REQUEST FOR QUOTATION(RFQ) - Information On Iron … ORE PELLET… · Steel Authority of India Limited Rourkela Steel Plant, Rourkela – 769 011 MATERIALS MANAGEMENT DEPARTMENT Tender

Steel Authority of India Limited Rourkela Steel Plant, Rourkela – 769 011 MATERIALS MANAGEMENT DEPARTMENT

Tender Number : MM/2014-15/IOF-PELLET/1176 DTD : 09/05/2014

MATERIALS MANAGEMENT DEPARTMENT

PURCHASE DEPARTMENT,ADMINISTRATIVE BUILDING, ROURKELA STEEL PLANT : ROURKELA - 769011

Telephone No:0661-25100384 FAX NO.: 0661- 2510028

REQUEST FOR QUOTATION(RFQ)

Open Tender for procurement of Iron Ore Pellets by Rail on conversion basis from Iron Ore Fines.

Invitation to Tender No. MM/2014-15/IOF-PELLET/1176 , DTD – 09/05/2014

1. Sealed tenders are invited for supply of monthly rate of 34,000 Metric Tons(BSL :

25,000 MT & RSP : 9,000 MT) of Iron Ore Pellets on conversion basis. 2. SAIL shall supply Iron Ore Fines from their Captive Mines from : Gua/Barsua/Kiriburu

Mines under RMD. 3. The bidders are requested to submit their Quotation for conversion charge per MT of

Iron Ore Pellets supply considering the ratio of 1.80 MT of Iron Ore Fines for 1 MT of Pellets.

Last date & time for submission of Quotation: 10/06 /2014 by 16.00 HRS(IST)

Tenderers who are interested in participating in the tender can download the tender documents from our Website: http://www.sailtenders.co.in and submit their Quotation on or before 16.00 Hrs (IST) of last date of submission of Quotation as per the instructions given in the tender documents. H. Pradhan

GM(MARKETING) & CHAIRMAN, TASK FORCE FOR PROCUREMENT OF PELLETS, SAIL, ROURKELA STEEL PLANT


Tender Number : MM/2014-15/IOF-PELLET/1176 DTD – 09/05/2014

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OPEN TENDER NOTICE FOR SUPPLY OF IRON ORE PELLETS ON CONVERSION BASIS FROM IRON ORE FINES.

INVITATION TO TENDER NO. MM/2014-15/IOF-PELLET/1176 , DTD – 09/05/2014

1.0 NOTICE INVITING TENDERS FOR SUPPLY OF IRON ORE PELLETS ON CONVERSION BASIS.

1.1 SAIL/Rourkela Steel Plant invites quotations from Manufacturers only for supply of Iron Ore Pellets on Conversion basis conforming to technical specification at Annexure-I of Tender Document.

1.2 REQUIREMENT: The PURCHASER intends to procure 4,00,000 Metric Tons on conversion basis (1,00,000 MT of RSP & 3,00,000 MT of BSL, Bokaro) of Iron Ore Pellets, conforming to Technical specifications as at Annexure-I of tender documents at monthly rate of 9,000 MT for RSP and 25,000 MT for BSL, Bokaro for a period of one year.

1.3 How to submit Bids : Bidders are requested to read carefully the instructions contained in our enquiry and submit their offers as per our requirement indicated in enclosed Enquiry/RFQ.The offer is requested to be submitted in three parts (EMD Bid, Techno-Commercial Bid and Price Bid in separate sealed covers) which is as follows:

INTEGRITY PACT SUBMISSION :

The bidder(s) is required to enter into an Integrity Pact with the principal i.e. SAIL. The Integrity Pact has to be signed by the Proprietor / owner / partner / Director or by the duly authorised signatory on each page. The bidder(s) has to ensure submission of Integrity Pact as per FORMAT at Annexure-VI of RFQ & must be submitted along with Techno-commercial Bid in Techno-commercial Bid envelope. In case of failure to submit the Integrity Pact along with the offer/bid will disqualify the offer/bid.(Each & every page of the Integrity Pact is to be signed and in the last page at the appropriate place right side with signature & seal along with the signature of two witnesses).

Suppliers are advised to submit the bids in 3 parts in separate sealed envelopes, then these three envelopes shall be placed in another bigger envelope addressed to Tender Opening Cell. Part-I : EMD Bid (Earnest Money Deposit Bid). Part-II : Techno-Commercial Bid, Eligibility Criter ia & Integrity Pact : will comprise only Techno-commercial Terms along with item specifications & Integrity Pact(Annexure-VI). Note that Part- II includes delivery terms, Taxes & Duties, and all commercial parameters. Item price should not be indicated in Part-II Bid. Part-III : Price Bid : will comprise Price Bid only. Tenderer must indicate Conversion charges in Rs. per MT of Pellets in figures as well as in words. A format given in Annexure-III of Tender document is prescribed for Price Bid. All the tenderers are advised to submit their conversion charges only in the prescribed proforma. Any other terms and conditions other than the price mentioned in the price bid shall not be taken into consideration.

Bidders are requested to submit 1(One) copy of Earnest Money, 2(two) copies of techno-commercial bid and 2(two) copies of price bid. The bids should be sealed in separate envelopes super-scribing "Earnest Money Deposit", "Techno-commercial Bid" and "Price Bid" respectively. These three envelopes should then be placed in another sealed envelope which should bear the superscription :



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"TENDER FOR SUPPLY OF IRON ORE PELLETS ON CONVERSION BASIS AGAINST RSP RFQ NO. MM/2014-15/IOF-PELLET/1176, DTD – 09/05/2014". The name and address of the bidder and the RFQ number should be mentioned on all envelopes.

NOTE : OFFERS NOT SUBMITTED IN 3 PARTS AND AS PER FORMAT ABOVE SHALL BE SUMMARILY REJECTED.

1.4 Tenders submitted against NIT / Tender shall not be returned in case the tender opening date is extended/postponed. Tenderers desirous to modify their offer/terms may submit their revised/supplementary offer(s) within the extended TOD, by clearly stating the extent of updation done to their original offer. The employer reserves the right to open the original offer along with revised offer(s).

1.5 Not withstanding anything specified in this Tender Documents, RSP, in his sole discretion,

unconditionally and without having to assign any reason, reserves to himself the rights: a) To accept or reject the lowest tender or any other tender or all the tenders; b) To accept any tender in full or in part; c) To reject the offers not conforming to the tender terms and d) To give Purchase preference to Public Sector Undertakings wherever applicable as per

Government policy/ Guidelines. e) To extend purchase preference to Local SSIs ( Micro and Small Enterprises) as per prevailing

guidelines of SAIL, subject to submission of relevant documents. 1.6 At any time prior to the deadline for submission of the bids, SAIL/RSP may for any reason modify

the tender terms and conditions by way of an amendment or Corrigendum. Such amendments Or Corrigendum will be notified on SAIL website at regular intervals. Therefore, the tenderers should refer to SAIL website regularly for any corrigendum.

1.7 Offers which deviates from the vital conditions (as illustrated below) of the tender shall be rejected.

a) Variable price being quoted against requirement of Firm prices. b) Non submission of complete offers, appending signature on the offer and the prescribed formats.

c) Receipt of Offers after due date & time and or by e-mail/ fax d) Receipt of offers in open condition e) Please note that the quotations received after due date & time will be unsolicited.

1.8 In case any tenderer is silent on any clauses mentioned in this tender document, RSP shall

construe that the tenderer had accepted the clauses as per this Invitation to Tender. 1.9 The price quotations should be given in only in the price format and not in any other

accompanying documents or statement. No revision in the terms and conditions quoted in the offer will be entertained after the last date and time fixed for receipt of tenders.

1.10 Authorisation Representative of the tenderers are required to produce letter of authorization, if they are to be permitted to attend tender/price bid opening.

1.11 STATEMENT OF DEVIATIONS : The commercial terms and conditions of this RFQ and any contract arising there from shall be given in Annexure-II.



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1.12 Tenderers are requested to read carefully the instructions contained in our RFQ and submit their quotation in line with our requirement indicated in enclosed Enquiry. The quotation is required to be submitted as follows :

RFQ/Enquiry No MM/2014-15/IOF-PELLET/1176, DTD – 09/05/2014

Tender to be submitted at tender opening box addressed to

Asst.Mgr.(MM) TOC, Room No-1, Ground Floor, Admin Building, Rourkela Steel Plant, Rourkela – 769011, Orissa

Tender to be submitted by Post/ Courier to be addressed to

Asst.Mgr.(MM) TOC, Room No-1, Ground Floor, Admin Building, Rourkela Steel Plant, Rourkela – 769011, Orissa

Last Date & Time for Submission of Offers (EMD Bid, Techno Commercial Bid and Price Bid)

On or before : 10.06.2014, 16.00 Hrs. IST. Offer to be submitted before due date and time mentioned above.

Due date for opening of Quotation (Techno Commercial bid and EMD)

11.00 Hrs. IST, 11.06.2014 in presence of authorized representatives of tenderers, who might choose to be present.

Validity of Offer for Order Placement

Techno-Commercial bid as well as price bid shall remain valid for minimum 120 days from the date of tender opening.

Earnest Money Deposit (EMD)

Earnest Money Deposit: 1. EMD bid should be accompanied by Demand Draft, for an amount of

Rs.20,00,000/- (Twenty Lakhs). The Demand Draft should be established in favor of SAIL/RSP, Rourkela through any Scheduled Bank except Co-operative Banks and Gramin Banks.

2. A bid which is not accompanied by EMD of requisite value shall be rejected by the Purchaser as non-responsive.

3. The Original Earnest Money Deposit amount will be returned to the Bidder after finalization of Conversion Agreement.

4. Forfeiture of EMD : In case the successful bidder fails to submit the Performance Bank Guarantee, the EMD shall stand forfeited without any further reference to the bidder

Eligibility Criteria & Documents required for establishing Eligibility.

