E-mail:[email protected] …REF: Mktg/2009-2010/BFG Slag (Fresh)/NIT 03 Dt.20/06/2009 1of 33...

REF: Mktg/2009-2010/BFG Slag (Fresh)/NIT 03 Dt.20/06/2009 1 of 33

Rashtriya Ispat Nigam Limited

Visakhapatnam Steel Plant Marketing Department By Products Section

E-mail:[email protected] [email protected], Website: www.vizagsteel.com

Sub: Sale of Blast Furnace Granulated slag (BFG) to Merchant exporters for export.

Notice inviting tender for export of BFG slag (Fresh from SSY) on merchant export terms for a period of Three years. 1.0 Rashtriya Ispat Nigam Ltd Visakhapatnam Steel Plant (VSP) invites

sealed bids for sale of Blast Furnace Granulated slag (Fresh from Slag Storage Yard) on ex-plant basis, on merchant export terms for export to any country for a period of Three years.

2.0 Indicative specification of BFG slag (Fresh): 3.0 Total Quantity available:

3.1 Quantity Offered under this tender: 1st Year: 10,75,000 Mt + 15%. 2nd Year: 13,00,000 Mt + 15 %. 3rd Year: 13,00,000 Mt + 15%.

4.0 Period of contract: Three years. 4.1 Countries for export: any country (other than banned

countries). 5.0 Earnest money deposit (EMD):

5.1 EMD shall be submitted at the rate of Rs 4/MT for the quantity quoted for the total contract period subject to a maximum of Rs.1 Crore.

5.2 EMD will be accepted in the form of crossed DD/TT/BG/RTGS in Indian rupees. Format of bank guarantee (BG) for EMD is enclosed at Annexure- A. BG in the prescribed format will be accepted for the EMD. The same is to be established through Visakhapatnam branch of any scheduled commercial bank (as per the act of RBI) or any scheduled commercial bank at any other place subject to the following condition:

(i) Any notice issued by RINL at Visakhapatnam branch shall be deemed to be notice served on bank executing the BG.

(ii) Claims shall be payable at this branch. 5.3 Cheques will not be accepted for EMD. 5.4 Tenders (including those from PSU’s of state and central

govt.) will not be accepted without EMD. 5.5 EMD submitted in the form of BG shall remain valid initially

till 13/09/2009 and may be extended by the tenderer as per

Cao 30-38% Sio2 30-40% Al2o3 15-22% Mgo 8-11% Feo 5% max Mno 2% max

Moisture 12% max


the direction of RINL. After acceptance of the tender, EMD of the unsuccessful tenderers shall be returned.

5.6 EMD of the successful tenderer will be adjusted towards performance guarantee (refer to the terms and conditions enclosed at Annexure-B). Alternatively, EMD will be returned on submission of Bank guarantee against Performance guarantee.

5.7 EMD shall be forfeited without reference, if the tenderer / successful tenderer fails to comply with any of the following conditions:

(a) To keep their offer firm and valid for acceptance by RINL till 1700 hrs IST on 13/09/2009 or as extended by RINL.

(b) To furnish performance guarantee (in case EMD is submitted in the form of BG) within 15 days form the date of acceptance of the tender.

6.0 Price: 6.1 Currency of price: Indian rupees. 6.2 Price basis: The tenderer shall quote a price per MT of BFG

slag (fresh) for ex-plant delivery for the slag issued from Slag bay of the Slag storage yard. The loading by RAIL/ROAD shall be done by VSP. The price shall be exclusive of central excise duty and sales tax.

6.3 The above quoted price per MT is inclusive of moisture content in the BFG slag.

6.4 Invoice shall be raised for the actual tonnage delivered on ex-plant basis without deduction for moisture.

6.5 The tenderer shall quote a price for the first year. The rate applicable for the second year shall be 5% more than the first year price and for the third year the rate applicable shall be 10% more than the first year price.

7.0 Payment terms: Cash and Carry basis. Delivery Order shall be issued against 100 % advance payment. Mode of payment shall be by DD / TT/RTGS.

8.0 Validity: Tender shall be kept valid for acceptance up to 60 days. 9.0 Diversion to domestic market:

Incase any quantity is diverted to the domestic market by the successful tenderer out of the material lifted for export purpose, the successful tenderer shall make good the price difference between the list price of BFG slag (Fresh Slag) for the month of diversion and ex-works price agreed with the successful tenderer for export including the applicable excise duty and sales tax etc. In case of short fall (i.e. Difference in actual quantity lifted for export over the quantity for which proof of export is submitted) the successful tenderer shall make good the price difference as above apart from compensating the amounts claimed by the statutory authorities, if any, in this connection.

10.0 All other terms and conditions shall be as per the terms and conditions stipulated in the enclosed Annexure-B.

In case of contradiction on any issue between notice inviting tender (NIT) and terms & conditions, the provisions in NIT will override the terms and conditions.


11.0 Instructions to the tenderers: The following shall be taken into due consideration while submitting their offer: 11.1 Loading of BFG Slag will be allowed round the clock. 11.2 The movement of vehicles will be restricted during safety

timings within the plant as detailed below:

From To 5:30 am 7:00 am 8:00 am 9:15 am 1:30 pm 3:00 pm 5:00 pm 6:00 pm 9:30 pm 11:00 pm

11.3 The capacity of the weighbridge used for slag weighment is

60 MT maximum. 12.0 Tender submission:

12.1 All bids shall be furnished in sealed covers in three parts as indicated below super scribing “Tender notice No. Mktg/2009- 2010/BFG slag (Fresh)/ NIT-03 dated 20/06/2009 for BFG slag (Fresh) on ex-plant basis on merchant export basis”, part-A, part-B and part-C separately addressed to "Sr. Branch Manger (Byproducts-Mktg), Marketing department, Visakhapatnam steel plant, room no. 58 project office building, Visakhapatnam, Andhra Pradesh, India, pin-530031, ph: 91-891-2518030 fax: 91-891-2518474". Part – A: In a separate sealed cover super scribing “EMD”, shall contain EMD along with Annexure-1. Part– B: In a separate sealed cover super scribing “Commercial terms and conditions”, shall contain signed NIT, Terms and conditions, Integrity Pact, along with Annexure –2. Part – C: In a separate sealed cover super scribing “Price bid” shall contain price bid in format given at Annexure - 3. Part-A, part-B, and part-C shall be put in a separate sealed cover super scribing as “Bid for BFG slag (Fresh from Slag Storage Yard) on Merchant export basis”.

12.2 Sealed bids shall be dropped into a tender box kept in the office of Sr. Branch Manager (Mktg -By products) before 15.00 hrs IST on 15/07/2009.

12.3 Tenders without submission of EMD shall not be opened and shall not be considered further.

12.4 Bids received by fax/e-mail or late bids or bids with inadequate details shall not be considered.

12.5 Part A and part B will be opened at 15: 30 hrs on 15/07/2009.

12.6 After scrutiny of the techno-commercial terms and seeking confirmations for deleting/withdrawing deviations, if necessary, price bids of tenderers whose techno-commercial bids are acceptable will only be opened and considered further.

12.7 The date of price bid opening will be conveyed separately. 13.0 Incase of successful tenderer requires land out side VSP boundary

for interim storage purpose, the same can be made available by


VSP on chargeable basis as per approved terms and conditions of RINL and subject to statutory authorities giving required approvals.

