INDIAN OIL CORPORATION LIMITED

ASSAM OIL DIVISION

DIGBOI

Guidelines & Instructions

Issued By:

DEPUTY GEENERAL MANAGER(MATERIALS)

INDIAN OIL CORPORATION LIMITED
ASSAM OIL DIVISION
DIGBOI – 786 171, ASSAM

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1. Tender Fee: NIL

2. Earnest Money Deposit (EMD): For details, refer ‘Special Instruction to the
Bidders (SITB)’
 EMD should be submitted online.

 EMD can also be submitted offline in the form of a Bank Guarantee in case the EMD
amount is more than INR 1 lac (Indian National Rupees One Lac). The Bank Guarantee
for this purpose shall have to be as per our format only (Refer Annexure-I of our
General Purchase Conditions). In such a case, the BG should be sent directly by the
issuing bank to us.

 EMD is to be furnished along with techno-commercial bid (i.e. Part-I) only. Bids
without EMD will be liable for rejection.

 EMD exemption is allowed in case of 

 Govt. organizations/ Public Sector Undertakings of the Central/ State

Governments.

 Micro & Small Enterprises (MSE) registered with agencies as mentioned in

the Chapter- 16 below.
 Joint Venture companies of Indian Oil Corporation Limited are also exempted
from submitting EMD.

 EMD of the successful bidder shall be released after submission of Performance

Bank Guarantee.

 EMD of bidders disqualified during techno-commercial bid evaluation shall be

released immediately after approval of Price Bid Opening

 EMD of bidders qualified in the techno-commercial bid but unsuccessful in the

price bid stage shall be released immediately after final approval of the ordering
proposal by the competent authority

 In case a bidder alters / modifies / increases his quoted price suo-moto /

withdraws his bid suo-moto after opening of technical Bids and that too within his
offer validity period, his EMD shall be forfeited and his offer shall be liable to be
rejected. Such a bidder may be debarred from participating in future tenders and
may also be put in our “Holiday List.”

 EMD shall be forfeited in case the successful bidder fails to deposit the
performance bank guarantee and to execute the contracts within the stipulated
period. Such a bidder may also be debarred from participating in future tenders
and may also be put in our “Holiday List.”

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3. General Guidelines to the vendor for submitting the quotation:
 Bids should be submitted online (https://iocletenders.nic.in) by the bidder in
complete accordance with our tender document and its attachments. Bids
should be submitted in “two bid system” i.e. “un-priced bid” and priced bid”,
unless otherwise specified in the Notice Inviting Tender (NIT).
Part-I: Un-priced bid complete with all technical & commercial details other than
the price shall be submitted online essentially containing the following
documents:

a. Statement of confirmation towards acceptance of tender requirements.

b. Documentary evidence of the bidder’s credentials as specified in the

Qualification Criteria.

c. Other proof of documents as required & related to the Tender.

d. Supporting documents towards due authorization of the person uploading the bid
on behalf of the bidder.

e. Statement of confirmation towards acceptance of the technical specifications of

the tender.

f. All commercial details like Price basis (clearly specify F.O.R./Ex-works Point),
packing & forwarding charges, GST, Freight Charges, Transit Insurance,
Delivery schedule, validity of offer, Payment terms, confirmation regarding Input
Tax Credit on GST etc. are to be mentioned in the Agreed Terms & Conditions
(ATC) of the tender document.

g. Agreed Terms & Conditions as per specified format.

h. Agreed Terms & Conditions towards acceptance of IOCL Special Conditions of

Contract (SCC), if asked for separately.

i. Unpriced copy of offer for Post Warranty Comprehensive Annual Maintenance

Contract or Non-Comprehensive Annual Maintenance Contract, as and if
specified in the Price Bid.

j. Un-priced copy of offer for any other requirement, as and if specified in the Price
Bid.

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Part-II: “Priced bid”: Only Price Schedule (BOQ) with basic prices duly filled in.
 The validity of offers should be for a minimum period of Four (4) months from the
opening date of this enquiry, unless specified otherwise. IOCL reserves the right to
reject those bids which don’t meet this requirement. However, in case we require
extension of validity of offers due to some unforeseen conditions, the same should be
extended at the same price, terms & conditions as quoted in the original offers.
Failing to meet this requirement will render the bids liable for rejection.

 Any effort by a bidder, consultant or representative, however described, to influence

the owner in any way concerning scrutiny / consideration / evaluation / comparison
of the bid or decision concerning the award of the contract shall entail rejection of
their bid.

 IOCL reserves the right to accept or reject any tender in part or in full without assigning
any reason whatsoever. IOCL also reserves its right not to accept the lowest rates
quoted by the tenders and also to split the order as per our requirement and as well as
to allow purchase preference to Public Sector Undertakings/SSIs or to any other
categories as per the Govt. of India guidelines from time to time.

 Please note that the tender can be cancelled without assigning any reason and in
such cases, no compensation will be paid for the efforts made by the bidders.

 The price bid (BOQ) should be uploaded strictly as per the format available with the
tender in the website, failing which the offer shall be rejected.

 In case of tampering of e-documents, the bid shall be rejected outright and EMD
forfeited without prejudice to any other rights or remedies available to IOCL.

 Bids will be accepted only through the e-tender portal. Tender issuing authority is
not responsible for the delay / non-downloading of tender document by the
recipient due to any problem in accessing the e-tender website. The tender issuing
authority is also not responsible for delay in uploading bids due to any problem in
the e-tender website.

 Bidders should quote competitive prices considering the fact that price
negotiations, if required, shall be held with the lowest techno-commercially
qualified bidder only.

 Bidders shall set their quotations in firm figures and without qualifications or
variations or additions in the terms of the tender documents. Bids containing qualifying
expressions such as “subject to minimum acceptance” or “subject to prior sale”, or
any other qualifying expression or incorporating terms and conditions at variance with
the terms and conditions incorporated in the tender documents shall be liable to be
rejected.
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  IOCL shall not consider any suo-moto price reduction from any bidder for the
purpose of evaluation. However, any such reductions shall be availed of should the
concerned bidder turns out to be the lowest techno-commercially acceptable bid
on the merit of their bid without considering such suo-moto reductions.

 For matters of interpretation, Clause Nos.-1.2 & 1.3 of IOCL General Purchase
Conditions shall hold good.

 Unless otherwise specified, the entire system including the components shall be
under a warranty for a minimum period of 12 months from the date of commissioning
or 18 months from the date of supply, whichever is earlier.

 Offers can be submitted either by the Vendor directly or by their Agent on behalf of
them, but not both. The Agent should represent only one Vendor and he shall not be
allowed to quote on behalf of another Vendor for subsequent or parallel tenders for
the same job. An agent must submit valid letter of authorization or Power of
Attorney in original, issued by their principal.

 GST (Goods & Service Tax) will be paid extra at actual within the contractual delivery
date for indigenous supply. Any increase in the rates of GST beyond the contractual
completion date or approved extended contractual completion time will be borne by
IOCL to the extent necessary documents are passed on to IOCL and IOCL is in a
position to get the Input Tax Credit from the concerned authorities. Similarly,
implications due to change of rate in any other existing tax or introduction of any new
tax shall be reimbursed, if applicable, within the contractual period against
submission of necessary document. If the above variation is made applicable after
opening of the price bid, the same shall also be reimbursed against documentary
evidence. However, the benefit of any reduction must be passed on to IOCL.

 In case the bidder seeks Foreign Exchange Variation, the details of CIF value of
each currency and conversion rate of each foreign currency as on price bid
opening date, considered in their offer should be specified in the offer. However,
such FE variation will have a maximum ceiling of 5%, which also will then be
loaded for evaluation, and if the actual exchange rate is less than the quoted rate, the
differential amount shall be passed on to IOCL(AOD) .
 They shall also submitted English version of all documents duly certified by their
Ambary/other authorized origination in India.

3.1 “ Single Tender Only Permitted

3.1.1 Each tenderer / bidder can submit only one tender / bid for one package. The names of
specialized sub-contractor(s) may, however, appear in different offers submitted by different
tenderers.

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3.1.2 (i) A person shall be deemed to have submitted more than one bid if a person bids in an
individual or proprietorship format at and/or in a partnership or association of persons format and/or
in a company format.

(ii) A company shall for this purpose include any artificial person whether constituted under the laws
of Indian or of any other country.

(iii) A person shall be deemed to have bid in a partnership format or in association of persons format
if he is a partner of the firm which has submitted the bid or is a member of any association of
persons which has submitted a bid.

(iv) A person shall be deemed to have bid in a company format if the person holds more than 10%
(ten percent) of the voting share capital of the company which has submitted a bid, or is a director of
the company which has submitted a bid, or holds more than 10% (ten percent) of voting share capital
in and/or is a director of a holding company of that company which has submitted the bid.

3.1.3 By making a bid pursuant to the Tender Documents, the bidder / tenderer shall be deemed to
have declared that the bidder / tenderer has not made any other bid or a multiple bid as understood
or deemed in terms of this clause.

3.1.4 All the multiple bids of a bidder shall be rejected and the Earnest Money Deposit for all such
bids shall be forfeited, not by way of penalty or liquidated damages but by way of reimbursement of
the pre-estimated costs likely to be incurred by the OWNER towards bidding process and in the
scrutiny and evaluation of bids.

4. Signing of Bid:
The bid shall contain the name, residence and place of business of the person(s) making offer
to the tender and shall be signed digitally by the bidder. Partnership firms shall furnish the full
name of all partners in their bid and shall also annex a copy of the Partnership Deed alongwith
their bid. The person signing the tender shall state his capacity, besides making it explicit as to
the source of his ability to contractually bind the bidder. The power of attorney or
authorization or other document constituting adequate proof of the ability of the signatory to
bind the bidder shall be annexed to the offer. IOCL may reject outright any bid unsupported by
adequate proof of the signatory’s authority. When a bidder uploads documents written in a
language other than English, the figures quoted for should also be accompanied with words
written in the same language.

