Annexure - 1 to SCC

ANNEXURE D

BANK GUARANTEE FOR PERFORMANCE SECURITY

Bank Guarantee No:

Date:
To
NAME
& ADDRESSES OF THE BENEFICIARY

Dear Sirs,
In consideration of Bharat Heavy Electricals Limited (hereinafter referred to as the 'Employer' which expression
shall unless repugnant to the context or meaning thereof, include its successors and permitted assigns)
incorporated under the Companies Act, 1956 and having its registered office at _______________________1
through its Unit at…………………..(name of the Unit) having awarded to ( Name of the Vendor / Contractor /
Supplier) with its registered office at_________2 hereinafter referred to as the ' Vendor / Contractor / Supplier ',
which expression shall unless repugnant to the context or meaning thereof, include its successors and permitted
assigns), a contract Ref No……………………dated ………………………………….3 valued at Rs…………4 (
Rupees ------------------------)/FC………………(in words………..) for …………………………5 (hereinafter called the
'Contract') and the Vendor / Contractor / Supplier having agreed to provide a Contract Performance Bank
Guarantee, equivalent to ……% (…. Percent) of the said value of the Contract to the Employer for the faithful
performance of the Contract,

we, …………………, (hereinafter referred to as the Bank), having registered/Head office at ……………. and inter
alia a branch at ………… being the Guarantor under this Guarantee, hereby, irrevocably and unconditionally
undertake to forthwith and immediately pay to the Employer any sum or sums upto a maximum amount of Rs --
------------------ 6 ( Rupees ------------------------) without any demur, immediately on first demand from the Employer
and without any reservation, protest, and recourse and without the Employer needing to prove or demonstrate
reasons for its such demand.
Any such demand made on the Bank shall be conclusive as regards the amount due and payable by the Bank
under this guarantee. However, our liability under this guarantee shall be restricted to an amount not exceeding
Rs. _______________.

We undertake to pay to the Employer any money so demanded notwithstanding any dispute or disputes raised
by the Vendor / Contractor / Supplier in any suit or proceeding pending before any Court or Tribunal, Arbitrator
or any other authority, our liability under this present being absolute and unequivocal.

The payment so made by us under this Guarantee shall be a valid discharge of our liability for payment
thereunder and the Vendor / Contractor / Supplier shall have no claim against us for making such payment.

We the ……………………bank further agree that the guarantee herein contained shall remain in full force and
effect during the period that would be taken for the performance of the said Contract/satisfactory completion of
the performance guarantee period as per the terms of the Contract and that it shall continue to be enforceable till

18 | P a g e
all the dues of the Employer under or by virtue of the said Contract have been fully paid and its claims satisfied
or discharged.
We ……………..BANK further agree with the Employer that the Employer shall have the fullest liberty without
our consent and without affecting in any manner our obligations hereunder to vary any of the terms and
conditions of the said Contract or to extend time of performance by the said Vendor / Contractor / Supplier from
time to time or to postpone for any time or from time to time any of the powers exercisable by the Employer
against the said Vendor / Contractor / Supplier and to forbear or enforce any of the terms and conditions relating
to the said Contract and we shall not be relieved from our liability by reason of any such variation, or extension
being granted to the said Vendor / Contractor / Supplier or for any forbearance, act or omission on the part of the
Employer or any indulgence by the Employer to the said Vendor / Contractor / Supplier or by any such matter
or thing whatsoever which under the law relating to sureties would but for this provision have effect of so
relieving us.

The Bank also agrees that the Employer at its option shall be entitled to enforce this Guarantee against the Bank
as a principal debtor, in the first instance without proceeding against the Vendor / Contractor / Supplier and
notwithstanding any security or other guarantee that the Employer may have in relation to the Vendor /
Contractor / Supplier 's liabilities.

This Guarantee shall remain in force upto and including…………………………….. 7 and shall be extended from
time to time for such period as may be desired by Employer.
This Guarantee shall not be determined or affected by liquidation or winding up, dissolution or change of
constitution or insolvency of the Vendor / Contractor / Supplier but shall in all respects and for all purposes be
binding and operative until payment of all money payable to the Employer in terms thereof.

Unless a demand or claim under this guarantee is made on us in writing on or before the
……………………………….8we shall be discharged from all liabilities under this guarantee thereafter.

