NTPC LTD.

(CONTRACT SERVICES - PLANNING & SYSTEMS GROUP)

Ref. No. CS-QS-C-834 Date: 31.12.2021

CIRCULAR NO. 834

Sub: PROCEDURE REGARDING BANK GUARANTEES (BGs) AGAINST BID

SECURITY/ EMD, CONTRACT PERFORMANCE GUARANTEE (CPG) AND
OTHER BANK GUARANTEES (BGs)

1.0 NTPC awards various contracts from Corporate Centre / SSCs / USSC / Sites for
Project construction / R&M activities / O&M activities and for other requirements. In
such Contracts, Bank Guarantees (BGs) are received as per provisions of
respective Bidding Documents / Contracts conditions. Subsequent to formation of
USSC and Unified Treasury Centre, the procedure for receipt, verification,
acceptance, custody, invocation and release of all BGs have been reviewed.

2.0 This circular aims at providing uniform guidelines regarding the procedure for
receipt, verification, acceptance, custody, invocation and release of BGs. These
guidelines are to be adhered to and strictly complied with by all concerned.

3.0 The BGs submitted by contractors may be classified into following four categories:

(a) BGs towards Bid Security/ EMD.

(b) BGs towards Initial/Interim/Mobilization/Equipment Advance.
(c) BGs towards Contract Performance Guarantee submitted by Contractors
and their collaborators / Associates
(d) Other BGs

4.0 BID SECURITY/ EARNEST MONEY DEPOSIT (EMD)

4.1 SUBMISSION OF BID SECURITY

4.1.1 The requirement for submission of Bid Security, its amount, manner of
submission and form of Bid Security shall be specified in all the Bidding
Documents/ Tender enquiries, except in cases where submission of Bid Security
is not required as brought out in Para 4.5 below.

4.1.2 Wherever the submission of Bid Security has been prescribed in the Bidding
Documents, the Bid must be accompanied by the Bid Security in a separate
envelope. The envelope must be clearly marked on top so as to evidence the
presence of bid security and suitable marking instructions to this effect may be
included in the bidding documents.

In case the Bid Security is deposited by the Bidder/ vendor at the tendering
portal, as applicable, bidder to submit the proof of e-payment of bid security
either in separate envelope or in the e-tendering portal.
4.1.3 In all detailed NITs/Tender enquiries published on the website, the following
clause may be included in Bold Capital Letters, where submission of Bid Security
has been prescribed in the bidding documents:

" ANY BID NOT ACCOMPANIED BY AN ACCEPTABLE BID SECURITY IN A

SEPARATE SEALED ENVELOPE SHALL BE REJECTED BY THE
EMPLOYER AS BEING NON-RESPONSIVE AND SHALL NOT BE OPENED.
IN CASE, THE BID SECURITY IS SUBMITTED THROUGH ELECTRONIC
FUND TRANSFER (EFT), BIDDER TO SUBMIT THE PROOF OF E-PAYMENT
OF BID SECURITY EITHER IN SEPARATE SEALED ENVELOPE OR IN THE
E-TENDERING PORTAL.”

4.1.4 The acceptability of the bid security shall be verified by the Tender Committee
or where Tender Committee is not applicable, the C&M Representative in
consultation with Finance, in line with Procedure prescribed in Para 6.1 and 6.2
below.

4.1.5 In case of Single Stage Single Envelope Bidding, at the time of bid opening,
initially the envelope containing the Bid Security shall be opened for all the
bidders and acceptability of the bid security shall be verified.

4.1.6 Where the Bids have been invited following Single Stage Two Envelope/Two
Stage Bidding procedures, at the time of opening of Technical Bids, the Bid
Security Envelope shall be initially opened for all the bidders and acceptability of
the bid security shall be verified. Further in case of Two Stage Bidding, at the
time of opening of Price Bids, the Envelope containing extension of Bid Security
shall be initially opened and its acceptability shall be verified.

The details regarding absence of bid security or bid security not being
acceptable in terms of the Bidding Documents shall be recorded in the Minutes
of the Bid Opening under the signature of the Tender Committee.

4.1.7 Signing of Minutes of Bid Opening will not be applicable in the following cases:

a) In case the bid security/EMD is not applicable.

b) In case the bids are invited on Online Portal and mode of all the bid
securities/EMDs is Electronic Fund Transfer (EFT).

In all other cases wherein Tender Committee is applicable, Minutes of Bid

Opening shall be signed by Tender Committee. For the cases where Tender
Committee is not applicable, Minutes of Bid opening shall be signed by C&M
and Finance executives.

In case a member of Tender Committee deputes its representative to attend the

Bid Opening, then Minutes of Bid Opening signed by the TC Representative
shall also be countersigned by the concerned Member of Tender Committee.

4.1.8 Notwithstanding the guidelines stated above in Para 4.1.1 to 4.1.7, in case of
Packages/ Procurements funded by Funding Agency, the specific Procedures
as agreed with the concerned funding agency in this regard shall be followed.
However, in absence of any requirements from the Funding Agency, the
 Procedure prescribed in Para 4.1.1 to 4.1.7 above shall be followed.

4.2 AMOUNT OF BID SECURITY

4.2.1 The amount of Bid Security shall be specified in Indian Rupees as brought out
below:

Cost Estimate in Rs. Bid security/ EMD

(Excluding Taxes and Duties) in Rs.
Up to 25 Lakh Nil
25 Lakh - 50 Lakh 50 Thousand
50 Lakh - 1 Cr 1 Lakh
1 Cr - 2.5 Cr 2 Lakh
2.5 Cr - 5 Cr 5 Lakh
5 Cr - 10 Cr 10 Lakh
10 Cr - 25 Cr 20 Lakh
25 Cr - 50 Cr 50 Lakh
50 Cr - 100 Cr 1 Cr
100 Cr - 250 Cr 2 Cr
250 Cr - 500 Cr 5 Cr
500 Cr - 1000 Cr 10 Cr
1000 Cr – 2500 Cr 20 Cr
2500 Cr - 5000 Cr 50 Cr
5000 Cr - 10000 Cr 100 Cr
≥ 10000 Cr 200 Cr

In order to reduce the number of bank guarantees to be handled, Bid security up to

Rs. 1,00,000/- (Rupees One Lac only) must be through Electronic Fund Transfer
(EFT). Necessary provisions in this respect shall be incorporated in the Bidding
Documents.

4.2.2 In case bids have been invited following ICB procedures and the bidders are
permitted to quote in foreign currency, bidders are allowed to submit bid security
either in Indian Rupees or equivalent US Dollars. The amount of Bid Security in
equivalent US Dollars shall be specified based on SBI Bills Selling Exchange
rate prevailing as on seven days prior to the date of proposal for approval of
bidding documents or date of proposal for approval of issuance of IFB/NIT,
rounded off to next higher multiple of hundred US Dollars.

4.2.3 For procurements through Government e-Marketplace (GeM):

The use of GeM Portal for Sale / Purchase of Goods / Services and the resulting
Contracts is governed by the General Terms and Conditions (GTC) of GeM.
Further, as per General terms and conditions of GeM, for Bid Security, the buyer
has option to select amount of Bid Security from 0.5% to 5%. In such case
wherever bid security is applicable, the Bid Security shall be 2%.
4.2.4 The standard clauses to be incorporated in the Bidding Documents shall be as
per details mentioned at Annexure-I.

4.3 For the package, where standard bidding documents are not available, provisions
for bid security may be incorporated in the bidding documents in line with this
Circular with the approval of the Competent Authority (Bid Document approval
Authority).

