OMC HOUSE, BHUBANESWAR TENDER CALL NOTICE NO. 180/OMC/S&M/2013 IRON ORE

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1 Cable: ORMINCORP, Bhubaneswar Tel: , , Fax: 0674-, , The Odisha Mining Corporation Ltd. (A Government of Odisha Undertaking) ( A Gold Category State PSU ) OMC HOUSE, BHUBANESWAR TENDER CALL NOTICE NO. 180/OMC/S&M/2013 IRON ORE Sealed tenders are invited for sale of various grades of sized Iron Ore being produced at different iron ore mines of OMC Ltd. at Barbil, Gandhamardan & Daitari Region in Keonjhar District and Koira Region in Sundargarh District (Odisha) with specifications, terms and conditions as detailed below. The bidders are required to submit their sealed quotations in the Tender Drop Box of Sales & Marketing Section of OMC Ltd, Bhubaneswar by 1.00 PM on TECHNICAL BID (Technical Bid Envelope): The Technical Bid sealed envelope containing Technical Bid Format duly filled in along with the following documents :( legible/clear copies to be submitted) i) Memorandum & Articles of Association of the Company or/and DIC Registration Certificate. ii) IBM Registration Certificate under Rule 45 of MCDR (Amendment) iii) Copy of Sales Tax Registration Certificate (VAT/CST/TIN). iv) No objection certificate (Consent to establish) / Consent to operate from State Pollution Control Board indicating utilization of Iron Ore. v) Tender Notice signed in each page (with seal) as token of acceptance of terms & conditions. vi) EMD for requisite amount in shape of DD. (separate DD for each item quoted). (All the bidders must submit above documents positively, failing which the bid shall be rejected) PRICE BID (Price Bid Envelope): The Price Bid sealed envelope shall comprise of the price quoted (item wise per WMT) by the tenderer for each desired item only in the prescribed Price Bid format. *Bidder can file only one tender document for desired item(s) in respect of their firm. Submission of more than one tender document shall not be accepted and all the bids (if more than one) submitted by the bidder shall be rejected. * The price bid of the bidder shall not be opened in the event they fail to submit the documents, as asked for in Clause- 1 above. In such case, the bidder shall be considered as technically disqualified and their sealed price bid shall be refunded along with the EMD amount. * The Technical Bid and Price Bid format should be typed written (except signature). Any deviation from above in submission of bids, the same will be subject to rejection. The schedule for opening of Technical & Price Bid Opening of Technical Bid : At 3.00 PM on Opening of Price Bid : At PM on Both the technical bid and price bid will be opened in presence of the participants or their authorized representatives. However, opening of bids shall not be affected even if some participants or their authorized representatives are not present during the event.

2 Description of Material, Quantity & Earnest Money Deposit (EMD): Item Description of Material No. A. BARBIL REGION A1 B B1 Barpada Kasia GANDHAMARDAN REGION B2 5 18mm, (+64%Fe) Sponge grade CLO, Basis- 64%Fe C. KOIRA REGION C1 D. DAITARI REGION D1 Quantity (in WMT) Earnest Money Deposit 10,000 ±10% Rs.18,50,500/- (Rupees eighteen lakh fifty thousand five hundred) only. 10,000 ±10% Rs.18,50,500/- (Rupees eighteen lakh fifty thousand five hundred) only. 5,000 ±10% Rs.12,51,750/- (Rupees twelve lakh fifty one thousand seven hundred fifty ) only. 40,000 ±10% Rs.83,02,000/- (Rupees eighty three lakh two thousand) only 8,100 ±10% Rs.14,17,905/- (Rupees fourteen lakh seventeen thousand nine hundred five ) only. 2. ELIGIBILITY CRITERIA: Any agency involved in any kind of mining activities in a mine of OMC Ltd, shall not be eligible to participate for the items of the same mines/region in this tender. Any agency having Iron Ore lease shall not be allowed to participate in the tender. (i) For Item No., A1,B1,B2,C1 & D1, the bidders should have their own Sponge Iron, Pig Iron/Steel Plants and shall use sponge grade Iron Ore, B.F. grade Iron Ore for their own use. The ore will be supplied from different Iron Ore mines to the Steel Plants, Sponge or Pig Iron units directly. The basic price per WMT (ex-mines) shall be quoted for any particular grade for Barbil, Gandhamardan & Koira Regions. The base price per WMT (Ex-DRS) shall be quoted for the item of Daitari (ii) State based iron ore crusher units may participate in the tender for item A1 (iii) Traders will not be entertained for participating in the above items. Offer for part quantity against any item(s) shall not be accepted and the bid shall be rejected. The H1 bidders (Other than existing buyers) may be allotted tendered quantities, subject to successful verification of their unit. EARNEST MONEY DEPOSIT (EMD): The bidder has to deposit Earnest Money in shape of Demand Draft as per EMD amount indicated against each item(s) drawn on any Nationalized/ Scheduled Bank at Bhubaneswar in favour of Odisha Mining Corporation Ltd., Bhubaneswar, payable at Bhubaneswar along with the tender. No interest shall be paid for EMD. The DD against EMD for each item, has to be submitted separately in Technical Bid in order to facilitate scrutiny & quick refund of EMD amount to unsuccessful bidders. In the event, the H1 bidder fails to lift minimum 90% of allotted quantity (base quantity) against above tender participation within the

