Government of Karnataka

Department of Agriculture
No: FM&MI/CHSC/EOI/2015-16 Commissionerate of Agriclulture
Sheshadri Road, Bangalore- 1
Date: 16-12-2015
Short Term Invitation for Expression of Interest
Sub : Applications for Short Term Expression of Interest for the purpose of establishment of
Custom Hire Service Centers through registered Charitable Trusts (Registered under Section 25 of
Companies Act, 1956) /Organisations/Non Government Organisations (NGO)/Registered Farmers
Producers Organisations (FPOs)/Farm machineries Manufacturers .
The Department of Agriculture proposes to establish one Custom Hire Service Center at
Hobli level in the State during the year 2015-16. The details of scope of the programme and terms of
reference are annexed. The short listed registered Charitable Trusts (Registered under Section 25 of
Companies Act, 1956) /Organisations/Non Government Organisations (NGO)/Registered Farmers
Producers Organisations (FPOs)/ Farm machineries Manufacturers hereinafter called as Applicant
should submit the duly filled in application form as per the format annexed.

The Applicant who is interested in participating in the expression of interest regarding the
programme is requested to submit the following information:

1. Profile of the Applicant.

2. Annual report, Balance Sheet for the past three years (2012-13, 2013-14 and 2014-15).
3. Brief write up of about 100 words, including monetary value with details of relevant
assignments completed in the past three years.
4. Complete details of staff with the Applicant along with their resume.
The interested Applicant may download information on e-procurement website
https://eproc.karnataka.gov.in. And they have to collect digital keys and pass words from e-
Governence. For further information contact, Deputy Director of Agriculture (FM&MI), Directorate
of Agriculture, Sheshadri Road, Bangalore- 1.

Note: The Applicant should submit a security deposit of Rs. 1.00 lakh per center.
 ANNEXURE- I
Background
Karnataka State is typically an agrarian State with 190.5 lakh ha of geographical area
with 99.23 lakh ha of net sown area (Year 2013-14) and has about 78.32 lakh ha operational
holdings (Agri Census 2010-11) of which 76% are small and marginal holdings.
Diversified agriculture and horticulture crops grown in varied Agro-climatic regions of
the state. The challenge is to get higher yields, in spite of vagaries of nature besides other
problems such as decrease in the availability of agriculture labourers, migration of farmers from
rural area to cities etc. Mechanisation of farm activities is the need of hour to increase
production and productivity. Though subsidy is being provided for farm machinery, due to
prohibitive cost of farm machinery all farmers may not come forward to own them. Hence,
establishment of Custom Hire and Service Centre (CHSC) is a boon for farmers especially for
the small and marginal farmers.
Establishment of 175 Farm Machinery Custom Hire and Service Centres (CHSC) is
under progress for the year 2014-15 with an allocation of Rs. 70.00 crore.
The Applicant is selected at District level and they have to establish custom hire service
centers at Hobli level in the selected District. One Applicant can apply for more than one
District. To participate in the process minimum selection unit is District.
Government assistance for each centre:
Slab 1: The Department of Agriculture proposes to establish 180 CHSCs (Upto Rs.50.00 lakhs
per center) during the year 2015-16. During the first year, back ended Government assistance is
upto Rs. 37.50 lakhs (75%) and the approved Applicant has to contribute minimum of Rs. 12.50
lakhs (25 %). During the second year the Government will contribute upto Rs.12.50 lakhs and
approved agency has to contribute minimum of Rs.12.50 lakhs per center.
Slab 2: In the places like Malnad region (Dakshina Kannada, Udupi, Uttara Kannada, Kodagu,
Shimoga and Chikmagalur-6 Districts) and areas where monocropping system is common (Kolar
and Chikballapur- 2 Districts), Department of Agricultur proposes to establish 74 CHSCs
wherein, maximum of Rs. 50.00 lakh worth implements may not be required. In such places,
maximum upto Rs.40.00 lakhs worth implements can be shelfed per center during the year
2015-16. During the first year, back ended Government assistance is upto Rs. 30.00 lakhs (75%)
and the approved Applicant has to contribute minimum of Rs. 10.00 lakhs (25 %). During the
second year the Government has to contribute upto Rs.5.00 lakhs and approved agency has to
contribute minimum of Rs.5.00 lakhs per center.
 ANNEXURE-II
Selection Criteria for Charitable Trusts, Companies (Registered under Section 25 of
Companies Act, 1956) /Organisations/Non Government Organisations (NGO)/Registered
Farmers Producers Organisations (FPOs) / Farm machineries Manufacturer (Applicant)
Agriculture scenario has witnessed a great change since last decade. With the enormous
development of urban areas and migration of rural labour class to the urban areas for employment
has resulted in scarcity of labour for agricultural operations. In this context, mechanisation in
agriculture is an only alternative to solve the labour problem being faced by our farming community
today. Mechanisation not only helps in solving the problem of labour, but also enables to carry out
agricultural activities in right time. The major constraint in mechanisation is that small and marginal
farmers cannot afford to purchase costly mechinery and equipments. Custom Hire Service Centers
(CHSCs) enable to overcome these constraints as they provide services of mechinery on hire basis to
small and marginal farmers in right time. With this background it is proposed to select reputed
functional Charitable Trusts, Companies (Registered under Section 25 of Companies Act,
1956)/Organisations/Non Government Organisations (NGO)/Registered Farmers Producers
Organisations (FPOs)/ Farm machineries Manufacturer.

