E-auction Notice (05.06.

2018 – 45th E-auction)

IRON ORE CLO

The Odisha Mining Corporation Ltd intends to sell various grades of Iron ore produced at
different iron ore mines at Daitari and Gandhamardan Regions in Keonjhar District & Koira Region
in Sundargarh District, Odisha. The OMC Ltd has decided to use the service of MSTC Ltd (a Govt.
of India Undertaking) to conduct e-auction for selling its (OMC) Iron Ore.

The terms and conditions for sale of Iron Ore of OMC Ltd
through e-auction.

1. Iron Ore Specification, Quantity, Floor price & Earnest money deposit

Location Grade band Basis Quantity Floor price Pre-bid EMD

Item Size Tolerance: ±10% Fe (in WMT) (Rs./WMT) (Rs./WMT)
No. 4% of Col.6
1 2 3 4 5 6 7
A Daitari 10–40mm,(+62%Fe) 62% 1,00,000 3400.00 136
B.F. grade CLO,

B Gandha- 10–40mm,(+62%Fe) 62% 1,00,000 3500.00 140

mardan B.F. grade CLO

10–180mm,(+65%Fe) 65% 15,000 2500.00 100

Lump ore

C Koira 10–40mm,(+62%Fe) 62% 65,000 3600.00 144

B.F. grade CLO,

2. Based on the above material description, the MSTC shall prepare detailed e-auction
catalogue showing lot, description, quantity, floor price and shall make available such catalogue
in its website at least 7 days before the date of e-auction. However, in case of exigencies, such
catalogue may be made available in the website at lesser period of notice, before the schedule
date of e-auction.
3. ELIGIBILITY CRITERIA:
(a) State based MoU signed Steel Plants with whom long term linkage has been
established.
(b) Steel Plants, Sponge Iron Plants & Pig Iron Plants inside Odisha & outside Odisha.
(c) Iron ore lessees and its sister concern are allowed to participate in the national e-
auction whether their mines is operative or inoperative.

(d) Pellet & Sinter making end-use industries inside Odisha & outside Odisha – iron ore
fines only
(e) State based Crusher Units
i) For Soft Iron Ore of Putulpani of Gandhamardan Mines
ii) For BF grade Iron Ore of Barpada Kasia Mines of Barbil Region.
There will not be any restriction on empanelment of new buyers of above categories
for participation in e-auction.

NO TRADERS SHALL BE ALLOWED TO TAKE PART IN THE

ABOVE NATIONAL E-AUCTION
Those buyers/bidders who have not registered their name(s) with the MSTC Ltd cannot
participate in e-auction.

4. Inspection: OMC shall allow inspection of materials at site to be auctioned to all interested
prospective buyers prior to the e-auction on written request of the buyers.
5. Registration: To become eligible to participate in e-auction, the intending buyers are
required to register their names with MSTC on any date before 7 days of e-auction to be
conducted. For the purpose of registration, the buyers are required to submit the following
documents before MSTC Ltd along with registration fees of Rs.10,000/- plus 18% Goods & service
tax thereon.

Documents required for Registration:

(i) Duly signed print out of the email received from MSTC regarding confirmation of online
Registration.

(ii) Income Tax PAN Card Original & Photocopy (the Original will be returned after verification)
or Notarised copy. In case of Partnership firm, PAN of the firm and that of the Authorized
partner.

(iii) In case of Partnership firm, Notarised copy of Partnership deed and in case of Limited
Company Memorandum and Articles of Association.

(iv) Latest Income Tax Return Original & Photocopy (the Original will be returned after
verification) or Notarised copy. In case where it is not available, an undertaking should be
taken on letter head that as soon as the same is filed, it will be submitted.

(v) GST Registration Certificate Original & Photocopy (the Original will be returned after
verification).

(vi) Registration Fee of Rs.11,800/- (Non-Refundable) by way of e-payment favouring MSTC

Ltd. for life time validity.

(vii) Signature of the Proprietor/Partner/Director verified by Bank (For Proprietorship/

Partnership Firm/Company) on Bank’s Letter-head. If such verification is done on
Customer’s Letter-head, then the full Address of the Branch of the Bank must be
mentioned.

