NTPC LIMITED

(A Govt. of India Enterprise)

(CORPORATE CONTRACTS, NOIDA)

INVITATION FOR BIDS (IFB) FOR

STEAM TURBINE GENERATOR ISLAND PACKAGE FOR

TELANGANA SUPER THERMAL POWER PROJECT, PHASE-I (2X800MW),

AT

PO JYOTHINAGAR, DISTRICT- KARIMNAGAR, STATE OF TELANGANA, INDIA

(International Competitive Bidding)

IFB No.: 40034538

Bidding Document No.: CS-9591-110-2 Date: 16.02.2015

1.0 NTPC invites online bids from eligible bidders in TWO STAGES (i.e. Stage-I: Techno-Commercial and Stage-II: Price) for aforesaid package as per the brief Scope of Work mentioned hereinafter.

2.0 BRIEF SCOPE OF WORK

The scope includes design, manufacture, engineering, inspection, testing, packing, forwarding to site, unloading, erection, supervision, pre-commissioning, testing, commissioning and performance testing of two (02) nos steam turbine generator units along with auxiliaries of the type and rating specified. Each unit shall include but not be limited to the following:

Steam turbine generator sets complete with lube oil and control oil system, unit and central oil purification system, turbine gland sealing system, turbine integral and other miscellaneous piping, generator seal oil system, generator stator water cooling system, generator rotor cooling system, water cooled condenser, condenser air evacuation system, condenser on load tube cleaning system, 3x50% condensate extraction pumps, feed heating plant with minimum seven regenerative feed heaters including deaerating feed water heater with storage tank, 2x50% Turbine driven Boiler feed pumps and 1x30% motor driven Boiler Feed Pump with variable speed fluid coupling, HP & LP steam bypass system, EOT crane, power cycle piping, equipment cooling water system, condensate polishing plant (CPU), unit air receivers for compressed air system & compressed air piping around TG building, elevators for TG hall and service building, hoists, air conditioning and ventilation system, temporary elevator for TG hall, control and instrumentation for STG Integral systems & TG-BOP Auxiliaries, generator bus duct and associated equipment, LT switchgear & LT bus duct, solar PV plant on roof tops of buildings, cables & cabling, Geotechnical investigation, civil, structural, architectural works for main plant building, service building, pipe/cable/ duct supporting structures in TG area, CPU regeneration facilities, area paving & other equipment foundations including earthing mats & raisers in TG area, PORTA cabin, foundations for TG, TDBFP & MDBFP with or without vibration isolation system as per option, civil works for air conditioning and ventilation system, infrastructure works such as approach roads, drains, water supply, sewerage, rainwater harvesting, commissioning and performance testing of equipment under bidder’s scope of work, first fill and one year topping requirement of consumables/chemicals, supply of special maintenance tools and tackles, erection materials and consumables, mandatory spares etc.

Detailed scope of work has been specified in the bidding documents.

3.0 NTPC intends to finance the aforesaid Package through External Commercial Borrowings/Own Resources.

4.0 Detailed specification, scope of work and terms & conditions are given in the bidding documents, which are available for examination and sale at the address given below and as per the following schedule:

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

5.0 All bids must be accompanied by Bid Security for an amount of INR 314,039,000/- (INR Three Hundred Fourteen Million Thirty Nine Thousand only) or USD 5,047,300/- (USD Five Million Forty Seven Thousand Three Hundred only) in the form as stipulated in the Bidding Documents.

ANY BID NOT ACCOMPANIED BY AN ACCEPTABLE BID SECURITY IN A SEPARATE SEALED ENVELOPE SHALL BE REJECTED BY THE EMPLOYER AS BEING NON-RESPONSIVE AND SHALL NOT BE OPENED.

6.0 Qualifying Requirements for Bidders (QR):

1.0.0 The Bidder should meet the qualifying requirements of any one of the qualifying routes stipulated under clause 1.1.0 or 1.2.0 or 1.3.0 or 1.4.0 or 1.5.0. In addition, the Bidder should also meet the requirements stipulated under clause 2.0.0 & 3.0.0 together with the requirements stipulated under section ITB.

1.1.0 Route 1: Qualified Steam Turbine Generator Manufacturer

1.1.1 The Bidder should have designed, engineered, manufactured / got manufactured, erected / supervised erection, commissioned / supervised commissioning of (i) at least one (1) number supercritical steam turbine of tandem compound, condensing, reheat type of 500 MW or above capacity with main steam pressure of 225 Kg/cm² (gauge) or higher and main steam / reheat temperature of 535⁰ C / 535⁰ C or higher and (ii) at least one (1) number of generator of two pole, Thermal class 155(F) winding insulation, hydrogen/ water cooled stator and hydrogen / water cooled rotor of 500MW or above capacity. These steam turbine and generator should have been in successful operation for a period of not less than one(1) year prior to the date of techno-commercial bid opening.

1.1.2 The Bidder should have registered in India under the companies act of India either a Subsidiary Company or a Joint Venture (JV) Company for manufacturing of supercritical steam turbine generator sets.

(a) In case the Bidder has formed a Subsidiary Company then the Subsidiary Company of the Qualified Steam Turbine Generator Manufacturer should have been registered in India under the Companies Act of India for manufacturing supercritical steam turbine generator sets covering the type, size and rating specified as on the date of techno-commercial bid opening. If the Subsidiary Company is registered as a public limited Company then it should have obtained certificate for Commencement of Business in India as on the date of techno-commercial bid opening.

