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GLOBAL TENDER

NO. FPJ/4005/PCO/06 Dated 07.08.2006

MPM

THE MYSORE PAPER MILLS LTD., BHADRAVATHI

THE MYSORE PAPER MILLS LTD., PAPER TOWN,

BHADRAVATHI-577 302

Tel: 00 91 (0) 8282-270741 Fax: 00 91 (0) 8282-270741/270937 E Mail: mpmbdvt@sancharnet.in

TENDER DOCUMENT

FOR

IMPORTED NON

COKING STEAMING

COAL

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I N D E X

PART I SECTION 1 – INSTRUCTIONS TO BIDDERS SECTION II - GENERAL TERMS & CONDITIONS SECTION III – TECHNICAL SPECIFICATION SECTION IV - ANNEXURES SECTION V– BIDDERS PREQUALIFICATION REQUIREMENTS. PART II PRICE BID FORMAT

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COAL TENDER – PARAWISE INDEX

Para No. Title Page No.

SECTION -1-INSTRUCTIONS TO TENDERERS 5 1.1 INSTRUCTIONS 6 1.2 SYSTEM OF MAKING BID AND ITS SUBMISSION 8

1.2.3 SUBMISSION OF BIDS – ON LINE 10 1.3 EMD/BID GUARANTEE 10 1.4 SIGNATURE ON BIDS 11 1.5 SIGNING AND REFERENCING OF OFFER SHEETS 11 1.6 VARIATION IN QUANTITY 11 1.7 PRICE & SPECIFICATIONS 11 1.8 TECHNICAL INFORMATION 12 1.9 BIDDERS QUALIFYING REQUIREMENTS 12

1.10 CONCLUSION 12 1.12 SPECIMEN FOR PRICE BID 12

SECTION-II-GENERAL TERMS AND CONDITIONS 13 2.01 SCOPE 14 2.02 DEFINITIONS 14 2.03 EXECUTION 14 2.04 SELLER'S RESPONSIBILITY 14 2.05 PRICE 14 2.06 BASIS OF PAYMENT & PRICE ADJUSTMENT 16 2.11 QUANTITY ADJUSTMENT 16 2.13 METHOD OF INVOICING 18 2.14 SALES TAX 19 2.15 INSPECTION 19 2.16 DELIVERY 20 2.17 PENALTY FOR DELAYED SUPPLY 20 2.18 GUARANTEE 21 2.19 SECURITY CUM PERFORMANCE BANK GUARANTEE 21 2.20 SAMPLING AND ANALYSIS (LOADING END) 21 2.21 FACILITIES FOR TEST AND EXAMINATION (LOADING END) 22 2.22 REJECTION AT MPML SITE/DISCHARGE PORT 22 2.23 MARINE-CUM-INLAND INSURANCE 22 2.24 PAYMENT TERMS 22 2.26 DEFAULT/RISK PURCHASE 23 2.27 FORCE MAJEURE 24

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Para No. Title Page

No. 2.28 TRANSFER AND SUBLETTING 24 2.29 OTHER ASSISTANCE 25 2.30 GOVERNING LAW AND ARBITRATION 25 2.31 ACCEPTANCE OF OFFER 25 2.32 VALIDITY OF THE TENDER 25 2.33 EXPERIENCE OF THE TENDERER 25 2.34 COUNTRY OF ORIGIN 26 2.35 ISSUES RELATED TO ENVIRONMENT AUTHORITIES/PUBLIC 26 2.36 RECEIPT OF BURNT COAL AT MPML 26 2.37 CANCELLATION 26 2.38 NON-WAIVER 26 2.39 CONTRACT BINDING ON SUCCESSORS 26 2.40 RIGHT OF TERMINATION 26 2.41 VESSEL AND AGE 27

SECTION III- TECHNICAL 28 3.01 SCOPE 29 3.02 COMMODITY 29 3.03 QUANTITY 29 3.04 SPECIFICAITON OF COAL TO BE IMPORTED 29 3.05 DISCHARGE PORT 30 3.06 SAMPLING & ANALYSIS 30

SECTION IV- ANNEXURES 32 ANX -I FORMAT FOR SUPERSCRIPTION OF ENVELOPE 33

ANX –II BID GUARANTEE FORM 34 ANX –III MINING COMPANY’S AUTHORISATION FORM 35 ANX –IV PROFORMA OF B.G. FOR SECURITY CUM PERFORMANCE 36 ANX -V TYPICAL CALCULATION 39

SECTION - V – BIDDERS PREQUALIFICATION REQMTS. 41 4.1 BIDDERS QUALIFYING REQUIREMENTS 42 4.2 DETAILS OF TENDERERS TO BE FURNISHED 43 4.3 ENCLOSURES 45

PART -II PRICE BID FORMAT 46 PRICE BID FORMAT 47 & 48

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SECTION - I

INSTRUCTIONS

TO

TENDERERS

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SECTION - I 1.1 INSTRUCTIONS: 1.1.1 The Mysore Paper Mills Ltd., Paper Town, Bhadravati 577 302, Karnataka

state, India hereinafter referred to as ‘Purchaser’, invites sealed tenders, from the Coal Mine owners or their duly authorized agents or INDIAN IMPORTERS for supply of about 45,000 MT +/- 25% of Sized Non Coking IMPORTED Steaming Coal, in one consignment, to be imported as per specification.

1.1.2 Important Notice: The Bidder shall note that the tender is for Rupee/USD

payment only and the offer needs to be given on FOR Bhadravathi basis by Rail. Coal unloading at Mills site, will be done by MPM, at MPM’s cost. The bidder should obtain necessary clearances of FERA and other related statutory requirements if any, as applicable for import of Coal from concerned Ministry of Govt. of India. Further, MPM being a State Public Sector Organization, the bidders are to obtain necessary approval from the Ministry of Surface Transport for import of coal as regards either their own vessels or Govt. of India (Ministry of Transport) vessels.

1.1.3 Details of Tender issue, receipt and opening dates are as follows:

a) ISSUE OF TENDER FORMS FROM : 11.08.2006 b) LAST DATE FOR ISSUE OF TENDER : 26.09.2006 upto 16.30 HRS c) LAST DATE FOR RECEIPT OF FILLED

TENDERS & ON LINE SUBMISSION OF PRICE BID AT THE OFFICE OF A G M (PROJ & MATLS)I/c, MPM, BHADRAVATI : 27.09.2006 at 15.00 HRS

d) OPENING OF PART – I TECHNICAL BID OTHER THAN PRICE BID IN PRESENCE OF TENDERERS AT THE OFFICE OF A G M (PROJ & MATLS)I/C MPM, BHADRAVATHI : 27.09.2006 at 15.30 HRS

1.1.4 Telegraphic/FAX/Telex message Bids will not be accepted under any

circumstances. 1.1.5 Bids received from those who have not purchased the Tender Document

No.FPJ/4005/PCO/06 dated 07.08.2006 in their firm’s name will not be accepted.

1.1.6 Bids received after the hour and the date, so fixed above, will be returned,

unopened to the bidder, and no further correspondence will be entertained. 1.1.7 Technical bid other than Price Bid will be opened in the office of the Asst.

General Manager (Proj & Materials)l/c, Mysore Paper Mills Ltd., Paper Town, Bhadravathi-577 302, Shimoga District, Karnataka State, India at 15.30 Hrs IST on 27.09.2006.

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1.1.8 Bidder’s authorized representatives (upto two persons only) may attend the Technical bid opening. The technically pre-qualified bidders would be invited through e-Mail / Fax followed by Letters so that they can participate in the Reverse Auction for Price Bidding. MPM, in association with KSPHC (Karnataka State Police Housing Corporation Ltd.,), will follow e-Procurement coupled with Reverse Auction process.

1.1.9 The Mysore Paper mills Ltd., reserves the right to reject the lowest or any

other bid or all bids without assigning any reason thereof. 1.1.10 The bidder shall quote the prices in figures as well as in words. In case of

any variation/mistake in the words and figures, the lower rate mentioned either in words or in figures shall be considered for the purpose of bid.

1.1.11 In case, the last date of issue of Tender Document or the date of Technical

bid opening happens to be a holiday at MPM, the Documents shall be issued till the same time on the next working day. And also, the Technical bid shall be opened on the next working day at the same time.

1.1.12 The tenderers are advised to offer best possible lowest rate. Contract will

be awarded to the evaluated lowest pre-qualified Tenderer from amongst the lowest of Reverse auction and close bid. In case the lowest rate offered appears to be on higher side considering the prevailing market conditions, the Purchaser has the option to counter offer or cancel the tender and make re-tender.

