SERVICE LEVEL AGREEMENT/CONDITIONS OF CONTRACT

1. TERMS AND CONDITIONS

1. DEFINITIONS:
i. The word "Company” or "Employer" or "Owner" wherever occurs in the conditions,
means the Central Coalfields Limited, represented at the headquarters of the Company
by the Director (Technical) or his authorized representative or any other officer
specially deputed for the purpose.
ii. The word “Principal Employer" wherever occurs, means the authorized representative
or any other officer specially deputed by the Company for the purpose.
iii. The word "Contractor"/"Contractors" wherever occurs means the successful
Bidder/Bidders who has/have deposited the necessary Earnest Money and has/have
been given written intimation about the acceptance of tender and shall include legal
representative of such individual or persons composing a firm or a Company or the
successors and permitted assignees of such individual, firm or Company, as the case
may be.
iv. "The Site" shall mean the site of the contract work including land and any building
and erections thereon and any other land allotted by the Company for Contractor's
use.
v. 'Tender Accepting Authority (TAA)/ Awarding Authority' shall mean the
management of the Company and includes an authorized representative of the
Company or any other person or body of persons empowered in this behalf by the
Company to approve the Tender.
Tender Accepting Authority (TAA)/Awarding Authority at any time after the award
of tender till the finalization of contract shall be construed as the authority as per the
prevalent DoP of CIL/Subsidiary.
Note: Interpretation of Tender Accepting Authority (TAA)/ Awarding Authority as
above is applicable for the existing and future contracts.
vi. A 'Day 'shall mean a day of 24 hours from midnight to midnight.
vii. Engineer-In-Charge/Designated Officer-in-charge who is of an appropriate seniority
will be responsible for supervising and administering the contract, certifying payment
due to the Contractor, valuing variations to the contract, awarding extension of time
and valuing compensation events. Engineer-In-Charge/Designated Officer-in-charge
may further appoint his representatives i.e. another person/ Project Manager or any
other competent person and notify to the Contractor who is directly responsible for
supervising the work being executed at the site, on his behalf under the Delegation of
Powers of the Company. However, overall responsibility, as far as the contract is
concerned will be that of the Engineer-In- Charge/Designated Officer-in-charge.
viii. The 'Contract' shall mean the Bid Document, the tender as accepted by the Company
and the formal agreement executed between the Company and the Contractor together
with the documents referred to therein including General Terms and Conditions of
GeM, Service Level Agreement (Terms and Conditions, Special Conditions, if any),
schedule of quantities with rates and amounts, Schedule of work. Until the formal
agreement is signed between the Owner and the Contractor, LOA/Work Order
together with Contract Document, shall constitute the Contract.

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 ix. The 'Works' shall mean the works required to be executed in accordance with the
contract or parts thereof as the case may be and shall include all extra or additional or
any work of emergent nature, which in the opinion of the Engineer-In-Charge,
become necessary during the progress of the works to obviate any risk or accident or
failure or become necessary for security.
x. 'Schedule of Rates' referred to in these conditions shall mean the standard schedule of
rates prescribed by the Company and the amendments issued from time to time. Note:
- Functional Directors of Subsidiaries to approve the Schedule of Rates for Coal
Transportation, OB Removal, OB removal & Coal evacuation/ transportation
(composite) etc.
xi. 'Contract price' shall mean
a) in the case of lump sum contracts the total sum for which tender is accepted by the
Company.
b) in the case of other types of contracts, the total sum arrived at based on the individual
rates quoted by the tenderer for the various items shown in the 'Bill of quantities' of
the tender documents as accepted by the Company with or without any alteration as
the case may be.
xii. 'Written notice' shall mean a notice or communication in writing and shall be deemed
to have been duly served if delivered in person to the individual or to a member of the
firm or to an office of the Corporation/Company for whom it is intended, or if
delivered at or sent by registered mail to the last business address known to him who
gives the notice.
2. CONTRACT DOCUMENTS:
The following documents shall constitute the contract documents:
(i) Articles of Agreement,
(ii) Scope of Work and Instruction to Bidders,
(iii) GTC as per Bid Document of GeM
(iv) Service Level Agreement / Conditions of Contract forming part of the Agreement,
(v) Letter of Acceptance of Bid indicating deviations, if any, from the Conditions of
Contract incorporated in the Bid/Tender document issued to the Bidder,
(vi) Bills of Quantities,
(vii) Finalized work programme,
(viii) Integrity Pact as applicable,
(ix) Guidelines on Debarment of firms from Bidding,
(x) Code of Integrity for Public Procurement.
(xi) Any other document, if required.
2.1 After acceptance of Bid and on execution of Contract/issue of Work Order to proceed
with the work, as the case may be, the Contractor shall be furnished, free of charge, two
copies of contract documents. (certified true copies), excepting those drawings to be supplied
during the progress of work. The Contractor shall keep copy of these documents on the
site/place of work in proper manner so that these are available for inspection at all reasonable

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 times by the Engineer-In-Charge, his representatives or any other officials authorized by the
Company for the purpose.
2.2 None of these documents shall be used by the Contractor for any purpose other than this
contract and the Contractor shall ensure that all persons employed for this contract strictly
adhere to this and maintain secrecy, as required of such documents.
3. DISCREPANCIES AND ADJUSTMENTS THEREOF:
The documents forming part of the contract are to be treated as mutually explanatory.
3.1 In the event of varying or conflicting provisions made in any of the document/documents
forming part of the contract, the Tender Accepting Authority's decision/clarification shall
hold good with regard to the intention of the document or contract, as the case may be.
3.2 Any error in description, quantity or rate in schedule or quantities or any omission
therefrom, shall not vitiate the contract or release the Contractor from discharging his
obligations under the contract including execution of work according to the specifications
forming part of the particular contract document.
3.3Any difference detected in the tender/tenders submitted, resulting from:
a. discrepancy between description in words and figures the rate which corresponds to the
words quoted by the Contractor shall be taken as correct.
b. discrepancy in the amount quoted by the Contractor due to calculation mistake of the unit
rate and quantity, the unit rate shall be regarded as firm and amount corrected.
c. discrepancy in totaling or carry forwards in the amount quoted by the Contractor shall be
corrected.
The tendered sum so corrected and altered shall be substituted for the sum originally tendered
and considered for acceptance instead of the original sum quoted by the tenderer along with
other tender/tenders. Rounding off to the nearest rupee should be done in the final summary
of the amount instead of in totals of various sections of schedule of quantities.
4. SECURITY DEPOSIT:
4.1 Security Deposit shall consist of two parts:
a) Performance Security to be submitted at award of work and
b) Retention Money to be recovered from running bills.
The Security Deposit shall bear no interest.
4.2 Performance Security (first part of Security Deposit) should be 5% of annualized value of
contract amount or contract amount, whichever is less and should be submitted within 21
days of issue of LOA, by the successful Bidder in any of the form given below:
- A Bank Guarantee (BG) in the form given in the bid document from any Scheduled Bank.
The BG issued by outstation bank shall be operative at its local branch……. or branch
at…………….
- Govt. Securities, FDR (Scheduled Bank) or any other form of deposit Stipulated by the
owner.
- Demand Draft drawn in favour of ………………. on any Scheduled Bank payable at its
Branch at……….

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However, Company may approve submission of Performance Security beyond 21 days by
another 14 days with proper justification on a case to case basis.
The Earnest Money/Bid Security deposited is to be returned to the Contractor after
submission of Performance Security. The Earnest Money/Bid Security deposited may be
adjusted against the SecurityDeposit (Performance Security) at Bidder’s option.
4.3 If Performance Security is provided by the successful Bidders in the form of Bank
Guarantee it shall be issued either –
(a) at Bidder’s option by a Scheduled Bank
or
(b) by a Foreign Bank located in India and acceptable to the Employer.
(c) The validity of the Bank Guarantee shall be for a period of “one year” or “ninety days
beyond the period of contract/extended period of contract (if any)”, whichever is more.
However, if the contract period is for more than 03 years, then period of validity of the BG
should be for at least 03 years with a provision that timely action for extension of the BG
should be undertaken at least 03 months before the end of validity.
The subsequent extension shall be for a period of “one year” or “ninety days beyond the
period of contract/extended period of contract” if balance period is less than 3 years, else the
process will repeat as above.
Not less than 30 (thirty) days prior to expiry of a Performance Security, the Contractor shall
furnish an extended, renewed or replacement Performance Security to the Authority, failing
which the Authority shall be entitled to, after giving 5 (five) days’ notice to the Contractor,
draw down the full remaining value of the Performance Security, and hold the amount as
security for performance of the Contractor’s obligations under this Agreement.
The BG shall be encashed at least 07 days (excluding date of intimation and bank holiday)
prior to expiry of BG.
BG of scheduled commercial bank located in India and acceptable to the company should
only be accepted. Thus, any BG issued by foreign bank from outside India shall not be
accepted.
Bank Guarantee (BG) is to be submitted in the format prescribed by the Company. Bank
Guarantee shall be irrevocable and it shall be issued by any Indian Nationalized
Bank/Scheduled Bank on Structured Financial Messaging System (SFMS) platform which is
payable / enforceable at ……..
The paper BG would be delivered by Issuing Bank to the Beneficiary under Speed
Post/Registered Post (AD). Original Bank Guarantee shall be accepted from Issuing Bank
only. However, the paper BG would be operative only on receipt of a separate advice through
SFMS and confirmed by the Advising Bank (i.e. Beneficiary Bank). The confirmation of
issuance of BG through SFMS from Advising Bank shall be obtained through electronically
as well as print out of the said message from Advising Bank with seal and signature.
The details of Beneficiary for issue of BG under SFMS platform is furnished below:
Name Central Coalfields Limited
Name of Area *
beneficiary and Bank A/C no. of 10106155123
details beneficiary
Customer ID/CIF no. 80288731402

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 of beneficiary
Department **
Beneficiary’s Beneficiary’s Bank State Bank Of India ICICI Bank Ltd.
Bank, Branch and Branch and Address SME Branch, Doranda, Ratu Road Branch,
Address Ranchi-834002 Ranchi
SFMS Code/ IFSC SBIN0009620
ICIC0001150
Code
SWIFT CODE *** SBININBB387
Identifier Code CCL557642336
* HQ /Name of the Area of CCL
** Civil/Excv./E&M/CMC/MM etc. as applicable.
*** In case of foreign BG, SWIFT code to be used instead of SFMS code.
NOTE: - The department shall ensure extension of guarantee period in case of extension of time.
The above particulars are to be incorporated by the Issuing Bank properly while issuing BG
under SFMS mode to avoid any problem in future.
Original Bank Guarantee (issued by the Issuing Bank) shall be sent by the Issuing Bank to
concerned Department by Registered Post (AD).
In case the successful Bidder fails to submit the Performance Security and Additional
Performance Security, if any, within the stipulated time then the award of work may be
cancelled with forfeiture of the Bid Security/Earnest Money.
Additionally, the Company shall debar such defaulting Contractor from participating in future
tenders in concerned Subsidiary/CIL HQ for a period of minimum one year from the date of
issue of such letter.
In case of JV/CONSORTIUM/Partnership firm, the debarment shall also be applicable to all
individual partners of JV/CONSORTIUM/Partnership firm.
However, debarment shall be done as per Guidelines for Debarment of firms from Bidding.
Safe Custody and Monitoring of Securities-
The BG Details after confirmation and acceptance shall be entered in SAP by Associate
Finance and its validity expiry shall be monitored through SAP. The BG shall be sent by
Associate Finance to Corporate Finance CIL/ Subsidiary for safe custody. Extension of bank
guarantees and other instruments, where warranted, should be sought immediately and
implemented within their validity period.
For release of BGs, the proposal shall be forwarded by EIC with their recommendations in
accordance with the contract conditions, for approval by the Competent Authority with the
concurrence of the Finance Division.
4.4 All Running on Account Bills shall be paid at 97%. The balance 3% shall be treated as
Retention Money and will be second part of security deposit.
For contracts of more than one year, Retention Money may be refunded to the Contractor
annually on submission of Bank Guarantee of equivalent amount subject to satisfactory
performance of the Contractor during the year.
The validity of the Bank Guarantee shall be for 270 days beyond the period of contract for
extended period of contract or one year whichever is more.
4.5 Refund of Security Deposit:
The refund of Security Deposit shall be subject to Company's right to deduct/appropriate its
dues against the Contractor under this contract or under any other contract. On completion of

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the work and certified as such by the Engineer-In-Charge, the Security Deposit remaining
with the Company shall be refunded.
Performance Security (1stpart of security deposit) shall be refunded within 60 days of the
completion of the work. (The date of completion of the work will be certified by the
Engineer-In-Charge).
Retention Money (2nd part of security deposit) shall be refunded within 150 days of the
completion of the work. (The date of completion of the work will be certified by the
Engineer-In-Charge).
4.6 Additional Performance Security (APS):
There should be no provision in the Bid Documents regarding submission of Additional
Security Deposit / Bank Guarantee (BG) in case of Abnormally Low Bids. There shall be a
provision in the Bid document regarding Abnormally Low Bid that the Procuring Entity may
in such cases seek written clarifications from the Bidder, including detailed price analyses of
its bid price in relation to scope, schedule, allocation of risks and responsibilities, and any
other requirements of the bids document. lf, after evaluating the price analyses, Procuring
Entity determines that the Bidder has substantially failed to demonstrate its capability to
deliver the contract at the offered price, the Procuring Entity may reject the bid/ proposal.
As a safeguard, it should be closely monitored that final payments in such cases do not
abnormally increases due to extra items. Further, there is no abnormal increase in quantities
of the item for which contractors have initially quoted very high rates.
Such Additional Performance Security (APS) shall be applicable if the bid price is below
15% of the updated/justified cost Finalized by the Owner as on the last date of Bid
submission. The amount of such APS shall be the difference between 85% of the
updated/justified cost Finalized by the Owner as on the last date of Bid submission and
quoted price.
Updated/justified cost shall be based on prevalent market rate of material components and
Labour components, analysed as per standard analysis of rate adopted in the preparation of
SOR.
Approving Authority of updated/justified cost shall be the authority who has approved the
estimate for the Tender/as per existing guidelines in this regard.
Additional Performance Security (APS) shall be furnished within 21 days of issuance of LOA
by the successful Bidder.
Failure to submit such Additional Performance Security shall result into cancellation of the
contract with forfeiture of earnest money.
Additionally, the Company shall debar such defaulting Contractor from participating in future
tenders in concerned Subsidiary/CIL HQ for a period of minimum one year from the date of
issue of such letter. In case of JV/CONSORTIUM/Partnership firm, the debarment shall also
be applicable to all individual partners of JV/CONSORTIUM/Partnership firm.
However, debarment shall be done as per Guidelines on Debarment of firms from Bidding.]
In case the work is awarded with Additional Performance Security, it may be furnished in any
of the forms as applicable for Performance Security.
The validity of the Bank Guarantee if APS submitted in the form of BG shall be for a period
of one year or ninety days beyond the period of contract /extended contract period (if any),
whichever is more.

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This Additional Performance Security will not carry any interest and shall be released in the
following manner:
I. 30% of Additional Performance Security will be released after 60% of the total work is
completed.
II. 50% of Additional Performance Security will be released after 80% of the total work is
completed.
III. 100% of Additional Performance Security will be released after total work is completed.
5. DEVIATIONS/ VARIATIONS IN QUANTITIES:
Extent and Pricing: The quantities given in the 'Schedule of Quantities' are provisional and
are meant to indicate the extent of the work and to provide a uniform basis for tendering and
any variation either by addition or omission shall not vitiate the contract.
5.1The Company through its Engineer-In-Charge or his representative shall, without radically
changing the original scope and nature of the contracted work, have power to make any
alterations in or additions to or substitution of the original and instructions that may appear to
be necessary or advisable during the progress of the work. The Contractor shall be bound to
carry out the works in accordance with the instructions given to him in writing by Engineer-
In-Charge or his representative on behalf of the Company.
Note: Change of site within the mines of same Area because of geological disturbances, non-
shifting of houses, non-availability of FC in time, some EC restrictions etc. shall not be
considered as radical change in the original scope and nature of the contracted work, for the
purpose of clause 5.1 of CMM and shall be approved by CFD of Subsidiary Company. Such
change of site shall not require consent of the Contractor. CFD of the Subsidiary Company
may approve change of site in other situations also, depending upon the prevailing local
conditions.
However, if change of site relates to mine outside the Area but in the same Coalfield due to
situations as enumerated above, may be decided by the CFD of the Subsidiary, with the
consent of the Contractor.
Such altered or additional work, which shall form part of the original contract, shall be
carried out by the Contractor on the same conditions in all respects on which they agree to do
the main works and at the same rate/rates as are specified in the contract.
In case of difficulty in handing over the site indicated in tender document or in continuing the
work as per the agreed time and progress chart in allocated site, the Company shall have the
right to allocate an alternative and/or supplementary site similar to the original site in terms
of geological formations and the same range of leads in the same mine to achieve the quantity
limited to mutually agreed time and progress chart/NIT. No sooner the adequate hindrance
free space at original site is available, the work should be restored in the original site. In such
cases no extension of contract with additional quantity shall be done.
5.2 If the additional or altered work includes any class of work for which no rate/rates is/are
specified in the contract, rates for such items shall be determined by the Engineer-In-Charge
as follows:
a. the rate shall be derived from the rate/rates for similar or near similar class of work as
is/are specified in the contract/tender, failing which
b. the rates shall be derived from the Company's prescribed Schedule of Rates based on
which the estimate for tendering has been prepared plus or minus the percentage by which the

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tendered amount for the whole work quoted by the Contractor is above or below the
estimated amount as per the tender documents, failing which
c. the rate shall be derived from Contractor's rate claimed for such class of work supported by
analysis of the rate/rates claimed by the Contractor. The rate to be determined by the
Engineer-In-Charge as may be considered reasonable taking into account percentage of profit
and overhead not exceeding ten percent or on the basis of market rates, if any, prevailing at
the time when work was done.
In the case of composite tenders, where two or more schedule of quantities for similar item
description may form part of the contract, the applicable rate shall be taken from the schedule
of quantities of that particular part in which the deviation is involved, failing that at the
lowest applicable rate for the similar item of work in the other schedule of quantities.
However, the Engineer-In-Charge shall be at liberty to cancel the instruction by notice in
writing and to arrange to carry out the work in such manner as he /she considers advisable
under the circumstances. The Contractor shall under no circumstances suspend the work on
the plea of non-settlement of rates.
5.3 Alterations in the quantities shall not be considered as a change in the conditions of the
contract nor invalidate any of the provision thereof provided that a Revised Work Order for
the item/items involved is issued. Such alterations with consent of the Contractor shall need
appropriate approval, as below:
a) Additional quantity upto 10% of original awarded value may be awarded in exceptional
circumstances with the approval of Tender Approving Authority.
b) However, in exceptional circumstances such as non-finalization of subsequent contract,
court case etc, additional quantity beyond 10% and upto 30% of original awarded value may
be awarded with the approval of Competent Authority.
However, TAA shall be in accordance with current prevalent DoP of CIL/Subsidiary.
5.4 The time for completion of the originally contracted work shall be extended by the
Company in the proportion that the additional work (in value) bears to the original contracted
work (in value) as may be assessed and certified by the Engineer-In-Charge.
The validity of the Bank Guarantee, if submitted by the Contractor, in lieu of Performance
Security / Security Deposit shall be extended in pursuant to Clause No.4.3 taking into
consideration the period of extension.
5.5 The Company through its Engineer-In-Charge or his representative, on behalf of the
Company, shall have power to omit any part of the work for any reason and the Contractor
shall be bound to carry out the work in accordance with the instruction given by the
Engineer-In-Charge. No claim for extra charges/damages shall be made by the Contractor on
these grounds.
5.6 In the event of any deviation being ordered which in the opinion of the Contractor
changes radically the original scope and nature of the contract, the Contractor shall under no
circumstances suspend the work, either original or altered or substituted, and the
dispute/disagreement as to the nature of deviation or the rate/rates to be paid thereof shall be
resolved separately with the Company.
5.7 The re-appropriation/re-allocation of the quantities.
a) Quantity upto 10% of original awarded value may be awarded in exceptional
circumstances with the approval of Tender Approving Authority.

