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MINUTES OF 4th BOARD OF CHIEF ENGINEERS MEETING FOR THE

YEAR 2019 HELD ON 19.11.2019 @ 3.30PM IN THE BOCE CONFERENCE


HALL OF ENGINEER-IN-CHIEF (AW), IRRIGATION & CAD
DEPARTMENT, ERRUM MANZIL, HYDERABAD.

At the outset the Engineer-in-Chief (AW), Chairman, Board of Chief Engineers


has welcomed all the participants and placed the following agenda for discussions by
the members of the Board of Chief Engineers. The names of the officers attended the
meeting is appended vide Annexure-I. The Engineer-in-Chief (AW) has initiated the
discussions.

Agenda item No – 1:

Irrigation & CAD Dept., – 10% Reservations to Waddera caste people in Govt.,
Contract works – Represented by the Vice Chairman, Telangana State Planning
Board – Placed the issue before Board of Chief Engineers - For discussion and
necessary recommendations – Regarding

Proposed by Engineer-in-Chief (Irrigation), I&CAD Department

The Vice Chairman, Telangana State Planning Board vide letter dated
21.09.2019 addressed to the Hon’ble Chief Minister, Telangana State has submitted
the following in the subject issue.

1) It is represented by the President, Telangana Waddera Sangam that since


decades the waddera caste people are working in construction fields like
masons, earth workers etc., mainly in digging wells, kuntas, railway lines and
Irrigation projects.
2) It is informed that, in the combined state, there was a GO Ms No 398, dated
05.09.1990 in which waddera have been provided 15% reservation in contract
works along with SCs, STs.
3) Recently, the Telangana Govt., has changed the earlier GO and issued new GO
Ms No 59, dated 21.05.2018 in which 15% to SCs and 6% to STs and only 3%
to Waddera and Sagara(Uppara) caste people.
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4) Wadderas are requesting for 10% reservation in Govt., Contract works as their
entire community is working in construction field only.
5) In this connection, the Vice Chairman, Telangana State Planning Board has
requested the Hon’ble Chief Minister, Telangana State to kindly consider the
request of Waddera sangam and arrange to issue appropriate orders duly taking
into consideration of their profession.

In this regard, the following is furnished in the matter.

i) Earlier, under GO Ms No 29 dated 26.05.2017, 15% of works were


earmarked to the individuals belonging to SC/ST/Waddera/Sagara
contractors costing up to Rs 20.00 lakh and SC/ST/Waddera/Sagara Co-
operative societies up to Rs 50.00 lakh on online procurement and all other
methods of procurement.
ii) In the above GO Ms 29, no specific bifurcation was mentioned among these
SC/ST/Waddera/Sagara communities in 15% of reserved/earmarked works
and all these communities are equally eligible to bid for the above reserved
works.
iii) Based on the representation of the Co-ordinator, DICCI, Telangana
chapter and subsequent recommendations of Board of Chief
Engineers(BOCEs) in the matter, the Government vide GO Ms No 59,
I&CAD(Reforms) Dept., dated 21.05.2018 have issued orders extending
certain relaxations/concessions to SC/ST/Waddera communities in public
works of all Engineering Depts.
iv) In the above GO Ms No 59, I&CAD(Reforms) Dept., dated 21.05.2018 the
works costing up to Rupees one crore (ECV) are reserved to
SC/ST/Waddera/Sagara communities as detailed below.
a) 15% to SCs
b) 6% to STs
c) 3% to Waddera/Sagara

v) The above reservation of works to SC/ST/Waddera/Sagara communities


was recommended during the Board of Chief Engineers (BOCEs) meeting
dated 24.10.2017 and ENCs level meeting dated 05.12.2017 and accorded
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by the Government vide GO Ms No 59, I&CAD(Reforms) Dept., dated
21.05.2018.
vi) Presently, the GO Ms No 59 is in force on implementation of
relaxations/concessions to SC/ST/Waddera communities.

The subject issue along with copies of GO Ms No 398 I&CAD (Projects wing –
CCD) Dept, dated 05.09.1990, GO Ms No 29, I&CAD(Reforms) Dept., dated
26.05.2017, GO Ms No 59, I&CAD(Reforms) Dept., dated 21.05.2018 and
representation of Vice Chairman, Telangana State Planning Board are placed
before Board of Chief Engineers for its discussion and necessary recommendations
in the matter.

The Board of Chief Engineers has discussed the issue in detail duly
reviewing the present reservations of works earmarked under GO Ms No 59,
I&CAD(Reforms) Dept., dated 21.05.2018 to SC/ST/Waddera/Sagara
communities and opined that majority population of Waddera/Sagara
community is solely dependent on earthwork, stone quarrying and other
construction related works.
After detailed deliberations in the matter duly considering their major
dependency on construction oriented works, the BOCEs has recommended to
increase the present reservation of works of Waddera/Sagara community from
3% to 5% under GO Ms No 59, I&CAD(Reforms) Dept., dated 21.05.2018
without affecting the reserved works of SC/ST communities in the said GO and
directed to address the Government for necessary orders in the matter.

Action: Engineer-in-Chief (Irrigation), I&CAD Department


Agenda Item No 2:

Mission Bhagiratha - Evaluation of Embedded taxes - GST pertaining to E&M


works and other civil works - Submitted CE's Committee opinion- Perusal and
acceptance - Placed before the Board of Chief Engineers - For discussion and
necessary recommendations – Regarding.
Proposed by Engineer-in-Chief, Mission Bhagiratha Dept

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The Chief Engineer-II, Mission Bhagiratha Dept., vide letter dated 18.11.2019
has reported the following on the subject issue as below.
i) Under Mission Bhagiratha for the Electro-Mechanical works the tenders were
called for and agreements were entered in the VAT regime, with tender clause:
"The contractor can avail the exemption from payment of Central Excise Duty
for all pumping machinery and ancillary equipment".
ii) The new tax regime in the form of Goods and Services tax (GST) came into
effect from 1st July 2017 for all the new & ongoing works and there is no CED
exemption after 1st July 2017.
iii) Therefore, the agencies had to procure the EM equipments duly paying the
GST as applicable.
iv) The Govt. of T.S. has issued G.O. Ms. No. 67 of Irrigation & CAD (Reforms)
Dept., Dated: 04-July-2018, about the procedure taxation of GST to be
followed. And, in continuation of the procedures to follow various meetings of
BOCE, all engineering dept. has carried out and given directions to follow & to
release GST to agencies. And, the department is releasing interim payment of
5% towards GST as per Memo No. 33/WP/A2/2017, dated: 08-08-2017to the
agencies.
v) Now, the agencies are requesting for total reimbursement of GST, for arriving
at the GST payable to the agencies, the embedded tax included in the rates shall
be deducted to obtain the basic rates.
vi) The embedded taxes are as follows as per SSR.
Sl. No. Item Embedded
1 LT Panel boards 27%
2 Street light poles 17%
3 LT/HT Cables 17%
4 Illumination including switchgears 23%
5 GI & Copper strips 13%
6 Earthing accessories 10%
7 Fire and safety equipment 28%

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vii) For the other items which are not covered in the SSR,
1. HT VCB panels.
2. Battery and battery charger.
3. HSC/VT pump sets.
4. Submersible/Vaccum/Dewatering/Desilting pumps.
5. Instrumentation items.

the CE's committee has approved the rates for above items, for which the CED
and CST are not mentioned separately.

viii) However, as the agreements were concluded prior to the GST, the agencies
are requesting to adopt VAT as 5% for the materials procured in the
Telangana State and 2% CST for the items procured in other states, as
embedded tax.
ix) As such the CE's committee has discussed and opined that
a) Out of 27 items, which were in Electro mechanical estimates, only 7 were
available in TS, with 5% to 12.5% VAT and other 20 items were procured
from other states with 2% CST.
b) Therefore, while calculating the embedded tax, 5% VAT may be considered
for the materials procured in Telangana state and 2% embedded tax may be
considered for items procured from other states.

In this regard, it is requested to discuss the issue in the Board of Chief Engineers
for necessary instructions.
The copies of Chief Engineer-II, MB Dept., letter dated 18.11.2019 and minutes of
CEs Committee of Mission Bhagiratha Dept was placed before Board of Chief
Engineers for its discussion and necessary recommendations in the matter.

The Board of Chief Engineers has deliberated the issue in detail and after
detailed discussions in the matter it is clarified that as per orders of the
Government under G.O. Ms. No. 67 of Irrigation & CAD (Reforms) Dept.,
Dated: 04.07.2017 and subsequent comprehensive guidelines communicated by
the BOCEs in the matter, all the tax elements which are included in the estimate
rates of respective items are to be evaluated and deducted as embedded taxes.
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Further, BOCEs opined that any specific requirement of embedded tax
rates other than SoR items may be worked out and approved by the concerned
estimate sanctioning authority and communicated to the agreement authorities
duly following instructions under G.O. Ms. No. 67 of Irrigation & CAD
(Reforms) Dept., Dated: 04.07.2017 and BOCEs guidelines communicated in the
matter.
Action: Engineer-in-Chief, Mission Bhagiratha Dept

Agenda Item No 3 :

I & CAD Dept – SC/ST Contractors Development Policy- Public


works - Concessions to SC / ST Con tractors - Implementation of the GO
Ms.No.59 - Concessions/Relaxations in respect of reservation of works
to SC / ST contractors in public works - Detailed Methodology for
implementation - Requested by the CE/Civil, TSTRANSCO - Placed before the
Board of Chief Engineers meeting dated 23.03.2019 – Furnishing of Feedback from
concerned Division/Circle level on current implementation of GO Ms 59 – For
discussion and recommendations – Regarding.

Proposed by Engineer-in-Chief (Irrigation), I&CAD Department

As per Govt Memo No 8612/Reforms/2018, dated 03.10.2018 all the


ENCs/CES of Irrigation & CAD Department were requested to follow the orders of
the Government issued under GO Ms No 59, I & CAD (Reforms) Dept., dated
21.05.2018 and furnish the action taken report (ATR) in the subject matter,
immediately, for onward submission of the same to the Government.

