Purchase-Manual NFL PDF

127
INDEX
Sr. No. Content Page No.

1. Extent Of Application 2-3
2. Budget Provision 3-4
3. General Principles of Purchase 4-5
4. Indents 5-16
5. List of Approved Supplier/ Vendors 17-20
6. Tender 20-33
7. Scrutiny of Tenders/Splitting of Orders 34-44
8. Tenders Committees 44-48

9. Types and General Participles of 48-52
Contract
10. Amendment to Purchase Order 52-54
11. Purchase for Which Financial 54-55
Concurrence not Required
12. Powers to approve /Place/ Sign 55-58

Purchase Order
13. Repeat order 58
14. Receipt of Stores / Inspections 58-60
15. Payment 60
16. Samples 60-61
17. Purchase of Imported Materials 61-64

18. Integrity Pact 64-65
19. Expression of Interest 65
20. Pre-bid discussions 65-66
21. General and Arbitration 66-69
22. Cancellation of Purchase/Contract and 69

Risk Purchase
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128
ANNEXURES
Annex. No. Content Page No.

I Purchase Indent 70
II Categories of Stores 71-73
III Notice Inviting Tenders Terms & 74-80
Conditions of NIT
IV Bank Guarantee Bond for 81-83
Security Deposit
V Purchase Order General Terms 84-89
& Conditions of Purchase Order
and Instruction to Suppliers
VI Purchase Order Amendment 90
VII Local Purchase Cum Receipt 91-92
Voucher
VIII Stores Receipt Voucher 93
IX Proforma for Indemnity Bond 94-95
X Bank Gurantee against Advance 96-97
Payment
XI Policy Guide Lines for 98-101
e-Procurement
A e-Procurement process- 102
Workflow
B e-Procurement workflow chart- 103-111
for tender Explanatory Notes to
the process
XII Security Deposit cum 112-114
Perforuence Bank Guarantee
XIII Bank Guarantee for Bid Security 115-116
Deposit/EMD/Form
XIV Performance Bank Guarantee 117-119
Format
XV Mobilization Advance 120-121
XVI Amendment -1 Dt. 10/12/08 to 122-123
the Purchase Manual (MSE)
XVII Finalization of specification of 124-126
equipments and spares
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1
National Fertilizers Limited

Corporate Office
PREAMBLE
National Fertilizers Limited is continuously striving for updating
and implementing an effective procurement system that offers a high
level of transparency, accountability and value for money.
Keeping in view above and the fact that over a period of time
there have been changes in Government policies, introduction of
MSMED Act-2006 and change of delegation of powers etc., Purchase
Manual in force since August 2008, required revision/updation. Besides
this, guidelines issued on procedures for procurement have under-
gone changes/amendments and required consolidation. Accordingly,
Purchase Manual has been reviewed and amended. Thus, the revised
Purchase Manual is a sincere attempt to meet the needs of chang-
ing procurement scenario. However, it is reiterated that the following
points are to be kept in mind while taking procurement decisions:-
a) The delegations of powers to various officers impose commensu-

rate responsibility and accountability.
b) In exercise of the delegated powers, the competent authority

(ies) must observe all the laid down procedures and instructions.
c) While deciding upon the award of contracts and/or placement

of orders on suppliers, there must be commercial prudence to
ensure that, firstly, the Company receives value for money and
secondly, there is fairness and equity in our dealings with the
contractors/suppliers.
d) It should be borne in mind that all transactions are and will con-
tinue to be subjected to close scrutiny and accordingly adequate
records are maintained to avoid problems at a later date.
e) For CVC/Govt. guidelines as and when issued from time to time,

Materials Department Corporate Office shall issue amendments
to various clauses of Purchase Manual with the approval of Com-
petent Authority.
The “Competent Authority” wherever mentioned in the guidelines

refers to the approving authority as per Delegation of Powers.
Sd/-
(D. S. Ahuja)
DIRECTOR (TECHNICAL)

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PURCHASE MANUAL
1.00 EXTENT OF APPLICATION
1.01: The procedures in the Purchase Manual shall apply to the
procurement of all types of items, i.e., Plant and Machinery,
spares, stores, consumable, catalysts, chemicals etc. The
procedures shall also cover the Service Contracts, which are
lined up through the Materials Department, such as Contract for
Appointment of Custom House Clearing Agents, Consolidation-
cum-Freight Forwarding Agents, Coal Handling (Supervision)
Agents; Contract for Transportation for Urea / CAN / Industrial
Products by road (if dealt by Matls. Dept.), Transportation
Contract for LPG, Railway Siding Maintenance Contract, Material
Handling Contract of unit stores for clearance of incoming
consignments by Rail/Road, Foreign Experts deputation to
NFL and erection/commissioning part of the Purchase Orders
covering supply, erection and commissioning. All contracts for
repairs (where material is required to be sent out side factory
premises) shall be awarded by respective user Departments.
Cases for Repairs of rotors and re-tubing of Heat Exchangers
having estimated value of repair up to Rs. 25 lakhs shall also
be awarded by respective user Departments. However, Cases
of Repairs of rotors and re-tubing of Heat Exchangers (where
estimated value of repair is more than Rs 25 lakhs) shall
be awarded by Materials Department. The outgoing as well
as incoming of materials under all contracts shall be routed
through Stores Section. All laid down procedure for dispatches
shall be followed.
All other contracts of services except those specifically covered
above will be governed by provisions of Works Manual.
1.02: As a policy, all the purchases will be done through Materials
Departments in the Units as well as at Corporate Office.
1.03: Procedures as per the Purchase Manual shall be followed for
purchase of Packaging Materials, i.e., HDPE/PP bags, Jute Bags
etc. for all the Units, which shall be finalized by the Materials
Department at Corporate Office. However, the units shall
operate the Purchase Orders. Any deviation in the procedures
shall require approval of the competent authority.
1.04: In cases where supplier(s) do not agree, Waiver of EMD/SD/
PBG/LD etc. for proprietary purchases may be approved by
Unit Head. For Non-Proprietary purchases, Unit Head may
approve waiver by appropriate loadings as per clause no.
7.04.

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For the orders which are to be approved by an authority higher

than Unit Head; waiver of EMD/SD/PBG/LD, etc. shall also be
approved by the authority who approves the Purchase Order.
1.05: Purchase Manual does not cover the contracts for supply of
Raw Materials, Feedstock and petroleum products, i.e., Coal,
HSD, MS, Lubricants, etc. These contracts/agreements shall be
finalized as per the mutually agreed terms and conditions with
the suppliers. Materials Department at Corporate Office shall
finalize these contracts. However contracts for natural gas shall
be finalized by Technical department of units/Corporate Office.
Loading at the source, transportation and co-ordination with
the Railways shall also be done by the Materials Department at
Corporate Office. For Lubricants, Petrol, Diesel and Petroleum
Products, the respective Units shall issue the Purchase Orders
and will arrange transportation. For Lubricants, Petrol, Diesel
and other Petroleum products the respective Units shall take
action for procurement as per guidelines issued by Corporate
Office from time to time.
1.06: The Materials Department of Corporate Office shall do the
purchases for the Marketing Department at Corporate Office.
However, purchases at Zonal and Area Offices shall be done by
the concerned offices as per the sub-delegated powers.
1.07: Financial powers under the Purchase Manual shall not exceed
the powers sub-delegated by C&MD to Functional Directors/
E.D./G.M. /D.G.M. /C.M. and further sub-delegated by them
to GM/ Dy.GM/ Chief Managers/ Senior Managers/ Managers/
Deputy Managers/AM/MO etc.
The powers delegated to various officers in this Manual shall
be governed by prevalent Sub-delegation of Powers. For items,
which are not specified in the Delegation of Powers, provisions
contained in the relevant rules/Purchase Manual shall be
followed. For items, which are specified in the Delegation of
Powers, the same shall prevail upon the powers defined in the
Purchase Manual.
2.00 BUDGET PROVISIONS

2.01: Provisioning of revenue budgets for regular stock items (RST),
bulk chemicals, (Petrol, Oil and Lubricants) POL, etc. for which
indenting is done through Stores shall be done by Materials
Department. Provisioning of relevant budgets for specific
spares (Revenue/Capital), shall be done by concerned user
departments. Once the budget has been approved, concerned
user departments can place indents within the approved

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budgetary limits and in accordance with the provisions

contained in this Purchase Manual. All the purchases shall be
subjected to the budget provision, which shall be monitored by
the respective Departments.
The Finance and Accounts Department shall examine budgetary
provision and expenditure for Capital items. All indents for capital
items shall be sent to the Finance & Accounts Department by
the Indentor to ensure availability of budget before such indents
are forwarded to Stores/Purchase Section for procurement.
Budget provisions should be available at the time of controlling
of Indent. In case budget is available at the time of indent
approval/controlling and placement of order and /or execution
of order is not in the same Financial Year; spilling of budgets to
next/subsequent Financial Years shall be got incorporated by
the concerned Department in the budget/revised budget.
3.00 GENERAL PRINCIPLES FOR PURCHASE

As a general principle, purchase of materials should be
restricted to the minimum requirement, so as to avoid over
stocking, and, at the same time, making sure that the stock is
readily/timely available for consumption.
3.01: The materials would broadly be classified into following types
of items:
Specific Items (ST): Items for specific works, plant and
machinery, equipment, etc. against the approved budget.
Regular Stock Items (RST): Items of normal requirement
of recurring nature for operation, maintenance and other
purposes. RST items shall be only those items, which are fast
moving general consumable items and / or are used by more
than one Department. The lists or RST items shall however be
reviewed regularly at Unit level (i.e. at least once in a year).
Insurance Stock Items (IST): Items for use as replacement
in the event of a possible breakdown. These items are normally
having high value & long delivery, are likely to be stocked as
single piece/unit in number, are not likely to be used during the
life cycle/time of the concerned equipment and are generally
proprietary in nature.
3.02: Provisioning of items under category ST shall be done by
the concerned user departments. Normally, the departments
should be able to assess the requirements of this category of
items and would include it in the Revenue/Capital Budget for
the year.

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3.03: The indents for capital items should invariably be given the
reference of the Capital Budget Item Number and the approved
budget for the item. Administrative approval of the Head of the
Unit should also be enclosed with the indent.
3.04: Provisioning of items under RST category, shall be done by the
Stores Section. Stores Section will monitor the stock position
and place indent on the Purchase Section in accordance with
the reordering levels. Stores Section will follow fixed period
review system for RST items. For Review of Stock Levels, the
Stores Section, if necessary, will consult the user department
and shall review, from time to time, the levels on the basis of
the past consumption, trends in consumption and the future
projections.
3.04.1: Regarding raw materials, feed stocks and bulk
chemicals, etc., Production Department will give the projected
requirement for the year to Stores Section and confirm the
requirement on quarterly basis during the year. Similarly, user
departments shall submit the yearly requirement of POL items
i.e., oils, lubricants, etc.
3.05: Provisions of items, falling under IST category, will be done by
the concerned user departments on the same lines as for ST
items, indicating the following:
i) The equipment/system for which the item is required.
ii) The quantity to be kept as insurance stock.
4.00 INDENTS:
With the implementation of Inventory Management System
(IMS), on line processing of Indents has been started. Where
ever applicable indenting shall be done through IMS as per
the system already developed/implemented or amended in
future. Under this system the details of stock position, past
consumption, pending indents, codification etc. are available
on line and individual indents are not to be sent to Stores
section for these details. However, for approval of New codes
electronic routing through Stores section shall be done as per
the requirements of the IMS System. Process of purchase
shall, be initiated by Purchase section on receipt of electronic
indents by them and where ever feasible Enquiries shall be
issued by Purchase section after taking a print out of indents
received electronically through IMS. It shall, however, be the
responsibility of the Indentor to make available the hard copy
of indent (duly signed by Approving Authority of the indent) to
the Purchase section within one week from the date of electronic

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approval of the indent. Where detailed specifications, drawings

and other documents forming part of indent are not received
electronically through IMS, Enquiries shall not be issued unless
these details/documents are physically received in Purchase
section along with the Hard copy of indent duly signed by
Approving Authority of the indent. It shall be the responsibility
of the Indentor to ensure that these documents are sent to
Purchase section immediately after the date of electronic
approval of the indent. It shall be ensured by the Indentor that
all specifications and other columns of electronic indents are
correctly filled through IMS and that there is no change in any
specification/notes/column/data etc. in the signed Hard copy
of Indent to be subsequently sent to Purchase section, so that
the Enquiry earlier issued based on electronic Indent does not
become redundant on receipt of signed hard copy of indent
and/or no addendum/corrigendum to Enquiries is required to be
issued to avoid extra expenditure as well as delay in placement
of orders. No case shall be processed for Finance concurrence
and/or for approval for placement of Purchase order/contract,
unless the hard copy of indent (duly signed by Approving
Authority of the indent) is placed in the file of Purchase section.
4.01: The indents would be raised in the prescribed proforma
(annexure-I).
The indent should specifically indicate whether the indent is
for ‘Regular Stock Items (RST)”, “Specific Items” (ST) or for
“Insurance Items”(IST).
4.01.1: Indents for capital items should be raised only after
prior concurrence from the Finance Department and approval
for the General Manager/Executive Director at Unit Level and
concerned GM/ED/Director at Corporate Office.
4.01.2: For Stock Items - The indents for purchase of
materials which have been declared as “Stock Items” will be
raised by Stores Section after the quantity in stock has reached
the “Re-Order Level” as determined for the respective items.
Such indents/requisitions, amongst other particulars, shall also
indicate:
i) Re-Order quantity
ii) Stock in hand
iii) Pending Purchase Order reference and quantity
iv) Consumption statistics
v) Safety Stock etc.

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4.01.3: For Other Items - The respective departments will

raise all requisitions/indents for purchase of materials/works
and services. The requirements should not be intentionally
bifurcated/split so as to avoid approval from higher authorities.
One time purchase for projects or capital equipments/spares
should be properly justified. Further, the obsolescence factor
should also be taken into account, i.e., the equipment to be
purchased should conform to the latest specifications and
technology available in the market. The departmental head will
ensure that the purchase requisitions must indicate:
a) Budget Provision
b) Estimated value of the requisition.
4.02: The indents will be prepared in four copies which will be
distributed as under:
a) The original copy: For Purchase Section;
b) Two copies: For Stores Section (one for the individual
go-down and the other for the master file for control
purpose).
c) One copy: For User Department.
(b) And (c) - Not required if the indent has been raised through
IMS.
4.03: While filling the indent form, attention should be paid to the
following:
4.03(i): The indents must be clearly marked for the class
of items i.e. ‘RST’, ‘ST’ or ‘IST’ or Capital and signed by the
competent authority.
4.03(ii): All the columns of the indent must be filled in.
4.03(iii): It should be ensured that the requisition for purchase
should be Complete in all respects with regard to:
• Standard Nomenclature & description of the items / material
/ equipment / scope of work should be used. The terminology
should be such as to show beyond doubt as to what exactly
is required to be purchased. Detailed specifications, full
particulars, drawings/sketches (if necessary), should be
attached. Ten copies of such annexure to the indent should
be attached and additional copies, as and when required,
should be furnished by the Indentor.
• Standard codes such as IS, BS, DIN, ASTM, API etc.,
wherever applicable, should be adopted.

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• Temperature/pressure/standard, if any, where applicable.

• Quantity and Unit of Measurement.
• When delivery of materials/services is required. Definite
required delivery date / period should be mentioned in the
indent. For controlled items, if any, the Government Policy
should be borne in mind by the indenting officers while
raising the indents for such items.
• Name(s) of vendor(s)/contractor(s) in case the item is of
proprietary nature.
• Estimated value and budget head.
• Whether Pre-Dispatch Inspection (PDI) is required?
• Third Party Inspection (TPI), if required with scope and
agency.
• Performance Bank Guarantee (PBG) required or not. If
required, the amount (percentage) and period of guarantee
must be recorded. Three months claim period shall be added
beyond the required validity of all Bank Guarantees.
• Last Indent/PO Reference. Previous Purchase Order
reference, if item has been purchased earlier, should
invariably be given in the indents.
• Likely consumption period.
• Present Stock Position and pending indents references
4.03(iv): Separate indents should be prepared for each
category of item (Categories are listed in Annexure II).
4.03(v): Normally, suppliers will be asked to dispatch materials
by approved Road Transporters.
For Truck Loads: - Chartered Trucks on Door Delivery basis.
For Smalls by Road up to Transporter’s Godown at destination/
door delivery by Cargo Movers.
For Foreign Orders: Ordinary ocean freights. If air freight
is required, special approval of the approving authority is
required as per clause no. 10.08.
Small packages: By Registered Post Parcel/Courier (cargo
Movers)
4.03(vi): Placing indents for items of specific makes, on
the grounds of suitability and past performance, should, as
far as possible, be avoided, as this does not permit enquiries
/ competition of a wide nature. Complete specification, to

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which the item should conform to, should be given. If such

specifications cannot be given in certain cases, then the specific
make and model can be mentioned to permit the suppliers to
quote for suitable equivalents. However, full justification may
also be furnished. The above, however, does not apply to those
cases where a particular plant or machinery is patented or is
proprietary under a particular name or spare parts are needed
for such plant and machinery.
4.03(vii): Proprietary - The proprietary items of any
manufacturers mean equipment/ machinery or its components
(including spares) having unique features / specifications
/ attributes / characteristics patented, under registered
trademark or brand name or tailor made for a specific
application and cannot be substituted.
Indents for proprietary items shall be approved by the
Competent Authority as per DOP
Note: A certificate to the effect that the “item is of proprietary
nature and has to be purchased from the manufacturer as this
is the only manufacturer of the required equipment machinery”
shall be recorded on the indent by the Indentor. Enquiry in such
cases is to be issued to (Original Equipment Manufacturers)
OEMs. Enquiry may also be issued to Indian agents (in case of
FOREIGN OEMs)/ Authorized dealers (in case of Indian OEMs)
only where proper valid authorization from OEM in favour of
Indian agent/Authorized dealer is available on record. Copy
of such authorization should invariably be placed in the
individual file. In absence of valid authorization letter from
OEM appointing their Indian agent /authorized dealer, enquiry
should be issued to OEMs only. In case there is no response
/poor response from OEMs and details of authorized Indian
agent /Authorized dealer are not available, enquiries may be
issued to known/likely Indian agent/Authorized dealer subject
to following conditions:-
a): That a suitable clause is incorporated in NIT asking the
Tenderer to submit valid authorization of OEM in his favour
and that in absence of such authorization, their offer will
not be considered.
b): Normally offers of Indian/Authorized Agents without
proper authorization of OEMs should not be considered
for placement of orders. Either the Indian agent on behalf
of the foreign OEM or the foreign OEM directly can bid in
a tender but not both. Further, in cases where an Indian
agent participates in a tender on behalf of one of the

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manufacturer, he should not be allowed to quote on behalf

of another manufacturer along with the first manufacturer
in a subsequent/parallel tender for the same item. Rates
reasonability has to be properly examined/ascertained
and certified in case of proprietary purchases. In case
the prices are considered unreasonable and holding of
negotiations is found necessary, a Tender Committee
may be constituted to negotiate prices and to ascertain &
certify rate reasonability.
4.03(viii): Single Tender (Nomination basis) Enquiry
(Other than Proprietary) - The cases where the enquiry is
restricted to only one source, though many sources/ suppliers
exist, such procurement is on nomination basis. Such Single
Tender Enquiries should be issued as an exception only and
processed, after recording reasons. The indenter should take
approval of Unit Head in all cases and approval of Competent
Authority shall be obtained as per D.O.P. before processing the
case for procurement.
However, in case of procurement on single select make/brand
(Nomination basis); NIT may also be issued to known dealers
of that manufacturer.
4.03(ix):
a) The details of purchase orders having value of Rs. 5 lakhs
and above should be hosted on NFL website to enhance
vendor base.
b) The instructions to be included on the website should be
that, “Whoever is interested to be a registered supplier
of these items, should fill up the vendor registration
form, uploaded on the website. The normal registration
process shall, thereafter be followed by the plants/ units
for registering the eligible suppliers.”
4.03(x): Standardization - Standardization is of product,
whereas pre-qualification is of vendor. Standardization can
be for more than one make of comparable quality out of
many makes available. Standardized items of pre-qualified
manufacturers / vendors mean equipment / machinery or its
component (including spares) and any regular consumption
items having such features / specifications / attributes /
characteristics, which are substitutable or interchangeable with
each other. In case any item is required to be standardized,
the indenting department will initiate a proposal, justifying the
need for standardization. The proposal should be examined by
the Committee, constituted by the GM/ED/D(T)/C&MD, under

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the Chairmanship of DGM/GM/ED/ D(T) and consisting of

representatives of the User, Materials and Finance Department.
On recommendations of the Committee, all items valuing up to
Rs. 100 lakhs in a year shall be purchased with the approval of
Unit Head. Purchases beyond Rs. 100 lakhs but up to Rs. 200
Lakhs (FOR EACH UNIT) be done with the approval of D (T)
and purchases more than Rs. 200 Lakhs (FOR EACH UNIT) be
done with the approval of C&MD. The items so standardized,
shall be reviewed and updated after every two years. Such
standardized items should be purchased only after inviting
the offers directly from the manufacturer or their authorized
resellers, as the case may be. Purchases shall be made with
the financial concurrence (as per clause no. 11 of Purchase
Manual) and with the approval of Competent Authority as
per the delegation of powers. Standardized items shall be
processed on limited tender basis by Materials Department.
However, number of vendors shall be as on standardized list.
In such case, if only one offer is received, it shall be processed
as single tender. Powers for purchase of standardized items
would be as per Clause 12.01.
Variation in value of individual item within the same group,
say Electrical items may be permitted within the total value of
standardized items for that group by Unit Head. Variation in
total value of each group up to 20% is allowed to be approved
by Unit Head. Thereafter, it shall require approval of next
higher authority. However, in all cases as given above, such
enhancement should not be in excess of overall DOP.
4.03(xi): Import Substitution - Import substituted items
of pre-qualified manufacturers mean equipment machinery of
its component (including spares) manufactured indigenously
with such features / specifications / attributes / characteristics
which can substitute the original equipment / machinery /
or component (including spares) of imported origin without
affecting the intended operation. The cost and quality
of replacement will be the main consideration in import
substitution.
The imported equipments / machinery or its component
(including spares) shall be divided into three categories,
namely: -
i. Non - critical
ii. Sub - critical
iii. Critical

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The categorization criteria of the criticality will be governed

by the application of item in the smooth and safe running
of the plant /equipment system and shall be decided by the
concerned Unit Head after taking comments/opinion of all
Sister Units (Comments/opinion of Sister Units shall also be
obtained on likely/recommended Indian vendors for Import
Substitution), where the same item is also being used for
same/similar application. Sister Units should give their
comments on such matters in a time bound schedule i.e.
within a maximum period of 10 days after receipt of request
from other units. In case of difference in opinion in Units,
approval of Director (Technical) shall be taken. Non- critical
/ sub-critical spares of plant & machinery of imported origin
can be considered for substitution. The cost of imported item
vis-à-vis the quality, the cost of indigenously manufactured
substitute and the frequency of requirement shall be the
main criterion for considering such substitution. Indenting
Department will take initiative for developing vendors who
can supply such non-critical / sub-critical spares, which will
meet the requirement of the Plant in respect of imported
machines and their spares. The item, of import substitution,
should be procured initially on trial order basis and after
verifying the satisfactory performance of the item, the same
can be procured on regular basis.
Trial order up to Rs. 20 Lakhs can be approved by Unit Head.
Trial orders for value more than Rs. 20 lakhs and up to Rs. 50
lakhs will require approval of Director (Technical) and above
Rs. 50 lakhs of C&MD. Once the trial has been completed and
satisfactory performance is established, the said item would
be treated as an Import Substituted item. Such items shall be
procured on single tender basis as long as only one vendor
is available for import substituted items and not treated as
proprietary. However, OEM (Original Equipment Manufacturer)
should invariably be contacted along with such vendors. The
list of such import-substituted items at one unit would be
circulated to the other units by Materials Department. The
process of import / Vendor substitution shall be a continuous
one so that more suppliers could be developed for the same
items. All critical spares would normally be purchased from
OEM. However, in the event proven equipment / machinery
or components (including spares) of required quality and
cost effective is sourced indigenously, the substitution can be
considered by following the same procedure as that for non-
critical / sub-critical item with the exception that such import
substitution will be approved by C&MD.

