KERALA STATE ELECTRICITY BOARD LIMTED

PROCUREMENT MANUAL

2017

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 Registered Office: Vydyuthi Bhavanam, Pattom, Thiruvanathapuram-
695004.Website: www.kseb.in

ABBREVIATIONS

KSEBL - Kerala State Electricity Board Limited

SCM - Supply Chain Management.
BVM Best Value for Money
EMD - Earnest Money Deposit
OEM - Original Equipment Manufacturer
PSU - Public Sector Undertaking
NABL - National Accreditation Board for Laboratories
CPRI - Central Power Research Institute
R&D - Research & Development
GTP - Guaranteed Technical Particulars
RFVR - Request for Vendor Registration
GST - Goods and Service Tax.
FA - Financial Adviser
LA & DEO - Legal Advisor and Disciplinary Enquiry Officer
BIS - Bureau of Indian Standards
IEC - International Electro Commission
ISO - International Organization of Standardisation
BVQI - Bureau Veritas Quality International.
DNV - Det Norske Veritas
MAAT - Minimum Average Annual Turnover.
GCC - General Conditions of Contract
SCC - Special Conditions of Contract
CIN - Corporate Identity Number
SSI - Small Scale Industries
HSN - Harmonised System Nomenclature
PO - Purchase Order.
QR - Quality Rating
VR - Vendor Rating
PR - Price Rating
SR - Service Rating
PL - Lowest Price obtained for the Goods being bidded
PQV - Price quoted by the Vendor being evaluated for bidded Goods
ARU - Account Rendering Unit
SBU - Strategic Business Unit
GeM - Government e- Market
NIT - Notice Inviting Tender
DSC - Digital Signature Certificate

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RA - Registration Authorities
SBI - State Bank of India
NEFT - National Electronic Fund Transfer
GRPT - Group Transfer
UTR - Unique Transaction Reference
RTGS - Real Time Gross Settlement
PAC - Probable Amount of Contract
VPP - Value Payable Post
PQ - Pre-Qualification
QA - Quality Assurance
FAT - Factory Acceptance Test
SAT - Site Acceptance Test
QAP - Quality Assurance Plan
SD - Security Deposit
PSD - Performance Security Deposit
MCLR - Marginal Cost of Fund based Lending Rate

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 INDEX

Section Page
Chapter No. Details
No. No.

1 INTRODUCTION
1.1 About the Organisation
1.2 Aim and Objectives of the Procurement Manual
1.3 General Principles of Procurement
1.4 Procurement of Goods in KSEBL
1.5 Conflicts with the contents in this Manual
1.6 Date of effect and Revisions of the Manual

2 VENDOR REGISTRATION AND MANAGEMENT

2.1 Identification of Eligible & Qualified Vendors

2.2 Eligibility criteria for Vendor Registration
2.3 Registration of Vendors
2.4 Documents to be attached along with the application for Registration
2.5 Assessment of Limit for participation in bids
2.6 Vendor Approval Committee
2.7 Renewal of Registration
2.8 Cancellation of Registration
2.9 Fees for Registration/Renewal
2.10 Certificate for Registration/Renewal
2.11 Refusal of Registration or Renewal
2.12 Blacklisting of Vendors
2.13 Validity of Registration
2.14 Change in address of the Vendor
2.15 Maintenance of Vendor’s Rating Card
2.16 Vendor Rating (VR)
2.17 Documents to be submitted by Registered Vendors

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3 GENERAL PRINCIPLES OF PROCUREMENT

3.1 Principles of Procurement

3.2 Authorities competent to procure Goods

4 PROCUREMENT PLANNING

4.1 Forecast of Requirement

4.2 Approval of Procurement Plan
4.3 Sanction for Purchase

5 GENERAL GUIDELINES FOR PROCUREMENT

5.1 Procurement Process

5.2 Mode of Procurement
5.3 Purchase without Quotations
5.4 Purchase on Rate Contract
5.5 Purchase by Inviting Quotations
5.6 Single Tender
5.7 Limited Tender
5.8 Global Tender
5.9 Open Tender
5.10 Preparation of Tender documents
5.11 Earnest Money Deposit
5.12 Amendments/Corrigendum
5.13 Pre-bid meeting of Bidders
5.14 Bid opening and Evaluation
5.15 Preliminary verification of bids
5.16 Opening of Technical bid
5.17 Opening of Price bid
5.18 Performance Security Deposit
5.19 Execution of Agreement
5.20 Re-Tender

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6 DELIVERY OF GOODS

6.1 Delivery Period

6.2 Sample
6.3 Packing & Marking as per IS
6.4 Delivery of Goods
6.5 Extension of Delivery period
6.6 Despatch of Goods after expiry of Delivery Period
6.7 Transit Cum Storage Insurance
6.8 Force Majeure
6.9 Penal Provisions
6.10 Termination of Contract
6.11 Foreclosure of Contract
6.12 Settlement of Grievances and Disputes
7 QUALITY ASSURANCE AND QUALITY CONROL
7.1 Quality Assurance
7.2 Inspection
7.3 Inspection and dispatch

8 PAYMENT FOR SUPPLY OF GOODS

8.1 Payment
8.2 Advance Payment

Form ANNEXURES
A Application for Vendor Registration
B Application for Vendor Renewal
C Vendor Factory Inspection and Analysis Report
D Vendor Evaluation Format
E Undertaking to refrain from illegal practices
F Certificate of Vendor Registration
G Format of Quotation Notice
H Notice Inviting Tender
I Bid Form
J Format of Bid Agreement
K Register for Tender/Quotations

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L Register for E-Tender
M Format of Bank Guarantee for Security Deposit
N Format of Performance Bank Guarantee
O Format for Contract Agreement
P Format of Supplemental Agreement
Q Format of Bank Guarantee for Advance Payment
R Format of Letter of Acceptance
S Format of Inspection Summary

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 Chapter 1

INTRODUCTION

1.1. About the Organisation

KERALA STATE ELECTRICITY BOARD Ltd (KSEBL) is the largest Government

owned Public Sector power utility in the State of Kerala conducting electricity
business, having various functional units. The primary objective of KSEBL is to
provide quality power at affordable cost on demand to the consumers of the State of
Kerala and to act as a catalyst for total development of the State. The said objective
has to be met within the regulatory frame work provided under Electricity Act, 2003.

1.2. Aim and Objectives of the Procurement Manual

Supply Chain Management (SCM) department and other functional units need to
procure different types of Goods, Equipments Tools, Plants, Designs, office
equipments and other Goods to discharge the duties and responsibilities assigned to
them for the smooth conduct of the business of the KSEBL. It is therefore imperative
that uniform, systematic, efficient and cost effective procedures are required for
procurement of Goods.

The Financial powers are delegated to various levels of officers and such delegated
powers for procurement have to be exercised in conformity with the orders and
guidelines issued by competent authorities’ covering financial, vigilance, security,
safety, countertrade and other regulatory aspects.

To achieve what has been stated in the above paragraphs, it is essential that the
purchasing officials must be provided with all the required rules, regulations,
instructions, directives, and guidance on best practices in the form of a Manual which
will henceforth act as the guiding document for all kinds of purchases of Goods in
KSEBL.

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 This manual is intended to have a user friendly & speedy procurement system in
KSEBL, and also aimed to:

Ensure transparency, promote competition, accountability, fair and equitable

treatment of bidders, enhance efficiency, economy, safeguard interest of the
organization, and adopt mechanism to the elimination of arbitrariness in the
entire field of procurement process.

1.3. General Principles of Procurement

1.3.1 As accepted internationally, the best Value of Money (BVM) is considered to be

one of the general principles applicable throughout the various stages of
procurement process. While procuring Goods, the officers and staff involved in
the procurement activity need to ensure that the optimal outcome has been
achieved considering all relevant factors such as costs and benefits, risks and
resources etc over the entirety of the product or service life cycle.

1.3.2 The procurement activities of KSEBL shall be conducted in a transparent manner

ensuring competition, fairness and elimination of arbitrariness in the system, so as to
enable the prospective bidders to formulate competitive bids with confidence. Some
of the important measures to achieve the same are:

(i) The text of the bid document should be user-friendly, comprehensive,

unambiguous, and relevant to the objective of the purchase. The common terminology
used in the industry should be preferred.

(ii) The specifications of the required Goods should be framed giving sufficient details
in such a manner that it is neither too restrictive as to deter potential bidders or
increase the cost of purchase nor too sketchy to leave scope for sub-standard supply.
The specifications must meet the essential requirements of KSEBL. Efforts should
also be made to use standard specifications, which are widely known to the industry.

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(iii) The bid document should clearly mention the eligibility criteria to be met by the
bidders such as minimum level of experience, past performance, technical capability,
manufacturing capability/facilities, financial position, ownership or any legal
restriction, etc.
(iv) The procedure for preparing and submitting the bids, deadline for submission of
bids, date, time & place of public opening of bids, requirement of earnest money and
performance security, parameters for determining eligibility of bids, evaluating and
ranking of bids and criteria for acceptance of bid and conclusion of contract should
be incorporated in the bid document in clear terms.

(vi) Bids shall be evaluated in terms of the criteria incorporated in the bid document.
No other conditions shall be considered while evaluating the bids.

(vii) Sufficient time should be allowed to the bidders to prepare and submit their bids.

(viii) Suitable provisions should be kept in the bid document allowing the bidders
reasonable opportunity to clarify the bid conditions, bidding process, and/or rejection
of its bid and the settlement of disputes, if any, emanating from the resultant contract.

(ix) It should be made clear in the bid document that bidders are not permitted to alter
or modify their bids after expiry of the deadline for receipt of bid till the date of
validity of bids and if they do so, their earnest money will be forfeited.

(x) Negotiations with the bidders may be generally discouraged. However, in

exceptional circumstances, where price negotiations are considered unavoidable, the
same may be resorted to, but only with the lowest evaluated eligible bidder, after duly
recording the reasons for such action.

(xi) Any Government directives in connection with the public procurement duly
adopted by KSEBL, are binding to all the procurements in KSEBL.

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1.3.3 Procurement procedures must conform to exemplary norms of best practices to ensure
efficiency, economy and accountability in the system. To achieve this objective, the
following key areas should be taken care of:

(i) To reduce delays, each functional units should prescribe appropriate time frame for
each stage of procurement, delineate the responsibility of different officials and
agencies involved in the purchase process and delegate, wherever necessary,
appropriate purchase powers to the lower functionaries with due approval of the
competent authority.

(ii) Each functional head should ensure conclusion of contract within the original
validity of the bids. Extension of bid validity must be discouraged and resorted to
only in absolutely unavoidable, exceptional circumstances under intimation to the
competent authority, after duly recording the reasons for such extension.

1.4. Procurement of Goods in KSEBL

The Goods procurement in KSEBL is done through either Centralised procurement

from the corporate office for the usage across all functional units or Decentralised
procurement by the functional heads in field units. The powers are delegated for
procurements to various level of officers based on the extent of activities they need to
carry out for the organization.

1.5. Conflicts with the contents in this Manual

Any difficulties or conflict arising in the provisions or guidelines in this manual shall
be brought to the attention of the purchasing authority as and when it is noticed, who
shall prepare a detailed report on the issue and seek approval from the Board for the
same, and to make the order an integral part of this manual.

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1.6. Date of effect and Revisions of the Manual

This manual will be valid with effect from the date of approval by KSEBL. KSEBL
is at the liberty to bring the amendment, addition, deletion and revisions on full or any
part of this manual, as many times as it feels necessary. Any such revisions will be
duly notified in the website of KSEBL/circulated across the organization.

Any deviation from the manual shall be made with the prior approval of the
Board of Directors.

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 Chapter 2

VENDOR REGISTRATION AND MANAGEMENT

2.1 Identification of Eligible & Qualified Vendors

The success of procurement contract is mainly connected with the capability of the
manufacturer/Vendor/Supplier. Pre-qualification is a method to select such competent
vendors having financial and technical capabilities in line with the requirement of the
particular objective.

Hereafter the term Vendors shall mean Original Equipment Manufacturers.

The KSEBL shall follow a regular system for identification and enlisting qualified, eligible
competent Vendors by the method prescribed in this manual. This process can be adopted for
all the Goods which may be prescribed by the KSEBL from time to time. The Vendors so
registered with the KSEBL shall be able to fulfil and follow the terms of procurement
procedure prevailing in the KSEBL.

While inviting RFV, the registering authority shall specify the minimum qualifying criteria
for the vendor against each good and the prospective vendor will be evaluated on a Pass/Fail
scale.

It should be made clear in the notification for the registration of Vendor that, registration by
itself do not guarantee that the contracts for Goods or supply of Goods for works (including
turnkey contracts) would be awarded to the registered vendors.

The registered vendors shall be made use of both for Centralized purchases / procurements /
contracts at Corporate SCM level and for decentralised purchases / procurements / contracts
by the authorised field officers based on the powers delegated to them. The Suppliers for
Works executed by the KSEBL, including those executing turnkey works, shall procure and
supply Goods only from the Vendors registered with the KSEBL. Generally, if the Vendor is
not registered for any Goods to be supplied against a work contract, Goods shall be procured
only after successfully completing the registration of the Vendor of said Goods with the

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KSEBL. However, in case of a Vendor who has not been registered earlier but who is having
good repute, suo-moto registration can be initiated by KSEBL on a case to case basis.