5. RETIRED COMPANY DIRECTORS:

No Director of IOCL is allowed to bid for a period of two years after his retirement from the
employment of IOCL, without the previous permission of IOCL. The Contract if awarded is
liable to be cancelled if the bidder is found at any time to be such a person and has not
obtained the permission of IOCL before submission of the bid to the tender. Any bid by a
person aforesaid shall carry a disclosure thereof on the tender and shall be
accompanied by a copy of the document by which the requisite consent was given. Such
disqualification shall apply to every partner of a partnership firm. The bidder is required to
state whether he is a relative of any Director of IOCL, or the bidder is a firm in which any

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Director of IOCL or his relative is a partner or the bidder is a company in which any Director
of IOCL is a member or Director.

6. ADDENDA:
Addenda to the tender documents may be issued prior to the date of opening of the tender to
clarify documents or to reflect modifications in the designed or contract term. Such addendum
(s) shall be hosted in our website only in the form of “Corrigendum”. Bidders will have to
download the same for necessary action. All such addendum(s) issued shall form part of Tender
Documents.

7. Completion schedule (supply/installation & commissioning, as applicable):

The bidder shall have to complete the entire job as per the scope mentioned in the tender
document within the time specified in the tender. The completion schedule shall be counted
from the date of issue of Letter of Acceptance (LOA) or Purchase Order by IOCL (AOD),
which is earlier. Cases where prior approval of drawing/ QAP etc. is necessary before
execution of orders, the bidders must explicitly indicate in their bids, the time they would
require from the receipt of orders, to furnish such documents for approval of IOCL.

8. Exceptions and/ or Deviations:

Exceptions and/ or Deviations to tender specifications, General Purchase Conditions & Special
Conditions of Purchase, if any, should be clearly spelt out in a list of Exceptions/ Deviations
Statement as per attachment and the same is to be submitted alongwith the offer for
consideration of IOCL. IOCL shall reserve the right to accept or reject such exceptions or
deviations in part or in full.

9. Advance Payment:
Advance payment clause is not acceptable to IOCL. However, if any advance payment is
required to be made on the merit of a procurement proposal, it will be interest bearing (1%
above Prime Lending Rate of State Bank of India) and that too against submission of a Bank
Guarantee (as per our specified format) for an equal amount. In such a case, the BG should be
sent directly by the issuing bank to us.

10. Past Experience:

Bidders must enclose priced copies of recently executed purchase orders for similar/ almost
similar items for any organization (Govt/ Private) for establishing reasonability of the quoted
price.

11. Registration Status:

Bidders must indicate MSE registration status, if applicable, with valid supporting documents.

12. BANK GUARANTEES:

All the Bank Guarantee(s) as stated above will be furnished from a Nationalised/Scheduled bank.
The performance bank guarantee(s) shall be as per the Proforma appended with GPC. All bank
guarantees should be submitted by Seller's bankers directly to the Owner. Seller shall enclose
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 copy of bank guarantee(s) along with the invoice. Bank Guarantee(s) shall be submitted as per
the following details:-

i) SELECTION OF BANK

a) BG upto Rs. 20 Million can be accepted if it is issued by an Indian branch of any scheduled bank
appearing in the Second Schedule to the RBI Act, 1934.

b) BG of above Rs. 20 Million can be accepted if it is issued by an Indian branch of:

1) Any Nationalized / PSU bank appearing in the Second Schedule to the RBI Act, 1934.

Or

2) Any scheduled bank (other than a Nationalized Bank / PSU bank) having at least desired
Credit Rating at the time of acceptance of BG:

Desired credit rating is defined as under:

In case of foreign banks:

If the tenor of BG is more than 1 year: credit rating of ‘A' of Moody's or equivalent
If the tenor of BG is upto 1 year: credit rating of 'P-1' of Moody's or equivalent i.e. highest short
term rating

In case of Indian banks:

If the tenor of BG is more than 1 year: credit rating of: 'AA' of CRISIL or equivalent
If the tenor of BG is upto 1 year: credit rating of 'A 1 +' of CRISIL or equivalent i.e. highest
short term rating

Apart from above, BG, irrespective of its amount, issued by any other bank including but not
limited to non-scheduled banks, foreign branches of scheduled banks and foreign branches of
foreign banks, can be accepted provided such BG is counter guaranteed by any bank mentioned
above at (i) b.

ii) CREDIT RATING

The Vendor shall note that, in case of acceptance of BG issued or counter guaranteed by a
bank mentioned at para (i) b 2, if the credit rating of such bank falls below the Credit Rating
mentioned under clause (i) b 2 during the validity period of BG, the Vendor shall either submit
a fresh BG or get the existing BG counter guaranteed, at its own cost, through a bank
mentioned above at (i) b (having at least desired Credit Rating as mentioned above, if
applicable). In case of non-submission of bank guarantee(s), without prejudice to any other
right or remedy available to the owner, the owner shall be entitled to encash the bank
guarantee(s).

iii) The vendor at the request of the owner extend the validity of the Bank Guarantee(s) for such
further period(s) as may be required failing which without prejudice to any other right or

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 remedy or remedy available to the owner, the owner shall be entitled to en-cash the bank
guarantee(s).

iv) The vendor to ensure the validity of all bank guarantee(s) as stipulated else-where in the
bidding documents/contract and no payments shall be released to the vendor, if the validity of
the bank guarantee(s) is less than 30 days unless otherwise specifically intimated to the
vendor.

Beneficiary Bank details for BG purpose.

Beneficiary Name Indian oil Corporation Limited

Address Digboi
Bank & Branch Name State Bank of India (SBI), Digboi Branch
Bank Address Digboi
Branch Cide 06000
IFSC Code SBIN0006000
Account Number 10776289584

MODE OF PAYMENT & ACCEPTANCE

CRITERIA:

Bidders may note that IOCL (AOD) shall release all payments through e-payment mode (RTGS /
NEFT/ ACCOUNT TO ACCOUNT TRANSFERS) only and NOT through any other mode. Bidders
must therefore, submit their bank details as per format (attached with Commercial Annexures)
without fail. Besides, all bank charges incidental to payment against dispatch documents
through bank (if applicable) shall be to vendors account only.

IOCL PAYMENT TERMS (OVERRIDING TERMS OF PAYMENT CLAUSE IN THE IOCL

GENERAL PURCHASE CONDITION) SHALL BE AS UNDER:

100% WITHIN 30 DAYS OF RECEIPT, ACCEPTANCE, INSTALLATION &

COMMISSIONING (IF ANY) AT SITE.

13. HOLIDAY LISTING / BLACKLISTING:

Please confirm you have not been banned or de listed by Indian Oil
Corporation Limited or its Administrative Ministry (i.e. Ministry of
Petroleum & Natural Gas, Government of India). If you have been
banned, then this fact must be clearly stated.

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 Confirm that the Proforma Of Declaration Of Black Listing / Holiday
Listing has been attached.

NOTE
The tenderers should respond to the tender either by submitting their bids or by explaining the
reasons for non-submission of the offer. In case there is no response either way continuously
for 3 limited tenders, names of such tenderers shall be removed from the list of Vendors.

14. 0 EVALUATION CRITERIA FOR COMPARISON OF BIDS:

14.1 Following costs, taxes, duties etc., as applicable, shall be used for evaluation of bids:

 Basic ex-works cost (including special tools and tackles),

 Cost of mandatory and commissioning spares, if any
 Third party inspection (TPI) and Other Inspection charges, if extra
 Packing & Forwarding charges [ P&F ] , if extra {Biodegradable packing material should
preferably be used for supply of materials}
 FOB charges in bidder’s country (in case of foreign vendors),
 All taxes and duties applicable in India for both Indian and foreign bidders,
 Port handling charges (for foreign vendors),
 Freight (including inland freight charges in case of foreign bidders),
 Transit Insurance @ 0.5% of landed cost,
 Testing charges,
 Site work charges, if applicable
 Site supervision services charges (for number of days as informed in tender), training
charges, if applicable
 AMC charges, if applicable
 Technical and commercial loadings, as defined in the Tender document.
 Loading for cylinder rental charges, if applicable
 Any other charges indicated by the bidder

Bid evaluation will be done considering GST rates and HSN quoted by the bidder. GST rates and HSN
quoted by the bidder shall be treated final and bids shall be evaluated on Gross tax basis i.e. after
including amount of GST. Bidder to note that any higher rate of tax actually invoiced shall be adjusted
in price.

In case of SINGLE BID Tender, if the bidder is silent on any Tender Clause which calls for commercial
loading, it will be assumed that the bidder has not accepted the specific clause and specified commercial
loading shall be done for evaluation purpose. No confirmation shall be sought by IOCL after opening of bids.
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{If Deviation Sheet is filled with No Deviations or Nil or Blank, then it will be assumed vendor has accepted
such clauses}

Suo moto price discounts and discounts for prompt payments shall not be used for evaluation.

In case of a tie of evaluated cost between two or more L1 bidders, discount may be asked from all the
L1 bidders. In case there is still a tie, quantity may be equally divided amongst the bidders. In case
quantity cannot be divided, the L1 bidder with the maximum turnover may be ordered the full
quantity.

