THE GAZETTE.OF iNDIA : EXTRAORDINARY

[PART 1-SEC 1]

MINISTRY OF COMMERCE

IMPORT TRADE CONTROL

PUBLIC NOTICE NO. 55-ITC (PN)/82

,Ncw Delhi, the 16th November, 198?

Subject .•—Licensing condiLions in respect of imports

of goods and services under the Yan Credit of

Yen 2.68 billion for the Implementation of

the

Indian Railways Development Project.

Hie No. IPC/23 (35)/82. The teims and conditions govern-

ing the issue of import licence in respect of import of goods

and services under the OEGP Loan Agreement No ID-P. 17

(the Indian Railways Development Project) of Yen 2.68 billion

as aiven^ in Appendix to this Public Nolice are notified for

information.

APPENDIX TO MINISTRY OF COMMERCE

PUBLIC NOTICE NO. 55 1TC (PN)/82 Dated the 16th

November, 1982

Licencing Conditions in Respect of imports of Goods and ser-

vices under the Yen Credit of Yen 2.68 billion for the Imple-

mentation of the Indian Railways Development Project

Section—1 : General Conditions

I (i) The Yen credit of 2.68 Billion extended by

the

Overseas Economic Coopciation Fund of J.ipin (OECF) for

fioancinn the import requirements of the Indian Railways

Development

Project is untied in

favour of developing

countries. Aacordingly the goods and services to be procuded

under thiv Credit can be imported from Japnn nncl

all

countries enumerated in the list at Aniiexure-I which will

be eligible source countries under the Credit.

I Chi Import lic«nee(s) under the Credit can

issued

only for such items and for such value as have been specifi-

cally cleared by the DGTD/CG Committee. The

value of

import licencc(s) is iucd under this Credit should not exceed

3,000 million (CLF).

The rupee value of the I/L shall be determined with ref.

to the exchange rate notified by the Department of Revenue

(Customs) and prevailing on the dt'te or iS'jiie of the I/L

and indicate in the

body of ihc

Import Licence(s) as

per para 2 of the Public Notice No. 78-ITC (PN)/74 dt.

6-6-74, issued by the CCT&E, which also enjoins thiit the

Customs Authorities and the auth.iraed dealers in

foreign

exchange will mate debits to the value of the Iicence(s)

at the exchange rate specified on the import licence (s). The

licence will bear the superscription "Japanese Yen

Credit

No, ID-P. 17". The first and 2nd suffix to (ho licence code

will be "S/JC". This, will also be repeated in the

leter

from tho CCI&E

forwarding the import licence to Indian

Ra'lwuys a copy

which should be endoised to the

Ministry of Finance, Department of Economic Affairs (Jupan

Section}

I (iii) Trnpo-t 1 icings) c".n be issued only in favour of

Indian Railways on C.I.F. basis,

1 (iv) Depending on the convenience of Indian Railways

more than one JyL rr ay be issued under this credit but

the total value

must not

exceed 3,000 million (C1P)

£is

specified at (i) above.

I (v) The extension of the validity ef. import licence, m-Ly

applicjiion

Indiau

Railways.,

oranted

up to

31-12-86. Request for further cxtenbion, if any, should be

referred to the Department

of Economic Affaiis (Japan

Section).

I (vi) Imports to be finrnjed i-nder the Cicdit are res-

tricted to tha list of goods ;>nd &er"ices attached tn

the

1/L duly uttested by the Licensing Authorities.

I (vii) No remittance of foreign exchange will be per-

muted i'cainit the 1/L. Any payment towards Indian Agents

commission should be made in Indian rupees to the agents

in India. Such payments, howeve¹', will fcrm part of

the

licence value and will, therefore be chaigcd to the Ji:eni.e.

1 (vni) Firm oidcr must be placed un FOB basis on

the

Overseas supplier located in the coualiies ihcntloiud

Anncxuie-I and sent to the Department of Fconomic Affairs

(Jap.m Section) within 4 months from the date of issue of

the I/L. 'Fieight and Insurance charges will be payable

India in Indi.m uipees. "Him

orders"

means puichr.se

orders placed by ;he Indian Liccnrce on 'ihe Ove seas supplier

duly siened bv the latter or puichas? contract duly signed

by both the Indian Inipoitei

and the Ov:ra.'s

supplier.

Orders on Indian Agents of Overseas suppliers and/or oid:r

confiimation of inch Indian Agents are not acceptable.

I ((ix) This condition of the placement of contracts with-

in 4 month? period will be treated its not having been com-

plied with unless complete contract documents reach

the

Ministiv of Finance,

Dcpiitrnent of Economic

Affairs

(Jppnn Section) within four months fiom the date of issue

of the I/I, If flim orders as explained in para I (v)ii) above

cannot be placed within four month¹: for valid reasons the

licenc:e should submit the I/L to the co.ireinel licensing

authorities Riving reasons why ordeiing could not be com-

pleted within four months. Such requests for cxten-ion

1he ordeiing p-riod

will be considered on merit bv the

licensing authorities who may ?rnnt extension uplo a further

maximum period of 4 mnnltis. If, however, extension is

sci'ght beyond S months fiirn the dnt- of issue of th* I/L

such pi open's will invariably

be referred bv th« liccnvng

authniitiVs to th? department of Economic Affniis

(Japan

Serf ion), Ministiv cf Fimnee, No-lh Elo k, Nr\v Delhi who

will consider such r\t.-ns:on on the mei its -if p " h rr<c and

communicate their der-sion to the licensing authorities for

communi ition to the licence. On'y on production by ihe

licenccc of a letter from the li'ending luihoiities sanctioning

such extension will the authorised dealers and departmental

ai"hoi-^;ti'es pernMt the fdcili¹ v of letter of Authority for the

establishment of Letter of Credit, accentanw of deposits of

the rupee

equivalent

etc. in respjet of supply

contracts

entered into under the T/L.

