TNTIT Rules

FINANCE [Salaries] DEPARTMENT
BLANK PAGE
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TAMIL NADU TRANSPARENCY IN TENDERS
RULES, 2000.1
In exercise of the powers conferred by sub-section (1) of section
22 of the Tamil Nadu Transparency in Tenders Act, 1998 (Tamil
Nadu Act 43 of 1998), the Governor of Tamil Nadu hereby makes
the following rules, namely.-
CHAPTER-I.
PRELIMINARY.
1. Short title and commencement.-
(a)These rules may be called the Tamil Nadu Transparency in Tenders Rules, 2000.
(b) They shall come into force on the date 1st October, 2000.
2
[(c) These rules shall apply to all types of procurement
except the procurement of Projects under the Public Private
Partnerships.]
2. Definitions.- In these rules, unless there is

anything repugnant in the subject or context,-
(a) “Act” means the Tamil Nadu Transparency inTenders Act, 1998 (Tamil Nadu Act 43 of
1998);
(b) “Supply and Installation Contract” means acontract under which the tenderer is
required to supply, erect, test and commission the equipment at the place specified by the
Procuring Entity;
1 Published in Part-III – Section 1(a) of Tamil Nadu Government Gazette, Extraordinary

No.700, Dated 1st October 2000. [(No.SRO.A-81 (c) / 2000 - G.O.Ms.No.446 /
26th September, 2000].
2 Added. (c). [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012].
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TAMIL NADU TRANSPARENCY IN TENDERS RULES, 2000.
(c) “Fixed Rate Contract ” means a contract where a

set of rates and terms and conditions are fixed for the supply of
unit quantities of goods or certain standardized services;
(d) “ Pre-qualification” means the process by which

the tenderers are first screened for their capability and
resources to implement the contract before they are permitted to
offer their tenders;
(e) “Two-cover System ” means a procedure under

which the tenderers are required to simultaneously submit two
separate sealed covers, one containing the Earnest Money
Deposit and the details of their capability to undertake the
tender which will be opened first and the second cover
containing the 3 [financial] quotation which will be opened only
if the tenderer is found qualified to execute the tender;
(f) “Earnest Money Deposit (EMD) ” means the

amount required to be remitted by a tenderer along with his
tender indicating his willingness to implement the contract;
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[(g) “Lump-sum Contract ” means a contract under
which a tenderer is engaged to carry out a work or effect supply
as specified within a given period and for a fixed total price and
the tenderer is paid depending on the completion of work or
supply to specification and adherence to the time schedule:
Provided that where appropriate, unit rates or prices for each of

the various items comprising such work or supply may also be
specified to facilitate interim payments depending on the actual
quantities of work executed or supplies effected.
3Substituted. [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012].
4
Substituted. [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012].
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(h) “Multi-Stage Tender” means a tender in which

there are atleast two stages including an initial stage of
short-listing based on the fulfillment of eligibility criteria based
on experience and financial or technical parameters or both and
a final stage in which only the qualified, short-listed tenderers
are invited to submit their financial bids;
(i) “ Piece-Work Contract” means a contract under

which only unit rates or prices for various kinds of work or
materials are agreed upon for a given period of time without
reference to the total quantity of work to be done or the material
to be supplied and the time period within which the
work or supply is to be completed;
(j) “ Turn-key Contract ” is a contract under which the

tenderer is required to undertake within the framework specified
by the Procuring Entity the entire responsibility for detailed
investigation, planning, design, construction and
commissioning of the total project.]
***
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CHAPTER-II.
GENERAL.
Categories of Procurement.-(1) For the purposes of the application
of these rules, procurement is categorized as follows, namely:-
(i) Construction; and
(ii) Supply of goods and services.
(2) While the provisions of these rules shall apply in general to

each of the categories of procurement in sub-rule (1), where
a specific provision has been made in the rules regarding any
specific category, that specific provision shall prevail as against
any general provision in so far as that category of procurement
is concerned.
4. Methods of Tendering.- (1)

Procurement of different categories shall be effected by the
following methods of tendering, namely:-
(i) Piece-work Contract

(ii) Lump-sum Contract
(iii) Turn-key Contract
(iv) Multi-stage contracting including pre-qualification
and two cover system; and
(v) Fixed Rate Contract
(2) The Tender Inviting Authority shall decide the method of

tendering to be followed in each case having regard to the
category, size and complexity of the procurement.
(3) While the provisions of these rules shall apply to each of the
methods of procurement indicated in sub-rule (1) generally
where a specific provision has been made in these rules
regarding a particular method of tendering, such specific
provision shall prevail as against any general provision in so
far as that particular method of tendering is concerned.
***
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CHAPTER-III.
PUBLICITY.
5. Publication of
Tender Bulletin.- (1) The District
Tender Bulletin shall be published by the District Tender
Bulletin Officer at least once in every week.
(2) The State Tender Bulletin shall be published by the

State Tender Bulletin Officer at least once in every week.
(3) The Tender Bulletin Officer shall cause to be published all

Notices Inviting Tenders and intimations of acceptance of
tenders received upto twenty four hours prior to the actual
publication of the bulletin.
(4) In case a Notice Inviting Tender or information relating to

acceptance of the tender needs to be published urgently, then
the Secretary to Government of the concerned administrative
department in the case of the State Tender Bulletin or the
District Collector in the case of the District Tender Bulletin can
for reasons to be recorded in writing, direct the respective
Tender Bulletin Officers to publish an extraordinary issue of the
Tender Bulletin.
6. Distribution of
Tender Bulletins.- (1) The Tender
Bulletin Officer shall make the Tender Bulletin available at any
office of a Government Department, Local Authority, Statutory
Board, Public Sector Undertaking, Local Body, University or
Co-operative Institution.
(2) The Tender Bulletin Officer shall make available adequate

copies of the tender bulletin at the office of the Tender Inviting
Authority whose Notice Inviting Tenders and intimation of
tender acceptance finds place in the bulletin.
(3) Any person or institution can be enrolled as a regular

subscriber to the tender bulletin on payment of a fixed fee
annually, half-yearly or quarterly, as the case may be.
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7. Tender Bulletin to
contain information only.-
(1) The tender bulletin shall contain only information of the
Notice Inviting Tenders and the orders accepting a tender and
does not in itself create a legal right or liability.
(2) A Notice Inviting Tender will not be invalidated merely on the

grounds that the notice although published in newspapers has
not been published in one or the other of the District Tender
Bulletins or State Tender Bulletins or when published in the
State Tender Bulletin could not be published in a District Tender
Bulletin or vice versa.
8. Information to be published in the District

Tender Bulletin.- Subject to the provisions of rule 10, Notices
Inviting Tenders and decisions on tenders in all cases where the
value of the procurement exceeds rupees 5 [ten lakhs and is]
below rupees twenty five lakhs shall be published in the District
Tender Bulletin of the district where the headquarters of the
Tender Inviting Authority is located and in the district where the
work is to be executed or the goods and services supplied.
9. Information to be published in the State Tender

Bulletin.- The Notice Inviting Tenders and decisions on
tenders shall be published in the State Tender Bulletin in cases
where.-
(a) The value of procurement exceeds rupees twenty five lakhs;
(b) The Tender Inviting Authority is a Secretary to Government,

or a head of a Government department, or Local Authority or
the Chief Executive of a Public Sector
Undertaking, Statutory Board, Apex Cooperative Institution,
University or State Level Society formed by the Government.
(c) In any other case, where the Tender Inviting Authority

deems it fit.
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10. Details to be mentioned in Notice Inviting

Tenders.- The Notice Inviting Tenders shall contain the
following details, namely:-
(a) The name and address of the Procuring Entity and

the designation and address of the Tender Inviting Authority;
(b) Name of the scheme, project or programme for which the
procurement is to be effected;
(c) The date upto which and places from where the tender
documents can be obtained;
(d) The amount of Earnest Money Deposit (EMD) payable;
(e) The last date and time for receipt of tenders;
(f) The date, time and place for opening of tenders received; and
(g) Any other information the Tender Inviting Authority
considers relevant.
11. Publication of Notice Inviting Tenders in

Newspapers.- (1) The Tender Inviting Authority shall have the
Notice Inviting Tenders published in the Indian Trade Journal in
all cases where the value of procurement exceeds rupees
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[fifty crores].
(2) The number, editions and language of the

newspapers in which the Notice Inviting Tenders shall be
published will be based on the value of procurement.
(3) In cases where publication of Tender Inviting Notice is to be

done only in Newspapers with circulation within the District, the
Information and Public Relations Officer attached to the District
Collectorate shall be the competent authority to release the
advertisement and in all other cases the competent authority to
release the advertisement shall be the Director of Information
and Public Relations, Chennai.
6Substituted . [TNGGE No.212 / 18-08-2009 (No.SRO A-22(a)/2009) - G.O.Ms.No.392 /18th August, 2009]
.
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(4) The Notice Inviting Tender shall be given due publicity in

Newspapers and also on notice boards in the District Offices. For
tenders above rupees fifty lakhs, Director of Information and
Public Relations will publish the Notice Inviting Tenders as per
instructions of the 7 [Procuring Entity]. For other tenders,
Director of Information and Public Relations will publish keeping
in mind the request of the department. There should not be any
additional insertion and no publication of Notice Inviting Tenders
in newspapers not requested by the 7 [Procuring Entity] for
tenders above rupees fifty lakhs.
12. Sending Notice Inviting Tenders to all possible

tenderers.- The Tender Inviting Authority may if considers
necessary, send the Notice Inviting Tenders to all possible
tenderers including registered contractor, past supplier, any
potential supplier and any other well known company or firm
directly.
***
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CHAPTER IV.
NOTICE INVITING TENDERS AND TENDER
DOCUMENTS.
13. Technical specifications contained in the
Tender Documents.- (1) The technical specifications
contained in the tender documents shall include a detailed
description of what is proposed to be procured.
(2) Unbiased technical specifications shall be prepared by

observing the following safeguards, namely:-
(a) use of brand names and catalogue numbers shall be avoided

and where it becomes unavoidable, along with the brand name
the expression “or equivalent” shall be added;
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[Provided that such specifications should as far as
practicable specify the output or service levels to be delivered.]
(b) wherever possible the appropriate Indian Standards

with the number shall be incorporated;
(c) in the case of construction tenders, detailed estimates

shall be prepared by the competent technical authorities based
on the schedule of rates and standard data as revised from time
to time.
Provided that for large and prestigious projects, the Government

shall permit any Procuring Entity to engage a qualified private
architect or consultant to prepare the design and estimates; and
(d) in case alternative designs or materials are permitted, the

conditions for their acceptability and the method of their
evaluation shall be clearly stated.
8Added. [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012].
11
14. Commercial Conditions.- (1) The tender

documents shall require all tenderers without exception to pay
an Earnest Money Deposit (EMD) ordinarily not exceeding one
per cent of the value of the procurement by means of a demand
draft, bankers cheque, specified small savings instruments or
where the Procuring Entity deems fit, irrevocable bank
guarantee in a prescribed form. The tender documents shall
clearly state that any tender submitted without the Earnest
Money Deposit (EMD) in the approved form be summarily
rejected
Provided that any category of tenderers specifically exempted by

the Government from the payment of Earnest Money Deposit
(EMD) will not be required to make such a deposit.
(2) The tender documents shall specify the period for which the
tenderer should hold the 9 [financial bids] offered in the tender
valid:
10
[Provided that the initial period of validity shall
ordinarily be ninety days.]
(3) The tender documents shall require that as a guarantee of

the tenderer’s performance of the contract, a security deposit be
taken from the successful tenderer subject to the conditions
that.-
(a) the amount of the deposit not exceeding five per cent of the
value of the orders placed: and
(b) the deposit being in the form of demand draft or bankers’

cheque or specified small savings instruments or where the
Procuring Entity deems fit, irrevocable bank guarantee in a
prescribed form.
10Substituted [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012].
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(4) The tender documents shall clearly indicate the payment

terms conforming to the following requirements.-
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[(a) Payment shall ordinarily be effected only on
completion of delivery against the orders placed:
Provided that payment of advance may be made in the following

cases for sufficient reasons to be recorded by the Procuring
Entity:-
(i) in cases where goods, commodities and services are procured

through imports requiring opening of Letter of Credit;
(ii) in cases where there is single source of supply only and

where the practice of paying advance is already in vogue as a
standard practice;
(iii) in cases of purchase during natural calamities and

emergencies declared by the Government under clause (a) of
section 16 of the Act;
(iv) in cases of purchase of life saving drugs; and
(v) in cases where the standard commercial terms of supply

require payment of advance by the Procuring Entity, such as the
machinery and equipment manufacturers for sugar and
cement plants.]
(b) Mobilization advances may be paid in the case of

construction or supply and installation contracts of a large and
complex nature, for a value exceeding rupees one crore:
11Substituted. [TNGG No.14 / 14-04-2004 (No.SRO A-12/2004) - G.O.Ms.No.107 / 23rd March, 2004]
.
13
Provided that such mobilization advances shall not ordinarily

exceed ten per cent of the value of the contract, shall be secured
against irrevocable bank guarantee and shall be recovered in the
subsequent bills payable along with interest as per specific
terms set in the tender documents provided that in case of
mobilisation advances for plant machinery and equipment, they
are also hypothecated to the Governor of Tamil Nadu in addition
to other requirements;
(c) Percentage of payment to be withheld for the effective

performance of the contract.
Provided that withheld amounts do not exceed ten per cent of

the total value of contract;
(d) Payment terms for imports shall be based on standard terms

of international trade and the payment may be effected through
irrevocable Letters of Credit drawn on banks;
(5) The tender documents shall clearly indicate whether any

variations in the commercial terms prescribed in the
documents will be permitted and if so to what extent such
variations would be considered.
(6) The tender documents and the contract shall include a

clause for payment of liquidated damages and penalty
payable by the tenderer in the event of non-fulfillment of any or
whole of the contract.
(7) The tender documents shall clearly indicate the terms on

which the tenderers will be required to quote their
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[financial bid] which should be inclusive of all costs of
delivery at the final destination such as transportation, payment
of duties and taxes leviable, insurance and any incidental
services and giving the break up thereof.
14
13
(7-A) 14
[…]
(8) The tender documents shall include a price adjustment
clause to reflect any changes either upward or downward in
major cost components such as labour, equipment, material
and fuel, based on a prescribed formula in the case of large
contracts where the period of execution is likely to exceed
eighteen months.
(9) The tender documents shall indicate the quantity proposed

to be procured in the tender, and the Tender Accepting
Authority shall be ordinarily permitted to vary the quantity
finally ordered only to the extent of twenty five percent either
way of the requirement indicated in the tender documents.
15. Tender documents to clearly specify evaluation

criteria.- (1) The tender documents shall clearly indicate the
criteria 15 [including financial bid] which are to be adopted for
evaluating the tenders and how such criteria will be
quantified or evaluated; and
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[(2) The qualification criteria in terms of the
registration of contractors in the cases where the Procuring
Entity has a system of registration of contractors, the required
experience, available manufacturing and construction capacity,
technical and other manpower and financial status shall be
clearly stated in the tender documents.]
1 Inserted. [TNGG No.44 / 21-11-2001 (No.SRO A-72(m-a)/2001) - G.O.Ms.No.452 / 16th November, 2001].
3 (w.e.f. 1-12-2001)
1 Omitted. [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012].

