COAL INDIA LIMITED E-PROCUREMENT AT CIL

1. COAL INDIA LIMITED E-PROCUREMENT AT CIL

2. Corporate Structure Coal India Limited Central Mine Planning & Design Institute (CMPDI) Eastern Coalfields Limited (ECL) Bharat Coking Coal Limited (BCCL) Central Coalfields Limited (CCL) Northern Coalfields Limited (NCL) Western Coalfields Limited (WCL) South Eastern Coalfields Limited (SECL) Mahanadi Coalfields Limited (MCL) • The mines of Assam is under NEC which is administered directly by CIL • CIL has produced 567.36 Million Tonnes of Coal during FY 2017-18. • Achieved an all-time high off-take of 580.28 Million Tonnes with a 6.8% growth compared to last year. • CIL is one of the highest contributors to the government coffers and paid corporate taxes of Rs. 7432.89 crores to Government of India in financial year 2017-18. • During 2017-18, Coal India Limited earned a pre-tax profit of Rs. 10,726.44 crores and a Profit after Tax of Rs. 7,020.22 crores.

3. Implementation of e-Procurement at CIL • CIL has implemented e-Procurement way back in 2007 itself where Reverse Auction for the first time was used for procurement of Explosives. • Based on initial success, CIL appointed MSTC as service provider in 2009 through Tendering process. • In 2011, M/s ITI was appointed as service provider through Tendering process. • In the year 2013, based on the initial success of NIC at MCL, MoU was signed on 22nd April, 2013 for developing e-procurement cum Reverse Auction portal for CIL and its Subsidiaries.

4. Common e-Procurement portal for CIL and its Subsidiaries • NIC developed a dedicated GePNIC E-procurement portal (www.coalindiatenders.nic.in) for CIL and its subsidiaries in 2013. • In January, 2016, CIL has implemented modified Single Cover System with Reverse Auction. • Approx 33000 Tenders were floated in the FY 2017-18 of Tendered value of Rs. 43,000 crores approx

5. Single Cover Modified System(For Tender value < = 1 crore) • The prospective bidders shall upload their bids by downloading the NIT and the formats (TPS, BOQ etc) along with all the supporting documents in the e-procurement portal within the stipulated date of tender submission. • EMDs are to be paid online through Axis Bank Online payment system. • On scheduled date & time of tender opening, bids are opened by the Tender openers and upon opening of the tender , System automatically evaluates particulars as contained in Techno Commercial Parameter sheet uploaded by the bidder and comparative statement of prices is generated by the system. • Only the documents of the system declared L-1 bidder are downloaded and after evaluation of the uploaded documents, shortfall documents, if required, shall be sought from them.

6. Single Cover Modified System(Cont…) (For Tender value < = 1 crore) • Maximum of 2 chances, 7 days for first chance and 5 days for second chanceshall be given to the L-1 bidder to submit shortfall documents. • If the techno-commercial acceptability of L-1 bidder is established upon verification of documents, the case is processed by the Tender committee, for award of the work, after justification of price. • If techno-commercial acceptability of lowest quoted bidder is not established, then the L2 bidder is considered as L1. This process is repeated unless techno-commercially acceptable L-1 bidder is established.

7. Single Cover Modified System(For Tender value > 1 crore) • For estimated tender value more than 1 crore, the tenders are finalised through a reverse auction system. • Upon opening of the Tender, system displays item-wise L-1 price. A reverse auction platform is created in the online portal, displaying only the item wise start bid price, which is the L1 price received. For Works and Services tenders, the start bid price is L1 price or the estimated cost + 10% whichever is lower. • Initial period of Reverse auction ( R A) is kept as two hours. Auto extensions of time by ten minutes in case of any reduction recorded in the last ten minutes is allowed till no bid is received in the last 10 minutes. • The bidder’s identity is not disclosed during the reverse auction process. This anonymity feature ensures obtaining most competitive price through R A. • After R A, system discloses the Bidder’s information and generates Comparative Statement.

8. Penalty for Defaulting Bidders • The documents of the bidder who quoted lowest rate item-wise in reverse auction process are scrutinized and verified and if acceptable as per NIT, they are declared as L-1 Bidder. The process is continued, if the bidder is a defaulter. • Penalties are imposed to the defaulting bidders in case of non submission/ faulty documents as per NIT • In case of tender for works & services full EMD ( Max Rs 50.0 lacs) is forfeited, for a defaulter bidder.

9. IMPROVEMENT IN FINALISATION TIME

10. Critical Chain Procurement Process for HEMM • Tenders issued from CIL, Subsidiary Headquarters and NEC for all HEMM and high value Mining equipment are published in the CIL e procurement portal under a specific Organization chain, which supports two part opening. • There is no change in the creation of the tender from the existing process. On scheduled date & time of tender only Cover I is opened. The documents and the TPS of all the Bidders are securitized. • The techno-commercial acceptability of all the bidders are evaluated and after evaluation, the date of opening of the Price bids is fixed. On initiating the process of opening the Price bid, the system will allow for Automatic creation of Reverse Auction process with the L-1 rate of each item as “Auction Start Price in INR”.

11. H1 Bidder elimination in Reverse Auction To encourage serious bidding and obtaining realistic start bid price for RA, CIL implemented the following: • Item-wise H-1 bidder (in case of goods)/ H1 bidder (for Works and Services) will be disallowed to participate in Reverse Auction, if more than three techno-commercially acceptable bids are available. If two bidders have quoted the same H-1 landed cost, the bidder who submitted/frozen the bid later will not be able to participate in Reverse Auction. However, for implementing policy of MSEs and Make in India of GoI, System was devised for allowing preferential bidders • Tenders are published to allow MSEs and Make in India bidders to submit their bid as Preferential bidders. • MSEs and Make in India bidders will not be eliminated to participate in R A, even if they are H-1 bidder.

12. Bidders Enrolment with preferential category During New Registration/ Edit Profile

13. Submission of Bid in Preferential Category During Submission Click Here Only Preferential enabled bidder can see this option

14. Uploading document of Preferential Category If Select Yes Need to upload documents

15. Challenges faced CIL faced few challenges in implementing the modified single cover system • The L1 bidders failing to submit the provenness document, getting rejected. • Abruptly reducing the price in RA, depriving the other bidders to participate in RA and thereafter not providing the requisite documents and allowing their L2 partner to win the tender at higher price. • Monetary penalty could not be imposed in case of bidders exempted from paying EMD. • Banning of bidders for individual organizations, where they have become a defaulter.

16. Awards received • Coal India Ltd has been awarded for “innovative use of its fully automated tendering process” at a national workshop organised by the Ministry of Finance, Department of Expenditure, NIC, Ministry of Electronics and Information Technology in January, 2018.

17. Thank You