Terms & Conditions of Spot
e-Auction Scheme 2007 (As finalized by
CIL on Uniform basis for all Coal
Companies & amended in 244th meeting of
CIL Board dated 11.07.08)
Note:AN AMOUNT TO THE EXTENT OF 0.9 %
TOGETHER WITH APPLICABLE TAX ON THE
TOTAL BID VALUE AGAINST THE TOTAL BID
QUANTITY BIDED IN RESPONSE TO THE ABOVE
OFFER , SHALL BE PAYABLE BY THE
SUCCESSFUL BIDER UNDER HEAD “SELLING
EXPENSES “ LIKE THE ADDITIONAL ELEMENTS
BEING PAID BY THE SUCCESSFUL BIDDER E.G.
SIZING CHARGE, TRANSPORTATION CHARGE
[WHERE APPLICABLE ] , STATUTORY LEVIES
ETC WHILE SUBMISSION OF TOTAL COAL VALUE
DRAFT FOR OBTAINING DELIVERY / SALE
ORDERS FOR ROAD & REQUIRED PROGRAMME FOR
RAIL MODE BEFORE ISSUE OF CONSENT. THIS
SELLING EXPENSES PLUS APPLICABLE TAX IS
PAYABLE FROM SEPTEMBER’08 SPOT AUCTIONS
AND ONWARDS.
Objective:
Coal distribution through e-Auction
has been introduced with a view to
provide access to coal for such buyers
who are not able to source coal through
the available institutional mechanism.
In the long run it is expected that
e-Auction may help in creating spot as
well as future market of coal in the
country.
The purpose of e-Auction is to
provide equal opportunity to purchase
coal through single window service to
all intending Buyers.
E - Auction has been introduced to
facilitate across the country wide
ranging access to book coal on-line for
all sections of coal Buyers enabling
them to buy coal through a simple,
transparent and consumer friendly system
of marketing and distribution of coal.
Terms & Conditions With
reference to para VI (4) of the
‘e-Auction Scheme 2007’ for Spot
e-Auction the detailed terms and
conditions are given below :
1. Eligibility: Any Indian
Buyer (viz. individual, partnership
firm, companies etc.) can participate in
e-Auction for procurement of coal.
2. Registration:
2.1 Before participation in the
e-Auction, a prospective Buyer shall be
required to get itself / himself
registered with the Service Provider
appointed by the CIL / Coal Companies
for the purpose, by submitting an
application in the prescribed format
available on the Website of the
respective Service Providers. The
application shall be made along with the
required documents such as copy of
Income Tax return (latest), PAN Number,
Sales Tax / Vat Registration
Certificate, SSI Registration, Trade
License, if applicable, Passport size
photograph, etc. as prescribed by the
service provider. Registration can be
done either online, or at any of the
front offices of the service provider.
2.2 After the registration,
all-prospective Buyers will have an auto
generated “Unique User ID” & a
“password” based on which they can log
in. Details of the registration process
with the service provider will be
available in their respective websites.
2.3 The service provider shall issue
“Photo Identity Card” to their
registered bidders duly authenticating
the identity & signature, indicating a
“Unique Registration Number” allotted to
them. The “Unique registration number”
of the registered bidders shall be
communicated to the Coal Companies by
the service provider.
2.4 Only one registration will be
done against one PAN number. However,
based on more than one independent valid
sales tax registration, more than one
registration against a PAN Number can be
considered. In such cases, the details
of valid sales tax registration will be
indicated in each ‘Photo Identity Card’.
2.5 All Buyers having been registered
with the service providers shall also
have to furnish non-interest bearing
Earnest Money Deposit (EMD) at the rate
of
Rs.500/-
per tonne for coal of grade ‘E’ & above, &
Rs. 400/-
per tonne for coal of grade ‘F’ & below, with the Service
Provider. This EMD shall not be specific
for a particular Subsidiary Coal Company
and shall be available with the Service
Provider for participation in the
e-Auction across the Subsidiary Coal
Companies of CIL, as long as the
required amount of EMD is available in
the bidders a/c. with the Service
Provider.