Prices for Post Warranty Comprehensive Annual Maintenance Contract (PWCAMC), if any mentioned in
Material Requisition/Technical Specifications/Scope of Tender or equivalent term , shall be considered for
evaluation. However, Purchase order for PWCAMC shall be placed separately by IOCL.
Evaluation shall take into consideration Government of India guidelines with respect to Purchase Preference
applicable to Central PSUs, MSEs as well as any applicable Government of India Guidelines.
Ministry of Micro, Small and Medium Enterprises, Government of India have notified the public procurement
policy (PPP), 2012 for facilitating promotion and development of Micro and Small Enterprises. Guideline for
the same is appended under Miscellaneous Policies, which shall be complied with for evaluation and
ordering.
Testing and Inspection charges:
Goods and Services shall be subject to stage wise and final inspection by any of the Third Party Inspection
(TPI) agencies (listed in the Instructions to Bidders), and TPI charges shall be included in quoted prices, and
no additional charges shall be paid by Owner.
Similarly, all built in import content (if applicable) shall also be subject to inspection by TPI agencies listed in
the Instructions to Bidders, in the country of origin of the import content, and charges for the same are
included in quoted prices, and no additional charges shall be paid by Owner.
It will be bidder’s responsibility to arrange for third party inspection (if applicable for tender) and submit third
party inspection release note on time. No time extension shall be allowed by IOCL for any delay/lapse in this
regard

14.2 Where only Indian Bids are under comparison

14.2.1 Bids shall be evaluated after considering prices quoted for the components relevant to indigenous
supplies as indicated above and the SGST & CGST or IGST quoted by the Bidder in ATC.
14.2.2 Site supervision services for required number of days shall be used for evaluation.
14.2.3 Bidders shall have to quote firm freight charges upto Refinery ( Stores ) / Project site.
14.2.4 If a supplier/bidder does not quote freight charges and indicates that the freight is on to pay basis or
“extra at actual” then his ex-works price shall be loaded with the maximum freight charges quoted by other
bidders or pro-rated (with respect to approximate distance) on maximum freight charges quoted by other
bidders or by 5% (for items other than pipes) or 7% (for pipes), whichever is more. After loading, if the same
Bidder becomes L1 (lowest) then the order will be placed based on Freight Charges payable extra at actual
subject to maximum freight charges by which the prices of the L1 bidder has been loaded.
14.2.5 If a supplier/bidder does not quote Third Party Inspection (TPI) charges and indicates that the TPI is
on to pay basis or “extra at actual” then his ex-works price shall be loaded with the maximum TPI charges
quoted by other bidders. After loading, if the same Bidder becomes L1 (lowest), then the order will be placed
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based on TPI Charges payable extra at actual subject to maximum TPI charges by which the prices of the L1
bidder has been loaded.
14.2.6 When a bidder does not mention anything about the freight component and TPI Charges, the same
shall be considered as “nil” and no further confirmation from vendor shall be sought. Evaluation and ordering
shall be done considering freight charges as Nil.
14.2.7 If bidder has mentioned freight & TPI as “quoted” in the unpriced bid / Annexure to Agreed terms &
Conditions (ATC) but has not mentioned freight & TPI charges in priced bid / stated the Percentage Freight &
TPI in Annexure to ATC, as asked to quote in the tender (bidder may be asked to quote freight & TPI charges
in the priced bid or the bidder may be asked to quote freight & TPI charges in percentage of basic price in
Annexure to ATC), then the basic price quoted shall be considered as inclusive of freight & TPI charges and
no further confirmation from vendor shall be sought. Evaluation and ordering shall be done considering freight
& TPI charges as Nil.
14.2.8 Where bidder has quoted firm freight charges, documentary evidence of freight is not required.
Bidder shall be paid as per freight quoted by them.
14.2.9 In case a Bidder declares that he is not required to be registered under GST laws and Rules, he
shall be treated as “Unregistered Taxable Person”. In such case, Owner is liable to pay GST under reverse
charge and therefore for the purpose of evaluation, bid shall be evaluated after considering GST Rates and
Service Accounting Code (SAC) as determined by the Owner.
14.2.10 In case a Bidder declares that he has applied for GSTIN registration at the time of submission of
Bid but GSTIN is not available, he must attach a copy of Application Reference Number (ARN) as proof of his
declaration. And in such cases, Bid shall be evaluated after considering GST Rates and HSN Code / Service
Accounting Code (HSN / SAC) as determined by the Owner if Bidder has not confirmed or quoted the same.
14.2.11 For Supply of Chemicals/Gases, etc in Cylinders, Loading for cylinder rental charges: Bidders are
requested to provide free rental period of …….… days for supplied cylinders. In case Bidder does not accept
the same or quotes a rent free period less than the no. of days specified in the tender as above, loading shall
be done for differential period for ……… cylinders.
14.2.12 In case of ODC/OWC bidders shall have to mandatorily quote for freight upto Refinery ( Stores ) /
Project site. In case the bidder does not quote the freight charges, their offer shall be liable for rejection of
which IOCL shall be the sole judge.
14.3 Where only Foreign Bids are under comparison
Bids shall be evaluated considering the components relevant to imported supplies as indicated above.
14.3.1 ODC / OWC cases: Unless specifically mentioned otherwise Bidders shall be required to quote firm
freight charges up to Kolkata port or Nhava Sheva { Kolkata/Mumbai Airport in case of Air Transportation }.
Order shall be placed on FOB basis with a provision that IOCL may convert it to CFR basis at a later date, if
required. In case of package items requiring FOT site delivery & site work and services, the port clearance
shall be done by the bidder and custom duty paid on-behalf of IOCL (Paid custom duty reimbursable against
documentary evidence).The material so cleared at port of entry, shall be issued to bidder as free issue
against necessary bond and further loading, local transportation and unloading (on site) shall be done by the
bidder. In case the bidder does not quote the freight charges, their offer shall be liable for rejection.
14.3.2 For other than ODC / OWC cases: Bidders shall be required to quote firm freight charges up to
Kolkata Port. In case a bidder declines to quote firm freight, freight @6% of FOB price for Asia Pacific /
Europe and 9% of FOB price for other places or the highest freight charges quoted by any other bidder
against the Tender, whichever is higher shall be loaded.
IOCL will release the order on FOB basis with freight arrangement by its own freight forwarder but will have
the option of changing to CFR Indian Port at a later date with freight charges payable up to a maximum of

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bidder’s quote. Ocean freight shall have to be kept valid for the entire duration of the order, irrespective of
whether the order has been placed on FOB or CFR basis.
In case of pipes, in case a foreign bidder has not quoted or not included stowage charges, the same shall be
loaded @10% of Ocean Freight.
Bids shall be evaluated on the basis of landed cost / total cost at Site including third party inspection charges
by TPI Agency, transportation charges and applicable taxes and duties in India. Comparison cost shall be
arrived at considering the following:
i) F.O.B. price quoted by the bidder (including stowage charges in case of pipes).
ii) Ocean freight as mentioned above.
iii) Marine insurance @1% of FOB price
iv) Prevailing rate of Customs Duty.
v) All taxes and duties applicable in India.
vi) Port handling charges @3% of FOB value.
vii) Inland freight charges from Port to Refinery ( Stores ) / project site @2% of landed cost at
Port of Entry
viii) Inland Transit Insurance @ 0.5%,

Foreign bids shall be compared considering the Bill Selling Rate released by State Bank of India prevailing as
on the date of price bid opening.

14.4 Where Indian as well as Foreign Bids are under comparison

14.4.1 Domestic Bidders: - Bids shall be evaluated as explained in 14.1 & 14.2 above.
14.4.2 Foreign Bidders: - Bids shall be evaluated on the basis of landed cost at Site as indicated in 14.1
& 14.3 above.
14.5 CGST & SGST or IGST shall not be included in the quoted prices and shall be payable extra at
actuals on submission of Invoice. Payment of per diem charges shall be made after deduction of withholding
tax/TDS.

15.0 COMMERCIAL LOADING OF OFFERS IN CASE OF DEVIATIONS

It may be noted that deviation to commercial terms indicated in this tender document may not be allowed
even though loading has been indicated in this section. This loading shall be applicable only if Owner allows
the deviation to any of the indicated commercial terms.
15.1 BASIS OF LOADING
15.1.1 The Bids shall be loaded on FOT Despatch Point ( Ex Works/Basic plus P&F Charges plus TPI /
Other Inspection Charges ) basis for Indian vendors and FOB Port of Exit basis for Foreign vendors.

15.1.2 Bidders are requested to submit the offer in line with terms and conditions provided in Tender
document.

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15.2 PAYMENT TERMS
15.2.1 The payment terms applicable should be clearly indicated. Loading shall be done on the differential
amounts at a rate 1% higher than IOC's cash credit account rate applicable on the date of issuance of tender
document as defined in the tender for the following periods:
(a) Drawing approval – 80% of the delivery period.
(b) Receipt of raw materials at Supplier’s works – 50% of the delivery period.
(c) 5% against receipt of technical documents after despatch of materials – one month.
(d) Final 10% against despatch document - one month.
(e) Freight charges against despatch documents – Entire freight charges for one month.
15.3 PERFORMANCE BANK GUARANTEE (PBG)
15.3.1 For cases of procurement of piping, electrical and instrumentation bulks and consumables and bulk
chemicals, vendor shall furnish Performance Bank Guarantee (PBG) equivalent to 5% of the order value at
the time of despatch and same shall be as per IOCL’s format & valid till delivery period plus six months. In
case a vendor does not furnish PBG, prorata payment of 5% shall be deducted from vendor’s invoice and
retained for a period of final delivery date plus 6 months.
In case a bidder offers to give a PBG for less than 5% of order value, loading shall be done for
the differential amount.
In case of Differential Amount

Amount Offered by Bidder Loading

a) 5% Nil

Differential between the offered

b) Less than 5%
percentage and 5%

If the subject tender is specifically for lining up of Rate Contract, then provisions of Performance
Bank Guarantee Clause shall be as per SPC.

15.3.2 Wherever applicable for equipments and packages, Performance Bank Guarantee (PBG) shall be
furnished for 10% of the order value unless otherwise specified in the tender documents. PBG shall be as per
IOCL’s format & valid till full defect liability period plus three (3) months claim period.
In case a bidder offers to give a PBG for less than 10% of order value, loading shall be done for
the differential amount.
In case of Differential Amount

Amount Offered by Bidder Loading

a) 10% Nil

Differential between the offered

b) Less than 10%
percentage and 10%

14
15.4 DELAYED DELIVERIES (CONSIDERING GPC CLAUSE OF 0.5% DELAYED ~ 5% TOTAL)
This clause shall be as per Cl. 12 of IOCL’s GPC.

The difference between the quantum as per GPC and that offered by the bidder shall be loaded.
For non-acceptance of this clause or for accepting Liquidated Damage, loading of 5% shall be
done. In case the clause as per IOCL GPC is accepted but with maximum limit indicated as 5% of
undelivered order value (not applicable for package items), loading of 2.5% shall be done.

In case there are different delivery dates for supply and for site job, PRS at applicable rate shall be
applicable, if the vendor has delayed the supply beyond CDD, irrespective of actual date of
completion of contract (Site work).
If subject tendered item is a package item (ordered as a complete system), the price adjustment
shall be applicable on the total contract value of the package and not on the value of the
undelivered portions (even if a billing breakup is approved for the package).

15.5 PRICE VARIATION

15.5.1 Prices mentioned in the Bid shall remain firm and fixed and valid until contractual completion except
in the specific cases where Price Variation Clause with Price Variation Formula has been incorporated in the
Bidding Document.
However if a bidder on his own gives a price variation formula without ceiling or gives a different Price
Variation Formula other than the one given in the Bidding Document, offers of such bidders shall be rejected.
Ceiling shall be loaded for evaluation purpose.

