(1 X 600 MW ) - TNEB Commercial Terms and Conditions

ANNEXURE-2BHEL ISG REF: IS-1-10-ETPS-TN-E-01ENNORE THERMAL POWER STATION (1 X 600 MW ) - TNEBCommercial Terms and ConditionsName of the BidderTender Ref. and DateEnquiry Ref. and DateProjectScope of WorkIS-1-10-ETPS-TN-E-01 Dt.11.11.2010Pre-Tender tie-up for – ENNORETHERMAL POWER PROJECT (1 X 600MW )- TNEBDESIGN, ENGINEERING,MANUFACTURING, SUPPLY AND E&COF TOTAL EXTERNAL COALHANDLING SYSTEM ON TURNKEYBASISSl No BHEL Requirement Vendor Acceptance /Remarks1 All Commercial terms & conditions are on ‘back toback’ basis in line with ultimate customer contractterms detailed in tender volumes.2 Validity:Vendor shall extend validity of MOU prices as requiredtime to time inline with ultimate customer’srequirement of BHEL’s offer validity3 In the event of price reduction during negotiation byBHEL with the ultimate customer, correspondingreduction (i.e., on pro-rata basis with respect tovendor’s price) shall be effected on to the vendor’sMOU price4 BID BOND : 1% of the value of MOU price shall befurnished by the successful vendor through bankguarantee within 30 days of signing MOU ( Format asper Annexure 4 ).5 For execution of Performance Bank Guaranteeapplicable as per enclosed Annexure 3.6 Detailed item wise price break up shall invariably befurnished strictly in line with price format / BOQalong with Addition / Deletion / Takeoff prices7 Price Bid opening:Vendor shall submit their most competitive offer.Price bids shall be opened in Camera.‘L1’ party would be decided based on competitiveprice bids received from vendors for the “Pre Tendertie-up”Page 1 of 2

ANNEXURE-2BHEL ISG REF: IS-1-10-ETPS-TN-E-01Sl No BHEL Requirement Vendor Acceptance /Remarks8 Basis for evaluating ‘L1’ vendor status :The lowest of Alternate A or Alternate B ( if foundtechnically acceptable ) will be considered forarriving at the ‘L1’ vendor status.9 Integrity pact rules as applicable will be followed.Important Notes:1. Deviations will not be accepted by BHEL. Bids with deviations will be rejected.2. Vendor shall fill all the above columns by indicating ‘Accepted’ and deviations if any tobe indicated clearly against each clause. All the pages of terms & specifications to besigned with seal as token of acceptance3. No prices to be filled in this format. All prices are to be filled up in the enclosed pricebid format. Breakup prices shall be indicated As per price bid format4. Unpriced bid to be enclosed with the techno commercial bid.Page 2 of 2