2.2 Eligibility criteria for Vendor Registration

 A Vendor seeking registration is required to furnish evidence that is considered

appropriate to establish that Vendor is a legal entity.
 The KSEBL may deny the registration of a Vendor for reasons directly related to its
capability and availability of resources to successfully perform the contract.
 Vendor shall be an Original Equipment Manufacturer.
 While applying for registration, Vendors should specify the list of Goods or Goods for
which registration is sought.
 Manufacturing firm should have minimum five years’ experience in the field of
design, fabrication, manufacture and successful supply, testing & commissioning of
the particular Goods to any power sector utilities or PSUs and they should have three
years satisfactory operation/service record for supply and service support for the
Goods offered.
 For decentralised purchases, the purchasing officer shall ensure that the Goods offered
by an authorised dealer shall only be from a registered Vendor for that item.
 Goods offered shall fully satisfy the technical specifications and ratings of such Goods
and same shall be successfully tested in NABL accredited Lab or CPRI or any other
lab approved by Government of India or accredited independent international labs.
 For Vendors having previous experience with KSEBL, their Performance for previous
contracts with the KSEBL shall be satisfactory.
 Manufacturing Vendors shall have valid factory licence.
 Vendors who are suspended / blacklisted/banned by KSEBL or other power utilities or
PSUs, shall not be eligible for re-registration for a period of FIVE years or as
specified in the blacklisting order.
 Registration requests shall not be entertained from such Vendors whose stake holders
have any interest in Vendors which are in the deregistered/banned list of the KSEBL.
 Vendors shall be financially sound enough to fulfil the contract, for which they are
getting registered, satisfactorily.

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 Manufacturing Vendors shall have satisfactory quality control system.
 Vendors shall have unblemished track record in execution of contracts.
 Manufacturers should possess required infrastructure, machinery and qualified
manpower.
 Only those Vendors who submit all the required details in the prescribed form of
application together with the prescribed Certificates/documents and fees will be
considered for registration/renewal or otherwise.
 With the advent of new technologies and innovations due to continuous R&D in the
power sector, it may be required to adopt new technology products, which is
considered beneficial for KSEBL. This may necessitate allowing registration of new
entrants for these new technology products. These vendors may be registered, as a
special case for a specified duration, after successfully demonstrating their new
technology products. Such new technology can be introduced as a pilot scheme to
assess its acceptability by the organization with cost benefit impact. In this case
relaxation can be made for the qualification criteria for minimum experience as
mentioned above. The Pilot project on new technology may be approved as per the
procedure described hereunder.
(1) The result/experience of implementation of such pilot scheme by any
organization, preferably power utilities in the country, if available, would be
recorded.
(2) The feasibility reports of such pilot scheme/project is required to be prepared
by a team of at least two technical officers/innovation committee, specifying
the cost and benefit of a particular scheme for its implementation as a pilot.
The project will be approved by the Full Time Directors.
(3) In case of proprietary Goods, proposal from single Vendor can be accepted on
the terms, conditions and technical specification as agreed by the said Vendor
with other power utilities, if available. Else the terms, conditions and technical
specification shall be approved by the Board after due verification.
(4) Such pilot projects shall not result into restricted competition for future
contracts.

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 (5) On completion of pilot project/scheme the result of such project/scheme shall
become the base for adopting the new technology in other areas of Board as
per normal procedure.
(6) The new technology Goods implemented shall be monitored for its
performance for a period of three years, during which time the Vendor
registered for this Goods will be under probation. In case of failure or non-
satisfactory performance during this period, the Vendor will be automatically
de-registered

2.3 Registration of Vendors

2.3.1 Procedure for One-Time Registration & Periodical Renewal

KSEBL will maintain a register of vendors in an e-register format to track the item wise
vendors for each item of Goods, with history of registration, renewal, Vendor rating,
blacklisting history etc. This list called the ‘Lists of registered vendors and Goods’ will be
the basis of KSEBL to understand the Vendor base, their rating and initiate the strategy for
increasing competition.

However if a registered Vendor is not participating in consecutive three bids with their valid
offers, their registration to that particular good /segment of Goods will be cancelled without
intimation. The Vendor will be given a notice to this effect when they fail to participate in
two tenders for which Vendor was eligible to participate.

Notwithstanding to any of the above, KSEBL is at liberty to resort to open tender in

appropriate cases.

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2.3.2 Time frame for Vendor Registration process

The submission of request for registration (Annexure-A) in response to a Request for

Vendors (RFV) does not in any way make KSEBL liable to accept it. KSEBL is not bound to
accept any request or to assign reasons for the rejection of any request and the decision of the
competent authority in this regard shall be final. When a request is rejected on confidential
grounds such information shall be recorded and kept confidential and no action for libel shall
lie against KSEBL.

Vendor registration shall not be an alternative to avoid the mandatory tender procedure
followed by KSEBL in all purchases.

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 2.4 Documents to be attached along with the application for Registration

(1) Latest annual return filed before the income tax authorities and audited annual
statement of accounts for preceding five years.
(2) Product wise annual turnover for quantity and amount
(3) GST Registration number of the firm with HSN code of the item.
(4) Registration certificate (if registered under companies Act/Partnership Act)
(5) A copy of the Memorandum and Article of Association (In case of limited Company)
or Partnership deed as the case may be.
(6) List of registered/authorised dealers of the Vendor for each Goods seeking
registration.
(7) Copies of supply orders for five years placed by Power Utilities/State / Central PSUs.
(8) Complete list of Goods for which registration is sought.
(9) The Vendor shall furnish performance certificates from the users for satisfactory
performance of the Goods for which registration is sought for a minimum period of
three (3) years prior to the date of application for registration.
(10) Valid Factory license certificates.
(11) List of Machinery installed and proof of their Monthly and annual production
capability for each Goods.
(12) Details of Orders in Hand received from other Purchasers as on the date seeking
registration.
(13) Details of Manufacturing and Testing Procedures, Document Management Plan,
Quality Management etc followed by the Vendor
(14) Quality assurance plan being followed by the Vendor
(15) Technical specification of Goods with drawing
(16) Attested Copies of valid type test certificate (complete in all respects from CPRI or
other NABL accredited independent testing agencies) for tests carried out as
stipulated in the latest version of BIS/IEC for the respective products. For imported
Goods, type test certificates from accredited independent testing centres shall be
acceptable provided they are submitted with English Translation. The Test Certificate
shall be within five years as on the date of registration and shall remain valid during
the period of registration. (Note: Revalidation of the test certificates on expiry during the
registration period shall be done by the firm without fail)
(17) Details of qualified personnel, Tools & Plant of the manufacturer etc
(18) Testing equipment and facilities available

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(19) Valid quality certification from BVQI/DNV/BIS.
(20) Approval certificate of the product by BIS/IEC
(21) The application for registration should accompany the details of black listing by
KSEBL or any other organization, if any.
(22) The Vendor shall furnish an undertaking that he / she shall not resort to restrictive
trade practices or collude with stakeholders of KSEBL in a way that is detrimental to
the interest of KSEBL. (Annexure-E)

2.5 Assessment of Limit for participation in bids

For each Goods the vendors shall furnish the MAAT (Minimum Average Annual Turnover)
for the previous three years for each type of Goods for assessment of the upper ceiling limit
for participation in the bids.

Each Vendor shall be allowed to participate in the bids up to its MAAT (Minimum Average
Annual Turnover) for the best three years out of previous five years for each Goods for
which he has been qualified.

All other pre-qualification requirement will be evaluated based on Annexure-A&B.

2.6 Vendor Approval Committee

2.6.1 After evaluation of Vendors through an objective evaluation based on Annexure-

C&D, by respective committees, for each type of Goods specifying the Financial,
Technical and General competencies of Vendor for each type and class of Goods as
mentioned in the Vendor registration process document, the registering authority will
put up proposal to Vendor approval committee for approval of registration.

2.6.2 The Vendor approval Committee shall be comprising of

 Director (Finance) as Chairperson
 All Full time Directors ( Members)
 Financial Adviser (Member)
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  LA&DEO (Member)
 Chief Engineer (SCM) as the Convener of the Committee.
2.7 Renewal of Registration

Vendors who desire to renew the registration shall submit application in the prescribed form
(Annexure-B) six months before expiry of the validity of registration along with the
prescribed documents.

Application for renewal of registration shall be submitted with the documents prescribed
above.

2.8 Cancellation of Registration

KSEB shall have absolute discretionary powers to cancel the registration of a Vendor in the
following circumstances.

 Any information or document submitted by the Vendor is subsequently found false.

 If the Vendor does not participate continuously in three Bids without valid
justification.
 Poor performance of the Vendor in execution of contracts or Fails to execute a
contract partly or fully or fails to execute it satisfactorily.
 Poor track record in the after sales support of the supplied Goods or failure in
properly attending to a service call.
 Inadequate or poor performance of the Goods / service provided under contract with
the KSEBL.
 If declared bankrupt or insolvent.
 No longer has the technical staff or equipment considered necessary.
 Fails to update the validity of the relevant certificates during the period of registration.
 Blacklisting of the Vendor by KSEBL or any other power utilities / PSU’s

2.9 Fees for Registration/Renewal

Non-refundable fees at the following rates shall be levied from the Vendors for
registration/renewal of registration. Fees shall be remitted in favour of Vendor Registration
authority by such method as specified in the form of application.

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Note: The above rates are subject to revision by Board, if required

2.10 Certificates for Registration/Renewal

A certificate of Registration/renewal of registration shall be issued to the registered Vendors.

The certificate in Annexure-E and the list of registered Vendors uploaded in the website shall
invariably contain the following details.

 Name of Vendor with CIN no (in case of companies) / SSI Reg No (for SSI)

 Full postal address with e-mail id & contact no.

 Registration no. & date in the Register of Vendors

 GST No

 Goods for which registration has to be given in the following format

Sl. No Description Type/capa HSN Goods/A Qualified PAC

of Goods city/model code sset code limit up to in
number Lakhs

 Due date of expiry of registration

 Existing Vendor Rating Index, if done earlier

Copy of the valid registration/renewal of registration certificate shall be attached with each
and every Bid submitted by the Registered Vendor.

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 2.11 Refusal of Registration or Renewal

Application for registration/renewal of registration relating to the following Vendors shall be

summarily rejected.

 Vendors who are suspended by Power Utilities or Central or State Government

or PSU’s, if their request for registration or renewal falls during their period of
Suspension
 Vendors who have been blacklisted by the KSEBL or other Power Utilities or
Central Government or any State Government or PSUs.
 Newly formed companies providing Standard or regular Goods who have not
commenced supply of Goods.
 Commission agents.
 Any other matters which has lead to cancellation of registration as stated above

2.12Blacklisting of Vendors

The following registered or non-registered Vendors shall be blacklisted for FIVE years from
business dealings with the KSEBL.

 Vendors who are banned or blacklisted by State/Central Government/PSUs or other

Power utilities will be banned as above or for the period mentioned in the black listing
order of the concerned entity, whichever is later.
 Vendors who default supplies habitually.
 Vendors with poor track record of after sales support
 Vendors supplying Goods having poor performance in field
 Vendors who have not participated in three consecutive bids for which they are
eligible to participate.
 Vendors which engage in malpractices like bribery, corruption, fraud, substitution of
bids, evasion or habitual default in payment of any tax levied by law.

In case the Vendor back out of the commitment or has issues as indicated above, besides the
steps for blacklisting of the firm, all the expenses and damages caused to KSEBL by any
breach of contract by the Vendor shall be paid by the Vendor to KSEBL, and may be
recovered from him under the provisions of the Revenue Recovery Act in force in the State.

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The period of blacklisting of the defaulting Supplier/Vendor will be five (5) years or for
indefinite period as decided by the Board and will involve immediate cancellation of all
business with the Board. The blacklisting of the Supplier/Supplier should be notified to all
Power Utilities in the country. The names list of suspended / blacklisted / banned Vendors
shall be uploaded to the website of KSEB. The list may be forwarded to the purchase
departments of other utilities also.

2.13Validity of Registration

Once a firm has been registered as a Vendor, such registration shall remain valid for three
years from the date of registration, unless it is cancelled by KSEBL for valid reasons. Date of
registration shall be the date of intimation by KSEBL as registered Vendor in Form-E. The
list of Registered Vendors shall be uploaded to the website of the KSEBL.

2.14Change in address of the Vendor

Change in address of the Vendor shall be communicated to KSEBL within 15 days of such
change with valid supporting documents.

2.15 Vendor Rating (VR)

The philosophy of Vendor Rating aims to help the Board to procure Goods from a Vendor
who is able to deliver the products of good quality, at competitive prices with deliveries at a
stipulated pace and post delivery service, for achieving planned and operational targets.

Assessment of these qualifications of a Vendor, on a single point scale, to help grading the
performance of a Vendor is called Vendor Rating. The Vendor getting the highest rating will
be regarded as V1 (similar to L1) and the others as V2,V3,V4 etc in the descending order of
their rating for the purpose of distribution of quantities of Goods to be ordered and for
inviting limited tenders as the case may be. However, the ordering rate (price) for
procurement will be the lowest evaluated price out of the rates quoted by the vendors
selected for ordering on Vendor Rating basis.

