Limestone Mineral Auction

Transcription

1 Limestone Mineral Auction Queries & Responses To Tender Document (Notice Inviting Tender dated November 9, 2015) Part I Commissioner of Geology and Mining Industries & Mines Department Government of Gujarat December 30, 2015

2 Clause 1.3 of TD: Important Information As per Tender Document. What is the reliability of data if the state government is not sure about the correctness of the information such as basic bore hole data which is used for Further, it is clarified that G2 level exploration has been reserve estimation and finally reserve price carried out by GoG as per Minerals (Evidence of Mineral 1 Contents) Rules, It may be mentioned that all the information given in the tender documents are true, accurate and not misleading. Executive Summary Table1: Summary Resource classification read with Clause 2.11 of Tender Document: Goyla Block Can a Company apply for part of a Block i.e. part of 68 Million Tonnes (Total Geological Resource) for Goyla Block? Or one of the two Sub blocks? No, a company cannot apply for part of a block. E auction will be as per conditions of the Tender Document. 2 For a small or mid sized company, the cash outflow will be huge & investment will be blocked and it may not be possible for it to utilize the resources in 5 10 years. If a Bidder requires less quantity of resources, can it participate in e auction and can it succeed in getting the Block? Our prayer is to amend the Bid documents to enable such Bidder to participate in bidding even for part of a Block. This will also be in line with Government policy on promotion of small & mid sized industries. Clause 3.5 of TD: 'The minerals extracted under the mining lease shall: i. be utilised solely for the Specified End Use; and ii. not be sold or transferred or otherwise disposed of, either directly or indirectly.' As per Section 12(A) of the Act. 3 Though minerals can not be sold or transferred, can Mineral Block be transferred to any third party for specific end use for which mining lease has been granted. In such a case, whether fresh approval for mining lease would be required. It is not clear whether Bidder would be entitled for transfer of mineral block to any third party for which approval has already been granted. We pray before you to amend the Bid documents accordingly. 4 Clause 3.6 of TD: 'While a bidder can submit bid for more than one limestone block out of five limestone blocks whose names are mentioned in Notice Inviting Tender, it is not permitted to become Preferred Bidder for more than one limestone block out of Mudhvay Sub block A, Mudhvay Sub block B and Mudhvay Sub block C.' Why such condition is required if preferred is ready to develop for high capacity of end use plant. May be deleted Clause 3.6 of the Tender Document stands deleted as per 'Corrigendum No. 1 to Tender Document issued by Government of Gujarat' dated December 30,2015. Accordingly, the bidder shall be eligible to become Preferred Bidder for any number of blocks subject to compliance with applicable laws. Page 1 of 12

3 Clause 4.1 of the TD: Details provided in the Information Memorandum Land Acqusition and obtaining clearances is the sole Assistance to successful bidder for land acquisition and obtaining clearances: responsibility of the Preferred Bidder. However, GoG Please suggest whether the Government of Gujarat will provide assistance in land acquisition and matter relating to predevelopment activities of the may provide necessary support wherever required. Limestone Blocks. 5 Indicative Clearances: Information Memorandum Government should obtain and provide these clearances from respective departments. As these approvals are consequent upon the grant and necessary for operations for which lease is granted, Govt. full involvement and accountability for obtaining these approvals will be highly solicited. We pray before you to amend the Bid documents accordingly. 6 Clause 4.1 of the TD: Details provided in the Information Memorandum: Indicative Clearances Possession of Land: Please clarify, whether any land is acquired or under the possession of any private party or some portion is in possession of the land owners? Details provided in block specific Information Memorandum 7 Clause 5 of the TD: Eligibilty Criteria If Company along with its JV Partner forms a Joint Venture Company with same end use but two different end use plants each in the name of JV Partner, both end use plant are operating under each company, then whether the Joint Venture Company is eligible to bid, if yes then the total requirement for both end use plants can be cumulatively taken into consideration and one single bid can be submitted in the name of Joint Venture Company, Please clarify? No, since the Specified End Use Plant has to be in the name of the Bidder i.e the Joint Venture Company, as per Clause 2.15 of the Tender Document. Clause 5(b) of the TD: Eligibility We request you to include Foreign holding company also in eligibility criteria while deciding the net worth criteria. Both Rules and Bid documents be amended accordingly. As per Section 5 of the Act and Schedule I of Mineral (Auction) Rules, Explanation: In case an applicant is a subsidiary of another company, whether incorporated in India or outside India, the net worth of such holding company may also be considered. It will be necessary for a medium sized company, whose majority shareholding are held by a foreign company. The proposal is also in line with Govt. policy on FDI. We pray before you to grant above relaxations and amend the Bid documents accordingly. Page 2 of 12