14.0 The tenderer is required to unconditionally accept the “Integrity Pact” enclosed to the tender document and shall submit the same duly signed along with his offer. Offer of the tender received with out integrity pact duly signed shall not be considered. Presently Shri P. C Prakh Retd IAS., has been appointed as external independent monitor (EIM) for RINL. The copy of Integrity pact to be signed is enclosed at Annexure - G

15.0 Quality of the material: The analysis report on the quality of BFG slag furnished by the seller is final and binding on the buyer. However, the buyer shall have a right to reject BFG slag at the seller’s premises if the same does not conform to accepted specifications, provided such rejection is exercised before the slag is loaded into truck/wagon. No claim whatsoever shall be entertained after commencement of loading in this regard

16.0 VSP reserves the right to cancel or accept or reject any or all bids/NIT or to apportion the quantities to a number of bidders in any form and /or shorten the period of the contract from 3 years without assigning any reason and at sole discretion of VSP and the decision of VSP in this regard will be final and binding.

Shivanad Asst. General Manager (Mktg)/Byproducts


Annexure - 1

(Part – A EMD)

(EMD shall be submitted along with the bid or before in the form of DD/BG or RTGS in Indian rupees only. Please tick marks the relevant matters below.)

EMD is being submitted in the form of DD/BG/RTGS for an amount of _________________ Rs.(___________________________). The relevant details towards EMD are as given below: (a) DD no._________________ dt._____________. (b) The BG towards EMD is enclosed BG no:_________________

dt.______________. (c) The RTGS details towards EMD is enclosed:*

UTR no_____________________ date_________

Station: signature of the tenderer /

Date: authorized representative

*In case of BG, the BG format is enclosed at Annexure- A (BG for EMD). *If the payment for EMD is to be made by RTGS the details of our bank

A/c are as given at Annexure A-1.


Annexure – 2

Part – B (Technical bid)

Product : Blast Furnace Granulated Slag (Fresh)

Grade : (Chemistry as per the NIT)

Tendered quantity (MT) : 13,00,000 MT (+/-15%)/ Year

Min quantity to be quoted (MT) : 2,00,000 MT (+/-15%) /Year

Quantity MT Product

Tender

Qty/Year

Quoted

Qty/Year

BFG slag (Fresh) *13,00,000

Validity: Our offer is valid up to --/--/2009.

Signed NIT of tender No. Mktg/2009-2010/Slag (Fresh)/NIT 03

Dt.20/06/2009, Integrity Pact and Terms & Conditions are enclosed to the

technical bid.

* In case H-1 bidder quotes for 13 lakhs Mt per annum for the first year,

quantity will be restricted to 10.75 lakhs Mt.

Station: Signature of the tenderer /

Date: Authorized representative


Annexure - 3 Part – C (Price bid)

Product Price (Rs / MT) Blast Furnace Granulated Slag (Fresh) Rs ___________PMT Price (in words): Rs ________________________ pmt, ex-Visakhapatnam steel plant. (Quantity & other details shall be as per technical bids) Station : signature of the tenderer/ Date : authorized representative


Annexure – A-1 (RTGS details)

Name of the organization: Rashtriya Ispat Nigam limited

Address: Branch sales office

By products sales office accounts

Project office d- block

Visakhapatnam steel plant

Visakhapatnam - 530 031

Bank name: IDBI Bank, siripuram branch

Bank a/c no:

Figures 0 3 1 1 0 3 0 0 0 0 0 1 7 2 4

Type of account:

Current

Micr code : 5 3 0 2 5 9 0 0 2

Bank address I D BI Bank Ltd

9/26/6-1. Balaji's mangalgiri chambers

Siripuram

Visakhapatnam - 530 003

IFSC code: (eleven digit) I B K L 0 0 0 0 0 3 1

Please instruct your banker to indicate your company name in the

Structural message report.


Annexure-G

INTEGRITY PACT

Rashtriya Ispat Nigam Limited (RINL) 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, a contract for ___________________ against Tender NO. _____________, Dated ______ 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).

The Principal will nominate an External Independent Monitor(s) (EIM (s)) by name at the tender stage/will appoint in case of receipt of any reference, from the panel of EIMs, for monitoring the tender process and the execution of the contract in order to ensure compliance with the Integrity Pact by all the parties concerned.

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 for third person, any material or non material benefit which the person is not legally entitled to.

(b) The Principal will, during the tender process treat all bidders with equity and reason. The Principal will in particular, before and during the tender process, provide to all Bidders the same information and will not provide to any Bidder 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. (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 if there be a substantive suspicion in this regard, the Principal will inform Chief Vigilance Officer of RINL and in addition can initiate disciplinary action.


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

(1) The Bidder(s)/ Contractor(s) commit to take all measures necessary to prevent

corruption. He commits 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 or to vitiate the Principal’s tender process or contract execution.

(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 cartelization in the bidding process or to vitiate the Principal’s tender process or execution of the contract.

(c) The Bidder(s)/Contractor(s) will not commit any offence under the 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)/Contractor(s) of foreign origin shall disclose the name and address of the Agent(s)/representative(s) in India, if any. Similarly the Bidder(s)/Contractor(s) of Indian Nationality shall furnish the name and address of the foreign supplier/contract Agency, if any. Further details, as mentioned in the Guidelines on Indian Agents of Foreign “Suppliers/contract agencies”, shall be disclosed by the Bidder(s)/Contractor(s) wherever applicable. Further, as mentioned in the Guidelines, all the payments made to the Indian agent(s)/representative(s) have to be in Indian Rupees only.

Copy of the Guidelines on Indian Agents of Foreign “Suppliers/contract agencies” is enclosed.

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

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


Section 3 –Disqualification from tender process and exclusion from future contracts:

(1) A transgression is considered to have occurred, if the principal after due consideration of the available evidence, concludes that a reasonable doubt is possible.

(2) If the Bidder(s)/Contractor(s), before award of contract or after award of contract 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 entitled to disqualify the Bidder(s) from the tender process or to terminate the contract, if already awarded, for that reason, without prejudice to other remedies available to the Principal under the relevant GCC of the tender/contract.

(3) If the bidder/Contractor has committed a transgression through a violation of any of the terms under Section 2 above or in any other form such as to put his reliability or credibility into question, the Principal is entitled also to exclude the bidder / Contractor from future tenders/Contract award processes. The imposition and duration of the exclusion will be determined by the principal keeping in view the severity of the transgression. The severity will be determined by the circumstances of the case, in particular the number of transgressions, the position of the transgressors within the company hierarchy of the bidder /Contractor and the amount of the damage.

(4) If it is observed after payment of final bill but before the expiry of validity of Integrity pact that the contractor has committed a transgression through a violation of any of the terms under Section 2 above during the execution of contract, the Principal is entitled to exclude the Contractor from future tenders/Contract award processes.

(5) The exclusion will be imposed for a minimum period of six (6) months and a maximum period of three (3) years.

(6) If the bidder / Contractor can prove that he has restored/ recouped the damage to the principal caused by him and has installed a suitable corruption prevention system, the Principal may revoke the exclusion before the expiry of the period of such exclusion.

Section 4 – Compensation for Damages:

(1) If the Principal has disqualified the bidder from the tender process prior to the award in accordance with Section 3 above, the Earnest Money Deposit (EMD)/Bid security furnished, if any, along with the offer as per the terms of the Invitation to Tender (ITT) shall be forfeited. This is apart from the disqualification of the Bidder as may be imposed by the Principal as brought out at Section3 above

(2) If the Principal has terminated the Contract in accordance with Section 3 above, or if the Principal is entitled to terminate the Contract in accordance with Section 3 above, the Security Deposit/performance bank guarantee furnished by the contractor, if any, as per the terms of the ITT/Contract shall be forfeited without prejudicing the rights and remedies available to the principal under the relevant General conditions of contract.

