TENDER DOCUMENTS FOR SUPPLY OF SULPHURIC ACID

TENDER NO.MAT/PUR/10461/11-12

CONTENTS

1.  Tender Notice

2.  Scope of Tender

3.  General Conditions ( 4 Pages)

4.  Techno commercial Bid – Annexure – I

5.  Price Bid – Annexure - II

HINDUSTAN ORGANIC CHEMICALS LTD

(A Government of India Enterprise)

AMBALAMUGAL, COCHIN – 682032

PH: 0484-2720911 FAX – 2720893

TENDER NOTICE FOR THE SUPPLY OF SULPHURIC ACID

TENDER NO: MAT/PUR/10461/11-12 Date:12.07.2011

Sealed tenders are invited from reputed manufacturers/ authorised dealers having sound financial capabality for the supply of the SULPHURIC ACID of detailed specifications as per tender documents under the two bid system (Techno commercial and Price bids)

SULPHURIC ACID PURITY (%W/W)MIN 98.00%

Tender documents can be downloaded from website : www.hoclkochi.com. Completed tenders to be submitted before 2 PM on 03.08.2011.

CGM(MATERIALS)

TENDER DOCUMENTS FOR SUPPLY OF SULPHURIC ACID

TENDER NO.MAT/PUIR/10461/11-12

SCOPE OF TENDER

The scope of work under this tender is the supply of Sulphuric Acid Purity(%W/W) Minimum 98%–540 MT on rate contract basis for a period of one year. Supply should be as per HOCL Schedule.

SPECIFICATION OF SULPHURIC ACID

Sulphuric Acid Purity(%W/W) Minimum 98%

Test certificate of material to be furnished alongwith each load.

GENERAL CONDITIONS OF TENDER MAT/PUR/10461/11-12 dated 12.07.2011 due on 03.08.2011

Page 1 of 4

1.ELIGIBILITY CRITERIA

1.1.Only manufacturers or their authorised dealers having sound financial capability and who can supply the Sulphuric Acid as per the specification enclosed should submit the offers.Vendors who have been blacklisted in the past by any PSU shall not submit the bids.

1.2.Vendors must have executed orders of minimum value of Rs 1.10 crores for similar items in the last 3 years.

1.3.Vendor should have executed at least one order of minimum value of Rs 27.50 lakhs for similar items in the last 3 years.

1.4.Vendor shall submit a solvency certificate of a scheduled bank worth minimum Rs 13.75 lakhs.

Documentary evidence for all above parameters is to be furnished by the bidder with the technical bid. Similar items means Acids and other industrial chemicals in bulk.

2.VALIDITY OF OFFER : Offer shall be valid for a minimum period of 60 days from the last date of submission stipulated for the tender. The tendered quantity is the requirement for one year and will have to be supplied as per the despatch schedule given by HOCL.

3.SUBMISSION OF BIDS : Bids shall be submitted under the two bid system as per the procedure given below

(a) The techno commercial bid must be enclosed in a sealed cover on which must be superscribed on the top left corner ' TECHNO-COMMERCIAL BID FOR SULPHURIC ACID : TENDER NO: MAT/PUR/10461/11-12' . The techno commercial bid must contain the details given in Annexure – I and also the documentary evidence for fulfilling the Eligibility criteria specified against clause no 1.EMD as stipulated in Clause 4 must be enclosed along with the techno commercial bid. Vendor shall also enclose with the techno commercial bid, a photostat copy of this general conditions duly signed and sealed on all pages as proof of accepting all the clauses.

(b) The price bid must be enclosed in a separate sealed cover on which must be superscribed on the top left corner ' PRICE BID FOR SULPHURIC ACID: TENDER NO: MAT/PUR/10461/11-12. The price bid must contain the details given in Annexure – II.

(c)Both the techno commercial and price bids must be enclosed in a third sealed cover on which must be superscribed on the top left corner,' TECHNOCOMMERCIAL & PRICE BIDS FOR SULPHURIC ACID : TENDER NO: MAT/PUR/10461/11-12.

(e) All pages of bid shall be signed and sealed by the vendor.

GENERAL CONDITIONS OF TENDER MAT/PUR/10461/11-12 dated 12.07.2011 due on 03.08.2011

Page 2 of 4

4.EARNEST MONEY DEPOSIT (EMD) : EMD of Rs 27,500/- shall be paid through demand draft favouring Hindustan Organic Chemicals Ltd payable at Ernakulam. EMD shall be enclosed with techno-commercial bid. In the absence of EMD with techno commercial bid, the offer is liable to be rejected. EMD of successful bidders will be retained by HOCL and will be forfieted in case of default by the vendor.