The criteria for selection of Applicants,

1. Applicant should be registered.

2. A minimum of 25 workers should be working and should be actively functioning for the past
three years.
3. Applicant should have experience in execution of Government programmes (attach necessary
documents).
4. On selection, Applicant should function efficiently as per the agreement.
5. Applicant should have minimum 5 persons who have knowledge about Agriculture / Agri-
Business/ Farm machinery.
6. The area of operation of Applicant should be well defined.
7. Applicant should have minimum of Rs.1.00 crore Networth and they should submit last three
years Annual Audit Report.
8. Any member of the Applicant should not be elected/ nominated person of any political party.
9. The selected Applicant will mandatorily have minimum of 5 members to run one CHSC
including technical staff, mechanic and driver. Technical staff in the CHSC should be trained
and guide the staff and farmer.
10. Criminal case registered in police station/ pending in any court or Applicant is not eligible to
participate.
11. Applicant should not have been blacklisted in any State and they should submit an affidavit
to that aspect.
 12. The work assigned under this Expression of Interest cannot be sub-let. However on selection
of the successful Applicant can form a SPV (Special Purpose vehicle) company (registered
under section 25 of Companies Act, 1956) at their discretion to carry out the performance of
the contract.
13. The Applicant should function in co-ordination with the Department of agriculture.
14. The functioning of the Applicant throughout the cropping season is mandatory.
15. Applicant should make provision for Insuring all the farm machinery provided against
natural disaster/robbery (2% of the total amount of the implements provided by the
department should be paid as insurance by the Applicant
16. E.M.D. at the rate of Rs. 1.00 lakh per CHSC in the form of Bank guarantee in the name of
Director of Agriculture should be submitted for a period of five years. After the selection of
Applicant, disqualified Applicant E.M.D. will be refunded immediately. The EMD of the
successful Applicant shall be retained by the Department as security deposit and will be
refunded after the validity period of the EOI after obtaining Successful work Certificate
from all the District Joint Directors of Agriculture or shall be forfeited in the event of
violation of terms and conditions of Expression of Interest.