3 stipulated time in conformity with tender norms, the EMD deposited with OMC by the buyer will be forfeited and no further correspondence in this regard with be entertained. However, if the reason of non-lifting/ shortfall in lifting is found to be not attributable to the buyer, then OMC may decide to refund the EMD. The bidder will put the seal of the company/ mention the name of the agency at the rear side of each D/D deposited towards EMD. In order to facilitate refund of EMD by hand to the unsuccessful bidders on the date of opening of tender the bidder may submit an authorization letter through the bearer to take back the D/D by hand. The EMD of unsuccessful bidders shall be refunded within 15 (Fifteen) days by post after opening of offers in absence of such authorization. 4. VALIDITY OF OFFER: Bidders may keep their offer valid at least for 30(thirty) days from the date of opening of tender. 5. PLACE & MODE OF DELIVERY: Ex-mines at various Iron ore Mines of OMC Ltd. at Barbil, Gandhamardan & Koira Regions. The buyer will arrange to lift materials by truck from mines in his own arrangement. The mode of delivery is Ex-DRS (Daitari Rly. Siding) for 10-40mm +62% Fe CLO of Daitari origin. The responsibility of OMC Ltd ceases once the material is loaded into truck/rake. The buyer shall keep the seller indemnified for any liability which may arise during the contract or thereafter on account of loading, transport and such other matters as are thereto to their exercises. As per Environment Protection Act-2006 & guideline the buyer should ensure that the loaded trucks are to be covered with tarpaulin during transport. 6. DELIVERY PERIOD: By 31/12/ PAYMENT TERMS : The buyer has to lift the material against advance DD/Banker s cheque/ Direct credit to OMC Bank Account duly approved by the concerned Regional Office, OMC Ltd., and as per prevailing sales practices and procedure of OMC. Payment has to be made at Regional Offices. 8. SAMPLING & ANALYSIS: Sampling and analysis shall be carried out by a reputed public analyst. The report of public analyst will be binding on both buyer and seller. 50% of the analysis charges will be borne by the buyer. The buyer may depute their representative for supervision of sampling & analysis and stock of ore to be supplied to the buyer for their satisfaction and to avoid any future complicacy regarding quality and physical specification during the process. The responsibility of OMC Ltd., ceases once the ore is loaded in to the carrier and no complain in this regard shall be entertained. 9. PRICE : The buyer has to quote the Ex-Mines Price per WMT (Wet metric ton) for desired item(s) of iron ore separately on ex-mines/stockyard basis including royalty for ore of Barbil, Gandhamardan & Koira Region. However, the buyer has to quote price per WMT including royalty on Ex-DRS basis for 10-40mm +62% Fe BF CLO of Daitari origin. The price may be offered on percent of Fe basis and for unit scale fraction prorata. 50% analysis charges and other Govt. statutory duties will be charged extra. The buyer has to arrange loading and transportation etc. of their own. Unitage shall be charged on unit scale fraction prorata basis. The Price Bid including quoted price should be typed written. The buyer has to arrange loading and transporting etc of their own.