(viii) Two identical Passport-size Color Photographs of the Proprietor / Partner / Director (For
issue of Photo ID Card by MSTC) – The Proprietor / Partner/ Director (or a person
authorized by the Director in case of Public / Private Limited Company) with proper
identification of such authorized person will be required to put his specimen signature on
the ID Card. In case of Proprietorship/ Partnership Firm, the Proprietor/Partner will be
required to personally visit MSTC's Office for signing the Photo ID Card.

ix) IBM Registration Certificate under Rule MCDR (Amendment), 2011.

x) Consent to establish and/or consent to operate from State Pollution Control Board
indicating utilization of chrome ore for obtaining finished product. (the Original will be
returned after verification).

6. Earnest Money Deposit (EMD): The MSTC Ltd shall collect pre-bid non-interest bearing
EMD from the prospective bidders to enable them to participate in the e-auction. The EMD amount
shall be @ 4% of the respective grade floor price per WMT. The buyers are required to deposit
EMD separately for the grade and the quantity of their requirement. The buyers may deposit the
EMD by way of e-payment link provided in the bidder’s login page.
RTGS Particulars of MSTC:

Pre Bid EMD Payment should be remitted using the e-

payment link provided in Bidder’s login in
www.mstcecommerce.com website only. No other
modes of Payment shall be acceptable. For e-payment,
please refer e-pay guide available at URL given below:

http://www.mstcindia.co.in/Userfiles/Attachments/Lot_Details/LotDetails_17-
18_15564_154537.pdf

Procedure for payment of Pre Bid EMD using e-payment link available in bidder
login by RTGS/NEFT Mode:

STEP 1 ENTER BUYER USER ID & PASSWORD

STEP 2 CLICK ON "e-Payment" link

STEP 3 SELECT PAYMENT TYPE AS: "Pre-Bid EMD"

STEP 4 SELECT THE REGION/BRANCH OF MSTC AS: "BBR-Bhubaneswar Office"

STEP 5 Enter Auction Search Information: SELECT AUCTION NO. 18-19/XXXX

STEP 6 Select an Auction : "Select OMC Auction ending with 18-19/XXXX"

STEP 7 SELECT LOT NOs.

STEP 8 Amount : Enter Total Pre Bid EMD Amount

CLICK ON "RTGS/NEFT" link and FILL "SCRAP RTGS PAYMENT" CHALLAN

STEP 9
WITH YOUR DEBIT BANK A/C DETAILS and then CLICK ON "PRINT"

REMIT THE PRE BID EMD AMOUNT TO BENEFICIARY A/C DETAILS GENERATED
STEP 10 BY SYSTEM (Indus Ind Bank, BHUBANESWAR A/C NO. STARTING WITH
ZMSBBRxxxxxxxxxxx, IFSC:INDB0000035)

Buyer has to send the scanned copy of SCRAP RTGS PAYMENT challan copy
STEP 11 with UTR details to MSTC Bhubaneswar office by email
rmahesh@mstcindia.co.in

The EMD should be deposited with MSTC minimum one working day before the e-auction.

The EMD amount should commensurate with the bidding quantity. The bidding shall no
way exceed the quantity for which EMD is deposited by the buyer. The MSTC shall refund the EMD
amount of unsuccessful bidders within 2 working days on request.
EMD of successful bidders shall be forwarded by MSTC to OMC, Bhubaneswar along with
the bid sheet. OMC may refund the EMD of any buyer if the EMD related lot price is not accepted
by OMC Ltd. The EMD of the allottees shall be retained by OMC till completion of the lifting period
and the same shall be refunded after successful lifting of at least 80% of the auctioned/ allotted
quantity .
If the buyer fails to lift 80% of the allotted quantity penalty shall be charged @2% plus
GST of the sale value of the unlifted quantity calculated from the total quantity allotted. In case
of extension of supply period, sale value (to be calculated at the higher price comparing the price
at the time of allotment and the price prevailing at the time of extension) applicable during the
extension period shall be considered for calculation of Penalty. The Penalty shall be adjusted from
EMD. In case the penalty amount exceeds EMD, the same shall be recovered from the allottee
with observance of the procedure of OMC.
An agency making a part payment within the stipulated time shall be eligible for sale order
and shall be considered for lifting for that part payment.
However, refund of EMD may be considered in favour of a buyer even in the case of non-
lifting/ partial lifting if the buyer happens to be a victim of some insurmountable/ hostile conditions
arising out of strikes/break down of weighbridge/ order of statutory authorities etc. and any other
reason beyond the control of the bidder/ OMC.
7. Date of e-auction: The e-auction for Iron ore Fines shall take place from 11.00 AM to
2.00 PM on 05.06.2018. The service provider shall conduct e-auction on the appointed date and
time in a fair and transparent manner or on any other date if re-scheduled.
8. Quantity & lot size: Lot size shall be of 1000 MT each. The intending bidders can bid for
1000 MT or any quantity multiple of 1000 MT and bid for a maximum quantity shall be equal to 3
months consumption capacity of its Plant. The plant consumption capacity shall be determined
from various licenses and statutory permits/clearances etc. issued by the competent Government
agencies in this regard.
OMC may conduct e-auction on monthly/ bimonthly /quarterly basis as per its requirement
and convenience. A buyer can participate in any number of e-auction. However, the maximum bid
quantity for a buyer in any single e-auction will be decided as given below.
Maxm. Bid Qnty. = (3-monthly Plant - (Total qnty. allotted to the buyer within the
Consumption Capacity) past 90 days through previous e-auctions)

