QA reps of the BUYER for ( )
working days on various aspects of quality assurance of equipment.
(d) The syllabus of training as above will be decided within ___ months of MET by
the BUYER and shall meet the needs of repair and maintenance of the complete
equipment, SMTs/STEs, test set up, assemblies/sub- assemblies as per the existing repair
concept of Indian Army as covered under Article 37.
34.2 The training for the first group of operators and users will be organised and
conducted so that its termination does not go beyond ( days) of the scheduled delivery
of the first equipment. Training of second group of operator and users will be conducted
within (__) months thereafter. Repair and maintenance course will be conducted within (__)
months of signing of the Contract and before expiry of warranty.

ARTICLE 35
OPTION CLAUSE

35.1 The BUYER shall have the right to place separate order on the SELLER on or
before------------------- (-------- year from the date of this Contract) for the main equipment,
spares, facilities or services as per the cost, terms and conditions set out in this Contract up to a
maximum of 50% quantity and during the original period of Contract provided there is no
downward trend in prices. The price of the system, spares etc shall remain same till ------ year
from the effective date of the Contract.

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 ARTICLE 36
BUYER FURNISHED EQUIPMENT (BFE)

36.1 The following equipment will be provided by the BUYER at his own expense:-

(a)
(b)
(NAME OF THE EQUIPMENTS TO BE PROVIDED BY THE BUYER ALONGWITH
THE MAIN EQUIPMENT) This provision is in addition to the provisions set forth in
Annexure III (Statement of Work).

ARTICLE 37
ENGINEERING SUPPORT PACKAGE

37.1 Repair Philosophy. The Engineering Support Philosophy shall conform to repair
philosophy as follows:-

(a) „O‟ Level. Includes Unit and Field Repairs (1st & 2nd Level).
(b) „I‟ Level. Includes 3rd level Intermediate Repairs by Corps Zone
workshop/Dockyard/Base Repair Depot or other similar service organisation.
(c) „D‟ Level. Includes 4th level extensive Base overhauls, Depot level Repairs
which are either routine and planned or necessitated due to major repairs/renewal
requirements.
37.2 Accompanied Accessories/User Replaceable Parts/Expendables. Accompanied
accessories/User Replaceable Parts/Expendables as per the list, which will be prepared by the
BUYER within __ months of completion of operator and operator trainer training. for the
amount specified at Ser No __ of Annexure I. The list of items required to be supplied will be
taken from Appendix A to Annexure IX duly incorporating Adequacy Clause (Article 37.9
below refers).

37.3 Spares. Spares for carrying out maintenance and repair up to component level will
be provided by the SELLER as per the list finalised by the Buyer in the MET, at no extra cost
and within the amount specified at Ser No ____of Annexure I. The list of spares required to be
supplied will be taken from Appendix A to Annexure IX duly incorporating Adequacy Clause.
The spares are required to be categorized in four categories as follows: -

(a) Manufactured by Seller as OEM and can be sourced as per Part No.
(b) Bought out items and customized by the OEM for the specific purpose and
such customization would require OEM intervention.
(c) Bought out from other OEMs/Third Party as specialised items and used

49
 without any customization. Such items can be sourced by quoting their Part
No./Identification No. as given by OEM/Third Party and directly utilised.
(d) General Engineering items/COTs which can be sourced by stating the relevant
standards and item description.

(Note. The OEM Part No. /Identification No. of items in addition to Seller assigned part
number are also required to be specified)

37.4 Special Maintenance Tools, Special Test Equipments and Test Jigs
(SMTs/STEs/Test Jigs). SMTs/STEs/Test Jigs for carrying out maintenance and repair up
to ( ) level of repair will be provided by the SELLER as per the list finalised by the BUYER
in the MET, at no extra cost and within the amount specified at Ser No____ of Annexure-I.
The list of equipment required to be supplied will be taken from Appendix A to Annexure
IX duly incorporating Adequacy Clause.

37.5. Technical Literature. The SELLER shall provide __ sets of Technical Literature.
(Specify format to the SELLER if required). Inadequacy/voids in Technical Literature
identified during the Maintenance Evaluation Trials will be rectified by the SELLER at the
time of delivery of Technical Literature to the satisfaction of maintenance agency of the
BUYER.

37.6 Adequacy Clause. The SELLER confirms to the BUYER that the range and
depth of Accompanied Accessories/User Replaceable Parts/Expendables, Spares and
SMT/STE/Test Jigs given in Appendix__of Annexure__of this Contract are complete and
exhaustive for use and carrying out repairs up to ( ) level for the equipment procured under
this Contract by the BUYER. Any additional items, spares, tools and equipment up to the
lowest level needed for use, maintenance and repair will be supplied by the SELLER at
mutually agreed prices within 60 days of receipt of notification from the BUYER for the
period specified in Article 33 (PRODUCT SUPPORT). The SELLER also confirms to the
BUYER that the overall cost of one set of complete list of spares and parts used to make
one functional (Equipment ) as per the specifications given at Annexure__ (Technical
Specifications) along with accompanied accessories as per Annexure__ as per the cost given
in Appendix__of Annexure__ will not exceed the cost of the equipment as given in
Appendix. The SELLER also confirms that, if two different prices have been given for the
same/similar item in Appendix__to Annexure__, then the lower price quoted will prevail. In
case, the quoted accessories has several items viz Sampling Accessory Kit and add up price
of these items is higher than the quoted price of the accessory then the price will be
lowered/adjusted proportionately for the items. The BUYER would have the option to amend
the MRLS proposed by the SELLER within______years of the expiry of the warranty
period. The SELLER would either „Buy Back‟ the spares rendered surplus or exchange them
on cost to cost basis with the spares as required by the BUYER. The said spares would be
purchased/replaced by the SELLER, based on the prices negotiated in the Contract. The
„Buy Back‟ clause would not be applicable for additional spares included by the BUYER in
MRLS during FET and SE stage, as brought out in the RFP.

37.7 A malicious code certificate as given in Appendix K&M (Chapter II & IV

respectively) to the RFP is attached herewith.

