MANGANESE ORE (INDIA) LIMITED
I N D E X
CHAPTER CONTENTS PAGE
I ORGANISATION 6
II OBJECTIVE & PURCHASE POLICIES 7
Advertised Tenders, Limited Tenders,
Limited Tenders for Safety Items, Single
Tender, Operating of Rate Contracts, Repeat
Orders, Commodities with Administered
price, Committee Purchase, Emergency
Purchase, Purchase of Sundry Items,
Spot Purchase/Cash Purchase
III DELEGATION OF POWERS 14
IV REGISTRATION OF SUPPLIERS 15
Registration of Suppliers for Safety
Items, Constitution of Inspection Team,
Procedure of Registration for all items,
De-registration, Vendor Rating, Penal
Action against Suppliers - Suspension
and Banning of Business.
V INDENTING PROCEDURE P & M 28
New/Addition Requirement, Replacement
Requirement, Flow of Indents, Normal
checks in processing Indents, Advance
Action for procurement.
VI TENDER ENQUIRY 32
Preparation of Tender Enquiry, Price Variation Clause,
Two Part/Three Part,Tendering, Earnest Money/
Security Money, Performance Bank Guarantee,
Deviations, Submission of Tenders, Cost of Tender
Papers, Free Supply of Tender Papers,
Extension of Due Date of Tenders,
Receipt of Tender, Delayed / Late Tender,
Opening of Tenders one cover system,
two/three cover system. Certain vital conditions for NIT.
CHAPTER CONTENTS PAGE
VII ANALYSIS OF OFFERS, PLACEMENT OF 45
ORDERS AND COMPLETION OF SUPPLY
Comparative Statement for One/Two Cover System
Methods for arriving at the evaluated
price, Scrapping of Tender and issue of Fresh
Enquiry, Finalization of Purchase Proposals
Constitution of Tender Committee, Technical
Evaluation of Bids, Duties & Responsibilities
of Tender Committee, Evaluation Report,Types
of Contracts fixed quantity contract, rate
contract, running contract, contents of supply
order, completion of contract, short supply,
amendments, procedure for extension of delivery
period, extension of delivery date in contracts
containing price variation clause, cancellation
of supply order, price increase without consulting
finance, risk purchase, negotiation and distribu-
tion of orders, qualification criteria for items
other than Explosives, Purchase preference for
PSUs, Trial/Development order, procurement
From Ancillary Units, Inspection Criteria,
Third Party Inspection, Inspection of Safety
VIII PROGRESS & FOLLOW UP 64
IX PAYMENT TO THE SUPPLIERS 65
Payment for Trial Orders.
Payment through Bank.
X Tender System of Purchase and the laws 67
attracted by the resultant contracts
XI AMENDMENTS & CHANGES IN THE 81
MANUAL & Flow chart detailing the
approving authority itemwise
Annexure-I Form of application for enlistment as approved supplier 83
Annexure-II A Indent for Capital Item 87
Annexure-II B Indent for Revenue Items 88
Annexure III General Terms and Conditions of Tender Enquiry 90
Annexure-IV Integrity Pact 119
P R E A M B L E
To promote excellence in Materials Management towards national
prosperity through sustainable development.
Code of Ethics
As a guiding principle of professional conduct, all purchase and other executives of
Manganese Ore (India) Limited will abide by the following codes of ethics:
To consider first the total interest of Maganese Ore (India) Limited in all transactions
without impairing the dignity and responsibility of ones office.
To provide level playing field to all bidders/contenders.
To buy without prejudice seeking to obtain the optimum bargain in all transactions.
To subscribe and work for honesty and truth in buying to denounce all forms and
manifestations of commercial malpractices and eschew anti-social practices.
To accord a prompt and courteous reception so far as conditions will permit, to all who
call up on legitimate business mission.
To respect ones obligations and those of ones organization consistent with good
To promote a healthy and harmonious buyer seller relationship.
APPLICABILITY OF PURCHASE MANUAL
This Manual is a guideline and all purchases are to be regulated as per procedure laid
down therein. However, in some specific cases, it may become necessary to arrange
materials by adopting methods not indicated in the manual. In such case, specific
approval of Chairman cum Managing Director of Manganese Ore (India) Limited,
hereinafter referred as CMD of MOIL will have to be obtained before initiating such
action, detailing the reasons as to why procurement becomes necessary not as per the
guidelines of the Purchase Manual.
O R G A N I S A T I O N
1.1 Manganese Ore(India) Limited is a Government Undertaking under the Ministry of Steel,Government of India.The company has Board of Directors
headed by Chairman cum Managing Director.
Background of the company
Manganese Ore (India) Limited (MOIL) a Miniratna PSU was originally
set up in the year 1896 as Central Province Prospecting Syndicate which was
later renamed as Central Provinces Manganese Ore Company Limited
(CPMO), a British Company incorporated in the UK. In 1962, as a result of
an agreement between the Government of India and CPMO, the assets of the
latter were taken over by the Government and MOIL was formed with 51%
capital held between the Govt. of India and the State Governments of
Maharashtra and Madhya Pradesh and the balance 49% by CPMO. It was in
1977, the balance 49% shareholding was acquired from CPMO and MOIL
became a 100% Government Company under the administrative control of
the Ministry of Steel.
At present, MOIL operates 10 mines six located in the Nagpur and
Bhandara districts of Maharashtra and four in the Balaghat district of Madhya
Pradesh. All these mines are about a century old. Excepting