Mecon Limited: RANCHI - 834002

RANCHI 834002
MECON LIMITED
A Government of India Enterprise
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214
Web site : http://www.meconlimited.co.in

Ref. no. 11.51.A22P/Polymer lining of Coal Tower/Pkg no. SE-409/051 dtd 06.11.09
.
D:\RSP#6( W.I.A22P )\package\Polymer lining - SE - 409\ITT-Polymer Lining.DOC Page 1 of 63

INVITATION TO TENDER (ITT)

To,

Subject: Design, manufacture, supply & erection of Polymer lining and fixtures of
Coal Tower required for Installation of a New 7m tall Coke Oven Battery
No. 6 at Rourkela Steel Plant, Rourkela, Orissa.

1. Tender enquiry no. 11.51.A22P/Polymer lining of Coal Tower/Pkg no. SE-
409/051 dtd. 06.11.2009
2. Item description Design & engineering, manufacture/fabrication,
inspection, supply & erection of UHMW polymer lining and
fixtures of Coal Tower as per Technical Specification No.
MEC/S/A22P/A/10/C1/0416 required for New 7 m tall
Coke Oven Battery # 6 Project of Rourkela Steel Plant,
Rourkela, Orissa.
3. Validity of Tender 3 (Three) months from the due date of submission of
tender.
4. Completion Schedule a) Submission of GA & detailed drawings - within 1
month from the date of placement of fax order.
b) Supply of items - within 7 months from the date of
placement of fax order.
c) Erection of polymer lining - within 10 months from
the date of placement of order.

5. Cost of bidding
document

Rs. 1,000 (Rupees One Thousand only) in form of DD
drawn on any Nationalised/ Schedule Bank in favour of
MECON LIMITED or cheque at par.
6. Earnest Money Deposit

Rs. 10,000/- (Rupees Ten Thousand only) in form of BG
/ DD drawn on any Nationalised / Schedule Bank in favour
of MECON LIMITED.
7. Sale of tender
documents through
MECON Ranchi
Start: 06.11.2009
Close: 26.11.2009 by 16:00 hrs (IST)
8. Due date & time of
submission
27.11.2009 by 16.00 Hrs "Indian Standard Time
(IST)".
9. Place of submission of
bid
Office of the Jt. General Manager (Contracts) MECON Ltd.,
RANCHI - 834 002

Note:

Bidders may depute their authorized representative, on due date of submission of
the tender specified above during opening of techno-commercial offer. Any change
in the due date shall be notified on MECON's website.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
We are enclosing a set of following Attachments and would invite your best binding offer
alongwith supporting documents to fulfill the Qualification Criteria (mentioned in ITT,
MECONs website) and other information as per Summary of Tender and Financial
Questionnaire:

Details of Tender Document

(i) Technical Specification - Attachment-I
(ii) Draft Work Order / Draft Purchase Order - Attachment-II
(iii) Summary of Tender - Attachment-III
(iv) Deviation - Technical Specification - Attachment-III (A)
(v) Deviation - Commercial Terms & Conditions - Attachment-III (B)
(vi) Financial Questionnaire

- Attachment-IV
(vii) Price Schedule Format - Attachment-V
(viii) Declaration by Tenderer - Attachment-VI
(ix) Proforma for
Bank Guarantee in lieu of Earnest Money Deposit
Bank Guarantee for Security Deposit cum Performance
Guarantee
- Attachment-VII
(x) Proforma for Bailment Agreement - Attachment- VIII

All the Attachments mentioned above shall be submitted by the Tenderer alongwith
their tender duly filled and signed on each page as a token of acceptance.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
INSTRUCTION TO TENDER

1.0 ELIGIBILITY CRITERIA, QUALIFICATION & CLARIFICATION

1.1 (TECHNICAL)

i) The Bidder must have experience of design, manufacture / fabrication, supply &
erection of polymer liners for Coal Towers of Coke Oven Batteries / large Coal silos of
lining area more than 600 m
2
in any Plant in India during the last 7 years in one
order from the date of issue of tender.

In order to substantiate their technical capability, the tenderer shall enclose
documentary evidence such as copy of letter of award / contract and completion
certificates / performance certificates / previous supply executed by them giving
name and address of clients, completion period, value of work executed, date of
completion of supplies in their offer.

ii) The bidder should not have received any adverse notice like risk Purchase;
Curtailment/ Cancellation of Contract etc. form the respective Clients in last two
years.

1.2 COMMERCIAL / FINANCIAL

i) The average annual financial turnover of the Bidder during last three financial
years ending on 31.03.2009 shall not be less than Rs.20 lakhs.

ii) The Bidder shall submit Audited Annual Financial Reports/ Balance Sheet and
Profit & Loss statement for last 3 (three) consecutive financial years ending on
31.03.2009.

1.3 QUALIFICATION

i/ It will be presumed that the Bidder has gone through the entire Tender
Document, which shall be binding on the Tenderer.

ii/ MECON will ascertain to its satisfaction whether the Tenderer determined as
having submitted responsive bids are qualified to satisfactorily supply the
equipment tendered. The determination will take into account the Tenderers
financial, technical and other capabilities, in particular its orders in hand, future
commitments, current litigation, if any, and past performance. It will be based
upon an examination of the documentary evidence of the Bidders qualifications
submitted by them. An affirmative determination will be a pre-requisite for
MECON to invite the Bidder to a clarification meeting, if required. A negative
determination will result in rejection of the Bidders bid.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
1.4 CLARIFICATION

MECON may conduct clarification meetings with each or any Tenderer to clarify any
aspects of its offer that require explanation at this stage of the evaluation. During
these meetings, MECON may bring to the attention of the Tenderer any matters,
technical or otherwise, where for whatever reason, it requires clarification / details
about the tender. All such amendments or changes required by MECON will be listed
and will be notified to all the Tenderers. MECON will advise the Tenderer of any
exceptions or deviations in the offer that are to be withdrawn.

2.0 SUBMISSION OF TENDER

a) All pages of the bid document shall be stamped & signed by the authorized
person of the firm / company.
b) Tender shall be prepared and submitted in one (1) SEALED ENVELOPE
containing two individually sealed envelopes i.e. Envelope 1 Part -I & Envelope
2 Part - II as follows:

2.1 PART - I: Techno Commercial Part (One original & 2 copies)

This part shall contain Cost of Tender Document, EMD and complete techno-
commercial Bid in 3 copies (original + 2 copies) and a photocopy of Price Bid after
blanking the price / rate and written "QUOTED instead.

Tenderer shall strictly ensure that this part does not contain any Price at all.
Further, any foot notes, remarks etc. appearing in the Price Bid should necessarily
appear in the un-priced copy of the Price Bid. There shall be no change or addition/
deletion except for filling-up of the actual prices in the Price Bid submitted in Part-II,
as compared to the photocopy submitted in Part-I. Any additions, noting /
superscriptions made in Part- II will make the whole offer void & same shall be
rejected forthwith.

Part - I of the tender shall contain the following :-

i) Cover letter of Tender detailing list of contents in the bid document being
submitted by the tenderer.
ii) Power of Attorney/Authorization with the seal of the company of person
signing the Tender document.
iii) DD / Pay Order/Bankers Check payable at Par at Ranchi towards Cost of
Tender document in favour of MECON Limited.
iv) DD/BG for EMD in favor of MECON Limited. (Attachment-VII)
v) Unpriced copy of Price Format (Attachment-V):Tenderer shall enclose
Photocopy of price part submitted but after blanking the actual price/rate
offered and written "QUOTED instead. Any foot notes, remarks etc. appearing
in the PRICE BID should necessarily appear in the Upriced copy of the PRICE
BID and that there shall be no change or addition/ deletion except for filling-up
of the actual offer / prices in the Price part submitted in Part-II, as compared
to the photocopy of this part submitted with Part-I. Any additions, noting/
super scriptions made in Part -II will make the whole offer void & same shall
be rejected forthwith.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
vi) Attachment - III: Summary of Tender duly filled, signed and stamped on each
page.
vii) Attachment-III (A), Deviation in Technical Part (if any)
viii) Attachment-III B: Deviation in commercial terms & conditions (if any).
ix) Bar chart Schedule indicating all activities.
x) Declaration by Tenderer ( Attachment-VI )
xi) Documents as per technical eligibility criteria as per ITT
xii) Details of similar work carried out by the Tenderer.
xiii) ITT duly signed and stamped on each page.
xi) Draft Purchase / Work Order duly signed and stamped on each page.
xv) Technical Specification duly signed and stamped on each page.
xv) Documents required for financial status / performance of the party.
a) Documents as per Financial eligibility criteria as per ITT.
b) Attachment-IV detailing the financial details sought, duly filled, signed &
stamped.

2.2 PART - II : Price Part (Original + one copy)

The envelope containing the Price Part should clearly be marked as `Part II - Price
Part only - `DO NOT OPEN. Tender No., Item description, Technical Specification No.
and due date shall also be clearly mentioned on the Envelope in Bold Letter. Any
Tender with Price Part received in open condition shall be liable to be rejected.

Part - II of the tender shall contain the following :-

i) Cover letter of Tender detailing list of contents in the bid document being
submitted by the tenderer.
ii) PRICE SCHEDULE indicating percentage and amount of taxes & duties as per
MECON's Price Schedule Format (Attachment -V) without any terms &
conditions attached.

2.3 A covering letter indicating clearly the details of Tender, chapters, Annexure/
schedules of complete Tender shall be submitted describing the contents inside the
main sealed envelope as mentioned above. Tender shall be sent duly sealed indicating
Tender No., Description and Due date of opening written on the main envelope.

2.4 Insertion, post-script, addition and alteration shall not be recognised unless confirmed
by Tenderer's signature and stamp.

2.5 Incomplete Tender or Tenders (not submitted as per requirement of MECON as
indicated in the Ìnvitation to Tender) shall be liable to be rejected.

2.6 It shall be the responsibility of the tenderer to ensure that the tender has been
submitted in the formats and as per the terms & conditions of the tender document
and no change should be made therein. In the event of any doubt regarding the terms
& conditions / formats, the persons concerned may seek clarification in this regard
from MECON.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
2.7 The completion of supplies detailed above is of prime importance for installation of 7
m tall Coke Oven Battery # 6 and the tender is to be finalized within shortest possible
time. As such, tenderer is requested to furnish an exhaustive/complete offer so that
required clarifications/discussions can be minimised. Any request for extension of time
for submission of bid will not be entertained.

2.8 All correspondences with regards to this tender enquiry shall be made at the following
address:

Jt. General Manager (Contracts)
MECON Limited, Ranchi-834002
Phone no. 0651- 2480610 / 248 3618
Fax : 0651- 2480610 / 2482215 / 2482214
E-mail: contract@meconlimited.co.in

3.0 SCOPE OF WORK

3.1 The scope of work shall be as per Technical Specification enclosed herewith at
Attachment-I.

3.2 The Tenderer shall carefully check the specification and other documents and shall
satisfy himself regarding the technical requirement and completeness of the
equipment.

4.0 TAXES AND DUTIES

Taxes & duties shall be as per enclosed Draft Work Order.

5.0 TERMS OF PAYMENT

Subject to any deduction which MECON may be authorised to make under the order,
the contract price shall be payable as indicated in the enclosed Draft Work Order.

6.0 TIME OF COMPLETION

Time of completion is the most important aspect of the order. Tenderer shall complete
entire work in accordance with the Completion Schedule indicated in this Invitation to
Tender. Time of completion shall be firm and binding.

7.0 SECURITY CUM PERFORMANCE BANK GURANTEE

Security cum performance B.G. valid till warranty period for 5% value of the contract
price shall be as per DPO.

8.0 LIQUIDATED DAMAGES

Liquidated Damages shall be applicable as per enclosed Draft Work Order.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
9.0 PERIOD OF VALIDITY OF TENDER

Unless otherwise specified, the Tenderer shall keep his Tender valid initially for a
period of 3 (three) months from the due date of receipt of the Tender.

10.0 LANGUAGE

The Tender shall be submitted in English language.

11.0 EARNEST_MONEY DEPOSIT

a. The Tender must be accompanied by Earnest Money Deposit (EMD) in the form of
a demand draft drawn on any Nationalised/ Schedule Bank in favour of MECON
LIMITED, or a Bank Guarantee (in prescribed proforma enclosed) from a
Nationalised/ Schedule Bank. The earnest money shall be kept deposited or the
Bank Guarantee shall be kept valid (as the case may be) upto a period of four
month beyond the validity of the Tender. The earnest money will not earn any
interest. If the Tenderer after submitting his Tender resiles from his offer or
modifies the terms and conditions thereof in a manner not acceptable to MECON,
the Earnest Money/Bank Guarantee shall be liable to be forfeited/ encashed.
Tenders not accompanied by Earnest Money/ Bank Guarantee shall be rejected.

b. On acceptance of the Tender (but not earlier than the expiry date of validity of
Tender), the Earnest Money/Bank Guarantee will be returned to the unsuccessful
Tenderers on request.

c. Should an Invitation to Tender be withdrawn or cancelled by MECON, which it
shall have the right to do at any time, the Earnest Money/Bank Guarantee will be
returned to the Tenderer.

d. Should the successful Tenderer fail to furnish the Bank Guarantee for Security
Deposit within 21 days from the date of issue of Fax Order, the Earnest
Money/Bank Guarantee shall be forfeited/enforced without prejudice to his being
liable for any further loss or damage incurred in consequence by MECON. The
Earnest Money Bank Guarantee shall be suitably extended, if such a necessity
arises, by the successful Tenderer till the date fixed by MECON for furnishing the
Security Deposit.

e. Earnest Money shall be returned to the successful Tenderer after the Security
Deposit has been furnished to MECON.

f. Central PSUs/ Central Government undertakings and firms registered with SSI /
NSIC and holding valid registration certificates are exempted from submission of
the Earnest Money Deposit.
RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
12.0 COST OF THE TENDER DOCUMENT

12.1 The prospective tenderers are requested to purchase the complete set of tender
document including all relevant drawings from the office of Jt. GM (Contracts), MECON
Limited, Ranchi by submitting the Non - refundable fee, towards cost of tender
document, in favour of MECON Limited, payable at Ranchi for the purpose of
preparation & submission of their tender.

12.2 The Bidder can also view / download the commercial part of the "Tender Document as
well as the brief Technical Specification (excluding relevant drawings) from the
website- http://www.meconlimited.co.in. In case the tenderer downloads the tender
documents from MECONs website as above, Tenderer shall submit non-refundable fee
towards cost of the Tender Document, alongwith their offer, as required as per tender
conditions.

12.3 The Non refundable fee towards cost of Tender documents shall be in the form of
Demand Draft/ Pay Order/ Bankers Cheque from a Scheduled or Nationalized Bank
other than a Co-operative or Gramin Bank, drawn in favour of "MECON Limited
payable at Par at Ranchi.

12.4 SSI/Firms Registered with NSIC are exempted from submission of cost of tender
Document.

13.0 CAPACITY OF THE TENDERER

13.1 TECHNICAL CAPACITY

The Tenderer shall submit a detailed statement of manufacturing facilities available in
his shops for the manufacture of similar equipment.

The Tenderer shall satisfy MECON that he possesses the necessary technical
experience and qualification and that he has at his disposal suitable modern facilities
and staff to ensure that he can undertake the work to the best of quality and
workmanship. The Tenderer shall furnish necessary particulars in this regard with the
Tender. Necessary details in this connection as requested in the Technical Specification
(Attachment-I) may also be furnished.

