Rewari Kanpur Pipeline Project Bid Document for Supply o

14.7 PURCHASE/PRICE PREFERENCE
v) Imports duty at prevailing rates (Merit rate of customs duty)
vi) Letter of Credit (L/C) charges @ 1.05% of FOB prices
vii) Inland freight (including Transit Insurance) @ 1% of [(i) + (ii) + (iii)
+ (iv) + (v) + (vi)] + Service Tax @ 3.09% on inland freight.
viii) Octroi / Entry tax highest amount quoted by Indian Bidder in the
tender in case the same is not mentioned by bidder.
ix) Loading on account of technical / commercial parameters, if any
x) Charges towards Supervision of Erection/Installation, Testing &
Commissioning based on number of days as specified in Chapter-
5 & Service Tax @ 12.36% on supervision of Erection/Installation,
Testing & Commissioning shall be considered for evaluation as
well as for placement of order.
14.7.1 HPCL will follow purchase / price preference policy as per prevailing guidelines of
Government of India. Currently, domestic manufactures of capital goods supplied to
fertilizer, power and petroleum projects under international competitive bidding would be
accorded a price preference as explained below under clause 14.7.2 Besides above
price preference up to 15 % over the lowest tender can be extended to small scale
industries (registered with NSIC). The actual quantum of price preference up to
maximum 15 % shall be decided on the merits of each case. However in all cases the
SSI certificate should contain the items to be purchased. The situation where price
preference shall not be granted to small scale industries (NSIC registered) shall be as
per clause 14.7.6
14.7.2 To offset Central Sales Tax levied on Indian Manufacturer of capital goods, price
preference to the extent of 4% or actual whichever is less, would be accorded, subject to
30% of local content norm (required documentary evidence will be as decided by Owner).
The supplies of materials and equipment by Domestic bidders are eligible, as per
Government directives to following preference:
EXTENT OF DOMESTIC VALUE
ADDED
Less than 30% NIL
EXTENT OF PRICE PREFERENCE
30% and more Domestic preference shall be limited to
Off-setting of Central Sales Tax to the extent
of 4% or actuals whichever is lower plus
Octroi at actuals.
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