4.4 The prescribed formats of Bank Guarantee and extension of Bank Guarantee are
enclosed at Annexure-II and Annexure-III respectively. In order to facilitate the
Bidders to submit the Bank Guarantee as per the prescribed format and in line
with the requirements prescribed in the Bidding Documents, the Check List
enclosed at Annexure-IV may be made part of the Bidding Documents. The
Bidders may be advised to take note of the above Check List while submitting
Bank Guarantee as Bid Security.

4.5 Exemption from submission of Bid Security

In the following cases submission of Bid Security is not required:

Sl. Estimated Cost of Works/Purchases/

No. Category Services (excluding Taxes and Duties)
up to which Bid Security not required

1. All Tenders Rs. Twenty Five (25) Lakhs

2. Limited Tenders No Bid Security for the exemption limit as
specified in DOP
Tenders from OEM and OES or from No Bid Security irrespective of value
3. Vendors approved as per Source
Standardization Procedure
4. All Single Tender/Enquiries No Bid Security irrespective of value
5. Eligible Micro and Small Enterprises As per prevailing guidelines (System
(MSEs) Circular No. 96 dated 16.12.2013 of
Corporate Materials and its subsequent
amendments). In this case, ‘relevant
certificates of MSEs’ for availing EMD
exemption, in line with System Circular 796,
shall be submitted

5.0 RECEIPT OF BANK GUARANTEES

5.1 Except for the BGs towards Bid Security, which are required to be submitted by
the Bidders along with the Bids and the BGs issued by the banks outside India,
all other BGs should be received from the Bank directly through post/ courier,
by Unified Treasury, Dadri at below mentioned address:

Unified Treasury (BG Group)

Administrative Building, NCPS, Dadri
NTPC Limited,
 PO. Vidyut Nagar
Distt: Gautam Budh Nagar,
Uttar Pradesh- 201008.

A soft copy of the BG (other than BG towards Bid Security) is mandatorily

required to be mailed to Unified Treasury Group at ubg@ntpc.co.in by the
issuing Bank.

Upon receipt of BG, Unified Treasury, Dadri shall record the BG as “Conditional
Custody” and upload the scanned copy of the BG in the system and System
generated intimation will be provided to the “Concerned Executive” from:
(i) Corporate Contract (for Supply+ Erection/ Supply+ Erection+ Civil
package awarded by Corporate Contracts)
(ii) Contracts & Materials Deptt. at Corporate/ Projects/ Stations/ Regions/
SSCs/ USSC (for purchase cases awarded by them)
(iii) Execution department at Corporate / Project / Station / Offices etc. for
all other works/ services/ consultancy packages.

“Execution Department” shall hereinafter mean the department who is responsible

for execution of the Contract which is generally defined as EIC/ Project Manager in
PO/ Contracts. Further, in case of purchase, respective C&M department shall be
Execution Department.

While creating PO in SAP, the name and designation of EIC/ Project Manager
must be maintained by all the executives. In case of change of EIC/ Project
Manager during execution, the same shall be incorporated in the PO by way of
Amendment to PO. In case of Supply+ Erection/ Supply+ Erection+ Civil
packages awarded by Corporate Contracts, the EIC will be from CC&M
department till issuance of advance.

A Nodal officer shall be nominated by respective REDs, Functional EDs, Head

of USSC & HoP's for their respective areas preferably from P&S department.
Unified Treasury, Dadri will address all communications to concerned Nodal
officer and Concerned executive.

5.2 In order to utilize the secure messaging system of Bank for confirmation of all BGs
including Bid Security, a new clause shall be incorporated in the bidding documents
as follows:

QUOTE

Confirmation of BGs (including Bid Security) through Structured

Financial Messaging System (SFMS)/SWIFT

While issuing the physical BGs, the Bidder’s Bank shall also send electronic
message through secure SFMS (in case of BGs issued from within India) or SWIFT
(in case of BGs issued from outside India) to Employer’s Beneficiary Bank whose
details are provided herein below:
 (i) Bank Name: ICICI Bank Limited
(ii) Branch: CONNAUGHT PLACE BRANCH
(iii) Bank Address: 9A, PHELPS BUILDING, INNER CIRCLE,
NEW DELHI- 110001
(iv) IFSC Code: ICIC0000007

BG issuing/amending bank must send the BG advice in the form of message

format via SFMS (Structured Financial Messaging System) as provided by RBI.
The format of the message for confirmation of the BG shall be as below:

BG advising message: IFN 760COV/ IFN 767COV via SFMS

Field Number: Particulars (to be mentioned in Row 1)

7037: NTPCBG (unique identifier)

UNQUOTE

5.3 The above provisions shall be suitably incorporated in all tender documents to be
issued on/after the issuance of this Circular. Further, for all the packages where
any BG is yet to be received, Contractors/ Bidders shall be informed to submit the
same at Unified Treasury, Dadri.

6.0 VERIFICATION AND ACCEPTANCE OF BGs

6.1 Guidelines specific to Bid Security

6.1.1 In case of Bank Guarantees submitted towards Bid Security, the Tender Committee
(TC) shall verify the acceptability of the bank guarantee with respect to its value,
validity period and issuing bank. Further, the Tender Committee shall also prima-
facie verify whether there are any material deviations in the text of the BG with
reference to the specified format in the bidding documents.

6.1.2 In case the bank guarantee is not found acceptable by the TC, the same shall be
rejected and returned. Further, the bid of such party shall also be rejected.

If bank guarantee is prima-facie considered acceptable, further detailed

examination shall be carried out by TC at the time of bid evaluation in line with
the procedure prescribed in Para 6.2 below. The responsibility of acceptance/
rejection of the bid security shall vest with the TC.

For the cases where Tender Committee is not applicable, responsibility of

acceptance/ rejection of the bid security shall vest with the concerned C&M and
Finance executives.

6.2 Guidelines for all BGs

Upon receipt of a Bank Guarantee (towards Bid Security and BG issued by

foreign bank) or system generated intimation from UT, Dadri (for all other BGs),
the Concerned Executive shall examine the BG or scanned copy of the BG as
uploaded in the system and ensure compliance of the following:
6.2.1 The BG should be on Non-Judicial stamp paper/e-stamp paper of appropriate value
as per Stamp Act prevailing in the State(s) where the BG is submitted or is to be
acted upon or the rate prevailing in the State where the BG is executed, whichever
is higher. The appropriate value of stamp paper for BGs, in terms of the Stamp Act
for various States in India, shall be as circulated by Corporate Law Department from
time to time.

6.2.2 The date, purpose of purchase and name of the purchaser should be indicated on
the stamp paper. The stamp papers (other than e-stamp paper) should be duly
signed by the stamp vendor. The date of sale of the non-judicial stamp paper, as
indicated on the stamp paper should be of any date on or before the date of
execution of the BG. The name of the Purchaser of stamp paper may either be
the executing Bank or the party on whose behalf the BG is issued.

In certain States, the Rules permit levy of stamp duty by the process of franking
under signature of empowered officer. Such BG may also be accepted as duly
stamped.

6.2.3 The name and designation of the Officer of the Bank executing the BG and his
power of Attorney/ Signing Power No. should be duly indicated in the BG.

6.2.4 Each page of the BG should be duly signed/ initialed by the executants and Stamp
of the Bank is affixed thereon. The last page of BG should be signed with full
particulars including the name of authorized signatory, full postal addresses,
telephone number, Official Email Id etc. under the seal of the Bank as required as
per the prescribed proforma in the Bid documents.

All the BGs except BG against bid security should be valid up to the validity
period mentioned in the Bidding Documents and should be enforceable for
minimum ninety (90) days after expiry of its validity.

6.2.5 The BG should be compared verbatim with the Standard proforma of the Bank
Guarantee prescribed in the Bid Documents.