We, ……………… BANK lastly undertake not to revoke this guarantee during its currency except with the
previous consent of the Employer in writing.
Notwithstanding anything to the contrary contained hereinabove:
a) The liability of the Bank under this Guarantee shall not exceed………………………… 6
b) This Guarantee shall be valid up to ………………7
c) Unless the Bank is served a written claim or demand on or before _____________8 all rights under this
guarantee shall be forfeited and the Bank shall be relieved and discharged from all liabilities under this
guarantee irrespective of whether or not the original bank guarantee is returned to the Bank.

We, _____________ Bank, have power to issue this Guarantee under law and the undersigned as a duly
authorized person has full powers to sign this Guarantee on behalf of the Bank.

For and on behalf of

(Name of the Bank)

Dated……………….
Place of Issue……………….
19 | P a g e
1
NAME AND ADDRESS OF EMPLOYER I.e Bharat Heavy Electricals Limited
2
NAME AND ADDRESS OF THE VENDOR /CONTRACTOR / SUPPLIER.
3
DETAILS ABOUT THE NOTICE OF AWARD/CONTRACT REFERENCE
4
CONTRACT VALUE
5
PROJECT/SUPPLY DETAILS
6
BG AMOUNT IN FIGURES AND WORDS
7
VALIDITY DATE
8
DATE OF EXPIRY OF CLAIM PERIOD

Note:

1. Units are advised that expiry of claim period may be kept 3-6 3 6 months after validity date.
date It may be
ensured that the same is in line with the agreement/ contract entered with the Vendor.

2. The BG should be on Non-Judicial Stamp paper/e-stamp paper of appropriate value as per Stamp Act
prevailing in the State(s) where the BG is submitted or is to be acted upon or the rate prevailing in the
State where the BG was executed, whichever is higher. The Stamp Paper/e-stamp paper shall be
purchased in the name of Vendor/Contractor/Supplier /Bank issuing the guarantee.

3. In line with the GCC, SCC or contractual terms, Unit may carry out minor modifications in the Standard
BG Formats. If required, such modifications may be carried out after taking up appropriately with the
Unit/Region’s Law Deptt.

4. In Case of Bank Guarantees submitted by Foreign Vendors-

a. From Nationalized/Public Sector / Private Sector/ Foreign Banks (BG issued by Branches
in India) can be accepted subject to the condition that the Bank Guarantee should be
enforceable in the town/city or at nearest branch where the Unit is located i.e. Demand can be
presented at the Branch located in the town/city or at nearest branch where the Unit is located.

b. From Foreign Banks (wherein Foreign Vendors intend to provide BG from local branch of
the Vendor country’s Bank)

b.1 In such cases, in the Tender Enquiry/ Contract itself, it may be clearly specified that
Bank Guarantee issued by any of the Consortium Banks only will be accepted by
BHEL. As such, Foreign Vendor needs to make necessary arrangements for issuance of
Counter- Guarantee by Foreign Bank in favour of the Indian Bank’s (BHEL’s Consortium
Bank) branch in India. It is advisable that all charges for issuance of Bank Guarantee/
counter- Guarantee should be borne by the Foreign Vendor. The tender stipulation
should clearly specify these requirements.

b.2 In case, Foreign Vendors intend to provide BG from Overseas Branch of our
Consortium Bank (e.g. if a BG is to be issued by SBI Frankfurt), the same is acceptable.
However, the procedure at sl.no. b.1 will required to be followed.

b.3 The BG issued may preferably be subject to Uniform Rules for Demand Guarantees
(URDG) 758 (as amended from time to time). The BG Format provided to them should
clearly specify the same.

20 | P a g e
 Format - I
DECLARATION REGARDING MINIMUM LOCAL CONTENT IN LINE WITH
REVISED PUBLIC PROCUREMENT (PREFERENCE TO MAKE IN INDIA), ORDER 2017 DATED 04TH JUNE,
2020 AND SUBSEQUENT ORDER(S)
(To be typed and submitted in the Letter Head of the Entity/Firm providing certificate as applicable)
--------------------------------------------------------------------------------------------------------------------------------------------
To,

(Write Name & Address of Officer of BHEL inviting the Tender)

Dear Sir,

Sub: Declaration reg. minimum local content in line with Public Procurement (Preference to Make in India),
Order 2017-Revision, dated 04th June, 2020 and subsequent order(s).

