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NTPC LIMITED

(A Govt. of India Enterprise)

CORPORATE CONTRACTS, NOIDA

INVITATION FOR BIDS (IFB)

FOR

DEVELOPMENT AND OPERATION OF NORTH WEST QUARRY OF PAKRI

BARWADIH COAL MINING PROJECT,

DISTRICT HAZARIBAGH, STATE OF JHARKHAND, INDIA

(International Competitive Bidding)

IFB No. / Bidding Doc. No. : CS-7010-602A-9 Date: 05.03.2019

1.0 NTPC 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 North West Quarry of Pakri Barwadih Coal Mining Project, District Hazaribagh,

State of Jharkhand, India as per the Scope of Work mentioned hereinafter.

2.0 Brief Scope of Work

The broad scope of work includes facilitation to acquire all the land, obtaining all

clearances including Environment & Forest Clearances, 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, levelling 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

3.0 Detailed 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 Start Date & Timing 20.03.2019 (From 1000 Hrs. (IST))

Last Date of Receipt of Queries from

Bidders and Pre Bid Conference Date

& Time

05.04.2019 at 02.15 Hrs. (IST)

Last date & time for receipt of Bids

[Both Techno-Commercial Proposal

(Envelope-I) and Price Proposal

(Envelope-II)]

19.04.2019 upto 1430 Hrs. (IST)

Techno-Commercial Proposal

(Envelope-I) Opening Date & Time

19.04.2019 at 1500 Hrs. (IST)

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.

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The date of opening of Envelope-II (Price Proposal) and Reverse Auction shall be

intimated separately by NTPC.

4.0 All bids must be accompanied by Earnest Money Deposit for an amount of

INR 17,34,81,000/- (Indian Rupees Seventeen Crores Thirty Four Lakhs Eighty One

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.

5.0 Qualifying Requirements

In addition to the satisfactory fulfillment 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 3

MTPA and produced at least 2 million tonnes of coal/lignite from such mine.

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 11.50 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.

and

b) At least 6 Million BCM of composite volume of overburden and coal/lignite from

single open cast mine in any year, out of which at least 1.50 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 5204

Million (Indian Rupees Five Thousand Two Hundred Four Million only) or in

equivalent foreign currency; and

ii) The average annual cash accrual of the Bidder should not be less than INR 410

Million (Indian Rupees Four Hundred Ten 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.

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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 2052 Million (Indian Rupees Two Thousand

Fifty Two Million Only), or in equivalent foreign currency, which should be equal

to or more than 100% of its paid up share capital.

c) The unutilized line of credit for fund based and non-fund based limits with cash

and bank balances including fixed deposits of the Bidder as on a date not earlier

than 15 days prior to the date of Techno-commercial Bid opening, duly certified by

its Bankers should not be less than INR 382 Million (Indian Rupees Three

Hundred Eighty Two 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.

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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 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.

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iii. Net worth of all the consortium members in combined manner, as on the last date of the

last financial year out of the three consecutive Financial Years, proposed by Bidder for

meeting Financial Criteria, should be equal to or more than 100% of their total paid up

share capital. However, net worth of each member of the consortium excluding the

leader, as on the last date of the last financial year out of the three consecutive Financial

Years, considered by Bidder for meeting Financial Criteria, should not be less than 75%

of their respective paid up share capital individually.

iv. Each member of the consortium should meet either

a. Technical criteria at clause 5.1.1

b. At least 20% of the technical criteria at clause 5.1.2 (a) i.e. 2.30 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.

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.

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vii. For Coal/Lignite, following specific gravity (tonnes/cubic meters) shall be considered:

COAL LIGNITE

1.50 1.14

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

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Company and/or Subsidiary(ies) of its Holding Company is Y1, Y2 & Y3 respectively,

then

X1+X2+X3

Net worth (in combined manner) = --------------- X 100 %

Y1+Y2+Y3

xiv. For 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.

xx. BCM as per clause no 5.1.2 (a) and 5.1.2 (b) means Bank Cubic meter.

6.0 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.

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

NTPC e-tender website https://eprocurentpc.nic.in. Tender Fee towards the cost of

bidding documents shall be submitted in the form of a crossed Demand Draft/Pay

Order/Bankers Cheque for an amount as indicated above, in favour of “NTPC Limited”.

For logging on to the e-Tender Site https://eprocurentpc.nic.in, the bidder would require

user ID, password and Class-III Digital Signature.

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For downloading of bidding document, procedure for submission of bids & Reverse

Auction methodology, bidders may please refer to the link “Bidders Manual Kit” given on

home page of NTPC’s e-tender website https://eprocurentpc.nic.in.

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.

8.0 Address for communication:

AGM / Sr. Manager / Manager

Contract Services

NTPC Limited, 6

Floor,

Engineering Office Complex,

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

PIN - 201301

Ph. No: +91-120- 3776664/ 3776605/ 3776616

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

Email: sanjaydeodhar@ntpc.co.in, gsrandhawa@ntpc.co.in; dheerendramishra@ntpc.co.in;

Websites: https://eprocurentpc.nic.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

DATE SHEET

.No.

Particulars

Remarks

resentative / Contact

Person and Address of

Communication

AGM / Sr. Manager / Manager

Contract

Services

NTPC Ltd., 6

Floor,

Engineering Office Complex,

A-8A, Sector-24, NOIDA (UP)

PIN - 201 301

Ph.No:0120-

3776664/ 3776605/ 3776679

Email: sanjaydeodhar@ntpc.co.in,

gsrandhawa@ntpc.co.in;

skvashisth@ntpc.co.in

Date of IFB

05.03.2019

Last Date of Receipt of

Queries from Bidder

23.04.2019;

Pre Bid Conference

23.04.2019

at 1415 Hrs. (

IST

)

Venue : Refer Sl.No.1

Type of proposal

Single Stage Two Envelope

(Envelope-I : Techno-Commercial Proposal

consisting of Qualification Proposal &

Technical Proposal and

Envelope-II : Price Proposal

Validity of Proposal

Six (6) months from the date of opening of

Techno Commercial Proposal

Submission time and date

Project Proposal

(Techno-

Commercial

Proposal

(Envelope -I)

and Price

Proposal

(Envelope -II))

06.05.2019

upto 1430 Hrs. (IST)

Opening time and date of

Techno-Commercial

Proposal (Envelope-I)

08.05.2019

at 1500 Hrs. (IST)

Opening time and date of

Price Proposal (Envelope-

II)

To be intimated later

10.

Reverse Auction Date

To be intimated later