4 Clause 5(c)(i) of the TD: Conditions relating to Specified End Use Plant As per Section 12(A) of the Act. For a new project, Suppose for any reason, proposal is not materialized or project did not start. For example, clearances from appropriate authorities were not forthcoming. In such a situation, can the mineral Block be transferred to any third party. What are the exit option? 9 It is in the interest of the Company to know about repercussion on happening of such events or for any event, not in control of Bidder, for which it may not be possible to continue with mining block granted initially in favour of Bidder. We pray before you to amend the Bid documents accordingly. 10 Clause 5( c) of the TD: Sub rule (3)of rule 6 of Mineral(Auction Rules, 2015 mention Specified end use for Limestone is Cement Plant and the State Government may earmark certain percentage of mines for end use. 1. If the Bidder establishes only clinkerisation unit in Gujarat and Grinding Unit in any other state then the terms of Tender Documents fulfilled or not? 2. If the Bidder is bound to use certain percentage of Limestone to be used in Cement Plant in Gujarat then what is that certain percentage? 1. The Government intends to have cement plants in Gujarat for employment generation. 2.As per Rule 6 (4) of the Mineral (Auction) Rules, 2015, all the minerals extracted under the mining lease for the Specified End Use have to be used within the Specified End Use Plant. 11 Clause No. 5C I of Tender Document: Eligibility Conditions relating to Specific End Use (i)clause specifying location of end use plant in Gujarat does not appear to be reasonable. No other state has put such criteria for eligibility. (ii)we understand that clinker unit alone will be qualified as specified end use plant. Please confirm. (i) The Government intends to have cement plants in Gujarat for employment generation. (ii) No, as per clause 2.14 of the Tender Document read with clause 2.15, the Specific End Use plant will be a plant engaged in the production/ manfacturing of cement. 12 Clause 5 (e) of TD Eligibility Condition Relating to Section 6 of the Act: Maximum Area Restriction This Clause should be terminated. Section 6 of Act does not restrict State Government to issue letter of intent. Relaxation under section 6(1)(b) may be taken after issue of letter of intent. As the provision is not about prior relaxation as in case of section 5(1)(b) where prior approval is required for minerals specified in schedule I. As per the amendment in provision to section 6(1)((b) of MMDR Amendment Act, 2015, the relaxation to a person has been removed & now the central government may increase the limit of area under section 6(1)(b) for a particular mineral, or to any specified category of deposits of such mineral, or to any particular mineral located in any particular area. Hence either the State Government should request in advance to the Central Government for increasing the Limit as it is need of captive consumption. It is in the part of State Government not applicable to individual. The Preferred Bidder may obtain prior approval of the Central Government for issuance of LoI by the State Government. For this purpose, the Preferred Bidder needs to make an application to the Central Government through the State Government, prior to issuance of LOI. 13 Clause 6 of TD: Site Visit Will the Government representative from State Geology and land department shall be available at site? The bidder may send a request to the State Government. The State Government would look into the same accordingly. Page 3 of 12

