AAI Commercial Manual

8/8/2019 AAI Commercial Manual

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(Updated as on August 2005)

Airports Authority of IndiaDIRECTORATE OF COMMERCIAL SERVICESRajiv Gandhi Bhavan, Safdarjung Airport, New Delhi-110 003, IndiaPhone: 24699743/24649788/24694574 Fax: 24647283/24699743





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A N N E X U R E S

Contents Annexure Page No.Groups / Catego r i za t i on of Airports I 52-54Details of Contract & Policy Statement regardingperiodicity of contract, experience and eligibilityCriteria & the requirement of Security Deposit

II 55-83

Comparative Statement (To be prepared byTender Opening C ommittee)

III 84

Evaluation Sheet (To be prepared by Deptt. of Commercial)

IV 85-86

Forwarding Note (To be prepared by RED/APD) V 87-88Handing over/Taking over Repor t (To beprepared by Deptt. of Commercial)

VI 89

Notice for Outstanding Dues VII 90-91Notice for recoup ing of Security Deposit VIII 92Notice for Termination of Licence IX 93Bill Register Proforma X 94Contract Register Proforma XI 95Party Ledger Proforma XII 96

Application for allotment/renewal of b u i lt u p space & Hangar s p a c e

XIII 97-98

Specimen Tender Documents for Commerciall i c e n c e

XIV 99-125

Specimen Licence Agreement for spacea l l o t m e n t

XV 126-141

Form of Bank Guarantee XVI 142-144Delegation of Powers XVII 145-152

Subm iss ion of Solvency Certificate XVIII 153-154CVC’s letter No.98/ORD/1 dated 24.8.2000 XIX 155-156Ministry of F&CA’s letter No.153/191/2002-TPLdated 13.2.2003

XX 157-158



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INTRODUCTION

Consequent upon the formation of Airports Authority of India on 1.4.95 onmerger of the International Airports Authority of India and the National Airports

Authority, the need for having a unified Commercial Manual was considerednecessary. Accordingly, the unified Commercial Manual was prepared by a dulyconstituted Committee after taking into account the views of all the concernedDepartments/Regions/Airport Directors and after the approval of AAI Boardcirculated to all the Regional Executive Directors and Airport Directors of theInternational airports. The Manual has been subsequently reviewed after takeninto consideration the views of REDs / Airport Directors of the InternationalAirports and the review in the Manual has approved by AAI Board in its 67 th Board Meeting held on 9.5.2003. AAI Board has also decided that any furtheramendment to the Commercial Manual should be brought to the Board with therecommendations of Commercial Advisory Board for its approval.

The Manual deals with allotment of the built up space including Hangarsand other Revenue Contracts in respect of all the Domestic and InternationalAirports. It does not deal with the allotment of land and matters related to otherinfrastructures constructed on AAI’s land by licensees like; hotels/motels/flightkitchens/flying clubs/hangars etc. The guidelines and methodology requiredbeginning from earmarking the facility, fixing the MRLF and inviting andfinalizing the Commercial Tenders have been indicated in the Manual after

carefully considering the practical aspects suggested by Regions/Airports/CAB.

While preparing / reviewing this Manual all care has been taken to group theairports on the basis of present revenue and the revenue potential expected infuture. Different aspects of the revenue contracts have been covered exhaustively.However, in case, any aspect is not covered in the guidelines, the same may bebrought to the notice of Executive Director (Commercial) at CHQ for review andapproval by the Competent Authority. In order to judiciously take decisions ingenerating non-traffic commercial revenue, ample provisions have been made andleverage given for making local level decisions by involving the RegionalCommercial Advisory Committee.

This Manual supercedes all instructions and guidelines indicated in theprevious Manuals of IAD/NAD.



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CHAPTER - 1

OBJECTIVE

The ‘Commercial Manual’ has been designed to be a useful and handydocument in dealing with commercial l i c e n c e s a n d c o n t r a c t s for all theconcerned Departments in AAI.

• Having a uniform policy in handling commerciall i c e n c e s / c o n t r a c t s at all the International, Domestic Airports andCivil Enclaves.

• Maximization of the non-traffic revenue of AAI by :-

- Identifying new commercial avenues/optimum utilization of available space in the terminal buildings at a properly selectedlocation.

- Introduction of innovative commercial ventures on experimentalbasis without call of tenders for a short term upto one year and byregular contracts on a long term basis through call of tenders.

- Completion of the tendering process for a commercial c o n t r a c t / facility by adhering to a specified time schedule.

• Monitoring of the performance of the commercial contracts.

STRATEGY

Broadly, the following strategies have been laid down to achieve the aboveobjectives:

• Procedure for identification/creation of a new commercial facility.

• Procedure for tendering of a commercial facility at airport/civil enclave in atransparent manner



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• Procedure for the opening and evaluation of Technical/Financial Bids.

• Time schedule in processing the tenders.

• Defining the area and scope of the responsibilities of various concerneddepartments.

• Encouraging competition amongst the genuine parties by fixing the standardnorms of gross turnover related experience/eligibility criteria.

• Adhering to pre-tender/post-tender conditions.

• Setting up procedures for monitoring the performance of the licensee s.

SCOPE

The procedure laid down in the ‘Commercial Manual’ shall be applicable inrespect of the following commercial facilities/ l i c e n c e s :

• Allotment of built up space at airports and civil enclaves to airlines, regulatoryagencies and for facilitation purposes without call of tenders.

• Licensing of trading concessions at airports and civil enclaves through call of global tenders, limited tenders, open tenders and negotiations, like Duty FreeShops/shops/catering services /advertisement rights /car parks /visitors entryfee/vending machines/transport facilities/money exchange etc. etc.

TARGETS

• In case of airports/civil enclaves under the control of NAD, Airport Directorsmay take the stock of the existing commercial facilities vis-à-vis, the existingrevenue and fix target for next 3 to 5 years, which should be atleast 25% to

100% increase depending upon the t r a f f i c g r o w t h and commercialpotential of the particular airport.

• Airport Directors (APDs) of 5 International Airports under the control of IADmay also take the stock of the existing commercial facilities vis-à-vis, existingrevenue from all such facilities and fix target for the next 5 years forenhanc ing non - t r a f f i c r evenue . In case of Mumbai, Delhi and



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Chennai Airports, the increase could be 50% to 100% and for remainingairports the increase could be 25% to 100%.

• The above suggested target may be achieved by creation of new commercialfacilities as well as timely renewal of the existing contracts.

MONITORING OF TARGET ACHEIVEMENT & PERFORMANCE

• Regional Executive Directors would monitor and review the performance aswell as the quality of service of the commercial licenses g r a n t e d at theairports under their control.

• Member In charge of Commercial Deptt. would monitor and review theperformance as well as the quality of service of the commercial licenses

awarded at the IAD Airports.

ACCOUNTABILITY AND RESPONSIBILITY

Regional Executive Directors/Airport Directors shall be accountable formonitoring and reviewing the performance of the commercial contracts in thefollowing areas:-

• To achieve the targeted revenue from commercial facilities at airports undertheir control.

• Timely tendering action, e x e c u t i o n o f a g r e e m e n t and renewal of thelicence before the expiry of its term.

• Payment performance of the licensees. The quarterly reports of defaulters maybe sent to Commercial Department, CHQ.

• Compliance of the terms and conditions of the licence agreements by AAI. .

• Compliance of the terms and conditions of the licence agreement by Licensees.

• Compliance of the service standard by the Licensees as per norms laid down byAAI.

• Maintenance of a separate dossier of performance in respect of each licensee.



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• Action against the defaulting licensees.

• Submission of quarterly reports to Member In charge of Commercial Deptt. atHqrs. with regard to the performance of the licensees and action taken report.

• Quarterly report to Member In charge of Commercial Deptt. at CHQ with

regard to the creation of new facility vis-à-vis percentage increase in the non-traffic commercial revenue.

COMMERCIAL AUDIT

• Commercial Audit of all the commercial licences awarded at the internationalairports and major domestic airports shall be conducted once in a year by theInternal Audit Department of CHQ.

•

Pe r i o di c a l A u d i t o f c o m m e r c i a l l i c e n c e s a t t h e a i r po r t s t obe ca r r i ed ou t by t he r e spec t i ve r eg ions / i n t e rna t i ona la i rpo r t s by a t e am o f Sen io r Off i ce r s once eve ry t h r eem o n t h s a n d r e p o r t s u b m i t t e d t o CH Q.

• CHQ shou ld conduc t such aud i t s once i n s i x mon ths byse l ec t i ng a i rpo r t s f rom each r eg ion .

• Sen io r Off i ce r s on t ou r shou ld a l so i nc lude i n spec t i on o f c o m m e r c i a l l i c e n c e s a s a p a r t o f t h e i r v i s i t a n d s u b m i t

r e p o rt s f o r b e t t e r m o n i t o r i n g a n d f o l lo w u p .



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CHAPTER – 1A

IDENTIFICATION/CREATION OF COMMERCIAL

FACILITIES

1.1 New commercial facilities are to be created by:

(a) Creation of new space/new building.(b) Requirement/proposals from within AAI.(c) Requirements projected by user agencies/other sources.(d) Outcome of passengers’ opinion surveys conducted.(e) Space becoming available due to change/shift in operation.(f) Feed back received from passengers/visitors passing through airports.(g) Proposals received from concessionaires.(h ) Crea t i on o f i nnova t ive com merc i a l f a c i l i t y due t o

a l l -round t ec hno log i ca l deve lopmen t i n t he av i a t i ons e c t o r.

1.2 Actions to be taken:

(a) Detailed Drawings of a building (new/re-modified/expansion)prepared and approved by the Planning Department are to be sent toDepartment of Commercial at Hqrs. The Commercial Deptt. is toidentify the space/location of the facilities in consultation withREDs, Airport Director of the concerned airports, Executive Director(Operations), Executive Director (Land Management) and ExecutiveDirector (Architecture) or Executive Director (Planning), as may beconsidered appropriate.

(b) Feasibility of commercial proposals/ requirements is to be evaluatedfor:

i. Viability of the proposal from physical location and clearancefrom planning point of view.

ii. Usefulness of the service.



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iii. Financial viability - (Internal rate of return on capitalinvestment atleast @ 12% for commercial proposals). Itsimpact on other related existing facilities, if any.

iv. Security Clearance, wherever necessary.

v. Operational Clearance, wherever necessary.

vi. Clearance from regulatory agencies, wherever necessary.

1.3 New commercial facility is to be got approved as per prevailing Delegationof Powers (DOP).

1.4 The proposal is to be graded into one of the categories viz.:

(a) Mandatory(b) Aviation/safety related(c) Facilitation(d) Purely commercial and unforeseen facilities/activities.(e) Employees welfare-cum-commercial.



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CHAPTER - 2

EARMARKING THE FACILITY

2.1 Specify physical dimensions and precise location of the proposedscheme/facility. If a building, then access, utilities required, area of the plotis to be identified.

2.2 Where it is a part of the Master Plan, indicate the purpose for which it isearmarked.

2.3 (a) REDs/APDs/Station In-charge are to ensure site clearance for newContracts.

(b) In respect of existing facility, which is proposed for tendering, ensurethat site is ready in all respects and free from all encumbrances.

2.4 REDs/APDs/Station In-charge are to ensure ‘No Objection Certificate’ of allthe concerned Departments within AAI viz. Planning, Engineering (Civil &Electrical), Operations (including Fire & Electronics), as may be consideredappropriate. If required, ‘No Objection Certificate’ of other concernedDepartments like; DGCA, BCAS, Police, Security, Health and any otherlocal authorities within the city, as may be considered appropriate, is to beobtained.

2.5 REDs/APDs/Station In-charge are to ensure for the availability of water,electricity and outlet for disposal of water, removal/disposal of garbage andservice lift, other basic facilities etc., as the case may be. (AAI is to providewater/electricity/sewerage disposal at a single point at the site of the tradingfacility. The licensee is required to undertake further distribution of thefacility at his own cost).



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CHAPTER - 3

FIXATION OF MINIMUM RESERVE LICENCE FEE /EARNESTMONEY DEPOSIT/REBATE DUE TO BAN ON VISITORS

ENTRY

MININUM RESERVE LICENCE FEE

3.1 Department of Commercial (CHQ)/REDs/APDs/Station In charge, as thecase may be, are to determine/review the Minimum Reserve Licence Fee(MRLF) based on any one of the following parameters:

(a) Space rent on prevailing rate.

(b) Licence fee of any similar existing facility at the same airport.

(c) Last licence fee received for the similar facility + 10% increase.

(d) Change in opportunity cost of the space earmarked due to change inbusiness potential.

(e) Return @ 12% of the average gross turnover during the currency of the licence period can also be applied for the purpose of computationof MRLF for the commercial facility at airports under Group ‘A’ &‘B’. This percentage can however be reviewed by RCAC keeping inview the ground realities.

In case of airports under Group ‘C’ & ‘D’, RCAC/ LCAC may adoptthe percentage of return below 12% keeping in view the groundrealities.

(f) In case of any new commercial facility at an airport, where MRLFcannot be determined by the above suggested methods, market rateand local conditions is also to be considered as a guiding factor.

(g) Commercial potential of the facility.

(h) Periodicity of the contract.



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(i) Expected traffic growth.

3.2 The MRLF so determined on the basis of above principle is to be consideredand the most appropriate option approved by L o c a l C o m m e r c i a lAdvisory Commit tee (LCAC)/ Regional Commercial AdvisoryCommittee (RCAC) / Member (In-charge) / Commercial Advisory Board(CAB), as the case may be shall be adopted.

Clarifications:

(a) LCAC /RCAC/ is to approve MRLF, in respect of ongoing commercialactivities at International Airports / Regional Airports irrespective of theannual value of the contract, as per para 3.1, Chapter 3.

(b) LCAC /RCAC/ Executive Director (Commercial) / Member (incharge) / Chairman / CAB will give approval of MRLF for new commercial facilitiescreated for the first time, in terms of DOP.

3.3 In case of (i) Non purchase of the ‘Tender Documents’; (ii) Purchase of tender documents by single party; (iii) Non participation in the tenders afterpurchase of tender documents by all, the last date of sale/receipt of thetenders may be extended twice by another 15 days in each attempt.

3.3.1 In case, there is no response after extending the last date of sale / receipt of tenders twice, single tender, if any is to be considered for award of contractprovided the offer is not less than MRLF.

3.3.2 The reasons for non participation in the tenders like; (a) high rate of MRLF;(b) lack of the parties with prescribed experience etc. may be ascertained forreview.

3 .4 In ca se t he r e i s no r e sponse fo r a com merc i a l f a c i l i t y,

even a f te r adver t i s ing twice , RCAC/LCAC, dependingu p o n t h e v a l u e o f t h e c o n t r a c t , m a y a p p r o v e c a l l i n gt ende r s w i thou t p r e sc r ib ing any MRLF.

3.5 In case, a contract has been terminated by the licensee w i t h i n 50% periodof the agreement, the facility may be re-tendered on the basis of originalMRLF (i.e. the amount adopted initially at the time of inviting tenders



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during the current ongoing period of the contract), instead of on the lastreceived licence fee.

EARNEST MONEY DEPOSITS [EMD] (by way of Demand Draft/Pay Order)

Earnest Money Deposit shall be fixed as under :

Minimum Reserved Licence Fee(MRLF) [Rs. in lacs per annum]

Amount of EMD

Upto Rs.10.00 lacs Rs.5000/- or 5% of the annual MRLF,whichever is higher.

Rs.10.00 lacs to Rs.50.00 lacs Rs.50,000/- + 3% of MRLF beyondRs.10.00 lacs per annum.

Rs.50.00 lacs and above Rs.1,70,000/- + 2% of MRLF beyondRs.50.00 lacs per annum.

N.B. Earnest Money Deposit shall be subject to rounding off upto 3 digits.

REBATE IN THE LICENCE FEE

The rebate in the licence fee can be granted, if there is a ban imposed byGovt./BCAS/AAI on visitors entry at airport.

3.6 Where a facility serves the visitors and the passengers, 20% rebate in the

prevailing amount of licence fee is to be permitted pro-rata for the banperiod.

3.7 The rebate as above is to apply to all the commercial facility located in thecommon passengers and visitors areas.

3.8 Where a facility serves the visitors only, no licence fee is to be charged forthe ban period. Proportionate rebate in the licence fee is to be given inrelation to the ban period.

3.9 No licence fee is to be charged in case of suspension of the operation of theairport.

3.10 The rebate in the licence fee as above is to be granted only for the ban periodof visitors or for the period of suspension of the operation exceedingcontinuously for 72 hrs or 3 consecutive days in a month. (day shallcorrespond to the local watch hours)



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3.11 No rebate is to be given in respect of space licence fee if applicable in

addition to the commercial licence fee, as per terms and conditions of theagreement.

3.12 Where rebate/waiver in the licence fee has been granted due to the above

reasons, no extension of pe r iod of contract is to be given.



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CHAPTER - 4

SELECTION CRITERIA

4.1 MANDATORY (AGENCIES WITHOUT CALL OF TENDER)

(a) Regulatory Agencies and essential services.(b) Airlines(c) Facilitation

(a) REGULATORY AGENCIES/ESSENTIAL SERVICES

Immigration, Customs, Health, Security, Meteorological Deptt. andNationalised Banks for collection of FTT & Customs Duty.

(Space rent and electricity as applicable and decided by AAI to relevantcategories for the area occupied shall be applicable and separate electricmeters are to be provided in each case. However, for the public utility areas

viz. space allotted to Govt. Deptts. like; Customs, Immigration, Police, PlantQuarantine, Health etc. for the purpose of check-in-counters, appraisal areas,no rent and electricity is to be charged)

(b) AIRLINES (No tender action is required)

The airlines may be categorized as (i) all operating airlines; (ii) Regular Air-Taxi Operators and (iii) Non-Scheduled Operators.

The quantum of space is to be determined keeping in view thetraffic/operation of an operator.

Deptt. of Commercial at airport is to maintain proper record/register of theproposals received from airlines for allotment of space and a separateregister is to be maintained for each category of airline.

The allotment of space to the airlines is to be made on first-come-first-servebasis and subject to the availability of space. However, over riding priority



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may be given to the operating airlines/regular air-taxi operators over thenon-scheduled operators.

(c) FACILITATION (WHERE THE COMMERCIAL INTEREST OF THEAGENCY OPERATING THE FACILITY IS NOT INVOLVED

(No tender action is required. Normal prevailing licence fee for space to becharged)

Tourist Information Counters (i.e. Govt. of India Tourist Deptt., I.T.D.C.,State Govt. Tourist Deptt. where the airport is located, AccreditedAssociation of Press Reporters, Postal and Telegraph, Telecommunications,Nationalised Banks (for the purpose of Duty collection or normal bankingfacility to staff), Railways Reservation and any other similar facility.

4.2 PURELY COMMERCIAL FACILITIES

4.2.1 GLOBAL TENDER

This will apply to Duty Free Shops or any other commercial facility, as maybe determined by the Management of AAI.

4.2.2 LIMITED TENDER

W h e r e t h e c o m m e r c i a l c o n t r a c t s a r e t o b e o p e r a t e dth rough Exc lus ive Branded Supp l i e r s /manufac tu r e r s andGove rnmen t Au tho r i s ed Agency, such a s fo r ;

Ce l lu la r Phone se rv ices , ATM, Car Disp lay and o ther exc lu s ive b r anded s e rvi ce s .

4.2.3 NEGOTIATED LICENCES

This will apply to:

Handicraft shop to State Govt. Emporium as well as State Govt. ownedproducts in the State Capital, where the airport is located (e.g. allotment of counter to HPMC at airports in the State of Himachal Pradesh (HP),allotment of Handicraft Shop to Delhi Emporium at IGI Airport, allotment



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of shop to UP Emporium at Lucknow airport and so on) and Khadi Village& Industries Commission (KVIC) at any of the airports.

