request for quotation (rfq) - steelmint ore.pdf · annexure - i general ... iso-14001, ohsas-18001,...

RFQ No. SAIL/BSP/Mn Ore/I/2014

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Request for Quotation (RFQ)

RFQ No. SAIL/BSP/Mn Ore/I/2014 Dated: 12.07.2014

Global Tender for Import of

Manganese Ore

STEEL AUTHORITY OF INDIA LIMITED BHILAI STEEL PLANT (B S P)

BSP intends to procure 20,000 metric tons of Manganese Ore with +/-10% (Ten Percent) quantity variation for use at its ferro-alloys plant at Chandrapur; and to be delivered to eastern Indian port viz. Gangavaram or Vizag. Global Tenders are invited in this respect details of which are available at our website www.sailtenders.co.in.


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Index

DESCRIPTION CONTENTS PAGE NOS.

Part I Overview 3 - 4

Part II Instructions to Bidders 5 - 13

Part III Proformas 14 - 19

Proforma A Letter of Authority, for the Agent, from established

producer of Manganese Ore

14

Proforma B Statement of deviations from Specification and Bid

terms

15

Proforma C Proforma for Shipping & Loadport Details 16

Proforma D Reference Proforma for Price Bid (Not to be

submitted along with Techno-commercial Bid)

17

Proforma E Proforma of Bank Guarantee for Bid Bond 18 - 19

Part IV Draft of LoA for Sale & Purchase of Manganese

Ore

20- 23

Annexure - I General Conditions of Agreement 24 - 31

Annexure - II Technical Specifications 32

Annexure - III Terms & Conditions for delivery on the basis of

FOB (Trimmed) Named Port (s) of Loading

33 - 36

Terms & Conditions for delivery on the basis of

C&F (Free out) Gangavaram/ Vizag

37 - 42

Annexure - IV Proforma of Bank Guarantee for Performance

Guarantee (PG) Bond

43 - 45

Annexure - V General Rules and Regulations governing conduct of

On-line Reverse Auctions 46 - 55

Part V Indian Agent of Foreign Suppliers Registration

& other details

56 - 64

Part VI Integrity Pact 65 - 80

Annexure - VI List of eligible banks for acceptance of BGs 81 - 82


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Part-I

Overview

Steel Authority of India Ltd. (SAIL), a Government of India Enterprise, is the major producer of steel in India and a leading global steel maker. SAIL has Maharatna company status and is accredited with various quality certificate viz. ISO-9001-2008, ISO-14001, OHSAS-18001, SA-8000 etc. It has Steel Plants/Units and its own captive mines across India and produces various Iron and Steel products like Pig Iron, Flat & Long Steel Products and Special Steels. During the last financial year, SAIL produced more than 14.5 Million Tons of Hot Metal with annual turnover of over Rs50000 Crores. Its sole ferro-alloys plant at Chandrapur (Maharashtra) in India consumes about 0.26 million tonnes of Manganese Ore annually in the manufacturing of ferro-alloys like SiMn, HCFeMn, MCFeMn, etc. for captive use in integrated steel plants.

Presently, BSP intends to procure 20,000 metric tons of Manganese Ore with +/-10% (Ten Percent) quantity variation for use at its ferro-alloys plant at Chandrapur; and to be delivered to eastern Indian port viz. Gangavaram or Vizag. Global Tenders are invited in this respect. Technical Specifications of Manganese Ore are detailed in Annexure-II of Part IV of this Request for Quotation (RFQ).

Techno-commercial Bids (TCB) as well as Price-bids (PB) shall be submitted at ToC/MM deptt., BSP. SAIL reserves the right to finalize the case either through online Reverse Auction (RA) OR otherwise by opening sealed price-bids already submitted at ToC/MM deptt., BSP along with the Techno-Commercial Bid (TCB).

Tentative delivery period would be within a 30 days of issue of LoA / P O. SAIL reserves the right to regulate/extend delivery as per its plant’s requirement.

Bidders are requested to read carefully the instructions contained in the RFQ and submit their offer in line with the requirement indicated. The offer is required to be submitted as follows:

(EMD/Bid Bond, if applicable, and Integrity Pact On or before 19.08. 2014. 1300 hrs (IST) Bid Bond of USD 10,000, in case applicable as per tender terms, shall remain valid for minimum 10weeks

from the last date of submission of offer.

Techno- commercial Bid

On or before 19.08. 2014. 1300 hrs (IST)

Price Bid On or before 19.08. 2014. 1300 hrs (IST)

Due date for opening of Tender On 20.08.2014 at 10:30 a m (IST)

Validity of the Offer for order placement: Each Bidder shall keep his techno-commercial bid &

price bid valid for acceptance by SAIL for minimum 60

(Sixty) days from the date of tender opening and price-

bid firm. However, in case of RA price bid shall be valid

for minimum 30 (Thirty) days from the date of price-

discovery (through Reverse Auction or otherwise at the

option of SAIL).

Summary of other relevant details of the RFQ are as under:

1.1 Material Required Manganese Ore (High Grade) with following preferred specifications:

Manganese Content: minimum 42% (for Grade-II)

with other parameters as specified in Part-IV of RFQ

1.2 Quantity and Quantity Variation

20,000 MT

Quantity Variation: +/-10% at the option of SAIL

1.3 Shipping Tolerance (not Quantity Variation)

+/-5% of shipped cargo


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1.4 Unit of Measurement (Weight and Currency)

Dry Metric Tonne (DMT) for Weight and US Dollars for Currency

1.5 Delivery Schedule To be delivered within 30 days of concluding the agreement. However, may be regulated/extended as per requirement of SAIL.

1.6

Price Discovery

Will be done either through online Reverse Auction or otherwise by opening of sealed price-bids already submitted while submitting Techno-Commercial Bid.

Evaluation of prices shall be done on USD per DMT per 1% of Mn content(FOB/CFR basis) Post price-discovery, SAIL reserves the right to conclude the Agreement(s) with single/multiple source(s) on: - FOB(T) basis, and/or - C&F(FO) basis, and/or - part FOB(T) and part C&F(FO) basis SAIL also reserves the right to receive the Manganese Ore at any of the stated discharge ports viz. Gangavaram/ Vizag. The price discovered and finalized (through RA or otherwise) shall remain FIRM till completion of delivery of the full Order Quantity.

1.7 Inspection As per 3rd

party Sampling and Analysis at Loadport/ as per the agreement between the Seller and Buyer.

1.8 Payment Terms 80% payment: Against Letter of Credit, based on 3rd

party sampling & analysis report at loadport.

20% payment: On CAD basis after receipt of acceptance of material at respective SAIL unit Stores along with documents. However, supplier shall be required to submit invoice for 100% value of shipment.

In case of any other payment terms e.g. 100% against LC at sight, if quoted by the tenderer, loading will be done with interest at the SBI CC rate for 60 days for evaluation purpose.


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PART-II

INSTRUCTIONS TO BIDDERS

1.0 Eligibility Criteria: The bidder should be an overseas producer(mines owner) of

Manganese Ore or Indian Importer (including Central PSU or trading house) meeting the

following eligibility criteria:

a) An Indian Importer offering Mn Ore from an established overseas producer of

Manganese Ore shall submit a Letter of Authority from such producer concerned. b) An Indian agent can submit offer on behalf of only one principal and in case the

said foreign principal also submits offer directly against this tender, offer of the foreign principal shall only be considered. However, order will be placed directly on the principal.

c) Bidder shall bid for full tender quantity.

d) Supporting Documents for Eligibility Criteria:

i) The bidder shall submit company profile / product catalogue / self-attested copy

of valid ISO certificate / audited balance sheet / certificate of incorporation as

a proof of their being producer / supplier of Manganese Ore.

ii) Bidders shall submit documents like self-attested Order copies/ Invoice copies

and Bill of Lading / Goods Receipt Note, etc. as a proof of supply of material.

iii) The supporting documents submitted by the Bidders shall be either in English or

authentic translation in English along with a copy of the original. All supporting

documents shall be self-attested.

1.1 Supplier of Manganese Ore:

Supplier would include authorized agent / importer / Export-Import Trade Houses

including such Indian CPSU. SAIL, however, would prefer to deal directly with the

established overseas producers of Manganese Ore by waiving the requirement of Earnest

Money Deposit (EMD) / Bid Bond as indicated in Clause-11.0 of the RFQ.

1.2 Integrity Pact: The bidder is required to enter into an “Integrity Pact” with the Principal i.e. SAIL. The

Integrity Pact (as detailed at Part VI of RFQ) has to be signed by the Proprietor / Owner /

Partner / Director or by their duly Authorized signatory. In case of failure to return the

Integrity Pact along with the offer / bid, duly signed by the authority as mentioned above,

will disqualify the offer / bid.

2.0 Cost of Bidding

The Bidder shall bear all costs associated with the preparation and submission of its bid,

and the Steel Authority of India Ltd., hereinafter referred to as "The Purchaser," will, in no

case, be responsible or liable for such costs, regardless of the conduct or outcome of the

bidding process. 3.0 No. of Sources: Single source will be engaged.

4.0 Clarification of RFQ

A prospective Bidder requiring any clarification of the RFQ may notify the Purchaser in

writing or by fax / email at the Purchaser's mailing address indicated in the RFQ. The

Purchaser will respond in writing or by fax / email to any request for clarification of the


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RFQ which it receives not later than ten (10) days prior to the deadline for the submission

of bids prescribed by the Purchaser.

5.0 Amendment to RFQ

5.1 At any time prior to the deadline for submission of bids, the Purchaser may, for any

reason, whether at its own initiative or in response to a clarification requested by a Bidder,

modify the RFQ by issuing an amendment.

5.2 The amendment will be put on the same website i.e. www.sailtenders.co.in and will be

binding on all bidders. Where the Purchaser issues an amendment within three (3) days

prior to deadline for submission of bids, the Purchaser will simultaneously extend the

deadline for the submission of bids by three (3) or more working days.

BIDDERS ARE THEREFORE ADVISED TO VISIT THE WEBSITE AT

REGULAR INTERVALS.

Note: The Bidder is expected to examine all instructions, proforma, terms and

specifications in the RFQ. Failure to furnish all information required under the RFQ or

submission of a bid not substantially responsive to the RFQ in every respect will be at the

Bidder's risk and may result in the rejection of the bid.

PREPARATION OF BIDS

6.0 Language of Bid

The Bid prepared by the Bidder and all correspondence and documents relating to the bid,

shall be in the English language. Any printed literature furnished by the Bidder in another

language must be accompanied by a duly signed English translation and for purposes of

interpretation of the bid, the English translation shall govern.

7.0 Documents comprising the Bid : The bid prepared by the Bidder shall comprise of the

following components:

a) Part-I: EMD/ Bid Bond along with a signed copy of Integrity Pact EMD/ Bid Bond, in case applicable, to be furnished in accordance with Para 13 here in

below, and in the specified Proforma-E as given in this RFQ. Submission of duly signed

copy of Integrity Pact along with proper Bid Bond shall be a precondition for

opening/evaluation of Techno – Commercial Bid (Part – II).

b) Part-II: Sealed Techno-commercial Bid

Sealed techno-commercial bid is to be submitted in accordance with Instructions to

Bidders stated in this RFQ comprising –

Technical Bid -As part of the technical bid, the suppliers are required to submit the

technical details and quantities for the Manganese Ore offered by them.

Commercial Bid – As part of the commercial bid, suppliers are required to accept the

terms and conditions of the RFQ.

All forms viz. Proforma-A (Letter of Authority, as applicable), Proforma-B (Statement

of Deviations, if any) and Proforma-C (Shipping & Loadport Details) are to be

submitted as part of the techno-commercial bid.

c) Part-III: Sealed Price Bid

Sealed price bid is to be submitted by bidders after carefully going through the instructions

as given in Proforma D of this RFQ.


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d) There shall be no indication of price in the techno-commercial bid. If prices are indicated

there, such offers are liable to be rejected.

e) The Bidder shall prepare the Bid in 3 envelopes i.e. EMD/Bid Bond & Integrity Pact (Part

I), Sealed Techno-Commercial Bid (Part-II) and Sealed Price-Bid (Part III). Individual

envelopes should be SUPERSCRIBED WITH TENDER ENQUIRY NO [RFQ No.],

PART-I/PART-II/PART-III, THE DUE DATE OF TENDER OPENING AND NAME OF

THE TENDERER. All these three envelopes should be further sealed in a bigger envelop

superscribed with Tender Enquiry No, due date of tender opening and name of the

tenderers and same should be submitted at ToC/MM deptt./BSP.

8.0 The Bidder shall submit his Bid complete in all respects and with all details as

desired in the RFQ, including quantity offered, complete specifications, country of

origin etc.

9.0 Submission of Price-bids:

9.1 Price-bids will be submitted by the Bidders as per Para-7.0 (c) above. The Bidder shall

also submit the signed copy of the General Rules and Regulations governing conduct of On-line

Reverse Auctions (Annexure-V of the RFQ) as a token of acceptance of the same.

9.2 SAIL reserves the right to conclude the Agreement on FOB(T) or C&F(FO) or part FOB(T) and part

C&F(FO) basis and also to receive the Manganese Ore to any of the stated discharge ports viz. Gangavaram/ Vizag. Therefore, post Reverse Auction (RA), the bidders – on request from SAIL or its service provider- may be required to give the break-up of material-price and freight for single port discharge separately, distinctly and invariably.

9.3 The Bidder's given break-up of cost and freight in accordance with para 9.2 above will

be solely for the purpose of obtaining the requisite clearance from Transchart (Ministry of

Shipping & Surface Transport, Govt. of India) by the Purchaser (SAIL), as per prevailing

norms, and will not in any way limit the Purchaser's right to conclude contract on any of

the terms offered.

9.4 Firm Price: Prices finalized shall be firm during the Bidder's performance of the Contract

and shall not be subject to variation on any account.

9.5 Bid Quantity: Bidder would quote for the full tender quantity of 20,000 (Twenty

Thousand) Metric Tons ± 10% Quantity Variation.

a) Total Quantity Variation: SAIL can exercise an option of quantity variation upto +/-10%

of the order quantity. This option may be exercised by SAIL at the time of concluding an

agreement with the seller.

Shipping Tolerance (against shipped cargo): An option of ± 5% has been kept as

shipping tolerance against the shipped cargo quantity. The ± 5% shipping tolerance would

be at Purchaser‟s option in case of contracting on FOB(T) basis where the Purchaser

would arrange for vessel and at SELLER / PRODUCER‟s option in case of contracting on

C&F(FO) basis where the SELLER/PRODUCER would fix vessels.

10.0 Unit of Measurement (Weight and Currency):

For MANGANESE ORE offered, the price should be quoted per dry metric ton (DMT)

basis in US Dollars per 1% of Mn content.

11.0 Disclosure of particulars of Indian agent, if any:


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As a policy, SAIL would not like the foreign Bidders to appoint any Indian agents. In case

the Bidder has an Indian agent, they shall furnish the following details in their Techno-

Commercial offer:

i) The name and address of the Indian Agent

ii) The amount of commission / remuneration included in the FOB price(s) for such Indian

Agent is to be specified as a percentage of the FOB price.

iii) Confirmation of the Bidder that the commission / remuneration, if any, payable to his

Indian agent, shall be paid by SAIL in Indian Rupees.

iv) One agent cannot represent two suppliers or quote on their tender. In case one agent

represents two suppliers or quotes on their behalf in this tender, both the tenders

may be liable for rejection.

(Please also refer Part – V for Registration and other details)

12.0 Payment to Indian Agent:

In the event of an order materializing, the terms of payment will provide for payment of

the net value of the materials delivered in each consignment, after deduction of the amount

of the commission / remuneration, if any, payable to Indian agent which will under normal

circumstances, be released to the concerned Indian agent in equivalent Indian Rupees at

the exchange rate prevailing on the date of Bill of lading date, on the basis of weight

certified in the packing list of shipping document, 90 (ninety) days after the receipt and

acceptance of material at respective SAIL plants.

13.0 EMD/ Bid Bond :

13.1 Each bid should be accompanied by EMD/ Bid Bond in the form of a bank guarantee as

per Proforma-E as given in this RFQ, for an amount of US $ 10,000 (United States

Dollars Ten Thousand only) or INR 500,000 (Indian Rupees Five Hundred

Thousand only). No change in the prescribed proforma of the bank guarantee for Bid

Bond is acceptable. The Bid Bond should be established in favour of Steel Authority of

India Ltd., Bhilai Steel Plant and routed through „STATE BANK OF INDIA,

COMMERCIAL BRANCH, BHILAI‟ ON THE BASIS OF A COUNTER GUARANTEE

ISSUED BY BENEFICIARY‟S BANK.. The Bid Bond shall be kept valid and in full

force upto a period of 10 weeks from the last date of submission of bids (19.08.2014),

as stipulated herein above. The Bid Bond is required to protect the Purchaser against the

risk of Bidder's conduct which would warrant the security's forfeiture pursuant to Para 13.5

hereinbelow.

13.2 However, producers of Manganese Ore and CPSUs will be exempted from submission of

EMD/Bid Bond. Claims for exemption from submisison of EMD/ Bid Bond are to be

submitted by the bidders in a specific request-letter to be submitted along with

documentary evidence for the claim. SAIL’s decision in this regard will be final and

binding on the tenderer. Trading Houses / Traders / Suppliers / Agents etc., will not

be exempted from submission of EMD/ Bid Bond.

13.3 EMD/ Bid Bond (or claims for its exemption/waiver, as applicable) shall be submitted

in Part-1, as explained elsewhere in this RFQ. No request for adjustment of earlier dues in

place of Earnest Money shall be entertained.

13.4 A bid which is not accompanied by Bid Bond of requisite value shall be rejected by the

Purchaser.

13.5 Return of Bid Bond: Bid Bond of an unsuccessful Bidder will be returned to the Bidder

within 7 days of Award of Contract to the Successful Bidder. Bid Bond of the successful

Bidder (if submitted as per tender terms above) will be returned upon Signing of the


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Contract and furnishing the Performance Guarantee Bond, pursuant to Para 30 herein

below.

13.6 Forfeiture of Bid Bond: The Bid Bond shall be forfeited:

a) if a Bidder:

i) withdraws or modifies its Bid unilaterally after deadline of submission of bid or during

the period of Bid validity specified by the Bidder; or

ii) fails to submit the break-up of material price and ocean freight discharge separately, distinctly

and invariably after the Reverse Auction (RA) as per request of SAIL or its service provider. b) in the case of a successful bidder, if the Bidder fails to furnish Performance Guarantee

Bond in accordance with Para 30

14.0 Validity of the offer:

14.1 Each Bidder shall keep his techno-commercial bid & price bid valid for acceptance by

SAIL for minimum 60 (Sixty) days from the date of tender opening and price-bid firm.

