SAIL JVP - Slag Cement Plant
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Transcript of SAIL JVP - Slag Cement Plant
Information Memorandum
STEEL AUTHORITY OF INDIA LIMITED
Invitation for Expression of Interest for Joint Venture Participation
For
Slag Cement Plant at Kulti, West Bengal
May 2010
Issued on behalf of
Steel Authority of India Limited
By
Business Planning Department
Ispat Bhawan, Lodi Road, New Delhi, India
Tel: 91-11-24365701 Fax: 91-11-24367015
Joint Venture Participation : Slag Cement Plant –Kulti, West Bengal Information Memorandum
Page 2 of 21
Disclaimer ................................................................................................................................. 3
Section I ..................................................................................................................................... 4
1. Proposal ......................................................................................................................... 4
2. Steel Authority of India Limited ..................................................................................... 6
Section II: Investment Overview – Cement Sector ............................................................ 10
1. Industry Structure ......................................................................................................... 10
2. Demand drivers ............................................................................................................ 10
Section III: The Investment Opportunity ......................................................................... 12
1. Introduction .................................................................................................................. 12
2. Slag generation ............................................................................................................ 12
3. Limestone Availability .................................................................................................. 12
4. Land Availability .......................................................................................................... 12
Section IV: Participation in Joint Venture Process ......................................................... 13
1. Eligibility ...................................................................................................................... 13
2. Future Process ............................................................................................................. 14
3. Invitation of bids ........................................................................................................... 14
4. Due Date, Number of copies and Filing Requirements ............................................... 14
5. Disqualification ............................................................................................................ 15
6. Requests for clarification ............................................................................................. 15
7. Further information/ clarifications .............................................................................. 16
8. Modification/Cancellation ........................................................................................... 16
9. Governing Laws/Jurisdiction/Arbitration .................................................................... 16
Section V: Formats ............................................................................................................... 17
1. Expression of Interest ................................................................................................... 17
2. Litigation Impact Statement ......................................................................................... 18
3. Request for Qualification ............................................................................................. 19
4. Proposed Business Plan ............................................................................................... 20
Annexure ................................................................................................................................. 21
Joint Venture Participation : Slag Cement Plant –Kulti, West Bengal Information Memorandum
Page 3 of 21
Disclaimer
Steel Authority of India Limited (SAIL) intends to set up a Slag Cement Plant (SCP) at Kulti,
West Bengal using slag generated at its IISCO Steel Plant (ISP) at Burnpur, West Bengal. It is
proposed to set up the Slag Cement Plant as a Joint Venture (JV) between SAIL and a
Strategic Partner (SP). Structure of the proposed alliance and the manner of setting up of the
Slag Cement Plant shall be detailed in the Request for Proposal .
This Information Memorandum (IM) has been prepared on the basis of available information
in SAIL and other publicly available documents which SAIL believe to be reliable. The sole
objective of this IM is to solicit Expression of Interest (EoI) from Interested Parties for taking
part in the future process leading to selection of SP for joint venture participation in the
proposed Joint Venture Company (JVC).
While this document has been prepared in good faith, no representation or warranty, express
or implied, is or will be made, and no responsibility or liability will be accepted by SAIL or
any of their employees, advisors or agents as to or in relation to the accuracy or completeness
of this document and any liability thereof is hereby expressly disclaimed. Interested Parties
may carry out their own study/ analysis/ investigation as required before submitting the EoI.
For any additional information or clarification relating to the IM, please contact:
Mr Dinesh Likhi
General Manager (Business Planning)
Steel Authority of India Limited
Ispat Bhawan
Lodhi Road
New Delhi – 110 003
India
Tel.: +91-11- 2436 5701
Fax.:+91-22- 2436 7015
e-mail: [email protected]
This document does not constitute an offer or invitation, or solicitation of an offer, for
sale of/subscribe to equity shares or any securities nor does this document or anything
contained herein, shall form a basis of any contract or commitment whatsoever.
