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GAIL (India) Limited P.O. PATA, Distt. AURAIYA UTTAR PRADESH – 206241

Phone Nos. 05683 -282077, 282356

TENDER FOR MARINE CUM ERECTION ALL RISK INSURANCE POLICY FOR 6TH FURNACE – GAS

CRACKER UNIT PROJECT AT GAIL, PATA (DOMESTIC BIDDING)

Bid Invitation No. GAIL/PATA/F&A/INS/GCU/2009

Contact Details: M/s. GAIL (India) Limited P.O. PATA, Distt.: AURAIYA (U.P.) – 206 241 Mr. SUSHIL K. GUPTA, DM(F&A) Ph.: 05683-282356 Extn-30057, 30163 e-mail: [email protected]

mailto:[email protected]�

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SECTION - 1

GAIL (India) Limited

Invitation for Bids (IFB) for Marine cum Erection (All Risk) Insurance Policy for 6th Furnace – GCU Project at Pata

Ref. No. GAIL/PATA/F&A/INS/GCU/2009 Dated 03.12.2009 The Insurance Cos.. …………………….. …………………… ……………………… Dear Sir/ Madam, 1. GAIL, Pata invites bids under TWO bid system from eligible bidders meeting the Bid Evaluation Criteria (Refer IFB, Section – 3 of tender document) for Marine cum Erection All Risk Insurance Policy for 6th Furnace – Gas Cracker Unit (GCU) Project for Self & Contractor for Sum Insured Rs. 86.864 crores (for details refer Schedule of Rates -SOR) for period of 12 months including 1.50 months testing and commissioning period wef 01.01.2010 or such later date as may be specified at the time of award. The details regarding the Project, Process description of GCU. Site Location and Plant layout are available at Section - 2 of the tender document. 2. Bid complete in all respect should be submitted in sealed envelope through physical mode on or before the due date & time for submission of bids i.e. by 18th December,2009 by 1500 hrs at the following address:

Central Receipt Section Security Main Gate, GAIL (India) Ltd., P.O. - Pata, Distt. Auraiya (U P) - 206241

In order to clarifiy on any issue regarding this bid, queries may be send to Mr. Surendra Bharti (Mgr – Project) at email [email protected] or to Mr. Sushil K. Gupta at email [email protected]. Further a Cut out address slip to be pasted on the Envelope is enclosed. 2. The General terms & conditions have been stated in Section -3 of the Tender document. 3. Excess: The rates quoted should be with standard minimum excess as stipulated in the tariffs. The details w.r.t. to the quantum of the minimum excess should be clearly mentioned in the proposal.



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4. Quotation

The bidders are requested to submit their quotation for all perils inter-alia under Storage, Erection, Installation, Testing & commissioning in terms of premium rates and premium amount strictly as per the SOR. The offer should be submitted only in typed format and any correction/overwriting should be avoided. GAIL reserves the right to carryout the correction for any arithmetical errors. 5. The other details regarding the Project are as under:

i) BID SECURITY (EMD): Not applicable

ii) DATE & TIME OF PRE-BID MEETING: 09.12.2009, 1130 hrs. (IST) at F&A Dept., Polymer Bhawan iii) LAST DATE & TIME: Upto 18.12.2009, 1500 hrs (IST) FOR BID SUBMISSION

iv) TECHNICAL BID OPENING DATE & TIME: 18.12.2009 at 1530 hrs. (IST)

(after the time of Bid submission)

v) VENUE: GAIL (India) Ltd. P.O. Pata, Distt. Auraiya (U.P.) – 206 241

If any of the days specified above happens to be a holiday in GAIL, the next working day shall be implied.

6. The bidders or their designated representatives, who intend to bid, are invited to attend the pre- bid meeting at the date and time mentioned in this IFB. Corrigendum, if any, to the tender document, shall be hoisted on the website subsequent to the pre-bid meet.

7. This Invitation for Bids (IFB) is an integral and inseparable part of the enclosed Bid Document. 8. GAIL reserves the right to accept or reject any or all offers without assigning any reason, whatsoever. THIS IS NOT AN ORDER

Yours faithfully, for and on behalf of GAIL (India) Limited

Dy. Manager (F & A)

TABLE OF CONTENTS

SL NO

SECTION ITEM

1.0 1 INVITATION FOR BIDS (IFB)

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2.0 2 INTRODUCTION AND OVERVIEW OF GAIL /GAIL PATA & 6TH FURNACE GCU PROJECT

3.0 3 INSTRUCTIONS TO BIDDERS/ GENERAL TERMS & CONDITIONS

4.0 4 SPECIAL CONDITIONS OF CONTRACT

5.0 5 SCOPE OF INSURANCE COVER

6.0 6 SCHEDULE OF RATES (PRICED PART) (SOR)

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SECTION 2

INTRODUCTION AND

OVERVIEW OF GAIL/GAIL PATA & 6th

FURNACE GCU PROJECT

SECTION II

INTRODUCTION AND OVERVIEW OF GAIL/GAILPATA

1. GAIL was established by the Government of India in August 1984 for handling post exploration activities relating to natural Gas. GAIL (India) Ltd, is India's principal natural gas transmission and marketing company with activities expanding to Gas Processing for fractionating LPG, Propane, SBP Solvent and Pentane; transmission of Liquefied Petroleum Gas (LPG); Production of Petrochemicals i.e. HDPE and LLDPE; leasing bandwidth in Telecommunications. The company has extended its presence in Power, Liquefied Natural Gas (LNG) re-gasification, City Gas Distribution and Exploration & Production through equity and joint ventures participations. The Government of India has conferred ‘Nav Ratna’ status to GAIL. 2. Petrochemical Business at GAIL,Pata

Overview

The Company operates a Petrochemical Complex located in Uttar Pradesh, Pata which produces high density polyethylene, linear low density polyethylene and butane. The petrochemical complex is the only petrochemical plant located in north-central India. The petrochemical complex, commissioned in March 1999, has an installed capacity to produce 410,000 tonnes of polyethylene per year and 10,000 tonnes of butane per year. Polyethylene is manufactured under both the G-Lex and G-Lene trade names in numerous grades, including injection mouldings, blow mouldings, raffia, monofilament, pipe and film.

Infrastructure

The petrochemical complex consists of a gas sweetening unit, a C2/C3 recovery unit, a gas cracker and two downstream polyethylene units Installed capacity in the downstream polymer units is based on 7,500 operating hours per year. The following table sets forth certain information regarding the petrochemical complex:

Uttar Pradesh Petrochemical Complex

Feedstock………… Natural Gas from the HBJ Pipeline :

Rich Gas Input 11.6 mmscmd

Lean Gas Input 9.6 mmscmd

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Gas Cracker……… Ethylene 400,000 tpa

Propylene 11,000 tpa

Products…………. Linear Low Density 210,000 tpa

Polyethylene/High Density

Polyethylene

High Density Polyethylene 200,000 tpa

Butene-1 10,000 tpa

Technology………. Gas Sweetening SNEA(P), France

C2/C3 Recovery EIL, India

Gas Cracker Stone & Webster, USA

Linear Low Density Novacor (Sclairtech), Canada

Polyethylene/High Density

Polyethylene Swing Plant

High Density Polyethylene Mitsui, Japan

Swing Plant

Butene-1 IFP, France

Manufacturing Process

Natural gas supplied from the HBJ Pipeline is processed and cracked at the petrochemical complex to separate out ethylene and propylene, which are considered to be the building blocks of petrochemicals. Rich gas first enters the gas sweetening unit where CO2 is removed. The sweetened gas is then separated in GPU into lean gas and C2+ liquids. The lean gas from GPU is compressed and sent into the HVJ Pipeline System. The C2+ fractions are further processed in LPG columns where C2/C3 is separated from LPG/Propane/Pentane/SAP fractions. The C2/C3 mixture enters the Gas Cracker Unit. In the GCU the C2/C3 fraction is cracked to recover ethylene and propylene. The ethylene produced in the GCU is sent to HDPE & LLDPE Swing plants for processing into linear low density polyethylene, high density polyethylene and butane-1. High density polyethylene is produced in both the downstream units. Linear low density polyethylene, however, is produced only in one of the downstream units. The propylene produced in the cracker is sold as a commodity to various customers. Products The Company produces almost all the grades of high density polyethylene used by third-party processing units, including injection moulding, blow moulding, raffia, monofilament, pipe and film. The Company also produces numerous grades of linear low density polyethylene, including film, roto moulding, injection moulding and pipe and conduits. Petrochemical Operations and Maintenance The Company has entered into technology licenses with each of the companies which have provided various technologies used in the petrochemical complex, including SNEA(P), Mitsui, Novacor (Sclairtech), IFP and Stone and Webster. The technology licenses generally provide for training of the Company’s engineers, commissioning assistance, a performance guarantee, a reduced fee in the event of facility expansion and periodic updating of technology. The operations & Maintenance activities is steered by senior executives. The Plant formulates scheduled annual maintenance programmes in consultation with operation department.