3. Notification:
3.1 Coal companies would draw program
for conducting at least two e-Auctions
per month and notify the same, minimum
7(seven) days in advance, through
display on the Company’s notice board
and putting the same on the Coal
Company’s websites for wide publicity.
The program will be intimated to the
Service providers accordingly for
hoisting the same on their websites
also.
3.2 There will be separate auction
for dispatches by rail and road mode.
The minimum quantity for bidding would
be 50 (fifty) tonnes for a source for
Road mode, where as in case of Rail the
minimum quantity for bidding would be 1
(one) rake. The rake size shall be as
per prevalent Railway Rules. The
quantity of coal in a rake shall be as
indicated in the notice of E-auction.
3.3 The Buyer should satisfy itself /
himself about the Rake fit stations /
destinations from the Railways before
participation in e-Auction by rail,
Non-acceptance of the programme, even
after the option exercised under extant
Railway rules, on account of rake-fit
stations / destinations being not
accepted by the Railways shall be
treated as a failure of the Buyer
leading to forfeiture of relatable EMD.
4. Bidding Process
4.1 The registered Bidders shall be
required to record their acceptance
after login, of the Terms & Conditions
of the e-Auction before participation in
the actual Bidding Process.
4.2 Before participating in
e-Auction, bidders are to satisfy
themselves with the quality of coal
being offered from a source.
4.3 Prospective Bidders are entitled
to Bid for the quantity to the extent of
amount of EMD for which is available
with the service provider in the
bidder’s account at the time of bidding.
4.4 The Buyers while bidding shall
quote their “Bid price” per tonne in
Indian Rupee as base coal price on
FOR/FOB colliery basis, exclusive of
other charges like statutory levies,
Selling Expenses, surface transportation
charges, sizing/beneficiation charges,
taxes, cess, royalty, SED, & any other
charges as will be applicable at the
time of delivery. These charges as well
as freight etc. shall be on the Buyers’
account.
4.5 The bidder has to bid for a price
equal to or above the reserve price to
secure consideration in the concerned
e-Auction.
4.6 The date, time and period of
e-Auction as notified in advance
including closing time on portal of
service provider shall be adhered to but
for the event of force majeure. However,
the closing time of e-Auction will be
automatically extended up to last Bid
time, plus 5 minutes, so that
opportunity is given to other Bidders
for making an improved Bid on that item.
4.7 The Bidder shall offer his Bid
price (per tonne) in the increment of
Rs.10/- (Rupees ten) during the Normal
e-Auction period. During the extended
period of first two (2) hours, the
Bidder shall offer his Bid price in the
increment of Rs.20/-. Beyond this
extended period of two hours the bid
price increment would be Rs. 50/-
(Rs.Fifty ) only.
4.8 While maintaining the secrecy of
Bidder’s identity, the web site shall
register and display on screen the
lowest successful Bid price at that
point of time. The system will not allow
a Bidder to Bid in excess of his
entitled quantity as per his EMD.
However once a Bidder is out-bided by
another (in part or full) the particular
Bidder shall become eligible for making
an improved Bid.
4.9 Following criteria would be
adopted in deciding the successful
bidders:-
(a) Precedence will be accorded to
the highest bid price in the descending
order (H1, H2, H3 and so on) as long as
the offered quantity is available for
allocation.
(b) If two or more buyers bid the
same highest price, precedence for
allotment will be accorded to the buyer
who has placed the bid for the higher
quantity.
(c) In case two or more buyers bid
the same price and the same quantity,
precedence will be given to the buyer
who has accorded his bid first with
reference to time.
5. Post e-Auction process:
5.1 Each successful bidder will be
intimated through e-mail / SMS by the
Service Provider on the same date after
the closure of e-Auction. However, it
will be the responsibility of the bidder
to personally see and download the
result displayed on website, on the same
date after close of e-Auction.
