Tamil Nadu Salt Corporation Limited (A Govt. of Tamil Nadu Enterprise) SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT TAMILNADU, INDIA. International Bidding Process TENDER NO 30/PD/2015 DATE OF OPENING 16.11.2015 AT 3.30 PM
Disclaimer The information contained in this Request for Proposal ( RFP ) document or subsequently provided to Bidders, whether verbally or in documentary form by or on behalf of the Tamilnadu Salt Corporation Limited (TNSC) or any of their employees or advisors (collectively referred to as TNSC Representatives ), is provided to the Bidders on the terms and conditions set out in this RFP document and any other terms and conditions subject to which such information is provided. This RFP document is not an agreement and is not an offer or invitation by the TNSC Representatives to any other party. The purpose of this RFP document is to provide interested parties with information to assist the formulation of their Proposal. This RFP document does not purport to contain all the information each Bidder may require. Certain Bidders may have a better knowledge of the proposed project than others. Each Bidder should conduct its own due diligence, investigations and analysis and should check the accuracy, reliability and completeness of the information in this RFP document and obtain independent advice from appropriate sources. The TNSC Representatives make no representation or warranty and shall incur no liability under any law, statute, rules or regulations as to the accuracy, reliability or completeness of the RFP document and concerned with any matter deemed to form part of the RFP Document, the award of the Project, the information and any other information supplied by or on behalf of TNSC or otherwise arising in anyway from the selection process. The prospective Bidder will be responsible for all obligations to its staff, their payments, complying with the labor laws, minimum wages act and any other act relevant for the working of the bidder s staff. Under no circumstances, TNSC will be responsible for any non-compliance with statutory requirements of the bidder s staff. TNSC may in their absolute discretion, but without being under any obligation to do so, update, amend or supplement the information in this RFP document from time-to-time, after intimating the same to the Bidders. TNSC Representatives reserve the right to accept or reject any or all proposals without giving any reasons. The bidding process shall be governed by the laws of India and courts at the state of Tamil Nadu will have jurisdiction over the matter concerning and arising out of RFP document. SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 1
Contents VOLUME I BIDDING PROCESS DESCRIPTION VOLUME II PROJECT INFORMATION MEMORANDUM SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 2
Index of Contents Section VOLUME I BIDDING PROCESS DESCRIPTION Page 1. Introduction 5 2. Brief Description of Bidding Process 6-7 3. Instruction to Bidders 8-18 4. Evaluation Criteria and Methodology 19-25 5. Contents of Proposal 25-26 6. Submission Formats 27-48 VOLUME II PROJECT INFORMATION MEMORANDUM 1. Project Summary 50 2. Land availability and location 51 3 Scope of the project 52 3. Land procurement 52 4. Indicative Project cost estimate 53-54 5 Location Map 55-56 SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 3
VOLUME I BIDDING PROCESS DESCRIPTION SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 4
Section 1 Introduction 1.1 Background 1.1.1 Tamilnadu Salt Corporation Ltd (hereinafter referred to as TNSC ), with its head quarters at Chennai, India, is a public sector enterprise of the Government of Tamil Nadu, involved in the manufacture of Industrial Grade salt and Edible salt for past four decades. 1.1.2 With a view to achieve the objective of the Government to promote Industrial activities in Tamil Nadu and to create a good market for the salt produced by the small scale salt manufacturers the State Government announced in the Legislative Assembly that a 36000 TPA Caustic Soda Plant will be established in Vedaranyam. 1.1.3 Now TNSC proposes to establish 36000 TPA Caustic Soda Plant in Vedaranyam, Nagapatinam District though a joint partner between TNSC and the private promoter to be selected through the International Bidding process. 1.1.4 TNSC, is in the process to select a private promoter to establish 36000 TPA Caustic Soda Plant in Vedaranyam, Nagapatinam District by International Bidding process, has issued this Request For Proposal (RFP) Document to all the interested parties (hereinafter referred to as Bidders ). Bidders are now required to submit detailed proposals as per provisions of this RFP document 1.1.5 The Proposals would be evaluated on the basis of the evaluation criteria and methodology set out in this RFP document in order to identify the successful Bidder for the Project 1.1.6 The Successful Bidder would then have to enter into a Memorandum of Understanding ( MoU) with TNSC towards executing the project 1.1.7 Broadly this project involves setting up of caustic soda plant with capacity to produce 36000 TPA with all required internal infrastructure facilities. SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 5
Section 2 Brief Description of Bidding Process 2.1.1 TNSC intends to follow single cover-single stage process for selection of the Successful Bidder. Bidders would need to submit the following set of documents in sealed envelopes as part of their Proposal: i. Relevant documents /proposal of the Bidder covering Net worth, Turn Over, cash flow, relevant experience, financing capability and business plan to implement the project. Formats for submission of the relevant data are given elsewhere in this RFP. 2.1.2 The evaluation of the proposals would be carried out as per the following steps. a. The first step would involve a test of responsiveness. Those proposals found with non-responsiveness would not be evaluated. b. In the evaluation stage, the information of the Bidders relating to their experience and financial capability would be evaluated. Bidders meeting the minimum Net worth and project experience criteria, as set out in this RFP Document, would only be pre-qualified for further evaluation c. The proposals of the pre-qualified bidders would be evaluated based on the evaluation criteria and methodology set out in this RFP document. SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 6
2.2 Tentative Bidding Schedule TNSC would endeavour to adhere to the following bidding schedule: S.No. Event Description Date ( tentative) 1. Advertisement Date of issue 10.10.2015 2 Issue of RFP document 15.10.2015 to 13.11.2015 3 Last date of receiving queries 15.11.2015 4 Last date of receiving queries, in case the queries to be answered in pre bid meeting 2.11.2015 6 Pre-bid meeting at TNSC at 3 PM 5.11.2015 7 Bid submission at TNSC Due Date, at 15 00 hrs. 8 Opening of Bids at 15 15 hrs 16.11.2015 at 3.30PM 16.11.2015 by 3.00PM 9 Complete evaluation of bids by TNSC Last week of Nov 2015 10 Letter of Award ( LoA) to preferred bidder Jan 2016, subject to the approval of the Government TNSC will endeavour to adhere to the date indicated above. However it reserves the right to effect changes to the above dates, if need arises. Such changes would be intimated to the bidders or uploaded in TNSC website (www.tnsalt.com). SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 7
Section 3 Instruction to Bidders A. General 3.1 Eligible Bidders 3.1.1 The entities eligible for participating in this bidding process shall be any one of the following two categories: a. Category 1: A single Business Entity; or b. Category 2: A consortium of Business Entities (hereinafter referred to as Consortium ). The term Bidder would hereinafter apply to both the abovementioned categories. 3.1.2 For the purpose of this RFP, Business Entity shall mean any of the following: a. A company which is registered in India under the provisions of the Companies Act, 1956 or under equivalent law outside India; (Copy of registration certificate to be submitted ); or b. A body corporate formed by means of a specific government statute in India (Copy of such statute to be submitted along with Supporting Documents) 3.1.3 Any entity which has been barred by TNSC, Government of Tamil Nadu (GoTN), any other State Government in India (SG) or Government of India (GoI), or any of the agencies of GoTN / SG / GoI and the bar subsists as on the Proposal Due Date, would not be eligible to submit a Proposal, either individually or as a member of a Consortium. The Bidder shall execute an undertaking to this effect as per the format enclosed in Appendix D-2. SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 8
