How to Apply for Biomass Pellet Tender at Nabha Power Plant: Key Guidelines for Agro-Residue Suppliers
Nabha Power Limited (NPL), a subsidiary of L&T Power, has invited bids for the supply of agro residue-based non-torrefied biomass pellets to its thermal power station located in Rajpura, Punjab. This initiative is in line with the government’s policy to promote biomass co-firing and reduce stubble burning in northern India. The tender provides an opportunity for biomass pellet manufacturers, agro-based businesses, and entrepreneurs to participate in a long-term fuel supply arrangement with a reputed power utility.
To successfully participate in this tender, bidders must carefully review and comply with the critical requirements specified in the Bid Document. These include eligibility criteria, technical specifications of the biomass pellets, submission protocols, financial qualifications, pricing structures, and contract terms.
Here are the key parameters for tender filling:
1. Tender Purpose and Scope of Work
- Material Supplied: The tender is for the supply of agro residue-based non-torrefied pellets for blending with coal at NPL’s 2×700 MW super critical thermal power plant in Rajpura, Punjab.
- Scope of Contractor: The contractor’s scope of work includes supply, loading, unloading, transport, and delivery of the material at the NPL plant.
- Quantity: NPL’s total requirement is 365,000 MT for one year, approximately 1000 MTPD (Metric Tonne Per Day). Bidders must quote quantities in multiples of 10 MTPD.
- Minimum Bid Quantity: The minimum quantity to be offered is 70 TPD (Tonnes per day) for both traders and manufacturers. Bids offering less than this minimum quantity will be rejected.
- Base Material Requirements: The pellets must be manufactured using agro/crop residue. A minimum of 50% crop residue of rice paddy must be used as the base material, and 100% of the rice paddy used must be procured from within Punjab. Wood-based byproducts (e.g., wood, chips, sawdust, furniture waste) are not acceptable. Natural additives/binders like lignin, starch, or animal dung can be used but must be explicitly mentioned.
2. Bidder Qualification Criteria
- Financial Qualification: Bidders must have a Net Worth of at least Rs Fifty (50) Lakh as of March 31, 2024, or March 31, 2023. This must be certified by a Statutory Auditor/Chartered Accountant using Annexure III and supported by an audited Balance Sheet. Only audited balance sheets are considered.
- Eligibility: Both manufacturers and traders are allowed to participate. Subsidiaries can bid based on their parent company’s credentials.
- Related Parties & Conflict of Interest: Bidders must submit a Declaration of Related Parties (Annexure XI). Only one bid per bidder/parent company/associate/affiliate/related party is allowed, and no conflict of interest should exist. Canvassing or attempts to influence the bidding process can lead to disqualification and blacklisting.
3. Bid Preparation and Submission
- Mode of Submission: Price Bids and all requisite documents must be submitted online only through NPL’s e-portal (https://npl.abcprocure.com/EPROC/). Physical bids will be rejected.
- Digital Signature Certificate (DSC): A Class 3 DSC in the name of the Authorized Signatory is required for online submission and reverse bidding.
- Language & Currency: Bids and supporting documents must be in English. Prices must be quoted in Indian Rupees (INR).
- Unconditional Bid: The bid must be unconditional and non-suggestive; any conditions or amendments to the terms may lead to rejection.
- Required Documents (Online Submission):
- Price Bid
- Covering Letter .
- Power of Attorney for Authorized Signatory (notarized copy online, physical copy within 10 days of intimation).
- Latest Bid Document (all pages duly stamped and signed).
- Certificate from Statutory Auditor for financial qualification .
- Audited Balance Sheet
- Vendor Identification Form
- Undertaking of Paddy Procurement and Composition
- Declaration of Related Parties .
- Declaration of Manufacturing Facility (for manufacturers).
- Memorandum of Association (MoA), Article of Association (AoA), Certificate of Incorporation, Board Resolution.
- GST registration certificate and PAN card copy.
Tender Timelines
Last Date For Submission: 20 July , 2024, 13:00 Hrs.
4. Pricing and Payment
- Price Basis: Quoted prices must be on a “Free on Road (FOR) at NPL Plant” basis, including freight charges.
- Components: Price Bid format requires quoting basic ex-works price, transportation charges, GCV (Gross Calorific Value), rate per MT/GCV, GST (currently 5%), and the rate inclusive of GST.
