BHARAT PETROLEUM CORPORATION LIMITED PRESS TENDER

CENTRAL PROCUREMENT ORGANISATION (MKTG)BHARAT PETROLEUM CORPORATION LIMITED‘A’ INSTALLATION, SEWREE FORT ROADSEWREE (E), MUMBAI - 400 015PRESS TENDERFOR SUPPLY OF SELF CLOSING VALVES TO VARIOUSLOCATIONSCRFQ NO.: 1000182234DUE DATE: 4/4/13 AT 1500 HRS

CPO:GR V:12-13:22 14 th March, 2013M/s.Dear Sir/Madam,Subject: Invitation of Tender for supply of 32 lakh nos. ofSelf closing valves (CRFQ no. 1000182234 due on 4/4/13 at 3 pm)1. You are invited to submit your offer in a two-part bid for supply of 32 lakh nos. Selfclosing valves (SC valves) for LPG cylinders (as per the drawing attached herewith)at various locations across the country intimated from time to time, on the terms &conditions contained in this tender document.2. Any manufacturer having valid approval from PESO and licence from BIS formanufacture of Self closing valves as per IS- 8737 (latest revision) valid as on thedue date of this tender is eligible for quoting.3. This tender document consists of the following annexures and forms:a) Techno-commercial BidTechno-commercial bid consists of following annexures that are enclosed:3.1 Annexure I - Instructions to Tenderer3.2 Annexure II - General Instructions to Tenderers for e-tendering3.3 Annexure III - Proforma of Integrity Pact (IP)3.4 Annexure IV - Technical Specifications of SC valves3.5 Annexure V - Drawings3.6 Annexure VI - Terms & conditions of procurement for SC valvesInformation pertaining to Particulars of Tenderers and Relationship with Directorsshall have to be submitted online.b) Price Bid: The price bid along with ED/ST/CST/VAT information shall also have tobe submitted online as per the proforma given in Annexure I mentioned in point 3.1above.4. Tenderers shall also have to essentially sign an Integrity Pact (IP, mentioned in point3.3 above) for participating in this tender.5. Please visit the website https://bpcl.eproc.in for participating in the tender andsubmitting your bid online.6. Additionally, you shall be required to submit the EMD (if applicable), in physical form atour office.

7. Your online bid as well as the instrument to be submitted in physical form should besubmitted on or before the due date of this tender viz. 4 th April, 2013 by 3 pm.8. Bid submitted after the due date and time of closing of the tender or not in theprescribed format is liable to be rejected. BPCL does not take any responsibility forany delay in submission of online bids due to connectivity problem or non-availability ofsite and/or other documents to be submitted in physical form due to postal delay. Noclaims on this account shall be entertained.9. Price bid of only those tenderers shall be opened whose techno-commercial bid isfound to be acceptable. Such tenderers would also be considered eligible forparticipating in short tender(s) for procurement of SC valves that BPCL may floatfrom time to time for meeting small requirements, if any, till the next press tender isfloated10. For clarifications, if any, please feel free to contact the undersigned on any workingday between 10:00 am to 4:00 pm.Thanking you,Yours faithfully,for Bharat Petroleum Corporation Ltd.Sandeep SrivastavaProcurement Leader (CPO) – Group V

CRFQ NO. 1000182234ANNEXURE IINSTRUCTIONS TO TENDERERINSTRUCTIONS TO TENDERER1. Competitive offers are invited in two part bid from the manufacturers of Self-Closing Valves (SC valves) for the sale and delivery of approximately 32 lakhnos. SC valves on the terms and conditions contained herein.2. Only parties with valid PESO approval & BIS licence for manufacture of SCValves required in this tender document as per IS- 8737 (latest revision), as onthe due date of this tender shall be eligible to quote.3. The tender is for a period of Twelve months from the date of placement ofRate Contract. Escalation/ de-escalation based on the change in the price ofHigh grade Zinc and Copper Cathode Full at Tarapur (Mumbai) as declared byM/s. Hindustan Zinc Ltd and M/s. Hindustan Copper Ltd respectively, shall beapplicable as per the clause 4 of Annexure VI.4. This is basically a rate contract and quantities are not guaranteed. However,state-wise estimated requirement as per best estimate is given at the end of thisannexure. BPCL reserves the right to ask for supplies to those states also thatare not appearing in the list.5. The tenderer shall have to offer minimum quantity of 2 lakh nos. SC Valvesand in multiples of 10,000 nos. thereafter.6. Offers should strictly be in accordance with the tender terms & conditions andour specifications. Tenderers are requested to carefully study all thedocuments/annexures and understand the conditions, specifications, drawingsetc, before submitting the tender and quoting rates. In case of doubt, writtenclarifications should be obtained, but this shall not be a justification for requestfor extension of due date for submission of bids.7. REFERENCE FOR DOCUMENTATION:iiiThe number and date of Collective Request for Quotation (CRFQ) mustappear on all correspondence before finalization of Rate Contract / PurchaseOrder.After finalization of Rate Contract / Purchase Order, the number and date ofRate Contract/Purchase Order must appear on all correspondence,drawings, invoices, dispatch advices, (including shipping documents ifapplicable) packing list and on any documents or papers connected with thisorder.8. RIGHT OF CORPORATION TO ACCEPT OR REJECT TENDER:The right to accept the tender will rest with the corporation.Page 1 of 14

CRFQ NO. 1000182234ANNEXURE IINSTRUCTIONS TO TENDERER9. LANGUAGE OF BID:The Bid and all supporting documentation and all correspondence exchangedby tenderer and Corporation, shall be written in English language only.10. Tenderers shall also have to essentially sign an Integrity Pact (IP) forparticipating in this tender. The salient points to be noted in regard to IP are:a) If the tenderer has been disqualified from the tender process prior to theaward of the contract in accordance with the provisions of the Integrity Pact,BPCL shall be entitled to demand and recover from Tenderer Price reductionamount by forfeiting the EMD/Performance Guarantee as per provisions ofthe Integrity Pact.b) If the contract has been terminated according to the provisions of theIntegrity Pact, or if BPCL is entitled to terminate the contract according to theprovisions of the Integrity pact, BPCL shall be entitled to demand andrecover from contractor, Price reduction amount by forfeiting thePerformance Guarantee amount as per provisions of the Integrity Pact.c) Tenderers may raise disputes/complaints, if any, with the nominatedIndependent External Monitor.d) The name, address and contact numbers of the nominated IndependentExternal Monitor is as follows:Mr. Shri Janki BallabhFlat No.605, Versova VinayakCo-Op. Hsg. Soc.,HSG Plot No.8,Near Versova Telephone Exchange, Versova,Andheri(West), Mumbai 400 053.Contact no.022-26353456 Mobile : 983336306611. Techno-commercial bid (consisting of the entire attached tender documents,Credential Form and Declaration Form) and price bid as well as all uploadeddocuments (as mentioned in clause (15) below) shall form the part of thetender. Both the techno-commercial bid and the priced bid will be onlineonly. Only EMD is exception to this rule, which will have to be submitted inenvelope. The General Instructions to tenderers for e-tendering are enclosedas Annexure II.12. All the supporting documents should be legible and duly signed, stamped andattested by the authorized signatory as specified in clause (13) below, beforeuploading them online.Page 2 of 14

CRFQ NO. 1000182234ANNEXURE IINSTRUCTIONS TO TENDERERProforma of Integrity Pact has been uploaded as Annexure III of tenderdocuments. Tenderer shall be required to download and print it such that it islegible. All pages of the printed copy of IP should be duly signed by theauthorized signatory as specified in clause (13) below and witnessed.Thereafter, that copy should be scanned and uploaded by tenderer along withother commercial bid documents.All drawings have been uploaded as Annexure V of tender documents.Tenderer shall be required to download this annexure and then upload it underthe digital signature as token to having read, understood and accepted them intoto.13. Techno-commercial bid and price bid shall be required to be digitally signedwith a class IIB or above digital signature by the authorised signatory. Theauthorized signatory shall be :a. Proprietor in case of proprietary concern.b. Authorised partner in case of partnership firm.c. Director, in case of a limited Company, duly authorized by its board ofdirectors to sign.If for any reason, the proprietor or the authorised partner or director as the casemay be, are unable to digitally sign the document, the said document should bedigitally signed by the constituted attorney having full authority to sign the tenderdocument and a scanned copy of such authority letter as also the power ofattorney (duly signed in the presence of a Notary public) should be uploadedwith the tender.Online submission of the tender under the digital signature of the authorizedsignatory shall be considered as token of having read, understood and totallyaccepted all the terms and conditions.14. Earnest Money Deposit (EMD)a) The tenderers shall submit an interest-free Earnest Money Deposit of Rs.2lakh (Rupees two Lakh only) by crossed account payee Demand Draftdrawn on any nationalised/ scheduled bank in favour of “BHARATPETROLEUM CORPORATION LTD” payable at Mumbai.b) EMD should be submitted in physical form in a sealed cover addressed toProcurement Leader (CPO) - Group V, boldly super-scribed on the outercover – CRFQ number Item Closing date/Time Name of the tendererPage 3 of 14

CRFQ NO. 1000182234ANNEXURE IINSTRUCTIONS TO TENDERERIt should be dropped in the tender box or sent by Registered Post/Courier tothe following address so as to reach on or before the due date & time of thetender:Central Procurement Organization (CPO),‘A’ Installation, Sewree Fort Road,Sewree, Mumbai-400015BPCL will not be responsible for non-receipt of instrument(s) due to postaldelay/loss in transit etc.c) Cheques, cash, Money Orders, Fixed deposit Receipts, Bank guaranteesetc. towards EMD are not acceptable. Similarly, request for adjustmentagainst any previously deposited EMD/Pending Dues/Bills/Security Depositsof other contracts etc. will not be accepted towards EMD.d) Bid received without the EMD is liable to be rejected.e) Units registered with National Small Industries Corporation (NSIC) and/orMicro or Small Enterprises (MSE) are however, exempted from payment ofEMD, subject to :• The unit being registered for the item tendered.• Registration certificate being valid as on date of quotation.Such vendors must upload a photocopy of valid NSIC RegistrationCertificate/ Review certificate duly attested by a gazetted officer/notorised,(photocopy of application for registration as NSIC or for renewal will not beacceptable) and/or a valid MSE registration with any notified body specifiedby Ministry of Micro, Small and Medium Enterprises, failing which such bidwill be treated as bid received without EMD and liable to be rejected.f) Registration with DGS&D will not entitle the Tenderer to claim exemptionfrom payment of EMD.g) EMD is liable to be forfeited and tenderers shall be barred for a period of oneyear from taking part in any tender floated by BPCL in future, in the event of :i. Withdrawal of offers during the validity period of the offer. (Refer itemno. 19 of this Annexure)ii.Non-acceptance of LOI/order, if and when placed.iii. Any unilateral revision in the offer made by the tenderer during thevalidity of the offer.Page 4 of 14

