Request for Qualification (RFQ) for Selection of Joint ... for... · 1.3 M/s Rashtriya Ispat Nigam Limited - Visakhapatnam Steel Plant (RINL-VSP) popularly known as ‘Vizag Steel’,
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RFQ for selection of JV Partner(s) for
Slurry Pipeline & Pellet Plant
MEC/11/15/U999/NMDC JV/RFQ/JV PARTNER/01 Page 1 of 17
M/s NMDC Ltd. have made valuable and substantial contribution to the National
efforts in the mineral sector during the last five decades and has been accorded the status of schedule-A Public Sector Company. In recognition to the Company's
growing status and consistent excellent performance, the Company has been
categorized by the Department of Public Enterprises as "NAVRATNA" Public
Sector Enterprise in 2008.
Besides exploration and mining activities, NMDC has also diversified in the field
of renewable energy sector. NMDC has set up a 10.5 MW capacity wind mill in
Karnataka. As part of value addition, NMDC is in the process of setting up a green
field 3 Mtpa capacity integrated steel plant through BF-BOF route at Nagarnar,
district Bastar in the State of Chhattisgarh, India.
The Company achieved an annual turnover of Rs 10,704 crores and posted net profit
of Rs 6,342 crores in FY 2012-13. Its shares are listed in the Stock Exchange (BSE
& NSE). The information on current value at which NMDC shares are being traded in the market can be obtained by visiting website
www.nmdc.co.in/investor/stockprice. Government of India has recently reduced its equity share holding in the Company through disinvestment of 10% government
shares.
Further information about the Company is available at website www.nmdc.co.in.
popularly known as ‘Vizag Steel’, a leading Central PSU & a Navratna Company
under the Ministry of Steel is the first shore based Integrated Steel Plant in the country. The Company was established in the year 1982 with its Headquarters in
Visakhapatnam. RINL is a market leader in longs with a share of about 10%. Its product-mix include Wire Rods, Rounds, Square, Flats, Channels, Angles &
Universal beams. It has been supplying various grades of steel for construction of projects of National importance which include Metros, Power Sector, Bridges,
Nuclear complexes etc. RINL has exported finished products to countries like USA,
UAE, Thailand, Bangladesh, Nepal, Sri Lanka etc. Its products are made from 100%
virgin steel. RINL has a wide marketing network spread across the country.
RINL has long term directional plans to expand the capacity of liquid steel to 20
million tonnes in phases by the year 2020 to maintain its important position in the
Indian steel market. Under on-going expansion programme, RINL plans to double
its capacity to 6.3 Mtpa of liquid steel. The first phase of Expansion to 6.3 Mtpa
liquid steel has been brought to the stage of hot commissioning. In addition to
RFQ for selection of JV Partner(s) for
Slurry Pipeline & Pellet Plant
MEC/11/15/U999/NMDC JV/RFQ/JV PARTNER/01 Page 5 of 17
expansion, RINL is also in the process of adding capacities through revamping / up
gradation of existing units like Blast Furnaces, Converters, Sinter Plant and other associated facilities with which capacity will go up to 7.3 mtpa of Liquid steel.
RINL has taken number of initiatives for growth of business of the company in
addition to its expansion plan, which includes formation of Joint Ventures,
acquisition of mineral assets for raw material security, mergers etc. Among many
such strategic initiatives taken by RINL, an MOU with NMDC for Slurry Pipeline
and Pelletisation Plant has also been signed.
In the FY 2011-12, RINL recorded an annual turnover of Rs 14,462 crores and
posted post-tax profit of Rs 751 crores.
Further information about the Company is available at website
www.vizagsteel.com.
2.0 Project Background and Status
2.1 Project Background
2.1.1 As part of further value addition, NMDC intends to set up a 6.0 MTPA iron ore
processing plant at Kirandul and a 4.0 MTPA iron ore processing plant at Bacheli
(both in Bailadila sector of Chhattisgarh) for production of Blast Furnace pellet
grade concentrate. This concentrate is envisaged to be transported through a
slurry pipeline system from Kirandul via Bacheli and Nagarnar to Visakhapatnam
(Vizag) in Andhra Pradesh (AP). The concentrate off-take would be 2.0 MTPA at
Nagarnar and 8.0 MTPA at Vizag as feed for pellet plants / sale.
Additionally, about 5.0 MTPA of iron ore concentrate from third parties is also
envisaged to be transported from Bacheli / Kirandul up to Vizag using the above
mentioned slurry transporation system at mutually agreed terms & conditions.
As such, a 15 MTPA (design capacity) iron ore concentrate slurry pipeline system
with associated facilities has been proposed to be installed from Bacheli to
Nagarnar. Further, a 13 MTPA (design capacity) iron ore concentrate pipeline
system is envisaged from Nagarnar to Vizag. Two pellet plants (one of 2 MTPA
capacity at Nagarnar and another of 6 MTPA capacity at Vizag) are also envisaged.
2.1.2 The above project is envisaged to be executed in two separate works as follows :
RFQ for selection of JV Partner(s) for
Slurry Pipeline & Pellet Plant
MEC/11/15/U999/NMDC JV/RFQ/JV PARTNER/01 Page 6 of 17
4.2.1 The average annual turnover of the Applicant should be minimum INR 500 crores
(USD 80 Million) over past three consecutive financial years previous to the date of
RFQ. Only gross sales shall be considered for the purpose of determination of
turnover.