2.16 Maintenance of Vendor’s Rating

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The purchasing authority or an assigned officer shall maintain a close watch on the
performance of each Vendor against each purchase order placed on him. For this purpose, a
‘Vendors’ Rating Card shall be maintained. The details indicating the Vendor name,
description of Goods supplied, PO number, Date of PO, Quantity ordered, rate, stipulated
schedule of deliveries shall be filled in the Rating card by the purchasing authority at the
time of placement of the purchase order. Further details regarding quantities offered for
inspection/despatch and quantities accepted there against, will be noted in respective
columns from time to time and the quantity/quality ratings will be worked out for each
consignment as well as for the entire supply on completion of the contract.

Vendor Rating will be calculated as per the formula given below:-

VR = 0.6 PR + 0.3 QR + 0.1 SR

Where PR = Price Rating

QR = Quality Rating

SR = Service Rating

The formulae for working out the Price, Quality and Service rating shall be as follows:-

Price Rating

Price rating shall be worked out as follows:-

PR = PL
PQV

Where PL = Lowest price obtained for the Goods being bidded.

PQV = Price quoted by the Vendor being evaluated for bidded Goods.

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Quality Rating
The Quality rating of the Vendor shall be arrived as the product of Quantity Rating and
Performance rating (Quantity Rating * Performance Rating). A rating less than 50% on
Quality rating and Service rating on consecutive three contracts will lead to disqualification
of the registration of the Vendor.

QR = Quantity Rating x Performance Rating

Where,
Quantity Rating = Quantity offered /supplied on due date x 100
Quantity due on that Date

Performance Rating = Quantity with no failures within Contract period x 100

Quantity supplied
In working out the quantity rating, the quantities offered on each occasion will first be counted
against the quantities already due on earlier occasions and the net quantity after such deductions
will alone be counted against that due on the latest occasion. (ie late supply is not considered in this
evaluation). For example let 10 panels are required in the first lot, but only 8 sets were delivered.
Subsequently let 11 panels are delivered in the second lot against the requirement of 10 panels, but
only 9 panels will be considered for rating evaluation.

If no supply has been made by the Vendor till the stipulated initial delivery schedule, obviously no
QR can be worked out and in such cases QR will be taken as ZERO.

Service Rating
The Service rating of the Vendor shall be arrived based on the performance quality of the
after sales support / service offered by him for the Goods supplied against the reported
complaints
Service Rating = Quantity rectified within the Contract Period x 100
Quantity that reported faulty during contract period

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The Rating of the Vendor arrived as above will be indicated in a column provided for
the purpose in the Rating Card.

Note: This Vendor rating will be given weightage during the renewal of the registration, for
inviting limited tender/ quotations, for splitting/ apportioning of bidded quantities etc..

2.17 Documents to be submitted by Registered Vendors

The bidders already registered with KSEBL should submit the following documents while
participating in tenders of KSEBL.

1. Latest solvency certificate and updated annual accounts post registration

2. Acceptance of delivery schedule

3. Price schedule

4. Acceptance of KSEBL's payment, penalty and warranty conditions.

5. Compliance to Guaranteed Technical Parameters (GTP) and specifications.

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 Chapter 3

GENERAL PRINCIPLES OF PROCUREMENT

3.1 Principles of Procurement

The competent authorities processing the purchases shall adhere to the prescribed procedures
and maintain financial propriety. The Purchasing Officers shall observe adequate vigil to
safeguard the interest of KSEBL. The following principles set the framework for managing
procurement requirements and also within which Officers entrusted with the function must
work.

3.1.1 Transparency

Transparency in procurement means that the information on the procurement process must
be available to everyone unless there are valid and legal reasons to keep certain information
confidential. The bid document must contain sufficient details so that the interested parties
shall be able to understand it, in order to determine if they are qualified to compete and all
other pertinent details regarding the purchase.

3.1.2 Integrity

The principle of integrity is twofold. It should include the integrity of the procurement
process and also the integrity of the officers involved. Bidders should have a clear
understanding of the requirement and know how they will be evaluated.

3.1.3 Economy

This principle places emphasis on the need to manage KSEBL funds responsibly such that
the prices paid for Goods are reasonable and represent good value for the funds expended on
them.

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3.1.4 Openness

The principle of openness means that procurement opportunities should be open to all
qualified firms and individuals concerned. Confidential and proprietary information of
bidders participating in the procurement process shall not be available to public.

3.1.5 Fairness

Decision making and actions should be unbiased and there should be no preferential
treatment. All bids should be considered on the basis of their compliance with the terms of
the documents. A contract should only be signed with the bidder whose bid is compliant and
responds best to the objectives of the requirement in terms of technical capability and price.

3.1.6 Competition

This principle is that competition leads to reasonable price, quality and good for the
company. All qualified bidders should be allowed to participate by submitting their bids.
Procurement requirements should be widely disseminated to increase the chances of a good
market response leading to the award of competitively priced contracts.

3.1.7 Accountability

Accountability means to be responsible for one’s actions and decisions and have obligation
to answer to a designated authority on the consequences of those actions and decisions.

3.2 Authorities competent to procure Goods

3.2.1 The authority to procure Goods is delegated to the officers in KSEBL according to the
Administrative & Financial powers delegated to them as per Board Orders issued from
time to time.
3.2.2 Various Committees constituted by KSEBL from time to time shall exercise the
powers assigned to them for procurement of Goods in accordance with the guidelines
prescribed in the Manual.
3.2.3 All specific orders of KSEBL related to Purchase from central PSU , Purchase of
spares (proprietary item) etc shall be binding in that respect.

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 Chapter 4
PROCUREMENT PLANNING

4.1 Forecast of Requirement

4.1.1 Adherence to time schedule

Each and every authority of the KSEBL irrespective of whether it is delegated with
powers to purchase any Goods, shall strictly follow the time schedule indicated below
for enabling forecasting of item-wise quantity of Goods required for the ensuing
financial year.

Table1 : Tentative Schedule of activities for Procurement process

Activity Authority Time Limit

Requirement Assessment & Data entry
All subordinate Offices 1st July to 15th July
in the SCM software
Initial Scrutiny of the data Concerned ARU Heads 15th July to 31st July
Detailed scrutiny and finalisation of Corporate Planning (shall
consolidated SBU wise report (Annual coordinate with the 1st August to 15th
Plan with Requirement Schedule) concerned SBU Heads, August
generated from SCM Software Finance and SCM)
15th August to 1st
Preparation of Purchase Plan SCM
September
Submission and Approval of the Full SCM 1st September to 30th
Board September

4.1.2 Assessment of Requirement.

All staff and officers of KSEBL who are responsible for assessment and reporting of
item-wise quantity of Goods required for the ensuing financial year and those officers
who are responsible for scrutinising such details shall exert utmost care and ensure that
the final estimate is not inflated or deflated.

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 Items that are in the pipeline in various stages of purchase shall not be taken into account
for procurement estimation.

4.1.3 Estimation of Goods requirement

Item-wise requirement of Goods for each financial year shall be assessed before 30th
June of the previous financial year.

In order to finalise the total requirement of Goods for the ensuing financial year,
online system for collection and compilation of data in the SCM software shall be
followed. For this purpose planning and scheduling of each work in all the SBUs shall
be properly carried out by the concerned field officers using the SCM software
platform provided for the purpose.

The concerned officers shall ensure sufficient safety stock of fast moving and essential
Goods while preparing the estimates. Safety stock level shall be fixed at a maximum of 15
%, after analyzing historical data.

After assessing the requirement from the field through SCM software, a Committee under
the concerned functional Directors comprising of all Chief Engineers concerned and Chief
Engineer (SCM) shall review the Goods requirement for the ensuing year and finalize the
procurement plan subject to budget allocation. Procurement plan shall contain month wise
details of Quantities and Goods to be procured through Centralized and Decentralized mode.

4.2 Approval of Procurement Plan

The proposal for approval of the Procurement Plan along with recommendation of the
Committee as mentioned above shall be placed before the Board. The approved plan
shall be reviewed by the above Committee periodically to ensure the timely
procurement.

4.3 Sanction for Purchase

Whenever there is a necessity for purchase of Goods, the Purchasing Officers shall
ensure that proper sanction on the basis of budget provision has been issued for such

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purchase. Generally, brand names shall not be mentioned in the sanction for purchase.
Sanction for a project in which the required Goods and their cost are specified in
detail shall be considered as equivalent to sanction for procurement of the Goods
included in the approved project. Wherever it is economical and administratively
convenient, procurement may be made through GeM (Government e Market) also.

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 Chapter 5

GENERAL GUIDELINES FOR PROCUREMENT

5.1 Procurement Process

Depending on the nature of the Goods required, quantity, value involved and the
period of supply, the purchasing authority shall fix the appropriate mode of purchase
as per the prevailing delegation of financial powers and standing instructions of the
KSEBL. The various modes of purchase to be adopted for this purpose are indicated
below.

5.2 Mode of Procurement

The mode of procurement shall be decided in accordance with this manual.

Purchasing officers shall not resort to piece meal procurement to circumvent the
provisions in this manual, in normal circumstances. Emergency procurement
processes shall be initiated only when adherence to the procedure enunciated here is
likely to lead to breach of timelines imposed by relevant statutes and regulations. In
such cases, reasons shall be recorded properly and subsequently got ratified by Full
Time Directors.

5.3 Purchases without Quotations

In situations when any Goods are urgently required, purchase without inviting
quotations/tender may be made subject to the condition that the estimated cost of such
Goods does not exceed the limit delegated by KSEBL, prevailing at the time of
purchase. Such a system of purchase shall not be followed as a common practice.
Piece meal purchases to avoid quotation/tender shall be avoided. The Purchasing
Officer shall record full justification for such purchases in the file.

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5.4 Procurement on Rate Contract

Procurement of a decentralised item may be carried out without inviting quotations,

through rate contract, at the rate published by the centralised procurement authority
available in the SCM SARAS software of KSEBL, based on the lowest basic rate
recorded for that item, in the previous three months. Purchase on rate contracts shall
be made after collecting necessary security deposit.

5.5 Purchase by inviting Quotations

If the cost of Goods is within the delegated financial powers of the purchasing
authority concerned, the same may be purchased by inviting quotations from
registered Vendors. Procurements on the basis of quotations shall be made only if a
minimum number of three competitive quotations are received.

5.6 Single Tender

In single tender system of purchase, tender may be obtained from a single

manufacturer or agent of the manufacturer in respect of the particular Goods or
proprietary Goods. Single Tender system shall not be followed as a common practice.
It shall be resorted to only in any of the following special circumstances.

 The Goods required are manufactured by a single manufacturer only so that there is
no possibility of getting competitive bid. Such bids are to be accepted from original
equipment manufacturers (OEM) or for procuring proprietary items, where no
alternate substitute exists.
 It is unavoidable to purchase the Goods from a particular source due to emergency
and to safeguard the interest of KSEBL.
 For standardisation of machinery or component or spare part or Goods on the advice
of a competent expert or expert committee.

In the event of resorting to Single tender system in exceptional circumstances, full

justification shall be recorded in the purchase file and permission may be obtained
from next higher authority for doing so. Concrete assurances, terms and conditions
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 regarding supply of spares and accessories required for items thus purchased shall be
made part of the bid and subsequent agreement. Spares / accessories for proprietary/
OEM items which were procured prior to this manual may be purchased as per the
original conditions at the time of purchase.
Single response to an open/limited tender cannot be termed as single tender.

5.7 Limited Tender

Limited tenders invited shall be invited from all the registered vendors in respect of
the particular Goods. All the approved vendors for the particular Goods shall
invariably be intimated in writing/e-mail/e-tender site as the case may be. The
purchasing authority shall ensure that registered vendors receive the bid documents
and that they will get a minimum of 10 days for submitting their offers after receipt of
the bid documents. If the number of bids received is less than three, extension of time
may be allowed in the first instance by issuing notice to all vendors including those
who have already submitted bids.

In case the total number of bids received is less than three even after the extended
period, the bids received as on the extended date may be processed and finalised on
merits.

If the total number of registered Vendors is less than five for an item of Goods,
procedure for open tender detailed in this chapter shall be followed.

If the bids received in a limited tender process are unacceptable due to financial or
other reasons, the purchasing authority is empowered to cancel the process and opt for
open tender.

Note:

However if a registered Vendor is not participating in consecutive three bids with

their valid offers, their registration to that particular Good /segment of Goods will be

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 cancelled without intimation. The Vendor will be given a notice to this effect when
they failed to participate in two Tenders for which Vendor was eligible to participate.

Notwithstanding to any of the above, KSEBL is at liberty to resort to open tender in

appropriate cases.

5.8 Global Tender

In the following situations Global Tenders shall be invited.

 Required Goods are not available within the country

 Available Goods within the country are of inferior quality
 More competitive bids are expected from abroad

In the event of inviting Global Tenders, copies of the Tender notice may be forwarded
to appropriate Indian Embassies abroad and Foreign Embassies within the country with
request for publicity, besides resorting to other sources of publicity.