CRFQ NO. 1000182234ANNEXURE IINSTRUCTIONS TO TENDERERiv. Non-payment of Supply and Performance Guarantee amount within thestipulated period of 10 days from date of LoI/ the Purchase Orderwhichever is earlier.h) EMD will be refunded by National Electronic Fund Transfer to all thesuccessful tenderers after they deposit the amount for Supply andPerformance Guarantee (refer Item 2 of Annexure VI) against LOI/PurchaseOrders, as placed. In case a successful vendor wishes to convert the EMDamount to Supply and performance Guarantee amount, the tenderer shouldsubmit written request for the same.i) EMD will be refunded by National Electronic Fund Transfer to all theunsuccessful tenderers after placement of order on all successful tenderers.15. The complete process for submitting the bid is as follows:A. Techno-commercial Bidi Accept the contents of the following annexures in toto by clicking on thebutton provided on the screen below each one of them:a. Instructions to Tenderer Annexure Ib. General Instructions to Tenderers for e-tendering Annexure IIc. Technical Specifications of SC Valves Annexure IVd. The terms & conditions of Agreement forProcurement of SC ValvesAnnexure VIiiProforma of Integrity Pact (IP) has been uploaded as Annexure III oftender documents. Tenderer shall be required to download and print it suchthat it is legible. All pages of the printed copy of IP should be duly signed bythe authorized signatory and witnessed. Thereafter, that copy should bescanned and uploaded by tenderer along with other bid documents.iii Upload Annexure V (Drawings) under the digital signature as a token oftheir acceptance.iv Upload a scanned copy (in pdf or jpg format) ofa) Copies of valid PESO and BIS licence duly attested.b) Integrity Pact duly signed and witnessedc) Copy of PAN Cardd) Valid NSIC Registration Certificate [if applicable]e) Copy of the certificate stating that the vendor is a Micro and SmallEnterprises (MSEs) [if applicable]f) Copy of the certificate stating that MSEs is owned by Scheduled Caste(SC) or the Scheduled tribe (ST) entrepreneurs [if applicable]Page 5 of 14

CRFQ NO. 1000182234ANNEXURE IINSTRUCTIONS TO TENDERERg) Certified copies of Registration certificate under DGTD, Central Excise &Central & State Sales Tax.h) Certified copies of Partnership Deed/ Memorandum & Articles ofAssociation & Certificate of registration with the Registrar of Companies’(if applicable).i) Copies of audited P & L A/c and Balance Sheet for the last three yearsj) Bankers Certificate indicating Credit worthiness (in value) of the firmk) OrganogramIn case no. of pages to be uploaded are more, then the same can also bezipped and uploaded.vOnline fill in information in Credential Form, Declaration Form.Additionally, EMD [if applicable] has to be submitted in physical form.B. Price bidOnline fill in the quotes and ED/CST/VAT information in the price bid form.The details of the price bid form has been provided as clause (27) of thisannexure16. Incomplete bids or bids received with deviations/subjective or counterconditions/quantity restrictions are liable to be rejected. No furthercorrespondence/enquiries raised on this issue by the tenderer shall beentertained. Any terms and conditions stated by the Tenderer in his bid will notbe binding on the Corporation.17. Bids submitted after the due date and time and those not in the format or not inconformity with the prescribed terms and conditions or specifications shall besummarily rejected and no further correspondence/ enquiries shall beentertained on the issue. No responsibility shall be taken by the Corporation andno claims on this account shall be entertained.18. Unsolicited / conditional discounts if offered by any party will not be consideredand offers of parties offering such unsolicited discounts are liable to be rejected.19. The price bid submitted by the tenderer shall be valid for acceptance for aperiod of 90 days from the date of closing of the tender.20. ACCEPTANCE OF BIDS BY THE CORPORATION:a) Techno-commercial BidBased on the information and instruments/documents submitted, all tenderersmeeting the following criterion shall qualify in the techno-commercial bid:Page 6 of 14

CRFQ NO. 1000182234ANNEXURE IINSTRUCTIONS TO TENDERERi They should have valid PESO approval & BIS licence for manufacture of SCValve as per IS-9798 (latest revision), as on the due date of the tender.i. They should accept the Techno-commercial bid in entirety as explained inclause 15 above.ii. They should accept all the technical specifications and agree to manufactureSC valves as per enclosed drawingsiii. They should have submitted the Integrity Pact online, duly signed andwitnessed.iv. They should have uploaded a valid NSIC and/or MSE RegistrationCertificate [if applicable]v. BPCL should have received the EMD (if applicable) submitted by themii They should not have been debarred or black listed by BPCL fromparticipation in any tender floated by BPCL for a period that is not over as onthe due date of this tenderPrice bid of only those tenderers will be opened who qualify in the technocommercialbid.The tenderers who qualify in the techno-commercial bid would also beconsidered eligible for participating in short tender(s) for procurement ofSC Valves that BPCL may float from time to time for meeting smallrequirements, if any, till the next press tender is floated.b) Price Bidi. Through this tender, BPCL seeks to surface the lowest price supplier foreach State. Hence price bid evaluation shall be done at the level ofindividual state.ii.The order allotment will be finalised by BPCL by taking into account thefollowing:Quoted basic priceExcise duty (including cess, surcharge etc. thereof) as declared bythe tendererOther cash outflows that shall include Sales Tax, freight charges for aparticular tenderer for each stateInput Tax Credit (ITC) available, if anyQuantity Offered by the tendereriii.BPCL shall calculate the net delivered price (NDP) per SC VALVE for eachstate for each tenderer by adding:Excise Duty (ED) as applicable and declared by the tendererCST/VAT (ST) as applicable and declared by the tendererFreight quoted per SC VALVEPage 7 of 14

CRFQ NO. 1000182234ANNEXURE IINSTRUCTIONS TO TENDERERto the ex-factory price per SC VALVE quoted by the tenderer by using thefollowing formula:NDP = (quoted basic price per SC Valve * (1+ED [in %]/100) +Freight) * (1+CST/VAT [in %]/100)“Net cost to BPCL” (equal to net delivered price [NDP] as calculated aboveless input tax credit [ITC]) shall form the basis for selection of vendorsfor placement of order and initial order allotment.Net cost to BPCL = NDP - ITCFor the purpose of tender evaluation, the Net Cost to BPCL calculatedas above shall be rounded off to two-places of decimal (i.e. nearestpaise) using Microsoft Excel software.iv. Based on the “net cost to BPCL” calculated as above, BPCL shall placeorders on one or more tenderers whose offer is considered acceptable toBPCL.An illustration is as under:Let us assume that for a LPG plant named XYZ located in Maharashtra(a) If a vendor situated in Maharashtra quotes the following, Basic price = Rs. 90/- per SC VALVE Excise Duty rate = 12% Freight from vendor’s unit to XYZ plant = Rs.1/- per SC VALVE VAT = 5% and ITC = 3%Then,NDP = (90*(1+12/100) + 1) * (1+ 5/100) = Rs.106.89 per SC VALVEThus Rs. 106.89 per SC VALVE shall be payable to the vendor (plusoctroi if applicable) Now, ITC available to BPCL = (90*(1+12/100) + 1) * 3/100 = Rs.3.05 “net cost to BPCL” = NDP - ITC= 106.89 – 3.05 = Rs. 103.84 per SC VALVEPage 8 of 14

CRFQ NO. 1000182234ANNEXURE IINSTRUCTIONS TO TENDERERHowever, for the purpose of evaluation, this quote shall be considered asRs.103.84 per SC VALVE.(b) If a vendor situated in Andhra Pradesh quotes the following, Basic price = Rs.89/- per SC VALVE Excise Duty rate = 12% Freight from vendor’s unit to XYZ plant = Rs.2/- per SC VALVE CST = 2%Then, NDP = (89*(1+12/100) + 2) * (1+ 2/100) = Rs.103.71 per SC VALVE ITC available to BPCL = 0 “net cost to BPCL” = NDP - ITC= 103.71 – 0 = Rs. 103.71 per SC VALVEThus in the second case, both the price payable to the vendor as well asthe quote value for the purpose of evaluation shall be taken as Rs. 103.71per SC VALVE.v. Ranking of vendors will be based on “net cost to BPCL” calculated as perthe original quotation. Order distribution will be done such that thereare minimum two vendors for each state. The ratio of orderdistribution among L1:L2 will be on 80:20 basis, subject to theavailability of quantity offered by the lowest quoted vendor.vi. In the event that same rate is quoted by 2 or more tenderers for any stateand even if they are acceptable to BPCL, BPCL is not bound to eitheraccept all such offers or to equally distribute the state’s requirement for SCValves amongst the tenderers who have quoted the same rate.vii. Orders on units who qualify in the bid but have not supplied SC Valves toOMCs so far or in the last two years (ending on the date of floating thetender), shall be placed only after BPCL ascertains their capability. In casethe manufacturing/ Inspection facilities set-up by such tenderers are foundsatisfactory by BPCL, a trial order for minimum 5000 numbers SC Valves(or allotted contract quantity, whichever is lower) will be placed. Onsatisfactory execution of the trial order which is cleared during the predeliveryinspection by the BPCL technical team, BPCL shall considerplacement of regular orders based on allotment.viii. BPC reserves the right to negotiate with tenderers and counter offer a rateif required. The contracts shall be finalized at the negotiated rates in linewith clause 4 of Annexure VI (Price).Page 9 of 14

