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RASHTRIYA ISPAT NIGAM LIMITED

VISAKHAPATNAM STEEL PLANT

(A Govt. of India Enterprise)

BRANCH SALES OFFICE,

Chhanni House 1st Floor, 117/LI 452

Near Double Pulia, Navin Nagar

KANPUR 208 025

TENDER ADVERTISEMENT

NOTICE INVITING TENDER FOR APPOINTMENT OF EXISTING ROLLING MILLS AS

STEEL PROCESSING UNITS (SPUs) ON WET LEASE BASIS

1) Sealed tenders in prescribed forms are invited from Existing bonafide, resourceful, financially sound Person(s)/firm(s)/ company(s)/Rolling Mills for appointment as Steel Processing Units (SPU) willing to offer a capacity of minimum 72000 T per annum of their existing plant as per requirements of RINL under SPU Conversion arrangement. The mill shall have a well established TMT REBARS process of either Thermax, Tempcore, Stelmore, Turboquench, and Evcon for conversion of (minimum 72000 metric tons) TMT REBARS (in the diameter range of 6 mm to 32 mm) and or Structurals per year in AMBEDKARNAGAR DISTRICT, U.P

2) Existing Units having production capacity of Hot Rolled Long products of 72,000 MT per annum in any one of the last three (3) financial years and having valid BIS license only can apply.

3) Mills with single product line / 2 product line will only be considered for

SPU- Conversion. Entire capacity of the mill shall be dedicated to RINL/VSP.

4) Although the SPU will be required to convert all the diameters and sizes as per RINL’s requirement, the thrust for conversion for TMT bars will be in the range of 6/8/10/12 & 16 mm.

5) Tender documents duly filled in and signed by an authorized person shall be put in the Tender

Box kept for this purpose in the office of the BSO/RINL at the address as mentioned above latest by 9-6-2012. Tenders can also be submitted by Post/Courier and should reach the above address by the stipulated date and time mentioned above. Tenders must be submitted as prescribed in Instruction to Tender for Conversion of Cast Billets to TMT rebars and /or Structurals.

6) By submitting a quotation the tenderer shall be deemed to have fully familiarized himself with

all requisite details including the quantity and type of materials expected to be converted/produced, as well as information contained in the enclosed Instructions to Tenderers including the Terms and Conditions of the SPU Contract and have fully satisfied himself/ itself of his/ its capabilities to undertake and perform the jobs to the satisfaction of the company. Any alteration or modification or imposition in deviation to the terms and conditions prescribed by RINL in Tender Papers shall be ignored.

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7) Please note that by merely inviting the tenderer to submit the tender, there is absolutely no Commitment, implied or otherwise, at this stage from Company’s side as to the award of actual Contract and no correspondence in this regard will be entertained by the Company. Nor RINL shall be liable in any manner whatsoever, for costs and expenses etc. incurred in responding to this Invitation.

8) Tender document in duplicate along with all other terms and conditions can be obtained from

RINL Branch Sales Office at the above address on payment of Rs 5000/- (Rupees Five

Thousand only) in cash (non refundable) between 9.00 A.M to 5.30 P.M on any working day

up to 8-6-2012. Tender Documents can also be downloaded from the website

www.vizagsteel.com.

9) The tender document should be submitted with necessary EMD. Downloaded tender

documents would, in addition, need to be submitted along with the cost of the tender

documents as stipulated above.

10) Tenders will be opened immediately thereafter, in the presence of such tenderers who may

wish to be present.

11) RINL reserves the right to accept or reject any one or all the tenders without assigning any

reason whatsoever.

(Sr Branch Manager)

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ANNEXURE – 1

RASHTRIYA ISPAT NIGAM LIMITED

VISAKHAPATNAM STEEL PLANT

(A Govt. of India Enterprise)

BRANCH SALES OFFICE,

Chhanni House 1st Floor, 117/LI 452

Near Double Pulia, Navin Nagar

KANPUR 208 025

INSTRUCTIONS TO TENDERERS

1. Scope of work:

i. RINL proposes to enter in to conversion agreement on wet lease basis for the purpose of adding value to its Cast Billets by conversion and to generate additional margin from the converted products

ii. RINL shall deliver the Cast Billets to SPU directly from the plant/Stockyard/Railway Siding or from stockyards of RINL or from public railway siding situated near the works of the SPU or even at the Private Railway siding of the SPU.

iii. While, loading will be done free of cost by RINL at the Steel Plant/Stockyards, SPU shall have to make their own arrangements for unloading the materials and for bringing the same to the SPUs premises from public railway siding/stockyard. The weight at RINL weighbridge shall be final and no allowance shall be allowed on account of weighbridge tolerance.

iv. In case of direct delivery by road to the SPU from the Plant, either transportation cost actually incurred by SPU or freight decided by Mktg/Logistics section from the plant to the nearest stockyard destination of SPU whichever is lower may be reimbursed to the SPU. However, if the raw materials are dispatched by wagons to public railway siding, cost of transportation to the public railway siding shall be borne by RINL and SPU shall have to arrange for unloading and transportation of the same to their premises at their own cost. In case of demurrages levied by Railways, the same shall be paid by SPU.

v. For delivery of Cast Billets from stockyards, the transportation cost for carrying the materials to the premises of the SPU would be borne by the SPU themselves. They shall unload the Cast billets inside their premises at their own cost and stack them after ensuring proper identity of the material. It is expected that SPU would execute the conversion job to the extent of mill capacity or agreed plan within 7 days from the date of receipt of material at their premises and ensure that proper traceability of finished products is maintained with reference to the raw materials.

vi. The finished products shall have to be supplied by the SPU within 7 days from the date of presentation of D.O. or within 7 days from the date of receipt of Cast Billets at their premises whichever is later on actual weighment basis against proper authorization letter from the receiving party/RINL. The SPU must ensure that the quantity so delivered does not exceed the D.O. quantity. No allowance shall be allowed on account of weighbridge tolerance.

vii. Stock of converted products shall be evacuated from the SPU’s premises within 15 days of supply of Cast billets to the SPU, either directly to customers of RINL or to stockyard(s) of RINL, subject to SPU having completed conversion within 7 days of supply of Cast Billets .

viii. SPU shall have to provide Test Certificates in the prescribed format to the receiving party at the time of delivery. 3rd party inspection will be carried out, for which charges shall be borne by RINL.

ix. The SPU will be responsible for cutting of rolls for embossing for the purpose of branding ‘RINCON TMT” in the TMT Bars / RINCONS for Structural’s as may be indicated to the SPU. The SPU will have to ensure that conversion activities are not interrupted due to non-availability of rolls with suitable embossing.

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x. SPU shall have to neatly and adequately bundle and tag TMT Bars with binding wires /wire rods/straps, in the following suggested bundle sizes: 6/8mm-18 pcs, 10mm-12pcs 12mm-8pcs 16mm-5pcs, 20/25/32mm – 4 pieces

(In case RINL supplies any tags/holograms/labels etc the same should be fixed/tied to the bundles of TMT Rebars.)

Tags, as may be decided by RINL, would also have to be fixed on bundles by the SPU. Specific length supplies are to be made without any mix up.

xi. SPU shall comply with all the relevant statutory provisions with all the statutory authorities

like PF, ESI, Labour Act, Excise, VAT/Sales Tax, Service Tax etc. as applicable.

2. Performance Record:

Tenderers whose contract were or have been terminated due to non- performance or unsatisfactory performance shall not be considered eligible for a period of 3 Years.

3 Period of Contract:

The contract shall be for a period of five years from the date of commencement of operations

mentioned in the work order. The same may be extended by 2 years subject to mutual

agreement with same terms and conditions..

4. SPU- Conversion Charges:

i) For the conversion job, SPU will be paid a consolidated Conversion charge (rate) for

supply of one ton of finished products which will broadly be deemed to include the following elements. SPU shall quote their consolidated rates towards SPU- Conversion charges after considering the elements of cost under A and B below.

(A) a. Variable Conversion Cost per ton of finished products

b. Fixed Conversion Cost per ton of finished products c. Profit margin of SPU.

(B) a. Storage/Stacking charges b. Cost of transportation of Cast Billets from RINL stockyard/public railway siding to SPU premises c. Handling cost at Public railway siding /Private siding d. Bending, bundling and metal tagging e. Weighing charges f. Testing and inspection charges (for internal) g. Handling expenses for delivery into customers' trucks h. Cost of cutting and embossing of rolls as per RINL’s design. i. Cost of any other services to be rendered to RINL, as well as to RINL customers.

NB: The elements of costs given above are only indicative and not exhaustive.

(ii) The rates shall be quoted in the proforma mentioned at Part-C (Price Bid) for

obtaining the SPU- Conversion charges.

(iii) SPU- Conversion charges shall be kept valid/firm for one year from the date of tender opening and in case of acceptance of negotiated rates, one year from the date of acceptance of negotiated rates. The charges would be revised after one year from the date of tender opening or date of acceptance of negotiated rates (as the case may be) based on the price variation formula laid down under para 9 of Terms and Conditions.

5 E. M. D:

a) SPUs are required to pay an amount of Rs 37.5 lacs (Rupees Thirty Seven Lakhs and Fifty

Thousand rupees) in the form of Demand Draft/Pay Order/Banker's Cheque/Bank Guarantee with Scheduled Banks in favour of Rashtriya Ispat Nigam Limited, towards EMD at the time of submitting tender documents. No interest will be payable to the tenderers for this EMD

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amount. Demand Drafts/ Pay Orders/ Bankers Cheques/BGs from Cooperative and Gramin Banks shall not be accepted. No request for adjustment of earlier dues against the amount of EMD shall be entertained. In case of BG, the same shall be valid for a period of one year from the date of issue of BG and VSP reserves the right to ask the tenderer for extension of BG validity for a suitable period. EMD shall be forfeited in case of withdrawal of tender before its validity date.

b) In the event the offer of any party is rejected during the course of techno commercial scrutiny

and evaluation, the EMD shall be returned to such tenderer at the earliest possible time from the date of rejection of offer. The EMD, of unsuccessful Tenderers, shall be refunded after issue of work order to the successful tenderer. The same will not carry any interest.

c) EMD in respect of successful tenderer will be retained as a part of Security Deposit, incase

EMD is submitted in the form of DD/Pay order. In case the EMD submitted in the form of BG, the same would be returned to the successful tenderer after receipt of Security Deposit. In the event of the successful tenderer failing to comply with the conditions mentioned in the letter of Intent (LOI) , the EMD shall be liable for forfeiture/encashment subject to confirmation of issuing Bank.

6. Financial Security:

a) Security Deposit (towards performance of contract)

A total amount of Rs 100 lakhs ( Rupees One hundred lakhs ) will have to be paid as Security Deposit(SD) in the form of Pay Order/Demand Draft/Bankers Cheque/Bank Guarantee (as per the format provided at Annexure-8) drawn on Scheduled Banks favouring Rashtriya Ispat Nigam Limited at Ghaziabad . Demand Drafts/ Pay Orders/ Bankers Cheques/BG from Cooperative and Gramin Banks shall not be accepted. The SD shall be submitted within 45 days from the date of issue of LOI. In case of successful tenderer, the EMD of Rs 37.5 lakhs submitted along with the tender in the form of DD/Pay order will be converted into SD and in that case he /they will have to pay a balance amount of Rs 62.5 lakhs to make good the total amount of Rs 100 Lakhs. In case of BG, tenderer has to submit full amount of SD in the form of BG. The Security Deposit shall not carry any interest. BG may be submitted initially for a period of 3 years from the date LOI subject to extension of the same for 3 more years. Extension should be done at least 3 months ahead of date of expiry.

The Security Deposit will be refunded at the end of the contract subject to adjustment of RINL’s claims, if any, due to non-performance/non-compliance of the terms and conditions of the contract.

b) Financial Coverage(towards value of the raw materials):

Besides the Security Deposit for performance , the successful tenderer shall submit one more BG (as per the format provided at Annexure-9) before commencement of operations as mentioned in work order, for covering the value of raw materials to be supplied by RINL, as per the details mentioned below.

Monthly Turnover (Q in M/t)

Total coverage

(Rs in lakhs) for max tonnage

BG coverage

(Rs in lakhs)

Min 6000 2600 650

The validity of BG shall be initially 3 years from the date of commencement of operations as mentioned in the work order subject to extension for further 3 years. Extension should be done at least 3 months ahead of date of expiry The SPU may enhance the value of BG as per his requirement /RINLs requirement for improving the monthly turnover, with no extra cost to RINL. In addition to the above, Custody and Indemnity Bond as per Annexure 10 shall also be taken from the SPU. In exceptional cases, non interest bearing cash deposit in lieu of Bank Guarantee may be allowed for supply of raw materials to SPUs.

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7. Pre bid conference:

To facilitate prospective SPUs to participate in the tender with full understanding of the process RINL shall hold a Pre-bid conference with the intending bidders on a pre-notified date before submission of filled in tender documents. The interested parties or their authorized representatives may attend pre-bid conference.

8. Operational requirements:

(i) The SPU should have a yearly capacity to produce minimum 72,000 MT per annum as below:

A) TMT Rebars : In the diameter range of 6 mm to 32 mm TMT bars with approx. 80 % of production capability in 6 mm to 16 mm range and shall be in straight length, with minimum 90 % of production being in 12 Mtrs and 5 % in length of 10-12 meters. The SPU should also be equipped to accept orders in specific length within plant capability, as required by RINL from time to time without any extra charges to RINL. Normally the following size mix of TMT is desired.

6/8 mm –25 %,10 mm –20 %,12 mm –15 %,16 mm –20 %, above 16 mm –20 %

B) Structurals: ----- (Range will be specified by SPU as per the their rolling capacity). (ii) The total mill capacity of the SPU shall be under the control of RINL. The total operation and

maintenance (including labour, power, fuel, machinery, consumables etc) shall have to be provided by the SPU.

(iii) SPU must be equipped for supplying 100% embossed material as per branding to be

stipulated/prescribed by RINL. Rolls shall be provided by SPU and shall be cut as per RINL design by using Machines like SPARKONIX.

(iv) SPU need to carryout the documentation and other transactions in RINL/VSP SAP System either through Broad band internet or VPN (Virtual Private Network) at their own cost. However RINL/VSP would provide technical advice for establishing the network.

(v) The SPU shall have the facility for microstructure study with photographic facility for

analysis. In addition, the SPU must have Automated control mechanism for TMT Rebar process. However, such automated process is not required for entire production process but will only be required for the water quenching stage of TMT Rebars.

9. Submission of Tender:

Documents to be submitted by the Tenderers will be as under:

a) The tenderers shall submit their tenders in 3 parts. The EMD shall be put in a sealed envelope No. 1 super scribed with 'Tender for SPU at in Ambedkarnagar District, U.P , EMD’ (Part-A). In case the tender documents are down loaded from company’s website, the cost of tender documents in the form of Pay Order/ Demand Draft/Bankers cheque shall be submitted in envelope no.1 along with EMD. Original copy of Chartered Engineer certificate as per proforma mentioned at Annexure-4 to be enclosed.

b) The technical bid shall be put in a separate sealed envelope No. 2 super scribed with ' Tender

for SPU at ------(name of the location to be filled in by tenderer) in Ambedkarnagar District, U.P Technical Bid' (Part-B).

c) The technical bid shall contain the following documents:

i) The tender documents with all the pages dully filled up as required, signed by a person authorized to do so on behalf of the tenderer and stamped with the seal of the tenderer.