5.9 Open Tender

Open Tender system shall be followed for procurement of Goods as per the delegation
of powers prevailing in KSEBL. Tender notice shall be published in print media,
website and other possible sources of publication. Besides, such tender notice may be
sent to all registered vendors in such a manner that Vendors will get a sufficient time
period for submitting tenders. If the cost exceeds the financial limit prescribed for
inviting quotations, the Goods shall generally be procured through open tender
system. On occasions when the Purchasing Officer considers that open tender is
beneficial in the interest of KSEBL, open tender system shall be followed, even if the
delegation of powers permit invitation of quotations or limited tender.

If the number of tenders received is less than three, the time limit for submitting
tenders shall be extended in the first instance adopting the same publicity given to the
original NIT.

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 In case the total number of tenders received is less than three even after the extended
period and purchasing authority cannot resort to re-tender after the extended period
for valid reasons then the tenders received till the extended date may be processed and
finalised on merits after recording reasons.

5.9.1 E-tenders.

E-tender system shall be followed in the purchases of Goods costing above the amount fixed
by the KSEBL from time to time.

5.9.2 Manual Procurement Process

For procurement of Goods having total value less than Rs 5 lakhs, manual tendering
system may be followed. Single part tender system shall be followed in such case.
During manual tendering process, the bids received shall be kept in the safe custody
of the Purchasing Officer or other officer authorised by him.

5.10 Preparation of Tender Documents:

Tender/Quotation Notices shall be carefully drafted so that every tender notice shall
invariably contain the salient features of the Goods required, giving a clear idea of the
requirements and other information required by the prospective bidders.
Tender/Quotation notices may be issued in the prescribed forms with suitable
modifications/additions, if any. The Purchasing Officer shall prepare the tender
documents as per the standard bidding documents (SBD) published by the KSEBL. The
Notice Inviting Tender (NIT) shall be published in leading dailies and KSEBL website as
per the format for NIT is given as Annexure-H.

5.10.1 Technical & other Specification in terms of Functional Requirements

 Technical as well as other specifications of required Goods shall be clearly indicated

in the tender documents.
 As far as possible standard specifications shall only be stipulated in the tender
documents.

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 Actual need with reference to functional requirement, essential end use of the item
and such other details shall be taken into consideration while incorporating technical
specification in the tender documents.
 Dimensional specification of the Goods shall be accurate with reference to the
effective use of such items and shall avoid specification of short/excess dimensions.
Dimensional specifications shall be indicated in metric system only.
 Wherever standardisation (BIS/ISO/IEC etc.) is available in respect of the procuring
items, requirement of such certification shall be indicated in the tender documents.
 Specification shall not contain any brand name, make or catalogue number of a
particular manufacturer in general except in cases where inclusion of such details is
inevitable, owing to technical reasons. Test certificates, if any necessary, in respect of
the Goods to be procured shall clearly be indicated in the tender documents.

5.10.2 Clarity in Specifications

Technical compatibility & efficiency shall be clearly defined in the tender

documents without ambiguity. In the case of Goods for which technical and other
specification will not convey the actual requirement, drawings may also be attached
with the tender documents to give a clear idea of the required item. Suitable
stipulations for submission of advance sample (before starting bulk production) by
the successful bidder shall be incorporated in the tender document. Clarifications
can be issued as corrigendum before the stipulated date mentioned in the tender
documents.

In order to ensure maintain the standards of technical specifications for Goods, the
Specification Approval Committee (SAC) constituted for each major item of
purchase shall review and update the specifications with proper revision
management at least once in two years. The committee may be consulted for
clarifying the technical matters during the course of a Contract, including pre-bid
clarifications on technical matters, if required. Drawing approvals are also to be
given by this Committee.

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 5.10.3 Training, Technical support, Post-sales service, Annual maintenance

Technical support, post-sales service, annual maintenance contract and such other
requirements shall be clearly specified in the tender documents. Penalty for
inadequate technical support, post-sales service may be mentioned.

5.11 Earnest Money Deposit

In all cases of Open Tenders and Limited Tenders for procurement of Goods, Earnest
Money Deposit (EMD) at the prescribed rate of the total cost of procurement (PAC)
shall be collected from the Bidder in the mode prescribed in the Notice Inviting
Tender except from category of Bidders specifically exempted by the KSEBL from
time to time.
5.12 Amendments/Corrigendum:

Amendments to a tender shall be done for extending dates, and/or modifying the scope or
terms and conditions. All amendments shall be carried out with the approval of the
competent authority. Any modification to a published tender shall be done only through a
Corrigendum at least one week before the due date of the submission of Bid.

In situations when there is significant change in the bid document consequent to the
modification/amendment or when the time left for submitting bids after such
modifications/changes is insufficient for the prospective bidders, time limit shall be
extended suitably. Suitable changes shall be made in the time schedule for opening of
bids, validity period of tender/EMD.

5.13 Pre-bid meeting of bidders

The Purchasing Officer shall have the discretion to convene Pre-bid meeting with
due intimation in NIT.

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 5.14 Bid opening and evaluation:

Only official(s) authorized by the Purchasing Authority shall open the bid at specified
schedule. A register in the format prescribed in the Annexures -K & L shall be prepared and
submitted to the Purchasing Officer.

5.15 Preliminary verification of Bids

Once the bids are opened, the Purchasing Officer shall verify the following :

1. The Receipt of EMD, Bid submission Fee and its validity

2. The scanned copy of Bid agreement

5.16 Opening of Technical Bid:

The Technical Bid of only those Bidders who conform to the conditions prescribed as
above shall be opened by the Purchasing Officer or an authorised officer as the case may
be.

5.16.1 Techno-Commercial Evaluation:

The bid documents shall be evaluated for techno-commercial compliance as per the
bid conditions and the bidders shall be selected after considering the remarks of the
Finance / Legal wing if required.

5.17 Opening of Price Bid:

The Price bid of only those bidders who conform to the conditions prescribed as above shall
be opened by the Purchasing Officer or an authorised officer as the case may be. The bidders
or their duly authorized representatives are having option to be present at the time of opening
of bid.

5.17.1 Price Bid evaluation and placing of Purchase Order:

The price bids are opened on the date and time specified and after evaluating the
same, summary shall be prepared. Purchase Order shall be placed accordingly to the

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 eligible bidder and the EMD of unsuccessful bidders shall be refunded / settled. The
said purchase order shall contain a specific time limit (say 15 days) within which the
successful bidder is bound to enter into a formal agreement with the Purchasing
Officer.

5.18 Performance Security Deposit (PSD): The successful Bidder shall furnish
performance security deposit equivalent to 10 (ten) percent of the Contract Value before
signing the Agreement. If PSD is furnished in the form of BG as per Annexure-N, it
shall be valid till the end of Contract Period, wherein the Contract Period means
scheduled delivery period with sanctioned extensions, if any, and Warranty / Guarantee /
Defects Liability period prescribed in the Purchase Order. Performance Bank Guarantee
shall be released within three months after the contract period incorporated in the purchase
order after assessing the Supplier's liabilities to KSEBL.

5.19 Execution of the Agreement: The successful bidder shall enter into a formal
agreement with the Purchasing Officer in the format prescribed in Annexure-O within
the time limit specified in the Purchase Order said above after remitting the requisite
Security Deposits, failure on which will nullify the contract without any further
communication.

If Security Deposit is furnished as Bank Guarantee, it shall be submitted in the

prescribed format as per Annexure-M and the same shall be kept under the safe
custody of the Purchasing authority after ensuring the validity of the said documents
with the banks concerned, maintaining proper registers.

5.20 Re-Tender

In cases where there is no bid or if bid/bids received is/are below the required number
(less than two), till the last date of acceptance, then KSEBL shall either opt for re
tendering or extending the last date of acceptance by 10 days (7 days in the case of
limited tender). Bid received during the first invitation shall not be opened in such
cases. If no bid is received during the extended time, re tender shall be resorted to as a

Page 40
normal course. Before re tendering, KSEBL shall analyse the possible reasons for the
poor response of bids, the tender conditions, restrictive clauses, and lapse of adequate
publicity. In the case of re tendering, the tender submission days shall be cut short to
14 days.

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 Chapter 6

DELIVERY OF GOODS

6.1 Delivery Period

6.1.1 The period for delivery of the Goods ordered and completion of any allied service(s)
thereof (like installation and commissioning of the equipment, operators’ training, etc.) are to
be properly specified in the contract with definite dates considering factors like
drawing/document approval, testing and factory visit (if required as per bid conditions) as
per the time schedule specified below and the same shall be deemed to be the essence of the
contract.

Due date for signing of agreement along 15 working days from the date of
with relevant documents like Accepted Purchase Order
PO, Security Deposit, Power of
Attorney, JV agreement (if applicable)
etc
Due date for submission of Sixty (60) days from the date of
drawings/documents for approval Purchase Order or as specified in the bid
Due date for approval of Ninety (90) days from the date of
drawings/documents Purchase Order

6.2 Sample

6.2.1The Purchasing Officer shall specify the time limit within which the sample of the
Goods, if required, in the bid. In case, where an advance sample is required to be approved
under the bid, the bidder shall submit the sample to the purchaser within the time specified in
the bid. In the event of the failure of the bidder to deliver the advance sample by the date
specified in the bid, the Purchasing Officer shall cancel the bid.

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6.2.1 In the case of samples to be produced after the acceptance of the bid, the same has to
be complied within the time schedule specified in the bid. In the event of the failure of
the Supplier to deliver the sample by the date specified in the bid, the Purchasing
Officer shall cancel the contract and forfeit the Security Deposit.

6.2.2 The Supplier shall supply all samples free of cost. If the sample supplied is rejected
after examination and test, generally the sample or whatever remains of it will be
returned to the Supplier at his cost upon his specific request made within thirty (30)
days from the date of intimation of rejection.

6.3 Packing & Marking as per IS

6.3.1 The Supplier shall ensure that the Goods will be sufficiently and properly packed for
transport by rail, road and sea so as to prevent any loss or damage on arrival at the
respective destination. The packing/marking of the Goods shall be done by the
Supplier at his expense as per bid.

6.3.2 All packing cases, containers, packing and other similar Goods will not be returned
unless otherwise stated in the bid.

6.4 Delivery of Goods

6.4.1 The term “delivery” shall mean delivery of the Goods of required standard and quality
as per the delivery schedule at the specified destination / place of delivery indicated in
the Purchase Order.

6.5 Extension of Delivery Period

6.5.1 The time and the date for delivery of the Goods stipulated in the bid shall be the
essence of the contract, and delivery must be completed not later than the dates
specified. Generally, if the Supplier is unable to complete the supply within the
stipulated delivery period, the penal conditions as per the bid will be imposed.
However, on request by the Supplier in writing, the Purchasing Officer may extend

Page 43
 the delivery period, without invoking penal conditions, on valid reasons (to be
recorded) on a case-to-case basis.

6.5.2 In case, the delivery period is extended, the same shall be communicated by way of an
amendment to the Purchase Order with specific intimation regarding imposition of
penal provisions, if any. The amended order has to mention that, no extra price or
additional cost will be paid to the Supplier for the period so extended and the Supplier
has to accept the amended Purchase Order unconditionally within the time specified.
On failure, original provisions as per the contract will be invoked.

6.6 Despatch of Goods after expiry of Delivery Period

6.6.1 In the case of Goods despatched after the expiry of the delivery period, the purchasing
officer reserves the right to accept or reject the same. In case the Goods are accepted,
the payment will be made as per the provisions in the Purchase Order/Agreement.

6.7 Transit cum Storage Insurance

6.7.1 The Goods should be insured at the Supplier’s cost to the destination including 60
days storage at KSEBL’s stores after delivery of Goods.

6.7.2 Despatch Documents for Receipt of Goods

The Supplier has to ensure that all the relevant despatch documents/information of Goods
despatched are forwarded to the designated authority well in advance, so as to track the
movement/acceptance of Goods.

6.8 Force Majeure

In case the KSEBL is not able to discharge its obligations from time to time in respect
of this contracts due to reasons beyond the control of KSEBL, the Supplier is not
eligible for any compensation.

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6.9 Penal Provisions

In every bid, there should be suitable provisions regarding the imposition of penalty and
liquidated damages in the case of delays/failure in supplies and performance of the Goods.
Such imposition of penalty and Liquidated Damages will be without prejudice to the other
remedies available to the Purchaser under the terms of the contract.

6.10 Termination of Contract

6.10.1 The contract shall be terminated by the Agreement Authority if any of the conditions
in the bid documents, purchase order and its amendments, if any and agreement is
violated by the Supplier and the same shall be intimated to the said Supplier. After
termination of the contract, KSEBL will be at liberty to arrange alternate purchase of
the Goods at the risk and cost of the Supplier.

6.11 Foreclosure of Contract

If KSEBL does not require the whole or part of the quantities contracted at any time, after
the award of the Contract, the Purchasing Officer shall give notice to the Supplier in writing
to that effect. The notice shall be issued thirty (30) days prior to the scheduled delivery date.
There upon, the Supplier shall be paid at Contract rate for Goods already supplied and for
those quantities in respect of which despatch clearance has been issued. The Supplier shall
not have any claim to any compensation what so ever, on account of any profit or advantage
which he might have derived had he supplied the entire Goods.