T (x) All payments must be comnlt-ted wifh'n 4 months

frem Ihc cxi^;ry of the I/J . Tndividiul pnymems must

?rianf*;d unon shipment of giidi. "The contract should p"O-

vii'-e for p"\yn-i«nt on crsh bisis i.c on p.e^eni'tioi of fhip-

p^;n^ doc'T.-.eiiLS. No ciffl f. c'i'ity cf anv kind will be per-

miltcd to be availed of bv the

Indian Impniter from

the

Ov r'e^s tup-Jier.

The contra"

chould

provide for the

p.nod of deliver} of goeds as follows :

months

ffer the receipt of Tetter

credit but to be completed latest by the end of.. ..".

In fixinp the t'^-mifinl di'e Joi shipment it «hovld be noted

that this date shovld net be beyond 31-12-86.

Section II . Speci.,1 p-iints to he kept in ^iew while negotiat-

in<r a swrply contrac*-

IT (i) The FOR va'.ii- if tli- cr lL'act shfnW 1« exp-essrd

In YOT (fraction of Vtr, shoti'j be omitted) and should ex-

clude Indian Agent's commission, if any, which should be

paid in Indian rupees.

In no circumstances the contract value should be expressed

in Indian lupees or in any other currency.

The purchaRe

cider and the supplier's

order confirmation shojld

be in

ijnglish only.

II (ii) The main guidelines for procurement of coeds and

services under the Ol'CF Yen Credit (Project Aid) are eiven

in Annexure-II.

However,

noimally the procurement

foods and KCIvices should

he made through Formal Open

International Tcndciing and the following points should be

borne in mind :

(a) Invitations to bid- shalt have to be advertised

at least one newspaper of general circulation

India.

(b) Bid bonds or biddiis guarantees are a usual re-

ciuirernent but they should not be set so high as

to discourage suitable bidders

suJccvsful bidders us soon as possible after the bids

have been opened.

I' (iii) Tn cases where Formal Open International Tender-

ins is not considered appropriate the Fund will accept the

following alternative procedure :

(a) Where the- importer

has convincing reason^

maintaining a reasonable

standardisation of

his

equipment.

(b) Where the number of qualified tuppliers i» limited.

so small that foreign firm<! clearly would not be

interested or that the advantages of formal open

international tendering would be outweighed by the

administrative burden involved.

(d) Where, in addition to the cases (a),

(b) & (c)

above, the Fvnd deems it inappropriate to follow

the formal open international tendering procedures

or the Fund deams

such procedure inapplicable,

e.g., in case of emergency pro urement.

In the above mcniioicd CHSCS the following procurement

procedure may be applied in such a manner as to comply

vith the formal open international tendering

procedures to

Lhe fullest possible extent as appropriate.

(i) Formal Selective International Tendering,

(ii) Informal International Competitive Procurement,

(iii) Direct purchases fiom a single supplier.

However, prior approval of the Fund rhal] be obtained

if it iv proposed to adopt procurement procedures other than

Formi.l Open Internnlionnl Tendering for goods and services

to be financed, out of thn ^ro;ceds of the Loan, submittini;

to the Fun-i

an application for approval

of procurement

method (O sijmed by a duly authorised person together with

its reasoning-

Prior to invitinc bids iYir the procurement of piiodi and

Rcvify^, ih° importer shall suhmif to the Fund for its sp-

pro 'nl copies of all notice! and instructions to bidders, the

bid fnrtn the proposed contract, srtccifieations #nd drawings

anr) all other documents relevant to the bidding.

Th? appl^:cation-'dociimen'"! should be sent

in duplicate,

tn the Department of Fcoi'irnic Affairs (Jppan Section) for

obtaining the approval of th; Fund.

TI (iv) The uavment to tfie overseis simpUes should be

nrnni;H throueb an irrevocable letter of c-fdit to be open-

ed bv &<• Tlpnk of Tndia. Tokyo in th'-ir favour under the

OTCF Yevi Crcilit fPnjert Aid) No. TD-^D.17 fhr 1979-80

ihr drt.niN n[ vvhich rre siven in Section VI below.

IT (v) Only rn" contract -;houH

b° entered into against

ttr T/L.

In rycentioti.il ai'^s. mere than orjc contract mav

b^ "crrpitVd to he entered into, for vhich prior nnnroval

of the Dnpartnu-nt

of Economic Affain

(Jnpnn Section),

r^r ji-v.-'i of *he Tmr-ort !i".ence.

Winistrv of Finance, should be obtnine.l soon after the date

THE GAZETTE OF INDJA x EXTRAORDINARY

[PART I—SEC. 1J

MINISTRY OF COMMERCE

IMPORT TR4DE CONTROi

PubJic.Notice No. 53—HUPN),82

New Delhi, the 23rd October. 1982

Subject:—Licencing conditions in respect of imports of

goods and services under the Yen Credit of y 6.0

billion foi Telecommunications Project (V) of the

DGP&T.

File No. IPCl23(34) 82.—The

terms

and

conditions

governing the issue ot import licence in respect of imports

of goods and sen ices under the Yen Credit of y 6.00

billion foi

telecommunications Project(V) of the DGP&T

extended

by the

Oveiseas

Economic Civ-opei ation Fund

(OECF) of Japan as

given

in Appendix to this Public

Notice are notified for information.