4 OMC may provide extra service/ facility/ obligations/ infrastructure etc., if required, on chargeable basis. The hand written Price in Price Bid shall be summarily rejected. 10. SALES TAX: Sales Tax/VAT as applicable shall be charged extra. To avail concessional rate of sales-tax, buyers are required to deposit required form duly filled-in, with OMC failing which sales tax in full rate will be recovered from the buyer. 11. INCOME TAX: TCS shall be collected from the buyers under section 206C of the Income tax Act 1961 as applicable. The buyers who purchases Iron Ore for the purpose of manufacturing and not for trading are required to submit the Form 27C duly filled in at the time of sale order / payment whichever is earlier with OMC for non-collection of TCS. 12. WELFARE CESS: Instead of OMC paying Labour Welfare Cess to buyers of ore separately, applicable labour welfare cess, as payable by OMC to the buyers of ore shall be deducted from the sales invoice of each buyer. The buyer shall deposit the cess duty with the welfare commissioner in due time and produce documentary evidence in support of such payment to respective Regional Office of OMC Ltd. every month. Any deviation to the above shall be liable for cancellation of the supply order by OMC Ltd. 13. WEIGHMENT : Weighment as recorded in OMC weighbridge or in other weighbridge as approved by OMC shall be final for the purpose of payment. However, R/R weight is final for the ore to be supplied from DRS. 14. DISPUTE: The decision of the Chairman-cum-Managing Director, OMC Ltd, shall be final on any dispute arising out of the above deal. 15. SPECIAL CONDITION: * The tender is made primarily to establish the best market prices for various grades of iron ore. OMC will allot various grades of iron ore following allotment procedure of Corporation at prices to be decided through this tender and related prices of other grades after supply of tendered quantities to approved highest bidders, subject to permission/ clearance from authorities. Therefore, after allotment of tendered quantities to respective approved highest bidders, this tender will extinguish. * The tenderer will be allowed to lift only the quantity for which tender is floated. In case the eligible highest bidder is a new buyer of OMC, he will not have the right to be enlisted as a regular buyer and allotment of tendered quantity to new H1 bidder shall be made subject to successful plant inspection. Successful Plant inspection includes subsequent compliance and clarification, if necessary relating to submission of additional information/documents to prove bonafideness and authenticity of the unit apart from documents asked for prior to supply of Iron Ore as successful H1 bidder. In such case, if the compliance of the H1 bidder agency is not up to the satisfaction of OMC, the supply of tender quantity of Iron Ore to the said H1 bidder can not be made and OMC Ltd, shall have the right to be free of its tender obligations and take further suitable decision.

5 * However, OMC management reserves the right either to continue or discontinue further supply in future to H1 bidders who are new buyer to OMC. Existing buyers becoming accepted highest (H1) bidder in the Price Setting Tender (PST) will be allotted with tendered quantity, over and above their regular/quarterly allotment. * The buyer shall carryout loading and transporting of materials and comply strictly with all provisions of Mines Act 1952, Rules-1955, Metalliferous Mines Regulation-1961, MMRD Act, Payment of Wages (Mines Rules), Maternity benefit Act of 1961, Industrial dispute Act-1947, M.V.Act etc, and all other government/statutory regulations, decisions, recommendations prevailing and applicable from time to time. * The highest quoted price (H1) for different grade/type/item of ore received through this tender shall be scrutinized by OMC Ltd, as per prevailing market condition. OMC has got right to accept or not the highest quoted price received through this tender for any grade/type/item of ore tendered, if such price is considered as not commensurate with the market condition. * The buyers allotted ore/material, shall submit a true copy of the said contract with signature in each page to concerned Regional Manager prior to execution of SO (Sales Order), as a token of acceptance of terms and conditions of contract. * The buyers are expected to maintain peace and tranquility during the course of lifting of iron ore under a Sales contract. Any buyer found to have creating trouble resorting to coercive measure including threatening of staff and officer of the mines and undertaking violent action shall be liable for cancellation of ore allotment, sale order and delivery order. Besides above, action as per the law shall be taken against the errant customer. * Further, the buyer should ensure registration of his establishment u/s 7 of the Contract Labour (R&A) Act, 1970, so that the contractors engaged by you for loading and transportation work possess valid license u/s 12 of the Contract Labour (R&A) Act, to avoid any legal complicacies in the matter. The above statutory requirement should strictly be adhered to and a copy of the valid license should be deposited with respective Regional Manager and Manager (Mining) of the concerned mines prior to executing loading and transportation work of ore/minerals allotted to you, failing which supply of ore shall not be allowed. 16. AUTHORISATION OF AGENTS/ REPRESENTATIVE: For the bid submitted by agent/representatives, the name of their principal is to be furnished along with a letter of authority issued by the Principal authorizing the agent/representative to participate on their behalf. 17. TENDER PAPER: For the purpose of filing tender documents, this Tender Call Notice along with Technical & Price Bid format to be down loaded from OMC website ( for filing of tender documents. No provision exists for sale of tender papers. 18. OMC management reserves the right to defer/accept/cancel the whole or part of tender without assigning any reason thereof. ADDL.GENERAL MANAGER (S&M)

