Rakesh_sibar

MATERIAL PROCUREMENT MANAGEMENT

1

SUBITTED FOR THE PARTIAL FULFILLMENT OF THE DEGREE OF MBA (FULL TIME), SESSION: 2009-11

SUBMITTED TO submitted by

Shri Amal Sarkar Jt. Financial Advisor,Finance section, DVC, BTPS

TABLE FOR CONTENT


2

Acknowledgement………………………………………………………

Company Profile ………………………………………………………...

INTRODUCTION OF D.V.C. ……………………………………………………

Preface of Material Procurement Management …….

Objectives of material Procurement management…………..

DVC, BTPS (B) perspective………………………………………………………..

Flow chart for material Procurement action in DVC, BTPS ‘B’….

Steps for material Procurement ……………………………………..

Check list of a purchase proposal placed or prepared by user section……………… …………………………………………………………

Pre – enquiry activities ……………… …………………………………… Qualifying requirements…………………………………………

Set up of QR…………………………………………………………… Determination of cost of tender paper & EMD………………… Mode of submission of tender…………………………………….

Pre-bid conference…………………………………………..... Format for approval for invitation of tender…………………. Format for NIT/ enquiry……………………………………….. Tender opening…………………………………………………. Comparative statement……………………………… Tender committee report……………………………………… Format of purchasing order……………………………………

Case study………………………………………………..

ACKNOWLEDGEMENT


3I would like to take opportunity to express my gratitude to my guide Mr. Amal Sarkar,(Joint Financial Advisor), B.T.P.S, DVC, for his guidance , encouragement and for his valuable suggestion without which this study would have been difficult .

I would also like to express my gratitude to Mr. Nilesh kumar Shaw (Finance Officer), Mr. Vinod Baruri (Asst. Financial Advisor), who have admit their busy schedules and have taken out time to help me with the study .My gratitude also goes to all the employees of DVC, B.T.P.S. who have contributed their opinion to make this study meaningful.

I am truly gratified to all my friends and faculty members who have come up with assistance and suggestion within their respective capacities.

DATE

PLACE


4

COMPANY PROFILE AT A GLANCE

DAMODAR VALLEY CORPORATION

TYPE Formed under special Act of Parliament (Act no. Xiv of 1948)

FOUNDED 7th , July 1948

HEADQUATER DVC Tower, VIP Road ,KOLKATTA -700054

KEY PEOPLE Chairman : S.Biswas, IAS

Secretary :

Financial advisor :

ACTIVITIES Generation & distribution of electricity, Flood control and irrigation.

REVENUES 10600 Crores

EMPLOYEES 12000

WEBSITE www.dvcindia.org.

INTRODUCTION OF D.V.C.

Damodar Valley Corporation (DVC), one of the first multipurpose integrated river valley

projects of independent India, came into being on the 7th July 1948 by an Act of the Central

Legislature. Initiated basically as multipurpose project, D.V.C. has to shift its basic

objectives. Though at present, DVC has practically become synonymous with the power


5sector in eastern India, it has been given due importance to the other responsibilities

assigned to it.

D.V.C. command area covers around 24,235 sq. Kms spreading over 14 districts

(namely Hazaribagh, Koderma, Dhanbad, Bokaro, Giridhi, Chatra, Palamau, Ranchi,

Dumka, Burdwan, Hoogly, Howrah, Bankura and Purulia) of Jharkhand AND West Bengal.

DVC supplies power to the core sector including Collieries, Steel Plants, Railways beside

State Electricity Board of Jharkhand and West Bengal and other big and medium size

industries of the region.

HISTORY:

Damodar Valley Corporation is India’s first multipurpose river valley project

that was originally conceived with the view of taming the turbulent 1Damodar River. The

river generally known as ‘Deonad’, in the upper most reaches, flows in a generally south-

easterly direction for a distance of approximately 290 kms through Jharkhand. On entering

the deltaic plains of West Bengal, the river abruptly changes its course to southernly

1


6direction, ultimately joining the river Hoogly. Its principle tributaries in the upper reaches

are Maluah, Bokaro, Konar, Jamunia and Barakar.

Earlier described as the ‘River of Sorrow’ for causing untold miseries through devastating

floods that occurred with regular frequency for over a century, the calamity recorded its

climax in 1943 with a terrible loss of life and property, famine and disruption of trunk

communication.

To arrest the fury as well as harness the resources of Damodar Valley Region, a 10-

member enquiry committee was set up that includes the noted physicist Dr. Meghnath Saha

and the Maharaja of Burdwan. The findings and recommendations led to the adoption of

Tennessee Valley Authority model of the USA along with a Preliminary Memorandum, a

comprehensive approach which was prepared by Mr. W L Voorduin. Thus was born the

Damodar Valley Corporation on July 1948.

There has been no looking back since.

THE MISSION:

DVC mission at the time of its inception on July 7, 1948 was flood control,

providing water for irrigation and other uses, generation, transmission and distribution of

electrical energy, checking soil erosion and the overall socio-economic well being of the

inhabitants of Damodar Valley area and where the DVC operates. The DVC’s mandate as

given in the DVC Act has, however, to be viewed today in the perspective of the current

national priorities and the regional needs. In keeping with the needs of the times, greater

emphasis has had to be laid on generation, transmission and distribution of electrical energy.

This reshuffling of priorities, which has led to an increase in emphasis of generation of

power, has kept pace with other activities, which ensures harmonious environmental and

social growth.

This emphasis on generation of power has gained more importance recently as

Ministry of Power has advised DVC to plan capacity addition programme for 10 th and 11th


7Five Year Plans. Accordingly, the perspective plan for generation and outlay projections for

the 10th and 11th plans have been submitted the Ministry. DVC’s decision to take up pithead

projects in future, is in line with the national policy of setting up power plants at or near the

pitheads and transmitting power generated to other regions after meeting DVC’s demand.

Keeping this in mind, the Corporation has already formed a joint sector power company at

Maithon with the private enterprise BSES and the work for setting up the power plant in

progress.

The capacity addition programme of DVC has been envisaged based on demand for

power at national level, as well as future power demand in DVC command area and

adjoining areas covering the states of West Bengal and Jharkhand. A part from the generated

power from the proposed new units will be supplied to consumers of DVC command area,

while the balance part will be transmitted to the regions having deficit of power. To export

power out of the valley, DVC has decided to complete further matching new additions in the

transmission system within 10th Five Year Plan. DVC is also aiming at value addition to its

services by achieving higher efficiently and productivity.

PRIMARY FUNCTION OF THE CORPORATION:

The promotion and operation of scheme for irrigation. Water supply and drainage.

The promotion and operation of scheme for generation, transmission and distribution of

electrical energy both Hydro Electric and Thermal Electric.

The promotion and operation scheme for flood control in the Damodar River and its

tributaries and channels.

The promotion and control of navigation in the Damodar River and its tributaries.


8 The promotion of afforestation and control of Soil Conservation in Damodar Valley area.

The promotion of public health and agricultural industrial economic and general well being

in the region of Damodar Valley.

SECONDARY FUCTIONS OF THE CORPORATION :

1) The corporation may establish maintain and operate laboratories, experimental and

research station and forms for conducting experiments and research for: -

i) Utilizing the water, electrical energy and other resources in the most economical

manner for the development of the Damodar Valley.

ii) Determining the effects of its operations on the follow conditions on the Hoogly

River.

iii) Improvement in Navigation Conditions in Kolkata.


92) The corporation may set up its own planning, designing, construction and operating agencies for

carrying on the business.

CORPORATE OBJECTIVES:

To generate power at minimum possible cost.

To supply quality power at the cheapest possible tariff.

To adopt alternative cost-effective strategy for increasing the life of existing old thermal

power plant and updating their capacity.

To constructing new units in existing power stations within the prescribed time frame and at

the lowest possible cost.

To make flood control system more effective and release more water for irrigation, industrial

and domestic use.

To contribute to national progress and discharge social responsibility by improving the

quality of life of life of the inhabitants of the village neighboring DVC’s major projects.

To improve further financial health of the corporation by efficient industrial and commercial

practices.

To continuously improve the efficiency of the DVC workforce though manpower planning and restructuring along with training whenever necessary

STATUS OF POWER PROJECTS TAKEN UP BY DVC

A. Capacity Addition Programme in 10 th Plan (2002 – 2007)

Sl. No. Project Capacity

1. Mejia TPS Extn. Unit – IV* 1 X 210 MW

2. Mejia TPS Unit – V & VI* 2 X 250 MW


103. Chandrapura TPS Unit – VII & VIII* 2 X 250 MW

A. (i) To be implemented by MPL (A wholly owned subsidiary of DVC)


1. Maithon Right Bank TPS 4 X 250 MW

Extension Projects

B. Capacity Addition (8000 MW) taken up in 10 th Plan with commissioning in 11 th Plan.


1. Durgapur Steel TPS 2 X 500 MW

2. Bokaro Steel TPS 2 X 500 MW

3. Koderma TPS Stage – I : 2 X 500 MW

Stage – II : 2 X 500 MW

4. Ramgarh TPS Stage – I : 2 X 500 MW

5. Panchet Hill TPS 2 X 500 MW

B. (i) To be Implemented by MPL (A wholly owned subsidiary of DVC)


1. Maithon Left Bank TPS Stage – I : 2 X 500 MW

Stage – II : 2 X 500 MW


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D.V.C. was born to meet a great challenge an uphill tack of transforming a valley of

sorrow to a valley of prosperity by taming the violent river Damodar. If one now looks at

prosperous farms in the valley or brightly it streets in the districts. The green forest around the

hill is impressed without being aware of the hard labour of thousands of people of D.V.C., who

worked day and night to stop destruction of crops and habitation by divesting floods, to remove

the darkness prevailing in the valley to bring a change of quality of the people in the valley.

LOCATION:

The upper valley of the Damodar two districts fully (Hazaribagh & Dhanbad) and

four districts partially (Ranchi, Santhal Pargans, Palamu & Giridih) in the state of Jharkhand, the

lower valley falls into three districts fully (Bardawan, Hogly & Howrah ) two districts partially

( Bankura & Purulia ) in the state of West Bengal.

AREA:

The total area of valley region is approximately 57,000 Sq. Km. of the DVC’s command

area is approximately 24,235 Sq. Km. In physical and economical terms DVC’s operations cover

Jharkhand and West Bengal and touch neighboring states of Bihar, Orissa, Madhya Pradesh and

the upper valley regions of Damodar receives the water of about ten smaller streams and rivers.

In the lower valley several rivers, which were once its distributions now flow sluggishly.

DVC come into being essentially to tame the turbulent Damodar and harners its destructive

forces for the generation of power. Even at the early stage the Corporation realized the potential

of the coalmines in the area and Thermal Power generation was among its priorities.

Side by side with its dams at Maithon, Panchet, Tiliya, and Konar DVC installed Thermal

Power Plants at Bokaro, Durgapur, Chandrapura and Mejia. From these sources, DVC have

developed the total network of operations. Today DVC is the driving force behind the coal,

steel, and railway industries – some key sectors of the economy. The Corporation supplies power


12to five of the seven major Steel Plants in the country meets the greater potion of the power

supply of Railway system in this region and helps in raise a major part of India’s Coal Industry.

The DVC has trigged growth in region described as one of the “longest industrial crescents in the

world”.

PIONEERING ROLE:

First multipurpose river valley project of Government of India.

Only Government of India organization generating power utilizing three sources – coal,

water and gas.

First Government of India projects managing generation, transmission and distribution of

electricity.

First underground hydel station at Maithon.

Bokaro Thermal Power Station, nation’s biggest thermal power plant in the 50’s.

Bokaro Thermal Power Station boilers, first to burn pulverized coal in India.

First re-heat units in India utilizing high steam parameters at Chandrapura Thermal Power

Station.

Mejia Thermal Power Station, first in eastern India for application of Direct Ignition of

Pulverized Coal (DIPC) for reducing oil consumption in boiler.

Mejia Thermal Station, first of its kind in eastern India with tube mills in service for zero

rejects.

DVC CONSUMERS

Major Power Consumers


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RAILWAYS Eastern & South Eastern Railways in West Bengal and Eastern Central

Railways in Jharkhand. Chittaranjan Locomotive.

STEEL TISCO – Jamshedpur, Bokaro Steel Plant and Durgapur Station Plant and

IISCO, Burnpur and Kulti.

COAL Eastern Coalfields Ltd., Bharat Coking Coal Limited and … Coalfields

Limited.

SEB & PU West Bengal State Electricity Board, Jharkhand State Electricity Board

and Dishergarh Power Supply Company.

PSU Hindustan Cables Ltd., Project & Development (India) Limited, Bharat

Aluminium Co.


14Other Important Consumers

Associated Cement Co. Anjaney Ferro Alloys Ltd.

Atibir Hi Tech (P) Ltd. Balaji Electro Steel Ltd.

Bhaskar Shrachi Alloys Ltd. Bihar Foundry & Casting Ltd.

Dayal Steels Ltd. Graphite India Ltd.

Hindustan Malleables & Forging Ltd. Howrah Gases Ltd.

Impex Ferro Tech. Ltd. Kartik Alloys Ltd.

Maithon Alloys Ltd. Mihijam Vanaspati Ltd.

Mongia Hi Tech (P) Ltd. Naiyadih Hi Tech Pvt. Ltd.

Natraj Iron & Castings Ltd. Praneet Ispat Udyog Pvt. Ltd.

Shivam Iron & Steel Casting Ltd. Shyam Ferro Alloys Ltd.

Shyam Steel Ltd. Srinivas Ferro Alloys Ltd.

Monnet Ferro Alloys Ltd. Gautam Ferro Alloys Ltd. – A unit

Larsen & Turbo Ltd. Durgapur Cement Works

ACC, Sindri


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Sale of Power

The commercial activities of DVC include supply of electricity and non agricultural water.

The entire spectra of Techno-Commercial activities involving Technical, Financial, Commercial

and Legal nodes pertaining to supply of electricity and non agricultural water supply business are

handled by commercial Engineering Department.

