NTPC LIMITED

(A Government of India Enterprise)

CORPORATE CONTRACTS, NOIDA

INVITATION FOR BIDS (IFB)

FOR

DEVELOPMENT AND OPERATION OF PAKRI BARWADIH COAL BLOCK, DISTRICT HAZARIBAGH, STATE OF JHARKHAND, INDIA

(International Competitive Bidding)
IFB No .: 40026394	Date: 04.09.2014
Bidding Doc. No: CS-7010-602(R)-2

1.0NTPC Limited (NTPC) invites online bids on Single Stage Two Envelope bidding

basis (Envelope-I: Techno-Commercial Proposal & Envelope-II: Price Proposal) with Reverse Auction from eligible bidders for Development and Operation

of Pakri Barwadih Coal Block, Hazaribagh District, State of Jharkhand, India as per the Scope of Work mentioned hereinafter.

2.0Brief Scope of Work

The	broad	scope		of work includes excavation				of various	rocks/earth cutting
by	mechanised means,				loading,	transportation,		dumping,	dozing,	mining	of
coal, crushing			the	coal	to a pre-determined size, leveling at OB dumping
site	to	ensure		progressive		mine	closure,	construction, operation			&
maintenance			of	related	infrastructure		facilities	like equipment		workshop,

electrical substations, statutory buildings, pumping arrangements, haul road

maintenance, O&M of owner’s CHP, delivery	of crushed coal to NTPC at the
pre-determined delivery point etc and	compliance to all statutory
requirements as applicable etc.

3.0Detailed scope of work, specifications and terms & conditions are given in the bidding documents which are available for examination and sale at the address given below as

per the following schedule:

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Bidding Document No. : CS-7010-602(R)-2

Documents Sale Dates	:	From 24.09.2014 to 20.10.2014
& Timings	:	From 1000 Hrs to 1700 Hrs. (IST)

Last date & Time for submission of Bids	: 25.11.2014 upto 1500 Hrs. (IST)
(both Techno-Commercial proposal
(Envelope-I) and Price proposal (Envelope-II))
Techno-Commercial proposal (Envelope-I)	: 25.11.2014 at 1530 Hrs. (IST)
Opening Date & Time

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Cost of Bidding Document	:	INR. 22,500/- (Indian Rupees Twenty Two
		Thousand Five Hundred only) per set for
		Indian Bidders and US$ 500/- (US Dollar
		Five Hundred only) per set for Foreign
		Bidders.

The date of opening of Envelope-II (Price Proposal) shall be intimated separately by NTPC.

4.0 All bids must be accompanied by Earnest Money Deposit for an amount of INR. 663,000,000 /- (Indian Rupees Six Hundred Sixty Three Million only) in the form as

stipulated in bidding documents.

Earnest Money Deposit in Original shall be submitted in a separate sealed envelope before the stipulated bid submission closing date and time. In case acceptable Earnest Money Deposit in a separate sealed envelope is not received then online Bid shall be rejected by the Employer as being non-responsive and shall not be opened.

5.0Qualifying Requirements

In addition to the satisfactory fulfillment of the requirements stipulated under section ITB, the following shall also apply:

5.1Technical Criteria

5.1.1The Bidder should have been awarded, in the preceding 7 (seven) years reckoned from the date of opening of the Techno-commercial Bids and developed & operated single coal / lignite mine having coal/lignite reserves of at least 150

million tonnes & annual capacity of at least 6 MTPA and successfully produced coal/lignite from such mine.

OR

5.1.2The Bidder should have, in the preceding 7 (seven) years reckoned from the date of opening of the Techno-commercial Bids, operated and produced:

a) At least 30 Million BCM of aggregated volume of overburden and/ or coal/ lignite from a maximum of five open cast mines of Coal / Lignite, in any year.

b) At least 15 Million BCM of composite volume of overburden and coal/lignite from single open cast mine in any year, out of which at least 3 million tonnes shall be coal / lignite.

The qualifying works at 5.1.2(a) can be from same mine or different mines including the mine considered to meet qualifying requirement at 5.1.2(b).

