Finance Concurrence by V V Subaramanian Senior Accounts Officer EOC,Noida.

PROCUREMENT AND WORKS POLICY OF NTPC

OBJECTIVE: TO OPTIMIZE VALUE FOR EACH UNIT OF EXPENDITURE BY: MAKING AVAILABLE GOODS AND SERVICES AT THE RIGHT TIME
AND PRICE IN RIGHT QUALITY AND QUANTITY.

THROUGH: FAIR AND EQUAL CHANCE TO TENDERERS SUBJECT TO POLICY

GUIDELINES

SALIENT FEATURES
1) TWO TYPES OF PACKAGES: CP- CATEGORISED AS A CONTRACTS SP- CATEGORISED AS B CONTRACTS 2) INDENTS 3) ADHERENCE TO PROJECT SCHEDULE 4) QUALITY ASSURANCE/INSPECTION 5) MODES OF TENDERING 6) QUALIFICATION REQUIREMENTS(UNDER - OT) 7) EMD 8) RATE CONTRACTS 9) REPEAT ORDERS 10) TENDER COMMITTEE 11) NEGOTIATION 12) RETENDERING 13) TENDER OPENING 14) LATE/DELAYED TENDER 15) PRICE PREFERENCE 16) PRICE ESCALATION 17) L.D. 18) ARBITRATION 19) APPLICABLE CIRCULARS/RULES/GUIDELINES BOTH INTERNAL AND GOVERNMENTAL

WORKS CONTRACTS

A- CORPORATE PACKAGES B- SITE PACKAGES

REST ALL ARE SAME AS IN PROCUREMENTS

DELEGATION OF POWER SALIENT FEATURES

1) 2) 3) 4) 5) 6) NAVRATNA PSE- AUTONOMY IN DELEGATION FOR THE BOARD OF NTPC DELEGATION- MANAGING DIRECTOR DELEGATION- SUBCOMMITTEE DELEGATION- VARIOUS EXECUTIVES OF THE COMPANY CANONS OF FINANCIAL PROPRIETY DIVISION OF DELEGATION TO VARIOUS EXECUTIVES: SECTION I FOR CONSTRUCTION PROJECTS SECTION II FOR GENERATING STATIONS SECTION III FOR R&D/CENPEEP/ENCON SECTION IV FOR REGIONS/PROJECTS/STATIONS(H.R. AND ADMIN) SECTION VA FOR CORPORATE (H.R. AND ADMIN) AND VB SECTION VI FOR CONSULTANCY WING

DELIBERATION OF SECTION I

1) APPROVAL OF COST ESTIMATE(WORKS) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) CALLING OF TENDERS APPROVAL FOR AWARD APPROVAL OF INDENT(PROCUREMENT) CALLING OF TENDERS APPROVAL OF CONTRACTS POST AWARD VARIATIONS REPEAT ORDERS MODIFICATION IN TERMS OF CONTRACT INSURANCE PROPOSALS MISCELLANEOUS ITEMS

CONCURRENCE PROCEDURE
1) FR/DPR 2) PACKAGING 3) CERTIFICATION OF BUDGET PROCEDURE 4) MODE OF TENDERING 5) QUALIFYING REQUIREMENTS 6) BID DOCUMENTS (a) BILL OF QUANITIES (b) G.C.C. (c) SPECIAL CONDITION OF CONTRACT (d) L.D. STATEMENT (e) DEVIATION STATEMENT (f) EMD (g) TECHNICAL SPECIFICATION (h) INFORMATION TO BIDDER (i) ACCEPTANCE OF IMPORTANT CONDITIONS (j) ESCALATION FORMULA 7) SALE OF BID DOCUMENTS 8) PRE-BID DISCUSSION/CLARIFICATION 9) ASSESSMENT OF VENDORS contd.

CONCURRENCE PROCEDURE (contd)

10) 11) 12) 13) 14)

BID OPENING EVALUATION OF BIDS T.C. MEETING NEGOTIATION WITH BIDDER AWARD RECOMMENDATION

LAWS HAVING SIGNIFICANCE

1) 2) 3) 4)

THE CONTRACT ACT THE SALE OF GOODS ACT THE ARBITRATION AND CONCILIATION GROUP INDUSTRIAL LAWS

GENERAL CONDITIONS OF CONTRACT AND SPECIAL CONDITIONS OF CONTRACT

RELEVANT ISSUES: 1) 2) 3) 4) 5) 6) 7) 8) DISCRIPANCIES AND ADJUSTMENT OF ERRORS DEVIATIONS/VARIATIONS TIME AND EXTENSION FOR DELAY COMPENSATION FOR DELAY DEFECTS LIABILITY PERIOD VALUATION AND PAYMENT LOANS ARBITRATION

BPE GUIDELINES
1) SITE SELECTION 2) DPR/FR 3) REGISTRATION OF PSU 4) TENDERS/CONTRACTING 5) CONSTRUCTION MANAGEMENT 6) COSTING METHOD 7) ACCOUNTANCY MANUAL 8) TOWNSHIPS- FACILITIES 9) WORKING CAPITAL 10) ECONOMY IN EXPENDITURE 11) LOANS BY THE GOVERNMENT 12) INVESTMENT BY PSU 13) COMPLETION REPORT OF PLANT 14) PRODUCTION PLANNING AND CONTROL 15) INVENTORY MANAGEMENT 16) VALUE ANALYSIS 17) MANPOWER REQUIREMENT 18) ESTABLISHMENT MATTERS 19) IMPORTS 20) CDA RULES * NOW BPE HAS BEEN ABOLISHED. DEPTT OF PUBLIC ENTERPRISES IS PLAYING THE ROLE.