RINL/VSP/ITD/2014-15/BFG SLAG(FRESH SLAG)/NIT 26 DATED … Slag NIT 2… · Website: SUB: NOTICE...

RINL/VSP/ITD/2014-15/BFG SLAG(FRESH SLAG)/NIT 26 DATED 29/12/2014

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RASHTRIYA ISPAT NIGAM LIMITED

VISAKHAPATNAM STEEL PLANT MARKETING DEPARTMENT

EXPORTS SECTION E-mail: [email protected]

Website: www.vizagsteel.com

SUB: NOTICE INVITING TENDER (NIT) FOR SALE OF MIN 2,00,000 MT (+/-10%) & MAX 4,00,000 MT (+/-10%) OF BLAST FURNACE GRANULATED SLAG (FRESH SLAG) ON MERCHANT EXPORT BASIS.

1.0 RASHTRIYA ISPAT NIGAM LIMITED, VISAKHAPATNAM STEEL PLATN (VSP)

INVITES SEALED BIDS FOR SALE OF BLAST FURNACE GRANULATED SLAG (FRESH SLAG) ON EX-PLANT BASIS, ON MERCHANT EXPORT TERMS FOR EXPORT TO ANY COUNTRY FOR TWO YEARS FROM THE DATE OF AGREEMENT.

2.0 INIDCATIVE SPECIFICATION OF BFG SLAG (FRESH) :

CaO 34-40%

SiO2 31-40%

Al203 14.5-20%

MgO 6.5-9.5%

FeO 0.15-1.0% max

MnO 0.15-0.30%

Moisture 13-14% max

Glass content 90% max

3.0 TOTAL QUANTITY AVAILABLE : MIN 2,00,000 MT (+/-10%) & MAX 4,00,000 MT (+/-10%)

4.0 PERIOD OF CONTRACT: UPTO TWO YEARS FROM THE DATE OF AGREEEMNT FROM…………….. TO ………………)

4.1 COUNTRIES FOR EXPORT: ANY COUNTRY (OTHER THAN BANNED COUNTRIES)

5.0 EARNEST MONEY DEPOSIT (EMD)

5.1 EMD SHALL BE SUBMITTED AT THE RATE OF RS.10 PMT FOR THE QUANTITY QUOTED FOR THE TOTAL CONTRACT PERIOD SUBJECT TO A MAXIMUM OF RS.1 CRORE.

5.2 EMD WILL BE ACCEPTED IN THE FORM OF CROSSED DD/TT/BG/RTGS IN INDIAN


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RUPEES. FORMAT OF BANK GUARANTEE (BG) FOR EMD IS ENCLOSED AT ANNEXURE- A. BG IN THE PRESCRIBED FORMAT WILL BE ACCEPTED FOR THE EMD. THE SAME IS TO BE ESTABLISHED THROUGH VISAKHAPATNAM BRANCH OF ANY SCHEDULED COMMERCIAL BANK (AS PER THE ACT PF RBI) OR ANY SCHEDULED COMMERCIAL BANK AT ANY OTHER PLACE SUBJECT TO THE FOLLOWING CONDITION:

i) ANY NOTICE ISSUED BY RINL AT VISAKHAPTNAM BRANCH SHALL BE DEEMED TO BE NOTICE SERVED ON BANK EXECUTING THE BG.

ii) CLAIMS SHALL BE PAYABLE AT THIS BRANCH.

5.3 CHEQUES WILL NOT BE ACCEPTED FOR EMD.

5.4 TENDERS (INCLUDING THOSE FROM PSUs OF STATE AND CENTRAL GOVERNMENT) WILL NOT BE ACCEPTED WITHOUT EMD.

5.5 EMD SUBMITTED IN THE FORM OF BG SHALL REMAIN VALID INITIALLY TILL …………….. (CONTRACT PERIOD) AND MAY BE EXTENDED BY THE TENDERER AS PER THE DIRECTION OF RINL. AFTER ACCEPTANCE OF THE TENDER, EMD OF THE UNSUCCESSFUL TENDERERS SHALL BE RETURNED.

5.6 EMD OF THE SUCCESSFUL TENDERER WILL BE ADJUSTED TOWARDS PERFORMANCE GUARANTEE. ALTERNATIVELY, EMD WILL BE RETURNED ON SUBMISSIONOF BANK GUARANTEE AGAINST PERFORMANCE GUARANTEE.

5.7 EMD SHALL BE FORFEITED WITHOUT REFERENCE, IF THE TENDERER / SUCCESSFUL TENDERER FAILS TO COMPLY WITH ANY OF THE FOLLOWING CONDITIONS:

a) TO KEEP THEIR OFFER FIRM AND VALID FOR ACCEPTANCE BY RINL TILL 1700 HRS IST ON 03/02/2015 OR AS EXTENDED BY RINL.

b) TO FURNISH PERFORMANCE GUARANTEE (IN CASE EMD IS SUBMITTED IN THE FORM OF BG) WITHIN 15 DAYS FROM THE DATE OF ACCEPTANCE OF THE TENDER.

6.0 PRICE:

6.1 CURRENCY OF PRICE : INDIAN RUPEES

6.2 PRICE : THE TENDERER SHALL QUOTE A PRICE PER MT OF BFG SLAG (FRESH SLAG) FOR EX-PLANT. THE LOADING BY RAIL/ROAD SHALL BE DONE AS PER EXISTING SYSTEM OF SELLER. THE PRICE SHALL BE EXCLUSIVE OF EXCISE DUTY, ED CESS, SALES TAX ETC.

6.3 THE ABOVE QUOTED PRICE PER MT IS INCLUSIVE OF MOISTURE CONTENT IN THE BFG FRESH SLAG.

6.4 INVOICE SHALL BE RAISED FOR THE ACTUAL TONNAGE DELIVERED ON EX-


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PLANT BASIS WITHOUT DEDUCTION FOR MOISTURE.

6.5 THE TENDERER SHALL QUOTE A PRICE FOR THE QUANTITY QUOTED AND DELIVERY UP TO ……………….. AS PER CONTRACT .

7.0 PAYMENT TERMS: CASH AND CARRY BASIS. DELIVERY ORDER SHALL BE ISSUED AGAINST 100% ADVANCE PAYMENT. MODE OF PAYMENT SHALL BE BY DD/TT/RTGS.