- Price Cap: The basic ex-works rate for Non-Torrefied Biomass Pellets shall not exceed Rs 2.32 /MT/GCV.
- Price Variation: Statutory variations (increase/decrease) in taxes and duties, or introduction/withdrawal of new taxes, will be passed through during the contract period with documentary evidence.
- Billing: Invoices are to be submitted on a “Batch basis” (fortnightly) in triplicate, along with supporting documents like weighment certificates, NPL quality reports, delivery challans, and declarations on paddy procurement and pellet composition.
- Payment Terms: 100% of the payable amount will be released via Electronic Fund Transfer (EFT) within 15 days after receipt of the complete invoice and adjustments. Tax at source (TDS) will be deducted as per Income Tax Act, 1961.
5. Quality Standards and Adjustments
- Technical Specifications (Table-2): Bidders must guarantee specific technical parameters for the agro residue-based biomass pellets:
- Diameter: Not more than 25mm, no other dimension exceeding 35mm.
- Fines%: Not more than 5%.
- Moisture (ARB): Not more than 14%.
- GCV (ARB): To be quoted by the Bidder, not less than 2800 Kcal/Kg (acceptable/preferable limit 2800-4000 Kcal/Kg).
- Testing: NPL will conduct sampling, preparation, and testing at its plant as per BIS/ASTM/ISO standards. Bidders’ representatives can witness these processes via CCTV footage.
- Price Adjustment for Quality:
- GCV: Pro-rata upward or downward price adjustment will be applied for GCV variations within the acceptable limit (2800-4000 Kcal/Kg). For GCV below 2800 Kcal/Kg, further downward adjustments apply (e.g., 0.75x for 2400-2800 Kcal/Kg, 0.50x for 2000-2400 Kcal/Kg). Consignments with GCV less than 2000 Kcal/Kg will be rejected with no payment.
- Excess Fines: Recovery will be applied if fines exceed 5%.
- Rejection Criteria: Consignments will be rejected if the Total Moisture (ARB) content is more than 14%. Rejected consignments must be carried back by the contractor at their own cost.
6. Contract Performance and Penalties
- Earnest Money Deposit (EMD): An EMD is required, ranging from 20 Lakh INR (for 70-99 TPD quoted quantity) to 25 Lakh INR (for 100 – 140 TPD quoted quantity). EMD may be forfeited for bid withdrawal/modification, misrepresentation, or failure to furnish CPS.
- Contract Performance Security (CPS): The successful bidder must submit CPS equivalent to 3.0% of the basic Contract amount (excluding GST). EMD will be converted, and any balance must be submitted within 10 days of the Letter of Award (LoA) or Purchase Order (PO) issuance. Failure to furnish CPS is a material breach. The CPS is maintained throughout the contract and can be forfeited for unsatisfactory performance.
- Liquidated Damages (LD): LD for short supply: No LD for initial 10 days of supply or for monthly short supply up to 15% of the aggregate daily delivery schedule. For short supply exceeding 15%, LD will be recovered at 5% of the awarded price for the shortfall quantities. Total LD shall not exceed 5% of the total Contract amount.
- Safety and Compliance Penalties: Penalties apply for violations such as drivers under the influence of alcohol/drugs, over-speeding, or improper overtaking. Contractor must comply with all Applicable Laws, including labor and industrial laws.
- Blacklisting: NPL has criteria for blacklisting, including defaults, influencing processes, false information, bid withdrawal without justification, failure to start supplies, or willful non-performance.
7. General Terms
- Bid Validity: Submitted bids must be valid for acceptance as per the validity table in clause 8 of Vol.-I, typically one year from the Price Bid opening date.
- Contract Period: The contract period is a minimum of one (1) year from the date of issuance of LoA/first PO.
- Confidentiality: All information in the Bid Document is strictly confidential and must not be disclosed.
- Governing Law and Jurisdiction: The Bid Document and Contract are governed by Indian laws, and legal proceedings are subject to the exclusive jurisdiction of courts in Chandigarh, India.
- Dispute Resolution: Disputes will initially be settled through mutual discussions, and if unresolved, through arbitration in Chandigarh under the Arbitration and Conciliation Act, 1996.
- Bidders are advised to perform their own due diligence, assess all factors affecting the work or cost, and review all annexures and terms thoroughly before submitting their bid.
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