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ii) Constitution of the tenderer's concern /firm /company, including the date of registration/ incorporation.

o In case of a company, Memorandum & Articles of Association along with the certificate

of incorporation issued by the Registrar of Companies shall be submitted.

o In case of a Partnership Firm, an authenticated/attested copy of partnership deed and a copy of certificate of registration issued by the Registrar of Firms (if the Firm is registered) are to be submitted.

o In case of a proprietary concern, proof of proprietorship to be produced ( either Sales

Tax registration or registration under any statutory enactment) which recognizes them as a proprietary concern.

iii) Copies of the Audited Balance Sheets for previous 3 financial years or from the date of

Incorporation /establishment of the firm (as the case may be) whichever is later.

iv) Name & address of the Bankers of the tenderer alongwith certificate from the Bankers on financial soundness of the tenderer indicating the particulars of transactions during last three years or from the date of incorporation/establishment of the firm (as the case may be) whichever is later. They should submit a certificate from their bankers regarding their financial soundness i.e. solvency certificate (upto the value of security deposit specified in ITT) as per proforma given at Annexure-3

v) Copy of ISO 9001 Certification duly attested by a Gazetted Officer/Notary Public.

vi) Copy of the BIS license duly attested by a Gazetted Officer/Notary Public.

vii) Proof of possession/ownership of land, through submission of registration extracts i.e scanned copies, such documents furnished by the revenue department of the respective state government.

viii) Copy of ownership documents of Weigh Bridge of 60Mt Capacity or more (preferably electronic weighbridge with print out facility) with 60 Ft platform. Regarding other equipment like cranes/ other handling equipment etc proof of ownership/lease is to be furnished.

ix Copy of license of any one of the processes i.e. Thermax, Tempcore, Turbo quench, Evcon or Stelmore processes for manufacture of TMT BARS.

x Copies of registration certificates of VAT/Sales Tax, Excise and service tax .

xi The following operational details shall be as provided (Read with suggestive specification at Annexure A) viz:

Annual capacity & daily number of shifts worked. Size range and production capacity for the various sizes. Mill size/no. of stands and type of feeding i.e. Automatic/manual. Minimum & maximum size of Billets/other semis that can be used directly. Length of the cooling bed. Facility for third party inspection. Straightening facilities available. Cold/Hot shearing facilities. Facilities of automated control mechanism available for production of TMT Rebars The total production capacity with optimal size wise break-up Details of past experience (if any) in carrying out conversion job for other Main Producers during the last 3 financial years or from the date of Incorporation /establishment of the firm (as the case may be) whichever is earlier

xii) Declaration as to whether the tenderer has any relative, within the meaning of Sec. 6 read with Schedule 1(a) of the Companies Act, 1956, employed in any capacity in RINL.

xiii) Copy of the Power of Attorney in favour of the authorized signatory submitting the tender documents on behalf of the tenderer.

xiv) Copy of AMC for ensuring that the weigh-bridge is in order and copy of calibration certificate issued by Weights and Measures Department of Govt.

xv) Copy of “Integrity Pact” as per proforma enclosed at (Annexure-11) duly signed on all pages.

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xvi) Statement of Undertaking stating that the tender invariably should quote for all the items of Structurals as per the Schedule of Rates.

10 . The tenderer shall fill in the price bid as follows

(i) Consolidated SPU charges (rate) per ton in respect of TMT Rebars from the input materials of Cast billets of 150/200 mm Size and the contract value (multiplication of indicative qty and the consolidated rate) as per Annexure-5.

(ii) SPU charges (Rate) per ton inrespect of individual items of Structurals from the input materials of Cast billets of 150/200 mm Size and contract value (multiplication of indicative qty of each item with the respective rate quoted) as per Annexure-6

(iii) Total contract value which is the sum of contract value arrived for TMT Rebars and or Structurals mentioned at Part-C (i to ii) above as per Annexure-7.

The rates/ contract value quoted by the tenderer shall be both in figures and words and shall be free from corrections or erasures. Any corrections or erasures shall be duly initialed with date by the tenderer. In case of any discrepancy between the rate quoted in figures and words, the rate quoted in words shall prevail.

The duly filled up price bids as per the Proforma for 'Schedule of SPU- Charges' at Annexure-5,6,7 shall be put in a separate sealed envelope No. 3 super scribed with 'Tender for SPU- at ------(name of the location to be filled in by tenderer) in Ambedkarnagar District, U.P - Price Bid' i.e Part-C.

All the envelopes shall indicate the name and address of the tenderer and shall be sealed and put inside another master envelope No. 4, which shall be submitted in sealed condition, by the tenderer. The master envelope No.4 shall be super scribed 'Tender for SPU at------(name of the location to be filled in by tenderer) in Ambedkarnagar, Dist in U.P ' and shall indicate the name and address of the tenderer.

In case of correction/erasing etc., the same should be countersigned by the authorized signatory of the tenderer and stamped with the office seal of the tenderer.

The date & time of opening of the price bid shall be intimated to such tenderers by e-mail/fax( followed by courier) who qualify technically.

11 Receipt of Tenders:

a) The following shall be the accepted modes for receipt of tenders:

- Tenders received by post/courier, up to the closing time as specified herein below: - Tenders received through tender box.

b) RINL will not take any liability for accepting a tender because of any loss or delay in transit

resulting in non receipt and/or delay in receipt of Tender sent by post and/or through courier service.

c) Tenders shall also be received in the Tender Box kept for this purpose up to the closing

time as specified herein below:

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BID SUBMISSION CLOSING DATE & TIME 9-6-2012, 3.00 P.M BID OPENING DATE , TIME & VENUE 9-6-2012, 3.30 P.M

d) Immediately thereafter, the tenders will be opened except the price bid. 12. Rejection of Tenders:

a) Tenders shall be liable for rejection in case of non-compliance in submission of any above

documents i.e as indicated at para-9(c) above. In case any deviation is found in the downloaded tender documents submitted by the tenderers than what has been stated in the original tender document, such tenders shall be liable for rejection, in case the deviations are not withdrawn.

b) In case of receipt of any adverse report in respect of capabilities and performance of a tenderer, from any department of RINL or from Ministry of Steel/ Statutory Bodies/CBI/CVC, before or after opening of Price Bids, then the tender/ quotation submitted by such tenderer shall be rejected stating reasons for rejection and with approval of competent authority on the basis of recorded reasons.

c) Tenders submitted after the scheduled date and time as stipulated shall not be accepted.

13. RINL/VSP shall not give time, for submission of Earnest Money Deposit (either DD/Pay order

or BG) and for submission of Cost of tender documents. RINL/VSP shall give 3 (three) weeks

time for further clarification /rectification of any deficiencies in the tender and seek

clarifications /confirmations / documents / withdrawal of deviations from the terms and

conditions of contract without any revision in prices. In case of failure to rectify the

deficiencies within 3 (three) weeks time, the tender would be rejected summarily and Part-C

(Price Part) of tender would be returned unopened and EMD would be refunded. In case none

of the tenderers rectify the deficiencies within 3 (three) weeks time, RINL/VSP reserves the

right to give further time at it’s sole discretion.

14 . Bank Guarantee towards Security deposit for performance and financial coverage for raw materials may be submitted initially for a period of 3 years subject to extension of the same for 3 more years later. The extension of the Bank Guarantee should be done at least three months ahead of date of expiry. 15. Evaluation of Price Bids:

The date and time of the opening of the price bid shall be intimated to such tenderers who qualify technically. The ranking of tenderer will be done as per the total contract value quoted for the entire range of TMT rebars and or Structurals.

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ANNEXURE – 2

TERMS AND CONDITIONS OF CONTRACT FOR SPU-CONVERSION

1. Definitions:

The following words and expressions used in this Contract shall have the meaning assigned to them except where the context otherwise requires.

The 'Company' shall mean Rashtriya Ispat Nigam Limited (RINL) with its Registered Office at Administrative Building, Visakhapatnam 530 031. And also having one of its Branch Sales Office at Chhanni House, 1st Floor, 117/LI 452 Near Double Pulia, Navin Nagar, KANPUR.

'Regional Manager' shall mean the Head of the Northern Region or any other Officer of the Company for the time being, in- charge of the Region.

'Sr Branch Manager' shall mean the Branch Manager of the BSO/KANPUR under whose jurisdiction the SPU-Conversion premise is situated or any other Officer of the Company for the time being in charge of the Branch.

'Tenderer' shall mean the person, firm/ company or corporation/Rolling Mills submitting a tender against the Invitation to Tender and shall include his / its successors and assigns approved by the 'Company'.

SPU (SPU) shall mean the tenderer whose tender has been accepted by the "Company" and shall include SPUs successors and assigns approved by the Company.

'Contract' shall mean and include the Agreement between the Company and the SPU duly signed by the parties thereto for the execution of the work together with all documents annexed / attached therewith or referred to.

'Public railway siding' shall mean the Railway Goods shed where Railway wagons are placed for unloading and / or booking of goods including Iron & Steel materials (This goods shed may not be a public booking point in the strict literal sense).

'Private Siding' shall mean the Railway siding as defined in the siding agreement with the railways inside the SPUs Yard and where railway wagons are placed for unloading and / or booking of Iron & Steel materials.

'Company's Materials'/Materials shall mean Iron and steel materials dispatched from the company's Plant at Visakhapatnam, materials from other stockyards/locations or other Iron and Steel materials received from time to time by SPU on company’s account.

‘Excepted Matters’ mean those matters in respect of which decision of the Company shall be final and binding upon the successful tenderer.

Selling Price: The monthly operating prices for the particular product as decided by the Sr

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‘Cast Billets’ shall mean Billets of size 150x150mm and 200x200 mm.

‘Raw Materials’ shall mean Cast Billets. 2. Capacity to be committed under SPU- Conversion:

i. The utilization of the rated capacity will be examined by Technical Evaluation Committee for the maximum output from the date of commissioning of plant on a 2 shift basis of 8 hrs each with capital repair of max 10 days in a year apart from planned 1 day weekly shutdown and 7 days closed holidays for the purpose of identifying licensed capacity. In case rated capacity

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utilization was less due to reasons other than technical, TEC may indicate the same for accepting licensed capacity.

ii. 72000 T per annum will be the minimum rated capacity of the mills for consideration under

SPU-Conversion arrangements for TMT Rebars/ and or Structural’s

3. Issue of LOI and Work Order and Agreement:

a) On approval of appointment of specific SPU, RINL shall issue a Letter of Intent (Annexure-12) to the SPU to complete the necessary formalities like, submission of Bank Guarantee, Custody and Indemnity Bond (Annexure-10) etc within a period of 45 days from the date of issuance of LOI.

a) After fulfillment of conditions stipulated in the LOI, work order will be issued to the SPU as per format (Annexure-14). The date of commencement of work in the contract shall be as per the date mentioned in the work order. The SPU will be required to execute a formal agreement on non-judicial stamp paper of value Rs 100/- within 15 days of issue of work order as per format enclosed at Annexure-13. The Advertisement for Tender, Invitation to Tender, Instruction to tenderers, Terms & Conditions of contract along with all the enclosures including the Schedule of rates agreed between the parties and letters exchanged with the SPU shall form part of the contract. Till such time the Agreement is signed, the Letter of Intent, NIT, Invitation to Tender, Instructions to Tenderer, Terms and Conditions, Tender and other documents furnished by SPU shall be treated as a contract between the parties.

4. Transportation of finished products and Door Delivery:

The scheme essentially envisages that SPU shall supply converted products to the customers of RINL against valid delivery order from SPUs premises. However, if a customer prefers to take door delivery at their premises, then Branch Sales Office of RINL shall provide door delivery for all converted products from the SPU’s premises through the transporter appointed by RINL for the purpose. Weight recorded at SPUs weighbridge shall be final. Transport contractor shall be held responsible for any shortage with reference to SPU weighment.

Converted product may also be brought to the Syd. by authorized transporter of RINL for onward delivery to the customer.

In case of stock transfer of converted products from SPU’s premises to any of the RINL’s stockyards the weight as recorded at SPU weighbridge shall be final and Transport contractor shall be held responsible for any shortages with reference to SPU weighment.

In case of delivery from SPUs premises to the customers, the weight recorded in the weigh-bridge of the SPU shall be accepted.

5. Supply of Cast Billets:

i) Cast Billets would be supplied to SPUs on stock transfer basis from plant at Visakhapatnam/nearby Stockyard.

ii) The SPUs based at Plant locations may be allowed to collect Cast Billets directly from

the Plant, through their own arrangements. Depending upon the specification of the finished products, availability, Cast Billets to be supplied to the SPU will be decided. The Cast Billets would be in standard length (up to 15% in short length of Minimum1.5 Mtrs). Linked test certificates for the raw materials would be made available to SPU.

iii) RINL may decide to supply raw materials from Stockyard. /Public railway siding nearby

SPUs premises of SPUs instead of directly delivering the same at the Plant, at their option. The size of the input material to be supplied by RINL shall normally be Cast Billets in sizes 150x150mm and 200x200mm.

Note: However, RINL reserves the right to supply other sizes/length of Semis, depending on availability.

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RINL will arrange for supply of Cast Billets up to the minimum guaranteed capacity i.e. 75% of 72000T per annum. Supplies beyond this quantity by RINL will be subject to availability

6. Recovery of amount in case of non performance/ non compliance of contractual

obligations

a) If the company suffers any losses or damages due to any negligence and / or non-performance of the obligations under the contract by the SPU, the company may without notice and without prejudice to any other right, recover the amount(s) and appropriate the same from the Security Deposit and/ or encash the BG towards the settlement of all loss or damage.

b) However, the company reserves the right to recover such losses and/ or damages by

enforcing the Bank Guarantee and/ or from any of the SPU's Bills pending for payment with the company without prejudice to any other legal remedies / recourse available to the company to proceed against the SPU for recovering such losses / damages.

c) The decision of the company as to the amount of loss (es) / damage(s) suffered by the

company shall be final and binding upon the SPU. d) In the event of BGs being inadequate or fully encashed, the balance of the total sum

recoverable shall be deducted from any sum due to the SPU under this or any other contract with the company. Should such sum also be not sufficient to cover the full amount recoverable, the SPU, on demand, shall pay to the company the balance due.

e) Wherever the BGs falls short of the amount specified in clauses above by the virtue of

any recoveries made by RINL, the SPU shall enhance the value of B/Gs within 15 days so that the total amount of security shall not at any time be less than the specified amount.

f) The Security Deposit will be released to the SPU on termination/expiry of the contract on

his production of:-

- No demand certificate from Railways in favour of the Company (to be obtained by the SPU).

- No pending demands from statutory authorities like Income-tax etc. - No claim certificate in favour of the Company (As per Annexure-15)

7. Payment of Bills:

a) Payment to the SPU for the jobs performed shall normally be made on fortnightly basis on the quantity delivered by the SPU and only after signing of the agreement. Payment shall be made within 30 days (7 days in case of SSI Units) from the date of submission of bills in the BSO provided SPU complies with submission of required documents as mentioned below at (b)

b) For release of payment against Conversion, SPU shall submit following documents to

RINL-BSO for verification of correctness of the quantities billed for, the rates and recoveries in respect of materials released to him and other terms and conditions of the contract :

i. Bills of SPU Charges, ii. Copies of Delivery Challans, iii. Copies of Excise Invoices issued under extant excise rules pertaining to (ii) above and iv. Test Certificates pertaining to the deliveries at (ii) above.

The payments shall be made by Electronic fund transfer to the Bank account of the

Agency.

SPU shall furnish the consent for accepting e-payment as per the format prescribed at

Annexure 21.

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8. Metal loss :

a) For every ton of Cast Billets supplied, SPU shall have to return 0.95 MT of tested finished product for Cast Billets.

b) If the SPU is able to deliver higher yield (exceeding 95 % ) of finished product in

standard length (10-12 Metres), then RINLwill pay bonus @ equal to the prevailing selling price of RINL for the concerned item/minus Rs. 500 per ton in respect of such excess quantity. The Selling Price of the product will be decided by the concerned Sr Branch Manager, communicated on a monthly basis and shall be final. No claim for such quantity or rate would be referable for adjudication.

c) In case SPU fails to supply 95 % of the input as finished products, RINL shall recover

110% of the value of the shortage of finished product at the prevailing selling price by RINL of the items having highest selling price in the contract. The decision of the Sr Branch Manager of RINL will be final in this regard.

d) The arisings including the short length may be disposed by the SPU on monthly basis

after due inspection by RINL officials. 9. Revision of rates:

The SPU conversion charges shall be kept firm for one year from the date of tender opening/date of acceptance of negotiated rates . At the completion of one year from the date of tender opening/date of acceptance of negotiated rates, , based on the escalation formula laid down under, the SPU charges will be revised based on the following weightages and neutralization for each of the components:

Components Weight Neutralization Basis

Labour 10 % 100 % Min or statutory Wages as per notification of labour department of the concerned Central government.

Fuel ( furnace Oil)

20 % 60 % Any PSU oil companies retail outlet

Electricity 25 % 60 % Unit electricity rate (applicable to the SPU category) as per the Electricity provider Co/ SEB in the concerned locality

Overhead 30 % 50 % End month RBI Index on machinery and M/c tools, and transport equipments and parts on a simple average basis.