The Manufacturer should be a single party & should fulfil the following

eligibility criteria :

1. Manufacturer should be a single party and should be owning and operating Pellet Plant of a minimum capacity of 0.6 MTPA.

2. The party must have facility of Beneficiation and should be owning

the minimum capacity of beneficiation facility of 0.5 MTPA for beneficiation of Iron Ore Fines.

3. The manufacturer's Plant must be in operation for the previous 3(three) consecutive years and the average annual turnover should

be minimum 120 crores in last three consecutive years. 4. The party should have own or designated Railway Siding. 5. The party must have facilities individually to convert Iron Ore Fines

to Iron Ore Pellets and the Manufacturer's Plant must have valid Trading License (Procurement / Storing / Processing / Selling /

Trading) of Iron Ore under rule-6(1) and Rule 7 of Self Consumption and sale of residual. However, in case it is not available at the time

of bidding, the party can participate in the Tender but the successful

bidder must submit the same before award of Contract. 6. Party banned from business dealing with any SAIL Plant(s) will not

be eligible. 7. The bidder must submit notary verified copies of documents in

support of meeting the above eligibility criteria.



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Your offer should reach us either through Courier / Registered / Speed Post or same may be dropped in tender box before schedule time and date and NOT THROUGH FAX / DIRECT DELIVERY to individuals. RSP is not responsible for any postal delay and tender received after the scheduled date and time of submission shall be summarily rejected as late offers. AS OFFERS ARE INVITED MORE THAN ONE BID, COMPOSITE OFFERS WILL NOT BE ACCEPTED.

1.13 Evaluation: The Price Bid Evaluation will be done Plant wise(BSL/RSP) on the basis of Landed Cost net of SETOFF(LCNS) of Iron Ore Pellets to determine L-1 supplier considering Iron Ore Fines at market rate ruling on the date of opening price bid (OMC Circular), Inbound Freight(considering freight from all the three Mines Gua / Barsua / Kiriburu) to bidder Plants, Outbound Freight(Bidder Plants to BSL/RSP), all Taxes and Duties after adjusting for input tax credit as admissible. Accordingly, L-1 party/parties will be determined for RSP & BSL.

Order may be placed on more than one source depending on L-1 status of parties for RSP & BSL.

Raw material linkage will be considered based on proximity to the production facility.

Accordingly L-1 Party/Parties will be determined for RSP and BSL. Order may be placed on more than 1 source depending on L-1 status of parties for RSP and BSL.

1.14. RSP shall also have the option to conduct Reverse Auction amongst the eligible bidders through our Service Provider i.e., M/s. MJunction Ltd.

2.0 SUBMISSION OF OFFERS: 2.1 QUOTING OF PRICE(S): The rate of taxes, duties, levies, Cess, Royalty and Freight

considered are to be indicated separately. The conversion charges quoted shall remain firm and fixed during the period of the contract and till completion of supplies and shall not be subject to any variation on any account. However, any change in statutory taxes and duties shall be reimbursed at actuals during the original contractual delivery period. It may be noted that unit price is to be quoted both in figure and words in the format enclosed at Annexure-III . In case of any discrepancy between the two, the price indicated in words shall only be considered. Any change in taxes and duties beyond the original contractual delivery period is to be borne by the Supplier.

2.2 In case, any tenderer quotes any other term than mentioned in this tender, the same shall be

loaded as per RSP norms while evaluating their offer. 2.3 Any revised bids received after tender opening, shall be rejected unless it has been furnished in

response to a specific request from SAIL/RSP.

2.4 Each page of the offer should be numbered consecutively, referring to the total number of pages comprising the entire offer, at the top right-hand corner of each page.

2.5 Each page of the offer should be signed by the authorized officer(s) of the Tenderer.

2.6 The price quotations should be given in only in the price format and not in any other accompanying documents or statement. No revision in the terms and conditions quoted in the offer will be entertained after the last date and time fixed for receipt of tenders.

2.7 In case any tenderer is silent on any clauses mentioned in this tender document, RSP shall

construe that the tenderer had accepted the clauses as per this Invitation to Tender.



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2.8 In case Conversion Agent fails to convert the Contractual quantity of Iron Ore Pellets (80%

minimum), the BG is liable to be forfeited and respective Units of SAIL will be at liberty to cancel the Conversion Agreement.

2.9 COMPLETENESS OF THE TENDER: Each Tenderer should ensure that the aforesaid conditions for submission of offers are duly complied with. Failure to furnish correct and detailed information as called for, will render the concerned tender liable to rejection. Punitive actions will be taken against agencies who submit false/forged documents to RSP.

2.10 VALIDITY OF THE OFFER : Each tenderer shall keep his offer firm and valid for acceptance by RSP for a period of 120 (One Hundred twenty) days from the date of opening of tenders.

2.11 SECURITY DEPOSIT BANK GUARANTEE (SDBG) :

2.11.1 The successful tenderer should submit Performance Bank Guarantee within 15 (Fifteen) days from the date of Placement of Conversion Order. The successful Bidder should furnish Security Deposit in the form of a Bank Guarantee as per proforma at Annexure-V of the RFQ, for an amount of Rs.2.50 Crores equivalent tom 4 rakes of Iron Ore Fines. No change in the prescribed proforma of the Bank Guarantee for Security Deposit is acceptable. The SDBG should be established in favour of respective SAIL Plant Units through any scheduled Bank except Co-operative and Gramin Banks and should be received in the office of the Purchase Manager of the respective Steel Plant who has issued the purchase order within 15 (Fifteen) days of the date of Placement of Conversion Order. The Stamp Paper shall be purchased in the name of the concerned Bank and stamp paper shall be of Rs.100/- denomination.

2.11.2 The SDBG shall be kept valid and in full force and effect till a period of three months from the date of delivery of the last consignment of the Purchase order. However, the seller shall release the SDBG on application after the seller has discharged all his obligations under this contract. The SDBG shall be operable at the local Branches of issuing Bank located at respective SAIL Plants.

2.11.3. Suppliers shall have the option to permit respective steel plants to retain an amount equivalent to SDBG amount (as mentioned at clause 2.11.1) from their initial bills in lieu of submission of SDBG.

2.12 If a tenderer who responds to this tender is requested to furnish copies of the following documents separately to be submitted along with techno-commercial offer i.e., PART-II BID in a sealed envelope.

a) Statutory Industry Registration Certificate. b) Excise, Sales Tax registration Certificate, Income Tax clearance certificate & PAN card. c) Documents in support of their meeting of eligibility criteria. d) Original Certificate of Railway Freight from the loading station to respective SAIL Plants

on Train Load Basis. Other credentials like ISO certificate etc. e) A statement listing the major customers to whom Iron Ore Pellets have been supplied in last

3 years(2011-12, 2012-13 & 2013-14). The list of customers must have information about the name of the customer, their order reference number, quantity ordered, and contact details of the customers who can be contacted to establish the credentials provided if possible, copies of purchase orders / performance reports from the customers may also be enclosed

f) Documents showing the exact nature of ownership. g) Production capacity of Iron Ore Pellets and its annual production during the last three years. h) A recent Test & Inspection certificate(dated not earlier than one year from date of tender)



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issued for material by a reputed international test house / Government approved test house. Above documents are to be submitted duly Notarised along with the offer.

NOTE : SAIL/RSP, after opening of tender/bid document, may seek in writing, the

documents/ clarifications which are necessary for evaluation of tender/bid document from the tenderer/bidders or issuing authority for confirmation of eligibility criteria stipulated in the NIT.

3.0 Conversion Conditions :

3.1 The Conversion Agent is required to supply 34,000 MT (+/-25%) of Iron Ore Pellets per month

on conversion basis for a period of one year.

3.2 OPERATION PROCEDURE :

3.2.1 RMD shall arrange to supply Iron Ore Fines by Rail on freight pre-paid basis. The Conversion Agent shall make all arrangements to get the IOF unloaded at Conversion Agent’s Plant site.

3.2.2 Chemistry of Iron Ore Fines as reported by RMD Mines will be final. Overloading / penalty charges levied by the Railways, if any, due to detection at loading / first

point weighment en route for the Iron Ore Fines despatched by SAIL RMD will be borne in full by SAIL.

3.2.3 SAIL shall reimburse Excise Duty paid on Pellets, subject to Excise Laws in force, upon

submission of proof of payment along with cenvatable invoices. The applicant may also indicate Service Tax, if applicable.

3.2.4 Supply of Iron Ore Fines : From Gua / Barsua /Kiriburu Mines under RMD.

Specification of Iron Ore Fines supply from SAIL Mines (Gua, Barsua/Kiriburu) is as under : Name of Mines Fe Al2O3(Max) SiO2(Max) MOISTURE(Max) Dump Fines from Gua

56 to 60% 3.8% 4.4% 6% Trailings from Barsua / Kiriburu

3.2.5 The Conversion Agent shall process said Iron Ore Fines(IOF) and convert the same

into Iron Ore Pellets as per specification indicated (indicated at Annexure-I) The conversion agent shall be responsible for all pilferage, theft or loss from its Plant of said IOF.

3.2.6 On receipt of the Iron Ore Fines at the designated siding of the party, siding charges, haulage, unloading, transportation and subsequent unloading charges from the siding to the premises of the party shall be arranged by the supplier at their cost.

3.2.7 Demurrage / wharfage charges and wagon damage / deficiency charges for the Iron Ore Fines, if any, levied by Railways at the destination / unloading point will be borne by the Conversion Agent.



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3.2.8(i) Similarly, demurrage / wharfage charges and wagon damage / deficiency charges against supply of Pellets by Rail in Full Train loads, if any, levied by Railways at the loading point will be borne in full by the Conversion Agent.

(ii)Demurrage / wharfage charges and wagon damage / deficiency charges against

supply of Pellets by Rail in Train load, if any, levied by Railways at the unloading point will be borne in full by respective SAIL Plant.

