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raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT SaaKa iva`k`ya kayaa-laya pTnaa Branch Sales Office Patna WEST BORING CANAL ROAD, PATNA-1 Faona: 06122541308 2541086, [email protected]: 06122541086 E-mail: [email protected] ==================================================================== NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013 Corrigendum No 2 Dtd.24/10/2013 The last date and time for collection & submission of tender documents for Engaging Steel Processing Units - SPUs (Rolling Mills) for Conversion of Semis to TMT Rebars (Hot Rolled long products) in the District of Patna , Bihar has been extended as follows:- A. Collection of Tender Documents - - 28/10/2013 B. Submission of Tender Documents - Upto 15:00 Hours of 31.10.13 C. Tender Opening - Upto 15:30 Hours of 31.10.13 Address of Branch Sales Office of RINL/VSP may be noted as below: West Boring Canal Road, Patna 800001(Bihar) Signed/- Asst General Manager (Mktg) & Sr.BM,Patna
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  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    ==================================================================== NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    Corrigendum No 2 Dtd.24/10/2013

    The last date and time for collection & submission of tender documents for Engaging Steel Processing

    Units - SPUs (Rolling Mills) for Conversion of Semis to TMT Rebars (Hot Rolled long products) in the

    District of Patna , Bihar has been extended as follows:-

    A. Collection of Tender Documents - - 28/10/2013

    B. Submission of Tender Documents - Upto 15:00 Hours of 31.10.13

    C. Tender Opening - Upto 15:30 Hours of 31.10.13

    Address of Branch Sales Office of RINL/VSP may be noted as below:

    West Boring Canal Road,

    Patna 800001(Bihar)

    Signed/-

    Asst General Manager (Mktg) & Sr.BM,Patna

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    2

    Sub: Appointment of Rolling Mills (to be set up) as Prospective Steel Processing Units (SPU) for TMT

    REBARS at Patna, Bihar.

    1) Sealed tenders in prescribed forms are invited from bonafide, resourceful , financially sound Person(s)/firm(s)/ company(s)/Rolling Mills willing to offer total capacity of their plant (to be installed and commissioned within a

    maximum period of Two (02) years from the date of issue of LOI) as per requirements of RINL for appointment

    as Prospective Steel Processing Unit (SPU). The tenderer shall set up a Rolling Mill with a well established

    TMT REBARS manufacturing process of either Thermax, Tempcore, Stelmore, Turboquench, Evcon for

    conversion of (minimum 72000 metric tons per annum) of TMT REBARS (in the diameter range of 8 mm to 32

    mm) per year at Patna , Bihar .

    2) Such firms/companies who can arrange to have BIS registration for manufacturing of TMT REBARS in the size range of 8 mm to 32mm only need to participate in this tender.

    3) Mills with single product line / 2 product line will only be considered for SPU- Conversion. Entire capacity of the mill shall be dedicated to RINL/VSP.

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

    5) Tender document in duplicate along with all other terms and conditions can be obtained from RINL Branch Sales Office Patna , Bihar at the above address on payment of Rs 5000/- (Rupees Five Thousand only) in cash (non refundable) between 9:00 hrs to 17:30 hrs on any working day up to 28/10/2013. Tender

    Documents can also be downloaded from the website www.vizagsteel.com.

    6) Tender documents duly filled in and signed by an authorized person shall be put in the Tender Box kept for this purpose in the office of the BSO/RINL at the address as mentioned above latest by 3:00 PM of 31/10/2013.

    Tenders can also be submitted by Post/Courier and should reach the above address by the stipulated date and

    time mentioned above. RINL shall not be responsible for any postal/courier delay due to any reason. Tenders

    must be submitted as prescribed in Instruction to Tender for Conversion of Cast Billets /MMSM Billets to TMT

    Rebars.

    7) By submitting a quotation the tenderer shall be deemed to have fully familiarized himself with all requisite details including the quantity and type of materials expected to be converted/produced, as well as information

    contained in the enclosed Instructions to Tenderers including the Terms and Conditions of the SPU Contract and

    have fully satisfied himself/ itself of his/ its capabilities to undertake and perform the jobs to the satisfaction of

    the company. Any alteration or modification or imposition in deviation to the terms and conditions prescribed

    by RINL in Tender Papers shall be ignored.

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

    expenses etc. incurred in responding to this Invitation.

    9) The tender document should be submitted with necessary EMD. Downloaded tender documents would, in addition, need to be submitted along with the cost of the tender documents as stipulated above.

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

    11) RINL reserves the right to accept or reject any one or all the tenders or cancel the total tender process, without assigning any reason whatsoever.

    SD/-

    Sr.Branch Manager

    RINL/BSO-Patna

    http://www.vizagsteel.com/

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    3

    ANNEXURE- 2

    INSTRUCTIONS TO TENDERERS

    1. Scope of work:

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

    ii. RINL shall deliver the Cast Billets /MMSM Billets to SPU directly from its Plant or from stockyards of

    RINL or from public railway siding situated near the works of the SPU or even at the Private Railway

    siding of the SPU.

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

    iv. In case of direct delivery by road to the SPU from the Plant, it will be the responsibility of the SPU to transport the material as specified by RINL and either transportation cost actually incurred by

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

    At the time of lifting material from the plant premises of the Company, the SPU has to comply with all the

    applicable rules and regulations of the Company including the safety rules. The SPU shall be solely

    responsible for any injury/damage to its employees / personnel / equipment / vehicle etc. in the plant premises

    of the Company and the Company will have no liability whatsoever.

    v. For delivery of Cast Billets / MMSM Billets from stockyards, the transportation cost for carrying the materials to the premises of the SPU would be borne by the SPU themselves. They shall unload the Cast billets/MMSM billets inside their premises at their own cost and stack them after ensuring proper identity of the material. The SPU shall be required to execute and complete the conversion job to the extent of mill capacity or agreed plan within 7 days from the date of receipt of material at their premises and ensure that

    proper traceability of finished products is maintained with reference to the raw materials.

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

    vii. Stock of converted products shall be evacuated from the SPU's premises within 15 days of supply of Cast

    billets/MMSM billets to the SPU either directly to customers of RINL or to stockyard(s) of RINL, subject

    to SPU having completed conversion within 7 days of supply of Cast Billets / MMSM Billets.

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    4

    viii.SPU shall have to provide Test Certificates in the prescribed format to the receiving party at the time of

    delivery. 3rd party inspection will be carried out by an established and reputed independent Inspecting

    Agency to be appointed by the SPU after intimation to and written clearance from RINL, for which charges

    shall be borne by RINL.

    ix. The SPU will be responsible for cutting of rolls for embossing for the purpose of branding 'RINCON TMT"

    in the TMT Bars may be indicated to the SPU. The SPU will have to ensure that conversion activities are not

    interrupted due to non-availability of rolls with suitable embossing.

    x. SPU shall have to neatly and adequately bundle and tag TMT Bars with binding wires /wire rods/straps, in the

    following suggested bundle sizes:

    8mm-18 pcs

    10mm- 12pcs

    12mm- 8pcs

    16mm- 5pcs

    20/25/32mm- 4pcs

    (In case RINL supplies any tags/holograms/labels etc the same should be fixed/tied to the bundles of TMT Rebars.) Tags, as may be decided by RINL, would also have to be fixed on bundles by the SPU. Specific length supplies

    are to be made without any mix up.

    xi. SPU shall comply with all the relevant statutory provisions with all the statutory authorities like PF, ESI,

    Labour Act, Excise, VAT/Sales Tax, Service Tax etc, as applicable and shall indemnify and keep

    indemnified RINL against all expenses, losses etc. regarding this.