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3. LPG Business at GAIL,Pata Apart from above at GAIL,Pata LPG is also being manufactured by processing of Natural Gas with total production capacity of 2,58,250 tonnes per annum. 4. Awards: The major performance awards that have been received by GAIL, Pata are:-

5 Star Rating from British Safety Council for year 2000. Sword of Honor from British Safety Council for year 2001. National Safety Council Award from British Safety Council for consecutive

8 years 1999,2000,2001,2002, 2003 , 2004,2005,2006. Greentech Silver Industrial Safety Award for year 2001-2002 Shrestha Suraksha Puraskar from NSC, Mumbai for year 2002. Prashansa Patra from NSC, Mumbai for year 2003 Greentech Safety Gold Award for year 2002-2003, 2003-2004,

2004-2005,2005-06. No Fatality Award from OISD for year 2002-2003. Best Overall Performance Award from OISD for year 2002-2003. Ranked 1

st

in Group 6 by OISD for safety award for year 2003- 2004. GAIL, Pata won ‘Yogyata Praman Patra’ from NSC, Mumbai presented by

Honorable Minister of Labour & Employment on 5th April 2006.

Winner of Greentech safety Gold Award for 2005-06 International safety award -2005 awarded by British Safety council.

5. Fire & Safety System at Petrochemical Complex at GAIL, PATA Petrochemicals are a major area of GAIL’s business activity. GAIL has set up a world-scale gas cracker plant at Pata, district Auraiya, Uttar Pradesh in northern India, having a design capacity to produce 400,000 TPA of ethylene. Downstream units include an HDPE production unit of 100,000 TPA capacity and an LLDPE/HDPE swing plant of 210,000 TPA capacity. This complex recovers ethane-propane (C2/C3) from natural gas coming from Vijaipur through HBJ pipeline for producing polymers. Conversion of ethane-propane (otherwise used as fuel) from natural gas gives tremendous value addition. GAIL has also set up a LPG plant within the same complex and is activity involved in production & marketing of various hydrocarbons. This installation of GAIL, Pata is located at Pata in Distt Auriaya of UP at a distance of 120 kms by road from Kanpur. It is an ISO 9000, ISO 15000 & ISO 18001 certified company. All the non-routine jobs are being carried out under strict compliance of work permit system. Plant safety committees and central safety committee are constituted and meet quarterly and half yearly respectively to resolve safety related issues. Internal and external safety audits are organized and recommendations complied with. Hazard identification, Risk Assessment, Safety Inspections and compliance of their recommendations are covered under routine activities for continual improvement. At GAIL, Pata the fire protection system designed to fight two major fires at a time anywhere in the complex. The fire & safety services manned around the clock. We have five nos. of fire tenders including one emergency rescue tender to take care of any emergency inside as well as outside the plant premises. Fire & Safety Department is established by recruiting highly qualified and experienced Fire & Safety professionals / Specialist having National and International recognition to their credit to ensure the safety of Environment, Men & Machine. National & international designs are followed during construction, operation & maintenance of Fire Defense System.

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A dedicated 46 KM long fire water line has been laid in the complex. A pressure of 8.5 kg/cm2 is being maintained in fire water line anywhere in the complex by 12 nos. of fire water pumps consisting of 3 nos. of jockeys, 4 nos. of electrical operated and 5 nos. diesel driven pumps. Double headed fire hydrants, monitors, hose boxes, fire extinguishers are provided all around the plant and are being maintained properly. The ethylene column 86 mtrs. in height, standing tallest in the complex is protected by special high volume long range monitors. Whole plant area is provided with intelligent fire alarm system (Microprocessor Based) and being monitored from Fire Control Room. In fire condition, message is transmitted to fire control panel, as well as to the panel provided in respective control room. 04 nos. of emergency sirens are installed at prominent locations to communicate various emergencies to all concerned. Fixed fire fighting installation inside the plant is categorized in two groups’ i.e Non Water Base and Water Base. All Control Rooms are having blast proof construction and automatic fire detection and fire protection system has been provided. TEAL, one of pyrophoric chemical is being used in HDPE & LLDPE plant. The storage area of TEAL has been protected with Dry Chemical flooding system. Hydrocarbon leak detection system has been installed all over the plant areas. The furnace area has been protected with water curtain system hooked up with hydrocarbon detectors. These are activated automatically in case of hydrocarbon leaks in surroundings. Ethylene is stored in specially designed double wall tanks equipped with water spray system. The dyke area of both the tanks is equipped with high expansion foam generators to protect entire area with foam incase of ethylene leakage from the tanks. All Horton spheres & process pumps are protected with automatic water spray system. The loading gantry bays are also fully covered with automatic water spray system, to handle any emergency in the area. Hydrocarbons loading activities are closely monitored by GAIL personnel & contract persons are not allowed to enter in this area, unless the loading is completed. We have placed a close circuit camera to watch this area. To check the emergency preparedness, mock drill & on site emergency exercise are being conducted on monthly & half yearly basis respectively. The whole exercise is monitored by Senior Officials for further improvement. GAIL, Pata has mutual aid agreement with neighboring industries NTPC & GAIL compressor station. Training has a very vital role in fire prevention and protection. The fact prevails that any deadly conflagration starts with a very small spark/fire. If it is controlled/extinguished in its incipient stage break out of a big fire can be averted. In the light of above, GAIL, Pata has resolved to train each and every person working inside the plant on various aspects of fire & safety. Well equipped, training ground has been developed, as per guidelines of OISD, for live demonstration of various scenarios expected to arise with in the complex for training of plant & contract employees in addition to First Aid Fire Fighting.

DETAILS OF 6TH FURNACE – GAS CRACKER UNIT PROJECT INTRODUCTION Petrochemical complex at GAIL, Pata consists of Gas Processing Unit (GPU), Gas Cracker Unit (GCU), Polymer Plants with offsite facilities. Gas Cracker Unit comprises of the Hot Section (cracking furnace/ cracked gas compressor) and Cold Section (Ethylene Recovery Unit). The C2/C3 hydrocarbon is cracked and compressed in Hot Section and Ethylene, Propylene, C4 Mix and C5+ are separated in subsequent section. The waste heat from the Cracker Gas effluent is used to produce VHP steam which is subsequently used in the unit. Gas Cracker Unit mainly consists of the following units: 1. Furnace/ Quench Tower

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2. Cracked Gas Drying. 3. Dispersed Oil Extraction Process. 4. Demethanizer 5. Hydrogen Unit (PSA) 6. De-Ethanizer 7. C2 Hydrogenation 8. Ethylene Tower 9. Ethylene Product Distribution. 10. Debutanizer 11. Propylene Stripper 12. C4 Hydrogenation. Originally the Gas Cracker Plant had four gas cracker furnaces. In year 2005, an additional cracker furnace of capacity 1,00,000 TPA Ethylene (named herewith as 5th furnace) had been installed and hooked up with the existing furnaces to increase the capacity from 3,00,000 TPA to 4,00,000 TPA Ethylene. An additional furnace of capacity 1, 00,000 TPA Ethylene (named herewith as 6th furnace) and related equipments / pipings in Gas Cracker Unit shall be installed and hooked up to the existing furnaces to enhance GCU capacity (Brief Process description of Gas Cracker Unit is attached herewith) Brief Process Description of Gas Cracker Unit: Gas Cracker Unit is considered as the heart of GAIL, Pata and furnace is an important part of this unit. This unit is designed to produce 4, 00,000 TPA of Ethylene and about 12,000 TPA of Propylene. It is proposed to expand this unit to produce 5, 00,000 TPA Ethylene. The plant can be broadly divided into two sections viz. Hot Section and Cold Section. The Hot section comprises of feed vaporization, cracking furnaces, water quench, cracked gas compression, caustic wash and dehydrators. The Cold Section comprises of the Demethaniser and the downstream separation facilities. A brief description of the process is given below: HOT SECTION: 1. FEED VAPROISATION: C2/C3 is received from C2/C3 recovery unit/offsite at 00C and 22 Kg/cm2. It is flashed to around 10 Kg/cm2 whereby it gets cooled at (-) 260C. It is then first heated by propylene refrigerant and then by quench of water and LPG steam to around 800C. 2. CRACKER FURNACE: Dilution steam is mixed with C2/C3 vapor in the ratio 0.3:1 and fed to convection section of furnace. The dilution steam has two functions: (a) Reduce the hydrocarbon partial pressure thereby increasing ethylene yield. (b) Reduce the rate of coke formation thereby increasing the furnace run length. In the convection section of furnace, the feed gets heated to around 6500C by heat exchanged with flue gases. It is then fed to the radiant section where cracking of C2/C3 takes place. There are 05 furnaces each having capacity of 1, 00,000 TPA. 04 furnaces will be in operation while the 5th furnace will be in decoking mode or on standby. Each furnace has 24 “W” type radiant coils having total length of 44 m. The inside diameter of the four legs are 63.5 mm, 69.8 mm, 76.2 mm and 82.6 mm. The material of construction of the first two legs is 25 Cr/20 Ni and of the balance two legs is 25 CR/35 Ni. The temperature at the exit of radiant coil is around 8500C. The conversion per pass for ethane

