Objective:
Coal distribution through e-Auction has been introduced with a view to provide
access to coal for such buyers who are not able to source coal through the
available institutional mechanism. In the long run it is expected that e-Auction
may help in creating spot as well as future market of coal in the country.
The purpose of e-Auction is to provide equal opportunity to purchase coal
through single window service to all intending Buyers.
E - Auction has been introduced to facilitate across the country wide ranging
access to book coal on-line for all sections of coal Buyers enabling them to buy
coal through a simple, transparent and consumer friendly system of marketing and
distribution of
coal.
Terms & Conditions
With reference to para VI (4) of the ‘e-Auction Scheme 2007’ for Spot e-Auction
the detailed terms and conditions are given below :
1. Eligibility:
Any Indian Buyer (viz. individual, partnership firm, companies etc.) can
participate in e-Auction for procurement of coal.
2. Registration:
2.1 Before participation in the e-Auction, a prospective Buyer shall be
required to get itself / himself registered with the Service Provider appointed
by the CIL / Coal Companies for the purpose, by submitting an application in the
prescribed format available on the Website of the respective Service Providers.
The application shall be made along with the required documents such as copy of
Income Tax return (latest), PAN Number, Sales Tax / Vat Registration
Certificate, SSI Registration, Trade License, if applicable, Passport size
photograph, etc. as prescribed by the service provider. Registration can be done
either online, or at any of the front offices of the service provider.
2.2 After the registration, all-prospective Buyers will have an auto
generated “Unique User ID” & a “password” based on which they can log in.
Details of the registration process with the service provider will be available
in their respective websites.
2.3 The service provider shall issue “Photo Identity Card” to their
registered bidders duly authenticating the identity & signature, indicating a
“Unique Registration Number” allotted to them. The “Unique registration number”
of the registered bidders shall be communicated to the Coal Companies by the
service provider.
2.4 Only one registration will be done against one PAN number. However,
based on more than one independent valid sales tax registration, more than one
registration against a PAN Number can be considered. In such cases, the details
of valid sales tax registration will be indicated in each ‘Photo Identity Card’.
2.5 All Buyers having been registered with the service providers shall
also have to furnish non-interest bearing Earnest Money Deposit (EMD) at the
rate of Rs.500/- per tonne for coal of grade ‘E’ & above and at the rate of Rs.
400/- per tonne for coal of grade ‘F’ & below, with the Service Provider. This
EMD shall not be specific for a particular Subsidiary Coal Company and shall be
available with the Service Provider for participation in the e-Auction across
the Subsidiary Coal Companies of CIL, as long as the required amount of EMD is
available in the bidders a/c. with the Service Provider.
3. Notification:
3.1 Coal companies would draw program for conducting at least two
e-Auctions per month and notify the same, minimum 7(seven) days in advance,
through display on the Company’s notice board and putting the same on the Coal
Company’s websites for wide publicity. The program will be intimated to the
Service providers accordingly for hoisting the same on their websites also.
3.2 There will be separate auction for dispatches by rail and road mode.
The minimum quantity for bidding would be 50 (fifty) tonnes for a source for
Road mode, where as in case of Rail the minimum quantity for bidding would be 1
(one) rake. The rake size shall be as per prevalent Railway Rules. The quantity
of coal in a rake shall be as indicated in the notice of E-auction.
3.3 The Buyer should satisfy itself / himself about the Rake fit stations
/ destinations from the Railways before participation in e-Auction by rail,
Non-acceptance of the programme, even after the option exercised under extant
Railway rules, on account of rake-fit stations / destinations being not
accepted by the Railways shall be treated as a failure of the Buyer leading to
forfeiture of relatable EMD.
4. Bidding Process
4.1 The registered Bidders shall be required to record their acceptance
after login, of the Terms & Conditions of the e-Auction before participation in
the actual Bidding Process.
4.2 Before participating in e-Auction, bidders are to satisfy themselves
with the quality of coal being offered from a source.
4.3 Prospective Bidders are entitled to Bid for the quantity to the extent
of amount of EMD for which is available with the service provider in the
bidder’s account at the time of bidding.
4.4 The Buyers while bidding shall quote their “Bid price” per tonne in
Indian Rupee as base coal price on FOR/FOB colliery basis, exclusive of other
charges like statutory levies, surface transportation charges,
sizing/beneficiation charges, taxes, cess, royalty, SED, & any other charges as
will be applicable at the time of delivery. These charges as well as freight
etc. shall be on the Buyers’ account.
4.5 The bidder has to bid for a price equal to or above the reserve price
to secure consideration in the concerned e-Auction.
4.6 The date, time and period of e-Auction as notified in advance
including closing time on portal of service provider shall be adhered to but
for the event of force majeure. However, the closing time of e-Auction will be
automatically extended up to last Bid time, plus 5 minutes, so that opportunity
is given to other Bidders for making an improved Bid on that item.