Further, as per directions of BOCEs meeting held on 23.03.2019 and vide


T.O letter 8th cited all the ENCs/CEs were requested to furnish feedback from
Division/Circle level on current implementation of GO Ms 59 for its examination
and discussion in subsequent BOCEs meeting.
In this regard, the following ENCs/CEs of I&CAD Dept., have reported in the
matter.
i) Chief Engineer, QC, I&CAD Dept

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ii) Chief Engineer, ISWR I&CAD Dept

iii) Chief Engineer, GLIS I&CAD Dept

iv) Chief Engineer, PRLIS I&CAD Dept

v) Chief Engineer, TSERL, I&CAD Dept

vi) Engineer-in-Chief, Kaleshwaram, Hyderabad

vii) Chief Engineer, Khammam, I&CAD Dept

viii) Chief Engineer, Kanthalapally Project

ix) Chief Engineer, Mahaboobnagar, I&CAD Dept

x) Commissiner & PD, Godavari Basin, I&CAD Dept

The abstract details of Works entrusted to SC/ST/Waddera Communities under


the above Units/Projects was examined and certain discrepancies were observed in
earmarking/allotment of works to SC/ST/Waddera Communities at field level
(Division/Circle) as per provisions of GO Ms No 59.

In the earlier issued GO Ms No 29, I&CAD(Reforms) Dept., dated 26.05.2017


certain methodology was defined for allotment of 15% reserved works to
SC/ST/Waddera Communities as below.

All the Public Works Divisions/Circles shall ensure that any one work out of every
seven such works within the range of ₹20 lakhs for individuals and ₹50 lakhs for
societies are automatically earmarked for limited competition among
SCs/STs/Wadera/ Sagara (Uppara) communities at the e-procurement platform.
ITE&C Department shall take necessary steps to modify the software for this purpose.
In exceptional cases of offline tender, a register will be maintained at the level of each
tender inviting authority.

Based on the nature and value of works, the concerned Executive


Engineers/Superintending Engineer may decide and earmark any one work (i.e.

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costing up to ₹ 50.00 lakh for Societies and ₹ 20.00 lakh for individuals) to
SCs/STs/Wadera/Sagara (Uppara) communities within a cluster of 7 works

The above such methodology is not stipulated in the present GO Ms 59 for allotment
of works to SCs/STs/Wadera/Sagara communities.

In GO Ms 59 the works costing up to Rupees one crore (ECV) are reserved to


SC/ST/Waddera/Sagara communities as detailed below.

i) 15% to SCs

ii) 6% to STs

iii) 3% to Waddera/Sagara Communities.

Further, the following is stipulated under Para-7, Page No 2 of GO Ms No 59,


I&CAD(Reforms) Dept., dated 21.05.2018 as below.

“Works for SC/STs could be pooled together. This will ensure additional pool of
contractors generated enough authentication and it should be reviewed after
6 months from the date of implementation”

The Chief Engineer/Civil, TS TRANSCO vide letters dated 15.12.2018 and


22.10.2019 has also requested to communicate detailed methodology for earmarking
of works to SC/ST/Waddera/Sagara communities as per provisions of GO Ms No 59,
I&CAD(Reforms) Dept., dated 21.05.2018

In this regard, to avoid confusion in implementation of GO Ms 59 at Division/Circle


level the following methodology is proposed in roaster pattern considering 100 No of
works in serial to satisfy individual reservations (i.e., 15%, 6% and 3%) to
SC/ST/Waddera/Sagara communities in earmarking of works as per provisions of
GO Ms No 59, I&CAD(Reforms) Dept., dated 21.05.2018.

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Proposed Methodology for Entrustment of Works costing (ECV) up to
Rs 1.00 crore to SC/ST/Waddera(Sagara) Communities as per
Go Ms No 59 I&CAD(Reforms) Dept, dated 21.05.2018

S No of Remarks
SC ST Waddera(Sagara)
invited (Entrustment of works
(15%) (6%) (3%)
Works as per roaster)

1 General/Open
2 General/Open
3 General/Open
4 General/Open
5 General/Open
6 General/Open
7 1 SC
8 General/Open
9 General/Open
10 General/Open
11 General/Open
12 General/Open
13 General/Open
14 1 SC
15 General/Open
16 1 ST
17 General/Open
18 General/Open
19 General/Open
20 General/Open
21 1 SC
22 General/Open
23 General/Open

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24 General/Open
25 General/Open
26 General/Open
27 General/Open
28 1 SC
29 General/Open
30 General/Open
31 General/Open
32 1 ST
33 1 Waddera/Sagara
34 General/Open
35 1 SC
36 General/Open
37 General/Open
38 General/Open
39 General/Open
40 General/Open
41 General/Open
42 1 SC
43 General/Open

44 General/Open

45 General/Open
46 General/Open
47 General/Open
48 1 SC
49 1 ST
50 General/Open
51 General/Open

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52 General/Open
53 General/Open
54 General/Open
55 1 SC
56 General/Open
57 General/Open
58 General/Open
59 General/Open
60 General/Open
61 General/Open
62 1 SC
63 General/Open
64 1 ST
65 General/Open
66 1 Waddera/Sagara
67 General/Open
68 1 SC
69 General/Open
70 General/Open
71 General/Open
72 General/Open
73 General/Open
74 1 SC
75 General/Open
76 General/Open
77 General/Open
78 General/Open
79 General/Open
80 1 ST

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81 1 SC
82 General/Open
83 General/Open
84 General/Open
85 General/Open
86 General/Open
87 General/Open
88 1 SC
89 General/Open
90 General/Open
91 General/Open
92 General/Open
93 General/Open
94 General/Open
95 1 SC
96 1 ST
97 General/Open
98 General/Open
99 1 Waddera/Sagara
100 1 SC
Total 15 6 3 24

Directions to Tender inviting authorities:


1. The above cycle of 100 works in serial shall be maintained till its completion
irrespective of Financial year to satisfy the provisions of GO Ms No 59 and
repeated in similar fashion.
2. The Tender inviting authority (Division/Circle/HODs level) shall maintain the
above Register of works invited to ascertain the reservation of works as per
provisions of GO Ms No 59.

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3. The Tender inviting authority shall have discretion in reservation of works to
the said communities as per nature and suitability of works and ensure that any
5 works to SCs, 2 works to STs and one work to Waddera/Sagara communities
is allotted within a cluster of 33 works. The decision of Tender inviting
authority is final and binding in this regard.
4. In the NITs of such earmarked works, it may be mentioned under name of
work that (“Invited under earmarked works - SCs/STs/ Waddera/Sagara
(Uppara) communities (as the case may be) are only eligible to participate")

The subject issue along with copies of Govt Memo 8612/Reforms/2018, dated
03.10.2018, CE/Civil, TSTRANSCO letter dated 22.10.2019, GO Ms No 29,
I&CAD(Reforms) Dept., dated 26.05.2017 and GO Ms No 59, I&CAD(Reforms)
Dept., dated 21.05.2018 are placed before Board of Chief Engineers for its discussion
and necessary recommendations in the matter.

The Board of Chief Engineers has deliberated the matter in detail and
agreed for the methodology proposed by the Engineer-in-Chief (I), I&CAD
Department for implementation of GO Ms No 59, I&CAD(Reforms) Dept., dated
21.05.2018 by all Engineering Departments.
Further, BOCEs has directed to add the following additional para under
Directions to Tender inviting authorities as below:
“The Tender inviting authority to the extent possible shall judiciously
earmark/allocate works to SC/ST/Waddera(Sagara) Communities such that the
works allotted to these communities broadly satisfies both in numerical and
financial terms as per their share of reservation in the said GO.”
Further, BOCEs has directed all the members to communicate necessary
instructions to the concerned under their control for scrupulous implementation
of orders of the Government under GO Ms No 59, I&CAD(Reforms) Dept.,
dated 21.05.2018.
Action: Engineer-in-Chief (Irrigation), I&CAD Department

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Agenda Item No 4 :

Empanelment of Vendors for supply of TMT Reinforcement Steel for the Public
works of all Engineering Departments, Govt of Telangana – Inspection of Steel
Manufacturing Plants - Technical Committee Constituted by the Govt – Inspection of
M/s Electrosteel Steels Ltd, located at Siyaljori, Bokaro, by the Technical
Committee on 26.07.2019 – Inspection Report/Recommendations of Technical
committee - Placed before the Board of Chief Engineers - For examination and
specific recommendations to include “V-XEGA” under Empaneled Vendors in SoR of
Telangana –Regarding
Proposed by Engineer-in-Chief (AW), I&CAD Dept
and Chairman, Technical Committee

The Government have constituted the following Technical Committee vide


Govt Memo No 1844/Reforms/A1/2017, dated 10.03.2017 for inspection of Steel
Manufacturing Plants to examine their credentials, manufacturing process and
Quality standards etc., for considering them as Empaneled Vendors for supply of
Reinforcement/Structural Steel for the Public works taken up by various Engineering
Departments under Government of Telangana.

Engineer-in-Chief (AW) I &CAD Dept --- Chairman

Engineer-in-Chief (NH & Buildings), R&B Dept --- Member

Chief Engineer (V&QC), RWS & S Dept --- Member

Chief Engineer, TSERL, I&CAD Dept --- Member

Based on the representation of M/s Electrosteel Steels Ltd the above


Technical Committee has inspected the said Industry located at Siyaljori, Bokaro,
Jharkhand on 26.07.2019 to examine its credentials for considering under
Empanelled Vendors for supply of its Reinforcement Steel in the brand name of
“V-XEGA” .

i) The following officials of M/s Electrosteel Steels Ltd have accompanied


the Technical Committee during inspection of Plant.
Sri G.Vijay Kumar, CAM-Sales & Marketing,

