BSNL Kerala EOI (Expression of Interest) for Franchisee ship of BSNL for the Sales Marketing and Distribution

EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Seal & Signature of the Bidder Page 1
BHARAT SANCHAR NIGAM LIMITED
O/o Chief General Manager
Kerala Telecom Circle
Expression of Interest
for
Franchisee ship of BSNL product and services for Sales and Distribution
in ………………………………….. SSA.
EOI No: GM (S&M)-CM/PV/KRL/1-113/EOI-2012/12-13/27 Dated: 20-5-2013
Signature of Bidder…………………………………………………………………………
Name of Bidder…………………………………………………………………………..
Name of the franchisee area for which EOI is being submitted …………………….
Code of the franchisee area for which EOI is being submitted …………………….
Last date of submission: 20th June 2013, 10AM
Date of opening of Bid: 20th June 2013 ,11 AM
Signature and Seal of issuing authority…………………………………………………
EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Seal & Signature of the Bidder Page 2
This document contains 35 pages including the cover page. Please check that all the pages are intact in the document.
CHECK LIST FOR BIDDERS / APPLICANTS.
1. The Bidder should ensure that all documents and papers submitted in this EOI are fully authenticated by the authorized signatory under his signature with official seal wherever applicable.
2. The following documents form part of the EOI and should be submitted with EOI:
S. No.
Documents to be submitted
Documents submitted
Y / N
Page No. at which Document Attached
1
All pages of this EOI document, duly signed by the authorized signatory in a token of acceptance of all terms and conditions by the bidder. Any other document submitted by the bidder should also be signed by the authorized signatory.
2.
Duly filled application form for individuals/companies/firms (Section-C, Annexure-G, H&I).
3
If EOI document is downloaded from Internet, a DD of Rs 1050/- (including VAT @ 5%) as cost of the bid document from a Nationalized / Scheduled Bank should be attached.
4.
General Power of attorney in favour of the signatory signing the EOI documents. It is not required in case of proprietary/partnership firm if the proprietor/partnership himself signs the documents.
5.
Attested copy of Article and Memorandum of Association or partnership deed or proprietorship registration as the case may be.
6.
Attested copy of LST/CST/Service TAX Registration number, if applicable.
7.
Attested copy of PAN/GIR Number.
8.
Attested copy of current & valid clearance from Central and State Sates Tax authority if applicable.
9.
Bank guarantee towards EMD / Bid security issued from a nationalized / Schedule bank on non-judicial stamp paper of Rs.100/- (Format enclosed Annexure B) and valid for 180 days from the date of opening of EOI.
10(a)
Attested copy from CA of turn over details for the year 2011-12/2012-13 (Audited P&L Account) Turnover certificate item wise.
11(a)
11(b)
Certificates for experience in dealing with telecom or FMCG or Electronic/Electrical goods for last 2 years as on the date of opening of EOI with duly attested supporting documents.
List of retailers for verifying established retail chain.
12.
Proof of ownership/rent-deed/supportive documents (acceptance from the owner), showing the clear title to the office space. The office space is to be ensured within 15 days of LOI (Letter of Intent) for Franchisee ship.
13
Latest Income Tax clearance certificate
14.
Any other supporting documents as asked for or called for.
3. Every additional document submitted and every page of the EOI document shall be duly signed by the authorized signatory as a token of compliance and acceptance to all terms and conditions.
4. Separate EOI form for each area should be submitted, if bidder wants to apply for more than one Franchisee Area if eligible.
EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Seal & Signature of the Bidder Page 3
Bharat Sanchar Nigam Limited
O/o Chief General Manager,
Kerala Telecom Circle / District
Details of the Franchisee area for which the franchisee ship is applied
(To be filled by the applicant)
Name of the SSA
Name of the franchisee area
Code of franchisee area
Name and address of the firm
…………………………………………………… Phone No. (s) :
…………………………………………………… Office :
…………………………………………………… Residence :
…………………………………………………… Mobile :
Details of the EOI Document Cost and Ernest Money Deposit:
Particulars
Issuing Bank with branch name
Issuing date
Validity
Amount
(Rs.)
EOI Document cost
DD No……… ……………….
N/A
Rs.1050/-
EMD
(in the form of BG)
BG No. …….
………………
Valid upto …………
………..
Seal & Signature of Bidder …………………………………
EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Seal & Signature of the Bidder Page 4
TABLE OF CONTENTS
S. No.
Title
Page No.
1
EOI (Expression of Interest) for Franchisee ship of BSNL for the Sales Marketing and Distribution
1
2
Check list for bidders / applicants.
2
3
Details of the Franchisee area for which the franchisee ship is applied
3
Section A
4
NOTICE INVITING EOI (Expression of Interest) for BSNL Franchisee
5
5
Eligibility Requirement
5
Section B
Section 1: Roles and Responsibilities
6
A. Geographical area
7
7
B. Responsibilities of Franchisee
7
Section 2 : Franchisee Territories
8
A. Dimensioning of Franchisee Territories
9
Section 3: Selection process and criteria
9
A. Expression of Interest Route:
10
10
B. Terms & Conditions with EOI
11
11
C. Extension of Agreement
11
12
D. Requirements after EOI Approval
11
13
E. Selection criteria for franchisee ship
12
14
F. Scoring Guidelines for Selection Criteria
12
Section 4 : Target Setting & Performance Management
15
A. Target Setting
14
16
B. Performance Management
15
Section 5: Discounts & Commissions for Franchisee
17
A. Penalty
18
18
B. General Terms & Conditions
19
Section C
19
Detailed Terms and Conditions of EoI
20
20
ANNEXURE – B : Bank Guarantee Format EMD
22
21
ANNEXURE – C : Product List for FMCG Industry
23
22
ANNEXURE – D: The franchisee commission and discount
24
23
ANNEXURE – E: The sharing of Franchisee discount/commission among RDs, Retailers and DSA.
25
24
ANNEXURE – F : Format of the Performance Bank Guarantee
26
25
ANNEXURE – G : List of authorized representatives of franchisee
28
26
ANNEXURE – H Covering Letter for Submission of EoI
29
27
ANNEXURE – I : Particulars of the Applicant seeking Franchisee-ship
30
28
ANNEXURE – J: Declaration.
31
29
ANNEXURE – K : Primary Area (Location) for Franchisee ship applied for
32
30
ANNEXURE – L : Format of Certificate regarding close relatives working in BSNL
33
31
ANNEXURE – M : List of areas for which EOI is called for
34
32
ANNEXURE – N : Address to which the filled EOI is to be submitted.
35
EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
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Bharat Sanchar Nigam Limited
O/o Chief General Manager,
Kerala Telecom Circle
SECTION ‘A’
NOTICE INVITING EOI (Expression of Interest) for BSNL Franchiseeship
EOI NO: GM (S&M)-CM/PV/KRL/1-113/EOI-2012/12-13/27
Sealed EOI (location wise) are invited on behalf of CMD BSNL by CGM Kerala. Telecom Circle for selection of Franchisees for sale of BSNL services and products at various locations in following SSAs, from eligible and willing parties for various franchisee areas in different SDCAs of various SSA as mentioned in Annexure M.
Table –I
EMD
Cost of EoI Document
Last Date & Time for Bid submission
Date & Time of Bid opening
Name of SSA
Name of Franchisee area
Code No. of vacant Locations in SSA
Rs.1050/-
20-6-2013 , 10 AM
20-6-2013, 11 AM
Note- The sale of EOI document will be from 10.00 Hrs to 16.00 Hrs from 20-5-2013 to 19-6-2013 on all working days.
Eligibility Requirements for BSNL Franchisee ship for each franchisee territory
1. All proprietorship firm, partnership firms and company of Indian origin fulfilling following criteria are eligible to apply.