    2. SPU- Conversion Charges:

    i) For the conversion job, SPU will be paid a consolidated Conversion charge (rate) for supply of one ton of finished goods which will broadly be deemed to include the following elements. SPU shall quote their

    consolidated rates towards SPU- Conversion charges after considering the elements of cost under A and B below.

    (A) a. Variable Conversion Cost per ton of finished products b. Fixed Conversion Cost per ton of finished products c. Profit margin of SPU.

    (B) a. Storage/Stacking charges

    b. Cost of transportation of Cast Billets/MMSM Billets from RINL stockyard/public railway siding

    to SPU premises including cost of unloading.

    c. Handling cost at Public railway siding /Private siding

    d. Bending, bundling and metal tagging

    e. Weighing charges

    f. Testing and inspection charges (for internal)

    g. Handling expenses for delivery into customers' trucks

    h. Cost of cutting and embossing of rolls as per RINL's design.

    i. Cost of any other services to be rendered to RINL, as well as to RINL customers.

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

    (ii) The rates shall be quoted in the proforma mentioned at Part-C (Price Bid) for obtaining the SPU- Conversion charges. Tenderer should invariably quote for all the items mentioned in the Schedule of Rates.

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    5

    (iii) SPU- Conversion charges shall be kept valid/firm from the date of tender opening/date of acceptance of negotiated rates till the date of commencement of operations as mentioned in the work order and there after the charges would be revised every year as per the price variation clause mentioned at clause no 9 of Terms and Conditions. The base date for price revision shall be the date of commencement of operations as mentioned in the work order.

    3. E. M. D:

    a) Tenderers are required to pay an amount of Rs 100 Lakhs (Rupees One Hundred Lac only) in the form of Demand Draft/Pay Order/Banker's Cheque/Bank Guarantee (as per the format provided at Annexure- 25) with Scheduled Banks in favour of Rashtriya Ispat Nigam Limited, towards EMD at the time of submitting tender documents. No interest will be payable to the tenderers for this EMD amount. Demand Drafts/ Pay Orders/ Bankers Cheques/BGs from Cooperative and Gramin Banks shall not be accepted. No request for adjustment of earlier dues against the amount of EMD shall be entertained. In

    case of BG, the same shall be valid for a period of one year from the date of issue of BG and VSP reserves the right to ask the tenderer for extension of BG validity for a suitable period. EMD shall be forfeited in case of varience /withdrawal of tender before its validity date.

    b) In the event the offer of any party is rejected during the course of techno commercial scrutiny and evaluation, the EMD shall be returned to such tenderer at the earliest possible time from the date

    of rejection of offer. The EMD, of unsuccessful Tenderers, shall be refunded after issue of work

    order to the successful tenderer. The same will not carry any interest.

    c) EMD in respect of successful tenderer will be retained as a part of Security Deposit, in case EMD is submitted in the form of DD/Pay order. In case the EMD submitted in the form of BG, the same

    would be returned to the successful tenderer after receipt of Security Deposit. In the event of the

    successful tenderer failing to comply with the conditions mentioned in the Letter of Intent (LOI),

    and the tender documents, the EMD shall be liable for forfeiture/encashment subject to

    confirmation of issuing Bank.

    4. Financial Security:

    a) Security Deposit (towards performance of contract)

    A total amount of Rs.100 Lakhs( Rupees One Hundred lakh only) will have to be paid as Security

    Deposit (SD) in the form of Pay Order/Demand Draft/Bankers Cheque/Bank Guarantee (as per the format

    provided at Annexure-10) drawn on Scheduled Banks favouring Rashtriya Ispat Nigam Limited at Patna.

    Demand Drafts/ Pay Orders/ Bankers Cheques/BG from Cooperative and Gramin Banks shall not be

    accepted. The SD shall be submitted within 45 days from the date of issue of LOI. In case of successful

    tenderer, the EMD of Rs 100 Lakhs submitted along with the tender in the form of DD/Pay order will be

    converted into SD. In case of BG, tenderer has to submit full amount of SD in the form of BG. Thereafter

    EMD would be returned to the tenderer. The Security Deposit shall not carry any interest. BG should be

    valid for a period of Three [03] years from the date of LOI extendable by 2 terms of 3 Years & 2 years

    respectively and there after 2 more terms of 3 years and 2 years respectively.[3Y+3Y+2Y+3Y+2Y=13

    Years.].Extension of BG to be done at least 3 months ahead of expiry. In case the BG extension is not

    received from the SPU within a period of 3 months before expiry of the BG, RINL has an option to encash

    the BG, and reserves the right to terminate the contract

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

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    6

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

    Besides the performance Security Deposit, the successful tenderer shall submit one more BG (as per the

    format provided at Annexure-11) before commencement of operations, for covering the value of raw

    materials to be supplied by RINL, as per the details mentioned below.

    Monthly Turnover (Q in

    M/t)

    Total coverage

    (Rs in lakhs) for max

    tonnage

    BG coverage (Rs

    in lakhs)

    Min 6000 2265 567

    > 6000 up to 7000 Max 2642 661

    > 7000 up to 8000 Max 3020 755

    > 8000 up to 9000 Max 3398 850

    The validity of BG to be submitted by prospective SPU initially for a period of Two[02] years from the date of commencement of operations as mentioned in the work order. The BG to be subsequently extended for two terms of 2 years each to cover 1 year beyond initial contract period of 7 years. Thereafter, BG to be extended for two terms 3 years and 2 years respectively to cover the extended periods of 5 years. Extension of BG to be done at least 3 months ahead of date of expiry. In case the BG extension is not received from the SPU within a period of 3 months before expiry of the BG, RINL has an option to encash the BG, and reserves the right to terminate the contract. The SPU may enhance the value of BG as per his requirement /RINLs requirement for improving the monthly turnover, with no extra cost to RINL. In addition to the above, Custody and Indemnity Bond as per Annexure 12 shall also be taken from the SPU.[2Y+2Y+2Y+3Y+2Y=11Y].At any point of contract period, the prevailing value of the material at the time of issue shall not be more than the BG value.

    In exceptional cases, non interest bearing cash deposit in lieu of Bank Guarantee may be allowed for supply

    of raw materials to SPUs.

    5. Pre bid conference:

    To facilitate prospective SPUs to participate in the tender with full understanding of the process RINL shall hold a Pre-bid conference with the intending bidders on a pre-notified date before submission of filled in

    tender documents. The interested parties or their authorized representatives may attend pre-bid conference.

