TAMIL NADU GENERATION AND DISTRIBUTION CORPORATION LIMITED

ACCOUNTS BRANCH
144, Anna Salai,
Chennai – 600 002.
Circular Memo. No. CFC/Gl/FC/P/DFC/W/AAO/T/D27/PR No.106 /17, Dt.07.07.2017.

Sub: TANGEDCO –Tender –Rollout of GST- Instructions for evaluation of

tender proposals until clarification from HQ Accounts Branch-
Issued - Reg.

Ref: CMD’s Note approval dated 07-07-2017.

xXx

Consequent to the roll out of GST with effect from 01-07-2017, the

provisions stipulated for tender evaluation in the Tender Transparency Rules 2000,

under Clause 29.(d) (iv) viz (Inclusion of CST and exclusion of TNVAT while

evaluating the L1 bidder, in case where the bidders are both from outside and inside

the State of Tamil Nadu) requires to be amended suitably in order to accommodate

the provisions of the GST. It is ascertained that the subject in this regard is under

the perusal of the Government and orders from the Government in this regard is

expected shortly.

Various representations are being received at Head Quarters Accounts Branch

seeking clarification on the procedures to be adopted for evaluation and placing of

orders in respect of tenders for which bid proposals were received prior to

01-07-2017 (Pre-GST period) with rates and taxes quoted as prevalent in the Pre

GST norms. Representations have been received insisting with reasons that

Contracts / Procurements which are urgent in nature shall have to be awarded /

procured and could not be deferred for a longer period until clarification from the

authorities concerned (GoTN).

Procedures to be adopted for evaluation in Tender proposals:

The following procedures may be adopted for evaluation of Tenders (which are

urgent in nature) until further instructions are issued from Accounts Branch Head

Quarters.

1) In respect of procurement:

Ex works price + Applicable rate of GST+ Packing & Forwarding charges +

Freight & Insurance + any other charges (if any) shall be taken as the all

inclusive price in respect of all participant bidders (whether from inside the

state or outside the state).

2) In respect of Works Contract:

In respect of works contract where both supply of goods and services are

involved, the respective GST for the Services to be rendered shall be taken

for evaluation purpose.

In respect of contract where only services are involved, the respective GST

for Services to be rendered shall be taken for evaluation purpose.

3) Approval of Draft Tender Specifications – For new tenders to be

floated after 01-07-2017, the evaluation clause in the tender specification

is to be modified incorporating that the evaluation will be done based on

the GST rates quoted by the bidders in place of the existing provision of

“Exclusive of TNVAT and inclusive of CST wherein the Tenderers are from

the State of Tamil Nadu and from Outside the State of Tamil Nadu

respectively.”
 4) Opening of Price bids - Price bids opened either prior to

01-07-2017 or after 01-07-2017 are to be evaluated taking into account

the rates of taxes under the GST norms. However, consent of the eligible

bidders have to be obtained for evaluation as per the GST norms. In case

the bidders are not willing to submit such consent, then their bids shall be

rejected.

5) In view of the fact that CST, TNVAT besides others are subsumed by

GST, amendment / Clarification needs to be issued to the existing Tamil

Nadu Transparency in Tender Rules -2000 in respect of Clause 29(d)(iv)

besides others sections. Therefore, until receipt of clarifications /

amendment from the GoTN, and in view of the urgent requirement to

process Tenders in TANGEDCO, the evaluation of Tenders shall be done as

discussed in para of this note.

6) Placing of Orders – In the event of placing orders, the following shall be

included in the proposed orders in respect of admissible rates of taxes and

duties. “Appropriate rate of GST shall be admitted in lieu of (all taxes

and levies replaced by GST) Excise Duty, CST and TNVAT Service Tax etc,

as per provisions of the rules”.

The above may be adopted for evaluation of Tenders until further instructions
are issued from Accounts Branch Head Quarters.
Signed xxx
(M.MANOHARAN)
Director / Finance (a/c)
To
All Directors / TANGEDCO & TANTRANSCO
All Chief Engineers
All Superintending Engineers
Copy to Executive Assistant to Director /Distribution.
Copy to Executive Assistant to Director /Generation.
Copy to Executive Assistant to Director /Finance
Copy to Executive Assistant to Director Project.
Copy to the Executive Engineer/Chairman cum Managing Director’s Office.
The Secretary/TANGEDCO/Chennai -2.
The Director General of Police/Vigilance/TANGEDCO/ Chennai-2.
The Director / Computer/TANGEDCO/Chennai – 2.
All Financial Controllers.
The Chief Internal Audit Officer / BOAB/TANEDCO/Chennai-2
The Resident Audit Officer/TANGEDCO/Chennai-2.
All Deputy Financial Controllers.
The Assistant Personnel Officer/Tamil Development/ Chennai -2.
for publication in the TANGEDCO Bulletin (2 copies)
The Accounts Officer / Establishment, O/o CFC/TANGEDCO/Chennai-2 (2 copies)

/ FORWARDED BY ORDER /

Signed xxx
(K. SUNDARAVADHANAM)
CHIEF FINANCIAL CONTROLLER / GENERAL