This is apart from the disqualification of the Bidder, as may be imposed by the Principal, as brought out at Section 3 above.


Section 5 – Previous transgressions:

(1) The Bidder declares that, to the best of his knowledge, no previous transgressions occurred in the last three (03) years with any other Company in any country conforming to the anti-corruption approach or with Government/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. The contract, if already awarded, can be terminated for such reason.

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

(1) The Bidder(s)/Contractor(s) undertake to demand from all his subcontractors a commitment in conformity with this Integrity Pact, and to submit it to the Principal before seeking permission for such subcontracting.

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

(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)/ sub-

contractor(s):

If the Principal obtains knowledge of conduct of a Bidder, Contractor, Sub-contractor or of any employee or a representative or an associate of a Bidder/Contractor/ Subcontractor which constitutes corruption, or if the Principal has substantive suspicion in this regard, the Principal will inform the same to CVO of RINL.

Section 8 – External Independent Monitor(s)(EIM (s)):

(1) The Principal appoints competent and credible External Independent Monitor(s) with clearance from Central Vigilance Commission & Transparency International (India). The EIM (s) reviews independently, the cases referred to him/them to assess whether and to what extent the parties concerned comply with the obligations under this Integrity Pact,

(2) In case of noncompliance of the provisions of the Integrity pact, the complaint/noncompliance is to be lodged by the aggrieved party with the Nodal Officer only appointed by CMD/RINL. The Nodal Officer shall refer the complaint / non compliance so received by him to the EIM, already appointed or to be appointed for that case.


(3) The EIM is not subject to instructions by both the parties and performs his

functions neutrally and independently. The EIM(s) will submit report to the CMD, RINL.

(4) The Bidder(s)/Contractors(s) accepts that the EIM has the right to access without restriction, to all tender/contract documentation of the Principal including that provided by the Bidder/Contractor. The Bidder/Contractor will also grant the EIM upon his request and demonstration of a valid interest, unrestricted and unconditional access to his tender/contract documentation. The same is applicable to Subcontractors also. The EIM is under contractual obligation to treat the information and documents of the Bidder(s)/Contractor(s)/Sub-contractor(s) with confidentiality.

(5) The Principal will provide to the EIM sufficient information about all meetings among the parties related to the tender/contract for the cases referred to EIM, provided such meetings could have an impact on the contractual relations between the Principal and the Contractor. The parties offer to the EIM the option to participate in such meetings.

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

(7) The EIM will submit a written report to the CMD, RINL within four (04) to six (06) weeks from the date of reference or intimation to him by the Principal and, should the occasion arise, submit proposals for corrective actions for the violations or the breaches of the provisions of the agreement noticed by the EIM.

(8) EIM may also submit a report directly to the CVO of RINL and the Central Vigilance Commission, in case of suspicion of serious irregularities attracting provisions of the IPC/ PC Act.

(9) Expenses of EIM shall be borne by RINL/VSP as per terms of appointment of EIMs.

(10) The word ‘Monitor’ means External Independent Monitor and would include both singular and plural.

Section 9 – Duration of the Integrity Pact:

(1) This Pact comes into force upon signing by both the Principal and the Bidder/Contractor. It expires for the Contractor twelve (12) months after the last payment under the contract, and for all unsuccessful Bidders, six (06) months after the contract has been awarded and accordingly for the Principal after the expiry of respective periods stated above.

(2) If any claim is made/ lodged during the valid period of the IP, the same shall be binding and continue to be valid even after the lapse of this pact as specified above, unless it is discharged/determined by CMD of RINL.


Section 10 – Other provisions:

(1) This agreement is subject to Indian Law. Place of performance and jurisdiction is the Registered Office of the principal, i.e. Visakhapatnam, State of Andhra Pradesh, India.

(2) Changes and supplements as well as termination notices need to be made in writing. Side agreements to this pact have not been made.

(3) If the Contractor is a partnership firm/ consortium, this agreement must be signed by all partners/ consortium members, or their Authorized Representative(s) by duly furnishing Authorization to sign Integrity Pact.

(4) Should one or several provisions of this agreement turnout to be invalid, the remaining part of this agreement remains valid. In this case, the parties will strive to come to an agreement to their original intentions.

(5) Wherever he or his is indicated in the above sections, the same may be read as he/she or his/her, as the case may be.

(For & On behalf of the Principal) (For & On behalf of Bidder/ Contractor)

(Office Seal) (Office Seal)

Place --------------- Date --------------- Witness 1:

(Name & Address)

Witness 2:

(Name & Address)


GUIDELINES FOR INDIAN AGENTS OF FOREIGN “SUPPLIERS/CONTRACT AGENCIES” 1.0 There shall be compulsory registration of Indian Agents of foreign

suppliers/contract Agencies with RINL in respect of all Global (Open) Tenders and Limited Tenders. An agent who is not registered with RINL shall apply for registration in the prescribed Application Form.

1.1 Registered agent needs to submit before the placement of order by RINL, an Original certificate issued by his foreign supplier/ contract Agency (or an authenticated Photostat copy of the above certificate duly attested by a Notary Public) confirming the agency agreement and giving the status being enjoyed by the agent along with the details of the commission/remuneration/salary/retainer being paid by them to the agent(s).

1.2 Wherever the Indian representative has communicated on behalf of their foreign supplier/contract Agency and/or the foreign supplier/contract Agency have stated that they are not paying any commission to their Indian agent(s) but paying salary or retainer, a written declaration to this effect given by the foreign supplier/contract Agency should be submitted before finalizing the contract.

2.0 DISCLOSURE OF PARTICULARS OF AGENT(S)/REPRESENTATIVE(S) IN

INDIA, IF ANY:

2.1 Bidders of Foreign nationality shall furnish the following details in their quotation/bid:

2.1.1 The name and address of their agent(s)/representative(s) in India, if any, and the extent of authorization and authority given to them to commit them. In case the agent(s)/representative(s) is a foreign Company, it shall be confirmed whether it is a really substantial Company and details of the company shall be furnished.

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

2.1.3 Confirmation of the Bidder that the commission/remuneration if any, payable to his agent(s)/representative(s) in India, may be paid by RINL in Indian Rupees only.


3.0 DISCLOSURE BY INDIAN AGENT(S) OF PARTICULARS OF THEIR

FOREIGN SUPPLIER/CONTRACT AGENCY AND FURNISHING OF REQUISITE INFORMATION:

3.1 Bidders of Indian Nationality shall furnish the following details/certificates in/along with their offers:

3.1.1 The name and address of foreign supplier/contract agency indicating their nationality as well as their status, i.e., manufacturer or agent of manufacturer holding the Letter of Authority.

3.1.2 Specific Authorization letter by the foreign supplier/contract agency authorizing the agent to make an offer in India in response to tender either directly or through their agent(s)/representative(s).

3.1.3 The amount of commission/remuneration included for bidder in the price (s) quoted

3.1.4 Confirmation of the foreign supplier/contract Agency of the Bidder, that the commission/remuneration, if any, reserved for the Bidder in the quoted price(s), may be paid by RINL in India in equivalent Indian Rupees.

4.0 In either case, in the event of materialization of contract, the terms of payment

will provide for payment of the commission/remuneration payable, if any, to the agent(s)/representative(s) in India in Indian Rupees, as per terms of the contract.

4.1 Failure to furnish correct information in detail, as called for in para 2.0 and/or

3.0 above will render the bid concerned liable for rejection or in the event of materialization of contract; the same is liable for termination by RINL. Besides this, other actions like banning business dealings with RINL, payment of a named sum etc., may also follow.