3.2 Requirements for a Consortium 3.2.1 Proposals submitted by a Consortium should comply with the following additional requirements: a. The number of members in a Consortium would be limited to four members including the Lead Member and the consortium shall meet the other conditions stipulated in the RFP b. The proposal should contain the information on the members required and also include a description of the roles and responsibilities of the members; c. All the members shall be Business Entities; d. A Bidder who has applied for a Project in its individual capacity or as part of a Consortium cannot participate as a member of any other Consortium applying for the project; e. The members of the Consortium shall enter into a Memorandum of Understanding (MoU) as set out in the format given as Appendix B-3 and submit the same with the Proposal. The MoU should, inter alia: i. Convey the intent of the members to enter into a long term legally binding agreement with joint and several liabilities among the consortium members. ii. Clearly outline the proposed roles and responsibilities of each member of the Consortium; and iii. Convey its intent to form a special purpose vehicle company (SPV) for execution of the project. The minimum shareholding pattern of the Consortium Members shall be 10% of the SPV to be formed. Such SPV would enter into joint venture Agreement with TNSC, if required by TNSC, subsequently carryout all the responsibilities of the Successful Bidder in terms of such agreement/s, in case the Project is awarded to the Consortium. iv. Include a statement to the effect that the members of the Consortium shall be liable jointly and severally for the implementation of the Project in accordance with the terms of the Agreement. SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 9
3.2.2 The MoU entered into, between the members of the Consortium should be specific to the Project and should contain the above requirements, failing which the Proposal may be considered non-responsive. 3.2.3 The Lead Member shall hold a minimum equity stake equal to 26% of the shareholding of the SPV atleast for three years from the date of execution of Joint Venture Agreement with TNSC. The Other Member shall hold a minimum equity stake equal to 10% of the shareholding of the SPV. The financial strength of the consortium members having less than 10% of the equity share in the Joint Venture will not be considered for evaluation. 3.3 Number of Proposals and respondents 3.3.1 Each Bidder shall submit only one Proposal, in response to this RFP. Any Bidder/member of Consortium, who submits or participates in more than one proposal, shall be disqualified and shall also cause disqualification of all the proposals in which such Bidder/member of Consortium has participated. 3.3.2 The RFP document is not transferable and Proposals shall be submitted only by Bidders to whom the RFP document has been issued by TNSC. 3.4 Proposal Preparation Cost 3.4.1 The Bidder shall be responsible and shall pay for all of the costs associated with the preparation of its proposal and its participation in the bidding process. TNSC will not be responsible or in any way be liable for such costs, regardless of the conduct or outcome of the bidding process. SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 10
3.5 Project Inspections and Visit to the Sites 3.5.1 It is desirable that each Bidder submits its proposal after visiting the site in Vedaranyam, Nagapatinam District.. 3.5.2 It would be deemed that by submitting the proposal for RFP, the Bidder has: a. made a complete and careful examination and accepted the RFP Document in total; b. received all relevant information requested from TNSC, and c. made a complete and careful examination of the various aspects of the project including but not limited to: i. The project site and its features ii Existing external infrastructure facilities such as approach roads, etc iii. the conditions of utilities including power, water etc., in the vicinity of the project site; iv. Conditions affecting transportation, access, handling and storage of materials, travel and access by personnel; v. All other matters that might affect the Bidder s performance under the terms of this RFP document. 3.5.3 All the necessary studies, approval etc shall be the responsibility of the Bidder. 3.5.4 TNSC shall not be liable for any mistake or error on the part of the Bidder in respect of the above. SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 11
3.6 Right to Accept or Reject any of the Proposals 3.6.1 Notwithstanding anything contained in this RFP, TNSC reserves the right to accept or reject any proposal or to annul the bidding process or reject all proposals, at any time without any liability or any obligation for such rejection or annulment, without assigning any reasons. 3.6.2 TNSC reserves the right to reject any proposal if; a. at any time, a material misrepresentation is made or discovered, or b. the Bidder does not respond promptly and diligently to requests for supplemental information required for the evaluation of the proposal. 3.6.3 Rejection of the proposal by TNSC as aforesaid would lead to the disqualification of the Bidder if such disqualification / rejection occurs after the bids have been opened and the best bidder gets disqualified / rejected, then TNSC reserves the right to: a. either invite the next best Bidder OR b. Take any such measure as may be deemed fit in the sole discretion of TNSC, including annulment of the bidding process. B. Documents 3.7 Contents of RFP The RFP Document comprises the contents as listed below, and would additionally include any Addendum issued. Volume I Volume II Description of Bidding Process Project Information Memorandum SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 12
3.8 Amendment of RFP 3.8.1 At any time prior to the Proposal Due Date, TNSC may, for any reason, whether as its own initiative or in response to clarifications requested by a Bidder, modify the RFP document by the issuance of Addenda. 3.8.2 In order to provide the Bidders a reasonable time to examine the Addendum, or for any other reason, TNSC may, as its own discretion extend the proposal Due Date. 3.8.3 Any Addendum thus issued will be sent in writing to all the Bidders to whom the RFP document has been issued. 3.9 Pre-bid Meeting 3.9.1 To clarify and discuss issues with respect to the project and the RFP, TNSC may hold Pre-bid meeting(s) as per the Bidding Schedule set out in Clause 2.2 of this RFP. 3.9.2 Prior to the Pre-bid meeting(s), the Bidders are required to submit a list of queries and proposed deviations, if any. Bidders must formulate their queries and forward the same to TNSC as per the Bidding Schedule set out earlier in Clause 2.2 of this Volume of the RFP Document. TNSC may, in its sole discretion or based on inputs provided by Bidders that it considers acceptable, amend the RFP. 3.9.3 The proposal to be submitted by the Bidders would have to be unconditional and unqualified and the Bidders would be deemed to have accepted the terms and conditions of the RFP with all its contents including the Project Scope 3.9.4 TNSC will endeavor to hold the Pre-bid meeting as per Bidding Schedule. 3.9.5 Attendance of the Bidders at the Pre-bid meeting is not mandatory. 3.9.6 All correspondence / enquiries should be submitted to the following in writing by fax/registered post / courier: Managing Director, Tamilnadu Salt Corporation Limited, LLA Building 4 th Floor, 735, Anna salai, Chennai 600002 Phone- +91-44-28418344; Fax: +91-44-28525846 Email: mmktg@tnsalt.com SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 13
