KARNATAKA FOOD AND CIVIL SUPPLIES CORPORATION LIMITED

No.16/I, ‘Ahara Bhavan’ Millers Tank Bed Area, Vasanthanagar, Bangalore-52.

REQUEST FOR PROPOSAL

for enrolment of suppliers for supply of Tur Dal under Aksharadasoha Scheme through NDCEX Spot Exchange Ltd.

KARNATAKA FOOD AND CIVIL SUPPLIES CORPORATION LTD

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

INDEX

Introduction

1. Scope of work1.1 to 1.6

2. Eligibility/Prequalification conditions2.1 to 2.7

3. List of the documents to be furnished 3.1 to 3.13

4. Evaluation4.1 to 4.4

5. Scheduling of e-auctions5.1 to 5.2

6. Quality parameters6.1 to 6.5

7. Assaying7.1 to 7.11

8. Process e-auction system on NEDEX8.1 to 9.0

9. Order for supply9.1 to 9.9

10.Terms and conditions of delivery10.1 to 10.3

11.Terms of payment11.1.to 11.3

12. Penalty clause12.1 to 12.3

13. Arbitration13.0

14. List of the wholesale point estimate

Quantity of Tur DalAnnexure-1

15. Application for enrolmentAnnexure-2

16. NCDEX Spot registration formAnnexure-3

17. Authorisation letterAnnexure-4

18. Addresses of District OfficesAnnexure-5

19. Check listAnnexure-6

Procedure for registration of suppliers for supply of Tur dal under Aksharadasoha Scheme of Government of Karnataka for the academic year 2011-12 under 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 in 16/I, Millers Tank Bed Area, Vasanthanagar, Bangalore-560 052.

The Government of Karnataka has appointed KFCSC Ltd., as its agency for procuring Tur dal, Pomolin Oil and Double fortified salt for its Aksharadasoha Scheme.

The KFCSC Ltd now intends to switch over to e-procurement and is willing to entrust the same to NCDEX Spot Exchange Ltd., for conducting electronic auction system for procurement of Tur dal from registered suppliers.

The KFCSC Ltd has invited applications from the eligible Dal Millers for enrolment as registered suppliers for supply of Tur dal. The procedure for enrolment and registration under the above e-procurement for supply of Tur dal is detailed below:-

1.SCOPE OF WORK:-

1.1. The KFCSC Ltd being the appointed agency for procurement of Tur dal under Aksharadasoha Scheme proposes to procure the Tur dal for 2011-12 academic year from the Dal Millers through e-procurement process.

1.2. The requirement of Tur dal under this scheme for 2011-12 academic year is approximately 15000 Metric Tonnes, which has to be supplied to the wholesale points of KFCSC Ltd situated in all the talukas of the state of Karnataka. The list of wholesale points and the estimated quantity of the Tur Dal required for each month may be seen in Annexure-1. The quantities indicated in respect of each district may vary depending upon the requirement and demand.

1.3. Under the above scheme Tur dal will be procured from the registered Dal Millers as per the eligibility criteria mentioned in Section-2.

1.4. In order to facilitate Dal Millers to participate in e-procurement process, registration with NCDEX Spot Exchange Ltd is mandatory. The procedure for registration with NCDEX Spot Exchange Ltd is detailed in section-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 section-7 Such evaluation will be conducted by the third party assaying agency appointed by KFCSC Ltd.

1.6. Payment will be released to the suppliers within 15 working days to the respective account of the suppliers by electronic fund transfer.

2. ELIGIBILITY / PREQUALIFICATION CONDITIONS.

2.1. Persons having own / leased Dal Mill with following facilities are eligible to apply for registration as registered supplier with KFCSC Ltd.,

2.2. The Dal Mill should be owned or leased by the registered supplier.

2.3. The Dal Mill should have a minimum capacity of processing 20 MTs of Tur per day.

2.4. The Dal Mill should have adequate secured storage facility to store minimum 400 quintals of Tur dal.

2.5. The Dal Mill should have proper valid license by the concerned authority for processing and storing of pulses.

2.6. The Dal Mill should have been in operation for at least past three years. They should posses valid VAT and State / Central Sales Tax registration issued by concerned authorities. This condition is relaxed in respect of those Dal Mills which are newly established.

2.7 The firm should not have been convicted for any offences or violation of any State or Central act such as essential commodities act etc or any criminal offence under IPC.

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

3.1. Attested copy of the license issued under Sec-72 and Rule-76 of Karnataka Agricultural Produce Marketing & Regulation Act-1966 and Rule-1968 for those Dal Millers which are located within the state of Karnataka for processing and stocking of pulses under APMC Act. In respect of other states the relevant Act / Rules shall apply.