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However, TAA shall be in accordance with current prevalent DoP of CIL/Subsidiary.”
b) However, in exceptional circumstances such as non-finalisation of subsequent contract,
court case etc, quantity beyond 10% and upto 30% of original awarded value may be done
with the approval as per DoP.
5.8 In all cases where the Service Provider has been levied a cumulative penalty of 5 percent
of the total contract value, extension beyond the initial Contract period shall not be
considered. However, this shall not be applicable for extension granted on account of
hindrances.
6. TIME FOR COMPLETION OF CONTRACT- EXTENSION THEREOF,
DEFAULTS & COMPENSATION FOR DELAY:
Immediately after the Bid of the contract is concluded, the Engineer-In-Charge and the
Contractor shall agree upon time and progress chart prepared on the basis of a transportation
schedule to be submitted by the Contractor showing the order in which the work is proposed
to be carried out within the time specified in the contract documents. For the purpose of this
time and progress chart, the work shall be deemed to have commenced on the expiry of 10
(ten) days from the issue of Letter of Acceptance (LOA)/Work Order or handing over the site
of work whichever is later.
However, the date of commencement may be decided with mutual consent with the
Contractor on any date after issuance of Letter of Acceptance/ Work Order or handing over
the site of work prior to the date as prescribed above.
However, payment for the work done would be made only after execution of the agreement.
6.1 If the Contractor, without reasonable cause or valid reason, commits default in
commencing the execution of the work within the aforesaid date, the Company shall, without
prejudice to any other right or remedy, be at liberty, by giving 15 days’ notice in writing to
the Contractor to commence the work, failing which to forfeit Bid Security / Performance
Security Deposit and Additional Performance Security Deposit, if any deposited by him.
Additionally, the Company shall debar such defaulting Contractor from participating in future
tenders in concerned Subsidiary/CIL HQ for a period of minimum one year from the date of
issue of such letter. In case of JV/CONSORTIUM/Partnership firm, the debarment shall also
be applicable to all individual partners of JV/CONSORTIUM/Partnership firm.
However, debarment shall be done as per Guidelines on Debarment of firms from Bidding.
6.2 In the event of the Contractor’s failure to comply with the required progress in terms of
the agreed time and progress chart, he shall without prejudice to any other right or remedy
available under the law to the Company on account of such breach, shall become liable to pay
for penalty as under:
If the average daily progress of work during the calendar months is less than the stipulated
rate indicated in the detailed tender notice/ agreed work schedule, penalty as detailed below
will be levied.
i) If the average daily progress of work executed during the calendar month is 80% and more
but less than 100% of the stipulated rate indicated in the detailed tender notice/ agreed work
schedule (quantity-wise), penalty equal to 10% of the contract value of the short fall quantity
in work shall be deducted at the end of the respective Financial Quarter if the shortfall
quantity either in full or part has not been made up within that Financial Quarter.

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ii) If the average daily progress of work executed during the calendar month is less than 80%
but more than or equal to 70% of the stipulated rate indicated in the detailed tender notice/
agreed work schedule (quantity-wise), penalty equal to 20% of the contract value of the short
fall quantity lying in the given range of work shall be deducted at the end of the respective
Financial Quarter if the shortfall quantity either in full or part has not been made up within
that Financial Quarter.
iii) If the average daily progress of work executed during the calendar month is less than 70%
of the stipulated rate indicated in the detailed tender notice/ agreed work schedule (quantity-
wise), penalty equal to 20% of contract value of the short fall quantity of that month beyond
30% of the stipulated rate indicated in the detailed tender notice/agreed work schedule
(quantity-wise) shall be deducted in the bill of that calendar month itself and shall not be
refunded.
iv)The aggregate of the penalties so levied shall not exceed 10% of the total Contract Value
for the entire contracted work.
The Contractor shall be allowed to make up the shortfall as per a (i) & (ii) above within the
respective Financial Quarter only.
The penalties so deducted shall not be refunded.
6.3 Deleted
6.4 Extension of date of completion - on happening of any events causing delay as stated here
under, the Contractor shall intimate Engineer-In-Charge in writing immediately:
a) abnormally bad weather
b) serious loss or damage by fire
c) civil commotion, strikes or lockouts affecting any of the trades employed on the work
d) delay on the part of the Contractors or tradesmen engaged by the Company not forming
part of the contract, holding up further progress of the work
e) any other causes which, at the sole discretion of the Company is beyond the control of the
Contractor.
"Hindrance Register" should be maintained for recording the hindrances.
The Contractor shall however use his best efforts to prevent or make good the delay by
putting his endeavors constantly as may be reasonably required of him to the satisfaction of
the Engineer-In-Charge.
Time extension on account of hindrance shall be granted by Area General Manager based on
the recommendation of the Engineer-in-Charge of the work during the course of execution of
work reserving the right to impose/waive the clause relating to compensation for delay. The
extension will have to be by party's agreement, expressed or implied.
Bank Guarantees, against security, shall be suitably extended, to take care of any extension
granted.
6.5 Deleted
6.6 When the period fixed for the completion of the contract is about to expire, the question
of extension of the contract may be considered at the instance of the Contractor or the
Company or both. The extension will have to be by party's agreement, expressed or implied.

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The extension of time other than on account of hindrance shall be granted with the approval
of Accepting Authority of the tender limited to DoP.
6.7 Force Majeure (FM) Clause
Conditions beyond control of either parties like war, hostility, acts of public enemy, civil
commotion, sabotage, serious loss or damage by fire, explosions, epidemics, strikes, lockouts
or acts of God come under the legal concept of Force Majeure (FM).
(a) The successful Bidder/ Contractor will advise, in the event of his having resort to this
Clause by a registered letter duly certified by the local chamber of commerce or statutory
authorities, the beginning and end of the cause of delay, within fifteen days of the occurrence
and cessation of such Force Majeure condition. In the event of delay lasting over one month,
if arising out of Force Majeure, the contract may be terminated at the discretion of the
Company.
(b) For delays arising out of Force Majeure, the Bidder/ Contractor will not claim extension
in completion date for a period exceeding the period of delay attributable to the causes of
Force Majeure and neither Company nor the Bidder shall be liable to pay extra costs (like
increase in rates, remobilization advance, idle charges for labour and machinery etc.)
provided it is mutually established that the Force Majeure conditions did actually exist.
6.8 Whenever time extension is given to the contractor for reasons for delay solely attributed
to the company, Price variation may have to be allowed depending on the conditions of the
contract. In order to determine the above, a hindrance register will be maintained which will
be jointly signed by both the parties at the time of periodical review meetings to be held at
least once in a month by the Engineer-in-Charge / Designated Officer-in-charge whose
decision in this cases will be final. The delays will be determined solely on the basis of this
register, and that any refusal on the part of the contractor to sign the register would mean that
the delay, if it occurs will be solely attributed to him.
Hindrance register is signed by both the parties. The contractor should also be given
permission to write his observations / disagreement in the register.
In case the contractor has a different opinion for hindrance and a dispute arises, then the
matter would be referred to the higher authority whose decision will be final and binding on
the contractor and the decision to be communicated within 15 days.
6.9 Without prejudice to any express provision in the Contract, the extension of time shall not
exceed the period of hindrance (the period for which the work has been hindered beyond
control of Contractor) at same terms and conditions.
6.10 Concurrent delays - when two or more events responsible for delay overlap each other.
The delays may be attributable to the Procuring Entity or the contractor or none, and fall in
above categories. The eligibility for extension of time (EOT) should be determined by
plotting each contributing concurrent delay on the critical path. The Procuring Entity should
see that the concurrent delays do not result in unnecessary extra extension of time.
7. QUALITY ASSURANCE:
The Contractor shall carry out and complete the work in every respect in accordance with the
contract and shall ensure that the work conforms strictly to the instructions of the Engineer-
In-Charge. The Engineer-In-Charge may issue from time to time further detail
instructions/directions in writing to the Contractor. All such instructions/directions shall be
consistent with the contract documents and should be reasonably inferable therefrom, along

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with clarifications/explanations thereof, if necessary. Extracted Coal shall be free from any
extraneous material like Shale, Rock etc.
8. MEASUREMENT AND PAYMENT:
Except where any general or detailed description of the work in quantities provides
otherwise, measurements of work done shall be taken in accordance with “CODE FOR
UNIFORM SYSTEM OF MAINTENANCE, CONTROL, VERTFICATION OF
COALSTOCK AND MEASUREMENT, VERIFICATION OF OVER BURDEN
REMOVAL IN ALLMINES OF COAL INDIA LIMITED” and the relevant standard method
of measurement as applicable to the schedule of quantities/schedule of work /specification to
the contract. In the case of items not covered by any of the aforesaid contract documents,
measurement shall be taken in accordance with the relevant standard method of measurement
issued by the Indian Standard Institution.
8.1All items of work carried out by the Contractor in accordance with the provisions of the
contract having a financial value shall be entered in the Measurement Book/Log Book, etc. as
prescribed by the Company so that a complete record is obtained of all work performed under
the contract and the value of the work carried out can be ascertained and determined
therefrom.
8.2 Measurements shall be taken jointly by the Engineer-In-Charge or his authorized
representative and by the Contractor or his authorized representative.
8.3 Before taking measurements of any work, the Engineer-In-Charge or the person deputed
by him for the purpose shall intimate the Contractor to attend or to send his representative to
attend the measurement. Every measurement thus taken shall be signed and dated by both the
parties on the site on completion of the measurement. If the Contractor objects to any of the
measurements, a note to that effect shall be made in the Measurement Book /Log Book and
signed and dated by both the parties.
8.4 In the event of failure on the part of Contractor to attend or to send his authorized
representative to attend the measurement after receiving the intimation, or to countersign or
to record objection within a week from the date of the measurement, the measurement taken
by the Engineer-In-Charge or by his authorized representative shall be taken to be the correct
measurement of the work done.
8.5 Payment on Account - The Contractor shall submit interim bill/bills for the work carried
out/materials provided in accordance with the contract. The Engineer-In-Charge shall then
arrange for verification of the bill/bills with reference to the measurements taken or to be
taken or any other records relevant for the purpose.
8.6 Payment on account shall be made on the Engineer-In-Charge certifying the sum to which
the Contractor is considered entitled by way of interim payment for the work executed as
covered by the bill/bills after deducting the amount already paid, the Security Deposit and
such other amounts as may be deductible or recoverable in terms of the contract.
8.7 Deleted
8.8 Deleted
8.9 Any certificate given by the Engineer-in-charge for the purpose of payment of interim
bill/bills shall not of itself be conclusive evidence that any work/materials to which it relates
is/are in accordance with the contract and may be modified or corrected by the Engineer-in-
charge by any subsequent certificate or by the final certificate.

Page 12 of 60
8.10 The Company reserves the right to recover/enforce recovery of any overpayments
detected after payment as a result of post-payment audit or technical examination or by any
other means, notwithstanding the fact that the amount of disputed claims, if any, of the
Contractor exceeds the amount of such overpayment and irrespective of the facts whether
such disputed claims of the Contractor are the subject matter of arbitration or not. The
amount of such overpayments may be recovered from the subsequent bills under the contract,
failing that from Contractor's claim under any other contract with the Company or from the
Contractor's Security Deposit or the Contractor shall pay the amount of overpayment on
demand.
8.11Amount payable/ repayable for any subsequent change in the Goods and Services Tax
(GST) will be made to/ from the Contractors after departmental verification of such changes
of tax law issued by Statutory authority.
8.12 A Standard Flow chart for payment is as below. Relevant provisions suitable for
Transportation Contract is to be applied under this Chapter 6.

Description Activities Timelines Responsibility Escalation

Matrix
Joint 1. Interim 03-05 days Unit / Mine Level-1: If
measurement monthly/fortnightly Survey activity not
by EIC or his measurement shall department of completed
authorised be done by concerned within TL: Area
representative Unit/Mine project in GM
and by the Surveyor along coordination Level-2: If
contractor or with representative with HOD of activity not
his authorised of Contractor as concerned completed
representative per the rules of the department of within 10 days
duly recorded company and duly respective area / of TL: D(T),
in MB/Log recorded in Subsidiary HQ Subsidiary/CIL
book. MB/Log book.
2. In addition to
monthly
measurement of
OB by Unit/Mine
Surveyor, quarterly
measurement shall
be carried out by
team constituted at
Area level.
3. Half yearly and
yearly
measurement to be
conducted as per
provision of
Yellow Book
(Revision-2020)
4. Submission of
bill by Contractor
as per accepted
measurement of

Page 13 of 60
 MB/Logbook. The
initial and final
joint survey
measurement of the
works, coal and
overburden shall be
carried out by Area
Authority in
association with
Head Quarter
Survey Team,
CMPDIL/ other
Subsidiary team
and representative
of Contractor.
Forwarding of Certified bills from Within 02 days Survey & Level-1: If
bills through concerned section from the date Finance activity not
dak to Finance duly verified in of Invoice/Bill. department of completed
department regards to concerned within TL: Area
(Paying 1) quality, quantity, project in GM
authority as per amount, penalty coordination Level-2: If
work order) for and deductions as with HOD of activity not
processing and per agreement / concerned completed
payment. work order etc department of within 10 days
2) All necessary respective of TL: D(T),
approvals, copy of project/Mine. Subsidiary/CIL
LOA, work order,
Agreements etc
have been enclosed
3) Preparing and
signing of
Measurement Book
by competent
authority have been
complied as per
rules.
4) Necessary
reconciliations
with the quantity of
coal despatched as
per weighment of
railway / truck
receipts.
5) All necessary
certificates as per
work order /
relevant rules are
enclosed.
6) Acceptance of
BG/Receive of

Page 14 of 60
 Security deposit (If
applicable)
7) Deduction of
retention money
from the bill.
8) other documents
as per order
Passing of bills Certified bills Within 03 Expenditure/ Level-1: If
by Expenditure received for working days Bill passing activity not
section passing for from receipt of Section of completed
payments to be bill in Finance Finance of within TL: Area
checked in regards department concerned GM / GM(F)
to: - Area/HQ in I/C
1) condition of coordination Level-2: If
work order, with AFM. activity not
Measurement Book completed
and necessary within 10 days
Certificates. of TL – D(F),
2) Security deposit/ Subsidiary/CIL
performance
guarantee has been
deposited as per
rules.
3) Retention
money (as
applicable) is
deducted.
4) Penalty clause
have been verified
and action taken
5) Tax compliances
and returns have
been complied.
6) Other necessary
compliances
Payment by Bills Received by Within 02 days Fund Section of Level-1: If
Fund/Cash DAK duly passed from the Finance of activity not
Section for payment to be receipt of bill concerned completed
checked in regards by Fund Area/HQ in within TL: Area
to: - Department coordination GM /GM(F)
1) Availability of with AFM of I/C.
Funds and action concerned Area. Level-2: If
taken. activity not
2) Payment in completed
contractor bank within 10 days
account through of TL – D(F),
RTGS/NEFT Subsidiary/CIL.
8.13 Incentives/ Bonus

Page 15 of 60
In the event of the Contractor exceeds the required progress in terms of the approved time
and progress chart, they shall be entitled for a bonus.
If the progress of work during the Financial year is more than the stipulated rate indicated in
the approved work schedule (without considering hindrances), the contractor shall be entitled
for bonus as under:
If the yearly progress of work executed during the Financial year is 110% or more of the
stipulated quantity (in case of composite contracts, the contractor shall achieve 110% or more
of the stipulated quantity of coal and OB separately) indicated in the approved work schedule
(quantity-wise)(without considering hindrances), the contractor shall be entitled to a bonus
equal to 1% (one percent) of the average monthly contract value (excluding GST) for every
month in which the contractor has achieved 110% or more of approved work schedule.
The average monthly contract value (excluding GST) for this clause = (awarded contract
value in Rs. (excluding GST) X 30 days)/ awarded contract period in days.
For coal transportation contracts, the approved work schedule shall mean the TPD indicated
in the NIT.
However, the payment of bonus shall be subject to the following conditions:
a) The yearly executed quantity considered for bonus calculation shall be finalised after
reconciliation with the results of third-party measurement or check measurement.
b) Total Bonus so calculated in a contract in its lifetime shall be a maximum of 5 (five)
percent of the total contract value.
c) No bonus shall be calculated in case the Contractor fails to achieve 110% or more of the
stipulated quantity (in case of composite contracts, the contractor shall achieve110% or more
of the stipulated quantity of coal and OB separately) indicated in the approved work schedule
(quantity-wise), during the month, irrespective of reasons.
d) Payment of Bonus is also subject to the condition that (i) no penalty has been imposed on
the contractor within the Financial year for any shortfall quantity or any other reason and (ii)
there are no dues payable by the Contractor to the Company or any Govt. agency (iii) no
court/arbitration/conciliation cases exist between the contractor and the Company.
Clause No: 8.13 shall be applicable for tenders whose approved Estimated Cost Value put to
tender is not less than Rs.100 crore (including GST).
9. TERMINATION, SUSPENSION, CANCELLATION & FORECLOSURE OF
CONTRACT:
The Company shall, in addition to other remedial steps to be taken as provided in the
Conditions of Contract, be entitled to cancel/terminate the contract in full or in part, if the
Contractor
a. makes default in proceeding with the works with due diligence and continues to do so even
after a notice in writing from the Engineer-In-Charge, then on the expiry of the period as
specified in the notice.
Or
b. fails to achieve a monthly agreed quantity of 70% (Seventy percent) for a period of 6(six)
consecutive month or for cumulative period of six months within any continuous period of
18(eighteen) months, save and except to the extent of non-availability caused by i) a Force
Majeure event or ii) an act of omission of Company, not occurring due to any default of the
Contractor.
Page 16 of 60
Note: - In such cases the Contractor may be debarred for minimum one year from
participating in future bidding allowing the present business to continue without going into
termination of the contract.