15.6 TAXES/DUTIES:
15.61 However, if a supplier states that taxes/duties are not applicable at present and will be charged as
applicable at the time of delivery then his bid shall be loaded by the maximum rate of taxes/duties applicable
as on the date of bid opening.
15.7 Cost loading in respect of utilities etc. will be considered as per respective MR/Technical
Specification stipulation.

16 Witnessing of bid opening:

Online viewing of bid opening is enabled in our e-portal for the benefit of the bidders. Bidder may
witness the opening of the bids accordingly. In case the specified due date of opening happens to
be a non-working day at IOCL (AOD), Digboi or there is any other unforeseen adverse
circumstances, then the bids will be opened on the next working day. However, there will not
be any extension of bid submission date under such circumstances. Alerts issued from our e-
tendering portal will be considered as sufficient communication in this regard.

15
17. THIRD PARTY INSPECTION CLAUSE:

Bidders must note that pre-dispatch inspection through any IOCL approved Third Party
Inspection Agency (TPIA) will be required at their works before dispatch, if advised for by
IOCL(AOD). Further, the supplied materials will have to be duly supported by the Release Notes
issued by the TPIA. Bidders must also note that organizing such inspection shall be in their
scope.

TPI Release Note shall accompany supplied materials. Please note that proper stamping /
embossing shall be there to establish traceability of the TPI Release Notes with the supplied
materials.

If asked in the tender, Bidders shall QUOTE charges for organizing TPI and the same will form
part of the evaluation process for determining the techno-commercially acceptable lowest bid.

The names of the IOCL approved TPI Agencies is enclosed in the Agreed Terms & conditions
(ATC).

In case, IOCL –AOD decides to arrange the inspection through its approved TPI agency, a
uniform rate shall be loaded for the purpose of evaluation, wherever applicable. In such a case, the
said TPI agency shall be directly paid by IOCL (AOD).

16
18. SITE WORK:
 For execution of Purchase Orders involving site work based on the job requirements, all
security/ safety rules/ regulation/ statutes as prevailing at work site at the time of execution of
the job will have to be strictly complied with. All safety equipment like fire hoses, fire
extinguishers, safety belts, safety shoes, safety helmets etc. are to be provided by the
successful bidder to its site personnel. In the event of any damage or loss or sufferance caused
due to non-observance of any such rules/ regulations, the bidder shall be solely responsible for
the same and shall keep IOCL (AOD) indemnified against all such claims or losses arising out of
the same. Penalties shall be imposed for violation of safety norms as under, in addition to
Holiday Listing if deemed fit by IOCL (AOD).

I. For violation of applicable Safety, Health and Environment related norm, a penalty of
Rs.5000/per occasion.

II. Violation as above resulting in any physical injury, a penalty of 0.5% of the contract value
(maximum of Rs.2,00,000) per injury in addition to Rs.5000 / per occasion as in item-I.

III. Fatal accident, a penalty of 1% of the contract value (maximum of Rs.10,00,000) per
fatality in addition to Rs.5000/per occasion as in item-I.

 All labour law/ statutes/ rules/ regulations including minimum wages act, employees state
insurance, payment of bonus act, employees provident fund, contract labour law etc. are to be
strictly complied with. Bidder will be solely responsible for any claim/ liability arising due to/ on
account / consequent to the workmen engaged by him. Bidder shall keep IOCL(AOD)
indemnified against all such claims of whatsoever nature.

 Bidder at its own expenses shall take out workers compensation insurance to cover any
claim that may be made by bidder’s employees and/ or their heirs and dependents alleging
bodily injuries sustained or death suffered by employees as a result of or in connection with the
performance of any bidder’s obligations under this agreement and will hold IOCL(AOD) and its
employees and representatives harmless from any and all such claims. Bidder’s insurance policy
shall include a waiver clause as to any insurer’s actions against IOCL(AOD), its employees and
representatives.
 The bidder shall keep IOCL (AOD) both during and after the term of agreement, fully &
effectively indemnified against all losses, damages, injuries, deaths, expenses, actions,
proceedings, demands and costs & claims, including but not limited to, legal fees & expenses,
suffered by IOCL(AOD) or any third party for such losses, damages, injuries or death as the
result of a wrongful action, negligence or violation of the job site regulations by the bidder or
its subcontractors or the personnel or agents or either of them.

17
ADDITIONAL INSTRUCTIONS FOR OVERSEAS BIDDERS:
1. Imported materials from outside the country shall be governed by the
Import Policies laid down by the Ministry of Commerce, Government of
India.

2. Guidelines issued by the Government of India from time to time shall be

followed in the matter of involvement of Indian agents. Indian agency
commission, wherever involved, should be clearly indicated in the bids.
Registration of the Indian agents with RBI is a pre-requisite and the
registration details must explicitly be mentioned in the bid.

3. In cases where no after sales technical services of a substantial nature are

required, quotations should be submitted directly by the overseas
manufacturers/suppliers. Offers received through Indian agent or
submitted by Indian agent for and on behalf of foreign vendor will not be
considered in such cases. Even in cases requiring after sales technical
services, an agent in India may have a limited role to play, such as
purchasing tender documents, for which he may be engaged by a foreign
supplier. But such an agent must have a power of Attorney/Letter of
Authority setting out very clearly his role, which should be limited to such
area of activity as purchase of tender documents and attending tender
opening and the payment for their services. Such a power of
Attorney/Letter of Authority as well as agreement should be submitted in
advance for scrutiny and acceptance or rejection.

4. For imports requiring after sales technical services which are of substantial
nature, quotations may be submitted by an agent in Indian Rupees
provided he fulfills the following conditions:-
The agent has been fully authorized to quote on behalf of the foreign
manufacturer/supplier by a power of attorney which is also submitted with
the offer and which must show clearly the nature and extent of the after
sales technical services offered as well as the payment to the agent.
The agent has the requisite infrastructure acceptable to IOCL for providing
the after sales services, such as a well equipped workshop, trained
manpower, testing facilities and stocks of spares, tools etc.

18
5. In all cases, the foreign supplier will be required to disclose in the tenders,
whether he has engaged the services of an agent in India and, if so, to state
the services the agent is to perform and the payment for them, while
submitting his tender.
6. The agency commission payable to the Indian agents in terms of
agreement with their principals/manufacturers shall be paid after
converting in Indian Rupees at the TT rate of exchange ruling on the date
of placement of order which shall not be subject to any further
exchange rate variation.
7. In case of ocean imports, offers should be on “F.O.B. major international
Gateway Sea port of exit” basis. In case of air cargos, offers should be on
“F.C.A. major international gateway of exit” basis. The name of airports
/sea ports, as the case may be, must be mentioned by the bidders in their
bids.
8. Approximate size & gross weight of consignments, hazardous goods
classification, Tariff No. and vendor’s complete bankers’ details should be
mentioned in the offer.
9. In the event of receipt of a purchase order, the vendor shall have to give 30
days’ advance notice for ocean shipping arrangements (45 days for break
bulk cargo) and 10 days for air shipment to enable IOCL’s nominated
freight forwarder for arranging suitable vessel/carrier. The shipper should
give intimation for insurance within three days of effecting the shipment.

10. IOCL Banker details for transactions with overseas bidders/ vendors only :

BANK AD CODE NUMBER 0009998 1000009

BANK IFSC CODE NUMBER SBIN0009998

BANK SWIFT CODE SBININBB175

CUSTOMER IEC CODE 0389022390

CUSTOMER PAN NUMBER AAACI1681G

19
 Preference to domestically manufactured electronics products
In supersession of the above policy, Ministry of Electronics and Information Technology (Meity) has now
notified vide F.No-33(1)/2017-IPHW dated 14.09.2017 has notified that preference shall be provided to
domestically manufactured Electronics Products (DMEP) by all procuring entities in terms of Public
Procurement (Preference to Make in India) order 2017 dated 15.06.2017.

a) The electronics products and percentage of preference to local supplier based on value addition in India
(Le. local content) notified by MeitY vide F.No-33(1)/2017-IPHW dated 14.09.2017 are as under:

Sr No Name of Electronics Products % of Preference

(i) Desktop Personal Computers (PCs) 50%
(ii) Laptop Personal Computers (PCs) 50%
(iii) Tablet Personal Computers (PCs) 50%
(iv) Dot Matrix Printers 50%
(v) Smart Cards 50%
(vi) LED Products 50%
(vii) Biometric Access Control/Authentication Devices 50%
(viii) Biometric Finger Print Sensors 50%
(ix) Biometric Iris Sensors 50%
(x) Servers 50%

b) A supplier whose product meets the minimum local content criteria as prescribed by MeitY vide above
notification dated 14.09.2017 is defined as Local Supplier in terms of Public Procurement (Preference to
Make in India) order 2017 dated 15.06.2017.

c) The percentage domestic value addition in terms of Bills of Material (BOM) required for each of the above
notified products shall be as per the notification dated 14.09.2017.

d) The purchase preference of 50% under this policy shall be available to a local supplier whose quoted price
may be above the lowest quotation (L1 bidder) up to the maximum limit of 20% subject to matching the
L1 price.

In order to have uniform implementation across whole refineries Division, the following modalities shall be
observed in procurement of the notified Electronic Products.

1. The local supplier at the time of bidding shall provide self-certification that the item offered meets the
minimum local content and shall give details of the location(s) at which the local value addition is made.

2. In cases of procurement for a value in excess of Rs. 10 crores, the local supplier shall provide a certificate
from the statutory auditor or cost auditor of the company (in the case of companies) or from a practicing
cost accountant or practicing chartered accountant (in respect of suppliers other than companies) giving
the percentage of the local content.

20
 3. In case of turnkey/sytem integration projects, preference to Domestically Manufactured Electronic
products (DMEP) shall be appliacble only on the value of notified DMEPs forming part of the
turnkey/system integration projects and not on the value of whole project.

4. The criteria for classification as domestic BOM, procedure for calculating local content/domestic value
addition, verification of local content/domestic value addition etc. shall be as per Notification No.
33(1)/2017-IPHW dated 14.09.2017 of Ministry of Electronics and Information Technology.

