RATE CONTRACT. BY SPEED/REGISTERED POST M/s Waidhan Engineering & Industries Pvt. Limited, Plot No. 54 &56

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1 (UNDER JURISDICTION OF SINGRAULI COURT ONLY) RATE CONTRACT Ref. No /415A1058 Date: 7 th April 2016 To BY SPEED/REGISTERED POST M/s Waidhan Engineering & Industries Pvt. Limited, Plot No. 54 &56 Udyog Deep Industrial Estate V. Code: W0003 P.O. Waidhan Distt Singrauli FAX No.: Sub: Rate Contract for re-treading of OTR Tyres. Ref: i) Our E-Tender No. NCL/SGR/MMD/OPEN/15-16/ 415A1058/44 dated , Techno-commercial Bid opened on & Price Bid opened on , for conclusion of Rate Contracts for retreading of OTR Tyres. ii) Your Offer No. WEI: :134 dated iii) Your letter no. WEI: :242 dated iii) Your Letter No. WEI: :266 dated iv) Your Letter No. WEI: :277 dated Dear Sirs, With reference to the above, we are pleased to enter into a Rate Contract with you for retreading of OTR Tyres of various Projects of Northern Coalfields Limited situated in the state of Madhya Pradesh and Uttar Pradesh as per details given in Annexure I and in accordance with the price, terms & conditions detailed hereunder: Sl.No. Size of OTR Tyre for Retreading Basic re-treading rate per Tyre (Rs.) For MP Projects For UP Projects X49-48PR/24.00R49, TRA Code- E X25-32PR, TRA Code- E X25-12PR, TRA Code- E BASIS OF PRICE:- The prices are inclusive of Packing, Forwarding, To and Fro Freight and Transit Risk Insurance charges etc. on FOR Destination basis and shall remain firm till execution of Work Orders placed against the Rate contract.

2 2. SALES TAX:- (i) For MP Fields: VAT to be paid extra at actuals as applicable at the time of supply, which is presently 5% on 60% of Basic Rate (applicable for MP Project). (ii) For UP Fields: Concessional CST shall be payable extra at actuals as applicable at the time of supply which is presently 2% on 60% of Basic Rate (applicable for UP Project) against form C. For availing concessional rate of Sales Tax, requisite Sales Tax declaration form will be furnished by the Consignee. (iii) You shall have to submit CST/VATABLE INVOICE, accordingly for availing input VAT credit by NCL 3. SERVICE TAX: Shall be payable extra at actuals as applicable at the time of supply which is presently % on 40% of Basic Rate. You have to submit Service Tax Invoice in prescribed format as per 4(A) of Service Tax Rule 1994 for availing input Tax credit by NCL Note:- However, if there be any statutory increase in the rate of Taxes & Duties during the extended Delivery period, NCL shall not pay the increase in the Taxes & Duties and shall be borne by you. In case there is any decrease, the same shall be passed on to NCL. 04. SECURITY DEPOSIT:- You are advised to deposit Security Money for Rs. 28,00, (Rupees Twenty Eight Lakh Eight Hundred Twenty only) in the form of Bank Draft drawn in favour of Northern Coalfields Limited payable at SBI, Morwa Branch (Code: 3767), Singrauli (MP) or at any Scheduled Bank/Nationalised Bank located at MORWA, Singrauli (MP), or in the form of Bank Guarantee of any Scheduled Bank/ Nationalized Bank in the prescribed format (Annexure-J) of NIT within 15 days from the date of issue of Rate Contract. The Bank Guarantee shall remain valid for 27 months from the date of issue of this Rate Contract. The Security Deposit will be released after successful execution of Supply Orders placed by DDOs against this Rate Contract. 05. DURATION OF CONTRACT:- The Rate Contract will remain valid for a period of two years from the date of its issue. 06. PRICE CERTIFICATE:- You are required to submit following certificate along with your bill(s) : The prices charged by us under this bill is the lowest price and is the same as applicable to DGS&D/ other Govt. Depts./ other PSUs including CIL & its Subsidiaries /other Organizations and are not higher than the rates quoted/charged by us for retreading of the same item(s) to other customers. 07. RATE CONTRACT:- The quantity of retreading of OTR Tyres during the currency of the Rate Contract is not fixed and the same will be drawn by the DDO's based on their actual requirement from time to time on as and when required basis. Page 2