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A list of import / vendor substituted items purchased, should

be submitted by the Chief Manager (Matls) / DGM (Matls)
to Unit Head [D (T) / C&MD in case of Corp. Office], every
quarter by the 10th of following month and a copy endorsed
to C.M./DGM (F&A) of the Unit & C.M./DGM/GM (Materials) of
Corporate Office.
The Para of Import substitution should apply to Spares only and
not to regular consumption items such as Gaskets, O Rings,
Cables, Batteries, Fasteners etc. which are readily available
indigenously. Indigenous Repairs of imported Items shall not
be treated as Import Substitution.
4.04: An indent will, normally, be effective for procurement only
from the date it is found complete by the Purchase Section in
respect to details at (i) to (ix) of above clause.
4.05: Ordinary Indents
All indents should be raised keeping in view the lead time for
procurement in the normal course. The normal lead time (from
the date of Indent complete in all aspects to date of placement
of LOI/PO) shall be as under:
TIME LINES:
Type of (i) Indigenous (i) Imported Items

Indent (Items having
estimated value (ii) Indigenous(Items having
of less than one estimated value of one crore and
crore) above)
Normal 3 months 4 months
4.06: Emergent Indents:

4.06.1: Emergent indents should be raised only in exceptional
cases for sudden and unforeseen requirements. The reasons,
necessitating the emergent purchase, shall invariably be
recorded on the indent. If an ordinary indent is pending for
purchase, the reference of the same should be given in the
emergent indent.
4.06.2: The concerned Head of Department should sign
all the emergent indents. In the event of his absence from
Headquarters, the next higher officer should sign the indents,
if such indents cannot wait till his return to the headquarters.
4.06.3: In all cases of emergency purchase, the DGM/CM/Sr.
Mgr./ Mgr. of Materials Department will decide the mode of
transport, i.e. by road transport, passenger train or special
courier.

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4.06.4:
a. Item against emergent indent, which are available
off the shelf, must be made available at the earliest,
normally within 15 days from the date of indent.
b. For the items, which are not available off the shelf and
enquiries are required to be issued, the enquiries must
be sent by the fastest means, i.e. FAX, e-Mail or through
courier, for submitting the offers within 7 to 10 days or as
decided by the Indenting Officer. It should be specifically
mentioned in the enquiry that material is required on ex-
stock basis (off the shelf) or within the minimum delivery
period. Orders must be released at the earliest possible
time preferably within a week’s time after receiving
quotation.
4.06.5:
a. Emergent purchases shall be resorted to against Emergent
Indents with due approval of competent authority.
Such procurements can be done through Fax and/or
telephonic Quotations, hand collection of offer(s) by
officials of Materials Department (rep. of Indentor may
be associated on need basis), through a Committee
as per (4.06.6 below), Fax/Email enquires giving 7-10
days’ time to submit sealed offers and indicating earliest
delivery requirement.
b. Emergent Indents valuing more than Rs. 50,000: For
such indents Fax/Email enquires giving 7-10 days’
time and indicating earliest delivery requirement may
be issued. The vendors may be asked to submit sealed
offers. In addition the vendors may be informed on
telephone also of such requirements to enable them to
submit their offers. Such emergent enquiries may also
be displayed on company’s website also on priority to
enable the Vendors to assess the same and submit
their offers in time. The processing of such case for
both (a) & (b) above (where sealed offers have been
invited giving 7-10 days’ time and shortest delivery
requirement has been asked) shall be done as per
normal procedure and such purchases shall not be
regarded as emergent purchases and cases shall
be processed on Lowest/ Other than Lowest/ Single
Tender basis etc, as the case may be. Such purchases
shall not be covered under the annual financial limits
of emergent purchases.

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4.06.6: Other Emergent Purchases/purchase of special items

shall be resorted to through a Committee with due approval of
the Head of the Unit. The composition of the Committees for
such purchases comprise of Representatives from Materials,
F&A and User Departments. The Committees for such purchases
shall be constituted as under:
i) Purchase of Over Rs. 10 Lakh
Materials Department - Chief Manager
F&A Department - Sr. Mgr/Mgr
User Department - Sr. Mgr/Mgr
ii) Purchases above Rs. 5 Lakh but upto Rs. 10 Lakh

Materials Department - Sr. Mgr/Mgr
F&A Department - Dy.Mgr/ Sr.A.M
User Department - Dy.Mgr/ Sr.A.M
iii) Purchases above Rs. 2 Lakh but upto Rs. 5 Lakh

Materials Department - Dy.Mgr/Sr.AM
F&A Department - Asst. Mgr
User Department - Asst. Mgr
iv) Purchases below Rs. 2 Lakh

Materials Department - Asst. Mgr/M.O.
F&A Department - Accounts Officer
User Department - Engineer or equivalent
However, a report on emergent purchases and status of
consumption shall be submitted by Head of the Materials
Department to Unit Head & D(T) in case of Corporate Office,
copy endorsed to Head of the F&A Department and forwarded
to D(T) every quarter by 10th of the following month.
This report shall indicate the indent reference, indenting
department, date of purchase, period of consumption
envisaged, actual date of consumption/issue of stores,
reasons if item not utilized.
4.07: In the indent, the indenter will ensure, depending upon
the nature of the item indented, incorporation of special
requirement of inspection/ quality assurance plan/ special
packing instructions, if any.
4.08: In case some of the items in the Indent are matching/
complementary parts of an equipment/ assembly and are
required to be supplied by one supplier only, the Indenter shall
specify this in the Indent.

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4.09: Estimated Value: It will be the prime responsibility of the

indenter to prepare judicious estimate of the current value of
the Indent.
Following shall be the guidelines for the preparation of
estimates:
a) For frequently purchased items (i.e., items purchased at
least twice during last three years), the estimate shall
be based on the last purchase price obtained through
normal tendering and competitive bids with adjustment
for variations in the prices of raw materials, wages and
other inputs including current market conditions based
on relevant RBI indices or any other indices, wherever
appropriate.
b) For infrequently purchased items (i.e. items not
purchased twice during last three years)/ new items,
scientific/ technical estimate shall be prepared taking
into consideration the cost of raw material, casting/
matching, treatment/ testing, labour, overhead
expenses, transportation and applicable statutory
duties and levies etc. In case, cost of making pattern/
engineering drawing/ development of the items are also
included in the estimate, all care should be taken to
exclude this portion of cost in future while re-indenting/
re-ordering. If required, for guidelines, budgetary
quotations may be obtained for infrequently purchased
items preferably from registered vendors/ last supplier;
for new items (s) or new technology efforts should be
made by the indenter to get more than one budgetary
quotation.
c) For procurement of proprietary items, Last Procurement
Price, if available in the last 2 years, should be considered
as estimate. Adjustment for variations in the prices of
raw materials, wages and other inputs including current
market conditions may be done based on relevant
RBI indices or other indices wherever appropriate. In
cases where LPP is not available, the supplier’s price-
list/ rates along with the applicable discounts shall be
obtained for preparing estimates. Such list should be
directly obtained from the manufacturer only and the
list supplied by dealers/ authorized agents should not
be considered unless directed by the manufacturers.

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5.00 LIST OF APPROVED SUPPLIERS/VENDORS:

Materials Department will maintain a list of approved suppliers
of known, reputed and proven standing, both for indigenous and
imported items. The approved list of one Unit shall be circulated to
all the other units and Corporate Office also. The list of approved
suppliers shall be reviewed by the Committee once in three years.
If, due to any specific reasons, the list has not been reviewed
within a period of three years, approval of General Manager/ED
shall be obtained to revalidate the same. However, this validation
shall not be used for more than one year at a time.
For new item/items where no pre-qualification list is available,
a list to be drawn in consultation with Indentor and with
the approval of Unit Head. The names of the suggested
manufacturers/ suppliers/ traders/ contractors, as the case may
be, may be indicated by the indenter in the indent on the basis
of past experience of parties along with references, if any.
Necessary action for identification of MSME parties in the
Vendors list and in all cases at the time award of job shall be
done. Based on parties so identified, these parties will masked
as MSME parties in the Vendors Master in the Computer
System. The purchase order issued to such parties shall also
prominently indicate the status of such parties.
In addition compliance of Public Procurement Policy for Micro
and Small Enterprises (MSEs) vide Gazette Notification No. 503
dated 26.03.2012 effective from 1st April, 2012 notified as per
MSMED Act 2006, shall be ensured”. (Annexure-XVI).
5.01: Delisting and Blacklisting of Suppliers/Vendors:
a) Delisting (Limited Period) of Suppliers:
In case, a supplier repeatedly fails to perform, causes abnormal
delays, supplies sub-standard material, fails to rectify / settle
discrepancies in the supplies within a reasonable time, the
particular supplier should be delisted from the approved list
of suppliers for a limited period of one to two years. Delisting
should be done on the basis of recommendations of the
Indentor / DGM(Materials) / Chief Mgr (Matls) concurred by
Finance Department and approved by Unit Head. Such action
against the supplier will be communicated, along with the brief
of the case, to DGM (Matls.)/CM(Matls.) of all the other Units.
The other Units will also follow this decision.
In case, the party is delisted for non-execution of order, the
same shall be cancelled. However, such a supplier shall be

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allowed to execute other existing order(s) which was/were

issued prior to delisting. In case there are running cases, where
offer of such vendors are under consideration, the same shall
not be considered. In case of review of Vendor lists, delisted
parties shall not be removed from the lists on the grounds
that they have been delisted earlier; but clear remarks about
a particular party being delisted shall be given in the vendor
lists. Also the date when such delistment shall be over shall
also be given / recorded in vendor lists.
(b) 2nd time Delistment of Suppliers:
In case a delisted party again fails to perform and is required
to be again delisted with in a period of two years from the date
of revocation of delistment, such party shall be delisted for a
minimum period of 5 years. Such party shall not qualify for
enlistment again unless approval of next higher authority (to the
authority who approves 2nd time delistment) is obtained after
recording valid reasons for again enlisting such party who should
also meet the eligibility criteria prevalent at that point of time.
The party delisted 2nd time shall not be retained on the vendor
list. Separate records of such parties shall be maintained along
with the Black listed parties.
(c) Black Listing of Suppliers:
In case, a supplier is found guilty of bribery, corruption,
dishonesty, mal-practice, submission of forged documents,
misrepresentation, spurious supplies, fails to refund the amount
due to the Company, fails to return the material issued for
reprocessing/manufacturing, such supplier will be blacklisted
for a minimum period of 5 years. This shall be on the basis
of recommendations of the Indentor/DGM (Matls)/CM (Matls),
concurrence of the Finance Department and approval of Unit
Head [D (T) / C&MD in case of Corp. Office]. Action taken against
such a supplier shall be intimated to all the Units who will also
follow the decision to blacklist the supplier in their respective
Units. Vigilance Department and Materials Department of
Corporate Office shall also be informed about this action (through
endorsement of a copy of decision to CO), along with the brief
of the case, for informing the other agencies, as required.
Revocation of black-listment shall be with the concurrence of
F&A Department and with the approval of next higher authority
(to the authority who approved black-listing).
However, C&MD can approve revocation for the delistment/
black-listment done with his/her approval.

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No fresh contract will be awarded to black listed party during

period of blacklisting even though the case may be at advanced
stage for placement of Contract/PO at the time of blacklisting.
However, other contracts under execution may be reviewed
by Committee chaired by Unit Head with GM (O&M), HOD’s
of Indenting, Materials and F&A Departments, w.r.t. criticality
of Contract for plant operation or Project schedule, and
justifications may be recorded by Committee in case contracts
under execution are to be continued.
After the delistment/blacklisting period is over, the party should
apply afresh for enlistment with proof of their ‘Technical and
Financial’ capabilities existing at that time and request of party
for re-listment will be considered provided that party meets
the eligibility criteria prevalent at that point of time. This may
also be incorporated while issue of letter to the party intimating
their delistment/blacklisting.
(d) The concerned Supplier shall be informed about the action
taken regarding Delisting, 2nd time Delisting, Black Listing and
also for revocation of such action by NFL.
(e) List of Delisted and Blacklisted parties shall also be
displayed on Company’s web-site by M S Department of
Corporate Office.
5.01.1: The list of suppliers, for approval, shall be reviewed
and finalized by a Committee consisting of the following
members:
a) Chief Mgr. (Matls)/DGM (Matls)
b) Chief Mgr. (F&A)/DGM (F&A) or his representative
c) Chief Manager of concerned Technical Department or his
representative.
Requests, received from the suppliers from time to time for
enlistment, will be kept pending by the Materials Department
for consideration at appropriate time. All such requests shall
be considered by the Committee once in a year. However,
these requests can be considered earlier also if the situation so
warrants but with the approval of GM/ED/D (T).
5.02: Pre-qualification of suppliers can be invited through press
advertisements for various classes of items normally required
by the company. Approximate value/yearly quantity for
consumption and eligibility criteria may/should be mentioned
in the advertisement/NFL web-site so that competent parties
can be identified for enlistment.

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5.03: Before enlisting a new supplier, the Materials Department shall

carry out evaluation with regard to the Technical and Financial
capabilities of the supplier. The prospective suppliers may be
asked to furnish the details, such as:
i) Location of Plants
ii) Facilities available, type of machinery installed and capacity
iii) List of items and range of manufacture with specifications
iv) List of customers and past orders executed.
v) Inspection and testing facility for quality control.
vi) Name of their Bankers.
vii) Copy of latest balance sheet, if available.
viii) If a Partnership Firm, copy of Partnership Deed.
ix) If a trading firm, types of goods handled by them.
x) Sales Tax No./GST No.
xi) Tax Identification No. (TIN)
xii) Self certification that they have not been blacklisted by
any government department/public sector undertaking/
co-operative Unit.
5.04: Materials Department may regularly carry out market survey
for development of new sources of supply in the area where
there is lack of adequate competition.
5.05: The eligibility criteria should neither be made very stringent
nor very lax to restrict/ facilitate entry of bidders. It should be
ensured that the eligibility criteria are exhaustive yet specific.
It should also be ensured that the criteria are clearly stipulated
in unambiguous terms.
5.06: Wherever necessary, the party’s premises should be visited and
report placed on record regarding the capability and capacity
of the firm. In this connection, the Technical Departments may
be associated. Regarding financial capability of the suppliers,
information can be obtained from the Bankers through
confidential enquiry.
5.07: Wherever possible, before placement of bulk order, a trial order
may be placed and performance evaluated.
6.00 TENDERS:
6.01: Classes of Tenders:
6.01.1: Open Tenders: Open Tender should be advertised in
the leading Newspapers as under:

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Hindi National Daily - 1 No.

English National Daily - 1 No.
Regional Language - 1 No. (Optional)
Indian Trade Journal
Note: a) In addition to the advertisement in the Newspapers

etc. the Tender Notices may be posted to the
suppliers/manufacturers on the approved list.
b) All such tender will also be displayed on Company’s
Website.
6.01.2: Limited Tenders - Direct invitation/enquiry to all or

limited numbers of suppliers/manufacturers on the approved
list.
Note: NITs having estimated value of more than Rs. 1 Lakh
will be displayed on Company’s Website also.
6.01.3: Single Tender - The placement of PO shall be

approved as per D.O.P.
(A)- The following is covered under the “Single Tender”
i) Open or Limited tender invited but only one
technically acceptable quotation received and the
order placed with or without negotiation
ii) Placing an order for one selected make/brand.
[However, in case of procurement on single select make/brand
basis, the NIT may also be issued to the known dealers of that
particular make/brand].
(B)- The following will not constitute a single tender:
i) Placing an order with a Government Agency or against
DGS&D rate contracts or at Govt. controlled rates.
ii) Order placed with manufacturers/sole selling
agents/dealer for proprietary items.
iii) Emergent purchases without inviting tenders for
value up to Rs. 50,000.
(C) Single select party- Placing an order on one selected
party with or without negotiation.
6.01.4: DGS & D Rate Contract - DGS&D, New Delhi have
entered into rate contracts for a number of items of wide
demand some of which are also purchased by NFL units

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regularly. Though NFL is not a Direct Demanding Office under

the DGS&D contracts, it is possible for NFL as a Public Sector
Undertaking to avail of the attractive prices and terms of these
DGS&D Rate Contracts. Orders/ enquiries may, therefore, be
issued to the supplier(s) having DGS&D Rate Contract as per
the DOP for the procurement of the relevant items.
6.01.5: Petty Purchases - All purchases up to the value of Rs.
3000 per item shall be considered as petty purchases. These
purchases can be affected by Purchase Section without calling
for tenders and without issuing Purchase Orders. The value of
Petty Purchase shall not exceed Rs. 15000 per Indent. After
purchase, the Purchase Section shall hand over the material
on Local Purchase cum Receipt Voucher (Annexure-VII) in 4
copies with distribution as below:
i) Accounts Department - One copy (Original)
ii) Purchase Section - One copy
iii) Stores/Indentor - One copy
iv) Supplier, if required - One copy
All petty purchases shall preferably be made on payment
basis. Hence, material must be inspected at supplier’s shop
thoroughly before acceptance. Indentor’s help can be taken
wherever needed. Where credit is obtained and when supplies
are made by the supplier at site, the inspection can be done
at site in which case one extra copy of LPV shall be prepared
and handed over to the party in token of Purchase Order. These
LPVs shall be serially numbered by Purchase Section. The total
value of the Petty purchases on annual basis shall be as per
Delegation of Power.
The petty purchase can also be affected from e-commerce
companies like Flipkart, Snapdeal, Amazon, etc.
6.02: Tender System and General Principles:
(A)- Enquiries would be issued in the proforma at Annexure-
III. Normally, enquiries will be dispatched by ordinary
post and in important cases under Registered Post/Speed
Post. Except where otherwise provided, tenders must be
invited for all works and for all purchases, including plant
equipment, machinery etc. However, tenders need not be
invited for:
a) Petty Purchases valuing up to Rs. 3000 per item: as
per clause no 6.01.5.

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b) Emergent Purchases: as per clause no 4.06.

(B)- All the indents having estimated value Rs. two lakhs and
above shall be processed through e-tendering as per the
Policy/Guidelines issued from time to time.
i. However for all Proprietary / OEM purchases, prior
consent of vendors shall be taken about their
willingness to participate in e-tendering. For this
purpose, all known vendors shall be asked to send
their confirmation. Enquiry shall be issued thereafter
through e-tendering to them.
ii. In case vendors are unwilling to participate through
e-tendering the proposal for waiver of e-tendering
may be submitted for approval by unit with due
justification. Director (Tech) shall approve all the
proposals for waiver of e-tendering for Proprietary /
OEM purchases.
iii. Other cases shall however require the approval of
C&MD as per present practice.
After reverse auction, negotiation with lowest bidder(s)
should be avoided, unless rates are considered unreasonable.
6.03:
6.03.1: Special Conditions in the Notice Inviting Tenders
(NIT) - The General Terms and Conditions shall always be
attached with the Notice Inviting Tenders. However, for
certain categories of items, some special conditions, such
as the method of manufacture, applicable codes, inspection
procedures etc. may have to be stipulated in the NIT which
are not covered under the General Terms and Conditions.
Such special conditions should be made clear in the NIT for
compliance by the Tenderers.
6.03.2: Two Part Bid procedures may be adopted in respect
of the tenders for high value and specific items and jobs. All
tenders excluding Proprietary/single select party basis; having
estimated value as more than Rs. 20 lakh shall be issued under
Two Part Bid System. In the first part, full details of scope of
supplies, technical specifications, experience and commercial
conditions should be submitted by the Bidders. In the second
part, schedule of rates/prices for various items may be provided
by the bidder along with the break-up of prices, asked for. Both
the parts may be submitted by the bidders in two separate
sealed envelopes put in one outside envelope, super scribing

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clearly the reference of NIT and the date of opening of tenders.

Part – I may be opened on the scheduled date of opening of
tenders. After bringing all the qualified parties reasonably at
par, the second part (containing Pricing Schedule) may be
opened in the presence of representatives of the parties who
may like to attend. Any revision in price structure and/or change
in commercial terms and conditions which have a bearing on
prices, if done after the due date and time for submission of
bids, shall amount to post tender revision and is not permitted.
Only in cases, where techno-commercial negotiations are
conducted with all the bidders to clarify the deviations vis-à-
vis tender specifications/requirements, which lead to changes
in terms/conditions and/or technical specifications, the bidders
may be given a fair chance to revise their price bids accordingly.
However Two part Bid system can also be followed for items
having estimated value up to Rs. 20 lakh, depending upon
merit of the case.
6.03.3: In case of Two Part Bids, approval as per following
would be required for opening of Price Bids:
i) All indents where the estimated value is less than Rs. 5
Lakh-: With the approval of Head of Materials Department
ii) Indents having estimated value between Rs. 5 Lakh and
Rs. 20 Lakh - : With the recommendations of Indenting
Department, Concurrence of F&A and approval of Head of
Materials Department
iii) Indents having estimated value of Rs. 20 Lakh and above
-: Recommendations of Tender Committee, Concurrence
of F&A and approval of Unit Head/GM (Mtls) at CO/D (T).
6.03.4: The specifications of equipment and spares for cases
valuing Rs One crore and above, be finalized as per guidelines
indicated in Annexure-‘XVII’.
6.03.5: In all the cases involving competitive bidding under
two part bid system where approval of C&MD/ D(T) shall be
required, as per DoP (based on estimated value of the indent),
the following procedure shall be followed:
a) The eligibility criteria to be incorporated would require
final approval of D (T) after recommendations of Tender
Committee, concurrence of local Finance and approval of
Unit Head.
b) The Technical recommendations of Tender Committee
duly concurred in by local Finance and approved by Unit

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Head shall be submitted for final approval of D (T) before

notifying opening of Price Bids. However, if more than
one offer is received and all the offers are considered
technically suitable, Unit Head is authorized to approve
opening of price bids after recommendations of Unit level
Committee and concurrence of Unit Finance.
6.04: Monetary Limits for the issue of Tender Enquiry
Except where otherwise stated, the enquiries should be issued
as under:
a) Open Tenders: Above Rs. 40 Lakh
b) Limited Tenders: Up to Rs. 40 Lakh
c) Proprietary Tenders: To the OEM and its Authorized Dealer
only
d) Tenders for Single Select Party/ Single Select make - : All
procurement of items where the procurement is proposed
to be from a Single Select Source or single select make.
Notes:
(1) Even in cases exceeding Rs. 40 lakhs Open Tender need
not be issued where Pre-qualification of suppliers has
been done by following the prescribed procedures and the
list has been approved by Unit Head [D (T) / C&MD in
case of Corp. Office]. Where pre-qualified list is approved
by competent authority, further approval of Unit Head [D
(T) / C&MD in case of Corp. Office], for issuing LTE to pre-
qualified vendors is not required. The LTE will be issued to
all vendors on approved list for the indented item.
(2) Notwithstanding the provisions of above paragraph, the
Unit Head [D (T) / C&MD in case of Corp. Office] may
authorize to issue enquiry through limited tenders in
respect of procurement of above Rs. 40 lakhs where :
a) Due to emergency, the Company’s interest warrants
such a course.
b) The source of supplies is limited and open tenders
are not likely to serve any purpose;
6.04.1: In case of limited tender enquiries, minimum number
of suppliers (on approved list) to whom enquiry must be issued
shall be as under:
a) Indents valuing up to Rs. 5 Lakh -: Six or all the parties
on the list (if the list contain less than six).

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b) Indents valuing above Rs. 5 Lakh and upto Rs. 10

Lakh -: Ten or all the parties (if the list contains less
than Ten).
Note: Selection of Vendors may be done on the basis
of their response to our previous enquiry/ last
PO for same/similar item. L-1, L-2 & L-3 Parties
of previous enquiry/ last PO should always be
considered and remaining Parties may be taken
by rotation.
c) Indents valuing Rs. 10 Lakh and above -: All the parties
available on the P.Q list.
6.05: Period of submission of Tenders:
Sufficient notice should be given for submission of tenders,
which under normal circumstances may be as under:
a) Limited Tender: Minimum 20 days
b) Single Tender/Proprietary/ Single Select party/Single
Select make-: Minimum 7 days:
Note: NIT for such procurements may be issued by Fax/
Email/by hand against acknowledgment.
c) Open Tender (other than e-tender):
i) India - 40 days (Minimum 30 days) from the date of
1st publication in paper
ii) Abroad - 10 Weeks (Minimum 8 weeks)
d) e- Procurement: (Minimum 1 week)
6.06: EMD, SECURITY DEPOSIT AND PBG:
6.06.1: Earnest Money and Security Deposit must be insisted
upon in respect of items which are critical / important and
will hamper production, such as HDPE/Jute Bags, Capital
Equipment, Rate Contract items, etc.
6.06.2: EMD need not be insisted for proprietary purchases
or purchases from single select source or single select item.
Offers of OEMS/PSUs/Govt. companies may be considered with
appropriate loadings as per sr. no.7.04. Unit Head would be
empowered with concurrence of F&A Department to approve
waiver of EMD in other cases by appropriate loadings (with
recording of substantial reasons for such waiver) to bring the
offers at par. However, this option shall be exercised only in
exceptional cases. Offers without EMD are otherwise liable for
rejection straightaway.

