Auction of Coal Mines for Production of Iron & Steel 5 th Tranche SCOPE Complex, New Delhi April 24, 2017
Background Apr’17 • Start of the Dec’14 - Mar’17 auction process • Issuance of for 6 Schedule III Vesting Orders for coal mines for Dec’14 29 coal mines production of • The Coal Mines iron & steel – 5 th • Issuance of (Special Tranche Allotment Orders Provisions) Rules, for 51 coal mines Oct’14 2014 • The Coal Mines (Special Provisions) Ordinance, Sep’14 2014 • Cancellation of allocation of 204 coal blocks by Hon’ble Supreme Court 2
5 th Tranche of Coal Mines Auction | List of Coal Mines S. No. Coal Mine Sch Location PRC (MTPA) Brahmadiha III Jharkhand 0.15 1 Choritand Tiliaya III Jharkhand 0.78 2 Jogeshwar & Khas Jogeshwar III Jharkhand 0.60 3 Rabodih OCP III Jharkhand 2.50 4 Rohne III Jharkhand 8.00 5 Urtan North III Madhya Pradesh 0.60 6 Abovementioned coal mines are earmarked for the specified end use of production of Iron & Steel 3
5 th Tranche of Coal Mines Auction | Important Dates Event Description Estimated Date Last date of receiving request for site visit Friday, May 12, 2017 Bid Due Date (last date for Technical Bid submission) Friday, May 19, 2017 Opening of the Technical Bids Monday, May 22, 2017 End date for examination of the Technical Bid(s). Monday, June 12, 2017 Conduct of electronic auction (Financial Bid) for the Tuesday, June 13, 2017 to Qualified Bidders Monday, June 19, 2017 Recommendation of Successful Bidder to GoI by the Wednesday, June 21, 2017 Nominated Authority Intimation to the Successful Bidder (subject to GoI Monday, July 03, 2017 clearance) Execution of the Agreement between the Successful Wednesday, July 05, 2017 Bidder and the Nominated Authority Last date for furnishing of PBG and payment of one-time Friday, August 04, 2017 payments by the Successful Bidder Issuance of Vesting Order by Nominated Authority Tuesday, August 08, 2017 4
Tender Process
Online Electronic Auction Process Method of Bidding – Ascending Forward Auction 2-Stage Online Electronic Auction Tender Doc to be purchased upon payment of Rs. 5 lakh per Bid Technical Bid Financial Bid Compliance with Eligibility > Floor Price Conditions Initial Price Offer Final Price Offer To be submitted along with To be submitted against Technical Bid Qualified Bids 6
Technical Bid | Eligibility Conditions Eligible Bidder: A Company engaged in the specified end use ‘or’ A JV Company formed by two or more Companies each having a common specified end use If the Bidder is a prior allottee, If the Bidder is a JV Company, • should have paid the applicable • hold at least 20% of voting rights Additional Levy within prescribed time period • off-take and utilise at least 20% of the coal reckoned on an annual basis • should not have been convicted for an offence relating to coal mine • independently meet the qualifying allocation and sentenced with requirements regarding Specified imprisonment for more than three End Use and specified expenditure of years the Total Project Cost • coal requirement of Specified EUP belonging to each of the JV Partners shall be considered collectively 7
Technical Bid | Eligibility Conditions ..2 Coal Entitlement - Coking Coal Coal Entitlement - Non-Coking Coal • Extractable coking coal reserves of a • Extractable non-coking coal reserves specific coal mine should not of a specific coal mine should not exceed 150% of 30-year coal exceed 150% of 30-year coal requirement of a Specified EUP requirement of a Specified EUP engaged in the production of hot engaged in the production of DRI metal i.e. blast furnace less the coal and captive power less the coal requirement of such EUP met from requirement of such EUP met from any other coal mine allocated to the any other coal mine allocated to the Bidder thro’ auction or allotment by Bidder thro’ auction or allotment by the Nominated Authority the Nominated Authority • Not applicable for Brahmadiha, Rohne and Urtan North coal mines • Annual coal requirement of the specified EUP to be determined at 85% PLF or capacity utilization , as the case may be, in conformity with the consumption norms provided in the Tender Document 8