6.12 Settlement of Grievances and Disputes

If any dispute arises in respect of the Contracts, the Purchasing Officer and the Supplier shall
amicably settle the same. The dispute, if unresolved, shall be referred to the Grievance
Redress Committee (GRC) to be constituted by KSEBL for redressing such disputes. If the
Supplier is still aggrieved, then the Civil Courts at Thiruvananthapuram shall have the
exclusive jurisdiction to decide.

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 CHAPTER 7

QUALITY ASSURANCE AND QUALITY CONROL

7.1 Quality Assurance

The Quality Assurance (QA) process is needed to ensure process quality during
manufacturing and inspection stage in order to satisfy the standards of quality laid
down and to meet the purpose for which it is being procured while resorting to
procurement of Goods.

7.1.1 The Purchasing Officer shall ensure that the Goods which are intended to be procured
have been manufactured as per the relevant BIS/International standards & technical
specifications and are capable to meet the required performance standards. To achieve
the same, the bid document should specify the standards, details of inspection and
tests to be carried and stages and manner for carrying out the same.

7.1.2 Inspection has to be resorted to wherever necessary to ensure that the quality,
functions etc of the Goods ordered comply with specifications in bid. The Inspecting
Officer shall be conversant with the Goods, its specifications & Standards.

7.1.3 The Officer authorized to receive Goods should satisfy himself that the Goods are in
conformity with the specifications in the Purchase Order. Any Goods which do not
conform to specification or not as per approved samples or which is damaged or
defective in any respect should summarily be rejected.

7.2 Inspection

Inspection has to be resorted to wherever necessary to ensure that the quality,

functions etc of the Goods ordered comply with specifications in bid.

Any discrepancy, defects, deviations etc noticed during testing shall be duly notified
to the Supplier in writing in order to attend the same as per the conditions in Purchase
Order.

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Depending on the nature of Goods being procured, usually, the following types of
inspection may be adopted.

7.2.1 Stage Inspection: This type of inspection has to be conducted for Goods
having long manufacturing process and for which quality of each component
has to be ensured during manufacturing process such as Power Transformers,
Circuit Breakers etc . These inspections may be carried out as many times as
required for the Goods.

7.2.2 Prototype Inspection: In a purchase order containing bulk quantity for

particular Goods of major equipments/items, a prototype inspection shall be
conducted as per approved drawings and GTP before issuing sanction for bulk
manufacturing. This procedure is preferred for all new designs proposed by
vendors.

7.2.3 Pre-Dispatch Inspection: When the Goods ordered are ready for Factory
inspection the purchaser will witness the various factory acceptance tests as
per approved Factory Acceptance Test (FAT) procedures. Only after successful
completion of the FAT, the clearance for dispatch of Goods shall be issued.

7.2.4 Inspection of Goods on receipt at consignee’s / user’s premises: Such

inspection is done on receipt of Goods at site before accepting the same
against the quantity and quality ordered as per the specification and standards.
Also samples will be taken and sent for Site Acceptance Tests(SAT), if
required, as per the Site Acceptance Test procedures. Only Goods accepted as
above shall be utilised for consumption.

7.2.5 Post installation Inspection: The inspection of the Goods installed at site
shall be carried out by competent authority for checking its readiness for
commissioning and discrepancies noticed shall be recorded and brought to the
notice of Supplier.

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7.2.6 Testing & Commissioning of the Goods: The functional performance and
output of the Goods shall be ascertained during the testing and commissioning
of the same as per the Guaranteed Technical Particulars specified as per
accepted bid.

7.2.7 Inspection Test procedures and Formats

All Test procedures as per relevant standards shall be submitted by the Supplier to the
Purchasing authority 20 days in advance along with the inspection call letter for
approval.

Complete lot of the Goods or designated batches of Goods as per Purchase Order shall
be offered for inspection, as per the delivery schedule in the contract. All cost of
testing equipment, tools, manpower, Goods etc used during any of the above
inspection/testing shall be the responsibility of the Supplier as a part of the contract.

In special cases the purchase authority can waive the FAT safeguarding the interest of
KSEBL and reason must be recorded for such waiver.

7.2.8 Outside Testing Laboratories

If necessary to conduct type test, acceptance test or special test at outside laboratories,
when facilities for these tests are not available in-house with the Supplier, he may
obtain prior approval of the testing lab from KSEBL along with required Test
procedures and formats. Cost of such tests also would be borne by the Supplier.

7.2.9 Joint Investigation against Complaints relating to Quality / Other issues

In case a written complaint is received from the Supplier disputing rejection of Goods
by the purchaser’s inspecting officer, the same should be jointly investigated by a
team consisting of an authorized representative of the purchase department, a senior
representative of the inspecting agency, who is well conversant with the Goods and an
authorized representative of the Supplier. Detailed procedure to be followed in this
regard and the format of the joint inspection report (to be signed by all the team

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 members) are to be prescribed by the purchasing Department and the matter processed
accordingly for further necessary action.

7.3 Inspection and Dispatch

The Inspecting Officer after inspection of the Goods should submit a sealed Inspection
Report along with inspection summary as per format specified in Annexure-S with specific
recommendation for acceptance / rejection to the Purchasing Officer immediately after
satisfactory completion of inspection and witnessing tests. Representatives of both
Supplier/Manufacturer and KSEBL shall sign the test/inspection formats/Reports in proof of
the testing/inspection carried out. The inspected Goods, if required as per the bid conditions,
shall be stamped, labelled, marked or sealed, in such a way as to make subsequent
identification of accepted lots easy for the consignee/user. Rejection notes shall be issued by
the purchasing authority immediately for the Goods not meeting the contract requirements.
Inspection Report shall be sent to the purchasing authority within 15 days from the date of
inspection. After verification of the Inspection Report Purchasing authority shall issue
Goods Dispatch Clearance Certificate (MDCC) for the accepted quantity.

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 Chapter-8

PAYMENT FOR SUPPLY OF GOODS

8.1 Payment

8.1.1 Payment for supply of Goods shall normally become due only on acceptance of supplies in
full by the Purchasing Officer. Payments shall be made promptly as per the conditions in the
Purchase Order / Agreement or not later than forty five (45) days, whichever is earlier, after the
satisfactory completion of the delivery and acceptance and submission of proper tax invoice by the
Supplier with all relevant supporting documents and certification of Goods receiving authority in the
ARU (Circle/Division).

8.1.2 In the case of Bidders who are JV/Consortium, the Bidder shall specify the Lead Bidder and
the payment shall be made to the said Lead Bidder only who is executing the agreement on behalf of
JV/Consortium.

8.1.3 All payments shall be made either by RTGS/NEFT only to the Bank Account and Bank Branch
provided by the Supplier. The Supplier shall bear all bank charges related with payment.

8.1.4 In case of Contracts with price variation clause, part payment shall be made as above, but final
bill will be processed only after adjusting all the variation in prices assessed by the Purchaser as per
the IEEMA price variation formulae prescribed in the Purchase Order.
8.2 Advance Payment

Normally, payment for Suppliers shall be released to the Supplier only after all Goods have been
supplied and accepted by the Purchasing Officer.

However, KSEBL may consider advance payments in special cases and shall be limited to maximum
of 10% of total contract value. Interest at prevailing SBI Marginal Cost of fund based Lending
Rate (MCLR) + 3% shall be applicable to all advance payments. Recovery of advance payment
together with interest shall be affected from subsequent bills on pro-rata basis.

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The advance payment shall be released only after obtaining a Bank Guarantee as per format in
Annexure-Q (from Banks accepted by KSEBL) from the Supplier for an amount equivalent to
advance amount and interest.

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 ANNEXURES

Annexure-A Application for Vendor Registration

VENDOR REGISTRATION FORM

1) Name of the Firm & full Address
2) Type of Organisation & Year of
Establishment
3) Goods/ Equipment/ Product for which
Vendor approval/Renewal is sought
A. GENERAL
1) Location of the firm
a) Registered Office
Factory/ Works:
2) Is the firm Registered
Registration No. and date
3) Licensing Authority:
License No. and date
4) Area of the Factory in Sq.Ft.
Area of constructed building in Sq.Ft.
Scope of Expansion (Explain)
5) Name/s of the Product Manufactured:
6) Since how many years they are
manufacturing these products
7) Are the product accredited with
standard Certificate mark like ISC/
ISI/IEC etc.
8) Details of the Type Test Certificates
a) Tests carried out of NABL accredited
laboratory
b) Year and date during which the above
Type tests were carried out
9) Details of Power supply arrangement
a) Name of the Board/ Supply Utility,
R.R.No. and sanctioned load
b) DG set of Capacity
10 Details of the water facilities
)
a) Source-Borewell/ any other source
b) If sufficient quantity of water
available
c) Curing tanker in case of poles
11 Details of Painting process adopted
)
B) PRODUCTION AND TECHNICAL
COMPETENCE:

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a) List of Machinery’s installed with
date:
b) Brief report on the process of
manufacture of the product (Enclose
Flowchart):
c) Is the production fully labour oriented
or semi labour oriented.
d) Is process automation implemented?
If yes, level of automation including
details
e) Do the firm possess manufacturing
capability for the Goods for which
Vendor approval is sought
C) EMPLOYMENT AND TRAINING
Total Strength of Employment
Skilled Labour
Supervisor
Permanent Labour
Temporary Labour
Technically qualified Engineers:
Technically qualified Technicians:
D) QUALITY CONTROL & TESTING:
a) Is there quantity Control Check
during Production?
b) How Quality control is done on the
Raw Goods procured?
c) Is there any Quality Assurance Plan
adopted? If so provide details
d) Are the Technicians trained properly
for testing the product?
e) List of Testing Equipments. Tools and
Plants
f) Are the Testing Equipments, Tools
and Plants Calibrated/ Date of
Calibration?
g) Is there a well established testing
facility for testing the Goods for
which Vendor approval is sought? If
Yes, Provide details of Test facilities
h) List of the routine tests carried out
and witnessed during inspection as
per IS/ IEC Standard
E) CAPACITY:
a) Production Capability
b) No. of orders on hand
c) How many are executed
d) How many orders are on pipe line?
e) List of the Suppliers of raw Goods

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f) Transport facility of finished product
F) FINANCIAL CAPABILITY:
a) Annual Financial Report duly audited
b) Income Tax Clearance Certificate
c) Sales tax clearance certificate
d) Annual Turn-over
e) Profits/ losses for the last three years
f) Value of Total orders on hand yet to
be executed
g) Banking Information
G) PERFORMANCE:
a) List of purchasers/ Orders Executed
b) Quality of supply
c) Whether the firm has submitted
performance certificate from the
public utility?
d) Whether the firm has been
blacklisted/debarred earlier? If so
furnish the details.

Certificate

We hereby certify that the information furnished above is true to the best of my/our
knowledge and belief and enclosed copies of documents as per the given list. We
hereby undertake that in the event of any of the above information found to be false or
incorrect at a later date, KSEB Ltd is entitled to cancel the registration of our firm with
KSEB Ltd/ ban the firm.

Signature of Authorized signatory

Name (in Capital letters)

Place : Designation

Date : Company Seal

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 Annexure-B VENDOR RENEWAL FORM

1) Name of the Firm & full Address

2) Existing Vendor Registration Number
and expiry date
Whether Goods/ Equipment/ Product
for which Vendor Renewal is sought
is similar to the previous one
If not, the following details shall
be filled up
A. GENERAL
1) Location of the firm
a) Registered Office
Factory/ Works:
2) Is the firm Registered
Registration No. and date
3) Licensing Authority:
License No. and date
4) Area of the Factory in Sq.Ft.
Area of constructed building in Sq.Ft.
Scope of Expansion (Explain)

5) Name/s of the Product Manufactured:

6) Since how many years they are
manufacturing these products
7) Are the product accredited with
standard Certificate mark like ISC/
ISI/IEC etc.
8) Details of the Type Test Certificates
a) Tests carried out of NABL accredited
laboratory
b) Year and date during which the above
Type tests were carried out
9) Details of Power supply arrangement
a) Name of the Board/ Supply Utility,
R.R.No. and sanctioned load
b) DG set of Capacity
10 Details of the water facilities
)
a) Source-Borewell/ any other source
b) If sufficient quantity of water
available
c) Curing tanker in case of poles
B) PRODUCTION AND TECHNICAL

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 COMPETENCE:
a) List of Machinery’s installed with
date:
b) Brief report on the process of
manufacture of the product (Enclose
Flowchart):
c) Is the production fully labour oriented
or semi labour oriented.
d) Do the firm possess manufacturing
capability for the Goods for which
Vendor approval is sought
C) EMPLOYMENT AND TRAINING
Total Strength of Employment
Skilled Labour
Supervisor
Permanent Labour
Temporary Labour
Technically qualified Engineers:
Technically qualified Technicians:
D) QUALITY CONTROL & TESTING:
a) Is there quantity Control Check
during Production?
b) How Quality control is done on the
Raw Goods procured?
c) Are the Technicians trained properly
for testing the product?
d) List of Testing Equipments. Tools and
Plants
e) Are the Testing Equipments, Tools
and Plants Calibrated/ Date of
Calibration?
f) Is there a well established testing
facility for testing the Goods for
which Vendor approval is sought?
g) List of the routine tests carried out
and witnessed during inspection as
per IS/ IEC Standard
E) CAPACITY:
a) Production Capability
b) No. of orders on hand
c) How many are executed
d) How many orders are on pipe line?
e) List of the Suppliers of raw Goods
f) Transport facility of finished product
F) FINANCIAL CAPABILITY:
a) Annual Financial Report duly audited
b) Income Tax Clearance Certificate
c) Sales tax clearance certificate

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d) Annual Turn-over
e) Profits/ losses for the last three years
f) Value of Total orders on hand yet to
be executed
g) Banking Information
G) PERFORMANCE:
a) List of purchasers/ Orders Executed
b) Quality of supply
c) Whether the firm has submitted
performance certificate from the
public utility?
d) Whether the firm has been
blacklisted/debarred earlier? If so
furnish the details.

