GENERAL CONDITIONS OF CONTRACT FOR STORES DEPARTMENT These general conditions and any other condition contained in instruction to tenderes for e-tenders and any conditions mentioned specifically in the tender shall be considered as special conditions of contract and shall govern the contract (finalized by means of issue of Purchase Order or Letter of Acceptance) along with the IRS terms and conditions. In case of any contradiction or conflict between IRS terms and conditions and these special conditions of contract, these special conditions of contract shall prevail. In case of any contradiction or conflict between conditions mentioned specifically in the tender and IRS terms and conditions, general conditions of contract or instructions to tenderers for e-tenders, conditions mentioned specifically in the tender shall prevail. In case of any contradiction or conflict in the period of Guarantee/Warrantee mentioned in the specification and IRS terms and conditions, period, mentioned in specification shall prevail. 1.0 Acceptance of the Offers: Railways 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. 2.0 Firm, on whom the Purchase Order will be placed against this tender case, will have to execute the previous order(s), if any, for the tendered item before commencing the supply against the new Purchase Order. 3.0 Quantity to be ordered: a) Railways reserves the right to cancel the tender for full or part quantity tendered without assigning any reason. The rates quoted by the tenderers for the quantity without any condition would be taken as valid for ordering any quantity. b) (i) The Purchaser reserves the right to distribute the procurable quantity on one or more of the eligible tenderers. Zone of consideration of such eligible tenderers will be the right of the Purchaser. (ii) (a) Whenever such distribution/splitting of the tendered/procurable quantity is made, the quantity distribution will depend (in an inverse manner) upon the differential of rates quoted by the tenderers (other aspects i.e. adequate capacity-cum-capability, satisfactory past performance of the tenderers, outstanding orders load for the Railway making the procurement, quoted delivery schedule vis-à-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 Up to 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, Railway shall decide keeping in view conditions laid down in paras (iii) & (iv) below

. b) If splitting of quantity is required to be done by ordering on tenderers higher than the L2 tenderer, then the quantity distribution proportion amongst the tenderers will be decided by transparent/logical/equity based extrapolation of the model as indicated in Para (ii) a above. c) The purchaser reserves the right to counter offer the lowest acceptable rate for bulk ordering to the higher tenderer(s). In the event of rejection of such counter offer(s), the purchaser will reserve their right to decide on the quantity distribution ratio proportion. (iii) The rate of the highest eligible tendered within the zone of consideration has to be, per-se, reasonable to the Purchaser.

General Conditions of Contract for Stores Department (iv) 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 tenderers with due consideration to these constraints and in such a manner as would ensure timely supply of materials in requisite quantity to meet the needs of operation, maintenance, safety etc. of the Railways, regardless of inter-se ranking of the tenderers and in a fair and transparent manner with due conformity to the Principle of natural Justice and Equity. c) Option Clause: The following Option Clause will be applicable for all tenders valuing more than Rs.75 Lakhs:

i. The purchaser reserves the right to decrease the ordered quantity by a quantity not exceeding 30% of the ordered quantity or the quantity unsupplied, whichever is less, on the date of issue of letter intimating such reduction. ii. The purchaser reserves the right to vary the ordered quantity by (+)30% at any time, till final delivery date of the contract, by giving reasonable notice, even though the quantity ordered initially has been supplied in full before the last date of delivery period. 4.0 Procurement from Approved Sources wherever mentioned in the tender schedule. 4.1 Approved by RDSO: 4.1.1 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 i.e. Part-I vendors before opening of tender to manufacture and supply the item. The tenderers have to attach scanned copies of RDSO approval letters along with their E-bids. The status of the firm will be reckoned as on the date of tender opening and not thereafter. But, in case of downgrading/removal/suspension/ banning etc. after opening of tender, such changes shall be taken into account while considering the bids. 4.1.2. Orders on firms approved by RDSO as Part-II vendors shall be Developmental Orders, normally. 4.1.2.1 Orders on firms approved by RDSO as Part-II vendors shall be limited upto 15% quantity normally. 4.1.2.2. The ordering on a Part II approved source with competitive price ranking can be considered beyond 15% in case that source has successfully executed a larger quantity order in the same Railway unit or other Railway units/Production Units in the preceding 3 years. Successful executions will be signified by both quantitative and qualitative performance. Upper limit of quantity to be ordered on such a source will not exceed 25% of the net procurable quantity in a given procurement case with another 5% on new source in deserving cases and with strict compliance of extant procedure on such educational ordering. That is to say, the ordering quantity on a Part -II source can be up to 15% or the highest quantity of a past order, successfully executed in the preceding 3 years in the same Railway unit or other Railway units/Production Units, whichever is higher subject to maximum of 25% of the net procurable quantity in the given procurement case. 4.1.2.3. Aggregate quantity to be ordered on all Part – II approved vendors taken together, however, will not exceed the 25% of the net procurable quantity, in a given procurement case. 4.1.2.4. All the Part - II approved vendors must submit and attach scanned attested photo copies of Purchase Orders, inspection certificates and ReceiptNotes/certificates related to the maximum quantity of the material under procurement, successfully supplied by them in any single order placed on them over preceding 3 years by any zonal Railway/Production Unit. Such bidders are to note that non-submission of such VITAL documents shall be taken as their not having any such past performance and their offers shall be considered further as per extant rules and no back reference in this regard will be made to them. 4.1.2.5. If the tendering firm(s) is not approved by RDSO as mentioned above either for placement of bulk order or for developmental order, than they must submit their credentials details i.e. Machinery and Plant, Testing Facilities, QAP, Technical Manpower, etc as an attachment to

