trial e-tender draft ver-3 · 1 commodity iron ore pellets – bf grade (63% fe) 2 quantity...

of 63

KIOCL LIMITED II Block, Koramangala, Bangalore - 560 034 INDIA.

Tel: 25521160 / 25530146 Fax: 25535941 Mail: [email protected]

Tender No: KIOCL/COM/PEL/DTA/1L/2019/02 date : 12/11/2019

OPEN TENDER NOTICE

SALE OF 100,000 TONS OF BF GRADE IRON ORE PELLETS

IN DOMESTIC MARKET

KIOCL LIMITED, a Govt. of India Enterprise and an Export Oriented Unit with a

production capacity of about 3.5 million tons of iron ore pellets per year is intending to

sell 1,00,000 (One Lakh) Dry Metric Tons ±10% of BF grade iron ore pellets in domestic

market with an option to make ‘Third Party Exports’.

KIOCL Limited invites sealed tenders from reputed buyers having sound financial

strength for procuring iron ore pellets.

Salient features of the tender are as below,

1 Commodity Iron Ore Pellets – BF Grade (63% Fe)

2 Quantity 1,00,000 MT ±10%

3 Delivery period Within ONE MONTH from the date of

signing the contract.

4 Last date for submission of

tender 02:00 PM (IST) on 26/11/2019

5 Date, time & venue of opening

Techno-Commercial bids

03:00 PM (IST) on 26/11/2019 at the

office of Jt. General Manager

(Commercial) KIOCL, Bangalore

6 Date and time of online

forward auction Shall be communicated separately.

Please quote price in INR. The quotes shall be submitted as per the details given at

Article 15 in Instructions to Bidders attached. Person signing the bid should be legally

authorised and empowered to sign and where required, necessary document to support

authenticity should be enclosed. All alterations or corrections shall be duly authenticated

by the person(s) signing the bid.

The Techno Commercial bids shall be opened as per the schedule provided at Sl no. 5 in

the above table. The bidder or his authorized representative may witness opening of bids

if they so wish.

Jt. General Manager (Commercial)

KUDREMUKH

mailto:[email protected]

Tender No: KIOCL/COM/PEL/DTA/1L/2019/02

of 63 (Signature of the bidder with seal and date)

Annexure - 1

Tender No: KIOCL/COM/PEL/DTA/1L/2019/02 date : 12/11/2019

TENDER FOR SALE OF 100,000 MT OF PELLETS

INSTRUCTIONS TO BIDDERS (ITB)

KIOCL intends to sell 1,00,000 (One Lakh) Dry Metric Tons ±10% of BF grade iron

ore pellets in DOMESTIC MARKET as per pellet specification given at Annexure-2

attached herewith.

1. DEFINITIONS OF TERMS

1.1. “Seller” shall mean and refer to KIOCL Limited or its Assignee / Successor.

1.2. “Bidder” or “Buyer” shall mean and refer to the party or companies submitting an

offer in response to this Notice Inviting Tender (NIT) or their Assignee /

Successor.

1.3. Dry and dry basis shall refer to the pellet dried at 105 degree centigrade.

1.4. Wet and wet basis shall refer to the pellets in their natural wet state.

1.5. "Contractual Period" shall mean the period of Five Months from the date of

signing of the contract.

1.6. “Loading Port" means New Mangalore Port at Panambur in the District of

Dakshina Kannada, Karnataka – India.

1.7. "Pellets" means agglomeration of iron ore fines into spherical shape produced by

the seller at their Plant.

1.8. "Contract" means the agreement duly executed and signed by and between

BUYER and SELLER in pursuant to the tender under deliberation.

2. LANGUAGE

Tender and supplementary technical data, etc. shall be in English language only, as

understood in India.

3. THIRD PARTY EXPORT

In the event of the successful bidder preferring to export the pellets so procured, may

do so as a ‘Third Party Exporter’. Specimen copy of the Pellet Sale Contract for DTA

sale and Third Part Exports are attached at Annexures 4 & 4A.

4. BID DOCUMENTS:

4.1. The tender documents shall comprise of the following.

4.1.1. Instructions to Bidders. Annexure- 1.

4.1.2. Pellet Specification. Annexure -2.

4.1.3. Documents / details as per Proforma for Company Profile as per Annexure-3.



Annexure - 1

4.1.4. Specimen Contract copy Annexure -4 & 4A (as applicable)

4.1.5. Blanked Price Bid Format. Annexure- 5.

4.1.6. Price Bid Format. Annexure -6.

4.1.7. Integrity pact agreement. Annexure- 7.

4.1.8. Business Rules for Online Auction Annexure-8

4.1.9. Check List. Annexure-9

4.2. Price indicated in any of the tender documents except in the price bid format at

Annexure-6 shall result in rejection of the bid.

4.3. In the second stage, technically qualified bidders will be permitted to participate in

e-auction (online forward auction)

4.4. The Bidder is expected to examine all instructions, forms, terms and specifications

in the bid documents. Failure to furnish all information as per the bid documents

or submission of a bid not substantially responsive to the bid documents in every

respect will be at the Bidder’s risk and may result in rejection of the bid.

4.5. The bidder is required to carefully examine the Terms and Conditions of tender

documents, scope of contract given in the Tender Document and fully acquaint

himself as to all conditions and matters which may in any way affect the contract

or the cost thereof. The bidder shall be deemed to have on his own and

independently obtained all necessary information for the purpose of participating

in the tender and his bid as & when accepted shall be deemed to have taken into

account all contingencies as may arise due to such information or lack of the same.

4.6. KIOCL reserves right to seek clarification on the information relevant to bid

documents submitted by the bidder.

4.7. Tender documents can be downloaded from KIOCL website www.kioclltd.in.

4.8. Tender documents should not be tampered. Bidder should not alter or remove any

page of the tender documents and should submit complete set in the manner

prescribed, duly filled in, signed, stamped and dated by authorized signatories.

Failure to comply these instructions may result in rejection of the tender.

Each page of the Tender Document shall be signed by the authorized signatory

along with seal confirming acceptance to the terms and conditions.

5. CLARIFICATION / AMENDMENT TO BID DOCUMENTS:

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

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

a prospective Bidder, modify the Bid Documents by amendment.

http://www.kioclltd.in/



Annexure - 1

5.2. The amendment will be put in the same website i.e. www.kioclltd.in and will be

binding on the bidders. BIDDERS ARE THEREFORE ADVISED TO VISIT

THE WEBSITE AT REGULAR INTERVALS.

6. COST OF BIDDING:

6.1. The Bidder shall bear all the costs associated with the preparation and

submission of its bid, and the Seller shall not be responsible or liable for these

costs, regardless of conduct or outcome of the bidding process.

7. BID CURRENCY:

7.1. Prices shall be quoted in Indian Rupees (INR) only.

8. PRICE BASIS:

8.1. The price quoted (basic price) shall be based on FOB, ST, New Mangalore

Port, basis 63% Fe basis.

9. PERIOD OF CONTRACT:

The contract will be for a period of ONE MONTH from the date of signing the

contract.

10. RESERVE PRICE

10.1. KIOCL shall fix a reserve price for sale of pellets.

11. EVALUATION:

The Seller shall evaluate the eligibility of bidders based on the following parameters:

11.1. The firm should be in operation for at least two completed financial years.

11.2. The turn over of the company during any one of the last two completed

financial years immediately preceding the date of tender shall be at least INR

20.00 Crores.

11.3. Positive net worth as per latest annual report.

11.4. Certificate from bidder’s bank regarding bidder’s satisfactory performance.

Decision of the Seller in this regard shall be final.

http://www.kioclltd.in/



Annexure - 1

12. QUANTITY:

12.1. The quantity tendered for sale is 1,00,000 (One Lakh) ±10% dry metric

tons BF Grade Iron Ore Pellets.

13. QUANTITY ALLOCATION & CONTRACT CONCLUSION:

13.1. Price will form the basis for deciding tender standing.

13.2. The highest price discovered through the tender, if accepted by seller,

shall be the Contractual Price.

13.3. If two or more bidders quote the same price, the seller, at his discretion,

based on the availability of pellets, may either allocate quantity equal to

tendered quantity to each of H1 bidder or may distribute tendered quantity

equally among H1 bidders.

13.4. If the highest bid discovered in the tender is accepted by the Seller, the H1

bidder/s has/have to agree to lift the quantity offered to him/them.

13.5. On mutual consent, additional quantity to the extent of tendered quantity

will be offered to the H1 bidder for lifting at the contracted price.

14. PERIOD OF VALIDITY:

Bids shall be valid for a period of 60 days from the date of last date for submission of

tender.

15. HOW TO QUOTE:

15.1. The bidder is required to carefully examine the Terms and Conditions of

tender document and scope of contract given in the Tender Document and

fully acquaint himself as to all conditions and matters which may in any

way affect the contract or the cost thereof. The bidder shall be deemed to

have on his own and independently obtained all necessary information for

the purpose of participating in the tender and his bid as & when accepted

shall be deemed to have taken into account all contingencies as may arise

due to such information or lack of the same.

15.2. Failure to furnish all information required as per the bid documents in all

respects will be at the Bidder’s risk and may result in rejection of the bid.

15.3. Each page of the Tender Document shall be signed by the authorized

signatory along with seal.

15.4. The bidder shall be solely responsible for all consequences arising out of

the bid submitted by him including wrongful bidding. Seller or their

representatives will not entertain any complaints / representations in this

regard.

15.5. KIOCL reserves right to seek clarification on the information relevant to

bid documents.

15.6. The decision of KIOCL in matters relating to this tender shall be final and

binding on the bidders/buyers.



Annexure - 1

16. SUBMISSION OF BID:

The tender complete in all respects conforming to the Terms & Conditions of

Instructions to the bidders & other documents of this tender shall be submitted as under:

16.1. Cover.1 – Techno Commercial Tender comprising of

16.1.1. Copy of Instructions to Bidders duly signed on each page accepting the

terms indicated in Instructions to Bidders – Annexure 1

16.1.2. Copy of Pellet Specification duly signed and stamped – Annexure 2

16.1.3. Documents / details as per proforma for Bidder Profile- Annexure 3.

16.1.4. Specimen Contract copy as applicable duly signed and stamped on each

page accepting the terms indicated in the specimen contract- Annexure 4

& 4A.

16.1.5. Duly signed Copy of the Blanked Price Bid Format (Annexure 5)

accepting the terms of price bid.

16.1.6. Integrity pact agreement duly signed and stamped on each page-Annexure

7

16.1.7. Business Rules for Online Auction as per Annexure-8 duly signed and

stamped

16.1.8. Check List as per Annexure- 9 duly filled, signed & stamped.

The Techno-Commercial tender comprising the above shall be enclosed in a separate

sealed cover duly super scribed as “COVER.1 – TECHNO-COMMERCIAL BID” and

with Tender number & Date and Date of Opening of Technical Bid.

16.2. Cover.2 – Price Bid:

16.2.1. Cover 2 shall contain only the price bid format (Annexure 6) duly filled

and signed. This cover shall be sealed and super scribed as “COVER 2 –

PRICE BID” and with Tender Number & date and Date of Technical

bid opening.

16.2.2. Price indicated in any other part of the tender documents except in the

price bid format at annexure-6 shall result in rejection of the bid.

16.3. Cover.3 – Common Outer Cover

16.3.1. Covers as per 16.1 & 16.2 above shall be kept in a common sealed outer

cover duly super scribed as "TENDER FOR SALE OF 1,00,000 MT OF

PELLETS IN DTA MARKET” and with Tender Number & Date and

Date of Opening.



Annexure – 1

16.4. Special Note:

16.4.1. Both the envelopes and its contents shall be legible, signed and seals

affixed by person or persons legally authroised and empowered to sign. A

written authorisation shall accompany the bid authorizing the person or

persons signing the Bid documents. The person or persons signing the bid

shall sign all pages of the bid. Any interlineations, erasures or overwriting

/ corrections shall be valid only if the person or persons signing the bid

attest them.

16.4.2. Offers not meeting the terms & conditions mentioned in this tender

document shall be rejected

16.4.3. Incomplete, illegible, unsigned and conditional tenders will not be

considered.

16.4.4. The bids cannot be withdrawn after the tender closing time. If the bidder

withdraws the bid after tender closing time.

16.4.5. If the outer cover is not sealed and marked as required, KIOCL will not

assume any responsibility for the bid’s misplacement or premature

opening.

16.4.6. Verbal clarifications and/or information given by the Seller, its employees

or its representatives shall not be binding on the Seller.

16.4.7. Price shall not be indicated in any other part of the tender document

except in the price bid format at annexure-6. Any violation shall

result in rejection of the bid.

16.4.8. KIOCL reserves the right to accept or reject any or all bids at its

discretion without assigning any reason & may invite revised offers.

16.4.9. The bidder shall arrange to deliver and drop the bid documents in the

"TENDER BOX" conspicuously placed at:

Commercial Department,

II Floor,

KIOCL LIMITED,

II Block, Koramangala,

BANGALORE – 560 034

KARNATAKA STATE

INDIA.

Bids submitted in any other form apart from articles 16 shall be rejected.



