GMDC/BX/SALE/001/14-15

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GUJARAT MINERAL DEVELOPMENT CORPORATION LTD. GMDC/BX/SALE/001/14-15 OFFER FOR SALE OF BAUXITE ON AS IS WHERE IS, WHATEVER THERE IS AND NO COMPLAINT BASIS From Gadhsisa Group of Mines, Dist. Kutch. General Manager [ Tech.] GUJARAT MINERAL DEVELOPMENT CORPORATION LIMITED (A Govt. of Gujarat Enterprise) Khanij Bhavan, Near University Ground, 132 feet Ring Road, Vastrapur, Ahmedabad- 380 052 Gujarat State, INDIA Phone: +91 079 27913111 / 27913501 Fax No: +91 79 27911454 Website www.gmdcltd.com E- Mail geo@gmdcltd.com.

GMDC/BX/SALE/001/14-15 Offer for SALE OF BAUXITE ON as is where is, what ever there is and no complaint basis from various mines of Gadhsisa Group of mines, Gadhsisa, Dist. Kutch. 1) Location : Various Mines of Gadhsisa Group, Gadhsisa, Dist. Kutch 2) Availability of details : On web site www.gmdcltd.com, 3) Last Date and Time for Receipt of Bids : 18/07/2014 15.00 hrs. at our corporate office, Ahmedabad. 4) Bid Opening and Time 18/07/2014, 15.30 hrs. at 7 th Floor, our corporate office, Ahmedabad Note : No conditional offer will be accepted and will be rejected out rightly.

TERMS AND CONDITIONS. 1. Scope of work The bidder have to lift the quantity of < 52% AL 2 O 3 content Bauxite (herein after referred to as Bauxite ) produced from mines of Gadhsisa Group on as is where is, what ever there is and no complaint basis for their captive use only. The available approximate quantity is given below in clause no. 2. The bidder have to deploy their own manpower and machinery for loading and transportation of bauxite from respective mines of Gadhsisa Group. Loading of bauxite and weighment of the trucks would be permitted strictly during office hours on all working days only. In case of any exigency, however, the bidder will have to take prior permission of General Manager (Project) for the loading and weighment of bauxite trucks outside office hours and all relevant expenses incurred by GMDC in this regard shall be borne by you. The decision taken in this regard by the General Manager (Project) shall be final and binding upon you. 2. Mine wise approximate available quantity ( in MT) : Goniaser Mine 44,528 Ratadia Nagrecha Mine 17,848 Roha Kotda mine - 7,859 Nandra mine - 9,828 Naredi-II mine - 22,751 Daban Wamoti - 54,210 Balachod - 19,385 Wandh -1-34,732 Total - 2,11,141 3. Eligibility : The bauxite shall be sold to captive users of bauxite having a manufacturing unit located in Gujarat State. The bidder has to quote the required quantity based on their annual plant production capacity only. Under any circumstances GMDC will not supply

quantity excess to actual requirement of bauxite based on their annual plant production capacity. The successful bidder shall not export bauxite in any form to foreign countries or re-sale to any other party within the country in any form. Copies of financial statement i.e. balance sheet of last three financial years duly certified by CA should be provided i.e F.Y. 11-12,12-13,13-14. The bidder can submit the same from the date of incorporation, if it falls between 1 st April 2011 to 31 st March 2014. 4. Average Specifications of bauxite Avg. Bauxite Specification : Al 2 O 3-40 51.99 % SiO 2 - Max. 10 % GMDC will not be held responsible for any quality complaint once the material is removed / dispatched from Gadhsisa group of mines. 5. Quantity required by bidder : 6. Rate : Bidder has to mentioned the quantity required in their bid. The basic rate of bauxite is Rs. 960/- PMT Ex. Mine plus royalty and applicable taxes. 7. Security Deposit : The bidder has to deposit Security Deposit amount equivalent to 20% total value of bauxite required (i.e. 20% of basic rate x quantity ) by way of Demand Draft or through Bank guarantee from any nationalized Bank at Ahmedabad or from banks approved by Govt. of Gujarat from time to time (except Co-operative Bank) in the form and manner acceptable to the Corporation in favour of Gujarat Mineral Development Corporation Ltd., Ahmedabad failing which his offer shall be treated as invalid. This amount shall be refunded after 30 (thirty) days after the execution of the order satisfactorily and no interest shall be paid. In the event, bidder fails to execute the contract/agreement with respect to sale order issued to them then the amount deposited with GMDC by the bidder/agency as SD will be forfeited. The validity of Bank Guarantee shall be valid for six months from the date of submission of the offer i.e. upto 30/01/2015.