4.7 The Bidder shall offer his Bid price (per tonne) in the increment of
Rs.10/- (Rupees ten) during the Normal e-Auction period. During the extended
period of first two (2) hours, the Bidder shall offer his Bid price in the
increment of Rs.20/-. Beyond this extended period of two hours the bid price
increment would be Rs. 50/- (Rs.Fifty )
only.
4.8 While maintaining the secrecy of Bidder’s identity, the web site shall
register and display on screen the lowest successful Bid price at that point of
time. The system will not allow a Bidder to Bid in excess of his entitled
quantity as per his EMD. However once a Bidder is out-bided by another (in part
or full) the particular Bidder shall become eligible for making an improved Bid.
4.9 Following criteria would be adopted in deciding the successful
bidders:-
(a) Precedence will be accorded to the highest bid price in the
descending order (H1, H2, H3 and so on) as long as the offered quantity is
available for allocation.
(b) If two or more buyers bid the same highest price, precedence
for allotment will be accorded to the buyer who has placed the bid for the
higher quantity.
(c) In case two or more buyers bid the same price and the same
quantity, precedence will be given to the buyer who has accorded his bid first
with reference to time.
5. Post e-Auction process:
5.1 Each successful bidder will be intimated through e-mail / SMS by the
Service Provider on the same date after the closure of e-Auction. However, it
will be the responsibility of the bidder to personally see and download the
result displayed on website, on the same date after close of e-Auction.
5.2 The successful bidders after the e-Auction, will be required to
deposit coal value with the concerned coal company, within a period of seven
working days, after the date of closing of e-Auction. Seven working days would
be reckoned as applicable to the respective Subsidiary Coal companies’ office
where the payment/ deposit is required to be made.
5.3 Equivalent amount of EMD of successful bidder corresponding to
successful bid quantity, shall be blocked and will be transferred to Coal
Company by the service provider along-with the bid sheet in respect of
successful bidders.
6. Terms of payment:
6.1 The coal value to be deposited in advance by the successful bidders
shall be computed and deposited after making provision for the EMD amount for
the successful bid quantity already transferred by the service provider to the
subsidiary company. In other words, the coal value to be deposited and EMD
amount together, shall be equivalent to the 100 % coal value.
6.3 EMD amount shall not be treated as an adjustment towards the coal
value but would stand converted into a ‘Security Deposit’ for performance of the
bidders towards completion of the said transaction.
6.4 The above security deposit (as converted from the EMD amount) would be
adjusted as coal value, only after completion of lifting of coal covered under
coal value paid, excluding security deposit. However, in the event of default in
performance by the bidder, the provision of forfeiture of the ‘Security Deposit’
(as converted from the EMD) as stipulated, would be applicable.
6.5 In case of road supplies, once the coal value is deposited by way of
demand draft /pay order, drawn in favour of the concerned coal company,
along-with the debit advice issued by the bank, certifying that the DD/pay
order/RTGS Mode has been issued, by debiting the account of the concerned Buyer,
Sale/Delivery orders shall be issued within seven days by the coal company after
encashment of buyer’s financial instrument.
In case of successful bidders, if the coal value is deposited for less than the
allotted Quantity but not below 50% of the allotted quantity or, 50 tonne
whichever is higher, the coal company shall accept the payment for the said
amount and forfeit the EMD for the failed quantity. However if the buyer fails
to deposit the coal value for at least 50% of the allotted quantity or 50
tonnes whichever is higher then the entire EMD of the allotted quantity shall be
forfeited.
6.5 However, a successful bidder whose allotted quantity is only 50 tonnes
will be allowed to deposit coal value for minimum 90% i.e 45 tonnes within the
stipulated period of 7 days without which the amount shall not be accepted. In
such event they shall be permitted to deposit the balance fractional amount,
limited to 10 % of the total coal value of 50 tonne, within the subsequent
period of 3 (three) working days. In spite of this, if they fail to deposit full
coal value of 50 tonne (minimum bid quantity), EMD for entire 50 tonne shall be
forfeited.
6.6 In case of rail borne supplies, there shall be two options available.
While submitting program, the bidder at his option can deposit 100 % BG on the
prescribed format from the buyers own account or else may deposit 100% amount
through demand draft /pay order, drawn in favour of the concerned coal company,
along with the debit advice, issued by the bank certifying that the DD/pay order
has been issued by debiting the account of the concerned Buyer.