However, in case of RA price bid shall be valid for minimum 30 (Thirty) days from the

date of price-discovery (through Reverse Auction or otherwise at the option of SAIL).

14.2 In exceptional circumstances, prior to expiry of the original Bid validity period, the

Purchaser may solicit the Bidder's consent to an extension of the period of Bid

validity. The request and the responses thereto shall be made in writing or by fax.

The validity of the Bid Bond provided under Para 13 shall also be suitably extended. A

Bidder may refuse the request without forfeiting its Bid Bond. A Bidder granting the

request will not be required nor permitted to modify its Bid.

15.0 Format for the Bid

The Bidder shall prepare the Bid in 3 envelopes i.e. EMD/Bid Bond & Integrity Pact (Part

I), Sealed Techno-Commercial Bid (Part-II) and Sealed Price-Bid (Part III). Individual

envelopes should be SUPERSCRIBED WITH TENDER ENQUIRY NO [RFQ No.],

PART-I/PART-II/PART-III, THE DUE DATE OF TENDER OPENING AND NAME OF

THE TENDERER. All these three envelopes should be further sealed in a bigger envelop

superscribed with Tender Enquiry No, due date of tender opening and name of the

tenderers and same should be submitted at ToC/MM deptt./BSP.

15.1 Failure to furnish correct and detailed information as called for, may render the concerned

Bid liable to rejection.

16.0 Statement of Deviations

16.1 The terms and conditions of the LoA shall be as incorporated in the Draft LoA given in

PART-IV of these Bidding Documents. The Purchaser solicits bids in conformity with the

terms and conditions, without any deviations. However, if any Bidder is unable to accept

any particular term as incorporated in the Draft LoA, or proposes any deviation

therefrom, the Bidder shall enclose alongwith his offer, a Statement of Deviations as

per proforma B given in this RFQ clearly spelling out the deviations proposed, which

will be evaluated in accordance with provisions of Para 23.3 to 23.6, hereinafter.

16.2 The Bidder shall submit his Bid confirming his acceptance to all the terms and conditions

of the RFQ, except for the deviations specifically proposed by him as Proforma-B

(Statement of Deviation) in his Bid.

D. SUBMISSION OF BIDS


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17.0 Sealing and Marking of Bids

17.1 The detailed offer together with its enclosures/ attachments should be submitted as per the

instructions for submission of Bid (Techno-commercial Bid as well as Price Bid).

18.0 Deadline for Submission of Bids

18.1 Bids must be submitted in Tender Box at ToC, Ispat Bhavan, BSP not later than 13:00

hrs (IST) on 19.08.2014.

19.0 The Purchaser may, at its discretion, extend this deadline for the submission of Bids by

amending/modifying the RFQ in accordance with Para 5, in which case, all the rights and

obligations of the Purchaser and Bidders previously subject to the deadline will thereafter

be subject to the deadline as extended.

20.0 Withdrawal of Bids

20.1 No Bid may be withdrawn in the interval between the deadline for submission of Bids and

the expiration of the period of Bid validity specified by the Bidder on the Bid Form.

Withdrawal of a Bid during this interval shall result in the Bidder's forfeiture of its Bid

Bond, pursuant to Para 13.6.

E. BID OPENING AND EVALUATION

21.0 Opening of Bids by Purchaser :

21.1 EMD and Techno-Commercial Bids (TCB) will be opened on the due date of tender

opening as per decision of the Purchaser (SAIL).

21.1.1 Post techno-commercial scrutiny of offers, if the Purchaser decides to conduct price-

discovery, only the Bidders whose offers are found to be techno-commercially acceptable,

shall be informed in writing (e-mail/fax) the date, time and mode of price-discovery, prior

to such price-discovery.

22.0 Clarification of Bids

To assist in the examination, evaluation and comparison of Techno-commercial Bids, the

Purchaser may, at its discretion, ask the Bidder for a clarification of the Bid. The request

for clarification and the response shall be in writing and no change in the price or

substance of the Bid shall be sought, offered or permitted.

23.0 Techno - Commercial Examination of Bids :

23.1 The Purchaser will examine the Bids to determine whether they are complete, whether any

computational errors have been made, whether required sureties have been furnished,

whether the documents have been properly signed, and whether the Bids are generally in

order.

23.2 Arithmetical errors will be rectified on the following basis. If there is a discrepancy

between the unit price and the total price that is obtained by multiplying the unit price and

quantity, the unit price shall prevail and the total price shall be corrected. If there is a

discrepancy between words and figures, the amount in words will prevail.


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23.3 Prior to the detailed evaluation, pursuant to Para 24, the Purchaser will determine the

substantial responsiveness of each Bid to the Bidding Documents. For purposes of these

paragraphs, a substantially responsive Bid is one which conforms to all the terms and

conditions of the Bidding Documents without material deviations. The Purchaser‟s

determination of a Bid‟s responsiveness is to be based on the contents of the Bid itself

without recourse to extrinsic evidence. The Purchaser‟s decision, whether the Bid is

substantially responsive or not, will however be final.

23.4 A Bid determined as not substantially responsive may be rejected by the Purchaser and

may not subsequently be made responsive by the Bidder by correction of the non-

conformity.

23.5 The Purchaser will determine to its satisfaction whether the Bidder is qualified to

satisfactorily perform the Contract. The determination will take into account the Bidder's

financial, technical and production capabilities / resources. It will be based upon

examination of the documentary evidence of the Bidder's qualification submitted by the

Bidder, pursuant to Para 21, as well as such other information as the Purchaser deems

necessary and appropriate. An affirmative determination will be a prerequisite for award

of the Contract to the Bidder. A negative determination will result in rejection of the

Bidder's Bid. Bidders may note that in case any dispute/claim is pending against a Bidder,

the Bid will not be considered for evaluation.

23.6 The Purchaser may waive any minor infirmity or non-conformity or irregularity in a Bid

which does not constitute a material deviation, provided such waiver does not prejudice or

affect the relative ranking of any Bidder.

24.0 Evaluation and Comparison of Bids: SAIL will conduct a two-stage evaluation of the

bids submitted by the suppliers:

Stage 1: TECHNO-COMMERCIAL EVALUATION

The techno-commercial evaluation will be used to assess supplier‟s capability and ability

to supply. This assessment will be based on:

Information furnished by the supplier for his operations (e.g. company background,

financial and other details).

After the techno-commercial evaluation, a list of eligible suppliers will be made for the

second stage of evaluation (price-discovery and order finalisation).

Stage 2: PRICE DISCOVERY & EVALUATION:

L-1 Definition :

The PURCHASER will evaluate & compare the bids through the process of price-

discovery, either ONLINE by conducting Reverse Auction among the bidders through its

Service Provider i.e. M/s Mjunction Services Ltd. OR otherwise by opening of sealed

price-bids. Bidders whose techno-commercial bids are found to be acceptable by the

PURCHASER will be eligible to participate in the process of price-discovery. The price-

bids shall be quoted on C&F(FO) single port basis and shall be evaluated on C&F

(FO) single port basis. The prices shall be evaluated per USD per DMT per 1% Mn

content

In case of payment terms other than that stipulated in the tender (e.g. 100% against LC at

sight or any other payment terms), if quoted by the tenderer and accepted thereon by SAIL,

loading will be done with interest at the SBI CC rate for 60 days for evaluation purpose.


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NOTE: However, the PURCHASER shall have the option to conclude the Agreement

with selected Bidder either on C&F (FO) or FOB(T) or part FOB(T) and part C&F(FO)

basis. Therefore, post Reverse Auction (RA), the bidders must give the break-up of material price

and ocean freight for single port discharge separately, distinctly and invariably failing submission of which Bid Bond/EMD will be forfeited.

25.0 CONTACTING THE PURCHASER

25.1 Subject to para 22 , no Bidder shall contact the Purchaser on any matter relating to its Bid

from the time of the Bid opening to the time the contract is awarded.

25.2 Any effort by a Bidder to influence the Purchaser in the Purchaser's Bid evaluation, Bid

comparison or contract award decision may result in the rejection of the Bidder's Bid.

26.0 Award Criteria:The Purchaser will award the contract to the successful Bidder whose Bid

has been determined to be substantially responsive and qualified to satisfactorily perform

the contract and their Bid is determined as the lowest Bid discovered in accordance with

Para 24.

27.0 Purchaser's Right to accept any Bid and to reject any or all Bids:

The Purchaser reserves the right to accept any Bid in full or in part or reject any Bid, and

to annul the bidding process and reject all Bids at any time prior to award of Contract,

without thereby incurring any liability to the affected Bidder or Bidders or any obligation

to inform the affected Bidder or Bidders of the grounds for the Purchaser's action.

28.0 Letter of Acceptance (LOA) and back up P O:

28.1 The Purchaser will notify the successful Bidder by a Letter of Acceptance (LOA) in

writing (fax/registered letter) that its Bid has been accepted. Such intimation may also be

sent by an e-mail along with the scanned copy of LOA issued to the successful bidder.

28.2 Letter of Acceptance (LOA) will constitute the formation of the Contract. Bhilai Steel

Plant(BSP), SAIL shall issue suitable LOA based on which within 15 days, CFP shall issue back-up Purchase Order indicating the consignee, Paying Authority, Delivery Schedule, Submission of bills etc. Supplies to CFP may be effected as per their advice and payment shall be released by CFP.

28.3 The terms and conditions of the back up P O shall be in accordance with the draft of the

LoA for supply of Manganese Ore as incorporated in PART-IV of this tender Document.

28.4 Back up P O placed on successful tenderer shall mention the purchaser‟s preferred

specification along with absolute limits as specified in Annexure II of RFQ, along with

other terms and conditions of tender.

30.0 Performance Guarantee Bond:

30.1 Within fifteen (15) days from the date of the back up order, the successful Bidder should

furnish Performance Guarantee (PG) Bond in the form of a bank guarantee as per

proforma vide Annexure IV to PART-IV of these Bidding Documents, for an amount

covering 3% (Three percent) of the contract value of Manganese Ore covered by the

aforesaid Agreement. No change in the prescribed proforma of the bank guarantee for PG

Bond is acceptable. The PG Bond should be established in favour of SAIL/CFP,

Chandrapur(MAHARASHTRA), and routed through any Bank listed at Annexure-VI having

branch at Chandrapur on the basis of a Counter Guarantee issued by Beneficiary‟s Bank. and


13

should be received in the office of SAIL/BSP within 15 (fifteen) Banking Days from the

date of Agreement.

30.2 The PG Bond shall be kept valid and in full force and effect from the date of P O till a

period of 4 (four) months from the date of delivery of the last consignment under the P O.

For this purpose, the date of the Bill of Lading shall be the date of delivery in respect of

the consignment.

30.3 In the event of the failure of the successful Bidder to furnish PG Bond in the

prescribed form and/or within the stipulated time, SAIL shall have the right to forfeit

the Bid Bond – if applicable and furnished by the Bidder, without prejudice to

further recourse for breach of the Agreement. In such an event the Purchaser may

make award to the next Bidder or may invite fresh Bids.

30.4 RECOVERY OF SUMS DUE : Whenever under this acceptance to tender, any sum of

money is recoverable from & payable by the SELLER/PRODUCER, the Purchaser shall

be entitled to deduct such sum from any amount then found payable to the SELLER/

PRODUCER by the Purchaser or which at any time thereafter may be found to be payable

to the SELLER/PRODUCER by the Purchaser under this or any other acceptance to tender

with the purchaser or any other unit of Steel Authority of India Ltd.(SAIL). Should this

sum be not sufficient to cover the full amount recoverable, the SELLER/PRODUCER

shall pay to the Purchaser on demand the remaining balance amount. This action is without

prejudice to the right of the Purchaser to take legal action against the

SELLER/PRODUCER for the breach of the acceptance to tender.


14

Part – III

PROFORMA-A

PROFORMA FOR LETTER OF AUTHORITY, FOR THE AGENT,

FROM THE PRODUCER OF MANGANESE ORE

No......

dated.........

Executive Director (MM)

Steel Authority of India Limited

Bhilai Steel Plant

3rd

Floor, ISPAT BHAVAN,

Bhilai 490001 (C G)

INDIA

Dear Sir,

Sub: Your Global tender No. SAIL/BSP/MN ORE/I/2014 dated 12.07.2014

We (Name & Address of the producer) ………………………..an established and reputed Manganese Ore

producer (mine owner) of ………….…(Place) owning ………..…..(Name of Mine) Manganese Ore mine(s) do

hereby authorize M/s ………………………….. (Name and address of Supplier) to make an offer in response to

the subject tender and to negotiate & co-ordinate on our behalf for placement of order.

No company/firm or individual other than M/s .............................. (Name of the Supplier) is/will be authorised to represent us in regard to this specific Bid. We stand full Guarantee & Warranty for the quality of material offered by our authorized agent against the subject Tender.

Yours faithfully,

(NAME)

for & on behalf of M/s…………….

(Name & Address of the Manganese Ore producer)

Note: This Letter of Authority should be on the Letter- Head of the producer of MANGANESE ORE and should be signed by

the person competent and having the power of attorney. This Letter of Authority should be submitted in original along with the

offer.


15

PROFORMA B

Sub: Global Tender Notice No. SAIL/BSP/MN ORE/I/2014 dated 12.07.2014

(Please see Para 16.1 of Instructions to Bidders)

STATEMENT OF DEVIATION FROM SPECIFICATIONS AND BID TERMS

1) The following are the particulars of deviations from the requirements of the bidding terms

and conditions, specifications and Draft Agreement.

CLAUSE/PARA DEVIATION REMARKS

(including justification)

We, hereby, declare that there are no deviations from the tender terms and conditions other than

those mentioned above.

Dated -

Signature and seal of

the Bidder

NOTE: Where there is no deviation, the statement should be returned duly signed with an endorsement indicating "No

Deviations"


16

PROFORMA-C

GLOBAL TENDER NO. SAIL/BSP/MN ORE/I/2014 dated 12.07.2014

PROFORMA FOR SHIPPING/LOADPORT DETAILS (To be Filled in and submitted by the Bidder with Part III (Techno-Commercial) Bid)

1. Details of The Bidder:

Name of the Bidder Address

2. Details of Manganese Ore offered:

Mn Ore Grade Quantity

(Metric

Tonnes)

% Mn Shipment

Schedule

Brand/ Name of

Mn Ore, if any

Country of

Origin of Mn

Ore

Stowage

Factor of Mn

Ore offered

Grade-II

(Preferred Mn-

content: 42%

Min.)

3. Details of Loadport from which shipment of Manganese Ore offered as per 2 above:

Name of Loadport/

Alternate Loadport

Geographical Location

and Country

ISPS Conformity

(Yes/No)

Amount of Taxes/Levies/ Dues, if

any, payable by shipowners

(in US Dollars)

4. Details of Handling facilities at the Loadport as per 3 above:

Restrictions w.r.t.

Vessel type &

dimensions/size, if any

Loading facilities

(Automatic/Manual

shiploaders, shore grabs, etc.)

Clearance dimensions of

Manganese Ore loading

Gantries

Sailing Draught

(in metres)

The bidder agrees to comply with the International Ship and Port facility Security (ISPS) Code stipulated by the International

Maritime Organisation, which has come into effect w.e.f. 1st July’2004. Failure on the part of the bidder to comply with the

ISPS Code’s requirements and/or the Loadport not conforming with the ISPS Codes as stated in Clause 2.1 hereinabove and

any delays caused by such failures shall be to the bidder’s account.

NAME & SIGNATURE OF

THE AUTHORISED

SIGNATORY OF THE BIDDER

(NAME OF THE BIDDER)


17

Proforma D

GLOBAL TENDER NO. SAIL/BSP/ Mn Ore/I/2014 Dated 12.07.2014

REFERENCE PROFORMA FOR PRICE BID (NOT TO BE SUBMITTED ALONG WITH TECHNO-COMMERCIAL BID)

With the help of this format, please specify the FOB(T) price and ocean freight for single port

discharge of material

1. Details of Price quoted per Dry Metric Tonne (DMT) in US $ per 1% Manganese content (in

figures as well as in words):

Mn Ore Grade FOB (T) % Mn Port of

Loading

Ocean Freight

(Single Port Vizag/

Gangavaram)

C & F (FO)

Single Port

Grade-II

(Preferred Mn-content:

42% Min.)

Note:

1. Break-up of material price and ocean freight for single port discharge should be indicated separately, distinctly and

invariably.

Post price-discovery, SAIL reserves the right to conclude the Agreement(s) with single/multiple source(s) on: - FOB(T) basis, and/or - C&F(FO) basis, and/or - part FOB(T) and part C&F(FO) basis SAIL also reserves the right to receive the Manganese Ore at any of the stated discharge ports viz. Gangavaram/ Vizag.

The price discovered and finalized (through RA or otherwise) shall remain FIRM till completion of delivery of the full Order Quantity.

NAME & SIGNATURE OF

THE AUTHORISED

SIGNATORY OF THE BIDDER

(NAME OF THE BIDDER)


18

PROFORMA-E

Global Tender No. SAIL/BSP/MN ORE/I/2014 dated 12.07.2014

PROFORMA OF BANK GUARANTEE FOR BID BOND

(TO BE ESTABLISHED THROUGH ANY NATIONALISED INDIAN BANK OR THROUGH BRANCH OF A FOREIGN BANK OPERATING

UNDER RULES OF RESERVE BANK OF INDIA)

To,

STEEL AUTHORITY OF INDIA LIMITED

Bhilai Steel Plant

3rd Floor, ISPAT BHAVAN,

Bhilai 490001 (C G)

INDIA

Bank Guarantee No.

Dated:

LETTER OF GUARANTEE

WHEREAS Steel Authority of India Limited (hereinafter referred to as SAIL) have invited bids

vide Global Tender No. SAIL/BSP/MN ORE/I/2014 dated 12.07.2014 (hereinafter referred to as the

said Invitation to Bid) for purchase of 20,000 (Twenty Thousand) metric tonnes ± 10% Quantity Variation

at the option of SAIL and ± 5% Shipping Tolerance, of imported Manganese Ore.

AND WHEREAS the said Invitation to Bid requires that any eligible Bidder wishing to make an

offer in response thereto shall establish an irrevocable Bid Bond in favour of SAIL in the form of a Bank

Guarantee of US $ 10,000 (United States Dollars Ten Thousand only) / Indian Rs. 500,000

(Indian Rupees Five Lakh only ),valid upto ten weeks from last date of submission of offer, as

a guarantee that the bidder:

(a) shall keep his offer firm and valid for acceptance by SAIL for 60 (Sixty) days from the date of

tender opening.