CONDITIONS:
1) For the purpose of selection of Applicant each District will be treated as an Unit and they
need to apply for all centers proposed in the District.
2) The selected Applicant should enter into an agreement with the Department. This agreement
is valid for a period of six years from the date of signing the agreement and should
compulsorily run for six years. The agreement may be extended further on mutually agreed
terms subject to the satisfactory performance of the CHSC. However the ownership of the
equipments/machines/implements shelfed under this programme in the CHSC rests with
Department of Agriculture.
3) All the financial transactions of the CHSC/ Applicant, should submit the Annual Utilisation
Certificate.
4) Preference should be given to Small and Marginal farmers during hiring out.
5) The area of the operation of the Applicant should be at District level.
6) For Slab 1 farm implements upto worth Rs. 50.00 lakh and for Slab 2 farm implements upto
worth Rs. 40.00lakh will be shelfed in one CHSC based on the local needs.
7) Running Expenditure like salary of the personnel incharge of CHSC, rent, fuel charges,
repairs and maintainance charges etc. shall be borne by the Applicant.
8) The Applicant has to maintain separate bank account for the CHSC purpose.
9) Profit generated by the Custom Hiring Centers has to be reinvested for strengthening of
Center so as to attain sustainability.
10) In case performance is same for all parameters, then preference will be given for local
Applicant for establishment of CHSC.
11) If more than one local Applicant found to be eligible then the Applicant ready to invest
higher amount for establishment of CHSC will be considered.
12) Government assistance for each centre:
13) Slab 1: The Department of Agriculture proposes to establish 180 CHSCs (Upto Rs.50.00
lakhs per center) during the year 2015-16. During the first year, back ended Government
assistance is upto Rs. 37.50 lakhs (75%) and the approved Applicant has to contribute
minimum of Rs. 12.50 lakhs (25 %). During the second year the Government will
contribute upto Rs.12.50 lakhs and approved Applicant has to contribute minimum of
Rs.12.50 lakhs per center.
Slab 2: In the places like Malnad region (Dakshina Kannada, Udupi, Uttara Kannada,
Kodagu, Shimoga and Chikmagalur-6 Districts) and areas where monocropping system is
common (Kolar and Chikballapur- 2 Districts), Department of Agricultur proposes to
establish 74 CHSCs wherein, maximum of Rs. 50.00 lakh worth implements may not be
required. In such places, maximum upto Rs.40.00 lakhs worth implements can be shelfed
per center during the year 2015-16. During the first year, back ended Government
assistance is upto Rs. 30.00 lakhs (75%) and the approved Applicant has to contribute
minimum of Rs. 10.00 lakhs (25 %). During the second year the Government has to
contribute upto Rs.5.00 lakhs and approved Applicant has to contribute minimum of
Rs.5.00 lakhs per center.
14) In the subsequent phase preference will be given to the successfully performing Applicant for
establishing additional CHSCs subjected to the terms and conditions.
15) Any disputes arriving during the implementation of the project, it will be resolved and
settled at the level of Department of Agriculture only.
16) All selected Applicant should submit Audited statement every year.
17) All eligible Applicant will be provided an oppurtunity to present (duration -10 minutes) the
organisation strength and vision to establish CHSC in sustainable manner.
 18) If the selected Applicant unable to perform as per the terms and conditions of the Expression
of Interest, preference will be given to other selected Applicant who wish to come forward to
set up CHSC as per the terms and conditions of the Expression of Interest.
19) The Applicant should not be blacklisted / terminated / withdrawn / dropped out earlier for
any activity whatsoever.

Fixing of the Hiring Charges: The hiring and service charges for tractor and other equipments
shall be fixed by the Districts Implements Committee headed by Chief Executive Officer with
District Joint Director of Agriculture, President of District Krishik Samaj, leading farm machinery
manufacturer in the District, ADA (SMS) and 2 progressive farmer / Krishi Prashasthi Awaardee,
CHSC representative, University of Agricultural Sciences representative as members. The
committee shall take into account the fuel prices, interest payable to bank on loan and return on
investment, salary of drivers, repairs, both preventive and breakdown, distance from Service Centre
to fields, wears and tears, life of the machinery and other incidental expences including
establishment expenses while determining the hiring charges. Separate hiring charges should be
fixed for Small & Marginal Farmers as a category and other category farmers, wherein hiring
charges for Small and Marginal category farmers will be lower than the other category farmers.
Rates should be reasonable and realistic and should be in reference to market rates as obtaining from
time to time.
FINANCIAL ASSISTANCE