3.2. Audited balance Sheet and profit / loss account of past three years duly certified by Chartered Accountant.

3.3. Copy of the Income Tax returns of last three years with a copy of a PAN card attested by Chartered Accountant.

3.4. Certificate of registration under VAT, State / Central Sales Tax Act, Service Tax Act as applicable along with duly certified tax returns of past three years.

3.5. An affidavit regarding

3.5.1. Not having been prosecuted for violation rules / law under Essential Commodities Act or any such others law or orders there under in any court of law.

3.5.2. Not having been black listed by any organization or Government for non-performance of contractual obligation.

3.6. In case of partnership firm or Co-operative or Corporate the Dal Miller should furnish a copy of the partnership deed or byelaw or memorandum as the case may be. In case of partnership firms the share holding pattern should be duly certified by the Chartered Accountant along with details of name, age, education and experience of the partners. In case of Co operative / corporate bodies 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.

3.7 In case of supplier who has entered in to lease agreement with the Dal Miller the copy of the lease agreement duly certified by the Charted Accountant shall be enclosed.

3.8. The Dal Miller 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. Attestation of signature of such authorized signatory from the bank where the firm is having its account is essential.

3.9. The 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.

3.10. Bank account details of firm along with a copy of the Bank Statement of period from 01.04.2010 till date.

3.11. One set of documents to be enclosed to application for registration and other set of documents to be enclosed to application for enrolling as participant on NCDEX Spot Exchange Ltd. The format of application is furnished vide Annexure-2 and 3 respectively.

3.11. A D.D drawn in favour of KFCSC for Rs.1000/- payable at Bangalore towards application fee (non-refundable) shall be enclosed along with the application. A D.D/Electronic fund transfer in favour NCDEX Spot Exchange Ltd, payable at Mumbai for Rs.5000 towards registration charges in any of the following NCDEX Spot Exchange Accounts:

NCDEX Spot Exchange Ltd
Bank Name / Account No. / IFSC Code / Branch
HDFC Bank Ltd / 00990690013043 / HDFC0000060 / Fort,Mumbai
Indusind Bank / 0033-569227-066 / INDB0000033 / Fort,Mumbai
Axis Bank Ltd / 4010202176811 / UTIB0000004 / Fort,Mumbai
Bank of India / 008620110000781 / BKID0000086 / Fort,Mumbai
State Bank of India / 30760960198 / SBIN0011777 / Fort,Mumbai

towards registration fee to enroll on NCDEX Spot Exchange Ltd for participation in e-auction shall be enclosed along with the application separately.

3.12. The application for registration with relevant Annexures can be downloaded from the website Alternatively the application can also be personally collected from the registered office of KFCSC Ltd at the following address without any charge.

Karnataka Food and Civil Supplies Corporation Ltd.,

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

Bangalore-560 052.

Requests for forwarding applications through post / couriers will not be entertained.

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

4. EVALUATION OF APPLICATION FOR REGISTRATION.

4.1. The completed applications along with relevant documents and fee / registration charges shall be submitted on or before 9th April, 2011 at the following address.

The Applications received after 9th April,2011 will also be scrutinized for enrollment and upon acceptance of their application for enrolment would be eligible to participate in subsequent e auctions.

Karnataka Food and Civil Supplies Corporation Ltd.,

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

Bangalore-560 052.

4.2. The KFCSC Ltd will scrutinize the applications and relevant documents submitted along with the application. The applicants will be informed within three weeks from the last date of submission of application regarding acceptance / rejection of their application. The selected applicants will be enrolled as registered suppliers of Tur dal under Aksharadasoha Scheme for the academic year 2011-12 and will be issued with registration number / used ID and password.

4.3. The registered suppliers can also register with the NCDEX Spot Exchange Ltd maximum of one mobile number for participating on e-auction for forwarding bids through short message services (SMS).The format of application is furnished in annexure-4

4.4. Such registered suppliers are eligible to participate on electronic bidding system (e-auction) conducted by NCDEX Spot Exchange Ltd 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 / wholesale points of KFCSC Ltd

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5. SCHEDULING OF E-AUCTIONS.

5.1 Based on the requirements of each region, KFCSCL will notify NCDEX Spot Exchange Ltd to schedule auctions on periodic basis. Complete details of e-auction schedule will be available with all the district offices of the corporation. Further such details may also be posted on the web site of KFCSC Ltd and NCDEX Spot Exchange Ltd. Neither the KFCSC Ltd nor NCDEX Spot Exchange 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 fulfilling the criteria as may be specified from time to time by NCDEX Spot Exchange Ltd.

6.QUALITY PARAMETERS.

6.1 The quality parameters for Tur Dal will be specified by the KFCSC Ltd for each destination. Broadly the corporation may notify two set of quality parameters. One for Fatka and other for Sawa Number. The specifications are detailed below for reference only. The KFCSC Ltd has the right to alter the parameters at its own discretion before notifying the e-auction schedule for each location.