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is around 65% by weight while that for propane is 93%. The hot gases are cooled to around 3500C by generating VHP steam in USX and TLX exchangers. It is further cooled to around 2500C in TLX-2 by heating boiler feed water. The radiant tubes gradually become coated with an internal layer of coke causing an increase in tube metal temperature and an increase in pressure drop through the radiant coils. From time to time, depending on the various operating parameters, decoking operation needs to be carried out. Decoking is generally done with steak air mixture. 3. QUENCH WATER AND DILUTION STEAM: The hot gases are then quenched and cooled to around 400C by direct contact with water in Quench Tower. Some light fuel oil (LFO) present in cracked gas gets condensed. This is separated from water in Oil-Water Separator and pumped to offsites. The steam which gets condensed in quench tower is pumped to Process Water Treatment Unit to remove impurities such as oil and suspended solids. The treated water is pumped to Dilution Steam Stripper where dilution steam is generated and used in the process. 4. CRACKED GAS COMRPESSION AND DEHYDRATION: The cooled cracked gas in compressed from 1.4 Kg/cm2a to around 26 Kg/cm2a in a 4 stage turbine driven compressor having rated power of around 18 MW. Inter Stage/ After Stage Coolers and Knock Out Drum are provided to cool the compressed gas and separate the condensed liquids (fuel oil). H2S and CO2 present in cracked gas are removed in Caustic Tower between 3rd and 4th stages of compression. The cracked gas after the 4th stage is cooled by cooling water and propylene refrigeration and then routed to Dehydrators where the moisture in cracked gas is reduced to < 1 ppmv. The dehydrators are provided. One dehydrator is in the drying mode and the other dehydrator is in regeneration/standby mode. The dehydrator has a cycle time of 48 hours. COLD SECTION: 5. DEMETHANISER: The dried gas is cooled in Demethaniser section to around (-) 1000C by different levels of propylene and ethylene refrigeration. It is further cooled to (-) 1350C by vapors from Expander compressor. The condensed liquids are fractionated in Demethaniser system. The C2+ liquids are sent to Deethaniser while the vapors (mainly CH4 and H2) are routed Expander where they are expanded from 21 Kg/cm2a to 4 Kg/cm2a in 3 stage machine. The vapors after giving cold in Demethaniser section/are compressed and routed to fuel gas system. 6. ETHYLENE RECOVERY: In Demethanizer, ethane/ethylene mixture gets separated from C3+. The ethane/ethylene mixture (top product from Deethaniser) is fed to C2 Hydrogenation section where acetylene is converted to ethylene/ethane by hydrogenation using palladium catalyst. The effluent from C2 hydrogenation is routed to Green Oil tower where green oil is removed by washing with cold ethylene. The overhead from Green Oil tower after passing through secondary dehydrator is fractionated in Ethylene Tower to separate ethylene and ethane. Ethylene tower has 116 trays and operates at a pressure of around 18 Kg/cm2a to produce ethylene product of 99.8 mol% purity. A part of the ethylene (5%) is cooled and sent to cryogenic storage. From the remaining 95% ethylene, cold is recovered before sending it to downstream consumers. The Ethylene Tower bottoms supplied the ethane recycled to the cracking furnaces.

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7. PROPYLENE RECOVERY The bottom of the Deethaniser is sent to Depropaniser where the propane/propylene are separated from C4+. The propane/propylene mixture from the top of the Depropaniser is fed to C3 Hydrogenation system where MAPD is converted to propylene/propane. The propane/propylene mixture is then fractionated in Propylene Stripper to give chemical grade propylene as top product and propane as bottom product. The propane is recycled back to furnace. 8. C4+ RECOVERY The bottom product from Depropaniser is routed to Debutaniser where C4 mix is obtained as top product and gasoline as bottom product. The gasoline product is cooled and mixed with wash oil/fuel oil from 2nd and 4th stage of CG compressor KO drums and routed to storage in the offsites area. 9. REFRIGERATION AND H2 RECOVERY The plant has a 4 stage propylene refrigeration and 4 stage ethylene refrigeration. Hydrogen required for hydrogenation is recovered from residue gas by PSA unit. The four levels of propylene are –40, -24, -6 and 7 deg. C. The propylene compressor is driven by extraction cum condensing turbine. The 4 levels of ethylene are –100, -84, - 68 and –48 deg. C. The compressor is driven by condensing turbine. 10. ETHYLENE STORAGE: Two types of ethylene storage are provided in the offsites are: (i) Refrigerated ethylene at – 98 deg. C available after ISBL chilling. (ii) Ethylene at –33 deg. C from ethylene fractioner 10% of the ethylene from the ethylene tower at –33 deg. C will be chilled to –98 deg. C in the Cracker itself. This ethylene will be stored in cryogenic storages at –103 deg. C. This temperature is achieved by partial flashing of the –98 deg. C ethylene from Cracker across flow control valve. Tow cryogenic tanks of nominal 8000 m3 capacity have been provided to store ethylene. The capacity works out equivalent 7.5 days based on 4,00,000 TPA ethylene plant capacity. 10% of the ethylene will be pumped from this storage through vaporizer to Cracker. When Cracker is shutdown, entire requirement of ethylene for downstream units will be met by these storages. Also if the demand from downstream units for ethylene is reduced, a maximum of 19.2 tph ethylene i.e. 1,52,000 TPA ethylene can be sent after chilling to cryogenic storage.

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DIBIYAPUR (9)

PHAPHUND(0)

GAIL, Pata.

(5)

BABARPUR (20) MURAD GANJ (14)

AURAIYA (16)AURAIYA (16)

GAIL HBJ TOWNSHIP (12)GAIL’s COMPR. STATION

UPPC NAGAR (7)

N.T.P.C. (8)

SENGAR RIVER

PHAPHUND

BY PASS

MANGALPUR CANAL

B U R A D H A N A C A N A L

NH -2TO ETAWAH (55)

TO KANPUR

(110)

SITE LOCATION – GAIL, PATA PETROCHEMICAL COMPLEXRAILWAY LINE

TO DELHI TO HOWRAH

NOT TO SCALEALL DISTANCES IN KM, SHOWN WITHIN BRACKET ARE FROM PHAPHUND

LATTITUTE : 26O 38’ NLONGITUDE : 79 O 39’ EELEVATION : 139.9 MTRSSEA LEVEL

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GAS CRACKER

CEMENT

GODOWN

YARD

FIRES.yard

D.W.TANK

SAFETYZONE

S.B.1

SPH

DM PLANT/SS1

GPU

AIR COM

TANKAGESPHERS

3

LLDPE

LLDPE/HDPEWAREHOUSE

HDPE

SPH

HYDROGENBULLETS

WWTP

ADM.

BUILDING

RAW

WATRES1

R.W.

