Conditions of Tender & Supply

The contract shall be considered as having come in to force from the date of Notification of Award. The tenderer whose offer is accepted is hereinafter called “the supplier”.

The supplier shall pay within 15 days, security deposit @ 10% of the value of the order, unless having valid permanent bank guarantee of Rs. 5(five) lakhs with the Board. The maximum security deposit payable against the contract shall be limited to Rs. Five Lakhs.

Security deposit applicable to SSI unit in Maharashtra will be 3% (Three percent) of the order value subject to a maximum of Rs. 50,000/- (fifty thousand). However, in respect of the following categories of suppliers, the security deposit applicable shall be as under :

a) For the order value upto Rs. 25,000/-, no security deposit shall be payable by the registered suppliers on the list of Development Commissioner (Industries) and Stores Purchase Officer.

b) Small Scale Industries registered with the Directorate of Industries and Maharashtra Khadi & Gramodyog Mandal shall be exempted from payment of security deposit for value of order upto Rs. 50,000/-.

The SSI units having industries outside Maharashtra State will not be eligible for exemption or concession in the security deposit. They will have to pay full security deposit at 10% of the value of order limited to Rs. Five lakhs unless having deposited permanent bank guarantee of Rs. Five lakhs with the Board.

The failure to make payment of security deposit within 15 days as above will be viewed seriously and the contract awarded shall be liable to be terminated-.

The security deposit shall be paid in favour of Maharashtra State Electricity Board by way of:

(iii) When the amount exceeds Rs. 5,000/-, bank guarantee from a scheduled bank valid for the guarantee period of last consignment of materials as given in clause no.26 of conditions of Tender and supply in the standard form of the Board or

(iv) Pledging any of the certificates i.e. National Plan certificates. National Defense certificates. National Plan savings certificates. National Savings Certificates and National Defense Deposit certificates or

(v) Fixed deposit receipts of any scheduled bank in favour of the Maharashtra State Electricity Board or,

(vii) Government securities endorsed to the Maharashtra State Electricity Board as detailed below:

(a) All the endorsement on G.P. Notes including the last in favour of ‘Maharashtra State Electricity Board’ should be certified by the Public Debt Office. Reserve Bank of India or alternatively a fresh Note from Public Debt Office, Reserve Bank of India should be tendered.

(b) All the interest accrued on the G.P. Notes till date of transfer should be collected before submission and interest accruing subsequently will be collected by the Board periodically and credited to the depositor’s account less 2% subject to the minimum of Rs. 2/- which will be retained by the Board to cover the cost of collection etc:

This security deposit in cash or in the form of bank guarantee or otherwise is for the due performance of the material/contract and the same shall be liable to apportion towards amount due or becoming due by the supplier on his failure to execute this order or any other contract and in the event of non fulfillment of the terms and conditions of the contract.

The security deposit shall be refunded on the expiry of the guarantee period specified in condition No.26 stated herein below. In case of G.P. Notes the amount of security deposit payable should be on the basis of market value of the G.P. notes at the time of presentation of the G.P. Notes.

All materials supplied shall be strictly as per specification laid down and in accordance with the approved standard samples. In case of any materials for which there are no standard/ approved samples, the supplies shall be of the best workmanship and good quality and this office shall be informed of the progress of manufacture of the material.

The material and components not specifically stated in this specification but which are necessary for satisfactory operation of the equipment/items specified, shall be deemed to be included unless specifically excluded and shall be supplied without any extra cost.

(A) Before taking up the manufacture of the bulk supply, the supplier shall get one number sample of each item approved and sealed from the Board’s Executive Engineer (IW) or its authorized representative, within 15 days from the receipt of the order. No bulk supply should be made unless the sample is approved by the inspecting officer.

