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. / Bidding Doc. No.: CS-7011-602(R2)-9

Date: 19.08.2019

1

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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 Chatti Bariatu Coal Block, District Hazaribagh, State of Jharkhand, India as per the

Scope of Work mentioned hereinafter.

2

Brief Scope of Work

The MDO shall plan, design, engineer, finance, construct, develop, operate and

maintain the Chatti Bariatu Coal Mine (for which Mining Plan has been approved by

MoC) to deliver coal of specified quantity and quality to NTPC which includes:

assistance in land acquisition required for project. This shall interalia involves,

interaction with PAPs, State Government and other agencies relating to land

acquisition and R&R, physical possession of land, excavation of various rocks/earth

cutting by mechanised means, loading, transportation, dumping, dozing, mining of

coal, crushing of coal to a pre-determined size, leveling at OB dumping site to ensure

progressive mine closure and infrastructures facilities like equipment workshop,

electrical substations, pumping arrangements, haul road maintenance etc, discharge

of crushed coal to delivery point and compliance to all statutory rules, regulation and

laws as applicable.

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

27.08.2019

1.09.2019

11.09.2019 at 1500 Hrs. (IST)

Last Date of Receipt of Queries from

Bidders

1

Pre Bid Conference Date & Time

Last date & Time for receipt of Bids

[

(

Both

Envelope-I)

Envelope-II)]

Techno-Commercial

Proposal

01.10.2019 up to 1500 Hrs. (IST)

and

Price

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.

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

intimated separately by NTPC.

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

122,836,000 (Indian Rupees One Hundred Twenty Two Million Eight Hundred Thirty

Six 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

Qualifying 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.

and

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 3685 Million

(Indian Rupees Three Thousand Six Hundred Eighty Five 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

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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 270 Million (Indian Rupees Two Hundred seventy 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.

.3.2. ROUTE – 2

5

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

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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.

iv. Each member of the consortium should meet either

a. Technical criteria at clause 5.1.1

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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 (anyone 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

.50

LIGNITE

0.8

1

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

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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

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

capital shall be calculated as follows:

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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.

6.0

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.

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

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th

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/ 4946679

Fax Nos. : + 91-120-2410011

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

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