1.1.13 DEFINITIONS: In this document, the following terms shall be interpreted as indicated:

a) The ‘Contract’ means the agreement signed by the Purchaser and the Seller including all attachments and appendices thereto and all documents incorporated by reference therein.

b) The ‘Contract Price’ means the price payable in Indian Rupees to the

Seller under the Contract for the full and proper performance of all its contractual obligations.

c) ‘The Goods/Materials’ shall mean Imported Sized Non Coking Steaming

Coal as per specifications set out in Section III.

d) ‘Services’ shall mean services ancillary to the supply of the Goods, such as C&F clearances, Port handling, Transportation and Insurance and any other incidental services.

e) The “Purchaser” means The Mysore Paper Mills Ltd., Paper Town,

Bhadravati 577 302, having its Registered Office at 16/4 Ali-Asker Road, Bangalore 560052, Karnataka, India.

f) ‘The Seller’ means the Company or firm supplying the coal under this

Contract.

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g) “Duly Authorised Agent” shall mean a registered firm or company duly registered in India.

1.2 SYSTEM OF MAKING BID AND ITS SUBMISSION: 1.2.1 Bids for the technical specifications stipulated in Section III are invited in

two bid system basis as noted below :

a) Technical, General Terms and Pre-qualification requirements Bid with EMD -- Part I

b) Price Bid (manual) – Part II Note : Also, the Technically pre-qualified bidders would be invited to

participate in Reverse Auction for price bidding. 1.2.2 SUBMISSION OF BIDS (Manual) :

i) The bidders shall submit their bids in two envelopes at the same time

on or before the notified date and time fixed for the submission of the tender.

The first envelope, superscribed as “Part - I”, shall contain the following :

a) Earnest Money Deposit. b) Technical specifications, and acceptance of General terms and

conditions, including payment terms, penalty, guarantee and other commercial matters without any details regarding price.

c) Any other information called for in the specifications commercial

terms other than price.

d) Details of delivery schedule.

e) Format for qualifying criteria, duly filled in Section V and supporting documentary evidences.

f) This Part ‘I’ should not contain any Price Bid.

ii) The second envelope, superscribed as “Part – II” shall contain the

Price bid.

iii) “Part – I”, and “Part – II” shall be enclosed in an overall envelope. Envelope ‘I’, Envelope ‘II’ and the overall envelope shall be individually sealed, superscribed and addressed as instructed in the tender. Overall envelope shall be superscribed as per the format given in Annexure I. Each of the three envelopes (i.e., overall envelope, chiefly ‘I’ and ‘II’ shall be signed by the Authorized Signatory).

iv) At the time and date notified for opening of the tenders, the overall

envelope and “Part I” will be opened and bids which do not contain Demand Draft / Bid Guarantee form for the payment of Earnest

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Money deposit in “Part I” will be rejected outright and the Part II’ of these bids will not be opened and will be returned to the Bidder.

v) If any of the bidders indicates the price in “Part-I” the bid will be

rejected. “Part II” shall not be opened at the time of opening the “Part-I”, but will be authenticated on the covers by the officers authorized to open the bids. “Part-II”, so authenticated, will be kept under the safe custody of the purchaser.

vi) All bids must be submitted in original together with the EMD and

other documents that may form the Bid. The Bidder’s bid and the documents attached thereto shall be considered as forming part of the Contract Documents.

vii) The Bid must be addressed to :-

Asst. General Manager (Proj & Matls)i/c The Mysore Paper Mills Ltd., Paper Town, Bhadravathi-577 302, Shimoga District, Karnataka State I N D I A.

viii) The sealed envelope containing the Bid, EMD etc., must be sent on

above address only. ix) This envelope must show on the outside, the name of the Bidder

and his address. In addition, the lower left-hand corner of the envelope should indicate the following.

“Bid for the supply of 45,000 MT +/- 25% of imported Sized Non Coking Steam Coal to be supplied in one shipment. Last date for receipt of Bids is at 15.00 Hrs. on 27.09.2006, and the Technical Bid opening will be at 15.30 hours on 27.09.2006.”

x) Bids shall be fully in accordance with the requirement of this document and the Specifications attached thereto. Copies of appropriate specimen forms furnished with the bidding documents shall be used in quoting bid prices.

xi) All information in the bid shall be in English only. Erasers and other

changes shall be noted over the initials of the person signing the Bid.

xii) The bidder shall be a primary coal Mining Company or their joint venture firm or the duly authorised agent (in India) of the coal Mining Company. In case the bidder is a duly authorised Agent in India, such agent should indicate the name of the Principal supplier who

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shall deliver the coal on CIF basis subject however to a condition that the bidder is solely responsible for execution of contract in its entirity.

xiii) The bidder shall produce along with his tender an authenticated

copy of Income Tax clearance certificate from the competent authority. The Bidder shall also produce the documents, testifying to the bidder’s previous experience and financial status, so as to assess the eligibility of the tender.

xiv) The superscription on envelope of Part I & II and overall

envelope shall be as per Annexure ‘I’. 1.2.3 SUBMISSION OF BIDS – ON LINE :

The bidder shall also submit his price bid on line within the stipulated date and time (as applicable for Manual Bid) i.e., at 15-00 Hrs. on 27.09.2006, by uploading the Bid Price to the Web site of KSPHC’s e-Tender Service Provider – M/s WIPRO. The bidder will be provided necessary training to upload the Price Bid to Web site. Only Pre-qualified bidders will be allowed to participate in the Reverse Auction. (PLEASE SEE E-TENDER CONDITION ATTACHED).

1.3 E.M.D / BID GUARANTEE 1.3.1 E.M.D of Rs.5,00,000/- (Rupees Five Lakhs only) must accompany each

bid and be offered in the form of either Crossed Demand Draft or Banker’s cheque in the name of Mysore Paper Mills Ltd., Bhadravati 577 302, Karnataka State, India, OR an Acceptable Bank Guarantee from any Nationalized Bank/ Scheduled Bank in India / Foreign Bank, except IDBI Bank in favour of “The Mysore Paper Mills Ltd”. The bid guarantee shall be as per the proforma in Annexure-II.

1.3.2 The validity of the above bid guarantee shall be at least for 90 days from

the bid opening date and the same shall be extended as may be required. Bid guarantee for shorter period shall make the bid liable for rejection.

1.3.3 Tender cover not having the above information regarding bid guarantee

superscribed on the outer-sealed cover containing the ORIGINAL tender will not be opened at all and will be summarily rejected. Any bid not accompanied by EMD by way of bid guarantee or demand draft shall be disqualified.

1.3.4 The Agreement, unless otherwise agreed to, shall be signed within 10 days

of date of notification of award at the office of the Purchaser on the date and time mutually agreed upon in the prescribed format [enclosed hereto in Annexure IV], on submission of Security Deposit-cum-Performance Bank Guarantee as per Annexure (IV) which shall be submitted within 7 days of

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notification of award by the Purchaser. Failure of the successful bidder to complete the requirement of submission of Security cum performance Bank Guarantee shall constitute a sufficient ground for annulment of the award and forfeiture of the Bid guarantee/Earnest Money Deposit. The Bid Guarantee / EMD of the successful bidder will be converted as Security Deposit and will be returned only after satisfactory completion of the contract.

1.3.5 After the award has been finalized, the Bid Guarantee/E.M.D. will be

returned to the respective Bidders, with the exception of the successful bidder.

1.3.6 No interest will be paid on Bid Guarantee/Deposits. 1.4 SIGNATURE ON BIDS 1.4.1 The bid must contain the name, residence and place of Business of the

person with Phone Nos. or persons making the bid and must be signed and sealed by the Bidder with his usual signature.

1.4.2 A Bid by a partnership firm must be furnished with the full names of the all

partners and be signed with the partner’s name, by one of the members of the partnership or by an authorized representative, followed by the signature and designation of the person or persons signing.

1.4.3 Bids by corporations/companies must be signed with the legal name of the

Corporations/companies by the President, Secretary or any other person or persons authorized to bind the corporation/company in the matter.

1.5 SIGNING AND REFERENCING OF OFFER SHEETS:

Each page of the Tender document has to be numbered consecutively and signed.

1.6 VARIATION IN QUANTITY:

The quantities shown in the Tender may be increased or decreased as considered necessary by the Purchaser.

1.7 PRICE & SPECIFICATION:

The Bidder shall quote his price for the entire range of technical specifications as per Section III of the bid document.