The supplier shall give advance intimation of 15 days from the date of receipt of order, to the Executive Engineer (Inspection Wing), Maharashtra State Electricity Board, Central Purchase Agency, 1st Floor, ‘Prakashgad’. Station Road, Bandra (EAST), Mumbai -400 051,for sample approval. The sample so approved, shall be a master sample retained for reference purposes, at supplier’s works till the last consignment is despatched.

The time allowed for, commencing delivery includes the time required for getting the sample approved as above. If, however, 15 days from date of receipt of the intimation for sample approval, the period for commencing/completing the supplies, will be considered to have been extended by the excess time taken for intimating the approval. If the approval of the sample is not received from the inspecting officer within 15 days, the supplier shall remind this office for the same in writing.

(B) Consignee’s Sample : At the time of inspection, the supplier shall get approved and sealed by the Board’s inspecting officer, as many samples as the number of consignees as stated above and each of the approved sample must be forwarded with the first lot being despatched to the respective consignee together with the copy of the relevant inspection report and the related test certificates.

(a) The supplier shall normally offer at a time the entire quantity required to be delivered every month as per the delivery schedule indicated at Sr. No. IV of Annexure ‘B’ for the purpose of inspection by the Board. However, in exceptional circumstances, the supplier may be allowed to offer quantity at a time not less than 50% of the quantity required to be delivered every month.

(b) Materials shall be inspected by the Board’s Executive Engineer/or the representative authorized by the Board before despatch. An intimation in the prescribed proforma about the date on which materials shall be ready for inspection, indicating approximate quantity, shall have to be given to the Executive Engineer (Inspection Wing), Maharashtra State Electricity Board, ‘Prakashgad’. 1st floor, Station Road, Bandra (East), Mumbai - 4.00 051, so as to reach him sufficiently in advance, failing which, the supplier shall be responsible for delay in delivery on account of inspection. On receipt of such intimation, the materials shall be inspected within 30 days. The materials shall be despatched only after inspection and approval of same by the Inspector. The inspection approval letter shall be valid for a period of 21 days from the date of issue of letter to enable the supplier pack the material and arrange transportation thereof within the said period. After this period of 21 days, the validity of this inspection approval letter will lapse. Thereafter, the material will have to be offered for re-inspection at the cost and risk of the supplier. Further the price variation shall be payable limited to the period of original call letter or the actual date of despatch whichever is lower and the liquidated damages for late delivery shall be levied on such delays.

(c) The supplier shall notify the names of the consignees to whom the inspected lot would be despatched. The Inspector shall intimate change in destination, if any, at the time of inspection approval and accordingly the material shall be despatched. The supplier shall get the copies of inspection approval letter together with witness certificate duly signed by the concerned Inspecting Officer IN BLUE INK only and also mention reference or inspection approval letter on the challan/invoice, failing which any delay occurred in getting the S.R. Notes from the consignees would be solely to supplier’s account.

(d) In the event, during the inspection by the Board’s Inspecting Officer, if it is observed that the quantity actually offered for inspection is less than the quantity indicated for inspection in the inspection call, the Board shall be entitled to recover from the supplier, the actual expenses incurred for arranging the inspection, and the supplier shall not dispute the amount to be recovered.

(e) The supplier shall submit the test certificates/reports from any approved laboratory or the laboratory of his own. for the respective quantity of material, before despatch. The material shall not be despatched unless and until the test certificates are approved by the Board.

(f) All the necessary help shall be extended by the supplier to the authorized representative of the Board to carry out testing of equipment/materials.

The Board at its option, will inspect the material ordered during its process of manufacturing including the inspection of raw materials and will request the supplier to carry out such tests as may be necessary to ensure proper quality of the material. The samples of components of the material shall be subject to quality check by the inspecting officer during manufacturing.