Joint Venture Participation : Slag Cement Plant –Kulti, West Bengal Information Memorandum
Page 4 of 21
Section I
11.. PPrrooppoossaall
As a part of its efforts for sustainable development of the environment and economic disposal
of blast furnace slag, SAIL plans to implement certain environmental management measures
at its various plants. The plan envisages setting up of cement plants for manufacture of slag
cement using slag generated at its Integrated Steel Plants and would enable SAIL to find a
long term solution for disposal of slag generated at these plants. The capacity of the proposed
cement plants shall be decided on case to case basis. Possibility of enhancement of capacity of
the cement plant exists in view of future expansion plans of SAIL.
To ensure regular disposal of slag of Bhilai Steel Plant, a Joint Venture company (JVC)
(Bhilai Jaypee Cement Limited) with equity contribution of SAIL at 26% of paid-up share
capital was formed in April, 2007 for setting up a cement plant of 2.2 million tonnes per
annum capacity with split location at Bhilai and Satna. SAIL has incorporated another Joint
Venture Company (Bokaro Jaypee Cement Ltd) to set up a 2.1 MT cement plant at Bokaro.
The project implementation is under progress with commencement of cement production
likely by July 2011. Further, in case of Rourkela Steel Plant, SAIL is in advance stage of
creating another Joint Venture Company.
Current proposal is for taking care of slag from IISCO Steel Plant, Burnpur, West Bengal.
SAIL currently intends to setup a cement plant in a Joint Venture (JV) with cement
manufacturers. The capacity of the proposed plant will be in the range of 2 Million ton per
annum. There is no provision of a limestone mine in the current proposal and the Strategic
Partner (SP) will have to source clinker from its existing operations or from the free market.
SAIL proposes to identify the most appropriate bidder, as the Strategic Partner (SP) in the
proposed JVC. The selection of the successful SP shall be made through a transparent bidding
process, details of which would be contained in the detailed Request For Proposal (RFP) to be
issued later.
An advertisement (as in Annexure) has been issued by SAIL in the print media informing the
details relating to eligibility, manner and place of submission of Expression of Interest (EoI).
Information relating to the proposal is available in Information Memorandum (IM) which
may be accessed at the website, www.sailtenders.co.in. Objective of this IM is to solicit EoI
from interested parties, who satisfy the eligibility criteria set out in this IM for setting up of
the Slag Cement Plant (SCP) at Kulti, West Bengal.
A brief outline of the Joint Venture (JV) formation process and the information that may be
provided by the interested parties while submitting their EoI, are also provided in this IM.
Joint Venture Participation : Slag Cement Plant –Kulti, West Bengal Information Memorandum
Page 5 of 21
Based on an evaluation of EoI received, interested parties found acceptable by SAIL, will be
shortlisted to participate in the subsequent bidding process. Interested parties shortlisted by
SAIL would be provided with the detailed RFP after signing of confidentiality agreement and
will be eligible to site-visits for due diligence.
SAIL reserves the right to withdraw from the JV formation process or to alter any of its terms
and /or the process at any stage without assigning any reason whatsoever.
Joint Venture Participation : Slag Cement Plant –Kulti, West Bengal Information Memorandum
Page 6 of 21
22.. SStteeeell AAuutthhoorriittyy ooff IInnddiiaa LLiimmiitteedd
SAIL, a Navratna Public Sector Undertaking (PSU) of Government of India (GoI), is a
leading steel making company in India. SAIL was incorporated in January 1973 as a holding
company for steel and associated input industries. From 1973 to 1978, several steel and alloy
manufacturing companies and iron ore mines were merged into and combined with SAIL’s
operations, while GoI transferred the ownership of certain consulting, construction, mining
and fire bricks operations from SAIL to other entities. At present, SAIL has five Integrated
Steel Plants and three Special Steel Plants and is a holding Company for one operating
subsidiary in related business.
During FY 2009-10, SAIL has achieved production of 12.63 Million tonnes of saleable steel
Production of hot metal and crude steel stood at 14.50 and 13.51 million tonnes.