    6. Submission of Tender:

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

    6.1 The tenderers shall submit their tenders in 3 parts. The EMD shall be put in a sealed envelope No. 1 super scribed with 'Tender for SPU at Patna, Bihar - EMD' (Part - A). In case the tender documents are down

    loaded from company's website, the cost of tender documents in the form of Pay Order/ Demand Draft/Bankers cheque shall be submitted in envelope no.1 along with EMD. The tenders without valid EMD and cost of tender documents shall be rejected summarily.

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    7

    6.2 The technical bid shall be put in a separate sealed envelope No. 2 super scribed with ' Tender for SPU at Patna, Bihar- Technical Bid' (Part-B). The following documents shall be submitted along with the

    technical bid:

    A) The tenderers shall submit a certificate from their bankers regarding their financial soundness i.e. Solvency certificate (up to the value of security deposit specified in ITT) as per the proforma mentioned at Annexure-4.

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

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

    ■ In case of a company, Memorandum & Articles of Association along with the certificate of incorporation issued by the Registrar of Companies.

    ■ In case of a Partnership Firm, an authenticated/attested copy of partnership deed and a

    copy of certificate of registration issued by the Registrar of Firms (if the Firm is registered).

    ■ In case of a proprietary concern, proof of proprietorship to be produced (either Sales Tax registration/copy of IT returns or registration under any statutory enactment) which recognizes

    them as a proprietary concern.

    D) The tenderer shall give an undertaking on Rs 100/- non judicial stamp paper with regard to

    operational requirements such as

    (a) The SPU shall install and commission the Rolling Mills with the desired capacity level of Minimum 72,000MT within a maximum period of two (2) years from the date of issue of LOI.

    (b) The SPU shall provide the following infrastructure/facilities after commissioning of the unit/rolling mills

    (i) The SPU shall manufacture/produce Hot Rolled Long Products of minimum 72000 MT in the

    diameter range of 8mm to 32 mm TMT Rebars as mentioned below

    TMT Rebars:8 mm -15 %, 10 mm -15 %, 12 mm -30 %, 16 mm -20 % above 16 mm -20 %

    The SPU shall also be equipped to accept orders in specific length within plant capability, without any extra

    charges, as required by RINL, from time to time.

    (ii) The SPU shall carryout the documentation and other transactions in RINL/VSP SAP system

    through Broad band internet or VPN (Virtual Private Network) at their own cost. However, RINL/VSP

    would provide technical advice for establishing the network."

    (iii) The SPU shall have the facility for microstructure study with photographic facility for analysis in

    addition, the SPU must have Automated control mechanism for TMT Rebars process. However, such

    automated process is not required for entire production process but will only be required for the water

    quenching stage of TMT Rebars.

    (iv) The SPU shall have a weigh-bridge at their premises, preferably an electronic weighbridge with

    printout facility of 60 Mts capacity or more, with a 60 ft platform along with a calibration certificate

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    8

    issued by weights & Measures Dept. The SPU shall have an AMC to ensure that the weigh - bridge at their

    premises is kept in order.

    (v) The SPU shall be equipped for supplying 100% embossed material as per branding to be

    stipulated/prescribed by RINL. Rolls from the SPU shall have to be cut as per RINL design by machines

    like SPARKONIX by the SPU.

    (vi) The total mill capacity of the SPU shall be under the control of RINL. The total operation and

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

    (vii) Proof of registered lease agreement in case of lease followed by ownership/ possession in the

    name of the lessor for the land offered (in compliance with the mile stones mentioned at para-2 of Terms

    and conditions of contract)

    (viii) Proof of ownership/ possession of the land offered in case of own land (in compliance with the

    mile stones mentioned at para-2 of Terms and conditions of contract)

    (ix) Proof of ownership/lease to be furnished for other equipment like cranes, Mill units etc required for running of SPU. and other facilities in line with suggestive specification at Annexure (A)

    (c) The SPU shall provide the following facilities/certifications before commencement of full fledged

    operations / production

    • The SPU shall obtain a valid BIS License.

    • The SPU for TMT Rebars shall obtain a license for Turboquench, Thermax, Tempcore, Stelmore processes or Evcon processes of TMT Rebars.

    • The SPU shall obtain ISO 9001 certification.

    • The SPU shall be registered with VAT/Sales Tax, Excise and service tax authorities (if applicable).

    (d) Declaration as to whether the tenderer has any relative, within the meaning of Sec. 6 read with

    Schedule 1(a) of the Companies Act, 1956, employed in any capacity in RINL.

    (e) Copy of the Power of Attorney in favour of the authorized signatory submitting the tender

    documents on behalf of the tenderer.

    (f)

    (g)

    Copy of "Integrity Pact" as per proforma enclosed at (Annexure-13) duly signed on all pages.

    Declaration stating that the tenderer has invariably quoted for all Items as per Schedule of

    Rates.

    7. The tenderer shall fill in the price bid (Part C) as follows

    (i) Consolidated SPU charges (rate) per ton in respect of TMT Rebars from the input materials of MMSM

    billets of 65/75/90 mm Size and the contract value (multiplication of indicative qty and the consolidated

    rate) (corresponding Annexure-5 shall be prescribed in the tender by BSO depending upon the

    requirement).

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    9

    (ii) Consolidated SPU charges (rate) per ton in respect of TMT Rebars from the input materials of Cast billets

    of 150/200 mm Size and the contract value (multiplication of indicative qty and the consolidated rate) (corresponding Annexure-6 shall be prescribed in the tender by BSO depending upon the requirement)

    (iii) Deleted

    (iv) Deleted

    (v) Total contract value which is the sum of contract value arrived for TMT Rebars mentioned at Part-C (i to

    ii) above (the Annexure 9 shall be prescribed in the tender by BSO in the tender).

    The rates/ contract value quoted by the tenderer shall be both in figures and words and shall be free from

    corrections or erasures. Any corrections or erasures shall be duly initialled with date by the tenderer. In

    case of any discrepancy between the rate quoted in figures and words, the rate quoted in words shall

    prevail.

    The duly filled up price bids as per the Proforma for 'Schedule of SPU- Charges' at Annexures-5,6,7 shall

    be put in a separate sealed envelope No. 3 super scribed with 'Tender for SPU- at Patna , Bihar - Price Bid' (Part - C).

    vi) All the envelopes shall indicate the name and address of the tenderer and shall be sealed and put inside another master envelope No. 4, which shall be submitted in sealed condition, by the tenderer. The master

    envelope No.4 shall be super scribed 'Tender for SPU at Patna , Bihar .' and shall indicate the name and address of the tenderer.

    vii) In case of correction/erasing etc., the same should be countersigned by the authorized signatory of the

    tenderer and stamped with the office seal of the tenderer.

    8. Receipt of Tenders:

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

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

    - Tenders received in tender box. (b) RINL will not take any responsibility /liability for accepting a tender because of any loss or delay in

    transit resulting in

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

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

    herein below:

    BID SUBMISSION CLOSING DATE & TIME 31/10/2013 15:00 Hours

    BID OPENING DATE , TIME & VENUE 31/10/2013 15:30 Hours at RINL/BSO-Patna address

    mentioned above

    d) Immediately thereafter, the tenders will be opened except the price bid.