8) RIGHT TO REVISE DESPATCH INSTRUCTIONS, DELIVERY SCHEDULE AND TO DEFER SUPPLIES:

i) The Board reserves its right to revise the despatch instructions issued alongwith the order, at the time of giving final clearance for despatch after inspection of the material. If such change in destination is not intimated at the time of inspection approval or waival of inspection, the supplier shall despatch the material as per the despatch instruction in accordance with A/T indicated by his in the inspection call letter.

ii) The Board reserves its right to change the delivery schedule of the contract either by reducing the monthly lot upto 60% of the agreed lot or by increasing the same upto 120% of the agreed lot with prior two months notice and the Board shall not be liable to pay any compensation/damages on account of such change in delivery schedule.

iii) The Board reserves its right to defer the balance supply to be received against the order by giving two months notice for a maximum period of 6 months. In such an event, the delivery period for the deferred material shall be deemed to be extended proportionate to the period of deferment and the Board shall not be liable to pay any compensation/ damages on account of such deferment of deliveries.

Quantity to be despatched to consignee may not necessarily be in full wagon load/truck load and may be part load as per the Board’s requirements.

In case the supplier prefers to despatch the materials by road transport at his risk and cost and without any extra cost to the Board, the materials shall be accepted only during office hours on working days. The supplier should ensure that the goods reach the stores sufficiently in advance so as to arrange their unloading during office hours, failing which, the Board shall not be liable for unloading and for inconvenience caused to the transport contractor in the form of detention etc. Unloading at stores shall be arranged by the consignee.

Railway Receipt should be prepaid. In case the freight is not prepaid, the freight charges paid shall be recovered from the supplier with additional ‘TWENTY PERCENT’ amount of freight.

Packing used shall be conforming to specifications/conditions laid down by the railways and clear railway receipt shall be obtained by the supplier without any ambiguity, so as to facilitate proper clearance of goods at destination.

The supplier shall inform telegraphically to the consignee details of despatch giving RR/ LR No., Wagon/Truck No., Type of wagon, craneable consignment or otherwise, total value of consignment, etc. to facilitate the consignee to arrange for clearance of goods.

The supplier shall furnish bill of materials for each type of equipment/material offered which should be consistent with the drawing, sample, specification and guaranteed technical particulars. The copies of the bill of materials should always be enclosed alongwith the bill submitted by the supplier for payment wherein he should specifically mention the materials/ components despatched out of the bill of materials, if the equipment is not sent in totality. Where the equipment/material to be supplied consist of more than one component, the supplier claiming payment for equipment/materials shall certify that all components of the equipment/ material have been supplied in full for the quantity indicated in the invoice. Part payment shall not be allowed.

Each package shall contain, in waterproof cover, the detailed list indicating the order reference, date, list of content and reference to the approved bill of materials. Each item contained in the package shall be described sufficiently to enable identification of the quality, weight etc. There should not be any alteration in the packing list incorporated in the order, copy of the packing list should be sent to all the consignees, Technical Director (Stores) as well as Chief Accounts Officer (SB) and should be enclosed with the bills along with other documents.

The Board shall have the option to carryout various tests including type tests as per specification on the samples selected at random from the supplies effected, to ensure that the supplies conform in quality and workmanship to the relevant specification. The testing shall be done at independent laboratory at Board’s cost. Due notice shall be given to supplier for such sample selection and such testing thereof to enable him to be present for the same if so desired by him. If the supplier or his authorized representative fails to attend the sample selection and testing, the same shall be carried out unilaterally by the Board and the result thereof shall be binding upon the supplier. In case the sample selected from the supplies fails to withstand the required tests, then

(a) supplier shall have to replace the full quantity of the respective inspected lot supplied to various Stores and lying unused at Stores.

(b) for the quantity already accepted against the order and used, deduction in price of 10% of the value of material supplied shall be made

AND

II. in respect of further supplies made against the order, if failure of sample is noticed (i.e. second time failure against the order)

(b) for the quantity already accepted against the order and used, deduction in price of 10% of the value of material supplied shall be made,

(c) balance quantity against the order including the rejected quantity shall be cancelled without any liability on either side,

(d) the firm will be debarred from dealing with the Board upto a period of three years from the date of rejection.

