KARNATAKA FOOD AND CIVIL SUPPLIES CORPORATION LIMITED

No.16/I, ‘AharaBhavan’ Millers Tank Bed Area, Vasanthanagar, Bangalore-560052.

e-Mail: &

Phone: 080-22267052, 22096555

Fax: 080-22266299

REQUEST FOR PROPOSAL

Empanelment of suppliers for supply of RBD Palmolein Oil under Public Distribution SystemScheme of Government of Karnataka for 2016-17under e-procurement mode

KARNATAKA FOOD AND CIVIL SUPPLIES CORPORATION LTD

No.16/I, Millers Tank Bed Area, Vasanthnagar, Bangalore-52

INDEX

Introduction

1. Scope of work / 1.1 to 1.7
2. Eligibility/Prequalification conditions / 2.1 to 2.10
3. List of the documents to be furnished / 3.1 to 3.15
4. Evaluation / 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 e-auction system on NCDEX / 8.1 to 8.29
9. Order for supply / 9.1 to 9.9
10.Terms and conditions of delivery / 10.1 to 10.5
11.Terms of payment / 11.1.to 11.4
12. Penalty clause / 12.1 to 12.3
13. Force Majeure / 13
14. Arbitration / 14
15.Application form KFCSC Ltd / Annexure-1
16.NCDEX e Markets Ltd (NeML) registration form / Annexure-2
17. Declaration format/Affidavit / Annexure-3
18. Agreement / Annexure-4
19. Addresses of District Offices / Annexure-5
20. Package film and CFB standards specifications / Annexure-6

Empanelment of suppliers for supply of RBD Palmolein Oil under Public Distribution SystemScheme of Government of Karnataka for the financial year 2016-17under e-procurement mode.

Introduction:- The Karnataka Food and Civil Supplies Corporation (KFCSC Ltd) is a Government Company registered under companies Act-1956 having its registered office at 16/I, Millers Tank Bed Area, Vasanthanagar, Bangalore-560 052.

The Government of Karnataka has appointed KFCSC Ltd., as its agency for procuring RBD Palmolein Oil and Iodizedsalt for its Public Distribution SystemScheme.

The KFCSC Ltd shall follow e-procurement mode and has entrusted the same to NCDEX e Markets Ltd for conducting electronic auction system for procurement of RBD palmolein Oil from registered suppliers.

The KFCSC Ltd invites applications from the eligible Vegetable oil refineries or vegetable oil packers or Traders (including importers of Palmolein Oil) for enrolment as registered suppliers for supply of RBD Palmolein Oil. The procedure for enrolment, registration and terms and conditions of supply under the above e-procurement for supply of RBD Palmolein Oil is detailed below:-

1.SCOPE OF WORK:-

1.1.The KFCSC Ltd being the agency for procurement of RBD Palmolein Oil under Public Distribution SystemScheme proposes to procure the RBD Palmolein Oil for 2016-17financialyear from the Vegetable oil refineries or vegetable oil packers or Traders (including importers of Palmolein Oil) through e-procurement process.

1.2.The monthlyrequirement of RBD Palmolein Oil under this scheme for 2016-17financialyear is approximately11,000 Kilo Litres, which has to be supplied to the wholesale points of KFCSC Ltd situated in all the talukas of the state of Karnataka. The quantities in respect of each district may vary depending upon the requirement and demand as indented by respective District managers of KFCSC Ltd from time to time.

1.3.Under the above scheme RBD Palmolein Oil will be procured from the registered Vegetable oil refineries or vegetable oil packers or Traders (including importers of Palmolein Oil)as per the eligibility criteria mentioned in Clause-2.

1.4.In order to facilitate Vegetable oil refineries or vegetable oil packers or Traders (including importers of Palmolein Oil)to participate in e-procurement process, registration with NCDEX e Markets Ltd is mandatory. The procedure for registration with NCDEX e Markets Ltd is detailed in Clause-3

1.5.The inspection and evaluation of samples will be carried out in accordance with specified quality parameters as per the procedure stipulated in Clause-7.

