RASHTRIYA ISPAT NIGAM LIMITED

VISAKHAPATNAM STEEL PLANT

(A GOVERNMENT OF INDIA UNDERTAKING)

MARKETING DEPARTMENT

BRANCH SALES OFFICE – HEAD QUARTER SALES

PROJECT OFFICE COMPLEX (D – BLOCK)

NEAR MAIN ADMINISTRATIVE BUILDING

VISAKHAPATNAM - 530 031

OFFICE TELPHONE NO: 0891-2706945,2518026 / FAX NO.0891-2518460

E Mail ID : vizag.bso@vizagsteel.com

INVITES

EXPRESSION OF INTEREST

F O R

SALE OF PIG IRON

THROUGH MOU

website : www.vizagsteel.com

1. About RINL :

Rashtriya Ispat Nigam Limited - Visakhapatnam Steel Plant (RINL-VSP)

popularly known as ‘Vizag Steel’ the ‘Pride of Steel’, a leading Central PSU

under the Ministry of Steel is the first shore based Integrated Steel Plant in

the country. In addition to various grades of steel for construction of

projects of National importance, manufacturing sector, RINL is also making

Pig Iron (Steel Making LSB grade). RINL-VSP has a wide marketing network

spreaded across the country and is the “preferred steel maker” for the

customers.

2. Objective of EOI:

With a view to know the possible market requirement and decide production

plan to make supply of Pig Iron (Steel making LSB grade) from time to time,

RINL,VSP wishes to enter into an MOU (as per Annexure-2) with interested

customers. Hence RINL, VSP invites Expression of Interest (EOI) from the

prospective customers (manufacturer/Trader/any business entity) which

fulfill the criteria as mentioned below. Only those applications received

through this EOI mode shall be considered for MOU purposes.

3. Eligibility Criteria for Applicants of EOI:

(a) Customer should have minimum 3 years of business experience.

(b) Customer should have valid ST/VAT and Excise registration.

4. Minimum Lifting under MOU:

4.1 MOU customer has to lift a minimum quantity of 2 rake loads or equivalent

of 7400 MTs of Pig Iron every month from Nov’12 to Mar’13.

4.2 MOU customer is required to give a commitment to lift minimum 40,000 MT

of Pig Iron during the MOU period i.e. Nov’12 to Mar’13.

5. Mode of Delivery : By Rail/ by Road/ both by Rail and Road on Ex-

plant Visakhapatnam basis/Ex-stockyard basis.

6. Application for the EOI:

Interested applicants may submit the information as per the format provided

at Annexure-I in a sealed envelope addressed to Sr.BM-HQSALES, RINL, VSP,

Marketing Department, D-Block, Project Office Complex, Visakhapatnam –

530031.

7. Security deposit:

Customers who are desirous of entering into MOU are required to furnish

security deposit of Rs. 250/-PMT. In case of failure of lifting minimum 2

rake loads or equivalent of 7400 MTs every month and also minimum 40000 MTs by 31.3.2013, SD submitted by the MOU customers shall be

forfeited.

8. Last date for submission of EOI: 17.11.2012

9. Request for Status Update on Evaluation Process:

RINL, VSP shall not accept or respond to Applicant’s requests for information

on the status and progress of the EOI evaluation process. Additional

information regarding the EOI process may be posted on VSP’s website

www.vizagsteel.com from time to time, solely at the discretion of RINL, VSP.

10. Ownership of EOI Documents and Information therein:

All the Expression of Interest documents shall become the property of RINL,

VSP upon submission. Where the Applicant believes that information

provided in response to this EOI is, or should be kept confidential; or

disclosure of this information would unreasonably affect the Applicant’s

business affairs, notice is to be given at the time of delivery of the

information or documents by clearly marking such information ‘confidential’.

In so far as is practicable, RINL, VSP will give effect to the Applicant’s stated

wishes, and requests for access to such information will be determined under

the RTI Act.

11. No Contractual Obligation:

RINL, VSP is not bound contractually or in any other way to any Applicant to

this Expression of Interest. RINL, VSP is not liable for any costs of

compensation in relation to the consideration of this Expression of Interest or

any Expression of Interest by the Applicant’s to this Expression of Interest

whether or not RINL, VSP terminates, varies, or suspends the Expression of

Interest process or takes any other action permitted under this Expression of

Interest, including consideration of concepts proposed in future

developments.