4
1 Substituted. [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012].
5
1 Substituted. [TNGGE No.127 / 22-05-2001 (No.SRO A-19(c))/2007) - G.O.Ms.No.177 / 22nd May, 2007].
15
16. Supply of Tender Documents.- (1)

The Tender
Inviting Authority shall make available the tender documents
17
[from the date of publication of the Notice Inviting Tenders].
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[(2) The Tender Inviting Authority shall ensure that
the tender documents are made available to any person who is
willing to remit the cost of such documents.]
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[(3) (a) The tender documents shall be made available
at:-
(i) the office of the Tender Inviting Authority;
(ii) any other office or place indicated by the
Procuring Entity.
20
[(b) In respect of procurement where the estimated
value of procurement is Rupees Twenty Five Lakhs and above in
value for construction and Rupees Ten Lakhs and above in value
for other categories of procurement inclusive of consultancies
for construction, the tender document shall be made available
for downloading free of cost at the website designated for this
purpose by the Government. Tender documents may also be
made available free of cost at such other websites as may be
indicated by the Tender Inviting Authority.]]
(4) The Tender Inviting Authority shall send by registered post

or courier the tender documents to any prospective tenderer
who makes a request for the documents on payment of cost
along with postal charges at the risk and responsibility of the
prospective tenderer.

7
1
Substituted. [TNGGE No.127 / 22-05-2001 (No.SRO A-19(c))/2007) - G.O.Ms.No.177 / 22nd May, 2007].
1 Substituted. [TNGGE No.127 / 22-05-2001 (No.SRO A-19(c))/2007) - G.O.Ms.No.177 / 22nd May, 2007].
9
2
Substituted. [TNGGE No.127 / 22-05-2001 (No.SRO A-19(c))/2007) - G.O.Ms.No.177 / 22nd May, 2007].
16
17. Clarification to
Tender Documents.- 21 [(1) At any
time after the issue of the tender documents and before the
opening of the tender, the Tender Inviting Authority may make
any changes, modifications or amendments to the tender
documents and shall send intimation of such change to all those
who have purchased the original tender documents and upload
corrigendum for the information of those who have downloaded
the tender documents from the website.]
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[(2) In case any tenderer asks for a clarification on
the tender documents before 48 hours of the opening of the
tender, the Tender Inviting Authority shall ensure that a reply is
sent and copies of the reply to the clarification sought shall be
communicated to all those who have purchased the tender
documents without identifying the source of the query and
upload such clarification to the designated website for the
information of those who have downloaded the tender
documents from the website, without identifying the source of
the query.]
***
21 Substituted. [TNGGE No.272A / 30-09-2007 (No.SRO A-44(a-1)/2007) - G.O.Ms.No.471 / 30th Sept., 2007].
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CHAPTER-V.
RECEIPT OF TENDERS AND TENDER
OPENING.
18. Place and
time for receipt of tenders.- 23[(1) The
Tender Inviting Authority shall ensure that adequate
arrangements are made for the proper receipt and safe
custody of the tenders at the place indicated for the receipt of
tenders. Such of the tenders that are received through
electronic mail shall be kept electronically locked.]
(2) The Tender Inviting Authority shall take all measures to

ensure that no intending tenderer is hindered in submitting his
tender.
24
[(3) The Tender Inviting Authority shall permit the
submission of tenders by post or courier or by electronic
submission through the designated website, wherever
applicable.
Provided that the Tender Inviting Authority shall not be

responsible for any delay in transit in such cases.]
(4) The Tender Inviting Authority shall not accept any tenders
submitted by facsimile (fax) 25 [...].
(5) The Tender Inviting Authority may extend the last date and
time for receiving tenders 26 [which shall be published on the
designated website also] after giving adequate notice to all
intending tenderers in cases where: -
(a) the publication of the tender notice has been delayed;

2
Substituted. [TNGGE No.272A / 30-09-2007 (No.SRO A-44(a-1)/2007) - G.O.Ms.No.471 / 30th Sept., 2007].
2 Omitted. [TNGGE No.272A / 30-09-2007 (No.SRO A-44(a-1)/2007) - G.O.Ms.No.471 / 30th Sept., 2007].
2 Inserted. [TNGGE No.272A / 30-09-2007 (No.SRO A-44(a-1)/2007) - G.O.Ms.No.471 / 30th Sept., 2007].
18
(b) the communication of changes, in the tender documents to

the prospective tenderers under sub-rule (1) of rule 17 took
time;
(c) any of the tenderers requested clarifications, the

communication of which took time to all the tenderers; and
(d) any other reasonable grounds exist, for such extension

which shall be recorded in writing by the Tender Inviting
Authority.
27
[(e) in the case of tenders not submitted
electronically, the tenderer shall ensure that all the pages are
serially numbered and the submitted tender documents are
properly stitched and bound.]
19. Marking of covers in which the tender is

submitted.- The tenderer shall be responsible for properly
superscribing and sealing the cover in which the tender is
submitted and the Tender Inviting Authority shall not be
responsible for accidental opening of the covers that are not
properly superscripted and sealed as required in the tender
documents before the time appointed for tender opening.
20.
Minimum time for submission of tenders.- (1)
The Tender Inviting Authority shall ensure that adequate time is
provided for the submission of tenders and a minimum time is
allowed between date of publication of the Notice Inviting
Tenders in the relevant Tender Bulletin or in the newspapers
whichever is later and the last date for submission of tenders.
This minimum period shall be as follows.-
(a) for tenders upto rupees two crores in value, fifteen days; and
27 Added. [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012].
19
(b) for tenders in excess of rupees two crores in value, thirty

days.
(2) Any reduction in the time stipulated as per sub-rule (1) has to
be specifically authorized by an authority superior to the Tender
Inviting Authority for reasons to be recorded in writing.
28
[ 20-A. Withdrawal of Tenders Before Opening:- (1)
No tenderer shall be allowed to withdraw the tenders after
submitting the tender.
(2) A Tenderer may submit a modified tender before the last date
for receipt of tender:
Provided that where more than one tender is submitted by the

same tenderer, the lowest eligible financial tender shall be
considered for evaluation.]
21. Opening of Tenders.- (1) All the tenders received

by the 29 [Tender Inviting Authority] shall be 30 [opened at the
time and venue] specified in the Notice Inviting Tenders and in
cases where an extension of time for the submission of tenders
has been given subsequent to the original Notice Inviting
Tenders in accordance with sub-rule (5) of rule 18 at
31
the time so specified subsequently. [The e-submitted
tenders may be permitted to be opened by a Tender Inviting
Authority or a member of the Tender Scrutiny Committee from
their new location if they are transferred after the issue of Notice
Inviting Tender and before tender opening and where the new
incumbent is yet to obtain his digital signature certified.]
8
2
Substituted. [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012].
0
3
Added. [TNGGE No.272A / 30-09-2007 (No.SRO A-44(a-1)/2007) - G.O.Ms.No.471 / 30th September, 2007].
20
(2) The time specified for the opening of tenders shall

be immediately after the closing time specified for the receipt of
tenders allowing a reasonable period, not exceeding one hour,
for the transportation of the tenders received to the place they
are to be opened in the presence of the tenderers who choose to
be present.
(3) The tenders will be opened in the presence of the tenderers or

one representative of the tenderer who chooses to be present.
22. Procedure to be followed at tender opening.- The

following procedure shall be followed at the tender opening.-
32
[(a) All the envelopes containing tenders and the
tenders received through the electronic mail in the designated
website shall be counted.]
(b) All the tenders received in time shall be opened.

33
[(c) Any tender received subsequently shall not be
opened and shall be returned unopened to the tenderer and in
the case of tenders submitted through electronic mail in the
designated website, a report on the late submission of tenders
shall be generated and the same shall be sent to the tenderers
concerned.];
(d) On opening of the tender, the members of the Tender

Scrutiny Committee shall initial the main bid including the
prices and any corrections;
(e) A record of the corrections noticed at the time of the bid

opening shall be maintained;
21
(f) The name of the tenderers and the quoted prices should be
read out aloud.
(g) the fact whether earnest money deposit has been submitted
and other documents required produced may be indicated, but
this shall be merely an examination of the documents and not
an evaluation;
(h) Minutes of the tender opening shall be recorded.34 […]

35
[(i) The signatures of all the tenderers present shall
be obtained and if any of the tenderers or his representative
refuses to sign the minutes, the same shall be recorded.]
23. Changes and alterations not to be permitted

after tender opening.- No changes, amendments which
materially alter the tendered prices shall be permitted after the
opening of the tender, except as per the procedure prescribed
in sub-section (3) of section 10 of the Act.
24. Tender Scrutiny

Committee.- (1) A Tender
Scrutiny Committee may be constituted to scrutinize the
tender documents, supervise opening of tenders, to carry out
the preliminary examination and detailed evaluation of the
tenders received and to prepare an evaluation report for the
consideration of the Tender Accepting Authority.
(2) The constitution of a Tender Scrutiny Committee will be

obligatory in all cases where the value of the procurement
exceeds limit as may be specified.
***
3 Omitted. [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012].
4
3
Added. [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012].
22
CHAPTER-VI.
TENDER EVALUATION.
25. Tender evaluation to be in accordance with

evaluation criteria.- The Tender Accepting Authority shall
cause the evaluation of tenders to be carried out strictly in
accordance with the evaluation criteria indicated in the tender
documents.
26. Time taken for evaluation and extension of

tender validity.- (1) The evaluation of tenders and award of
contract shall be completed, as far as may be practicable, within
the period for which the tenders are held valid.
(2) The Tender Accepting Authority 36 [may] seek extension of

the validity of tenders for the completion of evaluation.
37
[Provided that sum total of all extensions shall
ordinarily not exceed 180 (one hundred and eighty) days.]
(3) In case the evaluation of tenders and award of contract is not

completed within extended validity period, all the tenders shall
be deemed to have become invalid and fresh tenders may be
called for.
27. Process of tender evaluation to be confidential

until the award of the contract is notified.- (1) Subject to
the provision of 38 [sections 13 and 14 of the Act], the Tender
Inviting Authority shall ensure the confidentiality of the
process of tender evaluation until orders on the tenders are
passed.
6
7
8
23
(2) The Tender Accepting Authority shall cause the information

on orders passed on the tenders published in the Tender
Bulletin.
(3) Tenderers shall not make attempts to establish

unsolicited and unauthorised contact with the Tender
Accepting Authority, Tender Inviting Authority or Tender
Scrutiny Committee after the opening of the Tender and prior to
the notification of the Award and any attempt by any tenderer to
bring to bear extraneous pressures on the Tender Accepting
Authority shall be sufficient reason to disqualify the tenderer.
(4) Notwithstanding anything contained in sub-rule (3), the

Tender Inviting Authority or the Tender Accepting Authority
may seek bonafide clarifications from tenderers relating to the
tenders submitted by them during the evaluation of tenders.
28. Initial examination to determine substantial

responsiveness.- (1) The Tender Inviting Authority shall
cause an initial examination of the tenders submitted to be
carried out in order to determine their substantial
responsiveness.
(2) The initial examination shall consider the following factors,

namely:-
(a) Whether the tenderer meets the eligibility criteria laid down
in the tender documents;
39
[(b)(i) whether the crucial documents have been duly
signed;
(ii) whether the documents have been authenticated by digital

signature, in the case of tenders submitted through electronic
mail in the designated website.]
(c) Whether the requisite Earnest Money Deposit (EMD) has

been furnished;
39Substituted. [TNGGE No.272A / 30-09-2007 (No.SRO A-44(a-1)/2007) - G.O.Ms.No.471 / 30th Sept., 2007]
.
24
(d) Whether the tender is substantially responsive to

the technical specifications, commercial conditions set out in
the bidding documents including the testing of samples where
required.
(3) Tenders which on initial examination are found not to be

substantially responsive under any of the clauses under
sub-rule (2) may be rejected by the Tender Accepting Authority.
29.
Determination of the lowest evaluated price.-
(1) Out of the tenders found to be substantially responsive after
the initial examination, the tenderers who has bid the lowest
evaluated price in accordance with the evaluation criteria or
the tenderers scoring the highest on the evaluation criteria
specified as the case may be shall be determined.
(2) In determining the lowest evaluated price, the following

factors shall be considered, namely:-
(a) the quoted price shall be corrected for arithmetical errors;
(b) in cases of discrepancy between the prices quoted in

words and in figures, lower of the two shall be considered;
(c) adjustments to the price quoted shall be made for deviations

in the commercial conditions such as the delivery schedules and
minor variations in the payment terms which are quantifiable
but deemed to be non-material in the context of the particular
tender;
40
[(d) the evaluation shall include all central duties
such as customs duty and central excise duty and sales tax as a
part of the price, as detailed below: -
(i) in evaluation of the price of an imported item, the price has to

be determined inclusive of the customs duty;
40Substituted. [TNGGE No.281 / 09-10-2003 (No.SRO A-42(e)/2003) - G.O.Ms.No.412 / 09th October, 2003]
.
25
(ii) in evaluation of the price of articles which are subject to

excise duty, the price has to be determined inclusive of such
excise duty;
(iii) in a tender where all the tenderers are from within the State
of Tamil Nadu, or where all the tenderers are from outside the
State of Tamil Nadu, the 41 [Value Added Tax] shall be included
for the evaluation of the price; and
(iv) In a tender where the tenderers are both from the State of
Tamil Nadu as well as from outside the State of Tamil Nadu, 42
[the Value Added Tax levied under Tamil Nadu Value Added Tax
Act, 2006 (Tamil Nadu Act 32 of 2006)] shall be excluded for the
evaluation of the price.]
(e) in the case of purchase of equipment, the operation and

maintenance and spare part costs for
appropriate periods as may be specified in bid documents
may be quantified, where practicable and considered.
43
(f) 44
[...]
(3) In order to secure the best possible procurement price,
negotiations with tenderer determined as per
45
[sub-rules (1) and (2) of this rule] are permissible subject to
provisions in section 10 of the Act.
46
[(4) In the event that two or more tenderers have
made the same financial bid and the splitting of the tender is not
possible in accordance with sub-section (5) of section 10 of the
Act, the Tender Accepting Authority shall identify the lowest
tenderer by adopting one of the following approaches, which
shall be pre-specified in the Tender Documents:
4
Substituted.[TNGG No.44 / 21-11-2001 (No.SRO A-72 (m-a)/2001) - G.O.Ms.No.452 / 16th November, 2001].
(w.e.f. 1-12-2001).
4 Added. [TNGG No.44 / 21-11-2001 (No.SRO A-72(m-a)/2001) - G.O.Ms.No.452 / 16th November, 2001].
3 (w.e.f. 1-12-2001)
4
Omitted. [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012].
4
Added. [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012].
26
(a) In case of multi-stage tenders, by taking into account the

qualification score of each tenderer from the first stage and the
tenderer with higher score shall be adjudged the Lowest
Tenderer; or
(b) By asking the two tenderers to provide their best and final
offer of the financial bid in a sealed cover and the tenderer
offering the most advantageous financial bid shall be adjudged
the Lowest Tenderer.
(c) In case, a tie still persists after the procedure contained in

clause (a) or (b) of this sub-rule has been followed, the
selected tenderer shall be identified by draw of lots, which shall
be conducted, with prior notice, in the presence of the tied
tenderers or their representatives who choose to be present.]
47
[ 29-A. Treatment of Speculative Tenders.- (1) The
Tender Accepting Authority may reject a tender, if it has
determined that the financial bid in combination with other
constituent elements of the tender is abnormally low or
abnormally high in relation to the subject matter of the
procurement and raises concerns with such authority as to the
ability of the tenderer to perform the contract.
(2) Before arriving at a determination under sub-rule

