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EOI SCHEDULE

Establishment of Custom Hiring Centres

2016-17

Last date for submission : 20 -02-2017 up to 11:00 AM

Date of opening of technical Bids: 20-02-2017 at 12:00 PM

ANDHRA PRADESH STATE AGRO INDUSTRIES DEVELOPMENT CORPORATION LIMITED

No.504, 5th

Floor, Hermitage Office Complex, Hill Fort Road, HYDERABAD - 500 004

Phone NO:04023391331, 23314246, 23317225, Fax: 23394234

Email: apagros@ap.nic.in, web site: www.apagros.org

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No.AGROS/FMD/CHC/ 2016-17 Date :28-01-2017

EOI NOTICE INVITING SEALED QUOTATIONS

Sealed Quotations are invited from reputed manufacturers, PACS, NGO’s & FPOs for the item

No(1) and from reputed Printers for the item No.(2):

SI.

No

Description of Item

Cost of

EOI

schedule

Sale of EOI

Schedules

From – to

Last date

for

submission

Date of

opening

of

Technical

Quotations

1

Notice for EOI (Expression of Interest) for

Establishing Custom Hiring Centres of Farm

Equipment/Machinery

Proposals are sought from interested

parties in the following two categories:

Category 1: Manufacturers of farm equipment

who wish to setup minimum specified number

of Custom Hiring Centres of Farm

Equipments/Machinery either on ownership

model or franchise model.

Category 2: Successful, profit running Primary

Agriculture Cooperative Societies (PACS),

qualified NGO’s and experienced Farmer

Producer organizations (FPOs) who wish to

setup minimum specified number of Custom

Hiring Centres of Farm Equipment/Machinery.

All interested parties may submit their

proposal till 20th February, 2017 by 11.00 AM,

guidelines for submitting proposal for Custom

Hiring Centre can be perused at

www.apagros.org .

Interested parties may participate in the

Pre-Bid meeting at 11.00 AM on 4th February,

2017 at our Regd.Office of the Corporation

Hyderabad.

Rs.10,000

30-01-2017 to

20 -02-2017

up to 11.00

A.M.

20-02-2017

up to

11.00 A.M.

20-02-2017

at 12.00 P.M.

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SHORT EOI NOTICE: PRINTING AND PROFORMA

CERTIFICATE OF PASS BOOKS TO RYTHU SADHIKARA

SAMSTHA DEPARTMENT OF AGRICULTURE , GUNTUR,

A.P.

Rs.5,000

30-01-2017

to

06-02-2017 up

to 12:00 P.M.

06-02-2017

up to

12:00 P.M.

06-02-2017

at 2.00 P.M.

The EOI Schedules and terms and conditions can be downloaded from our website www.apagros.org .

Sd/-

Hyderabad Vice Chairman and

Managing Director

A.P.S. AGRO INDUSTRIES DEVELOPMENT CORPORATION LTD.

Registered Office: 504, Hermitage Office Complex, Hill Fort Road, Hyderabad – 500004.

': 23391331, 23314246, 23317225, Fax: 040 – 23394234

website: www.apagros.org. E.Mail: apagros@ap.nic.in.

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A.P.S. AGRO INDUSTRIES DEVELOPMENT CORPORATION LTD. Registered Office: 504, Hermitage Office Complex, Hill Fort Road, Hyderabad – 500 004.

℡: 23391331, 23314246, 23317225, Fax: 040 – 23394234

website: www.apagros.org. E.Mail: apagros@ap.nic.in.

EOI for CHC’S

Sub: Applications for Short Term Expression of Interest for the purpose of establishment of

Custom Hire Service Centres through Farm machinery Manufacturers/service oriented

PACS/NGO’s/FPO’s.

The Department of Agriculture proposes to establish Custom Hire Service Centres at

Mandal level in the State during the year 2016-17/2017-18. The details & scope of the

programme and terms of reference are annexed. The short listed Farm machinery

Manufacturers, qualified NGO’s, PACS, FPOS & others hereinafter called as Applicant

should submit the duly filled in application form as per the format annexed.