Not withstanding anything herein contained, the supplier undertakes to be responsible for the safe arrival of the materials in good condition and without any loss or damage at the final destination and until the same be actually delivered to and received by the Board at its stores or other place of final destination and for this purpose, materials carried by railways or other carrier shall be deemed to be so carried at the risk of the supplier. In case of transit damage/shortages, the payment shall be made only for the quantity received in good and working condition and the consignee shall lodge claims with carriers and transfer the same to the supplier with all necessary documents for settlement of the same with carriers at the supplier’s end. The transit damages/shortages/losses reported by the consignee shall be repaired/replaced by the supplier duly inspected, free of cost, within one month from the date of such intimation of breakages/shortages/losses without waiting for settlement of the claims from carrier or insurance co. etc.

If, on inspection at the final destination, the Board discovers any loss in the materials supplied or that they are received in damaged condition or that in the opinion of the Board, they are not of the contracted quality or specification, the Board shall be entitled (notwithstanding that the property in the materials shall have passed on to the Board) to refuse to accept or reject the materials altogether and claim damages or cancel the contract and buy its requirements from any of its suppliers, stipulating earliest possible delivery and in accordance with its tender system against the supplier and recover the damages if any, from the supplier from any outstanding, sums that may be due to the supplier from the Board against this contract or against any of the contract entered into with the supplier, without prejudice to other rights and remedies available to it in law and reserving always to itself the right to forfeit the security deposit placed by the supplier for the due fulfillment of the contract.

In case the stores/materials are found not in accordance with the prescribed specifications and/or the approved sample, the same will be rejected and the supplier shall replace the rejected stores/materials free of cost within one month from the date of intimation. The replacement of goods shall also have to be got inspected as per inspection clause. Further if the stores/ equipment supplied becomes incomplete on account of either rejection or short supply of its components, the complete cost of the stores/equipment shall be recovered from supplier’s bills without notice. .

Variation in quantity to be supplied against confirmed order shall be permissible upto FIVE PERCENT PER ITEM PER CONSIGNEE.

A statement as under indicating despatches effected during every month shall be furnished to this office along with the programme of manufacturing/despatches during the following two months. In the event of no despatch, the statement shall contain nil information. This statement should reach this office on or before 7th or succeeding month addressed to Technical Director (Stores), Maharashtra State Electricity Board, Mumbai - 400 051, (Attention : Supdt. Engineer (Stores).

A consolidated details of the above information shall be furnished to office of the Technical Director (Stores) after completing the suppliers of a particular order. The copy of this consolidated .information shall invariably be forwarded to the respective consignees, failing which, security deposit paid against the contract shall not be released.

100% payment of the Contract price will be paid by A/c payee cheques within 60 days from the date of receipt of entire lot as scheduled in commencement period or in monthly delivery schedule of material at the stores in good condition. The material is to be tested/ measured by the field Officers/Consignees wherever provided for Date of issue of cheques shall be the date of payment. Following documents will have to be forwarded to the Chief Accounts Officer (SB), MSEB, Prakashgad, Station Road, Bandra(East), Mumbai - 400 051 along with bills in triplicate with copy to the consignees, to facilitate payment.

(v) Other documents like proof of having paid the excise duty as required under the prevailing rules (In case the supplier is a trader, these documents from the original manufacturer of the product shall be produced.) copy of acceptance letter of bank guarantee for security deposit, authority of exemption thereof.

(x) Chartered Accountant’s certificate for having passed entire MOD VAT benefit to purchaser.

Where required by the Board, the successful tenderer must send the operation and maintenance manuals, test certificates, drawings etc. for the material ordered. These should be sent immediately after despatch of material and a statement to that effect should be made in the invoice. Failure to comply with this provision will result in delay in payment of the bill.

