CENTRAL PROCUREMENT ORGANISATION (MKTG)

BHARAT PETROLEUM CORPORATION LIMITED

‘A’ INSTALLATION, SEWREE FORT ROAD
SEWREE (E), MUMBAI - 400 015

OPEN TENDER
FOR SUPPLY OF SELF CLOSING VALVES FOR LPG
CYLINDERS TO VARIOUS LOCATIONS

CRFQ NO.: 1000342012

DUE DATE: 10/12/19 AT 1500 HRS

CPOM:19.IMP.1000342012/19-20:11 19th Nov, 2019

M/s.

Dear Sir/Madam,

Subject: Invitation of bid for supply of 14.825 lakh nos. of Self Closing valves
(CRFQ no. 1000342012 due on 10/12/19 at 3 pm)
1. You are invited to submit your offer in a two-part bid for supply of 14.825 lakh nos.
Self Closing (SC valves) for LPG cylinders (as per the drawing attached herewith)
over a period of 3 months from the date of placement of Rate Contract at various
locations spread all over India as intimated from time to time on the terms and
conditions contained in this tender document. The contract period can be
extended/repeated at the sole discretion of BPCL for further period of upto three
months including increasing the contract quantity calculated on pro-rata basis on
repeat order basis, at the same terms & conditions.
2. Any manufacturer having valid approval from PESO and license from BIS for
manufacture of Self closing valves required in this tender as per IS- 8737 (latest
revision), as on the original due date of this tender is eligible for quoting.
3. This tender document consists of the following annexures, which are enclosed:
a) Techno-commercial Bid
3.1 Annexure I - Instructions to Tenderer
3.2 Annexure II - General Instructions to tenderers for e-Tendering for the bid
3.3 Annexure III - Proforma of Integrity Pact
3.4 Annexure IV -Technical Specifications for SC valves
3.5 Annexure V - Drawings
3.6 Annexure VI - Terms & conditions of Agreement for Procurement of SC valves
3.7 Annexure VII- Quality Discipline Guidelines
Information pertaining to Particulars of Tenderers and Relationship with Directors
shall have to be submitted online.
b) Price Bid: A price bid shall also have to be submitted online as per the proforma
given in Annexure I mentioned in point 3.1 above.

4. Tenderers shall also have to essentially sign an Integrity Pact (IP) for participating in
this tender, as per the proforma mentioned in point (3.3) above. The salient points to
be noted in regard to IP are:

A. FOR ANY QUERIES / CLARIFICATIONS ON TENDER PLEASE CONTACT AS UNDER:

For any queries/clarifications, if any, please feel free to contact us on any working day
between 10:00 am to 4:00 pm:

Name MUMTAZ KARIM AMIT KUMAR

Contact No +91-24176572 +91-22-24176417
+91-8017777468 +91-9769992420
Email Id [email protected] [email protected]
 Office Address BPCL, Central Procurement Organization (Mktg), ‘A’
Installation, Sewree-Fort Road, Sewree (E),
Mumbai - 400 015

B. Only in case of any complaints regarding the Tender/ Tender Conditions, please
contact following Independent External Monitors (IEM) :

 Shri Vikram Srivastava, Address: E -202, Second Floor, Greater Kailash Part -2,
New Delhi-110048, Mobile : 09810642323,

Email : [email protected]

 Shri Virendra Bahadur Singh, Address: N. No. B-5/64, Vineet Khand, Gomti
Nagar, Lucknow – 226010, Mobile : 08853760730,

Email: [email protected]

 Shri Anupam Kulshreshtha, Address: B-3/3, ‘Yarrows Apartments’, Plot C-58/5,

Sector 62, Noida, UP-201309. Mobile : 9968281160

Email: [email protected]

5. Please visit the website https://bpcleproc.in for participating in this tender process and
submitting your bid online.
6. Additionally, you shall be required to submit the EMD (if applicable), in physical form at
our office.
7. A Pre-Bid Meeting will be held at CPO(M) office at Sewree on 26th November 2019 at
1430 hrs.
8. Your online bid should be submitted on or before the due date of this tender viz.
10th December, 2019 by 3 pm.
9. E-tender system will automatically close on the due date and time and bidders will not
be able to submit their bids after the closing time. Bids not in the prescribed format are
liable to be rejected. BPCL does not take any responsibility for any delay in submission
of online bids due to connectivity problem or non-availability of site and/or other
documents/instruments to be submitted in physical form due to postal delay. No claims
on this account shall be entertained.
10. Price bid of only those tenderers shall be opened whose techno-commercial bid is
found to be acceptable.
11. Bidders, holiday-listed by BPCL or MOP&NG which is valid as on the original due date
of this tender, shall not be considered. BPCL reserves the right to accept or reject any
or all the Offers at their sole discretion without assigning any reason whatsoever.
BPCL’s decision on any matter shall be Final & any bidder shall not enter into
correspondence with BPCL unless asked for. BPCL may call for additional documents
if required. BPCL would also consider information already available with them
regarding Bidder’s credentials.
12. SUPPORT DESK: In case of any clarification pertaining to E-Procurement Process,
the vendor may contact ETL on Contact Numbers and E-Mail Ids, as appended below.
 All India : +91 7968136861 / +91 7968136854: [email protected]
 CPO(M) Office : Harshal Sapkale (022 24176419) : [email protected]
Mohnish Gore (6351896637) : [email protected]

Thanking you,
Yours faithfully,
For Bharat Petroleum Corporation Ltd.

Amit Kumar
Procurement Leader –CPO (Mktg)
CRFQ NO. 1000342012 ANNEXURE I
INSTRUCTIONS TO TENDERER

INSTRUCTIONS TO TENDERER

1. Competitive offers are invited in two part bid from the manufacturers of Self-
Closing Valves (SC valves) for the supply and delivery of approximately 14.825
lakh nos. SC valves on the terms and conditions contained herein.
2. Bid Qualification Criterion (BQC)
The Eligibility Criterion/ BQC Norms for Vendors to participate in the tender are
given as under. Bidders must submit relevant documents as per bid qualifying
criteria for this tender and all such documents must be valid as on the original
due date of tender:
a) Tenderers must have valid PESO approval and BIS license for
manufacture of SC Valves required in this tender document as per IS-
8737 (latest revision) as on the original due date of this tender.
b) Tenderer should not be serving any Holiday Listing orders issued by BPCL
or MOPNG debarring them from carrying on business dealings with
BPCL/MOPNG or serving a banning order by another Oil PSE for a period
that is not over as on the original due date of this tender.

Notwithstanding any other condition/ provision in the tender documents, in case

of ambiguity or incomplete documents pertaining to BQC, bidders shall be given
only one opportunity with a fixed deadline after bid opening to provide complete
& unambiguous documents in support of meeting the BQ criteria through e-
portal. In case the bidder fails to submit any documents or submits incomplete
documents within the given time, the bidders tender will be rejected.
3. The total requirement shown in this tender enquiry is for a period of 3 months
from the date of placement of Rate Contract. The contract placed on successful
tenderers may be extended/repeated at sole discretion of Corporation for a
further period of up to 3 months including increasing the contract quantity
calculated on pro-rata basis on repeat order basis, at the same terms &
conditions. Escalation / De-escalation shall be admissible as per the requisite
Terms & Condition, for the original a well as the extended period also (if any).
4. This is basically a rate contract and quantities are not guaranteed. However,
state-wise estimated requirement as per best estimate is given at the end of this
annexure. BPCL reserves the right to ask for supplies to those states also that
are not appearing in the list.
5. To become eligible to participate in this tender, the total offered quantity of each
Tenderer should be a minimum of 50,000 nos. SC Valves and in multiples of
10,000 nos. thereafter.
6. Offers should strictly be in accordance with the tender terms & conditions and
our specifications. Tenderers are requested to carefully study all the
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INSTRUCTIONS TO TENDERER

documents/annexures and understand the conditions, specifications, drawings

etc. before submitting the tender and quoting the rates. In case of doubt, written
clarifications should be obtained, but this shall not be a justification for request
for extension of due date for submission of bids.
7. REFERENCE FOR DOCUMENTATION:
a. The number and date of Collective Request for Quotation (CRFQ) must
appear on all correspondence before finalization of Rate Contract / Purchase
Order.
b. After finalization of Rate Contract / Purchase Order, the number and date of
Rate Contract/Purchase Order must appear on all correspondence,
drawings, invoices, dispatch advices, (including shipping documents if
applicable) packing list and on any documents or papers connected with this
order.
8. RIGHT OF CORPORATION TO ACCEPT OR REJECT TENDER:
The right to accept the tender will rest with the corporation.

9. LANGUAGE OF BID:
The Bid and all supporting documentation and all correspondence exchanged
by tenderer and Corporation, shall be written in English language only.
10. Tenderers are requested to accept the Integrity Pact (IP) document by signing
it. This document is essential & binding. Tenderer’s failure to accept the IP
document may result in the bid not being considered for further evaluation.
11. Techno-commercial bid (consisting of the entire attached tender document,
Credential Bid and Declaration Form) and Price bid as well as all uploaded
documents (as mentioned in clause (15) below) shall form the part of the
tender. Both the techno-commercial bid and the price bid will be online
only. Only EMD is exception to this rule, which will have to be submitted in
envelope. General Instructions to tenderers for e-Tendering for bid are
enclosed as Annexure II.
12. All the supporting documents should be legible and duly signed, stamped and
attested by the authorized signatory as specified in clause (13) below, before
uploading them online.

13. Techno-commercial bid and price bid shall be required to be digitally signed
with a class IIB or above digital signature by the authorised signatory. The
authorized signatory shall be :
a. Proprietor in case of proprietary concern.
b. Authorised partner in case of partnership firm.
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CRFQ NO. 1000342012 ANNEXURE I
INSTRUCTIONS TO TENDERER

c. Director, in case of a limited Company, duly authorized by its board of

directors to sign.
If for any reason, the proprietor or the authorised partner or director as the case
may be are unable to sign the document, the said document should be signed
by the constituted attorney having full authority to sign the tender document and
copy of such authority letter as also the power of attorney, duly signed in the
presence of a Notary public should be submitted online with the bid.
Online submission of the tender under the digital signature of the authorized
signatory shall be considered as token of having read, understood and totally
accepted all the terms and conditions. Tenderer’s digital signature on the
documents shall be considered as total acceptance of the terms & conditions.
14. Earnest Money Deposit (EMD)
a) The tenderers shall submit an interest-free Earnest Money Deposit of Rs. 10
lakh (Rupees ten lakhs only) in the form of -
i. Demand Draft drawn on any nationalised/ scheduled bank in favour of
“BHARAT PETROLEUM CORPORATION LTD” payable at Mumbai.
OR
ii. Bank Guarantee (BG) executed by any Scheduled Bank approved by
Reserve Bank of India as per the pro-forma given at the end of this
Annexure. The BG shall remain valid for a period of six months from the
due date of opening of the tender

b) EMD should be submitted in physical form in a sealed cover addressed to

Procurement Leader (Group 1), boldly super-scribed on the outer cover –
 CRFQ number
 Item
 Closing date/Time
 Name of the tenderer

It should be dropped in the tender box or sent by Registered Post/Courier to

the following address so as to reach on or before the due date & time of the
tender:
Central Procurement Organization (CPO),
‘A’ Installation, Sewree Fort Road,
Sewree, Mumbai-400015

BPCL will not be responsible for non-receipt of instrument(s) due to postal

delay/loss in transit etc.

c) Cheques, cash, Money Orders, Fixed deposit Receipts etc. towards EMD
are not acceptable. Similarly, request for adjustment against any previously
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CRFQ NO. 1000342012 ANNEXURE I
INSTRUCTIONS TO TENDERER

deposited EMD/Pending Dues/Bills/Security Deposits of other contracts etc.

will not be accepted towards EMD.

d) Bid received without the EMD is liable to be rejected.

e) Units registered with National Small Industries Corporation (NSIC) and/or

Micro or Small Enterprises (MSE) are however, exempted from payment of
EMD, subject to:
 The unit being registered for the item tendered.
 Registration certificate being valid as original due date of the tender.

As the case may be, such tenderers must upload a photocopy of valid NSIC
Registration Certificate/ Review certificate duly certified by TPIA (photocopy
of application for registration as NSIC or for renewal will not be acceptable)
and/or duly certified by TPIA of all the pages of the EM-II certificate issued
by any authority mentioned in the Public Procurement policy of MSEs-2012
or self-attested copy of Udyog Aadhaar Memorandum (UAM), failing which
such bid will be treated as bid received without EMD and liable to be
rejected.

Such tenderers should also upload a declaration on a duly notarized Rs.100

stamp paper stating that, in the event of award of contract, all the ordered
supplies shall be made from the premises for which MSE certificate has
been submitted.

f) Registration with DGS&D will not entitle the Tenderer to claim exemption
from payment of EMD.
g) EMD is liable to be forfeited (over and above the Holiday listing as
applicable vide Holiday Listing policy as specified in Clause 22 of this
Annexure), in the event of :
i. Withdrawal of offers during the validity period of the offer. (Refer item
no. 19 of this Annexure)
ii. Non-acceptance of LOI/order, if and when placed.
iii. Any unilateral revision in the offer made by the tenderer during the
validity of the offer.
iv. Non-payment of Supply and Performance Guarantee amount within the
stipulated period of 10 days from date of LOA/ the Purchase Order
whichever is earlier.
h) EMD will be refunded by National Electronic Fund Transfer to all the
successful tenderers after they deposit the amount for Supply and
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CRFQ NO. 1000342012 ANNEXURE I
INSTRUCTIONS TO TENDERER

Performance Guarantee (refer Item 2 of Annexure VI) against

LOA/Purchase Orders, as placed. In case of successful vendor wishes to
convert the EMD amount to Supply and performance Guarantee amount, the
vendor should submit written request for the same.
i) EMD will be refunded by National Electronic Fund Transfer to all the
unsuccessful tenderers after placement of order on all successful tenderers.

15. The complete process for submitting the bid is as follows:

All bidders shall have to submit the quotes. The definition of a bidder is the
entity which has unique BIS licence and unique PESO approval.
A. Techno-commercial bid
a. Accept the contents of the following annexures in toto by selecting the
appropriate option in the forms provided for this purpose:
i Instructions to Tenderer - Annexure I
ii General Instructions to tenderers for - Annexure II
e-Tendering
iii Technical Specifications of for SC Valves - Annexure IV
iv Drawings - Annexure V
v The terms & conditions of Agreement for - Annexure VI
Procurement of SC Valves
vi Quality Discipline Guidelines - Annexure VII
b. Proforma of Integrity Pact has been uploaded as Annexure III of tender
documents. Tenderer shall be required to download and print it such that it
is legible. All pages of the printed copy of IP should be duly signed by the
authorized signatory as specified in clause (13) above and witnessed.
Thereafter, that copy should be scanned and uploaded by tenderer along
with other bid documents.
c. Upload a scanned copy (in pdf or jpg format) of the following documents.
i. Certificate of PESO approval and BIS licence duly attested (original as well as
the latest renewal certificate, if applicable) valid as on original due date of
tender.
ii. Integrity Pact duly signed and witnessed
iii. Copy of PAN Card
iv. Copy of Valid NSIC certificate or copy of all the pages of the EM-II certificate
issued by any authority mentioned in the Public procurement policy of MSEs-
2012 or self-attested copy of Udyog Aadhaar Memorandum (UAM), (if
applicable)
v. Copy of the certificate stating that MSEs is owned by Scheduled Caste (SC)
or the Scheduled tribe (ST) entrepreneurs,(if applicable) and also CA
certificate declaring the percentage of shareholding of SC/ST entrepreneur(s)

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CRFQ NO. 1000342012 ANNEXURE I
INSTRUCTIONS TO TENDERER

vi. In case MSEs is owned by Women entrepreneurs then submit a copy of

Aadhaar Card of the women entrepreneur(s) and CA certificate declaring the
percentage of shareholding of Women entrepreneur(s).
vii. Bidder’s declaration on a duly notarized Rs.100 stamp paper stating that, in
the event of award of contract, all the ordered supplies shall be made from the
premises for which MSE certificate has been submitted.

All the documents as mentioned above from (i), (iii), (iv), (v) and (vi) should
be duly verified and certified by TPIA who are registered under “NABCB
accredited bodies as per requirement of ISO/IEC17020 as Type A” in QCI
NABCB website (link to the website is as follows -
nabcb.qci.org.in/accreditation/reg bod_inspection_bodies.php) as on date of
verification of documents. The verification and certification should include
Name and contact details (contact number and e-mail ID) of the certifying
officer, TPIA name with the address of TPIA branch undertaking the
certification. All charges of the Third party for attestations and verification
shall be borne by the Bidders.
In case the no. of pages to be uploaded are more, then the same can also
be zipped and uploaded.

d. Online fill in the information in Credential Bid Form and Declaration Form .
Additionally, EMD [if applicable] has to be submitted in physical form.

In case the no. of pages to be uploaded are more, then the same can also
be zipped and uploaded.

Additionally, EMD [if applicable] has to be submitted in physical form.

B. Price bid
Online fill in the quotes in the price bid form. The proforma of the price bid
form has been provided as clause (28) of this annexure
16. Incomplete bids or bids received with deviations/subjective or counter
conditions/quantity restrictions are liable to be rejected. No further
correspondence/enquiries raised on this issue by the tenderer shall be
entertained. Any terms and conditions stated by the Tenderer in his bid will not
be binding on the Corporation.
17. Bids submitted after the due date and time and those not in the format or not in
conformity with the prescribed terms and conditions or specifications shall be
summarily rejected and no further correspondence/ enquiries shall be
entertained on the issue. No responsibility shall be taken by the Corporation and
no claims on this account shall be entertained.