General Conditions of Contract for Stores Department their E-bid. In deserving cases, their bids may be considered for small quantity educational orders after assessment of capacities/capabilities by RDSO on merit. Failure to furnish and attach such requisite credentials as mentioned above will make their offer liable to be ignored straightway. 4.1.2.6. Items where there is no approved source in Part-I list and approved source(s) exist in Part-II list only, offers of such Part-II sources can be considered for placement of bulk quantity orders. 4.2 Approved by DLW/CLW/ICF/CORE/RCF: Same conditions shall apply as in the case of RDSO approved sources as detailed in Para 4.1 above with the exception that wherever “RDSO” is appearing, the same should be replaced by “DLW/CLW/ICF/CORE/RCF”. 4.3 Procurement of materials falling in the category other than those in Para 4.1 and 4.2 above: In these cases, the Railways reserves the right to make bulk procurement from the bidders who conform to/comply with the eligibility criteria (as detailed in the E- 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 that they are capable of executing the orders but whose capacity to supply bulk quantity has not been established in the past. Unless otherwise specifically mentioned in the eligibility criteria, detailed in E-tender, manufacturers having satisfactory past performance in supply of item(s), same or similar to tendered item(s), in the preceding 3 years (Three years), or their authorized agents, shall only be considered for bulk order. Satisfactory past performance will be signified by both qualitative and quantitative performance to zonal railways / PUs. Performance statement shall be filled in the format, provided at Annexure D of instruction to tenderers for e-tendering. Scanned copies of documentary evidence for the performance shall be attached with the offer. 5.0 PREFERENCE TO DOMESTICALLY MANUFACTURED ELECTRONIC PRODUCTS IN GOVERNMENT PROCUREMENT. Preference to Domestically Manufactured Electronic Products (DMEP) in Government Procurement in supply tenders will be for its own use and not with a view to commercial sale or with a view to use in the production of goods for commercial sale. The preference will be given to all the companies registered in India and engaged in manufacture of electronic products subject to fulfilling the eligibility criteria as per the policy and in addition to this Railways Important Terms & Conditions of Tender (SOR)/IRS conditions of contract, updated from time to time.

5.1 Eligibility: DMEP are those Electronic products; manufactured by entities registered in India including Special Economics Zones (SEZs) and engaged in manufacture of such electronic products in India which would include OEM and their Contract Manufacturers, but not traders. Additionally, such products shall meet the criteria of domestic value addition as laid down in the policy, issued vide various Notifications, for being classified as DMEP.

5.2 Terms and Conditions:

5.2.1. Purchaser reserves the right for providing preference to domestically manufactured electronic products in terms of Department of Electronics and Information Technology (DeitY) Notification No.33(3)/2013-1PHW dtd.23.12.2013 read with further Notifications issued from time to time. A copy of the aforesaid Notifications/Guidelines can be downloaded from DeitY website i.e., URL www.deity.gov.in/esdm. Purchase preference for domestic manufacturer, methodology of its implementation, value addition to be achieved by domestic manufacturers, self certification and compliance and monitoring shall be as per the aforesaid Guidelines/ Notifications. The Guidelines may be treated as an integral part of the tender documents. General Conditions Of Contract for Stores Department

5.2.2 The modalities through which the Preference for Domestically Manufactured Electronic Products (DMEPs) shall be operated as follows:

(i) The Electronic products for which preference will be provided to domestic manufacturers shall be the products notified by Department of Electronics and Information Technology (DeitY) and Department of Telecommunications (DOT).

(ii) The quantity of procurement for which preference will be provided to domestic manufacturers shall be minimum 30% (of the total net procurable quantity) or as notified by the Government from time to time (refer to DeitY website i.e., URL www.deity.gov.in/esdm). (iii) The Percentage of Domestic value addition, which qualifies the above mentioned electronic products to be classified as Domestically Manufactured, as notified by Govt of India i.e. Department of Electronics and Information Technology (DeitY) and Department of Telecommunications (DOT) from time to time. (iv) The preference to DMEP shall be subject to meeting the technical specifications and matching L1 price.

5.2.3 Domestic Manufacturers are required to indicate the domestic value addition in terms of Bill of Manufacture (BOM) for the quoted product, in terms of the aforesaid guidelines, in their bid in the following format: Format for Domestic Value Addition in terms of guidelines issued for procurement of Notified Electronic Products by Government: Item No

Item Description

Manufacturer/Supplier Country of Origin

Value Domestic Value addition in %

5.2.4. Bidders claiming to bid in the status of domestic manufacturer, are required to give an undertaking (Self Certification regarding Domestic Value Addition) in the format as given in Form1. Furnishing false information on this account shall attract penal provisions as per the Guidelines /Notifications. 5.2.5. Procedure for award of contracts involving procurement from Domestic Manufacturers: For each electronic product proposed to be procured, among all technically qualified bids, the lowest quoted price will be termed as L1 and the rest of the bids shall be ranked in ascending order of price quoted, as L2, L3, L4 and so on. If L1 bid is of a domestic manufacturer, the said bidder will be awarded full value of the order. If L1 bid is not from a domestic manufacturer, the value of the order awarded to L1 bidder will be the balance of procurement value after reserving specified percentage of the total value of the order for the eligible domestic manufacturer. Thereafter, the lowest bidder among the domestic manufacturers, whether L2, L3, L4 or higher, will be invited to match the L1 bid in order to secure the procurement value of the order earmarked for the domestic manufacturer, In case first eligible bidder (i.e., domestic manufacturer) fails to match L1 bid, the bidder (i.e. domestic manufacturer) with next higher bid will be invited to match L1 bid and so on. However, the procuring agency may choose to divide the order amongst more than one successful bidder as long as all such bidders match L1 and the criteria for allocating the tender quantity amongst a number of successful bidders is clearly articulated in the tender document itself. In case all eligible domestic manufacturers, fail to match the L1 bid, the actual bidder holding L1 bid will secure the order for full procurement value. Only those domestic manufacturers, whose bids are within 20% of the L1 bid would be allowed an opportunity to match L1 bid.

5.2.6. In case of turnkey/system-integration projects, eligibility of the bidder as a domestic manufacturer would be determined on the domestic value addition calculated only for the value of the notified DMEPs (i.e. product notified by Govt of India i.e. Department of Electronics and Information Technology (DeitY) and Department of

General Conditions Of Contract for Stores Department Telecommunications (DOT) from time to time) forming a part of turnkey/systemintegration projects and not on the value of whole project.

5.2.7. At present, the products notified by Department of Electronics and Information Technology (DeitY) and Department of Telecommunications (DOT) are given in Annexure DMEP 1 & DMEP 2. Additionally, the Notified DMEP’s with percentage of procurement and Domestic Value Addition Percentage are also given in Annexure DMEP 3. However, the percentage of procurement and Domestic Value Addition Percentage will be as notified by Government of India i.e. Department of Electronics and Information Technology (DeitY) and Department of Telecommunications (DOT) from time to time.