Ref: 1) Tender Specification No:

2) All other pertinent issues till date

We hereby certify that the items/works/services offered by……………………………………… (specify the name of the
organization here) has a local content of _______ % and this meets the local content requirement for ‘Class-I
local supplier’ / ‘Class II local supplier’ ** as defined in Public Procurement (Preference to Make in India),
Order 2017-Revision dated 04.06.2020 issued by DPIIT and subsequent order(s).

The details of the location(s) at which the local value addition is made are as follows:
1. ______________ 2. ______________
3. ______________ 4. ______________
…
Thanking you,
Yours faithfully,

(Signature, Date & Seal of

Authorized Signatory of the Bidder)
** - Strike out whichever is not applicable.

Note:
1. Bidders to note that above format Duly filled & signed by authorized signatory, shall be submitted
along with the techno-commercial offer.
2. In case the bidder’s quoted value is in excess of Rs. 10 crores, the authorized signatory for this
declaration shall necessarily be the statutory auditor or cost auditor of the company (in the case of
companies) or a practising cost accountant or practicing chartered accountant (in respect of
suppliers other than companies).
3. In the event of false declaration, actions as per the above order and as per BHEL Guidelines shall be
initiated against the bidder
 FORMAT FOR NO DEVIATION CERTIFICATE
(To be submitted in the bidder's letter head)

TO
BHARAT HEAVY ELECTRICALS LIMITED,
Industrial Systems Group, Prof. CNR Rao Circle,
Malleshwaram Bangalore – 560012

Sub : No deviation certificate

Job : ----
Ref : Your enquiry No -
All the pertinent issues till date.

Dear Sirs,

With reference to above, this is to confirm that as per tender conditions, we have visited site
before submission of our offer and noted the job content &site conditions etc. We also confirm
that we have not changed/ modified the tender documents as appeared in the website/ issued by
you and in case of such observance at any stage, it shall be treated as null and void.

We hereby confirm that we have not taken any deviation from tender clauses together with other
references as enumerated in the above referred NIT. We hereby confirm our unqualified
acceptance to all terms &conditions, unqualified compliance to technical specification, integrity
pact (if applicable) and acceptance to reverse auctioning process.

In the event of observance of any deviation in any part of our offer at a later date whether
implicit or explicit, the deviations shall stand null &void.

We confirm to have submitted offer in accordance with tender instructions and as per aforesaid
references.

Thanking you,

Yours faithfully,

(Signature, date & seal of authorized representative of the bidder)

 FINANCIAL STANDING UNDERTAKING
(To be submitted in the bidder's letter head)

GeM Bid No.

We ---------------------------------------- (name of bidder) do declare that the following

a) We are not under liquidation
b) We are not under court receivership or similar proceedings
c) We are not under bankrupt.

We declare that we are financially sound and have financial strength to execute this
order.

Name and designation of bidder with company seal

 Annexure - 1 to SCC
ANNEXURE D

BANK GUARANTEE FOR PERFORMANCE SECURITY

Bank Guarantee No:

Date:
To
NAME
& ADDRESSES OF THE BENEFICIARY

Dear Sirs,
In consideration of Bharat Heavy Electricals Limited (hereinafter referred to as the 'Employer' which expression
shall unless repugnant to the context or meaning thereof, include its successors and permitted assigns)
incorporated under the Companies Act, 1956 and having its registered office at _______________________1
through its Unit at…………………..(name of the Unit) having awarded to ( Name of the Vendor / Contractor /
Supplier) with its registered office at_________2 hereinafter referred to as the ' Vendor / Contractor / Supplier ',
which expression shall unless repugnant to the context or meaning thereof, include its successors and permitted
assigns), a contract Ref No……………………dated ………………………………….3 valued at Rs…………4 (
Rupees ------------------------)/FC………………(in words………..) for …………………………5 (hereinafter called the
'Contract') and the Vendor / Contractor / Supplier having agreed to provide a Contract Performance Bank
Guarantee, equivalent to ……% (…. Percent) of the said value of the Contract to the Employer for the faithful
performance of the Contract,

we, …………………, (hereinafter referred to as the Bank), having registered/Head office at ……………. and inter
alia a branch at ………… being the Guarantor under this Guarantee, hereby, irrevocably and unconditionally
undertake to forthwith and immediately pay to the Employer any sum or sums upto a maximum amount of Rs --
------------------ 6 ( Rupees ------------------------) without any demur, immediately on first demand from the Employer
and without any reservation, protest, and recourse and without the Employer needing to prove or demonstrate
reasons for its such demand.
Any such demand made on the Bank shall be conclusive as regards the amount due and payable by the Bank
under this guarantee. However, our liability under this guarantee shall be restricted to an amount not exceeding
Rs. _______________.