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CRFQ NO. 1000342012 ANNEXURE I
INSTRUCTIONS TO TENDERER

18. Unsolicited / conditional discounts if offered by any party will not be considered
and offers of parties offering such unsolicited discounts are liable to be rejected.
19. The rates quoted against this tender shall be valid for a period of 90 days from
the date of opening of the tender.
20. ACCEPTANCE OF BIDS BY THE CORPORATION:
a) Techno-commercial Bid
Based on the information and documents submitted, all tenderers meeting the
following criterion shall qualify in the bid:
i. They should meet the bid qualification criteria. Refer clause 2 of this
Annexure.
ii. They should accept the Techno-commercial bid in entirety as explained in
clause 15 above.
iii. They should accept all the technical specifications and agree to manufacture
SC Valves as per enclosed drawings
iv. They should have submitted the Integrity Pact duly signed and witnessed.
v. They should have submitted the EMD or should have uploaded a TPIA
certified copy of valid NSIC Registration Certificate/ Review certificate or a
TPIA certified copy of all the pages of the EM-II certificate issued by any
authority mentioned in the Public Procurement policy of MSEs-2012 or self-
attested copy of Udyog Aadhaar Memorandum (UAM) [if and as applicable]
vi. In case MSEs is owned by SC/ST entrepreneurs then submit caste
certificate issued by appropriate government authority and also CA
certificate declaring the percentage of shareholding of SC/ST
entrepreneur(s) and share value as per the below format –

Name of Share value in INR

Sl.no. General/SC/ST Share holding (%)
owner(s)

vii. In case MSEs is owned by Women entrepreneurs then submit CA certificate

declaring the percentage of shareholding of Women entrepreneur(s) and
share value as per the below format.

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CRFQ NO. 1000342012 ANNEXURE I
INSTRUCTIONS TO TENDERER

Name of Gender (Male Share value in INR

Sl.no. Share holding (%)
owner(s) / Female)

viii. BPCL should have received the EMD (if applicable) for existing category
bidder and EMD (if applicable) and SD cum PBG for upcoming new bidder,
submitted by them.
ix. They should not be serving any Holiday Listing orders issued by BPCL or
MOP&NG debarring them from carrying on business dealings with
BPCL/MOP&NG or serving a banning order by another Oil PSE for a period
that is not over as on the initial due date of this tender. Declaration to this
effect to be submitted by the bidder.

All the documents as mentioned above in (i), (v), (vi) and (vii) should be duly verified
and certified by TPIA who are registered under “NABCB accredited bodies as per
requirement of ISO/IEC17020 as Type A” in QCI NABCB website (link to the website
is as follows - nabcb.qci.org.in/accreditation/reg_bod_inspection_bodies.php) as on
date of verification of documents. The verification and certification should include
Name and contact details (contact number and e-mail ID) of the certifying officer,
TPIA name with the address of TPIA branch undertaking the certification. All charges
of the Third party for attestations and verification shall be borne by the Bidders.

Price bid of only those tenderers shall be opened who qualify in the
Techno-commercial bid.
b) Price Bid
i. Through this tender, BPCL seeks to surface the lowest price supplier for
each state. Hence, price bid evaluation shall be done at the level of
individual state.
ii. The order allotment will be finalized by BPCL by taking into account the
following:
 Quoted basic price
 Other cash outflows that shall include GST and freight for a particular
tenderer for each state
 Input Tax Credit (ITC) available, if any
 Quantity Offered by the tenderer

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CRFQ NO. 1000342012 ANNEXURE I
INSTRUCTIONS TO TENDERER

iii. BPCL shall calculate the net delivered price (NDP) per SC Valve for each
state for each tenderer by adding:
 GST (Goods and Service Tax) incl. all cesses, surcharges etc. as
applicable and declared by the tenderer
 Freight quoted per SC Valve
to the basic price per SC Valve quoted by the tenderer.

Thus NDP would be determined using the following formula:

NDP = (quoted basic price per SC Valve + Freight) * (1+GST [in
%]/100)

“Net cost to BPCL” (equal to net delivered price [NDP] as calculated above
less input tax credit [ITC]) shall form the basis for selection of tenderers
for placement of order and initial order allotment.

Net cost to BPCL = NDP - ITC

ITC or Input Tax Credit is credit available to BPCL against GST charged by
the vendor.

For the purpose of tender evaluation, the Net Cost to BPCL

calculated as above shall be rounded off to two-places of decimal (i.e.
nearest paise) using Microsoft Excel software.
iv. Based on the “net cost to BPCL” calculated as above, BPCL shall place
orders on one or more tenderers whose offer is considered acceptable to
BPCL.
An illustration is as under:
Let us assume that for a particular state the bidder quotes the following -
 Basic price = Rs.89/- per SC VALVE
 Freight from vendor’s unit to XYZ plant = Rs.2/- per SC VALVE
 GST = 18% and ITC = 18%
Then,
 NDP = (89 + 2) * (1+ 18/100) = Rs.107.38 per SC VALVE
Thus Rs. 107.38 per SC Valve shall be payable to the vendor

 Now, ITC available to BPCL = (89+2) * 18/100 = Rs.16.38

 “net cost to BPCL” = NDP - ITC
= Rs.107.38– Rs.16.38=Rs.91.00 per SC VALVE
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CRFQ NO. 1000342012 ANNEXURE I
INSTRUCTIONS TO TENDERER

For the purpose of evaluation this quote shall be considered as Rs. 91 per
SC VALVE.
v. Ranking of tenderers will be based on “net cost to BPCL” calculated as per
the original quotation. Order distribution will be done such that there
are minimum two vendors for each state. The ratio of order
distribution among L1:L2 will be on 80:20 basis, subject to the
availability of quantity offered by the lowest quoted vendor.
vi. In the event that same rate is quoted by 2 or more tenderers for any state
and even if they are acceptable to BPCL, BPCL is not bound to either
accept all such offers or to equally distribute the state’s requirement for SC
Valves amongst the tenderers who have quoted the same rate.

vii. Orders on units who qualify in the bid but have not supplied SC Valves to
OMCs so far or in the last two years (ending on the date of floating the
tender), shall be placed only after BPCL ascertains their capability. In case
the manufacturing/ Inspection facilities set-up by such tenderers are found
satisfactory by BPCL, a trial order for minimum 5000 numbers SC Valves
(or allotted contract quantity, whichever is lower) will be placed. On
satisfactory execution of the trial order which is cleared during the pre-
delivery inspection by the BPCL technical team, BPCL shall consider
placement of regular orders based on allotment.

viii. BPC reserves the right to negotiate with tenderers and counter offer a rate
if required. The contracts shall be finalized at the valid quoted rates that
shall change in line with clause 4 of Annexure VI (Price).
ix. In the event the tenderer who has offered the best rates, fails to supply the
SC Valves, BPCL may place orders with the next best tenderers, if
considered necessary.
x. In the event it becomes necessary for the Corporation to procure SC
Valves at different rates, then the Corporation reserves the right to make
order allotment in such a way so as to enable the Corporation to get the
maximum advantage.
xi. The Corporation reserves the right to reject any and/or every tender without
assigning any reason whatsoever and/or place order on one or more
tenderers and/ or carry out negotiations with any tenderer in the manner
considered appropriate by the Corporation. Corporation also reserves the
right to reject any un-workable offer.
xii. Corporation also reserves its right to allow Micro and Small Enterprises
(MSEs) and MSEs owned by Scheduled Caste (SC) or the Scheduled tribe
(ST) entrepreneurs or MSE owned by Women, purchase preference as
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CRFQ NO. 1000342012 ANNEXURE I
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admissible/applicable from time to time under the existing Govt. policy.

Purchase preference to a MSE and a MSE owned by SC/ST entrepreneurs
shall be decided based on the price quoted by the said MSEs as compared
to L1 Vendor at the time of evaluation of the price bid.
Bidders claiming purchase preference as MSE need to submit the
documents:
a) TPIA certified copy of all the pages of the EM-II certificate issued by
any authority mentioned in the Public procurement policy of MSEs-
2012 or a TPIA certified copy of Udyog Aadhaar Memorandum
(UAM).
b) Bidder’s declaration on a duly notarized Rs.100 stamp paper stating
that, in the event of award of contract, all the ordered supplies shall
be made from the premises for which MSE certificate has been
submitted.

21. Tenderers may have to attend the concerned office of the Corporation for
clarifications and/or pre-bid meeting and/or negotiations/clarifications if required
at their own cost, in respect of their bids without any commitment from the
Corporation.
22. POLICY ON HOLIDAY LISTING
The guidelines and procedures for Holiday Listing are available separately in
BPCL website and shall be applicable in the context of all tenders floated and
consequently all orders/ contracts / purchase orders. It can be accessed using
the following link: http://bharatpetroleum.in/pdf/holidaylistingpolicyfinal.pdf
23. ANTI –COMPETITIVE AGREEMENTS/ABUSE OF DOMINANT POSITION:
The Competition Act, 2002 as amended by the Competition (Amendment) Act,
2007 (the Act), prohibits anti-competitive practices and aims at fostering
competition and at protecting Indian markets against anti- competitive practices
by enterprises. The Act prohibits anti-competitive agreements, abuse of
dominant position by enterprises, and regulates combinations (consisting of
acquisition, acquiring of control and M&A) wherever such agreements, abuse or
combination causes, or is likely to cause, appreciable adverse effect on
competition in markets in India. Bedsides taking punitive action as enshrined
under Integrity Pact, BPCL reserves the right to approach the Competition
Commission established under the Act of Parliament and file information
relating to anti-competitive agreements and abuse of dominant position. If such
a situation arises, then tenderers shall be bound by the provisions of the said
statute.
24. It shall be understood that every endeavour has been made to avoid errors
which can materially affect the basis of the tender and the successful tenderer

_________________________________________________________
Page 11 of 17
CRFQ NO. 1000342012 ANNEXURE I
INSTRUCTIONS TO TENDERER

shall take upon himself and provide for risk of any error which may subsequently
be discovered and shall make no subsequent claim on account thereof.
25. Courts in the city of Mumbai alone shall have jurisdiction to entertain any
application or other proceedings in respect of anything arising under this tender
either before or after or during finalisation of the tender.
26. State-wise estimated requirement of SC Valves is given below. However, it is
liable to change depending on actual demand in the state.
Sl.No. States/ Union Territory Requirement
1 Andhra Pradesh 31267
2 Assam 7147
3 Bihar 67001
4 Chattishgarh 37520
5 Goa 4914
6 Gujarat 74817
7 Haryana 138468
8 J&K UT 2792
9 Karnataka 33724
10 Kerala 46901
11 Maharashtra 391953
12 Madhya Pradesh 37967
13 Orissa 24120
14 Punjab 86654
15 Rajasthan 61194
16 Telangana 37967
17 Tamil Nadu 106196
18 Uttar Pradesh 179339
19 Uttrakhand 22334
20 West Bengal 90225
Total 1482500

27. List of abbreviations used :

 The terms “BPC”, “BPCL”, The Corporation, the Company and Owner in the
appropriate context means Bharat Petroleum Corporation Limited, the Company
registered under Companies Act 1956 and includes its successors and
assignees.
 The term “RATE CONTRACT” means the agreement for supply of goods/
materials between Owner and successful tenderer, for a fixed period of time (i.e
till validity of Rate Contract, with no commitment of contractual quantity) on

_________________________________________________________
Page 12 of 17
CRFQ NO. 1000342012 ANNEXURE I
INSTRUCTIONS TO TENDERER

mutually agreed terms and conditions. The actual supply of goods/ materials
shall take place only on issue of separate purchase orders for required quantity
as and when required by Owner.
 The term “PESO” in the appropriate context means Petroleum and Explosive
Safety Organisation.
 The term “BIS” in the appropriate context means Bureau of Indian Standards.
 The term “OITC” in the appropriate context means Oil Industry Technical
Committee.
 The term “OMC” in the appropriate context means PSU Oil Marketing
Companies viz. M/s Indian Oil Corpn. Ltd, M/s Bharat Petroleum Corpn. Ltd.
and M/s Hindustan Petroleum Corpn. Ltd.
 The term “SC Valve” in the appropriate context means Self-closing Valve
 The term “UT” in the appropriate context means Union Territory
 The term “PSU” / “PSU Oil Company” in the appropriate context means Public
Sector Undertaking Oil Marketing Companies
 The term “LoI” in the appropriate context means Letter of Intent
 The term “LoA” in the appropriate context means Letter of Acceptance
 The term “PO” in the appropriate context means Purchase Order
 The term “PR” in the appropriate context means Price Reduction
 The terms “NDP” in the appropriate context means Net Delivered Price
 The term “VAT” in the appropriate context means Value Added Tax
 The term “ITC” in the appropriate context means Input Tax Credit
 The term “BPEC” in the appropriate context means BPCL’s Business Process
Excellence Centre located at Kharghar, Navi Mumbai

_________________________________________________________
Page 13 of 17
CRFQ NO. 1000342012 ANNEXURE I
INSTRUCTIONS TO TENDERER

28. Proforma of the price bid form is as follows:

A. Quantity Offered and Basic Price and GST:

S. Short Long description Data

No. Description
1 Quantity Offered This shall be the maximum quantity of the tendered
material the tenderer shall be able to manufacture &
(nos.) supply during the contract period to BPCL, of the
specifications and on the terms mentioned in the
tender document. The tenderer shall have to offer
To be
minimum quantity of 50,000. BPCL shall have the quoted by
right to verify the offered manufacturing capacity at the
any time during the currency of the tender/ orders and
amend the order quantity suitably. Any and all financial tenderer
risk, cost and penalties on account of this would be
borne by the tenderer.

2 Minimum The tenderer shall have to offer minimum quantity of 50,000 nos.
quantity to be
offered
3 Incremental Quantity offered over and above the minimum quantity 10,000 nos.
should be in multiples of
quantity
4 Contract Period Contracts shall be valid for 3 months
5 Basic price per It is to be quoted in Rs. per unit of material and shall
include all applicable duties, taxes (except GST),
unit of material transit insurance (if tenderer desires so),
(Rs.) loading/unloading charges and any other incidental To be
charges and such other duties and levies as may be quoted by
imposed for sale and delivery of the tendered material.
Only GST as applicable and declared by the tenderer, the
freight as quoted shall be payable over and above this tenderer
amount.

6 Base date for The afore-mentioned rate shall be suitably 01-11-2019

escalated/de-escalated as per tender conditions. The
price basic price should be quoted based on the raw
calculations material rates, taxes and duties prevailing as on

7 GST payable on It is to be quoted in % and shall also include any cess, To be

surcharge etc. payable on GST
the material (%) quoted by
the
tenderer

_________________________________________________________
Page 14 of 17
CRFQ NO. 1000342012 ANNEXURE I
INSTRUCTIONS TO TENDERER

B. Rate of freight: This shall consist of Rs. per SC Valve freight rates from the
manufacturing unit premises to all the plants in each State. Please put
Freight as zero for states in which you are not interested in supplying the
material:

Sl.No. States/ Union Territory Freight (in Rs. Per SC valve)

1 Andhra Pradesh
2 Assam
3 Bihar
4 Chattishgarh
5 Goa
6 Gujarat
7 Haryana
8 J&K UT
9 Karnataka
10 Kerala
11 Maharashtra
12 Madhya Pradesh
13 Orissa
14 Punjab
15 Rajasthan
16 Telangana
17 Tamil Nadu
18 Uttar Pradesh
19 Uttarakhand
20 West Bengal

_________________________________________________________
Page 15 of 17
CRFQ NO. 1000342012 ANNEXURE I
INSTRUCTIONS TO TENDERER

PROFORMA OF BANK GUARANTEE

(On non-judicial paper of appropriate value)

FOR EARNEST MONEY / SECURITY DEPOSIT TOWARDS PERFORMANCE

To
Bharat Petroleum Corporation Ltd.
Dear Sirs,
M/s. ________________________________________________have taken tender for the
work______________________CRFQNo/PONo__________________________________
______ for Bharat Petroleum Corporation Ltd.

The tender Conditions of Contract provide that the Contractor shall pay a sum of
Rs._____________________________________________________
(Rupees___________________________________________) as earnest money/security
deposit in the form therein mentioned. The form of payment of earnest money/security
deposit includes guarantee executed by Scheduled Bank, undertaking full responsibility to
indemnify Bharat Petroleum Corporation Ltd. in case of default.

The said_________________________________________ have approached us and at their

request and in consideration of the premises
we_______________________________________________having our office at
___________________have agreed to give such guarantee as hereinafter mentioned.

1. We_______________________________________________________________ hereby
undertake and agree with you that if default shall be made by M/s.
_____________________________________ in performing any of the terms and
conditions of the tender or in payment of any money payable to Bharat Petroleum
Corporation Ltd., we shall on demand pay to you in such matter as to you may direct the
said amount of Rupees _______________________________only or such portion thereof
not exceeding the said sum as you may from time to time require.

2. You will have the full liberty without reference to us and without effecting this guarantee
postpones for any time or from time to time the exercise of any of the powers and rights
conferred on you under the contract with the said ______________and to enforce or to for
bear from endorsing any power of rights or by reason of time being given to the said which
under law relating to the sureties would but for provision have the effect of releasing us.

3. Your right to recover the said sum of

Rs.__________________(Rupees__________________ ____________________) from us
in manner aforesaid will not be affected or suspended by reason of the fact that any
dispute or disputes have been raised by the said M/s.__________________
_________________and/or that any dispute or disputes are pending before any officer,
tribunal or court.
_________________________________________________________
Page 16 of 17
CRFQ NO. 1000342012 ANNEXURE I
INSTRUCTIONS TO TENDERER

4. The guarantee herein contained shall not be determined or affected by the liquidation or
winding up, dissolution or change of constitution or insolvency of the said______________
____________________but shall in all respects and for all purposes be binding operative
units payment of all money due to you in respect of such liabilities is paid.

