BANK GAURANTEE FOR CONTRACT PERFORMANCE

Ref…..

Bank Guarantee No……..

To,

NTPC Ltd., Vindhyachal

P.O.Vindhyanagar, Distt- Singrauli (M.P.), Pin- 486 885

In Consideration of the NTPC Ltd (herein after referred to as the ‘Owner’ which expression shall unless repugnant to the context or meaning there of include its successors, administrators and assigns) having awarded to Ms……………………………………………………………………………………………………………

……………………………………………………………………………………….with its registered/Head office at

………………………………………………………………………………………………………………

…………………………………………………………………………………….(hereinafter referred to as the ‘Contractor’ which expression shall unless repugnant to the context or meaning thereof, include its successors, administrators executors and assigns), a Contract by issue of owner’s letter of intent No …………………………..dtd …………………………….and the same having been unequivocally accepted by the Contractor resulting in a’ Contract’ bearing No…………………………………dtd…………………………..value at

……………………………………………………………for………………………………………………

………………………………………………

(Scope of Contract)

And the contract having agreed to provide a Contract Performance Guarantee for the faithful performance of the entire Contract equivalent to ………………………………………..% (Percent) of the said value of the contract to the Owner.

We……………………………………………………………………………………………………………

…………………………………………….

(Name and Address)

………………………………………………………………………………………………having its Head office at……………………………………………………………………………………………………………

…………………………………………………………………………………(hereinafter referred to as the Bank which expression shall, unless repugnant to the context or meaning there of, include its successors, administrators, executors and assigns) do here by guarantee and under take to pay the owner, on demand any and all monies payable by the Contractor to the extent of ……………………………………………………………………………………………as aforesaid at any time upto…*……………………………………………………………..

(Day/Month/Year)

Without any demur, reservation, contest, recourse or protest and/or without any reference to the Contractor, any such demand made by the owner on the Bank shall be conclusive and binding not withstanding any difference between the owner and contractor or any dispute pending before any court, tribunal or any other authority,

The bank under takes not to revoke this guarantee during its currency without previous consent of the owner and further agrees that the guarantee herein contained shall continue to be enforceable till the owner discharges this guarantee. The owner shall have the fullest liberty without affecting in any way the liability of the bank under this guarantee from time to time extend the time for performance of the Contract by the contractor. The owner shall have the fullest liberty without affecting this guarantee, to postpone from time to the same at any time in any manner, and either to enforce or to forebear to or enforce any covenants, contained or implied in the contract between the owner and the contractor or any other course of or remedy or security available to the owner. The bank shall be released of its obligation under those presents by any exercise by the owner of its liberty with reference to the matters aforesaid or any of them or by reason of any other matters or thing whatsoever which under the law would, but for this provision, have the effects of relieving the bank.

The bank also agrees that the owner at its option shall be entitled to enforce this guarantee against the bank as a principal debtor, in the first instance without proceeding against the contractor and not withstanding any security or other guarantee that the owner have in relation to the contractor’s liabilities.

Notwithstanding anything contained herein above our liability under the guarantee is restricted to ………………………………………………………………………………. And it shall remain in

force up to		and including ……………………………………............and it shall extended from
time to	time	for such period (not	exceeding one	year) as may be	desired	by
M/s	……………………………………………………………………………whose				behalf	this
guarantee has been given.
Witness:
Dated this ……………………………………………………day of ………......20……...
At………………………..
Witness:
1) (Signature) …………………………			(Signature)	……………………………
(Name) :…………………….............			(Name) :…………………….............
(Official Address) ……………			Designation ………………………………..
			(Bank’s Rubber Stamp)

Attorney as per power of attorney

No………..

Date……………

2)(Signature) …………………………

(Name) :……………………............. (Official Address) ……………

NOTE:

1.1) ( * ) The date will be three months beyond the expiry of the warranty period as specified in the order.

2.The Bank Guarantee shall be from a bank as per provisions of bidding documents.

3.The Stamp Paper of appropriate value shall be purchased in the name of the Bidder/Bank issuing the guarantee.

4.BG to be stamped in accordance with M.P stamp act. At present Stamp paper of value of Rs 250/- is required.

5.While getting the Bank Guarantee issued, Bidders are required to ensure compliance to the points mentioned in the Bank Guarantee Verification Check List in the bidding documents. Bidders are required to fill up this check List and enclose the same along with the Bank Guarantee.

LIST OF BANKS WHO’S BG IS ACCEPTABLE FOR CPG

Scheduled Commercial Banks

Nationalized /Public Sector Banks

State Bank of India	Bank of India		Punjab National Bank
State Bank of Bikaner &	Bank of Maharashtra		Punjab & Sind Bank
Jaipur
State Bank of Hyderabad	Bank of Baroda upto 31.12.2010		Syndicate Bank
State Bank of Indore	Canara Bank		Union Bank of India
State Bank of Mysore	Central Bank of India		United Bank of India
State Bank of Patiala	Corporation Bank		UCO Bank
	Dena Bank		Vijaya Bank
State Bank of Travancore	Indian Bank		IDBI Bank Ltd. Upto 31.08.09
Allahabad Bank	Indian Overseas Bank
Andhra Bank	Oriental Bank of Commerce
Scheduled Foreign Banks
Bank of America NA	Deutsche Bank A.G		ABN Amro Bank N.V
Bank of Tokyo Mitsubishi	The Hongkong and Shanghai		Bank of Nova Scotia
UFJ Ltd.	Banking Corpn Ltd.
BNP Paribas	Standard Chartered Bank
Calyon Bank	Societe Generale		Yes Bank upto 30.9.2010
Citi Bank N.A	Barclays Bank
Scheduled Private Banks
ING –Vysya Bank Ltd.	ICICI BANK LTD	HDFC BANK LTD
Axis Bank Ltd.

	BANK GUARANTEE VERIFICATION CHECK LIST
Sl. No.	Details of Checks	Yes/No
1.	Is the BG on Non-judicial stamp paper of appropriate value, as per
	Stamp Act [i.e.……………..]
2.	Whether date, purpose of purchase of stamp paper and name of the
	purchaser are indicated on the back of stamp paper under the Signature
	of Stamp Vendor?
	(The date of purchase of stamp paper should be not later than the date
	of execution of BG and the stamp paper should be purchased either in
	the name of the executing Bank or the Bidder on whose behalf the BG
	has been issued. Also, the stamp paper should not be older than six
	months from the date of execution of BG).
3.	In case of BGs from Banks abroad, has the BG been executed on Letter
	Head of the Bank.
4.	Has the executing officer of BG indicated his name, designation and
	Power of Attorney No. / Signing Power No., on the BG?
5.	Is each page of BG duly signed / initialed by executant and whether
	stamp of Bank is affixed thereon?
6.	Whether the last page is signed with full particulars including two witness
	under seal of Bank as required in the prescribed proforma?
7.	Does the Bank Guarantee compare verbatim with the Proforma
	prescribed in the Bidding Documents?
8.	Are the factual details such as Bidding Documents No. / Specification
	No., Amount of BG, validity of BG correctly mentioned in the BG?
9.	Whether overwriting / cutting, if any on the BG have been properly
	authenticated under signature & seal of executants?
10.	Whether BG has been issued by a Bank in line with the provisions of
	Bidding Documents?
11.	In case BG has been issued by a Bank other than those specified in
	Bidding Document, is the BG confirmed by a Bank in India acceptable as
	per Bidding Document?