Technical Bid | Eligibility Conditions ..3 Total Project Cost & Expenditure Bidders with Coal Linkage or MoU Incurred • Bidder should have incurred an • In case the Bidder becomes the expenditure of at least 60% of the Successful Bidder, then the Total Project Cost of a unit or phase entitlement to receive coal pursuant of the specified EUP(s) to such coal linkage or MoU for supply of coal executed by a coal producing Government company • If EUP is being commissioned in units shall stand proportionately reduced or phases and one or more units or on the basis of the requirement of phases are eligible under above coal being met from the Coal Mine provision, then at least 30% expenditure of the cost should already have been incurred on such • Existing coal linkage or MoU shall be other units or phases for Schedule III tapered off as per extant policy Coal Mines Limitation on Total No. of Bids – With respect to 1 (one) Specified End Use Plant only 1 (one) Bid may be submitted for the Coal Mine, either individually or as a part of joint-venture, either directly or indirectly 9
Technical Bid | Documents to be Submitted Certification of Total Project Cost & Expenditure Total Project Cost Expenditure Incurred Operational EUP • To be certified by lead • To be certified by statutory • Certificate from statutory secured creditor if the EUP auditor of the Bidder or JV auditor of the Bidder (or JV is lender financed Partner, as the case may be Partner, as the case may be), confirming that the EUP is operational • To be certified by statutory auditor of the Bidder or JV Partner, as the case may be, if the EUP is not financed by lenders Capacity of the Specified EUP as mentioned in the total project cost/ expenditure certificate issued by the secured creditors or statutory auditor of the Bidder, as the case may be, shall be considered 10
Technical Bid | Documents to be Submitted …2 Online Submission – Offline Submission – Scanned Copies Original Documents Technical Bid Bid Security Letter Comprising Technical Transaction Fee Security Bid Board Resolution should • pre-date Power of Supporting Certificates Board Resolution Attorney Power of Attorney should • Scanned Copy of Documents pre-date the documents to be submitted offline Power of Attorney submitted as part of the (Optional) Technical Bid Affidavit 11
Determination of Qualified Bids • Technical Evaluation Committee will evaluate Technical Bids • Technically Qualified Bids will be shortlisted Evaluation of • Bidders who have submitted Technically Qualified Bids shall be Technically Qualified Bidders Technical Bids (TQBs) • IPOs of only Technically Qualified Bids will be opened Ranking of • Technically Qualified Bids shall be ranked in a descending order on the basis of Technically the IPO • IPOs which are equal shall be assigned the same rank Qualified Bids • If (No. of ranks -1) >= 5, then except for the TQ Bid(s) which Determination occupy the last rank, each of the remaining TQ Bid(s) shall be considered to be the Qualified Bids of Qualified • Else, all TQ Bid(s) shall be considered to be the Qualified Bids Bids • However, if (No. of TQ Bid(s) none of which is a Cluster + No. of Clusters) < 3, no TQ Bid shall be considered to be the Qualified Bid Cluster – Rank Bids submitted by TQBs who are Group Companies – Rank Bids submitted by the same TQB Technically Qualified Bidders which submitted the respective Qualified Bids shall be the Qualified Bidders (QBs) 12
Selection of Successful Bidder • Applicable Floor Price for the e-auction will be the highest IPO offered by a QB Submission of • Minimum 1 FPO should be placed on MSTC e-auction platform by any of the QB for Final Price successful auction; otherwise, the auction process for that particular mine will be annulled Offer (FPO) • The QB who offers the highest FPO in e-auction will be declared as a Preferred Determination Bidder of Preferred Bidder • Nominated Authority will recommend the name of the Preferred Determination Bidder to the Central Government • When Central Government directs the Nominated Authority to of Successful issue Vesting Order, the Preferred Bidder will become the Bidder Successful Bidder • Successful Bidder shall execute the CMDPA with the Nominated Authority and within the prescribed Execution of time period, the Successful Bidder shall CMDPA o furnish the Performance Security o pay Fixed Amount & first instalment of Upfront Amount • Vesting Order will be issued to the Issuance of Successful Bidder by the Vesting Order Nominated Authority 13
Payments/ Guarantees
Recommend
More recommend