Operations
SAIL is a fully integrated, one of the low-cost iron and steel producer engaged in
manufacturing, developing and marketing of iron and steel products of all major qualities and
grades. It produces wide range of both basic and specialty steels for engineering, construction,
power, railways, automotive and defense sector for domestic as well as international market.
SAIL makes semis and finished products as flats (such as hot and cold rolled coils and sheets,
plates, galvanized sheets, electrolytic tin plates, pipes etc.) and longs (such as rails,
structurals, bars and rods etc.) at its five Integrated Steel Plants and three Special Steel Plants.
The details of location and product profile of the plants is given below:
Joint Venture Participation : Slag Cement Plant –Kulti, West Bengal Information Memorandum
Page 7 of 21
Integrated Steel Plants
a) Bhilai Steel Plant (BSP)
(Chattisgarh) Long Products – Wire rods, Rails,
Merchant Products, Structurals
Flat Products – Heavy Plates
Pig Iron and Semis
b) Durgapur Steel Plant (DSP)
(West Bengal) Long Products – Structurals, Merchant
Products, Wheels and Axles
Flat Products – Skelp
Pig Iron and Semis
c) Rourkela Steel Plant (RSP)
(Orissa) Flat Products – Plates, Hot Rolled and
Cold Rolled Coils/Sheets, Pipes, Silicon
Steel sheets, Galvanized Sheets and
Electrolytic Tin Plates
d) Bokaro Steel Plant (BSL)
(Jharkhand) Flat Products – Hot Rolled coils, Plates
and Sheets, Cold Rolled Coils and Sheets
and Galvanized sheets
Pig Iron and Semis
e) IISCO Steel Plant (ISP)
(West Bengal) Long Products – Structural, Bars and
Rod
Pig Iron & Semis
Special Steel Plants
a) Alloy Steels Plant (ASP)
(West Bengal)
Special Grade Alloy Steels
b) Salem Steel Plant (SSP)
(Tamil Nadu)
Hot Rolled and Cold Rolled Stainless Steel
Coils and sheets, and hot rolled mild steel
Coils
c) Visvesvaraya Iron & Steel
Plant (VISL) (Karnataka)
Alloy and special steel and pig iron
SAIL markets and sells most of its products through the Central Marketing Organization
(CMO), with a wide network of branch sales offices, customer contact offices and warehouses
(including dealers network and consignment agency yards) located in major cities and towns
throughout India. International Trade Division of SAIL looks after export of steel products to
various countries worldwide. Raw Materials Division manages operations of captive mines
and quarries of SAIL. These mines/ quarries provide for most of iron ore requirement and
about 50% of flux requirement of SAIL. Further, about 65% of SAIL’s power requirement is
met through Joint Venture/ captive power plants located at its ISPs.
Board of Directors
SAIL is a professionally managed company with each of its ISPs headed by a Managing
Director who is also a member on the Board of SAIL. As on 31st March, 2010, SAIL has 4
functional directors, 2 non-official part-time Directors who are eminent professionals and 2
nominee directors of GoI on its Board, apart from full time Chairman. The day to day
Joint Venture Participation : Slag Cement Plant –Kulti, West Bengal Information Memorandum
Page 8 of 21
management of SAIL rests with the Chairman and full-time Directors. As on March 31, 2010
Board of Directors had 14 members, with Mr S.K.Roongta as its Chairman.
The management of SAIL by virtue of its Navratna status has been enjoying considerable
autonomy from GoI. It enters into a Memorandum of Understanding (MoU) with GoI at the
beginning of each financial year, outlining the key performance targets.
Share Holding Pattern
As on March 31, 2010 the authorised capital of SAIL is Rs.50 Billion and the paid-up capital
is Rs.41.3 Billion. The equity shares of SAIL are listed at the Bombay Stock Exchange and
the National Stock Exchange, while the GDRs are listed at London Stock Exchange.