TERMS AND CONDITIONS FOR SALE OF BLAST FURNACE GRANULATED (BFG) SLAG ON MERCHANT EXPORT BASIS FOR EXPORT. (All clauses of NIT Ref No: Mktg/2009-2010/BFG Slag (Fresh)/NIT 03 Dt.20/06/2009 form part of this agreement.) 1.0 Definitions:

1.1 Contract Quantity: Quantity to be lifted during the contract period (with a permissible variation of + 15%)

1.2 Contract Value: Contract value will be the contract quantity multiplied by rate in rupees per MT.

1.3 Annual Quantity: Contract quantity committed in each year with a variation of + 15%.

1.4 Year: 12 Calendar months. 1.5 Seller: Rashtriya Ispat Nigam Limited, Visakhapatnam Steel

Plant herein after referred to as a SELLER 1.6 Buyer: The successful tenderer including his

successors/assigns hereinafter referred to as a BUYER 2.0 Tender evaluation criteria:

2.1 The buyer shall quote for minimum of 2,00,000 MT per annum and in multiples of 1,00,000 Mt per annum thereafter up to a maximum quantity of 13,00,000 Mt of BFG Slag (Fresh) per annum. Bids for less than 2 lakh Mt shall not be entertained. Total quantity available will be as per the clause 5.1

2.2 Tender evaluation will be done by weightage point’s basis. Weightage points shall be awarded based on the quantities quoted below:

Quantity Quoted (MT per annum)

Weightage Points Awarded

2,00,000 1.00 3,00,000 1.01 4,00,000 1.02 5,00,000 1.03 6,00,000 1.04 7,00,000 1.05 8,00,000 1.06 9,00,000 1.07 10,00,000 1.08 11,00,000 1.09 12,00,000 1.10 13,00,000 1.11

2.3 The following clauses will illustrate the evaluation procedure:

(i) In order to arrive at the H-1 price, the price quoted by the tenderer shall be multiplied by the weightage points based on the quantities quoted for BFG Slag (fresh) as per table above. The contract shall be awarded based on the ranking of the price thus arrived.


For Example:

BUYER

Quoted Quantity

(MT)

Quoted Price

Rs/MT

Weightage Points

Awarded

Price Arrived after multiplying with weightage points

(Rs/MT) XXXX 2,00,000 106 1.00 106.00 YYYY 4,00,000 105 1.02 107.01 ZZZZ 7,00,000 104 1.05 109.02

From the above, it can be seen that BUYER ZZZZ shall be H-1 YYYY shall be H-2 and XXXX shall be H-3.

In case H-1 tenderer quotes for full quantity (i.e for 13 lakh MT) full quantity will be allotted to H-1 BUYER. However if the H-1 tenderer quotes for part quantity (less than 13 Lakh MT and more than or equal to 2,00,000 MT), then the balance quantity shall be allotted to the remaining tenderers on the basis of their ranking arrived after multiplying their quoted price with eligible weightage points. For Example:

BUYER

Quoted Quantity

(MT)

Quoted Price

Rs/MT

Weightage Points

Awarded


(Rs/MT) XXXX 2,00,000 106 1.00 106.00 YYYY 4,00,000 105 1.02 107.01 ZZZZ 7,00,000 104 1.05 109.02

From the above, it can be seen that BUYER ZZZZ shall be awarded for the contract quantity of 7.0 lakhs MT, YYYY shall be awarded for the contract quantity of 4.0 lakhs MT and XXXX shall be awarded for the contract quantity of 2.0 lakh MT at their respective quoted price.

(ii) In case the price arrived after multiplying with eligible weightage points with the tenderer’s quoted price becomes equal for two or more than two BUYERs, the contract shall be awarded to the BUYER whose quoted price is higher. The following example will illustrate the procedure. For Example:

BUYER

Quoted Quantity

(MT)

Quoted Price

Rs/MT

Weightage Points

Awarded


(Rs/MT) XXXX 2,00,000 105.00 1.00 105.00 YYYY 4,00,000 106.00 1.02 108.12 ZZZZ 7,00,000 100.00 1.05 105.00

From the above, it can be seen that BUYER YYYY shall be awarded 4.0 lakh Mt at Rs.106.00/MT, BUYER XXXX shall be


awarded 2.0 lakh MT at Rs.105/MT and ZZZZ shall be awarded 7.0 Lakh Mt at Rs.100/MT.

(iii) In case the BUYER is awarded part quantity as per evaluation criteria against his quoted quantity, the BUYER shall be awarded part quantity at his quoted price for the tonnage allotted to him. The following example will illustrate procedure. For Example:

BUYER

Quoted Quantity

(MT)

Quoted Price Rs/MT

Weightage Points Awarded


(Rs/MT) XXXX 2,00,000 115.00 1.00 115.00 YYYY 6,00,000 108.00 1.04 112.32

ZZZZ 13,00,00

0 100.00 1.11 111.00

From the above, the H-3 i.e BUYER ZZZZ shall be awarded the part quantity of 5,00,000 MT against his quote of 13,00,000 MT at his quoted price of Rs.100/MT after fulfilling the quoted quantities of H-1 and H-2.

2.4 However, VSP reserves the right to negotiate with any/all bidders for a higher price or quantity.

2.5 In case H-1 bidder quotes for 13 lakhs Mt per annum for the first year, quantity will be restricted to 10.75 lakhs Mt.

3 Specification of Blast Furnace Granulated Slag from Dump Yard 3.1 The indicative specifications of BFG Slag is :

CaO 30-38% SiO2 30-40% Al2O3 15-22% MgO 8-11% FeO 5% max MnO 2% max

Moisture 12% max 3.2 The seller intends to sell quantities (as detailed at 5.1) of

BFG Slag (fresh) as per the indicative specifications above on ex-plant basis on merchant export to any country for a period of 3 years and the buyer intend to buy the same.

4 Period of Contract: Three (3) years from date of acceptance of the tender.

5 Quantity: 5.1 Quantity offered under this tender:

5.1.1 1st Year: 10,75,000 Mt + 15%. 5.1.2 2nd Year: 13,00,000 Mt + 15 %. 5.1.3 3rd Year: 13,00,000 Mt + 15%.

6 Delivery Schedule: 6.1 Annual Quantity: The buyer shall lift annual contracted

quantity with in the permissible variation of (+ 15%). 6.2 Monthly quantity: The buyer shall lift monthly quantity on

prorata basis regularly, failing which penalty shall be charged as detailed at point 13.1 to 13.4.


7 Price: A Firm price of Rs.________ per MT on Ex-plant basis (i.e. agreed rate in Rs/MT) shall apply for the first year from the date of acceptance of the tender. The price applicable for the second year shall be 5% more than the first year price and for the third year price applicable shall be 10% more than the first year price.

8 Payment Terms: 8.1 The buyer shall remit in advance 100 % value of the material

along with the Excise Duty, Sales Tax (VAT) and differential price w.r.t seller’s highest domestic price for issue of Delivery Order. However, the buyer at his option may submit BGs towards value of Excise Duty, Sales Tax (VAT) and differential price w.r.t seller highest domestic price as detailed below: a) BG for Differential Price: This BG covers the value

difference for the shipment quantity based on the price for which DO is to be issued and the highest domestic price of RINL (Annexure- C)

b) BG for Excise Duty: This BG covers the value of Excise Duty payable on the quantity covered for one shipment calculated based on the highest domestic price or the Delivery Order price whichever is higher. (Annexure- D)

c) BG for Sales Tax: This BG covers the value of Sales Tax payable without any concessional form on the quantity for one shipment calculated based on the highest domestic price prevailing or the Delivery Order price whichever is higher. (Annexure- E)

The same BGs can be accepted for above purposes for issue of materials for subsequent shipment provided the party furnishes proof of export for the previous shipment and ensures validity of the BG.