50
37.8 Comprehensive Annual Maintenance Contract (to be included in lieu of
37.1 To 37.4 above in cases with CAMC). The Repair and Maintenance of ____ will be
catered through Comprehensive Annual Maintenance Contract (CAMC), inclusive of all
spares, for __ (in words) years post completion of warranty. The CAMC would include
requisite periodic maintenance, defect rectification, calibration and certification, if any (as
elaborated at Appendix K to the RFP). During the period of Warranty, the SELLER would
undertake all preventive and corrective maintenance as required for CAMC (this clause is to
be included in case no maintenance training is envisaged).

ARTICLE 38
ACCESS TO BOOK OF ACCOUNTS

38.1 In case it is found to the satisfaction of the BUYER that the SELLER has engaged an
Agent, or paid commission or influenced any person to obtain the Contract as described in
clauses relating to Agents and Penalty for Use of Undue Influence, the SELLER, on demand
of the BUYER shall provide necessary information/inspection of the relevant financial
documents/information, including a copy of the Contract(s) and details of payment terms
between the SELLERs and Agents engaged by him.

38.2 Testimonial and Signature Clause. The authorised representative of the SELLER
should be shown to have been so authorised by the Resolution of the Board of Directors of
the Company of the SELLER or duly authorised by the Memorandum/Articles of
Association of the Company along with supporting documents for the same.

ARTICLE 39
SEVERABILITY

39.1. Should any of the provisions of this Contract be found to be invalid, or unenforceable,
the Parties agree to continue performance on the remaining provisions of the Contract not so
affected, unless the ineffectiveness of such provision would result in such a material change
as to cause completion of the transaction contemplated hereby to be unreasonable, in which
case the Parties shall negotiate in good faith to reform the Contract. If the Parties are unable
to reach agreement on a reformation of the Contract, they shall submit the issues to the
disputes resolution process discussed in Article 24- Arbitration.

ARTICLE 40
SURVIVAL AFTER TERMINATION OR EXPIRATION

40.1. The following Articles shall survive the Termination or expiration of this Contract
(Articles to be added as appropriate):-

(a) Arbitration

(b) Non-Disclosure of Contract Documents

(c) Title and Risk of Loss

51
 (d) Warranty

(e) Law

(f) Penalty for Use of Undue Influence

(g) Patents and Other Industrial Property Rights

LEGAL ADDRESSES OF THE CONTRACTING PARTIES

1. Legal addresses of both Contracting parties:

SELLER BUYER:
……………………………………………. GOVERNMENT OF INDIA
……………………………………………. MINISTRY OF DEFENCE
……………………………………………. SOUTH BLOCK
……………………………………………. NEW DELHI -110011
REPUBLIC OF INDIA

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52
 Annexure I
(Refers to Articles 1, 5 and 34 of
Standard Contract Document)

STATEMENT OF PRICES AND QUANTITIES AND PAYMENT STAGES

1. Statement of Prices and Quantities

Ser Items Qty Unit Total Total Cost Indicative Rate of Remarks
Cost Cost (including Taxes & Duties used
all taxes to arrive at Total
& duties) Cost (as applicable)

GST/ Custom
IGST (%) Duty (%)
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix)
A. Cost of Basic Equipment. Full
break-up details may be given.
B. Cost of Installation /
Commissioning/ Integration
(where applicable)
B1 Cost of Buyer Nominated
. Equipment (if applicable)
C Cost of Transfer of Technology
(where applicable).
D. Cost of Manufacturer‟s
Recommended List of Spares as
per the format given atAnnexure I
to Appendix E. In case equipment
is already in usage, the spare parts
requirement must be specific rather
than being based on MRLS.
E. Cost of Special Maintenance
Tools and Special Test
Equipment as per format given at
Annexure II to Appendix E.
F. Cost of Operator‟s Manual and
Technical Literature (in English
Language) including Illustrated
Spare Parts List as per Annexure
III to Appendix E.
G. Cost of Training Aids such as
simulators, cut out models, films,
charts etc as recommended by the
supplier as per Annexure IV to
Appendix E.
H. Cost of recommended period of
Training excluding the cost of
travel and boarding and lodging.
This should be given under the
following two heads as per
Annexure IV to Appendix E.
(a) In India.
(b) Abroad.
J. Cost of Preservation/De- To be paid
preservation (if applicable) on actuals
K. Any other cost (to be specified).
L. Freight and Transit Insurance

53
Ser Items Qty Unit Total Total Cost Indicative Rate of Remarks
Cost Cost (including Taxes & Duties used
all taxes to arrive at Total
& duties) Cost (as applicable)

GST/ Custom
IGST (%) Duty (%)
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix)
Cost (where applicable).
M. AMC/CMC/PBL Cost giving
year-wise break-up (where
applicable).
N. Total Cost (Total of Serial A to L) # # This will be
used in
determining
L1 vendor
(duly
applying
provisions of
Para 1
above).

O. Foreign Exchange component of This will be

the proposal. (for Indian Sellers with
only) reference to
Para 1.2.2 of
Appendix L.
P. CDEC (if applicable), its
authority and amount for which
required.

Total (in words)

2. Stages of Payment

2.1 For cases other than Shipbuilding

(Note : The Payment and delivery schedule is to be incorporated as specified in the RFP and
as ratified during CNC)

2.1.1. For Delivery in a Single Lot

Sl Activity Delivery Scheme for Scheme for submission Remarks

Timelines Payment and Return of Advance
(T0 + Payment Bank Guarantees
Wks)
(a) Signing of APBG of equivalent amount SELLER may choose to
10% of the
Contract to be submitted provide multiple APBGs, if
total Contract
return is expected with each
price
delivery
(b) On submission of APBG of equivalent amount In case this stage is not
Detailed Project to be submitted required, 15% of total
5% of the total
report (DPR) and Contract price can be
Contract price
Project PERT made on signing of
Chart. Contract.

