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GOVERNMENT OF KARNATAKA FOOD, CIVIL SUPPLIES & CONSUMER AFFAIRS DEPARTMENT,

# 8, CUNNINGHAM ROAD, SAHAKARA BHAVAN, BANGALORE– 560052.

Website: www.ahara.kar.nic.in e-Mail :ddpd.fcs-ka@nic.in

Phone: 080-22354857,22354856

REQUEST FOR PROPOSAL

Food Civil Supplies and Consumer Affairs Department (FCS & CA Department),Government of Karnataka

Empanelment of suppliers for supply of Iron Fortified Iodised Salt (Double Fortified Salt) Free Flow & Iron Fortified Iodised Salt

(Double Fortified Salt) Coarse Crystal / Refined Iodised Salt (Free Flow) /Iodised Crystalline Salt under Public Distribution Scheme for

the year 2017-18 through e-procurement mode

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INDEX

Sl.No. Details Sections

1 Scope of work 1.1 to 1.7

2 Eligibility/Prequalification conditions 2.1 to 2.7

3 Documents to be furnished along with application for registration

3.1 to 3.14

4 Evaluation of application for registration 4.1 to 4.4

5 Scheduling of e-auctions 5.1 to 5.2

6 Quality parameters 6.1 to 6.7

7 Assaying 7.1 to 7.8

8 Process of electronic auction system on NCDEX Spot Platform

8.1 to 8.25

9 Order for Supply 9.1 to 9.10

10 Terms and conditions of delivery 10.1 to 10.4

11 Terms of Payment 11.1 to 11.4

12 Penalty Clause 12.1 to 12.2

13 Cancellation of Agreement 13.1 to 13.2

14 Force Majeure 14

15 Arbitration 15

16 Application for enrolment Annexure-1

17 NCDEX e Markets Ltd (NeML) registration form Annexure-2

18 Affidavit Annexure-3

19 Agreement KFCSC Annexure-4

20 Agreement TAPCMS & Other Agencies Annexure -5

21 Addresses of District Offices Annexure -6

22 Addresses of TAPCMS and Other Nominee Offices Annexure-7

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Empanelment of suppliers for supply of Iron Fortified Iodised Salt (Double Fortified Salt) Free Flow & Iron Fortified Iodised Salt (Double Fortified Salt) Coarse Crystal / Refined Iodised Salt (Free Flow) /Iodised Crystalline Salt under Public Distribution Scheme of Government of Karnataka through FCS & CA Department for the year 2017-18 under e-procurement mode.

INTRODUCTION:

a) Food, Civil supplies & Consumer Affairs Department, Government of Karnataka,

hereinafter called as FCS&CA Department, is responsible for providing food security and ensuring availability of food grains at subsidized prices, particularly to the poorer section of the society distributed through public distribution system, as well as promoting the welfare of the consumers. The department also has the responsibility of implementing the Essential Commodities Act 1955 both central and state acts.

b) The FCS & CA Department shall be procuring Iron Fortified Iodised Salt (Double Fortified

Salt) Free Flow & Iron Fortified Iodised Salt (Double Fortified Salt) Coarse Crystal / Refined Iodised Salt (Free Flow) /Iodised Crystalline Saltfor distribution to eligible card holders under PDS scheme. The process of procurement shall be through e-procurement mode by conducting e-Auction, an online platform provided by NCDEX e Markets Ltd (NeML).

c) In order to facilitate procurement process through e-Auction, the FCS & CA Department has invited applications from the eligible Manufacturers, Traders, Packers, Co –Operative Society’s, Bulk Suppliers and Producers which are owned or leased by the registered supplier. In respect of leased Units, the lease agreement should be legally registered with the competent authority. In respect of Traders they should have back to back supply agreement with Double Fortified Salt/Iodised Salt Manufacturers or packers in accordance with terms and conditions of RFP for enrolment as registered suppliers for supply of Iron Fortified Iodised Salt (Double Fortified Salt) Free Flow & Iron Fortified Iodised Salt (Double Fortified Salt) Coarse Crystal / Refined Iodised Salt (Free Flow) /Iodised Crystalline Salt.

d) The FCS & CA Department shall initiate enrolment of suppliers, schedule the e-Auctions and finalize the procurement rates and intimate respective procurement agencies, namely, Karnataka Food and Civil Supplies Corporation Ltd, hereinafter called as KFCSC Ltd, TAPCMS and other agencies for further needful. Accordingly, the District Manager KFCSC Ltd and Deputy Director FCS & CA in case of TAPCMS & Other Agencies shall place purchase indents for whole sale points managed by respective agencies. Accordingly the respective agencies, namely, KFCSC Ltd, TAPCMS and other nominees enter into agreement with the qualified suppliers, receive supplies and process the payments upon completion of supply in accordance with terms and conditions of this tender.

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e) The procedure for enrolment, registration and terms and conditions of supply under the above e-procurement for supply of Iron Fortified Iodised Salt (Double Fortified Salt) Free Flow & Iron Fortified Iodised Salt (Double Fortified Salt) Coarse Crystal / Refined Iodised Salt (Free Flow) /Iodised Crystalline Salt is as follows.

1. SCOPE OF WORK:-

1.1. The requirement of Iron Fortified Iodised Salt (Double Fortified Salt-DFS) Free Flow & Iron

Fortified Iodised Salt (Double Fortified Salt-DFS) Coarse Crystal / Refined Iodised Salt (Free Flow) /Iodised Crystalline Salt under this scheme for 2017-18 is approximately 10,500 Metric Tons per Month. The quantities indicated in respect of each district may vary depending upon the requirement and demand as indented by FCS & CA. Department. The auctions will be held periodically.

1.2. If the auction is held for more than one month requirement the delivery would be given on staggered way as per the purchase order issued by concerned agencies. In order to facilitate procurement process through e-Auction, the FCS & CA Department has invited applications from the eligible DFS/Iodised Salt refineries or DFS/Iodised Salt packers or Traders which are owned or Leased by the registered supplier.

1.3. In order to facilitate Manufacturers, Traders, Packers, Co-operative Societies, Bulk

Suppliers and Producers to participate in e-procurement process, registration with NCDEX e Markets Ltd (NEML) is mandatory. The procedure for registration with NCDEX e Markets Ltd is detailed in Clause-3.

1.4. The inspection and evaluation of samples will be carried out in accordance with specified

quality parameters as per the procedure stipulated in Clause-7.

1.5. After satisfactory supply of the tendered items by the successful bidder within the stipulated time, 80 % of payment will be released by respective District Managers of KFCSC Ltd through NCDEX e Markets Ltd (NeML) by electronic fund transfer to the respective account of supplier within 10 working days from date of submission of bills with relevant documents to the respective wholesale points managed by KFCSC Ltd. The balance 20 % will be released by KFCSC Ltd to the respective account of supplier through NCDEX e Markets Ltd (NeML) by electronic fund transfer within 25 working days from the date of submission of bills and completion of necessary audit with satisfactory assaying report.

