9257ggbs corrigendum

7/31/2019 9257GGBS Corrigendum

1/22

RASHTRIYA ISPAT NIGAM LIMITED

Visakhapatnam Steel Plant

MM Department Vendor Development Cell3rd Floor, Main Admin. Building

Tel: 91-891-2742154, Fax:+91-891-2518753/756e-mail: [email protected]

Corrigendum to Open Tender Notice No: VSP/VDC/1.0

Corrigendum to Open Tender Notification to Setup Units for Grinding of Granulated BlastFurnace Slag (GGBS)

RINL, VSP intends to tie up with Grinding Units for making Ground Granulated Blast

Furnace Slag (GGBS), using granulated B.F Slag of the plant produced after expansion.

Entrepreneurs desirous of establishing GGBS Units (B.F Slag grinding only) and havingability to make the product, are requested to submit the tender quotation in the prescribedformat for our evaluation. The detailed Tender Specification is given below.

Last date for Submission of the Tender extended to : 14/08/2009 upto 10.00am(with credentials/ supporting documents)

Contact Person : Sri B Murali Mohan, DGM (MM)-VDC & MISTel: +91-891-2742154

- Executive Director(MM)


2/22

TENDER SPECIFICATION FOR TYING UP SLAG PRODUCED AFTER EXPANSION WITHGRINDING UNITS OF GRANULATED BLAST FURNACE SLAG (GGBS)

(TENDER NO: VSP/VDC/1.0)

Rashtriya Ispat Nigam Limited, a Government of India PSU, is operating Visakhapatnam Steel Plant (VSP) at

Visakhapatnam with a liquid steel production capacity of 3.0 Million Tons per annum. VSP is undertaking

capacity expansion to the extent of 6.3 Million Tons per annum of liquid steel, for which an additional Blast

Furnace is going to be installed.

This tender is for reaching an agreement for sale of approximately 8 Lakh tons of granulated blast furnace

slag with the tenderer(s), who would setup grinding units equipped to produce ground granulated blast

furnace slag.

1.0 OBJECTIVE : - The objective of this tender is to tie up sale of granulated blast furnace slag(GBFS) from the

first expansion project of RINL. The essence of the contract would be lifting of GBFS regularly and uniformly by the

GGBS units, so that the same facilitates continuous production without any interruption. The successful tendere is to

setup 2 grinding units with a capacity to grind 4 lakhs of granulated slag per unit per annum. The granulated slag is

supplied by RINL as per the terms set out here under.

2.0 The indicative Chemical Composition of Granulated BF Slag is :

CaO 30-38%SiO2 30-40%Al2O3 15-22%Mgo 8-11%FeO 5% maxMnO 2% maxMoisture 12% max

3.0 QUANTITY OFFERED :

Quantity available after expansion (6.3 million T stage) of existing facilities of VSP would be approximately 8 lakhs tonsper annum. It is envisaged to tie up this quantity with 2 Nos. of GGBS Units each of 4 lakh Tons per annum capacity.One tenderer or two tenderers separately, could set up the two GGBS Units.

The tenderer who quotes highest basic price for the slag in Rs. per MT for the first year would be considered for awardof this tender. In case the highest bidder has quoted for only one unit then the tenderers, who have stood in thepositions of H2,H3 onwards, would be asked, in the order of H2,H3 etc, to match H1 price for award of the tender forsecond unit. In case H1 tenderer has quoted for only one unit and tenderers at H2,H3 onwards do not match H1 price,the H1 tenderer would be offered to set up 2 units of GGBF Slag.

RINL can select one tenderer if he offers for setting up of 2 units of GGBS each of 4 Lakh TPA capacity or twoseparate tenderers who have quoted for one unit each of 4 Lakh TPA of GGBS capacity


3/22

4.0 PERIOD OF CONTRACT : The period of contract would be for 33 years from the date of signing of the

agreement

5.0 SITE LOCATION :

5.1 The GGBS Unit could be set up on the land being offered by RINL. RINL offers approximately 15 acres foreach unit. The location and layout of the land offered by RINL is indicated at the drawing attached. For inspection ofthe land the tenderer may contact Vendor Development Cell by fixing an appointment in advance. The terms andconditions including premium for allotment of land is at Annexure-1

5.2 The tenderers are free to set up the proposed units elsewhere also. However, the details of the land where theproposed GGBS unit is to be set up has to be indicated and the tie up with regard to ownership/lease of such land hasto be mentioned in the offer.

The tenderer should have land to the extent of 15 acres in single piece either owned by him or through a

Registered lease deed.

Copy of the Title Deed (Registered sale deed/revenue record) in the name of the tenderer/ registered leasedeed from the land owner along with a copy of title deed in the name of the land owner shall be submitted inthis regard.

In case the land is owned by more than one person, the registered lease deed should be submitted from all theland owners or from their attorney. In case any permission is required to be obtained for lease of land as perthe requirements of State Government, a copy of such permission should also be submitted along with thetender.

