GOVERNMENT OF KARNATAKA

(Department Of Agriculture)
No: DDA/FT/FM/CHSC/EOI/2013-14 Commissionerate of Agriclulture,
Seshadri Road, Bangalore-1.
Dated:31-01-2014
EXPRESSION OF INTEREST

Sub: e-based Invitation for Expression of Interest for selection of registered Charitable
Trusts (registered under section 25 of Companies Act, 1956)/ Orgnisations/Non
Government Organisations (NGO) to establish Farm Machinery Custom Hire
Service Centres (CHSCs) for the year 2014-15
*****
e-Procurement Invitation for Expression of Interest is invited from registered Charitable
Trusts (registered under section 25 of Companies Act, 1956) /Organisations /Non Government
Organisations (NGO) to establish Farm Machinery Custom Hire Service Centres (CHSCs) for the
year 2014-15 through the Department of Agriculture. The details of eligibility are given in
Annexure-II and the details of implements to be supplied to the CHSCs are given in Annexure-III.
The interested registered Charitable Trusts (registered under section 25 of Companies Act,
1956) /Organisations/Non Government Organisations (NGO) can download the Tender documents
through e-Procurement free of cost. The interested registered Charitable Trusts (registered under
section 25 of Companies Act, 1956) /Organisations/Non Government Organisations (NGO) have to
register at the Centre for e-Governance, Gate No.2, 1st floor, M.S. Building, Bangalore-01and
obtain the DSC key/e-token.

Applications for Expression of Interest (Format-1) can be downloaded from the website
https://eproc.karnataka.gov.in from Dt:3-2-2014 to Dt:3-4-2014. The Technical bids will be
opened on Dt:7-4-2014 at 3.00 pm at Samrudhi V.C. Hall, Commissionerate of Agriculture,
Sheshadri road, Bangalore-1.

A nominal amount of Rs. 550/- as Procurement and Processing Fee shall be paid in the form
of e-Payment through e-Procurement portal which is non-refundable. Apart from Processing Fee, a
Nominal EMD of Rs.1.00 lakh for each Custom Hire Service Center in the form of Bank Gaurantee
drawn in favour of the Director of Agriculture, Bangalore should be scanned and up loaded. The
hard copy of the Bank Gaurantee should be submitted to Deputy Director of Agriculture, (Field
Trials), Commissionerate of Agriculture, Sheshadri Road, Bangalore-1 before 5.00 pm on Dt:4-4-
2014.

DIRECTOR OF AGRICULTURE

AND
EXPRESSION OF INTEREST INVITING AUTHORITY
 Government of Karnataka
Department of Agriculture
No: DDA/FT/FM/CHSC/EOI/2014-15 Directorate of Agriculture
Sheshadri Road, Bangalore- 1
Date:31-01 -2014

Invitation for Expression of Interest

Sub : Applications for e based- Expression of Interest for the purpose of establishment of Custom
Hire Service Centers through registered Charitable Trusts (Registered under Section 25 of
Companies Act, 1956) /Organisations/Non Government Organisations (NGO).
The Department of Agriculture proposes to establish one Custom Hire Service Center at
Hobli level in the State during the year 2014-15. The details of scope of the programme and terms of
reference are annexed. The short listed registered Charitable Trusts (Registered under Section 25 of
Companies Act, 1956) /Organisations/Non Government Organisations (NGO) should submit the
duly filled in application form as per the format annexed.

Registered Charitable Trusts (Registered under Section 25 of Companies Act, 1956)

/Organisations/Non Government Organisations (NGO) who are interested in participating in the
expression of interest regarding the programme are requested to submit the following information:

1. Profile of the Charitable Trusts (Registered under Section 25 of Companies Act,1956)

/Organisations/Non Government Organisations (NGO).
2. Annual report, Balance Sheet for the past three years.
3. Brief write up of about 100 words, including monetary value with details of relevant
assignments completed in the past three years.
4. Complete details of staff in the Charitable trusts (Registered under Section 25 of Companies
Act, 1956) /Organisations/Non Government Organisations (NGO) along with their resume.