In case of any change in the contents or text of the BGs, which are of minor/
clerical in nature i.e. which in no way limits the rights of the Company in any
manner, the same may be accepted or rejected by the following:

(i) Concerned Group Head (not below the rank of AGM) in Corporate
Contracts (for Supply+ Erection/ Supply+ Erection+ Civil package
awarded by Corporate Contracts)
(ii) C&M Group Head (not below the rank of AGM) at Corporate/ Projects/
Stations/ Regions/SSCs/USSC (for purchase cases awarded by them)

(iii) HOD (not below the rank of AGM) of execution department at Project/
Station/ Corporate etc. (for all other works/ services/ consultancy
packages).

However, in case there are deviations in the text of the BG from the prescribed
text, which materially affect the right of the Company, the opinion of Law Deptt.
regarding acceptance/ rejection of such deviations may be obtained. In case
 opinion from the Law Department in writing is already available in respect of a
similar case, such deviations may be accepted/ rejected with the approval of
Competent Authority mentioned above, based on the aforesaid opinion.

6.2.6 The factual details such as Bid Document No., PO/ Notification of Award/ Contract
Agreement No., Contract Price, amount (both in words and figures) and validity of
the BG etc. should be in line with the provisions of Bid/ Contract Documents.

6.2.7 It may also be ensured that over-writings or cuttings, if any, have been properly
authenticated under the signature and seal of the executant.

6.2.8 A BG issued by a Bank outside India shall be directly received by concerned C&M
department. The BG also needs to bear stamp duty of appropriate value applicable
to the place in NTPC where BG is to be submitted. The BG shall be got adjudicated
by the Concerned C&M Executive in consultation with associated Law Deptt. This
has to be done within three (3) months from the date of arrival of the BG in India.
After adjudication the BG shall be forwarded to Unified Treasury, Dadri by the
concerned C&M executive.

Expenses incurred in this regard shall be adjusted from the payment due to the
contractor. In case of Bid Security, expenses incurred shall be borne by NTPC.
Suitable provisions in this regard shall be incorporated in the Bidding documents.

6.2.9 The BG should be issued by a Bank acceptable as per the provisions of Bid/
Contract Documents. However, in case the BG has been issued by a Foreign Bank
outside India other than those specified in the Bid/ Contract Documents, the same
should be confirmed by one of the Banks, acceptable as per Bid/ Contract
Documents.

6.3 Any change or modification, whenever agreed by NTPC, should be by means of

an amendment to the Bank Guarantee on non-judicial Stamp paper/e-stamp of
same value as that of the original BG. Such amendment shall be received directly
by Unified Treasury from the Bank through post/ courier.

6.4 Verification of BG from Bank

6.4.1 In case of BGs towards Bid Security, the Concerned C&M Executive, immediately
after opening of Bids shall forward the scanned copy of BG by email to the
respective Finance Department associated with C&M department, who shall verify
the genuineness of the BG as per procedure prescribed at Para 6.4.3 and Para
6.4.4 below. In cases where Bid security is not found to be genuine, the bid of such
Bidder shall be rejected, and action shall be taken as per relevant provisions of
bidding documents.

6.4.2 Except Bid Security, which shall be retained in original by concerned C&M
department, BGs received by Unified Treasury shall be scanned and uploaded in
the system and a system generated intimation shall be received by Nodal officer
and Concerned executive as per Para 5.1 above. The concerned executive shall
verify the BG details and digitally approve the same in the system as per the
checklist attached at Annexure - V along with copy of legal vetting (if applicable),
for further bank verification of the BG and the safe custody of the BG in Unified
 Treasury. The BG shall be digitally approved in the system by the executive not
below the rank of DGM.

6.4.3 On receipt of intimation of approval from concerned executive, the Dealing Finance
executive in Unified Treasury shall exercise required checks as a matter of internal
control. Further, Dealing Finance executive shall verify the receipt of SFMS/ SWIFT
message for such BG through Employer's Bank portal.

In case, SFMS/SWIFT message is not available on the said bank portal, an e-

mail shall be sent by the Dealing Finance Executive from its official E-mail ID
to the Employer’s Bank official’s E-mail ID seeking confirmation of receipt of
SFMS/SWIFT message of such BG. The Employer’s Bank will be required to
send the confirmation through their official E-mail ID to the official Email ID of
Dealing Finance executive. The confirmation from the Employer’s Bank shall
be treated as confirmation of BG. The Dealing Finance Executive shall keep
the record of confirmation of receipt of SFMS/SWIFT message of such BG by
uploading the scanned/ digital copy of the confirmation in the system against
the said BG.

6.4.4 In exceptional circumstances, where SFMS/ SWIFT messaging facility in the bank
for confirmation of BG is not functioning, verification of BGs may be carried out as
per the procedure mentioned below:

(i) A letter of confirmation as per proforma enclosed (Annexure-VI) shall be

addressed by the Dealing Finance Executive through official e-mail (or in
duplicate by Registered Post/ Speed Post) to the executant of the Bank
Guarantee seeking confirmation whether the Bank Guarantee has been
executed by the executant and whether he is duly authorized to do so. The
Executant Bank will be required to certify the genuineness of BG through
official e-mail/ registered post/ speed post.

(ii) The Dealing Finance Executive may also ask Centralized BG Confirmation
Branch of the executant bank, if any, to confirm whether the Bank Guarantee
has been executed by the executant and whether he is duly authorized to do
so. In exceptional cases UT, Dadri may depute its executive to physically visit
the executant bank for BG verification.

(iii) In case of BGs issued by a Foreign Bank outside India acceptable to NTPC
as per Bid/ Contract Documents (other than Bid Security), the BG must be
verified by the UT, Dadri through the Correspondent Bank (of such Foreign
Bank) in India. However, for Foreign Bank not acceptable to NTPC, the
verification through concerned counter signing Bank (which is acceptable to
NTPC) should be obtained by UT, Dadri.

The Dealing Finance Executive shall ensure that the BGs are verified at the
earliest without any delay.

6.4.5 In case of BGs received on behalf of Central Public Sector Undertakings, the
verification of BGs need not be carried out.
7.0 CUSTODY AND MAINTENANCE OF BGs

7.1 In case of Bank Guarantee towards Bid Security submitted by the Bidders along
with the Bid, the concerned C&M executive shall be responsible for safe custody/
monitoring of such BGs.

7.2 All other BGs, received at UT, Dadri, shall be retained and monitored by the Unified
Treasury, Dadri.

7.2.1 The BG shall be kept under safe custody by the Head of Unified Treasury, Dadri. If
necessary, authorization may be given to officer(s) under him to keep the Guarantee
in safe custody, subject to his control and supervision. The same should be kept in
fire-proof almirah.

7.2.2 In order to facilitate proper recording and monitoring the validity of BGs, record of all
the BGs shall be maintained online in SAP-ERP system by Unified treasury, Dadri.

7.2.3 The Authorized Officer in Unified Treasury, Dadri shall review the BG List maintained
in SAP-ERP every month and initiate action of ascertaining from concerned
Department, at least three (3) months in advance of the expiry of the validity of the
Bank Guarantee, whether the BG needs to be extended / released or invoked. It
may be important to note that the Bankers are not obliged to make payment after the
date of expiry of the validity/claim period of the Bank Guarantee. Hence, timely action
for extension/ invocation of the Bank Guarantee, wherever required, is essential.

8.0 EXTENSION / INVOCATION OF BANK GUARANTEES (BGs)

8.1 In respect of BGs towards Bid Security, the concerned C&M executive shall be
responsible for seeking extension of BG, whenever required. In case a need arises
to invoke the BG towards Bid Security, the concerned C&M executive shall obtain
approval of the Competent Authority (as defined in para 8.6 below) and shall take
necessary action for invocation of BG including issue & delivery of Invocation Letter,
receipt of amount etc. The concerned C&M executive, while seeking approval of
Competent Authority for invocation of BG, shall also simultaneously obtain approval
for filing caveat petition under Section 148A of CPC in consultation with associated
Law Department in the court of competent jurisdiction so that the bidder may not be
able to obtain ex-parte injunction order.