1) Slab 1: The Department of Agriculture proposes to establish 180 CHSCs (Upto Rs.50.00
lakhs per center) during the year 2015-16. During the first year, back ended Government
assistance is upto Rs. 37.50 lakhs (75%) and the approved Applicant has to contribute
minimum of Rs. 12.50 lakhs (25 %). During the second year the Government will
contribute upto Rs.12.50 lakhs and approved Applicant has to contribute minimum of
Rs.12.50 lakhs per center.
Slab 2: In the places like Malnad region (Dakshina Kannada, Udupi, Uttara Kannada,
Kodagu, Shimoga and Chikmagalur-6 Districts) and areas where monocropping system is
common (Kolar and Chikballapur- 2 Districts), Department of Agricultur proposes to
establish 74 CHSCs wherein, maximum of Rs. 50.00 lakh worth implements may not be
required. In such places, maximum upto Rs.40.00 lakhs worth implements can be shelfed
per center during the year 2015-16. During the first year, back ended Government
assistance is upto Rs. 30.00 lakhs (75%) and the approved Applicant has to contribute
minimum of Rs. 10.00 lakhs (25 %). During the second year the Government has to
 contribute upto Rs.5.0 lakhs and approved Applicant has to contribute minimum of
Rs.5.0 lakhs per center.
2) In the subsequent phase preference will be given to the successfully Applicant for
establishing additional CHSCs subjected to the terms and conditions.
3) Applicant shall bear 25% share of the project cost from their own resource or loan borrowed
from bank or both.
4) For Slab 1 the successful Applicant has to deposit their share of Rs.12.50 lakhs (25%) to the
Bank account and the Department will credit the remaining share of Rs.37.50 lakh (75%) into
Bank account which in turn will be transferred to the manufacturer/supplier’s account.
For Slab 2, the successful Applicant has to deposit their share of Rs.10.00 lakhs (25%) to the
Bank account and the Department will credit the remaining share of Rs.30.00 lakh (75%) into
Bank account which in turn will be transferred to the manufacturer/supplier’s account. Bank
will get these hypothecated to it as guarantee.
5) The successful Applicant will have to establish Hi-Tech Custom hiring centre within 3
months from the date of issue of work order. The departmental officers will monitor the
progress and after physical verification the subsidy will be released to the bank.
* Back Ended Subsidy: - The successful Applicant need to open Bank account and deposit
their share (Rs.12.50 lakhs/ Rs.10.00 lakhs for slab 1 and slab 2 respectively) in this account.
The Applicant has to finalise the list of farm equipments/implements based on the local needs
and has to place the order with the manufacturers/suppliers as per procedure prescribed by
the Department. Government share (upto Rs.37.50 lakh/ upto Rs.30.00 lakh for slab 1 and
slab 2 respectively) would be released to the Applicant account to be further transferred to
the equipment/implement suppliers account as soon as order is placed with different suppliers
and requisite verification is done by department officials.

PENALTIES FOR VIOLATIONS AND NON PERFORMANCE

If the Custom Hire Service Center do not run properly (failure or closing of the center), the
concerned Applicant should refund/ remit full Government share along with interest amount as per
prevailing bank rate. However force majeure will be considered. Penalties also includes forfeiting of
bank guarantee, black listing and legal action.
FINAL DECISION MAKING AUTHORITY:

The decision of the Tender Accepting Authority (Commissioner for Agriculture) shall be final in
considering or rejecting of any service.

The Department of Agriculture reserves the right to accept or reject the contract even after opening
of Technical Bid without assigning any reasons whatsoever.
 ANNEXURE-III

Objectives of the Custom Hire Service Centers (CHSCs)

Department of Agriculture provides subsidy for Farm Machinery like power tiller,
cultivator etc by under NFSM/ ISOPOM / R.K.V.Y. and other state sector schemes. Due to
prohibitive cost of farm machinery small and marginal farmers are unable to own them.
Thus, establishment of Custom Hire and Service Centres and Shelfing farm machinery
required for various farm activities right from land preparation to post harvest would enable
small and marginal farmers to mechanise farm activities by way of hiring the farm
machinery on nominal hire charges. The farm activity wise uses of different farm machinery
are as follows

Sl Farm Activity Uses

no
1 Implements for Land Preperation
2 Sowing /Planting Implements
3 Implements for Inter cultivation
4 Plant Protection equipments
5 Harvesting and Threshing
6 Post Harvesting and Agro
processing
Land preparation for uniform sowing
besides conserving water and soil.
Savings on input requirement beside
uniformity in depth of sowing.
Weed control
Management of pest and diseases
Better quality and quantity produce

The specific objectives are:

1. In order to address the constraints in land preparation and development, by providing

Farm machinery and equipments on Custom Hire Service basis.