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Sri Chanchal Goswami, AM Sales & Marketing,
Sri Nagendra Kumar, Head- Approvals and Registrations,
Sri Allaka Sudhakar Product Head- TMT,
Sri Shashwat Pachisia Chief Marketing Officer .
ii) As per the documents furnished by the M/s Electrosteel Steels Ltd the
Committee has noted the following.
a) M/s Electrosteel Steels Ltd is found to be BIS certified Primary Steel
producer having its validity of license for manufacturing of HYSD
TMT bars up to 31.12.2020
b) List of Approvals:
1. The M/s Electrosteel Steels Ltd is observed to be a well-
established Company with strong client base scattered all over
India and the same have been verified based on Vendor approvals
obtained from their clients.
2. The Committee has gone through the various approvals obtained
by The M/s Electrosteel Steels Ltd from Central & State
Government Departments/Corporations including other PSUs
and listed as below.
 JPC Notification (Ministry of Steel)
 Engineers India Ltd, MECON Limited.
 Ministry of Defense for Defense works, Border Roads
Organization.
 RDSO, Ministry of Railways, RITES, RVNL.
 Eastern, Western, Northern and South Eastern Railways
 Delhi, Lucknow, Nagpur, Pune & Mumbai Metro Rails
 BARC, BHEL, NTPC, Power Grid Corp, APGENCO, APPDCL,
APTIDCO, AP State Housing Corp & TN Transco,
 PW Depts of Govt of West Bengal, Meghalaya, Assam, Haryana
Approvals from other State PWDs:
The Company (Electrosteel Steels) is empaneled under
Reinforcement steel in
 PWD Assam,
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 PWD Jharkhand,
 PWD West Bengal,
 PWD Haryana, Govt. of J&K
 PWD Meghalaya, Sikkim
iii) Procurement of Raw materials:
As informed by the Company officials, The M/s Electrosteel Steels Ltd
is procuring its Raw materials as detailed below.
 Iron ore from RUNGTA Mines in Odisha.
 Coal imported from Australia.
iv) Production Process:
The Committee had witnessed the following production process:
1. Raw Material Handling Section for handling of procured raw
materials such as Iron ore, Coal, Limestone, Dolomite, Iron ore Fines,
etc.
2. Blast Furnace and auxiliary units for preparation of PIG IRON: The
Blast Furnace reduces Iron ore to Molten Pig Iron with the help of Coke
and Dolomite.
3. SMS (Steel Melting Shop) for conversion of Pig iron into steel:
a) The pig iron is then converted into fully kilned steel in
CONVERTER and refined to achieve the desired chemistry.
b) Necessary alloys like Ferro Silicon, Ferro Manganese, Copper,
Chromium and Aluminum, etc., are added in the furnace to attain the
required chemical properties.
4. Billets Casting Unit:
The molten steel is then transported to the billets casting unit with the
help of ladles and tundish to manufacture 125 & 150 sq.mm billets.
v) Rolling Mills:
The Company is adopting Thermex process for manufacturing of TMT
bars which is a patented Technology from HSE, Germany under the
brand name – “Thermex”.

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vi) Quality Control Process:
The M/s Electrosteel Steels Ltd is having in-house installation of
sophisticated quality control equipment’s like UTM, Spectrometer,
Microscope, and other chemical laboratories for in-situ testing of
metallurgical, chemical and physical properties manned by qualified
professionals.
After inspecting the Manufacturing process and Quality Labs, the
Technical Committee had witnessed the sample testing of Mechanical
and Chemical parameters of 12 mm TMT bars. The results are
tabulated and found to be in order as per IS – 1786:2008 (Test reports
are enclosed).
vii) Licenses and other Certificates:
The Company is having the following Licenses and other Certificates
which are verified by the Committee.

¤ ISO 9001:2015: Certificate No IRQS/1610847 Dt.


19/10/2013 (Valid up to 18.10.2019)

¤ ISO 14001:2015: Certificate No IRQS/18030731 Dt.


04/06/2015 (Valid up to 03.06.2021)

¤ ISO 45001:2018: Certificate No IRQS/1840732 Dt.


(OHSAS) 04/06/2015 (Valid up to 03.06.2021)

¤ BIS LICENSES: i) For Billets IS No. 2830:1992 vide


License No CM/L 5730668 and
Endorsement No 06, Dated. 30.03.2019
valid up to 31.03.2020

ii) HYSD TMT Re-Bars IS No 1786:2008


vide License No CM/L 5653878 and
Endorsement No 10, dated 02.04.2019
Valid up to 31.03.2020

¤ Grade & Size: Fe500D- 8mm to 40mm dia.


¤ Relevant Calibration certificates are
enclosed

viii) Product Range:


The product range of the Company includes the following:
 Pig Iron
 MS Billets

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 HT Billets
 TMT Re Bars- 8mm to 40mm Fe500D/Fe550D Grade
 CRS TMT Re Bars- 8mm to 40mm
 Wire Rods- 5.5mm to 16mm

ix) Recommendations:
After detailed inspection of the M/s Electrosteel Steels Ltd on
Dt.26.07.2019 and subsequent scrutiny of documents furnished by them, the
Technical Committee has recommended the M/s Electrosteel Steels Ltd for
incorporating under approved Empaneled Vendors for supply of its
Reinforcement steel in the brand name of “V-XEGA” for the Public works
taken up by various Engineering Departments under Government of Telangana
subject to the following conditions.
i) The Vendor approval has been accorded based on information and
documents furnished by the Company and the facilities available/shown
during inspection of said Plant.
ii) The supplied Reinforcement steel shall confirm to IS 1786:2008 (as
amended from time to time) and other relevant clauses of
MORTH/MORD/IRC etc.,
iii) This Vendor approval is accorded subject to timely renewal of BIS
licenses and other certificates including compliance of guidelines
stipulated by the Ministry of Steel, Government of India from time to
time.
iv) This Vendor approval will automatically stands cancelled without
assigning any reasons thereof, if any outsourcing of scrap or finished
product in the form of sponge iron/crude steel/billets etc., is found to be
taken up by said Company during course of time thereby affecting the
current status of manufacturing methodology and quality of its products.
v) This Vendor approval has been accorded on the condition of
maintaining of quality intact. Any negative feedback on quality/failure
history of The M/s Electrosteel Steels Ltd (V-XEGA) products at later
date will leads to automatic cancellation of this approval.
vi) This Vendor approval is not blanket permission for direct adopting of V-
XEGA Steel in PWD works. The concerned Project authorities are
primarily responsible to ascertain the quality of Steel as per laid down

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Standards/Specifications before permitting in the works and shall always
have the access to verify the same as and when required.
vii) The concerned Departments do not take responsibility or advice for
adopting specific brand of steel among approved empaneled vendors.
The successful bidders/agencies of Public works are at liberty to procure
steel among approved empaneled vendors as per prevailing cost
economics, logistics and required quality norms.
viii) The Renewal of Vendor approval for the private Steel Companies
(Primary producers) i.e., other than PSUs will be done for every 2 (two)
years after submission of latest BIS licenses and other requisite
certificates produced by the Companies, otherwise the accorded Vendor
approval will automatically stands cancelled by the due date of renewal
without assigning any reasons.

Further, the Committee has opined to place its Inspections report along with
recommendations before Board of Chief Engineers (BOCEs) during its ensuing
meeting with a request for examination of the same and specific recommendations on
proposed incorporation of “V-XEGA” among existing Empaneled Vendors of
Reinforcement Steel in SoR of Telangana.

The above issue along with Inspection Report of Technical Committee and
credentials of M/s Electrosteel Steels Ltd is placed before Board of Chief Engineers
(BOCEs) for its examination and necessary recommendations in the matter.

The Board of Chief Engineers has deliberated the issue in detail duly
examining the Inspection Report of Technical Committee along with Industry
Profile and other credentials as furnished by M/s Electrosteel Steels Ltd and it is
agreed to recommend “V-XEGA” as approved Empaneled Vendor for supply of
Reinforcement steel for the Public works taken up by various Engineering
Departments under Government of Telangana subject to fulfilment of conditions
as stipulated by the Technical Committee in their Inspection Report and to
incorporate M/s Electrosteel Steels Ltd in SOR of Telangana among existing
Empaneled Vendors.
Action: Engineer-in-Chief (AW) I & CAD Dept.
and Chairman, Technical Committee

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Agenda Item No 5 :

Empanelment of Vendors for supply of TMT Reinforcement Steel for the Public
works of all Engineering Departments, Govt of Telangana – Inspection of Steel
Manufacturing Plants - Technical Committee Constituted by the Govt – Inspection of
M/s Jai Balaji Industries Ltd, Banskopa, Durgapur, West Bengal, by the
Technical Committee on 30.08.2019 – Inspection Report/Recommendations of
Technical committee placed before the Board of Chief Engineers - For examination
and specific recommendations to include “Balaji Shakti “under Empaneled Vendors
in SoR of Telangana – Placed before BOCEs - For discussion & necessary
recommendation –Regarding
Proposed by Engineer-in-Chief (AW), I&CAD Dept
and Chairman, Technical Committee
The Government have constituted the following Technical Committee vide Govt
Memo No 1844/Reforms/A1/2017, dated 10.03.2017 for inspection of Steel
Manufacturing Plants to examine their credentials, manufacturing process and Quality
standards etc., for considering them as Empanelled Vendors for supply of
Reinforcement/Structural Steel for the Public works taken up by various Engineering
Departments under Government of Telangana.

Engineer-in-Chief (AW) I &CAD Dept --- Chairman


Engineer-in-Chief (NH & Buildings), R&B Dept --- Member
Chief Engineer (V&QC), RWS & S Dept --- Member
Chief Engineer, TSERL, I&CAD Dept --- Member

Based on the representation of M/s Jai Balaji Industries Ltd,., the above
Technical Committee has inspected the said Industry located Banskopa, Durgapur,
West Bengal on 30.08.2019 to examine its credentials for considering under
Empanelled Vendors for supply of its Reinforcement Steel in the brand name of
“BALAJI SHAKTI” .

i) The following officials of M/s Jai Balaji Industries Ltd have


accompanied the Technical Committee during inspection of Plant
Shri Anshuman Dalmia Vice President of TMT Division,
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Shri. Mukesh Dubey TMT Plant President,
Shri. Y. Sampat Rao DRI Unit Incharge,
Shri. Debasis Sen BF-Unit Incharge,
Shri. Ramji Pandey Billet Unit Incharge,
Shri. Dharamvir Singh Rolling Mill-1 Incharge
Shri. Rajesh Singh Rolling Mill-2 Incharge,
Shri. S.K. Singh Quality Lab In charge.
ii) As per the documents furnished by the M/s Jai Balaji Industries Ltd
the Committee has noted the following.
a) M/s Jai Balaji Industries Ltd is found to be BIS certified Primary
Steel producer having its validity of license for manufacturing of
HYSD TMT bars up to 15.12.2019
b) List of Approvals:
1. The M/s Jai Balaji Industries Ltd is observed to be a well-
established Company with strong client base scattered all over
India and the same have been verified based on Vendor approvals
obtained from their clients.
2. The Committee has gone through the various approvals obtained
by the M/s Jai Balaji Industries Ltd from Central & State
Government Departments/Corporations including other PSUs
and listed as below.
 Military Engineering Services
 National Highway Authority of India
 Construction Management Team
 Housing Directorate Govt. of West Bengal
 GAIL (India) Limited.
 Chhattisgarh State Power Generation Company Ltd.
 BCPL Project, Lepetkata Dibrugarh
 Aarvee Associates
 Public Works Department, Berolampore, Murshidabad.
 Rajasthan Urban Infrastructure Development Project, Jaipur