MANI NARAYANSWAMI, CWef Controller

of Imports & Exports

APPENDIX

TO MINISTRY OF COMMERCE PUBLIC

NOTICE NO 53—ITC(PN)/82

Dated the 23id October, 1982

Licensing Conditions in Respect ot Imports of Goods and

Services under the Yen Credit of

y 6.0 Billioo for Tele-

communications Project

(V)

Extended by the Overseas

Economic Co-opeiation I-und(OECF) of Japan.

Section I—-General Conditions :

](i) The Yen Credit of

v 6.0 Billion extended by the

Overseas Economic Co-opei ation

Fund of

Jap.m (OECF)

for financing the import requirements of the Telecommuni-

cations Project of the DGP&T is untied in favour of deve-

loping countries.

Accoidingly the goods and seivices to be

procured under this credit can be impoited from Japan and

all countries enumerated in the list at Annexure-I Which

will be eligible souice countiies undei the credit.

Kii) Import Licence (s) uixler the Ciedit can be issued

only for such items and foi such value a.s have been speci-

fically cleared by the DGTD/CG Committee.

The value

of import licence(s) issued under

this credit should not

exceed Yen 6,600 million CCIF).

The rupee value of the import licence shall be determined

with reference to the exchange late notified by the Depart-

ment of Revenue (Customs) and prevailing on the date of

issue of the import licence and indicated in the body of

the import licencefs) as per paut 2 of the Public Notice

No. 78-ITC(PN)/74 dated the 6th June. 1974. issued by

the CCI&E, which also enjoins that the Customs Authorities

and the authorised dealers in foreign exchange will make

debits to -the value of the licence (s) at the exchange rate,

specified on the impoit licence("s).

The licence will bear

the superscription "Japanese Yen Credit No. ID-P. 19". The

first and second suffix to the licence code will be "S/JC".

This will also be repeated in the letter fiom the CC'I&R

forwarding the import licence to DGP&T, a copy of which

should be endorsed to the Ministry of Finance, Department

of Economic Affairs (Japan Section).

I(iii) Import licencefs) can be issued only in favour of

DGP&T on CIF basis.

I(fv) Depending on the convenience of DGP&T more than

one import licence may be issued under this credit but the

total value must not exceed y fi.600 million fCIF) as speci-

fied at (i) above.

I(v) The extension of the validity of the import licence

.may on application by DGP&T, be granted upto 31-12-86

Request for further extension, if any. should be referred to

the Department of Fconomic \ffairs (7apat> Section).

1(\i) imports to be financed under die CVdi't

ir, us-

tneted to the list of goods and services attached to the

import licence duly attested a*⁴he licensing authorities

i(vii) No lemittanee of foreign exchange will be per-

mitted against the import licence.

Any payment towards

Indian Agent's commission should be made in Indian rupees

to the agents in India.

Such payments, however, will form

part of the licence value and will, theiefore, be charged to

the licence.

I(viiij Firm older must be placed on FOB basis on the

Overseas supplier located in

the countries mentioned in

Annexuie-I'and sent to

the

Department

of Economic

Affairs (Japan Section) within 4 months from the date of

issue of the import licence. Fieight and insurance charges

will be payable in India in Indian rupees. -Firm orders"

means purchase orders placed by the Indian licencee on the

overseas supplier dulj signed by the latter or.purchase con-

tract duly signed by both the Indian importer and the over-

seas supplier. Ordei.s en Indian Agents of overseas suppliers

and/or ordei confirmation of such Indian Agents are not

acceptable.

l(ix) This condition ot the placement of contracts within

4 months period will be treated as not having been com-

plied with unless complete contract documents reach the

Ministry of Finance.

Department

of Economic Affairs

(Japan Section) within tour months fiom the date of issue

of the import licence.

firm

ordeis as explained in

paia I(viii) above cannot be placed within four months for

\alid reasons, the licensee should submit the import licence

to the concerned licensing authorities giving

reasons'why

ordering could not be completed within four months. Such

requests for extension in the ordering period will be con-

sidered on merit by the licensing authorities who may grant

extension upto a further maximum period of 4 months.

If,

however, extension is sought beyond 8 months, from the

date of-issu^ of the import licence such proposals will in-

variably be referred by the

licensing

authorities to the

Department of Economic Affairs (Japan Section), Ministry

of Finance, North Block. New Delhi who will consider such

extension on the merits of each case and communicate their

decision to the licensing authorities for communication to

the licensee.

Only on production

by the licensee of a

letter from the licensing authorities sanctioning such exten-

sion will be authorised cU-aljrs and departmental authorities

permit the facility of letter¹ of authority for the establish-

ment of letter of ciedit, acceptance of deposits of the rupee

equivalent, etc. in respect of supply contracts entered into

under the import licence.

I(x) All payments must be completed within 4 months

fiom the expiry of the import licence. Individual payments

must be arranged upon .shipment of goods.

The contract

should provide for payment on cash basis i.e. on presen-

tation" of shipping documents.

No credit facility of any

kind will be permitted to be

availed

of by the Indian

importer from the oveiseas supplier.

The contract should

provide for the period of ddiveiy of goods as follows:

months after the receipt of Letter of credit but

to be completed latest by !he end of

'".

In fixing the terminal date far shipment it should be noted

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

Section II—Special points *.o b>. kep< in view while negotiat-

ing a supply contract.

>^{WO The FOB value of the contract should be expressed}

in Yen (Fraction of Yen should be omitted) and should

exclude Indian Agent's commission, if any, which should be

paid in Indian rupees.

In no circumstances the contract value should be expressed

in Indian rupees or in any other currency. The purchase

order and the supplier's order confirmation

should

be in

English only.

Il(ii) fhe broad guidelines for procurement of. goods and

services node'- the OECF Yen Credit fProject Aid)

aje,

given in Annexure-IT. However prior approval of'

the

I und shut) be obtained, if it is proposed to adopt procure-

ment procedures other than 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 pjocurement m:thod(s) signed by duly auihoiKc.l

person together with its reasoning.