CRFQ NO. 1000182234ANNEXURE IINSTRUCTIONS TO TENDERERix. In the event the tenderer who has offered the best rates, fails to supply theSC Valves, BPCL may place orders with the next best tenderers, ifconsidered necessary.x. In the event it becomes necessary for the Corporation to procure SCValves at different rates, then the Corporation reserves the right to makeorder allotment in such a way so as to enable the Corporation to get themaximum advantage.xi. The Corporation is not bound to accept the lowest offer and reserve theright to reject any and/ or every tender without assigning any reasonwhatsoever and/or place order on one or more tenderers and/ or carry outnegotiations with any tenderer in the manner considered appropriate by theCorporation. Corporation also reserves the right to reject any un-workableoffer.xii. Corporation reserves its right to allow Public Sector Enterprises (Central/State), purchase preference as admissible/applicable from time to timeunder the existing Govt. policy. Purchase preference to a PSE shall bedecided based on the price quoted by PSE as compared to L1 Vendor atthe time of evaluation of the price bid.Corporation also reserves its right to allow Micro and Small Enterprises(MSEs) and MSEs owned by Scheduled Caste (SC) or the Scheduled tribe(ST) entrepreneurs, purchase preference as admissible/applicable fromtime to time under the existing Govt. policy. Purchase preference to a MSEand a MSE owned by SC/ST entrepreneurs shall be decided based on theprice quoted by the said MSEs as compared to L1 Vendor at the time ofevaluation of the price bid.21. Tenderers may have to attend the concerned office of the Corporation fornegotiations/ clarifications if required at their own cost, in respect of theirquotations without any commitment from the Corporation.22. ANTI –COMPETITIVE AGREEMENTS/ABUSE OF DOMINANT POSITION:The Competition Act, 2002 as amended by the Competition (Amendment) Act,2007 (the Act), prohibits anti-competitive practices and aims at fosteringcompetition and at protecting Indian markets against anti- competitive practicesby enterprises. The Act prohibits anti-competitive agreements, abuse ofdominant position by enterprises, and regulates combinations (consisting ofacquisition, acquiring of control and M&A) wherever such agreements, abuse orcombination causes, or is likely to cause, appreciable adverse effect oncompetition in markets in India. Bedsides taking punitive action as enshrinedunder Integrity Pact, BPCL reserves the right to approach the CompetitionPage 10 of 14

CRFQ NO. 1000182234ANNEXURE IINSTRUCTIONS TO TENDERERCommission established under the Act of Parliament and file informationrelating to anti-competitive agreements and abuse of dominant position. If sucha situation arises, then tenderers shall be bound by the provisions of the saidstatute.23. It shall be understood that every endeavour has been made to avoid errorswhich can materially affect the basis of the tender and the successful Tenderershall take upon himself and provide for risk of any error which may subsequentlybe discovered and shall make no subsequent claim on account thereof.24. Courts in the city of Mumbai alone shall have jurisdiction to entertain anyapplication or other proceedings in respect of anything arising under this tendereither before or after or during finalisation of the tender.25. State-wise estimated requirement of SC Valves is given below. However, it isliable to change depending on actual state demand.S.No. State Requirement1 Andhra Pradesh 230,0002 Assam 6,0003 Bihar 66,0004 Chattisgarh 15,0005 Goa 16,0006 Gujarat 182,0007 Haryana 170,0008 Karnataka 160,0009 Kerala 170,00010 Madhya Pradesh 192,00011 Maharashtra 820,00012 Orissa 32,00013 Punjab 176,00014 Rajasthan 165,00015 Tamilnadu 266,00016 Uttar Pradesh 380,00017 Uttaranchal 37,00018 West Bengal 117,000Total 3,200,000Page 11 of 14

CRFQ NO. 1000182234ANNEXURE IINSTRUCTIONS TO TENDERER26. List of abbreviations used :The term “SC Valve” in the appropriate context means Self Closing ValveThe terms “BPC”, “BPCL”, The Corporation and the Company in the appropriatecontext means Bharat Petroleum Corporation Limited, the Company registeredunder Companies Act 1956 and includes its successors and assignees.The term “RATE CONTRACT” means the agreement for supply of goods/materials between Owner and successful tenderer, for a fixed period of time (i.etill validity of Rate Contract, with no commitment of contractual quantity) onmutually agreed terms and conditions. The actual supply of goods/ materialsshall take place only on issue of separate purchase orders for required quantityas and when required by Owner.The term “PESO” in the appropriate context means Petroleum and ExplosiveSafety Organisation.The term “BIS” in the appropriate context means Bureau of Indian Standards.The term “OITC” in the appropriate context means Oil Industry TechnicalCommittee.The term “OMC” in the appropriate context means PSU Oil MarketingCompanies viz. M/s Indian Oil Corpn. Ltd, M/s Bharat Petroleum Corpn. Ltd.,M/s Hindustan Petroleum Corpn. Ltd. and M/s IBP Co. Ltd.The term “UT” in the appropriate context means Union TerritoryThe term “PSU” / “PSU Oil Company” in the appropriate context means PublicSector Undertaking Oil Marketing CompaniesThe term “PSE” in the appropriate context means Central Public Sector EnterpriseThe term “LoI” in the appropriate context means Letter of IntentThe term “PO” in the appropriate context means Purchase OrderThe term “PR” in the appropriate context means Price ReductionThe terms “NDP” in the appropriate context means Net Delivered PriceThe term “VAT” in the appropriate context means Value Added TaxThe term “ITC” in the appropriate context means Input Tax CreditPage 12 of 14

CRFQ NO. 1000182234ANNEXURE IINSTRUCTIONS TO TENDERER27. Proforma of the price bid form is as follows:1. Quantity Offered and Price:S.No.ShortDescriptionLong descriptionData1 Quantity Offered(nos.)This shall be the maximum quantity of the tenderedmaterial the tenderer shall be able to manufacture &supply during the contract period to BPCL, of thespecifications and on the terms mentioned in thetender document. The tenderer shall have to offerminimum quantity as specified. BPCL shall have theright to verify the offered manufacturing capacity atany time during the currency of the tender/ orders andamend the order quantity suitably. Any and all financialrisk, cost and penalties on account of this would beborne by the tenderer.To bequoted bythetenderer2 Minimumquantity to beoffered3 IncrementalquantityThe tenderer shall have to offer minimum quantity of 2,00,000nos.Quantity offered over and above the minimum quantityshould be in multiples of10,000 nos.4 Contract Period Contracts shall be valid for 12 months5 Basic price perunit of material(Rs.)6 Base date forpricecalculations7 Excise Dutypayable on thematerial (%)It is to be quoted in Rs. per unit of material and shallinclude all applicable duties, taxes (except excise dutyand sales Tax/VAT), transit insurance (if tendererdesires so), loading/unloading charges and any otherincidental charges and such other duties and levies asmay be imposed for sale and delivery of the tenderedmaterial. Only Excise duty and Sales tax/VAT asapplicable and declared by the tenderer, freight asquoted and octroi as applicable shall be payable overand above this amount.The afore-mentioned rate shall be suitablyescalated/de-escalated as per tender conditions. Thebasic price should be quoted based on the rawmaterial rates, taxes and duties prevailing as onIt is to be quoted in % and shall also include educationcess, surcharge etc. payable on excise dutyTo bequoted bythetenderer01-03-2013To bequoted bythetenderer2. Rate of freight and CST/VAT: This shall consist of Rs. per SC Valve freightrates from the manufacturing unit premises to each State and CST/VATchargeable for such delivery.Page 13 of 14

CRFQ NO. 1000182234ANNEXURE IINSTRUCTIONS TO TENDERERSl.No.1ITCavailableLocation/State (in %)AndhraPradesh 14.52 Assam nil3 Bihar 13.54 Chattisgarh 55 Goa 56 Gujarat nil7 Haryana nil8 Karnataka 14.59 Kerala 13.5Madhya510 Pradesh11 Maharashtra 12.0312 Orissa nil13 Punjab 6.0514 Rajasthan nil15 Tamilnadu nil16 Uttar Pradesh nil17 Uttaranchal nilFreight (inRs. Per SCvalve)Type of Tax(CST/VAT)Rate ofTax (in %)18 West Bengal nilPage 14 of 14

CRFQ No.: 1000182234Annexure IIGeneral Instructions to tenderers for E-TenderingGeneral Instructions to tenderers for E-Tendering1. Interested parties may download the tender from BPCL website(http://www.bharatpetroleum.in) or the CPP portal (http://eprocure.gov.in) orfrom the e-tendering website (https://bpcl.eproc.in) and participate in thetender as per the instructions given therein, on or before the due date of thetender. The tender available on the BPCL website and the CPP portal can bedownloaded for reading purpose only. For participation in the tender, please fillup the tender online on the e-tender system available on https://bpcl.eproc.in.2. For registration on the e-tender site https://bpcl.eproc.in, you need to downloadthe User Instruction Manual from the site and read it. They shall have to select“Enrollment” and complete the “Supplier Registration Form” by filling in all theinformation correctly. Kindly remember the login id, password entered therein.After you complete this process, system will generate an e-mail wherein asystem generated “Challenge Phrase” will be mailed to you to completebalance registration process.3. As a pre-requisite for participation in the tender, tenderers are required toobtain a valid Digital Certificate of Class IIB and above as per Indian IT Actfrom the licensed Certifying Authorities operating under the Root CertifyingAuthority of India (RCIA), Controller of Certifying Authorities (CCA). The costof obtaining the digital certificate shall be borne by the tenderer.In case any tenderer so desires, he may contact our e-procurement serviceprovider M/s. C1 India Pvt. Ltd., Mumbai (Contact no. 022-66865600/ 01/ 02)for obtaining the digital signature certificate.4. Corrigendum/amendment, if any, shall be notified on the sitehttps://bpcl.eproc.in. In case any corrigendum/amendment is issued after thesubmission of the bid, then such tenderers who have submitted their bids, shallbe intimated about the corrigendum/amendment by a system-generated email.It shall be assumed that the information contained therein has been taken intoaccount by the tenderer. They have the choice of making changes in their bidbefore the due date and time.5. Tenderers are required to complete the following process online on or beforethe due date of closing of this tender:. Techno-commercial Bidi Accept the contents of the following annexures in toto by clicking on thebutton provided on the screen below each one of them:a. Instructions to Tenderer Annexure Ib. General Instructions to Tenderers for e-tendering Annexure IIPage 1 of 4

CRFQ No.: 1000182234Annexure IIGeneral Instructions to tenderers for E-Tenderingiic. Technical Specifications of SC Valves Annexure IVd. The terms & conditions of Agreement forProcurement of SC ValvesAnnexure VIProforma of Integrity Pact (IP) has been uploaded as Annexure III oftender documents. Tenderer shall be required to download and print itsuch that it is legible. All pages of the printed copy of IP should be dulysigned by the authorized signatory and witnessed. Thereafter, that copyshould be scanned and uploaded by tenderer along with other biddocuments.iii Upload Annexure V (Drawings) under the digital signature as a token oftheir acceptance.iv Upload a scanned copy (in pdf or jpg format) ofa) Copies of valid PESO and BIS licence duly attested.b) Integrity Pact duly signed and witnessedc) Copy of PAN Cardd) Valid NSIC Registration Certificate [if applicable]e) Copy of the certificate stating that the vendor is a Micro and SmallEnterprises (MSEs) [if applicable]f) Copy of the certificate stating that MSEs is owned by Scheduled Caste(SC) or the Scheduled tribe (ST) entrepreneurs [if applicable]g) Certified copies of Registration certificate under DGTD, Central Excise& Central & State Sales Tax.h) Certified copies of Partnership Deed/ Memorandum & Articles ofAssociation & Certificate of registration with the Registrar of Companies’(if applicable).i) Copies of audited P & L A/c and Balance Sheet for the last three yearsj) Bankers Certificate indicating Credit worthiness (in value) of the firmk) OrganogramIn case no. of pages to be uploaded are more, then the same can also bezipped and uploaded.vOnline fill in information in Credential Form, Declaration Form.Additionally, EMD [if applicable] has to be submitted in physical form.B. Price bidOnline fill in the quotes and ED/CST/VAT information in the price bid form.The details of the price bid form has been provided as clause (27) of thisAnnexure I.Page 2 of 4