5.2 The successful bidders after the
e-Auction, will be required to deposit
coal value with the concerned coal
company, within a period of seven
working days, after the date of closing
of e-Auction. Seven working days would
be reckoned as applicable to the
respective Subsidiary Coal companies’
office where the payment/ deposit is
required to be made.
5.3 Equivalent amount of EMD of
successful bidder corresponding to
successful bid quantity, shall be
blocked and will be transferred to Coal
Company by the service provider
along-with the bid sheet in respect of
successful bidders.
6. Terms of payment:
6.1 The coal value to be deposited in
advance by the successful bidders shall
be computed and deposited after making
provision for the EMD amount for the
successful bid quantity already
transferred by the service provider to
the subsidiary company. In other words,
the coal value to be deposited and EMD
amount together, shall be equivalent to
the 100 % coal value.
6.2 EMD amount shall not be treated
as an adjustment towards the coal value
but would stand converted into a
‘Security Deposit’ for performance of
the bidders towards completion of the
said transaction.
6.3 The above security deposit (as
converted from the EMD amount) would be
adjusted as coal value, only after
completion of lifting of coal covered
under coal value paid, excluding
security deposit. However, in the event
of default in performance by the bidder,
the provision of forfeiture of the
‘Security Deposit’ (as converted from
the EMD) as stipulated, would be
applicable.
6.4 In case of road supplies, once
the coal value is deposited by way of
demand draft /pay order, drawn in favour
of the concerned coal company,
along-with the debit advice issued by
the bank, certifying that the DD/pay
order has been issued, by debiting the
account of the concerned Buyer,
Sale/Delivery orders shall be issued
within seven days by the coal company
after encashment of buyer’s financial
instrument.
In case of successful bidders, if the
coal value is deposited for less than
the allotted Quantity but not below 50%
of the allotted quantity or, 50 tonne
whichever is higher, the coal company
shall accept the payment for the said
amount and forfeit the EMD for the
failed quantity. However if the buyer
fails to deposit the coal value for at
least 50% of the allotted quantity or 50
tonnes whichever is higher then the
entire EMD of the allotted quantity
shall be forfeited.
6.5 However, a successful bidder
whose allotted quantity is only 50
tonnes will be allowed to deposit coal
value for minimum 90% i.e 45 tonnes
within the stipulated period of 7 days
without which the amount shall not be
accepted. In such event they shall be
permitted to deposit the balance
fractional amount, limited to 10 % of
the total coal value of 50 tonne, within
the subsequent period of 3(three)
working days. In spite of this, if they
fail to deposit full coal value of 50
tonne (minimum bid quantity), EMD for
entire 50 tonne shall be forfeited.
6.6 In case of rail borne supplies,
there shall be two options available.
While submitting program, the bidder at
his option can deposit 100 % BG on the
prescribed format from the buyers own
account or else may deposit 100% amount
through demand draft /pay order, drawn
in favour of the concerned coal company,
along with the debit advice, issued by
the bank certifying that the DD/pay
order has been issued by debiting the
account of the concerned Buyer.
6.7 In case of Buyers who have booked
their rail programme through BG, a
notice for deposition of coal value by
way of DD/Pay order, will be displayed
on the notice board of the coal company,
at least three working days in advance
before the expected date of offer to the
Railways for allotment. The Buyer will
be accordingly required to deposit
DD/Pay Order along with the debit advice
to the tune of BG involved in the
programme, within 48 hours of such
notice.
In the event of non-deposition of
100% coal value by the Bidder in terms
of Clause-6.7 above, the consent given
against rake programme will be withdrawn
by the coal company and EMD as per
e-Auction scheme will be forfeited.
6.8 The Buyers shall also have the
option of e-Payment once the system in
the Coal companies is suitably developed
& the same is notified on the websites
accordingly.