However, Chairman, AAI may exercise his powers for allotting a tradingconcession at an airport to any Central/State Govt. Deptt. on negotiatedterms.

4.2.4 OPEN TENDERS

This will apply to:

Catering facility located outside the Terminals, Indoor and OutdoorAdvertisement Rights, Advertisement on passengers baggage trolleys,advertisement on flight information display system, construction &management of public convenience vis-à-vis advertisement rights,Installation of Vending Machines, Shops other than Duty Free, Transportfacility, Left Luggage, Car Park, Weighing Machines, Payphones,Dormitory, Photostat, Packer service, Communication service, HotelReservation, Money Exchange, Insurance Counters, Grass Cutting andAgricultural Rights and any other contract not specified in the list of contracts mentioned under the head of ‘GLOBAL TENDER’ and ‘LIMITEDTENDERS’ above as well as any other commercial contract as may bedecided by the Competent Authority from time to time.

(a) Wide publicity would be given to attract fair competition.

(b) No press notification is to be issued for a contract carrying annualvalue upto Rs. 2,40,000/- in case of airports under Group ‘A’,Rs.1,20,000/- in case of airports under Group ‘B’ and Rs.60,000/- incase of airports under Group ‘C’ & ‘D’. The mailing list of the partieshaving experience in the particular field of activity with due approvalof RCAC is to be maintained and updated from time to time by Deptt.of Commercial at airport, in addition to displaying the NIT on NoticeBoard for the purpose of inviting tenders in such cases. Therequirement of the documents as per Chapter-5.1.1 (b), (c) & (d) maynot be insisted upon. However, the documents concerning relevantexperience as well as EMD are to be obtained.

4.2.5 Two envelope system is to be followed as per following:

- Envelope ‘A’ duly sealed containing Technical Bid.- Envelope ‘B’ duly sealed containing Financial Bid



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- Master Envelope duly sealed containing Technical Bid in Envelope‘A’ & Financial Bid in Envelope ‘B’

4.3 EMPLOYEES WELFARE-CUM-COMMERCIAL

This will apply to the facilities provided in the Housing Colonies like;

General Stores, Chukki Shops, Meethai & Bakery Shops, Payphone, Milk Booth, Vegetable Shops, Cable T.V., Chemist Shops etc.

(Licence for the above facilities can be granted without call of tenders toAAI Employees Co-operatives, Kalyanmai. In case of non-availability of such establishments, licence is to be granted by circulation of the NIT as permailing list of parties and by placement of NIT on Notice Board etc.)

4.4 RCAC is also authorised to grant licence on experimental basis upto amaximum of 12 months for innovative commercial venture, if necessary byentering into short-term agreements/contracts. Special survey could becarried out for use on such facilities for future tendering, if required beforethe expiry of the experimental period of 12 months. Care is to be taken toensure that timely action is taken for tendering/closure of the temporarycontracts.

4.5 Adequate number of coin/card operated PCO/STD/ISD can also be providedthrough MTNL/C-Do T /BSNL etc.

4.6 The licence for Drinking Water and common beverages of Tea/Coffee canalso be granted directly to the branded manufacturers (to be operated bythem directly without involvement of any franchise at ‘Fair Price’ on ‘NoProfit No Loss’ basis). However, only logo and name of the manufacturingfirm should be indicated.



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CHAPTER - 5

REQUIREMENT OF DOCUMENTS

5.1 Envelope ‘A’ (Technical Documents)

5.1.1 Tenders where MRLF is more than Rs.0.20 lacs per month but less thanRs.0.50 lacs per month, the following technical documents are required to befurnished by the tenderer(s) in Envelope ‘A’:

(a) Relevant experience as per the terms and conditions of Notice Inviting

Tender.(b) Affidavit declaring assets details and liabilities details. The net worth

may not be less than the annual quoted value.(c) Partnership Deed in case of partnership firm.(d) Earnest Money Deposits.(e) No Dues Certificate.

5.1.2 Tender where reserve price is more than Rs. 0.50 lacs per month, thefollowing documents are required to be furnished by the tenderer(s) inEnvelope ‘A’:

(a) Relevant experience as per the terms and conditions of Notice InvitingTender.

(b) Last financial year's income-tax return.(c) (i) Profit & Loss Accounts/Balance Sheet/Annual Report as may

be applicable for the last completed financial year duly certifiedby the Chartered Accountant or any other authority approvedfor this purpose.

(ii) In case of Registered Company, Annual Report is to be

submitted.

(d) Assessment Order for last completed assessment. In case noassessment is completed, an affidavit to this effect should befurnished.

(e) Attested copy of Memorandum and Articles of Association in case of R egistered Companies.

(f) By laws in case of cooperative societies.



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(g) Partnership Deed in case of P artnership firm.(h) Earnest Money Deposits.

5.2 In case of contract carrying MRLF of Rs. 12 lacs per annum and above,solvency certificate equal to an amount of Security Deposits calculated onMRLF is to be furnished from a Nationalised/Scheduled Bank (Annexure

XVIII).

5.3 Envelope ‘B’ (Financial Documents)

5.3.1 Department of Commercial to clearly spell out all the terms and conditionsand other requirements of the tenders. Tenderers are not to put any conditioneither in Envelope ‘A’ or in Envelope ‘B’, failing which their tender shall beliable to be rejected.

5.3.2 Tenderers are to indicate the number of documents they had submitted as apart of their Technical/Financial Bid. Tenders should be signed/initialed oneach page of the documents in Envelope ‘A’ & ‘B’.

5.4 Sealed Envelope ‘A’ (Technical Bids) and sealed Envelope ‘B’ (FinancialBids) are to be put and sealed in a separate ‘Master Envelope’.

5.5 In case the documents submitted by the tenderer are false, incorrect, thetender will be liable to be rejected. The financial viability as per prescribedcriteria, if not fulfilled, the tender can be rejected.



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CHAPTER - 6

PREPARATION OF NIT/TENDER DOCUMENT

6.1 A specimen copy of standard tender documents is enclosed.

6.2 No change in the terms & conditions indicated in the basic tender documentset is to be made. However, any other additional terms & conditionsdepending upon the nature and requirement of the contract (e.g. procedurefor the disposal of the garbage in case of Garbage Disposal RevenueContract, requirement of cars/coaches and procedure to be followed withregards to the contract concerning the transport business at airport and soon), Department of Commercial at RHQ/Airport may indicate all suchadditional terms & conditions in the Annexure forming a part of the standardlicence agreement.

6.3 All the pages of each tender document are to be numbered and signed by an

officer of the Department of Commercial/Officer-in-Charge of CommercialDepartment.

6.4 The Notice Inviting Tender (NIT) is to be prepared by CommercialDepartment and is to be approved by RED/APD/ED (Commercial)/ Competent Authority, as the case may be, depending upon the value of thecontract.

6.5 As far as possible, a single ‘Notice Inviting Tender’ for advertisement is tobe issued covering at least 3 to 4 commercial activities.

6.6 Award letter is to be made as a part of Licence Agreement.



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6.7 The following schedule is to be followed for completion of the tenderingprocess:

Nature of Tender

Publicity(from the date

of the

publication of NIT)

Sale of Tender

Documents

(from the last date of

Publication)

Receipt of Tenders /

Opening of

Technical Bid(from the last

date of sale of tenders)

TechnicalEvaluation/ Opening of

Financial Bid(from the date of opening of

Technical Bids)

(1) (2) (3) (4) (5)Global Tender 45 days 15 days 10 days Max. 30 daysOpen Tender 21 days 10 days 07 days Max. 30 daysLimited Tender - 10 days 07 days Max. 15 days

Evaluation of Financial Bids/ Decision for award (From the date of

the opening of Financial Bids)

Completion of all the formalities bythe successful Tenderers (From the date of the letter of intent/ award)

(6) (7)40 days 30 days40 days 15 days20 days 15 days

6.8 All the NIT shall have a specific Clause stating that any or all tenders maybe rejected without assigning any reason.



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CHAPTER - 7

SALE OF TENDER

7.1 Tender documents are to be sold by the Commercial Manager/Sr.Commercial Manager or any other Officer heading/looking after thefunctions of the Commercial Deptt at the respective Airport/Station.

7.2 One party is to be sold only one tender document for an identical licence in aseparate designated building at an airport. In this case, where the soleproprietor of more than one firm is the same person, it will be considered asone legal entity for the purpose of one tender.

7 .3 In add i t i on t o t he No t i ce Inv i t i ng Tende r s be ingpub l i shed i n va r ious Newspape r s fo r Commerc i a lc o n t r a c t s , t h e c o m p l e t e t e n d e r d o c u m e n t s a l o n g w i t hthe app l i ca t i on fo rm i s r equ i r ed t o be pub l i shed on t heWebs i t e o f AAI . The pa r t i e s mak ing u se o f t h i s webs i t esha l l no t be a sked t o ob t a in any o the r r e l a t edd o c u m e n t s b y D e p a r t m e n t o f C o m m e r c i a l m a n u a l l y f o r t he pu rpose o f pa r t i c ipa t i ng i n t he t ende r p roces s . A l lt he t ende r documen t s up - to -da t e shou ld r ema inava i l ab l e on t he Web s i t e and sha l l be equa l l y l ega l l yva l i d fo r pa r t i c ipa t i on i n t he t ende r p roces s a s manua ld o c u m e n t s o b t a i n e d f r o m d e p a r t m e n t t h r o u g h m a n u a lp roces s .

The Comple t e app l i ca t i on fo rm shou ld be madea v a i l a b l e o n t h e w e b s i t e f o r p u r p o s e o f d o w n l o a d i n gand app l i ca t i on made on such a fo rm sha l l becons ide red va l i d fo r pa r t i c ipa t i on i n t he t ende r p roces s .



24

The pa r t i e s sha l l pay t he p r e sc r ibed cos t o f t ende r documen t s by ca sh /d ra f t on o r be fo re t he l a s t da t e o f s u b m i s si o n o f t h e a p p li c a t i o n f o r m & b i d d oc u m e n t s .

I n c a s e t h e p a r t y i n t e n d s t o p u r c h a s e t h e t e n d e r

documen t pe r sona l l y, t ende r documen t s a r e t o be so ldby Commerc ia l Manager /Sr. Manager o r any o ther o f f i c e r head ing / look ing a f t e r t he func t i ons o f t heC o m m e r c i a l D e p a r t m e n t a t t h e r e s p e c t i v e A i r p o r tw i t h o u t i n s i st i n g o n a ny d o c u m e n t .

7 . 4 I n c a s e o f t e n d e r s w h i c h a r e t o b e i n v i t e d f o r t h ecommerc i a l f a c i l i t i e s a t t he A i rpo r t s /C iv i l Enc l avescon t ro l l ed by NAD, no pa r ty i s e l i g ib l e fo r c ons ide ra t i on ,( a company / f i rm o r an i nd iv idua l ) f a l l i ng unde r t hef o l lo w i n g c a t e g o r i e s :

(a ) Hav ing ou t s t and ing dues i n r e spec t o f any o f t heIn te rna t iona l /Domes t ic Ai rpor t s /Civ i l Enc laves

con t ro l l ed by NAD in a pa r t i cu l a r r eg ion whe re t het e n d e r s h a v e b e e n i n v i t e d e x c e p t w h e r e t h e d u e sp e r t a i n t o c u r r e nt m o n t h ’s l i c e n c e f e e .

(b ) Dep t t o f Commerc i a l a t RHQ i s t o ma in t a ind a t a b a s e i n r e sp e c t o f a l l t h e c o m m e r c i a l c o n t r a c ta t a i rpo r t s unde r t he i r r eg ion i nc lud ing t he de t a i l so f ou t s t and ing dues aga in s t t he d i f f e r en t l i c ensees .

The de t a i l s may be sha red be tween t he r eg ionsa n d w i t h t h e A i r p o r t D i r e c t o r o f I A D I n t e r n a t i o n a lA i rpo r t s a s we l l a s Dep t t . o f Commerc i a l (CHQ) a ts h o rt n o t i c e o n r e q u e s t .

7 . 5 I n c a s e o f t e n d e r s w h i c h a r e t o b e i n v i t e d f o r t h ec o m m e r c i a l f a c i l i t i e s a t t h e 5 I n t e r n a t i o n a l A i r p o r t s



25

con t ro l l ed by IAD, no pa r ty i s e l i g ib l e fo r cons ide ra t i on(a f i rm o r an i nd iv idua l ) f a l l i ng unde r t he fo l l owingc a t e g o r i e s :

( a) Hav ing ou t s t and ing dues i n r e spec t o f 5

I n t e r n a t i o n a l A i r p o r t s a s a w h o l e e x c e p t t h e d u e sp e r t a i n i n g t o c u r r e n t m o n t h s l i c e n c e f e ec o l l e c t i v e l y.

(b) Comm erc i a l Dep t t . a t 5 In t e rna t i ona l A i rpo r t s a r et o m a i n t a i n c o m p l e t e d e t a i l s o f t h e d i f f e r e n tc o m m e r c i a l c o n t r a c t i n c l u d i n g t h e o u t s t a n d i n gdues aga in s t t he conc e rned l i c ensees . The de t a i l sm a y b e s h a r ed w i t h t h e Co m m e r c i a l De p t t . a t o t h e r In te rna t iona l Ai rpor t s ( IAD) , REDs & Dept t . o f Comm erc i a l a t CHQ, a t sho r t no t i c e on r eques t .

7 .6 In a l l cond i t i ons a s men t ioned sub -pa ra 7 .4 & 7 .5 , adec la ra t ion on No n-J ud ic ia l S tam p Paper o f Rs .10 /- du lya t t e s t ed by No ta ry Pub l i c i s a l so t o be ob t a ined f rom

t h e t e n d e r e r i n d i c a t i n g ( i ) t h e d e t a i l s o f t h e i r c o n t r a c ta t a l l t he a i rpo r t s o f AAI a s a who le ; ( i i ) t he l i ab i l i t y o f paymen t o f d i spu t ed /un -d i spu t ed dues o f AAI .

7 .6 .1 In t e rm s o f t he r equ i r emen t men t ioned i n Chap te r 7 .6 , t h e a w a r d o f c o n t r a c t t o t h e s u c c e s s f u l t e n d er e r a ta n y o f t h e a i r p o r t s s h a l l b e s u b j e c t t o t h e p a y m e n t o f und i spu t ed dues (no t f o rming a pa r t o f an a rb i t r a t i on

case ) o f AAI a s a w ho le .

7 .7 The d i spu t ed dues r e f e r r ed t o an a rb i t r a to r f o r a d j u di c a t i o n a s p e r t e r m s a n d c o n d i t i o n s o f t h e l i c e n c ea g r e em e n t m a y n o t f o r m a p a r t o f t h e o u t s t a n d i n g d ue sfo r cons ide ra t i on fo r t he t ende r. How eve r, t he pa r ty i sn o t e l i g i b l e f o r t h e c o n t r a c t i n c a s e A r b i t r a t o r h a s



26

pronounced t he award i n f avou r o f AAI , un l e s s d i r ec t edby a Cour t o f Law .

7 .8 In add i t i on t o above , any pa r ty (a f i rm o r an i nd iv idua l )f a l l i ng unde r t he fo l l ow ing ca t ego r i e s a r e no t e l i g ib l e fo r

c o n s i d e ra t i o n o f t h e t e n d e r:

(a ) De-bar red /b lac k l i s t ed by CBI or AAI or Unde r t ak ings / Depa r tmen t s l i ke ; Ra i lways ,De fence , o r any o the r Depa r tm en t o f Govt . o f I nd i a ,St a t e Govt . Dept t . o f Comm erc ia l a t RHQ / Ai rpor t si s t o m a in t a in r ec o rds o f such deba r r ed /b l ack -l i s t edp a r t i e s i n c o n s u l t a t i o n w i t h Vi g i l a n c e D e p t t . a tCHQ. In th i s regard , Dept t . o f Vig i lanc e a t CHQm a y f o r w a r d a n u p d a t e d l i s t t o t h e R e g i o n s /A i rpo r t s .

(b ) Pa r t i e s fac ing ac t i on unde r PPE Ac t , w i th AAI .

(c ) Pa r t i e s e i t he r an i nd iv idua l o r a bus ine s s

e s t ab l i shm en t , w ho has been o rdered by a Cour t o f L a w t o p a y t h e o u t s t a n d i n g d u e s o f A A I a t a n y o f t he a i rpo r t s a s a w ho le and has no t pa id such duesto AAI . The a s soc i a t ed f i rms /subs id i a r i e s o f suchde fau l t i ng pa r ty sha l l a l so no t be e l i g ib l e fo r cons ide ra t i on o f t ende r.

[A dec l a r a t i on t o t he e f f ec t he does no t f a l l unde r

t he ca t ego r i e s (a ), (b ) & (c ) above i s t o be fu rn i sheda t t h e t i m e o f s u b m i t t i n g t h e t e n d e r.]

7 .9 In ca se t he i n fo rma t ion i s found t o be i nco r r ec t /f a l s e ,t ende r o f such pa r ty i s t o be r e j ec t ed by g iv ing t hereasons and Earnes t Money Depos i t (EMD) for fe i t edbes ide s deba r r i ng t he pa r t i c ipa t i on o f such pa r ty i n



27

AAI’s t ende r fo r a spec i f i c pe r iod t o be dec ided by t heA u t h o r i t y a u t h o r i s e d t o a p p r o v e t h e t e n d e r s .

7 .10 The consequen t i a l pena l a c t i on fo r f u rn i sh ingfa l s e /i nco r r ec t i n fo rm a t ion i s a l so t o be i nd i ca t ed i n t he

NIT.

7 .11 Prope r r ec o rd o f t ende r s dow n loaded and so ld m anua l lyi s t o be ma in t a ined i n a spec i f i ed r eg i s t e r du lya u t h e n t i c a t e d b y t h e O f f i c e r h e a d i n g t h e C o m m e r c i a lDe p a r t m e n t i n d ic a t i n g t h e f o l l o w i n g i n fo r m a t i o n :

(a ) Ser ia l Num ber.(b ) N a m e an d a d d r es s o f t h e p ar t y w h o s u b m i t t e d t h e

t e n d e r d oc u m e n t s .(c) W h e t h e r t e n d e r d o c u m e n t s d o w n l o a d e d f r o m t h e

Webs i t e o r pu rchased d i r ec t l y f rom thed e p a r t m e n t .

7.12 The Register as above should not be signed/authenticated by the tenderer orhis representatives. However, reasons for not issuing the tender documents

are to be indicated to the party on request in writing.

7.13 The signature /authentication of the party purchasing the Tender Documentsis also to be taken on the letter of application.

7.14 Cost of Tender Document (Non-refundable)

(a) Upto Rs.5 lacs per annum Rs.250/-

(b) Rs.5 lacs to Rs.10 lacs per annum Rs.500/-

(c) Rs.10 lacs to Rs.50 lacs per annum Rs.3000/-

(d) Above Rs.50 lacs per annum Rs.10000/-

(e) Cost of tender documents is to be refunded to the concerned party incase AAI decide to cancel the tenders before its receipt / opening dueto administrative reasons.



28

CHAPTER - 8

RECEIPT OF TENDER

8.1 Date and time prescribed for sale/closing/opening of tenders should beadhered to.

8.2 Tender box to be kept in a secured place preferably in the chamber of Headof Commercial Department. The tender received before due date and timeby post is to be put into the Tender Box.

8.3 Lock of tender box to be sealed.

8.4 Closing of tender box on prescribed time (closing to be signed by concernedofficer and in the presence of one or two participants, if available) and theopening in the tender box is to be closed by pasting it.