The share holding pattern as on March 31, 2010 was as follows:
Category Number Of
Shareholders
% Of Equity
Government of India 1 85.82
Foreign Institutions 30 6.04
Banks 47 0.68
Mutual Funds 95 0.74
Foreign Institutional Investors 310 4.48
Global Depository Receipts 2 0.02
Companies (including Trusts
and Clearing Members)
3221 0.47
Individuals etc 292235 1.75
Total 295941 100.00
Installed Capacity
(Mtpa)
Products Integrated Steel
Plants
Special Steel Plamts
Main Steel Plants
Hot Metal 13.82 0.21
Crude Steel 12.83 0.35
Saleable Steel 11.07 0.45
Joint Venture Participation : Slag Cement Plant –Kulti, West Bengal Information Memorandum
Page 9 of 21
Financial Performance
The financial results of the company from 2002-03 to 2008-09 are as follows:
(Rs in Crore)
Year Turnover
(Gross)
Gross Margin
(EBIDTA)
Interest Depreciation Profit/ Loss (-)
before tax
(PBT)
Tax Net Profit/
Loss (-) after
tax (PAT)
2002-03 19207 2165 1334 1147 (-)316 (-)12 (-)304
2003-04 24178 4650 901 1123 2628 116 2512
2004-05 31805 11097 605 1127 9365 2548 6817
2005-06* 32280 7381 468 1207 5706 1693 4013
2006-07 39189 10966 332 1211 9423 3220 6202
2007-08 45555 12955 251 1235 11469 3932 7537
2008-09 48681 10942 253 1285 9404 3229 6175
* 2005-06 onward financial results of SAIL includes IISCO steel plant results
consequent to its merger with SAIL w.e.f. 1.4.2005
The latest financial results of SAIL are available at www.sail.co.in
Future Expansion Plans
In order to maintain its predominance in the domestic steel sector and to face global
competitiveness, SAIL has drawn up an Expansion Plan for its five integrated steel plants and
special steels plants. Besides capacity enhancement, the growth plan adequately addresses the
need of SAIL Plants towards eliminating technological obsolescence, energy saving,
enriching product mix, pollution control, developing mines and collieries to meet higher
requirement of key inputs, introduce customer centric processes and have matching
infrastructure facilities in the Plant to support higher production volumes.
Joint Venture Participation : Slag Cement Plant –Kulti, West Bengal Information Memorandum
Page 10 of 21
Section II: Investment Overview – Cement Sector
The contents of this section has been prepared based upon publicly available material and
is given for general information only.
11.. IInndduussttrryy SSttrruuccttuurree
The Indian cement industry, had an estimated turnover of more than 18,500 Million USD in
2008. It is ranked the second largest in the world with an installed capacity of around 232
MTPA in September 2009, spread over 140 large plants and more than 365 mini cement
plants. It has very high operating rates (around 88% in 2008-09) driven by tremendous
demand in housing and infrastructure. Most of the plants are located close to the limestone
reserves and the units are concentrated in clusters, with around 50% capacity in 7 clusters.
Seven states (Madhya Pradesh, Andhra Pradesh, Rajasthan, Gujarat, Karnataka, Tamil Nadu
and Maharashtra) accounts for around 75% of the capacity.
Key Characteristics of Indian Cement Industry
Seasonal in Nature: Demand is highest in January-March quarter and declines during the
monsoons due to a slowdown in construction activity and price variations are strongly
linked to the monsoons, summer and festive seasons.
Standardized Technology: The industry is characterized by mature and stable technology
with minor improvements taking place over the years
Cost Structure: Coal and power costs account for around 30-35% of the total cost of sales,
raw material costs are around 25-30 %, selling and distribution expenses account for 20-
25% of cost of sales% with the remaining being other costs. Companies accordingly strive
to maintain proximity to limestone quarries to rationalize costs. Industry, being capital
intensive, debt levels are usually high.
Limited import threat: Imports are limited due to high freight rates.
