DETAILED INVITATION FOR BIDS

NTPC LIMITED

(A GOVERNMENT OF INDIA ENTERPRISE)

CORPORATE CONTRACTS, NOIDA

INVITATION FOR BIDS (IFB)

FOR

FLUE GAS DESULPHURISATION (FGD) SYSTEM PACKAGE

FOR

TELANGANA SUPER THERMAL POWER PROJECT, PHASE-I (2x800 MW)

LOCATED AT

DISTRICT- KARIMNAGAR, STATE OF TELANGANA, INDIA

	(Domestic Competitive Bidding)
IFB No.: 40064151	Date: 07.10.2016

Bidding Document No.: CS-9591-109-9

1.0NTPC invites online Bids on ‘Two Stage’ bidding basis (Stage-I (Techno-Commercial) Bid & Stage-II (Price) Bid) from eligible Bidders for aforesaid Package, as per the Brief Scope of Work mentioned hereinafter.

2.0BRIEF SCOPE OF WORK

The scope includes design, engineering, manufacture, shop fabrication, preassembly, shop testing/type testing at manufacturer’s works, packing, transportation, unloading, handling and conservation of equipment at site, complete services of construction including erection, supervision, pre-commissioning, commissioning and performance testing of equipments under bidder’s scope of work of FGD System and its associated auxiliaries including all associated Electrical, Control & Instrumentation, Civil, Structural and Architecture works for Telangana STPP Phase-I (2x800MW).

The detailed scope of work shall be as per specifications and scope defined in the bidding document no. CS-9591-109-9 for Flue Gas Desulphurisation System Package of Telangana Super Thermal Power Project, Phase-I (2x800 MW).

3.0NTPC intends to finance subject Package through Domestic Commercial Borrowings/Own sources.

4.0Detailed 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:

	Issue of IFB			07.10.2016
	Sale of Bidding Documents			07.10.2016 to 04.11.2016 (up to 1730 hrs. IST)
	Last date for receipt of queries from bidders			11.11.2016
	(if any)
	Date & Time of Pre-Bid Conference			11.11.2016, 1500 hrs. (IST)
	Stage-I	(Techno-Commercial)	Bid	Up to 01.12.2016 by 1430 hrs. (IST)
	submission Date & Time
	Stage-I	(Techno-Commercial) Bid Opening		01.12.2016 at 1500 Hrs. (IST)
	Date & Time
TELANGANA SUPER THERMAL POWER PROJECT			FLUE GAS DESULPHURISATION (FGD) SYSTEM		PAGE 1 OF 8
	PHASE-I (2X800 MW)			PACKAGE
BIDDING DOCUMENT NO. CS-9591-109-9
				SECTION - I (IFB)

DETAILED INVITATION FOR BIDS

Stage-II (Price) Bid Receipt Date & Time	Shall be intimated separately by NTPC after
	opening of Stage-I (Techno-Commercial) Bid
Cost of Bidding Document	Rs 22,500/- (Rupees Twenty Two Thousand
	Five Hundred only)

4.1Prospective bidders from UP state are compulsorily required to provide TIN number at the time of purchase of Bidding Documents from the office of NTPC Ltd.

5.0All bids must be accompanied by Bid Security for an amount of INR 11,20,66,000/- (Indian Rupees Eleven Crore Twenty Lacs Sixty Six Thousand only) in the form as stipulated in the Bidding documents. Bid Security and Integrity Pact shall be submitted in a sealed envelope separately offline by the stipulated bid submission closing date and time at the address given below. Any bid not accompanied by an acceptable Bid Security and

Integrity Pact in separate sealed envelope shall be treated by the employer as non- responsive and shall not be opened.

6.0QUALIFYING REQUIREMENTS FOR BIDDERS.

In addition to the requirements stipulated in Section ITB (Instructions to Bidder), the following shall also apply.