The Subsidiary Company shall remain a subsidiary Company of the Qualified Steam Turbine Generator Manufacturer for a minimum period of 7 years from the date of incorporation of such Subsidiary Company or up to the end of the defect liability period of the contract whichever is later.

(b) In case the Bidder has formed a JV Company then, the Joint Venture (JV) Company should have been incorporated in India under the Companies Act of India, as on the date of techno-commercial bid opening and promoted by (i) an Indian Company registered in India under the Companies Act of India and (ii) a Qualified Steam Turbine Generator Manufacturer, for the purpose of manufacturing supercritical steam turbine generator sets covering the type, size and rating specified. If the JV Company is incorporated as a public limited Company then it should have obtained certificate for Commencement of Business in India as on the date of techno-commercial bid opening.

The Qualified Steam Turbine Generator Manufacturer shall maintain a minimum equity participation of 26% in the JV Company for a lock-in period of 7 years from the date of incorporation of JV Company or up to the end of the defect liability period of the contract whichever is later.

One of the promoters shall be a majority stakeholder who shall maintain a minimum equity participation of 51% in the JV Company for a lock in period of 7 years from the date of incorporation of JV Company or up to the end of the defect liability period of the contract whichever is later.

1.1.3 The Bidder shall furnish a Deed of Joint Undertaking (DJU) executed by it, the Subsidiary Company / JV Company (as the case may be) and other promoter having 25% or higher equity participation in the Subsidiary Company / JV Company (as the case may be) in which all the executants of DJU shall be jointly and severally liable to the Employer for successful performance of the contract for the scope related to Steam Turbine Generator and Auxiliaries including turbine cycle, regenerative feed heating and pumping system as per the format enclosed in the bidding documents. The Deed of Joint Undertaking shall be submitted along with techno-commercial bid, failing which the Bidder shall be disqualified and its bid shall be rejected.

In case of award, the Subsidiary Company or JV Company (as the case may be) and other promoter having 25% or higher equity participation in the Subsidiary Company / JV Company (as the case may be), shall each be required to furnish an on demand bank guarantee (BG) for an amount of 0.5% of the total contract price of the Steam Turbine Generator Island Package in addition to the contract performance security to be furnished by the Bidder.

1.1.4 A super critical steam turbine manufacturer who meets the requirements of clause 1.1.1 except for generator would also qualify provided the Subsidiary Company / JV Company (as the case may be) associates and has a Technology Transfer agreement with a Generator Manufacturer who meets the requirements of clause 1.1.1 fully in respect of generator, hereinafter referred to as Qualified Generator Manufacturer.

The Qualified Generator Manufacturer shall maintain a minimum equity participation of 10 % in the Indian Subsidiary Company or the JV Company (as the case may be), for a lock-in period of 7 years from the date of incorporation of the Indian Subsidiary Company or JV Company (as the case may be) or up to the end of defect liability period of the contract whichever is later.

The Qualified Generator Manufacturer shall necessarily be one of the executants of DJU being submitted by the Bidder along with the techno-commercial bid as per clause 1.1.3 above, in which the Qualified Generator Manufacturer shall be liable to the Employer for successful performance of the generator and its auxiliaries as per the format enclosed in the bidding documents.

In case of award, the Qualified Generator Manufacturer shall be required to furnish, in addition to the bank guarantees required as per clause 1.1.3 above, a separate on demand bank guarantee for an amount of 0.5% of the total contract price of the Steam Turbine Generator Island Package in addition to the contract performance security to be furnished by the Bidder.

1.2.0 Route 2: Indian Steam Turbine Generator Manufacturer

1.2.1 The Bidder should be an Indian Steam Turbine Generator Manufacturing Company who have designed, engineered, manufactured/got manufactured, erected/ supervised erection, commissioned/ supervised commissioning of at least one (1) number of reheat type of steam turbine and generator set of 500 MW or above capacity and which should have been in successful operation for at least one (1) year prior to the date of techno-commercial bid opening.

Such Indian Steam Turbine Generator Manufacturing Company should have a valid ongoing collaboration and technology transfer agreement including license to manufacture and supply supercritical steam turbine generator sets covering the type, size and rating specified, in India with a Qualified Steam Turbine Generator Manufacturer meeting requirements of clause 1.1.1, valid minimum up to the end of the defect liability period of the contract.

1.2.2 The Bidder shall furnish a DJU executed by it and the Qualified Steam Turbine Generator Manufacturer, in which the executants of DJU shall be jointly and severally liable to the Employer for successful performance of the supercritical Steam Turbine Generator as per the format enclosed in bidding documents. The Deed of Joint Undertaking shall be submitted along with techno-commercial bid, failing which the Bidder shall be disqualified and its bid shall be rejected.

In case of award, the Qualified Steam Turbine Generator Manufacturer will be required to furnish an on demand bank guarantee for an amount of 1.5% of the total contract price of the Steam Turbine Generator Island Package in addition to the contract performance security to be furnished by the Bidder.