4.2.2 The net worth of the Applicant should be positive for past three consecutive
financial years and minimum INR 150 crores (USD 25 Million) in the last financial
year i.e. as on 31.3.2013.
4.2.3 The Aplicant should have capability to raise funds (both equity & debt) for this JV project at competitive terms. The Applicant should submit along with their Pre-
Qualification Application their Banker/s certificate (issued in 2013) stating their borrowing limits to support their financial capability. Such bank can be
Nationalized bank, Private bank or Foreign bank.
5.0 Information / Documents to be furnished by the Prospective joint venture
partner(s)
Pre-Qualification Application giving details about background, financial position, operations, organization and other relevant information shall be submitted along
with the following documents :
1. Certificate of incorporation issued by the Registrar of Companies.
2. Certified copies of MOA ( Memorandum of Association) / AOA (Article of
Association)
3. Last three consecutive years annual reports with audited balance sheet and profit
& loss account covering information on turnover, net worth and net profit.
4. Banker/s certificate (issued in 2013) stating the applicant’s borrowing limits to
support their financial capability.
5. Contact details of Designated Persons authorized to communicate with NMDC and MECON.
6. All relevant documents in support of fulfilment of the technical & financial eligibility criteria as indicated in Section 4.0 above.
A statement from the applicant substantiating his claim for fulfilment of the
above stipulated Eligibility Criteria ( under 4.1 & 4.2) shall be submitted,
RFQ for selection of JV Partner(s) for
Slurry Pipeline & Pellet Plant
MEC/11/15/U999/NMDC JV/RFQ/JV PARTNER/01 Page 9 of 17
furnishing therewith the relevant references in the supporting documents
submitted.
7. Power of Attorney/ Authorisation in respect of the signatory to the PQ
Application
6.0 Procedure for submission of Pre-Qualification Application & Time Schedule
6.1 Interested eligible prospective joint venture partner(s) should submit the Pre-Qualification Application alongwith all supporting information / documents together
with a sum (Refundable) of Rs 10,00,000/- (Indian Rupees Ten Lakh Only) either through electronic transfer or through Demand draft favouring “NMDC LTD.”
drawn on any Scheduled Commercial Bank, payable at Hyderabad, INDIA. The Pre-Qualification Application shall be submitted in one original and 6 (six) identical
copies. In case of any discrepancy between the original and the copies, the original
shall prevail. The Pre-Qualification Application shall remain open for short-listing
for a minimum period of 4 (four) months from the deadline for submission of Pre-
Qualification Applications.
The above sum of Rs. 10,00,000/- shall be refunded without any interest to the
unsuccessful applicants after finalisation of short-listed applicants. However, in the
event, an applicant withdraws from the short-listing process, the above sum of Rs.
10,00,000/- shall be forfeited and appropriated by NMDC.
In respect of the applicants who are short-listed for the next stage (bid stage), the
above sum shall serve as the Bid Security, which, subject to provisions of the next
stage i:e bid stage, shall be refundable to the unsuccessful bidders, except in the case
of the Selected Bidder whose Bid Security shall be retained till the Share
Acquisition & Shareholders’ Agreement or any such agreement for the Joint Venture Company is signed by the parties.
The refund of aforesaid sum to unsuccessful applicants, shall be in the form of an
account payee demand draft in favour of the unsuccessful applicants. The said demand draft shall be drawn by NMDC for refund in the name of the applicant and
shall be mailed to the address given in the Pre-Qualification Application.
Cost of RFQ document (Non refundable) of Rs.5000/- (Rupees five thousand only) is to be paid in form of Demand draft in favour of NMDC Limited, payable at
Hyderabad.
RFQ for selection of JV Partner(s) for
Slurry Pipeline & Pellet Plant
MEC/11/15/U999/NMDC JV/RFQ/JV PARTNER/01 Page 10 of 17
The Pre-Qualification Application addressed as above may be sent by Registered
Post or Speed Post, through Courier service or may be delivered in person so as to
reach the addressee within the time schedule specified above. However, Advance
Copy can also be sent through facsimile or email or in CD followed by the Hard
Copy within the above mentioned period.
Any Pre-Qualification Application will be deemed to be late if the “Hard Copy” is received after the last date & Time of Submission. Such late received Pre-
Qualification Application shall not be considered and will be summarily rejected.
Pre-Qualification Applications shall be opened at 16.00 Hrs on the due date of submission indicated above, in presence of duly authorised representatives of the
applicants who choose to be present.
No Applicant shall submit more than one PQ Application.
6.3 A Pre-Application conference of the interested parties shall be convened on
04.09.2013 at 10.30 Hrs at MECON Ltd. Ranchi. A maximum of two
representatives of each prospective Applicant shall be allowed to participate on
production of authorisation from the prospective Applicant.
During the course of Pre-Application conference, the prospective Applicants may
seek clarifications and make suggestions for consideration of NMDC/RINL.
NMDC/RINL shall endeavour to provide clarifications and such further information
as it may, in its sole discretion, consider appropriate.
6.4 NMDC/RINL shall shortlist the applicants found suitable as per eligibility criteria.
6.5 Short-listed companies shall be invited for next level of participation. In the event of
RFQ for selection of JV Partner(s) for
Slurry Pipeline & Pellet Plant
MEC/11/15/U999/NMDC JV/RFQ/JV PARTNER/01 Page 11 of 17