DH-Budenberg Instrumentation Pvt.

Ltd
299-300, 2nd Main Road, Nehru Nagar
DH- Budenberg Old Mahabalipuram Road
Chennai -600 096 (India)
The Pressure Reference Telephone
Facsimile
: 044 2454 0014
: 044 2454 1862
Mobile : (0) 9841006074
Residence telefax : 044 2255 4082
Email : dhbudenberg@vsnl.net
Website : www.dh-budenberg.com
Our Ref.: DHBI/HKP/BHEL(Hwr)/QAT120809
New Delhi Contacts
Dated: 2nd December,2009
Telefax : 011-27052766
Mobile : 09868852766
Bharat Heavy Electricals Limited
Email : dhbdelhi@vsnl.net
HEEP,Haridwar-249403
Ph- +911334281187,+911334281980
Kind Attn.: Miss Priyanka-
Assistant Engineer (Capital Purchase)
Dear Madam,
Your Ref.: (i)Tender enquiry no. C/6743/9/2022T for Pressure Gauge
(ii) Email, dated:01st December,2009
Our ref.: Our quotation No. DHBI/HKP/BHEL(Hwr)/QAT120809,dated 12th August,2009
With reference to your email dated 1st December,2009 , we are pleased to submit herewith our point
wise reply as below,
For Indigenous Supply:
BHEL ,Haridwar quaries Clarification of M/s.DH-Budenberg
Instrumentation Pvt.Ltd

1. Payment terms: Your Payment Terms : As already mentioned in our offer , the offered
payment terms is not Pressure gauges are to be imported by us from our fellow UK
acceptable.Please accept
80% against dispatch company and supplied in Indian Rupees . We not only have to pay
documents through bank them in advance before import , but also have to pay the
and balance 20% custom duty and other taxes in India before dispatching the
after receipt & order to BHEL and presenting the documents for payment.
acceptance of the
Whereas if BHEL opt for direct import , they have to pay the
equipment against
submission of a amount in advance by way TT/DD or LC and also have to pay the
performance bank custom duty while taking the delivery . Hence , while offering in
guarantee (PBG) of 10% Rupees terms , we are not only taking the entire responsibilities
of PO value on BHEL of importing the items , but also spending entire money without
prescribed format from
any consortium Bank of
any financial obligation to BHEL . Hence , it is not viable to for us
BHEL valid up to full hold back 20% of payment for further period until the
warranty/guarantee materials are received and accepted by BHEL. The best we can
period. agree for 90% payment against dispatch documents through bank
and balance 10% on the acceptance of the material at site .
Further , we are one of the regular supplier to BHEL for Project
procurements as well as for capital purchase requirements. In fact
we we have executed in the couple of capital procurement order
for other BHEL units where they have accepted 90% +10%
paymnmet terms . Copy of BHEL Jhansi and Trichy orders are
enclosed herewith for your reference. We once again request BHEL
Hardwar to accept the same payments terms in this instant also.

PBG : Considering our market reputation and product quality

we Part
request you to waive the PBG in this instant.
of the worldwide group of DH·Budenberg companies including
However , if
Desgranges et Huot and Budenberg Gauge Co Ltd.

and the logos are registered trademarks

Registered Office 2nd Floor, Catholic Centre, 108 Armenian Street, Chennai 600 001