5 Clause 8.1:Bidding Process Since the query pertains to Rajasthan, Government of In this is case the IBM has specified Sale rate for Limestone in Rajasthan, which is Rs.542/Tonne, in such case the mining plan and annual Limestone Gujarat would not be able to comment on the same. requirement a Bidder s end use plan shall create value difference of initial price offer, since the initial price offered by bidders would vary based on their annual Limestone requirement. In this case the bidder who proposes to extract higher quantity of Limestone would be at advantage and the one who intends to extract less would be at loss, he would be forced to take the initial price offer to the bidder with higher value as the base price. It proposed that a cut off price may be suggested as the base price so that all the bidders get level playing field irrespective of their limestone requirement. The bidder will have option to quote their prices as per individual calculations. 14 Clause 9.1: Reserve Price The rates prescribed by IBM are very high as compared to the actual market sale price and the rate at which Limestone is available is way to very low that the price of Rs. 542/Tonne, therefore the sale price justification for the Rajasthan Limestone blocks may be provided and should be reworked based on the actual market price. The bidders may be allowed to exclude cost of certain fixed infrastructure which may not be useful for the other bidders. 15 Clause 8.1 (A) (e) of TD : First Round of E Auction In case e auction process is annulled due to less nos. of technically qualified bidder and Bid process is started from beginning again after some time, does there be a need of buying fresh tender document again for those bidders who has already purchased the Tender document earlier? In case e auction process is annulled due to less nos. of technically qualified bidder and Bid process is started from beginning again after some time, Bidders who has already purchased Tender Document need not to purchase the tender document fresh or it should be provided free of cost. A bidder has already paid the money to purchase the tender document and he should not be forced to pay the fee two or more times to purchase the similar document. Yes, the bidder would be required to purchase a fresh Tender Document since every auction process is an independant process governed by the respective Tender Documents. 16 Clause 8.A (a): First Round of E Auction No. Date for submission of bid shall be as per Tender Document. For Physical Submission of the original documents 2 working days may be allowed afte the due date for submission of Bid Document online. Since there is a provision of about 3 weeks for examination of the Bids and announcement of Technically Qualified Bidders, sufficient time to be given for postal deliveries at distant places A(a)(ii) and 15.6 of TD: First Round of E Auction Suppose highest initial price offer by various bidders are same then every bidder has to submit at least one bid? As per Rule 9 (4) (b) (ii) of the Mineral (Auction) Rules, Page 4 of 12

6 Clause 8.1 (B) (b) of TD: Second Round of E Auction In case of annulment of auction due to non submission o In case more than one Qualified Bidder has submitted same Highest initial Price offer then what will be mechanism of forfeiture of Bid Security? Whether Final Price Offer, the bid security of all such Qualified the full Bid Security amount of all those Qualified Bidders who has submitted same Highest Initial Price offer will be forfeited or it is distributed as Single Bidders, who have submited the highest Initial Price Bid Security divided by nos. of Qualified Bidders who submitted same highest Initial Price offer? Offer will be forfeited. 18 In case more than one Qualified Bidder has submitted same Highest initial Price offer and e auction process is annulled due to non submission of at least one final price Offer, the Bid Security to be forfeited will be distributed as amount of Single Bid Security divided by nos. of Qualified Bidders who submitted same highest Initial Price offer Since there are more than one qualified bidders who have submitted same highest Initial Price offer, forfeiture of bid security should be equally distributed among all of them. 19 Clause 8.1 (e) of TD: Ranking of Technically Qualified Bidder What is the time frame to decide and continue the Bidding Process and whether the Bidder qualified in 1st Round has to participate afresh Bidder Qualified in the 1st Round may be deemed to be qualified for subsequent continuation of the bidding process As per Tender Document, only the bidders who have qualified the first round (i.e. on the basis of IPO), would proceed to the second round. 20 Clause 8.2 (i): Discovery of New Minerals in the leased area post grant of ML Can Bidder in such a case transfer or sale new minerals to any third party. Clarity should be there for its disposal, as new minerals may not be useful for Bidder for its end use. We pray before you to clarify and if required, amend the Bid documents accordingly. As per Rule 6(4) of Mineral (Auction) Rules, 2015 Page 5 of 12