Certificate

We hereby certify that the information furnished above is true to the best of my/our
knowledge and belief and enclosed copies of documents as per the given list. We
hereby undertake that in the event of any of the above information found to be false or
incorrect at a later date, KSEB Ltd is entitled to cancel the registration of our firm with
KSEB Ltd/ ban the firm.

Signature of Authorized signatory

Name (in Capital letters)

Place : Designation

Date : Company Seal

For office use only
Description of Goods Vendor Rating Remarks

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Whether the Vendor registration can be renewed or not(Recommendation of the
verifying authority shall be furnished here)

Annexure-C Factory Inspection& Analysis report

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Annexure-D Vendor Evaluation Format

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 Annexure-E Undertaking to refrain from Illegal practices

UNDERTAKING TO REFRAIN FROM ILLEGAL PRACTICES

Declaration by prospective bidder
I/We ….
.............................................................................................declare
that I/We will not indulge in any unfair/unethical practices including
colluding with the employees of KSEBL, colluding with co bidders
and being a part of any cartel. Further I/We declare that I/We are not
in any way related to any KSEBL’s official who is in charge of or
having control of this contract / registration. If any such
attempt/information contrary to the above from my/our part comes
into notice, KSEBL is having every right to proceed against me/us. In
appropriate cases, KSEBL is having right to make good the loss
because of any such unfair / unethical practice by forfeiting
EMD/Security Deposit after terminating the contract/ registration.
Further I /We understand that in such cases, KSEBL will have right to
blacklist me/us barring me/us from participating either temporarily
or permanently from the tenders floated by KSEBL.

Signature of Authorized person

Page 69
 Annexure-F Certificate of Vendor Registration

This is to certify that M/S ------------------------------------------ is empanelled as a Vendor in KSEBL,

based on your application for empanelment as a Vendor dated ---------------- as per the following
details and conditions mentioned below.

Sl. No Description of Type/capa HSN Goods/A Qualified PAC

Goods city/model code sset code limit up to in
number Lakhs

This certificate of Approval is Valid Till………..……………………………………….only.

Terms & Conditions

1. This empanelment as a Vendor is exclusively for supply of Goods in KSEBL only for the items mentioned
above.
2. This empanelment is not an assurance of giving orders to the Vendor, but it is only qualifying the Vendor’s
eligibility to participate in the upcoming bids for purchase of Goods that are approved as per this certificate,
subject to all terms and conditions specified in the Bid document.
3. Vendor needs to sign, stamp and return a copy of this certificate to KSEBL in token of acceptance within 15
days of the receipt of this correspondence.
4. Prospective Vendors shall not resort to formation of Cartel or Restricted Trade practices during the bidding,
which makes them disqualified from the bidding in KSEBL.
5. All the conditions mentioned and agreed during the Vendor pre-qualification are binding on the bidder
throughout the validity of this approval.
6. KSEBL is having the right to ask the bidder to produce any documents or to inspect the facilities, factory and
offices of the bidder/Supplier at any time during the bidding or execution of the contract, to verify the
credentials of the Vendor/Manufacturer, if additionally required.
7. It is the discretion of the qualified Vendor, whether to participate in the bids floated by KSEBL for procurement.
However KSEBL will be disqualifying the Vendor who is not participating in consecutive three bids for which
the Vendor was eligible to participate.
8. KSEBL is no way responsible for delay in noticing the bids published or submission of the bids in time and
hence requested to keep a watch on the notifications for future bids, which will be published in the E-tender site
www.etenders.kerala.gov.in and in KSEBL website www.kseb.in.
9. You should revalidate all the documents including type test certificates, BIS/BEE/’s’ mark
(wherever applicable) Certificates etc from time to time during the entire period of
registration, without any notice from this office.
10. If there is any change of address, change of name and change in design of manufacturing
process etc of meters the same shall be immediately brought to the notice of this office to

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 update the same. In case of shifting factory premises, you shall have to pay inspection fee (non
refundable) for arranging factory inspection to ascertain the facility.
11. KSEB Limited reserves the right to cancel your registration at any time without assigning any
reason.
12. Please note that this registration neither guarantee for the award of contract/order nor confer
any right to demand of enquiries.
13. The registration will not apply to any of the Goods manufactured in other factories than those
at which factory inspection is conducted in connection with Vendor registration process.
14. If the performance is found unsatisfactory or the firm is blacklisted by any of the power
utilities KSEB Limited reserves the right to cancel your registration even before the expiry of
registration period.
15. For consideration of renewal of registration, you have to submit a Registration form, six
months prior to expiry of the validity of registration duly filled in, along with necessary
documents and registration fee.
16. Our registered vendors have to maintain high standard of integrity and performance in respect
of their dealing and supplies and generally endeavor to give no cause for complaints.
17. Copies of sales tax clearance (both central & state), balance sheet and profit & loss account
statement shall be submitted every year. Factory license certificate shall also be submitted as
and when renewed. Failing which registration will be treated as cancelled.

From now onwards, you can participate in the tenders invited by KSEB Limited under the above
said category of Goods for which your firm is registered. However with this registration, you will
not be exempted from paying of EMD, Security Deposit, Tender document fee etc. applicable as
per tender conditions. You are also requested to register your firm immediately in the e-
tendering portal of Govt. of Kerala (www.etenders.kerala.gov.in), applicable in KSEB Limited
and inform the status to this office at the earliest.

Place
Date:
(VENDOR APPROVAL AUTHORITY)
To
(Name, Address and Phone number of the Vendor)

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 Annexure-G Format of Quotation Notice
Quotation Notice
No. (To be modified as applicable)
Date:

Details of Supply:
Competitive quotations in sealed covers super scribed with the name of Goods and due
date of receipt of quotations are invited by the undersigned for supply of the following
Goods.
1. Specification of Item : (Specify here or attach separately)
2. Quantity of Supply : (Quantity as per this quotation)
3. Probable Amount of Contract (PAC) : (Amount in Rupees…………)
4. E.M.D and mode of remittance : Rs……….. (Cash/DD/BG)
5. Period of firmness : ………… months

6. Delivery period : Within …………. days from the date of order

7. Place of Delivery : ……………… …., ……………

8. Last date and time of acceptance of

quotation :
9. Date and time of opening of
quotation :
10. Sample : Random sample to be tested in the presence
of Designated officer of KSEBL

The successful bidder will have to execute an agreement in stamp paper worth Rs……..
in the prescribed form after furnishing the security deposit of Rs .... within 7 days of
receipt of purchase order. Failure to execute the agreement will result in forfeiture of
E.M.D. unless specifically exempted. Other conditions prevailing in the K.S.E. Board for
similar purchase will be applicable to this contract also.

(Quotation Inviting Authority)

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 Annexure-H Notice Inviting Tender

e-Procurement – Notice Inviting Tender (Two part tender)

BID NO.KSEB/…../eP …../20…

Goods to be supplied

Bid documents available in site

www.etenders.kerala.gov.in

Date of Pre- Bid meeting

Last date & time of Online Submission of Bids

Date &Time of opening of Pre-Qualification

Bids

Probable Amount of Contract

Rs……../-(By Online payment through NEFT/

Earnest Money Deposit
SBI Internet Banking/ RTGS )
As a
Rs………../- +(applicable tax ) single
payment
Bid Submission Fee
(By Online Payment through NEFT/ SBI
Internet Banking/ RTGS )

Can be downloaded from the website:

Availability of Bid forms
www.etenders.kerala.gov.in

All Communications shall be addressed to the (Purchasing Officer) only.

The Bid documents and other details may be downloaded from the website
www.etenders.kerala.gov.in. The EMD of Rs. …………./- and a non-refundable bid document fee of
Rs…………./- (including GST) a total of Rs………………./- (Rupees ………………………………………. only) shall
be remitted online to the account number given in the remittance form provided by the e-procurement

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system for this particular bid. NEFT /RTGS/ SBI Internet Banking are alone allowed as Mode of
payment.

(Bidder should ensure that bid document fees and EMD are remitted as one single
transaction and not separate. Separate or split remittance for bid document fee and EMD
shall be treated as invalid transactions.)
All the bid documents are to be submitted online only and in the designated covers/ envelopes on
the above website. Bids shall be accepted only through online mode in the website and no manual
submission shall be entertained.
The scanned copy of agreement as per Appendix---–General Conditions of Contract and price bid
form mentioned in Annexure--- of Part ---of Tender, executed in Kerala stamp paper worth Rs.200/- each are
to be attached along with the bid. The bid shall be opened online at …………………. Office on the date and
time mentioned above by (Purchasing Officer) in the presence of the bidders /their representatives who
wish to attend at the above address. All other existing conditions related to the bids of KSEB Ltd will be
applicable in this bid also.
Originals of Agreement & Bid Form in Stamp Paper enclosed in a sealed envelope including the bid
number, shall be submitted to (Purchasing Officer) before date and time of opening of Bid.
All bidders participating in the Bid should have a valid Class-II or above Digital
Signature Certificate procured from any Registration Authorities (RA) under the Certifying
Agency of India. Details of RAs will be available on www.cca.gov.in. More details about the e-tendering
procedure will be available from National Informatics Centre, Thiruvananthapuram on all working days
from 10.30am to 5.30pm. (Phone No.0471-2577088, 2577188, 2577388 or 0484-2336006, 2332262
through e-mail:etendershelp@kerala.gov.in). Further details can be had from

……………………. Office…………………
Kerala State Electricity Board Ltd,
…………………………... P.O
PIN
Phone –…………….. Fax: ………………..
Email –……………….

Dated: ……………..
Purchasing Officer
(Designation)

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 Annexure-I Format of Bid Form

FORMAT- BID FORM

(To be submitted along with Price Bid)

Date:

BID NO………… /20….. -……….

To

(Name and Address of Purchaser)

Gentlemen,

Having examined the conditions of contract and specification I/we, the

undersigned offer to supply and delivery of …………………………. in conformity with the said
conditions of Contract and specification for the sum of or such other sums as may be
ascertained in accordance with the schedule of prices attached herewith and made part of this
Bid.
We undertake if our bid is accepted, to commence delivery within ….....days and to
complete delivery of all the items specified in the contract within …....days, calculated from the
date of your purchase order.
If our bid is accepted we will obtain the Guarantee of a Bank in a sum not exceeding …%
of the contract sum for the due performance of the contract.
We agree to abide by this bid for a period specified under ………. of Part – I and it shall
remain binding upon us for acceptance by the KSEBL, at any time before the stipulated expiry. .
Until a formal contract is prepared and executed, our offer as per the price bid shall
constitute a binding contract between us.
We understand that you are not bound to accept the lowest or any other bid you may
receive.

Dated this …..............days of …............2017.

SIGNATURE
(In the capacity of)
Duly authorised to sign bid for and on behalf of:

Witness:

Address:

Signature:

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 Annexure-J Format of Bid Agreement

BID AGREEMENT
Articles of agreement executed on this………………………………………the … … … … … …
… … … … …………day of ………………………………………. Two thousand and ……………………
Between the Kerala State Electricity Board Ltd. represented by (here enter the designation of
the officer who has invited this tender ………………………………………………. (here in after
referred to as “The KSEB Ltd)” of the one part-and Sri………………………
……………………………………………. here enter name and address of the tenderer) hereinafter
referred to as “The bounden” of the other part
WHEREAS in response to the invitation for tenders contained in Notification
No………………………………… date ……………………….. inviting tenders the bounden has
submitted to the KSEB Ltd a tender for the ………………………… specified therein subject to the
terms and conditions contained in the said tender:
WHEREAS the bounden has also deposited with the KSEB Ltd a sum of Rs…… …… ……
…… as earnest money for execution of an agreement undertaking the due fulfillment of the
contract in case his tender is accepted by the KSEB Limited
Now THESE PRESENTS WITNESS and it is hereby mutually agreed as follows
1. In case the tender submitted by the bounden is accepted by the KSEB Limited and the
contract for ………………………………………………………………………….
…………………………………………is awarded to the bounden, the bounden shall within … … … …
… … …… … … … …… …… …… …… …… …………….days of acceptance of this tender execute an
agreement with the KSEB Limited incorporating all the terms and conditions under which the
KSEB Limited accepts his tender.
2. In case the bounden fails to execute the agreement as aforesaid incorporating the
terms and conditions governing the contract the KSEB Limited shall have power and authority to
recover from the bounden any loss or damages caused to the KSEB Limited by such breach as
may be determined by the KSEB Limited, appropriating the earnest money deposited by the
bounden and if the earnest money is found to be inadequate, the deficit amount may be
recovered from the bounden and his properties movable and immovable also in the manner
here in after contained.
3. All sums found due to the KSEB Limited under or by virtue of this agreement shall be
recoverable from the bounden and his properties, movable and immovable under the provisions
of the Revenue Recovery Act for the time being in force as though such sums are arrears of land
revenue and also in such other manner as the KSEB Limited may deem fit.
In witness where Sri…………………………………………………………..(here enter name and
designation) for and on behalf of the KSEB Limited and Sri……………………… ……… … … … … …
… … … … … …………………… the bounden have hereunto set their hands the day and year
shown against their respective signatures.
Signed by Sri…………………………………………………………………………(date)
In the presence of witness.
1.
2.
Signed by Shri…………………………………………………………………………(date)
In the presence of witness
1.
2.