3.9.7 No interpretation, revision, or other communication from TNSC regarding this solicitation is valid unless it is in writing and is signed by the authorized representative of TNSC. TNSC may choose to send to all Bidders, written copies of TNSC s responses, including a description of the enquiry, but without identifying its sources, to all the Bidders. C. Preparation and Submission of Proposal 3.10 Language and Currency 3.10.1 The proposal and all related correspondence and documents should be written in the English language. 3.10.2 The currency for the purpose of the proposal shall be the Indian Rupee (INR). For conversions of US Dollars to Rupees, the rate of conversion shall be RBI reference rate as on the date of advertisement issued for this RFP document. In case of any other currency, the same shall first be converted to US Dollars as on the date of advertisement and the amount so arrived in US Dollars shall be converted into Rupees at the aforesaid rate. The conversion rate of such currencies shall be the average of buying and selling rates prevailing in Mumbai on the relevant date 3.11 Earnest Money Deposit ( EMD) 3.11.1 The bidders along with the submission of the technical proposal shall furnish the Earnest Money Deposit( EMD) for an amount of INR 25,000 (Rupees twenty five thousand only) in the form of DD in favour of TNSC as per the format in Appendix E-2. 3.11.2 Any proposal not accompanied by EMD shall be rejected as non responsive. 3.11.3 The EMD of the successful bidder will be retained as retention money which will be released after the signing of the MoU with TNSC for the development of this project. 3.11.4 The EMD of the unsuccessful bidders will be returned after completion of the selection process or on completion of 180 days from the proposal due date which ever is earlier 3.11.5 The EMD shall be forfeited if any bidder withdraws their bid during the period of bid validity or if the successful bidder fails to sign the MoU with TNSC. SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 14
3.12 Cost of RFP document and Processing fee 3.12.1 The RFP document can be obtained from TNSC free of cost or can be downloaded form the website of TNSC www.tnsalt.com 3.12.2 The interested bidder should submit the detailed proposal in response to the RFP along with the non refundable processing fee of Rs 5000 (Rs. five thousand Only) by way of Demand Draft drawn in favour of Tamilnadu Salt Corporation in any scheduled Bank payable in Chennai 3.13 Validity of Proposal and Extension of Validity of Proposal 3.13.1 Proposal shall remain valid for a period not less than six (6) months from the Proposal Due Date ( Proposal Validity Period ) and TNSC may solicit the Bidder s consent for extension of the period of validity, if required. TNSC reserves the right to reject any proposal, which does not meet this requirement. 3.13.2 In exceptional circumstances, prior to expiry of the original Proposal Validity Period, TNSC may request Bidders to extend the Proposal Validity Period for a specified additional period. 3.14 Format and Signing of Proposal 3.14.1 The Bidder would provide all the information as per this RFP Document. TNSC reserves the right to evaluate only those proposals that are received in the required format and is complete in all respects. 3.14.2 The Bidder shall submit the proposal in duplicate in single cover consisting of the details mentioned in this RFP 3.14.3 The Bidder shall submit one original and one copy of the entire proposal by indicating Original and Duplicate clearly. In the event of any discrepancy between the original and the copies, the original shall prevail. 3.14.4 The Proposal shall be typed or written in indelible ink. The pages and volumes of each part of the Proposal shall be clearly numbered and the Bidder shall initial each page. The person signing the proposal shall initial all the alterations, omissions, additions, or any other amendments made to the proposal. SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 15
3.14.5 The Proposal shall contain all the information required herein and references of previous submissions shall not be considered. 3.15 Sealing and Marking of Proposals 3.15.1 The Bidder shall seal the proposal in separate cover. 3.15.2 The envelope shall clearly bear the following identification: Proposal for setting up of 36000TPA Caustic Soda Plant in Vedaranyam, Nagapatinam District, Tamil Nadu 3.15.3 The envelopes shall be addressed and submitted to: Managing Director, Tamilnadu Salt Corporation Limited, LLA Building 4 th Floor, 735, Anna salai, Chennai 600002 Phone- +91-44-28418344; Fax: +91-44-28525846 Email: mmktg@tnsalt.com 3.15.4 All contents of the proposal should be clearly numbered, indexed and arranged in a sequence and shall be bound firmly. 3.16 Proposal Due Date 3.16.1 Proposals should be submitted before 1500 hours IST on the Proposal Due Date mentioned in the Bidding Schedule, in the manner and form as detailed in this RFP. Proposals submitted by either facsimile transmission or telex will not be acceptable. 3.16.2 TNSC may, in exceptional circumstances, and for reasons to be recorded in writing, extend the Proposal Due Date, by issuing an Addendum in accordance with Clause, uniformly for all Bidders. 3.17 Modifications / Substitution/ Withdrawal of Proposals 3.17.1 The Bidder may modify, substitute, or withdraw its Proposal after submission, provided that written notice of the modification, substitution, or withdrawal is received by TNSC before the Proposal Due Date. No Proposal shall be modified, substituted, or withdrawn by the Bidder after the Proposal Due Date. SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 16
3.17.2 The modification, substitution, or withdrawal notice shall be prepared, sealed, marked, and delivered with the envelopes being additionally marked MODIFICATION, SUBSTITUTION or WITHDRAWAL, as appropriate. D. Evaluation of Proposal 3.18 Proposal Opening 3.18.1 TNSC would endeavour to open the Proposals Submissions immediately after the Proposal Due Date and in any case within four weeks from the Proposal Due Date for the purpose of evaluation. 3.18.2 Proposals for which an acceptable notice of withdrawal has been submitted in accordance with Clause 3.17 shall not be opened. 3.18.3 TNSC would subsequently examine and evaluate Proposals in accordance with the criteria set out in Section 4, Section 5 and Section 6 of this RFP Document. 3.19 Confidentiality Information relating to the examination, clarification, evaluation, and recommendation for the Bidders shall not be disclosed to any person not officially concerned with the process. TNSC will treat all information submitted as part of Proposal in confidence and would require all those who have access to such material to treat the same in confidence. TNSC will not divulge any such information unless it is ordered to do so by any authority pursuant to applicable law or order or a competent court or tribunal, which requires its disclosure. 3.20 Tests of responsiveness 3.20.1 Prior to evaluation of Proposals, TNSC will determine whether each Proposal is responsive to the requirements of the RFP. A Proposal shall be considered responsive if the Proposal: a. Is received/deemed to be received by the Proposal Due Date including any extension thereof pursuant to Clause 3.16.2; b. is signed, sealed and marked as stipulated in Clause 3.14 and Clause 3.15; c. is accompanied by the EMD in the form of DD as stipulated in Clause 3.11 SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 17
