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					                                                                Tender No.GH/Comp/MEL/067

                                     AIR INDIA LIMITED
                 TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

Dear Handling Agent,




        Sub: Comprehensive Handling at Tullamarine Airport, Melbourne (MEL).

        Air India Limited (AI), solely at its discretion desires to award Contract for
availing Ground Handling services on "Comprehensive basis" comprising of Passenger
Handling, Ramp handling, Cabin Cleaning & Flight Despatch services OR "Individual/
Partial Services basis" for one or more service component as referred under
Comprehensive basis above, to its flights at Tullamarine Airport, Melbourne. We
request you to submit your offer for handling Air India (AI) flights at Melbourne in the
format given below.

      You are requested to submit your 'Sealed Offer' on or before 2nd August 2012 by
1600 Hours in the office of Manager-Sydney, AI, mailing address: Suite 1503, Level
15, 31 Market Street, Sydney NSW 2000.

       Following Annexure are enclosed with this Tender Document.

       a)     Annex I    - AI Current schedule of operations at MEL
       b)     Annex II   - Resource requirement, procedures and service
                           standards expected
       c)     Annex IIA - Proposed Service Level Agreement (SLA)
                           (For Pax, Ramp & Cabin Cleaning)
       d)     Annex III - AI’s Service requirements as per IATA AHM
                           810, 2008 Version
       e)     Annex IV - Handling Company profile
       f)     Annex V - Requirements of Commercial offer
       g)     Annex VI - Integrity Pact Program

       Your offer should be in "Two Separate Sealed Envelopes" as given below:


ENVELOPE - 1: "HANDLING COMPANY PROFILE"
Please provide information regarding your Company in general and your capability to provide
ground-handling services at Tullamarine Airport (MEL) in particular. Your information must
reply points mentioned in Annex IV of this Tender document. "PLEASE DO NOT QUOTE
RATES IN THIS ENVELOPE."




                                                                           Page 1 of 46
                                                                Tender No.GH/Comp/MEL/067

                                     AIR INDIA LIMITED
                 TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

ENVELOPE -2: "COMMERCIAL OFFER -GH"

AI’s requirement of Ground Handling services as per IATA AHM 810, 2008 version is
specified in Annex III. Please also refer Annex II and Annex IIA, for AI's Resource
Requirement, Procedures as well as Proposed Service Level Agreement, which are
expected to be met for flight handling. Please submit your quotation in the format as
given in Annex V, for providing the resource and service requirements and complying all
the terms and conditions as given in Annex V of this Tender Document.

It may please be noted that, both the sealed envelopes must be clearly super -scribed as
stated above and submitted before the due date. Responses received after the due date,
time and incomplete response are liable to be disqualified.

The offers received will be opened on 8th August, 2012 at 1600 hours local time in the
office of Air India Manager-Melbourne, in the presence of those bidders who are
interested to be present. Initially, the Technical offers (Envelop I) will be opened.
Subsequently, the Commercial offers (Envelop II) will be opened if possible for those
bidders who meet AI requirements technically under Annex IV. AI reserves the right to
accept or reject any bids at its own discretion.

If you require any clarifications, please contact Mr.A.Vaz, Manager-Sydney, Air India
Ltd., Tel: 0061-414959310, Fax: 00612-92833371 or Email A.Vaz@airindia.com.au. We
shall appreciate if you confirm your participation in this tender.




                                                                             ( A.Vaz )
                                                                      Manager-Sydney
                                                                        Air India Ltd.




                                                                           Page 2 of 46
                                                                                   Tender No.GH/Comp/MEL/067

                                                 AIR INDIA LIMITED
                           TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

                                                                                                  ANNEX - I

                    AI FLIGHT SCHEDULE EFFECTIVE S-12 AT MEL

                   FLGHT
     DAYS                           A/C                                         SECTOR
                   NO
                                777-200
                   AI-312/AI-
MON/TUE/THU/SAT                 LR/777-              DEL              SYD             MEL               DEL
                   311
                                300ER/B-787
  LOCAL TIME                                         0140           1815/1945       2120/2255          0635+1
                                777-200
                   AI-316/AI-
  TUE/THU/SAT                   LR/777-              DEL              MEL                SYD            DEL
                   311
                                300ER/B-787
  LOCAL TIME                                         2315         1540+1/1720+1   1850+1/2030+1        0425+2

       LOCAL TIME IN MEL & SYD TO READ ONE HOUR LATER FROM 25TH MAR
       2012 TO 31ST MAR 12 AND FROM 7TH OCT 12 TO 27TH OCT 12


 NOTE:

                1. The Schedule provided above is for Summer Season-2012 effective March
                   2012. It may be clearly noted that Schedule is subject to change & intimation
                   of the same will be provided with reasonable Notice.
                2. Any changes in schedule with reasonable notice will not be a ground for
                   seeking any price escalation by Handling Agent.


       A/C configuration:       (Subject to change without notice)

                                          Passengers                        ULD Configuration\
                                          F      J          Y               Pallet Container

                A330-200                  -     24          255             04           14
                B777-200LR                08    35          195             04           18
                B777-300 ER               04    35          303             06           24
                B-787-800                 --    18          238             05           12


       Note:           Aircraft type and configuration - subject to change without notice.




                                                                                                Page 3 of 46
                                                                    Tender No.GH/Comp/MEL/067

                                       AIR INDIA LIMITED
                  TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

                                                                             ANNEX - II

             RESOURCE REQUIREMENTS, PROCEDURES AND
                       SERVICE STANDARDS EXPECTED

1. PASSENGER HANDLING

       1 Flight supervisor Pax Handling.

       1 Lead Agent Liaison with Ramp/Bag-
       room/Connections/Cleaning/Catering/Baggage Reconciliation and other
       concerned agencies.

       1 Service desk/Ticketing Counter- collecting excess baggage/Cash Collection ,
       looking after upgrades / downgrades .

       1 load controller.

       1Service Control Agent for accounting the correct count of check-in passengers as
       well as ensuring closing all E tickets.
       Also to take care of pre flighting.

       4 check-in agents (1 premium and 3 economy class).

       3 Kerbside meet and greet services to facilitate Business class/VIP/CIP passengers
       up to check in counters then to Lounge and then up to aircraft.

       2 Departure gate staff for Transit count and Departure count. (Additionally 4
       Check in staff to be multi tasked after closure of counters ) Will also handle
       UMs/YP.

       1   Transfer desk staff to facilitate transfer passengers.

       2   Arrivals staff plus whatever premium passenger escort staff and UMS/YPs
           (load dependant)

       1 Baggage services staff at the arrivals carousel to take care of PIR/DPR and all
       Baggage related functions.

        WCHR staff depending on demand – can be charged at a cost per WCHR to
       reduce costs

        The local ground handling agents will agree to provide flexible staff so that when
       loads are high, staffing levels increase, and when loads are lower, staffing can be
       reduced.


                                                                              Page 4 of 46
                                                           Tender No.GH/Comp/MEL/067

                              AIR INDIA LIMITED
          TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

The detailed duties and responsibilities will be provided which will be attachment
to the GHA.

All these Agents should be available for AI flight Handling on dedicated basis.

1.2     PROCEDURES & SERVICE LEVELS AND DUTIES

-      The staff will carry out the duties as given below following the procedures
       as given
-      Courteous and efficient service with a Smile is most important parameters
       for quality of service to the Passenger.
-      Extra care must be taken and all possible assistance must be provided to
       elderly passengers, physically challenged, ladies with children, UNMs and
       VIPs/CIPs.
-      Check In counters to be opened 03 Hrs before departure and will be
       closed at least 60 minutes before departure.
-      Agents will ensure that excess and /or oversized hand baggage is not
       allowed and gate withdrawal of such bags must be avoided
-      Liaison Agent will monitor Check In activity, close counters in time and
       release containers from baggage room for timely closing aircraft holds and
       ensuring on time departures.
-      Flight Supervisor along with the Service controller will ensure Total
       Compliance of Error Free APIS transmitted to INDIA .
-      Liaison Agent will also monitor and ensure connection of baggage,
       destination wise loading plan for baggage, and compliance with baggage
       reconciliation.
-      First/Executive class/VIP/CIP passengers with their baggage must be
       assisted right from the curb point reception desk till check in and later to
       the Lounge and then to the aircraft.
-      All passengers must be on board at least 15 minutes before departure.
       In case of passenger gate no show; timely action must be taken to off load
       his baggage to avoid delay to flight departure.
-      Agents knowing Hindi or any other Indian language will be preferred
-      AI may choose to provide its own Indian uniform for the staff at
       appropriate time. Till then the Handling Agent will provide them with their
       uniforms.
-      AI will provide initial training on AI specific systems and procedures by
       deputing an instructor. The Handling Agent will depute max number of
       staff to undergo the training. If the Handling Agent wants additional
       training for their staff due to high turnover within a period of two years,
       the HA will agree to pay for the training on Cost to AI basis.
-      Departure Agents will ensure retrieving heavy/odd size/cabin restricted
       hand baggage at the boarding gate and after tagging, handover to Ramp for
       loading in Security Container/Bulk.
-      Before opening of counters, Flight briefing session/check-in staff to be
       briefed regarding any special instructions, for passenger handling before a
       flight as specified by the Carrier’s Duty Manager.

                                                                      Page 5 of 46
                                                               Tender No.GH/Comp/MEL/067

                                 AIR INDIA LIMITED
             TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

     -    At all times, while rendering the Ground Handling services, safety/security
          procedures should not be compromised.
     -    The Handling Company will comply with the IATA, CASA/ASOB, CAA
          and any other local regulations.
     -    Periodic Review meetings (at least monthly and if requested frequently)
          will be held between the Carrier and the Handling Agent to review the
          quality of service provided and compliance of SLA review by the
          Handling Agent and discuss any modifications if required. Record of
          such meetings and commitments will be maintained.
     -     The Handling Agent shall make all possible efforts to overcome
          deficiencies in standards of service brought to their notice during the flight
          handling activities, with a time frame of duration of one month.
     -    In case of delayed arrival of the flight, the handling company shall
          endeavor to reduce ground time to the maximum extent possible to make
          up the delay.
     -    Handling Company will ensure deploying trained and authorized staff to
          carry out various functions under the contract.
     -    Handling Company will ensure that Carrier’s logo, Signage’s, flight details
          and other notices as specified from time to time, by the Carrier are
          properly displayed at the Check-in counters and Boarding gates.
     -    The Handling Company shall comply with the security procedure
          introduced from time to time.