5.2.8 The DMEPs which are not covered in Annexure DMEP-3 but covered in Annexure DMEP-1 & DMEP-2, the Bill of Material sourced from Domestic Manufacturers (Dom-BOM) will be calculated as per the provisions given in the policy. As per the notifications issued by Department of Electronics and Information Technology (DeitY) and Department of Telecommunications (DOT), Domestic Value Addition in terms of BOM of domestic manufacturers for the Year 1 will be 25% for the purpose of procurement up to 31.03.2015. The Domestic Value Addition for Year 2 onwards shall automatically increase by 5% in terms of the policy.

The methodology for calculating the Percentage of Domestic Value Addition will be as per the Notification issued by the Department of Electronics and Information Technology (DeitY) vide Notification No.33(3)/2013-1PHW dtd.23.12.2013 read with further Notifications issued from time to time.

Formula for calculating the Percentage is as under: Percentage of Domestic Value Addition= Domestic BOM x 100/ Total BOM.

General Conditions Of Contract for Stores Department

Form-1 Format for Affidavit of Self Certificate regarding Domestic Value Addition in an Electronic Product to be provided on ` 100/- Stamp Paper. Date: I, ___________ S/o, D/o, W/o______________________, Resident of _____________ do hereby solemnly affirm and declare as under: That I will agree to abide by the terms and conditions of the policy of Government of India issued vide Notification No.8(78)/2010-lPHW dated.10.02.2012. That the information furnished hereinafter is correct to the best of my knowledge and belief and I undertake to produce relevant records before the procuring authority or any authority so nominated by the Department of Electronics and Information Technology, Government of India for the purpose of assessing the domestic value-addition. That the domestic value-addition for all inputs which constitute the said electronic product has been verified by me and I am responsible for the correctness of the claims made therein. That in the event of the domestic value addition of the product mentioned herein is found to be incorrect and not meeting the prescribed value-addition norms, based on the assessment of an authority so nominated by the Department of Electronics and Information Technology, Government of India for the purpose of assessing the domestic value-addition. I will be disqualified form any Government tender for a period of 36 months. In addition, I will bear the cost of such an assessment. That I have complied with all the conditions referred to, in the Notification No.8 (78)/2010-lPHW dated.10.02.2012 wherein preference to domestically manufactured electronic products in Government procurement is provided and that the procuring authority is hereby authorized to forfeit and adjust my EMD and other security amount towards such assessment cost and I undertake to pay the balance, if any, forthwith. I agree to maintain the following information in the Company’s record for a period of 08 years and shall make this available for verification to any statutory authorities. i. Name & details of the Domestic Manufacturer (Registered office, Manufacturing Unit Location, nature of legal entity). ii. Date on which this certificate is issued. iii. Electronic Product for which the certificate is produced. iv. Procuring agency to whom the certificate is furnished. v. Percentage of domestic value addition claimed. vi. Name and contact details of the unit of the manufacturer. vii. Sale price of the product. viii. Ex-factory price of the product. ix. Freight, Insurance and handling x. Total Bill of Material xi. List and cost value of inputs used for manufacture of the electronic product. xii. List and total cost of inputs which are domestically sourced. Please attach certificates from suppliers, if the input is not in-house. xiii. List and total cost of inputs which are imported, directly or indirectly. For and on behalf of ______________________ (Name of firm/entity) Authorized signatory (To be duly authorized by the Board of Directors) <Insert Name, Designation and Contact No.>

General Conditions Of Contract for Stores Department

Annexure- DMEP 1 Indicative List of Generic Products: S.No . Items 1 Notebooks and Netbooks 2 Tablets 3 Desktops 4 Servers 5 Printers 6 Keyboards 7 Monitors 8 Storage USBs, Memory Cards 9 CCTV and Surveillance cameras 10 ATMs 11 Photocopiers 12 Scanners 13 Faxes 14 Smart cards 15 Mobile Handsets 16 Hand Held Terminals 17 PC Projector 18 POS based devices

General Conditions Of Contract for Stores Department

Annexure- DMEP 2 Indicative List of Telecom and Network Products: S.No . Items 1 SIM Cards (Personalisation & OS in India) 2 Encryption/UTM Platforms (TDM and IP) 3 Core/Edge/Enterprise routers 4 Managed Leased Line Network Equipment 5 Ethernet Switches (L2 and L3), Hubs, etc 6 IP based Soft switches, Media Gateways 7 Wireless, Wireline PABXs 8 CPE (including Wifi Access points and Routers, Media Converters),

2G/3G Modems, Leased line modems, data cards etc 9 Set-Top Boxes 10 SDH/Carrier Ethernet/Packet Optical Transport Equipment 11 DWDM/CWDM systems 12 GPON Equipments 13 Digital Cross-Connects/MUXs 14 Small size 2 G/3 G GSM based Base Station Systems 15 GSM 2G & 3G/4G, CDMA based wireless Access systems including

BTS, BSC, MSC, Media Gateway, Media server, GGSN, SGSN, Node B, RNC, E Node B,EPC, HLR, SMSC & other subsystems.

16 LTE based on broadband wireless access systems (e Node B, EPC etc.)

17 WiFi based broadband wireless access systems (Access Point, Aggregation Block, Core Block, etc.)

18 Microwave Radio systems (IP/Hybrid) 19 Software Defined Radio, Cognitive Radio systems 20 Repeaters (RF/RF-over-optical), IBS and Distributed Antenna system 21 Satellite based systems – Hubs, VSAT, etc 22 Copper access system (DSL/DSLAM), Optical Fibre, Optical Fibre

Cable. 23 Network Management systems 24 Security & Surveillance communication systems (video and sensor

based). .

General Conditions Of Contract for Stores Department

Annexure – DMEP 3 Notified Electronic Products having “Preference for Domestically Manufactured Electronic Products in Government Procurement”: I. Desktop Personal Computers (PCs) For the purpose of this Notification, a Desktop PC shall necessarily consist of a CPU, Memory, Hard disk drive, Keyboard, Mouse and a separate or integrated display unit and should be able to operate independently. Percentage of procurement for which preference to domestically manufactured PCs is to be provided (in value terms)

Percentage of domestic value addition in terms of Bill of Material (BOM) required for the desktop PCs to qualify as domestically manufactured

50% 30% in year 1 Criteria BOM classified as domestic: The domestic BOM of desktop PCs would be the sum of cost of main inputs as specified in Column 1 of the following table provided the inputs individually satisfy the value addition requirement specified in column 2 the table. Main inputs of BOM / Stages for manufacture of desktop PCs

Value addition required for the inputs to be classified domestic BOM

1 2 Processor Domestic ATMP/ fabrication or both Memory Domestic assembly of imported memory chips on imported/

indigenously manufactured bare PCB/ domestic ATMP / fabrication / or combination

Hard Disk Drive Domestic assembly and testing from imported indigenously manufactured parts and components

LCD Monitor Domestic assembly from imported LCD panel where in plastics moulding and stamping of metal parts is done domestically and testing / domestic fabrication of LCD panel or both.