Or
c. commits default/breach in complying with any of the terms and conditions of the contract
and does not remedy it or fails to take effective steps for the remedy to the satisfaction of the
Engineer-In-Charge, then on the expiry of the period as may be specified by the Engineer-In-
Charge in a notice in writing.
Or
d. fails to complete the work or items of work with individual dates of completion, on or
before the date/dates of completion or as extended by the Company, then on the expiry of the
period as may be specified by the Engineer-In-Charge in a notice in writing.
Or
e. shall offer or give or agree to give any person in the service of the Company or to any other
person on his behalf any gift or consideration of any kind as an inducement or reward for
act/acts of favour in relation to the obtaining or execution of this or any other contract for the
Company.
Or
f. obtains a contract with the Company as a result of ring tendering or other non-bonafide
method of competitive Bidding.
Or
g. transfers, sublets, assigns the entire work or any portion thereof without the prior approval
in writing from the Engineer-In-Charge. The Engineer-In-Charge may give a written notice;
cancel/terminate the whole contract or portion of it in default.
(Note: Failure of existing contract in full shall be where shortfall is 50% or more in 6 (six)
consecutive months or in part where shortfall of Contractor is at 30% or more in 6 (six)
consecutive months.)
However, when Subsidiary decides to cancel the contract in parts as per (a) & (b) above, the
quantity considered for partial cancellation shall be dealt as per Clause 10.1 of Terms and
Conditions and the balance quantity shall be executed by the Contractor as per terms and
conditions for the remaining quantity both in terms of daily agreed progress of work as well
as total remaining quantity.
Further, when Subsidiary decides to cancel the contract in full as per (a) & (b) above, it shall
be dealt as per guidelines for Special Purpose Limited Tender (SPLT) till new tender is
awarded.
The approving authority shall be TAA or CMD, if originally awarded by CFDs/CMD or
Board.
9.1 The contract shall stand terminated under the following circumstances:
a. If the Contractor being an individual in the case of proprietary concern or in the case of a
partnership firm any of its partners is declared insolvent under the provisions of insolvency
act for the time being in force, or makes any conveyance or assignment of his effects or

Page 17 of 60
composition or arrangement for the benefit of his creditors amounting to proceedings for
liquidation or composition under any insolvency act.
b. In the case of the Contractor being a Company, its affairs are under liquidation either by a
resolution passed by the Company or by an order of Court, not being a voluntary liquidation
proceedings for the purpose of amalgamation or reorganization, or a receiver or manager is
appointed by the Court on the application by the debenture holders of the Company, if any.
c. If the Contractor shall suffer an execution being levied on his/their goods, estates and allow
it to be continued for a period of 21 days.
d. On the death of the Contractor being a proprietary concern or of any of the partners in the
case of a partnership concern and the Company is not satisfied that the legal representative of
the deceased proprietor or the other surviving partners of the partnership concern are capable
of carrying out and completing the contract. The decision of the Company in this respect shall
be final and binding which is to be intimated in writing to legal representative or to the
partnership concern.
9.2 On cancellation of the contract or on termination of the contract, the Engineer-In-Charge
shall have powers:
a. To take possession of the site and carry out balance work through any other agency.
b. To give the Contractor or his representative of the work 7 (seven) days’ notice in writing
for taking final measurement for the works executed till the date of cancellation or
termination of the contract. The Engineer-in-Charge shall fix the time for taking such final
measurement and intimate the Contractor in writing. The final measurement shall be carried
out at the said appointed time notwithstanding whether the Contractor is present or not. Any
claim as regards measurement which the Contractor is to make shall be made in writing
within 7 (seven) days of taking final measurement by Engineer-In-charge as aforesaid and if
no such claim is received, the Contractor shall be deemed to have waived all claims regarding
above measurements and any claim made thereafter shall not be entertained.
c. After giving notice to the Contractor to measure up the work of the Contractor and to take
such whole or the balance or part thereof, as shall be unexecuted out of his hands and to give
it to another Contractor or take up departmentally, to complete the work. The Contractor
whose contract is terminated shall not be allowed to participate in future bidding for period of
minimum one year.
In such an event, the Contractor shall be liable for loss/damage suffered by the employer
because of action under this Clause and to compensate for this loss or damage, the employer
shall be entitled to recover higher of the following:
i) Forfeiture of Security Deposit comprising of Performance Security and Retention Money
and Additional Performance Security, if any, at disposal of the employer.
Or
ii) 20% of value of incomplete work. The value of the incomplete work shall be calculated
for the items and quantities remaining incomplete (as per provision of agreement) at the
agreement rates including price variation as applicable on the date, when notice in writing for
termination of work was issued to the Contractor.
It is being clarified that the above liability is over and above the penalties payable by the
Contractor on account of shortfall in quantities as per provision of Clause 6.

Page 18 of 60
The amount to be recovered from the Contractor as determined above, shall, without
prejudice to any other right or remedy available to the employer as per law or as per
agreement, will be recovered from any money due to the Contractor on any account or under
any other contract and in the event of any shortfall, the Contractor shall be liable to pay the
same within 30 days. In case of failure to pay the same the amount shall be debt payable.
In the event of above course being adopted by the Engineer-In-Charge, the Contractor shall
have no claim to compensation for any loss sustained by him by reasons of his having
purchased materials, equipment or entered into agreement or made advances on any account
or with a view to the execution of work or performance of the contract. And in case action is
taken under any of provision aforesaid, the Contractor shall not be entitled to recover or to be
paid any sum for any work thereof or actually performed under this contract unless and until
the Engineer-In-Charge has certified in writing the performance of such work and value
payable in respect thereof and he shall only be entitled to be paid the value so certified.
The need for determination of the amount of recovery of any extra cost/expenditure or of any
loss/damage suffered by the Company shall not however arise in the case of termination of
the contract for death/demise of the Contractor as stated in 9.1(d).
However, debarment shall be done as per Guidelines on Debarment of firms from Bidding.
9.3 Suspension of work - The Company shall have power to suspend the progress of the work
any part thereof and the Engineer-In-Charge may direct the Contractor in writing to suspend
the work, for such period and in such manner as may be specified therein, on account of any
default on the part of the Contractor, or for proper execution of the work for reasons other
than any default on the part of the Contractor, or on ground of safety of the work or part
thereof. In the event of suspension for reason other than any default on the part of the
Contractor, extension of time shall be allowed by the Company equal to the period of such
suspension.
9.4 Foreclosure of contract in full or in part - If at any time after acceptance of the tender, the
Company may decide to abandon or reduce the scope of the work in following circumstances:
a) A drop-in requirement consequent upon change in geo-mining conditions not allowing
Company/ Management to proceed further being detrimental to the interest of Company.
b) Continuation of work may endanger safety and security of men and property of the
Company.
c) Causative events like land acquisition problems/problem of shifting of villagers etc.
d) In absence of Environmental &Forest Clearance of any part of the working site (EMP &
Forest clearance shall be the responsibility of the Company).
However, TAA shall be in accordance with current prevalent DoP of CIL/Subsidiary.
In this case the, Engineer-In-Charge, shall give notice in writing to that effect to the
Contractor. In the event of abandonment/reduction in the scope of work, the Company shall
be liable to pay the Contractor at the contract rates full amount for works executed and
measured at site upto the date of such abandonment/reduction in the work.
The Contractor shall, if required by the Engineer-In-Charge, furnish to him books of
accounts, papers, relevant documents as may be necessary to enable the Engineer-In-Charge
to assess the amount payable. The Contractor shall not have any claim for compensation
whatsoever either for abandonment or for reduction in the scope of work, other than those as
specified above.

Page 19 of 60
However, the penalty on account of shortfall quantity as per Clause 6.2 will be levied on the
Contractor.
10. ACTIONS AFTER PARTIAL CANCELLATION/TERMINATION OF
CONTRACT:
If the progress of the work or of any portion of the work is unsatisfactory as per Clause 9(a)
& 9(b) of Terms and Condition, the Engineer-In-Charge, after giving the Contractor 15 days’
notice in writing, without fully cancelling/terminating the contract, shall be entitled to employ
another Agency for executing the job or to carry out the work departmentally or contractually
through tendering / limited tendering process (SPLT- Special Purpose Limited Tender), either
wholly or partly.
In such an event, the Contractor shall be liable for loss/damage suffered by the employer
because of action under this Clause and to compensate for this loss or damage, the employer
shall be entitled to recover higher of the following:
i) Forfeiture of Security Deposit comprising of Performance Guarantee and Retention Money
and Additional Performance Security, if any, at disposal of the employer.
Or
ii) 20% of value of cancelled work. The value of the cancelled work shall be calculated for
the items and quantities cancelled (as per provision of Agreement) at the Agreement rates,
when notice in writing for termination of work was issued to the Contractor.
The certificate to be issued by the Engineer-In-Charge for the cost of the work
cancelled/terminated shall be final. However, when this Clause is invoked, penalty as per
Clause 6.2 of Terms and Conditions (i.e. shortfall in quantity) will not be applicable on
cancelled/terminated quantity.
The Contractor, from whom part work is being taken out, shall not be allowed to participate
in the tendering process if any.
In the event of above course being adopted by the Engineer-In-Charge, the Contractor shall
have no claim to compensation for any loss sustained by him by reasons of his having
purchased materials, equipment or entered into agreement or made advances on any account
or with a view to the execution of work or performance of the contract.
All the other terms and Conditions of Contract shall remain unaltered.
11. COMPLETION CERTIFICATE/ DEFECT LIABILITY CERTIFICATE:
On completion of the work and notifying the same by the Contractor to the Engineer-In-
Charge, Completion Certificate shall be issued by the Engineer-In-Charge only in the event
the work is completed satisfactorily in every respect. Payment of final bill shall be made on
completion of the contract and refund of Security Deposit shall, however, be made as per
relevant Clause of the contract.
12. RESPONSIBILITIES OF THE CONTRACTOR
i. The Company reserves the right to let other Contractors in connection with the Project and
the Contractor/Contractors shall co-operate in the works for the introduction and stores and
materials and execution of his/their works.
ii. The Contractor/Contractors shall employ only competent, skilful and orderly men to do the
work. The Engineer-In-Charge shall have the right to ask the Contractor/Contractors to
remove from the work site any men of the Contractor/Contractors who in his opinion is

Page 20 of 60
undesirable and the Contractor/Contractors will have to remove him within three hours of
such orders.
iii. Precautions shall be exercised at all times for the protection of persons (including
employees) and property. The safety required or recommendation by all applicable laws,
codes, statutes and regulations will be observed. In case of accidents, he/they shall be
responsible for compliance with all the requirements imposed by the Workmen's
Compensation Act or any other similar laws in force, and shall indemnify the Company
against any claim on this account.
The Contractor/Contractors shall at all times exercise reasonable precautions for the safety of
employees in the performance of his/their contract and shall comply with all applicable
provisions of the safety laws drawn up by the State or Central Government or Municipalities
and other authorities in India. The Contractor/Contractors shall comply with the provision of
the safety hand book as approved and amended from time to time by the Government of
India.
iv. The Contractor/Contractors shall familiarize themselves with and be governed by all laws
and rules of India and Local statutes and orders and regulations applicable to his/their work.
v. Building for the sanitary necessities of all persons employed on the work shall be
constructed and maintained in the number, manner and place approved or ordered by the
Engineer-In-Charge. The Contractor shall vigorously prohibit committing of nuisance at any
other place. Cost of all works under these items shall be covered by the
Contractor's/Contractors' quoted rates.
vi. The Contractor/Contractors shall furnish to the Engineer-In-Charge or his authorized
representative with work reports from time to time regarding the Contractor/Contractors
organization and the progress made by him/them in the execution of the work as per the
contract agreement.
vii. All duties, taxes (excluding Goods and Services Tax (GST) and GST Compensation Cess
(if applicable) only) and other levies payable by the Bidder/Contractor under the Contract, or
for any other cause as applicable on the last date of submission of Bid, shall be included in
the rates, prices and the total Bid Price submitted by the Bidder. Applicable GST, either
payable by Bidder or by Company under reverse change mechanism.
All investments, operating expenses, incidentals, overheads etc. as may be attendant upon
execution and completion of works shall also be included in the rates, prices and total bid
price submitted by the Bidder.
However, such duties, taxes, levies etc. which is notified after the last date of submission of
Bid and/or any increase over the rate existing on the last date of submission of Bid shall be
reimbursed by the Company on production of documentary evidence in support of payment
actually made to the concerned authorities.
Similarly, if there is any decrease in such duties, taxes and levies the same shall become
recoverable from the Contractor. The details of such duties, taxes and other levies along with
rates shall be declared by the Bidder.
The item wise rate quoted by Bidder shall be inclusive of all taxes, duties & levies but
excluding GST & GST Compensation Cess if applicable. The payment of GST and GST
Compensation Cess by service availer (i.e. CIL/Subsidiary) to Bidder/Contractor (if GST
payable by Bidder/Contractor) would be made only on the latter submitting a Bill/Invoice in
accordance with the provision of relevant GST Act and the rules made thereunder and after

Page 21 of 60
online filing of valid return on GST portal. Payment of GST & GST Compensation Cess is
responsibility of Bidder/Contractor.
However, in case Contractor is GST unregistered Bidder/dealer or GST registered under
composition scheme in compliance with GST rules, the Bidder/dealer shall not charge any
GST and/or GST Compensation Cess on Bill/Invoice. In case of unregistered dealer/Bidder,
GST, if applicable will be deposited by CIL/Subsidiary directly to concerned authorities in
terms with GST provisions.
Input tax credit is to be availed by CIL/Subsidiary as per rule.
If CIL/Subsidiary fails to claim Input Tax Credit (ITC)on eligible Inputs, input services and
Capital Goods or the ITC claimed is disallowed due to failure on the part of supplier/vendor
of goods and services in incorporating the tax invoice issued to CIL/Subsidiary in its relevant
returns under GST, payment of CGST & SGST or IGST, GST (Compensation to State) Cess
shown in tax invoice to the tax authorities, issue of proper tax invoice or any other reason
whatsoever, the applicable taxes &cess paid based on such Tax invoice shall be recovered
from the current bills or any other dues of the supplier/vendor along with interest, if any.
Note: During the execution of the contract if the GST status of the Bidder changes, then the
payment of GST, if any, to the Contractor will be made as per the GST status declared by the
Bidder during tender stage based on which cost to Company has been ascertained or at
actuals, whichever is lower.
viii. The Company reserves the right to deduct/ withhold any amount towards taxes, levies,
etc. and to deal with such amount in terms of the provisions of the Statute or in terms of the
direction of any statutory authority and the Company shall only provide with certificate
towards such deduction and shall not be responsible for any reason whatsoever.
ix. The Contractor/Contractors shall make his/their own arrangement for all equipment,
dumpers, materials, consumables (excluding explosives to be issued free of cost), tools, staff
and labour required for the contract, which shall include cost of lead, lift, loading, unloading,
railway freight, recruiting expenses and any other charges for the completion of the work to
the entire satisfaction of the Company.
The Contractor shall at his own cost arrange maintenance/repair of all equipment
required/deployed for the work. The Company shall have no liability whatsoever on this
account.
In emergent situation, to avoid disruption of work, and provided the Contractor makes an
application in this regard, POL, if available with the Company, may at the sole discretion of
the Company be issued to him with the approval of Area General Manager, but value of the
same as per the prevailing rate shall be charged from him or recovered from his bills.
x. No sub-letting of the work as a whole by the Contractor is permissible. Prior permission is
required to be taken from the Principal Employer for engagement of Sub-Contractors in
hiring equipment contract for part work / piece rated work.
The works contract may provide for the contractor to get specified works executed from
subcontractors included in the pre-qualification application or later agreed to by the Procuring
Entity, with a caveat that the responsibility for all sub-contact work rests with the prime
contractor. Sub-contracting may be for specialized items of work. Procurement of material,
hiring of equipment or engagement of labour will not mean sub-contracting. The total value
of subcontracted work should not exceed the percentage of the contract price specified in the
contract (say 25%). Sub-contracting by the contractor without the approval of the Procuring
Entity shall be a breach of contract, unless explicitly permitted in the contract.