3.2.9 Applicable weight of Pellet will be RR weight and chemistry as certified by Third Party Agency to be appointed by SAIL and the cost of Third Party will be borne by the party.

3.3.0 Rakes shall be arranged by the party, as per SAIL Plant’s request for dispatch of Pellets.

3.3.1 If actual weight of Pellets at loading point is not available, then the actual weight as recorded at the Weighbridge of SAIL Plant, will be the basis for material reconciliation. Joint monitoring of weighment at the weighbridge of SAIL Plant can be done by the representative of SAIL and of the selected party.

3.3.2 Under loading / overloading charges on account of Pellets, levied by the Railways, if any, shall be to the account of the Conversion Agent.

3.3.3 In case, some wagons carrying Pellets, are found to be under loaded, dead freight and other incidental expenses, if any, due to under loading levied on the rake, will be debited from the bills of the party.

3.3.4 In case, the wagons carrying pellet are found to be overloaded, the penal freight, if levied by the Railways and other incidental expenses, if any, involved due to overloading of the wagons will be debited from the bills of the Conversion Agent.

3.3.5 The Conversion Agent shall provide Test Certificate in the prescribed format with each dispatched consignment of Pellets.

3.3.6 If SAIL suffers any loss / damages due to negligence and / or non-performance of the obligations under the contract by the party shall, on demand, pay to SAIL the specified sum.

3.3.7 The party, in accordance with prevailing procedures, prescribed by Sales Tax, Service Tax and Excise authorities, comply with all necessary formalities such as registration with Sales Tax, Service Tax, Excise, etc and also shall undertake the documentation and timely furnishing of return as stipulated by Excise authorities.

3.3.8 The party shall ensure that the delivery of converted Pellets is made after payment of Excise Duty, Service Tax etc as applicable. The party should ensure that applicable Excise Duty, Service Tax etc is paid within the due date as per Law on delivery of Pellets. The Conversion Agent shall consider the analysis report of RMD(Raw Material Division) as the basis for arriving at the Iron Ore Fines quality.

3.3.9 Weight of incoming Iron Ore Fines shall be as per actual RR weighment as recorded in the e-printouts. In case, RR weight is not available, actual weight recorded in RMD loading point weight shall be taken as final.

3.4.0 DGM I/c(T&RM) of the respective SAIL Units shall be the nodal officers to operate this contract. Coordinating Officers shall also be nominated by the Conversion Agent to facilitate the execution of the Contract / Agreement.



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3.4.1 Process residuals arising in production/handling of Iron Ore Pellets shall be retained by the Conversion Agent and conversion charges are net of such residuals.

3.4.2 SAIL shall ensure month wise Iron Ore Fines supply required for production of 34,000 MT (+/-25%) of Iron Ore Pellets per month and provide dispatch plan of Iron Ore Pellets in order not to disrupt Conversion Agent’s production plan. However no commitment can be given by SAIL for supply.

3.4.3 Conversion Agent shall book the Iron Ore Pellets rake with Railway for dispatch to SAIL Plant Units as per SAIL advice on Full Train Load Basis through shortest / Rationalized route. However, Railway freight shall be charged at actuals as shown on the RR.

3.4.4 The transportation of IOF from Mines head to supplier’s unloading point shall be arranged by respective SAIL Units by Rail.

3.4.5 The transportation of Iron Ore Pellets from supplier premises shall be arranged by the supplier by Rail and Rail transportation of Pellets shall be borne by SAIL units.

3.4.6 Freight : SAIL/RMD shall arrange for rakes from Railways for loading of IOF. Railway freight of IOF shall be to respective SAIL Units.

3.4.7 Freight charges for transportation of Pellets from supplier’s premises to SAIL Plant units will be to respective SAIL Units’ account.

3.4.8 Loading of IOF at Mines head shall be organized by SAIL/RMD and unloading at

supplier’s siding shall be arranged by the supplier.

3.4.9 Loading of Pellets at supplier’s works shall be organized by the supplier and unloading

at respective SAIL Plant Units shall be arranged by respective SAIL Units.

3.5.0 For Iron Ore Pellets : Weighment shall be as per clear RR weight either at loading point

or en-route weighment as the case may be, shall be considered for all the purposes.

3.5.1 Sampling and analysis : The sampling and analysis of Pellets will be done by a Public

Analyst to be appointed by SAIL Units. Samples of Pellets will be collected rake wise from

each consignment at the Loading Station and the analysis shall be done as per IS Standard.

The cost of Public Analyst will be borne by the supplier. In case, the Analysis Report is found

to be beyond allowable range, the matter shall be mutually discussed and settled. SAIL,

however, reserves the right to conduct periodic checks of Sampling and Analysis being done

at the Loading Station. SAIL may also inspect the materials at destination on random basis.

3.5.2 Appointment of Public Analyst: i) The Bidder shall submit a panel of minimum 3 nos. of Public Analyst to SAIL Units

for their approval. This is to be submitted along with the Techno-commercial Bid.

ii) Out of the approved panel of Public Analyst, the Consignee will select two Public Analysts in rotation on quarterly basis and inform the Supplier before commencement of supplies.

iii) Public Analyst will perform the sampling & analysis in presence of SAIL Plant’s

representative, if present. Otherwise, these activities will be performed solely by the Public Analyst.

iv) On instruction from the SAIL Units, the Conversion Agent has to replace the Public

Analyst by a Public Analyst of SAIL Plant’s choice from the approved panel.



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3.5.3 i) The monthly weighted average basis of Fe content in IOF will be 58%. In the eventuality of any variation in Fe content, same will be settled on monthly average basis by adjusting the equivalent quantity of Iron Ore Fines.

ii) Any variation in moisture content will be settled on rake to rake basis by adjusting the equivalent quantity of Iron Ore Fines.

3.5.4 Demurrage & Wharfage, if any, at Loading Point, for Iron Ore Pellets and for unloading of Iron

Ore Pellets at supplier’s end, shall be on supplier’s account. In case, the wagons are found to be overloaded, the Penal Freight, if levied by Railways and other incidental expenses, if any, involved due to overloading of the wagons will be debited to the Supplier’s account.

3.5.5 TERMS OF PAYMENT :

Payment of conversion charges shall be made by respective SAIL Plant Units in the following manner :

j) 90% payment of conversion charges shall be made by respective SAIL Plant Units within 15 days of dispatch of rake from Conversion Agent through e-payment mode against submission of Original RR, Invoice & Guarantee Certificate. In case, clear RR weight is not available, then the weighment at the destination Plant of SAIL will be final.

ii) Balance 10% payment of conversion charges shall be made by respective SAIL Plant Units on monthly basis after jointly reconciling the quantities and submission of Third Party Analysis report.

3.5.6 CONTRACT PERIOD : The period of Contract / Agreement shall remain in force for

one year. The Conversion Agent and SAIL may mutually agree in writing to extend the agreement for another one year period.



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ANNEXURE-I

TECHNO-COMMERCIAL BID .

1 Company’s Name & Complete Address:

(a) Source of supply:__________________________________________

(b) Railway Loading point : ___________________________________________

(c) Total offered Quantity: _____________________ MT

(d ) Excise Duty :

(Extra / Inclusive, Applicable rate to be mentioned in % or in Rupees)

(e) Sales tax, Additional Tax, Entry Tax, VAT : __________________________________

(Applicable Rate to be mentioned in %)

(f) Freight : ______________________________________________________

(Extra / Inclusive, Applicable amount to be clearly mentioned in Rupees)

( g ) Insurance : _______________________________________________________

(Extra / Inclusive, Applicable amount to be clearly mentioned in Rupees)

(h) Excise Registration Number : ___________________________________________

(To indicate ECC number)

(i ) Sales Tax Registration Number : __________________________________________

( To Indicate Sales Tax Registration number (Central & State)



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2.0 Specification for Iron Ore Pellet shall be as follows : Parameter Specification

Fe 63.5 % min

Al2O3 2.5% max

SiO2 2.5 % max

Size (in mm)

+ 9 to – 18

+ 18

- 5

85% min

5 % max

5% max

ASTM tumbler index 92 %min

Abrasion Index 4 % max

Porosity 22 to 27 %

Cold Crushing Strength 230 Kg / pellet (min)

Compression strength after reduction 30 kg / pellet (min)

Moisture Oct-May (2%) max

Jun-Sep (5%) max

Acceptable limits and penalty for Chemical specific ation –

Chemical Composition Norm

Acceptable Norm No payment

Fe 63.5 % min Cut-off point for acceptance with penalty - 61 % Penalty for variation below specified min - @ 1% of base price for every 0.25% or part thereof variation below 63.5% up to 61%

Below 61 %

Acceptable limits and penalty for Size specificatio n :

Size Norm Acceptable Norms No Payment

+18 mm 5 % max 10 % max >10%

Penalty for +18mm fraction - @ 2% of base price for every 1% (one percent) or part thereof variation up to 10%. No payment for fractions over and above acceptable Norm.

-5 mm 5 % max 8 % max >8%

Penalty for -5 mm fraction - @ 2% of base price for every 1% (one percent) or part thereof variation up to 8%. No payment for fractions over and above acceptable Norm.



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Note : i) The material delivered should be moisture free and dry.

ii) We have gone through all the terms and conditions of the tender notice and accept the same. Our offer is valid for your consideration up to 120 days from the date of opening of tender.

iii) We further agree to all the above technical specifications and acceptance. iv) We hereby declare that all the relevant documents required, as mentioned at

page-56(para-2.12) of this NIT, are enclosed. v) Format for Statement of Deviations (Annexure-II) is enclosed.

(Signature of the authorised signatory & seal of the company)



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ANNEXURE – II

Statement of Deviations From Specifications, Terms & Conditions

Sub: Open Tender Notice No. …………………………………………..