6.7 In case of Buyers who have booked their rail programme through BG, a
notice for deposition of coal value by way of DD/Pay order/RTGS Mode, will be
displayed on the notice board of the coal company, at least three working days
in advance before the expected date of offer to the Railways for allotment. The
Buyer will be accordingly required to deposit DD/Pay Order/RTGS Mode along with
the debit advice to the tune of BG involved in the programme, within 48 hours of
such notice. But in any case it is to be noted that buyers who wish to avail
Bank Guarantee facility are required to deposit coal value under e-auction prior
to 7 working days of the validity of the sanction. In case of failure to
deposit, the EMD so deposited will be forfeited. All the buyers must satisfy
themselves with quality, size and other aspects by inspecting the material
available for proposed e-auction before bidding.
In the event of non-deposition of 100% coal value by the Bidder in terms of
Clause-6.7 above, the consent given against rake programme will be withdrawn by
the coal company and EMD as per e-Auction scheme will be forfeited.
6.8 The Buyers shall also have the option of e-Payment once the system in
the Coal companies is suitably developed & the same is notified on the websites
accordingly.
6.9 Successful Buyers are requested to deposit the coal value to the
extent of 3 Demand Drafts only. More than 3 Demand Drafts will not be accepted
and failure on the part of the Buyer to deposit the coal value within the
validity period will be liable to forfeiture of EMD.
6.10 Consumers/Buyers are requested to deposit Original Road Delivery Orders
to the colliery for lifting of coal. Those who are willing to lift the coal are
also requested to deposit the Consumers’ Copy. Those who fails to deposit
original Consumers copy of RDO to the colliery end, the refund of amount will
not be processes until and unless is same is deposited at the area/colliery. All
consumers are also requested to receive the coal bills after completion of RDO
or after the expiry of the validity period from the colliery by 25th of
succeeding month.
7. Procedure of Coal Delivery
By Road:
7.1 Coal company shall issue Sale / Delivery Orders to the successful
bidders in terms of Clause 6.4 after realisation of payment. The Buyer has to
submit the option before the issue of the Sale / Delivery Order for movement of
the coal “within state” or “outside state” and the Sale / Delivery Order would
indicate the same accordingly. However, the challan issued by the Coal Company
shall indicate the destination.
7.2 The validity period to complete lifting of coal by road shall be 45
days from the date of issue of Sale/Delivery Order. No extension of validity
will be allowed in any case.
By Rail:
7.3 The seniority of buyers in case of rail borne supplies shall be guided
by the seniority list as provided by the service provider based on buyer’s bids.
7.4 The quantity allotted against each rake is indicative quantity only
and delivery shall be made on the basis of actual weighment by the Seller at the
loading end.
7.5 The validity period for seeking allotment of rake in case of rail
supplies shall be 45 days from the date of issue of consent by the coal company.
Once the rake is allotted it shall remain valid for supply of coal as per
prevailing Railway Rules.
7.6 Although loading will be the responsibility of the coal company, but
to avoid any complaint regarding over-loading, under loading and quality, the
Buyer himself or his authorized representative may supervise loading at the
loading point. The authorized representative must carry valid authority letter
along with photocopy of Identity Card issued by Service Provider.
7.7 Over-loading / Under-loading
(a) Any penal freight for over-loading charged by the Railways for any
consignment shall be payable by the Purchaser. However, if over-loading is
detected from any particular colliery, consistently during three (3) continuous
months, on due intimation from the Purchaser to this effect, the Seller
undertakes to take remedial measures.
(b) Any idle freight for under-loading below the stencilled carrying
capacity, as shown on the wagon, for Grade A, Grade B, Steel Grade I, Steel
Grade II, Washery Grade I, Washery Grade II, Semi-coking Grade I, Semi-coking
Grade II and washed coal ; and below the stencilled carrying capacity as shown
on the wagon, plus two (2) tones for all other grades of coal shall be payable
by the Seller.
(c) Idle freight resulting from under-loading of wagons, as per Clause
(b) shall be adjusted in the bills. Idle freight shall be reckoned as :
(i) the difference between the freight charges applicable for the
stencilled carrying capacity, as shown on the wagon, less the freight payable as
per actual recorded weight of coal loaded in the wagon for Grade A, Grade B,
Steel Grade I, Steel Grade II, washery Grade I, Washery Grade II, Semi-coking
grade I, Semi-coking Grade II and washed coal ; or
(ii) the difference between the freight charges applicable for the
stenciled carrying capacity, as shown on the wagon, plus two (2) tones less the
freight payable as per actual recorded weight of coal loaded in the wagon for
all other grades of coal.
7.8 The weighment at the loading end shall be final and binding for all
commercial purposes.
8. Refund of EMD for Unsuccessful bidders:-
In case of unsuccessful bidders, EMD shall be refunded by the Service Provider
after the auction is over, on the bidder’s request. However, if no such request
is received the Service Provider will retain the EMD for participation in
e-Auction in future.
