PURCHSING SYSTEM IN

Utility Powertech limited

( a joint venture of Reliance energy & N.T.P.C )
Under the guidance & Supervision
Of
Miss Vandana Sharma
Corporate Guide
M.r. A.K Mahadevan
H.O.D (Contracts & Materials ) ( Senior Faculty – Business
Utility powertech limited Economics)
( a joint venture of Reliance energy & N.T.P.C )

By :
SHOVIT SINGH
BBA/4539/06
 Corporate profile
About us • SERVICES OFFERED BY UPL

• The company was

incorporated in the • Operation & Maintenance services.
year 1995 .
• Renovation & maintenance services.
• It was promoted by
the directors from • Construction Services
Reliance energy &
N.T.P.C . • Civil construction

• UPL is leading in • UPL in distribution sector

Operation &
maintenance
services in a • Uttar pradesh Rural Electrification works.
country with its
excellence. • Engineering , Procurement & construction services .
INTRODUCTION

ABOUT

PURCHASING
SYSTEM
 (1.)

Pricing policy of purchasing

1. Ex – works Basis .

Case 1.

Case 2.

2. For dispatching period.

3. Fix destination site .

4. F.O.R (Free on road or Free

on rail) .
 (2.)

Purchasing
System

Pre purchase system

1.Requisition

2.Travelling requisitions

3. Enquiries
Ordering system
4. Salient Terms of Tender
Post purchase system
• Qualifying requirements 1. Placement of purchase order .
• Emd / Bid guarantee. 2. Dispatch Instruction .
3. LD clause. 1. Follow up procedure
• Price 2. Receipt
• Inspection requirements 4. Repeat order provision .
5. Arbitration 3. Invoice checking
• Payment terms
• CPG / SD
• AMC
 OBJECTIVE

• To Know The Basis Of Awarding

Purchasing Order On The Basis Of
Tendering Process In U.P.L
Step 1. Material requirement from Project execution
at site to contracts & material deptt in head
office .

Step 2. Selection of suppliers through prior

approval of competent Authority .

Step 3. Issue of Enquiries or Tender invitation .

Step 4. Formation of Tender committee.

Step 5. Bid opening on scheduled date , Preparation

of comparative statement of the Quotation
(offer) & awarding of purchasing order to L1 party.
 Research Methodology
• Research design
- Exploratory Research design .

• Tools of data collection

- Personal interview .
- Records of the Organization .
- Internet
 Analysis & Interpretation
• File no – 357
Procurement of 8 SWG G.I. Wire and
Barbed Wire in Sitapur district ,
Uttar pradesh – under PGCIL (Power
grid corporation of india ) Rural
Electrification Project of UPRE.
 Sequential Attachment of the
documents of File no. 315
• 1. Role of Material expediting department .

• 2. IOM (Inter office memo) + BOQ .

• 3. Selection of two vendors (Suppliers)

(a.) M/s Manohar lal Hira lal ltd – Ghaziabad .
(b.) M/s Swastik Wires - Raipur Chattisgarh .

• 4. Tender Invitation to both parties + General Terms & conditions of

tender .

• 5. Tender Committee Nomination .

• 6. Imitate copy of Quotation of Manohar Lal Hira lal ltd .

• 7. Tendering Opening & Comparitive Statement Formation .

• 8. About Tender committee .

• 9. Awarding of Purchase order to M/s Swastik Wires ltd – Raipur

Chattisgargh .
 Conclusion & Findings
• Though the M/s Manohar lal quoted the least
offer but late as Compare to M/s Swastik
Wires which quoted in time.

• M/s Manohar lal being late & L1 (quoted least

offer), considered by the management for the
rate comparison purpose only but not for
awarding purchasing so far.
• Tender Committee observation: TC observed
Rates quoted by M/S Swastik for both items
were on the higher side in comparison to
rates quoted by M/s Manohar lal Hira lal Ltd.
 • After prolonged discussion telephonically ,
the agency has agreed to revise their rates
as below .
No. of Name of the items Old Revised Rates.
item Rates .
1. SWG GI WIRE Rs 66.56 / kg Rs 58.00 / Kg

2. Barbed Wire Rs 68.82 / Kg Rs 64 / Kg

Note : The above rates are inclusive of taxes & duties and FOR
site.
• Awarding of purchase order to M/s Swastik
wires as on 17 may, 2008.

SL Code Description of items Qty. Unit of Unit Total

no. measurement pric amount
e
1. 8 SWG GI wire as 500 Kg 58 290000 / -
per PGCIL approved
specification

2. GI Barbed wire A-1 2000 Kg 64 128000 /-

Total Order value in Rs (Inclusive of all taxes &duties) 418000/-

and F.O.R .
Thanking you ,