benefication of coal doc spec-may 2011

8/3/2019 Benefication of Coal Doc Spec-May 2011

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RAJPURA POWER PROJECT

A:General Terms & Conditions

B:Technical & Commercial Specifications

For Beneficiation and Supply of Beneficiated Coal

From SECL mines to NPLs Rajpura Power Project

at Rajpura, District Patiala, Punjab

May 2011


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Sr. No Particulars Page No.

TABLE OF CONTENTS

Preamble....... 3

1. Purpose 3

2. Definitions.. 3

3. Scope of Work. 4

4. Qualification Criteria . 6

5. Performance & Delivery 7

6. Liquidated Damages 7

7. Price Index

9

8. Billing and Payment.. 10

9. Guaranteed Specifications of Washed Coal 11

10. Sampling and Analysis 11

11. Performance Bond.. 12

12. Indemnity Bond. 12

13. Term & Termination.. 12

14. Force Majeure 13

15. Independent Contractor 13

16. Transfer & Assignment 13

17. Regulatory Approvals 13

18. Confidentiality. 13

19. Limitation of Liability . 14

20. Applicable Law and Jurisdiction . 14

21. Dispute Resolution. 14


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Preamble

Nabha Power Limited (NPL), a wholly owned subsidiary of Larsen & Toubro Limited

(L&T) and existing under laws of India having its registered office at PO Box no.28, NearVillage Nalash, Rajpura 140401, Punjab is desirous of entering into a contract with a

qualified Washery & Logistics Contractor (hereinafter referred to Contractor) who fulfils

the terms and conditions (hereinafter referred to as GTC) mentioned herein below for the

purposes of lifting from the mines, beneficiation, transportation and supplying the required

quality and quantity of coal to NPL. The said coal shall be used for 2 700 MW Rajpura

thermal power Project situated in the State of Punjab.

1. Purpose:1.1 NPL shall select the Contractor for the purpose of picking up required quantity

of coal from appointed colliery, beneficiating and delivering the coal to the

Rajpura Power Project through rail.

1.2 NPL shall enter into a definite contract with the selected Contractor for thepurpose of beneficiating & transporting the coal for the said Project (hereinafterreferred to as Contract).

2. Definitions:2.1 ARB shall mean As Received Basis.2.2 Beneficiated Coal or Washed Coal shall mean the beneficiated coal which

satisfies the laid down quality parameters in this GTC.

2.3 FSA shall mean the Fuel Supply Agreement executed by NPL with SECL forthe purpose of supply of coal to Rajpura Power Plant.


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2.4 RoM Coal shall mean Run of Mine Coal supplied by SECL to WasheryContractors for beneficiation.

2.5 SECL shall mean the South Eastern Coalfields Limited.2.6 Washery Rejects Contractor or WRC shall mean the Contractor to whom

NPL decides to handover the washery rejects for sale/ disposal of rejects.

2.7 Washery shall mean Coal Beneficiation Plant.

3. Scope of Work:Briefly, the scope would be lifting of RoM coal from the designated mines of SECL,

washing the RoM coal at the washery and transportation of washed coal to Rajpura

Power Project in the state of Punjab. For the purpose of offer, coal supply to be

considered from Korba area of SECL. Details are furnished below:

3.1Liaising and follow up with SECL to achieve 100% materialization of linkagequantity.

3.2Coordinating with various departments of SECL regarding works pertaining totaking delivery of raw coal and the movement of permitted quantity of coal to

coal washery.

3.3Coordinating with the agency appointed by the NPL for collection of raw coalsamples and analysis at mines end.

3.4Arrangement of necessary trucks for collection of raw coal at colliery end. SECLmay do the loading of raw coal.

3.5Weighing of raw coal loaded in the trucks at mine end in the presence ofrepresentatives of NPL/SECL.

3.6Transporting of raw coal from colliery to washery.3.7Receipt, unloading and stacking of raw coal at the washery.