Statement of Deviation from Terms & Conditions and Specifications The following are the particulars of deviations from the requirements of the terms & conditions and specifications :- Clause / Para Deviation Remarks

(including justification)

I/ We, hereby, declare that there are no deviations from the tender terms & conditions other than those mentioned above. I/ We, hereby confirm acceptance of all the terms and conditions of the RFQ, except for the deviations specifically mentioned above. I/ We understood that only those deviations which are mentioned in this Proforma shall be considered as valid deviations i.e. deviations mentioned elsewhere in the offer shall not be taken into cognizance. Dated :- Signature and seal of the Bidder Note:- Where there is no deviation, the statement should be returned duly signed with an

endorsement indicating "No Deviations".



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ANNEXURE-III

FORMAT FOR PRICE BID 1. Name of the Tenderer :

2. Address :

Sl No.

Input quality (Fe)

Pellet Quality (Fe)

Conversion Ratio

(I/O fines: Pellet)

Conversion Charges (Rs.per tonne of Pellets)

1. 56 to 60% Min 63.5%

(Signature of the authorised signatory & seal of the company)



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ANNEXURE- IV Other Terms & Conditions of the Tender

(REF : MM/2014-15/IOF-PELLET/1176, DATED 09/05/2014)

1 Definitions : A reference herein to different expressions / abbreviation used shall mean the following:-

1.1 “SAIL” shall mean “M/s. Steel Authority of India Ltd.,” incorporated under the Companies Act, 1956 and having their registered office at Ispat Bhawan, Lodhi Road, New Delhi – 110003, India and their plant / unit, which term or expression unless excluded by or repugnant to the context shall include their successors and permitted assigns.

1.2 EMD – Earnest Money Deposit 1.3 SD – Security Deposit 1.4 MT- Metric Tonne 1.5 DD – Demand Draft

1.6 “The Contract” shall mean and include the Invitation to Tender, Instructions to Tenderers, Tender notice, Other Terms & Conditions, Acceptance Offer / Offer Letter, Agreement along with subsequent Amendments if any and other documents issued by SAIL/RSP pertaining to the referred tender.

2 Tender forms

a) Tenders are to be submitted in the prescribed form as detailed in the Tender Documents, which will be made available as Annexure / Corrigendum / Addendum etc. to the invitation to Tender. The tenderers will sign and stamp each and every page of the tender documents, terms and conditions of sale, schedule etc. forming part of the terms as token of acceptance thereof.

b) The signature on the tender documents shall be deemed to be

acceptance of all terms & conditions of sale & schedule and other documents forming parts of the tender.

c) Letter of acceptance of terms and conditions by the tenderers will be treated as

acceptance of tender.

Compliance of any of the above three will be treated as acceptance of tender in toto. 3. Earnest Money Deposit (EMD)

3.1 Every tender should be accompanied by a non-interest bearing Earnest Money Deposit

for the amount prescribed in the tender document by way of Demand Draft / Pay Order / Banker’s Cheque as the case may be on a nationalised / scheduled bank drawn in favour of “SAIL concerned Plant / Unit” payable at concerned Plant / Unit branch as mentioned in the tender document.



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3.2 Cheques will not be accepted towards earnest money deposit. 3.3 It will not be possible to adjust earnest money from any other sum of money due from

the plant / unit, on account of pending bill, security deposit or earnest money paid towards another tender.

3.4 Tender without earnest money will be summarily rejected. 3.5 Public Sector Undertakings / Govt. Departments may be exempted from submission of

earnest money as per prevailing SAIL / Govt. policy. 3.6 In the case of unsuccessful tenderers, the earnest money will be returned. No

interest shall accrue on the amount of Earnest Money Deposit. 3.7 It must be ensured that the earnest money deposit is not less than the amount

required . 4 Tenders are to be submitted by the due date and time to the appropriate authority

as per stipulation in one or more parts as the case may be. Delayed / Late tenders will not be accepted after closing of tender box on due date and time. Tenders through Telegraph / Fax / Telex / E-Mail will not be accepted.

5 Price

5.1 The tenderer should quote the rates in the Price Schedule only. 5.2 The tenderer should quote the rates in the Price Schedule only both in words &

figure, in English language. In case of any mismatch between the two, the price indicated in words shall be considered.

5.3 Alterations if any, in the quotations, shall not be recognised unless confirmed by the tenderer’s signature.

6 Validity of offers

The rate / price quoted should remain valid for acceptance by SAIL within the specified number of days from the date of opening of tender as stipulated in the Tender Document.

7 Unsolicited offers Tenderers must be very careful to submit a bonafide tender. After submitting a tender, they shall not withdraw their offer or modify any terms and conditions thereof, without being asked to do so. Should the tenderers fail to observe the foregoing stipulation, their earnest money deposit shall be forfeited and the revised offer of the tenderer shall also be rejected.

8 SAIL reserves the right to accept or reject any or all the tenders or apportion the same amongst different tenderers, either in whole or in part, without assigning any reasons thereof.

9 Each tenderer shall, while submitting his offer, submit his declaration as to whether the proprietor or any partner of the firm or Director of their Company, as the case may be, has any relation with any employee working in SAIL; and if so, give the name of the employee and the relationship. Information shall also be provided whether any of them has a relationship within the meaning of Section – 6 of the Companies Act 1956 with any of the Directors of SAIL; if so, give details.



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10 Any tender containing false information / particulars shall be liable to be rejected and tenderers found guilty of furnishing false information / particulars, may be debarred from future dealings as per prevailing procedures of Plant/Unit and EMD shall be forfeited.

11 The tenderer is at liberty to be present or authorize a representative, with proper authorization, to be present at the opening of the tender.

12 The tenderer shall not be liable to claim any costs, charges, expenses of and incidental to or occurred by him through or in connection with his submission of tender.

13 Joint participation in the tender by two or more firms shall not be accepted. 14 SAIL reserves the right to defer or pre-pone date for opening of tenders

mentioned in the tender documents at its sole discretion with intimation to the parties. Conditional tenders will not be considered.

15 Unless specified otherwise all the payments whether against EMD and Security Deposit

and value of materials as advance, shall be subject to the following :- Payment should be made by way of Demand Draft / Pay Order / Banker’s Cheque on a nationalised / scheduled bank drawn in favour of “SAIL concerned Plant / Unit” and payable at concerned Plant / Unit branch as specified in the Invitation to Tender. In the process of encashment of such DDs / POs / BCs, if any bank collection charge is paid / involved, the same shall be debited to the Successful Tenderer. No interest shall be payable against any deposit whatsoever whether the same is as EMD or Security Deposit or Advance value of materials, regardless of whether the contract is wholly or partially executed or remain unexecuted.

16 Acceptance Offer / Offer Letter When a tender is accepted by SAIL, the successful tenderer shall be notified by an “Acceptance Offer / Offer Letter” which will be despatched by post / courier / fax or handed over to the authorised representative of customer. This will indicate relevant details viz. description of goods, quantity, accepted rates, sale value, sales tax, other taxes & duties applicable on date, total amount of Security Deposit to be submitted, the time within which the Security Deposit is to be deposited, and last date of making payment / completing commercial formalities.

17 Security Deposit 17.1 The Successful Tenderer shall be required to furnish security deposit as indicated in

the tender by way of Demand Drafts / Pay Order / Banker’s Cheque as the case may be on a nationalized / scheduled bank drawn in favour of SAIL concerned Plant / Unit and payable at concerned Plant / Unit branch mentioned in the “Acceptance Offer / Offer Letter” within the stipulated time, failing which his / their order will stand cancelled and the EMD will be forfeited.

17.2 No interest shall accrue on SD/BG. 17.3 SAIL will be entitled to recover from the security deposit all the money due to SAIL

concerning to defaulting in conversion contract and other statutory liabilities of the conversion agent. 17.4 The refund of Security deposit / BG is subject to the satisfactory execution of the

tender. The security deposit will be refunded within 30 days of completion of the contract.

18 Taxes and Duties

18.1 All taxes and duties whether local, state, central or any other shall be payable by the conversion agent as applicable.

18.2 In the event of dispute in regard to Excise Duty and Central Excise authorities



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levying additional charges for any reasons whatsoever, such duty / charge shall be payable by the customer.

18.3 The penalty imposed by the Excise authorities for non-observance of Excise procedure by the customer shall be borne by the customer.

19 Failure to make payment In the event of failure on the part of the c onve rs i on ag e n t to make full payment against security deposit within the date specified in the Acceptance Offer / Offer Letter, SAIL, may at its sole discretion, cancel the contract and forfeit the earnest money / security deposit without issuing any prior notice to the customer or assigning any reason thereof.

20 Recovery of dues Any sum of money due and payable to the convers ion agent including security deposit ( returnable to him under this contract ) may be appropriated by SAIL and / or any unit of SAIL and adjusted against any claim / dues recoverable by them from the customer arising out of or under any other contract / tender made by customer with SAIL or any unit of SAIL.

21 Payment of Interest No interest will be paid on the amount paid by the convers ion agent and subsequently found refundable under any of the condition mentioned herein.

22 In case the convers ion agent or his representative is found involved in any unlawful activity and unauthorized or wrongful removal of materials not sold or in case of any attempt for such removal, this shall amount to breach of contract and SAIL shall be entitled to forfeit the entire Security Deposit. They shall be further liable for all the losses that might be caused to SAIL on account of such unlawful activity and unauthorised / wrongful removal. In such cases Plant/Unit may ban business dealings with such customer as per procedure prevailing in the Plant / Unit.

23 Illegal gratification Any bribes, commission, gifts or advantage given, promised or offered by or on behalf of the tenderer or his partner, agent, or servant to any officer, servant, representative, or agent of the company in relation to the obtaining or to the execution of this or any other contract with the company for showing or for bearing to show favour or dis-favour to any person shall be resulting into the cancellation of this contract.

24 Death, Bankruptcy etc. If the convers ion agent shall die, dissolve or become bankrupt or insolvent or cause or suffer any receiver to be appointed on his business or any assets thereof or compound with his creditors, or being a corporation commence to be wound up not being a members’ voluntary winding up for the purpose of amalgamation or reconstructions, or carry on its business under a receiver for the benefits of its creditors or any of them, the legal successor shall intimate SAIL in writing of such happening within one week from the date of such event and SAIL shall be at liberty to cancel or terminate the contract of sale forthwith upon coming to know of the happening of any such event as aforesaid by notice in writing to the customer or to the receiver, liquidator or any person, in whom the contract may become vested or to give such receiver, liquidator or other person th option of carrying out the contract of sale subject to his providing a guarantee for the due and faithful performance of the contract of sale.



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25 Conciliation All questions, claims, disputes and or differences of any kind whatsoever arising out of or in connection with or concerning this contract, at any time, whether before or after determination of the contract, shall be referred by the parties hereto for Conciliation before a Conciliatory Forum / Body.

The Conciliatory Forum / Body will be composed of the following members :-

i) Nominee of the Steel Plant / Unit – Independent of officer handling the contract.( to be nominated by the head of the concerned department.)

ii) Nominee of the convers ion agent . The parties in dispute would place their facts in writing before the Body / Forum and the process of conciliation would be completed within the period of three months from the date of reference to the Conciliatory Forum / Body. On failure of the conciliation, the aforesaid questions, claims, disputes and or differences shall be referred by the parties here to for the decision by a Sole Arbitrator to be appointed as herein after mentioned.

26 Arbitration Matters in question, claims, dispute and or difference in respect of the contract to be submitted to arbitration as aforesaid shall be referred for decision to a Sole Arbitrator to be appointed by CEO of Steel Plant / Head of unit, (SAIL). In case the designation of the CEO of Steel Plant (SAIL) is changed or his office abolished, the officer who for the time being is entrusted with the functions of the CEO of Steel Plant (SAIL), by whatever designation such officer is called, shall be the person designated to appoint the Sole Arbitrator. The arbitrator so appointed shall adjudicate upon the disputes between the parties hereto. Procedure for conduct of the arbitration proceeding shall be decided by the arbitrator, in consultation with the parties before proceeding with reference. The arbitrator may hold preparatory meeting(s) for this purpose. In the preparatory meeting(s) as aforesaid, the arbitrator/s as the case may be in consultation with the parties shall also determine the manner of taking evidence, the summoning of expert evidence, and all such matters as are necessary for the expeditious disposal of the arbitration proceedings. The provision of the Arbitration and Conciliation Act, 1996 and the rules framed there under, if any and all modifications / amendments thereto shall deem to apply and / or be incorporated in this contract and when such modifications / amendments to the Act / Rules are carried out. Work under the contract shall be continued by the contractor / customer, under the contract, during the arbitration proceedings and recourse to arbitration shall not be a bar to continuance for the work unless otherwise directed in writing by the Plant / Unit.

27 Legal Jurisdiction All suits and legal proceedings by or against SAIL Plant / Unit in any matter arising out of the tender shall be subject to the exclusive territorial jurisdiction of the courts at Rourkela only.



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28 Force Majeure conditions 28.1 If in the event either or both the parties to the contract is / are prevented from discharging its

/ their obligation(s) under the contract by reason of one or more of the events such as arrest(s), restraint(s) by Government of people, blockade(s), revolution(s), insurrection(s), mobilization(s), strike(s), civil commotion(s), riot(s), accident(s), Act(s) of God or other natural calamities or on account of any other act(s) beyond the control of the parties to the contract, the time of delivery shall be extended by the period equal to the period of delay / constraints occasioned by one or more of the aforesaid Force Majeure conditions. However in the event of customer invoking the Force Majeure condition(s), the Seller shall have the option to cancel the contract for reasons of any or all of the Force Majeure conditions notified by the customer without being able to pay any compensation whatsoever to the Seller.

28.2 On the occurrence of any of the above Force Majeure conditions, the party concerned shall

notify the other party in writing of such occurrence(s) within 7 days of occurrence(s) stating therein :

i) The date of occurrence(s) of Force Majeure disability and

ii) The nature of such Force Majeure disability along with a certificate from the appropriate Statutory Authority and / or Chamber of Commerce of the concerned state certifying the fact of the Force Majeure condition during the relevant period.

29 It shall be the responsibility of the persons submitting the tender to ensure that the tenders have been submitted in the formats and as per the terms & conditions prescribed in the SAIL website and no change is made therein before submission of their tender. In the event of any doubt regarding the terms & conditions formats the person concerned may seek clarifications from the authorised officer of SAIL. In case any tempering / unauthorised alteration is noticed in the tender submitted, from the tender document available on the SAIL website, the said tender shall be summarily rejected and the Company shall have no liability whatsoever on the matter. However, deviation if any proposed by the tenderer may be separately indicated for acceptance or otherwise of SAIL. Such proposed deviation if so indicated separately will not be treated as tempering for the purpose of application of this clause.

30 RESCINDING THE CONTRACT : SAIL/RSP reserves the right to suspend / terminate / short close the order if any supplier's performance is found unsatisfactory. The supplier will not be entitled to and claim any loss or damage because of and owing to such suspension / cancellation / termination / short closure and SAIL/RSP will not be liable for the same.

31 Any conflict between the General terms & conditions & Special terms & conditions,

the Special terms & conditions will be overriding and finally binding on the customer.



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ANNEXURE-V

Proforma for Bank Guarantee for Security Deposit Bond

(To be executed on non-judicial stamp paper of Rs.100/- to be purchased in the name of the issuing

bank)

To

Steel Authority of India Limited

Rourkela Steel Plants

P.O. Rourkela – 769011.

Odisha.

Bank Guarantee No./ Date:

Letter of Guarantee

1. Whereas <name of the firm> (Hereinafter referred to as the SELLER) and M/s STEEL AUTHORITY OF

INDIA LIMITED (Hereinafter referred to as the PURCHASER) has entered into a contract vide Purchase

Order no: ………………… Dated …………. (Hereinafter called the said Contract) for supply of …………… MT

of Quartzite to the PURCHASER.

2. We, (Name of the Bank......................................................................) at the request of the SELLER,

do hereby undertake and indemnify and keep indemnified the PURCHASER to the extent of

Rs.............................………………………(5% of the Purchase Order value i.e. Rs……………………………only)

against non supply /any loss or damage may be caused to or suffered by the PURCHASER, by reason

or any breach by the SELLER of any of the terms and conditions of the said CONTRACT and / or in the

performance of the said purchase order by the SELLER. We agree that the decision of the

PURCHASER, as to whether any breach of any of the terms and conditions of the said CONTRACT or

in the performance thereof has been committed by the SELLER and the amount of loss or damage

that has been caused to or suffered by the PURCHASER shall be final and binding on us and the

amount of the said loss or damage shall be paid by us forthwith to the PURCHASER on demand and

without protest or demur.

3. We, (Name of the Bank..........................................................), hereby further agree that the

guarantee herein contained shall remain in full force and perfect during the period that would be

taken for satisfactory performance and fulfilment in all respects of the said CONTRACT and that it

shall continue to be enforceable for (a) six months after the date of completion of supply of the said

CONTRACT or (b) in event of dispute (s) between the PURCHASER and the SELLER, until such period

(s) the dispute (s) is settled fully, whichever date is the latest, and that if any claim accrues or arises

us, (Name of the Bank ....................................................) by virtue of this guarantee before the dates

referred to hereinabove, whichever date is the latest, provided that notice of any such claim has

been given by the PURCHASER before the dates referred to hereinabove, as the case may be,



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payment under this LETTER OF GUARANTEE shall be made promptly upon our receiving the notice to

that effect from the PURCHASER in demand and without protest or demur.

4. It is fully understood that this guarantee shall become effective from the date of said CONTRACT and that we (Name of the Bank..............................................................................), undertake not to revoke this guarantee during its currency without the prior written consent of the PURCHASER. 5. We, (Name of the Bank...........................................................................), hereby further agree that

the PURCHASER shall have the fullest liberty, without affecting in any manner our obligations

hereunder, to vary any of the terms and conditions of the CONTRACT by the SELLER from time to

time or to postpone for any time or from time to time any of the powers exercisable by the

PURCHASER against the SELLER and to forbear or to enforce any of the terms and conditions relating

to the said CONTRACT and WE, (Name of the Bank..............................….), shall not be released from

our liability under the guarantee by reason of any such variation or extension, being granted to the

SELLER or any forbearance and / or omission on the part of the PURCHASER or any indulgence by the

PURCHASER or by any other matter or thing whatsoever which under the law relating to the sureties

would, but for the provision, have the effect of so releasing us from our liability under this guarantee.

6. We, (Name of the Bank................................................................................................), hereby

further agree that the guarantee herein contained is initially valid up to--------------------- and that the

same shall be extended further according to the provisions contained hereinabove.

7. We, (Name of the Bank................................................................................................), hereby

further agree that the guarantee herein contained can be operable from the local branches of

respective steel plants and shall not be effected by any change in the constitution of the SELLER and

/ or PURCHASER.

For and on behalf of (Name of the Bank................................................................)

Signature:

Name:

Duly constituted Attorney & Authorised Signatory

Designation with seal:



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ANNEXURE-VI

INTEGRITY PACT

Between

Steel Authority of India Limited (SAIL) hereinafter referred to as “The

Principal”,

and

…………………………………………… hereinafter referred to as “The Bidder/ Contractor”

Preamble

The Principal intends to award, under laid down organizational procedures,

contract/s for Ferro Silicon. The Principal values full compliance with all relevant laws

of the land, rules, regulations, economic use of resources and of fairness /

transparency in its relations with its Bidder(s) and / or Contractor(s).

In order to achieve these goals, the Principal will appoint an Independent External

Monitor (IEM), who will monitor the tender process and the execution of the contract

for compliance with the principles mentioned above.

Section 1 – Commitments of the Principal

(1) The Principal commits itself to take all measures necessary to prevent corruption and

to observe the following principles:-

a. No employee of the Principal, personally or through family members, will in

connection with the tender for , or the execution of a contract, demand, take a promise for or accept, for self or third person, any material or immaterial benefit

which the person is not legally entitled to.

b. The Principal will, during the tender process treat all Bidder(s) with equity and

reason. The Principal will in particular, before and during the tender process, provide to all Bidder(s) the same information and will not provide to any Bidder(s) confidential / additional information through which the Bidder(s) could obtain an

advantage in relation to the tender process or the contract execution.

c. The Principal will exclude from the process all known prejudiced persons.

(2) If the Principal obtains information on the conduct of any of its employees which is

a criminal offence under the IPC/PC Act, or if there be a substantive suspicion in this

regard, the Principal will inform the Chief Vigilance Officer and in addition can initiate

disciplinary actions.



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Section 2 – Commitments of the Bidder(s)/ contractor(s)

(1) The Bidder(s)/ Contractor(s) commit themselves to take all measures necessary to

prevent corruption. He commits himself to observe the following principles during his

participation in the tender process and during the contract execution.

a. The Bidder(s)/ Contractor(s) will not, directly or through any other person or firm,

offer, promise or give to any of the Principal’s employees involved in the tender process or the execution of the contract or to any third person any material or other benefit which he/she is not legally entitled to, in order to obtain in exchange any

advantage of any kind whatsoever during the tender process or during the execution of the contract.

b. The Bidder(s)/ Contractor(s) will not enter with other Bidders into any undisclosed agreement or understanding, whether formal or informal. This applies in particular to

prices, specifications, certifications, subsidiary contracts, submission or non-submission of bids or any other actions to restrict competitiveness or to introduce cartelisation in the bidding process.

c. The Bidder(s)/ Contractor(s) will not commit any offence under the relevant IPC/PC

Act; further the Bidder(s)/ Contractor(s) will not use improperly, for purposes of competition or personal gain, or pass on to others, any information or document

provided by the Principal as part of the business relationship, regarding plans, technical proposals and business details, including information contained or transmitted electronically.

d. The Bidder(s)/Contractors(s) of foreign origin shall disclose the name and address of

the Agents/representatives in India, if any. Similarly the Bidder(s)/Contractors(s) of Indian Nationality shall furnish the name and address of the foreign principals, if any. Further details as mentioned in the “Guidelines on Indian Agents of Foreign

Suppliers” shall be disclosed by the Bidder(s)/Contractor(s).Further, as mentioned in the Guidelines all the payments made to the Indian agent/representative have to be

in Indian Rupees only. Copy of the “Guidelines on Indian Agents of Foreign Suppliers” is placed at (page nos. 6-7)

e. The Bidder(s)/ Contractor(s) will, when presenting his bid, disclose any and all payments he has made, is committed to or intends to make to agents, brokers or

any other intermediaries in connection with the award of the contract.

(2) The Bidder(s)/ Contractor(s) will not instigate third persons to commit offences

outlined above or be an accessory to such offences.

Section 3- Disqualification from tender process and exclusion from future

contracts

If the Bidder(s)/Contractor(s), before award or during execution has committed a

transgression through a violation of Section 2, above or in any other form such as to

put his reliability or credibility in question, the Principal is entitled to disqualify the

Bidder(s)/Contractor(s) from the tender process or take action as per the procedure

mentioned in the “Guidelines on Banning of business dealings”. Copy of the

“Guidelines on Banning of business dealings” is placed at (page nos. 8-17).



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Section 4 – Compensation for Damages

(1) If the Principal has disqualified the Bidder(s) from the tender process prior to the

award according to Section 3, the Principal is entitled to demand and recover the

damages equivalent to Earnest Money Deposit/ Bid Security.

(2) If the Principal has terminated the contract according to Section 3, or if the Principal

is entitled to terminate the contract according to Section 3, the Principal shall be

entitled to demand and recover from the Contractor liquidated damages of the

Contract value or the amount equivalent to Performance Bank Guarantee.

Section 5 – Previous transgression

(1) The Bidder declares that no previous transgressions occurred in the last three years

with any other Company in any country conforming to the anti-corruption approach

or with any Public Sector Enterprise in India that could justify his exclusion from the

tender process.

(2) If the Bidder makes incorrect statement on this subject, he can be disqualified from

the tender process or action can be taken as per the procedure mentioned in

“Guidelines on Banning of business dealings”.

Section 6 – Equal treatment of all Bidders / Contractors / Subcontractors

(1) The Bidder(s)/ Contractor(s) undertake(s) to demand from all subcontractors a

commitment in conformity with this Integrity Pact, and to submit it to the Principal

before contract signing.

(2) The Principal will enter into agreements with identical conditions as this one with all

Bidders, Contractors and Subcontractors.

(3) The Principal will disqualify from the tender process all bidders who do not sign this

Pact or violate its provisions.

Section7:CriminalchargesagainstviolatingBidder(s)/Contractor(s)/Subcontractor(s)

If the Principal obtains knowledge of conduct of a Bidder, Contractor or Subcontractor, or

of an employee or a representative or an associate of a Bidder, Contractor or

Subcontractor which constitutes corruption, or if the Principal has substantive suspicion in

this regard, the Principal will inform the same to the Chief Vigilance Officer.

Section 8 : Independent External Monitor / Monitors

(1) The Principal appoints competent and credible Independent External Monitor for this

Pact. The task of the Monitor is to review independently and objectively, whether

and to what extent the parties comply with the obligations under this agreement.

(2) The Monitor is not subject to instructions by the representatives of the parties and

performs his functions neutrally and independently. It will be obligatory for him to

treat the information and documents of the Bidders/Contractors as confidential. He

reports to the Chairman, SAIL.

(3) The Bidder(s)/Contractor(s) accepts that the Monitor has the right to access without

restriction to all Project documentation of the Principal including that provided by the

Contractor. The Contractor will also grant the Monitor, upon his request and

demonstration of a valid interest, unrestricted and unconditional access to his



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project documentation. The same is applicable to Subcontractors. The Monitor is

under contractual obligation to treat the information and documents of the

Bidder(s)/ Contractor(s)/ Subcontractor(s) with confidentiality.

(4) The Principal will provide to the Monitor sufficient information about all meetings

among the parties related to the Project provided such meetings could have an

impact on the contractual relations between the Principal and the Contractor. The

parties offer to the Monitor the option to participate in such meetings.

(5) As soon as the Monitor notices, or believes to notice, a violation of this agreement,

he will so inform the Management of the Principal and request the Management to

discontinue or take corrective action, or to take other relevant action. The monitor

can in this regard submit non-binding recommendations. Beyond this, the Monitor

has no right to demand from the parties that they act in a specific manner, refrain

from action or tolerate action.

(6) The Monitor will submit a written report to the Chairman, SAIL within 8 to 10 weeks

from the date of reference or intimation to him by the Principal and, should the

occasion arise, submit proposals for correcting problematic situations.

(7) If the Monitor has reported to the Chairman SAIL, a substantiated suspicion of an

offence under relevant IPC/ PC Act, and the Chairman SAIL has not, within the

reasonable time taken visible action to proceed against such offence or reported it to

the Chief Vigilance Officer, the Monitor may also transmit this information directly to

the Central Vigilance Commissioner.

(8) The word ‘Monitor’ would include both singular and plural.

Section 9 – Pact Duration

This Pact begins when both parties have legally signed it. It expires for the

Contractor 12 months after the last payment under the contract, and for all other

Bidders 6 months after the contract has been awarded.

If any claim is made / lodged during this time, the same shall be binding and

continue to be valid despite the lapse of this pact as specified above, unless it is

discharged / determined by Chairman of SAIL.

Section 10 – Other provisions

(1) This agreement is subject to Indian Law. Place of performance and jurisdiction is the

Registered Office of the Principal, i.e. New Delhi.

(2) Changes and supplements as well as termination notices need to be made in

writing. Side agreements have not been made.

(3) If the Contractor is a partnership or a consortium, this agreement must be signed by

all partners or consortium members.

(4) Should one or several provisions of this agreement turn out to be invalid, the

remainder of this agreement remains valid. In this case, the parties will strive to come to an agreement to their original intentions.

(5) In the event of any contradiction between the Integrity Pact and its Annexure, the

Clause in the Integrity Pact will prevail.”



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For & on behalf of Principal ( For & On behalf of Bidder/ Contractor)

_____________________

(signature & Office Seal)

Place --------------

Date --------------

Witness 1: (Signature)

(Name & Address) _____________________________

_____________________________

_____________________________

_____________________________

Witness 2: (Signature)

(Name & Address) _____________________________

_____________________________

_____________________________

_____________________________



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GUIDELINES FOR INDIAN AGENTS OF FOREIGN SUPPLIERS

1.0 There shall be compulsory registration of agents for all Global (Global) Tender and

Limited Tender. An agent who is not registered with SAIL Plants/Units shall apply for

registration in the prescribed Application –Form.

1.1 Registered agents will file an authenticated Photostat copy duly attested by a Notary Public/Original certificate of the principal confirming the agency agreement and giving the status being enjoyed by the agent and the commission/remuneration/salary/ retainer ship being paid by the principal to the agent before the placement of order by SAIL Plants/Units.

1.2 Wherever the Indian representatives have communicated on behalf of their principals and the foreign parties have stated that they are not paying any commission to the Indian agents, and the Indian representative is working on the basis of salary or as retainer, a written declaration to this effect should be submitted by the party (i.e. Principal) before finalizing the order

2.0 DISCLOSURE OF PARTICULARS OF AGENTS/ REPRESENTATIVES IN INDIA. IF ANY.

2.1 Tenderers of Foreign nationality shall furnish the following details in their offer:

2.1.1 The name and address of the agents/representatives in India, if any and the extent of

authorization and authority given to commit the Principals. In case the

agent/representative be a foreign Company, it shall be confirmed whether it is real

substantial Company and details of the same shall be furnished.