Profit 15 % Nil

The base date for indices shall be the date of opening of tender or date of acceptance after negotiations. Minimum average wages applicable to the skilled, semi skilled, and unskilled workmen employed by SPU, as notified by the Asst Labour Commissioner Central, Ministry of Labour and Employment, Govt of India published in the Gazette of India.

10. Taxes and Duties :

a) The SPU shall, in accordance with prevailing procedure prescribed by VAT/Sales Tax and Excise Authorities, comply with all necessary formalities such as Registration with VAT/Sales Tax; Excise Dept, etc. and also shall undertake the documentation and timely furnishing of return as stipulated by Excise Authority.

b) The SPU shall ensure that the delivery of converted/finished products is made after payment of the excise duty as applicable. The SPU shall ensure that the applicable excise duty is paid within due date as per Excise law on delivery of converted/finished products.

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c) The SPU shall be reimbursed the differential between Excise Duty deposited on the finished products and credit of Excise duty availed on Cast billets supplied by RINL subject to Excise law in force upon submission of proof of payment along with the bills.

d) The SPU shall bear and pay all taxes, duties and other liabilities in connection with the

discharge of his obligations under this contract, except Service Tax (if applicable). In case Service tax is applicable, the SPU shall submit the tax invoice in the format specified by the Department for obtaining the reimbursement.

e) Income Tax or any other taxes or duties which the Employer may be required by Law to deduct shall be deducted at source and the same shall be paid to the Tax Authorities for the account of the SPU and the Employer shall provide the SPU with required Tax Deduction Certificate. All applicable taxes as per directives of respective State government shall be deducted from the bills of the SPU. Necessary receipt to this effect will be issued to the SPU in the prescribed proforma.

11. Guarantee of work & Imposition of fine:

a) RINL shall utilize Min 6,000T capacity or agreed capacity of the SPU on a monthly basis. (While the dia/section wise percentage break up indicated in the tender in order to indicate the extent of output desired in each size /size range, a consolidated rate to be quoted for TMT rebars in the rate schedule. The actual percentage of work in the specific diameter range can vary.

b) If RINL fails to supply Cast billets for conversion up to 75% of 72000 T or agreed

capacity of SPU capacity, (the minimum guarantee per annum), compensation amounting to 48 % of the SPU conversion charges per ton for the quantities short supplied from the minimum guaranteed quantity shall be paid to the SPU as per the example given below:

c) Example: In case actual cast billets supplied are to the extent of 52000T of SPU

capacity, then 2000 T will be the short supplied quantum in terms of minimum guaranteed quantity per annum (75% of 72,000 MT is 54,000 MT). Assuming the SPU-conversion charges are Rs. 2500/- per ton of finished product and billets equivalent to 2000 T of TMT short supplied, then compensation payable will be Rs.24 lakhs (48% of 2500 X 2000).

Force majeure clause: If the Company and/or the SPU be prevented from

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

d) However, Force Majeure provision shall be invoked if supply of cast billets/MMSM

billets is affected due to break down of Plant and Machinery of the company,

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conditions like strike, lock out, natural calamity etc. or due to any other act beyond its control and no compensation shall be payable in such an eventuality.

e) The SPU shall have to ensure above minimum monthly production of 4500 MT (75% of

6000 MT) of SPU capacity failing which fine amounting to 48% of the SPU conversion charges per ton in respect of the shortfall in the volume shall be paid by the SPU, in a manner similar to the example given at Para (c) above. In case force majeure conditions like strike, lockout, natural calamity etc. affects totally the production in the SPU plant, fine commensurate with the period in which production was suspended due to force majeure conditions, the same may be waived with the submission of authenticated documentary evidence like print media etc. In such an event, SPU-Conversion Charges shall not be payable by the company in respect of the shortfall quantity, if any, towards minimum guaranteed volume.

The force majeure clause shall be operated following authenticated documents like print media.

While the above fine on either side shall be calculated on a monthly basis, there shall be a makeup provision on a quarterly basis on either side, for the purpose of actual payment / recovery. In other words, shortfalls during a month or two during the quarter under consideration can be made good during the quarter as a whole.

f) In case any LD is levied by customers due to the delay by SPU, the same shall be

recovered from the SPU. 12. Basis for determining Excess/shortage: In respect of supply of Cast Billets directly from the Steel Plant, the quantity as indicated in

the Stock Transfer Challan shall be the basis of receipt of the said material by the SPU(s) in

case of receipt by rail and in case of receipt by road, weight of SPU weighbridge shall be final

and RINL transporter shall be held responsible for any shortage with reference to SPU

weighment. In case if SPU directly lifts from plant, weight as recorded in the stock transfer

Challan shall be the basis of receipt. However, in case of delivery of finished products from

SPU’s premises to customers, the weight recorded in the SPU weighbridge shall be accepted.

For this purpose SPU shall get his /their weighbridge(s) duly certified at regular intervals by

Weights & Measures, Deptt. Of the Govt. The SPU shall have an AMC to ensure the weigh-

bridge at their premises is in working order.

i. In case of stock transfer of converted products from SPU premises to any of the RINL’s stockyards the weight as recorded at SPU weighbridge shall be final.

ii. In case of delivery from SPU premises on to the vehicle of the RINL authorized

transporter either for stock transfer or delivery to customers, the weight recorded in the weigh-bridge of the SPU shall be accepted.

Shortage/excess exercise shall be carried out at the end of every financial year or contract period whichever is earlier for which the charges shall be borne by the SPU. RINL reserves the right to conduct stock verification either surprise or periodic.

13. Monitoring of conversion:

RINL may at its sole discretion post its employee(s) in the premises of SPU to oversee the conversion activities. However, this will not dilute the responsibility of the SPU to ensure proper utilization of cast billets supplied for conversion, process inspection including sample testing, and quality control of converted materials. Visits and support from RINL’s technical staff shall also exist. Third party inspection agency would also inspect the process activities. The conversion details on weekly basis shall be submitted by SPU as per the format (Annexure-16)

14. Inspection and Quality control:

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1. To ensure that all materials dispatched to customer/other Branches conform to the BIS specification, regular inspection/testing is to be carried out by SPU as per BIS norms. The SPU shall have facility for microstructure study with photographic facility for analysis. They will have to keep regular samples along with the photographs of microstructure on every 100 Mt of rolling. In addition, representatives of RINL will be visiting SPU's premises for inspection of the following, from time to time:

i) Whether finished materials are produced out of Cast Billets given by RINL for conversion unless otherwise specified.

ii) Sample analysis for confirmation of mechanical properties.

iii) Converted products are dispatched to the customers/RINL's allottees exactly as per description given in the D.O.

iv) Verification of stock and calibration of Weigh Bridge by the weight and measure department of the state.

v) To take care of specific requirements of the customers on quality aspects, inspection by outside agencies like, Lloyds, SGS, RITES etc., shall also have to be carried out at the SPU premises, the cost for which shall be borne by RINL.

vi) To inspect as to whether documentation through the RINL’s ERP /SAP System is being effectively managed. (The roles and responsibilities of Third party inspection Agency for SPU Conversion is as per Annexure- 17.)

2. It has been envisaged that the quality of finished converted products would be assured as

they would be produced from the Cast Billets supplied by RINL only. Proper traceability of the finished products would be maintained with reference to the Cast Billets supplied by RINL.

15 . Issuance of Test Certificates:

i) On appointment, SPU shall apply to the BIS to obtain permission for allowing issuance of Test Certificate in the name of RINL. For this purpose, a copy of the agreement between RINL and SPU shall be provided by the SPU to the BIS unit which grants licenses to the rerollers.

ii) Test Certificate shall incorporate the following in addition to the regular Information:

a) Name, address of the rerollers, ISI mark and their BIS license number.

b) RINL logo and the brand name “RINCON TMT ” for TMT REBARS / “RINCONS” for Structurals.

c) The draft format of TC to be provided ( Annexure-18) may be got approved from BIS, as per jurisdiction of the marks area of BIS.

Executives of RINL would have the right to make frequent visits to the premises of SPU, to examine the processing of materials, and also to check the records being maintained by the SPU and oversee deliveries being effected. The role and responsibilities of SPU Conversion In-charge has been mentioned in Annexure -19.

SPU is to extend necessary help and facilities to the executives of RINL and also to BIS/any other Inspectors, as and when they visit the premises of the SPU for this purpose.

Holding of a valid BIS License is a requirement of the contract. Therefore if the BIS License has been suspended by the concerned authorities, the Sr Branch Manager of the concerned Branch should take immediate steps to suspend supply of input materials (viz. Semis) and suspend rolling operation until the license is reinstated / revoked. In case there is a delay of more than 30 days in revoking of the suspension, action may be taken for removal/disposal of the inventory of semis and finished products by the concerned Branch, from the premises of the SPU at his cost. The SPU would also be liable for any losses on account of non-certified (BIS) finished materials if any. Concerned RM would get the matter reviewed before according approval for resumption of the activities. Other terms and conditions remain unchanged.

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A quarterly report on performance of SPU is to be submitted by the Sr Branch Manager and RSM (Projects) to the concerned RM who will take appropriate action with respect to short closing of the contract, if necessary.

16. Quality Complaints and its settlement:

a) SPU shall be responsible for all the losses/damages and deterioration caused to materials while these are in custody of SPU. The materials shall be deemed to be in the custody of the SPU as soon as the Railway Receipts/Consignment Advice/Stock Transfer Challans are handed over to SPU. Such loss/damage/deterioration and/or pilferage in the SPU's premises/custody will be compensated in full by the SPU.

Assessment of loss made by RINL on damage/deterioration to the materials in the custody of the SPU shall be binding on the SPU.

Though the responsibility lies with RINL for shortage/missing wagons, SPU shall co-ordinate with Railways for lodging the claim, follow up with Railways etc for settlement of claim

b) The SPU shall be informed about the QC in writing or over phone (later on to be confirmed in writing) by RINL. Any quality complaint received from the customers for converted products supplied by SPUs shall be inspected by RINL and their decision on the matter will be final and binding on the SPU.

c) Converted products returned under quality complaint shall be disposed by RINL and SPU will be responsible for paying to RINL the loss in realization on account of quality complaints.

d) In case of any rejection of finished products after 3rd party inspection, such materials will be

taken back by RINL for disposal. The loss in realization and transportation cost for taking back such materials shall have to be borne by the SPU.

e) SPU will have to settle the loss on account of QC /materials rejected by 3rd party inspection agency within seven days of the intimation by RINL of such loss. In case of failure, the same shall be recovered from the pending /forthcoming bills of the SPU.

17. Embossing:

a) All converted products produced from RINL billets only by SPU will be 100% embossed as per

RINL specification i.e.”RINCON TMT ” for TMT rebars and “ RINCONS” for structural products or as decided by RINL officials from time to time.

b) The SPU shall have to undertake 100% embossing of the converted materials as per design

and direction given by RINL. c) To have embossing of TMT for branding purposes the rolls will have to be cut as per RINL

design by machines like SPARKONIX by the SPU. 18. Reports & Returns: a) The SPU shall keep proper daily account of the converted or finished products viz. quality,

size, quantity, length of semis rolled, actual size,quality, quantity of converted /finished products, actual yield test results,inspection notes etc. and arrange for delivery of material against original delivery orders issued to our customers or their representative against proper letter of authorization, the copy of which are to be properly retained.

b) The SPU shall keep delivery order register indicating therein our delivery order(s) number and

date, names and addresses of our customers, size, quality and quantity of materials indicated on the delivery orders,as also the size, quality and quantity of the materials actually delivered to our allottee(s) against specific challan number and date.

b) The SPU shall, for every delivery to our customers, raise four copies of invoices meant for

following purposes:

- The original being marked as ORIGINAL FOR BUYER shall be handed over to the customer

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- The duplicate copy being marked as DUPLICATE FOR TRANSPORTER shall be handed over to the transporter of finished goods - The triplicate copy being marked as TRIPLICATE FOR ASSESSEE shall be retained by the

SPU.

- The fourth copy being marked as ‘NOT FOR CENVAT PURPOSES’ shall be sent to the concerned branch.

- Every invoice shall clearly indicate the amount of excise duty paid. - Every invoice shall invariably bear signature of SPU or his duly authorized representative (for which he will attest the signature) as also the signature of the authorized representative of our Customer. The details of the invoices shall be entered on the reverse side of the delivery order immediately on each delivery. d) The Tax Invoice (Not for CENVAT) shall also be generated by the SPU in three copies on the

stationery of RINL through the ERP connectivity provided to it by RINL. For this purpose the SPU shall be required to own suitable computers and also make arrangement for Internet connectivity for availing connectivity to RINLs ERP System . In the Tax Invoice Just below the word “TAXINVOICE”, the Words “NOT FOR CENVAT PURPOSES” shall be printed in

bold letters.

- The original copy of Tax Invoice being marked as “ORIGINAL -BUYER’S COPY” shall be handed over to the customer - The next copy being marked as “SELLER’S COPY” shall be sent to the concerned Branch.

- The extra copy being marked as “EXTRA COPY” shall be retained by the SPU.

e) The SPU shall, on completion of delivery against each delivery order, return executed delivery

order(s) along with a copy of the related invoice to the concerned branch. 19. Liabilities of the SPU: a) The SPU shall comply with all the statutory requirements towards fulfillment of all the

obligations under all the prevailing labour laws and other applicable laws. The SPU shall indemnify RINL against any claim that may be made on RINL arising out of any non-compliance of above statutory requirements by SPU.

b) SPU shall be responsible for any injury/damage caused by him or his agents to any man and

material at his premises as well as when materials are in transit. The SPU shall indemnify RINL against any claim that may be made on RINL arising out of any negligence or otherwise on the part of SPU and/or his agent.

c) SPU shall not assign any part of this contract to any other SPU/third party without prior

clearance and permission from RINL in writing to this effect. d) In case of inability on the part of SPU to perform to the full satisfaction of RINL under this

contract, RINL shall have the right to terminate the contract on serving due notice and appoint another SPU for the same job at the cost and risk of SPU .

e) The SPU (s) will be held responsible for damage caused to materials, inside the SPU-

Conversion premises by his/their staff, transport, equipment, etc., employed by him/them or any injury/death caused to the customer(s), visitor(s) and employee(s) in the SPU- Conversion premise as also to any other third parties. The claim(s) in this regard as assessed by the company shall be final and binding on the SPU and shall be paid by him/them or deducted from his/their dues/bills.

f) The provisions of above Clause (e) shall also apply to assessment of damage caused to

materials due to negligence of the SPU during the performance of various operations covered by the contract. The decision of the company as to the extent of damages and the amount recoverable from the SPU in this regard shall be final and binding upon the SPU . No materials will be allowed to be stacked / kept outside the premises or on the road within the yard or at places where it might impede the free movement of traffic.

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g) The company is not obliged to provide the SPU with any equipment for transporting, handling

and storage of different types of materials and the SPU should employ his / own / hired equipment and manual labour for the same.

h) In the event of the SPU 's failure or default to provide sufficient equipment and timely labour

at any time to do any of the jobs entrusted with him / them under the contract or in the event of the SPU ,unilaterally terminating the contract, the company shall have the right to get the work done through alternate arrangements, and all the charges and expenses incurred by the company in this behalf shall be recovered from the SPU either from his/their bill(s) or from any other amount(s) payable to the SPU , either under this contract or any other contract with the Company and /or by encashing the Bank guarantees furnished under this Contract.

i) The SPU shall be solely responsible for any injury/damage that may be caused to his

personnel and should provide full medical treatment to his staff and labour in case of accidents on duty. The company shall in no manner be liable to the SPU or any member of his staff or any other person for injuries or death caused as a result of accidents either within or outside the yard premises in the courses of work and / or arising out of work.

j) Whenever the contract expires / is terminated, the SPU shall be required to submit the

following documents failing which his final payment as well as release of EMD / Security Deposit, Bank Guarantee would be withheld till such time the requirement mentioned below are met by him in full:

- No demand Certificate from Railways in favour of RINL (to be obtained by the SPU). - No pending demands from statutory authorities like Labour Deptt.(in respect of PF, Gratuity, compensation to workmen etc.) and the like. - No dues certificate in favour of RINL.