1.2.3 The Bidder who has a valid ongoing collaboration and technology transfer agreement with a super critical steam turbine manufacturer who meets the requirements of clause 1.1.1 except for generator would also qualify provided the Bidder associates and has a Technology Transfer agreement with a Generator Manufacturer who meets the requirements of clause 1.1.1 fully in respect of generator.

The Qualified Generator Manufacturer shall necessarily be one of the executants of DJU being submitted by the Bidder along with the techno-commercial bid as per clause 1.2.2 above, in which the Qualified Generator Manufacturer shall be liable to the Employer for successful performance of the generator and its auxiliaries as per the format enclosed in the bidding documents.

In case of award the super critical steam turbine manufacturer and the Qualified Generator Manufacturer shall be required to furnish on demand bank guarantees for an amount of 1.0% and 0.5% respectively of the total contract price of the Steam Turbine Generator Island Package, in addition to the contract performance security to be furnished by the Bidder.

1.3.0 Route 3: Indian Subsidiary Company of a Qualified Steam Turbine Generator Manufacturer

1.3.1 The Bidder shall be an Indian Subsidiary Company of a Qualified Steam Turbine Generator Manufacturer meeting requirements of clause 1.1.1, registered in India under the Companies Act of India, as on the date of techno-commercial bid opening, for manufacturing supercritical Steam Turbine Generator sets covering the type, size and rating specified. If the Subsidiary Company is incorporated as a public limited Company then it should have obtained certificate for Commencement of Business in India as on the date of techno-commercial bid opening.

The subsidiary Company shall remain a subsidiary Company of the Qualified Steam Turbine Generator Manufacturer for a minimum period of 7 years from the date of incorporation of such Subsidiary Company or up to the end of the defect liability period of the contract whichever is later.

1.3.2 The Bidder shall furnish a DJU executed by it, the Qualified Steam Turbine Generator Manufacturer and other promoter (if any) having 25% or higher equity participation in the Subsidiary Company, in which the executants of DJU shall be jointly and severally liable to the Employer for successful performance of the contract for the scope related to Steam Turbine Generator and Auxiliaries including turbine cycle, regenerative feed heating and pumping system as per the format enclosed in bidding documents. The Deed of Joint Undertaking should be submitted along with the techno-commercial bid, failing which the Bidder shall be disqualified and its bid shall be rejected.

In case of award, each promoter of the Subsidiary Company having 25% or higher equity participation in the Subsidiary Company will be required to furnish an on demand bank guarantee for an amount of 0.5% of the total contract price of the Steam Turbine Generator Island Package in addition to the contract performance security to be furnished by the Bidder.

1.3.3 In case the Bidder is an Indian Subsidiary Company of a super critical steam turbine manufacturer as its promoter meeting the requirements of clause 1.1.1 except for generator would also qualify provided the Subsidiary Company associates and has a Technology Transfer agreement with a Generator Manufacturer who meets the requirements of clause 1.1.1 fully in respect of generator.

The Qualified Generator Manufacturer shall maintain a minimum equity participation of 10 % in the Indian Subsidiary Company for a lock-in period of 7 years from the date of incorporation of the Indian Subsidiary Company or up to the end of defect liability period of the contract, whichever is later.

The Qualified Generator Manufacturer shall necessarily be one of the executants of DJU being submitted by the Bidder along with the techno-commercial bid as per clause 1.3.2 above, in which the Qualified Generator Manufacturer shall be liable to the Employer for successful performance of the generator and its auxiliaries as per the format enclosed in the bidding documents.

In case of award, the Qualified Generator Manufacturer shall be required to furnish, in addition to the bank guarantees required as per clause 1.3.2 above, a separate on demand bank guarantee for an amount of 0.5% of the total contract price of the Steam Turbine Generator Island Package in addition to the contract performance security to be furnished by the Bidder.

1.4.0 Route 4: Indian Joint Venture (JV) Company for manufacturing of Super Critical Steam Turbine Generator in India between an Indian Company and a Qualified Steam Turbine Generator Manufacturer

1.4.1 The Bidder should be a Joint Venture (JV) Company incorporated in India under the Companies Act of India, as on the date of techno-commercial bid opening, promoted by (i) an Indian Company registered in India under the Companies Act of India and (ii) a Qualified Steam Turbine Generator Manufacturer meeting requirements of clause 1.1.1, created for the purpose of manufacturing in India supercritical steam turbine generator sets covering the type, size and rating specified. If the JV Company is incorporated as a public limited Company then it should have obtained certificate for Commencement of Business in India as on the date of techno-commercial bid opening.

The Qualified Steam Turbine Generator Manufacturer shall maintain a minimum equity participation of 26% in the JV Company for a lock-in period of 7 years from the date of incorporation of JV Company or up to the end of the defect liability period of the contract whichever is later.

One of the promoters shall be a majority stakeholder who shall maintain a minimum equity participation of 51% in the JV Company for a lock in period of 7 years from the date of incorporation of JV Company or up to the end of the defect liability period of the contract whichever is later.

In the event that the majority stake holder in the JV Company is an entity other than the Qualified Steam Turbine Generator Manufacturer, it should be an Indian Company and should have executed, in the last 10 years, large industrial projects on EPC basis (with or without civil works) in the area of power, steel, oil & gas, petro-chemical, fertilizer and / or any other process industry with the total value of such projects being Rs.10000 million or more. At least one of such projects should have a contract value of Rs.4000 million or more. These projects should have been in successful operation for a period of not less than one year prior to the date of techno-commercial bid opening.

