GNFC INVITATION TO BID FOR 50,000 MTPA PAC PLANT Tender.pdf · gnfc invitation to bid for ... 6.1 applicable codes & standards and process design philosophy ... 2 urea 594,000 mta

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GNFC

INVITATION TO BID

FOR

50,000 MTPA PAC PLANT

GUJARAT NARMADA VALLEY FERTILIZERS

& CHEMICALS LIMITED

P.O.: NARMADANAGAR - 392 015

DIST : BHARUCH, GUJARAT, INDIA

SEPTEMBER 2013

TENDER FOR GNFC PAC PLANT AT TDI-II COMPLEX , DAHEJ

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GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS LIMITED

INVITATION TO BID (ITB)

SUBJECT: INVITATION TO BID FOR 50,000 MTPA PLOY ALUMINUM CHLORIDE

PLANT: ITB NO. PROJECT/ PAC / 01

DATE OF ISSUE : 30th September 2013

PRE-BID MEETING : 14th October 2013 @ GNFC Guest House, Bharuch

BID SUBMISSION CLOSING DATE & TIME : 21st October 2013 AT 1700 HRS

(All bids, Part – I, II & III)

TYPE OF BID / PARTS: THREE PARTS IN SEPARATE SEALED COVERS , DULY MARKED AS UNDER:

PART (I): PRE-QUALIFICATION PART

PART (II): TECHNICAL & UNPRICED COMMERCIAL BID

PART (III): PRICED COMMERCIAL BID

EARNEST MONEY DEPOSIT:

INDIAN BIDDERS : Rs 12, 50, 000/-

FOREIGN BIDDERS : US $ 20,000/-

VALIDITY OF BID: 120 DAYS FROM THE DATE OF SUBMISSION OF THE PRICE BID

PLEASE ADDRESS THE SEALED BIDS BY SPEED POST/REGISTERED AD DULY

SUPERSCRIBED WITH OUR REFERENCE NO. & DATE AND ALL FURTHER COMMUNICATION

CONNECTED WITH THIS BID TO:

MR. P.A.SHAH

GENERAL MANAGER


PO: NARMADANAGAR - 392 015 DIST: BHARUCH, GUJARAT, INDIA

PHONE NO. +91 2642 663431

FAX NO. +91 2642 247108

E-mail: [email protected]


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LIST OF CONTENTS

SECTION-1 : TRANSMITTAL LETTER

SECTION-2 : INSTRUCTIONS TO BIDDERS

2.1 GENERAL OUTLINE OF THE PROJECT

2.2 INSTRUCTIONS TO BIDDERS

SECTION-3 : INFORMATION REQUIRED IN THE BID

3.1 PREQUALIFICATION CRITERIA

3.2 TECHNICAL PROPOSAL

3.3 UNPRICED COMMERCIAL PROPOSAL

3.4 PRICED COMMERCIAL PROPOSAL

3.5 TAXES

SECTION -4: GENERAL CONDITIONS OF CONTRACT

4.1 DEFINITIONS

4.2 SCOPE OF CONTRACT

4.3 STANDARDS

4.4 INSTRUCTIONS, DIRECTIONS AND CORRESPONDENCE

4.5 CONTRACT CONFIRMATION

4.6 MODIFICATIONS IN CONTRACT

4.7 USE OF CONTRACT DOCUMENTS AND INFORMATION

4.8 PATENT RIGHTS

4.9 PERFORMANCE SECURITY

4.10 INSPECTION & TESTING

4.11 TIME SCHEDULE AND PROGRESS REPORTING

4.12 PACKING

4.13 DELIVERY AND DOCUMENTS

4.14 INSURANCE

4.15 DESPATCH, TRANSPORTATION/SHIPPING

4.16 INCIDENTAL SERVICES

4.17 SPARE PARTS,.MAINTENANCE TOOLS, LUBRICANTS

4.18 WARRANTEES AND GUARANTEES

4.19 SUB-CONTRACTS

4.20 DELAY IN THE CONTRACTOR'S PERFORMANCE

4.21 LIQUIDATED DAMAGES

4.22 REJECTIONS, REMOVAL OF REJECTED EQUIPMENT AND REPLACEMENT

4.23 TERMINATION OF CONTRACT

4.24 FORCE MAJEURE

4.25 RESOLUTION OF DISPUTES/ARBITRATION

4.26 GOVERNING LANGUAGE

4.27 NOTICES

4.28 TAXES AND DUTIES


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4.29 INDEMNIFICATION

4.30 PERMITS AND CERTIFICATES

4.31 INSTRUCTIONS FOR INVOICING AND PAYMENT DOCUMENTATION

4.32 SPECIFICATIONS

4.33 GENERAL

4.34 TERMS OF PAYMENT

SECTION -5: SPECIAL CONDITION OF CONTRACT

5.1 DEFINITIONS

5.2 EFFECTIVE DATE

5.3 CONTRACTOR'S GENERAL RESPONSIBILITY

5.4 CONTRACTOR'S SCOPE OF WORK

5.5 OWNER'S OBLIGATIONS

5.6 CHANGE IN WORK

5.7 MECHANICAL COMPLETION

5.8 PERFORMANCE GUARANTEES

5.9 PERFORMANCE TESTS

5.10 CORRECTIVE MEASURES AND LIQUIDATED DAMAGES

5.11 ACCEPT ANCE OF PAC PLANT

5.12 DESIGN AND VENDORS' GUARANTEES

5.13 PATENT INFRINGEMENT AND INDEMNIFICATION

5.14 INDEMNITIES.

5.15 LIMITATION OF LIABILITY

5.16 SITE WORKING AND SAFETY CONDITIONS

SECTION -6: TECHNICAL SPECIFICATIONS

6.1 GENERAL

6.2 DETAILED SPECIFICATIONS OF PAC PLANT


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LIST OF ANNEXURES

1.1.1 DRAFT PROFORMA FOR COVERING LETTER ON BIDDING FIRM’S LETTER HEAD AND SUMMARY OF COMMERCIAL BID

1.1.2 DRAFT PROFORMA FOR DEVIATIOS FOR TECHNICAL/COMMERCIAL SCOPE OF WORK

2.1 DRAFT OF BANK GUARANTEE FOR BID SECURITY DEPOSIT

2.2 DRAFT OF BANK GUARANTEE FOR DOWN PAYMENT / PROGRESS PAYMENT TO

CONTRACTOR

4.1 DRAFTS FOR PERFORMANCE GUARANTEE


5.2 APPLICABLE INDIAN RULES, REGULATIONS AND ACTS.

6.1 APPLICABLE CODES & STANDARDS AND PROCESS DESIGN PHILOSOPHY

6.2 DETAILED SPECIFICATIONS FOR ELECTRICAL ITEMS

6.3 DETAILED SPECIFICATIONS FOR INSTRUMENTATION

6.4 DETAILED SPECIFICATIONS FOR MECHANICAL

6.5 DETAILED SPECIFICATIONS FOR CIVIL & STRUCTURAL WORK INCLUDING SOIL

REPORT & EARTH QUAKE REPORT.


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SECTION -1

TRANSMITTAL LETTER


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(GNFC LTD.)

INVITATION TO BID

Sub: - Invitation to submit Bid on Lump-Sum Turn key (LSTK) basis for 50,000 MTPA POLY

ALUMINIUM CHLORIDE (18% Al2O3) Plant at GNFC, Bharuch, Gujarat, India.

1.0 Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) is one of the leading

Indian Companies in the business of manufacturing and selling Fertilizers and Chemicals.

2.0 Existing Fertilizers & Chemicals manufacturing facilities are:

SR

NO.

PLANT CAPACITY COMMERCIAL

PRODUCTION

TECHNLOLGY

1 Ammonia 445,500 MTA Jul. 82 Linde-Germany

2 Urea 594,000 MTA Jul. 82 Snamprogetti-Italy

3 Methanol-I 20,000 MTA Aug. 85 Linde-ICI

4 CPP-I 25 MW Mar. 87 BHEL

5 Formic acid 5,000 MTA Jan. 89 Kemira-Finland

6 CPP-II 25 MW Mar. 89 BHEL

7 Methanol-II 100,000 MTA Jan. 91 Toyo-ICI

8 C N A 33,000 MTA Mar. 91 Plinke-Germany

9 W N A - I 207,900 MTA Mar. 91 UHDE-Germany

10 A N P 142,500 MTA Mar. 91 BASF- Germany

11 C A N 142,500 MTA Mar. 91 UHDE-Germany

12 Hydrogen PSA 2,828 MTA Dec.’94 Linde-Germany

13 Aniline * 20,000 MTA Feb. 95 Chematur AB, Sweden

14 CO – I 2,950 NM3/HR Jul. 95 Linde-Germany

15 Acetic acid 1,00,000 MTPA Sept.95 BP Chemicals-UK

16 TDI (*) 10,000 MTA July,97 DuPont, USA

17 Syn Gas Gen'n

Unit (SGGU)

25,500 NM3/HR Feb. 98 H & G, India

Unit (SGGU)

18 CNA-II 33,000 MTA Jan.’99 Plinke-Germany

19 WNA-I Revamp 24,750 MTA Sept.’99 Krupp Uhde-Germany

20 Wet Scrubbing

System

Feb.’01 Krupp Uhde-Germany

22 Third Gasifier

Stand by Unit

May’01 Texaco, USA

22 CO –

II(Nm3/Hr)

3,500 NM3/Hr. May’02 Linde-Germany

23 CNA - III 50,000 May. 11 Plinke- Germany

24 WNA-II 100,000 Jul. 11 UHDE- Germany

25 CPSU – Power

Steam

33.3 MW

61 MT/Hr

Jan. 12 BHEL- India

26 Ethyl Acetate 50,000 Oct. 12 KBK- India (Pune)

27 Ammonia Syn

gas Generation

Plant (ASGP)

1120 MTD

Ammonia Eq. Syn

gas

Dec. 12 HTAS- Denmark

BASF- Germany

UOP- USA


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3.0 The Company markets entire products in India through countrywide extensive sales and

distribution network.

4.0 (*) GNFC operates TDI Plant at Bharuch site with a capacity of 15000 MTPA in which @

13000 MTPA of HCl gas gets generated as a by product.

5.0 GNFC is setting up a new TDI Plant at Dahej site with a capacity of 50000 MTPA from

which @ 142,700 MTPA HCl (32%) is likely to be generated as a by product. Project work

for the same is over and is in commissioning stage. The details of HCl stream is furnished at

clause 6.2.5

6.0 GNFC proposes to set up the facilities for the production of 50000 MTPA Poly Aluminium

Chloride Plant at Dahej site from available HCl.

7.0 GNFC invites BID from Licensor / Engineering Contractor of International repute for setting-

up full facility for Poly Aluminium Chloride Plant ON LUMPSUM TURNKEY BASIS for

Inside Battery Limit services:

Capacity : 50,000 MTPA (18% Al2O3) Poly Aluminium Chloride

Feedstock : 32% HCl which is available from existing TDI-II Plant

8.0 All utilities like Steam, Power, Demineralised Water, Nitrogen, Instrument Air, Plant Air,

Natural Gas, Cooling Water, Chilled Water etc. are envisaged to be supplied at the Battery

Limit of the proposed Poly Aluminium Chloride Plant from existing TDI complex.

9.0 Responsibility of Outside Battery Limit work lies with CONTRACTOR..

10.0 The proposed Poly Aluminium Chloride Plant will be installed near existing TDI Complex at

Dahej. The proposed location is indicated in the drawing enclosed at clause 6.2.7

11.0 The land at the proposed site for the Poly Aluminium Chloride Plant is already developed and

graded.

12.0 Engineering Contractor / Licensor will be responsible for selection of respective partner and

would submit a joint proposal in a manner and in a form specified in this ITB and will jointly

participate for discussions.

13.0 The overall responsibility for ENGINNERING, Supply of HARDWARE, Construction,

MECHANICAL COMPLETION successful COMMISSIONING and ACCEPTANCE

OF THE PLANT shall be with the Engineering Contractor.


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14. The zero date for the project is planned to be 15th December 2013 and the project is

scheduled to go in to commercial production within 12-16 months from the EFFECTIVE

DATE OF CONTRACT. A contract on the lines of the enclosed general and special

conditions of CONTRACT would be entered into with the selected Engineering

CONTRACTOR for implementation of 50,000 MTPA (18% Al2O3) Poly Aluminium

Chloride on lump sum turnkey (LSTK) basis. The Contract for implementation of

50,000 MTPA (18% Al2O3) Poly Aluminium Chloride Plant would be as per the scope

of work described in detail at Section -5 and Section - 6 of this Invitation to Bid (ITB).

However, the Bidder shall be deemed to have prepared the Bid on the basis of its

independent judgment and to have made all necessary allowances and provisions to

ensure that the 50,000 MTPA (18% Al2O3) Poly Aluminium Chloride Plant will meet all

technical specifications prescribed hereunder including the specified performance

requirements and guarantees and be entirely suitable for the purpose for which it is

intended. Accordingly, the Bid Price will, without extra price and / or extension of time,

be held to include everything implicitly or otherwise required or necessary for the proper

and timely completion of the WORK including ACCEPTANCE OF PLANT in

accordance with the CONTRACT. The Scope of work in brief is as follows:

Scope as Lump-sum-turn-key-basis:

1 Grant of process License (s,

2 Know-how and basic engineering

3 Detailed engineering

4 Supply of Plant, Equipment & Bulk Materials

5 Plant Erection & Construction

6 OSBL Piping including Engineering, Supply & erection

7 Pre-commissioning & Commissioning

8 Guarantee test and handing over the Plant to OWNER

9 Training to Owner's Employee

10 Any other services, within battery limit, required to complete the PLANT in all

respects

The BID should contain all the information required to be submitted as detailed in Section

-3 of the ITB.


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Part (I) - Prequalification BID:

The information / confirmation covered at clause 3.1.0 of Section -3, which describes the

Criteria for Pre-qualification are to be furnished in Part - I in a sealed cover. The BIDS

which are in compliance with the criteria described at clause 3.1.0 will only be considered

for further evaluation. Bids must include latest complete updated information. Bids received

without submission of information or having non- compliance with respect to set

prequalification criteria as per clause 3.1.0 are liable for rejection.

Part (II) - Technical and un-priced commercial BID:

The bid shall contain all the information / confirmation necessary for techno-commercial

evaluation of the BID.

Over and above requirements specified under different chapters, the BID must contain

specifically all the information asked vide clause 3.2.0 of Section -3.

The Technical and un-priced commercial BID must also include signed copy of Annexure -

1.1 without prices filled in, indicating that the respective prices are covered in the Priced

Commercial BID.

Part (III) - Priced Commercial BID:

This part will contain commercial bid including prices duly filled in a tabulated form as

mentioned in Annexure -1.1.

a. Bidder shall ensure that details / clarifications required by owner, during the bid

evaluation process, are satisfactorily provided within time period specified. Failing

which, the Bid is liable for rejection at any stage.

b. Company's name, place of business, year of establishment, a list of directors on

company's board, general experience in execution of projects for 50,000 MTPA (18%

Al2O3) Poly Aluminum Chloride Plant Evidence of financial standing, previous three

years Annual Reports and Balance Sheets should be enclosed.


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c. A latest updated reference list of PAC Plants designed and/or built/under construction by

the firm, with names of customers, location, capacities, scope of services provided and

year of commissioning, scheduled/planned & actual completion time.

d. The year-wise operating data on PAC plants giving capacity utilization, on-stream days

and specific energy consumption (with break-up of raw materials and utilities

consumption and others if any etc).

e. The names & resume of key personnel who would be assigned to this project, including

their position in proposed work plan, information on the strength of back-up staff (home

office / Indian associate).

f. Indication of current work-load and possible future loading for the period envisaged for

this project, in terms of engineering man-hour available and committed load.

g. Proposed plan for design, engineering, procurement, material control, erection

management and sub-contracting arrangements, either with associated companies or

others.

h. Details of License (exclusive or non-exclusive), or other such arrangements including

patents of a similar nature relevant to this project.

i. Company structure and outline of the plan for carrying out the work, including

organization chart of CONTRACTOR.

j. Intended arrangements to provide training to OWNER'S personnel for operations and

maintenance on similar plants and at vendors' workshop.

k. Any possible savings in time schedule compared to that proposed by OWNER, resulting

from the firm's previous experience and/or other special circumstances along with

supporting data / documents.

l. List of proprietary items such as equipment and machinery along with name and country

of supply.

m. Information on dispute(s) and/or arbitration case(s) with client(s) in last 5 years,

indicating whether the disputes are settled or still pending.


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n. Any deviation from commercial conditions or technical specifications should be

separately listed giving the reference of clause number of general/special conditions of

CONTRACT or technical specifications. If no deviation is marked against any clause, it

will be presumed that the Bidder agree with the content of the clause(s). The deviation

format is included at Annexure-1.2. The deviations for technical part and commercial

part shall be on separate sheets prescribing technical and commercial deviations.

o. The CONTRACTOR will submit proposed vendor list for major supply of equipment.

This list must be as comprehensive as practical. OWNER has right to reject some of the

VENDOR from the list.

p. Besides the price quoted, the selection of the CONTRACTOR will be based on the firm's

experience in building similar plants on lump sum turnkey basis, proposed work-plan

including the schedule, Specific consumption and approach in responding to the ITB,

qualification/experience or proposed key personnel in the PAC projects or similar type,

proven track record & economics of the proposed process and performance of the

operating plants.

q. If the bids, as judged by the OWNER, are unresponsive, the invitation may be declared

void and a new procedure for the selection of the CONTRACTOR as deemed fit by

OWNER would be adopted.

r. BID in 4 copies should be delivered to OWNER at the address given below as detailed

in Section - 2.

s. All the bidders will be presumed to have visited the project site to acquaint themselves

with the prevailing site conditions including weather. Arrangements to visit the site can

be made by sending a request to OWNER through fax / e-mail. OWNER may be advised

of bidder's visit well in advance to make appropriate arrangements. No adjustments to

price in the bid shall be accepted by the OWNER on the basis of insufficient knowledge

of the project site conditions.

t. Acknowledgements of receipt of this invitation and any amendments, clarifications

and/or additional information issued by OWNER should be immediately sent by the

invited bidders by Fax/ e-mail.


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u. Interested bidders should indicate by Fax/e-mail their intention to participate in the

Bidding not later than two weeks from bid issue date. Bids should be sent by Registered

Mail/Courier service/ In Person and firms should notify OWNER by Fax/e-mail the date

of dispatch.

v. All communications should be in the English language and all measurements in the

metric system.

w. This BID document and all attached documents are and shall remain the property of

OWNER and are transmitted to the bidders solely for the purpose of preparation and the

submission of a bid in accordance herewith. The BIDS shall also be submitted as files in

CD, in software’s such as PDF. Bidder shall keep all the documents confidential and

shall not release them or any part thereof, to a third party other than for the purpose of

preparing and submitting a bid. All documents shall be returned to the OWNER by

unsuccessful bidders.

x. The due date of submission of BID is 21st October 2013

y. All correspondence and communications should be addressed to

MR. P.A.SHAH

GENERAL MANAGER



PHONE NO. +91 2642 663431

FAX NO. +91 2642 247108


Invited firms may, if they so desire, request for additional information from OWNER.

Yours Faithfully,

P.A.Shah

For Gujarat Narmada Valley Fertilizers & Chemicals Ltd.,


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ANNEXURE- 1 . 1

DRAFT

PROFORMA FOR COVERING LETTER ON BIDDING FIRM'S LETTER HEAD

Attn: -

Re: - PROPOSAL FOR LUMPSUM TURN-KEY (LSTK) EXECUTION OF

50,000 MTPA (18% Al2O3) PLOY ALUMINIUM CHLORIDE PLANT

SUMMARY OF COMMERCIAL BID.

Dear Sirs,

We have examined the Invitation to Bid No ................................................ Dt.

.......................... including the scope of work, general and special

conditions of contract and technical specifications. We are prepared to under-take the

complete work of the 'CONTRACTORS' as defined in the special conditions of contract

at Section - 5 for fixed, total and firm price of INR / US$ __________________

(Indian Rupees / US Dollar ....................) as per the break-up below:

Base bid INR FOREIGN CURRENCY

SN Lump-sum-turn-key-basis

1 Grant of process License(s)

2 Know-how and Basic Engineering

3 Detailed engineering, supervision of detailed

engineering if any

a) Home office services

b) Others

4 A Supply of Indigenous Items incl.

commissioning spares (Plant Equipments,

Machinery & Bulk Materials etc.

a) Items (Equipment) costs

( CPT Bharuch )

b) Taxes and Duties (GVAT) as applicable

4 B Supply of Imported Items incl. commissioning

spares (Plant Equipments, Machinery & Bulk

Materials etc.


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a)Items (Equipment) costs (CIF Indian Port)

b) Port Clearance and Transportation up to site

c) Customs Duties and taxes as applicable

5 Erection & Construction

a) Mechanical b) Electrical c) Instrumentation

d) Civil & Structural Work including

Buildings e) Insulation and Painting work f) Service Tax

6 Pre-commissioning &

commissioning

Service Tax

7 Guarantee test and handing over the plants to

OWNER

8 Training Service Tax

9 Spare parts for 2-Year Operation *

10 Insurance ( Type and Risk cover to be mentioned)

11 Project Management & Overheads Service Tax

12 Income tax and cess on R&D

13 Escalation included in LSTK Price and

Contingencies

14 Any optional service (if required)

15 Total LSTK price including taxes and Duties


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APPLICABLE TAXES AND DUTIES AS ON DATE ON IMPORTED SUPPLIES.

Applicable outside India on CIF supplies RATES AMOUNT

INR

Basic Custom Duty (CD) on CIF value % 10 CVD on CIF+CD % 12 Educational Cess incl. HE Cess % 3 Special Additional Duty of Customs % 4 Ocean / Air Freight % To be

indicated by

Bidder

Marine Insurance % To be

indicated by

Bidder

Port handling and clearance charges % To be indicated

by Bidder

Inland Freight / Transit insurance % To be indicated

by Bidder

COMMERCIAL EVALUATION WILL BE DONE ON LANDED COST TO COMPANY.

CONTRACTOR SHALL FURNISH THE VALUE OF AMOUNT OF CENVAT CREDIT AVAILABLE

TO OWNER.

NOTE: (*): List of equipment / spares may be furnished. Cost of each class of equipment as below

should be furnished separately ( Interchangeability of each item to be specified by

CONTRACTOR):-

Reactors

Filters

Exchangers

Pumps

Spray drier

Special Equipments Package Units

Piping

Steel structures

Foundations, Concrete Structures & Buildings Electrical

Instrumentation & Control


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Chemicals Others

Commissioning spares

Two Years Operational Spare

Inspection and Testing

The deviations from the special conditions of contract at Section-5 of ITB have been listed

and enclosed herewith.

It is understood that as a condition of this proposal, no agreement, oral or otherwise will exist

until a written agreement has been signed by an authorized representative of OWNER and

approved by the concerned Government Authorities and Financial Institution(s). Any

expenses incurred by the bidder prior to execution of such agreement will be borne

exclusively by the bidder without obligation of any kind on the part of OWNER, regardless

of the circumstances under which such expenses were incurred.

It is the bidder's intention; if awarded the contract, to comply fully and in all respect with

contract documents.

It is further understood that OWNER is not bound to accept the lowest or any bid that may be

received and may reject all or any bid without assigning any reason thereof.

Yours faithfully

For and on behalf of .........................

Signature of Bidder ..........................

Title ...............................

Note: A copy of this letter with prices to be enclosed with Priced Commercial Proposal and one

signed copy of letter without prices should be enclosed with Un-priced Commercial Proposal.


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ANNEXURE- 1 . 2

Draft Proforma for Deviations for Technical / Commercial Scope of Work.

Sr.

No.

Section Clause No. &

Page No.

Description of Deviation

We confirm that there are no other deviations than listed above.

Signature of Bidder


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SECTION-2

INSTRUCTIONS TO BIDDERS


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2.1.0 GENERAL OUTLINE OF THE PROJECT

2.1.1 OWNER'S PROFILE

GNFC operates TDI Plant at Bharuch site with existing production capacity of 15000 MTPA in

which @ 13000 MTPA of HCl gas gets generated as a by product.

GNFC is setting up a new TDI Plant at Dahej site with a capacity of 50000 MTPA from which

@ 45000 MTPA HCl (100%) gas is likely to be generated as a byproduct. Project work for the

same is under progress and new TDI plant is likely to go on stream by mid of next year.

The details of HCl gas stream is furnished at clause 6.2.5

2.1.2 GNFC:

Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) is one of the leading Indian

Companies in the business of manufacturing and selling Fertilizers and Chemicals.

GNFC operates the Ammonia - Urea plant complex since 1981 at Narmadanagar, Bharuch,

Gujarat, India. Later on, Nitrophosphate complex was commissioned in 1989. Subsequently

various other chemical plants were added. Presently GNFC is the largest producer of

Methanol, Acetic Acid and Formic Acid, in India.

2.1.3 SCOPE OF THE PROJECT

The main scope of .work for the 50,000 MTPA PAC Plant will be as stated below:

2.1.3.1 The PLANT is to be Designed, Engineered, Supplied, Constructed, Erected, Tested and

Commissioned, shall be complete in all respects with- full facilities for production of 50,000

MTPA (18% Al2O3) Poly Aluminum Chloride on continuous basis for operation of 8000

hours in a year with specifications as per clause 6.2.4.1, including facilities to connect the

PLANT with existing TDI-II Complex at Dahej Site.

The PLANT shall consist of, but shall not be limited to the following units:

a) Hydrochloric Acid Storage.

b) Alumina Storage

c) Alumina Handling System

d) Reaction & PAC Cooling


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e) Filtration

f) Vent Gas Scrubber

g) Waste Water Treatment

h) Storage of Final Product (PAC liquid) and handling

i) Car buoy filling system and storage

j) Spray Dryer

k) Bagging system for PAC30

l) Storage of PAC30 Bags

m) ISBL Plant Steam / BFW System / Condensate Treatment Facilities

n) Electrical Power System for ISBL Plant including separate Substation

o) ISBL Plant circulating Cooling Water System including CW treatment facilities.

p) ISBL Plant Fire Water System

q) ISBL Plant utility N2 / Inst Air / Plant Air headers & distribution System

r) Waste water / waste gas COLLECTION AND treatment system.

s) Control room and Analyzer house / Laboratory.

t) Tie-in for NG, N2, HCl, POLY ALUMINIUM CHLORIDE and other utilities with

the Existing Facilities of TDI-II Complex at Dahej of OWNER and their integration

for smooth operation.

u) Complete Civil Works as per TS (as specified in the scope of work of ITB)

v) Complete Instrumentation Work as specified in TS

w) Complete Electrical system as specified in TS

x) Fire detection and extinguishing system/equipments

2.1.4 The management of the total project will be done by BIDDER. However, OWNER'S

project team / OWNER appointed Project Management Consultant (PMC) may oversee,

monitor and coordinate the project.

2.1.5 The feedstock for 50,000 MTPA (18% Al2O3) Poly Aluminum Chloride i.e. HCl is

available at the plant site and all other raw materials required shall be made available by

the OWNER.

2.1.6 The CONTRACTOR shall be deemed to have prepared the bid on the basis of its

independent judgment and to have made all necessary allowances and provisions to

ensure that the PLANT will meet all technical specifications including specified

performance requirements and guarantees and be entirely suitable for the purpose for

which it is intended. Accordingly, the bid Price will, without extra price and/or extension


Page (22)

of time, be held to include everything implicitly or otherwise required or necessary for

the proper and timely completion of the Works including acceptance of PLANT in

accordance with the CONTRACT.

2.1.7 The Bid Price shall include the cost of all CONTRACTOR'S and other miscellaneous

equipment, materials, services and works needed to complete and remedy defects and

deficiencies, if any, in the PLANT in accordance with the CONTRACT.

2.1.8 Bidder must, during the Tender Period, acquaint themselves with social security, safety,

pollution control, permit, license and other relevant rules and regulations of the Gujarat

state.

2.1.9 Bid Prices shall include for all travel, accommodation and living costs of management

and engineering staff in travelling to, from and in Narmadanagar/Dahej, Bharuch,

Gujarat, India and other countries as may be necessary for the proper performance of the

CONTRACTORS' responsibilities under the CONTRACT and shall include all costs and

expenses incurred in attending such meetings in connection with the CONTRACT as

OWNER may reasonably require.

2.1.10 CONTRACTOR shall incorporate during design stage maximum utilization of goods

manufactured and/or available in India and also avail shipping, insurance, banking,

catering and any other services available from India-owned companies for installation of

the PLANT, if quality, delivery and overall cost characteristics are equivalent.

CONTRACTOR shall secure all published references regarding the manufacturers and

traders in India.

2.2.0 INSTRUCTIONS TO BIDDERS

2.2.1 COST OF BIDS

The Bidder shall bear all costs associated with the preparation and submission of this bid,

and OWNER will, in no case, be responsible or liable for these costs, regardless of the

conduct or outcome of the bidding process.


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2.2.2 BID DOCUMENTS

The Bidder is expected to examine all instructions, forms, terms and conditions in the

ITB. The Invitation to Bid together with all its attachments thereto, shall be considered to

be read, understood and accepted by the Bidders, unless deviations are specifically stated

in seriatum by the Bidder. Failure to furnish all information required or submission of a

Bid not responsive to the ITB in every respect will be at the Bidder's risk and may result

in the rejection of the bid.

The Bids shall be evaluated in three separate parts:

Part (I): Prequalification Criteria

CONTRACTOR Bid submission at Part-I shall comprise;

a) All copies of documents required for pre-qualification criteria as per Article 3.1.0 of

section 3

b) Bid security/ EMD

Part (II): Technical Bid

CONTRACTOR Bid submission at Part II shall comprise;

a) The technical volume

b) The unpriced commercial volume

c) OWNER clarifying & assessing technical matters in the Bid

d) A complete listing of all deviations to this ITB

Part (III): Price Bid

CONTRACTOR Bid submission at Part III shall comprise.

a) A fully priced commercial Bid (corresponding to the Contaractor's Part -II technical

and un-priced commercial submissions)

b) A complete listing of all deviations to this ITB

Bid closing date is: 21st October 2013

Three parts of the BID i.e. Part -I, Part - II and Part-III documents in separate sealed

envelopes must arrive at GNFC no later than 17:00 hrs on 21st October 2013.


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2.2.3 CLARIFICATIONS ON ITB

2.2.3.1 Bidders requiring any clarification shall obtain the same from OWNER'S office in

writing through fax/e-mail or by letter or in person so as to ensure submission of bid on

or before Bid closing date. OWNER will respond in writing to such queries, which are

received at least two weeks before Bid closing date.

Written copies of the OWNER'S response (including an explanation of the query but

without identifying the source of enquiry) will be sent to all Bidders who have been

issued the ITB.

2.2.4 AMENDMENT OF ITB

2.2.4.1 At any time prior to the deadline for submission of Bids, OWNER may for any reason,

whether at their own initiative or in response to a clarification requested by a Bidder,

modify the ITB by amendment.

2.2.4.2 The amendment will be notified in writing or by fax / e-mail to all Bidders who have

received the ITB and will be binding on them.

2.2.4.3 In order to allow Bidders reasonable time in which to take the amendment into account in

preparing their Bids, OWNER may, at their discretion, extend the deadline for the

submission of Bids.

2.2.5 LANGUAGE OF BID

The Bid prepared by the Bidder and all correspondence/drawings and documents relating

to bid exchanged by the Bidder and OWNER shall be Written in ENGLISH language,

provided that any printed literature furnished by the Bidder may be written in another

language so long as it is accompanied by ENGLISH translation, in which case for

purpose of interpretation of the Bid, the ENGLISH translation shall govern. Metric / SI

measurement system shall be used.

2.2.6 PRICE

Prices shall be written in both words and figures. In the event of difference, the price in

words shall be valid and binding. Unit prices shall be considered correct in the event of

any discrepancy with regard to total price.


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Prices quoted by the Bidder shall be fixed and not subject to any escalation whatsoever

during the period of Bid validity and execution of the CONTRACT / Purchase Order. A

Bid submitted with an adjustable price may be treated as non-responsive and rejected.

2.2.7 BID CURRENCIES

Bidder shall quote in two currencies. Bidder has to quote against foreign currency in US

Dollar / Euro only and against Indian currency in Rupees Only. Quotation in other

currency is not allowed except these two currencies.

2.2.8 BID SECURITY (EARNEST MONEY DEPOSIT (EMD))

2.2.8.1 The Bidder shall furnish as part of his Bid, Bid security (EMD) in the form of Bank

Guarantee issued or by any first class international bank or any one of the Indian

scheduled banks (excluding Co-operative banks) or its foreign branches and indicated in

the proforma as Annexure-2.1 for the required amount as specified in Indian Rs. or

equivalent amount in US dollars. The Bid security should be valid up to 120 days from

the date of submission of the Bid.

