Special Terms and Conditions of Sale of Manganese Ore for OMDC Limited 1. Eligibility conditions for participating in on line auctions. Type of item Manganese Ore (Lumps and Fines) Who can participate Open to all except those having leased holding / ownership of any Manganese ore mines. Bidders must satisfy themselves that they are eligible to participate in any e-auction before putting their bids. If it is detected that any ineligible party has bided in the auction then the EMD / SD, as applicable will be forfeited. 2. The bid value shall be the basic price of the material exclusive of all applicable levies namely royalty, sales taxes, duties etc. in Rs/MT. 3. All intending bidders need to submit EMD at the rate as shown against individual item above for the quantity they wish to bid for. EMD shall be paid in the form of DD/PO on any nationalized bank in favour of MSTC Limited EMD Iron Ore payable at Kolkata and should reach MSTC office at 225 F AJC Bose Road, 2 nd Floor, Kolkata 700020 latest by the date and time as mentioned below. 4. Last date of submission of Pre Bid EMD : upto 16.00 Hrs. on the last working day of MSTC preceding the day of eauction. 5. All the successful bidders shall be required to submit SD directly to OMDC within 7 days from the date of issuance of Sale Offer. 6. It is the responsibility of the parties willing to participate in the particular Online Auction to go through the requirements and submit all documents as per conditions mentioned in this auction document. Hence the parties are advised to carefully go through the requirements of this auction document and submit all relevant information. Any deviation to the requirements of this auction document (lack of information etc) will be construed as Conditional and measures as decided by OMDC will be applicable. The decision of OMDC in this regard will be final & binding on the bidder. 7. Before actual participation, the bidders may obtain necessary help from MSTC Limited so as to enable them to participate in the online forward auction process without any difficulty. 8. Final bids given by the bidders in the online forward auction should be kept valid for 10 (ten) working days from the date of conduct of online forward auction. 9. If for any reasons beyond the control of OMDC all the materials offered through the online Page No1
forward auction or part thereof cannot be delivered by OMDC, the liability of OMDC will be limited only to refund of proportionate amount paid by the customer as applicable for the quantity not delivered and EMD for the subject lot. 10. The sale of materials shall be governed by Online forward auction notice, Special terms and conditions and General Terms and Conditions of sale from OMDC for sale through online forward auction. However, Special terms & conditions will over ride any similar clause laid out in General Terms and Conditions. 11. Placing a bid on the service provider s platform and being allocated by the system does not entitle the bidder on any rights on the material. OMDC reserves the right to cancel or reject any or all bids without assigning any reason whatsoever and the decision of OMDC in this regard shall be final and binding and not liable to be questioned in any court or before any authority. OMDC reserves the right to withdraw from the sale after advertising, Auction or after issue of sale offer of any quantity of the material without assigning any reasons thereof to the bidder and customer. OMDC will not be responsible for any damages/loss what so ever to the bidder and customer on account of such withdrawal. 12. The e-auction will be conducted through the site http://mstcecommerce.com. Auction document containing terms and conditions of the auction maybe obtained/downloaded from any of the following websites:www.birdgroup.gov.in, and http://mstcecommerce.com. 13. Sales Tax: In case of domestic buyers outside the state of Orissa, concessional sales tax will be charged @ 3% against C-Form. In all the cases the buyer shall keep 10% of material value with seller towards security for Sales Tax till the Sales tax assessment is over. If the buyer prefers to take refund of the amount retained with seller towards sales tax security deposit they shall have to furnish irrevocable Bank Guarantee for an amount equal to Sales tax Security deposit plus ten (10) percent, after completion of the relevant financial year. For the domestic buyer within the state the applicable sales tax (VAT) shall be levied. If there is any changes in the rate of sales tax the same shall be at the cost of the buyers. 14. QUANTITY: Quantity as indicated against each item is intended to be sold in lots of size as mentioned in the auction catalogue. A bidder may bid upto a maximum number of lots as indicted against each item. 15. CONTRACT PERIOD: The Contract shall remain valid from upto the period as Page No2