8. Payment terms for obtaining Delivery order. Advance payment by way of Demand Draft in favour of GMDC Limited payable at Ahmedabad, drawn on any Nationalized Bank or through RTGS for obtaining Delivery orders. The successful bidder has to lift the material as per the delivery schedule given in annexure 1. In case of any change in the directives / rules of the Central / State Government regarding sale or delay in granting the permission for sale of bauxite and execution of work related thereto, the same shall have to be strictly adhered to by successful bidder and shall be binding upon him and GMDC will not be responsible for any compensation for any damages suffered by successful bidder due to such changes or delay. 9. Royalty and Taxes: GMDC will recover the applicable royalty and taxes as applicable from time to time at the time of issuance of Delivery Order. The royalty shall be applicable and recovered as per the Central Government rates of Royalty and Dead Rent vide Official Gazette notification number GSR 574 (E) dated 13th August 2009 and GSR 575 (E) dated 13th August 2009 respectively, and subsequent notification issued from time to time and also in future. For bauxite dispatched for extraction of alumina and aluminium, the rates of royalty is linked to the international benchmark metal prices and dispatched for non metallurgical uses, royalty would be levied on ad valorem basis as per the national benchmark price published by Indian Bureau of Mines (IBM) from time to time. GMDC will collect the adhoc royalty amount per MT from bidder at the time of issuance of Delivery order. The actual royalty amount shall be calculated as per above said notification and differential amount shall be recovered from the bidder, if any as and when IBM will published the sale price of different grade of bauxite. The successful bidder on closure of the contract shall submit irrevocable indemnity bond valid up to a period of one year on stamp paper of appropriate value clearly stating inter-alia that the successful bidder shall continue to indemnify GMDC against any kind of royalty difference become payable as notified by the Govt. of India or competent authority in this behalf from time to time.

10. Validity of the offer : The validity of the offer shall be 90 days for the date of opening of the bid. 11. Corrigendum : Corrigendum if any shall be uploaded on www.gmdcltd.com only. Please note that there is no provision to take out the list of parties downloading the offer document from the above referred website i.e www.gmdcltd.com. As such bidders are requested to see the website www.gmdcltd.com once again before due date of offer opening date to ensure that they have not missed any corrigendum uploaded against the said offer after downloading the document. The responsibility of downloading the related corrigenda, if any, will be that of the downloading parties. No separate intimation in respect of corrigendum will be sent to bidder who down loaded the document from the website as information in this respect will not be available to website. 12. Weighment Weighment of bauxite will be carried out at our weigh bridge located at our Mines or our authorised weighbridge and the quantity recorded shall be considered as final for all transactions. 13. Liquidated Damages : The successful bidder will be assigned time schedule at the time of execution of agreement. The successful bidder shall have to lift the Bauxite quantity as per the time schedule of delivery. Failing which the liquidated damages shall be leviable at the end of contract on the shortfall on the assigned lifting quantity of bauxite at the rate of 10% of the basic sale price per MT 14. GMDC reserves the right to defer/accept/divide/cancel the offer without assigning any reason thereof. 15. LEGAL JURISDICTION AND ARBITRATION 15.1 The matter relating to any differences arising out of this agreement shall be subject to the exclusive jurisdiction of Ahmedabad only.