d. is accompanied by the Processing Fee in the form of Demand Draft Rs 5000 ( Rs. five thousand Only) drawn in favour of TNSC as stipulated in Clause 3.12 respectively. e. is accompanied by the Power of Attorney (the value of the Stamp shall not be less than INR 100 (Rupees hundred only) or duly attested by the Notary), the format for which is specified in Appendix B-1 and Appendix B-2; f. contains all the information as requested in this document; g. contains information in formats specified in this document; and h. Mentions the validity period as set out in Clause 3.13 3.20.2 TNSC reserves the right to reject any Proposal which is non-responsive 3.21 Clarifications To facilitate evaluation of Proposals, TNSC at its sole discretion, seek clarifications in writing from any Bidder regarding its Proposal.. 3.22 Proposal Evaluation: Technical Proposal 3.22.1 The Technical proposals of the Bidders would first be checked for responsiveness as set out in Clause 3.20 All Proposals found to be substantially responsive shall be evaluated as per the evaluation Criteria set out in Section 4. The bidder who has scored highest marks will be declared as the Preferred bidder 3.23 Declaration of Successful Bidder 3.23.1 TNSC may either choose to accept the Proposal of the Preferred Bidder or invite him for negotiations. 3.23.2 Upon acceptance of the Proposal of the Preferred Bidder with or without negotiations, TNSC shall declare the Preferred Bidder as the Successful Bidder. SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 18
3.24 Notifications TNSC will notify the Successful Bidder by a Letter of Award (LoA) that its Proposal has been accepted. Section 4 Evaluation Criteria and Methodology 4.1 The Selection Process is designed to select a financially strong and technically capable Private promoter to establish the Caustic Soda Plant in Vedaranyam, Nagapatinam District through a Special Purpose Vehicle (SPV) company. Pre-Qualification Criteria 4.2 The pre-qualification criteria set for submitting the technical proposal by the bidder are the following i) should have the Networth not less than Rs 500 cr as on 31.03.2015 ii) should have executed /completed development of one industry worth of Rs 200 cr or more and should have invested Rs 50 cr or more ( own investment in the form of equity/preference shares/debentures/own loan given by the bidding company) in the same or similar projects in the last 10 years In the case of single bidder, the networth of the bidding company and that of its parent ( promoter) company if any and that of its Affiliates / Associates / Group companies will be considered for Evaluation. (Net worth of those Promoter/Group Company evidenced in the consolidated balance sheet only will be considered for evaluation) In the case of bidding consortium, the aggregate of the net worth of the Lead Consortium Member and that of the each consortium member will be considered SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 19
4.3 The proposals of the bidders who have not met the pre qualification criteria will not be considered for evaluation 4.4 Evaluation of Technical Proposal The criteria to be adopted for assessing the financial and technical capabilities of the Bidders and scores for the respective parameters are Sl. No. Parameter Max Score i) Networth 20 ii) Average Turn Over in the last three years 10 ii) Average Cash flow in the last two years 15 iii) Project Financing Capabilities 20 iv) Relevant Experience 25 v) Proposal of the Business plan indicating extent of area in acres of development, Project cost, project time line, resource mobilization, etc 10 4.5 The bidder who has scored highest marks among others will be chosen as the preferred bidder. Assigning of Score & Grading Scale Design 4.6 Following methodology will be adopted for assigning scores for respective parameters under the evaluation criteria prescribed for Financial / Technical strengths (i) Highest score will be awarded to the bidder, for a parameter, who posses the highest value of the particular parameter among all other bidders (eg) In respect of Net worth, highest score of 20 marks will be assigned to the bidder who has highest net wroth among other bidders SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 20
ii) The marks will be assigned proportionally to all other bidders on linear scale basis in comparison to the highest score for the particular parameter. Illustration Assuming four bidders have submitted their proposal with following strengths Bidder Networth Rs. cr Turnover Rs. cr Cash flow Rs. cr Project financing capability Relevant experience No.of yrs Cost of the project Rs. cr Rs. cr A 600 200 180 1200 7 1500 B 1200 450 400 1000 4 500 C 2100 1300 450 2000 3 1200 D 750 300 200 800 5 600 Net worth 4.7.1 For the limited purpose of evaluation, Networth means (Paid up capital + Free Reserves and Surplus) Less (Revaluation reserves and Accumulated Losses Plus Deferred Expenditure not written off including Misc. Expenses not written of) as per the latest Audited Balance Sheets. An Illustration on assigning scores for Networth is as below. Company Networth (in Rs. Crores) Score A 600 600 / 2100* 20 = 5.71 B 1200 1200 / 2100*20 = 11.42 C 2100 2100 / 2100*20 = 20 D 750 750 / 2100*20 = 7.14 SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 21
Turn Over 4.7.2 For the limited purpose of evaluation, Annual Turn Over means Total revenue by way of sales of products and or services generated in one year) as per the latest Audited Balance Sheets An Illustration on assigning scores for Turn Over is as below. Company Turn Over (in Rs. Crores) Score A 200 200 / 1300* 10 = 1.53 B 450 450 / 1300*10 = 3.46 C 1300 1300 / 1300*10 = 10 D 300 300 / 1300*10 = 2.30 Cash flow 4.7.3 For the limited purpose of evaluation, Cash flow means Closing cash and cash equivalents as shown in the Cash flow Statement given in annual reports in accordance with Indian accounting Standard 3. An Illustration on assigning scores for cash flow is as below. Company Cash flow (in Rs. Crores) Score A 180 180 / 450* 15 = 6 B 400 400 / 450* 15 = 13.33 C 450 450 / 450* 15 = 15 D 200 200 / 450* 15 = 6.66 Project Financing Capability 4.7.4 For the limited purpose of evaluation, the Project financing capabilities means the amount (in Rs. crores) of Finance (equal to the project cost) invested or mobilized or financed for any Industrial / infrastructure projects already implemented and/or under execution / implementation during the past ten years period. For the purpose of evaluation, the projects which has already achieved financial closure/ completely completed within last ten years will be considered under project financing capabilities parameter. SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 22
An Illustration on assigning scores for Project Financing capability is as below. Company Project Financing Score Capability (in Rs. Crores) A 1200 1200 / 2000* 20 = 12 B 1000 1000 / 2000* 20 = 10 C 2000 2000 / 2000* 20 = 20 D 800 800 / 2000* 20 = 8 Relevant Experience 4..7.5. For the limited purpose of evaluation, Relevant Experience means the number of years in running similar industry or major manufacturing industry. The projects worth of Rs.250 crores and more alone will be considered under this parameter For the purpose of evaluation, infrastructure project means similar chemical industries or any major manufacturing industry. An Illustration on assigning scores for Relevant experience is as below. Company Relevant experience (No. of years ) Score A 7 7 / 7 * 25 = 25 B 4 4 / 7 * 25 = 14.28 C 3 3 / 7 * 25 = 10.71 D 5 5 / 7 * 25 = 17.85 Project & Business Plan 4.7.6 Proposal of the Business plan should indicate the extent of area in acres of development, estimated Project cost for creating internal infrastructure, project implementation time line, resource mobilization, investments expected to be attracted in the Park and employment to be generated over the period of ten years The marks will be assigned by the evaluation committee based on the quality and merits of the project proposal on qualitative assessment SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 23
4.7.8 In the case of bidding consortium, the sum of the net worth of the Lead Member and that of the each consortium member will be considered. In the case of single bidder, the networth of the bidding company and that of its parent ( promoter) company if any and that of its Affiliates / Associates / Group companies will be considered for Evaluation. (Net worth of those Promoter/Group Company evidenced in the consolidated balance sheet only will be considered for evaluation) 4.7.9 The approach adopted, in the case of bidding consortium, for the parameter Networth as outlined in clause 4.2 will be applicable for other parameter viz., turn over, cash flow and Project Financing Capabilities 4.7.10 In the case of Relevant Experience, the experience of any one of the consortium member or parent/affiliate/group company in the case of single bidder will only be considered Total score Illustration 4.7.11 The hypothetical illustration for the total marks scored by the bidders are as below Bidder Networth Turnover Cash flow Project Relevant Business financing experience Plan Total Rs. cr Rs. cr Rs. cr Rs. cr No.of yrs A 5.71 1.53 6 12 25 9 59.24 B 11.42 3.46 13.33 10 14.28 5 57.49 C 20 10 15 20 10.71 8 83.71 D 7.14 2.3 6.66 8 17.85 6 47.95 Among the four bidders, the bidder C has scored highest marks and hence will be chosen as the preferred bidder SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 24
