ANDHRA PRADESH STATE

A AGRO INDUSTRIES DEVELOPMENT CORPORATION LTD
(A GOVT. UNDERTAKING)
Regd.Office:No.504, Hermitage Office Complex, Hill Fort Road, Hyderabad-500004
Grams: ‘AGROS’ Fax:040-23394234 Phones:23391331, 23314246, 23317225
E.Mail: .

No. Agros/FMD/2012-13. Dated 24.5.2012

To

The Manufacturers/Importers empanelled in the List.

Sir(s),

Sub: Subsidy schemes of Department of Agriculture-Communication of Agreement

proforma and guidelines and subsidy amounts given by the Commissioner &

Director of Agriculture.

***

We enclose herewith the guidelines issued by the Commissioner & Director of Agriculture along with the subsidy set by the Department of Agriculture for each implement/equipment etc., under Farm Mechanization 2012-13 in a revised implementation process.

We also enclose herewith the proforma of Agreement to be executed and notarized on Rs. 100/- non-judicial stamp paper by all the manufacturers/importers mentioned in the enclosed booklet.

As informed in the Tender schedule the manufacturers/importers and their authorized dealers have to pay the performance Guarantee Deposit as detailed below

S.N / Category of Equipment / Performance Guarantee
Deposit to be paid by the manufacturer/importer(Rs.) / Performance Guarantee
Deposit to be paid by the
Authorized dealer(Rs.)
1 / Land Preparatory & Sowing/planting
Equipment including Rotavators/Seed
drills / 50,000 / 50,000
2 / Power Tillers & Small Tractors / 2,00,000 / 25,000
3 / Plant protection Equipment / 1,00,000 / 50,000
4 / Inter cultivation & Post Harvest
Equipment / 1,00,000 / 50,000
5 / Supply of individual & Package of
machinery for establishment of
Custom Hiring center for SMSRI,SSI,Maize,Groundnut,Cotton
Etc.,crops / Bank Guarantee for
Rs.20.00 lakhs/Rs. 5.00 lakhs/ 35.00 Rs 35.00 lakhs as per tender
Schedule / -----

You are requested to send the agreement on Rs. 100/- non-judicial stamp paper duly signed and notarized within 10 days along with the final list of authorized dealers duly enclosing the performance Guarantee deposit of the dealers duly mentioning their area of operation, TIN number, Bank particulars for transfer of subsidy amount through RTGS so as to send the same to the Commissioner & Director of Agriculture. No further addition of further dealers are allowed after submission of the agreement. The manufacturer/importer/authorized dealers who have already paid performance guarantee deposit in previous tenders as mentioned in the respective tender schedule need not pay the same again. The Agreements received with insufficient performance Guarantee deposits/information will not be communicated to the Commissioner & Director of Agriculture.

It was mentioned in the Tender schedule I for Land preparatory & sowing/planting equipment and schedule III for supply of Inter cultivation & postharvest equipment that the manufacturer should have Annual Turnover of Rs. 10.00 lakhs for SSI units and Rs. 20.00 lakhs for other firms. Hence, all the manufacturers of Land preparatory & sowing/planting equipment and Inter cultivation & Post Harvest equipment are requested to submit a certificate from the concerned Commercial Tax Officials in proof of having Turnover of Rs. 10.00 lakhs for SSI units and Rs. 20.00 lakhs for other firms for two years ie., 2010-11 and 2011-12 along with the Agreement without fail.

As already informed in the Tender Schedule, the subsidy amount will be transferred to the Bank account of the supplier through RTGS. Hence, you are requested to furnish the following information of your firm/your authorized dealers along with the Agreement.

Full name of the supplier registered
with the Bank
Name of the Bank
Name & place of the Branch
Account Number of the supplier
RTGS No.

Thanking you,

Yours faithfully,

For APSAIDC Ltd.,

Sd/-24.5.2012 VICE CHAIRMAN AND MANAGING DIRECTOR

Enc: a.a.