Annexure - 1

17. DEAD LINE FOR SUBMISSION OF BIDS

17.1.1. Bids must be received by the Seller at the address specified under article

16.4.9 no later than 14:00 hrs (IST) on 26/11/2019.

17.1.2. KIOCL, at its discretion, may extend the dead line for submission of bids.

In this regard, therefore, please visit our website www.kioclltd.com from

time to time.

18. LATE BIDS

18.1.1. The tenders received after the time & date of submission will not be

considered or opened.

19. OPENING OF TECHNO-COMMERCIAL BIDS:

19.1.1. The Techno-Commercial Tender will be opened at 15:00 hrs (IST) on

26/11/2019 at the office of the Jt. General Manager (Commercial). In the

event of the specified date of Bid opening being declared holiday for the

Seller, the Bid shall be opened at the appointed time and location on the

next working day. The bidder or his authorized representative may

witness opening of bids if they so wish. The representative shall furnish

an authorization letter.

20. SEEKING CLARIFICATION ON TECHNO- COMMERCIAL BIDS BY

KIOCL:

20.1.1. During evaluation of techno-commercial, the Seller may, at his discretion,

ask the Bidder for any clarification of his techno-commercial bid. The

request for any clarification and the response shall be in writing. However

no post bid clarification at the initiative of the bidder shall be entertained.

21. ONLINE AUCTION:

21.1.1. The schedule of the online auction shall be intimated separately.

21.1.2. All the bidders who have qualified in techno-commercial bid evaluation

will be permitted to participate in the online auction conducted by our

service provider. However, participation in the online auction is optional

and in the event of a bidder not choosing to participate in the online

auction, the price quoted by him in the price bid submitted along with

techno-commercial bid shall be considered for evaluation.

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Annexure - 1

21.1.3. The service provider will provide training and assistance to the eligible

bidders for participation in the online auction. Bidders may, in their own

interest, use their digital signature while receiving the online demo from

the service provider to avoid last minute complications.

21.1.4. Bidders shall ensure that all facilities such as availability of PCs with

internet connectivity, power backups etc. for participating in the online

auction are in put place.

21.1.5. KIOCL or the Service Provider shall not be responsible for bidder’s

failure to participate in the auction due to any reason whatsoever such as

power failure, loss of internet connectivity, communication failure,

inability to use digital signature etc.

21.1.6. Bidders must be extremely careful to avoid error in bidding (whether

typographical or otherwise) and they are fully responsible to check and

rectify their bid before submitting their bid into the auction.

21.1.7. The bidder shall be solely responsible for all consequences arising out of

the bid submitted by him including wrongful bidding. KIOCL or the

Service Provider will not entertain any complaints / representations in this

regard.

22. DIGITAL SIGNATURE:

To participate in the online auction, it is Mandatory on the part of bidder to

have valid Digital Signature issued by authorised Certifying Agencies approved

by Govt. of India. In the event of non availability of digital signature the bidder

shall obtain the same in order to enable himself to participate in the online

auction.

23. BUSINESS RULES FOR ONLINE AUCTION:

The general terms and conditions for online auction shall be as per Annexure-8.

24. PRICE BID OPENING:

Price Bid submitted along with Techno-Commercial Bid, shall be opened after

the receipt of comparative statement of prices discovered through online

auction from the service provider. The date and time of opening of price bids

submitted along with Techno-Commercial bids shall be intimated to bidders.

The bidder or his authorized representative may witness opening of bids if they

so desire.



Annexure - 1

25. EVALUATION OF BIDS:

25.1. After the receipt of the price comparative statement of the online reverse

auction from the service provider, the sealed price bids of all the techno-

commercially acceptable bidders received along with the techno-commercial

offers will be opened and a composite price comparative statement shall be

made (i.e. price bid submitted in sealed cover & price discovered through

online reverse auction). Placement of order shall be considered on the H-1

price arrived through composite price comparative statement.

25.2. During the online forward auction, if no bid is received within the specified

time, the online forward auction process will be scrapped and price quoted in

the price bid submitted along with techno-commercial bid shall be considered

for evaluation.

26. CANCELLATION OF TENDER

26.1. KIOCL reserves the right to withdraw / cancel the tender at any time before

conclusion of the contract without assigning any reasons thereof to the bidder.

KIOCL will not be responsible for any damages / loss whatsoever to the

bidder on account of such withdrawal / cancellation.

27. FRAUD PREVENTION POLICY

27.1. Every one may take a note that a “Fraud Prevention Policy” is being followed

at KIOCL, which provides a system for prevention/detection /reporting of any

fraud. It also forbids everyone from involvement in any fraudulent activity

and that where any fraudulent activity is suspected by any one, the matter

must be reported to the ‘Nodal Officer’ (Chief Vigilance Officer) as soon as

he/she comes to know of any fraud or suspected fraud (at [email protected]).

28. INTEGRITY PACT

28.1. KIOCL is committed to carrying out its business in an ethical and corruption

free business environment. Accordingly, the “Integrity Pact” furnished

shall form a part of the contract. Bidder shall read and understand the

Integrity Pact.

28.2. The Independent External Monitor Sri. V.UDAYA BHASKAR appointed by

KIOCL is vested with authority to verify compliance with the agreement

between KIOCL and the Bidder under Integrity Pact.




Annexure - 1

28.3. The details of Independent External Monitor/s (IEM) for this tender / contract

are given below. The role of IEM is explained at section 8 of the Integrity

Pact.

Sri V. UDAYA BHASKAR

B101,Sri Balaji Gulmohar Township,

Maa Villas Road No 1, Bachupally

Hyderabad-500090

Phone: 040 40055098

e-mail: [email protected]

28.4. A copy of an Integrity Pact is enclosed (Annexure 7). Bidders are required to

confirm their acceptance on all terms of Integrity Pact Agreement and to

return signed copy of agreement affixing signature along with seal on all

pages along with techno-commercial bid.

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Annexure - 2

SPECIFICATION OF PELLETS

A. Chemical Composition

( on dry basis) Indicative Specification

Fe 63.00 %

FeO 0.50 %

SiO2 + Al2O3 8.00 %

S 0.01 %

P 0.045 %

TiO2 0.20 %

AS 0.01 %

Other metals 0.20 %

CaO + MgO 2.00 %

Basicity 0.30

B. Physical Properties

Size: 9 - 16 mm 85.00 %

Below 5 mm 5.00 %

Bulk Density 2.00 T/M3

Tumble Index (ASTM) + 6.35 MM 92 %

Abrasion Index (ASTM) - 0.60 MM 6.00 %

Cold Crushing Strength Average 250 ±10 KG/P,

Porosity 20.00 %

Reducibility 60.00 %

C. MOISTURE (Free moisture loss at 1050C shall be)

Fair season (Oct - May) 4.00 %

Rainy season (Jun - Sep) 6.00 %



Annexure - 3

PROFORMA FOR COMPANY PROFILE

(To be forwarded in hard copy along with enclosures indicated)

1. Name of the agency with full address including fax / e-mail.

2. Status of the agency: Proprietary / Partnership / Limited Company etc.

3. Type of business: End User / Trader

4. Date, place of incorporation. Enclose copy of incorporation certificate duly

certified by notary.

5. Memorandum and Article of Association – Copy to be enclosed

6. Contact details of proprietor / partners / directors indicating their mail id and

contact numbers (both mobile and land line).

7. Details of contact persons indicating their mail id and contact numbers (both

mobile and land line).

8. Name, designation and contact details of the authorized signatory along with

authorization letter from head of the organization attesting the signature of the

authorized signatory.

9. Brief write up about the organization giving details of its activities, available

resources and size of business. Production capacity and manufacturing facilities

(if applicable) and approximate requirement of pellets.

10. Details of imports / exports with all the countries for the last three years if any:

Please indicate item wise quantity & value of imports and exports for each year

and also indicate the name and address of organizations with which business

transacted.

11. Details of imports / exports with India for the last three years if any.

Please indicate item wise quantity & value of imports and exports for each year

and also indicate the name and address of organizations with which business

transacted.

12. Details of specific experience in the field of iron ore business (concentrate, fines,

lumps and pellets) item wise and address of mills / organizations with which

business transacted including domestic sales if any.

13. Details of offices / branches of the organization in India and abroad. Details of

the targeted market/unit where the agency proposes to sell/consume KIOCL’s

products.

14. Name and address of bankers. Available L/C limit, certificate from bank

regarding performance including brief profile of financial relationship.

15. Copies of the duly audited annual reports for the last three years including

schedules and certified Auditors Report.

16. Bidders shall furnish the copies of the following duly notarized;

a) PAN

b) GST registration Certificate.



Annexure - 4 IRON ORE PELLETS SALE & PURCHASE CONTRACT

NO: KIOCL/PELLET/DTA/2019-20/xx-xx Dated. ____________________

This Contract, made and entered into as of DD/MM/YYYY by and between

KIOCL LIMITED, a Government of India enterprise, having their registered office

at II Block, Koramangala, Sarjapur Road, Bangalore 560 034 (herein after referred to

as "SELLER" which expression shall be deemed to include their successors and

assigns) of the ONE PART, and ____________________, having their registered office

at _____________________________, India (hereinafter referred to as the "BUYER",

which expression shall be deemed to include their successors and assigns)of the

OTHER PART, witnesseth as under:-

1. GENERAL TERMS :

The following terms used in this Contract and its annexure (unless the context

requires otherwise) shall be understood as follows:

1.1. "Pellets" means Iron Ore Pellets produced by the Mangalore Pellet

Plant owned by the SELLER.

1.2. "Contract" means this agreement duly executed and signed by and between

BUYER and SELLER.

1.3. "Loading Port" means New Mangalore Port at Panambur in the District of

South Kanara, Karnataka - India.

1.4. "Discharging Port" shall be at BUYER'S option.

1.5. "Ton" means Metric Tonne of 1000 Kilograms.

2. QUANTITY & DELIVERY SCHEDULE :

The SELLER shall sell and the BUYER shall buy a quantity of BF grade Pellets to be

delivered as per the following schedule.

Name of Commodity : IRON ORE PELLETS.

Delivery Period : MM- 2019 (As per the mutually agreed Laycan)

Quantity : xx,xxx MT ± 10% MOLOO

Port Of Loading : New Mangalore Port, India

[As the loading of the pellets is through a mechanised loading system, the actual

quantity loaded on to the vessel may vary up to 500 MT more or less than the hatch

plan given by the master. KIOCL will not entertain any claims including dead freight

for such variation.]



Annexure - 4 3. QUALITY :

The Pellets supplied by the Seller to Buyer will be with indicative specification as

stated below:

4. PRICE :

4.1. The Price payable by BUYER to the SELLER for supplies under this contract

shall be a Rs. xxxx.xx (Indian Rupees _______________ only) per DMT

FOBST New Mangalore, Basis 63% Fe, exclusive of all taxes, duties & levies.

The above price is inclusive of reversal of applicable Basic Customs Duties.

This price will be applicable for this shipment during MM YYYY. For pellets

the base price shall be increased or decreased on fraction prorata basis on

Fe above or below 63%.

4.2. Any Duty / Taxes / Levies asked by competent authorities to be paid on the cargo

(Other than wharfage charges) shall be paid by the BUYER and documents

acknowledging such payments shall be produced to SELLER before start up of

loading. Any other duties that may be charged at any time by the authorities, the

incidence of which is attributable to this transaction, shall also be paid by the

BUYER within the specified time. BUYER further undertakes to indemnify the

SELLER against any losses the latter may sustain to the extent of BUYER'S failure

to take prompt action as mentioned above

A. Chemical Composition ( on dry

basis) Indicative Specification

Fe 63.00 %

FeO 0.50 %

SiO2 + Al2O3 8.00 %

S 0.01 %

P 0.045 %

TiO2 0.20 %

AS 0.01 %

Other metals 0.20 %

CaO + MgO 2.00 %

Basicity 0.30


Size: 9 - 16 mm 85.00 %

Below 5 mm 5.00 %





Porosity 20.00 %







Annexure - 4

5. DETERMINATION OF WEIGHT :

5.1. Weighing at the Loading Port for each shipment shall be done by an

internationally reputed licensed marine surveyor duly appointed by the

SELLER at SELLER'S expense, by draft survey in accordance with the

International practice, and SELLER or the Licensed Marine Surveyor shall

issue a weight certificate stating the wet weight of the shipment.

5.2. The representative appointed by BUYER and approved by SELLER may

observe such weighing at the expense of BUYER.

5.3. The ascertainment of moisture at 105 degree centigrade shall be carried out

at loading port immediately after sampling by an Independent Assayer

appointed by the SELLER at SELLER'S expense in accordance with the

contract.

5.4. The weight thus determined at Loading Port shall be the final and used for

preparation of Tax Invoice for negotiation.

6. SAMPLING AND ANALYSIS :

6.1. At the time of loading of each shipment an internationally a reputed and

Qualified Assayer appointed by the SELLER shall take representative samples

in accordance with the international practice. The representative samples

shall be prepared by the assayer for physical and chemical analysis on Dry

basis for determination of iron (Fe), Silica (SiO2), Moisture, and other

constituents in accordance with the contract. The cost of this test will be to

SELLER'S account.