22.. DDeemmaanndd ddrriivveerrss
The demand for cement has grown at a Cumulative Average Growth Rate (CAGR) of 9.3 %
over the last 5 years driven primarily by a boom in the housing and real estate sectors. The
current per capita cement consumption in India is 135 kg against the world standard of 300
kg. Cement demand varies across regions in response to demand-supply imbalances, per
capita income and level of industrial development in each state. During the period April –
December 2009, the South accounted for about 37% of cement production followed by the
North and West each with 25% share, - and finally the East with 13 % share. Prices also vary
region wise due to dynamics endemic to a particular region such as demand-supply situation,
number of players, extent of consolidation and demand growth. According to Crisil Research,
the demand for Cement in the Indian industry is expected to grow at a CAGR of 7.8 % over
the next five years. A capacity of 90 million tons is expected to be added over the next five
years till 2014 to meet the increasing demand levels.
Joint Venture Participation : Slag Cement Plant –Kulti, West Bengal Information Memorandum
Page 11 of 21
The key demand drivers are
Infrastructure: Accounts for around 17% of total demand. Industry has been riding the
crest of the cycle owing to the thrust on infrastructure projects by the government and
private sector. Cement demand from infrastructure projects is expected to grow at a CAGR
of around 17 % over the next 5 years due to increased consumption of cement in road
projects, continuing investments in power sector and increasing spends on urban
infrastructure projects.
Upswing in the Capex cycle: The capital expenditure cycle is on upswing, with
investments across most commodity sectors.
Housing: Housing has remained upbeat due to favorable policies and witnessed significant
growth. The sector is the largest demand driver and contributes around 64 % of the total
cement demand.
Government Policies: Supportive governmental policies have led to higher private
participation in infrastructure projects and foreign direct investment making the industry
more competitive.
Commercial and industrial construction: Strong growth in commercial construction
consisting of retail, office space, hotels.
Joint Venture Participation : Slag Cement Plant –Kulti, West Bengal Information Memorandum
Page 12 of 21
Section III: The Investment Opportunity
11.. IInnttrroodduuccttiioonn
Slag is produced at the IISCO Steel Plant (ISP) at Burnpur, West Bengal and shall be made
available to the Joint Venture Company (JVC) for the purpose of the proposed Slag Cement
Plant at Kulti, West Bengal.
The modernization and Expansion Plan of ISP is under implementation and production build-
up at ISP after expansion is given below:
Item Installed Capacity (MTPA) After Expansion (MTPA)
Hot Metal 0.85 2.91
Crude steel 0.50 2.47
Saleable Steel 0.42 2.39
22.. SSllaagg ggeenneerraattiioonn
A natural byproduct of iron making by the Blast Furnace route is generation of slag. The slag
generated can be economically utilized in manufacturing blended cement. SAIL shall make
available 1 MTPA of slag to the JVC for the purpose of the proposed Slag Cement Plant post
modernization of the IISCO Steel Plant. The quality of the slag shall be available after the
modernization of ISP.
It may be noted that the Slag will be given on “as it where is and on no complaint basis”.
3. Limestone Availability
There is no provision of a mine in the current proposal and the SP will have to source clinker
from its existing operations or from the free market.
4. Land Availability
For setting-up the Slag Cement Plant, SAIL will facilitate land on lease/sub-lease to the JVC
at Kulti, West Bengal.
Joint Venture Participation : Slag Cement Plant –Kulti, West Bengal Information Memorandum
Page 13 of 21
Section IV: Participation in Joint Venture Process
11.. EElliiggiibbiilliittyy
EoI may be submitted by Corporate Bodies. Please note that consortium bidding shall not be
allowed for the purpose of bidding. The interested party should satisfy the following criteria
to be eligible for participating in the process. All financial criteria are based on audited
statements of accounts for the relevant Financial Year(s) (FY). FY ended March 31, 2010, is
henceforth referred to as “latest FY”.
a. Should have produced an aggregate quantity of not less than 2 MTPA of cement in each
of the last three Financial Years.
b. Should have had a turnover of not less than Rs 5000 million in each of the last three
Financial Years.
c. Should have Networth (paid up share capital and free reserves, excluding revaluation
reserves, less accumulated losses and miscellaneous expenses not written off, if any) of
not less than Rs.2000 million as at the end of the Latest FY.
