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REGISTERED No. D (DN.)-72

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 186] NEW DELHI, SATURDAY, OCTOBER 23, 1982/KARTIKA 1, 1904

Separate Paging is given to this Part in order that it may be filed as a separate

compilation

889 GI/82

(1)

8"9 OI'"2—2

u

MINISTK\ OF COMMERCE

LUPORI TK \DE CONTROL

Public Notice No. 53--JTC(PN),K2

Nev\ Delhi, the 23id October, V)"2

Subject.—Licensing conditions in icspeet of imports of

goods and services undei the Yen Credit of ,r 6.0 billion loi lelecoinmunicitious Project (V) of '.he DGP&T

Flic N". IPC 23(34) 82.—I he terms ,<:id conditions governing the issue of import licence in icipect of imports of goods uml services under the Yen Ciedil ol v 6.0t) billion foi telecommunications Projecl(V) ol the IXiP&T ".\tended by the Overseas Economic Co-opeialion Fund (OECF) of Japan as given in Appendix to this Public Notice are notified foi inloim.'ition.

MAN! NARAYANSYVAM1, Chief Controller

of Imports & Exports

APPIND1X IO MlNIS'lR^ 01- COMMtRCF PUBIIC NOTICE NO 53—lTC(PN)/82

Dnted the 23id Octobei, 1982

Licensing Conditions in Respect of linpoits of Goods and Sej vices under the Yen Credit of y 6.0 Billion for Tele- communications Piojcet (.V) Extended by the Oversells Economic ( o-opeKiiion FuikUOhCF) ol Juptu).

Section I—Cicneuil Condition-. .

I(i) The Yen Credit of i 6.0 Billion extended b> the

Overseas Economic Co-opeiJIIOII Fund of Japan (OECF) for financing the impoit requirements of the Telecommuni- cations Project ol the fXiP&f is untied in favour of deve- loping eountriev Accordingly the goods .tod seivices to be procured undei this ciedit cun be imported liom Japan and all countiies enumerated in the list tit Aiine\me I 'Which will be eligible souiee 1.0111111 ies undei iho (.ledit.

Kii) Impon Licence!-.j under the Credit e.m be issued only foi such items and for such \alue as have been speci- fically denied by the DGTD/CCi ( ommittce. (he value of impoit JieeiKefs) issued under this credit should npt exceed Yen 6,600 million (,CII ).

Tbe >upee value of the linpoit licence shall be determined with reference to the exchange uite notified by the Depart- ment of Revenue (Customs) mid prevailing on the date of issue of the impoil licence and indicated in the body of the import licence's) us per paia 2 of the Public Notice No. 78-n'CfPN)/74 dnted the 6th June. 1974, issued by the CCI&E, which also enjoins tlmt the- Customs Aulhoiilies and the authorised deulers in loieijrn exchange w-ill make debits to -the value of the licence(s) .it the exchange rate, specified on the inipoit hcence(s). The licence vvill heai the superscription "'Japanese Yen Credit No. ID-P. 19". The first and second suflix to the licence code will be '"S/JC". This will also he repented in the letter fiom the CO&F forwarding the impoit licence to DGP&T, a copy of which .should b" endorsed to the Ministry of Finance. Department of Economic Affairs (T.ipai* Section),

I(iii) Import lieencefsl can be issued onh in favour of

DGP&T on CTF basis.

I(iv) Depending on the convenience of DGP&T moie than one import licence may be issjjed under this credit, but the total value must not exceed \ 6.600 million (CIFl as speci- fied at (i) above.

I(v) The extension of the vaJidity of the inioon licence .may on application by DGP&T, be' granted upto 31-12-86. Request for further extension, if nnv, should be refoired (0 the Department of ru>nomic Affairs Oapar> Section).

Jfu'i Imports (o be financed under tin CVdit .11L I L-

1 lifted lo Hit list ,,f goods- arid seiviee, attached to lln import licence dulv attested w 'fa lieemsiiii; authoiities.

Kvii) No remittance of foreign exchange will be per- mitted against the impoit licence. Any favment towards Indian Agents commission khould be mgde in Jndun rupees to the agents in India. Such puvmenls, however, will torm pait of the licence value ami will, thcieloie, be chaiged to ihe licence.

l(vni) Finn oidci must be placed on FOB basis on the Overseas supplier located in the countries mentioned in Aiinexuie-I'aiid sent to the Department of Economic \lfairs (Japan Section) within 4 months fiom the date of issue of the import licence. Height and insurance charges will be payable in India in Indian rupee's. '•Firm orders" means pin chase ordcis placed by the Indian lieencec on the overseas supplier dulj signed by the latter or.purchase con- tract duly signed by both tho Indian impoitei and the over- seas supplier. Ordeis on Indian Agents ot overseas suppliers and or ordci confirmation of such Indian Agents aic not 1 1 I acceptable.

J(ix) This condition of the placement ot contracts within 4 months pciiod vvill be treated (is not having been com- plied with unless complete contract documents reach the Ministry oi Hnanee Department of Economic Affairs I Japan Section) within four months f 10111 the date of issue of the import licence. If Jirm ordeis us explained in pa)a J(viii) above ennnot be placed within four months for \alid leasons, the licensee should submit the import licence to the concerned licensing authorities giving reasons ' why oidering could not be completed within foui months. Such lequests foi extension in the ordering period vvill be con- sidered on mem by the licensing authorities who may grant extension upto n further maximum period of 4 months. If, however, extension is sought beyond 8 months from the date of-issue, of the import licence s'ueh proposals will in- vaiiably be lefened by the licensing authorities to the Department of Economic Mfairs (Japan Section), Ministry of Finance, North Hlock, New Delhi uho vvill consider such .extension on the meiits of each case :ind communicate their decision to the licensing authorities for communication to the licensee. Only on pioduction r" the 'licensee of a lettc: from the licensing aiilhoiities sanctioning such exten- sion v\ill be .urthoiised dealiiis and departmental authorities permit the facility ol lettei of authority for the establish- ment of lelter of ciedit. acceptance of deposits of the rupee equivalent, etc. in lespeet of supply contracts entered into under the import licence.