Evaluation Committee 4.8 TNSC shall constitute an Evaluation Committee for the purpose of evaluating the technical proposals. The interpretation and decision of the Evaluation Committee shall be final and binding on the Bidders. 4.9 The successful bidder shall be the Preferred Bidder and TNSC shall proceed with finalizing the agreement with such Bidder 4.10 In the event, if two or more Bidders have been emerged as successful bidders, TNSC may invite revised offer from such Bidders, or take any such measure as may be deemed fit in its sole discretion. Negotiations 4.11 TNSC would notify the Preferred Bidder in writing by letter, cable, telex or facsimile and invite him for negotiations. Negotiations will commence with discussion on the Project Proposal, land procurement plan, the proposed implementation plan and approach, time schedule, etc. 5. CONTENTS OF PROPOSAL Technical Proposal Submissions 5.1. General Submissions a. Letter of Proposal as per Appendix A b. Power of Attorney as per Appendix B-1, authorizing the signatory of the Proposal to commit the Bidder c. Power of Attorney for the Lead member of the Consortium as per Appendix B-2 d. Details of Bidder as per Appendix C e. Anti-Collusion Certificate as per Appendix D f. Letter of Undertaking from Bidder as per Appendix D-2 g. Certificate of Incorporation h. Processing Fee in the form of Demand Draft. i. EMD in the form of Demand Draft as per the Appendix- E-2 SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 25
5.2 Relevant Experience Submissions i) Statement of Experience in establishing Industry by the Bidder during the past ten years period. as per Appendix-J ii) Auditor s certificate for above as per Appendix M-5 5.3 Financial Capability Submissions a. Statements of Net worth, Turn Over, Cash flow, Project Financing capability and Business Plan as per the Appendices F,G,H,I,K b. Auditor s Certificate as the proof for the above statements as per the Appendices- M-1,M-2,M-3, M-4 c. Annual Report of last three years. SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 26
6. SUBMISSION FORMATS Format for letter of Proposal Appendix A: (On the Letter head of the Bidder) 1 Date: The Managing Director Tamil Nadu Salt Corporation Ltd LLA Building 4th Floor, 735, Anna Salai, Chennai 600 002 Tamil Nadu Subject: Reference: Proposal for setting up 36000TPA Caustic Soda Plant in Vedaranyam, Nagapatinam District Request for Proposal issued by TNSC Being duly authorized to represent and act on behalf of ------------------------------------------ (hereinafter referred to as the Bidder ), and having reviewed and fully understood all of the Proposal requirements and information provided, the undersigned hereby submits the Proposal for the project referred above. We are enclosing our Proposal in one original plus one copy, with the details as per the requirements of the RFP, for your evaluation. We confirm that our Proposal is valid for a period of six months from Proposal Due Date indicated in the RFP document. TNSC and its authorised representatives are hereby specifically authorised to conduct or to make any enquiry or investigations to verify the statements, document and information submitted with this application and / or in connection therewith and to seek clarification from our bankers, financial institutions and clients regarding the same. SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 27
The undersigned declares that the statements made and the information provided in this proposal is complete, true and correct in all respects. Yours faithfully, ---------------------------------------------------------- (Signature of the Authorised Signatory of Bidder) ------------------------------------------------------------ (Name and designation of the Authorised Signatory of Bidder) ------------------------------------------------------------- In case of a Consortium-On the letter head of the Lead Member. SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 28
Appendix B-1: Format for Power of Attorney for Signing of Proposal (On stamp paper of appropriate value, shall be not less than INR 100) Power of Attorney Know all men by these presents, we. (name and address of the registered office or Bidder or in case of consortium of Lead Member) do hereby constitute, appoint and authorise Mr. / Ms.... (name and residential address) who is presently employed with us and holding the position of as our or attorney, to do in our name and on our behalf, all such acts, deeds and things necessary in connection with or incidental to our bid for the project envisaging establishing Caustic Soda Plant in Vedaranyam, Nagapatinam District including signing and submission of all documents and providing information / responses to the TNSC, representing us in all matters before TNSC, and generally dealing with TNSC in all matters in connection with our bid for the said Project. We hereby agree to ratify all acts, deeds and things lawfully done by our said attorney pursuant to this Power of Attorney and that all acts, deeds and things done by our aforesaid attorney shall and shall always be deemed to have been done by us. Accepted. (Signature).. (Name, Title and Address of the Attorney) For....(Signature). (Name, Title and Address) SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 29
Appendix B-2: Format for Power of Attorney for Signing for Lead Member of Consortium (On a Stamp Paper of appropriate value, shall be not less than INR 100) Power of Attorney Whereas the Tamilnadu Salt Corporation Limited, Chennai, proposes to establish Caustic Soda Plant in Vedaranyam, Nagapatinam District ( the Project ), Whereas, the members of the Consortium are interested in bidding for the Project and implementing the Project in accordance with the terms and conditions of the Request for proposal (RFP) document, and other connected documents in respect of the Project, and Whereas, it is necessary under the RFP document for the members of the Consortium to designate one of them as the Lead Member, with all necessary power and authority to do for and on behalf of the Consortium, all acts, deeds and things as may be necessary in connection with the Consortium s bid for the Project. NOW THIS POWER OF ATTORNEY WITNESSETH THAT: We, M/s.. and M/s... (the respective names and address of the registered office) do hereby designate M/s...being one of the members of the Consortium, as the Lead Member of the Consortium, to do on behalf of the Consortium, all or any of the acts, deeds or things necessary or incidental to the Consortium s bid for the Project, including submission of Proposal, participating in conferences, responding to queries, submission of information/documents and generally to represent the Consortium in all its dealings with the TNSC in connection with the Project until culmination of the process of bidding. We hereby agree to ratify all acts, deeds and things lawfully done by Lead Member, our said attorney pursuant to this Power of Attorney and that all acts deeds and things done by our aforesaid attorney shall and shall be deemed to have been done by us/ Consortium. Dated this the day of.., 2011 (Signature) (Title, Name and Address of the Executants) (To be executed by all the members of the Consortium) SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 30