54
(c) On 55 to 75% of APBG is to be returned on Percentage of payment for
Delivery/Dispatch the cost of completion of delivery of all delivery of equipment/
(as applicable) of Equipment/ equipment/ system (and system shall be decided on
all equipment/ System (and associated spares if the complexity/ scope of
system (and associated applicable). installation, STW and
associated spares spares if commissioning.
if applicable) applicable) In case delivery of
(d) On delivery of documentation and/or
documentation & training can be completed In case Installation/ STW/
Training only on commissioning of Commissioning is not
the equipment and cost of required, the complete
55 to 75% of
documentation/training is payments are to be done on
the cost of
substantial (5%-8%, as completion of deliveries and
documentation
specified), then APBG is to APBG(s) are to be returned.
and training
be returned on pro-rata basis
as per completion of
delivery of equipment,
documentation and training.
(e) On Installation/
STW/
Commissioning
and Final 10 to 30% of
Acceptance and the cost of
completion of deliverables
delivery of
documentation
and training.

2.1.2. For Delivery in Lots/ Batches

Sl Activity Delivery Scheme for Scheme for submission Remarks

Timelines Payment and Return of Advance
(T0 + Payment Bank
Wks) Guarantees
(a) Signing of 15% of the APBG of equivalent amount SELLER may choose to
Contract total to be submitted provide multiple APBGs, if
Contract return is expected with each
price Lot/ Batch/ Delivery

(b) On submission of APBG of equivalent amount In case this stage is not

5% of the
Detailed Project to be submitted required, 15% of total
total
report (DPR) and Contract price can be made
Contract
Project PERT on signing of Contract.
price
Chart.
(c) On Delivery of all equipment/ system

(i) 1st Lot/ Batch 55 to 75% of APBG is to be returned on Percentage of payment for
the cost of pro-rata basis on delivery of delivery of equipment/
Equipment/ each lot/batch. APBG system shall be decided on
System of pertaining to documentation the complexity/ scope of
the Lot and training can be returned installation, STW and
(ii) 2nd Lot/ Batch 55 to 75% of on delivery of a particular commissioning.
the cost of lot/batch (to be specified).
Equipment/
System of In case delivery of
the Lot documentation and/or
training can be completed
(d) Delivery of 85% of the only on commissioning of
Documentation cost of the equipment and cost of
Documentati

55
 Sl Activity Delivery Scheme for Scheme for submission Remarks
Timelines Payment and Return of Advance
(T0 + Payment Bank
Wks) Guarantees
on documentation/training is
substantial (5%-8%, as
(e) Completion of 85% of the specified), then APBG is to
Training cost of be returned on pro-rata
Training basis as per completion of
delivery of equipment,
documentation and training.
(f) On Installation/ STW/ Commissioning and Final Acceptance
(i) 1st Lot/ Batch 10 to 30% of
the cost of
Equipment/
System of
the Lot
(ii) 2nd Lot/ Batch 10 to 30% of
the cost of
Equipment/
System of
the Lot

2.2 For Shipbuilding Cases. The Vessel Cost (Total of Sls (b) to (k) of Appendix G
of Schedule I to Chapter IV of DPP, excluding Cost of ToT) will be paid as per following
stages on completion of respective stage activity (The Vessel Cost will not include Costs
towards Handling of B & D Spares and Project Monitoring System, the payment stages of
which have been specified at Paras 1(e) and 1(f) of Appendix F of Schedule I to Chapter IV
of DPP respectively. The Payment Stages of ToT, if applicable, will be specified separately):-

2.2.1 For Commissioned Vessels. 15 stages payment with pre-requisites as

elaborated below:-

Stage % of Activity Schedule To

Vessel‟s be finalised
Fixed cost during CNC

I 10% With signing of Contract (10% of Contract cost)

II 10% (a) Proof of ordering Steel/Hull Construction Material

(b) Submission of Cardinal date
programme/Production PERT
III 5% (a) Submission of Drawing Schedule
(b) Submission of detailed network of activities including
Work Breakdown up to launching of vessel
(c) Submission of main hull structural drawing
(d) Order for all major pre-launch items finalised and
placed
IV 5% (a) Completion of 10% physical progress of construction and
submission of weight analysis for first ship of the series only
(b) Submission of equipment installation schedule

56
 Stage % of Activity Schedule To
Vessel‟s be finalised
Fixed cost during CNC

V 5% (a) Completion of 15% physical progress of construction

and submission of weight analysis for first ship of the series
only
(b) Completion of main engines, gear box girders &
seatings/m/c seatings as applicable to erecting of 60% hull
VI 5% (a) Completion of 25% physical progress of construction
and submission of weight analysis for first ship of the series
only
(b) All access holes to be cut and preparation of
main seatings in m/c compartment
(c) Placement of order for major equipment & systems
affecting conduct of basin trials
VII 5% (a) Pressure test of built in tanks
(b) Manufacture/procurement of W/T doors and
hatches
(c) Submission of network of balance activities upto
delivery alongwith resource allocation
VIII 10% (a) Completion of installation of machinery, equipment &
fittings with the associated system required for reaching pre
launch stage and submission of weight analysis for first ship of
the series only
(b) Launching of the vessel or equivalent stage of
construction reached
IX 5% Completion of 40% physical progress of construction and
submission of weight analysis for first ship of the series only
X 5% Completion of 60% physical progress of construction and
submission of weight analysis for first ship of the series only
XI 5% Completion of 85% physical progress of construction and
submission of weight analysis for first ship of the series only
XII 10% Completion of Basin trials
XIII 5% (a) Completion of inclining experiments and submission of
weight analysis for first ship of the series only and draft survey
for subsequent ships
(b) Successful completion of CST
(c) Completion of Training
XIV 5% (a) Successful completion of FMT
(b) Stowage of all Onboard Spares
(c) All documentation, drawings, manuals for the ship to be
made available to the concerned agencies as per specifications
(d) Completion of first reading of D-448 and acceptance
of vessel
XV 10% All defects/ deficiencies and Contractor‟s liabilities including
guarantee repairs/dry docking to be completed.