(1), the Tender Accepting Authority may in writing seek such
other information from the tenderers as it considers relevant.
(3) The decision of the Tender Accepting Authority to reject a

submission in accordance with this rule and the reasons for that
decision, and all communications with the tenderer under this
rule shall be included in the record of the Tender Proceedings.
(4) The decision of the Tender Accepting Authority and the

reasons therefor shall be promptly communicated to the
tenderer concerned.]
47Added. [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012]..
27
30. Preparation of Evaluation Report and Award of

Tenders.- (1) The Tender Scrutiny Committee or the officer
evaluating the tender shall prepare detailed evaluation report
which shall be considered by the Tender Accepting Authority
before taking a final decision on the tender.
(2) The evaluation report shall be prepared in the standardized

format as may be prescribed.
(3) As soon as the tenderer qualified to perform the contract is

identified, in accordance with section 10(6) of the Act, the
Tender Accepting Authority shall pass orders accepting the
tender and communicate the order of acceptance to the
successful tenderer. The Tender Accepting Authority will also
send to the Tender Bulletin Officer a statement of evaluation
of the tenders with a comparative statement of tenders
received and decision thereon for publication in the Tender
Bulletin.
(4) Within such reasonable time as may be indicated in the

tender documents, the tenderer whose tender has been accepted
will be required to execute the contract agreement in the
prescribed format.
(5) In case the successful tenderer fails to execute necessary

agreements as prescribed within the period specified, then his
Earnest Money Deposit (EMD) shall be forfeited and his tender
held as non-responsive.
***
28
CHAPTER-VII.
EVALUATION AND AWARD OF TENDERS IN
SPECIAL CASES.
31. Procurement in
Special Cases.- In the case of
purchase of goods where the quantity offered at the lowest price
is less than the total quantity required, the Tender Accepting
Authority may, after placing orders with the lowest evaluated
tenderer for the entire quantity offered by such
tenderer subject to his ability to supply, adopt either or both
of the following procedures to procure the balance quantity.-
(1) Negotiate with the next lowest tenderers in strict ascending

order of evaluated price and require them to match the price
offered by the lowest evaluated tenderer and place orders until
the entire quantity required is ordered; or
(2) Require all the other eligible tenderers who participated in
the tender and offered a price higher than that offered by the
lowest evaluated tenderer, to submit sealed offers of the quantity
they would be willing to supply at the price quoted by the lowest
evaluated tenderer, and thereafter place orders for the
remaining required quantity with all those who match the lowest
evaluated price such that those who bid lower prices in the
original tender get a higher priority for supply.
(3) In case the bidders other than the lowest evaluated bidder fail
to agree to accept the lowest price or the total quantity offered by
them at the price quoted by the tenderer with lowest evaluated
price is less than the required quantity the Tender Accepting
Authority may place orders for remaining required quantity at
different rates with different suppliers in the ascending order of
evaluated price until the entire quantity required is covered:
Provided that, where different quantities have to be procured at
more than one price from one or more tenderers, the Tender
Accepting Authority may decide not to procure beyond a price
considered economical although the entire quantity originally
stated to be required in the tender documents is not ordered.
29
(4) In cases where, the Tender Accepting Authority

such as Tamil Nadu Electricity Board, Tamil Nadu Civil Supplies
Corporation, Project Director, Integrated Child
48
Development Scheme (ICDS) [and Tamil Nadu State
Transport Corporations] is of the view that the commodity to be
purchased is so vital in nature and the failure in supply would
affect the public interest and that it is necessary to have more
than one supplier, the Authority may place orders on the
tenderer quoting the lowest evaluated price for not less than
60% of the quantity covered in the tender at the price quoted by
him and place orders for the remaining quantity on the
tenderers quoting the next lowest evaluated prices at the lowest
evaluated price and shall specify this in the tender documents.
49
[Provided that the commodity to be purchased by the
Tamil Nadu State Transport Corporations shall be restricted to
bus chassis only].
50
[ 31-A. Fixed Rate Contract.- (1) In cases where the
prices offered by the Lowest Tenderer are in the opinion of the
Tender Accepting Authority higher than the schedule of rates or
the prevailing market price and the quantity of goods or services
to be procured are of such volume or are required to be delivered
at different locations or at different points in time such that it is
not practical for the entire supply to be effected by only one or a
few suppliers, such authority may for reasons to be recorded in
writing and after obtaining the prior approval of Government,
follow the fixed rate contract procedure.
4 Inserted. [TNGGE No.183 / 23-03-2002 (No.SRO A-17(b)/2002) - G.O.Ms.No.107 / 23rd March, 2002].
8
4
Added. [TNGG No.40 / 09-10-2007 (No.SRO A-52/2002) - G.O.Ms.No.286 / 13th August, 2002].
50Inserted. [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012].
30
(2) The rates for the supply of the goods or services will
be determined through a process which shall include the
following steps:-:
(a) Open tenders shall be or shall have been called from all
eligible tenderers and the rates quoted shall be taken into
consideration;
(b) The rates quoted by the eligible Lowest Tenderer in the open
tender shall be compared with the prevailing market rate and
the rates of the previous period and if the Tender Accepting
Authority is of the view that the quoted rates are too high, the
Authority may negotiate with the Lowest Tenderer to ascertain
whether further reduction in rates is possible;
(c) If after negotiations, the Tender Accepting Authority is of the

view that the rates are still too high with reference to rates of the
previous period or prevailing market rates, the Tender Accepting
Authority may after considering relevant factors, determine and
notify an appropriate rate, as the fixed rate.
(d) All eligible suppliers who accept the fixed rate shall
be enlisted by the Procuring Entity for delivery of services.
(e) Where the Procuring Entity deems fit, it may issue an

advertisement indicating the rates fixed and call for
enrollment of more suppliers at these rates subject to such
suppliers fulfilling the eligibility criteria.
(f) Orders for supply of goods or services from the enlisted

suppliers shall be placed on the basis of transparent criteria to
be indicated in the tender documents or
advertisement as the case may be, and shall inter alia, include
the capacity to supply, past performance of the suppliers where
applicable, and giving due priority to the supplier or suppliers
who participated in the initial tender and offered the lowest
rate.]
31
32. 51[Pre-qualification Procedure in a single stage,

two cover system ].- (1) The Tender Inviting Authority shall
for reasons to be recorded in writing provide for
pre-qualification of tenderers on the basis of,-
(a) experience and past performance in the execution of similar

contracts;
(b) capabilities of the tenderer with respect to personnel,

equipment and construction or manufacturing facilities;
(c) financial status and capacity
(2) Only the bids of pre-qualified bidders shall be considered

for evaluation.
52
[ 32-A. Pre-qualification with Multi-stage
Tendering.- (1) A Procuring Entity may invoke the multi-stage
tendering process in cases where:
(a) The Procuring Entity assesses that discussions with

tenderers are needed to refine aspects of the description of the
subject matter of the procurement and to formulate them with
precision in order to allow the Procuring Entity to obtain the
most satisfactory solution to its procurement needs; or
(b) the successful tenderer is expected to carry out a detailed

survey or investigation and undertake a comprehensive
assessment of risks, costs and obligations associated with the
particular procurement; and
(c) in any other case for reasons to be recorded in writing.
5 Substituted.[TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December,

1 2012].
5
Inserted. [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012].
32
(2) Where the Procuring Entity invokes the multi-stage tendering

process, the Tender Inviting Authority shall call for initial
submissions containing their applications or proposals without
a financial bid, containing the following items, namely:-
(a) proposals relating to the technical, quality or performance
characteristics of the subject matter of the procurement;
(b) contractual terms and conditions of supply:
(c) where relevant, the professional and technical

competence, experience and qualifications of the tenderers.
(3) The Tender Accepting Authority may, in the first stage,

engage in discussions with eligible tenderers concerning any
aspect of their initial proposals:
Provided that when the Tender Accepting Authority engages in

discussions with any tenderer, it shall extend equal
opportunity to all eligible tenderers to participate in discussions.
(4) At the conclusion of the first stage, the Tender Accepting

Authority shall pre-qualify the tenderers that fulfill the
eligibility criteria, and promptly notify each tenderer whether or
not it has been pre-qualified and shall upon request
communicate to the tenderers that have not been pre-qualified
the reasons therefor:
Provided that if the Tender Accepting Authority is of the view

that the number of pre-qualified Tenderers is too small to have
an effective competition, the authority may decide not to proceed
further with the Tender.
(5) In the second stage, the Tender Accepting Authority shall

invite financial tenders from the pre-qualified and short-listed
tenderers.
(6) The final tenders received under sub-rule (5) shall be

evaluated in order to ascertain the lowest evaluated tenderer
in accordance with these rules.]
33
33. Low Value Procurement.- 53[For the purposes

of
clause (d) of section 16 of the Act, ‘ Low Value Procurement ’
means any procurement, which is less than rupees twenty
five lakhs in value for construction and which is less than
rupees ten lakhs in value for all other categories of
procurement inclusive of consultancies for construction.]
***
53Substituted. [ TNGGE No.212 / 18-08-2009 (No.SRO A-22(a)/2009) - G.O.Ms.No.392 / 18th August, 2009]
.
34
(PUBLIC PRIVATE PARTNERSHIP
PROCUREMENT)RULES, 2012.
35
BLANK PAGE
36
(PUBLIC PRIVATE PARTNERSHIP
PROCUREMENT) RULES, 2012.1
In exercise of the powers conferred by sub-section (1) of section
22 of the Tamil Nadu Transparency in Tenders Act, 1998 (Tamil
Nadu Act 43 of 1998), the Governor of Tamil Nadu hereby makes
the following rules, namely.-
CHAPTER-I.
PRELIMINARY.
1. Short title, commencement and extent.- (1) These rules
shall be called the Tamil Nadu Transparency in Tenders (Public
Private Partnership Procurement) Rules, 2012.
(2) These rules shall come into force on the 26th day of
November, 2012.
(3) These rules will apply to all procurement for Public Private
Partnership (PPP) Projects of a value of more than rupees twenty
five lakhs by any Procuring Entity.
2. Definitions.- In these rules, unless there is

anything repugnant in the subject or context.-
(a) “Act” means the Tamil Nadu Transparency in

Tenders Act, 1998 (Tamil Nadu Act 43 of 1998);
(b) “Applicant” means an entity which has submitted

or is likely to submit a response to the Request for Expression of
Interest (REOI) or Request for Qualification (RFQ), as the case
may be;
1 Published in Part-III – Section 1(a) of Tamil Nadu Government Gazette, Extraordinary
No.328, Dated 26th November 2012. [(No.SRO.A-35 (a) / 2012 - G.O.Ms.No.409 / 26th
November, 2012].
37
TAMIL NADU TRANSPARENCY IN TENDERS (PUBLIC
PRIVATE PARTNERSHIP PROCUREMENT) RULES, 2012.
(c) “Application” means the submission made in

response to a Request for Qualification (RFQ);
(d) “Appointed Date ” means the date on which the