3 08. PACKING:-Packing of all the materials shall conform to the requirements of the carrier. Proper care should be taken during transportation as per standard trade practices to withstand rigors of transport to prevent any loss/damage/pilferage of the contents in transit. 09. DELIVERY PERIOD:- Within 45 days from the date of collection of tyres from the consignee. The consignees shall inform the Retreader for carrying out Joint Inspection of Retreadable tyres within 15 days of issuance of work order and the Tyres must be collected by the Retreader within 15 days from the date of joint inspection. The above delivery period is with the consideration that date of receipt of material at the destination shall be considered as date of receipt. 10. DIRECT DEMANDING OFFICERS & PAYING AUTHORITY:- This Rate Contract will be operated by the Direct Demanding Officers and payment to be made by the Paying Authority of the concerned consignee/ddo, as per the details given in Annexure- II. 11. COLLECTION OF TYRES FOR RETREADING: On receipt of work order from Direct Demanding Officer, it will be your responsibility to collect the Tyres for retreading 12. MODE OF DISPATCH / TRANSPORTATION:- The material will be delivered by Road Transport only. To and Fro transportation will be borne by you. Loading/Unloading at project sites will be arranged by NCL and at your site by you at your own cost. Necessary Way Bill(s), if required, should be obtained from the respective Consignees situated in the State of UP. 13. GUARANTY:- (i) Retreaded tyres shall be guaranteed for a minimum period of 2000 working hours for OTR Tyre Size 24.00X49-48PR / 24.00R49, TRA code-e4 and minimum period of 1500 working hours for OTR Tyre Size 18.00X25-32PR & 18.00X25-12PR. The following shall be considered as retreading failure : A) Separation of tread from casing. B) Bulging of tread In case of premature failure on account of retreader, the following procedure shall be adopted for calculation of compensation amount which has to be recovered from you. The deduction can be made by deducting equivalent amount from your pending / future bills / Security money or by recovering the same amount from you. (a) In case the retreaded tyre achieves less than 60 % of Guaranteed life, the full amount paid for retreading of said tyre shall be recovered from you. (b)in case the retreaded tyre covers 60 % or more of Guaranteed life, the compensation amount which is to be recovered from you shall be calculated on pro-rata basis as per formula given below. Page 3

4 Compensation amount = (A - B) / A X C Where A = Guaranteed Life B = Life covered / achieved by the retreaded tyre C = Amount incurred for retreading of said tyre (iii)premature failure of the retreaded tyres shall be decided on the basis of Joint Inspection of the failed tyre to be held between the representative of S O (Excv) of the project and your representative. The Joint Inspection report should be countersigned by S.O (Excv) of the project. (iv)to & fro transport charges of tyres, failed under warranty shall be arranged by you at your own cost. (v) Inspection of premature failed tyres shall be done immediately within 30 days of receipt of the intimation from the respective project. (vi) It will also be your responsibility to lift only those tyres which are free from through cuts and free from casing damage. Failure of retreaded tyres attributed to casing damage shall also be considered as retreading failure. In the event of a tyre with a through cut being collected by the contractor, under this contract, no payments towards repair of through cuts shall be made. (vii) You shall be required to arrange for inspection of tyres before collection for retreading in the presence of authorised representative of the Depot officer/ Consignee of the project. Inspection of retreadable tyres shall be done immediately within 15 days of receipt of the intimation from the Depot Officer/ consignee of the respective project. (viii) Warranty replacement should be completed within a reasonable period maximum within one month from the date of claim free of cost up to ultimate Consignee s end. All cases of warranty replacements will be decided on the basis of joint inspection of the failed goods held between the NCL representative and your representative. 14. INSPECTION:-It will be your responsibility to inspect the Tyres before collection of tyres from the consignee. Only those tyres which are free from through cuts and free from casing damages should be collected. The failure of tyres due to above points will be regarded as retreading failures. In the event that a tyre with a through cut has been collected by the Contractor, no payment of any type shall be made. Final inspection of retreaded Tyres shall be carried out by authorized representative of GM(Excv.), NCL after receipt of retreaded Tyres at Consignee s end. 15. PAYMENT TERMS:-100% payment shall be released within 21 days of receipt and acceptance of materials at site by the consignee or submission of bills complete in all respects, whichever is later. The payment shall be made by Electronic Fund Transfer (EFT) or e-payment. You are requested to indicate EFT No. and other relevant details in your bill(s). All payments (in Indian Rupees) will be made by the concerned Paying Authority of NCL. Page 4