The supplier shall forward the original R.R./L.R. direct to the consignee along with various documents as stated below in this clause. The original bill shall be forwarded to the Chief Accounts Officer (SB), MSEB, Prakashgad, Bandra(E) and marked ORIGINAL, the bill should indicate the sales tax registration certificate no. and date held by him under the Sales Tax Act. The Board shall not be responsible for delay in payment of bills if the supplier fails to comply with any of the above requirements.

Supplier’s copy of S.R. Note will be forwarded by the consignees through their respective Major Stores for supplier’s record towards acknowledgement of receipt of material. Accounts copy of S.R. Note will be forwarded by the respective Major Stores to C.A.O. (SB) for payment.

In case the supplier is a trader, it shall be imperative for him to furnish documentary evidence of having paid excise duty by the manufacturer whose product has been offered.

Wherever the payment is to be effected against Material Receipt Intimation (MRI) and if the supplier fails to forward the documents such as inspection report, bill of materials, approved drawings, etc. alongwith the invoice to the respective consignees, the MRI issued will be a qualified one and no payment shall be made against the said MRI.

The whole of the first lot as well as monthly lot when delivered in installments, the date of delivery and due date of payment will be counted after the receipt of the entire lot along with following documents complete in all respect by the consignee :

v) Inspection approval letter signed by the Inspecting Officer in Blue ink along with copies of routine/acceptance test certificate or copy of letter of waival of inspection as the case may be.

The Board at it’s discretion, shall arrange for payments as above from its own sources or alternatively under ICICI line of credit/IDBI rediscounting scheme, as per terms of ICICI /IDBI as may be applicable, in which case, co-acceptance charges/stamp duty shall be to Board’s account.

(A) Notwithstanding the fact that contract price is inclusive of excise duty and sales tax :

(i) Excise duty shall be only on Ex-works price and shall be paid/reimbursed at actuals on the basis of due date of delivery, against documentary evidence.

(iii) Variation in excise duty and sales tax on bought out items shall not be entertained.

(i) In the event of any structural change occurred in the MODVAT Scheme after the date of submission of the tender till the currency of the contract, the benefit out of such change shall be passed on to either of the parties.

(ii) In the event of ‘MODVAT’ credit being extended by the Government of India to more items than those already covered, the firm should advise the purchaser about the additional benefits accrued or any variation thereof, through a letter containing the following certificate, as may be considered necessary by the purchaser.

“We hereby declare that we can avail additional duty set-offs as per latest MODVAT Scheme in force now and we hereby give a reduction of .... per unit and agree to revise the prices indicated in the order. The current excise duty of ...........% is payable on this reduced price. Therefore, we request you to amend the order accordingly.”

Any amount or amounts which become payable by the supplier to the purchaser under a particular contract, shall be deducted by the purchaser from any amount/amounts due or becoming due to the supplier under the same or any other contract and shall be adjusted against dues to the Board.

Goods offered shall be guaranteed for a period of 12 months from the date of commissioning or 18 months from the date of despatch whichever is earlier. The stores/ materials found defective within the above guarantee period shall be replaced/repaired by the supplier free of cost, within one month of receipt of intimation. If the defective store/materials are not replaced/repaired within the specified period as above, the Board shall recover an equivalent amount plus 15 % supervision charges from any of the bills of the supplier.

a) On failure to replace or repair the transit damaged or rejected material within one month from the date of intimation as required under tender, it shall be deemed to have concluded that such material is finally rejected. The damaged/rejected material shall be lifted by the supplier within 30 days from the date of receipt of notice to that effect from the concerned consignee on reimbursement to the Board of the cost of the material / equipment, if any, already paid in terms of payment clause in the contract and actual expenses incurred by the consignee towards octroi, handling, demurrage/wharfage/under charges freight, insurance premium etc. The board shall not be responsible in any case for the loss, destruction, damage, deterioration of the material after expiry of the said 30 days period.

