MMTC LIMITED, SCOPE COMPLEX, LODHI ROAD, NEW DELHI, INDIA

NOTICE INVITING TENDER NO. MMTC/FERT/ UREA/2014-15/1 DATED 14.08.2014 FOR

SUPPLY OF PRILLED UREA
1.

COMMODITY

SUPPLY OF PRILLED UREA IN BULK/BAG

2.

QUANTITY

20000 MT +/- 10%. MMTC RESERVES THE RIGHT TO

DECIDE EXACT QUANTITY TO BE PURCHASED EITHER IN
FULL OR PART AND ALSO RESERVES THE RIGHT TO BUY
PART QUANTITY OUT OF THE OFFERED QUANTITY BY A
BIDDER.

3.

SHIPMENT
SHIPMENT TO SUIT ARRIVAL BY FIRST HALF OF
PERIOD/ARRIVAL SEPTEMBER

4.

SPECIFICATIONS

AS PER INDIAN FCO 1985 AND SUBSEQUENT

AMENDMENTS. THE SPECIFICATIONS ARE AS UNDER:
UREA 46% N(WHITE FREE FLOWING)
MOISTURE % BY WEIGHT, MAX 1.00
TOTAL NITROGEN, % BY WEIGHT, (ON DRY BASIS), MIN
46
BIURET % BY WEIGHT, MAX 1.5
PARTICLE SIZE NOT <90% OF THE MATERIAL SHALL
PASS THROUGH 2.8 MM IS SIEVE AND NOT < 80% BY
WEIGHT SHALL BE RETAINED ON 1 MM IS SIEVE

5.

PACKAGING
(BUYER
HOLDS
THE RIGHT TO
DECIDE
THE
FINAL FORM OF
PACKAGING)

EITHER
IN 1 MT BAGS IN SLINGS WITH MARKING AS DATE OF
IMPORT,
PURPOSE/USE
(UREA
FOR
INDUSTRIAL/TECHNICAL/NPK GRADE FERTILIZERS) AND
NOT FOR SALE ETC AND SHOULD HAVE TWO INCHES
RED COLOR BORDER ON FRONT SIDE
OR
BULK

6.

DISCHARGE PORT ANY INDIAN PORT ON EITHER WEST COAT OR IN EAST

COAST

7.

DISCHARGE RATE TO BE INDICATED BY BIDDERS

AND DESPTACH/
DEMURRAGE

8.
9.

RATE (FOR BULK

SHIPMENT)
ORIGIN
TO BE INDICATED BY BIDDERS BUT NOT FROM
NEGATIVE LIST.
PRICE
TO BE INDICATED BY BIDDERS IN U.S. DOLLARS PER
METRIC TONNE ON FOBT LOADPORT INDICATING LOAD
RATE AND LOADPORT RESTRICTIONS, IF ANY, AND C&F
FO ABOVE PORT INDICATING DISCHARGE RATE.
PLEASE NOTE THE BIDDERS ARE REQUIRED TO QUOTE
BOTH FOB/LOADPORT AND C&F/DISCHARGE PORT
PRICES.

OFFERS MADE ONLY ON C&F BASIS ARE

LIABLE FOR REJECTION.

IN CASE THE OFFER PRICE IS QUOTED IN CURRENCY
OTHER

THAN

US

DOLLARS,

FOR

PURPOSE

OF

EVALUATION ONLY, THE SBI CARD RATE ON THE DATE

OF TENDER CLOSING WILL BE USED FOR CONVERSION
OF

THE

OFFERED

PRICE

INTO

US

DOLLARS

EQUIVALENT.
THE PRICE SHOULD BE INCLUSIVE OF AGENCY
COMMISION, IF ANY, INDICATING THE PERCENTAGE OF
AGENCY COMMISION.
IN

ADDITION,

THE

BIDDERS

MUST

QUOTE

THE

INTEREST RATE APPLICABLE FOR AVAILING CREDIT

UPTO 180 DAYS. BUYER MAY OPT FOR AVAILING
CREDIT FOR 30/60/90/180 DAYS FROM THE DATE OF BILL
OF LADING.
TAXES AND DUTIES, IF ANY, PAYABLE OUTSIDE INDIA
SHALL BE TO SUPPLIERS ACCOUNT AND IN INDIA TO
BUYERS ACCOUNT. INDIGENOUS SUPPLIER SHOULD
INDICATE ALL TAXES AND DUTIES WHEREEVER
APPLICABLE AND SHALL ALSO SPECIFY THEIR SALES

TAX REGISTRATION NUMBER.