Copy of the land utilization certificate from competent authorities of State Government based on which the landproposed can be used for setting up of GGBS unit may be submitted. Approval of plan for proposedconstruction in the land should be obtained by successful tenderer after acceptance of tender.

The tenderer should be in a position to produce originals of all the above documents whenever called for. If itcomes to the notice of RINL/VSP at any stage right from request for tender document that any of thecertificates/documents submitted by tenderer is found to be false/fake/doctored, they shall be debarred fromparticipation in all RINL tenders for a period of 5 years including termination of contract, if awarded. EMD,Security Deposit etc, if any shall be forfeited.

6.0 ALLOCATION OF POWER AND WATER: - RINL will not be in a position to allocate power and water.

Tenderer shall make their own arrangements for power and water.

7.0 MINIMUM OFF TAKE AND PENALITY :

The minimum quantity of GBFS to be purchased and lifted by GGBS Units would be to the tune of 4 lakh MT with (+/-)10% per annum. The successful tenderer shall commit buying and lifting of 4 lakh MT per annum of GBFS . Thelifting would be uniform on monthly basis.

RINL would have option to allocate the GBFS either from freshly generated slag or from the accumulated stock at SlagDump Yard as per availability. However, the allocation of GBFS from dump yard would not be more than 20% permonth. The party shall deploy required number of trucks/trailers to lift GBFS from VSP site. The loading of freshlygenerated GBFS in the trucks/trailers would be done by VSP to lift the GBFS from the BF Slag Storage yard near Pig


4/22

Casting Machine. The successful tenderer however, would have to make their own loading arrangement for lifting ofthe GBFS from the dump yard near TPP for which a rebate of Rs. 15/- per Ton would be applicable.

In case for some reason the tenderer is not in a position to lift 33,333 MT (+/-) 10% of GBFS per month uniformly thenRINL would have an option to charge penalty on the short lifted quantity from GGBS unit.

The penalty on the short lifted quantity would be levied as follows:-

(i) if the short lifted quantity has been shifted from BF storage yard to slag dump yard or any other place,then the expenditure incurred on shifting would be levied. In addition to this a penalty of Rs. 15/- perMT due to drop in value on the quantity shifted would be levied.

(ii) In case the short lifted quantity is sold to the alternate buyers, then the penalty would be to the extentof reduction in realization on sale of short lifted quantity (or) Rs.15/- pmt whichever is higher.

(iii)In case a part of the short lifted quantity is sold to the alternate buyers and the balance quantity isshifted to slag dump yard or to any other place, the penalty would be determined as per (i) & (ii) above.

(iv)In all cases the minimum penalty on short lifted quantity would be Rs.15/- pmt.

8.0 PRICING MECHANISM:

The tenderer shall quote the firm price for the slag in Rs. Per MT for the first year of lifting. The price shall be firm forthe first year of lifting. The price shall be exclusive of central excise duty and sales tax. All taxes & duties shall be paidextra by the tenderer.

The price for the subsequent year would be decided on calendar quarterly basis. For this purpose Fifty per cent (50%)price would be based on the Spot price fixed by Marketing department and the remaining Fifty percent (50%) of theprice component would be based on the variation of RBI Index for Cement prices prevailing at the month prior toreview of revision. This component of the price would be determined as per the formula given below.

(a) Variable Price :

RBI wholesale price Index for Cement price prevailing at the month prior to review of revision x Original Contract Price

RBI wholesale price Index for Cement price for the month of tender opening date (TOD)

Spot Price :

The spot price would be as fixed by the marketing department valid for the particular Quarter. The prices asmentioned above would be revised every calendar quarter as per the above formula. Revision of pricing and formulacan be done once in every 5 years to take care of market changes by RINL

Revised Contract Price (excluding all taxes) in Rs/MT = Variable Price + Spot Prices of VSP

2Price bid: The price for Granulated BF Slag and quantity shall be quoted in the price schedule format at Annexure-

2(A).


5/22

9.0 SELECTION CRITERIA:

The tenderer would be required to submit his bid in two parts. First part would consist of technical, commercialconditions and the second part Price bid. The documents comprising technical and commercial bid should be kept in aseparate envelope, super scribed clearly as Technical and Commercial Bid. Similarly, the Price bid should be kept inanother separate envelope clearly super scribed as Price Bid. Both these envelopes should be placed in one envelopesuperscribing on the cover (i) Name of the work (ii) Due date of opening and submitted prior to the due date fixed for

tender opening.

Technical Bid :

a) Every tenderer would have to furnish Audited Financial Documents for the past three years .

b) Bankers certificate from nationalised bank, clearly indicating the bidders ability to invest Rs. 15 crores minimum forsetting up of the GGBS Unit for grinding 4 Lakh MT of GBFS per annum from his own funds.

c) The bidders would also submit the documents pertaining to the lease/ownership of the land for setting up of this

GGBS Unit as mentioned at clause 5.2 above. Alternatively the tenderer should give confirmation that they agree totake the land on lease from RINL as per the terms and conditions given at Annexure-I.