1U) All payments must be completed within 4 months liom the expiry ot the import licence. Individual payments must be tmanged upon shipment ol soodv The contract should provide toi payment on cash basis i.e. on presen- tation of shipping documents. Nvj Credit facility of any kind will be permitted to be availed of by the Indian importer from the oveiscus supplier. The contract- should piovide for the peiiod of delivery of gooda us follow?:

" months aftei the icceipt of l.eiler of credit but to be completed latest by the end of ".

In fixing the terminal date tov shipment it should be noted

that this date should not be beyond 31-12-86.

Section II—^Special points to lit kep' in view while negotiat-

ing a supply contract.

ll(i) The FOB value of the contract should be expressed in Yen (Fraction of Yen should be omitted) and ihould exclude Indian Agent's commission, If nny, which should be paid in Indian uipees.

In no ciicumstances ihe contract value should be expressed in Indian rupees- or in any other currency. The purchase order uncl the supplier's oi-Jer confirmation should be in English only.

Ilfiil The broad guideline") for procurement of. goods and services unde- tbe OECF Yen Ciedit (Project Aid) aj-e, given in Annexflre-IT. However prior approval of " the Fond shall be obtained if it ii proposed f0 adopt procure- ment proceduies other ;h,in Formal Open International Ten- dering for goods' and services to be financed out of the pro- ceeds of the loan, submitting to the Fund an application for

approval of pifuurenicm nicllinOKj signed bv ilnh anllioii nl person together with its reasoning.

Immediately allei conclusion "of loan Agreement the copies of ull notices and iinrmctrjin to biddeis. the bid toim, ifae proposed contiact, speculations _;.nd. drawings iind all other documents relevant to itic biddir.fi shall be submitted 10 Ihe Fund lor its icview. The above documents/application may bp forwarded, in duplicate, to the DEA (Jap:in Section:

" for transmission lo/ohlainin-j approval of 0 K . 1.

ll(iii) The payment lo lilt overseas suppliei siiouUl be arranged ihiough an lrievoaible letter of credit to be opened by the Bunk ot India, Toiyo ' 1 (her favoui under Ihe OECI- Yen.Credit (Project Aid) N J. HJ-P. l<> for 197l).flo the details of which are given in Section VI below.

H(iv) Only one conliacl should be enicieJ into against the import licence. In exceptional cases, more lhan one" eon- Uact muy be permitted to be entaied into, for which piler approvnl of the Department of Lconomic Ail.'liis (lapan Section). Ministry of Finance, shoulo be obtained soon aflcr Ihe dale of issue of the import licence.

Illv) Eljgibility 01 Suppliei.—Supplier slmll te nationals of Ihe eligible source countries or juridical persons incor- porated and .registered in the eligible source countries and controlled by nationals of the eligible souice countries

ll(vi) Declaration in Contract.—The following statements of eligibility by the supplier shall be lulded to each contract

''I, the undersigned, hereby certify I ha' the goods to be supplied are produced in _.i-~i—* (clipihli; source country).

I, the undersigned, funhei cfitify ijia: to the best- of m\ information tind belief, the poi tion imported from the non- eligible source countries is less than thirty rer cent (30'r I in accordance with the following formula : lU/jorted C[F pri.-c i-f,nporl Duty

Supplier's FOB Price

and

"I, the undersigned, hereby ceitify that-*— ..___—,i (name Of company) has heen incorporated and -legbtered In —— —(name of eligible touice country), and is controlled by nationals of the eligible source countries"'.

JKvii} Permissible iinrioits front non-clieiblc souree count- lies.—Financing of goods which contain materials oiiginatin;/ from a non-eligible source country or countries may be made, provided-thai the imported portion is less than thirty per i*"" (30%) on an item-by-item h>si<; in accordance with Ihe following formula :

Imported CIF Price Llnipor,t Duty

Supplier's FOB Price

Section HI'—Condition-, \6 be'incorporated in the siippjv con-

tracts :

lll(i) The following'provision should ho specifically em-

bodied in Iht supply contract :

(a) The contract is .mangrd in accordance with the loan Agreement between the Government of India Snd Oveneas Economic Cooperation Fund of l.ipan lOECP) dated the 14lh Mry. 82 concerning Ihe Yen, Credit No. TD-P. N (Project Aid) for Tele- cumunications Project (V) and will be subject to the approval of Cicnernmcnt of India and the Ovei- seas Economic Cooperation Fund.

(b) Payments to Ihe sjpplici shall be made ihroueh .n irrevocable Letter of Credit to be issued bv the Bank of India. Tokyo under the Loan Acieemen' No. 1D-P. 19 c'at^.I 14th May. 82 between the Government of India nnd, the Overseas Fcewmic Cooperation Fund of lapan (OFCF).

(c) The Overseas .suppliers agree to furnish such in- formation and documents ns may be requ'"4 under Yen Credit arrangements bv (he Government of Indi.i on the one hand .md the Ul C I on llic ollici (d) Certificates tuiplicalc) in the loims ii.Uic.ilcd in

ll(\i).