EMD of successful bidders will be returned after expiry of contract period. EMD of unsuccessful bidders will be returned within a reasonable period after finalization of the purchase. PSUS &vendors exempted from EMD by NSIC need not submit EMD, but they have to submit valid NSIC exemption certificate instead. Successful bidders who have not submitted EMD, will have to furnish Security Deposit of Rs 50000/- on receipt of the purchase order from HOCL.EMD of others will be adjusted against SD and they need to submit the balance amount on receipt of Purchase Order.

5.RIGHT TO REJECT A BID : HOCL reserves the right to reject any bid due to reasons such as (a) Vendor not following above bidding procedures (b) Vendor not being technically acceptable to HOCL (c) Not enclosing EMD with the techno commercial bid or EMD paid being lesser than the stipulated amount (d) Vendor not agreeing with the general conditions of the tender. (e) Not enclosing any particular documents asked for (f) Any other valid reason.

6.QUANTITY : The quantity of 540 MT is the tentative total quantity for supply during one year from the date of placement of purchase order. The actual quantity however may vary in the range+/-10% and no guarantee can be given for minimum quantity of monthly upliftment or total upliftment.

7.SPLITTING OF PURCHASE ORDERS : HOCL reserves the right to split the quantity of 540MT among two vendors in the ratio of 70:30 to ensure the continuity of supply. The splitting will be as follows. The lowest quoted vendor will be awarded 70% of the tender quantity and L2 will be awarded 30 % of quantity provided he matches the L1 rate. If L2 does not match the L1 rate, then L3 will be offered to match the L1 rate and so on. If no party matches the L1 rate ,the full quantity will be ordered on L1 vendor. If an approved vendor who is supplying to HOCL Kochi for the first time becomes L1, then the splitting ratio will be 50:30:20 between the L1,L2 &L3 vendors on matching the L1 rate. The performance of the new vendor will be closely monitored for the first two months with regards to Quality of material supplied and adherence to delivery schedule given by HOC. If the performance is not found satisfactory ,HOC may cancel the order and allot the quantity between the next 2 lowest vendors following 70:30 ratio.

GENERAL CONDITIONS OF TENDER MAT/PUR/10461/11-12 dated 12.07.2011 due on 03.08.2011

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8QUALITY : Sulphuric Acid offered must confirm to the specifications given in the scope of tender. Any bid received for acid other than of above specification shall be rejected.

9.PRICE : The price quoted shall be for delivery at our factory at Ambalamugal, Ernakulam District, Kerala state. The price shall be quoted in detail as per statement given in Annexure – II. The price quoted by the vendor shall normally remain firm during the period of contract. However, variation in price shall be allowed as mentioned in Clause 10 based on ICIS LOR ME Sulphur price variation.

10.Price variation Clause:

The price of Sulphuric acid shall be revised on monthly basis , based on revision in the average Sulphur prices as per ICIS LOR FOB Middle EAST SPOT weekly readings for the previous month. For example, the price basis for this tender will be the Average ICIS LOR FOB Middle-East readings for June 2011. A conversion norms of 0.35 MT Sulphur per MT of Sulphuric acid will be considered. HOC will be calculating the average of weekly readings received during the previous month and the revised basic price of sulphuric acid will be calculated as follows from the month of September 2011 onwards.

% age change in the Basic price = 0.35x %change in the
of Sulphuric acid for each month AverageICIS LOR FOB Middle-East
Spot Sulphur prices of previous month
compared to Avge of sulphur price
for June 2011 .

Note : Average (4 readings) of ICIS LOR FOB Middle EAST spot readings for June 11 = $ 197.50 /MT.

Incase of fall in price of sulphur, the price of sulphuric acid shall be reduced according to the same formula. Vendor shall agree to accept the revised price so calculated even if the revised price is lesser than the initially quoted price. No price escalation shall be given based on any other grounds except the above.

11.PAYMENT TERMS : Payment shall be released by HOCL within 30 days of receipt and acceptance of the material at HOCL site.

GENERAL CONDITIONS OF TENDER MAT/PUR/10461/11-12 dated 12.07.2011 due on 03.08.2011

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12.INSURANCE : HOCL shall arrange the transit insurance for the materials.. However, the vendor shall promptly inform HOCL regarding despatches for arranging insurance.The transporter engaged shouldhave necessary public liability insurance coverage.

13.SUPPLY SCHEDULE : In the event of placement of purchase order on a vendor, HOCL shall be intimating the supply schedule 1 to 2 days in advance and vendor shall be bound to supply the lye as per the schedule.

14.INSPECTION : Weights and measures recorded at HOCL weighbridge will be treated as final. Sample of each consignment will be analysed at our laboratory & products meeting our approved specification only will be accepted.Payments will be released only for the accepted quantity as per the HOCL weighbridge and Lab analysis.

15.RIGHT TO PROCURE FROM ALTERNATIVE SOURCE : In the event of non-supply by the vendor on whom purchase order is placed, HOCL reserves the right to procure caustic soda lye of same quality from an alternative source at the cost and risk of the Vendor.