Sale of Power during 2003 – 2004

Category 2000-01 2003-04

Railways 502 MU 637 MU

Steel 2834 MU 2554 MU

Coal 2934 MU 3259 MU

M & O 1574 MU 1489 MU

Total 7844 MU 7939 MU


16

Railways6%Steel36%

Coal37%

M & O20%

Railways Steel Coal M & O


17

Power Supply

In accordance with the provision of DVC Act only DVC can supply electricity at a pressure from

and above 30,000 volt in Damodar Valley area. However, DVC may permit others to sell and

transmit electricity in above pressure band within Damodar Valley area as well. DVC is

occupying a pivotal position in the powers scenario in the Eastern Region. Bulk of DVC Power

goes to core sector industries which play an extremely vital role in the National productivity

level. DVC supplies bulk power at 33 KV, 132 KV and 220 KV at 122 different locations to a

number of industries and distributing licensees.

Water for Industrial and Domestic Purpose

In 2003-04, DVC has supplied 49,075 MG (Approx.) of raw water to water consumers and

earned revenue of Rs. 7.21 Crores. At present, water tariff charged by DVC in Rs. 2.50 per 1000

gallons.

DVC INFRASTRUCTURE:

DVC Command Area : 24235 sq. kms.


18POWER MANAGEMENT

Total Installed Capacity : 2761.5 MW

Thermal Power Stations : Five; Capacity 2535 MW

Hydel Power Station : Three; Capacity 144 MW

Gas Turbine Station : One; Capacity 82.5 MW

Sub-Station & Receiving Station : At 220 KV – 7

: At 132 KV – 31

: At 33 KV – 15

Transmission Lines : At 220 KV – 1164 Ckt.Kms

: At 132 KV – 3173 Ckt.Kms

: At 33 KV – 1064 Ckt.Kms

WATER MANAGEMENT

Major Dams and Barrage : Tilaiya, Konar, Maithon, Panchet Dams and

Durgapur Barrage

Irrigation Command Area : 5.69 lakhs hectares

Irrigation Potential Created : 3.64 lakhs hectares

Flood Reserve Capacity : 1292 million cu. m.

Canals : 2494 Kms.


19

SOIL CONSERVATION

Forest, Farms, Upland &

Waste land Treatment : 4 lakh hectares (approx.)

Check Dams : 10,000 (approx.)

DVC POWER PLANTS AT A GLANCE :

Name Location Capacity

(Original)

Capacity

(Derated)

Commissioning

HYDEL River-Barakar

Dist-Hazaribag

State-WB

4 MW

(2 X 2 MW)

4 MW U-I : Feb’53

U-II : July’53Tilaiya

Maithon River-Barakar

Dist-Bardwan

State-WB

60 MW

(3 X 20 MW)

60 MW U-I : Oct’57

U-II : Mar’58

U-III : Dec’58

Panchet River-

Damodar

Dist-Dhanbad

State –

Jharkhand

80 MW

(2 X 40 MW)

80 MW U-I : Dec’59

U-II : Mar’91


20

TOTAL

HYDEL

144 MW 144 MW

THERMAL Dist-Bokaro

State –

Jharkhand

247.5 MW

(3 X 57.5)

+

(1 X 75 MW)

175 MW

(3 X 45MW)

+

(1 X 40MW)

U-I : Feb’53

U-II : Aug’53

U-III: Oct’53

U-IV: Apr’60

BOKARO ‘A’

BOKARO ‘B’ Dist-Bokaro

State –

Jharkhand

630 MW

(3 X 210 MW)

630 MW

(3X210MW)

U-I : Mar’86

U-II : Nov’90

U-III: Aug’93

Chandrapura Dist-Bokaro

State –

Jharkhand

780 MW

(3X140MW)

+

(3x120MW)

780 MW

(3X140MW)

+

(3x120MW)

U-I : Oct’64

U-II : May’65

U-III: July’68

U-IV: Mar’74

U-V : Mar’75

U-VI: Mar’79

Durgapur Dist-Bradawan

State-WB

500 MW

(2 X 75 MW)

+

(1 X 140 MW)

500 MW

(2X75MW)

+

(1X140MW)

U-III: Dec’66

U-IV: Sept’82


21+

(1 X 210 MW)

+

(1X210MW

Mejiya Dist-Bankura

State-WB

840 MW

(4 X 210 MW)

840 MW

(3X210MW)

U-I : Mar’96

U-II : Mar’98

U-III: Sep’99

U-IV

TOTAL

THERMAL

2787.5 MW 2535 MW

GAS

TURBINE

Dist-Dhanbad

State –

Jharkhand

82.5 MW

(3 X 27.5MW)

82.5 MW U-I : Oct’89

U-II : Oct’89

U-III: Oct’89

Maithon

+ 3014 MW 2761.5 MW

Anticipated System Growth :

Plan Period

Year

Energy Requirement

(MU)

Peak Demand

(MW)

10th Plan 2002 – 2003 9307.52 1758

2003 – 2004 9635.00 1819

2004 – 2005 10018.08 1892

2005 – 2006 13588.80 1986

2006 – 2007 14155.00 2145

11th Plan 2007 – 2008 15146.00 2340


22

Anticipated System Growth :

Plan Period

Year

Energy Requirement

(MU)

Peak Demand

(MW)

10th Plan 2002 – 2003 9307.52 1758

2003 – 2004 9635.00 1819

2004 – 2005 10018.08 1892

2005 – 2006 13588.80 1986

2006 – 2007 14155.00 2145

11th Plan 2007 – 2008 15146.00 2340


23

1st Plan (51-56)

2nd Plan

(56-61)

3rd Plan (61-66)

Annl. Plan

(66-69)

4th Plan (69-74)

5th Plan (74-79)

Annl. Plan

(79-80)

6th Plan (80-85)

7th Plan (85-90)

Annl. Plan

(90-92)

8th Plan (92-97)

0

500

1000

1500

2000

2500

3000

524

804

1061.5

1181.5

1361.5 1361.5

1549

1661.5

1966.5

2761.5

GROWTH OF DVC INSTALLED CAPACITY (MW)


24

MINING ACTIVITIES:

BERMO MINES

The Past:

DVC planned its first Power Plant at Bokaro in 1951. To meet its requirement of coal, a

captive mine is also acquired at Bermo from the Indian Railways the same year. Initially, DVC

resorted to opencast mining till 1976-77; the average production during this period was

approximately 2.5 million tones per annum. Due to an increase in depth in1974-75, underground

mining started in 1978-79. However production receded to an average of 1.2 millions tons per

annum between 1977-78 and 1985-86, indicating underground coal-production was becoming un

economical. So underground mining activities were stopped and very low-scale residual mining

was continued. Production, however, reduced further and 1992-93 saw the production of only

6517 tons of coal.

The present:

The mine was reopened on 17th September 1993 through open cast instead of

underground mining. Since then it has had steady production of approximately 0.3 million tons

per annum. Production during 1999-2000 was 0.3706 million tons; an all-time record; the target

was 0.37 million tons.

This record production was achieved without any accident or casualty in the mines. The

mines bagged the award of “Safety Shield” for overall best safety performance and in

mechanical engineering in 1999-2000.


25Records Achieved in 1999-

2000

Previous Record

Annual Production (MT) 3,70,612 3,66,840 in 1998-

1999

Monthly Production

(MT)

52,999.937 in

February 2000

52,628 in

March1998

DVC DAMS AT A GLANCE:

Tilaiya Konar Maithon Panchet

Inauguration 21.02.1953 15.10.1955 27.09.1957 06.12.1959

Height above river bed (in

meter)

30.18 48.77 50.00 40.84

Length (in meter) 366 4535 4860 6777

Width of roadway (in meter) 3.81 5.79 6.78 10.67

Reservoir water spread (in sq.

km.)

59.57 25.90 106.19 152.81

Power generation capacity 2 X 2 MW 3 X 20 MW 2 X 40 MW

Storage Capacity: (in million

cu. m.)

To Dead storage

To Top of Gates

75.25

394.74

60.4

336.76

207.24

1361.84

182.57

1497.54

Allocation of Storage

Capacity: (in million cu. m.)


26

For Irrigation & Power

For Flood-Control

141.86

177.63

220.81

55.51

611.84

542.76

228.21

1086.76

Drainage Area (in sq. km.) 984.2 997.1 6293.17 10966.1

Reservoir: (in sq. km.)

At Dead Storage level

At River-Bed level

Area Top of Gates

363.3

345.9

58.08

410.6

382.2

25.09

132.6

106.7

107.23

119.5

97.5

152.97

Bond Highlights

Damodar Valley Corporation entered the Market for the first time in May 1970 and floated

SLR / PSU Bonds from time to time which partly financed on-going power expansion

programmes and other allied schemes. During these three decades since the year 1970, DVC

has an excellent track record of both servicing interest as well as redemption in time with

‘Zero’ default. DVC Bonds although un-rated yet enjoys a high level of investors’ confidence

in the market.

Details of the various Bond issues outstanding as on 01.04.2003 are as under:


27A.SLR Bonds:

Sl. No.

Floated In Tenure

Amount

(Rs. Crore)

Rate of Interest

Redeemable In

1. September 1988

20 Years 22.00 11.50%September 2008

2. December 1988

20 Years 23.00 11.50%December 2008

3. May 1989 20 Years 22.50 11.50% May 2009

4. September 1989


5. July 1990 20 Years 25.00 11.50% July 2010

6. September 1990


7. September 1991


8. December 1991

20 Years 25.00 12.00%December 2011

9. September 1992


10. November 1992

15 Years 11.53 13.00%November 2007

11. September 1994


12. September 1995


13. January 1996 10 Years 6.30 14.00% January 2006

14. September 1996


15. January 1997 10 Years 30.74 13.85% January 2007


2816. December

199710 Years 65.00 12.30%

December 2007

Total 440.00

B.PSU Bonds:

Sl. No.

Floated InAmount

(Rs. Crore)Rate of Interest Redeemable In

11. February 2000 56.00 12.00% - Taxable February 2005

12. January 2003 130.00 7.70% - Taxable January 2013

Total 186.00

ACHEIVEMENTS OF DVC:

BATTLING THE FLOOD:

The DVC Project has envisaged eight dams at Tilaiya, Maithon,

Balpahari, Bokaro, Panchet, Aiyee, and Bermo, but due to financial and other reasons the Govt.

approved the construction of only four dams at Tilaiya, Konar, Maithon, and Panchet.

All the DVC dams are located in upper valley. These dams absorb the flood flows and

help to control the floods by regulating the discharge of water from dams. Maithon and Panchet

have controlled a numbers of major floods in the lower valley.

Major Flood Control measures:

Recording of storm and rain forecast.

Data from ten gauge and discharge recording station all rainfall data of previous 24 Hrs.

ending at 08.30 AM are received and recorded at Maithon Control Room.


29 Discharge from reservoir is regulated as per reservoir regulation manual.

Flood warning is issued before and after discharge to the Civil Coal Mines authorities and

SDO.

IRRIGATION:

The DVC planned to extend the irrigation facilities to one million acres / 404,707

hectares including 2.2 Lakh acres / 0.89 Lakh hectares from the old Anderson vein and the Eden

Canal System in the district of Burdawan and Hoogly but due to various reasons the extension of

irrigation are as during 1977-78 was 8.03 Lakh hectares.

In the case of Rabi irrigation it was previously planned to irrigate 3 Lakh acres / 1.21

hectares during Rabi season but during 1977-78 water has been supplied to 1.62 Lakh hectares.

On the conservation estimate it can be claimed that annual crop value of Kharif and Rabi

irrigated in the DVC command area is less than Rs. 80/- Crores.

Chart of Irrigation:

Commencement of Work 1952

Inauguration 1955

Irrigation Command area across (Central) 3.64 Lac hectares.

Total Length of Canal System 1550 miles/204miles

Right bank main canal 55 miles/89 KM

Left Bank Irrigation cum Navigation canal 85 miles/137KM


30Number of Canal Structure 2141

SOIL CONSERVATION:

About 6 Lakh hectares of land spreading over Jharkhand and West

Bengal are effected by sever erosion. Aware of this situation the corporation has been working

since 1949-50 towards treating the eroded area. Different measures of small and selected over 56

priority watersheds.

Chart of soil conservation:

Nature of measure

Achievement

Total (in

Hectares)

Extent of work

up to 86-87

Achievement

up to 86-87

Recognize Area Soil Survey 18,00,000 12,45,822 69,21

Petailed Soil Survey 18,00,000 4,56,214 24,23

Afforestation 1,89,000 1,41,241 74,73

Up land treatment Extn. 2,75,000 1,48,526 54,00

Treatment of ruilled 1,25,000 1,06,252 85,00

Sediment Control Structure --- 6,804 ---


31FISHERY:

The fishery department was stated in 1950. The storage reservoirs of DVC have a total

Production Potential about 600 tones of fish per annum.

Activities during the year involved stoking, conservation and exploration of fish in the reservoirs

of DVC.

For reservoir fishery a total of 15.56 Lakh of EMC fingerlings was released in the different

reservoirs while total revenue of Rs. 7,74,738 was earned from the fishery license holders who

did the actual catching of fish in the reservoirs under the Fish Seed Hatchery Programmer

engineering works is in progress at Maithon and fish firms.

CROCODILE PROJECT:

The Crocodile Project of DVC at Tilaiya and Konar was taken up in the

year 1981–82. primarily at measures for development of tourism in the valley area to start with

30 Muggers of both sexes were produced and were released at Chacharo Iceland. Now

Crocodiles Palastriol are being maintained at Chacha Nehru Iceland Tilaiya mainly for the

purpose of conservation and tourism.

REHABILIATION:

DVC was committed to resettle 20,000 families who were displaced due to

construction of dams. The construction of Tilaiya dam alone displaced 40,339 families.

For resettlement people were given loan for land, houses or cash compensation according

to their choice. People of the locality got priority at the time of master roll and work charge

employment. In the construction phase most of the people were recruited from respective

localities.

For rehabilitation villagers near Tilaiya had been set up at Panchet Madho, Bacchai,

Signraw and Gauiri Kaama. DVC adopted two villages named Bhursabad in Giridih and

Layakdih in Puriliya under the Social Obligation Programme. The villages are benefited with


32amenities like electrification and water arrangement. The scheme had further been improved

with provision of distribution of books and sources of entertainment of local people.

SOCIAL INTEGRATION PROGRAM:

The DVC is not only about dams, power plants, irrigation

canals and navigation projects; it has a more human face as well, which embraces communities

and villages neighboring its projects.