(b) shall, in the event of the conclusion of LOA, establish a Performance Guarantee (PG) Bond in

favour of SAIL, in the form of a Bank Guarantee for an amount covering 3% (Three percent) of the

contract value of Manganese Ore covered by the aforesaid LOA, at the price and on the terms

accepted by SAIL, within 15 (fifteen) days from the date of the LOA.

(c) shall, in the event of the conclusion of an Agreement, keep this Bid Bond valid till such time that a

PG Bond is established as per the provisions of the Agreement.

AND WHEREAS Messrs_______________________________________ (hereinafter referred to

as the said Bidder) wish to make an offer in response to the said Invitation to Bid for the supply of of

Manganese Ore on the basis of FOB (Trimmed) named port(s) of loading/C&F(FO) Vizag/Gangavaram

ports.


19

NOW THIS BANK HEREBY GUARANTEES that in the event of the said Bidder failing to abide

by any of the conditions referred to in any of the preceding paragraphs, this Bank shall pay to Steel

Authority of India Limited (SAIL), BSP on demand without SAIL having to substantiate its demand, and

without protest or demur US $ 10,000 (US Dollars Ten thousand only) /Indian Rs. 500,000 (Indian

Rupees Five Hundered Thousand only). This Bank further agrees that the decision of SAIL as to

whether the said Bidder has committed a breach of any of the conditions referred to in the preceding

paragraphs, shall be final and binding, not withstanding, Bidder having any claim or dispute.

THIS BANK FURTHER undertakes that this Guarantee shall remain irrevocably valid and in force

initially upto ………………….. and that the same shall be extended further according to the provisions

contained hereinabove.

For and on behalf of

____________________

(Name of the Bank)

Signature:

Name: ( )

Duly Constituted Attorney

and Authorised Signatory

Designation :

Name and Address of the Bank :

.


20

PART-IV

(GLOBAL TENDER NO. SAIL/BSP/MN ORE/I/2014 dated 12.07.2014

DRAFT OF LoA FOR THE SUPPLY OF MANGANESE ORE ON THE BASIS OF

FOB (TRIMMED) NAMED PORT(S) OF LOADING

OR

C&F (FO) GANGAVARAM / VIZAG

To, M/s ____________ ____________ Sub. : Supply of Mn Ore to SAIL/CFP. Ref. : Your offer no._____________. Dear Sir,

We are pleased to place Letter of Acceptance for the supply of Mn Ore to SAIL / CFP as

per the specifications, terms and conditions of our GLOBAL TENDER NO.

SAIL/BSP/MN ORE/I/2014 dated 12.07.2014. Back up order shall be issued by

SAIL/CFP as per following:

CLAUSE - 1: MATERIALS QUANTITY, QUALITY AND DELIVERY PERIOD:

Material Quantity: 1.1 The SELLER/PRODUCER shall sell and the PURCHASER shall buy a total quantity of

___________ (______________________) metric tonnes subject to a Quantity Variation

of plus or minus 10% (Ten percent) and a shipping tolerance of plus or minus 5% (Five

percent) at ___________option, of ______ Manganese Ore, in conformity with the

Technical Specifications incorporated in Annexure-II and which shall constitute an

integral part of this LoA, for use in SAIL/CFP, Chandrapur for production of ferro-alloys.

The quality of the Materials to be supplied under this LoA shall under no circumstances

be inferior to the Technical Specifications as contained in Annexure-II to this LoA.

Note: The ± 5% shipping tolerance would be at Purchaser’s option in case of FOB(T) contract where the Purchaser would fix vessels and at Seller / Producer’s (Mine owner) option in case of C&F(FO) contract where the Seller / Producer (Mine owner) would fix vessels.

Material Quality:

1.2 The seller/producer shall ensure that the material supplied is in strict conformance to the

stipulated specifications of the tender.

Material Delivery Period:

1.3 For the purpose of this Agreement, the delivery period shall be within 30 (thirty) days.

CLAUSE - 2: PRICE:

2.1 The price of the MATERIALS shall be US $ _____________(US

Dollars___________________) per dry metric ton (DMT) (of one thousand kilograms

each) per 1% Mn, Free on Board (Trimmed). Port of Loading will be _____________.


21

2.1.1 In case of C&F (FO) agreement at PURCHASER‟S option, ocean freight shall be payable

at US $ _____________(US Dollars___________________) per dry metric ton (DMT) on

the entire Invoice Weight relating to the shipment in respect of which the PURCHASER

exercises such option.

2.2 The price shall be firm and shall not be subject to any escalation for any reason,

whatsoever, until the completion of delivery of the entire AGREEMENT quantity.

2.3 The payment of the price of the MATERIALS delivered by the SELLER/PRODUCER

under this Agreement shall be made by the PURCHASER in US Dollars by means of an

Irrevocable Letter of Credit providing for payment of the 80% of the contract value (FOB-

T and/or C&F-FO as the case may be) of the material (excluding full Indian agent‟s

commission) at sight on presentation of the documents and balance 20% contract value

shall be made after receipt and acceptance of material at SAIL CFP Stores.

To facilitate processing of the documents, the SELLER/PRODUCER shall fax the

documents mentioned in Para 5.2.1 to 5.2.7 of Annexure I of the Agreement to the

PURCHASER.

The documents referred to hereinabove should be delivered by fax/e-mail at the following

address:

Executive Director Chandrapur Ferro Alloy Plant

Chandrapur 442401 (Maharashtra)

INDIA

. e-mail: [email protected]

All bank charges at the SELLER/PRODUCER'S end shall be borne and paid for by the

SELLER/PRODUCER. All bank charges at the PURCHASER'S end shall be borne and

paid for by the PURCHASER.

CLAUSE - 3: GENERAL CONDITIONS OF AGREEMENT (GCA):

This LoA is subject to the terms and conditions contained in the General Conditions of

Agreement (hereinafter referred to as "GCA") annexed to this LoA (Annexure-I) which

shall form an integral part of this LoA. In case of any conflict between GCA and any

provision of this LoA, the provision contained herein shall prevail over "GCA".

CLAUSE - 4: PERFORMANCE GUARANTEE BOND:

4.1 The SELLER/PRODUCER shall establish a Performance Guarantee Bond in the

prescribed proforma (Annexure-IV to the LoA), to be received in the office of the

PURCHASER within 15 (fifteen) Days from the date of this LoA, for an amount covering

3% (three percent) of the contract value of the quantity of ________

(____________________) metric tons of MATERIALS, covered under this LoA, in

favour of the PURCHASER. The Performance Guarantee Bond (PG Bond) established by

the SELLER/PRODUCER in favour of the PURCHASER through the bank defined during

issue of formal Purchase Order and routed through any Bank listed at Annexure-VI having

branch at Chandrapur on the basis of a Counter Guarantee issued by Beneficiary‟s Bank, for

US$ ______ (US Dollars ________________________only) valid upto _______________

, shall be amended by the SELLER/PRODUCER as and when an amendment to this LoA

is issued. Within 15 (fifteen) days from the date of such amendment to this LoA, the


22

SELLER/PRODUCER shall arrange to carry out an amendment to the PG Bond making

the same valid for the LoA as amended.

4.2 The aforesaid PG Bond established by the SELLER/PRODUCER in favour of the

PURCHASER for the due, timely and satisfactory performance and fulfilment of all the

SELLER/PRODUCER'S obligations under this LoA in all respects, shall remain in full

force and effect during the entire period required for satisfactory performance and

fulfilment of the LoA by the SELLER/PRODUCER in all respects and shall continue to be

in full force and effect for a period of 3 (three) months from the date of Bill of Lading of

the last consignment of MATERIALS under this LoA or in the event of any dispute (s)

between the PURCHASER & the SELLER/PRODUCER, until such period the dispute (s)

is settled fully, whichever date is later.

CLAUSE - 5: COMPLIANCE TO ISPS CODE:

The SELLER/PRODUCER has agreed to comply with the International Ship and Port

Facility Security (ISPS) code stipulated by the International Maritime Organisation, which

has come into effect w.e.f 1st July 2004. Failure on the part of the SELLER/PRODUCER

to comply with the ISPS code‟s requirements and/or the Loadport not conforming with the

ISPS code and any delays caused by such failures shall be to SELLER/PRODUCER‟S

account.

CLAUSE - 6: LEGAL ADDRESS OF PARTIES:

REGISTERED OFFICE


ISPAT BHAWAN,

LODI ROAD,

P.B. NO. 3049,

NEW DELHI-110003,

INDIA

ADDRESS FOR CORRESPONDENCE

1. Purchaser:


CHANDRAPUR FERRO ALLOYS PLANT,

CHANDRAPUR-110 092 (MAHARASHTRA).

INDIA

2. Purchaser’s Shipping Division:

STEEL AUTHORITY OF INDIA LIMITED,

BRANCH TRANSPORT AND SHIPPING OFFICE,

HARBOUR APPROACH ROAD

VISAKHAPATNAM-530035. INDIA

CLAUSE - 7: The follwing Annexures shall form an Integral part of back up Purchase

Order:

ANNEXURE-I: GENERAL CONDITIONS OF AGREEMENT (GCA)

ANNEXURE-II: TECHNICAL SPECIFICATIONS


23

ANNEXURE-III: TERMS AND CONDITIONS FOR DELIVERY OF THE MATERIALS ON THE

BASIS OF FOB (TRIMMED) PORT(S) OF LOADING

Or

TERMS AND CONDITIONS FOR SHIPMENT OF THE MATERIALS ON THE

BASIS OF C&F (FO) GANGAVARAM/ VIZAG

ANNEXURE-IV: PROFORMA OF BANK GUARANTEE FOR PERFORMANCE BOND

Signature:

Name:

Designation:

Company: SAIL/BSP

Place: Bhilai India


24

ANNEXURE-I

GENERAL CONDITIONS

PARA 1: SAMPLING AND ANALYSIS:

1.1 The SELLER/PRODUCER shall, at his own expense, arrange to carry out the

sampling and analysis of the MATERIALS through the independent inspection

agency, at the loadport / as agreed to between the SELLER/ PRODUCER and

the PURCHASER from among the following:

a) M/s A.H. Knight b) M/s Lloyds c) M/s NKKK d) M/s BVQI e) M/s TUV NORD

.

1.2 i. The PURCHASER may, at his option and at his own expense, depute his

representative(s) to witness the sampling and analysis by the 3rd

pary independent

inspection agency at the loadport and may also obtain a part of the Loadport sample for

testing. The SELLER/PRODUCER(MINE OWNER) shall provide necessary

assistance in this regard to the PURCHASER'S representative(s).

ii. SUPPLIER shall organize the materials for inspection by the Independent Inspection Agency as above and shall render all assistance in this regard to the above nominated agency.

iii. MATERIALS as per specification and passed by the above Independent Inspection

Agency only will be shipped.

iv. The load port quality inspection analysis and acceptance of materials by the above nominated agency will be final for the purpose of payment with regard to all technical parameters stipulated in the Technical Specifications.

v. The inspection and supervision of loading charges payable to the above nominated

agency shall be borne by the SUPPLIER.

vi. The SUPPLIER shall ensure that the materials shipped conforms to the ordered quality and specification and shall not ship materials which do not conform to the ordered quality and specifications.

vii. The Independent Inspection Agency shall also perform the following at the load port:

a. Collection of samples in association with the Supplier/Producer of Manganese Ore.

b. Analyze the samples as per the International Standard methods or as prescribed in the Order and such analysis certificate shall form part of the documents for release of payment.

c. Certificates of quantity and quality issued by the Independent Inspection Agency shall be countersigned by the supplier.

d. On completion of the inspection of the material for each shipment, a Certificate of inspection, sampling, weight and quality shall be issued by the Independent Inspection Agency to the PURCHASER and the SUPPLIER and to others as may be notified.


25

e. To keep proper supervision of the shipment so as to ensure that the PURCHASER does not incur any loss on any account whatsoever in the supervisory operations at the loading port and the material is shipped strictly as per the Order.

f. Ensure sealing of the container after loading of the material in the container and also indicate the seal no. in the inspection certificate.

1.3 THIRD PARTY CERTIFICATE: The SELLER/ PRODUCER(MINE OWNER) shall furnish to the PURCHASER the 3

rd

Party Certificate of Sampling and Analysis issued by the independent inspection agency

indicating the Technical specification indicated at Annexure – II (Part – IV)

Quality / Quantity analysed by Independent Agency and the 3rd

Party Certificate of

Sampling and Analysis shall form the basis for payment to the SELLER/PRODUCER for

the shipped cargo.

1.4 Utmost precaution shall be exercised by the SUPPLIER at the time of shipment of each

consignment to ensure that the Specifications stipulated in Annexure –II (Part – IV) of the

agreement are strictly complied with.

1.5 For the purpose of this contract, the results of sampling & analysis of the MATERIALS

carried out by the 3rd

party independent inspection agency shall be final.

1.6 Seller shall ensure delivery as per agreed specifications. Material beyond absolute limits of

specifications will be considered rejected.

No bonus/increment will however be applicable for improvement in specifications

observed over the values offered and guaranteed by the SELLER/PRODUCER(MINE

OWNER) under Col. 3 of Annexure-II to the Agreement.

PARA 2: CHARGEABLE WEIGHT:

2.1 THE SUPPLIER shall, at his cost, determine the weight of the materials delivered at the

port of loading by means of draught survey which shall be conducted by the independent

Inspection Agency at the loadport, who shall issue the Certificate of Loadport Draught

Survey Weight. Similarly, the weight of the materials delivered at the port of discharge

will also be determined at the Destination Port Draught Survey which shall be done at the

cost of the buyer.

2.2 The 3rd party Inspection Agency Invoice Weight for each consignment shall be accepted

as final, if the destination Port Draught Survey weight for that consignment is within (-)

0.5 % of the Supplier‟s Invoice weight . If the destination weight is found to be more than

the Invoice weight, the payment shall be restricted up to the Invoice weight. In case the

destination weight is found to be less and the difference with the Invoice weight is found

to be more than 0.5% of the Invoice weight, the destination weight shall be final for the

purpose of payment.

PARA 3: QUALITY VARIATIONS MATERIAL DIFFERENCES:

If during any period during the currency of this Agreement, there are deviations from the

quality stipulated in Annexure-II to this Agreement or there are material differences in the

analysis results and/or weight determined at the loading port and at the PURCHASER's

end, the PURCHASER and the SELLER/PRODUCER shall meet to investigate the

reasons for such discrepancies in order to reach a mutually agreeable solution. If no


26

mutually agreeable solution is reached, the decision of the Purchaser in this regard shall be

final & binding.

PARA 4: INSURANCE:

Intimation for Insurance: The PURCHASER shall, at his own expense, arrange for suitable

marine insurance cover for the MATERIALS delivered by the SELLER/PRODUCER.

For this purpose, the SELLER/PRODUCER shall, immediately on completion of loading

intimate to the PURCHASER by Fax No. +91 7172278002 or e-mail:

[email protected]/[email protected], the Agreement number, the port

of loading, the name of the vessel, the quantity of the MATERIALS loaded on board the

vessel as per Loadport Draught Survey Weight and Approximate value thereof, the Bill of

Lading number and date,the date of sailing of the vessel, the name of the destination port

and the expected date of arrival of the vessel at the destination port. In case the intimation

is sent by Fax, the SELLER/PRODUCER shall fax the message twice to ensure clear

receipt of the message by the PURCHASER.

PARA 5: TERMS OF PAYMENT:

5.1 The Purchaser, after receipt of requisite Performance Guarantee Bond, shall establish

Letter of Credit (LC) in favour of the beneficiary (Seller) - with a validity of 90 days both

for shipment and negotiation - covering to the extent of:

the total value of the quantity of MATERIAL in case of supplies on FOB(T) terms;

total value of the quantity of MATERIAL including FREIGHT in case of supplies

on C&F terms.

Payment shall be based on 3rd

party load port inspection report on the basis of percentage

Mn content rounded off up to 2nd

decimal.

All Bank charges outside India shall be borne by seller and paid for by the SUPPLIER. All

Bank charges within India shall be borne by Purchaser & paid for by the PURCHASER.

Letter of Credit established by the Purchaser in favour of the SELLER/PRODUCER under

this Agreement shall provide for the following -

5.3 Payment of 80% of each shipment, excluding full Indian Agents Commission, shall be

made by the PURCHASER as per 3rd

party Inspection Agency‟s Sampling & Analysis

Report and balance 20% FOB(T) value shall be made post settlement of

demurrage/dispatch money claims. The 3rd

party Sampling & Analysis Report shall be

final & binding for all parameters of the specification indicated in Annexure II of Part IV

of the RFQ. Inspection certificate (in original) issued by either of the following Third

Party Inspection agencies shall be required to be submitted :

(i) M/s A H Knight

(ii) M/s Lloyds

(iii) M/s NKKK

(iv) M/s BVQI

(v) M/s TUV NORD

Payment of the value of each shipment shall be made by the Purchaser in US Dollars on

presentation of the following documents by the SELLER/PRODUCER to the negotiating

banker, at sight.


27

5.2.1 2/3 sets of original clean on Board Bill(s) of lading made out to order and blank endorsed

marked notify “STEEL AUTHORITY OF INDIA LTD., CHANDRAPUR FERRO

ALLOYS PLANT, CHANDRAPUR - 110092, INDIA”. The bills of lading must be issued

in “CONGENBILL FORM” only.

Note : Charter Party Bill(s) of Lading marked "freight Pre-paid as per Charter Party" (in case of C&F(FO) basis) or

“freight payable as per Charter Party” (in case of FOB(T) basis) will be acceptable.

5.2.2 Signed commercial Invoice for 100% value of each shipment in quadruplicate.

5.2.3 Certificate of sampling and analysis issued by the 3rd

Party independent Inspection Agency

specifying that the Sampling & Analysis pertains to the Manganese Ore loaded on the

vessel - in duplicate. On no account, the Analysis result of any property shall exceed the

maximum/ minimum / tolerance limit stipulated in Annexure II of the RFQ.

5.2.4 Certificate of origin issued by Chamber of Commerce or a similar authorized agency –in

duplicate.

5.2.5 Load port draught survey weight certificate issued by Independent Inspection Agency at

load port-in triplicate.