Evaluation:

a) The price bids of the eligible tenderers who have submitted required EMD, a certificate from the bankers as perabove clause no. 9(b), documents pertaining to the land as per the above clause no:5and proof of owning a runningmanufacturing units would only be opened in the presence of tenderers who choose to be present at the time ofopening of price bids. A notice of minimum one weeks time would be given to the tenderers to be present at the timeof opening of Price bid

b) The tenderer who quotes highest basic price for the slag in Rs. per MT for the first year would be considered foraward of this tender. In case the highest bidder has quoted for only one unit then the tenderers, who have stood in thepositions of H2,H3 onwards, would be asked, in the order of H2,H3 etc, to match H1 price for award of the tender forsecond unit. In case H1 tenderer has quoted for only one unit and tenderers at H2,H3 onwards do not match H1 price,the H1 tenderer would be offered to set up 2 units of GGBF Slag.

c) RINL can select one tenderer if he offers for setting up of 2 units of GGBS each of 4 Lakh TPA capacity or twoseparate tenderers who have quoted for one unit each of 4 Lakh TPA of GGBS capacity.

Price Bid:

The Price Bid of all successfully evaluated bidders will be opened in the presence of bidders, who choose to bepresent at the time of opening of price bids.

10.0 PROJECT IMPLEMENTATION:

The successful tenderer must implement the project and start commercial production with in 12 to 18 months periodfrom the date of allotment of land and signing of the agreements with RINL, i.e. obtaining project clearances, licenses,statutory approvals, procurement of plant & machinery, civil works, erection, testing & commissioning shall becompleted with in 12 to 18 months period. The party shall deploy the necessary material handling equipment forcollection of Granulated BF Slag from the VSP Slag Yard.


6/22

The party shall submit a firm schedule for completion of each of the above activities in writing as per format,Annexure-2 ( C ) and it shall form part of the contract agreement.

10.1 The successful tenderer is solely responsible for the BF Slag he lifts from VSP. RINL is in no wayconcerned with manufacture or sale or disposal of the products of GGBS units. RINL also is not responsiblefor the quality of the products of GGBS units.

10.2 If the successful tenderer i.e. lessee of the RINL landfails to perform the contract as per the terms of theagreement, RINL reserves the right to cancel the lease agreement and take possession of the land dulyevicting the lessee as per the provisions of the lease agreement.

11.0 POLLUTION CONTROL MEASURES :

The party shall make complete arrangements for Environmental Protection as per the statutory requirements laid by

the Govt. and shall strictly comply with all the environmental laws.

a) Transportation of allotted slag from VSP to the GGBS Unit - The party shall arrange to cover the trucks/tippers

carrying BF Slag with Tarpaulin or take such other measures to avoid spillage of slag on the roads during the

transportation. The Plant safety timings should be followed and all safety measures as indicated by RINL

should be followed.

b)Handling at the grinding unit site - The party shall provide closed transport system, and full pollution control

equipment leaving no chance for dust emission.

c)Figutive Emission Controls All service roads shall be concreted, green belt shall be developed around the

plant by the successful tenderer(s)/lessees .

d)Noise Pollution Controls The plant / grinding unit shall be provided with proper ventilation, filters and other

control devices to restrict the noise pollution levels.

e)Water Pollution Control - The party shall install necessary equipment, devices so as to ensure that no effluents

/ liquid pollutants generated from the process are let out of the plant.

The party shall furnish details of the plant, equipment / facilities and pollution control measures as per format at

Annexure-2(B).

12.0 AWARD OF CONTRACT/SIGNING OF AGREEMENT:

The selected party shall enter into an agreement with RINL/VSP.

13.0 EARNEST MONEY DEPOSIT (EMD) :

A sum ofRs.37,50,000/- (Rupees Thirty Seven Lakhs and Fifty Thousand only) in the form of Bank Draft/Pay Order

drawn in favour of RASHTRIYA ISPAT NIGAM LIMITED, VISAKHAPATNAM to be submitted as Earnest Money

Deposit along with the Price Bid.

13.01 EMD shall not carry any interest.


7/22

13.02 Tenders not accompanied with EMD shall be summarily rejected.

13.03 EMD will be accepted in the form of DD/Pay Order only in Indian Rupees.

13.04 EMD of the successful tenderer will be adjusted towards performance guarantee .EMD of the unsuccessful tenderers shall be returned on finalization of the Tender.

13.05 EMD shall be forfeited if the tenderer/successful tenderer fails to comply with any of the followingconditions.

i.To Keep offer firm and valid for acceptance by RINL, Till 30.12.2009.

ii.To furnish Performance Guarantee within 15 days from the date of acceptance of the tender.

14.0 PERFORMANCE BANK GUARANTEE:

The purpose of the Performance Guarantee is to ensure that the GGBS unit would be set up by the tenderer within aperiod of 12 months from the date of entering into agreement. This period may be extended maximum up to 6 monthsby the company. In case of default, RINL would have option to encash the performance bank guarantee.