    9. Rejection of Tenders:

    (a) Tenders shall be liable for rejection in case of non-compliance in submission of any above documents i.e as indicated at para 6.0 above. In case any deviation is found in the downloaded tender documents submitted by the tenderers than what has been stated in the original tender document, such tenders shall be liable for rejection, in case the deviations are not withdrawn.

    (b) In case of receipt of any adverse report in respect of capabilities and performance of a tenderer, from any department of RINL or from Ministry of Steel/ Statutory Bodies/CBI/CVC, before or after opening of

    Price Bids, then the tender/ quotation submitted by such tenderer shall be rejected stating reasons for

    rejection and with approval of competent authority on the basis of recorded reasons.

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    10

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

    10. RINL/VSP shall not give time, for submission of Earnest Money Deposit (either DD/Pay order or BG) and for submission of Cost of tender documents. RINL/VSP shall give 3 (three) weeks time for further clarification /rectification of any deficiencies in the tender and seek clarifications /confirmations / documents / withdrawal of deviations from the terms and conditions of contract without any revision in prices. In case of failure to rectify the deficiencies within 3 (three) weeks time, the tender would be rejected

    summarily and Price bid of tender would be returned unopened and EMD would be refunded. In case none of the tenderers rectify the deficiencies within 3 (three) weeks time, RINL/VSP reserves the right to give further time at it' s sole discretion.

    11. Submission of Security Deposit towards Performance Guarantee & Financial Coverage:

    Towards Performance Guarantee:

    Separate BGs for amounts as mentioned at clause no 4 of ITT to be submitted by prospective SPU initially

    for a period of Three [03] years from the date of LOI extendable by 2 terms of 3 Years & 2 years

    respectively and there after 2 more terms of 3 years and 2 years respectively.[3Y+3Y+2Y+3Y+2Y=13

    Years.]. Extension of BG to be done at least 3 months ahead of expiry. In case the BG extension is not

    received from the SPU within a period of 3 months before expiry of the BG, RINL has an option to encash

    the BG, and reserves the right to terminate the contract

    In case of failure to reach any or both of the first two milestones, SPU has to make good the forfeited

    amount, if any , to ensure that the SD amount as stipulated in the tender is submitted to RINL, at the time of

    issue of work order.

    Towards Financial coverage for Raw Materials:

    Bank Guarantee towards Security deposit for financial coverage for Raw Materials can be submitted initially for a period of Two[02] years from the date of commencement of operations as mentioned in the work order. The BG to be subsequently extended for two terms of 2 years each to cover 1 year beyond initial contract period of 7 years. Thereafter, BG to be extended for two terms 3 years and 2 years respectively to cover the extended periods of 5 years. Extension of BG to be done at least 3 months ahead of date of expiry. In case the BG extension is not received from the SPU within a period of 3 months before expiry of the BG, RINL has an option to encash the BG, and reserves the right to terminate the contract. The SPU may enhance the value of BG as per his requirement /RINLs requirement for improving the monthly turnover, with no extra cost to RINL. [2Y+2Y+2Y+3Y+2Y=11Y].

    12. Evaluation of Price Bids:

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

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    11

    ANNEXURE- 3

    TERMS AND CONDITIONS OF CONTRACT FOR SPU-CONVERSION 1.

    1. Definitions:

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

    the context otherwise requires.

    The 'Company' shall mean Rashtriya Ispat Nigam Limited (RINL) with its Registered Office at Administrative

    Building, Visakhapatnam 530 031. And also having one of its Branch Sales Office at West Boring Canal Road,

    Patna 800001, Bihar.

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

    charge of the Region.

    'Sr Branch Manager' shall mean the Branch Manager of the Concerned Branch under whose jurisdiction the SPU-

    Conversion premise is situated or any other Officer of the Company for the time being in charge of the Branch.

    'Tenderer' shall mean the person, firm/ company or corporation/Rolling Mills submitting a tender against the

    Invitation to Tender and shall include his / its successors and assigns approved by the 'Company'.

    Prospective SPU (SPU) shall mean the tenderer whose tender has been accepted by the "Company" and shall include SPUs successors and assigns approved by the Company. It shall also mean the tenderer who is going to

    install and commission a Unit/Rolling Mills within a maximum period of two (2) years.

    'Contract' shall mean and include the Agreement between the Company and the SPU duly signed by the parties

    thereto for the execution of the work together with all documents annexed / attached therewith or referred to therein.

    'Public railway siding' shall mean the Railway Goods shed where Railway wagons are placed for unloading and / or

    booking of goods including Iron & Steel materials (This goods shed may not be a public booking point in the strict

    literal sense).

    'Private Siding' shall mean the Railway siding as defined in the siding agreement with the railways inside the SPUs

    Yard and where railway wagons are placed for unloading and / or booking of Iron & Steel materials.

    'Company's Materials' /Materials shall mean Iron and steel materials dispatched from the company's Plant at

    Visakhapatnam, materials from company’s stockyards/ other locations or other Iron and Steel materials received

    from time to time by SPU on company's account.

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

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

    Billets' shall mean Billets of size 150x150mm and 200x200 mm. 'MMSM Billets' shall mean Billets

    of size 65x65mm,75x75mm,90x90mm 'Raw Materials' shall mean Cast Billets or MMSM Billets.

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    12

    2. Capacity to be committed under SPU- Conversion:

    (i) The prospective SPU shall adhere to the following schedule of activities with regard to installation and

    commissioning of Rolling Mills

    (a) Land acquisition and land levelling .... Within 4 months from the date of issue of LOI

    (b) Erection and Commissioning of Equipment ...... Within 12 months from the date of issue of LOI

    (c) Submission of documents and ... Within 1 year 9 months from the date of issue of Commencement of commercial LOI. Production

    ii) In case of failure to reach the milestones as mentioned above, charges shall be recovered/adjusted from the

    S.D as below:

    For (a) . . Rs 5 lakhs

    (b) ..... Rs 10 lakhs

    (c) . . Balance amount of SD.

    Separate BGs for amounts as mentioned at Point 4 of ITT to be submitted by prospective SPU initially for a

    period of Three [03] years from the date of LOI extendable by 2 terms of 3 Years & 2 years respectively

    and there after 2 more terms of 3 years and 2 years respectively.[3Y+3Y+2Y+3Y+2Y=13

    Years.].Extension of BG to be done at least 3 months ahead of expiry. In case the BG extension is not

    received from the SPU within a period of 3 months before expiry of the BG, RINL has an option to encash

    the BG, and reserves the right to terminate the contract

    In case of failure to reach any or both of the first two milestones, SPU has to make good the forfeited

    amount to ensure that the SD amount as stipulated in the tender is submitted to RINL.