Further, in cases where bid security has been received through EFT, and if a need
arises to forfeit the said bid security amount, the concerned C&M executive in such
case shall obtain approval of the Competent Authority (as defined in Para 8.6 below).

8.2 In respect of all other BGs maintained at UT, Dadri, a list of all BGs expiring within
next three (3) months shall be prepared by the UT, Dadri and forwarded by tenth
day (10th) of every month to the concerned Nodal Officers and concerned HOD/GM
of Execution Department.
The above list of BGs should clearly indicate BGs expiring during current month,
and during next two (2) months period.

8.3 Based on such list of BGs, if the status of supply/ work warrants further extension
of the validity of BG, the execution department shall initiate action for obtaining/
 procuring suitable extension of BG from the Contractor. Extension of BG should be
on Stamp paper of same value as that of the original BG. Minimum extension of
any BG should be three months. A copy of the communication by the execution
department to the Contractor regarding extension of BGs shall also be sent to
Unified Treasury, Dadri at least sixty (60) days before the expiry of the validity of
BG.

8.4 Unified Treasury, Dadri shall also lodge a conditional claim as per the prescribed
format enclosed (Annexure-VII), thirty (30) days prior to the date of expiry of the
validity of BG. A copy of such claim letter shall also be forwarded to concerned
HOD/ GM of executing department. The conditional claims shall be followed up by
the Unified Treasury and a reminder shall be sent to the concerned bank fifteen
(15) days prior to expiry of the validity of BG.

8.5 In case, no intimation is received from the concerned Execution Department even
thirty (30) days before the expiry of the validity period of BG, Unified Treasury,
Dadri shall put up an exception report to concerned REDs/ Functional EDs/ Head
of USSC/ Head of Project or Station/ Nodal Officer. Concerned REDs/ Functional
EDs/ Head of USSC shall discuss the exception Report with the concerned HOPs/
HODs. The concerned Execution Department shall ensure that no BG is allowed
to lapse other than in cases where the BG is to be released.

8.6 Based on such review at para 8.5 above, concerned Execution Department shall
initiate action for seeking approval of Competent Authority for invocation, wherever
decided. The Competent Authority for approval of invocation of Bank Guarantee
shall be as follows:

Sl. Award Approving Authority Competent Authority for approval of invocation

No. of Bank Guarantee
(i) Beyond ED as per DOP. Concerned Regional Executive Director/ Functional
Executive Director
(ii) Up to ED as per DOP. HOD/ HOP of execution department not below the
rank of GM.

8.7 While initiating the proposal for invocation of BG, the approval for filing caveat
petition under Section 148A of CPC, in the court of competent jurisdiction, wherever
required, shall also be taken by the concern execution department in association
with associated legal department to prevent the party from obtaining an ex-parte
stay order against NTPC for invocation of BG. The Concerned execution
department, after obtaining approval of Competent Authority for invocation, shall
advise the Unified Treasury, Dadri for invocation of the BG(s) positively within seven
(7) days prior to the expiry of validity of the BG, so as to enable Unified Treasury,
Dadri to lodge a formal claim for invocation of BG and ensure receipt of money
before the expiry of the BG.

However, in case the extension to the BG has been furnished by the Bank before
seven days of the expiry of BG, Unified Treasury, Dadri shall not pursue the claim
for receipt of payment.

8.8 The BG Invocation Letter as per sample enclosed (Annexure-VIII) duly signed by
the “Authorized Signatory”, along with the original Bank Guarantee, shall be handed
 over physically by Unified Treasury, Dadri to the Branch Manager of the Bank
which has issued the Bank Guarantee or to the Branch Manager of any other
branch in NCR region which is identified/ earmarked by the Bank for lodging the
claim. A copy of the letter shall also be sent by Registered/ Speed A.D. post to the
Head Office of the concerned bank. The delivery of BG Invocation Letter and
original BG to the concerned bank should be ensured against proper
acknowledgement well in advance before the expiry of its validity. In case of an
unconditional BG (as prescribed in the Bid Documents), mere demand to Bank
through BG Invocation Letter is sufficient. However, to avoid legal complications,
the invocation of such bank guarantees should also be resorted to by a mode
mentioned above (i.e. Invocation Letter along with original BG).

If any Bank refuses to make payment, the concerned HOP/HOD of execution

department shall be informed accordingly by Unified Treasury, Dadri.

8.9 The “AUTHORIZED SIGNATORY” for the purpose of signing the Bank Guarantee
Invocation Letter shall be AGM or above of Unified Treasury, Dadri.

8.10 In order to safeguard the interest of NTPC, if the Bank Guarantee issuing Bank is
avoiding/ refusing to honor its contractual obligations and liabilities under the terms
of BG, the matter should be taken up by GM(Finance)/ ED(Finance)/ Head of
Project or Station/ ED (Region) with the highest authority of the concerned Bank,
both at the issuing Branch as well as the Head Office, and with the Reserve Bank
of India whose guidelines on the subject are mandatory in nature and every bank
has necessarily to comply with them.

8.11 In the event of Bank’s ultimate failure to honor its commitment according to the
terms of the Bank guarantee in letter and spirit, Unified Treasury, Dadri as a last
resort shall put up proposal for seeking permission of the Competent Authority for
filing suit/ writ petition as the case may be against the Bank in the Court of
Competent Jurisdiction, well within the period of limitation. The Competent Authority
for approval of such proposal shall be as under:

Competent Authority
1) In case Board or Sub Committee : CMD
of the Board is the authority competent to
award the Contract

2) In cases where the Contract was : ED (Fin.)

awarded by the authorities below the
level of Board or Sub-Committee
of the Board as per DOP

For initiating any legal action against Public Sector Bank, Unified Treasury, Dadri
shall take action in consultation with Corporate Legal Department.

8.12 These court cases should be thoroughly prepared by Unified Treasury, Dadri in
consultation with Corporate Legal Department and other Local Advocates
supported by documentary and oral evidence. The same should also be effectively
followed up in the court proceedings. Wherever required, the affidavit may be filed
by HOP/ HODs of the execution department after seeking necessary details from
 UT, Dadri. The authorized officer for signing the affidavits should not be below the
rank of AGM.

8.13 It should be ensured that under no circumstances the period of limitation for taking
legal action under the Bank Guarantee is allowed to lapse. The period of limitation
prescribed under the Limitation Act is three (3) years from the date of cause of
action arising in terms of the Bank Guarantee.

8.14 Invocation of BG of Public Sector Enterprises (PSEs)/ Govt. Deptt.

Deptt. of Public Enterprises (DPE), Ministry of Industry vide their Office

Memorandum no. 4 (1)/2011-DPE (PMA)-GI dated 12.06.2013 & 24.03.2014
(copies enclosed at Annexure-IX) have advised that invocation of Bank
Guarantees furnished by PSEs should be done as a last resort when efforts to
resolve the differences/ disputes failed and that too after giving due notice/
information to the concerned PSEs.

In view of the above, it has been decided that in case of all Contracts entered into
by NTPC with PSEs, in the event it becomes necessary for effecting invocation of
any Bank Guarantee under the Contract, notice of default under relevant provisions
of the Contract must be given to the concerned PSE before effecting encashment
of the Guarantee. Such period of notice shall be thirty (30) days.

9.0 RELEASE/ RETURN OF BANK GUARANTEES (BGs)

9.1 RETURN OF BID SECURITY/EMD

9.1.1 In case of Single Stage Single Envelope bidding process, the Bid Security of
all the bidders except recommended/ evaluated L-1 bidder shall be returned
immediately after finalization of evaluation report/ recommendations by the
Tender Committee (TC) whether the recommendation of TC is for award
/negotiation /annulment.