Turn over: Turnover is defined as sales proceed as per audited P&L account of the firm, submitted for last financial year. A copy of income tax return should also be submitted along with.
i. Rs.50 Lakhs for A class territory
ii. Rs.30 Lakhs for B class territory
iii. Rs.6 Lakhs for C class territory
Experience: Interested firms must be distributor of Telecom / FMCG / Electronics / Electrical products with established retail chain for :
i. 3 years for class A territory out of last 5 years
ii. 2 years for class B territory out of last 4 years
iii. 1 year for class C territory out of last 3 years
A detailed product list for FMCG industry is provided in Annexure-C. A wholesale or stockiest business experience in the above categories should not be considered as distribution experience. A copy of certificate from Telecom or FMCG or other should be attached. In case there is ambiguity in the interpretation of Annexure-C, the decision of Circle Head will be considered final.
Note: DSAs and RDs of BSNL are not allowed to participate. However they may participate in second or subsequent rounds of EoI wherever no bidder in first round of EoI. The experience of DSAs/ RDs will be called as telecom experience.
There were no bidders for Kavarathi Territory in Ernakulam SSA, in the previous EOI No:GM(S&M)-CM/PV/KRL/1-113/EOI-2012//12-13/15 dtd 20-12-2012. Hence the following categories of bidders can also participate in the EOI for Kavarathy Territory.
1. Direct Selling Agents (DSAs)
2. Rural Distributors (RDs)
3. Existing franchisees as per the restrictions mentioned in Section 2 Clause A (Refer P.no .9 of EOI)
EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
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Space: Interested party must ensure office space (carpet area) of size 250 sqft for BSNL franchisee ship within operational area of the territory. Space is to be ensured within 15 days of LOI for award of Franchisee ship.
2. Bid document will be available from the office of the respective SSA GM on any working day, on payment of Rs.1050 (non-refundable) in the form of cash/ crossed bank draft in favor of Accounts Officer (Cash), BSNL O/o GMT of respective SSA (for details please refer Annexure N). In case of cash payment the original cash receipt obtained should be enclosed with application.
3. EOI document may also be downloaded from BSNL site www.keralatelecom.com. and cost of document in the form of DD be deposited along with the bid.
4. Submission of EOI :– Separate sealed EOI should be submitted for each vacant location and each EOI should be super scribed with “CM-Franchisee-ship for ............ territory ............ SSA.” and filled EOI should be either dropped in drop box or send it through registered post to the address shown in Annexure – N.
5. Opening of EOI :– EOI shall be opened area wise as per schedule attached, in the office of the GMT of the respective SSA (for details please refer Annexure N) in the presence of bidders/ authorized representatives of the bidders who wish to be present.
6. Fee for EOI Document is neither transferable nor refundable.
EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
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SECTION-B
Section 1: Roles and Responsibilities
A. Geographic area
a. Definition of Geographical areas: All Franchisees should have well defined geographical area (to be defined by SSA and notified in the franchisee Agreement). This will be their primary area and the franchisee must fulfill all the requirements as per the policy in this primary area only.
b. Franchisee is not allowed to sell outside the Primary Area in any case (except in cases where the franchisee has been allowed to sell in a territory for a limited period through a look-after arrangement). Any violation is to be viewed seriously, will attract penalty as per clause and the agreement with such franchisee be discontinued and the franchisee may even be barred for further dealing with BSNL for a period of 2 years in case the violation so warrants.
B. Responsibilities of Franchisee
a. Selling of all BSNL Products and services assigned to them, directly or through Rural Distributors (RDs) or retailers.
b. Two tier structure for urban and three tier structure for rural areas by incorporating intermediate channel of RDs.
c. Generation of demand for services permitted by BSNL.
d. Appointment of Retailers
Franchisee must appoint sufficient numbers of retailers in the territory such that:
i. Each BTS area have atleast 8 retailers
ii. One retailer in urban commercial area at every 200m,
iii. One retailer in urban residential area at every 500m,
iv. Atleast one retailer in every Village
e. Rural Retailers will be appointed and served by RDs in 3 tier system.
f. Meeting and exceeding all targets set by SSA/Circle for the franchisee. Franchisee is responsible for meeting these targets through all channel entities working under him.
g. CAF collection, documentation (physical documentation as well as electronic documentation) and timely submission of documents to BSNL as per regulatory guidelines and BSNL instructions. Once the CAF has been deposited by the Franchisee under receipt to BSNL. The responsibility of documents submitted in support of customer identity & address will be on Franchisee for period of 90 days from date of deposition of CAF. BSNL official will check the documents within 90 days and if anything is found wrong with respect to DOT/TERM guidelines than the form should be rejected/corrected and a token penalty of Rs 200/- shall be imposed per wrong CAF on franchisee.
h. Verification of credentials of customers – Verification of PIA (photo, identity and address) of customer at the POS (Point of Sale) has to be done as per the various guidelines issued by DoT and BSNL from time to time. Franchisees will be responsible for the verifications done by all the channels i.e. Rural Distributors and retailers working within their network.
i. Operation of IT tools and systems provided by BSNL as specified from time to time, including hiring data entry operator if required.
j. Appointing required number of FoS (Feet-on-Street) exclusively for BSNL to service retailers as per the target set by SSA/Circle.
k. Assisting, cooperating and following instructions issued by the Franchisee Manager or any other BSNL employee appointed by BSNL and provide him/her required details as specified by BSNL.
l. Providing List/Details of FOS and retailers to BSNL.
m. All details and information (including but not limited to FoS details, secondary sales, etc.) as per BSNL format to BSNL officials as per frequency specified. Franchisee must provide secondary sales details and/or any other details as specified by BSNL from time to time in BSNL specified system e.g. Sancharsoft.
n. After sales services: Receiving, attending & rectifying complaints.
EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
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o. All forms of complaint handling on phone and walk-in-complaints (hardware related, billing, service, performance related etc.) will be handled directly by Franchisee. Franchisee shall redress all possible complaints on the spot. If required, help from BSNL call centers may be taken. Remaining complaints can be forwarded to designated BSNL official for further disposal.
Response time - 15 minutes
Rectification time - Same day if complaint is received up to 5 P.M. and next business day if complaint is received after 5 P.M.
p. Setup support infrastructure to service customers to meet the objective of serving customer in 2 hour or less and progressively in real time basis so that the customer is delighted.
q. Serving retailers and Rural Distributors at their doorsteps as per frequency specified by BSNL. Franchisee must ensure that BSNL products are available with rural distributors as well as retail networks in sufficient quantity on demand. Franchisee must ensure that no black-marketing or mal-treatment to customer is done through its network.
r. Receiving advertisement/ marketing material from BSNL, displaying them and distribution to Rural Distributors and retailers at their premises.
s. Promotion of BSNL brand(s) at Franchisee’s cost.
t. Arranging special promotional events as per BSNL guidelines at Franchisee’s cost, including events, camps and other outreach programs in rural areas
u. Timely submission of bills and claims to the nodal officer
v. Storage of SIM’s, data cards and other telecom stores.
w. Issue receipts: At the time of booking of any new connection franchisee shall issue a formal receipt to the customer.
x. Franchisee will be responsible for all the work done through its distribution network.
EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
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Section 2: Franchisee Territories
A. Dimensioning of Franchisee Territories:
a. Number of territories permissible to a franchisee in a circle is restricted to normally three (upto 2 territories through EoI / Migration + look after territory), however this could be four as stated in below para- d).
b. Maximum 50% of SSA territories or 3 whichever is less (upto 2 territories through EoI / Migration + look after) within the SSA
c. Number of territories permissible through first EoI to a franchisee in a circle is restricted to two territories. However he may participate in one more territory in second or subsequent rounds wherever there is no bidder in first round of EoI.
d. In case of existing franchisee if the number of migrated territories is three then he can’t participate in the EOI. If he has migrated in two territories then he can participate for one territory in the 2nd round of EoI.
e. An individual is only entitled to be a franchisee in his individual capacity or as a partner only in two territories and two territories alone in the Circle. The said individual can be permitted additionally in one territory under looking after arrangement. However he may participate in one more territory in second or subsequent rounds wherever there is no bidder in the first round of EOI. Any request by the existing franchisees for formation of new partnership or company with any other franchisee will be subject to the prior
approval of the CGMT, Kerala.
EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
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Section 3: Selection process and criteria
A. Expression of Interest Route:
a. In order to induct franchisees, BSNL shall invite Expression of Interest (EOI) from the willing parties. BSNL reserves the right to initiate the process for appointing franchisee even if there is a franchisee currently serving the territory or a part of the territory. Hereafter, any territory, for which EOI is invited, is referred to as ‘eligible territory’. Eligible territories could include:
 Vacant territories: Territories likely to be vacated in next three months or already vacated due to termination of franchisee, tenure completion of franchisee, or non-appointment of franchisee in the past. If a notice of termination (with a 30-day deadline for termination of franchisee) has been served to the franchisee, the territory can be considered as vacant territory.
 Redefined territory: BSNL reserves the right to redefine territories for realignment/ balancing of franchisee territories or in cases where existing franchisee has not met the performance criteria (defined in this policy) for a period of more than three months
b. EOIs are to be floated and finalized at Circle level. The approving authority will be the Head of circle.
c. Circles must invite EOI from willing parties for eligible territories.
d. To evaluate the bidders, a Selection committee comprising three members will be formed for each SSA. Each Selection committee will consist of
 SSA Head
 DGM (Finance)
 Sales Head of the SSA.
The entire evaluation process will be conducted at SSA itself. The interview of the short listed bidders will be held at Circle Office, before a committee comprising of
 GM (S&M)-CM
 SSA Head of respective SSA
 DGM (Finance), O/o CGMT
e. After the interview , the recommendation of the interview committee shall be approved by Circle Head. LoI to successful bidder shall be issued by Circle with the instruction to submit the requisite PBG at the concerned SSA within 15 days time frame for signing the agreement at SSA. The contract shall be awarded for a period of three years to the successful bidder(s) as per the terms and conditions stipulated in the EOI and in the sales & distribution policy document.
f. BSNL reserves the right to revise some sections of Sales & Distribution policy according to change in business environment. SSA shall notify all such changes to franchisees. Franchisee will be assumed to be in agreement with revised norms unless notified to BSNL in three week’s time. Any party who wishes to discontinue the agreement can do the same by providing a 60 days notice.
g. Interested party must deposit EMD of Rs. 2 lakh for class A territories, Rs. 1 lakh for class B territories and Rs. 25,000/- for class C territories along with EOI. The EMD will be in the form of Bank Guarantee in favour of BSNL and valid for a period of 180 days from the date of EOI opening.
h. BSNL reserves the right to reject any application of franchisee for any reason, without liability, the information provided by the franchisee/ gathered by BSNL shall become BSNL’ s property even if application is rejected and can be used by BSNL in any manner it deems fit.
i. The decision of BSNL will be final and binding.
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B. Terms & Conditions with EOI
a. Each franchisee will sign Franchisee Agreements at concerned SSA in the Circle. Franchisee must not work with any other telecom operator in the capacity of any role related to sales & distribution anywhere in India.
b. All Franchisees should have well defined geographical area (to be defined and notified by SSA/Circle). This will be their primary area and the franchisee must fulfill all the requirements as per the policy in this primary area.
c. The demarcated area for which they are appointed should be the primary area for the franchisee’s operation, and all contractual obligations and responsibilities as per franchisee policy should remain for this primary area only.
d. Periodic performance review must be done and in case of a franchisee not meeting the performance standards, action should be taken in accordance with ‘Performance Management System’ section of this policy.
e. Franchisee is not allowed to sell outside its primary area (except in cases where the franchisee has been allowed to sell in a territory for a limited period through a look-after arrangement). Any violation will be viewed seriously and action shall be initiated as per Penalty Clause of this document.
f. BSNL is free to appoint sufficient number of Rural Distributors in franchisee territory in rural areas. Rural Distributors will be either served by franchisee or BSNL and may not be exclusive to BSNL. Rural Distributor’s network will not only act as retail network but also help franchisee in serving rural retailers.
g. Franchisee can appoint any numbers of retailers within his jurisdiction for sale of BSNL products and services permitted to them. Franchisee should serve retailers as well as rural distributors at their premises.
h. Franchisee must ensure availability of BSNL products and services at more than 90% of retail points (multi-brand outlets) which sell telecom products within their primary area.
i. Existing customer service centers and all other channels including e-distributors, Rural Distributors, DSAs will also work as sales outlet for all type of services offered by BSNL. BSNL can directly appoint any other channel(s) to distribute and sale various telecom services and products within franchisee’s primary area.
j. Franchisee should ensure manning of office at least 12 hours per day (9:00 AM to 9:00 PM).
k. BSNL reserves the rights to seek/verify financial information from franchisee’s Bankers/credit providers and any another sources as to carry out other verifications.
C. Extension of Agreement
The extension for next two years (on year to year basis) can be granted, provided that the franchisee has been performing well i.e., achieving the prescribed bench-mark score during the last one year and achieving cut off score in type A parameters.
D. Requirements after EOI Approval
a. PBG (Performance Bank Guarantee) of:
 Rs.3 Lakhs for class A territory,
 Rs.2 Lakhs for class B territory and
 Rs.1 Lakhs for class C territory
to be submitted before signing of agreement within 15 days of LOI.
b. Franchisee shall deposit the aforesaid PBG of said amount as determined by BSNL from time to time. BSNL reserves the right to forfeit/adjust/apply the said EMD/PBG amount in full or part of any sums due from the franchisee to BSNL at any time. Franchisee shall continue to be liable for balance, if any, no interest will be paid on the deposit. BSNL reserves the right to increase the amount of PBG at any time in its sole discretion with respect to any/some/all franchisee.
c. After approval of EOI by Circle, the Agreement shall be signed by the SSA, PBG (Performance Bank Guarantee) shall also remain in concerned SSAs, Franchisees will be monitored and supported by SSA. Payments will be done from SSA (except in case of special schemes where Circle can also make the payment).
d. PBG will be treated as security deposit and no supply of material will be allowed against PBG.
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e. Material can be issued to franchisees against RTGS or Cheque on realization of Money in BSNL account or against Cash / Draft. The prefer mode for fund transfer for the franchisees to get material is RTGS.
f. Franchisee may open an account with RTGS/online transfer facilities in the bank in which BSNL’s account is in concerned SSA. Franchisee shall make payment to BSNL for material supply preferably by online transfer/RTGS mode. Any charges for online transfer or RTGS will be borne by franchisee.
g. Roll out Plan: 50% of the retailers should be active within 3 months from the date of signing of agreement and 100% retailers should be active within 6 months of signing of agreement.
E. Selection criteria for franchisee-ship
a. The maximum marks for eligible bidders in selection criteria for selection of franchisees will be as follows:
i
Experience of firm
20 marks
ii
Turnover
10 marks
iii
Place
15 marks
iv
Interview / Presentation
5 marks
b. Short listing will be done on the basis of point number (i) to (iii) and top three should be called for interview. Final selection will be done based on combined marks.
c. All parameters are as defined under the ‘Eligibility Requirements’ section. Place is ascertained as the place where firm/company is registered (service tax registration) or where it has operations (existing shop/office) for atleast last two years or more.
F. Scoring Guidelines for Selection Criteria:
a. Experience of firm (Total Marks: 20)
Experience
Telecom
FMCG Distribution
Electronic /Electrical
a.
