(INTEGRITY PACT DOCUMENT)

(TO BE EXECUTED IN PLAIN PAPER AND APPLICABLE FOR

ALL TENDERS VALUING ABOVE RUPEES 10 CRORE)

PRE-CONTRACT INTEGRITY PACT

General

1. This pre bid-contract Agreement (hereinafter called the Integrity Pact)

is made on ………the day of the month of ………..year ……………. Between on
one hand URANIUM CORPORATION OF INDIA LIMITED (UCIL), a Public
Sector Enterprises under the administrative control of Department of Atomic
Energy, Government of India, acting through Chairman & Managing Director
(C&MD) (hereinafter called the “BUYER” which expression shall mean and
include, unless the context otherwise requires his successors in office and
assigns)of the First Part and M/s
_____________________________________________________________
, represented by, ____________________________________________
Chief Executive Officer (hereinafter called the “BIDDER/SELLER” which
expression shall mean and include, unless the context otherwise requires his
successors in office and assigns ) of the Second Part.

WHEREAS the BUYER proposes to procure ………………………………………(Name of

Items to be procured) and the Bidder/Seller is willing to offer/has offered the
stores.

2. Whereas the Bidder is a private company/public company/partnership/

registered export agency, constituted in accordance with the relevant law in
the matter and the Buyer is a Ministry of the Government of India
performing its functions on behalf of the President of India.

Objectives

3. Now, therefore, the Buyer and the Bidder agree to enter into this pre-
contract agreement, hereinafter referred to as Integrity Pact, to avoid all
forms of corruption by following a system that is fair, transparent and free
from any influence/unprejudiced dealings prior to, during and subsequent to
the currency of the contract to be entered into with a view to:-

3.1 Enabling the Buyer to obtain the desired said stores at a

competitive price in conformity with the defined specifications of the
 Services by avoiding the high cost and the distortionary impact of
corruption on public procurement, and

3.2 Enabling bidders to abstain from bribing or any corrupt practice

in order to secure the contract by providing assurance to them that
their competitors will also refrain from bribing and other corrupt
practices and the Buyer will commit to prevent corruption, in any form,
by their officials by following transparent procedures.

Commitments of the Buyer

4. The Buyer Commits itself to the following:-

4.1 The Buyer undertakes that no official of the Buyer, connected

directly or indirectly with the contract, will demand, take a promise
for or accept, directly or through intermediaries, any bribe,
consideration, gift, reward, favour or any material or immaterial
benefit or any other advantage from the Bidder, either for themselves
or for any person, organization or third party related to the contract in
exchange for an advantage in the bidding process, bid evaluation,
contracting or implementation process related to the Contract.

4.2 The Buyer will, during the pre-contract stage, treat all Bidders
alike, and will provide to all Bidders the same information and will not
provide any such information to any particular Bidder which could
afford an advantage to that particular Bidder in comparison to other
Bidders.

4.3 All the officials of the Buyer will report to the appropriate
Government office any attempted or completed breaches of the above
commitments as well as any substantial suspicion of such a breach.

5. In case of any such preceding misconduct on the part of such official(s)

is reported by the Bidder to the Buyer with full and verifiable facts and the
same is prima facie found to be correct by the Buyer, necessary disciplinary
proceedings, or any other action as deemed fit, including criminal
proceedings may be initiated by the Buyer and such a person shall be
debarred from further dealings related to the contract process. In such a
case while an enquiry is being conducted by the Buyer the proceedings
under the contract would not be stalled.
Commitments of Bidders

6. The Bidder commits himself to take all measures necessary to

prevent corrupt practices, unfair means and illegal activities during any
stage of his bid or during any pre-contract or post-contract stage in order to
secure the contract or in furtherance to secure it and in particular commits
himself to the following:-

6.1 The Bidder will not offer, directly or through intermediaries,

any bribe, gift, consideration, reward, favour, any material or
immaterial benefit or other advantage, commission, fees, brokerage
or inducement to any official of the Buyer, connected directly or
indirectly with the bidding process, or to any person, organization or
third party related to the contract in exchange for any advantage in
the bidding, evaluation, contracting and implementation of the
Contract.

6.2 The Bidder further undertakes that he has not given, offered or
promised to give, directly or indirectly any bribe, gift, consideration,
reward, favour, any material or immaterial benefit or other advantage,
commission, fees, brokerage or inducement to any official of the Buyer
or otherwise in procuring the Contract or forbearing to do or having
done any act in relation to the obtaining or execution of the Contract
or any other Contract with the Government for showing or forbearing
to show favour or disfavour to any person in relation to the Contract or
any other Contract with the Government.

6.3 The Bidder will not collude with other parties interested in the
contract to impair the transparency, fairness and progress of the
bidding process, bid evaluation, contracting and implementation of the
contract.