10.

PAYMENT

BY LETTER OF CREDIT PAYABLE AT SIGHT OR ON

30/60/90/180 DAYS BASIS. REIMBURSEMENT WILL BE
MADE WITHIN 5 BANKING DAYS OF RECEIPT OF
ORIGINAL DOCUMENTS AT THE COUNTER OF THE LC
OPENING BANK IF THE PAYMENT IS MADE THROUGH
LETTER OF CREDIT AT SIGHT BASIS.
IN CASE SHIPMENT FROM IRAN PAYMENT WILL BE IN
AED ON CAD BASIS.

11.

VALIDITY

VALID UPTO 1700 HRS IST ON 01-09-2014.

12.

INSPECTION

CARGO SHALL BE INSPECTED AT LOADPORT FOR

QUANTITY AND QUALITY BY AN INTERNATIONALLY
REPUTED INSPECTION AGENCY APPOINTED BY THE
BUYER

13.

EMD/ BID BOND

CATEGORY- I
PRODUCERS WHO SUBMIT THE
BIDS
DIRECTLY
(OR
THROUGH
AUTHORIZED
REPRESENTATIVE/AGENT IN INDIA) AND OFFERING
UREA FROM THEIR OWN PRODUCTION UNITS ARE
EXEMPT FROM SUBMISSION OF BID BOND. ONLY
THOSE
PRODUCERS
WILL
BE
TREATED
AS
PRODUCERS WHOSE NAMES ARE LISTED IN IFA
PUBLICATION SURVEY OF UREA CAPACITIES 1995 OR
ANY UPDATED EDITION.
CATEGORY - II
ACCREDITED
SUPPLIERS
AS
RECOGNIZED BY MMTC SHALL SUBMIT A BID BOND AT
THE RATE OF US $ 4.00 PMT OF THE QUANTITY
OFFERED. THEY SHALL ALSO SUBMIT A LATEST BANK
REFERENCE ALONG WITH THE OFFER.
CATEGORY- III
ALL OTHER BIDDERS WHO ARE
NOT COVERED ABOVE SHALL SUBMIT A BID BOND @
US $ 10.00 PMT OF THE QUANTITY OFFERED. THEY
SHALL ALSO SUBMIT D&B REPORT OF THE
BIDDER(NOT MORE THAN 12 MONTHS OLD) AS ON
DATE OF SUBMISSION OF BID. REPORT SHOULD BE OF
MINIMUM SATISFACTORY OR EQUIVALENT RATINGS.

14.

PERFORMANCE
GURANTEE BOND

IN THE EVENT OF AN OFFER BEING ACCEPTED,

PERFORMANCE GUARANTEE BOND SHALL HAVE TO BE

SUBMITTED BY THE OFFERER STRICTLY AS PER

MMTCS FORMAT ONLY (ANNEXURE-II) WITHIN 7 DAYS
FROM THE DATE OF ISSUANCE OF ACCEPTANCE OF
OFFER.
CONDITIONAL PG BONDS ARE NOT
ACCEPTABLE. THE PG BOND SHOULD BE ESTABLISHED
THROUGH ANY INDIAN SCHEDULED BANK IN NEW
DELHI. THE VALUE OF THE PG BOND IN US DOLLARS
SHALL BE AS FOLLOWS:
CATEGORY-I(PRODUCERS)

1% VALUE OF
THE CONTRACT

CATEGORYII(ACCREDITED SUPPLIERS) 3% VALUE OF

THE CONTRACT
CATEGORY- III OTHER BIDDERS

10% VALUE OF
THE CONTRACT

PLEASE NOTE THAT PG BOND SHOULD BE KEPT VALID

FOR A MINIMUM PERIOD OF ONE YEAR FROM THE LAST
DATE OF VALIDITY OF OFFER.
15.