1.6. In respect of TAPCMS Ltd and other nominees the purchase value will be remitted to

NCDEX e Markets Ltd (NeML) settlement account before placing Purchase Order. Thereafter the concerned Deputy Director, FCS & CA Department after confirming the fund transfer to NCDEX e Markets Ltd (NeML) settlement account, shall place Indent to successful bidder on behalf of TAPCMS and other nominees. The payment to suppliers

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will be released through NCDEX e Markets Ltd (NeML) by electronic fund transfer to the respective account of supplier upon completion of supply, submission of bills and duly acknowledged by the respective TAPCMS/other nominees within 10 working days from the date of supply confirmation.

2. ELIGIBILITY / PREQUALIFICATION CONDITIONS.

2.1. The Suppliers i.e. producer/manufacturer either have registered with Salt Commissioner of Salt Department of the Central Government or possess valid license from Bureau of Indian Standard/Valid Certificate from FSSAI. They should have entered into Memorandum of understanding (MOU) with NIN (National Institute of Nutrition) for carrying out production of Iron Fortified Iodized Salt (Double Fortified Salt) provided, they are following NIN process. If they are using a process other than NIN, they shall submit the relevant documents to authenticate the same.

2.2. Bidders should have valid trade license, import license (if applicable),They should possess valid VAT/GST(AS APPLICABLE)/CST registration (if applicable) issued by concerned authorities. They should be in operation for past one year with trade turnover of Rupees One Crore.

2.3. The Bidders having capacity of packing in packet of 1 Kilogram and having aggregate

production of not less than thirty-six thousand MT per annum are only eligible.

2.4. The Bidders should have proper valid license by the concerned authority for Manufacturing /Packing /Import /Storing of Double Fortified Salt/Iodised Sal as may be required under the law.

2.5. Salt Manufacturers should have been in operation for at least past One year. They

should possess valid Excise, VAT/GST (AS APPLICABLE) and State / Central Sales Tax registration issued by concerned authorities.

2.6. The DFS/Iodised Salt packers or Traders who have back to back supply arrangement

with DFS/Iodised Manufacturers / packers should have proper valid license by the concerned authority for processing and storing of DFS/Iodised Salt. Traders/Packers should produce back to back letter issued by DFS/Iodised Manufacturers for supply of DFS/Iodised Salt on regular basis to concern traders/packers.

2.7. The Firm/Bidder should not have been convicted for any offences or violation of any

State or Central act such as essential commodities act or any criminal offence under IPC.

2.8. FCS & CA Department reserves the right to accept or reject or keep the approval

pending in respect of all applications received for enrolment as eligible suppliers of DFS / Iodised Salt under e-Procurement mode. Such of those applicants who have not fulfilled the eligibility criteria for enrolment or failed to perform the assignments,

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directives as mandated either by FCS & CA Department or Government of Karnataka for current/previous year will not be considered and kept pending until such time the applicant submits the necessary documents, proof of performance, adherence to directives as the case may be.

3. DOCUMENTS TO BE FURNISHED ALONG WITH APPLICATION FOR REGISTRATION.

3.1. DFS / Iodised Salt Manufacturers should have proper valid license by the concerned

authority for Manufacturing / Packing/ Import/ Storing of Salt, Copy of which will have to be furnished. In respect of Traders/ Importers a valid trading license as may be applicable for trading in Salt shall be produced.

3.2. Manufacturers, Traders, Packers, Co-operative Societies, Bulk Suppliers and Producers

should furnish Self attested copy of audited balance Sheet, Profit & Loss account for past one year. In case of a leased unit, the above documents of both the entities i.e. lessor and lessee will have to be furnished.

3.3. Bidder shall submit self-attested copy of the Income Tax returns of last one year with a copy of a PAN card.

3.4. Traders/Packers should produce back to back letter issued by DFS / Iodised Salt

Manufacturers for supply of DFS / Iodised Salt on regular basis to concerned traders/packers.

3.5. Self-Attested copies of Certificate of registration under Excise, VAT/GST(AS

APPLICABLE), State / Central Sales Tax Act, Service Tax Act as applicable.

3.6. An Affidavit as per the format in Annexure-3 on Rs. 100/- non-judicial stamp paper duly notarised with seal and signature of the authorized person.

3.7. In case of Manufacturers, Traders, Packers, Co –Operative Societies, Bulk Suppliers and

Producers who wish to empanel, they should furnish a copy of the partnership deed or bye law of memorandum as the case may be. In case of Co-operative / corporate body copy of letter of authorization to the Chief Executive or the authorised Person to register and participate in the e-procurement/tender process should be furnished.

3.8. In case of Supplier(applicant for empanelment) who has entered into lease agreement

with DFS / Iodised Salt Manufacturers, Self- attested copy of legally registered lease agreement duly certified by the Chartered Accountant shall be enclosed.

3.9. DFS / Iodised Salt Manufacturers should furnish letter of authority or power of

attorney for having authorized the person to sign the documents on behalf of firm or society or corporate body.

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3.10. The address proof of the authorized signatory, namely, Telephone bill/Copy of Passport / Electricity bill/ Voter ID proof/Aadhar Card should be submitted along with the application. The address proof in respect of the firm shall be either certificate of registration or certificate of incorporation issued by the concerned authority.

3.11. Bank account details of firm along with IFS code, Branch details, and address shall be

furnished in the letterhead of the firm.

3.12. For registration with FCS & CA Department the bidder should submit above set of documents along with duly filled in application (Annexure 1), copy of DFS / Iodised Salt RFP 2017-18 with seal and signatures from page 1 to 28 and DD for Rs.1000 + Service Tax 15 %( Rs.1150) in favour of “The Commissioner Food, Civil Supplies and Consumer affairs” Payable at Bangalore towards registration fees shall be submitted

3.12.1. For registration with NCDEX e Markets Ltd (NeML) the firm has to enclose

Annexure 2, VAT/GST(AS APPLICABLE) certificate, PAN Card and Bank details with registration fees of Rs. 5000/- and Service Tax 15%, (total amounts to Rs. 5750/-) should be remitted by way of electronic fund transfer to the following NCDEX e Markets Ltd (NeML) Account for participation in e-auction. The details of fund transfer towards registration charges shall be mentioned in the application furnished vide Annexure-2.

NCDEX e Markets Ltd (NeML) Bank Account Details

3.12.2. The Commodity Participant (CP) Member of NCDEX e Markets Ltd (NeML)) who has renewed the membership for the year 2017-18 need not pay registration fee to NeML.

3.13. The application for registration with relevant Annexure can be downloaded from the

website www.ahara.kar.nic.in. Requests for forwarding applications through post / couriers will not be entertained.

3.14. The interested applicants may also visit website www.neml.in for any relevant

information regarding enrolment as participant on NCDEX e Markets Ltd (NeML) Interested participants can also contact the Customer Service Group on below phone numbers (022) 66473153/54 or Email : askus@neml.in

4. EVALUATION OF APPLICATION FOR REGISTRATION.

4.1. The completed set of applications along with relevant documents and fee / registration charges shall be submitted at the following address:

Bank Name Settlement Account IFS Code Branch Name

HDFC Bank 00990690013050 HDFC0000060 Fort, Mumbai

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SENIOR DEPUTY DIRECTOR (PDS) FOOD AND CIVIL SUPPLIES & CONSUMER AFFAIRS DEPARTMENT.

(Procurement and Distribution Section) #8, ‘Cunningham Road, 4th Floor Sahakara Bhavan Bangalore-560052.

4.2. The FCS & CA Department will scrutinize the applications and relevant documents

submitted along with the application. The selected applicants will be enrolled as registered suppliers of Iron Fortified Iodised Salt (Double Fortified Salt) Free Flow & Iron Fortified Iodised Salt (Double Fortified Salt) Coarse Crystal / Refined Iodised Salt (Free Flow) /Iodised Crystalline Salt under Public Distribution Scheme for the year 2017-18 and will be issued user ID and password of NCDEX e Markets Ltd which will enable them to participate in e-auction as per the terms and conditions.

4.3. In order to facilitate empanelment of suppliers and to encourage their participation,

the applications received after 5.00 pm of 27th February 2017 will also be accepted for empanelment. The applications received after 27th February 2017 will be scrutinized on periodic basis and the eligible suppliers will be allowed to participate in e-auctions.

4.4. Such registered suppliers are eligible to participate on electronic bidding system (e-

auction) conducted by NCDEX e Markets Ltd (NeML) as and when scheduled. The electronic auction platform will scrutinize the financial bids and bid winners will be declared based on the lowest offer in respect of specified lots for designated districts after due evaluation of competitiveness of the lowest bid and approval by FCS & CA Department.

5. SCHEDULING OF E-AUCTIONS.

5.1. Based on the requirements for implementation of the PDS scheme FCS & CA

Department will notify NCDEX e Markets Ltd (NeML) to schedule auctions on periodic basis. Further such details will be posted on the web site of FCS & CA Department (www.ahara.kar.nic.in ). Neither the FCS & CA Department nor NCDEX e Markets Ltd (NeML) will individually intimate to the registered suppliers regarding the e-auction schedule.

5.2. All registered suppliers are eligible to participate in e-auctions subject to terms and Conditions detailed in this document.

6. QUALITY PARAMETERS.

6.1. The quality parameters for Iron Fortified Iodised Salt (Double Fortified Salt) Free Flow

& Iron Fortified Iodised Salt (Double Fortified Salt) Coarse Crystal / Refined Iodised Salt (Free Flow) /Iodised Crystalline Salt are detailed below for the reference of all

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eligible suppliers. The FCS & CA Department has the right to alter the parameters at its own discretion before notifying the e-auction schedule. Unless and otherwise notified the following parameters shall be the basis for assaying of Iron Fortified Iodised Salt (Double Fortified Salt) Free Flow & Iron Fortified Iodised Salt (Double Fortified Salt) Coarse Crystal / Refined Iodised Salt (Free Flow) /Iodised Crystalline Salt.

6.2. Quality Parameter for Refined Iodized Salt

The Iodised Salt shall be procured in two variants, namely, Free flow and Crystal Form.

Quality specifications for Refined Iodized Salt (Free flow)

Refined Iodized Salt is solar/rock salt from which soluble and insoluble impurities are reduced by employing mechanical washing, centrifuging and iodizing, drying, sieving, coating with permitted ant caking agents as prescribed under the PFA Rules, 1995 and The Food Safety & Standards Act – 2006 ( FSSAI) .It should be free from visible contamination with clay, grit or other extraneous adulterants or impurities.

Quality specifications for Refined Iodized Salt (Free flow)

Characteristic Requirements for Refined Iodized Salt

Method of Test Ref. to IS7224:2006

Moisture ,%by mass, Max 0.5 Annexure-A

Water insoluble matter % by mass, on dry basis, Max

1.0

Annexure-C

Chloride content (as NaCL),%by mass, on dry basis Min.

98.5 Annexure-D

Matter soluble in water other than sodium chloride,% by mass, on dry basis, Max

1.0 Annexure-E

Calcium (as Ca),% by mass, on dry basis max.

0.15 Annexure-F

Magnesium (as mg.), %by mass, on dry basis, Max.

0.10 Annexure-F

Sulphate (as SO4), %by mass, Max.

0.60 Annexure-G

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For

Refined Iodized Salt, minimum 95 percent of the material shall pass through 1 mm

IS sieve and not more than 10 percent by mass shall through 150 micron IS sieve.

6.2.1 Quality specifications for Iodized Crystalline Salt

Iodized salt is solar/rock salt mixed with iodizing chemical and dried if required. Material shall be a crystalline solid, white or pale pink and light grey in colour. It shall be free from visible contamination with clay, grit or other extraneous adulterants or impurities under the PFA Rules,1995 and The Food Safety & Standards Act – 2006 ( FSSA) . Double Fortified Coarse Crystal size has to be between 1 mm-3mm

Quality specifications for Iodized Crystalline Salt

Characteristic Requirements for Iodized Crystalline Salt(White)

Method of Test Ref. to IS7224:2006

Moisture, %by mass, Max

6 Annexure-A

Water insoluble matter % by mass, on dry basis, Max

1.0

Annexure-C

Chloride content (as NaCL),%by mass, on dry basis Min.

96 Annexure-D

Matter soluble in water other than sodium chloride,% by mass, on dry basis, Max

3.0 Annexure-E

Calcium (as Ca),% by mass, on dry basis max.

0 Annexure-F

Iodine content, ppm, Min. Manufacturer’s Level

30 Annexure-H

Distribution channel including retail level

15 Annexure-H

Alkalinity (as NA2 CO3), %by mass, Max.

0.15 Annexure-j

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Magnesium (as mg.), %by mass, on dry basis, Max.

0 Annexure-F

Sulphate (as SO4), %by mass, Max.

0 Annexure-G

Iron Content (as Fe), mg/kg

850-1100 Parts per Million

Annexure-A

Iodine content, ppm, Min. Manufacturer’s Level

30 Annexure-H

Distribution channel including retail level

15 Annexure-H

Alkalinity (as NA2 CO3), %by mass, Max.

0.15 Annexure-j

6.2.2. The Iron Fortified Iodised (Double Fortified) Salt shall be procured in two variants, namely, Free flow and Coarse Crystal Form. For both varieties, the following specifications will be applicable.

IRON FORTFIED IODIZED SALT (DOUBLE FORTIFIED SALT) is a crushed Crystalline Solid; white or pale or pink or light grey in colour, free from contamination with clay and other extraneous adulterants and impurities. Salt used for manufacture of Iron Fortified Iodized Salt (Double Fortified Salt) shall have minimum 99.0 percent sodium chloride content on dry weight basis when ferrous sulphate is used for fortification; minimum 98 per cent sodium chloride on dry weight basis when ferrous fumigate in encapsulated form is used for fortification and moisture not more than 1.5 percent.

The Double Fortified Salt may contain food additives permitted under Appendix A and Hydroxyl propylene Methyl Cellulose, Titanium Diaoxide ,fully Hydrogenated Soya bean Oil and Sodium hexametaphosphate (all food grade) at concentration not more than GMP and anti-caking agent not more than 2 per cent on dry weight basis, and the water insoluble matter wherein anti-caking agent used shall not exceed 2.2 per cent.

The quality specifications as per IS-16232: 2014 are as follows.