6.1.0.0Technical Criteria

The Bidder should meet the qualifying requirements stipulated in any one of the qualifying routes i.e. Route-1 (clause 6.1.1.0) or Route-2 (clause 6.1.2.0) or Route-3 (clause 6.1.3.0) or Route-4 (clause 6.1.4.0) including requirements stipulated in sub clauses of respective Route. In addition, the Bidder should also meet the requirements stipulated under clause 6.2.0.0 together with the requirements stipulated under section ITB.

6.1.1.0Route-1: Qualified Wet Limestone based Flue Gas Desulphurisation (FGD) System Manufacturer (QFGDM)

6.1.1.1The Bidder should have designed, engineered, supplied, erected/supervised erection and commissioned/supervised commissioning of at least one(1) no. of wet limestone based Flue Gas Desulphurisation System , having flue gas treatment capacity of not less than 23,00,000 Nm3/hr, with desulphurisation efficiency of at least 90 %, operating in a pulverised coal fired power plant. The above wet limestone based Flue Gas Desulphurisation System should have been in successful operation for a period not less than one (1) year prior to the date of Techno-Commercial bid opening.

6.1.2.0Route-2: Wet Limestone based Flue Gas Desulphurisation System Manufacturer with Collaboration and Technology Transfer Agreement with QFGDM

6.1.2.1The Bidder should have designed, engineered, supplied, erected/supervised erection and commissioned/supervised commissioning of at least one(1) no. of wet limestone based Flue Gas Desulphurisation system having flue gas treatment capacity of not less than 6,00,000 Nm3/hr, with desulphurisation efficiency of at least 85%, operating in a pulverised coal fired power plant. The above wet limestone based Flue Gas Desulphurisation System should have been in successful operation for a period not less than one (1) year prior to the date of Techno-Commercial bid opening.

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	SECTION - I (IFB)

DETAILED INVITATION FOR BIDS

6.1.2.2Bidder should also have a valid ongoing collaboration and technology transfer agreement with a QFGDM meeting requirements of clause 6.1.1.1 on its own, valid minimum up to the end of the defect liability period of the contract. In such a case Bidder can either source the FGD System from such manufacturer or manufacture/get manufactured the FGD System as per the design and manufacturing drawings of such QFGDM.

6.1.2.3The Bidder shall furnish a Deed of Joint Undertaking (DJU) executed by it and the QFGDM, in which the executants of DJU shall be jointly and severally liable to the Employer for successful performance of the contract. The DJU shall be submitted along with techno- commercial bid, failing which the Bidder shall be disqualified and its bid shall be rejected.

6.1.2.4In case of award, the QFGDM will be required to furnish an on demand bank guarantee for an amount of 5% of the total contract price of the Flue Gas Desulphurisation System Package in addition to the contract performance security to be furnished by the Bidder.

6.1.3.0Route-3: Steam Generator Manufacturer / Indian JV company of Steam Generator manufacturer or QFGDM/ Indian Subsidiary company of Steam Generator manufacturer or QFGDM with Collaboration and Technology Transfer Agreement with

QFGDM

6.1.3.1(a) Bidder should have designed, engineered, manufactured/got manufactured, erected/ supervised erection and commissioned/supervised commissioning of least one (1) no. of pulverised coal fired steam generator for 200 MW or higher capacity unit or having minimum 600T/hr steaming capacity. Further, such Steam Generator should have been in successful operation for a period not less than one (1) year prior to the date of Techno-Commercial bid opening.

Alternatively

(b)The Bidder shall 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 Steam Generator Manufacturer meeting requirements of clause 6.1.3.1(a) or a QFGDM meeting requirements of clause 6.1.1.1, created for the purpose of manufacturing/supplying in India steam generator sets/Flue Gas Desulphurisation System. The Steam Generator Manufacturer/QFGDM 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 and 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 defect liability period of the contract whichever is later. Further, Bidder should have executed/executing orders, received in the last 5 years, with the total value of such projects being INR 5,000 million or more.