13.2 LEGAL CAPACITY

The Tenderer shall satisfy MECON that he is competent and authorised to submit
Tender and/or to enter into a legally binding Contract with MECON. To this effect any
person giving a Tender shall render documentary evidence that his signature on the
Tender submitted by him is legally binding upon himself, his firm or company, as the
case may be.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
13.3 AUTHORITY OF PERSON SIGNING DOCUMENTS

A person signing the Tender form or any document forming part of the Contract on
behalf of another shall be deemed to warrant that he has authority to bind such other
and if on enquiry it appears that the person signing had no authority to do so, MECON
may, without prejudice to other civil and criminal remedies, cancel the order and hold
the signatory liable for all costs and damages.

13.4 FINANCIAL CAPACITY

The Tenderer shall furnish the replies to the questions enclosed at Attachment-IV
regarding his financial position to fulfil the contractual obligations offered to be
undertaken by him. The Tenderer shall also indicate the name of his Banker.

14.0 ARRANGEMENT OF TENDER

The Tender shall be neatly arranged, be plain and intelligible, type-written on white
paper with consecutively numbered pages in solid binding and each page signed. They
should not contain any terms and conditions, printed or otherwise, which are not
applicable to the Tender.

15.0 NO CLAIM OR COMPENSATION FOR SUBMISSION OF TENDER

The Tenderer whose Tender is not accepted shall not be entitled to claim any costs,
charges, expenses of and incidental to or incurred by him through or in connection
with his submission of Tenders, even though MECON may elect to withdraw the
Invitation to Tender.

16.0 ACCEPTANCE OF TENDER

The price part of only those tenderers found techno commercially acceptable shall be
opened in the presence of such duly authorised representatives of tenderers who may
wish to attend the price bid opening on a specific date and time. The techno
commercial acceptable tenderers will be informed about the date and time of Price-bid
opening. Five (5) working days notice will be given to techno-commercially acceptable
tenderers for deputing their authorised representative. Only one authorised
representative of each tenderer shall attend the price bid opening. If any discrepancies
are found between the amount given in words and figures, the amount as quoted in
words shall be considered.

The price of all the techno-commercially acceptable tenderers shall be evaluated
considering loading (if any) for deviations in commercial conditions as per Price
Evaluation Clause given in this ITT. The evaluated L1 tenderer shall be arrived after
adding the loading amount, if any.

Tenderer shall note that final discussions on techno-commercial matter, if
any, shall be held with the evaluated L-1 (i.e. lowest) Tenderer only.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
17.0 ACCEPTANCE OF ORDER/ PART ORDER

a) MECON is not bound to accept lowest or any Tender or to assign reasons
whatsoever for non-acceptance.
b) MECON also reserves the right to award work/ finalise order either in whole or
in part. Tenderer shall, accordingly, confirm acceptance of part order in their
tender for such an eventuality.

18.0 PRICE EVALUATION

Price quoted by the tenderer shall be evaluated after loading for such deviation in
commercial terms & conditions. The interest rate to be considered for loading purpose
shall be @15% per annum.
i) Loading For Deviation in Payment Terms
If the tenderer deviates on the payment terms as stipulated in the draft work
order, loading for such deviation shall be done as below:
For deviation in Payment Terms, financial loading shall be done on the portion
of payment claimed before it would become due as per Payment terms
indicated in the Draft Purchase Order (Attachment-II) of the Tender
Document. The period(s) for which such loading shall be applied shall be the
period between proposed time of claiming such payment and the stipulated
time when it would become due as per Tender Document. Further, in case
tenderer asks for payment against dispatch documents prior to delivery of the
equipment of Project Site, a period of 1 month shall be considered for loading
purposes from dispatch of equipment till its delivery at Project site.
ii) Loading for Deviation in Liquidated Damage
In case the bidder does not accept the Liquidated Damage clause of the Draft
Order enclosed, loading shall be done equivalent to the ceiling percentage of LD
amount.

In case bidder takes exception to the liquidated damage percentage limit
indicated in the Draft Order, the Loading shall be done to the extent of the
differential percentage of the liquidated damage between the ceiling specified
in the tender document and the percentage indicated by the bidder.

If the bidder offers to accept the Liquidated Damage on undelivered portion of
the order, loading shall be done for half of the ceiling percentage of Liquidated
Damage specified in the tender document.

iii) Loading for Deviation In Completion Period
If the bidders quote a delivery/completion period longer than what is stipulated
in the tender enquiry & same is agreed to by MECON, then provided the tender
enquiry stipulates that MECON reserves the right to accept or reject the bids
with longer delivery/ completion period, MECON may accept the bids with
longer period with loading. However, efforts shall first be made to pursue the
bidders to accept the delivery. Further, any relaxation in delivery period will be
communicated to the bidders
RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
In case, however, the bidders do not accept the delivery/completion period
stipulated in the tender documents, loading shall be done for the entire
additional period sought beyond the delivery/ completion schedule at the rate/
week or month (as applicable) as specified in the Liquidated damage clause of
the ITT.

iv) Loading for Transportation charges
In case the bidder is required to indicate transportation charges in his price bid
and the same has been indicated as èxtra, loading of his prices shall be done
with the maximum freight charges indicated by other bidders.

v) Loading for Taxes & Duties
If a bidder states less Excise duty, Sales tax/ VAT or indicates that any or all of
these are not applicable presently but states that it will be charged as
applicable at the time of delivery, the bidders price shall be loaded with the
highest rate indicated by the other bidders.

19.0 SALES TAX CLEARANCE CERTIFICATE

The Tenderer shall furnish the Sales Tax Clearance Certificate with the Tender duly
countersigned by the respective officer.

20.0 NOTICE ON BEHALF OF MECON

Notice and Certificate on behalf of MECON in connection with the Contract may be
given by duly authorised officers of MECON.

Any modification which may become necessary in the interim period will be intimated
to the Tenderer as soon as possible.

21.0 PLACEMENT OF ORDER

MECON may place a single order covering total scope of design, engineering, supply,
erection, commissioning and P.G. Test of Plant & Equipment on "Divisible Turnkey
Contract basis or 2 (two) separate orders may be placed - 1
st
for design, engineering
and supply of Plant & Equipment and 2
nd
for erection, commissioning and P.G. Test of
the Plant & Equipment.

22.0 CONFIDENTIALITY

Tenderer shall note that all datas/ drawings/specification enclosed with Tender
document is confidential. Tenderer shall keep all datas/drawings in strict confidence
and shall not copy or pass on any of the Tender papers etc. to any third party.
Tenderer shall return the Tender document alongwith the Tender.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
23.0 GENERAL

Tenderer shall submit their offer strictly as per terms and conditions of Tender
document without any deviation.

Thanking you

Yours faithfully,
For MECON LIMITED

Jt. GM (Contracts)
MECON LTD., RANCHI
Encl: as above
RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.

Attachment - II
DRAFT WORK ORDER

To,
M/s

Amendment No. : Nil
Dated : Nil

Work Order No. Date of Order Completion Date CONTRACTOR's
Code
11.51......

Subject: Design, manufacture, supply, and erection of Polymer lining and
fixtures of Coal Tower required for Installation of a New 7m tall Coke
Oven Battery No. 6 at Rourkela Steel Plant, Rourkela, Orissa.

T.S No.: MEC/S/A22P/A/10/C1/0416

Reference: i) Our Tender Enquiry No. 11.51.A22P/..............
Dated: .....
ii) Your Offer No. .................... dated .....
iii) ....................................
iv) .....................................

Dear Sirs,

With reference to above, we, the MECON LIMITED (herein after referred to as MECON) are
pleased to place our Order on you (herein after referred as CONTRACTOR) for the subject
package as required for Installation of new 7m tall Coke Oven Battery No. 6 at Rourkela Steel
Plant, Rourkela (herein after referred as RSP/ EMPLOYER) as per terms & conditions herein
below :

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
1.0 SCOPE OF WORK & SERVICES
1.1 Your scope of work shall include design & engineering, manufacture/fabrication, supply
and erection of Polymer lining and fixtures of Coal Tower -05 as given in the technical
specification enclosed as Annexure - 1 in full and good condition, Free on Truck/Trailor
(FOR) at Project site stores at Rourkela Steel Plant, Rourkela, Orissa as per the
delivery schedule indicated in this Purchase Order. `
1.2 Your scope of work shall also include procurement of all materials including
components required for completion of supplies, import of equipment / component (if
any), and coordinated planning for manufacture, testing, surface preparation for
painting, painting, inspection, packing, marking, loading on Trucks/Trailors and
transportation to project site at RSP, Rourkela.
1.3 All equipment will be despatched by Road Transport on door delivery and freight pre-
paid basis. In case of despatch through rail, your responsibility shall include taking
delivery of the material at railway siding and delivery to project site at no extra cost to
MECON.
1.4 Provide assistance and necessary instruments, consumables and facilities for carrying
out necessary inspection and testing by MECON including inspection by Consultant
(herein referred as CET).
1.5 Obtaining all necessary clearance/approval from MECON/ Purchaser/ CET and/or any
other statutory bodies/authorities as and when required for the execution of the work.
1.6 Site Works
Contractors scope of work for the above subject also includes storage of supplied
equipment/ items, unloading with/without crane as required, watch & ward of the
equipment / material, assembly & testing of the equipment prior to erection, loading
and transportation of the equipment to project site for erection, erection, grouting,
testing after erection, commissioning, demonstration & establishment of PG
Parameters and FAC.
Contractors scope of work also includes, but not limited to the following:
i) Minor chipping and dressing of foundation, if required, by chiselling,
undertaking all repair, modification and rectification of civil works for
completeness of erection to the satisfaction of MECON / RSP.
ii) Providing shims & wedge plates as required, cotton waste, grease, lubricants,
welding electrodes, oxygen and acetylene cylinders and other consumables as
required for completion of the work.
iii) Providing all labour - skilled, semi-skilled, un-skilled & supervisory personnel
etc. as may be required for completing of erection, testing and commissioning
of the work in all respects.
iv) Providing labour- skilled, semi-skilled, un-skilled & supervisory personnel etc.
as may be required during post commissioning period.
v) Providing adequate tools, tackles, instruments, scaffolding, material handling &
construction equipment like derrick, chain hoist, ropes etc and other material
RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
handling equipment as may be required during erection for completion of the
job in all respects.
vi) Taking required insurance as detailed under Insurance Clause in this work
order.
vii) Timely payment of wages/ benefits to labourers, supervisory personnel
engaged at site as per Wage Acts prevailing during execution of work, keeping
MECON/RSP completely indemnified against such payments. CONTRACTOR
shall keep a record of such payment and produce the same on demand by
MECON/ RSP.
viii) Abide by statutory regulations, labour rules, safety codes during execution of
order and obtaining clearance from MECON/RSP and relevant statutory
authorities as required. CONTRACTOR shall submit all statutory documents as
asked by MECON/RSP.
ix) Abiding by all statutory obligations including ESI, EPF etc. during execution of
order. CONTRACTOR shall submit all documentary evidence in this respect such
as ESI, EPF certificates and Minimum Wage Certificate alongwith each and
every bill or as required by MECON/RSP.
x) CONTRACTOR shall get his electrical installations inspected by the Electrical
Inspector, Govt. of Orissa.
xi) CONTRACTOR shall make arrangement at his own cost for drawing and
distributing construction water and construction power from single point where
415 V, 3 phase, 4 wire A.C power will be provided by MECON/RSP within a
distance of 300 m from battery limit. Electrical power for minor fabrication
work, if any, shall be supplied, metered and charged at the rate prevailing at
RSP from time to time.
xii) The CONTRACTOR shall follow the standard practice in RSPs premises in vogue
in respect of payment of wages etc. to workmen / contract labour employed by
CONTRACTORs / his sub-CONTRACTOR at project sites.
xiii) Material brought to site shall not be removed from the site without the prior
written consent of the MECON/RSP.
xiv) CONTRACTOR shall arrange transportation of all free issue items from RSP
Stores to erection site.
xv) No work shall be covered up or put out of view without the approval of the
MECON/RSP.
xvi) Undertaking all repairs / modification and rectification work for completeness to
the satisfaction of MECON/RSP.
xvii) Display of danger board signs in Oriya, Hindi, English Languages wherever
necessary.
xviii) CONTRACTOR shall, as per written instructions of MECON, procure Structural
Steel and fabricate the same as required from SAIL stockyard for completion of
the work. Non -availability of steel shall not be an excuse for procurement or
progress of work or price escalation and CONTRACTOR shall procure steel of
other make viz. RINL, TISCO, JINDAL, ISPAT conforming to BIS standard
subject to approval by MECON/ EMPLOYER and produce test Certificate for the
same.
RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
xix) CONTRACTOR shall maintain complete record of all the structural steel procured
by him, fabricated for the work and lying in store and produce the same
whenever asked by MECON. CONTRACTOR shall furnish to MECON vouchers for
any materials on demand within 10 days to prove that materials are as
specified.
xx) CONTRACTOR shall not use steel procured for this work for any other work,
unless it is specially permitted by MECON.
RSP, being the absolute owner of the plant, equipment, auxiliaries and other material,
shall issue these equipment / component / material as free issue items to MECON
against Bailment Bond for the purpose of erection. MECON, in turn, shall issue these
equipment /component / material to the contractor for erection, testing and
commissioning. Hence, the contractor shall execute Bailment Bond in favour of MECON
for the value of items taken by the Contractor from MECON for safe custody and use in
erection, testing and commissioning. The Indemnity Bond shall be kept valid by the
contractor till completeness of entire work in his scope.

2.0 CONTRACT PRICE

2.1 The Contract Price for the entire scope of work enumerated above and in accordance
with the commercial terms & conditions, stipulations, specifications, drawings,
requirement and other conditions of the work order is detailed in price schedule
enclosed as Annexure - II. The Contract Price includes FOR site price of Rs.... for
supply of equipment including spares on door delivery freight pre-paid basis to Project
site and price towards erection, testing, commissioning of the system.

2.2 The FOR Site price for supply of equipment is inclusive of Excise duty (incl. edu. Cess
@ ....%), Concessional CST @ ...% / OVAT (as applicable) and Freight charges
incl. Service Tax, for delivery of the System on door delivery basis to Project site, RSP,
Rourkela.

2.3 The contract price for erection, testing, commissioning for the system is inclusive of all
applicable taxes duties & levies, including Orissa VAT on works contract. The expenses
towards various statutory & regulatory bodies, insurance coverage, Service Tax incl.
edn. Cess. thereon shall, however, be paid to the contractor (on submission of their
Tax Invoice) having service tax registration under finance act and the number must
find place on the Invoice raised by them.

2.4 The Contract Price for supply shall be firm and not subject to any variation except for
imposition of any fresh taxes & duties or reduction/ removal of any existing taxes &
duties within contractual delivery period or actual delivery, whichever is earlier as per
Clause 3.0 below.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
2.5 The Contract Price for erection, testing & commissioning shall also remain firm and not
subject to any variation except for imposition of any fresh taxes & duties or reduction/
removal of any existing taxes & duties within contractual delivery period or actual
delivery, whichever is earlier as per Clause 3.0 below.