GENERAL

(I)

(II)

(III)

(IV)

(V)

(VI)

PLEASE NOTE THAT THE FORM OF

MATERIAL SHOULD BE STRICTLY AS PER
SPECIFICATIONS AS MENTIONED ABOVE.
INDIAN AGENTS COMMISSION, IF ANY,
WILL BE PAID ONLY IN INDIAN RUPEES
AND DEDUCTED FROM THE INVOICE
VALUE. PAYMENTS ARE SUBJECT TO
STATUTORY DEDUCTIONS.
IN CASE BIDDERS WHO ARE NOT
MANUFACTURERS MUST FURNISH THE
NAME OF THE MANUFACTURER WHO
SHALL SUPPLY THE PRODUCT AND THE
COUNTRY OF ORIGIN TOGETHER WITH
SUPPORT LETTER IN ORIGINAL FROM THE
MANUFACTURER.
BIDDER WILL SIGN THE INTEGRITY PACT
AS PER ENCLOSED ANNEXURE III WHICH
IS THE INTEGRAL PART OF THE TENDER
DOCUMENTS, FAILING WHICH THE
TENDERED/BIDDER
WILL
STAND
DISQUALIFIED FROM THE TENDDERING
PROCESS AND THE BID OF THE BIDDER
WOULD BE REJECTED.
MMTC RESERVES THE RIGHT TO ACCEPT
OR REJECT ANY OR ALL TENDERS OR TO
RE-TENDER
AT
MMTCS
SOLE
DISCRETION WITHOUT ASSIGNING ANY
REASONS.
CONTRACT SHALL BE CONSTRUCTED

(VII)

(VIII)

(IX)
(X)

(XI)

(XII)

(XIII)

(XIV)

AND GOVERNED BY INDIAN LAW.

IN CASE BIDDERS ARE FINDING IT
DIFFICULT TO PROVIDE FOR US $ BID
BOND/ PG, BIDDERS MAY SUBMIT THE
SAME IN EQUIVALENT RUPEES
QUALITY SHOULD BE CONFIRMED AT
DISCHARGE PORT BY RFCQL/CFCQL AND
FINDINGS OF THE SAME WILL BE
BINDING ON BOTH PARTIES. IN CASE OF
ANY VARIATION IN QUALITY, THE
ENTIRE LOT WILL BE REJECTED.
DISCHARGE PORT JOINT DRAFT SURVEY
QUANTITY SHALL BE FINAL.
THE PAYMENT FOR SHORT LANDED
QUANTITY, IF ANY, AS PER DISCHARGE
PORT DRAFT SURVEY SHALL BE
COMPENSATED BY THE SELLER TO
MMTC.
SELLER SHOULD NOT CHARTER VESSEL
OF MORE THAN 15 YEARS OF AGE. IN
CASE OF NECESSITY, SHOULD TAKE
PRIOR APPROVAL OF MMTC. OVERAGE
INSURANCE PREMIUM SHALL BE TO
SELLERS ACCOUNT.
VESSEL SHOULD BE SINGLE DECKER,
FITTED WITH CRANES OF MINIMUM 25 MT
SWL.
HATCH COVERS SHOULD BE
HYDRAULICALLY OPERATED.
THE
SCALE
OF
PANALTIES
FOR
DEVIATION IN QUALITY AND DEFAULT IN
PERFORMANCE BY THE SELLER SHALL BE
AS PER OUR STANDARD UREA IMPORT
CONTRACT.
OTHER TERMS WILL BE SIMILAR TO THE
CONTRACT FOR FERTILIZER IMPORTS BY
MMTC.