5.2.6 SELLER/PRODUCER(MINE OWNER)‟s certificate in quadruplicate confirming that

(a) One Negotiable alongwith four non-negotiable copies of Bill of Lading

(b) Two non-negotiable copies of Commercial Invoice

(c) Six copies of the certificate of 3rd

Party Sampling and Analysis Report

(d) Two copies of the certificate of origin

(e) Two copies of Loadport Draught Survey Weight Certificate

(f) Copy of SELLER/ PRODUCER‟s Email/ Fax advice of shipment to the Purchaser have

been sent through Courier service direct to the Purchaser within 7(seven) days from the

date of Bill(s) of Lading.

5.2.7 Copy of SELLER/PRODUCER‟s Email/ Fax advice of shipment to the Purchaser - in

quadruplicate.

5.2.8 Within 7(seven) days from the date of Bill(s) of Lading in respect of each consignment,

the SELLER/PRODUCER(MINE OWNER) shall send through courier service direct to

the Purchaser, the following documents in respect of each shipment -

(a) One Negotiable copy of the Bill of Lading alongwith four non-negotiable copies

(b) Two non-negotiable copies of Commercial Invoice

(c) Six copies of the 3rd

Party Certificate for Sampling and Analysis of material

(d) Two copies of the Certificate of Origin

(e) Two copies of Loadport Draught Survey Weight Certificate

(f) Copy of SELLER/PRODUCER‟s Email/Telex/Fax/cable advice of shipment to the

Purchaser

The SELLER/PRODUCER shall e mail/FAX copies of signed Bills of Lading,

Commercial Invoice, 3rd

Party Certificate of Sampling and Analysis, Certificate of Origin

and Load Port Draft Survey Certificate, SELLER / PRODUCER‟s certificate and

SELLER/PRODUCER‟s advice to shipment to the PURCHASER at the following fax

number +91 7172278002 or e-mail: [email protected]/

[email protected], with the scanned documents within 5 working days after the Bill

of Lading Date.

5.3 Payment of the Balance 20% On CAD basis after receipt of acceptance of material at

respective CFP Stores along with documents. a) Signed Commercial Invoice claiming 20% value of each shipment of the MATERIAL

based on the 3rd

Party Sampling & Analysis certificate.

b) Fax/e-mailed copy of the 3rd

Party Sampling & Analysis issued by the independent

inspection agency at loadport / as per the agreement between the seller and the purchaser.


28

c) Certification from the Seller that veseel laytime calcualtions and corresponding

demurrage/dispatch money claims, if any have been settled fully and clearly with

SAIL/T&S (shipping Division of the Purchaser) for the subject shipment.

PARA 6: DELIVERY:

6.1 The period of delivery is of the essence of the Agreement. The date of the Bill of Lading

shall be the date of delivery in respect of the shipment.

6.2 Immediately after submission of the PG Bond by the Seller as per Annexure –IV of the

agreement:

In case of FOB(T) Agreement, the PURCHASER shall arrange for chartering

suitable vessels for taking delivery of the MATERIALS on the basis of FOB

(Trimmed) port of Loading. The PURCHASER shall accordingly endeavour to

place the vessel at the loadport for taking delivery of the consignment of the

MATERIALS as per the agreed delivery schedule.

In case of C&F(FO) Agreement, the SELLER/PRODUCER shall charter suitable

vessel and ship the materials as per the agreed delivery schedule.

6.3 The SELLER/PRODUCER(MINE OWNER) shall take necessary steps to ensure that

sufficient quantity of the MATERIALS is ready for delivery at the loadport as to enable

nomination of vessels for shipment in line with the agreed delivery schedule so that the

offtake of the Agreement quantity is completed as per schedule.

6.4 To facilitate smooth nomination of vessels, the SELLER/PRODUCER may indicate stem

availability with proposed laydays and quantity, at least 3 (three) weeks in advance.

The PURCHASER shall endeavour to nominate vessels accordingly. The

SELLER/PRODUCER may, however, accept vessels with minor changes in laydays and

quantities.

6.5 The terms of delivery of the MATERIALS shall be as per Annexure –III, which shall

constitute the integral part of the P O.

6.6 For any delay in clearance at the port of destination on account of non-supply of shipping

documents in time and/or due to faulty documents, the SELLER/PRODUCER would be

held responsible for any demurrage, port rent etc. which the PURCHASER may become

liable to pay to the concerned authorities at the discharge port(s) in India.

PARA 7: LIQUIDATED DAMAGES:

In event of supply not being effected within the contractual delivery schedule liquidated damages

@l%, not by way of penalty, of the value of the materials without taxes, duties & freight, per

month of delay or part thereof, subject to maximum of 5%, is recoverable from the supplier

without prejudice to the rights of Purchaser to procure the balance material at the risk and cost of

the supplier. The payment or deduction of such damages shall not relieve the Supplier from the

contractual obligations to complete the supply or balance portion thereof in time as stipulated in

the Contract.

PARA 8: RISK PURCHASE:

If the Supplier fails to deliver the stores either in full or in part, within the prescribed delivery

period, the Purchaser shall be entitled at his option to take alternate procurement action, at the risk

& cost of the supplier for the unsupplied portion of the goods / items for which delivery has

expired without cancelling the contract in respect of the stores not yet due for delivery, or to cancel

the contract based on progress of work, including stores not due for delivery, and, if thought


29

fit/necessary, to purchase the stores at the risk and cost of the Supplier. The price differential in

case of higher cost to SAIL if any, shall have to be borne by the defaulting supplier. Moreover the

defaulting supplier shall have no claim over the quantity, which they failed to supply

PARA 9: TERMINATION: If the SUPPLIER commits breach of any provisions of the Agreement, the PURCHASER shall

notify the SUPPLIER to remedy such breach within a reasonable period. If breach continues to

occur, the PURCHASER shall have the right to terminate the Agreement.

PARA 10: RESPONSIBILITY:

The PURCHASER on the one hand and the SUPPLIER and the PRODUCER jointly and severally

on the other hand shall be responsible for the performance of all their respective obligations under

this Agreement. The expression SUPPLIER wherever appearing in this Agreement shall also

include PRODUCER.

PARA 11: TRANSFER AND SUB-LETTING:

11.1 The SUPPLIER shall not sublet, transfer, assign or otherwise part with the Agreement or any part

thereof, either directly or indirectly, without the prior written permission of the PURCHASER.

11.2 The SUPPLIER shall be entirely responsible for the execution of the Agreement by the

subcontractor, if any, permitted by the PURCHASER. For this purpose, the SUPPLIER shall at

his own cost ensure adequate inspection of the subcontractor's works by an inspection organisation

acceptable to the PURCHASER.

PARA 12: EXPORT LICENCE:

It shall be the responsibility of the SUPPLIER to obtain the requisite Export Licence and comply

with other relevant laws of his country for export of the MATERIALS and he shall keep the

PURCHASER indemnified for any losses which may accrue to the PURCHASER because of any

defect therein.

PARA 13: TAXES AND DUTIES: The SUPPLIER shall be entirely responsible for all taxes, stamp duties, Licence fees and other

such levies imposed outside the PURCHASER's country.

PARA 14: IMPORT LICENCE:

Import of Manganese Ore is freely importable.

PARA 15: COMPLETENESS OF THE AGREEMENT AND MODIFICATION:

This agreement cancels all previous communications and negotiations between the parties hereto.

There are no understandings or agreement between the PURCHASER and the SUPPLIER which

are not fully expressed herein and no statement or agreement, oral or written, made prior to or at

the signing hereof shall affect or modify the terms hereof or otherwise be binding on the parties

hereto. No change in respect of the terms covered by this Agreement shall be valid unless the same

is agreed to in writing by the parties hereto specifically stating the same as an amendment to this

Agreement.

PARA 16: WAIVER:

Failure to enforce any condition herein contained shall not operate as a waiver of the condition

itself or any subsequent breach thereof.

PARA 17: FORCE MAJEURE:

17.1 If at any time during the currency of the Contract, the performance in whole or in part by either

party of any obligation under this Contract shall be prevented or delayed by reasons of War,

Hostility, Acts of Public Enemy, Civil Commotion(s), Sabotage, Fire(s), Flood(s), Explosion(s),

Epidemic, Quarantine Restrictions, Acts of State or Acts of God, hereinafter referred to as

eventualities, then the Contract period will get extended for the period of Force Majeure, provided

Notice of the happenings of any such eventualities is given, supported by a certificate of


30

appropriate authority or Chamber of Commerce by either party to the other within 15 days from

the date of occurrence thereof. Neither party shall by reason of such eventualities be entitled to

terminate this contract nor shall either party have any claim for damages against the other in

respect of such non-performance or delay in performance. Work under this contract shall resume as

soon as practicable after such eventualities have come to an end or ceased to exist and the decision

of the Company as to whether the work has to be resumed shall be final and conclusive. Should

one or both parties be prevented from fulfilling their contractual obligations by state of Force

Majeure lasting continuously for a period of at least three months, the parties shall consult each

other regarding further continuation of the Contract.

PARA 18: CONCILIATION & ARBITRATION:

18.1 Conciliation: All questions, claims, disputes and or differences of any kind whatsoever arising out

of or in connection with or concerning this contract, at any time, whether before or after

determination of the contract, shall be referred by the parties hereto for Conciliation before a

Conciliatory Forum / Body. The Conciliatory Forum / Body will be composed of the following

members:-

i) Nominee of the Steel Plant I Unit - Independent of officer handling the contract. (To be

nominated by the head of the concerned department.)

ii) Nominee of the Contractor / Supplier.

The parties in dispute would place their facts in writing before the Body / Forum and the process of

conciliation would be completed within the period of three months from the date of reference to the

Conciliatory Forum I Body. On failure of the conciliation, the aforesaid questions, claims, disputes

and or differences shall be referred by the parties here to for the decision by a Sole Arbitrator to be

appointed as herein after mentioned.

18.2 Arbitration: As per SAIL P1 which can be viewed on SAIL official website.

(http://www.sail.co.in )

PARA 19: LEGAL INTERPRETATIONS:

19.1 This Agreement shall be governed by and construed according to the laws of India for the time

being in force.

19.2 To interpret all the commercial terms and abbreviations used herein which have not been otherwise

defined, the rules of"INCOTERMS 2000" shall be applied.

19.3 Only the competent courts of India will have jurisdiction over any dispute arising out of and in

relation to this contract.

PARA 20: LIABILITY OF GOVT. OF INDIA: It is expressly understood and agreed by and between the SUPPLIER and the PURCHASER that

the PURCHASER 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 Govt. of

India is not a party to this Agreement and has no liabilities, obligations or rights hereunder. It is

expressly understood and agreed that the PURCHASER 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 SUPPLIER expressly agrees, acknowledges and

understands that the PURCHASER is not an agent, representative or delegate of the Govt. of India.

It is further understood and agreed that the Govt. of India is not and shall not be liable for any acts,

omissions, commissions, breaches or other wrongs arising out of the contract. Accordingly,the

SUPPLIER hereby, expressly waives, releases and foregoes any and all actions or claims,

including cross claims, impleader claims or counter claims against the Govt. of India arising out of

this contract and covenants not to sue the Govt. of India as to any manner, claim, cause of action or

thing whatsoever arising of or under this agreement.

PARA 21: OTHER TERMS & CONDITIONS:

As per SAIL P1 which can be viewed on SAIL official website. (http://www.sail.co.in )


31

ANNEXURE -II

TECHNICAL SPECIFICATIONS FOR MANGANESE ORE

For Manganese Ore (Grade-II)

Parameters Unit Prefered Specn Absolute Limit Offered

Specification

CHEMICAL

Mn % 42.0 Min. 36.0 Min.

Fe % 7.0 Max. 16.0 Max.

SiO2 % 5.0 Max. 8.0 Max.

Al2O3 % 5.0 Max. 8.0 Max.

CaO % 15.0 Max 17.0 Max

MgO % 2.0 Max 4.0 Max

P % 0.10 Max. 0.20 Max.

Moisture % - -

K2O % - -

PHYSICAL

Typical Size mm 6-75 6-75

Undersize % 5.0 Max. 10.0 Max.

Oversize % 5.0 Max. 10.0 Max.

N.B: The tenderer has to ensure that the specification offered is strictly within the absolute limits and preferred limits

specified in the table above (Annexure-II)

Signature and Seal of tenderer


32

ANNEXURE III

TERMS AND CONDITIONS FOR DELIVERY OF THE MATERIALS ON THE


AND ON THE BASIS OF

C&F (FREE OUT) GANGAVARAM/VIZAG

TERMS AND CONDITIONS FOR DELIVERY OF THE MATERIALS ON THE


1.0 The PURCHASER shall as far as possible, charter vessels required for carriage of the

MATERIALS under this Agreement upon the terms of the GENCON CHARTER PARTY with

such variations or deletions therein or additions thereto as are necessary to make it conform to the

provisions of this Agreement and as further elaborated herein below.

2.0 The PURCHASER shall charter single-decker vessels suitable for bulk loading in the capacity

range upto 55,000 metric tons (HANDYMAX). The loadable quantity per shipment will be

20,000 metric tons with a tolerance of plus or minus 10% (ten percent) per voyage, at ship-

owner's or Charterer's (i.e.PURCHASER'S) option. In case vessels of other size are available for

meeting the requirements, the PURCHASER shall have the option of chartering and nominating

such vessels also. While chartering the vessels, the PURCHASER shall take into account the

details furnished by the SELLER/PRODUCER to the PURCHASER regarding the loading

facilities, acceptable dimensions of the vessels, clearance dimensions of the loading gantries and

sailing draught at the load port(s). In case the Purchaser charters vessels beyond 45000-55000

MT, prior acceptance of the SELLER/PRODUCER shall be taken.

2.1 The vessel nominated by the PURCHASER shall be classed highest Lloyds/IACS or

equivalent, be in thoroughly seaworthy condition, comply in every respect with all International

and Local regulations, comply with all regulations governing the carriage by sea of Manganese

Ore in bulk and shall be maintained as such for the duration of the voyage.

3.0 The Charter Party/Parties between the Ship-owner(s) and the PURCHASER in respect of the

vessel(s) fixed by the PURCHASER for carriage of the MATERIALS under this Agreement shall,

inter-alia, provide for the following.


33

3.1 The Ship-owner shall bear and pay all port dues (except port loading charges), tonnage dues,

light dues and all other taxes, assessments and charges which are customarily payable at the

loadport(s) on or with respect to the vessel(s).

3.2 The Master of the vessel shall give fax / email advice(s) at the intervals of 15 days, 10 days, 7

days, 72 hours and 24 hours to the SELLER/PRODUCER regarding the ETA of the vessel and the

quantity required to be loaded into the vessel at the loadport. However, this should not affect

vessel acceptance by the SELLER/PRODUCER.

3.3 The Master of the vessel shall provide free use of light on board the vessel as may be required

for working the vessel at the loadport(s) and in each case free of expense to the

SELLER/PRODUCER.

3.4 The Master of the vessel shall allow on board the vessel the authorised representative(s) of the

Independent Inspection Agency/Marine Surveyors at the loadport(s) to witness/inspect and

supervise the loading of the MATERIALS into the hatches of the vessel as well as to carry out

draught surveys.

3.5 Bills of Lading shall be prepared on the basis of the Draught Survey Weight determined by the

Independent Inspection Agency through approved Marine Surveyors at the load port and such

Bill(s) of Lading shall be endorsed by the Master of the vessel or the agents of the Ship-owner at

the load port within 24 hours after completion of loading. The Bills of Lading must be issued in

“CONGENBILL FORM” only.

3.6 The Master of the vessel or the agents of the Ship-owner at the load port shall release Bill(s)

of Lading marked "Freight payable as per Charter Party" immediately after completion of loading.

4.0 Based on the delivery schedule agreed upon between the PURCHASER and the

SELLER/PRODUCER, the PURCHASER shall nominate vessel about 2 (two) weeks prior to

effecting of the shipment. The SELLER/PRODUCER shall confirm to the PURCHASER by Fax

No.s +91 7172278002 or e-mail [email protected]/

[email protected], the acceptance of such vessel(s) within 2(Two) working days of the

nomination thereof. The laydays for each vessel shall be narrowed down to 10 days, in advance of

the ETA of the vessel at the loadport. The PURCHASER shall endeavour to firm up the 10 days

laycan spread 30 days in advance from the first day of the laycan. Purchaser shall endeavour to

nominate vessel to arrive at the Loadport within the agreed Laycan, minimum 15 days prior to

ETA Loadport & substitute vessel minimum 10 days prior to the ETA Loadport. However, the

provisions of this Clause should not affect vessel acceptance by the SELLER/PRODUCER.

5.0 Upon the fixture of any vessel by the PURCHASER for carriage of the MATERIALS under

this Agreement, the PURCHASER shall intimate to the SELLER/PRODUCER relevant

particulars of such vessel. The PURCHASER reserves the right to appoint his own agent(s) at the

loadport(s).

6.0 The SELLER/PRODUCER shall arrange to deliver/load the MATERIALS FOB (TRIMMED)

into the vessel(s) nominated by the PURCHASER and accepted by the SELLER/PRODUCER at

the port(s) of loading.

7.0 The SELLER/PRODUCER shall arrange for a safe loading berth for the vessel at the notified

loading port.


34

8.0 The SELLER/PRODUCER shall guarantee to deliver/load the MATERIALS into the vessel(s)

(FOB Trimmed), at the following rates: 10000 metric tons Guaranteed rate of loading per

Weather Working Day (WWD) of 24 (twenty four) consecutive hours, Afternoons of

Saturday/Sundays Holidays Excepted, Unless Used (SASHEXUU) unless vessel is already on

demurrage.

8.1 If any time is used by the SELLER/PRODUCER on Saturday afternoons, Sundays or

Holidays to deliver/load the MATERIALS into the vessel(s), the time actually used shall count as

laytime.

8.2 If any overtime work is performed by the crew of the vessel at the port of loading at the

instance of the SELLER/PRODUCER, crew's overtime shall be borne and paid for by the

SELLER/PRODUCER.

9.0 Upon arrival of the vessel at the outer anchorage or at the pilot station of the load port,

whether the vessel is in free pratique or not and in berth or not, Master of the vessel shall serve on

the SELLER/PRODUCER the Notice of Readiness of the vessel to load cargo (MASTER'S

N/R) between 0900 hours to 1630 hours on working days (Monday to Friday) & between 0900

hours to 1200 hours on Saturdays.