IlldU 111 case the Mippli'T is loc itcd in kipan, the supply

conn act should contain a clause Him the Upanesc suppliei ajjiees to make shipping an augments in ciuisullnlion with Ihe hmhassj ol India, K>k\u and dial for ihis purposr he would keep the I-mbass\ i>f India, loKju inloimed of the de- livery schedule ol the goods iiuohci! and notify the hmbassy of India at least six; wc.lij in adyance of the shipping ic- " quired so that suitable ananHenuuis could- be nwdc. In cv ccptional cases, wheie the Indian impolicy requne u, this ' period of notice may be icducsd. Ihe Japanese supplier should also agree n send a cable advice to ihe importer after each shipment giying the nec-ssuy details und.n copy iheie

• of should be sent to the 1-mbassy of Indin, Tokyo.

Section IV--C ontract ,\ppio\,d by OFC lJ :

IV(h) Within the stipuhiL.I pciiod lor placement of firm orders Ihe licensee *>hould forwaid 4 copies of the contract duly signed by both DdPifcT and ovciseiii suppliers supported by order contiimation m '.viiiing by the overseas supplier or their photo copies complete in all iespccis, together with two photo copies of the relevant valid import licence, to Japan Section, Department of Economic Affairs, Ministry

' of Finance, North Block, New Delhi.

-1 VCJIJ The ubovc piocedui'e will also alpply to all contlact-

arncndmenls causing-essenlLd modifications to the contsnts of

. contracts.oi in its price,

• IVtfii) The Mimstiy of Finance (DEA) Japan Section will arrange to send one copy ol ihe contract documents to the OECF for their approval loi finahcing under Yen Credit Noi 1D-P 19. (Pioject Aid) for Telecomrrjiinicalion Piojccl (V).

Section V—Payment io Ihe oveLseas supplieis—-Letter of

Credit Pmcet[uic : ,

V(i) On'receipt of the intiinjrion of the contract approval lioni the OECK, by the JMinistiy of Finance, Depuitnfm of Lconojuics Affairs, Japan Section, DGP&T end the CAAA will be informed of the same. Whertnfter Ihe DOP&T should approach the Controller of Aid Accounts "fc Audit, (hercin- aftei leferrcd to as' CAA&A) Deportment of hconomic Affairs, Ministry of finance, UCQ Bank Building, Parliament Street, New Delhi with a ieqiie-,1 in Ihe ioim.attached as .Annc\-urc-MI for issue" of a letter of authotisatjon.

The CAA&A will is-aie i leitei of luthoris.ition as in the form attached as Annexure-IV a'ddrcssad. to the Tokyo Bianch of the Bank of India for opening an iircvocuble J^etter of Credit as in the form attached as AnpexnreTV (for physi- cal imports) or Anncxurc-Y I (for services) in favour of Ihe overseas supplier concerned. Copies of the Letter of Autho- risation will be endorsed to the OFCF, the Embassy of India, Tokyo, the importer's Bank in India, and Japan Sec- tion, Department of Fcomimc Affaiis, Ministry of Finance.

Vlii) On* icccipt of tho letter of authority ihe Bank of India. Tokyo, w.ill establish an inevocublc letter of credit .as per Anne\ure-V (applicable to physical imports) or VI (ap- plicable to services) in favour of the overseas suppliers con- cerned and will also foiward a copy of the same to the OFCF, Embassy of India Tokyo, ihe impoiter's Bank in Indi'a nnd the C\A&A.

The above procedure of opening of letters of credit on the basis of the letters of authoiity from CA \&A would ipso facto apply to nil such amendments to letter of authorisation/ letter of credit as may become necessarv due t.i contract amendment or other-wise.

V(iii) The overseas sunplh, shall, -ifter. effecting shipment of the poods, present Ihrouuh his banker, the documents specified m tjie letter of credit- to the Bank of India Tokyo If the documents aie found to be in oid:i, the Bunt of India' Tokyo will release the amount specified in the documents to -(he overseas supplier throuch his bankers and will thereaftei

obtain rtimblirscmcnl of the .Aia amount fiom Ihe OFCF.

• Vih) All charges on account of opening,' maintenance snd on iht operatinh of the letter r-f c?dit Mill he either fn ir,e

account of overseas suppliers or the importer. Bank, of India. Tokjo will therefore recover oil these charges from the sup- pliers Bank or the imporler, charges for handling and ne- gotiating the document!. Drat othrr incidentals will also be borne by the supplieis/impoite¹".

For the time lag between the dates of payment of the F.O.B. cost of the material by the Bunk of Jndia, Tokyo to ihe suppliers and the date of leimbuisement by ihe OECF the Bank of India will charfie interest ns per the terms and conditions of the Agreement entered into by them with the Government of India (M/o Finance) on 25-3-1980 and gel the same- reimbursed by ihc Embassy of India, ToVjo, The expcnJiiure on account of this interest-payment by the Em- bassy of Jndia in Japan will be recoveied from the P& f Departmtnt (vide Section Vl(h') infra.

Section VI—Responsibility for rupee deposit ;

Noie : Importer"* Banks in Irdia should ensure that the rupee deposits are invariably mad; within 10 days of the receipt of the advice of pyaments and negotiable shipping documents from the Bank of Jndia, Tokyo and that the CAA&A. Ministry of Finance IDEA), New Delhi is kept informed of the fact Immediately thereaftei.

Vftivj The concerned bank in India should also endorse the amount of rupee deposits on the exchange contiol copy of the licence and send the r;quisitc, "S" Form to the Re- serve Bank of India, Bombay.