5. The order of precedence for preference in case of divisible and non-divisible procurement shall be as
under:
 The benefit of Purchase preference under Public Procurement Policy 2012 (PPP-2012 for MSEs)
shall have precedence over DMEP-2017 benefits as is being followed in case of application of PPLC
policy. The bidder shall declare their preference for seeking Purchase Preference benefit as MSE
under PPP-2012 or as Local Supplier under DMEP-2017.

 Abbreviation:
1) MSE- Micro and Small Enterprises
2) DM- Local Supplier
3) GN- Bidder(s) not falling in either category 1 or 2 above.

Here DM,MSE are those who are eligible for purchase preference as per the above mentioned policies.

(a) Where qunatity can be split

Sr no condition Ordering Remarks

recommended
1 When MSE is L1 100% to MSE Nil
2 When DM is L1 and 20% to MSE  If multiple MSEs meet the condition,
MSE is within 15% of 80% to DM the preferential quantity shall be
L1 distributed proportionately amongst
them.
 If all eligible MSEs fail to match L1
rate, 100% quantity shall be awarded
to L-1 DM.
3 (a) When GN is L1 and DM 50% to DM  If the. lowest priced DM fails to
is within 20% of L1, and 50%toGN match L1 rate or accepts less than the
no MSE participated or offered quantity, next DM shall be
MSE quoted more than offered to match L1 rate for the
15% of L1 remaining quantity and so on. In case
quantity is still left uncovered on
local suppliers, then such balance
quantity shall be awarded to L-1 GN.

3(b) When GN is L1 and 20% to MSE
MSE is within 15% and 40% to DM
DM is within 20% of L1 (Le. 50% of
remaining 80%)
 If multiple MSE meet the condition,
the preferential quantity shall be
proportionately distributed amongst
them.
21
 40% to GN  If all MSE fails to match L-1 rate, the
quantity shall be awarded in the ratio
of 50:50 to L1 GN and DM.
 If the lowest priced DM fails to
match L-1 rate or accepts less than
the offered quantity, next DM shall
be offered to match L1 rate for the
remaining quantity and so on. In case
quantity is still left uncovered on
local suppliers, then such balance qty.
shall be awarded to L-1 GN.
Notes:
 All Splits & Purchase Preference will be subject to matching L1 rates.

 In case more than one OM (within 20% of Ll) quote the same rate, the preferential quantity shall be shared
proportionately (to tendered quantity).

 Quantity during splitting shall be rounded to next higher whole number in order of preference.

(b) Where quantity can not be split

Sr no Condition Ordering Remarks

recommended
1 When MSE is L1 100% to MSE Nil
2 When DM is L1 100% to MSE  If all eligible MSEs fail to match L1
and MSE is within rate, 100% quantity shall be awarded
15% of L1 to L-1 DM.
3 (a) When GN is L1 and 100% to DM  If the lowest priced DM fails to
DM is within 20% match L1 rate, next DM shall be
of L1, and no MSE offered to match L1 rate and so on.
participated or In case all DM fail to match L1 rate
MSE quoted more then 100% quantity shall be awarded
than 15% of L1 to L-1 GN.
3(b) When GN is L1 and 100% to MSE  If all such MSE fail to match the L-1
MSE is within 15% rate then 100% shall be offered to
and DM is within OM. If all such OM fail to match L-
20% of L1 1 rate then 100% quantity shall be
awarded to L-1 GN.

Note: All Purchase Preference shall be subject to matching L 1 rates.

22
 Form-1

Format for Affidavit of Self Certification regarding Domestic Value

Addition in an Electronic Product to be provided on Rs.I00/- Stamp Paper

Date:

I S/o, D/o, W/o, Resident of

do hereby solemnly affirm and
declare as under:
That I will agree to abide by the terms and conditions of the policy of Government of India
issued vide Notification No: 33(3)/2013-IPHW dated 23.12.2013.

That the information furnished hereinafter is correct to best of my knowledge and belief and
I undertake to produce relevant records before the procuring authority or any authority so
nominated by the Department of Electronics and Information Technology, Government of
India for the purpose of assessing the domestic value addition.

That the domestic value addition for all inputs which constitute the said electronic product
has been verified by me and I am responsible for the correctness of the claims made therein.

That in the event of the domestic value addition of the product mentioned herein is found to
be incorrect and not meeting the prescribed value-addition norms, based on the assessment
of an authority so nominated by the Department of Electronics and Information Technology,
Government of India for the purpose of assessing the domestic value-addition, I will be
disqualified from any Government tender for a period of 36 months. In addition, I will bear
all costs of such an assessment.

That I have complied with all conditions referred to in the Notification

No.
wherein preference to domestically manufactured electronic products in Government
procurement is provided and that the procuring authority is hereby authorized to forfeit and
adjust my EMD and other security amount towards such assessment cost and I undertake to
pay the balance, if any, forthwith.

I agree to maintain the following information in the Company's record for a period of 8 years
and shall make this available for verification to any statutory authorities.

i. Name and details of the Domestic Manufacturer (Registered Office, Manufacturing unit
location, nature of legal entity)
ii. Date on which this certificate is issued

23
iii. Electronic Product for which the certificate is produced
iv. Procuring agency to whom the certificate is furnished
v. Percentage of domestic value addition claimed
vi. Name and contact details of the unit of the manufacturer
vii. Sale Price of the product
viii. Ex-Factory Price of the product
IX. Freight, insurance and handling
X. Total Bill of Material
Xl. List and total cost value of inputs used for manufacture of the electronic product
xii. List and total cost of inputs which are domestically sourced. Please attach
value addition certificates from suppliers, if the input is not in-house.
xiii. List and cost of inputs which are imported, directly or indirectly

For and on behalf of (Name of

firm/entity)

Authorized signatory

Name
Designation
Contact No.

24
 Annexure-I
PURCHASE PREFERENCE (LINKED WITH LOCAL CONTENT 2017) (PP-LC (refer pg no.
33, which will supersede in case of any contradiction),

The Purchase Preference linked with Local Content (PP-LC) is in tune with Make in India campaign of Govt.
of India in Oil and Gas Sector to incentivize the growth in local content in goods and services. The complete
policy is as below:

In line with the policy, the evaluation modality in case of procurement of goods, services and EPC contracts,
as the case may be, in International Competitive Bidding shall be as under:

1. Definitions –

1.1 Local Content: Local Content hereinafter abbreviated to LC shall be the value of local components in
goods, service and EPC contracts, indicated in percentage.

1.2 Purchase preference: Where the quoted price is within 10% of the lowest price, other things being equal,
purchase preference may be granted to the bidder concerned, at the lowest valid price bid.

1.3 Other definitions as detailed in the policy: http://www.petroleum.nic.in/sites/default/files/pplc.pdf

2. Scope

2.1 This policy benefit shall exclude goods/services falling under Micro, Small and Medium Enterprises
(MSME) (PPP-2012) or Domestically Manufactured Electronic Products (DMEP), as those products/services
are already covered under specific policy. The bidder shall declare their preference for seeking benefit under
PP-LC or MSME or DMEP.

2.2 In case a bidder opts for purchase preference based on PP-LC, the bidder shall not be entitled to claim
purchase preference benefit available to MSE Bidders as applicable for MSE bidders under PPP-2012.
However, the exemptions from furnishing Bidding Document fee and Bid security shall continue to be
available to MSE Bidders.

a. While evaluating a particular bid, bidder’s option (to avail any one out of two applicable purchase
preference policies, i.e., PP-LC-2017 or PPP-2012) will be considered, for price matching opportunities and
distribution of quantities among bidders, the precedence shall be in the following order:-
(a) PPP-2012
(b) PP-LC

For example,
Non divisible item
L1 bidder is non MSE, non PP-LC bidder
L2 bidder is PP-LC (within 10%)
L3 bidder is MSE bidder (within 15%)

MSE bidder shall be given preference to match the L1 price. If bidder matches the L1 price, order shall be
placed on him, otherwise, option for matching the L1 price shall be given to L2 bidder (PP-LC).

Divisible item
25
L1 bidder is non MSE, non PP-LC bidder
L2 bidder is PP-LC (within 10%)
L3 bidder is MSE bidder (within 15%)

MSE bidder shall be given preference to match the L1 price. If bidder matches the L1 price, order shall be
placed on the MSE bidder for 20% of tendered quantity. For the balance quantity (i.e. 50% of tendered
quantity/value) option for matching the L1 price shall be given to L2 bidder (PP-LC). Balance quantity shall be
awarded to original L1 bidder.

For further clarification, in case an item has quantity 4 nos. then 1 no. shall be given to MSE bidder, 2 to PP-
LC bidder and left out 01 no. to original L1 bidder.

b. In case L1 bidder is a MSE bidder, the entire work shall be awarded to him without resorting to PP-LC
bidders.

c. In case L1 bidder is a PP-LC bidder, purchase preference shall be resorted to MSE bidder as per PPP
2012 only.

3. Purchase Preference – Linked with Local Content (LC)

3.1 Wherever the goods/services are procured under this policy, eligible (techno-commercially qualified) LC
manufacturers / LC service providers shall be granted a purchase preference of 10% i.e. where the quoted
price is within 10% of the lowest price, other things being equal, purchase preference shall be granted to the
eligible (techno-commercially qualified) LC manufacturers / service providers concerned, at the lowest valid
price bid.

3.2 Goods: 50% of the procured quantity would be awarded to the lowest techno-commercially qualified LC
manufacturer/supplier, subject to matching with L1, if such bidders are available. The remaining will be
awarded to L1 (i.e. Non Local Content (NLC) manufacturer/supplier not meeting prescribed LC criteria).
However, if L1 bidder happens to be a LC manufacturer, the entire procurement value shall be awarded to
such bidder

3.3 Services/EPC Contracts: The entire contract would be awarded to the lowest techno-commercially
qualified LC service provider, subject to matching with L1, if such bidders are within 10% of the L1 bid and L1
bidder is not a LC service provider.

4. Determination of LC –

4.1 LC of goods

4.1.1 LC of goods shall be computed on the basis of the cost of domestic components in goods, compared to
the whole cost of product. The whole cost of product shall be constituted of the cost spent for the production
of goods, covering: direct component (material) cost direct manpower cost, factory overhead cost and shall
exclude profit, company overhead cost and taxes for the delivery of goods.