2   RAMP HANDLING
     2.1 RAMP EQUIPMENT REQUIREMENT:
         02 Lower Deck Loaders, 01 Conveyor Bulk Loader, Garbage pick up, 01
          Toilet flushing truck, 01 potable water truck, 02 Tugs for Ramp and 01
          Tug for Baggage Room. Sufficient Container and Pallet Dollies and
          Baggage Trolleys, Cargo Trailer, 01 Push back Tractor with Tow Bar for
          Dep., min 08 wheel chokes, safety cones, GPU/ACU/ASU as required.
     2.2 MAN POWER REQUIREMENT:
          RAMP – 01 dedicated Supervisor with radio for coordination with
          baggage room and check-in counters and conversant with aligning Aero
          Bridge, to be available A-15 till Dep.
          Ramp Agents to be well trained for Equipment Operation, Ramp Safety
          and baggage Handling, ULDs restraining and locking, to be available A-15
          till Dep.
          Sufficient baggage handlers for delivery of Arrival Baggage, to be
          available A-10 mts. till last bag delivered.
          01 dedicated Supervisor in baggage room with radio for coordination with
          Check in counters, Interline Agency and Ramp, to be available from D-
          4hrs. till Dep.


                                                                          Page 6 of 46
                                                             Tender No.GH/Comp/MEL/067

                                 AIR INDIA LIMITED
             TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

          Sufficient Baggage Room Agents for loading destination wise containers
          as per given loading plan, to be available from D-4 hrs till Departure.


    2.3    RAMP PROCEDURES AND SERVICE LEVELS
-         Ramp Equipment and manpower must be positioned on the Ramp
          before Arrival-15 mts
-         Arrival Baggage Delivery First Bag within 08 minutes of Arr.
          Last Bag within 45 minutes of Arr.
-         Marshalling and stop signal for Arriving Aircraft on gate.
-         Ramp Supervisor must ensure Aerobridge is positioned safely for arriving
          aircraft.
-         All the Ramp Staff must be trained for Safety, DGR handling and should
          be authorized for operating ramp equipment and In Plane system. Training
          records to be made available on request.
-         Water potability tests to be carried as per local regulations and test
          certificate to be made available on request - subject to audit by AI.
-         Ramp Supervisor to sign and return the loading sheet certifying “loading
          has been carried out as per given loading plan.”
-         All arriving Cargo must be sent to Cargo ware House not later than 60 mts
          of Arr. And Departing Cargo to be brought under aircraft, under security
          escort, at least 2 hrs. before departure.
    -      Sr. nos of Arriving and Departing ULDs must be recorded on the loading
           sheet. All ULDs at the Terminal must be placed secured at designated
           place and any excess number should be shifted to Cargo Handling
           Agent’s warehouse.
-         Baggage cans must be released from baggage room by D-45 mts
-         Loading on aircraft to be complete and holds closed by D-10 mts
-         Pushback and Tow bar must be positioned on aircraft by D-15 mts
-         Wing walkers must follow the pushback and must be available for giving
          final ‘move out’ signal with Marshalling Torch.
-         Ramp Supervisor must ensure availability of Aerobridge operator A-15mts
          and D-15 mts.
-         Departing baggage should be loaded destination wise as per given plan and
          mix can loading not to exceed ONE can per flight unless agreed by AI in
          certain situations.
                                                                         Page 7 of 46
                                                         Tender No.GH/Comp/MEL/067

                           AIR INDIA LIMITED
       TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

-   Handling Agent will submit for each flight 1) Baggage Room Report-
    containing the list of names with timings of the staff allocated in the
    Arrival and Departure baggage rooms and report of any deviation in
    loading of baggage and 2) Ramp Handling Report- giving names and
    timings of staff allocated on ramp along with Can numbers on offloading
    and loading plan, duly signed by ramp supervisor.
-   F/J class baggage if loaded in any other can for some reason must be
    reported on loading sheet.
-   Baggage Room Supervisor will ensure handing over baggs received after
    closing of flight, for safe custody with baggage services.
-   This document will form a part of GHA and will be mandatory for
    Handling Agent for compliance.
-   The Handling Agent will submit a weekly ULD Inventory Report and
    Monthly performance report in desired format.
-   The Cargo offloaded from Arrival flight will be transported to Cargo
    warehouse while the Postal Mail will be offloaded from the aircraft and
    delivered to the postal authorities.
-   Only staff whose background check is done should be deployed for
    handling flights and should be in proper uniforms.
-   In case of in-plane loading system not working, sufficient staff to be
    deployed to carry out unloading/loading activity manually.
-   Utmost priority to be given for delivery of First / Executive class baggage.
    Hence immediately on arrival, both the priority containers to be offloaded
    and taken to the arrival. In case of the message about first / Executive class
    baggage loaded in bulk same should be immediately offloaded and taken
    to arrival. The sufficient number of manual Loaders/Porters to be allocated
    for offloading of baggage in time.
-   Exclusive supervision to be provided in the baggage make up, interline and
    baggage arrival ensuring adequate staff provided to meet the requirement.
    The supervisors should liaise with various concerned agencies including
    security for smooth handling and to attend any discrepancies.
-   All staff to be permanent staff of Handling Agency and to be in proper
    uniform.
-   Trained staff with proper authorization for driving/operating flight
    handling equipment.




                                                                    Page 8 of 46
                                                               Tender No.GH/Comp/MEL/067

                                  AIR INDIA LIMITED
              TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)




3         CABIN CLEANING

3.1       MANPOWER AND EQUIPMENT REQUIREMENT

          01 Supervisor and minimum 12 cleaners upto a maximum of 16 cleaners, 02
          Vacuum Cleaners, other approved cleaning equipments and materials in
          sufficient Quantities.

          - Storage space – Suitable space on request basis to maintain 3 months
          requirement of Cabin service items, viz. blankets, head rest covers, pillow
          cases, trolley covers, damask napkins, trash compactor, head-sets, air
          sickness bags, toiletry items, paper napkins, toilet rolls.
          - Handling Agent should submit a monthly stock statement of cabin
          service items and arrange recoupment of stocks through Airport Manager,
          MEL.

3.2 PROCEDURES AND SERVICE LEVELS

      -    Complete Cleaning of Flight Deck/Cabin, thorough cleaning of the Toilets,
           galleys and then grooming of Cabin with change of Head rest and Pillow
           covers and replenishment of cabin service/toilet items, must be done on
           every flight as standard practice.
      -    Cleaners must be available ready for entering aircraft as soon as passenger
           deplaning is complete.
      -    All staff entering and exiting aircraft will be subjected to security check.
      -    Complete cleaning must be performed within 30 minutes without
           any compromise in service.
      -    In case delayed arrival, the ground time will of the flight will stand
           reduced to 01Hr 30Mts and the Handling Agent should supplement
           manpower to achieve desired cleaning standard within available time.
      -    Supervisor will submit Cabin Cleaning Report for every flight, giving
           names of staff allocated, the timings of starting and finishing of cleaning
           job and obtain signature of In-flight Supervisor/Cabin in-charge/AI Officer
           for satisfactory service.
      -    Arrangement for taking away and suitable disposal of cabin garbage
           should be made.

      DETAILS: TURNAROUND CLEANING

      FLIGHT DECK SERVICING -
      - Work to be carried out under the supervision of authorized personnel.
      - Disposing off litter
      - Clearing waste from seat back stowage and racks
      - Wiping crew tray tables
      - Cleaning and tidying seats

                                                                          Page 9 of 46
                                                     Tender No.GH/Comp/MEL/067

                          AIR INDIA LIMITED
      TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

-   Mopping floor
-   Cleaning flight deck windows on inside as requested
-   Making of crew berths with change of linen

CABIN SERVICING –
- Disposing off litter
- Clearing waste from seat back stowage and overhead stowage.
- Replenish relevant seat pocket items as instructed
- Wiping tray tables
- Cleaning and tidying seats, arrange seat belts and passenger service units
- Clean floor (carpets and surrounds)
- Clean telephone/ LCD Screens, any other equipment as per instructions
- Wipe surfaces in pantries, galleys (sinks and working surfaces)
- Wipe surfaces in toilets (was basins/ bowls/ seats/ mirror and surrounds)
  and replenish toilet items as instructed
- Remove as necessary, any contamination caused by airsickness, spilled
  food or drink and offensive stains
- Empty all refuse bins/ trash compactors, replenish with new liners, boxes
- Clean and tidy pantry, galley fixtures
- Clean floor and floor covers extensively with vacuum cleaners
- Replenish – used blankets with fresh ones, soiled duvet cover, head rest
  covers, pillow covers – as per instructions.
- Distribute newspapers/ magazines, etc. as per instructions.



One staff to be retained to facilitate last-minute requirement, till the
aerobridge/ step ladder is removed.

DETAILS: TRANSIT CLEANING:

FLIGHT DECK SERVICING -
- Work to be carried out under the supervision of authorized personnel.
- Disposing off litter
- Clearing waste from seat back stowage and racks
- Wiping crew tray tables
- Cleaning and tidying seats
- Mopping floor
- Cleaning flight deck windows on inside as requested
- Making of crew berths with change of linen

CABIN SERVICING –
- Disposing off litter
- Clearing waste from unoccupied seat back stowage and overhead stowage.
- Replenish relevant seat pocket items as instructed
- Wiping tray tables
- Cleaning and tidying unoccupied seats, arrange seat belts and passenger
  service units
                                                               Page 10 of 46
                                                           Tender No.GH/Comp/MEL/067

                              AIR INDIA LIMITED
          TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

  -     Clean floor (carpets and surrounds) with vacuum cleaners
  -     Wipe surfaces in pantries, galleys (sinks and working surfaces)
  -     Wipe surfaces in toilets (wash basins/ bowls/ seats/ mirror and surrounds)
  -     Remove as necessary, any contamination caused by airsickness, spilled
        food or drink and offensive stains
  -     Empty all refuse bins/ trash compactors, replenish with new liners, boxes
  -     Replenish head rest covers/ pillow cases from unoccupied seats.
  -     Fold blankets

  One staff to be retained to facilitate last-minute requirement, till the
  aerobridge/ step ladder is removed.