1.6.After satisfactory supply of the tendered items by the Successful Bidder within the stipulated time, Payment will be released by KFCSC Ltd to the suppliers within 25 working days from date of submission of bills as per the procedure stipulated in Clause-11 through NCDEX e Markets Ltd platform to the respective account of the suppliers by electronic fund transfer.

1.7. The procedure for enrolment and registration of suppliers, terms and conditions of purchase of RBD Palmolein Oil is detailed below. Some of the clauses to these terms & conditions may be amended if necessary, prior to the conduct of e-Auction. Details of such amendments will be uploaded in the website for the information of participants.

2. ELIGIBILITY / PREQUALIFICATION CONDITIONS.

2.1.Persons having own / leased Vegetable oil refineries or vegetable oil packers or Traders (including importers of Palmolein Oil) dealing with vegetable oil in association with vegetable oil packers with following facilities are eligible to apply for registration as registered supplier with KFCSC Ltd.

2.2.The Vegetable oil refineries or vegetable oil packers or Traders (including importers of Palmolein Oil) should be owned or leased by the registered supplier. In respect of Vegetable oil refineries or vegetable oil packers or Traders (including importers of Palmolein Oil) which are leased, the lease agreement should be legally registered with the competent authority. In respect of Traders they should have back to back supply arrangement with RBD Palmolein Oil refineries or packers.

2.3.The Vegetable oil refineries or vegetable oil packers (including importers of Palmolein Oil) should have a minimum capacity of production of 25000litres per day.

2.4 The traders should have a minimum trade turnover of over of Rs 4 croresin the previous year i.e. 2014-15/2015-16.

2.5.The Vegetable oil refineries or vegetable oil packers or Traders (including importers of Palmolein Oil) should have adequate secured storage facility to store minimum 50000litres of RBD Palmolein Oil.

2.6.The Vegetable oil packers or Traders (including importers of Palmolein Oil)who have back to back supply arrangement with RBD Palmolein Oil refineries/ packers should have proper valid license by the concerned authority for processing and storing of vegetable oil.

2.7.The Vegetable oil refineries or vegetable oil packers or Traders (including importers of Palmolein Oil) should have been in operation for at least past one year.

2.8.The applicant should possess valid VAT and State / Central Sales Tax registration issued by concerned authorities.

2.9The firm 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.

2.10. The Vegetable oil refineries or vegetable oil packers or traders shall possess a valid FSSAI license.

3.DOCUMENTS TO BE FURNISHED ALONG WITH APPLICATION FOR REGISTRATION WITH NCDEX e Markets Ltd.

3.1The Vegetable oil refineries or vegetable oil packers or Traders (including importers of Palmolein Oil) who have back to back supply arrangement with vegetable oil refineries/packers should have proper valid license by the concerned authority for processing and storing of vegetable oil- Attested Copy of which will have to be furnished.

3.2Self attested copy of Audited balance Sheet and profit / loss account for two years, if it is an own packing or refining unit. In case of a leased unit, the above documents of both the entities i.e. lessor and lessee will have to be furnished.In respect of Traders attested copy of supply agreement to be furnished.

3.3Self attestedCopy of the Income Tax returns of last two year with a copy of a PAN card.

3.4SelfAttestedCopy ofCertificate of registration under VAT, State / Central Sales Tax Act, Service Tax Act as applicable.

3.5A declarationas per the format in Annexure-3with seal and signature of the authorized person on Rs 100 non judicial stamp paper authenticated by the notary public has to be furnished.

3.6In case of partnership firm or Co-operative or Corporate, the Vegetable oil refineries or vegetable oil packers or Traders (including importers of Palmolein Oil) should furnish a copy of the partnership deed or byelaw or Memorandum of Association as the case may be. In case of partnership firms the share holding and profit sharing pattern should be duly certified by the Chartered Accountant along with details of name, age, education and experience of the partners. In case of Cooperative / corporate firm copy of the Board resolution duly authorizing the Chief Executive or the authorized person to register and participate in the e-procurement process should be furnished.