Bid security can also be in the form of a demand draft, issued in favour of Gujarat

Narmada Valley Fertilizers & Chemicals Limited, payable at Bharuch.

2.2.8.2 Any Bid not accompanied with the bid security may be rejected by OWNER as non-

responsive.

2.2.8.3 The Bid Security will be returned to the unsuccessful bidders within 30 days on

acceptance of one of the invited Bids or when the Bid is cancelled by OWNER.

2.2.8.4 The successful Bidder's Bid Security will be discharged upon the Bidder's accepting the

CONTRACT and furnishing the Performance Security.

2.2.8.5 The Bid Security may be forfeited without prejudice to any other right of remedy of

OWNER.

a) If a Bidder withdraws his Bid during the period of Bid validity specified by the

Bidder, or

b) In the case of successful Bidder, if the Bidder fails:

To sign the CONTRACT or


Page (26)

To furnish the Performance Security.

2.2.8.6 The Bid Security amount shall be Rs. (INR) 1.25 million (Rs. One million and two hundred

fifty thousand) or equivalent in US$ 20,000 / - (US$ Twenty Thousand).

2.2.9 PERIOD OF VALIDITY OF BIDS

2.2.9.1 Bids shall be valid for a minimum period of 120 days from the date of submission of the

Bid. A Bid valid for a shorter period may be rejected by OWNER as non responsive.

2.2.9.2 In exceptional circumstances, OWNER may solicit the Bidder's consent to an extension of

the period of validity. The request and the response thereto shall be made by Fax / e-mail

followed by a signed confirmation copy by post.

The Bid Security Bond shall also be suitably extended. A Bidder may refuse the request

without forfeiting its Bid Security.

A Bidder extending the validity of his bid will not be permitted to modify the bid.

2.2.10 FORMAT AND SIGNING OF BID

2.2.10.1 The Bidder shall prepare four copies (1 original + 3 copies) of the Bid, clearly marking

each "Original Bid" and "Copy of Bid" as appropriate. In the event of any discrepancies

between them, the original shall govern.

The original and all copies of the Bid shall be typed or written in indelible ink and shall be

signed by the Bidder, with the official seal of the Company or a person or persons duly

authorized to bind the Bidder to the CONTRACT. All pages of the Bid, except for

unamended printed literature shall be initialed by the person or persons signing the Bid.

2.2.10.2 The Bid shall contain no interlineations, erasures or overwriting except as, necessary to

correct errors made by the Bidder, in which case such corrections shall be initialled by the

person or persons signing the Bid.

2.2.11 SEALING AND MARKING OF BIDS

2.2.11.1 The Bids of each Part shall be submitted duly marked as "Original" and "Copy" in a sealed cover.

Part (I): Prequalification Criteria

The bid should contain all copies of documents required for prequalification criteria

along with Bid Security. This envelope should be clearly marked "Part - (I)

Prequalification Criteria and Bid Security".


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Part (II): Technical Bid

The bid should contain all copies of technical details and unpriced commercial proposal

and the cover should be clearly marked "Part-(II) Technical Bid".

Part (III): Commercial Bid

The bid should contain all the copies of Commercial Bids with price details and the cover

should be clearly marked "Part - (III) Priced Bid".

2.2.11.2 The envelopes shall:

a) Be addressed to:

MR. P.A.SHAH

GENERAL MANAGER

GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS

LIMITED


PHONE NO. 0091 2642 663431

FAX NO. 0091 2642 247108


b) Bear 50,000 MTPA PAC Project, ITB No. PROJECT / PAC /01, Bid closing date,

and the words "DO NOT OPEN TILL 21st October 2013".

c) Indicate the name and address of the Bidder to enable the Bid to be returned unopened

in case it is declared "Late".

2.2.11.3 If the envelope is not sealed and marked as required by clause 2.2.11.2 OWNER will

assume no responsibility of the Bid's misplacement or premature opening,

2.2.12 LATE BIDS

Any Bid received by OWNER after the deadline for submission of Bids may be rejected.


Page (28)

2.2.13 MODIFICATION AND WITHDRAWAL OF BIDS

2.2.13.1 The Bidder may modify or withdraw his Bid after the Bid's submission, provided that

written notice of the modification or withdrawal is received by OWNER prior to the

deadline prescribed for submission of Bids.

2.2.13.2 A withdrawal notice may also be sent by FAX or e-mail but followed by a signed

confirmation copy, post marked not later than the deadline for submission of Bids.

2.2.13.3 No Bid may be withdrawn in the interval between the deadline for submission of Bids

and the expiration of the period of Bid validity specified by the Bidder. Withdrawal of a

Bid during this interval may result in forfeiture of the Bidder's Bid Security.

2.2.14 OPENING OF BIDS BY OWNER

2.2.14.1 OWNER will open the Bids after the Bid Submission Date.

2.2.14.2 Clarification of Bids:

After opening of the Bids, to assist in the examination evaluation and comparison of

Bids, OWNER may, at its discretion, ask the Bidder for a clarification on his Bid. The

request for such clarification and the response shall be in writing and no change in the

price or substance of the Bid shall be sought, offered or permitted.

2.2.15 PRELIMINARY EXAMINATION

2.2.15.1 OWNER will examine the Bids to determine whether they are complete, whether any

computational errors have been made, whether required securities have been furnished,

whether the documents have been properly signed and whether the Bids are generally in

order.

2.2.15.2 Prior to the detailed evaluation, OWNER will determine the substantial, responsiveness

of each Bid to the ITB. For purpose of this Article a substantially responsive Bid is one

which conforms to all the Terms and Conditions of the ITB without material deviations.

OWNER'S determination of a Bid's responsiveness is to be based on the contents of the

Bid itself without recourse to extrinsic evidence.


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2.2.15.3 A Bid determined as substantially unresponsive will be rejected by OWNER and Bidder

is not entitled subsequently to make the Bid responsive by correction of the non-

conformity.

2.2.15.4 OWNER may waive any minor non-conformity or irregularity in a Bid which does not

constitute a material deviation provided such waiver does not prejudice or affect the

relative ranking of any Bidder.

2.2.15.5 Technical Bids including commercial conditions and variation thereof, if any, shall be

scrutinized by OWNER.

2.2.15.6 In the event clarifications are required then such clarifications will be obtained from all

Bidders for bringing all of them at par technically. The clarifications shall be obtained

either by FAX/email or by personal discussions duly recorded.

2.2.16 EVALUATION AND COMPARISON OF BIDS

2.2.16.1 The OWNER will evaluate and compare those Bids which are determined to be

substantially responsive pursuant to clause 2.2.15.2. The preferred terms of payment of

the OWNER are as per clause 4.34.0.

2.2.16.2 The financial comparison shall be based on NPV (Net Present Value) arrived at using the

cost of the installed plant as quoted by the Bidders and operating cost of the plants for 15

years of operation based on the guaranteed specific consumption figures for raw

materials and utilities furnished by the Bidders in the technical bids. The Bidder shall

furnish the year wise phasing of his CONTRACT price.

For each deviation from the ITB terms having financial impact, suitable loading in the

cost quoted by BIDDER will be done. Specific loading for variations in expected and

guaranteed figures, consumption norms of raw material /utilities, energy consumption

and delay in completion period shall be considered during final evaluation.

2.2.16.3 It is understood that firm prices quoted by the Bidders are inclusive of the following,

a) The charges for customs clearance, port handling and onward dispatch to site and

forwarding charges if applicable.

b) Agency commission payable to the Agents.

c) Freight up to Site.


Page (30)

d) Storage at Site, site assembly, erection, pre-commissioning and commissioning until

acceptance.

e) Cost for insurance during ocean and land transit, storage erection and commissioning

until acceptance and handing over the complete Plant as per technical specifications and

scope of work the cost of third party liability / insurance for discharging the statutory

obligation under the local laws.

2.2.16.4 Impact of Performance & Productivity

The performance and productivity of the plant offered would be considered while

evaluating the price. Operating cost would be calculated for 330 stream days per year.

Expected annual production capacity would be based on provenness, reliability of the

equipment & process steps as assessed by the OWNER and data furnished by the Bidder

on operating plants using similar equipment & process steps. If required Bidder would

be requested to organize a visit of team of technical experts of OWNER to such

operating plants to verify the claims made by the Bidders and to collect first hand

information from the plant operators. For financial evaluation the unit cost of raw

materials and utilities will be considered as follows:

Alumina : 20,000 Rs. per MT

Steam : 2500 Rs. per MT

Electric Energy : 6.75 Rs. per kWh

Process Water : 25 Rs. per M3

DMW : 40 Rs. per M3

Cooling Water : 3 Rs. per M3

Chilled Water : 5 Rs. per M3

Natural gas : 15 USD per MMBTU

2.2.16.5 Impact of Completion Schedule offered in the Bid:

For completion period extending beyond preferred period indicated in the ITB,- an

adjustment (increase) of 2% per month on installed cost of the plant shall be made.

However, 2% per month increase of CONTRACT PRICE shall be levied for reasonable

period of extended completion time.

The OWNER'S evaluation shall also take into account the following:

a) The availability of spare parts and components within India.

b) The availability of after sales services.


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c) Bidder's past experience in building similar capacity plants on lump sum turn key

based on information furnished by Bidder. Process step / Equipment of similar scope to

that given by detailed specification (Section 6) should have operated satisfactorily for a

minimum period of three years.

d) Bidder's guarantees and guarantee period.

e) Willingness of Bidders to give shop drawings of spare parts and main equipments.

2.2.16.6 Terms and schedule of Payments:

The terms of payment shall be spelt out by the Bidder in his Part-I Bid. Bidder shall

indicate how it anticipates OWNER shall compensate Bidder for the Work performed.

Payment shall be proposed against milestones such as:

-Mobilization / demobilization

-Completion of basic and detailed engineering

-Placement of orders on Subcontractors, vendors

- Delivery of Materials to Site.

-Erection

-Mechanical Completion

-Completion of guarantee test

-Final acceptance

The payment schedule shall be presented in tabular form and as a cash flow curve, both

of which are to be based on the project schedule. The OWNER'S preferred terms of

payment are as per clause 4.34. In the commercial evaluation of the Bids, loading @

11.25 % (CC rate) shall be done in case payment terms quoted are different than

mentioned at Clause no. 4.34.0.

2.2.17 BANK GUARANTEE FOR ADVANCE PAYMENT

2.2.17.1 Bidder shall furnish a Bank Guarantee valid till acceptance of the PLANT by OWNER,

for the amount paid in advance, as per proforma enclosed at Annexure- 2.2. The charges

for confirmation, if any, will be to the Bidder's account.

2.2.18 CONTACTING THE OWNER

2.2.18.1 No Bidder shall contact OWNER on any matter relating to his Bid from the time of

period Bid opening to the time the CONTRACT is awarded.


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2.2.18.2 Any effort by a Bidder to influence OWNER in the OWNER'S Bid evaluation, Bid

comparison or CONTRACT award decisions may result in the rejection of the Bidder's

Bid.

2.2.19 AWARD OF CONTRACT AND OWNER'S RIGHT TO VARY SCOPE OF WORK AT

THE TIME OF AWARD.

2.2.19.1 The determination will take into account the Bidder's financial, technical and production

capabilities. It will also be based on an examination of the documentary evidence of the

Bidders qualification submitted by the Bidder.

2.2.20 OWNER'S RIGHT TO ACCEPT ANY BID AND TO REJECT ANY OR ALL

BIDS

2.2.20.1 OWNER reserves the right to accept or reject any Bid and to annul the Bidding process

and reject all bids, at any time prior to award of CONTRACT, without assigning any

reason whatsoever and without thereby incurring any liability towards the affected

Bidder, or Bidders. There will be no obligation to inform the affected Bidder or Bidders

of the grounds for OWNER'S such action.

2.2.21 NOTIFICATION OF AWARD

2.2.21.1 Prior to the expiration of the period of Bid validity OWNER will notify the successful

Bidder, by Fax / e-mail to be confirmed by letter that his Bid has been accepted and "The

Notification of Award" as above will constitute formation of CONTRACT.

2.2.21.2 The successful Bidder on receipt of "Notification of Award" shall by return mail

acknowledge the same and confirm his acceptance within 15 days, failing which it will

be deemed that notification of award is accepted unconditionally.

2.2.22 SIGNING OF CONTRACT

OWNER will send a draft CONTRACT to the successful Bidder, which will form basis

of discussions and finalization of the CONTRACT. This CONTRACT shall be subject to

the approvals by the Board of Directors, GNFC. In case of any variations suggested by

the Board, shall be incorporated in the CONTRACT subsequently at mutually acceptable


Page (33)

terms between Bidder and OWNER. Within 15 days of receipt of final CONTRACT and

subsequent discussions on changes suggested, if any, successful bidder shall sign the

CONTRACT and return it to the OWNER

2.2.23 PERFORMANCE SECURITY:

Performance security will be as per details mentioned in clause 4.9.0

2.2.24. Failure of the successful Bidder to comply with the requirement of Article 2.2.21.2 shall

constitute sufficient grounds for the annulment of the award in which event OWNER

may make the award to the next lowest evaluated Bidder or call for new Bids, without

prejudice, to pursue right and remedies as set forth in General Conditions of

CONTRACT.

2.2.25 COMPLETION PERIOD

2.2.25.1 The bidders are required to quote their best completion period for works under this

enquiry.

2.2.26 TRANSFER OF TENDER DOCUMENT/PROPOSAL

Transfer of tender document sent to one bidder to other is not permitted similarly transfer

of bid submitted by one bidder to other is not permitted. No alteration in the essence of

bid once submitted shall be permitted.

2.2.27 SUITABILITY OF PLANT

Before submitting their bid the bidder shall ensure that compliance with any

requirements of the specification would not render the plant unsuitable in any respect for

the purposes mentioned or inherent in the Specification. Should the Bidder consider that

compliance with any requirements of the Specification would render the plant unsuitable,

they shall submit a proposal or proposals for modifying the requirements and shall

include these in the "Schedule of Deviations" from the specification.

2.2.28 LOCAL CONDITIONS

It will be imperative on each Bidder to fully inform himself of all local conditions and

factors which may have any effect on the execution of the works covered under these

specifications and documents.


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It shall be understood and agreed that such factors have properly been investigated and

considered while submitting the BID. No claim for financial adjustment to any

CONTRACT awarded under these specifications and documents will be permitted by the

OWNER. Neither any change in the time schedule of the CONTRACT nor any financial

adjustments arising thereof shall be permitted by the OWNER, which are based on the

lack of such clear information or its effect on the cost of the works to the Bidder.

2.2.29 PRICE VARIATION

The Bidder shall quote firm prices / rates in the price, schedule. Firm prices / rates shall

not be subject to any escalation. Bids with variable prices may be disqualified. "Any

changes in statutory taxes and duties in India, subsequent to the due date for submission

of bids, shall suitably be considered by OWNER during evaluation of BID “.

2.2.30 JOINT VENTURE / CONSORTIUM

Bids submitted by a joint venture / consortium of two or more bodies corporate shall

comply with the following requirements.

a) The Bidder shall submit the Bid and the Consortium Agreement duly signed by the

authorized representatives of the members of the Consortium so as to be legally binding

on all members thereof; the arrangement for the project amongst consortium members

needs to be properly defined and acceptable to the OWNER.

b) The leader who shall be nominated as being in charge, and his authorization shall be

evidenced by submitting a power of attorney signed by legally authorized signatories of

all the Consortium members. The leader of the Consortium will always be a pre-qualified

Bidder.

c) The leader shall be authorized to incur liabilities and receive instructions for and on

behalf of any and all partners of the joint venture/ consortium and the entire execution of

the CONTRACT including payment shall be done exclusively with the leader.

d) All member of the consortium shall be liable jointly and severally for the execution of

the WORK/performance of the CONTRACT in accordance with the other terms and / or

conditions of the CONTRACT executed pursuant hereto, and a relevant statement to this

effect shall be included in the authorization mentioned under (b) above as well as in the

Form of Bid and the Form of CONTRACT and;


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e) In case the Bid is submitted by Consortium then the Consortium leader may be

required to submit a CORPORATE GUARANTEE as agreed by the OWNER.

f) Under no circumstances will a Bidder, either as member of consortium or

individually, be allowed to join another consortium of a Bidder or form another

consortium with another Bidder.


Page (36)

ANNEXURE-2.1

DRAFT OF BANK GUARANTEE FOR BID SECURITY DEPOSIT

(To be executed on a non-judicial stamp paper of appropriate value)

To be issued or confirmed by any of the first class international bank or Indian

nationalized Banks or its foreign branches and should be posted at the following address:

Gujarat Narmada Valley Fertilizers & Chemicals Ltd.,

PO: Narmadanagar-392 015,

Dist.: Bharuch, Gujarat, India.

Phone No: 0091 - 2642 - 245817 Fax No 0091 -2642-245817

In consideration of Gujarat Narmada Valley Fertilizers & Chemicals Ltd., having its

registered office at PO: Narmadanagar - 392 015, Dist.: Bharuch, Gujarat, India,

(hereinafter called "THE COMPANY" which expression shall unless repugnant to the

subject or context includes its successors and assigns)

having agreed to exempt the Tendere (hereinafter called

the THE SAID TENDERER(s) which expression shall unless repugnant to the subject or

context includes his successors and assigns) from the demand

under the terms and conditions of tender no _____ for ________.

(Hereinafter called "THE SAID TENDERER" ) of such Earnest Money (Bid

security) deposit for the due fulfillment by the said tenderer(s) of the terms and

conditions contained in

THE SAID TENDER on

production of bank guarantee for Rs. (Rupees only).

1. We _____ bank (hereinafter referred to as 'THE BANK' ) do hereby undertake and

guarantee to pay to the company an amount not

exceeding Rs. (Rupees only)

against any loss or damage caused to or suffered or would be caused to or suffered by

THE SAID COMPANY by reason of any breach by THE SAID TENDERER(s) of any

of the terms and conditions contained in the said tender (the decision of THE

COMPANY as to any such breach having been committed and loss suffered shall be

binding on us).

2. We, ____ THE BANK do hereby undertake and guarantee to pay the


Page (37)

amounts due and payable under this Guarantee without any demur,dispute or objection or

protest or without recourse, protest and without reference to the Tenderer merely on a

demand from THE COMPANY stating that the amount claimed is due by way of loss or

damage caused to or would cause to or suffered by THE COMPANY by reason of any

breach by THE SAID TENDERER(s) of any of the terms or conditions contained

in the said tender or by reason of THE SAID TENDERER'S failure to keep the tender

open. Any such demand made on THE BANK shall be final, conclusive and binding on

the Bank as regards the amount due and payable by THE BANK under this guarantee.

However, our liability under this guarantee shall be restricted to an amount not exceeding

Rs. ______ (Rupees ___________________________________ only).

3. We ____THE BANK further agree that the Guarantee herein contained shall remain

in full force and effect during the period that would be taken for the finalisation of the

said tender and that it shall continue to be enforceable till the said Tender is finally

decided and order placed on the successful tenderer and/ or till all the dues of THE

COMPANY under/or by virtue of the said tender have been fully paid and its claims

satisfied or discharged or till a duly authorised officer of-THE COMPANY certifies that

the terms and conditions of the said Tender have been fully and properly carried out by

THE SAID TENDERER(s) and accordingly discharges the Guarantee unless a demand

or claim under this Guarantee is made on

us in writing on or before the to include 6

months claim over and above the period mentioned in the paragraph for the validity of

the bank guarantee in the tender. We shall be discharged from all liability under this

guarantee thereafter.

4. We _____BANK, lastly undertake not to revoke this Guarantee during its currency

except with the previous consent of THE COMPANY in writing.

5. The bank declares that it has the power to issue the Guarantee and the undersigned has

full powers to do so on behalf of the Bank.

Dated ___ Day of_____201_

Signature of the issuing Authority with seal

FOR BANK

(indicate the name of bank with stamp)


Page (38)

ANNEXURE -2.2

DRAFT OF BANK GUARANTEE FOR DOWN PAYMENT / PROGRESS PAYMENT TO

THE CONTRACTOR

NOTE: This guarantee should be appropriately stamped as per laws of country of issue

To be issued or confirmed by any of the first class international bank or any Indian Nationalized Bank

or its foreign branch and should be posted at the following address:

Gujarat Narmada Valley Fertilizers & Chemicals Ltd.,

PO: Narmadanagar-392 015,

Dist: Bharuch, Gujarat, India.

Phone No: +91 - 2642 - 663431

Fax No : +91 -2642 - 247108

Whereas Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (GNFC) having its registered office at

PO: Narmadanagar - 392 015, Dist.: Bharuch, Gujarat, India, (hereinafter referred to as the OWNER)

which expression shall, unless repugnant to the context include its legal representatives, successors

and assigns, have entered into a contract (hereinafter referred to as the CONTRACT)

with M/s. :________ (hereinafter

referred to as the CONTRACTOR) which expression shall, unless repugnant to the context, include its

legal representative, successors and assigns, for the design, engineering, supply of equipment,

Erection, - Construction and Commissioning of the PLANT, as stated in the contract

And whereas one of the conditions of the CONTRACT is that the OWNER should make a down

payment/ progress/advance

payment of Rs.____ only being _______ percent of the CONTRACT

PRICE against a guarantee in the form of a bank guarantee from a bank in a form acceptable to the

OWNER.

And whereas, at the request of the CONTRACTOR the OWNER has agreed

to accept a bank guarantee from ______

(bank) at its registered office at ______

Now this guarantee witnessed that, in consideration of the OWNER having, at the request of

CONTRACTOR, agreed to accept, a bank guarantee of the

BANK in respect of only required by the


Page (39)

CONTRACTOR from the OWNER for the equipment stipulated in the CONTRACT, which figure of

down payment/ progress payment, shall become reduced and extinguished as hereinafter set forth, the

BANK hereby indemnifies payment, without protest demur and without recourse to the

CONTRACTOR to the said OWNER up to and not exceeding altogether a sum

of only, being the amount of the one hundred.

(100) percent of the down payment / progress payment or such, other unadjusted amount, of the said

down payment, the decision of the OWNER as, to whether the terms and conditions of this guarantee

have been observed shall be final and binding on the BANK.

1. The OWNER may, without affecting BANK'S liabilities and obligation hereunder, grant time

or other indulgence to or compound with the CONTRACTOR or enter into any agreement or agree to

forbear to enforce any of the terms and conditions of the said CONTRACT against the

CONTRACTOR or agree to vary any of the terms and conditions of the said CONTRACT.

2. This guarantee shall not be affected by any change in the constitution of the OWNER by

absorption with any other body or corporation or otherwise, and this guarantee will be available to or

enforceable by such body or corporation!

3. In order to give effect to this guarantee, the OWNER will be entitled to act as if the BANK

were the principal debtor, and the BANK hereby waives all and any of its rights of suretyship.

4. This guarantee shall continue to" be in force notwithstanding the discharge of the

CONTRACTOR by operation of law and shall cease only on payment of the full amount by the

BANK to the OWNER of the amount hereby secured and on the claim of the OWNER against the

CONTRACTOR in respect of the said CONTRACT being satisfied.

5. This guarantee shall be in addition to and not in substitution for any other guarantee or

security for the CONTRACTOR given or to be given to the OWNER in respect of the said

CONTRACT by the BANK (whether alone or jointly with others).

6. Any notice by way of request, demand or otherwise hereunder may be sent by post to the

BANK, addressed as aforesaid, and, if sent by post, it shall be deemed to have been given at the time

when it would be delivered in due course of post, and in proving such notice, when given by post, it

shall be sufficient to prove that the envelope containing the notice was posted, and a certificate, signed

by an officer of the OWNER, to the effect that the envelope was so posted, shall be conclusive.

7. These present shall be governed by and construed in accordance with Indian law.

8. The guarantee herein contained is not revocable by notice during its currency and will remain

in full force until:

a) Payment has been made to the OWNER by the BANK of the aggregate amount payable

hereunder or


Page (40)

b) The said down payment / progress payment has been fully adjusted and extinguished as

hereunder set forth, whichever is earlier. Out of the gross amount of each invoice representing the

full cost of work being affected percent of the

amount due will be deducted by way of adjustment of the said down payment/ progress payment in the

invoices, such that in the last of such earlier invoice as may be agreed to under the terms of Contract,

the residual balance of the down payment / progress payment shall automatically get extinguished

BANK'S

liability under this guarantee is restricted to

(say only).

9. Unless previously cancelled by the OWNER, this indemnity will remain

in force upto months from date of issue of the guarantee,

i.e. upto and will stand automatically cancelled

on the expiry of the said period than contemplated hereunder. Unless demand or claim under this

guarantee is made on bank in writing six months from the date of the expiry of this guarantee, all the

rights of the OWNER against as hereunder shall be forfeited and BANK shall be relieved and

discharged from all liabilities hereunder.

10. The BANK hereby declares that it has the power to issue this guarantee and the undersigned

has full power to do so.

Dated this day of

Signature of the issuing Authority with seal

FOR

BANK

(indicate the name of bank with stamp)


Page (41)

SECTION -3

INFORMATION REQUIRED IN THE BID


Page (42)

SECTION -3 INFORMATION REQUIRED IN THE BID.

3.0.0 The BID shall be submitted simultaneously and in three separate parts in three separate sealed

envelopes as under:

Part - I: Pre-qualification Criteria

Part - II: Technical and un-priced Commercial BID

Part- III: Priced Commercial BID

3.1.0 Part - I: PRE-QUALIFICATION

3.1.0.1 CONTRACTOR Bid submission at Part - I comprise as under:

Sr.

No

Details Required for Prequalification Details to be furnished by

Bidders/Contractors

1 Should have successfully executed at least

one LSTK/LEPC contract of value equal to

more than Indian Rupees 250 million OR 5

million USD.

To give details, indicating name of the project, client,

country, year of execution and cost of project(s) as an

Annexure.

If executed such contract jointly by tie up

arrangement with other engineering contractor, to

give details of such contractor.

BIDDER may associate with contractor who satisfy

this criteria. BIDDER to give details of such

contractor.

2 Should have successfully executed at least

one project for the production of PAC by

offering their own process know-how or by

tie up with other process know-how supplier,

or should tie up with such know-how

supplier. Such know-how should have been

proven for at least 3 years of successful

operation.

To give details , indicating the name of the project,

client, country and year of execution, as an

Annexure.

If having tie up, with know-how supplier, to give

details of such supplier.

Should give details of the plant, client and

performance level indicating capacity utilization, on

stream factor, on-stream days, for each year.

3 Should have carried out Detail engineering by

own OR by engaging other engineering

contractors

In case of Detail engineering by own:

(i) To submit credentials, details indicating name of

the project, client, country, scope of work, year of

execution and value of work.

In case of Detailed engineering by other:

(i) the contractor should have engaged engineering

contractor who has carried


Page (43)

out detailed engineering for PAC Plant. To

indicate the name of intended

contractor(s) of such proven performance and

their credentials, name of the project, client,

country, scope of work, year of execution

and value of work.

Should give details about similar jobs carried

out, name of project, approximate value, year of

execution, time taken for completing detail

engineering activities, as an annexure(s).

Should submit Organization chart, manpower

strength, list of disciplines of engineering

activities being taken-up along with details of no.

of qualified engineers / draftsman in each

discipline like process, mechanical, electrical,

instrumentation, civil etc.

Should have enterprise wide computer network

for commercial application aspects.

List of major software's used for equipment,

piping/ structural design/process & simulation/

project execution.

List of present jobs under execution and

scheduled completion.

4 Financial Strength (i) To indicate name of major

bankers who must be of first

class international category. (ii) Last three years balance sheet.

(iii) Solvency certificate for

executing project of Indian

Rupees 500 million from

your bankers OR 10 million

USD from your bankers.

(iv) Level of borrowings and tie-up details with

bankers for providing funds/ working capital during

execution of project.


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3.1.0.2 Submission of Bid without EMD / Bank Guarantee will not be considered.

3.2.0 Part-II : TECHNICAL PROPOSAL

CONTRACTOR Bid submission at Part - II comprise:

a) The technical proposal

b) The un-priced commercial proposal c) OWNER clarifying & assessing technical matters in the Bid

3.2.1 Credential of the bidder:

3.2.1.1 Company's name, place of business, year of establishment, a list of directors on company's

board, general experience in execution of projects for PAC. Evidence of financial standing,

previous three years Annual Reports and Balance Sheets should be enclosed.

3.2.1.2 A reference list of PAC plants designed and / or built / under construction by the firm, with

names of customers, location, capacities, scope of services provided and year of

commissioning, scheduled / planned & actual completion time.

3.2.1.3 The year-wise Operating data on the plants or capacity over 50,000 MTPA PAC giving

capacity utilization, on-stream days and specific raw material and energy consumption during

last 3 years.

3.2.1.4 The names & resume of key personnel who would be assigned to this project, including

their position in proposed work plan; information on the strength of back-up staff (home

office / Indian associate).

3.2.1.5 Indication of current work-load and possible future loading for the period envisaged for this

project, in terms of engineering man-hour available and committed load.

3.2.1.6 Proposed plan for design, engineering, procurement, material control, erection management

and sub-contracting arrangements, either with associated companies or others.

3.2.1.7 License agreements (exclusive or non-exclusive), or other such arrangements including

patents of a similar nature relevant to this project.

3.2.1.8 Company structure and outline of the plan for carrying out the work, including organization

chart of CONTRACTOR.

3.2.1.9 Intended arrangements to provide training to OWNER'S personnel for operations and

maintenance on similar plants and at vendors workshop.

3.2.1.10 Any possible savings in time schedule compared to that proposed by OWNER, resulting

from the firms previous experience and/or other special circumstances along with

supporting data/documents.

3.2.1.11 List of proprietary items such as equipment and machinery along with name and country of

supply.


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3.2.1.12 Information on dispute(s) and/or arbitration case(s) with client(s) in last 5 years, indicating

whether the disputes are settled or still pending.

3.2.1.13 Any deviation from commercial conditions or technical specifications should be separately

listed giving the reference of clause number of general/special conditions of CONTRACT

or technical specifications.

3.2.1.14 The CONTRACTOR will submit proposed vendor list. This list must be as comprehensive

as practical.

3.2.1.15 A detailed description or the process offered, including overall process scheme and the

specific merits of the process scheme being offered.

3.2.1.16 Process flow diagrams and typical P & I Diagrams indicating the major equipment in

proper flow sequence, flows, temperatures, pressures, compositions, pressure drops for

critical equipments, critical instrumentation & control points.

3.2.1.17 Material and Energy Balances for normal load and at the End of the Run (EOR)

conditions. The material and energy balance shall cover all process route showing input and

output utility streams as well as composition, volumetric flow, molecular weight and

densities or principal process streams at inlet and outlet of each equipment.

3.2.1.18 Detailed Steam and Condensate Balance diagram showing production and consumption

at different points for each level of steam pressure. Cooling Water Balance showing In/Out

temperatures and cooling water flow to each exchanger using cooling water shall be

submitted.

3.2.1.19 Details of Effluent Streams and Treatment System, proposed within Battery Limits and

required outside Battery Limits. Design and guaranteed quality and quantity of various

gaseous emissions and liquid effluents at Battery Limits.

3.2.1.20 Expected Design and Guaranteed Specific Consumption

Figures for raw materials, utilities, consumables & chemicals at rated capacity and

minimum operating load conditions. Consumption figures shall be indicated even in case of

those items, which may be comparatively minor in nature.

3.2.1.21 Anticipated Normal and Peak requirements of Utilities.

3.2.1.22 List, of Electrical Drives with normal & design ratings, a Single Line Electrical Distribution

Diagram (SLD) showing Loads at various voltage levels.

3.2.1.23 Emergency Power Requirement and the list of equipments connected to it.

3.2.1.24 Start-up Requirements of Utilities such as Inert Gas (N2), Steam, DM Water, Process

Water, Instrument Air, Electrical Power etc.

3.2.1.25 Specifications of Chemicals and Raw Materials and their estimated initial requirement and

subsequent consumption during operation.


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3.2.1.26 Plant Layout for Battery Limit plant showing principal equipment and machinery including

detailed floor plans and elevations. The plot plan should show clearances required, roads

and all principal pipe racks.

3.2.1.27 Details of Instrumentation System including the proposed models etc. as also details of the

proposed control systems (DCS). Safety Interlock and Trip system shall be enclosed. A list

of all control valves with purchase specifications, material of construction, codes /

standards used shall be enclosed.

3.2.1.28 List of all Equipments and Machinery (mechanical, electrical, instrumentation included in

the proposal). Data sheets of equipment indicating design code used and sufficient

specification such as those used in enquiry documents giving details like heat load, surface

areas, no. of tubes, size, overall dimensions, thickness, weight, material of construction

lining/cladding (if any), details of internals and packing materials, distributors, design

conditions, fouling factors and corrosion allowances used etc. Sketches may be included for

better understanding of the equipment.