    The utilization of the rated capacity will be examined by RINL for the maximum output from the date of

    commissioning of plant on a 2 shift basis of 8 hrs each with capital repair of max 10 days in a year apart

    from planned 1 day weekly shutdown and 7 days closed holidays for the purpose of identifying the licensed

    capacity. Illustration for capacity calculation is given as below:

    Example: To achieve a minimum 72,000 MT per annum rated capacity, the required hourly production

    shall be calculated as below:

    No of days in a year ...... 365

    Less:

    Weekly shut downs in a year . . 52

    Capital repairs once in a year . . . 10

    Closed holidays in a year . . 7

    Total 69

    Actual days of production ------ 365- 69=296

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    13

    Considering the production in 2 shifts per day

    No of shifts available 296x2 = 592

    Required production per shift = 72000 / 592 = 121.62 MT

    Required production per hour = 121.62/8 = 15.20 MT.

    3. Issue of LOI and Work Order and Agreement:

    (a) On approval of appointment of specific SPU, RINL shall issue a Letter of Intent (Annexure-14) to the successful tenderer to complete the necessary formalities like, submission of Bank Guarantee within a

    period of 45 days.

    (b) After commissioning the Rolling Mills and trial production, SPU would offer the Rolling Mills to RINL for final inspection. The facilities provided will be inspected by RINL along with the documents submitted in

    compliance with the undertaking mentioned at clause no -6.2( D) of Instructions to tenderers and give final

    clearance for acceptance of the SPU. Accordingly, the work order will be issued by RINL. The date of

    commencement of operations shall be as per the date mentioned in the work order (Annexure-16). There

    after SPU shall start operations after submission of BG against raw materials, custody and indemnity bond.

    (c) The SPU shall execute a formal Agreement on non-judicial stamp paper (in the prescribed format as mentioned at Annexure-15) within 7 days from the date of issue of work order. Till the time of signing of

    the formal agreement, the LOI together with the NIT and all the tender documents signed by the tenderer

    shall form the contract between the parties for the subject work.

    4. Transportation of finished products and Door Delivery:

    The scheme essentially envisages that SPU shall supply converted products to the customers of RINL

    against valid delivery order from SPUs premises. However, if a customer prefers to take door delivery at

    their premises, then Branch Sales Office of RINL shall provide door delivery for all converted products

    from the SPU's premises through the transporter appointed by RINL for the purpose. Weight recorded at

    SPUs weighbridge shall be final. Transport contractor shall be held responsible for any shortage with

    reference to SPU weighment.

    Converted product may also be brought to the Stockyard by authorized transporter of RINL for onward

    delivery to the customer.

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

    In case of delivery from SPUs premises to the customers, the weight recorded in the weigh-bridge of the

    SPU shall be accepted.

    RINL reserves the right to go for reweighment of the converted products and in case of reweighment, the

    weight determined by the RINL will be final and binding.

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    14

    5. Supply of Cast Billets / MMSM Billets:

    (i) Cast Billets / MMSM Billets would be supplied to SPUs on stock transfer basis from plant at

    Visakhapatnam/nearby Stockyard.

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

    Plant, through their own arrangements. Depending upon the specification of the finished products,

    availability, Cast Billets / MMSM Billets to be supplied to the SPU will be decided. The Cast Billets /

    MMSM Billets would be in standard length (up to 15% in short length of Minimum1.5 Mtrs). Linked test

    certificates for the raw materials would be made available to SPU.

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

    SPUs instead of directly delivering the same at the Plant, at RINLs option. The size of the input material to

    be supplied by RINL shall normally be Cast Billets in sizes 150x150mm and 200x200mm. / MMSM Billets

    i.e 65x65/75x75/90x90mm.

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

    RINL will arrange for supply of Cast Billets / MMSM Billets up to the minimum guaranteed capacity i.e.

    75% of (indicative quantity in the NIT per annum). Supplies beyond this quantity by RINL will be subject

    to availability

    6. Recovery of amount in case of non performance/ non compliance of contractual Obligations a) If the company suffers any losses or damages due to any negligence and / or non-performance of the

    obligations under the contract by the SPU, the company may without notice and without prejudice to any other right, recover the amount(s) and appropriate the same from the Security Deposit and/ or the BG

    towards the settlement of all loss or damage. b) However, the company reserves the right to recover such losses and/ or damages by enforcing the Bank

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

    c) The decision of the company as to the amount of loss (es) / damage(s) suffered by the company shall be final and binding upon the SPU.

    d) In the event of BGs being inadequate or fully encashed, the balance of the total sum recoverable shall be deducted from any sum due to the SPU under this or any other contract with the company. Should such sum also be not sufficient to cover the full amount recoverable, the SPU, on demand, shall pay to the company the balance due.

    e) Wherever the BGs fall short of the amount specified in clauses above by the virtue of any recoveries made by RINL, the SPU shall enhance the value of B/Gs within 15 days so that the total amount of security shall not at any time be less than the specified amount.

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

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

    No pending demands from statutory authorities like Income-tax etc. No claim certificate in favour of RINL (As per Annexure-17)

    7. Payment of Bills: a) Payment to the SPU for the jobs performed shall normally be made on fortnightly basis on the quantity

    delivered by the SPU and only after signing of the agreement. Payment shall be made within 30 days (7 days in case of SSI Units) from the date of submission of bills in the BSO provided SPU complies with

    submission of required documents as mentioned below at (b)

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    15

    b) For release of payment against Conversion, SPU shall submit following documents to RINL-BSO for verification of correctness of the quantities billed for, the rates and recoveries in respect of materials released to him and other terms and conditions of the contract:

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

    iv. Test Certificates pertaining to the deliveries at (ii) above.

    8. Metal loss: a) For every ton of Cast Billets/MMSM billets supplied, SPU shall have to return 0.95 MT OR 0.98 MT of

    tested finished product for Cast Billets and MMSM Billets respectively.

    b) If the SPU is able to deliver higher yield (exceeding 95 % or 98% of material handed over) of finished product in standard length (10-12 Metres), then RINLwill pay bonus @ equal to the prevailing selling price of RINL for the concerned item/minus Rs. 500 per ton in respect of such excess quantity. The Selling Price of the product will be decided by the concerned Sr Branch Manager, communicated on a monthly

    basis and shall be final. No claim for such quantity or rate would be referable for adjudication. c) In case SPU fails to supply 95 % or 98% as the case may be of the input as finished products, RINL shall

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

    d) The arisings including the short length may be disposed by the SPU on monthly basis after due inspection and clearance by RINL officials.

    9. Revision of rates:

    The SPU conversion charges (quoted rate) shall be kept firm till the date of "Commencement of

    operations" as mentioned in the work order. Thereafter SPU charges shall be revised for every one year, as per the price revision formula laid down under, based on the following weightages and neutralization for each of the components:

    Components Weight Neutralization Basis

    Labour 10 % 100 % Min or statutory Wages as per notification of labour

    department of the concerned Central government.

    Fuel ( furnace Oil) 20 % 60 % Any PSU oil companies retail outlet

    Electricity 25 % 60 % Unit electricity rate (applicable to the SPU category)

    as per the Electricity provider Co/ SEB in the

    concerned locality

    Overhead 30 % 50 % End month RBI Index on machinery and M/c tools,

    and transport equipments and parts on a simple

    average basis.

    Profit 15 % Nil

    The base date for indices shall be the date of commencement of operations as mentioned in work order.