The rupee equivalents of Yen paymenls on account of interest charges-etc made by Embassy of India, Tokyo, to Bank of India, Tokyo will also be calculated in the manner laid down in para Vl(i) of Section VI ubov^ and deposited in favour of the Principal Accounts. Officer Ministry of Ex- ternal Affairs, New Delhi, for which purpose, CAA&A will be tailing suitable advices.

Section VII—Miscellancr us provision? :

VU(i) Reports on the utilisation of Ihe import licence.-- • The importer should send a monthly report, after the letter of credit has been opened risarding shipment! and payments made thereagainst and about the balance left, to the Con- tioller of Aid Account* & Audit, Department of Economic Affairs, Ministry of Finance, UCO Bank Building. Parlia- ment Street, New Delhi.

VU(ii) Notifying Supplier of Special Conditions,—The licensee should apprise the supplisr of any special proviiions in the import licence which may affect Ihe tuppHenj in carry- ing out the transaction.

Vll(iii) Disputes.—It should be understood thai the Govern- ment of India will not undertake any responsibility for dw- putes; if any, that may arise between the licensee and the suppliers. The conditions to be fulfilled by the supplier before payment by the Bank of India, Tokyo must be clearly "pelt out by the importer in Annexure-III under 'Terms of Pay- ment". Provisions dealing with settlement of disputes thni.fcT be included in the conditions of contract.

V. ASfA, Middle Fast

Bniundi Cnmereon Cape Verde Islands Central African Rep. Chad Conioio Islands Congo, People's Republic ot

Dahomuy

Bahrain Israel Jordan Lebanon Oman •SyriHn Aiab Republic United Arab 1-mnates (,f>) Yemen Aiab Republic Yemen, People'i U.K. (7)

VI. ASIA, South

Afghanistan flancladesh Bhutan Hurma India Maldivm Nepal Pakistan Sri 1 ant"

Vlf. ASIA, V*r Iiait

Brunei Hong Kong Khmer Republic Korea, Republic of Laos Macao Malaysia Philippines "vingapor* I aiwan Thailand Timor Vi">Num, Rep. or V'it-Num Dem. Rep.

VIII. OCEANIA

Equatonal Guinea U) Ethiopia Gambia Ghana Guinea Ivory Coast Kenya Lesotho Liberia Malagasy Republic Malawi Mali Mauritania, Mauritius Moozambique Niger Portuguese Guinea Retinion Rhodesid Rwanda St. Helena and dep (_2j Siio Tomo and Principe Senegal Seychelles Sierra Leone Somalia Sudan Swaziland Terro. Afais and Issas Togo Uganda Un. Rep. of Tanzania Upper Volta Zaire Republic Zambia

IT. AMERICA, North ami Central.

C oeL Islnndi Fiji Gilbert &. Ellice Ii. French Polynesia (8) Nauru New Calendonla New Hebricei (Bi. rind Fi > Nine Pacific Islanjs (US) (9) Papua New Guinea Solomon Islands (Br.) Tonga Wallis and Putunn Western Samoa

IX. EUROPE

Cyptu" Oibraller Greece Malta Spain Turkey Yucosk\ is

d) Formerly 1he territory of Spanish Guinea, including

the island of Fernando Po.

(2) Including the foliow-iny islunds*- Ascension. Tnstnn Hahamas Barbados Belize Bermuda Costa Rica Cuba Dominican Republit El Salvador Guadeloupe Guatcmal.i Haiti Honduras Jamaica Martinique Mexico Netherlands AnTilles Nicaragua Panama St. Pierre & Miquelon Trinidad and Tobago West Indies fBr.1 n.i.e.

da Inacces-iihlei. Nightmcale, Goiifh.

(a) Associated St.tfes (4)

H) Main islands, Atnbu, Bonttire, CmacMo, Siiha,

fb) Dependencies f5)

St. Eustacit SI. Nfartin CSouthern pait).

[V. AMERICA, South

(4) Main islands¹ : Anti.uu*. Dominic:), Grenada, St. Kilts (St. Caristophe), Nevin-AncniMa, St. Lucia and SfrVinient,

(5) Main islands : Montseii.it. C")>m,in. 'I'mIs and

Caicos, and Biitish Virain Islands.

ffil Ajman, Dubai, Fujairtih, Rai a: Khm'mah. Sharjah

and Umm al Ouaiw.

(7) Includinc Aden and various sultanates and emirates. f8) Comprising the Sniffy Islands Tincluding Tahiti), Tke Austral Islands, the Tuamom-Gambicr Gicurt and the Marquesas Islands.

(a) Member or Association Countries of OPEC

Algeria Bolivia Liuiyan Arab Republic GaDon Nigeria Ecuador Venezuela Iran liao Kuwait Qatar Saudi Arabia Abu Dhabi Indonesia

ANNEXURE II

MAIN GUIDELINES FOR PROCUREMENT OF GOODS AND SERVICES UNDER THE PROJECT LOAN AS FORMULATED BY OX.C.F.

I. Advertising:

For all contracts subject to Formal Open International Tendering, invitations to bid shall be advertised in at least one newspaper of genoral circulation in India.

II. Bidding Documents and Contract? :

1M. Bid Bonds or Guarantee : Bid bonds or bidding guarantees are a usual requirement but they should not be set so high as to discouiage suitable bidders. Bid bonds or guarantees should Lie released to unsuccessful bidders as soon as possible after the bids have been opened.