Fulfillment of Minimum Criteria and up to 1 year in excess
14
12
8
b.
Greater than 1 years in excess but less than 2 years in excess
17
14
10
c
Greater than 2 years in excess
20
16
12
For telecom experience, in case of proprietor firm, the firm/proprietor should have experience of distribution of telecom services directly with any telecom operator. Retailers of Distributor/Dealer/Franchisee will not get any credit as telecom experience. The experience of DSA/ Rural Distributor of BSNL will be counted as telecom experience. In case of partnership firm, the Telecom/FMCG distribution/ other experience of firm (not of individual partner) as described above may only be considered in an appropriate manner by the Selection Committee.
b. Turnover (Total Marks = 10)
a.
Fulfillment of Minimum Criteria up to 20 percent in excess
3
b
Greater than 20 percent in excess but less than 50 percent in excess
6
c.
Greater than 50 percent in excess
10
c. Place (Total Marks – 15)
a.
Bidder belongs to same SDCA
15
b.
Bidder belongs to same SSA
8
c.
Bidder belongs to same Circle
2
Bidder should have registration of service tax or operational area within same SDCA/ SSA/ Circle as the case may be.
d. Interview / presentation before the selection committee
(Total Marks – 5)
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e. Selection Tie-Breaker: The franchisee with the highest marks out of 50 should be selected. In case of a tie, preference should be given in the order of higher score for ‘Place’, ‘Experience’ and lastly ‘Turnover’.
f. Selection in case when the first ranked bidder fails to turn up: In case the first ranked bidder is not in a position to accept the offer after due process of selection, then BSNL shall be at liberty to assign the franchisee ship to the bidder who ranked second and in case the second ranked bidder also not in a position to accept the offer, the bidder who secured third rank will be considered.
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Section 4: Target Setting and Performance Management
A. Target Setting:
Targets will be assigned by Circle to SSAs and thereafter SSA will assign franchisee-wise rolling target. Each SSA should set the rolling targets for CM products for next two calendar months on various parameters as defined below on or before the 25th of previous month. In case of holidays, it should be communicated on or before last working day before the 25th.
1. Parameters for Setting of SSA Target.
a
FRC / Plan Voucher
Gross connections (SIM activations) SSA wise and Franchisee wise
b
RC
Recharge sales – SSA wise and Franchisee wise
c
POS
Active Retailer : Loading FRC / PLAN VOUCHER
Active Retailer : Loading RC
d
CDMA
Sale targets for other Consumer Mobility products – CDMA
e
Wi-MAX
Sale targets for other Consumer Mobility products – Wi-MAX
Targets will be assigned by Circle to SSAs and thereafter SSA will assign franchisee-wise target for above areas/ fields.
Circles will assign targets to SSAs on monthly basis for the following based on:
(a) For GSM, CDMA and Wi-max connections:
The target among SSAs may be apportioned on the basis of - Type of territory, total number of BTS (2G + 3G) in SSA in previous month, market potential, competition, desire growth etc.
(b) For recharge:
Recharge targets must be apportioned among SSAs as per total no. of active prepaid connection, ARPU in the previous month plus other important parameters like potential of the area, urban-rural mix industry growth rate etc.
(c) For POS :
Based on number of BTS
2. Parameters for Setting of Franchisee Target.
SSA Head will allocate connections at least on the last year percentage share by franchisees in SSA & recharge target among franchisees on monthly basis based on number of BTS and class of territories. Remaining target will be allocated to other channels/sales partners.
a) For connections:-
50% of target as per class of territory
50% of target as per total number of BTS in territory
As an illustrative example,
SSA target = 15000
Let 80% of monthly target of SSA = 12000
Let there be 1 territory each of class A, B and C
Target to be allocated as per territory class = 50% of 12000=6000
Average per territory = 2000
The weight age for A, B and C type territory would be 1.3, 1 and 0.7 respectively.
Distributed target would be for Type A  2600
For type B  2000 and for Type C  1400
Remaining 6000 connections target may be allocated in proportion to number of BTS in the territory.
b) For recharge:-
SSAs may further apportion the recharge target as per number of BTS and class of territory.
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c) For POS:
SSA should ensure that the targets set by BSNL corporate office for active retailers loading RC and active retailers loading FRC / Plan Voucher is met progressively. SSA will assign target for active retailers loading RC and active retailers loading FRC / Plan Voucher to franchisee based number of BTS/ potential as given below:
i. Number of retailers loading RC atleast 8 per BTS
ii. Number of retailers loading FRC / Plan Voucher atleast 3 per BTS
d) Apart from these targets for any other products from other business units shall be set by concerned business units however franchisee’s performance review may not consider achievement against those targets.
B. Performance Management: Each SSA must conduct a review meeting in first week of every calendar month where each franchisee’s performance in previous month must be evaluated. Each Circle must conduct a review meeting every quarter to review the same. This meeting must be conducted within fifteen days of quarter ending.
1. Appointment of Review committees:
i. Each SSA must appoint a performance review committee of at least three executives which must consist of SSA Head and SSA Sales Head (Mobility) and Retailer Manager Coordinator (RMC). Franchisee manager of particular franchisee should also be part of review discussion for that franchisee.
ii. For Circle level reviews, Circle should appoint a review committee for each SSA under chairmanship of GM(Consumer Mobility). Each committee will have three executives including chairman from Circle (common for each SSA) and SSA Head of concerned SSA.
Weightage for targets for evaluating performance
Parameters
Weightage
Type A Parameters
FRC / Plan Voucher
45%
RC
15%
POS
15%
Type B Parameters
% of CAF forms submitted
15%
Percentage of recharge sales via C-TOPUP
10%
Total
100%
Bench Mark Score
50%
Note: FRC / Plan Voucher include new connections of GSM / CDMA / Wi-MAX.
Regular performance measurement and evaluation of franchisee performance needs to be done as follows:
The performance for each franchisee should be evaluated monthly by SSA review committee on the bases of above guidelines. It should be noted that all existing territories of the franchisee should be aggregated while calculating the cumulative performance score as described above. In case the franchisee has territories across multiple SSAs, each SSA must provide the performance inputs to the Circle who should compile the franchisee performance score. SSA must communicate the monthly performance inputs to franchisee so that he can improve.
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iii. Review Process at SSA: For the purpose of monthly reviews various parameters, their scoring and cut-offs are given in table below
Maximum score on any parameter will be limited to 100%.
Cut-off scores can be upwardly revised by Circle review committee with at least 60 days notification to franchisees. Apart from the parameters listed above, review committee should discuss about any other complaints received about the franchisee and warnings / monetary fines could be issued / imposed. SSA committee must prepare a scorecard for each franchisee before monthly review meeting. The scorecards for three months should be sent for Circle level review each quarter.
iv. Review Process at Circle/SSA: Review committee at Circle should conduct a review of each franchisee every quarter. Score cards for this review shall be furnished by SSAs in time for the review. Circle will prepare a cumulative scorecard based on target achievement in the previous quarter. Circle can review performance of franchisees in between the quarterly review period also (especially in cases where the franchisee has not been meeting performance targets) and take action as described below.
v. Rewards: Every quarter, Circles can reward the top five franchisees in the Circle. Both type ‘A’ and type ‘B’ parameters should be considered for award consideration.
vi. Consequences for Poor Performance: Any franchisee who does not meet the cutoff score on any parameters (type A or type B) becomes liable for penalty as per the clause O (a) in section 5.