Appendix B-3 Format for Memorandum of Understanding (MoU) between Consortium Members (to be executed in non judicial stamp paper for a value not less than Rs 20 ) This Memorandum of Understanding (MoU) entered into this..day of 2010 at.. Among.. (hereinafter referred as.. ) and having registered office at.. India Party of the First Part And.. (hereinafter referred as..) and having registered office at.india Party of the Second Part And.. (hereinafter referred as..) and having registered office at.india Party of the Third Part And.. (hereinafter referred as..) and having registered office at.india Party of the Fourth Part And ----------- ------------ The parties are individually referred to as Party and collectively as Parties. WHEREAS Tamilnadu Salt Corporation Limited (TNSC) has invited proposals from bidders/ bidding consortium interested in Plan, Design, Finance, Procure, Construction, Development, Manufacture and Market Caustic soda and allied products in Vedaranyam, Nagapatinam District in Tamil Nadu State. WHEREAS the parties have had discussions for formation of a Consortium for bidding the said project and have reached an understanding on the following points with respect to the parties rights and obligations towards each other and their working relationship. SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 31
IT IS HEREBY AS MUTUAL UNDERSTANDING OF THE PARTIES AGREED AND DECLARED AS FOLLOWS: i) That the parties will form a Special Purpose Company (SPV) as a Joint Venture with TNSC for implementation of this project ii) That M/s who is the Lead Member of the Consortium commits to bring in a minimum equity not less than 26% of the aggregate share holding in the SPV and hold the same at all times during the construction period. iii) That M/s.M/s..and M/s.. who are not Lead Members of the consortium commit to bring in minimum equity stake individually not less than 10% of the aggregate shareholding in the SPV and hold the same at all times during construction period. iv) That the parties shall carryout all responsibilities that are to be specified in the Joint Venture Agreement to be signed between the selected bidder/consortium and TNSC after the selection process. v) That the parties herby confirm that in the event of selection the parties will execute Joint Venture Agreement with TNSC for implementation of the project. vi) That the parties shall be jointly and severally liable for the execution of the project in accordance with the terms of the Joint Venture Agreement. vii) That the parties affirm that they shall implement the project in good faith and shall take all necessary steps to see the project through expeditiously. viii) That this MoU shall be governed in accordance with the laws of India In witness where of the parties affirm that the information provided is accurate and true and have caused this MoU to be duly executed on the date and year above mentioned. ------------ ---------------- ------------- ----------- (party of the first part) (party of the second part) (party of the third part) (party of the fourth part) Witness 1) 2) SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 32
Appendix C: Details of Bidder (For each member of Consortium) 1. Name 2. Address of the office(s) 3. Date of incorporation and/or commencement of business 4. Brief description of the Company including details of its main lines of business. 5. Name, Designation, Address and Phone Numbers of Authorised Signatory of the Bidder: a. Name : b. Designation : c. Company : d. Address : e. Telephone Number : f. Fax Number : g. Mobile Number : h. E-Mail Address : 6. Details of individual(s) who will serve as the point of contact / communication for TNSC within the Company: a. Name : b. Designation : c. Company : d. Address : e. Telephone Number : f. Fax Number : g. Mobile Number : h. E-Mail Address : 7. In case of Consortium: Information above (1-4) should be provided for all the members of the Consortium and information regarding role of each member should be provided as per table below: Sl.No. Name of the Member Role (Lead Member or Other Member) SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 33
Appendix D-1: Format for Anti Collusion Certificate (On the Letterhead of the Bidder or All members of Consortium) Date: The Managing Director Tamil Nadu Salt Corporation Ltd LLA Building 4th Floor, 735, Anna Salai, Chennai 600 002 Tamil Nadu Subject:. Proposal for setting up Caustic Soda Plant in Vedaranyam, Nagapatinam District Reference: Request for Proposal issued by TNSC. We hereby certify and confirm that in the preparation and submission of our Proposal for establishing Caustic Soda Plant in Vedaranyam, Nagapatinam District, we have not acted in concert or in collusion with any other Bidder or other person(s) and also not done any act, deed or thing which is or could be regarded as anti-competitive. We further confirm that we have not offered nor will offer any illegal gratification in cash or kind to any person or agency in connection with the instant Proposal. Dated this.day of., 2011. (Name of the Bidder). (Signature of the Authorised Person) (Name and designation of the Authorised Person) SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 34
Appendix D-2: Format for Undertaking (On the Letterhead of the Bidder or All the members of Consortium) Date: The Managing Director Tamil Nadu Salt Corporation Ltd LLA Building 4th Floor, 735, Anna Salai, Chennai 600 002 Tamil Nadu Subject:. Proposal for setting up Caustic Soda Plant in Vedaranyam, Nagapatinam District. Reference: Request for Proposal issued by TNSC. We confirm that we are not barred by TNSC, Government of Tamil Nadu (GoTN), any other State Government in India (SG) or Government of India (GoI), or any of the agencies of GoTN/SG/GoI from participating in any projects (contracting or otherwise) as on the Proposal Due Date indicated in the RFP document issued by TNSC. Yours faithfully, (Signature of Authorised Signatory). (Name and designation of the Authorised Person) SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 35
Appendix E-1 Format for Undertaking for Business Entity (On the Letterhead of the Bidder or All the Consortium members, in case of Consortium) Date: To The Managing Director Tamil Nadu Salt Corporation Ltd LLA Building 4th Floor, 735, Anna Salai, Chennai 600 002 Tamil Nadu Subject:. Proposal for setting up of Caustic Soda Plant in Vedaranyam, Nagapatinam District Reference: Request for Proposal issued by TNSC. We confirm that we are registered under the following statutes: Type of Statute Indian Companies Act, 1956 Law equivalent to companies act in case of incorporation outside India Separate statute of Government of India Please tick as appropriate We are enclosing the certificate of incorporation / copy of statute or letter from statutory auditor that the company is registered as per details above (strike out whichever is not applicable), for your reference. Yours faithfully, (Signature).. (Name and designation 2 of signatory) Enclosed: Certificate of Registration... 2 TO be issued by the Chief Financial Officer/Company Secretary/Competent Office SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 36
FORMAT FOR EARNEST MONEY DEPOSIT APPENDIX E-2 ( in the letter head of the bidder/ lead member of the Consortium ) To The Managing Director Tamil Nadu Salt Corporation Ltd LLA Building 4th Floor, 735, Anna Salai, Chennai 600 002 Tamil Nadu Subject: Proposal for setting up of Caustic Soda Plant in Vedaranyam Nagapatinam District Earnest Money Deposit Reference: Request for Proposal issued by TNSC. We herewith enclose the Demand Draft for the value of Rs 25,000/. ( Rs. twenty five thousand only) bearing number. ******* dtd ****** drawn from ******* Bank towards Earnest Money Deposit ( EMD) for the selection of Joint Venture Partner for the establishment of Caustic Soda Plant in Vedaranyam, Nagapatinam District. 2. We understand that i) The EMD of the successful bidder will be retained as retention money which will be released after the signing of the MoU with TNSC for the development of this project. ii) The EMD of the unsuccessful bidders will be returned after completion of the selection process or on completion of 180 days from the proposal due date which ever is earlier iii) The EMD shall be forfeited if we withdraw our bid during the period of bid validity or if we fail to sign the MoU with TNSC, in the case of we become successful bidder iv) TNSC is not bound to accept any proposal received. Yours Sincerely by the hand of Mr.. (name of authorized signatory) SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 37