II-2. Condition of Contiact : The conditions of contract should clearly define the rights and obligations of the importer and the contractor or supplier, and the powers and authority of the engineer, if one is employed by the importer, m the administration of the contract and any variations there- under. In addilion to the customaiy general conditions of contract, some of which are referred to in these Guidelines, special conditions appropriate to the nature and location of the project should bo included.

11-3. Type and Size of Contract: Contracts can be let on the basis of unit prices for work performed or ittms supplied or of a lump sum price, or a combination of both for differ- ent portion-* of the contract, according to the nature of the goods or services to be provided and tbe bidding documents should clearly state the type of contract selected.

Contracts based principally on the reimbursement of actual costs aro not acceptable by the Fund except in exceptional circumstances.

Single contracts for engineering, equipment and construc- tion to be provided by tbe same party ("Turnkey Contracts"). are acceptable if they offer technical and economic advant- ages for the borrower country.

IT-4. Fligible suppliers : Exporters or suppliers whose aoods and services are to be financed out of the proceeds of the Loan (h-re'naf'cr referred to n3 "the eligible supplier") shall be nationals of the eligible source countries satisfying the following conditions.

(1) a majority of subscribed share? shall be held by

nationals of the eligible source countries,

(2) a mnioritv nf fulMime din.-eroi\ shall ht nafbnnls

of the eligible source countries, and

(31 s'l^h furidJcnl 'perioni' shall be roistered In the

eligible source countries.

ITT-1. Contract Price :

(a) Thn contrary price should be stated in .fananew Yen provided, however, that the portion of the contract price which the contractor wi'l snend in the borrow- cr\ country should bt: stated in the bnrrowe V currency.

(b) Price Adjustment Clause* :

Bidding documents should contain a clear statement wnether firm prices lire required or escalation of the bid prices is acceptable.

A provision should be made for adjustment in the contract prices in the event channcs occur in toe prices of the major cost constituents of the contract, such as labour and important materials.

The specific formula for price adjustments should bo

clearly defined in the bidding documents.

A ceiling on price adjustment should be included in contracts for the supply of goods, but it is not usual to include such a ceilinji in contracts for civil works.

No price adjustments should normally be provided for

goods to be delivered within one year.

The Guidelines do not attempt to identify the- various methods by which contract prices may be adjusted

(c) Insurance:

The bidding documents should state precisely the typea of insurance to be provided by the scccessful bidder.

IH-2. The contract duly signed by both parties or purchase order by the Indian importer placed on the overseas supplier supported by order confirmation in writing by the overseas supplier, or their pholo copies are also acceptable to the Fund,

III-3. The following statement of eligibility by the supplier

shall be added to each contract:

"I (We) hereby state that my (.our) company is an eli- gible supplier, as per cent ( per centj of the shares are held by nationals of (eligible source country), and per cent ( ) of tho directors are nationals — (eligible source country) and mv (our) company has been refiistered in—— —• •- (eligible source country)".

IV-1. Standards: If national standard to which equipment or materials must comply are cited, the specifications ihould state that commodities meeting Japan Industrial Standard or other internationally accepted standards, which ensure an equal or hifiher quality than the standards mentioned, will also be accepted.

IV-2. Use of Brand Names: Specifications ehoukl be based on performance capability and should only prescribe brand names, catalogue numbers, or products of specific manufac- turer if specific spare parts a re required or it has been deter- mined that a degree of standardization is necessary to main- tain ertain essential fentures. In the latter ens© the speci- fications should permit offers of alternative commodities which have similar characteristics and provide performance and quality at least equal to those specified.

IV-3. Guarantees, Performance Bonds and Retention Money: Bidding documents for civil works should require some fcrm of surety to guarantee that the work will be continued until It Is completed. This surety can be provided either by a bank guarantee or by a performance bond, the amount of which will vary with the type and magnitude of tho viork, hut should bo sufficient to protect the borrower in case of default by tho contractor. Its life should extend sufficiency beyond completion of the contract to cover a reasonable warranty period. The amount of the guarantee or bond required should be defined in the bidding documents.

In contracts for the supply of poods it is usually preferable to have a percentage of the total payment held ns retention money 11 guarantee performance than to have a bank guaran- tee or bond. The percentage of the total payment to be hd'1 as retention money and the renditions for its uHmatr npyment should be stipulated in the bidding documents. If howrvfr, a bank jruarantee or bond b preferred It should be for a nominal amount,

V Liouirlaied Dnroaffe : Liquidated damage clause, should be fur-Turfed In bidding documents -when delays In completion or drlfverv will result In extrn co<<*, lo-;s of revenues or lesi of other benefits to the borrower. Provision may also be

' made for a bonus to be paid to contractors for crnpletion of civil works contracts at or ahead of limes spetified in the contract when such, earlier completion would bo of benefit to the borrower.

VI. Fore© Majeurc: The condition? of the Contract in- cluding in the bidding documents should contain clauses, when appropriate, stipulating that a failuie on the part of the parties to perform their obligations under the Con- tract shall not be considered a default under the Contract if such failure in the result of an event of force majeure (to be defined in the conditions of the Contract).

VII. Settlement of Disputes: Provision dealing with the settlement of disputes should be included in the conditions of the Contract. It is desirable that the provisions should be based on "Rules of Conciliation and Aibitiation" whkh have been prepared bv the International Chamber of Com- merce or on such other arrangements as nitty be mutually acceptable to the Indian Importer and the overseas supplier.