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6.06.3: Firms registered with NSIC under its single Point

Registration Scheme/Registered MSEs shall be given following
benefits while making procurement:
a) Issue of Tender Sets free of cost
b) Exemption from payment of Earnest Money
c) Waiver of Security Deposit up to Monetary Limit for which
the unit is registered.
For above exemptions, NSIC Certificate shall be
considered only if the item being procured is appearing
in NSIC Certificate in the form of broad description or
similar nature to the item as per requirement.
6.06.4: The following rates for Earnest Money (EMD) and
Security Deposit(SD) shall be applicable:
I) Earnest Money Deposit: In Rupees
a) Tenders with estimated value up to Rs. 10 Lakh – Nil
b) Tenders with estimated value more than Rs. 10 Lakh and
up to Rs. 15 Lakh -Rs. 15000.
c) Tenders with estimated value more than Rs. 15 Lakh and
up to Rs. 25 Lakh -:Rs. 25,000
d) Tenders with estimated value more than, Rs. 25 Lakh and
up to Rs. 50 Lakh -:Rs. 50,000
e) Tenders estimated to cost more than Rs. 50 Lakh -:Rs. 1
lakh
EMD can be submitted in the form of:
i) e-transfer in NFL account through RTGS/NEFT.
or
ii) Bank Guarantee in the prescribed format from any
scheduled Bank excluding Gramin/Co-op Banks. The BG
should be valid for a period of minimum 3 months and
the party should give an undertaking for extension of the
validity of the BG in case the same is desired by NFL.
(Annexure-XIII)
Cheques shall not be accepted in any case. No interest
shall be payable on Earnest Money Deposit.
II) Security Deposit:
Successful Tenderers shall be required to submit Security
Deposit for 10% of the order value for all purchase orders

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valuing Rs. 10 lakhs and above. No security deposit shall be

required for Purchase Orders valuing less than Rs. 10 lakhs.
In case, enquiry has been floated for stores valuing Rs. 10 lakhs
& above and subsequently decided to split the order between
two or more parties, SD shall be obtained on the basis of value
of split order and not on the basis of original enquiry value.
Unit Head would be empowered to waive of SD in respect of
proprietary item / items from single select source / single
select make.
Mode of Payment:
i) e-transfer in NFL account through RTGS/NEFT.
or
ii) Bank Guarantee in the prescribed format (Annexure-
IV) from any scheduled Bank excluding Garmin/Co-op
Banks. The BG should be valid for the Delivery Period
plus 3 months’ claim period.
III) Performance Bank Guarantee: The period of PBG
desired to be submitted as per terms of the P.O would be as
follows:
-Warranty Period plus 3 months’ claim period
IV) SD-cum-PBG: Vendors may be allowed to submit SD-
cum-PBG for the proposed amount. Such BGs should be valid
for Delivery Period plus Warranty Period plus 3 months claim
period. (Annexure- XII).
No interest shall be payable either on Security Deposit /
Performance Bank Guarantee / SD-cum-PBG.
Security Deposit against Rate/Running Contracts (RC) of items
like bulk chemicals e.g. Caustic Soda Lye / Sulphuric Acid etc.
(having estimated value above Rs. 25 lakhs) where deliveries
are in phased manner would be 5% of the RC value, subject to
a minimum of Rs. 2.50 lakhs. For cases with estimated value
below Rs. 25 lakhs Security Deposit shall be 10% of RC value.
Value for the purpose of determination of Security Deposit
shall be the Basic Value excluding Taxes and Duties, Freight
and Insurance etc.
6.07: Refund of Earnest Money / Security Deposit/PBG/ SD-
cum-PBG:
Earnest Money should be refunded to the unsuccessful
tenderers on the recommendations of the Head of Materials

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Department immediately after placement of order against the

tender. Security Deposit of the parties on whom Purchase order
have been placed, shall, however, be refunded as per terms and
conditions of the Purchase Order after consulting the indenting
Department. PBG / SD-cum-PBG should be refunded on the
recommendations of the Indenting Department and approval
of the Head of Materials Department, after completion of
stipulated period and conditions.
6.08: Delayed/Late offers (bids):
Delayed/late Offers in Single Bid as well as Two-Bid System
are those offers, which are received after the due date/time as
proclaimed in NIT.
6.09: Treatment to Delayed/late offers (bids): (A) Late/
delayed offers in Single Bid as well as Two-Bid System:
(A1) No late/delayed offer should be considered except in
case of enquiry to Single Party on nomination basis or
Proprietary item basis. However, admittance of late/
delayed offers in such cases shall be done with the
approval of Head of Materials Department.
(A2) Tender Opening Committee shall ascertain whether
the offer is late/delayed offer based on the guidelines/
parameters as stated above. In case it is a late/delayed
offer, the same shall be forwarded to concerned dealing
officer of Purchase Section without opening it. The
Committee shall handover such sealed late/delayed
offers to concerned dealing officer against signatures in
a register having columns as below:-
(1) (2) (3) (4) (5)Date (6) Name of

Sr. No. Tender Due Name of receipt concerned
No. date. of of late/ officer of
Bidder. delayed Purchase
offer in Section
Purchase receiving late/
Section. delayed offer.
(7) (8) Date when (9) Signatures of (10) Remarks if

Signature Sealed late/ tender opening any.
of delayed offer committee.
concerned handed over to
officer of concerned officer
Purchase of Purchase
Section. Section.

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Late/delayed offers which are not to be opened shall be kept

in the concerned Purchase File. For such cases, the concerned
Purchase Officer shall record (in the register of late/delayed
offers) in the remarks Column that this late/delayed offer was
not to be opened.
In case where late/delayed offers (both in Single bid as well as
two-bid system) are not being opened, the concerned Vender
is to be informed as below:-
“Your offer against our Tender No........Dated........Due on ……..
at……hrs has been received at……hrs on…..Thus your offer is a
late/delayed offer.
As you have not submitted your offer in time, your late/
delayed offer is not being opened/considered. In case you
have submitted EMD with your bid or e-transfer in NFL account
through RTGS/NEFT, please inform the same so that your EMD
can be returned back.
In case a bidder has submitted EMD in their late/delayed offer
and the same is not being opened, the original EMD submitted
by the bidder shall be returned to them immediately. For this
purpose, the envelope shall be opened (only outer envelope/
technical envelope in case of Two part bid system) by the
Tender Opening Committee. The Original EMD instrument shall
be taken out and returned back to the bidder. The offer shall be
re-sealed by the Committee and shall be kept with NFL. Such
late/delayed offers are not to be returned back to the bidder.
6.10: Opening of Tenders:
6.10.1: All tenders will be received in sealed cover by post
or deposited in a locked and sealed tender Box, which would
be kept at a conspicuous place. The tender box shall be kept
locked and the key would be kept with an officer of the Purchase
Section.
Tenders will be collected by the officers nominated for opening
of the tenders. There will be at least two such officers, one
from the Purchase Section and one from Finance and Accounts
Department. At the time and placed fixed, the tenders will
be opened and read out, wherever possible and practical, in
the presence of tenderers who may be present. Tenders will
be authenticated by initials of the officers of the Purchase
Section and Finance & Accounts Departments. Tenders shall
be numbered serially and marked as Serial No./Total No. of
tenders. All pages of the tender shall be marked Tender No.
and initiated by officers of Purchase and F&A. All cuttings

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and overwriting would also be initialed by representatives

of Purchase and F&A and the numbers of such cuttings/
overwriting would be specified on last page of Tender. The
prices and delivery terms shall be encircled. In case the prices
in the price schedule are not written in words, the same shall
be written down by the representative of Purchase Section.
Once tenders are opened, no alteration/modification shall be
permitted in the tender. All tenders shall be kept as confidential
documents in safe custody. These will, then, be entered in
a Register. Total number of tenders received, shall also be
entered. Representative of Purchase & Finance Departments
shall sign the statement in the Register. Representatives of the
parties, who may be present, shall also sign in the register.
(1) The format of this register shall be maintained as below:-
“Date of tender opening: __________
Sr. Tender Brief No. of LTE/ Single No. of Rem-

No.* No. & Descri parties PROP/ Part/2- in arks
Date* ption To OPEN* Part time
of whom bidding offers
items* enquiry recd.
issued*
Late/delayed offers opened:-
Sr. No. Tender No. No. of L/D Remarks

offers opened
(Name & signature of F&A Rep.) (Name & signature of Materials

Dept. Rep.)”
Such record shall be maintained for all tender opening days.

Entries as per Column No. 1,2,3,4,5 & 6* i.e. Sr. No., Tender
No. & date, Brief description of item, No. of parties to whom
enquiry issued, LTE/PROP/OPEN, Single Part/2-Part Bidding
shall be made in the register as and when enquiries for different
cases are issued to the vendors. Other entries shall be made
by the Committee members who open the Tenders on that
particular day.

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(2) Signatures of the representative of vendors who are present

during tender opening are to be obtained on separate sheet.
The format of this sheet shall be as below:-
Tender Due on No. of No. of in No. of Date of

No. and Tenders time late/ opening
date issued offer Delayed
received tenders
Description
Sr. No. Name Name & sign Remarks

of of representatives
Company of parties, if any
Name Signatures
Offers have been opened as above.

(Name & signature of F&A Rep.) (Name & signature of Materials
Department Rep.)
Notes:
(i) Sheet as per Sr. No. 2 above shall be made in duplicate.
The original sheet along with offers opened shall be filed in the
relevant Purchase File. The second/copy sheet shall be filed
date wise in a separate Box File which shall be kept/maintained
along with Tender opening Register as per Sr. No. 1 above.
(ii) Details viz; Name of all parties whose offers are opened
on a particular day against each tender shall be entered in the
sheet as per Sr No. 2 above irrespective of the fact whether
any representative of that company attended tender opening
or not.
(iii) Separate sheets shall be made for each tender/case for
which offers are opened on that day.
(iv) Such records shall be maintained separately for in time
and late/delayed offers.
6.10.2 Offers received by FAX/e-mail/without proper
superscription on envelope - Offers shall generally be
invited in sealed envelopes with the instructions to Bidders
to mention the complete tender Number of NFL and due date
on the outer envelope. However, sometimes offers may be
received by FAX and or e-mail. Sometimes offers may also

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be received in sealed envelope without proper superscription

on the envelop i.e. without giving details of tender No., due
date, etc. Tenders received in open condition by way of
FAX/e-mail or in closed/sealed conditions but without proper
superscription on envelope shall be dealt with in the following
manners: -
(a) Tenders received by FAX/e-mail or in open condition
before due date shall be put in an envelope super scribed
with tender reference and due date of opening, stapled
and thereafter shall be deposited in proper Tender box to
be opened subsequently on due date. Such offers shall
be admitted only with the approval of HOD of Materials
Department of the concerned Unit. Unless specifically
asked in NIT for submission of offers by FAX/e-mail,
vendor should send their original signed offer in sealed
envelope subsequent to sending their prior offer by FAX/
e-mail. In case there is difference in rates, terms and
conditions in signed original offers viz-a-viz offer earlier
received by FAX/e-mail, such offers shall be treated as
void/unacceptable and may not be processed further for
evaluation/placement for orders
(b) Tender received before due date in closed/sealed condition
but without necessary superscription on the envelope
shall be opened to ascertain the tender No. and due date
of opening. The same shall be super scribed with the
required details i.e. Tender No. and due date, etc. by the
concerned purchase executive with the remark “opened
due to absence of superscription” duly signed by him and
put in the Tender Box.
(c) Open offers or offers without proper superscription
on the envelope received after due date of opening of
tenders shall be treated as ‘late offer’ and dealt with
accordingly. However, open offers or offers without proper
superscription on envelope received in time or after due
date in response to single tendering/proprietary tender
enquiry shall not attract the above formalities (i.e. late
offer).
6.12: Evaluation of Tenders:
Issue of NIT, Receipt of Tenders, Custody of tenders, Tabulation
in Comparative Statement, Recommendations by User
Department and presentation to the Tender Committee will be
coordinated by the Purchase Section maintaining confidentiality
of these documents.

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7.00 SCRUTINY OF TENDERS AND SPLITTING OF ORDERS:

7.01: Technical Scrutiny of Bids:
The technical aspect of bids should be evaluated by preparing
a Technical Comparative Statement (TCS) indicating technical
conditions as per requirement of NIT and Vendors’ response.
The TCS shall be prepared by the Indenting Department.
The deviation/exception from ITB requirements should be
scrutinized thoroughly. The deviations, which otherwise
comply with NIT requirements, such as alternate, equivalent
or superior material of construction are considered
acceptable deviations. The deviations, which are not
acceptable, are considered substantial deviation and such
bids should be considered non-responsive. The TCS shall
indicate reasons for acceptance/rejection of bids and clearly
indicate technically acceptable bids. Indenting Department
should certify that all acceptable bids are technically at par
for common evaluation.
7.02: Commercial Scrutiny of Bids:
A Comparative Statement of commercial terms and conditions
as per NIT requirement and Vendor’s response thereof should
be prepared by the Materials Department. The deviations
should be scrutinized. Deviations such as non-submission of
EMD, non-acceptance of securities, requirements etc. should
be considered substantial deviation and such bids should
be considered commercially non-responsive or should be
considered with loadings. Deviations, consequence of which
can be measured in terms of value, such as payment terms,
non-acceptance of liquidated damages etc. are not considered
substantial deviations. However, for evaluation purposes,
these deviations will be taken into account. The commercial
comparative statement shall indicate reasons for acceptance /
rejection of bids and clearly indicate commercially acceptable
bids. The bids, which are technically and commercially
acceptable, are considered substantially responsive bids. In
case of single stage bidding procedure, the price evaluation
statement of all bids should be prepared for comparison and
selection of suitable bid for placement of order. In case of two
stages bidding procedure the price bids of only those bidders
should be opened which are substantially responsive. The
price evaluation statement of all such bids should be prepared
for comparison and selection of suitable Vendor for placement
of order.

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7.03: Quotation Comparison Statement (QCS):

After the tenders are opened a Quotation Comparison
Statement (QCS) of all the bids opened shall be prepared
by the Materials Department. The factors (other than
price) to be used for determining the lowest evaluated bid
should to the extent practicable be expressed in monetary
terms or given a relative weightage in the evaluation. The
methodology of bid-evaluation should be clarified in the
NIT itself or communicated to all tenderers before price bid
opening with proper approval. The Materials Department
shall ascertain whether the bids
(i) meet the requirement of NIT;
(ii) have been properly signed;
(iii) have any error in computing (in such cases, if there is error
in calculation with respect to rate and the total value, the
total value quoted by the bidder will be taken into account
for consideration for the purpose of evaluation. Similarly,
if an amount is expressed in figures as well as words, the
amount given in words will prevail); and
(iv) are otherwise generally in order. These conditions should
be made clear in the NIT itself.
A bid, which contains substantial deviations from or
reservations to the terms, conditions and specifications from
the NIT, may be considered, after approval of competent
authority. The bidder shall not be permitted to correct or
withdraw deviations or reservations of his own, once price
bids have been opened. The purpose of bid evaluation is
to determine the cost of each bid to the Department in a
manner that will permit a comparison of bids on the basis of
their evaluated cost. The bid with the technically acceptable
lowest evaluated cost but not necessarily the lowest quoted
price may be selected for placement of purchase order. An
extension of bid validity shall be asked in writing from all
bidders, if justified by exceptional circumstances. The bids
conforming to the specifications and the lowest in value will
be rated in the QCS as lowest (L-1), second lowest (L-2),
and third lowest (L-3) and so on. The bids shall be evaluated
only on the basis of set criteria to be clearly stated in the
bid documents/informed to all bidders before the price bid
opening. There will not be any change in the criteria after
opening of price bids. No document presented by the bidder

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after closing date and time of the bid to be taken into account
for evaluation unless it is of a purely technical nature which
have no bearing financially on the contract and which does
not seek major changes in technical specification given in
the bid documents. If a bidder offers a rebate unilaterally
after due date of submission of bids, it is not to be taken into
account for evaluation purposes, but if that bidder emerges
as the lowest evaluated bidder the rebate offered by him is to
be taken into account while forwarding the recommendations
to the accepting authority for placement of order. If any cost
compensation is carried out on account of technical deviation
or on other factors the same is to be mentioned in the QCS
in terms which can easily be understood by non-technical
officials. Use of white ink for correction in vital documents
viz. TC Notes, Payments Vouchers / Certificates etc. is not
desirable. Corrections if any required to be made in these
documents can be carried out by circling / cutting the previous
figure / word and indicating the correct figure / word using
pen with proper initials.
7.04: Evaluation and Comparison of Price Bids:
The evaluation of bids shall be done on the basis of “landed
cost” at plant site. The evaluation of bulk materials will be
carried out on item wise basis to the extent possible to achieve
maximum economy. The evaluation of bids shall take into
consideration the following aspects: - All cost implications
including the following; wherever applicable – deficient bids
shall be loaded for cost of deficiency on Base Price, which shall
include cost of spares, inspection, packing, forwarding and any
other charges/taxes/duties etc. up to our site in case of Indian
Vendors and CIF Port of Discharge in case of foreign bidders. -
Base Price of equipment and material;
- The cost of spare parts for erection, commissioning and
maintenance spares as required. This cost will be added to the
cost of equipment. Non-quoted spares will be loaded at the
highest rate quoted by any other bidder or at estimated price
in case quoted prices of other bidder are not available.
- Loading Taxes and Duties for Indian Bidders:-
As quoted by Indian Bidders, otherwise as applicable.
- Any clarification / confirmation having reduced price
implications received from Bidder after price Bid opening
shall be considered only for ordering purposes and not for

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evaluation purposes. However, clarification/confirmations

sought by NFL having additional price implication if
accepted shall also be considered for evaluation purpose.
- Discount
Any conditional discount given by the Bidder such as
minimum order value on certain group of items etc. is
not to be considered for evaluation purpose. However,
conditional discount offered by Bidder on total order
value will be considered if the evaluation of the enquiry
is carried out for all items of the enquiry. For ordering
purpose all such discounts shall be considered.
- Other Charges
Other charges, if any, such as documentation charges for
providing extra sets of Drawings/ reproducible etc. shall
be considered as under:
In case of item wise evaluation, the documentation
charges quoted by the Bidder, will be loaded on each item.
In other cases, it will be loaded on total cost.
- No CENVAT credit will be considered for evaluation
purposes but excise registration will be insisted upon.
- Third Party Inspection charges wherever applicable.
Wherever Bidders have not indicated third party Inspection
charges, highest third party Inspection charges quoted by
other Bidder shall be loaded for comparison purpose.
- Calculation of Supervision Charges for Erection and
Commissioning:
Wherever Bidder has not indicated per diem rate and
duration of stay at site for carrying out erection and
commissioning services at site, the offer will be loaded
from the highest rate and maximum period quoted by the
other Bidder including cost of to & fro air fare charge and
income tax to be borne by NFL wherever applicable.
- Escalation: A firm price bid shall be preferred compared
to a bid with variable price. A bid with price variation may
be considered for evaluation provided that price variation
is based on well defined formula indicating the escalation
ceiling in % of bid price and in such cases escalation
ceiling indicated by bidder shall be loaded to work out
evaluated price.

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- In case a variable price bid indicates the well defined price

variation formula but no escalation ceiling, such bid shall
be loaded for highest escalation ceiling indicated by any
other bidder or such bid may be considered nonresponsive
if sufficient numbers of acceptable bids are available.
- In case a variable price bid neither indicates price
variation formula nor ceiling on escalation, such bid
shall be considered non-responsive and rejected. The
tenderers must accept the terms and conditions stipulated
in NIT failing which the offer is liable to be rejected at
the sole discretion of NFL. NFL however, may at its sole
discretion accept offers having deviation to NIT terms
and conditions in respect of EMD, Security Deposit and
Liquidated Damages etc. by adopting the loading criteria
as below. All loadings shall be on CIF (Import)/ Ex- Works
(Domestic) prices.
- EMD: Full EMD value shall be loaded to the quoted rates
of those tenderers who have not submitted the requisite
EMD along with the quotations to generate competition.
- Payment Terms:
Deviation in Payment Terms:
NFL will not make any advance/progressive payments.
In exceptional cases, advance/progressive payments can
be agreed subject to payment of interest @ SBI MCLR
+ 1% and submission of acceptable unconditional Bank
Guarantee (BG) of equivalent amount (including interest
amount) as per ‘NFL’ format. The BG shall have sufficient
validity, i.e., quoted delivery period + three months. For
any advance/progressive payments guidelines of CVC
shall be followed. The deviation in differential payment
terms with respect to NIT clause shall be loaded as under
for interest @ prime lending rate (SBI MCLR) + 1% for
the period:
(a) Interest calculation against Mobilization Advance.
Sr. Payment Terms Period of Loading
1. Advance against LOI/PO Full delivery period + 30 days
(b) Interest calculation on progressive payment.
Interest on Progressive payment shall be calculated on FOB/
Exworks price for the following period:

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Sr no. Payment Terms Period of Loading
Against submission of
1. Drawing Full delivery period
less
one month
2. Against drawing Full delivery period
Approval less
one month
3. Against placement of a. If delivery period
PO for raw material < 8 months Full
delivery period
less two months
b. If delivery period
> 8 months Full
delivery period
less three months
4. Against Shipment Full delivery period
of raw materials less five months or
five months whichev-
er is
more
5. Against Receipt Full delivery period
of raw materials less
six months or four
months, Whichever is
more
6. Against Payment for dispatch
of materials/through bank
6 a. Foreign Bidders Three months
6 b. Indian Bidders Depending on Deliv-
ery
Conditions viz. Ex-
works –
one and half months
FOR destination –one
month
7. Against Payment Nil.
within 30 days
- Interest will also be charged on advance payment if
supplies get delayed beyond delivery schedule stipulated
in the P.O.
- *Interest on interest-free advance payment, if insisted by

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the bidder, shall be loaded at applicable prime lending rate

(SBI MCLR) + 1% or as may be indicated in the bidding
documents.
- For Other Deviations, Following Loading criteria
shall be done:
i. Packing and Forwarding (P &F):
2% of Basic Price if party has not quoted P&F charges
i.e. 1% each for packing and or forwarding respectively.
Also NFL’s maximum liability to pay such charges
shall be limited to the amount loaded for evaluation
purposes.
(Suitable clause is to be incorporated in the NIT/PO,

accordingly)
ii. Loading of freight in percentage terms as under:
Inland Transportation Charges:
A) In case weights and distances are known for all

suppliers:
i) FOR SMALLS: Inland transportation charges

shall be calculated at the rate of Rs. 5.00 per
KM/MT.
ii) FOR TRUCK LOADS: @ Rs. 4 per KM/MT
B) While undertaking item-wise evaluation where

item wise weights are not available, the following
procedure shall be adopted for calculating
transportation charges up to NFL site:
1. Transportation from the vendors --
1% of CIF/Ex-works Prices situated within a distance

of 400 KMS.
2% of CIF/Ex-works Prices situated within a distance

of 401 to 800 KMS.
3% of CIF/Ex-works Prices situated at a distance of

more than 800 KMS.
All Indian parties are required to quote ex-works Price and

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freight charges up to NFL Site, compulsorily. If all the

parties have given freight charges up to site the same shall
be considered for evaluation. However, if only some parties
have given freight charges, NFL reserves the right to load for
such parties who have not quoted freight charges with freight
charges as above. NFL’s decision on this regard shall be final
and binding on these Bidders.
iii. Transit Insurance Premium as below:
Inland Insurance: The inland insurance shall be calculated at
the rate of 0.15% of CIF/FOR prices.
For Foreign Bidder: Transit Insurance @0.11% of FOB/FCA
price shall be taken for calculating assessable value for working
of the custom duty. The above transit insurance shall not be
considered for working out the landed cost.
For arriving at the landed cost, transit insurance shall
be calculated @0.15% of (FOB/FCA cost + Ocean/ air
freight+P&F+Port Handling + Inland Freight).
For Indian Bidder: To arrive at the landed prices, the transit
insurance shall be calculated @ 0.11% of (Basic Price
+P&F+Excise duty+CST/VAT + other statutory taxes/levies (if
any) + Inland Freight) for Indian bidders.
iv. Loading On Account Of Longer Delivery Period
a) Wherever Bidders quoted delivery is higher than the
preferred delivery period as indicated in the ITB document,
the following loading criterion shall be applied:
Loading @ 2 % per month on FOB/ Ex-works price for the
following periods:
Delivery Quoted Loading Period