vii. Performance based termination:
a. Any franchisee who does not meet the cut-off score on cumulative target achievement during past three months on type ‘A’ parameters will become eligible for termination. Circle review committee then has the right to terminate any franchisee that is eligible for termination by giving a 30-day notice. Total number of terminations based on quarterly performance review in any month should not exceed 5% of total Circle franchisees. Only franchisees who have been doing business with BSNL in all six months should be considered for this exercise. Any franchisee inducted in past six months will not be considered for this exercise. All franchisees will be given 30 days notice to wind up operations. However monthly review for the franchisees who have been served a Notice of Termination will happen for next month as per the process outlined above and any monetary penalties will still be applicable on non-performance. Circles must complete the process of appointing new franchisee and hand-over arrangements within 90 days. Franchisees who are terminated will not be eligible to bid for any franchisee EOI for any territory for the next two years. Circle/SSA may use look-after arrangement in these vacant territories. Parameter (measured on monthly basis) Scoring Cut-Off Score
1
Gross Connections GSM, CDMA, Wi-MAX
% of target achieved in each product
>50%
2
Revenue/ Recharge sales GSM/ CDMA/ Wi-MAX in month
% of target achieved in each product
>50%
3
No. of retailers billed in month through BSNL specified system
% of target achieved
>50%
4
% of CAF forms submitted
No. of CAF submitted within specified time frame as a ratio of No. of activations within Franchisee’s network
>90%
5
% of Recharge sales via C-TOPUP out of total recharge sale
% of target achieved
>60%
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b. However, without prejudice to the performance based termination described in the above para vii,a, any new franchisee after being inducted in to the channel network, if it is found that the franchisee is not doing serious business within three months of launch is liable to be terminated by the SSA, with prior approval of the competent authority, based on the franchisee performances with respect to the monthly target allotted to him after giving him one month notice. Under such condition BSNL will be at liberty to encash the PBG amount also.
viii. Re-demarcation of territory: BSNL reserves the right to redefine territories in cases where franchisee has not met the performance criteria (defined above in this policy) for a period of more than three months.
ix. Confidentiality: All data collected or generated during the review process at SSA or Circle level should be treated as confidential. It can be discussed with franchisees however no data related to other franchisees should be given to any franchisee. Access to this data should also be restricted to only competent authorities as decided by Circle Head or SSA Head.
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Section 5: Discounts & Commissions for Franchisee
i. Total commission / discount payable to franchisee channel (Franchisee, Rural Distributors and Retailers) on various products will be announced by BSNL on introduction of new product and may be revised or discontinue by BSNL as per the changes in business environment.
ii. Franchisee must pass on part of the discount/commission to retailers/ RDs as described in Annexure-E. These figures are the minimum share which franchisee must pass on to retailers/ RDs.
a. Wherever retailers are being served through “RURAL DISTRIBUTOR”, franchisee has to pass on at least 90% of the franchisee commission/discount to rural distributor out of which 75% will be passed by RDs to retailers on Recharge / C-TOPUP.
b. For postpaid connections, the discount/commission will be given in two steps unless specified otherwise:
 50% on submission of CAF
 50% after payment of first bill by the subscriber
c. All other claims may be submitted on monthly basis. BSNL’s designated nodal officer to verify and sign the claim and forward it to the Accounts Department. Payment should be made within 2 weeks of the receipt of claim.
d. Payment will be from SSA Head Quarter preferably through ECS / Direct credit to account or cheque. SSA will give a detailed report regarding payment of all claims to franchisee on monthly basis to Circle office.
A. Penalty:
a. Consequences for Poor Performance: Any franchisee who does not meet the cutoff score on any parameters (type A or type B) becomes liable for penalty as per the table given below:
Penalty Structure for Franchisees
Class of Territory
Month
1
2
3
4
5
6
Issuer
SSA
SSA
Circle*
SSA
SSA
Circle
PBG in Rs.
Warning
Strong Warning
Base monetary penalty
Monetary penalty of 110% of col. 3
Monetary penalty of 125% of col. 3
Monetary penalty of 150% of col. 3
A
300000
B
200000
C
100000
* Base monetary Penalty upto 2.5% of PBG based on weightage defined for various parameters of targets for evaluating performance may be decided by Circle Head.
b. Action against Cross-selling: If franchisee found to be involved in cross selling:
(i) 1st offence explanation of the franchisee to be called giving ten days time to submit response. C-TOPUP number of all such retailer to be disconnected under intimation to franchisee, if either no reply is received or the explanation of franchisee is not satisfactory.
(ii) 2nd offence:- Explanation of the franchisee to be called giving ten days time to submit response. C-TOPUP numbers of all such retailers to be disconnected under intimation to franchisee, if either no reply is received or the explanation of franchisee is not satisfactory and also their balance is to be forfeited.
(iii) 3rd offence and beyond:-C-TOPUP numbers of all such retailers to be disconnected under intimation to franchisee, and their balance will be forfeited + Rs.3000/- penalty per retailer.
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B. General Terms & Conditions
a. Franchisees may be given right to view Franchisee portion of Sancharsoft, which they are supposed to view periodically and take necessary actions.
b. BSNL reserves the right to change the terms of trade from time to time with notice period of 30 days.
c. BSNL reserves the right to withhold or delay the discount/commission for the Franchisees in case of any pending disputes in matters relating to activations or cancellations.
d. In case of dispute arising between the Franchisee and BSNL, the same shall be adjudicated by the Circle Head or any official appointed by the Circle Head.
e. The company’s decision will be final on all matters relating to the business and will be binding on the Franchisee.
f. It will be the Company’s endeavor to make the payment to the Franchisees as per the schedule, however this may stretch beyond the scheduled time only in case of delays in getting claims from the Franchisees or in case of incorrect claims.
g. The payment to the Franchisees will be made through a cheque / ECS after deducting applicable taxes.
h. All Franchisees will report to SSA Head through the nodal officer appointed by him.
i. All taxes present & Future additional, taxes /Lessees/ duties etc thus may be levied by the govt. / Local authorities etc. will be to the franchisee a/c.
j. The Franchisee shall comply with all applicable laws, bye Laws rules, regulations, orders, directions notifications etc of the Govt./ Court/Tribunals and shall also comply with all directions issued by BSNL and provide BSNL with all information and cooperation that BSNL may reasonably require from time to time.
k. The franchisee has to fully cooperate with BSNL to investigate any complaint from the public, retailers or BSNL’s sales teams.
l. Franchisee shall be liable for all payments of wages, Salary etc to its employees & shall comply with all statutory laws, rules, relating to employment, wages, PF, ID, act etc.
m. The Franchisee shall fully indemnify, depend & hold BSNL harmless from and against all claims, Liability, Losses or damages recoveries, proceedings, actions, Judgments costs, charges & expenses which may be made or brought or commences against BSNL or which BSNL may or may have to bear, pay or suffer directly or indirectly in connection with any breach Franchisee’s agreement by franchisee or its agents, employees, offices.
n. BSNL Shall not be liable for any act of discount/commission or omission of any third party.
o. During the currency of agreement, franchisee will not be permitted to provide services to any other telecom service provider.
p. That franchisee shall display prominently the information prescribed by BSNL from time to time & will display a signboard, of size decided by BSNL, indicating the name & logo/Brand name of BSNL as may be prescribed by BSNL.
q. That franchisee shall pay all dues & outstanding to BSNL during the currency of assessment or on termination of the agreement as the case may, even if any dispute is pending between the franchisee & BSNL. The same shall be adjustable by the Circle Head or official appointed by Circle Head.
r. The franchisee will have to abide by the policy rules, regulations & instructions of BSNL as revised/modified from time to time, without any prior notice to the franchisee in respect of all matters including security deposit / PBG, discount/commission payable to the franchisee etc.
s. Franchisee must enter list of material received, sold and available with him and all his retailers on a daily basis through BSNL –specified IT system.
t. PBG shall be forfeited if newly appointed franchisee does not start business within 60 days.
u. Franchisee who have not migrated or surrender franchisee-ship, the cost of the products available with him and losses to BSNL shall be recovered from PBG.
v. Franchisee may surrender his franchisee ship by giving 60 days notice, Such Franchisee shall not be eligible for participating in the EoI process for next two years in circle
w. PBG shall be refunded after adjusting dues / claims if the franchisee has surrendered his territory with mutual consents.
x. In case of termination of franchisee-ship on performance based the penalty and other dues shall be recovered from PBG and rest be refunded back.