Immediately alter conclusion of I oan Agreement

the

copies of all notices and instruction* to bidders, the bid torrn,

the proposed contiact, . specifications snd, drawings and all

other documents relevant to the bidding shall be submitted

to the Fund for its review. The abo\e documents /application

may be forwarded, in duplicate, to the DEA (Japan Section)

for transmission to/obtaining approval of OFCI.

li(iri) The payment* to the overseas suppliei should

arranged through an uicvocablc letter of credit to be opened

by the Bank of India, Tokyo ii their favour under the OhCl

Yen Credit (Project Aid) No. ID-P. 19 for 1979-80 the details

of which are given in Section VI below.

ll(iv) Only one contract should be enteicJ into against

the import licence. In exceptional .cases, more than-one'con-

tract may be permitted to be entered into, for which riior

approval of the Department of Economic Affairs (Japan

Section), Ministry of Finance, should be obtained soon after

the dale of issue of the import licence.

H(v) Eligibility of Supplier.—Supplieis shall be nationals

of the eligible source countries or juridical persons incor-

porated and -registered in the eligible, source countries and

controlled by nationals of the eligible souice countries.

\II(vi) Declaration in Contract.—The following statements

of eligibility by the supplier shall be added to each contract.

"I, the undersigned, hereby certify tha' the goods to be

supplied are produced in

'--

——(eligible

source country).

1, the undersigned, further certify ilia: to the best-of my

information and belief, the portion imported from the non-

eligible source countries is less than thirty per tent (30.%)

in accordance with the following formula :

In-iorted C[F Price-f Import Duty

• •

.•..:.-

_ x ioo

Supplier's FOB Price

and

"I, the undersigned, hereby certify that-¹

'> •

(name of company) has been incorporated and -registered

(name of eligible source

country), and is controlled by nationals of ihe eligible source

countries"'.

• '"

H(vii) Permissible imnoits from non-eliaible source count-

ries.—Financingof goods which contain materials originating

from a non-eligible source country or countries may be made,

provided-that the imported portion is less than thirty per ?*"'

(30%) on an item-by-item b.>sis in accordance

with

the

following formula :

Imported CIF Price+Impor,t Duty

x^IOO

Supplier's FOB Price

Section HI*—Conditions to be Incorporated in the supply con-

tracts !

- -

III(i) The following provisions should be specifically'em-

bodied in the supply contract :

(a) The contract is at ranged in accordance with the Loan

Agreement between the Government of India

Shd

Overseas Economic Cooperation Fund of

Japan

(OECF)

dated the 14th M."V, 82

concerning the

Yen. Credit No. ID-P. 19 (Project Aid) for Tele-

cumumcations Project (V) and will be subject to

the approval of Government of India and the Over-

seas Economic Cooperation Fund.

(b) Payments to the. sjpplier shall be made through an

irrevocable Letter of Credit to be issued by the

Bank of India,, Tokyo under the Loan Asreemem

No. ID-P. 19 dated 14th May. 82 between

the

Government of India and, the Overseas' Economic

Cooperation Fund of tapan (OFCF>.

such in-

formation and documents as may be requiied under

Yen Credir arrangements bv the Government of

India on the one h.md and the OtCl- on the other

(d) Certificates (triplicate) iu the iorms indicated

ll(vi).

IJI(n) Jn case the supplier is locited in.Japan, the supply

contiact should contain a clause that the Japanese supplier

agrees to make shipping anangemenfs in consultation with

the Embassy of India, lokyo and that for this putpose he

would keep the Embass) of India. Tokjo informed of the de-

livery schedule of the goods involve.! and notify the Embassy

ot India at least six vve^t, in ad\ance of the shipping re-

quired so that suitable arrangements could* be made, jn ex-

ceptional cases, where the Indian impoiters require it,

this

period of notice may be ieduced. The Japanese supplier

should also agree to send a cable advice to ihe importer after

each shipment giving the necessity details and.a cepy theie

• of should be sent to the Embassy of In^ia, Tokyo,

Section IV—Contract Approval by OECF :

IV(t) Within the stipulated pcriol for placement of firm

ordeis the licensee should forward 4 copies of the contract

duly signed by both DGP&T and overseas suppliers supported

by order confirmation in wriiing by the overseas supplier or

iheir photo copies complete in all lespects, together

with

two photo copies of -the relevant valid import licence,

Japan Section, Department of Economic Affairs. Ministry

' of Finance, North Block, New Delhi.

-IV(ii) The above procedure will also apply to all contract-

amendments causing-essential modifications to the contents of

. contracts.or in its price.

- IVtin) The Ministiy of Finance (DEA) Japan Section will

arrange to send one copy of the contract documents to. the

OECF for their approval for financing under Yen Credit

No. ID-P. 19(Pioject Aid) for Telecommunication Project

(V).

Section V—Payment to

Ihe overseas suppliers—Letter

Credit Procedure :

. .

V(i) On "receipt of the intimation of the contract approval

from the OECF, by the Ministry of Finance, DepartniJnt

of Economics Affairs, Japan Section, DGP&T and the CAAA

will be informed of the same. Whertafter the DGP&T should

approach the Controller of Aid Accounts & Audit, (herein-

after leferred to as' CAA&A)

Department of

Economic

Affairs, Ministry of Finance, UCO Bank Building, Parliament

Street, New Delhi with a ieque»t in the form, attached

.Annevure-HI for issue" of a letter of authoiisation.

