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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(R3)-9 Date:25.11.2020

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

Scope of Work mentioned hereinafter.

2.0 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

02.12.2020

Last Date of Receipt of Queries from

Bidders

15.12.2020 till 1700Hrs (IST)

Pre Bid Conference Date & Time

15.12.2020 at 1500 Hrs. (IST)

Last date & Time for receipt of Bids

[Both Techno-Commercial Proposal

(Envelope-I) and Price Proposal

(Envelope-II)]

04.01.2021 up to 1500 Hrs. (IST)

Techno-Commercial Proposal (Envelope-I)

Opening Date & Time

07.01.2021 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.

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

144,718,000 (Indian Rupees One Hundred Forty Four Million Seven Hundred

Eighteen 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.

4.1 Further, any ‘Bidder from a country which shares a land border with India’, as

specified in the Bidding Documents, will be eligible to bid in this tender only if

bidder is registered with the Competent Authority as mentioned in the Bidding

Documents.

However, the said requirement of registration will not apply to bidders from those

countries (even if sharing a land border with India) to which the Government of

India has extended lines of credit or in which the Government of India is engaged

in development projects.

4.2 "NTPC shall allow purchase preference, as indicated in the bidding documents, to

bids from local suppliers as defined in the bidding documents. The bidders may

apprise themselves of the relevant provisions of bidding documents in this regard

before submission of their bids."

5.0 Qualifying Requirements

In addition to the satisfactory fulfilment of the requirements stipulated under section ITB,

the following shall also apply:

5.1. Technical Criteria

Bidder should have carried out for itself or as a contractor or sub contractor, excavation and transportation

of Overburden by mechanized means and/or excavation and transportation of coal/ lignite/ iron ore/

bauxite/ manganese ore/ copper ore by mechanized means during the past 7 (seven) years reckoned from

the date of opening of the Techno-commercial Bids such that the total composite volume of such

excavation and transportation during any period of 1 (one) Year (consecutive 365 days) in the aforesaid

period of 7 (seven) years is more than 8.5 million bank cubic meter (the qualifying quantity), from maximum

5 (five) opencast mines of coal/ lignite/ iron/ bauxite/ manganese/ copper; provided that the quantity

handled in at least one mine should not be less than 40% of the qualifying quantity (i.e. 3.4 million bank

cubic meter).

For the purpose of the Bid, the specific gravity of coal, lignite, iron ore, bauxite, manganese ore and copper

ore shall be considered as [1.6], [1.15], [4.0], [2.4], [3.7] and [3.0] respectively.

The start date and end date of the qualifying period shall be specified by the Bidder. The start date and

end date of each work claimed for qualifying experience shall fall on or within the dates specified in the

qualifying period.

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 4342 Million (Indian

Rupees Four Thousand Three Hundred Forty Two Millions or in equivalent foreign currency;

and

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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 Millions) 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 318 Million

(Indian Rupees Three Hundred Eighteen Millions) 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.

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 &

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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. 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. At least one of the Consortium partner

should have handled at least 40% of the qualifying quantity mentioned at clause 5.1 from single mine (i.e.

3.4 million bank cubic meter from single mine).

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. At least 20% of the Qualifying Quantity mentioned at clause 5.1 i.e. 1.7 Million BCM of

overburden and/ or coal/ lignite/ iron/ bauxite/ manganese/ copper from a maximum of five open

cast mines of Coal / Lignite/ Iron/ Bauxite/ Manganese/ Copper, in any year. However, the total

number of mines to be considered for meeting the technical criteria at clause 5.1 collectively by all

consortium members shall not exceed five.

b. 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 “overburden” shall also include “inter-burden provided it is measured and accounted

separately.”

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ii) For criteria at clause 5.1 in case the Bidder is seeking qualification as a mine owner, the volume of

overburden/coal/lignite/ iron ore/ bauxite/ manganese ore/ copper ore production should be certified by

Statutory Auditor of the Bidder.

iii) 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/ iron ore/ bauxite/ manganese ore/ copper ore from the Owner.

Alternatively, a certificate from the Statutory Auditor of the Bidder certifying the volume of overburden/

coal/lignite/ iron ore/ bauxite/ manganese ore/ copper ore production.

iv) “Holding Company” and “Subsidiary” shall have the meaning ascribed to them as per Companies Act, in

vogue.

v) 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 (v) shall also be applicable for Subsidiary Company/ Holding Company /

subsidiary of Holding Company / Consortium Members.

vi) 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.

vii) 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

viii) 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

ix) 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.

x) Cash Accrual shall mean the net cash flow from operations i.e. PAT + Depreciation + Other non-cash

expenses.

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xi) Other income shall not be considered for arriving at annual turnover.

xii) 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.

xiii) In case the bidder has executed any reference work as a JV partner/consortium member, the

experience of the bidder shall be considered equivalent to the executed value of work corresponding

to value of work under the scope of bidder only as per the JV/Consortium Agreement/certified by

owner/statutory auditor etc. (as applicable). In case bidder is not able to substantiate the above with

documentary evidence, the experience of the bidder shall be considered in proportion to the bidder’s

equity participation as per JV/consortium agreement or other documentary evidence. However,

experience in JV/consortium with equity participation less than 10% shall not be considered.

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

NTPC Limited, 6

Floor,

Engineering Office Complex,

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

PIN - 201301

Ph. No: +91-120- 4946605/4946627

Fax Nos. : + 91-120-2410011

Email: bmandal@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