6.2. The assayer will draw and prepare representative samples for physical and

chemical analysis in accordance with the contract, divided into three parts

out of which, one will be analyzed by them at the loading port for the

specifications. The other two parts of the samples will be retained by the

SELLER.

6.3. The Analysis Certificate issued by the load port assayer shall be final and

binding on SELLER and BUYER.

7. PRICE ADJUSTMENT PROVISIONS :

The supplies made under this contract will be with indicative specification. No

penalties, price adjustments will be applicable in respect of the quality of this

cargo as detailed in para 3 above, other than the price adjustment for Fe% as

indicated in clause 4.



Annexure - 4

8. PAYMENT / DOCUMENTS :

8.1. BUYER shall arrange for advance payment towards the cargo value, taxes, duties

levies and cess as applicable as per the Proforma forwarded by the SELLER prior

to the shipment. The amount towards the cargo value shall be deposited to

SELLERS account with their bankers at ___________________________

ACCOUNT NO _______________, IFSC CODE: ____________. The SELLER

shall take the vessel for loading only on confirmation of the realization of such

advance payments and payment of applicable duties.

8.1.1. The SELLER shall forward the below documents to the BUYER within

10 working days from the date of B/L.

8.1.1.1. Two Original clean on-board ocean Bill of Lading marked "Freight

payable as per charter party" or Copy of "Mate's receipt" as

applicable.

8.1.1.2. Certificate of Weight at Loading Port.

8.1.1.3. Certificate of Analysis at Loading Port.

8.1.1.4. SELLER'S signed, Tax Invoice along with Debit/Credit Note (as

applicable) on the basis of weight and analysis established at Load

port as per articles 5 and 6 for 100 % value of shipment.

8.1.1.5. Certificate of Origin issued by Local Chamber of Commerce.

8.1.2. One Original clean on board ocean Bill of Lading to handed over to

the buyer or buyer’s representative.

OR

8.2. BUYER shall establish Letter of Credit in favour of the SELLER payable at sight,

which is confirmed, irrevocable, unrestricted for negotiation, divisible and

without recourse to the drawer with ________________________(Bank details will

be provided at the time of LC opening) for 110% of the estimated value of

shipment inclusive of all taxes and duties, in Rupees, 10 days prior to the arrival

of the vessel and valid for at least 60 days from the date of shipment. All banking

charges incurred at opening bank as well as advising and negotiation charges

and transit interest shall be to BUYER'S account. LC confirmation charges will be

to buyers account. The Letter of Credit can be opened by any nationalized bank

in India in favour of the SELLER.

8.2.1. The SELLER shall draw and negotiate Bills for 100% of the value of the

shipment by presenting the following documents.

8.2.1.1. Complete set of clean on board ocean Bill of Lading(3/3 original

plus 3 non-negotiable copies) marked "Freight payable as per

charter party" or Copy of "Mate's receipt" as applicable.

8.2.1.2. Certificate of Weight at Loading Port.

8.2.1.3. Certificate of Analysis at Loading Port.



Annexure - 4

8.2.1.4. SELLER'S signed Commercial Invoice on the basis of weight and

analysis established at Load port as per articles 5 and 6 for 100 %

value of shipment.

8.2.1.5. Certificate of Origin issued by Local Chamber of Commerce.

9. BILL OF LADING:

Buyer shall ensure release of Bill of Lading in full set on board the vessel on

completion of loading before sailing. Seller shall not be responsible for any

delay in sailing of vessel due to delay in release of Bill of Lading.

10. FORCE MAJEURE:

10.1. In the event of delivery of all or any part of the pellets under the Contract

being obstructed and / or delayed due to or resulting from cause or causes

beyond the control of SELLER and BUYER, such as prohibition of export or

import by Government, refusal to issue export or Import licenses, arrests or

restraints effected by rules, Government of people, war, blockages,

revolutions, insurrection, mobilisation strikes, lockouts, civil commotion,

riots, acts of God, plague or other epidemics, fire, flood, earthquake or

unforeseen blockade of entrance channel of the port, unsafe weather

conditions caused by gale or cyclone etc., breakdown of equipments at the

port of loading or at the Kudremukh projects, pellet plant including pipeline

and all facilities for handling the pellets at the loading port and breakdown of

unloading equipment at the port of discharging or any other unforeseen

circumstances beyond the reasonable control of the parties concerned,

SELLER and or BUYER shall be relieved of the responsibilities for

performance of this contract to the extent to which such performance has

been obstructed.

10.2. In the event of occurrence of Force Majeure condition as described in Article

10.1 herein above, the party so affected shall advise by cable the other party

as soon as possible and then shall, within 2 (two) weeks after occurrence of

such event, furnish the other party in writing with the particulars of the event

and documents explaining that is performance is prevented or delayed due

to cause or causes as set out in Article 10.1 herein above and further shall

furnish at the same time or at least within 3 (three) weeks after occurrence of

such event the documentary evidence in support of occurrence of such Force

Majeure condition.

10.3. The party declaring a Force Majeure shall, during the duration of such Force

Majeure condition, make its best efforts to resume the performance of its

obligations under this Contract with the least possible delay and such party

shall always advise the other party of detailed progress of the event of force

Majeure and the prospects of settlement of such event and of the resumption

of the performance of the obligations under this Contract.



Annexure - 4

10.4. SELLER and or BUYER shall be relieved of the responsibility for performance

of this contract to the extent to which such performance has been obstructed

and if approved by the other party, the time of delivery may be postponed

for the duration of time, but no longer, for which delivery is prevented by any

such cause or causes herein above mentioned.

10.5. In the event that the duration of the postponement of this Contract mentioned

herein exceeds 3 (three) months, the other party have the option to cancel

this contract in respect of the undelivered supplies or extend the period of

delivery by mutual agreement.

11. JURISDICTION OF COURT :

The courts at Bangalore, India will have jurisdiction on any disputes for

adjudication arising out of the contract.

12. CHANGE IN TERMS & CONDITIONS :

Any change, modification or any addition to the terms and conditions of this

Contract shall become effective only when confirmed by both the SELLER and

BUYER in writing.

13. SHIPPING TERMS :

The Enclosure "Shipping terms" forms an integral part of this Contract and is

placed after the text of the contract.

14. CORRESPONDENCE :

All correspondence between the SELLER and the BUYER and the documents

will be in English. The address of the SELLER and the BUYER to which all

correspondence to be addressed is as under.

SELLER BUYER

KIOCL LIMITED _____________________

II Block, Koramangala ____________________

Bangalore - 560 034, ___________________

India ___________________

TEL No : 0091 80 2553 4161 - 70 TEL No : ______________

FAX No : 0091 80 2553 5941 / 2153 FAX No : ______________

E-Mail : [email protected] E-Mail :

15. INCO TERMS :

For all terms and conditions not covered by above, INCO Terms 2010 and any

further additions or amendments there to shall apply.




Annexure - 4

16. APPLICABLE LAW :

This Contract is to be interpreted in accordance with the Laws of India.

17. INDEMNITY TO GOVERNMENT OF INDIA :

It is expressly understood and agreed between the BUYER and the SELLER

that the SELLER is entering into this Contract solely on its own behalf and not

on behalf of any other person or entity including Government of India. It is

further understood and acknowledged that the SELLER is not an agent,

representative or delegate of the Government of India and as such no rights

accrue and no obligations or liabilities fall upon the Government of India for

any acts, omissions, commission, breaches or other wrong doings on the part

of SELLER and hence no actions or claims of any nature whatsoever shall lie

against Government of India arising out of this Contract.

18. INTEGRITY PACT :

The Integrity Pact Agreement duly signed by the parties and enclosed shall

form a part of this contract. The Independent External Monitor (IEM) for the

contract is as below.

Mr V.UDAYA BHASKAR



Hyderabad-500090

Phone: 040 40055098


19. FRAUD PREVENTION POLICY :

Every one may take a note that a “Fraud Prevention Policy” is being followed






In witness hereof, the parties hereto have executed this Contract in duplicate by

signature of their respective officers, there into duly authorised as of the day and

year first above written.

SELLER BUYER

For and on behalf of For and on behalf of

KIOCL LIMITED.,

mailto:cvo@kioclltd.



Annexure - 4

SHIPPING TERMS FOR SALE OF IRON ORE PELLETS

CONTRACT NO: __________________________________________

______________________________________________________________________

1. LOADING PORT :

A. The pellets to be delivered under this contract shall be loaded at the New

Mangalore Port in the State of Karnataka, India.

B. Seller shall guarantee to accommodate safely the vessels with the following

maximum dimensions at all times,

L.O.A. : 245.00 meters

Beam : 32.20 meters

Sailing Draft : 12.50 meters with tide

(12.00 meters with tide from August to November)

2. CHARTERING :

A. All vessels to carry pellets under the terms of this contract shall be chartered

and allocated by the BUYER.

B. The BUYER shall charter vessels up to a maximum of 70,000 DWT with a

loaded draft not exceeding those indicated in 1B above for loading of Pellets.

C. The vessels will be single deck with sufficient width of hatch openings to

facilitate loading of Pellets but the ship shall not be more than 20 years of age

and shall be sea-worthy.

D. The vessel's holds shall be clean and free from foreign material which might

result in mixture and or contamination of cargo.

E. BUYER should not charter those vessels of any country whose entry has been

banned to Indian Ports by Government of India.

F. The minimum size of the vessel to be chartered by the BUYER shall be 35,000

DWT. Vessels of smaller capacity may be chartered by BUYER with the

consent of the SELLER but not lesser than 25,000 DWT.

G. The vessels shall comply with the rules and regulations of the New Mangalore

Port Trust in respect of loading of the vessel and other related matters.

H. BUYER shall arrange that the vessel's crew open and close such hatches for

loading by mechanical loader, at the BUYER'S risk and expense, of the vessel

and other related matters.

I. The Stowage Plan duly signed by the Master of the vessel or Owner's agent

be delivered in triplicate immediately after completion of loading and draft

survey, before sailing of the vessel.

J. The BUYER / Ship Owners shall ensure issue of the Bill of Lading at the

Loading Port immediately on board the vessel on completion of loading

before sailing.



Annexure - 4

3. VESSEL ALLOCATION PROGRAMME :

A. BUYER shall advise the SELLER of the Vessel Allocation Programme at least 10

(ten) days prior to the commencement of laydays. Allocation Programme

shall include the name of the vessel, the quantity to be loaded ( + / -10 % ),

dimensions of Hatches, LOA and Beam and the expected time of arrival of the

vessel at the New Mangalore Port. The above Allocation Programme shall be

subject to the SELLER'S confirmation, which is to be made within ONE

working day after receipt of BUYER'S advising message.

B. In the event of any change being made in the Vessel's Allocation Programme,

BUYER shall advise the SELLER for their confirmation each time such changes

taken place at least 15 (Fifteen) days prior to the arrival of the vessel.

C. BUYER shall arrange for the Master of the vessel to give Mangalore Office of

the SELLER 4 (four) notices of the expected time of arrival of the vessel at the

loading port. The first notice to be given 10 (ten) days prior to the expected

time of arrival (ETA) of the vessel along with the Stowage plan, the second to

be given 72 (seventy-two) hours prior to the expected time of arrival, the

third to be given 48 (forty-eight) hours prior to the expected time of arrival

and fourth to be given 24 (twenty-four) hours prior to the expected time of

arrival. In the last notice the master shall advise the approximate quantity of

cargo required to be loaded within the tolerance agreed for the vessel.

Notice to be served at the following address of the SELLER.

Jt.GM (Commercial)

KIOCL LIMITED,

Panambur, Mangalore - 575 010

Telephone : (0824) - 2407661

Fax No. : (0824) - 2407422

E - Mail : [email protected]

4. NOTICE OF READINESS :

A. The Notice of Readiness is to be served in free pratique whether at berth or at

anchorage.

B. The Master of the vessel shall submit a notice of readiness (NOR) after arrival

at the Pellet loading berth or after being ordered to anchor outside the port

whichever occurs first, provided the vessel is in all respects ready to receive

cargo.




Annexure - 4

C. Time for loading to count 12 (Twelve) hours after notice of readiness is

served and accepted when the vessel is either at pellet loading berth or at

anchorage and is ready in every respect to load the cargo and in free

partique. The time lost in waiting for berth will be counted as laytime. If the

loading starts within the said 12 hours (Turn time), half the time actually used

to count. Any time used in closing and opening of hatches not to count as

laytime. Any time used for shifting the vessel from anchorage to loading

berth not to count as laytime. Time for draft check and waiting for tide shall

not count as laytime.

D. Should the loading of the vessel by the SELLER be obstructed due to the

conditions of Force Majeure as defined in Article - 10, such time lost shall not

count as laytime irrespective of whether the vessel is being loaded or waiting

at anchorage, unless the vessel was already on demurrage. Such delays,

shall, however, be notified by the SELLER in writing to the Master of the

vessel forthwith and shall be stated in the Statement Of Facts (SOF) duly

signed by Master of the vessel or his agent and SELLER or his agent.