----------------- ------------------
Foreign/Indian Bidders (Effective delivery-Preferred delivery)
In order to account for Sea shipment and port clearance

time the difference between FOB delivery date and EX-Works
delivery date is to be considered as 1.5 months.
No credit shall be given for early delivery period. Quoted
delivery has to be computed for effective delivery as given
below. Preferred delivery for Foreign Bidder has to be as per
FOB delivery at port of loading and for Indian Bidder as delivery
on ex-works basis.
b) The loading as mentioned at (a) shall not be applied

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in case the quoted delivery does not meet the project

requirement and the Bid shall not be qualified.
- Calculation of Effective Delivery Period
The delivery shall be counted from LOI. Wherever the Bidder does
not agree to the above condition following criteria will be used for
calculating the effective delivery period for evaluation purpose:
Delivery basis as per Bidder offer - Loading in months
To be added
to quoted delivery
Ex-works basis for Foreign Bidders - 15 days

On readiness for Inspection for
Foreign Bidders - One month
From receipt of PO - One month
From drawing approval - Two months or time
indicated for
Submission
of approval ,
whichever is more.
On receipt of Letter of Credit - Two months
When the Bidders ask for grace period for applicability of
damages, the same shall be added to the quoted delivery
period. The delivery period computed on the above basis shall
be taken as delivery period for each Bidder for the purpose of
evaluation.”
v. Loading on account of discrepancy in the Warranty/
Guarantee
Period:
Wherever bidders quote reduced warranty period, following
loading criteria shall be adopted:
[10% of CIF/ex-works price x (No. of Months as per NIT– No.
of Months quoted)]
No. of Months as per NIT
vi. Loading on account of discrepancy in Performance
Bank
Guarantee:
PBG Quoted Loading Criteria

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Less than 10% - 10% - quoted percentage of CIF/

Ex-works prices
NOTE: Over-riding Conditions for (v) & (vi) above.
If the sum of (v) & (vi) above is more than 10% of CIF/ex-
works prices, then the loading shall be limited to 10%
vii. Non-submission of SD:
The loading shall be adopted for shortfall in the bank guarantee
agreed by the bidder, for example, NIT calls for bank guarantee
for 10%, then loading shall be done as under @ lending rate
(SBI MCLR) + 1% , on short fall in Bank Guarantee value
agreed by the bidder for delivery period with additional one
month period. Bank guarantee for SD Loading Criteria Less
than 10%. (10% - quoted percentage) of basic price @ prime
lending rate (SBI MCLR + 1%); on short fall in Bank Guarantee
value agreed by the bidder for delivery period with additional
one month period.
Bank guarantee for Loading Criteria

SD
Less than 10 % (10%- quoted percentage)of basic
price @ prime lending rate (SBI
MCLR + 1%), on short fall in
Bank Guarantee value agreed by
bidder for delivery period
with additional one month period.
Viii. Loading for discrepancy in acceptance of Liquidated

damages Clause:
If deviation is noted in quoted damages, the proportionate
loading for shortfall shall be added as follows:
Quoted Damages Loading Criteria

i) 0.5 % per week subject to a ceiling NO LOADING
of 5% of total order value.
ii) 0.5 % per week subject to a ceiling 2.5% LOADING
of 2.5% of total order value.
iii) Damages accepted on undelivered 2.5% loading
value Instead of total order value
iv) Non-acceptance of damages 5% loading
- In case any of the vendor does not accept our standard

L.D clause or accept LD less than a ceiling limit of 5%,

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loading for balance amount shall be done on the quoted

(Ex-works/CIF value) prices.
- NIT CONDITIONS:
Whenever the bidder is silent about the acceptance of NIT
conditions such as performance bank guarantee, warranty
period, liquidated damages etc, it shall be presumed that the
bidder has accepted these conditions and no loading shall be
done while undertaking evaluation. (Suitable clause is to be
incorporated in the NIT, accordingly)
7.05: All the papers & documents received along with the tenders
shall be kept in the file of Materials Department and serially
numbered so as to avoid misplacement of any paper which
may be required subsequently for reference.
7.06: Splitting of Orders:
In case the NIT/Tender contains more than one item and
difference in rates of various items between the lowest tender
and the tenderer on which major order is being placed is up
to 10% of value of Purchase Order or Rs. (3000) whichever
is less, Purchase Order need not be split provided the party
remains overall L-I for items being ordered. Such cases shall
not require financial concurrence.
8.00 TENDER COMMITTEES

8.01.1: All proposals for purchases exceeding Rs. 15 Lakh
in value (excluding taxes and statutory duties) would require
scrutiny and recommendations by a Tender Committee. Tender
Committee shall be constituted as mentioned below:
1. Purchase/Service Contracts above Rs. 75 Lakh
i) Executive Director / Unit Head - Chairman
ii) G.M (O&M) - Member
iii) DGM of Indenting Department/HOD - Member
iv) DGM (Matls) /HOD - Member
v) DGM (F&A) / C.M (F&A)/HOD - Member
2. Purchase/Service Contracts above Rs. 30 Lakh and up to
Rs. 75 Lakh
i) Unit Head / G.M (O&M) - Chairman
ii) D.G.M. of Indenting Department/HOD - Member

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iii) D.G.M. (Matls) / (CM-Matls) - Member

iv) C.M. (F&A) /HOD - Member
3. Purchase/Service Contracts above Rs. 15 Lakh and up to
Rs. 30 Lakh
i) DGM (Matls)/DGM of - Chairman
Indenting Department
ii) Sr. Mgr /C.M of Indenting - Member
Department
iii) Mgr/Sr. Mgr /C.M (Matls) – Member
iv) Mgr/Sr. Mgr / C.M (F&A) – Member
Tender Committees higher than stipulated above may be
constituted in special cases depending upon the merit
of the case. Additional members may also be co-opted
wherever considered necessary.
Notes:
i) The following cases need not be put up for evaluation by
the Tender Committees where:
a) item is of proprietary nature and
b) The orders are to be placed on Govt. companies
like IOCL, SAIL, MMTC etc. or against DGS&D rate
contracts.
ii) Materials Department would be the convener for the
Tender Committee meetings.
8.01.2: Functions of the Tender Committee - The functions
of the Tender Committee will be as follows:
1. The scrutiny of the tenders will include a complete
technical & financial check of the specifications/samples,
rates and other terms and conditions of the tender. The
Tender Committee shall take note of the comments/
recommendations of Purchase Section, F&A and User
Departments during the course of scrutiny of tenders. On
the basis of above scrutiny, the Tender Committee will
recommend acceptance of the lowest acceptable tender.
2. The Tender Committee will examine, if it is necessary in
any particular case, the proposed deviations from the
stipulated conditions of the contract and recommend the
extent to which relaxation can be agreed. The Tender

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Committee will record, in its minutes, the recommendation

it chooses to make regarding the acceptance of tender
under such conditions as considered necessary.
3. While making the recommendations, the Tender
Committee will record, in detail, reasons for not accepting
the lower quotations. In respect of capital items, the
recommendations will also specify the existence or
otherwise of the budget provision and availability of funds.
4. The Tender Committee will function only as recommending
body and the final decision will rest, in accordance with
the relevant sub-delegation of powers, with the competent
authority concerned.
5. The Tender committee should give an undertaking
at the appropriate time (i.e. while recording final
recommendations) that none of them has any personal
interest in the Companies /Agencies participating in
the tender process. Any member having interest in any
company should refrain from participating in the Tender
Committee.
For the purpose of discharging the functions laid down above,
Tender Committee should meet as often as necessary to
expedite the disposal of business.
8.01.3: The lowest (among) technically acceptable tender
should normally be accepted. The financial status, capability
to manufacture & supply as per the specifications, their past
performance etc. shall be the factors to judge the reliability of
the tenderers.
Where the lowest or the next lower or all tenders are ignored,
detailed reasons for the same should be recorded. Orders
should normally be placed on the lowest technically acceptable
tenderer. However, even if one party is L-1, the aspect of
reasonability of rates including reasonability of packing and
forwarded charges quoted by them, should be looked into
considering the nature of the materials being purchased.
When open or limited tenders result in one effective offer only,
fresh tenders should be invited unless the rates are considered
reasonable or inviting fresh tenders would entail substantial
loss or inconvenience. Where it is considered that the rates
of the lowest tenderer are not reasonable, the tenders may be
rejected and fresh tenders invited.
8.01.4: Negotiations shall not be resorted to in case of open/

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limited tenders. If negotiations are considered necessary to be

resorted to, the guidelines of the Central Vigilance Commission
should be kept in view. The highest/lowest bidder (H-1/L-1),
for the purpose of negotiation shall be considered purely based
on Unit price (landed cost) irrespective of quantities quoted by
the tenderer. However, the quantities quoted corresponding to
the price offered must not be less than the minimum quantities
specified in the schedule of rates, if any. No clause on
negotiation may be incorporated in tender document/NIT. The
latest guidelines of CVC, issued vide letter No.005/CRD/012
dated 3rd March 2007 are as below:-
(i) As post tender negotiations could often be a source of
corruption, it is directed that there should be no post-
tender negotiations with L-1,except in certain exceptional
situations. Such exceptional situations would include,
procurement of proprietary items, items with limited
sources of supply and items where there is suspicion of
a cartel formation. The justification and details of such
negotiations should be duly recorded and documented
without any loss of time.
(ii) In cases where a decision is taken to go for re-tendering
due to the unreasonableness of the quoted rates, but the
requirements are urgent and a re-tender for the entire
requirement would delay the availability of the item, thus
jeopardizing the essential operations, maintenance and
safety, negotiations would be permitted with L-1 bidder(s)
for the supply of a bare minimum quantity. The balance
quantity should, however, be procured expeditiously through
a re-tender, following the normal tendering process.
(iii) Negotiations should not be allowed to be misused as a tool
for bargaining with L-1 with dubious intentions or lead
to delays in decision-making. Convincing reasons must
be recorded by the authority recommending negotiations.
Competent authority should exercise due diligence while
accepting a tender or ordering negotiations or calling for a
re-tender and a definite timeframe should be indicated so
that the time taken for according requisite approvals for
the entire process of award of tenders does not exceed one
month from the date of submission of recommendations.
In cases where the proposal is to be approved at higher
levels, a maximum of 15 days should be assigned for
clearance at each level. In no case should the overall
timeframe exceed the validity period of the tender and
it should be ensured that tenders are invariably finalized

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within their validity period.

(iv) As regards the splitting of quantities, some organizations
have expressed apprehension that pre-disclosing the
distribution of quantities in the bid document may not
be feasible, as the capacity of the L-1 firm may not be
known in advance. It may be stated that if, after due
processing, it is discovered that the quantity to be
ordered is far more than what L-1 alone is capable of
supplying and there was no prior decision to split the
quantities, then the quantity being finally ordered should
be distributed among the other bidders in a manner that
is fair, transparent and equitable. It is essentially in
cases where the organizations decide in advance to have
more than one source of supply (due to critical or vital
nature of the item) that the Commission insists on pre-
disclosing the ratio of splitting the supply in the tender
itself. This must be followed scrupulously.
(v) Counter-offers to L-1, in order to arrive at an acceptable
price, shall amount to negotiations. However, any counter-
offer thereafter to L-2, L-3, etc., (at the rates accepted by
L-1) in case of splitting of quantities, as pre-disclosed in
the tender, shall not be deemed to be a negotiation. It is
reiterated that in case L-1 backs-out, there should be a
retender.
9.00 TYPES AND GENERAL PRINCIPLES OF CONTRACTS:

9.01: Types of Contracts:
The contracts for supply of materials can be of the following
types:
i) Supply Contracts
Supply contracts are generally concluded for supply of a
specific type of materials whose delivery is to be made within
a specific time as indicated in the contract. The rates at which
the items shall be supplied are fixed during the tenure of the
contract and in certain cases may vary depending upon the
price variation clause agreed to and provided in the contract/
supply order.
ii) Rate Contracts
Rate Contract is a contract for the supply of materials on agreed
rates during the period covered by the Contract. Quantities
are not mentioned in the contract and the suppliers are bound

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to accept any supply/delivery order, which may be placed on

them, during the currency of the contract. Each delivery order
is placed in accordance with the stipulations mentioned in the
rate contract at the rates specified therein. Each delivery order,
placed in accordance with the stipulations mentioned in the
rates contract, shall form individual fixed time contract.
iii) Running Contract
The Running Contract is a contract concluded for supply of
specific quantity of materials (with the percentage variation in
contractual quantity either way) to be supplied within a specific
period of time. This contract distinctly differs from the above
two contracts in as much as the Supplier undertakes to supply
the materials as specified from time to time within the tenure
of the contract.
9.02: General Principles of Contract:
Contract is an agreement enforceable by law, for supply
of materials, acceptance of terms and conditions of tender/
purchase order and schedule of accepted rate, attached thereto,
shall constitute a contract. In preparing contract for supplies,
the following fundamental principles should be observed:
i) Whenever practicable and advantageous, order should be
placed only after inviting tenders.
ii) The terms of the purchase order must be precise and
there should not be any ambiguity or misconstruction of
any provision contained therein.
iii) If the time is the essence of the contract, the same should
be specifically stated to make the time factor legally
enforceable.
iv) Standard format of purchase order should be adopted
unless, in any particular case, a different format would be
more practicable and advantageous.
v) Every Purchase Order must provide penalties leviable
on the supplier in case of failure to affect the supplies,
as ordered, as also the right of the Company to procure
supplies from any other source at the risk and cost of the
supplier.
vi) The terms of payment should be on receipt of material of
the prescribed quality and quantity but, where advance
payment, in part or full, on proof of dispatch is inescapable,
submission of manufacturer’s test certificate, third party
inspection or inspection at the supplier’s work may be

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specified.
vii) Any extra charges payable, in addition to the basic rates,
should be clearly stated and so also for the components
and spare parts, comprising a complete unit of machinery
etc. Also, the details of the after-sales services to be
rendered by the suppliers should be specified.
viii) All rate and quantities as well as the amount may be
entered in figures. However, the total value of the order
shall invariably be indicated both in figures and words.
ix) The terms in the Purchase Order should be self-contained
so as to enable processing of the payments by reference
to the PO alone. Accordingly, instead of giving reference
to any earlier correspondence, the terms and conditions
mentioned in such letters should be incorporated in the
PO itself.
x) While entering into a long term contract for supplies,
provision should be made empowering the authority
placing the order to cancel the un-executed part
of the Order at any time after the expiry of the
specified period without assigning any reason for
such cancellation and without any compensation on
this account whatsoever.
xi) The terms of contract, once entered into, should normally
not be varied. If, in any circumstances, these are to
be varied, it should be in consultation with the Finance
Department and should be approved by the competent
authority.
xii) Purchase of Proprietary items from PSU: In case of
purchase of proprietary items from public sector units,
the Orders may be placed based upon the valid price list.
9.03: Price preference for earlier deliveries:
When a tender, other than the lowest, has been accepted in the
interest of earlier delivery order, the following clause should be
inserted in the Purchase Order:
“Notwithstanding that a bid lower than yours was submitted
at the price __________ (indicate the price), you have been
awarded this contract because of your offer of earlier delivery
date. It is accordingly stipulated that in the event of your
failure to deliver in full or part of the ordered materials, the
difference between your price and the lower price or the LD
whichever is more, shall be recovered without derogation

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of all other rights and remedies that we may have against

(You) for breach of contract. This shall apply to the delivered
quantity of the ordered material also, if due to non-delivery/
delayed delivery or part quantity, the earlier supplied quantity
cannot be put to the intended use. Such price reduction shall
in no way be deemed to confer any right on your part to any
extension of the agreed delivery date. The provision hereof
shall not apply to any delay in delivery which is excusable if
falling under standard force majeure provisions accepted intra
and internationally.
9.04: Liability for Transit Losses:
Apart from the terms of delivery viz. FOR dispatching station
or destination, the liability for transit losses whether it would
lie on the supplier or not, should be separately mentioned, in
both tender conditions and the contracts. Normally, the liability
for transit losses on the supplier or purchaser is governed by
the following principles:
i) In case of stipulated delivery at FOR Destination Station
for “Smalls” consignments the supplier is responsible
to tender the ordered quantity of materials and in good
condition to the Transporters’ Godown at the station
of destination. For truck load consignments, the FOR
destination should mean delivery at NFL Stores. Unless
otherwise specified in the tender, delivery can be said to
be complete only when the goods reach the destination in
full and in good condition. The supplier is, therefore, liable
in such cases for any loss or damage that may occur in
transit and should make good the same by replacement,
free of charge at destination or accept deduction from his
bill for the quantity lost or damaged in transit.
ii) In case of supplies against the orders stipulating delivery
FOR station of dispatch, the property passes to the
consignee as soon as the same is accepted by the carrier
for carriage. Thereafter, the supplier is normally not
responsible for any loss or damage to goods that may
occur enroute, if he has been able to book the goods in
a rail-worthy condition under a clear receipt without any
adverse remarks about the conditions of the goods or
their packing.
9.05: The Purchase Order would be issued in seven copies in the
format as at Annexure-V with distribution as under:
i) Original Copy - To Supplier

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ii) 2nd and 4th - To F & A Department

iii) 3rd Copy - To Purchase Section
iv) 5th & 6th copies - To Stores Section
v) 7th Copy - To the Indenting Department
10.00 AMENDMENT TO PURCHASE ORDERS

10.01: All subsequent changes desired in a Purchase Order shall be
issued through amendments in format at Annexure-VI.
10.02: Variation in value
No amendment needs to be issued for consumable stores if
the quantity supplied results in overall variation in value of the
order up to ± 5 % thereof.
10.03.1: Contracts with Price Variation Clause: Contracts
with price variation clause (including statutory levies/taxes
variation) may be processed for variation in the unit rates
in accordance with the stipulated formula with concurrence
of Finance Department under orders of the authority, which
approved the original order (However, Unit Head/ Corporate
Materials Head shall approve such amendments to orders
approved by CO i.e. orders approved by authority higher than
Unit Head), irrespective of the amount involved.
10.03.2: Amendments for reduction in the unit rates may be
issued under the orders of the authority, which approved the
original order for items not covered under 10.03.1.
However Unit Head/Corporate Materials Head can approve such
amendments for orders approved by CO i.e. orders approved
by authority higher than Unit Head.
10.04: Variation in quantities of any item
Variations up to +5% for each item would not require any formal
amendment if the item is of consumable nature. Variations
beyond this limit may be regularized through amendment with
concurrence of Finance and approval of the authority, which
approved the placement of original Order. If the revised value
exceeds his financial powers, approval from the next higher
competent authority would be required.
10.05: Variation in specifications of items
Such variations may be allowed by the authority, which approved
the original order, in consultation with the indenting department
and unless, it involves any financial implications, would not

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require concurrence from Finance. In such amendments, the

approving authority would, however, record that it does not
involve any financial implication. Other cases i.e. involving
financial implications would, however, require concurrence
from Finance Department. For the orders approved by C.O,
Unit Head shall approve any variation in specifications having
no financial implication.
10.06: Change of Name and/or address of the Supplier:
It should require approval of the same authority, which
approved the original order. However, orders approved by
C.O, this power shall be exercised by the Unit Head/ Head of
Materials at C.O.
10.07: Extension in Delivery Period
Cases for grant of extension in delivery period should be
analyzed carefully with special reference to the following
factors:
A) The rate in the Purchase order was not accepted against
other lower tenders in consideration of earlier date
delivery; and
B) The delay in delivery has not resulted in any loss/damage
10.07.1: Cases requiring grant of extension in delivery period,
in which both the conditions as in clause 10.07 above are
satisfied may be approved by the authority, which approved
the original order, provided the total extension involved is
not more than two months. Such extensions do not require
concurrence from Finance. In the copy endorsed to Finance
Department, the fact that approval of competent authority had
been taken, as both the conditions as per clause 10.07 above
have been met, shall be recorded.
10.07.2: Other cases for grant of extension in delivery period,
which are not covered by clause 10.07.1 above, would require
concurrence from Finance Department and approval from
authority, next higher to the approving authority of the original
order. GM/ED/D(T) can approve extension where the value of
the order is within his delegation of powers.
10.07.3: Purchase Orders with a specific agreed ‘Liquidated
Damages Clause would also be dealt with and approved in
accordance with the provision in the clause 10.07 above.
However, in the cases where delay does not exceed 15
days and the amount of liquidated damages is within Rs.
3,000, Head of Materials would be empowered to extend

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the delivery period without levy of liquidated damages

and without concurrence. However, reasons for waiving
the liquidated damages should be recorded by the Head of
Materials Department.
10.07.4: In case of delay in delivery against which liquidated
damages do not exceed an amount of Rs. 3,000, the Bills,
if negotiated through Bank, shall be retired by Finance
Department in consultation with Materials Department. In
such cases, liquidated damages up to a limit of Rs. 3,000
shall be ignored, if not recoverable from the amount due to
the supplier. Where the amount of liquidated damages is more
than Rs. 3,000/-Materials Department will inform the Finance
Department in writing regarding retiring of documents in case
the party has agreed for the recovery of liquidated damages or
shall issue amendment for extension of Delivery period/waiver
of Liquidated damages. However, no amendment letter shall be
necessary where the amount of liquidated damages is below
Rs.1500/-
10.07.5: In case of items of proprietary nature, involving
delay in delivery of not more than four months, extension in
delivery period, provided the condition mentioned in clause
10.07(b) above is satisfied, can be granted by the authority
which approved the original order.
10.08: Change in the mode of transport, when so warranted by
the circumstances, may be approved by Head of Materials
Department without concurrence of Finance on the basis
of need/justification given by the Indentor. However, air
freight shall be resorted to with the approval of Unit Head
and D (T) at Corporate Office, indicating the urgency for air
freight.
10.09: For contracts approved by Corporate Office, having provisions
for extension of validity of the contract and/or for increase/
decrease of ordered quantities (maximum by a specified
percentage), Unit Head can approve amendment for such
extension of validity of contract and/ or change in ordered
quantity in line with stipulated clauses.
11.00 PURCHASE FOR WHICH FINANCIAL CONCURRENCE NOT

REQUIRED:
11.01: Prior financial concurrence would be essential in all the cases
except the following:

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i) Purchase on the basis of Up to Rs. 10 Lakh

DGS&D rate
ii) Order on the basis of technically Up to Rs. 5 Lakh
accepted lowest tender when
tenders are invited and more
than one tender is received
iii) Purchase at Govt. controlled Up to Rs. 10 Lakh
rate without calling for tenders
iv) Acceptance of proprietary Up to Rs 10 Lakh.
items only
v) Repeat Orders Subject to the condition
as per Clause 13.01
vi) Purchases in any Emergency As per clause no.4.06.5(a)
Note:
1. On the copies of the Purchase Order, meant for Accounts
Department, suitable remarks will be endorsed regarding
the relevant clause of this procedure, under which the
order issued by the Materials Department.
2. No order for items of capital nature, irrespective of the
amount and/or not covered under Clause 11.01 will be
placed without financial concurrence.
12.00 POWERS TO APPROVE/PLACE/SIGN PURCHASE ORDERS:

12.01: The powers for approving Purchase Orders would be as under:
12.01(a): The powers for approving Purchase Orders without
financial concurrence would be as under:
Rs. in lakhs
Types of Purchase DGM/ CM(Matls)/ Mgr DM(Mtls.)/

Order HOD SM(Mtls.) (Mtls.) AM(Mtls.)
(Mtls.)
1. P.O without 5 3 1 0.50
financial
concurrence
where more than
one tender has
been received.

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2. P.O without 10 5 3 2
financial
concurrence
in respect of
proprietary,
canalized
DGS&D, RC
items.
3. P.O with financial AS PER D.O.P
concurrence
against emergent
indents (both
prop. & non-
prop items) i.e.
without inviting
quotations.
12.01(b): The powers for approving Purchase Orders with

financial concurrence would be as under:
Rs. in lakhs
Types of Purchase DGM/ CM(Matls)/ Mgr. DM(Mtls.)/

Order HOD Sr.M(Mtls.) (Mtls.) AM(Mtls.)
(Mtls.)
1. 1. P.O with AS 5 2 1
financial per
concurrence DOP
where more than
one tender has
been received.
2. P.O with financial AS 5 2 1

concurrence per
in respect of DOP
proprietary,
canalized
DGS&D, RC
items.
3. P.O with financial AS PER D.O.P

concurrence
against emergent
indents (both
prop. & non-
prop items) i.e.
without inviting
quotations.