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xi. Provision related to Employment of Labour, payment of wages and Provident Fund
deduction:
The execution of work shall be done by deploying machines / equipment through only regular
employees of the Contractor. The Contractor shall also comply with statutory requirements
under CL(R&A) Act and also obtain labour license.
The Contractor shall not engage any person of less than 18-year age or females during night
hours as required by relevant law.
The Contractor/Contractors shall not pay less than the wages fixed (notified and prevalent
during submission of the bid for mining activities as per policy decision of the Company/CIL
valid from time to time) in respect of his employees of different categories.
Note:
However, if the basic rate of wages of labour as fixed by CIL is revised during the contract
period then the incremental difference shall be reimbursed on actual basis through a suitable
mechanism as decided by CIL/Subsidiary.
The payment of wages to the workers should be made through Bank.
The Contractor/ Contractors shall make necessary payment of the Provident Fund for the
workmen employed by him for the work as per the laws prevailing under provisions of
CMPF and Miscellaneous Provisions Act 1948 or Employees Provident Fund and
Miscellaneous Provisions Act 1952 as the case may be. The Contractor shall regularly deposit
the contribution in accordance with such scheme. The Company shall have no liability
whatsoever in this regard.
The Contractor shall arrange treatment facilities to Contractor’s workers. However, treatment
facilities, as available at Company’s hospital and dispensary shall be provided to Contractors’
workers, in case Contractor wants to avail it. The treatment facility at Company’s Hospitals /
Dispensary shall be free of cost, but to the extent of available medicines, pathological
examination and other surgical treatment. Such facilities shall not be applicable to worker’s
spouse or dependent.
The Contractor should issue Identity Card to the workmen deployed by them with photograph
duly attested by him which the employee shall always carry with him while on work and
produce for Inspection whenever required.
The Contractor shall familiarize himself and fully comply with the provisions of all the
Acts/Rules/Regulations/Bye-laws and orders of the Local authority / Municipality /State
Govt./ Central Govt. applicable to the worker. Mines Act, Payment of Wages Act, Motor
Vehicle Act, Workermen’s Compensation Act, Labour Laws, Insurance etc. and shall be fully
responsible and liable for the due observance of the same. The Company shall have no
responsibility / liability whatsoever on these accounts. The Contractor shall fully indemnify
the Company against any claim/dispute/reference Award, etc. arising out of the same.
The Contractor shall make timely payment of all salary /wages/ dues to his employees and
shall also provide all benefits to his employees as per various Acts/ Rules, Regulation, Orders
applicable to the work e.g bonus under Coal Mines Bonus Scheme and Payment of Bonus
Act, Sunday Wages, Overtime, Holiday Wages, Leave Wages, Sick Leave etc.
The Contractor shall prepare the wages sheet for his employees in duplicate, a copy of which
shall be regularly submitted to the Engineer-in-charge of the project.

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The responsibility of the Contractor in respect of all payments to his employees will be
complete and absolute. The Company shall have no liability whatsoever in this regard and
shall be fully indemnified by the Contractor against any claim arising out of any non-payment
/ short payment/dispute/ award.
In case any accident occurs or any injury is caused to any employee of the Company by the
vehicles/equipment of the Contractors or by any act of omission/ commission on the part of
the Contractor's representative/ employees, the compensation for the same, as provided in law
or as assessed by the Company shall be recovered from the Contractor along with the costs
and expenses incurred by the Company on the same.
xii. The Contractor will have to make necessary security arrangement to prevent theft of coal
from the project premises, during transportation and also at coal dumps.
xiii. All accounts shall be maintained in English and the Company shall have the right of
access and inspection of all such books of accounts etc. relating to payment of labourer
considered necessary and the Company may arrange for witnessing the payment to the
labourer by its representatives.
xiv. Insurance - The Contractor shall take full responsibility to take all precautions to prevent
loss or damage to the works or part thereof for any reasons whatsoever (except for reasons
which are beyond control of the Contractor or act of God, e.g. flood, riots, war, earthquake,
etc.) and shall at his own cost repair and make good the loss/damage to the work so that on
completion, the work shall be in good order and condition and in conformity with the
requirements of the contract and instructions of the Engineer-In-Charge, if any:
a. The Contractor shall at all times during the pendency of the Contract indemnify the
Company against all claims, damages or compensation under the provisions of the
Workmen's Compensation Act and shall take insurance policy covering all risk, claims,
damages or compensation payable under the Workmen's Compensation Act or under any
other law relating thereto.
b. The Contractor shall pay directly the ex-gratia amount of [Rs 15 lakhs* or such other
amount as decided by the Company from time to time] to the same dependent as per the
terms of the Contract or through Insurance Company by availing Group Personal Accident
Insurance Policy for all its worker before commencement of the Contract, which shall be
renewed periodically to cover the entire duration of the Contract. No reimbursement shall be
made on this account by CIL/ Subsidiaries.
In order to comply with the above provisions, Contractor shall immediately on receipt of
letter of acceptance / work order shall obtain group personal accident insurance in respect of
the workmen engaged in mining activities to assure such payment of Rs 15 lakhs in case of
death in mine accident within 30 days. A proof to such effect shall be produced to the
satisfaction of the management before commencement of the work. However, the
responsibility of payment of special relief / ex-gratia amount shall be exclusively with the
Contractor.
If the Contractor fails to disburse the special Relief / Ex-gratia within the due date, the
Subsidiary concerned may make the payment to the eligible dependent as mentioned herein
above. However, such amount shall be recovered from the Contractor from his dues either in
the same and / or other subsidiaries /CIL.
c. The Contractor shall ensure that the insurance policy/policies are kept alive till full expiry
of the contract by timely payment of premiums and shall not be cancelled without the
approval of the Company and a provision is made to this effect in all the policies, and similar

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insurance policies are also taken by his sub-Contractors if any. The cost of premiums shall be
borne by the Contractor and it shall be deemed to have been included in the quoted rate.
d. In the event of Contractor's failure to effect or to keep in force the insurance referred to
above or any other insurance which the Contractor is required to effect under the terms of the
contract, the Company may effect and keep in force any such insurance and pay such
premium/premiums as may be necessary for that purpose from time to time and recover the
amount thus paid from any moneys due by the Contractor.
The Contractor shall whenever required produce before Engineer-In-Charge the policy or
policies of insurance and receipt of payment of the current premium.
xiv) ACCOMMODATION, SITE OFFICE, ELECTRICITY, WATER ETC.
a. The successful Bidder shall arrange accommodation, security etc. of its own for its
workmen. The employer shall not provide any land for setting up of labour camp and the
Contractor shall make his own arrangements. However, Company may provide
accommodation, if available, on chargeable basis on request made in writing by the
Contractor.
b. Subject to availability, the employer may allot at his own discretion and convenience, land
for the construction of Contractor’s site office, godowns, workshop and assembly yard near
the site. Allotment of such land shall not confer any tenancy rights to the Contractor. The
Contractor shall construct and maintain the same at his cost. All these temporary works shall
be well ventilated, lighted and provided with water, electricity and sanitary arrangement with
the approval of Engineer-In-Charge.
Providing Land for establishing Diesel Dispensing Unit(s) alongwith workshop may be
agreed on the request of the Contractor depending on the merit of the case and subject to
availability of land.
The Contractor shall obtain all statutory approvals/license and ensure compliance of all
applicable provisions for establishing of Diesel Dispensing Unit(s).
Diesel Dispensing Units will be used by the Contractor only for their own use in the contracts
awarded by the Company.
The Contractor shall remove immediately on completion of the work such buildings and
make good, to the satisfaction of EIC, all the damages sustained.
The Contractor shall not use the land for any purpose other than that for or in connection with
the contract.
In case Contractor requires any land additional to what is made available to him, the
Contractor shall make arrangement for the same at his own cost.
c. It will be the responsibility of Contractor, to whom the work would be allotted, for making
other arrangements at their own cost.
d. Electric power, if available, may be made available for the work by the employer at one
point within the site or near the site on conditions as specified:
The Contractor shall arrange at his own cost necessary cabling/wiring, switch board, switch
gear etc and shall be responsible for the safe maintenance.
Distribution arrangement shall be done by the Contractor at his cost as per approved layout.
Distribution arrangement shall be shifted and rerouted at the Contractor’s cost during
execution of work, if same is required for continuation of work or for any unforeseen reason.

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The Contractor shall install metering devices for recording of energy consumption. Tariff will
be deducted as per Company rules. No extra payment will be made and no extension of time
period will be allowed on account of power failure or delay in providing of power due to
nonavailability of such facility near the site. No idle wages will also be allowed on this
ground.
The Contractor shall remove immediately on completion of the work such distribution system
and all installations and make good, to the satisfaction EIC, all the damages sustained.
The Contractor shall employ certified and licensed electrician for carrying out the work and
its maintenance.
Note: -
 The Contractor shall submit to the Engineer I/C within thirty (30) days from the
date of acceptance of the award letter, his electrical power requirements. If any, to
allow the planning of the temporary electrical distribution by the Engineer I/C.
 The contractor shall be provided with supply of electricity for the purposes of the
contract, only at one point in the project site. In extreme emergency, if more supply
points are required due to non-feasibility of power supply from one point at another
work place, the requirement to be evaluated by Engineer I/C for the work &
PE(E&M) of the mine and approval of General Manager of the Area in writing to
be taken, specifying the reason for providing more than 01 (One) supply point.
 The contractor shall make his own further distribution arrangement. All temporary
wiring must comply with local regulations and will be subject to engineer’s
inspection and approval before connection to supply.
 Power supply for labour colonies (if any) shall also be provided at one point.
 The contractor shall be charged for the power supplied at work site and labour
colonies as per the rate of the respective Supply point of Distribution agency from
where power is being received by the contractor.
 Engineer I/C of the work and PE(E&M) of the project is responsible for proper &
timely meter reading, monthly bill raising against energy consumed and deduction
from the bills of contractor on monthly basis.
 The electricity rate may be calculated in the following way:

Total
Total KVAH
Total Monthly Electricity
consumed by
Bill Amount as Total KVAH charges of the
Unit Rate (C) the contractor
raised by consumed by Contractor for
= (A) / (B) as per the
Distribution the Area (B) the month (E)
energy meter
Agency (A) = 1.05* (C) *
reading (D)
(D)

 The total electricity charges of the contractor for the month also includes 5%
internal distribution loss charges / administrative charges.
 The derived rate will cover all the charges including electricity duty. Also, GST is
to be charged at the applicable rate.
 At the point of metering, the contractor has to bear the cost for installation of

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 energy meter, AB switches, Changeover Switches etc. as and when required to
maintain electrical safety.
 It is the responsibility of contractor to ensure maintenance of all the electrical
equipment, as mentioned above. Breakdown of any equipment (as stated above)
must be repaired/rectified/replaced by the contractor immediately, but not later than
30 days. If not repaired within the stipulated period. Engineer-In-Charge & PE
(E&M) of the project will ensure that the repairing/ rectification/ replacement is
done through them and the resultant cost is deducted from the bill of the contractor.
e. The Contractor shall make his own arrangement for water required for the work. Mine
water, if available, may be utilized for this purpose and shall be provided free of cost.
Arrangement of its pumping and distribution for use in his work shall be responsibility of
Contractor. Drinking water, if available, will be provided free of cost by Company at one
point. Distribution to required places will be the responsibility of Contractor. The employer
doesn’t guarantee uninterrupted supply. It will incumbent on the Contractor to make
alternative arrangement for drinking water at his own cost.
13. Settlement of Disputes with the Contractor
It is incumbent upon the contractor to avoid litigation and disputes during the course of
execution. However, if such disputes take place between the contractor and the department,
effort shall be made first to settle the disputes at the company level.
The contractor should make request in writing to the Engineer-in-charge for settlement of
such disputes/ claims within 30 (thirty) days of arising of the cause of dispute/ claim failing
which no disputes/ claims of the contractor shall be entertained by the company.
Effort shall be made to resolve the dispute in two stages:
In first stage dispute shall be referred to Area GM. If difference still persist the dispute shall
be referred to a committee constituted by the owner. The committee shall have one member
of the rank of Director of the company who shall be chairman of the committee.
If differences still persist, then matter shall be resolved through conciliation.
Conciliation:
The party initiating conciliation shall send a written invitation to the other party to conciliate
and proceedings shall commence when the other party accepts the initiations to conciliation.
The parties may agree on the name of a sole conciliator or each party may appoint one
conciliator. The conciliation shall assist the parties to reach an amicable settlement of their
dispute. When the parties sign the settlement agreement, it shall be final and binding on the
parties. The conciliator shall authenticate the settlement agreement and furnish a copy thereof
to each party.
If differences still persist, the settlement of the dispute shall be resolved in the following
manner:
Disputes or differences relating to the interpretation and application of the provisions of
commercial contract(s) between Central Public Sector Enterprise (CPSEs) / Port Trusts inter
se and also between CPSEs and Government Departments/ Organizations (excluding disputes
relating to Railways, Income Tax, Customs & Excise Department), shall be taken up by
either party for its resolution through Administrative Mechanism for Resolution of CPSEs
Disputes (AMRCD) as mentioned in DPE OM No. 05/003/2019-FTS-10937 dated 14th
December 2022 and the decision of AMRCD on the said dispute will be binding on both the
parties.

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In case of parties other than above Agencies, the redressal of the dispute may be sought
through Arbitration (THE ARBITRATION AND CONCILIATION ACT, 1996 as amended
by AMENDMENT ACT of 2015).
14. Settlement of Disputes through Arbitration
(i) Normally, there should not be any scope of dispute between the employer (department)
and the contractor after entering into a mutually agreed valid contract. However, due to
various unforeseen reasons, disputes may arise during the progress of the contract between
the employer (department) and the
contractor.
Therefore, the conditions governing the contract shall contain suitable provision for
settlement of such disputes / differences binding on both the parties.
(ii) Mode of settlement of such disputes/differences shall be through Arbitration. However,
when a dispute/difference arises, then, depending on the position of the case, either the
employer (department) or the contractor shall give notice to the other party of its intention to
commence arbitration. The applicable arbitration procedure will be as per the Arbitration and
Conciliation Act, 1996 as amended by Amendment Act of 2015.
(iii) Venue of Arbitration: The venue of arbitration shall be the place from where the contract
has been issued.
(iv) Applicable Law: The contracts shall be interpreted in accordance with the laws of the
Union of India.
(v) Legal Advice:
While processing a case for arbitration, the purchase organization is to take legal advice, at
appropriate stages from competent authorities viz their Legal Department.
(vi) Following clause shall be included in the General Conditions of the Contract (GCC):
Sole Arbitration Clause:
In the event of any question, dispute or difference arising under these terms & conditions or
any condition contained in this contract or interpretation of the terms of, or in connection
with this Contract (except as to any matter the decision of which is specially provided for by
these conditions), the same shall be referred to the sole arbitration of a person, appointed to
be the arbitrator by the Chairman, CIL/ CMD of Subsidiary Company (as the case may be).
The award of the arbitrator shall be final and binding on the parties of this Contract.
(a) In the event of the Arbitrator dying, neglecting or refusing to act or resigning or being
unable to act for any reason, or his/her award being set aside by the court for any reason, it
shall be lawful for the Chairman, CIL / CMD of Subsidiary Company (as the case may be) to
appoint another arbitrator in place of the outgoing arbitrator in the manner aforesaid.
(b) It is further a term of this contract that no person other than the person appointed by the
Chairman, CIL / CMD of Subsidiary Company (as the case may be) as aforesaid should act
as arbitrator and that, if for any reason that is not possible, the matter is not to be referred to
Arbitration at all.
Subject as aforesaid, Arbitration and Conciliation Act, 1996 as amended by Amendment Act
of 2015, and the rules thereunder and any statutory modification thereof for the time being in
force shall be deemed to apply to the Arbitration proceedings under this clause.

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The venue of arbitration shall be the place from which the contract is issued or such other
place as the Chairman, CIL / CMD of Subsidiary Company (as the case may be) at his
discretion may determine.
(vii) Contracts with Partnership firm/ Joint Venture/Consortium:
A partner is the implied authority to bind the firm in a contract coming in the purview of the
usual business of the firm. The implied authority of a partner, however, does not extend to
enter into arbitration agreement on behalf of the firm. Therefore, while entering into a
contract with partnership firm /Joint Venture/Consortium care should be taken to obtain
consent of all the partners to the arbitration agreement.
A suitable clause for obtaining consent of all the partners to the arbitration agreement shall be
included in the General Conditions of the Contract (GCC).
viii) In cases where CIL/ Subsidiary has challenged an arbitral award and as a result, the
amount of the arbitral award has not been paid, 75% of the arbitral award (which may include
interest up to date of the award) shall be paid by CIL/ Subsidiary to the contractor/
concessionaire against a Bank Guarantee (BG). The BG shall only be for the said 75% of the
arbitral award as above and not for the interest which may become payable to CIL/
Subsidiary should the subsequent court order require refund of the said amount.
The payment may be made into a designated Escrow Account with the stipulation that the
proceeds will be used first, for payment of lenders' dues, second, for completion of the
project and then for completion of other projects of CIL/ Subsidiary as mutually agreed/
decided. Any balance remaining in the escrow account subsequent to settlement of lenders'
dues and completion of projects of CIL/ Subsidiary may be allowed to be used by the
contractor/ concessionaire with the prior approval of the lead banker and CIL/ Subsidiary. If
otherwise eligible and subject to contractual provisions, retention money and other amounts
withheld may also be released against BG.
The only circumstances in which such payment need not be made is where the contractor
declines, or is unable, to provide the requisite bank guarantee and/or fails to open a escrow
account as required. Persons responsible for not adhering to are liable to be held personally
accountable for the additional interest arising, in the event of the final court order going
against the procuring entity.
ix) Arbitration /court awards should be critically reviewed. In cases where there is a decision
against CIL/Subsidiary the decision to appeal should not be taken in a routine manner, but
only when the case genuinely merits going for the appeal and there are high chances of
winning in the court/ higher court. There is a perception that such appeals etc. are sometimes
resorted to postpone the problem and defer personal accountability. Casual appealing in
arbitration / court cases has resulted in payment of heavy damages / compensation /
additional interest cost, thereby causing more harm to the exchequer, in addition to tarnishing
the image of the Government.
(x) Legal department of CIL/Subsidiary should monitor the success rate of appealing against
arbitration awards. There should be a clear delegation to empower officials to accept
arbitration / court orders. A special board / committee may be set up by legal department of
CIL/ Subsidiary to review the case before an appeal is filed against an order. Arbitration
/court awards should not be routinely appealed without due application of mind on all facts
and circumstances including realistic probability of success. The board / committee or other
authority deciding on the matter shall clarify that it has considered both legal merits and the
practical chances of success and after considering the cost of, and rising through, litigation /
appeal / further litigation as the case may be, it is satisfied that such litigation / appeal /further

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litigation cost is likely to be financially beneficial compared to accepting the arbitration /
court award.
15. E-WAY BILL:
The e-way bill required in connection with supply of goods or services, if any, shall be
arranged by the supplier/vendor. However, the e-way bill will be arranged by CIL/Subsidiary
if the supplier/vendor is unregistered one or if provisions of the relevant Act and the rules
made there under specifically states that the e-way bill is required to be issued by recipient of
goods.
16. In the event of recovery of any claim towards LD Charges, penalty, fee, fine or any other
charges (Except EMD) from the supplier/vendor, the same will be recovered along with GST
(if applicable) and the amount shall be adjusted with the payment to be made to the
supplier/vendor against their bill/invoice or any other dues.
17. CLOSURE OF CONTRACT:
The closure of contract shall be done within a period of 150 days after completion of the
work.
18. GRIEVANCE REDRESSAL:
In case of any grievance on shortfall penalty, the Contractor may appeal to the Director
(Technical) of the Subsidiary Company. Director (Technical) and Director (Finance) shall
jointly dispose off the appeal within 15 days by passing suitable order based on the merit of
the case. No further committee shall be constituted for redressal of such grievance.