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3.8Beneficiation of the coal to obtain specified parameters of beneficiated coal.3.9Assisting NPL/ Agency appointed by NPL for sampling & analysing of washed

coal at the washery.

3.10Weighing of washed coal at the washery outlet in the presence of NPL /Agencyappointed by NPL.

3.11Transportation of beneficiated coal from washery to railway siding by trucksand stacking.

3.12Loading of washed coal into railway wagons at washery end railway siding andweighing of washed coal loaded into the rakes in the presence of representativesof NPL.

3.13Follow up with various agencies such as Railways etc., regarding workpertaining to movement of washed coal from the stock yard at the railway siding

at washery end and up to Power plant via rail.

3.14Arranging required no. of railway wagons at required intervals for loading ofwashed coal at washery end railway siding.

3.15Lodging claims and follow up for missing wagons and diverted wagons.3.16Assist in receipt, unloading of washed coal from wagons and stacking at Power

Plant in the designated area.

3.17Monitoring the quality and quantity of coal on delivery at Power Plant. Anyshortage in coal quality and quantity delivered beyond permissible limit is to the

account of the contractor.

3.18All expenses including insurance coverage for fire hazards, pilferage, etc withrespect to coal transportation by road, rail and coal washing including handling

and storage to the contractors account.


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3.19In case of additional allotment from SECL, the Contractor should be in aposition to handle the additional quantity for lifting, washing and transport to

Power Plant with the same terms & conditions on request from NPL.

3.20Minimizing transit losses to the limit of 0.8% as stipulated by CERC.Note 1: The Contractor shall be required to obtain confirmation from SECL to release

the raw coal to the Washery.

Note 2: The payments with respect to transport of coal from collieries to the Washery

and then from Washery to Rajpura Power Plant including the railway freight and

demurrage charges shall be complete responsibility of the Contractor.

4. Qualification Criteria:4.1 Contractor to furnish the appropriate documentary evidence for the following

qualification criteria:-

4.1.1 Minimum installed capacity of 10MTPA as on 31-03-2011.4.1.2 Washeries in operation for at least preceding 3 years (from 31-3-2011).4.1.3 Washery to be preferably situated in the area of SECL Korba/Raigarh.4.1.4 Preferably ownership/access to sidings.

4.2 Contractors planning to put up washeries in SECL Korba/Raigarh area (whootherwise meet balance qualifying requirements) by 31-03-2013 may beconsidered for the purpose of evaluation. Such offers shall be supported with

copies of clearances from respective statutory authorities demonstrating the

preparedness.


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4.3 In case Contractor is a Joint Venture Company and/or Consortium, all thepartners to such Joint Venture and/or Consortium shall be jointly & severally

responsible for discharging obligations under this GTC. The signed copy of the

Joint Venture and/or Consortium Agreement to be submitted. One of the

Partners to such Joint Venture and/ or Consortium shall be nominated as Lead

Partner/In-charge for the Contract. Prior permission of NPL will be required for

any change in JV/Consortium partners.

5. Performance & Delivery:a. Washery Contractor shall arrange to obtain Delivery Orders from SECL so as to

supply beneficiated coal as required by NPL.

b. Liquidated Damages shall be levied based on the variance with respect to dailyschedules at the rate of 10% of notified ROM price. The tonnages for applying the

liquidated damages would be computed based on standard deviation of daily

variance quantities with respect to the Clause 6.

6. Liquidated Damages:Sl.No. Deviation Revised Norms Adjustment Backup

1 For every 1%

increase (or decrease,

limited to 2% from

the norm) in ash

content

Yield will be

revised upwards

(downwards) by

2.5%

Recoup (or credit)

the quantity &

recover (or credit)

freight.

Shortage quantity

will be recovered

at 1.5 times the

prevailing price

of ROM coal.

2 For every 1%

increase in T.M

beyond permitted

Weight will be

adjusted by 1% for

the lot.