5. Our liability under this guarantee is restricted to

Rupees__________________________________. Our guarantees shall remain in force
until_____________________________________________ unless a suit or action to
enforce a claim under_________________________________________ Guarantee is filed
against us within six months from _____________________________(which is date of
expiry of guarantee) all our rights under the said guarantee shall be forfeited and shall be
relieved and discharged from all liabilities thereunder.

6. We have power to issue this guarantee in your favour under Memorandum and Articles of
Association and the undersigned has full power to do under the Power of Attorney dated
__________________granted to him by the Bank.

Yours faithfully

______________________________ Bank by its Constituted Attorney Signature of a

person duly authorized to sign on behalf of the bank.

_________________________________________________________
Page 17 of 17
CRFQ No.: 1000342012 Annexure II
General Instructions to vendors for e-Tendering

General Instructions to vendors for e-tendering

1. Interested parties may download the tender from BPCL website

(http://www.bharatpetroleum.in) or the CPP portal (http://eprocure.gov.in) or
from the e-tendering website (https://bpcleproc.in) and participate in the tender
as per the instructions given therein, on or before the due date of the tender.
The tender available on the BPCL website and the CPP portal can be
downloaded for reading purpose only. For participation in the tender, please fill
up the tender online on the e-tender system available on https://bpcleproc.in.

2. For registration on the e-tender site https://bpcleproc.in, one can be guided by

the “Instructions to Vendors” available under the download section of the
homepage of the website. As the first step, bidder shall have to click the
“Register” link and fill in the requisite information in the “Bidder Registration
Form”. Kindly remember your e-mail id (which will also act as the login ID) and
the password entered therein. Once you complete this process correctly, you
shall get a system generated mail. Thereafter, login in to the portal using your
credentials. When you log in for the first time, system will ask you to add your
Digital Signature. Once you have added the Digital Signature, please inform
the vendor administrator @ [email protected] with a copy to
[email protected] for approval. Once approved, bidders can
login in to the system as and when required.

3. As a pre-requisite for participation in the tender, vendors are required to obtain

a valid Digital Certificate of Class IIB and above (having both signing and
encryption certificates) as per Indian IT Act from the licensed Certifying
Authorities operating under the Root Certifying Authority of India (RCIA),
Controller of Certifying Authorities (CCA). The cost of obtaining the digital
certificate shall be borne by the vendor.

In case any vendor so desires, he/she may contact our e-procurement service
provider M/s. E-Procurement Technologies Ltd., Ahmedabad (Contact no. Tel:
+91 079- 68136861/849/871) for obtaining the digital signature certificate.

4. Corrigendum/amendment, if any, shall be notified on the site

https://bpcleproc.in. In case any corrigendum/amendment is issued after the
submission of the bid, then such vendors who have submitted their bids, shall
be intimated about the corrigendum/amendment by a system-generated email.
It shall be assumed that the information contained therein has been taken into
account by the vendor. They have the choice of making changes in their bid
before the due date and time.

Page 1 of 3
CRFQ No.: 1000342012 Annexure II
General Instructions to vendors for e-Tendering

5. Price bid of only those vendors shall be opened whose Techno-Commercial

bid is found to be acceptable to us. The schedule for opening the price bid
shall be advised separately.

6. Directions for submitting online offers, electronically, against e-procurement

tenders directly through internet:

(i) Vendors are advised to log on to the website (https://bpcleproc.in) and

arrange to register themselves at the earliest.

(ii) The system time (IST) that will be displayed on e-Procurement web page
shall be the time considered for determining the expiry of due date and
time of the tender and no other time shall be taken into cognizance.

(iii) Vendors are advised in their own interest to ensure that their bids are
submitted in e-Procurement system well before the closing date and
time of bid.

(iv) If the vendor intends to change/revise the bid already submitted, they shall
have to withdraw their bid already submitted, change / revise the bid and
submit once again. However, if the vendor is not able to complete the
submission of the changed/revised bid within due date & time, the
system would consider it as no bid has been received from the
vendor against the tender and consequently the vendor will be out of
contention. The process of change / revise may do so any number of
times till the due date and time of submission deadline. However, no bid
can be modified after the deadline for submission of bids.

(v) Once the entire process of submission of online bid is complete, they will
get an auto mail from the system stating you have successfully submitted
your bid in the following tender with tender details.

(vi) Bids / Offers shall not be permitted in e-procurement system after the due
date / time of tender. Hence, no bid can be submitted after the due date
and time of submission has elapsed.

(vii) No manual bids/offers along with electronic bids/offers shall be permitted.

7. For tenders whose estimated procurement value is more than Rs. 10 lakhs,
vendors can see the rates quoted by all the participating bidders once the
price bids are opened. For this purpose, vendors shall have to log in to the
portal under their user ID and password, click on the “dash board” link against
that tender and choose the “Results” tab.

Page 2 of 3
CRFQ No.: 1000342012 Annexure II
General Instructions to vendors for e-Tendering

8. No responsibility will be taken by BPCL and/or the e-procurement service

provider for any delay due to connectivity and availability of website. They
shall not have any liability to vendors for any interruption or delay in access to
the site irrespective of the cause. It is advisable that vendors who are not well
conversant with e-tendering procedures, start filling up the tenders much
before the due date /time so that there is sufficient time available with him/her
to acquaint with all the steps and seek help if they so require. Even for those
who are conversant with this type of e-tendering, it is suggested to complete
all the activities ahead of time. It should be noted that the individual bid
becomes viewable only after the opening of the bid on/after the due date and
time. Please be reassured that your bid will be viewable only to you and
nobody else till the due date/ time of the tender opening. The non availability of
viewing before due date and time is true for e-tendering service provider as
well as BPCL officials.

9. BPCL and/or the e-procurement service provider shall not be responsible for
any direct or indirect loss or damages and or consequential damages, arising
out of the bidding process including but not limited to systems problems,
inability to use the system, loss of electronic information etc.

In case of any clarification pertaining to e-procurement process, the vendor

may contact the following agencies / personnel:

1. For system related issues :

a. M/s. E-Procurement Technologies Ltd at contact no. Tel: +91 079-
68136861/849/871/0120-2474951/033-24293447 followed with an e-
mail to id [email protected]
b. Procurement Manager of M/s. BPCL at contact no. +91-22-
24176572 followed with an e-mail to ID
[email protected]

2. For tender related queries:

a. Mr. Mumtaz Karim of BPCL at contact no. +91-22-24176572/
24176423 followed with an email to ID
[email protected]
b. Mr. Amit Kumar of BPCL at contact no. +91-22-24176417 followed
with an email to ID [email protected]

The responsible person of the tender is Mr. Amit Kumar of BPCL at contact
no. +91-22-24176417.

Page 3 of 3
TENDER NO:1000342012 ANNEUXURE-IV
TECHNICAL SPECIFICATIONS
TECHNICAL SPECIFICATIONS OF SELF CLOSING TYPE VALVES FOR LPG
CYLINDERS
A. Specifications

1. Self Closing Type Valves For LPG Cylinder:

LPG Cylinder Valves, 25.6 mm Self Closing Type with Vertical outlet and incorporating vertical
spring actuated spindle as detailed in Appendix - 4 (Page 6 of IOC" Implementation Report "
dated March,1985. Valves inlet and outlet confirming to Kosan Teknova Drawing No.186N502
dated 23.1.1985 (Revision K) and valve outlet fitted with "Joint Packing" as per Drawing No.
24226-C dated 31.05.2016(High Quality O-ring) attached herewith. Valves should conform to
Bureau of Indian Standards Specifications IS: 8737 (Latest Revision) and duly inspected and
certified / marked by BIS. The material of the valve housing (Valve body) shall comply with
the physical & chemical properties of Brass as per IS: 8737 (latest) and the same shall be
mandatory.

The dimensional details as well as materials of construction for all other components of all the
valves supplied would be in conformity with the Kosan Teknova Drawings specified above and
maintenance of “Inspection and Quality Assurance Formats". Marking on the Valves shall be
as per Drawing No. VALVE A1 Dated :12.03.2003 attached herewith.

Post forging & Trimming, shot blasting must be employed using SS shots/cut wire or other
suitable blasting media in place of Pickling / Cromatisation. The process must be tuned so as
to give a glossy surface finish and clean surface for clearly legible marking & stamping.

2. Plastic Thread Protector Cap:

This cap shall be without markings and dimensions as per drawing (Page 16 Appendix 4 (X) of
“Implementation Report").

3. Safety Cap:

(a) Safety Caps shall be of " DUPONT DELRIN 500 P/900P/1700P, CELCON M-90 / M-140 OR
TENAC-5010 (all virgin materials) suitable for fixing at the outlet of Self Closing Compact
Valve (25.6 mm dia) as per our drawing no: LPG:D:DELRIN CAP Rev 1 dt. 03.12.2014 with
Stainless steel spring clip and soft twin Poly propylene (PP) multi fibre chord of adequate
strength. Material for safety caps should be of Virgin Material.

To be purchased from OITC approved vendors (Latest Revised List mentioned at the end of
this Annexure).

(b) Safety Cap for Self Closing compact Valve for LPG Cylinder complete with spring and soft
twin nylon chords with knot fused to ensure that it does not get opened under any
circumstances. Safety Caps should satisfy the entire requirement including material
Specifications given in the said Drawing.

Page 1 of 6
TENDER NO:1000342012 ANNEUXURE-IV
TECHNICAL SPECIFICATIONS
(i) Safety Caps shall be moulded using Automatic Injection moulding machines only
and not by semi automatic / hand moulding machines. Above requirements to be
informed to your respective cap vendors.
(ii) If it is deemed necessary the samples of Cap Assembly and or Delrin as well as
spring material used would be tested by us in a laboratory of our choice and the
results so obtained would be final and binding on you.

4. Joint Packing (High Quality O-RingRing) shall be procured To be purchased from

OITC approved vendors ( Latest Revised List)

HIGH QUALITY O-RING:

SC Valves shall be fitted with High quality O rings. The SC Valve manufacturers shall
procure High Quality O rings from OITC Approved vendors only. Cylinder
manufacturer should procure SC valves fitted with High Quality O-ring only. List of
OITC approved vendors for supply of High quality O rings as on tender date attached.
Also as and when new vendors are enlisted in the OITC approved list same will be
intimated to all cylinder Vendors and Valve vendors. Cylinder vendors while procuring
SC valves should ensure quality certificate and Invoice of the High quality O-ring fitted
in the valves and same shall be kept for record and should be available for inspection
by OITC/OMC officials. Vendor also has to attach the copy of quality certificate and
Invoice of the High quality O-ring along with every cylinder consignment.

OITC approved vendors for supply of High quality O rings for SC Valves.

Sr
Identificati
N Name of the Vendor Contact Details
on Mark
o.
1 M/s TVS Argomm Private Ltd Mr A.V.Ravi TVS
Aritapatti Road, Narasingampatti, Mobile
Therkutheru Post, Melur Taluk, :09944022233/9500919031
Madurai - 625 122, Tamil Nadu Email:
[email protected]
2 M/s Vajra Rubber Products (P) Ltd, Mr John Rajni / Prashant VR
PynGode, Konathukunnu (PO), Mobile : +91
Thrissur Dist. Kerala - 680123 7012335166/9447798727
[email protected]
3 M/s Standard Elastomers Mr G .S .Kaushik SE
289-A , KIADB Industrial Area, [email protected]
Phase II 09035898291
Harohalli village, Kanakapura taluk
Dist: Ramanagara ,Karnataka
Pin 562112

Page 2 of 6
TENDER NO:1000342012 ANNEUXURE-IV
TECHNICAL SPECIFICATIONS
B. Terms & Conditions for Transfer of Kosan Teknova Technology

1. Transfer Of Technology :

Technology transfer shall be offered to new successful tenderers. The transfer is subject to a
non refundable ‘Technology Transfer Fee’ of Rs 10 lacs and execution of a ‘Know-how &
Technical Assistance Agreement’ with M/s. Indian Oil Corporation Limited by the prospective
manufacturer. Payment of Technology Transfer fees shall be applicable to all successful new
tenderers irrespective of their being NSIC units or Public Sector Enterprises.

2. Implementation Of Technology :

The successful new tenderers will be required to implement the technology in all respect
within 90 days from the date of advice by BPCL/IOCL and shall be required to establish
necessary manufacturing / Inspection facilities to the satisfaction of BPCL/IOCL, failing which,
necessary action may be initiated to cancel their enlistment and tender submitted shall be
deemed to be null and void. EMD as well as the Technology Transfer Fee in such case will be
forfeited.

3. Changes In Technology :

Any changes, which may be incorporated in the technology by IOCL/BPCL from time to time,
shall be deemed as being part of the technology and binding on the successful tenderers.

4. Use Of Technology:

IOCL/BPCL reserve the right to bar any tenderer who has obtained technology transfer, from
the use of technology at its discretion and any subsequent use of the same by the tenderer
shall be treated as unauthorised and illegal.

OITC approved vendors for the Supply of Safety Caps

SR. LIST OF APPROVED SAFETY CAP CONTACT DETAILS IDENTIFI

NO MANUFACTURERS CATION
. MARK
1 M/s Adinath Industries Mr. Gautam Jain 9811154680 AD
C-9/2, DLF City, Phase I, Mr. Gaurav Jain 9810060890
C-9/2, DLF City Phase-I, Mr. Umesh Pandey 9871578866
Sukhchain Marg, Gurgaon, [email protected];
Haryana-122002
2 M/s Cris Cap Safety Equipments Mr. Kumar Bijlani (7738528099; CCSE
A-4, Sheel Apartments, Plot 9821081683)
598/99, 16th Road, Bandra (W), [email protected];
Mumbai – 400 050.

Page 3 of 6
TENDER NO:1000342012 ANNEUXURE-IV
TECHNICAL SPECIFICATIONS
3 M/s India Plastic Industries Mr. S.S. Patil -9892457783 IPI
Near Saraon , Opp New Sharda [email protected];
Mill,
MIDC Manpada Road
Dombivali (E) - 421 201
Distt : Thane
4 M/s Indo Plast Industries, Mr. Prashant Patil - 09892692331 INDO P.
W-189, M.I.D.C., Phase II [email protected];
Dombivli (East) - 421 204
Distt : Thane (M.S.)
5 M/s Jagdamba Engineering Pvt Mr. Janki Ram / Mr. Ashwin JAG
Ltd. D 165 7 166, Phase III, IDA 9849027815
Jeedimetla, RR Distt (A.P)–500 [email protected];
055.
6 M/s Nirmal Plastics Industries Mr. Mahendra Patni NP
Unit no. 116, A to Z Industrial (9821242260)
Estate, Ganpatrao Kadam Marg [email protected];
Lower Parel, Mumbai – 400 013.
7 Mr. Jitendra Jha [09433014957] NG
M/s N.G. Trexim Pvt Ltd
Mr. Naresh Kothari [9831028003]
29-B, Ravindra Sarani
G.D. Kothari, Director
Room No. 1 E, 3rd Floor,
[email protected];
Kolkata – 700073.
[email protected]
8 M/s Parasnath Enterprises Ms. Anita Wadhwa -9560394909 PN
31, Rajendra Park, Mr. Siddhartha Jain - 9810060887
Pusa Road, New Delhi – 110 060 [email protected]
9 M/s Reliable Enterprises Mr. N.S. Vaid - 9821213908 RE
56, Rajaji Industrial Estate, [email protected]
Gr. Floor , P.K. Road,
Mulund (W), Mumbai – 400 080.
10 M/s Reliable Engineers Mr. S.S. Bhalla – 9870003908
Unit No. 23, Ashok Industrial [email protected]; REN
Estate,
L.B.S. Marg, Mulund (W)
Mumbai 400 080.
11 M/s Reliable Plastics Mrs. Shyamli Sood- 9820899481 RP
52, Raja Industrial Estate, Off PK [email protected]
Road, Mulund (W)
Mumbai – 400 080
12 M/s Sneha Plastics Mr. Shivkant Dalmia SP
Plot No. 184 & 185, (09391017811)
S.V.C.I.E., Jeedimetla [email protected];
Hyderabad – 500 055.