2. To encourage in-situ moisture conservation and to harness the residual moisture of

Kharif season for Rabi Pulses and Oilseeds.

3. To enhance the production and productivity of the crops.

4. To provide services of High Tech Farm Machinery to small and marginal farmers.
 5. The Department of Agriculture proposes to establish 254 Custom Hire Service
Centres at hobli level in all the districts of the State is furnished in Annexure 4 (For
Slab-1) and 5(For Slab-2) for the year 2015-16.
List of Farm Machinery that are proposed to be shelfed in the Custom Hire Service Centres
are given below,

Sche. No. Item

A Land Development , Tillage and Seedbed preparation
Equipments
Tractor and Tractor accessories like hook, trailer, trolly,
1. bolts etc...
2. Power Tillers
3. M.B.Plough
4. Rotavator
5. Disc Plough
6. Disc Harrow
7. Cultivators
8. Sugarcane Stubble shaver cum cultivator
9. Leveler Blade
10. Cage Wheel
11. Blade Harrow
12. Laser Guided Land Leveller
B. Sowing and Planting Equipments
13. Paddy Planter
14. Furrow Opener/Ridger
15. Seed cum Fertiliser Drill
16. Roto Till Drill
17. Raised Tray Nursery Preparation Machine with Trays
18. Raised bed Planter/ Ridge Furrow Planter
C. Inter Cultivation Equipments
19. Grass/Weed Slasher
20. Rice Straw Chopper
D. 21. Tractor/Power tiller Mounted / Power operated Hi-tech
P.P. equipments
E. Harvesting & Threshing Equipments
22. Multi Crop Thresher
23. Groundnut Digger
24. Groundnut Pod Stripper/ Thresher
25. Harvester/ Reaper
 26. Combined Harvester
27. Baler
F. Equipments for Residue Management
28. Sugarcane Thrash Cutter
29. Coconut Frond Chopper
30. Chaff cutter
G. Post Harvest & Agro Processing Equipments

31. Dal Processor

32. Mini Rice Mill
33. Mini Oil Expeller
34. Ragi Polishing Machine
35. Ragi Cleaning Machine
36. Sugarcane Crusher Unit
37. Flour Mill
38. Pulverisers
39. Rava/Cattle Feed Machine
40. Chilly Pounding Machine
41. Shavige/Vermicelli Machine
42. Sugar Cane Juice Making Machine
43. Wheat Polisher
44 Diesel Pumpsets

Note: 1. The selection of Farm Machinery for the purpose of establishment of Custom Hire
Service Centres will be based on the local needs and suitability to soil condition.

2. The above mentioned list is only indicative and not exhaustive. Any additional
implements required other than the listed above, can be finalised in the Committee headed by
District Chief Executive Officer.
 APPLICATION FORM

From: ………………………………….
…………………………………..
…………………………………..
…………………………………..
Date:

To,
The Director of Agriculture
Department of Agriculture
Sheshadri road, Banagalore-01
Karnataka
Dear Sir,

Sub: e based- Expression of Interest is invited by the Department of Agriculture for

the year 2015-16.
Ref: Your advertisement in News paper and Tender notice on e-Procurement Website

This is in connection with the above mentioned subject and reference. Having
understood the procedure for Expression of Interest invited by the Department of Agriculture
for establishment of ____________ Custom Hire Service Centers in the State during the year
2015-16 and scope of work of the Charitable Trusts (Registered under Section 25 of
Companies Act, 1956) /Organisations/Non Government Organisations (NGO)/Registered
Farmers Producers Organisations (FPOs)/ Farm machineries Manufacturer, we would like to
express our willingness for establishment of Custom Hire Service Centers in the State during
the year 2015-16.
Kindly find enclosed here with our application and details in the prescribed format for
further needful action.
Thanking you,

Yours faithfully
 FORMAT-1
APPLICATION FORM FOR THE SELECTION OF APPLICANT FOR ESTABLISHMENT OF
CUSTOM HIRE SERVICE CENTRES