If the vessel, whether in free pratique or not, is found by the SELLER/PRODUCER not to be

ready in any other respect to load after its berthing, the specific grounds on which the vessel is

found not to be ready to load, shall be recorded by the SELLER/PRODUCER in the

STATEMENT OF FACTS which is also to be accepted and signed by the Master/Agent of

the vessel at the loadport. In such an event, the laytime shall not be deemed to have commenced

until the vessel is in fact ready to load in all respects. In the Statement of Facts there should be

proper notation as to the delays attributable to shoreside or to the Vessel. Statement of Facts

should be signed by all concerned.

Laytime (i.e loading time) shall commence 24 hours after the time at which MASTER'S N/R is

served, whether the vessel is in berth or not and in free pratique or not, unless the loading of the

MATERIALS sooner commenced, in which event laytime shall count from the actual time of

commencement of loading. Any time lost by the vessel in waiting for berth shall also count as

loading time. If the vessel arrives and commences loading before the agreed laycan, then the

laytime shall commence from the time of commencement of loading. In the event of breakdown

of gears/cranes and other equipment of the vessel by reason of disablement or insufficient power,

etc. the period of such inefficiency shall not count as laytime.

10.0 The SELLER/PRODUCER shall arrange to deliver/load the MATERIALS into the vessel

and to trim the MATERIALS inside the hatches of the vessel by mechanical or manual means at

the option of the SELLER/PRODUCER in accordance with the instructions of and to the

satisfaction of the Master or the Chief Officer of the vessel free of risk and all expenses either to

the vessel or to the PURCHASER. Claims for damage caused to the vessel by stevedores, if any

are to be settled directly between the shipowners and the stevedores. The SELLER/PRODUCER

shall however be responsible for settlement of such damages.

The Master/Agent of the vessel at the loadport should notify in writing within 24 hours of any

alleged damage to the vessel by the stevedores and failure to so notify shall bar any claim thereof.

In any event, any such claim shall be barred if not made prior to the departure of the vessel from

the loadport where damage is alleged to have occurred.


35

11.0 Should the SELLER/PRODUCER fail to deliver/load the MATERIALS into the vessel(s) in

full or in part for reasons other than Force Majeure the SELLER/PRODUCER shall be liable to

the PURCHASER for payment of dead freight and/or any other charges & expenses of

whatsoever nature which may be incurred by the PURCHASER by reason of such non-delivery.

12.0 The SELLER shall give regular loading updates to the PURCHASER. Immediately on

completion of loading of the MATERIALS into the vessel, the SELLER/PRODUCER shall

furnish the following details by Fax/ e-mail +91 7172278002 or e-mail

[email protected]/ [email protected] to the PURCHASER to enable the

PURCHASER to take necessary marine insurance cover, (i) Name of the vessel (ii) Quantity

loaded as per Loadport Draught Survey Weight and approximate value thereof, (iii) Name of the

loadport, (iv) Date and time of commencement and of completion of loading and (v) Date and

time of sailing of the vessel from the loadport (vi) No and date of Bill of Lading.

13.0 Immediately on completion of loading, the SELLER/PRODUCER shall obtain from the

Master of the vessel or the Agents of the vessel at the loadport `CLEAN ON BOARD' shipped

Bill(s) of Lading.

14.0 Immediately after completion of loading, a STATEMENT OF FACTS shall be made out at

the loadport duly signed by the Master of the vessel/Agents of the vessel at the load port and the

SELLER/PRODUCER or their Agents at the loadport. Before the sailing of the vessel from the

loadport, copies of the Statement of Facts shall be handed over to the Master of the vessel/Agents

of the vessel at the loading port.

15.0 In the TIME SHEET based on the aforesaid STATEMENT OF FACTS, the computation of

laytime allowed and laytime used shall be based on the terms and conditions contained in

Paragraphs 8, 8.1, 9 hereinabove. Despatch, if any, shall be calculated on the basis of "working

time saved". The rate of demurrage/despatch shall be as stipulated in Charter Party relating to the

vessel.

In the case of demurrage, the SELLER/PRODUCER shall remit the agreed amount of demurrage

to the PURCHASER. In the case of despatch, the PURCHASER shall remit the agreed amount of

despatch to the SELLER/PRODUCER.

The final settlement of the account of demurrage/despatch in respect of each vessel shall be

effected directly between the SELLER/PRODUCER and the PURCHASER on the above basis,

within 60 days from the date of receipt of claim with supporting documents. Laytime calculations

to be forwarded by Seller within 30 days from the date of sailing of the vessel from the

Loadport on vessel to vessel basis.

16.0 The SELLER/PRODUCER has agreed to comply with the International Ship and Port

Facility Security (ISPS) Code stipulated by the International Maritime Organisation, which has

come into effect w.e.f. 1st July 2004. Failure on the part of the SELLER/PRODUCER to comply

with the ISPS code‟s requirements and / or the Loadport not conforming with the ISPS code and

any delays caused by such failures shall be to the SELLER/PRODUCER‟s account who shall be

fully responsible for all the consequences arising out of it.

NOTE:

1. Name, Address, fax / email and telephones numbers for serving Notice regarding ETA of the

vessel and Notice of Readiness of the vessel to the SELLER/PRODUCER(MINE OWNER) at the


36

Loadport as per Para 3.2 and 9 hereinabove: M/S

______________________________________________________________________________

_____________________________________________________

2.0 Clause 8 indicates Guaranteed Rate of Loading as per SAIL’s requirement. However,

alternate Guaranteed Rate of Loading to suit loadport requirements/ restrictions can be

considered by SAIL.

FOR AND ON BEHALF OF THE

PURCHASER

ANNEXURE-IIIA

TERMS AND CONDITIONS FOR SHIPMENT OF THE MATERIALS ON THE

BASIS OF C&F (FREE OUT) GANGAVARAM/VIZAG

TERMS AND CONDITIONS FOR SHIPMENT OF THE MATERIALS ON THE BASIS

OF C&F (FREE OUT) VIZAG/GANGAVARAM PORT

The terms and conditions for shipment of the MATERIALS under the Agreement shall be as

follows:

1.0 TYPE OF VESSELS:

1.1 The SELLER/PRODUCER(MINE OWNER) shall effect shipments in single-decker, self-

trimming type of Handymax vessels suitable for bulk discharge with self-discharging gear/cranes

fitted with grabs fully automatic requiring no manual operation and capable of maintaining the

discharge rates guaranteed by the PURCHASER as per Para 7 herein below.

The vessel nominated by the SELLER shall be classed highest Lloyds/IACS or equivalent, be in

thoroughly seaworthy condition, comply in every respect with all International and Local

regulations, comply with all regulations governing the carriage by sea of Manganese Ore

in bulk and shall be maintained as such for the duration of the voyage.

Vessels upto 15 years of age can be nominated but additional insurance premium, if any, on

account of ship age beyond 10 years shall be borne by SELLER. Seller confirms that vessel

possesses valid statutory certificates and complies with all directives of Government of India /DG

(Shipping) regarding suitability and/or acceptability of vessel in respect of class/age/other

technical parameters in Indian waters/ports. Seller confirms that vessel is able to meet all

discharge port limitations/requirements/conditions. The holds of each vessel shall be cleaned

before loading, to avoid contamination.


37

1.2 If, on arrival of the vessel at the nominated Indian port of discharge, it is considered by the

PURCHASER that the vessel may not be capable of maintaining the discharge rates as guaranteed

by the PURCHASER as per Para 7 herein below, a joint survey shall be conducted at the port of

discharge to investigate and to assess the capacities of the self-discharging gear/cranes/grabs of

the vessel and to establish the effective rate of discharge which the vessel is capable of

maintaining. The findings of the joint survey shall be final and binding on both the PURCHASER

and the SELLER/PRODUCER. In case the owner does not participate in the joint survey even

after receiving due notice then the report of the independent surveyor shall be binding on the

SELLER/PRODUCER and Purchaser. The survey charges shall be borne and paid for by the

SELLER/PRODUCER and the PURCHASER in equal proportions.

1.3 If, according to the findings of the surveyor, the vessel is not found to be capable of

maintaining the discharge rate guaranteed by the PURCHASER for the relevant port of discharge,

the effective rate of discharge which the vessel may in fact be found to be capable of maintaining

as per the findings of the joint survey shall be recorded in the STATEMENT OF FACTS referred

to in Para 8 herein below and the computation of laytime used shall be based on the rate of

discharge as assessed by independent marine surveyor, wherever it is less than the discharge rate

guaranteed by the PURCHASER for the relevant port of discharge.

1.4 Keeping in view the limitations at the discharge ports opted, the SELLER/ PRODUCER shall

ensure that the vessels engaged by them for shipment of the MATERIALS under this Agreement

have (a) length overall (LOA) not exceeding 200 MTR (b) beam length not exceeding 32.26 MTR

and (c) arrival draughts not exceeding 11.00 MTR (available water) at VIZAG/GANGAVARAM.

2.0 General provisions to be incorporated in the Charter parties governing shipment of the

MATERIALS:

The SELLER/PRODUCER shall ensure that the charter parties governing shipments of the

MATERIALS under this Agreement contain, inter-alia, the following provisions:

2.1 On sailing and seven days prior to vessel's ETA East Coast India, the Master of the vessel

shall give advice to the PURCHASER by fax/e-mail +91 7172278002 or e-mail

[email protected]/ [email protected]. Thereafter, the Master of the

Vessel shall email / fax at intervals of 72 hours/24 hours regarding ETA of vessel, to the

PURCHASER as well as to the undermentioned port offices of the PURCHASER

Branch Manager

STEEL AUTHORITY OF INDIA LIMITED,

Branch Transport & Shipping Office

Harbour Approach Road, Visakhapatnam-530035, Andhra Pradesh (India)

Tel. No. +91 891 2563 041 / +91 891 2563 611 / +91 891 2704 074

Fax No. +91-891 2563 698 / +91-891 2562 308

Email: [email protected]

2.2 The SELLER/PRODUCER shall arrange for the vessel to bear and to pay all port

dues/charges (except port unloading charges), tonnage dues, light dues, and other taxes,


38

assessments and charges which are customarily payable at the Indian Port(s) of discharge on or

with respect to the vessel (s).

2.3 Each vessel shall hold a valid Gear Certificate in conformity with the International Dock

Safety Convention, covering the duration of each voyage and confirming that all the gears have

been duly tested. The Gear Certificate shall be made available by the Master of vessel to the

representative of the PURCHASER for perusal, after the berthing of the vessel.

2.4 The SELLER/PRODUCER to ensure that the vessels nominated and accepted comply with

ISPS code / requirements. Failure on the part of the vessel to comply with the code‟s requirements

and any delay caused by such failures shall be to vessel/SELLER/PRODUCER‟s account.

2.5 The Master of the vessel shall allow on board the vessel the representatives of the independent

marine surveyors appointed by the PURCHASER and provide such information/assistance as may

be required by them in connection with the performance of their assigned duties.

2.6 The Master of the vessel shall provide free use of light on board the vessel as may be required

for working the vessel at the port(s) of discharge at all times and in each case free of expense to

the PURCHASER.

2.7 The opening and the closing of the hatches of the vessel shall always be done by the vessel's

crew and the cost involved therein and the time used thereof shall be to the account of the vessel,

even if the vessel is on demurrage.

2.8 In the event of the Master of vessel exercising lien on the cargo (i.e. the MATERIALS) for

non-payment of freight, extra freight, dead freight, demurrage and damages for detention of the

vessel at the Indian port(s) of the discharge, the SELLER/PRODUCER shall, on receipt of fax /

email intimation from the PURCHASER, take immediate remedial measures and shall cause

appropriate instructions being issued to the Master of the vessel to proceed with the discharge of

cargo (i.e. the MATERIALS). Any time lost between the receipt of notice of lien by the

PURCHASER from the Master of the vessel and the withdrawal of such notice shall be to the

account of the vessel.

2.9 The overtime of the crew shall be to the account of the vessel unless ordered by the

PURCHASER.

2.10 As regards damages, if any, caused to the vessel by the PURCHASER'S stevedores, the

PURCHASER will be responsible only for the damages caused to the vessel during discharge. In

principle, claims for such damage are to be settled directly between the ship-owners and the

stevedores. Such claims shall be lodged by the Master of the vessel on the Stevedores promptly

after the damage has been sustained and then confirmed in writing duly supported by Third Party

Damage Report prior to vessel's departure from the port of discharge, failing which the claim shall

stand barred and SAIL / stevedores shall stand absolved and relieved of all responsibility. The

master of the vessel shall get a joint survey conducted with the stevedores to determine the extent

of damages sustained to the vessel. The joint survey, must be conducted before the departure of

the vessel from the port in which the damage took place. The owners must submit their final claim

within 60 days of completion of discharge at the port in which the damage took place. Failure to

submit final claim within 60 days will debar the claim and relieve SAIL / stevedores of all

responsibility. In the absence of a joint survey, the claim shall stand barred and SAIL / stevedores

shall stand absolved and relieved of all responsibility.


39

2.11 The time used for grab fixing, gangway placement and draft survey will be on vessels

account and time used not to count as laytime even if the vessel is already on demurrage.

2.12 Laytime shall not count during rain/other bad weather periods, as mentioned in SOF and on

Non Weather Working Days (NWWD) declared by the port authorities, even if discharge

operation is continued for some part of time unless the vessels is already on demurrage.

3.0 Intimations to be sent by the SELLER/PRODUCER to the PURCHASER on nomination

of vessels for shipment and on completion of loading of vessels at Loadport:

3.1 SELLER/PRODUCER shall so arrange for each shipment of MATERIALS hereunder to

conform with provisions in Clause 1 of this Agreement and shall nominate each vessel 10 days

in advance to the PURCHASER by an e-mail/ fax to the PURCHASER at FAX no. +91

7172278002 or e-mail [email protected]/ [email protected].

Such nomination of vessel will include details viz. (1) Name of the vessel (ii) Flag (iii) Year Built

(iv) Name and nationality of the shipowners (v) Class (vi) Type (vii) Length overall (viii) Beam

Length (ix) Number of hatches/holds (x) Dimensions of hatch openings (xi) Number of cranes and

their capacities (xii) Number of grabs and their sizes and lifting capacity per cycle (xiii) Quantity

of the MATERIALS proposed to be loaded (xiv) Laydays and ETA of the vessel at loading port

(xv) Demurrage / Despatch rate.

The PURCHASER’s Shipping Division (SAIL/T&S) shall endeavour to e-mail / fax to the

SELLER/PRODUCER preferably within 48 (Forty Eight) working hours the acceptance or

otherwise of the above nomination subject to a maximum of 72 (Seventy Two) working hours.

3.2 The SELLER/PRODUCER shall consign the Vessel(s) to SAIL/their Agent(s) at the Indian

Port(s) of Discharge at customary agency fees payable by the Vessel/Owners to such agent(s). The

charterers agency fees must be paid to the agent nominated by SAIL within 30 days of completion

of discharge at the respective port (s).

3.3 Immediately on completion of loading of the materials into the vessel, the

SELLER/PRODUCER shall give the following details by fax at +91 7172278002 or e-mail

[email protected]/ [email protected] to the PURCHASER: (i) Name of the Vessel (ii)

B/L weight and value of the cargo (iii) Name of the port of shipment (iv) Date and time of

commencement and of completion of loading and (v) Date and time of sailing of the vessel from

the port of shipment (vi) ETA East Coast India.

3.4 In case PURCHASER is not able to produce original Bill of Lading on arrival of vessel at

discharge ports, Owners/Master to instruct their discharge port agents to issue the delivery orders

and allow discharge of cargo against the ordinary Letter of Indemnity issued by the

PURCHASER.

4.0 Declaration of discharge port by the PURCHASER: 4.1 On receipt of Master's 7 days' notice of the ETA of the vessel East Coast India, as provided in

Para 2.1 hereinabove, the PURCHASER shall indicate to the Master of the vessel's or Shipowner's

agent the intended port of discharge.

5.0 Service of Notice of Readiness for discharge of cargo (i.e. the MATERIALS) by the

Master of the Vessel (Master's N/R):

5.1 Upon arrival of the vessel within the port limits at port of discharge and in free pratique and

after being ready in all respects to discharge the cargo, the Master of the vessel shall serve on the


40

concerned port office(s) of the PURCHASER (referred to in Para 2.1.1 hereinabove) the Notice

of Readiness of the vessel to discharge cargo (MASTER'S N/R) in writing in Business hours

between 0930 hours and 1630 hours on working days (Monday to Friday) and between 0930 to

1200 Hours on Saturday, Sundays and Holidays excepted.

6.0 Laytime and excepted periods:

6.1 The laytime at discharge port shall commence 24 hours after Master's N/R is served as per

clause 5.1, even if used.

6.2 If the turn-time at discharge port expires on Saturday afternoons, Sundays, Holidays, the

laytime shall commence at 8:00 A.M. on the next working day, even if used.

6.3 The time taken by the vessel for proceeding from anchorage to the first working berth shall be

to the account of the vessel, even if the vessel is on demurrage.

The PURCHASER shall have the option to discharge cargo from the vessel at a second safe berth

at the same port of discharge. In the event of the PURCHASER exercising the option as aforesaid,

the expenses involved in shifting the vessel to the second safe berth shall be to the account of

vessel and the time used in shifting shall not count as laytime, even if the vessel is on demurrage.

If the port authorities order the shifting of the vessel to another safe berth at the same port of

discharge, the time involved in shifting and the cost thereof shall be to the account of the vessel

even if the vessel is on demurrage.

6.4 If, after berthing, the vessel is found by the Port Authorities/PURCHASER not ready in all

respects to discharge, laytime will not commence until the vessel is in fact ready in all respects

to discharge.

6.5 Time shall not count between noon on Saturdays and 0800 hours on Mondays and between

1700 Hours on the last working day preceding a Charter party holiday and 0800 hours on the first

working day thereafter, unless used.

6.6 In the event of breakdown of gear/cranes/winches and other equipment of the vessel by reason

of disablement or insufficient power etc. the period of such insufficiency shall not count as

laytime, irrespective of vessel is on demurrage or not.

6.7 Time lost by reason of any or all of the following causes shall not be computed as Laytime

unless the vessel is already on demurrage:

6.7.1 War, rebellion, Tumult, Political disturbances, Insurrection.

6.7.2 Lockouts, Strikes, Riots, Civil Commotion.

6.7.3 Epidemics, Quarantine, Landslips, Floods, Frost or Snow, boretides, bad weather.

6.7.4 Stoppage of work, whether partial or general, by Workmen, Longshoremen, Tug-boat men

or other hands essential to the working of the vessel or discharge of cargo from the vessel.