The interested Charitable Trusts (Registered under Section 25 of Companies Act, 1956)
/Organisations/Non Government Organisations (NGO) may download information on e-procurement
website https://eproc.karnataka.gov.in. And they have to collect digital keys and pass words from
e-Governence. For further information contact, Deputy Director of Agriculture (Field Trials),
Directorate of Agriculture, Sheshadri Road, Bangalore- 1.

Note: The applicant Charitable Trusts (Registered under Section 25 of Companies Act, 1956)
/Organisations/Non Government Organisations (NGO) should submit a security deposit of Rs. 1.00
lakh.
 ANNEXURE- I
Background
Karnataka State is typically an agrarian State with 190.5 lakh ha of geographical area
with 99.41 lakh ha of net sown area (Year 2011-12) and has about 78.32 lakh ha operational
holdings (Agri Census 2010-11) of which 76% are small and marginal holdings.
Diversified agriculture and horticulture crops grown in varied Agro-climatic regions
of the state. The challenge is to get higher yields, in spite of vagaries of nature besides other
problems such as decrease in the availability of agriculture labourers, migration of farmers
from rural area to cities etc. Mechanisation of farm activities is the need of hour to increase
production and productivity. Though subsidy is being provided for farm machinery, due to
prohibitive cost of farm machinery all farmers may not come forward to own them. Hence,
establishment of Custom Hire and Service Centre (CHSC) is a boon for farmers especially
for the small and marginal farmers.
The charitable trusts (registered under section 25 of Companies Act,
1956)/Organisations/Non Government Organisations (NGO) are selected at District level and
they have to establish custom hire service centers at Hobli level in the selected District. One
Charitable Trust (registered under section 25 of Companies Act, 1956) /Organisations/Non
Government Organisations (NGO) can apply for more than one District.
The Department of Agriculture proposes to establish 186 CHSCs (Minimum Rs.50.00
lakhs per center) during the year 2014-15. During the first year, Government assistance in
the form of Back Ended Subsidy will be Rs. 37.50 lakhs (75%) and the participant has to
contribute minimum of Rs. 12.50 lakhs (25 %). During the second year the Government has
to contribute Rs.12.50 lakhs and participant has to contribute minimum of Rs.12.50 lakhs per
center.
In the subsequent phase preference will be given to the successfully performing
Charitable trusts (registered under section 25 of Companies Act, 1956) /Organisations/Non
Government Organisations (NGO) for establishing additional CHSCs subject to same terms
and conditions.
 ANNEXURE-II
Selection Criteria for Charitable Trusts (Registered under Section 25 of Companies
Act, 1956) /Organisations/Non Government Organisations (NGO)
Agriculture scenario has witnessed a great change since last decade. With the
enormous development of urban areas and migration of rural labour class to the urban areas
for employment has resulted in scarcity of labour for agricultural operations. In this context,
mechanisation in agriculture is an only alternative to solve the labour problem being faced by
our farming community today. Mechanisation not only helps in solving the problem of
labour, but also enables to carry out agricultural activities in right time. The major constraint
in mechanisation is that small and marginal farmers cannot afford to purchase costly
mechinery and equipments. Custom Hire Service Centers (CHSCs) enable to overcome these
constraints as they provide services of mechinery on hire basis to small and marginal farmers
in right time. With this background it is proposed to select reputed functional Charitable
Trusts (Registered under Section 25 of Companies Act, 1956)/Organisations/Non
Government Organisations (NGO).