(To be executed on Rs. 100/- non-judicial stamp paper to be notarized)

AGREEMENT

THIS AGREEMENT made on this …… day of …….. Two Thousand twelve between Andhra Pradesh State Agro Industries Development Corporation Limited herein after called APSAIDC Limited having its registered Office at 504, Hermitage office Complex, Hill Fort Road, Hyderabad-500 004 which expression shall where the context so admits includes their successors in interest and representative of the First Part represented by Manager(AE) of APSAIDC Limited., authorized to enter into the agreement and M/s……………………………………………………………. represented by its ………….(Managing partner/proprietor etc.,) Sri. ………………, S/o. …………………….. aged ……. years, herein after called company which expression shall, unless repugnant of the subject or context thereof mean and includes its successors, administrators and assignees of the Second Part.

PREAMBLE

WHEREAS APS. Agro. Ind. Dev. Corp. Ltd. (APSAIDC Ltd) is a State Government undertaking and Govt. of A.P has appointed AP Agros as a Nodal Agency for procurement of Land preparatory, seed sowing/planting equipment, Plant protection equipment, Inter cultivation & Post harvest equipment and Individual and package of High cost machinery etc under various subsidy schemes of Department of Agriculture.

AND

WHEREAS, Commissioner & Director of Agriculture Government of Andhra Pradesh requested APSAIDC Ltd to undertake distribution of Land preparatory, seed sowing/planting equipment, Plant protection equipment, Inter cultivation & Post harvest equipment and Individual and package of High cost machinery etc., to farmers in Andhra Pradesh state for implementing various subsidy schemes.

WHEREAS APSAIDC Ltd floated Tenders for supply of the above from the manufacturers/importers of Land preparatory, seed sowing/planting equipment, Plant protection equipment, Inter cultivation & Post harvest equipment and Individual and package of High cost machinery etc

WHERE AS the Company having participated in tender process conducted by APSAIDC Ltd hereby agreed to supply Land preparatory, seed sowing/planting equipment, Plant protection equipment, Inter cultivation & Post harvest equipment and Individual and package of High cost machinery etc., as per specifications mentioned in tender schedule under Government subsidy schemes as per the mutually agreed terms & conditions.

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

1)  The Company agreed to give a warranty of minimum one year for the above Land preparatory, seed sowing/planting equipment, Plant protection equipment, Inter cultivation & Post harvest equipment and Individual and package of High cost machinery etc.,. Repairs/Replacements/Servicing shall be attended free of cost within the warranty period within 7 days after receipt of complaint from the beneficiary and the transportation charges are to be borne by the supplier.

2)  The Company agreed to provide after sales and service to the beneficiaries at free of cost for one year.

3)  The Company agreed to pay the performance Guarantee deposit as mentioned in the Tender schedule by way of demand draft in the name of A.P. State Agro Industries Development Corporation Limited, payable at Hyderabad along with agreement if not paid previously. The authorized dealers of the firms will have to pay the performance Guarantee deposit (if not paid already) to empanel their firm as authorized dealer.

4)  The Company agreed for converting EMD remitted by them towards Performance Guarantee and shall be refunded only after proper fulfillment of supplies after successful performance as per the agreement. This performance guarantee does not carry any interest.

5)  The Company agreed that in case of non fulfillment of the obligation of supply of implements/machinery etc., as per beneficiary choice and as per the orders/specifications/quality, their performance guarantee shall be forfeited besides initiation of criminal action and Failure to supply the equipment due to price variation will attract blacklisting of the firm and shall not be allowed to participate in the tender process for a minimum of 3 years under any subsidy schemes or in any project of Department of Agriculture.

6)  The APSAIDC Ltd., here by declare that the land preparatory implements & planting equipment etc., sold under this agreement shall be the best quality and working and shall be strictly in accordance with the specifications. The Company here by guarantee, that the said implements/equipment would continue to conform to the description and quality as per the specifications.

7)  The agreement is valid up to 31.3.2013.