We undertake to pay to the Employer any money so demanded notwithstanding any dispute or disputes raised
by the Vendor / Contractor / Supplier in any suit or proceeding pending before any Court or Tribunal, Arbitrator
or any other authority, our liability under this present being absolute and unequivocal.

The payment so made by us under this Guarantee shall be a valid discharge of our liability for payment
thereunder and the Vendor / Contractor / Supplier shall have no claim against us for making such payment.

We the ……………………bank further agree that the guarantee herein contained shall remain in full force and
effect during the period that would be taken for the performance of the said Contract/satisfactory completion of
the performance guarantee period as per the terms of the Contract and that it shall continue to be enforceable till

18 | P a g e
all the dues of the Employer under or by virtue of the said Contract have been fully paid and its claims satisfied
or discharged.
We ……………..BANK further agree with the Employer that the Employer shall have the fullest liberty without
our consent and without affecting in any manner our obligations hereunder to vary any of the terms and
conditions of the said Contract or to extend time of performance by the said Vendor / Contractor / Supplier from
time to time or to postpone for any time or from time to time any of the powers exercisable by the Employer
against the said Vendor / Contractor / Supplier and to forbear or enforce any of the terms and conditions relating
to the said Contract and we shall not be relieved from our liability by reason of any such variation, or extension
being granted to the said Vendor / Contractor / Supplier or for any forbearance, act or omission on the part of the
Employer or any indulgence by the Employer to the said Vendor / Contractor / Supplier or by any such matter
or thing whatsoever which under the law relating to sureties would but for this provision have effect of so
relieving us.

The Bank also agrees that the Employer at its option shall be entitled to enforce this Guarantee against the Bank
as a principal debtor, in the first instance without proceeding against the Vendor / Contractor / Supplier and
notwithstanding any security or other guarantee that the Employer may have in relation to the Vendor /
Contractor / Supplier 's liabilities.

This Guarantee shall remain in force upto and including…………………………….. 7 and shall be extended from
time to time for such period as may be desired by Employer.
This Guarantee shall not be determined or affected by liquidation or winding up, dissolution or change of
constitution or insolvency of the Vendor / Contractor / Supplier but shall in all respects and for all purposes be
binding and operative until payment of all money payable to the Employer in terms thereof.

Unless a demand or claim under this guarantee is made on us in writing on or before the
……………………………….8we shall be discharged from all liabilities under this guarantee thereafter.

We, ……………… BANK lastly undertake not to revoke this guarantee during its currency except with the
previous consent of the Employer in writing.
Notwithstanding anything to the contrary contained hereinabove:
a) The liability of the Bank under this Guarantee shall not exceed………………………… 6
b) This Guarantee shall be valid up to ………………7
c) Unless the Bank is served a written claim or demand on or before _____________8 all rights under this
guarantee shall be forfeited and the Bank shall be relieved and discharged from all liabilities under this
guarantee irrespective of whether or not the original bank guarantee is returned to the Bank.

We, _____________ Bank, have power to issue this Guarantee under law and the undersigned as a duly
authorized person has full powers to sign this Guarantee on behalf of the Bank.

For and on behalf of

(Name of the Bank)

Dated……………….
Place of Issue……………….
19 | P a g e
1
NAME AND ADDRESS OF EMPLOYER I.e Bharat Heavy Electricals Limited
2
NAME AND ADDRESS OF THE VENDOR /CONTRACTOR / SUPPLIER.
3
DETAILS ABOUT THE NOTICE OF AWARD/CONTRACT REFERENCE
4
CONTRACT VALUE
5
PROJECT/SUPPLY DETAILS
6
BG AMOUNT IN FIGURES AND WORDS
7
VALIDITY DATE
8
DATE OF EXPIRY OF CLAIM PERIOD

Note:

1. Units are advised that expiry of claim period may be kept 3-6 3 6 months after validity date.
date It may be
ensured that the same is in line with the agreement/ contract entered with the Vendor.