16.LAST DATE OF SUBMISSION OF COMPLETED BIDS : Bids completed in all respects should be submitted to General Manager(P&A), Hindustan Organic Chemicals Ltd,Ambalamugal, Cochin, Kerala as per the procedures mentioned above in the proper format on or before 2 pm on 03.08-2011.

17.SIGNING AND SEALING ON ALL PAGES OF BIDS : The vendor shall sign and seal on all the pages of the bids submitted failing which bids are liable to be rejected.

18.OPENING OF BIDS : Techno commercial bids will be opened at 4pm on 03.08.2011 in presence of attending bidders. HOCL, after evaluation of the techno commercial bids, will subsequently inform all those technically acceptable vendors regarding the date and time of opening of the price bids. Price bids will be opened in the presence of attending bidders.

19. DISPUTES : In the event of a contract being executed, all cases of disputes between seller and buyer shall be referred to the sole arbitration of the Unit-in-charge, Hindustan Organic Chemicals Ltd, Ambalamugal or an officer nominated by him. The decision of the arbitration shall be final and binding.

19Purchase/price preference for SSI Units/PSUs will be as per latest Govt. of India guidelines.

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ANNEXURE I

TENDER NO: MAT/PUR/10461/11-012 dated 12-7-2011

(Please sign and seal on all pages)

TECHNO COMMERCIAL BID

Page 1 of 3

NAME & ADDRESS OF REGISTERED OFFICE /
OFICE PHONE NO:
OFFICE FAX NO
NAME & ADDRESS OF FACTORY
FACTORY PHONE NO:
FACTORY FAX NO:
INSTALLED CAPACITY:
CENTRAL EXCISE REGN NO:
(COPY OF CENTRAL EXCISE REGISTRATION CERTIFICATE TO BE ENCLOSED)
SALES TAX REGISTRATION NO:
(COPY OF SALES TAX REGISTRATION CERTIFICATE TO BE ENCLOSED)

ANNEXURE I

TENDER NO: MAT/PUR/10461/11-12 dated 12-7-2011

(Please sign and seal on all pages)

TECHNO COMMERCIAL BID

Page 2 of 3

SALES TURNOVER FOR THE LAST THREE YEARS
(CHARTERED ACCOUNTANT'S CERTIFICATE TO BE ENCLOSED) /
THE FOLLOWING INFORMATION OR DOCUMENTS OR EVIDENCE TO BE ENCLOSED FAILING WHICH OFFER IS LIABLE TO BE REJECTED.
WHETHER YOU CAN SUPPLY CAUSTIC SODA LYES AS PER SPECIFICATION IN THE TENDER
(Enclose DETAILED SPECIFICATION ) / YES/ NO
WHETHER DETAILED LIST OF MAJOR CUSTOMERS TO WHOM SUPPLIED FOR THE LAST THREE YEARS WITH QUANTITIES IS ENCLOSED WITH TECHNO COMMERCIAL BID (COPIES OF LARGEST THREE PURCHASE ORDERS TO BE ENCLOSED) / YES / NO
WHETHER BANK CERTIFICATE IN PROOF OF SOLVENCY IS ENCLOSED WITH TECHNO COMMERCIAL BID / YES / NO
WHETHER YOU ARE A MANUFACTURER OR AUTHORISED DISTRIBUTOR? ENCLOSE DOCUMENTORY EVIDENCE.

ANNEXURE I

TENDER NO: MAT/PUR/10461/11-12 dated 12-7-2011

(Please sign and seal on all pages)

TECHNO COMMERCIAL BID

Page 3 of 3

WHETHER EMD OF Rs 27500/- ENCLOSED
(PLEASE NOTE THAT EMD MUST BE SUBMITTED WITH TECHNO COMMERCIAL BID FAILING WHICH OFFER WILL BE REJECTED. / YES / NO
(IF YES, PLEASE FURNISH THE FOLLOWING
DDNO:
AMOUNT: Rs
WHETHER COPY OF GENERAL CONDITIONS TO THE TENDER, DULY SIGNED AND SEALED ON ALL PAGES IS ENCLOSED WITH TECHNO COMMERCIAL BID (PLEASE NOTE THAT THIS MUST BE SUBMITTED FAILING WHICH OFFER WILL BE REJECTED) / YES / NO
WHETHER YOU CAN SUPPLY A MINIMUM QUANTITY OF 50 MT H2SO4 PER MONTH TO HOCL / YES / NO

Certified that all the details furnished above and in attached documents are true to the best of my knowledge. I accept that in case of any information furnished is found to be false by HOCL, my offer will be rejected and EMD will be forfieted.

Certified that we have not been blacklisted by any Public Sector Undertakings.unit in the past. Validity of our offer is upto......