1

Expression of Interest and Bid

for

Appointment of Programme Manager

for

Scheme for Setting up of Plastic Parks

January, 2016

Issued By:

Department of Chemicals & Petrochemicals

Shastri Bhawan

New Delhi

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CONTENTS

Sl.

No.

Title Pages

Invitation for bids 3

I Purpose 4-5

II Scope of Work and Key Deliverables 5-6

III Competency and Expertise Requirements 6-7

IV Brief Description of Selection Process 8-10

V Technical Proposal 10-11

VI Financial Proposal 11

VII Earnest Money Deposit/Performance Bank Guarantee 11-12

VIII Forfeiture of EMD and PBG 12-13

IX Fee Payment Schedule 13

X Proposal Submission and opening 13-14

XI Schedule of Important Events 14

XII Appendix I:Scheme for Setting Up of Plastic Parks 15-23

XIII Appendix II: Forms 24-35

XIV Appendix III: Financial Forms 36-37

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F.No.28016/13/2009-PC.II (Vol.III)

Government of India

Ministry of Chemicals & Fertilizers

Department of Chemicals & Petrochemicals

******

Shastri Bhawan, New Delhi

Dated the 18th

January, 2016

Appointment of Programme Manager for “Scheme for Setting Up of Plastic Parks”

Invitation for Bids

Ministry of Chemicals & Fertilizers, Department of Chemicals & Petrochemicals

(DCPC) invites Technical and Financial proposal from competent agencies/firms,

complying with laid down criteria in Expression of Interest (EoI) document, to render the

services of Programme Manager for Implementation of “Scheme for Setting Up of Plastic

Parks”.

For more details, please visit the website www.chemicals.nic.in. The proposal may be

submitted to the undersigned. The key schedule is as under:

1. Placing EoI on web-site 19.01.2016

2. Pre-Bid conference At 1500 hrs on 01.02.2016

3. Last date for submission of Bids. Up to 1600 hrs on 11.02.2016

4. Opening of Technical Bids At 1630 hrs on 11.02.2016

5. Opening of Financial Bids At 1500 hrs on 19.02.2016

Director (PC-I)

Department of Chemicals & Petrochemicals

Room No.233, A-Wing, 2nd

Floor, Shastri Bhawan

Dr. Rajendra Prasad Road, New Delhi-110001

Tel. 011-23385386, Fax: 011-23382564

E mail: arun.agarwal@nic.in

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I. Purpose

a) Plastic is a versatile material which plays a major role in delivering and

sustaining the quality, comfort and safety of modern life-style. Plastic

products help every day to improve people’s lives, whilst conserving natural

resources and helping to protect the environment. The Indian plastic industry

is not fully equipped to tap the potential. State of the art infrastructure

including facilities for enhancing the productivity, product diversification,

design etc in the form of a ‘Plastic park’ has been envisaged as a solution to

address the challenges being faced by the industry. A plastic park is an eco-

system with supporting infrastructure, mutual common facilities and other

such advantages as to boost the competitiveness of the industry. Such an

integrated approach will assist the plastic sector to move up the value chain

and contribute to the economy more effectively.

b) With this objective, a Scheme for Setting up ‘Plastic Parks’ has been

introduced by the Department of Chemicals and Petrochemicals (DCPC).

Detailed guidelines for setting up projects under the Scheme are at

Appendix 1.

c) The Scheme would financially assist industry driven projects by way of one

time grant in aid.

d) The task of handholding projects and the groups of entrepreneurs

implementing the projects under the Scheme is very complex and needs

intensive guidance. Therefore, the engagement of a professional institution

which has experience of cluster development and implementing similar

projects was felt to be necessary, for effective implementation of the scheme.

Such an agency, termed as Programme Manager (PM) shall assist the

Department in implementation of the Scheme.

e) It is in this context that the Department of Chemicals and Petrochemicals is

inviting Technical and Financial Proposals from competent agencies/ firms

who comply with the criteria specified in the subsequent sections to render

the services of PM.

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f) The Department intends to engage two (2) agencies as Programme Manager.

To be designated as PM1 and PM2.

II. Scope of Work and Key Deliverables

The Programme Manager’s scope of work shall be two fold –assisting the

Department of Chemicals and Petrochemicals in implementing the Scheme, and also to

guide the implementing agencies / Scheme beneficiaries in conceptualizing and

commissioning projects under the Scheme. The objective of this consultancy is to

procure transaction related advice, develop a revenue model, undertake a financial

appraisal and assist in award of the project in a manner which ensures:

Participation of the best available entities;

Financing of the capital cost by the Special Purpose Vehicle; and

Optimizing the revenue potential of the project.

The detailed scope of the services is mentioned below:

Assisting the Department in:

a) Revising operational guidelines for the Scheme including identification of

potential location, format for reporting, standard forms of agreements etc.

b) Project identification which includes

Sensitization of the industry/ potential beneficiaries of the scheme of its

benefits through workshops/ road shows/ campaigns.