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2. SPECIAL TERMS & CONDITIONS FOR HIRING CONTRACTS EXCAVATION
AND REMOVAL OF OVERBURDEN
1.00 The Contractor, before starting the work, shall furnish to the General Manager/ Project
Officer /Engineer-In-Charge the list of equipment e.g. Excavator / Pay loaders / drills /
surface miner/ tippers/ dumpers / light motor vehicles etc. As prescribed in the NIT proposed
to be deployed for the work, with the related papers of registration, fitness certificate,
permits, licenses, Insurance, driving licenses etc. for inspection. No equipment shall be
deployed for the work without the approval of the Project Officer/ General Manager/
Engineer-In-Charge.
2.00 The equipment/dumpers deployed in any other project of the Company or any project of
any Subsidiary of Coal India Limited, shall not be diverted for the work without the approval
of the Company. Similarly, the equipment / dumpers deployed for the work shall not be
diverted to any other project without the approval of the General Manager / Engineer-In-
Charge.
3.01 The Contractor shall deploy adequate number of matching equipment at least as per NIT
for the satisfactory execution of the work.
3.02 Only tipping trucks/dumpers with mechanical unloading arrangements shall be deployed
by the Contractor and in no case "Dala" trucks shall be deployed or permitted to be deployed
for the work.
3.03 Only equipment as elaborated above, in good and safe condition having valid fitness
certificate permits/ licenses etc. (wherever applicable) and in respect of which the required
taxes/ fees have been deposited and which are properly covered by insurance, shall be
deployed for the work.
The Company shall have the right to inspect or arrange inspection of the vehicles/ equipment
deployed by the Contractor for the work at any time and declare any vehicle/ equipment
unsafe and ask for its immediate withdrawal from the site/ operation. The Contractor shall
ensure prompt/ immediate compliance of the same.
3.04 The Contractor shall at his own cost, arrange for regular checking/ maintenance/ repair
of the tipping trucks/ equipment and keep them in good and safe conditions at all times.
Proper records of such checking/ maintenance/ repair shall be maintained in a Log Book kept
on the equipment /vehicle for the purpose, which shall be readily available for inspection
whenever required.
3.05 Only experienced, skilled and disciplined operators / drivers of sound health, good
behavior and antecedents having valid and requisite driving/statutory license as applicable
shall be deployed by the Contractor for operating the equipment/ driving dumpers deployed
for the work.
In no case any unauthorized driver of the tipping trucks or operator of pay loaders/ equipment
shall be permitted by the Contractor.
The Contractor shall post adequate number of competent, experienced, skilled and disciplined
persons having good antecedents for satisfactory execution of the work. A list of all such
persons shall be kept in the office of the Contractor and a copy of the same shall be furnished
to the General Manager/Project Officer/Engineer-In-charge as and when required. All these
persons shall be regular employees and under direct administrative control of the Contractor
and the management shall have no responsibility/ liability whatsoever in this regard.

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3.06 The tare-weight, gross weight, maximum carrying capacity of the tipping truck/dumper
and the dimensions of the body of the truck/dumper shall be clearly indicated on the body of
each dumper deployed for the work and maintained in good legible condition, at all times.
3.07 No addition or alteration to the size of the body or any such tipping truck/dumper shall
be carried out, without prior approval of the Project Officer/ General Manager/Engineer-In-
charge.
The truck/dumper shall be loaded only up to the maximum carrying capacity and shall not be
overloaded under any circumstances.
4.00 No manual workers shall be engaged by the Contractor for loading/ unloading of the
truck/dumper, under any circumstances whatsoever.
5.00 The Contractor shall bring/ take back and arrange for the transportation of the
dumper/truck/ equipment/ men and materials required for the work at his own cost.
6.00 Contractor's dumper/tipping truck should ply only on specified routes/ roads. In case,
plying of the dumper/tipping truck on any other route/ road become necessary, due to any
reason, prior approval for the same shall be taken by the Contractor from the Project Officer/
General Manager/Engineer-In-charge. In case of violation of this provision penalty may be
imposed on the Contractor and/ or the contract terminated.
7.00 The work shall be executed round the clock or during specified period on all the days of
week as directed by the Project Officer/ General Manager/Engineer-In-charge and the
Contractor shall be obliged to comply with the same.
8.00 The Contractor shall not have any claim whatsoever for the idleness of his equipment /
dumpers due to non-availability of working site or any dislocation enroute and / or for any
other reason.
9.00 The Contractor shall maintain proper records in English/ Hindi of the trucks/ equipment/
persons, etc. deployed for the work, work done, daily attendance of the employees, payment
to the employees etc. and the Company shall have the right of access to and inspection of
these records or to call for any or all these records or ask the Contractor to submit such
reports as it considers necessary and the Contractor shall be bound to comply with such
instructions.
10.00 The Company shall have no responsibility/ liability whatsoever for any accident/
damage to the Contractor's vehicle/ equipment in transit or while engaged in the work.
11.00 If the Company suffers any loss on account of suspension of production or idleness of
its equipment/ employees or on any other account or damage to its property, due to any
failure on the part of the Contractor or due to any act of omissions or commission on the part
of his representative/ employees or from the trucks/ equipment of the Contractor, the value of
the same as assessed by the Company, shall be recovered from the Contractor's bill/ security
deposit. The decision of the Company in this regard shall be final and binding on the
Contractor.
12.00 The monthly rate of removal of OB shall be as per removal schedule of the agreement.
However, the Engineer-In-Charge (GM/Project officer) may call upon the Contractor, for a
limited period, to increase monthly rate of removal up to +20%. The Contractor shall make
necessary arrangement for the increased rate of removal and no claim shall lie against the
Company on account of such increase ordered.

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In case of exigencies, the Engineer-In-Charge may call upon the Contractor, for a limited
period, to increase monthly removal of OB to a further higher range (mutually agreed), and
no claim whatsoever shall lie against Company on account of such variation ordered.
13.00 In case a Contractor fails to deploy adequate number of equipment/dumpers, the
Company may, without any reference to the Contractor, deploy its own equipment/dumpers
and / or make alternative arrangements. The extra expenditure incurred by the Company for
such use of Company’s equipment or for making alternative arrangements shall be recovered
from the Contractor.
14.00 The Contractor shall provide foot-wears, DGMS approved helmets, dust mask
fluorescent jacket, safety appliances and other protective equipment to his employees as
provided in the law, at his own cost. In case of failure on the part of the Contractor to provide
this protective equipment, the Company may provide the same to the employees at the cost of
the Contractor.
15.00 Attested photocopy of Driving License of all Contractor’s drivers / operators shall be
deposited with the Company.
16.00 Materials obtained from excavation: Material of any kind obtained from excavation on
the site shall remain the property of the Company.
All fossils, coins, articles of value or antiquity, structure and other remains or things of
Geological or Archaeological interest, discovered on the site shall be the absolute property of
the Company. The Contractor shall immediately upon discovery thereof, and, before removal
inform the Engineer-In-Charge.
17.00 The Contractor will attend site co-ordination meeting as fixed by the Engineer-In-
Charge from time to time to discuss all issues related to works in general and progress in
particular. A site order book shall be kept at the site of work as far as possible, all orders
regarding execution of work are to be entered in this book. All the entries shall be signed by
the Engineer or his representative and Contractor or his representative. The site order book
shall not be removed from the work site and Contractor or his representative shall be bound
to take note of all instructions and directions meant for the Contractor.
18.00 Income Tax deduction will be regulated as per IT Act 1961.
19.00 PAYMENT OF PRICE VARIATION: If the price of diesel, and ‘other components’
(wages, consumables, spares, tyres) increases or decreases, the Contractor shall be
compensated for such increase or recoveries shall be made from the dues of the Contractor
for such decrease as per provisions detailed below (for the relevant period) and the amount of
the contract shall accordingly be varied, subject to the condition that such compensation/
recoveries for variation in prices shall be available only for the work done during the
stipulated period of the contract including such period for which the contract is validly
extended under the provisions of the contract without any penal action. If the contract is to be
extended beyond the stipulated period for completion of the work due to fault on the part of
the Contractor, escalation on prices should not be allowed further. However, during the
extended period (beyond the stipulated period) of work due to fault on the part of Contractor,
recoveries shall be effected as per applicable price variation Clause.
Where the contract period is up to 6 months, no compensation/ recovery for price variation
will be made except for diesel. Where the contract period is more than 6 months,
compensation/ recovery for price variation in respect of diesel, and ‘other components’ will
be effected as per Price Variation formula provided in the Special Terms & Conditions. Such

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compensation/recoveries for variation in the prices when due shall be worked out based on
the following provisions:
19.01 Compensation for price variation on account of diesel, and ‘other components’ (wages,
consumables, spares, tyres) will be paid/ recovered.
19.02 The base date shall be the 10th day prior to the last date on which the tenders were
stipulated to be received (including the last date of submission of bid as mentioned in the NIT
prior to revision, if any) for working out such price variation.
The compensation of Price variation shall be worked out at monthly intervals and shall be
with respect to the work done during the previous month. The first such payment shall be
made at the end of one month after the month (excluding) in which the tender was accepted
and thereafter at monthly interval.
19.03 Benchmarking of price variation on account of diesel will be done on the basis of price
of the diesel of the retail outlet of IOC/BP (PSUs), nearest to the worksite and the price
variation will be admissible on simple average of diesel rate (nearest to the worksite) of the
period considered for price variation.
19.04 Price Variation for excavation cum removal/Transportation of OB by conventional
Mining on account of Diesel, Wages & other components for Excavation cum
removal/transportation of OB shall be governed by the following formula:

Activity Diesel Component Wage Component Other Components

Formula for price

R×a×(D1-D0)/D0 R×b×(W1-W0)/W0 R×c×(M1-M0)/M0
variation

Excavation, Removal
and Transportation of a = 0.56 b = 0.09 c = 0.04
OB

R = Awarded Rate in Rs/.Cu.M for OB and Rs./Te for Coal.

a = Diesel expressed as percentage of total value of work
b = Wage expressed as percentage of total value of work
c = Other components expressed as percentage of total value of work
D0 = Base price of diesel corresponding to the 10th day prior to the last date on which the
tenders were stipulated to be received (including the last date of submission of bid as
mentioned in the NIT prior to the revision, if any).
D1 = Revised price of diesel, corresponding to period of variation with in the period under
consideration.
W0 = Rate of Wages including VDA per day of unskilled worker as per HPC
recommendations, published by CIL, related to 10th day prior to the last date on which the
tenders were stipulated to be received (including the last date of submission of bid as
mentioned in the NIT prior to the revision, if any).
W1 = Rate of Wages including VDA per day of unskilled worker as per HPC
recommendations, for the period to which escalation/de-escalation relates, as published by
CIL.

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M0 = All India Whole Sale Price Index for all commodities (WPI) as published by RBI
Bulletin, Ministry of Industry & Commerce, Govt. of India, related to 10th day prior to the
last date on which the tenders were stipulated to be received (including the last date of
submission of bid as mentioned in the NIT prior to the revision, if any).
M1 = Average All India Whole Sale Price Index for all commodities (WPI) for the period to
which escalation/de-escalation relates as published by RBI Bulletin, Ministry of Industry &
Commerce, Govt. of India.

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3. SPECIAL TERMS & CONDITIONS FOR HIRING CONTRACTS EXCAVATION,
REMOVAL OF OVERBURDEN, EXTRACTION OF COAL AND
TRANSPORTATION.
1.00 The Contractor, before starting the work, shall furnish to the General Manager/ Project
Officer /Engineer-In-Charge the list of equipment e.g. Excavator / Pay loaders / drills /
surface miner/ tippers/ dumpers / light motor vehicle etc. As prescribed in the NIT proposed
to be deployed for the work, with the related papers of registration, fitness certificate,
permits, licenses, Insurance, driving licenses etc. for inspection. No equipment/dumpers shall
be deployed for the work without the approval of the Project Officer/ General Manager/
Engineer-In-Charge.
2.00 The equipment/dumpers deployed in any other project of the Company or any Project of
any Subsidiary of Coal India Limited, shall not be diverted for the work without the approval
of the Company. Similarly, the equipment / dumpers deployed for the work shall not be
diverted to any other project without the approval of the General Manager / Engineer-In-
Charge.
3.01 The Contractor shall deploy adequate number of matching equipment/dumpers at least
as per NIT for the satisfactory execution of the work.
3.02 Only tipping trucks with mechanical unloading arrangements shall be deployed by the
Contractor and in no case "Dala" trucks shall be deployed or permitted to be deployed for the
work.
3.03 Only equipment, as elaborated above, in good and safe condition having valid fitness
certificate permits/ licenses etc. (wherever applicable) and in respect of which the required
taxes/ fees have been deposited and which are properly covered by insurance, shall be
deployed for the work.
The Company shall have the right to inspect or arrange inspection of the vehicles/ equipment
deployed by the Contractor for the work at any time and declare any vehicle/ equipment
unsafe and ask for its immediate withdrawal from the site/ operation. The Contractor shall
ensure prompt/ immediate compliance of the same.
3.04 The Contractor shall at his own cost, arrange for regular checking/ maintenance/ repair
of the tipping trucks/ equipment and keep them in good and safe conditions at all times.
Proper records of such checking/ maintenance/ repair shall be maintained in a Log Book kept
on the equipment / vehicle for the purpose, which shall be readily available for inspection
whenever required.
3.05 Only experienced, skilled and disciplined operators / drivers of sound health, good
behaviour and antecedents having valid and requisite driving/statutory license as applicable
shall be deployed by the Contractor for operating the equipment/ driving dumpers deployed
for the work.
In no case any unauthorized driver of the tipping trucks or operator of pay loaders/ equipment
shall be permitted by the Contractor.
The Contractor shall post adequate number of competent, experienced, skilled and disciplined
persons having good antecedents for satisfactory execution of the work. A list of all such
persons shall be kept in the office of the Contractor and a copy of the same shall be furnished
to the General Manager/Project Officer as and when required. All these persons shall be in
the regular employees and under direct administrative control of the Contractor and the
management shall have no responsibility/ liability whatsoever in this regard.

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3.06 The tare-weight, gross weight, maximum carrying capacity of the dumper / tipping truck
and the dimensions of the body of the dumper / tipping truck shall be clearly indicated on the
body of each dumpers deployed for the work and maintained in good legible condition, at all
times.
3.07 No addition or alteration to the size of the body or any such dumper / tipping truck shall
be carried out, without prior approval of the Project Officer/ General Manager.
The dumper / tipping truck shall be loaded only up to the maximum carrying capacity and
shall not be overloaded under any circumstances.
4.00 No manual workers shall be engaged by the Contractor for loading/ unloading of the
dumper / tipping truck or loading of wagons, under any circumstances whatsoever.
5.00 The Contractor shall bring/ take back and arrange for the transportation of the dumper /
tipping truck / equipment/ men and materials required for the work at his own cost.
6.00 Contractor's dumper / tipping truck should ply only on specified routes/ roads. In case,
plying of the dumper / tipping truck on any other route/ road becomes necessary, due to any
reason, prior approval for the same shall be taken by the Contractor from the Project Officer/
General Manager. In case of violation of this provision, penalty may be imposed on the
Contractor and/ or the contract terminated.
7.00 The work shall be executed round the clock or during specified period on all the days of
week as directed by the Project Officer/ General Manager and the Contractor shall be obliged
to comply with the same.
8.00 The Contractor shall not have any claim whatsoever for the idleness of his equipment /
dumpers due to non-availability of working site or any dislocation enroute and / or for any
other reason.
9.00 The Contractor shall maintain proper records in English/ Hindi of the trucks/ equipment/
persons, etc. deployed for the work, work done, daily attendance of the employees, payment
to the employees etc. and the Company shall have the right of access to and inspection of
these records or to call for any or all these records or ask the Contractor to submit such
reports as it considers necessary and the Contractor shall be bound to comply with such
instructions.
10.00 The Company shall have no responsibility/ liability whatsoever for any accident/
damage to the Contractor's vehicle/ equipment in transit or while engaged in the work.
11.00 If the Company suffers any loss on account of suspension of production or idleness of
its equipment/ employees or on any other account or damage to its property, due to any
failure on the part of the Contractor or due to any act of omissions or commission on the part
of his representative/ employees or from the trucks/ equipment of the Contractor, the value of
the same as assessed by the Company, shall be recovered from the Contractor's bill/ Security
Deposit. The decision of the Company in this regard shall be final and binding on the
Contractor.
12.01 Where wagons are being weighed at the loading end, payment for coal/middlings
transported to the siding/ CHP (where wagons are being loaded), loading of the tipping trucks
by the Contractor's pay loader (s), picking, breaking and wagon loading by Contractor's pay
loader (s), shall be made on the basis of the RR weight of coal/middlings despatched, duly
reconciled with the measured quantity every month and after effecting deductions of
penalties/ recoveries as per terms & conditions of this contract.