12. Disclaimer:

The issue of this document does not in any way commit or otherwise obliges

RINL, VSP to proceed with all or any part of the tender process.

The EOI Request is not the subject of any process or any contractual

obligations between RINL, VSP and the Applicants.

RINL, VSP may, at its absolute discretion, elect to abandon any part or whole

of the process without given prior notice to the Applicants. RINL, VSP

reserves the right to consider or reject any proposal at any point of time

without assigning any reasons whatsoever.

Sr. Branch Manager-PS HQSALES

Marketing Department

RINL-VSP PH: 0891-2706945

M:+919949017621

E-MAIL: vizag.bso@vizagsteel.com

Annexure-1

Expression of Interest for purchase of Pig Iron LSB Grade from RINL, VSP through MoU

DATE:

1. Name of the Company:_______________________________________

2. Address :________________________________________________

________________________________________

___________________________________________

Telephone No:_____________ _________Fax:___________ ________

Mobile No._____________________________

3. Year of Establishment of Business:________________________

4. Major business activities:_______________________________

_______________________________________________ _________

_______ ______________ ____________________ __________

__________________________________________________

5. Contact person: ___________________________________

Contact No. ___________________________________

Fax No. ___________________________________

E mail ID ___________________________________

6. Quantity required :

Minimum Required MOU Qty(T) (Month wise)

Nov’12 Dec’12 Jan’13 Feb’13 Mar’13 Total

7. Additional information if any:

(Signature)

Name of the Official with Seal___________________

Designation_________________________________

Annexure-2

Memorandum of Understanding (MoU)

This Memorandum of Understanding (MoU) is entered into on this ____ day

of the month______ and year ____ between RINL and _________________

(Name of the customer) with a view to know the possible market

requirement and decide production plan to enable RINL to supply Pig Iron from time to time.

1. Objective:

The objective of the Memorandum of Understanding (MoU) is to know the

possible market requirement and decide production plan to enable RINL to

supply Pig Iron from time to time.

2. General Terms and Conditions of MoU:

It is agreed by and between the parties hereto as follows:

That it is clearly understood between RINL and _______________ that this MOU is

not an enforceable contract and future contract(s) will be entered between the

parties to the MOU at the Branch level for supply of Pig Iron through ex-plant

delivery, as per availability.

2.1 This MoU is valid up to 31st March 2013 and shall cover the following

quantities of material:

Product Minimum Required Quantity(T)

Pig Iron

(Steel making grades)

2.2 Single MOUs can be signed with companies / firms having units at different locations operating under the same name and style.

2.3 Single MOUs can also be signed with each legal entity/Group

Companies.

2.4 Normally all sales will be made against 100% advance payment by

way of DD/PO/BC/RTGS/NEFT. However, RINL, solely at its

discretion, may extend credit facility /cheque payment facility from

time to time based on Company’s need and the creditworthiness of the customers.

2.5 The prices prevailing on the date of delivery of material is

applicable unless otherwise specifically agreed. Any incentive scheme applicable for sale of Pig Iron during MOU period shall also

be applicable to MOU customers.

2.6 Signing of MOU will depend upon the financial capacity & overall

suitability etc. of the customer.

3. Security deposit:

Customers who are desirous of entering into MOU are required to

furnish security deposit of Rs. 250/-PMT. In case of failure of lifting minimum 2 rake loads or equivalent of 7400 MTs every month and

also minimum 40000 MTs by 31.3.2013, SD submitted by the MOU

customers shall be forfeited.

4. Mode of Delivery: By Rail/ by Road/ both by Rail and Road on Ex-plant

Visakhapatnam basis/ Ex-stockyard basis.

5. Other terms and Conditions of MoU

(a) The Pig Iron would be made available on ex- plant basis/Ex-

stockyard basis.

(b) Any variation in statutory duties and levies viz. sales tax, excise, octroi etc. as well as freight shall be payable by the customer.

(c) Customers would be required to make their own arrangements to

lift the Pig Iron and transfer them to their location. In case of Rail

deliveries, Railways are requested on behalf of the customers to

provide wagons for loading materials.

(d) Upon entering into the MoU with the buyers, RINL shall have no

liability whatsoever, on account of short supply etc. as the overall

supply depends upon availability of Pig Iron from RINL from time to

time.

Name and Designation of Name and Designation of

RINL Officer Authorized signatory of Customer

RINL VIGILANCE � TOLL FREE NO.1800 425 8878