5.2Financial Criteria

a)In any three consecutive Financial Years, as proposed by the bidder out of preceding four Financial years, as on the date of opening of Techno-commercial bids:

i)The average annual turnover of the Bidder should not be less than INR 8100 Million (Indian Rupees Eight Thousand One Hundred Million only) or in equivalent foreign currency; and

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ii)The average annual cash accrual of the Bidder should not be less than INR 900 Million (Indian Rupees Nine Hundred Million only), or in equivalent foreign currency. The Bidder must have a positive cash accrual in the last Financial Year out of the three consecutive Financial Years considered by the bidder.

b)Net Worth of the Bidder as on the last date of the last financial year out of the three consecutive Financial Years, as proposed by the Bidder at 5.2(a) above should not be less than INR 4500 million (Indian Rupees Four Thousand Five Hundred Million Only), or in equivalent foreign currency, which should be equal to or more than 100% of its paid up share capital.

c)The unutilized line of credit for fund based and non-fund based limits with cash and bank balances including fixed deposits of the Bidder as on a date not earlier than 15 days prior to the date of Techno-commercial Bid opening, duly certified by its Bankers should not be less than INR 590 Million (Indian Rupees Five Hundred Ninety Million only) or in equivalent foreign currency. In case certificates from more than one bank are submitted, the certified unutilized limits should be of the same date from all such banks.

i) Where another Company of the Group acting as the Treasury Centre is responsible for Treasury Management of the Bidder having combined credit/guarantee limit for the whole group, the Bidder would be required to provide a Banker’s certificate regarding the unutilized line of credit for fund based and non-fund based limits together with cash and bank balances including fixed deposits available to such Treasury Centre. Further, Treasury Centre shall certify that out of the aforesaid limits certified by the bankers, the Bidder shall have access to the line of credit of a level not less than the specified amount at clause 5.2 (c) above. In proof of this, the Bidder would be required to furnish along with its Techno-commercial Bid, a Letter of Undertaking from the Treasury Centre, supported by a Resolution passed by the Board of Directors of the Holding Company, as per the format enclosed in the bidding documents, pledging unconditional and irrevocable financial support for the execution of the Contract by the Bidder in case of award.

ii)In case the Bidder’s unutilized line of credit for fund based and non-fund based limits specified at clause 5.2 (c) above is not sufficient, a comfort letter from one of the bankers specified in the bidding documents unequivocally stating that in case the Bidder is awarded the contract, the Bank would enhance line of credit for fund based and non-fund based limits to a level not less than the specified amount to the Bidder or to the Treasury Management Centre as the case may be, shall be acceptable.

5.3ROUTES

The Bidder shall be either a single corporate entity or a consortium of up to three corporate entities and may follow any one of the following route;

5.3.1ROUTE – 1

Bidder fulfils all the requirements at Clause 5.1 & 5.2 on its own.

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5.3.3ROUTE –3 (Consortium)

i.Bidder may be a Consortium of up to three corporate entities and should collectively meet the requirement of technical criteria mentioned at para 5.1 above. For Bidders who are getting qualified in the 5.1.2 route, requirement of

5.1.2(b) should be met by one of the consortium partners.

ii.All the Consortium members shall select one of the members as the “leader” who should meet on its own, financial criteria mentioned at clause 5.2 above.

iii.Net worth of all the consortium members in combined manner, as on the last date of the last financial year out of the three consecutive Financial Years, proposed by bidder for meeting Financial Criteria, should be equal to or more than 100% of their total paid up share capital. However, net worth of each member of the consortium excluding the leader, as on the last date of the last financial year out of the three consecutive Financial Years, considered by bidder for meeting Financial Criteria, should not be less than 75% of their respective paid up share capital individually.

iv.Each member of the consortium should meet either

a.Technical criteria at clause 5.1.1 or

b.At least 20% of the technical criteria at clause 5.1.2 (a) ie 6 Million BCM of aggregated volume of overburden and/ or coal/ lignite from a maximum of five open cast mines of Coal / Lignite, in any year. However the total number of mines to be considered for meeting the technical criteria at 5.1.2(a) collectively by all consortium members shall not exceed five.