The criteria for selection of Charitable Trusts (Registered under Section 25 of Companies
Act, 1956) /Organisations/Non Government Organisations (NGO) are

1. The Charitable Trusts (registered under Section 25 of Companies Act, 1956)

/Organisations/Non Government Organisations (NGO) should be registered.
2. A minimum of 50 workers should be working for the Charitable Trusts (Registered
under Section 25 of Companies Act, 1956) /Organisations/Non Government
Organisations (NGO) and should be actively functioning for the past three years.
3. The Charitable Trust (registered under section 25 of Companies Act, 1956)
/Organisations/Non Government Organisations (NGO) should have experience in
execution of Government programmes (attach necessary documents).
4. On selection, the trusts (registered under section 25 of Companies Act, 1956)
/Organisations/Non Government Organisations (NGO) should function efficiently as
per the agreement.
5. The Charitable Trusts (registered under section 25 of Companies Act,
1956)/Organisations/Non Government Organisations (NGO) should have minimum 5
persons who have knowledge about Agriculture / Agri-Business/ Farm machinery.
6. The area of operation of Charitable Trust (registered under section 25 of Companies
Act, 1956)/Organisations/Non Government Organisations (NGO) should be well
defined.
7. The Charitable Trust (registered under section 25 of Companies Act,
1956)/Organisations/Non Government Organisations (NGO) should have minimum of
1.00 crore turn over and they should submit last three years Annual Audit Report.
8. Any member of the Charitable Trust (registered under section 25 of Companies Act,
1956)/Organisations/Non Government Organisations (NGO) should not be elected/
nominated person of any political party.
9. The selected Charitable Trusts (registered under section 25 of Companies Act,
1956)/Organisations/Non Government Organisations (NGO) should mandatorily have
minimum of 5 members to run one CHSC including technical staff, mechanic and
driver. Technical staff in the CHSC should be trained and guide the staff and farmer.
10. No criminal case registered in police station/ pending in any court are convicted
Charitable Trusts (registered under section 25 of Companies Act, 1956)/Organisations
/Non Government Organisations (NGO) is eligible to participate.
11. The Charitable Trusts (registered under section 25 of Companies Act,
1956)/Organisations should not have been blacklisted in any State and they should
submit an affidavit to that aspect.
12. The work assigned under this Expression of Interest cannot be sub-let.
13. The staff of the Charitable Trusts (registered under section 25 of Companies Act,
1956)/Organisations/Non Government Organisations (NGO) should function in co-
ordination with the Department of agriculture.
14. The functioning of the Charitable Trusts (registered under section 25 of Companies
Act, 1956)/Organisations/Non Government Organisations (NGO) through out the
cropping season is mandatory.
15. The Charitable Trusts (registered under section 25 of Companies Act,
1956)/Organisations/Non Government Organisations (NGO) should make provision
for Insuring all the farm machinery provided against natural disaster/robbery (2% of
 the total amount of the implementts provided by the department should be paid as
insurance by the Charitable Trust/Organisations/Non Government Organisations
(NGO)).
16. E.M.D. at the rate of Rs. 1.00 lakh per CHSC in the form of Bank guarantee in the
name of Director of Agriculture should be submitted for a period of five years after
the selection of Charitable trusts (registered under section 25 of Companies Act,
1956) / Organisations/Non Government Organisations (NGO). Unqualified agencies
E.M.D. will be refunded immediately.

