EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 1 of 38
BHARAT SANCHAR NIGAM LIMITED
O/o Chief General Manager
Andhra Pradesh Telecom Circle
Expression of Interest
For
Franchisee ship of BSNL product and services for Sales and Distribution
in ……………………………………….. SSA
EOI No: .TA/SM-CM/38-1/EOI-2/SDP-2012/2013-14/48 Dated 24/06/2013
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 of Bid…14.00 Hrs of 18-07-2013
Date of opening of bid ………….15 00 Hrs of 18-07-2013
Signature and Seal of issuing authority…………………………………………………EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 2 of 38
This document contains 38 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:
Documents
submitted
S.
No. Documents to be 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, AnnexureG, H&I).
3
If EOI document is downloaded from Internet, a DD of Rs 1145/- (Rs 1000/-+
VAT 14.5%) 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 or 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 financial year 2011-12 (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 5 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”
Page 3 of 38
Bharat Sanchar Nigam Limited
O/o Chief General Manager,
Andhra Pradesh Telecom Circle
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.1145/-
(including
14.5%
VAT)
EMD
(in the form of BG)
BG No. …….
………………
Valid upto
…………
………..
Seal & Signature of Bidder …………………………………EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 4 of 38
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 10
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 13
16 B. Performance Management 14
Section 5: Discounts & Commissions for Franchisee
17 A. Penalty 17
18 B. General Terms & Conditions 18
Section C
19 Detailed Terms and Conditions of EoI 19
20 ANNEXURE – B : Bank Guarantee Format EMD 21
21 ANNEXURE – C : Product List for FMCG Industry 22
22 ANNEXURE – D: The franchisee commission and discount 23
23 ANNEXURE – E: The sharing of Franchisee discount/commission among
RDs, Retailers and DSA. 24
24 ANNEXURE – F : FORMAT OF THE Performance Bank Guarantee 25
25 ANNEXURE – G : List of authorized representatives of franchisee 27
26 ANNEXURE – H Covering Letter for Submission of EoI 28
27 ANNEXURE – I : Particulars of the Applicant seeking Franchisee-ship 29
28 ANNEXURE – J: DECLARATION 30
29 ANNEXURE – K : Primary Area (Location) for Franchisee ship applied for 31
30 ANNEXURE – L : Format of Certificate regarding close relatives working in
BSNL 32
31 ANNEXURE – M : List of vacant territories, Areas/Mandals covered in each
territory and the Contact address 33 - 38 EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 5 of 38
Bharat Sanchar Nigam Limited
O/o Chief General Manager,
Andhra Pradesh Telecom Circle
SECTION ‘A’
NOTICE INVITING EOI (Expression of Interest) for BSNL Franchisee Ship
EOI NO :TA/SM-CM/38-1/SDP-2012/2013-14/ 48
DATED 24-06-2013......................................................
Sealed EOI (location wise) are invited on behalf of CMD BSNL by CGM, A.P. Telecom Circle for
selection of Franchisees for sale of BSNL services and products at various locations in following
SSAs, from eligible and willing firms for various franchisee areas in different SDCAs of SSAs as
mentioned in Table-I below.
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.1145/-
(Rs 1000/- +
VAT 14.5%)
14 00 Hrs of
18-07-2013
15 00 Hrs of
18-07-2013
Note- The sale of EOI document will be from 27-06-2013 to 17-07-2013 from 1100 Hrs 15.00 Hrs
on 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.
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. EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 6 of 38
2. Bid document will be available from 10.00 Hrs of 27-06-2013. on any working day, on
payment of Rs.1145/- (non-refundable) in the form of cash/ crossed bank draft in favor of
Accounts Officer (Cash), BSNL O/oAP Telecom Circle ,Hyderabad 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.ap.bsnl.co.in. and cost of
document in the form of DD be deposited along with the bid.
4. Submission of EOI :– Separate EOI should be submitted for each vacant location and each
EOI should be super scribed with “CM-Franchisee-ship for ............ territory ............ SSA.” and
it should be dropped in drop box kept in the office of concerned GMTD office.......................
