Central Coalfields Limited - CCL

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No
In line with the TC deliberation at P-13 to 14/N, the firm, M/s Surya Udyog was asked to provide
Price justification vide letter no. 5530 dtd.24.12.11 (P-179/C). In response, the firm vide their letter no.413
dtd.26.12.11 (P-168/C to 177/C) has enclosed Purchase Order copies of TTPS along with a CS showing
basic value and order value of each motor. The firm has also indicated that as per the WPI price has
increased by 21% from last order date of TTPS. However, the firm has allowed a discount of 2.5% on items
no.1 to 5, 3% on item no.6 and no discount on item no.7.
Revised Price C/S duly vetted by associate finance is at P-178/C. The price status of the different
motors after discount and comparison with the ordered rate of TTPS is as follows:-
Item Description
Qty Quoted
price ex-
Works (Rs)
Price
after
discount
Ordered price of
TTPS after discount
of 1%
01 Induction Motors, 6.3 KW 02 20485.95 19973.80 22861.00 (5.5KW)
(July 07)
02 Induction Motors, 15 KW 06 37864.91 36918.29 38040.00 (9.3KW)
(July 07)
03 Induction Motors, 18.5 04 66059.84 64408.34 64577.00 (11 KW)
KW
(Dec 07)
04 Induction Motors, 66 KW 01 189296.46 184564.05 185542.00(55 KW)
(July 07)
05 Induction Motors, 76 KW 01 219076.16 213599.26 237021.84 (75 KW)
(July 07)
06 Induction Motors, 90 KW 01 340738.89 330516.72 275018.00 (80 KW)
(July 07)
07 Induction Motors, 132 02 189296.46 189296.46 414314.00 (125 KW)
KW
(July 07)
Diff.
Diff.
WPI
-12.63% +21.20%
-2.94% +21.20%
-0.26% +21.51%
-0.52% +21.20%
-9.88% +21.20%
+20.18 +21.20%
%
-54.31% +21.20%
The price justification furnished by the firm was forwarded to the technical deptt. for analysis. The
analysis of the price justification has been done by the technical deptt. at P- 15/N. The technical deptt. has
found the price justification as reasonable.
From the price comparison chart shown above, it is seen that the offered prices of all the tendered
items after considering discount allowed by the firm on items no. 1 to 6 are lower by (-)0.26% to (-)54.31%
than the ordered rates of TTPS (of lower KW) except item no. 6 where the offered rate is +20.18%. The
WPI of Electric Motors has also been looked into. There has been increase of +21.20% / 21.51% in the WPI
of Electric Motors from July ‘07/ Dec ’07 to June’11 (146.3-120.7 / 120.4)(P-186 & 187/C). The technical
member pointed out that the ordered rate of the items of TTPS, considered for comparison is of lower
Kilowatt than the tendered items. However, the Frame sizes and RPM are almost the same.
TC was also apprised that the offered price of item no 7 i.e. of 132KW is almost (-) 54.31% lower
than the rate of TTPS. The anomaly in the rates of 90KW & 132KW was also discussed with the
representative of the firm during the price justification. The firm’s representative had informed that they had
wrongly quoted a lower rate for item no.7 i.e. 132 KW Motor. However, the firm agreed to accept the
quoted rate of the item.
A letter was sent to TTPS to confirm regarding issuance of the two order copies submitted by the
firm, M/s Surya Udyog (P-179/C). SE, TTPS has sent back attested copies of the Purchase Orders placed by
them on M/s Surya Udyog (P-180/C to 185/C).
Deliberations
TC noted that that against Open Advertised Electronic Tender, offers were received from two firms.
As recommended earlier at 10/N to 11/N, Price bid of only one techno-commercially suitable firm, M/s
Surya Udyog was opened.
TC further noted that no LPP of the tendered items are available.
As per the TCR at P-13/N to 14/N, the firm was asked for price justification. While providing price
justification the firm offered discount of 2.5% on items 1 to 5 and 3% on item 6. The offered prices of item
no. 1 to 5, after discount, are lower by (-) 0.26% to (-) 54.31% from the ordered rates of TTPS. Besides, the
ordered rates of TTPS are for lower Kilowatts. For item no. 6 i.e. 90KW motor, the offered price is +20.18%