1.8 TECHNICAL INFORMATION :

Sampling & Analysis shall be as per IS-1350. Copies of Indian Standards on sampling and analytical procedures (IS:1350-PART.I.1984 IS:1350 PART II –1970 and IS:436 PART I Section I 1964) are available from the Bureau of Indian Standards.

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1.9 BIDDERS QUALIFYING REQUIREMENTS:

The bidder or Seller of coal shall possess minimum qualifying criteria as detailed at Section V.

1.10 CONCLUSION: 1.10.1 Bidders must ensure that the conditions laid down for submission of offers

are completely and correctly fulfilled. It should be particularly noted that no verbal change in proforma for Bid Guarantee or security cum performance Bank Guarantee is acceptable. (Bank Guarantees issued by M/s. IDBI are not acceptable to us)

1.10.2 Bids, which are not complete in all respects, as stipulated above may be

liable for rejection. 1.10.3 It shall not be binding upon MPM to accept lowest or any bid. It shall not

be obligatory on the part of MPM to furnish any information or explanation for the cause of rejection of tender or part of the tender.

1.11 SPECIMEN FOR PRICE BID i.e. Price Bid Part “II”

The price shall be filled as per the proforma in Part II. The Tenderer has to give all necessary information called for in the tender failing which the tender would be rejected. (Please note that this Price Bid shall be kept in a Price Bid envelope i.e., Part ‘II’ and sealed properly. Since, this contains the prices, it must not be loosely and openly attached anywhere in the tender.)

Note : Also, the Technically pre-qualified bidders would be invited to participate in the Reverse Auction for price bidding.

ASST. GEN. MANAGER (PROJ &

MATLS)I/c

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SECTION II

GENERAL TERMS AND CONDITIONS

SECTION - II

GENERAL TERMS & CONDITIONS 2.01 SCOPE:

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This Tender covers import of 45,000 MT +/- 25% quantity variation of Sized Non Coking Steaming Coal, in one consignment, of foreign origin for use at the MPM, Bhadravathi, Karnataka, India, from coal miners or their authorized agents as per the specifications.

2.02 DEFINITIONS: Throughout these conditions and in this Tender the terms:

a) “The Purchaser” means The Mysore Paper Mills Ltd., its successors, representatives, heirs, executors and administrators as the case may be.

b) “The Seller” means the Company or firm with whom the order for the

supply is placed, shall be deemed to include the Seller’s successors (approved by the purchaser), representatives, heirs, executors and administrators, as the case may be unless excluded by the terms of the contract.

c) “Duly Authorised Agent” shall mean a registered firm or company

duly registered in India.

d) “Goods/Materials” mean the items stipulated in the Tender /contract. 2.03 EXECUTION: The whole contract is to be executed to the entire satisfaction of the

purchaser. 2.04 SELLER’S RESPONSIBILITY: The Seller shall be solely responsible for the execution of the contract in all

respect in accordance with the conditions of the contract. 2.05 PRICE: 2.05.1 The Seller is to state, in the form of tender his lowest prices net per metric

tonne on FOR Bhadravati MPM mills site (MPM Railway exchange Yard in case of rail movement and mills site in case of road movement), Karnataka, India basis. Those who are Technically pre-qualified will be allowed to participate in Reverse Auction for price bidding. Bidder to note that this bid is to be submitted, as “a package offer” on single point responsibility basis, therefore, offers not received on F O R destination basis shall be summarily rejected. The FOR destination prices should be quoted considering New Mangalore Port having facilities to handle the materials, stevedoring and to include all duties but not limited to, levies, wharfage, shunting, trimming, tallying, receiving, unloading, stacking, re-loading to trucks / wagons and other charges and cost of protection or preservation of the materials, Dock and Harbour dues; port rates, export taxes or other fees or charges, if any, levied because of exportation from the country of origin. The unloading of coal at mills will be done by MPM at MPM’s cost.

2.05.2 Prices shall include in addition to the above freight for carriage of the

material, all Port charges and other incidental expenses such as, tonnage dues, light dues, harbour dues, other taxes and charges which are

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customarily payable on or with respect to the vessels at Port/s loading and unloading. Transportation of coal by rail is possible from New Mangalore Port. As per Purchaser’s information, New Mangalore Port is 341 Kms away by Rail. The information is indicative which the bidder, if he so desires, may verify the correctness before submitting the offer. However, Bidders should note that they should examine the entry port from which they can transport the coal by rail / road to Bhadravati.

2.05.3 The prices stated above are also to include all rights (if any) of patent,

registered design or trade mark and the Seller shall indemnify the Purchaser against all claims in respect of the same.

2.05.4 All prices quoted shall be per metric tonne on F O R destination (MPM

Railway Exchange Yard in case of rail movement and mills site in case of road movement) basis in the Indian Currency in the format enclosed at Part II and also at On-line bidding and Reverse Auction. All break-up prices shall be indicated in Rupees.

2.05.5 The break-up for F O R destination shall be given, indicating price of coal,

freight, insurance, customs duty and other taxes etc., separately in Part II, and also while On-line bidding and Reverse Auction.

2.05.6 Since there is no need to apply for import licences, under the present

policy of Government of India, actual user can import the coal for steam / power generation purpose, under O.G.L. Scheme. However, the MPM will provide the necessary certificate, if required.

2.05.7 The Basic price quoted on CIF basis shall be firm and not subject to any

fluctuation. However the statutory levies like Customs Duty on assessable value, Excise Duty / Taxes, rail freight only will be paid on actuals limited to contractual delivery period on submission of documentary evidence. Any variation in statutory duties / taxes will be to purchasers account. Any reduction in these statutory levies shall be passed on to the Purchaser.

2.05.8 It may be noted that only the importer / duly authorised Agent can

participate in the tender. 2.05.9 The evaluation of the price shall be based on the FOR destination

landed cost basis 2.06 BASIS OF PAYMENT AND PRICE ADJUSTMENT: The Basis of payment for the coal received shall be the quantity and quality of coal as received at MPM. 2.07 VARIATION IN CASE OF RAIL FREIGHT: If there is any increase or decrease in railway freight, the same will be considered against production of documentary evidence for such change.

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The F.O.R. price quoted is with the current rail freight from port to MPM, Bhadravati. Any variation in railway freight is to the account of MPM. In case of road movement, the transportation charges shall remain firm and no escalation is applicable for road movement. 2.08 NO VARIATION IN EXCHANGE RATE: The Seller should absorb any variation in exchange rate up to 5% and any variation in exchange rate beyond 5% shall be to Purchaser’s account. The tenderer should indicate in the Price Bid (i.e., in Part II – manual bid, On-line bidding and also Reverse Auction, clearly the CIF price both in Rupees as well as the Foreign currency in USD duly mentioning the exchange rate considered. If there is any variation in the exchange rate at the time of receipt at Indian port, such variation shall be absorbed by the seller. 2.09 VARIATION IN CUSTOMS DUTY : The customs duty as indicated in the Price Bid Format shall be at the prevailing rate. If there is any variation in customs duty due to change in duty structure, the same shall be to Purchasers account. The reduction in customs duty will have to be passed on to the Purchaser. The seller shall furnish the documentary evidence for the customs duty paid. 2.10 STATUTORY TAXES AND DUTIES: The price quoted is including all statutory duties / taxes / levies at the rate indicated. These will be charged at rates applicable from time to time. Any difference in amount due to statutory changes shall be to MPM account. Since the despatch documents are to be made in the name of Purchaser, no Sales tax will be applicable in case of imports. 2.11 QUANTITY ADJUSTMENT : (a) The weight of each rake shipment of coal received at MPM would be checked

on wagon / Truck weighing facility available at MPM. The Gross and Tare weight to be taken for each wagon / Truck and the net weight arrived at. The total moisture content, of coal would be checked and compared with guaranteed values as indicated above. In case any wagon is not weighed, the RR weight shall be adopted. MPM shall issue certificates indicating the weight in respect of each rake within two working days of the weighment.

b) TOTAL MOISTURE (AS RECEIVED BASIS) If the total moisture (as per the analysis report submitted by the third party inspection agency based on the sample collected at MPM site) exceeds the PO specifications, the adjusted weight of the consignment will be worked out as per the following formula. Moisture Correction on Weight – M = ( 100 + X - Moisture as per third party Inspection Report )(ARB) 100

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where X is the moisture percentage as per PO. However, no upward increase in quantity would be accepted in case the total moisture is below X% ( ARB ). (c) GROSS CALORIFIC VALUE (GCV) Prorata adjustment based on the report submitted by the third party Inspection Agency for GCV (ADB) of the coal sample collected at MPM site will be calculated as follows: Adjusted Price = Quoted Price x GCV (on ADB) as per third party Inspection Report GCV (ADB) indicated in PO Upward price increase will be effected if the GCV (on dry basis) of coal received is between 6000 and 6300 k.Cal/Kg. (d) EXCESS ASH CONTENT The weight of the consignment will be adjusted on any increase in ash above the PO specification as per the following formula as received at MPM site and tested by Third Party. Correction factor on high Ash content – A = 1 - Ash % as per third party Inspection Report (ADB) – Ash % as per PO 100 However, no upward increase in quantity would be accepted in case the % of ash content is below the specified level. If W is weight of consignment as per MPM Weigh bridge report. Corrected Weight on account of Moisture and Ash correction will be W ( Corrected ) = ‘W’ x ‘M’ x ‘A’ 2.12 PENALTY FOR EXCESS FINES: The following formula shall be applicable for levying penalty in case minus 3 mm size of the coal is above 15% and up to 25% Penalty for excess fines = Price quoted X 1 – GCV quoted – (C x % fines in excess) (Rs per MT) GCV quoted Where C = Wt. of UC in FA (0.01) x Wt. of ash in coal x Wt. of FA x 8059 K Cal/Kg.