2.6 The contract price shall be deemed interalia to include and cover all costs and
expenses, including but not limited to the cost for supply of shims, wedge plates,
consumables, cotton waste, lubricants, grease , welding electrodes, oxygen and gas
cylinders etc. , deployment of labour, supervisory personnel, tools, tackles,
equipment, templates, scaffolding, supports and cost of approaches, workman
compensation insurance, automobile liability insurance, insurance for Contractors
workmen, employees and construction equipment at site, taxes, royalties, power,
transport, handling, temporary facilities like labour camps, roads, drains etc., facilities
for testing/checking, security, safety and fire fighting arrangement to be used by the
CONTRACTOR and any other work as detailed in TS or as may be ordered in writing
during tenure of this order.

3.0 TAXES & DUTIES

Except as otherwise specifically provided in the order, the Contractor shall bear and
pay all taxes, duties, levies and charges assessed on the Contractor or its Sub-
Contractors by any authorities of State or Central Government.

3.2 Supply of equipment/ material/ items

3.1.1 Central Sales Tax (CST) at concessional rate on finished equipment (against form `C)
/ Orissa VAT is included in the Contact Price and is also separately indicated at
Annexure II. No Sales tax / Orissa VAT shall be paid on the intermediate products/
components. Sales Tax / Orissa VAT on finished equipment/ items shall be paid at the
rates prevailing at the time of delivery or contractual delivery period, whichever is
earlier and will be limited to taxes actually paid by the contractor. Contractor shall
request to The Incharge (Finance), Sales Tax Cell, MECON, Ranchi for issue of 'C' form
with details like PO. No., Bill No., date, Amount, LR/RR No., etc. A copy of bill may
also be enclosed. On receipt of "C form from MECON, Contractor shall furnish E-I/II
form, failing which additional sales tax liability on account of non furnishing of E-I/II
form shall be to Contractors account. Tax invoice should indicate the OVAT charged in
respect of material supplied by them keeping the contract price unchanged (where
OVAT is applicable).

Consignment Note (L.R.) shall be drawn in name of Manager (Stores)
Modernisation, Steel Authority of India Ltd., Rourkela Steel Plant, Rourkela-
769 001, Orissa. However, Commercial/Tax Invoice for claiming payment shall be
drawn by Contractor in the name of MECON Ltd., Ranchi-834 002 indicating PO No. of
MECON. Tax Invoice shall contain TIN of the contractor in the state of Orissa.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
3.1.2 The Contractor shall draw Excise invoices as per the relevant trade notice to enable
SAIL, RSP avail the CENVAT credit. Excise Invoice showing excise duty shall be drawn
in favour of Manager (Stores) Modernisation, Steel Authority of India Ltd.,
Rourkela Steel Plant, Rourkela-769 001, Orissa. In case Contractor fails to submit
the required documents for claiming CENVAT benefit by RSP or prepares excise invoice
in any name other than RSP the amount of excise duty on such equipment shall not
be paid by MECON.

Duplicate Copy of the Excise Invoice in original marked as "Duplicate for
Transporter under rule 173 - G and 52-A shall be sent alongwith the Transporter
and handed over to MECON, Rourkela / Rourkela Steel Plant.

Excise duty on the finished equipment/system shall be reimbursed at actual against
the "Excise Invoice - original for buyer and proof of handing over of Duplicate copy of
excise invoice to MECON, Rourkela / Rourkela Steel Plant. In addition to the above,
the contractor shall furnish a certificate to the effect that no refund of excise duty has
been obtained or claimed except credit under CENVAT scheme. In case the contractor
obtains any refund in future, the same shall be immediately passed on to MECON in
full.

In case excise duty is not applicable at the time of placement of order and becomes
applicable during execution of order, same shall be borne and paid by the Contractor.
Further, any variation in excise duty due to change in contractors turn over or change
in tariff classification shall be to contractors account.

Invoice should contain all the particulars as per Latest Excise Notification issued by
Central Board of Excise and Customs/other concerned authorities.

CENVAT Credit on free issue items shall be availed by contractor and shall be passed
on to MECON in full at the time of delivery of the equipment.

3.1.3 The adjustment in the Contract Price towards imposition of any new taxes & duties
shall be applicable only if the new taxes & duties are enacted within Contractual
delivery period or actual delivery whichever is earlier. In case of abrogation of existing
tax during the period of execution of order, the Contract Price shall be adjusted
accordingly. The Contract Price shall be adjusted towards variation in taxes in respect
of only finished equipment supplied by the Contractor to MECON. The Contractor shall
bear and pay all liabilities in respect of Statutory variations in taxes and duties and
imposition of new taxes and duties that may be imposed after the Contractual delivery
period, as originally stipulated, in case the delivery period are extended for reasons
not attributable to MECON / Purchaser.

3.1.4 Excise duty & Sales Tax as applicable on Raw Materials/Bought Out Components/Inputs
are included in the Contract price. No adjustment in the Contract price shall be made
for variations in the taxes on raw - materials, parts, component / intermediate
components, assemblies / sub-assemblies, etc.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
3.1.5 Sales Tax Reg. No. of Rourkela Steel Plant :

CST Reg No. : RL1 C-44 & C-44A dtd. 06.03.1959
TIN. no. : 21102000229 dtd. 01.04.2005

Excise details of Rourkela Steel Plant :
ECC no. : 2101020019 (AAACS7062FXM005) for Chapter 72
2101020018 (AAACS7062FXM003) for others
Commissionarate : Bhubaneswar
Division : Rourkela, Nayabazar
Range : RSP 1(for Chapter 72 goods), RSP 2 (for other goods)

Sales Tax Reg. No. and details of MECON:
CST No. : RN (S) /112(C) Dt. 01.10.1975
Orissa VAT Reg No. (TIN No.) : 21882000576
PAN No. : AACCM2119B
3.1.6 Entry tax on for items to be manufactured and supplied from within the state of Orissa is
included in the contract price. The contract price does not include Entry Tax for the
items to be supplied from outside the state of Orissa for which way bill shall be issued.
Entry tax, if applicable, shall be re-imbursed to the contractor against documentary
evidence.
3.1.7 Way Bills
Any consignment from outside the State of Orissa shall not be dispatched by the
contractor any consignment from outside the State of Orissa shall not be dispatched
by the contractor without a valid Way Bill to be issued by PURCHASER in triplicate.
Triplicate copy of the Way Bill will be delivered to MECON, Rourkela at the time of
delivery of materials at site.
Once the material is inspected and ready for dispatch, the supplier shall apply in
advance for issue of Way Bill to MECON, Rourkela indicating the details of consignment
in the format to be furnished by MECON. The request for issue of Way Bill shall be sent
to Jt. GM, MECON Ltd., Rourkela, (Fax No. 0661-2522598, E-mail
rourkela@meconlimited.co.in) with a copy to Jt. GM (Contracts), MECON Limited,
Ranchi as per the prescribed format. The name and address of the person to whom
Way Bill shall be sent by MECON will also be indicated therein.
Way Bill being a very important document, the accounting / reconciliation of Way Bill
by the contractor is a must. Heavy penalty shall be imposed by MECON on the
contractor in case the Way Bill issued to them is lost / misplaced.

3.3 Site works

The contractor shall place the order before Sales Tax Authorities for their examination,
identification and apportionment of the order for applicability of work Orissa VAT Tax
and get the apportionment done in terms of the provisions made under respective
Sales Tax Acts / Rules failing which the contractor will liable for deduction of tax at
sources (TDS) to be made by MECON on full value of the order.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
3.2.1 The CONTRACTOR must be registered under the Orissa VAT Act as well as under
Service Tax Act and registration no. must appear in all commercial Invoice. No
progress payment shall be released to the CONTRACTOR unless the CONTRACTOR
furnishes copy of its Registration Certificate with the authorities concerned. Any tax
liability due to failure on the part of the CONTRACTOR to get itself registered under
the Orissa VAT Act and Service Tax Act shall be to the CONTRACTORs account.

3.2.2 All other applicable Taxes, Duties, Levies, Fees on erection work, as applicable and other
charges legally leviable on the CONTRACTOR in connection with this work order are
included in the contract price and shall be borne and paid by the CONTRACTOR. Tax
invoice indicating the OVAT charged in reference materials by them keeping the contract
price unchanged.

3.2.3 Contractor must raise Tax Invoice in terms of provision of Orissa VAT Act indicating
therein the component of labour services and each type of material attracting different
rate of tax under Orissa VAT Act and Service Tax Act. Further, CONTRACTOR shall
ensure that composite rate is not considered for arriving at the Orissa VAT on works
contract as in that event, Orissa VAT and Service Tax, paid by the CONTRACTOR, shall
not be reimbursed by MECON.

3.2.4 The CONTRACTOR shall certify, if required by MECON/ RSP, that due taxes have been
paid by him on this order and produce evidence of tax paid, which is legally due and
payable on this order MECON/ EMPLOYER shall bear no liability in respect of any taxes,
duties, levies etc. whatsoever.

3.2.5 In case of any dispute about labour content in the contract price raised by the Assessing
Authority while computing Orissa VAT on Works Contract, MECON/RSP shall bear no
liability with Assessing Authority on account of such claim.

3.2.6 The CONTRACTOR shall produce documentary evidence as may be called for by MECON
in respect of taxes, duties etc paid by the CONTRACTOR.

3.4 VARIATION IN TAXES & DUTIES

The Contract Price specified at clause 2.0 is based on the taxes, duties & levies
prevailing on the base date (date of submission of final price bid/final revised price,
whichever is later). If any rate of tax is increased or decreased or a new tax is
introduced or an existing tax is abolished or any change in interpretation or application
of any tax occurs in the course of the performance of work order but within contractual
time frame which would affect the Contractor as an assessee in connection with
performance of the work order, an adjustment of the Contract Price shall be made as per
following Sub -Clause by addition to the Contract Price or deduction there from, as the
case may be.The adjustment in the Contract Price towards variations in taxes shall be
applicable for the variations in the taxes enacted within the scheduled Contractual
completion period provided the works are completed within the completion period of
the order. For any variations in taxes enacted after the Contractual completion period,
the adjustment in the Contract Price shall not apply in case the reasons for delay is
not attributable to MECON not withstanding extension to the completion period is
RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
granted. However, if the completion of work is delayed due to reasons attributable to
MECON and extension to the completion schedule is granted, the adjustment in the
Contract Price for variations in taxes enacted within the extended completion period
shall be allowed.

3.3.1 The adjustment in the Contract Price towards imposition of new taxes or abrogation of
existing taxes, shall be applicable only if the new tax is enacted or existing tax is
abrogated within Contractual completion period. For any variation due to enactment of
new tax or abrogation of existing tax after Contractual completion period, adjustment
in the Contract Price shall not apply.

3.3.2 The CONTRACTOR shall bear and pay all liabilities in respect of statutory variations in
taxes and duties and imposition of new taxes and duties that may be imposed after
the Contractual completion period, as originally stipulated, in case the completion
period is extended due to reasons attributable to CONTRACTOR.

3.3.3 The adjustment in the Contract Price towards variation in the taxes shall be made by
MECON on production of the necessary documentary evidences by the CONTRACTOR,
as sought by MECON.

3.5 DEDUCTION OF INCOME TAX & ORISSA VAT ON WORKS CONTRACT

a) Any Indian Income Tax which MECON may be required to deduct by law/statute,
shall be deducted at the source under Chapter XVII B and the same shall be
paid to the Income Tax Authorities on account of the CONTRACTOR. MECON
shall provide the CONTRACTOR a certificate for such deduction of Tax. The
Contractor shall indicate their Permanent Account Number with the relevant
Income Tax Authority to MECON. Contractor shall maintain Books of Account
and shall get the accounts audited as required under the relevant Act.

b) TDS under Sec. 54 of OVAT Act will be effected subject to production of
certificate from the concerned Sales Tax authority in terms of sub sec. (5) (a) of
sec. 54.

4.0 COMPLETION SCHEDULE

Completion Schedule / Time is the most important aspect of the work order.
CONTRACTOR shall complete the activities required as per the scope of work detailed
in the technical specification and clause 1.0 above in all respects and hand over the
same to MECON progressively as per the following shedule.

a) Submission of GA & detailed drawings - within 1 month from the date of
placement of fax order.
b) Supply of items - within 7 months from the date of placement of fax order.
c) Erection of polymer lining - within 10 months from the date of placement of
order.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
4.1 In order to achieve completion schedule as stated above, CONTRACTOR shall submit
to MECON within 2 (two) weeks from fax order, a detailed work programme / time
schedule in the form of a Bar Chart / Pert Network of complete work for approval by
MECON. Bar Chart/ pert Network as stated above shall include clearly all activities
including mobilization, site clearance, etc.

Detailed Bar Chart / pert network as approved by MECON shall form part of this work
order and work shall be carried out by the CONTRACTOR as per the finally agreed Bar
Chart/Pert Network.

5.0 TERMS OF PAYMENT

Subject to any deductions, which MECON may be authorised to make under the
Contract, the Contract Price shall be payable as follows :

5.1 Supply

Subject to any deductions, which MECON may be authorised to make under the
Contract, the Contract Price shall be payable as follows :

5.1.1 87.5% (Eighty seven & a half percent) of the Ex- Works Packed Price plus 100%
charges towards Excise Duty, Sales Tax (CST/Orissa VAT), freight and entry tax as
indicated in Price schedule shall be paid on pro-rata basis of the receipt of items at
Site Stores of RSP, Rourkela and against submission of complete and correct
documents, in requisite copies, as indicated under clause no. 9.0 hereof at MECON,
Ranchi.

5.1.2 2.5% (Two and a half Percent) of the Ex-works packed price shall be payable upon
issue of Preliminary Acceptance Certificate by RSP and against submission of Pre
receipted invoice in four copies including original at MECON, Ranchi.

issue of Commissioning Certificate by RSP and against submission of Pre receipted
invoice in four copies including original at MECON, Ranchi

5.1.4 5% (Five Percent) of the Ex-works packed price shall be payable upon issue of
Performance Guarantee Certificate by RSP and against submission of Pre receipted
invoice in four copies including original at MECON, Ranchi.

issue of Final Acceptance Certificate by RSP and submission of following documents
at MECON, Ranchi

a) Pre receipted invoice in four copies including original.
b) Receipted copy of LR/CN evidencing delivery of last consignment at site.
c) Exchange of sales tax form
RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
d) Return of drawings & documents / submission of all drawings, reproducible.
e) No claim certificate
f) Payment reconciliation statement duly concurred by MECON
g) Certificate of completion of all obligations by Contractor by MECON duly certified by
MECON Engineer.

5.2 Erection

5.2.1 87.5% (Eighty Seven & a half Percent) of the Contract Price towards erection shall be
payable on monthly pro-rata basis subject to satisfactory progress of work based on
certification by the MECON`s Site Engineer in the following manner:

The payment under clause 5.1.1 & 5.2.1 above shall be released to the contractor
upon submission of following documents in four sets at MECON, Ranchi:

i) Tax Invoice - contractor must raise Tax Invoice in terms of provision of Orissa
VAT Act indicating therein the component of labour services and each type of
material attracting different rate of tax under Orissa VAT Act and Service Tax Act.
ii) Measurement sheet duly signed by CONTRACTOR and certified by MECON's site
engineer/RSP representative.
iii) Abstract of measurement sheet and work done till previous bill, the running and
cumulative quantities certified by MECON site representative.
iv) Documentary evidence towards payment of ESI, EPF etc. as per statute.
v) Abstract sheet for ESI & EPF
vi) Wage sheet & copy of valid gate pass of the workmen whose name appears on the
wage sheet
vii) Undertaking that CONTRACTOR has complied with all statutory requirements as
per Work Order during the period for which the progress payment has been
claimed.