4. CARGO
  4.1    After off-loading of the aircraft the inbound cargo pallet and containers
         to be taken to AI Cargo warehouse not later than 60 minutes of arrival.
         The departure cargo should be picked up from the Cargo warehouse and
         positioned under the aircraft for loading at least 2 hrs before departure.
  4.2    Postal Mail will be offloaded from the aircraft and delivered to the postal
         authorities and record maintained for the delivery.
  4.3     All cargo movement from/to aircraft and ramp must be under security
         escort and cargo should not be left unattended at any time.
  4.4    The Handling Agent will ensure that all Government formalities like
         CASA/ASOB, Customs, Health, Safety, Labour etc. and other
         mandatory requirements are complied with.
  4.5    Dangerous Goods will be accepted by Handling Agent's trained
         personnel in accordance with the latest edition of IATA DGR and
         Carrier's special instructions. The staff from the Handling Agency
         performing these functions should hold valid certificate, periodically
         updated (cooling period to be maintained).
  4.6    No extra charges shall be applicable for providing the services at night,
         on Saturdays, Sundays or legal holidays.

5. OPERATIONS
  5.1    The handling Agency is able to provide Operations Services at the
         Company Designated Alternates for Melbourne viz. ADL/CBR/SYD.
  5.2    The handling Agency meets the DGCA CAR requirements and has the
         approval from the Local Civil Aviation Authority.
           5.2.1 Scheduled operators engaged in international public operations
               may engage the services of approved agencies/ organisations/
               airlines outside India provided such agencies/ organisations/
               airlines have the approval from the local Civil Aviation Authority.

                                                                     Page 11 of 46
                                                        Tender No.GH/Comp/MEL/067

                           AIR INDIA LIMITED
       TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

       5.2.2 The Flight Dispatchers engaged by those agencies shall meet the
             qualification and experience requirements as contained in ICAO
             Annex 1. The Director of Operations of the Airline shall ensure
             that the services provided by these agencies are fully satisfactory
             for their operations.
       5.2.3 DGCA may inspect such flight dispatch facility to confirm that
             they have and continue to maintain the operational capability
             and manpower to provide flight dispatch services.

5.3   No airline/operator may use any person nor may any person serve as a
      flight dispatcher unless that person has been approved by the DGCA to
      act as Flight Dispatcher for the type of aircraft.
5.4   The airline/operator should ensure that all flight dispatcher undergo
      periodic refresher and other training courses as stipulated in the CAR.
5.5   DGCA may monitor the training programme and the performance of the
      Flight Dispatchers from time to time.
5.6   The detailed syllabus for Flight Dispatchers' Course given at Annexure
      'A' to the CAR (attached here as Acrobat Document), should be
      followed for training of Flight Dispatchers.




                                                                  Page 12 of 46
                                                                 Tender No.GH/Comp/MEL/067

                                     AIR INDIA LIMITED
                 TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

                                                                            Annex II-A
                       SERVICE LEVEL AGREEMENT
                           Attachment to Annex B ________

This SLA is made between the representatives of Air India Ltd (AI) (The Carrier) and
______________________________ (the Service Provider) at the location Tullamarine Airport
(MEL) concerning service delivery standards for the ground handling services contracted
between the two parties. The service delivery standards outlined below are subject to the
Carrier operating on schedule (+/- 120 minutes) and the factors being within the control of the
Service Provider. Reasonableness will be applied in the application of the standards.

      The Service Provider is aware that the delivery of service standards shall not
compromise safety procedures.

       The service elements outlined below are expected to be complied by the service
provider to the given Target Service Levels. Non compliance can result in a Penalty as
given below.
                                                  TARGET SERVICE LEVELS
    1. GENERAL

       1.1    On Time Performance                                100%
              (with permissible deviation as per AI management’s
              decision for reasons beyond the control of H/A)

   2. PASSENGER HANDLING

       2.1    Ensure deployment of manpower as specified in
              Point 1.1 of Annex –II                          98%
       2.2    Opening of Check In counters at STD minus 3Hrs 100%
       2.3    Check In discrepancies                         Not to exceed
                                                             03 Cases per month
              Error Free APIS transmissions to India          100 %
       2.4    Instances of Baggage left behind attributable
              to Handling Agent                              NIL

   3. RAMP

       3.1    Baggage delivery
              First bag within 08 mts.                            98%
              Last bag within 45 mts.                             98%
       3.2    Positioning push back tractor ETD minus15mts.       99%
       3.3    Incident involving A/C damage.                      NIL
       3.4    ULD inventory - weekly                              100%




                                                                           Page 13 of 46
                                                                   Tender No.GH/Comp/MEL/067

                                     AIR INDIA LIMITED
                 TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

  4.    CABIN CLEANING

        4.1    Cabin Cleaners to be ready to commence as
               soon as pax deplaning is complete                    97%
        4.2    Complete the cabin cleaning functions
               within 30 minutes of commencement                    97%
        4.3    Discrepancies in quality of cabin cleaning           Not more than
                                                                    01 Case per month

   5.   OPERATIONS- Flight despatch services                        100%

   6.   PENALTY CLAUSE.

         6.1   Delays attributed to Handling Agent beyond norms-
               Upto 10 mts beyond acceptable
               deviation as given in 1.1 above.    10% of Handling charge for delayed flights
               From 11 to 30 mts.                   15% of Handling charge for delayed flights
               31 mts.and above                     25% of Handling charge for delayed flights
               Any Fines levied by Indian Government
               Due Deficiency in APIS               Complete Fine to be borne by GHA.

         6.2 Repeated non compliance of
               Norms pertaining to Pax, Ramp
               and Cabin cleaning will be levied
               with penalty of :                     5% of Handling charge for affected
                                                     flights for multiple service provider.
                                                     10% of Handling charge for affected
                                                     flights for single service provider.

        6.3    Service requirement -        Penalty per flight if not complied.
               Counter opening     -        03 hours before STD - AUD $ 100.

        6.4    Shortage of manpower - Deduction of payment for the short manpower
               supplied based on the applicable man hour rate.

   7. POSITIONAL REQUIREMENTS & PENALTY APPLICABLE

  A) Dedicated manpower in various areas of handling to ensure follows norms:

  Service                     Requirement                Penalty per flt if not complied

a) Wheel chocks/cones        immediately upon arrival                      AUD $ 100

b) Container/Belt loader     2 container loaders & belt
                             Loader within 1 min. of arrival               AUD $ 100

c) Baggage delivery          First baggage on belt                         AUD $ 100
                             12 mins after arrival
                                                                             Page 14 of 46
                                                                      Tender No.GH/Comp/MEL/067

                                        AIR INDIA LIMITED
                    TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

                                 Last Baggage 45 min of arrival               AUD $ 100
                                 2 Baggage handler in customs                 AUD $ 50

d) Cargo/Mail delivery           Inbound all cargo/mail delivered to
                                 Warehouse within 90 mints of chocks ON AUD $ 100
                                 Outbound- positioned 60 mint prior to STD AUD $100
e) Supervisor                    1 Supervisor each under aircraft & bag room AUD $ 100

f) Cabin cleaning                complete within 30 mints                     AUD $100

g) Delays caused by              Upto 15 mint                                 AUD $ 100
   Handling Agent                16 mints to 30 mints                         AUD $ 250
                                 31 mints to 60 mints                         AUD $ 500
                                 Above 60 mints                               AUD $ 750

h) Delayed shifting of           As per norms of Port                Penalty amount by Port
   Aircraft

i) Delayed provision of    within 20 mints of request                         AUD $ 50
   Equipment on hard stand

j) Any discrepancy not covered above                                          AUD $ 50

k) Statistics                    As per requirement                           AUD $ 50



        Signed the                                      Signed the

        At                                              At
        for and behalf of                               for and behalf of AI (Air India)
        "the Service Provider"                          "the Carrier"

        by                                              by




                                                                                Page 15 of 46
                                                              Tender No.GH/Comp/MEL/067

                                   AIR INDIA LIMITED
                TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)




                                                                       ANNEX - III


  COMPREHENSIVE HANDLING SERVICES REQUIRED BY AI AS
           PER IATA AHM 810, 2008 VERSION
Section 1:   1.1, 1.2, 1.3,
             1.4.1(b), 1.4.2, 1.4.3(a), 1.4.4(a)(b), 1.4.5, 1.4.6, 1.4.7, 1.4.8,
Section 2 : 2.1.1, 2.1.2, 2.1.3, 2.1.4, 2.1.5, 2.1.6 (a), 2.1.7 (a,b,c,e,f), 2.1.8,
            2.1.9, 2.2.1, 2.2.2, 2.2.3, 2.2.4, 2.2.5, 2.2.6, 2.2.7, 2.2.8, 2.2.9,
            2.2.10, 2.2.11(a), 2.2.12, 2.2.13, 2.2.14, 2.3.2, 2.3.3,
Section 3:   3.1, 3.2.1, 3.3.1, 3.3.2(f-safety cones), 3.3.3(on Rqst &
             Recharge) , 3.4, 3.6.1, 3.6.2, 3.6.3, 3.6.4, 3.6.5, 3.6.6, 3.6.7,
             3.6.8, 3.6.10, 3.7(on Rqst & Recharge), 3.8, 3.9.1(a), 3.9.2(b),
             3.9.3(a)(d), 3.11.1, 3.11.2, 3.11.3, 3.11.4, 3.11.5, 3.11.6, 3.11.7,
             3.12, 3.13, 3.17(as required)
Section 4 : 4.1.1, 4.1.2, 4.2.1, 4.2.2, 4.3.1, 4.3.2, 4.4.1, 4.4.2, 4.4.3, 4.4.4,
            4.4.5, 4.4.7, 4.4.8, 4.5.1, 4.5.2, 4.5.3, 4.6.1, 4.7.1, 4.8.1, 4.9.1,
            4.9.2, 4.9.3, 4.9.4, 4.9.5, 4.9.6, 4.9.7
Section 5:   5.1.3((a)4,5), 5.1.6, 5.3.1,
             5.6.1 (to the extent of ramp transfer)
             5.6.3 (to the extent of ramp transfer)
             5.7.1, 5.7.2, 5.7.3(a), 5.7.4, 5.7.5, 5.7.6, 5.7.7, 5.7.8, 5.7.9,
             5.7.10
             Note: Transfer of Cargo/Mail from Aircraft to Ware House on
             arrival & pick up Cargo/Mail from ware house for Departure
Section 6:   6.1.1, 6.2.1, 6.2.2 (a), 6.2.3, 6.3.1, 6.3.2, 6.3.3, 6.3.4, 6.3.5,
             6.4.1, 6.5.1, 6.7.1




                                                                       Page 16 of 46
                                                                    Tender No.GH/Comp/MEL/067

                                        AIR INDIA LIMITED
                   TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

                                                                              ANNEX - IV
                           HANDLING COMPANY PROFILE


1.      Please furnish following information and other relevant information pertaining to
        your Handling Company in general and your facility and capability at Tullamarine
        Airport (MEL)
        Name, Address, Contact Tel No., Fax No., e-mail address etc.