RES2

CRANE AREA

LPG

LPG

• GAIL, PATA PLANT LAY OUT CONSTRUCTION

GATEMAIN GATE

POER PLANT BOILER

SB3COLING

T

SB4

WEIGH

BOARD

YARD 2

GAS

TERMINAL

C.WARE

HOUSE

SS-5

YA

RD

5Y

AR

D6

LAB

TECH

BLDG

SS12

C/R

SS3

IOP-CR

PROPANE

BULLETS

YARD4

FLARE

LPG

GATE

PRODUCT GATE

LPG LOADING ROOM

•NOT TO SCALE

SB2 SAFETY

ZONE

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SECTION 3

INSTRUCTIONS TO BIDDERS (ITB) / GENERAL TERMS ANDCONDITIONS

TABLE OF CONTENTS

A. General 1. Scope of Bid 2. Eligible Bidders 3. Bid Evaluation Criteria 4. Bids from Consortium / Joint Venture 5. One Bid per Bidder 6. Cost of Bidding 7. Site Visit

B. Bidding Documents

8. Content of Bidding Documents 9. Clarification of Bidding Documents 10. Amendment of Bidding Documents

C. Preparation of Bids

11. Language of Bid 12. Documents Comprising the Bid 13. Bid Prices 14. Bid Currencies 15. Bid Validity 16. Bid Security 17. Pre-Bid Meeting 18. Format and Signing of Bid

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19. Zero Deviation 20. E-Payment 21. Agent/Consultant/Representative/Retainer/Associate

D. Submission of Bids

22. Sealing and Marking of Bids 23. Deadline for Submission of Bids 24. Late Bids 25. Modification and Withdrawal of Bids

E. Bid Opening and Evaluation

26. Bid Opening 27. Process to be Confidential 28. Contacting the Employer 29. Examination of bids and Determination of Responsiveness 30. Correction of Errors 31. Conversion to Single Currency for Comparison of Bids 32. Evaluation and Comparison of Bids 33. Preference for Domestic bidders 34. Purchase Preference 35. Compensation for Extended Stay

F. Award of Contract

36. Award 37.Employer’s Right to Accept any bid and to Reject any or all Bids 38. Notification of Award 39. Signing of Agreement 40. Contract Performance Security 41. Corrupt or Fraudulent Practices

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SECTION-III

INSTRUCTIONS TO BIDDERS

A. General

1. Scope of Bid 1.1 The Employer (in this case GAIL (India) Ltd., a public limited company, incorporated under the company’s act 1956 and having its registered office at 16, Bhikaji cama place, New Delhi 110066 and includes its successors and assigns), hereinafter “the Employer”, wishes to receive bids for the Insurance package as described in the tender document, hereinafter referred to as “the Works/Services.” i.e. “MARINE CUM ERECTION ALL RISK

INSURANCE POLICY FOR 6TH FURNACE – GAS CRACKER UNIT PROJECT AT GAIL, PATA”.

1.2 Throughout these bidding documents, the terms “bid” and “tender” and their derivatives (“bidder/ tenderer”, “bid/ tendered”, “bidding/ tendering”, etc.) are synonymous, and day means calendar day. Singular also means plural.

2. Eligible Bidders: 2.1 This invitation for bid is open to any domestic bidder.

2.2 A bidder shall not be affiliated with a firm or entity (i) that has provided consulting services related to the

Works to the Employer during the preparatory stages of the Works or of the Project of which the Works form a part, or

(ii) that has been hired (or is proposed to be hired) by the Employer as Engineer/ Consultant for the contract.

2.3 The bidder shall not be under a declaration of ineligibility by Employer for corrupt or fraudulent practices as defined in ITB.

2.4 The bidder is not put on holiday by GAIL or black listed by any Government Department / Public Sector.

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3. Bid Evaluation Criteria

3.1 BID EVALUATION CRITERIA: 3.1.1 The bidder should have executed at least one Marine cum Erection (MCE) All Risk Insurance Policy for Sum Insured in excess of Rs. 43.50 crores as SOLE / LEAD INSURER in any Public Sector/Private Sector Company in any of the last 5 years reckoned from the scheduled last date of submission of bid (A job executed by a bidder for its own concern shall not be considered as experience for the purpose of meeting BEC), 3.1.2 The bidder should be registered Indian Insurer in accordance with the Insurance Act and approved by IRDA (Insurance Regulatory & Development Authority) as Non-Life Insurer and should have a license to carry out Insurance Business in India under non-life insurance sector.

Bidder should furnish documentary evidence / supporting Papers (copies of Policy clearly indicating sum insured for the risk covered & copy of License/Registration, etc.) duly notarized by Notary Public / Gazetted Officer to substantiate their eligibility against the above bid evaluation criteria along with the bid. In the absence of such requisite documents, GAIL reserves the right to reject the bid without any reference to the bidder. 4 Bids from Not applicable

Joint Venture / Consortium

5. One Bid per A firm shall submit only one bid in the same bidding process. A Bidder bidder who participates in more than one bid will cause all the proposals

in which the bidder participated to be disqualified.

6. Cost of The bidder shall bear all costs associated with the preparation and Bidding submission of the bid, and GAIL will in no case be responsible or liable for

these costs, regardless of the conduct or outcome of the bidding process.

7. Site Visit 7.1 The bidder is advised to visit and examine the Site of Works and its surroundings and obtain for itself on its own responsibility all

information that may be necessary for preparing the bid and entering into a contract. The costs of visiting the Site shall be at the bidder’s own expense.

7.2 The bidder and any of its personnel or agents will be granted

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permission by the Employer to enter upon its premises and lands for the purpose of such visit, but only upon the express condition that the bidder, its personnel, and agents will release and indemnify the Employer and its personnel and agents from and against all liability in respect thereof, and will be responsible for death or personal injury, loss of or damage to property, and any other loss, damage, costs, and expenses incurred as a result of the inspection.

<

B. Bidding Documents

8. Content of 8.1 The Bidding Documents/Tender Documents are those stated

Bidding below and should be read in conjunction with any addenda Document issued in accordance with ITB Clause 10.

Section I Invitation for Bids (IFB)

Section II Introduction and Overview of GAIL/GAIL PATA & 6TH Furnace GCU Project

Section III. Instructions to Bidders (ITB) / Tender conditions Section IV Special Conditions of Contract Section V Scope of Insurance Cover Section VI Schedule of Rates

8.2 The bidder is expected to examine all instructions, forms,

terms and specifications in the bidding documents.

The Invitation for Bids (IFB) together with all its attachments thereto, shall be considered to be read, understood and accepted by the bidders. Failure to furnish all information

required by the bidding documents or submission of a bid not substantially responsive to the bidding documents in every respect will be at bidder’s risk and may result in the rejection of his bid.

9. Clarification A prospective bidder requiring any clarification(s) of the

of Bidding Bidding Documents may notify GAIL in writing or by fax or Documents e-mail at GAIL’s mailing address indicated in the Invitation for Bids prior to the pre-bid meeting . GAIL may, if deem appropriate, respond in writing to the request for clarification. Written copies of GAIL’s response (including an explanation of the query but without identifying the source of the query)

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will be sent to all prospective bidders who have received the bidding documents. Any Clarification or information required by the bidder but same not received by the Employer, prior to the pre-bid date, the same is liable to be considered as no Clarification/information required. 10. Amendment

10.1 At any time prior to the bid due date, GAIL may, for any of Bidding reason, whether at its own initiative or in response to a Documents clarification requested by a prospective bidder, modify the bidding documents.

10.2 The amendment will be notified in writing or by fax or e-mail to all prospective bidders, at the address, fax numbers, e-mail id provided by the bidder, who have received the Bidding Documents and also through e-portal and will be binding on them 10.3 In order to afford prospective bidders, reasonable time in which to take the amendment into account in preparing their bids, GAIL may, at its discretion, extend the bid due date.

C. Preparation of Bids

11. Language of 11.1 The bid prepared by the bidder and all Bid correspondence/drawings and documents relating to the

bid exchanged by bidder and GAIL shall be written in English language. Any printed literature furnished by the bidder may be written in another language so long as accompanied by an ENGLISH translation duly authenticated by the chamber of commerce of Bidders country, in which case, for the purpose of interpretation of the bid, the ENGLISH translation shall govern. Metric measurement system shall be applied.

12. Documents 12.1 The bid prepared by the bidder shall comprise the Comprising the Bid following components:

Part-I: Techno-commercial /Un-priced Bid shall contain the following:

i) Bidder’s general details/information as per

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format F-1. ii) A Bid Form as per format F-2. iii) Copies of documents as required in F-3 iv) A confirmation that prices in requisite formats, strictly complying with the requirement, are in Part – II of bid document i.e. “Price Bid”. v) One set of Stamped and signed tender

document vi) Letter of authority in favour of any one or two

of bidder’s executives having authority to attend the unpriced and price bid opening on specified dates and venue as per format F-4.

vii) Confirmation of no deviation as per Format F-5.

viii) Certificate as per form F-6 and Brief Summary of Agreed Terms and Conditions as per form F-7. ix) Bidder’s declaration that they are not under

liquidation, court receivership or similar proceedings. x) Affidavit on Non Judicial Stamp Paper (as per form F- 8) xi) Affidavit/Undertaking on Non Judicial Stamp paper of Rs. 100/- in case tender has been downloaded from Website (as per Form F-9)

xii) Any other information/details required as per bid document.

xiii) Copy of Schedule of Rates (SOR) which will be left blank). Note: All pages of the bid to be signed and sealed by authorized person of the bidder.

12.3 Part II “Price Bid

Price Bid Part-II shall contain Schedule of Rates duly filled in.