In case the SPU fails to submit the above mentioned documents within a reasonable period, the Company would be within its right to forfeit / appropriate any amount of the SPU lying with the Company to his credit either under this contract or any other contract towards settlement of the claims of the above mentioned Agencies.

k) In the event of the SPU 's failure to execute the work under the contract to the satisfaction of

the company, the company shall put the SPU on notice calling upon him to execute/complete the work strictly in terms of the contract, within the time stipulated in the said notice and upon the SPU 's failure to comply with the same within the prescribed time, the company shall be entitled to terminate the contract, and/or offload the work or items of work so defaulted to

any other alternate agency at SPU 's risk and costs. The SPU shall immediately pay to the

company the differential, if any, in the costs and expenses so incurred by the company, within the time prescribed by the company failing which the company shall recover and appropriate from any amount payable to the SPU either under this contract or any other contract without any reference to the SPU and / or by encashing the guarantees furnished under this contract with the Company.

l) On termination of the contract for any reason whatsoever or completion of contract, the SPU

will have to handover all company's properties and documents including stocks produced out of RINL’s material and obtain a clearance certificate from RINL before the Security Deposit can

be claimed and / or Bank Guarantee custody cum Indemnity Bond returned /discharged. The refund of Security Deposit, Bank Guarantee and custody cum Indemnity Bond would be subject to his fulfilling the conditions indicated at clause above.

m) Any sum of money due and payable to the SPU including Security Deposit under the contract

may be adjusted and appropriated by the company and set off against any claims of the company for the payment of any sum of money arising out of this contract or any other contract.

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n) The SPU shall pay his labourers (male or female) not less than the minimum wages prescribed by the Minimum Wages Act, or such minimum wages as may be prescribed from time to time by the Central Government.

o) The SPU shall perform and observe all the provisions relating to the Employees Compensation

Act. Employee State Insurance Act (ESI) and all labour and other legislations. p) The SPU shall be liable for any injury or death arising out of any accident either within or

outside the SPU premises in the course of work. The SPU shall be responsible for such contingencies and will make good all claims for compensation claimed by his / their heirs/ workmen or others as adjudicated by the Tribunal / commissioner of Employees compensation and/or any other Authority as the case may be under the provisions of Employees Compensation Act and other relevant laws of the land. The SPU shall also indemnify the company and pay all such sums as may be awarded in respect of claims for compensation arising out of or in consequence of any accident of any staff or employee working under him / them as per the provisions of the employee's compensation Act or any subsequent modification or amendment to the said Aact thereof.

The SPU shall be responsible for effecting Insurance under the Indian Employee’s Compensation Act, Third Party liability Insurance, any other insurance in accordance with the Indian Laws and Regulations at his own cost, with the company as the Principal holder, the said policy should be valid during the period of contract and deposited with the company. The insurance should cover for all liabilities both for the staff and labour engaged by the SPU and also for any employee of RINL who visits the site or any third party. Further the SPU should insure its plant and machinery to cover all risks.

q) The SPU shall also carry out and observe the provisions of all other laws, Workmen

Compensation Insurance, Third party insurance and other applicable Acts and Statutes in respect of the said operations and also indemnify the company of any liability that may be imposed upon the company for non-observance of the SPU of any of the provisions of the various Laws/ Act /Statutes or for the SPU's failure in ensuring the compliance as aforesaid, and shall keep the company indemnified and reimburse and discharge all sums that may be claimed by appropriate authorities in any manner whether as penalty, fine, levy demands or compensation fee, arising out of or consequent upon the breach of the requirements and provisions of any statute(s), Law, Rules and Regulations by the SPU or their representative.

r) The SPU shall be liable for all complaints and / or claims made by and received from

company's customers due to any default or negligence on the part of the SPU or his representative or workmen.

s) The SPU shall provide the representative(s) of the company suitable office accommodation and

necessary secretarial assistance in the discharge of his duties. t) The SPU shall be further liable for all the losses that might be caused to RINL on account of

any of the breach of contract or misconduct as stated above. u) Proper security shall have to be made by the SPU (s) at their costs for the safe custody of

materials supplied by RINL. Any loss, damage or deterioration whatsoever and/or pilferage in premises/custody of SPU(s) shall be solely to the account of the SPU and they will be bound to compensate RINL suitably for such loss, damage and/or deterioration.

v) If it comes to the notice of VSP at any stage right from request for tender document that any

of the certificates/documents submitted by tenderer is found to be false /fake/doctored, they shall be debarred from participation in all VSP tenders for a period of 5 years including termination of contract, if awarded. EMD, Security Deposit, etc if any, shall be forfeited. The SPU in such cases shall make good to VSP any loss or damage resulting from such termination. Contracts in operation anywhere in VSP shall also be terminated with attendant fall outs like forfeiture of EMD, Security Deposit, if any, and recovery of risk and cost charges etc. Decision of VSP management shall be final and binding.

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w) Similarly, if any of the declarations given in the affidavit by the tenderer is found incorrect or not adhered to, then the tenderer shall be debarred from participation in all VSP tenders for a period of 5 years including termination of contract if awarded. EMD, Security Deposit etc if any shall be forfeited. The tenderer shall make good to VSP any loss or damage resulting from such termination. Contracts in operation any where in VSP shall also be terminated with attendant fall outs like forfeiture of EMD and Security Deposit if any, and recovery or risk and cost charges etc. Decision of VSP Management in this regard shall be final and binding.

x) Liquidated Damages:

Due to delay/failure in arranging the finished products by SPU, and if RINLs customers deduct

or levy liquidated damages on RINL, then RINL is entitled to recover the same from the bills

of SPU. 20. Banning of Business Dealings: a) RINL reserves its rights to ban business dealings if the SPU is found to have committed

misconduct and also to suspend business dealings pending investigations. Further, in case the SPU, his partner, member, servant, labour, agent, representative and/or any person working for and on behalf of the SPU is found involved in any unauthorized, or wrongful removal of materials not sold or makes any attempt for such removal using the mill capacity for their own production/marketing need of finished product, using RINL logo or reputation or brand name for marketing of their own product produced at other mills, this shall amount to breach of contract as well as misconduct caused by the party and Company shall be entitled to forfeit the Security Deposit and any other amount, money or material that may be lying with RINL at the risk and cost of the SPU in addition to suspension/ banning of the business dealings . No charge will be payable by RINL for the suspended business period.

c) The decision of the Director (Commercial),RINL or any other person delegated to exercise

powers in his absence from duty or due to his non-availability for any other reasons, what so ever will be final and binding on the SPU in all such cases.

c) Notwithstanding any thing contained in previous paragraphs, RINL shall reserve its right to

terminate/short-close the contract summarily, in case on enquiry it is found that the SPU has committed misconduct /malpractice in connection with present contract. In that event RINL shall reserve its rights to suspend business dealings in relation to other contracts also.

21. Responsibilities of SPU upon Completion/Termination of Contract:

On completion/termination of the contract for any reason whatsoever, the SPU shall have to hand over all properties and documents belonging to RINL. The unadjusted portion of Security Deposit shall be released by RINL to SPU subject to (i) their production of 'No Demand Certificate' from Railways in favour of RINL (in case of receipt of materials by Railway Wagons), (ii) adjustment of claims/dues by RINL from SPU for unsatisfactory

performance/lapses on the part of the SPU, if any, in this or any other contract and iii) No pending demands from statutory authorities like Income Tax, Labour Deptt. (in respect of PF, Gratuity, compensation to employees etc.) and the like.

This agreement may be terminated by RINL at any time at its sole discretion due to non-performance/ misutilization by giving 60 days notice in writing. The clauses for non-performance/ misutilization have been stipulated elsewhere in the contract. For termination for reasons other than above, there would be a notice period of 120 days on both side and termination can take place without payment of any compensation. Both the parties to this agreement shall have to settle their account within the notice period.

22. Losses / Damages:

a) The SPU shall be responsible for all losses/ damages /deterioration’s caused to the materials, when the materials are in SPU’s custody, including losses if any, caused during transportation and handling by the SPU. The materials shall be deemed to be in the SPU's custody as soon as the Railway receipts / Stock Transfer Challans are handed over to the SPU by the Company,

22

irrespective of the fact whether the materials are in transit or are actually received by the SPU.

b) The receipt of materials shall be accounted for by the SPU on the basis of the quantities

dispatched by the Company as per the Stock Transfer Challans issued by the Company. The

SPU shall be accountable to the Company for the entire quantity as mentioned in the Stock

Transfer Challans in case of rail, and weight of SPU weighbridge shall be final in case of receipt

by road and if any shortage, the RINL transporter shall be held responsible for such shortages,

STC quantity in case of SPU directly lifts from plant and no claims for shortages would be

entertained by the Company other than the yield loss of 5 % or 2% as the case may be. The

SPU is to accept the Company's practice of determination of weight for dispatch by the plant/

Stockyards as prevailing from time to time. No allowance shall be given on account of

weighbridge tolerance.

c) The SPU shall not hypothecate and / or charge and / or encumber in any manner whatsoever the materials despatched to / stored by them either in full or in part to any bank, a financial institution or association(s) or Company or firm as security or otherwise.

d) The SPU shall not suffer any injunction and / or attachment and / or appointment of Receiver

in respect of the Company's materials despatched to / stored by them.

e) No cognizance will be taken by the Company of the cases where Railways refuse to accede to the SPU's request for open delivery or delivery after reweighment or for issue of shortage certificate or for witnessing inspection, by independent surveyor. It will be SPU's responsibility to handle such cases.

f) SPU has to account for total weight charged as mentioned above. In case of the dispatch of raw materials by RAIL, any material shortage/missing wagons, RINL shall lodge a claim against Railways . However SPU shall cooperate with RINL to lodge a claim with the Railways and pursue the matter for settlement of claim with Railway Authorities , diligently and keep RINL informed from time to time. If required RINL shall give the SPU the authorization to lodge claims on behalf of RINL with the Railway Authorities.

23. Tenure & Termination of Contract:

Tenure:

The contract will be for a period of Five years from the date of commencement of the

operations as mentioned in the work order, extendable by Two years with mutual consent, at

the same terms and conditions of the contract subject to availability of billets from RINL and

satisfactory performance of SPU.

Termination of the Contract:

a) The objective of this contract is primarily to make additional margin through

conversion process under this agreement. In case such margin is either zero or

negative, the contract would be terminated without payment of any compensation.

b) The company shall have the option to terminate the contract at any time at its sole

discretion due to non-performance/ misutilization by giving 60 days notice in writing

and without payment of any compensation. The clauses for non-performance,

misutilization have been stipulated elsewhere in the contract. For termination for

reasons other than above, there would be a notice period of 120 days on both side and

termination can take place without payment of any compensation. Both the parties to

this agreement shall have to settle their issues/accounts within the notice period.

c) In the event of the SPU's failure to discharge their duties stipulated in the contract, to

the satisfaction of the company, the company may terminate the contract summarily

and without notice.

23

d) In the event of the contract being terminated in exercise of the rights under the

clauses mentioned above, the SPU shall not be entitled to claim any special or general

damages from the company on account thereof.

e) RINL will have an option to terminate the contract with 30 days notice period in case

average net margin for a continuous period of 6 months happens to be negative. The

period of six months will be calculated beginning with the first day of the calendar

month following the date of commencement of operations as mentioned in the work

order.

24. Alternative arrangement

a) If at any time during the continuance of this Contract, the company is of the opinion that in the best interest of its business, it is necessary to take possession of the materials from the SPUs custody, the company may forthwith issue notice to the SPU and take possession of the materials by physically removing the materials to such places as the company may decide in this regard.

b) The SPU however will be entitled to claim the charges as due to him under the provisions of the contract upto the point of final removal of the material from his

premises. The SPU shall extend all cooperation as may be required by the company

in exercise of its right to secure its materials.

c) The company may also, if necessary, and if the exigencies of situations so warrant make its own security arrangement over the materials in addition to the arrangement of the SPU. This however, will not absolve the SPU from his duties and responsibilities under the contract.

25. Liabilities / Obligations on Expiry / Terminations:

Notwithstanding the expiry / termination of the contract the liabilities and obligation of both company and the SPU as set out herein will continue to be in force, until all the materials supplied / despatched by the company to the SPU upto the date of the said expiry /termination are delivered by the SPU. After termination /expiry of the contract, the materials if any, lying in the SPU's yard shall be lifted by the company within two months from the date of the termination of the contract and the SPU shall be responsible to arrange delivery of the materials as directed by the company for which the SPU shall be entitled to claim remuneration as is due to him under the provisions of the contract.

Positive margin will be calculated on a six monthly basis. In case of negative margin RINL May have to exercise the option of termination with 30 days notice without payment of any compensation and without assigning any reason. 26. Resolution of Disputes: 26.1 In the event of any dispute/difference whatsoever arising between the parties relating to or

arising out of the contract; the parties shall endeavour to resolve such dispute through conciliation as per provisions of the Arbitration and Conciliation Act 1996.

26.2.1. Conciliation: Any dispute or difference whatsoever arising between the parties relating to

or arising out of Contract, shall be settled first by conciliation in accordance with the provision of the Arbitration and Conciliation Act – 1996 and the Settlement so rendered between the parties in pursuance thereof shall be final and binding on the parties.

26.2.2. In case conciliation fails, all questions, claims, disputes or differences of any kind

whatsoever arising between the parties relating to or arising out of the contract shall be referred by the parties hereto for the decision by a Sole Arbitrator to be appointed as hereinafter mentioned.

24

26.2.3. The notice regarding the invoking of the arbitrator clause shall be served by registered post and addressed to the, Director (Comml) Rashtriya Ispat Nigam Limited,

26.3.1 Matters in question, disputed claim or differences other than the excepted matters shall be

referred for decision to a Sole Arbitrator to be appointed by Chairman-cum-Managing Director.

26.3.2 In this clause, the expression means the Chairman-cum-Managing Director or any other

person delegated to exercise the authority and the power of the CMD due to his absence on duty or due to his non-availability for any reason whatsoever.

The Arbitrator, so appointed, shall adjudicate upon all the disputes between the parties

hereto. 26.3.3 The Arbitrator shall hear the cases independently and impartially and shall not represent

the interest of any party. 26.3.4 The question of procedure for conduct of the arbitration proceedings shall be decided by

the Arbitrator in consultation with the parties before proceeding with the reference. The Arbitrator may hold preparatory meeting (s) for this purpose.

In the preparatory meeting(s) as aforesaid, the Arbitrator in consultation with the parties shall also determine the manner of taking evidence the summoning of the expert evidence and all such matters for the expeditious disposal of the arbitration proceedings.

26.4 Excepted matters as per the contract shall not be the subject matter of

Conciliation/Arbitration.

26.5 The Court/s at Visakhapatnam only shall have jurisdiction over all matters of dispute.

26.6 The venue of the Arbitration shall be, the place of Branch Sales Office where the

agreement is signed with the Steel Processing Unit. 26.7 Work/supply under the contract shall be continued by the SPU under the contract pending

Conciliation/Arbitration proceedings and recourse to Conciliation/ Arbitration shall not be bar to continue with the work/supply.

26.8 The provisions of the Arbitration and Conciliation Act, 1996 and rules framed there under, if

any, and all modifications/amendments thereto shall deem to apply and/or to be incorporated in this contract as and when such modifications / amendments to the Act/Rules are carried out.

27. General:

a) Proper security shall have to be made by SPU at their costs for the safe custody of materials supplied by RINL. Any loss, damage or deterioration whatsoever and/or pilferage in premises /custody of SPU shall be solely to the account of SPU who will be bound to compensate RINL

suitably for such loss, damage and/or deterioration.

b) RINL may post their employee(s) at the premises of SPU who would, over-see the conversion activities.

c) At the end of contract period the rolls are to be disfigured in front of RINL executive to erase impression of embossing and refund / return of Security deposit and BG/ Custody & indemnity bond shall be dependent on RINL satisfying itself about such defacement.

d) SPU shall not receive or accept any payment from customers of RINL. No employee of the Company shall handle a case of contract with any of his relations or a firm of which the relation is a partner or a company of which the relation is a Director unless specifically approved by his higher authority on proper disclosure of the fact or relationship.

***

25

ANNEXURE – 3

(TO BE ISSUED BY THE BANK ON THEIR LETTER HEAD)

To,

The Sr Branch Manager

Rashtriya Ispat Nigam Limited

117/LI 452 Near Double Pulia

Navin nagar,

Kanpur 208 205

Dear Sir,

Sub: Financial standing of M/s _____________________

This is to certify that M/s ____________________________ (Name of the tenderer), a

_____________ (Proprietorship Firm / Partnership Firm / Company) with Sri / Smt

__________________________ as _____________ (Proprietor / Partners / Directors) having their

Registered / Head Office at ______________________ have been banking with us since

__________________. The operation of their _______________ (nature of account) No.________

with us is satisfactory. The financial standing of M/s ___________________ is sound based on the

transactions dealt with us. This is also to certify that M/s ___________ is solvent worth Rs.