2. The BG should be on Non-Judicial Stamp paper/e-stamp paper of appropriate value as per Stamp Act
prevailing in the State(s) where the BG is submitted or is to be acted upon or the rate prevailing in the
State where the BG was executed, whichever is higher. The Stamp Paper/e-stamp paper shall be
purchased in the name of Vendor/Contractor/Supplier /Bank issuing the guarantee.

3. In line with the GCC, SCC or contractual terms, Unit may carry out minor modifications in the Standard
BG Formats. If required, such modifications may be carried out after taking up appropriately with the
Unit/Region’s Law Deptt.

4. In Case of Bank Guarantees submitted by Foreign Vendors-

a. From Nationalized/Public Sector / Private Sector/ Foreign Banks (BG issued by Branches
in India) can be accepted subject to the condition that the Bank Guarantee should be
enforceable in the town/city or at nearest branch where the Unit is located i.e. Demand can be
presented at the Branch located in the town/city or at nearest branch where the Unit is located.

b. From Foreign Banks (wherein Foreign Vendors intend to provide BG from local branch of
the Vendor country’s Bank)

b.1 In such cases, in the Tender Enquiry/ Contract itself, it may be clearly specified that
Bank Guarantee issued by any of the Consortium Banks only will be accepted by
BHEL. As such, Foreign Vendor needs to make necessary arrangements for issuance of
Counter- Guarantee by Foreign Bank in favour of the Indian Bank’s (BHEL’s Consortium
Bank) branch in India. It is advisable that all charges for issuance of Bank Guarantee/
counter- Guarantee should be borne by the Foreign Vendor. The tender stipulation
should clearly specify these requirements.

b.2 In case, Foreign Vendors intend to provide BG from Overseas Branch of our
Consortium Bank (e.g. if a BG is to be issued by SBI Frankfurt), the same is acceptable.
However, the procedure at sl.no. b.1 will required to be followed.

b.3 The BG issued may preferably be subject to Uniform Rules for Demand Guarantees
(URDG) 758 (as amended from time to time). The BG Format provided to them should
clearly specify the same.

20 | P a g e
 BHEL-IP AA:SSP:IP:R03 dtd 01-04-2022

Annexure-1
INTEGRITY PACT

Between
Bharat Heavy Electricals Ltd. (BHEL), a company registered under the Companies Act 1956 and having its
registered office at "BHEL House", Siri Fort, New Delhi - 110049 (India) hereinafter referred to as “The
Principal", which expression unless repugnant to the context or meaning hereof shall include its successors or
assigns of the ONE PART

and

_____________________, (description of the party along with address), hereinafter referred to as “The
Bidder/ Contractor" which expression unless repugnant to the context or meaning hereof shall include its
successors or assigns of the OTHER PART
Preamble

The Principal intends to award, under laid-down organizational procedures, contract/s for ______________
________________________________________________________________________________________
________ (hereinafter referred to as “Contract”). The Principal values full compliance with all relevant laws
of the land, rules and regulations, and the principles of economic use of resources, and of fairness and
transparency in its relations with its Bidder(s)/ Contractor(s).

In order to achieve these goals, the Principal will appoint panel of Independent External Monitor(s) (IEMs),
who will monitor the tender process and the execution of the contract for compliance with the principles
mentioned above.
Section 1- Commitments of the Principal
1.1 The Principal commits itself to take all measures necessary to prevent corruption and to observe
the following principles: -

1.1.1 No employee of the Principal, personally or through family members, will in connection with the
tender for, or the execution of a contract, demand, take a promise for or accept, for self or third
person, any material or immaterial benefit which the person is not legally entitled to.

1.1.2 The Principal will, during the tender process treat all Bidder(s) with equity and reason. The Principal
will in particular, before and during the tender process, provide to all Bidder(s) the same
information and will not provide to any Bidder(s) confidential/ additional information through
which the Bidder(s) could obtain an advantage in relation to the tender process or the contract
execution.

1.1.3 The Principal will exclude from the process all known prejudiced persons.

1.2 If the Principal obtains information on the conduct of any of its employees which is a penal offence
under the Indian Penal Code 1860 and Prevention of Corruption Act 1988 or any other statutory
penal enactment, or if there be a substantive suspicion in this regard, the Principal will inform its
Vigilance Office and in addition can initiate disciplinary actions.

Section 2 - Commitments of the Bidder(s)/ Contractor(s)

2.1 The Bidder(s)/ Contractor(s) commit himself to take all measures necessary to prevent corruption.
The Bidder(s)/ Contractor(s) commits himself to observe the following principles during
participation in the tender process and during the contract execution.