Page 4 of 6
TENDER NO:1000342012 ANNEUXURE-IV
TECHNICAL SPECIFICATIONS
13 M/s Super Plastic Industries Mr. Rajendra S. Patil -9821478420 SPI
Gala No 2, Mhatre Pada, [email protected]
Opp. W-118, MIDC Phase II, n
Near Technocraft Co.,
Sonarpada,
Dombivali (E) – 421 204.
14 M/s Unison Auto Industries Mr. Gulab Jham : 09820024648 UAI
Plot No. D-15, Phase II, Sangita Patil - 9773203267
MIDC Industrial Area , [email protected]
Dombivali (E) – 421 203. [email protected]
Distt : Thane
15 M/s Techno Industries, Mr. R. Biswas : 09903057502 TI
AE-456, Salt Lake City , [email protected];
Kolkata – 700064
16 M/s Techno Impex Mr. T. Biswas: 9433033026 TIM
Helabhattala, Hatiara Road, [email protected]
Opp. Sagar Gramin Bank,
Kolkata – 700 059
17 M/s Nirmal Products Mr. Siddharth M. Patni – NPR
C-704, Raheja Sherwood, Western Mobile : 9820444731
Express Highway, Behind “The Email :
Hub” Mall, Goregaon (East), [email protected]
Mumbai – 400 063
18 M/s P.R. Plasto Contact Person: Mr. Pawan Kharat PRP
B-1-15, Ram Girdhar Industrial Mobile. No.: 8805958010
Estate, Vithalwadi Station Road, Email
Opp. Reliance Petrol Pump, ID: [email protected]
Ulhasnagar, Thane 21003.
19 M/s Prasad Plastics Contact Person : Manoj Prasad, PP
U-83, MIDC Area, Hingna Road, Proprietor
Nagpur – 440016 Mobile – 9823280591,
Email- [email protected]
20 M/s Shivam Polymers Contact Person : Mr. Ajit Dalal SPS
Plot No. 3, Assoti Piyala Road, Mobile – 9643854148
Balabgarh, Faridabad Email :
Haryana – 121004 [email protected]
21 M/s K.P. Abrasives (P) Ltd Contact Person : Mr. Akhil KP
KPI Building, Street No.8, Saraswat
Sarurpur Industrial Area,Sohna Mobile – 9810413499
Road, Faridabad Haryana – Email : [email protected]
121005
22 Vivek Plastics Contact Person : Mr Anil VP
No. 113, New Unique Industrial 7303461856
Estate Dr RP Road, Mulund (West) Email: [email protected]
Mumbai 400080

Page 5 of 6
TENDER NO:1000342012 ANNEUXURE-IV
TECHNICAL SPECIFICATIONS
23 M/s Paras Plastic , Gala No 9-15 Contact Person :Paras Shah PP
Pooja Industrial estate Mobile :09820073698
Near Golani Naka, Waliv [email protected]
Vasai(E), Thane -401208
24 M/s Plasto India Contact person: Neeraj Kakkar PI
B-222, Sector 4 [email protected]
DSIIDC, Bawana, Delhi- 110036 8800296369 , 9871908710
25 M/s Robin Impex Pvt Ltd, Mr. Satendra Rana RI
RZ 34, Saibaba Enclave, 8130892134
Tehsil Road, Najafgarge, New [email protected]
Delhi.
26 M/s Right Vision Pvt. Ltd. Contact Person: BP Bharti RIPL
A-4/4, Sector 80, Phase-II, 9810526627
Noida- 201305 [email protected]
27 M/s K.R. Techno Plast Contact Person: Pramod Kumar KR
91/1, Sikhara Road, Industrial Area 9310836933
Modi Nagar, Ghaziabad-201204 [email protected]
28 Maksa Industries Contact Person: Mr. Kuldeep Singh MI
Plot no. 30-A1, Sector-II, SIDCUL, 9897998237
Haridwar, UK [email protected]

29 Swastik Plastics Contact person: Mr. Naveen SPK

Plot no. BL-8A, Sector-13, GIDA, Rungta
Gorakhpur U.P. 9415210340
[email protected]
30 Itech Plast India Pvt. Ltd. Contact Person: Mr. Parag Shah ITP
Plot no. 107/108, Shampara, 9099925052
Bhavnagar [email protected]
31 Girraj Enterprises Contact Person: Mr. Vipin Dalal GE
Vill-Piyala, P.O. Asaoti, Teh- 9717517131
Ballabgarh, Dist-Faridabad [email protected]
32 Tanot Polymers Pvt. Ltd. Contact Person: Mr. Ajit Singh TPS
Vill- Piyala, Piyala-Dundsa road, 9911260467
Ballabgarh, Faridabad [email protected]
33 L.M. Enterprises Contact Person: Mr. Yuvraj LME
Plot No. B-57, STICE, Musalgaon, Pardeshi
Sinnar, Nashik-422103 9075756464/ 9822514989
[email protected]

Page 6 of 6
CRFQ No. 1000342012 ANNEXURE VI
TERMS & CONDITIONS OF AGREEMENT

TERMS & CONDITIONS OF AGREEMENT FOR

PROCUREMENT OF SC VALVES

1. MATERIAL TO BE SUPPLIED

(a) The successful tenderers on whom Contract/ Purchase Order is placed

shall duly supply SC Valves manufactured as per IS:8737 (latest revision)
and BPCL drawing to the Corporation as per the rate and delivery
schedule specified in the Contract/ Purchase Order placed by the
Corporation on the successful tenderer.

(b) The successful tenderer shall ensure that the SC Valves meant for supply
to BPCL are manufactured following the quality control/inspection
procedures prescribed by BIS & PESO and/or any written instructions
given by BPCL.

(c) BPCL reserves the right to refuse accepting the delivery of SC Valves that
have been manufactured more than 4 months before the date of supply.

(d) This is basically a rate contract and quantities are not guaranteed. The
contract placed on successful tenderers may be extended/repeated
at sole discretion of BPCL for a further period of up to 3 months
including increasing the contract quantity calculated on prorata
basis on repeat order basis, at the same terms and conditions. The
successful tenderer shall be bound to accept such a repeat order.

2. SUPPLY AND PERFORMANCE GUARANTEE

(a) The successful tenderer, within 10 days of placement of Letter of
Acceptance shall agree to deposit an amount of Rs. 10 lakhs or 5% of the
order value, whichever is lower, with BPCL for Supply and Performance
Guarantee. This amount shall have to be deposited by way of crossed
A/c Payee demand draft drawn on any Nationalised or scheduled
bank in favour of M/s. Bharat Petroleum Corporation Ltd and payable
at Mumbai. No interest is payable by BPCL on the amount for Supply and
Performance Guarantee so collected. Those successful tenderers desiring
to convert EMD (if submitted by way of DD) to Supply & Performance
Guarantee can send a request letter for our consideration.
(b) Since contract shall be placed bidder-wise, Supply and Performance
Guarantee shall have to be deposited for each S C Valve
manufacturer separately.

(c) Supply and Performance Guarantee shall be refunded only after the expiry
of the guarantee period of the SC Valves supplied by the successful
tenderer. BPCL shall be entitled to deduct from this amount any loss or
damage which BPCL may be put to by reason of any act or defective SC
Valves, Price Reduction (PR) or any other liabilities or default recoverable
by BPCL from the successful tenderer and to call upon the successful

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CRFQ No. 1000342012 ANNEXURE VI
TERMS & CONDITIONS OF AGREEMENT

tenderer to maintain the amount at the original level by making further

deposits.

3. SET OFF

Any sum of money due and payable to the successful tenderer (including the
supply and performance guarantee amount returnable to him) under the
Contract, may be appropriated by BPCL against any claim arising under the
Contract against the successful tenderer.

4. PRICE
(a) The basic price payable per SC Valve in a particular month shall be
calculated by adding escalation (or subtracting de-escalation, as the case
may be) for that particular month to the quoted/negotiated basic price and
shall include all applicable duties, taxes (barring GST), transit insurance (if
Successful tenderer desires to do so), loading & unloading charges and
any other incidental charges and such other duties and levies as may be
imposed for sale and delivery of the said Valves. Only GST as applicable
and declared by the successful tenderer and transportation charges
quoted shall be payable extra.
(b) Price escalation/de-escalation in the basic price of SC Valve shall be
based on the changes in the Basic price of High Grade Zinc at Tarapur
(Mumbai) as declared by M/s. Hindustan Zinc Ltd., and basic price of
Copper Cathode (Full) at Tarapur as declared by M/s Hindustan Copper
Ltd. and determined as per the following formula:
For every one rupee increase or decrease or part thereof in the
basic price of Copper Cathode and High Grade Zinc per kg at
Mumbai, the unit basic price of the SC Valve will increase or
decrease proportionately @ Rs. 0.13 (thirteen paisa) and @ Rs.
0.09 (nine paisa) respectively plus applicable GST on SC Valve
@ GST rate applicable for raw material less GST rate on SC
Valve actually payable by the successful tenderer in that
particular month in case the latter is less than the former;
otherwise zero.

For the purpose of calculating escalation/de-escalation, the difference in

basic price of High Grade Zinc and Copper Cathode per kg at Mumbai as
well as GST rate as applicable for raw material less GST rate on SC
Valves actually payable by the successful tenderer as on 01/11/2019 and
that prevailing on the first day of each qualifying month shall be
considered.
(c) Price escalation/de-escalation shall be determined every month, based
on the High Grade Zinc and Copper Cathode (Full) prices on Valves ruling
as on the 1st day of the particular month.
(d) The above mentioned escalation/de-escalation formula takes into account
the effect of changes in the price of high grade zinc and Copper Cathode
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CRFQ No. 1000342012 ANNEXURE VI
TERMS & CONDITIONS OF AGREEMENT

Full on SC Valve. Escalation/ de-escalation on any other account will not

be permitted.

5. TAXES AND DUTIES:

Taxes, duties and freight shall be payable over and above the basic price as
follows:
5.1. Goods and Services Tax (GST):
All Vendors shall have GST registration in the concerned State from
where he intends to supply the goods. Vendor shall declare the source
location of supply and shall provide their GSTN number in the quotation.
Vendor shall provide HSN code of the goods and corresponding GST rate
for the same.
GST as applicable by the Vendor at the time of delivery within scheduled
delivery period will be payable by BPCL.
Vendor shall submit the TAX Invoice, for BPCL to claim the Input Tax
Credit of the GST paid by the Vendor, wherever applicable.

The Vendor shall take steps viz uploading invoice in GSTR 1, payment of
the tax liability on the said invoices and filing of Returns etc. and comply
with all the requirements of applicable laws including GST laws for the
time being in force, to enable the OWNER to avail tax credit/s including
input tax credit. Any loss or non-availability of input tax credit by the
OWNER due to non-compliance of applicable tax laws including but not
limited to GST laws in force or otherwise, on the part of VENDOR, an
amount equivalent to any tax liability accruing to the OWNER and/or to
the extent of any loss accrued to the OWNER shall be deducted from the
payment due to the VENDOR or shall be reimbursed by the VENDOR, as
the case may be, till such default is either rectified or made good by the
VENDOR and the OWNER is satisfied that it is in a position to claim valid
input tax credit within the time-lines as per applicable laws.

Any cost, liability, dues, penalty, fees, interest as the case may be, which
accrues to the OWNER at any point of time on account of non-compliance
of applicable tax laws or rules or regulations thereof or otherwise due to
default on the part of VENDOR shall be borne by the VENDOR. An
amount equivalent to such cost, liability, dues, penalty, fees, interest as
the case may be, shall be reimbursed by the VENDOR within 30 days.
Any GST as may be applicable on such recovery of amount shall also be
borne by VENDOR and same shall be collected by the OWNER.

5.2. Freight :
Freight: Freight shall be payable after receipt of the Material(s) at the site
as per the firm freight charges quoted by the successful tenderer in the
price bid.

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CRFQ No. 1000342012 ANNEXURE VI
TERMS & CONDITIONS OF AGREEMENT

5.3. New Statutory Levies:

All new statutory levies leviable on sale of finished goods to owner, if
applicable are payable extra by BPCL against documentary proof.

5.4. Variation in Taxes/Duties:

Any increase/decrease in all the above mentioned statutory levies on the date
of delivery during the scheduled delivery period on finished materials will be
on BPCL's account. Any upward variation in statutory levies after contractual
delivery date shall be to successful tenderer’s account.
Parties shall have to produce Gazette notification, proof showing that duty
charged is totally on account of GST revision and not due to any change in
assessable value or otherwise, and invoice us accordingly. Same principle will
be observed for de-escalation also.
However, any increase in the rate of GST on SC Valves due to change in the
annual Turn-over or full/partial withdrawal of GST, if any, to the successful
tenderer shall not be reimbursed.

6. PAYMENT

The tax invoice/s along with following documents shall have to be

submitted to BPEC Kharghar for payment -
a) a copy of Goods Receipt Note (GRN) issued by BPCL LPG Plant/s
b) Lorry Receipt
c) Packing List
d) BIS Test certificate for SC Valve

More than one invoice under a cover of consolidated / commercial tax

invoice is not allowed.

Payment terms shall be 15-days which implies that payment shall be

released by BPCL to vendors within 15 (fifteen) days, on ‘best-effort’ basis,
after 15 days of receipt of invoice along with all enclosures as mentioned
above, reaching BPEC in reasonable time. The payment shall be done
through National electronic fund transfer (NEFT).

However, in case the successful tenderer delivers a consignment that is

fully/partially not accepted by the plant, then payment for such quantity that is
not accepted by the plant shall be passed only after the defective lot is
cleared to the satisfaction of the plant.

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CRFQ No. 1000342012 ANNEXURE VI
TERMS & CONDITIONS OF AGREEMENT

7. QUALITY CONTROL / SUSPENSION

Please refer the attached Quality Discipline Guidelines (QDG) for various
Quality related required compliances

(a) The successful tenderer is required to strictly adhere to the quality

control/inspection procedures stipulated by Bureau of Indian Standards
(BIS) and Petroleum and Explosive Safety Organization (PESO), and
advice given by the Corporation and Oil Industry Technical Committee
(OITC) from time to time.
Stage-wise inspection should be carried out as per scheme of testing of
BIS. Manufacturer should employ manpower required at each stage of
inspection such that they at least have minimum specified
skills/qualifications.
The in-charge of quality control & production department and quality
supervisors should possess minimum qualification of diploma in
Engineering. Information should be promptly forwarded to BIS and PESO
in case these key persons looking after critical aspects of production and
quality control of LPG Cylinders are changed. Any change in the Plant &
Machinery should be with prior approval of BIS and PESO.
(b) Without prejudice to the other provisions of the Contract, BPCL reserves
the right to order suspension of production and supplies of the Cylinders
by the successful tenderer in case any lapse in quality is detected by
members of OITC or by officers/ representatives of BPCL, or if any lapse
is reported by any statutory authority, quality complaint from any source,
malpractice detected by any authority etc. at any time during the currency
of the Agreement.
(c) Such suspension orders will be intimated in writing by email and/or
Registered Post either by the Corporation or by OITC to successful
tenderer. On receipt of suspension order, successful tenderer shall carry
out detailed root-cause analysis for failure of the SC Valve /quality
problem.
Corrective and preventive actions to be taken for a particular type of failure
should be identified and implemented by the successful tenderer. The
successful tenderer shall submit an action-taken report, duly verified by
BIS, to BPCL. BPCL shall revoke the suspension based on the adequacy
of this action-taken report (Please refer attached QDG for complete
details).
The successful tenderer will be required to complete all actions necessary
to obtain clearance from Corporation/OITC for resumption of production
and dispatch at the earliest but not later than number of days as specified
in the QDG, from the date of suspension.
If request for the clearance from Corporation/ OITC is not applied for within
the said period as specified in the QDG, the Corporation shall have the
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CRFQ No. 1000342012 ANNEXURE VI
TERMS & CONDITIONS OF AGREEMENT

rights solely at its discretion to cancel the remaining order quantity and
forfeit the supply and performance guarantee amount without prejudice to
any other right as may be available to the Corporation both under law and
the contract terms contained in this agreement for the recovery of the
damages.
(d) Despite the order of suspension, if the successful tenderer produces
and/or dispatches any SC Valve, the Corporation shall be entitled to refuse
taking delivery of such consignments and the successful tenderer shall not
be entitled to claim any damage or compensation for any loss that may
occur to him, from BPCL on account of refusal to accept such
consignment. In such cases BPCL shall take necessary action which may
be deemed fit against the successful tenderer.
(e) Whenever the successful tenderer is under suspension, the call-off/
allocation for the suspended party may be pruned to the extent of
undelivered quantity against that call off/allocation at the sole discretion of
BPCL. Extra cost, if any, borne by BPCL while procuring (from other
suppliers) and/or placing such shortfall quantity to the short-
supplied plant, as outlined above, shall be recovered from the
defaulting successful tenderer as per clause 11 below.
(f) Ifthe successful tenderer is under suspension at the start of a month/time
of placing call-off or PO, then the quantity calculated based on the
fortnightly average order quantity (total order quantity/26) for the number
of fortnight or part thereof for which the party continues to be under
suspension, may be pruned at the sole discretion of BPCL. Extra cost, if
any, borne by BPCL while procuring (from other suppliers) and/or
placing such pruned quantity, as outlined above, to the designated
plant shall be recovered from the defaulting vendor as per clause 11
below.
(g) If the successful tenderer is a common supplier for one or more OMCs,
and in the event of their suspension by one OMC, then it shall be
construed as suspension by BPCL also. However revocation will be done
by individual OMC on Industry basis.
(h) As and when any changes in Quality Discipline Guidelines (QDG) duly
approved by Oil Marketing Companies (OMCs), same shall come into
force with immediate effect and shall be binding on all the bidders to whom
LOIs/ LOAs/Purchase Orders are issued.

8. DELIVERY SCHEDULE / REVISION BEFORE EXPIRY OF DELIVERY

SCHEDULE:
(a) Based on the actual requirements, BPC will be placing the call-offs (also
called PO or allocations) from time to time. The successful tenderer
shall be bound to accept call-offs up to 130% of the prorata quantity
(prorata quantity = contract quantity/3). In case BPCL requires
additional supplies (over and above the said 130% prorata level) during

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CRFQ No. 1000342012 ANNEXURE VI
TERMS & CONDITIONS OF AGREEMENT

any period , then it can place call-offs for such additional quantities after
getting a written confirmation from the successful tenderer.

(b) The successful Tenderer shall supply SC Valves strictly in accordance

with the delivery schedule mentioned in the call-offs/PO/ allocation. The
successful Tenderer shall note that the date of receipt of SC Valves at the
destination i.e. the Location of the Corporation as advised by the
Corporation shall be considered as the date of completion of the supply as
per the Order. In short the actual delivery shall mean the date of receipt of
SC Valves at the location. Successful tenderer shall have to furnish a
‘Delivery Completion Report’ on monthly basis in the format given by
BPCL along with a copy of proof of receipt of material/receipted delivery
challans, for all supplies made during that month, by the 10th day of the
succeeding month or by the 3rd working day after the extended
period, in case of extension.