e.g. If e-auction is taking place on 24.01.2015 and a buyer, having plant consumption capacity
of 50,000 MT per 3 months , had been allotted with 20,000 MT within past 90 days; then it can
bid for only 30,000 MT in the e-auction of 24.01.2015.

9. Price: The price per WMT offered by the successful bidders at the time of e-auction
includes royalty, District Mineral Fund (DMF) & NMEFT charges & weighment charges to be borne
by OMC Ltd. and is on ex-mines/plot. Taxes and duties are applicable extra. Besides, the quoted
price is meant for the base grade of ore (mentioned as basis) and the actual percent of Fe basis
shall be applied for computation of the price on prorate basis which will be reflected in invoice.
The price on basis of which the bidder is declared successful shall be exclusively applicable to
itself only. There shall be no complaint by any buyer about price even the same grade material
receives different prices. A successful bidder shall be allotted the quantity it quoted at the
price/final price offered by it subject to approval by OMC Ltd.
10. Website & e-mail ID: All the prospective buyers should have their internet connection
& e-mail ID. Each registered buyer shall be given an auto generated “Unique User ID” & a
“Password” by MSTC based on which they can log in.
11. Bidding Process: The entire bidding process shall be regulated by the MSTC Ltd. The
buyers from their respective offices shall visit the website of MSTC Ltd i.e.
www.mstcecommerce.com for bidding purpose. The buyer shall offer the quantity and price of the
material of their choice (for which EMD is deposited) through on-line. During the bidding process,
the buyers may change the price & quantity of the material subject to EMD amount deposited.
The increase in ore price must be in terms of Rs.50/WMT minimum or multiple of
Rs.50/-.The buyer can not reduce the price once quoted. It can reduce the quantity with a higher
price. The price quoted shall not be less than the floor price. The e-auction shall be completed
after the scheduled time provided the closing time is preceded by Eight minutes pause period.
The e-auction shall continue for further eight minutes if a buyer changes the bidding during the
pause period and the process shall continue so on. Regarding continuation of e-auction for the
maximum period and interruption in e-auction caused due to some external factors, the decision
of the MSTC in this regard shall be binding on the bidders. The MSTC, immediately after completion
of e-auction shall communicate each successful bidder through auto e-mail about the bid quantity
and price. However, this bid quantity and price communicated to the bidders by MSTC Ltd is
provisional and subject to approval by OMC Ltd. The MSTC shall send the bid sheet & EMD of
successful bidders to OMC by the next day of e-auction. OMC has the absolute right to confirm or
disapprove the sale of any particular lot made successful in e-auction.
12. Allotment: After receipt of bid sheet and EMD of successful bidders, OMC shall examine
the same. After due approval of the price & quantity by the competent authority, OMC shall allot
Iron Ore to the successful bidders.