2.2.2 For Yard Craft, Auxiliaries. Seven stages payment with pre-requisites as
elaborated below:-

Stage % of Activity Pre-Requisites

Vessel‟s cost

57
I 10% On signing of the Contract (10% of Contract cost) On submission of bank guarantee of
equal value and Performance-cum-
Warranty Bond of 5% of the
Contractual cost. DPSUs may submit
indemnity bond, when nominated.
II 20 % (a) Proof of ordering of steel/Hull Construction To be certified by Owner‟s
Material rep/Overseer.
(b) Submission of cardinal date
programme/production PERT.
(c) Submission of drawing schedule
(d) Submission of main hull structural drawings.
(e) Order for all major pre-launch items finalised and
placed.
(f) Erection of 40 % hull.
(g) Submission of equipment schedule.
(h) Completion of main engines, Gear box girders &
seatings/machinery seatings as applicable to erection
of 40% hull.
III 10 % (a) Completion of main engines, gear box girders & To be certified by Owner‟s
seatings/machinery seatings as applicable to rep/Overseer.
erection of 70% hull.
(b) All access holes to be cut and preparation of main
seatings in machinery compartments.
(c)Manufacture/procurement of W/T doors and
hatches
(d) Pressure test of built in tanks.
(e) Submission of network of balance activities.
IV 10 % (a) Erection of 100 % main hull To be certified by Owner‟s
(b) Placement of order for major equipment & rep/Overseer.
system affecting conduct of basin trials
(c) Pressure test of built in tanks
(d) Submission of network of balance activities
V 15% (a) Completion of installation of machinery, To be certified by Owner‟s
equipment and fittings with the associated systems rep/Overseer
required for reaching pre launch stage.
(b) Launching of the vessel or equivalent stage of
construction reached
Note: If large amount of machinery is to be placed
after the launch of the vessel, this stage may be split
into two @ 10% or 7.5% each.
VI 30% (a) Completion of Basin Trials. To be certified by Owner‟s
(b) Completion of inclining experiment and draft rep/Overseer.
survey for subsequent crafts.
(c) Successful completion of Contractor‟s sea trials
(form part of vessel acceptance trials).
(d) Successful completion of final machinery trials.
(e) Stowage of all on-board spares.
(f) All documentation, drawings, manuals for the
ship to be made available to the concerned agencies
as per specifications.
(g) Completion of first reading of D-448 and
acceptance of the vessel.
VII 5% All defects, deficiencies and Contractor‟s liabilities
including guarantee repairs & dry docking to be
completed.

58
 Annexure II
(Refers to Article 1 and 6 of
Standard Contract Document)

To Contract No.

Dated:

TECHNICAL SPECIFICATION

All Technical parameters listed in terms of size, weight, performance, operating

environment, power, utility life storage shelf life etc, both in terms of essential and
desirable levels as applicable to the equipment.

(The Technical parameters of the equipment being Contracted also to be included)

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59
 Annexure III
(Refers to Article 10 and 33 of
Standard Contract Document)

To Contract No.

Dated :

STATEMENT OF WORK (SOW) AND DELIVERY SCHEDULE

1. General.

2. Abbreviations/Definitions.

3. Equipment, Materials And Services

The SELLER shall deliver the goods and perform services as following:

3.1 Deliverable Items and Schedule and Definition of composition of Lots/Batches:

3.1.1 To be as specified at Annexure I of the Contract

3.1.2 Delivery Schedule.

Ser No Equipment/Service Quantity Month Place of

(from effective Delivery
date)

3.2 Modifications to be incorporated in (Name of Equipment).

3.3 BUYER Furnished Data and Equipment.
4. Integrated Logistic Support (ILS).
4.1 The maintenance of the (Name of Equipment) shall be carried out at Field and
Base Level by BUYER‟s personnel after receiving Maintenance Documentation,
CBTs Training, Special Test Equipment (STE) and test set up and Spare Parts.
4.2 The ILS package will support the following maintenance tasks: (All tasks to be
listed)
4.2.1 Field
4.2.2 Base/Component Level.
4.3 Training & Documentation. (All details of trg to be incorporated)
4.3.1 Field Maintenance Training and Documentation.

60
 No Description No of pers. Duration Month Remarks
(from ED)

4.3.2 Base Maintenance Training and Documentation.

No Description No of Duration Month Remarks

Persons (from ED)

4.4. Special Test Equipment and Test Setup

4.4.1 For Field Maintenance Test Equipment.

4.4.2 For Base/Component Level Maintenance.

No Description No of Duration Month Remarks

Persons (from ED)

BUYER Furnished Test Equipment

No Description Qty Month (ARO) Remarks

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61
 Annexure IV
(Refers to Articles 3A and 3B of
Standard Contract Document)

ADVANCE PAYMENT BANK GUARANTEE

To

The ___________________
Ministry of _______________
Government of India
________________ (complete postal address of the beneficiary)

1. “Whereas President of India represented by the _____________Ministry of

__________ Government of India (hereinafter referred to as BUYER) have entered into a
Contract No.
__________ (No. of Contract), dated _________ (Date of Contract) with M/s
_____________ (Name of SELLER) (referred to as SELLER) and whereas according to the
said Contract the BUYER has undertaken to make an advance payment of Rs.
________________ being payment
of ___________% of the total value of Rs._____________________ of the said Contract,
against issuance of an advance guarantee by a bank.”

2. We _______________________________________________ (indicate the name of

the bank) do hereby undertake to pay the amounts due and payable under this guarantee
without any demur, merely on a demand from the BUYER intimating that the SELLER is in
breach of the Contractual obligations stipulated in the said Contract. Any such demand made
on the bank shall be conclusive as regards the amount due and payable by the Bank under this
guarantee. However, our total liability under this guarantee shall be restricted to an amount
not exceeding Rs._______________.

3. We undertake to pay to the BUYER any money so demanded notwithstanding any

dispute or disputes raised by the SELLER in any suit or proceedings pending before any
Court or Tribunal relating thereto our liability under this present being absolute and
unequivocal. The payment so made by us under this bond shall be valid discharge of our
liability for payment there under and the SELLER shall have no claim against us for making
such payment.