Concession Agreement comes into force and effect in
accordance with the terms outlined therein;
(e) “Concessionaire” means the private sector

participant which has entered into a Public-Private
Partnership;
(f) “Concession Agreement ” means an agreement

entered into between a Procuring Entity and a private sector
participant for and in respect of a Public-Private Partnership;
(g) “Conditions Precedent ” means the obligations

which the Procuring Entity or the Concessionaire or both may be
required to fulfill prior to the financial closure of the Public
Private Partnership (PPP) Project, unless waived in writing by
the relevant party in accordance with the terms of the
Concession Agreement;
(h) “Consortium” means a tenderer comprising of two

or more entities for the purpose of responding to a Tender
Document, such that if the consortium includes a public sector
entity or entities, such public sector entity or entities do not
have a controlling stake in the consortium;
(i) “Contingent Liability ” means a liability accruing to

a Procuring Entity through the Concession Agreement or
Public Private Partnership (PPP) Project on the occurrence or
non-occurrence of an uncertain future event;
(j) “Due Date ” means the date on which a tender

submission is due in response to a Request for Expression of
Interest (REOI) or a Request for Qualifications (RFQ) or a
Request for Technical Proposals (RTP) or a Request for
Proposals (RFP);
38
(k) “Expression of Interest (EOI) ” means the

submission made in response to a Request for Expression of
Interest (REOI);
(l) “ Final Offer” means the commercial offer made by a

tenderer on the basis of the single criterion specified in the
Request for Proposal (RFP);
(m) “ Feasibility Study ” means a preliminary study

made for investment decision-making, to assess the technical,
social, economic and financial viability and the social and
environmental impact of a Project including the demand for the
services, appropriate technology to be adopted, capital cost,
time required for implementation, and such other information
as may be prescribed;
(n) “Independent Auditor ” means an auditor

appointed under rule 45;
(o) “Independent Engineer ” means an Engineer

appointed under rule 46;
(p) “Lead Member of Consortium” means a member of

a consortium who has been designated as the lead member by
the Consortium and shall possess such qualifications as may be
prescribed in the tender documents;
(q) “Letter of Award (LOA) ” means the Letter of Award

issued by the Procuring Entity to the Lowest Tenderer in
accordance with rule 56;
(r) “Minimum Technical Requirements (MTR)” means

the minimum technical requirements as described in rule 37;
(s) "Notice Inviting Tenders " means for the purposes

of these rules, the Notice of Request for Qualification (RFQ) in all
cases where rules 4, 5 and 6 apply and to the Notice of Request
for Proposal (RFP) in cases where sub-rule (2) of rule
3 is invoked.
39
(t) “Performance Security ” means a financial

guarantee in the appropriate form including a security deposit
or bank guarantee or both furnished by the Concessionaire to
the Procuring Entity for the performance of its obligations under
the Concession Agreement;
(u) “Public Private Partnership (PPP) ” means an

arrangement between a public agency and a private sector
participant for the provision of infrastructure through
investment made or through design, development,
construction, maintenance or operation undertaken by the
private sector participant, where risks are allocated between
them such that the private sector participant takes on the risk
beyond the stage of design and construction and the payment
for the services are performance linked, in the form of user
charges, annuities or unitary payments;
(v) “Project Value” means:- (i) in case of Public Private

Partnership (PPP) Projects where the private entity is
expected to make capital investments, the value of the asset or
facility to be constructed including the cost of land, if the cost of
land is to be borne by the private entity; or
(ii) in case of Public Private Partnership (PPP) Projects where the

private entity is not expected to make substantial capital
investments, the current replacement value of the asset or
facility, whose operation and maintenance is proposed to be the
responsibility of private entity;
(w) “Public Sector Comparator ” means the estimated

hypothetical risk-adjusted life cycle cost of a project if it were to
be financed, owned and implemented solely by the government
or its agency;
(x) “ Qualified Applicant” means an Applicant that has

been qualified in the Request for Qualification (RFQ) stage;
40
(y) “Request for Expression of Interest (REOI)”

means the Tender Document prepared and issued in
accordance with Chapter-III;
(z) “Request for Proposal (RFP) ” means the Tender

Document prepared and issued in accordance with Chapter-VI;
(aa) “Request for Qualification (RFQ) ” means the

Tender Document prepared and issued in accordance with
Chapter-IV;
(ab) “Request for Technical Proposal (RTP)” means

the Tender Document prepared and issued in accordance with
Chapter-V;
(ac) “Response ” means any submission required to be

made to the Tender Inviting Authority as per the Tender
Documents;
(ad) “Respondent ” means any entity or consortium

that has submitted or is likely to submit a Response to the
Tender Documents;
(ae) “ Total Project Cost ” means the lowest of the total

project cost mentioned in the tender documents or actual
capital cost of the project upon completion of the Project as
certified by the Independent Engineer; or total project cost as set
forth in the financing documents;
(af) “Value for Money Assessment ” means the

quantitative and qualitative assessment of the costs and
benefits associated with a project. Value for Money
Assessment is used to establish whether implementing a
project in the Public Private Partnership (PPP) mode is an
economically optimal proposition for the Government or the
public agency and it takes into account direct and indirect
project execution costs, financing costs, transaction costs, cost
of asset transfer on project completion, project monitoring costs
and a cost estimation of the possible risks thereof;
41
(ag) “ Variation” means changes which occur during the

course of project development and delivery and shall be
classified into the following forms:
(i) Day-to-day operational variations;
(ii) Known-variations that are likely to arise and whose nature is

known, but time of occurrence and impact are unknown;
(ah) “ Viability Gap Funding ” means a capital grant or

subsidy or equity from the Central or State Governments to
render a Public Private Partnership (PPP) project financially
viable and bankable.
* **
42
CHAPTER-II.
PUBLIC PRIVATE PARTNERSHIP (PPP) -
PROJECT PROCUREMENT PLANNING.
3. Identifying the procurement method for Public
Private Partnership (PPP) Project.- (1) Save as provided for
under these rules, a two-stage, open competitive tendering
under rule 4 shall be the mode of procurement for a Public
Private Partnership (PPP) Project.
(2) For Public Private Partnership (PPP) Projects with a value

less than Rs.10 crore (Rupees Ten Crore), a single stage, two
cover, open and competitive tendering may be adopted where the
qualification information and technical proposal are received in
one cover and the final offer is received in a separate cover.
(3) Under certain circumstances specified under these rules, the

Procuring Entity may in addition to the two stages prescribed in
sub-rule (1) issue a Request for Expression of Interest (REOI) or
a Request for Technical Proposal (RTP) or both prior to the
Request for Proposal (RFP).
(4) The Final Offer shall be in the form of a single objective

criterion which shall be specified in the Request for Proposal
(RFP).
4. Two Stage Open

Competitive Tendering.- The two
stage open competitive tendering shall include the following
stages:
(a) Request for Qualification (RFQ) stage for short- listing

Qualified Applicants, in accordance with Chapter-IV: and
(b) Request for Proposal (RFP) stage for selection of the most
Lowest Tenderer, in accordance with Chapter-VI.
43
5. Open Competitive Tendering with Request for

Technical Proposal(RTP).- (1) Subject to the provisions of
rule 4, in case of exceptionally complex Public Private
Partnership (PPP) Projects, where the Procuring Entity seeks
to assure itself that the Qualified Applicants completely
understand its requirements, the Tender Inviting Authority may
require that the Qualified Applicants to submit Technical
Proposals prior to the Request for Proposal (RFP) stage.
(2) The Request for Technical Proposal stage shall be conducted

as per the provisions of Chapter-V.
(3) In cases not covered under sub-rule (1), the Request for
Technical Proposal (RTP) and Request for Proposal (RFP) stages
shall be combined as per the provisions of rule 41.
6. Open Competitive Tendering with Request for

Expressions of Interest (REOI).- In Projects where the
Procuring Entity is unsure of the likely interest from private
entities in the Project, or where it seeks to explore alternatives
on how best to design the project scope or other parameters of
the Project, the Procuring Entity may adopt multi-stage open
competitive tendering involving a Request for Expressions of
Interest, followed by a two or three-stage processes as per rule 4
or rule 5, as the case may be.
7. Formation of Tender Scrutiny and Evaluation

Committee.- (1) For each stage of procurement under these
rules, the Procuring Entity shall form a Tender Scrutiny and
Evaluation Committee to evaluate the Responses received as
part of the Tender Proceedings.
Provided that the same committee may be retained for all stages
of the procurement.
44
(2) The membership of the Tender Scrutiny and Evaluation

Committee shall consist of:
(a) The head of the Procuring Entity or his nominee, who shall
serve as the Chairman of the Committee;
(b) Secretary to Government of the Administrative Department

concerned or his nominee;
(c) Secretary to Government, Law Department or his nominee

when considered essential;
(d) Secretary to Government, Finance Department or his

nominee;
(e) Representative of the Tamil Nadu Infrastructure

Development Board (TNIDB) for projects covered under the Act;
Provided that the same person may represent both Finance

Department and the Tamil Nadu Infrastructure Development
Board (TNIDB).
(f) Such other experts or persons not exceeding three in number

with relevant experience that the Procuring Entity or the
Government by general or specific order may include.
(3) The Tender Scrutiny and Evaluation Committee shall

perform the following functions:-
(a) Scrutinize and approve the tender documents prior to their

issue and recommend any changes;
(b) Supervise the conduct of pre-submission meetings and

conferences with prospective tenderers;
(c) Supervise the opening of tenders;
(d) Carry out the preliminary examination and detailed

evaluation of the tenders received; and
45
(e) Prepare an evaluation report for the consideration of

the Tender Accepting Authority.
8. Engaging Consultants or Advisors.- Where the

Procuring Entity deems fit, it may engage the services of a
consultant or advisor to assist the Tender Inviting Authority, the
Tender Scrutiny and Evaluation Committee and the Tender
Accepting Authority with the entire tender process or any stage
thereof including the preparation of tender documents and the
evaluation of tenders.
9. Information to be published in the State Tender

Bulletin.- All Notices Inviting Tenders and decisions on
tenders in respect of Public Private Partnership (PPP) projects
shall be published in the State Tender Bulletin.
10. Details to be mentioned in Notice Inviting

Tenders.- The Notice Inviting Tenders shall contain the
following details, namely:-
(a) The name, address and other contact details of the Procuring
Entity and the designation and address of the Tender Inviting
Authority;
(b) Name of the project for which the procurement is to be

effected;
(c) The date upto which and places including websites from
where the tender documents can be obtained;
(d) The amount of Earnest Money Deposit (EMD), if any payable;
(e) The last date, time and place for receipt of tenders;
(f) The date, time and place for opening of tenders received; and
(g) Any other information the Tender Inviting Authority

considers relevant.
46
11. Publication of Notice Inviting Tenders in

Newspapers.- (1) The Tender Inviting Authority shall have the
Notice Inviting Tenders published in the Indian Trade Journal in
all cases where the project value exceeds rupees fifty crores.
(2) The competent authority to release the advertisement shall

be the Director of Information and Public Relations, Chennai.
(3) The number, editions and language of the newspapers in

which the Notice Inviting Tenders shall be published will be
based on the value of procurement and adequate publication
will be ensured in the Districts where the projects are to be
implemented.
(4) For tenders for a project value above rupees fifty lakhs, the
Director of Information and Public Relations, Chennai will
publish the Notice Inviting Tenders as per instructions of the
Procuring Entity and publication of Notice Inviting Tenders for
an additional insertion shall not be made in newspapers not
requested by the Procuring Entity for tenders above rupees
fifty lakhs.
(5) Notwithstanding anything contained in sub-rule (4) for

projects of a value exceeding rupees two hundred crores, the
Notice Inviting Tenders shall be published, once every week for
three consecutive weeks, in atleast two national level
newspapers out of which, one will be a financial or business
newspaper; and in one local newspaper, which is circulated in
the district or city in which the project is to be implemented.
12. Publication in Notice Board, Website and sending

Notice Inviting Tenders to all possible tenderers.-
(1) The Notice Inviting Tenders shall be published on the Notice
Board of the offices of the concerned Public Agency, District
Collectorate and other Public Offices.
47
(2) The Notice Inviting Tenders shall be published on

the website of the Procuring Entities, the Government of Tamil
Nadu website and any other website as may be indicated by the
Government.
(3) The Tender Inviting Authority may, if considers necessary,

send the Notice Inviting Tenders to all possible tenderers
including registered contractors, potential suppliers and any
other well known company or firm directly.
13. Supply of Tender Documents.- (1)

The Tender
Inviting Authority shall make available the tender documents
from the date of publication of the Notice Inviting Tenders.
(2) The tender documents shall be made available for

downloading from the website designated for this purpose by the
Government and from such other websites as may be indicated
by the Tender Inviting Authority on payment of such fees and in
such manner as may be determined.
(3) The tender documents shall also be made available on

payment of such fees as may be determined, including a service
fee to cover the cost of printing at:-
(a) the office of the Tender Inviting Authority;
(b) any other office or place indicated by the Procuring Entity.
(4) The Tender Inviting Authority shall send by registered

post or courier the tender documents to any prospective
tenderer who makes a request for the documents on payment of
fees along with postal charges at the risk and responsibility of
the prospective tenderer.
48
14. Security.- (1) The tenderers shall be required to

provide an Earnest Money Deposit (EMD) ordinarily not
exceeding two percent of the estimated total project cost, which
shall be in the form of a demand draft, banker's cheque,
specified small saving instrument or where the Procuring Entity
deems fit, unconditional, irrevocable bank guarantee.
Provided that in case of operation and maintenance contracts,

the Earnest Money Deposit (EMD) may be determined at a level
not less than ten percent of the likely annual payments or two
percent of the project value, whichever is less.
(2) The Earnest Money Deposit (EMD) shall be forfeited if the

tenderer.-
(a) withdraws his tender after submission but before opening of

the tender, or
(b) following the opening of tender, withdraws its tender
before expiration of the period of effectiveness of the tender; or
(c) fails to furnish the required Performance Security at

the stage, the tenderer is required to do so as per the tender
documents.
(3) The Earnest Money Deposit (EMD) shall remain valid for a
period of not less than 30 (thirty) days beyond the period for
validity of the tender specified in the tender documents in
order to provide the Procuring Entity sufficient time to act if the
security is to be called:
Provided that the Procuring Entity may seek extension of the

period of validity of the tenders and of the Earnest Money
Deposit (EMD).
49
(4) The Earnest Money Deposit (EMD) of tenderers who have not
been selected will be released not later than 60 (sixty) days after
the expiration of the tender validity period, including any
extension thereof, or 60 (sixty) days after the issue of the letter of
award, whichever is earlier.
(5) The Earnest Money Deposit (EMD) of the Lowest Tenderer

shall be discharged when that tenderer furnishes the required
Performance Security.
(6) The Concessionaire shall be required as a condition

precedent to provide Performance Security, ordinarily not
exceeding 5% (five percent) of the Project Value and subject to
any increase or decrease in the Project Value that may occur
during contract performance:
Provided that in case of Operation and Maintenance contracts,

the Performance Security may be determined at a level not more
than 50% (fifty percent) of the likely annual payments due.
(7) The Performance Security shall be in the form of a demand

draft, banker's cheque, specified small saving instrument,
unconditional and irrevocable bank guarantee or where the
Procuring Entity deems fit, in form of an escrow account or a
combination of the different forms.
15. Conflict of Interest.- (1) It shall be the

responsibility of Tender Inviting Authority and Tender Accepting
Authority to ensure that the prospective tenderers do not have a
conflict of interest that affects the Tender Proceedings.
(2) An Applicant or prospective tenderer shall be deemed to

have a Conflict of Interest, if,-
(a) any other prospective tenderer or a member of consortium or

any associate or constituent thereof have common controlling
shareholders or other ownership interest; or
50
(b) a constituent of such prospective tenderer is also a

constituent of another prospective tenderer.
Provided that ‘constituent’ in such cases will not include the

provider of a proprietary technology to more than one applicant;
or
(c) such prospective tenderer, or any associate thereof receives or

has received any direct or indirect subsidy, grant, concessional
loan or subordinated debt from any other Applicant or
Respondent, or any associate thereof has provided any such
subsidy, grant, concessional loan or subordinated debt to any
other Applicant or Respondent, its member or any associate
thereof; or
(d) such prospective tenderer has the same legal representative

for purposes of the Tender Proceedings as any other prospective
tenderer; or
(e) such prospective tenderer, its member or any associate

thereof, has a relationship with another prospective tenderer,
or any associate thereof, directly or through common third
party/ parties, that puts either or both of them
in a position to have access to each other’s information
about, or to influence the Response of either or each other; or
(f) such prospective tenderer, its member or any associate

thereof, has participated as a consultant to the Tender Inviting
Authority and Tender Accepting Authority in the preparation of
any documents, design or technical specifications of the Public
Private Partnership (PPP) Project; or
(g) if any legal, financial or technical advisor of the Tender

