HEMRAJ MEENA

Date: 2020.04.07
17:44:23 IST
Reason: IREPS
Document
Location: IREPS-CRIS

GENERAL TENDER CONDITIONS FOR DEOPOTS/DIVISIONS

1. Acceptance of the Offers:

The Consignee of Stores is not bound to accept the lowest or any offer nor to assign any reason for
doing so and reserve to himself the right to accept any offer in respect of the whole or any portion
of the item specified in the tender and contractor shall be required to supply at the rate quoted.

1.1. Railways reserves the right to cancel the tender for full or part quantity tendered without assigning
any reason. The rates quoted by the Tenderer for the full quantity would be taken as valid.

2.0 Splitting of tendered quantity:

2.1 Case of no prior decision to split the order -

2.1.1 Normally full order should be placed on L-1 firm. However, if after due processing, it is
discovered that the quantity to be ordered is more than what L-1 alone is capable of supplying
and there was no prior decision to split the quantities, then this aspect should be recorded in TC
Minutes / acceptance in direct acceptance cases. The quantity being finally ordered will be
distributed among the other bidders in a manner that will be fair, transparent and equitable. The
manner of splitting will take specific note of the following parameters

(i) Past Performance of bidders

(ii) Capacity of bidders
(iii) Delivery requirements in the tender
(iv) Quantity under procurement
(v) Vital / Safety nature of the items.

2.1.2 In the absence of any differentiation on the above parameters, the manner of splittings will be
based on the stipulation given in Para 2.2.2. below.

2.2 Case of pre-decided split ordering –

2.2.1 Railway may decide in advance to have more than one source of supply on account of delivery
requirement in tender, past performance and capability of bidders, quantity under procurement
and vital/safety nature of items.

2.2.2 Following provisions (2.2.2 (A) to 2.6) shall be applicable in all such cases of pre-decided split
ordering –

(A) The Purchaser reserves the right to distribute the procurable quantity on one or more of the
eligible Tenderer. Zone of consideration of such eligible Tenderer will be the right of the
Purchaser. The zone of consideration will be a dynamic mix of inter-se position of firms,
supply performance of the firms, quantity being procured, critically of and lead time of supply
of the item, number of established suppliers, their capacity etc.
 (B) Whenever such splitting of the procurable quantity is made, the quantity distribution will
depend (in an inverse manner) upon the differential of rates quoted by the Tenderer (other
aspects i.e. adequate capacity-cum-capability, satisfactory past performance of the Tenderer,
outstanding orders load for the Railway making the procurement, quoted delivery schedule vis
-a -vis the delivery schedule incorporated in the tender enquiry etc., being same/similar) in the
manner detailed in the table below:
Price differential between L1 and L2 Quantity distribution ratio between L1 and L2

Upto 3% 60 : 40
More than 3% and upto 5% 65:35
More than 5% At least 65% on the L1 Tenderer. For the quantity to
be ordered on the L2 Tenderer, TC/TAA shall Decide

In the phrase ‘differential rates quoted by the Tenderer’, the quoted rate would mean

(i) When no price negotiation has been called for, the original rates as obtained at the time of
tender opening. However, the rate of the highest eligible Tenderer within the zone of
consideration has to be per se reasonable.

(ii) When price negotiation has been called for, the reference L1 rate for assessment of ration will
be the original rate of L1 firm (suitable for bulk quantity) – say firm “A” as obtained at the
time of tender opening.

B(I) If splitting of quantity is required to be done by ordering on Tenderer higher than the L2
Tenderer, then the quantity distribution proportion amongst the Tenderer will be decided by
transparent/logical/equity based extrapolation of the model as indicated in above Para.

2.2.3 In cases of pre-decided splitting if the purchaser decides not to split the ordered quantity, the
reason for the same should be recorded in TC minutes/acceptance in direct acceptance cases.

2.4 For cases where the Rlys/PUs had entered into ToT/JV agreements, the following clause should
be stipulated as tender conditions.
As the Rly. has entered into ToT/JV agreement with………no. of firms, they reserve the right
to place orders on all such ToT/JV agreement partners. However, for ratio/proportion of
quantity distribution among such agreement partners, conditions as detailed in Para 2.2.2 (b)
shall apply with the exception that the aspect of ‘per-se reasonability’ will not be applicable.

2.6 In the cases of inadequate Capacity-cum-capability, dissatisfactory past performance, large

quantity of outstanding orders (liquidation of which will take very long time) etc., the
Purchaser shall have the right to distribute the procurable quantity amongst Tenderer with due
consideration to these constraints and in such a manner that would ensure timely supply of
material in requisite quantity to meet the needs of operation, maintenance, safety etc., of the
Railways, regardless of inter-se-ranking of the Tenderer and in a fair and transparent manner
with due conformity to the Principles of Natural Justice and Equity.
Addition – 2.7 Quantity Option Clause - For tenders valuing Rs.75 lakhs and above, the purchaser shall
have the right to increase or decrease the ordered quantity by a quantity not exceeding 30% of the ordered quantity
on the same price and terms and conditions during the currency of the contract, with suitable delivery schedule for
the enhanced quantity. The purchaser can vary the order quantity by exercising the option clause during the
currency of the contract giving reasonable time / notice for executing such increase or decrease. Option clause can
be exercised up to last date of scheduled DP Mentioned in purchase order, even if the supply of original ordered
quantity is completed before the last date of scheduled delivery.

3. Procurement from Approved Sources:

3.1 Approved by RDSO:
3.1.1 Wherever necessary, as per policy of procurement, bulk purchases will be made only from those
firms who have been approved by RDSO for such ordering before opening of tender. The Tenderer
are to attach scanned copies of RDSO approval letters along with their offer. The status of the firm
will be reckoned as on the date of tender opening and not thereafter.

3.1.2 However, cases of downgrading/removal/suspension/banning etc. after Opening of tender shall

be taken into account while considering the offers.

3.1.3 Wherever, RDSO has assessed the capacity cum capability of the firm and has cleared the
source as RDSO vendors for placement of developmental orders, developmental order upto
20% of NPQ may be placed on such sources.

(a) Developmental Vendors shall be eligible for developmental order of 20% of NPQ in regular
tenders. Total quantity to be ordered on developmental sources shall be limited up to 20% of
NPQ in regular tenders.
(b) Approved Vendors shall be eligible for bulk order, as per predefined tender conditions.

(c) Where there is only single approved vendor for an item, developmental order may be given
upto 50% of NPQ on one or more vendors approved as developmental vendors.