3.2.1.29 Detailed Technical Specifications of the following with approximate tonnage/quantities in

the form of Bill of Material:

- Piping

- Valves

- Chemicals

3.2.1.30 Comprehensive Engineering Specification/Standards and Design Codes for all types of

Equipment/construction including mechanical, electrical & instrumentation proposed to be

adopted by the Bidder.

3.2.1.31 Details of Shop & .Field Testing and Inspection Procedures proposed to be adopted.

Inspection of equipment & machinery should be carried out by a Third Party Inspection

agency as per the specifications enclosed. OWNER also has the right to inspect any

equipment, machinery at any stage.

3.2.1.32 An Implementation Plan showing man-power deployment schedule during various stages of

implementation period, including peak requirements. Bidders shall indicate the schedule,

category and number of personnel proposed for supervisory services during different phases

of work, indicating clearly as to how many of them would be deployed by CONTRACTOR.

3.2.1.33 Project Plan showing project organization, project team, project services offered by the

CONTRACTOR at home office and at site. A time schedule for the complete project in the

form of a Bar Chart and Network indicating the time allocated for various activities.

3.2.1.34 Any Other Technical Detail which the Bidder feels necessary may also be incorporated.

3.2.1.35 All the above should conform to the philosophy and detailed specifications in Section-6

including its Annexure of this ITB.


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3.3.0 UNPRICED COMMERCIAL PROPOSAL

3.3.1 This should include all other commercial information, such as terms and mode of payments,

CONTRACT stipulations (deviation thereof) etc. for which broad guidelines have been set

out in Conditions of CONTRACT at Section - 4.

It should also include complete listing of all deviations to this ITB

3.4.0 Part – III - PRICED COMMERCIAL PROPOSAL

CONTRACTOR Bid submission at Part - III shall comprise:

a) A fully priced commercial Bid (corresponding to the Bidder's Part - II technical

and unpriced commercial submissions).

b) A complete listing of all deviations to this ITB (as a separate volume)

3.4.1 Commercial proposal with prices:

Bidders shall submit their Priced Bid on the Summary of Commercial Bid as shown at

Annexure - 1.1. of Section-I. Firm Prices shall be quoted for supply of Equipment &

Materials and services indicated below:

3.4.1.1 License and Know-how Fees:

Bidders shall indicate separately lumpsum fees for grant of License(s)and for the right to use

Process(es) know-how and technical information associated with the Plant(s). R&D cess as

applicable shall also be indicated. This fee shall be fixed and not subject to escalation.

3.4.1.2 Engineering Design Package(s):

Bidders shall quote a lump sum fee for supplying process design data and basic engineering

documentation etc. This fee shall remain fixed and not subject to escalation.

3.4.1.3 Detailed Design and Engineering Fee :

Bidders shall quote a lumpsum fee for supply of detailed design and engineering services

including HAZOP study by Bidder. This fee shall be fixed and not subject to escalation.

3.4.1.4 Supply of Equipment and Materials

A Lump-sum price for supply of Equipments / Materials required for the plant shall be

quoted by the Bidder. The Bidder shall also submit a break-up of CIF (Indian Port) / CPT

PLANT of all items of equipments and likely source country of supply, Inland transport costs

for imported items. Cost of spares for two years of operation shall also be quoted separately.

The Lump-sum price for Equipment / Materials quoted by the Bidder shall be inclusive of

cost of procurement, inspection (including Third Party inspection, IBR and other statutory

charges, if any) and expediting as these costs would not be separately reimbursable / payable.


Page (48)

3.4.1.5 Erection & Construction:

Bidders shall quote a fixed price for PLANT erection and PLANT construction including all

Civil & Structural work and Buildings. The above price shall be inclusive of Stores

Management at site as no separate fees shall be payable on this account.

3.4.1.6 Pre-commissioning and Commissioning Services:

Bidders shall quote a Fixed Fee for pre-commissioning and commissioning services.

OWNER shall provide operating staff for assistance for these activities.

3.5.0 TAXES

3.5.1 Taxes leviable on the Bidder in his home country shall be borne by him. To enable evaluation

of different offers on a common basis, Bidders shall offer their prices with break up as net of

Taxes leviable (on the Fixed Fees as well as on the income of Expatriate personnel) in India

and applicable taxes. Please refer to relevant article in Conditions of CONTRACT for further

details.

3.5.2 The Bidder, while quoting, shall consider income tax relief under double taxation avoidance

treaty between the Government of India and CONTRACTOR'S country, if any.


Page (49)

SECTION - 4

GENERAL CONDITIONS OF CONTRACT


Page (50)

SECTION - 4

GENERAL CONDITIONS OF CONTRACT

4.1.0 DEFINITIONS

In this CONTRACT, the following terms shall be interpreted as indicated.

4.1.1 APPROVAL shall mean and include the written consent, either manuscript, type written or printed

statement, under signature or seal, as the case may be, of the OWNER or their authorized

representative on documents, drawings or other particulars in relation to the CONTRACT.

4.1.2 BATTERY LIMIT means boundaries enclosing the area within which PLANT and associated

facilities as set forth in CONTRACT shall be located.

4.1.3 CONTRACT means the agreement entered into for the PLANT between the OWNER and the

CONTRACTOR signed by the parties including all attachments, subsequent amendments and

appendices thereto mutually agreed between OWNER and CONTRACTOR and all documents

incorporated by reference therein.

4.1.4 CONTRACTOR means the successful Bidder, with whom Owner enters into CONTRACT for

supplying Goods & Services for PLANT as specified, including its representatives, successors and

permitted assignees.

4.1.5 CONTRACT PRICE means the price payable to the CONTRACTOR under the CONTRACT for

the full, proper and satisfying performance of its contractual obligations.

4.1.6 DAY means a continuous period of twenty-four hours commencing from a particular point of

time.

4.1.7 DELIVERY shall mean the date as shown on the Bill of Lading, Airway Bill or Lorry as the case

may be, shall be deemed to be the date of delivery along with the invoice together with all other

documentation as shall be specified in the conditions of CONTRACT.

4.1.8 DRAWINGS shall mean and include engineering drawings, sketches, showing plans, sections and

elevations related to the CONTRACT together with modification and/or revision thereto.

4.1.9 ENGINEER shall mean the Engineer or Executive-In-charge of the Project Site nominated by

OWNER at SITE.

4.1.10 EQUIPMENT means the machinery, equipment, materials, spares, chemicals and other items

within BATTERY LIMITS, required for the reliable, efficient operation of PLANT and which

form part of the PLANT.

4.1.11 FOB, C&F, CIF, CPT, FCA, FAS, FOT and Ex Works means the terms as defined in the

International Rules for the interpretation of the Trade Terms 2000 (INCOTERMS) with the latest

modifications incorporated.

4.1.12 GOODS means all of the EQUIPMENT, machinery, and/or other materials, items which the

CONTRACTOR is required to supply to the OWNER under the CONTRACT.


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4.1.13 INSPECTOR shall mean any person or outside agency nominated by OWNER to inspect the

EQUIPMENT stage wise as well as final inspection, before dispatch, at CONTRACTOR'S works

and on receipt at SITE as per the terms of CONTRACT.

4.1.14 MONTH means a continuing period, commencing from a particular day in a calendar month and

ending on the day immediately prior to a corresponding day in the following month.

4.1.15 OWNER shall mean GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS

LIMITED and shall include all their legal representatives, successors and assignees.

4.1.16 PLANT means PAC ( Poly Aluminum Chloride) plant of 50,000 MTPA (18% Al2O3) capacity

with manufacturing facilities complete in all respects for the production of 50,000 MTPA (18%

Al2O3) PAC, using 32% HCl, on continuous basis and can operate for more than 8000 hours in a

year and having other associated facilities and to be erected at OWNER'S SITE at Dahej, Dist-

Bharuch, Gujarat in the Republic of India.

4.1.17 SERVICE means Design, Engineering, procurement, construction & erection, commissioning,

provision of technical assistance, training and other such obligations of the CONTRACTOR

covered under the CONTRACT.

4.1.18 SITE means the Project Site located within Owner's existing TDI-II Complex at Dahej, Dist-

Bharuch Gujarat, India, where WORK is to be carried out for the PLANT.

4.1.19 SPECIFICATIONS shall mean and include schedules, detailed

description, and statement of technical data, performance characteristics, standards & codes as

applicable and specified in the CONTRACT.

4.1.20 SUB-CONTRACT shall mean order placed by the CONTRACTOR for any portion of the order or

WORK after necessary consent of OWNER

4.1.21 SUB-CONTRACTOR shall mean any person or persons or firm or their legal representatives,

successors, assignees to whom part of order has been sub-let by the CONTRACTOR.

4.1.22 TEST shall mean such process or processes to be carried out by the CONTRACTOR as are

prescribed in the CONTRACT in order to ascertain quality, workmanship, performance and

efficiency of EQUIPMENT or part thereof.

4.1.23 VENDOR means (as the case may be) any or all persons, firms or companies selected by

CONTRACTOR with approval in writing, of OWNER from whom EQUIPMENT / MATERIALS

are procured by CONTRACTOR.

4.1.24 WORK means all duties, services, responsibilities and obligations to be performed/discharged by

CONTRACTOR pursuant to CONTRACT.

4.2.0 SCOPE OF CONTRACT

4.2.1 Scope of the CONTRACT shall be as defined in detail in Special Conditions of CONTRACT

at Section-5, and as per Technical Specifications at Section-6.

4.2.2 Completeness of the EQUIPMENT / PLANT / MATERIAL shall be the responsibility of the

CONTRACTOR. Any EQUIPMENT, fittings and accessories, which may not be specifically

mentioned in the ITB specifications but which are usual or necessary for the satisfactory


Page (52)

functioning of the PLANT / EQUIPMENT (successful operation and functioning of the

EQUIPMENT being CONTRACTOR'S responsibility) shall be provided by the

CONTRACTOR without any extra cost.

4.2.3 The CONTRACTOR shall ensure that the modern practices in the manufacture of high grade

EQUIPMENT are followed notwithstanding any omission in the specifications.

The supplies shall be in strict compliance to the specifications. Other relevant standards for

fitting and attachments shall also be strictly followed. Components for which there are no

relevant standards shall be designed and manufactured as per good engineering practices.

The true intent and meaning of these documents is that CONTRACTOR shall in all respects

design, engineer, ensure quality of manufacture and supply the EQUIPMENT, Erect &

Construct, Commission and hand over the entire PLANT in a thorough workmanlike manner

and supply the same in prescribed time to the entire satisfaction of OWNER.

4.2.4 The CONTRACTOR shall furnish Four (4) copies in English language of technical

documents, final drawings, preservation instructions, operation and maintenance manuals, test

certificates, spare parts catalogues in a bound book for all rotating EQUIPMENT and in a

folder for other EQUIPMENT, before dispatch under confirmation to the OWNER.

4.2.5 Any material of Chinese make or origine is not accepted. CONTRACTOR shall ensure the

same.

4.2.6 All dimensions and weights should be in the METRIC / SI system.

4.2.7 All EQUIPMENT / PLANT / MATERIAL to be supplied and WORK to be carried out under

the CONTRACT shall conform to and comply with the provision of relevant Regulations /

Acts (of local Government) as may be applicable to the type of EQUIPMENT / WORK to be

carried out and necessary certificates shall be furnished.

4.2.8 The CONTRACTOR shall provide cross sectional drawings wherever applicable to identify

the spare part numbers and their location, e.g. the sizes of bearings / seals, their make and

number shall be furnished.

4.2.9 Specifications, design and drawings issued to the CONTRACTOR along with tender

specifications and CONTRACT are not sold or given but loaned. These remain property of

OWNER or their assignees and are subject to recall by OWNER. The CONTRACTOR and

his employees shall not make use of the drawing, specifications and technical information for

any purpose at any time except for manufacture against the CONTRACT and shall not

disclose the same to any person, firm or corporate authorities, without prior written

permission of OWNER. All such details shall be kept strictly confidential.

4.2.10 Clearance of imported equipment, loading, transportation of Indigenous & Imported items to

site, unloading, storage, handling, site assembly, fabrication, insulation, painting, testing,

arranging commissioning spares, performance and guarantee test runs as per CONTRACT

specifications.

In case of award of CONTRACT to a foreign CONTRACTOR the CONTRACTOR shall take

all necessary steps and comply with all formalities to get the CONTRACT registered with the


Page (53)

appropriate Indian Custom Authorities to have the various imported equipments including

spares, assessed as applicable.

All equipments to be supplied and work to be carried out under the CONTRACT shall

conform to and comply with the provisions of relevant regulations/acts (State Govt, or Central

Government) as may be applicable to the type of equipment/work to be carried out and

necessary certificates shall be furnished.

4.3.0 STANDARDS

4.3.1 The GOODS supplied under this CONTRACT shall conform to the standards mentioned in

the Technical Specifications, or such other standards which ensure an equal or higher quality.

4.4.0 INSTRUCTIONS, DIRECTIONS AND CORRESPONDENCE

4.4.1 The EQUIPMENT / PLANT / MATERIALS and all deliverable described in CONTRACT

are to be supplied according to the standards, data sheets, tables, specifications and drawings

attached thereto and/or enclosed with the CONTRACT itself and according to all conditions

both general and specific enclosed with the CONTRACT, unless any or all of them shall have

been modified or cancelled in writing as a whole or in part.

a) All instructions and orders to CONTRACTOR shall, excepting what is herein provided

be given by OWNER.

b) All the WORK shall be carried out under the overall direction of and to the satisfaction

of OWNER.

c) All communications including technical-commercial clarification and/or comments shall

be addressed to OWNER and shall always bear reference to the CONTRACT.

d) Invoices for payment against CONTRACT shall be addressed to OWNER.

e) The CONTRACT number shall be shown on all invoices, communications, packing lists,

containers and Bills of Lading, etc.

4.4.2 Correspondence on technical and commercial matters shall be dealt with in separate letters

and each copy of the letter shall be complete with all Annexures.

4.4.3 Correspondence with respect to Expediting and Inspection shall be done directly with

INSPECTOR mentioned in the CONTRACT with a copy to OWNER

4.5.0 CONTRACT CONFIRMATION

4.5.1 Within fifteen (15) DAYS from the date of receipt of the CONTRACT, CONTRACTOR

shall sign the CONTRACT and return it to the OWNER. The copy of CONTRACT shall be

signed by the authorized officer of the successful BIDDER.


Page (54)

4.5.2 After CONTRACT confirmation/signing the terms and conditions contained therein take

precedence over CONTRACTOR'S bid conditions and all previous correspondence.

4.5.3 If after award of CONTRACT, CONTRACTOR does not acknowledge receipt of award

and/or fails to deposit the Performance Bond within the time period specified in the

CONTRACT the OWNER reserves the right to cancel the CONTRACT without prejudice to

various rights and remedies the OWNER may be entitled to as per Terms and Conditions of

CONTRACT.

4.6.0 MODIFICATIONS IN CONTRACT

4.6.1 All modifications leading to changes in the CONTRACT with respect to technical and/or

commercial aspects shall be considered valid only when accepted in writing by OWNER by

issuing amendment to the CONTRACT. Issuance of acceptance or otherwise in such cases

shall not be any ground for extension of agreed delivery dates and also shall not affect the

performance of CONTRACT in any manner except to the extent mutually agreed to through a

modification of CONTRACT.

4.6.2 OWNER shall not be bound by any printed conditions, provisions in the CONTRACTORS

Bid Forms or acknowledgement of CONTRACT, invoice, packing list and other documents

which purport to impose any condition at variance with or supplemental to CONTRACT.

4.7.0 USE OF CONTRACT DOCUMENTS AND INFORMATION

4.7.1 The CONTRACTOR shall not, without the OWNER'S prior written consent disclose the

CONTRACT or any provision thereof, or any specification, plan, drawing, pattern, sample or

information furnished by or on behalf of the OWNER in connection therewith, to any person

other than a person employed by the CONTRACTOR in the performance of the CONTRACT.

Disclosure to any such employed person shall be made in confidence and shall extend only so

far as may be necessary for purpose of such performance.

4.7.2 The CONTRACTOR shall not without the OWNER'S prior written consent make use of any

document or information enumerated in clause 4.7.1 except for purpose of performing the

CONTRACT.

4.7.3 Any document, other than the CONTRACT itself, enumerated in clause 4.7.1 shall remain the

property of the OWNER and shall be returned (in all copies) to the OWNER on completion of

the CONTRACTOR'S performance under the CONTRACT if so required by the OWNER.

4.8.0 PATENT RIGHTS

4.8.1 The CONTRACTOR shall indemnify the OWNER against all third party claims of

infringement of patent, trademark or industrial design rights arising from use of the GOODS

and all services or any part thereof in the OWNER'S country as detailed in clause 5.13 of

Section 5, Special conditions of CONTRACT.


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4.8.2 MECHANICS LIEN

CONTRACTOR agrees to indemnify and hold harmless OWNER against all laborers’

material, man's and/or mechanic's liens arising from its work, and shall keep the premises of

OWNER free from all such claims, liens and encumbrances.

4.9.0 PERFORMANCE SECURITY

4.9.1 Within 30 DAYS after receipt of CONTRACT by CONTRACTOR, the CONTRACTOR

shall furnish to the owner a performance security in the form of bank guarantee as per

Annexure-4.1 issued or counter guaranteed by any of the first class international bank /

scheduled bank (excluding co-operative banks) acceptable to OWNER, for an amount

equivalent to 10% of the value of the CONTRACT PRICE or as specified in the special

condition of the CONTRACT, the charges for confirmation, if any, will be to the

CONTRACTOR's account.

4.9.2 The proceeds of Performance Bond shall be appropriated by the OWNER as compensation

for any loss resulting from the CONTRACTOR'S failure to complete his obligations under

the CONTRACT without prejudice to any of the rights or remedies the purchaser may be

entitled to as per Terms and Conditions of CONTRACT.

4.9.3 The performance bond shall be denominated in the currency of CONTRACT or in US dollars.

A Bank Guarantee or confirmed irrevocable Letter of Credit issued by a Bank located in the

OWNER'S country or abroad acceptable to the OWNER and in form provided in the bid

documents or another form acceptable to the OWNER

4.9.4 The Performance Security in the form of Bank Guarantee shall be valid for the duration of

the contract completion period plus any defects liability period. The period of defects'

liability shall be 18 months from the date of successful Guarantee Test Run of the PLANT.

The Bank Guarantee shall suitably be extended in the event of repair/replacement of

EQUIPMENT or any part thereof during defect liability period to take care of extended

warranty period of repair/replacement.

The Performance Security will be discharged by the owner not later than 15 DAYS following

the date of completion of the CONTRACTOR'S performance obligations, including any

warranty obligations, under the CONTRACT.

Note: Any Bank Guarantee may it be for advance payment, bid security or performance

shall be issued or counter guaranteed by any of the first class international bank or

Indian nationalized / Scheduled banks( excluding co-operative banks) or its foreign

branches or in the alternative the guarantee may be given by the foreign bank duly

counter guaranteed/ confirmed by a INDIAN Nationalized / Scheduled Banks excluding

co-operative banks) or its foreign branches. The charges for confirmation, if any, shall

be to the CONTRACTOR'S account.

4.10.0 INSPECTION & TESTING 4.10.1 The OWNER or its representative, at its own cost, shall have the right to Inspect and/or to

Test the GOODS to confirm their conformity to the CONTRACT specifications. Technical Specifications giving reference of applicable codes/standards shall specify what Inspections


Page (56)

and Tests are required to be conducted and where they are to be conducted. The OWNER shall notify the CONTRACTOR in writing of the identity of any representatives retained for these purposes.

4.10.2 The Inspection and Tests may be conducted on the premises of the CONTRACTOR or SUB-

CONTRACTOR(s) or VENDOR(s) at the point of DELIVERY and/or at the GOODS final destination. All reasonable facilities and assistance including access to all drawings and production data shall be furnished to the INSPECTOR at no charge to the OWNER.

4.10.3 Should any inspected or tested GOODS fail to conform to the specifications, the OWNER

may reject them and the CONTRACTOR, without affecting the project / mechanical completion schedule,- shall either replace the rejected GOODS or make all alterations necessary to meet specification requirements free of cost to the OWNER.

4.10.4 The OWNER'S right to inspect and where necessary, reject the GOODS after the GOODS

arrival at the SITE shall in no way be limited or waived by reason of the GOODS having previously been inspected, tested and passed by the OWNER or their representative prior to the GOODS shipment from the country of origin and till FINAL ACCEPTANCE of the PLANT.

The INSPECTOR shall follow the progress of the manufacture of the EQUIPMENT under the CONTRACT to ensure that the requirements outlined in the CONTRACT are not being deviated from with respect to Schedule and Quality.

CONTRACTOR shall allow the INSPECTOR to visit, during working hours, the workshops relevant to execution of the CONTRACT during the entire period of CONTRACT validity and INSPECTOR will have the right to inspect at all stages of manufacture right from identification of material up to final completion.

4.10.7 In order to enable OWNER'S representatives to obtain entry visas in time, CONTRACTOR

shall notify the OWNER two months before assembly, testing and packing of main EQUIPMENT and if requested assist OWNER'S representatives in getting visas in the shortest possible time.

4.10.8 CONTRACTOR shall place at the disposal of the INSPECTOR free of charge all tools,

instruments and other apparatus necessary for the Inspection and/or Testing of the EQUIPMENT. The INSPECTOR is entitled to prohibit the use and despatch of EQUIPMENT and/or materials, which have failed to comply with the characteristics required for the EQUIPMENT during Tests and Inspections.

4.10.9 CONTRACTOR shall ensure that the same permission is granted by his SUB-

CONTRACTOR(s). 4.10.10 In respect of this inspection CONTRACTOR shall advise in writing of any delay in the

program at the earliest possible date, describing in detail what has caused the delay and the proposed corrective action.

4.10.11 All tests and trials in general OF EQUIPMENT & MATERIALS shall be witnessed by the

INSPECTOR. Therefore, CONTRACTOR shall confirm with OWNER by e-mail or FAX about the exact date of inspection with at least 30 DAYS notice. CONTRACTOR shall specify the items and quantities ready for testing and indicate whether a Preliminary or Final Test is to be carried out.

4.10.12 If on receipt of this notice, OWNER decides to waive the right to witness the test, timely

information will be given to CONTRACTOR accordingly.


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4.10.13 Any and all expenses incurred in connection with Tests, preparation of reports and analysis made by qualified laboratories, necessary technical documents, testing documents and drawings shall be at CONTRACTOR'S cost. The technical documents shall include the references and numbers of the standard used in the construction and, wherever deemed practical by the INSPECTOR copy of such standards. The INSPECTOR shall attach importance to the views given by CONTRACTOR or his SUB¬CONTRACTOR.

4.10.14 Nothing in Clauses 4.10.1 to 4 10.13 shall in any way release the CONTRACTOR from any

warranty or other obligations under this CONTRACT. 4.10.15 Arrangements for all inspections required by Local Authorities and as specified in technical

specifications shall be made by CONTRACTOR. 4.10.16 Copies of all test results/report of the tests shall be furnished promptly by the supplier to the

CONTRACTOR/OWNER.

4.11.0 TIME SCHEDULE AND PROGRESS REPORTING 4.11.1 Time Schedule Network/Bar Chart.

4.11.1.2 Together with the CONTRACT confirmation, CONTRACTOR shall submit to OWNER his

time schedule regarding the documentation supply and manufacture of EQUIPMENT and materials as well as information on his SUB-CONTRACTS to be placed with third parties, construction and commissioning including the dates on which CONTRACTOR intends to issue such Sub-contracts.

4.11.1.3 The time schedule will be in the form of a network and a bar chart clearly indicating all main

or key events regarding documentation, supply of raw materials, manufacturing, testing and delivery, civil works, erection, commissioning, Plant hand over etc.

4.11.1.4 The original issue and subsequent revisions CONTRACTORS / SUB-CONTRACTOR's time

schedule shall be sent to OWNER in two copies (of which one shall be a reproducible). 4.11.1.5 The time schedule network/bar chart shall be updated at least every MONTH during the

period of CONTRACT.

4.11.2 PROGRESS TREND CHART/MONTHLY REPORT 4.11.2.1 CONTRACTOR shall report monthly to OWNER of the execution of CONTRACT and

achievement of targets set out in time bar chart. 4.11.2.2 The progress will be expressed in percentage in the progress trend chart issued by OWNER at

the time of award of CONTRACT. 4.11.2.3 The first issue of the progress trend chart will be forwarded together with the time bar chart

along with CONTRACT confirmation. 4.11.2.4 The monthly reporting will be the updating of the progress trend chart. 4.11.3 OWNER shall also review the physical/actual progress of WORK on the basis of

CONTRACTOR'S time schedule documentation.


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4.11.4 Irrespective of such inspection, CONTRACTOR shall advise OWNER at the earliest possible date of any anticipated delay in the program.

4.11.5 In the event that the delay is caused by a delay in the delivery of sub-contracted

EQUIPMENT, CONTRACTOR shall be accountable for the delay and submit details together with copies of the appropriate orders and agreements with SUB-CONTRACTOR.

4.11.6 Notwithstanding the above, in case progress on the execution of CONTRACT at various

stages is not as per phased time schedule and is not satisfactory in the opinion of the OWNER, which shall be conclusive or if the CONTRACTOR shall neglect to execute the

CONTRACT with due diligence and expedition or shall contravene the provision of the CONTRACT, OWNER may give notice of the same in writing to the CONTRACTOR calling upon him to make good the failure, neglect or contravention complained of. Should the CONTRACTOR fail to comply with such notice within the period considered reasonable by OWNER and specified in such note, the OWNER shall have the option and be at liberty to take the CONTRACT wholly or in part at the CONTRACTOR'S risk and cost and recover from the CONTRACTOR, all extra costs incurred by the OWNER on this account and agreed liquidated damages however within agreed limits of overall liability.

4.11.7 In case the progress of work is unduly and unreasonably delayed by the CONTRACTOR for

reasons directly & solely attributable to him, the OWNER at the CONTRACTOR'S risk and cost and without prejudice to any of the rights under the CONTRACT reserve the right to;

A) Terminate the CONTRACT wholly or partially and complete it by the OWNER or reassign it

to others after giving 30 days notice in writing to the CONTRACTOR to remedy the cause complained of.

B) Make any modifications, deletions, additions to the CONTRACT as the OWNER may consider necessary to ensure its satisfactory execution after giving 7 days notice to CONTRACTOR to remedy the cause complained of.

4.11.8 Should the CONTRACTOR'S preparation for the commencement of the work or any portion

of it or its subsequent rate of progress be from any cause whatsoever, so slow that in the opinion of the OWNER, the CONTRACTOR will not be able to complete the work or any portion thereof within the stipulated time for completion, the provisions of sub-article 4.11.7 above shall apply.

4.12.0 PACKING 4.12.1 The CONTRACTOR shall ensure that packing of the GOODS as is required to prevent their

damage or deterioration during transit to their final destination is provided. 4.12.2 The packing, markings and documentation within and outside the packages shall comply

strictly with the CONTRACT and subject to any subsequent instructions ordered by the OWNER.

4.12.3 CONTRACTOR shall be obliged to make compensation for all losses suffered by OWNER

due to improper packing of EQUIPMENT. 4.12.4 Government of India has announced restrictions on import of wooden packed material into

India. If at all supplier supply material in Wooden packing or supply the palletized cargo then that wood shall be certified to have been appropriately treated according to International Plant Protection Convention (IPPC).

If, in absence of aforementioned certificate, the consignment is detained at customs, all extra

charges shall be to CONTRACTOR'S Account.


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4.13.0 DELIVERY AND DOCUMENTS

4.13.1 The delivery terms would be binding and final, consequently, no delay would be allowed

without the written approval by OWNER. Any request concerning delay, though submitted

by Registered Post, will be void unless accepted by OWNER through a modification to the

CONTRACT.

4.13.2 Delivery time shall include time for submission of drawings for approval, incorporation of

comments, if any, and final approval of drawings by OWNER.

4.13.3 In the event of delay in achieving the MECHANICAL COMPLETION of the PLANT,

CONTRACTOR shall pay agreed liquidated damages, as stipulated in the CONTRACT.

4.13.4 In case of delay in MECHANICAL COMPLETION beyond the stipulated date , for reason

attributable to CONTRATOR , even though normal extension of completion time is allowed

by OWNER, all extra costs on account of changes of statutory regulations/Acts or increase in

price on any other account including price variation clause, shall not apply to the

CONTRACT price and shall be borne by the CONTRACTOR

4.13.5 Special care shall be taken by the CONTRACTOR to furnish manufacturer's TEST

certificates, material of construction, make, type, pressure ratings wherever applicable and

included in the SCOPE of supply of EQUIPMENT.

4.14.0 INSURANCE

4.14.1 The CONTRACTOR at his cost shall arrange, secure and maintain all insurance as may be

pertinent to the WORKS and obligatory in terms of law to protect his interest and interest of

the OWNER against all perils detailed herein. The form and the limit of such insurance as

defined herein together with the underwriter in each case shall be as acceptable to the

OWNER. However, irrespective or such acceptance, the responsibility to maintain adequate

insurance coverage at all times including third party liability, which shall be 10% of the

CONTRACT PRICE during the period of CONTRACT shall be as of CONTRACTOR alone.

The CONTRACTOR'S failure in this regard shall not relieve him of any of his contractual

responsibilities and obligations. The insurance covers to be in the name of CONTRACTOR

and OWNER shall be named as co-insured in the policies. The CONTRACTOR shall,

however, be authorized to deal directly with insurance company or companies and shall be

responsible in regard to maintenance of all insurance covers. Further the insurance should be

in Indian Rupees / freely convertible currency.

4.14.2 Any loss or damage to the EQUIPMENT/other property of PLANT during handling,

transportation, storage, erection, putting the EQUIPMENT/other property of PLANT into

satisfactory operation and all activities to be performed till the successful completion of trial

operation of the PLANT and ACCEPTANCE of the PLANT shall be to the account of the

CONTRACTOR. The CONTRACTOR shall be responsible for preference of all claims and

make good the damages or loss by way for repair and/or replacement of the EQUIPMENT,

damaged or lost. The transfer of title shall not in any way relieve the CONTRACTOR of the

above responsibility during the period of CONTRACT. The CONTRACTOR shall provide

the OWNER with copies of all insurance policies and documents taken out by him in

pursuance of the CONTRACT. Such copies of documents shall be submitted to the OWNER

immediately after such insurance coverage. The CONTRACTOR shall also inform the

OWNER in writing at least sixty (60) DAYS in advance regarding the expiry/cancellation and


Page (60)

/or change in any of such documents and ensure revalidation, renewal etc., as may be

necessary, well in time.

4.14.3 License / facilities, to the extent it remains the responsibility of the OWNER, in respect of

supplies to be made by the CONTRACTOR from outside India required for purposes of

replacement of EQUIPMENT/other property of PLANT lost in transit and/or during erection

and/or during storage shall be made available by the OWNER. CONTRACTOR shall

however, be required to follow the procedure as may be laid down by the OWNER to

facilitate him arranging such license / facilities. The perils required to be covered under the

insurance shall include, but not be limited to fire and allied risks, miscellaneous accidents

(erection risks), workman compensation risks, loss or damage in transit, theft, pilferage, riot

and strikes and malicious damages, civil commotion, weather conditions, accidents of all

kinds, war risks (during ocean transportation only) , commissioning /testing etc. the scope of

such insurance shall be adequate to cover the replacement/reinstatement cost of the

EQUIPMENT/other property of PLANT for all risks till the EQUIPMENT/other property of

PLANT is taken over by the OWNER. The OWNER will have no objection to

CONTRACTOR'S taking two insurance policies, one towards marine insurance covering all

risks up to and including completion of goods on CIF Indian Port basis transportation, storage,

erection and performance of all activities till the EQUIPMENT/other property of PLANT are

taken over by the OWNER. The insurance policies to be taken should be on replacement value

basis and/or insurance cover and the amount of claim available from the underwriters, the

CONTRACTOR shall be EQUIPMENT/other property of PLANT/materials and to ensure

their availability as per project requirements without additional financial liability to the

OWNER.

4.14.4 All cost on account of insurance liabilities covered under the CONTRACT will be to the

CONTRACTOR'S account and will be included in the CONTRACT price. The

CONTRACTOR, while arranging the insurance, shall ensure to obtain all discounts on

premium may be available for higher volume or for reason of financing arrangement of the

project.