Inviting Authority and Tender Accepting Authority in relation to
the Project is engaged by the prospective tenderer, its member
or any associate thereof, as the case may be, in any manner
for matters related to or incidental to the Project:
51
Provided that this clause shall not apply where such advisor was
engaged by the Applicant or Respondent, its member or
associate in the past but such engagement expired or was
terminated 6 (six) months prior to the date of issue of concerned
Tender Document or where such advisor is engaged after a
period of 3 (three) years from the date of commercial operation of
the Project.
16. Clarifications on Tender

Documents.- (1) The
Procuring Entity shall permit Respondents to seek
clarifications on the Tender Documents and shall specify a last
date for the submission of such clarifications in the Tender
Documents.
Provided that the clarifications may be sought from the Tender

Inviting Authority only in writing.
(2) The Tender Inviting Authorities shall specify in the Tender

Documents the e-mail address, postal address and fax number
to which the clarifications may be sent.
(3) The Tender Inviting Authority shall respond to any queries or

requests for clarification received from a Respondent within
the time as mentioned in sub-rule (1) that Respondent can make
his response in a timely fashion.
(4) The Tender Inviting Authority shall, without disclosing the

name of the Respondent seeking the clarification,
communicate the clarification to all Respondents to whom it has
provided the Tender Documents and shall also ensure that the
clarifications are uploaded on the appropriate website.
17. Pre-submission Meeting.- (1) After issue of the

Request for Qualification (RFQ) or Request for Technical
Proposal (RTP) or Request for Proposal (RFP), as the case may
be, the Tender Inviting Authority may, at its discretion,
organize one or more pre-submission meetings for the purpose
of clarifying the queries and understanding the concerns of the
Respondents.
52
(2) The Tender Inviting Authority shall consider comments and

suggestions provided by the Respondents in the pre-submission
meetings and, if required, revise the Tender Documents.
(3) The pre-submission meetings shall not be a substitute for

any other manner of communication of queries by the
Respondents.
(4) The Tender Inviting Authority shall maintain minutes and

the list of attendees of the pre-submission meetings and
circulate them to all attendees.
18. Modification of Tender Documents and

Responses.- (1) Subject to specific provisions contained in
these rules, at any time prior to the due date, the Procuring
Entity may, whether on its own initiative or as a result of a
query, suggestion or comment of an Applicant or a
Respondent, modify the Tender Documents by issuing an
addendum or a corrigendum.
(2) Any such addendum or corrigendum shall be

communicated and will be binding on all Applicants or
Respondents or Tenderers, as the case may be.
19. Manner, Place and Due Date for Submission of

Responses.- (1) The Tender Inviting Authority shall ensure
that adequate arrangements are made for the proper receipt and
safe custody of the tenders at the place indicated for the receipt
of tenders:
Provided that such of the tenders that are received

through electronic mail shall be kept electronically locked.
(2) The Tender Inviting Authority shall take all measures to

ensure that no intending tenderer is hindered in submitting his
tender.
53
(3) The Tender Inviting Authority shall permit the submission of

tenders by post or courier or by electronic submission through
the designated website, wherever applicable:
Provided that the Tender Inviting Authority shall not be

responsible for any delay in transit in such cases.
(4) In the case of tenders not submitted electronically, the

tenderer shall ensure that all the pages are serially numbered
and the submitted tender documents are properly stitched and
bound.
(5) The tenderer shall be responsible for properly superscribing

and sealing the cover in which the tender is submitted and the
Tender Inviting Authority shall not be responsible for
accidental opening of covers that are not
properly superscripted and sealed as required in the tender
documents before the time appointed for opening of tenders.
(6) The Tender Inviting Authority shall not accept any tenders
submitted by facsimile (fax).
(7) The Tender Inviting Authority may extend the last date and
time for receiving tenders which shall be published on the
designated website also after giving adequate notice to all
intending tenderers in cases where: -
(a) the publication of the tender notice has been delayed;
(b) the communication of changes, in the tender documents to

the prospective tenderers under sub-rule (1) of rule 18 took
time;
(c) any of the tenderers requested clarifications the

communication of which to all the tenderers took time; and
(d) any other reasonable grounds, for such extension exist,

which shall be recorded in writing by the Tender Inviting
Authority.
54
20. Withdrawal of
Tenders Before Opening.- (1) No
tenderer shall be allowed to withdraw the tenders after
submitting the tender.
(2) A Tenderer may submit a modified tender before the last date
for receipt of tender.
Provided that where more than one tender is submitted by the

same tenderer, the lowest eligible financial tender shall be
considered for evaluation.
21. Opening of Tenders.- (1) All the

tenders received
by the Tender Inviting Authority shall be opened at the time and
the venue specified in the Notice Inviting Tenders and in cases
where an extension of time for the submission of tenders has
been given subsequent to the original Notice Inviting Tenders in
accordance with sub-rule (7) of rule 19 at the time, so specified
subsequently:
Provided that the e-tenders submitted may be permitted to be

opened by a Tender Inviting Authority or a member of the Tender
Scrutiny and Evaluation Committee from their new location, if
they are transferred after the issue of Notice Inviting Tender and
before opening of tenders and where the new incumbent is yet to
obtain his digital signature certified.
(2) The time specified for the opening of tenders shall be

immediately after the closing time specified for the receipt of
tenders allowing a reasonable period, not exceeding one hour,
for the transportation of the tenders received to the place they
are to be opened.
(3) The tenders will be opened in the presence of the

tenderers or their representative who choose to be present:
Provided that the Tender Inviting Authority may specify the

number of representatives for each tenderer who may be
permitted to be present.
55
22. Procedure to be followed at Opening of

Tenders.- The following procedure shall be followed at the
opening of tenders.-
(a) All the envelopes containing tenders and the tenders received
through the electronic mail in the designated website shall be
counted;
(b) All the tenders received in time shall be opened;
(c) Any tender received subsequent to the time specified for

receipt of tenders shall not be opened and shall be returned
unopened to the tenderer and in the case of tenders submitted
through electronic mail in the designated website, a report on
the late submission of tenders shall be generated and the same
shall be sent to the tenderer concerned;
(d) On opening of the tender, the members of the Tender

Scrutiny and Evaluation Committee shall initial the main tender
including the prices and any corrections;
(e) A record of the corrections noticed at the time of the opening

of tenders shall be maintained;
(f) The name of the tenderers and the quoted prices should be
read out aloud;
(g) The fact whether Earnest Money Deposit (EMD) has been
submitted and the other required documents have been
produced may be indicated, but this shall not constitute an
initial examination under rule 24;
(h) Minutes of the opening of tenders shall be recorded;
(i) The signatures of all the tenderers present shall be obtained

and if any of the tenderers or his representative refuses to sign
that fact shall be recorded.
56
23. Changes and alterations not to be permitted

after Opening of Tenders.- No changes or amendments
which materially alter the final submissions shall be permitted
after the opening of tenders, except as laid down in sub-section
(3) of section 10 of the Act and prescribed in rule 24.
24. Initial Examination to determine substantial

responsiveness.- (1) The Tender Inviting Authority shall
cause an initial examination of the tenders submitted to be
carried out by the Tender Scrutiny and Evaluation Committee in
order to determine their substantial responsiveness.
(2) The initial examination shall consider the following factors,

namely:-
(a) Whether the tenderer meets the eligibility criteria laid down
in the tender documents;
(b) (i) Whether the crucial documents have been duly signed;
(ii) Whether the documents have been authenticated by digital

signature, in the case of tenders submitted through electronic
mail in the designated website.
(c) Whether the requisite Earnest Money Deposit (EMD) with

appropriate validity has been furnished;
(d) Whether the tender is substantially responsive to the

technical specifications and commercial conditions set out in
the tender documents.
(3) Tenders which on initial examination are found not to be

substantially responsive under any of the clauses under
sub-rule (2) shall be rejected by the Tender Accepting
Authority and not taken up for further scrutiny.
57
25. Clarifications on
qualification information.- The
Procuring Entity may, at any stage of the Tender Proceedings,
ask any Applicant or Respondent for clarifications on its
submission, in order to assist in the evaluation of such
submission.
Provided that the Procuring Entity shall.-
(a) not seek or permit any substantive change to the submission,

including changes aimed at qualifying an Applicant or a
Respondent.
(b) not engage in negotiations with an Applicant or a Respondent

with respect to the submission, pursuant to a clarification that is
sought under this rule; and
(c) maintain in the record of Tender Proceedings, all

communications generated under this rule.
26. Confidentiality.- (1) Subject to the provisions of

sections 13 and 14 of the Act, the Tender Inviting Authority shall
ensure the confidentiality of the process of tender evaluation
until orders on the tenders are passed.
(2) The Tender Inviting Authority shall treat all information

submitted as part of a Response, in confidence and will require
all those who have access to such material to treat the same in
confidence and shall not disclose any such information unless.-
(a) directed to do so by any statutory entity that has the power

under law to require such disclosure; or
(b) such disclosure is to enforce or assert any right or privilege of

the statutory entity or the Procuring Entity; or
(c) required to do so by law or in connection with any legal

process.
58
27. Record of Tender

Proceedings.- (1) The Procuring
Entity shall cause to be maintained a record of the Tender
Proceedings.
(2) Such record shall, inter-alia, contain the following;

namely:-
(a) Subject matter of the procurement process;
(b) Basic information, including names and addresses of the

authorized representatives of Respondents;
(c) The submissions made by the Respondents at each stage of

the process;
(d) The report or reports of the Tender Scrutiny and Evaluation

Committee;
(e) Statement of the reasons and circumstances relied upon by

the Tender Inviting Authority and Tender Accepting Authority
for decisions as part of the procurement process;
(f) The requests for clarification and the responses thereof;
(g) Statement of reasons for rejection of tender;
(h) Principal terms of the Concession Agreement; and
(i) The deviations, if any from the model tender documents

where applicable.
***
59
CHAPTER-III.
REQUEST FOR EXPRESSION OF INTEREST.
28. Request for Expression of Interest (REOI).- (1) In
cases where the Procuring Entity decides to proceed under rule
6, the Tender Inviting Authority shall prepare the Request for
Expression of Interest (REOI).
(2) The Request for Expression of Interest (REOI) shall,

inter-alia, contain,-
(a) the description of the Project;

(b) the request for expressions of interest; (c)
a closing date for seeking clarifications.
(3) The Request for Expression of Interest (REOI) shall be

published in accordance with the provisions of rules 9, 10, 11
and 12.
(4) The Expression of Interest (EOI) shall not be used to either

shortlist or disqualify tenderers and any entity which has not
submitted an Expression of Interest (EOI) shall also be allowed
to participate in the Request for Qualification (RFQ) stage as per
terms and conditions that may be specified thereof.
(5) The Tender Inviting Authority may convene meetings to

interact with Applicants, so as to facilitate greater interest and
understanding of the proposed Project among potential private
partners.
(6) The Tender Inviting Authority shall provide for the following
minimum time periods in the schedule of the Request for
Expression of Interest (REOI) stage:
(a) The due date shall ordinarily be not less than 30 (thirty) days
from the date of advertisement or notification of the Request for
Expression of Interest (REOI) whichever is later;
60
(b) Pre-submission meetings convened under sub-rule
(5) shall be held at least 7 (seven) days before the due date; (c)
The clarifications on the queries of Applicants shall

be issued not less than 4 (four) days before the due date; and
(d) Corrigenda or notifications of amendments in the Request for

Expression of Interest (REOI) shall be issued not less than 4
(four) days before the due date.
(7) In exceptional cases, the Tender Inviting Authority may at the

time of issuing Request for Expression of Interest (REOI) reduce
the minimum time limits prescribed in sub-rule (6) for reasons
to be recorded in writing and with the prior permission of the
authority superior to the Tender Inviting Authority:
Provided that in no case shall the due date be advanced after the
publication of the notification or advertisement of the Request
for Expression of Interest (REOI):
Provided further that in cases where the tender documents

require the clearance of the Tamil Nadu Infrastructure
Development Board under the Tamil Nadu Infrastructure
Development Act (Tamil Nadu Act 22 of 2012), such reduction
of time would have to be specifically authorized by the Board.
***
61
CHAPTER-IV.
REQUEST FOR QUALIFICATION.
29. Request for Qualification (RFQ).- (1)
The Request
for Qualification (RFQ) called for under rule 4 is intended for the
following purposes, namely:-
(a) publicise the information on the Public Private Partnership

(PPP) Project and the services or infrastructure or both that the
Procuring Entity seeks to obtain;
(b) communicate the proposed timeframes and the qualification

criteria;
(c) ascertain the level of interest in the Project;
(d) provide an avenue through which prospective tenderers can

comment on the proposed Project; and
(e) allow the Procuring Entity to qualify Applicants who are most
capable of meeting project objectives over the project term for
the Request for Technical Proposal (RTP) stage or Request for
Proposal (RFP) stage or both.
(2) The Tender Inviting Authority preparing the Request for

Qualification (RFQ) shall ensure that,-
(a) the Request for Qualification (RFQ) contains sufficient

information to allow potential tenderers to form a view on
whether they have sufficient capabilities and to identify
potential partners for the Project; and
(b) the information requested from the Applicants is such that

the Procuring Entity is enabled to qualify the Applicants on
that basis.
62
30. Contents of Request for Qualification (RFQ).-

The Request for Qualification (RFQ) document shall contain the
following:
(a) a description of the Project and the estimated Total Project

Cost;
(b) a description of the stages of the tender process and the

proposed schedule of the Tender Proceedings;
(c) the conditions of eligibility of Applicants, the information

sought from Applicants for qualification and the form and
procedure of the Application;
(d) a description of the parameters and method of evaluating

qualification of Applicants in order to identify Qualified
Applicants that have the requisite capability to take up the
Project; and
(e) the criteria or conditions, if any, for the disqualification of

Applicants, such as, Conflicts of Interest and other relevant
considerations.
31. Eligibility of Applicants.- In

addition to any other
criteria for eligibility that may be prescribed in the Request for
Qualification (RFQ) tender documents, in all cases, the following
shall apply, whether or not they have been specifically
provided for in the documents: -
(a) the Applicant may be a single entity or a consortium.