6.7.5 Accidents at the wharf.

6.7.6 Intervention of Sanitary, Customs and/or other constituted authorities.

6.7.7 Stoppage, whether partial or total, on rivers and canals.


41

6.7.8 Any other cause beyond the control of the PURCHASER.

7.0 Special clause in case more than one importers cargo is loaded in the same vessel:

a) If more than one importers cargo is loaded into same vessel, SAIL cargo will be

discharged/ delivered first.

b) Discharged quantity will be determined by joint draught survey by reputed marine

surveyor appointed by SAIL and Vessel. Prior notice will be given by both parties to each

other giving details of surveyor appointed for this job.

c) All pre-berthing delay will be apportioned among the parties for whom material has been

loaded into vessel subject clause 5.0 and 6.0 about serving of Notice of Readiness and

calculation of laytime as above. In case of pre-berthing delay due to non-readiness of

other importers and/or vessel such laytime will not count on SAIL.

8.0 Guaranteed Discharge Rates:

8.1 The SELLER/PRODUCER shall deliver the MATERIALS in one or two safe berths,

reachable on arrival always afloat at the nominated port(s) of discharge.

8.2 The SELLER/PRODUCER shall provide such Handymax vessels having maximum 5

hatches/holds, served by minimum 4 cranes of preferably 30 MT capacity (minimum 25 MT

capacity) each fitted with grabs of minimum 12 CBM capacity.

8.3 Subject to the provisions of Para 1.3, Para 6 and 7.2, hereinabove, the PURCHASER shall

guarantee discharge rate of 10,000 Metric Tonne, basis five or more available workable hatches,

WEATHER WORKING DAY (WWD) of 24 consecutive hours and prorata for part of WWD,

SATURDAY AFTERNOONS, SUNDAYS, CHARTER PARTY HOLIDAYS EXCEPTED,

UNLESS USED (SASHEXUU)

8.4 In case the vessel is unable to discharge as per port norms, then charterers at the sole option

will have right to engage alternative modes of discharge such as using shore handling facilities

without utilizing vessels gears. The time and cost for the same shall be borne by the Sellers.

9.0 Discharge Of Cargo: Vessel shall be discharged at inner harbour berths at Vishakapatnam Port, including berths under

control of B.O.T Operator(s) (where available draught at present is 11.00 meters) or at

Gangavaram Port at Purchaser‟s option. Sellers shall be required to obtain permission from Port

Authorities for berthing of the vessel at all the locations, if necessary, under Port rules/regulations

and also shall furnish indemnity/ any other documentary requirements to port authorities for

berthing and discharging operation at the berths.

10.0 Statement of Facts:

Immediately after completion of discharge, and before the sailing of the vessel from the port of

discharge, a Statement of Facts shall be made out at the port of discharge duly signed by and

distributed amongst (a) Master of the vessel/agents of the vessel at the port of discharge; (b)

Agents/Representative, if any, of the SELLER/PRODUCER at the port of discharge and (c)

Representative of the PURCHASER at the port of discharge.

11.0 Settlement of Demurrage/Despatch Money Account in respect of each shipment: In the time sheet based on the aforesaid STATEMENT OF FACTS, the computation of Laytime

allowed and Laytime used shall be based on the provisions contained in Paras hereinabove.

Despatch, if any, shall be calculated on the basis of 'Working time saved'. The rate of


42

Demurrage/Despatch Money shall be as per Charter Party and the same shall be declared at the

time of nomination of the vessel.

FOR AND ON BEHALF OF THE

PURCHASER

(NOTE: NO DEVIATION IN SHIPPING TERMS ARE ACCEPTABLE. ALL TENDERERS ARE REQUESTED TO

SUBMIT OFFERS AS PER ABOVE SHIPPING TERMS OF SAIL).


43

ANNEXURE-IV

Purchase order no. ___________ DATED ____________

PROFORMA OF BANK GUARANTEE FOR PERFORMANCE GUARANTEE BOND

TO


CHANDRAPUR FERRO ALLOY PLANT, Chandrapur (Maharashtra)

INDIA

Bank Guarantee No.________________________Dated_____________

LETTER OF GUARANTEE

WHEREAS MESSRS___________________________________________________

(hereinafter referred to as the SELLER/PRODUCER) and MESSRS

________________________________ (hereinafter referred to as the PRODUCER) and

MESSRS. STEEL AUTHORITY OF INDIA LIMITED (hereinafter referred to as the

PURCHASER) have entered into an Agreement vide Agreement No.______________________

Dated____________________________ (hereinafter called the said AGREEMENT) for the

supply of ______________ (_________________________) metric tons of

_______________________________Manganese Ore (hereinafter referred to as the

MATERIALS) on the terms and conditions mentioned therein.

2. WE, STATE BANK OF INDIA, (branch as defined in the formal Purchase Order) at the

request of the SELLER/PRODUCER(MINE OWNER), do hereby undertake and indemnify and

keep indemnified the PURCHASER to the extent of US$ _________________(US

Dollars_________________________) against any loss or damage that may be caused to or

suffered by the PURCHASER, by reason of any breach by the SELLER/PRODUCER of any of

the terms and conditions of the said AGREEMENT and/or in the performance of the said

AGREEMENT by the SELLER/PRODUCER. We agree that the decision of the PURCHASER

as to whether any breach of any of the terms and conditions of the said AGREEMENT or in the

performance thereof has been committed by the SELLER/PRODUCER and the amount of loss or

damage that has been caused to or suffered by the PURCHASER shall be final and binding on us

and the amount of the said loss or damage shall be paid by us forthwith to the PURCHASER on

demand and without protest or demur.


44

3. WE, STATE BANK OF INDIA, (branch as defined in the formal Purchase Order), hereby

further agree that the guarantee herein contained shall remain in full force and effect during the

period that would be taken for satisfactory performance and fulfilment in all respects of the said

AGREEMENT and that it shall continue to be enforceable for (a) four months after the date of

Bill of Lading of the last consignment of the MATERIALS under the said AGREEMENT or (b)

in the event of any dispute(s) between the PURCHASER and the SELLER/PRODUCER, until

such period(s) the dispute is settled fully, whichever date is later, and that if any claim accrues or

arises against us, STATE BANK OF INDIA, (branch as defined in the formal Purchase Order) ,

by virtue of this Guarantee before the dates referred to at (a) and (b) herein above, the same shall

be enforceable against us, STATE BANK OF INDIA, (branch as defined in the formal Purchase

Order), notwithstanding the fact that the same is enforced after the dates referred to at (a) or (b)

hereinabove, whichever date is later, provided that notice of any such claim has been given by the

PURCHASER before the dates referred to at (a), or (b) hereinabove, as the case may be.

Payments under this LETTER OF GUARANTEE shall be made promptly upon our receiving the

notice to that effect from the PURCHASER on demand and without protest or demur.

4. It is fully understood that this Guarantee shall become effective from the date of the said

AGREEMENT and that WE, STATE BANK OF INDIA, (branch as defined in the formal

Purchase Order), undertake not to revoke this Guarantee during its currency without the prior

written consent of the PURCHASER.


further agree that the PURCHASER shall have the fullest liberty, without affecting in any manner

our obligations hereunder, to vary any of the terms and conditions of the said AGREEMENT or to

extend the time of performance of the said AGREEMENT by the SELLER/PRODUCER from

time to time or to postpone for any time or from time to time any of the powers exercisable by the

PURCHASER against the SELLER/PRODUCER and to forbear or to enforce any of the terms

and conditions relating to the said AGREEMENT and WE, STATE BANK OF INDIA, (branch as

defined in the formal Purchase Order), shall not be released from our liability under this

Guarantee by reason of any such variation or extension being granted to the

SELLER/PRODUCER or any forbearance and/or omission on the part of the PURCHASER or

any indulgence by the PURCHASER or by any other matter or thing whatsoever which under the

law relating to sureties would, but for this provision, have the effect of so releasing us from our

liability under this Guarantee.


further agree that the Guarantee herein contained is initially valid upto __________ and that the

same shall be extended further according to the provisions contained hereinabove.


further agree that the Guarantee herein contained shall not be affected by any change in the

constitution of the SELLER/PRODUCER and/or the PURCHASER.


45

NOTE: The expression `SELLER/PRODUCER' wherever appearing in this Performance Guarantee Bond shall also include the

`PRODUCER'.

FOR AND ON BEHALF OF

STATE BANK OF INDIA , (branch as defined in the formal Purchase Order)

Signature:

Name: ____________________________

DULY CONSTITUTED ATTORNEY

& AUTHORISED SIGNATORY

Designation: ____________________________

State Bank of India, (branch as defined in the formal Purchase Order)

Bhilai

Dated:

---------------------------------------

SIGNATURE OF TENDERER

____________________________________________________________________________

.


46

Annexure-V

General Rules and Regulations governing conduct of Online Reverse Auction.

1.0 Brief description of the tender processing for On-line Reverse Auction is given below:

Tenderers submit their techno commercial bid along with all the required documents as per the terms of

enquiry, which are opened on the due date of opening of quotation. The price bids shall be submitted by

the Tenderers on line on mjunction platform, the process for submitting online price bid is as under. a. Web-page to be accessed through the URL: http://www.buyjunction.in.

b. There is a link in the above web-page under the section “Open Tender” through which vendors can access the required

RFQ/Tender against which sealed price bids are to be accepted.

c. The above mentioned link would be kept active by mjunction till the due date of submission of RFQ/Tender or as per

directive & advertisement of SAIL in case of OTE/GTE or as per instructions in RFQ/tender documents in LTE.

d. Existing bidders who have earlier participated in mjunction e-platform shall have direct access to the e-auction platform. They

would be able to do this by using their existing user IDs and passwords after clicking the above link.

e. New bidders would have to click the link “New User” which would then throw open a pop-up screen showing

details on how to (a) register online (b) receiveuser ID/password through email which they have registered

online and (c) place their bids. With this, new bidders would also become enabled to log in and participate on

mjunction e-platform.

f. After logging in (with respective user IDs/ passwords), bidders shall be directed to a web-page where detailed road map (user

manual) on how to place bids would be displayed.

g. Each bidder can login and place/register a sealed price bid on mjunction e-platform within the stipulated period stated in point

„c‟ above. Each bidder can place such price bid only once and cannot revise the submitted bid subsequently. However an

option for such revision is available which can be exercised at the discretion of SAIL.

h. For OTEs, each bidder shall be provided with a system generated acknowledgement of submission of online sealed price bid.

This acknowledgement may be taken as a hard copy printout as well.

i. After closure of the stipulated time of due date of submission of tender for online price submission, mjunction shall be able to

draw out a system generated report of the techno-commercially eligible parties. This would be done after techno-commercial

evaluation by SAIL and under consequent intimation to mjunction.

1.1 All the tenderers whose offers are found techno-commercially acceptable become eligible for

participating in price bidding through On-line Reverse Auction over Internet.

1.2 Non-placement of bid by an eligible bidder during the Reverse Auction event may adversely affect

consideration of the bidder for the subsequent RFQ‟s.

1.3 The Mjunction would intimate Date & Time for Start of Reverse Auction & duration of auction to the

tenderers in advance. Login ID & Password specific to each tenderer is given and demonstration of

bidding (On-line) process is given to enable each tenderer fully understand the process of bidding On-

line.

1.4 Thereafter, at scheduled time the screen for On-line bidding is launched wherein the supplier would

put in their bids. The RA Strategy to be employed shall be communicated to all the eligible Tenders

prior to start of Reverse Auction. Mjunction would explain all the eligible bidders about the process

for participating in Reverse Auction and would also provide them training, their Log-In ID and

Password to participate in the Reverse Auction.

1.5 All eligible tenderers having password can view the bidding on the computer screen and also enter

their prices any number of times during the duration of bidding.

1.6 If it has been decided at tendering stage to distribute the tendered quantity to more than one supplier

then after conclusion of reverse auction a screen for online matching of lowest price by all tenderer

other than the L1 bidder, would be launched. Bidders other than L1 can confirm matching on L1 price

on the screen.

1.7 The quantity would be distributed among the bidders based on the ranking of bidders at the conclusion

of reverse auction and order would be placed on predetermined no. of parties from among the bidders

who have bid and matched L1 price.

2.0 Service Provider and the Issuance of RFQ

2.1 Steel Authority of India Limited has engaged the services of its Joint Venture Company M/s

mjunction services limited (MJ) for conducting the Reverse Auctions. MJ is fully authorized to give

clarifications / coordinate with the suppliers on behalf of Steel Authority of India Limited with respect

to the conduct of Reverse Auction for the items/services mentioned in this Enquiry.


47

The contact details of the Mjunction are as follows:

Contact Details

mjunction services limited

Godrej Waterside, Tower 1, 3rd

Floor

Block - DP, Plot - 5, Sector V ,Salt Lake City, Kolkata – 700091, West Bengal, INDIA

Mr. Jaideep Boruah, Tel: 033-6610 6446; Fax: 033-6603 1734

E-mail: [email protected]

2.2 Suppliers who are acceptable to Steel Authority of India Limited and who accept all the Terms and

Conditions shall be intimated by M/s mjunction services limited to participate in the Reverse Auction.

2.3 SAIL, CO will intimate the list of Techno-Commercially acceptable Tenderers to mjunction. All

further communication w.r.t Reverse Auction will be done by mjunction to the authorized

representative of Tenderers as furnished by Tenderes in Form - 1 of this document(to be submitted

along with Techno-Commercial Bid). mjunction will explain the Reverse Auction process to all the

prospective bidders and clarify issues, if any. It will be the responsibility of the tenderers to get them

acquainted to their satisfaction with the On-line bidding process by thoroughly interacting with the

mjunction. Only SAIL, CO will be empowered to approve any deviations from the RFQ document

asked for by the Supplier.

2.4 Vendor Enablement- Mjunction shall have the responsibility of familiarizing the bidders with the

Reverse Auction Process. (Including training to the vendors).

3.0 Participation in On-line Reverse Auction for price bidding:

3.1 Tenderers will be required to participate in On-line Reverse Auction over Internet for price bidding.

3.2 The General rules & regulations are given in point no. 4 and definition of Key Terms of Reverse

Auctions is given in point no. 5.

3.3 The key features for participation in a Reverse Auction are given below: a) The Reverse Auction will be conducted on mjunction‟s platform. Mjunction shall intimate schedule of the Reverse Auction

to all the techno-commercially acceptable tenderers.

b) The start bid price, minimum decrement and bid time shall be intimated to all techno-commercially acceptable tenderers.

c) There would be an auto extension of bid time in case bids are placed during last minutes of the indicated bid closure time. The

auto extension rule will extend the bid time by a period till bids continue to get placed or the buyer decides to terminate the

Reverse Auction. The auto extension time may be 3, 5, 10, 15 etc. minutes as decided and communicated by mjunction.

d) All bidders should nominate a person who would be the authorized „BIDDER‟ (i.e., the person who is authorized to bid in

Reverse Auction on the firm‟s behalf - Form 1 to be filled for authorization & sent with the Techno Commercial Bid).

The “USER-ID” and “PASSWORD” will be given to this person only. The Mjunction will intimate a secure and confidential

Login ID and Password specific to each tenderer, for participating in the Reverse Auction. The user ID and Password shall be

intimated to the bidder before the reverse auction.

e) During the Reverse Auction, bidders have to quote lumpsum (Single) price exclusive of Taxes for the entire job as per

the scope of work.

f) During the Reverse Auction, suppliers shall be allowed to revise their price and bring it downward only. Bidders are not

allowed to quote above the Start Bid Price.

3.4 All Bidders have to confirm through scanned document/fax (email id/fax number shall be intimated to

all bidders along with the Auction Notice) to mjunction, their last quoted prices (Form 2 - to be filled

after the reverse auction & sent & not with the techno commercial bid).

3.5 All Bidders are advised to quote from a reliable Internet facility, as neither SAIL nor MJ would be

responsible for any failure in the Internet connectivity during the bidding.

3.6 It is to categorically state on behalf of M/s SAIL, and M/s mjunction that the Bidders need not pay

any fee towards training for actual bidding or any other service with regard to this tender etc., in the

Reverse Auction and the Bidders need not subscribe to any of the services in lieu of participation in

the Reverse Auction.

3.7 Written Acceptance in-toto to all the Terms & Conditions mentioned in this document is a pre-

requisite for securing participation in the On-line Reverse Auction conducted by Metal junction on

behalf of Steel Authority of India Limited for the products required as per this RFQ.

4.0 Price break-ups will be required to be furnished by the L1 tenderer for the various componets of the

job as per the scope of work. The bidders shall submit their detailed price break-up for all taxes and


48

duties, within two working days of the closure of the auction to mjunction with a copy to SAIL,CO,

either through scanned document or Fax.

5.0 The General Rules and Regulations provided herein that govern the conduct of On-line Reverse

Auctions operated by mjunction services limited.

INTRODUCTION

The General Rules and Regulations provided herein that govern the conduct of On-line Reverse Auctions

operated by mjunction services limited. These rules cover the roles and responsibilities of the parties in the

On-line Reverse Auctions on the Mjunction platform. Acceptance in-toto to these General Rules and

Regulations is a pre-requisite for securing participation in the On-line Reverse Auctions on the

Mjunction platform.

Role of mjunction

Mjunctionis the service provider providing the forum for conducting the reverse auction, the role of

Mjunction as the agency providing the auction engine would include:

Input of the details of the auction items and defining of the bidding rules as desired by the client.

Providing access to the approved bidders to participate in the auction

Enhancing bidder awareness of and comfort with the auction mechanism and bidding rules.

Summarizing of the auction proceedings and communication of the outcome to the client.

The responsibility for fulfillment of the contract rests between the bidders and the client and mjunction

shall have no liability on this account.

Role of the Bidder

The role of the bidder is outlined below:

The bidder would participate in the Reverse Auction with the aim of bidding to secure the

auctioned item in the auction (being selected for supplying the client‟s requirement in a Reverse

Auction).

The bidder would be provided access to the Auction through a User Id protected by a password.

The bidder needs to ensure that the User Id and password is not revealed to unauthorized persons.

Access to the auction mechanism shall be provided to all the approved bidder subsequent to

obtaining their written consent to the General Rules & Regulations.

In the event of winning an allotment in the auction mechanism, the bidder shall commit to fulfill

outlined obligations under the contract.

Bidding Rules:

The Bidding Rules refer to the information and terms defined specifically for a particular Reverse Auction.

The purpose of the Bidding rules is to provide approved bidder with the information and terms specific to

the auction in which they are bidding. This would include: 1. Start Time and duration of the Reverse Auction.

2. Any extension of the duration of the auction in the event of bids being received towards the end of the pre-specified

duration.

3. Reserve Price (if specified).

4. Minimum & Maximum Bidding Quantity (if specified)

5. Price Decrements and any reduction in the price decrements in the auction in the event of inactivity.

6. Other attributes (informational/non-negotiable in nature)

7. Participation in the auction process presumes complete awareness and understanding of the bidding rules.


49

Conduct of the Reverse Auction

The Reverse Auction shall be conducted on pre-specified date.

Mjunction retains the right to cancel or reschedule the Reverse Auction on any of the followings reasons:

Some of the confirmed bidders are unable to access the module due to infrastructural problems such as

sustained power failure or telecommunication breakdown.

Bids are received but above the Start Bid Price

The duration of the Reverse auction may also vary from the pre-specified period of time on account of

termination of the auction by mjunction:

On the advice of the client, or,

On its own accord in case of situations where it is felt that continuance of the auction proceedings is

prejudicial to the smooth conduct and / or integrity of the auction process.

Liability of mjunction:

mjunction shall not be liable to the client / bidders in the auction or any other person(s) for:

any breach of contract by and party in the fulfillment of the underlying contract.

Any delays in initiating the online auction or postponement / cancellation of the online auction

proceedings due to any problem with the hardware / software / infra structural facilities or any other

short comings.

Confidentiality Clause

mjunction undertakes to handle any sensitive information provided by the client or confirmed bidders for

the reverse auctions conducted on the mjunction platform with utmost trust and confidentiality.

Jurisdiction

Any disputes relating to the online reverse auction module shall be subject to the sole jurisdiction of

Kolkata courts only to the exclusion of any other court.

Right of the client

SAIL reserves the right to fully / partly accept the bids or completely reject the same.

5. Definition of Key Terms – Reverse Auction Reverse Auction

Reverse Auction is used to procure items/services, where the requirement for one/more Markets of an item is stated and the

participants are required to bid down the price to be selected to supply the requirement.

On-line Reverse Auctions On-line Reverse Auctions refer to those Reverse Auctions conducted through the Internet with simultaneous bidding by the bidders

(from one or more locations). In other words, the venue for the auction is on an Internet website/ platform. The Mjunction website

(http://auction.mjunction.com) or any other URL assigned by Mjunction would constitute the venue for the purpose of the on-line

auction.

Award at the Reverse Auction

The bidder quoting the lowest price is normally allotted the item/service.

Client

Client is SAIL who has contracted mjunction to conduct such Reverse Auction. In case of Reverse Auction, the purpose would be

to meet their requirement for item/s from among the sellers desiring to sell the items to the Client.

Bidder

Bidder is the individual/business entity participating in the Reverse Auction, intending to supply the item/s to the Client. To be

become a Bidder in the auction, a business entity has to secure client approval for participation and also provide written assent to

the General Rules and Regulations.

Auction Engine

Auction Engine refers to the software that encapsulates the entire auction process, processing logic and information flows.

mjunction is the sole owner of the auction engine and retains exclusive right over the utilization of the same.

Preview Time

Preview Time refers to the period of time that is provided prior to the commencement of bidding. This is to facilitate approved

participants to view the auction details such as item specifications, bidding details and bidding rules. The purpose is also to

familiarize participants with the functionalities and screens of the auction mechanism. It is not mandatory for mjunction to provide

Preview Time.


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Start Time

Start time refers to the time of commencement of the conduct of the On-line auction. It signals the commencement of the Price

Discovery process through competitive bidding.

Duration of the Reverse Auction

It refers to the length of time the price discovery process is allowed to continue by accepting bids from competing bidders. The

duration of the auction would normally be for a pre-specified period of time. However, the bidding rules may state the conditions

when the pre-specified duration may be extended/ curtailed. The conditions include:

Automatic extension in the event of bids being entered towards the end of the scheduled duration to facilitate the other bidders

to view and react to the bid.

Auto Extension of the Auction Timings

In the event of bids in the last few minutes of the scheduled bid time, the Bid Timings are automatically extended for a specified

period from each such bid. Such Auto Extension shall continue until no bids are placed for the specified period (Engine remains

inactive for the specified period). The Inactivity Time for Auto Extension purpose is normally 3 minutes. Mjunction however

retains the right to change the same. The Inactivity Time applicable for the particular On-line Bid shall be communicated to the

bidder if it will be set to a value less than 3 minutes.

End of the Reverse Auction

End of the Auction refers to the termination of the bidding event signaling an end to the price discovery process.

Auction Report: mjunction would provide an Auction Report to the Client containing a summary of the bidding event and

outcome. The Auction Report would constitute the official communication from mjunction to the client about the outcome of the

Reverse Auction.

ID and Password - Password and ID shall be given to all the eligible by the mjunction for enabling the bidder to participate in

the Reverse Auction.

Start –Bid Price – Start Bid Price is the Maximum Price, which will be accepted by the Reverse Auction engine. Supplier have to

quote a price lesser than the Start Bid Price for participating in the Reverse Auction. The computer shall not accept Price higher

than Start Bid Price for a lot. Bidding will start at start Bid Price to be intimated in advance to the vendors eligible for bidding.

This will be put up on the site and will also be communicated in advance through Fax/ email.

Minimum Decrement- Minimum decrement is the minimum amount a supplier has to reduce in order to beat a higher bid. For

example if a bidder bids Rs 10,00,000/ - for a Market, others, in order to beat this bid, have to quote a lower price with a minimum

decrement say of Rs 2,500/- i.e. in order to be eligible they have to quote Rs. 9,97,500/- (or lower) for the same Market. This

minimum decrement shall be pre-decided by Steel Authority of India Limited and will be in- built in the auction engine.

6.0 Mjunction retains the right to extend or cancel or reschedule the reverse auction on any of the

following reasons: Sl No Circumstance Action

01 Auto Extension Of

Bidding Time

ONLY in the event of any bid being placed in the last 3 minutes of the

scheduled bidding time, the bidding time shall automatically extend by 3

minutes from each such bid. This Auto Extension mechanism remains activated

until a continuous inactivity period (i.e. no bids being placed by any bidder) of 3

minutes is reached at which point the market shall close

02 Cancellation of event /

bid

1. The number of confirmed bidders is deemed insufficient to conduct the

reverse auction.

2. On Advice of the Buyer

3. MJ on its own accord - in case of situations where it is felt that continuance

of the auction proceedings is prejudicial to the smooth conduct and/or the

integrity of the auction process.

4. Cancellation/ premature termination of the reverse auction with/ without a

subsequent rerun of the auction on a mutually decided date between Client and

MJ.

5. Cancellation of a wrong bid

6. Locking a bidder‟s account (suspension of operations in the account)

03 Poor Participation 1. Manual extension carried out if less than 10 bids received

2. Reserve / expected price not met.

3. It is determined that one or more bidders have submitted bids which

are clearly below Cost

4. On the advice of the Buyer

04 Unable to access the

module due to

infrastructural problems

- Internet Problems

1. Manual extension carried out till connectivity restored or MJ will bid on

behalf of bidder after obtaining suitable authentication.

2. The number of extensions and the time involved in each extension is on the


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being reported by

bidders

judgment of the auction controller concerned.

05 MJ server not able to

connect to the Internet

cloud

To the extent possible, all auctions will be extended until the problem is

resolved/ internet connectivity of MJ machine improves.

Ability to extend depends upon time available, as also ability of MJ staff to

connect to the MJ machine.

06 Power failure/ Planned

power shutdown in his

area reported by an

interested supplier

MJ will bid on behalf of bidder after obtaining suitable authentication. (The

party will inform his minimum price and will also inform his user id and

password)

Manual extension may be involved if the call is received just before closure, and

MJ staff does not have sufficient time required to make a bid.

At the request of the Client, mjunction may permit bidding through a combination of online and offline means

(offline means including phone/fax/email). However in such event, mjunction would not be responsible for any errors

in transmission or entry of the information received in the offline medium. It must be expressly understood that such

facilities if and when extended are only for the convenience of bidders and, while reasonable care and caution shall

be taken by mjunction, the ultimate responsibility for the same shall rest with the bidder/s.

7. Training Module (STEPS TO PERFORM FOR BIDDING IN AN ON-LINE REVERSE

AUCTION)

WELCOME TO THE ONLINE SOURCING PLATFORM OF buyjunction

buyjunction.in

Log in to our website to participate in Online Auctions

CONTACT DETAILS

FAX : 033-6603 1734 / 033-6613 3222

CONTACT DETAILS DURING AUCTION:

033-6610 6160 / 033-6610 6446

CONTACT DETAILS BEFORE & AFTER AUCTION:

Mr.Jaideep Boruah: 033-6610 6446

ATTENTION PLEASE:

1. During Auctions you may contact us only for guidance only at the Auction Room nos. All conversations

will be on record. Calls made to any other contact nos. or mobiles will not be entertained during the

auction period.

2. Be active during bidding. Keep your contact nos. free from any other calls so that our representatives

can reach you easily whenever required.

3. Ensure stable connectivity. Use Proxy bidding wherever provided. Manual Extensions will not be

provided at the request of a bidder. M/s mjunction services limited or the Client will not be responsible for

any disconnectivity or infrastructural failure at your end.

4. Keep your email inbox open to receive any files, if sent, during the event.

5. Bid ahead of close time. Do not wait till the last few seconds to bid. Your bid may not finally get

registered in the system due to slow connection speed at your end or due to the time lag between your

server and our server.

6. Only authorized people should bid. Bids once placed will have to be honoured. Wrong bids, if placed for

whatsoever reason will not be DELETED from the system. Please be careful while bidding.

7. You need to change your password to keep it secure. Mjunction or client will not be responsible for any

misuse of your Login ID and password.

STEPS TO PERFORM FOR BIDDING IN ONLINE SOURCING PLATFORM OF buyjunction

1. Connect to the Internet.

2. Launch Internet Explorer browser or Netscape Navigator.


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3. In the address bar, type the path buyjunction.in& click on “Log in for Online Auctions” located

on top right side of the screen.

For practicing use the following Login Id & passwords:

Please do not change the demo passwords.

Demo ID Password

01 100000 100000

02 100001 100001

03 100002 100002

04 100003 100003

For the actual event use login ID provided by us.

AFTER LOGIN INTO THE SITE WITH YOUR USER ID, CHANGE PASSWORD TO CONTINUE.

UPDATE PROFILE

To update profiles of User &Organization , click on right side of screen. Please keep the same

updated always.

DOWNLOADING DOCUMENTS

On the left pane of the screen click on “DOWNLOAD”. Click on respective hyperlink to get the

relevant document.

IMPORTANT MESSAGES, if any, during the event will be flashed on top of the screen.

A. TO PARTICIPATE IN ONLINE REVERSE AUCTION

4. Click on BID (S) to proceed for auctions.

5. Click on ADD to participate in bidding.

The screen has two parts horizontally divided – Bid Summary Screen&Bidding Screen.

6. Bid Summary Screen: Bid Summary Screen(Top Screen) will provide the latest update of all the

running markets. It refreshes automatically to provide you the latest market status, current market

price. This is viewable only for those items where you have placed a valid bid which is equal to or

less than the Start Bid Price.

7. Bidding Screen: Choose the item / items you want to give your price by entering the price amount

in the respective box under “NEW BID” and then clicking the respective check boxes in the extreme

left column. Next click on the “SUBMIT” button placed at the left bottom of the screen.

The bid to placed can be of two types – Normal Bid & Proxy Bid.

Normal Bid is a direct bid being placed manually.

Proxy Bid :This is the most preferred way to bid.The lowest value that you can offer to supply is fed

in the system for the system to bid on your behalf. This value is not known by any other bidder and

rests at the backend of the system. This is a feature provided to you to keep you:

the leading bidder till the lowest bid value fed in the system till some other bidder places a bid

lower than yours.

safeguards you from any disconnectivity /infrastructural failure (power, computer, link, slow

speed etc) or other problems.

Where more than one Market/Lot is running simultaneously.

Pre-occupied and not in a position to put normal bids

How to activate: Simple. Place your lowest bid value under “NEW BID” and click on the check box

under “PROXY” (A tick mark will appear). Then select & submit the bid. Once the proxy is activated

the bids are placed automatically as per the minimum decrements upto the limit to which you have

activated the proxy. The lowest value of your proxy bid amount is not visible by any other bidder.

If two bidders activate two different proxy amounts, the market will come to a bid value which is lower

of the two.


53

Example : Suppose, the current bid in the market is Rs.1500 and the min. decrement is Rs.10 and you

have activated proxy till Rs.1450. Now say another bidder places a bid of Rs.1480, the system

automatically bids Rs.1470 on your behalf at the same time and keeps you as a leading bidder.

“DO REMEMBER THAT TILL A HAMMER APPEARS ON YOUR SCREEN YOU ARE

NOT A LEADING BIDDER.”

8. A message will appear under “Result”. If the bid is a valid or accepted bid, you will now be able

to see the market status on the top screen.

9. If your bid is the Leading bid, then the picture of a hammer will appear on the top screen. If

not repeat the step 7 to improve your bid to be in the winning position. Bids need to placed in

multiples of Bid decrement only.

10. It is possible that more than one supplier‟s same lowest price is accepted in the system. This

becomes a TIE BID. The position/Rank will be decided on the basis of time. This happens when a

proxy bid of one supplier reaches the threshold limit and a normal bid of the same value from another

supplier is placed. Only one bidder will see the hammer in the screen. Hence the other bidder needs to

improve the price to see the hammer in the screen and be in a winning position.

11. The On-line Event of the particular item stops at the close time mentioned as per the schedule if

there is no bid in the last 3 minutes of the close time. If there is a bid in the last 3 minutes, the close

time will automatically be extended by another 3 minutes and so on till no further bids are received in

the system. This is due to a “Auto Extension mechanism” working in the system. However if

mjunction or the client feels that the price obtained is not appropriate or for any other reason under

mjunctions / clients discretion, the close time may be manually extended. However for SAIL events,

time may be extended when there is no bids, single bid or technical failure of our server situation.

12. New Lots/Markets launched will appear on the top screen. For submitting your bid in new lots,

click again on BID (S) and then on ADD button to view the new markets and repeat the steps from 7.

13. To “Logout” click the “Sign Out” button at top of the screen.

C. TO PARTICIPATE IN ONLINE PRICE MATCH

Steps 1 to 5 is same as mentioned above. Directly go to step 7. The displayed Bid Price cannot be

changed. Only select the check box and SUBMIT the bid to acknowledge matching the displayed

price. No market status will be available.

VIEWING CLOSED AUCTION DETAILS

Click on BIDS on the left pane of screen & click on VIEW, CLOSED AUCTIONS & then

CODE to check closed auction details. For each of the Codes the details will appear. The details

will be available for maximum of 24 hrs.

“In case you have any complaint/suggestion regarding mjunction’s e-reverse auction, kindly

log into auction.buyjunction.in and use the feedback link given on the top left hand side of the

page .Complaints/Suggestions regardingmjunction’s e-reverse auction received through any

other mode will not be treated as formal”


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FORM - 1

(To be submitted on Supplier‟s Letter Head)

Format for Acceptance of General Terms & Conditions, Commercial Terms and all other Terms of

the Reverse Auction

We _____________________________________________________________

(Supplier Name)

having registered office at ___________________________________________

(Address)

agree to all the Commercial, General & other Terms & Conditions listed in the

Global Tender Enquiry No. SAIL/BSP/MN ORE/I/2014 dated 12.07.2014 for Import of Manganese Ore

through Reverse Auction.

We confirm that we are in a position to supply Manganese Ore as per details given in RFQ. We have also

understood the Reverse Auction Process and the Reverse Auction rules and special instructions given in

the RFQ. We agree to participate in the Reverse Auction and abide by the rules.

We nominate an executive, whose details are given below, to put the bids on our behalf.

The details of the person authorized to bid on our behalf is as follows.

Name & Designation :

E-mail ID :

Contact phone nos. :

Address :

(Signature & Seal)

Place :

Date :


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FORM-2

Format for submitting last quoted prices

(To be submitted on Company Letter Head of the Bidder)

(To be sent within 30 mins of conclusion of the Reverse Auction)

To,

mjunction services limited

1st Floor, Tata Centre

43, Jawaharlal Nehru Road

Kolkata – 700 071

Fax: 033 – 2288 3279

Ref: Reverse Auction for supply of Manganese Ore to SAIL held on …………..

Reference above, we hereby confirm our last quoted prices in the Reverse Auction held on ……………..

for supply of Manganese Ore to SAIL.

Item Last Quoted Price

Manganese Ore

We also confirm that we will submit price break-up, within two hours from the date of Reverse Auction.

Signature :

Name :

Designation :

Date :


56

PART - V

INDIAN AGENTS OF FOREIGN SUPPLIERS – REGISTRATION & OTHER DETAILS

1.0 There shall be compulsory registration of agents for all Global (Open) Tender and Limited Tender

of SAIL Plants/Units. An agent who is not registered with SAIL Plants/Units shall apply for

registration in the enclosed format.

2.0 Registered agents will file an authenticated Photostat copy duly attested by a Notary Public/

Original Certificate of the Principal confirming the agency agreement giving the status being

enjoyed by the agent and the commission/remuneration/salary/ retainership being paid by the

principal to the agent before the placement of order by SAIL Plants/Units.

3.0 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 shall be submitted by the party (i.e. Principal)

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

4.1.0 Tenderers of Foreign nationality shall furnish the following details in their offer.

4.1.1 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 SELLER/PRODUCER(MINE OWNER), it shall be confirmed whether it is real substantial

SELLER/PRODUCER(MINE OWNER) and details of the same shall be furnished.

4.1.2 The amount of commission/remuneration included in the quoted price(s) for such

agents/representatives in India.

4.1.3 Confirmation of the Tenderer that the commission/ remuneration if any, payable to this

agents/representatives in India, if any may be paid by SAIL in India in Indian Rupees only.

4.2.0 Tenderers of Indian Nationality shall furnish the following details in their offers.

4.2.1 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 to make an offer in India in response to tender either directly or

through the agents/representatives.

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

himself.

4.2.3 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 SAIL in India in equivalent

Indian Rupees on satisfactory completion of the Project or supplies of Stores.

4.3.0 In either case, in the event of a 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 about 90 days after the discharge of the obligations under the contract.

4.4.0 Failure to furnish correct and detailed information as called for in paragraph-4.1.0 and paragraph-

4.2.0 above will render the concerned tender liable to rejection or in the event of a contract

materializing, the same liable to termination by SAIL. Besides this, there would be a penalty of

Banning Business Dealings with SAIL or Damage or Payment of a Named Sum.