5.2.2 2.5% (Two & a half Percent) of the the contract price towards erection shall be
payable upon issue of Preliminary Acceptance Certificate by RSP and submission
of Pre receipted invoice in four sets including original at MECON, Ranchi

payable upon issue of Commissioning Certificate by RSP and submission of Pre
receipted invoice in four sets including original at MECON, Ranchi
5.2.4 5% (Five Percent) of the the contract price towards erection shall be payable upon
issue of Performance Guarantee Certificate by RSP and submission of Pre
receipted invoice in four sets including original at MECON, Ranchi

payable upon issue of Final Acceptance Certificate by RSP and submission of
following documents in four sets including original at MECON, Ranchi:

- Pre-Receipted Invoice.
- Completion Certificate issued by MECONs site engineer.
- CLC certificate issued by RSP for the entire period of completion of work
RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
. - No claim Certificate by the CONTRACTOR.
- EPF clearance from Regional Provident Fund Commissioner, Bhubaneshwar.
- ESI clearance from regional ESI authority.
- Final PF observation report against the work order.
- Copies of all statutory documents as required by RSP.
- Statement of reconciliation of all the payments and recoveries made in the
progress bills
- Details of Recovery statement, with respect to crane hire charges etc. if any.
- Site clearance including dismantling of store / office as directed by
MECON/RSP.
- Undertaking for indemnifying MECON/RSP against any liability arising in future.

5.3 All payments shall be released within 45 days through Electronic Fund Transfer (NEFT
/ RTGS) upon submission of pre receipted invoice alongwith correct & complete
documents at MECON, Ranchi. MECON will not be responsible for delay in payments in
case of non receipt of documents / receipt of incorrect & incomplete documents. The
Contractor shall intimate their Bankers details and Account No. etc. to Finance
Section, MECON, Ranchi.

5.4 All interim / progress payments shall be regarded as Payments by way of advance
against the final payment only and not as payment for work completed and shall not
preclude defective / imperfect / incomplete Plant to be removed. It will not be
considered as an admission by MECON of the due performance of the order, or any
part thereof by the Contractor nor shall it preclude, determine or affect in any way the
powers of MECON under these conditions or in any way vary or affect the Contract.

5.5 All costs, charges or expenses which the Contractor is liable to pay may be deducted
by MECON from any money due or becoming due to the Contractor against the subject
order or any other order being executed, or may be recovered, at MECON's sole
discretion, by action of law or otherwise from the Contractor.

6.0 SECURITY DEPOSIT CUM PERFORMANCE BANK GUARANTEE

6.1 The Contractor will furnish, within 21 days from the receipt of Fax order, Security
Deposit cum Performance guarantee in the form of a Bank Guarantee for a value of
5% of the Contract Price in favour of MECON in the prescribed proforma.

6.2 The Security Deposit Cum Performance Guarantee shall be for the due and faithful
performance of the Contract and shall remain binding notwithstanding such variation,
alteration or extension of time as may be made, given, conceded or agreed to
between the contractor and MECON in the Contract.

6.3 The Security Deposit Cum Performance Guarantee furnished by the contractor will be
subject to the terms and conditions of this order and MECON will not be liable for
payment of any interest on the Security Deposit or any depreciation thereof.
6.4 The Bank Guarantee towards Security Deposit Cum Performance Guarantee shall be
kept valid till Warranty / Guarantee period and shall be released on your application
after expiry of Warranty / Guarantee period.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
6.5 If the extent or object of the Contract is altered during the execution of the Contract
in such a way as to effect an increase or reduction of the Contract price by more than
10%, the value of Security Deposit shall be adjusted accordingly, without altering the
provisions as mentioned hereinabove.

6.6 Bank guarantee shall be in MECON's proforma. Bank charges for establishing the bank
guarantee & subsequent extensions shall be to Contractors account.

7.0 DEDUCTION OF CONTRACT PRICE

All costs, charges or expenses which the CONTRACTOR is liable to pay may be
deducted by MECON from any money due or becoming due to the CONTRACTOR or
encashment of Bank Guarantee (s) or may be recovered, at MECON's sole discretion,
by action of law or otherwise from the CONTRACTOR.

8.0 LIQUIDATED DAMAGES

8.1 LIQUIDATED DAMAGES FOR DELAY
Time and date stipulated in the Purchase Order for completion of work shall be the
most important aspect of the order. The CONTRACTOR shall complete the work in
accordance with the schedule stipulated in the work Order. If, however, the
CONTRACTOR fails to complete the work in accordance with the time schedule, or
within such extended time schedule as may be further granted to the
CONTRACTOR, the CONTRACTOR shall be liable to pay as liquidated damages and not
by way of penalty by making deduction from the CONTRACTORs account or by
encashment of CONTRACTORs bank guarantees @ 0.5% of the Contract Price plus
escalations if any, excluding taxes and duties paid or payable to the CONTRACTOR,
per week of delay or part thereof upto a maximum of 5% of the Contract Price plus
escalations if any, excluding taxes and duties paid or payable to the CONTRACTOR.

MECON shall recover the amount of Liquidated Damage against clauses 8.1 above, but
not by way of penalty, from the amount payable to the contractor against PAC (2.5%),
commissioning certificate (2.5%), Performance Guarantee Certificate (5%) & Final
Acceptance Certificate (2.5%) and encashment of Security Deposit Cum Performance
Bank Guarantee (if that becomes necessary).
8.2 FOR NON-FULFILMENT OF PERFORMANCE GUARNTEE
The contractor shall undertake to demonstrate and achieve the performance
guarantee parameter specified in the technical specification. If the equipment fails to
achieve the guaranteed parameters/values as specified in Technical Specification
during demonstration of the performance guarantee test, MECON shall recover the
amount of liquidated damages, but not by way of penalty, by making deduction from
the contractors account or by encashment of contractors Bank Guarantee upto a
maximum of 7.5% of the final contract price excluding taxes and duties.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
8.3 TOTAL LIABILITY FOR DELAY AND NON-FULFILMENT OF PERFORMANCE
GUARANTEE VALUES.

The aggregate ceiling of Liquidated Damages on account of delay and non-fulfilment of
performance guarantee parameters shall be limited to 10% of final Contract Price
excluding taxes and duties.

MECON shall recover the amount of Liquidated Damage against clauses 8.1& 8.2
limited to 8.3 above, but not by way of penalty, from the amount payable to the
contractor against Commissioning Certificate (2.5%), Performance Guarantee
Certificate (2.5%), Final Acceptance Certificate (5%) and encashment of Performance
Bank Guarantee (if that becomes necessary).

8.4 Payment or deduction of Liquidated Damages shall in no way relive the CONTRACTOR
from his Contractual - responsibility to complete the work.

9.0 SUBMISSION OF DESPATCH DOCUMENTS AND INVOICE

Immediately after delivery of the equipment at site the documents listed below shall
be sent by the Contractor to the following address by Speed Post/Courier in folders:

Address Documents
A) Jt. GM
(Contracts),
MECON Ltd.,
Ranchi-834002

i)
ii)
iii)
iv)

v)

vi)
vii)

viii)
ix)
x)

xi)
Receipted LR/CN (Original + 5 copies)
Challan (Original + 5 copies)
Packing List (Original + 5 copies)
Pre-receipted Commercial Invoice / Tax Invoice
(Original + 5 copies)
Òriginal for Buyer copy of the Excise Invoice (Original +
5 Copies)
Inspection Clearance/Waiver Certificate (6 copies).
`Duplicate for Transporter copy of Excise Invoice (6
copies)
Way bill, if issued (6 copies)
Manufacturers Test Certificate (6 copies)
Guarantee Certificate that materials supplied are new
(Original + 5 copies)
Certificate that content in each case are not less than
those entered in invoice & challan (Original + 5 copies)
B)

General Manager
MECON Limited.
Rourkela , Orissa
i)
ii)
iii)
iv)

v)
vi)
vii)
viii)
2 copies of LR
2 copies of Challan
2 copies of Packing List
2 copies Transporters copy of Excise Invoice (Original +
1 copy)
2 copies of Inspection Certificate/Waiver Certificate
2 copies of Way Bill, if issued.
2 copies of Pre-receipted Commercial Invoice
2 copies of Material Test Certificate

In order to avoid detention/ seizure of goods at check post during transit, the
Contractor shall send the following documents alongwith the equipment:

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
a) Sales Tax Registration Nos. of MECON & PURCHASER.
b) Delivery Challan.
c) Packing List
d) Consignment note/Lorry Receipt (LR)
e) Way Bill
f) Transporter copy of Excise Invoice (Duplicate for Transporter)

In the event of any detention/seizure of goods, the Contractor shall depute his
personnel dealing with Sales Tax to take up the matter with appropriate authorities to
get the goods released. Without prejudice to any other rights as provided in the
contract, the Contractor shall keep MECON harmless and be responsible for any
loss/damage/delay etc.

10.0 SUB-LETTING

The CONTRACTOR shall not sublet/sub-contract the whole or any part of work or
assign the order or any part thereof without the prior written consent of MECON. Such
consent, if given, shall not establish any contractual relationship between the Sub-
CONTRACTOR(s) and MECON and shall not relieve the CONTRACTOR of any liability,
responsibility or obligation under this order and the CONTRACTOR shall be responsible
for the acts, defaults or neglects of any Sub-CONTRACTOR or his representative or
workmen as fully as if they were the acts, defaults and neglects of the CONTRACTOR
himself. In the event the CONTRACTOR contravenes this condition, MECON reserves
the right to reject the Work sub-contracted and complete the same from elsewhere at
CONTRACTORs Risk and Cost. The CONTRACTOR shall be solely liable for any loss or
damage which MECON / RSP may sustain in consequence or arising out of such
replacing of the contract work.

11.0 TYPE, QUALITY OF MATERIAL AND WORKMANSHIP

11.1 The CONTRACTOR shall be deemed to have carefully examined and to have knowledge
of the conditions, specifications, schedules, drawings, etc. forming part of the order
and also to have satisfied himself as to the nature and character of the work to be
executed and, where necessary, of the site conditions and other relevant matters and
details. Any information thus had or otherwise obtained from MECON shall not in any
way relieve the CONTRACTOR from his responsibility for executing the work in terms
of the order.

11.2 The Contract work shall be of the best quality and workmanship according to the
latest engineering practice in vogue at the time of entering into the Contract.

11.3 Codes and Standards referred in Contract documents shall be followed. Codes and
Standards of other countries can be followed with the prior written approval of MECON
provided the standards are equal to or better than the corresponding standards
specified in the order.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
12.0 SUBMISSION OF PROGRESS REPORT

CONTRACTOR shall furnish progress report as 1
st
& 15
th
of every month showing the
progress of each activity as per the bar chart agreed between MECON and
CONTRACTOR. If requested by MECON, CONTRACTOR shall also furnish three (3)
prints each to the MECON of progress photographs of the work done at Site.

13.0 PROTECTION OF WORK

The CONTRACTOR is responsible for protecting his "Work till it is finally accepted by
MECON, No claim will be entertained by MECON for any damage or loss to the
CONTRACTORs `Work. CONTRACTOR is also responsible for complete restoration of
the damaged `Work to its original condition to comply with the specifications and
drawings keeping MECON / RSP / Co - CONTRACTORs completely indemnified.

14.0 TITLE AND ASSUMPTION OF RISK

14.1 The transfer of title to ownership under this order shall pass on to the employer on its
accretion on payments of Orissa VAT & service tax in the state of Orissa.

14.2 Notwithstanding the transfer of ownership of the Plant and Equipment, the
responsibility for care and custody thereof together with the risk of loss or damage
thereto shall remain with the CONTRACTOR until Commissioning of the Facilities in
which such Plant & Equipment, structures, civil construction work and refractories are
incorporated. The CONTRACTOR shall make good, at its own cost, any loss or damage
that may occur to the facilities or relevant part thereof from any cause whatsoever
during such period. The CONTRACTOR shall also be responsible for any loss or damage
to facilities caused by the CONTRACTOR or its sub-CONTRACTOR in the course of any
work carried out pursuant to clause 17.0 (Maintenance Guarantee).

15.0 PERMITS AND LICENSES

15.1 The CONTRACTOR shall at its own expense obtain all permits and licenses from
concerned authorities / Indian Government required for the performance of work under
this order and the CONTRACTOR shall be required to bear all fees paid to the
Government or local licensing authority for obtaining permits and licenses. MECON
shall not reimburse the CONTRACTOR for any such fees paid. The CONTRACTOR shall
perform the work in accordance with the conditions of all applicable permits and
licenses.

15.2 The CONTRACTOR shall provide MECON with evidence of licenses granted and any
restrictions contained therein.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
16.0 ACCEPTANCE

16.1 INSPECTION

The Contract work shall be inspected by MECON / RSP/ CET to ensure that the plans
and specification are being properly executed. MECON / RSP / CET shall have access
and right to inspect the work or any part thereof at any stage. If by the above
inspection, MECON / RSP / CET reject any work, the CONTRACTOR shall make good
such rejections either by modifications or repairs as may be necessary, to the entire
satisfaction of MECON. Such repair modifications include re - erection of such of those
works of other CONTRACTORs and / or agencies, which might have got damaged or
affected by re - work done to the CONTRACTORs work.

16.2 PRELIMINARY ACCEPTANCE

On completion of erection of all Facilities, trial runs for individual equipment / units
shall be conducted to prove that the Facilities have been supplied and erected as per
order and after erection, Facilities are fit for start up and commissioning. After
successful completion of the trial runs of individual equipment / unit and liquidation of
the defects / deficiencies indicated by RSP, Integrated trial runs shall be undertaken.
Preliminary Acceptance Certificate shall be issued by RSP as soon as all works in
respect of integrated Pre-Commissioning are completed and the Facilities are ready for
Commissioning.

16.3 COMMISSIONING

After the issue of Preliminary Acceptance Certificate by RSP, the facilities shall be
started up and commissioned. The Commissioning Certificate shall be issued by RSP
subject to the following:

a) First coke push from all ovens within the contractual completion period has been
successfully completed and the quality of material & other parameters are as per
technical specifications provided quality of input material & other parameter to be
provided by RSP are as specified in technical specification.
b) All necessary drawing and documents for the respective facilities have been
submitted in accordance with MECON/RSP contract.
c) All objections / observations, if any, contained in the PAC has been met to the
satisfaction of RSP.

16.4 FINAL ACCEPTANCE

Final Acceptance certificate in respect of the Facilities shall be issued by RSP when the
performance guarantee tests have been successfully completed and the guaranteed
output and other parameters are met or the amount of Liquidated Damages, if
recoverable, has been recovered.
&
All the obligations under the MECON/RSP contract have been fulfilled.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
17.0 COMPLETION CERTIFICATE

17.1 Within 10 (Ten) days of the completion of the work, CONTRACTOR shall give notice of
such completion to MECON. MECON shall inspect the work and after satisfying itself
with tests as required, shall issue a completion certificate to the CONTRACTOR, if there
is no defect, imperfection or short fall in the work.

17.2 No completion certificate shall be issued nor shall the work be considered to be
complete until the CONTRACTOR removes from the site all scaffolding, surplus
materials, rubbish, etc. and all temporary works and cleans off the dirt from wood
work, doors, windows, walls, floors, or other parts of the work.
18.0 WARRANTY/GUARANTEE/ MAINTENANCE GUARANTEE PERIOD

18.1 The CONTRACTOR guarantees that for a period of 12 (twelve) months commencing
from the date of issue of Commissioning certificate by RSP, the Contract work shall not
show any sign of defects.