15.2 All questions, disputes, differences whatsoever which may at any time arises between the parties to this contract in connection with the contract or any matter arising out of or in relation thereto, shall be refereed to arbitration as per the provision of Arbitrations and Conciliation Act. 1996 and the venue of the arbitration proceedings shall be at Ahmedabad only. 16 Compliance of Statutes The bidder will strictly abide by all the laws governing employment, payment of wages, Safety and welfare of their labour and staff and provision of Minimum Wages Act, PF/ Gratuity Act, the Emplyee s Compensation Act, Contract labour (Abolition and Regulation) Act, the Mines Act, the Indian Explosives Act, Mines Creche Rules (in case employing female workers), Industrial Dispute Act, Maternity Benefit Act, Bonus Act and other Statutory provisions as existing now or as may be introduced later as well as those orders of Govt. of India or State applicable to GMDC and the Rules and Regulations framed under the said Acts. If any amount becomes payable by GMDC as a result of any claim or application in terms of the provisions of the said Acts and the Rules and Regulations, Bylaws or the Orders made thereunder, such amounts shall be recoverable from bidder. Any consequences arising out of non-compliance of Safety Provisions will be at bidder s sole risk and cost. The bidder will also have to maintain all the statutory registers under the above Acts and Regulations and shall submit the same on demand by the Mines Manager / General Manager (Project). 17 Non-fulfilment of terms and conditions of the contract 17.1 If the Contractor fails to carry out the work as per terms and conditions of the contract to the satisfaction of the CORPORATION, CORPORATION shall be entitled to forfeit the security deposit paid by the Contractor. 17.2 Likewise, if the Contractor does not fulfill the terms and conditions of the contract and does not carry out the work up to the entire satisfaction of CORPORATION, CORPORATION has the right to forthwith terminate the contract at its sole discretion, without assigning any reason, Under such events, the CORPORATION shall be entitled to forfeit the security deposit paid by the Contractor. 17.3 For any reasons, if it is required, the CORPORATION reserves rights to cancel terminate amend and / or alter the contract and / or bifurcate and / or reduce the contract work at any time without giving any notice to the Contractor and without incurring any responsibility. For such cases, Contractor shall have to take away

his labour, tools, tackles, machinery, equipment etc. and shall leave the site at once or shall have to carry out the instructions of the CORPORATION. 17.4 In case of any change in the directives / rules of the Central / State Government regarding sale of bauxite and execution of work related thereto, the same shall have to be strictly adhered to and shall be binding upon you, GMDC will not be responsible for any compensation for any damages suffered by you due to such changes. 18 Force majeure Force majeure is herein defined as natural phenomena such as floods, drought, earthquakes and epidemics, declaration of war, change in Govt. policies, strikes, lockouts etc. In such conditions of force majeure, both the parties can claim a force majeure but they are obliged to inform the either party within 10 days in writing on the date of commencing and again ending of the force majeure. Under the circumstances of force majeure stated above, the contract in terms of period can be extended by period equivalent to the loss of time due to force majeure. The decision regarding occurrence of force majeure to be considered shall be taken jointly. 19 For any dispute arising out of content of this document or interpretation of any terms thereof, the decision of the Hon ble MD GMDC, shall be final and binding upon Bidder. 20 Insurance The bidder will be required to ensure Third Party Insurance cover of all their personnel, vehicles and employed and deployed throughout the contract period.

DETAILS TO BE FURNISHED BY THE BIDDER Name of Bidder : Address of manufacturing plant Contact person name and contact number Annual manufacturing capacity of plant Annual requirement of bauxite based on plant capacity ( In MT) Signature of bidder with date

OFFER BID GMDC/BX/SALE/01/14-15 FOR SALE OF BAUXITE AVAILABLE AT GADHSISA GROUP OF MINES IN KUTCH DISTRICT ON AS IS WHERE IS,WHAT EVER THERE IS AND NO COMPLAINT BASIS. Name of Bidder : In Figure Quantity required in MT. In Words Note : Royalty and taxes as applicable at the time of delivery shall be charged extra. GMDC reserves right to reject any offer or to award contract to one or more bidders as it deems fit. If quantity in words does not tally with quantity in figure then the quantity which corresponds to the quantity in words shall be taken as correct. Signature of bidder with date

Annexure -1 Tentative Lifting (delivery) Time Period Sr. NO. Quantity ( In MT) Tentative Lifting Period ( in days) 1 0-25,000 15 2 25,001 to 50,000 25 3 50,001 to 75,000 35 4 75,001 to 1,00,000 45 5 1,00,001 to 2,20,000 60 Note : The above lifting period is tentative and GMDC reserves the right to change/modify/alter the above lifting time period based on actual quantity demanded by the bidder.