Demand assessment

Profiling the entrepreneurs willing to set up the plastic park.

c) Inviting proposals, preparing draft formats of the proposal, formulating

evaluation criteria for selection of Projects and inviting expression of interest

for setting up of projects under the scheme.

d) Evaluating the received proposals / concept notes for according in-principle

approval to the projects based on the strength of the proposals and the credit

worthiness of the project proponents.

e) Appraisal of the DPRs including review of cost estimates, reasonable

estimation of the likely revenues, preparation of cash flow statements and the

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revenue model indicating financial viability, commercial sustainability and

socio-economic impact for according final approval to the projects.

f) Assisting the Scheme Steering Committee (SSC) in identification of project

risks and in allocation of the same in an efficient and economic manner.

g) Preparation of the terms of agreement / contract that the Department would

sign with the Special Purpose Vehicle.

h) Preparation of a consolidated list of approvals / consents / clearances /

required from government agencies.

i) Monitoring the Scheme progress as per the Scheme guidelines and furnishing

regular reports through Management Information System (MIS) System

j) To maintain and update the database of the projects on monthly basis in the

software decided by DCPC.

k) Release of grant to the SPVs based on achievement of milestones.

l) Screening of documents/ reports/ specific requests submitted by the SPVs to

the Department.

m) To assist the SPVs in achieving financial closure.

n) Provide other advisory support to the Department in successful

implementation of the Scheme.

Programme Manager’s association with the SPV, in terms of handholding and

contributing for making the contract effective and enforceable, will be such, so as to

ensure that there will be no conflict of interest.

III. Competency and Expertise Requirements

The agency shall have the following skills, expertise and experience etc. and the

same must be supported by documentary evidence

a) The agency must have expertise and resources for providing consultancy /

supervisory services in management and execution of cluster infrastructure

projects, particularly in the area of industrial parks promoted by Central/State

Government.

b) The applicant should be a Company / Firm / Limited Liability Partnership (LLP)

registered in India, and operational for at least 5 years, as on the last date of

submission of EoI .

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c) The Firm, as per the annual audited report (Supported by duly audited balance

sheet or statuary auditor’s certificate), should :

i) have a Minimum Annual Turnover of INR 25 Cr from Advisory/

Consultancy over the last 3 years.

ii) not have made loss in any year during the last 3 years

iii) have an experience of at least 3 assignments in program management

/implementation of Projects or Schemes, pertaining to industrial

infrastructure and cluster development(Supported by documentary

evidence).

d) Agency must be willing and capable of staying on with the implementation of the

project till its completion i.e. from concept to commissioning.

e) Experience of implementing multi-stakeholder developmental interventions is

desirable.

f) Experience in establishment of SPVs and handholding such SPVs in execution of

their business plans.

g) Experience in handling statutory and Environmental Management issues is

desirable.

h) The agency shall provide certified copies of the net worth of the company and

Income tax returns for the last 3 financial years.

i) The agency shall provide a list of personnel with at least one expert in each legal,

company secretarial, project financing, infrastructure planning and engineering,

skill development aspects, etc., each to ensure that these inputs are made

available to the projects under one roof.

j) The applicant should not be blacklisted/debarred by any Central government

Department/agency, State Government department/ agency at the time of

submission of application.

k) Agency must have a strong understanding of the policy priorities of Government

of India on Cluster Infrastructure Development Scheme/Projects.

l) Consultants/organizations can apply as consortium; however, the Department will

enter into agreement with the lead organization/ consultant. During the

application, lead organization/consultant should apply with details of other

consultant/organization and their specific area of operation in the consortium

along with a copy of consortium agreement letter.

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IV. Brief Description of Selection Process:

a) As per the two stage selection process the Proposal comprises of technical and

financial bids to be submitted in two separate sealed envelopes. No bid shall be

accepted after the dead line of submission under any circumstances and shall be

returned unopened. In the first stage, a technical evaluation will be carried out to

list out technically qualified bids. The requisite EMD shall be placed with the

technical bid. As per GFR 174, a Consultancy Evaluation Committee, constituted

by Ministry/ Department, shall analyze and evaluate the bids and record in detail

the reasons for acceptance or rejection of technical proposals. The financial bid of

the bidder failing to meet the technical criteria will be returned unopened. In the

second stage, financial evaluation will be carried out, for only those bids which

have qualified in the first stage of technical evaluation, and as per provisions of

GFR; agency quoting lowest financial bid will be selected.

b) A Pre-Bid Conference will be held after the EoI is placed on the website. The

Prospective Bidders, if they desire so, may send any of their queries on the terms

and conditions of this EoI Document in writing by hand/post or by fax on 011-

23382564 Director, Room No. 233, A-Wing, Department of Chemicals and

Petrochemicals, Shastri Bhawan, New Delhi or by email at arun.agarwal@nic.in,

so as to reach latest by 25.01.2016. The queries so received shall be clarified in

the pre-Bid conference to be held on 01.02.2016 at 1500 Hrs. No new queries

shall be taken up after the pre-Bid conference. Consolidated replies to the

relevant queries will be communicated in writing by the DCPC to all the

prospective Bidders and shall form part of the Bid Document.

c) Applicants are advised that the selection of Programme Manager shall be on the

basis of an evaluation as specified in this EOI. Applicants shall be deemed to

have understood and agreed that, no explanation or justification for any aspect of

the Selection Process will be given and that DCPC’s decision would be final,

without any right of appeal whatsoever.

d) Every sheet and all forms complete in all respect shall be signed by the person/

persons duly authorized to sign on behalf of the applicants with affixing the

applicant’s rubber stamp. The Power (s) of Attorney supporting authorizing of the

signatory shall be enclosed with the offer. Any / all corrections made in the offer

shall be duly authenticated by the signature of the authorized signatory.