DVD Drive Domestic assembly and testing from imported / indigenously manufactured parts and components

Cabinet + SMPS Domestically manufactured cabinet and domestic assembly and testing of SMPS from imported/ indigenously manufactured parts and components subject to the condition that value of the domestically manufactured parts and components used in the assembly of “SMPS” will be minimum 10% (of the value of part and components used in the manufactured of “ SMPS ) in year 2 which will increase to minimum 20% of the value of part and components used in the manufactured of “ SMPS ) in year 3 and subsequent years

Key Board/ Mouse Domestic assembly and testing from imported /indigenously manufactured parts and components

Mother Board Domestic assembly and testing from imported / indigenously manufactured parts and components except value of bare PCB

Bare PCB Domestically manufactured Final Assembly / Testing and design / development

Domestically assembled / tested and any Intellectual Property (IP) resident in India.

II. Dot Matrix Printers :

A Dot Matrix printer is type of impact Printer that forms dot on a paper by a metal pin of diameter 0.2 mm to 0.3 mm which is driven by electro magnet based on solenoid principle and required character matrix is produced by horizontal and vertical resolution of the dot matrix print head. Dot matrix printers can create carbon copies and carbonless copies based on mechanical pressure of pin. Percentage of procurement for which preference to domestically manufactured Dot Matrix Printers is to be provided (in value terms)

Percentage of domestic value addition in terms of Bill of Material (BOM) required for the Dot Matrix Printers to qualify as domestically manufactured

50% 40% in year 1

General Conditions Of Contract for Stores Department Criteria BOM classified as domestic: The domestic BOM of Dot Matrix Printers would be the sum of the cost of main inputs specified in Column 1 of the following table provided the inputs individually satisfy the value addition requirement specified in column 2 the table. Main inputs in BOM / Stages for manufacture of Dot Matrix Printers

Value addition required for the inputs to be classified domestic BOM

1 2 Main PCB Domestic assembly and testing from imported/

indigenously manufactured parts and components subject to the condition that value of the domestically manufactured parts and components used in the assembly of “Main PCB” will be minimum 10% (of the value of part and components used in the manufactured of “ Main PCB in year 2 which will increase to minimum 15% the value of part and components used in the manufactured of “ Main PCB) in year 3 and subsequent years except value of bare PCB

Bare PCB Domestically manufactured SMPS Domestically assembly and testing from

imported/ indigenously manufactured parts and components subject to the condition that value of the domestically manufactured parts and components used in the assembly of “SMPS” will be minimum 10% (of the value of part and components used in the manufactured of “ SMPS ) in year 2 which will increase to minimum 20% of the value of part and components used in the manufactured of “ SMPS ) in year 3 and subsequent years

Carriage Motors and Paper feed motors Imported as sub assembly and tested domestically along with main printer mechanism.

From Control Panel Domestic assembly and testing from imported/ indigenously manufactured parts and components

Home position/ Paper End Sensors Domestic assembly and testing from imported/ indigenously manufactured parts and components

Main Printer Cabinet and other small plastic components

Domestic Moulding of Printer Cabinets and other parts

Printer Mechanism Assembly Domestic assembly using indigenously manufactured rubber platens, small rubber parts , sheets metal components, Plastic Gears and other Plastic Parts with turned steel shafts and above mentioned sensors and motors

Print Heads and inter connecting cables Domestic assembly and testing from imported/ indigenously manufactured parts and components

Final Assembly / testing and design / Development

Domestically assembled / tested and any Intellectual Property (IP) resident in India.

III. Tablet Personal Computers: For the purpose of this notification a Tablet PC shall necessarily consist of an Integrated Motherboard with a broad CPU / Processor , Memory and Power Module; Display Panel ( Touch Panel + LCD/LED Module ) and Integrated Battery and should be able to operate independently. Percentage of procurement for which preference to domestically manufactured Tablets PCs is to be provided (in value terms)

Percentage domestic value addition in terms of Bill of Material (BOM) requirement for the Tablet PCs to qualify at domestically manufactured

50% 30 % in one year Criteria BOM classified as domestic: The domestic BOM of Tablet PCs would be the sum of the cost of main inputs specified in Column 1 of the following table provided the inputs individually satisfy the value addition requirement specified in column 2 the table.

General Conditions Of Contract for Stores Department Main inputs in BOM / Stages for manufacture of Tablet PC

Value addition required for the inputs to be classified domestic BOM

1 2 Display Panel ( Touch Panel + LCD/LED Module )

Domestic assembly and testing from imported/ indigenously manufactured Touch Panel + LCD/LED Module or combination subject to the condition that from year 3 onwards backlight assembly and testing of the Display Panel shall be done domestically

Integrated Motherboard with a broad CPU / Processor , Memory and Power Module, Semiconductor (i.e. the Semiconductor Chips and module on Integrated Motherboard

Domestically assembly and testing from imported/ indigenously manufactured parts and components except value of bare PCB and Semiconductor BOM (i.e. the Semiconductor Chips and module on Integrated Motherboard) Subject to the condition that the value of domestically manufactured parts and components used in the assembly of “Integrated Motherboard” will be minimum 10% (of the value of part and components used in the manufactured of “Integrated Motherboard) in year 2 which will increase to minimum 20% of the value of part and components used in the manufactured of “Integrated Motherboard) in year 3 and subsequent years. The value of only those Semiconductor Chips and module (including processor and memory) of the Integrated Motherboard less the value of there indigenous design (for which IP is resident in India) on which ATMP operations are carried out domestically will be taken as domestic BOM*

Bare PCB Domestically manufactured Power Adaptor Domestically assembly and testing from

imported/ indigenously manufactured parts and components subject to the condition that value of the domestically manufactured parts and components used in the assembly of “Power Adaptor” will be minimum 20% (of the value of part and components used in the manufactured of “Power Adaptor ) in year 2 which will increase to minimum 30%,40% and 50% in years 3, 4 and 5 respectively