13. Bid Prices

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13.1 Unless stated otherwise in the Bidding Documents, the Contract shall be for the whole works as described in Bidding Document, based on the unit rates and prices submitted by the Bidder and accepted by the EMPLOYER. Bid for part scope shall be rejected.

13.2 Prices must be filled in format for ‘Schedule of Rates’ enclosed as part of Bidding Document. If quoted in separate typed sheets and any variation in item description, unit or quantity is noticed; the bid is liable to be rejected. 13.3 Bidder shall quote for all the items of Schedule of Rates after careful analysis of cost involved for the performance of the completed item considering all parts of the Bidding Document. In case any activity though specifically not covered in description of item under ‘Schedule of Rates’ but is required to complete the works as per Scope of coverage, Special Condition of Contract or any other part of Bidding Document, the prices quoted shall deemed to be inclusive of cost incurred for such activity. Items against which no rate or price is entered by the bidder will not be paid for by the Employer when executed and shall be deemed covered by the rates for other items and prices in the SOR. 13.4 All duties, taxes and other levies payable by the Contractor under the Contract, or for any other cause, shall be included in the rates and prices and the total bid price submitted by the bidder. 13.5 Prices quoted by the bidder, shall remain firm and fixed and valid until completion of the Contract and will not be subject to variation on any account. 13.6 The Bidder shall quote the prices both in figures as well as in words. There should not be any discrepancies between the price indicated in figures and the price indicated in words. 13.7 Alternative bids shall not be considered. 14. Bid Currencies 14.1 Bidders have to submit bid in Indian Rupees Only. 15. Bid Validity 15.1 Bids shall be kept valid for 4 months from the final bid due date. A bid valid for a shorter period may be rejected by GAIL as non-responsive.

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15.2 In exceptional circumstances, the Employer may request that the bidders extend the period of validity for a specified additional period. The request and the responses thereto shall be made in writing or by fax / e-mail. A bidder may refuse the request without forfeiture of his bid security. A bidder agreeing to the request will not be required or permitted to modify his bid, but will be required to extend the validity of its bid security for the period of the extension and in accordance with Clause 16 in all respects. 16. Bid Security - Not Applicable

17. Pre-Bid As mentioned in the Letter inviting tender/Invitation for Bid.

Meeting

18. Format and 18.1 The original and all copies of the bid shall be typed or Signing of Bid written in indelible ink (in the case of copies,

photocopies are also acceptable) and shall be signed by a person or persons duly authorized to sign on behalf of the bidder. The name and position held by each person signing, must be typed or printed below the signature. All pages of the bid except for unamended printed literature where entries or amendments have been made shall be initialled by the person or persons signing the bid.

18.2 The bid shall contain no alterations, omissions, or additions, unless such corrections are initialed by the person or persons signing the bid.

19. Zero Deviation 19.1 Bidders to note that this is a zero deviation tender. GAIL will appreciate submission of offer based on the terms and conditions in the enclosed, Special Conditions of Contract (SCC), Instructions to Bidders (ITB), Scope of coverage etc. to avoid wastage of time and money in seeking clarifications on technical/ commercial aspects of the offer. Bidder may note that GAIL may not seek technical & commercial clarifications after the receipt of the bids.

20. E-Payment 20.1 GAIL (India) Limited has initiated payments to suppliers and contractors electronically and to facilitate the payments electronically, the bidder should have an

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account with HDFC Bank or ICICI Bank or State Bank of India so that the payment through e-banking be made to the bidder, in case work is awarded to him. Please note that payment , if order is awarded, shall be released through e-banking only. Further, the bidder should give the details of his bank account alongwith the Techno-

Commercial (Un Priced) bid in any one of the above banks duly certified by their banker to paying authority in advance to facilitate payment through e-banking in case of award of work on him as per format enclosed (as

per Exhibit I (a)/(b).

21. Agent/

Not Applicable . consultant/

Representative/

Retainer/

Associate

D. Submission of Bids 23. Deadline for 23.1 Bids must be submitted physically under two bid system i.e. Submission of Bids Un priced Bid/Technical Bid (Part I) and Priced Bid (Part II) in separate sealed envelope not later than the date and time stipulated in the Invitation for Bids (IFB) at the following address: Central Receipt Section, Security Main Gate, GAIL (India) Ltd., P.O. – PATA, Distt. Auraiya (U.P.) – 206241 Further a cut out address slip to be pasted on the envelope is enclosed. 23.2 GAIL may, in exceptional circumstances and at its discretion, on giving reasonable notice by fax or any written communication to all prospective bidders who have been issued the bid documents, extend the deadline for submission of bids, in which case all rights and obligations of GAIL and the bidders, previously subject to the original deadline will thereafter be subject to the deadline as extended. 24. Late Bids Not Applicable 25. Modification 25.1 The bidder may modify or withdraw his bid after the submission and Withdrawal of bid but before the due date and time for submission, provided that of Bids written notice of the modification/withdrawal is received by GAIL prior

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to the deadline for submission of bids. 25.2 No bid shall be modified after the deadline for submission of bids. 25.3 No bid shall be allowed to be withdrawn in the interval between the deadline for submission of bids and the expiration of the period of bid validity specified by the bidder on the Bid Form. Withdrawal of a bid during this interval shall result in the bidder’s forfeiture of his bid security pursuant to Sub-Clause 16.7.

E. Bid Opening and Evaluation

26. Bid Opening 26.1 Unpriced Bid Opening:

GAIL will open bids, including withdrawals and modifications made pursuant to Clause 25, in the presence of bidders’ designated representatives who choose to attend, at date, time and location stipulated in the IFB. The bidders’ representatives, who are present, shall sign a bid opening register evidencing their attendance.

26.2 Priced Bid Opening:

26.2.1GAIL will open the price bids of those bidders who meet the qualification requirement and whose bids is determined to be technically and commercially responsive. Bidders selected for opening of their price bids shall be informed about the date of price bid opening. Bidders may depute their authorized representative to attend the opening. The bidders’ representatives, who are present, shall sign a register evidencing their attendance.

27. Process to be 27.1 Information relating to the examination, Confidential clarification, evaluation, and comparison of bids, and recommendations for the award of a contract, shall not be disclosed to bidders or any other persons officially concerned with such process. Any effort by a bidder to influence the Employer’s processing of bids or award decisions may result in the rejection of the

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bidder’s bid. 28. Contacting the 28.1 From the time of bid opening to the time of

Employer contract award, if any bidder wishes to contact the Employer on any matter related to the bid, it should do so in writing.

28.2 Any effort by the bidder to influence the Employer in the Employer’s bid evaluation, bid comparison, or Contract award decisions may result in the rejection of the bidder’s bid.

29. Examination of 29.1 Prior to the detailed evaluation of bids, the Bids & Determination Employer will determine whether each bid (a) has of Responsiveness been properly signed; (b) is accompanied by the required securities; (c) is substantially responsive to the requirements of the bidding documents; and

(d) provides any clarification and/or substantiation that the Employer may require to determine words and in figures, the amount in words will govern; and responsiveness pursuant to sub-clause 29.2.

29.2 A substantially responsive bid is one which conforms to

all the terms, conditions and scopes of the bidding documents without deviations or reservations. A

deviation or reservation is one (a) that affects in any substantial way The scope

quality, or performance of the Works; (b) that limits in any substantial way, inconsistent with the bidding documents, the Employer’s rights or the bidder’s obligations under the contract; or

(c) whose rectification would affect unfairly the competitive position of other bidders presenting

substantially responsive bids.

29.3 Bidders bid shall be considered non-responsive and

rejected, if deviations are taken to the under mentioned provisions of the bid documents by the bidder:

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(i) Bidders not meeting BEC of the Tender (ii) Non acceptance of Scope of coverage including

Coverage period & Special Conditions of Contract (iii) Non submission of prices as per Price Schedule (iv) Period of Validity of bids as per clause no. 15.0 of

Instructions to Bidders (ITB) (v) Non submission of Certificate from officer not below

the level of General Manager / Officer just below the level of Director (Board member) for compliance of IRDA Rules & Tariff.

(vi) Non submission of Certificate of Authorization to deal with GAIL, Pata from Head Office of participating Insurance Co.

(vii) Non submission of Firm & Fixed Price (viii) Price submitted in Un priced bid

(ix) Non quotation by bidders for all the Policies separately as per Price schedule

(x) Any other condition specifically mentioned in the tender document elsewhere that non-compliance of

the clause lead to rejection of the bid.