21
 U.P Jalnigam , Agra

iii) Procurement of Raw materials:


As informed by the Company officials, the M/s Jai Balaji Industries Ltd
is procuring its Raw materials as detailed below.
Iron ore from the Rameshwara Jute Mills Ltd (RJML) Baraiburu
– Tatiba Iron & Mn Mines, Baraiburu Via Barajamda District,
West Singhbhum, Jharkhand, M/s Essel Mining & Industries Ltd,
Keonjhal Odisha etc.,
iv) Production Process:
The Committee had witnessed the following production process:
1. DRI (Direct Reduction Iron) Plant for preparation of sponge Iron:
The DRI Plant reduces Iron ore to Metallic (Sponge iron) with the
help of Coal and Dolomite i.e., oxidized and deoxidized.
2. SMS (Steel Melting Shop) for manufacturing of Billets:
a) The reduced iron (Sponge Iron) is then melted in Electric Arc
Furnace (EAF) and refined to achieve the desired chemistry.
b) Necessary alloys like Ferro Silicon, Ferro Manganese, Copper,
Chromium and Aluminum etc., are added in the furnace to attain
the required chemical properties.
3. Billets Casting Unit:
The molten steel is then transported to the billets casting unit with the
help of crucibles to manufacture 100 – 130 sq.mm billets.

v) Rolling Mills:

The Company is adopting Thermex process for manufacturing of TMT


bars which is a patented Technology from HSE, Germany under the
brand name – “Thermex”.
vi) Quality Control Process:

The M/s Jai Balaji Industries Ltd is having in-house installation of


sophisticated quality control equipments like UTM, Spectrometer,
Microscope, and other chemical laboratories for in-situ testing of
22
metallurgical, chemical and physical properties manned by qualified
professionals.
After inspecting the Manufacturing process and Quality Labs, the
Technical Committee had witnessed the sample testing of Mechanical
and Chemical parameters of 20 mm TMT bars. The results are
tabulated and found to be in order as per IS – 1786:2008 (Test reports
are enclosed).

vii) Licenses and other Certificates:

The Company is having the following Licenses and other Certificates


which are verified by the Committee.

¤ ISO 9001:2015: Certificate No KDACQ201704162 Dt.


06.04.2017 (Valid up to 05.04.2020)

¤ ISO 14001:2015: Certificate No IESC201805006 Dt.


08.05.2018 (Valid up to 07.05.2021)

¤ ISO 18001:2007: Certificate No IOSC201805004 Dt.


(OHSAS) 08.05.2018 (Valid up to 07.05.2021)

¤ BIS LICENSES: i) For Billets IS No. 2830:1992 vide


License No CM/L 5330854 and
Endorsement No 08, Dated. 16.04.2018
valid up to 15.04.2020

ii) HYSD TMT Re-Bars IS No 1786:2008


vide License No CM/L 5230850 and
Endorsement No 15, dated 19.12.2017
Valid up to 15.12.2019

¤ Grade & Size: Fe500D- 8mm to 40 mm dia


¤ THERMEX Relevant Calibration certificates are
enclosed

viii) Product Range:


The product range of the Company includes the following:
 Sponge Iron

23
 Pig Iron
 M S Billets
 Ferro Alloys
 TMT Re Bars - 8mm to 40 mm

ix) Recommendations:
After detailed inspection of the M/s Jai Balaji Industries Ltd on
Dt.30.08.2019 and subsequent scrutiny of documents furnished by them, the
Technical Committee has recommended the M/s Jai Balaji Industries Ltd for
incorporating under approved Empanelled Vendors for supply of its
Reinforcement steel in the brand name of “BALAJI SHAKTI” for the Public
works taken up by various Engineering Departments under Government of
Telangana subject to the following conditions.
i) The Vendor approval has been accorded based on information and
documents furnished by the Company and the facilities available/shown
during inspection of said Plant.
ii) The supplied Reinforcement steel shall confirm to IS 1786:2008
(as amended from time to time) and other relevant clauses of
MORTH/MORD/IRC etc.,
iii) This Vendor approval is accorded subject to timely renewal of BIS
licenses and other certificates including compliance of guidelines
stipulated by the Ministry of Steel, Government of India from time to
time.
iv) This Vendor approval will automatically stands cancelled without
assigning any reasons thereof, if any outsourcing of scrap or finished
product in the form of sponge iron/crude steel/billets etc., is found to be
taken up by said Company during course of time thereby affecting the
current status of manufacturing methodology and quality of its products.
v) This Vendor approval has been accorded on the condition of
maintaining of quality intact. Any negative feedback on quality/failure
history of The M/s Jai Balaji Industries Ltd (BALAJI SHAKTI)

24
products at later date will leads to automatic cancellation of this
approval.
vi) This Vendor approval is not blanket permission for direct adopting of
BALAJI SHAKTI Steel in PWD works. The concerned Project
authorities are primarily responsible to ascertain the quality of Steel as
per laid down Standards/Specifications before permitting in the works
and shall always have the access to verify the same as and when
required.
vii) The concerned Departments do not take responsibility or advice for
adopting specific brand of steel among approved empanelled vendors.
The successful bidders/agencies of Public works are at liberty to procure
steel among approved empanelled vendors as per prevailing cost
economics, logistics and required quality norms.
viii) The Renewal of Vendor approval for the private Steel Companies
(Primary producers) i.e., other than PSUs will be done for every 2 (two)
years after submission of latest BIS licenses and other requisite
certificates produced by the Companies, otherwise the accorded Vendor
approval will automatically stands cancelled by the due date of renewal
without assigning any reasons.
Further, the Committee has opined to place its Inspections report along with
recommendations before Board of Chief Engineers (BOCEs) during its ensuing
meeting with a request for examination of the same and specific recommendations on
proposed incorporation of “BALAJI SHAKTI” among existing Empaneled Vendors
of Reinforcement Steel in SoR of Telangana.

The above issue along with Inspection Report of Technical Committee and
credentials of M/s Jai Balaji Industries Ltd is placed before Board of Chief
Engineers (BOCEs) for its examination and necessary recommendations in the matter.

The Board of Chief Engineers has deliberated the issue in detail duly
examining the Inspection Report of Technical Committee along with Industry
Profile and other credentials as furnished by M/s Jai Balaji Industries Ltd and it

25
is agreed to recommend “BALAJI SHAKTI” as approved Empaneled Vendor
for supply of Reinforcement steel for the Public works taken up by various
Engineering Departments under Government of Telangana subject to fulfilment
of conditions as stipulated by the Technical Committee in their Inspection Report
and to incorporate M/s Jai Balaji Industries Ltd in SOR of Telangana among
existing Empaneled Vendors.
Action: Engineer-in-Chief (AW) I & CAD Dept.
and Chairman, Technical Committee

Agenda Item No 6 :

Empanelment of Vendors for supply of TMT Reinforcement Steel for the Public
works of all Engineering Departments, Govt of Telangana – Inspection of Steel
Manufacturing Plants - Technical Committee Constituted by the Govt – Inspection of
M/s Jindal Steel & Power Ltd (Jindal Panther), Angul, Odisha, by the Technical
Committee on 04.11.2019 – Inspection Report/Recommendations of Technical
committee placed before the Board of Chief Engineers - For examination and specific
recommendations to include “Jindal Panther “under Empaneled Vendors in SoR of
Telangana – Placed before BOCEs - For discussion & necessary recommendation –
Regarding
Proposed by Engineer-in-Chief (AW), I&CAD Dept
and Chairman, Technical Committee

The Government have constituted the following Technical Committee vide


Govt Memo No 1844/Reforms/A1/2017, dated 10.03.2017 for inspection of Steel
Manufacturing Plants to examine their credentials, manufacturing process and
Quality standards etc., for considering them as Empanelled Vendors for supply of
Reinforcement/Structural Steel for the Public works taken up by various
Engineering Departments under Government of Telangana.

Engineer-in-Chief (AW) I &CAD Dept --- Chairman

Engineer-in-Chief (NH & Buildings), R&B Dept --- Member

Chief Engineer (V&QC), RWS & S Dept --- Member

26
Chief Engineer, TSERL, I&CAD Dept --- Member

Based on the representation of M/s Jindal Steel & Power Ltd the above
Technical Committee has inspected the said Industry located at Angul, Odisha on
04.11.2019 morning to examine its credentials for considering under Empanelled
Vendors for supply of its Reinforcement Steel in the brand name of “JINDAL
PANTHER” and returned back on 05.11.2019.

i) The following officials of M/s Jai Balaji Industries Ltd have


accompanied the Technical Committee during inspection of Plant
Shri Gautam Jana, Manager (Sales & Marketing, Telangana).
ii) As per the documents furnished by the M/s Jindal Steel & Power Ltd
the Committee has noted the following.
a) M/s Jindal Steel & Power Ltd is found to be BIS certified Primary
Steel producer having its validity of license for manufacturing of
HYSD TMT bars.
b) List of Approvals:
1. The M/s Jindal Steel & Power Ltd is observed to be a well-
established Company with strong client base scattered all over
India and the same have been verified based on Vendor approvals
obtained from their clients.
 L&T Chennai,
 TATA ALDESA (JV),
 Kalpa Taru Power Transmission Ltd Kolkata,
 KEC International Limited Mumbai,
 Suzlon Gujarath
 Wind Park Ltd, Ahmadabad etc.,
2. The Committee has gone through the various approvals obtained
by the M/s Jindal Steel & Power Ltd from Central & State
Government Departments/Corporations including other PSUs
and listed as below.
 UP State Bridge Corporations, Lucknow
 BHEL Ltd, Kolkata
 TSGENCO, Hyderabad
27
iii) Procurement of Raw materials:
As informed by the Company officials, M/s Jindal Steel & Power Ltd
is procuring its Raw materials (Iron ore fines)
from KJST Mines, Odisha
iv) Production Process:
The Committee had witnessed the following production process:
1. DRI (Direct Reduction Iron) Plant for preparation of sponge Iron:
The DRI Plant reduces Iron ore to Metallic (Sponge iron) with the
help of Coal and Dolomite i.e., oxidized and deoxidized.
2. SMS (Steel Melting Shop) for manufacturing of Billets:
c) The reduced iron (Sponge Iron) is then melted in Electric Arc
Furnace (EAF) and refined to achieve the desired chemistry.
d) Necessary alloys like Ferro Silicon, Ferro Manganese, Copper,
Chromium and Aluminum etc., are added in the furnace to attain
the required chemical properties.
3. Billets Casting Unit:
The molten steel is then transported to the billets casting unit with the
help of crucibles to manufacture 100 – 130 sq.mm billets.
v) Rolling Mills:

The Company is adopting Thermex process for manufacturing of TMT


bars which is a patented Technology from HSE, Germany under the
brand name – “Thermex”.

vi) Quality Control Process:

The M/s Jindal Steel & Power Ltd is having in-house installation of
sophisticated quality control equipments like UTM, Spectrometer,
Microscope, and other chemical laboratories for in-situ testing of
metallurgical, chemical and physical properties manned by qualified
professionals.