(c) In the event of the successful Tenderer anticipating difficulty to meet the
delivery schedule for reasons that the successful tenderer thinks are not
attributable to him, he/she should submit a written request for extension, in
case he desires the extension, explaining the reasons for the delay. It will
be the Corporation’s sole discretion to accept or reject the request. The
Corporation will evaluate the request of the successful Tenderer and in
case the Corporation is satisfied, the Corporation may grant a suitable
time extension with the applicable Price Reduction (on the portion that
would be delivered late) @ 1/3% for each day of extension (or part
thereof) subject to a maximum 5% and advise the revised delivery
schedule, in writing. The decision of the Corporation in this regard will be
final and binding on the successful Tenderer.

(d) Payment for delayed/late supplies shall be made at the rate on which call-
offs/PO/allocations have been issued and date of delivery shall be
irrelevant for the purpose of deciding the rate of SC Valves. This shall also
apply to cases where time extension for delivery has been granted by
BPCL.

(e) Holiday listing of vendor shall be done as per the holiday listing policy.

9. FAILURE AGAINST DELIVERY SCHEDULE AND PRUNING &

REALLOCATION FOR QUANTITIES UNDELIVERED:
(a) BPC shall review the supply position after completion of the Delivery
Schedule. If the successful Tenderer fails to adhere to the said Delivery
Schedule as per para 8(a) above or Revised Delivery Schedule which may
be given as per 8(c) above, the following provisions shall apply:

(i) BPC may prune and reallocate the quantities short supplied by the
Successful Tenderers who could not meet the schedule given.

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CRFQ No. 1000342012 ANNEXURE VI
TERMS & CONDITIONS OF AGREEMENT

(ii) Alternatively BPC may consider accepting late delivery of

consignment, based on request by such Successful Tenderer who
could not meet the schedule given. Payment in such event of non-
supply of SC Valves within the stipulated period of one-month
from the date of call-off/call-up, a price reduction @1/3% for each
day of extension (or part thereof) subject to a maximum of 5%
shall be applicable. For such delayed delivery, payment shall be
made as per clause 8 (d) above.

(iii) In the event of delay beyond a month from the scheduled delivery
date, a penalty of 5% shall be charged on the entire undelivered
quantity and such quantity shall be pruned and reallocated.

(iv) However if the successful tenderer informs the corporation about their
inability to supply the material within 7 days of placing of call-off/PO
then penalty of 2% shall be charged on the quantity surrendered. This
surrendered quantity shall be pruned & reallocated and the defaulting
vendor shall also be liable to pay the additional cost, if any, incurred by
the Corporation to procure this quantity from an alternate source.

(v) Extra cost, if any, borne by BPCL while procuring (from other
suppliers) and/or placing such shortfall quantity to the short-
supplied plant, as outlined in (i) & (iii) above, shall be recovered
from the defaulting vendor as per clause 11 below.

(vi) Additional orders arising out of reallocation of pruned quantities shall

be offered to performing bidders, provided they meet the following
conditions:

i. They are performing satisfactorily under the

current contract.
ii. They are willing to supply this additional quantity
at the floor rate of the state(s) in which the
quantities have to be supplied.

Pruned quantity in each state would be suitably allocated amongst one or

more bidders who are ready to accept the offer for additional supplies, as
above.
The reallocation of pruned quantities would be done by the corporation as and
when required. For this purpose, the performing bidder would be the one who
a) Has supplied the entire called off quantity under the running contract OR
The difference between his total contract quantity and the total cylinders
actually delivered by that bidder and divided by the months left in the
contract period, is less than the maximum supply made by the bidder in
any month during the contract period.

b) Defaulting bidders against whom pruning is being done shall not be

considered for re-allocation.
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CRFQ No. 1000342012 ANNEXURE VI
TERMS & CONDITIONS OF AGREEMENT

c) Pruned quantity on account of defaulting bidders shall not be

allocated to any of the other bidders having same PAN number (as
that of the defaulting bidder).

Additional quantity allocated to bidders due to pruning and re-allocation or risk

purchase and re-allocation is over and above the initial allocated quantity of
the bidder (both existing and upcoming new bidder).
Performance till the month previous to the one in which the offer for additional
quantity is being made, would be considered for determining this eligibility
under (a) , (b) & (c).
BPCL decision in regard to Pruning & Reallocation on case to case basis and
the methodology followed shall be final.
Pruned quantity in each state would be equally allocated amongst all the
performing bidders who are ready to accept the offer for additional supplies at
floor rate, as above, subject to condition explained below.

However, in case the additional order per bidder calculated as above,

becomes an unviable quantity (i.e. less than 10000 SC Valves per bidder)
then total requirement for that state/plant would be distributed amongst lesser
number of bidders such that minimum order on a bidder is 10,000 S.C Valves.
Qualifying bidders eligible for order shall be chosen in the ascending order of
contract quantity allotted to them in the running contracts for SC Valves. For
this purpose.

Allotted Contract qty = Original Contract qty + contract qty

added on a/c of previous re-allocation due to pruning -
pruned quantity of the bidder.

In case part or full pruned quantity is still unallocated after the afore-
mentioned exercise then BPC reserves the right to reallocate the balance
quantity to other successful tenderers and/or procure it on risk purchase
basis as per clause 11 below.
(b) The limitation on order quantity will not be applicable for the reallocation of
pruned quantities.

(c) BPCs’ decision in regard to Pruning & Reallocation on case to case basis
and the methodology followed shall be final.

(d) The limitation on order quantity will not be applicable for the reallocation of
pruned quantities.

(e) BPCs’ decision in regard to Pruning & Reallocation on case to case basis
and the methodology followed shall be final.

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CRFQ No. 1000342012 ANNEXURE VI
TERMS & CONDITIONS OF AGREEMENT

(f) Holiday listing of vendors shall be done as per the holiday listing policy.

10. PENALTY FOR FAILURE TO SUPPLY

(a) In the event of full or partial failure to supply (with or without time
extension), penalty @ 5% of the NDP shall be levied on the entire
undelivered quantity.

(b) Successful tenderer shall not be entitled to claim waiver from PRICE
REDUCTION and/or PENALTY because of the Pruning & Re-allocation
of the short supplied quantities as described in (9) above.

11. RISK PURCHASE

(a) In case the Successful tenderer fails to supply the material as per the
delivery schedule/revised delivery schedule due to any reason
whatsoever, including suspension, BPCL reserves the right to
procure similar material at the Successful tenderer’s risk, cost and
responsibility from other sources or even from the same tenderer (on
successful tenderer’s request and at BPCL’s sole discretion). The
successful tenderer shall have to bear the differential cost between
what would have been payable to him/her and the cost actually paid by
BPCL for such procurement and/or placement of such shortfall quantity
to the short-supplied plant.

(b) In case the party is under suspension at the start of the month, no
orders will be released. However, proportionate order quantity due from
the party, as described in clause 7(f) above, shall be procured from
other parties under risk purchase.

(c) Such penalty shall be levied over and above the PENALTY recoverable
from the party on account of such non-delivery of material.

(d) If due to any breach committed by the Supplier, the order is terminated,
the Supplier will be liable to make good the loss or damage suffered by
the BPCL in line with clause (a) above.

(e) Holiday listing of vendors shall be done as per the holiday listing policy.

12. RECOVERY OF OUTSTANDING AMOUNTS:

Whenever, any claim against Successful Tenderer for payment of a

sum of money arises out of or under the contract, BPCL shall be
entitled to recover such sums from any sum then due or when at any
time thereafter may become due from the Successful Tenderer under
this or any other contract with BPCL and should this sum be not
sufficient to cover the recoverable amount of claim(s), the successful
tenderer shall pay to BPCL on demand the balance remaining due.
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It is also agreed and understood that for the purpose of calculating the
damages recoverable, it will be assumed that the contract continued to
remain valid even after expiry of the contract period and BPCL can
recover such amounts from the pending bills of/Supply and
Performance Guarantee amount deposited by the Successful
Tenderer.

13. FORCE MAJEURE

Circumstances leading to force majeure -

(a) Act of terrorism;

(b) Riot, war, invasion, act of foreign enemies, hostilities (whether war be
declared or not), civil war, rebellion, revolution, insurrection of military or
usurped power;
(c) Ionising radiation or contamination, radio activity from any nuclear fuel
or from any nuclear waste from the combustion of nuclear fuel, radioactive
toxic explosive or other hazardous properties of any explosive assembly or
nuclear component;

(d) epidemics, earthquakes, flood, fire, hurricanes, typhoons or other

physical natural disaster, but excluding weather conditions regardless of
severity; and

(e) freight embargoes, strikes at national or state-wide level or industrial

disputes at a national or state-wide level in any country where Works are
performed, and which affect an essential portion of the Works but
excluding any industrial dispute which is specific to the performance of the
Works or the Contract.
For the avoidance of doubt, inclement weather, third party breach, delay in
supply of materials (other than due to a nationwide transporters’ strike) or
commercial hardship shall not constitute a Force Majeure event.

• Notification of Force Majeure -

Contractor shall notify within [10(ten)] days of becoming aware of or the
date it ought to have become aware of the occurrence of an event of Force
Majeure giving full particulars of the event of Force Majeure and the
reasons for the event of Force Majeure preventing the Affected Party from,
or delaying the Affected Party in performing its obligations under the
Contract.
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• Right of either party to terminate -

If an event of Force Majeure occurs and its effect continues for a period of
180 (one hundred eighty days) or more in a continuous period of 365
(three hundred sixty five) days after notice has been given under this
clause, either Party may terminate the Contract by issuing a written notice
of 30 (thirty) days to the other Party.

• Payment in case of termination due to Force Majeure -

The Contract Price attributable to the Works performed as at the date of
the commencement of the relevant event of Force Majeure.

The Contractor has no entitlement and Owner has no liability for:

a) Any costs, losses, expenses, damages or the payment of any part of

the Contract Price during an event of Force Majeure; and
b) Any delay costs in any way incurred by the Contractor due to an event
of Force Majeure. Time extension for such cases will be worked out
appropriately.
14. RAW MATERIAL
(a) The The successful tenderer is exclusively responsible for procurement
of all raw materials of SC valves, conforming to applicable specifications
to meet the supply as per contracted delivery schedule. SC valves to be
procured from authorized parties only.

(b) Rubber components and other bought-out items shall be thoroughly

tested as per the test procedure given in the ‘Technova’ technology
details provided by IOCL. The successful tenderer is also required to
furnish the following information as and when required.

a. Results of test carried out by rubber component manufacturers

b. Results of rubber components tests carried out by the successful
tenderer
c. Results of tests carried out by the successful tenderer on other bought-
out items, if any.

(c) In respect of the components which are required for the manufacture of
SC Valves, the successful tenderer shall from time to time during the
currency of this Contract inform BPCL, the list of such items including the
names and addresses of the suppliers of such items and the measures
taken for ascertaining the quality assurance of such items.

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(d) BPCL reserves the right to specify the name of reputed/reliable/

established vendors from whom raw materials and components shall be
procured. In such case, successful tenderer shall procure such raw
materials and components from BPCL approved parties only.

15. INSPECTION

(a) Materials shall be inspected by BIS before dispatch of materials. As per

statutory requirement, the successful tenderer shall prepare Test
Certificates, duly signed by BIS. However, arranging and providing
inspection facilities is entirely successful tenderer’s responsibility and in
no way shall affect the delivery schedule.
(b) The inspection shall be carried out as per the relevant standards/scope of
inspection provided along with the Tender Enquiry/Purchase Order.
(c) BPCL may, at its own expense, have its representative(s) witness any test
or inspect the SC Valves/inspection gauges/test set-ups. In order to
enable BPCL’s representative(s) to witness the tests/ inspections at the
successful tenderer's works, all required facilities shall be provided by the
successful tenderer at his costs. BPCL will advise the successful tenderer
in advance whether it intends to have its representative(s) be present at
any of the inspections.
(d) Even if the inspection and tests are fully carried out, the successful
tenderer shall not be absolved from its responsibilities to ensure that the
Material(s), raw materials, components and other inputs are supplied
strictly to conform and comply with all the requirements of the Contract at
all stages, whether during manufacture and fabrication, or at the time of
Delivery as on arrival at site or consumption, and during the defect liability
period. The inspections and tests are merely intended to prima-facie
satisfy BPCL that the Material(s) and the parts and components comply
with the requirements of the Contract. The successful tenderer’s
responsibility shall also not be anywise reduced or discharged because
BPCL or BPCL’s representative(s) or Inspector(s) shall have examined,
commented on the successful tenderer’s drawings or specifications or
shall have witnessed the tests or required any chemical or physical or
other tests or shall have stamped or approved or certified any Material(s).
(e) Although material approved by the Inspector(s), if on testing and
inspection after receipt of the Material(s) at the location, any Material(s)
are found not to be in strict conformity with the contractual requirements
or specifications, BPCL shall have the right to reject the same and hold
the successful tenderer liable for non-performance of the Contract.

16. TEST CERTIFICATES

(a) As per statutory requirements, the successful tenderer shall prepare at

least three copies of test certificates for SC Valves to be supplied, duly
signed by the BIS. The distribution of copies is as under :
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 First Copy - To the consignee (Plant) along with a list of

Serial numbers of SC VALVE despatched
 Second Copy - To LPG Equipment Department, Sewree
 Third Copy - Vendor Copy

(b) The successful tenderer is fully responsible for obtaining BIS test
certificates, for the SC Valves supplied by them, at their own cost. SC
Valves not accompanied by BIS test certificates shall not be accepted.

17. PACKAGING :

(a) Each lot of 200 Nos. (Two Hundred) Valves complete with Safety
Caps and thread protection caps shall be packed with appropriate packing
in dealwood boxes of adequate strength with necessary hoop iron straps,
both longitudinal and lateral, to withstand handling and transit damage by
road.

(b) Batch No. of all Valves packed in one carton should be in

sequence.

(c) The boxes should be marked legibly / labelled with following

information :

(i) Item- SELF CLOSING LPG VALVE - KOSAN

TECHNOVA TYPE.
(ii) Quantity packed.
(iii) Gross weight including wooden box.
(iv) Manufacturer's Name/Full Address
(v) Batch No./Nos.
(vi) Date of packing.
(vii) Month and Year of manufacture.

A copy of the Packing Slip with complete details of the contents of the box
duly signed by the successful tenderer's authorised representative will be
placed inside each box. Another copy is to be enclosed to the despatch
documents, recording the identification for the particular box.

Further, any damage or loss of Valves because of poor quality packing or

any other reason shall be recoverable from the successful tenderer as
decided by the Corporation.
The Corporation at its discretion may authorize alternate packaging at the
request of the successful tenderer. Such authorization must be obtained in
writing, in advance.

18. DESPATCHES

(a) All the SC Valves will be despatched by the successful tenderer by

road only, on freight pre-paid basis, in accordance with the
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instructions issued by the Corporation from time to time. The

consignments shall be sent on door delivery basis in full truck-
loads/part truckload including unloading and stacking at the receiving
location.

(b) The successful tenderer shall undertake transportation of SC Valves by

road only through established and reliable transporters.

(c) The successful tenderer, in their own interest may take out insurance
cover for each and every consignment to take care of any transit loss,
damage, shortage etc at their own cost. No payment shall be made by the
Corporation towards cost of insurance to the successful tenderer.

19. GUARANTEE

(a) The SC Valves shall be guaranteed by the successful tenderer for a period
of 24 months from the date of manufacture, against manufacturing defects.
(b) In the event of manufacturing defects being detected at the time of delivery
or within the guarantee period, the successful tenderer will be directly
informed in writing by the concerned Territory Office. The successful
tenderer will have the choice to inspect the SC Valves at the concerned
Territory office or supply new SC Valves as replacement against the
defective SC Valves within thirty days of despatch of such intimation, at
their own cost. In case of joint inspection, the successful tenderer will
have to supply new SC Valves as replacement against the defective SC
Valves within 30 days from the date of joint inspection. If the
manufacturer’s representative does not turn up for inspection within the
time stipulated by BPCL, the lot shall be treated as defective and
accordingly action shall be taken.
New SC Valves will have to be supplied as replacement against the
defective Valves segregated at the time of delivery or during guarantee
period as above or else the full cost of such Valves will be recovered from
the party. Additionally, a commercial penalty of Rs 5/- per defective SC
VALVE shall be levied to cover the administrative cost. Rectification of SC
VALVE shall not be permitted and defective SC Valves shall be crushed
and scrap and will be retained by BPCL.

20. TEMPORARY STOPPAGE

In case of temporary inability of BPCL to accept SC Valves, BPCL shall not be
held responsible for any loss/storage charges that the successful tenderer
may have to sustain and the Company shall not be required to make any
payment towards the SC Valves already manufactured or any other payment
on account of inventory carrying cost.

21. OBLIGATION TO SELL SC VALVES TO PUBLIC SECTOR

CORPORATION ONLY

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(a) The successful tenderer shall not engage in the manufacture, sale and
supply of 25.6 mm diameter SC Valves of ‘KOSAN TECHNOVA’ design
and as per technology provided by BPCL to any individual, firm or any
company other than the public sector oil companies engaged in Marketing
of LPG during or after the currency of this Agreement.

(b) The successful tenderer shall fulfil the commitments of the Corporation on
first priority.

(c) The successful tenderer shall also not export SC Valves of ‘KOSAN
TECHNOVA’ design manufactured by him except with the prior approval of
the Corporation in writing.

Disposal of scrap arising out of the manufacturing process will not be covered
under the above provisions. All scrap arising out of the manufacturing process
including whole SC Valves which are rejected (while testing/ certification) and
SC Valves rejected by the Corporation at the successful tenderer’s premises
may be disposed off by the successful tenderer, only after ensuring that such
items are deshaped in the presence of BIS Officer/ Corporation official so
that the same cannot be used. The successful tenderer shall maintain proper
records of all such rejections.

