Bharat Heavy Electricals Limited oa (A Govt Of India Undertaking) PEM — POWER PROJECT ENGINEERING INSTITUTE Ref no,: PW/PE/PG/MAL/P-1584/10 Date: 10.02.2011 LETTER OF INTENT (ESC for (2X600MW) Shree M/s. BAJAJ ELECTRICAL LTD. 205-206,BAKSHI HOUSE, 40-41,NEHRU PLACE NEW DELHI-110019 Kind Attn: Mr, Sreemany Sraban SUB: L.O.1. FOR E&C OF STATION LIGHTING SYSTEM FOR 2X600MW SHREE SINGAJL ‘TPP PROJECT LOI No: PW/PE/PG/MAL/P-1584/10, Dtd- 02.02.2011 Dear Sir, We are pleased to release this Letter of Intent (LOI) no: PW/PE/PG/MAL/P-1584/10,Dtd- 02.02.2011 for supply of E&C as per details given below, based on your offer under reference and various technica/commercial clarifications/confirmations & discussions against our tender enquiry no.: PE/PG/MAL/E-2586/2010 Dt:12.08.2010 (2X600MW) SHREE SINGAII TPP PROJECT. 1. Scope : Supply of E&C: EAC, including unloading, storage and handling at site, erection, trial run at site, and handing over to the customer in line with drawings! documents’ test procedures approved by BHEL/Customer inclusive of all prevailing Taxes and duties and other levies for STATION LIGHTING SYSTEM as per the scope of this project including Erection And Commissioning spares, Maintenance Tools and Tackles as required for total scope defined as technical specification no. PE-TS-327-558-E001 taking into account all clarifications, confirmations obtain. Detailed break-up of prices are as per Annexure -III-B. 2. Contraet Price: a) E&C Charges ¥ 1,22,27,146.36/- b) Service Tax on E&C @ 10.3% &12,59,396.08/- ©) Total E&C Charges % 1,34,86,542.44/- 3. Terms & Conditions:- A. Prices: - Firm tll complete execution of the order. B. Delivery FOR Dispatch Station) E&C shall be 03 (Three) months from date of supply or as per site requirement, bg Page 1 of 2Bharat Heavy Electricals Limited (A Govt, Of India Undertaking) Fad PEM — POWER PROJECT ENGINEERING INSTITUTE Ref no.: PW/PE/PG/MAL/P-1584/10 Date: 10.02.2011 C. Terms of payment: ighty (80%) percent payment on pro-rata basis for the work completed as per approved billing schedule shall be released as progressive payment, by the site authorities, on submission of protocols duly signed by BHEL site office(s/Owner. ‘Ten percent (10%) of the total value shall be released by the site authorities, on successful commissioning of the complete system/package. Balance ten percent (10%) of the total value shall be released by the site authorities, on successful completion of the PG/ Demonstration test(s) & handing over of the system/package to the BHEL. * All Payments shall be made within 90 days of receipt of invoices complete in every respect. No interest shall be payable for delayed period. In case of MSED registered vendor payment shall be made within 45 days of receipt of invoices complete in every respect. © Bidders to submit the dispatch documents direct to BHEL and not through Bank. D. Price variation: Not applicable, E, Liquidated damages: As per clause no: 13.0 of GCC Rev 04, Vol -I, Pat—B. F. Bank Guarantees: As per clause no: 7.0 of GCC Rev 04, Vol ~ I, Part-B G. Guarantee: As per clause no: 14.2(b) of GCC Rev 04, Vol —I, Part-B H. Insurance: Insurance shall be in BHEL scope. Vendor to intimate insurance company before dispatch. All other terms and conditions shall be as per GCC, Issue 00, Rev 04 and SCC Rev 02. 4. Detailed P.O. will be issued by BHEL, PS-SR. Please return one copy of this LOI duly signed and stamped as a token of acceptance of the order within 7 days. 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