30. Correction of 30.1 Bids determined to be substantially responsive will be

Errors checked by the Employer for any arithmetic errors. Errors will be corrected by the Employer as follows :

(a) where there is a discrepancy between the amounts in words and figures, the amount in words will govern; and

(b) Where there is a discrepancy between the unit

rate and the total resulting from multiplying the unit rate by the quantity, the unit rate as quoted will govern.

30.2 The amount stated in the bid will be adjusted by the Employer in accordance with the above procedure for the correction of errors and, with the concurrence of the bidder, shall be considered as binding upon the bidder. If the bidder does not accept the corrected amount of bid, its bid will be rejected, and the bid security shall be forfeited.

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31. Conversion to Single Currency for Comparison of Bids: Not applicable 32. Evaluation and Comparison of Bids : Mentioned in the Special Conditions of Contract. 33. Preference for Domestic Bidders : Not applicable 34. Purchase Preference: Not Applicable. 35. Compensation for extended stay: Not applicable

F. Award of Contract

36. Award Subject to Clause 29, GAIL will award the contract to the successful bidder whose bid has been determined to be substantially responsive and has been determined as the lowest, is determined to be qualified to satisfactorily perform the contract. 37. Employer’s Right to Accept Any Bid and to Reject Any or All Bids: GAIL reserves the right to accept or reject any bid, and to annul the bidding process and reject all bids, at any time prior to award of contract, without thereby incurring any liability to the affected bidder or bidders or any obligations to inform the affected bidder or bidders of the ground for GAIL’S ACTION.

38. Notification of Award 38.1 Prior to the expiration of period of bid validity GAIL will notify the successful bidder in writing by fax, cable or telex to be confirmed in writing, that his bid has been accepted. The notification of award / Fax of Intent will constitute the formation of the Contract. 38.2 Completion period shall be counted from the date of notification of award / Fax of Intent. The notification of award will constitute the formation of a Contract, until the Contract has been effected pursuant to signing of Contract as per Clause 39 of ITB. Upon the successful bidder’s furnishing of contract performance security, pursuant to Clause 40 of ITB, GAIL will promptly notify each unsuccessful bidder and will discharge his bid security, pursuant to Clause 16 of ITB. 39. Signing of Agreement: GAIL will award the Contract to the successful bidder, who, within 15 days of receipt of the same, shall sign and return the acceptance copy to GAIL. 40. Contract Performance Security: Not applicable 41. Corrupt or Fraudulent Practices 41.1 GAIL requires that bidders/contractors observe the highest standard of ethics during the execution of contracts. In pursuance of this policy, the Employer:

a) defines, for the purposes of this provision, the terms set forth below as follows :

i) “corrupt practice” means the offering, giving

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or soliciting of anything of value to influence the action of a public official in the procurement process or in contract execution;

and ii) “fraudulent practice” means a

misrepresentation of facts in order to influence a procurement process or the execution of a

contract to the detriment of the Employer, and iii) includes collusive practice among bidders

(prior to or after bid submission) designed to establish bid prices at artificial noncompetitive levels and to deprive the Employer of the benefits of free and open

competition; b) will reject a proposal for award if it determines

that the bidder recommended for award has engaged in corrupt or fraudulent practices in competing for the contract in question;

c) will declare a firm ineligible and put on holiday, either indefinitely or a for a stated period of time if it at any time determines that the firm has engaged in corrupt or fraudulent practices in competing for, or in executing a contract.

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FORMS AND FORMATS

F-1 BIDDER’S GENERAL INFORMATION

To GAIL (India) Limited,

1-1 Bidder Name: 1-2 Number of Years in Operation: ____________________________________ 1-3 Registered Address:

1-4 Operation Address if different from above: ___________________________________________

___________________________________________

1-5 Telephone Number ________________________________________ (Country Code) (Area Code) (Telephone Number)

1-6 E-mail address & Web Site ________________________________

1-7 Telefax Number ____________________________________________

(Country Code) (Area Code) (Telephone Number) 1-8 ISO Certification, if any {If yes, please furnish details}

(SIGNATURE OF BIDDER WITH SEAL)

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F-2 BID FORM

To

GAIL (India) Limited,

Dear Sir,

After examining/reviewing the Bidding Documents for Insurance cover, including technical specifications, General and Special Conditions and schedule of rates etc. the receipt of which is hereby duly acknowledged, we, the undersigned, pleased to offer to execute the whole of the Job of Insurance cover against various perils and in conformity with, the said Bid Documents, including Addenda Nos. ____________.

We confirm that this bid is valid for a period of four (4) months from the date of opening of Techno-Commercial Bid, and it shall remain binding upon us and may be accepted by any time before the expiration of that period.

Until a final Agreement is prepared and executed, the bid together with your written acceptance thereof in your notification of award shall constitute a binding Agreement between us.

We understand that Bid Document is not exhaustive and any action and activity not mentioned in Bid Documents but may be inferred to be included to meet the intend of the Bid Documents shall be deemed to be mentioned in Bid Documents unless otherwise specifically excluded and we confirm to perform for fulfilment of Agreement and completeness of the Work in all respects within the time frame and agreed price.

We understand that you are not bound to accept the lowest priced or any bid that you may receive.

SEAL AND SIGNATURE

DATE:

Duly authorized to sign bid for and on behalf of

(SIGNATURE OF WITNESS)

WITNESS NAME:

ADDRESS:

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F-3

LIST OF ENCLOSURES

GAIL (India) Limited,

Dear Sir,

We are enclosing the following documents as part of the bid:

1. Copy of Bidding Documents along with addendum/corrigendum no (if any) duly signed and sealed on each page, in token of confirmation that Bid Documents are considered in full while preparing the bid and in case of award, work will be executed in accordance with the provisions detailed in Bid Documents. 2. Notarized copies of Documentary proof towards the Bid Evaluation Criteria specified in Article no. 3 of Instructions to Bidders (Section – 3 of tender document). 3. Any other documents specifically sought for elsewhere in the bidding document.

(SEAL AND SIGNATURE OF BIDDER)

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F-4

LETTER OF AUTHORITY

PROFORMA FOR LETTER OF AUTHORITY FOR ATTENDING AND SUBSEQUENT NEGOTIATIONS/CONFERENCES

No. Date:

GAIL India Limited,

Dear Sir,

We _____________________________________ hereby authorize following representative(s) to attend un-priced bid opening and price bid opening and for any other correspondence and communication against above Bidding Document:

1) Name & Designation ___________________ Signature _____________

2) Name & Designation ___________________ Signature ____________

We confirm that we shall be bound by all commitments made by aforementioned authorized representatives.

Yours faithfully,

Signature

Name & Designation

For and on behalf of

Note: This letter of authority should be on the letterhead of the bidder and should be signed by a person competent and having the power of attorney to bind the bidder. Not more than two persons are permitted to attend Pre-bid meeting, techno –commercial un-priced and price bid opening.

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F-5

NO DEVIATION CONFIRMATION

GAIL India Limited,

Dear Sir,

We understand that any deviation/exception in any form in Tender No. ……………………….. may result in rejection of bid. We, therefore, certify that we have not taken any exceptions/deviations anywhere in the bid and we agree that if any deviation/exception is mentioned or noticed, our bid may be rejected.

(SEAL AND SIGNATURE OF BIDDER)

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F-6

CERTIFICATE

GAIL India Limited,

Dear Sir, If we become a successful bidder and pursuant to the provisions of the Bidding Documents award is given to us, the following certificate shall be automatically enforceable:

“We agree and acknowledge that the Employer is entering into the Agreement

solely on its own behalf and not on behalf of any other person or entity. In

particular, it is expressly understood and agreed that the Government of India

is not a party to the Agreement and has no liabilities, obligations or rights

there under. It is expressly understood and agreed that the Employer is

authorised to enter into Agreement, solely on its own behalf under the

applicable laws of India. We expressly agree, acknowledge and understand

that the Employer is not an agent, representative or delegate of the

Government of India. It is further understood and agreed that the Government

of India is not and shall not be liable for any acts, omissions, commissions,

breaches or other wrongs arising out of the Agreement. Accordingly, we

hereby expressly waive, release and forego any and all actions or claims,

including cross claims, VIP claims or counter claims against the Government

of India arising out of the Agreement and covenants not to sue to Government

of India as to any manner, claim, cause of action or things whatsoever arising

of or under the Agreement.”

Seal and Signature of Bidder

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F-7

BRIEF SUMMARY OF AGREED TERMS AND CONDITIONS

Bidder’s Name M/s ............................. Bid Document No................................ Offer Ref................................

This Questionnaire duly filled in should be returned along with each copy of Unpriced Bid. Clauses confirmed hereunder should not be repeated in the Bid.