The Applicant who is interested in participating in the expression of interest regarding

the programme is requested to submit the following information:

1. Profile of the Applicant.

2. Annual report, Balance Sheet for the past three years (2013-14, 2014-15 & 2015-16).

3. Brief write up in about 100 words, including monetary value with details of relevant

assignments completed in the past three years.

4. Complete details of staff with the Applicant.

The interested Applicant may download information on APAGROS website. For

further information contact, Deputy Manager(AE), AP State Agro Industries Development

Corporation Ltd, 504, Hermitage office complex, Hill Fort Road, Hyderabad-500004. Mobile

number: 9948076842

Note: The Applicant should submit a security deposit of Rs. 1.00 lakh per centre.

I. Background I(a). Andhra Pradesh State is typically an agrarian State has about 100.00 lakh ha

of geographical area has about 80.96 lakh ha of net sown area and has about 65.39 lakh

ha operational holdings & 34.35 lakh ha are small and marginal holdings.

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I(b). Diversified agriculture and horticulture crops grown in varied Agro-climatic

regions of the state. The challenge is to improve yields, in spite of vagaries of nature

besides other problems such as decrease in the availability of agriculture labourers,

migration of younger educated people from rural area to cities etc. Mechanisation of farm

activities is the need of hour to meet timliness of various operations and productivity.

Though subsidy is being provided for farm machinery, due to prohibitive initial huge

investment on various farm machinery, major portion of small and marginal farmers may

not come forward to own them. Hence, establishment of Custom Hiring Service Centre

(CHSC) is a boon especially for the small and marginal farmers in particular and all

categories of farmers in general.

I(c). The Applicant selected for each District level will have to establish custom

hire service centres at Mandal level in the selected District. One Applicant can apply for

more than one District. To participate in the process minimum selection unit is District.

Priority will be given to the applicants whose firm had experience in manufacturing crop

specific equipment. For each district 10% allocation will be given to

NGO’s/PACS/FPO’s provided they must possess appropriate credentials.

I(d). Government assistance for each centre:

The Department of Agriculture proposes to establish 200 CHSCs (Rs.50.00 lakhs to one

crore per centre) during the year 2016-17/20171-8. Government assistance is 50% on

three year annuity basis.

II. Selection Criteria Applicant

II(a). Agriculture scenario has witnessed a great change since last two decade. With

the enormous development of urban areas and migration of rural labour class to the urban

areas for better employment opportunities has resulted in scarcity of labour for agricultural

operations. In this context, mechanisation in agriculture is the only alternative to solve the

labour problem being faced by our farming community today. Mechanisation not only helps

in solving the problem of labour, but also enables to carry out agricultural activities in right

time. The major constraint in mechanisation is that small and marginal farmers cannot afford

to purchase costly machinery and equipments, even large farmers/farmer groups unable to

maintain and operate need based farm machines as per the prevailing local cropping practices

except few equipment like combines,large capacity multicrop threshers. As a result the whole

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purpose of subsidised farmer groups centric custom hiring practice being defeated. Custom

Hire Service Centres (CHSCs) enable to overcome these constraints as they provide services

of machinery on hire basis to small and marginal farmers in right time. With this background

it is proposed to select reputed functional Farm machineries Manufacturer.

II(b). The criteria for selection of Applicants,

1. Applicant should be registered company dealing in manufacturing agricultural

machinery /Profitable PACS/Service oriented well established NGO’s/Farmer

producer organizations.

2. A minimum of 25 workers should be working and should be actively functioning for

the past three years.

3. Applicant should have experience in execution of Government works (attach

necessary documents).

4. On selection, Applicant should function efficiently as per the agreement.

5. Applicant should have minimum 5 persons who have knowledge about Agriculture /

Agri-Business/ Farm machinery.

6. A) Applicant who should be a manufacturer of farm equipments with average annual

turnover of Rs. 100.00 crore for the last three years and others should produce their

last three years audit reports and necessary registration documents.

B) Applicant should be either a manufacturer or their holding company or joint

venture of manufacturer, provided that either partner of the entity has experience of at

least 5 year experience related to farm equipments. The average annual turnover of

both the companies put together in each case shall be Rs. 100.00 crore for the last

three years.

7. Any member of the Applicant team should not be elected/ nominated person of any

political party.