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12.02 (i) Where wagons are not being weighed at the loading end, payment for the items of
work stated in 12.01 above shall be made on the basis of the actual weight of coal received by
the Power Houses/ consignees as per the weighment of the wagons at their end, duly
reconciled with measured quantity every month.
(ii) If in the case of wagons not being weighed at the loading end, the payment is made by
any consignee on the basis of RR weight, the Contractor (s) shall be paid accordingly
however duly reconciled with measured quantity.
(iii) In the case of wagons not being weighed at the loading end, 90% payment for items of
work stated in 12.01 above, shall be made provisionally on the basis of RR weights. Balance
payment shall be made after reconciliation, as explained in (i) above and effecting deduction
of penalties/ recoveries as per terms & conditions of this contract.
12.03 In the case of coal transportation from face to stock, if the trucks/tipping trucks are not
being weighed, payment shall be made on volumetric measurement of the coal transported,
converted to weight as per conversion factor adopted by the Company for the work duly
reconciled with the measured opening and closing stocks for the month and off-take from
stock to the siding/ CHP as per 12.01/12.02 above and payment shall be made to the
Contractor (s) accordingly.
12.04 In case two or more Contractors are engaged for the transportation work, the reconciled
total quantity for the month arrived at in 12.01/12.02 & 12.03 above shall be distributed
between the transporting Contractors, in proportion of the number of trips performed by each,
during the month or in any other manner which the General Manager considers more
appropriate.
12.05 In cases there is mixed contractual and departmental transportation to
stock/CHP/Siding, the quantity transported departmentally shall be separated to arrive at the
quantity transported contractually for 12.01/12.02 & 12.03 above.
13.00 In case two or more Contractors are engaged on picking/ breaking and wagon loading,
the distribution of the reconciled quantity for the month, arrived at in Clause 12.01, 12.02 &
12.03 above.
14.00 In case of transportation of coal to the Washery, payment shall be made on the basis of
the actual quantity received at the Washery, as per weighment of the trucks at the washery
end, subject to such verification as the General Manager may consider necessary and
appropriate.
In case the washery weighbridge goes out of order, the Project Officer shall make alternative
arrangement for weighment of the trucks or the weight at the loading end shall be taken as the
weight of coal received at the washery, subject to such checking/ verification as the Project
Officer/ General Manager may deem necessary.
15.00 In case the weighbridge of the loading end goes out of order or is not available, the
Project Officer/General Manager shall make alternative arrangement for weighment of the
trucks or such arrangement (s) as he considers necessary to ensure that all coal loaded at the
loading end reaches the destination.
16.00 In case the tipping truck / dumper is being weighed both at the loading end as well as
unloading end, the figures of weighment at both the ends shall be reconciled every month in
respect of each Contractor and if there is any shortage of coal received at the unloading end,
the value of coal found short, will be deducted as under:

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a. For the variation in quantity upto 2% (two percent) at the rate of prevailing sale price of the
said grade of coal
b. For the variation in quantity exceeding 2% (two percent) double the then prevailing rate.
The aforesaid deduction/recovery shall be made including all royalty, cess etc. from the
running on A/c bill and/or Security Deposit of the transporting Contractor (s) concerned or
otherwise, specifically mentioned in work order/agreement.
17.00 No payment shall be made to the Contractor for stone/ shale/ bands/ extraneous
materials segregated at the siding/ coal handling plant/ stock/ washeries in the process of
dispatching coal to consumers.
18.00 If the work of transportation/ removal of picked out band/ shale/ stone/ extraneous
materials/ overburden/ washery rejects is contracted out payment for the same shall be made
on the basis of volumetric measurement of trucks, duly verified against the volumetric
measurement of such materials at the site of unloading where weighment of such materials is
not possible.
19.00 In case two or more Contractors are engaged for loading of wagons at any siding, the
allocation of wagons to be loaded by each of them will be decided by the Project Officer/
General Manager, which will be final and binding on each Contractor.
20.00 Wagons supplied at the siding shall be loaded by the Contractor (s) within the free
loading time given by the railways / any period decided upon by the management. Such time
period may vary periodically.
21.01 (i) If the demurrage of wagons occurs due to less availability of coal at the siding
because of less transportation of coal, the Contractor shall be held responsible and liable for
the same and the demurrage charges incurred shall be recovered from him.
(ii) If the demurrage is due to failure on the part of two or more coal transporting Contractors,
the demurrage charges shall be apportioned by the General Manager/ Project Officer,
amongst the concerned Contractors as he considers appropriate and his decision in the matter
shall be final and binding on each of these Contractors.
21.02 (i) If the demurrage occurs due to failure on the part of Contractor, the demurrage
charges incurred shall be recovered from the Contractor.
(ii) In case there are two or more Contractors for wagon loading, the Contractor who has not
completed the loading of all the wagons allotted to him, within the free loading time, shall be
held responsible and liable for the demurrage and demurrage charges for the full rake shall be
recovered from him.
(iii) In case demurrage of any rake occurs due to failure on the part of two or more wagon
loading Contractors, demurrage charges for the rake shall be recovered in proportion of the
number of wagons allotted to each of them for loading.
21.03(i) If the demurrage of wagons occurs due to failure on the part of the picking and
breaking Contractor, for not making available adequate quantity of clean and sized coal free
from stone/ shale/ extraneous materials, he shall be liable for the demurrage charges incurred
and the same shall be recovered from him.
(ii) In case the demurrage occurs due to failure of two or more picking/ breaking Contractors,
the demurrage charges shall be apportioned in the manner as considered appropriate by the
Project Officer/ General Manager and his decision shall be final and binding on each of the
concerned Contractors.

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22.01 The Contractor, if allowed to load wagon, shall be also responsible for cleaning of the
siding tracks/ between the line and on both sides of the same, leveling of coal loaded into the
wagons and lime washing on the top of the same, in respect of the wagons allotted to him/
each of them.
In case any rake is put on demurrage/ any penalty is imposed on the Company for failure on
the accounts, the same shall be recovered from the Contractor/s concerned.
22.02 In case any derailment of wagons occurs due to non-cleaning of the tracks by the
Contractor, if allowed to load wagon, the charges/ penalties for the same levied by the
Railways as also the demurrage charges for the same shall be recovered from the defaulting
Contractor (s).
22.03 All such charges/ penalties shall be apportioned between the defaulting Contractors, as
the General Manager thinks fit and reasonable and his decision in all the above cases shall be
final and binding on the Contractors concerned.
23.00 In order to ensure proper loading of wagon, the Contractor shall ensure loading upto
proper level keeping in view the stipulated carrying capacity of the wagons and the loading
will be done as per directions of Colliery/ Project/ Area officials responsible for the
supervision of the loading of wagons at siding.
24.00 The Contractor shall load clean coal free from stone/ shale/ bands/ extraneous materials
and of stipulated size.
(Note: Provisions at Clause 12.01 to 24 shall be guided by provisions of “Measurement of
Coal Removal and Regulations in Payment of Coal” under Special Notes and Additional
Terms and Conditions)
25.00 The monthly rate of removal of OB and extraction of Coal shall be as per removal
schedule of the agreement. However, the Engineer-In-Charge (GM/Project officer) may call
upon the Contractor, for a limited period, to increase monthly rate of removal of OB/Coal or
both up to (+)20%. The Contractor shall make necessary arrangement for the increased rate
of removal and no claim shall lie against the Company on account of such increase ordered.
In case of exigencies, the Engineer-In-Charge may call upon the Contractor, for a limited
period, to increase monthly removal of OB/Coal or both to a further higher range (mutually
agreed), and no claim whatsoever shall lie against Company on account of such variation
ordered.
26.00 In case a Contractor fails to deploy adequate number of equipment, the Company may,
without any reference to the Contractor, deploy its own equipment and /or make alternative
arrangements. The extra expenditure incurred by the Company for such use of Company’s
equipment or for making alternative arrangements shall be recovered from the Contractor.
27.00 The Contractor shall provide foot-wears, DGMS approved helmets, dust musk
florescent jacket, safety appliances and other protective equipment, to his employees as
provided in the law, at his own cost. In case of failure on the part of the Contractor to provide
this protective equipment, the Company may provide the same to the employees at the cost of
the Contractor.
28.00 Attested photocopy of Driving License of all Contractor’s drivers / operators shall be
deposited with the Company.
29.00 Materials obtained from excavation: Material of any kind obtained from excavation on
the site shall remain the property of the Company.

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All fossils, coins, articles of value or antiquity, structure and other remains or things of
geological or archaeological interest, discovered on the site shall be the absolute property of
the Company. The Contractor shall immediately upon discovery thereof, and, before removal
inform the Engineer-In-Charge.
30.00 The Contractor will attend site co-ordination meeting as fixed by the Engineer-In-
Charge from time to time to discuss all issues related to works in general and progress in
particular. A site order book shall be kept at the site of work as far as possible, all orders
regarding are to be entered in this book. All the entries shall be signed by the Engineer or his
representative and Contractor or his representative. The site order book shall not be removed
from the work site and Contractor or his representative shall be bound to take note of all
instructions and directions meant for the Contractor.
31.00 Income Tax deduction at source will be regulated as per IT Act 1961.
32.00 PAYMENT OF PRICE VARIATION: If the price of diesel, and ‘other components’
(wages, consumables, spares, tyres) increases or decreases, the Contractor shall be
compensated for such increase or recoveries shall be made from the dues of the Contractor
for such decrease as per provisions detailed below (for the relevant period) and the amount of
the contract shall accordingly be varied, subject to the condition that such compensation/
recoveries for variation in prices shall be available only for the work done during the
stipulated period of the contract including such period for which the contract is validly
extended under the provisions of the contract without any penal action. If the contract is to be
extended beyond the stipulated period for completion of the work due to fault on the part of
the Contractor, escalation on prices should not be allowed further. However, during the
extended period (beyond the stipulated period) of work due to fault on the part of Contractor,
recoveries shall be effected as per applicable price variation Clause.
Where the contract period is up to 6 months, no compensation/ recovery for price variation
will be made except for diesel. Where the contract period is more than 6 months,
compensation/ recovery for price variation in respect of diesel, and ‘other components’ will
be effected as per Price Variation formula provided in the Special Terms & Conditions. Such
compensation/recoveries for variation in the prices when due shall be worked out based on
the following provisions:
32.01 Compensation for price variation on the account of diesel, and ‘other components’
(wages, consumables, spares, tyres) will be paid/ recovered.
32.02 The base date shall be the 10th day prior to the last date on which the tenders were
stipulated to be received (including the last date of submission of bid as mentioned in the NIT
prior to revision, if any) for working out such price variation.
The compensation of Price variation shall be worked out at monthly intervals and shall be
with respect to the work done during the previous month. The first such payment shall be
made at the end of one month after the month (excluding) in which the tender was accepted
and thereafter at monthly interval.
32.03 Benchmarking of price variation on account of diesel will be done on the basis of price
of the diesel of the retail outlet of IOC/BP (PSUs), nearest to the worksite and the price
variation will be admissible on simple average of diesel rate (nearest to the worksite) of the
period considered for price variation.
32.04 Price Variation for Excavation, Removal of Overburden, Extraction of Coal and
Transportation - Composite work
32.04 Price Variation for

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a). Excavation, Removal and Transportation of OB.
b) Extraction and Transportation of Coal.
c) Extraction of Coal by Surface Miner.
d) Loading & Transportation of Coal extracted by Surface Miner.
on account of Diesel, Wages & other components shall be governed by the following
formula:
Activity Diesel Component Wage Component Other Components
Formula for price
R×a×(D1-D0)/D0 R×b×(W1-W0)/W0 R×c×(M1-M0)/M0
variation
Excavation, Removal
and Transportation of a = 0.56 b = 0.09 c = 0.04
OB
Extraction and
Transportation of a = 0.46 b = 0.15 c = 0.05
Coal
Extraction of Coal by
a = 0.29 b = 0.07 c = 0.01
Surface Miner
Loading &
Transportation of
a = 0.37 b = 0.25 c = 0.07
Coal extracted by
Surface Miner
R = Awarded Rate in Rs/.Cu.M for OB and Rs./Te for Coal.
a = Diesel expressed as percentage of total value of work
b = Wage expressed as percentage of total value of work
c = Other components expressed as percentage of total value of work
D0 = Base price of diesel corresponding to the 10th day prior to the last date on which the
tenders were stipulated to be received (including the last date of submission of bid as
mentioned in the NIT prior to the revision, if any).
D1 = Revised price of diesel, corresponding to period of variation with in the period under
consideration.
W0 = Rate of Wages including VDA per day of unskilled worker as per HPC
recommendations, published by CIL, related to 10th day prior to the last date on which the
tenders were stipulated to be received (including the last date of submission of bid as
mentioned in the NIT prior to the revision, if any).
W1 = Rate of Wages including VDA per day of unskilled worker as per HPC
recommendations, for the period to which escalation/de-escalation relates, as published by
CIL.
M0 = All India Whole Sale Price Index for all commodities (WPI) as published by RBI
Bulletin, Ministry of Industry & Commerce, Govt. of India, related to 10th day prior to the
last date on which the tenders were stipulated to be received (including the last date of
submission of bid as mentioned in the NIT prior to the revision, if any).

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M1 = Average All India Whole Sale Price Index for all commodities (WPI) for the period to
which escalation/de-escalation relates as published by RBI Bulletin, Ministry of Industry &
Commerce, Govt. of India.

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4. SPECIAL NOTES AND ADDITIONAL TERMS & CONDITIONS FOR HIRING
CONTRACTS EXCAVATION, REMOVAL OF OVERBURDEN, EXTRACTION OF
COAL AND TRANSPORTATION
1. Scope of Work:
The Contractor, at all times during the contract period, ensure the fulfilment of its obligation
in respect of excavation, removal, depositing of overburden, extraction and delivering coal in
accordance with applicable laws, mining plan, the provisions of the Agreement and good
industry practice.
The Contractor shall remove overburden excavated from mines/specified locations and
deposit the same, as per provisions of the agreement, at specified locations decided by EIC or
shown in the mine plan.
The Contractor shall extract coal from mines and deliver at specified location as per
provisions of the agreement at specified location(s) decided by the Engineering charge.
The Contractor agrees and undertakes that the geometry of the mines including bench height
and width of coal seams, Overburden and inter-burden shall at all times conform to
provisions of this agreement, statutory provisions and standard industry practice.
The work proposed covers removal of OB, de-coaling of area and back filling / dumping the
same with available excavated spoils by deploying HEMM. The Contractor is expected to
execute any of the above work or all the works as per items covered under Bill of Quantities.
This scope of work thus covers any or all of the following as specified in the Bill of
Quantity:-
i) Removal / excavation of earth / soil (all kinds) / rock (all kinds) in various strata at all
depth including transportation of the same, following approved route, dumping, spreading /
dozing and allied works in specified dumping area(s) / adjoining area(s)/ subsided area(s) /
existing dump(s) using heavy earth moving machineries.
ii) Extraction / winning of coal (free from extraneous materials) from various strata and its
transportation following approved route upto specified area like departmental stock yard /
coal dump / railway siding / coal handling plant etc. as desired by Department using
conventional HEMM or Surface Miner as well as dumpers, tippers etc.
iii) Loading into wagon deploying HEMM as and when required.
iv) Refilling / back filling of affected area after winning of coal including loading,
transportation, dumping, spreading, compacting etc. all by mechanical means. Such refilling /
back filling may be carried out simultaneously during excavation and transportation stage of
overburden i.e. earth, soil, rock (all kinds) depending on availability of de-coaled area as per
direction / approved work plan.
It should be the duty and responsibility of the Contractor to report to the management as soon
coal is exposed / likely to be exposed.
The Contractor expressly agrees that excavation, removal of overburden, extraction of coal
and delivery of coal shall be as per agreed work schedule.
Contractor shall be solely responsible for security of the extracted coal till delivery up to the
Department’s specified destination. Contractor shall indemnify the Company from any
pilferage in handling of coal and also be liable to pay compensation for any mishandling of
such materials at any stage of operation upto the delivery at the destination.
2. Equipment:
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The Contractor shall deploy their diesel operated heavy earth moving machineries consisting
of any or all of the following:
a) Shovel / Scrapper / Excavator.
b) Dumper / Tipper.
c) Dozer / Grader.
d) Wagon drill / blast hole drill and other deep hole drilling equipment.
e) J. H.Drill.
f) Compressor.
g) Water sprinkler.
h) Pay loader.
i) Surface Miner
j) Pump / Motor
k) Any other equipment required for completion of the work.
Numbers, size and capacity of such equipment shall be brought to site considering bid
provisions, if any, or as directed by Department to facilitate required output within the
specified time frame and also environmental consideration.
3. Working Parameter:
a) The area required to be excavated shall be shown in the plan / drawing given by the
Engineer-In-Charge. The Contractor should sign the plan with pre-level survey and same
should be the base plan for working.
b) The area thus set out shall be cleared from all obstruction such as rubbish of all kind,
vegetation, bush etc. No additional payment shall be made to the Contractor for such works.
c) After clearance of site, the central line of excavation will be given by the Engineer-In-
Charge or his representative and it will be the responsibility of the Contractor to go ahead
with further detailed layout, bench marks etc. The permanent bench marking by constructing
pillars, centres shall be permanently laid by the Contractor at his own cost and shall remain at
places till handing over the work/completion of the work.
d) The proposed site including the size of the block may vary depending upon geo-mining
conditions and subject to mine working condition.
e) The site of dumping as shown in plan or as originally conceived may change depending on
availability of space.
f) The deployment of equipment is to be done by the Contractor, considering the working
conditions, depth of the mine working, etc. in consultation with the EIC.
g) Excavation shall include removal of coal/soil as deliberated at 1(i) & (ii), all kinds (wet or
dry) exactly in accordance with all levels and contours shown on the plan or as directed by
the Engineer-In-Charge. No extra payment will be allowed for removal of semi liquid
mud/sludge during the entire excavation of soil / or rock including coal and the rate quoted
for the respective items of work shall be deemed to have been covered by the same. It shall
be taken to the exact level and gradient of the lowest floor and the sides shall be cut by
maintaining the statutory benches as required for the purpose.