6.4 The Bidder will not accept any advantage in exchange for any
corrupt practice, unfair means and illegal activities.

6.5 The Bidder further confirms and declares to the Buyer that the
Bidder is the original manufacturer/integrator/authorised government
sponsored export entity of the defence stores and has not engaged
any individual or firm or company whether Indian or foreign to
intercede, facilitate or in any way to recommend to the Buyer or any of
its functionaries, whether officially or unofficially to the award of the
 contract to the Bidder, nor has any amount been paid, promised or
intended to be paid to any such individual, firm or company in respect
of any such intercession, facilitation or recommendation.

6.6 The Bidder, either while presenting the bid or during pre-
contract negotiations or before signing the contract, shall disclose any
payments he has made, is committed to or intends to make to officials
of the Buyer or their family members, agents, brokers or any other
intermediaries in connection with the contract and the details of
services agreed upon for such payments.

6.7 The Bidder shall not use improperly, for purposes of competition
or personal gain, or pass on to others, any information provided by the
Buyer as part of the business relationship, regarding plans, technical
proposals and business details, including information contained in any
electronic data carrier. The Bidder also undertakes to exercise due and
adequate care lest any such information is divulged.

6.8 The Bidder commits to refrain from giving any complaint directly
or through any other manner without supporting it with full and
verifiable facts.

6.9 The Bidder shall not instigate or cause to instigate any third
person to commit any of the actions mentioned above.

7. Previous Transgression

7.1 The Bidder declares that no previous transgression occurred in the last
three years immediately before signing of this Integrity Pact, with any other
company in any country in respect of any corrupt practices envisaged
hereunder or with any Public Sector Enterprise in India or any Government
Department in India, that could justify bidder’s exclusion from the tender
process.

7.2 If the Bidder makes incorrect statement on this subject, Bidder can be
disqualified from the tender process or the contract, if already awarded, can
be terminated for such reason.

8. Earnest Money/Security Deposit

8.1. Every bidder, while submitting commercial bid, shall deposit an amount* as
specified in the RFP as Earnest Money/Security Deposit, with the buyer through any of
the following instruments:-
 (i) Bank Draft or a Pay Order in favour of the …………………………………..,

(ii) A confirmed guarantee by an Indian Nationalized Bank, promising

payment of the guaranteed sum to the UCIL, Government of India,
represented on behalf of the President of India, on demand within
three working days without any demur whatsoever and without
seeking any reasons whatsoever. The demand for payment by the
Buyer shall be treated as conclusive proof for payment.

(iii) Any other mode or through any other instrument, as stated in RFP.

At present, the amount of EMD/SD is as under:-

(a) For single-part tenders :2% of the quoted value.

(b) For two-part tenders :
Quoted value range (Rs.) EMD Amount (Rs.)

Upto 25 Lakhs 25 thousand

More than 25 Lakhs upto 50 Lakhs 50 thousand
More than 50 Lakhs upto 1 crore 1 Lakh
More than 1 crore upto 2 crores 2 Lakhs
More than 2 crores upto 4 crores 4 Lakhs
More than 4 crores upto 8 crores 8 Lakhs
More than 8 crores 10 Lakhs

8.2. The Earnest Money/Security Deposit shall be valid till the complete
conclusion of contractual obligations to complete satisfaction of both the
bidder and the buyer, whichever is later.

8.3 In the case of successful bidder a clause would also be incorporated in

the Article pertaining to Performance Bond in the Purchase Contract that the
provisions of Sanctions for Violation shall be applicable for forfeiture of
Performance Bond in case of a decision by the Buyer to forfeit the same
without assigning any reason for imposing sanction for violation of this pact.

8.4 The provisions regarding Sanctions for Violation in Integrity Pact

include forfeiture of Performance Bond in case of a decision by the Buyer to
forfeit the same without assigning any reason for imposing sanction for
violation of Integrity Pact.

8.5 No interest shall be payable by the Buyer to the Bidder(s) on Earnest

Money/Security Deposit for the period of its currency.
9. Company Code of Conduct

9.1 Bidders are also advised to have a company code of conduct (clearly
rejecting the use of bribes and other unethical behavior) and a compliance
program for the implementation of the code of conduct throughout the
company.

10. Sanctions for Violation

10.1 Any breach of the aforesaid provisions by the Bidder or any one
employed by him or acting on his behalf (whether with or without the
knowledge of the Bidder) or the commission of any offence by the Bidder or
any one employed by him or acting on his behalf, as defined in Chapter IX of
the Indian Penal Code, 1860 or the Prevention of Corruption Act 1988 or any
other act enacted for the prevention of corruption shall entitle the Buyer to
take all or any one of the following actions, wherever required:-

(i) To immediately call off the pre-contract negotiations without

assigning any reason or giving any compensation to the Bidder.
However, the proceedings with the other Bidder(s) would continue.

(ii) The Earnest Money/Security Deposit/Performance Bond shall

stand forfeited either fully or partially, as decided by the Buyer and the
Buyer shall not be required to assign any reason therefore.

(iii) To immediately cancel the contract, if already signed, without

giving any compensation to the Bidder.