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12.01(c): The powers for signing of Purchase Orders would

be as under:
Rs in lakhs
Type of DGM/ CM SM Mgr.(M)/ AM

Purchase Orders HOD (Matls) (Mtls.) DM(M)/ (Mtls.)
(Mtls.) Sr. / MO
AM(M)
P.O with Competent Full 20 10 3 1
Authority’s approval
andwith/without
financial concurrence
12.02: Purchase orders involving cash discount for early payment

as per stipulation in the order, would be stamped as “Cash
Discount” on top of P.O to ensure prompt attention at all levels
to avail the discount.
12.03: The Purchase Section shall exercise due care in agreeing to the
terms of payment.
Advance payments need to be discouraged except in exceptional
cases and hence, NITs should not contain any provision
for advance payments. Whenever payment of advance is
considered unavoidable, the same should be interest bearing
advance (@MCLR plus 1%) and be allowed only after getting
an acceptable unconditional Bank Guarantee for an equivalent
amount towards the advance payment and interest thereon
with sufficient validity so as to protect the Company’s interest.
Such bank guarantee should be from a Scheduled Bank
operating in India except Rural and Co-operative Banks. The
Bank Guarantees submitted by the Vendor/Supplier should be
verified from the concerned Bank by the Finance Department
before release of advance payment. Such Bank Guarantees
should be unconditional and without demur so that it can be
en-cashed merely on demand. Timely action for revalidation/
encashment of BG must be taken by F&A Department. In case
of default by the vendor, encashment within validity of bank
guarantee shall be based on recommendation of Materials
Department.
While evaluating the Technical/un-priced commercial bids,
if the parties demand advance payment, the same can be
accepted in exceptional cases on payment of interest and
submission of bank guarantee. Price bids should be opened
only after ensuring the above. There will not be any loading
of interest on these advances as the interest is being charged
separately. For “MOBILISATION ADVANCES” guidelines of

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CVC issued vide circular no. 4CC-1-CTE-2 dated 10-04-2007

(Annexure–XV) and its subsequent amendments (if any)
shall be strictly followed. 100% payment against dispatch of
documents through banks may be avoided as far as possible.
In cases where it is unavoidable, the credentials of the party
shall invariably be verified before agreeing to such terms of
payment. In case of suppliers who are not reputed or not
known for their fairness by earlier business dealings or with
whom there were earlier business dealings, advance payments
may not be agreed to.
12.04: The value for determining the Competent Authority shall be the
landed cost inclusive of all taxes (Sales Tax etc.), duties (Excise
Duty, Customs Duty etc.), freight etc. In case of imported items,
the value shall include CIF and Customs Duties also.
12.05: Waiver of L.D. Clause:
The Unit Head will be empowered to waive of L.D clause in
respect of Proprietary Items/Single Select Party/Single select
make. For other cases, Unit Head would consider the offers at
sole option of NFL with loading as per Clause 7.04.
13.00 REPEAT ORDERS:

13.01: Repeat Order can be placed if a material already purchased is
required again, but this will be subject to the following:
a) The repeat order is placed within 6 months of the date of
placement of original order if the value of the repeat order
is above Rs. 2 Lakh and up to Rs. 10 Lakh
b) The repeat order is placed within 12 months of the date of
placement of original order if the value of the repeat order
is less than Rs. 2 Lakh
c) The value of the repeat order does not exceed the value
of the original order.
d) It is possible to satisfy and is so certified by DGM (Matls)/
Chief Manager (Matls) / Sr.Mgr (Matls) / Mgr (Matls) that
there is no downward trend in the prices
e) The repeat order is being placed only once. Powers to
approve Repeat Orders shall be as per Clause 12.01 (a).
14.00 RECEIPT OF STORES/INSPECTION:

14.01: Unless otherwise specified in the Purchase Order, suppliers
must be instructed to consign all the materials to Stores as
follows:

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i) In case of wagon loads -NFL Siding

ii) In case of ‘Smalls’ through railway -Nearest Rly. Station
iii) In case of full truck load -NFL Store
iv) In case of ‘smalls’ through road -Transporter’ godown at
destination
Immediately on receipt of material, the Stores Section will
inform the indentor and Purchase Section, giving the date of
receipt.
14.02: All incoming consignments would be arranged to be cleared by
Stores Section at the earliest. Discrepancies, if noticed, would
be dealt in accordance with the procedure for lodging claims.
14.03:
Stores Section would arrange inspection of the material
most expeditiously. CM/Sr.Manager/Manager of Materials
Department would circulate separately a standing weekly
schedule for the indenting departments to depute their
representative to conduct inspection of all the consignments
received till that date on the scheduled day of a week. In this
manner, inspection would be possible within a week of receipt
of material in the Stores.
14.04: Cases, whose inspection is not completed within 15 days of the
receipt of the material, would be brought to the notice of Chief
Manager(Matls)/HOD by the Stores Section for Chief Manager
(Matls)/HOD to take up with the concerned department.
14.05: Final inspection of the materials will be carried out by the
authorized representative of the indenter and the Stores
Section. Any discrepancy noticed would be pursued by the
Stores Section with the suppliers /carrier / insurance, as
the case may be. Copies of such correspondences with the
suppliers will be endorsed to Purchase Section by the Stores
Section.
14.06: It should be possible to raise SRV in the format at Annexure-
VIII within 15 days of the receipt of the consignments. Stores
Section would send the SRV to Finance & Accounts Department,
on day to day basis.
14.07: The SRV must be carefully prepared by the Stores Section so
as to indicate complete details regarding:
a) Receipts of materials vis-à-vis stipulations in the Purchase
Orders.
b) Liability of the supplier i.e. deductions, if any, required to
be effected.

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c) Cross reference to claims lodged on the carriers /

underwriters, if any.
d) Payment of freight along with details of wharfage and/
or demurrage charged, indicating clearly whether the
recoveries are to be effected from suppliers/handling
contractors etc.
15.00 PAYMENTS
15.01: Finance & Accounts Department on receipt of the SRV from
the Stores, along with the relevant invoice of the supplier,
would ensure that the payment is released to the suppliers
most expeditiously and positively by the stipulated period as
per terms of Purchase Order.
15.02: Payment shall be preferably released by ECS (Electronic
Clearing System) or EFT (Electronic Fund Transfer), provided
facility for such payment system is available at NFL Units/
Plants. Vendors shall be asked to provide the requisite details
of their Account No., Name& Branch code of Bank, Acceptance/
request for release of payment by ECS/EFT, to the Finance and
Materials Department of concerned Unit/Plant of NFL.
15.03: If any supplier wants payment by way of transfer of funds to
their account, the supplier shall be asked to indicate the bank
account number accordingly to avail the facility. Such account
No. will be incorporated in all account Payee cheques.
15.04: In case payment by account payee Demand Draft is insisted by
supplier, the DD charges shall be deducted from the payment
due to the supplier and the DD shall be sent through courier/
speed post. To avoid misuse of DD during transit, parties shall
be advised to give their Bank Account No. & the same shall be
incorporated in all account payees’ Demand Drafts.
16.00 SAMPLES
As far as possible, samples shall not be asked for in the NIT,
as it leads to subjective evaluation. Indentor shall ensure that
specifications are complete or material is to be purchased is as
per BIS specifications. Samples received from the tenderers
along with or after the quotations shall be received by the
Purchase Section. These shall be forwarded to the Indentor,
wherever necessary, for his recommendations. The approved
samples shall be appropriately marked by the officer of indenting
department recommending the purchase, for preservation and
comparison of the supply. All the samples (except those which

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have been consumed in the process of trial) shall be returned

to the Purchase Section for disposal in the following manner:
a) The approved samples shall be sent to the Stores Section
for use at the time of inspection and later for stock
charging;
b) The returnable rejected samples shall be returned to the
tenderer through the Stores Section;
c) Samples having negligible value shall be disposed off
through the Stores Section.
Note:
The above procedure shall also be applicable to the samples
received directly by the Stores Section.
17.00 PURCHASE OF IMPORTED MATERIALS

17.01:
As per the existing practice for procurement of imported
materials, the Units will process the indents for the items to
be imported. The indents shall be approved by the competent
authority as per powers for Proprietary Items.
17.02: Emergent Indents up to a value of Rs. 2 Lakh shall be approved
by the DGM / GM (O&M) and up to Rs 5 Lakh by Unit Head and
D (T) at Corporate Office and above Rs. 5 Lakh by C&MD.
17.03: Indents of capital nature must have the concurrence of Finance
Department for proper budgetary control.
17.04: All LTEs for imported items shall be sent to by air mail only
and giving 4 weeks (minimum 3 weeks) time to the parties for
submission of offers.
17.05: Calculation of Landed Price for Foreign Bidders:-
To arrive at Landed prices of Foreign Bidders, FOB /FCA prices
shall be loaded as under:
Ocean freight @ 3.00 % of FOB value
Air Freight @ 5.00% of FCA Value
Marine Insurance @ 0.11% of FOB value
Port Handling Charges @ 1.00 % of CIF value
Custom duty @ Basic duty + Countervailing duty Educational
Cess+other applicable levies
17.06: Transportation of Over Dimensional consignment (ODC)
by Sea: The term ODC refers to consignment which is beyond

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standard measure i.e. where anyone dimension exceeds any

external container dimension of eight (8) feet wide or eight
(8) feet six (6) inches high but does not exceed the following
maximum dimensions:
Weight Length Width Height

20 to 100 MT 40 to 50 feet 11 feet 11 feet
These consignments include, inter alia, heavy machinery,
plant generator, turbines, furnace, rotor, chimneys and boilers
etc. Consignment with above weight and dimensions require
special handling equipment and are generally classified as
Over Dimensional Consignment.
For above consignment ocean freight may be taken @ 5% of
FOB value. This pre-determined 5% ocean freight for ODC
consignment is purely estimation for the purpose of evaluation
of bids only. The actual amount may however, vary to any
extent on other side depending on the value/ weight of the
consignment.
Transportation of ODC by Air: Dimensions and weight of the
package exceeding 10 feet pallet dimension i.e. 125 inches in
length, 88 inches in width, 63 inches in height and weighing
more than 3.5 tonne will be considered as ODC.
For above consignment Air freight may be taken as per the
rates offered by our air cargo handling agent.
Transportation of ODC by Road in India: For road transport
in India, packages exceeding one or more of the following
measurements:
Weight 9 tonnes, length 5.5 meter, width 2.12 meter, height 2.1
meter will be considered as Over Dimensional consignments.
For inland freight for ODC, efforts may be made to obtain
budgetary quotes. Based on the budgetary quote and the
estimated cost of procurement, the percentage of likely inland
freight may be evolved and these percentages may be specified
in the tender documents for loading of the offers for evaluation
of bids/ calculation of landed price. The actual amount of
inland freight may however, vary to any extent on either side
depending on prevailing market situations.
Transportation of Super ODC by Sea: Consignment that
has weight more than 100 MT and any one dimension over 50
feet long, more than 11 feet wide or over 11 feet high, requires
special handling equipment for loading abroad or discharging

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from a vessel because of that consignment’s a typical size

classified as Super IDC.
For ocean freight of super ODC consignments, efforts may be
made to obtain budgetary quotes from M/s. Balmer Lawrie
and M/s. Shiping Corp. of India. In case both the quotes are
available, average of the two may be taken for evaluation.
However, in case only one quote either from M/s. Balmer
Lawrie or M/s. Shipping Corp. of India is available then the
same shall be considered for incorporation in the NIT for
evaluation purpose. The actual amount of ocean freight may
also, however, vary to any extent on either side depending on
prevailing market situations.
Inland Transportation Charges: Inland transportation
charges for other than ODC/Super ODC cases shall be calculated
as per Clause No. 7.04 on CIF Price for Foreign Bidders.
Transit Insurance: The transit insurance shall be calculated
as per Clause No. 7.04. However, for calculating assessable
value of working out the custom duty amount transit insurance
has to be taken @0.11 % of FOB/FCA. This transit insurance
is however not to be considered while calculating landed cost.
Customs Duty/ other levies: As per the applicable rates.
However, if there is any revision in the project status or in rate
of Custom duty by GOI, the same shall be applicable. Offers
of Foreign Bidders shall be loaded with L/C charges wherever
applicable. However, forward cover charges on exchange
rate variation shall not be considered for evaluation, as it is a
contingency.
Inland Transportation Charges:
Inland transportation charges shall be calculated as per Sr. No.
7.04 above on CIF Price plus custom duties for Foreign Bidders.
Inland Insurance:
The inland insurance shall be calculated @ 0.15% of Ex Indian
port price (i.e. CIF Price plus custom duties) for Foreign Bidders.
17.07: Purchase Orders shall be processed as per applicable provisions
of clause 11.00 and 12.00.
17.08: Copies of Purchase Orders along with relevant documents
thereof shall be made available to Materials Department,
Corporate Office for arranging Customs clearance.
17.09: Letter of Credit, against import orders, shall be opened by the

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Finance Department, Corporate Office.

17.10: Clearance of consignments, dispatched by sea as well as air,
shall be looked after by the Materials Department, Corporate
Office.
i) All consignments coming by air shall be dispatched
to Delhi Airport and shall be cleared from Customs by
Materials Department, Corporate Office.
ii) All consignments, coming by sea, shall be dispatched to
Mumbai Seaport and will be cleared from Customs by
Materials Department, Corporate Office.
iii) Insurance premium:
As per the prevalent practice/rules of Custom Authorities while
working out assessable value of various import consignments,
Marine Insurance charges are loaded @1.125% unless the
documentary proof of actual incidence of lesser insurance
charges is submitted to them at the time of custom clearance.
In view of substantial savings involved in custom duties by
submitting documentary evidence (letter/certificate/premium
receipt issued by Underwriter) of actual payment of lesser
insurance charges for imported consignments, Materials
Department. of Units may ensure that a copy of such
documentary evidence is forwarded to Materials Department,
Corporate Office, Noida. as soon as dispatch particulars are
received/insurance is arranged so that the same can be
submitted to Custom Authorities and benefit of loading of
actual lower insurance charges can be availed while calculating
assessable value/custom duty.
18.00 INTEGRITY PACT:

For all tenders/ Contracts/ Long term Agreements (LTAs)
valuing Rs. 1 crore and above, the tenderer(s) / bidder(s)/
contractor(s) has to enter into an “Integrity Pact” with NFL. A
copy of the Integrity Pact typed on plain paper duly signed by
the tender issuing officer who is the authorized signatory on
behalf of NFL, has to be enclosed with the tender document.
In case of uploading the tender in the website, Integrity Pact
also has to be necessarily uploaded after scanning the signed
copy of the pact.
Non-signing of the Integrity Pact will disqualify the offer/ bid.
However, bidders may be given an opportunity to sign the
Integrity Pact before rejection of the bid.

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Following instructions shall be included in the tender documents,

valuing Rs 1 crore and above:
The Bidder(s) / Contractor(s) is required to enter into an
“Integrity Pact” with the Principal i.e. NFL. The Integrity Pact
has to be signed by the Proprietor / Owner/ Partner/ Director or
by their duly Authorised Signatory. In case of failure to return
the Integrity Pact along with the offer/ bid, duly signed by the
authority as mentioned above, will disqualify the offer/ bid.
19.00 EXPRESSION OF INTEREST:

Expression of Interest may be adopted in the following cases
where in the first instance, it is not possible to proceed with
tendering. No Indent may be required for issuing an EOI.
i) Cases where new technology is involved and details are
not fully known.
ii) Where the tender specifications/ commercial terms are
required to be finalized in consultation with the prospective
bidders by calling bidder’s conference after receipt of the
prequalification bid. During the technical discussions
other stake holders who can add value to the decision
making on technical aspects and evaluation criteria may
also be involved.
iii) When prospective bidders are not known and have to be
identified.
Based on the response received in the EOI tender document
(Indent) may be prepared and processed accordingly.
20.00 PRE-BID DISCUSSIONS:

In technically complex Projects cases, pre-bid discussions
after floating tender and before submission of bids may be
held. The date, time and place of pre-bid discussions should
be clearly mentioned in the tender document. During pre-bid
discussions all the queries of the potential bidders must be
properly clarified and recorded.
If any change in the specification, terms and conditions in the
original tender is contemplated as a result of pre-bid discussions,
the same should be broad based and have the approval of the
competent authority accordingly, a corrigendum to the original
tender is to be issued on tender website.
Submission of the bids shall be allowed only after pre-bid
discussions or after issue of corrigendum wherever necessary.

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The date after which submissions of bids shall be allowed

should be mentioned in the tender itself or in the corrigendum
if such corrigendum is issued after pre-bid discussions. The
copy of corrigendum may also be sent to all bidders who had
participated in the pre-bid discussions. Sufficient time (at
least 7 days) may be given between pre-bid discussions and
submission of tenders.
21.00 GENERAL
21.01: All pre-indent activities will be conducted by indenting
department.
21.02: In case of medicines, chemicals and other items having limited
shelf life, the left over shelf life of each item at the time of
delivery should be at least 80%.
21.03: All the correspondence in respect of clarifications/ confirmations,
whether it be technical or commercial shall be dealt through
Matls. Dept. till the final placement of order. Thereafter, while
routine follow up may be done by the executing agency under
intimation to Matls. Dept., all the matters having financial/
commercial implications will still be dealt with by Matls Dept.
only.
21.04: If items under purchase are the matching/ complimentary
parts to be supplied by single party or items of work in the
job contract to be performed by single contractor, it should be
clearly specified in the tender document that total price of all
such items/ items of work shall be evaluated for determining
the reasonableness of the price.
21.05: Where for any reason the due date and / or time of opening the
tenders is extended, the concerned Executive shall intimate all
the firms to whom the tender papers had been sent irrespective
of the number of quotations already received, the revised
tender opening date and time. However, in case any of parties,
who have submitted offer earlier, submits revised offer, within
extended period, their revised offer only will be considered for
opening.
21.06: PURCHASE PROPOSAL:
In case the order is to be placed on more than one tenderer as
specified in Tender Document, then the tenderers will be asked
to match their prices with L-1 rate for distribution of the items/
jobs to be ordered. Only the tenderers, who agree to match
their prices with L-1 rate, will be considered for the distribution
of order.

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Besides giving preferential treatment to MSEs in terms of,

exemption of EMD and fee for tender document, purchase
preference is also to be given to MSE as per extant guideline of
Government of India.
21.07: In case a party is selected to supply material/execute a
job contract at a higher price against a subsequent tender,
but whose supply of the material/ execution of job contract
against the earlier order at lesser price is not yet complete
for reasons attributable to the supplier/ contractor, it will
be ensured that the supplies are made/jobs executed first
against the earlier order before being considered against the
subsequent order.
21.08: Before any legal proceedings, arising out of a contract are
entered upon, the sanction of Unit Head acting in consultation
with his legal and financial advisers should be obtained. Where
the terms of contract expressly admit any waiver, such right
may be exercised only by the authority designated, and for
adequate reasons which should be placed on record. In the
absence of such provisions, non enforcement of a condition of
contract constitutes a ‘variation’ thereof and should be dealt
with, as required.
21.09: Arbitration:
The contract shall be governed by and construed in accordance
with the laws of India.
Except where otherwise provided in the contract all matters,
questions, disputes or differences whatsoever, which shall
at any time arise between the parties hereto, touching the
construction, meaning , operation or effect of the contract,
or out the matters relating to the contract or breach thereof,
or the respective rights or liabilities of the parties, whether
during or after completion of works or whether before or
after termination shall after written notice by either party
to the contract to be referred to Designated Unit Head /
E.D. / Functional Director / Chairman & Managing Director,
National Fertilizers Limited for appointment of Arbitrator.
(Appropriate designated authority may be inserted as per
contract value)
The Arbitration proceeding shall be governed by the Arbitration
& Conciliation Act. 1996, The Arbitration & Conciliation
(Amendment Act 2015) or any further statutory modification
or re-enactment thereof and the rules made there under.
If the arbitrator, to whom matter is referred, vacates his /

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her office by any reason whatsoever then the next arbitrator

so appointed by the authority referred above may start the
proceedings from where his predecessor left or at any such
stage he may deem fit.
The following clause shall continue to be incorporated in
all the contracts irrespective of contract value:
It is agreed by and between the parties that in case a reference
is made to the Arbitrator or the Arbitral Tribunal for the
purpose of resolving the disputes / differences arising out of
the contract by and between the parties hereto, the Arbitrator
or the Arbitral Tribunal shall not award interest on the awarded
amount more than the rate of SBI MCLR / Base rate applicable
to NFL on the date of award of contract.
Arbitration for Foreign Vendors/Parties:
Arbitration provision in accordance with the rules of International
Chamber of Commerce (ICC) Will be applicable which may be
as under:-
“All disputes arising out of or in connection with the present
contract shall be finally settled under the Rules of Arbitration
of the International Chamber of Commerce, India by one
or more arbitration appointed in accordance with the said
Rules”.
Arbitration for PSEs and Government Department:-
In case of Contract with other PSEs / Government Department
as described in circular NFL /LAW/64 dated 17.03.2016 the
arbitration shall be through PMA, DPE. For ready reference,
The Arbitration Clause in that case shall be as follows:-
“In the event of any disputes or difference relating to the
interpretation and application of the provision of the contracts,
Such disputes or difference shall be referred by either party
for Arbitration to the sole Arbitration 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 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

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Secretary or the Special Secretary/ Additional Secretary,

When so authorized by the Law Secretary, whose decision
shall bind the Parties finally and conclusively. The Parties to
the disputes will share the cost arbitration as intimated by
the Arbitrator”.
22.00
CANCELLATION OF PURCHASE/ CONTRACT AND RISK
PURCHASE
22.1: For Risk Purchase action after issue of notice to the defaulting
party a tender enquiry will be issued excluding the defaulting
party for finalization of order on alternate source. Preferably
the date of tender opening of the alternative tender enquiry
and the expiry of risk purchase notice to the defaulting party
should be about the same time. Notice should be given to
the defaulting party with a view to provide it with last chance
to effect supply and as such its response should be taken
into account before deciding on the cancellation or alternate
procurement through risk purchase.
22.2: After expiry of notice period and on finalization of the alternate
purchase order/ left over quantity in the original purchase
order should be cancelled at the risk and cost of defaulting
party and new order should be placed.
22.3: The Risk Purchase Order should as far as possible be on the same
terms and conditions as the original PO (apart from delivery
time), i.e. the goods should be of the same specifications, etc.
22.4: It should be ensured that Risk PO is concluded within a
reasonable time.

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ANNEXURE - I
NATIONAL FERTILIZERS LIMITED
……………………………………………… Unit
Purchase Indent
Department………………………………… Indent No…………………………………………
Dept. Ref. No……………………………… Indent Date………………………………………
Date…………………………………………… Type of items : RST/ ST/ IST/ Capital
Delivery……………………………………… Mode of Transport……………………………
…………………………………………………………………………………………………………………
Required for: ……………………………………………………
Sr. Item Description Unit Qty. Estim- Re- Re- Safety Pres- Last Pending
No Code Reqd. ated Order Order Stock ent 12 P.O.&.
Value Level Qty. Stock months indent
Consum
ption
Signature Signature & Designation Concurred by Finance
(For Capital Items only)
Indenting Officer Approving Authority

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ANNEXURE - II
Categories of Stores
1. Abrasives
2. Battery
3. Building Materials (Sand, stone, bricks, asphalt)
4. Building materials finished (asbestos, steel sheet etc.)
5. Casting and forgings
6. Communications (telephone, signaling, radio etc.)
7. Conductors, cables and wires
8. Container
9. Control Equipment (Elect.) Switches etc.
10. Conveyors
11. Crushes Pulveizers and Mixers
12. Door fittings
13. Drawing office material
14. Drivers
15. Earth Moving Equipments
16. Fastener (Bolts, Rivets, Screws, Washers etc.)
17. Fitters and cleaning equipment
18. Firefighting equipment
19. Foundary equipment
20. Furniture & Office equipment
21. Garage tools
22. Gaskets & Packing (gland & jointing)
23. Generators and motors
24. Glasses of all type (sheets, plates, safety etc.)
25. Hand tools including electric & pneumatic
26. Hardware Miscellaneous
27. Heavy Chemicals
28. Hoists and elevators
29. Horticulture & Agriculture Stores and equipments

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30. Hose & Hose fittings

31. IC & Steam Engines
32. Instruments & Gauges
33. Insulating Materials (Heat, Sounds and Elect.)
34. Laboratory Stores & Apparatus
35. Leather Goods
36. Lighting
37. Machine Tools etc.
38. Medicines and medical equipments
39. Metals
40. Packing Material, branding pads etc.
41. Paints and Varnishers
42. Petroleum products (oil and lubricants & road dressing material)
43. Photo & Sound equipments
44. Pipes and pipe fittings
45. Plastics
46. Pumps and Compressors
47. Quarry equipments
48. Raw material, etc.
49. Refractory
50. Research
51. Road making and civil construction machinery
52. Ropes (Steel, manila, cotton and fittings & Chains)
53. Rubber Goods
54. Safety equipments
55. Sanitary
56. Stationery forms, labels, charts, books etc.
57. Steel (structural, rounds, sheets, plates, rails etc.)
58. Steel fabricated structures (tanks, vessels etc.)
59. Survey instruments and materials
60. Tents

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61. Timber
62. Transformers, capacitors and reactors
63. Transportation (Machinery and Stores)
64. Uniforms
65. Valves (Water, Air, Steam and Gases etc.)
66. Ventilation (Air conditioning and Refrigeration)
67. Welding
68. Wire Netting, Expanded Metal, Screws etc.
69. Miscellaneous
NOTE: Additions and alterations may be made as per needs of the

Unit.