D.V.C. spends around Rs. 1.5 Crore annually for its Social Integration Programme,

launched with aim of improving the quality of life of the people around its main projects.

Launched in 1982 with 25 villages, the programme now covers around 229 villages around the

main DVC projects and focuses on the following socio-economic activities.

1. EDUCATION:

Education programmes are being promoted through Non-formal and Adult

Education Centers with the DVC providing all necessary inputs. Rural libraries and community

centers have been set up to aid the literacy drive.

2. HEALTH:

Health and Family Welfare activities are being conducted by setting up homeopathic

dispensaries, mobile clinics and by organizing camps for mother-child care, pulse-polio

immunization, cancer-awareness, family welfare, etc. DVC is also constructing new village

health centers and dispensaries and renovating the existing ones.

3. INFRASTRUCTURAL DEVELOPMENT:

The D.V.C. has focused on improving the infrastructure

of the overall development of villages around its projects; bridges, drains and public toilets,


33setting up water-taps, and hand pumps, digging up new wells and renovating the old ones and

construction and renovation of school-buildings.

4. AGRICULTURAL ACTIVITIES:

To augment the yield from fields, the DVC has initiated micro-lift

irrigation programme, dug irrigation wells, constructed check dams, renovated ponds and trained

farmers.

5. TRAINING FOR INCOME GENERATION:

DVC trains people leaving around its projects in the

following vocations:

i. Sewing

ii. Knitting

iii. Embroidery

iv. Leaf plate making

v. Coon reeling

vi. Mushroom production

vii. Lac cultivation

viii. Food preservation etc.

6. RECREATION & CULTURAL ACTIVITIES:

To promote healthy recreation habits and cultural activities, a

number of youth clubs have been set up to organize sports and cultural activities.

FACILITIES AT DVC (B.T.P.S.)

1. Education Facilities :-


34There are following schools run by DVC for the children of the employees at BTPS &

local villagers, civil service establishments, Railways & others.

A) DVC +2 High School.

B) DVC M.E. School

C) Kendriya Vidyalaya

Apart from above, one Sr. Basic School, Carmel School, St. Paul’s Modern School,

Shanker Vidyalaya are allowed to run in the BTPS Colony. One college is also available.

School buses are provided to Pitts Modern School, Gomia, DAV, Kathara, Kendriya

Vidyalaya, Carmel School & St. Paul’s Modern School.

School fees are reimbursement at the prescribed rate of the Corporation to the employees

whose sons/daughters study in other schools outside BTPS including Pitts Modern School,

DAV Kathara, Carmel School etc.

As per provisions of the Corporation, Mid-day meal i.e. Biscuits are supplied by DVC to

the school children upto class VII in all the schools situated at BTPS except St. Paul’s Modern

School.

2. Reception Facilities :-

Following clubs are owned by DVC at BTPS

a) Station Club

b) Bokaro Club

c) Hindi Sahitya Parishad


35d) Urdu Mazlish

e) Welfare Centre

In the Welfare Centre, one library is available where different books, magazines, newspapers

etc. are available in different languages such as English, Hindi, Urdu and Bengali. Indoor

games and outdoor games facilities are available in the Welfare Centre. For facilitating the

employees who are on Shift duties, Welfare Centre is made available to them for which

Caretaker / Messenger / Safaiwale have been deputed.

3. Accommodation Facilities :-

Residential accommodation in DVC Type quarters and number of dormitories are available

for all the employees in BTPS Colony. Electricity & water supply is provided and

maintenance of the accommodation is made by Colony Civil Division including sanitation

and cleaning of the colony garbages etc. Upkeepment of the Forestry department of DVC

under local supervision. Several Parks and gardens are maintained.

One Community Centre beside the Welfare Centre is available for use in ceremonial occasion,

such as marriage ceremony or any other ceremonies. This is allotted to other service

organizations as well if available on nominal rent as prescribed by the Corporation.

4. Marketing Facilities :-

DVC has provided two market complexes, one old Market and other known as BTPS New

Market. Different shops such as Grocery, Garments, Tailors, Medicine, Barbers, Hotels &

Restaurants, Wheat Mill, Shoe-shop, Stationery, Press, Dry Cleaners etc. are available. Apart

from above provisions have been made for temporary stalls, fishermen, vegetable vendors etc.

beside the market complex including Butcher shops etc.

One permanent market complex is also available near the Railway Station.

5. Health Amenities :-


36One Hospital viz. DVC, BTPS Hospital is available for DVC employees as well as for others

in the community. Both Indoor and Outdoor facilities including Pathology, Radiology,

Surgery, regular vaccination facilities of Polio, DPT, Measles, TB sanatorium also available.

Ambulance facilities have also been provided in the hospital. In case of emergencies and in

case the patients had further treatment patients are referred and transported to other Hospital

such as Bokaro Steel City General Hospital and Ranchi R.M.C.H. etc. as & when required.

Family Welfare Camps are organized in the Hospital for Family planning and Health

awareness etc.

Time to time regular check-up of the employees who work on hazardous area in the plant

is being done and going to be arranged as statutory provisions.

For supplying medicines, the Hospital has its own arrangement. Besides, BTPS

employees Co-operative Medical Stores is available other than many other Medical Stores.

6. Sports Opportunities :-

There is very good training facilities for the employees and their children including local

village youth to undergo training under a National coach recruitment by DVC, There are

number of National level, State level, District level athletics at BTPS who are given training

in athletics at Central Football Ground regularly.

7. Hospital Diet :-

DVC provides Hospital diet to the patients belonging to Group ‘C’ & ‘D’ category of

employees regularly.


37

8. Canteen Facilities :-

There are two canteens for the employees of both BTPS ‘A’ and BTPS ‘B’ Plant.

9. Social Integration Programme :-

Several development schemes are undertaken and completed by DVC under its SIP

programme which covers all the surrounding villages around BTPS. In such programme Night

School for adult education, maintenance of village roads, construction of Bus Stop, Schools,

training facilities for knitting, stitching etc. rural sports, Hatchery, Piggery etc. are provided.

For this purpose one officer viz. Project Officer (SIP) is available to manage and supervise

these aspects. Sons & daughters of DVC employees also utilize the training facilities in

Knitting, Stitching and Tailoring under Project Officer (SIP). Number of development

schemes are met with under SIP from the separate fund allotted for this purpose by DVC.

10. Banking Facilities :-

The State Bank of India has its branch at BTPS Colony adjacent to Bokaro Club. The Bank

employee have been provided with DVC accommodation with facilities of water & electricity

and telephone etc.

11. Communication :-

Railway communication is available through Bokaro Thermal Railway Station (E. R.).

Passenger Trains and one Express Train communicates Gomoh – Barkakana line and Howrah

& Patna bound trains. Some privates Mini buses and Auto-rickshaws are also available to

communicate road journey.

12. Employees’ Grievance Redressal Cell :-


38There is a Grievance Redressal Cell at BTPS which is prompt in redressing the Grievances of

DVC employees for their welfare.

13. Security :-

DVC has its own security guards posted at different places at BTPS under supervision of one

Security Officer. The Security Office is located outside the plant. Moreover CISF post has

been made in the colony for patrolling. Local thana is available for Civil laws & order.

14. Machinery of Govt. Labour Department :-

One Asstt. Labour Commissioner is available with his office to act upon Labour matters and

maintaining assistance in Industrial Relations both to the Management and Labours & Trade

Unions.

In DVC plants, for both BTPS ‘A’ Plant & ‘B’ Plant at present three Labour & Welfare

Officers are posted as per statutory provisions to look after the aspects of Labour Welfare.

The above provisions of Welfare amenities excluding the fringes benefits provided to

employees such as LTA, Leave Encashment, different interest and non-interest bearing

advances & Conveyance allowances.

BOKARO THERMAL POWER STATON OF DVC:

Damodar Valley Corporation is the first public

sector undertaking in all common wealth countries of the world. It comes into existence on 7th

July 1948 by an act of parliament known as Damodar Valley Corporation Act 1948.

Bokaro Thermal Power Station has been situated in the heart of in the heart of coal belt

under Tenughat Subdivision of Bokaro district of Jharkhand. Geographically Bokaro Thermal

Power Station lies in the catchments are of Bokaro and Konar River both tributaries of Damodar

River.


39The construction of Bokaro Thermal Power Station was started in the year 1950 and

inaugurated 21st Feb 1953 by our first Prime Minister Pt. Jawahar Lal Nehru and dedicated to the

people of India. The original cost of Bokaro Thermal Power Station was 19.15 Crores and

installed capacity of generating thermal power was 247.5 MW.

Bokaro Thermal Power Station of DVC was not only biggest thermal power station in the

country but in the whole Asia in the early fifties as well as the best thermal power plant of DVC

which is the first public sector under taking in all the common wealth countries.

BOKARO THERMAL POWER STATION ‘A’ PLANT:

The construction of Bokaro Thermal

Power Station ‘A’ Plant was started in the year 1950. it consists of three (3) units wit installed

capacity of 55 MW of each and one 75 MW of one respectively. These were commissioned in

Feb 1953, August 1953, Oct. 1953 and April 1960 respectively. It is the first power station of the

corporation and once it was the biggest power station in whole Asia. Many great thermal power

station set engineers of the country either started their carriers here or got trained in this power

station. Manpower is 750 people. Now Bokaro Thermal Power Station ‘A’ Plant is closed due to

notice, which has been given by Pollution Control Board. It requires ESP (Electrostatic

Precipitator) to control smoke and dust, which polluted the environment.

BOKARO THERMAL POWER STATION ‘B’ PLANT :

It consists of three units of 210 MW.

First unit was commissioned on 1986. The second unit on 1990 and third unit on 1990. The total

area required by Bokaro Thermal Power Station in 1662 acres. It is situated on degree of 28-

degree latitude and 85.58 degree longitude.

GENERATION OF BTPS ‘B’ FROM JANUARY – 2005 TO AUGUST – 2005:


40DATE UNIT#1 GEN (MWH) UNIT#2 GEN (MWH) UNIT#3 GEN (MWH)

Jan. 05 58580 33600 98380

Feb. 05 104880 1740 73470

Mar. 05 122850 65170 91460

Apr. 05 93400 61000 46850

May 05 79800 51940 45870

Jun. 05 93820 79520 31430

Jul. 05 116540 71420 62860

Aug. 05 82390 56030 73020

STREANGTH OF EMPLOYEES IN BTPS:

Departme

nt

Gra

de A

Gra

de B

Gra

de C

Gra

de D

Con

trac

t

Tot

al

Gra

de A

Gra

de B

Gra

de C

Gra

de D

Con

trac

t

Tot

al

BTPS ‘A’ 69 351 139 559 17 186 71 03 75 352

BTPS ‘B’ 206 706 366 127

8

161 520 196 113 534 152

4

Sanction Strength Posted Strength


41HRD 10 45 16 71 09 32 10 04 55

Constructi

on

05 05 10 03 03 06

Civil-

colony

14 37 72 123 13 32 94 16 100 255

Stores 08 48 31 87 03 38 23 07 71

Security 01 02 01 04 02 02 04

Vigilance 01 01 02 01 01 02

Accounts 09 42 06 57 07 32 04 01 44

Finance 02 03 01 06 01 01 01 03

H. School 01 34 07 42 25 05 02 32

M. School 48 03 51 23 03 01 27

SIP 01 01 01 01

PRO 01 01 01 01

Off. Lang 01 02 03 01 02 03

Medical 18 42 33 93 17 38 16 12 11 94

Sub-process - “Material Management”:

Activities under material management can be listed as following:

1. Whenever there is some requirement of material, a Maintenance personnel (AE/EE/SDE)

has to check the availability of material in the Site Store / Main Store, and if it is


42available, the same is requisitioned in a proper Requisition Slip along with the required

quantity. If it is not available then an Indent is prepared and material procurement starts.

2. There are two types of stores:

Main Store

Site store for particular department.

3. Material Procurement

There are three types of Demand Notes:

Red – Imported Material

Yellow – Central Purchase Office (CPO)

Green – Local

Sub-process – “COAL MILLS”:

BTPS has three (3) units viz. Unit-1, Unit-2 and Unit-3 of capacity

210 MW. There are seven (7) Coal Mills/Unit (A, B, C, D, E, F and G). At any point of time two

(2) are kept standby. The activities in maintaining the Coal Mills are as following:

1. Planning and procurement of spares, tools, instruments and consumables.

2. Follow-up with suppliers for delivery of materials.

3. Inspection report for received materials.

4. Preparation of Work Order for jobs to be done by outside agency. This includes estimate,

proposal and approval.

5. Supervision and monitoring of AMC jobs and other contract jobs.

6. Scrutiny of offers from bidders and interaction regarding technical aspects.

7. Administrative work:

Attendance record, Leave record, etc.

8. Preparation of Budget Estimates.

9. Usually breakdown occurs in the following areas:

Gearbox.

PA Fans


43 Seal Air Fan

Coal Feeder

Coal Mill Loading System

Nozzles.

FINANCE DEPARTMENT

The activities under this department are:

1) This department is handled by JFA with the help of Jr. Stenographer and a Messenger.

The prime function of the JFA is to check and verify the financial viability of the

proposals forwarded by the Engineering & Technical Department of DVC.

2) The proposals are assessed for commercial viability with reference to the guidelines

given in the DFP.

3) On receipt of the case file concerning the proposal, it is checked as per the guidelines in

the DFP. If found essential, the JFA interact with the CE (Tech.) to clarify the

issues/doubts.

4) Final concurrence is given to the proposals on complete verification.

5) The JFA has to attend the tender opening bids (proposals/works), if called for.

6) No financial concurrence is required for proposals of less then Rs. 50,000/- value except

in the case of official equipment, stationary the limit is Rs. 15,000/-

7) The JFA is also member of various permanent and temporary committee set up by the

Project Head from time to time


44Permanent Committee

W&STC Level2

Survey Committee

Temporary Committee

Market Committee

School Committee

Investigation Committee

8) Copies of reports of various committees meeting are maintained in separate files.

9) A function of scrutinizing the BTPS budget with interaction of user section / technical

section lies with the finance and final adoption are being done at headquarter level. This

is an annual activity.