1.4.2 The Bidder shall furnish a DJU executed by it, the Qualified Steam Turbine Generator Manufacturer and other JV promoter having 25% or higher equity participation in the JV Company, in which all the executants of DJU shall be jointly and severally liable to the Employer for successful performance of contract for the scope related to Steam Turbine Generator and Auxiliaries including turbine cycle, regenerative feed heating and pumping system as per the format enclosed in the bidding documents. The joint deed of undertaking should be submitted along with techno-commercial bid, failing which the Bidder shall be disqualified and its bid shall be rejected.

In case of award, each promoter having 25% or higher equity participation in the JV Company will be required to furnish an on demand bank guarantee for an amount of 0.5% of the total contract price of the Steam Turbine Generator Island Package in addition to the contract performance security to be furnished by the Bidder.

1.4.3 In case the Bidder is an Indian Joint Venture Company with a super critical steam turbine manufacturer as one of the promoters meeting the requirements of clause 1.1.1 except for generator would also qualify provided the JV Company associates and have a Technology Transfer agreement with a Generator Manufacturer who meets the requirements of clause 1.1.1 fully in respect of generator.

The Qualified Generator Manufacturer shall maintain a minimum equity participation of 10 % in the Indian JV Company, for a lock-in period of 7 years from the date of incorporation of the Indian JV Company or up to the end of defect liability period of the contract whichever is later.

The Qualified Generator Manufacturer shall necessarily be one of the executants of DJU being submitted by the Bidder along with the techno-commercial bid as per clause 1.4.2 above, in which the Qualified Generator Manufacturer shall be liable to the Employer for successful performance of the generator and its auxiliaries as per the format enclosed in the bidding documents.

In case of award, the Qualified Generator Manufacturer shall be required to furnish, in addition to the bank guarantees required as per clause 1.4.2 above, a separate on demand bank guarantee for an amount of 0.5% of the total contract price of the Steam Turbine Generator Island Package in addition to the contract performance security to be furnished by the Bidder.

1.5.0 Route 5: Indian JV Promoter holding at least 51% equity in a Joint Venture Company for manufacturing Super Critical Steam Turbine Generator sets in India between an Indian Company and a Qualified Steam Turbine Generator Manufacturer

1.5.1 The Bidder shall be Indian Promoter with majority stake holding in a Joint Venture Company incorporated in India under the Companies Act of India as on the date of techno-commercial bid opening, promoted by (i) a Company registered in India under the Companies Act of India and (ii) a Qualified Steam Turbine Generator Manufacturer meeting requirements of clause 1.1.1, created for the purpose of manufacturing supercritical steam turbine generator sets in India, covering the type, size and rating specified. If the JV Company is incorporated as a public limited Company then it should have obtained certificate for Commencement of Business in India as on the date of techno-commercial bid opening.

The Qualified Steam Turbine Generator Manufacturer shall maintain a minimum equity participation of 26% in the JV Company for a lock-in period of 7 years from the date of incorporation of JV Company or up to the end of the defect liability period of the contract whichever is later.

The Indian majority stakeholder shall maintain a minimum equity participation of 51% in the JV Company for a lock in period of 7 years from the date of incorporation of JV Company or up to the end of the defect liability period of the contract whichever is later.

The Indian majority stake holder of the JV Company should have executed in the last 10 years large industrial projects on EPC basis (with or without civil works) in the area of power, steel, oil & gas, petro-chemical, fertilizer and / or any other process industry with the total value of such projects being Rs.10000 million or more. At least one of such projects should have a contract value of Rs. 4000 million or more. These projects should have been in successful operation for a period of not less than one year prior to the date of techno-commercial bid opening.

1.5.2 The Bidder should furnish a DJU executed by it, the JV Company and the Qualified Steam Turbine Generator Manufacturer, in which all the executants of DJU shall be jointly and severally liable to the Employer for successful performance of the contract for the scope related to Steam Turbine Generator and Auxiliaries including turbine cycle, regenerative feed heating and pumping system as per the format enclosed in the bidding documents. The Deed of Joint Undertaking should be submitted along with techno-commercial bid, failing which the Bidder shall be disqualified and its bid shall be rejected.

In case of award, the JV Company and the Qualified Steam Turbine Generator Manufacturer will each be required to furnish an on demand bank guarantee for an amount of 0.5% of the total contract price of the Steam Turbine Generator Island Package in addition to the contract performance security to be furnished by the Bidder.

1.5.3 In case the Indian Joint Venture Company of the Bidder has a super critical steam turbine manufacturer as one of its promoters, who meets the requirements of clause 1.1.1 except for generator would also qualify provided the JV Company associates and have a Technology Transfer agreement with a Generator Manufacturer who meets the requirements of clause 1.1.1 fully in respect of generator.

The Qualified Generator Manufacturer should maintain a minimum equity participation of 10 % in the Indian JV Company, for a lock-in period of 7 years from the date of incorporation of the Indian JV Company or up to the end of defect liability period of the contract whichever is later.

The Qualified Generator Manufacturer shall necessarily be one of the executants of DJU being submitted by the Bidder along with the techno-commercial bid as per clause 1.5.2 above, in which the Qualified Generator Manufacturer shall be liable to the Employer for successful performance of the generator and its auxiliaries as per the format enclosed in the bidding documents.