Casing Domestically manufactured casing Battery Domestic assembly and testing from imported/

indigenously manufactured parts and components Accessories ( Camera, Speaker, Wifi, Antenna, etc)

Domestic assembly and testing from imported/ indigenously manufactured parts and components

(i) Final Assembly/ Testing and (ii) Design/ Development

(i) Domestically assembled/ tested and (ii) Intellectual Property (IP) resident in India for any of the above items. The value of IP resident in India for any of the above item shall be reduce from its value in domestic BoM

*This shall be reviewed when the Semiconductor Fab in India is operational. IV. Laptop Personal Computers(PCs): For the purpose of this Notification, a Laptop PC (commonly known in the market as Laptop/Notebook/Netbook/Ultrabook etc) shall necessarily consist of a CPU, Memory, Hard disk

Drive, Keyboard, Touch pad and/or Trackpoint, an Integrated Display Unit, Integrated Battery and should be able to operate independently. General Conditions Of Contract for Stores Department Percentage of procurement for which preference to domestically manufactured Laptop PCs is to be provided ( in value terms)

Percentage domestic value addition in terms of Bill of Material (BOM) requirement for the Laptop PCs to qualify at domestically manufactured

50% 25 % in one year Criteria BOM classified as domestic: The domestic BOM of Laptop PCs would be the sum of the cost of main inputs specified in Column 1 of the following table provided the inputs individually satisfy the value addition requirement specified in column 2 the table. Main inputs in BOM / Stages for manufacture of Tablet PC

Value addition required for the inputs to be classified domestic BOM

1 2 Hard Disk Drive Domestic assembly and testing from imported/

indigenously manufactured parts and components Display Panel (LCD,LED etc) + Back cover+Bezel Domestic assembly and testing from imported/

indigenously manufactured Display Panel, Back cover, Bezel or combination subject to the condition that from year 3 onwards: (i) Back cover shall be domestically manufactured and (ii) Back Light assembly and testing of display panel shall be done domestically

DVD Drive Domestic assembly and testing from imported/ indigenously manufactured parts and components

Cabinet+ Motherboard+ Power Module Domestic assembly and testing from imported/ indigenously manufactured Cabinet, Motherboard, Power Module or combination except value of bare PCB and Semiconductor BoM (i.e., Semiconductor chips & modules on Motherboard) subject to the conditions that: (I) Value of domestically manufactured parts and components used in the assembly of “Motherboard + Power Module” will be minimum 10% (of the value of part and components used in the manufactured of “Motherboard + Power Module”) in year 2, which will increase to minimum 20% (of the value of part and components used in the manufactured of “Motherboard + Power Module”) in year 3 and subsequent years and (II) Cabinet shall be domestically manufactured from year 3 onwards.

Semiconductors (i.e. Semiconductor chips and Modules on Motherboard)

The value of only those Semiconductor Chips and modules (including processor and memory) of the Integrated Motherboard less the value of their indigenous design ( for which IP is resident in India) on which ATMP operations are carried out domestically will be taken as domestic BOM *

Bare PCB Domestically manufactured Power Adapter Domestically assembly and testing from

imported/ indigenously manufactured parts and components subject to the condition that value of the domestically manufactured parts and components used in the assembly of “Power Adaptor” will be minimum 20% (of the value of part and components used in the manufactured of “Power Adaptor”) in year 2 which will increase to minimum 30%,40% and 50% in years 3, 4 and 5 respectively

Keyboard/ Touchpad and/or Trackpoint Domestic assembly and testing from imported/ indigenously manufactured parts and

components Battery Domestic assembly and testing from imported/

indigenously manufactured parts and components

(i)Final Assembly/ Testing and (ii)Design/ Development

(i) Domestically assembled/ tested and (ii) Intellectual Property (IP) resident in India for any of the above items. The value of IP resident in India for any of the above item shall be reduce from its value in domestic BoM.

*This shall be reviewed when the Semiconductor Fab in India is operational. V. Smart Cards: For the purpose of this notification, Smart Card is usually a Credit Card sized plastic card with an Integrated Circuit (IC) contained inside. The IC contains a Microprocessor and Memory. Smart Cards can be contact, contactless and dual interface (both contact & contactless). Some of the applications of Smart Card are Identity Card, Banking Card, Health Card, Vehicle Registration Card etc .

(A) Contact Smart Cards: Percentage of procurement for which preference to domestically manufactured Laptop PCs is to be provided ( in value terms)

Percentage domestic value addition in terms of Bill of Material (BOM) requirement for the Laptop PCs to qualify automatically manufactured

50% 30 % in Year 1 45% in Year 2

65% in Year 3 onwards* Criteria BOM classified as domestic Contact Smart Cards: The domestic BOM of Contact Smart Cards would be the sum of the cost of main inputs specified in Column 1 of the following table provided the inputs individually satisfy the value addition requirement specified in column 2 the table. Main inputs in BOM / Stages for manufacture of Contact Smart Cards

Value addition required for the inputs to be classified domestic BOM

1 2 Plastic Card Body Domestic Manufacturing including sheet cutting

and punching, printing, lamination and testing using imported/ indigenously manufactured raw material, parts and components*

IC Chip Module Domestic assembly and testing of IC Chip Module using imported/ indigenously manufactured raw materials, parts and components*

Milling and Embedding of IC Chip Module on Plastic Card

Milling and Embedding of IC Chip Module on Plastic Card done domestically

(i)Final Assembly/ Testing and (ii)Design/ Development

(i)Domestically assembled/ tested and (ii)Intellectual Property (IP) resident in India for any of the above items. The value of IP resident in India for any of the above item shall be reduce from its value in domestic BoM.