Alternatively

(c)The Bidder shall be an Indian Subsidiary Company of a Steam Generator Manufacturer meeting requirements of clause 6.1.3.1(a) or an Indian Subsidiary Company of a QFGDM meeting requirements of clause 6.1.1.1, registered in India under the Companies Act of India, as on the date of techno-commercial bid opening, for manufacturing/supply of Steam Generator sets/Flue Gas Desulphurisation System. The subsidiary Company shall remain a subsidiary company of the Steam Generator

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BIDDING DOCUMENT NO. CS-9591-109-9
	SECTION - I (IFB)

DETAILED INVITATION FOR BIDS

Manufacturer/QFGDM for a minimum period of 7 years from the date of incorporation of such Subsidiary Company or up to the end of defect liability period of the contract whichever is later. Further, Bidder should have executed/executing orders, received in the last 5 years, with the total value of such projects being INR 5,000 million or more.

6.1.3.2Bidder should also have a valid ongoing collaboration and technology transfer agreement with a QFGDM meeting requirements of clause 6.1.1.1, valid minimum up to the end of the defect liability period of the contract. In such a case Bidder can either source the FGD System from such manufacturer or manufacture/get manufactured the FGD System as per the design and manufacturing drawings of such QFGDM.

6.1.3.3The Bidder shall furnish a Deed of Joint Undertaking (DJU) executed by it, the promoter(s) having 25% or higher equity participation in the Subsidiary Company / JV Company (as the case may be) and the QFGDM, in which the executants of DJU shall be jointly and severally liable to the Employer for successful performance of the contract. The DJU shall be submitted along with techno-commercial bid, failing which the Bidder shall be disqualified and its bid shall be rejected.

6.1.3.4In case of award, the QFGDM will be required to furnish an on demand bank guarantee for an amount of 5% of the total contract price of the Flue Gas Desulphurisation System Package in addition to the contract performance security to be furnished by the Bidder.

6.1.4.0Route-4: EPC Organization with Collaboration and Technology Transfer Agreement with QFGDM

6.1.4.1The Bidder should be an Engineering, Procurement and Construction (EPC) organization 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, Flue Gas Desulphurisation and / or any other process industry with the total value of such projects being INR 5,000 million or more. At least one of such projects should have a contract value of INR 2,000 million or more. These projects shall be in successful operation for a period of not less than one (1) year prior to the date of Techno-Commercial bid opening.

6.1.4.2Bidder should also have a valid ongoing collaboration and technology transfer agreement with a QFGDM meeting requirements of clause 1.1.1, valid minimum up to the end of the defect liability period of the contract. In such a case Bidder can either source the FGD System from such manufacturer or manufacture/get manufactured the FGD System as per the design and manufacturing drawings released by such QFGDM.

6.1.4.3The Bidder shall furnish a Deed of Joint Undertaking (DJU) executed by it, the promoter(s) having 25% or higher equity participation in the Subsidiary Company / JV Company (in case applicable) and the QFGDM, in which the executants of DJU shall be jointly and severally liable to the Employer for successful performance of the contract. The DJU shall be submitted along with techno-commercial bid, failing which the Bidder shall be disqualified and its bid shall be rejected.

6.1.4.4In case of award, the QFGDM will be required to furnish an on demand bank guarantee for an amount of 5% of the total contract price of the Flue Gas Desulphurisation System Package in addition to the contract performance security to be furnished by the Bidder.

Notes for clause 6.1.0.0

(1)Definitions

(i)“QFGDM" (Qualified Wet Limestone based Flue Gas Desulphurisation System

Manufacturer) means a manufacturer meeting requirements stipulated at 1.1.1.

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	SECTION - I (IFB)

DETAILED INVITATION FOR BIDS

(ii)Whenever the term 'coal fired' is appearing above, "Coal" shall be deemed to also include bituminous coal/brown coal/lignite.

(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 6.1.1.1, 6.1.2.1 & 6.1.3.1 (a), the Bidder should have acted as an advisor for erection and commissioning. Necessary documents / certificates from the client, in support of above shall be furnished along with the Techno-Commercial bid.