8)  The beneficiary will place orders on the Company or their authorized dealer for the required quantity of land preparatory implements & planting equipment etc., for supply to farmers and the Company or their authorized dealer will ensure the supply of the same immediately after receiving non-subsidy Demand Draft from the beneficiary.

9)  The APSAIDC LTD is at liberty to impose any quality check measures from time to time in the interest of Farming Community.

10)  In the event of any failure to supply the indented quantity on time after receipt of non-subsidy Demand Draft or in the event of the equipment failing to conform to the specifications on quality, the APSAIDC LTD., has right to black list the company apart from forfeiture of performance Guarantee deposit at any stage of contract, besides initiating suitable legal action.

11)  The Company has agreed to arrange the supply of the indented quantity of land preparatory implements & planting equipment etc., as per technical specifications indicated in tender document to the beneficiary at Mandal Headquarter.

12)  The Company has agreed to pay Liquidated damages levied at the rate of 0.5% of the total value of work per week up to a maximum of 5% in case of default in the supply of implements/machinery etc., as per schedule.

13)  The company has agreed for not delivering the implements/machinery etc., without valid purchase order from beneficiary.,

14)  The Company has agreed for providing detailed operational and maintenance manuals and to show the demonstration of the implement/equipment to the beneficiary at the time of delivery and to educate the beneficiary on do’s and don’ts of operation and the cost for such demonstration should be borne by the supplier

15)  The company has agreed to fix for all implements a metal/aluminum sheet (size 4”x 2”) on the implement/equipment in a prominent place with the details in TELUGU language and also to mention a reversible sticker where the fixation of aluminum sheet is not possible as per the terms and conditions mentioned in the tender schedule .

16)  In case of supply of plant protection equipment, the High pressure knapsack sprayers, Power operated sprayers and portable engine mounted sprayers should be with(i)unique identification number(embossing/engraving/on the engine and pump and (ii) country of origin should be moulded/embossed/engraved on the engine body as mentioned in the Tender Schedule.

17)  The company has agreed for the following terms of payment:

a) Payment of non-subsidy shall be made by the beneficiary by Demand Draft directly in the name of the company/authorized dealer.

b) Subsidy amount shall be released to the supplier by APSAIDC Ltd, Hyderabad within a maximum period of 90 days to their Bank account through RTGS/NEFT/DD after submission of invoice, utilization certificate along with photograph of beneficiary along with the implement/equipment taken on the day of supply if there is no complaint in working of machinery. If there is any complaint on working of machinery, the payment will be made after rectification of defects. The photograph should contain the date and time.

( NOTE: If there is any changes in terms & conditions, the same will be intimated to the suppliers)

18)  The APSAIDC Ltd has every right to cancel the agreement without issuing notice incase agreement entered by impersonation or misrepresentation and playing fraud by the Manufacturer.

19)  In case of any disputes/difference arising out of the agreement between the two parties relating to any aspect of the agreement, the parties should attempt to settle the dispute through mutual and amicable discussions. If the dispute is not settled through such discussions, the matter shall be referred / settled as per Arbitration & Conciliation Act.1996.

20)  Any notice or communication or letter addressed to the addresses of either parties mentioned in this agreement is deemed to be sufficient notice for all purposes of this Agreement.

21)  The place where this agreement is implemented, it is mutually under taken and agreed by and between the parties and this agreement shall be deemed to have been entered by the parties concerned at Hyderabad and the courts of law situated at Hyderabad only shall have the jurisdiction to entertain the said litigation arising out of this Agreement.

22)  Any Taxes levied or leviable will be borne by the Company. In the event of non payment of any Taxes / statutory dues, the APSAIDC Ltd shall have the right to recover the same from the Company.

IN WITNESS WHERE OF the APSAIDC LTD and the Company have hereunto set their hands the day, month and year first before written.

(to be filled in by APSAIDC LTD.,)
for APS Agro. Ind. Dev. Corp. Ltd
Signature:
Name:
Address:
WITNESSES
1.
2. / (to be filled in by the firm)
Name of the firm
Signature of the
authorized person:
Name:
Address:
WITNESSES
1.
2.