*This shall be reviewed when the Semiconductor Fab in India is operational. (B) Contactless Smart Cards (Includes Dual Interface Cards):

Percentage of procurement for which preference to domestically manufactured Laptop PCs is to be provided ( in value terms)

Percentage domestic value addition in terms of Bill of Material (BOM) requirement for the Laptop PCs to qualify at domestically manufactured

50% 40 % in Year 1 50% in Year 2

70% in Year 3 onwards* Criteria BOM classified as domestic Contactless Smart Cards: The domestic BOM of Contactless Smart Cards would be the sum of the cost of main inputs specified in Column 1 of the following table provided the inputs individually satisfy the value addition requirement specifiedin column 2 the table. Main inputs in BOM / Stages for manufacture of Contactless Smart Cards

Value addition required for the inputs to be classified domestic BOM

1 2

Plastic Card Body Domestic Manufacturing including sheet cutting and punching, printing, lamination and testing using imported/ indigenously manufactured raw material, parts and components*

Card Inlay (Antenna) Domestic assembly and testing from imported/ indigenously manufactured parts and components

IC Chip Module Domestic assembly and testing of IC Chip Module using imported/ indigenously manufactured raw materials, parts and components*

Milling and Embedding of IC Chip Module on Plastic Card

Milling and Embedding of IC Chip Module on Plastic Card done domestically

(i)Final Assembly/ Testing and (ii)Design/ Development

(i)Domestically assembled/ tested and (ii)Intellectual Property (IP) resident in India for any of the above items. The value of IP resident in India for any of the above item shall be reduce from its value in domestic BoM.

*This shall be reviewed when the Semiconductor Fab in India is operational. VI. LED Products: For the purpose of this notification, LED Products are those whose function is to utilize light produced by LEDs and spanning applications in the areas of (i) Illumination, (ii) Optical Displays including true LED TVs (iii) Backlighting, (iv) Signalling and Indication and (v) Transportation. Percentage of procurement for which preference to domestically manufactured Laptop PCs is to be provided ( in value terms)

Percentage domestic value addition in terms of Bill of Material (BOM) requirement for the Laptop PCs to qualify at domestically manufactured

50% 50 % in Year 1 Criteria BOM classified as domestic LED Products: The domestic BOM of LED Products would be the sum of the cost of main inputs specified in Column 1 of the following table provided the inputs individually satisfy the value addition requirement specified in column 2 the table. However, the weightage of total cost of (d) Heat Sink or Thermal Management Solutions, (e) Secondary Optics, (f) System Fixture and Fitting shall not exceed 20% of domestic BOM of the LED Product. Main inputs in BoM / Stages for manufacture of LED Products

Value addition required for the inputs to be classified domestic BoM

1 2 (a) LED Emitter Packaging from imported/ domestically

fabricated bare LED Die subject to the condition that from Year 2 onwards, the bare LED Die shall be domestically fabricated using imported / indigenously manufactured inputs.

(b) Driving Electronics Domestically assembly from imported/ indigenously manufactured parts and components subject to the condition that the value of domestically manufactured parts and components (excluding the value of bare PCB) used in the assembly of “Driving Electronics” will be minimum 10% (of the total value of part and components used in the manufacture of “Driving Electronics”) in Year 1 which will increase to minimum of 20% of the total value of part and components used in the manufactured of “Driving Electronics”) in year 2 and minimum 30% (of the total value of part and components used in the manufacture of “Driving Electronics”) in Year 3 and subsequent years.

(c) Bare PCB including MCPCB Domestically manufactured using imported/

indigenously manufactured inputs. (d) Heat Sink or Thermal Management Solutions

Domestically manufactured using imported/ indigenously manufactured inputs.

(e) Secondary Optics Domestically manufactured using imported/ indigenously manufactured inputs.

(f) System Fixture Domestically manufactured (g) Final Assembly/Testing Domestically Assembled/Tested meeting

Indian standards as notified from time to time. 5.3. If where L-1 firm is non MSE – non DMEP and L-2 firm is MSE along with being DMEP within 15% of L-1, In such a situation L-2 will get preference only for 30% (being DMEP) as 20% (for being MSE) will be covered within that. 5.3.1 .If L-1 is non MSE along with non DMEP and L-2 is MSE along with non DMEP within 15% of L-1 and L-3 is DMEP along with MSE/ non MSE within 20% of L-1. In such a situation 30% or more of purchase order as per notification (for being DMEP) will be given to L-3 and L-2 will be dealt with as per MSE policy. 5.3.2. Further applicability of the two policies in different scenarios are:- (a) L-1 : non DMEP I 30% DMEP and MSE L-2 L-2 : DMEP and MSE (within 15% of L-1) I 70% non DMEP L-1 L-3 : DMEP and MSE (within 20% of L-1 I (b). L-1 : DMEP and non MSE I 20% MSE L-3 L-2 : non DMEP and non MSE I 80% non DMEP L-1 L-3 : MSE (within 15% of L-1) I (c). L-1 : DMEP and MSE I 100% DMEP and MSE L-1

General Conditions Of Contract for Stores Department

6.0 Public Procurement Policy on MSEs: 6.1 In pursuance of the Public Procurement Policy on MSEs agencies mentioned at 5.2 (i) for the item tendered. (ii) MSEs registered with agencies mentioned at 5.2 (i) 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 allow 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 MSE can be together ordered up to 20% of the total tendered value. 6.2 (i) “MSEs who are interested in availing themselves of these benefits will enclose with their offer the proof of their being MSE registered with any of the agencies mentioned in the notification of Ministry of MSME indicated below:- a) District Industries Centers b) Khadi and Village Industries Commission c) Khadi and Village Industries Board d) Coir Board e) National Small Industries Corporation f) Directorate of Handicraft and Handloom g) Any other body specified by Ministry of MSME (ii) The MSEs must also indicate the terminal validity date of their registration. Failing 5.2 (i) & 5.2 (ii) above, such offers will not be liable for consideration of benefits. 7.0 Time Preference In case contract shall be placed on higher tenderer as a result of this invitation to the tender, in preference to the lowest acceptable offer in consideration of offer of early delivery the Contractor will be liable to pay to the Government the difference between the contract rate and that of the lowest acceptable tender on the basis of final FOR destination including all element of freight, Sale Tax, Local Taxes, Duties and other incidentals, in the case of failure to comply supplies in terms of such contract within the date of delivery specified in the tender and incorporated in the contract. 8.0 Quotations for Imported items: 8.1 Quotations in Foreign Currency: 8.1.1. Please note that, in case of Quotations in Foreign Exchange the firms should quote on FOB basis. 8.1.2. 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. 8.2. Imported Stores offered by Indian Agents in Indian Currency: 8.2.1. Any authorized dealer / agent / recognized industrial distributor quoting on behalf of their foreign principal in Indian Rupees shall have to comply with the following:- a. To quote with tender specific authorization from the foreign manufacturer. b. i. While quoting on behalf of foreign principals, tenderers 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. c. The tenderer shall have to undertake in the tender to comply with the following– i. 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. ii. Current and valid authorization/dealership certificate of foreign manufacturer/principal. iii. 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.