7 Clause 8 and 9 of the TD: Reserve Price and Initial Price Offer As per Rule 8(1), 8(2) and 8(3) of the Mineral (Auction) What will be the denominations of Reserve Price and Initial Price Offer? Whether it will be quoted in % term OR as absolute value during bidding? Rules, both the Reserve Price and the Initial Price Offer are quoted as 'percentages' and not absolute values. The Reserve Price is a fixed percentage i.e. 5% of Value of Mineral Despatched and the IPO will also be a percentage of Value of Mineral Despatched which should be equal to or greater than the Reserve Price of 5%. 21 For eg. Reserve Price in Tender Document 5%; The IPOs submitted by the bidders shall be quoted as percentages, for instance, 5%, 5.5%, 6.75%,8.1%, 9.5%,10% etc. 22 Clause 8 and 9 of the TD: Value of Mineral Despatched/ Reserve Price: 1. What is the value / quantity of minerals dispatched? How will it be calculated? Whether it will be based on existing capacity of Plant or capacity of Block? If it will as per capacity of Block, what will be the monthly quantity of minerals dispatched? How quantity will be calculated? In case of Goyla Block, what will be the minerals dispatched in a month? Suppose there are two Bidders for Goyla, Bidder A (having plant capacity of 1 mt) and Bidder B (having plant capacity of 5 mt), whether the quantity of minerals dispatched will be different for both the Bidders? 2. The reserve price shall be different at different monthly production. Higher % figure may denote lower absolute value. 3. How the preferred bidder shall be decided merely on the basis of % quoted? 4. What is the value of "minerals dispatched", whether this quantity of minerals dispatched will be based on Company capacity specific or Block capacity specific? For clarity, detailed Formula should be put in the Bid documents It is not clearly mentioned in Tender Document that the value of mineral dispatched to be calculated on which quantity. to enable to understand the percentage to be quoted as "Initial Price Offer". We request you to please clarify above in the interest of all potential Bidders. As per Rule 8(2) of the Mineral (Auction) Rules, 2015, the value of mineral despatched shall be an amount equal to the product of, (i) mineral despatched in a month; and (ii) sale price of the mineral (grade wise and State wise) as published by Indian Bureau of Mines for such month of despatch. It shall be governed by the reserves in the block, and the actual mineral extracted and despatched in accordance with the approved mine plan and is not related to the Bidder's plant capacity. For eg. if the Sale price of the major mineral (grade wise) for relevant state published by IBM for the month is Rs.500/tonne, the mineral despatched by the lessee in a month is 1 Million Tonnes and the percentage share quoted by the bidder is 10% then the amount payable by the ML holder would be ,00,000 10%= 5 Crore Page 6 of 12

8 Clause 9.2 of TD:' It is clarified that payment in accordance with the Final Price Offer shall be required to be made in addition to the payment of royalty As per Clause 9(2) of the Tender Document or dead rent, as applicable.' 23 The payment shall not be applicable to dead rent as it is production based. 24 Clause 10.2 (c ) of Tender Document: Declaration of Successful Bidder The Performance Security BG is supposed to be valid until the expiry of the period for which Mining Lease has been granted. It is suggested that the validity of Performance BG can be one year and shall be renewed annually. Clause 4 (MDPA) Please suggest the period for which the performance security for the initial period is required to be submitted. The Performance Security shall be inititally valid for a period of five years and shall be renewed for a period of five years thereafter, until the expiry of the period for which Mining Lease has been granted. 25 Stage II of Clause 11 : Timetable 1. Only 20 days period has been provided after T1 period to obtain all relevant permissions/ Clearances, which is not feasible/achievable as in case of Environment Clearance Minimum Time is more than one year. 2. T1 period should be clearly defined at present stage as it has very critical role. In cases some permission took more than estimated time which is beyond control of applicant. What will be the mechanism of Time Period in that case? Para 1 Submission of Performance security and Mining Plan along with second installment (10%) of Upfront Payment by the Preferred Bidder to Become Successful Bidder is defined Estimated Time 60 days Para 3 MDPA to be executed between state government & successful bidder upon obtaining all consents, approvals, permits, no objection from various government agencies/departments required under applicable law for commencement of Mining Operation is defines as estimated time T1+70 Obtaining all permission from various Government agencies/departments required under applicable law for commencement of Mine Operation cannot be predefined, it should be Placed as T1 not as 20 days, so T1 should come in Para 3 not in Para 1. While preparation and filing of a Mining Plan in accordance with a system established by state government for preparation, certification and monitoring of such plan, with the approval of Central Government may be completed in 60 days. T1 would get crystallized after fulfilment of all conditions as specified in Rule 10 (3) of the Mineral (Auction) Rules, 2015 to become Successful Bidder. Further, the validity of the LoI shall be as stated in the LOI format to be provided shortly. The bidder may obtain all necessary clearances, approvals etc. within this period. 3. Any specific time limit between stage I and stage II 4. What is the Time Frame for submission of all necessary clearances/approvals from various Govt. agencies/dept. by successful bidder The time frame for submission of all necessary clearance/approvals from various Govt. Agencies/Department by sucessful bidders as mentioned under Part B of schedules would be about 2 to 3 years and may be extended if necessary considering the genuineness of any delays 26 Clause 7.8 read with clause 11 of TD: Pre bid Conference Schedule and Timetable 1. As the last date of sale of Tender document is extended till 7th January. Can the pre bid conference date and other dates be extended accordingly. It is not mentioned about other timetable in the communications received from MSTC / not clear in the website. We request you to please communicate on this. 2. Whether the Time Table given in Clause 11 of Tender Document at page 23 shall be applicable as per the schedule given or it will also be re calculate Refer to Notice for Extension of Date of Sale of Tender Document. Page 7 of 12