4. We, further agree that the guarantee herein contained shall remain in full force and
effect during the period that would be taken for the performance of the said Contract and that
it shall continue to be enforceable till all the dues of the BUYER under or by virtue of the
said Contract have been fully paid and its claims satisfied or discharged or till
___________________________ office / Department / Ministry of
_______________________ certifies that the terms and conditions of the said Contract have
been fully and properly carried out by the said SELLER and accordingly discharges this
guarantee.

5. We, further agree with the BUYER that the BUYER shall have the fullest liberty
without our consent and without affecting in any manner our obligations hereunder to vary
any of the terms and conditions of the said Contract or to extend time of performance by the

62
said SELLER from time to time or to postpone for any time or from time to time any of the
powers exercisable by the BUYER against the said SELLER and to forbear or enforce any of
the terms and conditions relating to the said Contract and we shall not be relieved from our
liability by reason of any such variation, Amendment issued vide MoD ID No. 4(50)/D(Acq)/08
dated 20.06.2016 or extension being granted to the said SELLER or for any forbearance, act or
omission on the part of the BUYER or indulgence by the BUYER to the said SELLER or by
any such matter or thing whatsoever which under law relating to sureties would, but for this
provision, have effect of so relieving us.

6. The amount of this guarantee will be progressively reduced by (percentage of

advance) _____________ of total value of each part shipment/services against the stage
payment released by the BUYER for that shipment/services made by the SELLER and
presentation to us of the payment documents.

7. This guarantee will not be discharged due to the change in the constitution of the bank
or the BUYER/SELLER.

8. We, undertake not to revoke this guarantee during the currency except with the
previous consent of the BUYER in writing.

9. Notwithstanding anything contained herein above:-

(a) Our liability under this Guarantee shall not exceed Rupees _____________ (in
words) _________________________________________________

(b) This Bank Guarantee shall remain valid until _________________

(hereinafter the expiry date of this guarantee) the Bank Guarantee will cease to be valid
after ____________ irrespective whether the Original Guarantee is returned to us or not.

(c) We are liable to pay guaranteed amount or any part thereof under this Bank
Guarantee only and only if you serve upon us a written demand or a claim in writing
on or before ______________(Expiry Date).

Dated the ________day of ________ (month and year)

Place :

Signed and delivered by ____________ (Name of the bank)

Through its authorised signatory

(Signature with seal)

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63
 Annexure IV (A)
(Refers to Articles 4A and 4B of
Standard Contract Document)

PERFORMANCE-CUM-WARRANTY BANK GUARANTEE

To

The ___________________
Ministry of _______________
Government of India
________________ (complete postal address of the beneficiary)

Dear Sir,

1. Whereas President of India represented by the _____________ Ministry of

____________, Government of India (hereinafter referred to as BUYER) have entered into a
Contract No. __________________________dated _______________ (hereinafter referred
to as the said Contract) with M/s. _______________________ (hereinafter referred to as the
SELLER) for supply of goods as per Contract to the said BUYER and whereas the SELLER
has undertaken to produce a bank guarantee amounting to Rs. ___________________ which
is 5% of the Total Contract Price to cover 5% of total Contract value each for Performance
and Warranty in sequence, to secure its obligations towards Performance-cum-Warranty to
the BUYERs.

2. We, the _______________ bank hereby expressly, irrevocably and unreservedly

undertake the guarantee as principal obligors on behalf the SELLER that, in the event that the
BUYER declares to us that the amount claimed is due by way of loss or damage caused to or
would be caused or suffered by the BUYER by reason of breach/failure to perform by the
said SELLER of any of the terms and conditions in the Contract related to Performance and
Warranty clauses, we will pay you, on demand and without demur, all and any sum up to (5%
of total Contract Value) _____________________________ Rupees only at any instance
under this Guarantee. Your written demand shall be conclusive evidence to us that such
repayment is due under the terms of the said Contract. We shall not be entitled to ask you to
establish your claim or claims under this guarantee but will pay the same forthwith without
any protest or demur. We undertake to effect payment upon receipt of such written demand.

3. We shall not be discharged or released from the undertaking and guarantee by any
arrangements, variations made between you and the SELLER, indulgence to the SELLER by
you, or by any alterations in the obligations of the SELLER or by any forbearance whether as
to payment, time performance or otherwise.

4. We further agree that any such demand made by the BUYER on the Bank shall be
conclusive, binding, absolute and unequivocal notwithstanding any difference or dispute or
controversy that may exist or arise between you and the SELLER or any other person.

5. In no case shall the amount of this guarantee be increased.

6. This Performance-cum-Warranty guarantee shall remain valid for a period until three
months beyond the warranty period as specified in the Contract i.e. upto __________.

64
7. Subject to the terms of this Bank Guarantee, the issuing bank hereby irrevocably
authorizes the beneficiary to draw the amount of upto Rs. _________ (5% of total Contract
value) for breach/failure to perform by the SELLER of any of the terms and conditions of the
Contract related to performance and warranty clause. Partial drawings and multiple drawings
under this Bank Guarantee are allowed within the above stated cumulative amount subject to
each such drawing not exceeding 5% of the total Contract value (Rs. _______ only) (Mention
BG amount).

8. This guarantee shall be continuing guarantee and shall not be discharged by any
change in the constitution of the Bank or in the constitution of M/s ____________. We
undertake not to revoke this guarantee during the currency except with previous consent of
BUYER in writing.

9. Notwithstanding anything contained herein above:

(a) Our liability under this Guarantee shall not exceed Rs. _________ (Rupees
___________ only (in words).

(b) This Bank Guarantee shall remain valid until 3 months from the date of expiry
of warranty period of the Contract, i.e upto ________ (mention the date) which is 3
months after expiry of the warranty period and the BG shall cease to be valid after
_______________ irrespective whether the Original Guarantee is returned to us or
not.

(c) We are liable to pay guaranteed amount or any part thereof under this Bank
Guarantee only and only if you serve upon us a written demand or a claim in writing
on or before ______________ (Expiry Date).