General Conditions Of Contract for Stores Department d. Tenderer has to indicate the following while submitting the offer: i. The precise relationship between the foreign manufacturer/principal and their agents/associates. ii. The mutual interest, which the manufacturer/principal and the Indian agent/associates have in business of each other, is to be indicated. iii. Indian agent’s Permanent Account Number is to be indicated. e. Any additional expenditure incurred on account of Customs Duty and Exchange Rate variation during pendency of the Contract will be on contractor’s account. f. 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. 8.3 The amount of Agency commission payable to the Indian Agent will not be more than what is specified in the Agency agreement between the tenderer (i.e. the foreign principal) and the Indian agent. A certified photocopy of the Agency commission agreement must be submitted alongwith the offer. 8.4 The Indian agent will be required to submit a certificate, along with their Agency Commission Bill, confirming that the amount claimed as Agency commission in the bill has been spent/will be spent strictly to render services to the foreign principal , i.e., M/s ………. (i.e. contractor) in terms of agency agreement. The purchaser or their authorized agencies and/or any other authority of Govt. of India shall have rights to examine the books of the Indian Agent and defect or mispresentation in respect of the afore indicated confirmation coming to light during such examinations will made the foreign principal (i.e., the contractor) and their Indian Agent liable to be banned/suspended from having business dealing with Indian Railways, following laid down procedure of such banning/suspension of business dealings. 8.5 Check list, to be filled by the tenderer is filed at Annexure-B of these General Conditions of Tender for Supply Contracts. 9.0 Payment Terms: 9.1 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. 9.2 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. 9.3 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. 9.4 In deserving cases, 98% / 2% payment can also be considered within the framework of extant rules and procedures. 9.5 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 (Proforma at Annexure-A) of the contractor for 10% of the value of the machinery or plant. 9.6 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 Railway reserves the rights to avail themselves of such rebates / discounts.

General Conditions Of Contract for Stores Department 9.7 Payment through NEFT/RTGS: National Electronic Fund Transfer (NEFT) is mandatory from 01-01-2008. No egistration/Renewal of Firms will be granted without NEFT system after 01-01- 2008. All payments after 1.4.2008 are General Conditions Of Contract for Stores Department made only through NEFT/RTGS. Firms have to fill and attach the Mandate Form (as per Annexure C of Instruction to Tenderers for E-Tenders) 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. 10.0 Inspection Clause: 10.1 Material peculiar to Railways such as parts and fittings of rolling stock except raw material, which have been found rejected 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 of assets. All such rejected materials peculiar to Railways should be mechanically defaced to prevent sale to Railways again. 10.2 (i) Material to be pre-inspected by RDSO or RITES at Railway's option, or as stated in this Tender Enquiry. Tenderers 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 inspection 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. 10.3 The Consignee will do final inspection and acceptance of the supplied material after receipt of the material. 10.4 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. 10.5 The material supplied by the successful tender/tenderers shall strictly conform to specification indicated against it. 10.6 No consignment or part of consignment which has once been rejected may again be submitted except in case where the inspecting officer considers the defect may be rectified. The Purchaser or the inspecting officer shall have free access to the works Factory of the manufacturer’s at the all reasonable times. He shall be at liberty to inspect the material used in the manufacture at any stage and may take such actions as may be considered necessary even to terminate the contract if it is found that the agreed quality etc. is not being adhered in the manufacture of the supplies. 10.7 In the event of any delay in supply of material the Administration reserve the right either to purchase material from elsewhere at the risk and cost of the contractor’s or penalize the contractors for such default for the under delivered portion of any supply in terms of IRS conditions of contract. 10.8 All supplies shall be subject to inspection on receipt of stores at destination as specified in individual orders. Not with standing a quotation for delivery in the particular state the contractor’s responsibility will not cease until delivery has been taken at destination by the purchase or by such officer as nominated by him. The decision of the purchase in case of dispute as regards quality or supplies delivered shall be final and shall be entitled to reject any or all supplies as unsuitable. 11.0 Terms of Delivery: 11.1 Mode of dispatch should be preferably by road. Road permit will be issued by consignee after submission of call letter by supplier addressed to Inspecting Agency for inspection of ordered material against same contract No. & date.

General Conditions of Contract for Stores Department 11.2 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. 11.3 The supplier should arrange transit Insurance for risk in transit, since risk in transport in all such cases rests with the supplier. 11.4 The firms who offer to dispatch the Stores by Road or FOR Station of dispatch 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. 11.5 If tenderer fills Nil freight charges in the rate page and mentions delivery terms as FOR: station of dispatch basis, elsewhere, then no freight charges will be reimbursed to the firm i.e. freight charges will be borne by the firm. 11.6 Unless otherwise clearly stated in the tender or contract, the FOR condition shall be “FOR: Destination for deliveries by Road. 12.0 Delivery Schedule: 12.1 The tenderers 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. 12.2 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 exists. Such extensions of delivery dated may be considered with Liquidated damages and Denial Clause as per IRS conditions of Contract. 12.3 Upper limit for recovery of liquidated damages in supply contracts will be 10% (Ten Percent) of value of contract irrespective of delays, unless otherwise provided, specifically in the contract. 12.4 Railway shall recover from the Contractor as agreed Liquidated Damages and not by way of penalty, a sum equivalent to 2% (Two Percent) of the price of any stores (including elements of taxes, duties, freight etc.) which the contractor has failed to deliver within the period fixed for delivery in the contract or as extended for each month or part of a month during which the delivery of such stores may be in arrears where delivery thereof is accepted after expiry of the aforesaid period, subject to a maximum of ten percent of value of the delayed supplies. 12.5 L.D. will not be waived unless reasons of delays in supplies are beyond the control of supplier. 13.0 Cartel Formation: 13.1 Whenever all or most of the approved firms quote equal rates and cartel formation is suspected, Railways reserve the right to place order on one or more firms with exclusion of the rest without assigning any reason thereof. 13.2 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. 13.3 The firms who quote in cartel may be warned that their names are likely to be deleted from list of approved sources. 13.4 Wherever there is suspected cartel formation from approved sources, the Railways reserve the right to place orders on Part-II sources and new sources beyond limits of 15% / 25% and 5% respectively. 14.0 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.

