PART I EXTRAORDINARY

HOUSING DEPARTMENT

(R&UH.A2)

Housing Department – Navaratnalu–Pedalandariki Illu Programme – Phase-I –

Supply of Steel to the housing beneficiaries – Modified procedure for procurement of

Steel - Orders

[G.O.Ms.No.10, HOUSING (R&UH.A2) DEPARTMENT, 19^h November, 2021]

NOTIFICATION

Whereas, in the reference 1^st read above, Government have issued guidelines for

facilitating housing beneficiaries to get construction materials with their concern at lower

rates lesser than the market rates either from the approved agency (through reverse tendering

process) or any other agency of his/her choice

2.

Whereas, in the reference 2^nd read above, the Managing Director, A.P. State Housing

Corporation Limited, while bringing to the notice of the Government the difficulties in

procurement of Steel and the volatile nature of the price, has requested to modify procedure

for procurement of Steel.

3.

Government, after careful and detailed examination of the facts and circumstances in

the matter, hereby accord permission subject to the conditions mentioned below:

i. to procure Steel through the limited tender on e-Procurement platform – Service

module by empanelling the manufacturing companies duly adopting the procedure

detailed below.

ii.to float District-wise tender instead of Single tender with District schedules for

better price and competition among the bidders.

Registered No. HSE-49/2016

No.646

AMARAVATI, MONDAY, NOVEMBER 22, 2021

G.651

NOTIFICATIONS BY GOVERNMENT

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Conditions:

i. freezing the unit cost at Rs 1.80 lakh/per house

ii. black-listing the company in case of failure to supply the quantities as per

milestones of the Purchase Order (besides forfeiting the Earnest Money Deposit

(E.M.D))

iii. ensuring that the quality of Steel supplied conforms to I.S.I. standards

Procedure for procurement of Steel :-

i. Empanelment of Steel Companies :



Notification will be issued calling for fresh empanelment of Steel Manufacturing

Companies.



Any Company can apply for empanelment with non-refundable enrollment fee of

Rs 1.00 lakh.



The documents submitted by the Companies will be verified by the SLTC and

SLTC will recommend the Companies, who fulfill the criteria i.e. the production

capacity of the Company in any one month in last Financial year shall be 2 times

the quantity the Company willing to supply in a month to the APSHCL.



The recommended Companies will be inspected by the V&QC wing of APSHCL.

Companies will be exempted from inspection, which were already inspected

during previous empanelment process by the APSHCL.



Based on confirmation of the Credentials by the V&QC team, the Companies will

be empanelled.



Empanelment notification will be issued once in 3 months, to include any eligible

Company.



Empanelled Company can participate in the Bid from the Next month.



The empanelment process will be done through e-Procurement platform using the

Service Module.

ii. Concluding Agreement :



One time Agreement will be concluded with the empanelled Companies up to

June, 2023 duly collecting 1% EMD against the Value of quantity (with Present

rate), they are willing to supply per month to the Districts.



If the Company fails to supply the quantity as per the time given in Purchase

Order, the EMD will be forfeited and the Company will be removed from the

empanelled list.

iii. Calling of Limited Tender :



Every month demand will be collected from Districts between 20 ^th to 25 ^th based

on the discretion of the beneficiary willing to take department supply steel (at the

procurement rate plus Rs.1.50/- per Kg. additional which is collected towards

Godown rent, Testing of Steel etc).



Limited tenders will be floated through e-procurement platform for each District

separately based on the requirement furnished by the Districts.



Since the firms are empanelled, there will be no technical evaluation. Only Price

Bid will be offered with a period of 7 days.



Internal Bidding with Reverse Auction process among the empanelled Companies

will be completed by 5 ^th day of next month.

iv. Approval of Rate :



The MD, APSHCL may be authorized to approve the L1 price discovered duly

negotiating with companies if required.



Purchase orders will also be placed with the other Companies, who are willing to

supply at L1 price to other districts at Discovered/ Negotiated price.



Since the provision made for Steel in Rs.1.80 lakh estimate is not sufficient

(Rs.43/-per Kg) keeping the present rate in view, it may be permitted to approve

the procurement rate keeping only the local prevailing market price in to

consideration.

v. Placing of Purchase Orders :



Purchase orders will be placed against the Companies as per the rate approved to

each District to supply the Steel from 6 ^th to 20 ^th of every month.

vi. Payment for the supplied quantities :



Payment of 98% of value will be made to the Companies on receipt of

confirmation in Steel Online module developed in APSHCL web site and 2% after

satisfied test results as per IS code from approved institutions.

3)

The Managing Director, A.P. State Housing Corporation Limited, shall take necessary

further action in the matter, accordingly.

4)

This order issues with the concurrence of the Finance Department vide

U.O.No.FIN01-FMU0PC(WCDS)/64/2021-FMU-WDCWLETFH(C.No.1456756),

dated:

22.09.2021.

5)

This Order shall be published in www.apegazette.cgg.gov.in.

AJAY JAIN

SPECIAL CHIEF SECRETARY TO GOVERNMENT

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