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h) Environment Protection Act, 1986 and rules and regulations made thereunder from time to
time are to be strictly followed for blast hole drilling, blasting, excavation, loading, hauling
and dumping of broken rocks / soil-earth by mechanical means. Air pollution control
measures are to be adopted as per SPCB and CPCB norms. Sufficient Sprinklers are to be
used to prevent air pollution. Dumping of OB shall be at specified location. Height of dump,
slope of the dump is to be followed as per instruction of EIC.
The Contractors shall follow the relevant provisions of clearance, as communicated by
Ministry of Environment, Forest and Climate Change (MOEF&CC), as applicable for the
mine / project and also instruction of Engineer-In-Charge.
i) Explosives:- Supply of explosives, detonators and related materials and accessories will be
made by Company free of cost. The quantity to be issued shall be to the extent as per
established norms for such work.
The Contractor shall have to submit necessary programme before drilling with proper blast
hole design for taking up blasting work whenever necessary to Management well in advance
for uninterrupted progress of work.
The services of statutory supervisory personnel as required for the work will be provided as
and when considered necessary by the Management free of cost. Blasting shall be done by
Department free of cost. However, necessary supporting manpower required for such blasting
is to be provided by the Contractor. Department shall transport the explosives from
Departmental magazine.
j) Overburden is to be dumped at site indicated by Engineer-In-Charge or his representative.
Necessary access road /haul road as required for the work for movement of vehicle / HEMM
to the place of work and for transportation of excavated soil / rock to disposal point are to be
made / maintained (as the case may be) by the Contractor for which no extra payment shall
be made. For management of OB dump yard, haul roads, and working faces, dozers and
graders are also to be provided. The Contractor’s quoted rate shall be deemed to cover the
same.
However, if soil transportation route follows any existing road (colliery road / DB road etc.),
the maintenance of the same shall be the responsibility of Management/ appropriate
authority.
Extracted coal is to be transported to appropriate dump yard / railway siding / stock yard/
CHP / washeries etc. as decided by Engineer-In-Charge. Necessary weighment through
designated weighbridge shall also be covered in the scope of work, if so required. Necessary
access/haul road for extraction of coal shall also be the responsibility of the Contractor
including its making and maintenance. For management of coal dump yard(s), haul road(s)
and working face(s), dozer(s) and grader(s)are also to be provided. The Contractor’s quoted
rate shall be deemed to cover the same.
However, if the coal transportation route follows any existing road (colliery road / DB road
etc.), the maintenance of the same shall be the responsibility of Management/ appropriate
authority.
k) Face advance shall be as per approved mine plan/ section. OB removal and coal extraction
shall be as per agreed work schedule. In respect of existing mines/workings, this can be seen
at the office of GM of concerned Area.
l) The Contractor shall make his own arrangement of dust suppression by water spraying at
faces, loading points, haul roads, transportation roads and dump yards etc. Water, if available,
at working site with the authorities /department, shall be spared free of cost. In case of non-

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availability of such water, arranging water for dust suppression shall be the responsibility of
the Contractor.
m) De-watering and drainage arrangement, as long as required, during the entire execution of
work arising out of rain, sub soil water or stored water shall be the responsibility of the
Contractor. The Contractor will have to provide necessary pumping machineries and pipes.
In the event of failure to provide required pumping arrangement by the Contractor to meet
agreed work-schedule or safety of mines, the Company through its EIC may provide
necessary pumping arrangement. The cost incurred for the same as derived shall be
recovered.
n) Necessary quarry lighting as long as required during the entire execution of work shall be
the responsibility of the Contractor.
NOTE: However, Company may decide based on location / mining consideration if drainage
/de-watering / quarry lighting can be done Departmentally. In case Departmental de-watering
and quarry lighting is preferred, the same be indicated in the bid document and necessary
modification on (m) & (n) above can be incorporated indicating that the same shall be free of
cost.
o) The Contractor shall facilitate cleaning of faces, preparation of ramps and other work to
facilitate movement and plying of machines deployed by him. Necessary equipment like
dozers, graders etc. shall be deployed by the Contractor and shall be considered as a part of
work.
p) Earth as available in the excavation may be kept revived for use / used as far as possible in
the top layer or reclamation / covering the back filling or as directed.
q) The Management shall not be liable for any compensation whatsoever in case of any
detention / idling of the machinery of the Contractor for any reason. The Contractor will fully
indemnify/compensate the Company for the loss suffered by the Company due to stoppage of
work by the Contractor and / or his employees / workers on his / their own accord / and / or
for any damages caused to any property of Company or others due to any act of omission and
commission on the part of the Contractor and / or his employees. The assessment made by the
Company in this regard shall be final and binding on the Contractor.
r) The custodial responsibility in respect of the property of the Management or of the
Contractor will rest on the Contractor fully from the date of the issue of Letter of Acceptance
/ Work Order till the completion / termination of the work and handing over the property
back to the Management.
s) The Company shall provide the required land for execution, entirely or in a phased manner.
The Company may restrict the magnitude of the work depending upon the availability of land
for the purpose for which the Contractor will have no claim on Company and no
compensation on this ground will be paid to the Contractor other than as mentioned under the
General Terms and Conditions of the Contract.
t) The cost of manpower & materials required for making pillars etc. for survey measurement
shall be to the account of Contractor and rates quoted by the Bidder shall be deemed to have
included all such costs.
u) Company would not be liable for any compensation due to stoppage / change in Scope of
work, due to local disturbance, change in Govt. policy, law and any order of judiciary,
obstruction or delay by any outside elements / agency.

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v) Geometry, cross section etc. of haul roads etc. will have to be got checked by the Safety
and Civil Engineering Department of the concerned Project of Company before putting in
use.
4. Detailed Scope of Work: HEMM as detailed in Clause No. 2 above and others as required
shall have to be engaged by the Contractor for the works as detailed below subject to
stipulation in BOQ.
a. Excavation of soil (all kinds and at all levels) and / or rock (all kinds, all strata and at all
levels) from Company’s land and / or from the land (arranged by the Company) at all depth
as decided by EIC.
b. Necessary preparation of site and drilling holes to facilitate blasting (spacing and size of
drilled holes shall be in consultation with Management’s representatives on day to day basis
so as to avoid dispute on fragmentation of rock) in all soil and all rock strata. The agency will
be responsible for drilling in all gradient / terrain and stemming during charging of explosives
as per requirement.
c. Facilitating blasting as described at 3 above
d. Loading the excavated spoils into dumper / tipping truck (size of such tipping tuck /
dumper shall be as per NIT or as decided by Management to limit pollution level).
e. Transporting, unloading and dumping the spoils on dump site or on the land arranged by
the Management / existing dump(s) and spreading or simultaneous dumping and spreading in
layers for filling de-coaled area(s) or subsided area(s) by mechanical means.
f. Necessary drilling to facilitate blasting (spacing and size of drilled holes shall be in
consultation with Management’s representative on day to day basis so as to avoid dispute) in
coal strata, if applicable. The agency will be responsible for drilling in all gradient / terrain
and stemming during charging of explosives as per requirement.
g. Winning and extraction of coal from all strata, using conventional technology such as use
of excavator / drill etc. (capacity and size shall be as per NIT or as decided by Management
to maintain targeted production within specified time period) as per provision of BOQ.
h. Facilitating blasting as described at 3 above.
i. Winning and extraction of coal using Surface Miner from all strata (capacity and size of
Surface Miner shall be as per NIT or as decided by Management to maintain targeted
production within specified time period) as per provision of BOQ.
j. Loading of coal into tipper / dumper, its transportation and unloading at the destination
fixed by the EIC and stacking properly.
k. Loading into wagons by Pay Loader (as per provision of BOQ).
l. Making and maintaining haul roads, access roads. In case of existing mines where haul road
already exists, maintenance of the same shall be within the Scope of work.
m. Back filling the coal faces after completing extraction of entire coal by way of re-handling
of excavated dumped spoil (soil & rock) laid in layers and compacted only when specified in
BOQ.
n. De-watering, drainage arrangement and quarry lighting as long as required for the entire
execution / operation of the work including at the coal benches (if specified in the BOQ). The
Contractor will have to provide required pumping arrangement along with piping.
o. Dust suppression by spraying water at workings as well as haul roads / roads.

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p. All other miscellaneous works for completion of the items of works as per BOQ.
5. Measurements and Payments:
Measurement of OB and Coal:
Before an area is taken up for working, the pre-level survey shall be taken up jointly as
described hereafter on the base plan. The Contractor shall sign the base plan with respect of
which subsequent survey volumes will be determined. Contractors are required to furnish
their proposed work completion schedule indicating month-wise progress keeping in view the
total quantum of work. The schedule so given should be agreed by Engineer-In-Charge.
The initial and final joint survey measurement of the works, coal and Over Burden (OB) shall
be carried out by Area authority in association with HQ Survey Team, CMPDIL / other
Subsidiary team and representative of Contractor.
All interim monthly measurement of OB and Coal shall be done on in-situ basis by Unit
Surveyor along with the representative of Contractor in accordance with survey measurement
as prescribed in the “Code for uniform system of maintenance, control, verification of coal
stock and measurement, verification of over burden removal in all mines of Coal India
Limited”.
Mode of interim quarterly / half-yearly measurement is to be carried out by Area Surveyor,
Unit Surveyor, representative of Head Quarter and representative of the Contractor.
Association of CMPDIL / other Subsidiaries may also be sought with the approval of CMD
of the Company.
Surveying and levelling: -
a) Initial surveying and levelling shall be carried out as per “Code for uniform system of
maintenance, control, verification of coal stock and measurement, verification of over burden
removal in all mines of Coal India Limited”. The Subsidiary shall incorporate such mode in
the bid document.
b) Subsequent Surveying and Levelling: This will be carried out as per “Code for uniform
system of maintenance, control, verification of coal stock and measurement, verification of
over burden removal in all mines of Coal India Limited”.
The dates of all such measurements and also the date of initial measurement will be recorded
on the plan along with the reduced level of each point. If the entries are too numerous and
difficult to accommodate on the plan, a register may be maintained for recording the levels
with dates.
c) When coal seam is exposed, the levels of top of the seam will be taken before the coal is
extracted by Area Surveyor. Similarly, the levels of floor will be taken before the area is back
filled or allowed to get drowned by CMPDIL /other Subsidiary team.
d) In the excavated portion also, the levels of the points along the grid where there are abrupt
changes in the levels should also be taken.
e) A Bench Mark and a base line will be maintained at suitable places away from the quarry
on firm undisturbed ground. The levels and positions of the pillars should be rechecked in
reference to the bench mark and base line every six months by Area Office Surveyor.
f) Measurement of Overburden Removal: Any standard In-situ method for measurement of
quantity of overburden removed can be adopted. The modern system of survey measurement
such as Electronic Total Station (ETS) and 3D Terrestrial Laser Scanner (3DTLS) shall be

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used in measurement. CIL/ Subsidiary can also adopt any new technology/gadget etc.as
approved by CIL or Subsidiary for measurement of quantity of overburden.
The initial and final measurement of HOE patch shall be done by CMPDIL/third party by
3DTLS. For contract more than one year, half yearly and annual measurement of OB shall
also be reconciled on the basis of measurement by CMPDIL/third party done by 3DTLS.
Note: Every Bill (running on account/final) shall be paid on measured quantity (survey
measurement as above) on monthly basis. However, it shall be reconciled Half yearly and
Annually/Final on the basis of measurement by CMPDIL/third party done by 3DTLS.
g) Measurement of Coal Removal: In Situ volumetric measurement of coal production can be
found out in the same manner prescribed in “Code for uniform system of maintenance,
control, verification of coal stock and measurement, verification of over burden removal in
all mines of Coal India Limited”.
h) Regulations in payment for Coal: The volumetric quantities of coal shall be calculated in
accordance with prescribed guidelines in above para. The same shall be converted in ton and
shall be reconciled with the quantity dispatched as per weighment of Railway/ Truck receipts.
Payment will be made on the lesser of the quantities as determined by the above modes.
The conversion factor / specific gravity for the specified seam of coal will be worked out and
shall form the basis of conversion.
In reconciliation, if the quantity of coal delivered by the Contractor at the destination is found
to be less than the quantity measured at the place of work, the Contractor shall be liable to
pay penalty for the variation in quantity upto 2% (two percent) at the rate of prevailing sale
price of the said grade of coal and pay a penalty at double the aforesaid sale price for the
quantity beyond / exceeding the variation of 2% (two percent).
i) The running on account bill will be raised every month or stipulated in the work order /
contract agreement and payment will be made within 30 (thirty) days from the date of passing
of the bill by the executing authority
Note: Every Bill (running on account/final) shall be paid on measured quantity on monthly
basis.
j) Payment will be released on quantity of coal dispatched outside the leasehold limits of the
quarry and quantity of overburden removed after measurement for the above purpose as per
steps mentioned below:
i) Current stripping ratio as mutually agreed, as per NIT/ agreed work schedule shall form the
basis of release of payment in respect of overburden and coal.
ii) On Account payment for removal of OB will be admissible to the Contractor to the extent
of 75% (Seventy Five percent) of the quantity of OB disposed off by the Contractor till the
initial coal seam is exposed for extraction.
iii) Subsequent payment on removal of OB within contract quantity will be restricted on the
basis of agreed stripping ratio i.e. payment will be linked to extraction of coal. However, if
OB removal and coal removal is as per agreed stripping ratio, full payment on removal of OB
shall be made subject to dispatch of coal as indicated above. However, 75% of payment of
OB removal in excess of commensurate quantity as per stripping ratio will be made within
the contract quantity provided the so payable amount do not exceed security amount (i.e
Performance Security & Retention Money) available with the Department.

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iv) Full value of payment due to coal dispatched within the contract quantity shall be released
in ‘On Account’ bills when the coal extracted matches stipulated stripping ratio.
v) In case, coal extraction is more and OB removal is less than the stripping ratio, full
payment on OB removal will be made.
In case, coal extraction and transportation is more than OB extraction compared to agreed
stripping ratio, full payment will be restricted for quantity of coal, based on stripping ratio,
corresponding to the actual OB removed.
However, for the portion of coal quantity for which payments could not be released due to
restriction of the stripping ratio may be released to the extent of 90% of the payable amount
provided the extra coal extracted / transported is dispatched by Company and executing
authority is satisfied about the stability of mining operation undertaken.
vi) The above stipulation for progressive payment is to ensure compliance of targets as per
the mile stone indicated in the schedule of progress. However, actual quantity executed
(Coal& OB) as certified in the final joint measurement shall be paid after re-conciliation in
the final bill irrespective of stripping ratio mentioned in agreed work schedule / Bid.
vii) In case of variation in available stripping ratio compared to agreed stripping ratio, the
same can be modified based on actuals during the course of contract subject to approval of
Competent Authority.
The payment withheld for OB quantity (ref Clause (ii) and (iii) above) will be released
considering the progressive achievement as per the work schedule/revised work schedule as
applicable.
k) Release of payment after extraction/production of coal and transportation to Surface Coal
Dump by the Contractor in those cases where the Contractor is not responsible for non-
dispatch of coal from Surface Coal Dump and the payment is held up for more than 30 days,
the following system is to be adopted provided the coal received at Surface Coal Dump after
weighment:
i) 90% payment for the coal produced and transported up to Surface Coal Dump after
weighment to be considered for payment.
ii) Balance payment for the above coal produced and transported up to Surface Coal Dump as
mentioned at Sl. No. (i), will be released only after its dispatch.
iii) Release of payment for the quantities of OB commensurate with 90% quantity of coal
produced (as per current stripping ratio) and transported to dump shall also be released after
measurement as prescribed in Clause 5.
iv) The payment as made under serial No.(i) and (iii) above shall be treated as provisional
payment and it shall be adjusted, as finalized as per Clause 5(h) and 5(j) above.
NOTE:
1) The above mode of release of payment shall be applicable where Hiring Works involve
both removal of OB and extraction of coal.
In case only coal extraction or only OB removal is in the scope of work, no such restriction
shall be applicable i.e. extraction of coal / removal of OB will be made based on in situ
measurement. However, in case of extraction of coal release of payment shall be subject to
dispatch (90% payment of coal, when coal is not dispatched for more than 30 days).
Mining shall be as per acceptable geometry including bench width and height, statutory
provisions and standard industry practice.

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2) Subsidiaries may also decide its own regulation towards mode of payment for items
executed (duly approved) depending on locational and geo mining site consideration.
However, such mode shall be elaborated in the bid document.
3) The provisions made above are general in nature and can be modified depending on local
considerations with the approval of Subsidiary.

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5. VOCATIONAL TRAINING AND SAFETY REQUIREMENTS
A. VOCATIONAL TRAINING
1. OBLIGATION ON THE PART OF CONTRACTOR.
i) Contractor shall ensure Initial and Refresher Vocational Training to his employees and
supervisors as per Vocational Training Rule 1966 (read with any amendments) at the
Company’s training centre. Training shall be imparted to all workers, well in advance, before
deployment in the mines. Trainees completing the training successfully shall be issued
Training Certificate/Card. Trainees shall be entitled to receive stipend as per Mines
Vocational Training Rules, 1966 (and its amendment from time to time) and /or other
applicable minimum wages/remuneration whichever applicable for the period of training
concerned.
ii) The Contractor shall pay stipend as per Mines Vocational Training Rules, 1966 (and its
amendment from time to time) and /or other applicable minimum wages/remuneration
whichever is applicable to the entitled trainees as per Vocational Training Rule 1966 for the
entire period of training through Bank within 30 days of completion of training. In case of
failure to pay stipend, the employer shall pay the same to trainees who complete training
successfully. Payment so made, shall be recovered from the bill of the Contractor.
iii) The cost of stipend as per Mines Vocational Training Rules, 1966 (and its amendment
from time to time) and /or other applicable minimum wages/remuneration whichever
applicable to impart Vocational Training, shall be borne by the Contractor.
iv) Contractor shall receive training card/ certificate for trained persons, from the employer’s
training centre. The Contractor shall maintain record of such trained persons with copy of
certificate. A copy of certificate shall be submitted to the Engineer-In-Charge. Only trained
persons shall be deployed for the contracted work.
v) The contractor at their own cost, shall arrange training for all their operators and
technicians through effective Simulators and 3D virtual Reality Systems before their actual
deployment in the job and such training shall also be imparted at regular intervals as per
Vocational Training Rules (and its amendment from time to time) to maintain their safety-
oriented skills.
vi) The Contractor shall ensure that only trained and skilled persons are deployed at work site
during the contract period.
2. OBLIGATION ON THE PART OF EMPLOYER.
The employer shall arrange vocational training at the employer’s training Centre as may be
required in conformation with V.T. Rule and the nature of work. Certificate to workers,
completing training successfully shall be issued. Record of such trainees with their
photograph shall be maintained.
B. SAFETY REQUIREMENTS
1.
i) The Contractor shall comply with provisions of this agreement and shall be responsible to
carry out all the jobs & activities related to this contract strictly as per the provisions of all
applicable statutes including Mines Act 1952, Coal Mines Regulation 2017, Mines Rules
1955 and related amendment thereof issued from time to time and conform to Standard
Industry Practice for securing the safety of mines, equipment and individual within and about
the site of operation/activities of the contract.