4.1.2 The criteria for determination of the local content cost in the goods shall be as follows:

a) In the case of direct component (materiel), based on country of origin;

b) In the case of manpower, based on INR component; and
c) In the case of working facility, based on the country of origin.

26
4.1.3 The calculation of LC of the combination of several kinds of goods shall be based on the ratio of the
sum of the multiplication of LC of each of the goods with the acquisition price of each goods to the acquisition
price of the combination of goods.

4.2 LC of service

4.2.1 LC of Service shall be calculated on the basis of the ratio of service cost of domestic component in
service to the total cost of service.

4.2.2 The total cost of service shall be constituted of the cost spent for rendering of service, covering:

a) Cost of component (materials) which is used.

b) Manpower and consultant cost; cost of working equipment/facility; and
c) General Service cost, excluding profit, company overhead cost, taxes and duties.

4.2.3 The criteria for determination of cost of local content in the service shall be as follows:
In the case of material being used to help the provision of service, based on country of origin;

b) In the case of manpower and consultant based on INR component of the services contract;
c) In the case of working equipment/facility, based on country of origin; and
d) In the case of general service cost, based on the criteria as mentioned in clauses a, b and c above.

4.3 LC of the EPC Contracts:

4.3.1 LC of EPC contracts shall be the ratio of the whole cost of domestic components in the combination of
goods and services to the whole combined cost of goods and services.

4.3.2 The whole combined cost of goods and services shall be the cost spent to produce the combination of
goods and services, which is incurred on work site. LC of the combination of goods and services shall be
counted in every activity of the combination work of goods and services

4.4 Target of Local Content

Items 2018-20 2020-22
Service Contracts 22% 25%
Supply Contracts 22% 25%
EPC Contracts (Others) 35% 40%

The prescribed local content shall be applicable on the date of Notice Inviting tender.

5. Certification and Verification

Manufactures of goods and/or providers of services, seeking Purchase Preference under the policy, shall be
obliged to verify the LC of goods / service / EPC contracts with the provision as follows.

5.1 At Bidding Stage:

5.1.1 The bidder claiming the PP-LC benefit shall be required to furnish an undertaking on bidder’s letterhead
confirming their meeting the Local Content and this undertaking shall be certified as under:

27
  Where the total quoted value is less than INR 10 Crore (100 million)-The LC content shall be self-
assessed and certified by the authorized signatory of the bidder, signing the bid

 Where the total quoted value is INR 10 Crore (100 million) or above.

i. The Proprietor and an independent Chartered Accountant, not being an employee of the firm, in case of a
proprietorship firm.

ii. Any one of the partners and an independent Chartered Accountant, not being an employee of the firm, in
case of a partnership firm.

iii. Statutory auditors in case of a company. However, where statutory auditors are not mandatory as per laws
of the country where bidder is registered, an independent chartered accountant, not being an Employee of the
bidder’s organization.

The onus of submission of appropriately certified documents lies with the bidder and the purchaser shall not
have any liability to verify the contents and will not be responsible for the same.

However, in case the procuring company has any reason to doubt the authenticity of the Local Content, it
reserves the right to obtain the complete back up calculations before award of work failing which the bid shall
be rejected.

5.1.2 Price Break-up

 The bidder shall provide only percentage of the local content in bids.
 Bidder must have LC in excess of the requirement specified above at clause no. 4.4

5.1.3 Undertaking by the bidder:

 The bidder shall submit an undertaking from the authorised signatory of bidder having the power of
attorney along with the bid stating the bidder meets the mandatory minimum LC requirement and such
undertaking shall become a part of the contract.

5.1.4 Statutory Auditor’s Certificate:

 In cases of procurement for a value in excess of Rs. 10 crores, the Undertaking submitted by the
bidder shall be supported by a certificate from the statutory auditor or cost auditor of the company (in
the case of companies) or from a practicing (in respect of other than companies) giving the
percentage of local content.
 However, in case of foreign bidder, certificate from the statutory or cost auditor of their own office or
subsidiary in India giving the percentage of local content is also acceptable. In case office or
subsidiary in India does not exists or India office/subsidiary is not required to appoint statutory
Auditors or cost auditor, certificate from practising cost accountant or practicing chartered accountant
giving the percentage of local content is also acceptable.

5.2 After Contract Award

5.2.1 In the case of procurement of goods and/or services and/or EPC contracts (others) with the order value
less than Rs. 10 crore , the LC content may be calculated (self-assessment) by the supplier of goods and/or
the provider of services and signatory of bidder having the power of attorney.

5.2.2 The verification of the procurement of goods, service or EPC contracts in cases of procurement for a
28
value in excess of Rs. 10 crores, the Undertaking submitted by the supplier/contractor shall be supported by a
certificate from the statutory auditor or cost auditor of the company (in the case of companies) or from a
practicing cost accountant or practicing chartered accountant (in respect of other than companies) giving the
percentage of local content.

However, in case of foreign bidder, certificate from the statutory auditor or cost auditor of their own office or
subsidiary in India giving the percentage of local content is also acceptable. In case office or subsidiary in
India does not exists or Indian office/ subsidiary is not required to appoint statutory Auditors or cost auditor,
certificate from practising cost accountant giving the percentage of local content is also acceptable.

Supplier shall provide the necessary local-content documentation to the statutory auditor, who shall review
and determine that local content requirements have been met, and issue a local content certificate to that
effect on behalf of procuring company, stating the percentage of local content in the goods or service
measured.

5.3 However, procuring company shall also have the authority to audit as well as witness production
processes to certify the achievement of the requisite local content and/or to obtain the complete back up
calculation before award of work failing which the bid shall be rejected and appropriate action may be initiated
against the bidder.

5.4 The Local Content certificate shall be submitted along with each invoice raised. However, the % of local
content may vary with each invoice while maintaining the overall % of local content for the total
work/purchase of the pro-rata local content requirement. In case, it is not satisfied cumulatively in the invoices
raised up to that stage, the supplier shall indicate how the local content requirement would be met in the
subsequent stages.

5.5 As regards cases where currency quoted by the bidder is other than Indian Rupee, exchange rate
prevailing on the date of notice inviting tender (NIT) shall be considered for the calculation of Local Content.

6 Sanctions

6.1 The Procuring companies shall impose sanction on manufacturers/service providers not fulfilling LC of
goods/services in accordance with the value mentioned in certificate of LC.
During execution, it shall be the responsibility of the supplier/contractor to ensure fulfillment of the minimum
local content specified in the bidding document failing which following actions shall be taken by the procuring
agency:

a. Pre-determined penalty @10% of total contract value for non-adherence to minimum local content.
b. Banning business with the supplier/contractor for a period of one year.

6.2 After Contract Award

6.3 In case seller/contractor desires to change the origin of sourcing of material/services, the same may be
allowed with the understanding that in case this results in non-compliance to minimum local content, the
penal action as above shall be applicable.

6.4 The financial penalty shall be over and above the PBG value prescribed in the contract and shall not be
more than an amount equal to 10% of the Contract Price.

29
 Declaration Form for availing Purchase Preference

Sr. Parameter Declaration Remarks

no.
1 We confirm that our offer is achieving the Yes / No
minimum local content target as per clause
no. 4.4 of PP-LC Policy (enclosed
elsewhere in the bidding document) and the
requisite Undertaking along with supporting
certificate (if required) is submitted in
Unpriced Bid
2 Whether bidder is an MSE bidder? Yes/ No If yes- Necessary documents to
be attached along with unpriced
part of the bid.
3 Whether bidder wants to avail purchase Yes/ No ---
preference under Public Procurement
Policy-2012? (PPP-2012)
4 Whether bidder wants to avail Purchase Yes/ No If yes-
Preference Linked with Local Content- i) In case a bidder opts for
2017? (PP-LC 2017) Purchase preference based on
PP-LC, the bidder shall not be
entitled to claim purchase
benefit available to MSE Bidders
as applicable to MSE bidder
under PPP-2012.
ii) Bidder shall comply the
requirement of PP-LC Policy

Note:
a) While evaluating the bids, for price matching opportunities and distribution of quantities among
bidders, the order of precedence shall be as under: 1. MSE bidder (PPP-2012) 2. PP-LC complied
bidder (PP-LC)

b) The bidder claiming the PP-LC benefit shall be required to furnish an undertaking on bidder’s
letterhead confirming his meeting the Local Content and this undertaking shall be certified as under:

The LC content shall be self-assessed and certified by the authorized signatory of the bidder, signing
the bid along with Statutory Auditor’s Certificate (if required) as stated in Clause 5.1 of the said Policy in
this Tender Document.

Bidder’s signature: __________________________________ (With Seal/ Stamp)

30
UNDERTAKING (to be submitted on Company’s Letterhead)

(Where the total quoted value is less than INR 10 Crore)

I__________, Son/ Daughter of ____________, do solemnly affirm and state as under:

1. That I am the ______________________<<Designation of the authorized signatory>>of
_______________and I am duly authorized to furnish this undertaking declaration on behalf
of_____________.
2. That__________ has submitted its bid no _______________ dated ________ against bidding document
no___________ dated ______ for ________ item / works for ________ ............. Project/Refinery of IOCL.
3. That the Company is fully aware of the provisions of Purchase Preference (Linked With Local Content)
2017 (PP-LC) Policy, enclosed in the above bidding document.
4. We hereby confirm that our offer is achieving the minimum local content target of 22% (Year 2018-20) as
per of PP-LC Policy.
5. I confirm that I am aware of the implication of the above undertaking and our liability on account of wrong
declaration.

(Authorized signatory of Supplier)

Note: This undertaking shall be certified by the authorized signatory of the bidder, signing the bid.

31
UNDERTAKING (to be submitted on Company’s Letterhead)

(Where the total quoted value is INR 10 Crore or above)

Certification by the bidder

I__________, Son/ Daughter of ____________, do solemnly affirm and state as under:

1. I am the ______________________<<Designation of the authorized signatory>>of _______________and
I am duly authorized to furnish this undertaking declaration on behalf of_____________.
2. That__________ has submitted its bid no _______________ dated ________ against bidding document
no___________ dated ______ for ________ item / works for ________ Project / Refinery of IOCL.
3. That the Company is fully aware of the provisions of Purchase Preference (Linked With Local Content)
2017 (PP-LC) Policy, enclosed in the above bidding document.
4. We hereby confirm that our offer is achieving the minimum local content target as per of PP-LC Policy and
the break-up of the same is provided in the Priced bid.
5. I confirm that I am aware of the implication of the above undertaking and our liability on account of wrong
declaration.