8.0 VALIDITY : TENDER SHALL BE KEPT VALID FOR ACCEPTANCE UPTO 60 DAYS.

9.0 DIVERSION TO DOMESTIC MARKET:

IN CASE ANY QUANTITY IS DIVERTED TO THE DOMESTIC MARKET BY THE SUCCESSFUL TENDERER OUT OF THE MATERIAL LIFTED FOR EXPORT PURPOSE, THE SUCCESSFUL TENDERER SHALL MAKE GOOD THE PRICE DIFFERENCE BETWEEN THE LIST PRICE OF BFG SLAG (FRESH SLAG) FOR THE MONTH OF DIVERSION AND EX-WORKS PRICE AGREED WITH THE SUCCESSFUL TENDERER FOR EXPORT INCLUDING THE APPLICABLE EXCISE DUTY AND SALES TAX, ETC. IN CASE OF SHORT FALL (I.E.DIFFERENCE IN ACTUAL QUANTITY LIFTED FOR EXPORT OVER THE QUANTITY FOR WHICH PROOF OF EXPORT IS SUBMITTED) THE SUCCESSFUL TENDERER SHALL MAKE GOOD THE PRICE DIFFERENCE AS ABOVE APART FROM COMPENSATING THE AMOUNTS CLAIMED BY THE STATUTORY AUTHORITIES, IF ANY, IN THIS CONNECTION.

10.0 ALL OTHER TERMS AND CONDITIONS SHALL BE REMAIN UNCHANGED.

11.0 IN CASE OF CONTRADICTION ON ANY ISSUE BETWEEN NOTICE INVITING TENDER (NIT) AND TERMS & CONDITIONS, THE PROVISIONS IN NIT WILL OVER RIDE THE TERMS AND CONDITIONS.

12.0 INSTRUCTIONS TO THE TENDERERS: THE FOLLOWING SHALL BE TAKEN INTO DUE CONSDIERATION WHILE SUBMITTING THEIR OFFER:

12.1 LOADING OF BFG SLAG ( FRESH SLAG) WILL BE ALLOWED ROUND THE CLOCK OR AS EXISTING SYSTEM OF SELLER.

12.2 THE MOVEMENT OF VEHICLES WILL BE RESTIRCTED DURING SAFETY TIMINGS WITHIN THE PLANT.

12.3 THE CAPACITY OF THE WEIGHBRIDGE USED FOR SLAG WEIGHMENT IS 60 MT MAXIMUM.

13.0 TENDER SUBMISSION :

13.1 ALL BIDS SHALL BE FURNISHED IN SEALED COVERS IN THREE PARTS AS INDICATED BELOW SUPERSCRIBING “TENDER NOTICE NO.MKTG/2014-15/BFG SLAG (FRESH SLAG)/NIT 26 DT.29/12/2014 FOR BFG SLAG (FRESH) ON EX-PLANT


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BASIS ON MERCHANT EXPORT BASIS”, PART-A, PART-B AND PART-C.

SEPRATELY ADDRESSED TO “DY GENERAL MANAGER(MKTG)ITD, MARKETING DEPARTMENT, VISAKHAPATNAM STEEL PLANT, ADMINISTRATIVE BUILDING, VISAKHAPATNAM-530031, ANDHRA PRADESH, INDIA, PHONE:+91-891-2518226, FAX:+91-891-2518316.

PART-A: IN A SEPARATE SEALED COVER SUPERSCRIBING “EMD” SHALL CONTAIN EMD ALONG WITH ANNEXURE-1.

PART-B: IN A SEPARATE SEALED COVER SUPERSCRIBING “TECHNICAL & MERCHANT EXPORT TERMS AND CONDITIONS, AGREEMENT, INTEGRITY PACT ALONG WITH ANNEXURE-2.

PART-C: IN A SEPARATE SEALED COVER SUPERSCRIBING “PRICE BID” SHALL CONTAINPRICE BID IN FORMAT GIVEN AT ANNEXURE-3.

PART-A, PART-B AND PART-C SHALL BE PUT IN A SEPARATE SEALED COVER SUPERSCRIBING AS “BID FOR BFG SLAG (FRESH SLAG ) ON MERCHANT EXPORT BASIS”.

13.2 SEALED BIDS SHALL BE DROPPED INTO A TENDER BOX KEPT IN THE OFFICE OF DGM (MKTG) ITD MARKETING DEPT BEFORE 15.00 HRS. IST ON 27/01/2015.

13.3 TENDERS WITHOUT SUBMISSION OF EMD SHALL NOT BE OPENED AND SHALL NOT BE CONSIDERED FURTHER.

13.4 BIDS RECEIVED BY FAX/E-MAIL OR LATE BIDS OR BIDS WITH INADEQUATE DETAILS SHALL NOT BE CONSIDERED.

PART A AND PART B WILL BE OPENED AT 15.30 HRS ON 27/01/2015.

13.5 AFTER SCRUTINY OF THE TECHNO-COMMERCIAL TERMS AND SEEKING CONFIRMATIONS FOR DELETING/WITHDRAWING DEVIATIONS, IF NECESSARY, PRICE BIDS OF TENDERERS WHOSE TECHNO-COMMERCIAL BIDS ARE ACCEPTABLE WILL ONLY BE OPENED AND CONSIDERED FURTHER.

13.6 THE DATE OF PRICE BID OPENING WILL BE CONVEYED SEPARATELY OR AT 1530 HRS ON 30/01/2015.

14.0 IN CASE OF SUCCESSFUL TENDERER REQUIRES LAND OUR SIDE VSP BOUNDARY FOR INTERIM STORAGE PURPOSE, THE SAME CAN BE MADE AVAILABLE BY VSP ON CHARGEABLE BASIS AS PER APPROVED TERMS AND CONDITIONS OF RINL AND SUBJECT TO STATUTORY AUTHORITIES GIVING REQUIERD APPROVALS.

15.0 THE TENDERER IS REQUIRED TO UNCONDITIONALLY ACCEPT THE “INTEGRITY PACT” ENCLOSED TO THE TENDER DOCUMENT AND SHALL SUBMIT THE SAME DULY SIGNED ALONG WITH HIS OFFER AND NIT TERMS. OFFER OF THE TENDER RECEIVED WITH OUT INTEGRITY PACT DULY


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SIGNED SHALL NOT BE CONSIDERED. PRESENTLY, SRI V VELAYUTHAM, Ex.DG (RD)&SS AND SRI VENUGOPAL K NAIR, IPS (RETD), HAVE BEEN APPOINTED AS EXTERNAL INDEPENDENT MONITORS (EIM) FOR RINL. THE COPY OF INTEGRITY PACT TO BE SIGNED IS ENCLOSED AT ANNEXURE – G.

16.0 QUALITY OF THE MATERIAL : THE ANALYSIS REPORT ON THE QUALITY OF BFG SLAG FURNISHED BY THE SELLER IS FINAL AND BINDING ON THE BUYER. HOWEVER, THE BUYER SHALL HAVE A RIGHT TO REJECT BFG SLAG AT THE SELLER’S PREMISES IF THE SAME DOES NOT CONFORM TO ACCPETED SPECIFICATIONS, PROVIDED SUCH REJECTION IS EXERCISED BEFORE THE SLAG IS LOADED INTO TRUCK/WAGON. NO CLAIM WHATSOEVER SHALL BE ENTERTAINED AFTER COMMENCEMENT OF LOADING IN THIS REGARD.