E. Laytime will cease on completion of loading the vessel.

F. In case loading has to be interrupted due to reasons of responsibility of the

vessel, such time lost shall not count as laytime

G. Time lost due to stoppage of loading due to rain / bad weather shall not be

counted as laytime

5. RATE OF LOADING, DESPATCH / DEMURRAGE :

A. The loading will be effected as per the loading rate mentioned below per

weather working day (PWWD) of 24 (twenty four) consecutive hours SHINC.

Charter party holidays as published by Local Chamber of Commerce

excluded unless used.

Vessels size Loading Rate PWWD SHINC

Up to 35,000 DWT 20,000 WMT

Above 35,000 DWT 25,000 WMT

Note: In case a vessel of larger size is placed for loading quantities falling

in the smaller size vessel range, the loading rate as per the smaller size of

the vessel shall apply.



Annexure - 4

B. Laytime to count at actuals when worked on Charter Party (C/P) holidays. For

stoppages, if any, during intervening C/P holidays, laytime not to count if the

vessel is not on demurrage. If the vessel is already on demurrage, full time to

count as laytime during the intervening C/P holiday.

C. The time lost due to stoppage of loading due to breakdown of the pellet

loading equipment shall be counted as laytime

D. Time used for draft surveys shall not count as laytime unless the stoppage is

on specific request by the seller.

E. Demurrage / Despatch

Demurrage rate shall be as under

Stem Quantity Demurrage per 24 hours day

(Prorata for part)

Up to 35,000 WWT Rs. 1,00,000 /-

35,001 - 45,000 WWT Rs. 1,50,000 /-

45,001 WWT & above Rs. 1,75,000 /-

Despatch rate will be half of demurrage rate.

F. Demurrage / Despatch settlement shall be made within 90 days of sailing of

vessel from pellet loading port.

G. S O F (Statement of facts) at loading port will be prepared and signed by

SELLER or their agents and counter signed by Master of the Vessel. Any

modification of this document occurring subsequent to the sailing of the

vessel, and therefore, not confirmed by the Master of the Vessel or his agent

and / or the SELLER will not be taken in to consideration for the preparation of

Lay time Statement.

H. Account of Demurrage / Despatch will be made on the basis of statement of

facts and Lay Time sheet will be submitted to the BUYER by the SELLER for

confirmation within 30 (Thirty) days after completion of loading. If the BUYER

does not respond within 60 (Sixty) days of the despatch of documents, the Lay

time calculation of the SELLER shall be taken to have been confirmed and

settlement done accordingly.

I. Eventual differences in mutual calculations and pending matter on this basis

will be arranged and solved on mutual meetings.



Annexure - 4

6. TRIMMING :

A. SELLER shall have no obligation to do trimming other than spout trimming.

SELLER shall also not have obligation to load the cargo in place inaccessible

to the ship loader.

B. The Master of the vessel shall allow the SELLER and his representatives and

agents to inspect the condition of the hatches before loading and supervise

the loading and trimming of the Pellets inside the vessel.

7. DAMAGE TO THE VESSEL :

The SELLER shall not be liable for any damage caused to the vessel during the

course of loading the Pellets in to the vessel, unless such damage is attributable to

the SELLER and is brought to the notice of the SELLER in writing immediately on its

occurrence, duly supported by a certificate issued by internationally recognized

marine surveyors in which case such damage claim should be settled directly

between SELLER and Ship Owner.

8. GENERAL :

A. Vessel shall vacate loading berth as soon as loading is completed.

B. SELLER shall have the privilege of working all available hatches for loading at

all times, vessel to supply light for night work, if required, free of expense to

SELLER.

C. If the nation under whose flag the vessel sails be engaged in war and if the

sage navigation of the vessel be thereby endangered, SELLER shall not be

obliged to load the Pellets in such vessel. If owing to out break of hostilities

the navigation of the vessel is endangered, thereby making normal

performance thereof impossible, as in the case of the Pellets loaded or to be

loaded or a part of them becoming contraband or liable to confiscation or

detention according to international law or proclamation of any of the

belligerent powers, BUYER and SELLER shall have an option of canceling the

relative chartering and allocation and/or obligation to load the pellets to such

extent, as may be effected thereby.

D. Should the port of New Mangalore be blockaded, the relative chartering,

allocation and / or obligation to load the pellets shall be nullified.

E. The SELLER shall not be responsible for any contamination of the pellets after

the same has passed the vessel's rails. Risk with respect to each shipment

shall pass from the SELLER to the BUYER the moment the Pellets has crossed

the vessel's rails at the port of loading.

F. The SELLER'S responsibility shall be limited to loading the pellets FOB (spout

trimmed) New Mangalore Port.



Annexure - 4

9. PORT CHARGES

All port charges including pilotage and shifting of the vessel whichever necessary,

shall be to the account of BUYER.

10. INSURANCE

A. Marine Insurance covering the pellets shall be taken by the BUYER and his

expense and the insurance cover shall start from the time pellets cross the

ship's rails.

B. The SELLER immediately after sailing of the vessel will intimate the BUYER

telegraphically / telefax / E-mail the date of sailing, the quantity and the

value of pellets loaded to enable him to effect the insurance within 24 hours.

11. APPLICABLE LAW

All other shipping conditions not settled under this contract shall be mutually

discussed and settled according to international shipping practice C (Ore) 7 Charter

Party Proforma.

SELLER BUYER

For and on behalf of For and on behalf of

KIOCL LIMITED.,



Annexure – 4A

CONTRACT FOR SALE AND PURCHASE OF IRON ORE PELLETS

THIRD PARTY EXPORTS

This Contract No. KIOCL/COM/PEL/______________ is made on dd/mm/yyyy for

Sale and Purchase Of Iron Ore Pellets, hereinafter referred as “Contract”, made

and entered:-

BY & BETWEEN

_______________________________, A company incorporated under the laws of

India and having its registered office at ___________________ which term or

expression shall, unless exclude by or repugnant to the context or the meaning

thereof, be deemed to included its successors and permitted assigns of second

part hereinafter called BUYER

AND

KIOCL LIMITED, A Government of India Enterprise and having its registered

office at II BLOCK, KORAMANGALA, BANGALORE - 560 034. INDIA.TEL - +9180

25521160 FAX - +91 80 25535941 / 25532153, E-mail - [email protected]

hereinafter called SELLER.

Whereas Seller and Buyer both agree to finalize this Contract under the terms and

conditions, it is therefore agreed as follows:

1.0 THIRD PARTY EXPORT :

Seller being an Export Oriented Unit (EOU), the contract is for export of

pellets where seller is exporting pellets through merchant exporter (Buyer),

as per the provisions of para 6.10 of Foreign Trade Policy (FTP). Contract

shall be executed as per relevant provisions of FTP.

1.1. DEFINITIONS: In this Contract, unless the context otherwise

requires, the following terms shall respectively have the following

meanings:

1.1.1. A fraction of a Rupee in any calculation shall be rounded up to

the nearest second decimal of Rupee if such fraction is one half

of a Rupee or more and same shall be rounded down when

otherwise.

1.1.2. “Indian Rupee“, “Rupee “, “INR” where used shall refer to the

Indian currency.

1.1.3. “FOB ST” means “Free on Board, Spout Trimmed”.

1.1.4. “Wet Basis” means the Iron Ore Pellets in the Natural Wet

State.



Annexure – 4A

1.1.5. “Dry Basis” means the Iron Ore Pellets dried at 105°

Centigrade.

1.1.6. “Pratique” means permission to do business at a port by a ship

that has complied with all applicable local health regulations.

1.1.7. “Statement of Facts”, “SOF” means a document that is drawn

up covering the time, the breakdown that occurred and

deviation commencing from the time the vessel returned to the

point of deviation and the voyage was resumed.

1.1.8. “Time Sheet” means a document which records all daily

particulars relating to the loading or discharging of cargo as

well as the duration of and reason for any stoppage of work and

is used as a basis for the calculation of demurrage or despatch.

1.1.9. “Ton(s), “Tonne(s)”, “MT”, means metric ton of 1,000

Kilograms as defined in “International System of Units”.

1.1.10. “Working day” means a day upon which business is regularly

transacted and unless expressly stated, the term “day” shall be

deemed to mean “calendar day”.

1.1.11. “Applicant” means Applicant of the Letter of Credit or the

Buyer in this Contract.

1.1.12. “Beneficiary” means the Beneficiary of the Letter of Credit or

the Seller in this Contract

1.1.13. “Independent Inspection Agency” means which are

Independent Inspection Agency / Agencies that determine

Quality and Quantity of the Iron Ore Pellets shipment.

2.0 NAME OF COMMODITY : IRON ORE PELLETS

3.0 COUNTRY OF ORIGIN : INDIA

4.0 DESTINATION : Export to any country

(As per FTP guidelines)

5.0 DELIVERY PERIOD AND QUANTITY :

5.1. DELIVERY PERIOD : dd/mm/yyyy

As per the mutually agreed Laycan

5.2. QUANTITY : 1,00,000 MT ± 10%. In shipment size of 50,000 MT ± 10% MOLOO each.

Subject to max sailing draft

[As the loading of the pellets is through a mechanised loading

system, the actual quantity loaded on to the vessel may vary up

to 500 MT more or less than the hatch plan given by the master.

KIOCL will not entertain any claims including dead freight for

such variation.]



Annexure – 4A

The Delivery schedule and consumer(s) for the above quantities shall be mutually

agreed between Buyer and Seller. Any changes in the same will be made subject

to mutual consent.

6.0 PORT OF LOADING : NEW MANGALORE PORT, INDIA

7.0 SPECIFICATION:

The Pellets supplied by the Seller to Buyer will be with specification

as stated below.

8.0 PRICE:

8.1. The Price payable by BUYER to the SELLER for supplies under this

contract shall be a Rs. xxxx.xx (Indian Rupees _______________

only) per DMT FOBST New Mangalore, Basis 63% Fe, exclusive of all

taxes, duties & levies. This price will be applicable for this shipment

during MM YYYY. For pellets the base price shall be increased or

decreased on fraction prorata basis on Fe above or below 63%.

A. Chemical Composition ( on dry

basis)

Indicative

Specification

Fe 63.00 %

FeO 0.50 %

SiO2 + Al2O3 8.00 %

S 0.01 %

P 0.045 %

TiO2 0.20 %

AS 0.01 %

Other metals 0.20 %

CaO + MgO 2.00 %

Basicity 0.30


Size: 9 - 16 mm 85.00 %

Below 5 mm 5.00 %





Porosity 20.00 %







Annexure – 4A

8.2. Any Duty / Taxes / Levies asked by competent authorities to be paid on

the cargo (Other than wharfage charges) shall be paid by the BUYER

and documents acknowledging such payments shall be produced to

SELLER before start up of loading. Any other duties that may be charged

at any time by the authorities, the incidence of which is attributable to

this transaction, shall also be paid by the BUYER within the specified

time. BUYER further undertakes to indemnify the SELLER against any

losses the latter may sustain to the extent of BUYER'S failure to take

prompt action as mentioned above

9.0 TAXES & DUTIES:

9.1. Applicable taxes and duties extra to buyer’s account.

9.2. Wharfage charges shall be paid by the buyer directly to NMPT on

the prevailing provisional rate. Differential wharfage charges if any

will be borne by the seller at a later date on finalization of wharfage

charges.

9.3. Buyer shall furnish the following documents to seller

9.3.1. Copies of the Bill of Lading.

9.3.2. Letter confirming receipt of cargo (pellets) indicating the

quantity as per the draft survey report and mentioning that the

payment would be released as per the contractual terms subject

to conformance of quality standard as per independent

inspection agency quality certificate, duly signed by the

authorised signatory. The letter to be issued on-board

immediately after completion of loading and draft survey.

9.3.3. Buyer shall ensure that names of both Buyer and Seller are

mentioned in the shipping bill and any other documents as may

be required along with sellers EOU status.

9.3.4. Buyer and seller also agree to co-operate and furnish any other

document/s in order to comply with laid down procedures /

statutory requirements.

10.0 SAMPLING & ANALYSIS

10.1. At the loading port, Seller shall at Seller’s expense, appoint

Independent Inspection Agency to carry out sampling at the time of

cargo being loaded into the vessel and to determine the quality of

pellets and shall provide a certificate showing details of the

determination and also the percentage of free moisture loss at 105

degree centigrade. The result of such Load Port analysis shall be final

and binding and the basis for invoicing and payments.



Annexure – 4A

10.2. Buyer may at Buyer’s expense appoint an Independent Assayer to carry

out Joint or Independent Inspection along with Seller’s Assayer at

loading port.

11.0 WEIGHMENT

11.1. At the loading port, Seller at Seller’s expense, appoint Independent

Inspection Agency to carryout draft survey and determine the weight of

shipment of pellets. The weight of pellets as ascertained and certified

shall be basis of Seller’s invoice.

11.2. Buyer may at Buyer’s expenses appoint an Independent Surveyor to

carry out Joint or Independent Inspection along with Seller’s Surveyor

at loading port during the loading and draft survey.