9 Clause 12.1 of TD: Upfront Payment to be made by Successful Bidder As per clause of MDPA (Schedule IV of Tender 27 It may please be clarified how the Upfront payment shall be adjusted. Whether the amount payable against the percentage value of mineral dispatched Document) shall be paid less the amount which is to be adjusted for upfront payment. 28 Clause 12.2: Periodic Payments to be made by the bidder Shall we have to pay periodic payment (Monthly) including % quoted only or % quoted + Sale price by IBM. It is not clear and may be clarified in Bid documents. We pray before you to clarify and if required, amend the Bid documents accordingly. As per Rule 13 of Mineral (Auction) Rules Clause (b) of TD: Submission of Technical Bid: Bid Security Please enlighten the basis of considering Bid security of almost 50% of the upfront payment which is on higher side. It should be nominal. As per Tender Document. 30 Clause 13.7 (2) & (3): Rejection of Bid and appropriation of Bid Security Seems to be not fully justified and may be omitted As per Tender Document. 31 Clause 13.12: Validity of Bids In case e auction process is annulled for any reason not attributable to Bidder, what about the payments made by Bidder. Take for example, clearances from appropriate authorities were not forthcoming. Whether any interest is payable to Bidder? It will be in the interest of Bidder to amend the Bid documents as annulment of e auction / biding process may not be fully attributable to Bidder or may be outside the control of Bidder. We pray before you to clarify and amend the Bid documents accordingly. Bid Security will be returned as per Clause 14 of thetender Document. E auction process is concluded on announcement of Preferred Bidder, hence question of other payments do not arise. 32 Clause 13 & 14.3: Submission and Return of Bid Security It should be interest bearing. It is necessary as a security towards payment made by Bidder in circumstances when Bidder, without its fault, is not granted the mining lease or not able to use the minerals or mineral block. We pray before you to clarify and amend the Bid documents accordingly. As per Tender Document. 33 Clause 14.6 : Bid Security For any reason not attributable to Bidder, an opportunity should be given to Bidder to explain his case before forfeiting Bid Security. Exception for reason not attributable to Bidder as per above reasons put at sr. no. 4 & 7 may be put in Bid documents. It will be in the interest of Bidder to amend the Bid documents. We pray before you to clarify and amend the Bid documents accordingly. As per Clause 14.6 of the Tender Document. 34 Annexure I: Format of Bid Letter (Details of End Use Plant) Bidder is eligible to participate in Tender Process either: on the basis of existing Specified End Use plant Or to commence new operations Is it either of two or for both the purpose. And / or. It seems that it is for either purpose and not both. The flexibility for both options should be given in Bid documents. We pray before you to clarify and amend the Bid documents accordingly. Bidder is eligible to participate in Tender Process either on the basis of existing Specified End Use plant Or on the basis of commencement of new plant or both. Page 8 of 12