(iv) To recover all sums already paid by the Buyer, and in case of an
Indian Bidder with interest thereon at 2% higher than the prevailing
Prime Lending Rate, while in case of a Bidder from a country other
than India with interest thereon at 2% higher than the LIBOR. If any
outstanding payment is due to the Buyer from the Bidder in connection
with any other contract for any other stores, such outstanding
payment could also be utilized to recover the aforesaid sum and
interest.

(v) To encash the advance bank guarantee and performance

bond/warranty bond, if furnished by the Bidder, in order to recover the
payments, already made by the Buyer, along with interest.

(vi) To cancel all or any other Contracts with the Bidder.

 (vii) To debar the Bidder from entering into any bid from the
Government of India for a minimum period of five years, which may be
further extended at the discretion of the Buyer.

(viii) To recover all sums paid in violation of this Pact by Bidder(s) to

any middleman or agent or broker with a view to securing the
contract.

(ix) If the Bidder or any employee of the Bidder or any person acting
on behalf of the Bidder, either directly or indirectly, is closely related
to any of the officers of the Buyer, or alternatively, if any close relative
of an officer of the Buyer has financial interest/stake in the Bidder’s
firm, the same shall be disclosed by the Bidder at the time of filing of
tender. Any failure to disclose the interest involved shall entitle the
Buyer to rescind the contract without payment of any compensation to
the Bidder.

The term ‘close relative’ for this purpose would mean spouse
whether residing with the Government servant or not, but not include
a spouse separated from the Government servant by a decree or order
of a competent court; son or daughter or step son or step daughter
and wholly dependent upon Government servant, but does not include
a child or step child who is no longer in any way dependent upon the
Government servant or of whose custody the Government servant has
been deprived of by or under any law; any other person related,
whether by blood or marriage, to the Government servant or to the
Government servant’s wife or husband and wholly dependant upon
Government servant.

(x) The Bidder shall not lend to or borrow any money from or enter
into any monetary dealings or transactions, directly or indirectly, with
any employee of the Buyer, and if he does so, the Buyer shall be
entitled forthwith to rescind the contract and all other contracts with
the Bidder. The Bidder shall be liable to pay compensation for any loss
or damage to the Buyer resulting from such rescission and the Buyer
shall be entitled to deduct the amount so payable from the money(s)
due to the Bidder.

(xi) In cases where irrevocable Letters of Credit have been received

in respect of any contract signed by the Buyer with the Bidder, the
same shall not be opened.

10.2 The decision of the Buyer to the effect that a breach of the provisions
of this Integrity Pact has been committed by the Bidder shall be final and
binding on the Bidder, however, the Bidder can approach the monitor(s)
appointed for the purposes of this Pact.

11. Fall Clause

11.1 The Bidder undertakes that he has not supplied/is not supplying the
similar systems or subsystems at a price lower than that offered in the
present bid in respect of any other Ministry/Department of the Government
of India and if it is found at any stage that the similar system or sub-system
was supplied by the Bidder to any other Ministry/Department of the
Government of India at a lower price, then that very price will be applicable
to the present case and the difference in the cost would be refunded by the
Bidder to the Buyer, if the contract has already been concluded.

12. Independent Monitors

12.1 The Buyer will appoint Independent Monitors for this Pact, in
consultation with the Central Vigilance Commission in a case the
procurement value of single order is above Rs. 50 Crores. ( Name & Address
of Monitors to be given)

12.2 As soon as the Monitor notices, or believes to notice, a violation of this

agreement, he will so inform the Authority designated by the BUYER.

13. Examination of Books of Accounts

In case of any allegation of violation of any provisions of this Integrity

Pact or payment of commission, the Buyer or its agencies shall be entitled to
examine the Books of Accounts of the Bidder and the Bidder shall provide
necessary information of the relevant financial documents in English and
shall extend all possible help for the purpose of such examination.

14. Law and Place of Jurisdiction

This Pact is subject to Indian Law. The place of performance and

jurisdiction is the seat of the Buyer i.e. Jaduguda(Jharkhand) or as decided
by the BUYER.

15. Other Legal Actions

The actions stipulated in this Integrity Pact are without prejudice to

any other legal action that may follow in accordance with the provisions of
the extant law in force relating to any civil or criminal proceedings.
16. Validity

16.1 The validity of this Integrity Pact shall be from date of its signing and
extend up to 5 years or the complete execution of the contract to the
satisfaction of both the Buyer and the Bidder/Seller, whichever is later.

16.2 Should one or several provisions of this Pact turn out to be invalid, the
remainder of this Pact remains valid. In this case, the parties will strive to
come to an agreement to their original intentions.

17. The Parties hereby sign this Integrity Pact at __________ on

______________ .

BUYER BIDDER
CHAIRMAN & MANAGING DIRECTOR CHIEF EXECUTIVE OFFICER
URANIUM CORPORATION OF INDIA LTD.,

Witness Witness

1. ___________________ 1. ____________________

2. ___________________ 2. ____________________