______ (value of BG /security deposit specified against this work)

Date: ( )

Place: Authorized Signatory

Name:

Seal: Designation:

26

ANNEXURE –4

(TO BE ISSUED BY PRACTICING CHARTERED ACCOUNTANT ON HIS LETTER HEAD)

To,

The Sr Branch Manager

Rashtriya Ispat Nigam Limited

Chhanni House, 1st

floor

117/LI 452 Near Double Pulia

Navin nagar,

Kanpur 208 205 Dear sir, Sub: Experience Certificate for participation in tender issued by RINL/VSP. 1. This is to certify that M/s________________________________

(Name and address of the Agency) have the experience in manufacturing Iron and Steel Hot Rolled Long Products. Further, this is to certify that M/s have manufactured the following tonnages during the period from _______ to _________. Financial Year Products Tonnage manufactured in the year (MT) 2009-2010 Hot Rolled Long 2010-2011 Products 2011-2012

2 The above has been certified based on verification of records maintained by M/s

__________________________ Date: ( ) Place: Signatory

Name:

Seal:

27

ANNEXURE –5

PROFORMA FOR SCHEDULE OF SPU - CONVERSION CHARGES

RAW MATERIAL: M S GRADE IS: 2830 CAST BILLET (150X150mm & 200X200 mm)

Details of Finished products

to be produced

Consolidated

Indicative

Quantity(all

sizes put

together)

SPU- Conversion

Charges

Contract value

Materials

(1)

Size( MM)

(2)

(In MT)

(3)

Consolidated single

rate for TMT Rebars

in Rs/MT

(4)

Multiplication of

indicative quantity

and SPU conv

charges quoted in

Rs

(3) x (4)

TMT

Rebars Fe

500/Fe

500 D

6,8,10,12,16,20,25,

28,32

6000

Note:

(*)(to be indicated by respective BSO)

1) Rates to be quoted both in figure and words. In case of any discrepancy between rate quoted in

figures and words, the rate quoted in words will prevail.

2) Indicative percentage breakup of TMT Rebars shall be as below:

6mm/8mm --- 25%, 10mm -- 20%, 12mm -- 15%

16 mm --- 20%, 20mm/25mm/28mm/32mm – 20%

28

ANNEXURE – 6

PROFORMA FOR SCHEDULE OF SPU - CONVERSION CHARGES

RAW MATERIAL: M S GRADE IS: 2830 CAST BILLETS (150/200mm )

Details of Finished products

to be produced

Indicative

Quantity(*)(In

MT)

SPU- Conversion

Charges

Rs/MT

Contract value

Materials

(1)

Size( MM)

(2)

(3) (4) Multiplication of

indicative quantity

and SPU conv

chages in Rs

(3) X (4)

Equal

Angles

1500

Un Equal

Angles

500

Channels

2000

Joists

2000

Total Value in Rs =

1) Sizes to be mentioned by SPU as per his rolling capacity.

2) SPU Conversion charges in Rs/MT, Contract value in Rs to be quoted both in figure and words. In case

of any discrepancy between rate quoted in figures and words, the rate quoted in words will prevail.

29

ANNEXURE – 7

Sl no Rs

Contract value of TMT Rebars (with Input materials as Cast

Billets 150 & 200mm)

Contract value of Structurals (with Input materials as Cast

Billets 150X150 & 200X200mm)

Total contract value

The tenderer has to arrive at the total contract value by adding the value of all individual items (TMT

Rebars and Structurals) and quote the same in the schedule of rates. In case of any error between

total contract value quoted in schedule of rates and sum of individual value of each item of schedule of

rates, the lower of either total contract value quoted in the schedule of rates or sum of individual

value of each item of schedule of rates would be considered .In case total contract value quoted is

lower, the difference would be adjusted proportionately on each individual item of schedule of rates

for arriving at the individual item rate.

In case of any error in arriving at the value of individual items, while multiplying the individual item

rates with respective indicative quantities, the rate/amount that is advantageous to the Company shall

be considered.

30

ANNEXURE - 8

SECURITY DEPOSIT BANK GUARANTEE TOWARDS PERFORMANCE GUARANTEE (FROM ANY SCHEDULED BANK EXCEPT GRAMIN / COOPERATIVE BANKS

RASHTRIYA ISPAT NIGAM LIMITED 1. In consideration of the Rashtriya Ispat Nigam Limited, Govt. Company incorporated under the

Companies Act, 1956 and having its registered office at Administrative building, Visakhapatnam Steel Plant, Visakhapatnam 530 032 and also having inter-alia one of its Branch Sales Offices at Chhanni House, 1st Floor, 117/LI 452, Near Double Pulia, Navinnagar Kanpur – 208025 hereinafter called the 'Company') having agreed to accept this Guarantee towards the Security (and as Security Deposit) for the due performance of all the obligation contained in the Contract dated (hereinafter called the "said Contract", which expression shall include any formal agreement entered into subsequent thereto or in supercession thereof and all modification to and amendments in the said agreement) made between the Company and M/s. ………(hereinafter called the ‘Contractor’ or ‘SPU’) for SPU conversion situated at …………………. under the said Contract, we…………..(Name of the Bank) (hereinafter referred to as the 'said Bank') do hereby undertake to pay the Company an amount not exceeding Rs lakhs (Rupees lakhs only) against the Contractor's failure and/or non observance and/or breach(s) of any of its obligations and/or the terms and conditions contained in the contract dated ……….

2. We ……….. (Name of the Bank) do hereby undertake to pay at cash counter the amount (s) due

and payable under this Guarantee to the extent of Rs. Lakhs (Rupees lakhs) only without any demur or protest, merely on receipt of a demand from the Company stating that the said Contractor has failed to fulfill and / or observe and/or committed breach (es) of the obligations as stipulated in the Contract dated ……..and the amount claimed is due and payable to the Company by the said Contractor on account thereof. Any such demand made on the said Bank shall be conclusive as regards the amount due and payable by the Bank under this Guarantee. It is hereby expressly agreed and affirmed that the Company shall have the fullest liberty to claim payment of the amount under this Guarantee subject to the ceiling limit of Rs lakhs (Rupees lakhs only) as referred to above and this Guarantee shall not become infructuous or invalid because of the partial payment or payments made by us to the Company pursuant to the demand or demands made by the Company upon us for payment from time to time. It is further affirmed that this Guarantee shall hold good in favour of the Company to the extent of the balance amount covered under this Guarantee. It is also agreed and affirmed that the Company shall be the sole judge as to whether the said Contractor has failed to observe / fulfill / any or all the obligations contained in the Contract dt ……… referred to above, and/or committed any breach or breaches in respect thereof as also the amount become due and payable by the Contractor/SPU on account therefore, and such decision of the Company shall be final and binding upon us.

However, our liability under this Guarantee shall be restricted to an amount not exceeding Rs lakhs (Rupees lakhs only).

3. We the said Bank, further agree that this Guarantee shall remain in full force and effect until the

said Contractor fulfills all the obligations under the contract dated ……… in due performance thereof and that it shall continue to be enforceable for the period that would be taken for satisfactory performance and fulfillments in all respects of all obligations under the Contract dated…… and that it shall continue to be enforceable till any notice of no claim is given by the Company.

4. We, the said Bank, further agree that the Company has the fullest liberty without affecting in any

manner our obligations herein to vary any of the terms and conditions of the said Contract dated …… and to forebear or enforce any of the terms and conditions relating to the said Contract and we shall not be relieved of our liability under this Guarantee by reason of any such variation or extension being granted to the said Contractor or for any forbearance and/or commission on the part of the Company.

31

5. We …….(name of the Bank) state and affirm that this Guarantee will be valid and effective for a period of 3 years from the date of issue and we further agree that the guarantee herein contained shall not be affected by any change in the Constitution of the said Contractor.

6. We (mention the name of the Bank), hereby agree that any claim due and arising under this

guarantee shall be enforceable against our Bank’s Branch --- (mention the name and address

of the Branch ) at ----------------(VSP’s controlling Branch city) and they shall honour such

demand in any case not later than next working day.

7. Issuance of this Bank Guarantee may also be got confirmed from our controlling branch/

office/higher Authority as per the name & address mentioned below:

________________________

________________________

Yours faithfully, Designated Officer of Bank with Seal Dated : ……………………………..day of……………….(month) ……………..(year) for_______________________________ (Name of the Bank) with seal

32

ANNEXURE –9

PROFORMA OF BANK GUARANTEE (Financial Coverage ) FOR SPU CONTRACT (On non judicial stamp paper of appropriate value from a Scheduled Bank)

(to be vetted by Finance of Branch Sales Office) To

The Sr Branch Manager

Rashtriya Ispat Nigam Limited

Chhanni House, 1st

Floor

117/LI 452 Near Double Pulia

Navin nagar,

Kanpur 208 205 1. In consideration of Rashtriya Ispat Nigam Limited, a government Company incorporated under the

Companies Act, 1956 having its registered Office at Administrative Building, Visakhapatnam Steel Plant, Visakhapatnam 530 031also having interalia, one of its Branch Sales office at above address.(hereinafter called `the Company’) having agreed to accept this Guarantee for due security and safe custody of the materials dispatched to M/s. __________________ (hereinafter called ‘the said Steel Processing Unit (SPU) for Conversion of Semis supplied by RINL under the Agreement dated _____________ (hereinafter called ‘the said Agreement’ which expression shall include any formal agreement entered into subsequent thereto or in suppression thereof and all modifications to and amendments in the said Agreement) made between the Company and the said SPU for conversion of the Steel materials covered under the said Agreement on furnishing a Bank Guarantee for Rs…………… (Rupees …………………………….) only, we________________ (Name of the Bank) … (hereinafter referred to as ‘the Bank’) do hereby undertake to pay to the Company an amount not exceeding Rs……………………………… (Rupees…………………………….) only against any shortage, loss or damage or deterioration caused to or suffered by or would be caused to or suffered by the company in respect of the said materials by reason of any breach(es) of any of the terms and conditions contained in the said Agreement, or for any reason whatsoever.

2. We ………………………………………. do hereby undertake to pay (name of the Bank) the amount or

amounts due and payable under this Guarantee from time to time up to the extent of Rs……………. (Rupees……………………………………………) only without any demur / protest / question, merely on receipt of a demand from the Company stating that the amount (s) claimed is / are by way of loss or damage caused to / suffered by or would be caused to or suffered by the Company in respect of the said materials by reason of any breach of any of the terms and conditions contained in the said agreement by reason of the SPU’s failure to perform the said agreement or for any reason whatsoever. Any such demand made on the Bank shall be conclusive as regards the amount or amounts due and payable by the Bank after this Bank Guarantee.

3 It is hereby expressly agreed and declared that the Company shall have the fullest liberty to claim payment of the amount or amounts from time to time under this Guarantee subject to the ceiling limit of Rs. ……………………….. (Rupees……………………………) only, as referred to above and this guarantee shall not become invalid or in fructuous because of the partial demand(s) made by the company upon us for payment under the circumstances stipulated hereinabove and it is further declared that this Guarantee shall hold good in favour of the Company to the extent of the balance amount covered under this guarantee. It is further agreed and declared that the Company shall be the sole judge of and as to whether the said SPU has committed any breach or breaches of any of the terms and conditions of the said agreement the extent of loss and damage, caused to or suffered by or that may be caused to or suffered by the Company on account thereof and the decision of the Company that the said SPU has committed such breach or breaches and as to the amount or amounts of loss and damages shall be final and binding on us. Any such demand or demands made on the Bank shall be conclusive as regards the amount due and payable by the Bank under this Guarantee. However, our liability under this guarantee shall be restricted to an amount, not exceeding Rs. ………………….. (Rupees……………………. …………………….) only.

33

4 We, the said Bank, further agree that the Guarantee herein contained shall remain in full force

and effect during the period that would be taken for the performance of the said agreement and that it shall continue to be enforceable till all the dues of the Company under or by virtue of the said agreement have been fully paid and its claims satisfied or discharged or till the Company certifies

5 that the terms and conditions of the said agreement have been fully and properly carried out by the said SPU and accordingly discharges this guarantee. Unless a demand or claim under this guarantee is made on us in writing on or before the …………………. (i.e. six months after the date of expiry of the said Agreement) and payment is made by us, we shall be discharged from our liability under this guarantee thereafter.

6. We, the said Bank, further agree that the Company shall have the fullest liberty, without our

consent and without affecting any manner our obligations hereunder contained to vary / modify any of the terms and conditions of the said agreement or to extend time of performance from time to time or to postpone for any time or from time to time any of the powers exercisable by the Company against the said SPU and to forbear or enforce any of the terms and conditions relating to the said agreement and we shall not be relieved of our liability by reason of any such variation / modification or extension being granted to the said SPU or for any forbearance, act or omission on the part of the Company or any indulgence by the Company to the said SPU or by any such matter or thing whatsoever which under the law relating to sureties would but for this provision have effect of so relieving us.

7. We …………… (name of the Bank) agree and declare that this Guarantee will be valid and

effective for a period of 6 years from the date of its issue and we further agree that the Guarantee herein contained shall not be affected by any change in the constitution of the said SPU .

8. We, the said Bank, lastly undertake not to revoke this Guarantee during its currency except

without the previous consent of the Company in writing.

9. We (mention the name of the Bank), hereby agree that any claim due and arising under this

guarantee shall be enforceable against our Bank’s Branch --- (mention the name and address

of the Branch ) at ----------------(VSP’s controlling Branch city) and they shall honour such

demand in any case not later than next working day.

10. Issuance of this Bank Guarantee may also be got confirmed from our controlling branch/

office/higher Authority as per the name & address mentioned below:

________________________ ________________________ Yours faithfully, Designated Officer of Bank with Seal Dated : ……………………………..day of……………….(month) ……………..(year) for_______________________________ (Name of the Bank) with seal

34

ANNEXURE – 10

PROFORMA FOR CUSTODY AND INDEMNITY BOND FOR SPU CONVERSION CONTRACT

(To be executed on Stamp Paper of appropriate value) To

The Sr Branch Manager

Rashtriya Ispat Nigam Limited

Chhanni House, 1st

Floor

117/LI 452 Near Double Pulia

Navin nagar,

Kanpur 208 205 WHEREAS We have agreed to act as your Steel Processing Unit at ----------- for conversion of Steel to be handed over to us at railway siding/your Rolling Mill / Stockyards for proper transportation, storage, handling, offering 72000 T of capacity of the mill exclusively for RINL, safe custody and delivery to your various customers against valid delivery orders issued by your BSO at above address pursuant to the Agreement dated …………………….(hereinafter referred to as the said Agreement') AND WHEREAS we have agreed to execute a Custody and Indemnity Bond in terms of the said Agreement for and in respect of the Steel materials delivered to us, we hereby declare and state as under: 1. NOW by this Custody and Indemnity Bond we hereby agree and undertake that we shall keep and

hold the Steel materials meant for conversion as well as converted steel materials under the said agreement and keep the same under safe custody at our premises located at………… on your behalf and as your property in trust for you.

2 We shall be entirely responsible for the safe custody and protection of the said Steel materials at

our risk till the same are duly delivered to your various customers OR as may be directed by you from time to time or at any time and shall indemnify you against any loss, damage or deterioration suffered by you or against shortages whatsoever in respect of said Steel materials delivered to us from time to time under said Agreement while the same remain in our custody.

We further agree that the said Steel materials shall at all time be open to inspection by any person authorized by you.

3. SHOULD any loss or damage or deterioration or shortage occur or refund becomes due and

receivable by you, on demand we undertake to compensate or to pay or to refund the amount forthwith and without any deduction whatsoever. You shall be entitled to recover from us compensation for such loss or damage or deterioration or shortage without prejudice to any other remedies available to you by deduction from any sum which at any time hereinafter may become due to us either under aforesaid Agreement or under any other Agreement (s). The amount so claimed by you shall be final and binding upon us.

4. WE further agree and affirm that you shall have the fullest liberty to vary any of the terms and

conditions of the said Agreement without affecting in any manner whatsoever our obligation under this Bond and we shall not be released from our liabilities under this Bond by the exercise of your liberty to vary and / or modify the terms of the said Agreement or by reason of any time being given to us or any other forbearance or indulgence given to us or any other act or omission on your part.