In case of Single Stage Two Envelope and Two Stage bidding process, the
Bid Security of the Bidders whose Technical Bids has not been found
acceptable, shall be returned along with letter communicating rejection of
Technical Bid. The Bid Security of all the Bidders except recommended
/Evaluated L-1 bidder, whose price bids are opened, shall be returned
immediately after finalization of evaluation report/ recommendations by the
Tender Committee (TC) whether the recommendation of TC is for award/
negotiation/ annulment.

An intimation in this regard shall also be sent to all such bidders, after return of
their Bid Security by the concerned C&M executive.

9.1.2 The Bid Security of the Successful Bidder on whom the award is placed will be
returned when such Bidder has furnished the required Contract Performance
Guarantee (CPG)/ Security Deposit (as applicable).

9.1.3 In exceptional cases where the extension of Bid validity is sought from the
bidders due to delay in award of Contract, and if a bidder does not extend/ refuse
 to extend the bid validity, Bid Security of such bidder shall be returned
immediately.

9.1.4 The Concerned C&M Executive will be responsible for the prompt return of Bid
Security on fulfillment of the conditions mentioned at Para 9.1.1, 9.1.2 and 9.1.3
above.

9.2 RETURN OF ALL OTHER BGs INCLUDING CPGs

All other BGs should be released on their expiry [including extension of validity
period, if any] and after receipt of approval of Competent Authority in consultation
with concerned Payment group. The competent authority for release of BGs shall
be HOP/ HOD of execution department not below the rank of GM.

The BGs on their release shall be returned by the Unified Treasury, Dadri to the
issuing Bank based on the approval from competent authority with system
generated intimation to Executive from concerned execution department.
However, before returning such BGs, the contract closing procedures should be
strictly adhered.

10.0 MONITORING MECHANISM

10.1 MONITORING OF BGs ALREADY EXPIRED/EXPIRING WITHIN THREE

MONTHS

The Unified Treasury shall prepare a list of all expired BGs in the first week of
every month and forward the same to Concerned Execution Department/ Nodal
officer for their review and advice. The approval for release of BGs shall be taken
promptly by the concerned execution department from the competent authority
mentioned at Para 9.2 above. In case no advice is received from Concerned
Execution Department/ Nodal officer within one month of issue of such list, Unified
treasury, Dadri shall put up the details to REDs/Functional EDs/Head of
USSC/Head of the concerned Project or Station, as the case may be, for a suitable
decision. REDs/Functional EDs/Head of USSC/Head of the concerned Project or
Station shall ensure that a decision regarding release of the BGs is taken within
the next 15 days in respect of BGs pertaining to their department. All cases of
expired BGs shall also be discussed with Unified treasury on monthly basis to be
taken by the RED/ ED(Finance)/ ED (Region) Head of USSC/ Head of the Project
or Station. In case no advice is received by Unified treasury, the original expired
BG shall be forwarded to Concerned Execution Department/ Nodal officer for
taking further necessary action in the matter.

10.2 MONITORING OF RELEASE OF BID SECURITY

The release of Bid Security shall be monitored by GM of concerned C&M

department on quarterly basis for their respective areas and an exception report
on the delay, if any, shall be put up to concerned functional ED/ RED for their
review and action.
11.0 In respect of Contracts awarded for Multiple projects/ Stations, concerned
Contracts & Material department shall be responsible for Acceptance, Monitoring
and Release of Bank Guarantees.

12.0 This issues with the approval of Competent Authority for implementation by all
concerned. With the issuance of this circular, the earlier Circular no. 806 dated
25.05.2020 stand superseded.

PRAWEEN Digitally signed by

PRAWEEN KUMAR
KUMAR SINGH
Date: 2021.12.31
SINGH 13:26:29 +05'30'

(Praween K Singh)
GM(CS-P&S)

Enclosures:

Annexure- I: Standard Clauses to be incorporated in the Bidding Document

Annexure- II: Bid Security Form
Annexure- IIA: Performance Security Form
Annexure-III: Form of Extension of Bank Guarantee
Annexure-IV: CheckList of BG
Annexure-V: Bank Guarantee Verification / Acceptance Report
Annexure-VI: Letter for verification of Bank Guarantee.
Annexure-VII: Proforma for Lodging Conditional Claims under the Bank Guarantee
Annexure-VIII: Proforma for Invocation of Bank Guarantee
Annexure-IX: Copies of DPE OMs dated 12.06.2013 & 24.03.2014
 Annexure-I

STANDARD CLAUSES TO BE INCORPORATED IN BIDDING DOCUMENTS

I. FOLLOWING PROVISIONS TO BE INCORPORATED IN INSTRUCTIONS TO BIDDERS (ITB):

1.0 Bid Security

1.1 The Bidder shall furnish, as part of its Bid, a Bid Security in a separate sealed envelope for
the amount and currency as stipulated in the Bid Data Sheet (BDS). In case bid security
amount is deposited as EFT, Proof of e-payment of Bid Security, shall be submitted in the
e-tendering portal or in a separate sealed envelope.

1.2 The Bid Security shall, at the Bidder's option, be in the form of Electronic Fund Transfer
(EFT)/ irrevocable Letter of Credit or a bank guarantee from any of the banks specified in
the Bid Data Sheets.
For the Bid Security amount up to Rs. 1,00,000/- (Rupees One Lacs only), the Bidders must
submit the Bid Security amount through Electronic Fund Transfer (EFT) only.

Upon successful e-payment of the Bid Security on the NTPC e-tender portal, an e­receipt
shall be generated by the system, a copy of which is to be submitted by the bidder as a part
of its bid, in the e-tendering portal or in a separate sealed envelope, as a proof of e-payment
of Bid Security.

In case of Foreign Bidders, the Bid Security can be from any other Bank also in addition to
the Banks specified in the Bid Data Sheets. If the Bank Guarantee is from a Bank not
specified in the Bid Data Sheets, then the Bank Guarantee shall be confirmed by any of the
Banks specified in the Bid Data Sheets. (Applicable for ICB Tenders)

The format of the Bank Guarantee shall be in accordance with the form of bank guarantee
towards bid security included in the Bidding Documents. Bid Security shall remain valid for
a period of forty-five (45) days beyond the original Bid validity period and beyond any
extension of bid validity subsequently requested under relevant clause of ITB.

1.3 Wherever Bids under Joint Venture route are permitted as per the Qualifying Requirements
in the Bidding Documents, the Bid Security by the Joint Venture must be on behalf of all
the partners of the Joint Venture.

1.4 Any bid not accompanied by an acceptable bid security in a separate sealed
envelope shall be rejected by the employer as being non-responsive and shall not
be opened. In case, the bid security is submitted as EFT, bidder to submit the proof
of e-payment of bid security either in separate sealed envelope or in the e-tendering
portal. Further Stage-II (Price Bid) (in case of Two Stage bidding) not accompanied
by requisite bid security extension (in case Bid Security is submitted in the form of
BG) in a separate sealed envelope shall be rejected by the Employer as being non-
responsive and shall not be opened.
1.5 BG against Bid Security issued by a Bank outside India needs to bear stamp duty of
appropriate value applicable to the place in NTPC where BG is to be submitted. The BG may
be got adjudicated by the employer from Collector of Stamps, within 3 months of arrival of BG
in India. Expenses incurred in this regard shall be borne by NTPC.

1.6 Subject to clause 1.8 below, the Bid Security of the Bidder whose Techno-Commercial Bid
has not been found acceptable, shall be returned along with letter communicating rejection
of Techno-Commercial Bid. The Bid Security of the bidders who are unsuccessful after
opening of Price Bids shall be returned expeditiously.