Dated the ____________ day of ___________ (month and year)

Place :

Signed and delivered by __________ (name of the bank)

Through its authorised signatory

(Signature with seal)

65
 Annexure IV (B)
(Refers to Articles 3D and 3E of
Standard Contract Document)

ADDITIONAL BANK GUARANTEE FOR

ESSENTIAL PARAMETER-B CASES

To

The ___________________,
Ministry ___________________,
Government of India,
________________ (complete postal address of the beneficiary)

1. Whereas President of India represented by the _____________Ministry of

______________, Government of India (hereinafter referred to as BUYER) have entered into
a Contract No _______________________ dated ___________________ hereinafter referred
to as the said Contract) with M/s _________________ (hereinafter referred to as SELLER)
for supply of goods as per Contract to the said BUYER and whereas the SELLER has
undertaken to produce a bank guarantee for (%) of total Contract value amounting to
Rs._________ to secure its obligations towards meeting the Essential Parameters B to the
BUYER.

2. We, the _________________ bank hereby expressly, irrevocable and unreservedly

undertake and the guarantee as principal obligors on behalf of the SELLER that, in the event
that the BUYER declares to us that the amount claimed is due by way of loss or damage
caused to or would be caused or suffered by the BUYER by reason of breach/failure to
perform by the said SELLER of any of the terms and conditions in the Contract related to
meeting the Essential Parameter B, we will pay you, on demand and without demur, all and
any sum up to a maximum of Rupees _______ only. Your written demand shall be conclusive
evidence to us that such repayment is due under the terms of the said Contract. We shall not
be entitled to ask you to establish your claim or claims under this guarantee but will pay the
same forthwith without any protest or demur. We undertake to effect payment upon receipt of
such written demand.

3. We shall not be discharged or release from the undertaking and guarantee by any
arrangements, variations made between you and the SELLER, indulgence to the SELLER by
you, or by any alternations in the obligations of the SELLER or by any forbearance whether
as to payment, time performance or otherwise.

4. We further agree that any such demand made by the BUYER on the Bank shall be
conclusive, binding, absolute and unequivocal notwithstanding any difference or dispute or
controversy that may exist or arise between you and the SELLER or any other person.

5. In no case shall the amount of this guarantee be increased.

6. This Guarantee shall remain valid until ____________ as specified in the Contract.

7. This guarantee shall be continuing guarantee and shall not be discharged by any
change in the constitution of the Bank or in the constitution of M/s ____________________.

66
We undertake not to revoke this guarantee during the currency except with previous consent
of BUYER in writing.

8. Notwithstanding anything contained herein above:-

(a) Our liability under this Guarantee shall not exceed Rupees _____________ (in
words) ___________________.

(b) This Bank Guarantee shall remain valid until __________________

(hereinafter the expiry date of this guarantee). The Bank Guarantee will cease to be
valid after ____________ irrespective whether the Original Guarantee is returned to
us or not.

(c) We are liable to pay guaranteed amount or any part thereof under this Bank
Guarantee only and only if you serve upon us a written demand or a claim in writing
on or before__________(Expiry Date).

Dated the _____________day of ______________ (month and year)

Place:

Signed and delivered by ____________ (Name of the Bank)

Through its authorized signatory

(Signature with seal)

****

67
 Annexure IV(C)
(Refers to Articles 4C and 4F of
Standard Contract Document)

INDEMNITY BOND FOR PERFORMANCE-CUM-WARRANTY

1. This deed made on this _____ day of ______ by M/s _____________, a company
registered under The Companies Act 2013 having its registered office at _____________ and
acting through its corporate office at _____________ hereinafter referred to as the
"SELLER").

2. Whereas MoD, New Delhi acting on behalf of the President of India (hereinafter referred
to as "BUYER") has placed a Contract No ___________ dated __________.

3. And whereas, the SELLER has agreed to execute this Indemnity Bond for performance-
cum-warranty on the terms and conditions appearing hereinafter.

4. It is hereby agreed and declared by the SELLER that:-

(a) The SELLER shall duly and faithfully perform its obligation under the said
contract and comply with the conditions in the said contract.

(b) The SELLER shall, in as much as with its control, refrain from such actions or
actions as may cause loss, injury, damage to the BUYER.

(c) In the event of breach/default by the SELLER in complying and in case the
breach/default is not remedied by the SELLER up to period of the notification of the
breach/default by the BUYER, the SELLER shall indemnify to the BUYER, to the
extent of {_________ (₹ _____________ only) being ______ % of the contract value
of {_________ (₹ _____________ only) of any direct losses or damages suffered by
the BUYER due to failure of the SELLER.

(d) The SELLER shall be fully discharged of its obligations under this bond on
meeting its liability as per Para c above which shall be restricted to the limit as
provided at Para c above.

(e) The SELLER shall not be liable for any breach/default arising out of force majeure
situation or due to any default, action, inaction or failure on the part of the BUYER.
The liability of the SELLER under this bond shall remain and in full force until the
fulfilment of the obligations of the SELLER under the said Contract.

(f) The SELLER hereby expressly, irrevocably, and unreservedly undertake and
guarantee that in the event that the beneficiary submits a written demand to SELLER
stating that they have not performed according to the warranty obligations for the
PRODUCTS as per said Contract, SELLER will pay BUYER on demand and without
demur any sum up to maximum amount of ____ % of the contract value. BUYER'S
written demand shall be conclusive evidence to SELLER that such repayment is due
under the terms of the said contract. SELLER undertakes to effect payment within
____days from receipt of such written demand.

68
 (g) The amount of warranty/guarantee shall not be increased beyond ___ %. Unless a
demand under this warranty/guarantee is received by SELLER in writing on or before
the expiry date (unless this warranty/ guarantee is extended by the SELLER) all rights
under this guarantee shall be forfeited and SELLER shall be discharged from the
liabilities hereunder. This warranty/guarantee is personal to the BUYER and not
assigned to a third party without prior written permission.

5. This Indemnity Bond for Performance-cum-Warranty guarantee shall be governed by

Indian Law.

For ---------------------
Signature: Signature :
Name: Name :
Witness

1.

2.

****

69
 Annexure V
(Refers to Article 9 of Standard
Contract Document)

To Contract No.