9 Quality of the BFG Slag(Fresh): 9.1 The analysis report on the quality of BFG Slag furnished by

the SELLER is final and binding on the BUYER. However, the BUYER shall have a right to reject BFG Slag at the SELLER’s premises if the same does not confirm to accepted specifications, provided such rejection is exercised before the Slag is loaded into trucks/wagon. No claim whatsoever shall be entertained after commencement of loading in this regard

10 Delivery of the Blast Furnace Granulated Slag (fresh): 10.1 Fresh BFG slag shall be delivered FOT in case of Road and

FOR in case of Rail. Freight shall be borne by the BUYER. In case of rail, the BUYER should pay freight in advance and it will be to BUYERS account only, where RINL is consignor and RINL indents for the rake.

10.2 The following shall be taken into due consideration while submitting the offer:

(i) Loading of BFG slag will be round the clock. (ii) Entry and Exit for Vehicles: Vehicles have to enter and

exit through BC Gate / BCSY. (iii) The movement of vehicles will be restricted during

safety timings within the plant as detailed below:


FROM TO 5:30 AM 7:00 AM 8:00 AM 9:15 AM 1:30 PM 3:00 PM 5:00 PM 6:00 PM 9:30 PM 11:00 PM

(iv) The capacity of the weighbridge used for slag weighment is 60 MT Maximum.

11 Performance Guarantee: 11.1 The BUYER shall execute Performance Guarantee equivalent to

5% of the contract value in the form of DD/BG/Bankers Cheque/RTGS. In case of BG the same has to be submitted as per the format given at Annexure- F. The Performance Guarantee will be discharged on completion of the contract subject to the following:

11.2 In case the BUYER fails to lift the annual quantity during the first year, the seller shall foreclose the contract and the seller shall forfeit the entire Performance Guarantee amount.

11.3 In case the BUYER fails to lift the annual quantity during the second year, the seller shall foreclose the contract and the seller shall forfeit the 2/3rd Performance Guarantee amount.

11.4 In case the BUYER fails to lift the annual quantity during the third year, the seller shall forfeit the 1/3rd Performance Guarantee amount.

12 Submission of FORMS: The BUYER (Merchant Exporter) shall submit H Form and execute necessary bond with Central Excise Authorities for lifting the material without payment of Excise Duty and submit a copy of the relevant CT1 form before issue of Delivery Order on Ex-Plant basis. Further, the BUYER shall also furnish proof of Exports shipment-wise within 3 months from the date of issue of BFG Slag or as permitted by the Statutory Authorities.

13 Penalties for short lifting (Monthly and Half-Yearly): 13.1 Monthly and Half-Yearly Quantities available during the

contract period: 13.1.1 1st year Quantity: 10,75,000 Mt (+ 15%) (a) Monthly quantity available for 1st 7 months: 75,000 Mt (i.e 1st Sept’09 to 31st March’2010)

(b) Monthly quantity available for remaining months: 1,10,000 Mt (i.e 1st April’2010 to 31st Aug’2010)

(c) Accordingly half-yearly quantities would be as follows: 1st Six Months (half-yearly) 4,50,000 Mt

2nd Six Months (half-yearly) 6,25,000 Mt 13.1.2 2nd Year & 3rdYear Quantity:13,00,000 Mt(+ 15%)

(a) Monthly Quantity 1,08,333 Mt (b) Half-yearly Quantity 6,50,000 Mt

13.2 Penalties for short lifting: 13.2.1 Monthly Penalties: The buyer shall lift a minimum of 75%

monthly quantity (i.e {Yearly contracted Quantity / 12} X75%). In case the BUYER fails to lift the 75% of the monthly quantity in a month, a penalty of Rs.25/- Per MT shall be payable by the BUYER for the difference between the 75% of the monthly quantity and the actual quantity


lifted during the month (i.e {75% of monthly contracted quantity – actual lifted Quantity} X Rs.25).

13.2.2 Half-Yearly Penalties: The buyer shall lift a min of 80% of

the half-yearly quantity (i.e {Yearly contracted Quantity / 2} X 80%). In case the BUYER fails to lift 80% of the half-yearly quantity in first six months, 1/6th of the performance guarantee will be forfeited. In such case Buyer has to replenish the Performance Guarantee amount immediately for lifting the BFG slag in the subsequent months.

Penalties recovered shall not be refunded even after fulfillment of Half-yearly/ Annual quantities.

13.3 However, at the end of the every year the clauses detailed at 11.1 to 11.4 shall be applicable and accordingly contract will be executed.

13.4 In order to fulfill the half yearly and / or yearly contract conditions the buyer will be allowed to make up back logs arising out of monthly short falls, if any, through fresh slag quantities and/ or dump yard slag quantities depending on the availability. The decision of Engineer In charge in this regard shall be final and no claims what so ever shall be entertained on the aspect.

13.5 In case the Buyer lifts BFG Slag from dump yard in order to make up the back logs the loading into vehicles will be in buyer’s scope. The necessary equipment for loading into vehicles is also to be arranged by the Buyer. It may be noted that at present there is no provision for dispatches by rakes for BFG slag from dump yard. However, in case of availability of such provision in future the Buyer will have to pay the Rail freight in advance before the rake is indented by the Seller on behalf of the Buyer, and loading into wagons will be in the buyer’s scope.

13.6 In case of lifting BFG Slag from dump yard the price will be arrived as follows:

{Price of BFG Slag from SSY under this contract minus Rs.35/Mt}

13.7 Timings for lifting BFG Slag (Dump Yard): Dispatches of Dump Yard is allowed only during 9:00 AM to 05:30 PM, with the applicable safety timing restrictions

13.8 In case sufficient quantities of BFG Slag from SSY are not available in a particular month for execution of this contract, the contract fulfillment will be seen only w.r.t the available quantities.

14 Safety Clause: 14.1 The BUYER shall comply with all Safety and Security

Regulations while lifting the material from the Plant of Visakhapatnam Steel Plant, as applicable from time to time.

14.2 The Slag trucks shall be covered with Tarpaulin suitably to avoid spillage of slag on the roads during the transportation. Cost incurred by RINL due to non-compliance of the above provision shall be recovered from the Buyer. Overhead @ 25% of cost also shall be recovered from the buyer.


15 Jurisdiction Clause: The Courts at Visakhapatnam shall have exclusive jurisdiction in respect of disputes arising/under/out of this sale Contract of BFG Slag.

16 Force Majeure: If the SELLER and/or the BUYER be prevented from discharging its or their obligation under this agreement by reasons of arrests or restraints of princes or rulers, Government of people, War, Blockade, Revolution, Insurrection, Mobilization, Strikes, Riots, Civil Commotions, Lockouts, Accidents, Acts of God, plague or other epidemics, destruction of the materials by fire or flood or other natural calamity or on account of any other cause interfering with the production and/ or delivery of the materials as herein above contemplated, the time for delivery shall be postponed by the time or time during which production and/or delivery is prevented by any such causes as herein above mentioned, provided that in the event of such delay exceeding ninety days, the party other than the party which invokes the force majeure may at their option, cancel this agreement by Notice in-writing to the other party in respect of the undelivered quantity of the materials without, however, right against or being responsible to the other party for such cancellation. The party invoking force-majeure shall within 15 days of the occurrence of force-majeure causes; put the other party on notice supported by certificate from the Chamber of Commerce or concerned governmental authority and shall likewise intimate the cessation of such causes. If the force-majeure condition continues beyond a period of six months the SELLER or the BUYER may at his option cancel this agreement by notice in writing to other party in respect of the undelivered quantity of the materials without, however, any right against or being responsible to the other party for such cancellations.