Recoup quantity

and recover

freight

3

Ash above norm -

Payment of

beneficiation charges

Ash 33% Full payment of beneficiation charges

For every increase

in 0.1% in the ash

content of the

Liquidated damages at the rate of 1.5%

of beneficiation charges in terms of

raw coal, payable per ton of


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beneficiated coal,

for ash content

above 33% up to a

cut-off limit of

33.5%

beneficiated coal at power plant.

Ash > 33.5% No payment of beneficiation charges.

Coal with ash > 34 will not be

accepted.

4 Less lifting of ROM

coal - below 95% of

DO

Penalty @ 15% of notified price of

ROM coal on the shortfall quantity

5 Variance in delivery 10% of ROM price multiplied by

standard deviation of daily variance

w.r.t schedules, calculated on a

monthly basis

6 Transit loss beyond

(under) 0.8%

Equivalent quantity of ROM coal will

be recouped (credited).

7 Non-commencement

of Supply

Penalty of Rs 50000 per day for

delayed period.

8 Under loading of

wagons/rake

Contractor to bear idle/penal/excess

freight.

9 Over loading of rakes Contractor to share 80% of penal

freight (excluding normal freight)

charged by railways.

10 Late receipt of coal atplant

0.25% of total charge paid per ton ofwashed coal per day for delayed

period.


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7. Price Index:Sl.No. Item/Activity Rate basis Remarks

1 Price of RoM coal (-250mm)

Notified by SECL,

including taxes and duties,

on per ton of RoM basis.

Will be paid by NPL

directly to SECL

2Transportation from colliery

to washery.

As per Ex-servicemen rates,

on per ton of ROM basis.

Will be reimbursed

to the Contractor

3 BeneficiationOn per ton of beneficiated

coal.

Service tax extra.4

Transportation to railway

siding and loading into

wagons

As per Ex-servicemen rates

on per ton of beneficiated

coal.

5 Railway liaising chargesOn per ton of beneficiated

coal received at plant.

6 Rejects credit Per ton basisNPL will have option

to sell to 3rd party.

7 Railway Freight As per rates of Railways.Will be reimbursed

to the Contractor.

Please indicate your price variation/escalation for washing & other activities not

covered by the mining company, railways & standard rates of Ex-Servicemen for the

respective contracts.

Any variation in the rate for statutory items will be admitted only on submission of

necessary documents in proof of such variation from the concerned statutory bodies.

As railway freight is reimbursed at actuals, it automatically takes care of any railway

freight variation.


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8. Billing and Payment:8.1 NPL shall arrange for release of monthly payments to SECL for issuance of

delivery orders by SECL to off take the required quantity of F grade RoM coal

by the Contractor as per the monthly/annual contracted quantity allotted to NPL

Power Stations by SECL.

8.2 The 10 days average of washed coal received at the Rajpura Power Plant shall beconsidered as one bulk lot received for payment. Therefore, accordingly there

shall be supply of 3 lots in a month.

8.3 Liquidated Damages shall be applicable and the LD amount shall be deductedfrom the total payment for invoices raised by the Contractor.

8.4 Contractor is required to furnish following supporting documents along with theinvoice:-

8.4.1 copy of DO,8.4.2 transportation and pay loading invoices,8.4.3 invoices related to freight,8.4.4 weighment sheets,8.4.5 sampling and analysis results,8.4.6 rake wise loading statement,

8.4.7 any other relevant documents.


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9. Guaranteed Specification Of Washed Coal:9.1 The guaranteed parameters of Washed Coal will be as under:

9.1.1 Ash (ARB): 31%9.1.2 Total Moisture (ARB): TM (ARB) of RoM Coal + 1%9.1.3 Gross Calorific Value (ARB): 4400 Kcal/Kg.9.1.4 Size: 0 to 50 mm9.1.5 Normative Yield: 80% of RoM Coal

9.2 In case of analyzed Grade of RoM Coal is the E-Grade instead of F-Grade, thenormative yield of 85% (i.e. 5% higher than the 80% yield corresponding to the

F- Grade coal) shall be considered for the quantity of coal for which the E-

Grade is analyzed and bonus bill/ claim is raised by SECL. Accordingly, the

revised normative yield will be worked out on weighted average basis from the

lot-wise quantities of F- Grade and E-Grade Coal as analyzed. The Revised

Normative Yield, so worked out, shall replace the Normative Yield of 80% as

referred above in clause 9.1.5.

9.3 The Quality of coal shall be assured on 10 days weighted average basis.

10. Sampling & Analysis:Sl.No. Activity Point Method Std/Equipment

1 ROM coal sampling

and analysis

Colliery end Joint (With

SECL)

BIS

2 Washed coal

sampling and analysis

Plant receiving

end

Third Party BIS

3 ROM coal weighment Colliery end Joint (With

SECL)

In motion electronic

weigh bridge

4 Washed coal

weighment

Plant receiving

end

Plant, average

of 10 days.

In motion electronic

weigh bridge


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11. Performance Bond:11.1 Bank guarantee equivalent to 10% of the Contract value shall be furnished. This

shall remain valid throughout the tenure of the Contract & for a period of six (6)

months beyond the tenure stipulated herein. Format for the same will provided

later.

12. Indemnity Bond:11.2 Washery Contractor shall furnish an Indemnity Bond for the amount of 45 days

quantity of RoM F Grade Coal. Format for the same will provided later.

13. Term and Termination:13.1 The term of the Contract shall be for a period of 5 years subject to Contractor

performing to NPLs satisfaction on an ongoing basis. In case the coal linkage to

NPL gets cancelled or discontinued from the mines in Korba/Raigarh areas, the

Contract shall terminate automatically.

13.2 After award of the Contract by NPL, if the Contractor fails to start the executionof the Contract by the date committed by the Contractor then NPL reserves the

right to cancel the Contract without giving any notice period and without any

compensation to the Contractor. In such case, the Bank guarantee of the

Contractor will be forfeited.

13.3 NPL would reserve the right to cancel the contract in full or part by giving onemonth written notice if the performance is not satisfactory and not in accordance

with the Contract and GTC or in case the Contract is found uneconomical to

NPL.

13.4 NPL at its sole discretion during the tenure of the Contract shall reserves theright to terminate/ cancel the Contract by giving one month written notice

without assigning any reason thereof.


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14. Force Majeure:14.1 Neither Party shall be in default under this GTC by reason of its failure or delay

in the performance of its obligations, if such failure or delay is caused by force

majeure event which is beyond the reasonable control of the Parties such as acts

of God, change in government laws and regulations, strikes, lock-outs, wars,

epidemics, fire, explosion etc. The affected Party should provide notice of

happening of force majeure event to the other Party.

15. Independent Contractor:15.1 None of the provisions of this GTC shall be deemed to constitute a partnership,

joint venture or any other relationship between the Parties hereto and no Partyshall have any authority to bind or shall be deemed to be the agent of the other in

any way.

16. Transfer and Assignment:16.1 Contractor shall not be entitled to assign or transfer in whole or in part any of

their rights, powers, obligations and/ or duties under this GTC and the Contract

to any third party either directly or indirectly without the prior consent of NPL.

17. Regulatory Approval:17.1 Contractor shall use their best efforts to obtain from the appropriate regulatory

authorities all the consents and approval including the environmental clearances

and resolve the issues including public grievances (if any) for the execution and

performance of the Contract.

18.

Confidentiality:18.1 Contractor and its affiliates, associates, employees, directors, representative,

agents shall keep secret and maintain strict confidentiality of all the know-how,

specifications, business documents and or any other confidential information

provided by NPL under these GTC or under the Contract.


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