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e) The technically qualified agency quoting the lowest fee (i.e. L1) shall be awarded

the works as PM1.

f) The L2 bidder shall be invited for negotiations (to work at L1 rate, i.e. the fee

quoted by PM1). Upon agreement, the works shall be awarded to the L2 bidder as

PM 2, but at the L1 rate.

g) During allocation of any project, it shall be allocated by default to the PM 1.

However, if there is “Conflict of Interest” involved in allocating any project(s) to

PM 1, then such project(s) shall be allocated to PM 2.

h) Conflict of Interest: Department requires that the Programme Manager provides

professional, objective, and impartial advice and at all times, hold the

Department’s interests paramount, avoid conflicts with other assignments or its

own interests, and act without any consideration for future work. The Programme

Manager shall not accept or engage in any assignment that would be in conflict

with its prior or current obligations to other clients, or that may place it in a

position of not being able to carry out the assignment in the best interests of the

Department.

i) Arbitration: In the event of any question, dispute or difference arising under the

agreement (to be signed with the successful bidder(s)), or in connection thereof,

except as to the matter the decision of which is specifically provided elsewhere

under the agreement, the same shall be referred to an arbitral tribunal, hereinafter

called the “TRIBUNAL”, consisting of sole arbitrator to be appointed by the

Secretary, Department of Chemicals and Petrochemicals, Ministry of Chemicals

and Fertilizers, Government of India.

The Arbitration proceedings shall be conducted in accordance with the provisions

of Arbitration and Conciliation Act 1996, as amended or replaced from time to

time. The governing law shall be the laws of India.

j) Fraudulent and Corrupt Practices: The Bidders and their representatives/

officers, employees, agents and advisers shall observe the highest standard of

ethics during the Bidding Process, selection and execution of such contracts. For

the purposes of this Clause the following terms shall have the meaning

hereinafter respectively assigned to them:

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i) “Corrupt practice” means the offering, giving, receiving, or soliciting of

anything of value to influence the actions of a public official in the

selection process or in the contract execution; and

ii) “Fraudulent practice” means a misrepresentation or omission of facts

or suppression of facts or disclosure of incomplete facts, in order to

influence the selection process or the execution of a contract,

iii) “Collusive practice” means a scheme or arrangement between two or

more consultants, with or without the knowledge of DCPC, designed to

establish prices at artificial non-competitive levels,

iv) “Coercive practice” means harming, or threatening to harm, directly or

indirectly, persons or their property to influence their participation in the

Bidding Process or in a procurement process or to affect the execution

of a contract.

DCPC will reject a proposal for award if it determines that the consultant

recommended for award has engaged in corrupt or fraudulent activities in

competing for the contract in question. The Government will declare a consultant

ineligible either indefinitely or for a stated period of time, to be awarded a

Government contract if it at any time determines that the consultant has engaged in

corrupt or fraudulent practices in competing for, or in executing a contract.

V. Technical Proposal

The technical Proposal (Appendix 2: Form 1 to Form 8) should be divided into

the following sections:

a) Technical Proposal cover letter ( Form 1)

b) Section 1 Particulars of the Applicant: Brief profile of the firm along with

Audited Financial Statements for the last three financials years (brochures /

printed material could be provided as Annexure) (Form 2 A & B)

c) Section 2 Understanding the Scope of work and the concept of Plastic Park

(Form 3)

d) Section 3 Compliance to the technical criteria listed under Competency and

Expertise Requirements section above (please provide documentary evidence

in respect of compliance): Experience in handling infrastructure centric

schemes/programmes of Government of India Ministries/State Governments

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(Form 4); Experience in handling cluster infrastructure projects/parks in

diverse industrial sectors (Form 5); Experience in establishment of SPVs and

monitoring SPVs in execution of their business plans (Form 6); Experience

in arranging statutory & environmental clearance and achieving financial

closure (Form 7)

e) Section 4 Proposed team for the assignment along with brief CVs (Form 8)

and documentary evidence for all other points of the “Competency and

Expertise Requirements”, not specifically mentioned here.

f) Section 5 Earnest Money Deposit (EMD) as prescribed in the Bid Document.

VI. Financial Proposal

a) Financial Proposal (Appendix 3) shall have the following:

i. Financial Proposal cover letter ( Form 1)

ii. Financial Proposal ( Form 2)

b) The Financial Proposal should indicate the lump sum professional fee

chargeable. The fee shall be payable for every project approved by the

Scheme Steering Committee under the Scheme for setting up of Plastic Parks.

c) The Financial Proposal shall take into account all expenses and tax liabilities.

For the avoidance of doubt, it is clarified that all taxes shall be deemed to

be included in the costs shown under the Financial Proposal. Further, all

payments shall be subject to deduction of taxes at source as per

applicable laws.

d) The Financial proposal should be unconditional and valid for a period of 180

days from the date of submission.