17 Arbitration Clause: In the event of any dispute or difference of opinion between the parties hereto on the construction of any clause herein contained or rights, duties and liabilities of the parties hereto arising out of these presents including difference in price referred to in Clause above the same shall be referred to Chairman-cum-Managing Director, Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant, Visakhapatnam, or his Nominee as the Sole Arbitrator. The decision of the Sole Arbitrator shall be final and binding on both the parties. The Arbitration proceedings shall be governed by the Arbitration and Conciliation Act 1996 and Rules framed there under. The Venue of Arbitration shall be Visakhapatnam. The Arbitrator’s fee, expenses and all other costs and other expenses relating to the holding of arbitration shall be borne by both the parties equally. However, the fees and expenses of the Advocates and expenses relating to the presentation of witness shall be borne by the respective parties. Should the Arbitrator give a specific award in respect of costs then it would prevail.

18 For any clarifications in the NIT terms of the tender, the following

persons may be contacted: 18.1 Shivanand Gupta AGM (Mktg) & Sr.BM (By Products) 0891-

2518030 18.2 OV Kishore Manager (Mktg) – By Products.

#=#=#=#


ANNEXURE - A PROFORMA BG FOR EMD

TO RASHTRIYA ISPAT NIGAM LIMITED VISAKHAPATNAM STEEL PLANT VISAKHAPATNMA – 530 031 BANK GUARANTEE NO:

LETTER OF GUARANTEE WHREAS Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant (herein after called “RINL”) have invited Tender vide Tender NO: Mktg/2009-10/BFG Slag (Fresh)/NIT 03 Dt. 20/06/2009 (herein after referred to as the said Invitation to Tender) for sale of Blast Furnace Granulated Slag (BFG Slag) from Slag Storage Yard (Fresh) to Merchant Exporters for export to any country on merchant export terms for a period of three Year and WHEREAS the said Invitation to Tender requires that any eligible tenderer wishing to make an offer in response thereto, shall establish an irrevocable EMD in favour of RINL in the from of Bank Guarantee for an amount of Rs. /- for the quantity being quoted for shall be initially valid up to _________ as guarantee that the tenderer.

a) Shall keep his offer firm and valid for acceptance by RINL upto _________ or as extended by RINL.

b) Shall in the event of the offer being accepted by RINL shall make the payment 100% in advance for the value of BFG slag being lifted from time to time.

AND WHEREAS M/S ---------------------------(herein after called as said TENDERER) wish to make an offer in response to the said Invitation to tender for the purchase of BFG Slag on Ex-plant basis for the value of the material being lifted from time to time.

NOW THS BANK HEREBY GUARANTEES that in the event of the said Tenderer failing to abide by any of the conditions referred to in any of the preceding paragraphs, this bank shall pay (through the ___________ branch of Visakhapatnam) to Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant, Visakhapatnam, INDIA on demand and without protest or demur Rs.-------------------/-. This Bank further agrees that the decision of RINL as to whether the said Tenderer has committed a breach of any of the conditions referred to in the preceding paragraphs shall be final and binding. THIS BANK FURTHER undertakes that this Guarantee shall remain irrevocably valid and in force upto ________________

For and on behalf of

_________________ Name of the Bank Signature Name ( ) Duly constituted attorney and Authorized Signatory Designation:

Name and Address of the Bank:


Annexure - C

PROFORMA BG FOR DIFFERENTIAL PRICE (i.e. Highest domestic price – Merchant Export price)

NAME AND ADDRESS OF THE BANK: BG ISSUED ON BEHALF OF: LIMIT OF LIABILITY: DATE OF EXPIRY: BG CLAIM PERIOD: AGREEMENT NO. & DATE: TO RASHTRIYA ISPAT NIGAM LIMITED VISAKHPATNAM STEEL PLANT VISAKHAPATNAM – 530031 INDIA Dear Sirs, In consideration of M/s Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant, Visakhapatnam (herein after called “the supplier”) having agreed to enter into agreement with ______________under the terms & Conditions of agreement no _____ dt _____ (herein after called the said “agreement”) made between M/s Rashtriya Ispat Nigam Limited and M/s _____________________(herein after referred to as “Purchaser”) for sale of Blast Furnace Granulated Slag in bulk on production of a BG for Rs.____________ we, __________________________(Name of the Bank), do hereby under take to pay to supplier an amount not exceeding Rs.____________ against the differential amount between the highest domestic price of the product and the export price of the product referred to in the agreement for the quantity lifted from the plant, on violation in exporting the material as indicated in the said agreement with respect to offer letters issued by the supplier. 2. We,______________________ (Name of the Bank) do hereby undertake

to pay the amounts due and payable under this guarantee without any demur, and merely on a demand from the supplier stating that the amount claimed is due by way of loss or damage caused to or would be caused to or suffered by the supplier by reason of any breach by the purchaser of any of the terms or conditions contained in the said agreement or by reason of the purchaser failure to export the said material. Not withstanding anything to the contrary your decision as to whether the purchaser has made any such breach or failed to perform and the amount or amounts to which you are entitled by reason thereof will be binding on us and we shall not be entitled to ask you to establish your claim or claims under this guarantee but will pay the same on demand without any objection. However, our liability under this guarantee shall be restricted to an amount not exceeding Rs._______________.

3. We______________________ (Name of the Bank), further agree that the

guarantee 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 supplier under or by virtue of the said agreement has been fully paid and its claims


satisfied or discharged provided always this guarantee shall in no event remain in force after________ (date).

4. We_______________________ (Name of the Bank), further agree with the supplier that the supplier shall have the fullest liberty without our consent and without affecting in any manner our obligations here under to vary any of the terms and conditions of the said agreement or to extend time of performance by the said purchaser from time to time or to postpone for any time or from time to time any of the powers exercisable by the supplier against the said purchaser 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 purchaser or for any forbearance, act or omission on the part of the supplier or any indulgence by the supplier to the purchaser or by any such matter or thing what so ever which under the law relating to sureties would, but for this provision have effect of so relieving us.

5. In order to give full effect to the guarantee herein contained you shall be entitled to act as if we were your principal debtors in respect of all your claims against the purchaser hereby guaranteed by us and as aforesaid and we hereby expressly waive all our rights of suretyship and other rights, if any, which are in any way inconsistent with the above or any other provisions of this guarantee.

6. It shall not be necessary for you to proceed against the purchaser before proceeding against us and the guarantee herein contained shall be enforceable against us, not withstanding any security which you may have obtained or obtain from purchaser at any time or when proceedings are taken against us hereunder be outstanding or realized.

7. This guarantee shall not be affected by any change in the constitution of the purchaser or us nor shall it be affected by any change in your constitution by any amalgamation or absorption or reconstruction thereof or therewith but will ensure for and be available to and enforceable by the absorbing or amalgamated reconstructed supplier or concern.

8. We _____________________ (Name of the Bank), lastly undertake not to revoke this guarantee during its currency except with the previous consent of the supplier in writing.

9. Notwithstanding anything contained herein above, our liability under this guarantee is restricted to Rs.___________. This guarantee will remain in force upto _________ date).

10. We are liable to pay the guaranteed amount or any part thereof under this BG only and only if a written claim or demand is made by you on or before ________(date), with claim period of 6 months i.e.,_________(date).

Notwithstanding any thing contained herein above:

1. Our liability under this guarantee shall not exceed Rs.__________. 2. The BG shall be valid upto _________(date). 3. We are liable to pay the guaranteed amount or any part thereof under

this BG only if a written claim or demand is made by the Company on or before _________(date).