17.0 VSP RESERVES THE RIGHT TO CANCEL OR ACCEPT OR REJECT ANY OR ALLBIDS/NIT OR TO APPORTION THE QUANTITIES TO A NUMBER OF BIDDERS IN ANY FORM AND WITHOUT ASSIGNING ANY REASON AND AT SOLE DISCRETION OF VSP AND THE DECISION OF VSP IN THIS REGARD WILL BE FINAL AND BINDING.

DGM (MKTG) - ITD


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ANNEXURE – 1

(PART – A EMD)

(EMD SHALL BE SUBMITTED ALONG WITH THE BID OR BEFORE IN THE FORM OF DD/BG OR RTGS IN INDIAN RUPEES ONLY. PLEASE TICK MARK THE RELEVANT

MATTERS BELOW)

EMD IS BEING SUBMITTED IN THE FORM OF DD/BG/RTGS FOR AN AMOUNT OF ___________________ RS.(______________________). THE RELEVANT DETAILS

TOWARDS EMD ARE AS GIVEN BELOW :

(A) DD NO.________________________DT._________________________.

(B) THE BG TOWARDS EMD IS ENCLOSED BG NO.:___________________________ DT.____________________.

(C) THE RTGS DETAILS TOWARDS EMD IS ENCLOSED:*

UTR NO.______________________DATED______________

Station : SIGNATURE OF THE TENDERER / Date : AUTHORISED REPRESENTATIVE

IN CASE OF BG, THE BG FORMAT IS ENCLOSED AT ANNEXURE-A (BG FOR EMD).

* IF THE PAYMENT OF EMD IS TO BE MADE BY RTGS THE DETAILS OF OUR BANK A/C ARE AS GIVEN AT ANNEXURE A-1.


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ANNEXURE – 2

PART – B (TECHNICAL BID)

PRODUCT : BLAST FURNACE GRANULATED SLAG (FRESH SLAG)

GRDE : (CHEMISTRY AS PER THE NIT)

TENDERED QUANTITY (MT) : MIN 2,00,000 MT (+/-10%) & MAX 4,00,000 MT (+/-10%)

PRODUCT QUANTITY MT PERIOD

TENDER QTY QUOTED QTY

BFG SLAG (FRESH) MIN 2,00,000 MT (+/-10%) & MAX 4,00,000 MT (+/-10%)

VALIDITY : OUR OFFER IS VALID UPTO 03/02/2015.

NOTE : SIGNED NIT OF TENDER OF TENDER NO.MKTG/2014-15/BFG SLAG (FRESH) / NIT 26 DT.29/12/2014, INTEGRITY PACT AND TERMS AND CONDITIONS ARE ENCLOSED TO THE TECHNICAL BID.

STATION : SIGNATURE OF THE TENDERER / DATE : AUTHORISED REPRESENTATIVE


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TERMS AND CONDITIONS FOR MERCHANT EXPORTS

a) Delivery : Ex- Plant, RINL/VSP b) Payment: Advance payment - INR, along with ED, Ed cess & ST. c) Weighment : Weight at VSP’s weighbridge is final d) Price : Rs………../- ( Ex-Plant, RINL/VSP) excluding ED, ED Cess, ST, etc e) Test certificate issued by QATD is final. f) The buyer has to submit CT-1 certificate and H form to avail nil ED & VAT

respectively. g) The buyer has to submit ARE-1 forms duly signed by him. h) The buyer has to submit Proof of Export within 3 months from the date of

dispatch of material from plant. i) Railway Freight/transportation has to borne by the buyer j) The buyer has to sign the Agreement.


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ANNEXURE-3

PART-C (PRICE BID)

PRODCUT - BLAST FURNACE GRANULATED SLAG (FRESH SLAG)

PRICE (RS/MT) RS………….. PMT, EX-PLANT, VISAKHAPTNAM STEEL PLANT, VISAKHAPATNAM, AP, INDIA (EXCLUDING ED, ED CESS AND SALES TAX ETC.)

PRICE (IN WORDS): RS………………………. PMT, EX-PLANT, VISAKHAPTNAM STEEL PLANT, VISAKHAPATNAM, AP, INDIA (EXCLUDING ED, ED CESS AND SALES TAX ETC.)

(QUANTITY & OTHER DETAILS SHALL BE AS PER TECHNICAL BIDS)

STATION SIGNATURE OF THE TENDERER/ DATE: AUTHORIZED REPRESENTATIVE


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Annexure-A

PROFORMA BG FOR EMD

To Rashtriya Ispat Nigam Limited Visakhapatnam Steel Plant Visakhapatnam – 530 031 BANK GUARANTEE NO.

LETTER OF GUARANTEE WHEREAS Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant (hereinafter called “RINL”) have invited Tender vide Tender No.RINL/VSP/ITD/2014-15/BFG Slag (Fresh Slag)/NIT 26 dt.29/12/2014 (hereinafter referred to as the said Invitation to Tender) for sale of Blast Furnace Granulated Slag (Fresh Slag) from Slag Storage Yard (Fresh) to Merchant Exporters for export to any country on merchant export terms for a period of three years and WHEREAS the said invitation to Tender requires that any eligible tenderer wishing to make an offer in response thereto, shall establish an irrevocable EMD in favour of RINL in the form of Bank Guarantee for an amount of Rs…………./- for the quantity being quoted shall be initially valid upto 26/01/2017 as guarantee that the tenderer.

a) Shall keep his offer firm and valid for acceptance by RINL upto 03/02/2015 or as extended by RINL. b) Shall in the event of the offer being accepted by RINL shall make the payment 100% in advance for

the value of BFG Slag (fresh slag) being lifted from time to time. AND WHEREAS M/s…………………………………….. (hereinafter called as said SELLER) wish to make an offer in response to the said invitation to tender for the purchase of BFG Slag (Fresh Slag) on Ex-plant basis for the value of the material being lifted from time to time. NOW THIS BANK HEREBY GUARANTEES that in the event of the said Tenderer failing to abide by any of the conditions referred to in any of the preceding paragraphs, this bank shall pay (through the ………………………….. branch of Visakhapatnam) to Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant, Visakhapatnam, INDIA on demand and without protest or demur Rs……….../- This Bank further agrees that the decision of RINL as to whether the said Tenderer has committed a breach of any of the conditions referred to in the preceding paragraphs shall be final and binding. THIS BANK FURTHER undertakes that this guarantee shall remain irrevocably valid and in force upto 26/01/2017.

For and on behalf of ……………………………….