In case of award, the Qualified Generator Manufacturer shall be required to furnish, in addition to the bank guarantees required as per clause 1.5.2 above, a separate on demand bank guarantee for an amount of 0.5% of the total contract price of the Steam Turbine Generator Island Package in addition to the contract performance security to be furnished by the Bidder.

Notes for clause 1.0.0

(1) Definitions

(i) “Qualified Steam Turbine Generator Manufacturer” (QSTGM) means a manufacturer meeting requirements stipulated at 1.1.1.

(ii) Wherever “Indian Manufacturing Company” is indicated, the same shall mean a Subsidiary Company or a Joint Venture Company or an Indian Steam Turbine Generator Manufacturing Company registered in India under the Companies Act of India or as per the prevailing laws of India.

(2) Erection/Commissioning

Where erection / supervision of erection and commissioning / supervision of commissioning has not been in the scope of the Bidder as mentioned in clause 1.1.0 & 1.2.0, it should have acted as an advisor for erection and commissioning of the Steam Turbine & Generator. Necessary documents / certificates from the client, in support of above shall be furnished along with the techno-commercial bid.

(3) Direct / Indirect order

i) The Bidder / Qualified Steam Turbine Generator Manufacturer / Qualified Generator Manufacturer shall also be considered qualified, in case the award for the reference works (Turbine and generator) has been received by the Bidder / Qualified Steam Turbine Generator Manufacturer / Qualified Generator Manufacturer either directly from owner of plant or any other intermediary organization. A certificate from such owner of plant or the intermediary organization shall be required to be furnished by the Bidder / Qualified Steam Turbine Generator Manufacturer / Qualified Generator Manufacturer along with its techno-commercial bid in support of its claim of meeting requirement stipulated at 1.1.1, 1.1.4, 1.2.1 and 1.2.3 above as the case may be.

ii) Certificate from owner of the plant shall also be furnished by the Bidder / Qualified Steam Turbine Generator Manufacturer for the successful operation of the turbine generator set as specified at requirement stipulated at 1.1.1, 1.1.4, 1.2.1 and 1.2.3 above as the case may be along with the techno-commercial bid.

(4) Holding Company as a Qualified Steam Turbine Generator Manufacturer

(i) A Holding Company, singularly or collectively along with its Subsidiaries (held either directly or indirectly), meeting the requirements of clause 1.1.1 above, and also owning the technology for supercritical steam turbine generators, shall also be considered as Qualified Steam Turbine Generator Manufacturer. However, in such a case either the Indian subsidiary Company created for manufacturing of supercritical steam turbine generators in India shall be a subsidiary of the Holding Company or the Holding Company shall maintain a minimum equity of 26% in the Joint Venture Company, created for manufacturing of supercritical steam turbine generators in India.

(ii) In such a case, the Holding Company and all such subsidiaries lending strength / experience to the Holding Company shall necessarily be part of the DJU being submitted by the Bidder for successful performance of the contract for the scope related to Steam Turbine Generator and Auxiliaries including turbine cycle, regenerative feed heating and pumping system as per the format enclosed in bidding documents.

In case of award, if the Holding Company itself is not the Bidder as a Qualified Steam Turbine Generator Manufacturer, the Holding Company and all such entities lending strength / experience to the Holding Company shall each be required to furnish separate on demand bank guarantees for an amount aggregating 1.0% of the total contract price of the Steam Turbine Generator Island Package divided equally among them, in addition to the contract performance security to be furnished by the Bidder. This bank guarantee requirement shall supersede bank guarantee requirement stipulated at clause 1.3.0, 1.4.0 & 1.5.0 for the Qualified Steam Turbine Generator Manufacturer.

However, in case the Holding Company itself is the Bidder as a Qualified Steam Turbine Generator Manufacturer as per clause 1.1.0, Bidder should submit its board resolution stating that in case of any likely change of management control of any of these subsidiaries, the bidder shall arrange for separate on demand bank guarantees from all such entities lending strength / experience to the Holding Company for fulfillment of requirement of clause 1.1.1 for an amount aggregating 1.0% of the total contract price of the Steam Turbine Generator Island Package divided equally among them before the change in management control actually occurs.

(iii) As an alternative to the requirements of Note 4(ii) above, the Holding Company, as a Qualified Steam Turbine Generator Manufacturer, shall necessarily be part of the DJU to be submitted by the Bidder for successful performance of the contract for the scope related to Steam Turbine Generator and Auxiliaries including turbine cycle, regenerative feed heating and pumping system as per the format enclosed in bidding documents. However, the Bidder shall submit a board resolution of the Holding Company stating that in case of any likely change of management control of any of these subsidiaries, the Holding Company shall arrange for signing of DJU by all such subsidiaries lending strength / experience to the Holding Company for fulfillment of requirement of clause 1.1.1, in line with the requirements of Note 4(ii) above before the change in management control actually occurs.