11. We (mention the name of bank), hereby agree that any claim due and arising under this guarantee shall be enforceable against our Bank’s branch (mentioning the name & address of branch) at Visakhapatnam and they shall honour such demand in any case not later than next working day.

Dated------------day of -------------2009

Yours Faithfully


Annexure - D PROFORMA BG FOR EXCISE DUTY

NAME AND ADDRESS OF THE BANK: BG ISSUED ON BEHALF OF: LIMIT OF LIABILITY: DATE OF EXPIRY: BG CLAIM PERIOD: AGREEMENT NO. & DATE: TO RASHTRIYA ISPAT NIGAM LIMITED VISAKHPATNAM STEEL PLANT VISAKHAPATNAM – 530031 INDIA Dear Sirs, In consideration of M/s Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant, Visakhapatnam (herein after called “the supplier”) having agreed to enter into agreement with ______________under the terms & Conditions of agreement no _____ dt _____ (herein after called the said agreement) made between M/s Rashtriya Ispat Nigam Limited and M/s _____________________ (herein after referred to as “Purchaser”) for sale of Blast Furnace Granulated Slag in bulk on production of a BG for Rs.____________we, __________________________(Name of the Bank), do hereby under take to pay to supplier an amount not exceeding Rs.____________ against the Excise duty applicable on the highest domestic price or DO price which ever is higher for the quantity lifted from the plant, on violation in exporting the material as indicated in the said agreement with respect to offer letters issued by the supplier. 2 We,______________________ (Name of the Bank) do hereby undertake

to pay the amounts due and payable under this guarantee without any demur, and merely on a demand from the supplier stating that the amount claimed is due by way of loss or damage caused to or would be caused to or suffered by the supplier by reason of any breach by the purchaser of any of the terms or conditions contained in the said agreement or by reason of the purchaser failure to export the said material. Not withstanding anything to the contrary your decision as to whether the purchaser has made any such breach or failed to perform and the amount or amounts to which you are entitled by reason thereof will be binding on us and we shall not be entitled to ask you to establish your claim or claims under this guarantee but will pay the same on demand without any objection. However, our liability under this guarantee shall be restricted to an amount not exceeding Rs._______________.

3 We______________________ (Name of the Bank), further agree that the

guarantee 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 supplier under or by virtue of the said agreement has been fully paid and its claims satisfied or discharged provided always this guarantee shall in no event remain in force after________ (date).


4 We_______________________ (Name of the Bank), further agree with the supplier that the supplier shall have the fullest liberty without our consent and without affecting in any manner our obligations here under to vary any of the terms and conditions of the said agreement or to extend time of performance by the said purchaser from time to time or to postpone for any time or from time to time any of the powers exercisable by the supplier against the said purchaser 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 purchaser or for any forbearance, act or omission on the part of the supplier or any indulgence by the supplier to the purchaser or by any such matter or thing what so ever which under the law relating to sureties would, but for this provision have effect of so relieving us.

5 In order to give full effect to the guarantee herein contained you shall be

entitled to act as if we were your principal debtors in respect of all your claims against the purchaser hereby guaranteed by us and as aforesaid and we hereby expressly waive all our rights of suretyship and other rights, if any, which are in any way inconsistent with the above or any other provisions of this guarantee.

6 It shall not be necessary for you to proceed against the purchaser before

proceeding against us and the guarantee herein contained shall be enforceable against us, not withstanding any security which you may have obtained or obtain from purchaser at any time or when proceedings are taken against us hereunder be outstanding or realized.

7 This guarantee shall not be affected by any change in the constitution of

the purchaser or us nor shall it be affected by any change in your constitution by any amalgamation or absorption or reconstruction thereof or therewith but will ensure for and be available to and enforceable by the absorbing or amalgamated reconstructed supplier or concern.

8 We _____________________ (Name of the Bank), lastly undertake not to

revoke this guarantee during its currency except with the previous consent of the supplier in writing.

9 Notwithstanding anything contained herein above, our liability under this

guarantee is restricted to Rs.___________. This guarantee will remain in force upto _________ date).

10 We are liable to pay the guaranteed amount or any part thereof under this

BG only and only if a written claim or demand is made by you on or before ________(date), with claim period of 6 months i.e.,_________(date).


1. Our liability under this guarantee shall not exceed Rs.__________.

2. The BG shall be valid upto _________(date). 3. We are liable to pay the guaranteed amount or any part thereof

under this BG only if a written claim or demand is made by the Company on or before _________(date).

11. We (mention the name of bank), hereby agree that any claim due and arising under this guarantee shall be enforceable against our Bank’s branch (mentioning the name & address of branch) at Visakhapatnam and they shall honour such demand in any case not later than next working day. Dated------------day of -------------2009

Yours Faithfully


Annexure - E PROFORMA BG FOR SALES TAX @ 4%

NAME AND ADDRESS OF THE BANK: BG ISSUED ON BEHALF OF: LIMIT OF LIABILITY: DATE OF EXPIRY: BG CLAIM PERIOD: AGREEMENT NO. & DATE: TO RASHTRIYA ISPAT NIGAM LIMITED VISAKHPATNAM STEEL PLANT VISAKHAPATNAM – 530031 INDIA Dear Sirs, In consideration of M/s Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant, Visakhapatnam (herein after called “the supplier”) having agreed to enter into agreement with ______________under the terms & Conditions of agreement no _____ dt _____ (herein after called the said “agreement”) made between M/s Rashtriya Ispat Nigam Limited and M/s _____________________ (herein after referred to as “Purchaser”) for sale of Blast Furnace Granulated Slag in bulk on production of a BG for Rs.____________we, __________________________(Name of the Bank), do hereby under take to pay to supplier an amount not exceeding Rs.____________ against the Sale Tax (4%) on the highest domestic price or DO price which ever is higher for the quantity lifted from the plant, on violation in exporting the material as indicated in the said agreement with respect to offer letters issued by the supplier.

2. We,______________________ (Name of the Bank) do hereby undertake to pay the amounts due and payable under this guarantee without any demur, and merely on a demand from the supplier stating that the amount claimed is due by way of loss or damage caused to or would be caused to or suffered by the supplier by reason of any breach by the purchaser of any of the terms or conditions contained in the said agreement or by reason of the purchaser failure to export the said material. Not withstanding anything to the contrary your decision as to whether the purchaser has made any such breach or failed to perform and the amount or amounts to which you are entitled by reason thereof will be binding on us and we shall not be entitled to ask you to establish your claim or claims under this guarantee but will pay the same on demand without any objection. However, our liability under this guarantee shall be restricted to an amount not exceeding Rs._______________.

3. We______________________ (Name of the Bank), further agree that the

guarantee 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 supplier under or by virtue of the said agreement has been fully paid and its claims satisfied or discharged provided always this guarantee shall in no event remain in force after________ (date).

4. We_______________________ (Name of the Bank), further agree with

the supplier that the supplier shall have the fullest liberty without our


consent and without affecting in any manner our obligations here under to vary any of the terms and conditions of the said agreement or to extend time of performance by the said purchaser from time to time or to postpone for any time or from time to time any of the powers exercisable by the supplier against the said purchaser 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 purchaser or for any forbearance, act or omission on the part of the supplier or any indulgence by the supplier to the purchaser or by any such matter or thing what so ever which under the law relating to sureties would, but for this provision have effect of so relieving us.

5. In order to give full effect to the guarantee herein contained you shall be

entitled to act as if we were your principal debtors in respect of all your claims against the purchaser hereby guaranteed by us and as aforesaid and we hereby expressly waive all our rights of suretyship and other rights, if any, which are in any way inconsistent with the above or any other provisions of this guarantee.