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Legend C = Correction Factor UC = Un-burnt Carbon FA = Fly Ash 8059 = Heat Value of Carbon in K Cal/Kg. FA% = Fly Ash in total Ash. For Example: 1% increase in UC in FA where A = 11% and FA = 80% of A C = 0.01 x 0.11 x 0.8 x 8059 = 7.09 k.Cal / Kg. Assuming the price quoted is Rs.3000/- Per MT, the Gross Calorific value is 6000, ash as 11% and where excess fines is 1% the penalty works out to: Penalty = Quoted price x Quality correction = Rs.3000 x 1 – 6000 – (7.09 x 1) 6000 = Rs.3.54 / M T Note: If the fines are between 20% & 25%, the penalty will be doubled.

Beyond 25% MPM reserves the right to reject the consignment. 2.13 METHOD OF INVOICING: 2.13.1 Materials shall be invoiced based on the weight taken by the purchaser’s

authorities, on electronic weigh bridge available with purchaser, as the purchaser have got Wagon / Truck Weighment facility at MPM. This Weighment by the Purchaser shall be conclusive and form the basis for final settlement of payment, after making due adjustment on account of moisture, etc. Sellers may, at their cost, depute their representative for witnessing the weighment at MPM end. Other variation will be done as per the terms mentioned above.

2.14 SALES TAX: 2.14.1 It may be noted that the Mysore Paper Mills Ltd., is registered under the

Karnataka Sales Tax Act and Central Sales Tax Act. KST No is 00700381 and TIN is 29560132497 and the CST No. is 00750384. The necessary Form ‘C’ declaration or Form 37, as the case may be, as and when required, may be obtained directly from the concerned mentioned below:

Asst. General Manager (Project & Materials)i/c The Mysore Paper Mills Ltd., Paper Town, BHADRAVATHI 577 302 Karnataka, INDIA.

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Fax: 00 91 (0)8282 – 270741/270937. 2.14.2 The Bidder/their authorised working agent should have registered with the

concerned sales tax authorities both at Tamilnadu / Goa as well as at Karnataka and the relevant Sales tax Number should be indicated in the tender.

2.15 INSPECTION: The Seller at their cost shall arrange the drawing of sample and analysis of the coal at the Loading Port through M/s Lloyds or M/s. Bureau Veritas or M/s SGS, or their authorised agency or any International Accredited Agency as per IS 1350. The Mysore Paper Mills shall arrange at its cost drawing of sample and analysis of coal through M/s Inspectorate Griffith India Pvt Ltd., Kolkata, as per IS 1350 at MPM site, except for fines which will be analysed at Discharge Port. At MPM site 4 samples are to be collected as per standards and to be distributed three for MPM one for seller, one as a referee sample and one for testing agency. The sampling shall be obtained in presence of MPM authorities and for all purposes including moisture sampling from the rake, the 3rd party inspection agency or their authorised agency Test Report shall be final and binding on both the parties for quality and price / quantity adjustment. It may be noted that the test results obtained at the port of loading is only for the reference and the test results as per 3rd party inspection agency or their authorised agency or any Internationally Accredited Agency report at MPM site shall be binding on both the parties. The test results obtained by third party by purchaser at Bhadravathi on receipt of the coal at MPM site shall be final and binding on both the parties and will be used for the purpose of payment (except for fines which is as per analysis at the Discharge Port). MPM shall arrange for analysis of fines at Discharge Port 2.16 DELIVERY: The total quantity of coal shall be shipped in one shipment as follows: Shipment to be delivered at Site - Mid November 2006 (Tentatively) 2.16.01 Delivery should be arranged in such a way that the coal should reach the

Indian Port and the movement of coal from port should be completed in total 45 days time from the date of discharge of the cargo at port. The coal shall be delivered at the mill site at Bhadravathi and the Purchaser shall not be responsible for any damages/shortages or loss of material during transportation/transit. In the event of supply not meeting with the

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requirement of the Purchaser, then the purchaser reserves the right to terminate the contract without financial liability on either side.

2.16.02 If the guaranteed delivery periods are not kept up, the terms of penalty

specified in clause 2.17 below, will be enforced. 2.16.03 In the event of ship carrying the coal is diverted or does not reach the

destination or the ship is missing, it shall be the responsibility of the seller to replenish the material immediately as per the delivery schedule.

2.16.04 Time Stipulated in the delivery/shipment schedule shall be the essence of

the contract. The deliveries/shipments are to be commenced and to be completed within the delivery schedule specified.

2.16.05 Copy of cable/advice of shipment in quadruplicate, shall be sent

immediately to Purchaser 2.16.06 In case the Supplier could not complete the ordered quantity within the

delivery period agreed, due to the reasons attributable to the Purchaser, the Contract validity shall get extended till such time the supplies are completed as per the directions of the Purchaser.

2.17 PENALTY FOR DELAYED SUPPLY: In case, the materials are not delivered within the period stipulated in the order or schedule given by the Purchaser, the seller shall be liable to pay at the discretion of the competent authority of the MPM Mills, the penalty upto half percent per week or part of week on the price of coal subject to a maximum of cumulative ceiling of 5% reckoned on the contract value of such complete portion of coal or material delayed. Due consideration may be given in the levy of penalty for reasons absolutely beyond control of the Seller, for which documentary evidence shall be produced to the satisfaction of the competent authority of the Purchaser. The Purchaser shall be entitled to deduct/recover the amount from the current bill payable to the seller or any other amount due or payable to them against this or any other contract. 2.18 GUARANTEE: 2.18.01 The supplier shall warrant that the material supplied shall comply fully with

the specifications laid down. If material supplied is not in conformity with the conditions as laid down above, the purchaser shall reject the same and the payment, already made for the rejected quantity will be recovered, while making final payment. The decision of the purchaser in regard to the suppliers liability under this guarantee shall be final and conclusive.

2.19 SECURITY CUM PERFORMANCE BANK GUARANTEE: On acceptance of the bid, the Seller shall furnish a security – cum – Performance Bank Guarantee in the proforma attached vide Annexure IV from a Nationalized/ Scheduled Bank in India, (except IDBI) within 7 (seven) days from the receipt of the Letter of Award of the Bid, by the Seller for an amount equivalent to 10% (ten percent) of the contract value. The EMD paid along with the tender will be converted as Security Deposit and hence the Security Deposit Bank Guarantee

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shall cover the value equal to 10% of order less the EMD. EMD obtained in the form of bid guarantee shall be made as a part and parcel of Security Deposit Bank Guarantee and Bankers confirmation to this effect should be furnished by the Seller. Alternatively, if the Seller desires to furnish the Bank Guarantee for the entire amount prescribed, the EMD submitted shall be refunded. The Security Deposit will be retained by the purchaser till the satisfactory completion of the contract. On the performance and completion of the contract, in all respect, the Security-cum-Performance Bank Guarantee will be returned to the Seller, without any interest. The Security-cum-Performance Bank Guarantee shall remain in full force and effective during the period that would be taken for satisfactory performance and fulfillment in all respect of the contract and shall continue to be enforceable for 180 days after the date of last shipment of the material contracted to be purchased. The Security cum Performance Bank Guarantee shall provide for extension of validity for a period of 180 days on each occasion when a request is made by the Purchaser. Such extension of validity shall be confirmed by the Guarantor Bank without any reference to the Seller.