10) The JFA acts as an advisor to the Project Head in finance matters.

11) There is no specific library in the BTPS finance section but few books are kept for

reference purpose. If any confusion arise over any matter, they are sent to headquarter for

suggestion / finalization.


45

SOURCES AND UTILISATION OF FUNDS:

The sources of funds and utilization there of at the end of the last

three years are as shown as follows

(Rs. In Crore)

Particulars 2001-2002 2002-2003 2003-2004

SOURCES 151.04 151.04 1105.4

Loan Capital

Power Surplus & Retained Int. 818.06 954.34 428.93

Market Loan, Central Loan & Others 873.03 720.45 679.08

Internal Resources 1749.1 2035.61 2100.55

UTILIZATION 3591.23 3861.44 4313.96

Capital Expenditure


46

FINANCIAL POSITION :

The table below summarizes the important financial indications in

respect of the Corporation at the end of last three years:

(Rupee in Crore)

2001-02 2002-03 2003-04

Liabilities

a. Paid-up Capital 215 215 1234

b. Reserves and Surplus

i. Reserves 1581 1760 2328

ii. Surplus 266 360 406

c. Borrowing

i. Secured 41 37 82

ii. Unsecured 832 683 647

d. Provided fund and previous fund 410 442 473

e. Trade due and other current liabilities

i. Construction 49 48 45

ii. Operation 1953 2122 870

f. Provisions

i. On debtors for Power supply 60 81 209

ii. For Income Tax 108 228 554

5515 5976 6848


47

Assets

g. Fixed Assets 3550 3601 3696

h. Work-in-progress 197 442 806

i. Intangible Assets 1 2 2

j. Gross Block (g+h+I) 3748 4045 4504

k. Less Depreciation 1439 1652 1865

l. Net fixed assets (j-k) 2309 2393 2639

m. Provident & pension fund 410 442 473

n. Current Assets, Loan & Advances

I. Construction 57 39 19

II. Operation 2655 3000 3017

o. Investment 84 102 700

Total Assets (l+m+n+o) 5515 5976 6848

KEY FINANCIAL INDICATORParticulars 2001-02 2002-03 2003-04


48 Net Worth 1795 1973 3560

Capital Employed 2463 2260 3509

Return on capital employed - Power (Pre tax)-

(For current operation)-% 10.13 9.89 12.36

Return on capital employed – Power (post tax)

(For current operation)-% 7.93 7.23 9.96

Debt to Net worth ratio 0.48 0.36 0.19

Current Ratio 1.11 1.07 1.44

Quick Ratio 0.93 0.96 1.28

Notes:

i. ‘Capital Employed’ represents ‘Net Fixed Assets’ plus ‘Working Capital’ for operation.

Cash and bank balances have also been included under “Operation”. Capital employed

has been arrived at after taking into account ‘Revenue Accounts’ balance and ‘Provision

on Debtors’ for power supply and ‘Income Tax’.

‘Net worth’ represents ‘Paid-up’ plus ‘Reserve’ less ‘Intangible Assets’


49

OTHER FINANCIAL INFORMATION

Longterm Debt 679.09 720.45 873

STORE DEPARTMENT

The Store is headed by ACOS (Addition Controller Of Store). The activities of this department is

as following:

1. The moment any ‘Demand Note’ is received from User Section / Demanding Authority, the

activities of store starts.

2. The Store provide following information on ‘Demand Note’ / ‘Supporting Check Slip’:

Item description, with specification and Code No.

Moving average based on last three (3) years consumption.

Quantity on Order

Stock in Hand

Quantity to be Procured

2003-04 2002-03 2001-02

Contrn. By Participating Govt. 1233.86 214.72 214.72

Reserves 2328 1761 1581

Networth 3560 1973 1795

Longterm Debt 679.09 720.45 873.03


50 Last Purchase Order (PO) No. and Date.

Last PO Rate.

Last supplier’s name and address (if any)

3. Stores forward the demand to the demanding authority with the above information for filling

necessary entries their in by them and onward submission for initiating procurement action.

4. The demanding authority raises Indent to the purchasing authority in support to the ‘Demand

Note’ an ‘Check Slip’ to the Chief Purchasing Officer, in case of Central Purchase.

5. The purchasing authority floats enquiry / invite quotations for effecting procurement of the

item and sends respective purchase order to Stores.

6. The Store follows up the delivery of the material with the supplier so as to receive the item

within stipulated delivery period.

7. The supplier dispatches the material with the intimation to Stores with ‘Dispatch Details’ and

‘Consignment Note’ / ‘Railway Receipt’, enabling Stores to provide transit insurance

coverage, in case insurance is to be dealt by DVC as per the terms of the Purchase Order.

8. Store carries out routine Store Verification.

9. The Store has to keep regular liaison with Govt. Authority i.e. Commercial Tax Authority,

for Road Permit.

10. The Store has to keep regular liaison with the Explosive Department for license of HSD /

Petrol.

11. The Store has to keep regular liaison with the Weight & Measures Department for

certification of Weighting Machines.

12. The Store has to keep regular liaison with the Explosive Department for use of Industrial

Gases.

13. Store has to collect the blank Road Permit forms from the Commercial Tax Department, and

issue them to various suppliers for effecting delivery of material within the stipulated

delivery period.

14. Store has to collect the HSD within reasonable time-period ensuring uninterrupted working

of the User Section.


5115. Store receives the requisition against the HSD and MS from the User Section.

16. All requisitions are being recorded in the ledger / card and keep updated records on day-to-

day basis.

17. Store to cater the requirement of both BTPS ‘A’ and ‘B’ Plant, and has to keep overall

control over the activities.

18. The Store has to place requisition to the Maintenance Superintendent ‘A’ Plant and

Maintenance Superintendent-II ‘B’ Plant for trucks in order to collect materials from

transporter / railway / Gas Companies / Petrol Pumps etc.

19. The Store has to place requisition for Crane and Payloader for loading, unloading, shifting,

staking, re-staking of heavy materials at their respective places.

20. Store has to regularly undertake the vital job of reconciliation of account periodically with

M/S ICOL for their receptive supplies and amount paid to them.


M/S SAIL for their receptive supplies and amount paid to them.


Cement Companies for their receptive supplies and amount paid to them.

SWOT Analysis


52STRENGTHS:

DVC is the first multipurpose integrated river valley projects of

independent India. Its major strength of it is the special place, which it holds in the heart of

the people of Jharkhand and West Bengal. Since it is there for social welfare not for the profit

oriented view, it has a great hold on both the Central Government and the State Governments

of Jharkhand and West Bengal. The strengths of this “Public Ltd.” can be listed as below:

Strategically located in the rural area.

Well organized organizational structure.

Production of power at very low cost.

Location of each of its Power Plants, are such that, basic resources like “Coal” and

“Water” is available in abundant and at low cost.

Since DVC sells its product in bulk, so have a less number of customers, which gives

it an edge to deal with these customers.

It is providing several benefits to its employees, so it has ‘loyal’ employees.

DVC’s own transmission network.

Hydel power stations are one of the stronger part of DVC.

WEAKNESSES:

The weaknesses of this organization can be listed as following:

Most of the power generated by DVC is going to National Grid, where it has a less

control over its distribution.

Since DVC is giving power to the State Boards of Electricity of the State

Governments, like that of Jharkhand, Bihar, West Bengal and Orrisa. It some times

has face problems to collect the price of its product.


53 It is not gaining any profit from the supply of irrigation water.

DVC has to face communication problem, since its most of the Plants are located in

the rural area.

Unionization has the adverse effect on the smooth working of the organization.

OPPORTUNITY:

Following are the opportunities for DVC:

The need of electricity in our country is growing day by day, so DVC can grow in

future.

DVC has built a number of Dams, for the purpose of flood control. These dams can

be developed as tourist place (like Mejia).

DVC is looking for same kind of projects near by states like Orrisa and Madhya

Pradesh.

Due to good relation between our country and Bangladesh, it is looking forward to

sell its product in Bangladesh.

THREATS:

Following are the threats for DVC

Most of the production of power in DVC is from its Thermal Power Plants, and the

existence of coal is in threat.

Due to transportation of coal through road causes pollution from coal dust. Many

local social organizations are now protesting it.

Dams constructed by DVC for controlling the floods in the river Damodar, are now

threats to the environment.


54 A large number of potential competitors may enter into the market like ‘TATA’ and

‘Reliance’ ‘NTPC’, which may cause a problem for the organization.

Due to its high production cost, it may be difficult to get sanctioned the further

projects by the ‘Ministry of Power’ in the future.


55

PREFACE

Material management is an important element in production process. Materials represent a major expense in production process, so minimizing procurement or purchase costs represent important opportunities for reducing costs. Poor materials management is also result in hampering production process as well as increasing cost of materials. Again if materials are purchased early, capital may be tied up and interest charges incurred on the excess inventory of materials. On the other hand delays and extra expenses may be incurred if materials required for particular activities are not available. Accordingly insuring a timely flow of material is an important concern of the management.

To solve the above problem a proper management for material procurement can be set up by every organization with the aim of following objectives:-

Objective of materials procurement management:-

1) To insure procurement of right quantity right quantity of materials from right source at right place and time keeping transparency in contractual process.

2) To keep face with the charged scenario under the dynamic market condition liberalized economy, new technology and maintenance schedule.

3) To maintain proper co-ordination amongst contractors/suppliers /services providers and including department.

4) To prepare vendors profile as well as updating of vendor list depending upon the performance of the vendors and explore new entries in the fields.

5) To bring out economy and efficiency in implementation of the purchase project /work contract withier given time schedule.


566) To create competitive environment by providing opportunity to all

quantified eligible bidders to participate in the tendering process.7) To ensure the development of local vendors/ agencies and domestic

manufacturing industry.8) To explore import substitute without comparing quality & prices.

D.V.C, BTPS ‘B’ PROSPECTIVE

In DVC, BTPS ‘B’ yearly on an average Rs.150 crores of materials are procured except coal and LDO/FO Material procurement actions are guided by Works & Procurement Manual, 2009 and Delegation of Financial Power (DFP), 2009.Two section are mainly responsible for the above action viz SE (Technical) and Finance section. In SE (T) section, demands of user section are collected and processed for further action and in Finance section all the process are scrutinize and finalize through tender Committee Report of a procurement proposal.


57

Flow Chart for Procurement Action

Compliance receiver from Party

USER Section

Executive Non- Executive

Demand Placed by MS-I, MS-II, ES-I, ES-II, F&E, SE(C&I), SE (TG), SE (AHP), OS, etc.

Demand Placed by SE (C), Sr. ACAO, DGM, MS (Hospital) etc.

SE (Tech)

Preparation of QR (Through QR Committee)

Issue of Enquire (NIT)

Opening of Tender Documents

Preparation of CS (With reference to QR/NIT)

Placing the Files in TC for Report Preparation

Issue of letters to parties for Freezing deviation

Again placing the files before TC after freezing deviation


58

STEPS FOR MATERIAL PROCUREMENT

A) DEMAND NOTE : Demand Note prepared by the user section in the following format-

CHECK LIST OF A PURCHASE PROPOSAL(Placed & Prepared by User Section)

(Please tick the appropriate head)

Sl.No Matter Yes No

1. Indent for spares & consumable has approval of competent authority as par relevant DFP provision.

Yes No

2. Indent for capital item accompanied by a copy of sanction order for present of capital Item.

Yes No

3. Indent is placed in prescribed Form No. DVC IT-IB with all column duly filled in.

Yes No

4. Budget provision specifying head of expenditure for the year effecting payment delivery is confirmed.

Yes No

5. P.A.C/O.E.S. or O.E.M./Source standardization certificate is furnished by competent indenting authority for single tender procurement.

Yes No

6. B.U.S concurrent with the indent containing information on last 3 years consumption, stock position, pending indent & P.O. and rate & source of last purchase with P.O. reference, is furnished.

Yes No

7. Initial or first time procurement against replacement of spares & Yes No

TIA for acceptance/WSTC-II/,WSTC-I/,Secretary/CM/Board as per requirement as guided by W&PM/DFP Etc.

Placing of order by SE (T), SE(C), Sr. ACAO, MS and CE&PH after approval of competent authority.


59capital item should not be stated as “New Item” unless it was never put to use.

8. Ordering quantity fixed in excess of average annual consumption with due wieghtage on stock position, indent and P.O. in pipeline and procurement lead time is as per justification furnished by I.O.

Yes No

9. Indent for new item is properly justified by I.O. Yes No

10. Whether indigenous source development is explored in respect of import of spares or capital goods.

Yes No

11. Last purchase rate of overseas P.O. is given in foreign currency for a meaningful price comparison along with source of last supply.

Yes No

12. Expected residual life of the item proposed for purchase and presently under operation via-a-via prescribed life of the new one reasonably assessed and recorded.

Yes No

13. High value purchase proposal contain its utilization program, preferably within warranty period. Views of Director (Tech.) on this score obtained.

Yes No

14. Proposal for procurement of improved version over the existing one is properly justified with reference to its optimum utilization and cost benefit aspect and availability of trained man-power.

Yes No

15. Exact technical specification matched with requirement of user section for computers and other product where technology is fast changing is settled before issuance of NIT and recommended offer strictly in conformity with NIT is confirmed.

Yes No

16. Recommendation as to technical acceptance of offer obtained from I.O.

Yes No

17. Price reasonability of single offer on PAC / OEM basis is analyzed and commented upon.

Yes No

18. Purchase proposal is placed after settlement of all deviation in techno commercial part of the offer.

Yes No


6019. Availability of surplus stock in other projects is checked and

considered in fixing the ordering quantity.Yes No

20. In case of L.T.E. updated vendor base is considered. Yes No

21. Vender behavior is duly considered in recommendation for waiver deposit and L /D clause.

Yes No

22. Price implication of commercial terms & conditions of all the offers are evaluated on equal platform and considered in the comparative statement.

Yes No

B) Pre- enquiry activities:-

Pre-enquiry activities would only start after the receipt of indent/proposal of work complete in all respects. After receipt of indent /proposal of work complete in all respects.

After receipt of indent/proposal along with all formalities and details as steps are to be taken or settled before tendering:-

a) Set right of any deficiency in the indent proposal.b) Creation of a file with the indent proposal documents with file number.c) Selecting the mode of tendering.d) Fixing the qualifying requirements if required, for the indent/proposal.e) Fixing the cost of tender documents.f) Fixing the amount of earnest money.g) Finalizing the enquiry details for advertisement in newspaper and

website for open tendering.h) Preparation of tender document sets.


61

C) Qualifying requirements (Q.R):-

(i) Formation of QR

The purpose of QR is to identify the qualified bidders who are capable of delivering goods/services as per the specifications /requirements .QR shall generally be drawn in such a manner so as to enable adequate participation of bidders to the extent possible. The QR shall normally include technical requirements (both specified to the package and general) and the financial requirements.QR for technical and financial parameter should be clearly spelt out. In order to finalize the QR of prospective bidders, a standing QR

Committee has to be formed at projects/stations/field formation with representatives of TIA (Tender Inviting Authority) of Finance and user’s section /indenting department.

For procurement up to departmental estimates (DE) of Rs.5 lakh QR to be decided by TIA (if any).

For procurement with DE above Rs.5 lakhs QR need to be formed by the QR Committee and an ideal QR should comprises the following points:-1) Bidders must be manufacturer/authorized dealer/supplier of the

tendered item.2) The Bidders should furnish a list of purchase orders of similar

items for past supplies of at least 3 years from the date of NIT to SEB/Govt. /Semi Govt./PSU/Other Reputed organizations.

3) The bidders must have experience of successfully execution for supplying similar items as mentioned by the indenter to SEB/Govt./Semi-Govt./PSU other reputed organizations during last 05 years from the date of NIT and should also covering the following points:-

a) One similar completed purchase orders costing not less than the amount equal to 70% of the estimated cost or

b) Two similar completed purchase orders each costing not less than the amount equal to 40% of the estimated cost or


62c) Three similar completed purchase orders each costing not

less than the amount equal to 30% of the estimated cost.

* Similar supply means successful execution of orders for supply of indented item to SEB/Govt./Semi Govt./PSU/other reputed organizations. Bidders will have to furnish self certified photo copy /copies of PO/PO(s) together with proof of execution i.e. execution certificate of the furnished orders of documents like transporters challan and inspection certificate containing dispatch clearance, excise invoice etc. in respect of the furnished orders which can show the execution of the same for compliance of qualifying requirements.

D) The bidder should have adequate testing facilities as per relevant IS for such Items.

E) A copy of valid sales tax registration certificate / VAT registration certificate as applicable.

F) Company registration, article of association, proprietorship or partnership deed, if any, of the case may be.

G) Manufacturing license / Certificate from competent authority regarding manufacturing of indented items.

H) Audited annual accounts report of preceding three years for determination of working capital position, overall profitability, debt equity ratio, average annual turnover (AAT) etc.

I) Average annual turnover during last three years ending 31st

march of the previous year should be at least 30% of the total estimated cost of the supply package.

J) A certificate from banker (other than Co-operative and Rural Bank) of the tenderer on financial soundness.

K) A tolerance limit of 5% on the quantum of QR will be provided to take care of the marginal shortfall.


63 L) The indenting bidders must enclose the documentary evidence authenticated by the bidder with seal in support of fulfillment of qualifying requirement, as fixed above, along with their offer failing which their offer may not be considered.

(ii) Determination of amount of Cost of tender paper and earnest money deposit [E.M.D]:-

A) Amount of E.M.D = 2% of the D.E.

B) Cost of tender paper

SL NO. Amount of Departmental Estimate (Rs) Cost of Tender Paper(Rs)1 Up to Rs.1000000 to Rs. 2500000 Rs.3002 Rs.2500000 to Rs. 5000000 Rs.5003 Rs.5000000 to Rs. 10000000 Rs.7504 Rs.10000000 to Rs. 20000000 Rs.15005 Above Rs. 20000000 Rs.3000

(iii) Modes of Submission of Tender:-

It should also decided by the Q.R. Committee generally procurement process, should followed single stage bidding with 3 envelope mode Procurement process should follow single stage bidding with three Envelope modes.

1. For Single Stage three Envelope Tendering the main envelope containing the offer should contain three small Envelope, viz A, B, C, with proper super scribing.

Envelope ’A’:-

Having the earnest money [if applicable] and cost of tender paper.[If downloaded from website]

Envelope ’B’:-

Contains techno - commercial part with necessary credentials & deviation


64 schedule.(if any).

Envelope ‘C’:-

Having Price part as per format enclosed in the bid document alone with the cost of Withdrawal prices for declared deviations.

D) PRE-BID CONFERENCE FOR SINGLE STAGE BIDDING: (IF DESIRED BY THE TENDER INVITING AUTHORITY):

This is to be followed for open LTE of estimated value more than Rs.25 lakhs at the discretion of Tender Inviting Authority . if approved , the detailed programme on pre- bid conference should be clearly mentioned in NIT documents.

It is also suggested for those NIT where the numbers of participating bidders are less than three, pre –bid discussion may be held with bidders individually to obviate the possibility of cartel formation. The Bidder or his authorized representative to be invited to attend pre-bid conference before submitting the offer which will take place within Seven (7) days after sale closing of tender papers at the following address.

( Name & Address of the Owner )

The pre-bid conference shall be arranged on (date, month, year) at …………………… (Time).

The purpose of the conference will be to clarify any issues regarding the bidding documents in general and the technical specifications in particular and for quick disposal of the NIT.

Non – Attendance at the pre-bid conference will not be a cause for disqualification of a bidder.


65 Any modification of basic technical specifications / commercial terms & conditions of the bidding documents as a result of pre- bid conference in case of limited tender enquiry will be circulated amongst the bidder’s through the record note of pre-bid conference by sending letter, Fax, E-mail.

(E) FORMAT OF APPROVAL FOR INVITATION & OPENING OF TENDER:

(Fill up by the competent authority of SE (Tech) Section)

Sl No Particulars Remarks

1.

Material Head (Either Spare Items or Stores items or Tools or Plant & Machinery or Other Assets

2.Name & Description of Indented item

3.Name of Indenting Section

4.Demand No. & Date

5.Placed by

6.Justification for the Proposal

7.Mode of Tendering (LTE/Open)

8.Estimated Cost

9.Basis of Estimate (As per previous PO/Budgetary Offer)

10.Financial Power

11.Budget Provision


66

12.DFP Sl No.

13.Name of Venders for LTE

14.Recommendation of QR Committee

15.Name of Tender Committee members

16. Approval of CE/DyCE/SE (Signature & date)

(F) FORMAT FOR NIT/ENQUIRY


BOKARO THERMAL POWER STATION (O & M)P.O.:- BOKARO THERMAL, DIST – BOKARO

PIN – 829 107 (JHARKHAND)TELEPHONE – 06549-266265

FAX:- 06549-266701

Enquiry no. Date:

Name & Address of Vendors[In case of limited tender]

Subject of NIT:- Procurement of ---------------------------------------------------------------------

Dear Sir,


67Sealed quotation (In duplicate) is invited from the suppliers for under

noted items with full specification, description; literature [if available] and make should be clearly mentioned.

Please send your quotation in single stage & single envelope mode [previously described] to the S.E. [Tech.] DVC, Bokaro ‘B’ Thermal Power Station………………..……………………………………… on, before due date and time of opening.

i) Due Date and time of opening.

ii) Specification of material:-

Sl. No. Description of Material Qty. Price

iii) TERMS AND CONDITIONS OF NIT:-

1. Offer must be submitted in English language only.2. You should submit your offer at the earliest in single stage & single

envelop mode i.e. offer is to be placed under a common envelop supers can being Enquiry No and due date of opening etc.

3. Please quote your rate in words & figures both. If there is a discrepancy between words and figure, the amount in words will prevail. If there is discrepancy in unit rate and subtotal price


68obtained by multiplying unit rate with the quantity or between subtotal and total price the unit rate and subtotal price will prevail.

4. There should not be any marks of erasers. Alteration, if any, shall be initiated with date by the person signing on behalf of the tender. Every attempt should be taken to avoid any cutting/over-writing .Preferably, offer is to be submitted in neatly typed/computer printed format to avoid any confusion/ambiguity in the quoted rates/terms and conditions .Any cutting/overwriting/use of eraser etc. Offer should be authenticated by the bidders. No process escalation will be entertained.

5. Normally price revision by the bidder will be entertained.6. Conditional discount will not be considered for bid evaluation.

However, if the offer becomes L-1 offer DVC may accept discount while placing the order. Complete information on all the points as asked for in the inquiry should be given in the offer.

7. Quotation received after due date may not be considered. If you submit more than one offer against the NIQ within the due date, the latest offer received against the NIQ at this office may only be taken into consideration.

8. Firm delivery period/delivery schedule must be mentioned in the quotation which may be one of the main points of consideration.

9. The successful tenderer has to advise the consignee be Fax message regarding dispatch of materials in addition to sending R/E by Registered post.

10. Validity: Validity of the offer should be 90 days from the date of opening of the tender.

11. Price should be quoted in Indian Rupees (INR) only.12. Price: The rates quoted by you should be on firm price basis

excluding Sales Tax, Excise Duty, Octroi Surcharge, TOT etc. If this is not done your quotation will be deemed to be inclusive of all taxes, duties etc .price should be quoted for FOR – BTPS basis including P&F charge, if any. However, specific quantum of Freight & insurance charges, if any, to be spelt out clearly .Bids will be evaluated on total landed price FOR-BTPS basis.

13. In case the offer of the manufacturer is exclusive of taxes and duties as applicable, the same are to be specified in an explicit way.


6914. DVC reserves the rights the right not to accept the rates offered

by you and to reject the offer without assigning any reason thereof.15. Please furnish your e-mail No., Contact No. , Fax No. Tax

identification No. and details of your banker & bank account no. Please also mention the name of the contact persons with their contact nos. , e-mail ID etc. Who may be contacted for queries related to the subject procurement?

16. Liquidated Damage Clause : The time/the date of delivery of the stores stipulated in the order shall be deemed to be the essence of the contact. In case of any delay attributed to the party in execution of supply beyond the stipulated date of delivery period/delivery schedule including any extension thereof per mitted in writing, the owner reserves the right to recover from the vendor, a sum equivalent to 0.5% of the value of the delayed materials for each week of delayed and part there of subject to maximum of 5% of the total value of the order as LD. OR Alternatively, DVC reserves the right to get the supply executed from elsewhere at the sole risk and cost of the vender and recover all such extra costs incurred by DVC in getting the supply by the above Procedure OR Alternatively, DVC may cancel the Order/Contract completely or partly without prejudice to their right under the alternatives mentioned above.

In the event of recourse to alternatives as above, DVC will have the right to re-purchase the spares from other agency, to meet urgency in requirement caused by your failure to comply with the schedule of delivery period? LD ones deducted will not be refunded.

17. Payment term: 100% payment along with full taxes & duties will normally be made through A/C payee Cheque normally within 15 working days from the date of receipt of material at site and after inspection & acceptance thereof or from date receipt of Invoice whichever is latter. However, payment terms for P.O. to be placed on manufacturer directly, may be as follow in specific cases: 90% of the ordered value against dispatch documents through Bank subject to prior acceptance of SDBG, if applicable. Balance 10% of the ordered value to be paid after receipt of material at site and acceptance thereof. Acceptance of bank charges must be indicated under the same.


7018. Security Deposit Cum Performance Guarantee .U will be

required to furnish Security Deposit within 30 days from the date of placement of order , for an amount equivalent to 10% of the total order value against satisfactory execution cum performance guarantee of the materials. Security Deposit will remain valid for 06 months from the date of supply i.e. receipt of material at site, against any manufacturing defect /poor workmanship/poor performance and in case any deficiencies are found during the period the same shall be rectified/repaired/replaced free of cost as per the direction & satisfaction of Officer-in-charge. Security deposit is to be furnished in any one of the following modes.a) For order value up to Rupees Five lacs, security deposit may not be applicable, if payment is accepted after receipt & acceptance of materials at our site.b) For order value above Rs. 5.lacs, security deposit is acceptable in the form of Bank Guarantee (as per DVC’s format) issued from any Nationalized /Scheduled Rural Bank) with initial validity of 06 months from the date of execution of Bank Guarantee with claim period option is three months thereafter. The validity of the submitted BG may have to be extended suitably to cover the entire guaranty period with claim period of 03 months thereafter. The BG may be accepted after needful verification of the same from the appropriate authority.c) If no option is exercised by the quotationer, security deposit clause will be imposed as fit.d) SSI Units registered with NSIC, under its single point registration scheme, are exempted from depositing of security deposit for ordering value up to be monetary limit for which the units is registered. SSI Units seeking such exemption must enclose valid registration certificate from appropriate Govt. Authority giving details such as validity, stores, monetary, limit etc failing which exemption will not be granted.However, these SSI Units will have to submit Performance Guarantee for the materials. No payment will be made without acceptance & submission of security deposit.


7119. You should accept LD &SD clauses. If nothing is explicitly

mentioned in the offer, it will be assumed that all the terms conditions stated in the enquiry including LD & SD clauses are acceptable to you.

20. The scope of order may increase/decrease depending upon the actual site requirement at the time of order.

21. Offer submitted through FAX/e-mail may not be accepted.22. Unsolicited/unsigned/conditional/ambiguous offers with regards

to essentials may not be considered valid. 23. In sending your quotation you will be deemed to have read

understood and accepted the tender and conditions stated in the Enquiry.DVC reserves the right not to accept the rate quoted by you and reject offer should assigning any reason thereof.

24. Goods supplied will always be subject to our inspection and approval on arrival at destination in good conditions.

25. Tenders are to send their specific regret in case of none-participating in the NIQ.

26.Compliance of Regulations: You shall warrant that all services by you against this order /Contract shall have been competed in strict compliance with all applicable laws, regulations working conditions including industries (Development & Regulations) Act, 1951 & Industrial Dispute Act, 1947 and any amendments requirement as applicable from there to time.

All laws, rules and regulations required to be followed in execution of the order /Contract, must be compiled with you will execute and deliver such documents as may be needed by DVC in evidence of compliance. Any liability arising out of contravention of any of the laws of executing this order shall be your sole responsibility and DVC shall not be responsible in any manner whatsoever.

27.All suits arising out of the enquiry or LOI/LOA/order, if any, are subject to jurisdiction of the court of law in the city of Kolkata when resolution/settlement through natural discussion /arbitration fails.28. Force Majeure : Supplier shall not be considered in default if delay

in delivery occurs due to causes beyond his control such as acts of God, natural climate, civil wars, fire, frost, floods, riot and acts of


72unsurpassed power. Only those clauses shall be considered the cause of force/calendar majeure which have duration of more than seven days. A notification to this effect duly certified by the statutory authorities shall be given by the supplier to the owner within ten days from the date of such force Majeure condition by registered post. In the event of delay due to such causes, the delivery schedule will be extended for a length of time equal to the period of force majeure at the option of the Owner the order may be cancelled. Such cancellation would be without any liability whatsoever on the part of the owner. In the event of such cancellation, the supplier shall refund any amount advanced or paid to the supplier by the Purchaser and deliver back any materials issued to him by the Purchaser and release facilities, if any provided by the Purchaser.

29. Cancellation/Short Closure: The Owner may terminate/short close the contract, by not less than 30 days’ written notice to you, to be given after occurrence of any of the events specified in the Sl. No. (a) to (e) of this clause and 60 days in the case of event referred to Sl. No. (f). (g) & (h) below. a) The Vendor fails to comply with any of the terms of the Order or the

bidder do not remedy a failure in the performance of their obligations under the contract, within 30 days after being notified or within any further period as the Owner may have subsequently approved in writing.

b) The Vendor becomes bankrupt or goes into liquidation.c) If as a result of Force r, the bidder is unable to supply materials for

a period of not less than 60 days.d) If the Bidder, in the judgement of the Owner has engaged in corrupt

or fraudulent practices in competing or in executing the Contract. For the purpose of this clause.

e) “Corrupt Practice” means the offering, giving, receiving or soliciting of anything of value to influence the action of a public official in the selection processes or in contract execution.

f) “Fraudulent Practice” means a misrepresentation of acts in order to influence a selection processes or the execution of a Contract to the detriment of the Owner.


73g) The Vendor is otherwise precluded from complying with any of the

terms of the order on account of any directives of any lawful authority.

h) If the Owner, at its sold discretion, decides to terminate this contract.

Yours faithfully,

SUPERINTENDING ENGINEER (TECH)

DVC, BTPS ‘B’, Bokaro

Copy to The chief Engineer DVC, BTPS ‘B’ Bokaro Thermal. The Dy. Chief Engineer (M/M), DVC BTPS ‘B’ (O&M). The ACS, DVC, BTPS, Demand No.------ The JFA, DVC, BTPS.

(G) Tender Opening:-

Tender will be opened on the due date and time indicated in the NIT. The authorized representatives of the bidders may remain present during tender opening.


74Each tender to be numbered serially, initialed and the prices

along with the important terms and conditions like earnest money deposit, performance bank guarantee, discount, if any etc. should be encircled and initialed.

Alternations in tenders, if any made by the bidders shall be initialed legibly to make it perfectly clear that such alternations were present on the tenders at the time of opening. Whenever any erasing or cutting is observed in the tenders., the substituted words should be encircled and initialed and the fact that such erasing / cutting of the original entry was present on the tender at the time of opening be also recorded. After opening of the tender, the tending opening officer / committee should prepare an “ On the Spot , Statement” giving details of the quotations received and other, particulars like prices, taxes, duties and EMD etc.as read out during the opening of the tenders. In case the tenders / bidder fail to quote the rate in the words or in figure, the omission should be recorded by the officer’s opening the tender and in case the tenders / bidders failed to write the rate/price in words, must be written and attested by the members of the tender opening committee.

In’ Two Part Bid’ where price bid are supported to be submitted in a separate sealed envelope by the tenderer, if any price component related to subject NIT in full or, in part is exposed and found with its techno commercial offers, these offers are to be out rightly rejected and will not considered further as the submitted tender is not as per the terms of NIT.

In case of “Two Part of Bid” system, the price bid part of the tender should be kept separately and all the envelopes containing the price bids must be signed not only by the members of the tender opening committee but also by the tenderer’s


75representatives, present during the opening. Thereafter, all the envelopes containing the price bids should be put in a bigger envelope and the same should be sealed and duly signed by the officer’s of the tender opening committee and tenderer’s / bidder’s representatives with name, designation and date.

A tender opening register shall be maintained in the representatives departmental in a printed format containing information, mentioned above including the date of opening, expansion of date, if any, names designation and signatures of all the persons present during opening. The bidder’s representatives who are present shall also sign endorsing their attendance.

(H) COMPARATIVE STATEMENT


76 Case File No-

Sl.No

Item Description Qty. P1 P2 P3 L1

DE &Date Of

PurchaseVariation(%)

1 Basic price

2 Packing & forwarded

3 CST & VAT

4 Freight

5 Insurance

6 Other expenses(if any)

7 Inspection charges

8 Landed Price ... ... ... ... ...... .....

(L1 bidder is the lowest bidder among all)

others Terms & condition :-

Sl No. Particulars P1 P2 P3

1Delivery Schedule :-

-

1. PG Clause:-

2. LD Clause:-

3. SD Clause:-

4. Other terms & condition

of NIT

2Validity of the offer :

TIN /VAT No :-

FOR:


77

Checked by: - Prepared by:-

(Member of finance section) (Member of SE (Tech.) section)

(I) PREPARATION OF MINUTES OF TENDER COMMITTEE


78

After preparation of comparative statement tender committee report prepared by the

finance section for issuance of purchase order. Minutes of Tender Committee is basically

the summary of the procurement proposal & depicts all the matter of a purchase proposal.

Draft format for tender committee report is listed below:-

Minutes of meeting of the tender committee held on ...................................

for procurement of ..........................................................................................

1.Proposal of user’s section vide no. ............................................

2. JUSTIFICATION FOR PROCUREMENT:-

2. NIT No: - .....................................................................................

3. Offer of the firm’s:

A) M/S ....................................................................

B) M/S .....................................................................

C) M/S .......................................................................

4. Comparative statement.

5. Departmental estimates (D.E)

NIQ & OFFERS:-

With the approval of the competent authority and open / limited NIT in single stage two

bid note three envelope mode was floated through press , advertisement & insertion in

websites for supply of ......................................items.

In response of NIT,......................nos. of offers have been received and opened

on dated.................................... .


793. Technical accepts ability of the offers. All offers are found technically accepted to the user’s section.

* Q. R. Compliances :All offers are QR complied to the members of QR committee.

* Rate reasonability

* Payment terms

* Delivery period

* LD & SD clause

Performance guarantee clause

* Interchangeability / fitment certificate.

* PDI [ Pre Dispatch Inspection]

* Financial Power:-Guided by DFP [Delegation of Financial power 2009]

* Availability of Fund:-Fund must be available in appropriate budgeting.

* Recommendation of Tender Committee:-

In of the above the tender committee unanimously recommends for placement of purchase order on M/s ………………………….. for the total amount of Rs. ……………………… [Amount in words also] only exclusive taxes, freight etc. for – destination basis.

Submitted to:-

C.E. / Dy. C.E. / S.E. for his kind approval for the placement of purchase order.

_________________ _________________ _________________

Member Member Member

of user’s section of Technical Section of Finance section


80 (J) FORMAT OF PURCHASE ORDER


BOKARO ‘B’ THERMAL POWER STATION (O&M)

P.O. – BOKARO (JHARKHAND)

PIN - 829107

(BY SPEED POST)

PO. No. BT/B (O&M)/T/10-11/SC/ Dated...........

To,

M/s..................................................................

Address..........................................................

.......................................................................

.......................................................................

Sub: PROCUREMENT OF..................................................................................

Ref: -

1. Offer No. .........................................2. Letter No. ........................................

Dear Sir (s)

With reference to above, DAMODAR VALLEY CORPORATION is pleased to place order on you to deliver the following items at the rate and the terms and the conditions given below.

Sl No. Description Qty.(In no.) Unit Rate (in Rs.)

Amount (in Rs.)

1. - - -2. - - -

Tel- Fax No:Fax No.


813. - - -

Total - - - Rupees (in the word).........................

TERMS & CONDITION

1. Price basis: - The above prices are FOR BTPS, B-DVC basis exclusive of excise duty on production of documentary evidence.

2. VAT / CST: - will be paid extra as applicable on production of documentary evidence.

3. Delivery: - within two months from the date of P.O.4. Mode of payment: -Material is securely packed conditions should be

delivered to the consignee.5. Payment: -100% Payment will be made after receipt & acceptance of

materials at site. Please submit original bill to the Sr. Addln. Chief Account Officers, DVC, BTPS along with all necessary documents for payment – a set of the same should be sent the consignee.

6. Consignee: Controller of Stores, DVC, BTPS-B.7. LD Clause: As mentioned in the Enquiry/NIT.8. SD Clause: As mentioned in the Enquiry/NIT.9. Force Measure Clause: As mentioned in the Enquiry/NIT.10.Risk Purchase Clause: As mentioned in the Enquiry/NIT.11.Transit Insurance: To be borne by DVC under Mega Insurance Policy.12.Termination of the contract: DVC reserves the right to cancellation of

the contract at any time without giving prior notice.


82


83

PROCUREMENT OF CONSUMABLE ITEMS FOR COAL MILL, DVC, BTPS’B’

Check list for Purchase Proposals

Demand No. : CM/2010-11/10 dated 11.02.10Section: Operation Suptd.Description of materials: Consumables items for Coal Mills


84

Sl.No Matter Yes No

1. Indent for spares & consumable has approval of competent authority as par relevant DFP provision.

√Yes No

2. Indent for capital item accompanied by a copy of sanction order for present of capital Item.

Yes √No

3. Indent is placed in prescribed Form No. DVC IT-IB with all column duly filled in.

√Yes No

4. Budget provision specifying head of expenditure for the year effecting payment delivery is confirmed.

√Yes No

5. P.A.C/O.E.S. or O.E.M./Source standardization certificate is furnished by competent indenting authority for single tender procurement.

Yes √No

6. B.U.S concurrent with the indent containing information on last 3 years consumption, stock position, pending indent & P.O. and rate & source of last purchase with P.O. reference, is furnished.

√Yes No

7. Initial or first time procurement against replacement of spares & capital item should not be stated as “New Item” unless it was never put to use.

Yes √No

8. Ordering quantity fixed in excess of average annual consumption with due wieghtage on stock position, indent and P.O. in pipeline and procurement lead time is as per justification furnished by I.O.

√Yes No

9. Indent for new item is properly justified by I.O. Yes √No

10. Whether indigenous source development is explored in respect of import of spares or capital goods.

√Yes No

11. Last purchase rate of overseas P.O. is given in foreign currency for a meaningful price comparison along with source of last supply.

\

Yes √No

12. Expected residual life of the item proposed for purchase and √Yes No


85presently under operation via-a-via prescribed life of the new one reasonably assessed and recorded.

13. High value purchase proposal contain its utilization program, preferably within warranty period. Views of Director (Tech.) on this score obtained.

Yes √No

14. Proposal for procurement of improved version over the existing one is properly justified with reference to its optimum utilization and cost benefit aspect and availability of trained man-power.

Yes √No

15. Exact technical specification matched with requirement of user section for computers and other product where technology is fast changing is settled before issuance of NIT and recommended offer strictly in conformity with NIT is confirmed.

√Yes No

16. Recommendation as to technical acceptance of offer obtained from I.O.

√Yes No

17. Price reasonability of single offer on PAC / OEM basis is analyzed and commented upon.

Yes √No

18. Purchase proposal is placed after settlement of all deviation in techno commercial part of the offer.

√Yes No

19. Availability of surplus stock in other projects is checked and considered in fixing the ordering quantity.

√Yes No

20. In case of L.T.E. updated vendor base is considered. √Yes No

21. Vender behavior is duly considered in recommendation for waiver deposit and L /D clause.

Yes √No

22. Price implication of commercial terms & conditions of all the offers are evaluated on equal platform and considered in the comparative statement.

√Yes No


86

DEMAND NOTE FOR MATERIAL PROCUREMENT

Code/Demand No with Date: CM/2010-11/10 dated 11.02.10 Name of item: Consumables items for Coal Mills

Sl No.

Material Description QUANTITIES RATE

Stock in hand

Moving Average

To be procured

Estimated rate as per Last Purchase Price/Kg

Year of LPP

01 AsbestosRope;style:1000, make: Champion(i) Size:03mm NIL NIL 50kg 195=00 09/04/0

8(ii) Size:06mm NIL NIL 50kg 520=00 24/08/0

9iii)Size:08mm NIL NIL 50kg 520=00 24/08/0

9iv)Size:20mm NIL NIL 20kg 415=00 24/08/0

9v)Size:24mm NIL NIL 25kg 240=00 09/04/0

802 AsbestoTape.

Size:50*05mm,make:Champion

NIL 05kg 25kg 360=00 11/05/09

03 AsbestosCloth,Size:03mm,make Champion

79/kg

276/KG

100kg 290=00 24/08/09

Delivery period: Within3-4 months


87Prepared & signed by Sectional Head of User Section

JUSTIFICATION SHEET

Sub: Procurement of Consumables items for Coal Mills

Asbestos rope of sizes 3mm & 8mm are regularly used in Coal Mills to arrest coal dust leakages from Coal Mill & PA Fan doors . Asbestos rope of size 20mm & 24mm are used during repairing of loading assembly as gland packing.

Asbestos tape of size 15X5mm is used during overhauling of coal feeders & running maintenance job in feeder door to arrest coal dust leakages & proper tightness of doors.

Asbestos cloath of size 3mm is impeded between guard & wire net of PA Fan bearing to protect bearing from hot air.

In the year 2010, 5-6 nos. of Coal Mill & some feeders overhauling are due during overhauling of coal mill & feeders the rate of consumption of rope & tape will be more.

Quantities of these material are required as per our requirement for at least 6-7 months. Necessary approval may kindly be accorded for:

(a) Procurement on LTE basis under DFP 10.1(ii). (B) Procurement of Quantity above the more then moving average.

Estimated value= Rs 1,14,050.


88

Name of firm for LTE:-(1) M/s FGH , Bokaro Thermal.(2) M/S R.S Industries, Gomia.(3) M/S Sri RAM Engineering ,B.S CITY.(4) M/S Unique enterpreses ,W.B(5) M/S A.B Enterprises ,Gomia.(6) M/S Hard mart, BOKERO Thermal.

Approved for procurement above Moving Average.

Signed by : Head of user section & Dy.chief.

FORMAT OF APPROVAL FOR INVITATION & OPENING OF TENDER:

(Fill up by the competent authority of SE (Tech) Section)

Sl No Particulars Remarks

1.

Material Head (Either Spare Items or Stores items or Tools or Plant & Machinery or Other Assets

Spares

2.Name & Description of Indented item Consumables items for

Coal Mills

3.Name of Indenting Section Coal Mill

4.Demand No. & Date CM/2010-11/10 dated

11.02.10

5.Placed by Operation Suptd.

6.Justification for the Proposal Extra note sheet attached

7.Mode of Tendering (LTE/Open) Limited

8.Estimated Cost 114050.00


89

9.Basis of Estimate (As per previous PO/Budgetary Offer)

LPP

10.Financial Power Operation Suptd

11.Budget Provision BE 2010-11

12.DFP Sl No. 10.1(ii) of GS-09

13.Name of Venders for LTE As per Justification sheet

14.Recommendation of QR Committee Not required

15.Name of Tender Committee members Member of Finance, SE(T),

Indenter.16. Approval of CE/DyCE/SE (Signature &

date)Approved

(F) FORMAT FOR NIT/ENQUIRY


BOKARO THERMAL POWER STATION (O & M)P.O.:- BOKARO THERMAL, DIST – BOKARO

PIN – 829 107 (JHARKHAND)TELEPHONE – 06549-266265

FAX:- 06549-266701

Enquiry no. BT/B(O&M)/T/10-11/SC/CM/OS/MS-I/2066/E-80 Date: 27/04/2010

Name & Address of Vendors(1) M/s FGH , Bokaro Thermal.(2) M/S R.S Industries, Gomia.(3) M/S Sri RAM Engineering ,B.S CITY.(4) M/S Unique enterpreses ,W.B(5) M/S A.B Enterprises ,Gomia.


90(6) M/S Hard mart, BOKERO Thermal.

Subject of NIT:- Procurement of Consumables items for Coal mill, BTPS’B’

Dear Sir,

Sealed quotation (In duplicate) is invited from the suppliers for under noted items with full specification, description; literature [if available] and make should be clearly mentioned.

Please send your quotation in single stage & single envelope mode to the S.E. [Tech.] DVC, Bokaro ‘B’ Thermal Power Station on, before due date and time of opening i.e 18/05/10(after 15.30Hrs)

ii) Specification of material:-

Sl No.

Material Description Quantity(Kg) Rate/Kg

01 AsbestosRope;style:1000, make: Champion(i) Size:03mm 50kg(ii) Size:06mm 50kgiii)Size:08mm 50kgiv)Size:20mm 20kgv)Size:24mm 25kg

02 AsbestoTape. Size:50*05mm,make:Champion

25kg


9103 AsbestosCloth,Size:03mm,make

Champion100kg

Delivery period: Within3-4 months

iii) TERMS AND CONDITIONS OF NIT:-

1. Offer must be submitted in English language only.2. You should submit your offer at the earliest in single stage & single

envelop mode i.e. offer is to be placed under a common envelop supers can being Enquiry No and due date of opening etc.

3. Please quote your rate in words & figures both. If there is a discrepancy between words and figure, the amount in words will prevail. If there is discrepancy in unit rate and subtotal price obtained by multiplying unit rate with the quantity or between subtotal and total price the unit rate and subtotal price will prevail.

4. There should not be any marks of erasers. Alteration, if any, shall be initiated with date by the person signing on behalf of the tender. Every attempt should be taken to avoid any cutting/over-writing .Preferably, offer is to be submitted in neatly typed/computer printed format to avoid any confusion/ambiguity in the quoted rates/terms and conditions .Any cutting/overwriting/use of eraser etc. Offer should be authenticated by the bidders. No process escalation will be entertained.

5. Normally price revision by the bidder will be entertained.6. Conditional discount will not be considered for bid evaluation.

However, if the offer becomes L-1 offer DVC may accept discount while placing the order. Complete information on all the points as asked for in the inquiry should be given in the offer.

7. Quotation received after due date may not be considered. If you submit more than one offer against the NIQ within the due date, the latest offer received against the NIQ at this office may only be taken into consideration.

8. Firm delivery period/delivery schedule must be mentioned in the quotation which may be one of the main points of consideration.


929. The successful tenderer has to advise the consignee be Fax message

regarding dispatch of materials in addition to sending R/E by Registered post.

10. Validity: Validity of the offer should be 90 days from the date of opening of the tender.

11. Price should be quoted in Indian Rupees (INR) only.12. Price: The rates quoted by you should be on firm price basis

excluding Sales Tax, Excise Duty, Octroi Surcharge, TOT etc. If this is not done your quotation will be deemed to be inclusive of all taxes, duties etc .price should be quoted for FOR – BTPS basis including P&F charge, if any. However, specific quantum of Freight & insurance charges, if any, to be spelt out clearly .Bids will be evaluated on total landed price FOR-BTPS basis.

13. In case the offer of the manufacturer is exclusive of taxes and duties as applicable, the same are to be specified in an explicit way.

14. DVC reserves the rights the right not to accept the rates offered by you and to reject the offer without assigning any reason thereof.

15. Please furnish your e-mail No., Contact No. , Fax No. Tax identification No. and details of your banker & bank account no. Please also mention the name of the contact persons with their contact nos. , e-mail ID etc. Who may be contacted for queries related to the subject procurement?

16. Liquidated Damage Clause : The time/the date of delivery of the stores stipulated in the order shall be deemed to be the essence of the contact. In case of any delay attributed to the party in execution of supply beyond the stipulated date of delivery period/delivery schedule including any extension thereof per mitted in writing, the owner reserves the right to recover from the vendor, a sum equivalent to 0.5% of the value of the delayed materials for each week of delayed and part there of subject to maximum of 5% of the total value of the order as LD. OR Alternatively, DVC reserves the right to get the supply executed from elsewhere at the sole risk and cost of the vender and recover all such extra costs incurred by DVC in getting the supply by the above Procedure OR Alternatively, DVC may cancel the Order/Contract completely or partly without prejudice to their right under the alternatives mentioned above.


93In the event of recourse to alternatives as above, DVC will have

the right to re-purchase the spares from other agency, to meet urgency in requirement caused by your failure to comply with the schedule of delivery period? LD ones deducted will not be refunded.

17. Payment term: 100% payment along with full taxes & duties will normally be made through A/C payee Cheque normally within 15 working days from the date of receipt of material at site and after inspection & acceptance thereof or from date receipt of Invoice whichever is latter. However, payment terms for P.O. to be placed on manufacturer directly, may be as follow in specific cases: 90% of the ordered value against dispatch documents through Bank subject to prior acceptance of SDBG, if applicable. Balance 10% of the ordered value to be paid after receipt of material at site and acceptance thereof. Acceptance of bank charges must be indicated under the same.

18. Security Deposit Cum Performance Guarantee .U will be required to furnish Security Deposit within 30 days from the date of placement of order , for an amount equivalent to 10% of the total order value against satisfactory execution cum performance guarantee of the materials. Security Deposit will remain valid for 06 months from the date of supply i.e. receipt of material at site, against any manufacturing defect /poor workmanship/poor performance and in case any deficiencies are found during the period the same shall be rectified/repaired/replaced free of cost as per the direction & satisfaction of Officer-in-charge. Security deposit is to be furnished in any one of the following modes.a) For order value up to Rupees Five lacs, security deposit may not be applicable, if payment is accepted after receipt & acceptance of materials at our site.b) For order value above Rs. 5.lacs, security deposit is acceptable in the form of Bank Guarantee (as per DVC’s format) issued from any Nationalized /Scheduled Rural Bank) with initial validity of 06 months from the date of execution of Bank Guarantee with claim period option is three months thereafter. The validity of the submitted BG may have to be extended suitably to cover the entire guaranty period


94with claim period of 03 months thereafter. The BG may be accepted after needful verification of the same from the appropriate authority.c) If no option is exercised by the quotationer, security deposit clause will be imposed as fit.d) SSI Units registered with NSIC, under its single point registration scheme, are exempted from depositing of security deposit for ordering value up to be monetary limit for which the units is registered. SSI Units seeking such exemption must enclose valid registration certificate from appropriate Govt. Authority giving details such as validity, stores, monetary, limit etc failing which exemption will not be granted.However, these SSI Units will have to submit Performance Guarantee for the materials. No payment will be made without acceptance & submission of security deposit.

19. You should accept LD &SD clauses. If nothing is explicitly mentioned in the offer, it will be assumed that all the terms conditions stated in the enquiry including LD & SD clauses are acceptable to you.

20. The scope of order may increase/decrease depending upon the actual site requirement at the time of order.

21. Offer submitted through FAX/e-mail may not be accepted.22. Unsolicited/unsigned/conditional/ambiguous offers with regards

to essentials may not be considered valid. 23. In sending your quotation you will be deemed to have read

understood and accepted the tender and conditions stated in the Enquiry.DVC reserves the right not to accept the rate quoted by you and reject offer should assigning any reason thereof.

24. Goods supplied will always be subject to our inspection and approval on arrival at destination in good conditions.

25. Tenders are to send their specific regret in case of none-participating in the NIQ.

26.Compliance of Regulations: You shall warrant that all services by you against this order /Contract shall have been competed in strict compliance with all applicable laws, regulations working conditions including industries (Development & Regulations) Act, 1951 & Industrial


95Dispute Act, 1947 and any amendments requirement as applicable from there to time.

All laws, rules and regulations required to be followed in execution of the order /Contract, must be compiled with you will execute and deliver such documents as may be needed by DVC in evidence of compliance. Any liability arising out of contravention of any of the laws of executing this order shall be your sole responsibility and DVC shall not be responsible in any manner whatsoever.

27.All suits arising out of the enquiry or LOI/LOA/order, if any, are subject to jurisdiction of the court of law in the city of Kolkata when resolution/settlement through natural discussion /arbitration fails.28. Force Majeure : Supplier shall not be considered in default if delay

in delivery occurs due to causes beyond his control such as acts of God, natural climate, civil wars, fire, frost, floods, riot and acts of unsurpassed power. Only those clauses shall be considered the cause of force/calendar majeure which have duration of more than seven days. A notification to this effect duly certified by the statutory authorities shall be given by the supplier to the owner within ten days from the date of such force Majeure condition by registered post. In the event of delay due to such causes, the delivery schedule will be extended for a length of time equal to the period of force majeure at the option of the Owner the order may be cancelled. Such cancellation would be without any liability whatsoever on the part of the owner. In the event of such cancellation, the supplier shall refund any amount advanced or paid to the supplier by the Purchaser and deliver back any materials issued to him by the Purchaser and release facilities, if any provided by the Purchaser.

29. Cancellation/Short Closure: The Owner may terminate/short close the contract, by not less than 30 days’ written notice to you, to be given after occurrence of any of the events specified in the Sl. No. (a) to (e) of this clause and 60 days in the case of event referred to Sl. No. (f). (g) & (h) below. i)The Vendor fails to comply with any of the terms of the Order or the

bidder do not remedy a failure in the performance of their obligations under the contract, within 30 days after being notified or within any


96further period as the Owner may have subsequently approved in writing.

j)The Vendor becomes bankrupt or goes into liquidation.k) If as a result of Force r, the bidder is unable to supply materials for

a period of not less than 60 days.l)If the Bidder, in the judgement of the Owner has engaged in corrupt or

fraudulent practices in competing or in executing the Contract. For the purpose of this clause.

m)“Corrupt Practice” means the offering, giving, receiving or soliciting of anything of value to influence the action of a public official in the selection processes or in contract execution.

n) “Fraudulent Practice” means a misrepresentation of acts in order to influence a selection processes or the execution of a Contract to the detriment of the Owner.

o) The Vendor is otherwise precluded from complying with any of the terms of the order on account of any directives of any lawful authority.

p) If the Owner, at its sold discretion, decides to terminate this contract.

Yours faithfully,

SUPERINTENDING ENGINEER (TECH)

DVC, BTPS ‘B’, Bokaro

Copy to The chief Engineer DVC, BTPS ‘B’ Bokaro Thermal. The Dy. Chief Engineer (M/M), DVC BTPS ‘B’ (O&M). The ACS, DVC, BTPS, Demand No.------ The JFA, DVC, BTPS.

Six (o6) nos. of offers received from following parties

With the approval of competent authority, LTE was issued to 06 nos. of bidders. On due date of opening on 18/05/2010, offers from all the 06 nos. of bidders were


97received and opened on 18/05/2010 in the presence of Tender Committee members. Following are the name & offer no of the bidders-

a) M/S ABC, Kathara , Vide no. ABC/10-11/EQ-10 dated 12/05/10b) M/S BCD, Howrah, Vide no. BCD/10-11/EQ-01 dated 13/05/10c) M/S.CDE, Bokaro, Vide no.CDE/10-11/EQ-03. dated 14/05/10d) M/S.DEF,Dhanbad, Vide no.DEF/10-11/EQ-04.dated 15/05/10e) M/S.EFG,Kanpur, Vide no.EFG /10-11/EQ-05 dated 16/05/10f) M/S.FGH.Patna, Vide no.FGH /10-11/EQ-06 dated 17/05/10


98

COMPARATIVE STATEMENT

Case File No-MS-I/2066

Sl No.

Material DescriptionQ

uan

tity

(K

g)

M/s

AB

C

M/s

BC

D

M/s

CD

E

M/s

DE

F

M/s

EF

G

M/s

FG

H

L1

Rat

e

LP

P

Yr

of L

PP

Var

iati

on(%

)

01 AsbestosRope;style:1000, make: Champion(i) Size:03mm 50kg 356 357 365 358 355 351 351 195 08 80

(ii) Size:06mm 50kg 530 533 538 534 528 525 525 520 09 0.96

iii)Size:08mm 50kg 522 524 533 526 520 515 515 520 09 (0.96)

iv)Size:20mm 20kg 423 425 428 426 421 418 418 415 09 0.72

v)Size:24mm 25kg 423 425 428 427 421 418 418 240 08 74.17


25kg 365 366 368 366 363 361 361 360 09 0.28


100kg 320 322 325 323 318 315 315 290 09 8.62

(L1 bidder is the lowest bidder among all)


99

Others Terms & condition of NIT:-

Sl

No.