Name of the Bank

Signature Name

( ) Duly constituted attorney and

Authrozed signatory Designatiion

Name & Address of the Bank


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ANNEXURE-A-1

(RTGS DETAILS)

Name of the beneficiary

Rashtriya Ispat Nigam Limited SBG Byproducts

Address Byproducts Sales Account, Project Office Complex, D Block Visakhapatnam Steel Plant Visakhapatnam-530031 Beneficiary bank details

Allahabad Bank Bank A/c No. 50117690466 Figures Type of Account: Current Micr Code 530010001 Branch Code 210415 Bank Address Dabagardens, Visakhapatnam IFSC Code (Eleven digit) ALLA0210415 Please instruct your banker to indicate your Company name in the Structural message report.


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AGREEMENT FOR SALE OF BFG SLAG ( FRESH SLAG) ON MERCHANT

EXPORT BASIS AGREEMENT NO. RINL/VSP/MKTG/ITD/BFG SLAG(FRESH SLAG)/2014-15/….., DATED …./…..2015. This Agreement made this on ……… day of ………, 2015 Between Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant, a Company registered under the Companies Act, 1956 and having its registered office at Administration Building, Visakhapatnam Steel Plant, Visakhapatnam–530031, India hereinafter referred to as the “SELLER” (which expression shall, unless excluded by or repugnant to the context to be deemed to include its Successors, assigns) of the one part, And M/s. ___________________, a Company registered under the Companies Act, 1956 and having its registered office at ________________________________ India, hereinafter referred to as the “BUYER” (which expression shall, unless excluded by or repugnant to the context to be deemed to include its Successors, assigns) on the other part. WHEREAS the BUYER has agreed to enter into an Agreement with the SELLER for their captive for the purchase of BFG Slag ( Fresh Slag) on Merchant Export Basis, starting from the aforesaid date of agreement, i.e. from ……/…../…….. to …../…../…….. on the following terms and conditions, which are agreed and reduced into writing. Now these presents witnessed and it is hereby agreed and declared by and between the parties hereto as follows: 1.0 Material: BFG SLAG ( FRESH SLAG) 2.0 Annual Quantity: MIN 2,00,000 MT (+ /- 10%) & MAX 4,00,000 MT (+/-10%) Monthly Quantity: The Buyer shall lift monthly quantity on prorate basis regularly, failing which penalty shall be charged , as mentioned at point 15.1 3.0 Quality/Grade: Test certificate furnished by Seller is final and binding on Buyer. However,

the BUYER shall have a right to reject BFG Slag (Fresh Slag) at the SELLER’s premises, if the same does not confirm to accepted Specifications, provided such rejection is exercised before the Slag is loaded into trucks/wagons. No claim whatsoever shall be entertained after commencement of loading in this regard.

4.0 Contract Period: From the date of signing the agreement to …………….


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5.0 Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant, Visakhapatnam, hereinafter

referred to as the SELLER. 6.0 M/s. _____________________________________________, India including his

successors/assigns hereinafter referred to as the BUYER. 7.0 The BUYER intends to buy from the SELLER, BFG Slag (Fresh Slag), as mentioned at point

1 above on Ex-works basis, Visakhapatnam Steel Plant on Merchant Export basis for export to any country (other than banned countries) and the SELLER intends to sell the same on Merchant Export basis and delivery shall be on Ex-works basis, RINL,VSP, Visakhapatnam, within the contract period as mentioned at point no. 4 above.

8.0 Countries for export: Any country, other than banned countries. 9.0 Delivery Schedule: From the date of signing the agreement to …/……/…... 10.0 Price: Rs. _______ PMT (Ex-Works,VSP). The price is exclusive of ED, Ed cess and VAT

etc. The price shall be valid up to __________. 11.0 TAXES & DUTIES:

11.1 All amounts payable by the BUYER under this agreement are subject to applicability of taxes,

levies, cess, duties etc. (Local/State/Central) which shall be borne by the BUYER alone. All taxes, levies, cess, duties etc. (Local/State/Central) as applicable on sale of Steel Products on date of delivery shall be payable by the BUYER at actual and SELLER shall raise invoice accordingly.

11.2 The BUYER shall be entitled to claim any admissible exemption/concessions under Central Excise & Sales tax laws and for that purpose they shall submit all necessary concessional forms/certificates /documents under the statute within the stipulated time under the relevant Act or within agreed time.

11.3 The BUYER (Merchant Exporter) shall submit H Form along with payment to avail nil VAT

or as per practice in vogue and execute necessary bond with Central Excise Authorities for lifting the material without payment of Excise Duty and submit a copy of the relevant CT-1 form before issue of Offer letter or Delivery Order on Ex-works basis (Visakhapatnam, AP). The buyer has to send ARE-1 Forms duly singed by him or as per system in vogue. Further, the BUYER shall also furnish proof of Export, shipment wise within 3 months from the date of dispatch of Steel Products or as permitted by the Statutory Authorities.

12.0 DELIVERY PERIOD & MATERIAL: From ……/…../…… to …../…../…….. &

Material: BFG Slag (Fresh Slag) as mentioned at point 1 above.


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12.1 Material shall be delivered from Ex-Works, Loading point at VSP into trucks/wagons at the SELLER’s premises at Visakhapatnam.

12.2 The material is to be lifted by the BUYER in full rake loads/trucks from Ex-Works, RINL/VSP, Visakhapatnam i.e., from the SELLER’s premises and the BUYER shall tie up with the Railways/transporters for movement of the entire quantity by rail/road from the SELLER’s premises.

12.3 Delivery shall be made by both rail & road means. The responsibility of obtaining permission/approval, if required, from Railways to move the material from the SELLER’s premises to the BUYER’s premises by rail shall rest with the BUYER. The SELLER shall raise the indent on Railways as per the request of BUYER upon completion of all payment formalities. The BUYER shall arrange trucks on his own and authorize the transporter to lift the material on behalf of the BUYER.

12.4 The loading of material into the wagons will be in BUYER’s scope. The BUYER shall not be

allowed to pick or choose the material. It is the BUYER’s obligation to properly ascertain the logistics requirement and expenses involved.

12.5 The risk and property of the material shall pass on to the BUYER immediately after loading

the material into their wagons/trucks at the loading point of the SELLER’s premises. 12.6 In case the BUYER cancels the railway indent, the cancellation charges shall be deducted/

recovered from the BUYER and the balance amount only will be refunded to the BUYER or adjusted against subsequent supplies. The demurrage charges if any will be on account of BUYER.

12.7 The BUYER shall follow and comply with and abide by the delivery/dispatch procedure in

force at the SELLER’s premises from time to time. 12.8 The BUYER shall make all efforts to lift the material uniformly throughout the contract

period. 12.9 Entry and Exit for Trucks/Vehicles: Trucks/Vehicles have to enter and exit through BC Gate /

BCSY of the SELLER or as per existing system of the SELLER. The movement of trucks/vehicles will be restricted during safety timings within the plant premises of the SELLER.