In case of award, if the Holding Company itself is not the Bidder as a Qualified Steam Turbine Generator Manufacturer, the Holding Company shall be required to furnish separate on demand bank guarantee for an amount of 1.0% of the total contract price of the Steam Turbine Generator Island Package, in addition to the contract performance security to be furnished by the Bidder. This bank guarantee requirement shall supersede bank guarantee requirement stipulated at clause 1.3.0, 1.4.0 & 1.5.0 for the Qualified Steam Turbine Generator Manufacturer. In case of any likely change of management control of any of its subsidiaries lending strength/ experience, the Holding Company shall arrange for signing of DJU and bank guarantees from all such subsidiaries lending strength / experience to the Holding Company for fulfillment of requirement of clause 1.1.1, in line with Note 4(ii) above before the change in management control actually occurs, in addition to the bank guarantee already furnished by the Holding Company.

However, in case the Holding Company itself is the Bidder as a Qualified Steam Turbine Generator Manufacturer as per clause 1.1.0, and anticipates change of management control of any of its subsidiaries lending strength/ experience for fulfillment of requirement of clause 1.1.1, the Holding Company shall arrange for signing of DJU and bank guarantees from all such subsidiaries lending strength / experience to the Holding Company for fulfillment of requirement of clause 1.1.1, in line with Note 4(ii) above before the change in management control actually occurs, in addition to the bank guarantee already furnished by the Holding Company.

(5) For clause 1.4.0

In case the Indian majority stake holder of the JV Company does not have requisite EPC experience as mentioned at clause 1.4.1 above, it may still be considered qualified if it is wholly owned by a parent company who fully meets the requisite EPC experience provided the parent company maintains its 100% equity in such wholly owned subsidiary for a lock in period of 7 years from the date of incorporation of JV Company or up to the end of the defect liability period of the contract whichever is later.

In such a case, the parent company mentioned above shall necessarily be part of DJU being submitted by the Bidder.

In case of award, the parent Company shall be required to furnish an on demand bank guarantee for an amount of 0.5% of total contract price of the Steam Turbine Generator Island package in addition to the bank guarantee requirement indicated at clause 1.4.2 and 1.4.3.

(6) For clause 1.5.0

Majority stake in JV Company can be held either directly by the Bidder or through its wholly owned subsidiary provided the Bidder maintains its 100% equity in such wholly owned subsidiary for a lock in period of 7 years from the date of incorporation of JV Company or up to the end of the defect liability period of the contract whichever is later.

In case majority stake in the JV Company is held by wholly owned subsidiary of the Bidder then such wholly owned subsidiary shall necessarily be part of DJU being submitted by the Bidder.

In case of award the wholly owned subsidiary as mentioned above shall be required to furnish an on demand bank guarantee for an amount of 0.5% of total contract price of Steam Turbine Generator Island package in addition to the bank guarantee requirement at clause 1.5.2 and 1.5.3.

(7) For clause 1.1.0, 1.3.0, 1.4.0 & 1.5.0

The manufacturing may, alternatively, be carried out by another subsidiary registered for manufacturing supercritical turbine generator in India of the above Indian subsidiary / JV Company. In such an event, the manufacturing Company shall remain a subsidiary of the Indian subsidiary / JV Company with equity lock in for a minimum lock in period of 7 years from the date of incorporation of the manufacturing Company or up to the end of the defect liability period of the contract, whichever is later.

In such a case the manufacturing Company shall necessarily be part of DJU being submitted by the Bidder.

In case of award the manufacturing Company shall be required to furnish an on demand bank guarantee for an amount of 0.5% of total contract price of Steam Turbine Generator Island package in addition to the bank guarantee requirement at clause 1.1.3, 1.1.4 1.3.2, 1.3.3 1.4.2, 1.4.3 and 1.5.2, 1.5.3.

(8) Equity lock in period

Wherever equity lock in period requirement or subsidiary status requirement is indicated, the Bidder would be required to furnish along with its techno-commercial bid, a Letter of Undertaking from the promoter(s) supported by Board Resolution as per the format enclosed in the bid documents, for maintaining required minimum equity for the lock in period mentioned / maintaining the subsidiary status.

(9) For clause 1.2.0

“Steam Turbine Generator” indicated at clause 1.2.2 shall mean Steam Turbine, Generator and their auxiliaries as included in the DJU formats included in the bidding documents.

(10) For clause 1.1.0,1.3.0,1.4.0,1.5.0

“for the scope related to Steam Turbine Generator and Auxiliaries including turbine cycle, regenerative feed heating and pumping system” indicated at clause 1.1.3, 1.3.2, 1.4.2, 1.5.2 shall mean Steam Turbine Generator and their Auxiliaries including turbine cycle, regenerative feed heating and pumping system as included in the DJU formats included in the bidding documents.

2.0.0 Financial Criteria:

2.1.0 Financial Criteria for the Bidder

2.1.1 The average annual turnover of the Bidder, in the preceding three (3) financial years as on the date of techno-commercial bid opening, should not be less than 4335 Million (Rupees Four Thousand Three Hundred Thirty Five Million only) or in equivalent foreign currency.

2.1.2 The Net Worth of the Bidder as on the last day of the preceding financial year as on the date of techno commercial bid opening should not be less than 25% of its paid-up share capital.

2.1.3 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 furnishes the following further documents on substantiation of its qualification:

(i) Copies of the unaudited unconsolidated financial statements of the Bidder alongwith copies of the audited consolidated financial statements of its Holding Company.