4.14.5 The CONTRACTOR shall be fully responsible for pursuing and settling all claims with the

underwriters in the event of accident, injury, damage or loss likely to form a claim under the

above insurance policies, the CONTRACTOR shall quickly as possible submit such details as

are necessary for settling such claims by underwriters and shall also provide information and

assistance necessary to settle the claims. The CONTRACTOR shall also keep OWNER fully

informed about progress of each case.

4.15.0 DESPATCH, TRANSPORTATION / SHIPPING

4.15.1 CONTRACTOR shall be responsible for despatch of the EQUIPMENT / Material by

sea/rail/road/air after proper packing and protection. The consignment shall be dispatched

after inspection and acceptance by the OWNER unless otherwise agreed to in writing,

however such inspection shall not constitute waiver of the CONTRACTOR'S obligations,

responsibilities for the EQUIPMENT including care, safety, preservation in any way and

manner and the CONTRACTOR’s responsibility and obligation in this behalf shall continue

till ACCEPTANCE OF PLANT.

4.15.2 On-Deck Shipment should not be made without prior permission of OWNER. However, in

case of towers, reactors, vessels and other large sized EQUIPMENT, CONTRACTOR may at

its own discretion, make on-desk shipment, without OWNER'S prier permission. In case of


Page (61)

damage to such EQUIPMENT, during delivery or at any stage before ACCEPTANCE of

PLANT, CONTRACTOR shall be responsible for repair / replacement of EQUIPMENT. Part

dispatches of the EQUIPMENT shall not be resorted to unless otherwise agreed to in writing

or provided in CONTRACT.

4.15.2.1 Clean onboard Bill of Lading for all offshore supplies shall be drawn as under:

For CIF Shipments

Consignee: CONTRACTOR

Project details: 50,000 MTPA PAC Plant.

Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC), DAHEJ,

District - Bharuch, Gujarat, India.

4.15.3 PROPERTY IN GOODS / EQUIPMENT

4.15.3.1 As to import GOODS/EQUIPMENT whether supplied on FOB or CIF or FCA basis, title to

and property in GOODS/EQUIPMENT shall pass to OWNER on high seas or on port of

receipt as the case maybe. Notwithstanding the transfer of the title to and property in

GOODS/ EQUIPMENT to OWNER, CONTRACTOR shall carry out all obligations in

regard thereto as stipulated in CONTRACT.

4.15.3.2 As to GOODS/EQUIPMENT purchased in India, title to and property in

GOODS/EQUIPMENT shall pass to OWNER , ex-works VENDOR'S shop for items

procured within state of Gujarat, for items procured outside Gujarat the tile shall be

transferred to OWNER in transit . Notwithstanding the transfer of the title to and property in

GOODS/EQUIPMENT to OWNER, CONTRACTOR shall carryout all obligations in regard

thereto as stipulated in the CONTRACT.

4.15.3.3 The care and custody responsibility of CONTRACTOR for the GOODS, EQUIPMENT and

PLANT shall terminate upon ACCEPTANCE OF THE PLANT.

4.15.4.0 ASSEMBLY MARKS AND NAME PLATES

4.15.4.1 All components, parts of the EQUIPMENT, shall be indelibly hard marked with identification

marks, comprising EQUIPMENT, part numbers, and CONTRACT number which shall also

be shown on drawing to facilitate speedy identification, assembling or dismantling.

4.15.4.2 On each EQUIPMENT, a name plate indicating basic details, pressure rating, wherever

applicable, code, number of EQUIPMENT, electrical characteristics in case of electrical

EQUIPMENT, name of instrument with tag No., manufacturer's name shall be fixed at proper

place.

4.15.4.3 For packages where marking is not possible at least two metallic name plates must be affixed.

Marking on the plates will be by means of engraving or indelible paint and will include the

information listed above


Page (62)

4.15.4.4 Shipping documents must always be presented in the number of copies indicated in the

CONTRACT. The CONTRACT will also include details regarding the shipping

documentation.

4.15.5 Despatch / Shipping notice

a) CONTRACTOR shall notify OWNER by FAX/e-mail for his information the

expected date of delivery of a consignment, of date of readiness of EQUIPMENT

for shipment, total gross weight and total volume.

b) Other shipping documents shall be air-mailed to OWNER as given hereunder:

Site Project Office Office

B/L Originals 1 1

B/L Non-negotiable copies 3 1

Certificate of origin duly 1 1

endorsed by a trade association,

Chamber of Commerce or similar body.

Packing List 7 1

Ocean Freight Bill 1 1

Inspection Release Note 7 1

Final Test Certificate 7 1

Including Third Party Inspection

Certificates whenever applicable

Cable to Insurance Co. 3 1

Advance Shipping Notice 1 1

Instruction Manuals/Operating 11 1

Manuals.

4.15.6 DESPATCH/SHIPMENT NOTICE FOR INSURANCE

CONTRACTOR shall send to OWNER by FAX or e-mail intimations of despatches

indicating items despatched, quantity, value, weight and carrier particulars followed up by

despatches of detailed documents as per CONTRACT.

4.15.7 HEAVY LIFT OR OVER-DIMENSIONAL CONSIGNMENTS

4.15.7.1 For road transport in India, packages exceeding one or more of the following measurements:

Weight 10 tones, length 5.5 m, width 2.12 m, height 2.1 m, will be considered heavy lift or

over dimensional consignments (HLC's or ODC's).


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4.15.7.2 For Railway transport in India, packages exceeding one or more of the following measurement

will be considered as over-dimension

Broad Gauge

a) length 13716 mm. b) maximum width 2845 mm. c) maximum height 2743 mm. d) top width at max. height 610 mm. e) height of max. width 2133 mm. f) weight 54 tonne

4.15.7.3 CONTRACTOR shall make his own arrangements for movement of all consignments

including ODC for obtaining the approval of the INDIAN Railways, CONTRACTOR shall

need to submit the following particulars regarding each ODC to Railways.

a) Length of package.

b) Height of the package at the top (in centre) & sides.

c) Width at top, centre and bottom

d) Dimension of the projections/nozzles, if any, along with their location on the

equipment.

e) Gross and net weight of the package.

f) Centre of gravity on different axis.

g) Packing and lashing arrangement.

h) Mode of loading and unloading.

i) If special wagon/mode is to be adopted for the transport of the package, the details

of the same are to be provided in a drawing. Not later than three months before

completion ex-works, supplier shall send two copies and one reproducible of each

of the drawings for the equipments having dimensions exceeding those stated in

clause 4.15.7.2 to the OWNER.CONTRACTOR shall without prejudice to the

foregoing supply such other and further information as may be required by

INDIAN Railways/transportation CONTRACTORS in India for each ODC.

4.16.0 INCIDENTAL SERVICES

4 16.1 The CONTRACTOR'S SCOPE of WORK may be required to cover any or all of the

following services if opted by OWNER, at mutually agreed terms and conditions

a) Performance or supervision or maintenance and/or repair of the PLANT after acceptance

for a period of time agreed to by the parties, provided that this service shall not relieve

the CONTRACTOR of any Warranty Obligations under this CONTRACT.

b) Conduct of training of the OWNER'S personnel, at the plant and/or on-site, in assembly,

start-up operation, maintenance and/or repair of the plants.

4.16.2 CONTRACTOR'S personnel will follow the normal working hours at site, which are 48 hours

per week, 6 DAYS of 8 hrs / DAY.


Page (64)

4.16.3 At the request of OWNER, CONTRACTOR shall at his expense, dismiss from WORK and

replace any such employee as OWNER, may deem incompetent or careless or whose

continued employment is deemed inimical to the interest of the OWNER or against public

interest.

4.16.4 Other conditions of WORK at site shall be mutually discussed and settled.

4.17.0 SPARE PARTS, MAINTENANCE TOOLS, LUBRICANTS

4.17.1 As specified in the Special Conditions of CONTRACT that ; CONTRACTOR would be required

to provide all of the following materials and notifications pertaining to spare parts along with the

MAIN EQUIPMENT.

a) Special tools and gauges required for normal maintenance and special handling and lifting

appliances, if any, for the EQUIPMENT, shall be supplied with main EQUIPMENT to

OWNER.

b) Such spare parts as the OWNER may opt to purchase with main EQUIPMENT provided

that this option shall not relieve the CONTRACTOR of any Warranty Obligations under the

CONTRACT.

c) Furnishing at no cost to the OWNER, the blue prints, drawings and specifications of the

spare parts. Supply item-wise list of each item of spare parts and maintenance tools

requirements.

d) Spare parts for commissioning and maintenance for all Equipments. A list of the spare

parts for 2 year operation as proposed by the CONTRACTOR may be furnished.

e) All the spare for the equipment under the CONTRACT will strictly conform to the

specification and other relevant documents and will be identical to the corresponding main

equipment/components supplied under the CONTRACT and shall be fully interchangeable.

f) The CONTRACTOR will provide the OWNER with all addresses and particulars of his

SUB-CONTRACTORS while placing the order on VENDORS for items/components/

equipment covered under the CONTRACT and will further ensure with his vendors that the

owner, if so desired, will have the right to place order for spare parts directly on them on

mutually agreed terms based on offers of such VENDORS.

g) Interchangability of each item to be specified which will be considered while evaluation of

BID

4.17.2 Spare parts shall be new and of first class quality as per engineering standards/codes, free of any

defects (even concealed), deficiency in Design, Materials and Workmanship and also shall be

completely interchangeable with the corresponding parts.

4.17.3 Type and sizes of bearings/seals shall be clearly indicated.

4.17.4 Spare parts shall be packed for long storage under tropical,-climatic conditions in suitable cases,

clearly marked as to their intended purpose.


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4.17.5 Lubricants

4.17.5.1 Whenever lubricants are required, CONTRACTOR shall indicate the quantity of lubricants

required for the first filling, the frequency of changing, the quantity of lubricants required for 1

year's continuous operation and the type of recommended lubricants indicating the commercial

name (trade mark), quality and grade CONTRACTOR shall indicate various equivalent of

lubricants available in India.

4.18.0 WARRANTEES AND GUARANTEES

4.18.1.0 Materials and Workmanship Warranty

4.18.1.1 The CONTRACTOR shall fully warrant that the GOODS supplied under the CONTRACT are

new, unused, of the most recent or current models and incorporates all recent improvements in

design and materials unless provided otherwise in the CONTRACT. The CONTRACTOR shall

further warrant that all the GOODS supplied under this CONTRACT shall be of first quality

according to specifications, have no defect (even concealed) arising from design, materials or

workmanship or form any act or omission of the CONTRACT that may develop under normal

use of the supplied GOODS in the conditions prevailing in the country of final destination.

4.18.1.2 This warranty shall be valid for 18 months from the date of acceptance of PLANT for all the

GOODS (except otherwise specified). Should any defects be noticed in design, material and /

or workmanship within 18 months from the date of acceptance of PLANT, OWNER shall

inform CONTRACTOR and CONTRACTOR shall immediately on' receipt of such intimation

depute their personnel within 7 DAYS to investigate the causes of defects and arrange

rectification / replacement / modification of the defective GOODS/EQUIPMENT at SITE

without any cost to OWNER within a reasonable period. If the CONTRACTOR fails to take

proper corrective action to repair/replace defect satisfactorily within a reasonable period,

OWNER shall be free to take such corrective action as may be deemed necessary at

CONTRACTOR'S risk and cost, after giving notice to the CONTRACTOR. The OWNER shall

promptly notify the CONTRACTOR in writing of any claims arising under this warranty.

4.18.1.3 Damage to the machinery and/or EQUIPMENT deriving from incomplete, erroneous

instructions issued by CONTRACTOR will be considered CONTRACTOR'S fault and will be

treated according to the provisions of warranty clause. Normal wear and tear shall not come

under purview of this clause.

4.18.1.4 In case defects are of such nature that EQUIPMENT shall have to be taken to

CONTRACTOR'S works for rectification etc., CONTRACTOR shall take the EQUIPMENT at

his cost after giving necessary undertaking or security as may be required by the OWNER.

OWNER shall, if so required by the CONTRACTOR, dispatch the EQUIPMENT by quickest

mode on freight to pay basis to the CONTRACTOR'S works. After repairs CONTRACTOR

shall deliver the EQUIPMENT at SITE on freight paid basis. All risks to transit to and from

shall be borne by the CONTRACTOR.

4.18.1.5 EQUIPMENT or part thereof so repaired or replaced shall have further warranty for a period of

18 months from the date of acceptance and the bank guarantee for materials and workmanship

shall be suitably extended.

4.18.1.6 If the repairs, replacements or modifications referred are of such nature as may affect the

efficiency of the EQUIPMENT, OWNER shall have right to give the CONTRACTOR within


Page (66)

one MONTH of such replacement/renewal notice in writing to carry out tests as may be

required for acceptance of the EQUIPMENT.

4.18.1.7 If the CONTRACTOR fails to meet his obligation to repair or replace defective goods within a

reasonable period of time, if CONTRACTOR refuses to carry out the WORK under the

guarantee clause and implied guarantee conditions, if danger is anticipated or in case of severe

urgency, OWNER shall be entitled to carry out at CONTRACTOR'S cost and risk, repair

WORK or replacement deliveries or have the same carried out by a third party. Taxes and

duties of any kind whatsoever imposed by the authorities of the country of CONTRACTOR or

his SUB¬CONTRACTOR until delivery, shall be borne by CONTRACTOR

(Bidder shall submit above details along with technical and un-priced commercial Bid).

4.18.2 PERFORMANCE GUARANTEE

4.18.2.1 CONTRACTOR shall guarantee that , the performance of the PLANT and EQUIPMENT and

all services supplied under the CONTRACT shall be strictly in conformity with the specifications and shall perform the duties specified in the FINAL PROPOSAL / TECHNICAL SPECIFICATIONS under the CONTRACT.

4.18.2.2 If the performance of the PLANT and any of the EQUIPMENT fails to prove the guarantee

implicitly or explicitly set forth in the FINAL PROPOSAL / TECHNICAL SPECIFICATIONS, CONTRACTOR shall investigate the causes and provide free of cost to OWNER, design, engineering, materials and services and EQUIPMENT within a reasonable period to prove guarantees. CONTRACTOR liability in this respect shall be unlimited.

4.18.2.3 If the CONTRACTOR fails to prove the guarantees within stipulated period in the

CONTRACT, OWNER shall have the option to take over the PLANT/EQUIPMENT and rectify, if possible, the PLANT/EQUIPMENT to fulfill the guarantees and/or to make necessary additions to make up the deficiency at CONTRACTOR'S risk and cost. All expenditure incurred by the OWNER in this regard shall be to CONTRACTOR'S account.

4.18.3 CONSTRUCTION AND LOAD DATA 4.18.3.1 CONTRACTOR shall be responsible for all Civil and Structural work, foundations, insulating

and painting works, erection, site fabrication, piping, instrumentation, electrical installation, and other miscellaneous construction jobs of the PLANT leading to acceptance of PLANT. CONTRACTOR shall organize these activities in appropriate sequence and use proper methods giving due regard to the requirements of safety, quality, sound engineering practice, compliance with relevant codes and regulations, and for achieving acceptance of PLANT.

4.18.3.2 CONTRACTOR shall be responsible for correctness of the load data for designing of civil

foundations. 4.18.3.3 In the event of notice of defects later on, in the Civil works due to incorrect data furnished by

the CONTRACTOR, the cost incurred for re-doing, rectifying foundation, shall be borne by the CONTRACTOR.

4.19.0 SUB-CONTRACTS 4.19.1 Approval of Major SUB-CONTRACTORS. Except as otherwise specified in this CONTRACT, CONTRACTOR shall, as soon as


Page (67)

practicable and before commencement of the WORK, furnish to OWNER, for acceptance a list, including address and name of contact person, of all proposed major SUB¬CONTRACTORS together with a copy or description of any warranties which are to be supplied by such major SUB¬CONTRACTORS. Any changes to such list of major SUB¬CONTRACTORS shall also require the prior approval of OWNER.

4.19.2 Relations with SUB-CONTRACTORS. All WORK performed or materials supplied by major SUB- CONTRACTOR shall be

pursuant to an appropriate SUB- CONTRACT, PURCHASE ORDER or similar agreement which shall, as appropriate, contain provisions that:

4.19.2.1 Preserve and protect all the rights of OWNER here under the WORK to be performed or

materials supplied under the PURCHASE ORDER or SUB-CONTRACT; 4.19.2.2 Required that such WORK be performed or materials be fabricated, supplied and installed in

strict accordance with the applicable requirements of this CONTRACT. 4.19.2.3 Obligate such SUB-CONTRACTOR to consent to and be bound by those obligations under

this CONTRACT which by their terms' 'are intended to also obligate such SUB-CONTRACTORS, including the provisions of this clause.

4.19.2.4 Require such SUB-CONTRACTOR to provide and maintain adequate insurance consistent

with requirements for companies of similar size and performing similar services. Permit the assignment of such SUB-CONTRACT by CONTRACTOR to OWNER as collateral security, and

4.19.2.5 Include a price list (which shall be binding to the extent reasonably feasible for a period of

two (2) years from the date of such PURCHASE ORDER or SUB-CONTRACT ) covering all spare and replacement parts relating to the subject matter of such PURCHASE ORDER or SUB-CONTRACT.

4.19.3 CONTRACTOR Responsible for WORK. CONTRACTOR is responsible for the WORK, and that the performance thereof conforms in

all respects to the requirements of this CONTRACT, regardless of any failure of any SUB¬CONTRACTOR to perform or any disagreement between any SUB-CONTRACTORS or between any SUB-CONTRACTOR and CONTRACTOR. CONTRACTOR shall furnish such information relative to its SUB-CONTRACTORS (including copies of unpaid SUBCONTRACTS or PURCHASE ORDER) as OWNER may request.

4.19.4 Damages. CONTRACTOR shall agree to hold all SUB-CONTRACTORS, including all persons directly

or indirectly employed by them, responsible for any damages due to breach of CONTRACT or any negligent act and to diligently endeavor to effect recoveries in such damages.

4.20.0 DELAY IN THE CONTRACTOR'S PERFORMANCE

4.20.1 CONTRACTOR shall ensure that and would be responsible for delivery of the GOODS and

performance of services in accordance with the time schedule guaranteed by the

CONTRACTOR under SPECIAL CONDITIONS OF CONTRACT.


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4.20.2 An excessive delay by the CONTRACTOR in the performance of its contractual obligations

shall render the CONTRACTOR liable to any or all of the following sanctions, forfeiture of its

performance security, imposition of liquidated damages, and/or termination of the

CONTRACT for default.

4.21.0 LIQUIDATED DAMAGES

4.21.1 If the CONTRACTOR fails to achieve the MECHANICAL COMPLETION of the PLANT

or perform the services within the time period(s) specified in the CONTRACT, the OWNER

shall, without prejudice to his other remedies under the CONTRACT, deduct from the

CONTRACT price, as liquidated damages, a sum calculated as per the relevant Clause of

Special Conditions of CONTRACT, including subsequent modifications & price escalation.

4.21.2 CONTRACTOR shall be liable to pay penalties for any deviation in the specified product

quality guaranteed by the supplier as stipulated in the CONTRACT.

4.22.0 REJECTIONS, REMOVAL OF REJECTED EQUIPMENT AND REPLACEMENT

4.22.1 Preliminary inspection at VENDOR'S WORK by INSPECTOR shall not prejudice OWNER

for rejection of the EQUIPMENT on final inspection at site or claim under warranty

provisions.

4.22.2 If the EQUIPMENTS are not of specification or fail to perform specified duties or otherwise

not satisfactory, the OWNER shall be entitled to reject the EQUIPMENT/ MATERIAL or part

thereof and ask for free replacement within reasonable time failing which obtain his

requirements from elsewhere at CONTRACTOR'S cost and risk.

4.22.3 In the event of such rejection, the OWNER shall be entitled to use of the EQUIPMENT in a

reasonable and proper manner for a time reasonably sufficient to enable him to obtain

replacement.

4.22.4 Nothing in this clause shall be deemed to deprive the OWNER and/or affect any rights under

the CONTRACT which he may otherwise have in respect of such defects or deficiencies or in

any way relieve the CONTRACTOR of his obligation under the CONTRACT.

4.22.5 EQUIPMENT rejected by the OWNER shall be removed by the CONTRACTOR at his cost

within 14 DAYS of notice after repaying the amounts received against the supply. The

OWNER shall in no way be responsible for any deterioration or damage to the EQUIPMENT

under any circumstances whatsoever.

4.22.6 In case of rejection of EQUIPMENT, OWNER shall have the right to recover the amounts, if

any, paid from any of his invoice pending with OWNER or by alternative method.

4.23.0 TERMINATION OF CONTRACT

4.23.1 TERMINATION FOR DEFAULT

4.23.1.1 The OWNER may without prejudice to any other remedy for breach of CONTRACT,

terminate the CONTRACT in whole or in part, by written notice of default sent to the

CONTRACTOR.

a) If the CONTRACTOR fails to perform as per agreed time schedule or


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b) If the CONTRACTOR fails to perform any other obligation(s) under the

CONTRACT, and

c) If the CONTRACTOR, in either of the above circumstances, does not rectify his

failure within a period of 30 DAYS (or such longer period as the OWNER may

authorize in writing) after receipt of the default notice from the OWNER.

4.23.1.2 In the event the OWNER terminates the CONTRACT in whole or in part, pursuant to clause

4.23.1.1 the OWNER may take alternative actions, upon such terms and in such manner as he

deems appropriate, GOODS and services similar to those undelivered and the

CONTRACTOR shall be liable to the OWNER for any excess costs for such similar GOODS

provided in the CONTRACT for incomplete portions. However, the CONTRACTOR shall

continue performance of the CONTRACT to the extent not terminated.

4.23.2 Termination for Insolvency

4.23.2.1 The OWNER may at any time terminate the CONTRACT giving written notice to the

CONTRACTOR, without compensation to the CONTRACTOR, if the CONTRACTOR

becomes bankrupt or otherwise insolvent, provided that such termination will not prejudice or

affect any right of action or remedy which has occurred or will accrue thereafter to the

OWNER.

4.23.3 Termination for Convenience

4.23.3.1 The OWNER may, by written notice sent to the CONTRACTOR, terminate the

CONTRACT, in whole or in part, at any time for his convenience. The notice of termination

shall specify that termination is for the OWNER'S convenience, the extent to which

performance of WORK under the CONTRACT is terminated and the date upon which such

termination becomes effective.

4.23.3.2 The GOODS that are complete and ready for shipment within 30 DAYS after the

CONTRACTOR'S receipt of notice of termination shall be purchased by OWNER at the

CONTRACT terms and prices. For remaining GOODS & SERVICES, the OWNER 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 CONTRACTOR an agreed amount for

partially completed GOODS & SERVICES and for materials and parts

previously procured by the CONTRACTOR.

4.24.0 FORCE MAJEURE

4.24.1 Neither the CONTRACTOR/ SUBCONTRACTOR nor the OWNER shall be considered in

default in the performance of their contractual obligations under the CONTRACT, as long as

such performance is prevented or delayed, for reasons, such as Acts of God, severe

earthquake, typhoon or cyclone (except monsoon), floods, lightning, landslide, fire or

explosions, plague or epidemics, strikes, lockouts (lasting more than 10 consecutive calendar

DAYS), sabotage, blockade, war, riots, invasion, act of foreign enemies, hostilities (whether

war be declared or not) civil war, rebellion, revolution, insurrection/or military usurped

power or confiscation or trade embargoes or destruction or requisition by order of any

Government or any Public Authority. CONTRACTOR shall within one week notify


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OWNER above the occurrence of the force majeure event and provide OWNER details of the

arising and ceasing of the impediment. At the end of the impediment, CONTRACTOR shall

provide justificatory documentation countersigned by the local Chamber of Commerce.

4.24.2 Should one or both the parties be prevented from fulfilling the contractual obligations by a

state of Force Majeure lasting continuously for a period of 6 weeks, the two parties shall

consult each other regarding the future implementation of the CONTRACT. The mere

shortage of labor, materials or utilities shall not constitute force majeure unless caused by

circumstances which are themselves Force Majeure.

4.24.3 CONTRACTOR and OWNER shall endeavour to prevent, overcome or remove the causes of

Force Majeure.

4.24.4 No ground for exemption can be invoked if CONTRACTOR has failed to give timely notice

by registered letter and subsequently supported it by documentary evidence.

4.25.0 RESOLUTION OF DISPUTES/ARBITRATION

4.25.1 The OWNER and the CONTRACTOR shall make every effort to resolve amicably by direct

informal negotiations any disagreement or dispute arising between them under or in

connection with the CONTRACT.

4.25.2 If, after thirty DAYS from the commencement of such informal negotiations, the OWNER

and the CONTRACTOR have been unable to resolve amicably a CONTRACT dispute, either

party may require that the dispute be referred for resolution to the formal mechanism as

specified hereunder.

4.25.3 Legal Construction

Subject to the provision of Clause - 4.25 4, the CONTRACT shall be in all respects, construed

and operated as an Indian CONTRACT and in accordance with Indian Laws as in force for

the time being and is subject to the jurisdiction of the Bharuch Court.

4.25.4 Arbitration

All disputes which cannot be settled by mutual negotiations, the matter shall be referred to

and determined by arbitration in accordance with Indian Arbitration and Conciliation Act

1996, as amended from time to time, or rules of conciliation of international chamber of

commerce. Venue for which shall be Bharuch, Gujarat, India.

4.25.4.1 Any dispute or difference between the parties in connection with this CONTRACT shall be

referred to and determined by arbitration in Bharuch, Gujarat, India.

4.25.4.2 The tribunal shall consist of three arbitrators and shall be constituted as follows

4.25.4.3 The claimant shall nominate an arbitrator and may be notice in writing call on the other party

to nominate an arbitrator within 60 DAYS of the notice, failing which such arbitrator shall at

the request of the claimant be appointed by the Indian Council of Arbitration, New Delhi.

4.25.4.4 The third arbitrator who shall serve as chairman of the tribunal shall be appointed by

agreement between the parties or, in default of agreement within 30 days of the appointment

of the second arbitrator, he shall be appointed by the Indian Council of Arbitration, New


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Delhi, at the written request of either or both of the parties.

4.25.4.5 Should a vacancy arise because any arbitrator dies, or resigns, refuses to act, or becomes

incapable or performing his functions, the vacancy shall be filled by whose nominee he was

and if such party falls to supply the vacancy so caused, the same shall be filled by the method

by which the arbitrator is to be appointed in default of a party as provided in Clause 4.25.4.3

above.

4.25.4.6 The arbitration shall be subject to the rules of arbitration of the Indian Council of Arbitration,

New Delhi. Subject to the said rules, the procedure to be followed shall be agreed by the

parties or, in default of agreement, determined by the tribunal.

4.25.4.7 In the event of default by either party in respect of any procedural order made by the tribunal,

the tribunal shall have power to proceed with the arbitration in the absence of that party and

to deliver its award.

4.25.4.8 The law governing the substantive issues between the parties shall be the law of India.

4.25.4.9 The arbitration proceeding shall be governed in accordance with the provisions of Indian

Arbitration and Conciliation Act 1996, as amended from time to time.

4.25.4.10 As soon as practicable after being constituted, the tribunal shall;

4.25.4.11 Hold a preliminary meeting with the representatives of the parties for the purposes of

establishing the procedure to be followed.

4.25:4.12 In determining the procedure to be followed, the tribunal shall observe the following

provisions. The language of the proceedings shall be English.

4.25.4.13 The parties shall also have the right to present the oral testimony of witnesses of fact.

4.25.4.14 If either party fails within the prescribed time to appear or to present its case at any stage of

the proceeding, the tribunal may of its own motion or at the request of either party, after

giving reasonable notice to each party, proceed with the arbitration and make an award.

4.25.4.15 All the decisions of the tribunal shall be by a majority vote. All awards, interim or final, shall

be in writing and signed by each arbitrator and shall state the reasons upon which the award is

based. In the event that one arbitrator refuses to sign the award, the two arbitrators forming

the majority shall state in the award the circumstances in which the signature of the remaining

arbitrator has been withheld.

4.25.4.16 The tribunal shall keep a record of all its proceedings and decisions, and a record of all

evidence, whether from experts or witnesses of act, at oral hearings.

4.25.4.17 All awards of the tribunal shall be final and binding on the parties.

4.26.0 GOVERNING LANGUAGE

4.26.1 The CONTRACT shall be written in English language as specified by the OWNER in the

Instructions to Bidders. All literature, correspondence and other documents pertaining to the

CONTRACT, which are exchanged by the parties, shall be written in English language.

Printed literature in any other language shall only be considered, if it is accompanied by


Page (72)

English translation. For purposes of interpretation, English translation shall govern and be

binding on all parties.

4.26.2 Governing Laws

All questions arising out of this CONTRACT including but not limited to its validity,

interpretation, performance and breach shall be governed by India laws.

4.27.0 NOTICES

4.27.1 Any notice given by one parry to the other pursuant to this CONTRACT shall be sent in

writing or by FAX or e-mail and confirmed in writing to the address specified for that

purpose in the CONTRACT.

4.27.2 A notice shall be effective when delivered or on the notice's effective date, whichever is later.

4.28.0 TAXES AND DUTIES

4.28.1 CONTRACTOR shall be entirely responsible for all taxes, stamp duties, license fees, and

other such levies imposed outside the OWNER'S country.

4.28.2 CONTRACTOR shall be entirely responsible for all taxes, duties, license fees etc. incurred

until delivery of the contracted goods and services, to the OWNER. However, for any

statutory variation in Indian -tax laws after award of the CONTRACT the CONTRACT value

shall be suitably increased / decreased, until scheduled PLANT ACCEPTANCE . However

for delay in PLANT ACCEPTANCE for reasons solely attributable to CONTRACTOR any

increase in taxes, duties shall be to the CONTRACTOR's account.

4.28.3 All taxes / levies as may be levied / leviable including income tax in respect of payments to be

made to the CONTRACTOR under this CONTRACT shall be borne and paid by

CONTRACTORS. The OWNER however, shall provide all assistance to the

CONTRACTOR/SUPPLIER in connection with the same. Any amount which the OWNER

may be required by law to deduct at source towards income tax shall be deducted by the

OWNER out of the amount payable to CONTRACTOR and the balance amount shall be paid

by the OWNER to the CONTRACTOR. The OWNER shall however, provide the

CONTRACTOR the receipts evidencing the payment.

4.28.4 As regards Indian income tax, surcharge on income tax and any other corporate tax, the

OWNER shall not bear any tax liability whatsoever irrespective of the mode of contracting.

The CONTRACTOR (whether domestic or foreign) shall be liable and responsible for

payment of such tax if attracted under the provision of the law, foreign/non-resident

CONTRACTOR are advised to check all provisions of the Indian Income Tax Act and

circulars issued by the central board of direct taxes, Government of India.

4.28.5 Personal income tax payable, if any, in respect of salary of the CONTRACTOR'S personnel

shall be payable by the individual deputed by CONTRACTOR. The CONTRACTOR shall,

however, consider that the personnel who are to be deputed in India for the rendering of the

supervisory services satisfy the following conditions:

1) The stay of such personnel should not exceed 90 DAYS in a financial year.

2) The personnel so deputed should not be a resident of India in any of the four (4)


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financial years immediately proceeding the financial year in which he arrived in India.

4.28.6 As per the existing definition of RESIDENT in India, as contained in section 6 of the income

tax act (act 1962), an individual is stated to be a "RESIDENT" of India in any financial year,

if

a) He stays in INDIA for 182 DAYS or more during a previous year, OR

b) He stays in India for 60 DAYS or more during a previous year, and 365 DAYS or

more during the 4 years preceding that previous year.

Note: Financial year referred to in this clause means the year beginning on 1st April and ending on

31st March.

4.28.8 In case of imports, applicable Custom Duties etc. shall be paid by the OWNER as per clause

no. 4.28.2.

In case of indigenous supplies, applicable Taxes and Duties etc. shall be paid by the

CONTRACTOR as per clause no. 4.28.2. CONTRACTOR shall submit all relevant

documents (Excise Invoice / VATable Tax Invoice etc.) to OWNER for availing CENVAT /

VAT- credit. In case of failure of providing such documents, the amount paid for such taxes /

duties shall be recovered from CONTRACTOR.

The relevant documents for availing CENVAT benefits shall have to be submitted by the

CONTRACTOR within the stipulated time to OWNER.

4.29.0 INDEMNIFICATION

4.29.1 CONTRACTOR shall indemnify and hold harmless, the OWNER from all claims, losses,

demand, causes of action or suit arising out of the process know-how, services, labour,

EQUIPMENT and materials furnished by CONTRACTOR under the CONTRACT as

detailed in clause 5.14 of special conditions of CONTRACT in Section-5.