9. Forfeiture of EMD:-
The EMD submitted by the successful Bidders will be liable for forfeiture in
the following cases: -
9.1 If after completion of e-Auction, a successful bidder fails to make
payment for the coal value including all other charges within the stipulated
time, the proportionate EMD equivalent to the failed quantity shall be
forfeited subject to the provisions at Clause 6.4 and/or Clause 6.5 of this
document, and/or,
9.2 If the successful bidder does not lift the booked quantity within the
stipulated validity period, the proportionate Security Deposit at the rate of
Rs.500/- per tonne for coal of grade ‘E’ & above and at the rate of Rs. 400/-
per tonne for coal of grade ‘F’ & below (as converted from the EMD amount) for
the unlifted quantity would be forfeited.
Such forfeiture shall be made only if the balance Unlifted Quantity is equal or
more than a Truck Load i.e.9 or 10 tonnes as applicable.
Such forfeiture, however, would not take place if the coal company has failed to
offer full or part of the successful bid quantity within the validity period.
In such cases again, no forfeiture would take place if the balance quantity is
less than a truck load/rake load.
9.3 If the Buyer cancels the order/Rake after booking, the EMD at the rate
of Rs.500/- per tonne for coal of grade ‘E’ & above and at the rate of Rs. 400/-
per tonne for coal of grade ‘F’ & below shall be forfeited for the rake
cancelled.
10. Refund of Coal value:
The balance coal value of the unlifted quantity after the expiry of the validity
period for supply of coal and completion of required commercial formalities
shall be refunded subject to forfeiture of EMD if required, in terms of the
forfeiture clause as above.
New Consumers/Buyers are requested to submit the Mandate Form along with the
application at the time of deposit of coal value so that the refund, if any,
will be made through e-payment mode. The Mandate Form may be downloaded from
MCL’s website (www.mahanadicoal.nic.in & www.mahanadicoal.gov.in). Old Consumers
who have not deposited Mandate Form are also requested to submit Mandate Form,
otherwise no refund will be processed after 15.12.2008.
11. General Terms & Conditions:
11.1 The coal procured under e-Auction is for use within the country and Not
for Export.
11.2 All terms and conditions of Scheme are subject to force majeure
conditions as applicable.
11.3 Bidders must always ensure to keep their email address valid. In any
case Buyers can not be absolved from fulfilling the responsibility of compliance
of any of the terms and conditions herein including payment terms due to
non-receipt of emails from the Service Provider.
11.4 Bidders must be extremely careful to avoid any error in bidding
(whether typographical or otherwise) and they are fully responsible to check and
rectify their bid before submitting their Bid into the live e-Auction floor by
clicking the “Bid” button. During the auction if the incremental bid price is
more than 50% of the immediate preceding bid price, then the system will seek a
re-confirmation from the Bidder before the bid is registered.
11.5 There is no provision for bidding in decimals. The Bidder shall be
solely responsible for all consequences arising out of the bid submitted by him
(including any wrongful bidding by him) and no complaint /representation will be
entertained by the Service Provider/Coal Company in this regard.
11.6 The decision of the Director-In-Charge of Marketing of CIL / Coal
Company in matters related to this e-Auction shall be final and binding on the
bidders / Buyers.
11.7 Quantity mentioned in notice are only indicative and may undergo a
change depending on factors like actual production of coal, bottlenecks in coal
transportation etc.
11.8 There will not be any joint/ third party sampling facility extended to
any buyer. Refusal on account of non-suitability and /or sub-standard quality
for the allotted quantity of coal shall not be acceptable.
11.9 Coal Company / Service Provider reserve the right to cancel the sale of
coal under this e-Auction from any source / location in part or whole at any
stage at its sole discretion without assigning any reason thereof and no party
shall have any right whatsoever to raise any claim in that regard on that count.
11.10 CIL/Coal Company reserves their rights to amend/modify and revise the
terms and conditions contained herein in full or in part at any point of time
and no party shall have any right whatsoever to raise any claim in that regard
on that count.
11.11 Sale under each e-Auction shall be an individual, independent, unique and
complete transaction.
11.12 In the event of any dispute, Bidder / Buyer is necessarily required to
represent in writing to the General Manager (Sales) of the concerned coal
company, who would deal with the same in a period of one month from such
representation. Thereafter, if required the matter be determined by the
Director-In-Charge of Marketing of the concerned coal company. Any
interpretation of any clause of this will be subject to clarification by CIL,
which will be deemed as firm and final. All disputes arising out of this scheme,
or in relation thereto in any form whatsoever shall be dealt exclusively by way
of arbitration in terms of the Arbitration and Conciliation Act, 1996. The
arbitration shall be conducted at Calcutta at a place to be notified by CIL. The
arbitrator shall be appointed by the Chairman and Managing Director, CIL upon
written request in this behalf. The award rendered by the Arbitrator shall be
final and binding on the parties. (The place of arbitration & nomination of
arbitrator be varied appropriately in view of the Coal Company involved)”.