4.5.0 One agent cannot represent two suppliers or quote on their tender. In case one agent represents two

suppliers or quotes on their behalf in this tender, both the tenders may be liable for rejection.


57

APPLICATION FORM FOR REGISTRATION

IMPORTANT INSTRUCTIONS

(1) WHEREVER POSTAL PIN CODE IS DESIRED, IT MUST BE GIVEN.

(2) FULL AND UNAMBIGUOUS REPLY TO EACH QUERY MUST BE GIVEN OR ELSE YOUR APPLICATION MAY NOT BE PROCESSED AT ALL.

(3) WHEREVER NECESSARY EXTRA SHEET CAN BE ATTACHED AND MENTION OF THIS MAY BE MADE AGAINST

THE APPROPRIATE COLUMN OF THE APPLICATION.

APPLICATION FOR REGISTRATION OF INDIAN AGENTS

FILE NO.----------------------------

(not to be filled by applicant)

PART – I

(i) Name of the firm

(ii) Date of incorporation

(DO MM YY) -------------------------------------------------------------------

(iii) Address of the Registered Office

PIN CODE -----------------------

TELEX ADDRESS ---------------------

TELE. NO. --------------

(iv) Address of the Head Office

PIN CODE ----------------------

TELEX ADDRESS -----------------

TELE. NO. --------------------

(v) Address of the Branches

Address Telex Address Tele. No.

------------- ------------------- ---------------

-------------- ------------------- ---------------


58

(vi) If you are registered with SAIL, give Registration Number

PART-II

(i) Status of firm (put a tick 1. Proprietorship concern

mark to whichever is applicable) 2. Partnership concern

3. Private Limited

4. Public Limited

5. Central Govt. Undertaking

6. State Govt. Undertaking

(Detailed structure of your firm may be furnished at Appendix „A‟)

PART-III (i)

a) Name of the Principal (whose agent is seeking registration)

b) Address

PIN CODE-------------

TELEX ADDRESS-----------

TELE. NO.-----------------

c) Stores for which registration required

S. No. Store Name

ii) Are you sole selling agent for the principal : Y/N

(if yes, furnish copy of valid agreement duly attested)

a) Date of appointment as sole selling agent :

b) Date up to which appointment is valid :

c) Percentage of commission :

d) If the agent has authority to commit and sign on behalf of the principal

Y/N

iii) Whether you are prepared to quote and receive payment in India Rupees


59

Y/N

(iv) Have you facility to offer after sales service

Y/N

(if yes, give details of facilities at Appendix-B)

v) Have your firm/ partners/ proprietors/ Directors have done business in the past with

a) SAIL Y/N

b) Any other Government Department Y/N

(If yes, give details at Appendix – c)

Place : Signature of Applicant

Proprietor/ Authorised partner/

Date : Director


60

APPENDIX „A‟ – STATUS OF THE FIRM

(i) If your firm incorporated under the Companies Act or any other Law, If so, specify.

(ii) Is your firm registered under the Indian partnership Act, 1932.

(iii) If a company registered under the Indian companies Act, 1 of 1956, State:-

a) Name in which it is registered (Furnish copy of Articles of association and Memorandum).

b) The place at which registered along with the Registrar designation.

c) Registration of certificate Number and date of registration (True copy authenticated by a

Notary Public to be furnished).

d) Whether private or public limited.

e) Authorised capital of the company.

f) Issued/ Subscribed capital.

g) Paid up capital.

h) Place from which business is carried on:

i) Income Tax Circle/ Ward/ Districts in which the company is assessed to Income Tax C..R. No.

/ P.A.N.

j) Managing Directors/ Whole time Director/ Manager – Name and Address.

k) Board of Directors (Name and Address)

l) If a subsidiary of an Indian or Foreign/ Holding Company

m) Full details of any other companies in India of the parent/ Holding company.

n) Details of other companies in which the directors have financial interests or are represented on

the Boards.

(iv) PARTNERSHIP FIRMS

a) Whether the firm is registered under the Indian partnership Act 1932 or any other Act requiring

the registration of the firm/ partnership.

b) Name/ and or style in which it is registered.

c) Name and address of Registrar with whom registered.

d) Date of such registration and number and date of registration certificate.

e) Names and addresses of all partners with extent of share held by each partner.

f) Place from which the business of partnership is carried on.

g)

i) Whether in accordance with the partnership deed, any one partner has been authorized to sign

and paid the firm in all contractual obligations including power to refer the cases to arbitration.

If so, furnish one copy of partnership Deed duly authenticated by a Notary Public.


61

ii) If the answer is in he negative, whether a separate power of attorney exists in favour of any

particular partner to perform such functions. In such a case a copy duly attested by a Notary

Public should be submitted.

h) Whether income tax has been paid by each partner during all the previous years.

i) Income Tax Circle/ Ward/ District in which the partnership is assessed.

ii) Income Tax Circle/ Ward/ District in which the partners are separately assessed with P.A.N./

G.I.R. No.

iii) Whether partners have any connection with any other Undertaking/ Firm. If so, fill details to

be given indicating names and addresses of the Undertaking, the extent of shares etc.

(v) PROPRIETORSHIP FIRM & OTHERS

a) Name and/ or style of firm

b) Proprietors name and address

c) Full details of other undertaking owned/ controlled by the proprietor.

d) Name and style in which business is carried on.

e) Place from where business is carried on.

f) Names and addresses of all members/ co-partners, with nature extent of their interest.

(In the case of a Jt. Family information on all persons to be given.)

g) Income Tax Circle/ Ward/ District in which the concerned and its proprietor member/ co-

partners are assessed for income tax with P.A.N./ C.I.R. No. of each persons.

(vi) i) Whether the applicant firm, Directors/ Partners were at any time prosecuted for any offence by

any court for Civil/ Criminal/ economic offences.

ii) If yes, give details of offence and penalty.

APPENDIX „B‟ – DETAILS OF AFTER SALES SERVICE

(a) Name and addresses of branches in India where such facilities are available.

(b) Manpower details indicating :-

i) Total :

ii) Qualifications of each :

iii) Work experience of each :

iv) Arrangements to supply the equipment and spare parts :

v) Extent of stock and value maintained.


62

APPENDIX „C‟

DETAILS OF BUSINESS DONE WITH SAIL PLANTS OR ANY

OTHER GOVERNMENT DEPARTMENT IN THE PAST.

(i) Are you already registered with any of the SAIL Plants.

(ii) Have you applied to SAIL Plants for registration ? If so, with what result?

(iii) Are you doing business with any SAIL Plants under any other name? If so, give details.

(iv) Have the partners/ proprietors/ Directors of your firm done business with SAIL Plants in the past? If

so, indicate names and addresses.

(v) Have you executed any orders placed on you by SAIL plants or any other department of the

Government of India in the last 3 years? If so, details to be furnished.

1. I-----------------------------------son of---------------------------certify that the agency

agreement is current and that the applicant firm has no other agreement with any of its

principals for payment of commission other than what is stated herein either abroad, or in

India in foreign currency.

2. I also certify that I am duly authorized to submit this application on behalf of and bind the

firm proprietor/ authorized partner/ authorized constituted attorney.

3. I also confirm that in the event of any change in agency agreement, termination of the

agreement and/ or change in the management of the applicant firm, the same will be duly

intimated to the SAIL within 15 days of such change.

(Signature of applicant)

Proprietor / Authorised

Partner/ Director

Witness by (1)

(2)

Date:----------------


63

DOCUMENTS TO BE ENCLOSED WITH THE

APPLICATION FORM

(This page may be detached from the application and retained by the applicant)

1) Copy of valid agreement with the foreign principal duly attested by a Notary Public. Agreement should

invariably include the following:-

a) Date of appointment of the agent.

b) Date up to which appointment is valid.

c) Percentage of commission.

d) If the agent has the authority to committed sign on behalf of the principal.

e) Agency commission in rupees only.

f) Area/ place for which the agreement is valid.

g) Stores/ item included in the agreement

2) Documentary proof of the status of the firm :

a) For the limited companies.

i) Copy of Memorandum and Articles of Association duly notarized.

ii) Copy of certificate of incorporation, authenticated by Notary Public.

iii) General power of Attorney in respect of officer, if any.

b) Partnership Firms :

i) Copy of partnership deed fully authenticated by Notary Public.

ii) Power of Attorney in respect of partner, if any, duly notarized.

iii) Certified copy of Entry in Form „A‟.

3) Copy of Income Tax clearance certificate.

4) Copy of Balance Sheet.

5) Affidavit of banning on non-judicial stamp paper of Rs. 5/- duly notarized (sample enclosed).

6) Performance against orders placed by DGS&D/ Central Govt. Departments / State Govt.

Departments./ Public Sector Undertaking, if any.


64

(To be executed on Non Judicial stamp paper and attested by a Notary Public of Ist class Magistrate).

AFFIDAVIT

I/We--------------------------------------Son of------------------------------am/ are proprietor/ Partner/ Directors of M/s-

-----------------------------------with their registered office at----------------------------------------.

I/ We solemnly affirm that there has been no change in the address of our firm/ or factory/ Bankers in the

constitution of the firm/ in the plant and machinery installed in the factory/ and in the line of products being

manufactured by the firm or reduction/ changes in technical personnel, quality control arrangements since the

date of grant of last registration by SAIL.

The information given above is true to the best of my/ our knowledge and belief.

Signature of Deponent(s)

Firm‟s/ Company Seal

Place -------------

Date ----------------

Sworn / Affirmed before a Notary Public or Ist Class Magistrate on the -----------------------------day of -----------

(Note: Please strike out the entries which are not applicable. The changes, if any, should be indicated in

your forwarding letter.)


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INTEGRITY PACT

Between

Steel Authority of India Limited (SAIL) 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.

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.

(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 the Chief Vigilance Officer and in addition can initiate disciplinary actions.

Section 2 – Commitments of the Bidder(s)/ contractor(s) (1) The Bidder(s)/ Contractor(s) commit themselves to take all measures necessary

to prevent corruption. 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.


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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.

(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 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 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. 8-17).

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.

(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.

Section 5 – Previous transgression

(1) The Bidder declares that no previous transgressions occurred in the last three years with any other Company in any country conforming to the


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anti-corruption approach or with any 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.

(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) /

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

(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. It will be obligatory for him to treat the information and documents of the Bidders/Contractors as confidential. He reports to the Chairman, SAIL.

(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, SAIL within 8 to 10 weeks from the date of reference or intimation to him by the


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Principal and, should the occasion arise, submit proposals for correcting problematic situations.

(7) If the Monitor has reported to the Chairman SAIL, a substantiated suspicion of an offence under relevant IPC/ PC Act, and the Chairman SAIL 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.

(8) The word „Monitor‟ would include both singular and plural. The Independent External Monitors of Integrity Pact in SAIL are (i) Mr SK Tuteja and (ii) Ms Chitra Chopra.

Section 9 – Pact Duration This Pact begins when both parties have legally signed it. It expires for the Contractor 12 months after the last payment under the contract, and for all other Bidders 6 months after the contract has been awarded. If any claim is made / lodged during this time, the same shall be binding and continue to be valid despite the lapse of this pact as specified above, unless it is discharged / determined by Chairman of SAIL.

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. New Delhi.

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

(3) If the Contractor is a partnership or a consortium, this agreement must be signed by all partners or consortium members.

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

(5) In the event of any contradiction between the Integrity Pact and its Annexure, the Clause in the Integrity Pact will prevail.”

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

(Office Seal) (Office Seal)

Place --------------

Date --------------

Witness 1:

(Name & Address) _____________________________

_____________________________

_____________________________

_____________________________

Witness 2:


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(Name & Address) _____________________________

_____________________________

_____________________________

_____________________________


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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 SAIL Plants/Units 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

SAIL Plants/Units.

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 SAIL 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.

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 SAIL 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 SAIL. Besides this there would be a penalty of banning business dealings with SAIL or damage or payment of a named sum.

*******


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GUIDELINES ON BANNING OF BUSINESS DEALINGS

CONTENTS

S.No. Description

1. Introduction

2. Scope

3. Definitions

4. Initiation of Banning / Suspension

5. Suspension of Business Dealings

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

7. Banning of Business Dealings

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

9. Show-cause Notice

10. Appeal against the Decision of the Competent Authority

11. Review of the Decision by the Competent Authority

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


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1. Introduction

1.1 Steel Authority of India Limited (SAIL), being a Public Sector Enterprise and ‘State’, within the meaning of Article 12 of Constitution of India, has to ensure preservation of rights enshrined in Chapter III of the Constitution. SAIL has also to safeguard its commercial interests. SAIL 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 SAIL to deal with Agencies who commit deception, fraud 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 SAIL 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 SAIL generally provide that SAIL 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 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 (SAIL) 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.

2.5 These guidelines apply to all the Plants / Units and subsidiaries of SAIL.

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 / Bidder /

Tenderer’ shall mean and include a public limited company or a private limited company, a firm whether registered or not, an


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individual, a cooperative society or an association or a group of persons engaged in any commerce, trade, industry, etc. ‘Party / Contractor / Supplier / Purchaser / Customer/ Bidder/ Tenderer’ 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 SAIL) Wide Banning The Director (Technical) shall be the „Competent Authority‟ for the purpose of these guidelines. Chairman, SAIL shall be the „Appellate Authority‟ in respect of such cases except banning of business dealings with Foreign Suppliers of imported coal/coke.

b) For banning of business dealings with Foreign Suppliers of imported coal/coke, SAIL Directors‟ Committee (SDC) shall be the „Competent Authority‟. The Appeal against the Order passed by SDC, shall lie with Chairman, as First Appellate Authority.

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

d) For Plants / Units only Any officer not below the rank of General Manager / Addl Director appointed or nominated by the Chief Executive of concerned Plant / Unit shall be the ‘Competent Authority’ for the purpose of these guidelines. The Chief Executives of the concerned Plants / Unit shall be the ‘Appellate Authority’ in all such cases.

e) 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”.

f) Chairman, SAIL 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 department set up by the Central or State Government having powers to investigate.


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

4. Initiation of Banning / Suspension Action for banning / suspension 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. Besides the concerned department, Vigilance Department of each Plant / Unit /Corporate Vigilance may also be competent to initiate such action.

5. Suspension of Business Dealings

5.1 If the conduct of any Agency dealing with SAIL 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 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 Plants / Units. 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 under investigation is very serious

and it would not be in the interest of SAIL, as a whole, to deal with such an Agency pending investigation, the Competent Authority may send his recommendation to Chief Vigilance Officer (CVO), SAIL Corporate Office alongwith the material available. If Corporate Office considers that depending upon the gravity of the misconduct, it would not be desirable for all the Plants / Units and Subsidiaries of SAIL to have any dealings with the Agency concerned, an order suspending business dealings may be issued to all the Plants / Units by the Competent Authority of the Corporate Office, copy of


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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 of imported coal/coke, 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 (CIG) 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 SAIL to continue to deal with such agency, pending investigation, Corporate Vigilance may send such recommendation on the matter to Executive Director, Coal Import Group (ED, CIG) to place it before a Committee consisting of the following :

1.ED (F&A)/Head of Corporate Finance, 2. ED, CIG/Head of CIG – Convenor of the Committee

3.ED, CMMG/Head of CMMG, Corporate Office 4.ED (Law)/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, CIG.

iii) The comments / recommendations of the Committee shall then be placed by ED, CIG before SAIL Directors‟ Committee (SDC) constituted for import of Coal. If SDC opines that it is a fit case for suspension, SDC may pass necessary orders which shall be communicated to the foreign supplier by ED, CIG.

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. Ground 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 SAIL, during the last five years;


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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

SAIL 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 including misrepresentation of facts and/or fudging/ forging/ tampering of documents;

6.8 If the Agency uses intimidation / threatening or brings undue outside pressure on the Company (SAIL) 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 Willful indulgence by the Agency in supplying sub-standard material irrespective of whether pre-despatch inspection was carried out by Company (SAIL) or not;

6.11 Based on the findings of the investigation report of CBI / Police against the Agency for malafide / unlawful acts or improper conduct on his part in matters relating to the Company (SAIL) 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

(SAIL), 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 Plant / Unit except Corporate Office can impose such ban unit-wise only if in the particular case banning of business dealings by respective Plant / 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


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Plant / Unit. Any ban imposed by Corporate Office shall be applicable across all Plants / Units of the Company including Subsidiaries.

7.2 For Company-wide banning, the proposal should be sent by ACVO of the Plant / Unit to the CVO through the Chief Executive of the Plant / 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.

The Corporate Vigilance shall process the proposal of the Plant / 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 Plants / Units. 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 SAIL. 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 Plant / 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 General Manager / Dy. General Manager each from Operations, Finance, Law & CMMG. Member from CMMG shall be the convener of the committee. The functions of the committee shall, inter-alia include: 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 view that action for

banning business dealings with the Agency is called for, a show-


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cause notice may be issued to the Agency as per paragraph 9.1 and an enquiry held accordingly.

7.5 Procedure for Banning of Business Dealings with Foreign Suppliers

of imported coal/coke. i) Banning of the agencies shall apply through out the

Company including Subsidiaries. ii) Based on the complaint forwarded by ED (CIG) or received

directly by Corporate Vigilance, an investigation shall be carried out by Corporate Vigilance. After investigation depending upon the gravity of the misconduct, Corporate Vigilance may send their report to Executive Director, Coal Import Group to be placed before a Committee consisting of the following :-

1. ED (F&A)/Head of Corporate Finance, 2. ED, CIG/Head of CIG – Convenor of the Committee

3. ED, CMMG/Head of CMMG, Corporate Office 4. ED (Law)/Head of Corporate Law

The Committee shall examine the report and give its comments / recommendations within 21 days of receipt of the reference by ED, CIG.

iii) The comments / recommendations of the Committee shall be placed by ED, CIG before SAIL Directors‟ Committee (SDC) constituted for import of Coal. If SDC opines that it is a fit case for initiating banning action, it will direct ED (CIG) to issue show-cause notice to the agency for replying within a reasonable period.

iv) On receipt of the reply or on expiry of the stipulated period, the case shall be submitted by ED (CIG) to SDC for consideration & decision.

v) The decision of the SDC shall be communicated to the agency by ED (CIG).

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 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 but LTE may not be given to the Agency concerned.

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


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mis-behaviour 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 SAIL, 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 lie to 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.

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.


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12.3 If business dealings with any Agency have been banned by the Central or State Government or any other Public Sector Enterprise, SAIL 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, Plants / Units may formulate their own procedure for implementation of the Guidelines and same be made a part of the tender documents.

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ANNEXURE VI


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