4.30.0 PERMITS AND CERTIFICATES

4.30.1 CONTRACTOR shall procure at its expenses, all necessary permits, certificates and licenses

required by virtue of all applicable laws, regulations, ordinances and other rules in effect at

the place where any of the WORK is to be performed, and CONTRACTOR shall further hold

OWNER harmless from liability or penalty which might be imposed by reason of any

asserted or established violation of such laws, regulations, ordinances or other rules. OWNER

will provide the necessary permits for CONTRACTOR'S personnel to undertake any WORK

in India in connection with CONTRACT. All the permits, licenses required for setting up of

the PLANT shall be obtained by OWNER on his name, for which CONTRACTOR shall

provide technical information which OWNER may require.

4.31. 0 INSTRUCTIONS FOR INVOICING AND PAYMENT DOCUMENTATION

4.31.1 Invoicing: Invoicing shall be in compliance with the stipulation of the CONTRACT and the

following instructions:

CONTRACTOR is liable for all costs arising from non-compliance with the instructions.


Page (74)

As far as possible description of goods in the invoice and dispatch documents shall match the

description in contract

The invoicing for supplies, inland transportation, Engineering Services, erection and

commissioning etc. shall be raised separately by the CONTRACTOR and shall be duly

certified by OWNER.

The invoice shall contain the following information:

i) CONTRACT no.

ii) Item no., quantity and complete description

iii) ITEM-WISE net price (unit and total) of the equipment when applicable

iv) Net amount payable by deducting possible advance payments already invoiced if

any and the guarantee retention amount if any from the total value of the

equipment being invoiced

v) Statement that the equipment are meant for Gujarat Narmada Valley Fertilizers &

Chemicals Limited, PO: Narmadanagar - 392 015, District -Bharuch, Gujarat,

India

vi) Marks, number and quantity of packages as well as contents of each package

vii) Statement that the equipment are exempted from certain specified duties and taxes

in supplier's country (in case of foreign order),

viii) Delivery Challan No. / B/L / LR no.

The country of origin is stated in the separate certificate of origin.

The signed invoices, original and copy shall be made on CONTRACTOR'S letter head and

shall be duly signed.

Invoices for advance and progress payment(s) shall state the information under (i), (ii) and

(iii).

Invoices for guarantee retention money shall state the information under (i) to (viii).

4.31.2 Payment Documentation

The following documents shall be presented by CONTRACTOR to CONTRACTOR'S

bankers to draw payment(s) against L/C where such payment(s) is (are) stipulated in the

CONTRACT.

4.31.2.1 Advance payment

1) Invoice for amount of advance in original and two (2) copies

2) Written, unconditional acceptance of the CONTRACT in one (1) original plus two (2)


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copies

3) Bank guarantee in the prescribed proforma of the amount equal to the advance payment in

one (l) copy of original bank guarantee valid up to final acceptance issued or counter

guaranteed/confirmed by any of the first class international bank or Indian nationalized /

scheduled banks or its foreign branches.

4) One (1) copy of the original performance security in the prescribed proforma for 10% of

the CONTRACT value valid up to the final acceptance plus defects liability period issued or

counter guaranteed/confirmed by any of the first class international bank or Indian

nationalized / scheduled bank or its foreign branches. The charges for counter-

guarantee/confirmation, if any, will be to CONTRACTOR'S account

4.31.2.2 Progress Payment

Invoice for progress payment amount in original and two (2) copies duly certified by owner.

4.32.0 SPECIFICATIONS

CONTRACTOR agrees; that all EQUIPMENT or MATERIALS furnished will be in strict

accordance with the specifications as provided, however, that any apparent omission or error

in the specifications will be met by the CONTRACTOR if such omission is necessary for the

functioning of the equipment or material to be supplied and that the CONTRACTOR, prior to

proceeding with the work under CONTRACT, will call to the attention of OWNER any such

omission or error or ambiguity in the specifications requiring clarification.

4.33.0 GENERAL

4.33.1 In the event that terms and conditions stipulated in the General Conditions of CONTRACT

should deviate from Special Terms and Conditions stipulated in the CONTRACT, the latter

shall-prevail.

4.33.2 Losses due to non-compliance of Instructions

Losses or damages occurring to the OWNER owing to CONTRACTOR'S failure to comply

with any of the instructions given by the OWNER in connection with the execution of the

CONTRACT shall be recoverable from the CONTRACTOR

4.33.3 Training of Personnel

The CONTRACTOR shall make necessary arrangements for the practical training in

operation and maintenance of reasonable number of Technicians/Operators/ Engineers of the

OWNER, in reference PAC plant and/or at their office without any extra cost. The expenses

of training shall be borne by the OWNER like travel, lodging and boarding.

4.33.4 Recovery of Sums/Dues

All cost, damages or expenses which the OWNER may have paid for which under the

CONTRACT, CONTRACTOR is liable, may be recovered by the OWNER (he being

irrevocably authorized to do so) from any money due to or becoming due to the

CONTRACTOR under this CONTRACT or other CONTRACTS and/or may be recovered by


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action at law or otherwise. If the sums due to the CONTRACTOR be not sufficient to recover

the recoverable amount, the CONTRACTOR shall pay to the OWNER, on demand the

balance amount.

4.33.5 Payments etc not to affect rights of the OWNER

No sum paid on account by the OWNER nor any extension of the date for completion granted

by the OWNER shall affect or prejudice the rights of the OWNER against the

CONTRACTOR or relieve the CONTRACTOR of his obligation for the due fulfillment of

the CONTRACT.

4.33.6 Cut-Off Dates

No claims or correspondence on this CONTRACT shall be entertained by the OWNER after 3

months of expiry of the Performance Guarantee and issue of acceptance Certificate by the

OWNER.

4.33.7 Paragraph heading

The paragraph heading in these conditions shall not affect the construction thereof.

4.33.8 Entire Agreement

All the terms and conditions of CONTRACT shall supersede any understanding, promise and

presentation, warranty or conditions which conflicts with terms of CONTRACT. No waiver

alternation or modification of any provision here to shall be binding on either party unless

approved in writing by the parties to the CONTRACT.

4.33.9 Acceptance

With the acceptance of the CONTRACT with all its terms and conditions, CONTRACTOR

waives and considers as void any and all of CONTRACTOR'S general sales conditions.

4.33.10 CONTRACT PRICE

4.33.10.1 CONTRACT PRICE as given under Article 4.33.10.2 is inclusive of the cost / fees of

CONTRACTOR'S obligations as described under Article 5.3.0 & 5..4.0 and given below

briefly but not limited to the following:

a) Process License,

b) Know-how, Basic Engineering and Detailed Engineering,

c) Supply of Plant, Equipment, Bulk Materials, Chemicals, Lubricants, etc.,

d) Supply of Commissioning and 2 Years Operational spares,

e) Civil and Structural works,

f) Custom Clearance, Port Handling and Onward dispatch to SITE and Forwarding charges,

if applicable.


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g) Freight up to SITE,

h) Unloading, Storage at SITE, site assembly, erection, pre-commissioning and

commissioning until ACCEPTANCE OF PLANT,

i) Insurance,

j) All taxes as applicable in India and outside India for execution of PLANT under

CONTRACT including Works Contract tax, if any,

k) Project Management and overheads,

I) Guarantee Test Runs and handing over of PLANT to OWNER.

m) All other costs, expenses and outgoing of the CONTRACTOR not otherwise expressly set

forth herein necessary, required or incidental to the full, complete and proper performance

and discharge of the CONTRACTOR'S obligations under and in accordance with the

CONTRACT including completion of the PLANT in all respects and overheads of the

CONTRACTOR.

4.33.10.2 OWNER shall pay to CONTRACTOR a lump-sum fixed CONTRACT PRICE, as shown

below, for the due and faithful performance of CONTRACTOR'S obligations under the

CONTRACT including proving of PERFORMANCE GUARANTEES and

ACCEPTANCE OF PLANT. CONTRACT PRICE provided for in this Article covers

entire consideration payable to CONTRACTOR for all obligations of CONTRACTOR.

The CONTRACT PRICE is fixed and firm and not subject to any escalation during the

contract period.

Foreign Currency (FC):

Indian Currency (IC):

(Break up of CONTRACT PRICE shall be as per ANNEXURE -1.1)

4.33.10.3 CONTRACT PRICE is inclusive of cost of all travel, accommodation, living cost and all

other expenses of management and personnel of CONTRACTOR, SUB-CONTRACTOR,

VENDOR and their agents for traveling to and from plant SITE and other places / countries

as may be necessary for the proper performance of CONTRACTOR'S responsibilities under

CONTRACT and shall also include all costs and expenses incurred in attending such

meetings in connection with CONTRACT as OWNER may reasonably require.

4.33.10.4 CONTRACT PRICE is inclusive of cost of all CONTRACTOR'S EQUIPMENT, materials,

services etc., required to complete WORK under CONTRACT.

4.34.0 TERMS OF PAYMENT

4.34.1 Payment against License and Know how

- 10% of the License and know how fee shall be paid as an advance to the CONTRACTOR

on presentation of following documents.


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i) CONTRACT copy duly signed by CONTRACTOR

ii) Commercial invoice

iii) Bank guarantee equal to the amount of advance

- 80% pro rata on progress ( of Basic Engineering) duly approved by the owner within 30

DAYS of submission of invoices

- 5% on mechanical completion and receipt of operating manual and Engineering

information for plant operation within 30 DAYS of submission of invoices.

- 5% on final acceptance of the plant duly commissioned and certified by the OWNER

within 45 DAYS of such certification.

4.34.2 Payment against Basic engineering

- 10% of the Basic Engineering fee shall be paid as an advance to the CONTRACTOR on

presentation of following documents.

i) CONTRACT copy duly signed by CONTRACTOR

ii) Commercial invoice

iii) Bank guarantee equal to the amount of advance

- 80% pro rata on progress duly approved by the owner within 30 DAYS of submission of

invoices

- 5% on mechanical completion and receipt of operating manual and Engineering

information for plant operation within 30 DAYS of submission of invoices.



4.34.3 Payment against Detail design & engineering

- 10% of the, design & engineering fee shall be paid as an advance to the CONTRACTOR

on presentation of following documents.

i) CONTRACT copy duly signed by CONTRACTOR ii) Commercial invoice iii) Bank guarantee equal to the amount of advance

- 80% pro rata on progress duly approved by the owner within 30 DAYS of submission of

invoices

- 5% on mechanical completion and receipt of operating manual and Engineering information for plant operation within 30 DAYS of submission of invoices.


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4.34.4 Payments against supply of indigenously procured mechanical, electrical,

instrumentation and other equipments:

- 10% of the price for supply items shall be paid as an advance to the CONTRACTOR on



- 80 % together with all duties and taxes on proof of despatch, prorata for each consignment

within 30 DAYS of submission of invoices.

- 5% on mechanical completion of PLANT within 30 DAYS of submission of invoices.

- 5% on final ACCEPTANCE OF PLANT and certified by the OWNER within 45 DAYS

of such certification.

4.34.5 Payments against supply of imported items:

- 10% of the price for supply items shall be paid as an advance to the CONTRACTOR on



- 80 % against Original shipping documents within 30 DAYS of submission of invoices.

- 5% on mechanical completion of PLANT within 30 DAYS of submission of invoices.

- 5% on final ACCEPTANCE OF PLANT and certified by the OWNER within 45 DAYS

of such certification.

4.34.6 Payments against Erection, Construction and Commissioning:

- 10 % of the price for Erection, Construction and Commissioning shall be paid as an

advance to the CONTRACTOR upon satisfactory mobilization of CONTRACTOR'S

project team at OWNER'S site and on presentation of following documents.

i) CONTRACT copy duly signed by CONTRACTOR ii) Commercial invoice iii) Bank guarantee equal to the amount of advance.

- 80% against running bills on pro-rata basis for work- completed each MONTH duly certified by OWNER within 15 DAYS of such certification.

- 5% on completion of erection work duly certified by OWNER within 15 DAYS of such

certification.


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- 5% on final acceptance of plant duly commissioned on certification by OWNER within 45

DAYS of such certification.

4.34.7 Payment of ocean freight, marine, inland freight and insurance charges

OWNER shall reimburse the CONTRACTOR the amount of ocean freight, inland freight,

Port Clearance and marine insurance and other incidentals at actual against production of

documentary evidence such as freight bill, marine insurance policy, premium receipt etc.

from time to time. OWNER shall not be liable to pay under this clause amount in - excess of

what shall be named in the CONTRACT.

4.34.7 Indian Agents' commission

OWNER shall pay to the Indian agent towards commission as specified in the CONTRACT

50% of the amount after receipt and approval of equipment at site and balance 50% on final

acceptance of plant payment shall be made in Indian rupees against signed commercial

invoice of Indian agent duly certified and , approved for payment by CONTRACTOR the

payment shall be based on prevailing exchange rate at the time of payment.

4.34.8 Payment currencies

Payments shall be made in the US Dollar (US $) / Euro / Indian Rupees and amounts in

which the bid price has been stated.

4.34.9 Performance Bond:

CONTRACTOR shall, before receiving last payments upon acceptance of PLANT furnish at

its cost to OWNER a guarantee from a first class bank for an amount of 10% of the

CONTRACT PRICE for CONTRACTOR'S due and faithful performance of all its warranty

obligations. Before receiving last payment CONTRACTOR shall also submit the final

documentation in requisite numbers and claim of OWNER towards liquidated damage , if any

are settled.

Such guarantee shall be valid until expiry of CONTRACTOR'S mechanical warranty

according to Annexure 4.1.

4.34.10 The project is to be part financed by a LENDER under a loan agreement. The LENDER may

seek certain prior approvals from the OWNER. The CONTRACTOR should assist the

OWNER and provide necessary details.


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ANNEXURE -4.1

DRAFT FOR PERFORMANCE GUARANTEE

To be issued or confirmed by any of the first class international bank of Nationalized Indian Bank or its

foreign branch and should be posted at the following address:

Gujarat Narmada Valley Fertilizers & Chemicals Ltd., PO: Narmadanagar-392 015, Dist.: Bharuch,

Gujarat, India. Phone No: +91 - 2642 -663431 Fax No : +91 - 2642 - 247108

This Guarantee made this DAY of

2013 between

(bank limited), a company incorporated in and having its branch office at .

(hereinafter called the "BANK") which expression shall unless repugnant to the context or contrary to the

meaning thereof include its successors and assigns of the one part and Gujarat Narmada Valley Fertilizers

& Chemicals Limited (GNFC), a company having its registered office at PO: Narmadanagar - 392 015,

Dist.: Bharuch, Gujarat, India, (hereinafter called the "OWNER") which expression shall include the

successors and assigns of the other part.

Whereas the OWNER has placed a CONTRACT with (hereinafter called the

"CONTRACTOR") for supply cum-erection hereinafter called the "WORK" at the

total cost of

And whereas it is one of the terms of the said CONTRACT that the CONTRACTOR shall furnish to the

OWNER from the BANK Guarantee which shall be for 10% of the value of the CONTRACT and which

shall be valid for the duration of supply of the WORK covered by the said CONTRACT and the period of

defects/ liability in respect of the said WORK

And whereas the BANK has, at the request of the CONTRACTOR, agreed to give in favour of the

OWNER, a GUARANTEE in manner hereinafter appearing, which the OWNER has agreed to accept.

Now this deed witnessed as follows:

1. In pursuance of the said CONTRACT and in consideration of the promises, the BANK hereby

guarantees to the OWNER due observance and fulfillment by the CONTRACTOR of the

terms of the said CONTRACT relating to the said WORK and of the performance warranty

which is a part of the said CONTRACT and agrees and undertakes that, if the

CONTRACTOR fails to observe and fulfill the terms of the said CONTRACT and/ or the

performance warranty, then the BANK shall immediately pay to the OWNER, on demand,

such sum or sums of money to the extent of being 10% of the value of the said CONTRACT

on account of losses and damages suffered by the OWNER as may be claimed by the

OWNER by reason of such non-observance and nonfulfillment by the CONTRACTOR as

aforesaid and shall also indemnify the OWNER against all losses and damages which may be

suffered by the OWNER as aforesaid and against all costs, charges, expenses which may be

incurred by the OWNER in connection herewith. The BANK shall pay the said amount

without demur or protest or without recourse to the CONTRACTOR. Any such demand

placed on the bank shall be conclusive with respect to the amount due and payable by the


Page (82)

BANK under this Guarantee.

2. This Guarantee is a continuing Guarantee and not revocable except with the previous written

consent of the OWNER, and save as aforesaid, it will continue in force until the

CONTRACTOR has maintained the schedule of delivery of the said WORK under the said

CONTRACT and observed and fulfilled the said performance warranty and all other terms

and conditions of the said CONTRACT.

3. The OWNER may, without affecting BANK'S liabilities and obligations hereunder, grant time

or other indulgence to or compound with the CONTRACTOR or enter into any agreement or

agree to forbear to enforce any of the terms and conditions of the said CONTRACT against

the CONTRACTOR or agree to vary any of the terms and conditions of the said

CONTRACT.

4. This Guarantee shall not be affected by any change in the constitution of the OWNER by

absorption with any other body or corporation or otherwise and this Guarantee will be

available to or enforceable by such body or corporation.

5. All compositions and payments received by the OWNER from or on behalf of the

CONTRACTOR shall be regarded as payments in gross, and in the event of the

CONTRACTOR being wound-up, the OWNER will be entitled to prove against the

properties of the CONTRACTOR in respect of the whole of the CONTRACTOR'S

indebtedness to the OWNER, without any right on the part of the BANK to stand in the

OWNER'S place in respect of or to claim the benefits of such composition and payment or

any security held by the OWNER until the OWNER shall have received the full amount of

the claims against the CONTRACTOR.

6. In order to give effect to this Guarantee the OWNER will be entitled to act as if the BANK

were the principal debtor and the BANK hereby waives all and any of its rights of suretyship.

7. This Guarantee shall continue to be in force notwithstanding the discharge of the

CONTRACTOR by operation of law and shall cease only on payment of the full amount by

the BANK to the OWNER of the amount hereby secured and on the claim of the OWNER

against the CONTRACTOR in respect of the said CONTRACT being satisfied.

8 This Guarantee shall be in addition to and not in substitution for any other Guarantee or

security for the CONTRACTOR given or to be given to the OWNER in respect of the said

CONTRACT by the BANK (whether alone or jointly with others)

9 Subject to clause 2 hereof this Guarantee shall remain in force for 18 MONTHS after

commissioning of the WORK or maximum 48 months after delivery whichever is earlier.

10. Unless demand or claim under this Guarantee is made within six MONTHS from the date of

expiry of this Guarantee, all the rights of the OWNER hereunder shall be forfeited and the

BANK shall be relieved and discharged of all liabilities hereunder.

11. Any notice by way of request, demand or otherwise hereunder may be sent by post to the

BANK, addressed as aforesaid, and if sent by post, it shall be deemed to have been given at

the time when it would be delivered in due course of post, and in proving such notice, when

given by post, it shall be sufficient to prove that the envelope containing the notice was

posted and a certificate, signed by an officer of the OWNER, to the effect that the envelope


Page (83)

was so posted, shall be conclusive.

12. These present shall be governed by and construed in accordance with Indian Law

13 The BANK hereby declares that it has the power to issue this Guarantee and the undersigned

has full power to-do so

In witness whereof the BANK has executed these present the DAY and year first above written

Signed and delivered for and on behalf of the above, named.

Date this

DAY of


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SECTION-5

SPECIAL CONDITIONS OF CONTRACT


Page (85)

5.1.0 DEFINITIONS

Where used in the CONTRACTS unless inconsistent with or otherwise indicated by the

context, the following terms shall have the meaning as defined against them hereunder: 5.1.1 ACCEPTANCE DATE means the date of the Certificate of acceptance of PLANT by the

OWNER. 5.1.2 BATTERY LIMIT means boundaries enclosing the area within which PLANT and associated

facilities as set forth in CONTRACT shall be located. 5.1.3 CONTRACT means the agreement entered into for the PLANT between the OWNER and the

CONTRACTOR signed by the parties including all attachments, subsequent amendments and appendices thereto mutually agreed between OWNER and CONTRACTOR and all documents incorporated by reference therein.

5.1.4 CONTRACTOR means the successful Bidder, with whom OWNER enters into CONTRACT

for supplying Goods & Services for PLANT as specified, including its representatives, successors and permitted assignees.

5.1.5 PROJECT means all activities for setting up of PLANT and other associated facilities to be

erected at OWNER'S SITE. 5.1.6 SITE means the Project Site located within OWNER's existing TDI-II Complex at Dahej,

Dist-Bharuch Gujarat, India, where WORK is to be done for the PROJECT. 5.1.7 PLANT means PAC plant of 50,000 MTPA (18% Al2O3) capacity with manufacturing

facilities complete in all respects for the production of 50,000 MTPA PAC (18% Al2O3) on continuous basis from 32% HCl and can operate for more than 8000 hours in a year and having other associated facilities and to be erected at OWNER'S SITE at Dahej, Dist-Bharuch, Gujarat, India.

5.1.8 OFFSITE means the facilities to be provided / erected at OWNER'S site outside BATTERY

LIMITS of PLANT. 5.19 OWNER means Gujarat Narmada Valley Fertilizers & Chemicals Ltd., having its registered

office at PO: Narmadanagar - 392 015, Dist.: Bharuch, Gujarat, India; a company registered in India, which expression shall include its successors and permitted assigns.

5.1.10 CRITICAL EQUIPMENT means such items or EQUIPMENT which are of critical nature

either functionally or due to delivery constraint .5.1.11 DELETED. 5.1.12 EFFECTIVE DATE means the EFFECTIVE DATE OF CONTRACT as defined at 5.2. 5.1.13 DELETED. 5.1.14 FINANCING INSTITUTION / LENDER shall mean collectively, all of the persons

providing financing under a loan agreement and any trustee or agent acting on any such person's behalf.

5.1.15 DELETED.


Page (86)

5.1.16 MECHANICAL COMPLETION means the date on which CONTRACTOR / OWNER

certify that the PLANT is completed in all respect structurally and put in a tight clean condition after thorough inspection, also for pressures, vacuum, no load test and other tests have been performed, control circuits are installed as specified and the PLANT is ready for COMMISSIONING and can continue to receive the feed(s) leading to PAC production, the equipment capable of producing to rated capacities are installed in accordance with drawings, specifications and in accordance with all applicable codes, and laws.

5.1.17 DELETED. 5.1.18 NON-CRITICAL EQUIPMENT means such items of EQUIPMENT which are not

CRITICAL EQUIPMENT. 5.1.19 PURCHASE ORDER means the purchase order and all attached exhibits and documents

referred to therein and all terms and conditions thereof together with any subsequent modifications thereof.

5.1.20 PRINCIPAL ROTATING MACHINERY means Blower, Compressor, Pumps forming part

of EQUIPMENT. 5.1.21 VENDOR means (as the case may be) any or all persons, firms or companies selected by

CONTRACTOR with approval in writing by OWNER from whom EQUIPMENT / MATERIALS are procured by CONTRACTOR.

5.1.22 WORK means all duties, services, responsibilities and obligations to be discharged by

CONTRACTOR pursuant to CONTRACT. 5.1.23 WORKS/OPERATING COST means the costs of raw materials and utilities for the plant

calculated as specified in clause 5.8.0.

5.2.0 EFFECTIVE DATE 5.2.1 THE CONTRACT between CONTRACTOR and OWNER shall become effective on: i) Signing of the CONTRACT between OWNER and CONTRACTOR ii) First down payment to CONTRACTOR 5.2.2 OWNER and CONTRACTOR shall promptly notify each other by e-mail or Fax upon getting

the required clearances. 5.3.0 CONTRACTOR'S GENERAL RESPONSIBILITY 5.3.1 CONTRACTOR shall provide License(s) to OWNER for PLANT process technologies for

fulfilling its obligations under CONTRACT. 5.3.2 CONTRACTOR shall provide services of sufficient number of engineers, designers,

draftsmen, buyers, inspectors, expediters and other persons required for the performance of WORK pursuant to the CONTRACT.

5.3.3 CONTRACTOR shall in particular provide and be responsible for the tasks described

specifically in clause 5.4.0. 5.3.4 In the event that there is any item of EQUIPMENT or WORK of the type provided for in


Page (87)

CONTRACT, which is not specifically mentioned in the specifications or drawings set out in FINAL PROPOSAL, but which is necessary (even though not mentioned in CONTRACT) for normal, safe, and continuous operation of PLANT, CONTRACTOR shall include such items of EQUIPMENT in the design and perform such items of WORK also free of cost to OWNER as if the same had been originally included in FINAL PROPOSAL.

5.3.5 CONTRACTOR may make use of the services of SUB¬CONTRACTOR in accordance with

CONTRACT. The scope of work of the proposed SUB-CONTRACTORS shall be approved by the OWNER. The obligations and responsibilities of the CONTRACTOR listed in or referred to in this clause 5.3.0 and indicated in detail in clause 5.4.0 is without prejudice to the generality of the foregoing The enumeration in clause 5.4.0 and CONTRACT shall not in any manner limit the general scope of obligations and responsibilities of designing, engineering, procurement, construction, commissioning and proving the performance guarantees of PLANT within the scope of CONTRACT.

5.3.6 CONTRACTOR shall undertake to design the EQUIPMENT / reactors on the basis of

commercially proven / reputed VENDORS. 5.3.7 BIDDER will be responsible for selection of respective partner and would submit a joint

proposal in a manner and in a form specified in this ITB and will jointly participate for discussions. BIDDER may select/tie-up with experienced engineering and reputed CONTRACTOR for the work detailed engineering, procurement, construction etc. to complete the scope of work on LSTK basis.

BIDDER will take prior approval of OWNER before selection/tie-up with such engineering CONTRACTOR

5.3.8 Complete responsibility of OSBL(Outside Battery Limit) piping including Engineering, procurement, supply and construction will be in the scope of CONTRACTOR.

5.4.0 CONTRACTOR'S SCOPE OF WORK

5.4.1 Outline of Work

CONTRACTOR shall provide and be responsible for the tasks specified in this clause under

the following headlines: Design and Engineering.

Review and Analysis

Codes and Standards

Drawings and Documents.

OWNER'S Review

Procurement of EQUIPMENT & Materials.

Network Schedule

Spares and Special Maintenance Tools Construction Tools

Transportation and Storing of EQUIPMENT Construction

Safety and Plant Security

Pre-Commissioning

Mechanical Completion

Commissioning

Performance Guarantee


Page (88)

Post-Commissioning Services (optional)

Practical Experience for OWNER'S Personnel (optional)

Laws and Regulations

Progress Monitoring and Reporting

Technical Information

WORK of SUB-CON TRACTORS

Co-ordination

Plant availability Guarantees (optional)

HAZOP Analysis

Health, Safety and Environmental aspects

The CONTRACTOR shall be responsible for obtaining necessary approvals which are to be

issued in the CONTRACTOR'S name from the various statutory authorities.

The CONTRACTOR shall provide full technical assistance including follow-up to OWNER

for obtaining the necessary approvals to be issued in the name of OWNER from the various

statutory authorities.

5.4.2 Design and Engineering

The design and engineering shall be so performed that PLANT shall be capable of meeting the

guarantees with respect to quality and quantity of products, consumption of raw materials and

utilities (as proven by WORKS / OPERATING COST), and Pollution Level as guaranteed

under CONTRACT and shall be reliable and safe and operable in accordance with sound

engineering practice. CONTRACTOR shall ensure that the design shall have the capacity

higher by minimum 10% of the Guaranteed capacity. Critical equipment like Compressor,

Reactor, Spray Drier, Absorption Tower, exchangers etc. should be designed to have at least

15% higher capacity of the PLANT in accordance with CONTRACTOR'S experience and

expertise for obtaining a full through put under varying conditions within the limits specified

in CONTRACT of PAC PLANT.

CONTRACTOR shall review the basic design conditions, including soil data, and other

conditions furnished by OWNER, If CONTRACTOR observes any inconsistency or

insufficiency in these data, CONTRACTOR shall bring to the notice of OWNER the same.

5.4.3 Review and Analysis

CONTRACTOR shall allow OWNER'S representative to review the design and engineering

and CONTRACTOR shall incorporate in its design and engineering such additions and

changes suggested by OWNER'S representative as long as these do not conflict with the

responsibility of CONTRACTOR in fulfilling its guarantees under CONTRACT.

CONTRACTOR shall not use any technical data, drawing, or document given by OWNER

except for purpose of CONTRACT.

5.4.4 Codes and Standards

The engineering shall be performed according to acceptable international standards, as


Page (89)

specified in the TECHNICAL SPECIFICATION AND FINAL PROPOSAL, meeting safety

and other requirements of various national/international Codes and Regulations being in force

as on EFFECTIVE DATE. The design of PAC PLANT shall be based upon the criteria

enumerated in CONTRACT.

A typical list of Indian Acts, Rules and Regulations applicable is also appended in Annexure-

5.2. However, it shall be BIDDER'S responsibility to follow all Indian rules and Regulations

as applicable to the PLANT.

5.4.5 Drawings and Documents CONTRACTOR shall prepare or secure and furnish to OWNER all data, specifications,

drawings, plans and other documents required for WORK including but not limited to the following:

a) Process and engineering flow diagram, line conditions list, heat and material balance

including steam, power and utilities.

b) Piping and instrumentation diagrams for process facilities and utility systems

c) Drawings of EQUIPMENT (inclusive of shop fabrication drawings)

d) Specifications and data-sheets of EQUIPMENT.

e) Characteristic curves of fans, blowers, pumps, and compressors etc. as normally made

available by VENDOR.

f) Instrumentation and electrical drawings including motor list and civil foundation

drawings

g) Chemicals detailed specifications

h) General arrangement drawings (including plans and elevations, and isometrics where

required)

i) Piping design along with piping specifications, piping isometrics

and pipe support drawings.

j) Drawings, procedures, and special tools & tackles and devices for the erection of

EQUIPMENT.

k) PURCHASE ORDER for all EQUIPMENT.

l) Bill of material used for award of CONTRACTS for civil & structural works,

mechanical, electrical and instrumentation erection and other works.

m) Copies of certified drawings, including one reproducible for items of EQUIPMENT

purchased as standard items from VENDOR and copies of pertinent bulletins and

instruction manuals as spelt out in co-ordination procedure.

n) Network Schedule for all activities of WORK indicating milestones including

VENDOR'S and Sub-Contractor's activities.

o) 6 (Six) copies each of the operating and maintenance manuals for PAC PLANT. These

manuals shall be furnished at least six MONTHS prior to MECHANICAL


Page (90)

COMPLETION.

p) DELETED

q) Copies of the list of recommended spare parts for EQUIPMENT.

r) During the progress of WORK, CONTRACTOR shall furnish to OWNER such copies of

drawings, specifications and manuals as specified in the Co-ordination Procedure.

s) Upon completion of WORK, CONTRACTOR shall furnish one complete reproducible

sets of CONTRACTOR'S including Sub-contractor final revised drawings for PAC

PLANT as referred to above under paragraphs (a),(b),(c),(d),(e),(f),(h),(i),and (m). The

distribution of documents referred to above shall be as set out in the Coordination

Procedure.

t) All final drawings and documents should be furnished as computer files in CD also.

5.4.6 Owner's Review

CONTRACTOR shall associate OWNER'S representatives with WORK as carried out by

CONTRACTOR'S and Sub-contractor's personnel. OWNER'S representatives shall review

for acceptance, or sign written approval of, all documents specified in the Coordination

Procedure. The review and approval shall follow the Review and Approval Procedures

defined in the Co-ordination procedure.

5.4.7 Procurement Services.

5.4.7.1 CONTRACTOR shall carry out procurement of EQUIPMENT required for PAC PLANT.

EQUIPMENT procured shall be according to CONTRACTOR'S specifications, of the best acceptable quality, proven record of performance and with suitable delivery time to meet MECHANICAL COMPLETION as guaranteed by the CONTRACTOR.

5.4.7.2 CONTRACTOR shall furnish a unpriced copy of PURCHASE ORDERS for all items of

selected EQUIPMENT together with spares and special maintenance tools covering accurately all terms and conditions such as specifications requirements for quality, inspection, and test, warranties and guarantees, erection and commissioning assistance by VENDOR, delivery schedule, packing, transportation and insurance, and documentation. OWNER shall have right to approve the final selection of the VENDOR under the terms and conditions of PURCHASE ORDERS.

5.4.7.3 CONTRACTOR shall arrange & furnish/provide to OWNER:

a) Lubrication schedule from VENDOR.

b) Mechanical specifications and equipment data sheets for approval by OWNER before

manufacture is started.

c) Shop fabrication drawings as made available by VENDOR

d) Characteristic curves for pumps and compressors, etc as made available by VENDOR.

e) Certified drawings including civil scope drawing and loading data, pertinent bulletin,

installation, operation and maintenance manuals and test certificates as received from


Page (91)

VENDOR

f) Supply of final revised VENDOR'S drawings including one reproducible upon

completion of WORK

5.4.7.4 CONTRACTOR shall arrange services of VENDOR'S specialist for installation and

commissioning of equipment whenever necessary. 5.4.7.5 CONTRACTOR shall be responsible for the accuracy and completeness of PURCHASE

ORDERS. Any approval by OWNER'S representative shall not relieve CONTRACTOR of such responsibility.