THE BIDS (BOTH TECHNICAL AND PRICE) ARE TO BE SUBMITTED

PHYSICALLY IN SEALED ENVELOPES TO BE DROPPED IN TENDER BOX,
LATEST BY 1100 HRS IST ON 21.08.2014, PLACED AT MMTC LIMITED,
FERTILIZER DIVISION, 7TH FLOOR, CORE 1, SCOPE COMPLEX, LODHI
ROAD, NEW DELHI.

GENERAL MANAGER (FERT.)

ANNEXURE-I
BID BOND PROFORMA
(ON A STAMP PAPER OF RS. 100/- TO BE EXECUTED BY A
DELHI/NEW DELHI BRANCH OF ANY SCHEDULED BANK OF INDIA)
M/S. MMTC LTD.,
FERTILIZER DIVISION, CORE NO.1
SCOPE COMPLEX
7- INSTITUTIONAL AREA, LODI ROAD,
NEW DELHI-110 003. INDIA.
DEAR SIRS,
WHEREAS M/S. ________________________________________ (OFFEROR) HAS
OFFERED TO SUPPLY A QUANTITY OF _________ MTS OF PRILLED UREA TO
MMTC AND THE OFFEROR IS REQUIRED TO SUBMIT A BID BOND IN US
DOLLARS AT THE RATE OF USD ..... PMT FOR THE QUANTITY OFFERED
ALONGWITH THE OFFER AS A GUARANTEE FOR FULFILLMENT OF ALL THE
TERMS AND CONDITIONS OF SUBSEQUENT SALE, WE (BANK WITH FULL
ADDRESS) HEREBY GUARANTEE AND UNDERTAKE TO PAY IMMEDIATELY
ON DEMAND BY MMTC LTD., NEW DELHI THE AMOUNT OF US$
_____________ IN CASE THE OFFEROR FAILS TO PERFORM ANY OR ALL THE
OBLIGATIONS, UNDERTAKEN BY HIM AS PER MMTCS ACCEPTANCE
WITHOUT RESERVATION, PROTEST, DEMUR AND RECOURSE TO SAID
OFFEROR. ANY SUCH DEMAND IN WRITING MADE BY MMTC SHALL BE
CONCLUSIVE AND BINDING ON US IRRESPECTIVE OF ANY DISPUTE OR
DIFFERENCE RAISED BY THE OFFEROR.

NOTWITHSTANDING ANYTHING MENTIONED HEREIN BEFORE, OUR

LIABILITY UNDER THE GUARANTEE IS RESTRICTED TO US$ ____________
(US DOLLARS ___________________ ______________ ONLY) AND IT WILL
REMAIN IN FORCE UPTO ___________ UNLESS A CLAIM UNDER THE
GUARANTEE IS FILED AGAINST US ON OR BEFORE __________ ALL YOUR
RIGHTS UNDER THE SAID GUARANTEE SHALL BE FOREFEITED AND WE
SHALL BE RELIEVED AND DISCHARGED FROM ALL THE LIABILITIES
THEREUNDER. WE, __________________________ BANK FURTHER AGREE
THAT THE GUARANTEE HEREUNDER CONTAIN SHALL NOT SO AFFECTED
BY CHANGE IN THE TERMS OF PURCHASE ORIGINALLY OFFERED BY THE
OFFEROR.
DATED:

FOR

PLACE:

BANK

ANNEXURE II
PERFORMANCE GUARANTEE BOND PROFORMA
(TO BE ISSUED BY ANY SCHEDULED BANK OF INDIA ON STAMP PAPER OF
RS. 100/-)