12.0 PAYMENT:

12.1. Buyer shall open, 15 days prior to the shipment, with any bank

acceptable to Seller’s bank, a letter of credit, payable at sight which is

confirmed, irrevocable, unrestricted for negotiation, providing for

multiple negotiations and without recourse to drawer with

___________________________________ (Bank details will be provided

at the time of LC opening) in favour of Seller in INR for 100% of the

value of the cargo with a provision to draw 10% over and above the LC

value.

The L/C has to contain suitable reimbursement clause for reimburse-

ment of the cargo value of the shipment to negotiating bank. The L/C

shall permit partial shipments & pro-rata negotiation. The cost of

opening the Letter of credit has to be borne by the buyer. Confirmation

charges will be borne by the seller. The Letter of Credit shall be

initially valid for negotiation for at least 60 days. Buyer shall be

responsible to extend the validity of the LC further, if required, till the

full settlement of sales proceeds.

The terms of the L/C have to be in accordance with the terms of

contract. The Letter of Credit in an acceptable form and as per contract

to be received at least 4 days before commencement of laydays. The

arrival of the vessel shall be deemed to be shifted to 4 days from the

date of receipt of Letter of Credit for calculation of the lay time. The

latest shipment date should provide for at least 15 days from the end of

the laydays.

12.2. Seller shall negotiate for 100% of the value of the cargo loaded against

submission of following documents within 15 days from the date of each

shipment:



Annexure – 4A

12.2.1. Invoice - prepared based on certificate of quality including

moisture content and certificate of weight issued by

Independent Inspection Agency appointed by the seller at

load port.

12.2.2. Certificate of Quality – Issued by Independent Inspection

Agency appointed by the seller at load port.

12.2.3. Certificate of Weight - Issued by Independent Inspection

Agency appointed by the seller at load port

12.2.4. Packing List.

12.2.5. Copy of e-mail / fax advising shipment to the buyer by

seller.

OR

12.3. BUYER shall arrange for advance payment towards the cargo value

including taxes and duties as applicable as per the Proforma forwarded

by the SELLER prior to the shipment through RTGS transfer. The

amount as per the proforma shall be deposited to SELLERS account with

their bankers at UNION BANK OF INDIA, KORAMANGALA BRANCH,

SURVEY OF INDIA COMPLEX, SARJAPUR ROAD, IIND BLOCK

KORAMANGALA, BANGALORE 560034 ACCOUNT NO

515401010022015, IFSC CODE: UBIN 0551546 The SELLER shall take the

vessel for loading only on confirmation of the realization of such

advance payments and payment of applicable duties.

13.0 NOMINATION OF VESSEL:

Buyer shall advise Seller by e-mail/Fax at least seven (7) days in

advance of the estimated date of arrival of the vessel at New Mangalore

Port specifying the type of vessel and hatch division. The vessel shall

not be more than 20 years of age and shall be seaworthy. In case the

vessel’s age is more than 20 years, the vessel shall be accepted subject

to mutual consent, and any losses suffered by the seller on account of

the overage of the vessel shall be to buyers account.

14.0 NOTIFICATION OF ARRIVAL

The Buyer shall arrange for the Master of the vessel to notify Seller, JGM

(Commercial) on FAX NO: 0091-824 -2407422, three notices of the ETA

of the vessel at the loading port. The first of such notice will be given

ten (10) days prior to the ETA of the vessel, the second to be given forty

eight (48) hours prior to the ETA and the third to be given twenty four

(24) hours prior to the ETA.



Annexure – 4A

15.0 LOADING TERMS

15.1. Seller shall guarantee to accommodate safely the vessels with the

following maximum dimensions at all times,

L.O.A : 245.00 meters

Beam : 32.20 meters

Sailing Draft : 12.50 meters with tide

Air Draft : 13.75 meters maximum.

15.2. Seller shall load iron ore pellets aboard the vessel at the following

rates per weather working day of twenty four (24) consecutive hours

Saturdays, Sundays and Holidays included, Charter party holidays

as published by Local Chamber of Commerce excluded unless used

:

Size of Vessel : Loading rate

20,000 – 30,000 DWT 25,000 WMT

30,001 – 40,000 DWT 30,000 WMT

40,001 – 45,000 DWT 32,000 WMT

45,001 – 50,000 DWT 34,000 WMT

50,001 & above 36,000 WMT

a) In case a vessel of larger size is placed for loading quantities

falling in the smaller size vessel range, the loading rate as per the

smaller size of the vessel shall apply.

b) Notice of readiness to load shall be tendered with clean holds

hatch open and ready in all respects to load at any time after

vessel has arrived at loading port whether in berth or not, if the

vessel is not in free pratique on arrival at the berth due to cause

attributable to the vessel, then a new notice of readiness shall be

tendered.

c) Laytime for loading shall commence, Twelve (12) running hours

after tendering of notice of readiness unless used, in which case,

actual time used to count.

d) In case loading has to be interrupted due to reasons of

responsibility of the vessel, such time lost shall not count as

laytime.

e) Stoppage of loading due to breakdown of the pellet loading plant

shall be counted as laytime.

f) Time lost due to stoppage of loading due to rain / bad weather

shall not be counted as laytime

g) Laytime to count at actuals when worked on Charter Party (C/P)

holidays. For stoppages, if any, during intervening C/P holidays,

laytime not to count if the vessel is not on demurrage. If the vessel

is already on demurrage, full time to count as laytime during the

intervening C/P holiday.



Annexure – 4A

h) Demurrage and Despatch rate (Charge) per day at the loading

port shall be as per charter party agreement between buyer and

the vessel owner. However, lay time calculation shall be based on

loading terms under clause 15 of the contract. Copy of such

charter party agreement shall be furnished to KIOCL by the buyer

before the arrival of the vessel.

i) Despatch will be half of the demurrage rate.

j) Any time necessarily required by a vessel to wait for tide for

completion of loading shall be counted as lay time. Lay time shall

cease to count from the time of completion of loading.

k) Shifting time shall not count as lay time unless; the vessel is

already on demurrage.

l) Time used for draft surveys shall not count as laytime unless the

stoppage is on specific request by the seller

m) Statement of facts duly signed by vessel Captain, Buyer and Seller

(KIOCL) shall form the basis for laytime calculations.

16.0 ADVICE OF SHIPMENT

Seller shall, upon completion of loading, advise Buyer within 48 working

hours by cable / telefax / e-mail of the Contract Number, Name of

Commodity, gross weight, name of vessel and loading date.

17.0 INSURANCE, DELIVERY, TITLE AND RISK

17.1. Insurance to be covered by Buyer.

17.2. Delivery of any Iron Ore Pellets sold under this Agreement shall be

deemed to have been made at the time of loading of the Iron Ore

Pellets onto the vessel at load port.

17.3. Title with respect to each shipment shall pass from the Seller to the

Buyer when the Seller has received the proceeds from the

negotiating bank against the shipping documents as set forth in

Clause 12 after completion of loading on board the vessel, with

retrospective effect from the time of delivery of Iron Ore Pellets. All

risks of loss, damage or destruction to Iron Ore Pellets sold under

this Agreement shall pass to Buyer at the time of discharge of iron

ore pellets from the loading device into the vessel.

18.0 FORCE MAJEURE

18.1. If at any time during the existence of this contract either party is

unable to perform whole or in part any obligation under this contract

because of war, hostility, military operation of any character, civil

commotions, sabotage, quarantine restrictions, acts of government,

fire, floods, explosions, epidemics, strikes or other labour trouble,

embargoes then the date of fulfilment of any obligation shall be

postponed during the time when such circumstances are operative.



Annexure – 4A

18.2. Any waiver / extension of time in respect of the delivery of any

instalment or part of the goods shall not be deemed to be waiver /

extension of time in respect of the remaining deliveries. If operation

of such circumstances exceeds three months, either party will have

the right to refuse further performance of the contract in which case

neither party shall have the right to claim eventual damages.

18.3. The party which is unable to fulfil its obligations under the present

contract must within 15 days of occurrence of any of the causes

mentioned in this Clause shall inform the other party of the existence

or termination of the circumstances preventing the performance of

the contract. Certificate issued by a Chamber of Commerce or any

other competent authority connected with the Cause in the country of

the Seller or the Buyer shall be sufficient proof of the existence of the

above circumstances and their duration. Non-availability of material

will not be an excuse to the Seller for not performing their obligation

under this Contract.

19.0 JURISDICTION OF COURT :

The courts at Bangalore, India will have jurisdiction on any disputes for

adjudication arising out of the contract.

20.0 INCO TERMS:

For all terms and conditions not covered by above, Inco Terms 2010 and

any further additions or amendments shall apply.

21.0 INTEGRITY PACT:

The Integrity Pact Agreement duly signed by the parties and enclosed

shall form a part of this contract. The Independent External Monitor/s

(IEM) for the contract/s is as below.

Mr V.UDAYA BHASKAR



Hyderabad-500090

Phone: 040 40055098




Annexure – 4A

22.0 INDEMNITY TO THE GOVERNMENT OF INDIA

22.1. It is expressly understood and agreed by and between the Buyer and

Seller that Seller is entering into this agreement solely on its own behalf

and not on behalf of any other person or entity. In particular, it is

expressly understood and agreed that the Government of India is not a

party to this agreement and has no liabilities, obligations or rights

herein under. It is expressly understood and agreed that Seller is an

independent legal entity with power and authority to enter into

contracts solely on its own behalf under the applicable Laws of India

and general principles of Contract Law. The Buyer expressly agrees,

acknowledges and understands that Seller is not an agent,

representative or delegate of the Government of India. It is further

understood and agreed that the Government of India is not and shall not

be liable for any acts omissions, commissions, breaches or other

wrongs arising out of the contract.

22.2. Accordingly, the Buyer hereby expressly waives, releases and

foregoes any and all actions or claims, including cross claims, impeder

claims or counter claims against the Government of India arising out of

this contract and covenants not to sue the Government of India as to any

manner, claim, cause of action or thing whatsoever arising out of or

under this agreement.

23.0 FRAUD PREVENTION POLICY:

Every one may take a note that a “Fraud Prevention Policy” is being followed






IN WITNESS WHERE OF, both parties have caused their duly authorized

representatives to execute this Contract.

SELLER: BUYER:

KIOCL Limited




Annexure - 5

BLANKED PRICE BID FORMAT

[TO BE ENCLOSED WITH THE TECHNO-COMMERCIAL BID]

SALE OF IRON ORE PELLETS

TENDER NO. KIOCL/COM/PEL/DTA/1L/2019/02 DT. 12.11.2019

DESCRIPTION OF GOODS

IRON ORE PELLETS

BASIS 63.0% Fe.

QUANTITY in Metric Tons

100,000 MT ± 10%

Price in INR per DMT, FOB, ST,

New Mangalore Port, exclusive of

all taxes, duties & levies, Basis

63% Fe.

In Figures: INR QUOTED / DMT

In Words: Rupees QUOTED .. per DMT

Note:

A. Please do not quote your price in this format.

B. The supply is on ‘FOB, ST, NEW MANGALORE PORT, INDIA’ exclusive of all

applicable taxes, duties & levies, 63% Fe basis.

C. In the event of any inconsistency between the price quoted in figures and in words,

the price quoted in words shall prevail and shall be binding.

Place: Signature

Date: With Name & Seal



Annexure - 6

PRICE BID FORMAT

[TO BE SUBMITTED SEPARATELY IN COVER -2]

SALE OF IRON ORE PELLETS

TENDER NO. KIOCL/COM/PEL/DTA/1L/2019/02 DT 12.11.2019


IRON ORE PELLETS

BASIS 63.0% Fe.


100,000 MT ± 10%




63% Fe.

In Figures: Rs. _____________________/ DMT

In Words: Rupees ____________________________

______________________________ Per DMT

Note:

A. The supply is on ‘FOB, ST, NEW MANGALORE PORT, INDIA’ exclusive of all


B. In the event of any inconsistency between the price quoted in figures and in words,


Place: Signature

Date: With Name & Seal



Annexure - 7

INTEGRITY PACT PROGRAM

1. INTRODUCTION:

KIOCL Limited (KIOCL), is a Central Govt. Public Sector Undertaking engaged in

Mining of Iron Ore and Manufacturing Pellets and marketing it in India and abroad.

KIOCL enjoys Mini Rathna status among the Central Govt. Public Sector undertakings,

and conducts its business in highest ethical standards, fully adhering to CVC guidelines

and exemplary industry practices.

KIOCL does its business with a number of domestic and international buyers, contractors

and vendors of goods and services. It is committed to fostering ethical and corruption

free business environment, and values its relationships with all counterparts and deals

with them in fair and transparent manner.

In order to achieve and strengthen these goals, KIOCL is implementing the Integrity Pact

Program in Co-Operation with Central Vigilance Commission (CVC) and Transparency

International (TI). As part of this initiative KIOCL will, in consultation with CVC and

TI, appoint Independent External Monitors who will help KIOCL monitor and

implement the Integrity Pact Program.

Following are the details of KIOCL's Integrity Pact Program:

➢ Commitments and Obligation of KIOCL

➢ Commitments and Obligations of counterparties

➢ Violation and Consequences

➢ Independent Monitor

➢ Implementation and Guidelines

➢ Periodic Review and Evaluation

2. COMMITMENTS AND OBLIGATION OF KIOCL.

(a) KIOCL is committed to have ethical and corruption free business dealings with

counterparties.