S. No. Description Bidder's Confirmation

1) It is noted that deviations to Terms & Conditions shall lead to rejection of offer, as specified in the Bid Document. 2) Ensure and confirm that prices quoted in ‘Schedule of Rates’, are for complete scope of work as defined in the Bid document. 3) Ensure & confirm that quoted prices are inclusive of all taxes, duties, levies etc. as applicable under this contract including all costs towards carrying out any surveys, travel to India, site visits by it’s personnel, stay in India, boarding, lodging, incidental expenses etc. required for Project work. 4) Confirm that the offer shall remain valid for acceptance up to 4 months from Final Bid Due Date/Date of Opening of Bids.

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5) Bidder’s name and address 6) Confirm that premium prices shall remain firm till completion of insurance coverage period. 7) Confirm acceptance of Insurance coverage period as per requirement Specified in Bid Document (to be reckoned from date of Fax of Intent) 8) Confirm acceptance of relevant Terms of Payment as specified in the Bid Document. [Payment terms indicated in Bid Document do not provide for any advance payment to be made to the bidder(s)]. 9) Confirm acceptance in toto of

the Terms & Conditions contained in-

i) Instructions to Bidders/General Conditions of Contract (Section-3)

ii) Scope of Insurance cover (Section -5) iii) Special Conditions of Contract (Section-4) iv) All other commercial documents/ attachments of Bid Document.

10) All the terms & conditions have been indicated in this format (including annexure, if any) and have not been repeated in the bid elsewhere. It is noted that Terms & Conditions indicated elsewhere including any printed Terms &

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Conditions, shall not be considered by Owner.

11) The bidder is required to

state whether any of the Directors of bidder is not a relative of any Director of Owner or the Bidder is a firm in which any Director of Owner or his relative is a partner or the Bidder is a private company in which any Director of Owner is a member or Director.

12) All correspondence must be in English Language only.

13) Indicate Name & Contact No. (Telephone/Fax No.) of person(s) to whom queries, if any, are to be addressed against your bid.

14) Owner reserves the right to make any change in the terms & conditions of the Bid Document and to reject any or all bids including those received late or incomplete.

15) Confirm that all Bank charges associated with Bidder’s Bank shall be borne by Bidder.

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BIDDER CONFIRMS THAT IN CASE OF CONFLICTING VERSION OF VARIOUS TERMS & CONDITIONS AT DIFFERENT PLACES, THE CONFIRMATION FURNISHED AS ABOVE SHALL BE CONSIDERED OVER-RIDING AND FINAL AND ANY OTHER DEVIATION INDICATED ELSEWHERE SHALL BE TREATED AS REDUNDANT.

Signature______________________ Name ________________________ Designation_____________________ Office Stamp Tel No. ________________________

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F-8

AFFIDAVIT ON NON-JUDICIAL STAMP PAPER

The bidder shall submit an Affidavit on non –judicial stamp paper of Rs. 100/- duly Notarized by Notary Public as follows: “The documents submitted by M/s ……………………………. (name & address of the bidder) against tender no……………. dated ………… are true and genuine and in case of any discrepancy noticed or observed at any stage, M/s …………………………….. (name & address of the bidder) shall be personally responsible not only for the damages or loss to GAIL, but also for criminal proceedings under the relevant laws”.

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Format F-9

Affidavit/Undertaking

If the bidder is quoting by downloading the tender from website, the bidder is required to submit an undertaking on non-judicial stamp paper of Rs. 100/- duly notarized stating the following: “The contents of the tender documents against tender no……. dt…. for ………………. (Name of job) have not been modified or altered by M/s ………………. (name of bidder with complete address). In case, it is found that the tender document has been modified/altered by the bidder, the bid submitted by M/s ……………… (name of bidder) shall be liable for rejection.”

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Exhibit I (A) FORMAT APPLICABLE FOR PARTIES WILLING TO RECEIVE EPAYMENTS IN

THEIR ACCOUNT WITH SBI/HDFC/ICICI BANK ONLY)

(This declaration should be on letter head of the organization mentioning E-mail ID/Fax No. of the contact person) To, The General Manager (F&A) GAIL (India) Ltd. P.O. Pata Auraiya, U.P. -206241 Subject : Consent for receiving Payments through Electronic Mode Dear Sir, This is to confirm that we M/s ……………………………………………………. (Name of the Organization) are having Savings / Current Account No. ………………………. with ………………………………………… (Name of the Bank) …………….…………….. (Branch Name) …………… (Branch Code), to which payments, if any due to us, can be released electronically. Thanking You. for……………………………………….. Authorized Signatory (ies) (Name of the Authorised Signatory with Seal) CERTIFICATE BY BANK This is to certify that Savings / Current A/c. No……………………… is maintained by M/s………………………..……………………….……………………… (Name of the organization) with our bank ………….………………………………………….……… (Name of the Bank and Branch) having code no ……………….(Branch Code), to which payments can be released electronically. (Signature with Seal of Bank) Branch Manager

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EXHIBIT I (B)

PARTICULARS OF VENDORS REQUIRED FOR THE PURPOSE OF MAKING PAYMENT THROUGH E-BANKING (BIDDERS NOT HAVING ACCOUNT IN

SBI/HDFC/ICICI BANK)

(PLEASE ATTACH ONE CANCELLED CHEQUE W.R.T. EVERY VENDOR)

1. VENDOR/CUSTOMER NAME : ………..…………………………………………………..

2. COMPLETE ADDRESS : ………………………………………………………..

3. BANK’S NAME : ………………………………………………………..

4. BENEFICIARY A/C NO. .: ………………………………………………………..

5. ACCOUNT TYPE : ………………………………………………………..

6. BRANCH NAME : ………………………………………………………..

7. BANK ADDRESS : ………………………………………………………..

8. MICR CODE : ………………………………………………………..

9. BRANCH CODE : ………………………………………………………..

10. DETAILS OF CANCELLED CHEQUE: …………………….……………………...

AUTHORIZED SIGNATORY WITH NAME AND SEAL

(The above information are required to be submitted by the vendors on their LETTERHEAD, DULY certified by their banker)

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SECTION - 4

SPECIAL CONDITIONS OF CONTRACT (SCC)

GENERAL: The Special Conditions of Contract shall be read in conjunction with the General Terms & Conditions of Contract, Schedule of rates, specifications, and any other documents forming part of contract, wherever the context so requires. Notwithstanding the sub-division of the documents into these separate sections and volumes, every part of each shall be deemed to be supplementary to and complementary of every other part and shall be read with and into the CONTRACT so far as it may be practicable to do so. Where any portion of the General Terms & Conditions of Contract is repugnant to or at variance with any provisions of the Special Conditions of Contract, unless a different intention appears, the provisions of the Special Conditions of Contract shall be deemed to over-ride the provisions of the General Terms & Conditions of Contract and shall to the extent of such repugnancy, or variations, prevail. Wherever it is mentioned in the specifications that the CONTRACTOR shall perform certain WORK or provide certain facilities, it is understood that the CONTRACTOR shall do so at his cost and the VALUE OF CONTRACT shall be deemed to have included cost of such performance and provisions, so mentioned. EVALUATION OF BIDS: 1. Evaluation of bid shall be done on following basis:- a) Evaluation of the techno-commercial bid will be done first. b) Only the bids that are meeting the Bid Evaluation Criteria and substantially responsive to the Bid conditions would become eligible for the opening of the priced bids. c) Bidders who has quoted lowest premium amount (on overall basis) shall be considered lowest bidder (L-1) and policy shall be awarded to L-1 bidder. d) In case of tie in the quoted premium, the bidder having higher net worth in the Financial Year 2008-09 shall be declared lowest (L-1) between/among them. 2. OTHER CONDITIONS a) The entire scope of coverage as specified in the Bidding Document shall be treated as Insurance Contract. b) The bidder shall quote total premium against respective areas of coverage for respective sum insured as per format of price Schedule. The total premium will be inclusive of all expenditures to be incurred by the bidders and applicable taxes, duties, service tax and surcharge etc. and no expenditure other than those quoted in the SOR will be paid by GAIL on any account for the defined scope of coverage.