1.7 The Bid Security of the successful Bidder to whom the contract is awarded will be returned
when the said Bidder has signed the Contract Agreement and has furnished the required
Performance Securities pursuant to relevant clauses of ITB.

1.8 The Bid Security may be forfeited

a) If the Bidder withdraws or varies its Bid during the period of Bid validity;

b) If the Bidder does not accept the correction of its Bid Price pursuant to ITB Sub-
Clause for Arithmetical Correction.

c) If the Bidder refuses to withdraw, without any cost to the Employer, any deviation,
variation, additional condition or any other mention anywhere in the bid (Price bid in case
of Two Stage Bid), contrary to the provisions of bidding documents;

d) In the case of a successful Bidder, if the Bidder fails within the specified time limit to
furnish the required Contract Performance Guarantee/Security Deposit in accordance
with relevant clause of ITB.

e) If the bidder/his representatives commits any fraud while competing for this contract
pursuant to Fraud Prevention Policy of NTPC.

(f) In case the Bidder/Contractor is disqualified from bidding process in terms of Section
3 and 4 of Integrity Pact (IF APPLICABLE).

1.9 CONFIRMATION OF BGS THROUGH STRUCTURED FINANCIAL MESSAGING SYSTEM (SFMS)/

SWIFT

While issuing the physical BGs, the Bidder’s Bank shall also send electronic message through
secure SFMS (in case of BGs issued from within India) or SWIFT (in case of BGs issued from
outside India) to Employer’s Beneficiary Bank whose details are provided herein below:

(i) Bank Name: ICICI Bank Limited

(ii) Branch: CONNAUGHT PLACE BRANCH
(iii) Bank Address: 9A, PHELPS BUILDING, INNER CIRCLE,
NEW DELHI-110001
(iv) IFSC Code: ICIC0000007

BG issuing/amending bank must send the BG advice in the form of message format via SFMS
(Structured Financial Messaging System) as provided by RBI. The format of the message for
 confirmation of the BG shall be as below:

BG advising message: IFN 760COV/ IFN 767COV via SFMS

Field Number: Particulars (to be mentioned in Row 1)

7037: NTPCBG (unique identifier)

II. FOLLOWING PROVISIONS TO BE INCORPORATED IN BID DATA SHEET (BDS)

1.0 Bid Security

a) Amount of Bid Security : INR …….. (Indian Rupees ……………. only) or

USD
………. (US Dollar ....... Only)*.

* BID SECURITY IN USD IS APPLICABLE IN CASE OF ICB TENDERS ONLY.

III. FOLLOWING PROVISIONS TO BE INCORPORATED IN SPECIAL CONDITION OF CONTRACTS

(SCC)

1.0 Following provision shall be included in reference to GCC clause 13:

a) All BGs except BG issued by a Bank outside India, shall be received from issuing Bank
directly through post/ courier, by Unified Treasury, Dadri at below mentioned address:

Unified Treasury (BG Group)

Administrative Building, NCPS, Dadri
NTPC Limited,
PO. Vidyut Nagar
Distt: Gautam Budh Nagar,
Uttar Pradesh- 201008

A BG issued by a Bank outside India needs to be submitted by the Bidder directly to the
employer as defined in BDS. The BG also needs to bear stamp duty of appropriate value
applicable to the place in NTPC where BG is to be submitted. The BG may be got
adjudicated by the employer from Collector of Stamps, within 3 months of arrival of BG in
India. Expenses incurred in this regard shall be adjusted from the payment due to the
contractor.

b) A soft copy of the BG is mandatorily required to be mailed to Unified Treasury Group

at ubg@ntpc.co.in by the issuing Bank.

c) Confirmation of BGs through Structured Financial Messaging System

(SFMS)/SWIFT
 While issuing the physical BGs, the Bidder’s Bank shall also send electronic message
through secure SFMS (in case of BGs issued from within India) or SWIFT (in case of
BGs issued from outside India) to Employer’s Beneficiary Bank whose details are
provided herein below:

(i) Bank Name: ICICI Bank Limited

(ii) Branch: CONNAUGHT PLACE BRANCH
(iii) Bank Address: 9A, PHELPS BUILDING, INNER CIRCLE,
NEW DELHI- 110001
(iv) IFSC Code: ICIC0000007

BG issuing/amending bank must send the BG advice in the form of message format via
SFMS (Structured Financial Messaging System) as provided by RBI. The format of the
message for confirmation of the BG shall be as below:

BG advising message: IFN 760COV/ IFN 767COV via SFMS

Field Number: Particulars (to be mentioned in Row 1)

7037: NTPCBG (unique identifier)

d) All Bank Guarantees should be enforceable for minimum ninety (90 days) after expiry
of its validity.
e) Extension of all BGs should be on Stamp paper of same value as that of the original
BG. Minimum extension of any BG should be three months.
 Annexure-II
Form of Bank Guarantee towards Bid Security

Bank Guarantee No. ........................

Date..................................................

To :

NTPC Ltd.
[Employer's Name and Address]

Dear Sirs,

In accordance with Invitation for Bids under your Bid Document No ........................... , M/s
.................................(***)...................................... having its Registered/Head Office at
……………………………….hereafter called the 'Bidder') wish to participate in the said bid
for [Name of Package]..........................................................................

As an irrevocable bank guarantee against Bid Security for an amount of

............................(*)...........................................valid for ............................................... days
from..................................................(**)........................................required to be submitted
by the Bidder as a condition precedent for participation in the said bid which amount is
liable to be forfeited on the happening of any contingencies mentioned in the Bidding
Documents.

We, the ............................................................................................[Name & address of

the Bank]…................................................................................having our Head Office
at…..................................(#)................................................guarantee and undertake to
pay immediately on demand by.....................................[Name of the Employer]
(hereinafter called the ‘Employer’)................................................the amount of
............................................(*) ........................................ without any reservation,
protest, demand and recourse. Any such demand made by the 'Employer' shall be
conclusive and binding on us irrespective of any dispute or difference raised by the Bidder.

This Guarantee shall be irrevocable and shall remain valid upto ...............(@) ............ If
any further extension of this guarantee is required, the same shall be extended to such
required period (not exceeding one year) on receiving instructions from
M/s.........(***)…….............[Bidder's Name]....................... on whose behalf this guarantee
is issued.
In witness whereof the Bank, through its authorised officer, has set its hand and stamp on
this..............................................................day of..................................20..........at.........

....................................................................
(Signature)

...................................................................
(Name)
.....................................................................
(Designation with Bank Stamp)

Authorised Vide
Power of Attorney No................................
Date............................................................

NOTE : 1. (*) The amount shall be as specified in the bidding documents.

(**)This shall be the date of opening of bids.

(#) Complete mailing address of the Head Office of the Bank to be given.

(@) This date shall be forty five (45) days beyond the validity of bid.

(***) Write the name and addresses of all the Joint Venture partners, in case the
bid is submitted by a Joint Venture in terms of Qualifying Requirements.

2. The Bank Guarantee (BG) shall be from a Bank as per provisions of the bidding
documents.

3. The BG should be on Non-Judicial stamp paper/e-stamp paper of appropriate value

as per Stamp Act prevailing in the State(s) where the BG is submitted or is to be acted
upon or the rate prevailing in the State where the BG is executed, whichever is higher.
The Stamp Paper/e-Stamp paper shall be purchased in the name of Bidder/Bank
issuing the guarantee.

4. While getting the Bank Guarantee issued, Bidders are required to ensure
compliance to the points mentioned in Bank Guarantee Verification Check List in
the bidding documents. Bidders are required to fill up this Check List and enclose
the same along with the Bank Guarantee.