29

CHAPTER - 9

OPENING OF TENDERS IN MASTER ENVELOPE AND

EVALUATION OF TECHNICAL BIDS IN ENVELOPE ‘A’

Opening of Tenders

9.1 Tender Opening Committee is to be constituted with the prior approval of Chairman/whole time Member heading Commercial Deptt. at Hqrs.,Regional Executive Director at Region, Airport Director/Station Inchargeat Airport/ Station. Any change in the constitution of the Committee maybe approved in advance.

9.2 (a) In respect of Airports under Group ‘A’ & ‘B’ minimum 3 membersare to be nominated i.e. Head/In charge of Commercial Department atRHQ/Airport/CHQ as a mandatory requirement, a representative fromFinance & Accounts Deptt. and a representative from any otherDepartment.

(b) In case of Airport under Group ‘C’ & ‘D’, a Committee of threeofficers, which inter-alia should include a representative of Finance

Deptt., if available, to be appointed by Airport Director/Station-in-Charge.

9.3 Tenders in Master Envelope are to be taken-out from tender box in thepresence of authorised representatives of the tenderers available andparticulars recorded in a Register.

9.4 All the Master Envelopes are to be checked and serially numbered.

9.5 Names of the participants to be announced to confirm the count of tenders.

9.6 The Master Envelope is to be opened and Technical Bids in Envelope ‘A’and Financial Bids in Envelope ‘B’ taken out, counted and seriallynumbered. The Financial Bids in Envelope ‘B’ as received from thetenderers is to be separated and sealed in a cover to be duly signed by allthe members of the tender opening committee and two representatives of



30

the tenderers subject to their availability and kept in the custody of adesignated officer of the Department of Commercial.

9.7 The opening process of Technical Bids in Envelope ‘A’ is to be startedserially. The single tender, if any, is also to be opened and Technical Bidevaluated before opening of the Financial Bid in Envelope ‘B’.

9.8 All papers comprising each tender document to be serially numbered andtotal number of documents recorded on first page of the tenderdocuments.

9.9 All the pages are to be initialed by the members of the tender openingcommittee. However, in respect of printed Annexure/booklets/brochuresthe same may be initialed on the first page of the respective documentsby the Committee. The Committee is to ensure Correction Insertion andOver-writing (CIO).

9.10 A statement of the Technical Bids consisting of the following documents,as may be applicable in terms of NIT is to be prepared and signed by themembers of the tender opening committee:

(a) Name and Address of the party, name of the partners (in case of Partnership firm or directors in case of Company) or name of Proprietors in case of Proprietary firm.

(b) Whether the EMD has been paid as per requirement of NIT.

(c) Documents in support of turnover submitted.

(d) The proof of being Income Tax assessee be enclosed alongwith thesupporting documents.

(e) Check whether parties fulfill the experience criteria as per NIT.

(f) Any other relevant information/documents as mentioned in NIT.

9.11 The technical bids are to be evaluated by the Department of Commercialstrictly as per the stipulations/requirements of the tender documents. Theproper verification of the technical documents such as; (a) details of relevant experience; (b) other tax related documents; (c) profit & lossaccount and turnover of the tenderers; (d) Bank Solvency; (e) EarnestMoney Deposit and (f) any other relevant documents as may beapplicable in terms of Chapter-5 may be carried out for its correctness.



31

The clarifications, if any in relation to any of the technical documentsfurnished in Envelope ‘A’ (Technical Bid) by a tenderer are to beobtained within 5 days from the date of the opening of the Technical Bid.However, no new documents may be entertained. The credentials of thetenderers in doubtful cases are to be verified and legal views whereverrequired are to be obtained. The whole exercise is to be completed in a

shortest period but not exceeding 15 days from the date of opening of theTechnical Bids.

9.12 Department of Commercial is to carry out evaluation andrecommendations on the tenders and submit the file to Deptt. of Financealongwith complaints made by any tenderer, if any and its disposal.Finance Department is to carry out the scrutiny of the relevant documentsconcerning Finance Deptt. and return the file with comments / concurrence to Commercial Deptt. within 10 working days.

9.13 The Commercial Deptt. is to submit the documents to the whole timeMember In charge of Commercial Deptt. at Hqrs., Regional ExecutiveDirectors at Regions, Airport Director/Station In charge at Airport/stationfor approval before opening of the financial bids in Envelope ‘B’ of technically qualified tenderer(s). The Competent Authority is to approvethe proposal within 10 working days.

9.14 The conditional Technical Bid of the tenderer may be summarilyrejected.



32

CHAPTER - 10

OPENING/ EVALUATION OF FINANCIAL BIDS

IN ENVELOPE ‘B’Opening of Financial Bids

10.1 Tender Opening Committee (if other than the Committee constituted foropening of Technical Bid) is to be constituted with the prior approval of thewhole time Member heading Commercial Deptt. at Hqrs., RegionalExecutive Director at Region, Airport Director/Station In charge at Airport/ Station. Any change in the constitution of the Committee may be approvedin advance.

10.2 The Financial Bids including single Bid of the technically qualifiedtenderer(s) are to be opened preferably within a maximum of 30 days fromthe date of the opening of Technical Bids in Envelope ‘A’.

10.3 The date of opening of the Financial Bids is to be notified to the technicallyqualified tenderer(s).

10.4 The financial bids in Envelope ‘B’ are to be taken out by the Tender

Opening Committee from the sealed cover in the presence of therepresentatives of the technically qualified tenderer(s).

10.5 Sealed Envelopes are to be seen for correctness before commencement of the opening of the bids.

10.6 Amount/ l i c ence f ee o ff e r ed by each tenderer is to be read out toall the participants. The Tender Opening Committee is to ensureCorrections Insertions Over-writings (CIO).

10.7 The records of the complaint/ r ep re sen t a t i on by any tenderer are to bekept including Action Taken Report.

10.8 Relevant entries are to be recorded in the tender opening register.

10.9 Signature of the representatives of the tenderer(s) are to be taken on theregister.







35

CHAPTER - 11

NEGOTIATION PROCEEDINGS AND PROCEDURES

CVC’S guidelines as contained in circular No.98/dr. ORD/1 dated 24.8.2000(Annexure XIX) applicable to expenditure contracts should be followed in respectof Revenue Contracts also in the case of H1. The following procedure is to befollowed:

11.1 As far as possible negotiations are to be avoided. In exceptional cases,negotiations with the highest tenderer only may be carried out within thebroad ambit of the tender conditions. All the conditions, which have to benegotiated/withdrawn, are to be decided by RCAC/CAB/other authoritycompetent to accept the tenders as per DOP.

11.2 Negotiations are to be carried out only with the authorised representatives of the highest tenderer after having obtained the authorization letter in writing.

11.3 Negotiations are to be carried out by a Committee comprising the Head/Incharge of Commercial Department, representative of Department of Financeand one representative from any other Department. The Committee is to beappointed by the CAB/Member-in-charge of Commercial/ REDs/AirportDirector (IAD)/ Domes t i c A i rpo r t s /S t a t i on In - cha rge a t

a i r p o r t s in respect of cases falling within the competence of acceptanceof tender.

11.4 Tenderer must confirm in writing the acceptance of negotiated terms andconditions.

11.5 The letter from the tenderer specifying the revised terms and conditionsshould be signed, stamped and dated by the licensee or his authorisedrepresentative on Printed Letter Head of the Firm. This letter should also besigned and dated by the members of the Negotiating Committee which shallform part of the Tender Documents.

11.6 Negotiation proceedings are to be recorded and signed by all the Membersof the Negotiation Committee.



36

CHAPTER - 12

DELEGATION OF POWERS

12.1 Chapter 3 of the existing ‘Delegation of Powers’ (Annexure XVII ) or asamended and modified from time to time.



37

CHAPTER - 13

COMMUNICATION FROM HQRS. TO REGION/AIRPORT

13.1 Decision of Hqrs. is to be conveyed to Region (including copy to the AirportDirectors of the respective Airports) \ Airport Directors of the InternationalAirports (including copy to the Head of the Commercial Deptt.), as the casemay be within 15 days from the date of receipt of proposal/tender documentsunder acknowledgement indicating the following :

(a) Name and address of the approved tenderer.

(b) Type of contract.

(c) Period of licence.

(d) Amount of licence fee payable alongwith provision of annualcompound escalation, if any.

(e) Notice period to terminate the licence due to unsatisfactoryperformance/without assigning any reason.

(f) Other specific conditions, if any.



38

CHAPTER - 14

COMMUNICATION OF AWARD TO SUCCESSFUL

TENDERER BY REGION/AIRPORT

14.1 Award letter is to be issued within 10 days from the date of the receipt of thedecision/approval to the successful tenderer.

14.2 If the award is to be made by Airport Director at the airports under thecontrol of NAD, decision/approval of Competent Authority for award is tobe conveyed by RED to the respective Airport Director within 2 days fromthe date of receipt of CHQ’s decision.

14.3 Award letter to the successful tenderer should ensure that terms & conditionsmentioned in the award letter were also incorporated in the tenderdocuments.

14.4 In case of existing licensee, ‘No Dues Certificate’ from Finance Deptt. is tobe re-confirmed before award.

14.5 The award letter should clearly highlight the following :

- Period of licence including date of its commencement.

- Amount of licence fee and terms of payment including liability forpayment of interest on delayed payment.

- Formalities to be completed including time frame.

- Notice period for terminating the licence agreement by either sidewithout assigning any reason.

- Penal action on account of unsatisfactory performance such as; (i)Delayed payment of licence fee; (ii) Non-observance of approvedrates of items; (iii) Not maintaining the quality in providingservice/facility; (iv) Rate list; (v) Any other breach in the terms andconditions of licence agreement including notice period forterminating licence on such eventualities is to be indicated clearly.



39

- The provision of Penal actions as under:

(a) In case, a licensee is found to be a frequent defaulter in regularpayment of dues of AAI and ultimately failed to recoup thesecurity deposits and make the payment of outstanding duestowards licence fee, electricity charges and interest on delayed

payment, if any upto the date of determination of the contract byAAI / licensee, Authority shall have the right to debar suchlicensee from participating in future tenders in the Authority for aperiod of three years. Further, the payments delayed will also beliable for interest as applicable, in terms of the Agreement.

(b) Successful tenderer must necessarily operate the contract minimumfor 50% of the contract period, failing which the licensee / lesseemay be debarred from participating in any tender in the AAI for a

period of two years.

- Liability of the prospective licensee to obtain proper Insurancecoverage for their properties/goods to be stored or used in the licensedpremises.

14.6 Copy of award letter is to be sent to RHQ/Head of Commercial Deptt. atCHQ.

14.7 Copy of agreement to be sent to RHQ/Head of Commercial Deptt. at CHQ.

14.8 Copy of check-list as per prescribed proforma to be sent to Head of Commercial Deptt. at CHQ.

14.9 Copy of award letter and extract of agreement is to be given to the userDeptt. at the airport.



40

CHAPTER - 15

COMPLETION OF FORMALITIES BY SUCCESSFULTENDERER

RED/Head/In-charge of Commercial at Airports are to ensure completion of formalities by successful Tenderer w i t h i n time frame specified in the Tenders Document prior to handing over of sites/facilities

15.1 Acceptance of award as per terms and conditions of NIT / TenderDocuments within 10 days from the date of the letter of intent / award.

15.2 Payment of advance monthly / annual licence fee, as the case to be within 15days from the date of the letter of intent / award.

15.3 Payment of security deposits towards due fulfillment of the contractualobligations for an amount indicated in Annexure II within 15 days from thedate of the letter of intent / award.

15.3.1 Separate security deposits in the form of FDR in absolute favour of AAI / Demand Draft / Pay Order / cash, as the case may be / is to be obtainedtowards telephone / electricity / water consumptions etc., as under:

(a) Security Deposits equivalent to an amount of previous 4 monthsbilling cycle in all the contracts, such as Airport Entry Ticketcontract, Car Rental Services, Management of Car Park, City CoachServices, Left Luggage facility etc.

(b) In case of remaining contracts such as; restaurants, snack bars,vending machines, any other catering establishment, executive lounge,business centers, cyber café, office / warehouse space etc., the existing



41

system prescribed in the Manual viz. 10% of the annual contract valueor 4 months billing cycle whichever is higher shall be applied.

(c) In cases where the determination of deposits is not possible, AirportDirectors / Station in charge of the respective airports shall decide theapplicability before calling tenders.

(d) In C & D Category Airports where operations are only in daytime,RED is empowered to decide the quantum of deposits before callingtenders.

15.4 Licence Agreement (on specified Stamp Paper) is to be submitted bysuccessful tenderer to AAI for execution within 15 days from the date of letter of intent/award. APD/RHQ/CHQ, as the case may be is to ensureexecution of the licence agreement within 3 days from the date of commencement of the contract.

15.5 Subject to the completion of formalities within the above specified time,Head/Incharge of the Commercial Deptt. at airport is to hand over thepossession of the contract premises to the successful tenderer within 30 daysfrom the date of letter of intent/award.

15.6 The following gestation period is to be permitted from the date of issuanceof NOC / approval of plan etc. In all such cases, Airport Director / StationIn-charge of the respective airport should ensure the issuance of such NOC /

approval of plan, if any within a maximum period of 30 days from the letterof intent / award. No commercial licence fee / gross turnover related royaltymay be charged for the gestation period. However, space licence fee as maybe applicable in addition to commercial licence fee / gross turnover relatedroyalty may be charged from the date of handing over of the possession inthe buildings other than the building under construction.

Only Commercial Deptt. is to convey all the approvals / sanctions to theconcerned licensees.

S. No. Nature of facility Gestation period 1. Restaurant/Executive Lounge inside

the Terminals90 days *

2. Snacks Bars inside the Terminals 45 days3. Restaurant inside the buildings other

than Terminals and outside areas60 days *



42

4. Snacks Bars inside the buildings other

than Terminals and outside areas30 days

5. Advertisement Rights 60 days6. Shops 45 days7. Duty Free Shops 90 days

8. Other contracts 30 days

* However, considering the ground realities and site conditions, RED/APD may send the recommendation for the extension upto 180days by recording the justification for CAB’s approval.

15.7 No gestation time is to be permitted in case of the renewal of the contract infavour of the existing licensee. However, where there is change in the scopeof work and due to suspension of the business to carry out modification etc.in the contract premises, 30 days time may be permitted.



43

CHAPTER - 16

HANDING OVER OF SITE/FACILITY

16.1 Site/facility is to be clearly earmarked on a drawing and physically measuredon site.

16.2 Handing over/taking over r epo r t t o be du ly p repa red and a r e t obe s i gned by senior most officer of the Commercial Department/ In-charge of Station and t he l i c ensee .

16.3 Standard pictograph and proper signage indicating the location/ facility/service is to be provided by AAI. However, the shops signage as perspecifications/dimensions approved by AAI is to be provided by tenderer.

16.4 Arrangement of internal telephone/electricity/ water connections etc. to beensured by AAI as per terms and conditions of tender documents.



44

CHAPTER - 17

INTIMATION BY DEPARTMENT OF COMMERCIAL TO

DEPARTMENT OF FIN AN CE & ACCOUNTS FORBILLING/PAYMENT

17.1 Copy of award letter and agreement is to be sent to local AccountsDepartment and proper acknowledgement kept in the relevant file of theCommercial Department.

17.2 Date of handing-over is to be intimated alongwith copy of handing-

over/taking-over r epo r t of the contract under acknowledgement thereof.

17.3 Date of commencement of licence is to be indicated.

17.4 Brief note is to be sent by Deptt. of Commercial to the Deptt. of Financeindicating the date of award, date of possession, date of completion of formalities, date of raising the bills, details of security deposits etc.

17.5 Deptt. of Finance is to open separate file of each case/contract.

17.6 All fixed deposits/bank guarantees towards security deposits are to be keptunder the safe custody by Deptt. of Finance. The Bank Guarantee is toremain valid beyond a period of 6 months after completion of contract.However, a copy of details of FDRs/Bank Guarantees alongwithphotocopies thereof is to be retained by Commercial Deptt. for timelymonitoring.

17.7 Any other specific instructions.



45

CHAPTER - 18

MONITORING OF QUALITY OF SERVICE/PAYMENT

PERFORMANCE

Monitoring of Performance

18.1 Deptt. of Commercial is to ensure:

(a) In case of branded items a board indicating `We Honour MaximumRetail Price' to be displayed at prominent place in the premises;

(b) In case where the rate of items/services/facility has been approved byAAI, a list of approved rates to be displayed at prominent locations inthe premises.

(c) Hygienic conditions and quality of services.

18.2 Periodical checks are to be carried out to ensure that the rates being chargedand the service being provided through such facilities as well as the items

authorised, maintenance of proper quality of service, proper display of items,hygienic conditions of eatable items and timings for the operation of facilityare as per terms and conditions of the Licence Agreement.

18.3 A separate dossier is to be maintained for recording the performanceincluding quality of services by each licensee in compliance with the termsand conditions indicated in the Licence Agreement.

18.4 Proper notices are to be issued by Commercial Deptt. to concerned licenseeindicating the areas of unsatisfactory performance, breach/violation in thecontract terms and penal action as per terms and conditions of the LicenceAgreement taken after 3 notices in case no improvement is shown.



46

Monitoring of Payment performance

18.5 The Finance Department/Deptt. assigned the duties for billing at Airport isto ensure billing and realization of licence fee and other dues within the time

frame indicated in licence agreement.

18.6 A separate dossier is to be maintained for recording the paymentperformance of each licensee in compliance with the terms and conditionsindicated in the Licence Agreement.

18.7 Every alternate month Finance Deptt. is to intimate the details about thepayment performance including confirmation about the timely payment andposition of outstanding dues, if any of each licensee to CommercialDepartment.

Action by RED/APD/Station In charge

18.8 Ensure that the Fire Extinguishers in the licensed premises are provided inproper order.

18.9 Fire alarm/sprinkler system provided in the licensed premises is in order andthe licensee has no dealing with such system.

18.10 All the fire related installations in the licensed premises includingrestaurants and other fire relevant materials, non-inflammable materials,exhausts, utilization etc. are to be inspected prior to the commencement of the business in the licensed premises and periodic checks followed.

18.11 The dossier maintained by Deptt. of Commercial/Finance regarding theperformance/payment performance of each licensee is to be reviewed everymonth and Action Taken Report is to be submitted once in 3 months.

18.12 Quarterly performance report to be sent to Hqrs. including action takenagainst the concerned licensee for unsatisfactory performance.



47

Constitution and Inspections by Quality Control Committee

18.13 A Quality Control Committee (QCC) may be constituted at each airportcomprising the officers from Deptt. of Operations, Finance, Commercial andEngineering for the purpose of carrying out periodic surprise checks so as tomonitor the quality of services/performances in all the areas.



48

CHAPTER - 19

PROCEDURE FOR TAKING ACTION AGAINST DEFAULTING

LICENSEE

19.1 In case of ex-licensee, their security deposits, if any, may be encashed andadjusted against outstanding dues. Balance amount, if any, may berecovered in consultation with Law Deptt. The details of outstanding duesagainst the ex-licensee may be reported to RHQ/CHQ. This exercise toencash the deposits/invoking the bank guarantee may be completed andaction under PPE Act for recovery of balance outstanding dues m ay also

be initiated.

19.2 In case of existing licensee hav ing ou t s t and ing dues for over amonth from the due date of payment, Commercial Deptt. should serve anotice by Regd. AD letter, besides intimating by courier or fax, to clear thedues alongwith interest on delayed payment within 15 days of the date of such a notice.