Where the financial statement is expressed in a currency other than Indian Rupee, the eligible
amount as described above shall be computed by taking the equivalent US Dollars at the
exchange rates (as available on Reserve Bank of India website) prevailing on the date(s) of
such financial statement. In the event the dates of the financial statements are not co-terminus,
the last of audited statement shall be reckoned for the purpose.
The Interested Party not satisfying the above eligibility and qualification criteria are not
eligible to participate in the Joint Venture Participation process. However, SAIL reserves the
right to modify the eligibility criteria and accept / reject all or any EoIs at its sole discretion.
Joint Venture Participation : Slag Cement Plant –Kulti, West Bengal Information Memorandum
Page 14 of 21
22.. FFuuttuurree PPrroocceessss
Based on an evaluation of EoI received, interested parties will be shortlisted to participate in
the subsequent bidding process. Shortlisted parties would be provided with the RFP (Request
for Proposal) after signing of Confidentiality Agreement.
However, this IM along with its enclosures, constitute no form of commitment on the part of
SAIL, whether in respect of the JV formation process or otherwise. Furthermore, this
invitation confers neither any right nor expectation to any party to participate in the JV
formation process. SAIL reserves the right to reject any or all bids, if it considers necessary to
do so, and/or to withdraw from the JV formation process or any part of the process or to vary
any of its terms and/ or the process without assigning any reason whatsoever.
33.. IInnvviittaattiioonn ooff bbiiddss
Following the completion of the initial process, all shortlisted parties, before submission of
bids will be provided with an opportunity to
hold further discussions with the senior management of SAIL and
under take site visits to collect relevant information and carryout technical assessment
for setting up of cement plant
They will also be furnished with further information, if required. However, information will
be provided at the sole discretion of SAIL.
The terms relating to submission of bids will be set out in the RFP and other document(s) to
be prepared for the purpose.
44.. DDuuee DDaattee,, NNuummbbeerr ooff ccooppiieess aanndd FFiilliinngg RReeqquuiirreemmeennttss
The Interested party may submit, in duplicate, EoI as per format(s), duly signed by the
authorized signatory.
The EoI should reach no later than 1200 hours (Indian Standard Time) on 7th
June , 2010
at the following address:
Mr Dinesh Likhi,
General Manager (BP)
Steel Authority of India Limited
Ispat Bhawan
Lodhi Road
New Delhi – 110 003
India
Joint Venture Participation : Slag Cement Plant –Kulti, West Bengal Information Memorandum
Page 15 of 21
The EoI must be in English and each copy shall be bound in a separate volume. Submission
of the aforesaid documents by fax, e-mail or other electronic means will not be acceptable.
It is the responsibility of the interested party to ensure that its EoI is delivered at the above
address by the stated time and date. The covering envelope containing aforesaid documents
submitted should be clearly marked
“Private and Confidential – Cement Plant at Kulti, West Bengal : Expression of Interest
for JV Participation”
55.. DDiissqquuaalliiffiiccaattiioonn
SAIL shall not consider for the purpose of qualification an EoI, which has been found to be
incomplete in content and/or attachments and/or authentication etc.
Without prejudice to any other rights or remedies available to SAIL, an interested party may
be disqualified and its EoI dropped from further consideration for any of the reasons listed
below:
material misrepresentation by such interested party whether in the EoI along with RFP
or otherwise;
failure by such interested party to provide the information required to be provided in
the EoI along with RFP pursuant to relevant sections of this IM;
If information becomes known after the interested party has been qualified to receive the IM
and participate in the further process, which would have entitled SAIL to reject or disqualify
the relevant interested party, SAIL reserves the right to reject the interested party at the time,
or at any time after, such information becomes known to SAIL.
The decision of SAIL that above events have occurred would be final and binding on the
parties and SAIL do not owe any explanation to any party.