     2. Brief resume of Handling Company specifying incorporation and capabilities for
        providing various handling services to different aircraft.


     3. Experience as Handling Agent and the number of airlines handled at present.


     4. Please give brief description of resources held at MEL Airport & date since when
        providing handling services at MEL Airport.
        a) Manpower :           No of skilled personnel, unskilled workmen,
                                Supervisory, Managerial etc working with you.
        b) Assets :             Offices/other assets.
        c) Equipment :          No. of GS Equipment held in each type like
                                GPU, ASU, ACU, MDL, Push Back, Hi Loaders,
                                Transporters, Conveyors etc.
                                No. of simultaneous wide-bodied flights you can handle.
                                No. of flights that you will be required to handle when AI
                                (AI) flights are on ground - Please specify Day wise
                                position.
        d)     Please provide following information on airlines presently handled by you:
                  i.     Name of Airlines
                 ii.     Services provided
                iii.     Type of Aircraft
                 iv.     Frequency
     5. Handling company's approx. financial turnover annually - by way of providing
        ground handling service at MEL Airport, Melbourne.


                                                                              Page 17 of 46
                                                                     Tender No.GH/Comp/MEL/067

                                        AIR INDIA LIMITED
                    TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

      6. Please confirm that you will be in a position to handle AI flights in AI (AI 's) own
         computerized DCS through CUTE. Necessary training will be provided by AI.

      7. Necessary Carrier specific Training including Load & Trim, Carriers DCS, etc. as
         decided by the Carrier will be provided for which no reimbursement will be made
         to the Handling Agent by the Carrier for Deputing their staff to undergo the same.
         Please confirm whether the same is acceptable to you.

      8. Contact person with address and Tel/Fax nos – for dealing with this tender and
         A brief resume of person, AI will be dealing on day to day working if the contract
         is awarded to you.

      9. Whether your company is approved/licensed handling agency by the Competent
         Authority for services offered by you at MEL, where AI operates. If yes, please
         give details.

      10. Please confirm that you comply with all requirements under
          IATA/OCAI/FAA/local laws/rules related with safety, Labour, Airports Authority
          and any other applicable regulations

      11. GHA will be executed in the form of Annex B simplified version of IATA SGHA,
          January 2008. Service Standard, Resources required & procedures noted on
          Annex II and Service Level agreement including penalty clause as enumerated in
          Annex IIA will be attachment to the Annex B. Please confirm whether the same is
          acceptable to you.

      12. Liability and Indemnity and Standard Termination clause as per article 8 and 11 of
          IATA SGHA January 2008 version must be acceptable to you. Please confirm.

      13. As an authorised Handling Agent, you are required to submit your offer for   the
          "The Comprehensive Handling comprising of Pax, Ramp & cabin Cleaning
          services, or "Individual/Partial Handling" for one or more component of services
          referred above under comprehensive handling. However, the Carrier reserves the
          right to decide the tender on comprehensive handling or individual/partial
          handling basis at its sole discretion.

         Please specify if you have submitted your offer for Comprehensive handling or
         Individual/Partial handling. Incase of Individual/Partial Handling, please also
         specify component of services.

14.      Please specify the Lead-Time for commencement to provide services, if           the
         contract is awarded to you.

15.      Handling Company should produce evidence of Full Time Equivalent Employees,
         periodically, as per the requirement of State Government of Victoria and
         satisfactory to the Department of Innovation.”


                                                                               Page 18 of 46
                                                                   Tender No.GH/Comp/MEL/067

                                      AIR INDIA LIMITED
                  TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

 16.    EVALUATION CRITERIA
1.      Minimum points to be obtained to qualify for the final Evaluation process is Ten
        (10).

2.     The term “Ground Handling Services” means Passenger Service, Ramp, and Flight
       Dispatch meeting all requirement of ‘IATA Standard Ground Handling
       Agreement’ Annex “A” (January 2008).

S.No. REQUIREMENT GRADING
      (in Points)
1)    Number of years in the business of providing Ground Handling services for
      Passenger and Freighter flights.
      Less than 3 years     –       0 Point.
      3 to 5 years          –       1 point
      6 to 9 years          –       2 points
      10 years & above      –       3 points

2)      Number of airports where you have Ground Handling Set up in Australia
        One airport          –      1 point
        2 to 5 airports      -      2 points
        6 to 9 airports      -      3 points

3)      Do you provide Ground Handling Services at MEL Airport? If yes please advise
        your area of operation. (Parties with no Ground Services at MEL will not be
        considered)
        Only 1 Terminal        -       1Point
        (Please specify the Terminal Number)
        Terminal 2 & Terminal 1/3 - 2 Points
        Terminal 1, 2 & 3      -       3 Points

4)      Total number of client airlines to whom you are providing Ground Handling
        services at the MEL airport. Less than 2 clients at MEL will not be considered.

        With 2 or less client   -     0 point
        03 to 05 clients        -     1 point
        06 to 10 clients        -     2 points
        11 to 15 clients        -     3 points
        More than 15 clients    -     4 points
5)      Please indicate the Maximum number of flights you have handled during 2011 at
        MEL Airport. Less than Five Hundred (500) flights annually at MEL will not be
        considered.
        < 500 Flts.             -     0 point
        500 – 1000 flts.        -     1 point
        1001 -2000 flts.        -     2 points
        2001 -3000 flts.        -     3 points
        3001 -5000 flts         -     4 points
                                                                             Page 19 of 46
                                                              Tender No.GH/Comp/MEL/067

                                   AIR INDIA LIMITED
                TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

      5001 & above         -      5 points
6)    Number of Accreditations / Certifications/Approvals for Ground Handling
      services held by you.
      One                   –     1 point
      Two                   –     2 points
      Three                 –     3 points
      Four                  –     4 points
      Five                  –     5 points
      & above
7)    The Annual Turnover for Australia operation for GH of the Company in AUD.
      Company with Turnover of less than 1.5 Million AUD will not be considered.
      (Millions)
        < 1.5             -      0 point
      1.5 to 5            -      1 point
      5 to 10             -      2 points
      Above 10            -      3 points
Response to be signed by Authorized Signatory with company Seal

17.   PLEASE DO NOT QUOTE PRICE IN RESPONSE TO THIS ANNEXURE.


                                   ---------///----------




                                                                       Page 20 of 46
                                                                     Tender No.GH/Comp/MEL/067

                                       AIR INDIA LIMITED
                  TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

                                                                                ANNEX - V
                                COMMERCIAL OFFER
Your quotation must cover following points:
1.1     Quotation for providing comprehensive or individual/partial services as per
        service requirements listed in Annex III and meeting the resources required
        /Procedures and service standards as in Annexure II.

1.2     Please note that your quotation for providing comprehensive or partial Services
        must be in the form of Annex B, simplified version of IATA January 2008 SGHA
        format containing the rates in the attached format as per ANNEX V. Service
        providers may quote for (a), (b) or (c). Those quoting for (c) must mandatorily
        quote for (a) and (b) also, otherwise the quote will be rejected.

1.3    The evaluation for selecting the Service provider will be done, taking into account
       the quotation provided for (a) or (b) or (c). The best offer for (a) and (b) each of
       which will be evaluated separately or (c) on a comprehensive basis will be
       selected. Air India Limited reserves its right to select or reject any offer due to any
       reason whatsoever at its sole discretion. Air India Limited also reserves right to
       cancel the tender procedure without assigning any reasons.

       Please submit your offer for comprehensive/partial handling in the format
given below. It is mandatory to quote (a),(b),(c),(d) for those who are quoting for
(e). Otherwise the quote will be rejected.


(A)     Comprehensive /Partial Handling Charges with component-wise break-up.

      SERVICES           A330-200             B 787-800          B777-200LR           B777-300ER
                       RATES IN AUD         RATES IN AUD        RATES IN AUD         RATES IN AUD
                         T      T/R           T      T/R          T      T/R           T      T/R
(a) Pax Handling
(b) Ramp Handling
(c ) Cabin Cleaning
(d) Flight Despatch
(e) Comprehensive
Handling covering
(a), (b) ,(c) & (d)
services

        NOTE:          T       - Transit
                       T/R     - Turnaround.


(B)     Please also furnish the list of charges for additional ground equipment rate in
        AUD per hour use.

                                                                               Page 21 of 46
                                                                   Tender No.GH/Comp/MEL/067

                                      AIR INDIA LIMITED
                TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)


(C) Deicing Fluids Charges __________ AUD per gallon.

(D)   Please submit applicable category wise man hour rates

                             Normal                  Overtime

             Agent
             Supervisor

(E)   Applicable charges, if less than 6 hours notice is given for flight cancellations.

      TERMS AND CONDITIONS:

        Please submit your response to each of the item given below.

1       Please specify, handling charge that shall be applicable for Handling
        Technical/Diversionary flight, where there will be no change of load for
        commercial purpose.

2       Please specify any conditions, limitations, restrictions, surcharges, and levies,
        royalties that may be applicable on the quoted prices.

3       Please specify, if any accounting surcharge applicable on disbursements that
        may be made by you on behalf of AI to the third parties.

4       Please specify services you intend to subcontract if any with details of
         subcontractors.

5       No additional charge to be levied to AI for handling flights during nights,
        holidays, off days or for overnight stay.

6       Please confirm that there will be no charge for flight cancellations where the
        Carrier gives more than 06 hours notice.

7       Please note, acceptance of Liability & Indemnity and Standard Termination
        clause as per article 8 and 11 of IATA SGHA 2008 version is a must & pre-
        requisite for the tender.

8       Please note that no Escalation in Handling Charges will be Acceptable in case of
        Change in Schedule of Operations.

9       Please quote for the rate chargeable for request G.S.Equipment like ACU,ASU,
        Heating, GPU, additional Pushback/aircraft shifting etc.

10      Please also quote for the Deicing services on per gallon of approved fluids
       applicable for the current season.

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                                                                   Tender No.GH/Comp/MEL/067

                                      AIR INDIA LIMITED
                 TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)


11       No Overtime will be payable if flight departure is delayed up to 120 minutes
         after schedule departure. Please specify Overtime rates per hour applicable for
         delays beyond 120 minutes of STD.