28
After inspecting the Manufacturing process and Quality Labs, the
Technical Committee had witnessed the sample testing of Mechanical
and Chemical parameters of 16 mm TMT bars. The results are
tabulated and found to be in order as per IS – 1786:2008 (Test reports
are enclosed).
vii) Licenses and other Certificates:
The Company is having the following Licenses and other Certificates
which are verified by the Committee.

¤ ISO 17025:2005 General requirements for the competence of


testing &Calibration laboratories

¤ ISO 14001:2015: Certificate No EMS 620701 Dt:29-09-2017


(valid up to 28-09-2020)
¤ ISO 18001:2007: Certificate No OHS 620702 Dt. 29.09.2017
(OHSAS) (Valid up to 28.09.2020)
¤ BIS LICENSES: i) For Billets IS No. 2830:1992 vide
License No CM/L 8172069 and
Endorsement No 23, Dated. 16.04.2013
ii) HYSD TMT Re-Bars IS No 1786:2008
vide License No CM/L 5200040 and
Endorsement No 06, dated 22.07.2019
Valid up to 07.07.2021

¤ Grade & Size: Fe500D- 8mm to 36 mm dia


¤ THERMEX Relevant Calibration certificates are
enclosed
viii) Product Range:
The product range of the Company includes the following:
 Pig Iron
 Sponge Iron
 DRI
 Semi-finished Products (Bloom, Billet, Slab, Rounds)
 Rolled products (Plate, Coil, Beam, Column, Angle, Channel, Rail)
 TMT Re Bars - 8mm to 36 mm

29
ix) Recommendations:
After detailed inspection of The M/s Jindal Steel & Power Ltd on
Dt.04.11.2019 and subsequent scrutiny of documents furnished by them, the
Technical Committee has recommended M/s Jindal Steel & Power Ltd for
incorporating under approved Empanelled Vendors for supply of its
Reinforcement steel in the brand name of “JINDAL PANTHER” for the
Public works taken up by various Engineering Departments under Government
of Telangana subject to the following conditions.
i) The Vendor approval has been accorded based on information and
documents furnished by the Company and the facilities available/shown
during inspection of said Plant.
ii) The supplied Reinforcement steel shall confirm to IS 1786:2008
(as amended from time to time) and other relevant clauses of
MORTH/MORD/IRC etc.,
iii) This Vendor approval is accorded subject to timely renewal of BIS
licenses and other certificates including compliance of guidelines
stipulated by the Ministry of Steel, Government of India from time to
time.
iv) This Vendor approval will automatically stands cancelled without
assigning any reasons thereof, if any outsourcing of scrap or finished
product in the form of sponge iron/crude steel/billets etc., is found to be
taken up by said Company during course of time thereby affecting the
current status of manufacturing methodology and quality of its products.
v) This Vendor approval has been accorded on the condition of
maintaining of quality intact. Any negative feedback on quality/failure
history of the M/s Jindal Steel & Power Ltd with a brand name of
JINDAL PANTHER, products at later date will leads to automatic
cancellation of this approval.
vi) This Vendor approval is not blanket permission for direct adopting of
JINDAL PANTHER Steel in PWD works. The concerned Project
authorities are primarily responsible to ascertain the quality of Steel as
per laid down Standards/Specifications before permitting in the works
and shall always have the access to verify the same as and when
required.

30
vii) The concerned Departments do not take responsibility or advice for
adopting specific brand of steel among approved empanelled vendors.
The successful bidders/agencies of Public works are at liberty to procure
steel among approved empanelled vendors as per prevailing cost
economics, logistics and required quality norms.
viii) The Renewal of Vendor approval for the private Steel Companies
(Primary producers) i.e., other than PSUs will be done for every 2 (two)
years after submission of latest BIS licenses and other requisite
certificates produced by the Companies, otherwise the accorded Vendor
approval will automatically stands cancelled by the due date of renewal
without assigning any reasons.

ix) Further, the Committee has opined to place its Inspections report along
with recommendations before Board of Chief Engineers (BOCEs)
during its ensuing meeting with a request for examination of the same
and specific recommendations on proposed incorporation of “JINDAL
PANTHER” among existing Empaneled Vendors of Reinforcement
Steel in SoR of Telangana.

The above issue along with Inspection Report of Technical Committee and
credentials of M/s Jindal Steel & Power Ltd is placed before Board of Chief
Engineers (BOCEs) for its examination and necessary recommendations in the matter.

The Board of Chief Engineers has deliberated the issue in detail duly
examining the Inspection Report of Technical Committee along with Industry
Profile and other credentials as furnished by M/s Jindal Steel & Power Ltd and it
is agreed to recommend “JINDAL PANTHER” as approved Empaneled Vendor
for supply of Reinforcement steel for the Public works taken up by various
Engineering Departments under Government of Telangana subject to fulfilment
of conditions as stipulated by the Technical Committee in their Inspection Report
and to incorporate M/s Jindal Steel & Power Ltd in SOR of Telangana among
existing Empaneled Vendors.
Action: Engineer-in-Chief (AW) I & CAD Dept.
and Chairman, Technical Committee
31
Agenda Item No 7:

I&CAD Dept., - Labour Enactments- Certain changes / additions proposed to the


General Conditions / Special Conditions of the Agreement - Incorporation of common
and detailed version of enactment of Labour laws in all the Tender
documents/Agreement Bonds of Irrigation & CAD Department – Issue of
Employment-cum-wage card and Enrolment of building and other construction
workers as beneficiaries by the Contractors under the BOCW Act, 1996 - Proposed
to incorporate all relevant Labour laws/Acts with its amendments in SBD for all
Engineering Depts., - Requested by the Secretary, INTUC – Placed before BOCEs
– For comprehensive discussion and necessary recommendations –Regarding
Proposed by Engineer-in-Chief (Irrigation), I&CAD Dept

The Secretary, INTUC vide letters dated 26.09.2019 and 16.10.2019 has informed
that certain changes have been made to certain labour laws after the Standard Bid
Document has been accorded and these amended part of the labour laws/acts are to be
incorporated in the SBD for all Engineering Departments. The proposed relevant
Labour laws/Acts with its amendments as requested by Secretary, INTUC for
incorporation of the same in SBD are as detailed below.
(a) Employees compensation Act, 1923: The Act provides for compensation in
case if injury by accident arising out of and during the course of employment.
(b) Payment of Gratuity Act, 1972: Gratuity is payable to an employee under the
Act on satisfaction of certain conditions on separation if any employee has
completed 5 years of service or more, or on death, the rate of 15 days’ wages
for every completed year of service. The Act is applicable to all
establishments, employing 10 or more employees.
(c) Employees P.F. and Miscellaneous Provision Act, 1952: The Act provides
for monthly contributions by the Department plus workers @ 12% or 10%.
The benefits payable under the Act are:
(i) Pension or family pension on retirement or death, as the case may be.
(ii) Deposit linked insurance on the death in harness of the worker.
(iii) Payment of P.F. accumulation on retirement/death etc.,

32
Every contractor shall within 7 days of the close of every month, submit to the
principal employer a statement showing the recoveries of contribution in
respect of employees employed by or through him.
(d) Maternity Benefit Act, 1951: The Act provides for leave and some other
benefits to women employees in case of’ confinements or miscarriage etc.
(e) Contract Labour (Regulation & Abolition) Act, 1970: The Act provides
for certain welfare measures to be provided by the contractor to contract
labour and in case the Contractor fails to provide, the same are required to
be provided by the Principal Employer by Law. The Principal Employer is
required to take certificate of Registration and the contractor is required to
take license from the designated Officer.
1) The Act is applicable to the establishments or Contractor of Principal
Employer, if they employ 5 or more contract labour, on any day of the
preceding 12 months.
2) The payment of wages shall be made by way of cheque or by crediting
the salaries to the Bank Account of the concerned workers. Where
banking facilities are not available, the wages may be paid in cash.
3) (i) The Principal Employer shall ensure the presence of his
authorized representative at the place and time of disbursement of
wages by the contractor to workmen and it shall be the duty of the
contractor to ensure the disbursement of wages in the presence of such
authorized representative. (ii) The authorized representative of the
Principal Employer shall record under his signature a Certificate at the
end of the entries in the Register of Wages or the Register of Wages-
cum-Muster Roll, as the case may be.