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c) All premiums to be quoted by the bidders will be in Indian Rupees only on firm price basis and shall remain valid during the currency of the policy. d. Insurers are free to carry out inspections at site at their cost and risk, if so desired for this purpose. They may examine the site and its surroundings and obtain all information that may be necessary for preparing the bid .GAIL should be informed of such intention of insurers so that plant level arrangements are done for their visit to the various sites. 3. ADDITIONAL ATTACHMENTS Following additional documents are required to be attached necessarily with the un priced bid of tender document on their letter head in addition to forms attached in General conditions of the contract :- a) Letter of confirmation by bidder regarding compliance of guidelines, circulars and amendments thereof issued by IRDA from time to time (as per Annexure – I). b) Certificate from the head office of the respective insurance companies to deal with GAIL and also to give the quotation as per Annexure II. c) Documentary Evidence in support of meeting Techno Commercial Criteria applicable as per Bid Evaluation Criteria. THE UNCONDITIONAL COMPLIANCE TO THE ABOVE WOULD BE A PREREQUISITE FOR OPENING OF PRICE BID. SUBJECTIVE/PART COMPLIANCE SHALL BE LIABLE FOR REJECTION OF THE BID. THE ABOVE SHALL BE SUBMITTED IN ADDITION TO THE DOCUMENTS/CONFIRMATIONS SOUGHT ELSEWHERE IN THE TENDER DOCUMENT. 4. INSURANCE PREMIUM i) The Insurance premium payable is as per the Price Schedule and is inclusive of all taxes & duties. The premium amount shall remain firm during the Insurance period of the policy. ii) The total premium amount shall be paid by GAIL, Pata and the Insurance Company shall provide premium bills in the form of Cenvatable Invoice based on the sum insured for each SOR to avail the cenvat credit of service tax by GAIL’s. 5. RESPONSIBILITY OF INSURER The following terms and conditions shall have the meaning hereby assigned to them except where the context otherwise requires. i) The bidders are required to quote the premium rates strictly as per IRDA tariff provisions and violation/breach of IRDA tariff provisions will not be accepted. In case of any violation of the IRDA tariff provisions by the insurance company, in the quotation, GAIL will not be liable for any differential premium in any case. Also there will be no effect on the settlement of the claims.

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ii) The terms & conditions of cover and the wordings of the policies, warranties and clauses should be strictly inline with IRDA provisions & draft policy issued by IRDA time to time. iii) The rates quoted should be with minimum excess as stipulated in the IRDA tariff. The details with respect to the quantum of the minimum excess should be mentioned in the priced bid. iv) Bidders are required to quote for entire scope. v) However the responsibility for obtaining consent from co-insurer companies rests with lead insurer and lead insurer shall bear 100% responsibility for settlement of claim from commencement of policy till expiry of policy. vi) The insurer shall be solely and legally responsible to GAIL for effective execution of the policy including co-ordination, collection of premium, issue of policy document, settlement of claim, refund of premium on prorate basis if any etc.

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ANNEXURE - I

GAIL (INDIA) Ltd., Pata.

It is hereby certified that the quotations given by us against tender no…………. dt……….are as per IRDA provisions and that there is no violation of the IRDA provisions whatsoever. In case of any violation of the tariff provisions by the insurance company, in the quotation, GAIL would not be liable for any differential premium in any case. Also there would be no effect on the settlement of the claims. However, in case there is any downward movement of the tariff provisions, which are applicable to GAIL, the insurance company would ensure that the same is passed on to GAIL.

On Behalf of the Insurer

Authorised Signatory

Place & Date (Not below the Rank of General Manager/ Officer just below the Level of Director)

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ANNEXURE - II CERTIFICATE REGARDING AUTHORISATION BY HEAD OFFICE TO DEAL WITH GAIL INDIA LIMITED

We hereby authorize Mr. (Name and designation) and Mr. (Name and Designation) posted at the Divisional office (address of the office) to deal with GAIL (India) Limited for the complete insurance portfolio. He / She is authorized to sign the quotations, tenders and deal with GAIL as well as correspond with GAIL on behalf of M/s………………………….. (Name of the Insurance Company)

Signed and stamped

General Manager /Officer just below the Level of Director

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SECTION - 5

SCOPE OF INSURANCE COVER

A: PERIOD OF COVER:

With effect from 01.01.2010 or such later date as may be specified for period of 12 months.

B. TESTING & COMMISSIONING PERIOD:

1.50 month Testing & Commissioning period included in total Project Period of 12 months.

C. Other Details

i) SUM INSURED: Rs. 86.864 crores including the addon covers (for breakup refer SOR) ii) Limit per Transit: Rs. 4.12 crores for Imports including duties etc & Rs. 2.50 crores for Indigenous Material incl. of duties & freight. (iii) Minimum Excess: The rates quoted should be with standard minimum excess as stipulated in the tariffs. The details w.r.t. to the quantum of the minimum excess should be mentioned in the proposal.

iv) Risk Coverage: All Risk Insurance cover including Earthquake and Terrorism Cover. The premium rate for terrorist cover, if chargeable separately with ceiling of loss liability, if any, should be quoted separately (It may be noted that GAIL, Pata is already having Fire Insurance policy worth Rs.4629.83 crores for plant & machinery including terrorist cover). v) MOU: The Insurance Company shall enter into an MOU with GAIL so as to ensure a speedy settlement of insurance claim(s) and good services. Copy of prescribed format for MOU is enclosed. vi) Interest to be covered: Principal and Contractor. vii) Option of Lodging the Claim: For all the interest covered under the policy, the Principal and/or Contractor may Lodge the claim on the Insurers. C: SUM INSURED

i. The sum to be insured in as mentioned above. Detailed break-up of sum-insured is as per SOR enclosed.

ii. Sum insured may be revised at the discretion of GAIL during the currency of the policy with pro-rata adjustment/payment of premium.

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MEMORANDUM OF UNDERSTANDING SIGNED BETWEEN

GAIL (INDIA) LIMITED & INSURER GAIL (India) Limited, Pata has appointed M/s……………………………. (Insurer) to issue Marine cum Erection policy in respect of 6th Furnace – Gas Cracker Unit Project in Petrochemical Plant at Pata, Distt. Auraiya (UP). In order to establish proper understanding and to provide efficient and satisfactory services by the Insurer, this Memorandum of Understanding (MOU) has been signed between M/s………………………and M/s GAIL (India) Limited, Pata. The parties hereby agree as follows:-

Documentation

1. The underwriters will issue the Premium Receipt and the Cover note for the

desired coverage, immediately on receipt of the necessary premium cheque by them.

2. The corresponding policy documents will be issued to GAIL within five working days of the receipt of the premium cheque.

3. Any amendment of the policies shall be confirmed within five working days by issuing endorsement of the receipt of the necessary information/premium from GAIL.

Claims

1. A panel of approved Surveyors in case of all losses/damages, for which necessary claims are to be lodged, shall be finalized by mutual discussions within 15 days of signing of this MOU.

2. All claims lodged on the underwriters shall be promptly settled as per the following understanding. a) “On Account Payment” (of the order of 90%) in case of loss beyond Rs. 5

lacs shall be released by the underwriters within 7 working days of the receipt of preliminary report of the Surveyors. The preliminary survey report shall be issued by Surveyors within 5 working days of their visit subject to production of minimum required details and information. However, documents required to be obtained from Govt. agencies like Fire, Final Report from Police authorities and Fire Brigade Report etc shall not be binding for release of On Account Payment. The surveyor should attend the site within a period of not more than a week of the reporting of the loss.

b) Final payment of the claim shall be made within 10 days of receipt of Final Survey Report and all necessary supporting documents/information from GAIL.

c) The final survey should be arranged by the insurance company within a period of 1 month of the lodgment of the claim.

3. The underwriters have agreed to provide to GAIL with a comprehensive procedure and documents to be followed in case of claims, within 21 days of commencement of insurance of GAIL’s risk.

General

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1. The underwriters confirm that the premium quoted is final and are as per the TAC guidelines and that there is no violation of any TAC and/or other mandatory guidelines/rules. Any upward revision, other than due to tariff revision and govt. levies and duties, in the premium, if found at later date, will be borne by the underwriter. The benefit due to downward revision in the premium shall be passed on to M/s GAIL (India) Ltd.

2. The Insurer has appointed Shri………………………. to service directly GAIL account in respect of all claims and underwriting. Their present address and contact nos. are as under:

---------------------------- ………………………… Insured Insurer Date Place

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CUT-OUT SLIP (TO BE PASTED ON THE ENVELOPE)

DO NOT OPEN – THIS IS A QUOTATION

NAME OF WORK: TENDER FOR MARINE CUM ERECTION

ALL RISK INSURANCE POLICY FOR 6TH

FURNACE – GAS CRACKER UNIT PROJECT

AT GAIL, PATA

BID DOCUMENT NO. : GAIL/PATA/F&A/INS/GCU/2009 DUE DATE & TIME OF: 18.12.2009 UPTO 1500 HRS. SUBMISSION OF BID FROM TO Name: CENTRAL RECEIPT SECTION Address: SECURITY MAIN GATE, GAIL (INDIA) LIMITED P.O. PATA, DIST. AURAIYA (U.P.) – 206 241