8. The selected Applicant should mandatorily engage minimum of 5 members to run

each CHSC which including technical staff, mechanic and driver. Technical staff in

the CHSC should be competent enough / be trained to guide the farmer.

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9. Applicants against whom criminal case registered in police station/ pending in any

court is not eligible to participate.

10. Applicant should not have been blacklisted in any State and they should submit an

affidavit to that aspect.

11. The work assigned under this Expression of Interest to the manufacturers of farm

equipment who wish to set up minimum no. of Custom Hiring Centers on ownership

model shall establish the same on their own or through franchisee model. The sole

responsibility of running the center lies with the applicant only.

12. The applicants shall provide their franchisee details after receipt of work order. The

applicant further shall allocate 10% franchisee to local PACS / NGO’s / FPO’s.

13. The Applicant should function in co-ordination with the Department of agriculture.

14. The functioning of the CHC throughout the cropping season is mandatory.

15. Applicant should make provision for insuring all the farm machinery provided against

natural disaster/robbery/insurance for machinery operator or driver etc.

16. E.M.D. at the rate of Rs. 1.00 lakh per CHSC in the form of Bank guarantee in the

name of APSAIDC Ltd should be submitted for a period of five years. After the

selection of Applicant, E.M.D. will be refunded to the unsuccessful bidders

immediately. The EMD of the successful Applicant shall be retained by the

Department/AGROS as security deposit and will be refunded after the validity period

of the EOI after obtaining Successful work Certificate from all the District Joint

Directors of Agriculture or shall be forfeited in the event of violation of terms and

conditions of Expression of Interest.

III. CONDITIONS

1) For the purpose of selection of Applicant each District will be treated as a Unit and

they need to apply for all centers proposed in the District.

2) The selected Applicant should enter into an agreement with the Department. This

agreement is valid for a period of six years from the date of signing the agreement and

should compulsorily run for six years. The agreement may be extended further on

mutually agreed terms subject to the satisfactory performance of the CHSC. The worn

out or non functional equipment will be disposed off after its life time usage and the

money raised from such disposal will be utilized for purchase of new equipment.

3) For all the financial transactions of the CHSC, the Applicant, should submit the

Annual Utilization Certificate.

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4) Preference should be given to Small and Marginal farmers during hiring out.

5) The operational area of each CHC shall be intimated with initial setup report of the

CHC and cannot be changed without the prior permission from the department.

6) Farm implements upto a worth Rs. 50.00 lakh to 1-00 crore shall be kept in each

CHSC based on the local needs.

7) Running Expenditure like salary of the personnel in charge of CHSC, rent, fuel

charges, repairs and maintenance charges etc. shall be borne by the Applicant

8) APAGROS shall monitor the functioning of CHC’s at each district.

9) Monthly income statement shall be furnished to APAGROS.

10) If more than one Applicant are found to be eligible in a given district, then the

Applicant ready to invest higher amount for establishment of CHSC, their previous

experience in the field will be given preference.

IV. Government assistance for each centre

1) The Department of Agriculture proposes to establish 200 CHSCs (Upto Rs.50.00

lakhs to one crore per each center) during the year 2016-17/2017-18. Government

will provide 50% assistance.

2) In the subsequent phase preference will be given to the successfully performing

Applicant for establishing additional CHSCs subject to the same terms and conditions.

3) Any disputes arising during the implementation of the project will be resolved and

settled at the level of Director of Agriculture only.

4) All selected Applicants should submit Audited statement every year.

5) All eligible Applicants will be provided an opportunity to make a presentation on the

organization strength and vision to establish CHSC in sustainable manner. (duration -

10 minutes)

6) If the selected Applicant is unable to perform as per the terms and conditions of the

Expression of Interest, preference will be given to other selected Applicants who wish

to come forward to set up CHSC as per the terms and conditions of the Expression of

Interest.

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7) The Applicant should not have been blacklisted / terminated / withdrawn / dropped

out earlier for any activity whatsoever from the department of agriculture or any other

allied sector departments.