12       The payment will be made locally on a monthly basis within 30 days from the
         date of receipt of invoice.

13       Please quote for a 3 year contract and specify if rates applicable will be firm for
         year 2 and year 3 of contract.

14       Please specify frequency discount available if frequency increases to more than
         07 per week.

15       Please specify Lead Time for commencement of services if the contract is
         awarded to you.

16     The following Para to be included in the GHA, which is mandatory.

"It is expressly understood and agreed by and between (the corporation) and Air
India Ltd. (the Indian PSU) that Air India Ltd. (the Indian PSU) is entering into this
agreement solely on its own behalf and not on behalf of any other person or entity.
In particular it is expressly understood and agreed that the Government of India is
not a party to this agreement and has no liabilities, obligations or rights hereunder.
It is expressly understood and agreed that Air India Ltd. (Indian PSU) is an
independent legal entity with power and authority to enter into contracts solely in its
own behalf under the applicable laws of India and general principles of Contract
Law. The (Corporation) expressly agrees, acknowledges and understands that Air
India Ltd. (the Indian PSU) is not an agent, representative or delegate of the
Government of India. It is further understood and agreed that the Government of
India is not and shall not be liable for any acts, omissions, commissions, breaches or
other wrongs arising out of the contract.

Accordingly, (Corporation) hereby expressly waives, releases and forgoes any and
all actions or claims, including cross claims, impleader claims or counter claims
against the Government of India arising out of this contract and covenants not to
suit the Government of India as to any manner, claim, cause of action or things
whatsoever arising of or under this agreement.”

17.    AI is committed to fostering the most ethical and corruption free business
       environment. AI values its relationships with all Counterparts and deals with them
       in a fair and transparent manner.

       AI is implementing the Integrity Pact Program in cooperation with Central
       Vigilance Commission (CVC) in respect of all contracts of the value of Rs.10
       crores and above. The Vendors would sign the Pact and submit it alongwith the
       financial and technical bids. The Integrity Pact Program is attached as Annex-VI.

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                                                             Tender No.GH/Comp/MEL/067

                                  AIR INDIA LIMITED
               TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)


18.   Please confirm whether above is acceptable to you and you agree to include the
      same in the GHA to be executed. This is our mandatory legal requirement.
      Therefore, it forms the part of the GHA.




                                                              (Authorized Signatory)
                                                               With Company Seal




                                                                       Page 24 of 46
                                                                 Tender No.GH/Comp/MEL/067

                                     AIR INDIA LIMITED
                 TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)


                                                                           Annex-VI


INTEGRITY PACT PROGRAM

I.   INTRODUCTION

       Air India is a premier Public Sector airline (formed with the merger of the
       erstwhile Air-India and Indian Airlines) engaged in air transportation of
       passengers and cargo in India and abroad. The brand name of the Company
       is AIR-INDIA and it conducts its business by benchmarking itself to the
       highest ethical standards, and adopting the best practices followed by the
       industry.

       It does business with a number of domestic and international Bidders,
       Contractors and Vendors of goods and services (Counterparties). AI is
       committed to fostering the most ethical and corruption free business
       environment. AI values its relationships with all Counterparts and deals with
       them in a fair and transparent manner.

       In order to achieve these goals, AI is implementing the Integrity Pact Program
       in cooperation with Central Vigilance Commission (CVC) in respect of all
       contracts of the value of Rs.10 crores and above. As a part of this initiative, AI
       will, in consultation with CVC, appoint external Independent Monitors who will
       help AI in implementing the Integrity Pact Program. The Integrity Pact would
       be signed by the Principal and the Vendor at the pre-tendering stage itself,
       and will form part of the Tender document. A pre-signed Integrity Pact by the
       Principal would form part of the Tender document. The Vendors would sign
       the Pact and submit it alongwith the financial and technical bids.

       The ingredients of AI’s Integrity Pact Program are broadly based on :-



       -      Commitments and Obligation of AI and its employees
       -      Commitments and Obligation of Counterparties
       -      Violation and Consequences
       -      Independent Monitor
       -      Implementation Guidelines
       -      Role of Independent Monitors.

II. COMMITMENTS AND OBLIGATION OF AI

       a. AI is committed to have the most ethical and corruption- free business
          dealings with its Counterparties.

       b. AI values its relationship with all Counterparties and will deal with them in
          a fair and transparent manner.




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                                    AIR INDIA LIMITED
                  TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

     c. AI and/or its Associates (employees, agents, consultants, advisors, etc.)
        will not seek or take bribes / undue benefit directly or indirectly for
        themselves or for third parties.

     d. In a competitive tender as well as in general procurement, AI will deal
        with all Counterparties with equity, reason and fairness.

     e. AI will exclude all Associates who may be prejudiced or have a Conflict of
        Interest in dealings with Counterparties.

     f.    AI will honour its commitments and make due payments to Counterparties
          in a timely manner.

     g. AI will initiate action and pursue it vigorously whenever corruption or
        unethical behaviour occurs.

III. COMMITMENTS AND OBLIGATIONS OF THE ‘COUNTER-PARTY’

     a. The Counterparty, directly or indirectly (through Agent, consultant,
        advisor, etc.), will not pay any bribes or give illegal benefit to any one to
        gain undue advantage in dealing with the Principal, AI.

     b. The Counterparty will not engage in collusion, Price-Fixing, etc. with other
        Counterparties in dealing with the Principal, AI.

     c. The Counterparty will not pass on to any third party any of the Principal’s
        confidential information unless authorized by the organization.

     d. The Counterparty will promote and observe best ethical practices within its
        organization.

     e. The Counterparty will inform the Independent Monitor:

             i.   If it receives demand for a bribe or illegal payment/benefit and

             ii. If it comes to know of any unethical or illegal practice in the
                 Principal’s organization (AI)

             iii. If it makes any payment to any of AI’s Associates.

     f.   The Counterparty will not make any false or misleading allegations against
          AI or its Associates.




IV. VIOLATIONS & CONSEQUENCES

     a. If a Counterparty commits a violation of its Commitments and Obligations
        under the Integrity Pact Program during the bidding process, it shall be
        liable to compensate AI by way of Liquidated damages amounting to a sum
        equivalent to 3% of the value of the offer or the amount equivalent to
        Earnest Money Deposit/Bid Security, whichever is higher or an amount
        determined by the Independent Monitor.

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                                   AIR INDIA LIMITED
                TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)




     b. Incase of violation of the Integrity Pact whereby after award of the
        Contract the Principal (AI) terminates or is entitled to terminate the
        Contract, AI shall be entitled to demand and recover from the Contractor
        liquidated damages equivalent to 5% of the contract value or the amount
        equivalent to Security Deposit/Performance Bank Guarantee, whichever is
        higher or an amount determined by the Independent Monitor.

     c. AI may ban and exclude the Counterparty from future dealings until the
        Independent Monitor is satisfied that the Counterparty will not commit any
        future violation.

     d. AI may initiate criminal proceedings against the violating Counterparty,
        depending on the gravity of the violation.

     e. In case there is a violation of the Integrity Pact by the Principal (AI) or its
        Associates (i.e. employees, agents, consultants, advisors, etc.), AI
        undertakes to take appropriate action against them.

     f.    If the complaint made by a counter-party is found to be frivolous or
          mischievous, action in the form of certain sanctions would be taken against
          the said complainant.


V. INDEPENDENT MONITOR

1.   Chairman & MD, AI, is the authority to appoint Independent Monitor(s) to
     oversee the implementation and effectiveness of the Integrity Pact Program.
     The process for their appointment shall be similar to Outside Expert
     Committee (OEC). For this purpose, a panel of Independent Monitors may be
     constituted by AI and the same may be referred to CVC for clearance.

2.   The Independent Monitor will be a person of Impeccable Integrity,
     Knowledgeable of AI’s business and experienced in commercial activities.

3.   It will be a voluntary, non-salaried position of 3 years terms. Independent
     Monitor will have stature /benefits similar to those of Chairman of the Audit
     Committee of Board/status of the Directors of AI. The remuneration and
     perquisites would be similar to the remuneration/perks of independent
     Directors on the Board of AI.

4.   The main objective of the Independent Monitor will be to oversee the
     implementation of the Integrity Pact Program, to prevent corruption, or any
     other unethical practices in the implementation of the contract.

5.   The Independent Monitor will not have administrative or enforcement
     responsibilities. He will coordinate his efforts through the CVO or other anti-
     corruption institutions such as CVC. (He may engage services of outside
     agencies such as accounting firms, law firms, etc at AI’s expense, if required,
     in discharge of his responsibilities after obtaining the approval of the
     Chairman & M.D.)



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                                    AIR INDIA LIMITED
                 TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

6.     The Independent Monitor will have access to all offices and internal records of
       the Principal in respect of the Tender in question. He will also have access to
       Counterparties’ records and information regarding its dealing with the
       Principal.

7.     The Independent Monitor will have the right to attend any meetings between
       the Principal and the Counterparties. As far as possible, the meetings should
       be scheduled in India. In respect of any meeting to be held outside India,
       attendance by the Independent Monitor would be decided in consultation with
       the Chairman & M.D., AI.

8.     If the Independent Monitor observes or suspects an irregularity, he will inform
       the Chairman of AI. Once the Independent Monitor is satisfied that any
       irregularity has taken place, he may also inform the CVO and CVC.


VI. IMPLEMENTATION GUIDELINES

To implement the Integrity Pact Program, the following general Guidelines are
suggested:

       a. To select and appoint a Panel of Independent Monitors in consultation with
          the CVC.

       b. To get commitment from all Senior Level executives/officials of AI to
          implement the program. It should be recognized that there may be
          resistance to Integrity Pact program.

       c. To develop detailed implementations plans and finalize the Integrity Pact
          document in consultation with the Independent Monitors.

       d. To notify all senior staff members, Board of Directors, any other over-sight
          body of the Organization and major suppliers of AI’s plans to implement
          Integrity Pact program, which is to be Included in AI’s web site and also
          disclose this initiative to the media.


VII.   PERIODIC REVIEW & EVALUATION

       It is recommended that the Board of Directors of AI periodically review the

effectiveness of Integrity Pact Program by all or some of the following measures:-



1.     The Independent Monitors and senior leadership of AI do an annual self-
       assessment of Integrity Pact Program effectiveness and identify areas / ways
       to improve the same.