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ANNEXURE - III
…………………………………… Unit
Phone:
FAX:
E-Mail:
Sub: Notice Inviting Tender (Single Part Bidding)
Our NIT Ref No.…………………………………………. Date: ………………………

M/s……………………………………………………………
………………………………………………………………….
……………………………………………………………………
Dear Sir,
Sealed tenders on your letter head are invited by the undersigned for
the supply of items as mentioned in the attached schedule/given below:
1. Each tender should be sent in duplicate cover. Both the covers
should be sealed with distinctive seal and super scribed with
Tender No.___________ due on _________. The outer cover
should contain Bank Draft/Bank Guarantee for earnest money
wherever required and the inner cover should contain the price
quotation/schedule of rates. Two or more quotations should not
be sent in one cover and the quotation against each tender should
be sent separately.
For tenders received in unsealed/stapled/open condition or
without superscription, resulting in opening of tender before due
date, the risk and responsibility of losing confidentiality shall rest
with the tenderer.
2. The rates should be quoted in the Measurement Units given in
the enquiry only i.e. Nos./Kgs/MT/Meters/liters/KL etc. Rates
should be firm for a period of 90 days from the date of opening
of the tender and should be on FOR/FOT________(name of place
of dispatch/destination) excluding insurance. The rates should
be exclusive of transit insurance from your warehouse to our
warehouse. The goods shall be covered under NFL’s Open Marine
Policy. The rates should be quoted both in figures and words.
3. Your Sales Tax/VAT Registration No. and Permanent Account No.
(allotted by Income Tax Department) should be mentioned in the
quotation positively.

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4. The tender should reach this office on or before………..p.m. on

……… The tenders will be opened at………p.m. on the same date
in the presence of such of those tenderers who may like to be
present. Quotations will be considered subject to the terms and
conditions given on reverse.
5. The tenderer shall deposit a sum of Rs____________(Rues__
________________________________________________
__________only) by demand draft payable to Manager (F&A),
National Fertilizers Limited or Bank Guarantee from a scheduled
Bank operating in India except Rural and Cooperative Banks,
towards Earnest Money which shall be refunded as expeditiously
as possible in case the tender is not accepted. No interest is
payable on such deposit. Tenders without earnest money shall be
rejected.
6. Whenever the bidder is silent about the acceptance of NIT
conditions such as bank guarantee, warranty period, liquidated
damages etc, it shall be presumed that the bidder has accepted
NIT conditions and no further correspondence seeking specific
confirmation about acceptance of these conditions shall be made.
7. In case you are registered as MICRO, SMALL or MEDIUM Enterprise
under ‘The Micro, Small & Medium Enterprise Development Act,
2006 (MSMED Act)’ promulgated by Government of India vide
Notification dated 16/06/2006, please indicate the relevant
category in your offer and also enclose a copy of the certificate
issued by the concerned authorities.
8. In case a tenderer is not interested to quote, a regret letter
giving reasons for the same must be sent to us. In case any
tenderer regularly abstains from submitting quotation, we may
be constrained to delist the tenderer from our vendor list.
Sr. No. Description Qty Unit Delivery Reqd.
Thanking you,
Yours faithfully
For & on behalf of

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Terms & Conditions of Notice Inviting Tender
1. a) the prices should be FOR/FOT………….. by Road Transport

approved by bankers. In case the material constitutes
wagon load, the prices should be FOR NFL siding served by
…………..Railway Station.
b) The price quoted shall be exclusive of all taxes and duties as
may be applicable presently or imposed by Government of
India from time to time.
c) The bidder shall indicate the rates of GST applicable in their
bid, for the quoted items indicating clearly the HSN code of
item / SAC Code in case of service and applicable category
of GST (i.e. whether IGST, CGST, SGST, UGST).
d) For dispatches effected from 01.07.2017 (date of
implementation of GST), the bidder / supplier shall provide
a proper invoice in the form and manner prescribed under
relevant section of GST Act.
e) Bidder / Supplier shall have valid GSTIN / GST, Provisional
ID and provide Invoice and all other documentation (such
as E Way bill, transportation copy of invoice, etc.) in such
form and manner as may be prescribed under the GST Act
and Rules which are inter-alia necessary to enable NFL to
claim input tax credit set off, rebate or refund in relations to
payment of GST.
2. If for any reason, prices tendered are for delivery FOR forwarding
station, the freight charges together with the gross weight of the
material should be clearly mentioned in the quotation. In case
the rates quoted are ex-go down/ex-factory, the packing and
forwarding charges, if leviable, may be specifically indicated.
3. If the weight of the material permits dispatch by post parcel/
courier, this may clearly be stated in the quotations.
4. Our standard terms of payment are within 30 days of the receipt
of the material in good condition.
5. Complete specifications of the Stores offered together with
manufacturer’s name brand, etc., of each of the item must be
given in the quotations and descriptive literature and samples
(wherever necessary or required) should be sent along with the
quotations.
6. Price and delivery quoted by you must be firm and valid for a
minimum period of 90 days from the due date of opening of
quotation.

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7. The tenderer shall quote the price strictly as per the proforma
enclosed for schedule of prices. Parties should quote one rate
for specific quantity quoted by them. Tenders with quotation of
different rate for different quantities shall be rejected without any
further reference.
8. It shall be obligatory on the part of suppliers to adhere strictly
to the deliveries quoted and accepted by us in our orders. In
case of delay in supplies, unless extension of delivery has been
granted by us on application by the suppliers, we may at our
option either (i) recover liquidated damages from supplier at a
sum equal to ½% per week or part thereof of the value of stores
not delivered subject to a maximum of 5% of the value of the
order, or (ii) purchase elsewhere on account and at the risk and
cost of the suppliers the stores not delivered or(iii)cancel the
contract without prejudice to our rights under (i) & (ii) above.
9. Quotations must be legible, clear and free from overwriting/
erosions. You should sign on all cuttings/over writings. Incomplete
quotations are liable to be summarily rejected.
10. We reserve the right to accept or reject any quotation in full or
in part without assigning any reason thereof. We also reserve the
right to split and place order on more than one supplier.
11. NFL will have the right to issue addendum to tender documents
to clarify, amend, modify, supplement or delete any of the
conditions, clauses or items stated. Addendum so issued will
form part of original invitation to tender.
12. NFL reserves the right to postpone the tender opening date and/
or time and will intimate all the tenderers well in time, of such
postponement along with notice of revised opening date and
time.
13. One person will be allowed to represent only one company during
discussions/negotiations with NFL. If same person is representing
different companies with authorization letter from more than one
company, such person will be allowed to represent only the first
company called for negotiations.
14. Bidders may ensure that tender documents/offer has been
signed by appropriate/authorized representative of the Company.
Withdrawal of offer/non acceptance of orders placed based on
offers submitted by bidder’s on their letter head; will not be
allowed on the grounds that offer was not signed by authorized
person.
15.
The prospective tenderers having any common partners/

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Directors/ Managing partners, etc. or having any other common

criteria shall be considered as Sister/Group/Associates company.
In such cases, only one of them will be eligible for participating in
the tender.
16. In case, due to some unforeseen circumstances, the date of
receiving/opening of the tender happens to be a holiday/closed
day, the tender will be received and opened on the next working
day.
17. If a tenderer resorts to any frivolous, malicious or baseless
complaints / allegations with an intent to hamper or delay the
tendering process or resorts to canvassing/ rigging/ influencing
the tendering process, NFL reserves the right to debar such
tenderer from participation in the present / future tenders up to
a period of 2 years.
18. It shall be certified by the tenderer that none of the NFL employee
is related to owners/directors. (In case any relative is working in
NFL, furnish details separately).It shall also be certified by the
tenderer that none of NFL’s ex-employee is employed with them.
(In case any ex-employee of NFL is employed, furnish details
separately).It shall be certified by the tenderer that none of blood
relation of the owners/directors is participating in this tender in
the name of other firm.
19. Subsequent to an order being placed against your quotation,
received in response to this ‘enquiry’, if it is found that the
materials supplied are not of the right quality or not in accordance
with our specifications (required by us) or received in damaged or
broken conditions, not satisfactory owing to any reason of which
we shall be the sole judge, we shall be entitled to reject the
materials, cancel the contract and buy our requirement from the
open market/other sources and recover the loss, if any, from the
supplier reserving to ourselves the right to forfeit the security
deposit, furnished by the supplier against the contract. The
supplier will make his own arrangements to remove the rejected
materials within a fortnight of instruction to do so. Thereafter,
materials will lie entirely at the supplier’s risk and responsibility
and storage charges, along with any other charges applicable,
will be recoverable from the supplier.
20. FORCE MAJEURE:
Neither party will be liable for any claim on account of any loss,
damage or compensation, whatsoever, arising out of any failure
to carry out the terms of this contract, where such failure is
caused due to war, rebellion, mutiny, civil commotion, fire, riots,
earthquake, drought, flood crop failure, or Act of God or due to

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any restraint or regulation of the State or Central Government or

a local authority/authorities, provided a notice of such occurrence
is given to the other party in writing within 10 days from the date
of occurrence of the force majeure condition, furnishing therewith
a documentary evidence supporting the invoking of the force
majeure clause. On cessation of the force majeure, the party
invoking force majeure will inform the other party of the period
for which the force majeure condition continued and will also give
documentary evidence there of this effect
21. In all cases of disputes, the decision of National Fertilizers
Limited shall be final. Failing this, the matter will be referred to
the Arbitration in accordance with the Indian Arbitration Act and
amendments thereof.
22. Arbitration:
The contract shall be governed by and construed in accordance
with the laws of India.
questions, disputes or differences whatsoever, which shall at any
time arise between the parties hereto, touching the construction,
meaning , operation or effect of the contract, or out the matters
relating to the contract or breach thereof, or the respective rights or
liabilities of the parties, whether during or after completion of works
or whether before or after termination shall after written notice by
either party to the contract to be referred to Designated Unit Head /
E.D. / Functional Director / Chairman & Managing Director, National
Fertilizers Limited for appointment of Arbitrator. (Appropriate
designated authority may be inserted as per contract value)
The Arbitration proceeding shall be governed by the Arbitration &
Conciliation Act. 1996, The Arbitration & Conciliation (Amendment
Act 2015) or any further statutory modification or re-enactment
thereof and the rules made there under.
If the arbitrator, to whom matter is referred, vacates his / her office
by any reason whatsoever then the next arbitrator so appointed
by the authority referred above may start the proceedings from
where his predecessor left or at any such stage he may deem fit.
is made to the Arbitrator or the Arbitral Tribunal for the purpose
of resolving the disputes / differences arising out of the contract
by and between the parties hereto, the Arbitrator or the Arbitral
Tribunal shall not award interest on the awarded amount more

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than the rate of SBI MCLR / Base rate applicable to NFL on the
date of award of contract.
Chamber of Commerce (ICC) Will be applicable which may be as
under:-
contract shall be finally settled under the Rules of Arbitration of
the International Chamber of Commerce, India by one or more
arbitration appointed in accordance with the said Rules”.
arbitration shall be through PMA, DPE. For ready reference, The
Arbitration Clause in that case shall be as follows:-
Such disputes or difference shall be referred by either party for
Arbitration to the sole Arbitration 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 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 authorized by the Law Secretary, whose
decision shall bind the Parties finally and conclusively. The Parties
to the disputes will share the cost arbitration as intimated by the
Arbitrator”.
23. JURISDICTION:
All actions at law or suits arising out of or in connection with
this contract or the subject matter thereof will be instituted
in _________court in _____________district in the State
of___________________.

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ANNEXURE - IV
Bank Guarantee for Security Deposit Format
(To be prepared on Stamp paper issued in the name of Bank)
This BANK GUARANTEE No. _____________________________

made this day of ____________________________between
________________________________________________
_____ a bank incorporated and having its registered office at
______________________________ (hereinafter called BANK)
which expression shall unless repugnant to the context or contrary to
the meaning thereof include its successors and assigns on the one part
and NATIONAL FERTILIZERS LIMITED, a Company registered in India
under Companies Act, 1956 and having its registered office at Core -
III, Scope Complex, 7, Institutional Area, Lodhi Road, New Delhi - 110
003, India to the context or contrary to the meaning thereof include
its successors and assigns on the other part.
WHEREAS in pursuance to the agreement dated
____________________(hereinafter called CONTRACT) entered into
between National Fertilizers Limited (hereinafter called OWNER and
__________________________________________ a Company
incorporated in _______________________ (hereinafter called
CONTRACTOR) which expression shall unless repugnant to the context
or contrary to the meaning thereof include its successors and assigns,
for supply of ___________________________________________
________________ __________________________ as envisaged
in the Contract, Contractor has to submit a SECURITY DEPOSIT for
Rs._________.
CONTRACTOR accordingly agrees to furnish the Bank Guarantee
for Security Deposit as hereinafter contained towards fulfillment of all
of its obligations under the contract.
NOW THIS DEED WITNESSES AS FOLLOWS:
1. In pursuance of the Contract, the Bank hereby guarantees as
a direct responsibility to OWNER that the BANK is holding the
amount of Rs.______________________________________at
Owner’s disposal and hereby promises and shall be bound to pay
to OWNER, forthwith at Owner’s written notice stating that the
contractor has failed to fulfill its obligations under the contract
for reasons for which contractor is liable and without any protest
or demur and without recourse to contractor and without asking
for any reasons as to whether the amount if lawfully asked for
by Owner or not, the entire amount or the portion thereof as
mentioned by Owner in the notice.

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The decision of the Owner as to whether the terms and conditions

of this BANK GUARANTEE FOR SECURITY DEPOSIT have been
observed or not shall be final and binding on the BANK. In
any case, however the Bank’s responsibility under this BANK
GUARANTEE FOR SECURITY DEPOSIT is limited to Rs. ________
___________________________________________________
2. This BANK GUARANTEE FOR SECURITY DEPOSIT shall be valid
for an initial period of _______________________ months from
the date of this Bank Guarantee No. ___________________
dated ______________ given by the Bank to Owner become
effective. Upon issuance of Commissioning / Erection /
Completion certificate according to terms of contract on expiry
of _________________ months after the issuance of the above
mentioned certificate of commissioning / erection / completion
certificate, the BANK GUARANTEE FOR SECURITY DEPOSIT shall
become null and void.
3. This BANK GUARANTEE FOR SECURITY DEPOSIT shall be
in addition to and shall not affect or be affected by any other
security now or hereafter held by Owner on account of money
hereby intended to secure and Owner at its discretion and without
any further consent from the Bank, and without affecting its
rights against the Bank, may compound with, give time or other
indulgence to or make any other arrangement with Contractor
and nothing done or omitted to be done by Owner in pursuance
of any authority or permission contained in this guarantee shall
effect discharge of the liability of the Bank.
4. UNLESS PREVIOUSLY CANCELLED BY THE OWNER, this Bank
Guarantee for Security Deposit will remain in force initially up to
__________________ months from the effective date of Bank
Guarantee No. ________________ dated ____________ given
by the Bank to the Owner and subject to provisions of paragraph
2 above will stand automatically cancelled on the expiry of the
said period. Unless demand or claim under this Bank Guarantee
is made on Bank in writing within three months from the date of
expiry of this Bank Guarantee, all the rights of Owner against the
Bank shall be forfeited and Bank shall be relieved and discharged
from all the liabilities hereunder.
5. Any notice by way of request, demand or otherwise hereunder
may be sent by post to the Bank, addressed as aforesaid, and
if sent by post, it shall be deemed to have been given at the
time when it would be delivered in due course of post, and in
proving such notice, when given by post, it shall be sufficient to
prove that the envelope containing the notice was posted and a

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certificate, signed by an officer of the owners, to the effect that

the envelope was so posted, shall be conclusive.
6. The BANK GUARANTEE FOR SECURITY DEPOSIT is to be returned
to the Bank after its expiry in terms of Paragraph 4 above.
7. The Bank declares that it has the power to issue this guarantee
and the undersigned have full power to do so.
Dated ___________ this ________________ day of _____________.
(Indicate the name of the Bank with stamp)

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ANNEXURE - V
(A Government of India Undertaking)
(An ISO –9002 & ISO – 14001Unit)
--------------------------------- Unit
-------------------------------------
-------------------------------------
INDIA
Our CST no.:-------------- Materials Department:

Our TIN NO.:---------------------- Fax# (91) ----------------------------
ST NO.:---------------------------- Tel# (91) ----------------------------
ECC NO.:-------------------------- E-mail: -------------------------------
Website:www.nationalfertilizers.com
By Speed Post/ Registered Post

PURCHASE ORDER
PO NO: -------------------------------
Dated: ----------------------------------
M/S. ----------------------------------------
-----------------------------------------------
-----------------------------------------------
SUB: Purchase Order for --------------------------------------------
REF: Our Enquiry No. ---------------------- dated --------------------

Your Offer No. ----------------------- dated ----------------------
Our/your e-mail message No. ---------------dated --------------
Our/your fax message No. ----------------- dated --------------
Dear Sir,
With reference to your above quotation and subsequent correspondence,

we are pleased to place with you Order for the supply of ---------------
---------------------------------------------------------------------- as per
details of specification, quantity, rates and terms and conditions given
below and overleaf:

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01. Scope of Supply
Description Unit Quantity Unit Rate Amount (Rs.)
TOTAL Rs.
(Rupees ---------------------------------------------------------
--------------------------------------------------- only)
02. Price Basis : F.O.R. -------------------------------------
03. Excise Duty : ---------------------------------------------
04. Packing & Forwarding Charges: ------------------------------
05. Sales Tax/VAT : ---------------------------------------------
06. Payment Terms : ----------------------------------------------
07. Mode of Dispatch : ----------------------------------------------
08. Insurance : ------------------------
09. Bank Charges : -----------------------------
10. Delivery : --------------------------------
Note: Terms and conditions specifically mentioned above shall prevail

upon those printed overleaf.
For and on behalf of

CHIEF MANAGER-MATERIALS
ACKNOWLEDGEMENT
RECEIVED FOR EXECUTION
Signature:
Name & Designation
(SEAL)

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General Terms & Conditions of Purchasse Order and instructions

to Suppliers
This order is subject to conditions given in the Notice Inviting
Tender, and also the following:
1. PACKING : While dispatching Stores ordered, it will be the
responsibility of the supplier to sufficiently and properly pack the
consignment so as to enable its delivery at destination free from loss,
damage or pilferage. Each packing must contain a list of Stores packed
therein.
2. MARKING : Each packing/bundle must be prominently marked
with Order No. and packing No.
3. CONSIGNEE : All goods shall be consigned to Manager
(Materials) Stores, National Fertilizers Limited………….Any expenditure
and or demurrage incurred in respect or wrong consignment of goods
by rail/road, as the case may be, shall be recovered from the supplier.
4. DISPATCH DOCUMENTS : An advice note quoting the Order No.
shall accompany each consignment. A duplicate advice note along with
Railway or Motor receipt must sent to the consignee by Speed Post/
Regd. Post acknowledgement due, sufficiently in advance, so that the
same reaches the consignee before the arrival of Stores at destination.
Any demurrage incurred on account of late or non-receipt of dispatch
documents will be recovered from supplier. All RRs/GRs must be in the
name of National Fertilizers Limited and only where specifically agreed
the same can be consigned to self.
5. INVOICE : In case where documents are not routed through
Bank, original copy of invoice may be directly sent to Chief Manager
(F&A), National Fertilizers Limited, ………. immediately after dispatch
with copies to Purchase and Stores Department. All invoices must bear
the Purchase Order No. with date and should also indicate the dispatch
particulars. It may be noted that the documents will be retired only
if the dispatches are made as per mode indicated in the Purchase
Order. Where payment is made by installments, separate invoices are
required by each instalment on each consignment.
6. INSURANCE : The insurance will be arranged by National
Fertilizers Limited unless it has been specifically stated in the Purchase
Order that the same shall be arranged by the Supplier.
7. REJECTION : If the goods dispatched against the Purchase Order
are found to be not of correct quality or not according to specifications
required as per the Purchase Order or received in damaged or broken
conditions or otherwise not satisfactory owning to any reason and
of which the Company (National Fertilizers Limited) shall be the sole

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judge, the Company will entitled to reject the materials, cancel the
contract and buy its requirements in the open market against the
Purchase Order and recover the loss, if any from the supplier, reserving
to itself the right to forfeit the deposit, if any placed by supplier for the
due fulfillment of the contract. The supplier will make arrangement to
remove the rejected material at his risk and responsibility.
8. Test Certificate : All certificates called for under the conditions
of the order must be sent by Registered Post/Speed Post/Reputed
Couriers.
9. National Fertilizers Limited will not allow any upward revision or
prices during the period of contract unless specifically stated in the
Purchase Order.
10. DELIVERY PERIOD : Time shall be deemed to be the essence
of contract. In case of delay in supplies, unless extension of delivery
has been granted by NFL on application by the suppliers; NFL may at
their option either (i) recover from supplier as liquidated damages a
sum equal to half per cent per week or part thereof of the value of
stores not delivered, subject to a maximum of 5% of the value of the
order, or (ii) purchase elsewhere on account and at the risk and cost of
the supplier the stores not delivered, or (iii) cancel the order without
prejudice to the rights of NFL under (i) and (ii) above.
11. FORCE MAJOURE : The delivery period indicated in the Purchase
Order should be strictly adhered to and normally no extension in
delivery would be granted. However, if any time during the currency
of the contract the performance in whole or in part by either party
of any obligation under the contract shall be prevented or delayed
by way of any war, hostility, acts of public enemy, civil commotion,
sabotage, fires, floods, explosion, epidemics, strikes, lock outs or acts
of Gods, provided notice of any such happening is given by either
party to the other within 21 days from the date occurrence thereof
neither party shall, by reason of such event, be entitled to terminates
contract nor shall either party have any claim for damage against the
other in respect of such non-performance or delay in performance and
deliveries under the contract shall be resumed as soon as practicable
after the event has come to an end, ceased to exist, provided that if
performance in whole or part of the contract is prevented or delayed
for a period exceeding 60 days either party may at its option, terminate
the contract.
12. SUB-LETTING: Sub-letting of contract or part thereof is not
permissible without the consent of NFL.
13. All consignments forming full wagon loads should be booked to
National Fertilizers Limited siding ……..The consignment in small may

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be booked to…………..in case of road transporters. The goods shall be

booked through those transport companies who have their regional
office at………Booking through commission agents shall be avoided.
14. BANK CHARGES : Bank charges shall be to the supplier’s
account unless specifically mentioned to the contrary or otherwise in
the Purchase Order.
15. Arbitration : The contract shall be governed by and construed in
accordance with the laws of India.
questions, disputes or differences whatsoever, which shall at any
time arise between the parties hereto, touching the construction,
meaning , operation or effect of the contract, or out the matters
relating to the contract or breach thereof, or the respective rights
or liabilities of the parties, whether during or after completion of
works or whether before or after termination shall after written
notice by either party to the contract to be referred to Designated
Unit Head / E.D. / Functional Director / Chairman & Managing
Director, National Fertilizers Limited for appointment of Arbitrator.
(Appropriate designated authority may be inserted as per contract
value)
The Arbitration proceeding shall be governed by the Arbitration &
Conciliation Act. 1996, The Arbitration & Conciliation (Amendment
Act 2015) or any further statutory modification or re-enactment
thereof and the rules made there under.
If the arbitrator, to whom matter is referred, vacates his / her office
by any reason whatsoever then the next arbitrator so appointed
by the authority referred above may start the proceedings from
where his predecessor left or at any such stage he may deem fit.
is made to the Arbitrator or the Arbitral Tribunal for the purpose
of resolving the disputes / differences arising out of the contract
by and between the parties hereto, the Arbitrator or the Arbitral
Tribunal shall not award interest on the awarded amount more
than the rate of SBI MCLR / Base rate applicable to NFL on the
date of award of contract.
Chamber of Commerce (ICC) Will be applicable which may be as
under:-

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contract shall be finally settled under the Rules of Arbitration of
the International Chamber of Commerce, India by one or more
arbitration appointed in accordance with the said Rules”.
arbitration shall be through PMA, DPE. For ready reference, The
Arbitration Clause in that case shall be as follows:-
such disputes or difference shall be referred by either party for
Arbitration to the sole Arbitration 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 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 authorized by the Law Secretary, whose
decision shall bind the Parties finally and conclusively. The Parties
to the disputes will share the cost arbitration as intimated by the
Arbitrator”.
16. The contract shall deem to have been entered at……..and all suits
in respect of this contract shall be in the court of ……

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ANNEXURE - VI
…………………………………Unit)
CST No. ………………………… Phone:
ST No. …………………………… e-mail:
TIN NO. ………………………… Fax:
Purchase Order Amendment
Ref. No………………………………… Date………………………..