VIII. Language Interpretation • Bidding documents should be prepared in English. If other language should be used in the bidding documents, English should be added to such documents and it is required to specify which is governing,

'* IX. Bid Opening, Evaluation and Award of Contract:

IX-1. Time Interval between Invitation and Submission of Bids : The time allowed for preparation of bids will depend to a. large extent upon the magnitude and complexity of the contiact. Geneially not less than 30 days should be allowed for international bidding. The time allowed, however, should be governed by the circumstances relating to each contract.

IX-2. Bid Opening Procedures : The date, hour and place for the latest receipt of bids and for the bid opening should be announced in the invitations to bid and all bids should be opened publicly at the stipulated time. Bids received after this time should be returned unopened. The name of the bidder arid the total amount of each bid and of any alter- native bids, if they have been requested or permitted, should bo read aloud and recorded.

Dt-3. Clarifications or Alternation of Bids: No bidder should be permitted to alter his bid after the bids hive been opened. Only clarifications not changing the "ubf>lancc of the bid may be accepted. The importer may ask any bidder for a clarification of his bid but should not ask any bidder to change the substance or the price of his bid,

IX-4. Procedures to be confidential: Except as may te required by law, no information relating to the examinaticn, clarification and evaluation of bids and recommendations concerning award should be communicated after the public opening of bids to any persons not officially concerned with these procedures until the award of a contract to the success- ful bidder is announced.

IX-5. Examination of Bids : Follwing the opening, it should be ascertained whether material errors In computation have been made in the bids, whether the bids are fully responsive to the bidding documents, whither the required sureties have been provided, whether documents have been properly signed and whether the bids are otherwise generally in order. If a bid does not substantially conform to the specifications, or contains inadmissible reservations, or is not otherwise subs- tantially responsive to the bidding documents, it hould he rejected. A technical analysis should then be made to eva- luate each responsive bid and to enable bids to be compared.

IX-6. Post-qualification of bidders: In the absence of pre- qualiflcatjons, the borrower should determine whether the bidder whose bid has been evaluated the lowest has the capability • and financial resources' effectively to carry out the contract concerned. If the bidder does not meet that test, his bid should be rejected.

IX-7. Evaluation and Comparison of Bids : Bid evaluation must be consistent with the terms and conditions set foith in the bidding documents. In addition to the bid price, adjusted to correct arithmetical errors, other far"nr"t such ti the time of completion of construction or the efficiency and compatibility of the equipment, the availability of service and spare parts, and the reliability of construction methods proposed should be taken into consideration. To the extent piacticable these factors should be expressed in monetary terms according to criteria specirkd in the biadinn documtn.s. The amount oi escalation f^r pike adjusimtnis, if any, inclLd- ed in the bids should not be taken into consideration.

The currency or currencies in which the price oileied in each bid would be paid by the bonower il that bid were accepted should be valued in terms of a single currency selected Ly the borrower for comparison of till bids and staled in the bidding documents. The rates of cxi-hanae to be used in such valuation should be thi selling latcs published by an official souice, and applicable to similar transactions on the day bids are opened unless there should be a change In the value of currencies btfoic the award is made. In such cases the exchange rates at the time of the decision to notify the award to the successful bidder should be used,

1X-8. Rejection of Bids : Bidding documents usually pro- vide that borrowers may reject all bids. However, nil bids should not be rejected and new bid¹) invited on the same specifications solely for the purpose of obtaining lower piices in the new bids, except in cases where ths lowest e\ulubi.i.d bid exceeJ;, ' c *s estimates by a substantial amount. Rejection of all bids may also be justified when (a) bids tire not responsive to the intent of tha bidding documents, or (b), there is a lack of compcti'.on. If all bids are rejected, the borrower should ievicw the cause or causes justifying the rejection and either consider levision of the specifications or modification in the project (or amounts of work on items called for in the original invitation to bids), or bifh. In special circumstances, after consultation with the Fund, the borrower may negotiate with one or two of the lowest bid- ders to try to obtain a satisfactory contract.

IX-9. Award of Conract:- The Aw~rd of a contract should be made to the bidder whose bid has been determined to be fho lowest evaluated bid and who meets the apiromiata standards of capability and financial icsources. Such bidder should not be required, as a condition of award, to under- take responsibilities on commodities not stipulated in the specifications or to modify his bid.

ANNEXURE III

Request lor .usiiw ^f tho Letter of Aulhoiity

No, Date :

To

The Controller of Aid Accounts & Audit. Ministiy of Finance, Department of Economic Affairs, U.C.O. Bank Building, l3t Floor. Parliament Street, New Delhi-110001.

Sub: Import of

from lapan under the Yen Credit N o . — — ~ — —- (Project Aid)

Sir,

In connection with the import of fiom under the above mentioned Yen Credit No. ' (Project Aid) we furnish Ihe follow- ing particulars to enable you to iwue the Letter of Au'hority to the {nanw of the Bank) which should be the same as given in (n) below for opening a letter of credit in favour of the overseas supplier concerned).

(a) Name and Address of the Indian importer.

(b) Number, date and value cf the impoit licence end

date upto which it is valid.

(c) Method of procurement—whether it h based on d;iect purchase or Formal Open International Tendering In which cftse it should be indicated whether th? contract has been awarded on the bnsis of te hrii- cally suitable offer with reasons, if any.

(d) Brief description of the goods.

(e) Origin of the goods.

(f) Percentage of the import components from non-eligible

lonrce countries, if any.

(g) Oioss K )" value of comiuct (m "Y*n) in) Mnoiint or Indian "gents commission (in > enj, it

any

(it Net F-OB value (m \en) loi which the Lctlei ol

Withoiliy i* requued.