22. TERMINATION

Notwithstanding anything contained in the Contract, BPCL reserves the right

to cancel the contract/purchase order or any part thereof through a written
notice to the successful tenderer if:
(a) The successful tenderer fails to comply with the terms of this purchase
order/contract.
(b) The successful tenderer becomes bankrupt or goes into liquidation.
(c) The successful tenderer fails to deliver the goods on time and/or replace
the rejected goods promptly.
(d) The successful tenderer makes a general assignment for the benefit of
creditors.
(e) A receiver is appointed for any of the property owned by the successful
tenderer.
(f) If it is established that the SC Valve manufacturer has been indulging in
malpractice/ manufacture of spurious SC Valves/ unauthorised
manufacturing of SC Valves or on such other grounds that is considered
by the Corporation to be in contravention to the contractual obligation.
The Corporation’s right to so terminate the contract shall be without
prejudice to any other right and remedy available against the successful
tenderer including the right for recovery of damages if any from the
successful tenderer, and in the event of the Corporation so terminating
the contract, the Corporation shall not be liable to pay any compensation
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or damages in consequence of such termination to the successful

tenderer.
(g) SC Valve units are supposed to have a good track record and clear
credential in the past. If any unit is found indulging in any unauthorised
activities at any time, even in the past, then the Corporation shall have the
liberty to take appropriate action as deemed fit including rejection,
termination immediately on receipt of such information.
Upon receipt of the said cancellation notice, the successful tenderer shall
discontinue all work on the purchase order matters connected with it and shall
surrender incomplete SC Valves to the authorities designated by the
Corporation. BPCL in that event will be entitled to procure the requirement in
the open market and recover excess payment over the successful tenderer's
agreed price if any, from the successful tenderer and also reserving to itself
the right to forfeit the Supply and Performance Guarantee amount, made by
the successful tenderer against the contract. The successful tenderer is aware
that the said goods are required by BPCL for the ultimate purpose of materials
production and that non-delivery may cause loss of production and
consequently loss of profit to the BPCL. In this event of BPCL exercising the
option to claim damages for non-delivery other than by way of difference
between the market price and the contract price, the successful tenderer shall
pay to BPCL, fair compensation to be agreed upon between BPCL and the
successful tenderer. The provision of this clause shall not prejudice the right
of BPCL from invoking the provisions of price reduction clause mentioned
above.

23. ASSIGNMENT/SUB-CONTRACTING
The successful tenderer shall not sublet the contract or assign any part of the
order to any person/firm/company without prior written consent from the
Corporation.

24. ACQUIESCENCE OR WAIVER

Failure of the Corporation to insist upon any of the terms or conditions

incorporated in the Purchase Order or failure or delay to exercise any rights or
remedies herein, or by law or failure to properly notify successful tenderer in
the event of breach, or the acceptance of or payment of any goods hereunder
or approval of design shall not release the successful tenderer and shall not
be deemed a waiver of any right of the Corporation to insist upon the strict
performance thereof or of any of its or their rights or remedies as to any such
goods regardless of when such goods are shipped, received or accepted nor
shall any purported oral modification or revision of the order by BPCL act as
waiver of the terms hereof. Any waiver to be effective must be in writing.

25. ARBITRATION
Any dispute or difference whatsoever arising out of or in connection with
this Agreement including any question regarding its existence, validity,
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construction, interpretation, application, meaning, scope, operation or

effect of this contract or termination thereof shall be referred to and finally
resolved through arbitration as per the procedure mentioned herein
below:
(a) The dispute or difference shall, in any event, be referred only to a Sole
Arbitrator
(b) The appointment and arbitration proceedings shall be conducted in
accordance with SCOPE forum of Arbitration Rules for the time being
in force or as amended from time to time
(c) The Seat of arbitration shall be at Mumbai
(d) The proceedings shall be conducted in English language
(e) The cost of the proceedings shall be equally borne by the parties,
unless otherwise directed by the Sole Arbitrator.

In the event of any dispute or difference relating to the interpretation and

application of the provisions of commercial contract(S) between Central Public
Sector Enterprises (CPSEs)/ Port Trusts inter se and also between CPSEs
and Government Departments/Organizations (excluding disputes concerning
Railways, Income Tax, Customs & Excise Departments*), such dispute or
difference shall be taken up by either party for its resolution through AMRCD
as mentioned in DPEOM No.4(1)/2013-DPE(GM)/FTS-1835 dated 22-05-
018”.
(* The exclusion would also include disputes concerning GST, State
level Sales Tax / VAT etc though not mentioned explicitly).
26. CONFIDENTIALITY OF TECHNICAL INFORMATION
Drawing, specifications and details shall be the property of the BPCL and
shall be returned by the successful tenderer on demand. The successful
tenderer shall not make use of drawing and specifications for any purpose at
any time save and except for the purpose of BPCL. The successful tenderer
shall not disclose the technical information furnished to or organized by the
successful tenderer under or by virtue of or as a result of the implementation
of the Purchase Order to any person, firm or body or corporate authority and
shall make all endeavours to ensure that the technical information is kept
CONFIDENTIAL. The technical information imparted and supplied to the
successful tenderer by BPCL shall at all-time remain the absolute property of
BPCL.

27. COMPLIANCE OF REGULATIONS

Successful tenderer warrants that all goods/Materials covered by this order
have been produced, sold, dispatched, delivered and furnished in strict
compliance with all applicable laws, regulations, labour agreement, working
condition and technical codes and statutory requirements as applicable from
time to time. The successful tenderer shall ensure compliance with the above

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and shall indemnify owner against any actions, damages, costs and expenses
of any failure to comply as aforesaid

28. HOLIDAY LISTING:

(a) The following expressions used in this clause shall have the meaning
indicated against each of these, unless the context otherwise requires:

 Agency: “Party/Contractor/Supplier/Vendor/Consultant/Bidder/
Licensor” in the context of these guidelines is indicated as ‘Agency’;
“Party/Contractor/Supplier/Vendor/Consultant/bidders/Licensor” shall
mean and include a public limited company or a private limited
company, a joint venture, Consortium, HUF, a firm whether
registered or not, an individual, co-operative society or an
association or a group of persons engaged in any commerce, trade,
industry etc.
 Appellate Authority: “Appellate Authority” shall mean the concerned
functional Director of BPCL or any other authority nominated by
the C & MD. The Appellate authority shall be higher than the
“Competent Authority”.
 Competent Authority: “Competent Authority” shall mean the
authority, who is competent to take final decision for Banning of
business dealings with Agencies, in accordance with these
guidelines:
 The Competent Authority for a Procurement Department which
is initiating the Holiday Listing process should be the Regional
head (or) SBU / Entity head as the case may be relevant to the
said Procurement Department, but not below the level of General
Manager
 Corporation: “Corporation” means Bharat Petroleum Corporation
Ltd. with its Registered Office at Bharat Bhavan-I, 4&6 Currimbhoy
Road, Ballard Estate, Mumbai-400001.
 Corrupt Practice: “Corrupt Practice” means the offering, giving,
receiving or soliciting, directly or indirectly, anything of value to
improperly influence the actions in selection process or in contract
execution. Corrupt Practice” also includes any omission for
misrepresentation that may mislead or attempt to mislead so that
financial or other benefit may be obtained or an obligation
avoided.
 Fraudulent Practice: “Fraudulent Practice” means and include any
act or omission committed by a agency or with his connivance
or by his agent by misrepresenting/ submitting false documents
and/ or false information or concealment of facts or to deceive in
order to influence a selection process or during execution of
contract/ order;
 Collusive Practice : “Collusive Practice” amongst bidders (prior to

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or after bid submission)” means a scheme or arrangement

designed to establish bid prices at artificial non-competitive levels
and to deprive the Employer of the benefits of free and open
competition.
 Coercive Practice: “Coercive practice” means impairing or harming
or threatening to impair or harm directly or indirectly, any agency or
its property to influence the improperly actions of an agency,
obstruction of any investigation or auditing of a procurement
process.
 Officer-in-Charge: “Officer –in-Charge (OIC)” or “Engineer-in-Charge
(EIC)” shall mean the person (s) designated to act for and on
behalf of BPCL for the execution of the work as per requirement
of the concerned department.
 Malpractice : Malpractice means any Corrupt Practice, Fraudulent
Practice, Collusive Practice or Coercive practice as defined herein;
 Misconduct : “Misconduct” means any act or omission by the
Agency, making it liable for action for Holiday Listing as per these
guidelines
 Nodal Department: “Nodal Department” means the Department
primarily assigned with the role of overseeing the Holiday Listing
Process to ensure adherence to guidelines, maintaining, updating
and publishing the list of Agencies with whom BPCL has decided
to ban business dealings and shall be the Corporate Finance
Department.
 Vendor De-listment Committee: “Vendor De-listment Committee”
relevant to the procurement department which initiates the holiday
listing process would the same as the vendor enlistment Committee
as per DR&A of the concerned SBU/Entity.

(b) An Agency may be placed in Holiday List for any one or more of the
following circumstances for the period mentioned herein:

i. In the context of its dealings with the Corporation:

S. No Reasons for holiday listing Period of
holiday listing
1 Indulged in malpractices resulting in financial loss to the Corporation 15years
2 Submitted fake, false or forged documents / certificates 3years
3 Has substituted materials in lieu of materials supplied by BPCL or 15years
has not returned or has unauthorized disposed off
materials/documents/drawings/tools or plants or equipment supplied
by BPCL
4 Has deliberately violated and circumvented the provisions of labour 3years
laws/regulations/rules, safety norms, environmental norms or other
statutory requirements
5 Has deliberately indulged in construction and erection of defective 3years
works or supply of defective materials
6 has not cleared BPCLs previous dues if applicable 1year
7 Has committed breach of contract or has abandoned the contract 3years
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8 Poor performance of the Agency in one or several contracts 1year

9 Has not honoured the fax of award/letter of award/ Contract/ 1year
Purchase order after the same is issued by BPCL
10 Withdraws/revises the bid upwards after becoming the L1 bidder 1year
11 Has parted with, leaked or provided confidential/ proprietary 15years
information of BPCL to any third party without the prior consent of
BPCL

ii. Following additional grounds can also be reasons for Holiday Listing
of an agency:
S. No Reasons for holiday listing Period of
holiday listing
1 If the Agency is or has become bankrupt , OR is being dissolved OR 3years
has resolved to be wound up OR if proceedings for winding up or
dissolution has been instituted against the Agency
2 Any other ground, including transgression of Integrity Pact, which, in 3years
the opinion of the Corporation, makes it undesirable to deal with the
Agency; In the case of transgression of Integrity Pact, the same
should be substantiated by the verdict of the Independent External
Monitor

iii. In cases where Holiday Listing is proposed based on advice from the
Administrative Ministry, no show cause or formal decision by
competent authority will be required. The Nodal Department will
directly intimate the Agency that they have been placed in Holiday
Listing by BPCL based on the Ministry’s advice

(c) Provision for Appeal

• An agency aggrieved with the decision of the Competent Authority
shall have the option of filing an appeal against the decision of the
Competent Authority within a maximum of 15 days from the date of
receipt of intimation of holiday listing.
• Any appeal filed after expiry of the above period shall not be
considered by the Appellate Authority;
• On receipt of the Appeal from the Agency, the Appellate Authority, if it
so desires, may call for comments from the Competent Authority;
• After receipt of the comments from the Competent Authority, the
Appellate Authority, if it so desires, may also give an opportunity for
personal hearing, to the Appellant Agency;
• After examining the facts of the case and documents available on
record and considering the submissions of the Appellant Agency, the
Appellate Authority may pass appropriate order by which the Appellate
Authority may either :
i. Uphold the decision of Competent authority with or without any
variation/lesser period of Holiday Listing; OR
ii. Annul the order of the Competent Authority.
• No Appeal is permitted in case an Agency is placed in Holiday List by
BPCL, based on Ministry’s advice.

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(d) Effect of Holiday Listing

• No enquiry/bid/tender shall be entertained with an Agency as long as
the ‘Agency’ name appears in the Holiday list.
• If an ‘Agency’ is put on the Holiday list during tendering:
i. If an‘ Agency’ is put on Holiday List after issue of the
enquiry/bid/tender but before opening of the un-priced bid, the
un-priced bid of the ‘Agency’ shall not be opened and BG/EMD,
if submitted by the ‘Agency’ shall be returned. If an ‘Agency’ is
put on Holiday List after un-priced bid opening but before price
bid opening, the price bid of the ‘Agency’ shall not be opened
and BG/EMD submitted by the ‘Agency’ shall be returned .
ii. If an ‘Agency’ is put on Holiday List after opening of price bid
but before finalization of the tender, the offer of the ‘Agency’
shall be ignored and will not be further evaluated and the
BG/EMD if any submitted by the ‘Agency’ shall be returned, The
‘Agency’ will not be considered for issue of order even if the
‘Agency’ is the lowest (L1). In such situation next lowest shall be
considered as L1;
iii. If contract with the ‘Agency’ concerned is in operation,
(including cases where contract has already been awarded
before decision of holiday listing) normally order for Holiday
Listing from business dealings cannot affect the contract,
because contract is a legal document and unless the same is
terminated in terms of the contract, unilateral termination will
amount to breach and will have civil consequences.

(e) Revocation of suspension order

“A Holiday Listing order may, on a review during its currency of operation,
be revoked by the competent authority if it is of the opinion that the
disability already suffered is adequate in the circumstances of the case,
and the Agency has taken appropriate action to avoid recurrence. “

The entire guidelines and procedures for Holiday Listing are available in
BPCL website and they can be accessed @
http://bharatpetroleum.in/pdf/holidaylistingpolicyfinal.pdf.

29. JURISDICTION

The parties hereby agree that the courts in the city of Mumbai alone shall
have jurisdiction to entertain any application or other proceedings in respect of
anything arising under this Agreement and any award or awards made by the
sole arbitrator hereunder shall be filed in the concerned courts in the aforesaid
city only.
30. LIMITATION OF LIABILITY FOR GOODS PROCUREMENT

The aggregate total liability of the Contractor to Owner under the Contract
shall not exceed the total Contract Price, except that this Clause shall not
limit the liability of the Contractor for following:
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(a) In the event of breach of any Applicable Law;

(b) In the event of fraud, willful misconduct or illegal or unlawful acts, or

gross negligence of the Contractor or any person acting on behalf of the
Contractor; or

(c) In the event of acts or omissions of the Contractor which are contrary
to the most elementary rules of diligence which a conscientious
Contractor would have followed in similar circumstances; or

(d) In the event of any claim or loss or damage arising out of infringement
of Intellectual Property; or
(e) For any damage to any third party, including death or injury of any
third party caused by the Contractor or any person or firm acting on behalf
of the Contractor in executing the Works.

Neither Party shall be liable to the other Party for any kind of indirect or
consequential loss or damage like, loss of use, loss of profit, loss of
production or business interruption which is connected with any claim
arising under the Contract.
31. ORDER OF PRECEDENCE FOR PURCHASES
1. Purchase Order
2. Detailed letter of Acceptance along with its enclosures
3. Letter of Award / Fax of Acceptance
4. Job Specifications (specific to particular job only)
5. Drawings
6. Special Purchase Conditions (SPC)
7. Technical Specifications
8. Instructions to Bidders
9. General Purchase Conditions (in GPC)
10. Other Documents
Additionally, any variation or amendment / change order issued after signing
of formal contract shall take precedence over respective clauses of the formal
contract and its Annexures.

32. TERMINATION FOR CONVENIENCE

The purchaser may, by written notice of 14 days sent to the seller, cancel the
contract, in whole or part, at any time for his convenience. The notice of
cancellation shall specify that cancellation is for the purchaser’s convenience,
the extent to which performance of work under the contract is cancelled and
the date upon which such cancellation becomes effective.
The goods that are complete and ready for shipment within 30 days after the
seller’s receipt of notice of cancellation shall be purchased by the purchaser
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at contract terms and prices. For the remaining goods, the purchaser may
opt:-
a. To have any portion completed and delivered at the contract terms
and prices
and / or
b. To cancel the remainder and pay to the seller an agreed amount for
partially completed goods and materials and parts previously
procured by the seller.

33. VALIDITY OF THE CONTRACT

The total requirement shown in this tender enquiry is for a period of three
months from the date of placement of Rate Contract. Hence the tender shall
be valid for a period of three months initially from the date of placement of
Rate Contract.
The contract period may be extended/repeated at sole discretion of
Corporation for a further period of up to 3 months including increasing
the contract quantity calculated on prorate basis on repeat order basis,
at the same terms and conditions.

In case of any dispute in the interpretation of the terms and conditions of the
tender, the decision of the Corporation in this matter shall be final and binding.

___________________________________________________________________________________

Page 24 of 24
QUALITY DISCIPLINE
GUIDELINES - 2019
FOR CYLINDER, SC VALVE, DPR
 QUALITY DISCIPLINE GUIDELINES 2019
FOR CYLINDER, SC VALVE, DPR

INTRODUCTION –
Liquefied Petroleum Gas (LPG) marketing commenced in India during the year 1955
at (Bombay) Mumbai by then M/s Burma Shell. Since then LPG market in India has
evolved over the last six decades and more from a miniscule level to the present
position of over 27 crore customers on Industry basis. The tremendous growth that
India has seen in LPG sales in the past decade can be mainly attributed to the
government policies and the need for alternative clean and green fuels.

The flagship scheme of GOI, the Pradhan Mantri Ujjwala Yojna (PMUY) which provided
8 crore LPG connections starting from FY 2016-17 to women of BPL households has
further bolstered the demand for LPG and LPG equipment in the nation.