(Authorized signatory of Supplier)

Certification by the statutory auditor / Chartered Accountant of the bidder
We, _________________________________, a CA firm having our registered office address
_____________________________ and certificate number ________________ certify that we are statutory
auditor of the Company M/s ____________________________, having its registered office at
______________________________.
OR
We, _________________________________, a CA firm having our registered office address
_____________________________ and certificate number ________________ certify that statutory auditor
is not mandatory for the company M/s ____________________________, having its registered office at
______________________________ as per prevailing law and we are practicing Chartered Accountant, not
being an employee / Director and not having any interest in the company.
We have understood the provisions of Purchase Preference (Linked With Local Content) 2017 (PP-LC)
Policy, enclosed in the above bidding document.
We hereby certify that offer is achieving the minimum local content target of 22% (2018-20) as per of PP-LC
Policy.
(Statutory auditor / Chartered Accountant of the bidder)
Note: This undertaking shall be certified by:

The Proprietor and an independent Chartered Accountant, not being an employee of the firm, in case of a
proprietorship firm.
ii. Any one of the partners and an independent Chartered Accountant, not being an employee of the firm, in
case of a partnership firm.
iii. Statutory auditors in case of a company (as stated in Clause 5.1 of the said Policy in this Tender
Document.)

32
 PP-LC Policy 2021 Annexure-II

Resolution of conflict between bidders opting for PP-LC and PPP-2012preference

In case a bidder opts for purchase preference based on PP-LC, the bidder shall not be entitled to claim
purchase preference benefit available to MSE Bidders as applicable for MSE bidders under PPP-2012.
While evaluating a particular bid, bidder’s option (to avail any one out of two applicable purchase preference
policies, i.e., PP-LC-2017 or PPP-2012) will be considered, for price matching opportunities and distribution of
quantities among bidders, the precedence shall be in the following order:-
i. PPP-2012
ii. PP-LC

Scenarios
A) Scenarios -1 to 3 are applicable for all Global tenders, Domestic tenders (Rs. 1 Crore and
above) and excluding tenders for items covered in Cl 4.4 a of the policy.

Scenario – 1
L1 bidder is non MSE, non PP-LC bidder
L2 bidder is PP-LC (within 20%)
L3 bidder is MSE (within 15%) whether Class I or Class II (qualification in case of bidding against cl 4.4 a
items shall apply as usual)

(1) Non divisible item

MSE bidder shall be given preference to match the L1 price. If bidder matches the L1 price, order shall be
placed on him, otherwise, option for matching the L1 price shall be given to L2 bidder (PP-LC).

(2) Divisible item

If MSE and PP-LC bidders match the L1 price, 25% and 50% of the tendered quantity shall be ordered
respectively on the MSE and PP-LC bidders and balance 25% of the tendered quantity shall be awarded
to original L1 bidder.

Scenario - 2
L1 bidder is PP-LC
L2 bidder is MSE (within 15%) whether a Class I or Class II Bidder (qualification in case of bidding against
cl 4.4 a items shall apply as usual)

(1) Non divisible item

MSE bidder shall be given preference to match the L1 price. If bidder matches the L1 price, order shall be
placed on him, otherwise the order shall be placed on PP-LC bidder.

(2) Divisible item

If MSE matches the L1 price, 25% and 75% of the tendered quantity shall be ordered respectively on the
MSE and PP-LC bidders.

Scenario - 3
If L1 bidder is MSE, the entire order shall be awarded to him.

B) For tenders floated for items covered under clause 4.4 a of the policy
Benefit shall be given to MSE bidder (who qualifies to bid as per Cl 4.4 a of the PP-LC policy) in
accordance with the PPP-2012
33
Annexure-III

34
35
Annexure-IV

36
37
38
39
40
41
 Annexure-V

POLICY FOR PROVIDING PREFERENCE TO DOMESTICALLY MANUFACTURED

IRON & STEEL PRODUCTS IN GOVERNMENT PROCUREMENT

Background

1.1 This policy provids preference to Domestically Manufactured Iron and Steel
Products (DMI&SP) in Government procurement.

1.2 The policy is applicable to iron & steel products as provided in Appendix A,
produced in compliance to prescribed quality standards, as applicable.

1.3 The policy is applicable to every Ministry or Department of Government and all
agencies/entities under their administrative control for purchase of iron & steel

products for government projects and not with a view to commercial resale or with a
view to use in the production of goods for commercial sale.

Definition

i. Bidder may be a domestic/ foreign manufacturer of steel or their selling agents/

authorized distributors/ authorized dealers/ authorized supply houses or any other
company engaged in the bidding of projects funded by Government agencies.

ii. "Domestically Manufactured Iron & Steel Products (DMI&SP)" are those iron and
steel products which are manufactured by entities that are registered and established in
India, including in Special Economic Zones (SEZs). In addition, such products shall
meet the criteria of domestic minimum value-addition as mentioned in Appendix-A.

iii. Domestic Manufacturer is a manufacturer of domestically manufactured iron & steel

products (DMI&SP).

iv. Government for the purpose of the Policy means Government of lndia.

v. Government agencies include Government PSUs, Societies, Trusts and Statutory

bodies set up by the Government.

vi. MoS shall mean Ministry of Steel, Govt. of India.

vii. Net Selling Price shall be the Ex-works/Ex-factory price comprising of the
landed cost of imported steel at the plant and all other cost elements forming
42
 part of the conversion cost inclusive of nominal return on investment. This
price is exclusive of any duties and taxes applicable exfactory.

viii. Semi-Finished Steel shall mean billet, blooms, slabs (cast products), which
can be subsequently processed to finished steel.

ix. Finished Steel shall mean Flat and Long products, which can be subsequently
processed into manufactured items.

x. Iron & Steel Product(s) shall mean such iron and steel product (s) which are
mentioned in Appendix A.

Exclusions:

Waivers shall be granted to all such Government procurements subject to following

conditions:

a) where specific grades of steel are not manufactured in the country, or

b) where the quantities as per the demand of the project cannot be met through
domestic sources

Standing Committee:

A Standing Committee under the Ministry of Steel (MoS) to be chaired by the Secretary
(Steel), shall be constituted to oversee the implementation of the policy. The Committee
shall comprise of experts drawn from Industry / Industry Association / Government
Institution or Body / Ministry of Steel (MoS). The said Committee in MoS shall have the
mandate for the following:

a) Monitoring the implementation of the policy

b) Review and notify the list of Iron & Steel products and the Minimum value addition
criterion as mentioned at Appendix-A

c) Issue necessary clarifications for implementation of the policy including grant of

exclusions to procuring agencies as per para 3

d) Constitute a separate committee to carry out Grievance redressal

e) The Standing Committee shall submit its recommendations for approval to Ministry of
Steel.

43
Notifying Iron & Steel Products Procured by Government

5.1 The following guidelines may be used for identifying and notifying the
aforementioned products under the policy:-

a) The objective of the policy is to notify all iron & steel products which are procured by
Government Agencies for government projects and not with

a view to commercial resale or with a view to use in the production of products for
commercial sale.

b) Only iron & steel products having aggregated estimate value of INR 50 Crores and
more forming part of the steel intensive project or overall project, shall be covered under
the policy.

c) Analysis of the availability of various grades of domestic iron and steel products
needs to precede for notification under the policy. Only those iron & steel products, in
respect of which at least one domestic manufacturer exists, shall be notified.
Consultation may be carried out by the Standing Committee.

5.2 The Ministry of Steel (MoS) would notify iron & steel products along with the
minimum prescribed value addition, furnished at Appendix-A. The Appendix-A will be
reviewed by the Standing Committee and amended, if required with the approval of
competent authority.

5.3 Government agencies which are involved in procurement of iron and steel products
in government projects and if such product is not mentioned in Appendix-A, they will
provide description and technical specifications of the product alongwith prescribed
standards to the Standing Committee. The Standing Committee will act as per the
mandate at para 4.

5.4 The value addition norm shall be so calibrated that it reflects the average/ above
average manufacturing capability of the domestic industry for the iron & steel products
at a point of time. This shall be suitably reviewed as per the policy.

Tender Procedure for Procurement by Government and Government Agencies

6.1 The procuring/ Government agencies shall follow standard procurement procedures,
in accordance with instructions of Ministry of Finance and CVC while providing
preference to DMI&SP. The policy shall come into effect from the date of its notification
in all tenders where price bid have not been opened.

44
6.2 The tender document should explicitly outline the qualification criteria for adherence
to minimum prescribed domestic value addition by the bidder (as indicated at Appendix-
A), provided there is procurement of iron & steel products having estimated value of INR
50 Crores or more, forming part of the steel intensive project or overall project.

6.3 The bidders who are sole selling agents /authorized distributors /authorized dealers
/authorized supply houses of the domestic manufacturers of iron & steel products are
eligible to bid on behalf of the domestic manufacturers under the policy. However, this
shall be subject to the following conditions:

a) The bidder shall furnish the authorization certificate issued by the domestic
manufacturer for selling domestically manufactured iron & steel products.

b) The bidder shall furnish the Affidavit of self-certification issued by the domestic
manufacturer to the procuring agency declaring that the iron & steel products is
domestically manufactured in terms of the domestic value addition prescribed.

c) It shall be the responsibility of the bidder to furnish other requisite documents

required to be issued by the domestic manufacturer to the procuring agency as per the
policy.

Value addition

7.1 Value addition shall be the difference between the net selling price and the landed
cost of imported input steel (of immediate prior process) at a manufacturing plant in
India.

7.2 In case, the iron & steel products are made –

a. Using domestic input steel (semi-finished/ finished steel), invoices of purchases

from the actual domestic producers along with quantities purchased and the
other related documents must be furnished to procuring Government agency.

b. Using a mix of imported and domestic input steel, the invoices of purchases from
the actual producers along with quantities purchased and the other related
documents must be furnished separately. To derive the extent of domestic value
addition, the weighted average of both (imported & domestic) input steel shall be
considered to ensure that the minimum stipulated domestic value addition
requirement of the policy is complied with.

c. Using only imported input steel, the following formula shall apply to calculate the
percentage of domestic value-addition:

45
 Domestic value addition (%) = (Net selling price–Landed cost of imported input steel
at the plant) * 100 / (Landed cost of imported input
steel at the plant)

It is recommended that each bidder participating in the tender process should

calculate the domestic value addition using the above formulae so as to ensure the
domestic value addition claimed is consistent with the minimum stipulated domestic
value addition requirement of the policy.

Self-Certification

8.1 Each domestic manufacturer shall furnish the Affidavit of self-certification to the
procuring Government agency declaring that the iron & steel products are domestically
manufactured in terms of the domestic value addition prescribed. The bidders who are
sole selling agents / authorized distributors / authorized dealers / authorized supply
houses of the domestic manufacturers of iron & steel products are eligible to bid on
behalf of domestic manufacturers under the policy. The bidder shall furnish the Affidavit
of self-certification issued by the domestic manufacturer to the procuring agency
declaring that the iron & steel products are domestically manufactured in terms of the
domestic value addition prescribed. The Affidavit of self-certification shall be furnished
in Form 1 attached to these guidelines.

8.2 It shall be the responsibility of the domestic manufacturer to ensure that the products
so claimed are DMI&SP in terms of the domestic value addition prescribed for the
product. The bidder shall also be required to provide a value addition certificate on half-
yearly basis (Sep 30 and Mar 31), duly certified by the Statutory Auditors of the
domestic manufacturer, that the claims of valueaddition made for the product during the
preceding 6 months are in accordance with the Policy. Such certificate shall be filed
within 60 days of commencement of each half year, to the concerned Government
agencies and shall continue to be filed till the completion of supply of the said products.

8.3The procuring agency shall accept the Affidavit of self-certification regarding

domestic value addition in a steel product submitted by a bidder. It shall not normally be
the responsibility of procuring agency to verify the correctness of the claim. The onus of
demonstrating the correctness of the same shall be on the bidder when asked to do so.

8.4 In case a complaint is received by the procuring agency or the concerned

Government Agency against the claim of a bidder regarding domestic value addition in
iron & steel products, the procuring agency shall have full rights to inspect and examine
all the related documents and take a decision. In case any clarification is needed,
matter may be referred to MoS with a request for technical assistance.

8.5 Any complaint referred to the Government Agency shall be disposed off within 4
weeks of the reference along with submission of all necessary documents. The bidder
shall be required to furnish the necessary documentation in support of the domestic

46
value addition claimed in iron & steel products to the Government Agency within 2
weeks of filing the complaint.

8.6 In case, the matter is referred to the Ministry of Steel, the grievance redressal
committee setup under the MoS shall dispose off the complaint within 4 weeks of its
reference and receipt of all documents from the bidder after taking in consideration, the
view of the Government Agency. The bidder shall be required to furnish the necessary
documentation in support of the domestic value addition claimed in iron & steel products
to the grievance redressal committee under MoS within 2 weeks of the reference of the
matter. If no information is furnished by the bidder, the grievance redressal committee
may take further necessary action, in consultation with Government Agency to establish
the bonafides of the claim.

8.7The cost of assessing the prescribed extent of domestic value addition shall be
borne by the procuring agency if the domestic value addition is found to be correct as
per the certificate. However, if it is found that the domestic value addition as claimed is
incorrect, the cost of assessment will be payable by the bidder who has furnished an
incorrect certificate. The manner of enforcing the same shall be defined in the tender
document.

8.8Each Government Agency shall clearly define the penalties, in case of

misdeclaration by the bidder of the prescribed domestic value addition, in the tender
document. The penalties may include forfeiting of the EMD and such other penalties, as
may be prescribed by the concerned Government Agency in the tender document.

8.9 In case of reference of any complaint to MoS by the concerned bidder, there would
be a complaint fee of Rs. 10 Lakh or 0.2 % of the value of the DMI&SP being procured
(subject to a maximum of Rs. 20 Lakh), whichever is higher, to be paid by Demand
Draft deposited with the grievance redressal committee under MoS along with the
complaint by the complainant. In case, the complaint is found to be incorrect, the
Government Agency reserves the right to forfeit the said amount. In case, the complaint
is found to be substantially correct, deposited fee of the complainant would be refunded
without any interest.

Monitoring

9.1MoS shall be the nodal ministry to monitor the implementation of the policy.

9.2Every Government Agency shall ensure implementation of the policy and shall
annually, in the month of June, send a declaration indicating the extent of compliance to
the policy and reasons for noncompliance thereof, during the preceding financial year.

47
Reference to Ministry of Steel

In case of a question whether an item being procured is a DMI&SP to be covered under

the policy, the matter would be referred to the Ministry of Steel for clarification.

New Delhi, Dated: …………….

Copy to:

1. All Ministries/ Departments of Government of India

2. Cabinet Secretariat

3. PMO

4. NITI Aayog

5. Comptroller and Auditor General of India

6. Secretary/ ASFA, Ministry of Steel

7. Internal Distribution

48
 Appendix-A
List of Iron & Steel Products
(Refer Para 7.2)

Sl. Iron & Steel Products Inputs Minimum

No (Imported or Value
Domestic) Addition
1 Ductile Iron Pipe Pig Iron / Liquid Iron 15%

2 Wire rod & TMT bar Billet 15%

3 Structural / sections Bloom 15%
4 HR Coils, strips, sheets & plates Slab 15%

5 HR universal/Quarto Plates Slab 15%

6 CR coils / strips HR coils 15%

7 Coated flat steel products/ Slab/ HR Coil/ Cold 15%

GP/GC sheets/ Al-Zn coated rolled coils/strips
8 Color coated, painted sheets Slab/ HR Coil/ Cold 15%
rolled coils/strips
9 All kinds of steel pipes & tubes Slabs/ Plates/ HR 15%
coils
10 Seamless tubes & pipes Bloom 15%

11 Rails Bloom 15%

49
 Form-1

Format for Affidavit of Self Certification regarding Domestic Value Addition in

Iron & Steel Products to be provided on Rs.100/- Stamp Paper

Date:

I ________S/o, D/o, W/o, _____________________Resident

of_________________________________________________________ hereby
solemnly affirm and declare as under:

That I will agree to abide by the terms and conditions of the policy of Government of
India issued vide Notification No: ______________________________________.

That the information furnished hereinafter is correct to the best of my knowledge and
belief and I undertake to produce relevant records before the procuring agency (ies) for
the purpose of assessing the domestic value addition.

That the domestic value addition for all inputs which constitute the said iron & steel
products has been verified by me and I am responsible for the correctness of the claims
made therein.

That in the event of the domestic value addition of the product mentioned herein is
found to be incorrect and not meeting the prescribed value-addition criteria, based on
the assessment of procuring agency (ies) for the purpose of assessing the domestic
value-addition, I will be disqualified from any Government tender for a period of 36
months. In addition, I will bear all costs of such an assessment.

That I have complied with all conditions referred to in the Notification No.___________
wherein preference to domestically manufactured iron & steel products in Government
procurement is provided and that the procuring agency (ies) is hereby authorized to
forfeit and my EMD. I also undertake to pay the assessment cost and pay all penalties
as specified in the tender document.

I agree to maintain the following information in the Company's record for a period of 8
years and shall make this available for verification to any statutory authority.

i. Name and details of the Bidder

50
 (Registered Office, Manufacturing unit location, nature of legal entity)
ii. Date on which this certificate is issued

iii. Iron & Steel Products for which the certificate is produced

iv. Procuring agency to whom the certificate is furnished

v. Percentage of domestic value addition claimed and whether it meets the

threshold value of domestic value addition prescribed

vi. Name and contact details of the unit of the manufacturer (s)

vii. Net Selling Price of the iron & steel products

viii. Freight, insurance and handling till plant

ix. List and total cost value of input steel (imported) used to manufacture the iron &
steel products

x. List and total cost of input steel which are domestically sourced.

xi. Please attach value addition certificates from suppliers, if the input is not
inhouse.

xii. For imported input steel, landed cost at Indian port with break-up of CIF value,
duties & taxes, port handling charges and inland freight cost.

For and on behalf of _____________________________(Name of firm / entity)

Authorized signatory (To be duly authorized by the Board of Directors)

<Insert Name, Designation and Contact No.>

51
 Annexure-VI
Relaxation for Start up

Definition of Start up & Documents requirement

Startups shall be defined as per Ministry of Commerce and Industry (Department of Industrial Policy
and Promotion, DIPP) latest notification:

An Entity (Private Limited Company or Registered Partnership Firm or Limited Liability Partnership)
shall be considered as a Startup:

a) Up to Seven years from the date of its incorporation / Registration.

b) If its Turnover for any of the financial years has not exceeded Rupees 25 Crore and
c) It is working towards innovation, development, deployment or commercialization of new
products, processes or services driven by technology or intellectual property.

Provided that any such entity formed by splitting up or reconstruction of a business already in
existence shall not be considered a Startup.

In order to avail Startup benefits, bidder shall be recognized as a Startup as on the Original Bid
Opening Date.

To ascertain the above, bidders claiming Startup benefits shall be required to furnish the following
documents along with their offer:

1. Certificate of Recognition issued by the Department of Industrial Policy and Promotion, Ministry
of Commerce and Industry, Government of India.
2. Certificate of incorporation.
3. Audited Balance sheet (P&L statement) of all the Financial Years since incorporation.

Relaxation of Norms for Startups:

a) Recognised Startups (as per Startup India Action Plan of Govt of India) are exempted from prior
turnover and experience criteria given under PQC above subject to submission of valid Certificate of
recognition as Startup from Deptt., of Industrial Policy & Promotion, Ministry of Commerce &
Industry, Govt of India. However, the Startup bidder shall be required to submit an undertaking
along with the bid stating that they will comply with all quality requirements and technical
specifications of the tender during execution.

b) If specified in the tender, No turnover and prior experience criteria with respect to start up shall
be considered subject to meeting the quality and technical specification of the tendered items.

The definition of startup shall be as per latest Gazette Notification of Govt. of India on the
subject.

55