M/S. MMTC LTD.,

FERTILIZER DIVISION
CORE NO.1,
SCOPE COMPLEX,
7, INSTITUTIONAL AREA,
LODI ROAD,
NEW DELHI-110 003 (INDIA)
1.
AGAINST
CONTRACT
NO.
___________________________
DATED___________ (HEREINAFTER CALLED THE SAID CONTRACT)
ENTERED INTO BETWEEN THE MMTC LTD., (HEREINAFTER CALLED THE
BUYERS) AND M/S.______________________________ (HEREINAFTER CALLED
THE SELLERS) THIS IS TO CERTIFY THAT AT THE REQUEST OF THE SELLERS,
WE ___________________ BANK ARE HOLDING IN TRUST IN FAVOUR OF THE
BUYERS, THE AMOUNT OF US$ _______________ PAYABLE TO THE BUYERS
ON DEMAND IMMEDIATELY WITHOUT PROTEST OR DEMUR OR REFERENCE
TO THE SELLERS IF THE SELLERS FAIL TO PERFORM ALL OR ANY OF THEIR
OBLIGATIONS UNDER THE SAID CONTRACT OR SUPPLY MATERIAL SHORT
THAN THE CONTRACTED QUANTITY AS REVEALED BY DRAFT SURVEY AT
THE DISCHARGE PORT OR IF PENALTIES ARE LEVIED DUE TO QUALITY
DEVIATIONS (NUTRIENTS/ MOISTURE/PARTICLE SIZE ) FROM CONTRACTUAL
SPECIFICATIONS AS REVEALED BY DISCHARGE PORT ANALYSIS REPORT OR
LIABILITY TOWARDS DEAD FREIGHT AND DESPATCH/DEMURRAGE NOT
SETTLED. THE DECISION OF THE BUYERS DULY COMMUNICATED IN
WRITING TO THE BANK THAT THE SELLER HAVE FAILED TO PERFORM ALL
OR ANY OF THE OBLIGATIONS UNDER THE CONTRACT OR HAVE DELIVERED
SHORT QUANTITY AT THE DISCHARGE PORT AS PER SURVEY REPORT AT
THE DISCHARGE PORT/OR PENALTIES HAVE BEEN LEVIED DUE TO QUALITY
DEVIATIONS (NUTRIENTS/MOISTURE/PARTICLE SIZE) FROM CONTRACTUAL
SPECIFICATIONS AS PER ANALYSIS REPORT AT THE DISCHARGE PORT OR
HAVE NOT SETTLED DESPATCH/DEMURRAGE. AND DEAD FREIGHT SHALL
NOT BE QUESTIONED AND SHALL BE FINAL AND CONCLUSIVE
(IRRESPECTIVE OF THE STAND THAT MAY BE TAKEN BY OR ON BEHALF OF
THE SELLERS). THE SAID AMOUNT OF US$ __________ WILL ACCORDINGLY
FORTHWITH BE PAID WITHOUT ANY CONDITIONS OR PROOF WHATSOEVER.

2.
IT IS FULLY UNDERSTOOD THAT THIS GUARANTEE IS EFFECTIVE
FOR A PERIOD OF ONE YEAR FROM THE DATE OF THIS GUARANTEE AND
THAT WE _____________________ BANK UNDERTAKE NOT TO REVOKE THIS
GUARANTEE DURING ITS CURRENCY WITHOUT THE CONSENT IN WRITING
OF THE BUYERS.
3.
WE, _______________ BANK, FURTHER AGREE THAT THE BUYERS
SHALL HAVE THE FULLEST LIBERTY, WITHOUT AFFECTING IN ANY
MANNER OUR OBLIGATIONS HEREUNDER TO VARY ANY OF THE TERMS
AND CONDITIONS OF THE SAID CONTRACT OR TO EXTEND TIME OF
PERFORMANCE BY THE SELLERS FROM TIME TO TIME OR TO POSTPONE
FOR ANY TIME OR FROM TIME TO TIME ANY OF THE POWERS
EXERCISABLE BY THE BUYERS AGAINST THE SAID SUPPLIERS AND/OR
FOREBEAR TO ENFORCE ANY OF THE TERMS AND CONDITIONS RELATING
TO THE SAID CONTRACT AND WE, _____________________ BANK, SHALL
NOT BE RELEASED FROM OUR LIABILITIES UNDER THIS GUARANTEE BY
REASON OF ANY SUCH VARIATIONS OR EXTENSION BEING GRANTED TO
THE SAID SELLERS OR FOR ANY FORBEARANCE AND/OR OMISSION ON THE
PART OF THE BUYERS, OR ANY INDULGENCE BY THE BUYERS, TO THE
SAID SELLERS OR BY ANY OTHER MATTER OR THING WHATSOEVER
WHICH UNDER THE LAW RELATING TO THE SURETIES WOULD, BUT FOR
THIS PROVISION HAVE THE EFFECT OF SO RELEASING US FROM OUR
LIABILITY UNDER THIS PERFORMANCE GUARANTEE.
4.
WE, ________________________ BANK, FURTHER AGREE THAT THE
GUARANTEE HEREIN CONTAINED SHALL NOT BE AFFECTED BY CHANGE
IN THE CONSTITUTION OF THE SAID SUPPLIER/ IMPORTER/CONSIGNEE.
FOR __________________________ BANK
ACCEPTED