5. We further agree and undertake that we shall not hypothecate and / or change and / or encumber

in any manner whatsoever the materials, despatched to us, either in full or in part to any Bank or Financial Institution or any Association or any company or firm as a security or otherwise.

6. WE further agree and undertake that we shall not suffer any injunction and/or attachment and/or

appointment of Receiver in respect of materials either in full or in part, delivered to us.

35

7. AND we further agree that this Bond shall remain in force till all the obligations under the said Agreement are fulfilled and the accounts relating thereto are finally settled by and between

ourselves and yourselves and unless you expressly discharge this Bond in writing the same shall

remain valid and in full force.

8. THIS Bond with all its provisions herein contained are in addition to and not by way of limitation of

or substitution for any other Bond or Indemnity / Undertaking here before given to you by us, whether jointly with others or alone and now existing un cancelled and that this Bond is not intended to nor shall revoke or limit such Bond or guarantee / undertaking.

9. THIS Bond shall not be affected to any change in our constitution not shall it be affected by any

change in your constitution or by any amalgamation or absorption thereof or therewith but will ensure for and be available to and enforceable by the absorbing or amalgamated company or concern IN Witness whereof we put our seal and signature on this ………… ………..

(day)………………(month)……………………………….(year) Signed sealed and delivered

By M/s………………………………………

For and on behalf of

………………………………………..

………………………………………..

In the presence of:

1)

2)

36

Annexure-11 INTEGRITY PACT FORMAT

Rashtriya Ispat Nigam Limited (RINL) hereinafter referred to as “The Principal”,

And

…………………………………………………………………………………. hereinafter referred to as

“The Bidder/Contractor”

Preamble

The Principal intends to award, under laid down organizational procedures, Appointment of Steel

Processing Units(SPU) for conversion of Surplus semis in to finished products on wet lease basis

aginst NIT Ref NO. VSP/MKTG/PS/ Dated _ /_ /2012. The Principal values full compliance with all

relevant laws of the land, rules, regulations, economic use of resources, and of fairness/transparency in its

relations with its Bidder(s) and /or Contractor(s).

The Principal will nominate an Independent External Monitor(s) (IEM(s)) by name at the tender

stage/will appoint in case of receipt of any reference, from the panel of IEMs, for monitoring the tender

process and the execution of the contract in order to ensure compliance with the Integrity Pact by all the

parties concerned.

Section 1 – Commitments of the Principal:

(1) The Principal commits itself to take all measures necessary to prevent corruption and to observe the

following principles:-

(a) No employee of the Principal, personally or through family members, will in connection with

the tender for, or the execution of a contract, demand, take a promise for or accept, for self or

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

to.

(b) The Principal will, during the tender process treat all bidders with equity and reason. The

Principal will in particular, before and during the tender process, provide to all Bidders the

same information and will not provide to any Bidder confidential/additional information

through which the Bidder(s) could obtain an advantage in relation to the tender process or the

contract execution.

(c) The Principal will exclude from the process all known prejudiced persons.

(2) If the Principal obtains information on the conduct of any of its employees which is a criminal

offence under the IPC/ PC Act, or if there be a substantive suspicion in this regard, the Principal

will inform Chief Vigilance Officer of RINL and in addition can initiate disciplinary action.

37

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

(1) The Bidder(s)/ Contractor(s) commits to take all measures necessary to prevent corruption.

He commits to observe the following principles during his participation in the tender process

and during the contract execution.

(a) The Bidder(s)/Contractor(s) will not, directly or through any other person or firm, offer,

promise or give to any of the Principal’s employees involved in the tender process or the

execution of the contract or to any third person any material or other benefit which he/she is

not legally entitled to, in order to obtain in exchange any advantage of any kind whatsoever

during the tender process or during the execution of the contract or to vitiate the Principal’s

tender process or contract execution.

(b) The Bidder(s)/ Contractor(s) will not enter with other Bidders into any undisclosed agreement

or understanding, whether formal or informal. This applies in particular to prices,

specifications, certifications, subsidiary contracts, submission or non-submission of bids or

any other actions to restrict competitiveness or to introduce cartelization in the bidding

process or to vitiate the Principal’s tender process or execution of the contract.

(c) The Bidder(s)/Contractor(s) will not commit any offence under the IPC/ PC Act; further the

Bidder(s)/Contractor(s) will not use improperly, for purposes of competition or personal gain,

or pass on to others, any information or document provided by the Principal as part of the

business relationship regarding plans, technical proposals and business details including

information contained or transmitted electronically.

(d) The Bidder(s)/Contractor(s) of foreign origin shall disclose the name and address of the

Agent(s)/representative(s) in India, if any. Similarly the Bidder(s)/Contractor(s) of Indian

Nationality shall furnish the name and address of the foreign supplier/contract Agency, if any.

Further details, as mentioned in the Guidelines on Indian Agents of Foreign

“Suppliers/contract agencies”, shall be disclosed by the Bidder(s)/Contractor(s) wherever

applicable. Further, as mentioned in the Guidelines, all the payments made to the Indian

agent(s)/representative(s) have to be in Indian Rupees only.

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

enclosed.

(e) The Bidder(s)/ Contractor(s) will, when presenting his bid, disclose any and all payments he

has made or committed to or intends to make to agents, brokers or any other intermediaries in

connection with the award of the contract.

(2) The Bidder(s)/Contractor(s) will not instigate third persons to commit offences outlined above or

be an accessory to such offences.

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

38

(1) A transgression is considered to have occurred, if the principal after due consideration of the

available evidence, concludes that a reasonable doubt is possible.

(2) If the Bidder(s)/Contractor(s), before award of contract or after award of contract has committed a

transgression through a violation of Section 2 above or in any other form such as to put his

reliability or credibility in question, the Principal is entitled to disqualify the Bidder(s) from the

tender process or to terminate the contract, if already awarded, for that reason, without prejudice to

other remedies available to the Principal under the relevant GCC of the tender/contract.

(3) If the bidder/Contractor has committed a transgression through a violation of any of the terms under

Section 2 above or in any other form such as to put his reliability or credibility into question, the

Principal is entitled also to exclude the bidder / Contractor from future tenders/Contract award

processes. The imposition and duration of the exclusion will be determined by the principal keeping

in view the severity of the transgression. The severity will be determined by the circumstances of

the case, in particular the number of transgressions, the position of the transgressors within the

company hierarchy of the bidder /Contractor and the amount of the damage.

(4) If it is observed after payment of final bill but before the expiry of validity of Integrity pact that the

contractor has committed a transgression through a violation of any of the terms under Section 2

above during the execution of contract, the Principal is entitled to exclude the Contractor from

future tenders/Contract award processes.

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

three (3) years.

(6) If the bidder / Contractor can prove that he has restored/ recouped the damage to the principal

caused by him and has installed a suitable corruption prevention system, the Principal may revoke

the exclusion before the expiry of the period of such exclusion.

Section 4 – Compensation for Damages:

(1) If the Principal has disqualified the bidder from the tender process prior to the award in accordance

with Section 3 above, the Earnest Money Deposit (EMD)/Bid security furnished, if any, along with

the offer as per the terms of the Invitation to Tender (ITT) shall be forfeited. This is apart from the

disqualification of the Bidder as may be imposed by the Principal as brought out at Section 3 above.

(2) If the Principal has terminated the Contract in accordance with Section 3 above, or if the Principal

is entitled to terminate the Contract in accordance with Section 3 above, the Security

Deposit/performance bank guarantee furnished by the contractor, if any, as per the terms of the

ITT/Contract shall be forfeited without prejudicing the rights and remedies available to the

principal under the relevant General conditions of contract. This is apart from the disqualification

of the Bidder, as may be imposed by the Principal, as brought out at Section 3 above.

Section 5 – Previous transgressions:

(1) The Bidder declares that, to the best of his knowledge, no previous transgression occurred in the

last five (05) years with any Company or Organization or Institution in any country or with any

Government in any country conforming to the anti-corruption approach that could justify his

exclusion from the tender process.

39

(2) If the Bidder makes incorrect statement on this subject, he can be disqualified from the tender

process. The contract, if already awarded, can be terminated for such reason.

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

(1) The Bidder(s)/Contractor(s) undertakes to demand from all his subcontractors a commitment in

conformity with this Integrity Pact, and to submit it to the Principal before seeking permission for

such subcontracting.

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

Contractors.

(3) The Principal will disqualify from the tender process all bidders who do not sign this Pact or violate

its provisions.

Section 7 – Criminal charges against violating Bidder(s) /Contractor(s)/ subcontractor(s):

If the Principal obtains knowledge of conduct of a Bidder, Contractor, Subcontractor or of any

employee or a representative or an associate of a Bidder/Contractor/ Subcontractor which

constitutes corruption, or if the Principal has substantive suspicion in this regard, the Principal

will inform the same to CVO of RINL.

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

(1) The Principal appoints competent and credible Independent External Monitor(s) with clearance

from Central Vigilance Commission & Transparency International (India). The IEM(s) reviews

independently, the cases referred to him/them to assess whether and to what extent the parties

concerned comply with the obligations under this Integrity Pact.

(2) In case of noncompliance of the provisions of the Integrity pact, the complaint/noncompliance is to

be lodged by the aggrieved party with the Nodal Officer only appointed by CMD/RINL. The Nodal

Officer shall refer the complaint / non compliance so received by him to the IEM, already appointed

or to be appointed for that case.

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

independently. The IEM(s) will submit report to the CMD, RINL.

(4) The Bidder(s)/Contractors(s) accepts that the IEM has the right to access without restriction, to all

tender/contract documentation of the Principal including that provided by the Bidder/Contractor.

The Bidder/Contractor will also grant the IEM upon his request and demonstration of a valid

interest, unrestricted and unconditional access to his tender/contract documentation. The same is

applicable to Subcontractors also. The IEM is under contractual obligation to treat the information

and documents of the Bidder(s)/ Contractor(s)/Subcontractor(s) with confidentiality.

(5) The Principal will provide to the IEM sufficient information about all meetings among the parties

related to the tender/contract for the cases referred to IEM, provided such meetings could have an

impact on the contractual relations between the Principal and the Contractor. The parties offer to

the IEM the option to participate in such meetings.

(6) As soon as the IEM notices, or believes to notice, a violation of this pact, he will so inform the

Principal and request the Principal to discontinue or take corrective action or to take other relevant

action. The IEM can in this regard submit non binding recommendations. Beyond this, the IEM

has no right to demand from the parties that they act in a specific manner, refrain from action or

tolerate action.

40

(7) The IEM will submit a written report to the CMD, RINL within four (04) to six (06) weeks from

the date of reference or intimation to him by the Principal and, should the occasion arise, submit

proposals for corrective actions for the violations or the breaches of the provisions of the agreement

noticed by the IEM.

(8) IEM may also submit a report directly to the CVO of RINL and the Central Vigilance Commission,

in case of suspicion of serious irregularities attracting provisions of the IPC/ PC Act.

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

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

plural.

Section 9 – Duration of the Integrity Pact:

(1) This Pact comes into force upon signing by both the Principal and the Bidder/Contractor. It expires

for the Contractor twelve (12) months after the last payment under the contract, and for all

unsuccessful Bidders, six (06) months after the contract has been awarded and accordingly for the

Principal after the expiry of respective periods stated above.

(2) If any claim is made/ lodged during the valid period of the IP, the same shall be binding and

continue to be valid even after the lapse of this pact as specified above, unless it is

discharged/determined by CMD of RINL.

Section 10 – Other provisions:

(1) This agreement is subject to Indian Law. Place of performance and jurisdiction is the Registered

Office of the principal, i.e. Visakhapatnam, State of Andhra Pradesh, India.

(2) Changes and supplements as well as termination notices need to be made in writing. Side

agreements to this pact have not been made.

(3) If the Contractor is a partnership firm/ consortium, this agreement must be signed by all partners/

consortium members, or their Authorized Representative(s) by duly furnishing Authorization to

sign Integrity Pact.

(4) Should one or several provisions of this agreement turnout to be invalid, the remaining part of this

agreement remains valid. In this case, the parties will strive to come to an agreement to their

original intentions.

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

case may be.

_____________________________ _____________________________________

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

(Office Seal) (Office Seal)

Place ---------------

Date ---------------

Witness 1: Witness 2:

(Name & Address) Name & Address)

41

GUIDELINES FOR INDIAN AGENTS OF

FOREIGN “SUPPLIERS/CONTRACT AGENCIES”

1.0 There shall be compulsory registration of Indian Agents of foreign suppliers/contract

Agencies with RINL in respect of all Global (Open) Tenders and Limited Tenders. An agent

who is not registered with RINL shall apply for registration in the prescribed Application

Form.

1.1 Registered agent needs to submit before the placement of order by RINL, an Original

certificate issued by his foreign supplier/ contract Agency (or an authenticated Photostat copy

of the above certificate duly attested by a Notary Public) confirming the agency agreement

and giving the status being enjoyed by the agent along with the details of the commission

/remuneration /salary /retainer being paid by them to the agent(s).

1.2 Wherever the Indian representative has communicated on behalf of their foreign

supplier/contract Agency and/or the foreign supplier/contract Agency have stated that they

are not paying any commission to their Indian agent(s) but paying salary or retainer, a written

declaration to this effect given by the foreign supplier/contract Agency should be submitted

before finalizing the contract.

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

INDIA, IF ANY:

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

2.1.1 The name and address of their agent(s)/representative(s) in India, if any, and the extent of

authorization and authority given to them to commit them. In case the

agent(s)/representative(s) is a foreign Company, it shall be confirmed whether it is a really

substantial Company and details of the company shall be furnished.

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

agent(s)/representative(s) in India.

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

agent(s)/representative(s) in India, may be paid by RINL in Indian Rupees only.

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

SUPPLIER/CONTRACT AGENCY AND FURNISHING OF REQUISITE

INFORMATION:

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

their offers:

3.1.1 The name and address of foreign supplier/contract agency indicating their nationality as well

as their status, i.e., manufacturer or agent of manufacturer holding the Letter of Authority.

42

3.1.2 Specific Authorization letter by the foreign supplier/contract agency authorizing the agent to

make an offer in India in response to tender either directly or through their

agent(s)/representative(s).

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

3.1.4 Confirmation of the foreign supplier/contract Agency of the Bidder, that the

commission/remuneration, if any, reserved for the Bidder in the quoted price (s), may be paid

by RINL in India in equivalent Indian Rupees.

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

for payment of the commission/remuneration payable, if any, to the agent(s)/representative(s)

in India in Indian Rupees, as per terms of the contract.

4.1 Failure to furnish correct information in detail, as called for in para 2.0 and/or 3.0 above will

render the bid concerned liable for rejection or in the event of materialization of contract; the

same is liable for termination by RINL. Besides this, other actions like banning business

dealings with RINL, payment of a named sum etc., may also follow.

Note: The following persons have been appointed as Independent External Monitors (IEMs) to

oversee the implementation of 'Integrity Pact' in RINL.

1. Sri PC Parakh, IAS (Retd.) ] (for details please see our

2. Sri V Velayutham, Ex.DG (RD)&SS ] website www.vizagsteel.com)

43

ANNEXURE-12 LETTER OF INTENT (LOI)

To M/s._________________ ____________________ Dear Sir, Sub: Our Tender Notice No…………….dtd…………for conversion of TMT Rebars and or Structurals under SPU- Conversion arrangement at …………………. Ref: Your Tender Quotation dt……….. in response to the subject Tender Notice. 1. Please refer to your above Tender Quotations opened on ……….and also (strike out whatever is not

applicable) the subsequent negotiation held on …….. and/ or your correspondence dated ………… and ………….

2. We have the pleasure to inform you that your above tender has been accepted by us. You are,

therefore, requested to submit to us on or before……………, the following documents, amongst others, as already stipulated in the Tender Terms.

a. Security Deposit towards performance of contract (as per Annexure – 8) if SD is submitted in the form of BG), Bank Guarantee for financial coverage for material as per the Proforma at Annexure-9) from a scheduled Bank, Custody-cum-Indemnity Bond (Annexure –10) for due performance of all the obligations under the contract.

b. Original BIS Certificate and process license.

c. Any other documents necessary as per the local conditions ** 3. In the event you fail to submit the above document(s) within the prescribed time, the acceptance

of your tender shall be withdrawn and you will be held responsible for all consequences. 4. On your compliance of the above within the time and prescribed herein, we shall issue you a Work

Order enabling you to commence Conversion work envisaged under the contract awarded to you. 5. Non compliance/ non submission of any of the documents indicated above by the date indicated at

para 2 above, the EMD deposited by you shall be liable for forfeiture/encashment by the Company and you may be debarred from participating in future tenders for Conversion.