    Minimum average wages applicable to the skilled, semi skilled and unskilled workmen employed by SPU,

    as notified by the Asst Labour Commissioner Central, Ministry of Labour and Employment, Govt of India

    published in the Gazette of India.

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    16

    10. Taxes and Duties:

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

    b) The SPU shall ensure that the delivery of converted/finished products is made after payment of the excise

    duty as applicable. The SPU shall ensure that the applicable excise duty is paid within due date as per

    Excise law on delivery of converted/finished products.

    c) The SPU shall be reimbursed the differential between Excise Duty deposited on the finished products and

    credit of Excise duty availed on Cast billets/MMSM billets supplied by RINL subject to Excise law in

    force upon submission of proof of payment along with the bills.

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

    obligations under this contract, except Service Tax if applicable. In case Service tax is applicable, the SPU

    shall submit the tax invoice in the format specified by the Department for obtaining the reimbursement.

    Income Tax or any other taxes or duties which the Employer may be required by Law to deduct shall be deducted at source and the same shall be paid to the Tax Authorities for the account of the SPU and the

    Employer shall provide the SPU with required Tax Deduction Certificate. All applicable taxes as per directives of respective state government shall be deducted from the bills of the SPU. Necessary receipt to this effect will be issued to the SPU in the prescribed proforma.

    11. Guarantee of work & Imposition of fine:

    a) RINL shall utilize the agreed capacity of the SPU on a monthly basis. (While the dia/section wise percentage break up may be indicated in the tender in order to indicate the extent of output desired in each size /size

    range), a consolidated rate will be obtained for TMT rebars in the rate schedule. The actual percentage of work in the specific diameter range can vary.

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

    SPU capacity, (the minimum guarantee per annum), compensation amounting to 48 % of the SPU

    conversion charges per ton for the quantities short supplied from the minimum guaranteed quantity shall be

    paid to the SPU as per the example given below:

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

    then 2000 T will be the short supplied quantum in terms of minimum guaranteed quantity per annum (75%

    of 72,000 MT is 54,000 MT). Assuming the SPU-conversion charges are Rs. 2500/- per ton of finished

    product and billets equivalent to 2000 T of TMT short supplied, then compensation payable will be Rs.24

    lakhs (48% of 2500 X 2000).

    However, Force Majeure provision shall be invoked if supply of cast billets/MMSM billets is affected due

    to break down of Plant and Machinery of the company, conditions like strike, lock out, natural calamity etc.

    or due to any other act beyond its control and no compensation shall be payable in such an eventuality.

    Force majeure clause: If the Company and/or the SPU be prevented from discharging its or their obligation under this contract by reasons of arrests or restraints of privacy of rules, Government or people, War, Blockade, Revolution, Insurrection, Mobilization, Strikes, Riots, Civil Commotions, Lockouts, Accidents, Acts of God, plague, or other epidemics destruction of the materials by fire or flood or other natural calamity or on account of any other cause interfering with the production and/or delivery of the

    materials as herein above contemplated, the time for delivery shall be postponed by the time or time during

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    17

    which production and/or delivery is prevented by any such causes as herein above mentioned, provided that

    in the event of such delay exceeding ninety days, the party other than the party which invokes the force majeure may at their option, cancel this contract by Notice in-writing to the other party in respect of the undelivered quantity of the materials without, however, any right against or being responsible to the other party for such cancellation. The party invoking force-majeure shall within 15 days of the occurrence of force-majeure causes; put the other party on notice supported by certificate from the Chamber of Commerce or concerned governmental authority and shall likewise intimate the cessation of such causes. If the force-

    majeure condition continues beyond a period of six months the Company or the SPU may at his option cancel this contract by notice in writing to other party in respect of the undelivered quantity of the materials without, however, any right against or being responsible to the other party for such cancellation.

    d) The SPU shall have to ensure above minimum monthly production of 4500 MT (75% of 6000 MT) of SPU

    capacity failing which fine amounting to 48% of the SPU conversion charges per ton in respect of the shortfall in the volume shall be paid by the SPU, in a manner similar to the example given at Para (c) above.

    In case force majeure conditions like strike, lockout, natural calamity etc. affects totally the production in

    the SPU plant, fine commensurate with the period in which production was suspended due to force majeure

    conditions, the same may be waived subject to submission of authenticated documents to the complete

    satisfaction of RINL. In such an event, SPU-Conversion Charges shall not be payable by the company in

    respect of the shortfall quantity, if any, towards minimum guaranteed volume.

    While the above fine on either side shall be calculated on a monthly basis, there shall be a makeup provision on a quarterly basis on either side, for the purpose of actual payment / recovery. In other words, shortfalls during a month or two during the quarter (1

    st Quarter - April to June, 2

    nd Quarter- July to

    September, 3rd

    Quarter October to December, 4th

    Quarter - January to March) under consideration can be made good during the quarter as a whole.

    12. Basis for determining Excess/shortage:

    (i)In respect of supply of Cast Billets / MMSM Billets directly from the Plant, the quantity as indicated in the

    Stock Transfer Challan shall be the basis of receipt of the said material by the SPU in case of rail and in

    case of receipt by road, weight of SPU weighbridge shall be final and RINL transporter shall be held

    responsible for any shortage with reference to SPU weighment. In case if SPU directly lifts from plant,

    weight as recorded in the stock transfer Challan shall be the basis of receipt.

    (ii) In case of stock transfer of converted products from SPU premises to any of the RINL's stockyards the weight as recorded at SPU weighbridge shall be final and in case of shortage, RINL's transporter shall be held responsible for such shortage.

    (iii)In case of delivery to customers from SPU premises by vehicle of the RINL authorized transporter/

    customer, the weight recorded in the weigh-bridge of the SPU shall be accepted. For this purpose SPU shall

    get his /their weighbridge(s) duly certified at regular intervals by Weights & Measures, Dept. of the Govt.

    Shortage/excess exercise shall be carried out, at the end of every financial year or contract period whichever

    is earlier, followed by stock verification for which the charges shall be borne by the SPU. RINL reserves

    the right to conduct surprise or periodic stock verification without any prior notice.

    13. Monitoring of conversion:

    RINL may at its sole discretion post its employee(s) in the premises of SPU to oversee the conversion

    activities. However, this will not dilute the responsibility of the SPU to ensure proper utilization of cast

    billets/MMSM billets supplied for conversion, process, inspection including sample testing, and quality

    control of converted materials. Visits , inspections and support from RINL' s technical staff /

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    18

    employees/representatives shall also exist. SPU shall proved all the required help, assistance etc. during the

    visit, inspection etc. of RINL’s technical staff / employees/representatives.Third party inspection agency

    would also inspect the process activities. The conversion details on weekly basis shall be submitted by SPU

    as per the format at Annexure-18.

    14. Inspection and Quality control:

    To ensure that all materials dispatched to customer/other Branches conform to the BIS specification, regular

    inspection/testing is to be carried out by SPU as per BIS norms. The SPU shall have facility for

    microstructure study with photographic facility for analysis. They will have to keep regular samples along

    with the photographs of microstructure on every 100 Mt of rolling. In addition, technical staff / employees

    /representatives of RINL will be visiting SPU's premises for inspection of the following, from time to time:

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

    ii) Sample analysis for confirmation of mechanical properties.

    iii) Converted products are dispatched to the customers/RINL's allottees exactly as per description

    given in the D.O.