18.2 The CONTRACTOR shall maintain and satisfactorily execute at his own cost all such
works of repair, amendment, re-erection, rectification, replacement, all regular
schedule work and any other work to make good the faulty work as stated under
`Completion certificate for a period of 12 months from the date of issue of
commissioning certificate by RSP.

18.3 If the repair, re-erection, replacement or making good is of such a character that it
may affect the efficiency of the Facilities or any part thereof, MECON may give to the
CONTRACTOR a notice requiring that tests of the defective work shall be made by the
CONTRACTOR immediately upon completion of such remedial work, whereupon the
CONTRACTOR shall carry out such tests.

If the CONTRACTOR does not commence the rectification either by repair or
replacement of such defects within 30 (thirty) days from the date of notice by MECON
or does not complete the rectification with reasonable diligence and within a
reasonable time, MECON may, at its option, rectify the defects at the CONTRACTORs
expense. MECON shall, in such case, deduct from payment due to the CONTRACTOR
the expenses incurred by MECON for remedy of such defects without prejudice to the
other rights of MECON under the order.

18.4 If the Facilities or any part thereof cannot be used by reason of such defect and / or
making good of such defect, the Maintenance Guarantee Period of the Facilities or such
part, as the case may be, shall be extended by a period equal to the period during
which the Facilities or such part cannot be used by MECON because of any of the
aforesaid reasons.

19.0 RESPONSIBILITY FOR PERFORMANCE OF CONTRACT

19.1 The CONTRACTOR shall be entirely responsible for the due performance of the order in
all respects according to the intent and meaning of the drawings, specifications and all
other documents referred to in this order. MECON will have the right to reject the work
done by the CONTRACTOR if it is found that the work carried out by the CONTRACTOR
is not in conformity with the terms and conditions of the order in all respects.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
19.2 The CONTRACTOR shall co-operate with MECONs other Contractors, if any, and freely
exchange all technical information with them to obtain the most efficient output. No
remuneration shall be paid by MECON for such technical cooperation.

20.0 RESPONSIBILITY FOR COMPLETENESS

The CONTRACTOR shall, unless specifically excluded in the order, perform all such
work and /or supply all such items and materials not specifically mentioned in the
order but that can be reasonably inferred from the order as being required for
attaining Completion of the Facilities, as if such work and / or items and material were
expressly mentioned in the order, without extra charges and the work must be
completed in all respects within the stipulated completion period.

21.0 LIQUIDATION, DEATH, BANKRUPTCY, ETC.

21.1 If the CONTRACTOR shall die, dissolve or become bankrupt or insolvent or causes or
suffers any receiver to be appointed of his business or any assets thereof compound
with his creditors, or being a corporation commence to be wound up, not being a
member's voluntary winding up for the purpose of amalgamation or reconstruction, or
carry on its business under a Receiver for the benefits of its creditors or any of them,
MECON shall be at liberty :

i) to terminate the order forthwith upon coming to know of the happening of any
such event as aforesaid by notice in writing to the CONTRACTOR or to the
Receiver or Liquidator or to any person in whom the order may become
vested,
or
ii) to give such Receiver, Liquidator or other person the option of carrying out the
order subject to his providing a guarantee up to an amount to be agreed for
the due and faithful performance of the order.

22.0 RIGHTS OF MECON TO VARY/ CHANGE THE ORDER

22.1 MECON from time to time during the period of performance of this order, reserves the
right to make changes within the general scope of this order in drawings, designs,
specifications, method of shipment, or require additional work, or direct the omission
of work.

22.2 If any such change causes an increase or decrease in the cost of, or the time required
for the performance of this order, or otherwise affects any other provision of this
order, the commercial implication shall be mutually discussed and agreed upon with
MECON.

22.3 Notwithstanding anything contained in this article the CONTRACTOR shall not
suspend or cease the performance of this order for reasons of any change or any
dispute or any Arbitration proceedings.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
23.0 SUSPENSION AND TERMINATION

23.1 MECON may at any time temporarily stop the work under the order or any part
thereof by notice in writing to the CONTRACTOR. MECON will not be liable to the
CONTRACTOR for any damage or loss or idle wages caused by such period of
suspension of work.
23.2 MECON will be at liberty to terminate the order without prejudicing its rights and
affecting the obligations of the CONTRACTOR by giving 15 days notice in writing in
the following events :

a) If the CONTRACTOR fails to show progress of work or the work is found
unsatisfactory.
b) If the CONTRACTOR fails to comply with the provision/ provisions of the order.
c) If the CONTRACTOR is involved in any action involving moral turpitude.

24.0 NEGLIGENCE, DEFAULT AND RISK PURCHASE

24.1 If the CONTRACTOR fails to execute the work with due diligence or expedition or shall
refuse or neglect to comply with any order given to him in writing by MECON in the
order, MECON may give notice in writing to the CONTRACTOR calling upon him to
make good the failure, neglect or contravention within such time as may be deemed
reasonable and in default of the compliance with the said notice, MECON without
prejudice to its rights under the order, may rescind or cancel the order holding the
CONTRACTOR liable for the damages that MECON may sustain in this regard.

24.2 Should the CONTRACTOR fail to comply with such notice within a reasonable period
from the date of serving thereof, MECON shall have the option and shall be at liberty
to take the work wholly or in part out of the CONTRACTORs scope and may complete
the work envisaged in the order themselves or may recontract to any other person or
persons to execute the same or any part thereof and provide other materials, tools,
tackle or labour for the purpose of completing the work or any part thereof at the
CONTRACTORs Risk and Cost. This shall be without prejudice to MECON's rights under
other clauses of this order.

24.3 MECON shall have right to recover all expenses, costs and charges incurred in
completion of the work by deducting any money due or which may become due to the
CONTRACTOR or by revoking the Bank Guarantees.

24.4 If the cost of executing the Facilities as aforesaid shall exceed the sum due to the
CONTRACTOR and the CONTRACTOR fails to make good the deficit within the specified
period, the Employer shall have the right to lien over the said materials, tools, tackles,
construction plant or other things and properties of the CONTRACTOR as may not have
been used up in the completion of the Facilities, and may be sold by the Employer
after serving due notice to the CONTRACTOR and such proceeds applied towards the
adjustment of such difference and the cost of incidentals to such sale. Any outstanding
balance existing after crediting the proceeds of such sale shall be paid by the
CONTRACTOR on the demand of the Employer, but when all expenses, cost and
RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
charges incurred in the completion of the facilities are paid by CONTRACTOR, all such
materials, tools, tackles, construction plant or other things not used in the completion
of the facilities and remaining unsold shall be removed by the CONTRACTOR with the
written permission of the Employer.

24.5 If the CONTRACTOR performs any work in a manner contrary to the order, without the
approval of MECON, the CONTRACTOR shall bear all the costs arising therefrom and
shall be responsible for all losses to MECON arising therefrom.

25.0 REJECTION OF DEFECTIVE WORK

25.1 If the completed work or any portion thereof, after it is accepted or taken over be
found defective or fails to fulfil the requirements of the order, MECON shall give the
CONTRACTOR notice setting forth particulars of such defects and the CONTRACTOR
shall forthwith make good the defective work and ensure that it complies with the
requirement of the order. Should the CONTRACTOR fail to do so within reasonable
time, MECON shall get it rectified at the Risk and Cost of the CONTRACTOR, the whole
or any portion of the work, as the case may be, which is defective or fails to fulfil the
requirements of the order. Such rectification shall be carried out by MECON within a
reasonable time and at reasonable price and where reasonably possible to the same
specifications. The CONTRACTORs liability under this clause shall be satisfied by
payment to MECON the amount spent by MECON on rectification / replacement of the
work including charges for supervision of work.

25.2 In the event of such rejection MECON shall be entitled to use the work in a reasonable
and proper manner for a time reasonably sufficient to enable it to obtain its
replacement.

26.0 BENCH MARK AND CONTRACTOR'S SUPERVISION

26.1 The Contractor shall be responsible for the true and proper setting-out of the Facilities
periodically in relation to bench marks, reference marks, check lines and levels provided
to it in writing by or on behalf of the Employer. If, at any time during the progress of
installation of the Facilities, any error shall appear in the position, level or alignment of
the Facilities, the Contractor shall forthwith notify the Engineer of such error and, at its
own expense, immediately rectify such error to the reasonable satisfaction of the
Engineer.

26.2 The Contractor shall give or provide all necessary superintendence during the installation
of the Facilities, and the Contractors Representative or its deputy shall be constantly on
the Site to provide full-time superintendence of the installation. The Contractor shall
provide and employ only technical personnel who are skilled and experienced in their
respective discipline and supervisory staff who are competent to adequately supervise
the work at hand.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
27.0 TRANSFER OF TITLES

27.1 Supply

The title of ownership and property to all goods, materials, equipment etc. shall pass
to the Purchaser after the Contractor has effected the despatch of the same to 'RINL-
VSP A/C Contractor or the Contractor has effected the sale, in course of transit, as the
case may be, as per Section 6(2) of the Central Sales Tax Act 1956 and the Contractor
has prepared necessary documentation for handing over the same to VSP / MECONs
authorised representative, provided however, such passing of titles of ownership and
property to the Purchaser shall not in any way absolve, dilute or diminish other
responsibilities and obligations of the Contractor under the Contract.

27.2 ERECTION WORK

The title of ownership and property to all goods, materials, equipment (including spare
parts) etc. issued to the Contractor against Bailment Bond shall be vested with the
Employer all the time till erection, commissioning and completion of Performance
Guarantee Tests as per the terms and conditions of the Contract.

28.0 CALIBRATION OF MEASURING INSTRUMENTS
All instruments required for measurement/inspection of items covered under this order
are to be properly calibrated through a Government recognised or equivalent test
house and all relevant certificates pertaining to calibration are to be submitted to
MECON to enable deputation of inspection engineers.

29.0 COMPLIANCE WITH STATUTORY LAWS AND OTHER REGULATIONS

29.1 The CONTRACTOR shall, throughout the performance of this order, comply with all the
laws, rules, regulations and statutory requirements/obligations of Government of
India/ State/ Local Government and other statutory bodies applicable at Site for this
contract work and MECON/ RSP shall not be liable for any action of the statutes
applicable due to non-fulfillment of statutory obligations by the CONTRACTOR.

29.2 The CONTRACTOR shall give all notices and pay all fees required to be given or paid
under any Central or State statute, ordinance or other law or any regulation or by-law
of any local or other duly constituted authority in relation to the execution of the work.

29.3 The CONTRACTOR shall conform in all respects with the provisions of any statute,
ordinance or laws as aforesaid and the rules, regulations or by-laws of any local or
other duly constituted authority which may be applicable to the works or to any
temporary works and with such rules and regulations of public bodies as aforesaid and
shall keep MECON/ RSP indemnified against all penalties and liabilities of every kind
for breach of any such statute, ordinance, law, rule, regulation or by-law etc.

29.4 The CONTRACTOR shall get himself registered with the concerned authorities as
provided under various applicable Acts and shall be directly responsible to such
authorities for compliance with the provisions thereof.
29.5 By way of illustration of various Acts as stated in the contract, the following Acts or
any amendment thereof shall be complied with by the CONTRACTOR.
i) Employee Provident fund Act, 1952.
ii) Contract Labour Act (Regulation and Abolition Act, 1970)
iii) Minimum wages Act, 1948 & minimum wages fixation Act, 1962.
iv) Payment of wages Act, 1936.
RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
v) Workmen compensation Act, 1923.
vi) Factories Act, 1948.
vii) Apprenticeship Act, 1961.
vii) Family Pension Act, 1952.
viii) Contract labour (Regulation and Abolition) Central Rate 1971
ix) Employee liability Act 1938
x) Industrial Dispute Act 1947
xi) Employee state Insurance Act 1948
xii) The Building and Other Construction Works (Regulation and Condition of
Contract) Act 1996.
xiii) Cess Act 1996

29.6 The CONTRACTORs establishment shall be subjected to inspection, investigation etc.
by MECON/RSP for ensuring proper and faithful compliance of the provisions of this
order by the CONTRACTOR with regard to labour laws and matters stated in this
clause.

29.7 The CONTRACTOR shall provide, at his own cost, to all staff and workmen directly or
indirectly employed in the works, all amenities for securing proper working and living
conditions at the Site and at the labour camp. The CONTRACTOR shall also provide
medical facilities at the site as per rules in force in relation to strength of their staff
and workmen deployed at site.

30.0 LABOUR

30.1 CONTRACT LABOUR RULES

In respect of all labour directly or indirectly employed on the works by the
CONTRACTOR, the CONTRACTOR shall comply with and implement all the provisions
of the Contract labour (Regulation and Abolition) Act 1970, or any amendment
thereof, and all legislation and rules of the State and/or Central Government or other
local authority formed from time to time governing the protection of health, sanitary
arrangements, wages, welfare and safety of labour employed on the works and the
CONTRACTOR shall be deemed to be the Employer for this purpose. The rules and
other statutory obligations with regard to fair wages, welfare and safety measures,
maintenance of register etc. will be deemed to be part of the Contract.
The CONTRACTOR shall have a valid labour license and shall also maintain all records/
register/return/cards under Orisssa contract Labour (R&A) Rules Act, such as

i. Register of workmen employed by CONTRACTOR (Form 9)
ii. Employment card ( Form 10)
iii. Muster Roll - Form 12
iv. Register of wages-cum muster roll - form 13
v. Wage slip - Form 15
vi. Register of overtime - Form 19
vii. Submission of Return in Form 20

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
30.2 CONTRACTOR SHALL ALSO STRICTLY ADHERE TO ALL PROVISION OF THE
FOLLOWING ACT :

MINIMUM WAGES ACT 1948 AND PAYMENT OF WAGES ACT 1936
STATE GOVERNMENTS MINIMUM WAGE FIXATION ACT 1962
PROVISION OF WORKMEN'S COMPENSATION ACT 1923
APPRENTICS ACT 1961
HEALTH, SAFETY, WELFARE OF LABOUR

30.3 REPORTING OF ACCIDENTS TO LABOUR

The CONTRACTOR shall be responsible for the safety of all workmen and employees
engaged by him or by his sub-CONTRACTORs in connection with the contract work. All
accidents at site are to be immediately reported to the required authorities.
CONTRACTOR shall utilize the proforma provided under "Safety code for
CONTRACTORs Annexed to this work order. The CONTRACTOR shall be responsible for
all such accidents and shall make arrangements to render all possible assistance and
aid to the victims of the accident.

30.4 LABOUR RETURNS

The CONTRACTOR shall obtain labour licence from concerned authority and shall
submit periodical (daily/monthly/half-yearly) statements of labour employed by him in
the proforma prescribed by MECON/RSP concerned labour authorities.

30.5 LABOUR CAMPS

The CONTRACTOR shall, at its own expense, make adequate arrangements for
housing, electricity, road, supply of drinking water and provision of lavatories and
urinals for its staff and labour, disposal of sewerage and sludge and for temporary
crche (bal mandir) where 50 or more women are employed at a time.

30.6 PRESERVATION OF PEACE

The CONTRACTOR shall take adequate precautions and use his best endeavor to prevent
any riotous or unlawful behavior by or amongst his workmen and/or others employed on
the works by him and for the preservation of peace, protection of the inhabitants &
security of the property at or in the neighborhood of the works/site.