CRFQ No.: 1000182234Annexure IIGeneral Instructions to tenderers for E-Tendering6. Price bid of only those vendors shall be opened whose Techno-Commercialbid is found to be acceptable to us. The schedule for opening the price bidshall be advised separately.7. Directions for submitting online offers, electronically, against e-procurementtenders directly through internet:(i) Tenderers are advised to log on to the website (https://bpcl.eproc.in) andarrange to register themselves at the earliest.(ii) The system time (IST) that will be displayed on e-Procurement web pageshall be the time considered for determining the expiry of due date andtime of the tender and no other time shall be taken into cognizance.(iii) Tenderers are advised in their own interest to ensure that their bids aresubmitted in e-Procurement system well before the closing date andtime of bid. If the tenderer intends to change/revise the bid alreadyentered, he may do so any number of times till the due date and time ofsubmission deadline. However, no bid can be modified after the deadlinefor submission of bids.(iv) Once the entire process of submission of online bid is complete, thetenderers are required to go to option ‘own bid view’ through dashboardand take the print of the envelope receipt as a proof of submitted bid.(v) Bids / Offers shall not be permitted in e-procurement system after the duedate / time of tender. Hence, no bid can be submitted after the due dateand time of submission has elapsed.(vi) No manual bids/offers along with electronic bids/offers shall be permitted.8. Once the techno-commercial bids are opened, tenderers can see the list oftenderers who have participated in the bid by logging on to the portal undertheir user ID and password and clicking on “Other Bids” view. Subsequently,once the price bids are opened, tenderers can see the rates quoted by all theparticipating bidders using the same option.9. No responsibility will be taken by BPCL and/or the e-procurement serviceprovider for any delay due to connectivity and availability of website. They shallnot have any liability to tenderers for any interruption or delay in access to thesite irrespective of the cause. It is advisable that tenderers who are not wellconversant with e-tendering procedures, start filling up the tenders muchbefore the due date /time so that there is sufficient time available with him/herto acquaint with all the steps and seek help if they so require. Even for thosewho are conversant with this type of e-tendering, it is suggested to complete allthe activities ahead of time. It should be noted that the individual bid becomesPage 3 of 4

CRFQ No.: 1000182234Annexure IIGeneral Instructions to tenderers for E-Tenderingviewable only after the opening of the bid on/after the due date and time.Please be reassured that your bid will be viewable only to you and nobody elsetill the due date/ time of the tender opening. The non availability of viewingbefore due date and time is true for e-tendering service provider as well asBPCL officials.10. BPCL and/or the e-procurement service provider shall not be responsible forany direct or indirect loss or damages and or consequential damages, arisingout of the bidding process including but not limited to systems problems,inability to use the system, loss of electronic information etc.In case of any clarification pertaining to e-procurement process, the tenderermay contact the following agencies / personnel:1. For system related issues :a. M/s.C1 India at contact no. 022-66865600/ 01/ 02 followed with a e-mail to id nitin.salvi@c1india.comb. Procurement Manager of M/s. BPCL at contact no. 022-24176415followed with a e-mail to ID sharmaam@bharatpetroleum.in2. For tender related queries:a. Mr. A M Sharma of BPCL at contact no. 022-24176415/24176423followed with an email to ID sharmaam@bharatpetroleum.inb. Mr. Sandeep Srivastava of BPCL at contact no. 022-24176076followed with an email to ID srivastavasan@bharatpetroleum.inThe responsible person of the tender is Mr. Sandeep Srivastava of BPCL atcontact no. 022-24176076.Page 4 of 4

CRFQ NO. 1000182234ANNEXURE IVTECHNICAL SPECIFICATIONSTECHNICAL SPECIFICATIONS OF SELF CLOSING TYPE VALVESFOR LPG CYLINDERSA. Specifications1. Self Closing Type Valves For LPG Cylinder:LPG Cylinder Valves, 25.6 mm Self Closing Type with Vertical outlet andincorporating vertical spring actuated spindle as detailed in Appendix - 4 (Page 6 ofIOC" Implementation Report " dated March,1985. Valves inlet and outlet confirmingto Kosan Teknova Drawing No.186N502 dated 23.1.1985 (Revision K) and valveoutlet fitted with "Joint Packing" as per Drawing No. 24226-B dated 03-01-2005attached herewith. Valves should conform to Bureau of Indian StandardsSpecifications IS: 8737 (Latest Revision) and duly inspected and certified / markedby BIS. The material of the valve housing (Valve body) shall comply with thephysical & chemical properties of Brass as per IS: 8737 latest and the same shall bemandatory.The dimensional details as well as materials of construction for all other componentsof all the valves supplied would be in conformity with the Kosan Teknova Drawingsspecified above and maintenance of “Inspection and Quality Assurance Formats".Marking on the Valves shall be as per Drawing No.VALVE A1 Dated :12.03.2003attached herewith.2. Plastic Thread Protector Cap:This cap shall be without markings and dimensions as per drawing (Page 16Appendix 4 (X) of “Implementation Report").3. Safety Cap:(a) Safety Caps shall be of " DUPONT DELRIN 500 P/900P/1700P, CELCON M-90 /M-140 OR TENAC-5010 (all virgin materials) suitable for fixing at the outlet ofSelf Closing Compact Valve (25.6 mm dia) as per our drawing no:LPG:D:DELRIN CAP Rev 0 with Stainless steel spring clip and soft twin Polypropylene (PP) multi fibre chord of adequate strength. Material for safety capsshould be of Virgin Material.(b) The safety caps shall be procured from the following approved vendors only:1. M/S. Cris Cap Safety Equipments.A-4, Sheel Apartments, 16 th Road, Bandra, Mumbai – 400 050.2. M/S. Nirmal Plastics Industries,A To Z Industrial Estate, Unit No. 116Ganpat Rao Kadam Marg, Lower Parel, Mumbai – 400 013.Signature :Seal :Page 1 of 5

CRFQ NO. 1000182234ANNEXURE IVTECHNICAL SPECIFICATIONS3. M/S. Reliable Enterprises56, Rajaji Industrial Estate, Ground Floor, P.K. Road,Mulund (West), Mumbai – 400 080.4. M/S. India Plastic IndustriesNear Sagaon, Opp. New Sharda Mill,Midc Manpada Road, Dombivali (East), Thane (Dist.) – 421 201.5. M/S. Sneha Plastics,Plot No. 1, Satellite Industrial Estate, Balanagar,Hyderabad – 500 037.6. M/S. Techno Industries,Ae-456, Salt Lake City, Kolkatta – 647. M/S. Super Plastic IndustriesGala No 2, Mhatre Pada, Opp. W-118, Midc Phase II,Near Technocraft Co., Sonarpada, Dombivali (E) – 421 204.8. M/S. N.G. Trexim Pvt Ltd29-B, Ravindri Sarani, Room No. 1 E, 3 Rd Floor,Kolkatta – 73.9. M/S. Reliable EngineersUnit No. 23, Ashok Industrial Estate, L.B.S. Marg, Mulund (W)Mumbai 400 080.10. M/S. Jagdamba Engineering Pvt. LtdD 165, Phase Iii, Ida Jeedimetla, Rr Dist. (A.P) – 500 055.11. M/S. Shint Plastics.5e-2, N.I.T. Faridabad 121 001.12. M/S. Unison Auto IndustriesPlot No. D-15, Phase II, MIDC Industrial Area,Dombivali (E) – 421 203. Dist. Thane (India)13. M/S Parasnath Enterprise31, Rajendra Park, Pusa Road,New Delhi – 110 06014. M/S Adinath IndustriesC-9/2, DLF City, Phase I, Sukhchaen Marg,Gurgaon (Haryana)-12200215. M/S Indo Plast Industries,W-189, M.I.D.C., Phase II, Dombivli (East),Distt : Thane (M.S.) - 421 204Signature :Seal :Page 2 of 5

CRFQ NO. 1000182234ANNEXURE IVTECHNICAL SPECIFICATIONS16. M/S Nirmal ProductsA15, Shreyas Industrial Estate, Off Western Express Highway,Near Jay Coach, Goregaon (E),Mumbai – 40006317. M/S P.R. PlastoB-1-15, Ram Girdhar Industrial Estate,Ulhas Nagar, Thane – 42100318. M/S Prasad PlasticsU-83, MIDC Industrial Area, Hingna Road,Nagpur-440016119. M/S Reliable Plastics52, Raja Industrial Estate, Off PK Road,Mulund (W), Mumbai – 400 08020. M/S Techno ImpexHelabhattala, Hatiara Road, Opp. Sagar Gramin Bank,Kolkata – 700 059Any addition to the list of approved vendors will be suitably advised by BPCL.(c) Safety Cap for Self Closing compact Valve for LPG Cylinder complete with springand soft twin nylon chords with knot fused to ensure that it does not get openedunder any circumstances. Safety Caps should satisfy the entire requirementincluding material Specifications given in the said Drawing.(i)(ii)(iii)(iv)(v)(vi)Cap must withstand pneumatic pressure of 17 kgf. / sq. cm.Words Bharat GAS should be embossed on the top of the cap.Cap spring should be tempered in such a way that it should facilitate easyfitment / removal and it should not become loose after at least 1000operations of opening and closing.Nylon Cord: Twin Cord of diameter 2.50 mm (combined) and 175 +5/-0 mmlong.Spring: Stainless Steel.Each Cap should have manufacturer's identification mark embossed on it inaddition to arrow mark &. Month and Year of manufacturing should bemarked on the cap.(vii) The minimum weight of 10 Safety Caps (bare, caps without spring andchords) picked up at random shall be minimum 75 gms.(viii) Safety Caps shall be moulded using Automatic Injection mouldingmachines only and not by semi automatic / hand moulding machines.Above requirements to be informed to your respective cap vendors.(ix)If it is deemed necessary the samples of Cap Assembly and or Delrin aswell as spring material used would be tested by us in a laboratory of ourchoice and the results so obtained would be final and binding on you.Signature :Seal :Page 3 of 5