The selected party shall submit a performance BG of value of Rs.2 Crores valid till the end of first year ofsuccessful production, for due execution of the project within the stipulated period or such extended period by RINLManagement. On completion of successful production for one year, the BG shall be returned by RINL.

15.0 SECURITY DEPOSIT/ B.G:

The purpose of the security deposit is to ensure that the GGBS units lift the GBFS uniformly during the period ofcontract. For this purpose Security Deposit equivalent to the 10% value of the annual allocated GBFS quantity basedon the price of the first quarter of the year would be submitted by the GGBS units in the form of Bank Guarantee validtill the end of first year of successful production. Similarly the value of Security Deposit/BG would be determined forsubsequent years. The BG format for security deposit is at Annexure-3.

In case the successful tenderer fails to lift the agreed quantity or part there off RINL reserves the right to dispose ofsuch left out quantity in a manner as detailed at para-7 at the risk & cost of the tenderer and the deficit money if any,

shall be recovered from the tenderer either by encashment of BG and/or by any other action/mode. Decision of RINL in

this regard is final and binding.

16.0 PAYMENT FOR SLAG LIFTING:

RINL allots material on cash & carry basis for sale of slag. However, if the tenderer prefers to have credit

arrangement, same can be extended by RINL on submission of a stand by LC or BG for a maximum credit period of

one month supply. In case of default in payment the LC/ BG submitted towards the security deposit will be negotiated/

encashed and further supplies on credit terms shall be stopped / suspended.


8/22

17.0 ARBITRATION:

In case of any disputes in regard to any matter pertaining to these covenants, the matter shall be referred to the

arbitration of a sole arbitrator to be appointed by the Chairman-cum-Managing Director of the Company and the

decision of the Arbitrator so appointed shall be binding on the parties in dispute. The arbitrator shall give a reasoned

award. The provisions of Arbitration and conciliation Act 1996 and any statutory modifications thereof shall apply toany such arbitration. The venue of the arbitration shall be Visakhapatnam only.

18.0 JUSRISDICTION: The courts at Visakhapatnam shall have exclusive jurisdiction in respect of all disputesarising / under / out of this Tender / Contract.


9/22

ANNEXURE-1

LEASING OF THELEASING OF THELEASING OF THELEASING OF THE LANDLANDLANDLAND:

RINL shall allot up to 15 acres of land to the GGBS Unit with in the Companys land area for setting up the Factoryto make GGBS on the following lease terms

(I) Premium ofRs. 495 lacs per acre (Rs. 4.95 Crores) for a lease period of 33years to be paid at the time ofsigning agreement with VSP

(ii) Ground Rent : 1% of the Premium per annum(iii) Security Deposit : 2% of the Premium (for private parties)

a. The purpose of leasing the land is subject to the setting up of GGBS Plant utilizing Granulated BF Slag fromthe Companys Blast Furnaces as per the terms of the long term contract agreement.

b. The tenderer shall not utilize the leased land for any purpose other than the purpose for which it is leased.

c. The tenderer, however, has the right to plant grass and trees as per statutory requirements to maintain theaesthetic value of the land leased to it and to enjoy any incidental income from it.

d. The tenderer shall ensure that the ingress and egress to the proposed Factory will be through an independentgate provided by the Dependent unit.

e. The tenderer shall ensure that the proposed location of the Factory will not cause any damage to the existing

bunds as well as environmental safety.

f. A copy of Draft Lease Agreement is attached. (Enclosed at Annexure-A)


10/22

ANNEXURE-A

( Draft Lease Agreement )

THIS DEED OF LEASE made this _________ day of ___________ Two Thousand between Rashtriya Ispat Nigam Limited,

a Company incorporated U/s 617, of Companies Act, 1956 (Act 1 of 1956) and having its Registered Office at

Administrative Building, Visakhapatnam Steel Plant, Visakhapatnam-530031 and carrying on business at Visakhapatnam,hereafter called the Rashtriya Ispat Nigam Limited ( which expression shall unless excluded by or repugnant to the context

be deemed to include its successors and assignees) represented by

Shri..s/o..Age.. of the one part

and M/s. hereafter called the Lessee which is general power of attorney holder and acting as

agent on behalf of the Lessor Union of India (which expression shall unless excluded by or repugnant to the context be

deemed to include its/his successors, heirs, executors, administrators, representatives and permitted assigns) represented

by Shri.s/o..Age of the other part.