Dated :

MODIFICATIONS TO BE INCORPORATED
AS PER REQUIREMENTS OF THE
SERVICE HQ

(To be elaborated depending on the modification existing if any with the SELLER or
modifications required for suiting the BUYER‟s requirements)

****

70
 Annexure VI
(Refers to Article 14.3 of
Standard Contract Document)

CERTIFICATE OF CONFORMITY

Date:

No:

Product

Name:

Product

No: Lot No

: Quantity:

Contract

No:

Packaging List No:

THIS IS TO CERTIFY THAT THE ABOVE MENTIONED PRODUCT HAVE

SUCCESSFULLY PASSED ALL THE ACCEPTANCE TESTS IN ACCORDANCE WITH
THE RELEVANT SPECIFICATIONS AND DRAWINGS.

****

71
 Annexure VII
(Refers to Article 20.2 of
Standard Contract Document)

QUANTITY CLAIM

To the Contract No ………………………………………………………

Dated ………………………………………
CLAIM PROTOCOL NO ……………………..
Laid down
………………………………………………………………………………………….
For inter/tare storage
Commission, consisting of Chairman ………………………………………………… and
Members ……………………………………..………………………………………. having
examined the state of the delivered equipment ascertained as follows:-

1. The equipment was delivered by M/s……………………………………………

against Bill of Lading No …………………………….. of
………………………………….. in the quantity of one collie with the Marking
……… Case No…..………………………………………………..

2. The obtained equipment is delivered under Contract

No.…………………………………. Item Srl No ………… Cost …………………………

3. The state of packing and seals on goods packages, correspondence of the gross weight
and the weight indicated in the way bills (packing lists) Nos of the collies are to be pointed
out ………… Condition of the collie
………….………………………………………………….. Gross weight of the
collie……………….…………………………………….. Net weight of the
collie....……………………..

4. While unpacking the goods packages, the following discrepancy between the shipping
documents (packing lists as the packed equipment was discovered/separately for each
package
………………………………………………………………………………………………
……………………………………………………………………....………………………
………………………………………………………………………………………………

5. Conclusion of the commission …………………………………………………………...

……………………………………………………………………............................................
......……………………………………………………………………......................................
..........……………………………………………………………………..................................
6. The following documents confirming the justification of the complaint are attached to

72
the report (Packing list, photos of the damaged sports and others)
…………………………………………………………………………………………………
……………………………………………………......

Chairman ………………………..
Members …………………………
Place and date of issue ……………………………………………………….

****

73
 Annexure VIII
(Refers to Article 20.3 of
Standard Contract Document)

QUALITY CLAIM

To the Contract No ………………………………………………………

dated ……………………………………… CLAIM PROTOCOL NO ……………………..

Laid down on

Concerning (Name of the claimed equipment) Commission

Members …………………………..

Chairman ……………………………. ………………………………………..

………………………………………..

The Commission has acquainted with the claimed equipment and made the following
decision:-

1. ………………………………….. Serial No………………………………………

………………………………….
(equipment)

Production by the …………. Made by the manufacturer ………………..

…………………………………..
…………………………………………………… (date of manufacture)

No of running hours …..…….. With guarantee period of ………………….

(completed)
…………………………………………………..........
…………………………………………….…………..
(years, months)

From the beginning of operation, the product has been operating for ………. hours.

2. Indicate operation conditions of the equipment …………………………………......

………………………………………………………………………………………………
(State type of fuel and oil used during operation of the equipment)

3. Description of the defect ……………………………………………………………….

(the date and circumstances under which the defect was ascertained, short description of the
probable causes and probable consequences of the defect)

74
4. List of units (or their parts)
(defective equipment will remain in that organisation store-room when it has been operating
till arrival of the SELLER‟s instruction)

5. Conclusion of the Commission

…………………………………………….…………………………………………………
………………………………………………………………………………………………

(on investigation the commission decided that the claimed equipment is not serviceable and
that it must be subject to repair or must be replaced with a new equipment. The kind of repair
and place where the repair should be carried out are to be stated).

The following parts are required for the repair of the equipment (or its parts):-
…………………………………………………………………………………………………
….…………………………………………………………………………………………….
……….……………………………………………………………………………………….

The defect occurred …………………………… within the guarantee period from the reason
as follows
……………………………………………………..………………………………………
………………………………………………………………………………………………
…………. The costs of the repair of the equipment or its parts
……………………………….………………………………………………………………
…………………………………………………………………………………….…………
…………………………………………………………………………………………………

The defect occurred …………… within the guarantee period from the reason as follows …
…………………………………………………………………………………………………
….……………………………………………………………………………………………
………..…………………………….. The costs of the repair will be debited to
(……………... manufacturer/owner………………..)

To settle the claim, the SELLER has to replace the equipment and dispatch the unit and
other parts, indicate the parts and where the repair should be carried out (manufacturer‟s
side), the manner of reimbursement of costs connected with the repair of the equipment, etc.

Supplementary Data:

The equipment was handed over in accordance with the …………………………….

No…….…………………………………………………………on date)…………..…….......

The following documents are enclosed to this claim protocol to support the justification of
the claim(photos, samples, results of analysis, packing sheets, etc.) Signature of the
Commission Members
……………………………………………… ………………………………………………..
****

75
 Annexure IX
(Refers to Articles 11 and 37 of
Standard Contract Document)

PRICE BREAKDOWN OF SUPPLIES AND SERVICES

Sl. No Item Quantity Ready for Unit Total

Shipment Price Price
US$
1. EQPT as per 221 Nos. As per Note 2
Appendix A along below
with accessories given
at Note 1 below
( Il lustrative
example)

2. Cost of Additional As per Article As per Note

34.2 2(d) below
Accompanied
Accessories,

User Replaceable
Parts and
Expendables (As per
Appendix A)
3. Spares and As per Article As per Note
SMT/STE/TJ 34.3 and 34.4 2(d) below
(As per Appendix A)

4. Training as per the 4 and 24

syllabus given at working days
Appendix B for operator &
maintenance
personnel
respectively
(Illustrative
Example)

5. Technical Literature As per Article As per Note

given at Appendix C 34.6 2(d) below

TOTAL

76
Notes:

1. Description of Equipment. Equipment System and the following accessories:

Part No. Item Quantity

(a) 943013 Battery 02 Nos
(b) 943700 Manual in English 01
(c) 540006 Phillips Screwdriver #1 01

2. Delivery Schedule. Delivery Schedule (to be read in conjunction with Article 10

Delivery) to be completed as under:-

(a) First consignment of Nos. Equipment within

weeks from the effective date of the Contract (Article 2 refers) along with Contracted
ESP package viz spares, SMTs/STEs/TJs and technical literature.
(b) Second consignment of Nos EQPT within weeks from the
effective date of the Contract (Article 2 refers).
(c) Third consignment of EQPT within weeks from the
effective date of the Contract (Article 2 refers).