However, no Applicant applying individually or as a member of a
consortium, as the case may be, can be member of another
Applicant;
(b) an Applicant may be a natural person, or a private entity, or a

combination thereof, or a combination with a public agency.
63
Provided that the public agency does not have a controlling

interest in such combination, either with an existing
agreement or the formal intent to enter into an agreement to
form a consortium;
(c) no Applicant shall submit more than one application for the
same Project and an Applicant applying individually or as a
member of a consortium shall not be entitled to submit another
application either individually or as a member of any
consortium, as the case may be.
32. Qualifying Criteria.- (1) The qualifying criteria

used by the Procuring Entity to evaluate the responses to the
Request for Qualification (RFQ) shall be objective, equitable,
unambiguous, and shall be clearly stated in the Request for
Qualification (RFQ).
(2) The qualifying criteria shall cover the following aspects of the
Applicant:
(a) the Applicant’s experience and track record in delivering

projects of similar nature;
(b) the Applicant’s ability to deliver against the physical aspects

of the Project including its ability and track record in
delivering services under long-term contractual arrangements.
(c) the capability of the Applicant to invest the capital that would
be needed for the Project:
(d) the ability of the Applicants to secure adequate funds on

competitive terms, since Projects normally requires the
Concessionaire to finance a substantial part of the Total Project
Cost, if not the whole;
(e) the ability of the Applicant to support the contractual

arrangements over the contract term.
64
(3) Criteria for evaluation of financial capability shall be defined

in terms of any or all of the following,-
(a) net worth of the Applicant as described in the tender

documents;
(b) average annual turnover for a period not less than the
immediately preceding three years derived from audited
financial statements;
(c) average net cash accrual for a period not less than the
immediately preceding three years derived from audited
financial statements; and
(d) any other criteria relevant in the context of a particular

Project.
(4) Based on the nature of the Project, the Procuring Entity

may, in addition to the criteria prescribed in sub-rules (2) and
(3), specify qualifying criteria in relation to the following areas,
namely:-
(a) Existing commitment of the Applicant and capacity to deliver

on the Project in addition to the existing commitments;
(b) Proposed team of experts, if the Project requires specialised

technical expertise; and
(c) Experience of Applicant or the proposed team for working in

local conditions where in the opinion of the Procuring Entity
such conditions are expected to have a material impact on
the development or operation of the proposed facility or service.
(d) Any other criteria relevant in the context of a particular

Project.
(5) As far as may be practicable, the qualification criteria will

be specified on a pass or fail basis to enable objective evaluation
of the tenders.
65
Explanation:- For the purpose of sub-rule (5), a pass

or fail test would includes a test based on a marking system with
a minimum score requirement.
33. Schedule of Request

for Qualification (RFQ).-
(1) The following minimum periods shall be allowed by the
Tender Inviting Authority while determining the schedule of
Request for Qualification stage:
(a) The due date shall ordinarily be not earlier than 8 (eight)
weeks from the date of advertisement or notification of the
Request for Qualification (RFQ) whichever is later;
(b) Pre-submission meeting, if any, shall be held at least 3

(three) weeks before the due date;
(c) The clarifications on the queries of Applicants shall

be issued not less than 1 (one) week before the due date; and

Qualification (RFQ) shall be issued not less than 1 (one) week
before the due date.

time of issuing the Request for Qualifications (RFQ) reduce the
minimum time limits prescribed in sub-rule (1) for reasons to be
recorded in writing and with the prior permission of the
Provided that in no case shall the due date be advanced after the
publication of the notification or advertisement of the Request
for Qualification (RFQ):

66
34. Removal of
Conflict of Interest.- The Procuring
Entity may allow an Applicant, within 10 (ten) days after the due
date, to remove from its consortium any member who suffers
from a Conflict of Interest under rule 15, and such removal
shall be deemed to cure the Conflict of Interest arising in
respect thereof.
35. Evaluation of
Applications.- (1) The submitted
Request for Qualification (RFQ) Applications shall be evaluated
by the Tender Scrutiny and Evaluation Committee by using the
qualifying criteria as specified in the Request for Qualification
(RFQ).
(2) The Applicants shall be assessed on the basis of whether they

achieve the pre-specified minimum pass or fail threshold.
Explanation :- For the purpose of sub-rule (2), a pass

(3) Only those applicants who clear the threshold shall be

qualified for the next stage of the Tender Proceedings, as the
case may be.
36. Notification of
Qualification.- (1) The Procuring
Entity shall promptly notify each Applicant in writing whether or
not it has been qualified.
(2) The Procuring Entity shall make available to any person,

the names of all Applicants that have been qualified.
(3) Only Applicants who have qualified are entitled to participate

further in the Tender Proceedings.
(4) The Tender Accepting Authority may decide not to proceed

further with the tender if the said authority is of the view that
an adequate number of applicants have not qualified to have
a competitive tender.
***
67
CHAPTER-V.
REQUEST FOR TECHNICAL PROPOSAL.
37. Request for Technical
Proposal(RTP).- (1) Subject
to the provisions of rule 5, where the Procuring Entity
determines that a Request for Technical Proposals (RTP) should
be made prior to the Request for Proposals, the Tender Inviting
Authority shall issue a Request for Technical Proposals to all
qualified applicants.
(2) The Request for Technical Proposals (RTP) shall involve a

technical evaluation in the form of a pass or fail test, and only
submissions that pass the minimum technical criteria will be
invited to submit a Final Offer at the Request for Proposal (RFP)
stage.
Explanation :- For the purpose of sub-rule (2), a pass

(3) The Request for Technical Proposals (RTP) shall specify the
Minimum Technical Requirements (MTR), formulated based on
the Feasibility Study or detailed project study or such other
study.
(4) The Minimum Technical Requirements (MTR) shall be a

description of outcomes that are sought to be achieved and not
necessarily the means by which they are to be
achieved and to the extent possible the Minimum Technical
Requirements (MTR) shall be technology and brand neutral.
(5) The Minimum Technical Requirements (MTR) shall

necessarily include the following:
(a) description of the scope of the Project; which shall mean

the physical facilities that need to be constructed, the
capacity of each such facility or its component and related
aspects;
68
(b) output specifications; which shall include a description of

the target users, levels of service, quality standards and
performance parameters;
(c) the design and safety codes or standards that the facility
must comply to, including for management of social and
environmental impacts;
(d) the operation requirements including the standards to be

followed for operations of the facility and provision of service
including standards for safety, security, labour relations,
quality, monitoring, reporting and
dissemination, service levels to be offered to customers
including waiting times and standards for grievance redressal;
(e) maintenance requirements including the

maintenance standards and schedule for compliance; and
(f) testing and performance monitoring requirements specifing

the tests that would be carried out for performance monitoring
and the key performance indicators that would be monitored.
(6) The Request for Technical Proposal (RTP) shall ordinarily

require the Qualified Applicants to submit responses on the
technical solution, business solution and financial plan for
implementing the Project. The Procuring Entity shall define
and document the specific requirements for Technical Proposal
for each Project in the Request for Technical Proposal (RTP),
which have not already been assessed at the Request for
Qualification (RFQ) stage and shall ordinarily include:
(a) Basic information about the Qualified Applicant:
(i) Corporate information about the Qualified Applicant;
(ii) Constitutional documents of the Qualified Applicant;
69
(iii) Annual reports (if required);
(iv) Details about business activities including number of years

of operation, certifications, tie ups and similar arrangements;
and
(v) Any other documents considered relevant.
(b) Experience of the Applicant, relevant to the Project:
(i) Details of the project experience; and
(ii) Certificates and other documentation supporting the project

experience;
(c) Approach and methodology for implementation of the Project,

including:
(i) Understanding of the scope of work;
(ii) Technical solution proposed or the approach for

implementation of the Project;
(iii) Activity plan and schedule;
(iv) Details of the facility or service proposed;
(v) Brief construction plan; and
(vi) Brief operations and maintenance plan;
(d) Business plan for implementation of the Project, including.-
(i) Organisation structure of the Concessionaire;
(ii) Marketing plan;
(iii) Environmental and social impact management plan;
70
(iv) Tie-ups and associations; and
(v) Identification of risks and risk management plan.
(e) Financial plan for implementation of the Project, including.-
(i) Sources of finances and their expected boundary conditions;
(ii) Plan for financial sustainability of the Public Private

Partnership (PPP) Project; and
(iii) Projected financial assessments and key assumptions.
(7) Each of the parameters shall be clearly defined for evaluation

of the Technical Proposal and assigned a maximum score.
(8) The threshold or cut-off score for the pass or fail test
based on Minimum Technical Requirements shall be
pre-determined and specified in the Request for Technical
Proposal (RTP).
38. Schedule of Request for Technical Proposal

(RTP).- (1) The following minimum period shall be allowed
by the Tender Inviting Authority while determining the
schedule of the Request for Technical Proposal (RTP) stage:
(a) The due date shall not be less than 6 (six) weeks from the
date of issue of the Request for Technical Proposal (RTP);
(b) Pre-submission meeting shall be held at least 3 (three) weeks

before the due date;
71
(c) The clarifications on the queries of Qualified Applicants shall

be issued not less than 1 (one) week before the due date; and

Technical Proposal (RTP) shall be issued not less than 1 (one)
week before the due date.

time of issuing the Request for Technical Proposal (RTP) reduce
Provided that in no case shall the due date be advanced after

the issue of invitation of the Request for Technical Proposal
(RTP).

39. Technical Evaluation.-(1) The submitted

Technical Proposals shall be evaluated by the Tender Scrutiny
and Evaluation Committee as per the criteria laid down in the
Request for Technical Proposals (RTP).
(2) The Technical Proposals shall be evaluated on the basis of

whether they achieve the minimum threshold or cut- off score
specified in accordance with sub-rule (7) of rule 37.
40. Notification of passed Technical Proposals to

Qualified Applicants.- (1) The Procuring Entity shall
promptly notify each Qualified Applicant whether or not the
Technical Proposal submitted by it has passed.
72
(2) Only Qualified Applicants whose Technical Proposals have

passed shall be entitled to participate further in the Tender
Proceedings.
41. Combining Request for Technical Proposal with

Request for Proposal.- (1) For cases not covered under
sub-rule (1) of rule 37 to optimize cost and effort when the
Project does not merit a separate stage of Request for Technical
Proposal (RTP), the Procuring Entity may combine the Request
for Technical Proposal (RTP) stage with the Request for
Proposal (RFP) stage to ensure price competition through
adequate number of tenders.
(2) For cases covered under sub-rule (1), the Technical Proposal
and the Final Offer shall be submitted in separate sealed
envelopes.
(3) The Tender Inviting Authority shall open only the
Technical Proposal for evaluation on the due date and time. (4)
The Technical Proposal shall be evaluated based on

the technical parameters announced in the Request for
Proposal (RFP) and list of technically qualified tenderers
announced.
(5) The Final Offers of only the technically qualified tenderers

shall be opened, after due intimation of the time and place of
opening and evaluated.
(6) In the event that Request for Technical Proposal (RTP)

stage is proposed to be combined with the Request for
Proposal (RFP) stage, the Procuring Entity shall ensure that the
relevant provisions of rule 37 are reflected in the Request for
Proposal (RFP).
***
73
CHAPTER-VI.
REQUEST FOR PROPOSAL.
42. Request for Proposal (RFP).- (1) The
Tender
Inviting Authority shall prepare the Request for Proposal (RFP)
and the Draft Concession Agreement and issue it to all the
qualified applicants.
(2) The Request for Proposal (RFP) shall solicit the binding Final
Offer from tenderers in a separate sealed cover.
(3) The Request for Proposal (RFP) shall contain

the following.-
(a) Feasibility Report or Project Information Memorandum or

both which will provide such information to tenderers as is
required to evaluate the Project and estimate their Final Offer
including:
(i) Project objectives and rationale;
(ii) Site details;
(iii) Role of the public agency and stakeholders;
(iv) Project scope in accordance with rule 43; and
(v) Output specifications;
(b) Instruction to Tenderers which would define the process of

tender submission and evaluation. This section shall include
all procedures, terms and conditions which should be
followed by the Tenderers for submission of their tenders and
which would be followed by the Procuring Entity in accepting
and evaluating the Tenders;
74
(c) The draft Concession Agreement which shall govern the

contractual relations between the Concessionaire and the
Procuring Entity detailing the rights and obligations of both the
parties, definition of the subject matter of the agreement,
payment terms, performance obligations, defaults and their
consequences, events of termination and other ancillary clauses
as provided in Schedule-I of this rule.
(4) In case of any discrepancy between the Project Information

Memorandum or the Feasibility Study Report and the Draft
Concession Agreement, the Draft Concession Agreement shall
prevail.
43. Project Scope.- (1) The Procuring Entity

shall set
out the detailed description of the Public Private Partnership
(PPP) Project and the project scope in the Request for Proposal
(RFP).
(2) To the extent practicable, the description of the Project and

project scope shall be objective, functional and generic, and
shall set out the relevant technical, quality and performance
characteristics expected.
(3) There shall be no requirement for or reference to a particular

trademark or trade name, patent, design or type, specific origin
or producer unless there is no sufficiently precise or
intelligible way of describing the characteristics of the project
scope and specifications and provided that words such as “or
equivalent” are included.
44. Revenue Sharing or Revenue Support