VII. Earnest Money Deposit/Performance Bank Guarantee

a) Earnest Money Deposit (EMD)

The applicant would also be required to deposit Rs. 5 lakh towards Earnest

Money Deposit, in the form of Demand Draft, issued by any scheduled bank,

in the name of ‘Pay and Accounts Officer, Department of Chemicals and

Petrochemicals’ payable at New Delhi. This amount shall be paid offline. The

EMD should remain valid for a period of 45 days beyond the bid validity

period of 180 calendar days i.e. 225 days from the date of submission.

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b) Return of EMD

After signing of agreement, the EMD will be returned to the successful

bidder. The EMD of other bidders, unless otherwise forfeited, shall also be

returned within seven days after signing of agreement with successful bidder.

c) bid not accompanied with prescribed EMD

A bid not accompanied with prescribed EMD shall be summarily rejected by

DCPC at the bid opening stage on grounds of being non-responsive and

returned to the bidder unopened.

d) Performance Bank Guarantee

The applicant, who has been awarded the contract, shall furnish a

Performance Bank Guarantee (PBG) of Rs.12.5 lakh to handle the

assignment. The PBG shall be made on a scheduled bank. The PBG must be

submitted within seven days of issue of letter to successful bidder or before

signing of the Agreement, whichever is earlier. In case of absence to furnish

PBG, within time, the EMD of the successful bidder shall stand forfeited.

Initially, the PBG shall be valid for a period of three years. The successful

bidder, on its own, shall extend the validity period of the PBG on similar

terms at least one month prior to the day of its expiry without any demand or

notice from DCPC. The PBG shall be kept valid for an extended period of six

months beyond the period of Agreement or till finalization of accounts

whichever is later.

VIII. Forfeiture of EMD and PBG

The EMD shall be forfeited:

a) If the Bidder withdraws the Bid during the period of validity of the Bid.

b) In the case of the successful Bidder, if the successful Bidder fails:

(i) To sign the Agreement with DCPC.

(ii) To furnish the prescribed Performance Bank Guarantee.

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In case of Bid security forfeiture, the Bidder will not be eligible to participate in

any bid floated by DCPC in the future.

Performance Bank Guarantee shall be forfeited by DCPC upon any failure of

performance of the terms & conditions of the agreement or any midway unilateral

withdrawal from the assignment by the successful bidder.

IX. Fee Payment Schedule

The Fee payable to the selected Programme Manager shall be released in the

manner indicated below. The same shall be payable for every project approved by the

SSC:

Milestone % age of fee

payable

Time Lines

Appraisal of DPRs 10 3 months from the date of receipt of

DPR from the State Govt.

Final Approval of project 25 6 months from the appraisal of DPRs.

Release of IInd

installment of

grant to SPV

25 6 months from the release of Ist

installment of Grant-in-aid to SPV

Release of IIIrd

installment of

grant to SPV

25 6 months from the release of IInd

installment of Grant-in-aid to SPV

Release of final installment

of grant to SPV

15 6 months from the release of IIIrd

installment of Grant-in-aid to SPV

Penalty of 10 % (limited to a maximum of 20% of total fee) shall be levied for

every delay by more than a fortnight of the time frame in achieving a milestone.

However, the final authority to waive a penalty shall lie with the Scheme Steering

Committee (SSC).

X. Proposal Submission and opening

a) The Bid proposal should be submitted in a sealed envelope which shall contain

two separate sealed envelopes marked as Envelope ‘A’ (Technical Proposal

along with the EMD) and Envelope ‘B’ (Financial Proposal) positively by 1600

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Hrs. on 11.02.2016 or before on any working day between 0930 Hrs. and 1600

Hrs. (IST) in the sealed tender box placed in the Office of the Director, Room

No. 233, A-Wing, Department of Chemicals and Petrochemicals, Shastri

Bhawan, New Delhi.

b) The Technical Proposals shall be opened at 1630 Hrs. on 11.02.2016 in the

presence of the Bidders at Conference Room (Room No 220, A Wing) Shastri

Bhawan, New Delhi.

c) The Financial Proposals of the technically qualified Bidders shall be opened in

the presence of the technically qualified Bidders (who choose to attend) at 1500

Hrs. on 19.02.2016. The Financial Proposals (Envelope ‘B’) in respect of

Bidders not technically qualified shall be returned unopened.

XI. SCHEDULE OF IMPORTANT EVENTS

(Unless otherwise notified separately)

1. Placing EoI on web-site 19.01.2016

2. Receipt of letters seeking clarification, if any, from

Bidders.

25.01.2016

3. Pre-Bid conference At 1500 hrs on 01.02.2016

4. Issue of comprehensive clarifications along with

tender modifications, if any

05.02.2016

5. Last date & time for submission of Bids. Up to 1600 hrs on 11.02.2016

6. Opening of Technical Bids At 1630 hrs on 11.02.2016

7. Opening of financial Bids At 1500 hrs on 19.02.2016

NOTE:

The dates of events may be changed at the discretion of DCPC without assigning

any reason. Such change of dates, if any, will be suitably notified to those who

submitted the tender document. The notification will also be put up on DCPC

website www.chemicals.nic.in

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APPENDIX 1

SCHEME FOR SETTING UP OF PLASTIC PARKS I. Preamble

The share of India in world trade of plastics is very low. The Indian Plastics industry is

large but highly fragmented with dominance of tiny, small and medium units and thus

lacks the capacity to tap this opportunity. Department of Chemicals & Petrochemicals

has formulated this scheme with a view to synergize and consolidate the capacities

through cluster development. The Scheme has the following objectives:

II. Objective 1. Increase the competitiveness, polymer absorption capacity and value addition in the

domestic downstream plastic processing industry through adaptation of modern,

research and development led measurers. 2. Increase investments in the sector through additions in capacity and production,

creating quality infrastructure and other facilitation to ensure value addition and

increase in exports. 3. Achieve environmentally sustainable growth through innovative methods of waste

management, recycling, etc. 4. Adopt a cluster development approach to achieve the above objectives owing to its

benefits arising due to optimization of resources and economies of scale.

III. Scope 1. The scheme support setting up of a need based “Plastic Parks’ an eco system with

requisite state of the art infrastructure and enabling common facilities to assist the

sector move up the value chain and contribute to the economy more effectively.

The scheme will be demand driven. 2. The grant shall be by way of one time grant –in – aid to the special purpose

vehicle (SPV) formed by the State Government or any of its agencies such as

State Industrial Development Corporation (SIDC) in association with user

enterprises representing the plastic sector / sub sector and shall support the

following components in a typical plastic parks:

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(a) Infrastructure to support production units like roads, water supply, drainage,

electricity supply including captive power plant, effluent treatment plant,

telecommunication lines, solid / hazardous waste management, incinerator, etc. (b) Buildings for support services like administrative buildings, crèche / canteen / hostel

/ rest and recreation facilities, facilities for labour, marketing support system, etc. (c) Buildings and equipment / machinery for common facilities for characterization,

prototyping & virtualization, non-destructive material testing, incubation, training,

warehousing, plastic recycling, tooling, designing, Research & Development, etc. (d) Administrative and other management support including the salary of CEO for the

project implementation period. (e) Assistance for engaging engineers/ architects / construction management / other

experts. (f) Besides the above mentioned components aimed at creation of infrastructural

facilities, the scheme shall also support initiatives which are soft in nature to ensure

that the capacity of the beneficiary SPV and member enterprises is suitably

strengthened in order to absorb, implement and sustain the proposed initiatives.

These illustratively could include surveys / studies, sensitization / awareness

generation, skill development / training at various levels, exposure visits, etc.

3. The above list of common facilities is illustrative and each park could have its

own specific requirements based on the nature of units being set up and the products

proposed to be manufactured in the parks. The Scheme Steering Committee (SSC) shall

approve the project components and funding thereof depending upon the merits of the

proposal. 4. The project cost, for the purpose of this scheme, includes the cost of the above

items and land, subject to the condition that it shall be the responsibility of the SPV to

bring in land as its contribution. In addition, plant & machinery for production purposes

shall be responsibility of the SPV / member units and shall not be funded out of the

scheme. 5. The ownership of the above components including individual production units,

being funded out of the grant under the Scheme should rest with the SPV. 6. The scope of the Grant in-aid shall only be for the development of common

infrastructure facilities to be held with the SPV and shall not be available to production

units, if any, owned by SPV.

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IV. Funding Pattern Government of India would provide grant funding up to 50% of the project cost subject to

a ceiling of Rs. 40 crore per project. The remaining contribution in the SPV will be from

the State Government or State Industrial Development Corporation or similar agencies of

State Government, beneficiary industries and loan from financial Institutions. The equity

contribution of the State Government or State Industrial Development Corporation or

similar agencies of the State Government shall be at least 26% of the cash equity of the

SP ( excluding value of any land given as equity).

In the event of user enterprises/beneficiary industries/ private developers/JV partners

not bringing in the required equity contribution with in a period of one year from the date

of final approval of the project, the deficit of cash equity (excluding value of land given as

equity) shall be financed by the State Government or State Industrial Development

Corporation or similar agencies of the State Government. Cost escalation due to any

reason has to be borne by the State Government or its agency. Interest earned on central

grant by the SPV would be treated as a part of the central grant.

V. Financial assistance 1. Each of the projects proposed to be implemented by a Special Purpose Vehicle (SPV)

shall be eligible for grant funding under the scheme up to 50 % of the project cost (as

mentioned in the previous section) not exceeding Rs 40.00 Crore per project subject

to the following:

(a) A minimum of 25 per cent of the Grant-in-aid should be earmarked for common

enabling facilities dedicated to plastic processing industry like characterization,

prototyping & virtualization, non-destructive material testing, incubation,

training, warehousing, plastic recycling, tooling design, Research &

development, etc.

(b) Assistance for Administrative and other management support of SPV including

the salary of CEO for the project implementation period shall not exceed 5 % of

Grant-in-aid of the overall project cost.

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(c) Assistance for engaging engineers / architects / construction management / other

experts for execution of civil works shall not exceed 5 % of Grant-in-aid of the

overall project cost. 2. Assistance for soft initiatives [as explained at pt. no (f) in the section above and as

approved by SSC] shall be over and above the grant provision for infrastructure

components and shall be to an extent of 75 % of the cost of soft interventions not

exceeding Rs 50 lakhs per project. This amount may be met from within the total

grant to be given for each project. 3. SPVs may dovetail funds from other sources as well for the project, provided there is

no duplication of funding for the same component / intervention. 4. The soft initiatives shall be funded during the project implementation phase.

Subsequently, it will be the responsibility of the SPV to undertake such initiatives on

its own.

VI. Implementation Framework: 1. Department of Chemicals and Petrochemicals will call for preliminary proposals from

State Governments interested in setting up of Plastic parks. The State Government or

its agency such as State Industrial Development Corporation or any equivalent state

entity as identified and recommended by the respective State Government, shall

submit the preliminary proposals and shall cover the following:

(a) Proposed location of the park.

(b) Background of the State agency and their financial strength.

(c) Conceptual background of the project.

(d) Proposed product mix.

(e) Broad cost estimates and proposed means of finance.

(f) Participation of the State Government or its agencies / undertaking with equity

stake in the proposed SPV in addition to facilitation in terms of getting necessary

assistance for external / access infrastructure.

(g) Investment in infrastructure (project cost minus cost of land) per acre of proposed

plastic park.

(h) Total project cost in terms of number of times of grant-in-aid of Government of

India.

(i) Readiness for project execution.

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2. Based on the merits of the preliminary proposals as per the above mentioned

parameters and commitment of the State Government, SSC shall accord “in-

principle” approval to the project. Projects proposing to enter manufacturing of

medium-high end products shall be given preference. 3. Upon getting the in-principle approval, the applicant shall prepare a Detailed Project

report (DPR) and submit it to the Department. Final approval shall be accorded by

the SSC based on the appraisal and recommendations of the DPR by the Programme

Manager (PM) subject to the applicant complying with the following criteria:

(a) Establishment of SPV.

(b) Land in possession of SPV. Land should be procured and registered / transferred

in the name of SPV.

(c) Quality of infrastructure, gauged by investment proposed in infrastructure (project

cost minus cost of land) per acre of proposed in plastic park.

(d) Total Project cost in terms of number of times of grant-in-aid from Government.

(e) Commitment of the State Government or its agency to bear the remaining project

cost as detailed in para IV ‘Funding Pattern’.

(f) Execution of share subscription agreements between the SPV and its members.

Equity participation by State Government or its agency is mandatory. Establishment

of Escrow / Trust and retention Account in Schedule A Bank.

(g) Willingness of the financial institution to lend to the project in case external

funding is envisaged. A copy of the final sanction letter should be provided.

(h) Mobilization of at least 20 % of equity contribution of the members including the

cost of land by the SPV. 4. The “in-principle” approval accorded by the SSC shall be valid for a period of six

months, with-in-which the SPV has to comply with the conditions and apply for final

approval, failing which “in-principle” approval shall lapse, unless a specific

extensions is granted by the SSC against a specific request by the SPV justifying the

extension.

VII. Scheme Steering Committee (SSC)

(a) The Department of Chemicals and Petrochemicals will be the coordinating

Department providing overall policy, coordination and management support to

the scheme.

20

(b) A Scheme Steering Committee (SSC) will be constituted under the Chairmanship

of Secretary (Chemicals and Petrochemicals).

(c) The SSC may induct representatives of the industry associations, R & D

institutions and other expert/ technical agencies as members or special invitees.

VIII. Special Purpose Vehicle (SPV)

(a) Assistance under the scheme will be available to a Special Purpose Vehicle

established for the purpose of setting up a plastic park.

(b) The SPV should be a distinct legal entity formed by the State Government or its

agency such as State Industrial Development Corporation or any equivalent state

entity as identified and recommended by the respective State Government in

association with user enterprises representing the plastic sector / sub sector. The

SPV will ordinarily be a Company registered under Companies act 1956. Any

other structure will be subject to the approval by SSC.

(c) The SPV as the implementing agency under the Scheme shall perform the

following functions:

i. Preparation of the DPR with complete technical and financial details

ii. Procure land for the project.

iii. Achieve financial closure for the project including equity and debt;

arrange additional funds, if required, to meet time and cost overruns.

iv. After developing the infrastructure, SPV would allocate sites to industry

for setting up units.

v. Own and maintain the assets created under the Scheme.

vi. Levy and collect service / user charges form the member enterprises for

the facilities created. It has to be so structured as to be self sustaining with

a positive revenue stream.

vii. Appoint Business Development Service (BDS) provider / contractors/

consultants for technical / financial / managerial functions.

viii. Get all statutory approval and clearances including environmental from

Government / other bodies

ix. Furnish requisite information / filling regular progress reports to the

Department / other institutions

21

x. Utilize GOI grant only for the components mentioned in the sanction

letter; any deviation would require prior approval of Government of India

in writing.

xi. SPV shall complete the setting up of the Plastic Park in a period of three

years from the date of final approval.

IX. Programme Manager (PM)

(a) Department shall avail of the service of a professional agency with

appropriate expertise and competence to assist in effective implementation of the

Scheme. This agency, termed as Programme Manager (PM), shall perform the following

functions:

i. Assisting the Department in:

Devising operational guidelines for the Scheme roll out.

Sensitization of the industry/ potential beneficiaries on the scheme and its benefits

through workshops/ road shows/ campaigns

Formulating evaluation criteria for selection of Projects based on expression of

Interest/ Preliminary Proposal and evaluating the received proposals

Appraisal of the DPRs indicating financial viability, commercial sustainability and

socio-economic impact for according final approval to the projects

Monitoring the Scheme progress and furnishing regular reports

Release of grant to the SPVs based on achievement of milestones along with time

lines as approved by SSC.

ii. Programme Manager’s association with the Special Purpose Vehicle (SPV), in

terms of handholding and contributing for making the contract effective and

enforceable, will be such, so as to ensure that there will be no conflict of interest.

(b) The fee payable to the PM for the said period of handholding shall be separate

from the grant being given to projects.

22

X. Role of the State Government:

1. Promotion of the industrial infrastructure is normally done by the State

Government, industry being the State subject. Accordingly, the State

Government is envisaged to play a pro-active role in the following areas:

a) State Government shall nominate and recommend the state agency such as

State Industrial Development Corporation (SIDC) for execution of the

project.

b) State Government or its agency shall share the project cost in setting up of the

plastic park in the State by the SPV as indicated in para IV ‘Funding Pattern’.

c) Mandatory equity participation in SPV by State Government or its agency.

d) Providing the necessary assistance for external/ access infrastructure as roads,

Power, Water supply etc.

e) Providing requisite land to the project, wherever needed, in appropriate mode

f) Providing necessary project related clearances on expeditious basis

g) Providing flexible and conducive labour environment and consider special

facilities like exemption of stamp duty etc. for the SPV/ units

h) Extending the benefits of other related schemes to the SPV/ member

enterprises for increasing viability of the projects

XI. Release of Funds

1. The release of Grant-in-aid will be subject to the identification of milestones and

time limits for each milestone to be decided by SSC.

2. The following schedules shall be adopted for release of Grant-in-aid to the SPV:

(a) 20% as mobilization advance, on Final Approval of the project, achieving the

financial closure and getting the bank guarantee as decided by SSC.

(b) 35% as 2nd

installment

(c) 35% 3rd

installment

(d) 10% as final installment

3. Second installment would be released after the utilization of at least 60% of the

1st

installment and after the proportionate expenditure has been incurred by the

SPV.

4. Third installment would be released after the utilization of at least 100% of 1st

and 60% of 2nd

installments and after the proportionate expenditure has been

23

incurred by the SPV

5. Final installment would be released after SPV has mobilized and spent its entire

share in proportion to grant and after 25% of the units in the park have become

operational

O&M of Assets

1. SPV should be responsible for O&M of assets created under the scheme by

way of collecting user charges from the members/ user

2. SPV should ensure that the services of the Common Facility Centres (CFCs)

created under the scheme are extended to the cluster in general, in addition to

the member enterprises

3. The assets acquired/ created wholly or substantially out of Government grant

except those declared as obsolete and unserviceable or condemned as the

procedure laid down in General Financial Rules (GFR) shall not be disposed

off without prior approval of the sanctioning authority

Recall of the Central grant

The Scheme Steering Committee retains the right to recall the central grant along

with applicable penal interest in case of unsatisfactory use of the grant including

compromise with the quality envisaged, or partial / incomplete implementation of the

project.

****

24

APPENDIX 2

TECHNICAL PROPOSAL

Form I

Technical Proposal Cover Letter

(On Applicant’s letter head)

_________ 2016

Director

Room No.233, A-Wing,

Department of Chemicals and Petrochemicals,

Shastri Bhawan, New Delhi

Subject: Technical Proposal for appointment of Programme Manager for

Scheme for Setting Up of Plastic Parks.

Sir,

We, the undersigned, are pleased to submit our technical proposal for

“appointment as Programme Manager for Scheme for Setting Up of Plastic Parks

in accordance with your Expression of Interest and Bid vide Notice/Advertisement

No._________dated ____ 2016.

We certify that the information provided in the proposal is true to the best of our

knowledge and understand that any variation to the same may lead to rejection of

our proposal.

25

We strictly comply with all the terms & conditions of the Expression of Interest

and Bid document; and unconditionally accept them.

We acknowledge the right of the Authority to reject our application without

assigning any reason or otherwise and hereby waive our right to challenge the

same on any account whatsoever.

Yours sincerely,

Authorised Signatory (in full and initials)

Name and Title of Signatory

Name of the Firm

Address ,Telephone No. & E.mail

26

Form 2 A

Particulars of the Applicant

Name of Firm:

Legal status (e.g. sole proprietorship or partnership):

Country of incorporation:

Registered address:

Year of Incorporation:

Year of commencement of business:

Principal place of business:

Name, designation, address and phone numbers of authorised signatory of the

Applicant (Please enclose Power of Attorney):

Name:

Designation:

Company:

Address:

Phone No.:

Fax No. :

E-mail address:

If the Applicant is Lead Member of a consortium, state the following for each of

the other

Member Firms:

(i) Name of Firm:

(ii) Legal Status and country of incorporation:

(iii) Registered address and principal place of business.

27

Form 2 B

Financial Capacity of the Applicant

Sl.

No.

Financial Year Annual Turnover from

Advisory/ Consultancy

(Rs.)

Net Profit

(Rs.)