mentioned against each item in the auction catalogue. OMDC may at its own discretion extend the contract period for a further period of one month. However, during the extended contract period, the buyer will have to lift the materials at new H1 rates discovered in next auction by OMDC or at the prevailing rates of this contract, whichever is higher. The Bidders would have to deposit the difference in payments, if applicable, for the unlifted quantity within 5 working days of extended contract period offer. 16. RATE: Best rate is to be quoted online on internet site http://www.mstcecommerce.com per MT basis. The rate quoted should be exclusive of Royalty, Sales Tax, and other applicable levies. Applicable taxes and duties during the pendency of the contract including Royalty, sales tax, etc will be charged extra. Any increase/decrease in taxes, Royalty, etc or imposition of any new duties & taxes by Statutory Authorities would be on the account of buyers and payable by the buyers. Necessary arrangement for lifting and transportation will be at the cost of the buyer. 17. This Rate should be valid for 10 (ten) working days from the date of online auction. Once the rate is accepted by OMDC the price shall remain firm during the period of contract. OMDC will be under no obligation to communicate to the bidders in case the rate obtained on the service providers system is not acceptable. 18 BIDDING: The price bidding would consist of a single stage. In this Stage of Online Auction, the bidders have to bid for the PMT price and the number of units they want to book at that price with a maximum limit of Units for which bidders had provided Pre Bid EMD. Methodology for this stage online bidding is mentioned here under. The above is illustrated below for unit wise bidding. Assume that the total quantity available is 580 Units and bidders bid for certain number of units at a certain price as illustrated in the following. Bidder Bid Time (Hr: Min) Bid Quantity (no. of Units) Bid Price (Rs/Mt.) Allocated (no. of units) B 9.40 100 9500 100 F 9.39 200 9250 200 D 9.36 150 9250 150 A 9.32 100 9250 100 E 9.34 100 9250 30 C 9.30 300 9000 00 Explanation for the Allocation of Quantity Page No3
A. Bidder B is the highest bidder @ Rs.9500/MT, hence the system allocates his bided number of units i.e., 100 units. B. There are 4 bidders @ Rs.9250/MT. 1. Since bidder F s bid was for 200 units (Highest at Rs.9250/MT) the system allocates his bid quantity in full. 2. Bidder D s bid was for 150 units and since the quantity was still available at Rs.9250/MT, the software allocates bidder D 150 units. 3. Since bidder A placed his bid earlier than bidder E i.e. 9.32 Hrs hence the software gives first preference to Bidder A and allocates him the available quantity first. 4. After this allocation, since only 30 units are available the same is allocated to Bidder E. Since, all the quantity is exhausted at higher bid price than Rs.9000/MT; therefore no units are allocated to Bidder C. If Bidder C wants to win any units then he/she has to place bid in terms of higher price. So in summary, allocation is carried out by the e-sale software on following basis: 1. First preference is given to highest bid price 2. If two or more parties bid the same price then preference for allocation is given to party that placed the bid for a higher quantity. 3. In case two or more parties bid the same price and quantity, then preference is given to the party that placed the bid earlier. 19. Bid Increment during e-auction Sl No. Description of items Normal bid increment (Rs PMT) 1 Iron Ore Fines 10 20 2 Iron Ore CLO / Lumps 20 40 3 Manganese Ore Lumps and Fines 50 100 4 Sponge Iron Lumps and Fines 100 200 Bid increment during extension period (Rs PMT) 20. The price and quantity bided online should remain valid for a period of 10 (ten) working days from the date of online auction for acceptance by OMDC. Any modification / variation made thereto by the bidders during the above period of 10(ten) working days shall be construed as withdrawal from the OFA and in that event, OMDC shall reserve the right to cancel the bid and forfeit the Pre Bid security deposit without any further reference to the bidder. OMDC will notify to all successful bidders (SB) whose bid has been accepted, by issuing Sale offer in prescribed format Page No4