ANNEXURE III
INTEGRITY PACT
Between
MMTC Limited hereinafter, referred to as MMTC,
And
.. hereinafter referred to as The Buyer/Vendor/Bidder
Preamble
WHEREAS, MMTC is an international trading company dealing in export/import/sale/purchase
of various commodities; WHEREAS, MMTC values full compliance with all relevant laws of the
land, rules, regulations and the principles of economic use of resources and of fairness /
transparency in its relation with its Buyer/Vendor/Bidder.

IN PURSUANCE, thereto, the

following clauses of the Integrity Pact will be applicable and this document shall deem to be an
integral part of the Agreement/ Contract between us.
In order to achieve the goals, MMTC may appoint an Independent External Monitor (IEM), who
will monitor the tender/auction/e-auction/e-sale/sale/purchase process and the execution of the
contract for compliance with the principles mentioned above.
Section 1 Commitments of MMTC
1.

MMTC commits itself to take all necessary measures to prevent corruption and to

observe the following principles:

a)

No employee of MMTC, personally or through family members, will in connection with

the tender for, or the execution of a contract, demand, take a promise for or accept, for
himself/herself or third person, any material or non-material benefit which he/she is not
legally entitled to.

b)

MMTC will, during the tender/auction/e-auction/e-sale/sale/purchase process, provide to

all Buyer(s)/Vendor(s)/Bidder(s) the same information and will not provide to any
Buyer/Vendor/Bidder any confidential/additional information through which the
Buyer/Vendor/Bidder could obtain an advantage in relation to the tender/auction/eauction/e-sale/sale/purchase process or the contract execution.

c)

MMTC will exclude from the process all known prejudiced persons.

2.

If MMTC obtains information on the conduct of any of its employees which is a criminal

offence under the relevant Anti-Corruption Laws of India, or if there be a substantive suspicion in
this regard, MMTC will inform its Chief Vigilance Officer and in addition can initiate
disciplinary action.
Section 2 Commitments of the Buyer(s)/Vendor(s)/Bidder(s)
1.

The Buyer(s)/Vendor(s)/Bidder(s) commits himself to take all measured necessary to

prevent corruption.

He commits himself to observe the following principles during his

participation in the tender/auction/e-auction/e-sale/sale/purchase process and during the contract

execution.
a)

The Buyer(s)/Vendor(s)/Bidder(s) will not, directly or through any other person or firm,
offer, promise or give to any of MMTCs employees involved in the tender/auction/eauction/e-sale/sale/purchase process or the execution of the contract or to any third
person any material or non-material benefit which he/she is not legally entitled to, in
order to obtain in exchange any advantage of any kind whatsoever during the tender
process or during the execution of the contract.

b)

The Buyer(s)/Vendor(s)/Bidder(s) will not enter with other Buyer(s) into any illegal
agreement or understanding, whether formal or informal. This applies in particular to
prices, specifications, certifications, subsidiary contracts, submission or non-submission
of bids or any other actions to restrict competitiveness or to introduce cartelization in the
bidding process.

c)

The Buyer(s)/Vendor(s)/Bidder(s) will not commit any criminal offence under the
relevant Anti-Corruption Laws of India; further the Buyer(s) /Vendor(s)/Bidder(s) will
not use improperly, for purposes of competition or personal gain, or pass on to others,
any information or document provided by MMTC as part of the business relationship
regarding proposals, plans, business details including information contained or
transmitted electronically.