(d) Fourth and last consignment of _ EQPT , and Additional

Accompanied Accessories/User Replaceable Parts/Expendables, Spares, SMT/STE/TJ
and Technical Literature within weeks from the effective date of the
Contract (Article 2 refers) and 34 refers.

****

77
 Appendix A to Annexure IX
(Refers to Article 37 of Standard
Contract Document)

PRICE BREAKDOWN OF EQUIPMENT/ACCESSORIES,

MAIN EQUIPMENT ETC FOR EQPT

1. Main Equipment-Price Breakdown

Sl. No. Sl. No of Offer Description Unit Cost Qty Total Cost

2. Sub-Assemblies for Equipment

Sl Sl. No Part Nomenclature Schematic No. Unit Total Remarks

No of Offer No. ref. per cost in cost in
eqpt USD $ USD $

1. 1 220124 Sensor NO2 S1

2. 2 943253 Sensor Membrane

Total ---------
-
3. Accessories Along with the Equipment

Sl Sl. No Part Nomenclature Schematic No. Unit Total Remarks

No of Offer No. ref. per cost in cost in
eqpt USD $ USD $

1. 4 943013 Battery cartridges

Total

78
4. Optional Items

Sl Sl. No Part Nomenclature Schematic No. Unit Total Remarks

No of Offer No. ref. per cost in cost in
eqpt USD $ USD $

1. 16 943021 External 1
battery pack

Total

5. Spares

Sl Sl. No Part Nomenclature Schematic No. Unit Total Remarks

No of Offer No. ref. per cost in cost in
eqpt USD $ USD $

1. 12 943046 RS232 Cable 1

Total -----

6. Additional Items Required for Completeness of Spares and Consumables

Sl Sl. No Part Nomenclature Schematic No. Unit Total Remarks

No of Offer No. ref. per cost in cost in
eqpt USD $ USD $

1. 943018 Audio Ear Set 1 spare

Total

79
7.

Sl Sl. No Part Nomenclature No. Unit cost Total cost Remarks

No of Offer No. per in USD $ in USD $
eqpt

1. TJ 3000 Test Jig EVD Component

Level Checks
Manufacture
Supplied

Total

Note: The SELLER confirms for authenticity, completeness correctness of the data given
in this annexure.

80
 Annexure X
(Refers to Articles 5A and 5C of
Standard Contract Document)

LETTER OF CREDIT

Form of Doc Credit (40A) : Irrevocable/revolving/confirming.

Doc Credit Number (20) :

Expiry (31D) : Date : This date should match the Period of

Performance of the Contract.

Applicant bank (51) : ---------------------------------------------------------

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

Beneficiary (59) : -----------------------------------------------------

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

Amount (32B) : Currency:

Amount:

Max Credit Amount (39B) : Not Exceeding

Available with/By (41) : By payment.

Partial Shipments (43P) : Allowed/Not Allowed. Transhipment (43T)

: Not allowed/allowed.

Loading in Charge (44A) : (Port of Loading).

For Transport to (44B) : -----------------------------------------------------

(Port of Discharge).

Shipment Period (44D) : -----------------------------------------------------

Descript of Goods (45A) : -----------------------------------------------

Documents Required (46A) : + Signed commercial invoice in six copies.

+ One Ful l set of original clean on board bills of lading/ Airway Bill.
+ Packing list in six copies.
+ Certificate or origin issued by a chamber of commerce or self-certified by OEM.
+ Specimen Signatures of the SELLER‟s and the BUYER‟s Quality Assurance

81
Representative
+ Lot acceptance certificate signed by the SELLER‟s and the BUYER‟s quality assurance
representatives or alternatively the SELLER‟s quality assurance representative.
Additional Condition (46A) : + Telegraphic reimbursement is allowed.
+ This credit will automatically revolve cumulatively on an annual basis as indicated below
and will accordingly be automatically extended upon transmission of a notice to this effect
by means of an authenticated telex/swift message from the beneficiary‟s bank to the issuing
bank not later than 15 days prior to the expiry of the relevant validity period. [Note :
Applicable only if LC is revolving].

Stage Amount Validity Period

+ Maximum utilisation under the credit will be

[Note : Applicable only if LC is revolving].
+ Confirmation charges for the LC are for the beneficiaries account. [Note : Applicable only
when confirming LC is chosen]

+ UCP Article 32 does not apply. [Note: This pertains to sequential stage payments.
Mention of non-applicability of this provision will provide flexibility to BUYER during
execution without requirement of amendment to LC in case of change in sequence of stage
payments]

+Late Shipment is acceptable.

Details of Charges (71B) : All charges outside India are for beneficiary
account.

Presentation Period (48) : 21 days after shipment

Confirmation (49) : Confirm

Reimbursing Bank (53) : ---------------------------------------------------

Instructions

82
 (78) : + Documents must be forwarded to us by courier
in one lot.
+ We hereby engage that payments made under
and in compliance with all the terms and
conditions of this credit will be duly honoured by
us upon presentation of the stipulated documents.

+ Paying bank may claim reimbursement

telegraphically from the reimbursing bank for
value 3 days after their authenticated telex/swift
advice to the issuing bank of any conform
drawing presented under this credit.

Advise through (57) : ----------------------------------------------------------

Send to Recd Info (72) : -----------------------------------------------------------

****

83