6 1. Name of the Agency : 2. Address (with Pin Code) : FORMAT FOR TECHNICAL BID Different grade/size of Iron Ore (Date of Submission by 1.00 PM 24/09/2013) Registered Office Address Plant Address 3. Type of Plant : Steel Plant/Pig Iron/Sponge Iron/ Crusher. (Strike out which is not Applicable) 4. RTGS / Core Banking Details (I) In case the Customer wants refund of Commitment Amount/ EMD through RTGS the following details may please be furnished. a) Name of the Bank : b) Branch Code No. : c) Account No. of the customer : d) IFSC Code of the Bank : (II) The customer having account in State Bank of India/ Andhra Bank may submit their Account No. and Branch Name and Code for transfer of funds through core banking. 5. Name of the Contact Person : Telephone No. : Mobile No. : Fax No. : E.Mail : 6. Details of Documents enclosed : (legible/clear copies to be submitted) i) Copy of Memorandum & Article of : Association of the company or/and DIC Registration Certificate (ii) IBM Registration Certificate. (iii) Copy of Sales Tax Registration Certificate(VAT/CST/TIN) : (iv) Copy of No Objection Certificate : (Consent to establish)/ consent to operate from State Pollution Control Board. (v) Tender Notice signed in each page as token of acceptance of terms & conditions. (vi) Details of Earnest Money Deposit (EMD) against desired Item(s) as per table below (All the bidders must submit above documents positively, failing which the bid shall be rejected) contd.p-2/

7 Description of Material, Quantity & Earnest Money Deposit (EMD): Item Description of Material No. A. BARBIL REGION A1 Barpada Kasia Name of the Bank DD No. & Date Amount (in `) B B1 B2 C C1 GANDHAMARDAN REGION 5 18mm, (+64%Fe) Sponge grade CLO, Basis-64%Fe KOIRA REGION D.DAITARI REGION D1 I/We..,.. (Name of the Agency) have enclosed Tender Call Notice (downloaded from website) duly signed by me as token of acceptance of the schedule terms & conditions. Further, we declare that we do not possess / own any Iron ore lease. Iron ore procured from OMC shall be utilized in our plant for production of sponge iron, pig iron, sinters, pellet/steel finished products as an end user. I /We undertake to comply subsequent additional quarries / documents in support of proof, if necessary, by OMC Ltd. during / after successful plant inspection. Place: Date : Signature of the Agency (Name/Designation of authorized signatory with company s seal/pad) NB: Format should be filled by typed written (except signature). Hand written format will be summarily rejected.

8 FORMAT FOR PRICE BID Different grade/size of Iron Ore 1. Name of the Agency : 2. Address (with Pin code) : QUOTED PRICE (should be Typed written) : Item No. A1 B1 B2 C1 D1 Description of the Material Barpada Kasia 5 18mm, (+64%Fe) Sponge grade CLO, Basis-64%Fe Quoted Price/WMT (Including Royalty) (in Rs.) Signature of the Agency (Name/Designation of authorized signatory with company s seal/pad)