Annexure-K Register for Tender/Quotations

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 FORM OF REGISTER FOR RECEIPT AND OPENING OF TENDER/QUOTATION
(To be modified as applicable)
Tender/Quotation Number …………………………
Name of Item……………..
Tender Fee ………………
PAC…………EMD ….. , Due Date ………….. Date of opening ……………..

Sl. Name of Date and Method of Initials of Rate Whether Name and Initials of Head
No Bidder time of receipt(whether Head of quoted by lowest/2nd signature of Office /
Receipt by post/by Office / the bidder lowest/highest bidders or their Designated Officer
hand/courier) Designated etc representatives
Officer

1. Signature of Witnessing Officer

2. Signature of Designated Officer with remarks

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 Annexure-L Register for E-Tender

FORM OF REGISTER FOR E-TENDER

Two Part Tender/ Limited Tender
(To be modified as applicable)
Tender No …………………………
Name of Item……………..
Date of PQ bid / Price bid opening ……………..

Sl. Name of Date and time of Method of Initials of Name and signature Initials of Head
No Bidder Receipt of Cover Receipt (whether Designated Officer of bidders or their Office / Tender
containing by post/by representatives opening Authority
originals of Bid hand/courier)
Agreement, Bid
Form, Power of
Attorney etc..

1. Signature of the Witnessing Officer

2. Signature of Designated Officer with remarks

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 Annexure-M Format of BG for Security Deposit (SD)

FORMAT-SECURITY DEPOSIT

(To be used by Scheduled Bank)

In consideration of the Kerala State Electricity Board Limited (hereinafter called “the KSEB
Limited”) having agreed to exempt ………………………………………………………………………
hereinafter called “the said Supplier (s) from the demand. (Under the terms and conditions of
an Agreement dated to be executed as per order No..............................dated...................... for
the supply of..........................................................made between …………………………… ……
……… ……………………and…………………………………………………………….
…………………………………for………… …………… hereinafter called “the said Agreement) of
security deposit for the due fulfilment by the said Supplier’s) of the terms and conditions
contained in the said Agreement on production of a Bank guarantee of Rs.
………………………………(Rs) …………………………………………. (only
We……………………………………………………………………………Bank Ltd (hereinafter referred to as
the Bank’) do hereby undertake to pay to the KSEB Ltd an amount not exceeding
Rs……………………………………………………(Rs)…………………………………………… only) against
any loss or damage caused to or suffered by or would be caused to or suffered by the KSEB Ltd
by reason of any breach by the said Contract (s) of any of the terms and conditions contained in
the said Agreement.
 We…………………………………………………Bank Ltd. Do hereby undertake to pay the
amounts due and payable under the guarantee without any demur merely on a demand
from the KSEB Ltd, stating that the amount claimed is due by way of loss or damage
caused to or would be caused to or suffered by the KSEB Ltd, by reason of any breach by
the said Supplier(s) of any of the terms and conditions contained in the said Agreement
or by reason of the Supplier’s (s) failure to perform the said Agreement. Any such
demand made on the Bank shall be conclusive, as regards the amount due and payable
by the Bank under the guarantee. However, our liability under this guarantee shall be,
restricted to an amount not exceeding Rs………………..
 We…………………………………………………..Bank Ltd. Further agree, that the guarantee
herein contained, shall remain in full force an effect, during the period that would be
taken for the performance of the Agreement ad that it shall continue to be enforceable
till all the dues of the KSEB Limited under or by virtue of the said Agreement, have been
fully paid and its claims satisfied or discharged till the Chief Engineer (SCM) of KSEB
Limited or other Engineer of the KSEB Limited in change of the Work, certifies that the
terms and conditions of the said agreement have been fully and properly carried out by
the said Supplier(s) and accordingly discharges the guarantee, Unless a demand or claim
under this guarantee is made on us in writing on or before the
…………………………………………………… …we shall be discharged from all liability under
the guarantee thereafter.
 We……………………………………………………………………… Bank Ltd. Further agree with
the KSEB Ltd that the KSEB Ltd shall have the fullest liberty, without our consent and
without affecting in any manner or obligations hereunder to vary any of the terms and
conditions of the said Agreement or to extend time of performance by the said Supplier
(s) from time to time or postpone for any time or from time to time any of the powers
exercisable by the KSEB Ltd against the said Supplier(s) and to forbear or enforce any of
the terms and conditions relating to the said agreement and we shall not be relieved
from our liability by reason of any such variation, or extension or forbearance being
granted or allowed to the said Supplier (s) or for any of the forbearance act or omission

Page 79
 on the part of the KSEB Limited or any indulgence by the KSEB Ltd to the said Supplier(s)
or by any such matter or thing whatsoever which under law relating to sureties would
but for this provision have the effect of so relieving us.
 To give effect to the guarantee it shall be competent for the KSEB Ltd to so act, as
though the Bank were the principal debtor.
 It is hereby expressly agreed and declared that this guarantee and the powers and
provisions herein contained are in addition to and not by way of limitation of or
substitution for any former or other guarantees or guarantee-here to-force-given by the
Bank to the KSEB Limited and now existing uncancelled and this guarantee is not intend
to and shall not revoke or limit such other guarantees.
 We ……………………………………………………………………….. Bank Limited lastly
undertakes not to revokes this guarantee during its currency-except with the previous
consent of the KSEB Limited in writing.

Dated the…………………………. Day of……………………………………

For……… …………………………………………………Bank Limited,
………………………………………………………………

Telephone No. of Bank:

Fax No:

Email ID:

Page 80
 Annexure-N Format for Performance Bank Guarantee
(PBG)

PERFORMANCE BANK GUARANTEE

BG No. Date:

This guarantee is made on this ............... day of ...................................... 20.....

by ............................................... (complete postal address of the bank) hereinafter
called 'the Bank', which expression shall unless repugnant to the context or meaning
thereof shall include its successors and assigns.

WHEREAS the Kerala State Electricity Board Limited, a Company incorporated by

the Government of Kerala under the Companies Act, 1956 having its registered office at
Vydyuthi Bhavanam, Pattom, Thiruvananthapuram, Kerala, PIN – 695 004, hereinafter
called as 'the Purchaser', which expression shall unless repugnant to the context or
meaning thereof shall include its successors and assigns in having agreed to
exempt .............................................................................(hereinafter called
“Supplier/Supplier(s)” which expression unless repugnant to the context and
meaning thereof shall include its successors and assigns) from depositing with the
Purchaser a sum of Rs. .................... towards Performance Security Deposit in lieu of
the said Supplier/Supplier(s) having agreed to furnish a bank guarantee for the said
sum of Rs. ......................... as required under the terms and conditions of Purchase
Order No. ................................................. dated ............................... (hereinafter
referred as the 'order') placed by the Purchaser on the said Supplier/Supplier(s)
and on specific request on the part of the said Supplier/Supplier (s),we the Bank
hereby unconditionally and irrevocably affirm and undertake-

(a) At the request of the Supplier/Supplier(s), we 'the Bank', do hereby

unconditionally and irrevocably affirm and undertake that we are the Guarantor
and are responsible to the Purchaser up to a total sum of `................
[Rupees ..................................................................... only] such sum being
payable by us to the Purchaser immediately upon receipt of first written
demand from the said Purchaser.

(b) We unconditionally and irrevocably undertake to pay to the Purchaser on an

immediate basis, upon receipt of first written demand from the said Purchaser
and without any cavil or argument or delaying tactics or reference by us to the
Supplier/Supplier(s) and without any need for the Purchaser to convey to us
any reasons for invocation of the guarantee or to prove the failure to perform on
the part of the Supplier/Supplier(s) or to show grounds or reasons for the
demand or the sum specified therein, the entire sum or sums within the limits of
`........................... [Rupees ................... ......................... only].

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(c) We hereby waive the necessity of the Purchaser demanding the said amount
from the Supplier/Supplier(s) prior to serving the demand notice upon us.

(d) We further agree and affirm that no change or addition to or other modification
to the terms of the agreement, shall in any way release us from any liability
under this unconditional and irrevocable guarantee and we hereby waive notice
of any such change, addition or modification. We further agree with the
Purchaser that the Purchaser shall be the sole and exclusive judge to
determine that whether or not any sum or sums are due and payable to him by
the Supplier/Supplier(s), which are recoverable by the Purchaser by
invocation of this guarantee.

(e) This guarantee will not be discharged due to the change in constitution of the
Bank or the Purchaser. We undertake not to withdraw or revoke this guarantee
during its currency/validity period, except with the previous written consent of
the Purchaser.

(f) We unconditionally and irrevocably undertake to pay to the Purchaser, any

amount so demanded not exceeding `...................................
[Rupees ...................... only] notwithstanding any dispute or disputes raised by
the Employer or anyone else in any suit or proceedings before any dispute
review expert, arbitrator, court, tribunal or other authority, our liability under this
guarantee being absolute, unconditional and unequivocal. The payment so
made by us under this guarantee to the Purchaser, shall be a valid discharge of
our liability for payment under this guarantee and the Supplier/Supplier(s)
shall have no claim against us for making such payment.

(g) This unconditional and irrevocable guarantee shall remain in full force and effect
and shall remain valid until ...............................and shall be extended from time
to time for such period as may be desired by the Supplier/Supplier(s) on
whose behalf this guarantee has been given.

Notwithstanding anything contained herein:

1. Our liability under this Bank Guarantee shall not exceed .............................
(value in figures) .................................... [value in
words ...................................................].

2. This unconditional and irrevocable Bank Guarantee shall be valid with effect
from...................... to ......................................

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3. We are liable to pay the guaranteed amount or any part thereof under this
unconditional and irrevocable Bank Guarantee only and only if the Purchaser serves
upon us a written claim or demand on or before ........................... [validity date].

For and on behalf of the Bank

[Signature of authorized signatory(ies)]
Signature:
Name :
Designation:
POA Number:
Contact Nos. : Tel.......................................... Mobile.......................................................
Fax No.
Email
Common seal of the Bank:
Witness:
1. 2.

Signature:
Name:
Address:
Contact No. Tel. Mobile
email:

Note:
1. For the purpose of executing the Bank Guarantee, the non-judicial stamp papers
of appropriate value shall be purchased in the name of Bank which issues the Bank
Guarantee.
2. The Bank Guarantee shall be signed on all the pages by the Bank authority
indicating their POA Nos. and should invariably be witnessed.

Page 83
 Annexure-O Format for Contract Agreement

APPENDIX-I
FORM OF AGREEMENT
Articles of Agreement made the …………………………………………………… … … … …
……….day of………………………………………………Between Sri… …… …… …… …… …… …… ……
(Purchase Authority), Kerala State Electricity Board Limited, Thiruvananthapuram acting for/on
behalf of the Kerala State Electricity Board Ltd herein after called the “KSEB Ltd”, a company
incorporated under the Companies Act, 1956 having its registered office at Vydyuthi
Bhavnanam, Pattam, Thiruvananthapuram, PIN-695 004,of the one part and
Sri………………………………………………………… … ………………… ………………… ………… …… ……
… ……………………………………………… ………… …………… …………… …………… of…… ………
……… ………………………………
……………………………………….and…………………………………………Company Limited
incorporated under the …………………………………………….. … … … … … … … … … …
…………………………………….and having its registered Office at
……………………………………………………………….. (herein after called the Supplier) of the other
part.

WHEREAS the Supplier has tendered for the supply of articles for the use of KSEB Ltd as
per Tender Notification No. ELE……………………………………………… …
………..Dated……………………………….

And WHEREAS the KSEB Limited have been pleased to accept the contract in respect of
the articles mentioned in the copy of order attached.

And WHEREAS the Supplier has security for the satisfactory fulfillment of this contract
deposited Rs………………. …………………………….. i.e., a sum equal
to……………………………………………………………. percent of the value of the contract as per
Bank Draft No……………………………………dated ……… ……… ………… Bank Guarantee
No…………………………………………………………………………………. Dated…………………………of
the …………………………………………………………………Bank duly approved by the KSEB Limited

Now these presents witness and it is hereby mutually agreed as follows:-

1) The Supplier shall undertake to supply Goods according to the standard samples
and specifications. In other cases he should send samples to conform to the description given
in the schedule when required to do so approved samples will not be paid for and shall become
the property of the KSEB Ltd, but may at the discretion of the KSEB Ltd be returned to the
Supplier whose tender is accepted on the completion of his contract. All samples must be
clearly labeled to show to what particular items tendered for they relate and should be of
sufficient size and quantity to enable the KSEB Ltd to compare supplies therewith.