5. In case, Bank Guarantee is getting issued from State Bank of India, Bidder to take
note of NTPC letter ref. NTPC/FC/CS/BG/01 dated 03.09.2014 and SBI letter ref.
CAG-I/AMT-1/2014-15/370 dated 04.09.2014 (attached with Section-III of Bidding
Documents.

.
 Annexure-IIA

Form of Bank Guarantee towards Performance Security

(To be suitably incorporated by concerned package coordinator)

Bank Guarantee No.............

Date......................................
To,
[Employer's Name & Address]

Dear Sirs,

In consideration of the ................................ [Employer's Name] ........................ (hereinafter referred to as

the ‘Employer’ which expression shall unless repugnant to the context or meaning thereof, include its
successors, administrators and assigns) having awarded to M/s.................... [Contractor's
Name]............................ with its Registered /Head Office at ............................ (hereinafter referred to as
the ‘Contractor’, which expression shall unless repugnant to the context or meaning thereof, include its
successors administrators, executors and assigns), a Contract by issue of Employer’s Notification of
Award No. ................ dated........... and the same having been unequivocally accepted by the contractor,
resulting into a Contract bearing No.............. dated ........... valued at ................... for ......................... and
the Contractor having agreed to provide a Contract Performance Guarantee for the faithful performance
of the entire Contract equivalent to ..........(*)..........% (.......... percent) of the said value of the Contract to
the Employer.

We ................[Name & Address of the Bank].................having its Head Office at

...........................(hereinafter referred to as the ‘Bank’, which expression shall, unless repugnant to the
context or meaning thereof, include its successors, administrators, executors and assigns) do hereby
guarantee and undertake to pay the Employer, on demand any and all monies payable by the Contractor
to the extent of ..................(*).................... as aforesaid at any time up to .........................(@)......................
[days/month/year] without any demur, reservation, contest, recourse or protest and/or without any
reference to the Contractor. Any such demand made by the Employer on the Bank shall be conclusive
and binding notwithstanding any difference between the Employer and the Contractor or any dispute
pending before any Court, Tribunal, Arbitrator or any other authority. The Bank undertakes not to revoke
this guarantee during its currency without previous consent of the Employer and further agrees that the
guarantee herein contained shall be enforceable till ninety (90) days after expiry of its validity.

The Employer shall have the fullest liberty, without affecting in any way the liability of the Bank under this
guarantee, from time to time to extend the time for performance of the Contract by the Contractor. The
Employer shall have the fullest liberty, without affecting this guarantee, to postpone from time to time the
exercise of any powers vested in them or of any right which they might have against the Contractor, and
to exercise the same at any time in any manner, and either to enforce or to forbear to enforce any
covenants, contained or implied, in the Contract between the Employer and the Contractor or any other
course or remedy or security available to the Employer. The Bank shall not be released of its obligations
under these presents by any exercise by the Employer of its liberty with reference to the matters aforesaid
or any of them or by reason of any other act or forbearance or other acts of omission or commission on
the part of the Employer or any other indulgence shown by the Employer or by any other matter or thing
whatsoever which under law would, but for this provision, have the effect of relieving the Bank.
 The Bank also agrees that the Employer at its option shall be entitled to enforce this Guarantee against
the Bank as a principal debtor, in the first instance without proceeding against the Contractor and
notwithstanding any security or other guarantee that the Employer may have in relation to the Contractor’s
liabilities.

Notwithstanding anything contained hereinabove our liability under this guarantee is restricted to
.........................(*)......................... and it shall remain in force upto and including
.....................(@)...................... and shall be extended from time to time for such period (not exceeding
one year), as may be desired by M/s .......[Contractor's Name}............ on whose behalf this guarantee
has been given.

Dated this ............................. day of .................... 20.................. at...........................................

..........................................................
(Signature)

..........................................................
(Name)

..........................................................
(Designation with Bank Stamp)

Authorised Vide Power of

Attorney No.......................................

Date...................................................

Notes :1. (*) This sum shall be ten percent (10%) of the Contract Price.

(@) This date will be ninety (90) days beyond the Defect liability period as specified in the
Contract.

2. The Bank Guarantee shall be from a Bank as per provisions of the Bidding Documents.

3. The BG should be on Non-Judicial stamp paper/e-stamp paper of appropriate value as per

Stamp Act prevailing in the state(s) where the BG is submitted or is to be acted upon or the rate
prevailing in State where the BG is executed, whichever is higher. The Stamp Paper/e-stamp
paper shall be purchased in the name of Bidder/Bank issuing the guarantee.

4. While getting the Bank Guarantee issued, the Contractor is required to ensure compliance to
the points mentioned in Form of Bank Guarantee Verification Check List. Further, the Contractor
is required to fill up this Form and enclose the same with the Bank Guarantee.

5. In case, Bank Guarantee is getting issued from State Bank of India, Bidder to take note of NTPC
letter ref. NTPC/FC/CS/BG/01 dated 03.09.2014 and SBI letter ref. CAG-I/AMT-1/2014-15/370
dated 04.09.2014 (attached with Section-III of Bidding Documents.
 Annexure-III

FORM OF EXTENSION OF BANK GUARANTEE

Ref.No.: Date:
@

Dear Sirs,

Subject : Extension of Bank Guarantee No. dated for …..[indicate

value of bank guarantee]………………….favouring yourselves expiring on
on account of M/s……………… (Name of Bidder)…………….in respect of Contract for
(Insert Package name) (Insert Project Name) project,
Contract No. dated
(hereinafter called original Bank Guarantee)

At the request of M/s we Bank branch

office at and having its Head office at do

hereby extend our liability under the above mentioned guarantee No.
dated for a further period of year/months from
to expire on .

Except as provided above, all other terms and conditions of original Bank Guarantee
No. dated shall remain unaltered and binding.

Please treat this as an integral part of the original guarantee to which it would be deemed
to have been attached.
………………………….
(Signature)
………………………….
(Name)
…………………………..
(Designation with Bank Stamp)

Authorised vide
Power of Attorney No…..
Date……………………
Dated

SEAL OF BANK
Note:
1. @ The extension of the Bank Guarantee should be forwarded to the
Unit/ Project/Corporate Centre, from where the extension has been sought.

2. The extension of BG should be on Non-Judicial stamp paper/e-stamp paper of appropriate

value as per Stamp Act prevailing in the State(s) where the BG is submitted or is to be
acted upon or the rate prevailing in the State where the BG is executed, whichever is
higher. The Stamp Paper/e-Stamp paper shall be purchased in the name of
Bidder/Bank issuing the guarantee.
 Annexure-IV
CHECKLIST

Sl. No. Details of checks YES / NO

1 Is the BG on non-judicial stamp paper/e-stamp paper of
appropriate value, as per Stamp Act?
2 Whether date, purpose of purchase and name of the
purchaser are indicated on the stamp paper? (The date
of purchase of stamp paper should be of any date on or
before the date of execution of BG and the stamp paper
should be purchased either in the name of the executing
Bank or the party on whose behalf the BG has been
issued. The stamp papers (other than e-stamp paper)
should be duly signed by the stamp vendor.)
3 In case of BGs from Banks abroad, has the BG been
executed on Letter Head of the Bank?
4 Has the executing Officer of BG indicated his name,
designation and Power of Attorney No./ Signing Power
no. etc., on the BG?
5 Is each page of BG duly signed /initialed by executant and
whether stamp of Bank is affixed thereon? Whether the
last page is signed with full particulars under seal of
Bank as required in the prescribed proforma?
6 Does the Bank Guarantees compare verbatim with the
Proforma prescribed in the Bid Documents?
7 Are the factual details such as Bidding Document
No./Specification No., Amount of BG and Validity of BG
correctly mentioned in the BG?
8 Whether overwriting/cutting if any on the BG have been
properly authenticated under signature & seal of
executant?
9 Whether the BG has been issued by a Bank in line with
the provisions of Bidding documents?
10 In case BG has been issued by a Bank other than those
specified in Bidding Document, is the BG confirmed by a
Bank in India acceptable as per Bidding documents?
 ANNEXURE-V