Mechanisms.- (1) While preparing the draft Concession
Agreement for any project, the Procuring Entity taking note of
the monopoly nature of the public service to be provided by the
Concessionaire under a Public Private Partnership (PPP) Project
shall specifically consider whether to provide for revenue
sharing or revenue support mechanisms within the Concession
Agreement and if considered necessary, include necessary
provisions in the Agreement.
75
(2) The revenue-sharing or revenue support mechanism

for the Project should be designed in such a way as to ensure
that:
(a) the Concessionaire does not enjoy super-normal or wind fall

profits and at the same time does not suffer due to unforeseen
revenue-side risks.
(b) the mechanism does not curtail private efficiency and at the
same time does not compensate the Concessionaire for risks
rightfully meant to borne by the Concessionaire under the
Concession Agreement.
45. Appointment and Role of Independent Auditor.-

(1) While preparing the draft Concession Agreement for any
project, the Procuring Entity shall specifically consider the need
to appoint an Independent Auditor for the project and if
considered necessary, include necessary provisions in the
Agreement.
(2) An Independent Auditor shall be appointed with the specific

prior concurrence of the Procuring Entity and shall not be
removed or replaced without the approval of the Procuring
Entity.
(3) The Independent Auditor’s scope of work shall be

specified in the Concession Agreement and shall inter-alia
include certifying the accuracy and correctness of any
financial calculations or claims required to be made by
Concessionaire under the Concession Agreement.
(4) The Independent Auditor shall prepare and submit to the

Procuring Entity a quarterly report and such other special
reports as the Procuring Entity may seek.
(5) An indicative scope of work for the Independent Auditor is

provided for guidance in Schedule-II of this rule.
76
46. Appointment and Role of Independent

Engineer.- (1) While preparing the draft Concession
Agreement for any project, the Procuring Entity shall specifically
consider the need to appoint an Independent Engineer for the
project and if considered necessary, include necessary
provisions in the Agreement.
(2) The Independent Engineer’s scope of work shall be

specified in the Concession Agreement and shall inter-alia
include:
(a) Review, inspection and monitoring of construction works,

examination of the designs / drawings and conduct of tests;
(b) Issue of progress reports and completion certificates

during and after completion of the construction period;
(c) Review and inspection of the operations and maintenance

arrangements and monitoring compliance with the performance
and maintenance standards, during the operations period;
(d) Identifying delays and lapses that require action on part of

the Procuring Entity for enforcing the agreement terms;
(e) Determining the reasonableness of costs for any works or

services, as required under the Concession Agreement;
(f) Determining the period or extension thereof, for performing

any duty or obligations, as required under the Concession
Agreement;
(g) Carrying out such responsibilities as are assigned by the

Procuring Entity.
77
(3) The Independent Engineer shall prepare and submit

to the Procuring Entity a monthly progress report.
(4) An indicative scope of work for the Independent

Engineer is provided for guidance in Schedule-III of this rule.
(5) The Independent Engineer shall, at the close of the

Concession Agreement, take stock of the asset to be reverted to
the Procuring Entity and submit a report on the same in
comparison to the asset handed over for operation at
commercial operations date and the value addition made
thereon.
47. Role of Lead Financial

Institution.- (1) While
preparing the draft Concession Agreement for any project, the
Procuring Entity shall specifically consider the need to include a
provision to require the Concessionaire to identify a Lead
Financial Institution and if considered necessary, include
necessary provisions in the Agreement.
(2) Subject to sub rule (1), the Concession Agreement shall have
provisions requiring the submission of quarterly reports by Lead
Financial Institution to the Procuring Entity on the following
aspects,- namely:-
(a) Financial progress,
(b) Statement of debt and equity contribution, and
(c) Any other relevant financial information, as required.
48. Treatment of Variation.- (1) The

Concession
Agreement shall provide that day-to-day operational variations
which have no material impact on the project variables should
be managed by the Concessionaire.
78
(2) The Concession Agreement may provide for the procedure

for amending the Agreement as a consequence for known
variations, and day-to-day operational variations that are likely
to have a material impact on the Project.
(3) Such procedures for amendment shall take note of the

nature of variation and its impact on contract terms and in case
of material variations in contract terms, require an additional
value for money assessment to be undertaken.
49 . Evaluation Criteria.- (1) The Request for Proposal

(RFP) shall specify the commercial conditions of the Tender and
the single criterion for the Final Offer which would be used to
determine the Lowest Tenderer.
(2) The single criterion specified in the Request for Proposal

(RFP) for the Final Offer may be any one or a combination of the
following:
(a) state support sought;
(b) expected revenue including from sources such as property

development and advertisement;
(c) tariff;
(d) present value of lifecycle cost;
(e) period of the concession;
(f) upfront premium;
(g) equity stake;
(h) share of subsidized facilities to the Procuring Entity; (i)
revenue share;
(j) lease rent;
79
(k) annuity payment;
(l) any other financial criterion relevant to the project;
(3) The Request for Proposal (RFP) shall clearly and specifically
define the form and content of the Final Offer and state that the
Lowest Tenderer shall be selected on the basis of the most
advantageous Final Offer.
50. Schedule of Request for

Proposal (RFP).- (1) The
following minimum periods shall be followed by the Tender
Inviting Authority while determining the schedule of the
Request for Proposal (RFP) stage:
(a) The due date shall be no later than 8 (eight) weeks from the
date of advertisement or notification of the Request for Proposal
(RFP) whichever is later;
(b) Pre-submission meeting shall be held not less than

4 (four) weeks before the due date;
(c) The clarifications on the queries of Qualified Applicants shall

be issued not less than 2 (two) weeks before the due date; and
(d) Corrigenda or notifications of amendments in the

Request for Proposal (RFP) or Draft Concession Agreement
shall be issued not less than 1 (one) week before the due date.
(2) In exceptional cases, the Tender Inviting Authority

may at the time of issuing the Request for Propsoal (RFQ) reduce
authority superior to the Tender Inviting Authority.
Provided that in no case shall the due date be advanced after

such date and time has been notified to the Qualified Applicants
or Tenderers.
80

51. Data Room.- (1) In cases where the

Procuring
Entity is of the view that the Project requires substantial project
related data to be made available to the prospective tenderers,
the Procuring Entity shall maintain either a physical or a
virtual data room or both where project- specific information
shall be maintained.
(2) The data room shall be maintained in a single physical

location or website, for a limited period of time, where the
Tenderers shall be permitted only to review such documents,
which are otherwise not distributed.
(3) All qualified applicants or prospective tenderers, as

the case may be, shall be allowed to access the data room.
(4) The data room will be maintained by the Procuring Entity

until the completion of the Request for Proposal (RFP) stage.
(5) The location and rules for accessing the data room shall be
stated in the Request for Proposal (RFP).
52. Site Visit.- (1) If the Public Private Partnership

(PPP) Project involves important site-related issues, a site visit
shall be organised early in the Request for Proposal (RFP) stage.
(2) All qualified applicants or prospective tenderers, as the case

may be, shall be invited to undertake the site visit.
81
(3) Non-discriminatory access to the site facilities based

on prior requests by the qualified applicants or prospective
tenderers may also be allowed by the Tender Inviting Authority
to the extent practicable and considered necessary.
53. Change in Composition of

Consortium.- (1)
Where the Tenderer is a consortium, change in the composition
of a consortium may be permitted by the Procuring Entity prior
to the due date, only where:
(a) The application for such change is made not later than 15
(fifteen) days prior to the due date;
(b) The lead member of the consortium remains unchanged;
(c) Based on requirement, a substitute is proposed at

least equal, in terms of financial or technical capacity or both,
to the consortium member who is sought to be substituted;
(d) The modified consortium continues to meet the pre-

qualification and short-listing criteria for the Tender
Proceedings;
(e) The new member or members expressly adopt the Responses

already made on behalf of the consortium as if party to it
originally; and
(f) The new member or members do not have a Conflict of

Interest in terms of rule 15.
(2) Approval for change in the composition of a consortium

shall be at the sole discretion of the Procuring Entity and shall
be communicated by the Procuring Entity to the Tenderer in
writing.
(3) The reconstituted consortium shall submit a revised

agreement before the due date.
82
54. Effectiveness of Tenders.- (1)

Tenders shall be in
effect during the period of time specified in the Request for
Proposal (RFP).
(2) Prior to the expiry of the period of validity of Tenders, the

Procuring Entity may request Tenderers to extend the period
for an additional specified period of time. A Tenderer may refuse
the request without forfeiting its Earnest Money Deposit (EMD).
(3) If a Tenderer agrees to extend the period of validity of its

Tender, the Procuring Entity shall procure an extension of the
period of effectiveness of Earnest Money Deposit (EMD) as
provided by such Tenderer or call for new Earnest Money
Deposit (EMD) for the additional specified period of time.
(4) If a Tenderer has not extended the Earnest Money Deposit

(EMD), or has not provided a fresh Earnest Money Deposit
(EMD), it shall be considered as refusal of the request to extend
the period of effectiveness of its Tender.
55. Evaluation of Tenders.- (1)

Evaluation of
submitted Tenders shall be carried out by the Tender Scrutiny
and Evaluation Committee.
(2) The Tender evaluation shall follow the pre- determined

criteria as specified in the Request for Proposal (RFP).
56. Selection of
the Lowest Tenderer.- (1) All
qualified tenders adjudged responsive shall be ranked in
accordance with the evaluation criterion specified in Request for
Proposal (RFP) and the Tenderer with the financially most
advantageous Final Offer shall be the Lowest Tenderer.
(2) Subject to the provisions of sub section (3) of section 10 of

the Act, the Tender Accepting Authority may negotiate with the
Lowest Tenderer for a further improvement of the Final Offer.
83
Provided that there shall be no negotiation on or

changes to the provisions of the draft Concession Agreement.
(3) In the event that the Lowest Tenderer identified in

accordance with sub-rule (1) is rejected in accordance with
sub-section (4) of section 10 of the Act or withdraws, the Tender
Accepting Authority may, in the second round of bidding
invite all the remaining Tenderers to revalidate or extend their
respective Earnest Money Deposit (EMD), as necessary, and
match the Tender of the aforesaid Lowest Tenderer.
(4) If in the second round of bidding, only one Tenderer matches

the aforesaid Lowest Tenderer, such Tenderer shall be selected
the Lowest Tenderer. If in the second round of bidding, two
or more Tenderers match the said Lowest Tenderer then the
Tenderer whose Tender was lower or more advantageous as
compared to other Tenderers in the first round of bidding shall
be selected as the Lowest Tenderer.
Illustration: If the third and fifth ranked Tenderers in

the first round of bidding offer to match the said first ranked
Tenderer in the second round of bidding, the said third rank
Tenderer shall be the Lowest Tenderer.
(5) In the event that no Tenderer offers to match the Lowest

Tenderer in the second round of bidding as specified under this
rule, the Tender Accepting Authority may for reasons to be
recorded in writing, initiate a third round of bidding in which the
said authority invites from all tenderers except the Lowest
Tenderer of the first round of bidding or annul the tender
process, as the case may be.
(6) In case, the Tenderers are invited for the third round of
bidding, they will be required to revalidate or extend their tender
security, as necessary, and offer fresh offers.
84
Provided, however, that in such third round of bidding only such

offers shall be eligible for consideration which are lower than the
tender of the second Lowest Tenderer in the first round of
bidding.
57. Treatment of
Two Equal Tenders .- In the event
that two or more Tenderers have quoted the same Final
Offer, the Lowest Tenderer shall be identified by adopting one of
the following approaches, which shall be pre-specified in the
Tender Documents:
(a) by taking into account the aggregate experience score of each

such tenderer from the Request for Qualification (RFQ) stage,
wherein the Tenderer with higher score shall be adjudged the
Lowest Tenderer; or
(b) by asking the Tenderers who have quoted the same Final
Offer to provide their best and final offer. The Tenderer offering
the most advantageous Final Offer at this stage shall be
adjudged the Lowest Tenderer.
58. Treatment of
Speculative Tenders.- (1) The
Tender Accepting Authority may reject a tender if it has
determined that the financial bid in combination with other
constituent elements of the tender is abnormally low or
abnormally high in relation to the subject matter of the
procurement and raises concerns with such authority as to the
ability of the Tenderer to perform the Public Private
Partnership (PPP) contract.
(2) Before arriving at a determination under sub-rule

(1), the Tender Accepting Authority may in writing seek such
other information from the Tenderers as it considers relevant:
(3) The decision of the Tender Accepting Authority to reject a

submission in accordance with this rule and the reasons for that
decision, and all communications with the Tenderer under this
rule shall be included in the record of the Tender Proceedings.
85
(4) The decision of the Tender Accepting Authority and

the reasons therefor shall be promptly communicated to the
Tenderer concerned.
59. Tender Finalization and Award.- (1)

The results
of evaluation of tenders shall be submitted to the Tender
Accepting Authority for approval.
(2) The Lowest Tenderer shall be notified by the Tender Inviting

Authority after obtaining approval of the Tender Accepting
Authority.
(3) On receipt of approval of the Tender Accepting Authority,

the Tender Inviting Authority shall communicate to other
Tenderers about the selection of the Lowest Tenderer, and
its intention to execute the Concession Agreement with the
Lowest Tenderer.
(4) After selection, a Letter of Award (LOA) shall be issued, in

duplicate, by the Procuring Entity to the Lowest Tenderer
with the condition that the Lowest Tenderer shall, within 7
(seven) days of the receipt of the Letter of Award (LOA), sign and
return a duplicate copy of the Letter of Award (LOA) in
acknowledgement thereof.
(5) Subject to fulfilment of the requirements specified in the

Request for Proposal (RFP) and of the Letter of Award (LOA) the
Lowest Tenderer will be required to enter into a Concession
Agreement with the Procuring Entity and the Procuring
Entity shall execute the Concession Agreement with the Lowest
Tenderer.
60.
Monitoring of Concession Agreement. - (1)
Procuring Entity that enters into a Concession Agreement shall
make adequate institutional arrangements to monitor the
performance of the Concessionaire under such agreement.
86
(2) Such arrangements shall include the receipt, study and

corrective action based on the reports of the Independent
Engineer and Independent Auditor.
61. Change in Ownership.- (1) In the

event that the
Lowest Tenderer is a consortium, the members of such
consortium shall collectively hold such proportion of the issued
and paid up share capital of the Concessionaire for the term of
the Concession and at stages as may be specified in the
Concession Agreement:
Provided that such proportion shall not be less than

51. (fifty one percent).
(2) In the event of a change of a member of a consortium or an

Associate whose technical capacity or financial capacity or
both was taken into consideration for the purposes of
pre-qualifying the Tenderer, prior to the signing of the
Concession Agreement, the tenderer shall inform the authority
forthwith along with all relevant particulars about the same
and the Procuring Entity may, at its sole discretion, disqualify
the tenderer or terminate the
Letter of Award (LOA), as the case may be, and also forfeit the
Earnest Money Deposits (EMD) or the performance security. (3)
In the event of a change as described in sub-rule