The CAA&A will is-Aie a lelt^r of authorisation as in the

form attached

as Annexure-IV* addiessed to the

Tokyo

Branch of the Bank of India for opening an irrevocable Letter

of Credit as in the form attached as Annexure,V (for physi-

cal imports) or Annexure-VI (for services) in favour of the

overseas supplier concerned. Copies of the Letter of Autho-

iisation will be endorsed to the OECF, the Embassy

India, Tokyo, the importer's Bank in India, and Japan Sec-

tion, Departmem of Eeonomc Affairs. Ministry of Finance.

V(ii) On icceipt of the letter of authority, the Bank of

India, Tokyo, w.ill establish an ii revocable letter of credit as

per Annexure-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

OECF, Embassy of India, Tokyo, ihe importer's Bank in

India and the CAA&A.

The above procedure of opening of letters of credit

the basis of the letters of autho-ity from CAA&A would ipso

facto apply to all such amendments to letter of authorisation/

letter of credit as may become necessary due tn contract

amendment or other-wise.

V(iii) The overseas stinpihr shall, -fter, cfTectina shipment

of the goods, present ihroneh his bankers the 'documents

specified in tjie letter of credit- to the Bank of India. Tokyo

If the documents are found to be in order, the Bank of India'

Tokyo will release the amount specified in the documents to

-the overseas supplier through his bankers and will thereafter

obtain reimbursement of the ..aid amount from the OFCF.

• Vfiv) All charges on account of opening; maintenance and

on the operation of the letter ot credit will h* *ith*r t~ th.

THE GAZETTE OF INDIA : EXTRAORDINARY

[PART I- SEC. 1]

Equatorial Guinea (t)

Ethiopia

Gambia

Ghana

Guinea

Ivoiy Coast

Kenya

Lesotho

Liberia

Malagasy Republic

MaLiiii

Mdli

Muuritanin, Mauritiu¹?

Moozambique

Niger

•Portuguese Guiflen

Reunion

Rhodesia

Rwanda

St. Helena and dep. (2)

Sao Tnmo and Princjpe

Senegal

Seychelles

Sierra Leone

Somalia

Sudan

Swaziland

Terro. Afars and Issas

Togo

Uganda

Un. Rep. of Tanzania

Upper Volta

Zaire Republic

Zambia

III. AMERICA. North and Cont

Bahamas

Barbados

Belize

Bermuda

Costa Rica

Cuba

Dominican Republic

El Salvador

Guadeloupe

Guatemala

Haiti

Honduras

Jamaica

Martinique

Mexico

Netherlands AnTilles

Nicad"gua

Panama

St. Pierre & Miquclon

Trinidad and Tobago

West Indies (B'r.) n.i.e,

(a) Associated Stales (4)

(b) Dependencies (5)

IV. AMERICA, South

Argentina

Bolivia

Brazil

Chile

Colombia

Falkland Islands

(1) Formerly the territory of Spanish Guinea, including the

island of Fernando Po.

(2) Including the following islands; Ascension, Tristan da

Inaccessibles, Nightingale, Gough.

(3) Main islands, Aruba, Bonaire, Curacao, Saha, St. Eus'a-

ci'f St. Marl in (Southern parlt).

(4) Msin islands, Antigue, Dominica, Grenada, St. Kttte

(St. Carlstophe), Nevis-Anguilla, St. Lucia and St. Vin-

cent.

(5) Main islands : Montserrat, Cayman, lurks and Calcos,

and British Virgin Islands.

French, Guiana

Guyana

Paraguay

Pern

Suiinam

Uruguay

V. ASIA, Middle Fast

Bahrain

Israel

Jorden

Lebanon

Oman

Syrian Arab Republic

United Arab Emir tes (6)

Yemen Arab Republic

Yemen, People's DR. (7.)

VI. ASIA, South

Afghanistan

Bangladesh

Bhutan

Burma

Tndia

M'aldivis

Nepal

Pakistan

Sri Lanka

Vlr. ASIA, Far East

Brunei

Hong Kong

Khmer Republic

Korea, Republic of

Laos

Macao

Malaysia

Philippines

Singapore

Taiwan

Thailand

Tinor

Vict-Nam, PeubHc of

Viet-Nam, Democratic Republic,

. VIIT. OCEANIA

Coek Islands

Fiji

Gilbert & Ellice Is,

French Polynesia (8)

Nauru

New Calendonia

New Hebrices (Br. and Fr.)

Niue

Pacific Islands (US) (9)

Papua New Guinea

Solomon Islands (Br.)

Tonga

Walfis and Futuna

Western Samoa

IX. Europe

Cyprus

Gibraltar

Greece

Malta

Spain

Turkey

Yugoslavia

(6) Ajman, Dubai, Fujairah, Ras al Kbalmnh, Sharjflh and

Umai al Quaiwain.

(7) Including Aden and varioqs sultanates and emirates.

(8) Comprising (ho Society Islands (including Tahiti), The

Austral Islands, the Tuamotu-Gamblcr Gioup ami (he

Marquesas Islandi.

(9) Trust Territory of the Pacific Islands : Caroline Islands.

Marshal) Islands, and Marine Islands (except Guam).

fa) Mcrrber or Association Countries of OPEC

Algeria

Bolivia

Libyan Arab Republic

Gabon

Nigeria

Ecuador

Venezuela

Iran

Iraq

Kuwait

Qatar

.Saudi Arabia

Abu Dhabi

Indonesia

ANNEXURE II

MAIN GUIDELINES FOR PROCUREMENT OF GOODS

AND SERVICES UNDER THE PROJECT LOAN

FORMULATED BY Q.E.C.F.

I. Advertising

F'or all contracts subject to Forma) Open Tntei national

Tendering, invitations to bid shall be advertised in at least

one newspaper of general circulation in India.