CRFQ NO. 1000182234ANNEXURE IVTECHNICAL SPECIFICATIONS4. Joint Packing (‘O’ Ring) / Rubber Gasket shall be procured from thefollowing approved vendors only:1. M/s Amrit EnterprisesD-235, Ansa Industrial Estate, Saki Vihar Road, Andheri (E)Mumbai – 400 072. M/s Bharat rubber WorksGala No.B-5 to B-7, Shree Ganesh Industrial House,W.T. Patil Marg, Near Mahindra Show Room,Chembur, Mumbai – 400 071.3. M/s Jorss EnterprisesD-101, Ansa Industrial Estate, First Floor, Saki Vihar Road,Mumbai 400 072.4. M/s Kumar Enterprises,D/213, Ansa Industrial Estate, Saki Vihar Road, Andheri (E),Mumbai – 400 0725. M/s Indian Rubber WorksGala No. F-2, Shri Ganesh Industrial House, NearMahindra Showroom, W.T. Patil Marg, Chembur,Mumbai - 400 071.6. M/s S.K. Rubber PartsSai Krupa Chawl, Hanuman Nagar (Ashok Nagar),Hill No. 3, Kurla (West), Mumbai – 400 0707. M/s Sarathy Rubber Industries,70, Pillar Koli Street, Redhills, Chennai – 600 052Any addition to the list of approved vendors will be suitably advised by BPCL.B. Terms & Conditions for Transfer of Kosan Teknova Technology1. Transfer Of Technology :Technology transfer shall be offered to new successful tenderers. The transfer issubject to a non refundable ‘Technology Transfer Fee’ of Rs 2 lacs and executionof a ‘Know-how & Technical Assistance Agreement’ with M/s. Indian OilCorporation Limited by the prospective manufacturer. Payment of TechnologyTransfer fees shall be applicable to all successful new tenderers irrespective of theirbeing NSIC units or Public Sector Enterprises.Signature :Seal :Page 4 of 5

CRFQ NO. 10001822342. Implementation Of Technology :ANNEXURE IVTECHNICAL SPECIFICATIONSThe successful new tenderers will be required to implement the technology in allrespect within 90 days from the date of advice by BPCL/IOCL and shall be requiredto establish necessary manufacturing / Inspection facilities to the satisfaction ofBPCL/IOCL, failing which, necessary action may be initiated to cancel theirenlistment and tender submitted shall be deemed to be null and void. EMD as well asthe Technology Transfer Fee in such case will be forfeited.3. Changes In Technology :Any changes, which may be incorporated in the technology by IOCL/BPCL from timeto time, shall be deemed as being part of the technology and binding on thesuccessful tenderers.4. Use Of Technology:IOCL/BPCL reserve the right to bar any tenderer who has obtained technologytransfer, from the use of technology at its discretion and any subsequent use of thesame by the tenderer shall be treated as unauthorised and illegal.Signature :Seal :Page 5 of 5

CRFQ No. 1000182234ANNEXURE VITERMS & CONDITIONS OF AGREEMENTTERMS & CONDITIONS OF AGREEMENT FORPROCUREMENT OF SC VALVES1. MATERIAL TO BE SUPPLIED(a) The successful tenderers on whom Contract/ Purchase Order is placedshall duly supply SC Valves manufactured as per IS:8737 (latest revision)and BPCL drawing to the Corporation as per the rate and deliveryschedule specified in the Contract/ Purchase Order placed by theCorporation on the successful tenderer.(b) The successful tenderer shall ensure that the SC Valves meant for supplyto BPCL are manufactured following the quality control/inspectionprocedures prescribed by BIS & PESO and/or any written instructionsgiven by BPCL.(c) BPCL reserves the right to refuse accepting the delivery of SC Valves thathave been manufactured more than 4 months before the date of supply.(d) This is basically a rate contract and quantities are not guaranteed.However, BPCL reserves the right to increase the contract quantityup to 30% of the original contract quantity and the successfultenderer shall be bound to accept such increase in contract quantity.Any increase over and above the 130% of original contract quantity shallbe done only after obtaining written confirmation from the successfultenderer.2. SUPPLY AND PERFORMANCE GUARANTEE(a) The successful tenderer, within 10 days of placement of Letter of Intentshall agree to deposit an amount of Rs. 2 lakhs or 5% of the order value,whichever is lower, with BPCL for Supply and Performance Guarantee.This amount shall have to be deposited by way of crossed A/c Payeedemand draft drawn on any Nationalised or scheduled bank in favourof M/s. Bharat Petroleum Corporation Ltd and payable at Mumbai. Nointerest is payable by BPCL on the amount for Supply and PerformanceGuarantee so collected. Those successful tenderers desiring to convertEMD to Supply & Performance Guarantee can send a request letter for ourconsideration.(b) Supply and Performance Guarantee shall be refunded only after the expiryof the guarantee period of the SC Valves supplied by the successfultenderer. BPCL shall be entitled to deduct from this amount any loss ordamage which BPCL may be put to by reason of any act or defective SCValves, Price Reduction (PR) or any other liabilities or default recoverableby BPCL from the successful tenderer and to call upon the successfultenderer to maintain the amount at the original level by making furtherdeposits.Page 1 of 19

CRFQ No. 1000182234ANNEXURE VITERMS & CONDITIONS OF AGREEMENT3. SET OFFAny sum of money due and payable to the successful tenderer (including thesupply and performance guarantee amount returnable to him) under theContract, may be appropriated by BPCL against any claim arising under theContract against the successful tenderer.4. PRICE(a) The basic price payable per SC Valve in a particular month shall becalculated by adding escalation (or subtracting de-escalation, as the casemay be) for that particular month to the quoted/negotiated basic price andshall include all applicable duties, taxes (except Excise duty andCST/VAT), transit insurance (if Successful tenderer desires to do so),loading & unloading charges and any other incidental charges and suchother duties and levies as may be imposed for sale and delivery of the saidValves. Only Excise Duty and CST/VAT as applicable and declared by thesuccessful tenderer, transportation charges quoted, and octroi asapplicable shall be payable extra.(b) Price escalation/de-escalation in the basic price of SC Valve shall bebased on the changes in the Basic price of High Grade Zinc at Tarapur(Mumbai) as declared by M/s. Hindustan Zinc Ltd., and basic price ofCopper Cathode (Full) at Tarapore as declared by M/s Hindustan CopperLtd. and determined as per the following formula:For every one rupee increase or decrease or part thereof in thebasic price of Copper Cathode and High Grade Zinc per kg atMumbai, the unit basic price of the SC Valve will increase ordecrease proportionately @ Rs. 0.14 (fourteen paisa) and @Rs. 0.10 (ten paisa) respectively plus applicable Excise Duty onSC Valve @ Excise duty rate applicable for SC valve lessExcise Duty rate on SC Valve actually payable by thesuccessful tendererFor the purpose of calculating escalation/de-escalation, the difference inbasic price of High Grade Zinc and Copper Cathode per kg at Mumbai aswell as Excise duty as applicable for SC Valves less Excise Duty rate onSC Valves actually payable by the successful tenderer as on 01/03/2013and that prevailing on the first day of each qualifying month shall beconsidered.(c) Price escalation/de-escalation shall be determined every month, basedon the High Grade Zinc and Copper Cathode (Full) prices & rate of ExciseDuty on Valves ruling as on the 1 st day of the month that is one previousto that particular month.(d) The above mentioned escalation/de-escalation formula takes into accountthe effect of changes in the price of high grade zinc and Copper CathodeFull as well as excise duty on SC Valve. Escalation/ de-escalation on anyother account will not be permitted.Page 2 of 19

CRFQ No. 1000182234ANNEXURE VITERMS & CONDITIONS OF AGREEMENT5. TAXES AND DUTIES:Taxes, duties, freight and octroi shall be payable over and above the basicprice as follows:5.1. Excise duty:(a) Excise duty extra as applicable at the time of delivery within scheduleddelivery period will be payable by BPCL against documentary evidence.Successful tenderer shall mention in their offer, the percentage of exciseduty applicable at present. Any upward variation in excise duty rates,beyond the contractual delivery period, shall be to successful tenderer’saccount.(b) In case Excise Duty is not applicable at present but becomes applicable infuture, the same will be borne by successful tenderer. Excise duty due tochange in turnover is not payable.(c) CENVAT credit available to the successful tenderer on various inputs maybe availed by the tenderer by following necessary procedures andcompleting all the formalities, documentations etc.The CENVAT credit availed by the tenderer need not be passed on to theCorporation separately. However, if the tenderer for any reason fail toavail this CENVAT credit on various inputs, BPCL shall in no way assumeany responsibility for the same.5.2. Sales Tax/VAT/GST:(a) Sales Tax as applicable at the time of delivery within scheduled deliveryperiod will be payable by BPCL. Successful tenderer shall give details oflocal sales tax (VAT) and central sales tax currently applicable in theiroffer.(b) Input VAT Credit may be claimed by BPCL, wherever applicable.Successful tenderer shall submit the TAX invoice that shall enable theCorporation to claim the VAT set off/ITC Credit. In the event of VAT setoff/ITC credit become non claimable due to non-adherence ofdocumentation at tenderers end and/or misinterpretation of statuteby the tenderer, the differential (VAT set off/ITC) shall be claimedfrom all such tenderers.(c) In the event the successful tenderer is charging VAT for suppliesmade to LPG plant(s) situated in a particular state where VAT set off/ITC credit is available to BPCL and later the Government of anotherstate levies CST on those supplies on the ground that the productsupplied to BPCL has arisen due to inter-state movement, thenBPCL shall be not liable to pay such CST.Page 3 of 19

CRFQ No. 1000182234ANNEXURE VITERMS & CONDITIONS OF AGREEMENT5.3. Freight and Octroi:(a) Freight: Freight shall be payable after receipt of the Material(s) at the siteas per the firm freight charges quoted by the successful tenderer in theprice bid.(b) Octroi and entry taxes, if any, shall be reimbursed by BPCL at actualsafter receipt of the Material(s) at the Site against the submission oforiginal documentary evidence for proof of payment of the related octroiand entry taxes, as the case may be.5.4. New Statutory Levies:All new statutory levies leviable on sale of finished goods to owner, ifapplicable are payable extra by BPCL against documentary proof.5.5. Variation in Taxes/Duties:Any increase/decrease in all the above mentioned statutory levies on the dateof delivery during the scheduled delivery period on finished materials will beon BPCL's account. Any upward variation in statutory levies after contractualdelivery date shall be to successful tenderer’s account.Parties shall have to produce Gazette notification, proof showing that dutycharged is totally on account of excise rate and/or Sales Tax and/or VATrevision and not due to any change in assessable value or otherwise, andinvoice us accordingly. Same principle will be observed for de-escalation also.However, any increase in the rate of Sales tax or VAT or Excise Duty on SCValves due to change in the annual Turn-over or full/partial withdrawal ofsales tax or VAT or excise duty concession to the successful tenderer shallnot be reimbursed.6. PAYMENTThe following documents should be submitted along with the invoice:(a) Face Sheet(b) Invoice, mentioning the actual date of receipt of consignment at thedestination.(c) Copy of delivery challan (that includes photocopy, scanned copy sent byemail and/or fax copy) duly acknowledged by the location(d) Lorry Receipt(e) Central Excise Gate Pass –Invoice(f) Packing list(g) Octroi Receipt, if applicablePayment terms shall be 15-days which implies that payment shall bereleased by BPCL within 15 (fifteen) working days, on ‘best-effort’ basis after15 days of receipt of invoice along with all enclosures as mentioned above.The payment shall be done through National electronic fund transfer (NEFT).Page 4 of 19

CRFQ No. 1000182234ANNEXURE VITERMS & CONDITIONS OF AGREEMENTHowever, in case the successful tenderer delivers a consignment that isfully/partially not accepted by the plant, then payment for such quantity that isnot accepted by the plant shall be passed only after the defective lot iscleared to the satisfaction of the plant.7. QUALITY CONTROL / SUSPENSION(a) The successful tenderer is required to strictly adhere to the qualitycontrol/inspection procedures stipulated by Bureau of Indian Standardsand Petroleum & Explosive Safety Organization, and advice given by theCorporation and Oil Industry Technical Committee (OITC) from time totime.Stage-wise inspection should be carried out as per scheme of testing ofBIS. Manufacturer should employ manpower required at each stage ofinspection such that they at least have minimum specifiedskills/qualifications.The in-charge of quality control & production department and qualitysupervisors should possess minimum qualification of diploma inEngineering. Information should be promptly forwarded to BIS and PESOin case these key persons looking after critical aspects of production andquality control of SC Valves are changed. Any change in the Plant &Machinery should be with prior approval of BIS and PESO.(b) Without prejudice to the other provisions of the Contract, BPCL reservesthe right to order suspension of production and supplies of the SC Valvesby the successful tenderer in case any lapse in quality is detected bymembers of OITC/LERC or by officers/ representatives of BPCL, or if anylapse is reported by any statutory authority, quality complaint from anysource, malpractice detected by any authority etc. at any time during thecurrency of the Agreement.(c) Such suspension orders will be intimated in writing by fax and/orRegistered Post either by the Corporation or by OITC to successfultenderer. On receipt of suspension order successful tenderer shall carryout detailed root-cause analysis for failure of the VALVE/quality problem.Corrective and preventive actions to be taken for a particular type of failureshould be identified and implemented by the successful tenderer. Thesuccessful tenderer shall submit an action-taken report, duly verified byBIS, to BPCL. BPCL shall revoke the suspension based on the adequacyof this action-taken report.The successful tenderer will be required to complete all actions necessaryto obtain clearance from Corporation/OITC for resumption of productionand despatch at the earliest but not later than 30 days from the date ofsuspension.Page 5 of 19

CRFQ No. 1000182234ANNEXURE VITERMS & CONDITIONS OF AGREEMENTIf request for the clearance from Corporation/ OITC is not applied for withinthe said period of 30 days, the Corporation shall have the rights solely atits discretion to cancel the remaining order quantity and forfeit the supplyand performance guarantee amount (as specified in para 2(c)), withoutprejudice to any other right as may be available to the Corporation bothunder law and the contract terms contained in this agreement for therecovery of the damages.(d) Despite the order of suspension, if the successful tenderer producesand/or despatches any SC VALVE, the Corporation shall be entitled torefuse taking delivery of such consignments and the successful tenderershall not be entitled to claim any damage or compensation for any lossthat may occur to him, from BPCL on account of refusal to accept suchconsignment. In such cases BPCL shall take necessary action which maybe deemed fit against the successful tenderer.(e) Whenever the successful tenderer is under suspension, the call-off/allocation for the suspended party may be pruned to the extent ofundelivered quantity against that call off/allocation at the sole discretion ofBPCL. Extra cost, if any, borne by BPCL while procuring (from othersuppliers) and/or placing such shortfall quantity to the shortsuppliedplant, as outlined above, shall be recovered from thedefaulting vendor as per clause 11 below.(f) If the successful tenderer is under suspension at the start of a month/timeof placing call-off or PO, then the quantity calculated based on thefortnightly average order quantity (total order quantity/26) for the numberof fortnight or part thereof for which the party continues to be undersuspension, may be pruned at the sole discretion of BPCL. Extra cost, ifany, borne by BPCL while procuring (from other suppliers) and/orplacing such pruned quantity, as outlined above, to the designatedplant shall be recovered from the defaulting vendor as per clause 11below.(g) If the successful tenderer is a common supplier for two or more OMCs,and in the event of their suspension by one OMC, then it shall beconstrued as suspension by BPCL also. However revocation will be doneby individual OMC. The pruning of quantity will be applicable as per (e) &(f) above for the period of suspension.8. DELIVERY SCHEDULE / REVISION BEFORE EXPIRY OF DELIVERYSCHEDULE:(a) Based on the actual requirements, BPC will be placing the call-offs (alsocalled PO or allocations) from time to time. The successful tenderershall be bound to accept call-offs up to 130% of the prorata quantity(prorata quantity = contract quantity/12). In case BPCL requiresPage 6 of 19

CRFQ No. 1000182234ANNEXURE VITERMS & CONDITIONS OF AGREEMENTadditional supplies (over and above the said 130% prorata level) duringany period , then it can place call-offs for such additional quantities aftergetting a written confirmation from the successful tenderer.(b) The successful Tenderer shall supply SC Valves strictly in accordancewith the delivery schedule mentioned in the call-offs/PO/ allocation. Thesuccessful Tenderer shall note that the date of receipt of SC Valves at thedestination i.e. the Location of the Corporation as advised by theCorporation shall be considered as the date of completion of the supply asper the Order. In short the actual delivery shall mean the date of receipt ofSC Valves at the location. Successful tenderer shall have to furnish a‘Delivery Completion Report’ on monthly basis in the format given byBPCL along with a copy of proof of receipt of material/receipted deliverychallans, for all supplies made during that month, within 5 days of last datefor delivery indicated in the call offs / PO.(c) In the event of the successful Tenderer anticipating difficulty to meet thedelivery schedule for reasons not attributable to him, the successfultenderer should submit a written request for extension, in case he desiresthe extension, explaining the reasons for the delay. It will be theCorporation’s sole discretion to accept or reject the request. TheCorporation will evaluate the request of the successful Tenderer and incase the Corporation is satisfied, the Corporation may grant a suitabletime extension up to a maximum of one month with the applicablePrice Reduction @1% for each fortnight of extension to a maximumof one month extension with 2% and advise the revised deliveryschedule, in writing. The decision of the Corporation in this regard will befinal and binding on the successful Tenderer.(d) Payment for supplies shall be made at the rate on which calloffs/PO/allocationshave been issued and date of delivery shall beirrelevant for the purpose of deciding the rate of SC Valves. This shall alsoapply to cases where time extension for delivery has been granted byBPCL.9. FAILURE AGAINST DELIVERY SCHEDULE AND PRUNING &REALLOCATION FOR QUANTITIES UNDELIVERED:(a) BPC shall review the supply position after completion of the DeliverySchedule. If the successful Tenderer fails to adhere to the said DeliverySchedule as per para 8(a) above or Revised Delivery Schedule which maybe given as per 8(c) above, the following provisions shall apply:(i) BPC may prune and reallocate the quantities short supplied by theSuccessful Tenderers who could not meet the schedule given.(ii) Alternatively BPC may consider accepting late delivery ofconsignment already dispatched by the Successful TendererPage 7 of 19

CRFQ No. 1000182234ANNEXURE VITERMS & CONDITIONS OF AGREEMENTbefore the scheduled date of delivery, based on request by suchSuccessful Tenderer who could not meet the schedule given. Paymentin such cases shall be done as per clause 8(d) above.(iii) In the event of some of the Successful Tenderers failing to completethe supply even after grant of time extension, BPCL shall have thediscretion to prune all such undelivered quantities and reallocate toother suppliers as decided by BPC. In such case, PR as applicablefor both viz. extension as well as non-supply shall be recovered.(iv)Extra cost, if any, borne by BPCL while procuring (from othersuppliers) and/or placing such shortfall quantity to the shortsuppliedplant, as outlined in (i) & (iii) above, shall be recoveredfrom the defaulting vendor as per clause 11 below.(b) The limitation on order quantity will not be applicable for the reallocation ofpruned quantities.(c) BPCs’ decision in regard to Pruning & Reallocation on case to case basisand the methodology followed shall be final.10. PRICE REDUCTION CLAUSE FOR FAILURE TO SUPPLY AS PERSCHEDULE(a)In the event of full or partial failure to supply as per slated/revisedDelivery Schedule given under (8) above, Price Reduction @ 5% of theNDP shall be levied on the entire undelivered/late delivered quantity.(b)(c)In the event of time extension granted by BPC beyond the originaldelivery schedule, Price Reduction @1% per fortnight to a maximum of2% of NDP, i.e. only one month’s extension will be granted. In case offailure to supply even after grant of extension, price reduction@5% OF NDP shall be levied over and above the price reductionlevied against granting time extension. In other words, maximumprice reduction in such cases can go up to a maximum 7%.Successful tenderer shall not be entitled to claim waiver from PRbecause of the Prunning & Re-allocation of the short suppliedquantities as described in (9) above.11. RISK PURCHASE(a)In case the Successful tenderer fails to supply the material as per thedelivery schedule/revised delivery schedule due to any reasonwhatsoever, including suspension, BPCL reserves the right toprocure similar material at the Successful tenderer’s risk, cost andresponsibility from other sources or even from the same tenderer (onsuccessful tenderer’s request and at BPCL’s sole discretion). Thesuccessful tenderer shall have to bear the differential cost betweenPage 8 of 19

CRFQ No. 1000182234ANNEXURE VITERMS & CONDITIONS OF AGREEMENTwhat would have been payable to him/her and the cost actually paid byBPCL for such procurement and/or placement of such shortfall quantityto the short-supplied plant.(b)(c)(d)In case the party is under suspension at the start of the month, noorders will be released. However, proportionate order quantity due fromthe party, as described in clause 7(f) above, shall be procured fromother parties under risk purchase.Such penalty shall be levied over and above the PRICE REDUCTIONrecoverable from the party on account of such non-delivery of suchmaterial. However if the successful tenderer informs BPCL abouthis/her inability to supply the material within 7 days of placing of calloff/POthen no PRICE REDUCTION for non-supply shall be levied.However, successful tenderer shall still be liable to pay the differentialrisk purchase amount mentioned above.If due to any breach committed by the Supplier, the order is terminated,the Supplier will be liable to make good the loss or damage suffered bythe BPCL in line with clause (a) above.12. RECOVERY OF OUTSTANDING AMOUNTS:Whenever, any claim against Successful Tenderer for payment of asum of money arises out of or under the contract, BPCL shall beentitled to recover such sums from any sum then due or when at anytime thereafter may become due from the Successful Tenderer underthis or any other contract with BPCL and should this sum be notsufficient to cover the recoverable amount of claim(s), the successfultenderer shall pay to BPCL on demand the balance remaining due.It is also agreed and understood that for the purpose of calculating thedamages recoverable, it will be assumed that the contract continued toremain valid even after expiry of the contract period and BPCL canrecover such amounts from the pending bills of/Supply andPerformance Guarantee amount deposited by the SuccessfulTenderer.13. FORCE MAJEURE(A) Definition: The term “Force Majeure” means any event orcircumstance or combination of events or circumstances that affectsthe performance by the successful tenderer of its obligations pursuantto the terms of this Agreement (including by preventing, hindering ordelaying such performance), but only if and to the extent that suchevents and circumstances are not within the successful tenderer’sreasonable control and were not reasonably foreseeable and theeffects of which the successful tenderer could not have prevented orPage 9 of 19

CRFQ No. 1000182234ANNEXURE VITERMS & CONDITIONS OF AGREEMENTovercome by acting as a Reasonable and Prudent person or, by theexercise of reasonable skill and care. Force Majeure events andcircumstances shall in any event include the following events andcircumstances to the extent they or their consequences satisfythe requirements set forth above in this Clause(i)(ii)(iii)(iv)(v)(vi)the effect of any element or other act of God, including anystorm, flood, drought, lightning, earthquake, tidal wave, tsunami,cyclone or other natural disaster;fire, accident, loss or breakage of facilities or equipment,structural collapse or explosion;epidemic, plague or quarantine;air crash, shipwreck, or train wreck;acts of war (whether declared or undeclared), sabotage,terrorism or act of public enemy (including the acts of anyindependent unit or individual engaged in activities infurtherance of a programme of irregular warfare), acts ofbelligerence of foreign enemies (whether declared orundeclared), blockades, embargoes, civil disturbance,revolution, rebellion or insurrection, exercise of military orusurped power, or any attempt at usurpation of power;radioactive contamination or ionizing radiation;(B) Notice and Reporting:(i) The Successful tenderer shall as soon as reasonablypracticable after the date of commencement of the event ofForce Majeure, but in any event no later than seven (7) daysafter such commencement date, notify the BPCL in writing ofsuch event of Force Majeure and provide the followinginformation:(a)(b)(c)Reasonably full particulars of the event or circumstance ofForce Majeure and the extent to which any obligation willbe prevented or delayed;such date of commencement and an estimate of theperiod of time required to enable the successful tendererto resume full performance of its obligations; andall relevant information relating to the Force Majeure andfull details of the measures the successful tenderer istaking to overcome or circumvent such Force Majeure.Page 10 of 19

CRFQ No. 1000182234ANNEXURE VITERMS & CONDITIONS OF AGREEMENT(ii)The Successful tenderer shall, throughout the period duringwhich it is prevented from performing, or delayed in theperformance of, its obligations under this Agreement, uponrequest, give or procure access to examine the scene of theForce Majeure including such information, facilities and sites asthe other Party may reasonably request in connection with suchevent. Access to any facilities or sites shall be at the risk andcost of the Party requesting such information and access.(C) Mitigation Responsibility:(i)(ii)(iii)The Successful tenderer shall use all reasonable endeavours,acting as a Reasonable and Prudent Person, to circumvent orovercome any event or circumstance of Force Majeure asexpeditiously as possible, and relief under this Clause shallcease to be available to the Successful tenderer claiming ForceMajeure if it fails to use such reasonable endeavours during orfollowing any such event of Force Majeure.The Successful tenderer shall have the burden of proving thatthe circumstances constitute valid grounds of Force Majeureunder this Clause and that it has exercised reasonable diligenceefforts to remedy the cause of any alleged Force Majeure.The Successful tenderer shall notify BPCL when the ForceMajeure has terminated or abated to an extent which permitsresumption of performance to occur and shall resumeperformance as expeditiously as possible after such terminationor abatement.(D) Consequences of Force Majeure. Provided that the Successfultenderer has complied and continues to comply with the obligations ofthis Clause and subject to the further provisions:(i)(ii)(iii)the obligations of the Parties under this Agreement to the extentperformance thereof is prevented or impeded by the event ofForce Majeure shall be suspended and the Parties shall not beliable for the non-performance thereof for the duration of theperiod of Force Majeure; andthe time period(s) for the performance of the obligations of theParties under this Agreement to the extent performance thereofis prevented or impeded by the event of Force Majeure shall beextended for the duration of the relevant period of Force Majeureexcept as provided herein.In the event of any shortfall in the delivery of the SC Valvesdue to occurrence of a force majeure event for a continuousPage 11 of 19

CRFQ No. 1000182234ANNEXURE VITERMS & CONDITIONS OF AGREEMENTperiod of 30 (thirty) days or more, Corporation may solely at theirdiscretion reduce the total contracted quantity, to the extent ofthe quantities of SC Valves which were required to be suppliedduring the existence of the force majeure conditions on aprorata basis, and the successful tenderer shall not be entitledto claim any damages from the Corporation on account thereof.Nor the Corporation shall be entitled to claim damages from thesuccessful tenderer on account of non-delivery of such SCValves pruned from the total contracted quantity(E) Force Majeure Events Exceeding 60 Days(i)If an event or series of events (alone or in combination) of ForceMajeure occur, and continue for a period in excess of 60consecutive days, then BPCL shall have the right to terminatethis agreement, whereupon the Parties shall meet to mitigate theimpediments caused by the Force Majeure event.14. RAW MATERIAL(a) The successful tenderer is exclusively responsible for procurement of allraw materials conforming to applicable specifications and quality to meetthe delivery schedule.(b) Rubber components and other bought-out items shall be thoroughly testedas per the test procedure given in the ‘Technova’ technology detailsprovided by IOCL. The successful tenderer is also required to furnish thefollowing information as and when required.a. Results of test carried out by rubber component manufacturersb. Results of rubber components tests carried out by the successfultendererc. Results of tests carried out by the successful tenderer on other boughtoutitems, if any.(c) In respect of the components which are required for the manufacture ofSC Valves, the successful tenderer shall from time to time during thecurrency of this Contract inform BPCL, the list of such items including thenames and addresses of the suppliers of such items and the measurestaken for ascertaining the quality assurance of such items.(d) BPCL reserves the right to specify the name of reputed/reliable/established vendors from whom raw materials and components shall beprocured. In such case, successful tenderer shall procure such rawmaterials and components from BPCL approved parties only.Page 12 of 19

CRFQ No. 1000182234ANNEXURE VITERMS & CONDITIONS OF AGREEMENT15. INSPECTION(a) Materials shall be inspected by BIS before dispatch of materials. As perstatutory requirement, the successful tenderer shall prepare TestCertificates, duly signed by BIS. However, arranging and providinginspection facilities is entirely successful tenderer’s responsibility and inno way shall affect the delivery schedule.(b) The inspection shall be carried out as per the relevant standards/scope ofinspection provided along with the Tender Enquiry/Purchase Order.(c) BPCL may, at its own expense, have its representative(s) witness any testor inspect the SC Valves/inspection gauges/test set-ups. In order toenable BPCL’s representative(s) to witness the tests/ inspections at thesuccessful tenderer's works, all required facilities shall be provided by thesuccessful tenderer at his costs. BPCL will advise the successful tendererin advance whether it intends to have its representative(s) be present atany of the inspections.(d) Even if the inspection and tests are fully carried out, the successfultenderer shall not be absolved from its responsibilities to ensure that theMaterial(s), raw materials, components and other inputs are suppliedstrictly to conform and comply with all the requirements of the Contract atall stages, whether during manufacture and fabrication, or at the time ofDelivery as on arrival at site or consumption, and during the defect liabilityperiod. The inspections and tests are merely intended to prima-faciesatisfy BPCL that the Material(s) and the parts and components complywith the requirements of the Contract. The successful tenderer’sresponsibility shall also not be anywise reduced or discharged becauseBPCL or BPCL’s representative(s) or Inspector(s) shall have examined,commented on the successful tenderer’s drawings or specifications orshall have witnessed the tests or required any chemical or physical orother tests or shall have stamped or approved or certified any Material(s).(e) Although material approved by the Inspector(s), if on testing andinspection after receipt of the Material(s) at the location, any Material(s)are found not to be in strict conformity with the contractual requirementsor specifications, BPCL shall have the right to reject the same and holdthe successful tenderer liable for non-performance of the Contract.16. TEST CERTIFICATES(a) As per statutory requirements, the successful tenderer shall prepare atleast three copies of test certificates for SC Valves to be supplied, dulysigned by the BIS. The distribution of copies is as under : First Copy - To the consignee (Plant) along with a list of Serialnumbers of SC VALVE despatched Second Copy - To LPG Equipment Department, SewreePage 13 of 19

CRFQ No. 1000182234ANNEXURE VITERMS & CONDITIONS OF AGREEMENT Third Copy - Vendor Copy(b) The successful tenderer is fully responsible for obtaining BIS testcertificates, for the SC Valves supplied by them, at their own cost. SCValves not accompanied by BIS test certificates shall not be accepted.17. PACKAGING :(a) Each lot of 200 Nos. (Two Hundred) Valves complete with Safety Capsand thread protection caps shall be packed with appropriate packing indealwood boxes of adequate strength with necessary hoop iron straps,both longitudinal and lateral, to withstand handling and transit damage byroad.(b) Batch No. of all Valves packed in one carton should be in sequence.(c) The boxes should be marked legibly / labelled with following information :(i) Item- SELF CLOSING LPG VALVE - KOSAN TEKNOVA TYPE.(ii) Quantity packed.(iii) Gross weight including wooden box.(iv) Manufacturer's Name/Full Address(v) Batch No./Nos.(vi) Date of packing.(vii) Month and Year of manufacture.A copy of the Packing Slip with complete details of the contents of the boxduly signed by the successful tenderer's authorised representative will beplaced inside each box. Another copy is to be enclosed to the despatchdocuments, recording the identification for the particular box.In case the receiving location reports that the Valves were received inbroken boxes, the Corporation reserves the right to recover Rs. 100 foreach such broken box as penalty.Further, any damage or loss of Valves because of poor quality packing orany other reason shall be recoverable from the successful tenderer asdecided by the Corporation.The Corporation at its discretion may authorize alternate packaging at therequest of the successful tenderer. Such authorization must be obtained inwriting, in advance.18. DESPATCHES(a) All the SC Valves will be despatched by the successful tenderer by roadonly, on freight pre-paid basis, in accordance with the instructions issuedby the Corporation from time to time. The consignments shall be sent onPage 14 of 19

CRFQ No. 1000182234ANNEXURE VITERMS & CONDITIONS OF AGREEMENTdoor delivery basis in full truck-loads/part truckload including unloadingand stacking at the receiving location.(b) The successful tenderer shall undertake transportation of SC Valves byroad only through established and reliable transporters.(c) The successful tenderer, in their own interest may take out insurancecover for each and every consignment to take care of any transit loss,damage, shortage etc at their own cost. No payment shall be made by theCorporation towards cost of insurance to the successful tenderer.19. GUARANTEE(a) The SC Valves shall be guaranteed by the successful tenderer for a periodof 24 months from the date of manufacture, against manufacturing defects.(b) In the event of manufacturing defects being detected at the time of deliveryor within the guarantee period, the successful tenderer will be directlyinformed in writing by the concerned Territory Office. The successfultenderer will have the choice to inspect the SC Valves at the concernedTerritory office or supply new SC Valves as replacement against thedefective SC Valves within thirty days of despatch of such intimation, attheir own cost. In case of joint inspection, the successful tenderer willhave to supply new SC Valves as replacement against the defective SCValves within 30 days from the date of joint inspection. If themanufacturer’s representative does not turn up for inspection within thetime stipulated by BPCL, the lot shall be treated as defective andaccordingly action shall be taken.New SC Valves will have to be supplied as replacement against thedefective Valves segregated at the time of delivery or during guaranteeperiod as above or else the full cost of such Valves will be recovered fromthe party. Additionally, a commercial penalty of Rs 5/- per defective SCVALVE shall be levied to cover the administrative cost. Rectification of SCVALVE shall not be permitted and defective SC Valves shall be crushedand scrap and will be retained by BPCL.20. TEMPORARY STOPPAGEIn case of temporary inability of BPCL to accept SC Valves, BPCL shall not beheld responsible for any loss/storage charges that the successful tenderermay have to sustain and the Company shall not be required to make anypayment towards the SC Valves already manufactured or any other paymenton account of inventory carrying cost.Page 15 of 19

CRFQ No. 1000182234ANNEXURE VITERMS & CONDITIONS OF AGREEMENT21. OBLIGATION TO SELL SC VALVES TO PUBLIC SECTORCORPORATION ONLY(a) The successful tenderer shall not engage in the manufacture, sale andsupply of 25.6 mm diameter SC Valves of ‘KOSAN TEKNOVA’ design andas per technology provided by BPCL to any individual, firm or anycompany other than the public sector oil companies engaged in Marketingof LPG during or after the currency of this Agreement.(b) The successful tenderer shall fulfil the commitments of the Corporation onfirst priority.(c) The successful tenderer shall also not export SC Valves of ‘KOSANTEKNOVA’ design manufactured by him except with the prior approval ofthe Corporation in writing.(d) Disposal of scrap arising out of the manufacturing process will not becovered under the above provisions. All scrap arising out of themanufacturing process including whole SC Valves which are rejected(while testing/ certification) and SC Valves rejected by the Corporation atthe successful tenderer’s premises may be disposed off by the successfultenderer, only after ensuring that such items are deshaped in the presenceof BIS Officer/ Corporation official so that the same cannot be used. Thesuccessful tenderer shall maintain proper records of all such rejections.22. TERMINATIONNotwithstanding anything contained in the Contract, BPCL reserves the rightto cancel the contract/purchase order or any part thereof through a writtennotice to the successful tenderer if:(a) The successful tenderer fails to comply with the terms of this purchaseorder/contract.(b) The successful tenderer becomes bankrupt or goes into liquidation.(c) The successful tenderer fails to deliver the goods on time and/or replacethe rejected goods promptly.(d) The successful tenderer makes a general assignment for the benefit ofcreditors.(e) A receiver is appointed for any of the property owned by the successfultenderer.(f) If it is established that the SC Valve manufacturer has been indulging inmalpractice/ manufacture of spurious SC Valves/ unauthorisedmanufacturing of SC Valves or on such other grounds that is consideredby the Corporation to be in contravention to the contractual obligation.The Corporation’s right to so terminate the contract shall be withoutprejudice to any other right and remedy available against the successfulPage 16 of 19

CRFQ No. 1000182234ANNEXURE VITERMS & CONDITIONS OF AGREEMENTtenderer including the right for recovery of damages if any from thesuccessful tenderer, and in the event of the Corporation so terminatingthe contract, the Corporation shall not be liable to pay any compensationor damages in consequence of such termination to the successfultenderer.(g) SC Valve units are supposed to have a good track record and clearcredential in the past. If any unit is found indulging in any unauthorisedactivities at any time, even in the past, then the Corporation shall have theliberty to take appropriate action as deemed fit including rejection,termination immediately on receipt of such information.Upon receipt of the said cancellation notice, the successful tenderer shalldiscontinue all work on the purchase order matters connected with it and shallsurrender incomplete SC Valves to the authorities designated by theCorporation. BPCL in that event will be entitled to procure the requirement inthe open market and recover excess payment over the successful tenderer'sagreed price if any, from the successful tenderer and also reserving to itselfthe right to forfeit the Supply and Performance Guarantee amount, made bythe successful tenderer against the contract. The successful tenderer is awarethat the said goods are required by BPCL for the ultimate purpose of materialsproduction and that non-delivery may cause loss of production andconsequently loss of profit to the BPCL. In this event of BPCL exercising theoption to claim damages for non-delivery other than by way of differencebetween the market price and the contract price, the successful tenderer shallpay to BPCL, fair compensation to be agreed upon between BPCL and thesuccessful tenderer. The provision of this clause shall not prejudice the rightof BPCL from invoking the provisions of price reduction clause mentionedabove.23. ASSIGNMENT/SUB-CONTRACTINGThe successful tenderer shall not sublet the contract or assign any part of theorder to any person/firm/company without prior written consent from theCorporation.24. ACQUIESCENCE OR WAIVERFailure of the Corporation to insist upon any of the terms or conditionsincorporated in the Purchase Order or failure or delay to exercise any rights orremedies herein, or by law or failure to properly notify successful tenderer inthe event of breach, or the acceptance of or payment of any goods hereunderor approval of design shall not release the successful tenderer and shall notbe deemed a waiver of any right of the Corporation to insist upon the strictperformance thereof or of any of its or their rights or remedies as to any suchgoods regardless of when such goods are shipped, received or accepted norshall any purported oral modification or revision of the order by BPCL act aswaiver of the terms hereof. Any waiver to be effective must be in writing.Page 17 of 19

CRFQ No. 1000182234ANNEXURE VITERMS & CONDITIONS OF AGREEMENT25. ARBITRATION(a) Any dispute or difference of any nature whatsoever, any claim, crossclaim,counter-claim or set off of BPCL/successful tenderer againstomission or on account of any of the parties hereto arising out of or inrelation to this Contract shall be referred to the Sole Arbitration of Director(Marketing) of BPCL as the case may be or to some officer of BPCL whomay be nominated by them.(b) In the event the Arbitrator being unable or refusing to act for any reasonwhatsoever, the said Directors of BPCL shall designate another person toact as an Arbitrator in accordance with the terms of the saidContract/Agreement. The Arbitrator newly appointed shall be entitled toproceed with the reference from the point at which it was left by hispredecessor.(c) It is known to the parties herein that the Arbitrator appointed hereunder isan employee of the Corporation and may be Shareholder of theCorporation.(d) The award of the Arbitrator so appointed shall be final, conclusive andbinding on all the parties to the contract and the law applicable toarbitration proceedings will be the Arbitration and Conciliation Act, 1996 orany other enactment in replacement thereof.(e) The language of the proceedings will be in English and the place ofproceedings will be Mumbai.(f) The parties hereby agree that the Courts in the city of Mumbai alone shallhave jurisdiction to entertain any application or other proceedings inrespect of anything arising under this Agreement and any Award orAwards made by the Sole Arbitrator hereunder shall be filed, if required, inthe concerned Courts in the City of Mumbai alone.26. CONFIDENTIALITY OF TECHNICAL INFORMATIONDrawing, specifications and details shall be the property of the BPCL andshall be returned by the successful tenderer on demand. The successfultenderer shall not make use of drawing and specifications for any purpose atany time save and except for the purpose of BPCL. The successful tenderershall not disclose the technical information furnished to or organized by thesuccessful tenderer under or by virtue of or as a result of the implementationof the Purchase Order to any person, firm or body or corporate authority andshall make all endeavours to ensure that the technical information is keptCONFIDENTIAL. The technical information imparted and supplied to thesuccessful tenderer by BPCL shall at all-time remain the absolute property ofBPCL.Page 18 of 19

CRFQ No. 1000182234ANNEXURE VITERMS & CONDITIONS OF AGREEMENT27. COMPLIANCE OF REGULATIONSSuccessful tenderer warrants that all goods/Materials covered by this orderhave been produced, sold, dispatched, delivered and furnished in strictcompliance with all applicable laws, regulations, labour agreement, workingcondition and technical codes and statutory requirements as applicable fromtime to time. The successful tenderer shall ensure compliance with the aboveand shall indemnify owner against any actions, damages, costs and expensesof any failure to comply as aforesaid28. JURISDICTIONThe parties hereby agree that the courts in the city of Mumbai alone shallhave jurisdiction to entertain any application or other proceedings in respect ofanything arising under this Agreement and any award or awards made by thesole arbitrator hereunder shall be filed in the concerned courts in the aforesaidcity only.29. VALIDITY OF THE CONTRACTThe total requirement shown in this tender enquiry is for the period of TwelveMonths from the date of finalisation of the tender.In case of any dispute in the interpretation of the terms and conditions of thetender, the decision of the Corporation in this matter shall be final and binding.Page 19 of 19