CONDITIONS:
1) For the purpose of selection of Charitable Trust /Organisations/Non Government
Organisations (NGO), each District will be treated as an Unit.
2) The selected Charitable Trusts (Registered under Section 25 of Companies Act, 1956)
/Organisations/Non Government Organisations (NGO) should enter into an agreement
with the Department.
3) All the financial transactions of the CHSC/ Charitable Trusts (Registered under
Section 25 of Companies Act, 1956) /Organisations/Non Government Organisations
(NGO) should submit the Annual Utilisation Certificate.
4) Preference should be given to Small and Marginal farmers during hiring out.
5) The area of the operation of the Charitable Trust /Organisations/Non Government
Organisations (NGO) should be at District level.
6) Farm implements worth Rs. 50.00 lakh will be shelfed in one CHSC based on the
local needs.
7) Running Expenditure like salary of the personnel incharge of CHSC, rent, fuel
charges, repairs and maintainance charges etc.. shall be borne by the Charitable Trust
/Organisations/Non Government Organisations (NGO).
8) Charitable Trust /Organisations/Non Government Organisations (NGO) have to
maintain separate bank account for the CHSC purpose.
9) Profit generated by the Custom Hiring Centers has to be reinvested for strengthening
of Center so as to attain sustainability.
 10) In case performance is same for all parameters, then preference will be given for
local agency for establishment of CHSC.
11) If more than one local agency found to be eligible then the agency ready to invest
higher amount for establishment of CHSC will be considered.
12) The Department of Agriculture proposes to establish 186 CHSCs (Minimum
Rs.50.00 lakhs per center) during the year 2014-15. During the first year, Government
assistance in the form of Back Ended Subsidy will be Rs. 37.50 lakhs (75%) and the
participant has to contribute minimum of Rs. 12.50 lakhs (25 %). During the second
year the Government has to contribute Rs.12.50 lakhs and participant has to
contribute minimum of Rs.12.50 lakhs per center.
13) In the subsequent phase preference will be given to the successfully performing
Charitable trusts (registered under section 25 of Companies Act, 1956)
/Organisations/Non Government Organisations (NGO) for establishing additional
CHSCs subjected to the terms and conditions.
14) Any disputes arriving during the implementation of the project it will be resolved and
settled at the level of Department of Agriculture only.
15) All selected Charitable Trusts/Organisations/ Non Government Organisations (NGO)
should submit Audited statement every year.
16) All eligible Charitable Trusts/Organisations/ Non Government Organisations (NGO)
will be provided an oppurtunity to present (duration -10 minutes) the organisation
strength and vision to establish CHSC in sustainable manner.
Fixing of the Hiring Charges: The hiring and service charges for tractor and other
equipments shall be fixed by the Districts Implements Committee locallydepending on
the local prevailing market rate headed by CEO, Joint Director of Agriculture, leading
farm machinery manufacturer in the District, ADA(SMS) and 2 progressive farmer /
Krishi Prashasthi Awaardee, CHSC representative, University of Agricultural
Sciences representative as members. The committee may take into account the fuel
prices, salary of drivers, repairs, distance from Service Centre to fields, wears and
tears and other incidental expences while determining the hiring charges. Separate
hiring charges should be fixed for Small & Marginal Farmers as a category and other
category farmers, wherein hiring charges for Small and Marginal category farmers
will be lower than the other category farmers.
FINANCIAL ASSISTANCE

1. The Department of Agriculture proposes to establish 186 CHSCs (Minimum Rs.50.00

lakhs per center) during the year 2014-15. During the first year, Government
assistance in the form of Back Ended Subsidy will be Rs. 37.50 lakhs (75%) and the
participant has to contribute minimum of Rs. 12.50 lakhs (25 %). During the second
year the Government has to contribute Rs.12.50 lakhs and participant has to
contribute minimum of Rs.12.50 lakhs per center.
2. In the subsequent phase preference will be given to the successfully performing
Charitable trusts (registered under section 25 of Companies Act, 1956)
/Organisations/Non Government Organisations (NGO) for establishing additional
CHSCs subjected to the terms and conditions.
3. The Charitable trusts (registered under section 25 of Companies Act, 1956) /
Organisations/Non Government Organisations (NGO) shall bear 25% share of the
project cost from their own resource or loan borrowed from bank or both.
4. Subsidy will be in the form of “Back Ended Subsidy”. In this form subsidy is
deposited with bank and adjusted at the end when the operator {Charitable
Trusts/Organisations/ Non Government Organisations (NGO)} has repaid full loan
amount. The bank will not take any interest, from the Charitable Trusts/Organisations/
Non Government Organisations (NGO), on the amount equal to the subsidy amount.
5. The successful Charitable Trusts/Organisations/Non Government Organisations
(NGO) will have to establish Hi-Tech Custom hiring centre within 3 months from the
date of issue of work order. The departmental officers will monitor the progress and
after physical verification the subsidy will be released to the bank.