d)

The Buyer(s)/Vendor(s)/Bidder(s) of foreign origin shall disclose the name and address
of the Agents/representatives in India, if any. Similarly the Buyer(s)/Vendor(s)/Bidder(s)
of Indian Nationality shall furnish the name and address of the foreign principals, if any.
Further, all the payments made to the Indian agents/representative have to be in Indian
Rupees only.

e)

The Buyer(s)/Vendor(s)/Bidder(s) will, when presenting his bid, disclose any and all
payments he has made, is committed to or intends to make to agents, brokers or any other
intermediaries in connection with the award of the Contract.

2.

The Buyer(s)/Vendor(s)/Bidder(s) will not instigate third persons to commit offences

outlined above or be necessary to such offences.

Section 3 Disqualification from tender process and exclusion from future contracts.
If the Buyer(s)/Vendor(s)/Bidder(s), before award of contract, has committed a serious
transgression through a violation of Section 2 above or in any other form such as to put his
reliability or credibility as buyer/vendor/bidder into question, MMTC is entitled to disqualify the
Buyer(s)/Vendor(s)/Bidder(s) from the tender/auction/e-auction/e-sale/sale/purchase process or to
terminate the contract, if already signed, for such reason.
a)

If the Buyer(s)/Vendor(s)/Bidder(s) has committed a serious transgression through a

violation of Section 2 above or in any other form such as to put his reliability or
credibility as buyer/vendor/bidder into question, MMTC is entitled to also exclude the
Buyer(s)/Vendor(s)/Bidder(s) from the future contract award processes. The imposition
and duration of the exclusion will be determined by the severity of the transgression. The
severity will be determined by the circumstances of the case, in particular the number of
transgression, the position of the transgressors within the company, hierarchy of the
buyer and the amount of the damage. The exclusion will be imposed for a minimum of 6
months and maximum of 3 years.

b)

If the Buyer(s) /Vendor(s)/Bidder(s) can prove that he has restored/recouped the damage
caused by him and has installed a suitable corruption prevention system, MMTC may at
its sole discretion revoke the exclusion prematurely.

c)

A transgression is considered to have occurred if in light of available evidence no

reasonable doubt is possible.

Section 4 Compensation for Damages

1.

If MMTC has disqualified the Buyer(s) from the tender/auction/e-auction/e-

sale/sale/purchase process prior to the award according to Section 3, MMTC is entitled to demand
and recover the damages equivalent to Earnest Money Deposit/Bid Security.
2.

If MMTC has terminated the contract according to Section 3, or if MMTC is entitled to

terminate the contract according to Section 3, MMTC shall be entitled to demand and recover
form the Vendor liquidated damages equivalent to 5% of the Contract value or the amount
equivalent to Performance Bank Guarantee whichever is higher.
3.

If the Buyer(s) /Vendor(s)/Bidder(s) can prove that the exclusion of the Buyer(s)

/Vendor(s)/Bidder(s) from the tender/auction/e-auction/e-sale/sale/purchase process or the

termination of the contract after the contract award has caused no damage or less damage than the
amount of liquidated damages, the Buyer(s) /Vendor(s)/Bidder(s) may compensate only the

damage in the amount proved. If MMTC can prove that the amount of the damage caused by the
disqualification of the Buyer(s)/Vendor(s)/Bidder(s) before Contract Award or the termination of
the Contract after the Contract Award is higher than the amount of the liquidated damages, it is
entitled to claim compensation for the higher amount of the damages.
Section 5 Previous transgression
1.

The Buyer(s)/Vendor(s)/Bidder(s) to declare that no previous transgressions occurred in

the last 3 years with any other Company in any country conforming to the anti corruption
approach or with any other Public Sector Enterprise in India that could justify his exclusion from
the tender process.
2.