(f) Minimum wages Act, 1948: The Contracting Agency is supposed to pay
not less than the Minimum wages fixed by appropriate Government as per
provisions of the Act if the employment is covered under scheduled
employment of (i) Construction of Projects including Dams and
Multipurpose Projects and (ii) Construction or Maintenance of Roads and

33
Building Operations. The wages shall be paid subject to the following
conditions.
1) The Contracting Agency after thorough verification shall pay the wages
to the workers according to the minimum wages fixed by the
Government or Labour Rates announced by the BoCE in SoR,
whichever is higher.
2) The Contracting Agency shall also pay the allowances if any notified
by the Government from time to time to the respective scheduled
employments and the allowances incorporated by the BoCE in SoR in
addition to the above wages.
3) The wages paid in kind i.e., in the form of essential commodities etc.,
cannot be taken as wages unless specifically notified by the appropriate
Government

(g) Payment of wages Act, 1936: It lays down as to by what date the wages
are to be paid, when it will be paid and what deductions can be made from
the wages of the workers.
(h) Equal Remuneration Act, 1979: The Act provides for payment of equal
wages for work of equal nature to Male or Female workers and for not
making discrimination against Female employee in the matters of transfers,
training and promotions etc.
(i) Payment of Bonus Act, 1965: The Act is applicable to all establishments
employing 20 or more employees. The Act provides for payment of annual
bonus subject to a minimum of 8.33% of wages and maximum of 20% of
wages to employees drawing Rs.21000/- per month or less. The bonus to
be paid to employees getting less than Rs.7000/- per month shall be
worked out by taking wages as Rs.7000/- per month only or the minimum
wage for the scheduled employment, as fixed by the appropriate
Government whichever is higher.
(j) Industrial Disputes Act, 1947: The Act lays down the machinery and
procedure for resolution of Industrial disputes, in what situations a strike or
lock- out becomes illegal and what are the requirements for laying off or
retrenching the employees or closing down the establishment. In cases of
disputes / conciliation proceedings / joint meetings, no party to a dispute

34
shall be entitled to be represented by legal practitioner in any conciliation
proceedings under this Act or in any proceedings before a Court.
(k) Industrial Employment (Standing Orders) Act, 1946: It is applicable to
all establishments employing 100 or more workmen (employment size
reduced by some of the State and Central Government to 50). The Act
provides for laying down rules governing the conditions of employment by
the Department on matters provided in the Act and get the same certified
by the designated Authority.
(l) Trade Unions Act, 1926: The Act lays down the procedure for
registration of trade unions of workmen and Departments. The Trade
Unions registered under the act have been given certain immunities from
civil and criminal liabilities.
(m) Child Labour (Prohibition & Regulation) Act, 1986: The Act prohibits
employment of children below 14 years of age in certain occupations and
processes and provides for regulation of employment of children in all
other occupations and processes. Employment of Child Labour is
prohibited in Building and Construction Industry.
(n) Inter-State Migrant workmen’s (Regulation of Employment &
Conditions of service) Act, 1979: The Act is applicable to an
establishment, which employs 5 or more inter-state migrant workmen or
through an intermediary (who has recruited workmen in one state for
employment in the establishment situated in another State). The inter State
migrant workmen, in an establishment to which this Act becomes
applicable, are required to be provided certain facilities such as housing,
medical aid, travelling expenses from home up to the establishment and
back, etc.
(o) The Building and Other Construction workers (Regulation of
Employment and conditions of service) Act, 1996 and the Cess Act of
1996: All the establishments who carry on any building or other
construction work and employs 10 or more workers are covered under this
Act. All such establishments are required to pay cess at the rate not
exceeding 2% of the cost of construction as may be modified by the
35
Government. The Department of the establishment is required to provide
safety measures at the Building or construction work and other welfare
measures, such as Canteens, First-aid facilities, Ambulance, Housing
accommodations for workers near the work place etc. The Principal
Employer and the Contractor to whom the Act applies has to obtain a
registration certificate from the Registering Officer appointed by the
Government.
The Contractor shall register the workers engaged by him as beneficiaries
under the Telangana Building & Other Construction Workers Welfare
Board, so as to enable the workers to be eligible for monetary and welfare
benefits provided under the Telangana Building & Other Construction
Workers Welfare Board.
(p) Factories Act, 1948: The Act lays down the procedure for approval of
plans before setting up a factory, health and safety provisions, welfare
provisions, working hours, annual earned leave and rendering information
regarding accidents or dangerous occurrences to designated authorities. lt
is applicable to premises employing 10 person or more with aid of power
or 20 or more persons without the aid of power engaged in manufacturing
process.
(q) The Bonded Labour System (Abolition) Act, 1976: If the Contractor pay
the wages to the workers less than the minimum wages, it comes under
other form of forced labour and comes under the purview of the Act.
(r) The Motor Transport Workers Act, 1961: The Contractor who employ
five or more motor transport workers in their establishment shall obtain a
license from the appropriate authority for the vehicles either owned by
them or engaged on hire.
(s) Fair Wage Clause: The Executive Engineer/Engineer-in-Charge shall
have the right to call for such record as required to satisfy himself on the
payment of fair wages to the labourers and shall have the right to deduct
from the contract amount a suitable amount for making good the loss
suffered by the worker or workers by the reason of the "fair wages" clause
to the workers.
36
(t) Employment-cum-Wage Cards: The Executive Engineer/ Engineer-in-
Charge should also take necessary steps for scrupulous implementation of
following by the Contractor.
(i) Issuing of Employment-cum-Wage Cards to all the construction
contract workers by the Contractor prior to the disbursement of their
wages.
(ii) Obtaining of required Licences and Registration certificates by the
Contractor.
(iii) Making of entries in the relevant Registers and Records and
enrolment of construction contract workers as members with the
Telangana State Building & Other Construction Workers Welfare
Board by the Contracting Agency.

(u) Maintenance of Records and Registers: The Contracting Agency shall


submit copies of all the prescribed registers and records on monthly basis
to the Executive Engineer/Engineer-in-Charge for preservation of the said
registers and records for a period not less than 3 years after completion of
work or till completion of maintenance period, whichever is higher.

“Note: All the above Labour laws/Acts/GOs/guidelines and as amended by the


Government from to time are applicable in execution of Contract Work and shall be
binding on the Contractor/Agency for its implementation without fail.”

The subject issue along with representations of the Secretary, INTUC dated
26.09.2019 and 16.10.2019 are placed before Board of Chief Engineers for its
discussion and necessary recommendations in the matter.

The Board of Chief Engineers has discussed the issue in detail duly
examining the representation of Secretary, INTUC and recommended to include
the amended Labour laws/Acts as proposed by the Engineer-in-Chief(Irrigation),
I&CAD Dept., in Standard Bid Document of all Engineering Departments for its
implementation, accordingly.
Action: Engineer-in-Chief (Irrigation), I & CAD Dept

37
Agenda Item No 8:

Representation of the President, INTUC, Hyderabad for inclusion and incorporation of


the certain items like Night time allowance to the workers working in the remote
areas, Special Allowance for risk/ hazardous works to certain category of workers
and Category wise Fixation of wages in respect of Unskilled, Semi-skilled, Skilled
and Highly Skilled categories – Forwarded by ENC(SR & CRN), R&B Dept., and
ENC(PR), PR Dept., requesting to place before BOCEs - For discussion & necessary
recommendation – Regarding.
Proposed by Engineer-in-Chief (AW), I&CAD Dept

The President, Indian National Trade Union Congress (INTUC), Hyderabad


vide letter dated 16.09.2019 has requested for inclusion of certain items pertaining to
applicability of Night allowance, Special Allowance for risk/ hazardous works
fixation of wages in respect of the Unskilled, Semiskilled and skilled categories
according to the guidelines of the Planning Commission and to maintain the difference
of minimum percentage between one category to another and also to add the Highly
Skilled Category in their Labour Rates, so as to help the poor unorganized workers
working in other projects / works in the entire state, irrespective of areas they are
working, may be placed before the Board meeting of SoR for incorporation in the
Telangana State Common Schedule of Rates

I. Night time allowance to the workers working in the remote areas during the night
time in the works of all the Engineering Departments in the entire State in the SoR
(Telangana State Common Schedule of Rates) on the following grounds.
 Most of the projects / works undertaken by the Government Engineering
Departments are in the remote areas or in very far off places and in other words
the workers were forced to work far away from their place of residences.
 In Schedule of Rates for the year 2019-20 is applicable for the workers
engaged by the contracting agencies in all the works of Government
Engineering Departments, the Board of Chief Engineers considered 25% extra
over the corresponding Labour Rates in respect of the works to be done during
38
night time but were applicable for the works taken up under Greater
Hyderabad Municipal Corporation and Greater Warangal Municipal
Corporation Limits only.
 The workers working in Greater Hyderabad Municipal Corporation and Greater
Warangal Municipal Corporation Limits are in the centre of the population and
having transportation and other facilities, but the workers in the Major Projects
/ Works are working in the remote areas, where there are no such proper
facilities. As such the workers working in remote projects/ works really deserve
for sanction of night allowance.
 The construction workers are working in the areas covered by the GHMC and
GWMC Limits are working against all odds. In the same way, the workers are
also working in the remote areas in other projects / works of the Government
Engineering Departments against the nature and it is not justifiable to deny the
same allowance to them on par with the workers working in the GHMC and
GWMC Limits.
II. Special Allowance for risk/ hazardous works to certain category of workers
working in Governmental Engineering Works of all the Engineering Departments
in the entire State in the SoR (Telangana State Common Schedule of Rates) on the
following grounds.
 The Ministry of Labour & Employment, Govt. of India, New Delhi, where in
orders were issued that;
(i) Workers employed on high rise structures, that is on or above thirty feet
height, even for one hour in a day shall be paid 20% extra wages of the
minimum wages so fixed for the appropriate category.
(ii) Workers employed on tunnel working shall be paid 20% of the
minimum wages fixed under this notification for the appropriate
category" and separate wages were fixed for workers working above
ground and below ground.
 In The Gazette of India: Extraordinary (Part.II Sec.3 (ii)) orders, it is explained
that a worker working below ground means that a person working or employed
in an open cast working in which the depth of the excavation measured from its

39
highest to its lowest point exceeds 6 ft. keeping in view the hazardous nature
of work.
 In the Schedule of Rates to the workers working in Governmental Engineering
works, no such allowance was allowed to the workers working in risk /
hazardous works in Governmental Engineering works such as Kaleshwaram
Project (Pranahitha Chevella Lift Irrigation Scheme), Palamuru Rangareddy
Lift Irrigation Scheme, Sita Rama Lift Irrigation Scheme, Dindi Lift Irrigation
Scheme, Tunnel works, Boiler houses, chimneys, water overhead tanks, Multi-
storied buildings underground pipelines, etc.