(d) Where there is no approved vendor for an item, developmental vendors can be considered for
placement of bulk order without any quantity restrictions. However while considering such
vendors, factors including past performance, Capacity, delivery requirements, quantity under
procurement nature of item, Outstanding order load etc. shall be considered in a transparent
manner, subject to rates being reasonable. Quantity allocation among eligible vendors shall be
based on pre decided tender criteria.

3.1.4 Wherever the vendor approving agency (Other than RDSO) has not classified any of the
vendors for placement of development order, developmental order may be placed upto 20% of
the NPQ on unregistered/untried firms about whom Railway is prima facia satisfied that they
are capable of executing the order. This 20% quantity will be within the NPQ. However, there
may be some case of procurement of materials where Railways may not be willing to
undertake the risk of failure on the part of the supplier on whom the development orders have
been placed. In such cases, Railway may go in for increased purchase quantity and keeping in
view budgetary and other aspects so that 100 per cent order could be placed as a developmental
order outside the NPQ. This is subject to:-
 a) Such tendering firms which are not approved by vendor approving agency (other than RDSO)
for placement of developmental orders must submit their credentials details i.e.,: Machinery &
Plant, Testing facilities, QAP, Technical Man power etc.

b) Such offers are technically suitable.

c) Credential of the firms i.e. firms who have submitted adequate evidence towards their capacity-
cum-capability, past performance etc. and prima facie the Railways are satisfied that the
Tenderer is capable of executing the orders but whose capacity to supply bulk quantity has not
been established in the past, the capacity-cum-capability claimed/exhibited in their offers
submitted, will be verified by the Railways wherever considered necessary before placement of
Purchase Order on unapproved firms either by deputing their representative or by engaging
agencies of RDSO/RITES etc., at the discretion of Railways.

d) Failure to furnish requisite credentials details i.e., machinery and plant, testing facilities, QAP
technical manpower etc., will make the offer liable to be ignored.

3.2 Approved by DLW/CLW/ICF/CORE/RCF/CME/CEE-S.C.RLY:

Same conditions shall apply as in the case of RDSO approved sources as detailed in Para 3.1
above with the exception that wherever “RDSO” is appearing, the same should be replaced by
“DLW/ CLW/ ICF/ CORE/ RCF/CME/CEE-S.C.RLY.”

3.3. Procurement of materials falling in the category other than those in Para 3.1 and 3.2 above:
In these cases, the Railways reserves the right to make bulk procurement from the Tenderer
who conform to/comply with the eligibility criteria (as detailed in the special conditions of
tender) whereas developmental orders may be considered for placement on other sources
whose offers are competitive and who have submitted adequate evidence towards their
capacity-cum-capability and prima facie the Railways are satisfied they are capable of
executing the orders but whose capacity to supply bulk quantity has not been established in the
past.

4.1 Purchase / Price Preference Clause:

The purchaser reserves the option to give a purchase / price preference to the offers from
Public Sector units and /or from Small Scale/Cottage Industries Units, over those from other
firms, in accordance with the policies of the Govt. from time-to-time. The price preference
above cannot however, be taken for granted and every endeavor need be made by them to bring
down cost and achieve competitiveness.

5. Quotations for Imported items:

5.1. Quotations in Foreign Currency:
5.1. 1. Please note that, in case of Quotations in Foreign Exchange the firms should quote on FOB
basis.

5.1.2. Any additional expenditure incurred by the purchaser on account of increased Custom Duty,
Freight charges as also extra cost which may arise on account of Variation in Exchange rate
during the extended delivery schedules, shall be borne by the Contractor.
5.2. Imported Stores offered by Indian Agents in Indian Currency:
Any authorized dealer / agent / recognized industrial distributor quoting on behalf of their
foreign principal in Indian Rupees shall have to comply with the following:-
1. To quote with tender specific authorization from the foreign Manufacturer.
2 (i) While quoting on behalf of foreign principals Tenderer are required to furnish the principal’s
invoice/ proforma invoice along with their quotation.
(ii) Proforma invoices however, may be accepted in exceptional cases where, it is not possible to obtain
the invoices before the contract is placed.
3. The Tenderer shall have to undertake in the tender to comply with the following
a) Consent to furnish copy of customs out passed bill of entry for the goods, relevant to each
consignment Manufacturer’s Test and Guarantee certificate issued by the Manufacturer, Copy
of Bill of Lading/AWB relevant to the consignment; Copy of commercial invoice of the
foreign Manufacturer/principals relevant to each consignment.

b) Current and valid authorization/dealership certificate of foreign Manufacturer/principal.

c) Compliance of sea/air worthy packing condition in Manufacturer’s original packing with

Manufacturer's tamper proof seal and compliance of the Packing condition as laid down in IRS
Conditions of Contract Para- 1800. Failure to comply with any of the aforesaid conditions as
referred above will make the offer liable to be rejected.

4. Tenderer has to indicate the following while submitting the offer:

(a) The precise relationship between the Foreign Manufacturer/Principal and their
Agents/Associates.
(b) The mutual interest which the Manufacturer/principal and the Indian agent/associates have in
business of each other is to be indicated.
(c) Indian agent’s Permanent Account Number is to be indicated.

5. Any additional expenditure incurred on account of Customs Duty and exchange Rate variation
during pendency of the Contract will be on contractor’s account.

6. For bearings manufactured in foreign countries, Visual inspection by RITES inside India after
receipt is acceptable with import documents and original Manufacturer's test and Warranty/
Guarantee certificate. Firm should consent to deposit security money as per IRS conditions for
due execution of the contract if asked to do so. This is irrespective of the fact whether the firm
is registered with this Railway or not.
6. Payment Terms:

6.1 Payment for the stores or each consignment thereof will be made to the contractor on
submission of bill accompanied by the prescribed documents mentioned in the contract.
6.2. 95% payment for the stores or each consignment thereof will be made against Inspection
Certificate and proof of dispatch. For dispatch of material by road, it is the challan of the supplier
duly certified by the consignee Gazetted Officer towards receipt of material at consignee’s end
will constitute the proof of dispatch for the purpose of payment. For rail dispatch, clear and
unqualified RR/PWB may be considered as the proof of dispatch.
6.3 For balance 5%, payment will be made on receipt and acceptance of stores by the consignee,
signified by granting of Receipt Note. In other words, balance 5% payment shall be made
against Receipt Note.

6.4 However, in this connection it is to be made clear that for orders valuing upto Rs.5 lakhs, no
advance payment will be made and only 100% payment will be made against receipt and
acceptance of the material by the consignee i.e., against Receipt Note.