The Security-cum-Performance Bank Guarantee and/or any amendment there to shall be executed on a stamp paper of requisite money value in accordance with the Stamp Act as applicable to Karnataka.

2.20 SAMPLING & ANALYSIS (LOADING END): Each consignment should be accompanied by certificates of Sampling and Analysis as per IS 1350 standards. The certificate shall contain the necessary details including conformity of specifications and size stipulations of contract, sampling analysis at loading port. The charges incurred on account of sampling analysis at loading end shall be borne by the Seller.

The test certificates issued by the Internationally accredited independent laboratory for the sampling test on the loading port for the consignment should be faxed to Asst. General Manager (Proj & Materials), MPM, Bhadravathi, Karnataka, for the sampling and tests carried out while loading at the loading Port.

2.21 FACILITIES FOR TEST & EXAMINATION (LOADING END) The purchaser shall have the right at his own expenses to be represented at the time of sampling, weighment and analysis at the time of loading. The Seller shall provide/arrange without extra charge, any such materials as equipment, tools and layout and maintenance of every kind of which the Purchaser or his nominee may consider necessary for any tests and examination which he or his nominee shall require to be made of the processed material at the premises of the miner/seller or port of loading/receiving.

2.22 REJECTION AT THE MPML SITE / DISCHARGE PORT : The inspection at the MPM site will be done as per IS Standard by M/s. Inspectorate Griffith India Pvt Ltd, Kolkata. All the sampling / testing will be done at MPM site except for fines which will be analysed at Discharge Port. The entire rake will be rejected at MPM site in the event of quality of coal not adhering to the technical specifications as stipulated in Section III and as per test indicated in the Sampling clause. (Clause No. 2.20).

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In case of rejection at MPM site/Discharge Port, the seller shall take back such material and shall make his own arrangements to dispose off the same to any other buyer at his own risk and cost. The Seller shall be responsible for lifting and transporting the rejected coal immediately. MPM is not responsible for any shortage, deterioration, spontaneous combustion, etc. if the consignment of coal is rejected due to non-conformity of the specifications at MPM site/Discharge Port, the supplier shall reimburse 35% payment received already based on Load Port Analysis against Letter of Credit along with the expenditure incurred towards Custom Duty + any other charges incurred by MPM within a week, on receipt of intimation from MPM. 2.23 MARINE-CUM-INLAND INSURANCE: Insurance coverage till receipt of coal at MPM, shall be the responsibility of the Seller.

2.24 PAYMENT TERMS: 2.24.1 35% of the payment on the CIF price (excluding the Customs duty) for the

shipment shall be made by way of Letter of Credit. The Security-cum-Performance Bank Guarantee, as per the prescribed format, should be submitted by supplier to enable the Purchaser to open the Letter of Credit.

2.24.2 The letter of credit will provide for payment of 35% of CIF value for each

shipment against the following documents drawn in English :- 2.24.3 Two or three sets of Original on Board Clean Ocean Bills of Lading. 2.24.4 Signed commercial invoices in quadruplicate certifying that the materials

are in accordance with the terms of the contract. 2.24.5 Certificate of provisional weight as per the load port draft survey in

triplicate. 2.24.6 Certificate of provisional sampling and analysis done at loading port ( by

third party Inspection Agency like M/s Lloyds, M/s Bureau of Veritas or M/s SGS or their Authorised Agencies / International reputed Agencies) in quadruplicate, containing the values of Gross Calorific Value (Dried basis), Total moisture, Ash, Sulphur and size of coal.

2.24.7 Certificate of origin in quadruplicate. 2.24.8 A certificate in quadruplicate certifying that one negotiable copy of Bill of

Lading along with four copies of non-negotiable copies of Bill of Lading. Invoice and other documents mentioned above have been sent direct to the Purchaser within 7 days from the date of Bill of Lading.

2.24.9 Copy of cable /fax advice of shipment in quadruplicate. 2.24.10 Certificate from the inspecting agency (M/s Lloyds, or M/s. Bureau Veritas

or M/s SGS or their Authorised Agencies / International reputed Agencies) that the coal inspected only has been shipped.

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2.24.11 Balance payment of the cost of coal ( excluding customs duty) would be made after duly considering the other components of price and variation in price due to quality and quantity for coal consignment , progressively (Rake by Rake basis) by way of cheque within 30 days on receipt of material at MPM site and on production of :

a) Weighment particulars recorded in the weighment slip at MPM

weighbridge.

b) Supplier’s Invoice. Invoice shall accompany all relevant documentary proof for price variation and the quantity variation as per the test results (Rake by Rake basis).

2.25 PAYMENT OF CUSTOMS DUTY: The Purchaser shall pay full value of

Customs Duty as and when the demand is made by customs authorities. 2.25.1 No other terms of payment shall be accepted. 2.26 DEFAULT / RISK PURCHASE: The Purchaser may, without prejudice to any other remedy for breach of

contract, by written notice of default sent to the Seller, terminate the Contract in whole or in part:

a) If the Seller fails to deliver any or all of the goods as per specification

within the time period (s) specified in the contract or any extension thereof granted by the Purchaser OR

b) If the Seller fails to perform any other obligation(s) under the

contract.

In the event the Purchaser terminates the contract in whole or in part, pursuant to above in addition to invoking the security-cum-performance Bank Guarantee, the Purchaser may procure, upon such terms and in such manner as it deems appropriate, goods similar to those undelivered, and the Supplier shall be liable to the Purchaser for any excess costs for such similar Goods. However, the Seller shall continue performance of the contract to the extent not terminated.

2.27 FORCE MAJEURE: 2.27.1 Force majeure as herein defined shall mean any cause which is beyond

the control of either MPM or Supplier as the case may be, which could not be foreseen with a reasonable amount of diligence and which substantially affects the terms of this contract such as, but limited to:

a) Natural calamities including but not limited to floods, droughts,

earthquakes and epidemics. b) Acts of any government, domestic or foreign including but not limited to

war, declared or undeclared priorities, quarantines, embargoes.

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c) Accidents and disruptions including but not limited to fires, explosions, breakdown of essential machinery or equipment at load or discharge port, including road bridging which may directly affect shipment / discharge / receipt of coal.

d) Accidents and disruptions including but not limited to fires, explosions

and breakdown of essential machinery or equipment at MPM.

e) Ocean transportation delays due to force majeure conditions en route.

f) Strikes, lockouts & sabotage.

2.27.2 On occurrence of a force majeure event, the date of completion/delivery period/other obligations under this contract will be extended by a reasonable time upon mutual consent.

2.27.3 If the performance in whole or part by MPM or any obligation under the

contract is prevented or delayed by force majeure condition for a period exceeding 60 days MPM and Supplier may terminate the contract by notice in writing.

2.28 TRANSFER AND SUBLETTING: 2.28.1 The Seller shall not sublet, transfer, assign or otherwise part with the

contract or any part thereof to any third party either directly or indirectly. 2.29 OTHER ASSISTANCE: 2.29.1 If required, the Seller shall apply directly to the appropriate Government

Authority for required permission/assistance for any work to perform import of coal. However, the MPM will also assist wherever necessary and possible, by giving required letters etc., without any firm commitments. Such assistance shall not absolve the seller of his responsibility.

2.30 GOVERNING LAW AND ARBITRATION : 2.30.1 Laws applicable to this contract shall be the laws in force in India. The

courts at Bangalore shall have exclusive jurisdiction in all matters/disputes, if any, arising out of this contract.

2.30.2 The Purchaser and the Seller shall make every effort to resolve amicably

by direct informal negotiation any disagreement or dispute arising between them under or in connection with the contract.

2.30.3 If after thirty (30) days from the commencement of such informal

negotiations, the Purchaser and the Seller have been unable to resolve amicably a contract dispute, either party may require that the dispute be referred for resolution to the formal mechanisms as specified in para 2.30.4 below. These mechanisms may include, but are not restricted to conciliation mediated by a third party adjudication in an agreed national or

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international forum, and/or international arbitration. The mechanism shall be specified in the contract.

2.30.4 The dispute resolution mechanism to be applied pursuant to above shall

be referred in adjudication/arbitration in accordance with the arbitration and conciliation Act 1996 as amended from time to time. The venue of Arbitration shall be Bangalore, India.