Appendix F: Format for submission of Net worth details (On the Letterhead of the Bidder or the Lead member of the Consortium, in case of Consortium) Date: The Managing Director Tamil Nadu Salt Corporation Ltd LLA Building 4th Floor, 735, Anna Salai, Chennai 600 002 Tamil Nadu Subject: Proposal for setting up of Caustic Soda Plant in Vedaranyam, Nagapatinam District Reference: Request for Proposal issued by TNSC We submit the details on the networth of our company/ consortium as below for your technical evaluation purpose Sl No Items Rs. in Crs 1 Net worth of the bidding company or the Lead Member of the bidding consortium in the case of consortium 2 Net worth of the consortium member -1 of the bidding consortium 3 Net worth of the consortium member -2 of the bidding consortium 4 Net worth of the consortium member -2 of the bidding consortium Total Yours faithfully, (Signature).. (Name and designation 2 of signatory) Enclosed: Auditor certificate in proof of Net worth as per the format in Appendix- M-1.. 2 TO be issued by the Chief Financial Officer/Company Secretary/Competent Office SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 38
Format for submission of Turn Over details Appendix G: (On the Letterhead of the Bidder or the Lead member of the Consortium, in case of Consortium) Date: The Managing Director Tamil Nadu Salt Corporation Ltd LLA Building 4th Floor, 735, Anna Salai, Chennai 600 002 Tamil Nadu Subject: Proposal for setting up of Caustic Soda Plant in Vedaranyam, Nagapatinam District Reference: Request for Proposal issued by TNSC We submit the details on the average turn over of our company/ consortium as below for your technical evaluation purpose Sl. Items No. 1 Average Turn over of the bidding company or the Lead Member of the bidding consortium in the case of consortium, in the last three years 2 Average Turn over of the consortium member -1 of the bidding consortium, in the last three years 3 Average Turn over of the consortium member -2 of the bidding consortium, in the last three years 4 Average Turn over of the consortium member -3 of the bidding consortium, in the last three years Rs. in Crore Yours faithfully, (Signature).. (Name and designation 2 of signatory) Enclosed: Auditor certificate in proof of Turn Over as per the format in Appendix- M-2.. 2 TO be issued by the Chief Financial Officer/Company Secretary/Competent Office SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 39
Format for submission of cash flow details Appendix H: (On the Letterhead of the Bidder or the Lead member of the Consortium, in case of Consortium) Date: The Managing Director Tamil Nadu Salt Corporation Ltd LLA Building 4th Floor, 735, Anna Salai, Chennai 600 002 Tamil Nadu Subject: Proposal for setting up of Caustic Soda Plant in Vedaranyam, Nagapatinam District Reference: Request for Proposal issued by TNSC We submit the details on the average cash flow of our company/ consortium as below for your technical evaluation purpose Sl. Items No. 1 Average cash flow of the bidding company or the Lead Member of the bidding consortium in the case of consortium, in the last two years 2 Average cash flow of the consortium member -1 of the bidding consortium in the last two years 3 Average cash flow of the consortium member -2 of the bidding consortium in the last two years 4 Average cash flow of the consortium member -3 of the bidding consortium in the last two years Rs. in Crore Yours faithfully, (Signature).. (Name and designation 2 of signatory) Enclosed: Auditor certificate in proof of Cash flow as per the format in Appendix- M-3.. 2 TO be issued by the Chief Financial Officer/Company Secretary/Competent Office SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 40
Format for submission of Project Financing Capabilities details Appendix I: (On the Letterhead of the Bidder or the Lead member of the Consortium, in case of Consortium) Date: The Managing Director Tamil Nadu Salt Corporation Ltd LLA Building 4th Floor, 735, Anna Salai, Chennai 600 002 Tamil Nadu Subject: Proposal for setting up of Caustic Soda Plant in Vedaranyam, Nagapatinam District Reference: Request for Proposal issued by TNSC We submit the details on the project financing capabilities of our company/ consortium as below for your technical evaluation purpose Sl. No. Details 1 List of projects for which finances invested or mobilized or financed by Bidding company or the Lead Member of the Consortium in the last 10 years 2 List of projects for which finances invested or mobilized or financed by the consortium member- 1 of the consortium in the last 10 years 3 List of projects for which finances invested or mobilized or financed by the consortium member- 2 of the consortium in the last 10 years List of projects for which finances invested or mobilized or financed by the consortium member-3 of the consortium in the last 10 years Total Project cost & Funding pattern (Rs. Cr.) Current Status Yours faithfully, (Signature).. (Name and designation 2 of signatory) Enclosed: Auditor certificate in proof of Project Financing capability as per the format- Appendix M-4 2 TO be issued by the Chief Financial Officer/Company Secretary/Competent Office SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 41
Format for submission of Relevant Experience details Appendix J: (On the Letterhead of the Bidder or the Lead member of the Consortium, in case of Consortium) Date: The Managing Director Tamil Nadu Salt Corporation Ltd LLA Building 4th Floor, 735, Anna Salai, Chennai 600 002 Tamil Nadu Subject: Proposal for setting up of Caustic Soda Plant in Vedaranyam, Nagapatinam District Reference: Request for Proposal issued by TNSC We submit the details on the relevant experience of our company/ consortium as below for your technical evaluation purpose Sl.No Details No of year operation Project Cost RS.Cr Current status Yours faithfully, (Signature).. (Name and designation 2 of signatory) Enclosed: Auditor certificate in proof of relevant experience as per the format-appendix M-5 2 TO be issued by the Chief Financial Officer/Company Secretary/Competent Office SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 42
Format for submission of Business Plan details Appendix K: (On the Letterhead of the Bidder or the Lead member of the Consortium, in case of Consortium) Date: The Managing Director Tamil Nadu Salt Corporation Ltd LLA Building 4th Floor, 735, Anna Salai, Chennai 600 002 Tamil Nadu Subject: Proposal for setting up of Caustic Soda Plant in Vedaranyam, Nagapatinam District Reference: Request for Proposal issued by TNSC We, the undersigned, submit the details on the business plan for the proposed project for setting up Caustic Soda Plant in Vedaranyam, Nagapatinam District for your technical evaluation purpose i) Total area (in acres ) planned to be developed ii) Land procurement plan iii) Estimated cost for creating internal infrastructure facilities, such as land development, internal roads, storm water drainage, internal water supply & power supply facilities, common ware housing if any, etc, iv) Project implementation schedule in no. of months v) Expected investment to be attracted in the park over a period of 10 years vi) Employment generation over a period of 10 years (the bidders may give additional information on their plan) Yours faithfully, ( Authorised Signatory ).. (Name and designation of signatory) SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 43
Appendix- M-1 Format for unqualified Auditor Certificate on Networth, This is to certify that M/s, having registered office at. Is having Networth of Rs.. as on---------- Date Place Signature Name & Seal SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 44
Format for unqualified Auditor Certificate on Turn Over Appendix- M-2 This is to certify that M/s, having registered office at. Has made the average Turnover of Rs.. in the last three years Date Place Signature Name & Seal SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 45