6.5 In deserving cases, 98% / 2% payment can also be considered within the framework of extant
rules and procedures.

6.6 For Machinery & Plant items: 80% payment will be allowed after receipt of the machine in
good and acceptable condition at consignee’s end against inspection certificate and the
supplier’s challan certified by the consignee Gazetted Officer. Balance 20% payment will be
made on successful installation, commissioning and testing of the machine and also furnishing
of a Bank Guarantee towards warranty obligations of the contractor for 10% of the value of the
machinery or plant.

6.7 Discounts / rebates linked with early payment and / or early granting of Receipt Note etc
within specified days will not be considered for determination of inter-se ranking of the offers.
However, the Railways reserves the rights to avail themselves of such rebates / discounts.

6.8 For MSME Firms:

i) 100% payment on or before 45th day from the date of delivery of goods/services along with
inspection certificate at the nominated place/Depot in good condition by the consignee.

ii) Where the department makes any objection in writing regarding acceptance of goods or
services within fifteen days from the date of the delivery of goods at the nominated
place/Depot, the 100% payment will be made on or before the 45th day from the day on which
such objection is removed by the employer.

iii) If a micro or small enterprise firm has not submitted any documentary evidence along with the
tender documents to prove its status of micro or small enterprise, it would not be admissible to
claim any benefit under the MSMED Act 2006 against the orders placed in this tender.

6.9: Mode of payment through Letter of Credit (LC) as option in Supply/Works contracts:
(APPLICABLE ONCE IMPLEMENTED).

1. Ministry of Railways has decided that henceforth, all Tenders invited by Zonal Railways and
Production Units, both for Supplies/ Works (including all service and maintenance contracts),
having estimated value of Rs 10 lakhs and above, shall include in tender conditions, an option
for the supplier/contractor to take payment from Railways through a letter of credit (LC)
arrangement. This would be subject to the following:

(i) The bidder, at the time of bidding itself, shall exercise an option in writing, in favour of taking
payment due against the said tender, through LC arrangement.
(ii) The option so exercised, shall be an integral part of the bidder’s offer. Option once exercised
shall be final and no change shall be permitted, thereafter, during the course of execution of
contract.

(iii) The incidental cost towards issue of LC and operation thereof (LC operating charges, including
bank charges for opening of LC) shall be borne by the supplier/contractor.

iv) The above arrangement should be made a part of the Tender conditions and Contract
conditions.

(v) The LC will be a sight LC.

2. The Banker for Railways for the ensuing one year, for opening domestic letters of credit shall
be State Bank of India through its branches. The arrangement would cover all such contracts
finalized against tender issued in the said year and shall extend till final execution of these
contracts.

3. The schedule of payment liability arising in the contract shall be established by the Railways
based on the prescribed delivery schedule/stages of supply/work, in consultation with supplier/
contractor. The Railway’s Banker should also be involved in the process to assess value of LC
and terms and conditions of LC.

4. The LC condition of Railways shall inter-alia provide that Railways will issue a Document of
Authorization (format enclosed as Ann 1) on claims preferred by supplier/contractor, for
completed Work/Supply to enable them to claim the authorized amount from their Banker. The
Document of Authorization will be issued against each Bill submitted for payment by supplier/
contractor, after exercising laid down checks as per Railways’ Codes and Manuals, in
executive and accounts branches. The Accounts Officer responsible for passing the claim will
issue the Document of Authorization. Issue of Document of Authorization will be captured in
IPAS and IREPS to ensure that there is no duplicate payment against the said Bill and also to
enable the supplier/contractor to view status of the claim. The Letter of credit signed between
the bank and Railway should specifically mention that any excess/wrong payment made by the
bank and later detected by the Railways, will be recovered from the bank.

5. The Railways will ensure that Document of Authorization is generated well within the time
prescribed. Non issue of Document of Authorization must be communicated, with reasons
thereof, to concerned supplier / contractor electronically.

6. The supplier/contractor will present the Document of Authorization to his/her Banker for
necessary payments as per LC terms and condition. After release of payment to the supplier,
the banker of the supplier/Contractor will send this Document to the Railways’ Banker for
release of payment to them (supplier’s Banker). The Railway’s Banker will reimburse, claim
made by Banker of supplier/contractor, against original Document of Authorization after
verifying signatures of authorized signatory of Railways and Bill of Exchange issued by
contractor/supplier.
 7. The LC charges paid by the Railways for opening and operation of LC shall be charged to the
relevant expenditure head:

Misc Advance (LC charges paid to bank) Dr.

Misc. Adv GST (IGST/CGST/ SGST) Dr
Cheques & Bills Cr

The amount of GST paid shall be available for set off against output liability.

8. On issue of Document of Authorization, following accounting entries shall be made:-

Relevant Expenditure head Dr.

Misc. Adv. Cr

(Clearance of LC charges paid to bank from LC operating charges collected from party GST
on incidental charges shall he paid by the party on reverse charge basis)

Sundry Other Earnings - Cr

(Amount recovered over and above LC charges paid to Bank)
Demands Payable/ Misc Advance Cap* Cr.

(As the case may be- as per letter authorization - *Demands Payable for Revenue and Misc
Advance Cap for capital transaction) An invoice shall he issued against party for collecting the
incidental charges at the time of issue of Document of Authorization.

9. The reimbursement procedure in case of accredited banks selected as Railways’ banker will
be directly debiting the amount to the government account through scrolls. In case of non-
accredited banks, the Accounts Officer concerned while authorizing a non-accredited bank to
open LC will send copy of their letter to RBI/ Public Accounts Department / Mumbai and after
verification/checks regarding authorization, RBI/ PAD will forward the papers to RBI/ CAS/
Nagpur with appropriate instructions for debiting Govt. account and make reimbursement to
the paying bank on demand. After making the payment, the non-accredited bank authorized to
open LC will send documents and also Accounts Officer’s letter in original to
RBI/CAS/Nagpur for debiting Govt account and getting reimbursement. After making
payment to the party, the paying bank will also send a copy of the scrolls/documents to the
PAO who issued the authorization for opening of LC. A copy of the scroll will also be send to
Local Point Branch of the bank for settlement and reporting as per extant system in
vogue. The scroll should contain LCDA no. on scroll to facilitate reconciliation. Daily MIS
thereof shall also be sent to CRIS.
10. On receipt of debit scrolls /documents, the Accounts Office will conduct necessary checks and
debit Demands Payable /Misc. Advance (Cap) by credit to suspense head 8660-PSB
Suspense. This suspense will be cleared by the Accounts Officer on receipt of the clearance
memo from CAS/Nagpur.
 11. The Railways will get confirmation from their Banker once the payment is released to
supplier/contractor's Banker. Acknowledgment will be placed in Purchase Order/Contract file
and Contractors ledger and works Register/ Purchase Suspense Ledger will be updated
accordingly.