Page 1 of 5
 BHEL-IP AA:SSP:IP:R03 dtd 01-04-2022

2.1.1 The Bidder(s)/ Contractor(s) will not, directly or through any other person or firm, offer, promise or
give to the Principal or to any of the Principal's employees involved in the tender process or the
execution of the contract or to any third person any material, immaterial or any other benefit which
he/ she is not legally entitled to, in order to obtain in exchange any advantage of any kind
whatsoever during the tender process or during the execution of the contract.

2.1.2 The Bidder(s)/ Contractor(s) will not enter with other Bidder(s) into any illegal or undisclosed
agreement or understanding, whether formal or informal. This applies in particular to prices,
specifications, certifications, subsidiary contracts, submission or non-submission of bids or any
other actions to restrict competitiveness or to introduce cartelization in the bidding process.

2.1.3 The Bidder(s)/ Contractor(s) will not commit any penal offence under the relevant Indian Penal
Code (IPC) and Prevention of Corruption Act; further the Bidder(s)/ Contractor(s) will not use
improperly, for purposes of competition or personal gain, or pass on to others, any information or
document provided by the Principal as part of the business relationship, regarding plans, technical
proposals and business details, including information contained or transmitted electronically.

2.1.4 Foreign Bidder(s)/ Contractor(s) shall disclose the name and address of agents and representatives
in India and Indian Bidder(s)/ Contractor(s) to disclose their foreign principals or associates. The
Bidder(s)/ Contractor(s) will, when presenting his bid, disclose any and all payments he has made,
and is committed to or intends to make to agents, brokers or any other intermediaries in connection
with the award of the contract.

2.2 The Bidder(s)/ Contractor(s) will not instigate third persons to commit offences outlined above or
be an accessory to such offences.

2.3 The Bidder(s)/ Contractor(s) shall not approach the Courts while representing the matters to IEMs
and shall await their decision in the matter.

Section 3 - Disqualification from tender process and exclusion from future contracts

If the Bidder(s)/ Contractor(s), before award or during execution has committed a transgression
through a violation of Section 2 above, or acts in any other manner such as to put his reliability or
credibility in question, the Principal is entitled to disqualify the Bidder(s)/ Contractor(s) from the
tender process , terminate the contract, if already awarded, exclude from future business dealings
and/ or take action as per the separate "Guidelines on Banning of Business dealings with Suppliers/
Contractors", framed by the Principal.

Section 4 - Compensation for Damages

4.1 If the Principal has disqualified the Bidder (s) from the tender process before award / order
acceptance according to Section 3, the Principal is entitled to demand and recover the damages
equivalent to Earnest Money Deposit/ Bid Security.

4.2 If the Principal is entitled to terminate the Contract according to Section 3, or terminates the
Contract in application of Section 3 above , the Bidder(s)/ Cotractor (s) transgression through a
violation of Section 2 above shall be construed breach of contract and the Principal shall be-entitled
to demand and recover from the Contractor an amount equal to 5% of the contract value or the
amount equivalent to Security Deposit/ Performance Bank Guarantee , whichever is higher, as
damages, in addition to and without prejudice to its right to demand and recover compensation for
any other loss or damages specified elsewhere in the contract.

Page 2 of 5
 BHEL-IP AA:SSP:IP:R03 dtd 01-04-2022

Section 5 - Previous Transgression

5.1 The Bidder declares that no previous transgressions occurred in the last 3 (three) years with any
other company in any country conforming to the anti-corruption approach or with any other Public
Sector Enterprise in India that could justify his exclusion from the tender process.

5.2 If the Bidder makes incorrect statement on this subject, he can be disqualified from the tender
process or the contract, if already awarded, can be terminated for such reason or action can be
taken as per the separate "Guidelines on Banning of Business dealings with Suppliers/ Contractors",
framed by the Principal.

Section 6 - Equal treatment of all Bidder (s)/ Contractor (s) / Sub-contractor (s)

6.1 The Principal will enter into Integrity Pacts with identical conditions as this Integrity Pact with all
Bidders and Contractors.

6.2 In case of Sub-contracting, the Principal Contractor shall take the responsibility of the adoption of
Integrity Pact by the Sub-contractor(s) and ensure that all Sub-contractors also sign the Integrity
Pact.