WITTNESSETH AS FOLLOWS:

1) In consideration of premium of Rs. _________________________________________ paid by the lessee to the

Lessor the execution of these presents (the receipt whereof the lessor doth hereby admit and acknowledge) and also in

consideration of the annual rent and covenants on the part of the lessee hereinafter reserved and contained, the lessor

hereby demises unto the lessee all that piece and parcel of land being situated in

_________________________________________ ________________________ of the lessor's area pertaining to

Visakhapatnam Steel Plant at Visakhapatnam containing by measurement an area of _____ acres be the same a little

more or less and more particularly described in the scheduled hereunder written and purpose of identification with the

dimensions and abutters thereof delineated on the map or plan hereby annexed and thereon colored/bordered together

with the right for the lessee and the workmen of the plant to be set up by the lessee on the said piece of land all persons

authorized by them to pass and repose with or without carts, carriages, motors and other means of transport by road over

and along with the road abutting the said piece of land except and reserved unto the lessor and its successors in title or its

representatives duly nominated on this, at all times hereafter, the full and free right of entry within the plant/work sheds

and the premises thereof for the purposes of inspection, verification regards the compliance of the terms and conditions of

the Lease Deed on the date and time to be mutually agreed upon.

2) To hold the same unto the Lease for the terms of 33 years from the _________ day of _________ yielding and

paying there for during the said term annual ground rent of____________________________________________ or such

other sum as may hereafter be assessed under the covenants and conditions hereafter contained clear of all deductions by

equal yearly payments on ___________ (date) at the office of the lessor at Visakhapatnam or at other place or places as

lessor may from time to time appoint in that behalf, the first of such payment to be made on the _________ day of

________.

3) That the lessee shall also during the said term pay all property taxes, or other taxes payable to the local

authority, rates and assessment charges, damages etc., and all other outgoings of any kind which are now or which may at

any time hereafter, become payable in respect of the land hereby demised and/or in respect of the buildings and

structures to be erected on the demised land as hereinafter mentioned whether the same be payable by law by the Lessor

as owner or by the Lessee or the actual occupier and the Lessee shall keep the Lessor indemnified against the same.


11/22

4) The lessee shall within a period of __________ months from the date hereof or such further time as may be

allowed in writing by the Lessor shall commence construction on the demised land of________ with necessary and

convenient buildings, godowns and other erections and structures, drains, boundary walls and fence in accordance with the

plans, elevations and specifications which are to be approved by the Lessor and in conformity with the provisions of all

statutes/rules/regulations applicable thereto and the byelaws and regulations of the local authorities and to pay all fees

and charges payable to such authorities in relation thereto.

Providing that the construction must be completed and the project/activities for which the land has been allotted started

within __________ months from the date of allotment.

Provided also that if the Lessee fails to comply with all or any of the conditions and requirements, the Lessor reserves

right to cancel the Lease and resume possession of the demised land. The Lessee shall also be liable to pay damages as

assessed and claimed by the Lessor.

5) Provided always that the Lessee shall not be entitled to any right of access of light or air to any buildings to be

erected on this said land hereby demised which would

restrict or interfere with the free use of any adjoining or neighboring land or building or any other purpose and further that

no estate or interest in the soil off the road or roads or foot paths adjacent to the said lands herein before described is or

shall be deemed to be included in the demised land herein before contained.

6) The Lessee for itself and its assigns covenants with the lessor as follows:

i) to pay the said rent yearly and other rents herein before reserved at the time and in the manner at which the same or

hereinbefore reserved and made payable without deductions or adjustments whatsoever.

ii) to pay all rates, taxes, charges including water and other service charges, duties, burdens, assessments,

outgoing and impositions, whatsoever, whether preliminary, parochial, local or otherwise which now or shall at any time

hereinafter during the said term be charged, rated, assessed and imposed upon or in respect of the land hereby demised

or the said buildings/quarters and other erections that may be erected by the lessee thereon or on the lessor or the lessee

or the occupier in respect thereof respectively.

Provided that the lessor shall have the power separately to prescribe terms and conditions in respect of supply of

electricity, water and other services which may from time to time be extended to the lessee.

iii) To pay service charges at the rate of ____________per acre per year, revisable from time to time and it shall be

binding on the lessee to make the payment as per the above, in addition to other charges.

7) That in addition to the rent and the municipal rates, taxes and assessment and all other outgoings mentioned in

Clause 6 (ii), above the lessee shall pay monthly and every month service charges for water, electricity, sanitation etc. at

such rate and in such manner as may be fixed and decided by the lessor from time to time. Directions and circulars

issued by lessor from time to time in this connection will be deemed as part of this agreement. The lessor shall be at


12/22

liberty to determine the quantity and volume of water and electricity to be sup-plied for the lessees use and in this respect

the decisions of the lessor shall be binding on the lessee. The lessee shall have no claim against the lessor for any

reduction of such supplies or non-supply thereof by the Lessor due to non-availability of the same or on account of

breakdown of machinery or damages in the supply Line or pipe or other reasons whatsoever over which the Lessor has no

control.

8) Not to sell or dispose off any earth, clay, gravel etc. from the land hereby demised, nor make any excavations

except where the same may be necessary to carry out any works in terms of land in accordance with the provisions thereof

provided that the lessee, may use for the purpose of the said works any clay, gravel or sand which it may be necessary to

excavate.

