1 Government of India(Bharat Sarkar) Ministry of Railways(Rail Mantralaya) (Railway Board) No.20 L2/RS(PF & EC)-142/Coaches/TWL/3 New Delhi, dt. .3.2012 M/s Titagarh Wagons Ltd., 39, Shakespeare Sarani, Premlata, 4th Floor, Kolkata-700 017. Dear Sirs, Sub: Fabrication and supply of MEMU coaches Ref: (i) Ministry of Railways Tender No.2007/RS(PF & EC)-142/Coaches/2 Opened on 30.11.2007; (ii) Your offer No. TWL/RB/MEMU-Coaches/2007-08/001 dated 29.11.2007; (iiii) Your Revised Offer No.TWL/RB/MEMU-Coaches/10-11/20 dated 16.8.2010 (iv) Ministry of Railways" letter No. 2007/RS(PF & EC)- 142/Coaches/2 dated 27.1.2012; (vi) Your Acceptance No. TWL/MEMU/2011-12/036 dated 31.1.2012 & No.TWL/MEMU/2011-12 dated 27.2.2012. The President of India, acting through the Executive Director, Railway Stores(S), Ministry of Railwa is(hereinafter called the 'Government') is pleased to place a regular order on you for fabrication and supply of the iiollowing Mainline Electric Multiple Unit(MEMU) coaches on the terms and conditions stated below: 2. DESCRIPTION, SPECIFICATION, QUANTITY ORDERED AND PRICE S.No. Item Type of MEMU Specification Quantity Fabrication Cost inclusive No./Year of coach ordered of Taxes and Duties and RSP inclusive of the cost of components to be procured by the contractor (per coach Rs.) (1) (2) ( 3 ) (4) ( 5) (6) 1. 900/2011-12 H Motor Coach Particular Specification 24 Nos. Rs.1,44,06,217/-(Rs. One No.RDSO/2006/CG/B- (Twenty crore, forty four lakhs, six 06(Rev.1) of March, Four Nos.) thousand, two hundred 2007 for and seventeen only) 2. 901/2011-12 Trailer Coach :1250 mm wide 4-car unit 72 Nos. Rs.63,86,261/- MEMU Rolling Stock for (Seventy (Rs. Sixty three lakhs, Procurement through two Nos.) eighty six thousand, two Open Tender hundred and sixty one (BG-1676 mm) only) issued by Research Designs and Standards Organisation, Manak Nagar, Lucknow. 1 2 2.1 Price per rake comprising Two Motor Coaches and Six Trailer Coaches works out to Rs.6,71,30,000/-(Rs.Six crows, seventy one lakhs and thirty thousand only). 2.2 The MEMU coaches shown in Column 5 of the above table shall be delivered in 8-car rake in the ratio of 2:6 for Motor and Trailer coaches respectively. 2.3 Full testing of the MEMU coaches; shall be done in the contractor's premises before dispatch so that the MEMU rake is fit to run safely in all respects from the firm's premises to the Railway. 2.4 The place of fabrication shall be at Titagarh Wagons Ltd. Heavy Engineering Division, Hindmotor, District Hooghly, West Bengal. 2.5 Place of delivery shall be F.O.R. at Contractor's works's siding at Hindmotor Works(Heavy Engg.Division), Hindmotor, West Bengal. 3. DESIGN DRAWINGS AND TECHNICAL GUIDANCE 3.1 An agreement shall be signed in the prescribed format between RCF, Kapurthala and the contractor for obtaining design, drawings and technical guidance for fabrication of MEMU coache ,, and to protect the proprietary drawings that are handed over to them. A copy of the said agreement, duly attested by a Gazetted Officer from RCF, Kaptirthala shall be submitted by such contractor(s)/firm(s) to their Paying and Inspecting authorities failing which inspection and/or payment of MEMU coaches fabricated shall not be done. 3.2 The drawings and technical details would be provided free of cost by RCF but the incidental expenses connected with preparation and printing of drawings and cost of booking staff etc, as well as all Governmental applicable charges relating to or arising out of the agreement or of any rights in the form of permits, stamp duties, registration fees, contribution or taxes of any governmental or local law or any decree would be realized from the contractor at actuals. 4. TOTAL VALUE OF THE CONTRACT The total value of the order comprising Twelve rakes(Twenty four Nos. Motor Coaches and Seventy two Nos. Trailer Coaches) works out to Rs.80,55,60,000/- (Rs. Eighty crores, fifty five lakhs and sixty thousand only) plus Excise Duty on cost of free supply items, as indicated below. S. TAXES AND DUTIES 5.1 Rate is inclusive all taxes and duties as applicable on works contracts in the State of West Bengal on the date of issue of this contract. However, Excise Duty payable on the cost of free supply items will be reimbursed to you. Cost of free supply items(steel, electrics and wheelsets) will be intimated later. 5.2 The contractor while claiming the payment for MEMU coaches shall furnish the following certificate to the Paying Authority: "We hereby declare that additional set offs/input tax credit to the tune of Rs. has accrued and accordingly the same is being passed on to the purchaser and to that effe(t the payable amount may be adjusted." 