The exponential rise in CVR (Cylinder, SC Valve, Regulator) manufacturing and the
need to ensure quality in production, warrants the implementation of stringent quality
controls. Presently, the quality monitoring norms are not standardized amongst OMCs
and there is a need to standardize the norms and define the quality discipline
guidelines for uniform implementation amongst OMCs.

LPG equipment is procured individually by OMCs thru tendering process. The technical
conditions and terms are common across the OMCs as formulated by the Oil Industry
Technical Committee (OITC). The various technical conditions and guarantee terms
spell out the desired quality of the LPG equipment that are to be supplied by the
manufacturers. Besides these technical specifications, there are clauses on warranty
applicable to the manufacturers. In order to ensure that the manufacturers supply the
desired quality equipment, various actions to be taken against erring manufacturers
are formulated into the Quality Discipline Guidelines (QDG). QDG forms part & parcel
of the instructions as issued from time to time under relevant clause on ‘Quality’ and
‘Guarantee’ of the tender.

These guidelines shall be constantly updated to ensure quality of product and services
and enforcing discipline amongst the manufacturers.

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 QUALITY DISCIPLINE GUIDELINES 2019
FOR CYLINDER, SC VALVE, DPR

CHAPTER – 1: LPG CYLINDERS

NON-CONFORMITIES IN LPG CYLINDER MANUFACTURING

1.1 Critical Quality Non-conformities

Critical Quality Non-conformities are those quality defects that make the equipment unsafe
for usage. These defects maybe identified either at bottling plants during SQC/RQC/ or at
LERC/BIS approved labs during routine tests or at Manufacturer’s end during inspection of
BIS cleared batch by OITC/OMC. These defects so identified shall warrant action as per terms
mentioned in this guideline.
The quality defects that shall be considered as Critical Quality Non-conformities and that may
render the cylinder unsafe are listed below:

1.1.1 First Fill leak at plants

1.1.2 Failure in Burst test (Burst Pressure or Volumetric Expansion)
1.1.3 Failure in Hydro-testing /pneumatic testing
1.1.4 Non-conformity w.r.t Water Capacity
1.1.5 Non-conformity w.r.t Minimum thickness
1.1.6 Dimensions of pressure parts not as per drawing

1.2 Major Quality Non-conformities

Major Quality Non-conformities are those quality defects that make the equipment unusable.
These defects maybe identified either at bottling plants during SQC/RQC/ or at LERC/BIS
approved labs during routine tests or at Manufacturer’s end during inspection of BIS cleared
batch by OITC/OMC. The defects so identified shall warrant action as per terms mentioned in
this guideline.
The quality defects that shall be considered as Major Quality Non-conformities and that may
render the cylinder unusable are listed below:

1.2.1 Broken foot ring welding

1.2.2 Broken stay plate welding
1.2.3 Non uniform welding, chatter marks, weld overruns in Circumferential/
bung/foot ring/stay plate/VP ring Weld
1.2.4 Stay Plates not welded from both sides
1.2.5 Stay plate/VP ring assembly dimensions & marking not as per OMC drawing
1.2.6 Foot ring dimensions & markings not as per OMC drawing
1.2.7 Other OMC Cylinder or cylinder fitted with Other OMC foot ring
1.2.8 Bent / inclined stay plate

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 QUALITY DISCIPLINE GUIDELINES 2019
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1.2.9 Bung eccentric / valve inclined on cylinders

1.2.10 Bung threads failing in gauging as per IS 15894
1.2.11 wrong/double markings/ overlapping marking on bung
1.2.12 Bung / stay plate eccentricity beyond the permissible limits
1.2.13 Cylinders having dent, dig, cut, bulge, wrinkle as per IS 13258
1.2.14 Damaged VP Ring or VP Ring type not as per specification
1.2.15 Variation in actual and punched tare weight on bung/stay plate or both by
more than 100 gm
1.2.16 More than one cylinder with same serial number
1.2.17 Foot ring slots missing or not as per specifications
1.2.18 Cylinder dimensions (other than pressure parts) not as per the specifications
given in OMC tender
1.2.19 Minimum Tare weight of cylinder not as per OMC specification
1.2.20 Any defect which involves hot work on the body of cylinder
1.2.21 Mismatch in test date/Cylinder Serial number/ Tare wt. punched on Stay plate
& bung
1.2.22 Non-conformance w.r.t Acceptance test (yield, tensile and elongation), Face /
bend test, verticality, foot ring thickness, ground clearance
1.2.23 Weep hole not as per the tender condition
1.2.24 Failure in macro examination at LERC /BIS Lab
1.2.25 VP ring joint is not at the center of the stay plate
1.2.26 Failure in Chemical analysis of material
1.2.27 Metallizing not done as per tender condition
1.2.28 Any other defect which makes the equipment unusable

1.3 Minor Quality Non-conformities

Minor Quality Non-conformities are those quality defects that can be rectified and the
equipment can be put to use. These defects maybe identified either at bottling plants during
SQC/RQC/ or at LERC/BIS approved labs during routine tests or at Manufacturer’s end during
inspection of BIS cleared batch by OITC/OMC. The defects so identified shall warrant action
as per terms mentioned in this guideline.
The quality defects that shall be considered as Minor Quality Non-conformities and that can
be rectified are listed below:

1.3.1 Valve Bung thread joint leak

1.3.2 Painting quality not as per tender condition/drawing
1.3.3 Variation of 100 grams or more in stenciled wt. & actual wt
1.3.4 Stenciling of tare weight / safety slogans / Logo not as per approved drawing
1.3.5 Stenciling is smudged/illegible

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 QUALITY DISCIPLINE GUIDELINES 2019
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1.3.6 Safety cap not fitted on valve / safety cap without nylon thread/safety cap not
as per OMC Specifications & drawing
1.3.7 Valve over / under tightened. In case of over-tightened valve, valve is to be
removed and to be provided with new valve at no extra cost to OMCs.
1.3.8 Illegible Bung / stay plate markings (where re-punching can resolve the issue)
1.3.9 Non-conformity w.r.t Paint thickness
1.3.10 Leakage from the body of the SC valve of cylinder
1.3.11 Cylinder with SC valve internal Part missing
1.3.12 SC valve without High quality O-ring procured from other than OITC enlisted
vendors
1.3.13 Any other rectifiable defect

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 QUALITY DISCIPLINE GUIDELINES 2019
FOR CYLINDER, SC VALVE, DPR

ACTION TO BE TAKEN UNDER THE QUALITY DISCIPLINE GUIDELINES - CYLINDERS

The action has been proposed based on the different types of quality non-conformities
observed. The action taken for critical quality non-conformities will always be on Oil Industry
basis. The action taken for major and minor quality non-conformities will be on individual
OMC basis. The action initiated by any one OMC on Industry basis for a critical quality non-
conformity of the equipment identified in a particular manufacturing batch (Test date shall
be used as reference) shall not warrant for a repeat action by another OMC for any critical
quality non-conformity identified in any batch manufactured prior to the resumption advice.
In all cases the quality non-conformity shall always be established thru Joint inspection done
by the Manufacturer representative and the OMC/OITC representative. The instances will be
considered always within 2-year tenure starting from 1st established instance.

1.4 Critical:
a. First instance: Any established critical quality non-conformity will result in
suspension of production and dispatch on oil industry basis for all category of LPG
cylinders for a minimum period of one month from the date of issue of suspension
letter. OITC/OMC team shall verify the corrective actions taken by the
manufacturer based on the manufacturer’s readiness and compliance.
Revocation of suspension shall be done after one-month from the date of
suspension subject to compliance of the observations made by the OITC/OMC
team during their inspection and on approval of the revocation by competent
authority. The revocation letter will only be issued if the PESO/BIS licence stands
valid. Pruning of one month of total contract quantity (total contract qty/12) shall
be done.

b. Second instance: Any critical quality non-conformity established for a second

time within 2 years from 1st instance will result in suspension of production and
dispatch on oil industry basis for a minimum period of two months. OITC/OMC
team shall verify the corrective actions taken by the manufacturer based on the
manufacturer’s readiness and compliance. Revocation shall be done after two
months as per the process described in first instance. Pruning of two months of
total contract quantity, i.e. [(total contract qty/12) *2] shall be done.

c. Third instance: Any critical quality non-conformity established for a third time
within 2 years from 1st instance will result in holiday listing for 1 year. OITC/OMC
team shall verify the corrective actions taken by the manufacturer based on the
manufacturer’s readiness and compliance. Revocation shall be done after 1 year
as per the process described in first instance. Pruning of contract quantity (as
available in the contract) shall be done.

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1.5 Major

a. First instance: The first established instance of any major quality non-
conformity shall result in debit of commercial penalty/Administrative cost and
cost of equipment for the number of defective equipment identified during
Joint inspection from the bills/PBG/SD of the manufacturer.

b. Second instance: Any major quality non-conformity established for a second

time within 2 years of 1st instance shall result in debit of commercial
penalty/Administrative cost and cost of equipment for the number of defective
equipment identified during Joint inspection from the bills/PBG/SD of the
manufacturer and shall also result in 5% reduction in the overall contract order
quantity.

c. Third instance: Any major quality non-conformity established for a third time
within 2 years of 1st instance shall result in debit of commercial
penalty/Administrative cost and cost of equipment for the number of defective
equipment identified during Joint inspection from the bills/PBG/SD of the
manufacturer and shall also result in 10% reduction in the overall contract order
quantity.

d. Fourth and subsequent instance: Any major quality non-conformity

established for a fourth time within 2 years of 1st instance shall result in
suspension for a minimum period of one month on Oil Industry basis and debit
of commercial penalty/administrative cost and cost of the equipment for the
number of defective equipment identified during Joint inspection from the
bills/PBG/SD of the manufacturer. Revocation shall be done after one month as
mentioned in clause 1.4 a. Pruning of one month of total contract quantity (total
contract qty/12) shall be done.

1.6 Minor

a. First instance: The first established instance of any minor quality non-
conformity shall result in debit of commercial penalty/Administrative cost for
the number of defective equipment identified during Joint inspection from the
bills/PBG/SD of the manufacturer.

b. Second instance: Any minor quality non-conformity established for a second

time within 2 years of 1st instance shall result in debit of two times commercial
penalty/Administrative cost for the number of defective equipment identified
during Joint inspection from the bills/PBG/SD of the manufacturer and shall also
result in 1% reduction in the overall contract order quantity.
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 QUALITY DISCIPLINE GUIDELINES 2019
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c. Third instance: Any minor quality non-conformity established for a third time
within 2 years of 1st instance shall result in debit of three times commercial
penalty/Administrative cost for the number of defective equipment identified
during Joint inspection from the bills/PBG/SD of the manufacturer and shall also
result in 3% reduction in the overall contract order quantity.

d. Fourth instance: Any minor quality non-conformity established for a fourth

time within 2 years of 1st instance shall result in debit of four times commercial
penalty/Administrative cost for the number of defective equipment identified
during Joint inspection from the bills/PBG/SD of the manufacturer and shall also
result in 5% reduction in the overall contract order quantity.

e. Fifth and subsequent instance: Any minor quality non-conformity established

for a fifth time within 2 years of 1st instance shall result in suspension for a
minimum period of one month on Oil Industry basis and debit of five times
commercial penalty/Administrative cost for the number of defective equipment
identified during Joint inspection from the bills/PBG/SD of the manufacturer.
Revocation shall be done after one month as mentioned in clause 1.4 a. Pruning
of one month of total contract quantity (total contract qty/12) shall be done.

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 QUALITY DISCIPLINE GUIDELINES 2019
FOR CYLINDER, SC VALVE, DPR

CHAPTER – 2: SC VALVES

NON-CONFORMITIES IN SC VALVE MANUFACTURING

2.1 Critical Quality Non-conformities

Critical Quality Non-conformities are those quality defects that make the equipment unsafe
for usage. These defects maybe identified either at bottling plants during SQC/RQC/ or at
LERC/BIS approved labs during routine tests or at Manufacturer’s end during inspection of
BIS cleared batch by OITC/OMC. The defects so identified shall warrant action as per terms
mentioned in this guideline.
The quality defects that shall be considered as Critical Quality Non-conformities and that may
render the SC Valve unsafe are listed below:

2.1.1 Failure of valve in Pneumatic Test

2.1.2 Valve body leakage
2.1.3 Any other leakage affecting safety

2.2 Major Quality Non-conformities

Major Quality Non-conformities are those quality defects that make the equipment unusable.
These defects maybe identified either at bottling plants during SQC/RQC/ or at LERC/BIS
approved labs during routine tests or at Manufacturer’s end during inspection of BIS cleared
batch by OITC/OMC. The defects so identified shall warrant action as per terms mentioned in
this guideline.
The quality defects that shall be considered as Major Quality Non-conformities and that may
render the SC Valve unusable are listed below:

2.2.1 Failure in dimension of external threading as per IS 15894:2011(or latest) and

other critical dimensions
2.2.2 Wrong & illegible punching on Valve Hexagonal faces
2.2.3 Any visible physical damage to Valve body
2.2.4 Broken valve pin/Valves without internals
2.2.5 Non-conformance w.r.t Chemical composition
2.2.6 Non-conformance w.r.t Valve Inlet thread
2.2.7 Non-conformance w.r.t Pin Travel
2.2.8 Non-conformance w.r.t Valve body dimension

2.3 Minor Quality Non-conformities

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 QUALITY DISCIPLINE GUIDELINES 2019
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Minor Quality Non-conformities are those quality defects that can be rectified and make the
equipment usable. These defects maybe identified either at bottling plants during SQC/RQC/
or at LERC/BIS approved labs during routine tests or at Manufacturer’s end during inspection
of BIS cleared batch by OITC/OMC. The defects so identified shall warrant action as per terms
mentioned in this guideline.
The quality defects that shall be considered as Minor Quality Non-conformities and that can
be rectified are listed below:

2.3.1 Safety caps not found as per specifications or missing

2.3.2 Valve “JOINT PACKING” or ‘O’ ring found to be not as per specifications or O-
ring missing
2.3.3 O-Ring not procured from OITC enlisted vendors
2.3.4 Any other rectifiable defects

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 QUALITY DISCIPLINE GUIDELINES 2019
FOR CYLINDER, SC VALVE, DPR

ACTION TO BE TAKEN UNDER THE QUALITY DISCIPLINE GUIDELINES – SC VALVE

The action has been proposed based on the different types on quality non-conformities
observed. The action taken for critical quality non-conformities will be on Oil Industry basis
always. The action taken for major and minor quality non-conformities will be on individual
OMC basis. The action initiated by any one OMC on Industry basis for critical quality non-
conformity of the equipment identified in a particular manufacturing batch (Test date shall
be used as reference) shall not warrant for a repeat action by another OMC for any critical
quality non-conformity identified in any batch manufactured prior to the resumption advice.
In all cases the quality non-conformity shall always be established thru Joint inspection done
by the Manufacturer representative and the OMC/OITC representative. The instances will be
considered always within 2 years starting from 1st established instance.

2.4 Critical:

a. First instance: Any established critical quality non-conformity will result in

suspension of production and dispatch on oil industry basis for a minimum period
of one month from the date of issue of suspension letter. OITC/OMC team shall
verify the corrective actions taken by the manufacturer based on the
manufacturer’s readiness and compliance.
Revocation of suspension shall be done after one-month from the date of
suspension subject to compliance of the observations made by the OITC/OMC
team during their inspection and on approval of the revocation by competent
authority. The revocation letter will only be issued if the PESO/BIS licence stands
valid. Pruning of one month of total contract quantity (total contract qty/12) shall
be done.

b. Second instance: Any critical quality non-conformity established for a second time
within 2 years from 1st instance will result in suspension of production and dispatch
on oil industry basis for a minimum period of two months. OITC/OMC team shall
verify the corrective actions taken by the manufacturer based on the
manufacturer’s readiness and compliance. Revocation shall be done after two
months as per the process described in first instance. Pruning of two months of
total contract quantity, i.e. [(total contract qty/12) *2] shall be done.

c. Third instance: Any critical quality non-conformity established for a third time
within 2 years from 1st instance will result in suspension of production and dispatch
on oil industry basis for a minimum period of three months. OITC/OMC team shall
verify the corrective actions taken by the manufacturer based on the
manufacturer’s readiness and compliance. Revocation shall be done after three

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 QUALITY DISCIPLINE GUIDELINES 2019
FOR CYLINDER, SC VALVE, DPR

months as per the process described in first instance. Pruning of three months of
total contract quantity, i.e. [(total contract qty/12) *3] shall be done.

d. Fourth instance: Any critical quality non-conformity established for a fourth time
within 2 years from 1st instance will result in holiday listing for 1 year. OITC/OMC
team shall verify the corrective actions taken by the manufacturer based on the
manufacturer’s readiness and compliance. Revocation shall be done after 1 year as
per the process described in first instance. Pruning of contract quantity (as available
in the contract) shall be done.

2.5 Major

a. First instance: The first established instance of any major quality non-conformity
shall result in debit of commercial penalty/Administrative cost and cost of
equipment for the number of defective equipment identified during Joint
inspection from the bills/PBG/SD of the manufacturer.

b. Second instance: Any major quality non-conformity established for a second time
within 2 years of 1st instance shall result in debit of commercial
penalty/Administrative cost and cost of equipment for the number of defective
equipment identified during Joint inspection from the bills/PBG/SD of the
manufacturer and shall also result in 2% reduction in the overall contract order
quantity.

c. Third instance: Any major quality non-conformity established for a third time
within 2 years of 1st instance shall result in debit of commercial
penalty/Administrative cost and cost of equipment for the number of defective
equipment identified during Joint inspection from the bills/PBG/SD of the
manufacturer and shall also result in 5% reduction in the overall contract order
quantity.

d. Fourth and subsequent instance: Any major quality non-conformity established

for a fourth time within 2 years of 1st instance shall result in suspension for a
minimum period of one month on Oil Industry basis and debit of commercial
penalty/administrative cost and cost of the equipment for the number of defective
equipment identified during Joint inspection from the bills/PBG/SD of the
manufacturer. Pruning of one month of total contract quantity (total contract
qty/12) shall be done. Revocation shall be done after one month as mentioned in
clause 2.4 a.