9) To pay reasonable proportion of the expense of repairing and maintaining all partition walls or partition fence

walls or fences, sewers, drains, pipes, water courses and other easements used, or to be used in common by the occupier

of the said demised premises and the occupiers of any adjoining or neighboring premises and such proportion in the case

of dispute shall be determined by the lessor for the time being, whose decision shall be final and binding upon all parties.

10) That the Lessee will not erect or build and permit to be erected or build on the demised land any messuage or

buildings otherwise than those approved by the lessor in writing and will not make any addition to or alteration of

buildings, if any, existing thereon without the prior approval in writing of the lessor, provided however it is distinctly

stipulated and agreed that no application for the grant of such permission for alteration or addition will be entertained by

the lessor unless they are satisfied that the proposed structure or building or alteration has any bearing on the purpose for

which the lessee has taken lease of the demised land and the period of lease and in this respect the decision of the lessor

shall be binding, final and conclusive.

11) Well and substantially to repair and at all times during the continuance of the term to keep in repair the said

__________________________________ to be erected on the land hereby demised and all sewere, drains and fences or

walls marked on the said land and all other buildings and erections which at any time during the said term may be upon

any part of the land hereby demised and to keep the same at all times during the said term in perfect, and sanitary order

and condition.

12) That the Lessee will permit the Lessor or its agents at all reasonable times during the subsistence of the lease to

enter upon the demised premises for the purposes of laying surface, underground or overhead drainage, sewerage, gas

and water mains, electric and telephone line and any other installations required, after giving 48 hours prior notice in

writing and in the event of any damages to the building being occasioned by the above work, the Lessor will reimburse the

lessee the cost for repair of such damage to be mutually agreed upon.

13) That the lessee will at the end of every three years of the said terms after the completion of the messuage and

buildings to be erected as aforesaid substantially repair the same and paint/white wash/distemper with at least two coats

of good oil paint/white wash/distemper all the out side and inside walls, ceiling and wooden/metal works thereon as the

case may be. All costs of and incidental to such repairs shall be borne and paid by the lessee.


13/22

14) At the expiration or sooner determination of the said term, unless the lessor shall have given notice exercising

option to purchase the same in accordance with the provisions of clause ____________ hereof to take over, the Lessee

shall remove all buildings, erections and structures with the foundations thereof and of boundary and other walls, fences,

drains, etc., on the demised land and to fill up all excavations made by the lessee for such purpose or otherwise and

replace the surface soil so as to level the demised land and if so required but not otherwise to remove all trees and shrubs

planted by the lessee and to restore the demised land to its present state and condition thereof. (except such part thereofas may be laid out as a garden as the lessor shall in writing require all those the lessee to leave in the then state and

condition thereof.)

15) At the end or other sooner determination of the said term, peacefully to yield up to the lessor the land hereby

demised with or without the said building or other buildings, and erections, fixtures and fittings as the case may be in good

and proper order and condition in accordance with the covenants herein contained.

16) Not to do or cause to be done upon the said demised premises any thing which may be to the annoyance or

disturbance of the lessor or the other lessees or tenants of the lessor or the occupier of any adjoining or neighboring

houses and not to abuse or permit said demised premises to be used for any purpose except __________________ .

17) Not to use the land for any purpose other than that for which it has been demised and not to assign, transfer,

mortgage, or sublet, or otherwise deal with, or part with possession of the said building to be erected thereon by the

lessee as aforesaid and other buildings and erections that may at any time be in or upon the said land or part thereof,

without or the lessees right, title and interest in the intended trades/business herein before mentioned, without previous

consent in writing of the lessor.

18) To pay interest on the amount of rent and other charges if any remaining unpaid after the due date of payment

thereof at the rate of 18% per annum from the due date till the date of payment is being distinctly understood that the

provisions for payment of interest as herein contained will not in any way prejudice the lessors right of re-entry or any

other rights under these presents or under the Law in respect of such default on the part of the lessee to pay any rent and

other charges on the due date.

19) The lessee shall obtain and renew in due time the trade licence and other licence, if any, from the concerned

authorities in his name. The lessee shall fully indemnify the lessor against any damage, compensation, fine etc., that may

be incurred by or levied on the lessor for any breach on the part of the lessee of any statutory regulations applicable for

running of the business and matters connected thereto.

20) The lessor hereby covenants which the lessee that the lessee on paying the rents hereby reserved and performing and

observing the covenants and agreements and/or stipulations on the part of the lessee contained in these presents shall

and may peacefully hold and possess the demised promises for the said term hereby created without any interruption by

the lessor or any person rightfully claiming through, under or in trust for it.

21) Provided always and it is hereby expressly agreed between the parties hereto as follows:-


14/22

(a) That if the rent hereby reserved shall be in arrears and remains unpaid for three months after the same shall have

become due or if any of the covenants on the Lessees part hereinbefore contained shall not be performed or observed by

Lessee then and in any of such cases this lease shall at the option of the Lessor be determined and the Lessor shall

thereupon be entitled to enter upon and take possession of the demised land with and including the messuage and

buildings erected thereon by the Lessee or any part thereof with rights to the Lessor to sue the Lessee for recovery of the

arrears of rents and/or damages for breach of any covenants by the Lessee. Upon the lease being determined for anyreason the messuage and buildings erected on the demised land by the Lessee, with all fixtures and fittings shall become

the absolute property of the lessor and the lessor may allow compensation at its sole discretion on the basis of the capital

cost of such messuage and building less depreciation. The lessor shall be entitled to retain out of the compensation

payable as above such amount as it may consider appropriate towards recovery of the arrears of rents and/or damages for

breach of any of the covenants by the Lessee.

(b) The lessor shall have and hereby retains all rights in respect of all mines and minerals, coals, oils, quarries products

and buried treasures in or upon the said and hereby demised land with full power at all times to do all acts and things

which may be necessary or thought expedient for the purpose of searching for, working, obtaining, removing and enjoying

the same provided always that the lessor shall make reasonable compensation to the Lessee for all damages directly

occasioned by the exercise of the said rights hereby reserved for any of them.

(c) The sum of Rs.___________ deposited by the Lessee with the Lessor as earnest money shall be held by the

lessor during the term of this lease as security deposit carrying no interest whatsoever and the same will be liable to

forfeiture in whole/or part for any breach on the part of the Lessee or his employee or agent, of any or more of the terms

and conditions of this lease without prejudice to any other rights of the Lessor under these presents.

(d) Any notice required to be served under or in any way in respect of this lease shall be deemed to have been sufficiently

served on the lessee if delivered to it/him by post or left addressed to it/him at or other dwelling house and/or any other

erections and structures on the said land hereby demised or at its/his last known address in India and shall be sufficiently

served on the lessor if forwarded to it/him by post or left addressed to it/him at Town Administrators Office,

Visakhapatnam Steel Plant, Visakhapatnam. A notice sent by post shall be deemed to be given at the time when in due

course of post it would be delivered at the address to which it is sent.

22) In case of any disputes in regard to any matter pertaining to these covenants, the matter shall be referred to the

arbitration of a sole arbitrator to be appointed by the Chairman-cum-Managing Director of the Company and the decision

of the Arbitrator so appointed shall be binding on the parties in dispute. The arbitrator shall give a reasoned award. The

provisions of Arbitration and conciliation Act 1996 and any statutory modifications thereof shall apply to any such

arbitration. The venue of the arbitration shall be Visakhapatnam only.

The schedule above referred to

(Description of the Land in the Lessors Township

Plot No: Situated in Sector:


15/22

Area Boundary

District : Visakhapatnam

IN WITNESS WHEREOF the parties hereto have executed these presents the day month and year first above written.

Signature & Particulars of Witnesses to the Lessors Signature:

1)

2)

Signature of the Lessor

Signature & Particulars of witnesses to the Lessees Signature:

1)

2) Signature of the Lessee

Date this ____________ day of _________ year 2006.

BETWEEN

for and on behalf of

RASHTRIYA ISPAT NIGAM LIMITED

VISAKHAPATNAM STEEL PLANT

AND


16/22

Annexure-2(A)

Ref.No.VSP/VDC/1.0/08-09/ DT :

A. Price Bid

===========================================================================

Product Price (Rs./MT)====== ============

a. Granulated Blast Furnace Slag (GBFS)from BF Slag storage yard near Pig Casting Machine Rs. _____________PMTas per the terms and conditions of tender documents.

(Quantity shall be as per Technical Bid)

(Price in words-Rupees____________________________________________________PMT)(Duties and taxes will be paid extra)

Station : Signature of the Tenderer /Date : Authorized Representative.


17/22

Annexure-2(B)

B. Schedule of Plant & Facilities

including Polution Control Facilities

SL.NO. EQUIPMENT / FACILITIES


18/22

Annexure-2(C)

C. Implementation Schedule : [ Time Period / Months]

Sl.

No.

Activity 1 2 3 4 5 6 7 8 9 10 11 12


19/22

Annexure-3

( To be executed on non-judicial stamp paper of value not less thanRs.100.00 bought in the name of the executing bank)

BANK GUARANTEE FORMAT FOR SECURITY DEPOSIT

Name and Address of the Bank :Bank Guarantee No :Date of Expiry :Limit of Liability :Ref. VSPs Order No. :For (Name of Work) :

Subject : Security Deposit

ToRashtriya Ispat Nigam Limited,Visakhapatnam Steel Plant,VISAKHAPATNAM-530 031.

In consideration of Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant, a Government Companyincorporated under the Companies Act, 1956 having its Registered Office at Main AdministrativeBuilding, Visakhapatnam - 530 031 (AP) (hereinafter called the Company) having agreed to accept thisBond towards the Security Deposit of Rs..................................................................(Rupees .only). M/s.....(hereinafter

called the Contractor) under the terms and conditions of the Agreement Letter ofacceptance No:..................... dated . for (Name ofWork).......................... ..............................................................................................................................on a comprehensive basis and as per your letter of acceptance dated _________________ (hereinafterreferred to as the said contract which expression shall in case of execution of any formal agreementbetween you and the contractor shall and include the said agreement ) covered under the said

agreement as a guarantee for the Security of the services rendered/work done/materials despatched tothe custody of the contractor in terms of the said tender as also for the due fulfilment of all the termsand conditions contained in the said agreement, on furnishing of a Bank Guarantee forRs. (Rupees...........................................................................).We..(Name of the Bank) (hereinafter referred as the said bank) do herebycovenant and agree with you as under.

1. We undertake to indemnify you and keep you indemnified from time to time to the extent ofRs..................(Rupees...................................only.) caused to or sufferedby you or that may be caused to or suffered by you by reason of any breach or breaches on the part ofthe Contractor of any of the terms and conditions contained in the said agreement and in the event theContractor shall make any defaults in carrying out any of the works under the said agreement orotherwise in the observance and performance of any of the terms and conditions relating thereto, weshall forthwith without any protest or demur pay to you such sum or sums not exceeding in total the said

sum of Rs.(Rupees.........only.) as may be claimed by you as yourlosses and/or damages, costs, charges or expenses by reason or such default/defaults on the part ofthe contractor.

2. Not with standing any thing to the contrary, your decision as to whether the Contractorhas made any such default or defaults and the amount or amounts to which you areentitled by reason thereof shall be binding on us and we shall not be entitled to ask you to establishyour claim under this Guarantee but will pay the same on demand without any objection.

3. The company shall have the fullest liberty to claim payment of the amount or amountsfrom time to time under this guarantee, subject to the ceiling limit ofRs.(Rupeesonly) as referred to aboveand this Guarantee shall not become invalid or infructuous because of the partial demands made by the

Company upon us for payment under the circumstances stipulated herein above and this Guaranteeshall hold good in favour of the Company to the extent of the balance amounts covered under thisGuarantee.


20/22

4. This Guarantee shall continue and hold good until it is released by you on the applicationby the contractor after the Contractor had discharged all its obligations under the saidcontract and produced a certificate of the due completion of the work under the said contractand submitted a No Demand Certificate.

Should it be necessary to extend this Guarantee beyond the said date on account of anyextension of time being granted by you to the Contractor under the said contract or otherwisewe undertake to extend the period of this Guarantee, and confirm to you in writing the extensionof time on your request till such time as may be required.

5. You will have the fullest liberty without our consent and without affecting this Guaranteefrom time to time to vary any of the terms and conditions of the said agreement or extendtime of performance of the Contractor or to postpone for any time or from time to time anyof your rights or powers against the contractor and either to enforce or forebear to enforce anyof the terms and conditions of the said contract and we shall not be released from our liabilityunder this guarantee by the exercise of your liberty with reference to matters aforesaid or byreason of any time being given to the contractor or any other forebearance, act or omission onyour part or any indulgence by you to the Contractor or by any variation or modification of thesaid contract/ of any other act. Matter or thing whatsoever which under the law relating tosureties would but for the provisions hereto have the effect of so releasing us from our liabilityhereunder provided always nothing herein contained will enlarge our liability herein beyond thelimit of Rs.. (Rupees..) as aforesaid or extended the period of

the Guarantee beyond the said day of.unless expressly agreed to by us inwriting.

6. This Guarantee shall not in any way be affected by your taking or varying or giving upany sureties from the Contractor or any other person, firm or company on its behalf or bythe winding up, dissolution, insolvency, reconstruction or death as the case may be, ofthe Contractor.

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

8. Subject to the maximum limit of our liability as aforesaid this Guarantee will cover all yourclaim or claims against the contractor from time to time arising out of or in relation to thesaid contract and in respect of which your demand or notice in writing is received by us.

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

10. This Guarantee shall not be affected by any change in the constitution of the Contractoror us nor shall it be affected by any change in your constitution or by any amalgamationabsorption 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 revocable by us except with your previousconsent in writing.

12. It shall not be necessary for you to proceed against the Contractor before proceedingagainst us and the guarantee herein contained shall be enforceable against us,notwithstanding any security which you may have obtained or obtain from Contractor atany time or when proceedings are taken against us hereunder be outstanding orun- realised.


21/22

13. We (mention the name of the bank) hereby agree that anyclaim due and arising under this guarantee shall be enforceable against our Banks Branch(mentioning the name & address of the branch) at Visakhapatnam and they shall honour suchdemand immediately in any case not later than next work day.

NOTWITHSTANDING ANYTHING CONTAINED HEREIN:

A) Our Liability under this Bank Guarantee shall not exceed Rs..

(Rupeesonly)

B) * This Bank Guarantee shall be valid up to

C) We are liable to pay the Guaranteed Amount or any part thereof under this BankGuarantee only and only if you serve upon us a written claim or demand on or before..(*date of expiry of Guarantee)

Dated the..day of200

SIGNATURE WITH SEAL

* Validity of BG to cover contract period + defect liability period + 6 months (claim period)


22/22