U) Nuuibei and dale <•" it'e conU.i-t v.ith oveiseu* "up-

pliers

Hi Nume and Addict ot thj oveiseis supplier:

(i) Nationality. tn) PerceDtujie of the bhuies held b> nationals ot

the eligible kOiircc countries.

(in) Nationality ot the ieptev:nUti\e and/oi Piesidenl

of the supplier.

dv) Percentage ol Diiectors who .11 e nationuls ot eligi-

ble source countries.

(I) Payment terms and probable dale? on which pay-

ments under the contract will fall due.

(m) I \pecled dale o1 completion of deliveries.

(n) Documents to be pi evented at the time of payment to Bank of India, Tokyo (indicating No. of sets ol each and their disnoial).

(o) Shipment instructions (indicate it trans-shipment/

part-shipment pennitied or not peimittcd)

(p) Name and addieM of the impoitei's bant in India.

(qj Whethei .1 eontr.Rtls) under the same licence has been placed and noulied to the Japanese auihoriiiet, anil if so, the No,, date and value of each sm.h i ontract and the reference of the Ministiy ol Hntmce undei whii-h it has been notified to the O F . Ch

ANNhXURh IV

(Lc^lci of Autlmiiy jonn)

No. r.

Government ol India Minisliy of l-mance (Department of hconomic AlTamJ New Delhi. Ihe

l<>

1 he Hank of Lndiu, Tokyo Brunch, rok}o (Japan)

Sublet:—Impott undei Yen Credit I Pi eject Aid)-Loan

Agreement No. — h " uc of Letter of

Anthontv 101 openinji Letter of Credit

Dem Sirs.

charge; of oversea* supplies banUis if any, aic to be borne by the overseas "ur"ph

\% and when an> payment )* made by you wnd rcimbume-

ment is. made to lou. un advice in Ihe piescribed form -should be sent to this Ministry.

This Letter of Authority i> inxnded to. opcnmi 01 L /C lavounng the oveiseaa supplier. Subsequert amendment! to L/C or furthci fresh L/Cs agHinst this authorisation may uot be acted upon in the absence 01 u upecific authority from this Ministry

Ihi*. letter of Authority will remain valid upto —' —.

Yours faithfully, Accounts Officer.

Copy forwaided to •—-

I. Importer —-- ——with leletence to iheir

2 Impoiters' Banket — —— —. I hey are requested to arrange to deposit the rupee equivalent of the Ven payment to the overseas suppliers on receipt ot dotu- ments trom the Bunk of India, Tokyo Branch. The tupec equivalent of amounts Jisburfecl to the suppliers will have to bo calculated by applying the composite iate oi conversion us prevailing on the dato ot payment to overseas suppliers in accordance wilh the Public Notice No. 8-irC(PN)/76 dated 17-1-1976 or such other l'ublic NJUCCS as may be issued fiom time to time. It should be ensured thai, these deposits ate made befote the original set cf import documents are handed over ro the importer for Custom? cleaiancc

These amounts should be deposited cuhei v.ith. the RBJ, Nev> Delhi or the S.B.I., T13 Hazari, Delhi, fn this toi.nec- tion their attention is also invited to the provijions of the Public Notices No. 181-FTC(PN)/68 dated 30-8-68, 233- HC(PN)/68 dated 24 IO-1%S, 132-ITC(PN)/71 dtited s-10-1371, No. 74JrC(I"Vj/74 dtited 31-5-1974 aud No. ]".3-irC(PNO/76 dated 12-10-1976. The head ot Accounts tx> be ci edited 11 'K-LXpQMtj A Advances—843—Civil De- posits—Deposits for purchases etc., abroad under Purchase under Ciedit/Loan Agreements— Loans from the Government ot Japan^6.0 billion Yen Credit (1'ioiect Aid) No IDP-P. 19 for 1979-80,

One copy of ;he chalhn in oiiguwl, in cases vvherc th" rupee equivalents are credited in cash at the RBI, New Delhi, or the SBl, Tis Hazaji, DeJhf "s presciibed in Public Notice No l32-rrca>N)/71 dated 5-10-1971, should be sent by them lo the address jiven below alonewith a forwarding lettet jivinj full details ol the advice notes leccived froni the Bank of India, Tokyo Bianch

The Controller ot Aid Accounts &, Audit, Ministry of I inancc (Depaitment of Economo Affairs), 1st Moor, UCu Uank. Buildinjf, l'ailiament btreei New Delhi-1.

In cases wheie the rupee equivalents aic remitted by menns

TA^'&a,t. Kf • * • ' •o h i⁵

\ 21

ANNEXURE V

Form OECF-LC I

Irrevocable Letter of Credit

(Applicable for goods)

Date

To

This, Letter of Credit has been iisuetl

pursuant to Loan Agreement No.

dated

(Name "md addrc-s of the Supplier)

between (Borrower) and THE OVERSEAS ECONOMIC COOPE.

D or Sir-.,

RATION FUND

We advise you that we have opened our irrevocable credit No, — — —— in your favour for account of

) available by your drafts at sight for full invoice value drawn on us, to be accompanied by the following —„ —for a sum or sums not e\ce*llng an aggregate amount of — — ~— (Sty yen documents :

Signed commercial invoice in Hill s"t of clear o 1 board ocean bills of lading made out to order and blank endorsed and marked ''Freight" and "Notify"

Other documents

evidencing shipment of fbrief description of goods to be shipped referring to Contract No. (if any)] from

to

Partial shipnieils are

permitted Transhipment

i<;

permitted.