If the Bidder makes incorrect statement on this subject, he can be disqualified from the

tender process or the contract, if already awarded and can be terminated for such reason.
Section 6 Equal treatment of all Buyer(s) /Vendor(s)/Bidder(s)
1.

MMTC will enter into agreements with identical conditions as this one with all Buyer(s)

/Vendor(s)/Bidder(s) without any exception.

2.

MMTC will disqualify from the tender process all Buyer(s)/Vendor(s)/Bidder(s) who do

not sign this Pact or violate its provisions.

Section 7 Criminal charges against violating Buyer(s)/Vendor(s)/Bidder(s)
If MMTC obtains knowledge of conduct of Buyer(s)/Vendor(s)/Bidder(s) or of an employee or a
representative or an associate of Buyer(s)/Vendor(s)/Bidder(s), which constitutes corruption, or if
MMTC has substantive suspicion in this regard, MMTC will inform the same to its Chief
Vigilance Officer and/or appropriate Govt. authorities such as CBI.
Section 8 Independent External Monitor(s)
1.

MMTC appoints competent and credible Independent External Monitor (IEM) for this

Pact. The task of the IEM is to review independently and objectively, whether and to what extent
the parties comply with the obligations under this agreement.
2.

The IEM is not subject to instructions by the representatives of the parties and performs

his functions neutrally and independently. He reports to the CMD, MMTC.

3.

The IEM has the right to access without restriction to all trade/project related

documentation of MMTC. The Buyer(s)/Vendor(s)/Bidder(s) will also grant the IEM, upon his
request and demonstration of a valid interest, unrestricted and unconditional access to his
trade/project documentation. The IEM is under contractual obligation to treat the information and
documents of the Buyer(s)/Vendor(s)/Bidder(s) with confidentiality.

4.

MMTC will provide the IEM sufficient information about all meetings among the parties

related to the project/contract provided as meetings could have an impact on the contractual
relations between MMTC and the vendor. The parties offer to the IEM the option to participate
in such meetings.
5.

As soon as the IEM notices, or believes to notice, a violation of this agreement, he will so

inform the Management of MMTC and request the Management to discontinue or take corrective
action, or to take other relevant action. The IEM can in this regard submit NON-BINDING
RECOMMENDATIONS. Beyond this, the IEM has not right to demand from the parties that
they act in a specific manner, refrain from action or tolerate action.
6.

The IEM will submit a written report to the CMD, MMTC within 4 to 6 weeks from the

date of reference or intimation to him by MMTC and, should the occasion arise, submit proposals
for correcting problematic situations.
7.

If the IEM has reported to the CMD, MMTC, a substantiated suspicion of an offence

under relevant Anti Corruption Laws of India, and the CMD, MMTC, has not, within the
reasonable time taken visible action to proceed against such offence or reported it to its Chief
Vigilance Officer, the IEM may also transmit this information directly to the Central Vigilance
Commissioner, Govt. of India.
8.

The word IEM would include both singular and plural.

Section 9 Pact Duration

1.

This Pact begins when both parties have legally signed it. It expires for the Vendor 12

months after the last payment under the contract, and for all other Bidders, 6 months after the
Contract has been awarded.
2.

If any claim is made/lodged during this time, the same shall be binding and continue to

be valid despite the lapse of this pact as specified above, unless it is discharged/determined by
CMD, MMTC.
Section 10 Other provisions
1.

This agreement is subject to Indian Law, Place of performance and jurisdiction is the

Registered Office of MMTC, i.e. New Delhi.

2.

Changes and supplements as well as termination notices need to be made in writing. Side

agreements have not been made.

3.

If the Vendor is a partnership or a consortium, this agreement must be signed by all

partners or consortium members.

4.

Should one or several provisions of this agreement turn out to be invalid, the remainder

of this agreement remains valid. In this case, the parties will strive to come to an agreement to
their original intentions.

(For & on behalf of MMTC)

(Office Seal)
Place : .
Date : .
Witness 1 : .
Name :
Address :
Witness 2 :
Name :
Address :

(For & on behalf of Buyer/Vendor/Bidder)

(Office Seal)