2.     The Independent Monitor will submit an annual report on the progress /
       effectiveness of Integrity Pact Program to the Board of Directors of AI.

3.     AI may conduct an annual 360-degree review (through an outside agency, if
       required) with senior executives, junior executives, suppliers, and
       competitors, regarding the effectiveness of the Integrity Pact Program in

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              TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

     reducing corruption. Feed-back may be taken from the junior and senior
     executives of the Principal, suppliers and competitors.

4.   AI should meet with CVC on an annual basis to review the effectiveness of the
     program.




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                                                                 Tender No.GH/Comp/MEL/067

                                     AIR INDIA LIMITED
                 TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)


                                  INTEGRITY PACT


                                         Between
Air India hereinafter referred to as “The Principal”,

                                            and

                             hereinafter referred to as “The Bidder/ Contractor”


                                      PREAMBLE


The Principal intends to award, under laid down organizational procedures, contract(s)
for                                  .The Principal values full compliance with all relevant
laws of the land, rules, regulations, economic use of resources and of
fairness/transparency in its relations with its Bidder(s) and/or Contractor(s).

In order to achieve these goals, the Principal will appoint an Independent External
Monitor (IEM), who will monitor the tender process and the execution of the contract for
compliance with the principles mentioned above.

Section 1     – Commitments of the Principal

1. The Principal commits itself to take all measures necessary to prevent corruption
   and to observe the following principles:-

       a. No employee of the Principal, personally or through family members, will in
          connection with the tender for, or the execution of a contract, demand,
          take a promise for or accept, for self or third person, any material or
          immaterial benefit which the person is not legally entitled to. The word
          ‘take’ shall also include the past and future.

       b. The Principal will, during the tender process treat all Bidder(s) with equity
          and reason. The Principal will in particular, before and during the tender
          process, provide to all Bidder(s) the same information and will not provide
          to any Bidder(s) confidential/additional information through which the
          Bidder(s) could obtain an advantage in relation to the tender process or the
          contract execution.

       c. The Principal will exclude from the process all known prejudiced persons
          and persons who would be known to have a connection or nexus with the
          prospective bidder.

2. If the Principal obtains information on the conduct of any of its employees which
   is a criminal offence under the IPC/PC Act or the conduct rules of the Principal, or
   if there be a substantive suspicion in this regard, the Principal will inform the
   Chief Vigilance Officer and in addition can initiate disciplinary actions.

Section 2     – Commitments of the Bidder(s)/ contractor(s)

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                 TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)


1. The Bidder(s)/ Contractor(s) commit themselves to take all measures necessary
   to prevent corruption in their dealings with AI. He commits himself to observe the
   following principles during his participation in the tender process and during the
   contract execution.

    a. The Bidder(s)/ Contractor(s) will not, directly or through any other person or
       firm, offer, promise or give to any of the Principal’s employees involved in the
       tender process or the execution of the contract or to any third person any
       material or other benefit which he/she is not legally entitled to, in order to
       obtain in exchange any advantage of any kind whatsoever during the tender
       process or during the execution of the contract.

    b. The Bidder(s)/Contractor(s) will not enter with           other Bidders into any
       undisclosed agreement or understanding, whether           formal or informal. This
       applies in particular to prices, specifications,         certifications, subsidiary
       contracts, submission or non-submission of bids          or any other actions to
       restrict competitiveness or to introduce cartelisation   in the bidding process.

    c. The Bidder(s)/Contractor(s) will not commit any offence under the relevant
       IPC/PC Act; further the Bidder(s)/ Contractor(s) will not use improperly, for
       purposes of competition or personal gain, or pass on to others, any
       information or document provided by the Principal as part of the business
       relationship, regarding plans, technical proposals and business details,
       including information contained or transmitted electronically.

    d. The Bidder(s)/Contractors(s) of foreign origin shall disclose the name and
       address of the Agents/representatives in India, if any. Similarly the
       Bidder(s)/Contractors(s) of Indian Nationality shall furnish the name and
       address of the foreign principals, if any. Further details as mentioned in the
       “Guidelines on Indian Agents of Foreign Suppliers” shall be disclosed by the
       Bidder(s)/Contractor(s).Further, as mentioned in the Guidelines all the
       payments made to the Indian agent/representative have to be in Indian
       Rupees only. Copy of the “Guidelines on Indian Agents of Foreign Suppliers”
       is placed at (Page nos. 6-7)

    e. The Bidder(s)/Contractor(s) will, when presenting his bid, disclose any and all
       payments he has made, is committed to or intends to make to agents,
       brokers or any other intermediaries in connection with the award of the
       contract.

    f. This integrity pact shall override the confidentiality clause, if any, in the offer
       submitted by the Contractor/Bidder and in the agreement entered into by the
       Principal with the Contractor/Bidder.

2. The Bidder(s)/Contractor(s) will not instigate third persons to commit offences or
   acts outlined above or be an accessory to such offences.

Section 3   - Disqualification from tender process and exclusion from future
            contracts

     If the Bidder(s)/Contractor(s), before award or during execution has
     committed a transgression through a violation of Section 2, above or in any
     other form such as to put his reliability or credibility in question, the Principal is

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                 TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

      entitled to disqualify the Bidder(s)/Contractor(s) from the tender process or
      take action as per the procedure mentioned in the “Guidelines on Banning of
      business dealings”. Copy of the “Guidelines on Banning of business dealings” is
      placed at Page nos. 8-16.


Section 4     – Compensation for Damages

1. If the Principal has disqualified the Bidder(s) from the tender process prior to the
   award according to Section 3, the Principal is entitled to demand and recover the
   damages equivalent to Earnest Money Deposit/Bid Security and other actual
   damages due to the consequential delay.

2. If the Principal has terminated the contract according to Section 3, or if the
   Principal is entitled to terminate the contract according to Section 3, the Principal
   shall be entitled to demand and recover from the Contractor liquidated damages
   of the Contract value or the amount equivalent to Performance Bank Guarantee.

3. The Contractor/Bidder shall not be entitled to claim from the Principal any
   amounts either as damages or otherwise, on account of termination.

Section 5     – Previous transgression

1. The Bidder declares that no previous transgressions occurred in the last 3 years
   with any other Company in any country conforming to the corruption approach or
   with any other Public Sector Enterprise in India that could justify his exclusion
   from the tender process.

2. If the Bidder makes incorrect statement on this subject, he can be disqualified
   from the tender process or action can be taken as per the procedure mentioned
   in “Guidelines on Banning of business dealings”.

Section 6     – Equal treatment of all Bidders/Contractors/Subcontractors

1. The Bidder(s)/ Contractor(s) undertake(s) to demand from all subcontractors a
   commitment in conformity with this Integrity Pact, and to submit it to the Principal
   before contract signing.

2. The Principal will enter into agreements with identical conditions as this one with
   all Bidders, Contractors and Subcontractors.

3. The Principal will disqualify from the tender process all bidders who do not sign
   this Pact or violate its provisions.

Section 7     –Criminal charges against violating Bidder(s)/Contractor(s)/
              Subcontractor(s)

If the Principal obtains knowledge of conduct of a Bidder, Contractor or
Subcontractor, or of an employee or a representative or an associate of a Bidder,
Contractor or Subcontractor which constitutes corruption, or if the Principal has
substantive suspicion in this regard, the Principal will inform the same to the Chief
Vigilance Officer.

Section 8     – Independent External Monitor/Monitors

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             TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)


1. The Principal appoints competent and credible Independent External Monitor
   for this Pact. The task of the Monitor is to review independently and
   objectively, whether and to what extent the parties comply with the
   obligations under this agreement.

2. The Monitor is not subject to instructions by the representatives of the parties
   and performs his functions neutrally and independently. He shall report to the
   Chairman, AI.

3. The Bidder(s)/Contractor(s) accepts that the Monitor has the right to access
   without restriction to all Project documentation of the Principal including that
   provided by the Contractor. The Contractor will also grant the Monitor, upon
   his request and demonstration of a valid interest, unrestricted and
   unconditional access to his project documentation. The same is applicable to
   Subcontractors. The Monitor is under contractual obligation to treat the
   information and documents of the Bidder(s)/ Contractor(s)/ Subcontractor(s)
   with confidentiality.

4. The Principal will provide to the Monitor sufficient information about all
   meetings among the parties related to the Project provided such meetings
   could have an impact on the contractual relations between the Principal and
   the Contractor. The parties offer to the Monitor the option to participate in
   such meetings.

5. As soon as the Monitor notices, or believes to notice, a violation of this
   agreement, he will so inform the Management of the Principal and request the
   Management to discontinue or take corrective action, or to take other relevant
   action. The monitor can in this regard submit non-binding recommendations.
   Beyond this, the Monitor has no right to demand from the parties that they
   act in a specific manner, refrain from action or tolerate action.

6. The Monitor will submit a written report to the Chairman, AI within 8 to 10
   weeks from the date of reference or intimation to him by the Principal and,
   should the occasion arise, submit proposals for correcting problematic
   situations.

7. Monitor shall be entitled to compensation on the same terms as being
   extended to / provided to Independent Directors on the AI Board.

8. If the Monitor has reported to the Chairman AI, a substantiated suspicion of
   an offence under relevant IPC/ PC Act, and the Chairman AI has not, within
   the reasonable time taken visible action to proceed against such offence or
   reported it to the Chief Vigilance Officer, the Monitor may also transmit this
   information directly to the Central Vigilance Commissioner.

9. The word ‘Monitor’ would include both singular and plural.




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TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)




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                 TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)




      GUIDELINES FOR INDIAN AGENTS OF FOREIGN SUPPLIERS


1.0    There shall be compulsory registration of agents for all Global (Open) Tender
       and Limited Tender. An agent who is not registered with AI
       Departments/Stations shall apply for registration in the prescribed Application
       –Form.

1.1    Registered agents will file an authenticated Photostat copy duly attested by a
       Notary Public/Original certificate of the principal confirming the agency
       agreement and giving the status being enjoyed by the agent and the
       commission/remuneration/salary/ retainer ship being paid by the principal to
       the agent before the placement of order by AI Departments/Stations.

1.2     Wherever the Indian representatives have communicated on behalf of their
       principals and the foreign parties have stated that they are not paying any
       commission to the Indian agents, and the Indian representative is working
       on the basis of salary or as retainer, a written declaration to this effect should
       be submitted by the party (i.e. Principal) before finalizing the order


2.0    DISCLOSURE OF PARTICULARS OF AGENTS/ REPRESENTATIVES IN
       INDIA. IF ANY.


2.1    Tenderers of Foreign nationality shall furnish the following details in their
       offer:

2.1.1 The name and address of the agents/representatives in India, if any and the
      extent of authorization and authority given to commit the Principals. In case
      the agent/representative be a foreign Company, it shall be confirmed whether
      it is real substantial Company and details of the same shall be furnished.