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

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

    (The roles and responsibilities of Third party inspection Agency for SPU Conversion is as per Annexure- 19.)

    vi) To inspect as to whether documentation through the RINL's ERP /SAP System is being effectively

    managed.

    vii) To ensure proper traceability of the finished products with reference to the Cast Billets/MMSM Billets

    supplied by RINL.

    For the above purpose, the SPU shall extend all the necessary help and facilities to the executives of RINL

    and also to BIS/any other Inspectors, as and when they visit the premises of the SPU. The role and

    responsibilities of SPU Conversion In-charge has been mentioned at Annexure -21

    15 . Issuance of Test Certificates:

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

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

    a) Name, address of the re-rollers, ISI mark and their BIS license number. b) RINL logo and the brand name "RINCON TMT" for TMT REBARS. c) The draft format of TC to be provided (Annexure-20) may be got approved from BIS, as per Jurisdiction of the marks area of BIS.

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    19

    iii) Holding of a valid BIS License is a requirement of the contract. Therefore, if the BIS License has been

    suspended by the concerned authorities, the same shall be intimated by SPU to Sr BM. Then the Sr Branch

    Manager shall take immediate steps to suspend supply of input materials (viz. Semis) and suspend rolling

    operation until the license is reinstated / revoked. In case there is a delay of more than 30 days in revoking

    of the suspension, action may be taken for removal/disposal of the inventory of semis and finished products

    by the concerned Branch, from the premises of the SPU at the cost of SPU. The SPU would also be liable

    for any losses on account of non-certified (BIS) finished materials if any. Concerned RM would get the

    matter reviewed before according approval for resumption of the activities. Other terms and conditions

    remain unchanged.

    16. Quality Complaints and its settlement:

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

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

    be binding on the SPU.

    Though the responsibility lies with RINL for shortage/missing wagons, SPU shall co-ordinate with

    Railways for lodging the claim, follow up with Railways etc for settlement of claim. If required, SPU shall

    lodge the claim on behalf of RINL and pursue the same till the settlement of claim.

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

    be inspected by RINL and their decision on the matter will be final and binding on the SPU.

    c) Converted products returned under quality complaint shall be disposed by RINL and SPU will be

    responsible for paying to RINL the loss in realization on account of quality complaints including

    transportation, handling, and all other expenses. No conversion charges shall be payable for such returned

    quantity.

    d) In case of any rejection of finished products after 3rd party inspection, such materials will be taken back by RINL for disposal. The loss in realization and transportation cost and all other expenses for taking back and disposal of such material shall have to be borne by the SPU. No conversion charges shall be payable for

    such returned quantity.

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

    17. Embossing:

    a) All converted products produced from RINL billets only by SPU will be 100% embossed as per RINL specification i.e."RINCON TMT " for TMT rebars or as decided by RINL officials from time to time.

    b) The SPU shall have to undertake 100% embossing of the converted materials as per design and direction given by RINL.

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    20

    c) To have embossing of TMT for branding purposes the rolls will have to be cut as per RINL design by machines like SPARKONIX by the SPU.

    18. Reports & Returns:

    a) The SPU shall keep proper daily account of the converted or finished products viz. quality, size, quantity, length of semis rolled, actual size, quality, quantity of converted /finished products, actual yield test results, inspection notes etc. and arrange for delivery of material against original delivery orders issued to company's customers or their representatives against proper letter of authorization, the copy of which are to

    be properly retained.

    b) The SPU shall keep delivery order register indicating therein company’s delivery order(s) number and date, names and addresses of company' s customers, size, quality and quantity of materials indicated on the

    delivery orders,as also the size, quality and quantity of the materials actually delivered to company’s

    allottee(s) against specific challan number and date.

    c) The SPU shall, for every delivery to the customers, raise four copies of invoices meant for following purposes:

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

    to the transporter of finished goods

    - The triplicate copy being marked as TRIPLICATE FOR ASSESSEE shall be retained by the

    SPU.

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

    - Every invoice shall clearly indicate the amount of excise duty paid. - Every invoice shall invariably bear signature of SPU or his duly authorized representative (for which he

    will attest the signature) as also the signature of the authorized representative of company’s Customer.

    The details of the invoices shall be entered on the reverse side of the delivery order immediately on each

    delivery.

    d) The Tax Invoice (Not for CENVAT) shall also be generated by the SPU in three copies on the stationery of

    RINL through the ERP connectivity provided to it by RINL. For this purpose the SPU shall be required to

    own suitable computers and also make arrangement for Internet connectivity for availing connectivity to

    RINLs ERP System. In the Tax Invoice Just below the word "TAXINVOICE", the Words "NOT FOR

    CENVAT PURPOSES" shall be printed in bold letters.

    - The original copy of Tax Invoice being marked as "ORIGINAL -BUYER'S COPY" shall be handed over to the customer

    - The next copy being marked as "SELLER'S COPY" shall be sent to the concerned Branch. - The extra copy being marked as "EXTRA COPY" shall be retained by the SPU.

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

    along with a copy of the related invoice to the concerned branch.

    19. Liabilities of the SPU:

    a) The SPU shall comply with all the statutory requirements towards fulfilment of all the obligations under all the prevailing labour laws and other applicable laws. The SPU shall indemnify RINL against any claim that

    may be made on RINL arising out of any non-compliance of above statutory requirements by SPU.

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    21

    b) SPU shall be responsible for any injury/damage caused by him or his agents to any man and material at his premises as well as when materials are in transit. The SPU shall indemnify RINL against any claim that may

    be made on RINL arising out of any negligence or otherwise on the part of SPU and/or his agent.

    c) SPU shall not assign any part of this contract to any other SPU/third party without prior clearance and permission from RINL in writing to this effect.

    d) In case of inability on the part of SPU to perform to the full satisfaction of RINL under this contract, RINL

    shall have the right to terminate the contract on serving due notice and appoint another SPU for the same

    job at the cost and risk of SPU .

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

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

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

    negligence of the SPU during the performance of various operations covered by the contract. The decision

    of the company as to the extent of damages and the amount recoverable from the SPU in this regard shall be

    final and binding upon the SPU . No materials will be allowed to be stacked / kept outside the premises or

    on the road within the yard or at places where it might impede the free movement of traffic.

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

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

    same.

    h) In the event of the SPU 's failure or default to provide sufficient equipment and timely labour at any time to do any of the jobs entrusted with him / them under the contract or in the event of the SPU ,unilaterally terminating the contract, the company shall have the right to get the work done through alternate arrangements,

    and all the charges and expenses incurred by the company in this behalf shall be recovered from the SPU either from his/their bill(s) or from any other amount(s) payable to the SPU , either under this contract or any other contract with the Company and /or by encashing the Bank guarantees furnished under this Contract.