5.4.7.6 CONTRACTOR shall establish an inspection and expediting system and use its services for

obtaining the EQUIPMENT which conforms to the required technical and quality specifications and delivery according to PURCHASE ORDERS. Copies of expediting and inspection reports, of CONTRACTOR regularly shall be sent to OWNER. For Critical items, CONTRACTOR shall provide services for arranging third party inspection and quality certification to be carried out at CONTRACTOR'S cost, CONTRACTOR to indicate the list of Critical items. The CONTRACTOR shall detail out the actions to be effected to achieve the targeted dates and the same shall be discussed and reviewed with OWNER, periodically using the up-dated network Based on these reviews, project schedule shall be periodically revised and up-dated to reflect the latest information.

5.4.8 Network Schedule 5.4.8.1 OWNER would be using a Computerized Time and Cost Monitoring System and

CONTRACTOR shall provide the necessary input data for the same as per system requirement. Project net work shall be updated every MONTH to reflect current status.

CONTRACTOR shall develop master schedule constituting the following:

i) The process engineering and basic engineering of the Project shall be completed within

MONTHS from the EFFECTIVE DATE OF CONTRACT (EDoC).

ii) The detailed engineering of the project shall be completed within

MONTHS from EFFECTIVE DATE (EDoC).

iii) Necessary load data shall be available so that foundation work could be started by

CONTRACTOR within MONTHS from EFFECTIVE DATE (EDoC).

iv) Sufficient foundation drawings shall be available so that Civil Construction by

CONTRACTOR can be started within MONTHS from EFFECTIVE DATE

(EDoC).

v) Delivery of all equipment and 95% of the bulk materials for the project shall be

available within MONTHS from EFFECTIVE DATE (EDoC).


Page (92)

5 4.9 Spares and Special Maintenance Tools.

CONTRACTOR shall furnish the information in consultation with VENDOR and based

on experience from other plants, a list of spares and special maintenance tools and

fixtures for EQUIPMENT, sufficient for commissioning and for 2 years of normal

operation and maintenance of 50,000 MTPA PAC PLANT. The spares recommended

shall be optimum, so as not to fall short during commissioning and two years' operation

thereafter, CONTRACTOR shall obtain for these spares the appropriate guarantees and

warranties. CONTRACTOR shall also ensure that spares and special maintenance tools

and fixtures are procured along with the related items of EQUIPMENT and form part of

the PURCHASE ORDERS for the related items of EQUIPMENT.

5.4.10 Construction Tools

CONTRACTOR shall procure and provide special construction aids, tools, tackles and

fixture, required for construction and during normal operation & maintenance of the

plants.

5.4.11 Transportation and storing of Equipment

CONTRACTOR shall be responsible for proper packing, transportation from

manufacturer's workshop to port or railway station (whether by road, rail, ship or

aircraft), handling and clearances at port- or railway station including loading and

unloading, customs clearance, carriage to site, unloading at site warehousing, coding and

tagging,, storage including proper preservation at site of EQUIPMENT. Any special

clearance, lifting, handling, loading/unloading, and transport arrangements for over

dimensional consignments shall also be done by CONTRACTOR. CONTRACTOR

shall ensure timely delivery of EQUIPMENT. CONTRACTOR shall endeavor to have

the consignments in the upper part of the hold to enable early discharge at the Port of

dismbarkment. The above arrangement shall be in accordance with the guidelines set

forth in the Co-ordination Procedure. CONTRACTOR shall be responsible for

inspection of equipment on receipt at SITE and for maintenance and management of

stores and warehousing of EQUIPMENT at SITE including all activities connected with

the issue of EQUIPMENT, accounting and final reconciliation and handing over of

STORES to OWNER.


Page (93)

5.4.12 Construction

CONTRACTOR shall be responsible for all ISBL Civil and structural works, buildings,

internal roads, storm water channels, pipe racks, all insulating & painting works,

Erection of complete PLANT, site fabrication, piping, civil work, buildings & structural

work, instrumentation installation, electrical installation, and other miscellaneous

construction jobs of PAC PLANT leading to MECHANICAL COMPLETION.

CONTRACTOR shall-organize these activities, in appropriate sequence and use proper

methods giving due regard to the requirements of safety, quality, sound engineering

practice, compliance with relevant Codes and Regulations, and for achieving

MECHANICAL COMPLETION within the period guaranteed.

5.4.13 Safety and Plant security

CONTRACTOR shall observe and also use its best efforts to ensure that all parts of

WORK carried out at site is being done in a safe and satisfactory manner conforming to

the applicable Safety Rules and Regulations. Further, CONTRACTOR shall observe and

further make provisions in contracts that employees working in PAC PLANT observe all

the Safety Rules as required under the Factories Act and Regulations and other Local

Laws and CONTRACTORS to provide safety apparel and equipment to their

employees. OWNER shall have the right to object to any unsafe practice followed by

CONTRACTOR'S, Sub-contractor's employees or any CONTRACTOR'S personnel and

direct them to carry out the job in . a manner considered safe by OWNER.

CONTRACTOR shall further abide by all the Security Regulations imposed by

OWNER.

CONTRACTOR shall observe all safety rules so that no harm is done to OWNER'S

employees or property. If on account of CONTRACTOR, OWNER'S property or

personnel are likely to suffer any damage, in such cases any directions issued by

OWNER shall be carried out by CONTRACTOR..

5 4.14 Pre-Commissioning Services

CONTRACTOR shall render and be responsible for supervision and direction of pre-

commissioning activities leading to MECHANICAL COMPLETION. These activities

will include relevant checking, adjustment, testing, calibration, running in and trial runs

of individual items of EQUIPMENT, and other similar jobs.


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OWNER shall provide experienced / trained and suitable operating and maintenance

personnel who will perform their tasks under the supervision and direction of

CONTRACTOR.

CONTRACTOR shall provide experienced personnel as required for carrying out the

pre-commissioning activities along with OWNER'S personnel. CONTRACTOR shall

arrange for VENDOR'S specialists where required. Suitable provision for such services

shall be made by CONTRACTOR at the time of placing the PURCHASE ORDER.

5.4.15 Mechanical Completion

CONTRACTOR shall be responsible for completing the design, engineering,

procurement, inspection and expediting, arranging for transportation of EQUIPMENT,

erection and construction of the Plant and pre-commissioning for making PLANT ready

for acceptance of feedstock at MECHANICAL COMPLETION. CONTRACTOR shall

guarantee that MECHANICAL COMPLETION shall occur so that commercial

production can start within 18 MONTHs from EFFECTIVE DATE OF CONTRACT

(EDoC).

5.4.16 Commissioning Services.

CONTRACTOR shall and be responsible for commissioning activities after pre-

commissioning activities have been completed giving due regard to safety of

EQUIPMENT according to sound international practice. OWNER shall provide

experienced trained operating and maintenance personnel who shall work under the

supervision of CONTRACTOR. The commissioning activities shall include the

following:

a) Introduction of raw materials (feedstock), utilities, lining-up of various sections of

PLANT leading to production of PAC.

b) Stabilizing PLANT and stepping up production to full rated capacity.

c) Demonstrating a sustained load test for 10 continuous DAYS (or lesser period if

agreed to by OWNER) during which an average production rate of not less than

95% of the guaranteed daily rated capacity is achieved.

d) Conducting a guarantee test to prove the performance guarantees for production

capacity, product quality, consumption of raw materials and utilities, and pollution

level. CONTRACTOR shall provide supervisory engineers as required to

supervise and direct the commissioning of PLANT. CONTRACTOR shall be


Page (95)

responsible for supervision and direction of PLANT operation until the

performance guarantees have been fulfilled and\or PLANT has been finally

accepted and taken over by OWNER. During the sustained load test and the

guarantee test, the range of operating conditions shall be within the limits of the

design conditions and shall meet the requirements of safety and compliance with

relevant Codes and Regulations.

5.4.17 Performance Guarantees

CONTRACTOR shall, when PLANT is stabilized at full rated production, arrange arid

supervise the following tests to prove the performance guarantees specified in clause

5.8.0.

a) Sustained Load Test:

Operate for 10 continuous DAYS or lesser period if agreed to by OWNER to

demonstrate its capability to achieve on sustained basis an average production of

not less than 95% of the guaranteed daily rated capacity.

b) Guarantee Test:

Demonstrate over a period of 3 consecutive DAYS the capability of PLANT to

achieve the guarantees for production capacity, product quality, consumption of

raw materials and utilities, and pollution levels.

The sustained load test shall be performed by CONTRACTOR in the shortest possible

reasonable period, but not exceeding 90 DAYs from MECHANICAL COMPLETION.

On successful completion of the guarantee test, OWNER shall finally accept PLANT.

5.4.18 Post-Commissioning Services (Optional)

CONTRACTOR shall arrange to provide the services of one process and one

mechanical engineer after PLANT ACCEPTANCE for a maximum period of 12

MONTHS if so required by OWNER under the terms and conditions to be mutually

agreed.

5.4.19 Practical experience for OWNER'S Personnel (Optional)

CONTRACTOR shall make arrangements, if required, for providing practical

experience for OWNER'S operating personnel for a period not exceeding 25 man

MONTHs in an PLANT of CONTRACTOR'S design and of similar capacity and design

features as PLANT and for OWNER'S maintenance personnel in the same plant or in


Page (96)

VENDOR'S workshops for a period, not exceeding 25 man-months of OWNER'S

personnel. CONTRACTOR shall provide assistance to OWNER'S personnel for proper

co-ordination and management of the practical experience. OWNER shall bear the

expenses for travel and stay of its personnel. Detailed program for practical experience

shall be mutually agreed between OWNER and CONTRACTOR.

5 4.20 Laws and Regulations

CONTRACTOR shall abide, while fulfilling its obligations, by all applicable codes,

laws, and regulations from time to time in force in the State of Gujarat and in India.

FINAL PROPOSAL would be based on the codes, laws and regulations applicable on

effective date. In the event of change in any codes, laws or regulation applicable to

PLANT after submission of FINAL PROPOSAL which alters the scope of

CONTRACTOR'S obligations under CONTRACT, CONTRACTOR shall agree to

make the necessary change in scope of WORK, at mutually agreed terms and conditions.

5.4.21 Progress monitoring and reporting

CONTRACTOR shall develop a suitable system for monitoring and reporting progress

on the various activities up to MECHANICAL COMPLETION and the subsequent

activities of commissioning and conducting the guarantee test. CONTRACTOR will

give detailed Network Schedule covering the activities and milestones starting from

EFFECTIVE DATE until ACCEPTANCE DATE These Master Schedules shall include

the activities of CONTRACTOR, Subcontractor, Suppliers/Manufacturers, and

construction contractors. CONTRACTOR shall monitor progress continuously and

submit to OWNER monthly progress reports giving the status of the activities,

indicating those delayed and action being taken, or required to be taken, to bring back

those activities on schedule. These reports will also include progress at VENDOR'S

workshops and will be supplemented with photographs, wherever necessary. The

Network Schedule shall be updated once in a MONTH. CONTRACTOR shall also

furnish information to OWNER as may be required by any other Governmental

Authority or any other agency such as FINANCING INSTITUTION etc. OWNER

would be using for the PROJECT a Computerized Time and Cost monitoring schedule.

CONTRACTOR will provide necessary inputs for the same.


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5 4.22 Technical Information

CONTRACTOR shall furnish to OWNER, CONTRACTOR'S Technical Information

and know-how as may be necessary for the operation of PLANT. CONTRACTOR will

grant to OWNER an irrevocable right to use all technical information and know-how

and shall further advise OWNER for a period of five (5) years from PLANT

ACCEPTANCE of any improvements in process, know-how, engineering, operation

methods, and other conditions which will result in more efficient operation of PLANT

that are developed by CONTRACTOR or process licensee or have come to the

knowledge of CONTRACTOR.

5. 4.23 Work of SUB-CONTRACTOR(S) and CONTRACTOR

CONTRACTOR shall remain responsible for proper execution of such part of WORK as

are carried out by SUB-CONTRACTOR(S) and any failure of Sub-contractor(s) or

CONTRACTOR(S) shall not relieve CONTRACTOR of its obligations under

CONTRACT. Furthermore, in the event of any default by Sub-contractor(s),

CONTRACTOR may either take over Sub-contractor's part of WORK on mutually

agreed terms or take remedial action as may be necessary in order to achieve completion

of PLANT and any other activities leading to acceptance of PLANT by OWNER.

5.4.24 CONTRACTOR shall render all necessary assistance to OWNER required for overall co-

ordination of all activities connected with PROJECT. For this purpose, CONTRACTOR and

OWNER shall agree on a meeting as soon as practicable after EFFECTIVE DATE with Sub-

contractor(s) and such other parties as are necessary to settle the following:

a) Review the basic design conditions set forth in FINAL PROPOSAL and, where

appropriate, review possibilities of standardization.

b) Assess the priorities and key dates required to be included in CONTRACTOR'S

schedules.

c) Make an assessment of all items requiring co-ordination.

d) Fix up a date and agenda of any subsequent meeting as may be required in association

with OWNER

e) Discuss with OWNER and furnish all technical information about various

effluents/emission and discharge points from different sources indicating the quality and

quantity of gaseous and liquid emission of pollutants from PLANT. CONTRACTOR

shall also supply OWNER any additional information required on the above matter

during the performance of process design and basic engineering design.

In the event OWNER pursuant to its responsibilities of overall co-ordination requests


Page (98)

CONTRACTOR to make any alteration to the program, scope or responsibility under

CONTRACT, CONTRACTOR shall do the same.

5. 4.25 Plant availability Guarantee (optional)

CONTRACTOR shall arrange to provide, if requested by OWNER, such service with a

view of guaranteeing at 95% of the designed, annual rated capacity during the first

twelve MONTHs' period after PLANT ACCEPTANCE and/or 100% of the designed

annual rated capacity during the next twelve MONTHs period, i.e. the second year after

PLANT ACCEPTANCE under the terms and conditions to be mutually agreed.

5.4.26 Certain category of equipment/piping fall under the jurisdiction of Indian Boiler

Regulations (IBR), irrespective of the fact whether these are proprietary in nature or not,

certification from an internationally recognized agency such as Lloyds is considered

necessary to enable local IBR authorities to allow their installation and operation. In such

cases, inspection and certification from such authorities will also have to be arranged by

CONTRACTOR. CONTRACTOR shall also submit, as may be required by IBR

authorities, necessary design calculations from respective fabricators and/or manufacturers

of the EQUIPMENT.

5.5.0 OWNER'S OBLIGATIONS

5.5.1 General

OWNER shall be responsible for fulfilling all obligations as specified under the following

head-lines:

• Basic Design Conditions

• Overall Co-ordination by OWNER or through Project Management

Consultant (PMC)

• Review and approval of WORK by OWNER or through PMC

• Local Government clearances

• Facilities for CONTRACTOR'S Personnel

• Operating and Maintenance Personnel

• Feedstock and utilities

• Site Facilities

• Payment against CONTRACTOR'S Invoices

• Approvals by FINANCED INSTITUTIONS

• Assigning of OWNER'S personnel to CONTRACTOR.


Page (99)

5.5.2 Basic Design Conditions

OWNER shall furnish information concerning the basic design conditions to

CONTRACTOR as soon as practicable, but in any event not later than as per the

requirements of CONTRACTOR'S engineering schedule established and made available

to OWNER during the early stages of WORK. CONTRACTOR shall rely upon the

correctness of the information given by OWNER subject to its satisfying the consistency

and adequacy of such information

5.5.3 Overall Co-Ordination

The objective of overall co-ordination is to organize orderly execution of PROJECT, bring

about requisite integration amongst the various project activities of executing agencies, to

achieve the technical quality, and cost objective of PROJECT and to avoid interference

between the various activities of the parties in order to achieve the earliest possible

completion of PROJECT. The aim will be to integrate, have compatibility between plants

and uniform standardization of design, engineering layout.

5.5.4 Review and approval of Work

According to clause 5.4.3 CONTRACTOR shall associate OWNER'S representatives with

WORK as carried out by CONTRACTOR'S personnel. For this purpose, OWNER shall

associate with WORK at all stages. Specifically, OWNER shall in accordance with

Review and Approval Procedures undertake the following tasks-

a) Approval of drawings and other documents connected with basic and

detailed engineering design.

b) Approval of specifications for EQUIPMENT, lists of spare parts and special

maintenance tools, and lists of special construction aids, tools, tackles, and

fixtures.

c) Participation in inspection, expediting and testing of EQUIPMENT at

VENDOR'S works and at SITE, wherever considered necessary by OWNER.

5.5.5 Local Government clearances

CONTRACTOR shall provide necessary services and assistance in obtaining Government

clearances. However, OWNER shall be responsible for getting the necessary Local

Government approvals as per schedule.


Page (100)

5.5.6 Facilities for CONTRACTOR'S Personnel

OWNER shall assist CONTRACTOR in obtaining Visas and other Permits from the

appropriate authorities for CONTRACTOR'S and , VENDOR'S expatriate personnel to

enter and stay in as necessary for performance of WORK. OWNER shall also provide

facilities to CONTRACTOR'S and CONTRACTOR'S expatriate personnel in accordance

with the provisions of the CONTRACT.

5.5.7 Operating and Maintenance Personnel

OWNER shall provide experienced operating and maintenance personnel according to its

organization, specifications, and standards during the pre-commissioning and

commissioning activities, who will work under the direction and control of

CONTRACTOR. OWNER shall associate its personnel with the construction and erection

of PLANT to familiarize the personnel with WORK, ascertain quality, and generally to

prepare for proper operation and maintenance of PLANT.

5.5.8 Feedstock and Utilities

OWNER shall make available the feedstock and utilities , as agreed in technical annexure,

subject to limits specified in the CONTRACT and take over all products and effluents at

BATTERY LIMITS as specified in CONTRACT.

5.5.9 Site facilities

OWNER shall provide the following SITE facilities:

a) Organization and personnel for general co-ordination of SITE facilities

b) General safety and security services.

c) Office accommodation, office equipment, and communication facilities

according to OWNER'S standards.

d) Construction power and water.

5.5.10 Payment against CONTRACTOR'S Invoices

OWNER shall make payments to CONTRACTOR under the terms and conditions

specified in CONTRACT. The payments to CONTRACTOR shall be based on invoices


Page (101)

submitted by. CONTRACTOR, which shall be reviewed and certified by OWNER for

satisfactory completion and achievement of progress according to the Master Schedule and

returned promptly to CONTRACTOR. OWNER shall have the right to adjust the invoice

amount for payment before returning the same to CONTRACTOR, in which case

OWNER shall also indicate in writing' the reasons for the adjustment within 10 (ten)

DAYs from receipt of the invoice. In case OWNER fails to give written reasons to

CONTRACTOR for the adjustment within the said period of ten DAYS or if

CONTRACTOR disputes the adjustment and notifies OWNER to that effect in writing,

stating CONTRACTOR'S reasons for challenging the adjustment made by OWNER, and

OWNER fails to answer CONTRACTOR'S request within 10 (ten) DAYS from the date

of receipt of such notice, the amount of the adjustment in dispute shall become due for

payment, and shall be included in the next subsequent monthly invoice submitted by

CONTRACTOR to OWNER.

5.5.11 Approvals by Financing Institution

OWNER shall obtain approvals from FINANCING INSTITUTIONS, if any, where

required, and CONTRACTOR shall provide necessary information, documentation, and

assistance for obtaining such approvals.

5.5.12 Assigning OWNER'S personnel to CONTRACTOR

OWNER shall provide the required man-power to CONTRACTOR pursuant to provisions

of the CONTRACT.

5.6.0 CHANGE IN WORK

5.6.1 OWNER shall have the right to request in writing changes in WORK within the scope of

CONTRACT. When the request for a change by OWNER has been agreed and complied

with by CONTRACTOR, then CONTRACTOR'S obligations under CONTRACT shall

remain unaffected unless otherwise agreed.

5 6.2 For each request for a change in WORK, CONTRACTOR shall promptly inform OWNER

in writing whether this request will fall within the provision of the CONTRACT. If this

request does not fall under the provision of the CONTRACT and CONTRACTOR has to

incur additional expenses, then CONTRACTOR shall promptly submit a cost estimates,

and terms of payment for making the requested change together with the details of any

variation required to be made to any of CONTRACTOR'S or OWNER'S obligations


Page (102)

and/or guarantees.

5.6.3 If in CONTRACTOR'S opinion fulfillment of any of its obligations under CONTRACT

would be jeopardized by a change requested by OWNER, then CONTRACTOR shall

explain in writing to OWNER the reasons for not accepting these changes within 30

(thirty) DAYS of receipt of OWNER'S written request.

5.6.4 OWNER and CONTRACTOR shall agree upon the basis and terms of the change in

WORK in writing.

5.6.5 It is understood that no change shall become effective and no change will alter the scope

of WORK until all of the matters referred to have been mutually agreed upon in writing by

OWNER and CONTRACTOR.

5.6.6 It is agreed by both Parties that the following changes shall not be considered a change in

the meaning of this clause 5.6.0.

a) Changes requested by OWNER and accepted by CONTRACTOR which do not

involve any additional cost or effect on schedule.

b) Changes in CONTRACTOR'S WORK required on account of CONTRACTOR

not having included any item of EQUIPMENT or WORK which in the opinion of

OWNER/CONTRACTOR is necessary for the normal safe and continuous

operation of PLANT as referred to in clause 5.3.4.

5.7.0 MECHANICAL COMPLETION

5.7.1 MECHANICAL COMPLETION for PLANT is defined as the date at which PLANT after

mechanical erection and pre-commissioning, is ready for acceptance of feed to be

introduced to and can continue to receive feed leading to production of PAC.

5.7.2 MECHANICAL COMPLETION shall include completion of all required activities of

mechanical erection and pre-commissioning including but not limited to the following

activities:

5.7.3 Mechanical Erection

a) PLANT or the portion there of is installed in accordance with the drawings,

specifications, and contracts, including any approved changes thereto, and in

accordance with all applicable codes and laws.


Page (103)

b) All coded pressure equipment is hydrostatically or pneumatically tested once

either in the supplier's shop or in the field in accordance with applicable codes or

purchase specifications.

c) Fired heaters and boilers are hydrostatically or pneumatically tested. All non-

operating pre-firing checks are made in accordance with manufacturer's

instructions. Operation of registers and dampers is checked and position of

indicators verified.

d) Compressor, Pumps, machinery and all drives are cold aligned. Couplings are

assembled and guards installed.

e) Instruments are installed, inspected, and such non-operating checks are made as to

assure operability in-the manner required for the process application. Instrument

air lines are checked for correct hook-up. Air lines are leak-tested. Orifice plates

are checked for correct bore diameter, ready for OWNER'S installation after

completion of flushing operations.

f) Relief valves are installed. Prior to this, they will have been checked by the

VENDOR in the VENDOR'S shop and rechecked at SITE.

g) Piping is hydrostatically or pneumatically tested in accordance with the

specifications. Special treatment, such as chemical cleaning, is done as required

by the drawings or specifications. Suction screens are installed. Test blinds are

removed. Spring supports, anchors, and guides are checked for removal of all

shipping and erection stops and for correctness of cold settings.

h) The electrical system is installed, integrating with the electrics System of

PROJECT and tested in accordance with and to the extent required by the

electrical specifications. All wiring is checked for correct hook-up. Motor

rotation is checked. All power system protective devices are set. f

i) Insulation is complete to the extent necessary to permit the start of commissioning

and start-up.

j) Painting is completed to the extent that the incomplete work does not prevent the

start of commissioning and start up.

k) All inert packing and bed support materials such as raschig rings and alumina

balls be installed.

I) Temporary construction facilities are removed to the extent necessary to permit

the start of commissioning and start-up.


Page (104)

5.7.4 Pre-commissioning

The following is a list of typical work performed including but not limited to, after

PLANT is mechanically complete.

a) Materials and labour are provided to flush, grease, pack, and lubricate all pumps,

compressors, other machinery, and their drives.

b) All machinery and drives are run-in, hot-checked for alignment, and doweled.

Necessary adjustments are made as result of running-in, including resetting

turbine over speed trips.

c) Control valves are installed. Instruments, analyzers, controls, interlocks, alarms,

and related items are commissioned, including operating checks, provision and

installation of seal fluids are required, checking and adjusting settings,

standardizing, and calibration and proof tests.

d) Electrical relays and trips are commissioned and tested.

e) Feedstock, refrigerants, utilities, catalysts, and chemicals are supplied, handled,

installed, and prepared for operation, including any catalyst preparation

procedures.

f) Valves are lubricated, packed or re-packed, adjusted, or otherwise serviced.

g) Temporary strainers are removed, cleaned, and reinstalled.

h) Slip blinds required in preliminary circulation and start-up lines are installed and

removed.

i) Equipment and lines are flushed, purged, blown, and dried as required for

cleanliness, safety, and process considerations. All flanges are boxed up with

proper gaskets.

j) Final adjustments are made to pipe, supports and hangers.

k) All fire protection and safety facilities are commissioned and put into operation

and all safety provisions initiated, including practices, procedures, permits, and

other precautionary measures needed to ensure the safety of personnel and

property.

5.7.5 As soon as MECHANICAL COMPLETION has been achieved, CONTRACTOR shall

present PLANT for inspection and on being satisfied about its completion, OWNER shall

issue a certificate to CONTRACTOR within 7 DAYS indicating the date of

MECHANICAL COMPLETION, provided PLANT can continue to receive feed leading

to production of PAC.


Page (105)

5.7.6 CONTRACTOR shall guarantee that MECHANICAL COMPLETION as defined above

will occur timely so that commercial production can start within 18 MONTHS from

EFFECTIVE DATE.

5.7.7 If MECHANICAL COMPLETION is not achieved within the time specified in clause

5.7.6 then CONTRACTOR shall pay liquidated damages to OWNER at the rate of 0.5%

of CONTRACT PRICE per completed week subject to a maximum limit of 5% of

CONTRACT PRICE.

5.8.0 PERFORMANCE GUARANTEES

5.8.1.1 CONTRACTOR guarantees performance of PLANT as specified under the following

headlines:

Conditions for Guarantees

PAC Capacity

PAC Quality

Consumption Basis for WORKS (Operating) COST Maximum Supply

Sample Calculation of WORKS COST Pollution Level Noise Level

5.8.1.2 Conditions for Guarantees

For proving the performance guarantees, the following will be provided to the

CONTRACTOR:

a) Raw materials and utilities are available in sufficient quantities conforming to the

specifications supplied to CONTRACTOR by OWNER and used as the design basis for

PLANT.

b) PLANT is operated under the direction and supervision of CONTRACTOR.

5.8.1.3 Capacity

PAC PLANT shall have a production capacity not less than the following :

PAC PRODUCTION Capacity: 50,000 MTPA with minimum operating hours of 8000 in

a year

5.8.1.4 PAC product Quality

The quality of PAC produced in the PLANT shall be according to the specifications

indicated in technical part at clause 6.2.4.1 of Section-6.


Page (106)

5.8.1.5 Consumption

All instrument tolerances and shall be calculated on the basis of the readings indicated by

the duly calibrated specific meters and certified by OWNER as being correct forming part

of instrumentation already provided by CONTRACTOR in design package under

CONTRACT.

5.8.1.6 Basis for Works Cost

Raw Materials & Utilities for the PLANT shall be: (BIDDER to furnish guarantee

figures per MT of PAC)

Item Unit

Alumina MT BIDDER

TO

INDICATE

HCl(32%) MT

Steam MT

Power KWH

Process Water M3

DM Water M3

Cooling Water M3

Chilled Water M3

Others (To be specified, if any)

Based on the above guaranteed consumption figures and its unit cost mentioned below, the

Works Cost will be worked out.

The WORKS COST will be calculated on the basis of the following unit prices of

Alumina, HCl as feed, electric power, make-up water for cooling tower and DM plant, and

export steam as below.

a. Alumina 20000 Rs./MT

b. HCl 400 Rs./MT

c. Steam 2500 Rs./MT

d. Electric Energy 6.75 Rs./kWh

e. Process Water 25 Rs./M3

f. Cooling Water 3 Rs./M3

g. Chilled Water 5 Rs./M3

h. Natural Gas 15 USD/MMBTU


Page (107)

5.8.1.7 Sample Calculation

Calculation of the guaranteed WORKS COST shall be made as shown in the following

sample calculation:

Item Consumption Rate Cost

per ton PAC Rs/unit per ton

a. Alumina

b. HCl Consumption

c. Steam

d. Electric Energy

e. Process Water

f. Cooling Water

g. Chilled Water

h. Natural Gas

- Total expected "WORKS COST" per MT of PAC

- Guaranteed "WORKS COST" per MT of PAC

The WORKS COST excludes cost of materials and utilities required for tank and building

heating, steam tracing, lighting, ventilation, air conditioning, gas for flare pilot burners, and

the consumption and consequent costs of such materials which are not usual in the operation

of PLANT.

5.8.1.8 Pollution Level

CONTRACTOR guarantees arrangement and Pollution level in the . liquid effluents

discharged at BATTERY LIMITS and gaseous emissions from PLANT to the atmosphere

as specified in Technical Specifications and Final Proposal. This guarantee and the

pollution level apply only to gaseous emission from PLANT and to combined process

liquid effluent stream. Determination of the ability of PLANT to meet these guarantees

will be made during the three days' guarantee test or at any other time under similar

conditions prior to the PLANT ACCEPTANCE .In the event guaranteed pollution level

referred to in Technical Specifications and Final Proposal are not fulfilled during the 3

days guarantee test, CONTRACTOR shall with no charge to OWNER, re-perform the

engineering and all other services so as to enable PLANT to meet the guaranteed pollution

level.

The PLANT should meet all guide lines of charter on Corporate Responsibility for

Environment Protection (CREP) for Inorganic Chemical Industry released by Government

of India.


Page (108)

(A) The gaseous effluents guarantees as under:

Quantity: ________________ Nm3/Hr

Composition: ____ In Mol %

(B) Waste Gases :

Quantity: ________________ Nm3/Hr

Composition: ____ In Mol %

(C) Waste Liquids :

Quantity: ________________ Kg/Hr

Composition: ______________ In Wt. %

(D) Waste Solids:

Quantity: ________________ Kg/Hr

Composition: _____________ In Wt. % 5.8.1.11 Noise Level

CONTRACTOR shall in the lay-out make its best efforts in consultation with OWNER to

ensure that the noise level at the, boundary of PLANT does not exceed 65 decibels.

5.9.0 PERFORMANCE TESTS

5.9.1 General

CONTRACTOR shall prove the performance guarantees specified in clause 5.8.0 during

tests of PLANT as specified in this clause 5.9.0 under the following headlines:

- Sustained Load Test - Completion of Sustained Load Test - Notice of Guarantee Test - Guarantee Test - Measurements during Guarantee Test - Inconsistent Measurements - Deviations from Specifications - Deficiencies or Mechanical Defects - Guarantee Test Results

5.9.2 Sustained Load Test

After MECHANICAL COMPLETION has occurred, CONTRACTOR shall commence


Page (109)

the pre-commissioning and commissioning operations of PLANT leading to production of

PAC. After PLANT has been commissioned and at least near rated daily capacity has been

achieved, CONTRACTOR'S authorized representative shall give notice in writing to

OWNER that PLANT is ready for a sustained load test On receipt of this notice, but not

later than 15 DAYs after the notice, OWNER shall conduct the sustained load test under

the direction and supervision of CONTRACTOR for a consecutive period of 10 DAYs or

lesser period as decided by OWNER The sustained load test of PLANT shall be deemed to

have been completed if PLANT produces an average of not less than 95% of the daily

rated capacity. If, during the sustained load test, there are interruptions due to reasons not

attributable to the obligations and responsibilities of CONTRACTOR, periods of such

interruptions shall be included and regarded as DAYs of operation at 95% of design

capacities or actual load prior to interruptions whichever is lower. The cumulative period

of interruptions shall be limited to a maximum of 3 (three) DAYS. However, the Parties

agree that the test shall continue for a lesser period as decided by OWNER, not necessarily

consecutive, of actual operation at an average rate of at least 95% of daily rated production

has been achieved. OWNER shall have option to reduce the period of sustained load test

of 10 DAYs or lesser period. During the sustained load test, CONTRACTOR shall use its

best efforts to ensure that pollution level and noise level are within the limits specified in

the CONTRACT. CONTRACTOR shall endeavors to complete the sustained load test

within a reasonable period after MECHANICAL COMPLETION, but shall complete the

same in any case within 90 DAYs from MECHANICAL COMPLETION If, during the

sustained load test, corrective measures are required and involve procurement of new

items of EQUIPMENT or modification of items of EQUIPMENT which require longer

period for delivery than covered by the 90 DAYs period, the period shall be suitably

adjusted as agreed with OWNER. However, design engineering and placement of orders

shall be completed within 90 DAYs from MECHANICAL COMPLETION. On

satisfactory completion of the sustained load lest, the results achieved shall be tabulated

and jointly signed by CONTRACTOR'S and OWNER'S representatives within seven

DAYs of completing the sustained load test. During the sustained load test, no standby

items of EQUIPMENT shall be used in parallel for proving this guarantee.