21 TERMS OF PAYMENT: Security Deposit (SD): The EMD of successful bidders, corresponding to the lots allotted, will get automatically converted into Security Deposit. The SD will be released on the following terms: a) After lifting the allocated quantity / lot by the successful bidder (SB) within the specified time. b)the minimum lifted quantity should be as specified in the catalogue. c) SD will be released after one month from the date of completion of the contract. The SD will be forfeited: a) SD will be forfeited on lot basis. Each lot will be treated as an independent contract and will be bound by the terms & conditions specified in the catalogue. b) For each individual lot, the successful bidder has to lift minimum quantity against each of the concerned lots as specified in the catalogue. In case they are unable to lift the desired quantity (the lot quantity as indicated in the catalogue) than the amount of SD for the incomplete lots will stand forfeited. 22. Payment for lifting of material: The successful bidders shall be required to deposit non-interest bearing advance payment covering full value of 100% of the material within 15 working days from date of issuance of sale offer. All payments towards material value, taxes, levies etc are to be made in the form of DD/PO in favour of The Orissa Minerals Development Co. Ltd drawn on a Scheduled/nationalised Bank and payable at Kolkata and are to be deposited with OMDC Kolkata. 23. Failure to deposit payments: Failure to deposit any or all of the above payments within the stipulated period will result in termination of contract without any notice to the successful bidder (SB) and forfeiture of Pre bid EMD / SD as the case may be. 24. DELIVERY: Tentative schedule Up to Contract period subject to availability of materials. Page No5
The materials committed quantity has to be lifted through Road Transport at the cost of buyer. For lifting the materials by Road, the buyer shall be responsible for obtaining necessary lifting permission from the respective site offices of OMDC. OMDC shall not be responsible for non issuance or delay in absence of lifting permission by the Office. The contract shall be valid for the contract period, both in terms of quantity and price. In case the buyer fails to lift the full quantity within the contract period may be, the shortfall quantity shall be forfeited w.e.f. closing hours of the contract period. After meeting the committed quantity of H1 party, OMDC reserves the right to sell the balance quantity amongst other tendered parties at the H1 rate. No complain will be entertained after lifting of material. Percentage of manganese is approximate. In case buyers are desired to inspect the material, he may do so before bidding. 25 VARIATIONS IN RATE (Bonus/Penalty) On Mn. Content: For Bonus/Penalty for higher/lower Mn. Content shall be calculated on the basis of single prorata for every % of Mn. content. 26. SAMPLING & ANALYSIS: Sampling will be conducted at our loading point by any reputed Public Analyst appointed by the seller and their analysis shall be final for payment and binding on both the parties. The cost of sampling and analysis shall be borne by the seller. 27. WEIGHMENT: For Road Dispatch: The Weighment will be made at the OMDC Weighbridge which will final. Such Weighment should be supervised and signed by the buyer s representative / transporter and seller s representative and same shall be binding on both the parties. Necessary arrangement for lifting and transportation shall be made by the buyer and their own cost. The parties opting for road dispatch must comply with the terms and conditions laid down by the respective offices of OMDC in connection with obtaining sale / lifting permission. If the lifting by the party gets affected due to non-compliance of the terms laid down by the OMDC office it will be considered as failure on the part of the party. 28. LIFTING &TRANSPORTATION : The buyer shall make necessary arrangement for lifting and transportation of materials on Ex-Plot / Stock basis at their own cost. 29. DELIVERY SCHEDULE: Successful bidders have to lift the total offered quantity within the contract period, 30. Termination Clause If the SB fails to arrange payment as per provision of clause 6 (Terms of Payment) above, OMDC will terminate the contract without any notice to SB, forfeit the Pre Bid Earnest money deposit / Page No6
