a brief report of wcl purchasing system

1. WESTERN COALFIELD LIMITED
POWERING INDIA, EMPOWERING CAREERS
YOGESH CHOUDHARY
MT11IND013

2. A Brief Profile of WCL
 WCL is one of the eight subsidiary companies of Coal India Limited contributing 8.19% of the national
coal production
 The company come Into existence on 1 /11/1975 after re-organization of the Nationalized Coal Industry.
At that juncture , the operations of WCL were spread over in the states of Maharashtra Madhya Pradesh
and Orissa, organized into 2 Divisions and 12 operational Areas.
 The turnover of the company during year 2010-2011 was Rs.7073.44 crores . The net profit for the year
is Rs. 1067.97 crores againest budget of Rs.386.12 crores
 Today WCL have 59043 employees and has its headquarters at Nagpur Maharashtra .
 The Company is a major source of supplies of coal to the industries located in Western India in the States
of Maharashtra, Madhya Pradesh, Gujrat and also in Southern India in the States of Andhra Pradesh,
Tamil Nadu, Karnataka and Kerala. A large numbers of Power Houses under Maharashtra, Madhya
Pradesh, Gujrat, Karnataka, Punjab and Uttar Pradesh - Electricity Boards are major consumers of its coal
along with cement, steel, chemical, fertilizer, paper and brick Industries in these states.

3. Coalfields

4. WCL ORGANIZATION CHART

5. NEED

6. INDENT

7. • After approval of indent form from various
authority it sends for final approval of G.M.
• Budget is prepared
• Purchasing is start from here.

8. Types of Tender
OPEN TENDER
LIMITED TENDER
SINGLE TENDER

9. OPEN TENDER
Advertised Tender Enquiry (open )
•Tender value >= 25 Lac
•Publish at own website & National Informatics
centre website
•At least one National Daily having wide circulation
•Ad in Indian Trade Journal(IT)
•Three Weeks time from date of publication of bid

10. LIMITED TENDER
• Value up to 25 Lac
• Bid document should be sent to Regd. Suppliers by
Speed Post/Regd Post/Courier/ e-mail
• No. of supplier firms in Ltd. Tender should be more
than three
• Web based publicity
• Sufficient time should be given in Ltd. Tender

11. TENDER ENQUIRY
The invitation to tender and instruction to the
tenderers is an important document as the firm’s
proposal/tender is based on them. The tender
enquiry should, therefore ,be carefully prepared
setting out in clear terms the
requirements of the purchaser as to
quality,quantity ,delivery required etc.

12. Two Bid System
• Technical Bid (Tech. + Comm. Terms )
• Financial Bid (Item wise price )
(1) + (2) = (3) Main Envelop
 Firstly Tech. Bid shall be opened and evaluated
 Secondly Fin. Bid of Technically acceptable offer
should be opened & evaluated

13. EVALUATION PROCESS
• Time taken for evaluation and extension of tender
validity.
• Process of tender evaluation to be confidential until
the award of the contract is notified.
• Difference between TOC (Tender Opening
Committee) & TEC (Tender Evaluation Committee)

14. Process at a glance
TOC – Tender Opening Committee(Fin. Bid)
 APPROVAL
 TEC – Tender Evaluation Committee
 APPROVAL
ORDER IS GIVEN TO LOWEST BID
 AWARD OF CONTRACT
 SUPPLY ORDER

15. SUPPLY ORDER
• Description of items, quantity, price
• Price
• Excise Duty
• Sales Tax
• Freight & Insurance
• Packing & Forwarding charges
• AMC ( Annual maintenance contract )

16. SUPPLY ORDER
• Scope of contract
• Payment terms
• Contract period
• Delivery & Penalty
• Paying Authority
• Maintenance, % Availability & Penalty Thereof
• Performance Bank Guarantee ( PBG )

17. SUPPLY ORDER
• Guarantee / Warranty
• Security Deposit
• Installation & Comissioning & training
• Liquidated Damages / Risk purchase
• Force majeure
• After sales service
• Inspection

18. SUPPLY ORDER
• Lowest price Certificate
• Submission of Bills
• Identification mark
• Technical Brochure & Catalogue
• Consignee
• Local contact points for services
• EFT Detail ( Exchange Traded Fund )

19. SUPPLY ORDER
• Contractual Obligation
• TECHNICAL SPECIFICATION
• Consignee with address
• Format for performance bank gurantee bond

20. Bank Gurantee Bond

21. Bank Gurantee Bond

22. RECEIVING OF ORDER
• Supply to consignee address
• Delivery at area store
• Inspection by technical dept.
• S.R.V. is issued
• S.R.V. copies send to
Store, Issuing section

23. PAYMENT
STORES ACCOUNT
DEPT. SECTION
SUPPLIER