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

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

    j) Whenever the contract expires / is terminated, the SPU shall be required to submit the following documents failing which his final payment as well as release of Security Deposit/ Bank Guarantee would be withheld till such

    time the requirement mentioned below are met by him in full:

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

    Compensation to workmen etc.) - No claim certificate in favour of RINL (Annexure-17)

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    22

    In case the SPU fails to submit the above mentioned documents within a reasonable period, the Company would

    be within its right to forfeit / appropriate any amount of the SPU lying with the Company to his credit either under this contract or any other contract towards settlement of the claims of the above mentioned Agencies.

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

    work so defaulted to any other alternate agency at SPU 's risk and costs. The SPU shall immediately pay to the company the differential, if any, in the costs and expenses so incurred by the company, within the time prescribed by the company failing which the company shall recover and appropriate from any amount payable to the SPU either under this contract or any other contract without any reference to the SPU and / or by encashing the guarantees furnished under this contract with the Company.

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

    handover all company's properties and documents including stocks produced out of RINL's material and obtain

    a clearance certificate from RINL before the Security Deposit can be claimed and / or Bank Guarantee custody

    cum Indemnity Bond returned /discharged. The refund of Security Deposit, Bank Guarantee and custody cum

    Indemnity Bond would be subject to his fulfilling the conditions indicated at clause above.

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

    and appropriated by the company and set off against any claims of the company for the payment of any sum of

    money arising out of this contract or any other contract.

    n) The SPU shall pay his labourers (male or female) not less than the minimum wages prescribed by the Minimum

    Wages Act, or such minimum wages as may be prescribed from time to time by the Central Government.

    o) SPU shall perform and observe all the provisions relating to the Employees Compensation Act. Employee State

    Insurance Act (ESI) and all labour and other legislations.

    p) The SPU shall be liable for any injury or death arising out of any accident either within or outside the SPU

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

    employee's compensation Act or any subsequent modification or amendment to the said Act thereof.

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

    q) The SPU shall also carry out and observe the provisions of all other laws, Workmen Compensation Insurance, Third party insurance and other applicable Acts and Statutes in respect of the said operations and also indemnify the company of any liability that may be imposed upon the company for non-observance of the SPU of any of

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    23

    the provisions of the various Laws/ Act /Statutes or for the SPU's failure in ensuring the compliance as

    aforesaid, and shall keep the company indemnified and reimburse and discharge all sums that may be claimed by appropriate authorities in any manner whether as penalty, fine, levy demands or compensation fee, arising out of or consequent upon the breach of the requirements and provisions of any statute(s), Law, Rules and Regulations by the SPU or their representative.

    r) The SPU shall be liable for all complaints and / or claims made by and received from company's customers due to

    any default or negligence on the part of the SPU or his representative or workmen.

    s) The SPU shall provide the representative(s) of the company suitable office accommodation and necessary secretarial assistance in the discharge of his duties.

    t) The SPU shall be further liable for all the losses that might be caused to RINL on account of any of the breach of

    contract or misconduct as stated above.

    SPU will indemnify and keep indemnified RINL against all expenses, losses etc. regarding the same.

    u) Proper security shall have to be made by the SPU (s) at their costs for the safe custody of materials supplied by RINL. Any loss, damage or deterioration whatsoever and/or pilferage in premises/custody of SPU(s)

    shall be solely to the account of the SPU and they will be bound to compensate RINL suitably for such loss, damage and/or deterioration.

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

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

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

    binding. x) Liquidated Damages:

    Due to delay/failure in arranging the finished products by SPU, incase RINLs customers deduct or levy liquidated damages on RINL, then RINL is entitled to recover the same from the bills of SPU.

    20. Banning of Business Dealings:

    a) RINL reserves its rights to ban business dealings if the SPU is found to have committed misconduct and also to suspend business dealings pending investigations. Further, in case the SPU, his partner, member, servant, labour, agent, representative and/or any person working for and on behalf of the SPU is found

    involved in any unauthorized, or wrongful removal of materials not sold or makes any attempt for such removal using the mill capacity for their own production/marketing need of finished product, using RINL logo or reputation or brand name for marketing of their own product produced at other mills, this shall amount to breach of contract as well as misconduct caused by the party and Company shall be entitled to forfeit the Security Deposit and any other amount, money or material that may be lying with RINL at the risk and cost of the SPU in addition to suspension/ banning of the business dealings . No charge will be

    payable by RINL for the suspended business period.

  • raYT/Iya [spat inagama ilaimaToD RASHTRIYA ISPAT NIGAM LIMITED

    ivaSaaKp+Nama [spat saMyaM~ VISAKHAPATNAM STEEL PLANT

    SaaKa iva```k`ya kayaa-laya pTnaa Branch Sales Office Patna

    WEST BORING CANAL ROAD, PATNA-1

    Faona: 0612–2541308 2541086, [email protected]: 0612–2541086 E-mail: [email protected]

    NIT No. VSP/PAT/13-14/SPU Dated :06/06/2013

    24

    b) The decision of the Director (Commercial),RINL or any other person delegated to exercise powers in his absence from duty or due to his non-availability for any other reasons, whatsoever will be final and binding

    on the SPU in all such cases.

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

    21. Responsibilities of SPU upon Completion/Termination of Contract: On completion/termination of the contract for any reason whatsoever, the SPU shall have to hand over all properties and documents belonging to RINL. The unadjusted portion of Security Deposit shall be released by RINL to SPU subject to (i) their production of 'No Demand Certificate' from Railways in favour of RINL (in case of receipt of materials by Railway Wagons), (ii) adjustment of claims/dues by RINL from SPU for unsatisfactory performance/lapses on the part of the SPU, if any, in this or any other contract and

    iii) No pending demands from statutory authorities like Income Tax, Labour Deptt. (in respect of PF, Gratuity, compensation to employees etc.) and the like. This agreement may be terminated by RINL at any time at its sole discretion due to non-performance/

    misutilization by giving 60 days notice in writing. The clauses for non-performance/ misutilization have

    been stipulated elsewhere in the contract.

    22. Losses / Damages:

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

    Transfer Challans are handed over to the SPU by the Company, irrespective of the fact whether the materials are in transit or are actually received by the SPU.

    b) The receipt of materials shall be accounted for by the SPU on the basis of the quantities despatched by the Company as per the Stock Transfer Challans issued by the Company. The SPU shall be accountable to the Company for the entire quantity as mentioned in the Stock Transfer Challans in case of rail, and weight of SPU weighbridge shall be final in case of receipt by road and if any shortage, the RINL transporter shall be

    held responsible for such shortages, STC quantity in case of SPU directly lifts from plant and no claims for shortages would be entertained by the Company other than the yield loss of 5 % or 2% as the case may be. The SPU is to accept the Company's practice of determination of weight for dispatch by the plant/ Stockyards as prevailing from time to time. No allowance shall be given on account of weighbridge tolerance.

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

    Company or firm as security or otherwise. d) The SPU shall not suffer or cause to suffer any injunction and / or attachment and / or appointment of

    Receiver in respect of the Company's materials despatched to / stored by them. e) No cognizance will be taken by the Company of the cases where Railways refuse to accede to the SPU's

    re