Common use of Allocation Rules Clause in Contracts

Allocation Rules. After the approval of the H1 price by NAFED, the provisionally allotted quantity will be treated as ‘allotted quantity’. This shall, however be governed by the following precedence rules for allocation - a) After acceptance of the H1 price by NAFED among the service providers, system will allocate the quantity quoted by the initial H1 bidder/s. b) After the 1st round, if the total demand raised by the H1 bidder/s is less than or equal to the total quantity (Calculated by Deducting the Quantity allocated to the H1 bidder/s from the total quantity put for e-auction), then only bidders participating in 1st round of auction by service providers are eligible to participate in 2nd round (matching round) to match the H1 price for the balance quantity remaining after allocating to H1 bidder/s. c) Precedence for allotment will be accorded to the buyer who has made the second highest bid (H2) during the 1st round Auction among all the service providers combined and so on till the point the entire quantity put for auction is exhausted. d) All the quantity unsold will be transferred to the next auction to be held on the next working days.