30.7 PAYMENT OF WAGES

30.7.1 The CONTRACTOR shall make regular and prompt payment of wages to the labourers
engaged in the work and in no case shall the payment be delayed more than seven
days following the period for which the wages are due. The CONTRACTOR shall send a
certificate to MECON to this effect every month. If it is found that workers are not paid
regularly, the order is liable to be terminated.
30.7.2 In case the CONTRACTOR fails to make payment of wages within the prescribed period
or make short payment, then MECON shall be liable to make payment of wages in full or
the unpaid balance due, as the case may be, to the contract labour employed by the
CONTRACTOR and recover the amount so paid from the CONTRACTOR under any order
or as a debt payable by the CONTRACTOR.
RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
30.7.3 As a number of CONTRACTORs may be working at the same time in the erection of
different part of the Project, there is need for pursuance of a coordinated policy in regard
to employment, wages and other conditions of work. The CONTRACTOR shall consult
MECON on all such matters to arrive at mutually agreed settlements.
30.8 CONDITION OF SERVICE OF EMPLOYEES OF CONTRACTOR/SUB CONTRACTOR

30.8.1 The CONTRACTOR/sub-CONTRACTOR shall abide by the provisions of Orissa Contract
Labour (R&A) Rules regarding condition of service.

30.8.2 No female shall be allowed to work between 6 PM and 6 AM.

30.8.3 SANITARY ARRANGEMENTS

The CONTRACTOR shall comply with all sanitary rules in force and carry out all sanitary
measures and permit inspection of all sanitary arrangements at all reasonable times by
MECON.

30.8.4 INFECTIOUS DISEASES
The CONTRACTOR shall employ such persons as are found to be free of contagious
diseases and shall produce, if required by MECON, certificate of fitness of all his or his
sub- CONTRACTORs employees working at site. The CONTRACTOR shall, if required by
MECON, subject all his employees to regular medical check up and produce
satisfactory evidence of their being free from any contagious disease.
30.8.5 MEDICAL FACILITIES AT SITE

The CONTRACTOR shall provide medical facilities at the site as per rules in force in
relation to the strength of the CONTRACTORs staff and workmen deployed at site and
cover his employee under ESI.

30.8.6 AGE LIMITS OF LABOUR

No child/adolescent shall be allowed to work in RSP's premises including the offices and
canteen. The CONTRACTOR shall not employ for the purpose of the work, any person
below the age of 15 years. MECON / RSP shall have the right to refuse to allow any
labourer whom he considers to be underage to be employed by the CONTRACTOR.

30.9 EMPLOYEE'S PROVDENT FUND

30.9.1 The CONTRACTOR shall be solely responsible for deduction and contributions under
the Employees' Provident Fund and Family Pension Act, 1952 and the scheme made
there under as amended from time to time. He shall be solely responsible for the
maintenance of records for payment of contributions and submission of returns in
accordance with the said act and scheme.
30.9.2 In case the CONTRACTOR fails to make payments under the above act and the scheme
made hereunder and as amended from time to time, MECON reserves the right to make
such payment on behalf of the CONTRACTOR, on demand from the authorities under the
Act and recover the same from the payments due to the CONTRACTOR. Further, the
CONTRACTOR shall indemnify and keep indemnified MECON/RSP against any loss or
damage whatsoever that may be suffered by MECON/ RSP as a result of any claims,
damages, penalties for any failure, non- compliance on his part with the provisions of
the aforesaid act and the scheme framed there under.
RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
30.9.3 The CONTRACTOR has to provide provident Fund Registration Number to MECON
within 30 days of the issue of order.

30.10 WORK AT NIGHT AND ON HOLIDAYS

As and when MECON considers it necessary to carry out work on extended hours /
three shift basis or on Public Holidays so as to meet the completion schedule and
request the CONTRACTOR to carry out work as per the said requirement, the
CONTRACTOR shall carry out the work accordingly to meet the Completion period.
Charges for such deployment of labour is included in the contract price.

No additional payment or overtime charges for deployment of labour & supervisory
personnel to suit MECONs requirement for expediting the erection, testing &
commissioning shall be payable to the CONTRACTOR including holidays.

30.11 IDLE LABOUR

CONTRACTOR shall engage sufficient & proper nos. of Workmen / Supervisor etc. for
successful & timely completion of work. No Idle labour charges whatsoever shall be
paid by MECON in case labour remain idle for some period during performance of
order.

31.0 HEALTH, SAFETY, WELFARE OF EMPLOYEES OF CONTRACTOR/
SUB-CONTRACTOR.

31.1 HEALTH
The CONTRACTOR/sub-CONTRACTOR shall ensure that only those persons who are
physically fit for doing the job are engaged. The CONTRACTOR/sub-CONTRACTOR shall
take care of health requirements of employees under them in terms of Factories Act
1948, Mines Act 1952, Workmen's compensation Act 1923, contract Labour
(Regulation & Abolition Act) 1970 and rules of Orissa Contract Labour (R & A) Act etc.
regarding health, safety & welfare.
It is the responsibility of the CONTRACTOR/ sub-CONTRACTOR to ensure proper
coverage by an appropriate insurance policy to take care of the eventualities.

31.2 WELFARE

31.2.1 The CONTRACTOR/sub-CONTRACTOR shall comply with all the provisions regarding
welfare of the employees under the provisions of Factories Act 1948, Contract Labour
(Regulation and Abolition) Act 1970 etc. as amended from time to time and also keep
relevant records, data in the Register prescribed and shall submit the same during
periodic inspection by MECON/ RSP.

31.2.2 The CONTRACTOR/sub-CONTRACTOR shall ensure that only the qualified, experienced
and Licenced personnel are employed by them for operating the motor vehicles,
dumpers, Dozers and other earthmoving equipment, construction & operation of
electrical installations, high pressure welding, etc. The CONTRACTOR/
sub-CONTRACTOR shall ensure that the necessary Licence/renewals of Licences are
kept up-to-date and in proper order at their own cost.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
32.0 SAFETY AND SECURITY
32.1 The CONTRACTOR shall take all safety measures that are required by MECON/RSP.
Such measures shall include, but not limited to, precautionary fire/gas protection
measures and accident prevention programmes.
32.2 The CONTRACTOR shall adopt adequate safety measure and use of protective clothing
by all the workmen at site whether or not engaged in actual execution of work or
supervision thereof as per requirement. The CONTRACTOR shall ensure that the
workmen on site use safety belts, gloves, helmets, masks etc. as are necessary for their
safety.
32.3 The CONTRACTOR shall be responsible for safety arrangements of all equipment used in
connection with the execution of the work and shall ensure employment of only trained
operators to man the equipment. Only tested equipment, tools, wires, ropes, etc. shall
be used and shall periodically be tested to the satisfaction of MECON/ RSP. All test
certificate shall be made available to MECON/ RSP at site as and when required.
32.4 The CONTRACTOR shall, in connection with the execution of the work, ensure provision
and maintenance at his own cost all lights, guards, fencing with gates and watch & ward
when and where necessary or required by MECON/RSP or by any duly constituted
authority for the protection of work and/or for the safety and convenience of the public
or others.
32.5 The CONTRACTOR shall take adequate safety precautions for prevention of accidents at
site. The CONTRACTOR shall also ensure that their employees/ workmen observe the
statutory safety rules and regulations as also those laid down by MECON/ RSP from time
to time.
32.6 The CONTRACTOR shall provide at his cost necessary watch and ward force and
adequate illumination as may be approved by MECON/RSP to ensure security and safety
of all buildings/ structures/ equipment and materials under their custody at the site of
work.
32.7 The CONTRACTOR shall comply with the Site regulations, during the execution of the
Contract at the Site, as given in the document of "Safety Code for the CONTRACTORs
The CONTRACTOR shall provide identity badges to their personnel and workmen duly
authenticated by RSP/ MECON which must be properly displayed by them at site.
32.8 In order to facilitate issue of exit gate permits by MECON/ RSP for materials and
equipment either during execution or the maintenance period, the CONTRACTOR shall
submit to MECON, the list of construction / erection equipment etc. and / or other
materials that shall be taken by them inside the site from time to time. Such movement
of materials, equipment, tools, tackles, etc. shall be subject to certification by MECON/
RSP.
33.0 LOSS OF OR DAMAGE TO PROPERTY; ACCIDENT OR INJURY TO WORKERS;
INDEMNIFICATION

33.1 Subject to the Sub-Clause below, the CONTRACTOR shall indemnify and hold harmless
MECON/RSP and its employees from and against any and all suits, actions or
administrative proceedings, claims, demands, losses, damages, costs and expenses of
whatsoever nature, including attorneys fees and expenses, in respect of the death or
injury of any person or loss of or damage to any property (other than the Facilities
whether accepted or not), arising in connection with the supply and installation of the
Facilities and by reason of the negligence of the CONTRACTOR or its Sub
CONTRACTORs, or their employees, or agents, except any injury, death or property
damage caused by the negligence of RSP, its employees, or agents.
RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
33.2 If any proceedings are brought or any claim is made against MECON/RSP that might
subject the CONTRACTOR to liability under the above Clause hereof, MECON/RSP
shall promptly give the CONTRACTOR a notice thereof and the CONTRACTOR may at
its own expense and in MECON/RSPs name conduct such proceedings or claim and
any negotiations for the settlement of any such proceedings or claim.
If the CONTRACTOR fails to notify MECON/RSP within twenty-eight (28) days after
receipt of such notice that it intends to conduct any such proceedings or claim, then
MECON/RSP shall be free to conduct the same on its own behalf at the risk & Cost of
the CONTRACTOR.

MECON/RSP shall, at the CONTRACTORs request, afford all available assistance to the
CONTRACTOR in conducting such proceedings or claim, and shall be reimbursed by the
CONTRACTOR for all expenses incurred in so doing.

34.0 INSURANCE

AUTOMOBILE LIABILITY INSURANCE:

Covering use of vehicles / mobile equipment used by the CONTRACTOR or its Sub-
CONTRACTORs (whether or not owned by them) in connection with the execution of
the Order.

34.1 CONTRACTOR shall ensure that where applicable, contractor and its Sub-
CONTRACTOR(s) take out and maintain in effect adequate/suitable insurance policies
for their personnel, vehicles and construction equipment deployed for work executed
by them under the order.

34.2 MECON reserves the right to take out whatever policy that is deemed necessary by
him if the CONTRACTOR fails to keep the said policy alive and valid at all times and /
or causes lapses in payment of premium thereby jeopardising the said policy. The cost
of such policy(s) shall be recovered / deducted from the amount payable to the
CONTRACTOR.

34.3 The CONTRACTOR shall also fulfill the following necessary requirements :

34.3.1 Adequate fire-fighting equipment and extinguishing agents of sufficient capacity and
quantity must always be available at site and kept ready for immediate use.
34.3.2 Sufficient number of workmen must be fully trained in the use of such equipment and
must be available for immediate intervention at all times.
34.3.3 For storage of materials and equipment for the construction and erection work, storage
must be subdivided into storage units and the distance between such storage units
shall be as acceptable to the Insurance Company. All inflammable materials and
especially all inflammable liquids and gases must be stored at a sufficient large
distance from the property under construction or erection and from any hot work.
34.3.4 Welding, soldering or the use of an open flame in the vicinity of combustible material
is only permitted if at least one workman suitably equipped with extinguishers and
well trained in fire-fighting is present.
RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
35.0 FACILITIES TO BE PROVIDED BY RSP / MECON

MECON shall provide to the CONTRACTOR the construction drawings, Sketches,
instructions for execution of work.
35.1 CONSTRUCTION WATER

35.1.1 Construction & Drinking water shall be supplied free of cost by RSP to the
CONTRACTOR at a single point within a distance of 300 m from the battery limit. The
CONTRACTOR shall make its own arrangements to lay and maintain necessary
distribution lines, valves, etc., from this point at its own cost.

35.1.2 The CONTRACTOR shall be responsible to store water in sufficient quantities to meet
its requirements for at least 2 days in well built water storage tanks with covered tops
to prevent entry of foreign matter. Quantum of supply will depend on availability and
no claim for shortfall shall be allowed by RSP

35.1.3 The CONTRACTOR shall ensure that there is no wastage of water. The CONTRACTOR
will also be responsible for maintaining the taps, pipe lines, etc., in proper condition.
The CONTRACTOR shall obtain prior approval of RSP of CONTRACTORs distribution
scheme before laying the pipelines.

36.0 CONSTRUCTION POWER

36.1.1 RSP/MECON will supply 415V, 3-Phase four wire AC power in bulk at one point within
300 meters of battery limit, for construction & erection free of charge. The
CONTRACTOR shall make its own arrangements to lay and maintain necessary
distribution lines and wiring at its own cost. Electrical power for fabrication work, if
any, envisaged at site shall be supplied, metered and charged at the rate prevailing
from time to time.

36.1.2 The CONTRACTOR shall ensure that the electrical equipment employed by the
CONTRACTOR will be such that the aggregate power factor does not fall below 0.8 at
RSPs terminal point.

36.1.3 The CONTRACTOR shall obtain MECON/RSPs prior approval of the locations of
CONTRACTORs fixed construction machinery and the points for tapping of electric
supply, laying of distribution lines and wiring.

36.1.4 The CONTRACTOR will supply and install switches, fuse units of suitable rated capacity
separately for power and lighting on a frame preferably of steel and provide rainwater
protection cover on the switches. The CONTRACTOR will supply and install all
distribution cables, wires and switches, etc., of rated capacity for the work starting
from the source of power at its own cost. The installation will be made as per relevant
rules and site locations which are to be finalised in consultation with RSP.

36.1.5 Display of danger board signs in Hindi and English languages near switches is to be
ensured by the CONTRACTOR.

36.1.6 The electrical installations for construction power shall conform to Indian Electricity
Rules. The CONTRACTOR will get its installation inspected by the Assistant Electrical
Engineer of State Government and obtain a certificate for energisation of the
installation.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
36.1.7 The CONTRACTOR will employ Electricians having valid Electrical Licence for carrying
out the installations as well as for maintenance.

36.1.8 The CONTRACTOR will provide proper facilities to MECON/RSP or their authorised
representative for inspecting his temporary electrical installation as and when
required. The CONTRACTOR will immediately attend to the defects so pointed out
during this inspection including replacement of faulty cables, switches etc.
36.1.9 The CONTRACTOR shall not effect any change in the temporary installation unless
permission is obtained from RSP/MECON or their authorised representative.

36.1.10 The CONTRACTOR shall be responsible for all damages, losses, etc., due to fire or
otherwise if it is due to the CONTRACTORs negligence, improper installation, operation
and / or maintenance of CONTRACTORs part of installations.

34.1.11 The Contractor shall be provided space near the project site for construction of
storage, both open and covered, for unloading of the equipment and storage prior to
their erection. The contractor shall make all necessary arrange for unloading of the
material at the stores and subsequent loading and transport to the erection site in
course of the erection work.

37.0 FORCE MAJEURE

37.1 "Force Majeure shall mean any event beyond the control of the MECON or of the
CONTRACTOR, as the case may be, and which is unavoidable notwithstanding the
reasonable care of the party affected, and shall include, without limitation, the
following:

a) war, hostilities or warlike operations (whether a state of war be declared or not),
invasion, act of foreign enemy and civil war.
b) rebellion, revolution, insurrection, mutiny, usurpation of civil or military
government, conspiracy, riot, civil commotion and terrorist acts.
c) strike, sabotage, unlawful lockout, epidemics, quarantine and plague.
d) earthquake, fire, flood or cyclone, or other natural or physical disaster.