5. Opening of EOI :– EOI shall be opened area wise as per schedule attached, in the office of
the .GMTD of concerned Territory 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.
7. EOI document will neither be sent nor be accepted by Post / Courier. EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 7 of 38
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.
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. EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 8 of 38
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”
Page 9 of 38
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). This will be applicable for both Proprietorship &
Partnership firms
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 numbers of migrated territories are 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. EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 10 of 38
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 nonappointment 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 short-listed bidders, a Selection committee at Circle comprising of three
members will be formed for each SSA with the approval of Circle.
Selection Committee at Circle level with the approval of Circle Head
• Two executives from Circle office who will be common for all Selection
Committees – GM (Sales & Mktg-CM) and DGM (Finance)
• One member from the concerned SSA - SSA Head
e. After evaluation by the selection committee, the recommendation of the selection
committee shall be approved by Circle Head. LoI to successful bidder shall be issued by
the EOI issuing authority with the instruction to submit the requisite PBG at the concerned
SSA within 15 days time frame for signing the agreement. 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.
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. EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 11 of 38
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.
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 marksEOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 12 of 38
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.
For claiming experience original invoices/vouchers for the entire period claimed have to be
produced at the time of interview, if short-listed for the same.
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. Also proofs for having the business presence of having
shop/office in that particular area for a minimum period of 2 years have to be enclosed in
addition to the Sales Tax / VAT Registration certificate.
d. Interview / presentation before the selection committee (Total Marks – 5)
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’. EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 13 of 38
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.
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 EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 14 of 38
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. EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 15 of 38
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: 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 active 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, WiMAX
% 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%EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 16 of 38
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. EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 17 of 38
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
Month 1 2 3 4 5 6
Issuer SSA SSA Circle* SSA SSA Circle
Class of
Territory PBG in
Rs.
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
Warning Strong
Warning
* 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.
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. EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 18 of 38
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.
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. EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 19 of 38
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..A.P. Telecom circle:
a. CGMT , .AP 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, AP 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, AP 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 BSNL board 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. EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 20 of 38
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 Hyderabad 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 hereto 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 Andhra Pradesh Telecom
Circle 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 HYDERABAD and will be governed by
the provisions of The Arbitration and Conciliation Act 1996 or of any statutory amendment thereto
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 High Court of Andhra Pradesh, Hyderabad alone
shall have the territorial jurisdiction to adjudicate upon the matter.EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 21 of 38
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 ________________________2013
SIGNATURE OF THE BANK EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 22 of 38
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. EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 23 of 38
ANNEXURE-D
FRANCHISEE DISCOUNT/COMMISSION STRUCTURE
The discount / commission of Product and services will be issued separately.
The discount / commission of Product and services may be modified from time to time and that will be
binding as per the BSNL guidelines. EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 24 of 38
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% EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 25 of 38
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
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; EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 26 of 38
(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 EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 27 of 38
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
representativeEOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 28 of 38
ANNEXURE - H
To
Asstt General Manager (S&PP)
O/o Chief General Manager
Andhra Pradesh Telecom Circle,
Hyderabad-500001.
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 1145/- (including VAT 14.5%) in case EoI document
downloaded from site.