2.Security
Deposit :Security deposit
is essentially required. so
please give acceptance
to submit security deposit
of 5% of PO value.
3. Late Delivery Penalty
@ 0.5% per week and
part thereof subject to a
maximum of 10% of PO
value will be charged in
case of late delivery.
4. Please extend your
offer validity up to
31.12.09
Page 2 of 5
it is absolutely essential for us to furnish the PBG , in lieu of PBG
we agree that let BHEL hold back our 10% balance payment
and release the same after the warranty period i.e. after 24
months from date of despatch of the order or 18months from
date of receipt whichever is earlier
Security Deposit (SD):DH-Budenberg Instrumentation Pvt. Ltd
Chennai is 100% subsidiary of DH-Budenberg Holding as of
Budenberg Gauge Co. Ltd and other group companies .We have
been supplying our pressure gauges, dial thermometers and
calibration products to various units of BHEL for past 30/40
years and we have always honour our commitment and have
successfully executed all the orders on us. We have never failed in
execution of any order not even once all these years. Further
Budenberg Gauge /DH-Budenberg have never furnished a
security deposit to any units of BHEL in past 40 years of
association with various units of BHEL against an order whether it
is on direct import or through Indian rupee payment.
Considering our market reputation and past supplies we request
you to waive the submission of the security deposit .
At the best BHEL can retain our EMD amount in lieu of
SD till we execute the order and release the same after
successful completion of the supply of the order .
LD : We confirm our acceptance of LD @ 0.5% per week to a max
of 10% of the undelivered portion of the order value for any delay
beyond 18 weeks Ex-Chennai from date of receipt of BHEL firm
order. The 18 weeks delivery is mainly on account of LD . However
we shall try to improve the delivery wherever possible .
Offer Validity :We hereby confirm the extension of our offer
validity till 31.12.2009
Page 3 of 5

For Import Supply :
BHEL ,Haridwar quaries
1. Payment terms: 100% payment is not
acceptable. Please accept 100% payment through terms are 100% payment through irrevocable
LC in which 80% against dispatch documents
through bank and balance 20% after receipt &
acceptance of the equipment against submission case we confirm our acceptance
of a performance bank guarantee (PBG) of 10%
of PO value on BHEL prescribed format from any (CAD) in this instant . However , BHEL to ensure
consortium Bank of BHEL valid up to full
warranty/guarantee period.
2. Security deposit is essentially required.so
please give acceptance to submit security deposit
of 5% of PO value.
3. PBG is essentially required.so please give
acceptance to submit PBG of 10% of PO value.
Page 4 of 5
Clarification of M/s.DH-Budenberg
Instrumentation Pvt.Ltd
Payment Terms : Our standard payment
letter of credit payable at sight . As a special
of 100%
payment through Cash Against Documents
that our payment is released immediately on
presentation of documents through our UK bank
to BHEL , banker in India without any lock-in
period .
Since the item involved are standard stand-alone
pressure gauges and doesn’t warrant any
installation and commissioning , we are unable to
hold back any payment and require 100% payment
through LC or CAD .
Security Deposit : Our sister company
Budenberg Gauge Co.Ltd have been supplying
pressure gauges, dial thermometers and other
pressure calibration products to various units of
BHEL for past 30/40 years and we have always
honour our commitment and have successfully
executed all the orders released on us. We have
never failed in execution of any order not even
once all these years. Further Budenberg
Gauge /DH-Budenberg have never furnish a
security deposit to any units of BHEL in past 40
years . We are a manufacturer and not a trader
and have been manufacturing pressure gauges
for over 150 years .Considering our market
reputation and past supplies we request you to
waive the submission of the security deposit .We
assure you of successful of execution of the
order if awarded on us.
PBG: We regret our inability extend any PBG
in this and request BHEL to waive the same .
In lieu of PBG , we have already agreed to
extend the warranty period to 24 month date
of despatch as against 18 months specified
against your tender . Trust , this meets your
requirement .
 Page 5 of 5

4. Late Delivery Penalty @ 0.5% per week and part LD :We confirm our acceptance of LD @
thereof subject to a maximum of 10% of PO value will be 0.5% per week to a max of 5% of the
charged in case of late delivery. order value in equivalent Indian rupees
for any delay beyond 18 weeks Ex-
works , UK from date of receipt of
BHEL firm order.
We regret our UK office policy does
not permit them to accept LD more
than 5% of the order value .
5. Please extend your offer validity up to 31.12.09. Offer Validity :We hereby confirm the
extension of our offer validity till
31.12.2009
6. Please give your acceptance to participate in Reverse Reverse Auction :We have already
Auction. submitted our offer with our best
prices and are not keen for
participation in any RA(Reverse Auction)
against the subject tender .

We trust that our point wise replies meets your requirements. Should you require any further clarifications /
additional information, please feel free contact us .

Yours faithfully
For DH-Budenberg Instrumentation Pvt. Ltd

Hemanta Panda
Sales Manager

(Enclosure: Copy of BHEL Jhansi and Trichy purchase orders)