5 16. BANKER S NAME AND ACCOUNT NO:- a. Account Name: - Waidhan Engineering & Industries Pvt. Ltd. b. Banker s Name:- State Bank of India c. Branch:- Waidhan Branch d. Account Type: Cash Credit Account e. Account No: f. IFSC Code:- SBIN SUBMISSION OF BILLS:- 100% bill in triplicate duly pre-receipted on a revenue stamp, along with Guarantee Certificate & Price Certificate should be submitted to the Paying Authority. A copy of the bill should be submitted to the Consignee. You shall raise bill indicating Material Cost and corresponding Sales Tax / VAT amount thereon and cost towards Service Component and corresponding Service Tax thereon. A. Following documents may be submitted to the Consignee: i) Consignment Note. ii) Delivery Challan in original. iii) One copy of the bill. iv) Warranty/Guarantee Certificate/Inspection Report wherever required. v) Price Fall Clause Certificate. vi) Any other documents specified in the R/C. B. Following documents should be submitted to the Paying Authority: i) 100% bill in triplicate duly pre-receipted and stamped. ii) Copy of the consignment Note Warranty/Guarantee Certificate/ Copy of the Inspection Note wherever required. iii) Lowest Price Certificate. iv) Price Fall Clause Certificate. v) Any other documents specified in the R/C. 18. INDEMNITY BOND:- You shall have to indemnify NCL for the full approximated offtake value i.e Rs. 2,80,08, (Rupees Two Crore Eighty Lakhs Eight Thousand One Hundred Ninety Two Only) for any loss or damage to Tyres in course of transit or while in your custody as per Annexure P of NIT. 19. DELAYED DELIVERY AND LIQUIDATED DAMAGES:- In the event of failure to deliver the retreaded tyres within the stipulated date/period in accordance with the specifications mentioned in the Rate Contract/ Work Order and in the event of breach of any of the terms and conditions mentioned in the Rate Contract/ Work Order, NCL shall have the right:- a) To recover from you, as agreed liquidated damages a sum not less than 0.5% (half percent) of the price of any store which you have not been able to supply as aforesaid for each week or part of a week during which the delivery of such stores may be in arrears limited to 10% (ten percent). Where felt necessary, the limit of 10% can be increased to 15% at the discretion of Head of Material Management Division of NCL. Page 5

6 b) To retread the tyres elsewhere after due notice to you on your account and risk, the stores not supplied or others of a similar description without cancelling the supply order in respect of consignment not yet due for supply. OR c) To cancel the Rate Contract/ Work Order or a portion thereof and if so desired to retread the Tyres at your risk and cost and also - d) To extend the period of delivery with or without penalty as may be considered fit and proper. The penalty, if imposed shall not be more than the agreed liquidated damages referred to in clause (a) above. e) To forfeit the Security Deposit full or in part. f) Whenever, under this contract, a sum of money is recoverable from and payable by you, NCL shall be entitled to recover such sum by appropriating in part or in whole by deducting any sum or which at any time thereafter may become due to you in this or any contract should this sum be not sufficient to cover the full amount recoverable, you shall pay NCL on demand the remaining balance. You shall not be entitled to any gain on any such purchase. 20. PRICE FALL CLAUSE:- The price charged for the stores supplied against this Rate Contract shall in no event exceed the lowest price at which you sell or offer to sell the stores of identical description to any other party during the said period. If you at any time during the period of Supply Order(s) placed by DDOs against this Rate Contract reduce the sale price, sell or offer to sell such stores to any other organization at a price lower than the price chargeable under the contract, you shall forthwith notify such reduction of sale prices to NCL and the price payable under this contract for the stores supplied after the date of coming in force of such reduction in sale price, shall stand correspondingly reduced. 21. STATEMENT OF THE ORDER RECEIVED AND MATERIAL SUPPLIED:- It will be your responsibility to submit monthly report indicating number of Tyres received with date of receipt, numbers of Tyres retreaded with date of delivery, number of premature failed Tyres (as reported by Projects of NCL), Joint Inspection Report, status of claim settlement/pending. 22. The Tyres for retreading will be given by the Depot Officer, Regional Stores of the Concerned Projects of NCL against specific Work Order. 23. RISK PURCHASE:- In the event of your failure to deliver the retreaded Tyres within the stipulated date/period of the Rate Contract/ Work Order, or in the event of breach of any of the terms and conditions mentioned in the Rate Contract/Work Order, NCL has the right to retread the Tyres from elsewhere after due notice to you at your risk and cost. In the event of your failure as detailed above, the cost as per risk purchase exercise may be recovered from your bills against any other retreading pending in NCL and also in any other Subsidiary companies/coal India Ltd. 24. JURISDICTION OF COURT:- Any dispute arising out of this Rate Contract will be subject to the Jurisdiction of Singrauli Court (M.P) only. Page 6