General Conditions of Contract for Stores Department 15.0 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 Proforma of the Warranty bank guarantee is given in annexure ‘A’ of these conditions. 16.0 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. 17.0 Procurement from Manufacturer’s authorized agents/ Distributors: 17.1 Only Manufacturers or their authorized dealers/ distributors/ agents need to quote with tender specific authorization from the manufacturers failing which offers are liable to be ignored. 17.2 One agent cannot represent two Suppliers or quote on their behalf in a Particular tender. 17.3 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. i. 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 manufacturer and not in the ware house/ go- down or Shop of the dealer. ii. Direct dispatch from the premises of the manufacturer to the Railways consignee after inspection and acceptance by RITES/RDSO. iii. Submission of manufacturer’s Test and Guarantee Certificate with each lot of supplies. iv. The authorized agents/distributors price will not exceed to what the manufacturer would have quoted. 17.4 The tenders must give full particulars of their local agents, liaison agent, if any, while submitting their offers. The name of such local agent, his full address, telephone number etc. should be clearly indicated. Any authorization issued by the tenderer subsequent to the opening of the tender will not be entertained. 17.5 Offer of original manufacturer having satisfactory past performance or his authorized agent will only be considered for bulk supply. The bidders must submit documentary evidence to prove credentials of manufacturer. Refer Para 4.3 also. 18.0 ARBITRATION CLAUSE: In the event of any dispute or difference of opinion between the PO placing Authority and contractor as to the respective rights and obligation of the parties here under or as to the true intent and meaning of those present and of any articles or conditions thereof, such dispute or difference of opinion (except the matter regarding which the decision has been specifically provided for in the terms of the contract) shall be referred to the sole arbitration of an officer of this Organization who shall be nominated for the purpose by the GM/NER, for the time being and his decision shall be, final, conclusive and binding on the parties. For the purpose of the contract the GM/NER will mean the Head of NE Railway. In the event of the Arbitrator dying, refusing to act or being unable to act for any reason, it shall be lawful for the GM/NER to appoint another arbitrator in place of the outgoing arbitrator in the manner aforesaid. Subject to as aforesaid, the Arbitration Act 1996 and the Rules there under and any statutory modification thereof for the time being in force shall be deemed to apply to the arbitration proceedings under this clause. 19.0 Subject as otherwise provided in this contract all notices to be given on behalf of the president of India and all other action to be taken on his behalf, will be given or taken by the Dy. Chief Materials Manager/Senior Materials Manager/Asstt. Materials Manager, NE Railway, COS office Gorakhpur, 20.0 The acceptance of this tender shall constitute a binding contract between the successful tenderer and the President of Union of India. General Conditions of Contract for Stores Department 21.0 Bank guarantees in regard to earnest money deposit, security deposit i.e. performance guarantee etc. are acceptable from all scheduled banks except Punjab & Sind Bank.

General Conditions of Contract for Stores Department 22.0 Bank Guarantees (BG’s) to be submitted by suppliers/contractors should be sent directly to the concerned authorities by the issuing Bank under registered post A.D. 23.0 Raw Material secured by Govt. Assistance Where any raw material(s) for the execution of the contract are procured with the assistance of Government either by issue from Government stock or purchase under the arrangements made as permit or Licence(s) issued by Govt. the contractor shall hold the said materials as trustee for government and use each materials, economically and solely for the purpose of the contract against which they are issued and not dispose them off without the permission of the Government and return, if required by the purchaser all surplus or unserviceable materials they may be left with him after the completion of the contract or its termination for any reason, whatsoever, on his being paid such as government may fix with due regard to the conditions of the purchaser shall be borne by the contractor’s in the event of the contract being cancelled for any default on his/their part. The decision of Government shall be final and conclusive. In the event of a breach of the aforesaid conditions the contractor(s) shall in addition to throwing himself/themselves open to action for contravention of terms of the License(s) or permit(s) and/or original breach of trust be liable to account to Government for all money advantage or profit resulting or which in the usual course would have resulted to him/them by reason of such breach.

Controller of stores For & on behalf of the President of India

I/We agree to the above conditions. Signature of tenderer Whether partner/managing director/Proprieter’s Full Address: Telephone No.

General Conditions Of Contract for Stores Department Annexure ‘A’

PROFORMA FOR WARRANTY GUARANTEE BOND To: The President of India’ Acting through The Controller of Stores, North Eastern Railway, Gorakhpur-273012. 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 percent 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 per cent 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 favour for an amount representing 10 per cent 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 up to a maximum amount of _______________ (Rs. ________________________________________) representing 10 per cent of the value of the Stores despatched 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 committed by the 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. up to __________ (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 _______________ __________________________ Read and Accepted. Signature of Tenderer ______________ (Designation) (Banks common Seal) NOTE: 1. The Bank Guarantee shall be executed on non-judicial stamp paper @ ` 5 / thousand of BG value duly attested by Notary Public or Executive Magistrate. 2. Bank Guarantees should be sent directly to the concerned authorities by the issuing Bank under registered post A.D. 12 General Conditions Of Contract for Stores Department Annexure-B Check List to be filled in import cases by tenderer i. Have you submitted the authorization letter Authorizing your agent to quote on this Yes/No tender? ii. Have you indicated the complete name and address of the agents and details of Yes/No the services to be Rendered by the agents? iii. Is the agent going to render after sale service? Yes/No iv. In case the answer to (iii) is yes, confirm that the Agent has necessary Yes/No infrastructure and competent Staff to render the same. v. Have you submitted a copy to your agreement with your Indian agent? Yes/No vi. Manufacturer or their sole selling agents may note that an agent can represent Noted only one firm in a tender and any manufacturer cannot submit two offers against a tender through different sole selling agents or one directly and one through sole selling agent. In such a situation both the offers will be rejected. vii. Have you indicated your Indian Agent’s Income Tax Permanent Account number? Yes/No viii. Are you aware that any payment against the contract, if placed to your Indian Yes/No agent directly by You in currency other than in Indian rupee is against the Indian Laws? ix. Are you aware that failure to disclose the full amount of remuneration/agency Yes/No commission payable to your Indian Agents shall render the contract void?