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SECTION ‘C’
Detailed Terms & Conditions of the EoI
I. In case the successful franchisee fails to submit the required documents at the time of agreement or does not turn up for agreement within stipulated time or any information supplied by bidder found fake at any point of time, the EMD of the franchisee shall be forfeited and the consideration for franchisee ship shall be treated as cancelled.
II. The experience certificate should be issued by at least an officer of Gr.’A’ or equivalent rank in case of government or PSUs. In case of private operators the experience certificate should be issued by marketing head of the company.
III. The successful franchisee has to submit the performance bank guarantee (PBG) for a period of 3&1/2 years from the date of agreement papers submission. No interest is payable on performance bank guarantee.
IV. The successful franchisee will have to sign contract agreement within 15 days of the acceptance of the franchisee acceptance document
V. The PBG is liable to be forfeited in case the franchisee fails or violate the terms and conditions in any manner.
VI. In the event of any breach of any terms and conditions or delay or default, the contract will be terminated and the security deposited will be forfeited by the BSNL
VII. Conditional acceptance or any modification to the terms and conditions given in the document are liable to be rejected and EMD will be forfeited.
VIII. Contract
a. Validity of the contract shall be up to three years from the date of agreement.
b. Numbers of franchisee can be increased or decreased as per BSNL requirement.
IX. Right of the CGMT , Kerala Telecom circle:
a. CGMT , Kerala Telecom circle , reserves the right to accept or reject any or all the franchisee ship request in part or full, without assigning any reason whatsoever.
b. CGMT, Kerala Telecom circle, reserves the right to terminate the contract at any time by giving one month's notice in writing without assigning any reason.
c. In case of violation of terms and conditions of the contract or unsatisfactory services, CGMT, Kerala Telecom circle, reserves the right to terminate the contract at any time and forfeit the PBG.
X. In case of selection. The BSNL franchisee will sign an agreement with BSNL on non judicial stamp paper of Rs.100/- to be arranged by franchisee.
XI. Other conditions:
a. The franchisee ship shall initially be for a period of three years from the date of execution of agreement and is subjected to review of performance as prescribed by BSNL.
b. Franchisee for BSNL services should provide his present permanent address and bank account number at the time taking franchisee ship.
XII. All franchisee for sales/ servicing of BSNL services shall operate on valid and authenticated documents including identity status with photograph.
XIII. The identification/ verification of BSNL customers brought by the franchisee for sale of BSNL services shall be carried out by the franchisee as per prescribed format including fresh guidelines/ orders by BSNL issued by Govt. of India.
XIV. The empanelment of the franchisee for BSNL services shall be without prejudice to the right of BSNL to market these services from its existing or outlets including customer service centres. Nothing shall prevent BSNL to work out and introduce in future.
XV. BSNL shall reserve the right to cancel the franchisee ship for BSNL services at any time without assigning any reason.
XVI. All disputes arising out of franchisee for sales/servicing of postpaid BSNL mobile services and the BSNL on the other part shall be decided by arbitration through an arbitrator to be appointed by the CGM, Kerala as per existing orders on the subject.
XVII. The policy of commission, bonus and rewards can be reviewed by BSNL at any time and decision of BSNL in this regard will be final.
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XVIII. Dispute Resolution/Arbitration
Any question, dispute or differences arising out of or in connection with this agreement or breach, termination or validity hereof, shall be first endeavored to be settled through bipartite discussion or negotiations between the parties. If the dispute cannot be amicably settled either party, as soon as practicable, but not earlier than three months after a request to settle the dispute amicably has been made to the other party, give to the other party note in writing or existence of such question, dispute or difference, specifying the nature and the point at issue, and the same shall be finally settled by Arbitration conducted in O/o Chief General Manager, Kerala Telecom Circle, Trivandrum 33 in accordance with The Arbitration and Conciliation Act 1996 any modifications or reenactments thereto and relevant laws and regulations in force at that time in India. All such disputes and differences which may arise between the parties here to as to the meaning, construction or effect of any of the terms and provisions of this agreement or as to the right or claim of either party under this agreement shall be referred to the sole arbitration of the Chief General Manager , Kerala telecom Circle/ District or his nominee including any officer of Bharat Sanchar Nigam Limited (BSNL) nominated by him and the Franchisee shall not raise any objection to such arbitration on the ground that the arbitrator is an officer of Bharat Sanchar Nigam Limited (BSNL) and as such is an interested party or that the Arbitrator so appointed has earlier dealt with the subject matter of this agreement. Any order / Directions / Awards of the Arbitrator shall be final and binding on both the parties. The arbitration proceedings shall take place in Trivandrum and will be governed by the provisions of The Arbitration and Conciliation Act 1996 or of any statutory amendment there to or any reenactment thereof for the time being in force. The Arbitrator so appointed shall pass a speaking award. In case of any dispute, the Trivandrum Court alone shall have the territorial jurisdiction to adjudicate upon the matter.
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ANNEXURE – B
FORMAT OF BANK GUARANTEE FOR EARNEST MONEY DEPOSIT (EMD)
(To be typed on Rs.100/- non-judicial stamp paper)
WHEREAS ______________________________(Name of Bidder) (hereinafter called "the Bidder" intend to submit its Bid no._______________________ (Date)_______(hereinafter called "the Bid") in accordance EXPRESSION OF INTERSEST(EOI) No _____________ DATED_______INVITED BY M/s. BHARAT SANCHAR NIGAM LTD. having their Registered Office at BHARAT SANCHAR BHAWAN JANPATH NEW DELHI AND CIRCLE OFFICE AT ________________________ (hereinafter called the BSNL) for_________________________.
As an irrevocable Bank Guarantee against Earnest Money Deposit for as amount of ____________________ is required to be submitted by the bidder as a condition precedent for participation in the said EOI ,which amount is liable to be forfeited on the happening of any contingencies mentioned herein and or terms and conditions as specified in said EOI.
We, the ____________________________ Bank at _____________________having our Head Office___________________________________________address) hereinafter called " BANK") guarantee and undertake to pay immediately on demand by .BSNL the amount ___________________________________without any reservation. protest. demur and recourse. Any such demand made by BSNL shall be conclusive and binding on us irrespective of any dispute or difference raised by the BIDDER. The Bank binds itself, its successors and assigns by these presents;
THE CONDITIONS of the obligation are:
1. If the bidder withdraws or amends his bid during the period of validity specified by the bidder or
2. fails or refuses to accept the letter of intent or conditional acceptance of letter of intent or
3. any information / documents furnished by the bidder found to be fake or
4. if the bidder , having been notified of acceptance of his bid by the BSNL during the period of bid validity
(a) fails or refuses to execute the contract / ARGEEMENT ,if required, within stipulated time or
(b) fails to submit , within stipulated time ,the required documents for signing of contract or
(c) fails or refuses to furnish the performance Bank Guarantee , in accordance with clause ----- of said EOI.
Bank undertake to pay to the BSNL up to the above amount upon receipt of his first written demand, without the BSNL having to substantiate his demand, provided that in his demand BSNL will note that the amount claimed by him is due to him owing to the occurrence the above conditions and breach of terms and conditions of said EOI.
Notwithstanding anything contained herein
i) Our liability under this Bank Guarantee shall not exceed Rs.__________ (Rupees ________________________________only)
ii) This Bank Guarantee shall irrevocable and shall remain valid up to ---- days from issue of bank guarantee. If any further extension is required the same shall be extended to such required period on receiving request in this regard from bidder.