II. Bidding Documents and Contracts

II-l Bid Bonds or Guarantees

Bid bonds or bidding guarantees arc a usual requirement

but they should not be set so high as to discourage suitable

bidders. Bid bonds or guarantees should be released to

unsuccessful bidders as soon as possible after bids- have

been opened.

II-2. Conditions of Contract

The conditions of contract should clearly define the rights

and obligations of the importer and (he contractor or supplier,

and the powers and authority of the engineer, if one is

employed by the importer, in the administration of the con-

tract and any variations thereunder.

addition to the

customary general conditions of contract, some of which are

referred to in these Guidelines, special conditions appropriate

1o the nature and location of the project should be included.

II-3. Type and Size of Contract

Contracts can be Jet on the basis of unit prices for woik

performed or items supplied or of a lump sum price, or a

combination of both for differenet portions of ihe contract,

according to the nature of the goods or services to be provided

and the bidding documents should, clearly state the type of

contract selected.

Contracts based principally on the reimbursement of actual

costs are not acceptable by the Fund except in exceptional

encumstances.

Single contracts for engineeiing, equipment and construc-

tion to be provided by the same party ("Turnkey Contracts")

are acceptable if they offer technical and economic advan-

tages for the borrower country.

TI-4. Eligible suppliers

Exporters or suppliers whose goods and services are to

be financed out of the proceeds of the Loan (hereinafter

referred to as "the eligible supplier") shall be nationals of

the eligible source countries satisfying the following condi-

tions.

(1) a majority of subscribed

shares shall be held

by nationals of the eligible source countries,

(2) a majority of full-time directors shall be nationals

of the eligible source countries, and

(3) such juridical 'persons' shall be registered in

the

eligible source countries.

TTT-1 Contract Price

(a) The contract price should b e stated in Japanese Yen

provided, however, that the portion of the contract

price which the contractor will spend in the borro-

wers country should be stated in the borrower's

currency.

(b) Price Adjustment Clauses

Bidding documents should contain a clear statement

whether firm prices are required or escalation of

the bid prices is acceptable.

A provision should be made for adjustment in the con-

tract prices in the event changes .occur in the prices

of the major cosl constituents of the contract such

as labour and important materials.

The specific formula for price adjustments should be

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 ceiling 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.

The bidding documents should state pieoisely the types

of insurance to be provided by the successful bidder.

II1-2. The contract duly signed by both parties or pur-

chase order bv the Indian importer placed on the overseas

supplier supported by order confirmation in writing by the

overseas supplier, or their photo copies are also acceptable

to the Fund.

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

shall be added to each contract.

"T (We) hereby state that my (our) company is an eligi-

ble supplier, as

percent (

%) of

the shares are held by nationals of

(eligible source country) and •

•

percent .

(

) of the directions are nationals (eligible

source countrv) and my (our) company has been

registered i n —

—— (eligible source

country)".

IV-1. Standards

If national standard to which equipment or materials must

comply are cited,' the specifications should state that commo-

dities meeting Japan Industrial Standard or other interna-

tionally accepted standards which ensure an equal or higher

quality than the standards mentioned, will also be accepted.

IV-2. Use of Biand Names

Specifications should be based on performance capability

;ind should only prescribed brand names, catalogue numbers,

or products of specific manufacturer if specific spareparts

are required or it hag been determined that a degree of

standardization is necessary to maintain

ceitain essential

features. Tn the latter case the specifications should peimit,

offers of alternative commodities which have similar charac-

teristics and provide performance and quality at least equal

to those specified.

1V-3. Guarantees,

Performance

Bonds

and

Rctantion

Money

Bidding documents for civil works should require some

foim of surety to guarantee that the work will be continued

until it is completed. Thin 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 the work,

but should be sufficient to protect the borrower in case of

default by the contractor.

Its life should extend sufficiently

beyond completion of the contract to cover a reasonable

warranty period. Th» amount of the guarantee or bond

required should be defined in the bidding documents.

In contracts for the supply of goods it is usually preferable

to have a percentage of the total payment held as retention

money to guarantee performance than to have a bank guaran-

tee or bond. The percentage ef the total payment to be

held as retention money and the conditions for its ultimate

payment should be stipulated in the bidding documents.

If,

however, a bank guarantee or bond is preferred it should be

for a nominal amount.

987 GI/82—3

THh GAZETTE OF INDIA : EXTRAORDINARY

[PART I—SLC. 1]

V. Liquidated Damage

Liquidated damage clauses should be included in bidding

documents when delays in completion or delivery will result

in extra cost, loss of revenues or loss of other benefits to

the borrower.

Provision may also be made for a bonus lo

be paid to contractors for completion of civil works contracts

'At or ahead of times specified in the contract when such

earlier completion would be of benefit to the borrower.

VI. Force Majeure

The conditions of the Contract included in the bidding

documents should contain clauses, when approormte, stipulat-

ing 'that a failure on (he part of the parties to perform their

obligations under the Contract shall not be considered a

default under the Contract if such failure m 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 Arbitration" which have been prepared by the Interna-

tional Chamber of Commerce or on such other arrangements

as may 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 he added to such documents and it is required to

specify which is governing.

IX. Bid Opening, Fvaluation 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

contract,

Generally 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.

LX-2. Bid Opening Procedures.—The date, hour and place

for the latest leceipt 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 HIds

received

after this time should be returned unopened. The name of

the bidder and the total amount of each bid and of any alter-

native bids, if they have been requested or permitted, should

be read aloud and recorded.

IX-3.

Clarifications or Alternation of Bids.—No

bidder

should be permitted to alter his bid after the bids have been

opened, only clarifications not changing the substance of the

bid may be accepted, The importer may ask any bidder for

a clarification of his bid but should not ask Hny bidder to

change the substance or the price of his bid.