PENALTIES FOR VIOLATIONS AND NON PERFORMANCE

If the Custom Hire Service Center should not run properly (failure or closing of the
center), the concerned Charitable Trusts/Organisations/ Non Government Organisations
(NGO) should refund/ remit full subsidy amount along with interest amount as per prevailing
market rate.
 ANNEXURE-III

Objectives of the Custom Hire Service Centres (CHSCs)

Department of Agriculture provides subsidy for Farm Machinery like power tiller,
cultivator etc by under NFSM/ ISOPOM / R.K.V.Y. and other state sector schemes. Due to
prohibitive cost of farm machinery small and marginal farmers are unable to own them.
Thus, establishment of Custom Hire and Service Centres and Shelfing farm machinery
required for various farm activities right from land preparation to post harvest would enable
small and marginal farmers to mechanise farm activities by way of hiring the farm
machinery on nominal hire charges. The farm activity wise uses of different farm machinery
are as follows

Sl Farm Activity Uses

no
1 Implements for Land Preperation
2 Sowing /Planting Implements
3 Implements for Inter cultivation
4 Plant Protection equipments
5 Harvesting and Threshing
6 Post Harvesting and Agro
processing
Land preparation for uniform sowing
besides conserving water and soil.
Savings on input requirement beside
uniformity in depth of sowing.
Weed control
Management of pest and diseases
Better quality and quantity produce

The specific objectives are:

1. In order to address the constraints in land preparation and development, by providing

Farm machinery and equipments on Custom Hire Service basis.
2. To encourage in-situ moisture conservation and to harness the residual moisture of
Kharif season for Rabi Pulses and Oilseeds.
3. To enhance the production and productivity of the crops.
4. To provide services of High Tech Farm Machinery to small and marginal farmers.
5. The Department of Agriculture proposes to establish 186 Custom Hire Service
Centres at hobli (Except in urbanised hobli) level in all the 30 districts of the State
(Annexure IV).
List of Farm Machinery that are proposed to be shelfed in the Custom Hire Service Centres
are given below,

Sche. No. Item

A Land Development , Tillage and Seedbed preparation
Equipments
1. Tractor
2. Power Tillers
3. M.B.Plough
4. Rotavator
5. Disc Plough
6. Disc Harrow
7. Cultivators
8. Sugarcane Stubble shaver cum cultivator
9. Leveler Blade
10. Cage Wheel
11. Blade Harrow
12. Laser Guided Land Leveller
B. Sowing and Planting Equipments
13. Paddy Planter
14. Furrow Opener/Ridger
15. Seed cum Fertiliser Drill
16. Zero Till Drill
17. Roto Till Drill
18. Sugarcane Sett Cutter & Planter
19. Raised bed Planter/ Ridge Furrow Planter
C. Inter Cultivation Equipments
20. Grass/Weed Slasher
21. Rice Straw Chopper
D. 22. Tractor/Power tiller Mounted / Power operated Hi-tech
P.P. equipments
E. Harvesting & Threshing Equipments
23. Multi Crop Thresher
24. Groundnut Digger
25. Groundnut Pod Stripper/ Thresher
26. Winnowing Fan
 27. Sugarcane Stripper
28. Sugarcane Harvester
29. Harvester/ Reaper
30. Combined Harvester
31. Tractor Mounted Combines
F. Equipments for Residue Management
32. Sugarcane Thrash Cutter
33. Coconut Frond Chopper
34. Chaff cutter
G. Post Harvest & Agro Processing Equipments
35. Dal Processor
36. Mini Rice Mill
37. Mini Oil Expeller
38. Ragi Polishing Machine
39. Ragi Cleaning Machine
40. Sugarcane Crusher Unit
41. Flour Mill
42. Pulverisers
43. Rava/Cattle Feed Machine
44. Chilly Pounding Machine
45. Shavige/Vermicelli Machine
46. Sugar Cane Juice Making Machine
47. Wheat Polisher
H. 48. Diesel Pumpsets