3.7In case of supplier who has entered in to lease agreement with the Vegetable oil refineries or vegetable oil packers or Traders (including importers of Palmolein Oil) the copy of the legally registered lease agreement duly certified by the Charted Accountant shall be enclosed. Both lessor and the lessee shall also submit an affidavit as per Annexure-3

3.8The address proof of the authorized signatory viz Telephone bill/copy of pass port / electricity bill/ voter ID proof 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.

3.9Bank Account details of the firm with address of the bank, IFSC Code should be printed on letter head of the firm.

3.10One set of above self attested documents to be enclosed to application(Annexure 1) for registration to be submitted to KFCSC Ltd along with copy of RFP duly signed with seal and signatures from page 1- 26/27.

3.10.1 For registration with NCDEX e Markets Ltd (NeML) the firm has to enclose Annexure 2 along with VAT certificate, PAN Card and Bank details.

3.10.2The TCM, CP of NCDEX e Markets Ltd who have renewed the membership for the year 2016-17 need not pay registration fee and application to NCDEX e Markets Ltd.

3.11A D.D drawn in favour of KFCSC Ltd, for Rs.1000/ +ST(14.5% total amounts to Rs. 1145/-) as applicable payable at Bangalore towards application fee (non-refundable) shall be enclosed along with the application.For Registration with NCDEX e Markets Ltd, a registration charges of Rs. 5000/- and applicable ST (14.5%, total amounts to Rs. 5725/-)shall be remitted by way of electronic fund transfer in the following NCDEX e Markets Ltd Accounts 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 Bank Account Details

Bank Name / Settlement Account / IFSC Code / Branch Name
HDFC Bank / 00990690013050 / HDFC0000060 / Fort, Mumbai

3.12The application for registration with relevant Annexures can be downloaded from the website In this regard for any clarifications contact the registered Head office of KFCSC Ltd at the following address

PDS Section,

Karnataka Food and Civil Supplies Corporation Ltd.,

No.16/I, Millers Tankbed Area, Vasanthanagar,

Bangalore-560 052.

3.13The interested applicants may also visit website for any relevant information regarding enrolment as participant on NCDEX e Markets Ltd (NeML). Interested participants can also contact the Customer Service Group on phone numbers (022) 66473153/54 or Email:

3.14The Managing Director, KFCSC Ltd has the sole discretion to accept, reject or keep the applications receivedfor registration for supply of RBD Palmolein Oil pending in respect of above tender.

3.15The registered supplier (2015-16) has to submit the following documents for renewal of registration in the year (2016-17):

a)Application for registration with KFCSC Ltd ( Annexure 1)

b)Registration fees as per clause 3.11 (both for NCDEX e markets Ltd and KFCSC Ltd)

c)Request for proposal 2016-17 duly signed with seal from page no. 1 to 26

d)A declaration as per the format in Annexure-3 with seal and signature of the authorized person on Rs 100 non judicial stamp paper(affidavit) authenticated by the notary public has to be furnished.

4. EVALUATION OF APPLICATION FOR REGISTRATION.

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

PDS Section,

Karnataka Food and Civil Supplies Corporation Ltd.,

No.16/I, Millers Tankbed Area, Vasanthanagar,

Bangalore-560 052.

4.2.KFCSC Ltd will scrutinize the applications and relevant documents submitted along with the application. The eligible applicants will be enrolled as registered suppliers of RBD Palmolein Oil under Public Distribution System Scheme for the year 2016-17 and will be issued with registration number / user ID and password by NCDEX e Markets Ltd which will enable them to participate in e-auction as per the terms and conditions.

4.3.Inorder to facilitate empanelment of suppliers and to encourage their participation, the applications received after 5.00 pm of 19thMarch 2016 will also be accepted for empanelment. The applications received after19thMarch 2016 will also be scrutinized on periodic basis and the eligible suppliers will be allowed to participate in subsequent e-auctions conducted if any.

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.

5. SCHEDULING OF E-AUCTIONS.

5.1Based on the requirements, KFCSC Ltd will notify NCDEX e Markets Ltd (NeML) Ltd to schedule auctions on periodic basis. Further such details will be posted on the web site of KFCSC Ltd ( Neither the KFCSC Ltd nor NCDEX e Markets Ltd 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.

6.1The quality parameters for RBD Palmolein Oil are detailed below for the reference of all eligible suppliers. The KFCSC Ltd has the right to alter the parameters at its discretion before notifying the e-auction schedule. Unless and otherwise notified the following parameters shall be the basis for assaying of RBD Palmolein Oil.

6.2.Palmolein means the liquid fraction obtained by fractionation of Palm Oil obtained from the fleshy mescocrap of fruits of oil Palm (ElaeisGuineenisis) tree by the method of expression or solvent extractions. It shall be clear, free from rancidity, suspended or other foreign matter separated water, added colouring standards namely:-

SL
No. / Parameter / Range
01 / Butyro – refractometer Reading at 40 degree Celsius / 43.7 –52.5
or Refractive Index at 40 degree Celsius / 1.45550-1.4610
02 / Iodine value (Wij’s method) / 54-62
03 / Saponification Value / 195-205
04 / Cloud point / Not more than 18 Degree Celsius
05 / Unsaponifiable matter / Not more than 1.2 percent
06 / Acid value / Not more than 0.5
07 / FFA / Not more than 0.25 percent
08 / Moisture / Not more than 0.10 percent
09 / Argemone Oil / Negative

6.3.The supplier is expected to ensure that the RBD Palmolein Oil delivered to the designated warehouses of KFCSC Ltd is strictly within the time as stipulated in the supply order (Indent) and adhere to the quality parameters as stipulated above.

6.4.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 RBD Palmolein Oil shall be in accordance with the parameters as specified in clause 6.2 above.

6.5.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-14 as detailed below. They shall keep the NCDEX e Markets LtdLtd. indemnified at all times in this regard.

6.6.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.

6.7For every batch of supply the assaying report shall be submitted to the Depot Manager of the concerned Whole Sale point along with a copy of the same to the District Manager. The details of assaying agency and cost of assaying will be published on the web site 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

7.1KFCSC Ltd will appoint a third party inspection agency for assaying of RBD Palmolein Oil. The quality of RBD Palmolein Oil will be evaluated based on specified quality parameters as detailed in Clause 6 or as may be notified by KFCSC Ltd 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.

7.2On preparing one batch and in multiples thereafter by the supplier of RBD Palmolein Oil, supplier needs to intimate the assaying agency well in time to send quality person for sampling. After obtaining the sample by the third party agency and after doing analysis the report will be given on that basis along with the copy of report to be submitted to concerned Warehouse Manager, KFCSC Ltd.Only batches which qualify the test needs to be packed and dispatched.Ifthe analyzing report 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.

7.3The 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 two samples to Depot Manager of KFCSC and one sample to the representative of the supplier, if present, for retaining as control samples 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.

7.4The 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 under copy to the concerned district manager at the time of giving delivery. Deliveries without valid documents will be rejected and will not be inwarded by the concerned Depot Manager.

7.5Consignment 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 will verify the documents and the assaying report. On confirming the authenticity of the consignment and after being satisfied with the quality of RBD Palmolein oil 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. Also the District Managers/ Depot Managers shall be continuing the number of carton boxes, the number of 1ltr packet/pouch thus arriving at the net weight, while unloading. Any difference found shall be adequately deducted while making payments. Each packet or pouch shall measure 1 litre in volume and 910 grams by weight, not less or more. Payments shall be processed based on the net weight alone.