(3)Direct / Indirect order

The Bidder/ QFGDM shall also be considered qualified, in case the award for executing the reference works has been received by the Bidder either directly from owner of plant or any other intermediary organization. However, a certificate from such owner of plant or any other intermediary organization shall be required to be furnished by the Bidder along with its Techno-Commercial bid in support of the Bidder's/ QFGDM

claim of meeting the qualification requirement as per clause 6.1.1.1, 6.1.2.1, 6.1.3.1(a) & 6.1.4.1 above. Further, certificate from owner of the plant shall also be furnished by the Bidder along with the Techno-Commercial bid for the successful operation as specified at clause 6.1.1.1, 6.1.2.1, 6.1.3.1(a) & 6.1.4.1 above.

(4)Holding Company as a Qualified Wet Limestone based Flue Gas Desulphurisation system Manufacturer

(i)A Holding Company, singularly or collectively along with its Subsidiaries (held either directly or indirectly), meeting the requirements of clause 6.1.1.1 above shall also be considered as QFGDM.

(ii)In such a case, if the Holding Company itself is not the Bidder as a QFGDM, the Holding Company and all such subsidiaries lending strength / experience to the Holding Company for meeting the requirements of clause 6.1.1.1 above should necessarily be part of the DJU being submitted by the Bidder for successful performance of the contract as per format enclosed with the bidding documents, failing which the bidder shall be disqualified and its bid rejected. Further, the Holding Company and all such entities lending strength / experience to the Holding Company for meeting the requirements of clause 6.1.1.1 above shall each be required to furnish separate on demand bank guarantees as per the format enclosed with the bidding documents for an amount aggregating 5 % of the total contract price of the Flue Gas Desulphurisation System 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 6.1.2.4, 6.1.3.4 & 6.1.4.4 for the

QFGDM.

(iii)In case the Holding Company itself is the Bidder as a QFGDM as per clause 6.1.1.1, the Holding Company shall submit its board resolution stating that in case of any likely change of management control of any of these subsidiaries lending strength / experience to the Holding Company for meeting the requirements of clause 6.1.1.1 above , the Bidder shall arrange for separate on demand bank guarantees as per the format enclosed with the bidding documents from all such entities lending strength / experience to the Holding Company for

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	SECTION - I (IFB)

DETAILED INVITATION FOR BIDS

fulfillment of requirement of clause 6.1.1.1, above for an amount aggregating 5 % of the total contract price of the Flue Gas Desulphurisation System Package divided equally among them, in addition to the contract performance security to be furnished by the Bidder before the change in management control actually occurs.

(5)Technology Transfer Agreement (Applicable for Clause 6.1.2.0, 6.1.3.0 & 6.1.4.0)

The technology transfer agreement between the Bidder & QFGDM shall necessarily cover transfer of technological knowhow for Wet Limestone based Flue Gas Desulphurisation System 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.

6.2.0.0Financial Criteria

6.2.1.0Financial Criteria of Bidder

6.2.1.1The 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 INR 2077 Million (Indian Rupees Two thousand seventy seven Million only) or in equivalent foreign currency.

In case a Bidder does not satisfy the average annual turnover criteria, stipulated above on its own, its Holding Company would be required to meet the stipulated turnover requirements as 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 Bidder would be required to furnish along with its Techno-Commercial bid, a Letter of Undertaking from the Holding Company, supported by the Holding Company’s 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.