6. It shall not be necessary for you to proceed against the purchaser before

proceeding against us and the guarantee herein contained shall be enforceable against us, not withstanding any security which you may have obtained or obtain from purchaser at any time or when proceedings are taken against us hereunder be outstanding or realized.

7. This guarantee shall not be affected by any change in the constitution of

the purchaser or us nor shall it be affected by any change in your constitution by any amalgamation or absorption or reconstruction thereof or therewith but will ensure for and be available to and enforceable by the absorbing or amalgamated reconstructed supplier or concern.

8. We _____________________ (Name of the Bank), lastly undertake not to

revoke this guarantee during its currency except with the previous consent of the supplier in writing.

9. Notwithstanding anything contained herein above, our liability under this

guarantee is restricted to Rs.___________. This guarantee will remain in force upto _________ date).

10. We are liable to pay the guaranteed amount or any part thereof under this

BG only and only if a written claim or demand is made by you on or before ________(date), with claim period of 6 months i.e.,_________(date).


1. Our liability under this guarantee shall not exceed Rs.__________. 2. The BG shall be valid upto _________(date). 3. We are liable to pay the guaranteed amount or any part thereof

under this BG only if a written claim or demand is made by the Company on or before _________(date).

11. We (mention the name of bank), hereby agree that any claim due and arising under this guarantee shall be enforceable against our Bank’s branch (mentioning the name & address of branch) at Visakhapatnam and they shall honour such demand in any case not later than next working day.

Dated------------day of -------------2009

Yours Faithfully


ANNEXURE -F PROFORMA BG FOR PERFORMANCE GUARANTEE

NAME AND ADDRESS OF THE BANK

BG ISSUED ON BEHALF OF :

LIMIT OF LIABILITY:

DATE OF EXPIRY:

BG CLAIM PERIOD:

AGREEMENT NO & DATE:

FOR : MERCHANT EXPORT OF BFG SALG

TO RASHTRIYA ISPAT NIGAM LIMITED VISAKHAPATNAM STEEL PLANT VISAKHAPATNAM – 530 031 Dear Sirs, In consideration of M/S Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant, a company incorporated under the company’s act 1956, wholly owned by Govt of India having its registered office at Administrative building, Visakhapatnam -530 031 AP (herein after referred to as “the supplier”) having agreed to accept BG of Rs._________________ of M/s _____________ (herein after called as “Purchaser”) under the terms and conditions of agreement no _________________________ Dt.__________ for three years (i.e. 36 months) for Merchant Export of BFG Slag on comprehensive job basis and as per agreement Dt._________ (herein after referred to as the said “contract”) for due performance/fulfillment of all the terms and conditions contained in the said contract,________________ (herein after called as said Bank) hereby covenant and agree with you as under:

(1) We undertake to indemnify you and keep you indemnified from any loss from time to time to the extent of Rs.___________ suffered by or that may be caused to “or” suffered by you by reason of any breach or any breaches on the part of the Purchaser of any of the terms and conditions contained in the said contract and in the event the Purchaser shall make any defaults in carrying out lifting of slag under the said contract or otherwise in the observance and performance of any of the terms and conditions relating thereto, we shall forthwith without any protest or demur pay to you such sum or sums not exceeding in total the said sum of ______ as may be claimed by you as your losses and / or damages, cost, charges or expenses by reasons of such default/defaults on the part of the Purchaser.

(2) Not withstanding anything to the contrary, your decision as to whether the

purchaser has made any such default or defaults and the amount or amounts which you are entitled by reason thereof will be binding on us we shall not be entitled to ask you to establish your claim or claims under this guarantee but will pay the same on demand with out objections.

(3) The supplier shall have the fullest liberty to claim payment of the amount

or amounts from time to time under this guarantee, subject to the ceiling limit of Rs._____________ as referred to above and this guarantee shall not become invalid or infructuous because of the partial demand made by the supplier upon us on payment under the circumstances stipulated


herein above and this guarantee shall hold good in favour of the Supplier to the extent of the balance amount covered under this guarantee.

(4) This guarantee shall continue and hold good until it is released by you on

the application by the Purchaser after expiry or the relative guarantee period of the said contract and after the Purchaser had discharged all his obligation under the said contract and produced a certificate of the due completion of the contract under the said contract.

(5) You will have the fullest liberty without our consent and without affecting

this guarantee from time to time to vary any of the terms and conditions of the said contract or extend time of performance of the contract or to postpone for any time or from time to time any of your rights or powers against the Purchaser and either to enforce or forebear to enforce any of the terms and conditions of the said contract and we shall not be released from our liability under this guarantee by the exercise of your liberty with reference to matters aforesaid or by reason of any time being given to the Purchaser or any other forbearance, act or omission on your part or any indulgence by you to the Purchaser or by any variation or modification of the said contract or any other act, matter or thing what so ever which under the law relating to sureties would but for the provisions hereto have the effect of so releasing us from our liability hereunder provided always nothing herein contained will enlarge our liability herein beyond the limit of Rs._____________ as the aforesaid or extend the period of guarantee beyond the said date of _____(date) unless expressly agreed to by us in writing.

(6) This guarantee shall not in any way be affected by your taking or giving up

any securities from the Purchaser or any other person, firm or company on its behalf or by the winding up, dissolution, insolvency, reconstruction or death as the case may be of the Purchaser.

(7) In order to give full effect to the guarantee herein contained you shall be

entitled to act as if we were your principal debtors in respect of all your claims against the Purchaser hereby guaranteed by us and as aforesaid and we hereby expressly waive all our rights of suretyship and other rights, if any which are in any way inconsistent with the above or any other provisions of this guarantee.

(8) Subject to the maximum limit of our liability as aforesaid this guarantee

will cover all your claim or claims against the Purchaser from time to time arising out of or in relation to the said contract and in respect of which a demand or notice in writing is received by us.

(9) This guarantee and the powers and provisions herein contained are in

addition to and not by way of limitation of or substitution of any other guarantee or guarantees here to given to you by us (whether jointly with other or alone) and now existing un cancelled and that this guarantee is not intended to and shall not revoke or limit such guarantee or guarantees.

(10) This guarantee shall not be effected by any change in the constitution of

the Purchaser or us nor shall it be affected by any change in your constitution or by any amalgamations or absorption or reconstruction thereof or therewith but will ensure for and be available to and enforceable by the absorbing or amalgamated reconstructed company or concern.

(11) This guarantee during its currency shall not be revoked by us except with

your previous consent in writing.


(12) It shall not be necessary for you to proceed against the Purchaser before proceeding against us and the guarantee herein contained shall be enforceable against us, not withstanding any security which you may have obtained or obtain from Purchaser at any time or when proceedings are taken against us hereunder be outstanding or realized.

Not withstanding any thing contained herein above:

c) Our liability under this guarantee shall not exceed Rs._____________ d) The BG shall be valid up to ______________ (date)

e) We are liable to pay the guaranteed amount or any part thereof under this

BG only if a written claim or demand is made by the supplier on or before _________ (date)

(13) We (mention the name of bank), hereby agree that any claim due and

arising under this guarantee shall be enforceable against our Bank’s branch (mentioning the name & address of branch) at Visakhapatnam and they shall honour such demand in any case not later than next working day.

Dated------------day of -------------2009

Yours Faithfully

Date post:	07-Apr-2020
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E-mail:[email protected] …REF: Mktg/2009-2010/BFG Slag (Fresh)/NIT 03 Dt.20/06/2009 1of 33...

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