(ii) A Certificate from the CEO/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 cases where audited results for the last preceding financial year as on the date of techno commercial bid opening are not available, certification of financial statements from a practicing Chartered Accountant shall also be considered acceptable.

2.1.4 In case any “Bidder” does not satisfy the financial criteria, stipulated at Cl. 2.1.1 and / or 2.1.2 above on its own, its Holding Company would be required to meet the stipulated turnover requirements at Cl 2.1.1, provided that the net worth of such Holding Company as on the last day of the preceding financial year is at least equal to or more than the paid-up share capital of the Holding Company. In such an event, the Bidder would be required to furnish along with its techno-commercial bid, a Letter of Undertaking from the Holding Company, supported by Board Resolution, as per the format enclosed in the bid documents, pledging unconditional and irrevocable financial support for the execution of the Contract by the Bidder in case of award.

2.1.5 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 the Bankers should not be less than 5843 Million (Rupees Five Thousand Eight Hundred Forty Three Million only) or in equivalent foreign currency. In case certificates from more than one bank are submitted, the certified unutilized limits shall be of the same date from all such banks.

2.1.6 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 its bankers’, the Bidder shall have access to the line of credit of a level not less than the specified amount at Cl. 2.1.5 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.

2.1.7 In case the Bidder’s unutilized line of credit for fund based and non-fund based limits specified at Cl. 2.1.5 above is not sufficient, a comfort letter from one of the bankers specified in the bid 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.

2.2.0 Financial Criteria for the Collaborator(s) / Associate(s)

2.2.1 The average annual turnover of the each collaborator/Associate, in the preceding three (3) financial years as on the date of techno-commercial bid opening, should not be less than the following for different Collaborators(s)/ Associate(s) as applicable

2.2.2 The Net Worth of each Collaborator(s) / Associate(s) as on the last day of the preceding financial year should not be less than 25% of its paid-up share capital.

2.2.3 In case the Collaborator(s) / Associate(s) is not able to furnish its audited financial statements on stand alone entity basis, the unaudited unconsolidated financial statements of the Collaborator(s) / Associate(s) can be considered acceptable provided the Collaborator(s) / Associate(s) furnishes the following further documents on substantiation of its qualification:

(i) Copies of the unaudited unconsolidated financial statements of the Collaborator(s) / Associate(s) along with copies of the audited consolidated financial statements of the Holding Company of Collaborator(s) / Associate(s).

(ii) A Certificate from the CEO/CFO of the Holding Company, as per the format enclosed in the bid documents, stating that the unaudited unconsolidated financial statements form part of the Consolidated Annual Report of the Company.

In cases 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.

2.2.4 In case a Collaborator(s) / Associate(s) does not satisfy the financial criteria, stipulated at Cl.2.2.1 and / or 2.2.2 above on its own, its Holding Company would be required to meet the stipulated turnover requirements at Cl 2.2.1 above, provided that the net worth of such Holding Company, as on the last day of the preceding financial year is at least equal to or more than the paid-up share capital of the Holding Company. In such an event, the Collaborator(s) / Associate(s) would be required to furnish along with its techno-commercial bid, a Letter of Undertaking from the Holding Company, supported by Board Resolution (as per the format enclosed in the bidding documents) pledging unconditional and irrevocable financial support to the Collaborator(s) / Associate(s) to honor the terms and conditions of the Deed of Joint Undertaking, in case of award.

2.2.5 The unutilized line of credit for fund based and non-fund based limits with cash and bank balances including fixed deposits of the Collaborator(s) / Associate(s) as on a date not earlier than 15 days prior to the date of techno-commercial bid opening, duly certified by the Bankers should not be less than the following for different Collaborator(s) / Associate(s) in terms of Deed of Joint Undertaking:

In case certificates from more than one bank are submitted, the certified unutilized limits shall be of the same date from all such banks.

2.2.6 Where another Company of the group acting as the Treasury Centre is responsible for Treasury Management of the Collaborator(s) / Associate(s) having combined credit/guarantee limit for the whole group, the Collaborator(s) / Associate(s) 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 its bankers’, the Collaborator(s) / Associate(s) shall have access to the line of credit of a level not less than the amount specified at Cl. 2.2.5 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 Collaborator / Associate’s holding Company, as per the format enclosed in the bidding documents, pledging unconditional and irrevocable financial support to the Collaborator(s) / Associate(s) to honor the terms and conditions of the Deed of Joint undertaking, in case of award of the contract to the Bidder with whom Collaborator(s) / Associate(s) is associated.

2.2.7 In case the Collaborator / Associate’s unutilized line of credit for fund based and non-fund based limits specified at Cl. 2.2.5 above is not sufficient, a comfort letter from one of the bankers specified in the bidding documents unequivocally stating that in case of award of the contract to the Bidder with whom Collaborator(s) / Associate(s) is associated, the Bank would enhance line of credit for fund based and non-fund based limits to a level not less than the specified amounts to the Collaborator(s) / Associate(s) or to the Treasury Management Centre as the case may be, shall be acceptable.

NOTES:

(i) 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.

(ii) Other income shall not be considered for arriving at annual turnover.

(iii) For unutilized line of credit for fund based and non-fund based limits and Turnover indicated in foreign currency, the exchange rate as on 7 days prior to the date of techno-commercial bid opening shall be used.