6.3 The Principal will disqualify from the tender process all Bidders who do not sign this Integrity Pact
or violate its provisions.

Section 7 - Criminal Charges against violating Bidders/ Contractors /Subcontractors

If the Principal obtains knowledge of conduct of a Bidder, Contractor or Subcontractor, or of an

employee or a representative or an associate of a Bidder, Contractor or Subcontractor which
constitutes corruption, or if the Principal has substantive suspicion in this regard, the Principal will
inform the Vigilance Office.

Section 8 -Independent External Monitor(s)

8.1 The Principal appoints competent and credible panel of Independent External Monitor (s) (IEMs)
for this Integrity Pact. The task of the IEMs is to review independently and objectively, whether
and to what extent the parties comply with the obligations under this Integrity Pact.

8.2 The IEMs are not subject to instructions by the representatives of the parties and performs his
functions neutrally and independently. He reports to the CMD, BHEL.

8.3 The IEMs shall be provided access to all documents/ records pertaining to the Contract, for which
a complaint or issue is raised before them as and when warranted. However, the
documents/records/information having National Security implications and those documents which
have been classified as Secret/Top Secret are not to be disclosed.

8.4 The Principal will provide to the IEMs sufficient information about all meetings among the parties
related to the Contract provided such meetings could have an impact on the contractual relations
between the Principal and the Contractor. The parties offer to the IEMs the option to participate in
such meetings.

Page 3 of 5
 BHEL-IP AA:SSP:IP:R03 dtd 01-04-2022

8.5 The advisory role of IEMs is envisaged as that of a friend, philosopher and guide. The advice of IEMs
would not be legally binding and it is restricted to resolving issues raised by a Bidder regarding any
aspect of the tender which allegedly restricts competition or bias towards some Bidders. At the
same time, it must be understood that IEMs are not consultants to the Management. Their role is
independent in nature and the advice once tendered would not be subject to review at the request
of the organization.

8.6 For ensuring the desired transparency and objectivity in dealing with the complaints arising out of
any tendering process or during execution of Contract, the matter should be examined by the full
panel of IEMs jointly, who would look into the records, conduct an investigation, and submit their
joint recommendations to the Management.

8.7 The IEMs would examine all complaints received by them and give their recommendations/ views
to the CMD, BHEL at the earliest. They may also send their report directly to the CVO, in case of
suspicion of serious irregularities requiring legal/ administrative action. Only in case of very
serious issue having a specific, verifiable Vigilance angle, the matter should be reported directly to
the Commission. IEMs will tender their advice on the complaints within 30 days.

8.8 The CMD, BHEL shall decide the compensation to be paid to the IEMs and its terms and conditions.

8.9 IEMs should examine the process integrity, they are not expected to concern themselves with fixing
of responsibility of officers. Complaints alleging mala fide on the part of any officer of the Prinicpal
should be looked into by the CVO of the Principal.

8.10 If the IEMs have reported to the CMD, BHEL, a substantiated suspicion of an offence under relevant
Indian Penal Code / Prevention of Corruption Act, and the CMD, BHEL has not, within reasonable
time, taken visible action to proceed against such offence or reported it to the Vigilance Office, the
IEMs may also transmit this information directly to the Central Vigilance Commissioner,
Government of India.

8.11 After award of work, the IEMs shall look into any issue relating to execution of Contract, if
specifically raised before them. As an illustrative example, if a Contractor who has been awarded
the Contract, during the execution of Contract, raises issue of delayed payment etc. before the
IEMs, the same shall be examined by the panel of IEMs. Issues like warranty/ guarantee etc. shall
be outside the purview of IEMs.

8.12 However, the IEMs may suggest systemic improvements to the management of the Principal, if
considered necessary, to bring about transparency, equity and fairness in the system of
procurement.

8.13 The word `Monitor' would include both singular and plural.

Section 9 - Pact Duration

9.1 This Integrity Pact shall be operative from the date this Integrity Pact is signed by both the parties
till the final completion of contract for successful Bidder, and for all other Bidders 6 months after
the Contract has been awarded. Any violation of the same would entail disqualification of the
bidders and exclusion from future business dealings.

9.2 If any claim is made/ lodged during currency of this Integrity Pact, the same shall be binding and
continue to be valid despite the lapse of this Pact as specified above, unless it is discharged/
determined by the CMD, BHEL.

Page 4 of 5