7 This Rate Contract is the sole repository of the Northern Coalfields Limited and shall also be governed by all the provisions of CIL Purchase Manual (with latest addendum/amendments) as well as the "General Terms and Conditions of Supply of Stores " issued along with our NIT as Annexure-F unless otherwise stipulated in this Rate Contact. The Rate Contract is concluded with this acceptance. We enclose two copies of the Rate Contract, one of which should be returned to us within 15 days duly stamped and signed by you as a token of acceptance of this Rate Contract, or else it will be construed that you have accepted the Rate Contract. This issues with the approval of competent authority. Encl:- Annexure-I : Technical Details Annexure-II : List of DDOs and Paying Authority. Annexure III- Project Wise Offtake Value Annexure IV: Integrity Pact. Yours faithfully, (A. K. Giri) Asst. Manager (X/MM) (M. A. Siddiqui) Chief Manager (MM) Copy to:- The Chief Vigilance Officer, NCL, Singrauli. The General Manager (Finance.), NCL, Singrauli. The General Manager (Excv.), NCL, Singrauli. The General Manager (Stores), NCL, Singrauli. The Progress Cell, NCL, Singrauli The General Manager (MM), CCL/BCCL/ ECL/SECL/ WCL/ MCL/ NEC/ CMPDIL, Ranchi Sri Sewa Ram, IAS (Retd.), 660, Sector 26, Panchkula, Haryana Sri J.K. Khanna, IPS (Retd.), A-102, Sector - 55, Noida The General Manager/Staff Officer (MM)/Staff Officer (Excv)/Area Finance Manager, Nigahi/ Jayant/ Amlohri/Jhingurda/ Block B /Bina/Kakri/Khadia/Dudhichua/K Shilla:- The work order against this Rate Contract should be restricted to the extent within the following percentage of total off-take of the respective projects as indicated in Annexure-III. Sl. No. Size of Tyres to be retreaded Percentage of Total offtake of respective projects X49-48PR/24.00R49, TRA Code- E4 60% X25-32PR, TRA Code- E4 40% X25-12PR, TRA Code- E3 40% Asst Manager (X/MM), NCL, Singrauli Chief Manager (MM), NCL, Singrauli Page 7

8 NORTHERN COALFIELDS LIMITED MM DEPT: SINGRAULI Annexure-I Technical Details of Tyres for Retreading: A. The specifications of re-treaded tyre shall be as under l No Tyre Size Overall Dia in mm Overall Width in mm Tread Depth in mm Minimum guaranteed Life(W/Hrs) 1 Rock Duty, Cut Resistant, Off- The Road, Tubeless Tyre 24.00X49-48PR / 24.00R49,TRA code-e4 application:dumper Bias Radial Bias Radial (Bias) 59(Radial) do X25-32PR Bias,TRA code-e4. Application:Water sprinkler 3 --do X25-12PR Bias,TRA code-e3 Application: Motor grader (The above dimensions are of inflated tyre in mm and tread depth as per BS) B. Tread Type- Rock Deep Tread, E3 & E4, Cut -Resistant. C. The make of tyres available for retreading are : 1. Bridgestone 2. Good Year India 3. Nippon Good Year 4. Michelin 5. Yokohama 6. MRF 7. Some other make may also be included based on future supplies. D. The retreading process should be, Non-directional pattern mould except for tyre size 18.00X25-12PR which will be directional pattern mould. All repairs except through cut repair, in course of retreading will be done free of cost on retreadable tyre. Shore hardness of retreaded tyre should be 65 +/-5 % on Durometer Gauge / Scale. Asst Manager (X/MM), NCL, Singrauli Chief Manager (MM), NCL, Singrauli Page 8

