Appendix-I to IFB

APPROVED QUALIFYING REQUIREMENTS FOR FLUE GAS DESULPHURISATION

(FGD) SYSTEM PACKAGE OF LOT-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 1.1.0) or Route-2 (clause 1.2.0) or Route-3 (clause 1.3.0) or Route-4 (clause 1.4.0) including requirements stipulated in sub clauses of respective Route. In addition, the Bidder should also meet the requirements stipulated under clause 2.0.0 together with the requirements stipulated under section ITB.

1.1.0Route-1: Qualified Wet Limestone based Flue Gas Desulphurisation (FGD) System Manufacturer (QFGDM)

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 20,00,000 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.

1.2.0Route-2: Wet Limestone based Flue Gas Desulphurisation System Manufacturer with Collaboration and Technology Transfer Agreement with QFGDM

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.

1.2.2Bidder should also have a valid ongoing collaboration and technology transfer agreement with a QFGDM meeting requirements of clause 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.

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 FGD System as per format enclosed with the bidding documents. The DJU shall be submitted along with techno-commercial bid, failing which the Bidder shall be disqualified and its bid shall be rejected.

APPROVED QUALIFYING REQUIREMENTS FOR FLUE

GAS DESULPHURISATION (FGD) SYSTEM PACKAGE

OF LOT-6 PROJECTS

1.2.4In case of award of a project, the QFGDM will be required to furnish an on demand bank guarantee for an amount of 2% of the total contract price of the Flue Gas Desulphurisation System Package for the awarded project in addition to the contract performance security to be furnished by the Bidder.

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

1.3.1(a) Bidder should have designed, engineered, manufactured/got

manufactured, erected/ supervised erection and commissioned/supervised commissioning of atleast 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 1.3.1(a) or a QFGDM meeting requirements of clause 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 project(s)/order(s), during the last 5 years, with the total value of such project(s) )/order(s) being INR 5,000 million or more as on the date of Techno-commercial bid opening.

Alternatively

(c)The Bidder shall be an Indian Subsidiary Company of a Steam Generator Manufacturer meeting requirements of clause 1.3.1(a) or an Indian Subsidiary Company of a QFGDM meeting requirements of clause 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 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 project(s)/order(s), during the last 5 years, with the total value of such project(s)/order(s) being INR 5,000 million or more as on the date of Techno-commercial bid opening.

APPROVED QUALIFYING REQUIREMENTS FOR FLUE

GAS DESULPHURISATION (FGD) SYSTEM PACKAGE

OF LOT-6 PROJECTS

1.3.2Bidder 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 of such QFGDM.

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 FGD System as per format enclosed with the bidding documents. The DJU shall be submitted along with techno- commercial bid, failing which the Bidder shall be disqualified and its bid shall be rejected.

1.3.4In case of award of a project, the QFGDM will be required to furnish an on demand bank guarantee for an amount of 2 % of the total contract price of the Flue Gas Desulphurisation System Package for the awarded project in addition to the contract performance security to be furnished by the Bidder.

1.4.0Route-4: EPC Organization with Collaboration and Technology Transfer Agreement with QFGDM

1.4.1The Bidder should be an Engineering, Procurement and Construction (EPC) organization and should have executed, in the last 10 years, 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 2,000 million or more. At least one of such projects (in single or multiple contract) should have a total contract value of INR 800 million or more. These projects should have been in successful operation for a period of not less than one (1) year prior to the date of Techno-Commercial bid opening.

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.

1.4.3The 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 FGD System as per format enclosed with the bidding documents. The DJU shall be submitted along with techno-commercial bid, failing which the Bidder shall be disqualified and its bid shall be rejected.

1.4.4In case of award of a project, the QFGDM will be required to furnish an on demand bank guarantee for an amount of 2 % of the total contract price of the Flue Gas Desulphurisation System Package for the awarded project in addition to the contract performance security to be furnished by the Bidder.

APPROVED QUALIFYING REQUIREMENTS FOR FLUE

GAS DESULPHURISATION (FGD) SYSTEM PACKAGE

OF LOT-6 PROJECTS

Notes for clause 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.

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

(iii)“Flue Gas Desulphurisation System” or “FGD System” wherever appearing above shall mean consisting of at least Absorber System.

(iv)The word “executed” in Clause 1.3.1 (b)/ Clause 1.3.1 (c) means the Bidder should have:

In case of Project(s), commissioned the project(s) specified in the Clause 1.3.1 (b)/ Clause 1.3.1 (c) even if the contract has been started earlier and / or is not completed / closed

In case of Order(s), completed the scope of work under the order(s) specified in the Clause 1.3.1 (b)/ Clause 1.3.1 (c) even if the contract has been started earlier and / or is not closed.

(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 1.1.1, 1.2.1 & 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/ QFGDM either directly from owner of plant or any other intermediary organization. However, a certificate from such owner of plant or any other intermediary organisation shall be

required to be furnished by the Bidder along with its Techno-Commercial bid in support of the Bidder's/ QFGDM’s claim of meeting the qualification requirement as per clause 1.1.1, 1.2.1, 1.3.1(a) & 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 1.1.1, 1.2.1, 1.3.1(a) & 1.4.1 above.

(4)Holding Company and Subsidiary (ies), of such Holding Company (held either directly or indirectly), collectively meeting the requirements for QFGDM [Applicable for Clause 1.2.0, 1.3.0 and 1.4.0]

(i)A Holding Company along with its Subsidiary(ies), (held either directly or indirectly), collectively meeting the requirements of clause 1.1.1 and clause 2.2.0, shall also be collectively considered as QFGDM.

(ii)In such cases, Technical criteria specified at clause 1.1.1 shall be met either by the Holding Company or any one of the Subsidiaries of the Holding company. Technology Transfer Agreement, pursuant to Note 5, shall be signed by the Bidder and the entity meeting the Technical criteria. Similarly, Financial criteria specified at clause 2.2.0 shall also be met either by the Holding Company or any one of the Subsidiaries of the Holding company.

APPROVED QUALIFYING REQUIREMENTS FOR FLUE

GAS DESULPHURISATION (FGD) SYSTEM PACKAGE

OF LOT-6 PROJECTS

(iii)All such entities [Holding company and its Subsidiary(ies)] collectively meeting the requirements of QFGDM as per Note (4) (i) & (ii) above, shall necessarily be part of the DJU being submitted by the Bidder for successful performance of the FGD System as per format enclosed with the bidding documents, failing which the bidder shall be disqualified and its bid rejected.

Further, all such entities [Holding company and its Subsidiary(ies)] collectively meeting the requirements of QFGDM as per Note (4) (i) & (ii) above, shall each be required to furnish separate on demand bank guarantees as per the format enclosed with the bidding documents. Such Bank Guarantee shall be for an amount aggregating 2% of the total contract price of the Flue Gas Desulphurisation System Package for the awarded project 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 1.2.4, 1.3.4 & 1.4.4 for the QFGDM.

(5)Technology Transfer Agreement (Applicable for Clause 1.2.0, 1.3.0 & 1.4.0)

The bidder shall have a technology transfer agreement as on the date of Techno- commercial bid opening between the Bidder & QFGDM which 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 softwares, drawings and documentation, quality system manuals and imparting relevant personnel training to the Bidder.

(6)Equity Lock in period

Wherever equity lock in period requirement or subsidiary status requirement is indicated, the Bidder would be required to furnish along with its techno-commercial bid, a Letter of Undertaking from the promoter(s), supported by Board Resolution as per the format enclosed in the bid documents, for maintaining the required minimum equity for the specified lock in period.

2.0.0Financial Criteria

2.1.0Financial Criteria of Bidder

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 the value indicated in the following table:

APPROVED QUALIFYING REQUIREMENTS FOR FLUE

GAS DESULPHURISATION (FGD) SYSTEM PACKAGE

OF LOT-6 PROJECTS

Collaborator/Associate to honour the terms and conditions of the Deed of Joint Undertaking in case of award of the Contract to the Bidder with whom Collaborator/Associate is associated.

2.2.2Net worth of the Collaborator/Associate 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 Collaborator/Associate 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 Collaborator/Associate 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.

Net worth in combined manner shall be calculated as follows:

Net worth (combined) = (X1+X2+X3) / (Y1+Y2+Y3) X 100

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.

2.2.3In case the Collaborator/Associate is not able to furnish its audited financial statements on standalone entity basis, the unaudited unconsolidated financial statements of the Collaborator/Associate can be considered acceptable provided the Collaborator/Associate further furnishes the following documents for substantiation of its qualification:

(i)Copies of the unaudited unconsolidated financial statements of the Collaborator/Associate 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, Collaborator/Associate 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.

APPROVED QUALIFYING REQUIREMENTS FOR FLUE

GAS DESULPHURISATION (FGD) SYSTEM PACKAGE

OF LOT-6 PROJECTS

Notes for Clause 2.1.0 & 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.

(v)Bidder/Collaborator shall be required to meet the average annual turn over criteria specified in clause 2.1.1 & 2.2.1 respectively for the number of projects for which Bidder has indicated interest in the prescribed format submitted along with the Techno-Commercial bid. In case Bidder/Collaborator meets the average turn over criteria for lesser number of projects than indicated in the prescribed format, submitted along with the Techno-Commercial bid, then the number of project(s) shall be reduced based on Bidder/Collaborator meeting average annual turn over criteria specified in clause 2.1.1 & 2.2.1 respectively.

(vi)In case the bidder / collaborator(s) / associate(s) participating under Clause 1.2.0/1.3.0/1.4.0 do not meet the turnover requirement, then, the Turnover of any of the Promoters individually or all the promoters ( in a combined manner) (each having Equity Stake more than 25%) of the Subsidiary Company / JV Company would be considered. Each such promoter of the Subsidiary Company / JV Company shall have to meet the Net Worth criteria individually as per clause 2.1.2 and/or 2.2.2. In such an event the Bidder would be required to furnish along with its techno-commercial bid, a Letter of Undertaking from such promoter(s), supported by Board Resolution as per the format enclosed in the bidding documents, pledging unconditional and irrevocable financial support for execution of the Contract by the Bidder in case of award.

APPROVED QUALIFYING REQUIREMENTS FOR FLUE

GAS DESULPHURISATION (FGD) SYSTEM PACKAGE

OF LOT-6 PROJECTS