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Letter of credit

 

PCDA (R&D) is also responsible for arranging payment to foreign suppliers, who enter into contract with DRDO establishments.  The most common mode of such payments is by opening of a letter of credit in favour of the foreign supplier.  The necessary documents which are required for processing cases are as listed below:

 

  1. User demand / justification for procurement (Form MM06 DRDO Purchase Management 2006)
  2. Store Procurement Committee minutes for procurements exceeding Rs. 1 Lakh
  3. CFA approval for the procurement
  4. Tender Enquiry/Notice
  5. Quotation/Bids
  6. Technical Evaluation Committee minutes
  7. Tender Purchase Committee minutes along with the Comparative Statement of Tenders
  8. Foreign Supply/Purchase order (ink signed) and its amendment if any
  9. PAC concurrence in case procurement is made on PAC basis
  10. Foreign Exchange release/sanction letter for the procurement
  11. Performance Bank Guarantee

 

Common Deficiencies in submission of documents for opening of LCs

 

  1. The requisite documents not enclosed
  2. Photocopy of the document(s) is/are attached which are required to be submitted in original
  3. The bill is either unsigned or the signature is not affixed with the official seal.
  4. Amendments in terms & conditions of the Supply order have been made without convening a review TPC
  5. Terms & conditions laid down in the Supply order have not been fulfilled.
  6. Terms & conditions laid down in the supply order are not in conformity with the TPC minutes
  7. EPC/SPC approval is not revalidated where the SO is placed after a lapse of 1 year of EPC/SPC approval.
  8. PAC concurrence has not been furnished for procurement on PAC basis.
  9. Integrated Finance concurrence has not been indicated while exercising enhanced financial powers.