Format for unqualified Auditor Certificate on Cash Flow Appendix- M-3 This is to certify that M/s, having registered office at. Has generated average cash flow of Rs.. in the last two years Date Place Signature Name & Seal SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 46
Appendix- M- 4 Format for unqualified Auditor Certificate on Project financing capability This is to certify that M/s ------------------------ having registered office at has mobilised project finances upto Rs ---------------- in the last ten years for the following projects Sl No Name of the Projects with details 1 2 3 Finance Mobilized With details on Equity, debt, grant, etc ( Rs cr) Status of the project ( Note: the total project finances is the sum of the project cost of the projects for which the finances mobilized by the bidder) Date Place Signature Name & Seal SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 47
Appendix- M-5 Format for unqualified Auditor Certificate on Relevant experience This is to certify that M/s ------------------------ having registered office at has executed ----- number of infrastructure projects each worth of more than Rs 200 cr. Sl.No List of projects Project Cost Rs. cr 1 2 3 4 Current status Date Place Signature Name & Seal SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 48
VOLUME- II Project information Memorandum SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 49
Section -1- Project Summary 1.1. Tamilnadu is the second largest salt producing state in India and produces around 25 lakh tonnes of salt per annum. In Tamil Nadu the Vedaranyam is the second largest salt producing belt and it produces around 5to 6 lakh tonnes of salt annually. The salt is the major raw material for the chlor alkali Industries. 1..2 Hon ble Chief Minister of Tamilnadu announced in the floor of the assembly that a 36000 TPA Caustic soda plant will established by TNSC through Joint Venture model. The establishment of Caustic Soda plant in this location will help the local small scale salt manufacturers to dispose their produce at a reasonable rate for the caustic soda plant. 1.3 With the view to help achieving the objective of the Government to promote industrial activities in Tamil Nadu, TNSC proposes to establish a Caustic Soda Plant in Vedaranyam, Nagapatinam District through Joint Venture Partner between TNSC and the private promoter to be selected through the Competitive Bidding process. The main raw material for the project is Industrial Grade salt, power and water. Sufficient Industrial grade salt is being produced in Vedaranyam area. This plant with the proposed capacity will absorb around 50% of the salt produced by the small scale manufacturers in the area. The Special Purpose Vehicle (SPV) company to be formed for realizing this project will carry forward the responsibilities covering the following : i. Land acquisition, development and infrastructure construction ii. Setting up of caustic soda plant to use the salt produced in the Vedaranyam area iii. Operation and maintenance of the common facilities such as roads, water supply, CETP, testing facilities, warehousing facilities etc. SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 50
Section 2 Land availability and Location: 1.4 The site is located in Thennadar village of Vedaranyam Taluck. The location covered in the Survey No 48-1 and the site spread over 113 acres. The site is about 6 kms from Vai medu village and 3 km from Vedaranyam-Thiruthuraipoondi high way on the southern side. The site is located at a reasonable elevation and located adjacent to the salt works. 1.5 Power Supply The power required for the suggested capacity of 100 TPD Caustic Soda plant would be about 15000 KVA. This much power requirement can be made available only through a 110 KV power source. The site is close to 110 KV substation. It is only 6 kms from the 110 KV substation in Vai medu. Sufficient power available at Vai medu and can be obtained by laying separate line from the substation to the proposed site. 1.6 Water Supply The requirement of water for the proposed capacity of 100 TPD caustic soda plant would be about 700 m 3 per day. This water should be of reasonable quality having a P H of 6.5 to 7.5 and the total dissolved solids contents of less than 600ppm. The required water can be made available by digging bore wells. Initial survey indicates availability of reasonable quality of water. The location being tail end it is expected that permission to have bore wells for availing sufficient quantity of water can be obtained from the local authorities. 1.7 Disposal of effluent The disposal of the effluent would not be a problem. Liquid effluent can be let out into the sea through a Bittern channel which is available in this location. The solid effluent can be effectively used to build bunds in the nearby salt works. SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 51
Section -3 - Scope of the Project 2.1 The envisioned proposal is to establish a Caustic Soda Plant in Vedaranyam to make use of the main raw material Industrial Grade salt available in sufficient quantity locally. This will provide ready market for the small scale salt produces to market their produce. The scope of the project will include i) To prepare a detailed project report for establishing the project to produce 36000 TPA of Caustic Soda plant in Vedaranyam, Nagapatinam District. ii) Acquire and Development of about 120 acres of Land including site clearing, leveling, grading. zoning, street lighting, fencing, etc iii) Establishing Caustic soda plant as per the provisions of the factories act. iii) Providing storm water drainage, sewage/ effluent collection lines. iii) iv) Construction of Internal Roads Providing Water Supply arrangements. v) Laying 110 KV separate line to obtain power from the 110 KV sub station located in Vai medu about 6 kms from the project site. vi.) Construction of Effluent Treatment plant, Common Testing, Training facilities vii) Warehousing facilities ix ) The road connecting the Vedaranyam-Thiruthuraipoondi high way to the site has to be widened to the transportation. SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 52
Section- 4 - Land procurement 3.1 The successful bidder will be required to obtain the land from the Government. TNSC will facilitate the land procurement process. Section -5 - Indicative Cost estimate 4.1 The total project cost for setting up of a 100 TPD Caustic Soda is estimated to be about Rs. 110 Crores. The project cost excludes costs towards road widening, the cost of laying 110 KV Power Line upto the site and the expenses to be incurred by TNEB for getting permission for laying foundation of the support structures of transmission lines where ever it needs to be laid over privately held land. The indicated project cost covers the following: Civil & Structural. Primary Brine Unit. Secondary Brine Unit. Electrolyzer Unit consisting of Bipolar Electrolyzer, Technology & License Fee and delegation expenses for supervision of erection & commissioning. Cell Room Section Brine Dechlorination Unit Chlorine Handling Unit Chlorine Compressor & Liquefaction Unit Liquid Chlorine Storage Tanks Chlorine Tonner Filling Station Hydrogen Handling Unit Hydrochloric Acid Unit Chlorine Absorption & Hypo Production Unit 32% Caustic Handling Unit Caustic Evaporation Unit (from 32% to 48%) Instrumentation Electrical (including Rectifier Transformer Unit) SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 53
Utilities Pipes, Valves, Fittings & Supports Laboratory Hardware Fire Fighting & Safety Appliances Transportation costs for all items. Erection (including Mechanical Equipment, Piping, Instrumentation, Electrical and other Sundry items). Engineering Services including Basic & Detailed Engineering, Procurement Assistance, Project Management Services and Delegation towards supervision of erection & commissioning. Preliminary & Preoperative Expenses SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 54
Section -6 - Location Maps Arial ( Google) Map-1 indicating the Location of the project site SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 55
SELECTION OF JOINT VENTURE PARTNER FOR ESTABLISHING 36000 TPA CAUSTIC SODA PLANT IN NAGAPATINAM DISTRICT Page 56