Please acknowledge receipt. Thanking you, Yours faithfully, For Rashtriya Ispat Nigam Limited Sr Branch Manager ** to be deleted wherever required.

44

ANNEXURE –13

PROFORMA AGREEMENT FOR STEEL PROCESSING UNIT (SPU)

ARRANGEMENT OF RASHTRIYA ISPAT NIGAM LIMITED AT ………………..

ContractNo./Ref.No ……………………….. ………… dated…………

THIS AGREEMENT made on this ……….. day of ……………. between the Rashtriya Ispat

Nigam Limited (RINL) , a Govt. Company incorporated under the Companies Act, 1956 having

its registered office at Administrative Building, Visakhapatnam Steel Plant, Visakhapatnam 530

031 and also having interalia one of its Branch Sales Office (BSO) at ……………. hereinafter

referred to as 'The Company' (which expression shall wherever the subject or the context so

requires shall include its successors and assigns) of the ONE PART AND M/s.

……………………………. A Company/Partnership Firm or Proprietorship Firm (as the case

may be) having their Registered Office/principal place of business at ……….hereinafter referred

to as 'The Steel Processing Unit (SPU) (which expression shall wherever the subject or the

context so requires shall include their successors and permitted assigns) of the OTHER PART.

WHEREAS the Company has issued advertisement for appointment of SPU at……… on the

terms and conditions as specified in the Tender documents as well as in its annexures.

AND WHEREAS the SPU has submitted the Tender for appointment of SPU as per the terms

and conditions and rates specified in the Tender which has been accepted by the Company and

the job of Production/ Conversion of steel materials at …………(place) has been awarded to the

SPU vide its Work Order No………………..dated …………………… .

AND WHEREAS it has been considered necessary and expedient to incorporate the terms and

conditions as contained in the Tender documents in an instrument in writing.NOW THESE

PRESENT WITNESSETH and it is hereby agreed to and declared by and between parties hereto

as follows: -

1. In consideration of the payments to be made by the Company in terms of the contract,

the SPU covenants and agrees with the Company to undertake the job of Production/

Conversion of Steel materials at……… in the manner required and the SPU agrees to do

all such Conversion job strictly as per the terms and conditions as are mentioned in the

Tender documents referred to in the various Annexures as under.

2. The various Annexures set out below and hereby annexed and marked as Annexures-1 to

25 mentioned hereunder shall constitute the contract for the purpose of construction,

interpretation and effect thereof.

(a) Notice inviting Tender

(b) Annexure - 1 Instructions to Tenderers

(c) Annexure - 2 Terms & Conditions of SPU.

(d) Annexure - 3 Solvency Certificate issued by Bankers

(e) Annexure - 4 Chartered Engineer Certificate

(f) Annexure - 5, 6,7, Schedule of SPU Charges

(g) Annexure - 8 Bank Guarantee towards performance

(h)Annexure - 9 Bank Guarantee Towards Financial coverage

45

(i) Annexure - 10 Custody & Indemnity Bond for SPU Contract

(j) Annexure - 11 Integrity Pact

(k) Annexure - 12 Letter of Intent

(l) Annexure - 14 Work Order.

(m) Annexure -15 No claims certificate

(n) Annexure - 16 weekly report of conversion details

(o) Annexure - 17 Roles and Responsibilities of Third Party Inspection agency

(p) Annexure - 18 Format for Test Certificate

(q) Annexure - 19 Roles and responsibilities of RINL In-charge

(r) Annexure - 20 Covering Letter for submission of Tender

(s ) Annexure - 21 Consent for E-payment

(t) Annexure - 22 Check list

3. In consideration of the due performance, execution and completion of the job strictly in

terms of this Agreement, the Company covenants and agrees to pay to the SPU such

sum(s) as may become payable to the SPU as the agreed rates as borne out by the

Schedule of Conversion Charges referred to in the Annexure-5,6,7 of Clause 2 above.

4. The Agreement shall be effective from ………(date) and shall remain in force for a

period of five years (extendable for further 2 years) from the date for commencement of

work as mentioned in the Work Order unless terminated earlier by the Company.

5. No modification of this Contract shall be valid and binding upon the parties hereto unless

the same are made in writing and are signed by the parties and termed as an amendment

to the Contract.

6. Failure to enforce any of the terms and conditions contained in this Contract shall not

operate as a waiver of the terms and conditions or be construed as breach thereof.

IN WITNESS WHEREOF the parties hereto have executed these present on the day, month and

year above written at……….. . (Name of the place)

_________________ _________________________

Name & Signature of Sr Branch Manager

For and on behalf of For and on behalf of

Steel Processing Unit Rashtriya Ispat Nigam Limited

WITNESSES WITNESSES

1._______________________ 1.____________________________

________________________ ____________________________

2.______________________ 2 ._____________________________

46

ANNEXURE-14

WORK ORDER

To,

M/s._______________

___________________

Dear Sir,

Sub: Our tender Notice No…………………. dtd………………

Ref: i) Your tender No………………..dtd…………

ii) Our letter no. ………dtd………..

(Letter accepting tender)

iii) Your letter No…………….dtd…………

(Letter under cover of which documents indicated in letter accepting tender have been produced

by the successful tenderer).

This has reference to your letter no………….dtd………. under cover of which you have

submitted the documents as indicated in our letter no………………..dtd………. (Letter of

Intent) .We are issuing this work order to enable you to commence the conversion operations

under the Contract immediately/ on and from………. (date).

Thanking you,

Yours faithfully,

For and on behalf of

RASHTRIYA ISPAT NIGAM LIMITED.

SR BRANCH MANAGER

47

Annexure-15

PROFORMA FOR NO-CLAIM CERTIFICATE

To,

The General Manager (Marketing)

Marketing Department

Visakhapatnam Steel Plant

Rashtriya Ispat Nigam Limited

Visakhapatnam

Dear sir,

Sub: No claim certificate

I/WE hereby certify that, except for the unpaid bills mentioned hereunder for work

done as per our Contract No............... dated.......... with you for conversion of RINLs

Cast Billets in to TMT Rebars and or Structurals , I/WE have no claims against your

Company.

Bill no. Date Amount

Further it is to inform that this certificate is issued without prejudice to the pending

claims (if any) against RINL by us.

Date: -----------------------------

(Signature of the Contractor)

Place:

Name of the signatory: Seal of the Employer:

48

ANNEXURE – 16

PROFORMA FOR REPORTING WEEKLY STATUS OF CONVERSION

UNDER SPU-CONVERSION

Position as on ……

A) Conversion details and stock

Stock of

Semis

as on

beginning

of the

month

(MT)

Semis

received

during

the

fortnight

(MT)

Size wise

Conversion

done

(MT)

Stock of

converted

product

held

(MT)

Stock of

semis

in hand

(MT)

B) Supply position

D.O.

No. &

Date

Size

Quantity

(MT)

Qty

delivered

during

the week

(MT)

D.O.

Balance

(MT)

C) Please remit payment of Rs. _________ (Rupees ___________) towards SPU charge.

Signature with Seal

(Name & Add of SPU)

To

The Branch Manager

Branch Sales Office

______________

49

ANNEXURE 17

ROLES AND RESPONSIBILITIES OF THE TIRD PARTY INSPECTION

AGENCY(TPIA) FOR SPUs

The TPIA will be required to assume full responsibility on behalf of RINL in regard to receipt of

Semis (cast billets), production, quality and despatch of finished steel at SPU premises related to

RINL’s contract with its Steel Processing Unit (SPU). This would include inspection of raw

materials and finished products through the SPU route as well as of despatch clearance.

Further, they should also ensure that

(1) The finished products converted with RINL embossing under the contract are produced

only from the raw materials supplied to the SPU by RINL for the purpose.

(2) The materials having RINL’s embossing is delivered by the SPU only against delivery

orders issued by RINL.

(3) No material rolled by SPU out of raw materials not issued under SPU contract should

have RINL embossing.

The TPIA will be required to take all actions that are in the interest of RINL in operation of the

contract with SPU.

The TPIA shall be required to carry out following tasks

1. To certify chemical composition (by witnessing, Testing in Spectrometer/ Stolhor’s

apparatus), mechanical properties(by witnessing Tensile test in UTM, Bend Test, Hardness

Test in Brinel/Vickers machine and Fracture test through Charpy machine) and

microstructure pattern of the products rolled based on sample testing, drawn as per sampling

plan detailed below. The inspection will be carried out as per the Quality Assurance Plan

drawn and the TPIA should inspect/ supervise testing accordingly.

2 To certify that the material tested meets the requirements of the ordered specification of

RINL on the SPU in all respect as given in the IS/RINL specification for that grade including

tolerances, surface characteristics etc.

3 To certify that proper tracing back of the tested sample has been done up to the raw material

stage and they have been rolled from the raw material supplied by RINL to the Steel

Processing Unit.

For the same, the TPIA should witness all operational activities like witnessing receipt of

RINL’s raw materials in SPU’s yard, ensure appropriate marking and stacking of the semis at

the designated location, witness cutting (if carried out) and charging of RINL’s semis in the

furnace and subsequent rolling into finished products.

50

Further, in order to facilitate the tracing back, the TPIA should ensure proper

maintenance of the master log book by the SPU, as may be required, detailing the lot

number, size, grade, vehicle number, date of receipt, TC number of the plant, Heat No.,

chemical composition as given in the TC, No. of pieces received, results of visual

inspection carried out, check analysis report on chemical composition on the input side

and should assign a unique lot No. per vehicle load.

In case of variations beyond prescribed limit of IS/RINL specification between heat and

product analysis of input material, the chemical composition of input material should be

got retested by the third party Inspection Agency and recorded under his signature. Only

if the same are established to be within prescribed limit of IS/ RINL specification the

rolling should be undertaken. Any Semis(Cast billets) found unsuitable for Rolling will

be sent back to the stockyard under the Joint inspection of TPIA, SPU & Branch

Officials.

On the output side, sizes of material rolled, grade, tonnage, date of rolling and results of

mechanical and chemical testing should be entered into against the unique lot No.

allotted. When the material of that inspected lot is despatched from the premises of the

SPU the challans No., Test Certificate No. issued, Vehicle No., and date of despatch and

destination should be entered into against the unique lot No. allotted. The same unique lot

No. should also be assigned to the final product. In the master log book, the third party

Inspection Agency should affix his signature with the date of inspection of the lot. This

will enable complete tracing back of the finished material up to the raw material stage.

4. To countersign and certify the test certificate issued by the SPU with their official seal.

TPIA should also ensure that the TC’s issued for the finished products contain the Heat

Number, (available from the Test certificate issued from the plant as corresponding link

to the Semis), along with Lot Nos. allotted before countersigning the TC’s.

5. To also affix their seal on the tag of the product bundle.

6. Submission of report to the Sr Branch Manager on daily basis, listing out the lot numbers

inspected and certified by them detailing the size, grade, tonnage and date of

inspection/certification of both input and output products.

7. The following sampling plan will have to be followed by the TPIA:

a) In case of Reinforcement Bars, one sample per 10 Mt or part thereof should be tested. In

case different sizes are rolled, one sample from each size out of 10 Mt of that size should

be tested.

b) In case of Structurals, one sample per 5 Mt on one size should be tested.

8 a) Deployment of TPIA personnel at the premises of SPU on 24 hrs basis is the essence of the

contract.

b)The TPIA shall deploy their employees at SPU’s premises (as the case maybe) from the

date of commencement of work as stipulated in the Work Order.

51

c) TPIA shall employ for RINL’s work under this contract only those inspectors who have

minimum Educational qualification of a Graduate Degree in science/ Engineering

Degree/Diploma, preferably with qualifications & experience in Testing & inspection.

d) RINL reserves the right to seek replacement of unsuitable inspector. RINL’s decision in

this regard shall be final.

e) Successful tenderers’ representative(s) shall maintain a daily attendance register which

will be kept at the SPU premises at all times.

52

ANNEXURE-18

TEST CERTIFICATE

RINL TMT/ STRUCTURALS

(Name of the SPU)

Steel Processing Unit of RINL

…….

(Address of the SPU)

(BIS License No.)

REGULAR TEST CERTIFICATE INFORMATION

ISI

MARK

53

ANNEXURE-19

ROLES & RESPONSIBILITIES OF STEEL PROCESSING UNIT INCHARGE (RINL)

1. PRIMARY ROLE :

Responsible for overseeing the conversion process through SPU at the location and

implementation of the SPU agreement.

2. REPORTING/RELATIONSHIP :

Reporting Officer : Sr B.M Concerned

3. FUNCTIONS AND RESPONSIBILITIES :

A Implementation of Terms and Conditions of SPU Contract.

B. Planning of input material, Regular Test Certificate information.

C. Ensuring through close Supervision, Receipt, appraisal, proper Stacking and

identification of semis (Cast Billets), Documentation thereof and linkage with test

certificates.

D. Production in consultation with RM/Sr BM and SPU.

E. Ensuring sample testing of finished products and record keeping thereof.

F. Ensuring through close supervision, bundling painting, marking/tagging of converted

materials.

G. Ensure proper linkage exists between finished & input material through proper

documentation and records.

H. Conduct random test checks of finished product samples.

I. Ensuring regular calibration of the weigh-bridge(s) of SPU and maintenance of records of

zero error readings.

J. Coordination with concerned branch/stockyard for placement of vehicles.

K. Facilitating delivery of finished goods, through scheduling of vehicles.

L. Drawing schedules for delivery of materials from SPU; i.e to Customers, concerned

stockyard and other Stockyards (if required).

M. Calculating the cost of economics for stock transfer to various stockyards.

N. Facilitate the process of third party inspection.

O. Coordination of activity related to rejection of finished materials.

54

ANNEXURE-20

COVERING LETTER FOR SUBMISSION OF TENDERS To,

The Sr Branch Manager

Rashtriya Ispat Nigam Limited

B-5, ROC Complex

Shankar plaza, Rajnagar

Ghaziabad 200 001 Dear Sir, Sub: Tender for entering into contract as Steel Processing Unit of Rashtriya Ispat Nigam Limited for

Production / Conversion of TMT rebars and or Structurals at -----.

1. Subject to the instructions and conditions given in the tender document, terms and conditions of contract and draft agreement annexed thereto, I/We hereby tender for the contract for working as Steel Processing Unit for Rashtriya Ispat Nigam Ltd. I/We hereby certify that I/We have examined and am/are familiar with all the provisions of this tender document and agree to abide by all the terms and conditions laid therein.

2. The following certificates/documents are enclosed:

- Detailed list indicating documents/statement submitted as part of Pre-Qualification Bid including copy of BIS license, process license in case of TMT, declaration of ownership of computers, title deeds/ lease agreements for land as proof of possession, proof of ownership of equipments and facilities with details including weighbridge(s), excise and sales tax registration etc.

- Recent experience certificates showing experience in Production/ Conversion of TMT Rebars/Structurals (Hot rolled long products).

- Sample Documents indicating ongoing contracts in hand, if any. Documents like Balance Sheet and PL account on financial standing of the firm/company for last 3 financial years or for the period since commencement of business whichever is earlier. Cover sheet indicates my Company’s net worth and turnover for past three years.

- Documents regarding constitution of the firm/company like partnership deed, memorandum and articles of association, etc.

- Evidence of the authority of person signing this proposal and to a Contract -resulting there from and the requisite Powers of Attorney (if required).

- Details of experienced staff on hand and organization structure to be made available at ------------------------ for this work.

- Details of Equipment owned and proposed to be deployed along with proof of owning/leasing in form of letters from actual owners regarding their leasing it to me/us for duration of contract (if required).

- Certificate from ________________ (Name of Bank) who are my bankers and are a schedule bank about my sound financial standing.

- My self declaration stating that I have the resources to undertake the SPU Conversion job envisaged in the tender.

55

Self Declaration as to whether I have any relative within the meaning of Section 6 read with Schedule 1A of the Companies Act 1956, employed in any capacity in RINL. This tender document with all pages intact and duly signed by the authorized person.