12. It is expected that Railways would see reduction in rates offered in works and supply contract.
The impact of release of payment through LC should, therefore, be evaluated after a year and
reported to Board for appraisal.

13. Necessary modifications in General Conditions of Contract and IRS condition of contract,
relevant Railway Codes will follow. Relevant applications viz IREPS, IPAS including
integration with SBI software and protocol thereof are being carried out. Once these
modifications are made, this pilot initiative will apply on all Notice inviting Tenders (NIT) of
stores/ works/ services for tenders having value of Rs.10 lakh and above, w.e.f. April/2018.

6.9.14 Instructions for Tenderer on LC mode of Payments.

Scheme of Letter of Credit for Domestic Supplies (including all service and maintenance
Contracts) tenders, having estimated value of Rs.10 lakhs and above.

a. All Tenders invited by Zonal Railways and Production Units, having estimated value of
Rs. 10lakhs and above.

b. The LC will be a sight LC.

c. The bidder, at the time of bidding itself, shall exercise an option, in favour of taking Payment
due against the said tender, through LC arrangement, The option so exercised, Shall be an
integral part of the bidders offer.

d. Option once exercised shall be final and no change shall be permitted, thereafter, during
execution of contract.

e. The incidental cost @0.15% of LC value, towards issue of LC and operation thereof shall be
borne by the supplier/contractor and shall be recovered from their bills.

f. State Bank of India through its branches shall be the Banker for Railways for opening
domestic letters of credit for ensuing year. The arrangement would cover all such contracts
inalized against tender issued during the said period and shall extend till final execution of
these contracts.

g. The schedule of payment liability arising in the contract shall be established by the Railways
based on the prescribed delivery schedule/stages of supply.

h. The acceptable, agreed upon document for payments to be released under the LC so opened:
shall be a Document of Authorization.
 i. The supplier/contractor shall submit their bills for completed supply to the bill processing
authority mentioned in supply/contract agreement to issue Document of Authorization to
enable supplier/contractor to claim the authorized amount from their Banker.

j. Accounts officer responsible for passing the claim will issue the Document of Authorization.

k. The supplier/contractor shall take print out of the Document of Authorization available on
IREPS portal and present his claim to his banker (advising bank) for necessary payments as
per LC terms and conditions. The claim shall comprise LC Document of Authorization, Bill of
Exchange and invoice.

l. The bank shall also recover any amount as may be advised by Railway against the
contractor/supplier.

m. The contractor/vendor shall indemnify and save harmless the railway from and against all
losses, claims and demands of every nature and description brought or recovered against the
Railways by reason of any act or omission of the Contractor/Vendor, his agents or employees,
in relation to the letter of Credit(LC). All sums payable/borne by Railways on this account
shall be considered as reasonable compensation and paid by Contractor/vendor.

7. Inspection Clause:
(a) Material peculiar to Railways such as parts and fittings of rolling stock except raw material,
which have been found rectified during inspection and which could not be rectified, are
required to be defaced by the inspecting authority to avoid recycling of such rejected material
and to avoid ultimate failures to assets. All such rejected materials peculiar to Railways should
be mechanically defaced to prevent sale to Railways again.

(b)(i) Material to be pre-inspected by RDSO or RITES at Railways option, or as stated in this Tender
Enquiry. Tenderer are requested to quote accordingly. At a later date any request for
change in inspection clause will not be considered.
(ii) In case the firm fails to offer the material for inspection against call issued to the inspecting
agency or if the material have to be re-inspected due to rejection of the material at firms
premises by the inspecting agency or due to non dispatch of material within validity of
Inspection Certificate then 50% of the inspection charges applicable for the offered quantity
subject to maximum of Rs 5,000/- and actual cost of the test charges incurred will be paid by
the supplier to the inspecting agency.

(iii) Traders/ authorized agents are required to offer material for inspection at Manufacturer’s
premises only. Inspection of materials at Godowns etc will not be accepted.

(c) Final inspection and acceptance of the supplied material will be done by the Consignee after
receipt of the material.

(d) The rejected material for exclusive use of Railways will be defaced to ensure that the rejected
item are not recycled and supplied to other Railways or purchasers.
7.1 Statutory Variation Clause:
Statutory Variation Clause is applicable on all Statutory Levies such as Duties, Taxes etc.
during the Original Currency of Contract subject to production of documentary evidence.

7.2 The Tenderer should submit Service Tax Registration Certificate indicating Service Tax
Registration number (STRN) along with the Tender.

8. Terms of Delivery:

(a) Mode of dispatch should be preferably by road.

(b) Suppliers should clearly quote-FOR Conditions i.e. station of dispatch or destination. If firm's
offer is FOR Destination then applicable freight charges should be clearly indicated.

(c) Transit Insurance for risk in transit should be arranged by the Supplier, since risk in transport in
all such cases rests with the supplier.

(d) The firms who offer to dispatch the Stores by Road on FOR Station of Despatch basis, but
freight prepaid up to the Destination may seek reimbursement of such freight charges. Such
reimbursement shall be made at actual and against documentary evidence within the upper
ceiling of Freight charges as indicated by them or Rail freight by Passenger Train whichever is
lower. However for evaluation of Offers, it is the quoted Freight which will be considered.

9. Delivery Schedule:

(a) The Tenderer are to note the Railway’s required delivery schedule given in the Tender
schedule/ Offer Form and quote accordingly. Vague Delivery terms like 2/ 32 weeks etc must
be avoided and if quoted will be taken as commercially unresponsive to railway’s requirement.

( b ) Time for and the Date of delivery as specified in the Purchase Order is the essence of the Contract.
However, extension of Delivery date may be considered in deserving cases where genuine
reasons exist. Such extensions of delivery date shall be considered with Liquidated damages
and Denial Clause as per IRS Conditions of Contract Para 702(a), subject to a maximum of ten
percent of the value of the delayed supplies. The upper limit for recovery of Liquidated
Damages will be 10% (Ten Percent) of value of delayed supplies, unless otherwise provided
specifically in the contract.

10. Cartel Formation:

a) Whenever all or most of the approved firms quote equal rates and cartel formation is suspected,
Railways reserves the right to place order on one or more firms with exclusion of the rest
without assigning any reason thereof.

b) Firms are expected to quote for a quantity not less than 50% of the tendered quantity. Offers
for quantity less than 50% of tendered quantity will be considered unresponsive and liable to
be rejected in case Cartel Formation is suspected. Railways however reserve the right to order
on one or more firms any quantity.
 c) The firms who quote in cartel may be warned that their names are likely to be deleted from list
of approved sources.

d) Whenever tender is floated with purchase restriction from sources approved by nominated
authorities and there exists a suspected Cartel situation by approved sources or the rates
available from approved source/Sources are adjudges unreasonably high, despite fair efforts as
permissible, the purchaser reserves the right to place orders on firms outside the approved
vendors list, without any restrictions.