2) No representation for enhancement of rates once accepted will be considered.

3) The approximate quantities to be supplied are shown in the copy of order

No……………………………………………………………………………………………… here with attached
which shall be treated as part of this agreement as nearly as can be foreseen. But they are
merely estimates of quantities that may be required for general guidance of tenders, and the
KSEB Ltd in no case binds itself to purchase any quantity at all during the period of contract if
no necessity arises therefore but the Supplier shall. Supply any quantity of any article at the
rate tendered by him, for that article up to 25 percent, in excess of the estimated quantity
quoted and in the event of his inability to do so or to offer a suitable alternative to the

Page 84
satisfaction of the KSEB Ltd, the KSEB Limited is at liberty to purchase the articles an article of
similar quality from elsewhere and should the price of the articles so purchased be in excess of
the tendered rate to deduct the difference of cost from the Suplier’s bills or his security deposit,
as the case may be The Supplier shall not however be entitled to the excess, if any, of the
tendered rate over such purchase amount.

4) In case the Supplier fails to supply and deliver any of the articles and things
tendered for by his within the time provided for delivery of the same or in case the Supplier
commits any breach of any of the covenants, stipulations and agreements here in contained and
on his part to be observed and performed, then and in any such case, it shall be lawful for the
KSEB Ltd (if it shall think fit to do so) by an order in writing to put an end to this contract, and in
case the KSEB Ltd shall have incurred, sustained or been put to any costs damage or expenses
by reason of this contract having been so put an end to or in case any difference in price,
compensation loss, costs, damages, expenses or other money shall then or at any time during
the continuance of this contract be payable by the Supplier to the KSEB Limited under and by
virtue of this contract it shall be lawful for the KSEB Ltd from and out of any moneys for the time
being payable or owing to the Supplier from the KSEB Ltd under or by virtue of this contract or
otherwise to pay and reimburse to the KSEB Ltd all such costs, damages and expenses they
may have sustained, incurred or been put to by reason of this contract having been so put an
end to as aforesaid, and also all such difference in price, compensation loss, costs, damages,
expenses and other moneys as shall for the time being be payable by the Supplier aforesaid.

5) Every notice hereby required or authorised to be given may be either given to the
Supplier personally or left at his residence or last known place of abode or business or may be
handed over to his agent personally or may be addressed to the Supplier by Post at this usual or
last known place of abode or business and if so addressed and posted shall be deemed to have
been served to Supplier on the date on which in the ordinary course of Post a letter is
addressed and posted would reach his place of abode or business.

6) All payments to the Supplier will be made by the Purchasing Officer by Online payment
through NEFT/ SBI Internet Banking /RTGS only.

7) The Supplier shall not assign or make over the contract or the benefits or burdens
there of or any part there of to any other person or person or body corporate. The Supplier shall
not underlet or sublet to any person or body corporate the execution of the contract or any part
thereof without the consent in writing, of the KSEB Limited The KSEB Ltd shall have absolute
power to refuse such consent or rescind such consent (if given) at any time, if they are not
satisfied with the manner in which the contract is being executed and no allowance or
compensation shall be made to the Supplierr or the subSupplier upon such rescission. Provided
always that if such consent be given at any time, the Supplier shall not be relieved from any
obligation, duty or responsibility under this contract.

8) In case the Supplier becomes insolvent or goes into liquidation or makes or

propose to make any assignment for the benefit of his creditors or propose any composition
with his creditors for the settlement of his debts or carries on his business or the contract under
inspection on behalf of his creditors, or in case any receiving order or orders for the
administration of his estate are made against him, or in case the Supplier shall commit any act
of insolvency, or in case in which under any clause or clauses of this contract, the Supplier shall
have rendered himself liable to damages amounting to the whole of his Security Deposits, the
contract shall thereupon, after notice given by the Purchasing Authority, KSEB Limited to the
Supplier, be determined and the Chief Engineer, may complete the contract in such time and
manner and by such person as the KSEB Ltd shall think fit. But such determination of the
Supplier shall be without any prejudice to any right or remedy of the KSEB Ltd against the
Supplier or his sureties in respect of any breach of contract Committed by the Supplier.

Page 85
 9) All expenses and damages caused to the KSEB Limited by any breach of all or any
of the terms of this contract by the Supplier shall be paid by the Supplier to the KSEB Ltd and
may be recovered from him.

9) (a)The final payment will be made only on production of an undertaking by the

Supplier/ Supplier that all taxes and duties payable to the Central/ State Government
Departments/ Agencies due to this supply/ contract have been paid by him and if any claim is
received in future from any Central/ State Government Departments/ Agencies under existing
laws regarding this supply/ contract, the Supplier/ Supplier shall be liable to pay the same.
10) The Security Deposit shall, subject to the conditions specified herein be returned to the
SUpplier within three months after the expiration of the contract, but in the event of any dispute
arising between the KSEB Ltd and the Supplier, the KSEB Ltd shall be entitles to deduct out of
the deposits or the balance thereof, until such dispute is determined the amount of such
damages, costs, charges and expenses as may be claimed the same may also be deducted from
any other sum which may be due at any time from the KSEB Limited to the Supplier.
11) The Supplier/here by declares that the Goods sold to buyer under this contract shall be of
the best quality (and workmanship) and shall be strictly in accordance with the specifications
and particulars contained/mentioned in the copy of the order mentioned in clause 3 here of and
the Supplier/here by guarantees that the said Goods/stores/articles would continue to conform
to the description and quality aforesaid for a period of ………………………………. Days/months
from the date of delivery of the said Goods to the KSEB Limited and that notwithstanding the
fact that the KSEB Ltd (Inspector) may have inspected and/or approved the said Goods, if during
the aforesaid period of ……………………….days/months the said Goods/stores/articles be
discovered not to conform to the description and quality aforesaid or have deteriorated and the
decision of the Board in that behalf will be final and conclusive the KSEB Limited will be entitled
to reject the said Goods articles or such portion thereof as may be discovered not to conform to
the said description and quality. On such rejection of Goods will be at the Supplier’s risk and all
the provisions herein contained relating to rejection of Goods etc, shall apply, The Supplier shall
if so called upon to do replace the Goods etc, or such portion thereof as is rejected by the KSEB
Limited Otherwise the Supplier shall pay to the KSEB Ltd such damages as may arise by reason
of the break of the conditions herein contained. Nothing herein contained shall prejudice any
other right of the KSEB Ltd in that behalf under this contract or otherwise.
12) The terms & conditions given in this agreement and/or the Order referred to in
Clause 3 above, shall supersede all the terms and conditions contained in the tender/ quotation
submitted by the Supplier or in the covering letter forwarding the said tender/quotation. Where
the Supplier’s terms and conditions are at variance with this agreement and/or the order for the
supply, the latter shall prevail.
13) In case where a successful bidder after having made partial supplies fails to fulfill the
contracts in full, all or any of the Goods not supplied may, at the discretion of the purchasing
officer be purchased by means of another tender/Quotation or by negotiation from the next
higher bidder who had offered to supply already and the loss, if any, caused to the KSEB
Limited shall thereby together with such sums as may be fixed by the KSEB Ltd towards
damages the recovered from the defaulting, bidder.
14) Even in cases where no alternate purchase are arranged for the Goods not
supplied the proportionate portion of the Security Deposit based on the cost of the Goods not
supplied at the rate shown in the tender of the defaulter shall be forfeited and balance alone
shall be refunded.
15) Any disputes arising out of this contract will be subject to the exclusive
jurisdiction of Civil Courts at Thruvananthapuram.
In witness where of the parties hereto have hereunto set their hands the day and year
first above written.

Page 86
Signed and sealed delivered by......................................................................................
………………………………………………………………………………………………………………………………
……………........Chief Engineer(SCM), acting for and on behalf of the Kerala State Electricity
Board Ltd..
In the presence of :

Witness 1.
2.

Signed sealed and delivered

by ……………………………………
In the presence of:- Supplier
Witness:- 1

Witness:- 2

Page 87
 Annexure-P FORM OF SUPPLEMENTAL AGREEMENT

SUPPLEMENTAL AGREEMENT executed the ……………………………………day of

……………………………between ………………………………… (here after called the “Supplier”) of
the one part and the (The Purchasing Officer) (hereafter called the Kerala State Electricity
Board) of the other part.

WHEREAS the Supplier has offered as per the letter No………………………………………

dated…………………………….. to supply additional quantity of Goods mentioned in the order
No……………………………………… dated…………………………… at the same rates, terms and con-
ditions of the existing agreement executed between the aforesaid parties on the
……………………. (hereafter called the principal agreement)

AND WHEREAS the Kerala State Electricity Board have in their order
dated………………………………… have ordered to supply additional quantity.

NOW THESE PRESENTS WITNESS AND IT IS HEREBY MUTUALLY AGREED between the Ker-
ala State Electricity Board Ltd and the Supplier to supply the additional quantity on same terms
and conditions enumerated in the principal agreement.

Save as varied as aforesaid all the terms and conditions of the principal agreement shall
remain in full force and effect.

IN WITNESS WHEREOF Shri………………………………………………………….(here enter the

name and designation) for and on behalf of the Purchasing Officer have hereunto set their
hands.

Signed, sealed and delivered by……………………………………………………………………………. (here

enter the designation) for and on behalf of the Purchasing Officer.
In the presence of witness.

1.

2.
Signed, sealed and delivered by Shri……………………………………………………………… for
and on behalf of the Supplier and also in such other manner as the KSEBL may deem fit.

In the presence of witness

1.

2.

Page 88
 Annexure-Q FORM OF BANK GUARANTEE (for Advance Payment)

Where as the Kerala State Electricity Board Ltd., Thiruvananthapuram (hereinafter called
the purchaser) has placed an order with Messer’s …………………………………………………………
(hereinafter, called the Supplier) in the terms of P.O No ……………………
……………………………………………….. and the Supplier’s acceptance
No……………………………………….. for the supply of ………………………………… ……
………………………………………… and whereas one of the conditions of the agreement made
………………………………………………(date) was that the KSEB Limited should make advance
payment of ………………………% of the contract cost including taxes of the Goods despatched
against Bank Guarantee from a Schedule Bank together with the despatch documents for a sum
equal to the amount of payment.

In consideration of the KSEB Ltd having agreed to pay to the Supplier such advance
payment as aforesaid in accordance with the terms & conditions of the agreement, the
……………………… (Bank) hereby undertake that it will in the event of the Supplier, failing, to
deliver the Goods in accordance with the conditions of the agreement pay to the KSEB Ltd on
demand—any sum or sums which may from time to time be demanded by the KSEB Ltd after
the date there of upto a maximum of Rs……………………… (……………in words) being the
amount of …………………….. % advance payment, which at the date of the demand by the KSEB
Ltd has been paid as aforesaid and which has not under the terms of this or any other
undertaking been reimbursed.

This undertaking is not revocable by notice but will continue with full force until (a)
payment has been made to the KSEB Limited by the Bank of aggregate amount payable here
under or (b) delivery of all items of the Supplier’s acceptance of order No…………………to the
KSEB Ltd in accordance with the conditions of the agreement, which ever shall first occur.

Not withstanding any of the foregoing provisions contained in this contract, it is

understood that the guarantee shall not continue to be in force beyond ………………… months
from the date of execution hereof.

In witness thereof we have here-unto set our hand and seal this ……… ……… ………
………………Day of ………………………………. Two thousand and ………………

Date:

Place:

Witness

1.

2.

Page 89
 Annexure-R LETTER OF ACCEPTANCE

From
The Purchasing Officer

To

Dear Sirs,

Sub:- Supply of ………. ………under …………… Scheme of KSEB Limited – reg.

Ref:-

You are hereby informed that KSEB Ltd is pleased to accept your offer for supply of
……..You are requested to supply …. Nos of…………… at an All Inclusive unit Rate of Rs……
(Basic Price – Rs......., freight – Rs......., insurance – Rs......, GST @ ...% - Rs...........-).

You may proceed with your preliminary works for production of……... The detailed
Purchase Order follows.

Yours faithfully,

PURCHASING OFFICER

Page 90
 Annexure-S INSPECTION SUMMARY

ANNEXURE-S

INSPECTION SUMMARY

Proto inspection Mass inspection Stage inspection Final inspection

Lot No. Full quantity

1 Purchase Order No.

2 Date of inspection

3 Name of manufacturer

4 Name of Goods

5 Total quantity offered (Serial No.)

6 Random selection of quantity (Serial No.)

7 Tests Witnessed

8 Any test failed during inspection? If yes, what

remedial measures taken?

Page 91
 Whether test results confirm relevant stan-
9 dards/approved drawing/ technical specifica-
tions?

10 Discrepancies/ remarks/comments regarding

tests

11 Whether test results found satisfactory and ac-

ceptable?

12 Whether any deviation noted in the make/type/

design from GTP/approved drawing/ technical
specification?

13 Whether the firm agreed to rectify the defects

before despatch?

14 Recommendation of the inspecting officer-

whether the Goods can be accepted and
cleared for despatch?

15 Name, designation and signature of the in-

specting officer with date

Page 92