III. Fixation of wages in respect of Unskilled, Semi-skilled, Skilled and Highly Skilled
categories as per the norms stated by the Labour Department and Rectification of
the same in Telangana State Common Schedule of Rates on the following grounds
 During the year 2014, President of INTUC filed RTI Application before the
PIO, O/o the Commissioner of Labour, Govt. of Telangana, for furnishing the
guidelines on fixation of Skilled, Semiskilled and Unskilled categories under
the Right to Information Act, 2005. The 1st Appellate Authority and
Commissioner of Labour, Govt. of Telangana, issued orders on the appeal filed
is as follows:
"The Principal Advisor, Planning Commission, Govt. of India, New Delhi vide
Letter dated 18.09.2006 informed that it is proposed to have the wage
differentials at 15-18 % between unskilled to semi-skilled and skilled. Further
informed that, in the year 1999-2000 through Job Evaluation Technique, a
Study was carried out as to what should be the differences and it was proposed
to have differences 19-20 % between unskilled to semi-skilled and 12-13 %
between semi-skilled to skilled".
 The President of INTUC Hyderabad mentioned in his letter that the fixation of
wages by the Board of Chief Engineers in Telangana State Common Schedule
of Rates, for the above categories is not in accordance with the clarification
issued by the Planning Commission, Govt. India, New Delhi. The variation
in percentage of wage between the unskilled, semi-skilled and skilled
categories when compared with the clarification by the Planning Commission
40
and the wages fixed in the Telangana State Common Schedule of Rates is as
follows:
Percentage of hike
Percentage of hike from the lower
Schedule Rate for
SI. Category of from the lower category as per
the year 2019-20
No Worker category as per Planning
per day
SoR Commission
guidelines.
Rs.490/- to
1 Skilled 4.25% to 27.66% 12 to 13%
Rs.600/-
Semi-
2 Rs.470/- 5.62% 19 to 20%
Skilled
3 Un-Skilled Rs.445/- - -
 Further the President submitted that, the wages of other category workers
ranged from Rs.470 to Rs. 1,075/-, which may not be desirable, because the
wages cannot vary to such an extent within one category. Because, this may
create confusion among the categories for payment of minimum wages.
 The Government of India and the erstwhile Government of Andhra Pradesh fix
the wages for another higher category i.e., Highly Skilled Category vide S.O.
No.188(E) dated 19.01.2017and G.O.Ms.No.11 of LET&F (Lab.II)
Department, dated 17.01.2012 respectively. But in the Telangana State
Common Schedule of Rates, no such higher category was shown in the Labour
Rates due to which the workers may be put to financial loss.
 Further, the copies of Representation of president INTUC in the subject matter
was forwarded by the the Chief Engineer(R&B), D&P LWE& RSW , Hyd.
Vide lette No 2613/AEE2/DEE / DD/RSW/2018 Dt. 10.10.2019, the Engineer-
in-Chief (R&B), SR& CRN , Hyd vide letter Lr. No 5040/DEE-R/EE(R)/
DEE1/AEE1/2019 Dt. 14.10.2019 and the Engineer-in-Chief Panchayat Raj
Engineering Dept, vide lr no AEE(T)/DEE(T)/BoCE’s meeting/2018 Dt.
22.10.2019 has communicated the same subject matters with a request to place
before the Board of Chief Engineers (BoCE’s) meeting for deliberations and
taking further decision.
Notes:
 The workers in the Governmental Engineering works such as Kaleshwaram
Project (Pranahitha Chevella Lift Irrigation Scheme), Palamuru Rangareddy
Lift Irrigation Scheme are working in the remote areas, where there are no such
proper facilities and the workers are doing the work in a constrained
atmosphere particularly in the nights to earn their livelihood. As such, the
workers working in remote projects/ works really deserve for sanction of night
allowance.

41
 Risk Allowance may be granted to those workers engaged in hazardous duties
or whose work will have deleterious effect on health over a period of time and
hardships or challenges faced at working areas.
 For Telangana State SoR, the Fixation of wages for Unskilled, Semi-Skilled
and Skilled categories shall be based on the minimum wages fixed as per
Minimum Wages Act-1948 and duly considering the price index number
provided by the Commissioner of Labour, Telangana which was finalized
based on average state industrial workers and Agricultural workers in various
scheduled employment.
 The comparative statement showing the minimum and maximum wages as per
the Min. Wages Act-1948 and as per SOR 2019-20 are as follows.

Percentage of
hike from the Percentage of hike
Schedule
Min. Wages lower category from the lower
SI. Category Rate for the
Act-1948 as per Min. category as per
No of Worker year 2019-
Wages Wages Act-1948 SoR 2018-19 to
20 per day
Wages to SoR 2019-20
2019-20
Rs.387/- to Rs.490/- to
1 Skilled 26.61-14.5% 4.25% to 27.66%
Rs.524/- Rs.600/-
Semi-
2 Rs.387/- Rs.470/- 21.44% 5.62%
Skilled
3 Un-Skilled Rs.351/- Rs.445/- 26.78% 4.70%

The subject issue along with copy of INTUC letters Dt. 15.09.2019 to
17.09.2019 is placed before Board of Chief Engineers for perusal and for necessary
recommendations in the matter.

The Board of Chief Engineers has discussed the issue in detail and after
detailed deliberations in the matter BOCEs has opined that Night allowance and
Risk allowance etc., are not applicable for general & routine nature of works and
approval from the competent authority/Government may be obtained for such
specific requirement of works duly substantiating the necessity and urgency of
works for which all Labour laws/Acts may be provided in the agreements.
Action: Engineer-in-Chief (AW), I & CAD Dept

42
Agenda Item No 9:

Presidential Order – Telangana Public Employment (Organization of Local Cadres &


Regulation of Direct Recruitment) Order, 2018 –Organizing the Local cadres of
existing employees of Irrigation & CAD Department in to local cadres as per New
Presidential Order – Proposals of the Post of Deputy Executive Engineer shall be
treated as State Cadre post- Placed before Board of Chief Engineers
(BOCEs)for its discussion and necessary recommendation – Regarding
Proposed by Engineer-in- Chief (AW), I & CAD Dept. and
Chairman, Board of Chief Engineers

As per the provisions of the Presidential Order 1975, G.S.R.No.529 (E) dated
18th October, 1975 issued under Paragraph specified Gazetted categories listed in the
3rd Schedule, the post of Deputy Executive Engineer was under Specified Gazetted
Categories in the local cadre. It was in the Zonal Cadre as per the Presidential Order
1975.

The initial recruitment cadre of Assistant Executive Engineer /Assistant


Engineer and promotional cadre of Deputy Executive Engineer are in zonal cadre as
per the presidential Order 1975. The recruitment to the cadre of Assistant Executive
Engineer was uneven among different zones. Since, both the cadres are in zonal post,
promotions are given to the Assistant Executive Engineers to the vacancies of
Deputy Executive Engineers of respective zone, due to which Engineers of one batch
of one zone are marching ahead in promotions when compared to others in the cadre
of Executive Engineer and higher cadres as integration is taking place in the cadre of
Deputy Executive Engineer. It has become a burning issue in the Department. But the
Presidential order 1975 has not allowed any room for resolving the issue. Now, the
Government have brought new presidential order 2018, where in a Para6(3) gives way
to overcome the above problem, by organizing Deputy Executive Engineer cadre in to
State Cadre.

The Government of India vide GSR.No.820(E), Ministry of Home Affairs,


dated 29-08-2018 have issued new Presidential Order, the Telangana Public
Employment (Organization of Local Cadres & Regulation of Direct Recruitment)
43
Order, 2018 (PO 2018) and the same was republished in the Telangana Gazettee vide
G.O.Ms.No.124, General Administration(SPF-MC) Department, dated 30-08-2018.
As per the Presidential Order, 2018, the local cadre of particular post is decided based
on the scale of pay of post as defined at Para-6(3) of G.O.Ms.No.124, General
Administration(SPF-MC) Department, dated 30-08-2018, a category equivalent to or
lower than that of a Deputy Collector, i.e minimum of the scale of pay of a post
belonging to that category or where the post carries a fixed pay, such fixed pay is
equal to or lower than the minimum of the scale of pay of a Deputy Collector, shall be
organized to local cadre of Multi Zonal Post.

The scale of pay of Deputy Collector as per 2015 PRC is Rs.40270-93780. The
pay scale of the post of Deputy Executive Engineer is Rs. 42490-96110, which is
higher than the pay scale of Deputy Collector.

The post of Deputy Executive Engineer is not a Direct Recruitment Post. As per
the TSES Service Rules vide communicated G.O.Ms.No.32 I & CAD (Ser.I) Dept
Dt:25-04-2018, the post of Deputy Executive Engineer is a promotional post only.
As per new presidential order, Local Cadres are organized for the purpose of
recruitment, appointment and discharge. There will be no adverse effect on any other
cadre in organizing local cadres, as each cadre shall be organized in to a local cadre
based on the scale of pay of that cadre as per the new presidential order 2018.The
cadre of Deputy Executive Engineer shall be treated outside the local cadre ie., the
post of Deputy Executive Engineer shall be State Cadre post.

To have a uniform method of organizing local cadres in respect of Engineering


cadres of all Engineering Departments of the State, the subject issue along with copy
of new Presidential order published in Telangana Gazettee vide G.O.Ms.No.124,
General Administration (SPF-MC) Department, dated 30-08-2018 is placed before
Board of Chief Engineers for its discussion and necessary recommendations in the
matter.

44
The Board of Chief Engineers has discussed the issue in detail and after
detailed deliberations in the matter, all the members have agreed and
recommended to organize the “Deputy Executive Engineer post in to the State
cadre” and resolved to obtain necessary orders from the Government for
uniform implementation by all Engineering Departments of the State in the
matter.
Action: Engineer-in-Chief (AW), I&CAD Dept

Agenda Item No 10:

I&CAD Dept., - Joint Ventures –Subletting part of work among the JV Partners -
Clarification placed before Board of Chief Engineers (BOCEs)for its discussion and
necessary recommendation – Regarding
Proposed by Engineer-in-Chief (AW), I&CAD Dept and
Commissioner, COT

The Engineer-in-Chief (AW), I&CAD Dept and Commissioner, COT vide


letter dated 18.11.2019 has furnished the following on the subject issue as below.

I. Subletting by Individuals:
As per G.O Ms.No.94 I&CAD (PW-COD) Dt:01-07-2003 “If the prime
contractor desires to sub-let a part of the work, he should submit the same at the time
of filing tenders itself or during execution, giving the name of the proposed Sub-
Contractor, along with details of his qualification and experience. The Tender
Accepting should verify the experience of the Sub-Contractor and if the Sub-
Contractor satisfies the qualification criteria in proportion to the value of work
proposed to be sub-let, he may permit the same. The total value of works to be
awarded on sub-letting shall not exceed 50% of contract value. The extent of
subletting shall be added to the experience of the sub-contractor and to that extent
deducted from that of the main contractor”.
And as per Standard bid document (I&CAD Dept), Clause No. 3.3(F), If the
prime contractor desires to sub-let a part of the work he should submit the same at the
time of filing tenders or during execution, giving the name of the proposed Sub-
Contractor, along with details of the qualification and experience. The Tender
45
Accepting Authority will verify the experience of the proposed Sub-Contractor and if
the Sub-Contractor satisfies the qualification criteria in proportion to the value of
work proposed to be sub-let, he may permit the same. The total value of works to be
awarded on sub-letting shall not exceed 45% of contract value. The extent of
subletting shall be added to the experience of the sub-contractor and to that extent
deducted from that of the main contractor. No qualification criteria shall be considered
for sub-letting the works upto Rs 50 Crores for local entrepreneurs verified with
Adhar Card. However, considering the annual turnover based on the certificate issued
by chartered accountant as well as the income tax returns filed in the corresponding
year and based on the valid registration in the class and categories mentioned in the
NIT, works up to Rs 50 crores would be permitted to be sub-letted.