13. Payment Terms:

i) The buyer has to lift the material against 100% non-interest bearing advance through DD/
Bankers cheque of nationalized/scheduled Bank duly approved by the R.M., OMC Ltd as
per prevailing practice & procedures of OMC.
ii) Direct credit to OMC Bank account operating at Regional Office.
iii) LC at sight. However 1% of the material cost shall be charged for LC processing.
iv) The buyer shall forfeit its right for the EMD in case it fails to deposit the material value
with taxes/duties etc..
v) The buyers may deposit the said 100% advance amount in phased manner.
vi) An agency making a part payment shall be eligible for sale order & shall be considered for
lifting for that part payment.
vii) This price is inclusive of royalty. However, in case royalty is enhanced during the tenure
of contract, the enhanced royalty shall be charged against the buyer from the date of its
implementation as per the Govt. Order.
14. Delivery Period: 60 days from the date of contract. Extension of supply period may
be considered by MD at the discretion of OMC. While considering grant of time extension
the contractual price or the price prevailing at the time of allowing extension whichever
is higher shall be made applicable during the extended period of contract.
15. Place & mode of delivery: Ex-Mines/stack yard at various Iron ore mines of OMC Ltd.
The buyer will arrange to lift the material by truck from the place where the ore is lying for sale
on his own arrangement. The responsibility of OMC Ltd. ceases once the material is delivered to
the buyer and Transit pass is issued after weighment. The buyer shall keep the seller indemnified
for any liability which may arise during the contract or thereafter on account of loading, transport
and such other matters as are thereto to their exercise.

As per “The Environment Protection Act-2006” and guidelines, the buyer should ensure
that the loaded trucks are to be covered with tarpaulin during transport.

OMC may provide extra service upon request from buyers and agreement of OMC again
subject to reimbursement of all expenditure as per actual.
16. Sampling & Analysis: Sampling & Analysis shall be carried out by a reputed public
analyst. The report of public analyst will be binding on both buyer and seller. Analysis charges as
applicable for iron ore shall be borne by the buyer. The buyer may depute its representative for
supervision of sampling & analysis and stock or ore to be supplied to the buyer to avoid any
complicacy regarding quality and physical specification during the process. The responsibility of
OMC Ltd ceases once the product is loaded in to the carrier and no complaint in this regard shall
be entertained.
17. Goods & Services Tax: Goods & Services Tax (GST)as applicable shall be charged extra.
18. Weighment: For the purpose of payment, weighment as recorded in OMC’s weighbridge
shall be final. In case OMC’s own weighbridge is not available, the weigh bridge as decided by
OMC shall be final for this purpose.
19. Dispute: The decision of the Chairman / Managing Director, OMC Ltd. shall be final on any
dispute arising out of the above deal. In the event the MD/CMD is not available to decide their
dispute, a retired Dist. Judge of the state may be appointed as the sole arbitrator to arbitrate and
decide the dispute in accordance with the Act 1996 r/w the Amendment Act 2015.
20. Sale of Goods Act: The provision of the Sale of Goods Act, 1930 and other prevalent laws
shall apply to the sales in question.
21. Special condition :
a) The buyer shall carry out loading and transporting of materials allotted by OMC and comply
strictly with all provisions of Mines Act-1952, Rules-1955, Metalliferous Mines Regulation-1961,
MMRD Act, Payment of wages (Mines Rules), Maternity benefit Act of 1961, Industrial dispute Act-
1947,MV Act, Contract Labour (R&A)-1970 etc. and “other government/statutory regulations,
decisions, recommendations prevailing and applicable from time to time.
b) The buyer allotted ore/material, shall submit a true copy of the said contract with signature
in each page to concerned Regional Manager prior to execution of SO (Sales Order), as a token
of acceptance of terms and conditions of contract.
c) (i) The MSTC Ltd shall act only as a Service Provider for conducting e-auction and shall not
be a party to the Sale Contract(s) between OMC Ltd and the buyer(s).

(ii) Since materials to be sold will never come under the custody or possession of the MSTC
Ltd, no complaint from the bidders on account of quality and/or quantity of goods shall lie
against the MSTC Ltd.

(iii) The MSTC shall not be responsible for any inconvenience caused due to any disruption in
internet service at bidders’ end.

(iv) The MSTC shall be responsible for e-auction process and any dispute arising out of e-
auction process which shall be addressed by the MSTC even in the court of law.

d) OMC management reserves the right to defer/accept/discharge the part or whole of e-

auction without assigning any reason thereof.

This e-auction is subject to the outcome of the Writ petition (C) No. 7898 of 2018 and Writ
petition (C) No. 7909 of 2018 pending in the Hon’ble High Court of Odisha .

GENERAL MANAGER(S&M)