M/s. ………………………………………
………………………………………………
…………………………………………………
Sub: P.O. No. ……………………………..

Ref. Your letter No. ………………………..
Dear Sir,
The following amendment(s) to the above purchase
order is/are hereby authorized:
All other terms and conditions of the Purchase Order remain unaltered.
Yours faithfully,
For & on behalf of

C.C. 1. Indenter
2. F & A - This issues with the concurrence of Finance Deptt.
3. Store Section

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ANNEXURE - VII
………………………………………Unit)
Local Purchase cum Receipt Voucher
L.P.V. No…………………………………………… Date ……………………

Purchase against Indent…………………… Date ……………………
Head of A/c……………………………………… Division …………………
Inspected by……………………………………..
Emergency/Routing………………………………
S.No. Description Unit Quantity Quantity Rate Amount Remarks

Ordered Received Rs. Rs.
Supplier……………………… Cash Memo/Bill no.………………Dated….……………
1. Please supply the above material/FOR…………………………….

2. Above materials have been collected from supplier
3. Payment has been made vide cash memo No………
Dated…………………
4. Payment is to be made
5. Above items have been purchased on petty purchase
basis.
6. The rates charged above are reasonable.
(Strike out whichever is not applicable)
(Material Officer)

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Received by Taken in stock Checked and

Adjusted by
Accounts
Purchase Stores Indenter Ledger Signature
Folio No. of
Indenter/
Stores

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ANNEXURE - VIII
…………………………… Unit)
Stores Receipt Voucher
Supplier: M/s. ……………………… SRV No. ………………. Date………………………

Indentor…………………………………………………………………………………
P.O.No. ………………………………… Date…………………………….
Indigenous/Imported
Challan No. ………………………… Date……………………MIR No. ………………….
Date………………………… Bill/Cash Memo No. ………………… Date…………………
OSRD…………………………………… Date…………………………
Mode of Transport …………………… Truck/Wagon No. ………………………………
Name of Transporter…………… GR/RR No. ……………… Date………………………
GR/RR Weight …………………… Actual Weight…………No. of cases. …………
Unloaded By………………………… Handling Challan No…………Date……………
Freight payable/prepaid………… Rly. Credit NoteNo…………………………………
Sr. Desc- Item Unit Challan Qty. Rate Value Freight Octroi Handling Total
No. ription Code Qty. Accepted Insurance
Manager (Materials)

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ANNEXURE – IX
Proforma for Indemnity Bond
THIS DEED OF INDEMNITY made between M/s ……………

…………..………………………having its registered office at ……………………and
place of business at……………………… The Contractor, which expression
shall include its successor and assigns of the one part and M/s
National Fertilizers Limited, a company incorporated under the Indian
Companies Act and having its registered Office at SCOPE Complex,
Core-III, Institutional Area, Lodhi Road, New Delhi (hereinunder called
‘the purchaser’) which expression shall include its successors and
assigns of the other part.
WHEREAS the Purchaser has placed a Purchase Order No.

……………………………….on the Contractor for …….. …………….and whereas
one of the conditions of the said Contract, is that the Purchaser will
supply to the contractor free issue Material for………………………………. As
specified in the said Contract for the purpose of ………………………….…
…………………..and WHEREAS the Purchaser has agreed to send the said
Free issue Material in the terms of the said Contract upon the terms
that the Contractor should enter into covenants hereinafter contained.
NOW THIS DEED WITNESSETH AS FOLLOWS:

1. In pursuance of the said agreement and in consideration of the
promises the Contractor hereby permits and acknowledges that
the Contractor holds and shall always hold the said Free Issue
Materials (which will from time to time be sent by the Purchaser
to the Contractor) under the said contract, in trust for to the
order of and on account of the Purchaser.
2. The Contractor hereby assume full responsibilities for the said
Free Issue Materials shall keep the said Free Issue Materials free
of charge to the Purchaser in the safe place and in good condition.
3. The Contractor hereby agrees to indemnify and keep the Purchaser
indemnified at all times hereafter against all claims, demands,
proceedings, losses, damages, costs charges and expenses which
may be or brought against the purchaser of which the Purchaser
may suffer or incur by reason of any loss or damage to the
Contractor or its employees caused by the default or negligence
of the Contractor or its employees or agent and/or by reasons of
breach by the Contractor or its covenants obtained in clause 1
and/or clause 2 hereof.
4. The Contractor hereby admits that the Purchaser shall have a

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first lien or charge for any amount due to the Purchaser from the
Contractor hereunder on any amount which may be due from the
Purchaser to the Contractor under the said contract.
5. The said contract shall constitute and form an integral part of
these presents provided that nothing herein contained shall effect
the right of the Purchaser under the said contract.
6. NOTWITHSTANDING anything stated herein above, Contractor’s
liabilities under this Guarantee are restricted to Rs………………
(Rs……………………………. only) and it will remain in force
till…………………unless an action to enforce claim under the
guarantee is filed against Contractor before the aforesaid date all
Purchaser’s rights under the said guarantee shall be forfeited and
Contractor shall be relieved and discharged from all the liabilities
there under.
Date……………………………

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ANNEXURE - X
Proforma for Bank Guarantee Against

Advance Payment
(On Stamp Paper issued in the Name of the Bank)
Guarantee No…………………………
Dated………………
In consideration of the National Fertilizers Limited, a Company

incorporated under the Indian Companies Act and having its
registered office at SCOPE Complex, Core-III, Institutional Area,
Lodhi Road, New Delhi 110 003 (hereinafter called “NFL”) having
agreed to advance a sum of Rs……………. (Rupees……………………………
only) to M/s………………………………….. (Hereinafter called “SUPPLIER”)
as ………..% advance against supplies against Purchase Order
No………………….. dated……………. for Rs………. (Rupees………………. only).
We, ……………………….(Bank), having its registered office at …………………..
(Hereinafter referred to as the “BANK”) do hereby undertake to
pay immediately on demand by NFL an amount not exceeding
Rs………………….. (Rupees…………………. only) [i.e. Rs…………..as Principal
Amount and Rs………………………. as Interest for ………….Months]. NFL
can demand, against this Bank Guarantee, only an amount equivalent
to an amount not adjusted by NFL against the supplies by the Supplier
as per the Purchase Order.
2. Bank do hereby undertake to pay the amounts due and payable

under this guarantee without any protest or demur immediately
on a demand by NFL. Any such demand made on the Bank shall
be conclusive as regards the amount due and payable and the
Bank will make the payment immediately without referring to
Supplier.
3. The Bank further agrees that the guarantee herein contained shall
remain or shall be released to the Supplier when the deliveries are
completed or advance made towards supplies are fully adjusted
bill of deliveries with earlier certification by NFL.
4. We………………….. (Bank) further agree with the NFL that NFL shall
have the fullest liberty without the Bank’s consent and without
effecting in any manner or obligations hereunder to vary any of
the terms and conditions of the Purchase Order or to extend time
of performance by the Supplier from time to time or to postpone

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for any time or from time to time any of the powers exercisable
by NFL against the Supplier and to forebear or enforce any of
the terms and conditions relating to the No…………….. Dated……….
and the Bank shall not be relieved from its liability by reasons of
any such variation or extension being granted to the Supplier or
for any forbearance, act or omission on the part of NFL or any
indulgence by the NFL to the Supplier or by any such matter or
thing whatsoever which under the law relating to sureties would,
but for this provision, have effect of so relieving Bank.
5. We……………. (Bank) further agree that it shall not revoke this

guarantee during its currency of Guarantee except with the
previous consent of NFL in writing.
6. This guarantee will not be discharged due to the change in

constitution of the Bank or the Contractor(s)/Supplier(s). Also the
guarantee will not be discharged due to change in the constitution
or Management of NFL.
7. We……………. (Bank) agree to extend the validity of the guarantee

for the period(s) as asked for by M/s ………………………….
8. Notwithstanding anything contained herein before, our total

liability under this guarantee is restricted to Rs…………………
(Rupees……………………………. only) and shall remain in force
until………………….. unless a demand or claim to enforce a claim
under this guarantee is made against us in writing on or before
the date i.e……………….. all rights of NFL, under this guarantee
shall be forfeited and the Bank shall be released and discharged
from all liabilities hereunder.
Dated:…………………… Bank……………………………

(Corporate Seal of Bank)

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ANNEXURE - XI
Policy Guidelines for e-Procurement
1.0 INTRODUCTION:
E-Procurement is very important to achieve e-governance
and for applicability of uniform procurement process to all
units. It has ability to reduce procurement cost by reduction
in lead time, reduction in transaction cost and cycle times
etc. E-procurement also helps in building collaborative
relationship with suppliers, E-procurement enables greater
transparency, it also enables best practices and increase
vendor base. E-procurement also reduces the possibility of
cartel formation and generates reasonable competition. It
also achieves savings in administrative and process cost.
E-procurement enhances the security and it is also a step
towards ERP systems for the organization.
2.0 CONCEPT AND SCOPE:
E-procurement is purchase and sale of supplies and services
and management of procurement process over internet.
E-procurement application allows qualified and registered
users to look for buyers or sellers for goods & services.
E-procurement can be divided in two parts i.e. e-tendering
and reverse auctioning. While e-tendering is an exact
replication of the existing tendering process, the reverse
auctioning is an on line auction wherein the participating
bidders are required to reduce their prices during the allotted
time period.
3.0 POLICY:
NFL has operating units at Nangal,(Pb) Bhatinda(Pb), Panipat
(Haryana)& Vijaipur (MP) & uniform system is envisaged
which shall be efficient, economic and transparent. The
e-procurement shall be applicable to all the NFL units and
Corporate Office at Noida. Procurement process shall gradually
be taken electronically so that we achieve all possible
procurement through electronic media. The present policy is
for adoption of procurement process through electronic media,
therefore the existing DOP shall emain same.
4.0 IMPLEMENTATION STRATEGY
a) All procurements valuing Rs. 2 lakhs & above including
b) proprietary, import of equipment/spares & non-specified
items shall be processed through e-tendering.
c) In case of two part bid system, the Technical
clarifications shall be asked manually after electronic
opening of techno-commercial bids and price-bids
may be opened electronically after completing all the
formalities for Techno-commercially acceptable bidders.

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d) In those cases where drawings have to be provided

to vendors, the same shall be sent to all vendors
separately through Speed-post/ Couriers after issuance
of Tender electronically.
e) Procurements under long term agreements/ contracts
with M/s. IOC for HSD/ Lubricants/LPG etc. and
Structural STEEL from M/s. SAIL be excluded and
continue to be done manually.
4.1 Targets:
a Implementation of e procurement at all units have been
targeted as detailed below:-
E-Tendering will be resorted to in cases where the (1) value
of procurement is Rs. 2 lakhs and above (2) Where valid
pre-qualified/Registered list of vendors is available (3) where
the specifications are general & standardized (off the shelf
items).
Reverse Auction is, however, not compulsory for all
e-tendering cases. Reverse Auction may be conducted for
high value cases where no. of technically acceptable bids are
likely to be three or more. Conduction of Reverse Auction is
to be decided at the time of tendering i.e. before issue of NIT
and decision for inclusion of Reverse Auction in NIT has to be
taken at this stage on the merits of the case.
4.1 For all Proprietary / OEM purchases, prior consent of vendors
b). shall be taken about their willingness to participate in
e-tendering. For this purpose, all known vendors shall be
asked to send their confirmation as per the draft format.
Enquiry shall be issued thereafter through e-tendering to
them.
4.1 c). In case vendors are unwilling to participate through
e-tendering the proposal for waiver of e-tendering may
be submitted for approval by unit with due justification.
Director (Tech) shall approve all the proposals for waiver of
e-tendering for Proprietary / OEM purchases.
Other cases shall however require the approval of C&MD as
per present practice.
4.2 Selection of items:
Selection of e-procurement items necessarily should take
care of capability of vendors to respond to electronic
procurement process, generation of adequate competition
and appropriate package value that would justify the service
charges payable.
4.3 TRAINING will be imparted to vendors /officials wherever
required at Units/C.O.

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4.4 SECURITY CONCERNS

In order to assure confidentiality, security and authenticity
and non-repudiation, following techniques shall be used.
Security will not be restricted to these but if felt appropriate,
at any time, additional features shall be applied.
• Digital Signature
• SSL/passwords
• Tender preparation and release…. Work flow based
• Bid preparation – data resides on server Only bidder is able
to view
• Bid submission – with HASH and encryption
• Bid opening – can be viewed only upon Un – encryption.
4.5 PROCESS
The process of e-procurement shall be taken up by
Materials department after receipt of a requisition / indent
from the User department. The indent duly approved by
the competent authority as per DOP, is a pre-requisite to
initiate e-procurement action. The indent complete in all
respect along with all required information, documents,
specifications, quality plan shall be forwarded by indentor to
Materials department.
The proposed e-procurement process is as per Annexure A & B.
4.6 • Annexure A…Defining work flow
• Annexure B…Defining tendering procedures
• Appointment of Service provider …to be taken up at
Corporate Materials Deptt.
4.7 The main steps involved are:
• Mode of tendering
• Defining tender documents
• Obtaining digital certificate for authorized NFL officers.
• Generation of passwords.
• Hosting of tender documents.
• Release and Uploading of document
• Defining tender schedule
• Allowing download of tender document
• Clarification on tender document on line
• On line pre-bid clarification / Amendments
• Preparation of bids on line
• Submission of bids on line
• Up-loading of bids
• Submission of EMD – off-line (on line payment possible
where e-payment facility is available)
• Opening of bids – on line (upon Applying individual digital
certificate & Passwords by Designated Members of Tender
Opening Committee)
• Opening Committee)
• Opening of envelope – 1…EMD
- 2…Technical details & data sheets and

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• On line evaluation of technical bids

• On line technical clarifications
• Arriving at technical loading off-line
• Incorporation of loading logic
• Off line Mtls. Deptt.’s recommendation for opening of
price bids
• Opening of envelope – 3…price bid
• On line generation of comparative statement
• On line reverse auction (To be conducted on merits of
the case)
4.8 • Final recommendations and award
• Release of purchase orders
• Retention of documents
4.9 Retention of Documents:
Case file should necessarily contain following documents.
• Purchase indent along with administrative approval
• Approved note sheet for resorting to e-tendering
• Approved note sheet for nomination of Tender Committee
• Tender Documents
• Tender release schedule
• System generated technical data comparative statements
• Approved note sheet for technical evaluation /short
listing of
• vendors / price Bid Opening
• System generated price Bid comparative statements
• Down loaded copy of item rate details as per BPS.
• Original copy of item rate details as per BPS from L-I
bidder
5.0 Delegation of Power:
The delegation of powers, Policies and guidelines issued from
time to time and relevant for procurement cases will be
applicable for e-procurement also

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ANNEXURE - A
e-Procurement Process – Workflow
Registration of Indent
Check for value
Proposal for Floating

On LINE tender through
e-procurement Portal
TC Nomination
Indentor & Finance
Release Tender through

e-procurement Portal
OFF LINE Online Bid Submission

EMD submission
ONLINE Technical Bid Opening
Technical Evaluation using online

Technical Bid Comparator
Ter
TC Meeting, note proposal for technical
approval Off-line short-listing of parties for
price BID opening
Auto opening of Price Bid & auto Generation

Of CS reports. On-line Price Biding(1) (Dynamic)
Reverse Auction (wherever applicable)
Control/Registration of
Purchase Order
Release of PO to supplier
To release EMD for Unsuccessful bidders

Security Deposit from Successful bidders

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Annexure - B
e-Procurement Workflow Chart for a Tender ……
S.No. Steps Proposed /

suggested action
1. Defining work Copy of work flow …

flow Anneuxure – I
To be configured by the SERVICE
PROVIDER and to be followed
uniformly by the purchase groups
while following electronic
tendering e-procurement.
2. Appointment of Service provider by

Service provider Corporate Materials Deptt.
3. e-tendering as a Is broadly defined in following

EVENT segments
a. e-procurement pre-requisites
…includes setting of software
and buyer cum supplier
Training
b. Pre-event …items
identifications,
specifications,etc.
c. Event ...on-line tendering
including Auctions & reports.
d. Post-event ..post auction
Item rate and the Archive
reports.
4.00 Features of the process
4.1 Hoisting of
Tender Documents
Hoisting of Tender On line

Documents by
Materials Deptt.
Officials, using digital
Certificate
Allowing Downloads to On line

Bidders, By providing
passwords

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Submission of EMD Off line
Verifying of EMD Off line

Details
Submission of BIDs On line
4.2 Tender Opening
Opening of Technical On line

Bids
Bid opening by Material Online

Deptt. Official, Using
Digital Certificates &
Pass words
Technical clarification Online
Evaluation of tech. On line/ off line

Bids.
Final TER & Arriving Off line

at Technical Loading
Approval for short Off line

listing of bidders of
Technical
acceptable Bids for
price bid opening &
technical
loading
4.3 Opening for price Bids Online

..Incorporation of
Loading Logic
Opening of Price Bids Online

Using Digital
Certificates & pass
words
4.4 Conducting Reverse Online

Auction
(wherever
applicable)

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Explanatory Notes to the process
1.0 Defining Procedures shall be similar at all the

tendering procedures plants, process designed by C.O
based on various experiences gath-
ered from
pilot e-procurement project carried
out at Corporate Office and various
plants.
2.0 Mode of tendering Limited Tender
4.0 Defining tender The broadly following sections should

Documents. be part of a tender documents as
required on case to case basis:-
1. Bill of Materials
2. Instructions to bidders.
3. General purchase conditions
4. Proforma of Bank guarantee to-
wards EMD
5. Reverse Auction Rules.
6. Technical Data Compliance
Sheets.
7. Bid Price Schedule
8. Statement of deviation.
5.0 Apply & issue of Apply and Receive the digital Certif-
Digital certificates icate from the certifying authorities
for the designated` Committee
members. Service Provider may also
render assistance through sub-CA.
6.0 Generating of pass Generated by SERVICE PROVIDER
Words. and refixed by the digital certificate
holders.
7.0 Defining of Server The server time of e-procurement
Timing of clock portal / site shall be ensured before
release of tender document.
8.0 Hosting of tender Tender documents to be electronically
Documents released for hosting at the e-procure-
ment portal.
Release and Unload- The tender documents defined above
ing of documents shall be released and uploaded on
e-procurement portal (in association
with Service Provider ) by the Materi-
als Deptt. Representative under their
Digital Certificate and Passwords.
9.0 Defining Tender Tender Schedule is as below:
Schedule

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S. NFL Stage Contractor Start Expiry Date

No. Stage Date & Time & Time
a. Release
Tender
b. - Tender
Download
c. Bid
Preparation
(Techno-
Commercial
& Price bids)
d. Securing
Techno-
commercial
&
price Bids
e. - Bid
Submission
f. Techno-
commercial
Bids
Opening
g. Price
Bids Opening
h. Initiate Participate
Reverse in Reverse
Auction* Auction*
i. Matching of
Price (if
required by
NFL)
j. View
Matching
Price (if
required)
k. Tender
Award
* Wherever applicable

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10.0 Allowing download Only those authorized by NFL

of Tender at the time of the Tender release.
11.0 Clarification on If required, Vendors shall seek
tender document on the clarifications on released
online. document, Materials Deptt. shall
respond and issue the clarifications
on-line to the queries, these queries
shall be on ONE to MANY basis.
The reply to the query shall be
automatically forwarded to all the
vendors who have down loaded the
documents.
12.0 Preparation of bids Based on the clarifications to the
online Vendors, if required, Materials
Deptt. may issue the necessary
amendments, these shall be on ONE
to MANY basis. The amendment shall
be automatically forwarded to all the
vendors who have down loaded the
documents and shall be available for
down load too.
13.0 Preparation of bids Vendors shall be preparing the
online Bids on line. Till the time they are
submitting their bids, they shall be
saving the bids at the server under
their Digital Certificate also using
PKI. For encryption & decryption
for ensuring the confidentially and
security of the bids.
14.0 Submission of bids Vendors shall have to submit bids
on line online on the NFL, e-procurement
website.
15.0 Up-loading of bids All the vendors shall upload their
bids on the NFL, e-procurement
website based on the tender
requirements defined in the tender
documents, viz
• Qualifying Requirements
documents.
• EMD details
• Technical data sheets and
Commercial bid etc.

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16.0 Submission of EMD All the vendors shall send the EMD in
offline acceptable form to NFL directly and
should reach to tendering authority
on or before bid opening date.
Any special treatment to be allowed
for EMD should be clearly brought out
in the Tender document.
17.0 Submission of EMD The copies of the EMD details shall
offline be uploaded on the website. In
case of vendors who are exempted
from submitting EMD, the necessary
documents shall be uploaded on the
website.
18.0 Opening of BIDs – At the time of bid opening, Designated
on Committee shall open the EMD
line By applying documents first, Then the qualifying
individual digital requirement details shall be opened,
certificates & followed by the Technical bid opening
passwords and the technical data sheets and the
by Designated deviation statement.
Committee
Committee using individual or
concurrent log in by digital
certificates &/or passwords shall
open the electronic envelope cum
tender box consisting of
1. Envelope – 1… containing
EMD details
2. Envelope - 2…. Containing
Technical details & data sheets
and
3. Envelope – 3… containing
bid price schedule + Cost of
deviation (if any)
The price bids of only those vendors
who are techno- commercially
acceptable and have either
submitted necessary EMD or
submitted necessary documents for
EMD exemption will be opened on
later date by the committee.

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19.0 Opening of EMD Designated Committee shall open

Envelope-1 the EMD Details and compare and
verify with the physical details
of EMD received. Where ever
discrepancy, the off line EMD will be
final and binding.
20.0 Opening of technical Designated officer(s) shall open the
Bids Technical bids, using individual
Envelope-2 digital certificates.
Opening of data Designated officer(s) shall open the
sheets Technical deviation details, using
Envelope-2 individual digital certificates.
On line evaluation Designated officer(s) will evaluate
of the bids on line based on the
technical bids technical comparative sheets
generated by the system.
On line technical Designated officer(s) will seek on-line
clarifications clarifications if required, from the
individual vendor.
These clarifications shall be on one to
one basis and shall be sought on-line
only.
21.0 Arriving at Based on the clarification furnished
technical by the vendors, against the declared
loading off line (technical & commercial) deviations
(if any) finally arrived at during the
technical evaluation, loading is
required in terms of money value.
Incorporation of Incorporate the loading
loading logic by logics in consultation with
Service Provider Service Provider before deciding
the price bid opening date. Ensure
the loading logic is incorporated
towards the loading.
22.0 Short listing of Based on technical evaluation cum
vendors QR qualification in case of Open
Tender, obtain approval for short
listing of vendor for opening of Price
Bid for technically qualified vendors.
Define Price Bid Opening Date.

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23.0 Opening of Bid Defining bid opening date (BOD) for

price bids opening.
Price Schedule On line opening of price bids by
Envelope-3 Designated officer(s) using individual
digital certificates & passwords with
the help of Service provider.
1. Open cost of Deviation (if any)
provided by the bidders.
2. Open the item rates (BPS).
Comparative Generate On-line Comparative
Statement statement, after completion of
price bid opening based on offers
submitted by Vendors. Also generate
Evaluated Comparative Statement
based on the various loadings.
24.0 Conduction of After opening of price bids and
Reverse Auction generation of Comparative
(wherever Statement, reverse auction shall be
applicable) conducted. All the bidders whose
offers were found to be technically
acceptable shall be allowed to
participate in R.A. The bidders will be
given user ID, Password, alias name
etc. for log on to the designated
website for this purpose. They shall
have the option to reduce the prices
from the starting(base) price by the
pre-decided bid decrement value
during the allotted time. The starting
price shall be generally the lowest
price received on initial price bid
opening.
25.0 Reverse Auction Generate complete report of the RA
Report event with starting price to last price
along with details of participating
bidders, their bids and time record
etc.
26.0 Training Training of NFL personnel Training of
vendors The Designated officers(s)
& Service Provider shall ensure that
the proper training is imparted to the
participating Vendors.

