COAL INDIA LIMITED

E-PROCUREMENT AT CIL

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 Corporate Structure
Coal India Limited

Eastern Coalfields Bharat Coking Central Coalfields Northern Western South Eastern Mahanadi Central Mine
Limited Coal Limited Limited Coalfields Limited Coalfields Coalfields Coalfields Planning & Design
(ECL) (BCCL) (CCL) (NCL) Limited Limited Limited Institute (CMPDI)
(WCL) (SECL) (MCL)

● The mines of Assam is under NEC which is administered directly by CIL

 CIL has produced 567.36 Million Tonnes of Coal during FY 2017-18.

 Achieved an all-time high off-take of 580.28 Million Tonnes with a 6.8% growth
compared to last year.
 CIL is one of the highest contributors to the government coffers and paid
corporate taxes of Rs. 7432.89 crores to Government of India in financial year
2017-18.
 During 2017-18, Coal India Limited earned a pre-tax profit of Rs. 10,726.44 crores
and a Profit after Tax of Rs. 7,020.22 crores.
Implementation of e-Procurement at CIL
CIL has implemented e-Procurement way back in 2007
itself where Reverse Auction for the first time was used for
procurement of Explosives.
Based on initial success, CIL appointed MSTC as service
provider in 2009 through Tendering process.
In 2011, M/s ITI was appointed as service provider through
Tendering process.
In the year 2013, based on the initial success of NIC at MCL,
MoU was signed on 22nd April, 2013 for developing e-
procurement cum Reverse Auction portal for CIL and its
Subsidiaries.

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Common e-Procurement portal for CIL
and its Subsidiaries
NIC developed a dedicated GePNIC E-procurement
portal (www.coalindiatenders.nic.in) for CIL and its
subsidiaries in 2013.

In January, 2016, CIL has implemented modified

Single Cover System with Reverse Auction.

Approx 33000 Tenders were floated in the FY 2017-18

of Tendered value of Rs. 43,000 crores approx
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 Single Cover Modified System
(For Tender value < = 1 crore)
 The prospective bidders shall upload their bids by downloading
the NIT and the formats (TPS, BOQ etc) along with all the
supporting documents in the e-procurement portal within the
stipulated date of tender submission.
 EMDs are to be paid online through Axis Bank Online payment
system.
 On scheduled date & time of tender opening, bids are opened by
the Tender openers and upon opening of the tender , System
automatically evaluates particulars as contained in Techno
Commercial Parameter sheet uploaded by the bidder and
comparative statement of prices is generated by the system.
 Only the documents of the system declared L-1 bidder are
downloaded and after evaluation of the uploaded documents,
shortfall documents, if required, shall be sought from them.

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 Single Cover Modified System(Cont…)
(For Tender value < = 1 crore)

 Maximum of 2 chances, 7 days for first chance and 5 days for second
chance shall be given to the L-1 bidder to submit shortfall documents.

 If the techno-commercial acceptability of L-1 bidder is established

upon verification of documents, the case is processed by the Tender
committee, for award of the work, after justification of price.

 If techno-commercial acceptability of lowest quoted bidder is not

established, then the L2 bidder is considered as L1. This process is
repeated unless techno-commercially acceptable L-1 bidder is
established.

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 Single Cover Modified System
(For Tender value > 1 crore)
 For estimated tender value more than 1 crore, the tenders are finalised
through a reverse auction system.
 Upon opening of the Tender, system displays item-wise L-1 price. A
reverse auction platform is created in the online portal, displaying only
the item wise start bid price, which is the L1 price received. For Works
and Services tenders, the start bid price is L1 price or the estimated cost +
10% whichever is lower.
 Initial period of Reverse auction ( R A) is kept as two hours. Auto
extensions of time by ten minutes in case of any reduction recorded in the
last ten minutes is allowed till no bid is received in the last 10 minutes.
 The bidder’s identity is not disclosed during the reverse auction process.
This anonymity feature ensures obtaining most competitive price through
R A.
 After R A, system discloses the Bidder’s information and generates
Comparative Statement.

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 Penalty for Defaulting Bidders
 The documents of the bidder who quoted lowest rate item-wise in reverse
auction process are scrutinized and verified and if acceptable as per NIT, they
are declared as L-1 Bidder. The process is continued, if the bidder is a
defaulter.

 Penalties are imposed to the defaulting bidders in case of non submission/

faulty documents as per NIT

 In case of tender for works & services full EMD ( Max Rs 50.0 lacs) is forfeited,
for a defaulter bidder. 8
 IMPROVEMENT IN FINALISATION TIME
Average time cycle
in Conventional Average time cycle
Subsidiary  Tender process in New process % of Improvement
BCCL 84.97 58.80 30.80

CCL 125.00 84.39 32.49

CIL 108.59 68.53 36.89

CMPDIL 138.00 67.31 51.23

NCL 144.66 98.65 31.80

NEC 75.71 55.63 26.52

SECL 118.30 72.36 38.83

WCL 113.09 84.14 25.60

MCL - - 70.92  --

Avg 111.63 73.55 34.11

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 Critical Chain Procurement Process for HEMM
 Tenders issued from CIL, Subsidiary Headquarters and NEC for all HEMM
and high value Mining equipment are published in the CIL e procurement
portal under a specific Organization chain, which supports two part opening.

 There is no change in the creation of the tender from the existing process. On
scheduled date & time of tender only Cover I is opened. The documents and
the TPS of all the Bidders are securitized.

 The techno-commercial acceptability of all the bidders are evaluated and after
evaluation, the date of opening of the Price bids is fixed. On initiating the
process of opening the Price bid, the system will allow for Automatic creation
of Reverse Auction process with the L-1 rate of each item as “Auction Start
Price in INR”.

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 H1 Bidder elimination in Reverse Auction
To encourage serious bidding and obtaining realistic start bid price for RA, CIL
implemented the following:

Item-wise H-1 bidder (in case of goods)/ H1 bidder (for Works and Services)
will be disallowed to participate in Reverse Auction, if more than three techno-
commercially acceptable bids are available. If two bidders have quoted the same
H-1 landed cost, the bidder who submitted/frozen the bid later will not be able
to participate in Reverse Auction.

However, for implementing policy of MSEs and Make in India of GoI, System was
devised for allowing preferential bidders

Tenders are published to allow MSEs and Make in India bidders to submit
their bid as Preferential bidders.

MSEs and Make in India bidders will not be eliminated to participate in R A,

even if they are H-1 bidder.

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Bidders Enrolment with preferential category

During New
Registration/
Edit Profile

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Submission of Bid in Preferential Category

During
Submission
Click Here

Only Preferential
enabled bidder
can see this
option

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Uploading document of Preferential Category

If Select Yes
Need to upload
documents

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 Challenges faced
CIL faced few challenges in implementing the modified single
cover system
The L1 bidders failing to submit the provenness document,
getting rejected.
 Abruptly reducing the price in RA, depriving the other bidders
to participate in RA and thereafter not providing the requisite
documents and allowing their L2 partner to win the tender at
higher price.
Monetary penalty could not be imposed in case of bidders
exempted from paying EMD.
Banning of bidders for individual organizations, where they have
become a defaulter.

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 Awards received
Coal India Ltd has been awarded for “innovative use of
its fully automated tendering process” at a national
workshop organised by the Ministry of Finance,
Department of Expenditure, NIC, Ministry of Electronics
and Information Technology in January, 2018.

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Thank You

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