(ii) EMD of Rs. ………………... EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 29 of 38
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 EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 30 of 38
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”
Page 31 of 38
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 ofEOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 32 of 38
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 area if applied for / Working
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 ……………… 2013
Seal and Signature: ……………………….. EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 33 of 38
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”
Page 34 of 38
ANNEXURE - M
List of Territories for EOI-2( EOI No: TA/SM-CM/38-1/EOI-2/SDP-2012/2013-14/.48 Dated
24/06/2013
Sl.No. Name of the SSA Name of the Territory Class of
Territory
Territory
Code
1 Chittoor Pileru C AP0405
2 Medchal C AP0721
3 Mehdipatnam A AP0712
4
Hyderabad
Basheebagh C AP0701
5 Guntur Tenali C AP0602
6 Krishna Vijayawada-III B AP1104
7 Nellore Kovur C AP1505
8 Bhongiri C AP1404
9
Nalgonda
Kodada C AP1407
10 Kadapa Rajampeta C AP0305
11 Nizamabad Bodhan C AP1606
12 Wanaparthy C AP1206
13 Gadwal C AP1203
14 Kalwakurthy C AP1207
15
Mahaboobnagar
Shadnagar C AP1205
16 Gajwel C AP1306
17 Zaheerabad C AP1305
18
Medak
Narayankhed C AP1307
19 Khammam Yellandu C AP0906
NOTE :
A. For Bhongiri territory in Nalgonda SSA at Sl.No 8, the following relaxations are applicable
from the original conditions in the EOI document
1. The existing franchisees holding 2 territories in the Circle can also bid as a third
territory
2. The existing DSA’s are eligible to bid and their experience will be counted as
Telecom Experience
3. The TURN OVER criteria has been relaxed to Rs. 3 Lakhs instead of Rs 6 Lakhs
4. The Experience criteria have been relaxed to 6 Months instead of One year. EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 35 of 38
B. For Kovur territory in Nellore SSA at Sl.No 7, the existing DSA’s are also eligible to apply
and their DSA experience will be counted as Telecom Experience.
C. The following terminated franchisees of Gadwal, Kalwakurthy and Shadnagar territories,
are not eligible to bid for any of the territory in the present EOI.
1. M/s Sai Krupa Enterprises of Shadnagar & Kalwakurthy territory
2. M/s Prahlad Rao Dhage Enterprises of Gadwal territory EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 36 of 38
Details of Franchisee Territorial Areas/Mandals.
Sl.
No.
Name of
Territory
SSA Areas / Exchanges
/SDCAs Covered
Area/Mandal covered
1 Pileru Chittoor
Piler & Vayalpad SDCAs Mandals:- PILER, Rompicherla, Chinnagottigallu,
Gurramkonda, Kalikiri, Kalakada, Kambhamvaripalle,
Peddamandyam, Valmikipuram, Yerravaripalem
2 Medchal
Medchal SDCA, Dundigal,
AFA Dundigal, Kompally
Medchal, Muduchintalapally, Devarayamjal, Jaganguda,
Keesara, Koltur, Turkapally, Ponnala, Shameerpet,
Tumkunta, Leomeridian, Dundigal, Kompally,
Bowrampet, Gundlpochampally, Medcity, yellampeta.
3 Mehdipatnam Mahadipatnam,
Tolichowki,Golconda,
Mehedipatnam, Tolichowki, Golcodna, SD Hospital.
4 Basheebagh
Hyderabad
Saifabad part,
Doorsnchar Bhavan
Saifabad, RBI, AG Office, Abids, Basheerbagh,
Lakdikapol, Doorsancharbhavan,
Chiragalilane, Nampally, Redhills.
5 Tenali Guntur
Tenali main,
BPET,GNGR, Emani,
Chiluvuru, Duggiral,
Kolkaluru, Kuchipudi,
Nandivelugu,
Pedapalem, SJ Mudi,
Vallbhapuram.
Tenali, Duggirala,Part of Amruthaluru
6 Vijayawada-III Krishna
Ramavarappadu (Grs.),
Poranki (Grs.), Level-254,
255
Auto nagar, Bank colony, Currency nagar, Ashok
Nagar, Ayyappa Nagar, Kanuru, Poranki, Penamaluru,
Ramavarappadu, Yenikepadu & Nidamanuru
7 Kovur Nellore Kovur Alluru, Kodavaluru, Kovur, Vidavaluru
8 *Bhongiri SDCA Bhongiri Alair, Bhongir, bibinagar, Bommalaramaram, M.