Particulars

M/s

A

BC

M/s

B

CD

M/s

C

DE

M/s

D

EF

M/s

E

FG

M/s

F

GH

1 Delivery

Schedule :-

30 days 4 months 4 months 2 months 3 months 3 months

2 Validity of the

offer :

60 days 90days 90days 90days 90days 60days

3 TIN No 200721045435 20086314586 20782100121 20082101961 20312105486 2015847013

4 FOR:- BTPS Stores BTPS Stores BTPS Stores BTPS Stores BTPS Stores BTPS Stores

5 LD Clause:- Accepted Accepted Accepted Accepted Accepted Accepted

6 SD Clause Accepted Accepted Accepted Accepted Accepted Accepted

7 Other terms &

condition of

NIT

Accepted Accepted Accepted Accepted Accepted Accepted

8 PG Clause:- Accepted Accepted Accepted Accepted Accepted Accepted

Checked by: - Prepared by:-

(Member of finance section) (Member of SE (Tech.) section)


100

Minutes of the 1st meeting of the Tender committee held on date 09.07.2010 for Procurement of Consumables items for Coal mill, BTPS’B’

against case file no. MS-I/2066

1) Demand note of the indenter vide no CM/2010-11/10 dated 11.02.102) NIQ No: BT/B(O&M)/T/10-11/SC/CM/OS/MS-I/2066/E-80 dated 27.04.20103) Amendment to NIQ vide No NIL4) Offers of the responsive bidders:

g) M/S ABC, Kathara , Vide no. ABC/10-11/EQ-10 dated 12/05/10h) M/S BCD, Howrah, Vide no. BCD/10-11/EQ-01 dated 13/05/10i) M/S.CDE, Bokaro, Vide no.CDE/10-11/EQ-03. dated 14/05/10j) M/S.DEF,Dhanbad, Vide no.DEF/10-11/EQ-04.dated 15/05/10k) M/S.EFG,Kanpur, Vide no.EFG /10-11/EQ-05 dated 16/05/10l) M/S.FGH.Patna, Vide no.FGH /10-11/EQ-06 dated 17/05/10

The tender committee during its meeting held on above date scrutinized the details of case file (MS-I/2066) and following are the observations & resolutions of tender committee with respect to the provisions in NIQ.

JUSTIFICATION

The indenter has stated that the demanded materials are required regularly during overhauling of Coal Mills & its auxiliaries like coal feeders & PA Fan to arrst coal dust leakages, hot air leakages etc. They have stated that in the present financial year 05 to 06 nos. Coal mills, coal feeders will undergo overhauling. Considering the present stock position, the demanded quantity seems to be justified.

NIQ & OFFERS

With the approval of competent authority, LTE was issued to 06 nos. of bidders. On due date of opening on 18/05/2010, offers from all the 06 nos. of bidders were received & opened & placed before Tender Committee for scuritny, observation & recommendations thereof.

OBSERVATION

TECHINICAL ACCEPTABILITY : All the offers are technically acceptable to the indenter.


101 BID EVALUATION, RATE AND AMOUNT : On the basis of evaluation of bid M/s

FGH is the L-1 bidder for all items. Based on L-1 rates the amount involved on M/s FGH comes to Rs. 1, 28,885.00 only FOR – BTPS excluding CST. Comparative statement is enclosed in case file.

PRICE REASONALIBILITY; As per BUS, L-1 rate of item under Sl.No.1(i) is higher than LPP by approx. 80%,As LPP is two years old and considering above hike in quoted rate TC opines to ask the L-1 bidder for price justification. They may submit copy of recent P.O. of identical item served to any Govt./PSU/reputed firms and /or recent price list from their principle for justification of above quoted rate.

The quoted rate of item under Sl.No. 1(ii) is higher than the LPP by approx. O.96% As LPP is about one year old and there is marginally hike considering the present market trend the L-1 rate may be considered reasonable.

The quoted rate of item under Sl.No.1 (III) is lower than the LPP by approx 0.96%. as LPP is about one year old and there is lowering of rate from LPP. As the bid is competitive through LTE and L-1 rate is lower than LPP TG considers the rate reasonable.

The quoted rate of item under Si.No.1(iv) is higher than the LPP by approx 0.72%.As LPP is about one year old and three is marginally hike considering the present market trend the L-1rate may be considered reasonable.

As per BUS, L-1 rate of item no.1 (v) is higher than LPP by approx 74.17%. As LPP is two years old and considering above hike in quoted rate TC opines to ask the L-1 bidder for price justification. They may submit copy of recent P.O. of identical item served to any Govt./PSU/Reputed firms and /or recent price list from their principle for justification of above quoted rate.

The quoted rate of item under Sl.No.2 is Rs.361/- only against LPP of Rs.360/- only. As LPP is about one year old and three is hike of only Rs.1/- only considering the present market trend the L-1 rate may be considered reasonable.

As per BUS, L-1 rate of item no.3 is higher than LPP by approx. 8.62%. As LPP is about one year old and considering above hike in quoted rate TC opines to ask the L-1 bidder for price justification. They may submit


102copy of recent P.O. of identical item served to any Govt./PSU/Reputed firms and/or recent price list from their principal for justification of above quoted rate.

DELIVERY TERMS & CONDITIONS:

Payment term: M/s FGH have accepted payment terms as per NIQ.

Delivery Period: The offered delivery period of M/s FGH is as per NIQ.

SD Clause: The L-1 bidder has accepted LD Clause as per NIQ. Validity of Offer: Offer of M/s FGH is valid for 60 days from the

date of opening of tender which should be 90 days from the date of opening. TC opines to ask the L-1 bidder for confirmation.

Other Terms & Condition: The L-1 bidders have not furnished their TIN and Banker’s details. They are required to furnish the same.

RECOMMENDATION

The case file is to be placed again before TC after receipt of reply from M/s FGH for further needful.

Sd/- Sd/- Sd/-

Head of SE (Tech) Member of Finance Indenter


103

SETTLEMENT OF DEVIATION

A. For settlement of deviation regarding observation of TC Meeting held on 09/07/2010, SE(Tech.) section issues a letter to L1 bidder i.e. M/s FGH ,Patna with following points :

1) Rate Reasonability: Your quoted rates appear to be on the higher side. You are requested to justify the quoted rates by submitting copies of recent P.O. of having supplied similar items to any Govt.firm /PSUs/reputed pvt. firm for resorting them to cost price analysis.

2) Validity of the offer: Your quoted offer is valid for 60 days from the date of opening of tender which shall be 90 days from the date of opening. Please accept the same as per NIT.

3) TIN No. & Banker’s details: please furnish your TIN No. & banker’s details.

B. Reply from parties In reply against Pt.no.-1, Party stated that a gross discount @ 10% of offer value is to be considered.

In reply against Pt.no.-2, party agrees with NIT provision i.e. validity of the offer is 90 days from the date of opening of tender.

In reply against Pt.no.-3, party mention the TIN No. 2015847013 And Bank A/C No. & Banker’s details.


104

Minutes of the 2st meeting of the Tender committee held on date 16.07.2010 for Procurement of Consumables items for Coal mill, BTPS’B’

against case file no. MS-I/2066

1) Demand note of the indenter vide no CM/2010-11/10 dated 11.02.102) NIQ No: BT/B(O&M)/T/10-11/SC/CM/OS/MS-I/2066/E-80 dated 27.04.20103) Amendment to NIQ vide No NIL4) Offers of the responsive bidders:

m) M/S ABC, Kathara , Vide no. ABC/10-11/EQ-10 dated 12/05/10n) M/S BCD, Howrah, Vide no. BCD/10-11/EQ-01 dated 13/05/10o) M/S.CDE, Bokaro, Vide no.CDE/10-11/EQ-03. dated 14/05/10p) M/S.DEF,Dhanbad, Vide no.DEF/10-11/EQ-04.dated 15/05/10q) M/S.EFG,Kanpur, Vide no.EFG /10-11/EQ-05 dated 16/05/10r) M/S.FGH.Patna, Vide no.FGH /10-11/EQ-06 dated 17/05/10

5) Minutes of the TC dated 09/07/106) Letter of DVC dated 10/07/107) Reply of the M/s FGH, Patna dated 15/07/2010

The tender committee during its meeting held on above date scrutinized the details of case file (MS-I/2066) and following are the observations & resolutions of tender committee with respect to the provisions in NIQ.

JUSTIFICATION

The indenter has stated that the demanded materials are required regularly during overhauling of Coal Mills & its auxiliaries like coal feeders & PA Fan to arrest coal dust leakages, hot air leakages etc. They have stated that in the present financial year 05 to 06 nos. Coal mills, coal feeders will undergo overhauling. Considering the present stock position, the demanded quantity seems to be justified.

NIQ & OFFERS


105With the approval of competent authority, LTE was issued to 06 nos. of bidders. On due date of opening on 18/05/2010, offers from all the 06 nos. of bidders were received & opened & placed before Tender Committee for scrutiny, observation & recommendations thereof.

OBSERVATION

TECHINICAL ACCEPTABILITY : All the offers are technically acceptable to the indenter.

BID EVALUATION, RATE AND AMOUNT : On the basis of evaluation of bid M/s FGH is the L-1 bidder for all items. Based on L-1 rates the amount involved on M/s FGH comes to Rs. 1, 28,885.00 only FOR – BTPS excluding CST.

4) Rate Reasonability : On scrutiny of the case file c/s by the members of the TC it was founded that firm has quoted Rs. 128885.DE has been worked out by the indenter in a realistic & objective manner by taking Last Purchase Price. As per BUS, rates of L1 bidder are overall 13% higher side. As the rate quoted by the firm was more than the rate of LPP, the tender committee opened for asking the firm to submit copies of recent P.Os of having supplied similar item to any any Govt.firm /PSUs/reputed pvt. firm for resorting them to cost price analysis.

The firm in their reply has stated that they offered a 10% discount on offer value. After discount the total amount was come Rs 115997.00(appx.). Which is again 1.7% higher side than Last Purchase Price.

As the LPP is old more than 1 year hence rate quoted by the firm is

quite reasonable & acceptable to the members of Tender Committee.

DELIVERY TERMS & CONDITIONS:

Payment term: M/s FGH have accepted payment terms as per NIQ.

Delivery Period: The offered delivery period of M/s FGH is as per NIQ.

LD Clause: The L-1 bidder has accepted LD Clause as per NIQ.


106 SD Clause : As the offered value is less than Rs.5 lakhs SD Clause

is not applicable. Validity of Offer: Offer of M/s FGH is valid for 60 days from the

date of opening of tender which should be 90 days from the date of opening. TC opines to ask the L-1 bidder for confirmation.

In reply the firm accepted the validity of the offer as per NIT.

Other Terms & Condition: The L-1 bidders have not furnished their VAT TIN and Banker’s details. They are required to furnish the same.

In reply the firm mentioned the TIN No., Bank A/C No. & Bankers details.

Fund Availability : Fund is available in BE 10-11 under Consumable Head.

DFP Sl No.: Financial power is exercised under DFP Sl No. 9.3(ii) of G&S,09.

RECOMMENDATION

In view of the above the members of the Tender Committee unamously recommends for placement of Purchase Order to M/s FGH, Patna for an amount 115997.00(Rupees One Lakh Fifteen Thousand Nine Hundred Ninety Seven only) excluding CST. Submitted to Dy.Chief (M/M) for his kind approval & placement of Purchase Order.

Sd/- Sd/- Sd/-

Head of SE (Tech) Member of Finance Indenter


107

Submitted to Dy.Chief (M/M) for his kind approval

PURCHASE ORDER


BOKARO ‘B’ THERMAL POWER STATION (O&M)

P.O. – BOKARO (JHARKHAND)

PIN - 829107

(BY SPEED POST)

PO. No. BT/B (O&M)/T/10-11/SC/P-110 Dated.17/07/2010

To,

M/s FGH,Patna, India.PIN- 800001

Sub: PROCUREMENT OF Consumables items for Coal mill, BTPS’B’

Ref: -

1. Offer No. FGH /10-11/EQ-06

Tel- Fax No:Fax No.


1082. Enquiry No. BT/B(O&M)/T/10-11/SC/CM/OS/MS-I/2066/E-80

Dear Sir (s)

With reference to above, DAMODAR VALLEY CORPORATION is pleased to place order on you to deliver the following items at the rate and the terms and the conditions given below.

PTO

Sl No.

Material Description Quantity(Kg) Rate/Kg

01 AsbestosRope;style:1000, make: Champion(i) Size:03mm 50kg 351(ii) Size:06mm 50kg 525iii)Size:08mm 50kg 515iv)Size:20mm 20kg 418v)Size:24mm 25kg 418


25kg 361


100kg 315

TOTAL 128885

Less: Discount@10% 12888.5 Net Amount 115996.5 i.e 115997.00 Rupees One Lakh Fifteen Thousand Nine Hundred Ninety Seven only

TERMS & CONDITION

1. Price basis: - The above prices are FOR BTPS, B-DVC basis exclusive of excise duty on production of documentary evidence.


1092. VAT / CST: - will be paid extra as applicable on production of

documentary evidence.3. Delivery: - within two months from the date of P.O.4. Mode of payment: -Material is securely packed conditions should be

delivered to the consignee.5. Payment: -100% Payment will be made after receipt & acceptance of

materials at site. Please submit original bill to the Sr. Addln. Chief Account Officers, DVC, BTPS along with all necessary documents for payment – a set of the same should be sent the consignee.

6. Consignee: Controller of Stores, DVC, BTPS-B.7. LD Clause: As mentioned in the Enquiry/NIT.8. SD Clause: As mentioned in the Enquiry/NIT.9. Force Measure Clause: As mentioned in the Enquiry/NIT.10.Risk Purchase Clause: As mentioned in the Enquiry/NIT.11.Transit Insurance: To be borne by DVC under Mega Insurance Policy.12.Termination of the contract: DVC reserves the right to cancellation of

the contract at any time without giving prior notice.


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Date post:	03-Apr-2015
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