Note: The selection of Farm Machinery for the purpose of eshtablishment of Custom Hire
Service Centres will be based on the local needs and suitability to soil condition.
 APPLICATION FORM

From: ………………………………….
…………………………………..
…………………………………..
…………………………………..
Date:

To,
The Director of Agriculture
Department of Agriculture
Sheshadri road, Banagalore-01
Karnataka
Dear Sir,

Sub: e based- Expression of Interest is invited by the Department of Agriculture for

the year 2014-15.
Ref: Your advertisement in News paper and Tender notice on e-Procurement Website

This is in connection with the above mentioned subject and reference. Having
understood the procedure for Expression of Interest invited by the Department of Agriculture
for establishment of ____________ Custom Hire Service Centers in the State during the year
2014-15 and scope of work of the Charitable Trusts (Registered under Section 25 of
Companies Act, 1956) /Organisations/Non Government Organisations (NGO), we would like
to express our willingness for establishment of Custom Hire Service Centers in the State
during the year 2014-15.
Kindly find enclosed here with our application and details of our Charitable Trusts
(Registered under Section 25 of Companies Act, 1956) /Organisations/Non Government
Organisations (NGO) in the prescribed format for further needful action.
Thanking you,

Yours faithfully
 FORMAT-1

APPLICATION FORM FOR THE SELECTION OF CHARITABLE TRUSTS (REGISTERED

UNDER SECTION 25 OF COMPANIES ACT, 1956) /ORGANISATIONS /NON GOVERNMENT
ORGANISATIONS (NGO) FOR ESTABLISHMENT OF CUSTOM HIRE SERVICE CENTRES

1 Name of the Charitable

Trusts (Registered under
Section 25 of Companies
Act,1956) /Organisations/
/Non Government
Organisations (NGO)
2 Address
Registered Office

Tel. No.
Fax. No.
E-mail
3 NAME OF THE HEAD
{In charge of the Charitable
Trusts (Registered under
Section 25 of Companies
Act,1956) /Organisations/
Non Government
Organisations (NGO)}
Tel.No.
Fax. No.
E-mail
4 Year of establishment of the
Charitable Trusts
(Registered under Section
25 of Companies
Act,1956)/Organisations/
Non Government
Organisations (NGO)
 5 Year of commencement
6 Turn Over for the last three
years
2010-11
2011-12
2012-13
7 Professional tax Registration
no.
8 Service tax registration no.
9 Permanent Income Tax A/c.
No.
10 Name of the District/ Taluk/
Hobli applied for
11 Organizational profile : Enclose full details in separate page
12 Details of Bank Guarantee Date:
Name of the Bank:
Amount:

Full Name & address:

Designation/Status:

Signature

Official Seal with Address: __________

Place:
Date:
 CHECKLIST OF ENCLOSURES (Tick the items)

Sl. No Items Details

1. EMD in the form of Bank Guarantee Original

2. Copy of Certificate of Registration of the Enclosed/Not

Trust Enclosed.
3. Copy of Professional tax Registration no. Enclosed/Not
Enclosed.
4. Copy of Service tax registration no. Enclosed/Not
Enclosed.
5. Copy of Permanent Income Tax A/c. No. Enclosed/Not
Enclosed.
6. Annual Audit Report Details of the Charitable Enclosed/Not
Trust for the last three years Enclosed.
7. State / National Awards (if any) received. Enclosed/Not
Copy to be enclosed Enclosed.
8. Brife Note on the Charitable Enclosed/Not
Trust/Organisations/Non Government Enclosed.
Organisations (NGO)