2.1.2 The amount of commission/remuneration included in the quoted price(s) for
      such agents/representatives in India.

2.1.3 Confirmation of the Tenderer that the commission/ remuneration if any,
      payable to his agents/representatives in India, may be paid by AI in Indian
      Rupees only.

2.2    Tenderers of Indian Nationality shall furnish the following details in their
       offers:

2.2.1 The name and address of the foreign principals indicating their nationality as
      well as their status, i.e, whether manufacturer or agents of manufacturer
      holding the Letter of Authority of the Principal specifically authorizing the
      agent to make an offer in India in response to tender either directly or
      through the agents/representatives.

2.2.2 The amount of commission/remuneration included in the price (s) quoted by
      the Tenderer for himself.


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                 TENDER FOR COMPREHENSIVE HANDLING AT MELBOURNE (MEL)

2.2.3 Confirmation of the foreign principals of the Tenderer that the
      commission/remuneration, if any, reserved for the Tenderer in the quoted
      price (s), may be paid by AI in India in equivalent Indian Rupees on
      satisfactory completion of the Project or supplies of Stores and Spares in case
      of operation items .

2.3    In either case, in the event of contract materializing, the terms of payment
       will provide for payment of the commission /remuneration, if any payable to
       the agents/representatives in India in Indian Rupees on expiry of 90 days
       after the discharge of the obligations under the contract.

2.4    Failure to furnish correct and detailed information as called for in paragraph-
       2.0 above will render the concerned tender liable to rejection or in the event
       of a contract materializing, the same liable to termination by AI. Besides this
       there would be a penalty of banning business dealings with AI or damage or
       payment of a named sum.




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           NATIONAL AVIATION COMPANY OF INDIA LTD.

                                             Tender No.GH/COMP/MEL/040

TENDER FOR PAX, RAMP HANDLING & CABIN CLEANING AT MEL (MELBOURNE)
          GUIDELINES ON BANNING OF BUSINESS DEALINGS

                              CONTENTS


S.No.   Description                                                 Page(s)


1.      Introduction                                                9


2.      Scope                                                       9


3.      Definitions                                                 10


4.      Initiation of Banning / Suspension                          11


5.      Suspension of Business Dealings                             11-12


6.      Ground on which Banning of Business Dealing can be          12-13
        initiated


7.      Banning of Business Dealings                                13-14


8.      Removal     from    List     of      Approved   Agencies-   14-15
        Suppliers/Contractors etc.


9.      Procedure for issuing Show-cause Notice                     15


10.     Appeal against the Decision of the Competent Authority      15


11.     Review of the Decision by the Competent Authority           15


12.     Circulation of the names of Agencies with whom Business     16
        Dealings have been banned




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                                                Tender No.GH/COMP/MEL/040

TENDER FOR PAX, RAMP HANDLING & CABIN CLEANING AT MEL (MELBOURNE)




1.   Introduction

     1.1     Air India being a Public Sector Enterprise and ‘State’, within the
             meaning of Article 12 of the Constitution of India, has to ensure
             preservation of rights enshrined in Chapter III of the Constitution.
             AI has also to safeguard its commercial interests. AI deals with
             Agencies, who have a very high degree of integrity, commitments
             and sincerity towards the work undertaken. It is not in the interest
             of AI to deal with Agencies who commit deception, fraud or exercise
             of coercion or undue influence or other misconduct in the execution
             of contracts awarded / orders issued to them. In order to ensure
             compliance with the constitutional mandate, it is incumbent on AI to
             observe principles of natural justice before banning the business
             dealings with any Agency.

     1.2     Since banning of business dealings involves civil consequences for
             an Agency concerned, it is incumbent that adequate opportunity of
             hearing is provided and the explanation, if tendered, is considered
             before passing any order in this regard keeping in view the facts
             and circumstances of the case.

2.   Scope

     2.1     The General Conditions of Contract (GCC) of AI generally provide
             that AI reserves its rights to remove from list of approved
             suppliers/contractors or to ban business dealings if any Agency has
             been found to have committed misconduct, violation of any law or
             any term of the agreement and also to suspend business dealings
             pending investigation. If such provision does not exist in any GCC,
             the same may be incorporated.

     2.2     Similarly, in case of sale of material there is a clause to deal with
             the Agencies/customers/buyers, who indulge in lifting of material in
             unauthorized manner. If such a stipulation does not exist in any
             Sale Order, the same may be incorporated.

     2.3     However, absence of such a clause does not in any way restrict the
             right of Company (AI) to take action/decision under these guidelines
             in appropriate cases.

     2.4     The procedure of (i) Removal of Agency from the List of approved
             suppliers / contractors;  (ii) Suspension and   (iii) Banning of
             Business Dealing with Agencies, has been laid down in these
             guidelines.


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     2.5       These guidelines      apply   to   all   the   Departments/Stations   and
               subsidiaries of AI.

     2.6       It is clarified that these guidelines do not deal with the decision of
               the Management not to entertain any particular Agency due to its
               poor/inadequate performance or for any other reason.

     2.7       The banning shall be with prospective effect, i.e., future business
               dealings.


3.   Definitions

     In these Guidelines, unless the context otherwise requires:

     i)        ‘Party/Contractor/Supplier/Purchaser/Customer’ shall mean and
               include a public limited company or a private limited company, a
               firm whether registered or not, an individual, a cooperative society
               or an association or a group of persons engaged in any commerce,
               trade, industry, etc. ‘Party/Contractor/Supplier/Purchaser/Customer’
               in the context of these guidelines is indicated as ‘Agency’.

     ii)       ‘Inter-connected Agency’ shall mean two or more companies having
               any of the following features:

          a. If one is a subsidiary of the other.
          b. If the Director(s), Partner(s), Manager(s) or Representative(s) are
             common;
          c. If Management is common;
          d. If one owns or controls the other in any manner;

     iii)      ‘Competent Authority’ and ‘Appellate Authority’ shall mean the
               following:

          a. For Company (entire AI) Wide Banning
             The Executive Director – SBU in charge of Procurement shall be the
             ‘Competent Authority’ for the purpose of these guidelines. Chairman,
             AI shall be the ‘Appellate Authority’ in respect of such cases.

          b. In case the foreign supplier is not satisfied by the decision of the First
             Appellate Authority, it may approach AI Board as Second Appellate
             Authority.

          c. For Departments / Stations only
             Any officer not below the rank of Executive Director appointed or
             nominated by the Functional Director / SBU Head      shall be the
             ‘Appellate Authority’ in all such cases.




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TENDER FOR PAX, RAMP HANDLING & CABIN CLEANING AT MEL (MELBOURNE)


      d. For Corporate Office only
         For procurement of items / award of contracts, to meet the
         requirement of Corporate Office only, Head of CMMG shall be the
         “Competent Authority” and Director (Technical) shall be the “Appellate
         Authority”.

      e. Chairman, AI shall have overall power to take suo-moto action on any
         information available or received by him and pass such order(s) as he
         may think appropriate, including modifying the order(s) passed by any
         authority under these guidelines.

     iv)   ‘Investigating Department’ shall mean any Department or Unit
           investigating into the conduct of the Agency and shall include the
           Vigilance Department, Central Bureau of Investigation, the State
           Police or any other authority or agency set up by the Central or
           State Government having powers to investigate.

     v)    ‘List of approved Agencies - Parties/Contractors/Suppliers/
           Purchasers/Customers    shall mean  and   include   list   of
           approved/registered Agencies - Parties/Contractors/Suppliers/
           Purchasers/Customers, etc.

4.   Initiation of Banning/Suspension

     Action for banning/suspension of business dealings with any Agency should
     be initiated by the department having business dealings with them after
     noticing the irregularities or misconduct on their part. The Vigilance
     Department of AI shall have the right to recommend banning/suspension
     and this shall be binding on the Department/SBU and non-compliance of
     these recommendations/instructions shall be deemed to be a misconduct
     on the part of the Head of the Department/SBU.

5.   Suspension of Business Dealings

     5.1   If the conduct of any Agency dealing with AI is under investigation
           by any department (except Foreign Suppliers of imported
           coal/coke), the Competent Authority may consider whether the
           allegations under investigation are of a serious nature and whether
           pending investigation, it would be advisable to continue business
           dealing with the Agency. If the Competent Authority, after
           consideration of the matter including the recommendation of the
           Investigating Department, if any, decides that it would not be in the
           interest to continue business dealings pending investigation, it may
           suspend business dealings with the Agency. The order to this effect
           may indicate a brief of the charges under investigation. If it is
           decided that inter-connected Agencies would also come within the
           ambit of the order of suspension, the same should be specifically
           stated in the order. The order of suspension would operate for a
           period not more than six months and may be communicated to the

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           Agency as also to the Investigating Department. The Investigating
           Department may ensure that their investigation is completed and
           whole process of final order is over within such period.

     5.2   The order of suspension shall be communicated to all Departmental
           Heads within the Departments/Stations. During the period of
           suspension, no business dealing may be held with the Agency.

     5.3   As far as possible, the existing contract(s) with the Agency may
           continue unless the Competent Authority, having regard to the
           circumstances of the case, decides otherwise.

     5.4   If the gravity of the misconduct/violation under investigation is very
           serious and it would not be in the interest of AI, as a whole, to deal
           with such an Agency pending investigation, the Competent
           Authority may send his recommendation to Chief Vigilance Officer
           (CVO), AI Corporate Office along with the material available. If
           Corporate Office considers that depending upon the gravity of the
           misconduct/violation, it would not be desirable for all the
           Departments/Stations and Subsidiaries of AI to have any dealings
           with the Agency concerned, an order suspending business dealings
           may be issued to all the Departments/Stations by the Competent
           Authority of the Corporate Office, copy of which may be endorsed to
           the Agency concerned. Such an order would operate for a period of
           six months from the date of issue.