2.31 ACCEPTANCE OF OFFER: The Purchaser reserves the right to accept/reject any offer in part or in full without assigning any reason thereof. 2.32 VALIDITY OF THE TENDER: Tenders/Bids should be valid for acceptance for a period of at least 30 days from the date of their opening. Bids with shorter validity are liable for rejection at the discretion of the purchaser. 2.33 EXPERIENCE OF THE TENDERER: The Bidder shall indicate their experience indicating the industries/power stations in India/abroad to which they have supplied imported Sized Non-coking Steaming Coal. 2.34 COUNTRY OF ORIGIN: The country of origin will be indicated in the offer of the Seller. 2.35 ISSUES RELATED TO ENVIRONMENT AUTHORITIES/PUBLIC Issue related to environmental issues including public grievances (if any) shall be to the responsibility of the bidder. 2.36 RECEIPT OF BURNT COAL AT MILLS: If burnt/burning coal is received at the Mills then the same will have to be manually unloaded. The cost towards this including demurrages/penalty with additional 15% as supervision charges shall have to be borne by the bidder. 2.37 CANCELLATION: The purchaser may terminate/cancel the contract in full or part by written notice (15 days advance notice) in case the contract is found uneconomical.

2.38 NON-WAIVER:

Failure on any occasion of either party to insist upon strict adherence to any of the provisions of the Contract or to enforce any of his rights under the laws specified

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under Governing Law hereof shall not be construed to be a waiver of such provisions or rights in any manner.

2.39 CONTRACT BINDING ON SUCCESSORS:

The Contract shall accrue to the benefit of and be binding upon the successors and permitted assigns of the parties hereto.

2.40 RIGHT OF TERMINATION: 2.40.1 The Purchaser reserves the right to terminate the Contract or any part

thereof upon the Supplier failing to fulfil his part of the contractual obligation, by way of a written notice.

2.40.2 Either party has the right to terminate the Contract or any part thereof by a

written notice to the other if; 2.40.3 Such other party becomes Bankrupt or goes into liquidation or ; 2.40.4 Such other party makes a general arrangements for the benefit of its

creditors or ; 2.40.5 A receiver is appointed for all the property owned by such other party. 2.40.6 Upon receipt of said Termination Notice, the party receiving the Notice

shall discontinue Supplies on the Contract and matters connected with it. 2.40.7 In the event of termination of the Contract, all Supplies for which Supplier

has received payment but of which delivery has not been effected, shall be placed at the disposal of Purchaser on the date of such termination, and the risk and property therein shall pass to Purchaser at the same time. Any supplies performed by Supplier up to the date of such termination which has not been paid for at that date but which is subsequently paid for shall be placed at the disposal of Purchaser at the date of such payment and the risk and property therein shall pass to Purchaser.

2.41 VESSEL & AGE :

Seller shall be free to fix charter/liner vessels excluding overaged/unclassed vessels. However, shipments will be entertained only through conference line vessels/Liner Vessels certified by Lloyds (or) Equivalent agency. The vessel should be suitably geared and provided with atleast 4 nos of fully automatic working grabs with a minimum capacity of 8 CBM each. The Vessel age should not be more than 20 years. Certificate for Sea worthiness of the vessel and for the age of the vessel should be provided along with shipping documents, certified by the respective shipping companies. In case the seller prefers over aged vessel, the extra insurance premium for such overage shall be borne by the Seller.

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ASST. GEN. MANAGER (PROJ &

MATLS)I/c

SECTION - III

TECHNICAL SPECIFICATIONS

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SECTION – III

TECHNICAL SPECIFICATIONS 3.01 SCOPE:

The Mysore Paper Mills Ltd., proposes to import about 45,000 Tonnes +/- 25% of Sized Non Coking Steaming Coal, in one consignment. This invitation to tender enumerates the quantity to be imported, detailed specifications as well as the terms and conditions of supply. We hereby invite tenders from Coal miners or their duly authorized agents.

3.02 COMMODITY:

Sized Non Coking Steaming Coal, of import origin, for use in The Mysore Paper Mills Ltd., for generating steam and power.

3.03 QUANTITY:

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3.03.1 45,000 Tonnes +/- 25% of Non Coking Steaming Coal, in one consignment to be delivered as per the schedule confirmed in the order.

3.04 SPECIFICATION OF COAL TO BE IMPORTED 3.04.1The imported coal supplied shall conform to Technical Specifications. The

Gross Calorific Value (GCV), moisture content, ash content and sulphur content on ADB basis shall be within the range as indicated hereunder. The coal supplied will be acceptable if the GCV, ash content and sulphur content are within the aforesaid range and is liable for rejection in case these limits are exceeded. However, other characteristics contained in Technical Specification shall be adhered to and maintained and non-adherence shall result in rejection of supplied coal / levy of penalty.

3.04.2 The guaranteed value and GCV, moisture content, ash content and the

sulphur content for the quoted price is as follows: SPECIFICATION

Sl No Technical data Guaranteed

value

Acceptance range with pro-rata price / qty modification

Rejection level

1 Gross Calorific Value (ADB)

6000 kCal/kg 5600 – 6300 kCal/kg

Less than 5600 kCal/kg

2 Total Moisture – as received at MPM (ARB)

15% Max. 15% to 20% More than 20%

3 Ash (ADB) 10% Max. 10% to 14% More than 14%

4 Sulphur (ADB) Less than 0.8% -- -- 5 Volatile matter (ADB) 25 to 45% -- Above 45% 6 Size of coal 0 to 50 mm

(Minus 3.0 mm size max 15%)

Minus 3 mm size 15% to 25% with penalty clause

Minus 3 mm beyond 25%

ADB – Air Dry Basis, ARB – As Received Basis. 3.04.3 In order to ensure consistent quality, the coal mine from where the coal is

being proposed for supply shall have substantial production preferably with export potential of 45,000 Tonnes of Non Coking Steaming Coal.

3.05 DISCHARGE PORT:

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New Mangalore Port only. Purchaser will consider FOR BHADRAVATI Price for evaluation.

3.06 SAMPLING & ANALYSIS:

Third party inspection should be carried out by one agency at the Loading Port and by another agency at MPM site like M/s SGS, M/s. Lloyds, M/s. Bureau Veritas, etc. Certificate of Sampling and Analysis at the Load Port should be provided by the seller at their cost for the consignment. The cost of third party inspection at Bhadravati would be borne by MPM.

The same should contain inter-alia, the following:

a) LOAD PORT ANALYSIS (as per IS 1350) ( On ADB Basis)

i) Size of Coal / Sieve Analysis. ii) Gross Calorific Value in Kcal/kg (ADB). iii) Total moisture percentage (ADB). iv) Inherent moisture percentage (ADB). v) Ash content percentage (ADB). vi) Volatile matter percentage. vii) Fixed carbon percentage. viii) Sulphur percentage.

b) SAMPLING &TESTING AT MPM SITE BY THIRD PARTY :

i) Size of Coal / Sieve Analysis. ii) Gross Calorific Value in Kcal/kg (ADB). iii) Total moisture percentage (ADB). iv) Inherent moisture percentage (ADB). v) Ash content percentage (ADB). vi) Volatile matter percentage. vii) Fixed carbon percentage. viii) Sulphur percentage.

Name of the firm / Company: Address of the Firm/company

Date: Signature:

Seal of the firm/company

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SECTION - IV

ANNEXURES

ANNEXURE NO

PARTICULARS OF ANNEXURE

I

FORMAT FOR SUPERSCRIPTION OF ENVELOPE – PART I & PART II AND OVERALL ENVELOPE

II

BID GUARANTEE FORM

III

MINING COMPANY’S AUTHORISATION FORM

IV

PROFORMA OF BANK GUARANTEE FOR SECURITY CUM PERFORMANCE

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V

TYPICAL CALCULATION

ANNEXURE-I

FORMAT FOR SUPERSCRIPTION OF ENVELOPE PART I & PART II AND OVERALL ENVELOPE

1. Part ‘I’ Subject

Tender No. & Due date: EMD Amount: And details thereof Technical Bid for Tender No. and Due date. Address of the Bidder.

2. Part ‘II’

Price bid for Tender No.FMT/0000/PCO/06 dt.00.00.2006. Address of the Bidder.

3. Overall Envelope :

(i) Subject (ii) Tender No. (iii) Due date and Time of Submission (iv) Due date and time of opening (v) Payment of EMD (vi) Address of the Bidder

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ANNEXURE – II

BID GUARANTEE FORM

REF:................................................... Date:................................................... Bank Guarantee No:........................... In accordance with invitation for the supply of 45,000 Tonnes + or – 25% of Sized Non Coking Steaming Coal, in one shipment, for Mysore Paper Mills Ltd., Bhadravathi, Karnataka, India.

