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NTPC LIMITED

(A Govt. of India Enterprise)

CORPORATE CONTRACTS, NOIDA

INVITATION FOR BIDS (IFB)

FOR

DEVELOPMENT AND OPERATION OF TALAIPALLI COAL BLOCK, DISTRICT

RAIGARH, STATE OF CHHATTISGARH, INDIA

(International Competitive Bidding)

Bidding Doc. No: CS-7014-602(R)-9 Date: 19.08.2019

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 Talaipalli Coal Block, Raigarh District, State of Chhattisgarh, India as per the Scope of

Work mentioned hereinafter.

2.0 Brief Scope of Work

Design, engineering, development, operation and maintenance of coal mine to deliver

coal of specified quality to NTPC which includes:

(I) Scope of Work During Development Stage:

(a) Land acquisition and R&R:

i. Liasioning with District Administration & State Government for all land acquisition

issues

ii. Interactions with PAPS for disbursement of compensation on account of land and

R&R

iii. Tree-cutting activities for forest land

iv. Physical possession of private, Government and Forest land

v. Construction of R&R Colony for which a fixed amount as indicated in the bidding

documents shall be paid by NTPC

(b) Construction of all fixed infrastructure facilities required for development and

operation of mine for lifetime.

(II) Scope of work during operation Stage:

i. Make provision of HEMM, removal of overburden (OB), extraction of coal and

handling of overburden & coal.

ii. Crushing of coal to -50mm size.

iii. Stacking & reclaiming.

iv. Road transportation of coal upto nearest rail head for initial six years.

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v. All other activities pertaining to Mine management including compliance with all

statutory requirements.

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:

Commencement of Sale of Bid

Documents

From 27.08.2019

Last Date of Receipt of Queries from

Bidders

12.09.2019

Pre Bid Conference Date & Time

12.09.2019 at 1500 Hrs. (IST)

Last date for receipt of Bids

[Both Techno-Commercial Proposal

(Envelope-I) and Price Proposal

(Envelope-II)]

01.10.2019 upto 1500 Hrs. (IST)

Techno-Commercial Proposal

(Envelope-I) Opening Date & Time

04.10.2019 at 1500 Hrs. (IST)

Cost of Bidding Document

INR 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.

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

₹ 557,037,000 (Indian Rupees Five Hundred Fifty Seven Million Thirty Seven

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 6

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

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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 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.

and

b) At least 15 Million BCM of composite volume of overburden and coal/lignite from

single open cast mine in any year, out of which at least 3 million tonnes shall be

coal / lignite.

The qualifying works at 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 8100

Million (Indian Rupees Eight Thousand One Hundred Million only) or in

equivalent foreign currency; and

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

900 Million (Indian Rupees Nine Hundred Million only), or in equivalent foreign

currency. The Bidder must have a positive cash accrual in the last Financial

Year out of the three consecutive Financial Years considered by the bidder.

b) Net Worth of the Bidder as on the last date of the last financial year out of the three

consecutive Financial Years, as proposed by the Bidder at clause 5.2(a) above

should not be less than INR 4500 million (Indian Rupees Four Thousand Five

Hundred Million Only), or in equivalent foreign currency, which should be equal to

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

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

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

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

its Bankers should not be less than INR 590 Million (Indian Rupees Five Hundred

Ninety Million only) or in equivalent foreign currency. In case certificates from more

than one bank are submitted, the certified unutilized limits should be of the same

date from all such banks.

i) Where another Company of the Group acting as the Treasury Centre is responsible

for Treasury Management of the Bidder having combined credit/guarantee limit for

the whole group, the Bidder would be required to provide a Banker’s certificate

regarding the unutilized line of credit for fund based and non-fund based limits

together with cash and bank balances including fixed deposits available to such

Treasury Centre. Further, Treasury Centre shall certify that out of the aforesaid limits

certified by the bankers, the Bidder shall have access to the line of credit of a level

not less than the specified amount at clause 5.2 (c) above. In proof of this, the Bidder

would be required to furnish along with its Techno-commercial Bid, a Letter of

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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

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

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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.

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. 6 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 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.

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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

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.

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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 Cl. 5.3.2 (iv), Net worth in combined manner as percentage of Paid up Share capital

shall be calculated as follows:

If Net worth of the bidder (X1) and two of (X2 & X3) Subsidiary (ies) and/or Holding

Company and/or Subsidiary (ies) of its Holding Company is X1, X2 & X3 respectively

and corresponding Paid up share capital of the bidder and Subsidiary (ies) and/or

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

respectively, then

X1+X2+X3

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

Y1+Y2+Y3

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

shall be calculated as follows:

If Net worth of the three Consortium partners is X1, X2 & X3 respectively and

corresponding Paid up share capital of the three Consortium partners is Y1, Y2 & Y3

respectively, then

X1+X2+X3

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

Y1+Y2+Y3

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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.

6.0 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,

New Delhi”.

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

user ID, password and Class-III Digital Signature.

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- 4946664/ 4946605/ 4946627

Fax Nos. : + 91-120- 2410011

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