If the part of work is to be sublet during execution, i.e., within the agreement
period or beyond the agreement period (EOT), the sub-contractor shall satisfy the
qualification criteria proportionate to proposed value of subletting according to the
qualification prescribed in the tender document only.

II) Joint Ventures:


1. Criterion for joint ventures as per Standard Bid Document:

A) General requirements:
1) Individual / Firm/ Company registered as _________________(appropriate class &
category of contract may be incorporated according to the nature of work and as
per ECV Value) with Government of Telangana / erstwhile Andhra Pradesh with
valid Registration in terms of
(I) G.O.Ms.No.94, I&CAD(PW-COD) Dept., dt.1.7.2003 and
(II) G.O.Ms.No.130,I&CAD(PW-Reforms)Dept., dt. 22.05.2007
(III) G.O.Ms.No.66, I&CAD (Reforms) Dept.dt.20-4-2015
(IV) G.O.Ms.No.67, I&CAD (Reforms) Dept.dt.20-4-2015
(V) GO Ms No.140 I & CAD (Reforms) Dept, Dt 26-09-2015

2) In case of J.V, the partner of the J.V group should have a valid registration in
appropriate class with the Government of Telangana / erstwhile Andhra Pradesh as
on date of submission of bids.
3) Any member of JV who has applied for / availed corporate debt restructuring
(CDR) / Strategic Debt Restructuring (SDR) during last five (5) financial years and
continuing to be under the same as on the date of tendering i.e., ............... is not
46
eligible to participate in the bid. A certificate from chartered accountant to the
effect that CDR/SDR not applied / not availed/ not continuing under CDR/SDR
shall be uploaded by the bidder.

4) In case of joint ventures, the eligibility criteria will be considered on the basis of
combined resources of the JV members, subject to the provisions of the bid
document.

5) The total members in the Joint venture shall not be more than 3 (Three)
6) In case of Joint Venture, the JV members should have entered into a legally valid
Agreement for joint and several responsibilities and submit along with bid. The
name of the Lead Member shall be defined. The Lead Member’s share shall be not
less than 51% in the joint venture. The other two members share shall not be less
than 20%. The share of each member including lead Member shall be exhibited in
the JV Agreement.

In case of JV for pump house packages the conditions of joint and several
responsibilities is applicable to all the JV partners except the JV partner who is
responsible for pump/motor components and the responsibility & liability of such
JV partner shall be limited to his share. However, the lead partner of the JV shall
be responsible and liable for all contractual obligations/ responsibilities for
completion of entire work.

7) The JV Agreement should clearly exhibit the responsibilities of the JV members.


The non-lead members of the JV shall execute a Power of Attorney in favour of the
Lead Member authorizing the Lead Member to conduct all business for and on
behalf of the JV during (a) Tendering process and (b) execution and for successful
performance of the work including the Defect Liability in case of award of work.
The Lead Member shall execute a Power of Attorney in favour of one of its officers
to be the Authorized Signatory for signing the Bid Documents and also to
undertake all other acts and deeds on the behalf of the JV in connection with the
Bid and the Contract.

8) The JV firm should furnish an undertaking from all the members that in case of
award of work, the J.V Agreement deed is irrevocable by any one or all the
members together until 3 months after the completion of the contract period
including the defect liability period.

47
9) The JV Agreement should also include JV members to agree that the above
undertaking to be without any prejudice to the various liabilities of the members of
the JV (Bidder) including the performance security deposit as well as all the other
obligations of the contract.
10) In case of J.Vs in meeting the requirement of eligibility criteria except “Available
bid capacity”, the experience of each of the members of J.V shall be added together
to arrive the combined experience of the J.V to determine the tenderers compliance
with eligibility criteria, subject to satisfying minimum criteria stipulated for
members of the JV in the subsequent clauses.

Regarding available bid capacity, in case of joint venture the available bid capacity
will be applied for each member to the extent of his participation in the execution
of the works according to the J.V agreement.
11) The experience of the work for which bids are invited shall be shared among the
members of J.V. in the same ratio of their JV participation in the work.

12) No member of Joint Venture shall be member of another Joint Venture for bidding
the same work. All such bids in that particular work shall be disqualified.

III) Certain guidelines issued by COT in the meeting dt 22.10.2018 on Subletting of


part of work:

1. As per para 15 of the G.O cited


If the prime contractor desires to sub-let a part of the work he should submit
the same at the time of filing tenders itself or during execution, giving the
name of the proposed Sub-Contractor, along with details of his qualification
and experience. The Tender Accepting Authority should verify the
experience of the Sub-Contractor and if the Sub-Contractor satisfies the
qualification criteria in proportion to the value of work proposed to be sub-
let, he may permit the same. The total value of works to be awarded on sub-
letting shall not exceed 50% of contract value. The extent of subletting shall
be added to the experience of the sub- contractor and to that extent deducted
from that of the main contractor.
1. As the entire Agreement is subsistingg, acceptance of sublet proposals will not
reduce the responsibility of the Main contractor for completion of the work in

48
accordance with agreement conditions. The sublet proposals are accepted only
to facilitate contractor of early completion of the work.
2. For the above stated reasons, no separate agreement is to be concluded with the
sub-contractor.
3. All payments are to be made to the main contractor.
4. The extent of subletting shall be added to the experience of the sub-contractor
and to that extent to be deducted from that of the main contractor.
5. The genuineness and correctness of all the documents furnished by the
proposed sub-contractor shall be verified by the Competent Authority for
genuineness and correctness.
6. It may be ensured that the proposed sub-contractor possesses the Key and
critical equipment, Technical Personnel, required for the work as per tender
conditions and verified by the Competent Authority. Availability of technical
persons with the sub-contractor may be ensured.
7. Performance Security continues to be supplied and maintained by the main
contractor.
8. Main contractor is not discharged from any liability arising out of the
Agreement.
IV) The sublet proposals are being examined in the Commissionerate of Tenders and
permissions are being accorded complying to the GOs/Agreement conditions etc.,
with following Conditions.
1) The Chief Engineer shall ensure that the work to be sublet now is from the
quantities to be executed only.
2) The agreement Concluding authority should ensure that the present sublet work
experience deducted from JV partners/contractor/agencies duly following the
agreement condition without giving any scope for duplication of issuance of
experience.
3) The Chief Engineer shall ensure that the guidelines issued on subletting part of
work vide COT minutes dt:22.10.2018 are strictly followed.
4) As the entire Agreement is subsisting, acceptance of sublet proposals will not
reduce the responsibility of the Main contractor for completion of the work in
accordance with Agreement conditions. The sublet proposals are accepted only to
facilitate contractor of early completion of the work.
49
5) For the above stated reasons, no separate agreement is to be concluded with the
sub-contractor.
6) All payments are to be made to the main contractor.
7) The extent of subletting shall be added to the experience of the sub-contractor and
to that extent to be deducted from that of the main contractor.
8) The genuineness and correctness of all the documents furnished by the proposed
sub-contractor shall be verified by the Competent Authority for genuineness and
correctness.
9) It may be ensured that the proposed sub-contractor possesses the Key and critical
equipment, Technical Personnel, required for the work as per tender conditions
and verified by the Competent Authority. Availability of Key and critical
equipment, Technical Personnel with the sub-contractor may be ensured.
10) Performance Security continues to be supplied and maintained by the main
contractor.
11) Main contractor is not discharged from any liability arising out of the Agreement.
12) The Chief Engineer shall ensure that the Government orders, guidelines and codal
provisions in force for execution of the work with the sub-contractor shall be
adhered to before, during and after execution of the work with the sub-contractor.
13) The Chief Engineer shall ensure that the recommended sub-contractor possess
Quality Control Lab & submit the Quality Plan as per GO Ms No.94, dt. 1.7.2003
before communicating the proceedings.
14) The Chief Engineer shall ensure that the taxes to be deducted, included in the rates
are fully recovered.
15) The Chief Engineer shall ensure that the recommended sub-contractor shall
produces the required insurance and engage technical personnel with adequate
experience as per tender conditions before issue of proceedings.
16) The Chief Engineer shall ensure that the recommended sub-contractor furnishes
necessary declarations as per the relevant clauses in the tender document before
issue of proceedings.
17) The Chief Engineer shall ensure that the entire work is completed within
agreement period as per terms and conditions stipulated in the original agreement.

50
In this regar~ there are no clear instructions or clauses pertaining to Joint Ventures, as
such the following points are to be clarified:
1. In a N , whether one of the partner in the N can sublet his entire share of work to
the Lead Partner or part of his share.
2. The total value of works to be awarded on sub-letting shall not exceed 45% of
contract value. In a N, 45% means, is it out of the Total Contract Value of the work
or the J.V Partner contract value also is to be clarified.
The issue was taken up for discussion in the Commissionerate of Tenders (COT)
meeting held on 14.11.2019
The members opined that as there are no clear instructions or clauses pertaining to
Joint ventures (Ns) for subletting of part of work among the N partners, the subject
may be taken up in the ensuing BOCEs meeting for discussion and necessary
guidelines.

The subject issue along with copies of Commissioner, COT letter dated
18.11.2019 along with its enclosures are placed before Board of Chief Engineers for
its discussion and necessary recommendations in the matter.

The Board of Chief Engineers has deliberated the issue in detail and it is
clarified that sub-letting within JV partners shall not be entertained which is
against the principles of JV.

Action: Engineer-in-Chief (AW), I&CAD Dept and


Commissioner, COT

~Jv._ S
P.:,, <u, /u) \f
Engineer-in-Chief (AW),
Irrigation &CAD Department and
Chairman, Board of Chief Engineers

51

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