6.2.1.2Net worth of the bidder should not be less than 100% (hundred percent) of its paid up share capital as on the last day of the preceding financial year on the date of Techno-commercial bid opening. In case the Bidder does not meet the Net worth criteria on its own, it can meet the requirement of Net worth based on the strength of its Subsidiary(ies) and/or Holding Company and/or Subsidiaries of its Holding company wherever applicable. In such a case, however the Net worth of the Bidder and its Subsidiary(ies) and/or Holding Company and/or Subsidiary(ies) of the Holding Company, in combined manner should not be less than 100% (hundred percent) of their total paid up share capital. However individually, their Net worth should not be less than 75% (seventy five percent) of their respective paid up share capitals. For Consortiums/Joint Ventures , the Net worth of all Consortium/Joint Venture members in combined manner should not be less than 100% (hundred percent) of their paid up share capital however individually, their Net worth should not be less than 75% (seventy five percent) of their respective paid up share capitals.

Net worth in combined manner shall be calculated as follows: Net worth (combined) = (X1+X2+X3) / (Y1+Y2+Y3) X 100

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DETAILED INVITATION FOR BIDS

Where X1, X2, X3 are individual Net worth which should not be less than 75% of the respective paid up share capitals and Y1,Y2,Y3 are individual paid up share capitals.

6.2.1.3In case the Bidder is not able to furnish its audited financial statements on standalone 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 CEO/CFO of the Holding Company, as per the format enclosed with the bidding documents, stating that the unaudited unconsolidated financial statements form part of the consolidated financial statements of the Holding Company.

In cases where audited results for the last financial year as on the date of Techno Commercial bid opening are not available, the financial results certified by a practicing Chartered Accountant shall be considered acceptable. In case, Bidder is not able to submit the Certificate from a practicing Chartered Accountant certifying its financial parameters, the audited results of three consecutive financial years preceding the last financial year shall be considered for evaluating the financial parameters. Further, a Certificate would be required from the CEO/CFO as per the format enclosed in the bidding documents stating that the Financial results of the Company are under audit as on the date of Techno-commercial bid opening and the Certificate from the practicing Chartered Accountant certifying the financial parameters is not available.

6.2.2.0Financial Criteria of Collaborator/Associate (Applicable for clause 6.1.2.0, 6.1.3.0 & 6.1.4.0)

Financial Criteria of Collaborator/Associate shall be same as that for the Bidder specified under clause 6.2.1.0.

Notes for Clause 6.2.1.0 & 6.2.2.0

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

(iv)For annual Turnover indicated in foreign currency, the exchange rate as on seven (7) days prior to the date of Techno-Commercial bid opening shall be used.

7.0NTPC 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.

8.0A 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

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	SECTION - I (IFB)

DETAILED INVITATION FOR BIDS

directly through the payment gateway at our SRM Site (https://etender.ntpclakshya.co.in). For logging on to the SRM Site, the bidder would require vendor code and SRM user id and password which can be obtained by submitting a questionnaire available at our SRM 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 issue of vendor code and SRM user id/password.

Note: No hard copy of Bidding Documents shall be issued.

9.0Issuance of bid documents to any Bidder shall not construe that such bidder is considered to be qualified. Bids shall be submitted online and opened at the address given below in the presence of Bidder’s representatives who choose to attend the bid opening. Bidder shall furnish Bid Security, Integrity Pact, Deed of Joint Undertaking (if applicable) and Power of Attorney separately offline as detailed in Bidding Documents by the stipulated bid submission closing date and time at the address given below.

10.0Transfer of Bidding Documents purchased by one intending Bidder to another is not permissible.

11.0Address for communication:

AGM (Contract Services-II) / Manager (Contract Services-II) NTPC Limited,

Sixth Floor, Engineering Office Complex, Plot A-8A, Sector-24, NOIDA, Distt.-Gautam Budh Nagar, Uttar Pradesh, PIN-201301, India

Fax No: +91-120-2410284/ 2410011 Tele. No. +91-120-4948621 / 4948693

e-mail: arpitjha@ntpc.co.in / sprasad01@ntpc.co.in

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

12.0Registered Office

NTPC Limited

NTPC Bhawan, SCOPE Complex, 7, Institutional Area, Lodi Road, New Delhi – 110003

Corporate Identification Number: L40101DL1975GOI007966,

Website: www.ntpc.co.in

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