5.9.3 Notice of Guarantee Test

On successful completion of the sustained load test, CONTRACTOR shall give notice in

writing for commencing the guarantee test. On receipt of the notice, but not later than 7

DAYs after the notice, OWNER shall conduct the guarantee test under the direction and


Page (110)

supervision of CONTRACTOR. During the guarantee test, no stand by items of

EQUIPMENT shall be used in parallel for proving the guarantee. The range of operating

conditions shall be within the design conditions.

5.9.4 Guarantee Test

The guarantee test shall be carried out for 3 (three) consecutive DAYs. In determining the

ability of PLANT to meet the guarantees as specified in clause 5.8.0. all feed rates,

product rates and quality, and utility consumption shall be averaged over a period

consisting of 72 consecutive hours selected out of the 5 (five) DAYs test period. The 72

consecutive hours period shall exclude periods during the test when the operating

conditions are other than those recommended or approved by CONTRACTOR or periods

of non-operation due to failure of EQUIPMENT, lack of sufficient feed or utilities, or any

other cause beyond the control of CONTRACTOR including the period required to bring

PLANT back to operation at the rate of production achieved prior to the upset. For the

purpose of computing the average performance, CONTRACTOR shall select any 72 hours

out of the 5 DAYs test period so long as this includes a continuous and uninterrupted run

of 60 (Sixty) hours and the aggregate total hours of interruptions do not exceed 48 hours

out of the total 120 hours. Otherwise, the guarantee test shall be repeated. If the guarantee

test has not been conducted within a period of 6 (Six) MONTHs from MECHANICAL

COMPLETION for reasons not attributable to CONTRACTOR, then CONTRACTOR

and OWNER shall consult for further course of action.

5.9.5 Measurements during Guarantee Test

For determination of the average performance achieved during the guarantee test, all

inputs and outputs shall be measured through appropriate meters specified by

CONTRACTOR and jointly calibrated and certified to be correct by CONTRACTOR and

OWNER. CONTRACTOR shall have all measurements and records certified by OWNER

during the test.

5.9.6 Inconsistent Measurements

If any measurement is demonstrably inconsistent with the bulk of the data, or is otherwise

suspected to be incorrect, then the data will be adjusted, to achieve consistency and

correctness in accordance with generally accepted engineering principles and practice as

mutually agreed by OWNER and CONTRACTOR No other adjustments shall be made on

the measurements and data recorded during the guarantee test.


Page (111)

5.9.7 Deviations from Specifications

In the event that the feed , utilities, climatic conditions, or any other condition is not in

accordance with conditions specified or referred to in CONTRACT and are prejudicial to

CONTRACTOR or OWNER as demonstrated by CONTRACTOR or OWNER, OWNER

and CONTRACTOR shall mutually, reasonably, and in good faith negotiate an adjustment

to the performance guarantees specified in 5.8.0. Any such adjustments to the performance

guarantees shall be made utilizing the same methods of calculation as were used in

establishing the original performance guarantees to the extent such methods continue to be

applicable in accordance with good engineering principles and practice.

5.9.8 Guarantee Test results

Within a reasonable period of time after completion of the guarantee test, CONTRACTOR

shall determine the results thereof and certify to OWNER when, in CONTRACTOR'S

judgement, the performance guarantees have been demonstrated. The performance

guarantees shall be deemed to have been demonstrated, if CONTRACTOR certifies that

the guarantee test was successful and submits its calculations and records in support

thereof to OWNER, and if OWNER accepts the same in writing. In case, however,

OWNER does not accept the performance guarantee results, OWNER shall indicate in

writing to CONTRACTOR in what respect the performance guarantees have not been met.

In such case both the parties shall consult and arrive at a amicable solution.

5.10.0 CORRECTIVE MEASURES AND LIQUIDATED DAMAGES

5.10.1 General

The performance guarantees are subject to and contingent upon the conditions specified in

clause 5.8.0 and the following further conditions

a) CONTRACTOR shall before start-up certify that PLANT is constructed in

accordance with the drawings and specifications furnished by CONTRACTOR

b) MECHANICAL COMPLETION occurs within a period of 18 MONTHs after

EFFECTIVE DATE excluding the period of force Majeure

If the performance guarantees pursuant to clause 5.8.0 are not met during a guarantee test


Page (112)

pursuant to clause 5.9.0, CONTRACTOR shall make modifications and/or take corrective

measures and/or pay liquidated damages as specified in this clause under the following

headlines:

CONTRACTOR'S Option

Liquidated Damages

OWNER'S Request for Modifications

Modifications by CONTRACTOR

Statement about Corrective Measures

Corrective Measures by CONTRACTOR

Adjustment of Fees

Extension of MECHANICAL COMPLETION Further Modifications by

CONTRACTOR

5.10.2 CONTRACTOR'S option

In the event that the performance guarantees for PLANT is not fulfilled, CONTRACTOR

shall arrange to perform subsequent guarantee tests. However, CONTRACTOR shall have

the option of modifying the PLANT as specified in clause 5.10.5 or of paying liquidated

damages as specified in clause 5.10.0 in the event that the guarantee test results are within

the ranges as follows:

a) The production capacity for PAC at least 95% of the guaranteed capacity.

b) The consumption of raw materials and utilities (in terms of WORKS COST) is at most

105% of the guaranteed WORKS COST.

c) Remaining Performance Guarantees have been met, except deficiency with respect to

Quality of product, Pollution Level for which CONTRACTOR will re-perform the

engineering and other services till the guaranteed quality of product and Pollution

Level has been met.

5.10.3 Liquidated Damages

The liquidated damages referred to in clause above shall be calculated as follows

a) For deviation from the guaranteed production capacity for PAC production

capacity, liquidated damages shall be calculated at the rate of 0.5% of the

CONTRACT PRICE per each 1% (or part thereof) the actual PAC production capacity

is lower than the guaranteed capacity.


Page (113)

In the event the PAC production capacity achieved is less than 95 % of the guaranteed

capacity, the CONTRACTOR shall execute corrective engineering and modify the

PLANT and make PLANT good at its own cost until at least 95 % of guaranteed

capacity is obtained.

b) For deviation from guaranteed consumption of raw materials and utilities (in terms

of WORKS COST), liquidated damages shall be calculated at the rate of 0.5% of the

CONTRACT PRICE per each 1% (or part thereof) the actual WORKS COST is

higher than the guaranteed WORKS COST.

In the event the WORKS COST is more than 105% of the guaranteed WORKS COST,

the CONTRACTOR shall execute corrective engineering and modify the PLANT and

make PLANT good at its own cost until at least 105% of guaranteed Operating Cost is

obtained.

c) Should the guaranteed quality of PAC as per clause 6.2.4.1 of Section - 6, at

guaranteed capacity not be achieved, the CONTRACTOR shall execute corrective

engineering and modify, replace the PLANT at its own cost until the guaranteed

quality of PAC is obtained.

d) Should the guaranteed effluent quantity and quality as well as noise level of

PLANT, at guaranteed capacity not be achieved, the CONTRACTOR shall execute

corrective engineering and modify, replace the PLANT at its own cost until the

guaranteed effluent quantity and quality as well as noise level of PLANT is obtained.

5.10.4 OWNER'S request for modifications

If CONTRACTOR elects to pay liquidated damages, but OWNER requests in writing that

CONTRACTOR makes or continues to make modifications, alterations, or additions,

CONTRACTOR may do so pursuant to clause 5.10.5

5.10.5 Modifications by CONTRACTOR

In the event that the performance of PLANT as demonstrated during the guarantee test is

within the ranges specified in clause 5.10.2 and CONTRACTOR wishes to make


Page (114)

modifications pursuant to clause 5.10.4, CONTRACTOR may, during the period of 180

DAYs from the start of the first guarantee test, make such modifications, alterations, or

additions to PLANT as are necessary to enable PLANT to meet the performance

guarantees. During the 180 DAYs' period CONTRACTOR shall carry, out these

modifications, alterations, and additions, and shall repeat the guarantee test as often as

required so as to prove the performance guarantees. The entire costs associated with such

modifications, alterations, and additions including all related services necessary to enable

PLANT to meet the performance guarantees shall be borne by CONTRACTOR.

5.10.6 Statement about corrective measures

In the event that after modifications pursuant to clause 5.10.5 the performance guarantees

of PLANT are not met within 30 (thirty) DAYs from the beginning of the first guarantee

test, OWNER may request CONTRACTOR to give a full and detailed statement in writing

to OWNER within 10 (ten) DAYs of notice to do so. The statement shall contain the

detailed description and corrective measures which CONTRACTOR intends to take and

the time or times required for the same to be completed and a guarantee test to be made

CONTRACTOR shall wherever possible carry out or have carried out in accordance with

the provisions of CONTRACT such corrective measures for which CONTRACTOR has

responsibilities, and repeat the guarantee test within the shortest possible time, but not

later than 180 DAYs from the beginning of the first guarantee test unless otherwise agreed

with OWNER.

5.10.7 Corrective measures by CONTRACTOR

If the corrective measures specified in clause 5.10.6 involve procurement of new items of

EQUIPMENT or modification of existing items of EQUIPMENT which require a longer

period for delivery than covered by the 180. DAYs' period, the period allowed for

corrective measures shall be most suitably adjusted with the consent of OWNER

However, all WORK relating to design, engineering, and procurement for such long

delivery items of EQUIPMENT shall be completed at the earliest possible time but not

later than 90 DAYs from the beginning of the first guarantee test. OWNER may submit its

comments to CONTRACTOR in writing regarding such corrective measures, and such

comments shall be considered carefully by CONTRACTOR prior to undertaking such

corrective measures. CONTRACTOR shall discuss with OWNER any differences of

opinion that may be reflected in OWNER'S comments to CONTRACTOR'S statement.


Page (115)

The limit of 180 DAYs from the first guarantee test run is only an outer and maximum

limit and CONTRACTOR shall commence

WORK immediately to ensure rectification within a minimum time, so as to minimize the

loss to OWNER. Nothing herein shall deprive OWNER of its rights to terminate

CONTRACT in accordance with the provisions of the CONTRACT in the event of

CONTRACTOR'S default as provided herein.

5.10.8 Adjustment of Fees

Subject to the provisions of clause 5.10.9 if the performance guarantees are not met within

the period of 180 DAYs from the start of the first guarantee test OWNER has elected not

to claim the liquidated damages under clause 5.10.4, then OWNER may request that an

adjustment of the fees under CONTRACT be made by mutual consent and confirmed in

writing and all of CONTRACTOR'S liabilities under CONTRACT shall terminate.

5.10.9 Further modifications by CONTRACTOR

If the guarantee test results obtained during guarantee tests within the period of 180 DAYs

from the start of the first guarantee test extended by the time lost for, delays due to Force

Majeure do not fall within the ranges specified in clause 5.10.2, CONTRACTOR shall

make or cause to be made such further modifications, alterations, or additions to PLANT

as may be required to enable it to achieve guarantee test results falling within the ranges

specified in clause 5.10.2 The entire costs associated with such modifications, alterations,

or additions shall be to CONTRACTOR'S account.

5.11.0 Acceptance of PLANT

5.11.1 CONTRACTOR'S liability for the performance guarantees given for PLANT for plant

capacity, consumption, product quality, and Pollution Level shall be discharged when the

performance tests of PLANT have been successfully carried out as stipulated in

5.9.0/5.8.1,7 Alternatively, CONTRACTOR'S liability for such guarantees shall also be

discharged on the occurrence of any of the following events.

a) Liquidated damages as specified in clause 5.10.2 have been paid to OWNER and

guarantees for Pollution Level pursuant to clauses 5.8.1.7 have been met.

b) OWNER notifies CONTRACTOR in writing that OWNER does not require


Page (116)

demonstration of performance guarantees by a guarantee test

c) An adjustment of CONTRACTOR'S fees is made by mutual CONTRACT in

writing as provided in clause 5.10.8.

d) OWNER elects not to carry out any modification as may be requested by

CONTRACTOR pursuant to clauses 5.10.5 and 5.10.7

e) PLANT has not passed successful performance test within 36 MONTHS extended

by the period of Force Majeure, if any, after EFFECTIVE DATE for reasons not

attributable to CONTRACTOR.

5.11.2 Within 30 (thirty) DAYs from the discharge of CONTRACTOR from liability for

performance guarantees, OWNER shall send to CONTRACTOR a signed Certificate for

Acceptance of PLANT. On issue of this Certificate of Acceptance by OWNER,

CONTRACTOR shall become entitled to receive payment of all unpaid amounts due to

CONTRACTOR subject to CONTRACTOR'S fulfilling the obligations stipulated under

the CONTRACT.

5.11.3 In the event of CONTRACTOR'S liability for performance guarantees has been

discharged under paragraphs (a) through (e) of clause 5.11.1, and if OWNER thereafter

requests that CONTRACTOR furnishes operating advisers and other expatriate personnel

to direct a performance test of PLANT and to comment or report thereon,

CONTRACTOR shall furnish to OWNER such supervisory personnel for a maximum

period of 12 MONTHs from PLANT ACCEPTANCE at rates specified in the commercial

proposal.

5.12.0 DESIGN AND VENDORS'GUARANTEES

5.12.1 General

Design and VENDORS' Guarantees are given in this clause under the following headlines.

Design Guarantee

VENDORS’ Guarantees

Faulty EQUIPMENT caused by VENDORS

Faulty EQUIPMENT caused by CONTRACTOR

Enforcement of VENDORS' Guarantees

Delivery Schedule


Page (117)

5.12.2 Design Guarantee

CONTRACTOR shall prepare and be responsible for the design and engineering

documentation for PLANT in accordance with FINAL PROPOSAL and the provisions of

CONTRACT. In the event of any errors in CONTRACTOR'S or VENDOR'S design or

engineering or specifications of EQUIPMENT requiring correction for which OWNER

gives written notice within 15 (fifteen) DAYs after discovery thereof and prior to the

expiration of a one year period commencing from the PLANT ACCEPTANCE ,

CONTRACTOR shall perform or cause to be performed such additional design and re-

engineering as may be necessary to correct such error and prepare for OWNER, Purchase

Order for any additional materials or EQUIPMENT required and called for by such

additional design and re-engineering for which CONTRACTOR is responsible. The entire

cost and expense of such additional design, engineering, supply and erection shall be

borne by CONTRACTOR. In case CONTRACTOR has to modify or prepare further

documentation, the validity of the guarantees given by CONTRACTOR in connection

there with shall be agreed with OWNER. CONTRACTOR shall also provide other

services related to WORK that may be required in connection with the aforesaid additional

design and re-engineering without additional cost to OWNER.

5.12.3 VENDORS Guarantees

CONTRACTOR shall be responsible to obtain for the benefit of OWNER, for all items of

EQUIPMENT procured for PLANT an undertaking to replace or repair any item of

EQUIPMENT which shall be demonstrated to be defective under normal operating

conditions within 18(eighteen) MONTHs from the date of start-up of PLANT. The

PURCHASE ORDERS issued by CONTRACTOR shall contain all guarantees available

from VENDOR for EQUIPMENT covered by PURCHASE ORDER.

5.12.4 Faulty Equipment Caused By VENDORS

The CONTRACTOR shall be liable to OWNER for VENDORS' supply of

EQUIPMENT and any redress for incomplete . EQUIPMENT supplied by VENDOR

and covered by VENDOR'S guarantees.

5.12.5 Faulty Equipment caused by CONTRACTOR

In case a defect in EQUIPMENT is due to an error in specifications prepared by


Page (118)

CONTRACTOR, CONTRACTOR shall undertake engineering, procurement, inspection

and installation etc at its own cost In the event that as a result of faulty EQUIPMENT

installed in PLANT due to CONTRACTOR'S faulty specifications, PLANT does not

during the one year period after ACCEPTANCE DATE operate within the ranges

specified in clause 5.10.2 to be demonstrated by a guarantee test conducted by OWNER in

accordance with the provisions of the CONTRACT, CONTRACTOR will have

responsibility for replacing at its own cost the item or items of EQUIPMENT that caused

the prime deficiency in performance of PLANT.

5.12.6 Enforcement of VENDOR'S Guarantees

CONTRACTOR agrees to use its best efforts, to enforce the guarantees against VENDOR

and further agrees to fully cooperate with and assist OWNER in the enforcement of such

guarantees. All related costs during the guarantee period shall be borne by

CONTRACTOR.

5.12.7 Delivery Schedule

CONTRACTOR shall use its best efforts to arrange the schedule for delivery of all

EQUIPMENT, and more particularly PRINCIPAL ROTATING MACHINERY, so that

the VENDOR'S guarantee period shall not expire, before the end of the 18 (eighteen)

MONTHS period of operation from the date of start-up of PLANT.

5.13.0 PATENT INFRINGEMENT AND INDEMNIFICATION

5.13.1 CONTRACTOR shall at all times indemnify and keep indemnified OWNER against all

claims or suits and defend, at its own cost, any suit or action brought against OWNER and

hold OWNER free and harmless against all costs of such claims or suits which may be

made against OWNER in respect of any infringement of any rights protected by patent,

copyright, trade marks, and trade secrets to the extent that such claim, suit, or action is a

result of the use of CONTRACTOR'S Technical Information for the construction,

maintenance, and operation of PLANT and the use of CONTRACTOR'S and/or any other

process licenser's processes used in PLANT. OWNER shall pass on all claims made

against it to CONTRACTOR for settlement.

5.13.2 CONTRACTOR declares that to the best of its knowledge and belief the use of

CONTRACTOR'S Technical Information for the construction, maintenance,, and

operation of PLANT and the use of CONTRACTOR and/or any other process licenser's


Page (119)

processes used in PLANT will not infringe any valid patent rights of a third party.

However, if at any time such infringement arises, CONTRACTOR agrees to keep

OWNER indemnified and harmless against such claims and costs thereof and make

arrangements that will allow OWNER to continue the operation of PLANT.

5.13.3 OWNER shall promptly advise CONTRACTOR in writing of any claim of infringement

or any action for infringement of patents brought against it by a third party and based upon

the use of CONTRACTOR'S Technical Information If such use is in accordance with

'instructions given in writing by CONTRACTOR,

CONTRACTOR shall undertake the defense, or assist OWNER in the defense, of the

claim or suit to final judgment or settlement

5.13 4 CONTRACTOR shall undertake the defense on behalf of OWNER and shall have sole

charge and direction of the defense, and shall bear all costs related thereto

CONTRACTOR shall further held OWNER harmless from any damages or other sums

that may become payable by OWNER under a final judgment or settlement. However,

OWNER shall render to CONTRACTOR all reasonable assistance that may be required

by CONTRACTOR in the defense, and shall have the right to be represented therein by

advisory counsel of its own selection and at its own expense.

5.13.5 In addition to the measures specified in clause 5.13.4, CONTRACTOR may further, at its

option, however, in reasonable consultation with OWNER, seek to abate the alleged

infringement by modification of PLANT or its operation without adversely affecting the

performance and/or secure for OWNER immunity from suit for infringement. In such

case, CONTRACTOR shall reimburse OWNER for all costs related to said modifications

and to said immunity.

5.13.6 In the event that OWNER is legally restrained from operating PLANT on account of any

infringement action or suit, CONTRACTOR shall take AW possible actions to allow

OWNER to operate and use PLANT.

5.13.7 Neither CONTRACTOR nor OWNER shall settle or compromise any suit or action

without the written consent of the other if settlement or compromise obliges the other to

make any payment or part with any property or assume any obligations or surrender any

rights or to be subjected to any injunction by reason of such settlement or compromise.


Page (120)

5.14.0 INDEMNITIES

5.14.1 CONTRACTOR Indemnification for Liabilities.

To the fullest extent permitted by Law, CONTRACTOR assumes liability for, and agrees

to indemnify, protect, save and hold harmless the OWNER from and against any and all

Liabilities (including, any strict liability), of whatsoever kind and nature and whether or

not involving damage to the Project or the Site that may be imposed on, suffered or

incurred by or asserted against OWNER and in any way relating to or arising out of (i) the

Work, any Material or the Project, (ii) the presence, discharge, treatment, storage,

transportation, disposal, escape or release of any Hazardous Substance, or the threat

thereof, at, to or from the Site after commencement of work (iii) The performance of the

Work, or as a result of personal injuries (including wrongful death); (iv) the violation by

CONTRACTOR or any SUB-CONTRACTOR of any Government Approval or applicable

Law relating to the Work or the Project or (v) any breach of CONTRACT with any

SUB¬CONTRACTOR; provided, however, that CONTRACTOR shall not be required

under this clause 5.14.1 to indemnify OWNER for any liability arising out of or resulting

from events or circumstances occurring or existing after preliminary acceptance except

where the liability arises from an act or omission of CONTRACTOR or any SLIB-

CONTRACTOR or any other Person directly or indirectly employed by either of them or

anyone for whose acts either of them may be liable that was a contributory cause of such

liability

5.14.2 CONTRACTOR Indemnification for Taxes.

It is specifically understood that CONTRACTOR hereby accepts and assumes exclusive

liability for shall and save and hold the OWNER harmless from and against of all Taxes

arising from the performance of the Work, and all such Taxes shall be deemed to be

included in the CONTRACT price.

5.14.3 Indemnification by SUB-CONTRACTORS.

CONTRACTOR shall obtain from each SUB-CONTRACTOR which is an affiliate, and

shall use all reasonable efforts to obtain from each other SUB-CONTRACTOR, an

indemnification materially similar in form and substance to clauses 5.13, 5.14.1 and 5.14.2

of which the OWNER shall be named as beneficiary.


Page (121)

5.14.4 Common Law Remedies.

The above provisions of this clause 5.14 shall not deprive OWNER of any indemnity,

action, right or remedy otherwise available to OWNER at common law or otherwise.

5.14.5 Payment of Amounts under this clause.

Except to the extent covered by insurance, all amounts payable by CONTRACTOR to

OWNER under this clause 5.14 shall deducted from the CONTRACT Price or any other

amounts owed by OWNER to CONTRACTOR here under. If such amounts payable by

OWNER to CONTRACTOR are less than the amounts payable by CONTRACTOR under

this clause 5.14, CONTRACTOR shall be liable to OWNER for such excess and shall pay

such amount to OWNER immediately upon demand.

5.15.0 LIMITATION OF LIABILITY

5.15.1 Notwithstanding anything contained elsewhere in CONTRACT or implied to the contrary

CONTRACTOR'S entire liability under CONTRACT, but excluding liability under the

provisions of clauses 5.15.2 shall be limited to 10 % of the CONTRACT PRICE.

5.15.2 Notwithstanding the provisions of sub-clause 5.15.1, CONTRACTOR'S liability shall be

unlimited in the following cases:

5.15.2.1 a) The PAC production capacity of PLANT is lower than 95% of the guaranteed daily

production..

b) The PAC product quality is not achieved as guaranteed

c) The WORKS COST of PAC PLANT is higher than 105% of the guaranteed

WORKS COST.

d) For providing immunity against Patent infringement pursuant to Article 5.13.0

e) For providing immunity against indemnification pursuant to Article 5.14.0

f) The Pollution level and Noise level Guarantees as per Article -5.8.1.10 and Article

5.8.1.11 have not been met. :-

g) The sustained load test is not successfully conducted within 90 DAYS from

MECHANICAL COMPLETION.


Site working and safety conditions as per Annexure-5.1 shall be followed by the CONTRACTOR.


Page (122)

ANNEXURE-5.1

SITE WORKING AND SAFETY CONDITIONS

1.0 SITE LOCATION

1.1 The location of the proposed site is at OWNER'S TDI-II Complex located at Dahej,

40Kms from Bharuch. City of Bharuch is approximately 75 Kms south of Vadodara city

on National Highway No 8 (Delhi-Mumbai National Highway) in Gujarat,India.

1.2 The proposed site area is graded land. The soil condition at this site is black soil (0-1.7 m

deep) and Clay Silt with sand dense and Kankar compact (1.7-23 m deep).

The elevation of site is around 20.2 meters from mean sea level.

2.0 SITE ESTABLISHMENT

2.1 The CONTRACTOR shall provide all huts, stores, tarpaulins and other covers for the

accommodation of his staff, workmen and materials. All materials likely to deteriorate in

the open shall be stored under suitable cover.

2.2 The CONTRACTOR shall advise the OWNER within 15 DAYs of the placement of LOI

his space requirement which shall include for office, covered storage, open storage,

fabrication space, etc. Depending on availability & requirement, space shall be allotted to

the CONTRACTOR for the duration of this CONTRACT He will not be permitted to

make use of any other space without the sanction of the OWNER. The use of this space

shall strictly be made for the execution of this CONTRACT only. The sanitary conditions

of the ground in or around such structures shall, at all times, be maintained by the

CONTRACTOR in a manner satisfactory to the OWNER.

2.3 The Security of the CONTRACTOR'S EQUIPMENT and materials is his own

responsibility. He will ascertain what security arrangements are made on site by the

OWNER and take further steps/precautions he may think necessary. The OWNER accepts

no liability for loss or damage to the CONTRACTOR'S plant, tools or materials.

2.4 The material issued to the CONTRACTOR by the OWNER will remain under the custody

of CONTRACTOR as a trustee. However, title on the same will remain with the OWNER.


Page (123)

The CONTRACTOR will be responsible for loss or damage to such materials and shall

preserve them in good working condition as required for the CONTRACT and good

construction practices till such time that they are incorporated in the works on erected,

aligned and fully installed in position and handed over to the OWNER. In case the

OWNER feels that arrangements made by the CONTRACTOR are not adequate he shall

so advice the CONTRACTOR and the CONTRACTOR shall promptly take corrective

action In case the CONTRACTOR fails to take corrective action within a reasonable time,

the OWNER on advice of the CONTRACTOR shall take such corrective actions and

recover the cost thereof from the CONTRACTOR'S Bills. Account of such material on

completion of WORK, shall be rendered and surplus material returned to the OWNER as

per instructions of OWNER.

2.5 The CONTRACTOR shall clear away periodically any rubbish, scrap materials, etc. and

dump the same in the area indicated by the OWNER. All construction material shall be

neatly stacked in an orderly manner as directed by the OWNER and care shall be taken to

allow proper access to workmen and easy movement of men, vehicles, cranes and

materials.

2.6 The CONTRACTOR shall maintain all the drawings carefully mounted on the board of

appropriate size and well protected from the ravages of termites and other insects.

2.7 The CONTRACTOR shall not permit the entry to the site of any person not directly

connected/concerned with the WORK without first having obtained the written permission

of OWNER.

2:8 The CONTRACTOR shall submit a list of tools, tackles, etc. which he will use, to perform

the WORK. The CONTRACTOR shall submit a list in duplicate of all materials, tools and

tackles etc. brought in-side the plant site duly signed by OWNER'S security staff as per

the rules laid by OWNER for this Project site. These tools, etc. shall not be removed from

the site till the completion of job. A gate pass must be obtained from the OWNER in order

to remove from Site any tools, materials and EQUIPMENT.

2.9 All items such as instructions and other pertinent data regarding erection/commissioning

and maintenance should be tagged and classified for transmittal in a manner approved by

the OWNER.

2.10 All employees of the CONTRACTOR shall conform to any rules of conduct, etc.


Page (124)

established by OWNER. Failure to do so will be sufficient cause for removal of such

person from the site.

2.11 The CONTRACTOR will be responsible for providing all plant, tools and tackles,

consumables and scaffolding required for the execution of his WORK as per the best

engineering practices.

2.12 The receipt, off-loading, movement and storage at site of all the CONTRACTOR'S plant,

tools and materials is his responsibility The receipt, movement & storage, if required, of

material issued by OWNER shall be the responsibility of the CONTRACTOR.

2.13 Electricity

The CONTRACTOR shall advise the OWNER within 7 DAYs of the placement of LOI

his electrical power requirements to allow the planning of the temporary electrical

distribution. Power, subject to availability, will be made available at one point within 100

meters distance from CONTRACTOR'S WORK site. CONTRACTOR shall make his own

arrangement at his cost for drawing power from the OWNER'S distribution board to his

own distribution board. The power supply shall be made available at 415V.3 Phase 50 Hz,

four wire system Electricity will be made available to the CONTRACTOR free of charge.

CONTRACTOR may be required to use his diesel driven Gensets at site. In his tender,

CONTRACTOR should indicate the no. of diesel gen. sets that can be deployed by him.

All temporary wiring from the supply point for either power or lighting will be

responsibility of the CONTRACTOR.

CONTRACTOR'S distribution board and temporary wiring shall be got approved / done

by certified electrician and must comply with local regulations and is subject to the

OWNER'S inspection and approval before connection to supply. For electrical safety

regulation, should be maintained. OWNER shall provide general illumination at site.

Additional lights, if required by CONTRACTOR, shall be arranged by CONTRACTOR.

2.14 Water

The CONTRACTOR shall advice the OWNER within 7 DAYs of the placement of LOI,

his water requirement. A free supply of water will be made available at one point on the

site. Any further distribution will be the responsibility of the CONTRACTOR.


Page (125)

2.15 First-Aid

The CONTRACTOR may have access to the OWNER'S qualified first-aid personnel and

ambulance, in case of accidents, if available. The CONTRACTOR will, however provide

a first-aid post for minor injuries to their staff.

3.0 SUPERVISION OF WORK

3.1 The CONTRACTOR shall submit to the OWNER a resume of his site-supervisors for

approval prior to commencement of the WORK once approved, the CONTRACTOR shall

not remove his site-supervisors without prior concurrence of the OWNER.

3.2 The entire WORK is to be completed as per the agreed time schedule The program of the

WORK in details shall be submitted by the CONTRACTOR before commencement of

WORK. The detailed programs prepared by the CONTRACTOR shall conform to the

targets set forth in the Time Schedule and will be subject to the approval of the OWNER

All the WORK shall be carried out in such a manner that the WORK of other agencies

operating at site is not hampered due to any action of the CONTRACTOR.

4.0 INSPECTION

The WORK of the CONTRACTOR is subject to inspection by the OWNER at all times.

5.0 EMPLOYMENT OF LABOUR

5.1 The CONTRACTOR will be expected to employ on the WORK only his regular skilled

employees with experience of his particular WORK. The permission of the OWNER must

be obtained before tradesmen are recruited locally for the WORK. This rule does not apply

to un-skilled labour. No person below the age of eighteen years shall be employed. The

CONTRACTOR shall pay to each person the minimum wages as per Gujarat Government

notification issued from time to time.

5.2 All traveling expenses including provision of all necessary transport to and from site,

lodging allowances and other payments to the CONTRACTOR'S employees are his own

responsibility.


Page (126)

5.3 The hours of WORK on the site shall be decided by the OWNER and CONTRACTOR

shall adhere to it. Monday through Saturday, working hours will be 8 (eight) hours per day

excluding lunch break etc.

5.4 All CONTRACTOR'S employees shall wear identification badges while on WORK site.

5.5 All notices displayed on the site and any instructions issued by the OWNER must be

strictly adhered to, by the CONTRACTOR'S and/or his sub-contractor's employees.

Further

i) CONTRACTOR shall arrange labour licenses as per rules from concerned

authorities at his own cost.

ii) CONTRACTOR, will take insurance cover for all his employees against accident

etc.

5.6 CONTRACTOR will arrange for Permits as necessary.

5.7 In case the OWNER becomes liable to pay any wages or dues to the labour of the

CONTRACTOR or his sub-contractor or any Govt, agency under any of the provision of

the Minimum Wages Act, Workmen Compensation Act or any other law due to act of

omission of the CONTRACTOR, the OWNER may make such payment and shall recover

the sum from CONTRACTOR'S bills.

5.8 The CONTRACTOR shall be required to produce documentary evidence to the effect that

he has discharged his obligations under the Employees Provident Fund Act 1952, for the

workmen working at site.

5.9 The OWNER shall allocate only space to the CONTRACTOR for his labour colony. It

shall be the responsibility of CONTRACTOR to provide suitable accommodation

including all necessary facilities However, subject to availability, electricity and water

shall be; provided at one place on chargeable basis. Further distribution, as required, shall

be done by CONTRACTOR..