66.. RReeqquueessttss ffoorr ccllaarriiffiiccaattiioonn
If at any time during the evaluation process, SAIL requires any clarification on the EoI
submitted by the interested party in order to carry out the evaluation, it reserves the right to
request such information from any or all of the interested party(ies) and such party will be
obliged to respond to any reasonable request for such information and to supply the same
within such reasonable timeframe as SAIL may require.
Joint Venture Participation : Slag Cement Plant –Kulti, West Bengal Information Memorandum
Page 16 of 21
77.. FFuurrtthheerr iinnffoorrmmaattiioonn// ccllaarriiffiiccaattiioonnss
Any request for further information or clarification relating to the contents of this IM or the
JV formation process, may be submitted in writing to:
Mr Dinesh Likhi
General Manager (BP)
Steel Authority of India Limited
Ispat Bhawan
Lodhi Road
New Delhi – 110 003, India
SAIL reserves the right not to respond, to questions raised or provide clarifications sought, in
its sole discretion, if it considers that it would be inappropriate to do so. Nothing in this
section shall be taken or read as compelling or requiring SAIL to respond to any question or
to provide any clarification. No extension of any time and date referred to in this IM shall be
granted on the basis or grounds that SAIL has not responded to any question/provided any
clarification.
88.. MMooddiiffiiccaattiioonn//CCaanncceellllaattiioonn
SAIL will be at liberty to amend/modify/delete any of the above conditions and/ or the
process as may be deemed necessary in the light of the facts and circumstances of the
case.
SAIL reserves the sole right to refuse any or all bids without assigning any reasons
thereof.
SAIL reserves the right to proceed with/ cancel the bidding process irrespective of the
response to its invitation.
SAIL at its discretion may extend the last date for submission of EoI.
Interested parties are advised to keep themselves informed of any such modification/
cancellation that may be notified. SAIL shall not be notifying any such modification
separately through any other media.
Decision of SAIL in respect of the above would be final and binding on the parties.
99.. GGoovveerrnniinngg LLaawwss//JJuurriissddiiccttiioonn//AArrbbiittrraattiioonn
All matters relating to the JV formation process and the bidding procedure shall be governed
by the laws of Union of India. Only courts at New Delhi (with exclusion of all other courts)
shall have the jurisdiction to decide or adjudicate on any matter, which may arise out of or in
connection with the JV formation process.
Joint Venture Participation : Slag Cement Plant –Kulti, West Bengal Information Memorandum
Page 17 of 21
Section V: Formats
11.. EExxpprreessssiioonn ooff IInntteerreesstt
(To be forwarded on the letter head of the interested party submitting the EoI)
Ref. Date
To
Board of Directors
Steel Authority of India Limited
New Delhi – 110 003
INDIA
Sirs
Sub: Cement Plant Joint Venture - Kulti, West Bengal : Expression of Interest
for Joint Venture Participation
Please refer to your advertisement no. ______________dated ______________ and your
Information Memorandum (IM).
We have read and understood the contents of IM and are desirous of participating in the above
Joint Venture process. In this context, we propose to submit this Expression of Interest (EoI).
Our EoI is for participating in JV in respect of the Slag Cement Plant – Kulti, West Bengal.
We believe that our Company satisfies the eligibility criteria set out in the relevant sections of
the IM. The litigation impact statement of legal capacity and Request for Qualification as per
format, indicated in the IM duly signed by us are enclosed.
We shall be glad to receive further communication on the subject.
Yours faithfully,
( __________________)
Authorised signatory
for and on behalf of
(_____________)
Joint Venture Participation : Slag Cement Plant –Kulti, West Bengal Information Memorandum
Page 18 of 21
22.. LLiittiiggaattiioonn IImmppaacctt SSttaatteemmeenntt
(To be forwarded on the letter head of the interested party submitting the EoI)
Ref. Date
To
Board of Directors
Steel Authority of India Limited
New Delhi – 110 003
INDIA
Sirs
Sub: Cement Plant Joint Venture - Kulti, West Bengal : Expression of Interest
for Joint Venture Participation
We refer to the Information Memorandum (IM). We have read and understood the contents of
the IM and pursuant to this hereby confirm that we satisfy the eligibility criteria laid out in the
IM.