10 Annexure 1: Format of Bid Letter 1) As per Annexure I (Format of Bid Letter) of the Tender 1) It may please be clarified that whether the bidder participating in the auctioning process, needs to necessarily specify the details of end use plant. Document, details of only existing Specified End Use Plant(s) need to be mentioned in the Bid Letter. 35 2) In case if the bidder wants to bid for the Limestone block first and then decide the location of the plant then can he do so, as in our case the we have to identify the plant location and set up the end use plant after the bidding process. Further is it necessary to specify the plant capacity also, at the time of bidding. 2) The same may be done subject to compliance with Clause 5 ( c) of the Tender Document. 36 Annexure IV Is it stamp charges or stamp duty. If it is stamp charges, then amount of stamp charges required for affidavit in Gujarat may be given, May be deleted Under Entry 4 of Schedule I of the Gujarat Stamp Act, 1958, "AFFIDAVIT, including an affirmation of declaration in the case of persons by law allowed to affirm or declare instead of swearing " attracts a " stamp duty" of twenty rupees. 37 Schedule III (3)(b)(b): Technical details regarding online electronic auction For participation in E auction, whether Digital Signature of class III, as mentioned in Tender document, OR class II will be sufficient? DSC of class III or Class II, is required. Please clarify this. As confirmed by MSTC, we had obtained Class II Digital Signature and successfully registered the same on MSTC platform. In case only DSC II will be required, we will process this immediately. We pray before you to clarify and amend the Bid documents accordingly. As per Schedule III of the Tender Document, Class III Digital Signature Certificate shall be required. 38 Schedule I B d iii of TD Turnover to be mentioned in the Statutory Auditor Certificate should be Gross Turnover or Net Turnover Format of Statutory Auditor Certificate may kindly be shared As per 'Corrigendum No. 1 to Tender Document issued by Government of Gujarat' dated December 30,2015, turnover certificate need not be submitted. 39 Schedule IV of TD (MDPA): Minimum Production Requirement Final Minimum monthly production requirement shall be on the basis of approved mining plan based on the detailed exploration by Successful bidder. If after detailed exploration the anticipated quantity or quality is revised then performance security shall be revised accordingly. Cement grade ROM may be may not be achievable at this target of monthly production. Similarly there may be constrain on various infrastrucres like road, village in area. Minimum Production Requirement is based on yearly production as per mine plan. All these constraints may be addressed in the mining plan. Performance Security shall be revised every five years as per Rule 12 of the Mineral (Auction) Rules, Clause 3 of MDPA: Conditions for Grant of ML Please clarify, what if the mining lease is not granted within 30 days from the date of submission of the Third Installment of Upfront payment, then whether the lease period shall be calculated from such extended date from which the lease agreement is signed beyond the period of 30 days as stated. As per Act and Mineral (Auction) Rules, 2015 Page 9 of 12

11 Clause 8 of MDPA: Minimum Production Requirement Please clarify whether the bidder has to specify the minimum production requirement at the time of bidder as per Schedule E and whether such Minimum Production requirement is binding on the successful bidder for the entire period of the Mining lease i.e. 50 years. What if the bidder is required to amend No, since as per Clause 8 read with Schedule E of MDPA (Schedule IV of the Tender Document), minimum production requirement is linked to approved Mining 41 or alter the minimum production requirement as its Limestone consumption in its end use plant, which is not decided yet. Plan. Clause No. 8.3 (Minimum Production Requirement) of Schedule IV (Format of MDPA This Clause should be terminated. As per clause 8.3 of the MDPA 42 The Successful bidder is already bound by means of appropriation of Performance Security through Schedule E of MDPA in which penalty is fixed in case of not fulfilling minimum production requirement. There is no Logic for clause of termination of Mining Lease as provision of strict penalty is already there. There cannot be two punishments for single offence. 43 Clause 18 of MDPA: Effective Date and Term of ML Since, the mining lease shall be granted for a period of 50 years, as per the Mineral Auction Rules 2015, what if the bidder is unable to consume the entire reserve of limestone within such period, then whether the bidders mining lease shall be extended for such period that he is able to consume the entire reserves of the block which he has successfully achieved through this auctioning, if yes. Then a provision (clause) should be incorporated in the mine lease agreement and bid document to allow further extension of mining lease after 50 years. As per Section 8 (A) (4) of the Act. 44 Clause 19.4 of MDPA Stamp Duty is paid for execution and registration of Mining Lease Deed Document thus there may not be additional Stamp Duty payable for the agreement. This clause may be omitted The MDPA and the lease deed are separate instruments and stamp duty as applicbale on each of them would be payable in accordance with Gujarat Stamp Act, 1958, as amended from time to time. 45 Schedule D (MDPA) Particulars of End Use Plant Please clarify, what if the bidder has till the time of bid submission not identified location of the end use plant, which may be decided at a later date after the allocation of the Limestone block/s. Then in such case, can the bidder for the purpose of bidding suggest name of its current end use plant and then make changes or amendments to the details of end use plant provided at time of bidding As per Annexure I (Format of Bid Letter) of the Tender Document. Page 10 of 12

12 Schedule E (Minimum Production Requirement) of Schedule IV (Format of MDPA) Performance Security would be appropriated as per If the Final Price Offer is less than 24% then whether also Performance Security appropriated will be calculated on basis of on flat 24%? provisions of the Tender Document. Value of Performance Security to be appropriated is % of Average Sale Price (Based on Final price offer) or 24% of Average sale price whichever is lower during the Year of Shortfall (X) shortfall in Production [minimum production requirement (minus) actual annual production). The loss of revenue to the government is only in tune of % of Average Sale Price (Based on Final price offer). So the penalty should only be taken on this loss not on flat 24% basis. As the shortfall in production will not be in the interest of Project Proponent. 46 Schedule E(Minimum Production Requirement) of Schedule IV (Format of MDPA) This Clause should be terminated. Production Planning in Mining Plan is done on the basis of Peak production requirement. It is totally tentative in nature (as per Rule 22(5) (v) of MCR, In case of a captive Limestone mine, the required Limestone production is fully propositional to requirement of Limestone by connected Cement Plant which again is governed by Demand & Supply scenario of Market. The past few years trend shows that Cement Plants run on 70% of Peak Planned capacity. In such circumstances it is against natural justice to impose heavy penalty in form appropriation of Performance Security 47 Schedule E(Minimum Production Requirement) of Schedule IV (Format of MDPA Year Minimum Production Requirement (% of yearly production as per Mining Plan) I to V 0% (for Land Acquisition) VI to VIII 0% (For Plant Commissioning) IX 25% X onwards 50% As per Tender Document, the end use plant should commence operations before the commencement of production of mineral. Further, as per Clause 8 read with Schedule E of MDPA (Schedule IV of the Tender Document), minimum production requirement is linked to approved Mining Plan. As per past experience of Industries minimum 5 years period are required for Land Acquisition for Mines and Plant and further 3 years are required for Commissioning of Plant. 48 Schedule E (MDPA) Minimum Production Requirement What will be our yearly production requirement? It is not clear and may be clarified in Bid documents. Without knowing quantity it is difficult to understand the % and minimum requirement. We pray before you to clarify and amend the Bid documents accordingly. Yearly production will be as per mining plan. Further, minimum production will be as per Clause 8 read with Schedule E of MDPA (Schedule IV of the Tender Document). Page 11 of 12

13 Schedule F (MDPA): Warranties As per Tender Document. 49 This appears to be superflous as necessary cerfication/authentication etc are already provided under various clauses with the Bid document and may cause inhibitions instead of encouraging the transparent auction process. May be omitted 50 General: Preliminary Stakeholders meeting There was a question during the Pre Bid meeting that mining in the Kutch Rann area is not allowed below 10 meter from mean Sea Level. Whether it is true or not? Mining can be carried out subject to clearance from Ministry of Environment and Forest 51 Details of Average Sale Price Details of Average Sale Price which is basis for calculation of Transactions/Payment as Bid Security, Performance Security, Up Front Payment etc. Details of Average Sale price taken for various calculations should be provided in Tender Document. As per Rule 2(1)(m) of Mineral (Auction) Rules 2015, average price (IBM prices available between November 2014 October 2015) of cement grade limestone found in the mineral block is the basis of calculation of Average Sale Price Page 12 of 12