7. Procedure of Coal Delivery
By Road:
7.1 Coal company shall issue Sale /
Delivery Orders to the successful
bidders in terms of Clause 6.4 after
realisation of payment. The Buyer has to
submit the option before the issue of
the Sale / Delivery Order for movement
of the coal “within state” or “outside
state” and the Sale / Delivery Order
would indicate the same accordingly.
However, the challan issued by the Coal
Company shall indicate the destination.
7.2 The validity period to complete
lifting of coal by road shall be 45 days
from the date of issue of Sale/Delivery
Order. No extension of validity will be
allowed in any case.
By Rail:
7.3 The seniority of buyers in case
of rail borne supplies shall be guided
by the seniority list as provided by the
service provider based on buyer’s bids.
7.4 The quantity allotted against
each rake is indicative quantity only
and delivery shall be made on the basis
of actual weighment by the Seller at the
loading end.
7.5 The validity period for seeking
allotment of rake in case of rail
supplies shall be 45 days from the date
of issue of consent by the coal company.
Once the rake is allotted it shall
remain valid for supply of coal as per
prevailing Railway Rules.
7.6 Although loading will be the
responsibility of the coal company, but
to avoid any complaint regarding
over-loading, under loading and quality,
the Buyer himself or his authorized
representative may supervise loading at
the loading point. The authorized
representative must carry valid
authority letter along with photocopy of
Identity Card issued by Service
Provider.
7.7 Overloading & Underloading
A) Any penal freight for overloading
charged by the Railways for any
consignment shall be payable by the
Purchaser. However, if overloading is
detected from any particular colliery,
consistently during three (3) continuous
months, on due intimation from the
Purchaser to this effect, the Seller
undertakes to take remedial measures.
B) Any idle freight for under-loading
below the stenciled carrying capacity,
as shown on the wagon, for Grade A,
Grade B, Steel Grade I, Steel Grade II,
Washery Grade I, Washery Grade II,
Semi-coking Grade I, Semi-coking Grade
II and Washed Coal; and below the
stenciled carrying capacity, as shown on
the wagon, plus two (2) tonnes for all
other Grades of Coal shall be payable by
the Seller.
C) Idle freight resulting from
under-loading of wagon, as per point
no.2, shall be adjusted in the bills.
Idle freight shall be reckoned as:
(i) the difference between the
freight charges applicable for the
stenciled carrying capacity, as shown on
the wagon, less the freight payable as
per actual recorded weight of Coal
loaded in the wagon for Grade A, Grade
B, Steel Grade I, Steel Grade II,
Washery Grade I, Washery Grade II, Semi-
coking Grade I, Semi-coking Grade II and
Washed Coal; Or
(ii) the difference between the
freight charges applicable for the
stenciled carrying capacity, as shown on
the wagon, plus two (2) tonnes less the
freight payable as per actual recorded
weight of Coal loaded in the wagon for
all other Grades of Coal.
7.8 The weighment at the loading end
shall be final and binding for all
commercial purposes.
8. Refund of EMD for Unsuccessful
bidders:- In case of unsuccessful
bidders, EMD shall be refunded by the
Service Provider after the auction is
over, on the bidder’s request. However,
if no such request is received the
Service Provider will retain the EMD for
participation in e-Auction in future.
9. Forfeiture of EMD: - The
EMD submitted by the successful Bidders
will be liable for forfeiture in the
following cases: -
9.1 If after completion of e-Auction,
a successful bidder fails to make
payment for the coal value including all
other charges within the stipulated
time, the proportionate EMD equivalent
to the failed quantity shall be
forfeited subject to the provisions at
Clause 6.4 and/or Clause 6.5 of this
document, and/or,
9.2 If the successful bidders does
not lift the booked quantity within the
stipulated validity period, the
proportionate Security Deposit @ Rs.