9 NORTHERN COALFIELDS LIMITED MM DEPT: SINGRAULI Annexure-II Sl. No Name of the Consignee/ Direct Demanding Officer Amlohri Project, Northern Coalfields Limited, P.O. : Amlohri Colliery, Distt. Singrauli (MP) Bina Project, Northern Coalfields Limited., P.O.: Bina Colliery, Distt. Sonebhadra (UP) Jayant Project, Northern Coalfields Limited., P.O. : Jayant Colliery, Dist. : Singrauli (M.P.): Khadia Project, Northern Coalfields Limited., PO : Khadia Colliery, Dist. : Sonebhadra (UP) Nigahi Project, Northern Coalfields Limited, P.O.: Nigahi Project, Distt. Singrauli (M.P.) Dudhichua Project, Northern Coalfields Limited, P.O. Khadia Colliery, Dist. : Sonebhadra (UP) Jhingurda Project, Northern Coalfields Limited, P.O.: Jhingurda Colliery, Distt. Singrauli (M.P.) Krishnashilla Project, Northern Coalfields Limited, P.O.: BINA Colliery, Distt. Sonebhadra (U.P.) Paying Authority Area Finance Manager, Amlhori Project, Northern Coalfields Limited, P.O. : Amlohri Colliery, Distt. Singrauli (MP) Area Finance Manager, Bina Project, Northern Coalfields Limited., P.O.: Bina Colliery, Distt. Sonebhadra (UP) Area Finance Manager, Jayant Project, Northern Coalfields Limited., P.O. : Jayant Colliery, Dist. : Singrauli (M.P.): Area Finance Manager, Khadia Project, Northern Coalfields Limited., PO : Khadia Colliery, Dist. : Sonebhadra (UP) Area Finance Manager, Nigahi Project, Northern Coalfields Limited, P.O.: Nigahi Project, Distt. Singrauli (M.P.) Area Finance Manager, Dudhichua Project, Northern Coalfields Limited, P.O. Khadia Colliery, Dist. : Sonebhadra (UP) Area Finance Manager, Jhingurda Project, Northern Coalfields Limited, P.O.: Jhingurda Colliery, Distt. Singrauli (M.P.) Area Finance Manager, Krishnashilla Project, Northern Coalfields Limited, P.O.: BINA Colliery, Distt. Sonebhadra (U.P.) Page 9

10 9 10 Block B Project, Northern Coalfields Limited., P.O. : Gorbi Colliery, Distt. Singrauli (MP) Kakri Project, Northern Coalfields Limited., P.O.: Bina Colliery, Distt. Sonebhadra (UP) Area Finance Manager, Block B Project, Northern Coalfields Limited., P.O. : Gorbi Colliery, Distt. Singrauli (MP) Area Finance Manager, Kakri Project, Northern Coalfields Limited., P.O.: Bina Colliery, Distt. Sonebhadra (UP) Asst Manager (X/MM), NCL, Singrauli Chief Manager (MM), NCL, Singrauli Page 10

11 NORTHERN COALFIELDS LIMITED MM DEPT: SINGRAULI Annexure-III Depot Officers are advised to place Work Order against approved and Concurred proposal within the following offtake limit during the validity period of Rate Contract. Project wise 60% Offtake Value for 02 Years for retreading of OTR Tyres size 24.00X49-48PR / 24.00R49 Project 60% Offtake Value (Rs.) for 02 years Amlhori Nigahi Jayant Jhingurda Dudhichua Khadia Bina Kakri Krishnashilla Total 60% Offtake Value for 2,55,28, Years Project wise 40% Offtake Value for 02 Years a. For retreading of OTR Tyre size 18X25 12PR: Project 40% Offtake Value(Rs.) for 02 Years Jayant Jhingurda Block B Dudhichua Bina Krishnashilla Total 40% Offtake 6,75, Value for 02 Years b. For retreading of OTR Tyre size 18X25 32PR: 40% Offtake Value(Rs.) Project for 02 Years Amlhori Nigahi Jayant Jhingurda Page 11

12 Block B Dudhichua Khadia Bina Kakri Krishnashilla Total 40% Offtake Value 18,03, for 02 Years (A. K. Giri) Asst. Manager (X/MM) (M. A. Siddiqui) Chief Manager (MM) Page 12