5.3 The payments made to the Contractor shall be subject to deduction of tax at source as applicable to works contracts in accordance with West Bengal Value Added Tax Act, 2003 read with rules made thereunder. 2 3 6. FREE SUPPLY ITEMS 6.1 The prices indicated in Column 6 of table at Clause 2 above are exclusive of the cost of following items which will be issued to the Contractor by the Government as 'free supply' items F.O.R. Contractor's works' siding, if any, or the nearest Railway Station. Lead and lift from this place to the site of work shall be to the Contractor's account: (1) Steel raw material as per Schedule at Annexure VI; (ii) Electric Traction Equipments as per Schedule at Annexure VII; and (iii) Wheelset assembly without bearing. 6.2 Steel will be procured and supplied by Director, Railway Stores(I&S), Railway Board, Kolkata, within the ceiling as per prescribed schedule. Steel other than those included in the free supply schedule has to be arranged by the contractor at his own cost. No reimbursement to be made by Railways for procurement of such steel. Contractor will have to render the accountal regularly as per proforma in use and advised by Director, Railway Stores(I&S), Railway Board. 3 Koilaghat Street, Kolkata. The Government reserves the right to alter this ceiling (as per prescribed schedule) in case steel is supplied in sizes different than those on which present Annexure VI is based. Scrap arising, will be retained by the Contractor. 6.3 Allocation of wheelsets and electrics will be done by the Government subject to the contractor furnishing the prescribed Indemnity Bond. Regular accountal will have to be furnished for these items to Railway Board in the required manner. 6.4 Contractor is requil ed to furnish Bank Guarantee Bond for steel to be supplied by President of India in terms of clause 1(b) of the Special Conditions of Contract. 6.5 The said Bank Guarantee shall incorporate reference of this contract. Value of the Bank Guarantee Bond will be normally 4 months' stock limit of steel. Government, however, reserves the right to increase this value at any time during currency of the contract. The stock of steel with the Contractor at any point of the time should not exceed the limit of Bank Guarantee Bond. If at any time it exceeds the value of the Bank Guarantee Bond, then Bank Guarantee Bond to cover this excess value should immediately be furnished by you. This Bank Guarantee Bond shall be valid for 3 months beyond the scheduled delivery date in the contract. 6.6 Planning of steel would start only after getting the requisite Bank Guarantee Bond to the satisfaction of the concerned authorities. Thi ,, Bank Guarantee Bond will be released only after finalization of completion report of steel. 6.7 Contractor should submit completion report of DRS(I&S), Railway Board, Kolkata, within 3 months of completion of supplies, duly vetted by RDSO/RITES. 6.8 Planning of other free supply items i.e. Wheelsets and electrics will be done by Railway Board and will start only after submission of Indemnity Bond by the contractor. Planning will be done in such a way that stock of these items with contractor do not exceed the value of Indemnity Bond. Completion report for these free supply items will have to be submitted by the contractor in the proforma prescribed by the Government. 6.9 Accountal of all free supply itmes is required to be furnished on monthly basis in the proforma prescribed by the Government. 3 4 6.10 The Contractor shall follow the exact contractual provisions laid down in the Special and Additional Special Conditions of Contract relating to supply, accountal and market purchase of free supply steel and shall provide such further and additional accounts and other details as may be required by the Government from time to time. 6A. TRANSPORTATION OF FREE SUPPLY WHEELSETS The contractor shall be free to collect the free supply wheelsets from the nominated Railway workshop(s). In the event free supply wheelsets are transported by the contractor from the nominated Railway workshop to their premises, reimbursement of cost of transportation will be made to them against documentary evidence at actuals limited to road/rail freight charges, whichever is less, subject to the following conditions: (I) The claim should be supported by a certificate from the Commercial Deptt. of the concerned Zonal Railway about rail freight applicable; (ii) Detention charges for the carriers at the nominated Railway workshop or en-route will not be reimbursed; (iii) All local charges such as Octroi Duty or any other incidental expenses will be borne by the contractor; (iv) The contractor shall be fully responsible for the safety of the goods while in transit notwithstanding any insurance made therefor.