     5.5   For suspension of business dealings        with   Foreign   Suppliers,
           following shall be the procedure :-

               i. Suspension of the foreign suppliers shall apply through out
                  the Company including Subsidiaries.

              ii. Based on the complaint forwarded by ED-Procurement or
                  received directly by Corporate Vigilance, if gravity of the
                  misconduct under investigation is found serious and it is felt
                  that it would not be in the interest of AI to continue to deal
                  with such agency, pending investigation, Corporate Vigilance
                  may send such recommendation on the matter to Executive
                  Director-Procurement to place it before a Committee
                  consisting of the following :

                  1.     Director-Finance/Head of Corporate Finance;
                  2.     SBU Head/Department concerned;
                  3.     ED-Headquarters/Head of Corporate Office;
                  4.     GM-Legal/Head of Corporate Law.

                  The committee shall expeditiously examine the report, give
                  its comments/recommendations within twenty one days of
                  receipt of the reference by ED-Procurement.



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TENDER FOR PAX, RAMP HANDLING & CABIN CLEANING AT MEL (MELBOURNE)
              iii. The comments/recommendations of the Committee shall
                   then be placed by ED-Procurement before the Board of AI
                   and if the Board opines that it is a fit case for suspension,
                   SBU Head may pass necessary orders which shall be
                   communicated to the foreign supplier by ED-Headquarters.

     5.6   If the Agency concerned asks for detailed reasons of suspension,
           the Agency may be informed that its conduct is under investigation.
           It is not necessary to enter into correspondence or argument with
           the Agency at this stage.

     5.7   It is not necessary to give any show-cause notice or personal
           hearing to the Agency before issuing the order of suspension.
           However, if investigations are not complete in six months time, the
           Competent Authority may extend the period of suspension by
           another three months, during which period the investigations must
           be completed.

6.   Grounds on which Banning of Business Dealings can be initiated

     6.1   If the security consideration, including questions of loyalty of the
           Agency to the State, so warrants;

     6.2   If the Director/Owner of the Agency, proprietor or partner of the
           firm, is convicted by a Court of Law for offences involving moral
           turpitude in relation to its business dealings with the Government or
           any other public sector enterprises or AI, during the last five years;

     6.3   If there is strong justification for believing that the Directors,
           Proprietors, Partners, owner of the Agency have been guilty of
           malpractices such as bribery, corruption, fraud, substitution of
           tenders, interpolations, etc;

     6.4   If the Agency continuously refuses to return/refund the dues of AI
           without showing adequate reason and this is not due to any
           reasonable dispute which would attract proceedings in arbitration or
           Court of Law;

     6.5   If the Agency employs a public servant dismissed/removed or
           employs a person convicted for an offence involving corruption or
           abetment of such offence;

     6.6   If business dealings with the Agency have been banned by the Govt.
           or any other public sector enterprise;

     6.7   If the Agency has resorted to Corrupt, fraudulent practices,
           coercion, undue influence and other violations including
           misrepresentation of facts;




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TENDER FOR PAX, RAMP HANDLING & CABIN CLEANING AT MEL (MELBOURNE)
       6.8    If the Agency uses intimidation/threatening or brings undue outside
              pressure on the Company (AI) or its official in acceptance/
              performances of the job under the contract;

       6.9    If the Agency indulges in repeated and/or deliberate use of delay
              tactics in complying with contractual stipulations;

       6.10   Wilful indulgence by the Agency in supplying sub-standard material
              irrespective of whether pre-despatch inspection was carried out by
              Company (AI) or not;

       6.11   Based on the findings of the investigation report of
              CBI/Police/internal Vigilance or any other investigative agency
              including     Government    Audit   against    the  Agency    for
              malafide/unlawful acts or improper conduct on his part in matters
              relating to the Company (AI) or even otherwise;

       6.12   Established litigant nature of the Agency to derive undue benefit;

       6.13   Continued poor performance of the Agency in several contracts;

       6.14   If the Agency misuses the premises or facilities of the Company
              (AI), forcefully occupies tampers or damages the Company’s
              properties including land, water resources, forests / trees, etc.

              (Note: The examples given above are only illustrative and not
              exhaustive. The Competent Authority may decide to ban business
              dealing for any good and sufficient reason).

7   Banning of Business Dealings

       7.1    Normally, a decision to ban business dealings with any Agency
              should apply throughout the Company including Subsidiaries.
              However, the Competent Authority of the Department/Unit except
              Corporate Office can impose such ban unit-wise only if in the
              particular case banning of business dealings by respective
              Department/Unit will serve the purpose and achieve its objective
              and banning throughout the Company is not required in view of the
              local conditions and impact of the misconduct/default to beyond the
              Department/Unit. Any ban imposed by Corporate Office shall be
              applicable across all Departments/Stations of the Company
              including Subsidiaries.

       7.2    For Company-wide banning, the proposal should be sent by ACVO of
              the Department/Unit to the CVO through the Chief Executive of the
              Department/Unit setting out the facts of the case and the
              justification of the action proposed along with all the relevant
              papers and documents except for banning of business dealings with
              Foreign Suppliers of imported coal/coke.



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            NATIONAL AVIATION COMPANY OF INDIA LTD.

                                               Tender No.GH/COMP/MEL/040

TENDER FOR PAX, RAMP HANDLING & CABIN CLEANING AT MEL (MELBOURNE)
            The Corporate Vigilance shall process the proposal of the
            Department/Unit for a prima-facie view in the matter by the
            Competent Authority nominated for Company-wide banning.

            The CVO shall get feedback about that agency from all other
            Departments/Stations. Based on this feedback, a prima-facie
            decision for banning/or otherwise shall be taken by the Competent
            Authority.

            If the prima-facie decision for Company-wide banning has been
            taken, the Corporate Vigilance shall issue a show-cause notice to
            the agency conveying why it should not be banned throughout AI.

            After considering the reply of the Agency and other circumstances
            and facts of the case, a final decision for Company-wide banning
            shall be taken by the Competent Authority.

      7.3   There will be a Standing Committee in each Department/Unit to be
            appointed by Chief Executive for processing the cases of “Banning
            of Business Dealings” except for banning of business dealings with
            foreign suppliers of coal/coke. However, for procurement of
            items/award of contracts, to meet the requirement of Corporate
            Office only, the committee shall be consisting of Executive
            Director/General Manager from Finance, Procurement and Legal:

            i)     To study the report of the Investigating Agency and decide if
                   a prima-facie case for Company-wide/Local unit wise banning
                   exists, if not, send back the case to the Competent
                   Authority.

            ii)    To recommend for issue of show-cause notice to the Agency
                   by the concerned department.

            iii)   To examine the reply to show-cause notice and call the
                   Agency for personal hearing, if required.

            iv)    To submit final recommendation to the Competent Authority
                   for banning or otherwise.

     7.4    If the Competent Authority is prima-facie of the view that action for
            banning business dealings with the Agency is called for, a show-
            cause notice may be issued to the Agency as per paragraph 9.1 and
            an enquiry held accordingly.


8    Removal from List of Approved Agencies - Suppliers/Contractors,
     etc.

     8.1    If the Competent Authority decides that the charge against the
            Agency is of a minor nature, it may issue a show-cause notice as to


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            NATIONAL AVIATION COMPANY OF INDIA LTD.

                                               Tender No.GH/COMP/MEL/040

TENDER FOR PAX, RAMP HANDLING & CABIN CLEANING AT MEL (MELBOURNE)
            why the name of the Agency should not be removed from the list of
            approved Agencies - Suppliers/Contractors, etc.

     8.2    The effect of such an order would be that the Agency would not be
            disqualified from competing in Open Tender Enquiries.

     8.3    Past performance of the Agency may be taken into account while
            processing for approval of the Competent Authority for awarding the
            contract.

9    Show-cause Notice

     9.1    In case where the Competent Authority decides that action against
            an Agency is called for, a show-cause notice has to be issued to the
            Agency. Statement containing the imputation of misconduct or
            misbehaviour may be appended to the show-cause notice and the
            Agency should be asked to submit within 15 days a written
            statement in its defence.

     9. 2   If the Agency requests for inspection of any relevant document in
            possession of AI, necessary facility for inspection of documents may
            be provided.

     9.3    The Competent Authority may consider and pass an appropriate
            speaking order:
                  a. For exonerating the Agency if the charges are not
                     established;
                  b. For removing the Agency from the list of approved
                     Suppliers/Contactors, etc.
                  c. For banning the business dealing with the Agency.

     9.4    If it decides to ban business dealings, the period for which the ban
            would be operative may be mentioned. The order may also mention
            that the ban would extend to the interconnected Agencies of the
            Agency.

10   Appeal against the Decision of the Competent Authority

     10.1   The Agency may file an appeal against the order of the Competent
            Authority banning business dealing, etc. The appeal shall be to the
            Appellate Authority. Such an appeal shall be preferred within one
            month from the date of receipt of the order banning business
            dealing, etc.

     10.2   Appellate Authority would consider the appeal and pass appropriate
            order which shall be communicated to the Agency as well as the
            Competent Authority.




                                                                   Page 45 of 46
            NATIONAL AVIATION COMPANY OF INDIA LTD.

                                               Tender No.GH/COMP/MEL/040

TENDER FOR PAX, RAMP HANDLING & CABIN CLEANING AT MEL (MELBOURNE)


11   Review of the Decision by the Competent Authority

     Any petition/application filed by the Agency concerning the review of the
     banning order passed originally by Chief Executive/Competent Authority
     under the existing guidelines either before or after filing of appeal before
     the Appellate Authority or after disposal of appeal by the Appellate
     Authority, the review petition can be decided by the Chief
     Executive/Competent Authority upon disclosure of new facts/circumstances
     or subsequent development necessitating such review. The Competent
     Authority may refer the same petition to the Standing Committee for
     examination and recommendation.




12   Circulation of the names of Agencies with whom Business Dealings
     have been banned
     12.1   Depending upon the gravity of misconduct established, the
            Competent Authority of the Corporate Office may circulate the
            names of Agency with whom business dealings have been banned,
            to the Government Departments, other Public Sector Enterprises,
            etc. for such action as they deem appropriate.
     12.2   If Government Departments or a Public Sector Enterprise request
            for more information about the Agency with whom business
            dealings have been banned, a copy of the report of Inquiring
            Authority together with a copy of the order of the Competent
            Authority/Appellate Authority may be supplied.
     12.3   If business dealings with any Agency have been banned by the
            Central or State Government or any other Public Sector Enterprise,
            AI may, without any further enquiry or investigation, issue an order
            banning business dealing with the Agency and its inter-connected
            Agencies.
     12.4   Based on the above, Departments/Stations may formulate their own
            procedure for implementation of the Guidelines.




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