11. Time for making Risk Purchase:

Whereas this will be governed by the relevant clauses of IRS Conditions of Contract, such Risk
Purchase shall be made within 9 months from the date of breach of Contract.

12. Warranty Bank Guarantee:

For items like machinery and Plant, Costly equipment, Capital Spares, the Tenderer will have
to furnish a warranty Bank Guarantee of 10% of Material value to cover their warranty
obligation. The Format of the Warranty bank guarantee is enclosed herewith.

13. Marking of Material Supplied:

The Tenderer should agree to indicate the Manufacture’s Name, Month and Year of
manufacturing by casting/stamping/etching/embossing, at an appropriate place of each piece
supplied, without affecting the functional utility and structural stability of the components/
material.

14. Procurement from Manufacturers authorized agents/ Distributors:

Only Manufacturers or their authorized dealers/ distributors need to quote with Tender specific
authorization from the Manufacturers as per proforma indicated in Annexure -II failing which
offers are liable to be ignored. Where a Manufacturer appoints an agent or a distributor on the
basis of a written agreement with him for a specific territory or specific set of items, he shall
give an undertaking to the following effect.
1. Inspection by RITES/RDSO at the manufacturing premises of the relevant Manufacturer.
RITES/RDSO shall categorically confirm in the Inspection Certificate, that inspection of the
material has been actually made in the manufacturing premises of the Manufacturers and not in
the ware house/godown, shop of the dealer.
2. Direct dispatch from the premises of the Manufacturer to the Railways consignee after
inspection and acceptance by RITES/RDSO.

3. Submission of Manufacturer’s Test and Guarantee Certificate with each lot of supplies.

4. The authorized agents/distributors price will not exceed that which the Manufacturer would
have quoted.
5)(a)(i) In a tender, either the Indian agent on behalf of the Principal/OEM or Principal/OEM itself
can bid but both cannot bid simultaneously for the same item/Product in the same tender.
 ii) In a tender, if Indian agent on behalf of the Principal/OEM or Principal/OEM bids
simultaneously for the same item/product in the same Tender, then both the offers will be
considered ineligible and will be Summarily rejected.

b)(i) If an agent submits bid on behalf of the Principal/OEM, the same agent shall not submit a bid
on behalf of another Principal/OEM in the same tender for the same item/product.
(ii) If an agent submits bids on behalf of the Principal/OEM and also on behalf Of another
Principal /OEM in the same tender for the same item/Product, then Both offers will be
considered ineligible and will be summarily rejected.
(c) In view of the above, Manufacturer may note that an agent can represent only one Firm in a
tender and any Manufacturer cannot submit more than one offer against a tender through
different sole selling agents or one offer directly and Other offers through sole selling agents,
in other words, in a tender, either the Indian agent on behalf of the Principle/ OEM or
Principal/OEM itself can bid but both cannot bid simultaneously for the same items/product in
the same tender. In such a situation all the offers will be rejected. Also a “100% Indian
Subsidiary” of the foreign firm cannot bid through another agent. The Relation between the
Principal/OEM & Agent or Indian Subsidiary (100% or Otherwise) should be contractually
established and clear.
(d) The above conditions shall apply for all types of Tenders.
(e) The Proforma for Tender Specific Authorization from Manufacturers to be uploaded as per
Annexure - II

15. Benefits of MSE/Startups (whether Micro & Small Enterprises(MSEs) or otherwise as

per Public Procurement Policy.
The Public Procurement Policy envisages extending certain benefits/preferential treatment to
MSEs and making efforts for development of appropriate vendors and enhancement of their
participation in government procurements. In order to avail themselves of such benefits and
preferential treatment, the MSEs must be registered with any of the following:-

(i) District Industries Centers

(ii) Khadi and Village Industries Commission
(iii) Khadi and Village Industries Board
(iv) Coir Board
(v) National Small Industries Corporation
(vi) Directorate of Handicraft and Handloom
(vii) Any other body specified by Ministry of MSME.

a) In pursuance of the Public Procurement Policy on MSE, it has been decided that
(i) Tender sets will be provided free of cost to MSEs registered with the above agencies
for the item tendered.
(ii) MSEs registered with the above agencies for the item tendered will be exempted from
Payment of Earnest Money.
(iii) In tenders, participating MSEs quoting a price within price band of L1 + 15% shall be
allowed to supply a portion of the requirement by bringing down their price to L1 price
in a situation where L1 price is from someone other than a MSE and such MSEs can be
together ordered upto 20% of the total tendered value.
 (b) (I) MSEs who are interested in availing themselves of these benefits have to enclose with
their offer the proof of their being MSE registered with any of the agencies mentioned
in the notification of Ministry of MSME as indicated below.
(i) District Industries Centers.
(ii) Khadi and Village Industries Commission.
(iii) Khadi Village Industries Board.
(iv) Coir Board
(v) National Small Industries Corporation
(vi) Directorate of Handicraft and Handloom
(vii) Any other body specified by Ministry of MSME.

(b) (II) The MSEs must also indicate the terminal validity date of their registration. Firm
failing to submit the information as indicated in Para b (i) and (ii) above, such offers
will not be liable for consideration of benefits detailed in MSE Notification of
Government of India dated 23.03.12.

(c) (i) In exercise of Para 16 of Public Procurement Policy for Micro and Small Entrprises
order 2012.the condition of prior turnover and prior experience with respect to Micro
and Small Enterprises in all Public Procurement is relaxed subject to meeting of quality
and technical specifications.

(ii) Prior turnover and prior experience in Public Procurement to all Start-ups (whether
Micro & Small Enterprises (MSEs or otherwise) is relaxed, subject to meeting of
quality and technical specifications in accordance with the relevant provisions of GFR
2005.

(iii) However, there may be circumstances (like procurement of items related to Public
safety, health, critical security, Operation and equipments etc.) where procuring entitles
may prefer the vendors to have prior experience rather than giving orders to new
entitles. For such procurement, wherever adequate justification exists, the procuring
entitles may not relax the criteria of prior experience/turnover for the startups.

16. Payment through NEFT/RTGS

National Electronic Fund Transfer is mandatory from 01-01-2008. No Registration/Renewal of
firms will be granted without NEFT system after 01-01- 2008. All payments after 01-04-2008
are made only through NEFT/RTGS. Firms have to fill and attach the Mandate form (as per
Annexure – B) along with their offers, if not already executed. Purchase Order will not be
issued without mandate forms duly filled and attached scanned copy duly signed by the
Authorized Representative.

17. Force Majeure Clause:

Force Majeure is an event beyond the control of the Supplier and not involving the supplier’s
fault or negligence and which is not foreseeable. Such events may include, but are not
restricted to acts of the purchaser either in its sovereign or contractual capacity, wars or
revolutions, hostility, acts of public enemy, civil commotion, sabotage, fires, floods,
explosions, epidemics, quarantine restrictions, strikes, lockouts and freight embargoes. This
should not be used by a party to effectively to escape liability for bad performance.
 If there is delay in performance or other failures by the supplier to perform its obligation under
the contract due to event of a Force Majeure, the supplier shall not be held responsible for such
delays/failures.

If a Force Majeure situation arises, the supplier shall promptly notify the purchaser in writing
of such conditions and the cause thereof within 21 days of occurrence of such event with
reasonable evidence thereof.

Unless otherwise directed by the Purchaser in writing, the supplier shall continue to perform
its obligations under the contract as far as reasonably practical and shall seek all reasonable
alternative means for performance not prevented by the Force Majeure event.

If the performance in whole or in part or any obligation under the contract is prevented or
delayed by any reason of Force Majeure for a period exceeding 60 days, either party may at
its option terminate the contract without any financial repercussion on either side.

“There may be a Force Majeure situation affecting the purchase organization only. In such a
situation the purchase organization will take up with the supplier on similar lines as mentioned
above. “

18. Requirement of BIS Certification for raw Materials:

If the specification of material used to manufacture the tendered item comes under the
mandatory certification of BIS,(the details of mandatory certification are indicated on the
Bureau of Indian standards(BIS) website-www.bis.org.in under “Product Certification” _
Mandatory Certification” the firm will ensure the purchase of material from the sources which
are having BIS License and with ISI mark. The necessary related documents will be required to
be submitted by the firm if the same is asked for by inspecting agency or any third party. The
firm will produce the trail of documents and test certificates to show that the said item has been
sourced from BIS license and with ISI mark; this will be applicable to individual item and/ or a
part in the assembly/Fabricated item. ISI stamp should be demonstrated by the vendor/supplier/
Contractor on the item or its salvage, which should be available in vendor's Premises.

19. Case where L1 Bidder withdraws:

If the bidder, whose bid has been found to be the lowest evaluated bid withdraws or whose bid
has been accepted, fails to sign the procurement contract as may be required, or fails to provide
the security as may be required for the performance of the contract or otherwise withdraws
from the procurement process, the Procuring Entity shall cancel the procurement process.
Provided that the Procuring Entity, on being satisfied that it is not a case of cartelization and
the integrity of the procurement process has been maintained, may for cogent reasons to be
recorded in writing, offer the next successful bidder, and if the offer is accepted, award the
contract to the next successful bidder at the price bid of the first successful bidder.
20. 1. Technical Bid and Initial Price Offer:

i. Bidder will be simultaneously required to submit a Technical & Commercial Bid and Initial
price offer. Offers found eligible for bulk order shall be categorized as qualified for bulk order
for the purpose of RA, offers found eligible for developmental order shall be categorized as
Qualified for Development order for the purpose of RA.

ii. Offers not complying with essential technical & commercial requirements of the tender shall
be declared as Ineligible for any order.

iii. Initial Price Offer of only those bidders categorized as Qualified for Developmental
Order or Qualified for Bulk Order, shall be opened and tabulated by system separately,
category wise. Extent instructions for tabulation shall apply for tabulation of Initial Price
Offers.

Special Conditions of Contract for Handling of rejection of pre-inspected

item and warranty rejections.

The following conditions for handling of rejection of pre-inspected item and warranty
rejections, are incorporated as special conditions of contract in General Tender Conditions in IREPS.

1.1 Two kinds of rejection occur in case of pre-inspected supplies made by vendors -
A. Pre-inspected material rejected by consignee at the time of receipt
B. Material rejected in warranty.

The methodology to handle these rejections is given below.

A. Pre-inspected material rejected by consignee at the time of receipt:

i) In case of rejection of pre-inspected goods at consignee end, the material rejection advice/
rejection memo should be sent by consignee to all concerned i.e. firm, purchaser, pre-
inspecting agency, paying authority as per the contract etc. without fail.

ii) Financial Recovery: In case payment has been made to the firm for the material, the concerned
Paying Authority as per contract should note the rejection advice details in its recovery register
for effecting recovery of payments made, as the case may be.

iii) If the firm desires to have joint inspection, joint inspection of rejected material will be held
with pre-inspecting agency and the firm. In case of failure of either of the two parties to
associate with joint inspection, the joint inspection should be held by the consignee with
whichever of the two parties comes for joint inspection. Irrespective of whether the party (ies)
attend joint inspection or not, the modality of joint inspection etc will have to be completed
within 21 days of communication of rejection advice to the supplier (in line with IRS
Conditions of Contract Clause 703). For imported material, the time limit will be 45 days.
 iv) Firm may be permitted to collect the rejected goods only after the firm has deposited the
payments already made by Railway (if any) to the firm or equivalent amount has been
recovered for this purpose.

v) In case of replacement supply against the rejected goods, the same should be pre-inspected by
same pre-inspecting agency who passed the material earlier. In line with IRS Conditions of
Contract clause 703, no inspection charge will be paid by Railway to the inspection agency for
the replacement supply.

v) However, in case of component level rejection in an pre-inspected item (which is an assembly)

the replacement supply of that component can be accepted based on firms internal inspection
certificate/guarantee certificate and final inspection by consignee.

B. Material rejected in warranty.

I. Material are rejected in warranty in the following situations:

(a) The material rejected was received by user.

(b) The material rejected was received by user.

Cat.B.I (a) : For Warranty failure in shop / shed of material issued from its associate stores:

All warranty claims will be lodged by the Associate Consignee officer after getting the warranty
rejected material from user under advice note of return stores with reasons of warranty rejection
indicated therein. Before lodging the warranty claim the Associate Consignee will satisfy himself
about the correctness of PO and ensure that other details including reason(s) of warranty rejection are
available with the advice note of return stores. The warranty claim will be processed following
procedure indicated in sub-Para A (i), (ii), (iii) and (iv) of Para 1.1A above except for the following
changes: The ‘rejection advice’ mentioned in Para 1.1A(i) will be replaced by the ‘warranty rejection
advice’. The time which can be taken for the completion of modality of joint inspection as per Para
1.1A(iii) will be 45 days (instead of 21 days) from the date of communication of rejection advice to
the supplier. More time is being given for joint inspection because this is a case wherein supplies have
already been taken into the usage system of Railways. Thus, either the preinspection agency or the
firm or the railways may like to have a more detailed understanding of the failure.

Cat.B.I (b) : For warranty failure in shop/shed of material received from PU (either under sale
issue note or as a purchased component of rolling stock manufactured at the PU or
from a stores depot (under inter depot transfer/sale issue note).

(i) The warranty rejected material will be kept in safe custody by the end user and the Consignee
(which received the original supply) will be advised by the end user about the warranty
rejection duly indicating the reason(s) of rejection with a confirmation that the rejected
material is under end user’s custody.
 (ii) The Consignee (which received the original supply) will raise warranty claim on the firm.
Before lodging the warranty claim, the Consignee will satisfy himself about the correctness of
PO and ensure that other details including reason(s) of warranty rejection are available from
the end user. The warranty claim will be processed following procedure indicated in sub-para
A(i), (ii), (iii) and (iv) of para 1.1A above except for the following changes. The ‘rejection
advice’ mentioned in para 1.1A(i) will be replaced by the ‘warranty rejection advice’. The time
which can be taken for the completion of modality of joint inspection as per para 1.1A(iii) will
be 45 days (instead of 21 days) from the date of communication of rejection advice to the
supplier. More time is being given for joint inspection because this is a case wherein supplies
have already been taken into the usage system of Railways. Thus, either the pre-inspection
agency or the firm or the railways may like to have a more detailed understanding of the
failure.
For imported material, the time limit in Cat I(a) and Cat I(b) will be 90 days.

II Warranty quantity replacement: The warranty quantity replacement will be accounted

under warranty Challan/R-note by the Consignee (which raised the warranty claim as in sub-
para B.I(a) above).

Financial recovery (if any made) against the warranty failure will be refunded to the firm on
warranty quantity replacement.

III Inspection of the replacement supply against warranty rejection:

(A) For cases of replacement supply against warranty failure falling in the category BI(a) above,
the replacement supply should normally be inspected by the same inspection agency which
inspected and passed original supply. Thus for B.I(a), any change in inspecting authority for
the warranty replacement will necessitate a formal amendment in contract.

(B) In case of warranty rejection of item of the category B.I (b) above, it may in some cases be
difficult to re-use the services of inspecting agency which passed the original supply. Similarly
for some items, the end user/consignee may not have the requisite inspection facility/expertise.
Thus for warranty rejection falling in the category B.I.(b) above:-

(i) The replacement supply can be inspected by the same inspecting agency which inspected and
passed the original supply. Payment of inspection charges will be borne by supplier.

OR
The replacement supply can be inspected by authorized representative of consignee.
OR
The replacement supply can be made by firms own internal inspection certificate.

(ii) The decision on the above will rest with the Consignee who raised the warranty claim and
will be indicated in the warranty claim notice.
 (C) However in case the warranty failure is of a component of an assembly supplied, the
component can be accepted on firm’s own Guarantee Certificate/internal inspection certificate
and consignee’s final inspection for both the categories (Cat B (a) and Cat B I [b]) of warranty
failure.

IV Place of warranty replacement – For warranty replacement of category B.1(a), in order to

ensure correct accountal of warranty replacement, the place of warranty replacement will be
the depot which received the original supply. For warranty replacement of failure falling in
category B.I.(b) above, an exemption can be made and the place of replacement supply can be
indicated by the Consignee (at his option) in the warranty claim notice to the firm to be the
end-user’s place.

V. For warranty replacement of the category B.I(b), due care will be taken by the end user to
ensure that accountal of replacement supply etc. are properly taken care of. After settlement
of warranty claim the rejected material will be handed over by the end user to the firm’s
representative. The end user will also inform the Consignee who raised warranty claim about
the replacement.

1.2 At the option of the Consignee/end-user, rectification of the material rejected {under category
1.1(A) and 1.1(B)} may be permitted within railway premises by the firm only after the firm
has refunded the payment (if already made by Railway) or equivalent amount has been
withheld for this purpose. However, from the date of communication of rejection advice, the
rectification activity has to be completed within 21/45 days for indigenous/ imported material
respectively for rejection of the category 1.1(A) and 45/90 days for indigenous/imported
material respectively for the rejection of the category 1.1(B). If more time is taken beyond this,
applicable ground rent will be levied on the firm.

2. In order that quantity shortfall due to warranty failure of Cat.B.I (a) is made up, the Consignee
may prepare an additional demand (equal to the quantity failed in warranty) for procurement,
once recovery towards warranty has been confirmed by Accounts. Any warranty replacement
subsequently made will automatically get reflected in stock and thus there will not be any net
extra procurement. It will however ensure timely availability of materials.
Special Tender Conditions-Implementation of GST
****
1.0 All the bidders/tenders should ensure that they are GST compliant and their quoted tax
structure/rates are as per GST Law.

2.0 1. All vendors should have GST Registration Number.

2. GST Act and Rules are applicable from time to time is applicable.

3.0(A) “In case the successful Tenderer is not liable to be registered under
CGST/IGST/UTGST/SGST Act, The railway shall deduct the applicable GST from his/their bills
under reverse charge mechanism (RCM) and deposit the same to the concerned tax authority”.

(B) Addition to the General Tender Conditions

EVALUATION OF OFFERS UNDER NEW GST REGIME:

1. Purchaser may incorporate HSN number in the tender document. However it shall be the
responsibility of the bidders to quote correct HSN number and corresponding GST rate.

2.i) The offers shall be evaluated based on the GST rate as quoted by each bidder and same will be
used for determining the inter se ranking. While submitting offer, it shall be the responsibility
of the bidder to ensure that they quote correct GST rate and HSN number.

ii) Purchaser shall not be responsible for any misclassification of HSN number or incorrect GST
rate if quoted by the bidder.

iii) Wherever the successful bidder invoices the goods at GST rate or HSN number which is
different from that incorporated in the purchase order, payment shall be made as per GST rate
incorporated in the purchase order or billed.

iv) Vendor is informed that she/he would be required to adjust her/his basic price to the extent
required by higher tax billed as per invoice to match the all inclusive price as mentioned in
the Purchase order.

v) Any amendment to GST rate or HSN number in the contract shall be as per the contractual
conditions and statutory amendments in the quoted GST rate and HSN number under SVC.

(C) Payment of GST on production of Documentary Evidence.

GST will be paid on production of documentary proof. All input credits should be passed on to
Railways by the Supplier. To this effect, the firm should give declaration that all input credits
has been passed on to Railways while submitting the bills.

GST Declaration:
i) Onus of correct classification and rate is on the firm.

ii) GSTwill be paid on production of documentary proof.

iii) The firm shall pass on (as per section 17(1) of CGST/SGST Act ) any reduction in tax rate on
supply of goods or any benefit of input tax credit to the Railway through a commensurate
reduction in price without any undue delay. To the above effect the firm should give
declaration that all the benefits accruing on account of change in tax rate and any additional
input tax credit (ITC benefit) shall be passed on the Railway.

iv) Any kind of reduction in prices obtained by the supplier due to implementation of GST is to be
passed on to the purchaser as per Anti Profiteering clauses of GST Act at any point of time
during the period of the contract.
Annexure -A
PROFORMA FOR WARRANTY GUARANTEE BOND

To
THE PRESIDENT OF INDIA
Acting through the Depot/ Divisional Stores Officer.
South Central Railway,
6th Floor, Rail Nilayam,
Secunderabad-500071

Sub: Guarantee No --------------for ------------------- (Amount) Covering Machine(s) Serial

No --------------- supplied to (Consignee/s) --------------------------------------.

Ref: Contract No---------------dated----------------Placed on M/ s -----------------------

1. WHEREAS M/s ------------------------- one of our constituents, hereinafter called the “Sellers”
have agreed to sell to you (hereinafter referred to as the “ Government”) --------------------------
Nos. of ------------------------ (give description) as per contract No ------------- dated --------------
(hereinafter called “the said contract”).

2. AND WHEREAS according to the terms of said contract, it has been stipulated that payment
of 10 per cent of the value of the stores would be made, provided that the Sellers furnish to the
Purchaser a Bank Guarantee from a recognized Bank, acceptable to the Purchaser for 10
percent of the value of the said contract, valid for a period covering in full the Guarantee
Period as per the Warranty clause of the said conditions of the contract, being the conditions
attached to and forming part of the said contract.

3. AND WHEREAS the Sellers have approached us to give the said Bank Guarantee on their
behalf in your favor for an amount representing 10 percent of the value of the contract which
you have agreed to accept.

4. That in consideration of the promises and at the request, of the said Sellers, we hereby
irrevocably undertake and guarantee to pay to the Government of India or at such other place
as may be determined by you forthwith on demand and without any demur, any sum upto a
maximum amount of -------------(Rs. --------- -) representing 10 per cent of the value of the
Stores dispatched under the said contract in case the Sellers make default in paying the said
sum or make any default in the performance observance or discharge of the guarantee
contained in the said contract.

5. We agree that the decision of the Government whether any default has occurred or has been
sellers in the performance, observance or discharge of the guarantee aforesaid shall be,
conclusive and binding on us.

6. Government shall be at liberty, from time-to-time, to grant or allow extension of time or give
other indulgence to the said Sellers or to modify the terms and conditions of the contract with
the said Sellers without affecting or impairing this guarantee or our liability hereunder.
7. We undertake to pay to the Government any money so demanded notwithstanding any dispute
or disputes raised by the Sellers in any suit or proceeding pending before any Court or Tribunal
relating there to our liability under this present being absolute and unequivocal.
The payment so made by us under this bond shall be a valid discharge to our liability for
payment there under and the Sellers shall have no claim against us for making such payment.

8. This Bank guarantee comes in to force when the balance ten percent of the value of the stores
shipped per Vessel ------------- vide Bill of Lading No. -------------- dated --------------------- or
R/ R No.-------------------- dated ------------------ (in the case of indigenous contracts) under the
said contract, has been paid and will remain in full force and effect up to ------------------ i.e. for
-------months counted from the date of placing the stores in services, and shall continue to be
enforceable for further six months i e. upto ---------- (date), hereinafter called the said date.

9. This guarantee will not be discharged due to the change in the constitution of the Bank or the
Sellers

10. That no claim under this guarantee shall be entertained by us unless the same has been
preferred by the Government within the said date.

Date ---------------Signature-------------------------------
Place -------------Printed Name ---------------------------
Witness ------------------------------------------------------------------- -
(Designation)
(Banks common Seal)
 Annexure-I

LC/DA NO. --------------------- Dt._______

DOCUMENT OF AUTHORIZATION

1. It is certified that Work job assigned in Contract No……………………………….……….

Dated…………………under Inland Letter of Credit No…………………………………….
Dated……………………………….

Or

Goods received/Works order completed Stage-Phas 1/2/3/4/5.

2. The beneficiary of Letter of Credit M/s……………………………is entitled to Receive

payment aggregating INR……………… out of a total LC amount of INR…………….against
the first/second* commercial Invoice No. ____________ dated __________ for INR raised
against the above contract on the strength of this certificate.

3. PAYMENTS ALREADY MADE:

1. Invoice No.
2. Invoice No.
& so on
Total
4. THIS PAYMENT:

5. LC BALANCE AFTER THIS PAYMENT.

Signature & seal of Applicant

(Railway Authority)
*As applicable
 ANNEXURE - II

PROFORMA FOR TENDER SPECIFIC AUTHORIZATION FROM MANUFACTURERS

This letter of Authority should be on the Letter - Head of the manufacturing business concern and should be
signed a person competent and having the power of attorney to bind the Manufacturer.
Ref No: _____________ Date: _________

To,
THE PRESIDENT OF INDIA, acting through
DEPOT/ DIVISIONAL STORES OFFICER,
SOUTH CENTRAL RAILWAY,
MINISTRY OF RAILWAYS,
SECUNDERABAD 500071, TELANGANA

Dear Sir,

Subject: South Central Railway e - tender no._________ opened on ___________

For supply of ________________________________________________
*******

We, ______________________________ (full address with PAN number) established Manufacturer

of __________________________________________________________ having factory / factories
at _________________________ do hereby authorize M/s. ________________________________
(Company's name, full address with PAN number) to represent us, to bid, negotiate and conclude the
contract on our behalf with you against your e-tender no. ______________

It is also certified that:

a) No Company /Firm or individual other than M/s. _______________ is authorized to represent us in regard to
this business against this specific tender.
b) lnspection by RITES/RDSO/Consignees representative will be allowed at our manufacturing premises and
not in the ware house /godown shop of the Dealer.
c) lnspected and accepted material will be directly despatched from our manufacturing premises to
Consignees of South Central Railway.
d) We stand guarantee for the material supplied and Manufacturer's Test and Guarantee Certificate
will be submitted against each lot of supply.
e) We stand guarantee for successful execution of the Contract.

Yours faithfully,
(Signature, Name & Designation)
For and on behalf of M/s.__________________
(Name and address of the Manufacturer)

(NOTE: NO CHANGE IN WORDING OF THE ABOVE PROFORMA IS PERMITTED)