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27.0 Archiving & Data towards concluded tenders,

vaulting which has been Logically completed,
shall be transferred to NFL Servers
for the purpose of long term Audit
requirements.
28.0 Documents to be Case file should necessarily contain
retained for following documents.
verification 1. Purchase indent along with
administrative approval.
2. Approved note sheet for resorting
to e-tendering
3. Approved note sheet for
nomination of Designated
Committee.
4. Tender Documents
5. Tender release schedule
6. System generated technical data
comparative statements.
7. Approved note sheet for technical
evaluation / short-listing of
vendors / price Bid Opening.
8. System generated Price Bid
omparative statements.
9. Reverse Auction report (wherever
applicable)
10. Down loaded copy of item rate
details as per BPS.
11. Original Copy of item rate details
as per BPS from L-I Bidder.

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ANNEXURE - XII
Security Deposit-cum-Performance Bank Guarantee Format


made this day of ____________________________ between
_______________________________ ______________________
a bank incorporated and having its registered office at
III, Scope Complex, 7,Institutional Area, Lodhi Road, New Delhi - 110
its successors and assigns on the other part. WHEREAS in pursuance
to the agreement dated ____________________(hereinafter
called CONTRACT) entered into between National Fertilizers Limited
(hereinafter called OWNER and_______________________________
___________ a Company incorporated in_______________________
(hereinafter called CONTRACTOR) which expression shall unless
repugnant to the context or contrary to the meaning thereof include its
successors and assigns, for supply of__________________________
____________________________________________ as envisaged
in the Contract, Contractor has to submit a Security Deposit-cum-
Performance Bank Guarantee for Rs._________. CONTRACTOR
accordingly agrees to furnish the Security cum performance Bank
Guarantee as hereinafter contained towards fulfillment of all of its
obligations under the contract.

amount of Rs.______________________________________at

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mentioned by Owner in the notice. The decision of the Owner as

to whether the terms and conditions of this Security Deposit cum
Performance Bank Guarantee have been observed or not shall be
final and binding on the BANK. In any case, however the Bank’s
responsibility under this Security Deposit-cum- Performance
Bank Guarantee is limited to Rs. _________________________
__________________________________.
2. This Security Deposit-cum-Performance Bank Guarantee shall be

valid for an initial period of_______________________Months
from the date of this Bank Guarantee No.___________________
dated ______________ given by the Bank to Owner become
effective. Upon issuance of Commissioning / Erection /
Completion certificate according to terms of contract on expiry
of _________________ months after the issuance of the above
mentioned certificate of commissioning / erection / completion
certificate, the Security Deposit-cum-Performance Bank
Guarantee shall become null and void.
3. This Security Deposit-cum-Performance Bank Guarantee shall be

in addition to and shall not affect or be affected by any other
security now or hereafter held by Owner on account of money
hereby intended to secure and Owner at its discretion and without
any further consent from the Bank, and without affecting its
rights against the Bank, may compound with, give time or other
indulgence to or make any other arrangement with Contractor
and nothing done or omitted to be done by Owner in pursuance
of any authority or permission contained in this guarantee, shall
effect discharge of the liability of the Bank.
4. UNLESS PREVIOUSLY CANCELLED BY THE OWNER, this Security

Deposit-cum-Performance Bank Guarantee will remain in force
initially up to __________________months from the effective
date of Bank Guarantee No. ________________ dated
____________ given by the Bank to the Owner and subject to
provisions of paragraph 2above will stand automatically cancelled
on the expiry of the said period. Unless demand or claim under
this Bank Guarantee is made on Bank in writing within three
months from the date of expiry of this Bank Guarantee, all the
rights of Owner against the Bank shall be forfeited and Bank shall
be relieved and discharged from all the liabilities hereunder.


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6. The Security Deposit-cum-Performance Bank Guarantee is to be

returned to the Bank after its expiry in terms of Paragraph 4
above.
Dated _____________ this __________________ day of ___________


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ANNEXURE - XIII
Bid Security (EMD) form
Draft of Bank Guarantee for Bid Security Deposit/EMD
IN CONSIDERATION OF NATIONAL FERTILIZERS LIMITED (NFL),

HAVING ITS REGISTERED OFFICE AT SCOPE COMPLEX, CORE-
III, 7 INSTITUTIONAL AREA, LODHI ROAD, NEW DELHI-110003
(HEREINAFTER CALLED NFL WHICH EXPRESSION SHALL UNLESS
REPUGNANT TO THE SUBJECT OR CONTEXT INCLUDES ITS
SUCCESSORS AND ASSIGNS) HAVING AGREED TO EXEMPT
____________(HEREINAFTER CALLED THE, THE SAID TENDERER(S)’
WHICH EXPRESSION SHALL UNLESS REPUGNANT TO THE SUBJECT
OR CONTEXT INCLUDES HIS SUCCESSORS AND ASSIGNS) FROM
THE DEMAND UNDER THE TERMS AND CONDITIONS OF TENDER
NO ________________FOR___________________HEREINAFTER
CALLED “THE SAID TENDERER’ OF SUCH BID SECURITY DEPOSIT FOR
THE DUE FULFILMENT
BY THE SAID TENDERER(S) OF THE TERMS AND CONDITIONS

CONTAINED IN THE SAID TENDER ____________FOR ____________
ON PRODUCTION OF BANK GUARANTEE FOR
RS._________________________________________ (RUPEES
________________________ONLY).
1. WE___________________BANK HEREINAFTER REFERRED TO

AS ‘THE
BANK’ DO HEREBY UNDERTAKE TO PAY TO NFL AN

AMOUNT NOT EXCEEDINGRS.___________________
(RUPEES____________________ONLY) AGAINST ANY LOSS OR
DAMAGE CAUSED TO OR SUFFERED BY ‘NFL’ REASON OF ANY
BREACH BY THE SAID TENDERER(S) OF ANY OF THE TERMS AND
CONDITIONS CONTAINED IN THE SAID TENDER (THE DECISION
OF THE COMPANY AS TO ANY SUCH BREACH HAVING BEEN
COMMITTED AND LOSS SUFFERED SHALL BE BINDING ON US.
2. WE _________________BANK DO HEREBY UNDERTAKE TO PAY

THE AMOUNTS DUE AND PAYABLE UNDER THIS GUARANTEE
WITHOUT ANY DEMUR MERELY OR A DEMAND FROM ‘NFL’
STATING THAT THE AMOUNT CLAIMED IS DUE BY WAY OF LOSS
OR DAMAGE CAUSED TO OR WOULD CAUSE TO OR SUFFERED BY
‘NFL’ BY REASON OF ANY BREACH BY THE SAID TENDERER(S) OF
ANY OF THE TERMS OR CONDITIONS CONTAINED IN THE SAID
TENDER OR BY REASON OF THE SAID TENDERER’S FAILURE TO

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KEEP THE TENDER OPEN. 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 LIABILITY UNDER THIS GUARANTEE SHALL BE RESTRICTED
TO AN AMOUNT NOT EXCEEDING________________(RS______
_______________________________ONLY).
3. WE ____________________BANK FURTHER AGREE THAT THE

GUARANTEE HEREIN CONTAINED SHALL REMAIN IN FULL FORCE
AND EFFECT DURING THE PERIOD THAT WOULD BE TAKEN FOR
THE FINALISATION OF THE SAID TENDER AND THAT IT SHALL
CONTINUE TO BE ENFORCEABLE TILL THE SAID TENDER IS
FINALLY DECIDED AND ORDER PLACED ON THE SUCCESSFUL
TENDERER AND/ OR TILL ALL THE DUES OF NFL UNDER/
OR BY VIRTUE OF THE SAID TENDER HAVE BEEN FULLY PAID
AND ITS CLAIMS SATISFIED OR DISCHARGED OR TILL A DULY
AUTHORISED OFFICER OF NFL CERTIFIED THAT THE TERMS
AND CONDITIONS OF THE SAID TENDER HAVE BEEN FULLY
AND PROPERLY CARRIED OUT BY THE SAID TENDERER(S)
AND ACCORDINGLY DISCHARGES THE GUARANTEE. UNLESS A
DEMAND OR CLAIM UNDER THIS GUARANTEE IS MADE ON US
IN WRITING ON OR BEFORE THE_____________TO INCLUDE 3
MONTHS CLAIM OVER AND ABOVE THE PERIOD MENTIONED IN
THE PARAGRAPH FOR THE VALIDITY OF THE BANK GUARANTEE
IN THE TENDER WE SHALL BE DISCHARGED FROM ALL LIABILITY
UNDER THIS GUARANTEE THEREAFTER.
4. WE ______________________________BANK, LASTLY
UNDERTAKE NOT TO REVOKE THIS GUARANTEE DURING ITS
CURRENCY EXCEPT WITH THE PREVIOUS CONSENT OF ‘NFL’ IN
WRITING.
DATED____________DAY OF______________________200
CORPORATE SEAL FOR BANK.

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ANNEXURE - XIV
Performance Bank Guarantee Format

made this day of____________________________ between
_______________________________ ______________________
a bank incorporated and having its registered office at
III, Scope Complex, 7, Institutional Area, Lodhi Road, New Delhi - 110
its successors and assigns on the other part.
WHEREAS in pursuance to the agreement No.

_______________________ dated ____________________
(hereinafter called CONTRACT) entered into between National
Fertilizers Limited (hereinafter called OWNER and ____________
______________________________ a Company incorporated in
_______________________ (hereinafter called CONTRACTOR)
which expression shall unless repugnant to the context or contrary
to the meaning thereof include its successors and assigns, for supply
of _________________________________________________
____________________________________ as envisaged in the
Contract, Contractor has to submit a Performance Bank Guarantee
for Rs._________. CONTRACTOR accordingly agrees to furnish
the Performance Bank Guarantee as hereinafter contained towards
fulfillment of all of its obligations under the contract.

amount of Rs.______________________________________at

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mentioned by Owner in the notice. The decision of the Owner as

to whether the terms and conditions of this Performance Bank
Guarantee have been observed or not shall be final and binding
on the BANK. In any case, however the Bank’s responsibility
under this Performance Bank Guarantee is limited to Rs. ______
__________________________________________________.
2. This Performance Bank Guarantee shall be valid for an initial

period of _______________________ months from the date
of this Bank Guarantee No. ___________________ dated
______________ given by the Bank to Owner become effective.
Upon issuance of Commissioning / Erection / Completion certificate

according to terms of contract on expiry of _________________
months after the issuance of the above mentioned certificate of
commissioning / erection / completion certificate, the Performance
Bank Guarantee shall become null and void.
3. This Performance Bank Guarantee shall be in addition to and shall

not affect or be affected by any other security now or hereafter
held by Owner on account of money hereby intended to secure
and Owner at its discretion and without any further consent from
the Bank, and without affecting its rights against the Bank, may
compound with, give time or other indulgence to or make any
other arrangement with Contractor and nothing done or omitted
to be done by Owner in pursuance of any authority or permission
contained in this guarantee, shall effect discharge of the liability
of the Bank.
4. UNLESS PREVIOUSLY CANCELLED BY THE OWNER, this

Performance Bank Guarantee will remain in force initially up to
__________________ months from the effective date of Bank
Guarantee No. ________________ dated ____________ given
by the Bank to the Owner and subject to provisions of paragraph
2 above will stand automatically cancelled on the expiry of the
said period. Unless demand or claim under this Bank Guarantee
is made on Bank in writing within three months from the date of
expiry of this Bank Guarantee, all the rights of Owner against the
Bank shall be forfeited and Bank shall be relieved and discharged
from all the liabilities hereunder.


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6. The Performance Bank Guarantee is to be returned to the Bank

after its expiry in terms of Paragraph 4 above.
Dated ______________ this _______________ day of ____________.

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ANNEXURE - XV
No. ACC-1-CTE-2
Government of India
Central Vigilance Commission
*****
Satarkta Bhawan, Block-A,
4th Floor, GPO Complex,
INA, NEW DELHI-110 023.
Office Memorandum/Circular No. 10/4/07
Sub: Mobilization Advance
Commission has reviewed the existing guidelines on “Mobilization

Advance issued vide OM No. UU/POL/18 dated 08.12.97 and OM No.
4CC-1-CTE-2, dated 08.06.2004.
The following guidelines are issued in supercession of earlier

guidelines issued by the Commission of Mobilization Advance.’
1. Provision of mobilization advance should essentially be need

based. Decision to provide such advance should rest at the level
of Board (with concurrence of Finance) in the organization.
2. Though the Commission does not encourage interest free

mobilization advance, but, if the Management feels its necessity
in specific cases, then it should be clearly stipulated in the
tender document and its recovery should be time-based and not
inked with progress of work. This would ensure that even if the
contractor is not executing the work or executing it at a slow
pace, the recovery of advance could commence and scope for
misuse of such advance could be reduced.
3. Part ‘Bank Guarantees’ (BGs) against the mobilization advance

should be taken in as many numbers as the proposed recovery
installments and should be equivalent to the amount of each
installment. This would be ensure that at any point of time even
if the contractor’s money on account of work done is not available
with the organization, recovery of such advance could be ensured
by encashing the BG for the work supposed to be completed
within a particular period of time.

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4. There should be a clear stipulation of interest to be charged on

delayed recoveries either due to the late submission of bill by the
contractor or any other reason besides the reason giving rise to
the encashment of BG as stated above.
5. The amount of mobilization advance; interest to be charged, if

any, its Recovery should and any other relevant detail should be
explicitly stipulated in the tendered document upfront.
6. Relevant format for BG should be provided in the tender

document, which should be enforced strictly and authenticity of
such BGs should also be invariably verified from the issuing bank,
confidentially and independently by the organization
7. In case of ‘Machinery and Equipment advance’, insurance and

hypothecation to the employer should be ensured.
8. Utilization certificate from the contractor for the mobilization

advance should be obtained preferably, mobilization advance
should be given in installments and subsequent installments
should be released after getting satisfactory utilization certificate
from the contractor for the earlier installment.
(P.VARMA)
Chief Technical
Examiner
Copy to:
All CVOs: Ministries/Departments/PSUs/BANKS/Uts.

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ANNEXURE – XVI
Benefits to Micro and Small Enterprises (MSEs):
With reference to the Order of the Ministry of MSME , under the

Public Procurement Policy March 2012 , Micro and Small Enterprises
shall be entitled for benefits, subject to terms and conditions, as under:
a) Qualifying Criteria for MSEs, SC/ST vendors:

i. MSE bidders must submit registration certificates from any
of the following (or any other body specified by the Ministry
of MSME) :
• National Small Industries Corporation (NSIC)
• District Industries Centres (DIC)
• Coir Board
• Khadi and Village Industries Commission(KVIC)
• Khadi and Village Industries Board(KVIB)
• Directorate of Handicrafts and Handloom
ii. SC/ST owned enterprises ( i.e. SC/ST proprietorship, or
holding minimum 51% shares in case of Partnership/Private
Limited Companies) shall additionally submit relevant SC/ST
certificates issued by any of the following:
• District/Additional District Magistrate /Collector/Deputy
Commissioner/ Additional Deputy Commissioner/
Deputy Collector/1st Class Stipendiary Magistrate/Sub-
divisional Magistrate / Taluka Magistrate / Executive
Magistrate/ Extra Assistant Commissioner.
• Chief Presidency magistrate /Additional Chief Presidency
magistrate /Presidency magistrate.
• Revenue Officer not below the rank of Tehsildar.
• Sub-divisional Officer of the area where the individual
and/or his family normally resides.
iii. The registration shall be valid as on date of placement of
order. A self- attested photocopy of the relevant certificate
shall be submitted as a support document.
iv. The registration must be for the items/category of items /
services relevant to the tendered items/category of items/
services.

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(b) Purchase Preference for MSE:

In tenders, where the L1 (evaluated price) bidder is a non-MSE,
up to 20% of the tendered quantity shall be allowed to be supplied
by participating MSEs provided that the tendered quantity is
divisible into two or more orders and adequate for the purpose;
all qualifying bidders have agreed for acceptance of part-order
quantity and participating MSE matches the L1 rate.
A share of 4% out of this 20% shall be allowed to be supplied
by participating MSEs owned by Scheduled Cast/Scheduled Tribe
entrepreneurs. In the case of an SC/ST owned MSE failing to
participate in the tender or not meeting the tender requirements,
this 4% sub-target shall be met by other participating MSEs . The
above shall be subject to that the participating MSE (including
SC/ST) bidders shall have quoted a price within +15% of the L1
bid price and further that they shall agree to match their quoted
price with the L1 price.
In case that two or more MSEs are within the L1 +15% band, all
such MSEs will be offered the opportunity to match the L1 rate
and 20% of the order will be shared equally by them. Where the
MSE is SC/ST owned, they shall be exclusively awarded a share of
4% of the above 20% in addition to equally sharing the balance
16% with other non-SC/ST MSEs.
In case of more than one SC/ST MSE matching the L1 price, they
shall equally share 4% of the order, and additionally share the
balance 16% with other non-SC/ST MSE bidders.
(c) Exemption from Earnest Money Deposit (EMD)/ Tender cost and
Security Deposit (SD) for MSE:
• Tenders shall be provided free of cost and tender documents
are downloadable from the websites of NFL(http://www.
nationalfertilizers.com) and the Central Public Procurement
(CPP) Portal (http://www.eprocure.gov.in/epublish/app) or
can be obtained from the Office of Chief Manager (Materials)
/ DGM (Material)/ General Manager (Materials).
• MSE units qualifying as at (a) above shall be exempt from
paying EMD.
Additionally, MSEs registered with NSIC shall be exempt from
paying Security Deposit up to the monetary limit mentioned in
the certificate.

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124
ANNEXURE - XVII
Sub: Finalization of specification of equipments & Spares.
For finalization of specifications in respect of equipment and

spares valuing more than Rs. One crore, a Technical Committee
at unit level may be formed to finalize the specifications. The
committee may be constituted as follows:-
1) Gen. Mgr.(O&M) or above -Chairman

2) Head of technical Services -Member
3) Head of Indenting Deptt. –Member
Indents being raised for such items will be accompanied by

the recommendations of the above Committee on finalization of the
specifications. Basic guidelines to be considered by the Committee in
formulation of the specification are as proposed below:-
(A) Basic Guidelines:

The important aspects to be kept in view while formulating
the specifications and other technical particulars of the goods to be
purchased are indicated in the following paragraphs.
(i) The specifications of the goods shall meet only the actual
and essential needs of the user because ‘over-specification’
will unnecessarily increase the cost and may stifle
competition. Specifications should aim at procuring the
latest technology and avoid procurement of obsolete goods.
Specification should have emphasis on factors like efficiency,
optimum fuel/power consumption, use of environmental-
friendly materials, reduced noise and emission levels, low
maintenance cost etc. Further, the specifications should not
be too restrictive as the aim should be to attract reasonable
number of competitive tenders. The specifications should
also take care of the mandatory and statutory regulations, if
any, applicable for the goods to be purchased.
(ii) Wherever Indian Standard exists for the required goods,
the same should be adopted. Preference should be given
to procure the goods, which carry BIS (Bureau of Indian
Standards) mark. Apart from BIS/ISO, other applicable
standards i.e standard of process licensors may-also be

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125
considered while framing specifications wherever applicable.

For any deviations from Indian Standards or for any additional
parameters for better performance, specific reasons for
deviations/modifications should be duly recorded with the
approval of the competent authority.
(iii) Some departments publish their own standards. Which
apart from specifying the technical parameters also specify
special requirements of packing, marking, inspection etc.
The technical parameters in such cases may be marginally
different from the Indian Standards. In such cases , the
general principle shall be to adopt Indian Standard and the
departmental specifications could cover only such additional
details as packing marking, inspection etc. as are specially
required to be complied for a particular end use.
(iv) In cases where Indian Standards do not exist or, alternatively,
decision has been taken to source the foreign markets also,
International Standards (like ISO etc.) may be adopted.
Where no widely known standard exist, the specifications
shall be drawn in the generalized and broad based manner
to obtain competitive bid from different sources. Except in
case of proprietary purchase from a selected single source,
the specifications must not contain any brand name, make
or catalogue number of a particular manufacturer and if the
same is unavoidable due to some compelling reasons, it
should be followed by the words “ or equivalent”.
(v) All dimensions incorporated in the specifications shall
be indicated in metric units. If due to some unavoidable
reasons, dimensions in FPS units are to be mentioned, the
corresponding equivalents in the metric system must also
be indicated.
(vi) The specifications and the technical details should be
expressed with proper clarity without any ambiguity or double
meaning. Wherever necessary, the written specifications
should be supplemented with drawing for additional clarity
etc.
(vii) Deciding tender on the basic of tendered sample is too
subjective, therefore unless specially decided due to some
reasons duly recorded with the approval of the competent
authority, tender sample clause shall not be incorporated
in the specifications. If necessary, suitable stipulations
for submission of advance sample (before starting bulk
production) by the successful bidder may be incorporated in
the same specifications.

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(B) Essential Technical Particulars:

Technical particulars to be specified in the tender document shall
include the following to the extent applicable for a particular purchase:
i) Scope of supply including quantity required and also, end
use of the required goods.
ii) Specifications, technical parameters and product
requirements, expressing the requirement in terms of
functional characteristics.
iii) Drawings.
iv) Requirements of BIS mark, where applicable.
v) Requirement of advance sample, if any, at post contract
stage before bulk production.
vi) Special requirement of packing and marking, if any.
vii) Inspection procedure for goods ordered and criteria of
conformity.
viii) Requirements of special tests, if any.
ix) Requirement of type test certificate, if any.
x) Requirement of type approval for compliance of statutory
requirements w.r.t. pollution, emission, noise, etc.
xi) Training, Technical support, after sales service and annual
maintenance contract requirements, if any.
xii) Warranty requirements.
xiii) Qualification criteria of the tenderers.
xiv) Any other aspects peculiar to the goods in question like shelf
life of the equipments etc.
(C) Certification:
The official / authority formulating the specification should ensure
and also certify the specification and the technical details are complete
and correct to meet the user’s requirements fully.
Recommendations of the unit level Committee on finalization
of the specification is required to be sent to corporate Vigilance for
information only and are required to be sent after the action for
procurements has been taken. The information may be sent to C.O
Materials Deptt. on monthly basis for subsequent submission to
Corporate Vigilance Deptt.

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Purchase-Manual NFL PDF

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127

Sr. No. Content Page No.

8. Tenders Committees 44-48

12. Powers to approve /Place/ Sign 55-58

14. Receipt of Stores / Inspections 58-60

16. Samples 60-61

17. Purchase of Imported Materials 61-64

19. Expression of Interest 65

20. Pre-bid discussions 65-66

21. General and Arbitration 66-69

22. Cancellation of Purchase/Contract and 69

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Annex. No. Content Page No.

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National Fertilizers Limited

a) The delegations of powers to various officers impose commensu-

b) In exercise of the delegated powers, the competent authority

c) While deciding upon the award of contracts and/or placement

e) For CVC/Govt. guidelines as and when issued from time to time,

The “Competent Authority” wherever mentioned in the guidelines

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For the orders which are to be approved by an authority higher

2.00 BUDGET PROVISIONS

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budgetary limits and in accordance with the provisions

3.00 GENERAL PRINCIPLES FOR PURCHASE

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approval of the indent. Where detailed specifications, drawings

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4.01.3: For Other Items - The respective departments will

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• Temperature/pressure/standard, if any, where applicable.

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which the item should conform to, should be given. If such

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manufacturer, he should not be allowed to quote on behalf

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the Chairmanship of DGM/GM/ED/ D(T) and consisting of

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The categorization criteria of the criticality will be governed

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A list of import / vendor substituted items purchased, should

Type of (i) Indigenous (i) Imported Items

4.06: Emergent Indents:

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4.06.6: Other Emergent Purchases/purchase of special items

ii) Purchases above Rs. 5 Lakh but upto Rs. 10 Lakh

iii) Purchases above Rs. 2 Lakh but upto Rs. 5 Lakh

iv) Purchases below Rs. 2 Lakh

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4.09: Estimated Value: It will be the prime responsibility of the

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