Dated _________________day of ________________________20____
SIGNATURE OF THE BANK
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ANNEXURE – C
Product List for FMCG Industry
Following product categories will be eligible for FMCG industry experience
a. Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash (soaps).
b. Cosmetics and toiletries, deodorants, perfumes, feminine hygiene, paper products.
c. Household care fabric wash including laundry soaps and synthetic detergents; household cleaners, such as dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish and furniture polish.
d. Food and health beverages, branded flour, branded dairy products, branded sugarcane, bakery products such as bread, biscuits, etc., beverages such as milk, tea, coffee, juices, carbonated drinks, bottled water etc, snack food, chocolates, tobacco products Ayurvedic preparations, over the counter (OTC) allopathic preparations etc.
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FRANCHISEE DISCOUNT/COMMISSION STRUCTURE
The discount / commission of Product and services may be modified from time to time and that will be binding as per the BSNL guidelines.
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ANNEXURE – E
SHARING OF DISCOUNT/ COMMISSION
Table- I A (Two Tier) Franchisee – Retailer
Sharing of franchisee Discount/ Commission among Franchisee  Retailers Product Franchisee Retailers
New Connection (Prepaid/ Postpaid)
30%
70%
CAF Commission
70%
30%
Recharge / C-TOPUP
25%
75%
Note- As major share of CAF commission is given to franchisee as compared to retailers, The part of the penalty imposed by DOT for which franchisee is responsible shall be passed on to franchisee as being done now.
Table- I B (Three Tier) Franchisee – RDs – Retailers
Sharing of franchisee Discount/ Commission among Franchisee/ RDs/ Retailers Product Franchisee RDs Retailers
New Connection (Prepaid/ Postpaid)
15%
15%
70%
CAF Commission
50%
20%
30%
Recharge / C-TOPUP
10%
15%
75%
Wherever retailers are being served through ‘Rural Distributors (RDs)’, franchisee has to pass on 90% of Recharge / C-TOPUP of the franchisee commission/discount to rural distributors.
Table- II (Two Tier) RDs – Retailers
Sharing of franchisee Discount/ Commission among RDs/ Retailers Product RDs Retailers
New Connection (Prepaid/ Postpaid)
15%
70%
CAF Commission
50%
30%
Recharge / C-TOPUP
15%
75%
Table- III DSA
Sharing of franchisee Discount/ Commission for DSA Product DSA
New Connection (Prepaid/ Postpaid)
70%
CAF Commission
50%
Recharge / C-TOPUP
75%
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ANNEXURE – F
FORMAT OF THE PERFORMANCE BANK GUARANTEE
(To be typed on Rs.100/- non-judicial stamp paper)
Bank Guarantee in respect of Agreement dated ............ between Bharat Sanchar Nigam Limited and M/s ..............................................................................., a company registered under The Companies Act, 1956 and having its Registered Office at .................................... (hereinafter called “Franchisee”) has entered into an agreement dated ............ (hereinafter referred to as “the said agreement”) with M/s Bharat Sanchar Nigam Limited (BSNL in short) (A Government of India Enterprise) (hereinafter referred to as “BSNL”) with Corporate office at Regd. & Corporate Office Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi – 110001, through / ……………….Circle whereby BSNL has agreed to appoint Franchisees for providing BSNL service on the terms and conditions exclusively mentioned therein for the area ........................................_( Name of the area for Franchisee / Area code for Franchisee).
It has been agreed between the parties that a Bank Guarantee for Rs. ................. (Rupees ........ lakh only) shall be given by the Franchisee in favour of the BSNL for due and faithful performance of the terms and conditions of the said agreement.
........................................................ Bank having its office at ............................................... has at the request of the Franchisee (M/s ……………. ), agreed to give the guarantee as hereinafter contained:
1. We, ............................ (hereinafter called ‘the Bank”) do hereby undertake and assure to the BSNL that if in the opinion of the BSNL, the Franchisee has in any way failed to observe or perform the terms and conditions of the said agreement or has committed any breach of its obligations there-under, the Bank shall on demand and without any objection or demur pay to the BSNL the said sum of Rs. ………/- (Rupees ……… lakh only) or such lesser amount as BSNL may demand without requiring BSNL to have recourse to any legal remedy that may be available to it compel the Bank to pay the same.
2. Any such demand from the BSNL shall be conclusive as regards the liability of Franchisee to pay to BSNL or as regards the amount payable by the Bank under this guarantee. The Bank shall not be entitled to withhold payment on the ground that the Franchisee had disputed its liability to pay or has disputed the quantum of the amount or that any arbitration proceeding or legal proceeding is pending between Franchisee and BSNL regarding the claim.
3. We, the Bank further agree that the guarantee shall come into force from the date hereof and shall remain in full force and effect for the period of 3½ years from the date of commencement of the agreement or the term of this guarantee whichever is later. But if the period of the said agreement is extended either pursuant to the provisions in the said Agreement or by mutual agreement between the Franchisee and the BSNL, the Bank shall automatically renew the period of the Guarantee for such period which expires 6 (six) months after the renewed period of the said agreement failing which it shall pay to the BSNL the said sum of Rs. ………../- (Rupees …………… lakh only) without BSNL demanding the payment of the above sum.
4. The Bank further agrees that the BSNL shall have the fullest liberty without the consent of the Bank and without affecting in any way the obligations hereunder to vary any of the terms and conditions of the said agreement or to extend the time for performance of the said agreement from any of the powers exercisable by BSNL against the Franchisee and to forebear to enforce any of the terms and conditions relating to the said agreement and the Bank shall not be relieved from its liability by reason of such failure or extension being granted to Franchisee or through any forbearance, act or omission on the part of BSNL or any indulgence by BSNL to Franchisee or any other matter or thing whatsoever which under the law relating to sureties would but for this provision have the effect of relieving or discharging the guarantor.
5. The Bank further agrees that in case this Guarantee is required for a larger period and it is not extended by the Bank beyond the period specified above in Clause 3, the Bank shall pay to BSNL
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without BSNL having to demand the payment of the said sum of Rs…………. /- (Rupees ……….. lakh only) on the last day on which the Bank Guarantee is due to expire.
6. Notwithstanding anything herein contained;
(a) The liability of the Bank under this guarantee is restricted to Rs………. /- (Rupees …………... lakh only) and it will remain in force for a period of 3½ years i.e. upto ........ (6 month after the expiry of the agreement)
(b) The guarantee shall stand completely discharged and all rights of the BSNL under this Guarantee shall be extinguished if no claim or demand is made on us in writing on or before...................
7. The Bank guarantees under its constitutional power to give this guarantee and.................................................... and ........................ who have signed it on behalf of the Bank have authority to do so.
(Authorized Signature of the Bank Official)
Power of Attorney General:
Dated:
At
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ANNEXURE – G
List of authorized representatives of franchisee
S.No.
Name of Authorized representative
Address
Mobile No.
Email id.
1
2
3
Note: The franchisee shall be responsible for the act / work done by the above authorized representative
EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Seal & Signature of the Bidder Page 29
ANNEXURE - H
To
Asstt General Manager (S&M)
O/o Chief General Manager
…. Telecom Circle, ………
Sub: Submission of EOI for Franchisee ship (Name of the area ………………………../ district………………………………….…)
Dear Sir,
With reference to your advertisement inviting expressions of interest on the above subject, I / we hereby submit my / our expression of interest duly completed all the details called for.
Thanking you,
Yours sincerely,
Signature
(Name of the authorized signatory)
For & on behalf of
Seal of the Firm/Company/Organization
Encl.:
(I) All Annexure duly filled up & signed with supporting documents
(II) DD for fee of EOI document Rs 1050/- in case EoI document downloaded from site.
