ERNAKULAM REGIONAL CO-OPERATIVE MILK PRODUCERS UNION LTD. P.B.NO.2212, EDAPPALLY, KOCHI PHONE: NO.EU/PC/743/NPDD/EKM/2015

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1 ERNAKULAM REGIONAL CO-OPERATIVE MILK PRODUCERS UNION LTD. P.B.NO.2212, EDAPPALLY, KOCHI PHONE: NO.EU/PC/743/NPDD/EKM/2015 TENDER FOR THE SUPPLY, INSTALLATION & COMMISSIONING OF 500 KVA DIESEL GENERATOR FOR PRODUCTS DAIRY AT EDAPPALLY KOCHI Page 1 of 43

2 BID FORM 1. Registered Name of Bidder 2. Address Office Address 3. Telephone Land Phone Mobile Fax Page 2 of 43

3 TABLE OF CONTENTS Vol 1. SECTION DESCRIPTION PAGE NO E TENDER NOTICE 4 GENERAL TENDER TERMS & CONDITIONS FOR E-PROCUREMENT 5-8 1I SECTION - I INSTRUCTIONS TO BIDDERS SECTION - II GENERAL CONDITIONS OF CONTRACT SECTION III SPECIAL CONDITIONS OF CONTRACT SECTION IV TECHNICAL SPECIFICATIONS SECTION - V QUALIFICATION APPLICATION FORMAT 35 SECTION VI MANUFACTURERS AUTHORISATION FORM 36 SECTION VII CONTRACT FORM SECTION VIII ACCEPTABLE FORMS OF BANK GUARANTEE Page 3 of 43

4 ERNAKULAM REGIONAL CO-OPERATIVE MILKPRODUCERS UNION LTD. P.B. NO. 2212, EDAPPALLY, KOCHI 24 Phone , NO.EU/PC/743/NPDD/EKM/2015 Date: E - TENDER NOTICE 1. Ernakulam Regional Co-operative Milk Producers Union Ltd. Under NPDD Scheme, centrally sponsored by Ministry of Agriculture, Department of Animal Husbandry & Dairying & Fisheries, GOI invites Technical cum Commercial Tenders from the reputed Manufacturers, Accredited Distributors & Dealers for supply, installation & commissioning of 500 KVA DG Set at Products Dairy, Edappally. A ITEM DESCRIPTION Appox Qty. EMD (Rs) 1. Supply, installation & commissioning of DG 1 No 35, Set (500 KVA) 2. Interested eligible Bidders may obtain further information from the office of the Ernakulam Regional Cooperative Milk Producers Union Ltd, Edappally. 3. The bid shall be submitted in two-cover system consisting of technical bid and price bid. The price bid of those who qualify in the technical bid only will be opened. 4. Detailed terms and conditions, scope of work etc as indicated in the invitation to bid are contained in the bidding document of the above work. 1. Bid Reference : NO.EU/PC/743/NPDD/EKM/ Tender Download : Can be downloaded from the website 3. Price of Tender Documents : Rs 1000/- as online remittance 4. EMD : As specified, as on online remittance 5. Document download start date : at 5:00 PM 6. Pre Bid Meeting : :00 Hours at Products Dairy, Edappally 7. Bid submission start date : Bid submission closing date : at 11:00 AM 9. Date / Time of opening Technical : at 11:30 Hours Tender 10. Time of Completion : 90 days 11. Address of communication and place of bid opening : ERCMPU Ltd, Edappally Cochin Bid Validity : 60 days from All bids must be accompanied by Bid security (EMD) and tender fee as specified in the e-tender notice. Tender documents can also be seen in our web site Page 4 of 43 MANAGING DIRECTOR ERCMPU Ltd

5 General Tender Terms & Conditions for e-procurement This tender is an e-tender and is being published online for supply, installation & commissioning of DG Set (500 KVA) at Products dairy, Edappally. The tender is invited in two cover system from the registered and eligible firms through e- procurement portal of Government of Kerala ( Prospective bidders willing to participate in this tender shall necessarily register themselves with above mentioned e-procurement portal. The tender timeline is available in the critical date section of this tender published in A). Online Bidder registration process: Bidders should have a Class II or above Digital Signature Certificate (DSC) to be procured from any Registration Authorities (RA) under the Certifying Agency of India. Details of RAs will be available on Once, the DSC is obtained, bidders have to register on website for participating in this tender. Website registration is a one-time process without any registration fees. However, bidders have to procure DSC at their own cost. Bidders may contact e-procurement support desk of Kerala State IT Mission over telephone at , , or , through etendershelp@kerala.gov.in for assistance in this regard. B). Online Tender Process: The tender process shall consist of the following stages: i. Downloading of tender document: Tender document will be available for free download on However, tender document fees shall be payable at the time of bid submission as stipulated in this tender document. ii. Pre-bid meeting: , AM at Products Dairy, Edappally. iii. Publishing of Corrigendum: All corrigenda shall be published on and shall not be available elsewhere. iv. Bid submission: Bidders have to submit their bids along with supporting documents to support their eligibility, as required in this tender document (Clause No.3, Instruction to Bidders) of No manual submission of bid is allowed and manual bids shall not be accepted under any circumstances. v. Opening of Technical Bid and Bidder short-listing: The technical bids will be opened, evaluated and shortlisted as per the eligibility and technical qualifications. All documents in support of technical qualifications shall be submitted (online). Failure to submit the documents online will attract disqualification. Bids shortlisted by this process will be taken up for opening the financial bid. Page 5 of 43

6 vi. Opening of Financial Bids: Bids of the qualified bidder s shall only be considered for opening and evaluation of the financial bid on the date and time mentioned in critical date s section. C). Documents Comprising Bid: (i). The First Stage (Pre-Qualification or Technical Cover based on 1 cover or 2 cover tender system): Pre-Qualification or Technical proposal shall contain the scanned copies of the following documents which every bidder has to upload: For the purpose of this particular contract, bidder should meet the following qualifying criteria as minimum: a. The bidder should be in business as manufacturer, for a minimum period of five years at the time of bid opening in the same name and style. b. The bidder should have completed a minimum of three similar work of value of the estimated value of the Contract, for which this Invitation to Bid is issued, during the last five years. c. The bidder's annual financial turnover in the same name and style in each year of the last three years shall not be less than the probable amount of contract as specified in the Invitation to Bid. d. The bidder shall furnish a copy of the Income tax Returns for the previous year in original or certified true copies. The department doesn t take any responsibility for any technical snag or failure that has taken place during document upload. (ii). The Second Stage (Financial Cover or as per tender cover system): The Bidder shall complete the Price bid as per format given for download along with this tender. Note: The blank price bid should be downloaded and saved on bidder s computer without changing file-name otherwise price bid will not get uploaded. The bidder should fill in the details in the same file and upload the same back to the website. Fixed price: Prices quoted by the Bidder shall be fixed during the bidder's performance of the contract and not subject to variation on any account. A bid submitted with an adjustable/ variable price quotation will be treated as non - responsive and rejected. Page 6 of 43

7 D). Tender Document Fees and Earnest Money Deposit (EMD) The Bidder shall pay, a tender document fees of Rs.1,000/- and Earnest Money Deposit or Bid Security of Rs.35,000/-. The Bid security is required to protect the purchaser against risk of Bidder s conduct, which would warrant the forfeiture of security. Online Payment modes: The tender document fees and EMD can be paid in the following manner through e-payment facility provided by the e-procurement system: i. State Bank of Travancore (SBT) Internet Banking: If a bidder has a SBT internet banking account, then, during the online bid submission process, bidder shall select SBT option and then select Internet banking option. The e-procurement system will re-direct the bidder to SBT s internet banking page where he can enter his internet banking credentials and transfer the tender document and EMD amount. ii. National Electronic Fund Transfer (NEFT)If a bidder holds bank account in a different bank, then, during the online bid submission process, bidder shall select NEFT option. An online remittance form would be generated, which the bidder can use for transferring amount through NEFT either by using internet banking of his bank or visiting nearest branch of his bank. After obtaining the successful transaction receipt no., the bidder has to update the same in e-procurement system for completing the process of bid submission. Bidder should only use the details given in the Remittance form for making a NEFT payment otherwise payment would result in failure in e- Procurement system. As NEFT payment status confirmation is not received by e-procurement system on a real-time basis, bidders are advised to exercise NEFT mode of payment option at least 48 hours prior to the last date and time of bid submission to avoid any payment issues. NEFT payment should done according to following guidelines: i. Single transaction for remitting Tender document fee and EMD: Bidder should ensure that tender document fees and EMD are remitted as one single transaction. ii. Account number as per Remittance Form only: Account no. entered during NEFT remittance at any bank counter or during adding beneficiary account in Internet banking site should be the same as it appears in the remittance form generated for that particular bid by the e-procurement system. Bidder should ensure that tender document fees and EMD are remitted only to the account number given in the Remittance form provided by e-procurement system for that particular tender. Bidders must ensure that the banker inputs the Account Number (which is case sensitive) as displayed in the Remittance form. No additional information like bidder name, company name, etc. should be entered in the account no. column along with account no. for NEFT remittance. Page 7 of 43

8 iii. Only NEFT Remittance Allowed: RTGS payments, Account to Account transfers, State Bank Group Transfers (GRPT) or Cash payments are not allowed and are treated as invalid mode of payments. Bidder must ensure that the banker does NEFT transaction only irrespective of the amount and specially instruct the banks not to convert the payment type to RTGS or GRPT. iv. Amount as per Remittance form: Bidder should ensure that the amount being remitted is neither less nor higher than the amount shown in remittance form. v. UTR Number: Bidders should ensure that the remittance confirmation (UTR number) received after NEFT transfer should be updated as it is, in the e-procurement system for tracking the payment. vi. One Remittance Form per Bidder and per Bid: The remittance form provided by e-procurement system shall be valid for that particular bidder and bid and should not be re-used for any other tender or bid or by any other bidder. Any transaction charges levied while using any of the above modes of online payment has be borne by the bidder. The supplier/contractor's bid will be evaluated only if payment status against bidder is showing Success during bid opening. E). SUBMISSION PROCESS: For submission of bids, all interested bidders have to register online as explained above in this document. After registration, bidders shall submit their Technical bid and Financial bid online on along with online payment of tender document fees and EMD. For page-by-page instructions on bid submission process, please visit and click Bidders Manual Kit link on the home page. It is necessary to click on Freeze bid link/ icon to complete the process of bid submission otherwise the bid will not get submitted online and the same shall not be available for viewing/ opening during bid opening process. Page 8 of 43

9 SECTION I. INSTRUCTION TO BIDDERS CLAUSE SUBJECT PAGE No. A. Introduction 1. Source of Funds Eligible Bidders Cost of Bidding 10 B. Bidding Documents 4. Content of Bidding Documents Instructions Clarification of Bidding Documents Amendment of Bidding Documents 11 C. Preparation of Bids 8. Language of Bid Documents Comprising the Bid Bid Form Bid Prices Bid currency & payments Documents Establishing Bidder's Eligibility and qualifications Documents Establishing Goods Eligibility and Conformity to Bid document Bid Security Period of validity of bids Variation in bidding conditions Pre bid meeting 14 D. Submission of Bids 19. Bid submission 14 E. Bid Opening and Evaluation 20. Opening of Bids Conversion to Single Currency 15 F. Award of Contract 22. Post qualification Award criteria ERCMPU's right to accept any bid and to Reject any or all bids Notification of award Signing of contract Performance security Clarification of Bids (Pre Bid Meeting) 16 Page 9 of 43

10 SECTION I. INSTRUCTION TO BIDDERS A. Introduction 1.0 The project is financed under NPDD Scheme 1.1 Description Supply, installation & commissioning of DG Set (500 KVA) under NPDD Scheme 1.2 Owner Managing Director, ERCMPU Ltd 2.0. Eligible Bidders 2.1 This invitation for Bids is open to all eligible bidders as per the eligibility criteria of this bidding document. 3.0 Cost of Bidding 3.1 The Bidder shall bear all costs associated with the preparation and submission of his bid, and the Ernakulam Regional Co-operative Milk Producers Union ltd., hereinafter referred to as "ERCMPU", will in no case be responsible or liable for those costs, regardless of the conduct or outcome of the bidding process. B. The Bidding Documents 4.0 Content of Bidding Document includes the number of copies as stated below Number of Volume Section Description copies Copies I I 0 E tender Notice I Instruction to Bidders II General Conditions of Contract III Special Conditions of Contract Part I IV Special Conditions of Contract Part II V Technical Specifications VI Qualification application format VI I Manufacturers authorization form VIII Technical deviation statement form IX Form of Agreement X Acceptable Forms of Bank Guarantee II XI Schedule of Quantities 5.0 The Bidder is expected to examine all instructions, forms, terms and specifications in the Bidding Documents, etc. Failure to furnish all information required by the Bidding Documents or submission of a bid not substantially responsive to the Bidding Documents in every respect will be at the Bidder's risk. Page 10 of 43

11 6.0 Clarification of Bidding Documents A prospective Bidder requiring any clarification of the Bidding Documents may notify to ERCMPU in writing or by mail, fax, or at the mailing address indicated in the Invitation for Bids. ERCMPU will respond in to any request for clarification of the Bidding Documents, which it receives not later than 10 days prior to the deadline for the submission of bids prescribed by the ERCMPU. 7.0 Amendment of Bidding Documents 7.1 At any time prior to the deadline for submission of bids, the ERCMPU may, for any reason, whether at its own initiative or in response to a clarification requested by a prospective Bidder, modify the Bidding Documents by amendment. 7.2 The amendment if any will be informed through corrigendum published. 7.3 In order to afford prospective Bidders reasonable time in which to take the amendment into account in preparing their bids, the ERCMPU may, at its discretion, extend the deadline for the submission of bids. 7.4 There shall not be any individual communication in respect of general notices, amendments, etc. The prospective offers are advised to check for updates in our website and on a day to day basis. The prospective tenderers are advised to browse the website of ERCMPU on a day-today basis and to go through the corrigendum in till the tender is concluded. C. Preparation of Bids 8.0 Language of Bid The Bid prepared by the Bidder and all correspondence and documents relating to the bid exchanged by the Bidder and the ERCMPU, shall be written in the English language. Supporting documents and the printed literature furnished by the Bidder may be written in another language provided they are accompanied by an English translation of pertinent passages in the above stated language. For the purpose of interpretation of the bid, the English translation shall prevail. 9.0 Documents comprising the Bid The bid prepared by the Bidder shall comprise the following components: a. Bid security (Earnest Money Deposit) b. Schedule of quantities c. Documentary evidence established in accordance with clause 13 that the Bidder is eligible to bid and is qualified to perform the contract if bid is accepted. d. Documentary evidence established in accordance with Clause 14 that the goods and ancillary services to be supplied by the Bidder are eligible goods and services and conform to the Bidding Documents 10.0 Bid Form The Bidder shall complete the BOQ document exhibited in the e tender Page 11 of 43

12 11.0 Bid Prices 11.1 All duties, taxes and other levies, entry tax etc., for supply shall be payable by the bidder under the contract shall be shown separately in the rate and the prices and total bid price submitted by the bidder and evaluation and the comparison of bids by the ERCMPU shall be made accordingly Fixed price The rates and prices quoted by the bidder shall be fixed for the duration of the contract period and shall not be subjected to adjustment on any account Bid Currency & payments For all goods and services covered in this Bidding Document, prices & payments shall be in Indian Rupees only Documents Establishing Bidders' Eligibility and qualifications Pursuant to clause 9, the Bidder shall furnish, as part of its bid, documents establishing the Bidder's eligibility to bid and its qualification to perform the Contract if its bid is accepted. For the purpose of this bidder shall meet the following qualification criteria as a minimum: a. The bidder should be in business as manufacturer, for a minimum period of five years at the time of bid opening in the same name and style. Dealers who quote for the tender should submit manufactures authorization form. b. The bidder should have completed a minimum of three similar work of value of the estimated value of the Contract, for which this Invitation to Bid is issued, during the last five years. c. The bidder's annual financial turnover in the same name and style in each year of the last three years shall not be less than the probable amount of contract as specified in the Invitation to Bid. d. The bidder shall furnish a copy of the Income tax Returns for the previous year in original or certified true copies The documentary evidence of the Bidder's eligibility to bid shall be established to the ERCMPU's satisfaction 13.3 The documentary evidence of the Bidder's qualifications to perform the Contract if its bid is accepted shall be established to the ERCMPU's satisfaction. Page 12 of That, the Bidder has the financial and business capability necessary to perform the Contract. To this end, all bids submitted shall include the following information along with formats under Section V. a. Copies of original documents defining the constitution or legal status, place of registration and principal place of business of the company or firm or partnership etc.

13 b. Details of experience and past performance of the bidder on works of similar nature and capacity within the past 5 years and details of current contracts in hand and other commitments; (Name of work turn-key jobs, capacity of the plant executed, Contract reference, Name and detailed postal address of client, value of work, time of completion, date of completion etc. are to be furnished). c. Reports on financial standing of the Bidder such as profit and loss statements, balance sheets and auditor's report of the past three years, bankers solvency certificates etc; d. Income tax clearance certificate and sales tax clearance certificate for the previous three years, in original/certified true copies. e. Copy of license/certificate issued by competent authorities. f. Information regarding any current litigation in which the bidder is involved Documents Establishing Goods' Eligibility and Conformity to Bidding Documents Pursuant to Clause 9, the Bidder shall furnish, as part of its bid, documents establishing the eligibility and conformity to the Bidding Documents of all goods and services, which the Bidder proposes to supply under the Contract The documentary evidence of the goods and services conformity to the Bidding Documents may be in the form of literature, drawing and data, and shall furnish a detailed description of the goods essential technical and performance characteristics Pursuant to Clause 14.2 above, the Bidder shall note that standards for workmanship, material and equipment, and references to brand names or catalogue numbers designated by the ERCMPU in its Technical Specifications are intended to be descriptive only and not restrictive. Bidder should quote for the item as per the technical specification given by the ERCMPU Bid Security (Earnest Money Deposit) 15.1 The Bidder shall furnish, as part of its bid, bid security for the amount as specified in the E tender notice through ONLINE NEFT TRANSACTION 15.2 Any bid not accompanied by an acceptable bid security pursuant to Clause No 15.1 hereof shall be automatically rejected The bid Securities of the unsuccessful bidders shall be refunded as promptly as possible, but not later than 30 days after the expiry of the period of bid validity as prescribed in these documents through ONLINE NEFT TRANSACTION The bid Securities of the successful bidder(s) shall be refunded when the bidder has signed the agreement and furnish the required performance security No interest shall be paid by ERCMPU on the bid security furnished by the bidder The bid security may be forfeited: a. If a Bidder withdraws its bid during the period of bid validity. b. In the case of successful Bidder, if the Bidder fails within the time limit: Page 13 of 43

14 I. To sign the agreement II. To furnish performance security 16.0 Period of validity of Bids 16.1 Bids shall remain valid for 60 days after the date of bid opening prescribed by the ERCMPU. A bid valid for a shorter period may be rejected by the ERCMPU as non-responsive In exceptional circumstance, prior to the expiry of the original bid validity period, ERCMPU may request the Bidders for a specific extension in the period of validity. The request and the response thereto shall be made in writing (or by cable or mail). A Bidder may refuse the request without forfeiting its bid security. The bidder agreeing to the request all not be permitted to modify his bid, but shall be required to extend the validity of his bid security correspondingly. The provision of clause 15 shall continue to apply during the extended period of bid validity Variation in Bidding conditions The bidder shall submit offer, which comply fully with the requirements of the bidding documents, including the basic technical design as indicated in the drawings and specifications. Conditional bids are considered as nonresponsive Pre Bid Meeting 18.1 The bidder or his authorized representative is advised to attend a pre-bid meeting which will be convened at the office of the ERCMPU on a date and time as stated in the INVITATION TO BID (E-TENDER NOTICE) The purpose of the meeting will be to clarify issues and to answer questions on any matter that may be raised at that stage The bidder is requested to submit any question in writing or by to reach the ERCMPU not later than one week before the meeting Minutes of the meeting of the pre-bid will be published in the website. D 19.0 Submission of bids a. The bid shall be in two parts viz. technical and commercial (price). The technical bid shall be in accordance with the clause No.13 and No.14 and details finalized in pre-bid minutes & corrigendum. a. The price bids of those who qualified in the pre-qualification criteria indicated in clause No.13 and No.14 & Clause No 8 of general conditions will only be opened. E BID OPENING AND EVALUATION 20.0 Bid opening 20.1 Bids will be opened at the time and date specified in the NIT. Page 14 of 43

15 21.0 Conversion to Single Currency 21.1 All bid prices shall be submitted in Indian currency only. F. AWARD OF CONTRACT 22.0 Post-qualification 22.1 ERCMPU will determine to its satisfaction whether the Bidder selected as having submitted the lowest evaluated responsive bid is qualified to satisfactorily perform the Contract The determination will take into account the Bidder's financial, technical capabilities. It will be based upon an examination of the documentary evidence of the Bidder's qualifications submitted by the Bidder, pursuant to Para 13, as well as such other information as the ERCMPU deems necessary and appropriate including details of experience and records of past performance An affirmative determination will be a prerequisite for award of the contract to the Bidder. A negative determination will result in rejection of the Bidder's bid, in which event; ERCMPU will proceed to the next lowest evaluated bid to make a similar determination of that Bidder's capabilities to perform satisfactorily Award Criteria 23.1 Subject to clause 24, the ERCMPU shall award the Contract to the bidder whose bid has been determined to be substantially responsive to the bidding documents and who has offered the lowest. While finalizing the contract the rate as well as the merits of the equipment will be considered 23.2 ERCMPU's right to vary quantities at time of award ERCMPU reserves the right at the time of award of contract to increase or decrease the quantity of goods and services specified in the schedule of requirement without any change in unit price or other terms and conditions ERCMP's Right to Accept any bid and to reject any or all bids 24.1 Notwithstanding clause 23 or any other clauses stated above, the ERCMPU reserves the right to accept or reject any bid and to annul the bidding process and reject all bids, at any time prior to the award of the Contract, without thereby incurring any liability to the affected bidder(s) or any obligation to inform the affected bidder(s) of the grounds for the ERCMPU 's action Notification of Award 25.1 Prior to the expiry of the period of bid validity prescribed in the bid documents, the ERCMPU will notify the successful bidder by fax/ e - mail that his bid has been accepted. This letter (hereinafter and in the Conditions of Contract referred to as "Letter of Acceptance") shall name the sum which the ERCMPU will pay to the Contractor in consideration of the execution, completion and the maintenance of the works by the Contractor as prescribed by the Contract (hereinafter and in the Conditions of the Contract referred to as the "Contract price") The notification of the award will constitute the formation of the Contract. Page 15 of 43

16 25.3 Upon the furnishing by the successful bidder of a performance security in accordance with the clause 27 the ERCMPU will notify the unsuccessful bidders that their bids have been unsuccessful Signing of Agreement The successful bidder has to execute and agreement within 15 days of receipt of the order Performance Security 27.1 Within 20days of the receipt of the work order the successful bidder shall furnish a performance security 10% of the contract value. The performance security in the form of Demand Draft or Bank Guarantee in favour of Ernakulam Regional Co-operative Milk Producers Union Limited. The Bank guarantee shall be valid for the entire period of contract including guarantee period plus 90 days 27.2 Failure of the successful Bidder to comply with the requirement of Clause 25 or Clause 26 shall constitute sufficient grounds for the annulment of the award and forfeiture of the bid security, in which event the ERCMPU may make the award to the next lowest evaluated bidder or call for new bids Clarification of Bids (Pre Bid Meeting) To assist in the examination, evaluation and comparison of bids the ERCMPU may, at its discretion, ask the Bidders for a clarification of its bid. The request for clarification and the response shall be in writing and no change in the price or substance of the bid shall be sought, offered or permitted. Page 16 of 43

17 SECTION II. GENERAL CONDITIONS OF CONTRACT TABLE OF CLAUSES Clause Topic Page Clause Topic Page No. No. 1. Definitions Assignment Application Subcontracts Country of Origin Delays in Contractor's Performance Standards Liquidated Damages Use of Contract Documents Termination for default Patent Rights Force Majeure Performance Security Termination for insolvency Inspections and Tests Termination for convenience Packing & Marking Resolution of disputes Delivery and Documents Governing Languages Insurance Applicable law Transportation Notices Incidental Services Taxes and duties Warranty/Guarantee Right to use defective Equipment Payment Prices 23 Page 17 of 43

18 SECTION II - GENERAL CONDITIONS OF CONTRACT 1.0 Definitions 1.1 In this contract, the following terms shall be incorporated as indicted a. "The Contract" means the agreement entered into between the ERCMPU and the Successful bidder, as recorded in the Contract Form signed by the parties, including all attachments and appendices thereto and all documents incorporated by reference therein: b. "The Contract Price" means the price payable to the Contractor under the Contract for the full and proper performance of its contractual obligations; c. "The Goods" means all of the equipment, machinery, and/or other materials, which the Contractor is required to supply to the ERCMPU under the Contract d. "Services" means services ancillary to the supply of the Goods, such as transportation and insurance, and any other incidental services, such as installation, commissioning, provisions of technical assistance, training and other such obligations of the Contractor covered under the Contract; e. "The ERCMPU" Shall mean The Ernakulam Regional Co-operative Milk Producers Union Ltd f. "The Contractor" means the successful bidder whose bid has been accepted by the ERCMPU and on whom a work order has been placed and shall include his heirs, legal representatives and assignees. h. Engineer-in-charge means the Engineer or any other authorized representatives of the ERCMPU who is empowered to take decision on behalf of ERCMPU for the purpose of the Contract. 2.0 Application These General Conditions shall apply to the extent that provisions in other parts of the Contract do not supersede them. 3.0 Standards 3.1 The Goods supplied under this Contract shall conform to the standards mentioned in the Technical specifications, and, when no applicable standard is mentioned, to the Indian Standards. 4.0 Country of Origin Indian. The bidder (authorized representative or dealer) in India can quote for the equipment manufactured in any foreign country. 5.0 Use of Contract Documents and Information 5.1 The Contractor shall not, without the ERCMPU's prior written consent, disclose the Contract, or any provision thereof, or any specification, plan, drawing, pattern, sample or information furnished by or on behalf of the ERCMPU in connection therewith, to any person other than a person employed by the Contractor in the performance of the Contract. Disclosure to any such employed person shall be made in confidence and shall extend only so far as may be necessary for purposes of such performance. Page 18 of 43

19 5.2 The Contractor shall not, without the ERCMPU's prior written consent, make use of any document or information enumerated in para.5.1 except for purposes of performing the Contract. 5.3 Any document, other than the Contract itself, enumerated in the para.5.1 shall remain the property of the ERCMPU and shall be returned (in all copes) to the ERCMPU on completion of the Contractor's performance under the Contract if so required by the ERCMPU. 6.0 Patent Rights 6.1 The Contractor shall indemnify the ERCMPU against all third-party claims of infringement of patent, trademark or industrial design rights arising from use of the goods or any part thereof in India. 7.0 Performance Security 7.1 Within 20 days after the Contractor's receipt of notification of award of the Contract, the Contractor shall furnish performance security to the ERCMPU in the amount specified in the Special Conditions of Contract. 7.2 The proceeds of the performance security shall be payable to the ERCMPU as compensation for any loss resulting from Contractor's failure to complete its obligations under the Contract. 7.3 The performance security shall be denominated in Indian Rupees and shall be in the following form: i. A Bank guarantee issued by a Nationalized Indian Bank. ii. Demand draft in favour of Ernakulam Regional Co-operative Milk Producers Union Ltd payable at Ernakulam iii. The bank guarantee shall be valid till the expiry of the warranty period. 7.4 The performance security will be discharged by the ERCMPU and returned to the contractor not later than 30 days following the date of completion of the Contractor's performance obligations, including any warranty obligations, under the Contract. 7.5 In the event of increase in the Contract value, in actual execution, proportionate additional performance security shall be paid by the Contractor if called upon to do so. 7.6 In the event of decrease in the Contract value the performance security shall be proportionately adjusted on the completion of the work. 7.7 No interest shall be paid by the ERCMPU for the amount deposited as Performance security with the ERCMPU. 8.0 Inspection and Tests 8.1 The ERCMPU or its representatives shall have the right to inspect and/or test the Goods to confirm their conformity to the Contract. The Special Conditions of Contract and/or the Technical Specifications shall specify what inspections and tests the ERCMPU requires and where they are to be conducted. The ERCMPU shall notify the Contractor in writing of the identity of any representatives, if retained for these purposes. 8.2 The Inspections and tests may be conducted on the premises of the contractor or its subcontractor(s), at point of delivery and/or at the Good's final destination. Page 19 of 43

20 Where conducted on the premises of the Contractor or its sub-contractor(s), all reasonable facilities and assistance-including access to drawing and production data-shall be furnished to the inspectors at no charge to the ERCMPU. In case of any defects of deficiency notified by the ERCMPU's inspection authority, the Contractor will rectify and make good the same without delay and not proceed further processing of such item(s) of Goods without obtaining approval from the inspection authority. 8.3 Should any inspected or tested Goods fail to conform to the specifications, the ERCMPU may reject them and the Contractor shall either replace the rejected Goods or make all alternations necessary to meet specification requirements free of cost to the ERCMPU. 8.4 The ERCMPU's right to inspect, test and, where necessary, reject the goods after the Goods' arrival at Destination shall in no way be limited or waived by reason of the Goods having previous been inspected, tested and passed by the ERCMPU or its representative prior to the Goods shipment from the country of origin. 8.5 Nothing in Clause 8 shall in any way release the Contractor from any warranty or other obligations under the Contract. 9.0 Packing and Marking 9.1 The Contractor shall provide such packing of the Goods as is required to prevent their damage or deterioration during transit to their final destination as indicted in the Contract. The packing shall be sufficient to withstand, without limitation, rough handling during transit and exposure to temperature, salt and precipitation during transit and open storage. Packing case size and weights shall take into consideration, where appropriate, the remoteness of the Goods' final destination and the absence of heavy handling facilities at all points in transit. 9.2 The packing, marking and documents within and outside the packages shall comply strictly with such special requirements as shall be expressly provided for in the Contract and, in any subsequent instructions ordered by the ERCMPU. 9.3 Each package shall be marked to indicate: a. Name of the Contractor b. Details of items in the package c. Name of the Consignee d. Work order Number e. Gross, net and tare weight f. Destination 10.0 Delivery and Documents 10.1 Delivery of the goods shall be made by the Contractor in accordance with the terms specified by the ERCMPU in its Schedule of Requirements and the Special Conditions of Contract. 11. Insurance 11.1 The goods supplied under the Contract shall be fully insured in Indian Rupees against loss or damage incidental to manufacture or acquisition, transportation, storage and delivery in the manner specified in the Special Conditions of Contract. Page 20 of 43

21 11.2 Where delivery of the Goods is required by the ERCMPU on a CIF basis, the Contractor shall arrange and pay for marine insurance naming the ERCMPU as the beneficiary. After arrival of the goods and prior to the commencement of the mechanical erection the bidder shall arrange a comprehensive storage cum erection insurance naming ERCMPU as the beneficiary. The storage cum erection insurance policy shall cover the entire value of the goods including erection work as per the order value of ERCMPU The Contractor shall provide a copy of the insurance policy along with invoice to the ERCMPU who will make arrangements to extend the validity of the policy, if necessary The Contractor shall a. Initiate and pursue claim till settlement, and b. Prompt make arrangements for repair and/or replacement of any damaged item/s irrespective of settlement of claim by the underwriters Transportation 12.1 The Contractor is required under the Contract to deliver the Goods FOR Destination, specified in the Schedule of requirement. Transport of the Goods to the destination shall be arranged and paid for by the Contractor and the cost thereof shall be included in the contract price Where the Contractor is required to effect delivery under any other terms, for example, by post or to another address in the source country, the Contractor shall be required to meet all transport and storage expenses until delivery In all the above cases, transportation of the Goods after delivery shall be the responsibility of the ERCMPU Incidental Services 13.1 As specified in the Special conditions of Contract, the Contractor may be required to provide any or all of the following services: a. Performance or supervision of on-site assembly and/or start-up of the supplied goods; b. Furnishing of tools required for assembly and/or maintenance of the supplied goods; c. Furnishing of a detailed operations and maintenance manual for each appropriate unit of the supplied goods; e. Performance or supervision or maintenance and/or repair of the supplied Goods, for a period of time agreed by the parties, provided that this service shall not relieve the Contractor of any warranty obligations under this Contract and e. Conduct of training of the ERCMPU's personnel, at the Contractor's plant and/or on-site in assembly, start-up operation, maintenance and/or repair of the supplied goods Prices charged by the Contractor for the preceding incidental services should be included in the price for the Goods. Page 21 of 43

22 14.0 Warranty/Guarantee 14.1 The Contractor warrants that the Goods supplied under the Contract are new, unused, of the most recent or current models and incorporate all recent improvements in design and materials unless provided otherwise in the contract. The Contractor further warrants that the Goods supplied under this Contract shall have no defect arising from design, materials or workmanship (Except in so far as the design or material is required by the ERCMPU's specifications) or from any act or omission of the Contractor, that may develop under normal use of the supplied Goods in the conditions obtaining in the country of final destination. The Contractor also guarantees that the Goods supplied shall perform satisfactorily as per the designed/rated/installed capacity as provided for in the Contract This warranty/guarantee shall remain valid for 12 months after the Goods, or any portion thereof as the case may be, have been delivered and commissioned to the final destination indicated in the Contract The ERCMPU shall promptly notify the Contractor in writing of any claims arising under this warranty Upon receipt of such notice, the Contractor shall, with all reasonable speed, repair or replace the defective Goods or parts thereof, without costs to the ERCMPU If the Contractor, having been notified, fails to remedy the defect(s) within a reasonable period, the ERCMPU may proceed to take such remedial action as may be necessary, at the Contractor's risk and expenses and without prejudice to any other rights which the ERCMPU may have against the Contractor under the Contract This warranty/guarantee shall not cover any damage/s resulting from normal wear and tear or improper handling by the ERCMPU or his authorized representatives For assessing the rated performance of the plant, the combined capacity as well as individual equipment capacity shall be reckoned. The Plant shall be operated for 8 hours continuously per shift Payment 15.1 The method and conditions of payment to be made to the Contractor under the Contract shall be specified in the Special Conditions of Contract The Contractor's request(s) for payment shall be made to the ERCMPU in writing, accompanied by an invoice describing, as appropriate, the Goods delivered and Services performed, and by shipping documents, submitted pursuant to Clause 10, and fulfillment of other obligations stipulated in the Contract Payments shall be made promptly by the ERCMPU within thirty days of submission of an invoice/claim by the Contractor The currency in which payment is made to the Contractor under this Contract shall be Indian Rupees. Page 22 of 43

23 16.0 Prices 16.1 Prices charged by the Contractor for Goods delivered and Services performed under the Contract shall not, vary from the prices quoted by the Contractor in its bid Assignment 17.1 The Contractor shall not assign, in whole or in part, its obligations to perform under the Contract, except with the ERCMPU's prior written consent Subcontracts 18.1 The contractor shall notify the ERCMPU in writing of all subcontracts awarded under the Contract if not already specified in his bid. Such notification, in his original bid or later, shall not relieve the Contractor from any liability or obligation under the Contract Subcontracts must comply with the provisions of Clause Delays in the Contractor's Performance 19.1 Delivery of the Goods and performance of services shall be made by the Contractor in accordance with the time schedule specified by the ERCMPU in its Schedule of Requirements An unexcused delay by the Contractor in the performance of its delivery obligations shall render the Contractor liable to any or all of the following sanctions: forfeiture of its performance security, imposition of liquidated damages and/or termination of the Contract for default If any time during performance of the contract, the contractor or its subcontractor(s) should encounter conditions impeding timely delivery of the Goods and performance of Services, Contractor shall promptly notify ERCMPU in writing of the fact of delay, its likely duration and its cause(s). As soon as practicable after receipt of the Contractor's notice, the ERCMPU shall evaluate the situation and may at its discretion extend the Contractor's time for performance, in which case the extension shall be ratified by the parties by amendment of the Contract Liquidated Damages 20.1 Subject to Clause 22, if the Contractor fails to deliver any or all of the Goods or perform the Services within the time period(s) specified in the Contract, the ERCMPU shall, without prejudice to its other remedies under the Contract, deduct from the Contract price, as liquidated damages, a sum equivalent to: I. 0.25% of the full contract value for each week of delay II. The total amount so deducted shall not exceed 5% of the Contract value. Once the maximum is reached, the ERCMPU may consider termination of the Contract Any incremental taxes and levies on account of delay in performance of the Contract by the Contractor shall be to the Contractor's account. Page 23 of 43

24 21.0 Termination for Default 21.1 The ERCMPU may, without prejudice to any other remedy for breach of contract, by written notice of default sent to the Contractor, terminate the Contract in whole or in part; a. If the Contractor fails to deliver any or all of the Goods within the time period(s) specified in the Contract, or any extension thereof granted by the ERCMPU pursuant to Clause 19; or b. If the Contractor fails to perform any other obligation(s) under the Contract In the event the ERCMPU terminate the Contract in whole or in part, pursuant to para.21.1 the ERCMPU may procure upon such terms and in such manner, as it deems appropriate, Goods similar to those undelivered, and the Contractor shall be liable to the ERCMPU for any excess costs for such similar Goods. However, the contractor shall continue performance of the Contract to the extent not terminated Consequent to such termination of Contract, the ERCMPU shall recover the advance paid, if any, to the Contract along with 18% per annum compounded quarterly on the last day of March, June, September and December on the advance paid for the entire period for which the advance was retained by the Contractor Force Majeure 22.1 Notwithstanding the provisions of Clauses 19,20,21, the Contractor shall not be liable for forfeiture of its performance security, liquidated damages or termination for default, if and to the extent that, its delay in performance or other failure to perform its obligations under the Contract is the result of an event of Force Majeure For purposes of this clause, "Force Majeure" means an event beyond the control of the Contractor and not involving the Contractor's fault or negligence and not foreseeable. Such events may include, but are not restricted to, acts of the ERCMPU either in its sovereign or contractual capacity, wars or revolutions, fires, floods, epidemics, quarantine restrictions and freight embargoes If a Force Majeure situation arises, the Contractor shall promptly notify the ERCMPU in writing of such condition and the cause thereof. Unless otherwise directed by the ERCMPU in writing, the Contractor shall continue to perform its obligations under the Contract as far as is reasonably practical, and shall seek all reasonable alternative means for performance not prevented by the Force Majeure event Termination for Insolvency The ERCMPU may at any time terminate the Contractor by giving written notice to the Contractor, without compensation to the Contractor if; a. The Contractor becomes bankrupt or otherwise insolvent b. The Contractor being a Company is wound up voluntarily by the order of a Court, receiver, liquidator or Manger appointed on behalf of the debenture holders or circumstances shall have arisen which entitle the court or debenture holders to appoint a receiver liquidator or a Manager, provided that such Page 24 of 43

25 termination will not prejudice or affect any right of action or remedy which has accrued or will accrue thereafter to the ERCMPU Termination for Convenience 24.1 The ERCMPU, may be written notice sent to the Contractor, terminate the Contract, in whole or in part, at any time for its convenience. The notice of termination shall specify that termination is for the ERCMPU's convenience, the extent to which performance of work under the Contract is terminated, and the date upon which such termination becomes effective The Goods that are complete and ready for shipment within 30 days after the Contractor's receipt of notice of termination shall be purchased by the ERCMPU at the Contract terms and prices. For the remaining Goods, ERCMPU may elect: a. To have any portion completed and delivered at the Contract terms and prices; and/or b. To cancel the remainder and pay to the Contractor an agreed amount for partially completed Goods and for materials and parts previously procured by the Contractor Resolution of Disputes 25.1 The ERCMPU and the Contractor shall make every effort to resolve amicably by direct informal negotiation any disagreement or dispute arising between them under or in connection with the Contract If, after thirty days from the commencement of such informal negotiations, the ERCMPU and the Contractor have been unable to resolve amicably a Contract dispute, either party may require that the dispute be referred for resolution to the formal mechanisms specified in the Special Conditions of Contract. The mechanism shall b specified in the Special conditions of Contract Governing Language English Applicable law The Contract shall be interpreted in accordance with the laws of the Union of India Notices 28.1 Any notice given by one party to the other pursuant to the Contract shall be sent in writing or by fax or mail/cable and confirmed in writing to the address specified for that purpose in the Special Conditions of Contract A notice shall be effective when delivered or on the notice's effective date, whichever is later Taxes & duties 29.1 The contractor shall be entirely responsible for all taxes, duties, entry tax license fees etc. including unloading until delivery of the contracted Goods, including Page 25 of 43