19.3 In case the entire outstanding dues are not cleared by such a defaultinglicensee, his security deposits equal to the amount of outstanding duesincluding interest should be encashed a s p e r t h e t e r m s a n dc o n d i t i o n s o f t h e a g r e e m e n t .

19.4 Simultaneously, the party should be asked by a Regd. AD letter and bycourier/fax to step up his security deposit to the requisite level under thelicence terms within 15 days of receipt of the notice, failing which licenceagreement be terminated by giving appropriate notice. In such a situation,tender documents should also be kept in readiness for immediate release toPress for an alternate arrangement.

19.5 Billing action and recovery of dues is to be pursued and monitored by Deptt.of Finance/Deptt. assigned the duties to raise the bills at Airport and detailsof defaulters intimated to Deptt. of Commercial for taking appropriate actionas per terms and conditions of the agreement.

19.6 The Commercial Deptt. is to take appropriate action against partiesdefaulting in payment. The action should include; notice to the party for



49

encashment of security deposit, r ecoup ing of security deposit andultimately termination of the licence. This action is to beinitiated/completed in a frame time schedule and in such a manner that thedefaulting licensees are not permitted to operate the contract beyond theperiod of their security deposits. Department of Finance is to be keptinformed for all such actions taken by the Department of Commercial fromtime to time at each stage.

19.7 Timely action may be taken under PPE Act for recovery of outstandingdues/eviction of un-authorised o c c u p a n t s .



50

CHAPTER - 20

TEMPORARY EXTENSIONS

20.1 Temporary extensions may be granted with the prior approval of theCompetent Authority as defined under Delegation of Powers.

20.2 Temporary extensions may be permitted under the following circumstanceson the terms and conditions including financial terms to be decided inadvance by the Competent Authority authorized to award the contract as perDOP and supplementary agreement executed for the extended period:

- Where a clause in the licence agreement exists for extension (e.g.Tenders invited for 5/3 years but contract awarded for lesser periodsubject to extension clause.

- In the absence of decision on tenders, temporary extensions may bepermitted upto 90 days on last paid licence fee irrespective of theposition of the existing licensee in tenders whether H1 or otherwise soas to avoid legal complications.

- Where the location of a licence is required by AAI for modification of building/area etc.

- Where the licence has been granted to a Central/State Govt. Deptt. onnegotiated terms.

20.3 The temporary extensions as above may be approved by the Authoritycompetent to approve the original tender as per DOP.

20.4 In case of contingency services like restaurant inside the terminal buildings,

RCAC is to approve stop gap arrangements for a period upto 6 months onlimited tender basis / negotiated terms and keep Hqrs. informed.



51

CHAPTER - 21

RENEWAL/TERMINATION NOTICE

21.1 Agencies covered under the head of Mandatory (Agencies without tender)may be informed 4 months in advance for the renewal of their licenceagreement for the space allotted to them including payment of outstandingdues, if any.

21.2 Wherever there is a provision of the renewal in the contract, parties to beinformed 4 months in advance about the date of expiry of the licence askingreply within one month, in case if they wish to seek extension.

21.3 Where there is no provision in the agreement for extension, tender action isto be initiated well in advance i.e. 180 days before the expiry of the existinglicence and fresh contract made operative from the next day of the expiry of the existing contract.

21.4 The following notice period is to apply for termination of the licence byeither side without assigning any reason.

Period of contract Notice Period Upto 1 year 30 days

Above 1 year but below 5 years 90 days5 years & above 180 days



52

ANNEXURE - I

FOUR GROUPS OF AIRPORTS

GROUP – A GROUP – B GROUP – C GROUP – DAhmedabad Amritsar Agartala AgatiBangalore Bhubaneswar Aurangabad AgraChennai Calicut Bagdogra AizwalDelhi Coimbatore Bhopal AkolaHyderabad Goa Bikaner Allahabad

Juhu (Mumbai) Guwahati Chandigarh AlongKolkatta Jaipur Dimapur BalughatMumbai Jammu Indore Barapani

Lucknow Jamnagar BehalaPatna Jorhat BelgaumPune Khajurao BhavnagarThiruvanathapuram Madurai BhujVaranasi Mangalore BilaspurUdaipur Nagpur Cooch Blair

Port Blair CuddapahRanchi DaparizoSrinagar DeradunTejpur DessaTiruchirapalli DibrugarhVadodara DonakondaVishakapatnam Gaggal

GayaGorakhpurGwaliorHubliImphalJabalpurJaisalmerJhansiJharsagudaJodhpur





54

Note:-

1. The above grouping of the Airports has been made keeping in view the

existing revenue as well as revenue potential anticipated in near future.

2. Periodical review in the above grouping of the Airports is to be made on aninterval of every 3 years depending upon the increase in the revenue vis-à-vis traffic growth.



55

ANNEXURE - II

DETAILS OF CONTRACTS AND POLICY STATEMENTREGARDING PERIODICITY OF CONTRACT, EXPERIENCE

AND ELIGIBILITY CRITERIA AND THE REQUIREMENT OFSECURITY DEPOSITS

Sl. No. Nature of Contract

Periodicity(years)

Experience/EligibilitySelection Criteria

Security Deposits(in terms

of Revenue payable to AAI)

01. Space toRegulatoryagencies/airlines.

03 On need basis toRegulatory agencies/ Airlines/PSUs/Govt. Depttas per their requirement of operations and subject toavailability of space.

Sixmonths(No SD

in case of Central/

StateGovt.)

02. Executive Lounge 05 (a) Scheduled Airlines / Chamber of Commerce

/ 5 and Above StarHotels in case of Airports under Group‘A’.

(b) Scheduled Airlines / Chamber of Commerce

/ 5/4/3 Star Hotels incase of the Airportsunder Group ‘B’.

(c) Scheduled Airlines / Chamber of Commerce

/ 5/4/3/2 Star Hotels incase of Airports underGroup ‘C’.

(d)Scheduled Airlines /

Sixmonths



56

Chamber of Commerce / Hotel of repute in caseof Airport under Group‘D’.

Certification from Deptt. of

Tourism, Govt. of India/ State Govt. should besubmitted for the Starcategorization by thetenderer.

Further, in case theExecutive Lounge providedto the Airlines are to beoperated / catered / maintained by a hotelier,the hotelier shall have topay gross turnover relatedroyalty as prescribed byAAI (on the amountcontracted by the Airlinewith the hotelier) from timeto time in addition to spacelicence fee / royalty

payable by the concernedAirline.

RCAC can review theexperience criteria in caseof the small airports underGroup C & D dependingupon the requirement dueto non-availability of theparties with prescribedexperience and takenecessary action.

03.(a) Restaurant &Snack Bar (insidethe TerminalBuilding.

10 (a) 5/4/3 Star Hotels,Grade 1 Restaurants andparties operatingrestaurants in 5/4/3 StarHotels and airports with

Twelvemonths



57

five years operatingexperience in case of airport under Group ‘A’.

(b) 5/4/3/2 Star Hotels,Grade 1 Restaurants and

parties operatingrestaurants in 5/4/3/2 StarHotels and airports withthree years operatingexperience in case of airports under Group ‘B’.

(c) 5/4/3/2/1 StarHotels, Hotel of Reputeand Grade 1 Restaurantsincluding parties operatingin Star Hotels with twoyears operating experiencein case of Airports underGroup ‘C’.

(d) 5/4/3/2/1 Star Hotelsand Grade 1-2 Restaurantsincluding parties operating

in Star Hotels/airports withone year operatingexperience in case of Airports under Group ‘D’.

(e) In case of CADDomestic Airports otherthan model airports, RCACmay review the aboveexperience criteria due tonon-availability of theparties of above stipulatedexperience.

(Certification from Deptt.of Tourism, Govt. of India/ State Govt. should be



58

submitted for the Starcategorization/grading)

03.(b) Restaurant andSnack Bar insidethe CargoTerminal/other

AncillaryBuildings andcateringestablishmentoutside theTerminal Buildingin the vicinity of the Airport.

05 (a) Group ‘A’ Airports

Parties having experienceof 3 years in running a

good quality Restaurant/ Fast Food joint/Cafeteria intheir own name and arehaving minimum annualturnover equal to theamount of 24 monthsprescribed MRLF.

(b) Group ‘B’ Airports

Parties having experienceof 2 years in running agood quality Restaurant/ Fast Food joint/Cafeteria intheir own name and arehaving minimum annualturnover equal to anamount of 12 monthsprescribed MRLF.

(c) Group ‘C’ Airports

Parties having experienceof 2 years in running goodquality Restaurant/FastFood joint/Cafeteria intheir own name and arehaving minimum annualturnover equal to anamount of 6 monthsprescribed MRLF.

(d) Group ‘D’ Airports

Parties having experienceof one year in running

Sixmonths



59

good quality Restaurant/ Fast Food joint/Cafeteria intheir own name.

In case of DomesticAirports other than model

airports, RCAC mayreview the aboveexperience criteria due tonon-availability of theparties of above stipulatedexperience.

03 .(c )

Branded Fas tFood Ou t l e t s

10 Group ‘A’ & ‘B’ Ai rpor t s

L i c e n c e t o b eg r a n t e d t o b r a n d e dFas t FoodOpera to r s hav ingrepu t ed b r andedn a m e w h i c h i sr e n o w n e dna t iona l l y /i n t e rna t i ona l l y. Thep r o s p e c t i v eope ra to r shou ldh a v e a m i n i m u m o f a t l e a s t 25 -30ou t l e t s i n Ind i a o r a b r o a d w i t h t h e

s a m e n a m e .

SixMonths

04. Airport BusinessCenter

05(Extend-

able)

(a) Tenders for the use of the facility oncommercial terms areto be invited from theBanks includingForeign Banksoperating the Credit

Noseparate

SD, sinceit is

coveredunder

restaurant



60

Card facilities.

(b) For operating thebusiness center, it willbe a part of thetenders for

Restaurants inside theterminals as anexpenditure contracton negotiated termswith highest tenderer.

contract

05.(a) Duty Free Shops(Tender action atHqrs. only)

05 Parties who have minimumfive years experience of operating Duty Free Shopsin India and/or abroad withyearly turnover of not lessthan Rs.70 crores duringthe last financial year.

SecurityDepositequal toanamount of 12monthsrevenuepayableto AAItowardsspace

licencefee plusroyalty in



61

the formof Bank Guaranteeissued byaNationalis

ed/Scheduled Bank in Indiaor by aforeignbank branch inIndia andconfirmedby anIndianNationalised/Scheduledbank.

05.(b) Jewellery Shops inTransit / Departure area of Int’l Terminals

(Tender action atHqrs. only)

05 Parties who have minimum02 years experience of operating Jewellery Shopsin India and/or abroad with

yearly turnover of not lessthan Rs.2 crores during thelast financial year.

Twelvemonths

06. All kind of Shopsother than DutyFree Shops.

05 Firm/individual who fulfillthe conditions of:

Group ‘A’ & ‘B’

2 years experience of running similar kind of shops for which tendershave been invited / departmental stores

Twelvemonths



62

Group ‘C’ & ‘D’

One year experience of running similar kind of shops for which tendershave been invited /

departmental stores.

Clarifications:For the purpose of similar kind of shops DepartmentalStores / book shops / handicraft emporiums maybe considered similar to TRShop at airports.

07. (a) Car Rentals 05 Firm/individual whofulfills the conditions of:


Two years experience inmanaging similar kind of business, having a fleet of minimum 10 A/c cars notolder than 3 years duly

Registered in the name of the tenderer.


One year experience inmanaging similar kindbusiness, having a fleet of minimum 5 A/c cars notolder than 3 years dulyRegistered in the name of the tenderer.

Sixmonths

7. (b) In t ernat i onal lyBranded Car Renta l Servic es

05 Opera tors of In t e rna t iona l ly b randedCar Renta l Servicesl ik e Her t z , Avis , Rent -a-Car and Euro Cars e tc .

Sixmonths



63

should have opera t ionin a t l eas t 10 coun t r i e sou t s ide Ind ia .

Tenders to be inv i tedw i t h o u t i n d i c a t i n g M R L F.

07. (c) INTER-STATEA/C COACHSERVICE

05 Firm / individual whofulfills the conditions of:


i. 2 years experience of running / operating busor Coach Service underthe All India TouristPermit / ContractCarriage Permit / StateCarriage Permit / Inter-State Tourist Permit / Corporate Permit issuedby the appropriateAuthority.

ii. Should have a minimumannual turnover of Rs.1

crore in case of airportunder Group ‘A’ &Rs.50 lakhs in case of airport under Group ‘B’from transportationbusiness as indicated insub-para (i) above.

iii. Should possessminimum 5 coaches / buses not older than 05years duly registered inthe name of thetenderer.

iv. RCAC is to approvespecifications of the A/c

Sixmonths



64

Coach like; number of coach, its life, seatingcapacity, frequency tooperate and othertechnical specifications,if any depending upon

the requirements at aparticular airport beforeinviting tenders.

v. The successfultenderers shall acquirenecessary permit fromthe State Govt. wherethe airport is locatedand from the concernedState Govt. foroperation of the coachservice and shallcommence theoperation within 60days from the date of letter of indent/award of AAI.


a. 1 year experience of running / operating busor Coach Service underthe All India TouristPermit / ContractCarriage Permit / StateCarriage Permit / Inter-State Tourist Permit / Corporate Permit issuedby the appropriateAuthority.

b. Should possessminimum 2 coaches / buses not older than 05



65

years duly registered inthe name of thetenderer.

c. RCAC is to approvespecifications of the A/c

Coach like; number of coach, its life, seatingcapacity, frequency tooperate and othertechnical specifications,if any depending uponthe requirements at aparticular airport beforeinviting tenders.

d. The successfultenderers shall acquirenecessary permit fromthe State Govt. wherethe airport is locatedand from the concernedState Govt. foroperation of the coachservice and shall

commence theoperation within 60days from the date of letter of indent/award of AAI.

(RC book is to be verified) 07. (d) CITY COACH

SERVICE02 Firm/individual who

fulfills the conditions of:


i. 2 years experience of running / operating busor Coach Service underthe All India TouristPermit / Contract

Sixmonths



66

Carriage Permit / StateCarriage Permit / Inter-State Tourist Permit / Corporate Permit issuedby the appropriateAuthority.

ii. Should have a minimumannual turnover of Rs.1crore in case of airportunder Group ‘A’ &Rs.50 lakhs in case of airport under Group ‘B’from transportationbusiness as indicated insub-para (i) above.

iii. Should have a fleet of 3coaches not older than 5years and registered inthe name of tenderer.

iv. RCAC is to approvespecifications of the A/cCoach / non-A/c

coaches like; number of coach, its life, seatingcapacity, frequency tooperate and othertechnical specifications,if any depending uponthe requirements at aparticular airport beforeinviting tenders.

v. The successfultenderers shall acquirenecessary permit fromthe State Govt. wherethe air port is located for



67

operation of the coachservice and shallcommence theoperation within 60days from the date of letter of indent/award of

AAI CNG buses are tobe operated as per therequirement of the StateGovt., where the airportis located.


i. One year experience of running / operating busor Coach Service underthe All India TouristPermit / ContractCarriage Permit / StateCarriage Permit / Inter-State Tourist Permit / Corporate Permit issuedby the appropriateAuthority.

ii. Should have a fleet of 2coaches not older than10 years and registeredin the name of tenderer.

iii. RCAC is to approvespecifications of the A/cCoach / non-A/ccoaches like; number of coach, its life, seatingcapacity, frequency tooperate and othertechnical specifications,if any depending uponthe requirements at aparticular airport before



68

inviting tenders.

iv. The successfultenderers shall acquirenecessary permit fromthe State Govt. where

the airport is located foroperation of the coachservice and shallcommence theoperation within 60days from the date of letter of indent/award of AAI. CNG buses are tobe operated as per therequirement of the StateGovt., where the airportis located.

(RC book is to be verified) 08. Vending Machine

(Tea/ Coffee/ColdDrinks)

03 1. Branded manufacturers,who are interested toinstall and operate thevending machinesdirectly.

2. Franchisers of thebranded manufacturershaving 2 yearsexperience of operatingCold Drink / Tea / Coffee VendingMachines, as the casemay be at hospitals,railway stations, busterminals, sea ports,airports and other publicplaces including downtown market in the city.One location is to beallotted in one terminalto each such party.

Sixmonths



69

09. Left Luggage

Facility03 One year experience for

managing Left Luggage/ Clock-Room at an Airport,Seaport, Railway Station,4/5 Star Hotel/Hospitals,

and/or; Security Agencieshaving a minimum 2 yearsexperience.

Sixmonths

10. Management of Car Park

05 Group ‘A’& ‘B’ Airports

i. 2 years experience of managing a Car Park with GovernmentDeptts. / Public Sector / 5 & 4 Star Hotel / Hospital / MunicipalCorporation / Airport / Sea Port / Railways / Bus Terminals

In addition prescribedturnover criteria will beapplicable.

Group ‘C’&‘D’ Airports

i. One year experience of running a Car Park witha Government Deptt / Public Sector / 5 & 4Star Hotel / Hospital / Municipal Corporation / Airport / Sea Port / Railways / BusTerminals.

In addition prescribedturnover criteria will beapplicable.

Sixmonths

11. WeighingMachine

03 No experience. Tender bycirculation.

Sixmonths



70

12. Advertisement

contract05 Tenders are to be invited

based on the following:

Group ‘A’&‘B’ Airports

Parties who have aminimum of 3 yearsexperience inadvertisement displaybusiness at transportationcenter like Airport,Seaports, Railways as awhole, Bus Terminalsincluding Bus Sheltersand pub l i c p l ace s .

In addition prescribedturnover criteria will beapplicable as mentioned atNote 1.

Group ‘C’&‘D’ AirportsDirect participation byBusiness Houses and/or the

parties who have 2 yearsexperience inadvertisement displaybusiness at transportationcenter like; Airport,Seaport, Railway as awhole, Bus Terminals,including Bus Sheltersand pub l i c p l ace s .

In addition prescribedturnover criteria will beapplicable

Note: Tenders are to beinvited for individualairports under single

Sixmonths





72

money exchangebusiness .

1(b)The tenderer should possessm i n i m u mexper i ence o f ope ra t ing 15branches /coun te r s in Ind iaand/or abroad .

1(c)The tenderer pa r t i c ipa t ing in thetende r s fo r In t e rna t iona lAirpor ts v iz . IGI /Mumbai / Chennai /C a l c u t t a /Tr ivandrumAirpor ts and NADAirpor t s dec la redin te rna t iona lshould havemin imum annua ltu rnover o f Rs.50.00 croresdur ing the l a s tf inanc ia l yea r.

1(d) The tenderer pa r t i c ipa t ing in thetende r s fo r domes t i c a i rpo r t sshould havemin imum annua lturnover of Rs .10 .00 Crores dur ingthe l a s t f inanc ia lyear. For NER, themin imum annua ltu rnover sha l l beRs. 1.00 Crore.



73

P rov ided tha t upon thea w a r d o f c o n t r a c t , t h esuccess fu l t ende re r should produce va l idl i cence f rom Rese rveBank of India for ca r ry ing ou t the MoneyExchange bus iness a tthe a i rpo r t be fo rec o m m e n c e m e n t o f t h el i c e n c e .

16. InsuranceCounters

03 Nationalised/PrivateInsurance Cos. as approved

by IRAI

Sixmonths

17. Payphone facility 03 Inside the terminalbuilding, facility may beoperated directly throughbasic telephone serviceproviders authorised byGovt. such as MTNL,BSNL, Bharti Telnet,Touchtel, TATA

Teleservices and RelianceInfocom and the otherparties placed similarly, if necessary, by way of limited tenders.

OUTSIDE TERMINALBUILDING, facility maybe provided after call of open tender amongstIndividuals falling underthe category of ScheduledCaste / Scheduled Tribe / Handicapped / WarWidows, who are havingtelephone lines in their ownname.