V. Fixing of the Hiring Charges

The hiring and service charges for tractor and other equipments shall be fixed by the

Districts Implementation Committee headed by the District Collector. The committee will

comprise of the District Joint Director of Agriculture, Two Progressive Farmer (awardees),

leading farm machinery manufacturer in the District, ADA (FM) and CHSC representative,

University of Agriculture representative and DM, APAGROS as members. The committee

shall take into account the fuel prices, interest payable to bank on loan and return on

investment, salary of drivers, repairs, both preventive and breakdown, distance from Service

Centre to fields, wear and tear, life of the machinery and other incidental expenses including

establishment expenses while determining the hiring charges. Separate hiring charges should

be fixed for Small & Marginal Farmers as a category and other category farmers, wherein

hiring charges for Small and Marginal category farmers will be lower than the other category

farmers. Rates should be reasonable and realistic and should be in reference to market rates as

obtained from time to time.

VI. DISBURSEMENT OF GOVERNMENT ASSISTANCE

1) The successful Applicant has to procure the listed items of the equipment as per the

District implementation committee. The procurement is based on approved prices

finalized by the technical committee at APAGROS. One third of the payment will be

released after opening of the center and procurement of listed items which shall be

certified by the District committee. Second installment of payment in the 1st quarter of

next financial year and final payment in the 1st quarter of 3

rd financial year.

2) The successful Applicant will have to establish Custom hiring centre within one

month from the date of issue of work order. The departmental officers will monitor

the progress, after physical verification and on issue of satishfactory certificate the

subsidy will be released to the bank.

3) Government share would be released to APAGROS account to be further transferred

to the equipment/implement suppliers account as soon as order is placed with

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different suppliers and requisite verification is done by department/APAGROS

officials.

VII. TECHNOLOGY SUPPORT

The short listed applicant is expected to create appropriate facility for manual and

automatic order booking, real time order status tracking, real time tractor/combine/high

capacity multicrop thresher etc. location tracking, break down and delay management, driver

management, implement management either by phone to a toll free call number or through a

mobile app or through a website.

The applicant must submit tie up with IT service providers or they can opt AP

AGROS empanelled IT service providers in order to provide above facilities.

VIII. PENALTIES FOR VIOLATIONS AND NON PERFORMANCE

If the any of the selected applicant unable to run CHSC satishfactorily (failure or

closing of the centre), the concerned Applicant should refund/ remit full Government share

along with interest amount as per prevailing bank rate. However force majeure will be

considered. Penalties also include forfeiting of bank guarantee, black listing and legal action.

IX. FINAL DECISION MAKING AUTHORITY:

The decision of the Tender Accepting Authority (VC&MD, APAGROS) shall be final in

considering or rejecting the bids.

The VC&MD, APAGROS reserves the right to accept or reject the contract even after

opening of Technical Bid without assigning any reasons whatsoever.

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ANNEXURE-I

Objectives of the Custom Hire Service Centres (CHSCs)

Department of Agriculture provides subsidy for Farm Machinery under

NFSM/ ISOPOM / R.K.V.Y. and other state sector schemes. Due to prohibitive cost

of farm machinery, small and marginal farmers are unable to own them. Thus,

establishment of Custom Hire and Service Centres and providing farm machinery

required for various farm activities right from land preparation to post harvest would

enable small and marginal farmers to mechanise farm activities by way of hiring the

farm machinery on reasonable hire charges. The farm activity wise uses of different

farm machinery are as follows:

Sl

no

Farm Activity Uses

1 Implements for Land Preparation Land preparation for uniform sowing

besides conserving and management

of natural resources such as water and

soil, biomass etc.

2 Sowing /Planting Implements Savings on input requirement beside

uniformity in depth of sowing,seed

placement, input application rates.

3 Implements for Inter cultivation Weed control

4 Plant Protection equipments Management of pest and diseases

5 Harvesting and Threshing Better quality and quantity produce

6 Post Harvesting and Agro

processing

The specific objectives are:

1. To address the constraints in land preparation and development, by providing

Farm machinery and equipments on Custom Hire Service basis.

2. To encourage natural resources management and to harness the residual

moisture of Kharif season for Rabi Pulses and Oilseeds.

3. To enhance the production and productivity of the crops on sustainable basis.

4. To provide services of High Tech Farm Machinery to small and marginal

farmers.