3. A sum of Rs._______________ (Rupees _____________________) only is forwarded

herewith as Earnest Money in the form of demand draft / PO / Banker's Cheque No._______ drawn on ______________ in favour of Rashtriya Ispat Nigam ltd payable at ___________.

4. I/We agree to keep this tender open for a period of 120 (One Hundred Twenty) days from the date fixed for opening and the same cannot be withdrawn from the said period of 120 (One hundred Twenty) days or until a contract for the said work is fully executed, with a third party, whichever is earlier.

5. I/We do hereby declare that the entries made in the tender document and the annexures /appendices attached there are true.

Yours faithfully, Signature of authorised representative of Tenderer

Name of the authorised signatory):

Tenderer's address:

____________________________

_______________________

Telegraphic Address:

Telephone Numbers:

E-Mail Address:

Signature of Witnesses

Address of Witnesses

1._____________________________

____________________

2._____________________________

____________________

56

Annexure-21

CONSENT FOR E - PAYMENT

From

-------------------------------

-------------------------------

-------------------------------

To

The Sr Branch Manager

Rashtriya Ispat Nigam Limited

B-5, ROC Complex

Shankar plaza, Rajnagar

Ghaziabad 200 001

Sub :Consent for E-Payment

Ref : Contract /WO No :

“ I/We hereby convey our consent that the payment made by RINL/VSP of any sum due to me /us,

directly remitting the same to my /our Bank, the address and the number of which is furnished shall be

in full discharge of the particular bills, raised by me/us and I/We shall not have any claim in respect of

the same.

Undertaking:

“I/We hereby undertake that any payment made direct to me/us or to bank account shall be in full

discharge of the obligations of RINL/VSP and I/We shall have no claim whatsoever in respect of the bill

for which the payment is made.”

I/We opt for EFT/Direct Credit (Strikeout whichever is not applicable)

I/We furnish here below the bank account details:

Name of the Bank

Branch Name, place and MICR Code of the Branch

Account Number in full

Type of Account

Name and style of account

For__________________& Company

Authorised Signatory /Proprietor

57

Annexure-22

Check List

1. Part-A is submitted in a sealed cover along with following documents

(i). EMD in the form of DD/PO/BG Yes/No

(ii) Cost of tender documents in case of down loading from website Yes/No

2. Part-B is submitted in a sealed cover along with following documents-5 sets

(Original + 4 copies)

(i)Covering Letter duly signed Yes/No

(ii) (iv) Tender documents issued by RINL/VSP (or) Tender documents Yes/No

down loaded from VSP’s website duly signed on all pages

3. Other Documents along with Part-B (5 sets -(Original + 4 copies))

(i)Experience Certificate as per the prescribed format (Original) Yes/No

(ii)Copies of audited Balance sheets and P/L account certified by CA Yes/No

(iii)Land Documents

(a)In case of own land: Copy of title deed in the name of the tenderer Yes/No

(b)In case of Leased Land: Registered Lease Agreement for five years

along with title deed of the offered land in the name of the lessor/lessors

(iv) PF registration Certificate or an Undertaking to submit the same before Yes/No

Commencement of work of the contract

(v) ESI Registration Certificate (if applicable) or an Undertaking to submit the Yes/No

same before commencement of work of the contract

(vi) Notarised Affidavit (Original) Yes/No

(vii)Details of the tenderer Yes/No

(a)Copy of partnership deed and proof of registration of the firm for

Partnership firms

(b)Copy of Articles and Memorandum of Association for Companies

58

(viii)Reference letter from the Banker as per the prescribed format (Original) Yes/No

(ix)List of equipments proposed to be deployed Yes/No

(xii)Copy of Service Tax registration Certificate(if applicable) Yes/No

(xiii)Details of the land proposed for the SPU along with dimensional sketch Yes/No

(xiv) Blank price bid format duly signed on all pages Yes/No

(xv) Integrity Pact format duly signed on all pages Yes/No

4. All the copies being submitted are duly authenticated by notary Yes/No

5. Any other relevant documents submitted Yes/No

6. Part-C (Price bid) is submitted in a separate sealed cover Yes/No

RINL VIGILANCE ���� TOLL FREE NUMBER 1800 425 8878

59

Annexure- A

Suggestive Specifications for Minimum72000 TPA

TMT Bar Mill and or Structurals with allied facilities

1 INTRODUCTION

The mill shall produce TMT rebars of dia. 6-32 mm in straight lengths and or Structurals from

Cast Billets 150x150 mm /200x200mm . It will be a semi-continuous, cross country type, single

strand configuration Mill.The proposed requirement of land is around 12 acres.

2 TECHNOLOGICAL PARAMETERS

1. The mill shall have technological parameters as given below:

2. Mill Capacity : 72000 tpa

3. Working days / year : 307 days

4. Working pattern: 3.shifts (8 h)

5. Available hours / year : 7368 h

6. Mill utilisation : Min 6000 T per month.

7. Overall yield : 95%

8. Power requirement : 120 kWh/t

9. Hot hours / year : 5526 h

10. Required rolling rate : 18-20 tph

11. Input material : Rolled / Concast billets

12. 1500 mm (two rows)

13. 3000 mm (single row)

14. Finished product : TMT bars in straight lengths dia. 6-32 mm and or /Structurals

3 PROCESS DESCRIPTION

The mill shall have the configuration of single strand rolling. The mill shall have a pusher

type reheating furnace of adequate size to discharge billets at a rate of 20 tph to the mill.

The full length rolled / concast billets shall be received from rail / road transport.

The billets shall be unloaded and stacked in racks in the yard. The billets of full length

received shall be cut (gas / shear) to required length and stacked in cut billet racks. The

billet yard shall have adequate space to store purchased billets stock of 15 days and cut

billet stock of 7 days.

The cut billets shall be placed on charging grids by EOT crane, from where they shall be

placed on charging roller table in lots. The charging roller table shall carry the billets in

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front of furnace pusher. Billets in single row / double row depending on the size shall be

pushed inside the furnace by the furnace pusher.

The heated and soaked billets, one at a time, shall be discharged on the discharge roller

from the furnace at 1150-1250 0C by the ejector. The billet shall be made to fall on the

mill approach table by the discharge skid mechanism. The primary scale generated in the

furnace shall get removed from the billet during this process.

The billet shall be taken into the 3 Hi mill stand of the roughing mill train. The billet will

undergo multi-pass reduction with the help of roller tables, tilting table and tilting

mechanism. The rolled stock shall then enter the alternate 2 Hi mill stands of the

roughing mill trains and undergo continuous rolling through inter stand connecting

repeaters.

The front end of the rolled stock shall be cropped in a crop cum cobble shear before it is

taken to the intermediate mill train by a guide channel and pinch roll.

The rolled stock shall undergo reduction in the alternate 2 Hi stands of this mill train

connected by repeaters. The rolled stock shall then enter the alternate 2 Hi /continuous 2

Hi stands of the finishing mill train for further reduction to finished size.

The rolled bar shall be quenched in the water cooling tubes of the TMT line. The TMT

bars (quenched bars) shall be taken to the cooling bed after being cut in the dividing

shear. The quenched bars shall be normailsed in natural air during stay in the cooling bed

and shall gain the desired metallurgical properties of TMT bar. The cooled TMT bars

shall then be taken in lots by the delivery roller table to the cold shear for cutting into

marketable lengths.

The cut TMT bars shall be bundled, tied and stored in the storage bay for dispatch.

4 MAJOR FACILITIES

The proposed mill shall be installed in a total area of about 30,000 to 40,000 m2.

The brief description of the proposed mill shall be as mentioned below:

1) Common facilities

i) Billet yard

ii) Reheating furnace of suitable capacity

iii) Mill trains:

• Roughing mill

• Intermediate mill

• Finishing mill

iv) Crop cum cobble shears

v) Cooling train comprising of water cooling boxes, etc.

61

2) Facilities for line producing TMT bars in straight lengths.

i) Pinch roll

ii) Dividing shear

iii)Cooling bed with roller tables

3) Facilities for storage & handling

4) Arrangement of bulk power supply from state electricity board and for transmission of

power

5 DESCRIPTION OF MAJOR FACILITIES

5.1 BILLET YARD

Billets shall be stored in stacks in the billet yard. Two furnace charging grates of suitable

size shall be provided in the billet yard for charging of billets to the reheating furnace by

means of charging roller tables. Billets shall be loaded on charging grates by overhead

EOT crane of the billet yard. The charging grates shall have the facilities of rejecting the

billets, if required.

5.2 REHEATING FURNACE

The mill shall have a pusher type of reheating furnace with end charging and side

discharging facilities. The capacity of the furnace shall be suitable to the mill

configuration and working pattern of the mill. The billets shall be heated and soaked upto

a rolling temperature about 1250oC. Heated and soaked billets shall be ejected from the

furnace by means of ejector mechanism.

5.3 BILLET FEEDING MECHANISM TO THE MILL TRAIN

The proposed mill shall have a single strand configuration. A draw out pinch roll drive

mechanism shall ensure complete trouble free ejection of billets, from the furnace and

feeding to the mill.

5.4 ROUGHING MILL TRAIN

The roughing mill train shall consist of adequate number of mill stands of suitable size.

The first stand shall be a 3 Hi horizontal mill stand and subsequent stands shall be of

alternate 2 Hi horizontal configuration. The mill stands shall be connected by repeaters.

The mill stands shall be driven by a common main drive motor of adequate capacity with

suitable gear box and pinion stand.

5.5 INTERMEDIATE MILL TRAIN

The intermediate mill train shall consist of adequate no of 2 Hi horizontal mill stands of

suitable size. The mill stands shall be connected by repeaters. The stands of this mill train

shall be driven by a common main drive motor of adequate capacity with suitable

gearbox and pinion stands. The mill train can have provisions of speed increaser, if

required.

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5.6 CROP CUM COBBLE SHEAR

The crop-cum-cobble shear shall be provided after roughing mill trains. The crop-cum

cobble shear shall cut the front end and the back end of the rolling stock to ensure smooth

entry to the intermediate mill train. The crop-cum-cobble shear shall be provided with

crop removal system.

5.7 FINISHING MILL TRAIN

The finishing mill train shall consist of adequate no. of 2 Hi horizontal mill stands with

direct drive of suitable size. The mill train shall consist of drive motor with reduction

gear box cum pinion stands. The intermediate and finishing mill trains shall be connected

by repeaters if required.

5.8 COOLING TRAIN WITH WATER COOLING BOXES

The mill shall have cooling train with water cooling boxes for production of TMT bars.

5.9 FACILITIES FOR LINE PRODUCING TMT BARS IN STRAIGHT LENGTHS

5.9.1 Pinch Roll and Dividing Shear

The rolling stock from cooling train shall be fed to a pinch roll unit with bifurcator and a

dividing shear. This unit shall ensure the proper transportation of cut pieces to the cooing

bed.

5.9.2 Cooling Bed with Roller Tables

The cut pieces shall be accommodated on cooling bed of adequate size. The cooling bed

shall be provided with run-out roller table for smooth conveyance of cut pieces to cold

shear.

5.10 Cold Shear

The long pieces from cooling bed shall be cut to marketable lengths by this cold shear.

The cold shear shall have measuring gauge, roller tables and the transfer rack with

cradles.

5.11 ELECTRICS

5.11.1 HT Power Supply Scheme

The envisaged specific consumption of electricity per tonne of finished products shall be

about 120 kW/t. A 11 kV board with incomer panels and adequate no. of outgoing

feeders with breakers, metering and protection shall be located in mill area to cater HT /

LT power requirements of entire mill drives.

5.11.2 LT Substation

63

LT substation to meet the LT power requirement shall be located within mill area with

power transformers, LT boards. Power supply to various MCCs, PDBs for main mill

drives and auxiliary drives shall be catered through the proposed LT boards.

5.11.3 Electric House / Electric Rooms

As per load centres electric houses are required to be located at different locations.

Distribution transformers, HT/LT boards, MCCs, PDBs and other control panels shall be

housed in these electric houses.

All electrical rooms for housing electronic panels including operator’s pulpit shall be kept

in suitably controlled environment. LT boards / electrical panels shall be kept in

pressurised air ventilated rooms.

5.11.4 Shop Electrics

For fixed speed, and step control, if any, relay logic shall be used with MCCs and motor

control panels. The EOT cranes, welding points and mechanisms with local starters will

be fed from power distribution boards (PDBs).

5.11.5 Illumination

Sufficient illumination shall be provided to electrical houses, pulpits, cable galleries, shop

bays, area lighting and road lighting within the mill complex.

5.11.6 Earthing

Suitable number of electronic and electrical earthing pin shall be provided for earthing of

all current carrying equipment as per IS and IE standards.

5.11.7 Drive Control and Automation

Process control for essential automation and sequence logic controls shall be used for

equipment envisaged, if required depending on the level of automation.

The control shall basically comprise of control of reheating furnace equipment, control of

shears, etc. The modes of control shall be local, local-manual, remote-manual, etc. For

operator interface MMIs shall also be installed, if required.

5.11.8 Fire Detection and Alarm System

Automatic fire detection and alarm system shall be provided in control pulpits,

Instrumentation rooms, electrical rooms, computer room, cable gallery, false floors /

ceiling, transformer rooms, etc.

5.12 STRUCTURAL WORKS

64

Structural steel works in the proposed mill shall comprise of all building structures such

as columns, gantry girders, rails, trusses, bracings, posts, walkways, platform, lighting

walkways, purlins, side runners, louvers, access stairs, ladders, handrails, steel doors,

gutters, downtake pipes, monorails, etc. CGI sheeting for roof and side covering shall be

as per IS specifications / standards provided by the client.

5.13 CIVIL WORKS

2.13.1 It shall involve the design philosophy, construction materials and other aspects related to

civil works for construction of the proposed mill. All civil erection works shall be carried

out as per applicable standards, drawings, specifications and regulations. The erection

tolerances shall be within the standard specified limits. Seismic loads shall be taken

accordingly to IS specification / standards furnished by the client for earthquake

resistance design of structures. Administrative building, shift buildings, boundary wall,

main and other gates, road within works, area drainage, connecting road from highway,

water reservoir, tunnels, canteen etc

5.13.2 Smooth Movement of vehicles( inward and outward) shall be ensured.

5.14 GENERAL UTILITIES

5.14.1 Water System

Water shall be required for cooling, cleaning, flushing, fire fighting and other process

needs. Direct as well as indirect water cooling circulation systems shall be required for

use at different consumer points in the mill. The clean industrial water shall be required

for indirect cooling purposes such as lubrication / hydraulic systems, heat exchangers of

motor room, air cooler, furnace, etc.

The hot return water from lubrication system / hydraulic systems, air coolers and heat

exchanger will be further used as direct cooling water for various consumers. The water

requirement shall be about 300 to 500 m3/h.

5.14.2 Compressed Air

Compressed air at a pressure of about 4-8 kg/cm2 shall be required at different consumer

points. Depending on the type of the equipment selected, compressor of suitable size

shall be provided.

5.14.3 Air Conditioning and Ventilation

The maximum temperature should not exceed 40oC inside substation, control room &

other lubrication / hydraulic equipment enclosures and 45oC for pressure water station.

Fresh, filtered and cooled air shall be supplied to substations, control rooms, etc.

Electrical control room and substation shall be kept pressurised to prevent any dust entry

in the room. Air conditioned premises shall be maintained at a temperature of 25+2oC

and at relative humidity of 55+10 %.

5.14.4 Fire fighting facilities

65

Suitable and adequate fire fighting facilities shall be provided. Adequate type fire

extinguishers shall be provided for lubrication systems / hydraulic systems and electrical

control rooms & substations.

5.15 OTHER FACILITIES

5.15.1 Roll turning & Guide Shop, Workshops

A guide and roll shop shall be located at suitable location to cater to the daily rolling and

various maintenance and operation needs. The work shops shall be equipped with

adequate number of machines like lathes, surface grinders. welding transformers, gas

cutting equipment, etc

5.15.2 Transfer cars (if required)

5.15.3 EOT Cranes

The mill shall have adequate no. of EOT cranes in all the bays to ensure proper handling

of materials.

5.15.3 Hydraulic and lubrication systems, Weigh bridge

5.15.5 Industrial water & drinking water system, rain water harvesting

5.15.6 Pollution control measures for air, water, ground and noise

5.15.7 Telecommunication facilities and Instrumentation

-----00------