Bills of lading must be dated not later than Drafts must be presented for negotiation not later than

All drufis and documents under this credit must be market "Drawn under

irrevocable crddit No.

, dated

and Import Reference No (s).

(if any)",

this credit is not transferable.

We hereby undertake that all drafts drawn under and in compliance with the terms of the credit shall be duly honoured on due pre- sentation and delivery of documents to the drawee.

Unless otherwise expressly stated, th's credit is subject to "Unifoim Customs and Practice for Documentary Credits (1974 Revision), International Chamber of Commerce Brochure No. 290".

Special Inductions to the negotiating bank i

1, After obtaining the reimbursement for our payments from THE OVERSEAS ECONOMIC COOPERATION FUND in accordance with the provision* of the Letter of Commitment issued thereby under the above-mentioned Loan Agreement, we undertake to remit the amount of the drafts in accordance with instructions issued by the negotiating bank.

J. The negotiating bank must forward the drafts and on complete set of documents to us together with the certificate stating that th" remaining documents have been airmailed direct to • _ _ — ._ — • . ~-

3. All banking charges under this credit arc for the account of the Importer/Supplier.

Youras faithfully,

(commercial bank)

By : „

(Authorised Signature)

PAYMENT TERMS

This payment lerms constitutes an integral part or 6ur Letter of Credit No.

r—~——_—„,—

I, Jntitial Payment

Amount ; j¹— — —^ „„__

,—_—„_ „_____ , ___ being- • —— — -— — —— — • —% of the total contract pFice.

Required documents : Latest presentation date :

II, Intermediate Payment (it any)

Amount : y — ——

•

• _, being——-— ——•— „___—ya of the total contract price.

Required documents : Latest presentation date :

III, Payment against Shipping Documents

Amount : y •

.—, _ _^ beiue- —— •• _ _ — _ _ •£ of the tola] contract price.

Note : I'hi-% attached sheet is not required in case of full payment against shipping documents,

22 THE GAZETTE OFINDIA : EXTRAORDINARY [PART I-^SBC. I]

ANNEXURE VI Form OECF-LC II

Irrevocable Letter of Credit

(Applicable for Services)

Date :

To

— '- • This Letter of Credit has been issued pur"uant to Loan

Agreement No. — , „ _ __ dated

,

(Name and address of the Supplier) between (Borrower) and THE QVERSEAS ECONOMIC

COOPERATION FUND.

Dear Siri,

We advise you that we have opened our irrevocable crodit No.

in your favour for account of for ft sum ) available by or sums not exceeding an aggregate amount of y — —(Smy Yen beneficiary's drafts at sight for full Statement value drawn on us.

To be accompanied by the required documents, in accordance with the Payment Schedule attached hereto,

concerning (Contract No: with regard to — —'Project). Drafts must be presented for negotiation not later than.

All drafts and documents must be marked "Drawn under irrevocable credit No. • dated ". This credit is not transferable.

We hereby undertake that all drafts drawn under and In compliance with the terms of the credit shall be duly honoured on due pre- sentation and delivery of documents to the drawee.

Unless otherwise expressly stated, this credit Is subject to "Uniform Customs and Practice for Documentary Credits (1974 Revision), International Chamber of Commerce Brochure No. 290."

Spoci.il Instructions to tho negotiating bank :

1. Atter receipt of the original Statements of Performance issued by (Borrower or its designated authority) in accordance with the form attached hereto, paymsnt (s) under this credit must be made in accordance with the Payment Schedule stipulated in the sheet attached hereto. In case of the initial payments, the beneficiary's Statement is required instead of the above-mentioned Statement of Perfor- mance.

2. After obtaining tho reimbursement for our payment from THE OVERSEAS ECONOMIC COOPERATION FUND In accordance with the provisions of the Letter of Commitment issued thereby under the abovementioned Loan Agreement, we undertake to remit the amount of tho drafts in accordance with the instructions issued by the negotiating bank.

3. A copy of the document as mentioned in item I above and tho drafts shall be sent to us immediately after the receipt thereof.

4. All banking charges under this credit are for the account of the importer/Supplier.

Yours faithfully,

(A commercial bank)

By: —

- (Authorized Signature)

PAYMENT SCHEDULE

This payment schedule constitutes an integral part of our Letter of Credit No. —.

I. Initial Payment

Amount : y~ • —

being ' % of the total contract price

Required documents : beneficiary' Statement Latest presentation date :

II. Progress payment

Aggregate amount : y

~^-r

being %of the total contract price to be paid as follows :

Amount due Latest presentation date

1st Instalment :

•

2nd Instalment :

•

Required document : a copy-"f Statement of Performance issued by (Borrower or its designated authority) a form of which is attached hereto.

Statement of Performance

Date :

Ref. No.

To

(Name and address of the Supplier)

Re : Letter of Credit No. - — , dated

issued by ••• • • • _ _ _ __ _____—

for

••— in favour of— _______—

concerning — •• •- — -—Project under Loan Agreement No. • • — — • •- •• • •—

I, ths uniirsigned, representing (Borrower), hereby issue a Statement of Performance to entitle — •—to receive the sum of —(Yen

only) from THE OVERSEAS ECONOMIC COOPERATION FUND in accordance with the Payment Terms Stipulated In the Contract No.- • ~, dated — —-——• •—. between — — —- and —

(Borrower)

By: __________

(Authorised Signature) Special Instructions :

The details of the actual performance shall be stated in the iheet attached hereto.

PWHTBD "Y THE MANAGEH, QOVT. OF INDIA PKEsa, KING MAD, NEW DELHI- I I 0 0 64

AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI-110054, 1 9 82