turkapalle, Pochampalle, Rajapet, Yadagirigutta
9 Kodada
Nalgonda
SDCA Huzurnagar Chilkur, Gardepalle, Huzurnagar, Kodad, Mattampalle,
Mella cheruvu, Munagala, Nadigudem, Nereducherla
10 Rajampeta Kadapa Rajampeta, Kodur Chitvel, Kodur, Nandalur, Obulavaripalli, Penagalur,
Pullampeta, Rajampeta,
11 Bodhan Nizamabad Bodhan, Banswada,
Madnoor
Bodhan, Yedapply, Renjal, Kotagiri, Varni, Banswada,
Birkur
12 Wanaparthy
Wanaparthy, Kollapur Addakla, Ghanpur, Gopalpet, Kothakota, Pebbair,
Peddamandadi, Wanaparthy, Kodair, Kollapur, Panagal,
Pedakothapalli, Veepanagandal
13 Gadwal
Gadwal, Shanthinagar,
Atmakur
Dharur, Gadwal, Ghattu, Ieeja, Maldakal, Alampur,
Itikyala, Manopad, Waddepalli, Atmakur,
Chinachintakunta, Devarakadra, Narwa
14 Kalwakurthy Kalwakurthy, Amangal Kalwakurthy, Vangoor, Veldanda, Amangal, Madgula,
Midjil, Talakondapalli
15 Shadnagar
Mahaboob
Nagar
Shadnagar, Jadcherla Balanagar, Faruqnagar, Jadcherla, Keshampet, EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 37 of 38
Kondurg, Kothur
16 Gajwel Gajwel SDCA Gajwel, Doulathabad, Jagadevpur, Wargal
17 Zaheerabad Zaheerabad zaheerabad, Kohir, Raikode, Jarasangham, Nyalkal,
18 Narayankhed
Medak
Narayankhed narayankhed, Kangti, Manur, Kalher
19 Yellandu Khammam
Yellandu and Sudimalla
SDCAs and Palvoncha,
Mulkalapally Mandals of
Kothagudem SDCA
Yellandu, Garla, Singareni, G.Bayyaram, Tekulapally ,
Gundala, Palvoncha, Mulkalapally Mandals
* EOI of “CM-Franchisee Sales and Distribution Policy – 2012”
Page 38 of 38
SSA/ GMTD Office addresses for submission of EOI-2 Bids
Sl.No. Name of the
SSA
GMTD Office Address for
submitting the bid
Contact Phone
NOs. Fax.No:
1 Chittoor General Manager, BSNL,
Head Post Office Compound,
Near Gangamma Temple,
Thirupathi. Chittoor Dist.
0877-2227689 0877-2254444
2 Guntur General Manager, Telecom -
BSNL,Chandramouli Nagar,
GUNTUR-522007.
0863-2248042 0863-2351395
3 Hyderabad General Manager (CM),
% PGM – HTD,BSNL Bhavan,
Adarsh Nagar,Hyderabad -63.
040-23242434 040-23222439
4 Kadapa General Manager, Telecom -
BSNL,Beside Head Post Office,
Near I Town Police Station
Kadapa-516001.
08562-249901 08562-244234
5 Krishna General Manager, Telecom –
BSNL Bhavan,Chuttigunta, Eluru
road, Vijayawada-4.Krishna Dist.
0866-2444488 0866-2444338
6 Mahaboobna
gar
General Manager, Telecom -
BSNL, BSNL Bhavan, Near
Railway Station, Mahaboobnagar-
509050
08542-244800 08542-250800
7 Medak General Manager, Telecom -
BSNL, Balaji Nagar, Sangareddy-
502050
08455-279500 08455-276808
8 Nalgonda General Manager, Telecom -
BSNL, BSNL Bhavan, Panagal
Road, -508050
08682-222444 08682-225345
9 Nellore General Manager, Telecom -
BSNL, Near Leela Mahal Theatre,
VRC Centre, Nellore-524050.
0861-2306488 0861-2323200
10 Nizamabad General Manager, Telecom -
BSNL, Dubba, BSNL Quarters,
Nizamabad.
08462-240800 08462-239999
11 Khammam General Manager, Telecom –
BSNL, Near Vegetable Market,
Burhanpuram, Khammam-507002
08742-244500 08742-236969
http://www.ap.bsnl.co.in/flashapnews/EOI2_docu_SandDPolicy_2012.pdf