Characteristic Requirement Method of Test, Reference to

Annexure IS Number

Moisture, percent by weight, max

1.5 Anx A of IS 7224

Water insoluble 1.0 A-4 of IS

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matter, percent by mass, on dry basis, Max

253

Chloride content (as NaCl), percent by mass, on dry basis, Min

97.0 A-5 of IS 253

Matter insoluble in dilute HCL, percent by mass, on dry basis, Max

0.30 A-6 of IS 253

Matter soluble in water other than sodium chloride, percent by mass, on dry basis, Max

2.5 A-7 of IS 253

Iron Content (as Fe), mg/kg

850-1100 Parts per Million

A

Iodine Content, mg/kg, Min

Manufacturers Level

30 B

Distribution channel including retail level

15

pH of 5% aqueous solution

3.5-7.5

For Iron Fortification through encapsulated ferrous fumarate

3.5-7.5 C

for other forms of Iron Fortification.

3.5- 5.5

Sulphate (as SO4), percent by mass, Max

1.1 A-9 of IS 253

Magnesium (as Mg), water soluble, percent by mass, Max

0.10 A-8 IS 253

Phosphorous (as P2 O5 ) mg/kg

D

a. For iron

fortificat

Not More than 3100

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ion

through

encapsul

ated

ferrous

fumarat

e.

b. for other

forms of

Iron

fortificat

ion

2800-3100

Sodium hexa meta phosphate, percent by mass, on dry basis, Max

1.0 E

6.3. The Successful qualified suppliers will be solely responsible for consequences for any violation of the Food Safety and Standards Act 2006 and connected rules as regards to adulteration and the Iron Fortified Iodised Salt (Double Fortified Salt) Free Flow & Iron Fortified Iodised Salt (Double Fortified Salt) Coarse Crystal / Refined Iodised Salt (Free Flow) /Iodised Crystalline Salt shall be in accordance with the parameters as specified in clause 6.2 above.

6.4. Suppliers shall be liable for any action or consequences that may arise due to non-adherence to quality parameters. Any disputes shall be settled in accordance with clause-15 as detailed below. They shall keep the NCDEX e Markets Ltd (NeML) indemnified at all times in this regard.

6.5. Apart from the above, in the event of any harm caused due to supply of bad quality,

the concerned supplier shall be held solely responsible of any losses/damages to the events arising out of such supplies under the scheme.

6.6. For every batch of supply, the assaying report shall be submitted to the Depot

Manager of the concerned Whole Sale point. The details of assaying agency and cost of assaying will be published on the web site www.ahara.kar.nic.in by way of circular before the date of e-Auction. All eligible participants shall take note of the details published in the circular before participation in e-Auction

7. ASSAYING

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7.1. FCS & CA DEPARTMENT will appoint a third-party inspection agency for assaying Iron Fortified Iodised Salt (Double Fortified Salt) Free Flow & Iron Fortified Iodised Salt (Double Fortified Salt) Coarse Crystal / Refined Iodised Salt (Free Flow) /Iodised Crystalline Salt. The quality of Iron Fortified Iodised Salt (Double Fortified Salt) Free Flow & Iron Fortified Iodised Salt (Double Fortified Salt) Coarse Crystal / Refined Iodised Salt (Free Flow) /Iodised Crystalline Salt will be evaluated based on specified quality parameters as detailed in Clause 6 or as may be notified by FCS & CA Department before scheduling e-auction on NCDEX e Markets Ltd (NeML) Platform. The samples will be drawn for every batch by the third-party inspection agency at the supplier’s location.

7.2. On preparing one batch and in multiples thereafter by the supplier of Iron Fortified Iodised Salt (Double Fortified Salt) Free Flow & Iron Fortified Iodised Salt (Double Fortified Salt) Coarse Crystal / Refined Iodised Salt (Free Flow) /Iodised Crystalline Salt, shall intimate the assaying agency well in time to depute assayer for sampling. After obtaining sample the third-party agency analyses and the report will be given on that basis along with the copy of report to be submitted to concerned Warehouse Manager, KFCSC Ltd, TAPCMS Ltd and Other Nominees. Only batches which qualify the test need to be packed and dispatched. If the production batch is not found as per prescribed quality specifications, then the Supplier has to offer the new batch for inspection. Failure to offer new batch for inspection will be deemed as violation of terms and conditions of tender and attract action as may be deemed fit.

7.3. The assaying agency shall randomly collect the samples at the depots while delivery of

consignment and get the samples evaluated. The Assayer will retain with him one sample, handover one sample to Depot Manager of KFCSC LTD, TAPCMS Ltd and Other Nominee agencies, as the case may be; and handover one sample to the representative of the supplier, if present, for retaining as control sample at unloading point. The details of seal number (i.e. the number printed on the tamperproof lock), lot number, vehicle registration number, quantity, date/time, supplier code and serial number of assaying report will be recorded on the identification label. The label has to be properly sealed with tamperproof seal to the sample bags. The results of such testing will be final and binding on the suppliers. Suppliers may note that the cost of assaying will be borne by them and such costs will be deducted while making the payment for supplies made. Testing and Certification should be carried out after unloading the consignment at the accredited warehouse KFCCSC/TAPCMS & Other Agencies

7.4. The supplier shall arrange to record tare weight and gross weight on electronic

weighbridge before loading and after loading of the consignment. The copies of weigh bridge receipt along with copy of invoice / delivery challan and assaying report shall be handed over to Depot Manager of KFCSC Ltd, TAPCMS Ltd and Other Nominees, as the case may be, at the time of giving delivery. Deliveries without valid documents will be rejected and will not be inwarded by the concerned Depot Manager.

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7.5. Consignment will be unloaded at the designated warehouse during working hours only i.e. between 10 AM and 5 PM. On arrival of the consignment the Depot Manager of KFCSC Ltd, TAPCMS Ltd and Other Nominee will verify the documents and the assaying report. On confirming the authenticity of the consignment and after being satisfied with the quality of Iron Fortified Iodised Salt (Double Fortified Salt) Free Flow & Iron Fortified Iodised Salt (Double Fortified Salt) Coarse Crystal / Refined Iodised Salt (Free Flow) /Iodised Crystalline Salt based on the assaying report, directs the representative of the supplier to arrange for recording the gross weight of the consignment on an electronic weighbridge before unloading.

7.6. The stocks which qualify the quality parameters will only be accepted and inwarded by

the Warehouse Manager as per the assaying report issued by assaying agency at the loading point. The stocks inwarded are subject to acceptance as per the assaying report issued after evaluation of samples as per Clause 7.3. Copy of assaying report (loading point) will be handed over to supplier and Depot Manger, KFCSC Ltd, TAPCMS Ltd and other Nominee, as the case may be.

7.7. After unloading, the tare weight of the truck is recorded on the same electronic

weighbridge. The copies of the Weigh Bridge receipts at the unloading point along with other documents i.e. invoice / delivery challan, assaying report and weighbridge receipts at the loading point shall be handed over to the Depot Manager of KFCSC Ltd, TAPCMS Ltd and other Nominee, as the case may be.

7.8. In case of non-availability of electronic weighbridge facility in the vicinity of the

delivery location, then the Depot Manager shall record the gross weight of the sealed carton boxes containing 1 Kilogram pouches on a random basis and also weight of the pouches with Salt on a random basis. Based on the recorded weights he shall arrive at net weight of the consignment. This process of arriving at net weight shall be followed for all the delivered lots.

7.9. Consignment shall be delivered strictly in accordance with the scheduled delivery dates as indicated in the purchase indent/order issued by concerned/authorized official, while taking delivery of consignment concerned/authorized official notified by KFCSC Ltd, TAPCMS LTD and other AGENCIES, as the case may be, will verify the documents and the assaying report. On confirming the authenticity of the consignment and after being satisfied with the quality of DFS / Iodised Salt based on the assaying report submitted by the Supplier, directs the representative of the supplier to arrange for recording the gross weight of the consignment on an electronic weighbridge before unloading in the designated warehouse.

7.10. In case if the person/official authorized by District Manager KFCSC Ltd., Secretary/

Depot Manager TAPCMS LTD, Depot Manager of Other Agencies is not satisfied with the quality of Salt supplied and not supported by proper documents of delivery then he would reject the consignment received at the designated warehouse.

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7.11. After unloading the consignment, the tare weight of the truck is recorded on the same electronic weighbridge. The copies of the Weigh Bridge receipts at the loading point, unloading point along with other documents i.e. Invoice / Delivery challan, assaying report and weighbridge receipts shall be handed over to concerned/authorized official notified by KFCSC Ltd, TAPCMS LTD, and other Agencies.

7.12. In case of non-availability of electronic weighbridge facility in the vicinity of the

delivery location, then the Depot Manager shall record the gross weight of the sealed carton boxes containing 1 Kilogram pouches on a random basis and also weight of the pouches with Salt on a random basis. Based on the recorded weights he shall arrive at net weight of the consignment. This process of arriving at net weight shall be followed for all the delivered lots.

7.13. An independent team comprising of official from KFCSC Ltd and/or TAPCMS Ltd/ Other

Nominees, and/or the Team leader of Assaying agency shall on periodic basis draw samples and send it for evaluation to both assaying agency appointed as well as PHI/CFTRI/any NABL accredited Laboratory. The findings of such analysis will be final and such stocks which are not in conformity with specified parameters shall be rejected. The payment in respect of such stocks will not be processed and Supplier will be asked to replace such stocks at his own cost. The replacement supplies will also under go assaying and if they are found not conforming to specified quality parameters then such stocks will also be rejected. Under such circumstances supplier will not have an option for redressal and the firm will be blacklisted for minimum period of 3 years from the date of notice issued. Apart from blacklisting EMD will also be forfeited.

8. PROCESS OF ELECTRONIC AUCTION SYSTEM ON NCDEX e Markets Ltd (NeML) Platform.

8.1. The NCDEX e Markets Ltd (NeML) after scrutiny of application for registration will enrol the applicants on the platform subject to certain eligibility criteria as prescribed by the exchange. They will be allotted with member ID and password.

8.2. The registered suppliers with such member ID and password are eligible to participate in the electronic bid system i.e. e-auction.

8.3. The exchange in consultation with FCS & CA Department will schedule the auctions for

each location, district and such details viz. e-auction calendar will be published on the website of FCS & CA Department (www.ahara.kar.nic.in)

8.4. The registered suppliers shall not be intimated individually regarding the e-auctions, which are scheduled by the NCDEX e Markets Ltd (NeML). However, the registered suppliers may contact FCS&CA Department, (Bangalore) for details. In addition, after every e-auction scheduled by FCS&CA Department, NeML will send the information about the e-auction through an email to each of the empaneled supplier. However,

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empaneled suppliers are advised to rely on the information published on the web site www.ahara.kar.nic.in rather than depending on email. Mere non-receipt of email will not be a valid objection for not participating in the e-auction.

8.5. The registered suppliers shall take adequate care and are solely responsible to obtain

details of the schedule of e-auctions through the website www.ahara.kar.nic.in, in their own interest, rather than depending on other mode of information sources.

8.6. The registered suppliers need to deposit 5% (Five per cent) of the value of goods as

EMD (margin money), one day prior to e auction, with the NCDEX e Markets Ltd (NeML) accounts to participate in the e auctions as given below:

NCDEX e Markets Ltd (NeML) Bank Account Details

Bank Name Bank Account Name

Settlement Account IFS Code Branch Name

HDFC Bank NCDEX e Markets Ltd (NeML)

00990690013043 HDFC0000060 Fort

State Bank of India NCDEX e Markets Ltd (NeML)

30760960198 SBIN0011777 Fort

Axis Bank NCDEX e Markets Ltd (NeML)

004010202176811 UTIB0000004 Fort,i

8.7. The bidder member should intimate NCDEX e Markets Ltd (NeML) for the transfer of funds through the Clearing and Settlement Module- (NeML) https://cstracker.nspot.in/ in the prescribed manner (Contact Customer Service Group on +91 22 66473153/54)

8.8. The bidders shall be allowed by NCDEX e Markets Ltd (NeML) to bid only if the requisite EMD amount is available in the Common EMD Account of NCDEX e Markets Ltd (NeML). The amount deposited as E.M.D (Margin Money) would determine the bidding capacity of the bidder.

8.9. Only the EMD (Margin Money) of the lowest bidder would be blocked by NCDEX e

Markets Ltd (NeML). EMD (Margin Money) of the unsuccessful Bidder(s), including those bid(s) which are not accepted due to non-fulfilment/not meeting the conditions attached to the bid(s), shall be returned by NCDEX e Markets Ltd (NeML). On the withdrawal request made by the bidder through PFM Module latest by one day from the day of close of E-Auction.

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8.10. In case, if any bid is received 3 minutes prior to the scheduled auction closing time then the auction schedule shall be extended for 5 minutes over and above the scheduled auction closing time. There shall be maximum 3 such extensions.

8.11. The bidders shall place their bids online on NCDEX e Markets Ltd (NeML)

Platform/Exchange Platform https://market.nspot.in the online trading system made available by NCDEX e Markets Ltd (NeML) as per the terms and conditions of the E-Auction.

8.12. Price to be quoted for standard quantity (please see Clause 8.13) and quality for a

particular district. The evaluation and finalization of bids received shall be made on the basis of the lowest price quoted by the bidders for the lots in respect of each district.

8.13. The price quoted shall be per Quintal basis for district wise lots and are:

a) Inclusive of all incidental expenditure, cost of assaying, transaction charges,

Cess, fee, taxes including CST and including VAT as applicable for delivery at taluka level.

b) Inclusive of cost of packing, transportation charges to wholesale points of KFCSC Ltd/TAPCMS and Other Agencies. Within the district, transit insurance and unloading charges for delivery at wholesale points of KFCSC Ltd/TAPCMS and Other Agencies at taluka level in respect of the concerned district.

8.14. The Bids of all Bidders who have participated in the E-Auction must remain valid for minimum period of 10 (Ten) working days from the date of auction.

8.15. The Bidders are required to quote in Indian Rupees per Quintal for each

auction. The FCS & CA Department may specify, if desired a ceiling price above which no bids may be accepted by NCDEX e Markets Ltd (NeML) Platform. The reducing tick size shall be Rs. 1. (Rupees one only)

8.16. During an auction session, a bidder may modify his bid downwards to a reduced value

less than the existing lowest bid. No cancellation of Bids shall be allowed during an auction session. The lowest valid bid as per Clause 8.15 received on the platform will be communicated to FCS & CA Department by NCDEX e Markets Ltd (NeML). The FCS&CA Department, shall evaluate the bids by considering aspects relating to price competitiveness and communicate regarding acceptance/rejection of the bid. The lowest valid bid once approved by FCS&CA Department, will be declared as successful L-1 bidder and the same will be communicated to the successful bidder by NCDEX e Markets Ltd (NeML). The FCS & CA Department reserves the right, without giving any reason, to accept or to reject all or any bid including lowest bid.

8.17. Evaluation and Comparison of Bids: The lowest rate (L-1) bidder/s for each district wise

quantity, from the bidders who have offered the rate on door delivery to Warehouse/storage location of KFCSC Ltd/TAPCMS/Other nominees for the respective

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district will be identified. The final results of the E-Auction as approved by FCS & CA Department are binding on all bidders. Any requests for cancellation of bids received either during the auction session or after the conclusion of an auction session shall not be accepted. Failure to accept award of supply contract by the successful supplier shall result in the forfeiture of the EMD (Margin money) and blacklisting from further participation in the e-auctions for a period of three years. The decision of the Commissioner, FCS & CA Department in this regard will be final.

8.18. Any bid placed using the bidder’s username and the password shall be deemed to be

an unconditional binding of the bidder to whom such username and the password has been allotted by NCDEX e Markets Ltd (NeML), inter-alia, for the purpose of the E-Auction and the bidder shall be solely and fully responsible for all the activities that occur under such username and password. The user is therefore advised to check the username and the password before the E-Auction and is advised not to reveal it to anyone else so as to prevent misuse of the same. It is further suggested that Suppliers are requested to change the password frequently to protect from misuse.

8.19. FCS & CA Department & NCDEX e Markets Ltd (NeML) shall not be responsible for any

failure of power, Network, Server, Bandwidth problems, Hosting Server, Internet Connectivity, ISP or otherwise or the slowness to access NCDEX e Markets Ltd (NeML) Platform/Exchange Platform https://market.nspot.in In case if e-Auctions cannot be held on scheduled date due to any of above or Server problems or any other reasons, the e-Auctions will be rescheduled and will be held on same or alternative day, the details of such date/s and time will be notified in the website www.ahara.kar.nic.in. No separate communication will be sent to eligible bidders and they are advised to check the details on the above web site.

8.20. The Invitation of Bids, the terms and conditions of the E- Auction, Bid of the Successful bidder, Letter/Email Confirmation/Acceptance issued by the Buyer (FCS & CA Department) to the successful bidder (herein after called the seller) along with any amendment issued prior to signing of contract shall constitute the Contract between the Seller and Buyer.

8.21. In case of successful bid of the supplier the EMD (margin money) will be refunded after execution of supplies by the supplier and completion of the clearing and settlement process.

8.22. In case of unsuccessful bid of the supplier the EMD (margin money) will be refunded

the next working day by the exchange. If supplier wishes to retain the EMD the same would be allowed by the exchange for participation in the subsequent e auctions.

8.23. The successful bidders will be charged transaction charges of 0.5% (half per cent) of

the traded value and ST @ 15 % as applicable by NCDEX e Markets Ltd (NeML) and such amount will be deducted while settling the payment to the suppliers. All the registered suppliers who wish to participate on the e-auction shall comply with terms and conditions of e-auction.

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8.24. The successful bidder upon receipt of communication regarding acceptance of bid by

the FCS & CA Department/ NCDEX e Markets Ltd (NeML) shall arrange to transfer an amount equivalent to 5 % (Five per cent) of the value of the order as security deposit, within 5 working days of communication by way of electronic fund transfer to any of the NCDEX e Markets Ltd (NeML) Accounts detailed below:

NCDEX e Markets Ltd (NeML) Bank Account Details

Bank Name Bank Account Name

Settlement Account IFS Code Branch Name

HDFC Bank NCDEX e Markets Ltd (NeML)

00990690013043 HDFC0000060 Fort

State Bank of India NCDEX e Markets Ltd (NeML)

30760960198 SBIN0011777 Fort

Axis Bank NCDEX e Markets Ltd (NeML)

004010202176811 UTIB0000004 Fort

8.25. NCDEX e Markets Limited (NeML) is acting only as a service provider for this e-auction and shall not be a party to the contract between the Seller and the Buyer subsequent to this e-auction. By bidding in this e-auction, a bidder acknowledges that NCDEX e Markets Limited (NeML) shall not be held responsible for any loss that he/she/they may suffer as a consequence to this e-auction.

8.26. NCDEX e Markets Ltd will be providing e-Auction platform for the purpose of price discovery. It shall not take any responsibility whatsoever in connection with any disputes that may arise during the tenure of the tender/contract. Both seller and buyer shall completely absolve NCDEX e Markets Ltd (NeML) for any consequences resulting out of this tender and further any disputes between buyer and seller shall have to be resolved by them as per Clause 15 below.

9. ORDER FOR SUPPLIES.

9.1. The short listed suppliers who qualify in e-auction for each lot / destination will be issued with purchase orders / indents by the concerned District Managers of KFCSC Ltd for the PDS wholesale Points managed by KFCSC Ltd and DEPUTY DIRECTOR, FCS & CA of the concerned District for PDS wholesale Points managed by TAPCMS Ltd and other Nominee. The purchase order to the supplier will be issued subject to payment of

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prescribed security deposit with the NeML account. The details of the district offices and locations is furnished vide Annexure-6 & 7.

9.2. The District Manager of KFCSC Ltd / Deputy Director FCS & CA of the District shall place order for such auction (Bid)quantity as informed by the Office of The Commissioner FCS & CA Cunningham Road Bangalore. However order may be placed in variation of +/- 5 (five) percent only after obtaining prior permission from Commissioner FCS & CA Department. The qualified supplier is bound to supply the ordered quantity at the designated wholesale points spread across the concerned district.

9.3. Quantities supplied in excess of the quantity specified in the purchase order will not be

paid for subject to variation of +/- one per cent. The District Manager of KFCSC Ltd/ DEPUTY DIRECTOR, FCS & CA at his sole discretion may place purchase orders/indents by FAX/ LETTER/ E-MAIL, pending execution of agreement. The successful qualified supplier is bound to honour such indents and shall arrange to supply requisite quantity of DFS / Iodised Salt to the designated locations. Suppliers shall be intimated regarding the acceptance of their bid by way of declaration of e auction results by FCS AND CA department through e mail by NCDEX e Markets Ltd (NeML). The supplier shall take all necessary steps to commence the production, packing, assaying, and dispatch of the tendered quantity at the approved rate and complete the delivery to the respective wholesale points within twenty (20) days from the date of indents issued by concerned agencies. For the purpose of entering into agreement with concerned Agencies the suppliers shall be issued with a purchase order/indent subject to remittance of security deposit.

9.4. The suppliers are required to enter into an agreement on Rs 200/- non-judicial stamp paper with the concerned District Managers to fulfill the contractual obligations as specified by the KFCSC Ltd. The draft format of agreement is furnished vide Annexure-4. In case of TAPCMS and Other Agencies Suppliers has to enter into agreement individually for each designated TAPCMS and Other Agencies. The draft format of agreement is furnished vide Annexure-5. Agreement not accompanied by document/proof of having remitted the Security Deposit to NCDEX e Markets Ltd (NeML) Account, any alterations to clauses of the agreement will not be accepted and will be deemed as non-submission of agreement and violation of the terms and conditions of Tender. Agreement not accompanied by document/proof of having remitted the Security Deposit to NCDEX e Markets Ltd (NeML) A/c, any alterations to clauses of the agreement will not be accepted and will be deemed as non-submission of agreement and violation of the terms and conditions of Tender.

9.5. Violation of any of the Clause/Clauses of the Agreement shall be deemed as violation of Terms and Conditions of Tender.

9.6. Security Deposit furnished by the qualified suppliers will be returned on request upon

completion of the contract period or the extended period, if any, subject to

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satisfactory performance or execution of the contract as per the Terms and Conditions of Tender.

9.7. Non-remittance of security deposit within five working days of declaration of e-auction

results will amount to forfeiture of EMD (margin money) deposited along with blacklisting from participating in the subsequent e-auctions for a period of three years.

9.8. Default in supplies either wholly or partly on account of quality or quantity or delay in

supply will result in forfeiture of security deposit and EMD (margin money).

9.9. At any stage of supplies under the scheme; if it is noticed that the supplies are not in conformity with the specifications prescribed, such materials are liable to be rejected and qualified supplier will be called upon to make good the same. In the event of qualified supplier failing to make good the rejected stocks, the security Deposit and EMD (margin money) furnished by the qualified supplier shall be forfeited and action under the existing laws will be initiated to recover such losses.

9.10. In case of non-supply of stocks within the specified time limits as per purchase

order/indent, FCS & CA Department is at liberty to purchase the item from other alternative sources or initiate re e-Auction and recover the difference of cost from the supplier who has defaulted.

10. TERMS AND CONDITIONS OF DELIVERY.

10.1. The successful suppliers should take adequate precautions to prevent damage or deterioration to Iron Fortified Iodised Salt (Double Fortified Salt) Free Flow & Iron Fortified Iodised Salt (Double Fortified Salt) Coarse Crystal / Refined Iodised Salt (Free Flow) /Iodised Crystalline Salt during storage/transportation. Supplier should also insure the stock during transit at his cost.

10.2. The successful suppliers should give delivery of stocks at his cost the Iron Fortified Iodised Salt (Double Fortified Salt) Free Flow & Iron Fortified Iodised Salt (Double Fortified Salt) Coarse Crystal / Refined Iodised Salt (Free Flow) /Iodised Crystalline Salt to the designated wholesale points of KFCSC, TAPCMS & Other Agencies of the respective district. Supplier shall bear all such costs as per Clause 8.13 (a) and (b). Supplier is bound to honour such indents and shall arrange to supply requisite quantity to the designated warehouse locations. Suppliers shall be intimated regarding the acceptance of their bid by way of declaration of e-auction results by FCS&CA Department, through e mail by NCDEX e Markets Ltd (NeML). The supplier shall take all necessary steps to commence the production, packing, assaying and dispatch of the tendered quantity at the approved rate and complete the delivery to the respective wholesale points within twenty (20) days from the date of issue of indent by concerned agencies.

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10.3. Consignment shall be delivered strictly in accordance with the scheduled delivery period as per clause 9.3, while taking delivery of consignment concerned/authorized official notified by KFCSC Ltd, TAPCMS LTD and other AGENCIES, as the case may be, will verify the documents and the assaying report. On confirming the authenticity of the consignment and after being satisfied with the quality of DFS / Iodised Salt based on the assaying report submitted by the Supplier, directs the representative of the supplier to arrange for recording the gross weight of the consignment on an electronic weighbridge before unloading in the designated warehouse.

10.4. In case if the person/official authorized by District Manager KFCSC Ltd., Secretary/

Depot Manager TAPCMS LTD, Depot Manager of Other Agencies is not satisfied with the quality of DFS / Iodised Salt supplied and not supported by proper documents of delivery then he would reject the consignment received at the designated warehouse.

10.5. After unloading the consignment, the tare weight of the truck is recorded on the same

electronic weighbridge. The copies of the Weigh Bridge receipts at the loading point, unloading point along with other documents i.e. Invoice / Delivery challan, assaying report and weighbridge receipts shall be handed over to concerned/authorized official notified by KFCSC Ltd, TAPCMS LTD, and other Agencies.

10.6. In case of non-availability of electronic weighbridge facility in the vicinity of the

delivery location, then the Depot Manager shall record the gross weight of the bag on a random basis. Based on the recorded weights he shall arrive at net weight of the consignment duly deducting weight of the boxes.

10.7. The successful supplier should pack the Iron Fortified Iodised Salt (Double Fortified

Salt) Free Flow & Iron Fortified Iodised Salt (Double Fortified Salt) Coarse Crystal / Refined Iodised Salt (Free Flow) /Iodised Crystalline Salt in minimum 60 Micron / 220 to 230 gauge POLY PACK FOOD GRADE L.D.P.E film material and 25 packets of such 1 Kilogram should be packed in new 25 Kg HDPE WOVEN SACK bag duly machine stitched. The text of the matter to be printed / pasted on each bag shall contain the following details for respective variety of Salt. Suppliers shall mention the variety as supplied, namely, free flow or coarse crystal in respect of DFS or Iodised Salt.

Double Fortified Salt Free Flow/Coarse crystal

Refined Iodised Salt Free Flow/Crystalline Salt

GOVERNMENT OF KARNATAKA

Double Fortified Salt Free Flow/Coarse crystal

UNDER PUBLIC DISTRIBUTION SYSTEM SCHEME, 2017-18

SUPPLIER CODE/user id ………………………….BATCH No………………………….

DATE OF PACKING …………………….

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10.8. The Art work for packing in one Kilogram packet with multicolour printing as per FCS&CA Department design in one Kilogram packet shall be provided to the supplier. The artwork for FCS&CA design packet will be uploaded on the web site www.ahara.kar.nic.in,The interested parties may download the art work from the web site.

10.9. The supplier shall get the printed packets, approved by the Office of Commissioner,

FCS&CA Department, Bangalore before commencing the production. They may contact Senior Deputy Director (PD) for necessary approval.

11. TERMS OF PAYMENT.

11.1. After satisfactory supply of the tendered items by the successful bidder within the stipulated time, 80 % of payment will be released by respective District Managers of KFCSC Ltd through NCDEX e Markets Ltd (NeML) by electronic fund transfer to the respective account of supplier within 10 working days from date of submission of bills with relevant documents to the respective wholesale points managed by KFCSC Ltd. The balance 20 % will be released by KFCSC Ltd to the respective account of supplier through NCDEX e Markets Ltd (NeML) by electronic fund transfer within 25 working days from the date of submission of bills and completion of necessary audit with satisfactory assaying report. In respect of TAPCMS Ltd and other nominees the payment to suppliers will be released through NCDEX e Markets Ltd (NeML) by electronic fund transfer to the respective account of supplier upon completion of supply, submission of bills and duly acknowledged by the respective TAPCMS/other nominees within 10 working days from the date of supply confirmation.

11.2. The payment is processed based on the accepted quantity at the designated warehouse/s of KFCSC Ltd/TAPCMS/Other nominee agencies, quality report by third party assaying agency appointed by FCS & CA Department, and is subjected to any standard deductions as specified in the purchase order/indent.

GOVERNMENT OF KARNATAKA

Refined Iodised Salt Free Flow/Crystalline Salt

UNDER PUBLIC DISTRIBUTION SYSTEM SCHEME, 2017-18

SUPPLIER CODE/user id ………………………….BATCH No………………………….

DATE OF PACKING …………………….

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11.3. The supplier shall submit the following documents while giving delivery of the consignment to the designated warehouse/s of KFCSC /TAPCMS & OTHER AGENCIES.

a. Commercial Invoice b. Copy of Assaying Report (issued by third party assaying agency), at the

loading point c. Electronic Weighbridge Receipts at loading point and unloading point

(if electronic weigh bridge facility is available at loading/unloading point)

d. Acknowledgement copy for having taken delivery by concerned/authorized official of KFCSC /TAPCMS / OTHER AGENCIES.

On completion of supply to all the wholesale point of the District, the supplier shall submit the following documents to concerned District Manager of KFCSC Ltd to process for payment:

1) Copy of wholesale wise Invoice (Sales Bill) 2) Load wise\truck wise Delivery challan with proper serial numbers, date of

delivery, Indent number with date, Name of the depot, vehicle number, name of the items and quantity delivered.

3) If the delivery of stock is more than one truck to a particular wholesale point, the invoice should contain all the delivery note number in one invoice.

4) Stock receipt issued by Wholesale point 5) Assaying Report at the loading point. 6) Electronic Weighbridge Receipts at loading point and unloading point(if

electronic weigh bridge facility is available at unloading point)

A set of documents mentioned above should be produced to District Manager on completion of delivery to the wholesale point of the concerned district. The supplier should also make an arrangement to submit a statement to the District Manager by courier or in person in the prescribed format. The suppler can thereby collect the acknowledgement on the presentation of the below duly filled format.

From: M\s. To : District Manger – KFCSC………… Indent number with date Sl No.

Invoice No.

Date Name of wholesale points

Item Qty supplied

(in Metric Tons)

Amount Stock receipt no.

Delivery Challan NO.

REMARKS

1

2

TOTAL

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Place: Date: Contact person name with mobile number:

11.4. The payment will be directly released through Electronic Fund Transfer to the respective Bank Account of the qualified suppliers within seven working days by respective District Managers of KFCSC Ltd, TAPCMS Ltd, Other Nominee, as the case may be, through NCDEX e Markets Ltd (NeML) platform

12. PENALTY CLAUSE

12.1. In case if the supplier fails to complete the supplies in time as per indent, the concerned buying agencies, namely KFCSC Ltd, TAPCMS or other nominees in consultation with and as per the directions of FCS&CA Department, shall cancel the order for non-supplied quantity, mentioned in the purchase order. The FCS & CA department shall proceed with the purchase of the same item from the open market or has the discretion to re auction the desired quantity through NCDEX e Markets Ltd(NeML). The difference in cost if any, for procurement of Iron Fortified Iodised Salt (Double Fortified Salt) Free Flow & Iron Fortified Iodised Salt (Double Fortified Salt) Coarse Crystal / Refined Iodised Salt (Free Flow) /Iodised Crystalline Salt from the above alternative sources will be recovered from the defaulted supplier by initiating legal action. EMD will be forfeited and FCS & CA Dept. may also proceed with blacklisting of the firm depending on the gravity of the situation. Black listing will be for a period of three years from the date of said order and the agency will be barred from participating in any tender of FCS&CA for that period. In addition to this, in case of any false/wrong documents are submitted as per clause 3, the FCS&CA Department, shall have the right to cancel the agreement.

12.2. Failure to keep up the supply schedule by the qualified supplier will result in levy of penalty of Rs.50/- (Rupees Fifty only) per day per Metric Ton for a delay of ten days. Any further delay in excess of 10 days a penalty of Rs. 100/- (Rupees Hundred only) per day per Metric Ton will be levied for next ten days. If the supply is not completed during the said period, Supply acceptance /rejection with penalty is at the sole discretion of The Commissioner -Food Civil Supplies & Consumer Affairs ,Karnataka. If the situation so warrants The Commissioner -Food Civil Supplies & Consumer Affairs, Karnataka may ask to supply the goods without any extension failing which action will be initiated as per clause 12.1 above

13. CANCELLATION OF AGREEMENT:

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13.1. The supplier, if breaches any condition or clause of the agreement the FCS & CA Department is entitled to cancel the agreement and also entitled to demand and recover the loss incurred to it due to such cancellation/termination of the agreement.

13.2. If the Government scheme is closed or partly revised or modified, due to accidental decision of State/Central Government or any amendment and the proceedings of purchase is stopped or revised or modified by FCS & CA Department then the agreement will automatically come to an end or partly continues for which supplier is not entitled to demand/receive any type of loss amount or cannot initiate any legal proceedings against FCS AND CA Department.

14. FORCE MAJEURE:

Should any of the force majeure circumstances, namely act of God, natural calamity, fire, Government of India Policy or Karnataka State Government’s Policy, restrictions (excluding any stock limits), strikes or lock-outs by workmen, war, military operations of any nature and blockades preventing the Seller/Buyer from wholly or partially carrying out their contractual obligations, the period stipulated for the performance of the Contract shall be extended for as long as these circumstances prevail, provided that, in the event of these circumstances continuing for more than three months, either party shall have the right to refuse to fulfill its contractual obligations without title to indemnification of any losses it may thereby sustain. The party unable to carry out its contractual obligations shall immediately advise the other party of the commencement and the termination of the circumstances preventing the performance of the contract. A certificate issued by the respective Chamber of Commerce shall be sufficient proof of the existence and duration of such circumstances.

15. ARBITRATION:

15.1. In case of any disputes relating to supplies including the interpretation of any of the Clause/Clauses of the tender/agreement, the matter shall be referred to Commissioner, FCS & CA Department. In case if disputes are not resolved then matter may be referred to Secretary to Government, Department of Food, Supplies and Consumer Welfare, Government of Karnataka who will be the appellate authority.

15.2. In case of any disputes relating to supplies including the interpretation of any of the Clause/Clauses of the agreement not resolved as per Clause 14.1, the matter shall be referred to a sole arbitrator not less than the rank of Secretary to Government of Karnataka, appointed by the Government. The remuneration for the arbitrator shall be fixed by the Government. The arbitration shall be held in Bangalore and the decision of the arbitrator shall be final and binding on both parties to the arbitration. The arbitration will be conducted in accordance with arbitration and conciliation Act, 1996.Court situated in Bangalore to the exclusion of all other courts in India, only shall have the jurisdiction in the matter.

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We agree to the above terms and conditions specified in Clause 1 to 15. Signature of the applicant. Name: Date: Address and Seal: Place:

Sr.Deputy Director (pd)

FCS & CA Dept Bangalore.