or

c.At least 20% of the absolute value(s) of the Financial Criteria mentioned at Clause 5.2 above.

v.In this route, none of the consortium members will be allowed to draw any technical or financial strength from its Subsidiary (ies) and/or Holding Company.

vi.Each of the Consortium members will be required to furnish legally enforceable Consortium Operating Agreement (COA) along with its Techno-commercial Bid holding themselves jointly & severally responsible and liable to NTPC to perform all contractual obligations, valid for the entire period of contract, as per the format enclosed in the bidding documents. The number of executants of the COA should not exceed three.

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NOTES:
i.	The word “operated” means that the Bidder should have performed the necessary
	activities of drilling, blasting, excavation, hauling, etc. on its own or through sub-
	contracting.
ii.	The word “developed” means that the Bidder should have performed the necessary
	activities of Land Acquisition / assisted in Land Acquisition, Statutory
	clearances/assisted in Statutory clearances and carried out ‘Infrastructure
	development’ on its own or through sub-contracting.
iii.	“Infrastructure development” as per (ii) above means construction of CHP,
	Buildings, Workshops, in a coal/lignite mine.
iv.	“Aggregate” means combination of overburden and / or minerals (anyone or more)
	from one or more opencast mines of minerals (maximum of five mines).
v.	The word “overburden” shall also include “inter-burden provided it is measured and
	accounted separately.”
vi.	The word “composite” means that the Bidder should have produced both overburden
	and coal/lignite from the same mine.
vii.	For Coal/Lignite, following specific gravity (tonnes/cubic meters) shall be considered:
		COAL		LIGNITE
		1.50		0.8
viii.	For criteria 5.1 in case the Bidder is seeking qualification as a mine owner, the
	volume of overburden/coal/lignite production should be certified by Statutory Auditor
	of the Bidder.

ix.For criteria 5.1, in case the Bidder is seeking qualification as a mine operator under a contract, the Bidder should submit a copy of the Contract Agreement and a certificate of production of Overburden/coal/lignite and certificates for activities of Land Acquisition/Statutory Clearances & Infrastructure development from the Owner.

Alternatively, a certificate from the Statutory Auditor of the Bidder certifying the volume of overburden/coal/lignite production and certificates for activities of Land Acquisition/Statutory Clearances & Infrastructure development can also be submitted.

x.“Holding Company “and “Subsidiary “shall have the meaning ascribed to them as per Companies Act, in vogue.

xi.In case the Bidder is not able to furnish its audited financial statements on stand alone entity basis, the unaudited unconsolidated financial statements of the Bidder can be considered acceptable provided the Bidder further furnishes the following documents on substantiation of its qualification:

a.Copies of the unaudited unconsolidated financial statements of the Bidder along with copies of the audited consolidated financial statements of its Holding Company.

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b. A Certificate from the Chief Executive Officer (CEO)/Chief Financial Officer (CFO) of the Holding Company, as per the format enclosed in the bidding documents, stating that the unaudited unconsolidated financial statements form part of the Consolidated Annual Report of the Company.

In case where audited results for the last preceding financial year are not available, certification of financial statements from a practicing Chartered Accountant shall also be considered acceptable.

The provisions of this Note (xi) shall also be applicable for Subsidiary Company/ Holding Company / subsidiary of Holding Company / Consortium Members

xii.Net worth means the sum total of the paid up share capital and free reserves. Free reserve means all reserves credited out of the profits and share premium account but does not include reserves credited out of the revaluation of the assets, write back of depreciation provision and amalgamation. Further any debit balance of Profit and Loss account and miscellaneous expenses to the extent not adjusted or written off, if any, shall be reduced from reserves and surplus.

xiii.For Cl. 5.3.2 (iv), Net worth in combined manner as percentage of Paid up Share capital shall be calculated as follows:

If Net worth of the bidder (X1) and two out of (X2 & X3) Subsidiary (ies) and/or Holding Company and/or Subsidiary(ies) of its Holding Company is X1, X2 & X3 respectively and corresponding Paid up share capital of the bidder and Subsidiary (ies) and/or Holding Company and/or Subsidiary(ies) of its Holding Company is Y1, Y2 & Y3 respectively, then

	X1+X2+X3
Net worth (in combined manner) =	--------------- X 100 %
	Y1+Y2+Y3

xiv.For Cl. 5.3.3 (iii), Net worth in combined manner as percentage of Paid up Share capital shall be calculated as follows:

If Net worth of the three Consortium partners is X1, X2 & X3 respectively and corresponding Paid up share capital of the three Consortium partners is Y1, Y2 & Y3

respectively, then
	X1+X2+X3
Net worth (in combined manner) =	--------------- X 100 %
	Y1+Y2+Y3

xv. For meeting financial criteria, Bidder under Route-1 shall consider the same set of three consecutive Financial Years.

For meeting financial criteria, Bidder and its Subsidiary (ies) and/or Holding Company and/or Subsidiary (ies) of its Holding Company under Route-2 shall consider the same set of three consecutive Financial Years.

For meeting financial criteria, all the Consortium Members under Route-3 shall consider the same set of three consecutive Financial Years.

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xvi.Cash Accrual shall mean the net cash flow from operations i.e. PAT + Depreciation + Other non-cash expenses.

xvii.Other income shall not be considered for arriving at annual turnover.

xviii.For unutilized line of credit for fund based and non-fund based limits, Cash Accrual, Net worth and Turnover indicated in foreign currency, the exchange rate as on 7 days prior to the date of opening of Techno-commercial bid shall be used.

xix.‘year’ as per Clause 5.1 and 5.3.3(iv(b)) means a continuous period of 365 days.

xx.Notwithstanding anything stated above, NTPC reserves the right to assess the capabilities and capacity of the Bidder / its Subsidiary(ies) / its Holding Company/Subsidiary(ies) of its Holding Company, etc., as the case may be, to perform the contract, should the circumstances warrant such assessment in the overall interest of NTPC.

6.0NTPC reserves the right to reject any or all bids or cancel/withdraw the Invitation for Bids without assigning any reason whatsoever and in such case no bidder/intending bidder shall have any claim arising out of such action.

7.0A complete set of Bidding Documents may be downloaded by any interested Bidder on

payment (non-refundable) of the cost of the documents as mentioned above in the form of a crossed account Payee demand draft in favour of NTPC Ltd., Payable at New Delhi or directly through the payment gateway at our e-Tender Site (https://etender.ntpclakshya.co.in). For logging on to the e-Tender Site, the bidder would require user id and password which can be obtained by submitting a questionnaire available at our e-Tender site as well as at NTPC tender site (www.ntpctender.com). First time users not allotted any vendor code are required to approach NTPC at least three working days prior to Document Sale Close date along with duly filled in questionnaire for issuance of user id and password.

Prospective bidders from State of Uttar Pradesh are compulsorily required to provide TIN number at the time of purchase of bidding documents from office of NTPC.

Issuance of bid documents to any bidder shall not construe that such bidder is considered to be qualified. Bids shall be submitted and opened at the address given below in the presence of bidder’s representatives who choose to attend the bid opening.

8.0Address for communication:

AGM (CS-III) / Manager (CS-III) Contract Services - III

NTPC Ltd., 6th Floor, Engineering Office Complex, A-8A, Sector-24, NOIDA (UP) PIN - 201 301 Ph.No:0120-2410366/4948620

Fax Nos. : + 91 - 120 - 2410215 / 2410011

Email: navinbagai@ntpc.co.in; ramakrishna@ntpc.co.in

Websites: https://etender.ntpclakshya.co.in or www.ntpctender.com or www.ntpc.co.in

Registered Office: NTPC Bhawan, SCOPE Complex, 7, Institutional Area, Lodhi Road,

New Delhi-110003, Corporate Identification Number: L40101DL1975GOI007966, Web site: www.ntpc.co.in

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