37.2 If either party is prevented, hindered or delayed from or in performing any of its
obligations under the order by an event of Force Majeure, then it shall notify the other
in writing of the occurrence of such event and the circumstances thereof within 14
days after the occurrence of such event.

37.3 The party who has given such notice shall be excused from the performance or
punctual performance of its obligations under the order for so long as the relevant
event of Force Majeure continues and to the extent that such partys performance is
prevented, hindered or delayed, the Time for Completion shall be extended.

37.4 The party or parties affected by the event of Force Majeure shall use reasonable
efforts to mitigate the effect thereof upon its or their performance of the order and to
fulfil its or their obligations under the order, but without prejudice to either partys
right to terminate the order.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
37.5 Any delay or non-performance by either party hereto caused by the occurrence of any
event of Force Majeure shall not

a) constitute a default or breach of the order
b) give rise to any claim for damages or additional cost or expense occasioned
thereby
if and to the extent that such delay or non-performance is caused by the occurrence of
an event of Force Majeure.

37.6 If the performance of the order is substantially prevented, hindered or delayed for a
period of more than ninety (90) days on account of Force Majeure during the currency
of the order, the parties will develop a mutually satisfactory solution.

38.0 ARBITRATION

38.1 Any disputes, differences, whatsoever, arising between the parties out of or relating to
the construction, meaning, scope, operation or effect of this Order shall be settled
between MECON and the Contractor amicably. If however, the Purchaser and the
Contractor are not able to resolve their disputes / differences amicably as aforesaid
the said disputes / differences shall be settled by Arbitration in accordance with the
Rules of Arbitration and the award made in pursuance thereof shall be binding on the
parties.
The arbitration shall be governed and regulated in all respect according to Laws of
India.
The Arbitration proceedings in case of other Indian companies shall be regulated and
governed by Indian Arbitration and Conciliation Act 1996, or such modification
thereof.

38.2 The venue of arbitration proceeding shall be Ranchi.
38.3 Work under this Order shall be continued by the Contractor during the arbitration
proceedings, unless otherwise directed in writing by MECON or unless matter is such
that the work cannot possibly be continued until the decision of the arbitrator is
obtained.

39.0 CORRUPTION, GIFT AND PAYMENT OF COMMISSION

Any bribe, remuneration, commission, gift or advantage given, promised or offered by
or on behalf of the CONTRACTOR, his agents or representative or anyone on his or
their behalf to any employee, representative or agent of MECON/RSP or any person on
his behalf in relation to the execution of this or any other order with MECON shall in
addition to the criminal liability under the laws in force, be liable to cause of
cancellation of this order and also to payment of any loss resulting from such
cancellation to MECON. Integrity pact signed by the Contactor with MECON is
enclosed.

40.0 WAIVER

Failure of MECON or the CONTRACTOR to insist upon performance of any terms and
conditions of this Contract will not be deemed a waiver of any rights or remedies that
MECON or the Order may have and will not be deemed a waiver of the subsequent
default under the terms and conditions of the order. No right or remedy of MECON or
the Order will be exclusive of any other right or remedy and MECON and the Order will
have all rights and remedies given under the order now or hereafter existing in-law or
by statute.
RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
41.0 GOVERNING LAW

This order including the Arbitration proceeding shall be governed by and interpreted in
accordance with the laws of India and shall be subject to the exclusive jurisdiction of
the courts of Ranchi.

42.0 SITE OCCUPANCY

The CONTRACTOR, its employees, Sub-CONTRACTORs and invitees shall be admitted to
the installation sites for the purpose of performing the work required by this order, but
none of them shall have any tenancy.

43.0 DRAWING & DOCUMENTS

All drawing specifications, sketches, schedule of items etc. furnished by MECON is
treated as strictly confidential property of MECON.

The CONTRACTOR himself shall not make any changes in the drawings/sketches,
specifications and schedule of items issued by MECON for executing the contract work.
If any error or omission is detected, he shall promptly bring the same to the notice of
MECON for clarification/ decision/ rectification. All modifications shall be subject to the
written approval of MECON.

44.0 SECRECY/ CONFIDENTIALITY

The technical information, drawings, specifications and other related documents
forming part of tender or contract are the property of MECON and shall not be used for
any other purposes, except for execution of the order. All rights, including rights in the
event of grant of patent and registration of designs are reserved. The technical
information drawings, specification, records and other documents shall not be copied
transcribed, traced or reproduced in any other form or otherwise in whole and/or
duplicated, modified, divulged and/or disclosed to a third party nor misused in any
other form whatsoever without MECON consent in writing except to the extent required
for the execution of this order. These technical information, drawings, specifications
and other related documents shall be returned to MECON with all approved copies and
duplicates, if any, immediately after they have been used for the agreed purpose.
Required numbering and codification method need to be implemented by the
CONTRACTOR to trace such documentation.

Except with the written consent of MECON the CONTRACTOR shall not make use of any
document other than for the purposes of this order.

45.0 GENERAL

No Director or official or employee of MECON shall in anyway be personally bound or
liable for acts or obligations of MECON under the order or answerable for any default or
omission in the observance or performance of any of the acts, matters or things or
conditions which are herein contained.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
46.0 CORRESPONDENCE

All correspondences with regard to Commercial matters shall be made in duplicate to
the following address :-

Jt. General Manager (Contracts)
Attn. Shri. A.K Sinha, DGM (Contracts)
MECON LIMITED, Ranchi - 834 002
With a copy to :

Jt. General Manager,
MECON LIMITED, Rourkela
All correspondences with regard to Technical matters shall be made in duplicate to

the following address :-

Jt. General Manager,
MECON LIMITED, Rourkela

With a copy to :

Shri S.P Mishra DGM (C2)
MECON LIMITED, Ranchi - 834 002

Kindly acknowledge receipt of this Work Order and return enclosed "Order Acknowledgment"
copy within 15 days duly signed on each page as a token of your acceptance of this Work
Order with the terms and conditions stipulated therein.

Thanking You,
Yours faithfully,
for MECON LIMITED
Encl :
Annexure I Jt. General Manager (CONTRACTS)
Annexure II

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
ATTACHMENT-III

SUMMARY OF TENDER

MECONs ITT No. & Date : ____________________________________________
Tenderers Offer No. & Date : ____________________________________________

This questionnaire duly filled in should be returned along with each copy of Part-I of
offer. Clauses confirmed hereunder should not be repealed in the offer. All the
commercial terms and conditions should be indicated in this format only. It may be
noted that terms and conditions indicated elsewhere shall be ignored.

The Tenderer shall fill up the answers to the following questions. The answers are to be given
only as "CONFIRMED" or "AGREED". Deviations ìtems on the clauses listed below shall be
indicated separately at Attachment-III (A).

Sl.
No.

Q u e s t i o n Answer
1. Tender submitted for complete scope as per
Technical specification (Attachment I)

2. Prices quoted are as per terms of payment of
Invitation to Tender/ Draft Work Order.

3. Quoted prices shall remain firm & binding till
completion of the Order.

4. Quoted Price is inclusive of all incidental charges
and all taxes including service tax & sales tax on
works contract.
The quantum of service tax & sales tax on works
contract are indicated separately

5. Offer is inclusive of Insurance charges for
construction equipment, tools & tackles,
Workman compensation, Motor Vehicle Insurance
etc.

6. Bank Guarantee (B.G.)/Bank Draft for Earnest
Money is enclosed.
i) No. and date of B.G./Draft
ii) Name of Bank
iii) B.G. valid upto

7. Cost of tender document as per ITT is submitted
alongwith offer.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.

Sl.
No.

8. Security Deposit clause of ITT/Draft Work Order
is acceptable.

9. Guarantee and Warranty clause of Draft Work
Order is acceptable.

10. "Liquidated Damages" clause of Draft Work Order
is acceptable.

11. Completion schedule as per ITT/ Draft Work Order
acceptable. Unless otherwise specified, the
completion schedule shall be reckoned from date
of LOI/Fax order.

12. Offer is valid for 3 (three) months from the due
date of submission of offer.

13. Authority letter from Secretary of Company (in
case of company) indicating that the signatory to
the Tender is authorised for signing, is submitted.

14. Sales Tax Clearance Certificate enclosed.
Contractor is registered under Orissa sales tax
Act. (Reg. no. is to be indicated)

15. All other terms and conditions shall be as per
Draft Work Order and other documents attached
with ITT.

16. All the terms and conditions have been indicated
in this format and have not been repeated in the
offer elsewhere.

17. Confirm that reimbursement /payment of
statutory variation in taxes shall be limited to
contractual completion period or actual
completion, whichever is earlier

18. Confirm that in case of delay on account of
tenderer, any new or additional taxes/ levies
imposed after contractual completion period shall
be to the tenderers account.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.

Sl.
No.

19. Confirm acceptance of Part order as per ITT

20. Confirm that printed terms & conditions, if
any, of the tenders offer are not applicable
and shall be treated as withdrawn.

SIGNATUE OF THE TENDERER

NAME:

DESIGNATION:

(Seal of the Company)

Address:

Phone No.:
Mobile no.
Fax No.
E-mail

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
ATTACHMENT - III (A)

DEVIATIONS-TECHNICAL SPECIFICATION

Tender Enquiry No. .................. Dtd. ........

Package no. ..............................

Project : 7 m tall Coke OvenBattery no. 6, RSP, Rourkela

1. Any deviation indicated at any other place in the submitted bid may be ignored
2. All documents as required are signed and stamped without marking any deviation
3. The deviations sought (if any) are indicated at only one place and are as follows:

Sl. No. T.S. Clause No. Sub title Deviation
a.
b.
c.
.
.
.
.
.

SIGNATURE OF THE TENDERER

NAME :

DESIGNATION :


Deviation: Page...of..
RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
ATTACHMENT - III (B)

DEVIATIONS-COMMERCIAL TERMS & CONDITION

Tender Enquiry No. ...................... Dtd. .......

Package no. ..................................


1) Any deviation indicated at any other place in the submitted bid may be ignored
2) All documents as required are signed and stamped without marking any deviation
3) The deviations sought (if any) are indicated at only one place and are as follows:

Sl.No. ITT / Draft
Purchase Order/
Attachment
Clause No.
Sub title Deviation

a.
b.
c.
.
.
.
.
.


NAME :

DESIGNATION :


Deviation: Page...of.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
ATTACHMENT - IV

FINANCIAL QUESTIONNAIRE

1. Annual Accounts for the last 3 years to check up.

i) Authorised capital

ii) Paid up capital:

Dependence on owners capital vis-s-vis outsiders capital.
(Debenrures, Public Deposit and Bank overdraft).

iii) Reserves & Surpluses.

iv) Fixed Assets.

v) Current Assets, loans and advances.

vi) Current liabilities and trade dues.

2. Financial Position :-

i) Working capital (Difference between current assets and current liabilities).

ii) Capital Employed - net fixed assets plus working capital.

iii) Net worth - paid up capital plus reserves.

3. Liquidity and solvency :-

i) Percentage of current assets to total net assets.

ii) Percentage of current assets to current liabilities.

iii) Percentage of quick assets (Sundry debtors, loans and advances, cash and
bank balances ) to current liabilities.

4. Working results i.e. net profit before tax and after tax for the last three years.

5. Volume of business : turn over and cost of production.

6. Sundry debtors during last three years.

7. Percentage of total debts to turn over.

8. Provision for contingent liabilities, if any

9. Cash margin - net profit after tax plus depreciation.

10. Value of inventory.
RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.

11. The value of the single major order executed and time taken for its completion during
the past 5 years.

12. Orders in hand at present - Nos. of major orders. Value and date of delivery, name of
the customer against each.

13. External source of fund as a percentage of total sources of funds during last three
years.

14. Increase in borrowing from Government/others as percentage of external sources.

15. Debt equity - ratio between total debts and equity shares.

16. Total B.G. provision available and the B.G. margin available at present along with
relevant details.

17. L.C., if opened, for any imports and the L.C. margin available as on date.

18. Cash credit arrangements, if any, along with necessary details.

19. Indicate whether you are registered with DGS & D/ DGTD with documentary evidence.


NAME :

DESIGNATION :


RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.

ATTACHMENT - VI

DECLARATION BY TENDERER
(To be furnished on letter head)

We hereby declare that our organisation M/s ________________________________
have not been banned or delisted by any Government or Quasi Government agencies or
Public Sector Undertakings.

Signature of the Tenderer
Name :
Designation :

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.

ATTACHMENT - VII

BANK GUARANTEE IN LIEU OF EARNEST MONEY DEPOSIT
(To be submitted in Rs. 50/- non-judicial stamp paper. Stamp paper to be purchased
in the name of the issuing bank. Validity of the BG shall be 4 months.)

No. ..................... Date : .............

MECON Limited
Ranchi - 834 002

WHEREAS ........................... (Tenderers Name) (hereinafter referred to as "Tenderer), a
Company registered under the Companies Act, 1956 and having its registered office at
.............. is required to deposit to MECON, the Purchaser, by way of Earnest Money, Rs.
............ (Rupees ..................... only) in connection with its Tender for the work
with reference to Tender Enquiry No. ......... dated ........ as per specification and terms and
conditions enclosed therein

AND,

WHEREAS the Tenderer as per Clause No. ........ of Instructions to Bid (ITT) has agreed to
establish a Bank Guarantee in MECONs favour through us (Bank) valid upto .......... (date)
instead of deposit of Earnest Money in cash AND,

WHEREAS MECON have agreed to accept a Bank Guarantee from us in lieu of Earnest Money
Deposit in cash from the Tenderer.

1. We, .................. (Bank) hereby agree and undertake to pay MECON on demand the
said amount of Rs. ....................... (Rupees .................................. only) without
any protest or demur in the event the Tenderer/ Tenderer after submission of his
Tender, resiles from or withdraws his offer or modifies the terms and conditions
thereof in manner not acceptable to MECON or expresses his unwillingness to accept
the order placed and/ or Letter of Intent issued by MECON on the Tenderer/ Tenderer
for the work under Tender Enquiry No. .................. dated ................ .

2. MECONs decision as to whether the Tenderer/ Tenderer has resiled from or has
withdraw his offer or has modified the terms and conditions thereof in manner not
acceptable to MECON or has expressed his unwillingness to accept the order placed
and/or Letter of Intent issued by MECON on the Tenderer/ Tenderer for the work under
Enquiry No. .............. dated ................., shall be final and binding on us and we
shall not be entitled to question the same.

3. Notwithstanding anything contained in the foregoing, our liability under this Guarantee
shall be restricted to Rs. .................... (Rupees ............................ only)

4. This Guarantee shall remain valid and in full force and effect upto ......... (date) and
shall expire thereafter unless an intimation is given to the Bank by MECON earlier in
writing discharging us from our obligation under this Guarantee.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
5. We shall not revoke this Guarantee during its currency except by MECONs consent in
writing.

6. This Guarantee shall not be affected by any change in the constitution of the Tenderer/
Tenderer or MECON or ourselves but shall ensure to MECONs benefit and be
enforceable against our legal successors or assignees by MECON or MECONs legal
successors.

7. Notwithstanding any thing contained hereinabove unless a demand or claim under this
Guarantee is made on us in writing within six months from the date of expiry of this
Guarantee we shall be discharged from all liabilities under this Guarantee thereafter.