IX-4.

Procedures to be confidential.—Except us may he

required by law, no information relating to (he examination

clarification and evaluation of bids und 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.

h ^D^ ^S' f c

E x a m i l!? t i- o n

o f

Bids-—Following the opening, it

should be ascertained whether material errors in computa-

tion have been made in the bids, whether the bids are fully

responsive to the bidding documents, whether tie required

sureties have been provided, whether documents hav^ been

fnTrf^Y^STf⁸?lT:?^{W h e t h e r} L^he^bi?«^{a r e} otherwise generally

ffciittaE' £ ™^b£^<to<?l « * •n&tant'ally conform to tie speci-

w ^ ™w ?-°"^tain« inadmissible reservations, or is not other-

wise substantially reaponiive to the bidding documents

should be rejected. A technical analysis should then be mad"

anSffl™?"i^V"⁰¹¹ °^f^B*^dder8—^ the absence of r>re-

fir

wfc ' v5 l°ⁿT^r

*^h°^m *twmiM

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 forth in

the bidding documents. In addition to the bid price, adjusted

to correct arithmetical errors, other factors such as the time

of completion of construction or the efficiency and compatibi-

lity of the equipment, the availability of service and spare

parts, and the reliability ot construction methods proposed

should be taken into consideration. To the extent practicable

these factors should be expressed in monetary terms according

to criteria specified in the bidding documents. The amount of

escalation for price adjustments, if any, included in the bids

should not be taken into consideration.

The currency or currencies in which the price offered In

each bid would be paid by the borrower if that bid were ac-

cepted should be valued in term* of a single currency selected

by the borrower for comparison of all bids and stated in the

bidding documents. The rates of exchange to be used in such

valuation should be the selling rates published by an offi-

cial source, and applicable lo similar transactions on the day

bids arc opened unless there ihould be a change in the value

of currencies before (he 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, all bids

should not be rejected and new bids invited on the same speci-

fications solely for the purpose of obtaining lower prices in

the new bids, except in cases where the lowest evaluated bid

exceeds the costs .estimates by a substantial amount. Rejec-

tion of all bids may also be justified when (a) bids are not

responsive to the intent of the bidding documents, or (b), there

is a lack of competition. If all bids are rejected, the borrower

should review the cause or causes justifying the rejection and

either consider revision of the specifications or modification

in the project (or amounts of work on items called for in the

original invitation to bids), or both, In special circumstances

after consultation with the Fund, the borrower may negotiate

with one or two of the lowest bidders to try to obtain

satisfactory contract.

IX-9 Award of Contract.—The Award of a contract should

he made to the bidder whose bid has been determined

be the lowest evaluated bid and who meets the appropriate

standards of capability and financial resources. Such bidder

snould not be required, as a condition of award, to undertake

responsibilities on commodities not stipulated in the specifi-

cations or to modify his bid.

ANNEXURE i n

REQUEST ^OR ISSUE OK THE LETTER OF AUTHORITY

LWTE

The Controller of Aid Accounts and Adult,

Ministry of Finance,

Department of Economic Affairs,

UCO Bank Building, 1st Floor,

Parliament Street,

New Delhi-110001.

Sub.-Import of

frOm ,

OTder

Yen Credit No.

(Project Aid)-

Sir,

In connection with the import of

from

under the above mentioned Yen Credit No.

-_ff» T O l e c t

as z ^Jis^x^I^il

Bank) which should be the »ame as given in fnfbdow for

S n e d

1 )

1 ^ °f CmUt ta faTOW ^f & - S i r ^ p S

(a) Name and Address of the Indian importer.

(b) Number, date and value of the import licence

and

date upto which it is valid.

purchase or Formal Open International tendering in

which case ii should' be indicated whether

the

contract has been awarded on the basis of techni-

cally suitable offer with reasons, if any.

(d) Brief description of the goods.

(e) Origin of the goods.

If) Percentage of the import component! from non-elifiible

source countries, it any.

(g) Ciioss FOB value of contract (in Ytu)

(h) Amount of Indian agents commission lin Yen, if

any.

(i; Net l-OB value (In Yen) for which the Letter

Authority is required.

(j) Number and date of the contract with over§r;is sup-

pliers.

(k) Name and address of the Overseas Supplier

(i) Nationality.

(ii) Percentage of the shares held by Nationals of the

eligible source countries.

(iii) Nationality of thp representative and|or President

of the Supplier.

<iv) Percentage of Directort, who are nationals of el--

gible source countries.

CO Payment terms and probable dates on which payments

under the contract will fall due.

(m) Expected date of completion of deliveries.

(n) Documents to be presented at the time of payment

to Bank of India, Tokyo (indicating No. of sets of

each and theii¹ disposal).

(o) Shipment instructions

(indicate if

trans-shipment

part-shipment permitted or not permitted.

(p) Name and address of the importer's bank in India.

(q) Whether a contiact(s) under the same licence has

been placed and notified to the Japanese authorities,

and if so. the No, date and value of each such con-

tract and the reference of the Ministry of Finance

under which it has been notified to the OECF.

ANNEXURE IV

(Letter of Authority Form)

No, F.

Government of India

Ministry of Finance

Department of Economic Affairs

New Delhi, the

The Bank of [udia,

Tokyo Branch,

Tokyo (Japan)

Subject.—Import

under

Yen Credit

Project

Aid—Loan

Agreement No.

j m u e

O^{f Lettei of Authority}

for opening Letter of Credit.

Dear Sirs,

In accordance with the terms and conditions of the agree-

ment dated 25-3-1980 entered into with your Bank

you

are hereby authorized to open irrevocable Letter of' Credit

for an amount not exceeding Y e n -

favouring Ml"

-an per attached details.