Sixmonths



74

18. Dormitory

Contract05 3 years experience of

running 2 Star Hotels / Motels, licensed GuestHouses & Holiday Homes / Resorts in their own name.

Certification from Deptt. of Tourism, Govt. of India / State Govt. should besubmitted for the Star categorization.

Twelvemonths

19. Photostat/ Secretarial/ PackerServices

03 Firms/individuals with oneyear experience in thesimilar line of business. Incase of Airports under theGroup ‘C’ & ‘D’,experience as Manager willalso be accepted.

Sixmonths

20. Cellular Phonehire facility

03 Parties having licenceissued by Govt. of India forproviding Cellular Phoneservice in the city wherethe airport for whichtenders are invited is

located. (Any changes, if modified by Govt. can besuitably altered.

Sixmonths

21. Hotel Reservation 03 Group ‘A’&‘B’ Airports

(a) Tour & Travel Houseshaving national / international network dulyapproved by Deptt. of Tourism / Agencies, whoare having 3 yearsexperience in hotelreservation with theirannual turnover of Rs.1crore from hotelreservation booking.

(b) In respect of the

Sixmonths



75

airports in NER and underGroup ‘C’ & ‘D’, theturnover can be decided bythe respective REDs.

22. Airports EntryTicket

05 a Reputed & experiencedparties having minimum

2 years experience inproviding securitypersonnel and managingsecurity gates in reputedindustries / firms.

b. Parties having 2 yearsexperience in handling / management of AirportEntry Ticket atInternational / DomesticAirports.

c. Parties having 2 yearsexperience in handlingthe management of entry tickets at PublicTheatre / Trade Fair.

d. Parties having 2 yearsexperience from TollGate collection fromcontracts awarded byGovt. Deptts. / Undertakings.

In case of Domestic Airports under Group ‘C’& ‘D’, RCAC may reviewthe experience criteria /

periodicity of contract keeping in view the ground realities.

Sixmonths

23. ATM 03 Banking Institutions.However, only one locationper Bank is to be given ineach terminal.

Sixmonths



76

24. Health Centre (inTerminals)

03 Hospitals Sixmonths

25. Newspapers/ MagazineVending Machine

03 Reputed PublicationHouses having minimumof 10 current publicationsto their credit with wide

circulation.

Sixmonths

26. Snacks DispensingVending Machine

03 Parties / agencies / individuals havingminimum 2 yearsexperience in operatingatleast 10 fully automaticVending Machines for saleof Snack of differentmanufacturers atTransportation Centres / Hospitals / RailwayStations / Bus Terminalsetc.

SixMonths

27. InformationKiosks

03 (a) Ministry of Tourism / other Ministries(without call of tender).

(b) Software Cos. having

2 years experience of having developedSoftware information / Tourism relatedmatters (with call of tenders).

Sixmonths(No SD

for Govt.Deptt.)

28. Cyber Café(Internet Parlour)The facility willalso includecoffee/ tea/SoftDrinks throughautomatic vendingmachine and lightsnacks at theCyber Café.

03 Software Cos. / agencieshaving minimum of 3 yearsexperience in operatingCyber Café and providingInternet Browsingfacilities.

Sixmonths



77

29. Paid Porterage

System05 a. Reputed & experienced

parties having minimum2 years experience withtheir annual turnover of Rs.100 lacs in providing

security personnel andmanaging security gatesin reputed industries / firms.

or

b. Parties having 2 yearsexperience in handling / management of AirportEntry Ticket atInternational / DomesticAirports with annualturnover of Rs.100 lacs.

SixMonths

30. Passenger BaggageWrappingServices

05 A. Minimum one year expe r i ence inope ra t ing suchmach ine a t any o f the a i rpo r t s i n

India/abroad

or

having one year expe r i enceanywhere in thef i e ld o f mechan ica lwrapp ing (p roof o f

expe r i ence to begiven).

B . shou ld have ownedmac h ines o f the typepresc r ibed fo r thepurpose of

Si xm o n t h s



78

exper i ence andproof o f the samew i t h t h e f o l l o w i n gt e c h n i c a lspec i f i ca t ions : -

i . Baggage wrappingmach ines shou ld besmal l and por t ab lew h i c h o c c u p i e sspace no t more than1.5 Sqm. andmanufac tu red byrepu ted company.

i i . Mac hines shoul d beba t t e ry ope ra t ed andequ ipped w i th sa fe tysensors and shouldbe capable of be ings toppeda u t o m a t i c a l l y i ncase o f anymishand l ing

i i i . Machines should bes leek and noise less .

C. Successf u l t enderer m a y b e a l l o w e d t op rocure newmach ines and a l soobta in BCAS

c l e a r a n c e w i t h i n ape r iod o f 3 mon ths .

D. No t ie upa r rangemen t wi l l becons ide red fo r thepurpose of



79

exper i ence c r i t e r i aand a lso for runningo f t h e c o nt r a c t .

E . Number of machinesmay be dec ided byAi rpor t D i rec to r a spe r t r a ff i c po ten t i a la t each a i rpo r t .

31. Passenger BaggageTro l l ey f ac i l i t y

03 1 . Par t ies w ho have amin imum of 2 yea r sexper i ence inadver t i s emen tdisplaybusiness / t ro l leymanagementse rv ices a tt r anspor t a t ioncen te r l i ke ; A i rpor t s ,Seapor ts , Rai lwaysas who le , bust e rmina l s inc lud ingbus she l t e r s .

2 . Hot e l ie rs /a i r l ines

inc lud ing fo re ignai r l ines /bus iness andindus t r i a lhouses /cour ier agencies /shoppingm a l l s w i t h t h e i r e s t ab l i shmen t no tless than 2 years .

3 . The par t i es as per ( i )

and ( i i ) above shouldhave an annualtu rnover o f no t l e s sthan Rs . 1 .00 croref rom the bus inessf o r w h i c hexper i ence has been

Si xm o n t h s



80

c l a i m e d .32 Ins t a l l a t ion o f

Plazma / LCDTVs in thete rmina lbu i ld ings o f t hea i rpor t

03 A. “Fi rms/ indiv idualshav ing r equ i s i t ei n f r a s t r u c t u r e w i t hmin imum one yea r expe r i ence inp rov id ing iden t i ca len te r t a inmen tse rv ices a t Ra i lwayStat ions/Sea Ports/bus t e rmina l s /r e n o w n e dMul t ip l exes(Marke t ingComplexes)”

B. No t ie-upa r rangemen t wi l l becons ide red fo r thepurpose of exper ience/ runningo f c o nt r a c t .

C. Cost to cabl eopera tors sha l l haveto be bo rne by thel i censee .

D. Only one sponsor for each loca t ion shouldbe a l lowed and to beensured tha t va r ious

channe l s a redisplayed a td i ff e ren t l oca t ionsfo r the bene f i t o f t het r ave l ing pub l i c .

6m o n t h s



81

Important Notes :-

1. Wherever, gross turnover related experience has not been mentioned in theabove statement, the gross turnover related experience shall be as under:

Annual Value of the MRLF

Annual Gross Turnover from similar business as part of the experience

Upto Rs.12 lacs NILAbove Rs.12 lacs & uptoRs.60 lacs

An amount equal to 3 months of prescribedMRLF

Above Rs.60 lacs & uptoRs.200 lacs

An amount equal to 06 months of prescribedMRLF.

Above Rs . 200 l ac s An amoun t equa l t o 12 mon t hs o f p resc r ibed MRLF.

2. Past experience of a tenderer means experience claimed during “twice” theperiod for which tenders are being invited i.e. in case tenders for a shop havebeen invited for a period of 5 years, experience during the last 10 years fromthe date of publication of NIT shall be taken into consideration.

3. Amount of Security Deposit will include the space licence fee, if payable, inaddition to the fixed amount of licence fee/royalty.

4. (a) For a contract period of 10 Years

Bank guarantee valid for an initial period of five years is to beobtained for an amount payable during the 5 th year of the contractafter application of 10% compound escalation and same should begot replaced in advance for the remaining period of the contract plus6 months overlapping period.

(b) For a contract period upto 5 years

Bank Guarantee which should be valid for the entire period of thecontract plus 6 months overlapping period is to be obtained for anamount due for payment during the last year of the contract afterapplication of usual 10% compound escalation.



82

(c) Bank Guarantee is to be issued by a Nationalised / Scheduled Bank

and no Bank Guarantee is to be accepted from a Co-operative Bank even though scheduled.

5. Security Deposit in the form of Fixed Deposit Receipt issued by a

Nationalised/Scheduled Bank in absolute favour of AAI can be accepted. Incase of small Regional Airports, parties may be permitted to furnish thesecurity deposits by way of pay orders/demand drafts in favour of theAirport Director of the respective Airports.

6. In respect of the Airports under Group ‘C’ and ‘D’ amount of SecurityDeposit upto Rs.50,000/- per contract can be accepted by way of DemandDraft and upto Rs. 20,000/- in cash (interest free in both cases).

7. The decision of the Board as prevailing from time to time shall apply foracceptance of Security Deposits either in form of FDRs or Bank Guarantees.

8 . “Turnove r” means t u rnove r f rom s imi l a r bus ine s s fo r t her e l e va n t p e r i o d f o r w h i c h e x p e r i e n c e h a s b e e n c l a i m e din t e rm s o f t he NIT i .e . t he t u rnove r shou ld be r e l a t ed t othe bus ine s s on ly fo r w h ich t he t ende r i s c a l l ed .

Hence , wh i l e de t e rmin ing t he ‘ t u rnove r ’ , t he de t a i l sfu rn i shed r ega rd ing i ncome / tu rnove r r e f l ec t ed i n t heP ro f i t and Loss Accoun t s submi t t ed by t he t ende re r, i tshou ld be ensu red t ha t t he i ncome / tu rnove r i s f r om theco re bus ine s s on ly and no t r e l a t ed t o any o the r a c t i v i t y.

I l l u s t r a t ion

i . I f t enders a re c a l led for Car Park ing c ont rac t s a t a i rpo r t s , t u rnove r towards ca r pa rk and any o the r moto r veh ic l e pa rk ing f ac i l i t y, i s on ly to be t aken and no incom e f rom any o t he r bus iness .

i i . When t enders a re c a l led for res t aurant , inc om e f rom res t au ran t o r r e l a t ed ac t iv i t i e s l i ke f rom Food Cour t , Snack Bars e tc . could be cons idered but no



83

i ncom e f rom any o t he r ac t iv i ty l i k e Du ty F ree Shop ,Car Renta l e tc . p rovided by any hote l , i s to be t a k e n .

In o rde r t o a s se s s t he above , t he pa r t i e s shou ld ,

t he r e fo re , be a sked t o submi t t he P ro f i t and LossA c c o u n t s a l o n g w i t h t h e s c h e d u l e i n d i c a t i n g t h e b r e a k -up o f t he i r i ncome f rom va r ious sou rce s s epa ra t e ly.Th i s a spec t / r equ i r emen t shou ld be made c l ea r i n t het ende r documen t s i t s e l f . I n t he absence o f de t a i l s i nP ro f i t and Loss Accoun t s / s epa ra t e s chedu le showingb i fu rca t i on o f r evenue , t he de t a i l s a r e t o be submi t t edby t he t ende re r du ly ce r t i f i ed by a Cha r t e r edA c c o u n t a n t .

Tu rnove r du r ing any f inanc i a l yea r i n t he r e l evan t pe r iodf o r w h i c h e x p e r i e n c e h a s b e e n c l a i m e d s h a l l b e t a k e ni n t o a c c o u n t .

9. In case of small Domestic Airports, the experience criteria / periodicity of contract may be reviewed by RCAC due to Non-availability of the parties

fulfilling the prescribed experience.

10. Whenever a new contract is created within the delegated powers of REDs / APDs / Station-in-Charge, details may be furnished to CHQ.

11. Link Buildings / Visitors Lounge are to be treated as buildings other thanTerminals.

12. ‘Days’ means ‘working days’



84

Tender for _______Opened on _______

COMPARATIVE STATEMENT TO BE PREPARED BY TENDER OPENING COMMITT__________________AIRPORT

Sl. No.

Name and Address of Tenderer*

Licence Fee

Tendered

Details of E.M.D.

Annual Turnover& Details

of supporting Documents

Details of Experience

& supporting Documents

Proof obe ing IT

Asses see

(FINANCE) (COMMERCIAL)

Counter Signature

(AIRPORT DIRECTOR)* Name of Directors/Partners/Proprietors to be indicated.



ANNEXURE – IV

___________ AIRPORT

EVALUATION SHEET TO BE PREPARED BYDEPARTMENT OF COMMERCIAL AT CHQ/RHQ/AIRPORT

1. Name of work (facility) : _______________________

2. Period of Licence : _______________________

3. Existing facility/new facility : _______________________

4. Name of existing licensee : _______________________

5. Present Revenue, if any : _______________________

6. Minimum Reserved Licence Fee : _______________________

7. Tender (a) Technical Bid opened on : _______________________

(b) Financial Bid opened on : _______________________

(c) Valid upto : _______________________

(d) Whether 1 st /2 nd call : _______________________

8. No. of Tender (a) Sold : _______________________

(b) Received : _______________________

(c) Opened : _______________________(Technical Bid)

(d) Opened : _______________________(Financial Bid)



9. Details of Tenders received/ Financial Bids

Sl.No. Name of Parties AmountQuoted Rating Performance, in case of existing/ex-licensee(Satisfactory/Un-satisfactory

10. Competent Authority to decide the : _______________________award (refer DOP).

11. Recommendation of Commercial : _______________________Department.

12. Views/concurrence of Deptt. of : _______________________Finance at Airport/Region

13. Recommendations of RED/Airport : _______________________Director, if the award is within _______________________powers of Hqrs. _______________________



ANNEXURE – V

FORWARDING NOTE TO BE PREPARED BY RED/AIRPORTDIRECTOR

(PROPOSAL FOR AWARD OF COMMERCIAL CONTRACT)

1) Name of the Proposed Revenue : _______________________contract.

2) Licence Fee as per last contract : _______________________

3) Reserve Price : Rs. ____________________

4) Period of the Proposed contract : One/Two/Three/Five/TenYears w.e.f. __________

5) The names of the Newspaper in which : i.the NIT was published with dates ii.

iii.

6) The date on which theTender Notice published : Date ___________________Tender(s) received : Date ___________________Technical Bid opened : Date ___________________Financial Bid opened : Date ___________________

7) Total No. of Tenders sold : _______________________

8) Total No. of completed Tender : _______________________Forms received.

9) CONFIRM WHETHERi. the tenders are opened by a duly : YES/NO

constituted Committee

ii. the documents form Envelope ‘A’ : YES/NOare verified in accordance with NITconditions and are found to be in

order, to qualify for opening of Envelope-'B'.





ANNEXURE – VI

HANDING/TAKING OVER NOTE TO BE PREPARED BYDEPARTMENT OF COMMERCIAL

1. Name of Licence :

2. Name of Licensee :

3. Award Letter No & Date :

4. Date of signing of Agreement :

5. Particulars of payment of (i) advance :Licence Fee; (ii) Security Deposit.

6. Particulars of site as demarcated on :Aerodrome grid map/building map.

7. Date of Handing/Taking over of site :

Signature of Party Signature of Handing Over Licensee__________________

Name ____________________ Name __________________

Designation _______________ Designation _____________(with seal) (with seal)

Witness : 1) _________________________________

2) _________________________________





2. You are requested to arrange the payment of aforesaid dues together withinterest on delayed payment @ _______* per annum (i.e. an amount mentionedat column _________ above) within _______* days of the issuance of this

letter, failing which the entire amount of outstanding dues shall be adjustedfrom your Security Deposits available with us, without any further reference toyou. In addition, AAI shall be constraint to take further action as deemed fitincluding termination of licence if situation so warranted.

Please acknowledge receipt.

Thanking you,

Yours faithfully,

( )

NOTE: * This can be suitably filled as per terms & conditions of Agreement.



ANNEXURE – VIII

AIRPORTS AUTHORITY OF INDIA

_________________ AIRPORT

No. Date :

--------------------------------

--------------------------------

--------------------------------

Subject: Adjustment of outstanding Dues - Recoupment of Security Deposit.

Reference: Contract for __________Sir,

Please refer to this office letter No._______________dated_____________ regarding payment of outstanding dues.

2. As you have failed to make payment of outstanding dues within the timestipulated in the above letter, we have encashed your Security Deposit andadjusted an amount of Rs ____________against the outstanding dues as on____________.

3. After adjustments as above the balance amount of Security Deposit hasreduced to Rs ______________.

4. Therefore, you are requested to recoup the Security Deposit amount asper conditions of Contract within _______* days of issue of this letter, failingwhich necessary action to terminate the licence in terms of agreement shall beinitiated, without any further reference to you.

Thanking you,Yours faithfully,

( )

NOTE: * This can be suitably amended as per requirement.



ANNEXURE – IX


_________________ AIRPORT

No. Date :

--------------------------------

--------------------------------

--------------------------------

Subject: Termination of Contract

Sir,

It may please be recalled that vide this office letter No____________dated _____________, you were given an opportunity to pay the outstandingdues of Rs ___________ Since the dues were not paid, the amount was adjusted

from your Security Deposits and vide letter No___________ dated __________,you were required to recoup the amount of Security Deposit to the level of Rs___________ as per terms and condition of agreements dated ___________.

2. Now that, you have failed to recoup the Security Deposit amount as perthe requirement of Clause No ______ of the agreement dated ________, we areconstrained to terminate your licence by giving _______ notice in terms of Clause No ______ of the Agreement.

3. You are therefore, requested to hand over the peaceful and vacantpossession of the premises immediately on ______________. This will bewithout prejudice to our rights to take legal action as deemed appropriate.

Please acknowledge receipt.

Thanking you,Yours faithfully,

( )





95

CONTRACT REGISTER TO BE MAINTAINED BY COMMERCIAL DEPARTMENT O______________ AIRPORT

STATION: ________________ NAME OF CONTRACT _

Sl. No.

Name of Licensee

File No./ Award

letter No. & Date

Period From

To

Quantitative details(Area of

land/ spaceetc.

Rate Monthly / Yearly Licence

Fee

Security Deposit

details of Bank

Guarantee with

validity

Ag



96

ANNEXURE – XII

PARTY LEDGER TO BE MAINTAINED BY DEPARTMENT OFFINANCE

PARTY'S NAME_________________

ADDRESS______________________

CONTRACT FOR _________ L/FEE _______P.M. PERIOD __________

Date Particulars of Bill Receipt of Payment

Debits Credits Balance DR/CR

Remarks

Note :-

1) Posting in the party ledger should be made from bill register for debit column and from Cash/Bank Book for credit column. The paymentsreceived from party should be verified with reference to bill raised by

AAI before posting.

2) Closing balance should be ascertained at the end of every month and to be reflected in column for Balance.



97

ANNEXURE – XIII

APPLICATION FOR ALLOTMENT/RENEWAL OF SPACE/HANGAR ONLICENCE AT _________________ AIRPORT.