8. We have power to issue this Guarantee under our Memorandum and Articles of
Association and the undersigned, who is executing this Guarantee has the necessary
power to do so under a duly executed Power of Attorney granted to him by the Bank.

SIGNED AND DELIVERED
for and on behalf of above named Bank
For and on behalf of
(Bankers Name)

Address ......................................
......................................

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
WITH IMMEDIATE EFFECT

(To be submitted on Non-Judicial Stamp Paper worth Rs. 10/- purchased in the name of
issuing Bank)

MECON's ITT No. & Date : __________________________________________
Tenderer's Offer No. & Date :____________________________________________

BANK GUARANTEE FOR SECURITY DEPOSIT CUM PERFORMANCE WARRANTY

i) Name of the Issuing Bank

ii) Address with FAX No.

iii) Bank Guarantee No.

iv) Limit of liability

v) Issued on behalf of

vi) Issued in favour of

vii) Contract/Order No. & Date

viii) Description of work

ix) Date of issue

x) Date of Expiry

xi) Claim period from the date of expiry

This top sheet shall form part of the original bank guarantee.

Authorised signature with Code No.
And stamp of the issuing bank
RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
PROFORMA OF BANK GUARANTEE FOR SECURITY DEPOSIT CUM PERFORMANCE
GUARANTEE
(To be submitted on Non-Judicial Stamp Paper worth Rs. 100/- purchased in the name of
issuing Bank)

MECON's ITT No. & Date : __________________________________________
Tenderer's Offer No. & Date : __________________________________________
Project : 7 m tall Coke Oven Battery no. 6, RSP, Rourkela

No... dated :

MECON Limited
Ranchi - 834 002
(Jharkhand)
INDIA

Dear Sirs,
In consideration of your agreeing to accept the Security Deposit of Rs. ........ (Rupees
............ only) furnishable to you by M/s ......................
(hereinafter referred to as Contractor) in terms of the Contract No. ......... dated
...... for supply/construction of ........... required for
................................... (hereinafter referred to as the
`Contract) in the form of a bank guarantee in the manner hereinafter contained we ....
Branch (Bankers Name) having registered office at ......., and local office at...... do
hereby covenant and agree with you as follows :

1. We hereby undertake to indemnify you up to a sum of Rs. .....
(Rupees..................... only) against any loss or damage caused to
or suffered by you or that may be caused to or suffered by you by reason of any
breach or breaches on the part of the Contractor of any of the terms of the terms and
conditions contained in the said Contract and in the event the Contractor shall make
any default or defaults in carrying out any of the works under the said contract or
otherwise in the observance and performance of any of the terms and conditions
relating thereto in accordance with the true intent and meaning thereof, we shall
forthwith on demand and without any protestor demur pay to you such sum or sums
not exceeding in total the said sum of Rs. ........ (Rupees
.............................. only) as may be claimed by you as
your losses and/or damages, costs, charges or expenses by reason of such default or
defaults on the part of the Contractor.

2. Notwithstanding anything to the contrary contained in this Guarantee your decision as
to whether the Contractor has made any such default or defaults and the amount or
amounts to which you are entitled by reasons thereof will be binding on us and we
shall not be entitled to ask you to establish your claim or claims or damages or losses
suffered by you but will pay the amount demanded by you under this guarantee
forthwith on your demand without any protest or demur.

3. This guarantee shall continue and hold good until it is released by you on the
application by the Contractor after expiry of the related warranty period of the said
Contract and after the Contractor have discharged all their obligations under the said
Contract and produced a certificate of due completion of the work under the said
Contract and submitted a `No Demand Certificate, provided always that this guarantee
RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
shall in no event remain in force after the date of ...... without prejudice to your
claim or claims arisen and demanded from or otherwise notified to us in writing before
the expiry of six months from the said date which will be enforceable against us
notwithstanding that the same is or are enforced after the said date.

4. We ....... (Name of the Bank), further undertake to extend the validity of this
beyond the period prescribed in clause 3 or as extended from time to time, for such
further period as may be required in writing before the expiry of this and upon such
extension(s), all terms and conditions of this shall remain in full force till the expiry of
this extended period(s).

5. You will have the fullest liberty without affecting this guarantee from time to time to
vary any of the terms and conditions of the said Contract or extend the time of
performance of the Contractor or to postpone for any time or from time to time any of
your rights or powers against the Contractor and either to enforce or forbear to enforce
any of the terms and conditions of the said Contract and we shall not be released from
our liability under this guarantee by the exercise of your liberty with reference to
matters aforesaid or by reason of any time being given to the Contractor or any other
forbearance, act or omission on your part or any indulgence by you to the Contractor
or by any other variation or modification of the said contract or any other act, matter
or things whatsoever, which, under the law relating to sureties, would but for the
provisions hereof, have the effect of so releasing us from our liability hereunder
provided always that nothing herein contained will enlarge our liability hereunder
beyond the limit of Rs......... (Rupees
................................. only) as aforesaid or extend the
period of the guarantee beyond the said date of ....... unless expressly agreed to
by us in writing in terms of clause 4 hereof.

6. This guarantee shall not in any way be affected by your taking or varying or giving up
any securities from the Contractor or any other person, firm or company on its behalf
or by the winding up, dissolution, insolvency or death as the case may be of the
Contractor.
7. In order to give full effect to the guarantee herein contained, you shall be entitled to
act as if we are your principal debtors in respect of all your claims against the
Contractor hereby guaranteed by us as aforesaid and we hereby expressly waive all
our rights of suretyship and other rights, if any, which are in any way inconsistent with
any of the provisions of this Guarantee.

8. Subject to the maximum limit of our liability as aforesaid, this guarantee will cover all
your claim or claims against the Contractor from time to time arising out of or in
relation to the said Contract and in respect of which your claim in writing is lodged on
us before expiry of six months from the date of expiry of this guarantee.

9. Any notice by way of demand or otherwise hereunder shall be in writing and may be
sent by special courier, telex or telefax to us or our local address as aforesaid and if
sent by post, it shall be deemed to have been given when the same has been posted.

10. This guarantee and the powers & provisions herein contained are in addition to and
not by way of limitation of or substitution for any other guarantee or guarantees
heretofore given to you by us (whether jointly with others or alone) and now existing
uncancelled and that this guarantee is not intended to and shall not revoke or limit
such guarantee or guarantees.
RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
11. This guarantee shall not be affected by any change in the constitution of the
Contractor or us nor shall it be affected by any change in your constitution or by any
amalgamation or absorption thereof or therewith but will ensure for the benefit of and
be available to and enforceable by the absorbing or amalgamated company or
concern.

12. This guarantee is irrevocable during the period of its currency and shall not be revoked
without your previous consent in writing.

13. We further agree and undertake to pay you the amount demanded by you in writing
irrespective of any dispute or controversy between you and the Contractor or any
reference to arbitration of the said dispute/ controversy pending or a civil suit filed by
the Contractor in respect of the dispute or controversy.

14. Notwithstanding anything contained herein above our liability under this guarantee is
restricted to ....... (.............................. only) and
this guarantee shall remain in force until ........ Unless a written claim is lodged on
us for payment under this guarantee within six months from the date of expiry of this
guarantee i.e. on or before ...... all your rights under this guarantee shall be
forfeited and we shall be deemed to have released and discharged from all liabilities
thereunder, irrespective of whether or not the original guarantee is returned to us.

15. We .............. Bank hereby further Guarantee that the design,
performance, workmanship and quality of materials and equipment delivered to you
and / or to ............ on your written instruction by the Contractor, in terms
of the said contract, shall be free from any defect for a period of ..........
Calendar from the final acceptance and performance / guarantee tests are over and we
hereby undertake to pay on demand without any protest or demur to the PURCHASER
the sum of Rs.......... if, during the guarantee period any defect is detected in
design, performance, workmanship and materials used in the manufacture of the said
equipment to indemnify you against the claim, demands, proceeding, losses, damages
costs, charges and expenses which may be made against or sustained by the
PURCHASER M/s .......... By reasons or the consequence of any defect in the
performance, workmanship and / or materials of the said equipment or part thereof
arising or manifested or found during the warranty period and if during the guarantee
period, any defect is detected in the design, performance, workmanship and material
used in the manufacture of the said equipment and the Contractor fails to rectify the
defects and/ or replace the equipment expeditiously without causing any loss of
production to the PURCHASER M/s .............. , we shall pay to you on
demand without any protest and demur such sum or sums as may be claimed by you
as your losses/ damages, costs charges and expenses consequent upon such failure of
the Contractor to rectify defects/ replace the equipment, not exceeding in the total the
said sum of Rs. ...... (Rupees ............... only).

16. We ................ Bank, further agree that you shall be the sole judge in
respect of discovery or detection of any defect in design, performance, workmanship
and materials used in the manufacture of the said equipment and your decision in
this regard shall be final and binding on us.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
17. We have power to issue this guarantee in your favour under the memorandum and
articles of association of the Bank and the undersigned has full power to execute this
guarantee under the power of attorney granted to them by the Bank.

Signed & delivered For and on behalf of
for and on behalf of (Bankers name)
the above named bank
Branch Manager
Bankers Seal)

Address :____________

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
ATTACHMENT - IX
PROFORMA FOR BAILMENT AGREEMENT

WHEREAS M/s Steel Authority of India Limited, registered under Indian Companies Act, 1956
which is a Govt. Company and having its registered office at Ispat Bhawan Lodi Road, New
Delhi, having one of its plants Rourkela Steel Plant at Rourkela - 769 001 (hereinafter called
"the Employer) which expression shall include the successors, assigns has placed order on
MECON Limited, Ranchi - 834002 vide Agreement no P/PROJ/740(1)/79401/08049099 dt.
06.08.2008 (hereinafter called "the Contractor) which expression shall include the
successors, assigns, for design engineering & supply of equipment, handling, storage,
erection and commissioning of installation of 7 m tall Coke Oven Battery No. 6 at Rourkela
Steel Plant, Rourkela, Orissa.

WHEREAS MECON, have submitted Custody -cum-Indemnity Bond to Rourkela Steel Plant,
vide letter dated ..... as per the agreement. SAIL, Rourkela Steel Plant is the owner of
the Project (BAILOR) and MECON is the BAILEE.

WHEREAS the BAILOR has assigned the job of safe custody and protection of the goods as
required for erection at the BAILORs Project site to MECON (BAILEE). Again whereas BAILEE
assigned the job to M/s _____________________ (hereinafter called the "SUB - BAILEE).

Now this agreement of Bailment made on this _______ day of ....... between MECON a
Company registered under the Indian Companies Act, 1956 which is a Government Company
and having their registered office at Doranda, Ranchi - 834002 (hereinafter called the BAILEE
which expression shall include their successors, assigns) and M/s
______________________________ having their registered office at ..... (hereinafter
referred to as SUB-BAILEE which expression shall include their successors, assigns,
administrator).

WHEREAS the BAILOR being the absolute owner of the goods requires the services of the
BAILEE for safe custody and protection of its goods before and during their erection and
commissioning at the BAILORs Project at Rourkela Steel Plant.

Now, therefore, it is hereby agreed by and between the BAILEE and SUB-BAILEE as follows:

1/ In consideration of the BAILEE placing the order No. 11.51. ______________ dated
________ on the SUB-BAILEE for ________________________________
_____________________________________________________________________
__ required for installation of 7 m tall Coke Oven Battery No. 6 of Rourkela Steel Plant,
of the goods handed over to the SUB-BAILEE, the SUB-BAILEE for this scope of work
shall keep safe custody of the goods that will be bailed to him by the BAILEE through
its authorized representative.

2/ SUB-BAILEE shall, upon taking possession, store the goods in the accommodation to
be provided by the BAILOR free of cost and use the goods for erection as per terms
and conditions of the above order.

3/ The SUB-BAILEE undertakes to take all reasonable care of the goods bailed to him in
all respects regarding the quality, quantity and value of the same.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
4/ The SUB-BAILEE is permitted to assign or sublet the whole or part of the jobs to one or
more contractors as per the terms of the agreement and such contractor or contractors
shall become SUB-BAILEE or SUB-BAILEES to the principal BAILOR, but the SUB-
BAILEE shall indemnify and keep indemnified the BAILEE/BAILOR against all actions,
expenses and liabilities whatsoever that may be sustained or incurred by the
BAILEE/BAILOR due to the actions of any or all SUB-BAILEES.

5/ The SUB-BAILEE shall deliver or put to use the goods according to the
directions/instructions given by the BAILEE/BAILOR and if the SUB-BAILEE makes any
use of the goods bailed which is not according to the conditions of the Bailment, the
SUB-BAILEE is liable to make compensation to the BAILEE/BAILOR for any damage
arising to the goods from or during such use of the goods.

6/ The SUB-BAILEE shall keep the goods bailed to him under this contract separately and
shall not mix the same with his goods and if the SUB-BAILEE without the consent of
the BAILEE/BAILOR mixes the goods of the BAILEE/BAILOR with his own goods, the
SUB-BAILEE shall bear the expenses of separation or division and any damage arising
from the mixture, and if it is impossible to separate the goods bailed from other goods
and deliver them back, the SUB-BAILEE shall compensate for the loss of the goods.

7/ The SUB-BAILEE shall not have any lien and shall not hold the property bailed in
respect of any amount that might become payable or due to it from the
BAILEE/BAILOR on any account.

8/ The SUB-BAILEE shall use the goods under instructions of the BAILEE/BAILOR for the
purpose of the construction of the installation of 7 m tall Coke Oven Battery No.6 of
Rourkela Steel Plant, Rourkela from time to time and shall not be entitled to any
separate remuneration for Bailment of the goods and bound by the terms of payment
as specified in the Order No. _____________________ dated __________
aforementioned.

9/ The SUB-BAILEE is bound to return the goods or utilize the goods or deliver the goods
according to the BAILEE / BAILORs directions for the purpose of which the goods have
been bailed, has been accomplished.

10/ If the SUB-BAILEE commits defaults in returning, delivery or tendering the goods at
the proper time and place according to the instructions of the BAILEE / BAILOR, the
SUB-BAILEE is responsible for any loss, destruction or deterioration of the goods from
that time and the SUB-BAILEE shall compensate it.

11/ If any time the BAILEE / BAILOR notices that the SUB-BAILEE is acting contravention
of the conditions of this Bailment, the BAILEE / BAILOR shall forthwith enter the
premises of the SUB-BAILEE through their representatives to take possession of the
goods bailed in their absolute discretion and the SUB-BAILEE shall indemnify and keep
indemnified the BAILOR against all actions, proceedings, claims, demands, losses,
damages, costs, charges, expenses and other liabilities whatsoever that may be
sustained or incurred by the BAILEE / BAILOR.

RANCHI 834002

MECON LIMITED
Phone : 0651 2480002/2480216
Fax : 0651 2482215/2482214

.
12/ The SUB-BAILEE shall not create any mortgage, charge lien or encumbrance affecting
the property bailed or any part thereof nor do or allow anything whereby the BAILEEs
/ BAILORs property is prejudicially affected or its rights impaired.

13/ This contract of Bailment is terminable at the option of the BAILEE / BAILOR if the
SUB-BAILEE does any act with regard to the goods bailed, inconsistent with the
conditions of this Bailment.

In witness whereof the parties herein above have executed these presents the day and year
first herein above written.

SUB-BAILEE BAILEE

Witness : Witness :

1/ ............ 1/ .........

2/ ............ 2/ .........

Mecon Limited: RANCHI - 834002

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