NTPC LIMITED

(A Govt. of India Enterprise)

CORPORATE CONTRACTS, NOIDA

INVITATION FOR BIDS (IFB)

FOR

DEVELOPMENT AND OPERATION OF CHATTI BARIATU COAL BLOCK, DISTRICT

HAZARIBAGH, STATE OF JHARKHAND, INDIA

(International Competitive Bidding)
IFB No .: 40053695	Date: 05.03.2016
Bidding Doc. No: CS-7011-602-9

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 Chatti Bariatu Coal Block, District Hazaribagh, State Of Jharkhand, India as per the Scope of Work mentioned hereinafter.

2.0Brief Scope of Work

The broad scope of work includes facilitation to acquire all the land, Supply-cum- installation-cum civil works of Cross Country Conveyor System, Construction of R&R Colony, providing all Manpower including Statutory Manpower, excavation of various rocks/earth cutting by mechanized means, mining of ROM coal, loading, transportation, dumping, dozing, 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 Mine end Coal Handling Plant, Equipment workshop, Power distribution arrangement from Main Receiving Station (MRS), electrical substations, statutory buildings & pumping arrangements etc., haul road maintenance, delivery of crushed coal to NTPC at the pre-determined delivery point 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:

	Documents Sale Dates & Timings	From 14.03.2016 to 11.04.2016
		(From 1000 Hrs to 1700 Hrs. (IST))
	Last Date of Receipt of Queries from
	Bidders and Pre Bid Conference Date	13.04.2016 at 1100 Hrs. (IST)
	& Time
	Last date for receipt of Bids
	[Both Techno-Commercial Proposal	04.05.2016 upto 1500 Hrs. (IST)
	(Envelope-I) and Price Proposal
	(Envelope-II)]
	Techno-Commercial Proposal	04.05.2016 at 1530 Hrs. (IST)
	(Envelope-I) Opening Date & Time
	Cost of Bidding Document	₹ 22,500/- (Indian Rupees Twenty Two
		Thousand Five Hundred only) per set for
		Indian Bidders and USD 500 (US Dollars
		Five Hundred only) per set for Foreign
		Bidders.
		Page 1 of 8

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

₹ 134,425,000 (Indian Rupees One Hundred Thirty Four Million Four Hundred Twenty Five Thousand only) in the form as stipulated in 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 RETURNED TO THE BIDDERS WITHOUT BEING OPENED.

5.0Qualifying Requirements

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

5.1. Technical Criteria

5.1.1.The Bidder should have, in the preceding 7 (seven) years reckoned from the date of opening of the Techno-commercial Bids developed & operated single coal / lignite mine having coal/lignite reserves of at least 150 million tonnes & annual capacity of at least 6 MTPA and produced at least 2 million tonnes of coal/lignite from such mine.

OR

5.1.2.The 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 17 Million BCM of aggregated volume of overburden and/ or coal/ lignite from a maximum of seven open cast mines of Coal / Lignite, in any year.

b)At least 8.5 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 clause 5.1.2(a) can be from same mine or different mines including the mine considered to meet qualifying requirement at clause 5.1.2(b).

5.2.Financial 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 4033 Million (Indian Rupees Four Thousand Thirty Three Million only) or in equivalent foreign currency; and

ii)The average annual cash accrual of the Bidder should not be less than INR 435 Million (Indian Rupees Four Hundred Thirty Five 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 clause 5.2(a) above should not be less than INR 2180 million (Indian Rupees Two Thousand one Hundred Eighty Million Only), or in equivalent foreign currency, which should be equal to or more than 100% of its paid up share capital.

Page 2 of 8

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 296 Million (Indian Rupees Two Hundred Ninety Six 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.

5.3.ROUTES

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 routes;

5.3.1. ROUTE – 1

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

5.3.2. ROUTE –2

i.In case a Bidder does not meet the requirement of clause 5.1 & 5.2 above on its own, it can quote on the basis of experience of its Subsidiary (ies) and /or Holding Company and/or Subsidiaries of its Holding Company. In such a case the consolidated experience of Bidder and its Subsidiary (ies) and/or Holding Company and/or Subsidiaries of its Holding company shall be considered, as applicable.