b) If the supplier fails to lift the material within this period, the material will remain with the Board at the cost and risk of the supplier. Supplier shall, therefore, be liable to pay ground rent @ 0.1% per day of purchase cost of the material to be lifted from the date of intimation of rejection till the actual date of lifting.

c) The Board will be also free to dispose of such material, after the period of said 30 days by Public auction/Tender notice/Destruction as may be deemed fit and storage charges @ 0.1 % per day of purchase cost will be recovered from the date of intimation of rejection of materials till the date of realization of the sale amount/physical removal of the material besides the actual expenses incurred as referred to at (a) above.

d) Not withstanding what is contended in the foregoing clauses, the supplier shall be liable to pay the Board the cost and expenses incurred by the Board, if any, including ground rent and the same shall be appropriated and recovered from the sale proceeds.

In case the materials are not delivered within the period stipulated in the order, the supplier shall be liable to pay at the discretion of the competent authority of the Board, the liquidated damages to the Board upto half percent per week or part of week on the price subject to a maximum of cumulative ceiling of 10% reckoned on the contract value of such complete portion or section of the plant, equipment or material, delayed and also the portion supplied which could not be brought into commission due to any part thereof not having been delivered in time. Due consideration may be given in the levy of liquidated damages for reasons absolutely beyond the control of the supplier, for which documentary evidence shall be produced to the satisfaction of the competent authority of the Board.

The Board shall be entitled to deduct/recover the amount of liquidated damages from the current bill payable to the supplier or any other amount due or payable to him against this or any other contract.

For computing the liquidated damages for delayed supplies, the date of railway receipt or the date or receipt of materials at stores in case of road transport, shall be the date of delivery.

In case the Board does not arrange for inspection of material within 30 days from the date of receipt of inspection call in its office, the period of more than 30 days will not be considered for levy of liquidated damages. For computing the period taken for inspection in such cases, the relevant date mentioned in the inspection certificate issued by the inspecting officer would be considered.

The Board will not be in any way liable for non-performance either in whole or in part of any contract or for any delay in performance thereof in consequence of strikes, shortage, non-availability of raw materials, combination of labour or workmen or lockout, breakdown or accident to machinery or accidents of whatever nature, failure on the part of the railways to supply sufficient wagons to carry essential raw materials etc. and finished products from the stores,

subject to the provision and stipulation made in condition No. 28 as stated above i.e. Liquidated damages for late delivery.

It will be obligatory on the supplier to communicate the revocation of Power of Attorney, if any after submission of offer till the execution of contract failing which the act/s & action done by the agent/representative shall be deemed to be the valid act/s & action of the tenderer/ supplier.

Any disputes or difference arising under, out of or in connection with this tender or contract if concluded, shall be subject to the exclusive jurisdiction of the “Courts” in Mumbai.

In case the contractor/supplier fails to deliver the stores/material or any consignment thereof within the contracted period of delivery or in case the stores/materials are found not in accordance with the prescribed specification and the approved samples, the Board shall exercise in discretionary power either,

(a) to purchase from elsewhere, after giving due notice to the contractor, at the risk of contractor, such stores/material not so delivered or other of similar description, without canceling the contract in respect of consignment not yet due for delivery,

(b) to cancel the contract reserving Board’s right to recover damages, notwithstanding that the powers under (a) and (b) referred above are in addition to the rights and remedy available to the Board under the General Law of India relating to contract.

(i) In the event of risk purchase of stores of similar description, the option of the Board shall be final. In the event of action taken under (a) or (b) above, the supplier shall be liable for any loss which the Board may sustain on that account but the supplier shall not be entitled to any saving on such purchases made against default.

(ii) The decision of the board shall be final as regards the acceptability of the stores supplied by the supplier and the Board shall not be required to give any reason in writing or otherwise at any time for the rejection of the stores/materials.

CONDITIONS OF TENDER AND SUPPLY

AND