(2) occurs after signing of the Concession Agreement but prior
to Financial Closure of the Public Private Partnership (PPP)
Project, it would, notwithstanding anything to the contrary
contained in the Concession Agreement, be deemed to be a
breach thereof, and the Concession Agreement shall be liable to
be terminated without the Procuring Entity being liable in any
manner whatsoever to the Concessionaire.
***
87
SCHEDULE-I.
[see rule 42(3)(c)]
PROVISIONS OF THE DRAFT CONCESSION

AGREEMENT.
The provisions of the draft Concession Agreement shall
inter-alia necessarily cover:
(i) Recitals- identifying the parties to the contract, offer and

acceptance;
(ii) Definitions- defining the key terms of the contract to ensure

uniformity of usage and interpretation throughout the
document;
(iii) Scope of the Public Private Partnership (PPP) Project;
(iv) Grant of concession, whereby the Procuring Entity grants

the concession to the Concessionaire subject to the terms and
conditions of the Concession Agreement;
(v) Conditions precedent;
(vi) Obligations of the Concessionaire;
(vii) Obligations of the Procuring Entity;
(viii) Representations and warranties of both the parties;
(ix) Form and value of Performance Security to be submitted

by the Concessionaire;
(x) Matters related to the site;
(xi) The construction of the facility including Minimum

Technical Requirements thereof, date for completion of
construction etc.;
88
(xii) Performance monitoring during construction including key

performance indicators, monitoring responsibilities and related
provisions;
(xiii) Completion of construction including provisions for testing,

approval and certification;
(xiv) Change in scope during the contract period;
(xv) Operation and maintenance of the facility and provision

of service including minimum technical requirements;
(xvi) Performance monitoring during operations and

maintenance including key performance indicators, monitoring
and reporting responsibilities and related provisions;
(xvii) Appointment, role and functions, remuneration and

reporting requirements of Independent Engineer and
Independent Auditor;
(xviii) Financial close;
(xix) State support, grant expected or revenue share or premium

to be paid;
(xx) Payments by users, authority for tariff fixation,

procedure of revision of tariff and related provisions;
(xxi) Collection of user charges, including allocation of the

authority to collect and retain user charges;
(xxii) Financial aspects of the contract including escrow

account, other payments between the parties to the contract;
(xxiii) Maintenance of books of accounts and audit

requirements;
(xxiv) Insurance;
89
(xxv) Force Majeure – definition, procedure for recognition

under the contract, consequences and compensation on
termination due to occurrence of Force Majeure events;
(xxvi) Events of default and consequences of default;
(xxvii) Termination of the contract and consequences of

termination;
(xxviii) Assignments and charges;
(xxix) Change in law including consequences for change in law;
(xxx) Liability and indemnity; and
(xxxi) Dispute resolution.
***
90
SCHEDULE-II.
[see rule 45(5)]
SCOPE OF WORK FOR INDEPENDENT

AUDITOR.
(1) The role of the Independent Auditor would encompass:
(a) Advising Procuring Entity in the calculation of all financial

parameters of the Project including the Total Cost of the Project,
Returns and Recovery accounting and shall provide, at the
end of each financial year, a certificate confirming the
accuracy of all calculations made during the relevant financial
year.
(b) Verification of the records and invoices provided by the

Concessionaire and shall advise the Procuring Entity of the
results of his quarterly audit within one month after the end of
the relevant quarter.
(2) The scope of work as envisaged will be carried out during two
different stages of the project.
- Construction Stage.
- Operation Stage.
(3) The Independent Auditor would carry out the work specified
as scheduled above and would employ qualified and experienced
person of the type and nature as desirable to carry out the
assignment.
(4) the appointment of the Independent Auditor would be for a

period of three years initially and could be extendable as
mutually agreed between the parties concerned.
91
(5) The Independent Auditor would employ a team of qualified

Chartered Accountants / Cost Accountants / other professions
as may be relevant to carry out the assignment besides other
support personnel as may be desirable.
(6) The Concessionaire will be required to provide all the

necessary information as may be required by the Independent
Auditor and will provide access to all the records as may be
necessary to enable the Independent Auditor to carry out their
responsibilities.
***
92
SCHEDULE-III.
[see rule 46(4)]
SCOPE OF WORK FOR INDEPENDENT

ENGINEER.
1 . Scope.- (1) Indicative Terms of Reference for the
Independent Engineer [the “Indicative Terms of Reference
(TOR)”] for development of the [……] Public Private Partnership
(PPP) Project. The Public Private Partnership (PPP) Project is
contemplated for [….].
(2) Terms of Reference (TOR) shall apply to construction,

operation and maintenance of the Public Private Partnership
(PPP) Project and Project Assets (Civil Structures, Plant and
Machinery, any other as defined in Concession Agreement).
2 . Role and functions of the Independent

Engineer.- (1) The role and functions of the Independent
Engineer shall include the following:
(a) Review of the Drawings and Documents;
(b) Review, inspection and monitoring of Construction Works;
(c) Review, inspection and testing of Civil Works, Plant and

Machinery;
(d) Conducting Tests on completion of construction and issuing

Completion / Provisional Certificate;
(e) Review, inspection and monitoring of Operation and

Maintenance (O&M);
(f) Determining the costs of any works or services and / or their

reasonableness;
93
(h) Determining the period or any extension thereof, for

performing any duty or obligation; and
(i) Assisting the Parties in resolution of disputes.
(2) The Independent Engineer shall discharge his duties in a fair,

impartial and efficient manner, consistent with the highest
standards of professional integrity and Good Industry Practice.
3 . Termination.- The Independent Engineer shall

inspect the Project Assets in accordance with the Exit Strategy.
4 . Reporting Requirement.- The Independent

Engineer shall prepare and submit to the Project Management
Facility (PMF) of Procuring Entity 3 (three) copies and
Concessionaire 2 (two) copies each of the following reports:
(a) Design Review Phase: Monthly Progress Report.
(b) Construction Phase: Monthly and Quarterly Inspection

Report covering all aspects such as Progress Monitoring, Quality
Assurance (QA) / Quality Control (QC) etc.
(c) Operation and Maintenance Phase:
(i) Monthly and Quarterly report on existing condition of facility

including advise on all aspects of Operation and Maintenance,
Toll Booths, Bridges or other Structures, Traffic Management
and Safety, Telephone, Ambulance, etc.; and
(ii) Monthly report on audit of the traffic using the Public

Private Partnership (PPP) Project Highway at least once a month;
(d) Various other reports as provided in the Concession

Agreement such as Completion Report.
***
94
GUIDELINES TO BE FOLLOWED
WHILE PUBLISHINGADVERTISEMENTS
INNEWSPAPERS, ETC.
95
BLANK PAGE
96
GUIDELINES TO BE FOLLOWED WHILE PUBLISHING
ADVERTISEMENTS IN NEWSPAPERS, ETC.
Financial Limits for advertising Tender Notices in various

Newspapers will be as follows:
All other
categories of
Number of Dailies Procurement
Sl. and Editions Estimated Value of inclusive of
in which
No. Construction Materials,
Advertisements Work. Equipments, Food
are to be issued. Items and
Consultancies for
Construction.
1. Above Rs.10 Lakhs Above Rs.5 Lakhs

District Level Advertisement: and and
Two Tamil Dailies (District Upto Rs.25 Lakhs Upto Rs.10 Lakhs
Level Editions only)
Above Rs.25 Lakhs Above Rs.10
2. State Level Advertisement: and Lakhs and
One English Daily Upto Rs.1 Crore Upto Rs.25 Lakhs
(Tamil Nadu Edition) and
One Tamil Daily
(All Editions in Tamil Nadu)
Above Rs.1 Crore Above Rs.25 Lakhs
3. One English Daily and and
( South India Edition) and Upto Rs.5 Crores Upto Rs.1 Crore
One Tamil Daily
4. One English Daily Above Rs.5 Crores Above Rs.1 Crore
( All India Edition) and
One Tamil Daily
5. Publication in Above Rs.50 Crores Above Rs.50 Crore

Indian Trade Journal
[G.O.Ms.No.307, Finance (Salaries) Department, Dated 1st November, 2011]
The aforesaid norms will be subject to the following conditions:
(a) In addition to the publication of the tender notices in
newspapers, it shall also be published in the dedicated
government website for tenders in accordance with rules
already in force. All tender notices shall include the web
address of this dedicated website, which at
present is www.tenders.tn.gov.in.
97
(b) When more than one tender is bunched in a tender

notice, the highest value among the individual tenders
should be considered to determine the applicable
norm. The sum total of values of all individual tenders
cannot be considered.
(c) Tender Inviting Authorities, in their communication to

the Director of Information and Public Relations (DIPR)
for publishing the Tender Notice, should clearly specify
the size of the required advertisement and the Director of
Information and Public Relations(DIPR) should not place
advertisements in excess of the required space. The
maximum size of the advertisement of the tender notice
shall be 50 sq.cm for all procurements up to Rs.5 crores
and shall be 100 sq.cm for all procurements above
Rs.5 crores but up to Rs.50 crores. For procurements
above Rs.50 crores, there shall be no size restriction, but
Tender Inviting Authorities may, as far as possible,
restrict the same
to 100 sq.cm.
(d) Tender Inviting Authorities, in their communication to

the Director of Information and Public Relations(DIPR)
for publishing the Tender Notice, should clearly
specify the estimated value of procurement. In the case
of civil works, value as per the detailed estimate should
be adopted. In the case of other procurements, the cost
projected while obtaining the administrative sanction
should be adopted. In rare cases, where this is not
possible like routine procurement for ongoing schemes
like Noon-Meals, Public Distribution System (PDS), etc,
the per unit price obtained in the previous tender
multiplied by the quantity sought to be procured can be
taken as the basis of the estimated
cost.
(e) In the case of international competitive biddings, it

would be open for the Tender Inviting Authority to give
additional advertisements in more number of
newspapers.
98
(f) In case of procurement under externally funded

projects or other funded projects, if the norms insisted
upon by the funding agency require publication in more
number of newspapers or a bigger size for the Tender
Notice, the same is permissible.
(g) The aforesaid conditions will be in addition to all other
mandatory conditions under the Tamil Nadu
Transparency in Tenders Act,1998 (Tamil Nadu Act 43 of
1998) and the Tamil Nadu Transparency in Tenders
Rules,2000.
(h) The aforesaid conditions apply only for procurement of
goods and services and shall not apply for
advertisements like those regarding regular recruitment
into government service, publicity for government
programmes, etc.
(i) The expression ‘Construction’ in this Government Order

will have the same meaning as the expression
‘Construction’ in Section 2(a) of the Tamil Nadu
Transparency in Tenders Act, 1998 (Tamil Nadu Act 43
of 1998) and shall cover all civil works including
maintenance or renovation of existing structures.
[G.O.Ms.No.392, Finance (Salaries) Department, Dated 18th August, 2009]
Clarification
Rule 33 of the Tamil Nadu Transparency in Tenders Rules, 2000

prescribes the limit for low value procurement. If the Tender
Inviting Authority chooses to follow the Open Tender procedure for
more than Rs.5 lakhs and within Rs.10 lakhs and for all
procurement in excess of Rs.10 lakhs, they have to follow the
guidelines as ordered in the G.O.Ms.No.307, Finance (Salaries)
Department, Dated 1st November, 2011.
[Govt. Lr. No.11746/ Finance (Salaries)/2012, Dated 1st March, 2012]
***
99

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FINANCE [Salaries] DEPARTMENT

2. Definitions.- In these rules, unless there is

1 Published in Part-III – Section 1(a) of Tamil Nadu Government Gazette, Extraordinary

(c) “Fixed Rate Contract ” means a contract where a

(d) “ Pre-qualification” means the process by which

(e) “Two-cover System ” means a procedure under

(f) “Earnest Money Deposit (EMD) ” means the

Provided that where appropriate, unit rates or prices for each of

3Substituted. [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012].

(h) “Multi-Stage Tender” means a tender in which

(i) “ Piece-Work Contract” means a contract under

(j) “ Turn-key Contract ” is a contract under which the

(2) While the provisions of these rules shall apply in general to

4. Methods of Tendering.- (1)

(i) Piece-work Contract

(2) The Tender Inviting Authority shall decide the method of

(2) The State Tender Bulletin shall be published by the

(3) The Tender Bulletin Officer shall cause to be published all

(4) In case a Notice Inviting Tender or information relating to

(2) The Tender Bulletin Officer shall make available adequate

(3) Any person or institution can be enrolled as a regular

(2) A Notice Inviting Tender will not be invalidated merely on the

8. Information to be published in the District

9. Information to be published in the State Tender

(a) The value of procurement exceeds rupees twenty five lakhs;

(b) The Tender Inviting Authority is a Secretary to Government,

(c) In any other case, where the Tender Inviting Authority

10. Details to be mentioned in Notice Inviting

(a) The name and address of the Procuring Entity and

11. Publication of Notice Inviting Tenders in

(2) The number, editions and language of the

(3) In cases where publication of Tender Inviting Notice is to be

(4) The Notice Inviting Tender shall be given due publicity in

12. Sending Notice Inviting Tenders to all possible

7Substituted. [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012].

(2) Unbiased technical specifications shall be prepared by

(a) use of brand names and catalogue numbers shall be avoided

practicable specify the output or service levels to be delivered.]

(b) wherever possible the appropriate Indian Standards

(c) in the case of construction tenders, detailed estimates

Provided that for large and prestigious projects, the Government

(d) in case alternative designs or materials are permitted, the

8Added. [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012].

14. Commercial Conditions.- (1) The tender

Provided that any category of tenderers specifically exempted by

(3) The tender documents shall require that as a guarantee of

(b) the deposit being in the form of demand draft or bankers’

9Substituted. [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012].

10Substituted [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012].

(4) The tender documents shall clearly indicate the payment

Provided that payment of advance may be made in the following

(i) in cases where goods, commodities and services are procured

(ii) in cases where there is single source of supply only and

(iii) in cases of purchase during natural calamities and

(iv) in cases of purchase of life saving drugs; and

(v) in cases where the standard commercial terms of supply

(b) Mobilization advances may be paid in the case of

Provided that such mobilization advances shall not ordinarily

(c) Percentage of payment to be withheld for the effective

Provided that withheld amounts do not exceed ten per cent of