(ii) EMD of Rs. ………………...
EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Seal & Signature of the Bidder Page 30
ANNEXURE – I
Particulars of the Applicant seeking Franchisee-ship
1. Name of the applicant / Organization: M/s.........................
....................................................
2. Registered Address / Office Address ………………….........................
....................................................
Telephone No. (s)
Mobile No (s)
Fax
E-mail
3. Status of the applicant / organization (with supporting documents) Tick the relevant one
a) Proprietorship
b) Partnership
c) Private Limited
d) Public Limited
e) Others
4. Name of the area (for Franchisee) / Area Code for (Franchisee )
5. Date of inception of the firm / organization
6. LST / CST No. (if any)
7. PAN No / GIR No.
8. Turnover of the firm / organization over the last two years (with supporting documents)
9. Names of the Directors along with %age share
10. Name of the Executive Director / Proprietor:
(Who will manage the Franchiseeship)
11. Residential Address of the Executive Director / Proprietor
12. Mobile No. and Email id of the Executive Director / Proprietor
(i) Private and public limited company or PSU any one of the directors should be graduate and association with the firm should be of more than two years.
13. Name of the Banker with address and contact number(s)
14. Present activity with details, and the names of the organizations for which the applicant is acting as Franchisee / wholesaler/Franchisee etc.
15. Number of Franchisees / retailers for the activity indicated in 13 above
16. Total manpower on roll employed / engaged by the firm / organization
17. Work experience of minimum........... with full details thereof. (supporting documents to be submitted)
Are you existing franchisee of BSNL , if yes, please give details.
18. Have you applied for more than one Franchisee ship. If Yes, give details
19. Details of the required office space-
(a). Ownership Category
Owned Rented
(b). Possession
Already in possession
Possession can be taken within........ days
(c) Address of the office
EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Seal & Signature of the Bidder Page 31
ANNEXURE – J
DECLARATION
I, ……………………………………………………………………….., on behalf of ……………………………………………………………. having gone through the terms & conditions of the EOI and agree to abide by the same in case the Franchisee-ship is awarded to me / our firm / company.
Name of the Signatory
For and on behalf of
EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Seal & Signature of the Bidder Page 32
ANNEXURE - K
Location for Franchisee ship applied for
(As per details given in ANNEXURE - H)
S.No.
Location/Code number of area
Name of SSA
1.
Other location area if applied for / Working ( Pl see the note below)
S. No.
Location/ Code number of area
Name of SSA and Circle
Applied / Working
1.
2.
3.
Declaration
I further declare that the information given above is true. The declaration if found wrong, I may be disqualified from all the franchisee-ship areas.
Dated this ………….. Day of ……………… 20…
Seal and Signature: ………………………..
Note:- Here Franchisee location/area applied/working in the name of a proprietorship firm in which the applicant is a proprietor, a partnership firm in which the applicant is a partner or a company in which the applicant is a Director/Shareholder shall be included for determining the eligibility of number of areas in the Circle as a whole as per the Clause “e” of Section 2 A of the EOI document.
EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Seal & Signature of the Bidder Page 33
ANNEXURE - L
Format of Certificate about close relatives working in BSNL
(To be submitted by all the Owner/ Partners/Directors of the Company)
“I ……………………….. s/o ………………………….. r/o ……………………………. here by certify that none of my relative(s) as defined in the EOI document is/are employed in BSNL unit as per details given in tender document. In case at any stage, it found that the information given by me is false / incorrect, BSNL shall have the absolute right to take any action as deemed fit / without any prior intimation to me.”
The near relatives for this purpose are defined as:-
a) Members of a Hindu undivided family.
b) They are husband and wife.
c) The one is related to the other in the manner as father, mother, son(s) & son’s wife (daughter in law), Daughter(s) and daughter’s husband (son in law), brother(s) and brother’s wife, sister(s) and sister’s husband (brother in law).
Dated this ………….. Day of ……………… 20…
Seal and Signature: ………………………..
EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Seal & Signature of the Bidder Page 34
ANNEXURE – M
List of areas for which EOI is called for
Sl.No
SSA
Territory Name
Class
Territory Code
Area Description
1
Trivandrum
Neyyattinkara
C
KL01107
Chenkal, Karakkonam, Neyyattinkara, Parassala, Perinkadavila, Plamoottukkada, Udiyankulangara exchange areas,.
Kanjiramkulam, Poovar, Punnamkulam, Vizhinjam exchange areas.
2
Trivandrum
Kazhakoottam
B
KL01104
Kaniyapuram, Madanvila, perumathura, Murukkumpuzha, Pothencode, Thonnakkal, Vengode.
3
Trivandrum
Karamana
B
KL01105
Balaramapuram, Kaimanam, Nemom.
4
Trivandrum
Attingal
C
KL01102
Attingal, Avanavancherry, Katchery,Chirayilkeezhu,Valiyakada Jn, Poovampara, Kadakkavoor, Perughuzhi,Poikamukku,Vakkom.
5
Ernakulam
Kavarathy**
C
KL06112
Lakshadweep Islands
6
Ernakulam
Kothamangalam
B
KL06107
Kothamangalam Taluk
7
Trichur
Trichur
A
KL07101
DEP-1(Kuriachira, Ayyanthole, Nedupuzha,OCB Trichur) Division & DEP –III(Punkunnam, Parappur, Mundur, Mulumkunnathukavu, Amalanagar) Division and Trichur 5ESS and E10B Exchange area.
8
Malappuram
Ponnani
C
KL09106
Ponnani & Kuttipuram Divisions
9
Kannur
Kannur
A
KL11101
Kannur,alavil,,Pallikunnu,City, Chovva,Valapatanam, Azhikode, Kannadiparamba, Anjarakandy, Eachur, Munderi, Varam, Edakkad,Kadachira, Periassery, Thottada.
** There were no bidders for Kavarathy Territory in Ernakulam SSA, in the previous EOI No:GM(S&M)-CM/PV/KRL/1-113/EOI-2012//12-13/15 dtd 20-12-2012. Hence the following categories of bidders can also participate in the EOI for Kavarathy Territory.
1. Direct Selling Agents (DSAs)
2. Rural Distributors (RDs)
3. Existing franchisees as per the restrictions mentioned in Section 2 Clause A (Refer P.no .9 of EOI)
EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Seal & Signature of the Bidder Page 35
ANNEXURE – N
Sl.No
SSA
Address to which the filled EOIs should be either dropped in the drop box or send it through registered post.
1
Trivandrum
AGM (S&P), 1st Floor CTO Building, BSNL, Statue, Trivandrum 695 001. Mob. No: 9446094455
Fax No: 0471-2335757 Email Id:- pvshtvm@gmail.com
2
Ernakulam
DE (Project Vijay), O/o PGM, BSNL Bhavan, Kalathiparambil Road, Ernakulam – 682016 Mob No: 9446038433
Fax No: 0484-2202310 Email Id:- pvshenk@gmail.com
3
Trichur
AGM (SH & Mktg),BSNL Sanchar Bhavan, TUDA Road, Kovilakathumpadom, Trissur -22. Mob No: 9447752570
Fax No: 0487-2222155 Email Id:- pvshtcr@gmail.com
4
Malappuram
DE(Project Vijay), Sales Head , BSNL, Palace Building, Jubilee Road, Uphill, Malappuram – 676 504. Mob No: 9447766604
Fax No: 0483-2733050 Email Id:- pvshmrx@gmail.com
5
Kannur
AGM (Project Vijay),O/o GMTD, BSNL Bhavan, South Bazar, Kannur -2 Mob No: 9446564745
Fax No: 0497- 2701177 Email Id:- pvshcnn@gmail.com