1 2014-15

2 2013-14

3 2012-13

Certificate from the Statutory Auditor

This is to certify that .................... (name of the Applicant) has the turnover from

Advisory/ Consultancy and Net Profit during each of the last three preceding

financial years

(Signature, name and designation of the authorized signatory)

Date: Name and seal of the audit firm:

Please provide audited financial for the last three financial years along with audited

Balance Sheets & Profit & Loss Accounts (brochures / printed material could be

provided as Annexure).

28

Form 3

Scope of work and the Concept of Plastic Park

(Include Details of Methodology and Detailed Work Plan / Time Schedule)

29

Form 4

Experience in handling infrastructure centric schemes / programmes of

Government of India Ministries / State Governments

Name of the

Project with

project

location

Sponsoring

Union

Ministries /

State

Governme

nts

Project

Cost &

Profession

al Fee

Received

Date of

Start &

Completion

of the

project

Description

of the

Services

performed

Current

Status

of the

Project

Any other

information

Documentary evidence/ completion certificate of the authorities concerned to be

provided.

30

Form 5

Experience in handling cluster infrastructure projects / parks in diverse

industrial sectors

Name of

the cluster

infrastructu

re projects /

parks with

project

location

Sponsoring

Union

Ministries /

State

Governmen

ts

Project

Cost &

Profession

al Fee

Received

Date of

Start and

Completi

on of the

project

Descripti

on of the

Services

performe

d

Curre

nt

Status

of the

Projec

t

Any other

informati

on

Documentary evidence/ completion certificate of the authorities concerned to be

provided.

31

Form 6

Experience in establishment of SPVs and monitoring SPVs in execution of

their business plans

Name of the

project / SPV with

project location

Sponsoring

Union

Ministries /

State

Governments

Sector /

Product

Description

of the

Services

performed

Any other

information

Documentary evidence/ completion certificate of the authorities concerned to be

provided.

32

Form 7

Experience in arranging statutory & environmental clearance and achieving

financial closure.

Name

of the

project

/ park

with

project

location

Sponsoring

Union

Ministries /

State

Governments

/ Others

Statutory

clearances

obtained,

with

details

Financial

closure

executed

by the

applicant

Other

Services

Any other

information

Documentary evidence/ completion certificate of the authorities concerned to be

provided.

33

Form 8

Curriculum Vitae (CV) For

PROPOSED PROFESSIONAL STAFF

Proposed Position:

Name of Firm:

Name of Staff:

Profession:

Date of Birth:

Years with Firm/Entity: Nationality:

Membership in Professional Societies:

Details of Tasks in this Assignment :

Key Qualifications:

34

[Give an outline of staff member’s experience and training most pertinent to

tasks on assignment. Describe degree of responsibility held by staff member

on relevant previous assignments and give dates and locations. Use about

half a page.]

Education:

[Summarize college/university and other specialized education of staff

member, giving names of institutions along with dates attended, and degrees

obtained. Use about one quarter of a page.]

Employment Record:

[Starting with present position, list in reverse order every employment held.

List all positions held by staff member since graduation, giving dates, names

of employing organizations, titles of positions held, and locations of

assignments. For experience in last ten years, also give types of activities

performed and client references, where appropriate. Use about three-

quarters of a page.]

Proficiency in Languages (Describe):

35

Certification:

I, the undersigned, certify that to the best of my knowledge and belief, the

above data correctly describes me, my qualifications, and my experience.

Date:

[Signature of staff member and authorized representative of the Firm]

Day/Month/Year

Full name of staff member:______________________________________

Full name of authorized representative: ___________________________

36

Appendix 3

Form 1

FINANCIAL PROPOSAL COVER LETTER

_________ 2016

Director

Room No.233, A-Wing,

Department of Chemicals and Petrochemicals,

Shastri Bhawan, New Delhi

Subject: Financial Proposal for appointment of Programme Manager for

Scheme for Setting Up of Plastic Parks.

Sir,

We, the undersigned, are pleased to submit our financial proposal for

“appointment as Programme Manager for Scheme for Setting Up of Plastic Parks

in accordance with your Expression of Interest and Bid vide your

Notice/Advertisement No.______________ dated ____ 2016.

Our Financial Proposal is unconditional and we acknowledge that any condition

attached to the financial proposal shall result in rejection of our proposal. Our

Financial proposal shall be binding upon us subject to the modifications resulting

from Contract negotiations, up to expiration of the validity of the Proposal.

We understand that you are not bound to accept any Proposal you receive.

Yours sincerely,

Authorised Signatory (In full and initials)

Name and Title of Signatory

Name of the Firm

Address

37

Form 2

FINANCIAL PROPOSAL

(for per project proposal)

Item

Cost

(Amount in Rs.)

Cost of Financial Proposal for Providing

Services as Programme Manager for

Scheme of Setting up of Plastic Parks being

implemented by Department of Chemicals

and Petrochemicals, Government of India

Note:

1. This cost is inclusive of professional fee, travel, and boarding and

lodging, communication and all other out of pocket expenses.

2. The Financial Proposal shall take into account all expenses and tax

liabilities. For the avoidance of doubt, it is clarified that all taxes shall be

deemed to be included in the costs shown under Financial Proposal.

Authorised Signatory (In full and initials)

Name and Title of Signatory

Name of the Firm

Address

Seal/ stamp of the Firm