(b) KIOCL values its relationship with all counterparties and will deal with them in a

fair and transparent manner.

(c) KIOCL and /or its Associates (Employees, Agents, Consultants, Advisors etc) will

not seek or take bribes/undue benefits directly or indirectly for themselves or for third

parties.

(d) KIOCL will honor its commitments and make due payments to counterparties in time

subject to fulfilling contractual obligations.

(e) KIOCL will initiate punitive and corrective action, and pursue it vigorously

whenever corruption or unethical behavior occurs.



Annexure - 7

3. COMMITMENTS AND OBLIGATIONS OF THE COUNTERPARTY.

(a) The counterparty, directly or indirectly (through Agents/ Consultants/ advisors etc),

will not pay any bribes or offer or imply any form of illegal benefit to anyone to

gain undue advantage in dealing with KIOCL.

(b) The counterparty will not engage in collusion, price fixing, cartelization, etc., with other counterparts.

(c) The counterparty will not pass to any third party any confidential informations

entrusted to it, unless duly authorized by KIOCL.

(d) The counterparty will promote and observe ethical practices within its Organisation and its affiliates.

(e) The counterparty will inform the Independent External Monitor

i. If he receives demand for a bribe or illegal payment/benefit.

ii. If comes to know of any unethical or illegal payment/benefit iii. If he makes any undue payment to any KIOCL's Associates

(f) The counterparty will not make any false or misleading allegations against KIOCL

or its Associates.

4. VIOLATIONS & CONSEQUENCES: (a) If a counterparty commits a violation of its Commitments and Obligations under the Integrity Pact Program during bidding process (from the date of publication of tender to the date of award of work), he/she shall be liable for forfeiture of EMD /Bid Security submitted, without prejudice to other action that may be taken against it.

(b) In case of violation of the Integrity Pact whereby after award of the contract,

KIOCL terminates or is entitled to terminate the contract. KIOCL shall be entitled to

demand and recover from the counterparty liquidated damages equivalent to 10 percent

of the contract value, or the amount equivalent to security deposit/ performance

guarantee, whichever is higher. (c) KIOCL may ban and exclude the counterparty from future dealings until the Independent External Monitors is satisfied that the counterparty will not commit any future violation. (d) KIOCL may initiate criminal proceedings against the violating counterparty. (e) The counterparty will be liable to pay damages as determined by the Independent External Monitor.



Annexure - 7

5. INDEPENDENT EXTERNAL MONITOR (IEM) (a) CMD, KIOCL is the authority to appoint Independent External Monitor(s) (IEM) to oversee

Integrity Pact Program implementation and effectiveness. The process for their appointment shall

be similar to Outside Expert Committee (OEC). For this purpose, a panel of Independent

Monitors may be constituted by KIOCL in consultation with Transparency International (TI) and

/ or CVC, with whose clearance they will be appointed. It will be voluntary, non-salaried position

of 3-year term. IEM will have status/benefits similar to those of Chairman of Audit Committee of

Board/ status of the Directors of KIOCL

(b) In order to ensure their impartiality, they would not be drawn from KIOCL back ground.

(c) The IEM will be people of impeccable Integrity conversant with KIOCL's business,

and experienced in commercial activities.

(d) It will be voluntary, non-salaried position of 3 year term. IEM will have

status/benefits similar to those of Chairman of Audit Committee of Board/status of the

Directors of KIOCL.

(e) The major goal of IEM will be to oversee the implementation of Integrity Pact

program to prevent corruption, bribes, and any other unethical practices in the KIOCL

(f) The IEM will not have administrative or enforcement responsibilities. He will

coordinate his efforts with either anti-corruption institution such as CVC. He may engage

services of outside agencies such as accounting firms, law firms etc., at KIOCL's

expense, if required, in discharge of his responsibilities, with prior consent of KIOCL.

(g) The IEM will have access to all Officers and internal records of the KIOCL. He will

also have access to counterparties records and information regarding its dealing with

KIOCL.

(h) The IEM will have the right to attend any meetings between KIOCL and the

counterparties.

(i) If IEM observes or suspect an irregularity, he will inform the CMD of KIOCL and

Chairman of Audit Committee of its Board of Directors. Once the IEM is satisfied that

an irregularity has taken place, he may inform the Board of KIOCL.

(j) The IEM can be removed from his Office for appropriate reasons by KIOCL only by

an open and transparent process and such decision will have to be ratified by the Board

of KIOCL.



Annexure - 7 6. IMPLEMENTATION GUIDELINES To implement the Integrity Pact Program the following general guidelines will govern

the same:

(a) To select and appoint IEM in consultation with TI and / or CVC.

(b) To get commitment from all Senior Level Executives/Officials of KIOCL to

implement the program, so that any resistance to acceptance of Integrity Pact

Program is minimized. (c) To develop detailed implementation plan and finalise the Integrity Pact document

in consultation with the IEM.

(d) To notify all Senior Staff Members, Board of Directors, any other oversight body

of the Organisation and major suppliers of KIOCL's plan to implement the Integrity Pact Program, which is to be included in KIOCL's web site and

disclosed to the media.

7. PERIODIC REVIEW & EVALUATION KIOCL will periodically review the effectiveness of Integrity Pact Program by the

following procedure:

(a) The IEM and senior leadership of KIOCL will make an bi-annual self-assessment

of Integrity Pact Program effectiveness and identify areas to improve.

(b) The IEM will submit an annual report on the progress/effectiveness of Integrity

Pact Program to the KIOCL Board of Directors. (c) KIOCL may conduct an annual 360 degree review (by an outside agency) with

senior Executives, Junior Executives, suppliers and competitors of effectiveness

of Integrity Pact Program in reducing corruption.

(d) KIOCL will arrange regular meet with TI and / or CVC on an annual basis to review the effectiveness of program.

(e) For any amendments or changes in the clauses, consistent with the overall spirit

of Integrity Pact, the CMD will be competent to approve the same and need not

revert back to the Board

*****************************************


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Annexure - 7

INTEGRITY PACT THIS AGREEMENT is entered into between the following Parties: KIOCL Limited (KIOCL) hereinafter referred to as “The Principal”,

and …………………………………………………………………………(Name of the Party) hereinafter referred to as “Second Party”

Preamble

The Principal intends to award a contract, following its laid-down organizational procedures, for Sale of Iron Ore Pellets. The Principal values full compliance with all relevant laws and regulations and the principles of economical use of resources and of fairness and transparency in its relations with its Second Party. In order to achieve these goals, the Principal cooperates with the renowned international Non-Governmental Organization, "Transparency International" (TI). Following TI's national and international experience, the Principal will appoint an Independent External Monitor (IEM) who will monitor the tender process and the execution of the Contract for compliance with the principles mentioned below. IT IS AGREED AS FOLLOWS: Definitions:

a) “Principal” which is the “FIRST PARTY” means KIOCL Limited (KIOCL), incorporated under the Companies Act 1956, having their registered office at Koramangala, Bangalore – 560 034 and includes their successors.

b) “SECOND PARTY” means the person, firm or company submitting a

tender against the Invitation to Tender and includes his/ its/ their staff, consultants, parent and associate and subsidiary companies, agents, consortium and joint venture partners, sub-contractors, suppliers, sellers, buyers, customers etc, including heirs, executors, administrators, representatives, successors. And the “Second Party” also means, any party including contractors, tenderers, executors, suppliers, sellers, buyers, customers etc, whose tender has been accepted by the Principal or Company and shall be deemed to include

his/ its/ their heirs, executors, administrators, representatives and successors unless excluded by the Contract.

c) " Independent External Monitor" means a person, hereinafter referred

to as IEM, appointed, in accordance with clause 8.a below, to verify compliance with this agreement.


(Signature of the bidder with seal and date)

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Annexure - 7 d) "Party" in relevant contract means a signatory to this agreement, and

includes both “Principal” and “Second Party”.

f) “Contract” means the contract entered into between the Principal and Second Party for the execution of work mentioned in the preamble above.

Commitments of the Parties

Section 1 - Commitments of the Principal:- The Principal commits itself to take all measures necessary to prevent corruption (inducement to violate duty assigned to its employees) and to

observe the following principles;

i. No employee of the Principal, personally or through family members or any third person, will in connection with all stages of tendering or the execution of contract, demand or take a promise, or accept, for him/herself or any third person, any material or non-material benefit which he/she is not legally entitled to;

ii. The Principal will, during the tender process, treat all Second

Parties with equity and reason. The Principal will in particular, before and during the tender process, provide to all Second Parties the same information and will not provide to any particular Second Party any information/ clarification through which the Second Party could obtain an advantage in relation to the tender process or the contract execution;

iii. The Principal will not take, directly or indirectly, any steps, which

could unduly influence the functioning of IEM.

iv. If the Principal obtains information on the conduct of any of its employees which is a criminal offence under the relevant Anti-corruption Laws of India/ guidelines of Govt. / guidelines of CVC/ guidelines of Principal, or if there be a substantive suspicion in this regard, the Principal will inform its Vigilance Office and in addition can initiate disciplinary actions.

v. If the Principal obtains information of conduct of a Second Party,

or sub-contractor or of an employee or a representative or an associate of a Second Party or sub-contractor, which constitutes corruption, or if the Principal has a substantive suspicion in this regard, the Principal will inform the Vigilance Department of the Company.



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Annexure - 7

Section 2 - Commitments of the Second Party:- 2.1 The Second Party commits himself to take all measures necessary to prevent corruption. He commits himself to observe the following principles during his participation in the tender process and during the Contract execution;

i. The Second Party will not directly or through any other person(s) or

firm, offer, promise or give to the Principal, or 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 immaterial benefit which he / she is not legally entitled to in order

to obtain, in exchange, an advantage during the tender process or to vitiate the Principal’s tender process or the execution of the contract.

ii. The Second Party will not enter with any other Tenderers into any

illegal agreement or understanding, whether formal or informal. This applies in particular to prices, specifications, certifications, subsidiary contracts, submission or non-submission of bids or actions to restrict competitiveness or to vitiate the Principal’s tender process or the execution of the Contract.

iii. The Second Party will not commit any criminal offence under the

relevant Anti-corruption Laws of India; further, the Second Party will not use improperly, for purposes of competition or personal gain, or pass on to others, any information provided by the Principal as part of the business relationship, regarding plans, technical proposals and business details, including information contained or transmitted electronically.

iv. The Second Party of foreign origin shall disclose the name and

address of their agents/representatives in India, if any. Similarly, the Second Party of Indian Nationality shall furnish the name and address of their foreign principals, if any.

v. The Second Party will, when presenting his bid, disclose any and all

payments he has made, is committed to or intends to make to agents, brokers or any other intermediaries in connection with the award of the contract.

vi. The Second Party will not take, directly or indirectly, any steps,

which could unduly influence the functioning of IEM.

vii. The Second Party will not instigate third persons to commit offences outlined above or be an accessory to such offences.



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Annexure - 7 2.2 Obligation to Ensure Compliance a). Each Party will take all reasonable steps to ensure that the provisions of this agreement which are binding on it are complied with by all of its staff, consultants, parent and associated and subsidiary companies, agents, consortium and joint venture partners, sub-contractors and suppliers.

b). Each Party will appoint an appropriate senior manager with responsibility for ensuring that the provisions of this agreement are complied with. Section 3 - Disqualification from tender process and exclusion from

future contracts a). If the Second Party, before award of contract, has committed a transgression through violation of any of the terms under section 2 above or in any other form such as to put his reliability or credibility as Second Party into question, the Principal is entitled to disqualify the Second Party from the tender process or to terminate the contract, if already signed, for such reason. b). If the Second Party 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 Second Party from future contract award processes. The imposition and duration of the exclusion will be determined by 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 Second Party and the amount of the damage. The exclusion will be imposed for a minimum of six (6) months and a maximum of three (3) years. c). If the Second Party can prove that he has restored/ recouped the damage 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. d). A transgression is considered to have occurred if, in light of all available evidence, a reasonable doubt is possible.

Section 4 - Compensation for Damages a). If the Principal has disqualified the Second Party from the tender process prior to the award according to Section 3 above, the Earnest Money Deposit (EMD) 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 Second Party as may be imposed by the Principal as brought out at section 3 above.



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Annexure - 7 b). If the Principal has terminated the contract according to Section 3 above, or if the Principal is entitled to terminate the contract according to section 3 above, the EMD/Security Deposit furnished by the Second Party, if any, as per the terms of the ITT/contract shall be forfeited. This is apart from the disqualification of the Second Party, as may be imposed by the Principal, as brought out at section 3 above.