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2.6 Minor

a. First instance: The first established instance of any minor quality non-conformity
shall result in debit of commercial penalty/Administrative cost for the number of
defective equipment identified during Joint inspection from the bills/PBG/SD of the
manufacturer.

b. Second instance: Any minor quality non-conformity established for a second time
within 2 years of 1st instance shall result in debit of two times commercial
penalty/Administrative cost for the number of defective equipment identified
during Joint inspection from the bills/PBG/SD of the manufacturer and shall also
result in 1% reduction in the overall contract order quantity.

c. Third instance: Any minor quality non-conformity established for a third time
within 2 years of 1st instance shall result in debit of three times commercial
penalty/Administrative cost for the number of defective equipment identified
during Joint inspection from the bills/PBG/SD of the manufacturer and shall also
result in 3% reduction in the overall contract order quantity.

d. Fourth instance: Any minor quality non-conformity established for a fourth time
within 2 years of 1st instance shall result in debit of four times commercial
penalty/Administrative cost for the number of defective equipment identified
during Joint inspection from the bills/PBG/SD of the manufacturer and shall also
result in 5% reduction in the overall contract order quantity.

e. Fifth and subsequent instance: Any minor quality non-conformity established for
a fifth time within 2 years of 1st instance shall result in suspension for a minimum
period of one month on Oil Industry basis and debit of five times commercial
penalty/Administrative cost for the number of defective equipment identified
during Joint inspection from the bills/PBG/SD of the manufacturer. Pruning of one
month of total contract quantity (total contract qty/12) shall be done. Revocation
shall be done after one month as mentioned in clause 2.4a.

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 QUALITY DISCIPLINE GUIDELINES 2019
FOR CYLINDER, SC VALVE, DPR

CHAPTER – 3: DPR

NON-CONFORMITIES IN DPR MANUFACTURING

3.1 Critical Quality Non-conformities

Critical Quality Non-conformities are those quality defects that makes the equipment unsafe
for usage. These defects maybe identified either at bottling plants during SQC/RQC/ or at
LERC/BIS approved labs during routine tests or at Manufacturer’s end during inspection of
BIS cleared batch by OITC/OMC. The defects so identified shall warrant action as per terms
mentioned in this guideline.
The quality defects that shall be considered as Critical Quality Non-conformities and that may
render the DPR unsafe are listed below:

3.1.1 Failure of DPR in Soundness Test

3.1.2 Failure of DPR in Performance Test
3.1.3 Non-conformance w.r.t Pin Clearance tolerance
3.1.4 Failure of DPR in High & Low temp test
3.1.5 Non-conformance w.r.t dimensions leading to leakage or affecting safety
3.1.6 Failure of DPR in Ball drop test.
3.1.7 Any other non-conformity resulting in leakage or affecting safety

3.2 Major Quality Non-conformities

Major Quality Non-conformities are those quality defects that make the equipment unusable.
These defects maybe identified either at bottling plants during SQC/RQC/ or at LERC/BIS
approved labs during routine tests or at Manufacturer’s end during inspection of BIS cleared
batch by OITC/OMC. The defects so identified shall warrant action as per terms mentioned in
this guideline.
The quality defects that shall be considered as Major Quality Non-conformities and that may
render the DPR unusable are listed below:

3.2.1 Non-conformance w.r.t dimensions not affecting safety

3.2.2 Non-conformance w.r.t Pin travel
3.2.3 Problem in Fitment to a standard S.C. Valve
3.2.4 Failure to maintain minimum weight specified for Regulator Body & Cover
3.2.5 Wrong & illegible punching / markings on Regulator body
3.2.6 Any visible physical damage to regulator body
3.2.7 Regulator colour not as per OMC drawing or colour/paint is peeling off
3.2.8 Wrong or illegible marking on the marking plate

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 QUALITY DISCIPLINE GUIDELINES 2019
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3.2.9 Non-conformance w.r.t Material Composition

3.2.10 Sr.no. & batch no. not at per specification
3.2.11 Broken collar or stainless steel ball missing in the 5 ball clamping mechanism
3.2.12 Breather hole of the regulator is blocked or not present
3.2.13 Failure of DPR in Bush & Tap test & their additional test (pertaining to
Diaphragm, Bush, Operating Tab)
3.2.14 Any other non-rectifiable defects

3.3 Minor Quality Non-conformities

Minor Quality Non-conformities are those quality defects that can be rectified and make the
equipment usable. These defects maybe identified either at bottling plants during SQC/RQC/
or at LERC/BIS approved labs during routine tests or at Manufacturer’s end during inspection
of BIS cleared batch by OITC/OMC. The defects so identified shall warrant action as per terms
mentioned in this guideline.
The quality defects that shall be considered as Minor Quality Non-conformities and that can
be rectified are listed below:

3.3.1 Failure of DPR in Adhesion test

3.3.2 Packaging not as per tender T & C or standard
3.3.3 Cover plate crimping is not as per design
3.3.4 Wrong marking on cover plate or wrong orientation
3.3.5 Any other rectifiable defect

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 QUALITY DISCIPLINE GUIDELINES 2019
FOR CYLINDER, SC VALVE, DPR

ACTION TO BE TAKEN UNDER THE QUALITY DISCIPLINE GUIDELINES -DPR

The action has been proposed based on the different types on quality non-conformities
observed. The action taken for critical quality non-conformities will be on Oil Industry basis
always. The action taken for major and minor quality non-conformities will be on individual
OMC basis The action initiated by any one OMC on Industry basis for a critical quality non-
conformity of the equipment identified in a particular manufacturing batch (Test date shall
be used as reference) shall not warrant for a repeat action by another OMC for any critical
quality non-conformity identified in any batch manufactured prior to the resumption advice.
In all cases the quality non-conformity shall always be established thru Joint inspection done
by the Manufacturer representative and the OMC/OITC representative. The instances will be
considered always within 2 years starting from 1st established instance.

3.4 Critical:

a. First instance: Any established critical quality non-conformity will result in

suspension of production and dispatch on oil industry basis for a minimum period
of one month from the date of issue of suspension letter. OITC/OMC team shall
verify the corrective actions taken by the manufacturer based on the
manufacturer’s readiness and compliance.
Revocation of suspension shall be done after one-month from the date of
suspension subject to compliance of the observations made by the OITC/OMC
team during their inspection and on approval of the revocation by competent
authority. The revocation letter will only be issued if the PESO/BIS licence stands
valid. Pruning of one month of total contract quantity (total contract qty/12) shall
be done.

b. Second instance: Any critical quality non-conformity established for a second time
within 2 years from 1st instance will result in suspension of production and dispatch
on oil industry basis for a minimum period of two months. OITC/OMC team shall
verify the corrective actions taken by the manufacturer based on the
manufacturer’s readiness and compliance. Revocation shall be done after two
months as per the process described in first instance. Pruning of two months of
total contract quantity, i.e. [(total contract qty/12) *2] shall be done.

c. Third instance: Any critical quality non-conformity established for a third time
within 2 years from 1st instance will result in suspension of production and dispatch
on oil industry basis for a minimum period of three months. OITC/OMC team shall
verify the corrective actions taken by the manufacturer based on the
manufacturer’s readiness and compliance. Revocation shall be done after three

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 QUALITY DISCIPLINE GUIDELINES 2019
FOR CYLINDER, SC VALVE, DPR

months as per the process described in first instance Pruning of three months of
total contract quantity, i.e. [(total contract qty/12) *3] shall be done.

d. Fourth instance: Any critical quality non-conformity established for a fourth time
within 2 years from 1st instance will result in holiday listing for 1 year. OITC/OMC
team shall verify the corrective actions taken by the manufacturer based on the
manufacturer’s readiness and compliance. Revocation shall be done after 1 year as
per the process described in first instance. Pruning of contract quantity (as available
in the contract) shall be done.

3.5 Major

a. First instance: The first established instance of any major quality non-conformity
shall result in debit of commercial penalty/Administrative cost and cost of
equipment for the number of defective equipment identified during Joint
inspection from the bills/PBG/SD of the manufacturer.

b. Second instance: Any major quality non-conformity established for a second time
within 2 years of 1st instance shall result in debit of commercial
penalty/Administrative cost and cost of equipment for the number of defective
equipment identified during Joint inspection from the bills/PBG/SD of the
manufacturer and shall also result in 2% reduction in the overall contract order
quantity.

c. Third instance: Any major quality non-conformity established for a third time
within 2 years of 1st instance shall result in debit of commercial
penalty/Administrative cost and cost of equipment for the number of defective
equipment identified during Joint inspection from the bills/PBG/SD of the
manufacturer and shall also result in 5% reduction in the overall contract order
quantity.

d. Fourth and subsequent instance: Any major quality non-conformity established

for a fourth time within 2 years of 1st instance shall result in suspension for a
minimum period of one month on Oil Industry basis and debit of commercial
penalty/administrative cost and cost of the equipment for the number of defective
equipment identified during Joint inspection from the bills/PBG/SD of the
manufacturer. Pruning of one month of total contract quantity (total contract
qty/12) shall be done. Revocation shall be done after one month as mentioned in
clause 3.4a.

3.6 Minor

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a. First instance: The first established instance of any minor quality non-conformity
shall result in debit of commercial penalty/Administrative cost for the number of
defective equipment identified during Joint inspection from the bills/PBG/SD of the
manufacturer.

b. Second instance: Any minor quality non-conformity established for a second time
within 2 years of 1st instance shall result in debit of two times commercial
penalty/Administrative cost for the number of defective equipment identified
during Joint inspection from the bills/PBG/SD of the manufacturer and shall also
result in 1% reduction in the overall contract order quantity.

c. Third instance: Any minor quality non-conformity established for a third time
within 2 years of 1st instance shall result in debit of three times commercial
penalty/Administrative cost for the number of defective equipment identified
during Joint inspection from the bills/PBG/SD of the manufacturer and shall also
result in 3% reduction in the overall contract order quantity.

d. Fourth instance: Any minor quality non-conformity established for a fourth time
within 2 years of 1st instance shall result in debit of four times commercial
penalty/Administrative cost for the number of defective equipment identified
during Joint inspection from the bills/PBG/SD of the manufacturer and shall also
result in 5% reduction in the overall contract order quantity.

e. Fifth and subsequent instance: Any minor quality non-conformity established for
a fifth time within 2 years of 1st instance shall result in suspension for a minimum
period of one month on Oil Industry basis and debit of five times commercial
penalty/Administrative cost for the number of defective equipment identified
during Joint inspection from the bills/PBG/SD of the manufacturer. Pruning of one
month of total contract quantity (total contract qty/12) shall be done .Revocation
shall be done after one month as mentioned in clause 3.4 a.

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CHAPTER – 4: PROCEDURE TO BE FOLLOWED

The following procedure shall be adopted in post identification/establishment of defects.

4.1 For First Fill Leak cases at Bottling Plants:

a. After stoppage of production and dispatch, the manufacturer shall carry out the Joint
inspection at OMC Bottling Plants to witness the quality non-conformity. The Joint
Inspection report will be signed by both the manufacturer and OMC officer.
b. In all established cases, the manufacturer shall carryout radiography test of the point of
leak to identify the cause of defect. The manufacturer shall then do root cause analysis
for the defect and take corrective action at their unit to ensure that the same doesn’t
recur. The manufacturer shall then submit the following documents to OMCs for
approval:
I. Root cause analysis report
II. Action taken report
III. Radiography report
IV. BIS acknowledgement for corrective action taken
V. The Proof of sending the cylinder to LERC
c. Inspection will be carried out by OITC/OMC official for confirmation of corrective action
taken by the Manufacturer.
d. If FFL is not established or FFL is not attributable to the manufacturing process, the
concerned OMC shall advise for resumption of production and dispatches on oil industry
basis.
e. In addition to the above, the Manufacturer shall provide OMCs with indemnity bond as
per format given in tender/ or made available.
f. OMC will then initiate the note for revocation after compliance of observations made
during OITC/OMC inspection and the revocation letter shall be issued after receiving
approval from the competent authority subject to the validity of BIS and PESO Licence.

4.2 For all other critical quality non-conformities at BPs/LERC apart from FFL at BPs:

a. OITC/Competent OMC official will issue Suspension letter on oil industry basis to the
Manufacturer with intimation to BIS. Manufacturer will be asked to stop production
and dispatches to OMCs.
b. OITC /Concerned OMC Dept shall advise action to be taken on the manufacturer as
per the QDG and the stock of that particular batch shall be scrapped.
c. In all established cases, the manufacturer shall carryout root cause analysis to identify
the cause of defect in manufacturing. The manufacturer shall then take corrective
action at their unit to ensure that the same doesn’t recur. The manufacturer shall then
submit the following documents to OMCs for approval:
i. Root cause analysis report
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ii. Action taken report

iii. BIS acknowledgement for corrective action taken
d. Inspection will be carried out by OITC/OMC official for confirmation of corrective
action taken by the manufacturer.
e. In addition to the above, the Manufacturer shall provide OMCs with indemnity bond
as per format given in tender / or made available.
f. OMC will initiate note for revocation after compliance of the observations made during
OITC/OMC inspection and revocation letter shall be issued after receiving approval
from the competent authority subject to the validity of BIS and PESO Licence.

4.3 For all major/minor quality non-conformities observed at bottling plants:

a. OITC/competent OMC official will issue letter to the manufacturer about the defect.
Manufacturer shall depute their authorized representative to the concerned OMC
bottling plant for 100% Joint inspection of the batch.
b. After the Joint inspection, the report shall be mutually signed by both OMC officer and
manufacturer’s representative. The signed report shall be sent to OITC/Concerned
OMC dept. The equipment with rectifiable defects( In case of minor non conformities)
shall be rectified by the manufacturer at his own cost within plant premises. In case,
the manufacturer fails to rectify the defects, plant shall have the option to rectify the
same and debit the cost incurred for rectification from the manufacturer’s running
bills/security deposit/bank guarantee. The equipment with non-rectifiable defects
shall be de-shaped and scrapped and will not to be handed over to the manufacturer.
The vendor will be asked to replace the equipment or necessary debits will be raised
against the cost of the equipment.
c. Basis the joint inspection report and completion of rectification activity by the
manufacturer/plant, OITC/Concerned OMC dept shall advice for action to be taken as
per QDG.
d. Manufacturer will be required to submit the root cause analysis and action taken report
to OITC/Concerned OMC Dept.
e. In addition to the above, the Manufacturer shall provide OMCs with indemnity bond
as per format given in tender /or made available.

4.4 For all major/minor quality non-conformities observed at LERC/BIS approved test
labs:

a. OITC/competent OMC official will issue letter to the manufacturer about the defect. If
the test can be conducted at Bottling plant, Manufacturer shall depute their authorized
representative to the concerned OMC bottling plant from where the sample was sent
for 100% Joint inspection of the batch.

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b. If the test cannot be carried out at Plant, then OITC/ competent OMC official will advise
OMC plant to send another sample of the same batch to LERC for repeating the test
and if the batch is not available then the sample from next batch to be sent. The
manufacturer/ his authorized representative shall witness the test at LERC for the new
sample and a second sample (if feasible as per equipment or the test) taken from the
originally tested equipment that failed in the test. In case the repeat sample fails, OITC
/Concerned OMC Dept shall advise action to be taken on the manufacturer as per the
QDG and the stock of that particular batch lying at different plants shall be scrapped.
The manufacturer shall carry out root cause analysis and take corrective action at their
unit so that the defects do not recur. The manufacturer will also be required to submit
the root cause analysis and action taken report to OITC/Concerned OMC Dept.
However, even if the repeat sample passes, OITC/OMC shall decide if the batch is to
be scraped based on the criticality of the non-conformity.
c. In addition to the above, the Manufacturer shall provide OMCs with indemnity bond
as per format given in tender /or made available.

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FOR CYLINDER, SC VALVE, DPR

CHAPTER – 5: GENERAL GUIDELINES

1. Besides the above, the competent Authority of the concerned Oil Company can take any
appropriate action against the erring Manufacturer, if deemed necessary, including
holiday listing/de-listing in the first or any instance of irregularity.

2. Treatment in case of Multiple non-conformities: In case multiple quality non-conformities

are observed in an equipment, action will be taken on the erring manufacturer as per the
norms mentioned for the highest category of non-conformity established i.e. the order of
precedence for action to be taken will be “Critical” over “Major” and “Major” over “Minor”.
Accordingly, there will be only one action for all irregularities established in one instance.

3. Under existing laws, Control Orders of various authorities of Central Government/State

Government/Statutory bodies – in addition to OMC Officers – are empowered to carry out
checks of the Manufacturer’s unit for determining and securing compliance with such
laws/Control Order. If any “malpractice or non-conformity” is established by such
authorities after checking, the same would also be taken as a “violation” under these
guidelines and prescribed punitive action would be taken by the Oil Company, on receipt
of advice from such authority. In the meantime, if the OMC on its own detects a
malpractice or non-conformity of the same nature; action is to be taken under QDG
independent of the case pending with the Government Authority.

4. Any pending penalty shall be recovered from the running bills/ PBG/ security deposit
under intimation to the Manufacturer as per the practices followed by individual OMCs.

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