NTPC LIMITED

BANK GUARANTEE VERITIFICATION/ACCEPTANCE REPORT

1. Bank Guarantee No.

2. Issuing Bank
3. Amount of BG
4. Nature of BG & No of Pages
5. Validity of BG
6. Package Description
7. Party & Contracts ref. Name, Address, Tel, Fax, E-mail
8. Bank Reference Name, Address, Tel, Fax, E-mail

CHECK LIST

Sl. No. Details of checks YES / NO

a) Is the BG on non-judicial stamp paper/e-stamp paper of
appropriate value, as per Stamp Act?
b) Whether date, purpose of purchase and name of the
purchaser are indicated on the stamp paper? (The date
of purchase of stamp paper should be of any date on or
before the date of execution of BG and the stamp paper
should be purchased either in the name of the executing
Bank or the party on whose behalf the BG has been
issued. The stamp papers (other than e-stamp paper)
should be duly signed by the stamp vendor.)
c) In case the BG has been executed on Letter Head of the
Bank, whether adhesive Stamp of appropriate value has
been affixed thereon?
d) Has the executing Officer of BG indicated his name,
designation and Power of Attorney No./ Signing Power
no. etc., on the BG?
e) Is each page of BG duly signed /initialed by executant
and whether stamp of Bank is affixed thereon? Whether
the last page is signed with full particulars under seal of
Bank as required in the prescribed proforma?
f) Does the Bank Guarantees compare verbatim with the
Proforma prescribed in the Bid Documents?
g) In case of any changes in contents of text, whether
changes are of minor / clerical nature (which in no way
limits the right of NTPC in any manner)?
 h) In case of deviations in text of BG, which materially affect
the right of NTPC, whether the changes have been
agreed based on the opinion by Legal Department or BG
is considered acceptable on the basis of opinion of Law
Department already available on the similar issue.

i) Are the factual details such as Bid Document No., NOA/

LOA/ Contract No./ PO number, Contract Price,
Percentage of Advance, Amount of BG and Validity of BG
correctly mentioned in the BG?
j) Whether overwriting/cutting if any on the BG have been
properly authenticated under signature & seal of
executant?
k) Whether the BG has been issued by a Bank in line with
the provisions of Bid/ Contract documents?
l) In case BG has been issued by a Bank other than those
specified in Bid/Contract Document, is the BG confirmed
by a Bank in India acceptable as per Bid/ Contract
documents?
Certified that the Bank Guarantee submitted has been verified and accepted in line with
the prescribed procedure.

NOTE:
(i) The Executive from Concerned Execution Department shall verify the BG/ Scanned
copy of BG in the system in line with the prescribed procedure and the same shall
be digitally approve in the system. The BG shall not be approved at a level lower
than the DGM.
(ii) Dealing Executive of UT at the level of E5/E6 shall certify that BG has been verified
from the issuing bank.
 ANNEXURE-VI

PROFORMA FOR VERIFICATION OF BANK GUARANTEE

No. Dated :

The Branch Manager

…………………….
…………………….

Subject: Bank Guarantee No…….dated……for ….(amount in figures and words)….

Dear Sir,

We have received a Bank Guarantee under your signature bearing no…….dated……for

….(amount in figures and words)………..on behalf of .................. as Bid Security/Advance
Payment Guarantee/Contract Performance Guarantee/ other (to be specified)*** submitted
by ………….(mention name and address of the contractor/supplier) in respect of the
Contract No…………dated………….The captioned guarantee is valid upto
………….

You are requested to kindly return the second copy of the letter by registered post certifying
under your Bank’s seal that the above mentioned Bank Guarantee has been properly
executed and issued by you or by an authorized officer of the Bank.

Yours faithfully,
For NTPC Ltd.

( )
Name …………………
Designation ………………….
(***Delete whatever is not applicable)

CERTIFICATE

Certified that the aforesaid Bank Guarantee has been properly executed by and issued by
……………..as an authorized officer of the Bank with the particulars mentioned above,
which are verified to be correct.

1. Signature ……………..
2. Name ………………….
3. Designation with
Bank’s seal…………….
4. Power of Attorney
Signing Power No…….
Regd Mail to
Shri …………..
NTPC LTD
 ANNEXURE-VII

PROFORMA FOR LODGING CONDITIONAL CLAIMS

UNDER THE BANK GUARANTEE
(To be issued within 30 days prior to expiry of Bank Guarantee)

No. Dated:

The Branch Manager

…………………….
…………………….

Subject: Conditional Claim under Bank Guarantee No……………dated ……..

for ….(amount in figures and words)………..valid upto……………

Dear Sir,

Please refer to Bank Guarantee No…………dated………for ….(amount in

figures and words)………..valid upto……….issued by you on behalf of
…….(mentioned name and address of the contractor/supplier) in our favour
towards the Contract No………..dated…..being Bid Security/Advance
Payment Guarantee/Contract Performance Guarantee/ other (to be
specified) ***

The captioned Bank Guarantee to valid up to……………We do hereby lodge

our claim/demand in terms of bank guarantee and call upon you to pay the
sum of ….(amount in figures and words) being the amount covered
under the above Bank Guarantee
forthwith.

In the event this Bank Guarantee is extended and such letter of extension
duly executed on stamp paper of requisite value is received by us, this claim
may be treated as withdrawn.

This is without prejudice to our rights under the guarantee and under the law.

Thanking you,
Yours faithfully,
For and on behalf of
NTPC Ltd.

(AUTHORISED
SIGNATORY)

***Please strike whichever is not applicable

 ANNEXURE-VIII
Ref.No. Date:
PROFORMA FOR INVOCATION OF BANK GUARANTEE
(To be issued before 7 days of expiry of BG to “The Branch
Manager” of Bank issuing BG)

The Branch Manager

…………………….
…………………….

Subject : Invocation of Bank Guarantee No…………….dated…………… for

….(amount in figures and words)………..valid upto…………………
Dear Sir,

Please refer to Bank Guarantee No……………dated ……………..for ……..(amount

in figures and words)…… as extended by letter of extension dated……… issued by
you in our favour on behalf of ……………..(mention name and address of the
contractor/ supplier)…………… towards Contract
No…………….dated…………..awarded by NTPC to the Contractor as an Bid
Security/ Advance Payment Guarantee/ Contract Performance Guarantee/ other (to
be specified) (#)
In terms of the aforesaid Guarantee, we invoke the said Guarantee and hereby make
a demand on you to remit a sum of ….…….(amount in figures and words)………….
together with interest* to us immediately by Electronic Fund Transfer (NEFT/RTGS)
in favour of NTPC Limited as per bank details mentioned below:
Beneficiary: NTPC Limited
Name of the Bank: State Bank of India
Account Number: 10813608669
IFSC Code: SBIN0017313
Branch Address: 5th Floor, Redfort Capital, Parsvnath Towers, Bhai Veer Singh Marg,
Gole Market, New Deli-110001
This supersedes our conditional claim letter No……….dated……………
Original Bank Guarantee shall be handed over to you upon successful remittance
of funds to NTPC’s above mentioned bank account.

Thanking you,
Yours faithfully,
For and on behalf of
NTPC Limited

(Authorised Signatory)

*Delete the portion if not relevant to the particular case

#Strike whichever is not applicable

Note: (1) A copy of the above letter is also required to be sent to Bank’s Head Office
(2) In case of hand delivery, acknowledgement of Bank is to be obtained on
the duplicate copy.