Section 5 - Previous Transgression a). The Second Party hereby declares that no previous transgressions with respect to provisions of Integrity pact occurred in the last three (3) years with any other Company in any country or with any other Public Sector Enterprise in India and, as such, there is no case for his exclusion from the tender process.

b). The Second Party hereby agrees that if he has made/makes incorrect statement in regard

to this aspect, he can be disqualified from the tender process or the contract, if already

awarded, can be terminated for that reason. Section 6 - Equal treatment of all Second Parties/ Sub-contractors a) The Second Party undertakes to obtain from all sub-contractors a

commitment consistent with this integrity pact, and to submit it to the Principal at the time of seeking approval of the Principal for appointment of sub-contractors.

b) The Principal will enter into agreements with identical conditions as that

of this Integrity Pact, with all Second Parties. c) It is essential for all Second Parties to sign the Integrity Pact with the

Company if the value of the transaction is more than 50 lakhs. The Principal will disqualify from the tender process all Second Parties who do not sign this Pact or violate its provisions.

Section7 - Breaches of this Agreement a). In the event that any Party believes that there is prima facie evidence that there has been a failure by a Party to comply with any provision of this agreement, such Party will take the following actions:

i. It will report full details of such suspected non-compliance to the IEM and CVO with copies to the Chief Executives of each of the Parties.

ii. If any such non-compliance has been carried out, or assisted by

an individual who is a member of a professional association, and such non-compliance may constitute a breach of any disciplinary code of such professional association, such Party may report such matter to the professional association.



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Annexure - 7

ii. If such non-compliance may constitute a criminal offence, either in the country in which the contract is being carried out, or in the home country of the organization or individual which carried out or assisted such non-compliance, such Party may report such matter to the appropriate criminal authorities in those territories.

b). In the event that any Party breaches any provision of this agreement, the other Parties may, in addition to the rights under this agreement, claim damages against the defaulting Party, and exercise any other rights they may have against the defaulting Party. c). The Parties will take appropriate disciplinary or enforcement action against any of their staff, consultants, parent and associated and subsidiary companies, agents, consortium and joint venture partners, sub-contractors and suppliers who cause or assist in any breach of any provision of this agreement. Section 8 - Independent External Monitor/Monitors (IEM) a). The Principal, will appoint a competent and credible IEM/Number of IEMs for the duration of this agreement from the panel of IEMs appointed in consultation with the Central Vigilance Commission (CVC). b). The IEM will assess, on an independent and objective basis, the extent to which the Parties comply with their obligations under this agreement. c). The Parties will, after submission of a tender; after the award of any contract to them and for the duration of the contract:

i. allow the IEM unrestricted access to all books, records and staff relevant to such tender;

ii. ensure that the IEM has unrestricted access to the relevant

books, records and staff of their consultants, parent and associated and subsidiary companies, agents, consortium and joint venture partners, sub-contractors and suppliers.

d). In the event that the IEM believes that there is prima facie evidence that there is a violation of this agreement, the IEM will report the same to CEO of the Principal.

e). Upon receipt of a report from the IEM, CEO of the Principal and the Board will discuss and try to agree upon the appropriate action to be taken in line with sections 3,4 & 5 above to deal with such violation.



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Annexure - 7 f). The IEM has no power to inquire any of the Parties to undertake any actions. No statement by the IEM, whether oral or in writing, is binding on any of the parties. Any Party in legal or dispute resolution proceedings can use all reports and other documentation issued by the IEM. The IEM can be called as a witness in legal or dispute resolution proceedings. g). Fee and /or any other incidentals including traveling/conveyance expenses, if any, payable to IEM shall be borne by the Principal. h). The IEM can only be removed from his appointment, if:

1. all parties agree in writing to remove him: or 2. he resigns: or 3. he is removed from his office by order of a Court having

appropriate jurisdiction. i) On completion of the term by the IEM or if the IEM is removed from his appointment (whichever is earlier), the Principal will appoint another IEM as per section 8.a above for the remaining duration of this agreement.

Section 9 - Duration of Agreement a). This agreement comes into force as soon as it has been signed by all the Parties have signed it. It cannot be terminated or varied except by the written agreement of all the Parties. b). This agreement will expire after 12 months from the date of last payment under the respective contract for the Second Party, and for all other Second Parties 6 months after the award of the contract. Section 10 - Other Provisions a). The Principal will disqualify from the tender process all Second Party who do not sign this Pact or violate its provisions. b). Should any occasion arise entailing IEM to undertake any investigation under the provisions of this agreement, the venue for such investigation shall generally be at KIOCL Corporate Office, Kormangala, Bangalore –560 034. c). This agreement is subject to Indian law. Place of performance and jurisdiction is the corporate office of the Principal. In case of any dispute, the courts at Bangalore only shall have jurisdiction. d). Changes and supplements as well as termination notices need to be made in writing. Side agreements have not been made.



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Annexure - 7

e). Addresses along with other relevant details of the Chief Executives of the Parties are as given under;

1. Principal: Chairman-cum-Managing-Director, KIOCL Limited, II–Block,Koramangala, BANGALORE – 560 034. INDIA.

Tel : 080-25531322 (O) : 080-25531272 (O) Fax : 080-25521584 (O) < Details of Second Party are to be filled in by Second Party concerned > f). Should one or several provisions of this agreement turn out to be invalid, the remainder of this agreement remains valid. In that case the parties will strive to come to an agreement to their original intentions. g). If the Second Party is a partnership or consortium, all partners or consortium members must sign this agreement.

------------------------------------------ --------------------------------------

-

For the Principal For the Second Party

Place …………………..

Date …………………..

Witness 1: ………………………………….

(Name & address) -----------------------------------------------------------------

----------------------------------------------------------------- ----------------------------------------------------------- Witness 2:

(Name & address) -----------------------------------------------------------

----------------------------------------------------------------



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Annexure - 8

BUSINESS RULE & TERMS & CONDITIONS OF E-FORWARD AUCTION

Tender No. KIOCL/COM/PEL/DTA/1L/2019/02 dated 12/11/2019

Material Bid : Sale or Iron Ore Pellets in DTA Market / Third Party Export.

Note:

The bidders are requested to note that they should have a valid digital

Certificate issued by any of the valid certifying authorities to participate in the

online bidding. Those vendors who are not in possession of a valid digital

certificate are requested to apply for the same well in advance to avoid any

last-minute hassles. The bidders may contact the service provider if they are

not in possession of a valid digital certificate.

The cost of obtaining the necessary Digital Certificate directly or

through KIOCL appointed Service Provider will be to the Bidders

account only.

BUYER NAME

KIOCL LIMITED,

(Formerly M/s KUDREMUKH IRON ORE

COMPANY LIMITED)

PURCHASE DEPARTMENT,

Bangalore – 560 034.

AUCTION TO BE

CONDUCTED BY

TO BE INTIMATED LATER

DATE OF AUCTION

Online Price Bid cum Forward Auction Date:

Dynamic Sealed Bid Time:

Forward Auction Time:

(will be specified at later)

(** Auto extension as applicable)

DOCUMENTS ATTACHED

Business rule for Forward auction [Annexure-

8(A)]

Terms & conditions of Forward auction

[Annexure-8(B)]

Process Compliance Statement [Annexure-8(C)]

Price Confirmation [Annexure-8(D)]

Contact Information



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Annexure – 8(A)

BUSINESS RULES FOR FORWARD AUCTION

GENERAL TERMS AND CONDITIONS OF FORWARD AUCTION

1. Against this Enquiry for the subject item/system with detailed scope of

supply as per our specification, KIOCL Limited, hereinafter referred to as

KIOCL, may resort to “FORWARD AUCTION PROCEDURE” i.e. ON LINE

BIDDING on INTERNET.

2. For the proposed forward auction, technically and commercially

acceptable bidders only shall be eligible to participate.

3. KIOCL will engage the services of a service provider who will provide

all necessary training and assistance before commencement of on line

bidding on Internet.

4. Business rules like event date, time, bid Increment, extensions, etc.

also will be communicated through service provider.

5. Bidders have to fax the compliance form in the prescribed (provided

by service provider) before start of Forward auction. Without this the bidder

will not be eligible to participate in the event.

6. Forward auction will be conducted on schedule date & time.

7. At the end of Forward auction event, the Highest bidder value will be

known on the network.

8. The highest bidder has to fax the duly signed filled-in prescribed

format as provided on case-to-case basis to KIOCL through service provider

within 24 hours of action without fail.

Business Rule for finalization of the procurement.

KIOCL shall finalize the procurement of material against this Tender through

Forward auction mode. KIOCL has made arrangement with

(………………………………) hereinafter referred to as KIOCL AUTHORIZED

SERVICE PROVIDER who shall be KIOCL’s authorized service provider for the

same. Please go through the guidelines given below and submit your

acceptance to the same along with your Commercial Bid.

1) Computerized Forward auction shall be conducted by KIOCL, on pre-

specified date, while the bidders shall be quoting from their own offices/

place of their choice. Internet connectivity shall have to be ensured by

bidders themselves. In extreme case of failure of Internet connectivity, (due

to any reason whatsoever may be) it is the bidders’ responsibility / decision

to send fax communication immediately to KIOCL AUTHORIZED SERVICE



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Annexure – 8(A)

PROVIDER Furnishing the price the bidder wants to bid online with a request

to the service provider to upload the faxed price on line so that the service

provider will up load that price on line on behalf of the Bidder. It shall be

noted that the concerned bidder communicating this price to service

provider has to solely ensure that the fax message is received by the service

provider in a readable / legible form and also the Bidder should

simultaneously check up with service provider about the clear receipt of the

price faxed. It shall also be understood that the bidder shall be at liberty to

send such fax communications of prices to be up loaded by the service

provider only within the closure of Bid time and under no circumstance it

shall be allowed beyond the closure of Bid time / Forward auction. It shall

also be noted that the service provider should be given a reasonable

required time by the bidders, to upload such prices online and if such

required time is not available at the disposal of the Service provider at the

time of receipt of the fax message from the bidders, the service provider will

not be uploading the prices and neither KIOCL nor the service provider is

responsible for this unforeseen circumstances. In order to ward-off such

contingent situation bidders are requested to make all the necessary

arrangements/ alternatives whatever required so that they are able to

circumvent such situation and still be able to participate in the Forward

auction successfully. Failure of power at the premises of vendors during the

Forward auction cannot be the cause for not participating in the Forward

auction. On account of this, the time for the auction cannot be extended and

neither KIOCL nor KIOCL AUTHORIZED SERVICE PROVIDER is responsible

for such eventualities.

2) Please note that the blank screen will appear in online Forward

auction when it is open to all the participating bidders. Any bidder can

quote their competitive bid in the online forward auction. Please note that the

first online bid that comes in the system during the online forward auction can

be treated as start bid price. The subsequent bid that comes in to outbid the

H1 rate will have to be more than the H1 rate by one increment value or in

multiples of the increment value

3) KIOCL AUTHORIZED SERVICE PROVIDER shall arrange to train your

nominated person(s), without any cost to you. They shall also explain you, all

the Rules related to the Forward Auction/ Business Rules Document to be

adopted along with bid manual. You are required to give your compliance on

it before start of bid process.

BIDDING CURRENCY in INR UNIT OF MEASUREMENT in DMT.

4) BID PRICE: ………………………………………………………………..”.

The technical & commercial terms are as per KIOCL Tender

KIOCL/COM/PEL/DTA/1L/2019/02 dated 12/11/2019.



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Annexure – 8(A)

VALIDITY OF BIDS: The Bid price shall be firm specified in the tender

document and shall not be subjected any change whatsoever.

5) At the end of the Forward auction, bidder has to provide a detail break

up for his highest offer within 24 hours.

6) The detailed process for online price bidding cum Forward auction

is explained below:

The online price bidding event will be conducted in three stages:-

STAGE -I: Online initial price bid

At scheduled time, the screen for On-line price bidding will be launched

wherein the techno-commercially qualified bidders will be allowed to submit

their offers through online.

During the Stage-I online initial price bidding, the bidders would be required

to quote price only on the basis of price terms indicated in their sealed price

bid submitted along with techno-commercial bid before.

STAGE –II: Start Bid Price

After the expiry of the time for submission of on-line initial price bids, the

Highest Price will be frozen by the system as the Start Bid Price (SBP) for

Stage – III on line bidding.

STAGE – III: Forward Auction on Start Bid Price

a) In Stage III of the online competitive bidding, computer screen will

display Start Bid Price and which shall be visible to all bidders participated

in the initial sealed bid auction during the start of the Forward Auction. You

will be required to start bidding after announcement of Start Bid Price and

increment amount. Also, please note that the start price of an item in online

forward auction is open to all the participating bidders. Any bidder can

start bidding, in the online forward auction, from the start price itself. If the

start price is your own price, you still need to bid in the online forward

auction. Also, please note that the first online bid that comes in the system

during the online forward auction can be equal to the auction's start price,

or more than the auction's start price by one increment, or more than the

auction's start price by multiples of increment. The second online bid and

onwards will have to be more than the H1 rate by one increment value, or

more than the H1 rate by multiples of the increment value.

b) Those bidders who have participated in the Initial Price Bid

Auction, will only be eligible to participate in the subsequent English

Forward Auction.

c) Online Initial Price Bid will be for 30 minutes and Online English

Forward (no ties) Auction shall be for a period of one hour. If a bidder

places a bid in the last 10 minutes of closing of the Forward Auction and if

that bid gets accepted, then the auction’s duration shall get extended



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automatically for another 10 minutes, for the entire auction (i.e. for all the

items in the auction), from the time that bid comes in. Please note that the

auto-extension will take place only if a bid comes in those last 10 minutes

and if that bid gets accepted. If the bid does not get accepted, the auto-

extension will not take place even if that bid might have come in the last 10

minutes. In case, there is no bid in the last 10 minutes of closing of Forward

Auction, the auction shall get closed automatically without any extension.