1. Name of Party :

2. Full Address :

3. Form of Organisation :

4. Details of space/Hangar requested for : (i) Plot area ______________

allotment/renewal (area in Sqm.). (ii) Built-up area ___________(iii) Apron area, if any _______

5. Purpose for which allotment of :space/Hangar has been requested.

6. Period of Allotment/renewal :

7. Present Rate of Licence Fee :

(SIGNATURE OF APPLICANT)

FOR USE OF AAI

8. Details of outstanding dues :

9. Rate of Licence fee proposes for :renewal.

10. Comments of User Department :(i.e. Planning & Operations)

11. Recommendation of Commercial :Department.

12. Period of allotment/renewal :



98

13. Recommendation of Airport Director :if referred to Hqrs.

14. Approval of Competent Authority :

CHECK-LIST

1. Name of Licence : _________________________

2. Area of the premises and its location : _________________________

3. Period of Licence : _________________________

4. Amount of Licence Fee : _________________________

5. Amount of Security Deposit : _________________________

6. Date of signing of Agreement : _________________________

7. Name & Address of the Licensee : _________________________



99

ANNEXURE - XIV

COST OF DOCUMENTS – RS ___________

TENDER DOCUMENT NO ______________

Subject: __________________________

1. Notice Inviting Tenders - 2 Sheets

2. General Information & Guidelines - 5 Sheets

3. Form of Tender - 2 Sheets

4. Licence Agreement - 7 Sheets

5. Schedule of premises - 1 Sheet

6. General Terms & Conditions - 11 Sheets

7. Envelope ‘A’ / ‘B’/ Master Envelope - 3 Sheets

(SIGNATURE OF ISSUING AUTHORITY)



100

NOTICE INVITING TENDERS

Tender in the prescribed form duly sealed are hereby invited for grantinglicence for the following:

__________________________________________________________________Name of Facility Earnest Money Minimum Reservewith its location Deposits Licence Fee----------------- ------------------ ----------------------

1.

2.

3.

4.

5.

2. The period of licence shall be for _______years.

3. The parties fulfilling the criteria as per NIT are eligible to participate in the

tenders:(a)

(b)

(c)

4. Only one tender document shall be sold to a single party either a firm or anindividual. The proprietor of more than one company or firm will be considered assingle party and one legal entity.

5 . Any pa r ty e i t he r a f i rm o r an i nd iv idua l f a l l i ng unde r t hef o l lo w i n g c a t e g o r ie s i s n o t e l i gi b l e

(a ) De-bar red /b lack l i s t ed by CBI or AAI or Unde r t ak ings /Depa r tm en t s l i ke ; Ra i lw ay, De fence ,



101

or any o the r Depa r tmen t o f Gov t . o f I nd i a , S t a t eGov t . Dep t t . o f Commerc i a l a t RHQ/Ai rpo r t s i s t oma in t a in r eco rds o f such deba r r ed /b l ack - l i s t edpa r t i e s i n consu l t a t i on w i th Vig i l ance Dep t t . , a tCHQ. In th i s regard , Dept t . o f Vig i lance a t Hqrs .m a y f o r w a r d a n u p d a t e d l i s t t o t h eReg ions /A i rpo r t s . A dec l a r a t i on t o t h i s e f f ec t i sa l s o t o b e o b t a i ne d f r o m t h e p a r t y s u b m i t t i n g t h et e n d e r d oc u m e n t s .

(b ) Pa r t i e s f ac ing ac t i on unde r PPE Ac t , w i th AAI .

( c ) Pa r t i e s e i t he r an i nd iv idua l o r a bus ine s se s t ab l i shm en t , w ho has been o rde red by a Cour to f L a w t o p a y t h e o u t s t a n d i n g d ue s o f A AI a t a n yo f t he a i rpo r t s a s a w ho le and has no t pa id suchdues t o AAI sha l l a l so no t be e l i g ib l e fo r t het e n d e r.

6. Tender documents indicating full details of the licence are available on non-refundable payment of Rs.________ on any working day between _______ hoursto ________ upto _______ hours at the following address:

7. Tender documents duly completed in all respects should reach either byregistered post or by persons at the above address on or before ______ upto______ hours positively. The Technical Bids of the tenderers shall be opened on______ at _______ hours in the presence of the interested tenderers or theirauthorised representatives. The date of opening of the Financial Bids shall beintimated separately in due course.

8. AAI reserves to itself the right to reject the conditional tenders withoutassigning any reason thereto.

9. AAI reserves to itself the right to reject any or all the tenders withoutassigning any reason thereof and to call for any other detail or information fromany of the tenderer(s).

(AIRPORT DIRECTOR/STATION-IN-CHARGE)



102

GENERAL INFORMATION/GUIDELINES

1. Tender documents are not transferable.

2. ‘Technical Bid’ must be sealed in Envelope ‘A’ and ‘Financial Bid’ in

Envelope ‘B’ and both the Envelopes are to be sealed in ‘Master Envelope’.

3. Envelope 'A', which shall be opened first, shall contain the basic documents

specified as under :

i. Details of experience in the trade for which tenderer(s) intend to

participate alongwith supported authenticated documents. Credential

certificate issued by the authorities at the place of contracts or clients

or bankers in favour of tenderer(s).

ii. Earnest Money Deposit of Rs.______ in the form of Bank Demand

Draft/Pay Order in favour of Airports Authority of India, _______

Airport.

iii. Affidavit declaring assets & liabilities of the tenderer in case the

reserve price for the contract is less than Rs. 0.50 lacs per month.

iv. For the contract carrying reserve price more than Rs. 0.50 lacs permonth, tenderer(s) should submit the following documents:

Last financial year's filed income tax return including documents, such as:

(a) Profit & Loss Accounts, Balance Sheet.



103

(b) Assessment Order for last completed assessment. In case no

assessment is completed an affidavit to this effect should be

furnished.

(c) Attested copies of Memorandum and Articles of Association in

case of registered Firm/Co-operative Societies.

(d) Partnership deed in case of partnership Firm.

(e) Any other relevant information/document which tenderer(s)

may consider appropriate including their expertise andexperience in the areas other than for which tenders invited by

AAI.

4. It may be clearly noted that in case tender(s) submitted by tenderer(s) not

accompanied by all or any of the documents stated at (i) to (iv) of para 4, such

tender(s) will be rejected by the Authority out-rightly.

5. Envelope ‘B’ which shall be opened after scrutiny of the basic documents of

Envelope ‘A’, shall contain ‘Form of Tender’ indicating financial bid to be quoted

by the tender and no other documents.

The amount of licence fee should be conspicuously written both in figures as

well as in words. Any over-writing, correction or insertion should be duly signed

by the authorised signatories of the tenderer(s).



104

6. Tenderer(s) should clearly indicate the name & address of their Firm/

Company/Individual, as the case may be, on both the Envelope and should clearly

indicate the name of the facility for which tender(s) have been invited.

7. It may be noted that the Earnest Money Deposit of the successful bidder may

be forfeited and the bidder may be debarred for further participation in AAI's

tender(s) for a period of three years, on account of non-completion of the

following:

(a) Acceptance of the offer within _______ days;

(b) Payment of advance licence fee for one month within ____ days from the

receipt of the award letter;

(c) (i) Payment of Security Deposit equal to ________ months of quoted

licence fee in the form of Fixed Deposit Receipt (FDR)/Bank

Guarantee (where applicable) of a Nationalised/Scheduled Bank in

favour of Airport Director, AAI, _______Airport within _______days

for the licence and;

(ii) Payment of Security Deposit equal to ___________________for

electricity/water/telephone etc.

(d) Execution of the Agreement within _______ days; and

(e) Commencement of the facility within ______days.



105

8. Tender(s) will remain valid for a period of 180 days from the date of

opening of the Financial Bid in Envelope ‘B’. If any tenderer withdraw during the

validity period, his Earnest Money Deposit will be forfeited. However, the

tenderer(s) can withdraw their Earnest Money Deposit after the validity is over or

may extend the validity of their tender(s) with the consent of AAI.

9. The tenderer(s) shall give the list of his near relatives employed in AAI.

10. The successful bidder shall intimate the names of the persons employed by

him or going to employ, who are near relatives* of AAI employees.

11. Any breach of the conditions at Sl. No. 10, 11 & 12 above by the successful

tenderer(s) would render him/them liable to be removed from AAI as a

licensee/contractor and shall be debarred from issuing tender papers for the

commercial contracts for a period of ___ years.

12. All the above guidelines will form part & parcel of the Notice Inviting

Tenders (NIT).

13. AAI reserves itself the right to extend the date of receiving/opening of the

bids as well as to extend the validity of the tender.

14. AAI reserves right to reject any or all tender(s) in part or in full without

assigning any reason.

*Note: “By the term 'near relative is meant wife, husband and dependent parents, grand parents, children, grand children, brothers, sisters,uncle, aunts, cousins and their corresponding in laws”.



106

TENDER SET NO _________


FORM OF TENDER

1. Tender for : __________________________________________________

2. Period of Licence : _________________________

3. Minimum Reserved Licence Fee : _________________________(per month) [in words & figure] _________________________

4. Name & Address of the tenderer : _________________________(in block letters) : _________________________

5. Status of the tenderer (Proprietorship/ : _________________________Partnership/Limited Company) _________________________

6. Name of Proprietor, Partners/ : _________________________Managing Director as the case _________________________may be, to be indicated. _________________________

7. Offer of the licence fee per month for : _________________________the first year. Beyond one year period _________________________of licence, the amount of quoted licence _________________________fee shall be compounded by 10% every _________________________year)

8. I/We have carefully read and understood the terms and conditions of thelicence as contained in Tender Documents issued by the Airports Authorityof India (AAI) including the following:



107

(a) Earnest Money Deposit of Rs.________ is liable to be forfeited by

AAI, if on award of licence, I/We do not accept the award or do notfulfill any of the conditions stipulated in tender documents, within theprescribed time.

(b) On account of non-acceptance of award or on account of non-completion of tender conditions within the prescribed time, I/We shallbe debarred by AAI for further participation in the tenders at itsairports or at any other place under the control of AAI, for a period of three years.

(c) In case the documents submitted by my/our firm alongwith tender arefalse/incorrect, the tender of my/our firm will be liable to be rejectedby g iv ing reasons . In addition, AAI reserves its right to forfeit

the EMD of my/our firm and debar my/our firm from participation inthe further tender of AAI.

9. AAI reserves itself the right to reject the conditional offer without assigningany reason thereto.

10. The AAI does not bind itself to accept the highest or any tender and reservesto itself the right of accepting the whole or any part of the tender and thetenderer shall be bound to provide the service at the rate quoted.

Signature of the Tenderer___________________

Name __________________________________

Status __________________________________

Address _________________________________

________________________________________

Tel No (Office) ___________________________

Residence _______________________________Witness:1)2)



108

DOCUMENT NO ________

LICENCE AGREEMENT

SUBJECT: __________________

THIS AGREEMENT made this______ day of ______ of Two Thousand

______________ between the Airports Authority of India, a body corporate

constituted by the Central Government under the Airports Authority Act (Act

____of 1994) and having its corporate office at ___________ and offices at all the

Airports in India represented by ___________ hereinafter called the 'Authority'

(which term shall, unless excluded by or is repugnant to the context, be deemed to

include its Chairman, or Member, Executive Directors, Airport Directors, Officers

or any of them specified by the Chairman in this behalf, and shall also include its

successors and assigns) of the one part, and ________ represented by _______ of

the other part, hereinafter called the 'Licensee' (which term shall unless excluded

by or is repugnant to the context, be deemed to include its heirs, representative,

successors and assigns of the Licensee).

WHEREAS the Authority is entitled in 'Law' to grant licence at its

_________ Airport for the purpose of _______ so as to provide amenities and

facilities to the passengers and visitors at airport and is in possession of space,

more fully described in the schedule hereunder and in the plan annexed to this

agreement, hereinafter referred to as the premises.





110

3. That in addition to the above said licence fee, Licensee shall pay all charges

towards consumption of electricity and water as may be due as determined

by the Authority and at the rate(s) fixed by it from time to time. Such

charges shall be paid within the date(s) specified in the bill(s). The Licensee

shall have to provide his own meter(s) for the purpose, failing which

Licensee shall be billed on assessed consumption. In default of payment of

said charges, the Authority may without prejudice to its other rights

disconnect or cause to be disconnected the water and electricity to the saidpremises without any notice and the Licensee shall not be entitled to any

compensation whatsoever on account of any such disconnection.

4. That the Licensee shall pay all rates, assessments, out goings and other taxes

as leviable on the Licensee in ‘Laws’.

5. That the Licensee shall make payment of licence fee etc. by cheque/demand

drafts drawn on local banks. No outstation cheque shall be accepted in

payment of licence fee etc.

6. That in the event of failure to pay the licence fee and other charges by due

dates, simple interest @ 18% per annum be payable on all delayed payments

without prejudice to the Authority's other rights and remedies.



111

7. That the Licensee shall deposit a sum of Rs. _______ (Rupees __________)

i.e. an amount equal to ________ months licence fee as Security Deposit in

the form of Bank Fixed Deposit Receipts (FDRs)/ Bank Guarantee from a

Nationalised/Scheduled Bank in favour of Airport Director, AAI,

__________ Airport. In the event of the Licensee committing any breach of

the terms & conditions of the licence agreement, the Authority may without

prejudice to other rights and remedies be entitled to forfeit the Security

Deposit or any part thereof. In such an even he shall pay in the same manner

as stated above such additional sum immediately as he may be called upon

by the Authority to pay, so that the Security Deposit shall at all times duringthe continuance of these presents, be for the same amount. On the expiration

or earlier determination of the licence the Authority shall return the Security

Deposit or part thereof which has not been forfeited as aforesaid, to him,

without interest.

8. That the Licensee shall deposit in cash/cheque Rs._______ (Rupees

______________only) as Security Deposit towards Electricity Charges.

9. That the Licensee shall equipped himself with all necessary permits, licences

and such other permissions as may be required under the law in force at any

time with regard to the operation of the subject licence.

10. That the Licensee shall maintain such regular and proper account books

alongwith other supporting documents regarding sales effected by the

Licensee in the said premises and said accounts/documents shall all the

times be kept open for inspection by Authority in such manner as may be

prescribed. The Licensee shall provide to the Authority, if so required by



112

the Authority, Statements of audited Accounts in such manner and within

such period as the Authority may prescribe.

11. That the Licensee shall have no objection to the Authority for granting any

other licence for similar Facility at the airport premises where the Licensee

is rendering such services.

12. That Authority shall provide bare space for the subject services and other

expenses of any kind for establishment and rendering of the services shall be

incurred by the Licensee. However, provisions of electricity, water and

drainage connections, as the case may be, if so required, for the smoothoperation of the services shall be provided by the Authority.

13. All the times during the currency of the licence agreement, it shall be the

responsibility of the licensee to obtain proper fire insurance coverage

including theft and burglary in respect of all the movable and immovable

assets stored or used in the licensed premises and authority shall not be

responsible for any loss or damage caused to the licensee on any accounts

whatsoever.

14. That Licensee shall operate the subject facility by charging the rate from

users, as may be approved in advance by the Authority. Licensee shall

exhibit the said approved charges at a conspicuous place inside the licensed

premises.

15. That the authority reserves to itself the right to change the location of the

premises at any time and may at its discretion to call upon the Licensee to

vacate the site and may give him an alternative premises for the purpose of



113

this licence. In such a case, the Licensee shall be bound to vacate the

premises immediately and accept the said alternate premises. The entire

expenditure on such shifting shall be borne by him and the licensee shall not

be entitled to claim any compensation or revision in the licence fee on that

score.

16. The Licensee shall use the premises for the bonafide purpose as provided in

the Agreement, more particularly described in the enclosed schedule, for the

use of all passengers and bonafide visitors to the Airport and Officers of the

Authority and the staff of various Airlines using the Airport and for no other

purpose.

17. The Licensee shall not erect or display any advertisement or signboards

except after obtaining the prior approval in writing of the Authority.

18. The Licensee shall not terminate the licence before the expiry of the period

of the licence except by giving 180/90/30 days notice in writing, otherwise

the Licensee shall be liable to pay to the Authority (without any demur or

question) such amount of money as the Authority may decide as due to it by

the Licensee. The licence can be terminated by the Authority by giving

180/90/30 days notice in writing without assigning any reason thereto.

19. In the event of any default, failure, negligence or breach, in the opinion of

the Authority on the part of the Licensee in complying with all or any of the

conditions of the licence agreement, the Authority will be entitled and be at

liberty to determine the licence forthwith and resume possession of the

premises without payment of any compensation or damages and also forfeit



114

in full or in part the amount deposited by the Licensee for due performance

of Agreement.

20. The Authority and the Licensee further agree that they are bound by the

General Terms & Conditions found in Annexure ‘X’ annexed hereto.

SIGNED BY ___________________________ AIRPORT DIRECTOR, AIRPORTS AUTHORITY OF INDIA, _________________________________ AIRPORT, FOR AND ON BEHALF OF THE AIRPORTS AUTHORITY OF INDIA, IN THE PRESENCE OF:

WITNESS:

1.

2.

SIGNED BY ________________________ FOR AND ON BEHALF OF _________________________________________ IN THE PRESENCE OF:

WITNESS:

1.

2.



115

SCHEDULE OF PREMISES

1. Space measuring _______________Sqm.

2. Location at ___________________

3. Purpose ___________________



116

GENERAL TERMS & CONDITIONS

The Authority hereby covenants with the Licensee as follows:

1. The Licensee, his servants and agents shall be entitled to use all ways, paths

and passages as may from time to time be maintained on the said airport

ground subject to such rules and regulations as may be imposed by the

lawful authorities of the airport ground.

2. The Licensee paying the licence fee and performing the covenants hereincontained and on his part to be performed shall and may peacefully possess

and enjoy the premises with use of the ways, paths and passages as aforesaid

during the said term without any lawful interruption from or by the

Authority or any person claiming under the Authority.

3. Any notice required to be served on the Licensee under this Agreement shall

be deemed to have been served if delivered at or sent by registered post to

his last known address or to his authorised representative or agent.

Similarly, any notice to be given to the Authority under this agreement shall

be deemed to have been served if delivered at or sent by Registered post to

the Authority.

i. The period of notice given under this Agreement will count from thedate of delivery (receipt of notice by either side.

4. Subject as herein before otherwise provided, all notices to be given on behalf

of the Authority and all other actions to be taken on behalf of the Authority,

may b e given or taken on behalf of the Authority by the Airport Director of



117

the Airport or by any other officer for the time being authorised by or

entrusted with the functions, duties and powers of the said Airport Director,

in respect of the airport under his charge.

5. (a) The Licensee shall not, unless with the written consent of the

Authority, create a sub-contract of any description with regard to this

licence or any part thereof, nor shall be without such written consent

as aforesaid, assign or transfer his licence or any part thereof.

(b) The Licensee shall use the premises only for the purpose indicated in

this Agreement and for no other purpose whatsoever.

6. The Licensee his agents and servants shall observe, perform and comply

with all rules and regulations of the Shop and Establishment Act, Factories

Act, Industrial Disputes Act, Minimum Wages Act and the provisions of any

statutory law applicable to the Licensee including any rules and regulations

made by the Authority, Civil Aviation Department or any other Department

of Government and or local body or administration in force from time to

time and to the business which the Licensee is allowed to carry on under this

Agreement and to the area in which the said premises are located.

7. (a) The Licensee shall Indemnify the Authority from/against any claims

made or damages suffered by the Authority by reason of any default

on the part of the Licensee in the due observance and performance of

the provisions of any law which may be related to the purpose of this

Agreement and to the area in which premises are located.



118

(b) The Authority shall not be responsible in any way for loss or damage

by any means causes to the Licensee's stock or property.

8. The Licensee shall at his own cost maintain the premises in a proper state of

cleanliness and abide by such directions as may be given by the Authority

and such other departments as may be entrusted by the rules and regulations

with the works of inspection and enforcement about the conditions of

sanitation, cleanliness and hygiene. If the premises is not maintained in

reasonably clean condition by the Licensee, Airport Director shall have

powers to get the premises cleaned at the risk & cost of the Licensee and

recover liquidated damages at the rate of Rs.100/- per day for each defaultupto 7 days and thereafter Rs.200/- per day and can take other actions

including termination of the licence.

9. The Licensee shall comply with the requirements of all standard health

clauses including those given below:

i. The Airport Health Officer/Medical Officer of AAI or persons

authorised by them may without notice, enter the premises any time

and inspect the premises, materials, instruments and implements etc.

used by the Licensee.

ii. All the instructions given by the Airport Health Officer/Medical

Health Officer of AAI or any persons authorised by them in the

maintenance of public health of the Airport including sanitation

control prevention of infectious diseases, control and prevention of

nuisance from insects, rodents, or any other source, shall be carried

out by them and his agent and servants.



119

iii. The Licensee shall notify to the Airport Health Officer whenever any

person working under him is suffering or suspected to be suffering or

convalescing from any infectious disease. The Airport Health Officer

may medically inspect the said person or any person who is suspected

to have been in contact with the person and take any precautionary

and preventive measures considered necessary.

iv. The Licensee his agents and servants shall not without consent of the

Airport Health Officer, interfere with injure, destroy or render useless

any work executed or any materials or things placed in, under or uponany land or building by or under the orders of the Airport Health

Officer with the object of preventing the breeding or entry of

mosquitoes or maintenance of sanitation.

v. The Licensee, his agents and servants shall not abuse the water

sources, and drainage facilities in the airport area so as to create a

nuisance or insanitary situation prejudicial to public health.

vi. In the event of any default, failure, negligence or breach in the opinion

of the Authority, on the part of the licensee in complying with either

of these conditions specified in the foregoing sub-clause (i) to (v), the

Authority will be entitled and be at liberty to determine the Licensee

forthwith and resume a possession of the premises without payment of

any compensation or damages and forfeit in full or in part the amount

deposited by the Licensee for due performance of the Agreement.



120

10. The Licensee shall employ only such servants as shall have good character

and as well behaved and skillful in their business. He shall furnish the

Authority in writing with the names, parentage, age, residence and specimen

signature or thumb impression of all servants whom he proposes to employ

for the purpose of this Agreement before they are so employed and the

Authority shall be at liberty to forbid the employment of any person whom it

may consider undesirable. The servants employed by him shall be under the

general discipline of the Authority and shall confirm to such directions as

may be issued by the Authority in respect of points or routes of entry to and

exit from the premises and in respect of the use of toilet and wash rooms.

He shall also have the Character of all persons employed by him verified bythe police to the satisfaction of the Authority, before the employment.

11. (a) The Licensee would be required to install adequate number (as may

be decided by Fire Officer or any other authorised Officer of AAI

depending upon the area of the licensed premises) of minimum a 2.5

Kg. CO2 fire extinguisher in the licensed premises at his cost before

commencement of business.

(b) No wooden partition/inflammable materials shall be permitted in the

licensed premises. The material to be used for partition/fabrication of

the shop/office premises shall be as per the specification given by

AAI and to be got approved by AAI in advance.

(c) Licence shall not use a naked light or cause or permit any such light to

be used in the licensed premises.



121

12. The Licensee shall not damage the premises for any part of the Airport

premises and in the event of any damage being caused to the same

intentionally or otherwise, by the Licensee, or his employees or invitees or

customers, the Authority shall be entitled to repair the damage or make the

requisite replacement and call upon the Licensee to replacement and call

upon the Licensee to reimburse cost thereof which the Licensee undertakes

to pay forthwith on demand.

13. The Licensee shall not store or bring or keep in the premises heavy articles

so as to injure or damage the premises or keep goods of combustible or

inflammable nature unless required for executing the licence.

14. (a) The Licensee shall not use electrical heater, toaster and other allied

appliances in the premises for preparation of tea, coffee and for

heating of food etc. unless specifically provided under the Agreement

to perform contractual obligations.

(b) The Licensee hereby agrees to provide necessary training to the

employees posted in the licensed premises for handling fire

extinguisher as provided in the terminal/licensed premises.

15. The Licensee will, during the continuance of this licence insure against any

claim for workmen's compensation or otherwise of all persons employed by

him in connection with his business to be carried on as aforesaid with such

insurance company as the Authority shall approve of and shall produce for

inspection on demand by the Authority all policies in respect thereof and the

receipts from time to time for current premium.



122

16. In the case of such breach of the terms of this licence as minor offenses and

complaints coming to its notice for which in the opinion of the Authority this

Agreement need not be terminated, the Authority may at its discretion

recover compensation from the Licensee upto the limit of the security

deposit of the Licensee. The decision of the Authority in this respect will be

final and binding on the Licensee.

17. The Licensee shall not hold or permit to be held any public or private

auction in the licensed premises.

18. It shall be obligatory for the Licensee to keep in stock and in case they areintended for distribution, distribute the same and display, literature,

produced and released by the Publication Division of Government of India

and/or Tourism Department of the Central Government or of the State

Government within whose jurisdiction the Airport is situated on such terms

& conditions as may be fixed by the said Publications Division or said

Tourist Department.

19. The Licensee shall not stock, sell, display, exhibit for sale any books,

magazines, newspapers or periodicals, statues, idols or other articles which

are repugnant to morals or indecent and immoral, improper or otherwise

objectionable in character, it being expressly agreed that the decision of the

Authority shall be conclusive in this behalf and absolutely binding on the

Licensee and shall not be subject to any dispute or review. Apart from any

other legal/disciplinary action, the Licensee shall immediately remove such

book, journal or articles from premises, if, as decided by the Authority it is

objectionable in any manner to keep, exhibit or sell the same.



123

20. The Licensee shall maintain a complaint book in a prominent place in the

premises and in such a way that it is easily accessible to any person who

wishes to record any complaint and the said book shall be open for

inspection by the Airport Director of the Authority.

21. If because of any strike or lock-out either in the Airport or in any airline, the

Licensee is unable to function or his business is affected, the Authority shall

not be liable for any loss which the Licensee may suffer in such an event.

However, rebate in the licence fee due to ban on visitors entry at the airport

and due to natural calamities and due to declaration of the closure of the

airport for total operation shall be granted as per the merit of the case andpolicy laid down by AAI from time to time.

22. In the event of the Licensee being prohibited from selling one or more

articles in the premises because of Government Laws/Rules/Regulations/

Orders, the Authority shall not be liable for any loss suffered by the

Licensee in such an event the Licensee shall not be entitled to any reduction

in the fees payable to the Authority or permission for sale of additional

items.

23. The Licensee shall deposit duplicate keys of the premises with the Authority

whenever the Airport Director demands and permit the Authority to make

use of the keys during the emergency. The Licensee shall not remove or

replace the lock on the outer door or change the locking device on the said

outer door of the shop.

24. The Authority do not recognise any Association of the Traders and in case

any negotiation/bargain necessary with regard to the clarification of the



124

Terms & Conditions of the Licence or modification thereof such

negotiations should be sought by the Licensee alone and no collective

representation/bargaining will be entertained.

25. On expiry of the licence period or on termination of the licence by the

Authority on account of any breach on the part of the Licensee, the Licensee

shall deliver the possession of the premises in good condition and in

peaceful manner alongwith furniture, fittings, equipments and installations,

if any, provided by the Authority. Further, Licensee shall remove his/their

goods and other materials from the premises immediately, failing which

Authority reserve its right to remove such goods/materials at the cost & risk of the Licensee and demand payment for such removal. If such payment is

not made within 10 days, Authority shall be at liberty to dispose off the

goods/materials of the Licensee by public auction to recover the cost. The

Licensee shall not be entitled to raise any objection in such an eventuality.

26. The licence herewith granted shall not be construed in any way as giving or

creating any other right or interest in the said space/building(s)/land/

garden/tank/premises to or in favour of the licensee but shall be construed to

be only as a licence in terms & conditions herein contained.

27. The Authority, its servants and agents shall at all times have the absolute

right of entry into the said premises.

28. The provision of the Public Premises (Eviction of Unauthorised Occupants)

Act, 1971 and the rules framed thereunder which are now in force or which

may hereafter come into force shall be applicable for all matters provided in

the said Act.



125

29. All disputes and differences arising out of or in any way touching or

concerning this Agreement (except those the decision whereof is otherwise

herein before expressly provided for or to which the Public Premises

[Eviction of Unauthorised Occupants] Act and the rules framed thereunder

which are now enforce or which may hereafter come into force are

applicable), shall be referred to the sole arbitration of a person to be

appointed by the Chairman/Member of the Authority. The award of the

arbitrator so appointed shall be final and binding on the parties. The

A r b it r a t i o n & Co n c i l i a t i o n A c t 1 9 9 6 shall be applicable.

It will be no bar that the Arbitrator appointed as aforesaid is or has been an

employee of the Authority and the a p p o i n t m e n t of the Arbitrator will

not be challenged or be open to question in any Court of Law, on this

account.

30. In case of any dispute where legal action is compelled to be initiated by anyof the party, jurisdiction of the court shall be the city/town/district where the

airport is located

(SIGNATURE OF LICENSEE)



126

ANNEXURE - XV

DOCUMENT NO________

LICENCE AGREEMENT (For Space)

SUBJECT: __________________

THIS AGREEMENT made this______ day of ______ of Two Thousand

___________between the Airports Authority of India, a body corporate constituted

by the Central Government under the Airports Authority Act (Act ____ of 1994)and having its corporate office at ____________ and offices at all the Airports in

India represented by ___________ hereinafter called the 'Authority' (which term

shall, unless excluded by or is repugnant to the context, be deemed to include its

Chairman, or Member, Executive Directors, Airport Directors, Officers or any of

them specified by the Chairman in this behalf, and shall also include its successors

and assigns) of the one part, and ________ represented by _______ of the otherpart, hereinafter called the 'Licensee' (which term shall unless excluded by or is

repugnant to the context, be deemed to include its heirs, representative, successors

and assigns of the Licensee).

WHEREAS the Authority is the owner of the building more fully described in the

schedule hereunder and hereinafter referred to as the premises and whereas the

Licensee is desirous of using the same for the purposes ___________________

_____________________________.

WHEREAS the Authority has agreed to grant licence to the Licensee for the

said purpose on terms and conditions mutually agreed upon as hereunder :



127

NOW, THEREFORE, this indenture witnesseth:

1. That this licence shall commence from _________ and shall be valid upto

________ i.e. for the period of ________. The Licence period may be

further extended as mutually agreed between the parties.

2. The Licence can be terminated by either side by giving 90/30 days notice in

writing.

3. The Authority can also terminate the Licence on a short notice on account of unsatisfactory performance.

4. That the licence fee of Rs.___________ per Sqm. per month for the allotted

area of _______ sqm. shall be payable in advance on or before 10 th day of

each month. The Licence fee is subject to revision at the discretion of the

Authority from time to time and such increase of licence fee shall be payable

by the licensee without any protest or dispute.

5. That the Licensee shall pay all rates, assessment, outgoing and other taxes

whatsoever in respect of the said premises.

6. That in the event of failure to pay the licence fee and other charges by due

dates, simple interest @ 18% per annum be payable on all delayed payments

without prejudice to the Authority's other rights and remedies.

7. That the Licensee shall pay the charges for the consumption of the electricity

and water consumed in the premises and/or for the purpose of use of the said



128

premises as become due and payable and in accordance with the directions

of the Authority and at the rates fixed by it from time to time.

8. The Licensee shall maintain at his own cost all the electric and water fittings

and installations and such other electric and other equipments including Fire

Alarm System as may be provided by the Authority in the said premises or

as may hereafter be provided by the said Authority in the said premises.

9. The licensee shall not use the premises for any purpose other than that for

which the licence has been granted.

10. The Licensee shall not erect, display or use any high powered electric light

or any electric sky signs or other electric lights or installations for purposes

of advertisement or any other type of advertisement or signboards upon the

said premises without the previous permission in writing from the Authority.

11. The Licensee shall provide such person or persons for watch and ward duty

in the premises as he may be directed by the authority for the security and

safety of the premises.

12. The Licensee shall also provide fire fighting equipment and appliances and

maintain the same continuously in a fit and proper condition. The authority

is entitled to direct and specify the number, quality and specifications of the

said fire fighting equipment and appliances.

13. The premises are and shall be deemed to be public premises as defined in the

Public Premises (Eviction of Unauthorised occupants) Act, now in force and



129

the said Act or any other Act touching the subject that may hereafter come

into force and the rules framed thereunder.

14. All the times during the currency of the licence agreement, it shall be the

responsibility of the licensee to obtain proper fire insurance coverage

including theft and burglary in respect of all the movable and immovable

assets stored or used in the licensed premises and authority shall not be

responsible for any loss or damage caused to the licensee on any accounts

whatsoever.

15. The terms and conditions mentioned in Annexure-I to this licence shall bedeemed to be part and parcel of this agreement and the licensee and the

authority shall be bound by the same.

16. Any modification/construction plans, at the allotted space, shall be taken up,

only after the approval of Airport Director.

SIGNED BY ___________________________ AIRPORT DIRECTOR, AAI,_________________________________AIRPORT FOR AND ON BEHALF OF THE AAI IN THE PRESENCE OF:

WITNESS:

1.

2.

SIGNED BY ________________________ FOR AND ON BEHALF OF _________________________________________ IN THE PRESENCE OF:

WITNESS:

1.2.



130

SCHEDULE OF PREMISES

1. Space measuring _______________Sqm.

2. Location at ___________________

3. Purpose ___________________



131

GENERAL TERMS & CONDITIONS

The Authority hereby covenants with the Licensee as follows:

1. The Licensee, his servants and agents shall be entitled to use all ways, paths

and passages as may from time to time be maintained on the said airport

ground subject to such rules and regulations as may be imposed by the

lawful authorities of the airport ground.

2. The Licensee paying the licence fee and performing the covenants herein

contained and on his part to be performed shall and may peacefully possess

and enjoy the premises with use of the ways, paths and passages as aforesaid

during the said term without any lawful interruption from or by the

Authority or any person claiming under the Authority.

3. Any notice required to be served on the Licensee under this Agreement shall

be deemed to have been served if delivered at or sent by registered post to

his last known address or to his authorised representative or agent.

Similarly, any notice to be given to the Authority under this agreement shall

be deemed to have been served if delivered at or sent by Registered post to

the Authority.

i. The period of notice given under this Agreement will count from thedate of delivery (receipt of notice by either side.

4. Subject as herein before otherwise provided, all notices to be given on behalf

of the Authority and all other actions to be taken on behalf of the Authority,

may be given or taken on behalf of the Authority by the Airport Director of



132

the Airport or by any other officer for the time being authorised by or

entrusted with the functions, duties and powers of the said Airport Director,

in respect of the airport under his charge.

5. (a) The Licensee shall not, unless with the written consent of the

Authority, create a sub-contract of any description with regard to this

licence or any part thereof, nor shall be without such written consent

as aforesaid, assign or transfer his licence or any part thereof.

(b) The Licensee shall use the premises only for the purpose indicated in

this Agreement and for no other purpose whatsoever.

6. The Licensee his agents and servants shall observe, perform and comply with

all rules and regulations of the Shop and Establishment Act, Factories Act,

Industrial Disputes Act, Minimum Wages Act and the provisions of any

statutory law applicable to the Licensee including any rules and regulations

made by the Authority, Civil Aviation Department or any other Department of

Government and or local body or administration in force from time to time and

to the business which the Licensee is allowed to carry on under this Agreement

and to the area in which the said premises are located.

7. (a) The Licensee shall Indemnify the Authority from/against any claims

made or damages suffered by the Authority by reason of any default

on the part of the Licensee in the due observance and performance of

the provisions of any law which may be related to the purpose of this

Agreement and to the area in which premises are located.



133

(b) The Authority shall not be responsible in any way for loss or damage

by any means causes to the Licensee's stock or property.

8. The Licensee shall at his own cost maintain the premises in a proper state of

cleanliness and abide by such directions as may be given by the Authority

and such other departments as may be entrusted by the rules and regulations

with the works of inspection and enforcement about the conditions of

sanitation, cleanliness and hygiene. If the premises is not maintained in

reasonably clean condition by the Licensee, Airport Director shall have

powers to get the premises cleaned at the risk & cost of the Licensee and

recover liquidated damages at the rate of Rs.100/- per day for each defaultupto 7 days and thereafter Rs.200/- per day and can take other actions

including termination of the licence.

9. The Licensee shall comply with the requirements of all standard health

clauses including those given below:

ii. The Airport Health Officer/Medical Officer of AAI or persons

authorised by them may without notice, enter the premises any time

and inspect the premises, materials, instruments and implements etc.

used by the Licensee.

iii. All the instructions given by the Airport Health Officer/Medical

Officer of AAI or any persons authorised by them in the maintenance

of public health of the Airport including sanitation control prevention

of infectious diseases, control and prevention of nuisance from

insects, rodents, or any other source, shall be carried out by them and

his agent and servants.



134

iv. The Licensee shall notify to the Airport Health Officer whenever any

person working under him is suffering or suspected to be suffering or

convalescing from any infectious disease. The Airport Health Officer

may medically inspect the said person or any person who is suspected

to have been in contact with the person and take any precautionary

and preventive measures considered necessary.

v. The Licensee his agents and servants shall not without consent of the

Airport Health Officer, interfere with injure, destroy or render useless

any work executed or any materials or things placed in, under or uponany land or building by or under the orders of the Airport Health

Officer with the object of preventing the breeding or entry of

mosquitoes or maintenance of sanitation.

vi. The Licensee, his agents and servants shall not abuse the water

sources, and drainage facilities in the airport area so as to create a

nuisance or insanitary situation prejudicial to public health.

vii. In the event of any default, failure, negligence or breach in the opinion

of the Authority, on the part of the licensee in complying with either

of these conditions specified in the foregoing sub-clause (i) to (v), the

Authority will be entitled and be at liberty to determine the Licensee

forthwith and resume a possession of the premises without payment of

any compensation or damages and forfeit in full or in part the amount

deposited by the Licensee for due performance of the Agreement.



135

10. The Licensee shall employ only such servants as shall have good character

and as well behaved and skillful in their business. He shall furnish the

Authority in writing with the names, parentage, age, residence and specimen

signature or thumb impression of all servants whom he proposes to employ

for the purpose of this Agreement before they are so employed and the

Authority shall be at liberty to forbid the employment of any person whom it

may consider undesirable. The servants employed by him shall be under the

general discipline of the Authority and shall confirm to such directions as

may be issued by the Authority in respect of points or routes of entry to and

exit from the premises and in respect of the use of toilet and wash rooms.

He shall also have the Character of all persons employed by him verified bythe police to the satisfaction of the Authority, before the employment.

11. (a) The Licensee would be required to install adequate number (as may

be determined by Fire Officer/any authorised officer of AAI

depending upon the area of the premises) of 2.5 Kg. CO2 fire

extinguisher/any other fire fighting device in the licensed premises at

his cost before commencement of business.

(b) No wooden partition/inflammable materials shall be permitted in the

licensed premises. The material to be used for partition/fabrication of

the shop/office premises shall be as per the specification given by

AAI and to be got approved by AAI in advance.

(c) Licence shall not use a naked light or cause or permit any such light to

be used in the licensed premises.



136

12. The Licensee shall not damage the premises for any part of the Airport

premises and in the event of any damage being caused to the same

intentionally or otherwise, by the Licensee, or his employees or invitees or

customers, the Authority shall be entitled to repair the damage or make the

requisite replacement and call upon the Licensee to replacement and call

upon the Licensee to reimburse cost thereof which the Licensee undertakes

to pay forthwith on demand.

13. The Licensee shall not store or bring or keep in the premises heavy articles

so as to injure or damage the premises or keep goods of combustible or

inflammable nature.

14. (a) The Licensee shall not use electrical heater, toaster and other allied

appliances in the premises for preparation of tea, coffee and for

heating of food etc. unless specifically provided under the Agreement

to perform contractual obligations.

(b) The Licensee hereby agrees to provide necessary training to the

employees posted in the licensed premises for handling fire

extinguisher as provided in the terminal/licensed premises.

15. The Licensee will, during the continuance of this licence insure against any

claim for workmen's compensation or otherwise of all persons employed by

him in connection with his business to be carried on as aforesaid with such

insurance company as the Authority shall approve of and shall produce for

inspection on demand by the Authority all policies in respect thereof and the

receipts from time to time for current premium.





138

& conditions as may be fixed by the said Publications Division or said

Tourist Department.

20. The Licensee shall not stock, sell, display, exhibit for sale any books,

magazines, newspapers or periodicals, statues, idols or other articles which

are repugnant to morals or indecent and immoral, improper or otherwise

objectionable in character, it being expressly agreed that the decision of the

Authority shall be conclusive in this behalf and absolutely binding on the

Licensee and shall not be subject to any dispute or review. Apart from any

other legal/disciplinary action, the Licensee shall immediately remove such

book, journal or articles from premises, if, as decided by the Authority it isobjectionable in any manner to keep, exhibit or sell the same.

21. The Licensee shall maintain a complaint book in a prominent place in the

premises and in such a way that it is easily accessible to any person who

wishes to record any complaint and the said book shall be open for

inspection by the Airport Director of the Authority or his authorised

representative.

22. If because of any strike or lock-out either in the Airport or in any airline, the

Licensee is unable to function or his business is affected, the Authority shall

not be liable for any loss which the Licensee may suffer in such an event the

Licensee shall not be entitled to any reduction in the fees payable to the

Authority .

23. In the event of the Licensee being prohibited from selling one or more

articles in the premises because of Government Laws/Rules/Regulations/

Orders, the Authority shall not be liable for any loss suffered by the



139

Licensee in such an event the Licensee shall not be entitled to any reduction

in the fees payable to the Authority or permission for sale of additional

items.

24. The Licensee shall deposit duplicate keys of the premises with the Authority

whenever the Airport Director demands and permit the Authority to make

use of the keys during the emergency. The Licensee shall not remove or

replace the lock on the outer door or change the locking device on the said

outer door of the shop (without written approval of Airport Director/Station

Incharge).

25. The Authority do not recognise any Association of the Traders and in case

any negotiation/bargain necessary with regard to the clarification of the

Terms & Conditions of the Licence or modification thereof such

negotiations should be sought by the Licensee alone and no collective

representation/bargaining will be entertained.

26. On expiry of the licence period or on termination of the licence by the

Authority on account of any breach on the part of the Licensee, the Licensee

shall deliver the possession of the premises in good condition and in

peaceful manner alongwith furniture, fittings, equipments and installations,

if any, provided by the Authority. Further, Licensee shall remove his/their

goods and other materials from the premises immediately, failing which

Authority reserve its right to remove such goods/materials at the cost & risk

of the Licensee and demand payment for such removal. If such payment is

not made within 10 days, Authority shall be at liberty to dispose off the

goods/materials of the Licensee by public auction to recover the cost. The

Licensee shall not be entitled to raise any objection in such an eventuality.



140

27. The licence herewith granted shall not be construed in any way as giving or

creating any other right or interest in the said space/building(s)/land/

garden/tank/premises to or in favour of the licensee but shall be construed to

be only as a licence in terms & conditions herein contained.

28. The Authority, its servants and agents shall at all times have the absolute

right of entry into the said premises.

29. The provision of the Public Premises (Eviction of Unauthorised Occupants)

Act, 1971 and the rules framed thereunder which are now in force or whichmay hereafter come into force shall be applicable for all matters provided in

the said Act.

30. All disputes and differences arising out of or in any way touching or

concerning this Agreement (except those the decision whereof is otherwise

herein before expressly provided for or to which the Public Premises

[Eviction of Unauthorised Occupants] Act and the rules framed thereunder

which are now enforce or which may hereafter come into force are

applicable), shall be referred to the sole arbitration of a person to be

appointed by the Chairman/Member of the Authority. The award of the

arbitrator so appointed shall be final and binding on the parties. The

A r b it r a t i o n & Co n c i l i a t i o n A c t 1 9 9 6 shall be applicable.

It will be no bar that the Arbitrator appointed as aforesaid is or has been an

employee of the Authority and the a p p o i n t m e n t of the Arbitrator will

not be challenged or be open to question in any Court of Law, on this

account.



141

31. In case of any dispute where legal action is compelled to be initiated by any

of the party, jurisdiction of the court shall be the city/town/district where the

airport is located

(SIGNATURE OF LICENSEE)



142

ANNEXURE - XVI

FORM OF BAN K GUARANTEE

(To be executed on Non-Judicial Stamp Paper of Rs.100/- by the successful

tenderer)

WHEREAS by a Licence Agreement dated __________________ made

between AIRPORTS AUTHORITY OF INDIA, the Licensor (hereinafter called

“the AUTHORITY) of the one part and ________________________________

__________________________________________________________________

__________________________________________________________________

_________________ (hereinafter referred to as “the Licensor”) of the other part,

the Authority has granted to the Licensee the licence for operating the

___________________________________________ and the Licence Fee and

Royalty and other charges and for the due and performance of the convenants and

conditions as stated or contained in the said Licence Agreement.

1. Now therefore in consideration of the promises aforesaid and the at the

request of the licensee we, ________________________________________

do, hereby irrevocably and unconditionally undertake to pay to you, the

Authority on demand and without demur or protest and without reference to

the Licensee, any sums of money at any time or from time to time demanded

by the Authority on account of the Licence Fee and Royalty and other

charges due from the Licensee (inclusive of any costs or expenses and

interest) and or by way of losses and damages caused or that would be

caused to the Authority by reason of any breach by the Licensee of any of

the terms or conditions of the said Licence Agreement : PROVIDED that

our liability under this Guarantee shall be limited to a sum of (Rupees……





144

6. This Guarantee shall be valid till ________________ and you have the right

to encash this Guarantee upto _________________ from the said date.

NOTWITHSTANDING anything contained herein:

I. Our liability under this Guarantee shall be limited to a sum of

_________________ during the currency of the licensees upto 5

years, 6 months.

II. This bank guarantee shall be valid upto ____________ and you have

the right to enchash this guarantee upto 120 days from the said date.

III. We are liable to pay the guarantee amount or any part thereof under

this bank guarantee amount or any part thereof under this bank

guarantee only and if you serve upon as a written claim or demand on

or before _____________.

For Bank name

Dated:

Place:

Witnesses:



145

ANNEXURE - XVII

DELEGATION OF POWER

3. POWERS RELATING TO COMMERCIAL ACTIVITIES

In accordance with such rules, procedure and laid down policies as perCommercial Manual, subject to changes from time to time, the authorities specifiedbelow are authorised to exercise powers relating to commercial activities:

3.1 ALLOTMENT OF LAND ON LEASE* / LICENCE #

AUTHORITY LIMITS OF POWERSAAI Board Full powers subject to the provisions of

the Airports Authority of India Act,1994 and the recommendations of theCommercial Advisory Board.

3.2* ALLOTMENT OF HANGAR/RENEWAL THEREOF

AUTHORITY LIMITS OF POWERSChairperson Full powers on the recommendations of

the Commercial Advisory Board.

Member (Incharge) Full powers upto 3 years in consultationwith Member (Ops.)

Executive Director (Comml.) a) Full powers for short term allotmentupto one year on recommendationsof RED / Airport Director(International Airports)

b) Renewal for a maximum period of one year.



146

3.3* ALLOTMENT OF VACANT BUILT UP SPACE, PAVED SURFACE ORLAND IN OPERATIONAL AREA TO AIRLINES FOR LINEMAINTENANCE/ENGINEERING FACILITY, PLACEMENT OF PORTACABINS/PARKING OF EQUIPMENTS/DOLLIES AND TROLLIES ONLICENCE AND RENEWAL THEREOF. #

AUTHORITY LIMITS OF POWERSChairperson Full powers

Member (Incharge) Full powers

Regional Executive Directors(REDs)/Airport Directors(International Airports)

Full powers subject to a maximumperiod of Three (3) years at a time on allnecessary clearances as per the

established norms.

Airport Directors (DomesticAirports)/DGMs/AGMs In-

charge/Sr. Managers In-charge atfield stations.

Full powers subject to a maximumperiod of Three (3) years at a time.

# Licence is a permission for a fixed period to carry out a business in AAI’s premises subject to agreed terms & conditions on payment of

licence fee. It does not create any right to the immovable property.

* Lease is a temporary transfer of certain rights in the immovable property which permits an interest in the demised premises on payment of lease rentals and subject to agreed terms & conditions. As per prevailing commercial practice, licence is given for a short period from 1 year to 5 years generally whereas the lease is given for a longer period as permitted under the Statutes.

3.4 EXCHANGE/TRANSFER/ALLOTMENT OF SURRENDERERED LAND

AUTHORITY LIMITS OF POWERSAAI Board Full powers subject to the provisions of

the Airports Authority of India Act,1994.



147

3.5* POWERS FOR LICENCING OF TR STALLS, DUTY FREE SHOPS,DISPLAY HOARDINGS, ALLOTMENT OF FLOOR SPACE IN THETERMINAL BUILDING, CHECK-IN COUNTERS, CONTRACTS FORCAR PARKING SPACE, AIRPORT ADMISSION TICKETING ANDFOR ANY SUCH REVENUE EARNING CONTRACTS AT THEAIRPORT.

AUTHORITY LIMITS OF POWERS(Rs. in lakhs/per annum/per contract)

Cha i rpe r son Fu l l pow er s on t her e c o m m e n d a t i o n s o f t h eCom merc i a l Adv i so ry Boa rd .

Mem ber ( Incharge) Pow ers up t o Rs . 200 .00REDs/Ai rpor t Di rec t ors

o f m e t r o A i r po r t sPow ers up t o Rs . 100 .00 @

Ai rpo r t D ir ec t o r s o f o t h e r I n t e r n a t i o n al

A i rpo r t s

Pow ers up t o Rs . 30 .00 @

Airpor t Di rec t ors / In -cha rge o f Dom es t i cAi rpor t s /Opera t ing

S ta t i ons

Pow ers up t o Rs . 05 .00 @

@ on the r ecommenda t ions o f Reg iona l Commerc ia l Advisory Com m it t ee /LCAC as the c ase may be .

Remarks :

1. Renewal of the above contracts may be approved by the same approvingauthority as mentioned above, if such renewal clause is included in theoriginal agreement and subject to the period, terms and conditions as in theoriginal agreement.



148

2 . The h ighes t annua l va lue quo t ed fo r any pa r t i c u l a r yea r d u r i ng t h e t e n u r e o f t h e c o n t r a c t a s p e r N I T s ho u l d b econs ide red fo r app rova l by t he Compe ten t Au tho r i t yunde r t he De lega t i on o f Power s fo r award o f t hec o n t r a c t .

3.6 EXTENSION ON ADHOC BASIS IN CASE OF NON-FINALISATIONOF REGULAR CONTRACTS

Such ca se s a r e t o be app roved by t he Au tho r i t yc o m p e t e n t t o a p p r o ve t h e o r i g i n a l t e n d e r fo r e x t e n s io nup to t h r ee (3 ) mon t hs . How eve r, Cha i rman has fu l lp o w e r s .

3.6.1 STOP GAP ARRANGEMENTS FOR CONTINGENCYSERVICES

RED/APDs of Met ro Ai rpor t s a re to approve s top gapa r r a n g e m e n t f o r t h e c o n t i n g e n c y s e r v i c e s l i k er e s t au ran t i n s ide t he t e rmina l bu i l d ings fo r a pe r iodu p t o 6 m o n t h s o n l i m i t e d t e n d e r b a s i s o r n e g o t i a t e dt e r m s d e p e nd i n g u po n c i r c u m s t a n c e s .

3.7 PHOTOGRAPHY / FILM SHOOTING

AUTHORITY LIMITS OF POWERSREDs/Airport Directors(International Airports)Airport Directors (DomesticAirports)DGMs/AGMs in-charge of stationsSr. Managers in-charge at fieldstations.

Full powers subject to procedures issuedby Headquarters at the rate fixed fromtime to time.





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Note:

I. ‘Revenue Earning Contracts’ include Shopping facility. Duty Free Shops, Hotels, Restaurants, Snack bars, Car Rentals, Banks, Currency-exchangecounters, Hotel reservations, Telecommunication, Business Centresincluding conference rooms, Secretarial Service, Photo Service, MedicalServices, Nursery Rooms, CCTV, Counters for Travel Agents/Hotels etc.,

Advertising, Lockers, Left Luggage facility, Car Parking, Service Station,Ground handling, In-flight Catering, Public Transports, Airport AdmissionTickets, Agricultural Exploitation and other Commercial activities.

II. The relevant agreements can be executed as per the provisions under Chapter IV ‘Powers relating to Law Department’.

3.9* INSURANCE OF TERMINAL BUILDINGS, THIRD PARTY LIABILITY

INSURANCE, INSURANCE OF ASSETS AT AIRPORTS ETC.


Member (Incharge) Full powersED (Commercial) Powers upto Rs.20 lakhs premium p.a.

per policy.REDs/Airport Directors

(International Airports)

Insurance on petty assets or assets not

falling under the awards made byHeadquarters upto Rs.50,000 premiump.a. per policy.

Note:

1. The third party insurance, insurance of terminal buildings and insurance onannual basis will be undertaken by Headquarters with details obtained from

Airport/Units.

2. Powers are to be exercised against approved budget provisions and with financial concurrence, subject to policy decision of the Authority about itemsto be covered, value to be insured etc.



151

3.10* ENGAGEMENT OF CONSULTANTS IN CONNECTION WITH ANY

COMMERCIAL MATTERS/LAND MATTERS


Member (Incharge) Powers upto Rs.10 lakhs in each case.

ED (Commercial) Powers upto Rs.1 lakh in each case.

3.11* CREDIT FACILITY FOR(A) VIP FLIGHTS INCLUDING FOREIGN VIPS & (B) OTHERS

AGAINST DEPOSIT

AUTHORITY LIMITS OF POWERSREDs/Airport Directors (IAD) Full powers subject to guidelines/credit

policy of AAI

3.12 WAIVER/EXEMPTION OF AIRPORT CHARGES ON

HUMANITARIAN GROUNDS OR EMERGENCY NEEDS

AUTHORITY LIMITS OF POWERSChairperson Full powers subject to Government

approval

3.13* REFUND OF EMD (COMMERCIAL TRANSACTIONS)

Tender opening officer shall refund/release the EMD as per the proceduredescribe in para 5.22. However, the EMD of 3 highest bidders shall beretained, after opening of tenders.

Note : For Security Deposit the terms & conditions of the contract will apply.



152

3.14* APPOINTMENT OF ARBITRATOR


Member (Incharge) Full powers

ED (Commercial) Powers in respect of contracts approvedby him & below level officers.

3.15* ACCEPTANCE OF ARBITRATION AWARD


Member (Incharge) Powers upto Rs.50 lakhs in each case.

ED (Commercial) Powers upto Rs.10 lakhs in each case.



153

ANNEXURE – XVIII

______________ BANK

H.O.________________

___________ BRANCH

To Date :

--------------------------------

--------------------------------

--------------------------------

Subject: Solvency Certificate

M/s _____________________

This is to certify that in our opinion and to the best of our knowledge andinformation available on the records of the Bank as on ________, M/s

_____________ a firm/Private Ltd. Co., carrying on business at __________ withShri _________________ as Proprietor/Partners/Directors ______________ iscapable of undertaking contract works to the extent of Rs. ________ (Rupees_________________ ).



154

This certificate is issued without any guarantee or responsibility or commitment onthe part of the Bank or any of its Officers/employees.

For _________ BANK__________BRANCH

MANAGER/SENIOR MANAGER

* Here give the name of the person to whom the Certificate is to be addressed.** Here furnish the name of our client.



155

ANNEXURE – XIX

No.98/ORD/1Government of India

Central Vigilance Commission

Satarkta Bhavan, Block ‘A’GPO Complex, I.N.A.

New Delhi – 110023Dated 24 th August, 2000

To

i. The secretaries of All Ministries/Departments of Government of Indiaii. The Chief Secretaries to All Union Territoriesiii. The Comptroller & Auditor General of Indiaiv. The Chairman, Union Public Service Commissionv. The Chief Executive of All PSEs/Public Sector Banks/Insurance

Companies/Autonomous Organizations/Societies.vi. The Chief Vigilance Officers in the Ministries/Departments/PSEs

Public Sector Banks/Insurance Companies/AutonomousOrganizations/Societies

vii. President’s Secretariat/Vice-President’s Secretariat/Lok SabhaSecretariat Rajya Sabha Secretariat/PMO

Subject: Improving Vigilance Administration - Tenders

Sir,

Please refer to the instructions issued by Commission vide itscommunication No.8(1)(h)/98(1) dated 18.11.98 banning post tendernegotiations except with L-1.

2. The Commission has been getting a number of queries on how tohandle the matter if the quantity to be ordered is more than L-1 can



156

supply or about placement of orders on Public Sector Undertakings. It isrequested that such matters may be dealt with in accordance with theclarification issued by the commission vide its letter of even numberdated 15.3.99 (copy enclosed).

3. Some of the organizations have sought clarification as to whetherthey can consider the L-2 offer or negotiate with that firm if L-1withdraws his offer before the work order is placed, or before the supplyor execution of work order takes place. In this regard, it is clarified thatsuch a situation may be avoided if a two-bid system is followed (techno-commercial) so that proper assessment of the offers is made before theaward of wok order. Therefore, if L-1 party backs out, there should bere-tendering in a transparent and fair manner. The authority may in such

a situation call for limited or short notice tender if so justified in theinterest of work and take a decision on the basis of lowest tender.

4. The Commission has also been getting references for its advice onthe procedures being followed in individual cases of tenders. TheCommission would nor involve itself in the decision making process of individual Organization. It, however, would expects the Organizationsto implement its instructions dated 18.11.98, in its spirit and to ensure

that the decisions of administrative authorities are transparent.Yours faithfully

-Sd-

(K.L. Ahuja)Officer on special duty



157

ANNEXURE – XX

F.No.153/191/2002-TPLGovernment of India

Ministry of Finance & Company AffairsDepartment of Revenue

Central Board of Direct Taxes(TPL Division)

------

Room No.147B-II, North Block New Delhi, Dated 13 th February, 2003

ToAll Chief Commissioners of Income-taxAll Directors General of Income-tax

Subject: Abolition of the scheme of obtaining Income Tax ClearanceCertificate (ITCC) applicable to persons leaving India andthose obtaining commercial contracts

The undersigned is directed to bring to your notice that it has beendecided with effect from 1 st January, 2003:-

F. there shall be no requirement of furnishing Income TaxClearance Certificate by the persons before leaving India;and

G. no Income Tax Clearance Certificate shall be required to befurnished by any person while filling a tender for the purposeof obtaining commercial contracts, etc.

3. Accordingly, henceforth, no person leaving India by land, sea orair will be required to obtain a tax clearance certificate and furnish the



same to the airlines, etc. except in cases of persons concerning whomthe Income-tax Authorities specifically notify the immigration / customs authorities asking that such persons should not be allowed toleave India without obtaining Income Tax Clearance Certificate.

4. Similarly, contractors shall not be required to get Income TaxClearance Certificate from the Income-tax Department as there will beno need to furnish such certificate while submitting tenders toGovernment Departments.

5. It is requested that the above decisions may be brought to thenotice of all concerned within your jurisdiction.

-Sd-

(DEEPIKA MITTAL)Under Secretary (TPL-III)

Tel : 2309 2742