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

i) Loading of BFG Slag will be round the clock OR as per existing system of the SELLER.

ii) Entry and Exit for vehicles: Vehicles have to enter and exit through BC Gate/BCSY OR as per existing system of the SELLER..

iii) The movement of vehicles will be restricted during safety timings within the plant as per existing system of SELLER.

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


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13.0 Performance Guarantee :

13.1 The BUYER shall execute Performance Guarantee equivalent to 5% of the contract value in the form of DD/BG/Bankers Cheque/RTGS. In case of BG, the same has to be submitted as per proforma enclosed at Annexure-B 1. The Performance Guarantee will be discharged on completion of the contract subject to the following:

13.2 In case the BUYER fails to lift the contract quantity during the CONTRACT PERIOD, the seller shall short-close the contract and the seller shall forfeit the entire Performance Guarantee amount.

14.0 Payment Terms : The buyer shall remit in advance 100% value of the material along with

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

covered for one shipment calculated based on the highest domestic price or the Delivery Order price whichever is higher (Annexure-B 2).

b) BG for Sales Tax : This BG covers the value of Sales Tax payable without any concessional form on the quantity for one shipment calculated based on the highest domestic price prevailing or the Delivery Order price whichever is higher (Annexure-B 3).

c) BG for Differential Price : This BG covers the value difference for the shipment quantity based on the price for which DO is to be issued and the highest domestic price of RINL/VSP ( Annexure –B 4).

15.0 Penalties for short lifting:

15.1 Monthly Penalties: The buyer shall lift a minimum of 75% monthly quantity (i.e.{ contracted quantity / contract period in months} X 75%). In case the BUYER fails to lift the 75% of the monthly quantity in a month, a penalty of Rs.25/- Per MT shall be payabe by the BUYER for the difference between the 75% of the monthly quantity and the actual quantity lifted during the month (i.e.{75% of monthly contracted quantity – actual lifted Quantity} X Rs.25).

15.2 Penalties recovered shall not be refunded even after fulfilment of Annual quantities. 15.3 However, at the end of the year the clauses detailed at 13.1 to 13.2 shall be applicable. 15.4 In order to fulfill the annual contract conditions, the buyer will be allowed to make up back

logs arising out of monthly short fails, if any, through fresh slag quantities and / or dump yard slag quantities depending on the availability. The decision of In Charge in this regard shall be final and no claims whatsoever ever shall be entertained on the aspect.


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ANALYSIS REPORT/TEST CERTIFICATE: Test Certificate shall be furnished by the SELLER is final and binding on the BUYER.

16.0 RIGHT OF REJECTION: SELLER will test the material being dispatched generally as per their Standard procedure and the Test Certificate furnished by the SELLER is final and binding on the BUYER. However, the BUYER shall have a right to reject Steel Products, if the same does not conform to BUYER’s required specifications, provided such rejection is exercised before the material is loaded into the trucks/wagons at the premises of the SELLER. No right of rejection whatsoever shall be entertained after the commencement of loading. No dispute about quality etc. will be allowed / entertained after the commencement of loading.

17.0 WEIGHMENT:

17.1 The SELLER shall provide necessary facilities at their premises for weighment of the material loaded into wagons/trucks. Weight recorded at the SELLER’s weighbridge is final and binding on the buyer and no dispute regarding the same shall be entertained once the material leaves SELLER’S premises.

17.2 In case dispatches are made by rail, SELLER will arrange RRs on freight paid basis. The buyer has to pay railway freight in advance for indent the rake. Railways issue RRs as per their practice in vogue. At present RRs are issued as per the weight determined at Railway weighbridge. Any change in practice by railways shall automatically be applicable. Freight charges shall be payable by the BUYER as per the weight recorded in the RRs.

17.3 The BUYER shall ensure loading of the material up to the carrying capacity of the

wagons/trucks and in case any wagon/truck is under loaded or over loaded, the applicable charges, if any, shall be to the account of the BUYER.

17.4 Invoices will be raised as per the weight recorded at SELLER’s weighbridge. 18.0 PAYMENT:

18.1 The BUYER shall pay in advance 100 % value of the material along with taxes and duties

etc., like Excise Duty, Sales Tax (VAT) etc., by way of RTGS/DD/Pay Order/Banker’s Cheque or as per agreed terms. Cheque drawn in favour of Rashtriya Ispat Nigam Ltd., payable at Visakhapatnam unless it is specified otherwise, against offer letter, for issue of Delivery Order. In case of LC, negotiable document shall be an offer letter.

18.2 In case the delivery of material is by Rail, necessary freight amount will also be paid in advance by the BUYER along with material cost.

18.3 The amount so collected will be adjusted against the invoices for the actual quantity delivered.


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19.0 SAFETY CLAUSE:

19.1 The BUYER shall comply with all Safety and Security Regulations while lifting the material from the premises of SELLER as applicable from time to time. SELLER will have no liability towards any claim regarding injury to the employees of/workers engaged by the BUYER or any damage to any of their machines/equipments etc. BUYER shall keep SELLER indemnified against any such claim/claims.

19.2 The trucks shall be covered with tarpaulin suitably to avoid spillage of material, if required, on

the roads (inside and outside the plant) during the transportation. Cost incurred by SELLER due to non-compliance of the above provision shall be recovered from the BUYER.

19.3 A penalty of Rs 1000/- per event (subject to revision, if necessary) will be levied on receipt of

any communication from Safety Engineering Department of SELLER, regarding violation of safety rules by the BUYER’s personnel, equipment and trucks etc.

20.0 FORECLOSURE:

20.1 In case, the BUYER fails to perform as per the conditions stipulated in this agreement, the

agreement shall be foreclosed. The decision of the SELLER regarding this will be final and binding. The amount available after adjusting the damages and other dues, if any, shall be returned to the BUYER.

20.2 In case the SELLER wishes to foreclose the contract in the interest of the company at any

point of time, during the contract period, a notice of one week shall be given by the SELLER to the BUYER and after the notice period, the agreement shall be foreclosed. In that case, the amount available after adjusting the damages and all other dues, if any, shall be returned to the BUYER. During the notice period, the BUYER shall perform all their obligations.

21.0 JURISDICTION CLAUSE:

It is hereby agreed between the parties that the courts at Visakhapatnam shall have the exclusive jurisdiction in respect of all disputes arising under or out of this agreement.