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The Contractor shall through its Board of Directors/Partners shall nominate either himself or
a person(s) who shall be responsible as per applicable statutes including Mines Act 1952 and
Coal Mines Regulation 2017, for the management, control, supervision or direction of all the
jobs & operation/activities assigned in this contract as above. Prior to start of the job of this
contract, the contractor shall submit this nomination documents to the Engineer- In-charge,
who shall arrange for submission of notice in prescribed format(s) to Regulatory Authorities
or appropriate Government Authorities.
ii) The Contractor shall develop, implement and administer a surveillance, safety and health
programme for providing a safe environment on and about the mine / site. Contractor shall
provide relevant workplace safety and health hazards awareness and training to his workers
prior to commencing and as work progresses. Such safety & health measures shall be
implemented by the contractor during entire contract period or extended period.
iii) Safety requirement include measures associated with safe movement, safety management,
safety equipment, fire safety, enforcement and emergency response.
iv) The contractor shall at all times be responsible for observance of safety procedure by its
employees and agents.
v) The Contractor shall comply with the instructions issued by appropriate Government
Authority and directions of Employer.
vi) “All cost or expenses arising out of or relating to compliance of safety requirement & up-
skilling of his employees shall be borne by the Contractor.”
vii) Contractor shall submit list of persons deployed for the work to Mine Management and
Engineer-in-Charge and Mines Manager. No person shall be deployed for the work without
knowledge of the Mine Manager.
viii) All employees deployed for the work shall undergo Initial Medical Examination - IME
and Periodical Medical Examination - PME as per statute and the record of the same shall be
maintained by the contractor and copy of the same shall be provided by the contractor to the
office of the Mine Manager for record keeping.
ix) Contractor shall issue “Identity Card” with photograph duly attested mentioning Name of
Contractor, Name of employee, Designation, DOB, Date of IME/PME, VTC and period of
validity etc. to each of his employees. The contractor shall ensure that his employees shall
carry original identity card, while on work and produce for inspection whenever required.
Contractor shall maintain Form ‘A’ of his employees and a soft copy shall be submitted to the
Engineer-In-Charge. Daily attendance of contractor employees shall be marked in Form ‘D’
for IN and OUT.
x) Contractor shall establish effective ongoing communication and co-ordination between
appropriate levels of supervisors, officials and senior officials of the mine prior to
commencing work, which shall include provisions for identifying hazards and the measures
to eliminate and control risks related to the assigned work & the site.
xi) Safety requirement and safe work practices shall be exercised round the clock. In case of
non- compliance of safety requirements and safe work practices or any specific instruction
given in writing by the Engineer-In-Charge, the operation may be suspended till such non-
compliance is rectified. In case of repeated violation of safety requirements, serious in nature,
the Engineer-In-Charge shall have right to suspend the work.
xii) Safe Operating Procedure (SOP)/Code of Practice (COP)/traffic rule for the work shall be
prepared by the contractor and after the approval of the Mines Manager, these shall be

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displayed in working place/important places in languages understood by the employees and
these shall also be handed over to concerned employees by the contractor under proper
record. Copy of SOP and site-specific Code of Practice shall be given to the EIC/Authorized
Representative. Contractor shall deploy qualified and competent persons to ensure proper
management and supervision on the work as per statute and SOP.
xiii) Contractor shall ensure that the installation, running and maintenance, in safe working
order, of all machinery in the mine deployed by him shall be under the charge of competent
persons in each working shift, in accordance with Coal Mines Regulation, 2017 and its
amendment thereof. All these competent persons shall also be authorized by the mine
manager.
All these competent persons shall be trained by the contractor.
Competency of the Operators and Drivers of HEMM and machinery shall be evaluated by a
Evaluation Board constituted by the Mine management in accordance with Coal Mines
Regulation 2017 and its amendment thereof before their actual deployment in the mine. Such
evaluation shall be done through a specified SOP.
xiv) Contractor shall ensure that the competent persons authorized by Mine Manager are
deployed as in-charge(s) of his machines, vehicles, equipment, HEMMs etc., and shall ensure
that before commencing work these are in proper & safe working order. In respect of
electrical machinery, machine-parts, plant, work-shop etc, such competent person shall be an
engineer or electrician holding qualifications as specified in Central Electricity Authority
(Measure relating to Safety and Electric Supply) Regulation, 2010 and amendments thereof.
These authorized competent person(s) shall record the result of such checking & examination
in bound paged book(s) kept for the purpose, which shall be verified by the authorized
representative(s) of Engineer- In-Charge of this contract.
xv) Contractor shall ensure Group Insurance for all employees for a minimum coverage of
Rs. 15 Lakhs or any amount revised from time to time.
xvi) Contractor shall ensure that working hours for his employees comply with relevant
sections of Mines Act 1952 amended from time to time and amendments thereof.
xvii) Contractor shall ensure the arrangements for reporting work related injuries and
diseases, ill health and incidents among his workers while performing work in the mine.
Contractor shall submit list of all accidents and analysis thereof.
xviii) Contractor’s workers shall not remain unattended in the mine and or working face.
Breakdown of machinery in mine shall be attended by competent supervisor of the contractor.
2. Safety requirement for equipment, vehicles and machinery:
i) All equipment shall be provided with adequate safety features as per relevant statutes and
instructions thereunder communicated from time to time. The operator’s seat should be
ergonomically designed. Operator’s cabin shall be air-conditioned and substantially strong to
protect operator from dust, heat and noise and flying object protection. Contractor shall
ensure that all equipment and vehicles deployed by him shall have Audio Visual Alarm
(AVA), rear view camera, proximity detection and warning device, additional warning
system for operator’s fatigue, rear vision system, efficient brakes, turbo charger guard, front
and rear light, speed retarder, Semi/AFDSS, Seat belt & its reminder system, Dump body
Stabilizers, Auto Dipping, Cabin guard extension etc. to conform to the relevant statute.

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ii) Contractor shall deploy only those equipment, HEMM, trucks, tippers, vans and vehicles
etc. in the mine which are designed so as to afford the respective operator a clear and
uninterrupted vision all around while in operation.
iii) Contractor shall ensure that all these machineries which are used in mine shall be fitted
with such safety features or devices as stipulated in the Gazette notification no. G.S.R. 987(E)
issued on dated 01.10.2018, its amendments and related DGMS Circulars issued from to
time. Contractor shall also ensure that the fitment of safety features with minimum design
requirements as mentioned in the DGMS Circular no. 06 of 2020 dated 27.02.2020, are
provided and maintained in safe working order in respect of the machineries
iv) The transport vehicles shall have limiting speed device and load indicator and recorder.
These shall be incorporated with AVA with sound level 5-20% higher than ambient noise
level. The AVA should be of IP-67 compliant. Vehicles shall be fitted with Antiskid and Tail
end protection system.
v) In surface miner shall have automatic water sprinkling arrangement and suitable fire
fighting arrangements.
vi) Contractor shall ensure that truck mounted drill machines designed for tube well drilling
for sources of water shall not be used and only proper type of blast hole drill machine,
especially designed for mining purpose, shall be used in the mine. All drills shall be fitted
with portable fire extinguisher and wet drilling system shall be functional when deployed in
drilling operation.
vii) Contractor shall ensure that all machinery and plant used in connection with this contract
are of good design, sound construction, and suitable material, adequate strength, free from
patent defect and are properly maintained. Contractor shall ensure that no person except an
engineer or other competent person under his supervision shall undertake any work on such
machinery, plant and workshop jobs in which technical knowledge or experience is required.
viii) Contractor shall ensure that only such fitters or mechanics possessing driver's or
operator's license, shall be deployed in mine to carry out test-run of such machineries
deployed by him.
ix) Contractor shall ensure that no person other than the operator or any person so authorized
in writing by the mines manager shall be allowed to ride on a heavy earth moving machinery
deployed in connection with this contract.
3. Road Worthiness of Vehicle:
i) Contractor shall provide roadworthy transport vehicle / pick-up van for movement of his
maintenance crews and operators of equipment, machine, vehicles. These vehicles shall have
limiting speed device and recorder. These vehicles and all other maintenance & Service Van
/vehicles deployed by the contractor shall be fitted with standard safety features required by
the relevant statute. All such vehicles shall maintain / carry - (a) RC Book, (b) Valid
Insurance, (c) Valid Pollution Clearance Certificate(d) Valid Fitness Certificate, (e)
Operation Manual &Maintenance Manual, (f) Any other requirement as per RTO.
ii) The Contractor shall ensure regular checking, maintenance, and repair of all vehicles and
equipment as per best industry practice and keep them in good working condition. Record of
such activities shall be maintained in a logbook and kept in operator’s custody, which shall
always be available for inspection by EIC or his representative. In case of deficiency, EIC
shall have the right to prohibit deployment of such vehicle/equipment.

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4. In case of non-compliance of safety and health requirements as per statutes & provisions of
this contract, Code of Practices, Traffic Rules, Standard operating Procedures, instructions
given by Engineer-in-Charge/Mine Manager / site incharge(s) etc., the following sanctions
and penalties shall be applicable on the contractor:
i) The authorized mine officials shall have the right to stop the work related to this contract
whenever a risk of bodily injury is apparent and to suspend the related operation until the
necessary remedies have been put in place. They shall have the right to send out of the mine
any such person or machine which infringes or attempt to infringe any provision of the Mine
Act- 1952 amended from time to time, Rules, Regulations, by-laws or any order made
thereunder, or fails to carry out the direction given with regards to safety. If any dangerous
condition & operation in the work place of the contractor is observed by the mine official, he
shall withdraw all persons from this place and fence off the site till the danger has been
removed.
ii) Representatives authorized by the Contractor for the management & supervision of the
work in the mine shall be liable for punitive disciplinary action by the contractor actions, in
case of noncompliance of provisions related to discipline, safety & health in connection with
the men, machineries, activities of this contract.
iii) In case of repeated violations involving non-compliances of provisions related to
discipline, safety and health of men and machineries deployed by the contractor, the
Engineer-In-Charge shall have the right to suspend the related work, activities, men,
machines, etc. In such cases, the company through its Engineer-In-Charge shall levy the
compensation from the contractor’s bills for the losses incurred by the company on account
of such suspensions.
iv) Recurrence of same violation more than 3 (three) times shall be construed as repeated
violation. The penalty on account of loss of work due to such violation or actions thereafter,
shall be 5% (five percent) of the value of work for the period of loss. The value of work per
hour shall be derived from the contract value excluding GST by dividing it with contract
period in hours, as per LoA / Work Order.
The compensation such levied shall not be refunded. The aggregate of such compensation
levied shall be limited to 2% (two percent) of the total contract value and shall be apart from
other penalties as applicable under T&C Clause- 6.2(iv). The shortfall in quantity due to
suspended work as mentioned above shall not be included in the quantity accounted for
shortfall penalty.

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6. GUIDELINES ON DEBARMENT OF FIRMS FROM BIDDING
CIL and its Subsidiary Companies shall follow the following guidelines for effecting
‘Debarment of firms from Bidding’ with a contracting entity in respect of Works and
Services Contracts.
1. Observance of Principle of Natural Justice before debarment of firm from Bidding. The
bidder/contractor shall not be debarred unless such bidder/contractor has been given a
reasonable opportunity to represent against such debarment (including personal hearing, if
requested by the bidder/contractor).
2. The terms ‘banning of firm’, ‘Suspension’, ‘Blacklisting’ etc. convey the same meaning as
of ‘Debarment’.
3. The order of debarment shall indicate the reason(s) in brief that lead to debarment of the
firm.
4. The Contracting entity may be debarred from bidding in the following circumstances:
i) Withdrawal of Bid as per relevant provisions of tender document.
ii) If L-1 Bidder fails to submit PSD, if any and/or fails to execute the contract within
stipulated period.
iii) If L-1 Bidder fails to start the work on scheduled time.
iv) In case of failure to execute the work as per mutually agreed work schedule.
v) Continued and repeated failure to meet contractual Obligations:
a. In case of partial failure on performance, agency shall be debarred from future participation
in tenders keeping his present contract alive.
b. On termination of contract.
vi) Willful suppression of facts or furnishing of wrong information or manipulated or forged
documents by the Agency or using any other illegal/unfair means.
vii) Formation of price cartels with other contractors with a view to artificially hiking the
price.
viii) The contractor fails to maintain/repair/redo the work up to the expiry of performance
guarantee period, when it is specifically brought to his notice.
ix) Contractor fails to use Mobilisation advance (if any) given to him for the purpose it was
intended.
x) Contractor fails to renew the securities deposited to the department.
xi) The contractor fails to rectify any lapse(s) in quality of the work done within defect
liability period.
xii) Transgression of any clause(s) relating to Contractor’s obligation defined in the Integrity
Pact wherever such Pact exists.
xiii) Any other breach of Contract or misdeed which may cause financial loss or commercial
disadvantage to the Company.
xiv) If it is determined that the bidder has breached the code of Integrity for Public
Procurement (CIPP) as provided in the tender document.
xv) False declarations w.r.t Make in India Order.

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xvi) In case of supply of sub-standard materials, sub-standard quality of work, non-execution
of work, non-supply of materials, failure to abide by bid security declaration (if any) etc.
In case of price cartel, matter shall be reported to the Competition Commission and
requesting, inter-alia, to take suitable strong actions against such firms.
5. Such ‘Debarment, if any when effected, shall be with prospective effect only. The effect of
‘Debarment’ shall be for future tenders from the date of issue of such Order. No contract of
any kind whatsoever shall be placed to debarred firm after the issue of a debarment order by
DoE/MoC/CIL/Subsidiary (as applicable) if such debarment has been done before the last
date of bid submission. Even in the case of risk purchase, no contract should be placed on
such debarred firms.
In case, any debarred firms have submitted the bid, the same will be ignored. In case such
firm is lowest (L-1), next lowest firm shall be considered as L-1. Bid security/ EMD
submitted by such debarred firms shall be returned to them.
The contracts concluded i.e. issue of LOA/issue of work order, before the issue of the
debarment order shall not be affected by the debarment orders.
6. In case CIL is of the view that a particular firm should be banned across all the Ministries/
Departments by debarring the firm from taking part in any bidding procedure floated by the
Central Government Ministries/ Departments, CIL may refer the case to MoC with the
approval of Chairman, CIL for referring the case DoE with a self-contained note setting out
all the facts of the case and the justification for the proposed debarment, along with all the
relevant papers and documents.
This shall be done only in those case where debarment has been done across CIL and its
Subsidiaries.
7. The debarment shall be for a minimum period of one year and shall be effective for the
concerned Subsidiary for the tenders invited at Subsidiary level. Similarly, in case of tenders
of CIL HQ, debarment shall be for CIL HQ. However, if such ‘Debarment’ has to be made
effective for entire CIL and its Subsidiaries then approval of Chairman, CIL shall be required.
The period of debarment shall not exceed 02 (Two) years. In case of clause (4)(vi) & (xv)
above, period of debarment shall be 02 (Two) years.
8. Once a contracting entity is debarred, it shall be extended to the constituents of that entity,
i.e., partners (jointly and severally) in case of Joint Venture, all the partners (jointly and
severally) in case of Partnership Firm, owner/proprietor in case of Proprietorship Firm. The
names of partners should be clearly specified in Debarment Order. If such debarred
owner/Proprietor/ Partner make/form different Firms/entity and attempts to participate in
tenders, the same will not be entertained during the currency of such debarment. In case the
contracting entity being debarred is a company then only the company shall be debarred.
Note: “Company” means a company incorporated under Company’s Act 2013 or under any
previous company law.
9. The above ‘Debarment’ shall be in addition to other penal provisions of NIT/Contract
document.
10. Debarment in any manner does not impact any other contractual or other legal rights of
CIL and/or its Subsidiaries.
11. In case of shortage of firms (less than three eligible firms) in a particular group, such
debarments may also hurt the interest of CIL and/or its subsidiaries. In such cases, endeavour

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should be to pragmatically analyse the circumstances, try to reforms the firm and may get a
written commitment from the firm that its performance will improve.
12. Approving Authority: The ‘Debarment’ of a contracting entity shall be done with the
approval of the Competent Authority as per the details below:
a) In case the Accepting Authority of the work is Board or Empowered Committee or FDs or
CMD of CIL/Subsidiary Company, then the Competent Authority for debarring shall be
CMD of CIL/Subsidiary Company.
b) In case the Accepting Authority of the work is up to the level of Director of
CIL/Subsidiary Company, then the Competent Authority for debarment shall be Director of
CIL/Subsidiary Company.
13. An order for debarment passed shall be deemed to have been automatically revoked on
the expiry of that period and it shall not be necessary to issue a specific formal order of
revocation.
A debarment order may be revoked before the expiry of the Order, by the competent
authority, if it is of the opinion that the disability already suffered is adequate in the
circumstances of the case or for any other reason.
14. Appellate Authority for debarment orders shall be CMD of CIL/ Subsidiary Company. In
case the debarment is done with the approval of CMD of the Subsidiary Company then
Chairman, CIL shall be Appellate Authority. The appellate authority in case debarment is
done with approval of Chairman CIL, shall be CFD of CIL.
15. Any change on the above may be done with approval of FDs of CIL.
16. All the orders of debarment or orders passed in appeal shall be marked to GM(CMC) /
Civil / concerned HODs of CIL/Subsidiary Company/ Application Admin of e-procurement
portal of CIL/Nodal officers of Subsidiaries. Application Admin of e-procurement portal of
CIL/Nodal officers of Subsidiaries shall maintain the master data of such banned firms which
shall be made available in the public domain (i.e. on the website of CIL/Subsidiaries/ e-
Procurement portal of CIL).

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