(iv) "Holding Company" and "Subsidiary Company" shall have the meaning ascribed to them as per Companies Act of India.

(v) In case of bids submitted under Clause 1.3.0 or 1.4.0, the combined Turnover and Un-Utilised Line of Credit of the Promoter(s) (each having Equity Stake more than 25%) of the bidding Subsidiary Company / JV Company would be considered. Each such promoter of the Subsidiary Company / JV Company shall have to meet the Net Worth criteria individually as per clause 2.1.2 and/or 2.2.2. In such an event the Bidder would be required to furnish along with its techno-commercial bid, a Letter of Undertaking from such promoters(s), supported by Board Resolution as per the format enclosed in the bidding documents, pledging unconditional and irrevocable financial support for execution of the Contract by the Bidder in case of award.

3.0.0 Phased Manufacturing Program and Transfer of Technology

3.1.0 The Bidder shall give firm commitment in the form of an undertaking supported by board resolution to set up / augment the existing manufacturing facility for supercritical Steam Turbine Generator sets in India either by itself or through its subsidiaries or through Joint Venture (JV) in India in a phased manner as per Phased Manufacturing Program elaborated in the bidding documents.

The manufacturing may, alternatively, be carried out by another subsidiary registered for manufacturing supercritical steam turbine generators in India of the above Indian subsidiary / JV Company. In such an event, the manufacturing Company shall remain a subsidiary of the Indian subsidiary / JV Company with equity lock in for a minimum lock in period of 7 years from the date of incorporation of the manufacturing Company or up to the end of the defect liability period of the contract, whichever is later.

In case of award the Bidder shall submit an on demand bank guarantee of INR 650 Millions for Steam Turbine Generator Island Package as security for any default against meeting the specified Phased Manufacturing Program.

3.2.0 A valid technology transfer agreement including license to manufacture and supply in India between the Qualified Steam Turbine Generator Manufacturer, or its technology provider (if any) and the Indian Manufacturing Company should be in place on the date of techno-commercial bid opening covering the type, size and rating of the Steam Turbine Generator sets specified, valid minimum up to the end of the defect liability period of the contract. The signatory of the technology transfer agreement with the Indian Manufacturing Company should either own the technology or should have authorization to use and further license the technology. Documentary evidence to this effect shall be furnished along with the techno-commercial bid. The technology transfer agreement shall necessarily cover transfer of technological know-how for super critical Steam Turbine Generator in the form of complete transfer of design dossier, design software(s), drawings and documentation, quality system manuals and imparting relevant personnel training to the Indian Manufacturing Company. Such technology transfer agreement must have provision that the transfer of technology to the Indian Manufacturing Company shall be completed by the time last 800 MW supercritical unit is supplied by the Bidder under this tender.

3.3.0 Major part (minimum 75%) of the land required for setting up manufacturing facility in India should be in possession with clear title either in the name of the “Indian Manufacturing Company” or its Indian promoter (but pledged / leased to the Subsidiary / JV Company) prior to submission of techno-commercial bid. In case, the Bidder has existing manufacturing facility in India, he should have in possession major part (minimum 75%) of the additional land required with clear title for augmenting his already existing manufacturing facility. "Clear title" shall be deemed to also include land acquired on long term lease basis for minimum 30 years with a provision for further extension.

3.4.0 Promoters of the Subsidiary / JV Company will be required to either employ a minimum subscribed and paid up share capital or have net worth of Rs. 500 million in the Subsidiary / JV Company prior to the submission of techno-commercial bid. In case the Bidder is selected for award of the contract, either a minimum subscribed and paid up share capital or net worth of Rs. 1000 million in the Subsidiary / JV Company will have to be ensured by the promoters prior to the date of award. In the event the Bidder fails to meet this requirement, the Employer shall disqualify such Bidder. The certificates from a practicing Chartered Accountant shall be submitted by the Bidder certifying the amount of subscribed and paid up share capital, or net worth as the case may be as on a date not earlier than 15 days from the date of techno-commercial bid opening or award date as applicable.

3.5.0 The Bidder shall be required to furnish an undertaking with regard to above as per the format enclosed with the bidding documents.

Note to clause 3.0.0

Bidders who have already given commitments for PMP and submitted bank guarantees for security for default against specified PMP for steam Turbine Generators to any Central / State sector power generating Company for supercritical projects shall not be required to furnish further bank guarantees for security for default against specified PMP.

7.0 NTPC 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.

8.0 A 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 favor 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.

8.1 The Bidding documents purchased either by STG manufacturer or Holding company of STG manufacturer or Indian JV Company of STG manufacturer or Indian Subsidiary Company of STG manufacturer or Indian Company who holds at least 51% equity in the Indian JV Company of STG manufacturer are transferable amongst them.

8.2 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.

10.0 Address for Communication

Sr. Manager (Contract Services-II)/

Manager (Contract Services-II),

NTPC Limited,

Sixth Floor, Engineering Office Complex,

A-8A, Sector-24, NOIDA,

Distt. Gautam Budh Nagar, (UP), INDIA

Pin - 201301

Fax No.: Fax: +91-120-2410284, 2410011, 2410013

Tel. No.: +91-120- 4946676/4946657

e-mail: abhishekjain02@ntpc.co.in, dineshkhandelwal@ntpc.co.in

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

CIN: L40101DL1975GOI007966