Security deposit. 31. ABANDONED GOODS: The SBs must effect complete removal of the goods from the site within the date specified in the delivery order/s issued by OMDC. In case goods are not removed in full within the specified date, delivery order/s for the left over quantity will be treated as cancelled. The goods so left over will be treated as abandoned goods at the risk and cost of the SB. OMDC will have full right on such abandoned goods and will be entitled to release or dispose off the same in any manner it deems fit without any reference to the SB The SB will have no claim on goods treated as abandoned goods. The SB shall further be held liable for all commission and other charges and losses suffered by OMDC, which would be recovered from the security deposit or any other sum due to the SB. 32. ARBITRATION: Any dispute or difference under or arising out of or to in respect of the Agreement/ Accepted OFA may be referred to the sole arbitration of a person appointed by The Chairman cum Managing Director, The Orissa Minerals Development Co. Ltd., FD 350, Salt Lake City, Sector III, Kolkata 700 106 and his decision in the matter will be final and bidding on the Buyer and the company. The arbitration will be carried out as per Arbitration Act, 1996 and Rules made there-under as amended from time to time. 33. AWARDING AUTHORITY: Decision of OMDC Management shall be final and binding. OMDC reserves the right to accept/reject any bid without assigning any reason whatsoever. OMDC also reserves the right to split the order as it deems fit. 34. JURISDICTION: All kinds of Legal proceedings against The Orissa Minerals Development Co. Ltd. In any matter arising out of the purchase shall be under the jurisdiction of appropriate Court of Kolkata. 35. Interested parties may visit Mines to inspect the materials by prior arrangement with the respective Mine offices of OMDC with prior appointment on any working day. 36. Successful bidders whose bid has been approved by OMDC, should intimate the name & address of their local representative who should be present at the work site and coordinate with the executing Deptt. to carry out the job properly. All-important communication with successful bidder shall be through letters and / or notices put up in Notice Boards at respective mines offices and it will be obligation of successful bidder not to overlook such Notices. Any plea of ignorance of such Notices / letters put up in the Notice Board at Thakurani mines office shall not be accepted. 37. OMDC accepts no liability towards any claim, compensation / damage that may arise out of non-fulfillment of contracts between the successful bidder and any third party. OMDC will give no cognizance to such 3 rd party with whom it has no privity of the contract. 38. A contract shall be deemed to have been concluded between successful bidder & OMDC upon acceptance of the bid by OMDC in writing and the terms & conditions herein shall be binding on both the parties. Page No7
39. In the event of any internal requirement of materials including those from Steel Plants under SAIL and Government, OMDC shall reserve the right to curtail quantity A/C Successful Bidder or cancel the contract. 40. In the event the successful bidders whose bid has been approved by OMDC, desires that the challans are to be issued stipulating consignee and destination subject to the provision of the relevant Sales Tax Act, the same may be considered provided the successful bidders makes a written request to that effect and indemnify OMDC against non-delivery of materials to the nominated consignee / destination for which the successful bidder/s shall be responsible for all cost and consequences. 41. The bidders shall adhere to the Mines Act, Rules, Mines Regulations and Order issued under them. 42. Preference will be given to Government and Public Sector Units as per Government guidelines. 43. It shall be the responsibility of the persons submitting the applications to ensure that the documents have been submitted in the formats and as per the terms and conditions prescribed in the OMDC/MSTC website and no change is made therein before submission of their documents in the event of any doubt regarding the terms and conditions / formats, the person concerned may seek clarifications from the authorized officer of OMDC/MSTC. In case any tampering/unauthorized alteration is noticed in the documents submitted, from the documents available on the OMDC/MSTC website, the said documents shall be summarily rejected and OMDC/MSTC shall have no liability whatsoever on the matter. However, deviation if any, proposed by the applicant maybe separately indicated be for acceptance or otherwise of OMDC. Such proposed deviation will not be treated as tampering for the purpose of application of this clause. xxxxxxxxxx Page No8