However, bidders are advised not to wait till the last minute or last few

seconds to enter their bid during the auto-extension period to avoid

complications related with internet connectivity, network problems, system

crash down, power failure, etc.

d) The weighage factor (multiplication factor), bid increment amount

shall be specified by KIOCL before start of bidding. The bidder can bid

higher than the start bid price in forward auction by a bid increment or

multiple of Bid increment.

e) Any commercial loading shall be intimated to bidders in advance

and it shall be added to price during dynamic auction process. For

evaluation purpose, commercial loading if any, shall be added to the

quoted price of respective bidder. However, for ordering only the final bid

placed by you shall be considered.

f) Bidder will be able to view the following on their screen along with

the necessary fields in the English Forward (no ties) {Forward Auction}:

i). Leading Bid in the Auction (only total price)

ii). Bid Placed by you

iii). Your Own Rank

iv). Start Bid Price & Bid Increment value.

g) After the completion of English Forward (no ties), the Closing Price

(CP) shall be available.

h) At the end of the Forward Auction, Service Provider will evaluate

all the bids (final price) submitted and final price comparative

statement will be forwarded to KIOCL for further processing.

i) The bidders who have participated in the event, shall be required to

submit the final prices, quoted during the English Forward (no ties) in

Annexure 8(D) Format after the completion of Auction to Service Provider

/ KIOCL duly signed and stamped as token of acceptance without any new

condition other than those already agreed to before start of auction.

j) Final price received from bidder will be taken as an offer to supply

as per terms and conditions of tender document. Bids once made by the

bidders, cannot be cancelled / withdrawn.



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Annexure – 8(A)

k) During the Online English Forward (No Ties) Auction, if no bid is

received in the auction system/website within the specified time duration

of the online price bidding cum Forward auction, then KIOCL, at its

discretion, may scrap the online price bidding cum Forward auction

process and open only sealed price bids of all technically and

commercially acceptable bidders submitted earlier along with techno-

commercial bids.

l) KIOCL shall be at liberty to cancel the Forward auction process /

tender at any time, before ordering, without assigning any reason.

At the end of the Forward Auction, KIOCL will decide upon the winner.

KIOCL’s decision on award of Contract shall be final and binding on all the

Bidders.

KIOCL shall be at liberty to cancel the Forward auction process / tender at

any time, before ordering, without assigning any reason.

KIOCL shall not have any liability to bidders for any interruption or delay in

access to the site irrespective of the cause.

Other terms and conditions shall be as per your techno-commercial offers

and other correspondences till date.

You are required to submit your acceptance to the terms/ conditions/

modality given above before participating in the Forward auction.



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Annexure – 8(B)

Terms & Conditions of Forward Auction

1. LOGIN NAME & PASSWORD: Each Bidder is assigned a Unique User Name

& Password by KIOCL AUTHORIZED SERVICE PROVIDER. The Bidders are

requested to change the Password after the receipt of initial Password from

KIOCL AUTHORIZED SERVICE PROVIDER. All bids made from the Login ID

given to the bidder will be deemed to have been made by the bidder.

2. BIDS PLACED BY BIDDER: The bid of the bidder will be taken to be an

offer to execute the work. Bids once made by the bidder cannot be cancelled.

The bidder is bound to execute the work as mentioned above at the price that

they bid. Should any bidder back out and not make the supplies at per the

rates quoted, KIOCL and / or KIOCL AUTHORIZED SERVICE PROVIDER shall

take action as appropriate.

3. HIGHEST BID OF A BIDDER: In case the bidder submits more than one

bid, the Highest bid will be considered as the bidder’s final offer to execute

the work

4. AUCTION TYPE: 1). English Forward No Ties

5. DURATION OF AUCTION: The duration of Forward Auction will be for one

hour. If a bidder places a bid in the last 10 minutes of closing of the Forward

Auction and if that bid gets accepted, then the auction’s duration shall get

extended automatically for another 10 minutes, for the entire auction (i.e. for

all the items in the auction), from the time that bid comes in. Please note that

the auto-extension will take place only if a bid comes in those last 10 minutes

and if that bid gets accepted. If the bid does not get accepted, the auto-

extension will not take place even if that bid might have come in the last 10

minutes. In case, there is no bid in the last 10 minutes of closing of Forward

Auction, the auction shall get closed automatically without any extension.

However, bidders are advised not to wait till the last minute or last few

seconds to enter their bid during the auto-extension period to avoid

complications related with internet connectivity, network problems, system

crash down, power failure, etc. (THIS SCHEDULE IS TENTATIVE. IF ANY

CHANGE IN SCHEDULE, THE SAME SHALL BE COMMUNICATED TO YOU)

6. BID INCREMENT: The minimum Bid Increment shall be available to the

Bidders at the start of the auction. The bidder can view the same by clicking

on the Item details at the start of the auction. The bidder can bid higher than

the Highest Bid in the auction by an Increment or multiple of the Bid

Increment.



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Annexure – 8(B)

7. VISIBLITY TO BIDDER: The Bidder shall be able to view the following on

his screen along with the necessary fields during English Forward – No ties

Auction:

Leading Bid in the Auction

Bid Placed by him

Your rank

8. AUCTION WINNER: At the end of the Forward Auction, KIOCL will

evaluate all the bids submitted and will decide upon the winner.

9. PROXY BIDS: Proxy bidding feature is a pro-supplier feature to safe guard

the supplier’s interest of any Internet failure or to avoid last minute rush. The

Proxy feature allows Bidders to place an automated bid against other Bidders

in an auction and bid without having to enter a new amount each time a

competing Bidder submits a new offer.

The bid amount that a Bidder enters is the minimum that the Bidder is willing

to offer. Here the software bids on behalf of the supplier.

The proxy amount is the minimum amount that the Bidder is willing to offer.

During the course of bidding, the Bidder cannot delete or change the amount

of a Proxy Bid.

Bids are submitted in Increments (Increasing bid amounts). The application

automates proxy bidding by processing proxy bids automatically, according

to the Increment that the auction originator originally established when

creating the auction, submitting offers to the next bid Increment each time a

competing Bidder bids, regardless if competing bids are submitted as proxy

or standard bids.

This feature can be used only once during a particular Forward Auction and

only after the H1 rate is equal to or more than the minimum bid amount that

the bidder has put in the system will he get the option to manually bid for the

same. In no case during the bidding till the H1 rate or more is not reached as

equivalent to the minimum bid amount offered by the bidder, will the bidder

get the option to manually bid for the same.

GENERAL TERMS & CONDITIONS: Bidders are required to read the “Terms

and Conditions” section of the auction website (https://kiocl.-------.com) using

the Login IDs and passwords given to them.

https://kiocl.-------.com/



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Annexure – 8(B)

OTHER TERMS & CONDITIONS:

1. The Bidder shall not involve himself or any of his representatives in

Price manipulation of any kind directly or indirectly by communicating with

other suppliers / bidders.

2. The Bidder shall not divulge either his Bids or any other exclusive

details of KIOCL to any other party.

3. KIOCL’s decision on award of Contract shall be final and binding on all

the Bidders.

4. KIOCL along with KIOCL AUTHORIZED SERVICE PROVIDER can decide

to extend, reschedule or cancel any Auction. Any changes made by KIOCL

and / or KIOCL AUTHORIZED SERVICE PROVIDER after the first posting will

have to be accepted if the Bidder continues to access the site after that time.

5. KIOCL AUTHORIZED SERVICE PROVIDER shall not have any liability to

Bidders for any interruption or delay in access to the site irrespective of the

cause.

6. KIOCL AUTHORIZED SERVICE PROVIDER is not responsible for any

damages, including damages that result from, but are not limited to

negligence. KIOCL AUTHORIZED SERVICE PROVIDER will not be held

responsible for consequential damages, including but not limited to systems

problems, inability to use the system, loss of electronic information etc.

N.B.

All the Bidders are required to submit the Agreement Form (Annexure- 8(C))

duly signed to KIOCL AUTHORIZED SERVICE PROVIDER before the

due date specified in the tender document. After the receipt of the

Agreement Form, Log in ID & Password shall be allotted to the suppliers

(bidders).

After the completion of the Auction event, all the Bidders have to submit the

Price Breakup immediately to KIOCL AUTHORIZED SERVICE PROVIDER for

further proceedings.

All the bidders are requested to ensure that they have valid digital certificate

well in advance so as to confirm participation before the Forward auction.



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Annexure – 8(C)

Process Compliance Form

(The bidders are required to print this on their company’s letter head

and sign, stamp before faxing)

To

……………………….

……………………….

……………………………

…………………………..

Sub: Agreement to the Process related Terms and Conditions for the

Forward Auction

Dear Sir,

This has reference to the Terms & Conditions for the Forward Auction

mentioned in the Tender No.KIOCL/COM/PEL/DTA/1L/2019/02 dated

12/11/2019.

This letter is to confirm that:

1. The undersigned is authorized representative of the company.

2. We have studied the Commercial Terms and the Business rules

governing the Forward Auction as mentioned in your letter and confirm our

agreement to them.

3. We also confirm that we have a valid digital certificate which will be

valid for the subject tender whenever we sign on the bid submission.

4. We also confirm that we have taken the training on the auction tool and

have understood the functionality of the same thoroughly.

5. We also confirm that we will fax the price confirmation & break up of our

quoted price as per Annexure 6(D) & the price bid format in the tender

document.

6. We, hereby confirm that we will honour the Bids placed by us during the

auction process.

With regards

Signature with company seal

Name –

Company / Organization –

Designation within Company / Organization –

Address of Company / Organization –

Scan & email this document to----------.



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To Annexure – 8(D)

M/s ………………………………...,

………………………………………………...

Sub: Final price quoted during online price bidding cum forward auction for procurement of

Iron ore pellets.

Ref: 1. Tender No KIOCL/COM/PEL/DTA/1L/2019/02 dated 12/11/2019.

2. e-Auction date. ……………………………

3. Our Offer No. Dated.

Dear Sir,

We confirm that we have quoted our Final Prices during the Forward Auction

conducted today and Final Price offered is as under:


IRON ORE PELLETS

BASIS 63.0% Fe.


100,000 MT ± 10%




63% Fe.

In Figures: Rs. _____________________/ DMT

In Words: Rupees ____________________________

______________________________ Per DMT

A. The supply is on ‘FOB, ST, NEW MANGALORE PORT, INDIA’ exclusive of all


B. In the event of any inconsistency between the price quoted in figures and in words,


Confirmation by the Bidder.



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CONTACT INFORMATION

KIOCL AUTHORIZED SERVICE

PROVIDER

M/s. KIOCL Limited,

Bangalore

……………………………

……………………………….

…………………………………

……………………………………

……………………………………….

Contact Person: Mr. ………………...

Tel No: ……………………….

Mobile: …………………

Email: ………………………………

M/s. KIOCL Limited,

(formerly Kudremukh Iron Ore

Company Ltd. II Block, Koramangala,

Bangalore – 560 034.

Tel: 080 – 2553 1461 (10 Lines)

Extn: 401

Fax: 080 – 25630984

25532153

Mr. G.Ramagopal

Joint General Manager(Commercial)

Mobile : 90083 05934

Email: [email protected]




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CHECK LIST

TENDER No. KIOCL/COM/PEL/DTA/1L/2019/02 Date : 12/11/2019

The following check list to be filled and submitted by the bidder along with Techno Commercial

Bid

Sl

No Particulars

Bidder’s

confirmation

(Yes/No)

1 Copy of Instructions to Bidders duly signed on each page accepting

the terms indicated (Annexure-1) : submitted

2 Copy of Pellet Specification ( Annexure-2) duly signed and stamped

accepting the same : submitted.

3 Documents / details as per proforma for company profile as per

Annexure-3 : submitted.

4

Specimen Contract copy duly signed and stamped on each page

accepting the terms and conditions mentioned thereof (Annexure-4) :

submitted

5 Duly signed and stamped copy of the Blanked Price Bid Format

accepting the terms of price bid Annexure-5: submitted

6 Price Bid (Annexure-6): submitted

7

Integrity Pact Agreement duly signed and stamped on each page

accepting the terms and conditions mentioned thereof (Annexure-7) :

submitted

8 Copy of the Business Rules for Online Forward Auction (Annexure-8)

duly signed on each page accepting the terms indicated : submitted

9 Copy of certificate of incorporation duly certified by notary: submitted

10 Copy of Memorandum and Article of Association : submitted

11 Performance Certificate from Bank : submitted

16 Duly attested annual reports for the last three financial years :

submitted

17

Duly notarized copies of (a) PAN and (b) GST Registration Certificate

We herewith confirm that we have noted and agree to all the Terms and Conditions of Tender

Documents

Date :

Place :