22.0 FORCE MAJEURE:

22.1 Notwithstanding anything contained in this agreement, the obligation of the SELLER to supply and deliver and the BUYER to purchase and take delivery shall remain suspended and neither of them shall be entitled to claim compensation from the other for any loss or damage caused by such suspension, whether total or partial, if and to the extent that either the SELLER or the BUYER is rendered unable to perform its obligations under this agreement by reasons of restraints by Govt., war, blockade, revolution, insurrection, strikes, acts of God, plague or other epidemics, destruction of material by flood, fire or other natural calamity interfering with the production, loading or discharge. Provided that the Operation of the contract shall be resumed as soon as any such condition or circumstances are removed.


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Provided further that at all times this clause shall not be construed as releasing the SELLER and/or the BUYER from any liability in respect of willful refusal to effect or receive supplies or willful default or neglect in doing so.

22.2 On the occurrence of Force Majeure as above, the affected party shall give to the other, notice in writing of such occurrence with all details and supporting evidence thereof, within FIFTEEN days of such occurrence.

22.3 In case of Force Majeure conditions prevail for the period in excess of NINETY days; either

party shall have the option to cancel this agreement, by notice in writing to other party in respect of the undelivered quantity of the materials without, however, any right against or being responsible to the other party for such cancellations. Upon such cancellation, the SELLER shall return the balance amount available after adjusting the outstanding damages and all other dues, if any, till the date of such notice.

23.0 ARBITRATION:

23.1 If at any time, any question, dispute or difference whatsoever arises between the SELLER and

the BUYER upon or in relation to or in connection with the contract/agreement, either party may forthwith notify the other in writing of the existence of such question, dispute or difference and the same shall be referred to the adjudication of sole arbitrator to be nominated by the Chairman-cum-Managing Director, RINL, Visakhapatnam Steel Plant. In case designation of the Chairman-cum-Managing Director is changed or his office is abolished, the officer who for the time being is entrusted with the functions of the Chairman-cum-Managing Director, RINL, Visakhapatnam Steel Plant by whatsoever designation such officer is called, shall nominate the sole arbitrator to adjudicate upon the disputes and there shall be no objection to any such nomination / appointment on the ground that the sole arbitrator is an officer / employee of the Visakhapatnam Steel Plant.

23.2 The decision of the sole Arbitrator shall be final and binding on both the parties to this

Agreement. The arbitration proceedings shall be governed by the Arbitration and Conciliation Act 1996 and rules framed there under. The venue of Arbitration shall be Visakhapatnam only.

23.3 The Arbitrator’s fee, expenses and all other costs and other expenses relating to the holding of arbitration shall be borne by both the parties equally. However, the fees and expenses of the Advocates and expenses relating to the presentation of witness shall be borne by the respective parties. Should the Arbitrator give a specific award in respect of costs then it would prevail.

24.0 ASSIGNMENTS:

The BUYER/SELLER shall not assign their rights and obligations under the terms of this agreement to any party other than its legal successor without the written consent of the other party.

25.0 ENTIRE AGREEMENT:

The terms and conditions herein contained shall constitute the entire Agreement and understanding between the parties hereto and shall supersede all other communications which


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were made prior to signing of this Agreement, whether written or oral, between the parties hereto with respect to the subject matter hereof.

26.0 AMENDMENT OF AGREEMENT: Any clause which is hindering the operation of the agreement or due to any changes in ground situation at either end, can be reviewed. Any amendment to this agreement shall be made in writing by both parties hereto and specifically stated to be an amendment to this agreement.

27.0 WAIVER: 27.1 Non-enforcement by either party of any of the provisions of this Agreement shall not operate

or constitute as a waiver of the provision itself or any subsequent breach thereof. 27.2 The validity of the Agreement shall not be affected should one or more of its stipulations be or

become legally invalid. In such a case, the parties shall negotiate in good faith to replace the invalid clause by a stipulation which is in accordance with the applicable law and which shall be as close as possible to the party’s intent.

27.3 Should the fulfillment of this contract be rendered impossible by any Executive or Legislation Act done by or on behalf of the government, this contract or any unfulfilled part thereof shall be cancelled without any financial liabilities whatever, to either party.

IN WITNESS WHEREOF the parties hereto have executed and signed this agreement on …… day of ………….., 2014. Executed for and on behalf of Visakhapatnam Steel Plant, RASHTRIYA ISPAT NIGAM LIMITED by NAME: SIGNATURE:____________

________________ Witness: SIGNATURE:____________

1. ______________ SIGNATURE:____________

2. ______________ Executed for and on behalf of M/s ---------------------------------------------------------- Name: ------------------------ Designation

M/s SIGNATURE:______________ Witness: 1) ______________________ SIGNATURE: ______________

2) ______________________ SIGNATURE: _______________


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Annexure-B 1

PROFORMA BG FOR PERFORMANCE GUARANTEE NAME AND ADDRESS OF THE BANK BG ISSUED ON BEHALF OF: LIMIT OF LIABILITY: DATE OF EXPIRY: BG CLAIM PERIOD: AGREEMENT NO & DATE: FOR: MERCHANT EXPORT OF BFG SLAG (FRESH SLAG) TO RASHTRIYA ISPAT NIGAM LIMITED VISAKHAPATNAM STEEL PLANT VISAKHAPATNAM-530031 Dear Sirs, In consideration of M/s.Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant, a Company incorporated under the Company’s Act, 1956, wholly owned by Government of India having its registered office at Administrative Building, “Visakhapatnam -530031, AP (hereinafter referred to as ‘the Seller’) having agreed to accept BG of Rs…………… of M/s……… (hereinafter called as ‘Buyer’) under the terms and conditions of agreement No………. dt………….. for ………. months for Merchant Export of BFG Slag (Fresh Slag) on comprehensive job basis and as per agreement dt…………. (hereinafter referred to as the said ‘contract’) for due performance/fulfillment of all the terms and conditions contained in the said contract, ……………………… (hereinafter called as said ‘Bank’) hereby covenant and agree with you as under: 1) We undertake to indemnify you and keep you indemnified from any loss from time to time to

the extent of Rs……….. suffered by or that may be caused to ‘or’ suffered by you by reason of any breach or any breaches on the part of the Buyer of any of the terms and conditions contained in the said contract and in the event the Buyer shall make any defaults in carrying out lifting of BFG Slag (Fresh Slag) under the said contract or otherwise in the observance and performance of any of the terms and conditions relating thereto, we shall forthwith without any protest or demur pay to you such sum or sums not exceeding in total the said sum of Rs..………... as may be claimed by you as your losses and / or damages, cost, charges or expenses by reasons of such default/defaults on the part of the Buyer.

2) Notwithstanding anything to the contrary, your decision as to whether the Buyer has made any

such default or defaults and the amount or amounts which you are entitled by reason thereof will be binding on us we shall not be entitled to ask you to establish your claim or claims under this guarantee but will pay the same on demand without objections.


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3) The seller shall have the fullest liberty to claim payment of the amount or amounts from time

to time under this guarantee, subject to the ceiling limit of Rs……………. as referred to above and this guarantee shall not become invalid or in fructuous because of the partial demand made by the seller upon us on payment under the circumstances stipulated herein above and this guarantee shall hold good in favour of the Seller to the extent of the balance amount covered under this guarantee.

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

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

5) You will have the fullest liberty without our consent and without affecting this guarantee from

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

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

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

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

8) Subject to the maximum limit of our liability as aforesaid this guarantee will cover all your claim or claims against the Buyer from time to time arising out of or in relation to the said contract and in respect of which a demand or notice in writing is received by us.

9) This guarantee and the powers and provisions herein contained are in addition to and not by way of limitation of or substitution of any other guarantee or guarantees hereto given to you by us (whether jointly with other or alone) and now existing uncancelled and that this guarantee is not intended to and shall not revoke or limit such guarantee or guarantees.


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10) This guarantee shall not be effected by any change in the constitution of the Buyer or us nor shall it be affected by any change in your constitution or by any amalgamations or absorption or reconstruction thereof or therewith but will ensure for and be available to and enforceable by the absorbing or amalgamated reconstructed company or concern.

11) This guarantee during its currency shall not be revoked by us except with your previous consent in writing.

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

Not withstanding anything contained herein above:

a) Our liability under this guarantee shall not exceed Rs……………… b) The BG shall be valid upto …………………… (date) c) We are liable to pay the guaranteed amount or any part thereof under this BG only if a written

claim or demand is made by the Seller on or before ………….. (date) 13) We (mention the name of bank), hereby agree that any claim due and arising under this

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

Dated ………….. day of ……..2015

Yours faithfully,


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Annexure-B 2 PROFORMA BG FOR Excise Duty @ 12.36%

NAME AND ADDRESS OF THE BANK: BG ISSUED ON BEHALF OF: LIMIT OF LIABILITY: DATE OF EXPIRY: BG CLAIM PERIOD: AGREEMENT NO. & DATE: TO RASHTRIYA ISPATNIGAM LIMITED VISAKHPATNAM STEEL PLANT VISAKHAPATNAM – 530031 INDIA Dear Sirs, In consideration of M/s Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant, Visakhapatnam (herein after called “the seller”) having agreed to enter into agreement with ________________________ under terms and conditions of agreement No__________ Dt._________ (herein after called as said agreement) made between M/s Rashtriya Ispat Nigam Limited and M/s ________________ (herein after referred to as “Buyer”) for sale of Blast Furnace Granulated Slag (Fresh Slag) in bulk on production of a BG for Rs.____________we, __________________________(Name of the Bank), do hereby under take to pay to Seller an amount not exceeding Rs.____________ against the Excise Duty (12.36 %) on the highest domestic price or DO price which ever is higher for the quantity lifted from the plant, on violation in exporting the material as indicated in the said agreement with respect to offer letters issued by the Seller. 2. We,______________________ (Name of the Bank) do hereby undertake to pay the amounts

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

We______________________ (Name of the Bank), further agree that the guarantee herein contained shall remain in full force and effect during the period that would be taken for the performance of the said agreement and that it shall continue to be enforceable till all the dues of the seller under or by virtue of the said agreement has been fully paid and its claims


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

3. We_______________________ (Name of the Bank), further agree with the seller that the

seller shall have the fullest liberty without our consent and without affecting in any manner our obligations here under to vary any of the terms and conditions of the said agreement or to extend time of performance by the said buyer from time to time or to postpone for any time or from time to time any of the powers exercisable by the seller against the said buyer and to forbear or enforce any of the terms and conditions relating to the said agreement and we shall not be reveled from our liability by reason of any such variation, or extension being granted to the buyer or for any forbearance, act or omission on the part of the seller or any indulgence by the seller to the said buyer or by any such matter or thing what so ever which under the law relating to sureties would, but for this provision have effect of so relieving us.

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

5. It shall not be necessary for you to proceed against the Buyer before proceeding against us and

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

6. This guarantee shall not be affected by any change in the constitution of the buyer or us nor

shall it be affected by any change in your constitution by any amalgamation or absorption or reconstruction thereof or therewith but will ensure for and be available to and enforceable by the absorbing or amalgamated reconstructed seller or concern.

7. We _____________________ (Name of the Bank), lastly undertake not to revoke this

guarantee during its currency except with the previous consent of the sellers in writing. 8. Notwithstanding anything contained herein above, our liability under this guarantee is

restricted to Rs.___________. This guarantee will remain in force upto _________ date). 9. We are liable to pay the guaranteed amount or any part thereof under this BG only and only if

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


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Notwithstanding anything contained herein above: 1. Our liability under this guarantee shall not exceed Rs.__________. 2. The BG shall be valid upto _________(date). 3. We are liable to pay the guaranteed amount or any part thereof under this BG only if a

written claim or demand is made by the Company on or before _________(date). 10. We (mentioned the name of bank), hereby agree that any claim due and arising under this

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

Dated -------------------------day of -------------- 2015

Yours faithfully


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Annexure-B 3 PROFORMA BG FOR Sales Tax @ 5%

NAME AND ADDRESS OF THE BANK: BG ISSUED ON BEHALF OF: LIMIT OF LIABILITY: DATE OF EXPIRY: BG CLAIM PERIOD: AGREEMENT NO. & DATE: TO RASHTRIYA ISPATNIGAM LIMITED VISAKHPATNAM STEEL PLANT VISAKHAPATNAM – 530031 INDIA Dear Sirs, In consideration of M/s Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant (herein after called “the seller”) having agreed to enter into agreement with ________________________ under the terms and conditions of agreement No__________ Dt._________ ( herein after called the said ‘agreement) made between M/s Rashtriya Ispat Nigam Limited and M/s ________________ ( herein after referred to as “Buyer”) for sale of Blast Furnace Granulated Slag (Fresh Slag) in bulk on production of a BG for Rs.____________we, __________________________(Name of the Bank), do hereby under take to pay to Seller an amount not exceeding Rs.____________ against the Sales Tax (5%) on the highest domestic price or DO price which ever is higher for the quantity lifted from the plant, on violation in exporting the material as indicated in the said agreement with respect to offer letters issued by the Seller. 2. We,______________________ (Name of the Bank) do hereby undertake to pay the amounts

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

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

contained shall remain in full force and effect during the period that would be taken for the performance of the said agreement and that it shall continue to be enforceable till all the dues of the seller under or by virtue of the said agreement has been fully paid and its claims


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

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

seller shall have the fullest liberty without our consent and without affecting in any manner our obligations here under to vary any of the terms and conditions of the said agreement or to extend time of performance by the said buyer from time to time or to postpone for any time or from time to time any of the powers exercisable by the seller against the said buyer and to forbear or enforce any of the terms and conditions relating to the said agreement and we shall not be reveled from our liability by reason of any such variation, or extension being granted to the buyer or for any forbearance, act or omission on the part of the seller or any indulgence by the seller to the said buyer or by any such matter or thing what so ever which under the law relating to sureties would, but for this provision have effect of so relieving us.

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


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

7. This guarantee shall not be affected by any change in the constitution of the buyer or us nor

shall it be affected by any change in your constitution by any amalgamation or absorption or reconstruction thereof or therewith but will ensure for and be available to and enforceable by the absorbing or amalgamated reconstructed seller or concern.

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

guarantee during its currency except with the previous consent of the sellers in writing. 9. Notwithstanding anything contained herein above, our liability under this guarantee is

restricted to Rs.___________. This guarantee will remain in force upto _________ date). 10. We are liable to pay the guaranteed amount or any part thereof under this BG only and only if

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


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Notwithstanding any thing contained herein above:

a) Our liability under this guarantee shall not exceed Rs.__________. b) The BG shall be valid upto _________(date). c) We are liable to pay the guaranteed amount or any part thereof under this BG only if a written

claim or demand is made by the Company on or before _________(date). 11. We (mentioned the name of bank), hereby agree that any claim due and arising under this

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

Dated -------------------------day of -------------- 2015

Yours faithfully


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Annexure-B 4

PROFORMA BG FOR DIFFERENTIAL PRICE (Highest Domestic Price minus Merchant Export price)

NAME AND ADDRESS OF THE BANK BG ISSUED ON BEHALF OF: LIMIT OF LIABILITY: DATE OF EXPIRY: BG CLAIM PERIOD: AGREEMENT NO & DATE: FOR: MERCHANT EXPORT OF BFG SLAG(FRESH SLAG) TO RASHTRIYA ISPAT NIGAM LIMITED VISAKHAPATNAM STEEL PLANT VISAKHAPATNAM-530031 INDIA Dear Sirs, In consideration of M/s.Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant, Visakhaptnam (hereinafter called ‘the Seller’) having agreed to enter into agreement with ……………….. under the terms and conditions of agreement No…… dt…….. (hereinafter called the said ‘agreement’) made between M/s.Rashtriya Ispat Nigam Limited and M/s……………………… (hereinafter referred to as ‘Buyer’) for sale of Blast Furnace Granulated Slag (Fresh Slag) in bulk on production of a BG for Rs………... we, ………………… (Name of the Bank), do hereby undertake to pay to Seller an amount not exceeding Rs……… against the differential amount between the highest domestic price of the product and the export price of the product referred to in the agreement for the quantity lifted from the Plant, on violation in exporting the material as indicated in the said agreement with respect to offer letters issued by the Seller. 2. We, ……………….. (Name of the Bank) do hereby undertake to pay the amounts due and

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


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3. We, …………… (Name of the Bank), further agrees 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 Seller under or by virtue of the said agreement has been fully paid and its claims satisfied or discharged provided always this guarantee shall in no event remain in force after ………. (date).

4. We, ………. (Name of the Bank), further agree with the Seller that the Seller shall have the

fullest liberty without our consent and without affecting in any manner our obligations hereunder to vary any of the terms and conditions of the said agreement or to extend time of performance by the said Buyer from time to time or to postpone for any time or from time to time any of the powers exercisable by the Seller against the said Buyer and to forbear or enforce any of the terms and conditions relating to the said agreement and we shall not be relieved from our liability by reason of any such variation, or extension being granted to the Buyer or for any forbearance, act or omission on the part of the Seller or any indulgence by the Seller to the Buyer 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.

5. In order to give full effect to the guarantee herein contained you shall be entitled to act as if

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


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

7. This guarantee shall not be affected by any change in the constitution of the Buyer or us nor

shall it be affected by any change in your constitution by any amalgamation or absorption or reconstruction thereof or therewith but will ensure for and be available to and enforceable by the absorbing or amalgamated reconstructed Seller or concern.

8. We, ………….. (Name of the Bank), lastly undertake not to revoke this guarantee during its

currency except with the previous consent of the Seller in writing. 9. Notwithstanding anything contained herein above, our liability under this guarantee is

restricted to Rs…………. This guarantee will remain in force upto …….. (date). 10. We are liable to pay the guaranteed amount or any part thereof under this BG only and only if

a written claim or demand is made by you on or before ………….. (date), with claim period of 6 months, i.e……………. (date).


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Notwithstanding anything contained herein above :

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

claim or demand is made by the Company on or before ………. (date). 11. We, …………… (Name of the Bank), hereby agree that any claim due and arising under this

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

Dated ……….. day of …………. 2015

Yours faithfully,


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INTEGRITY PACT

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

And

…………………………………………………………………………………. hereinafter referred to as “The Bidder/Contractor”

Preamble

The Principal intends to award, under laid down organizational procedures, a contract for Export Sales of NUT COKE against NIT NO. RINL/VSP/ITD//2014-15/BFG SLAG (FRESH SLAG)/NIT 26 DATED 29/12/2014. 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.

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


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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 e foreign supplier/contract Agency, if any. Further details, as mentioned in the Guidelines on Indian Agents of Foreign “Suppliers/contract agencies”, shall be disclosed by the Bidder(s)/Contractor(s) wherever applicable. Further, as mentioned in the Guidelines, all the payments made to the Indian agent(s)/representative(s) have to be in Indian Rupees only.

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

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

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

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

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

(2) If the Bidder(s)/Contractor(s), before award of contract or after award of contract has committed a transgression through a violation of Section 2 above or in any other form such as


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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


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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.

(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


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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.

(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.


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

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

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

_______________________ _____________________

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

(Office Seal) (Office Seal)

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

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

(Name & Address)

_____________________________

_____________________________

_____________________________

Witness 2:

(Name & Address)

_____________________________

_____________________________

_____________________________


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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 alongwith 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/alongwith their offers:

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


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

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

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

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

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

4.1 Failure to furnish correct information in detail, as called for in para 2.0 and/or 3.0 above will render the bid concerned liable for rejection or in the event of materialization of contract; the same is liable for termination by RINL. Besides this, other actions like banning business dealings with RINL, payment of a named sum etc., may also follow.

Note : The following persons have been appointed as Independent External Monitors(IEMs) to oversee the implementation of 'Integrity Pact' in RINL.

1. Sri V Velayutham, Ex.DG (RD)&SS ] (for details please see our website 2. Sri Venugopal K Nair, IPS Retired ] www.vizagsteel.com)

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RINL/VSP/ITD/2014-15/BFG SLAG(FRESH SLAG)/NIT 26 DATED … Slag NIT 2… · Website: SUB: NOTICE...

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Transcript of RINL/VSP/ITD/2014-15/BFG SLAG(FRESH SLAG)/NIT 26 DATED … Slag NIT 2… · Website: SUB: NOTICE...