6.0 REPORTING

a) The CONTRACTOR must report every week the following information to the

OWNER in writing each Friday:

I. Number of men employed, trade-wise.,

II. Progress achieved

III. Expected dates for completion of WORK;


Page (127)

IV. Any actual or potential delay in program caused by the action or inaction of

OWNER and other CONTRACTORS working at Site.

b) If during excavation any materials such as but not limited to precious materials or

treasure troves etc. are found, the same shall be reported to OWNER immediately. and

shall be the property of OWNER.

7.0 COMPLETION OF WORK

Before finally leaving site, all the CONTRACTOR'S huts, plant, tools and rubbish must be

removed and the site left clean and tidy.

8.0 INSURANCE CLAIM FOR DAMAGES

On receipt of material at Site, the CONTRACTOR shall promptly check for damages if

any and notify the OWNER and shall take necessary action for loading insurance claim for

damages.

9.0 WORKING AND SAFETY REGULATIONS

9.1 The CONTRACTOR will observe all Statutory and legal requirements issued by Central

& State Governments applying to the WORK as well as any local regulations applying tc

the site issued by the CONTRACTOR or any other authority.

9.2 Particular attention is drawn to the following:

i) In case of accident, the OWNER shall be informed in writing forthwith The

CONTRACTOR shall strictly follow regulations laid down by Factory Inspector, Govt,

and State authorities in this regard.

ii) Fencing all CONTRACTOR'S plant, platforms, excavations etc.

iii) Compliance with all electricity regulations

iv) Compliance with statutory requirements for inspection and test of all lifting appliances

and auxiliary lifting gear.

9.3 Staircases, doors or gangways must not be obstructed in any way that will interfere with

means of access or escape.


Page (128)

9.4 No excavations will be started without the permission of the OWNER, who will inform

the CONTRACTOR of the position of any pipes or cables known to be buried in the area.

All excavations must be effectively railed off at all times, or completely boarded over

properly marked during the hours of darkness by red warning lamps, using Flame-proof

warning lamps in non-smoking areas. Debris or material which cannot be immediately

removed must be heaped in such a way as to leave adequate passage way. Any finds such

as relics or antiques coins or fossils, etc. shall be promptly handed over to the OWNER.

9.5 The CONTRACTOR will notify the OWNER of his intention to bring on the site any

EQUIPMENT, such as, space heating or welding apparatus or any container holding liquid

or gaseous fuel or other substance which might create a hazard. The OWNER will have a

right to prohibit the use of such EQUIPMENT or to prescribe the conditions under which

such EQUIPMENT may be used The CONTRACTOR will have the right to inspect any

construction plant, and to forbid its use if in his opinion it is un-suitable or unsafe. No

claim arising there from shall be made by the CONTRACTOR. The CONTRACTOR or

any one acting on his instructions will not bring on to the site any radio-active substance

or any apparatus using such substances or any X-ray apparatus until written permission

and direction regarding the use of such EQUIPMENT has been received from the

OWNER.

9.6 The CONTRACTOR will meet all requirements, and act on the instructions of the

OWNER where it is necessary to operate a 'permit-to-WORK1 system.

9.7 Where it is necessary to provide and/or store petroleum products or petroleum mixtures

and explosive, the CONTRACTOR shall be responsible for carrying out such provision

and/or storage in accordance with the rules and regulation laid down in Petroleum Act.

1934, Explosive Act 1948 and Petroleum and Carbide of Calcium Manual Published by

the Chief Inspector of Explosives of India. All such storage shall have prior approvals of

the CONTRACTOR. In case any approvals are necessary from the Chief Inspector of

Explosives or any statutory authorities, the CONTRACTOR shall be responsible for

obtaining the same.

9.8 The CONTRACTOR shall have his own Fire Fighting Extinguishers and EQUIPMENT.

9.9 The CONTRACTOR shall be responsible for the provision of safety notices, safety

equipments including the safety gadgets for his workmen required by both the relevant


Page (129)

legislation and such as the OWNER may deem necessary

9.10 The CONTRACTOR shall be responsible for the safe storage of the radio-graphic sources

or those of his sub-contractors.

10.0 ELECTRICAL SAFETY REGULATIONS

10.1 In no circumstances will the CONTRACTOR interfere with fuses and electrical

EQUIPMENT belonging to the OWNER or other CONTRACTORS.

10.2 Before the CONTRACTOR connects any electrical appliances to any plug or socket

belonging to the other CONTRACTOR or OWNER, he will -

i) Satisfy the OWNER that the appliance is in good working condition;

ii) Inform the OWNER of the maximum current rating, voltage and phase of

appliance;

iii) Obtain permission of the OWNER dealing the sockets to which the appliance may

be connected.

10.3 The OWNER will not grant permission to plug in until he is satisfied that -

i) The appliance is in good condition and is fitted with a suitable plug;

ii) The appliance is fitted with a suitable cable having two earth conductors, one of

which shall be earthed metal sheath surrounding the cores;

10.4 No electric cable in use by the other CONTRACTOR/OWNER will be distributed without

prior permission. No weight of any description be imposed on any such cable and no

ladder or similar EQUIPMENT will rest against or be attached to it

10.5 The voltage for all portable EQUIPMENT e.g. drilling machines, temporary lighting etc.

will not exceed 240 volts.

10.6 No WORK must be carried out on any live EQUIPMENT. The EQUIPMENT must be

made safe and a 'permit-to-WORK' issued before any WORK is carried out.

10.7 CONTRACTOR shall employ electrician to maintain his temporary electrical installation.


Page (130)

ANNEXURE - 5.2 APPLICABLE INDIAN RULES. REGULATIONS AND ACTS

Latest edition of following rules / acts shall be applicable. 1. IBR - Indian Boiler Regulation Act

2. MINAS - Minimum national standard for nitrogenous fertilizer Industries.

3. IER-Indian Electricity rules

4. IEA - Indian Explosives Act

5. Indian Petroleum Act & Rules

6. Indian Factories Act.

7. NFPA - National Fire Protection Act

8. Manufacturing, Storage and Import of hazardous chemical rules,

9. EEA-Indian Electricity Act.

10. Indian Electricity Supply Act,

11. IS 875 - Design basis for wind load

12. IS 1893 - Design basis for earthquake.

13. INCOTERMS "2010"

14. IS - 2490 - Specification for Effluent

15. IS-456 - Specification for R.C.C. Works

16. Import. Export policy of Government of India,

17. Income Tax Act

18. Central Sales Tax Act

19. Gujarat Sales Tax Act / VAT

20. Central Excise & Salt Act

21. Industrial Disputes Act

22. Regulations for the Electrical Equipment of Buildings

23. IS-5572-1970: Classification of hazardous areas

24. IS-2148-1968: Flame proof enclosures of Electrical Equipment

25. IS-5571-1970: Guide for selection of electrical equipment in hazardous area

26. Fire insurance Regulations

27. National Electrical Code (NEC) of National Fire Protection Association (NFPA) USA

28. Fire Protection Manual (Red-book)

29. The Petroleum & Carbide of Calcium Manual

30. Explosive Rules

31. Indian Power Alcohol Rules

32. IS 875-1964: Codes of practice for structural safety of Building


Page (131)

33. IS 1893-1966: Criteria for earthquake resistant design of structures

34. IS 3306-1965 (Tolerance limits for discharge of Industrial IS 3307-1965 ) effluents

35 The Water Act, 1974 No. 6 1974 - Prevention and Control of Pollution

(Government of India). Government of Gujarat has established a Board "Gujarat Water

Pollution (Prevention and Control)" with a view to enforce the above Act.

36. The Air (Prevention and control of pollution) act 1981.

37. The Air (Prevention and control of pollution ) rules 1982.

38. The environmental protection act 1986.

39. The Air (Prevention and control of pollution amendment) Act 1987

40. The environmental protection rules 1986.

41. Public liability insurance act 1991.

42. Noise pollution (regulation and control) rules 2000.


Page (132)

SECTION -6

TECHNICAL SPECIFICATIONS


Page (133)

6.1 DESIGN PHILOSOPHY

Design philosophy provides a brief over-view of the PROJECT scope and some of its salient

features. Additional information has been provided under clause 6.2 - Detailed Specifications

of 50,000 TPA Poly Aluminum Chloride (18% Al2O3) Solution.

6.1.1 GENERAL

The PLANT design shall incorporate conventional, reliable & proven features with an aim to

minimize the capital cost. The OWNER would, instead of experimenting with unproved novel

process features, prefer to repeat an already operating PLANT based on an energy efficient,

state-of-the-art technology, except for the variations, as may be required on account of change

in feedstock or variations in the site conditions and improvements that may be required.

Consideration shall also be given for stability of operation even at reduced loads, The

CONTRACTOR should base his designs on the OWNER'S requirement to operate the entire

PLANT for minimum 8000 Hours in a year. Ease of start-up and operation shall be the main

consideration while designing the PLANT. The PLANT is to be designed for minimum 20

years of operating life.

6.1.1.1 Location and Meteorological Data:

(a) Location Dahej (non SEZ), TDI -II Site which is 40 Kms from Bharuch.

Bharuch is in Gujarat State and about 4 Km from National

Highway No 8.

(b) Nearest

Rly.Station

Bharuch in Western Railway Baroda-Mumbai Route

(d) Nearest Airport Vadodara which is at a distance of 75 Kms from Bharuch.

(e) Height above

mean Sea level

20.2 Metres Sea level

(f) Variation in

barometric

pressure

1012.3 mbs to 995.2 mbs , 1006 mbs (average)

(g) Maximum temp. Dry Bulb - 48 Deg C

Wet Bulb - 27.8 Deg C

Min. Dry Bulb Temp. 5 Deg C

(h) Relative

Humidity

80% for design

(i) Rain Fall Maximum---65 mm/hr

Annual Avearge-1000mm

Average rainfall—920 mm June to September


Page (134)

(j) Wind data Max. Velocity 44 m/sec as per IS-875 latest Wind direction-as per

Rose Diagram

(k) General climate Hot and Humid

(l) Earth quake Zone As per IS-1893-1984 and Roorkee Earth Quake School Report for

Bharuch

(k) Snowfall/

Frostline

Not Applicable

6.1.1.2 Topography and Soil Conditions:

DELETED

6.1.1.3. Other Details of Soil:

DELETED

6.1.1.4 Design Seismic Co-Efficient:

S.No. Type of Structure Basic Co-

efficient

Importance

factor

Design Co-

efficient for

support

Design Co-

efficient

for

foundation

1. Equipment and Support Stratum

0.108 2 0.216 0.18

2. Ordinary St.(Bldg. RCC) Steel

0.07

0.11

1

1

0.07

0.11

0.07

0.11

3. St.Support for Eccentric Service

R.C.C

Steel

0.07

0.11

1.5

1.5

0.105

0.165

0.105

0.165

4. Small Vessels, Equipment, viz. Pumps,H E Coolers,etc.

0.05 2.0 --- 0.10

Design of all equipment, piping, machines etc. shall incorporate the above conditions and

effectively compensate for them.

It shall be ensured that all equipment used shall be similar to those of which have had a

minimum of three years of successful and , continuous operation in similar service.


Page (135)

Efforts shall be made to standardize all the equipment of the PLANT including the

PACKAGE UNITS, to facilitate the interchangeability of spare parts, maintenance of

equipment, other operation considerations and minimize the number of VENDORS.

The PLANTS shall in all respects conform to International standards (refer to Codes &

Standards and Process Design Philosophy enclosed at Annexure-6.1, with special attention to

safety). Applicable codes and standards and Process Design Philosophy listed in Annexure

6.1 are intended to be OWNER'S minimum quality requirements. However, equivalent codes

and standards in the industry shall be identified in the CONTRACTOR'S bid for OWNER'S

approval.

All liquid and gaseous waste steams shall meet the relevant standards. A zero effluent strategy

is envisaged and PLANT design shall incorporate features (such as neutralization system etc.)

6.1.2 Electrical:

HT Electrical power supply would be made available by OWNER at tie-in point of PAC

Plant. Proper illumination shall be provided to ensure safe operation of the PLANT.

Electrical system shall be designed so as to provide for PLC monitoring & load management

of the PLANT.

An Uninterrupted Power Supply (UPS) system for the instruments & control system shall be

provided for uninterrupted operation and/or safe shutdown of the Plants. For supply of

emergency power all the necessary arrangements will be done by OWNER.

All junction boxes and electrical equipment in the field shall be weather-proof. Electrical

cables shall preferably be over-ground on racks. Detailed Electrical Philosophy/

Specifications are attached at Annexure-6.2.

6.1.3 Instrumentation:

Digital Control System (DCS) of reliable and proven design shall be provided. Some single

loop controllers for critical service shall also be provided.

Besides the normal Operator Consoles, the system shall include temperature indications &

alarm status on separate console, event & trip logging-printing, historical trends etc and an

engineering console for report generation all with proper redundancy.

The PLANT shall be provided with trip circuits and interlocks which shall ensure the

protection and isolation of specific PLANT sections in case of any PLANT upsets. The trip

circuits shall be hard-wired within easy access of the DCS operators. Also PLANT by pass

facility for each trip circuit and interlock shall be provided in the control room for testing or

during PLANT start-up/upsets.

All the critical valves, which shall be opened or closed quickly during start-ups or shut-

downs, shall be equipped with drivers. All the instruments shall be fail-safe in case of power

failure. All control valves shall be fail-safe in case of Instrument Air failure. All solenoids

shall be "de-energize to trip".

All sections of the plants, reactors, towers, heat exchangers etc. shall be provided with

adequate number of indicators on DCS for temperature, pressure, flow, levels etc. All critical


Page (136)

pumps, compressors, etc. shall be provided with speed indications available in the Control

Room.

All junction boxes and instruments in the field shall be weatherproof.

Detailed Instrument Philosophy/Specifications are attached at Annexure-6.3.

6.1.3.1 Instrument-Air System

Instrument-air (I.A) supply for the PLANT shall be available from existing I.A. System of the

TDI-II complex at BL of the PLANT. The required normal and maximum quantity of I. A. is

to be indicated by CONTRACTOR.

The I.A. from existing System would be available at PLANT batter/ limits as per following

quality:

6.1.4 Mechanical

The PLANTS shall in all respects conform to International standards. Applicable codes and

standards listed in Annexure 6.1 are intended to be OWNER'S minimum quality

requirements. Platforms and walkways, stairs and ladders shall be provided in design to

ensure easy and safe access to valves, instrument components, etc.

Detailed Mechanical Design Philosophy / Specifications are enclosed at Annexure 6.4 are

intended to be OWNER'S minimum quality requirements for equipment, machinery, piping,

inspection and the PLANT design. In general, pumps and other rotating equipment, except

major compressors, shall be equipped with stand-by units as specified under 'Drive Pattern' in

Detailed Specifications, Lube-oil coolers and filters shall be provided with 100% standby.

Adequate provisions shall be made for isolation of equipment without causing a shutdown, so

that maintenance or repair work can be carried out on such items, (e.g. block valves on

rotating equipment standby units, block valves and bypass on control valves, etc.). All control

valves on any hazardous fluid shall be provided with double block & bleed system. All

isolation valves for various sections of the plants, process/steam vents, drains, etc. as may be

required during startup/shut-down and during PLANT upsets shall be provided.

6.1.5 De-mineralized Water System:

Demineralised Water (DM Water) supply for the PLANT shall be available from existing DM

Water System of the TDI-II complex at BL of the PLANT. The required normal and

maximum quantity of DM Water is to be indicated by CONTRACTOR.

The DM Water from existing System would be available at PLANT battery limits as per

following quality:

Supply Pressure 8 Bar g

Supply Temp. 40°C

Dew Point -40°C


Page (137)

pH (max/min) 6.8/7.2

Conductivity 0.2 µΩ/cm

Silica 0.02 max ppm

TDS 0.02 ppm

Supply Pressure : 4 Bar a

Supply Temperature: Ambient

6.1.6 Cooling Water System:

Cooling Water supply for the PLANT shall be available from existing CW Water System of

the TDI-II complex at BL of the PLANT. The required normal and maximum quantity of CW

Water is to be indicated by CONTRACTOR.

CONTRACTOR to consider adequate capacity cooling water circulation pumps and spare

pumps for the PLANT in its scope. Following is typical OWNER'S requirement.

Normal Tube Velocity: 1.2 m / s Max. Tube Velocity Limit: 2.0 m / s Typical Analysis of

Cooling Water.

6.1.7 Chilled Water System:

Chilled Water supply for the PLANT shall be available from existing CW Water System of

the TDI-II complex at BL of the PLANT. The required normal and maximum quantity of CW

Water is to be indicated by CONTRACTOR.

The Chilled Water from existing System would be available at PLANT battery limits as per

following quality:

Supply Pressure : 5 bar a

Return Pressure: 3 bar a

Supply Temperature: 33°C

Return Temperature: 41°C

pH 7.5 Conductivity 500 µΩ/cm

Silica 20 ppm Chloride 30 ppm

Free Chlorine 0.5 ppm Alkalinity 70 ppm

Calcium 200 ppm

Stability Index 7.22


Page (138)

Supply Pressure : 5 bar a

Return Pressure: 3 bar a

Supply Temperature from

chilled water unit:

7°C

Temperature at battery limit

of the plant:

8°C

Return Temperature from

the plant:

13°C

Temperature at chilled

water unit:

14°C

6.1.8 Steam System:

Steam shall be supplied by OWNER at Battery limit of PAC PLANT. The existing steam system

of the TDI-II plant is as under:

SHP steam 36 bar a

SMP-I steam 18 bar a

SMP-II steam 10 bar a

SLP steam 5.3 bar a

CONTRACTOR will make necessary arrangements to adjust the pressure/ temperature to meet

his requirements. The required normal and maximum quantity of steam is to be indicated by

CONTRACTOR.

6.1.8 Natural Gas:

Natural Gas shall be supplied by OWNER at Battery limit of PAC PLANT at following

conditions:

Sr.

No.

Components Range (Mole%)

1 Methane C1 84.5 - 98.77

2 Ethane C2 0.69 – 9.00

3 Propane C3 0.03 – 3.00

4 Butane C4 0 – 2.00

5 Pentane C5 0 - 0.25


Page (139)

6 Hexane C6 0

7 Heptane C7 0

8 Carbon Dioxide

CO2 0

9 Nitrogen N2 0.51 - 1.25

100%

6.1.9 Plant Air System.

PLANT air (oil-free) system of adequate capacity for the PLANT'S maintenance and other needs shall be

provided by OWNER from existing facilities and would be available at PLANT battery limits.

Process (Plant) Air

Distribution network and utility points (stations) within the PLANT shall be in the scope of the

CONTRACTOR. Normal and maximum quantity of Plant Air required for the PLANT should

be indicated by the CONTRACTOR.

6.1.10 Inert Gas (Nitrogen) System:

LP Nitrogen shall be available as inert gas at the PLANT battery limit from existing facilities.

Quality of the inert gas would be:

Nitrogen Supply Data:

NHP Supply Pressure : 15 bar a

NLP Supply Pressure : 7 bar a

Normal and maximum quantity of inert gas required for the PLANT should be indicated by

the CONTRACTOR.

Supply Pressure 9.09 Bar g

Supply Temperature 40°C

Quantity Requirement to be indicated

by the BIDDER /

CONTRACTOR.


Page (140)

Distribution system with service points within the PLANT shall be in the scope of the

CONTRACTOR.

6.1.10 Noise Level Limits:

Compressor, process and other vents shall be provided with silencers.

Recommended limits for noise exposure shall be as follows:

dBA Slow Meter Response

Duration of Daily Exposure (Hr.)

90 8

92 6

95 4

97 3 100 2

6.1.10.1 Equipment Noise Level Limits

Equipment noise level shall not exceed the limits as specified below.

In case of package units, each equipment shall comply with the above limits.

6.1.11 Communications System:

Communication system is required within PLANT. This would be the responsibility of the

CONTRACTOR.

Equipment Noise Limit (dBA)

Location

Blower 88 1 m from the casing

Pump 88 1 m from the casing

Motor 88 1 m from the casing

Mixer 88 1 m from the casing

Control Valve 91 1 m downstream of the valve & 1m from pipe

Vent Silence Location

91 Nearest platform or worker exposure location

Piping System Location

88 Nearest platform or worker exposure location


Page (141)

6.1.12 Lettering And Marking

Lettering & marking of equipment, control valves etc and colour codes/bands of all pipelines

shall conform to the International codes & standards.

Instrument air, PLANT air and inert gas pipelines shall be identified by different colours and

fully painted. Fire fighting water lines shall be fully painted in red colour.

Direction of flow in the pipelines shall be identified by an arrow.

At battery limit of each unit, name plate shall be fixed on each pipe on the rack showing fluid

name and its direction.

A Mounted metal plate at the front of the local switches of motors must be provided showing

running/stop positions.

6.1.13 Construction

CONTRACTOR shall be responsible for all Civil and Structural work, foundations, insulating

and painting works, Erection, site fabrication, piping, instrumentation, electrical installation,

and other miscellaneous construction jobs of the PLANT leading to acceptance of the

PLANT. CONTRACTOR shall organize these activities in appropriate sequence and use

proper methods giving due regard to the requirements of safety, quality, sound engineering

practice, compliance with relevant codes and regulations, and for achieving acceptance of

PLANT.

Detailed specifications (philosophy) for Civil and Structural work, foundations, painting etc.

are attached at Annexure-6.5.

6.2 DETAILED SPECIFICATIONS OF PLANT

Battery Limit PLANT is defined as the boundaries of the PLANT where supply of raw

materials, utilities & other inputs for the PLANT would be made available and where

CONTRACTOR shall deliver products & other outputs from the PLANT and are identified as

follows:

6.2.1 Inputs:

a. HCl delivered at tie –in point. Transfer pump and related instruments for two

storage tanks will be in the scope of CONTRACTOR.

b. Alumina shall be supplied as free flowing powder in bags at Raw material silo,

which shall be of minimum 1000 Sq.M capacity.

c. Utilities like Natural Gas, Power, Steam, Process Water, DM Water, Cooling

Water, Chilled Water, Drinking water, Nitrogen, instrument air, Plant air etc

deliverd at tie-in points.


Page (142)

d. All inter connection of process pipes within each section of the PLANT and

between different PLANT sections shall be inside Battery Limits.

e. Electrical power shall be delivered at tie-in points as HT power.

6.2.2 Outputs:

a. PAC PLANT shall be designed as a stream of product line which shall consist

of three Reactors each of 16KL capacity, conveyor system for charging

Alumina, crude PAC cooler and crude PAC storage tank.

b. Main product of PAC PLANT shall be PAC 18 in liquid and PAC 30 in powder

form as described at clause 6.2.4. However CONTRACTOR shall also include

facility for producing and storing other grades of PAC i.e PAC 10 for 20% of

total capacity and sulfated PAC for 10% of total capacity.

c. Product PAC solution shall be routed to Storage tanks. (6 x 200 Cu.Mtr.

capacity). Two additional storage tanks ( 2 x 100 Cu. Mtr.) for other grades.

d. PAC loading facility to road tanker (30 Cu.Mtr / Hr) – 02 Nos. Station will be in

the scope of CONTRACTOR. Maximum tanker size will be 25 MT.

e. PAC loading facility to Car buoy filling station – 01 Stations, each capable of

filling 80 Car buoys of 50 Kgs capacity per hour, will be in the scope of

CONTRACTOR.

f. PAC drying unit to be designed for 100% capacity.

g. PAC Powder shall be routed to a product silo which shall be of minimum 2500

Sq.M capacity

h. Product shall be diverted to powder filling station – 02 stations each with

capacity of 400 Bags per hour filling.

i. Return steam condensate, process condensate, return cooling water, chilled

water to be delivered at tie-in point

j. Treated effluents:

Liquids: for disposal/discharge to central effluent plant through pipe one meter

away from the PLANT limits.

Gases: at outlet of appropriate stacks.

Solid: Solid Sludge at outlet of filter press bottom.

The scope along with broad general specifications are given in the following clauses.

6.2.3 Scope of PLANT

The PLANT shall be designed on the basis of latest and energy efficient and environment

friendly route.


Page (143)

6.2.3.1 Design Capacity

PLANT shall be designed for net production of 50,000 MTPA (18% Al2O3) Solution.

PAC drying unit shall be designed for 100% capacity.

The PLANT shall be laid out in single stream with adequate stand-by equipment to maintain

steady operation for minimum of 8000 stream hours per annum. The proposal shall indicate

possible period of maintenance that would be necessary in view of mandatory

inspection/maintenance of equipment.

The PLANT is to be design to have the capacity higher by minimum 10% of the guaranteed

capacity.

Critical equipment like Reactor, exchangers etc. should be designed to have at least 15%

higher capacity.

The PLANT design shall incorporate safety features to ensure that during normal or

emergency shutdown conditions, the safety of the personnel, machines, equipment are not

jeopardized.

The proposal shall also quantify the import/export of all utilities specifying their temperature

& pressure conditions etc.

6.2.4 Specification of products

6.2.4.1 PAC Solution

Properties Unit Specifications

Poly Aluminum Chloride concentration(w/w) % min. 18 +/- 0.5

Al2O3(Alumina) % 17.5 ± 0.5

Chlorides % weight 19 -23

Basicity % 38 – 45

pH 0.2 – 0.6

Appearance Yellow liquid

Typical values

Density (20°C) gm/lt 1.35 – 1.39

Viscosity (20 °C) CPS 40 – 80

Freezing point °C -20 ± 2

Stability months 5 to 6


Page (144)

6.2.4.1 PAC Powder (30%)

Properties Unit Specifications

Characteristics PAC 30 Solid PAC Powder, Hygroscopic Powder

Solid Content % weight Min. 30% Al2 O3 + Max 34% Chlorides

Volatiles in Powder (24 Hours, 1050C)

% weight 9% +/- 1% Moisture

Particle Size (Sieve)

200 Micron Avg., but should not be less than 30 microns.

>200 Microns, Max 36.5%

200-160 Micron, Max 25.2 %

160-64 Micron, Max 38.8%

<64 Micron, Max 7.3%

Temperature (0 C) Max. 40 Bulk Density Kg/m3 Approx. 780

Product quality of liquid PAC shall confirm to standard IS15573 and powder PAC to standard EN883.

6.2.5 Feed Specification

The PLANT shall be designed to operate with HCl liquid and Alumina of the quality given

below to be used as feedstock.

Alumina specification

Formula Al2O3.3H2O

Molecular weight 156.01

Appearance Free-flowing powder

Loose bulk density 1200 – 1300 Kg/m3

Specific gravity 2420 kg/m3

Characteristics Unit Specifications

Al2O3 %wt/wt 64

Crystallization water %wt/wt 33.93

Moisture %wt/wt 1.74

Impurities %wt/wt 0.33


Page (145)

Particle size analysis:

% on 100 mesh 1 – 10

% on 200 mesh 65 – 90

% on 325 mesh 92 – 99 (88 min)

Hydrochloric acid specification

Formula HCl

Molecular weight 36.46

Appearance Liquid

Parameter Unit Value

HCl %by Vol 99.81

CO2 %by Vol 0.19

CO ppm 10 max

ODCB (Ortho Di Chloro Benzene) ppm 2.5 max

COCl2 ppm 2.5 max

Above specification of HCl are for gaseous state generated as byproduct from TDI-II plant of GNFC.

However same will be converted into liquid solution of 32% concentration by dilution with water.

The PLANT shall incorporate commercially proven advances in technology available and shall be

designed to work continuously under the climatic conditions prevailing at the proposed location. The

process given in the proposal should have been proven in operating plants of capacity minimum 50,000

TPA for at least 3 years.

6.2.6 Drive Pattern

The process design shall ensure that the PLANT shall go to safe shutdown in case of a power interruption. Steam condenser design vacuum shall be minimum 0.14 Bar (abs) and temperature maximum 52 deg C.

All small pumps, blowers, compressors shall be 1 + 1 motor driven, i.e., one normal running and one stand-by shall both be motor driven.

The CONTRACTOR may select drive as per his own energy optimization requirements:

6.2.7 PLANT Location

6.2.7.1 The PLANT would be located at existing site of OWNER at Dahej, in Bharuch District, Gujarat,

India. Drawing No. SLD-02 Rev.R3 is enclosed with proposed site for PAC PLANT marked in red.


Page (146)

6.2.7.2 All the tie-in points for utilities are approximately at about 500 Meter from the proposed location. CONTRACTOR shall consider this as basis for OSBL piping. However some variation shall be accommodated in BID.

6.2.7.3 The CONTRACTOR proposal shall indicate the area required and furnish the detailed plot plan of the PLANT.

6.2.7.4 OWNER has future plan to add capacity of PAC PLANT by by another 50,000 MTPA based on available HCl from TDI-II plant and depending on market scenario. Hence CONTRACTOR to keep necessary provision for future expansion of PAC PLANT and design the layout and other facilities accordingly.

6.2.8 Effluent Specification

OWNER is an ISO-14001 accredited Company. CONTRACTOR to comply with ISO-14001

requirements. OWNER'S Environment policy is enclosed as attachment for CONTRACTOR'S

ready reference.

CONTRACTOR shall design the PLANT keeping in the mind following:

Minimum generation of pollutants

Recycle / Reuse the effluents stream to the extent possible.

Discharge of effluent stream to meet statutory regulations

Norms -of -Effluent discharge at battery limit shall be

i). In accordance to the Norms OF GUJARAT POLLUTION CONTROL BOARD,

Gandhinagar, Gujarat.

LIQUID EFFLUENT

PARAMETERS PERMISSIBLE LIMITS

pH 6.5 to 8.5 Temperature Degree C 40 Suspended Solids Mg/Lt. 100 Colour Units 100 Oil & Grease Mg/Lt. 10 Phenolic Compounds Mg/Lt. 1 Cyanides as CN Mg/Lt. 0.2 Fluorides as F Mg/Lt. 2 Sulphides as S Mg/Lt. 2 Phosphate as P Mg/Lt. 5 Ammonical Nitrogen as NH3 Mg/Lt. 50 Arsenic as As Mg/Lt. 0.2 Total Chromium as Cr Mg/Lt. 2 Hexavalent Chromium Mg/Lt. 0.1 Copper Mg/Lt. 3


Page (147)

Lead Mg/Lt. 0.1 Mercury Mg/Lt. 0.01 Nickel Mg/Lt. 3 Zinc Mg/Lt. 5 BOD (5 days, 20 Deg C) Mg/Lt. 30 COD Mg/Lt. 100 Chlorides Mg/Lt. 600 Sulphates Mg/Lt. 1000 TDS Mg/Lt. 2100 Percent Sodium % 60 Insecticides/Pesticides Absent Total Kjedahal Nitrogen Mg/Lt. 100 Nitrate Nitrogen Mg/Lt. 10 Vanadium Mg/Lt. 0.2 Bio-Assay Test 90% survival of fish after 96 hours in 100% effluent) Chlorine Mg/Lt. 1 Free Ammonia Mg/Lt. 4.5 Selenium Mg/Lt. 0.5 Borax Mg/Lt. 2 Barium Mg/Lt. 1 Radioactive Emitters

- Alpha Emitters 10^-7 - Beta Emitters 10^-6

ii). The flue gas emission through vent emission shall conform to the following

standards:

PARAMETERS PERMISSIBLE LIMIT

Particulate Matters (SPM) 150 mg/NM3 SOx 100 ppm NOx 50 ppm (vol.) NH3 175 mg/NM3 CO 150 mg/NM3 Formic Acid 25 mg/NM3 Hydrocarbon 15 mg/NM3 HF 06 mg/NM3 Cl2 09 mg/NM3 HCl 20 mg/NM3 Acetic acid 75 mg/NM3 Phosphorous Pentoxide 05 mg/NM3 HNO3 Vapour 15 mg/NM3 Fluorine 0.5 mg/NM3 H2S 45 mg/NM3 Iodine 02 ppm


Page (148)

Ambient air quality requirements (within the premises):

Particulate Matters (SPM) Microgram/M3 500 Sox Microgram/M3 120 NOx Microgram/M3 120 NH3 Microgram/M3 850 HF Microgram/M3 60 CI2 Microgram/M3 100 HCI Microgram/M3 200 CO Microgram/M3 5000 Fluorine Microgram/M3 5 P205 Fumes Microgram/M3 30 H2S Microgram/M3 500 CS2 Microgram/M3 2000 Hydrocarbon Microgram/M3 160

Liquid Effluent:

Stream wise volume and quality of liquid effluent (Domestic & Industrial) from battery limit

of the plant is to be specified and to be furnished in Technical proposal.

Gaseous Effluent:

Stream wise volume and quality of gaseous effluent from the battery limit of the plant to be specified to be furnished in Technical proposal.

Solid Waste:

The quantity and quality of solid waste from the battery limit is to be specified. It is also to be specified the category of hazardous waste mentioning main hazard.