500/- or Rs 400/- per Tonne (as converted from the
EMD amount) for the unlifted quantity
would be forfeited. Such forfeiture
shall be made only if the balance
Unlifted Quantity is equal or more than
a Truck Load i.e.9 or 10 tonnes as
applicable. Such forfeiture, however,
would not take place if the coal company
has failed to offer full or part of the
successful bid quantity within the
validity period. In such cases again, no
forfeiture would take place if the
balance quantity is less than a truck
load/rake load.
9.3 If the Buyer cancels the
order/Rake after booking, the EMD @
Rs. 500/- or
Rs.400/- per tonne shall be forfeited
for the rake cancelled.
10. Refund of Coal value: The balance
coal value of the unlifted quantity
after the expiry of the validity period
for supply of coal and completion of
required commercial formalities shall be
refunded subject to forfeiture of EMD if
required, in terms of the forfeiture
clause as above.
11. General Terms & Conditions:
11.1 The coal procured under
e-Auction is for use within the country
and Not for Export.
11.2 All terms and conditions of
Scheme are subject to force majeure
conditions as applicable.
11.3 Bidders must always ensure to
keep their email address valid. In any
case Buyers can not be absolved from
fulfilling the responsibility of
compliance of any of the terms and
conditions herein including payment
terms due to non-receipt of emails from
the Service Provider.
11.4 Bidders must be extremely
careful to avoid any error in bidding
(whether typographical or otherwise) and
they are fully responsible to check and
rectify their bid before submitting
their Bid into the live e-Auction floor
by clicking the “Bid” button. During the
auction if the incremental bid price is
more than 50% of the immediate preceding
bid price, then the system will seek a
re-confirmation from the Bidder before
the bid is registered.
11.5 There is no provision for
bidding in decimals. The Bidder shall be
solely responsible for all consequences
arising out of the bid submitted by him
(including any wrongful bidding by him)
and no complaint /representation will be
entertained by the Service Provider/Coal
Company in this regard.
11.6 The decision of the
Director-In-Charge of Marketing of CIL /
Coal Company in matters related to this
e-Auction shall be final and binding on
the bidders / Buyers.
11.7 Quantity mentioned in notice are
only indicative and may undergo a change
depending on factors like actual
production of coal, bottlenecks in coal
transportation etc.
11.8 There will not be any joint/
third party sampling facility extended
to any buyer. Refusal on account of
non-suitability and /or sub-standard
quality for the allotted quantity of
coal shall not be acceptable.
11.9 Coal Company / Service Provider
reserve the right to cancel the sale of
coal under this e-Auction from any
source / location in part or whole at
any stage at its sole discretion without
assigning any reason thereof and no
party shall have any right whatsoever to
raise any claim in that regard on that
count.
11.10 CIL/Coal Company reserves their
rights to amend/modify and revise the
terms and conditions contained herein in
full or in part at any point of time and
no party shall have any right whatsoever
to raise any claim in that regard on
that count.
11.11 Sale under each e-Auction shall
be an individual, independent, unique
and complete transaction.
11.12 In the event of any dispute,
Bidder / Buyer is necessarily required
to represent in writing to the General
Manager (Sales) of the concerned coal
company, who would deal with the same in
a period of one month from such
representation. Thereafter, if required
the matter be determined by the
Director-In-Charge of Marketing of the
concerned coal company. Any
interpretation of any clause of this
will be subject to clarification by CIL,
which will be deemed as firm and final.
All disputes arising out of this scheme,
or in relation thereto in any form
whatsoever shall be dealt exclusively by
way of arbitration in terms of the
Arbitration and Conciliation Act, 1996.
The arbitration shall be conducted at
Calcutta at a place to be notified by
CIL. The arbitrator shall be appointed
by the Chairman and Managing Director,
CIL upon written request in this behalf.
The award rendered by the Arbitrator
shall be final and binding on the
parties. (The place of arbitration &
nomination of arbitrator be varied
appropriately in view of the Coal
Company involved)”. |