National Thermal Power Corporation Limited

A Maharatna Company Policy for Withholding/Banning of Business Dealings – Rev 1 dated 16/09/2014 1 Policy & Procedure for Withholding and Banning of Business Dealings INDEX S.No. TOPIC 1) Introduction 2) Scope 3) Definitions 4) Withholding of business dealings 4.1 Grounds 4.2 Procedure 4.3 Notice of Default 4.4 Area of Operation 4.5 Effect of Withholding 4.6 Duration of Withholding 4.7 Revocation of Orders 5) Banning of Business Dealings 5.1 Grounds 5.2 Procedure 5.3 Show Cause Notice 5.4 Speaking Orders 5.5 Communication to Agencies 5.6 Period of banning 5.7 Area of operation 5.8 Effect of Banning 5.9 Process of reply 5.10 Hosting at NTPC Website 5.11 Appeal 5.12 Revocation 6) Participation of Agency under Different Name 7) Participation of Agency as an Associate/Collaborator/Sub-Vendor & Procurement in Operating Stations A Maharatna Company Policy for Withholding/Banning of Business Dealings – Rev 1 dated 16/09/2014 2 1. Introduction 1.1 NTPC Ltd. deals with Agencies, who are expected to adopt ethics of highest standards and a very high degree of integrity, transparency, commitments and sincerity towards the work undertaken. It is not in the interest of NTPC to deal with any Agency who commit deception, fraud or other misconduct of whatsoever nature in the tendering process and/or execution. NTPC is committed for timely completion of the projects within the awarded value without compromising on quality. 1.2 Since suspension/banning of business dealings involves civil consequences for an Agency concerned it is incumbent that adequate opportunity of hearing is provided and the explanation, if tendered, is considered before passing any order in this regard keeping in view the facts and circumstances of the case. 2. Scope 2.1 NTPC reserves its right to withhold or ban business dealings with any Agency, if such Agency is found to have committed misconduct or any of its action(s) fall into any such categories as laid down in this policy. 2.2 The procedure for (i) Withholding and (ii) Banning of Business Dealing with any Agency, has been laid down in these guidelines. 2.3 The provisions of this Policy supersede and will have overriding effect on all earlier guidelines, procedures & system circulars issued for the similar purpose. 2.4 This policy comes into force from the date of its issuance. 2.5 The provisions of this policy will be effective on investigations conducted or misconduct/irregularities noticed on the part of any Agency in all contracts awarded on or after the date of implementation of this policy and in the contracts under execution or contracts not yet closed, on the date of the implementation of this policy. 3. Definitions In these Guidelines, unless the context otherwise requires: i) Agency shall mean Contractor / Supplier / Purchaser / Bidder/ NTPC approved Sub-contractor of a Contractor’ to whom work has been awarded. It shall include, but not limited to, a public limited A Maharatna Company Policy for Withholding/Banning of Business Dealings – Rev 1 dated 16/09/2014 3 company or a private limited company, a firm whether registered or not, any individual, a cooperative society or an association or a group of persons engaged in any commerce, trade industry, or constituents of an unincorporated Joint Venture Company, etc. ii) Competent Authority and ‘Appellate Authority’ shall mean the following :- a) For Company (entire NTPC) wide Banning/Contracts awarded from Corporate Centre The CMD shall be the ‘Competent Authority’ for the purpose of these guidelines. Board of Directors / Sub-committee of the Board of Directors / Group of Directors, nominated for the said purpose shall be the ‘Appellate Authority’ in respect of such cases. b) For Region wide Banning /Contra