2.1.2 The amount of commission/remuneration included in the quoted price(s) for such

agents/representatives in India.

2.1.3 Confirmation of the Tenderer that the commission/ remuneration if any, payable to his

agents/representatives in India, may be paid by SAIL in Indian Rupees only.

2.2 Tenderers of Indian Nationality shall furnish the following details in their offers:

2.2.1 The name and address of the foreign principals indicating their nationality as well as

their status, i.e, whether manufacturer or agents of manufacturer holding the Letter of

Authority of the Principal specifically authorizing the agent to make an offer in India in

response to tender either directly or through the agents/representatives.

2.2.2 The amount of commission/remuneration included in the price (s) quoted by the

Tenderer for himself.

2.2.3 Confirmation of the foreign principals of the Tenderer that the

commission/remuneration, if any, reserved for the Tenderer in the quoted price (s),

may be paid by SAIL in India in equivalent Indian Rupees on satisfactory completion

of the Project or supplies of Stores and Spares in case of operation items .



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2.3 In either case, in the event of contract materializing, the terms of payment will provide

for payment of the commission /remuneration, if any payable to the

agents/representatives in India in Indian Rupees on expiry of 90 days after the

discharge of the obligations under the contract.

2.4 Failure to furnish correct and detailed information as called for in paragraph-2.0 above

will render the concerned tender liable to rejection or in the event of a contract

materializing, the same liable to termination by SAIL. Besides this there would be a

penalty of banning business dealings with SAIL or damage or payment of a named sum.

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Guidelines on Banning of Business Dealings

CONTENTS

S.No. Page(s)

1. Introduction 9

2. Scope 9

3. Definitions 10-11

4. Initiation of Banning / Suspension 11

5. Suspension of Business Dealings 11-13

6. Ground on which Banning of Business Dealing can be

initiated

13-14

7. Banning of Business Dealings 14-16

8. Removal from List of Approved Agencies-Suppliers/

Contractors etc.

16

9. Show-cause Notice 16

10. Appeal against the Decision of the Competent Authority 17

11. Review of the Decision by the Competent Authority 17

12. Circulation of the names of Agencies with whom

Business Dealings have been banned

17



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1. Introduction

1.1 Steel Authority of India Limited (SAIL), being a Public Sector Enterprise and ‘State’, within the meaning of

Article 12 of Constitution of India, has to ensure preservation of rights enshrined in Chapter III of the Constitution.

SAIL has also to safeguard its commercial interests. SAIL deals with Agencies, who have a very high degree of

integrity, commitments and sincerity towards the work undertaken. It is not in the interest of SAIL to deal with

Agencies who commit deception, fraud or other misconduct in the execution of contracts awarded / orders issued

to them. In order to ensure compliance with the constitutional mandate, it is incumbent on SAIL to observe

principles of natural justice before banning the business dealings with any Agency.

1.2 Since banning of business dealings involves civil consequences for an Agency concerned, it is incumbent

that adequate opportunity of hearing is provided and the explanation, if tendered, is considered before passing any

order in this regard keeping in view the facts and circumstances of the case.

2. Scope

2.1 The General Conditions of Contract (GCC) of SAIL generally provide that SAIL reserves its rights to remove

from list of approved suppliers / contractors or to ban business dealings if any Agency has been found to have

committed misconduct and also to suspend business dealings pending investigation. If such provision does not

exist in any GCC, the same may be incorporated.

2.2 Similarly, in case of sale of material there is a clause to deal with the Agencies / customers / buyers, who

indulge in lifting of material in unauthorized manner. If such a stipulation does not exist in any Sale Order, the

same may be incorporated.

2.3 However, absence of such a clause does not in any way restrict the right of Company (SAIL) to take action /

decision under these guidelines in appropriate cases.

2.4 The procedure of (i) Removal of Agency from the List of approved suppliers / contractors; (ii) Suspension

and (iii) Banning of Business Dealing with Agencies, has been laid down in these guidelines.

2.5 These guidelines apply to all the Plants / Units and subsidiaries of SAIL.

2.6 It is clarified that these guidelines do not deal with the decision of the Management not to entertain any

particular Agency due to its poor / inadequate performance or for any other reason.

2.7 The banning shall be with prospective effect, i.e., future business dealings.



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3. Definitions

In these Guidelines, unless the context otherwise requires:

i) ‘Party / Contractor / Supplier / Purchaser / Customer/Bidder/Tenderer’ shall mean and include a public limited

company or a private limited company, a firm whether registered or not, an individual, a cooperative society

or an association or a group of persons engaged in any commerce, trade, industry, etc. ‘Party / Contractor /

Supplier / Purchaser / Customer/ Bidder / Tenderer’ in the context of these guidelines is indicated as ‘Agency’.

ii) ‘Inter-connected Agency’ shall mean two or more companies having any of the following features:

a) If one is a subsidiary of the other.

b) If the Director(s), Partner(s), Manager(s) or Representative(s) are common;

c) If management is common;

d) If one owns or controls the other in any manner;

iii) ‘Competent Authority’ and ‘Appellate Authority’ shall mean the following:

a) For Company (entire SAIL) Wide Banning

The Director (Technical) shall be the ‘Competent Authority’ for the purpose of these guidelines. Chairman,

SAIL shall be the ‘Appellate Authority’ in respect of such cases except banning of business dealings with

Foreign Suppliers of imported coal/coke.

b) For banning of business dealings with Foreign Suppliers of imported coal/coke, SAIL Directors’ Committee

(SDC) shall be the ‘Competent Authority’. The Appeal against the Order passed by SDC, shall lie with

Chairman, as First Appellate Authority.

c) In case the foreign supplier is not satisfied by the decision of the First Appellate Authority, it may approach

SAIL Board as Second Appellate Authority.

d) For Plants / Units only

Any officer not below the rank of General Manager / Addl Director appointed or nominated by the Chief

Executive of concerned Plant / Unit shall be the ‘Competent Authority’ for the purpose of these guidelines. The

Chief Executives of the concerned Plants / Unit shall be the ‘Appellate Authority’ in all such cases.

e) For Corporate Office only

For procurement of items / award of contracts, to meet the requirement of Corporate Office only, Head of

CMMG shall be the “Competent Authority” and Director (Technical) shall be the “Appellate Authority”.

e) Chairman, SAIL shall have overall power to take suo-moto action on any information available or received by

him and pass such order(s) as he may think appropriate, including modifying the order(s) passed by any

authority under these guidelines.



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iv) ‘Investigating Department’ shall mean any Department or Unit investigating into the conduct of the Agency

and shall include the Vigilance Department, Central Bureau of Investigation, the State Police or any other

department set up by the Central or State Government having powers to investigate.

v) ‘List of approved Agencies - Parties / Contractors / Suppliers / Purchasers / Customers / Bidders / Tenderers

shall mean and include list of approved / registered Agencies - Parties/ Contractors / Suppliers / Purchasers /

Customers / Bidders / Tenderers, etc.

4. Initiation of Banning / Suspension

Action for banning / suspension business dealings with any Agency should be initiated by the department

having business dealings with them after noticing the irregularities or misconduct on their part. Besides the

concerned department, Vigilance Department of each Plant / Unit /Corporate Vigilance may also be

competent to initiate such action.

5. Suspension of Business Dealings

5.1 If the conduct of any Agency dealing with SAIL is under investigation by any department (except Foreign

Suppliers of imported coal/coke), the Competent Authority may consider whether the allegations under

investigation are of a serious nature and whether pending investigation, it would be advisable to continue

business dealing with the Agency. If the Competent Authority, after consideration of the matter including the

recommendation of the Investigating Department, if any, decides that it would not be in the interest to

continue business dealings pending investigation, it may suspend business dealings with the Agency. The

order to this effect may indicate a brief of the charges under investigation. If it is decided that inter-connected

Agencies would also come within the ambit of the order of suspension, the same should be specifically stated

in the order. The order of suspension would operate for a period not more than six months and may be

communicated to the Agency as also to the Investigating Department. The Investigating Department may

ensure that their investigation is completed and whole process of final order is over within such period.

5.2 The order of suspension shall be communicated to all Departmental Heads within the Plants / Units. During

the period of suspension, no business dealing may be held with the Agency.

5.3 As far as possible, the existing contract(s) with the Agency may continue unless the Competent Authority,

having regard to the circumstances of the case, decides otherwise.

5.4 If the gravity of the misconduct under investigation is very serious and it would not be in the interest of SAIL,

as a whole, to deal with such an Agency pending investigation, the Competent Authority may send his

recommendation to Chief Vigilance Officer (CVO), SAIL Corporate Office alongwith the material available. If

Corporate Office considers that depending upon the gravity of the misconduct, it would not be desirable for all

the Plants / Units and Subsidiaries of SAIL to have any dealings with the Agency concerned, an order

suspending business dealings may be issued to all the Plants / Units by the Competent Authority of the

Corporate Office, copy of which may be endorsed to the Agency concerned. Such an order would operate for

a period of six months from the date of issue.



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5.5 For suspension of business dealings with Foreign Suppliers of imported coal/coke, following shall be the procedure :-

i) Suspension of the foreign suppliers shall apply through out the Company including Subsidiaries.

ii) Based on the complaint forwarded by ED (CIG) or received directly by Corporate Vigilance, if gravity of the

misconduct under investigation is found serious and it is felt that it would not be in the interest of SAIL to continue

to deal with such agency, pending investigation, Corporate Vigilance may send such recommendation on the

matter to Executive Director, Coal Import Group (ED, CIG) to place it before a Committee consisting of the

following :

1. ED (F&A)/Head of Corporate Finance,

2. ED, CIG/Head of CIG – Convenor of the Committee

3. ED, CMMG/Head of CMMG, Corporate Office

4. ED (Law)/Head of Corporate Law

The committee shall expeditiously examine the report, give its comments/recommendations within twenty one

days of receipt of the reference by ED, CIG.

iii) The comments / recommendations of the Committee shall then be placed by ED, CIG before SAIL Directors’

Committee (SDC) constituted for import of Coal. If SDC opines that it is a fit case for suspension, SDC may pass

necessary orders which shall be communicated to the foreign supplier by ED, CIG.

5.6 If the Agency concerned asks for detailed reasons of suspension, the Agency may be informed that its

conduct is under investigation. It is not necessary to enter into correspondence or argument with the Agency at

this stage.

5.7 It is not necessary to give any show-cause notice or personal hearing to the Agency before issuing the order

of suspension. However, if investigations are not complete in six months time, the Competent Authority may

extend the period of suspension by another three months, during which period the investigations must be

completed.

6. Ground on which Banning of Business Dealings can be initiated

6.1 If the security consideration, including questions of loyalty of the Agency to the State, so warrants;

6.2 If the Director / Owner of the Agency, proprietor or partner of the firm, is convicted by a Court of Law for

offences involving moral turpitude in relation to its business dealings with the Government or any other public

sector enterprises or SAIL, during the last five years;

6.3 If there is strong justification for believing that the Directors, Proprietors, Partners, owner of the Agency

have been guilty of malpractices such as bribery, corruption, fraud, substitution of tenders, interpolations, etc;



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6.4 If the Agency continuously refuses to return / refund the dues of SAIL without showing adequate reason

and this is not due to any reasonable dispute which would attract proceedings in arbitration or Court of Law;

6.5 If the Agency employs a public servant dismissed / removed or employs a person convicted for an offence

involving corruption or abetment of such offence;

6.6 If business dealings with the Agency have been banned by the Govt. or any other public sector enterprise;

6.7 If the Agency has resorted to Corrupt, fraudulent practices including misrepresentation of facts and / or

fudging /forging /tampering of documents;

6.8 If the Agency uses intimidation / threatening or brings undue outside pressure on the Company (SAIL) or its

official in acceptance / performances of the job under the contract;

6.9 If the Agency indulges in repeated and / or deliberate use of delay tactics in complying with contractual

stipulations;

6.10 Willful indulgence by the Agency in supplying sub-standard material irrespective of whether pre-despatch

inspection was carried out by Company (SAIL) or not;

6.11 Based on the findings of the investigation report of CBI / Police against the Agency for malafide / unlawful

acts or improper conduct on his part in matters relating to the Company (SAIL) or even otherwise;

6.12 Established litigant nature of the Agency to derive undue benefit;

6.13 Continued poor performance of the Agency in several contracts;

6.14 If the Agency misuses the premises or facilities of the Company (SAIL), forcefully occupies, tampers or

damages the Company’s properties including land, water resources, forests / trees, etc.

(Note: The examples given above are only illustrative and not exhaustive. The Competent Authority may decide

to ban business dealing for any good and sufficient reason).

7 Banning of Business Dealings

7.1 Normally, a decision to ban business dealings with any Agency should apply throughout the Company

including Subsidiaries. However, the Competent Authority of the Plant / Unit except Corporate Office can

impose such ban unit-wise only if in the particular case banning of business dealings by respective Plant / Unit

will serve the purpose and achieve its objective and banning throughout the Company is not required in view

of the local conditions and impact of the misconduct / default to beyond the Plant / Unit. Any ban imposed by

Corporate Office shall be applicable across all Plants / Units of the Company including Subsidiaries.



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7.2 For Company-wide banning, the proposal should be sent by ACVO of the Plant / Unit to the CVO through the

Chief Executive of the Plant / Unit setting out the facts of the case and the justification of the action proposed

along with all the relevant papers and documents except for banning of business dealings with Foreign

Suppliers of imported coal/coke.

The Corporate Vigilance shall process the proposal of the Plant / Unit for a prima-facie view in the matter by the

Competent Authority nominated for Company-wide banning.

The CVO shall get feedback about that agency from all other Plants / Units. Based on this feedback, a prima-facie

decision for banning / or otherwise shall be taken by the Competent Authority.

If the prima-facie decision for Company-wide banning has been taken, the Corporate Vigilance shall issue a show-

cause notice to the agency conveying why it should not be banned throughout SAIL.

After considering the reply of the Agency and other circumstances and facts of the case, a final decision for

Company-wide banning shall be taken by the Competent Authority.

7.3 There will be a Standing Committee in each Plant / Unit to be appointed by Chief Executive for processing

the cases of “Banning of Business Dealings” except for banning of business dealings with foreign suppliers of

coal/coke. However, for procurement of items / award of contracts, to meet the requirement of Corporate

Office only, the committee shall be consisting of General Manager / Dy. General Manager each from

Operations, Finance, Law & CMMG. Member from CMMG shall be the convener of the committee. The

functions of the committee shall, inter-alia include:

i) To study the report of the Investigating Agency and decide if a prima-facie case for Company-wide / Local

unit wise banning exists, if not, send back the case to the Competent Authority.

ii) To recommend for issue of show-cause notice to the Agency by the concerned department.

iii) To examine the reply to show-cause notice and call the Agency for personal hearing, if required.

iv) To submit final recommendation to the Competent Authority for banning or otherwise.

7.4 If the Competent Authority is prima-facie of view that action for banning business dealings with the Agency is

called for, a show-cause notice may be issued to the Agency as per paragraph 9.1 and an enquiry held

accordingly.

7.5 Procedure for Banning of Business Dealings with Foreign Suppliers of imported coal/coke.

i) Banning of the agencies shall apply through out the Company including Subsidiaries.



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ii) Based on the complaint forwarded by ED (CIG) or received directly by Corporate Vigilance, an investigation

shall be carried out by Corporate Vigilance. After investigation depending upon the gravity of the

misconduct, Corporate Vigilance may send their report to Executive Director, Coal Import Group to be placed

before a Committee consisting of the following :-

1. ED (F&A)/Head of Corporate Finance,

2. ED, CIG/Head of CIG – Convener of the Committee

3. ED, CMMG/Head of CMMG, Corporate Office

4. ED (Law)/Head of Corporate Law

The Committee shall examine the report and give its comments / recommendations within 21 days of receipt of the

reference by ED, CIG.

iii) The comments / recommendations of the Committee shall be placed by ED, CIG before SAIL Directors’

Committee (SDC) constituted for import of Coal. If SDC opines that it is a fit case for initiating banning action,

it will direct ED (CIG) to issue show-cause notice to the agency for replying within a reasonable period.

iv) On receipt of the reply or on expiry of the stipulated period, the case shall be submitted by ED (CIG) to SDC

for consideration & decision.

v) The decision of the SDC shall be communicated to the agency by ED (CIG).



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8 Removal from List of Approved Agencies - Suppliers / Contractors, etc.

8.1 If the Competent Authority decides that the charge against the Agency is of a minor nature, it may issue a

show-cause notice as to why the name of the Agency should not be removed from the list of approved

Agencies - Suppliers / Contractors, etc.

8.2 The effect of such an order would be that the Agency would not be disqualified from competing in Global

Tender Enquiries but LTE may not be given to the Agency concerned.

8.3 Past performance of the Agency may be taken into account while processing for approval of the Competent

Authority for awarding the contract.

9 Show-cause Notice

9.1 In case where the Competent Authority decides that action against an Agency is called for, a show-cause

notice has to be issued to the Agency. Statement containing the imputation of misconduct or mis-behaviour

may be appended to the show-cause notice and the Agency should be asked to submit within 15 days a

written statement in its defence.

9.2 If the Agency requests for inspection of any relevant document in possession of SAIL, necessary facility for

inspection of documents may be provided.

9.3 The Competent Authority may consider and pass an appropriate speaking order:

a) For exonerating the Agency if the charges are not established;

b) For removing the Agency from the list of approved Suppliers / Contactors, etc.

c) For banning the business dealing with the Agency.

9.4 If it decides to ban business dealings, the period for which the ban would be operative may be mentioned.

The order may also mention that the ban would extend to the interconnected Agencies of the Agency.

10 Appeal against the Decision of the Competent Authority

10.1 The Agency may file an appeal against the order of the Competent Authority banning business dealing, etc.

The appeal shall lie to Appellate Authority. Such an appeal shall be preferred within one month from the

date of receipt of the order banning business dealing, etc.

10.2 Appellate Authority would consider the appeal and pass appropriate order which shall be communicated to

the Agency as well as the Competent Authority.



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11 Review of the Decision by the Competent Authority

Any petition / application filed by the Agency concerning the review of the banning order passed originally

by Chief Executive / Competent Authority under the existing guidelines either before or after filing of appeal

before the Appellate Authority or after disposal of appeal by the Appellate Authority, the review petition can

be decided by the Chief Executive / Competent Authority upon disclosure of new facts / circumstances or

subsequent development necessitating such review. The Competent Authority may refer the same petition

to the Standing Committee for examination and recommendation.

12 Circulation of the names of Agencies with whom Business Dealings have been

banned

12.1 Depending upon the gravity of misconduct established, the Competent Authority of the Corporate Office

may circulate the names of Agency with whom business dealings have been banned, to the Government

Departments, other Public Sector Enterprises, etc. for such action as they deem appropriate.

12.2 If Government Departments or a Public Sector Enterprise request for more information about the Agency

with whom business dealings have been banned, a copy of the report of Inquiring Authority together with a

copy of the order of the Competent Authority / Appellate Authority may be supplied.

12.3 If business dealings with any Agency has been banned by the Central or State Government or any other

Public Sector Enterprise, SAIL may, without any further enquiry or investigation, issue an order banning

business dealing with the Agency and its inter-connected Agencies.

12.4 Based on the above, Plants / Units may formulate their own procedure for implementation of the Guidelines

and same be made a part of the tender documents.

****************************