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5. The Department of Agriculture proposes to establish 200 Custom Hire Service

Centres at Mandal level in all the districts of the Andhra Pradesh.

List of Farm Machinery that are proposed to be provided in the Custom Hire Service

Centres are given below:

S. No. Item

A Land Development , Tillage and Seedbed preparation

Equipments

1.

Tractor and its accessories/power tillers

2. Rotavator

3. Laser Guided Land Leveller

B. Sowing and Planting Equipments

4. Paddy transplanter

5. Seed cum Fertiliser Drill

6. Zero till seed drill

7.

Raised Tray Nursery Preparation Machine with

Trays(manual & automatic)

8. Raised bed Planter/ Ridge Furrow Planter

C. Inter Cultivation Equipments 9. Power weeders

D. 21. Tractor / Power operated Hi-tech P.P. equipments

E. Harvesting & Threshing Equipments

22. Multi Crop Thresher

23. Groundnut Digger

24. Groundnut Pod Stripper/ Thresher

25. Harvester/ Reaper

26. Combined Harvester

27. Straw Baler

Note: 1. The selection of Farm Machinery for the purpose of establishment of

Custom Hire Service Centres will be based on the local needs and suitability to

soil condition.

The district level committee shall select the equipment on the following ratio:

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a) Land development and seed bed preparation equipment 30%

b) Crop sowing/interculture/plant protection equipment 20%

c) Crop harvesting equipment /post harvesting 40%

d) Crop residue management equipment 10%

2. The above mentioned list is only indicative and not exhaustive. Any

additional implements required other than the listed above, can be finalised in

the Committee headed by District Collector.

3. The Applicant can choose his firm’s equipment as per the local conditions.

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ANNEXURE-II

APPLICATION FORM

From:

………………………………….

…………………………………..

…………………………………..

…………………………………..

Date:

To,

The VC&MD, APAGROS

Dear Sir,

Sub: Expression of Interest is invited by APAGROS for the Department of

Agriculture during the year 2016-17/2017-18

Ref: Your advertisement in News paper and EOI notice

This is in connection with the above mentioned subject and reference. Having

understood the procedure for Expression of Interest invited by APAGROS for

establishment of ____________ Custom Hire Service Centers in the State during the

year 2016-17/2017-18 and scope of work of the Charitable Trusts (Registered under

Section 25 of Companies Act, 1956) /Organizations/Non Government Organizations

(NGO)/Registered Farmers Producers Organizations (FPOs)/ Farm machineries

Manufacturer, we would like to express our willingness for establishment of Custom

Hire Service Centers in the State during the year 2016-17/2017-18.

Kindly find enclosed here with our application and details in the prescribed

format for further needful action.

Thanking you,

Yours faithfully

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ANNEXURE-III

APPLICATION FORM FOR THE SELECTION OF APPLICANT FOR

ESTABLISHMENT OF CUSTOM HIRE SERVICE CENTRES

1 Name of the Charitable

Trusts (Registered under Section 25 of Companies Act,1956) /Organisations/ /Non Government Organisations (NGO)/ Registered Farmers Producers Organisations (FPOs)/ Farm machineries Manufacturer

2 Address

Registered Office

Tel. No.

Fax. No.

E-mail

3 NAME OF THE HEAD {In charge of the Charitable Trusts (Registered under Section 25 of Companies Act,1956) /Organisations/ Non Government Organisations (NGO)/ Registered Farmers Producers Organisations (FPOs)}/ Farm machineries Manufacturer

Tel.No.

Fax. No.

E-mail

4 Year of establishment of the Charitable Trusts (Registered under Section

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25 of Companies Act,1956)/Organisations/ Non Government Organisations (NGO)/Registered Farmers Producers Organisations (FPOs)/ Farm machineries Manufacturer

5 Year of commencement

6 Turn Over for the last three years

2013-14

2014-15

2015-16/2016-17

7 Professional tax Registration no.

8 Service tax registration no.

9 Permanent Income Tax A/c. No.

10 Name of the District/ Mandal applied for

11 Organizational profile : Enclose full details in separate page

12 Details of Bank Guarantee Date:

Name of the Bank:

Amount:

Full Name & address:

Designation/Status:

Signature

Official Seal with Address: __________

Place: Date: