BANK GUARANTEE PROFORMA FOR FURNISHING 
 PERFORMANCE SECURITY  
 In consideration for the President of India
 (hereinafter called "the Government") having agreed to
 exempt........................(hereinafter called "the said
 Contractor(s)" from the demand, under the terms and conditions of
 an Agreement dated.................made between..........and.... 
 of Performance Security for the due fulfilment of the said
 Contractor(s) of the terms and conditions contained in the said
 Agreement, on production of Bank Guarantee for
 Rs....................(Rupees................................ 
 (indicated the name of the Bank) 
 Bank") at the request of........................contractor(s) do
 hereby undertake topay to the Government an amount not exceeding
 Rs....................... against any loss or damage caused to or
 suffered would be caused to or suffered by the Government by
 reason of any breach of the said Contractor(s) of any of the
 terms or conditions contained in the said Agreement. 
 2. We....................do hereby undertake to pay the amount
 due and payable under this Guarantee without any demur, merely on
 a demand from the Government stating that the amount claimed is
 due by way of loss or damage caused to or would be caused to or
 suffered by the Government by reason of breach by the said
 contractor(s) of any of the terms or conditions contained in the
 said Agreement or by reason of the contractor(s)'s failure to
 perform the said Agreement. Any such demand made on the Bank
 shall be conclusive as regards the amount due and payable by the
 Bank under this guarantee. However, our liability under this
 guarantee shall be restricted to an amount not exceeding Rs....
 3. We undertake to pay the Government any money so demanded
 notwithstanding any dispute or disputes raised by the
 contractor(s)/supplier(s) in any suit or proceeding pending
 before any Court or Tribunal relating thereto liability under
 this present being absolute and unequivocal. 
 The payment so made by us under this Bond shall be a valid
 discharge of  our liability for payment thereunder and the
 contractor(s)/supplier(s) shall have no claim against us for
 making such payment. 
 4. We,..................further agree that theguarantee herein
 contained shall remain in full force and effect during the period
 that would be taken for the performance of the said Agreement and
 that it shall continue to be enforceable till all the dues of the
 Government under or by virtue of the said Agreement have been
 fully paid and its claim satisfied or discharged or till.........
 that the terms and conditionsof the said Agreement have been
 fully and properly carried out by the said Contractor(s) and
 accordingly discharges this Guarantee. Unless a demand or claim
 under this Guarantee is made on us in writing on or before the...
 guarantee thereafter. 
 5. We,................further agree with the Government that
 the Government shall have the fullest liberty without our consent
 and without affecting in any manner our obligations hereunder to
 vary any of the terms and conditions of the said Agreement or to
 extend time of performance by the said Contractor(s) from time to
 time or to postpone for any time or from time to time any of the
 powers exercisable by the Government against the said
 Contractor(s)and to forbear or enforce any of the terms and
 conditions relating to the said Agreement and we shall not be
 relieved from our liability by reason of any such variation, or
 extension being granted to the said Contracotr(s) or for any
 forbearance, act or omission on the part of the Government or any
 indulgence by the Government to the said Contractor(s) or by any
 such matter or thing whatsoever which under the law relating to
 sureties would, but for this provision, have effect of so
  relieving us. 
 6. Notwithstanding anything contained herein above our
 liability under the guarantee is restricted to Rs._____ and shall
 remain in force until________. Unless a claim or suit under this
 guarantee is filed with us on or before_______. ALL OUR RIGHTS
 UNDER THE GUARANTEE SHALL BE FORFEITED and the Bank shall be
 relieved and discharged from all liabailities therein. 
 7. This Guarantee will not be discharged due to the change in
 the constitution of the Bank or the Contractor(s)/supplier(s). 
 8. We,....................lastly undertake not to revoke this
 Guarantee during its currency except with the previous consent of
 the Government in writing. 
 Dated the..........date of......20.. 
 for............................ 
 (indicate the name of Bank) 
  Signature...................... 
 Name of the Officer................. 
 (in Block Capitals) 
 Designation of 
  Code No. .................... 
 Name of the Bank and Branch.........