1 Name of the Charitable

Trusts (Registered under
Section 25 of Companies
Act,1956) /Organisations/
/Non Government
Organisations (NGO)/
Registered Farmers
Producers Organisations
(FPOs)/ Farm machineries
Manufacturer
2 Address
Registered Office

Tel. No.
Fax. No.
E-mail
3 NAME OF THE HEAD
{In charge of the Charitable
Trusts (Registered under
Section 25 of Companies
Act,1956) /Organisations/
Non Government
Organisations (NGO)/
Registered Farmers
Producers Organisations
(FPOs)}/ Farm machineries
Manufacturer
Tel.No.
Fax. No.
E-mail
4 Year of establishment of the
Charitable Trusts
(Registered under Section
25 of Companies
Act,1956)/Organisations/
Non Government
Organisations
(NGO)/Registered Farmers
 Producers Organisations
(FPOs)/ Farm machineries
Manufacturer
5 Year of commencement
6 Turn Over for the last three
years
2012-13
2013-14
2014-15
7 Professional tax Registration
no.
8 Service tax registration no.
9 Permanent Income Tax A/c.
No.
10 Name of the District/ Taluk/
Hobli applied for
11 Organizational profile : Enclose full details in separate page
12 Details of Bank Guarantee Date:
Name of the Bank:
Amount:

Full Name & address:

Designation/Status:

Signature

Official Seal with Address: __________

Place:
Date:
 MODEL FORMAT FOR BANK GUARANTEE

This Bank ------------------------------------------- hereby stands guarantee for the

Charitable trust/Organisation/NGO /Registered FPOs/ Farm machineries Manufacturer -------

----------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------- for an amount of

Rs. ----------------------- (Rupees ----------------------------------------------------------------) for

the period from date:------------------ to date ---------------- and this Guarantee is in favour of

Director of Agriculture and will be in force for the amount mentioned above during the

period of guarantee. This amount shall be forfeited to the extent required or in full for default

of terms & conditions mentioned in the Expression of Interest document for establishment

of Farm Machinery Custom Hire Service Center in --------------------------------------------------

 CHECKLIST OF ENCLOSURES (Tick the items)

Sl. No Items Details

1. EMD in the form of Bank Guarantee Original

2. Copy of Certificate of Registration of the Enclosed/Not

Applicant Enclosed.
3. Copy of Professional tax Registration no. Enclosed/Not
Enclosed.
4. Copy of Service tax registration no. Enclosed/Not
Enclosed.
5. Copy of Permanent Income Tax A/c. No. Enclosed/Not
Enclosed.
6. Annual Audit Report Details of the Applicant Enclosed/Not
for the last three years Enclosed.
7. State / National Awards (if any) received. Enclosed/Not
Copy to be enclosed Enclosed.
8. Brife Note on the Applicant Enclosed/Not
Enclosed.
9. Affidevit for not have been blacklisted in Enclosed/Not
Karnataka and other States Enclosed.
 Score card for evaluation of CHSC
Sl. Criteria Weightage
No. (Marks)
I In existence for a period of
a) Upto 3 years 05
b) More than 3 years and less than 10
5 years
c) More than 5 years 15
Maximum Marks 15
II Having Net worth of
a) Upto Rs.1.00 crore 05
b) Rs.1.00 to Rs.2.00 crore 10
c) More than Rs.2.00 crore 15
Maximum Marks 15
III. Persons employed, who have knowledge about
Agriculture/ Agri business/Agricultural
Schemes/Farm Machinery.
a) 25workers of which 4 should 05
have knowledge in Agriculture
b) More than 25 workers of which 10
6 should have knowledge in
Agriculture
Maximum Marks 10
IV. Experience of Applicant in handling the
departmental schemes (Departments:
Agriculture, Horticulture, Sericulture, Animal
Husbandry, Health etc).
a) Upto 3 years 05
b) More than 3 years 10
Maximum Marks 10

Note: The applicants are required to have weightage of minimum 25 to get

qualified out of total 50 marks and they should secure atleast 5 marks in
each category to get qualified for next stage.