However, Bidder on its own should meet either Technical Criteria at clause 5.1, or financial criteria at Clause 5.2 above.

ii.The Bidder, who meets the requirements of clause 5.2 on its own and meets the requirement of Clause 5.1 above based on the strength / experience of its Subsidiary (ies) and/or Holding Company and/or Subsidiaries of its Holding company will be required to furnish a legally enforceable Joint Operating Agreement (JOA) executed

Page 3 of 8

between the Bidder and its Subsidiary (ies) and/or Holding Company and/or Subsidiaries of its Holding company extending experience / strength to the Bidder along with its Techno-commercial Bid, valid for at least 5 years, which will have to be extended till such time the mine achieves 85% of the contracted capacity of the project, as per the formats enclosed in the bidding documents. The number of executants of the JOA shall not exceed three including the Bidder. Further each of the executants of the JOA other than the Bidder shall be required to submit a performance guarantee equivalent to 1% of the estimated annual contract value towards the faithful performance of terms & conditions contained in JOA as per the format specified in the bidding documents. These performance guarantee(s) shall be in addition to the Contract Performance Guarantee to be submitted by the Bidder as per bidding documents and shall be kept valid and operative till 90 days after the expiry of the validity of JOA.

iii.The Bidder who meets the requirements of clause 5.1 on its own and meets the requirement of clause 5.2 based on the strength / experience of its Subsidiary (ies) and/or Holding Company and/or Subsidiaries of its Holding company will be required to furnish along with its Techno-commercial Bid, a Letter of Undertaking from the Subsidiary (ies) and/or Holding Company and/or Subsidiaries of its Holding company, supported by Board Resolution of such company(ies), 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. The number of such Subsidiary (ies) and/or Holding Company and/or Subsidiaries of its Holding company lending strength/experience to the Bidder shall not exceed three including the Bidder.

iv.Net worth of the Bidder and its Subsidiary (ies) and/or Holding Company and/or subsidiary(ies) of its Holding Company, lending strength /experience to the Bidder for meeting Technical or Financial Criteria, in combined manner, should be equal to or more than 100% of their total paid up share capital, as on the last date of the last financial year out of the three consecutive Financial Years, considered by bidder for meeting Financial Criteria. However, net worth of the Bidder and its Subsidiary (ies) and/or Holding Company and/or Subsidiary (ies) of its Holding Company, seeking qualification under this Route, 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.

5.3.3.ROUTE –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 clause 5.1 above. For Bidders who are qualified as per clause 5.1.2, requirement of clause 5.1.2 (b) should be met by at least 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.

Page 4 of 8

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) i.e 3.4 Million BCM of aggregated volume of overburden and/ or coal/ lignite from a maximum of seven open cast mines of Coal / Lignite, in any year. However the total number of mines to be considered for meeting the technical criteria at clause 5.1.2(a) collectively by all consortium members shall not exceed seven.

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 a legally enforceable Consortium Operating Agreement (COA) along with 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.

NOTES:

i.The word “operated” means that the Bidder should have performed the necessary activities of drilling, 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 (any one or more) from one or more opencast mines of minerals (maximum of seven 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

Page 5 of 8

viii.For criteria at clause 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 at clause 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 for substantiation of its qualification:

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

ii.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 Financial Statements 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 clause 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 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

Page 6 of 8

xiv.For clause 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.

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.

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.

Page 7 of 8

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.

8.0Address for communication:

AGM (CS-IV) / Dy. Manager (CS-IV) Contract Services-IV

NTPC Limited, 6th Floor, Engineering Office Complex,

Plot No.- A-8A, Sector-24, NOIDA (State of Uttar Pradesh) PIN - 201301

Ph.No:0120-4946667 / 4946648

Fax Nos. : + 91- 0120-2410215 / 2410011

Email: navinbagai@ntpc.co.in /rakeshagrawal@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

Page 8 of 8