We hereby confirm that save as may be set out in the schedule attached to this statement,
there is no litigation (including court, arbitration and other proceedings), inquiry or order from
any regulatory authority, current or pending against us, which if adversely determined might
have material adverse impact on our ability to carry on our business or pay our debts as they
fall due or on our ability to enter into any of the transactions contained in or contemplated in
respect of the formation of JV with SAIL .
Further, the authorized signatory is vested with requisite powers to furnish such letter and
Request for Qualification and authenticate the same
Yours faithfully,
( __________________)
Authorised signatory
for and on behalf of
(_____________)
Joint Venture Participation : Slag Cement Plant –Kulti, West Bengal Information Memorandum
Page 19 of 21
33.. RReeqquueesstt ffoorr QQuuaalliiffiiccaattiioonn
Name of the Interested Party:
Whether incorporated in India Y / N
Constitution: Public Sector: Public Sector
Private Joint Sector
Co-op Society Private Sector
Partnership Others
Nature of Business / Products dealt with:
Date of Incorporation: / /
Date of Commencement of Business: / /
Full Address including Telephone nos./ Fax nos. / e-mail addresses
Registered Office
Head office
Address for communication
Manufacturing Facility(ies)
Basis of Eligibility for participation in Joint Venture Process
Cement capacity as on ________ (latest audited account) is _____________ million
tones per annum (MTPA)
FY 2009-10 FY 2008-09 FY 2007-08
Financial Year ending on (DD/MM/YY)
a. Cement Production (MTPA)
b. Turnover (Rs Million)
c. Networth* (Rs Million) as on ________ (latest audited account) is ____________
* Basis of the calculations to be provided
Please attach supporting documents e.g. Audited statement of account/ annual report etc for
all relevant years.
Contact Persons
Joint Venture Participation : Slag Cement Plant –Kulti, West Bengal Information Memorandum
Page 20 of 21
Yours faithfully,
( __________________)
Authorised signatory
for and on behalf of
(_____________)
Place_____________
Dated_____________
44.. PPrrooppoosseedd BBuussiinneessss PPllaann
A brief write up on the business plan for the proposed joint venture company to be provided
by the party submitting the EoI.
Joint Venture Participation : Slag Cement Plant –Kulti, West Bengal Information Memorandum
Page 21 of 21
Annexure
Steel Authority of India Limited
(Corporate Office)
Ispat Bhawan, Lodi Road, New Delhi-110 003, INDIA
“INVITATION FOR EXPRESSION OF INTEREST FOR JOINT VENTURE
PARTICIPATION”- SLAG CEMENT PLANT –KULTI, WEST BENGAL
Steel Authority of India Limited (SAIL) proposes to set up a Slag based Cement Plant (SCP)
to utilize the slag generated at its IISCO Steel Plant (ISP) at Burnpur, West Bengal. The
capacity of the proposed cement plant shall be in the range of 2 Million tonne per annum with
a view to optimize the use of slag generated to the extent of 1 Million tonne per annum at ISP,
Burnpur, West Bengal.
SAIL invites Expression of Interest (EoI) from interested parties for setting up of SCP as a
Joint Venture.
Last date for submission of EoI is 1200 hours on 7th
June, 2010. Details relating to eligibility,
manner and place of submission of EoI and some brief information is available in the
Information Memorandum (IM), which may be accessed at the website www.sailtenders.co.in
Interested parties, if needed, may contact : Mr Dinesh Likhi GM(BP) Steel Authority of India
Limited, Ispat Bhawan, Lodi Road,New Delhi – 110 003(Tel: 24365701)
This announcement is neither a prospectus nor an offer/invitation for sale of equity shares or
any securities to any institution/public.
Regd. Office : Ispat Bhawan, Lodi Road, New Delhi 110 003