A copy each of the letter of credit opened by your Bank

may be endorsed to the importer's Bank; to the

OECF,

Embassy of India, Tokyo and to us.

Payments to the suppliers in terms of the letter of credit

will be made initially out of your own funds. After payments,

you must claim immediately reimbursements of the amounts

paid by furnishing necessary documents to the OECF.

For the time lag between the dates of payment by you

to the supplier and the date of its reimbursement to you

by the OECF, you will be paid interest as per terms of

ihe above agreement by the Embassy of India, Tokyo. The

other banking charges including those on account of open-

ing, maintenance and for the operation of

the Letter of

Credit as aUo those connected with

handling negotiating

documents and charges of overseas suppliers bankers,

any. are to be borne by the Overseas Suppliers and hence

not payable by the importer and may, therefore, be reco-

\ered from the Suppliers directly. As such no reimbursement

of such charges is to be claimed from the OECF.

As and when any payment is made by you and reimburse-

ment is made to you, an advice in the prescribed form should

be sent to this Ministry.

This Letter of Authority is intended for opening of J,|C

favouring the overseas suppliers. Subsequent amendments to

L|C or further fresh L[Cs against this authorisation may not

be acted upon in the absence of a specific authortiy

from

this Ministry.

This Letter of Authority will remain valid upto

Pours faithfully,

(Accounts Officer)

Copy forwaided to

1. ImporLer

— — w i t h reference to their letter No.

——

-dated-

2 ImporlorsT Bankei—

. They are icquested to

arrange to deposit the rupee equivalent of the Yen payment

to the overseas aupliers on receipt of documents from the

Bank of India, Tokyo Branch. The rupee equivalent of amount

disbursed to the suppliers will have to be calculated by

applying the composite rate of conversion as prevailing on'

the date of payment to overseas, suppliers in accordance with

the Public Notice No. 8-ITC(PN)|76 dated 17-1-1976

such other Public Notices as may be issutd from time to

time. It should be ensured that these deposits are

made

before the original set of import documents are handed over

to the importer for Customs clearance.

These amounts should be deposited either with the RBI,

New Delhi or the SB1,, Tis Hazari, Delhi. In this connection

their attention is also invited to the provisioas of the Public

Notices No. 184-ITC(PN)|68 dated 30-8-68, 233-ITC(PN)|68

dated 24-10-1968, 132-[TC(PN)|71 dated 5-10-1971, No. 74-

ITO(PN)|74 dated 31-5-1974 and No. 103-ITC(PN)|76 dated

12-10-1976. The head of Account to be credited is "K-Depo-

sits and Advances—843—Civil Deposits—Deposit

for pur-

chases etc, abroad under

Purchases

under

Credit|Loan

Agreements"—Loans from the Government of

Japan 2.6K

Billion Yen Credit (Project Aid) No. ID-P 17 for 1979-80.

One copy of the challan in original, in cases where

the

rupee equivalents are credited in cash at the RBI New Delhi

or the SBI., Tis Hazari, Delhi as prescribed to Public Notice

No. 132-TTC(PN)[71 dated 5-10-1971 should be sent by them

to the address given below alongwith a forwarding

letter

giving full details of the advice notes received from the Bank

of India, Tokyo Branch

The Controller of Aid Accounts and Audit, Ministry of

Finance (Department of Economic Affairs), 1st Floor UCO

Bank Building, Parliament Street, New Delhi-IlOOOl'.

In cases where the rupee equivalents are remitted by means

%A ?n"?^o^drafU,

**^{I a i d d o w n}

i n tn« Pl*blJc Notice dated

24-10-1968 mentioned above, intimations thereof should be

^^ntti.^tO

a d d r ew R'v«n above. 7n all cases full particulars

this D e T " *^e

q m v a l e n t s d»P°sit«d should be furnished

The Banking charges, interest and other charges

of the

Bank of Ind.a, Tokyo Branch (including charge* of the over-

sea,, supphen, bankers), if any, should be wttled by paying

THE GAZETTE OF INDIA : EXTRAORDINARY

[PART I -SEC. 1]

tbeir rupee equivalents to tht Principal Accounts Officer in

the Ministry of External Affairs, New Delhi. For this pur-

pose appropriate advices will be sent by this Department on

receipt of relevant information from the Bank

of India,

Tokyo Embassy of Indian in Japan.

3. The Director, Loan Department-ll, Overseas Economic

Cooperation Fund, Takebashi Godo Building, 4-1, Ohtema-

chi 1-Chorne, Chiyoda-Ku, Tokyo 100, Japan.

4. Embassy of India, Tokyo.

5. The Under Secretary, Japan Section, Ministry or Fin-

ance, Department of Economic Affairs, New Delhi.

Accounts Officer.

ANNEXURE V

(Form OECF-LC I)

Irrevocable Letter of Credit

(Applicable for goods)

Date :

This Letter uf Credit has been

issued pursuant to Loan Agree-

-—

•-—~ •—

incut No.

• —,

dated

.—

• —

between

(Borrower) and THE

(Name and address of the

OVLRSFAS ECONOMIC CO-

Supplicr)

OPERATION

FUND,

Dear Sirs,

We advise you that we have opened our irrevocable credit

No.——-—•—•

in your favour for accout of

—

for a sum or sums not exceeding an aggregate amount of

•Y

—

—-(Say y e n —

——-—

—-——._)

available by your drafts at sight for full invoice value drawn

on us, to be accompanied by the following documents :

Signed commercial invoice ih

Full set of clear on board <_eean bills of lading made out

to order and blank endorsed and marked "Freight and

Notify