Commodity / Tur Dal / Tur Dal
Variant / Regular
(Fatka) / Popular
(Sawa No.)
1 / Moisture % (w/w) / 12 / 13
2 / Split / Broken Grains (W/W) / 2 / 3
3 / Damaged Discoloured Grains w/w / 0.25 / 0.5
4 / Powder Residues w/w / 0.25 / 0.5
5 / Grains With Husk w/w / 0.5 / 1
6 / Foreign Matter / 0.5 / 0.75
7 / Immature/Green Grains / 0.5 / 1
8 / Weevilled Grains (By Count) / 0.5 / 1

* Note : For Accidental errors a tolerance of 0.5 % over and above the tolerance specified is permissible.

6.2. The supplier is expected to ensure that the Tur Dal delivered to the designated warehouses of KFCSC Ltd adhere to the quality parameters as stipulated by the KFCSC Ltd from time to time.

6.3. Stocks should confirm to the specification indicated in the P.F.A. Act 1954 along with the P.F.A Rules, 1955 and free from common deleterious matter. The Successful qualified suppliers will be solely responsible for consequences for any violation of the P.F.A.Act, 1954 along with the P.F.A Rules 1955.

6.4. Suppliers shall be liable for any action consequences that may arise due to non adherence to quality parameters. Any dispute/claim arising from the delivery of the Tur Dal to the KFCSC Ltd shall be settled by the supplier and KFCSC ltd.

They shall keep the NCDEX Spot Exchange Ltd. 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 arises under the scheme.

7.ASSAYING

7.1 The KFCSC Ltd will appoint a third party inspection agency for assaying of Tur Dal. The quality of Tur Dal will be evaluated based on specified quality parameters as detailed in section 6 or as may be notified by KFCSC Ltd before scheduling e-auction on NCDEX Spot Exchange Ltd Platform.

7.2 The assaying agency is authorized to test and certify samples of Tur Dal at each stage of delivery. The first stage of testing and certification and will be carried out when the supplier offers the stock of Tur dal ready for delivery stored at his premises. The supplier has the option to not to offer the lot for testing and certification at the first stage. In case the supplier opts to offer the lot /batch for testing and certification the entity has to inform KFCSC Ltd about carrying out joint sampling three working days in advance. Four samples of 250gms each shall be jointly drawn from each batch/lot marked for inspection. If more than one batch/lot is used for delivery, then samples from each such batch/lot shall be drawn.

7.3. These samples shall be sealed, the identification label provided by the assayer, signed by the representative of the supplier and the assayer. The supplier will retain with him one sample, handover three samples to assayer.

7.4. The results of the sample will be communicated to the KFCSC Ltd by the Assayer. KFCSC Ltd will then intimate the assaying results to supplier and clear those batches/lots which qualify for delivery.

7.5. The supplier then allocates cleared lots for delivery to various destinations and intimates schedule of delivery to KFCSC Ltd, three working days in advance. Upon receipt of such delivery intimation by the supplier,the KFCSC Ltd will depute representative of the assaying agency to supervise the loading of the consignment of Tur Dal.

7.6. The second stage of testing and certification will be carried out by assaying agency when the consignment is being loaded to the trucks. Four representative samples of 250Gms each will be drawn by the assaying agency and sealed with necessary identification marks. The supplier will retain with him one sample, handover three samples to assayer for testing .

7.7. 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 shall be handed over to Depot Manager of KFCSC Ltd at the time of giving delivery. Deliveries without valid documents will be rejected and will not be inwarded by the concerned Depot Manager.

7.8. Consignment will be unloaded at the designated warehouse during working hours only i.e. between 10am and 5pm.On arrival of the consignment the Depot Manager of KFCSC Ltd will verify the documents and after confirming authenticity of the consignment directs the representative of the supplier to arrange for recording the gross weight of the consignment on an electronic weighbridge before unloading.

7.9. The third stage of testing and certification will be carried out while unloading the consignment at the accredited warehouse of the KFCSC Ltd. Four representative samples of 250Gms each will be drawn and sealed with necessary identification marks. The samples will then be evaluated by the assaying agency as per the specified quality parameters.

7.10 After unloading the tare weight of the truck is recorded on the same electronic weighbridge. The copies of the weigh bridge receipts along with other documents i.e. invoice / delivery challan and weighbridge receipts at the loading point shall be handed over to the Depot Manager of KFCSC Ltd.

7.11. 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.

8. PROCESS OF ELECTRONIC AUCTION SYSTEM ON NCDEX Spot Exchange Ltd. Platform.

8.1. The NCDEX Spot Exchange Ltd after scrutiny of application for registration will enroll 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 KFCSC Ltd will schedule the auctions for each location, district and such details viz. e-auction calendar will be published on the website of the KFCSC Ltd as well as NEDEC Spot Exchange website.