Address

Director(s)

Wish/Wishes to Participate

in the said bid and as a Bank Guarantee for the sum of Rupees Five Lakhs only valid for 180 (one hundred eighty days) days required to be submitted by the Tenderer, this Bank, hereby guarantees and undertakes during the above said period to immediately pay on written request by The Mysore Paper Mills Ltd., Paper Town, Bhadravathi, Karnataka, India, the amount of Rs.5.00 Lakhs (Rupees Five Lakhs only) to the said Mill without any reservations. This guarantee would remain valid upto 16.00 hrs. I.S.T (date) ................. and if any further extension to this is required, the same will be extended on receiving instruction from the ..................... on whose behalf this guarantee has been issued.

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In case of successful Tenderer, this will be converted as Security Deposit by making this a part and parcel of the Security Deposit to be furnished by the Tenderer.

Signature: Name and Code: Designation: Seal of the Bank:

NB: In case the Banker is a foreign bank the guarantee shall be countersigned by

a Nationalized Bank / Scheduled Bank in India acceptable to the purchaser. (except IDBI)

ANNEXURE – III MINING COMPANY’S AUTHORISATION FORM

(In the Letter Head of the Coal Mining Company)

No:………………………… Date:………………….. To: Dear Sir, Subject : Ref No:…………………………… We …………………………….., having the Coal Mine located in

………………………, in the name of the Mining Company as ……………, hereby authorise our only agent M/s ……………….. (Address) in India to bid, negotiate and conclude the contract with you against your Specification for imported Sized Non Coking Steaming Coal – 45,000 MT + or – 25% in one shipment.

No company or firm or individual other than M/s……………….., can

conclude the contract in regard to this supply of imported coal as specified in the specification. The name of the signatory in the bid as well as his usual signature is attested here below.

Yours faithfully,

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Name:……………………….

(Seal) for and on behalf of M/s

(Name of Coal Mining Company)

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ANNEXURE –IV

PROFORMA OF BANK GUARANTEE FOR SECURITY–CUM PERFORMANCE.

………...........................................................................................….......Bank Limited ..........……….....................................................................................……...................... Bank Guarantee No ............................A/c. Messrs.................................................. Date of Expiry......................... Address................................................………............ Limit of Liability Rs. _________ Reference of Tender No.................. Dated ........ For (Name of work) ………………............................................................ Sub– SECURITY DEPOSIT Dated ..............…….....................................................

--------------------------- To

THE MYSORE PAPER MILLS LIMITED., Paper Town, P.O. BHADRAVATHI – 577 302, Karnataka, India. Dear Sirs, In consideration of your agreeing to accept the Security Deposit of Rs................................................. (Rupees.................................................. ) furnishable to you by Messrs ................................................................ of ................. (hereinafter referred to as the contractor) in terms of their contract with you for ................................. as per their Tender No. ....................... dated ............... pursuant to your invitation to such tender and your general conditions of contract and other tender documents relating thereto, subject to the conditions and alterations mutually agreed upon and set forth or referred to in your letter of acceptance/order No. ............................ (hereinafter referred to as ‘the said contract’ which expression shall in case on execution of any formal agreement between you and the contractor shall and include the said agreement) in the form of guarantee from us in the manner thereinafter contained, we ......................... Bank Limited do hereby covenant and agree with you as follows : 1. We undertake unconditionally to pay to you such sum or sums not exceeding in all Rs.........................(Rupees ........................................only) for any loss or damage caused to or suffered by or that may be caused or suffered by you, by reason of any breach or breaches on the part of the Contractor, any of the terms and conditions contained in the said contract and in the event of contractor shall make any default or defaults in carrying out any of the terms and conditions resulting there to, in accordance with the true intent and meaning thereof, we shall forthwith on demand pay to you such sum or sums not exceeding in total the said sum of Rs. ............... (Rupees ..........................................only) as may be claimed by you at your losses and or damages, costs, charges or expenses by reason of such defaults on the part of the contractor.

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2. Notwithstanding anything to the contrary, your decision as to whether the Contractor has made any such default or defaults and the amount or amounts to which you are entitled by reason thereof will be binding on us and we shall not be entitled to ask you to establish your claims under this Guarantee but will pay the same immediately on demand without any objection. 3. This Guarantee shall continue and hold good until it is released by you on the

application by the Contractor after expiry of the relative guarantee period of the same contract and after the Contractor has discharged all his obligations under the said contract and submitted a “No Demand Certificate” provided always this guarantee shall in no event remain in force after the day of ..........................., without prejudice to your claim or claims arising and demanded from or otherwise notified to us is writing on or before the said date which will be enforceable against us notwithstanding that the same is or are enforced beyond the said date on account of any extension of time being granted by you to the contractor in respect of completion of the work under the said contract or otherwise we irrevocably undertake to extend the period of this guarantee on your request till such time as may be reasonably required. 4. You will have the fullest liberty without affecting this guarantee, from time to

time, to vary any of the terms and conditions of the said order contract or extend time of performance of the contract to postpone for any time or from time to time any of your rights or powers against the Contractor, and either to enforce or for bear to enforce any of the terms and conditions of the said contract and we shall not be released from our liability under this guarantee or by reason of any time being given to the Contractor or any other forbearance, act or omission on your part or any variation in the terms of the said order contract, or thing whatsoever which under the law relating to sureties would, but for the provisions here of, have the effect of so releasing from our liability hereunder, provided always nothing herein contained will enlarge our liability hereunder, beyond the limit of Rs..................... (Rupees.......................................only) as aforesaid or extend the period of the guarantee beyond the said day of ....................................., under expressly agreed to by us in writing.

5. This guarantee shall not in any way be affected by your taking or varying or giving up any securities from the Contractor or any other person, firm or Company on its behalf or by the winding up, dissolution, insolvency or death as the case may be of the Contractor. 6. In order to give full effect to the Guarantee herein contained, you shall be entitled to act as if we were your principal debtors in respect of all your claims against the Contractor, hereby guaranteed by us as aforesaid and we hereby expressly waive all our rights of suretiship and other rights if any, which are in any way inconsistent with the above or any other provisions of this guarantee. 7. Subject to the maximum limit of our liability as aforesaid, the guarantee will cover all your claim or claims against the Contractor, from time to time, arising out of or in relation to the said contract and in respect of which your demand or notice in writing is received by us on or before the date of expiry of this guarantee mentioned above. 8. This guarantee and the powers and provisions herein contained are in addition to and not by way of limitation or substitution for any other guarantee or

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guarantees hereto or given to you by us (whether jointly with others or alone) and now existing is cancelled and shall not revoke or limit such guarantee or guarantees. 9. This Guarantee shall not be affected by any change in the constitution of the contractor or us, nor shall it be affected by any change in your constitution or by way of amalgamation or absorption thereof or therewith but will ensure for and be available to and enforceable by the absorbing or amalgamated Company or concern. 10. This guarantee during its currency shall not be revocable by us except with your previous consent in writing. 11. NOTWITHSTANDING anything contained herein the liability of the guarantor under this guarantee is restricted to Rs. ...................................... only and that this guarantee shall remain in force till its expiry on ..............................., unless a suit or action to enforce a claim under this guarantee is made against the guarantor within six months from the above said date of expiry, all the rights of the beneficiary under the said guarantee shall be forfeited and the guarantor shall be released and discharged from all liabilities thereafter.

Yours faithfully, (for THE BANK) (Seal of the Bank to be affixed)

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ANNEXURE - V

TYPICAL CALCULATION

TYPE OF COAL RECEIVED AS PER ANALYSIS AT MPM SITE

(Rate quoted is Rs.3,000/- per MT ( assumed ), as per our conditions and quantity received is say 45,000 MT as per MPM weighment) As per P.O. Actual (assumed) Ash 10% 15% Moisture 15% 17% GCV 6000 5900 Moisture Correction on Weight – M = 100 + 15 - Moisture as per third party Inspection Report )(ARB) 100 Example : M = 100 + 15 – 17 = 0.98 100 Adjusted price for GCV

Quoted Price x GCV (on ADB) as per 3rd Party Inspection Report = GCV (ADB) indicated in P.O. Example : = Rs.3000 X 5900 = Rs.2950/- per MT 6000 Excess Ash Content - Correction factor on high Ash content – A =1- (Ash % as per third party Inspection Report (ADB)–Ash % as per PO) 100 However, no upward increase in quantity would be accepted in case the % of ash content is below the specified level. Example : A = 1 - 15-10 = 0.95 100

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Corrected Weight on account of Moisture and Ash will be : W (Corrected) = W x M x A

W = Let us assume 3480 MT as the weight of coal received as weighed at MPM

Weigh Bridge against 3500 MT despatched from the Port.

Therefore W (Corrected) = 3480 X 0.98 X 0.95

= 3239.88 MT

Accordingly, payment would be made for 3239.88 MT of coal only. Therefore final payment to be made = W (Corrected) X Adjusted price for GCV = 3239.88 MT X Rs.2950.00 = Rs.95,57,646.00 If all the parameters of coal supplied are as per specification and the weight of the coal as weighed at MPM weigh bridge is 3480 MT, the supplier would be eligible for payment of Rs.1,04,40,000.00.

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SECTION –V

BIDDER’S PRE-QUALIFICATION REQUIREMENTS

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SECTION –V

BIDDER’S PRE-QUALIFICATION REQUIREMENTS

4.1 BIDDER’S QUALIFYING REQUIREMENTS: The Bidder or Seller of Imported Coal shall possess the following minimum qualifying criteria: 4.1.1 The Bidder shall be a primary producer of coal or a joint venture firm or a

duly authorized agent of the coal producer. The Bidder, in case he is an authorized agent, shall enclose the Mining Company’s authorization in original in the prescribed form as per Annexure –III attached herewith.

4.1.2 The Bidder or his joint venture partner should have an experience of

importing Non Coking Steaming Coal to India and should have imported / exported to India at least 25,000 Tonnes of the same during any one year in any of the past three years preferably to Government sector by sea cum rail / road. Copies of Bill of Entries to be furnished, supporting the transactions.

4.1.3 The Bidder should have sound financial status and capabilities. The bidder

shall furnish the necessary certificate from the Banker regarding solvency of the bidder to the extent of at least Rs.3 Crores.

4.1.4 The Bidder should have minimum annual turnover of Rs.10/- crores in one

year in any of the past three years towards the import of Coal. Certified Audited Balance sheet should be furnished in support of this.

4.1.5 The Bidder shall produce a Power of Attorney to his persons who will be

signing in case of submission of tenders & award of contract. 4.1.6 The bidder shall quote for the coal specification covered under this tender

and not for any other variety / quality of coal. Tenders with any other specification shall be liable for rejection.

4.1.7 Any Bidder black listed by any State or Central Public Undertakings in India

will not be considered and his offer will be rejected. The Bidder shall give a declaration to this effect.

4.1.8 In the event that the bidder is a joint venture formed of two or more

companies, the purchaser requires that all the parties of the joint venture accept joint and several liabilities for all obligations under the contract. Bids submitted by a joint venture of two or more firms, as partners shall comply with the following additional requirements: a) The bid and in case of a successful bid, the Form of Agreement, shall

be signed so as to legally binding on all.

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b) One of the partners shall be authorized to be in charge and this authorization shall be evidenced by submitting a power of attorney signed by legally authorized signatories of all partners.

c) The partner in charge shall be authorized to incur liabilities and

receive instructions on behalf of any one or of all partners of the joint venture and the entire execution of the contract including payment shall be done exclusive with the partner in charge.

d) All partners of the joint venture shall be liable jointly and severally for

the execution of the contract in accordance with the contract terms, and a relevant statement to this effect shall be included in the authorization mentioned under (b) above.

e) A copy of the agreement entered into by the joint venture partners

shall be submitted with the technical bid. 4.1.9 Notwithstanding anything stated above, the purchaser reserves the right to

assess the credibility, capability and capacity to perform the contract should circumstances warrant such an assessment in the overall interest of the purchaser.

4.2 DETAILS OF THE TENDERER TO BE FURNISHED :

1) Name of the Bidder 2) Postal Address with

Telephone Nos./FAX Registration No. etc.

3) Name of the Indian authorized

agent, if any his address, Telephone Nos., etc.

4) Please state, whether the bidder

Is a producer/or producer’s Joint venture partner or duly Authorised agent of coal producer. If so, please give the certificate in support of above.

5) If the bidder is a seller not a

Producer of coal please produce the following documents: a) Power of Attorney from

coal producer authorizing the bidder to quote/sign/act on behalf of the producer.

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b) Power of Attorney to his persons who will be signing the documents.

c) Authorization certificate

from the coal producer to handle and supply coal mined by the producer.

6) Financial status/solvency of

the bidders. a) The bidder if he is the

producer then he should furnish the solvency certificate from his Bankers to the extent of Rs.75 lakhs.

b) In case of consortium of companies,

they should submit cumulative solvency of Rs.75 lakhs.

c) In case of seller / agent, the solvency certificate from his Bankers to the extent of Rs.75 Lakhs.

7) In case of consortium of Company or

Joint venture firm they should produce following documents:

(i) Partnership deed or similar document. (ii) Equity participation documents. (iii) Financial status of individual companies.

8) Quantity of coal imported to India per year : (Minimum 25,000 MT should have been handled in

any one year to India preferably to Govt. sectors by sea cum rail/road in last 3 years/ present year - Documentary evidence including completion certificates in original should be furnished)

9) Tenderer should offer for entire quantity of 45,000 MT +/-25% in one shipment for

pre-qualification requirement. Part quantity offer will not be accepted.

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10) Turn over: (Should have turn over towards the import of Coal of Rs. 10.00 crores per year for one year during any of the past three years / present year – Certified copies of Audited accounts should be furnished in support of this)

Sl No. Year Turnover in crore Rs. 01 2003-04 02 2004-05 03 2005-06

11) Sales Tax Certificate: -

1) Sales Tax No. at Tamilnadu : 2) Sales Tax No. at Goa : 3) Sales Tax No. at Karnataka :

4.3 ENCLOSURES

1) Certificate to the effect that the Tenderer

is an authorized agent of coal : Enclosed / not enclosed

2) Certificate from coal mining authorities that Bidder has supplied imported coal to India : Enclosed /not enclosed

3) Solvency certificate for Rs.3 Crores : Enclosed / not enclosed

4) Documentary evidence for having imported min. 25,000 Tonnes per year to India. : Enclosed / not enclosed

5) Power of Attorney for the tender signing

Authority : Enclosed / not enclosed 6) Audited Balance Sheet/ P & L Account for past 3 years : Enclosed / not enclosed 7) Income Tax clearance certificate : Enclosed / not enclosed

The tenderers should enclose all the relevant supporting documents as prescribed in the Pre-qualification requirement, failing which Tenders are liable for rejection. The Tenderers should confirm the acceptance of all Commercial Terms and conditions and the Coal Specification.

Signature: State Title (Whether Proprietor/Partner) Name / Address of the firm: Seal of the firm

Date :

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PART – II

PRICE BID FORMAT

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PART – II

PRICE BID FORMAT

To, Asst. General Manager (project & Materials)i/c THE MYSORE PAPER MILLS LTD., Paper Town, Bhadravathi – 577 302, Karnataka State, India.

Dear Sir,

1) Having examined the above specification, we hereby offer to supply 45,000

Tonnes +/- 25% of Sized Non Coking Steaming Coal described under the said Tender on F.O.R. Destination basis, The Mysore Paper Mills Ltd., Bhadravathi, in one shipment (excluding unloading at mills site):

Quantity in Tonnes Rate in Rs/MT

Total Price In Rupees

45,000 MT+/-25% In one shipment

2) The details of break up of prices are as follows :-

Sl. No: Particulars ---

1 Description of Coal Imported Sized Non-Coking Steaming coal

2 Quantity (in M.T) 45,000 MT +/- 25% 3 Price for Port of Source in Rs. per MT 4 Price CIF Port of Entry in Rs. per MT 5 Port handling and other charges Rs. per

MT

6 Customs Duty in Rs. per MT 7 Any other tax / duty Rs. / Per MT – to

be specified

8 Cost of Handling / Storage / Inland delivery etc., to Bhadravati in Rs. per MT

9 Total Landed Cost at MPM, Bhadravati in Rs. Per MT (3+4+5+6+7+8)

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3) Railway / Road freight considered at Rs. …………..…….. per MT from the port. 4) Exchange Rate considered – 1 USD = Rs. ……………….. 5) Country of origin : …………………………

6) Location of the Coal Mine:………………………………. 7) Name of the Coal Mining Company:……………………. 8) Validity of offer : 30 Days from the date of opening of Technical Bid. We agree to all the tender conditions and to supply coal as per the Tender Document No. FPJ/4005/PCO/06 dated 07.08.2006. Thanking you,

Yours faithfully, Signature: State Title (Whether Proprietor/Partner) Name of the firm : Address of the firm : Seal of the firm :

Date: