Odisha GoO Blank Tender Document For Grant of ML Without End Use Reservation NIT 18 10 2019
Odisha GoO Blank Tender Document For Grant of ML Without End Use Reservation NIT 18 10 2019
Odisha GoO Blank Tender Document For Grant of ML Without End Use Reservation NIT 18 10 2019
GOVERNMENT OF ODISHA
Mining Lease
Block _______
This Tender Document is non-transferable. The Price of the Tender Document is INR 2,00,000
(Rupees Two Lakh) for Kalimati Manganese Block and INR 5,00,000 (Rupees Five Lakh) for all
other mineral blocks.
Contents
1. Important information
1.1. This Tender Document has been issued pursuant to notification of an area with the
intent to carry out e-auction for grant of a mining lease for [Name of the Mineral],
pursuant to the Act and the rules framed thereunder. All information provided in this
Tender Document should be read together with the Act and the rules framed
thereunder. In the event of a conflict between this Tender Document and the Act or
the rules, the Act or the rules (as amended from time to time), as the case may be,
shall prevail.
1.2. The information contained in this Tender Document or subsequently provided to
Bidder(s), in documentary or any other form by or on behalf of the State Government
or any of its employees or advisors, is provided to Bidder(s) on the terms and
conditions set out in this Tender Document.
1.3. This Tender Document is neither an agreement nor an offer by the State Government
to the prospective Bidders or any other person. The purpose of this Tender Document
is to provide interested parties with information that may be useful to them in making
their bids pursuant to this Tender Document. This Tender Document includes
statements which reflect various assumptions and assessments arrived at by the State
Government in relation to the mineral block. Such assumptions, assessments and
statements do not purport to contain all the information that each Bidder may require.
This Tender Document may not be appropriate for all persons, and it is not possible
for the State Government, its employees or advisors to consider the investment
objectives, financial situation and particular needs of each party who reads or uses
this Tender Document. The assumptions, assessments, statements and information
contained in the Tender Document may not be complete, accurate, adequate or
correct. Each Bidder should, therefore, conduct its own investigations and analysis
and should check the accuracy, adequacy, correctness, reliability and completeness of
the assumptions, assessments, statements and information contained in this Tender
Document and obtain independent advice from appropriate sources.
1.4. Information provided in this Tender Document to the Bidder(s) has been collated
from several sources some of which may depend upon interpretation of Applicable
Law. The information given is not intended to be an exhaustive account of statutory
requirements and should not be regarded as complete. The State Government accepts
no responsibility for the accuracy or otherwise for any statement contained in this
Tender Document.
1.5. The State Government, its employees and advisors make no representation or
warranty and shall have no liability to any person, including any Bidder under any
law, statute, rules or regulations or tort, principles of restitution or unjust enrichment
or otherwise for any loss, damages, cost or expense which may arise from or be
incurred or suffered on account of anything contained in this Tender Document or
otherwise, including the accuracy, adequacy, correctness, completeness or reliability
of the Tender Document and any assessment, assumption, statement or information
contained therein or deemed to form part of this Tender Document or arising in any
way from participation in this tender process.
1.6. The State Government also accepts no liability of any nature howsoever caused
arising from reliance of any Bidder upon the statements contained in this Tender
Document.
1.7. The State Government may in its absolute discretion, but without being under any
obligation to do so, update, amend or supplement the information, assessment or
assumptions contained in this Tender Document.
1.8. The issue of this Tender Document does not imply that the State Government is
bound to select a Bidder or to appoint the Preferred Bidder as Successful Bidder for
the mineral block and the State Government reserves the right to reject all or any of
the Bidders or bids without assigning any reason whatsoever.
1.9. Each Bidder shall bear all its costs associated with or relating to the preparation and
submission of its bid including but not limited to preparation, copying, postage,
delivery fees, expenses associated with any demonstrations or presentations which
may be required by the State Government or any other costs incurred in connection
with or relating to its bid.
1.10. This Tender Document is not transferable. The price paid by the Bidder for the
Tender Document shall not be refunded.
2. Definitions
The words and expressions used herein but not defined herein shall have the same meaning as
assigned to them in the Act or the rules made thereunder. The following definitions apply to
this Tender Document, unless the context otherwise requires:
2.1. “Acceptable Bank” shall mean a Scheduled Bank as listed in the Second Schedule of
the Reserve Bank of India Act, 1934, excluding those listed under the headings of
Gramin Banks, Urban Co-operative Banks and State Co-operative Banks.
2.2. “Act” means the Mines and Minerals (Development and Regulation) Act, 1957 (67 of
1957) as amended from time to time.
2.3. “Applicable Law” shall mean all applicable statutes, laws, by-laws, rules,
regulations, orders, ordinances, protocols, codes, guidelines, notices, directions,
judgments, decrees or other requirements or official directive of any governmental
authority or court or other law, rule or regulation approval from the relevant
governmental authority, government resolution, directive, or other government
restriction or any similar form of decision of, or determination by, or any
interpretation or adjudication having the force of law in India at the relevant point in
time.
2.4. “Auction Rules” mean the Mineral (Auction) Rules, 2015 as amended by Mineral
(Auction) Amendment Rules, 2017 and from time to time.
2.5. “Authorised Signatory” shall mean the individual representing a Bidder who has
been duly authorised on behalf of such Bidder to execute and submit the Bid in
accordance with the terms hereof, as set forth in Clause 13.1.1(c).
2.6. “Bidder” means a person who has purchased this Tender Document, and the
expression Bidders shall include all such persons.
2.7. “Bid Due Date” shall mean the date on which the Technical Bid and the initial price
offer is required to be submitted in accordance with Clause 8.1A(a).
2.8. “Bid Security” shall have the meaning given to such expression in Clause 14.
2.9. “Final Price Offer” shall have the meaning given to such expression in Clause
8.1B(a).
2.10. “Floor Price” shall have the meaning given to such expression in Clause 8.1A(d).
2.11. “Information Memorandum” means the information memorandum provided
separately containing amongst others, information specified in Clause 4.1.
2.12. “MDPA” means the Mine Development and Production Agreement in the format as
specified in Schedule IV (Format of MDPA).
2.13. “Mineral Block” means Block _______.
2.14. “Performance Security” means a bank guarantee in the format as provided in
Schedule III of the Auction Rules or a non-interest bearing security deposit to be
provided in terms hereof;
2.15. “Preferred Bidder” shall have the meaning given to such expression in Clause
8.1B(c).
2.16. “Qualified Bidders” shall have the meaning given to such expression in Clause
8.1A(e).
2.17. “Reserve Price” shall be as provided under Clause 9.
2.26. “Value of Mineral Despatched” shall have the meaning given to such expression in
Clause 9.1.
3. Introduction
3.1. The Act stipulates grant of mining lease through e-auction in respect of minerals
which vest in the government other than
i. minerals notified as Minor Mineral(s) specified in clause (e) of section 3 of
the Act;
ii. minerals specified in Part A of the First Schedule to the Act; and
iii. minerals specified in Part B of the First Schedule to the Act having grade
equal to or more than the threshold value as specified and notified under the
Atomic Minerals Concession Rules, 2016.
3.2. In exercise of powers conferred by Section 13 of the Act, the Central Government has
notified the Auction Rules and the Minerals (Evidence of Mineral Contents) Rules,
2015. The Bidders are encouraged to acquaint themselves with the Act and the rules
made thereunder.
3.3. This Tender Document is being issued by the State Government, for e-auction for
grant of a mining lease over the Mineral Block.
3.4. The e-auction would be conducted in accordance with the Act, the Auction Rules, the
Minerals (Evidence of Mineral Content) Rules, 2015, any other order or notification
issued by the Central Government pursuant to the Act and this Tender Document.
3.5. The Bidders are expected to conduct due diligence regarding the land to be
comprised in the mining lease and also familiarise themselves with all Applicable
Laws relating to acquisition of rights over such land to be comprised in the mining
lease including without limitation, the Act, the Forest Conservation Act, 1980, the
Panchayats (Extension to the Scheduled Areas) Act, 1996, the Orissa Scheduled
Areas Transfer of Immovable Property (By Scheduled Tribes) Regulations, 1956, the
Orissa Land Reforms Act 1960 and the Right to Fair Compensation and Transparency
in Land Acquisition, Rehabilitation & Resettlement Act 2013. At the request and cost
of the Successful Bidder, the State Government may, in its sole discretion, provide
assistance regarding acquisition of land comprised in the mining lease.
5. Eligibility
Pursuant to the Act and Rule 6 of the Auction Rules, the eligibility for participating in the e-
auction shall be as follows:
(a) The Bidder must meet the Conditions specified in Section 5 which is quoted below:
“5. Restrictions on the grant of prospecting licences or mining leases
(c) The bidder must comply with Section 6 of Mines and Minerals (Development and
Regulation) Act, 1957;
Explanation: Disallow participation of persons who are holding or may, in the event
of becoming highest bidders in the auction, hold the area in excess of the area limit
under section 6 (1) of the MMDR Act. It may however be noted that the area limit
would be governed as per the provisions under section 6 (1) of the MMDR Act.
The Central Government, in exercise of the powers conferred under the proviso to
clause (b) of sub-section (1) of Section 6 of the Act, has conveyed its approval vide
order No. 16/16/2018-M.VI dated September 20, 2019, for increasing the area limit of
mining lease in respect of Iron Ore and associated minerals to the extent of 58 Sq. Km
in the State of Odisha.
Explanation; for the purpose of associated minerals of Iron Ore, please refer to Rule
37 of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals)
Concession Rules, 2016.
(d) The eligibility conditions shall be used only for the purposes of determination of
eligibility for participating in the e-auction set out in this Tender Document. The
Preferred Bidder shall be decided solely on the basis of financial bids submitted by
the eligible Bidders.
7. Pre-bid conference
7.1. Potential bidders may seek clarifications or request further information regarding this
Tender Document.
7.2. Any queries or requests for additional information concerning this Tender Document
may be sent in .doc, .docx, .xls, .xlsx format only to the State Government by email to
directormines1@orissaminerals.gov.in in the format specified in Schedule II (Format
for seeking clarifications regarding the Tender Document).
7.3. The email should clearly bear the following subject line: “Queries/Request for
Additional Information: Tender Document for “Block _______”.
7.4. Each query should contain complete details of facts, information and Applicable Law
relevant to the query and also the particulars of the person posing the query. The State
Government reserves the right to not answer any query, including any query which is
incomplete or anonymous.
7.5. The queries should be emailed on or before the date specified in Clause 11 for
receiving queries.
7.6. The State Government shall endeavour to respond to the queries within the period
specified in Clause 11. However, the State Government reserves the right to not
respond to any question or provide any clarification, in its sole discretion, and nothing
in this Tender Document shall be taken or read as compelling or requiring the State
Government to respond to any question or to provide any clarification.
7.7. The State Government shall publish the queries for which response has been provided
on a website, without identifying the source of queries.
7.8. Pre-bid conference(s) of the potential bidders shall be convened at the designated date
as mentioned in Clause 11 at a time and place specified by the State Government.
7.9. A maximum of 3 (three) representatives of each potential bidder shall be allowed to
participate on production of duly issued authority letter from the potential bidder and
identity documents. During the course of pre-bid conference(s), they may seek
additional clarifications and make suggestions for consideration of the State
Government.
7.10. The State Government shall endeavour to provide clarifications and such further
information, as it may, in its sole discretion, consider appropriate for facilitating a
fair, transparent and competitive tender process.
7.11. The State Government may also on its own motion, if deemed necessary, issue
interpretations and clarifications to all potential bidders. All clarifications and
interpretations issued by the State Government shall be deemed to be part of the
Tender Document. Provided, however, that any non-written clarifications and
information provided by the State Government, its employees or representatives in
any manner whatsoever shall not in any way or manner be binding on the State
Government.
8. Bidding Process
8.1. Pursuant to sub-rule (4) of Rule 9 of the Auction Rules, the e-auction shall be an
ascending forward online electronic auction and shall comprise of attempts of auction
with each attempt of auction consisting of a first round of auction and a second round
of auction as follows:
A. First round of e-auction
(a) In the first round, the Bidders shall be required to submit on or prior
to 12:00 noon (IST) on Wednesday, December 04, 2019 (“Bid Due
Date”):
The Technical Bid and the initial price offer must be submitted
electronically as provided in Schedule III (Technical details
regarding online electronic auction). The duly executed original
physical copy of the Technical Bid must be hand delivered to the
Joint Director or the Designated Officer of Government of Odisha
for this specific purpose on the address specified in Clause 13.1.2
so that they are received on or prior to the Bid Due Date, failing
which the Technical Bid shall be deemed to be not received. In
case of a conflict between documents submitted electronically and
document hand delivered physically, the documents hand
delivered physically shall prevail. It is clarified that only the
Technical Bid is required to be submitted physically, and the
Bidders must not submit the initial price offer physically. In case
the Bidder submits the initial price offer physically, the Technical
Bid and the initial price offer will be summarily rejected.
(d) The highest initial price offer amongst the Technically Qualified
Bidders shall be the floor price for the second round of online
electronic auction (“Floor Price”).
Illustration:
(i) In the event there are a total of ten Technically Qualified
Bidders, and each Technically Qualified Bidder submits
different initial price offer, then the Technically Qualified
Bidders holding the first 50% (fifty percent) of ranks shall
be considered to be Qualified Bidders.
(ii) If three Technically Qualified Bidders submit the same
initial price offer and are ranked in first 50% (fifty
percent) of the total number of ranks, then all such three
Technically Qualified Bidders shall be considered to be
(f) Where the total number of Technically Qualified Bidders is less than
three, then no Technically Qualified Bidder shall be considered to be
Qualified Bidder and the first attempt of auction shall be annulled.
(g) On annulment of the first attempt of auction, the State Government may
decide to:
i. commence the auction process de novo with a separate set of
terms and conditions and reserve price as it may deem fit and
necessary; or
ii. conduct the second attempt of auction
(h) In case the State Government decides to conduct the second attempt of
auction as per clause (ii) of sub-clause (g) above, the terms and
conditions of the second attempt of auction shall remain the same as in
the first annulled attempt of auction subject to the conditions that:
i. the highest initial price offer of the technically qualified bidders
if any in the first annulled attempt shall be the reserve price in
first round of the second attempt; and
ii. the bidding shall continue to the second round even in case the
number of technically qualified bidders is less than three.
B. Second round of e-auction
Where the total number of Technically Qualified Bidders is three or more,
then the auction process shall proceed to second round of auction which shall
be held in the following manner, namely:
(a) In the second round, the Qualified Bidders may submit their final
price offers which shall be a percentage of Value of Mineral
Despatched (the “Final Price Offer”) and be greater than the
Floor Price. The Final Price Offer may be revised till the
conclusion of the e-auction in accordance with the technical
specifications of the e-auction platform as specified in Schedule
III (Technical details regarding online electronic auction)
(b) The e-auction process shall be annulled if none of the Qualified
Bidders submits a Final Price Offer on the online electronic
auction platform. In case the e-auction process is annulled due to
non-submission of at least one Final Price Offer on the electronic
auction platform, the Bid Security of all such Qualified Bidders
who have submitted the highest initial price offer i.e. the
applicable Floor Price for the second round of e-auction, shall be
forfeited in accordance with Clause 14.6.
(c) The Qualified Bidder who submits the highest Final Price Offer
shall be declared as the “Preferred Bidder” immediately on
conclusion of the e-auction.
8.2. The mining lease shall be for minerals found in the area pursuant to exploration prior
to the e-auction:
Provided that where, subsequent to the e-auction, any new mineral is discovered, then
the holder of mining lease shall follow the provisions of the Act and the rules made
thereunder‟ for inclusion of such new mineral in the Mining Lease Deed. It is
clarified that:
i. Where, subsequent to grant of a mining lease, one or more new major minerals
are discovered, the percentage of value of mineral despatched as quoted by the
Successful Bidder under sub-rule (3) of rule (8) of Auction Rules read with the
terms hereof shall be applicable for the purpose of payment to the State
Government in respect of each such mineral.
ii. Where, subsequent to the grant of mining lease, the presence of a minor
mineral(s) is established or discovered, treatment of such minor mineral(s) will be
as per the provisions of the Odisha Minor Mineral Concession Rules, 2016 (as
amended or replaced from time to time) prevailing at the when the minor mineral
is discovered in the concession area.
8.3. Special provisions relating to minerals specified in Part B of the First Schedule to the
Act and as per Rule 21 of the Rules:
‘Rule 21 (1)
(a) if the holder of a composite licence or mining lease discovers any mineral
specified in Part B of the First Schedule to the Act and not specified in such
licence or lease, in the area granted under such licence or lease, the
discovery of such mineral shall be reported to the Director, Atomic Minerals
Directorate for Exploration and Research, Hyderabad within sixty days from
the date of discovery of such mineral;
(b) the licencee or lessee shall not, win or dispose of any mineral specified in
Part B of the First Schedule to the Act unless such mineral is included in the
licence or lease or a separate licence or lease for the purpose has been
obtained;
(c) the quantities of any mineral specified in Part B of the First Schedule to the
Act recovered incidental to such mining operations to be undertaken
pursuant to this Tender Document and related mining lease shall be collected
and stacked separately and a report to that effect shall be sent to the
Director, Atomic Minerals Directorate for Exploration and Research,
Hyderabad every month for such further action by the lessee of the mining
lease issued in terms hereof, as may be directed by the Atomic Minerals
Directorate for Exploration and Research.
(2) the licencee or lessee referred to in sub-rule (1) shall, within sixty days from
the date of discovery of any mineral specified in Part B of the First Schedule
to the Act, apply to the Secretary, Department of Atomic Energy, Mumbai,
through the State Government, for grant of a licence to handle such minerals
under the provisions of the Atomic Energy Act, 1962 (33 of 1962) and the
rules made thereunder and the Department of Atomic Energy shall intimate
to the State Government regarding issue of the licence in this regard.‟
9. Reserve Price
9.1. The Reserve Price is 15% (fifteen percent) of Value of Mineral Despatched for
Kalimati Manganese Block and Unchabali Iron Ore and Manganese Block. The
Reserve Price is 25% (twenty five percent) of Value of Mineral Despatched for
Purheibahal Iron Ore Block, Chandiposhi Iron Ore Block, Rengalaberha North-East
Iron Ore Block, Netrabandha Pahar (West) Iron Ore Block and Dholtapahar Iron Ore
Block. The Reserve Price is 35% (thirty five percent) of Value of Mineral Despatched
for Gandhalpada Iron Ore Block and Jumka Pathriposhi Iron Ore Block. The “Value
of Mineral Despatched” shall be an amount equal to the product of-
(i) mineral despatched in a month; and
(ii) sale price of the mineral (grade-wise and State-wise) as published by
Indian Bureau of Mines for such month of despatch.
9.2. It is clarified that payment in accordance with the Final Price Offer shall be required
to be paid monthly in addition to the payment of royalty or dead rent, as applicable.
(b) payment of the second instalment of the Upfront Payment which is INR
[amount in figures] (Rupees [amount in words]);
Agreement, and upon such payment the State Government shall grant a mining lease
to the successful bidder. Upon such payment the State Government shall grant a
mining lease to the Successful Bidder within a period of 30 days from the date of
payment. The date of the commencement of the period for which a mining lease is
granted shall be the date on which a duly executed mining lease deed is registered.
Provided that no mining lease deed shall be executed on expiry of a period of three
years from the date of the issuance of the letter of intent for mining lease, and the
letter of intent for mining lease shall be invalidated leading to annulment of the entire
auction process:
Provided further that the State Government may allow a further period of two years
for execution of the mining lease deed if the reasons for delay were beyond the
control of the Preferred Bidder.
11. Timetable
The following timetable shall apply to the tender process. The timetable may be amended by
the State Government through issuance of an addendum or a corrigendum to the Tender
Document.
Note:
• The timeline shown above is based on calendar days
• Due dates will be updated if any holidays are announced by government in the
intervening period
• The State Government reserves the right to update/ change or modify any of the above
dates
*In case the bidder gets an extension from the State Government, the date will be deemed to
be extended for the duration of such extension.
13.1.2. The Technical Bid shall be submitted on the electronic platform and the duly
executed original physical copies must be hand delivered to the Joint
Director or the Designated Officer of Government of Odisha for this specific
purpose in an envelope with “Technical Bid for Block _______” clearly
written on it to the following address so that they are received on or prior to
the Bid Due Date, failing which the Technical Bid shall be deemed to be not
received.
Director of Mines,
Office of Directorate of Mines,
Heads of Department Building
Location - Unit - V,
Bhubaneswar, Odisha – 751001
13.2. Language
The Bid and all communications in relation to or concerning the Tender Document
and the Bid are required to be in the English language.
13.7.1. The State Government reserves the right to verify all statements, information
and documents submitted by the Bidder in response to the Tender Document
and the Bidder shall, when so required by the State Government, make
available all such information, evidence and documents as may be necessary
for such verification. Any such verification or lack of such verification by the
State Government shall not relieve the Bidder of its obligations or liabilities
hereunder nor will it affect any rights of the State Government thereunder.
13.7.2. The State Government reserves the right to reject any bid, and appropriate the
entire Bid Security or Performance Security, as may be applicable, if:
(a) at any time, a misrepresentation is made or uncovered,
(b) if the Bidder/Preferred Bidder/Successful Bidder engages in a
Corrupt Practice, Fraudulent Practice, Coercive Practice, Undesirable
Practice or Restrictive Practice
(c) the Bidder does not provide, within the time specified by the State
Government, the supplemental information sought by the State
Government for evaluation of the bid, or
(d) any act or omission of the Bidder/Preferred Bidder/Successful Bidder
results in violation of or non-compliance with the Act, the rules
thereunder, this Tender Document, or any other document referred
therein or issued pursuant thereto or any Applicable Law relevant for
the tender process.
13.7.3. Any rejection of a bid under Clause 13.7.2 may lead to the disqualification of
the Bidder from bidding for any auction or allotment conducted by the State
Government for a period of 5 years starting from the date of appropriation of
the Bid Security or any other earlier date specified by the State Government.
13.7.4. In the aforementioned events, the State Government shall be entitled to forfeit
and appropriate the Bid Security or Performance Security, as the case may be,
without prejudice to any other right or remedy that may be available to the
State Government under the Tender Document, or otherwise, without any
liability whatsoever.
13.8.1. At any time prior to the Bid Due Date, the State Government may, for any
reason, whether at its own initiative or in response to clarifications requested
by a Bidder, amend the Tender Document.
13.8.2. Any amendment issued hereunder will be in writing and shall be accessible to
all the Bidders and shall be deemed to be part of the Tender Document.
13.8.3. In order to afford the Bidders a reasonable time for taking an amendment into
account, or for any other reason, the State Government may, in its sole
discretion, extend the Bid Due Date in accordance with Clause 13.9.
13.9.2. The State Government may, in its sole discretion, extend the Bid Due Date by
issuing an amendment that is made available to all Bidders.
13.10.1.The Bidder may modify, substitute or withdraw its Technical Bid after
submission, prior to the Bid Due Date. No Technical Bid shall be modified,
substituted or withdrawn by the Bidder after the scheduled closing time for
Bid submission on the Bid Due Date, unless the same has been expressly
sought by the State Government.
13.11.3.The State Government reserves the right not to proceed with the tender
process at any time, without notice or liability, and to reject any bid without
assigning any reasons.
(a) bids have not been submitted with all the information and details
listed in this Tender Document.
(b) bid is not conforming to the terms of Clause 8.1A(b) of this Tender
Document.
(c) bids have been submitted without Bid Security or period of validity.
(d) bids have otherwise not been submitted in accordance with the
Tender Document.
The initial price offer must be valid for a period of not less than 180 (one hundred and
eighty) days from the Bid Due Date. If the second round of e-auction is not conducted
within a period of 180 days from the Bid Due Date, then the e-auction process will be
annulled.
All the aforementioned documents are required to be uploaded on the electronic auction
platform and the original physical copy must be despatched in accordance with Clause 13.1.2
so that they are received on or prior to the Bid Due Date, failing which the Technical Bid
shall be deemed to be not received.
Specific instructions for submission of each of the aforementioned documents are provide
below in each part.
(a) The bid letter must be printed on the letterhead of the Bidder, if the Bidder is a
company, partnership firm or other association of individuals. In case the Bidder is an
individual/sole proprietorship, it may be printed on plain paper.
(b) The bid letter must be signed on each page for and on behalf of the Bidder by the
Authorised Signatory of the Bidder on each page, in case the Bidder is a
company/partnership firm. In case the Bidder is an individual/sole proprietorship, the
Bidder must personally sign each page of the bid letter.
(c) It is recommended that the Bidder may authorise one person to deal with all matters
related to bid. However, if the Bidder has authorised more than one person, then the
corporate authorisation of all such persons should be enclosed. If the Bidder has
authorised a person other than the Authorised Signatory for usage of the digital
signature on behalf of the Bidder, then the duly certified copy of the corporate
authorisation such as board resolution in case of a company or authority letter (signed
by all the partners) in case of a partnership firm in respect of such other person should
be enclosed. Any change in such corporate authorisation must be immediately
intimated to the State Government.
(d) Documents to evidence compliance with the eligibility conditions must be enclosed
with the bid letter, duly certified by the Authorised Signatory Such documents must
include:
(i) Certificate of registration/ incorporation of the Bidder which is a company,
sole proprietorship, or partnership firm, and copy of passport(s) of the
individual, sole proprietor or partners, as the case may be, in case Bidder is an
individual, sole proprietor or partnership firm.
(ii) In case the Bidder is a partnership firm or association of individuals, the
constituent documents along with particulars of all the members of the
partnership firm or association of individuals. Each member of the
partnership firm or association of individuals would be required to comply
with the requirements prescribed in the Tender Documents with respect to
submission of documents.
(iii) Net worth certificate issued by: (a) In case of a company. statutory auditors of
the Bidder (certificate should clearly mention that it has been issued by the
statutory auditor of the company, and the net worth stated therein is the sum
of the paid up share capital and the free reserves, in terms of Explanation No
2 to the Schedule I of Auction Rules); (b) In case of a partnership firm,
certificate should clearly mention that it has been issued by the chartered
accountant, and the net worth stated therein is equivalent to the sum of the
paid up share capital and the free reserves of a company, in terms of
Explanation No 2 to the Schedule I of Auction Rules); (c) In case of an
individual or sole proprietorship, certificate issued by a chartered accountant
regarding the total amount as closing cash balance including un-encumbered
immovable property, derived as per Clauses 5(b) and 5(c) of the Tender
Document. The certificate shall have a list of all immovable property owned
by the said individual/ sole proprietorship along with its valuation (which
shall have to be certified by the chartered accountant), and an undertaking
from the individual/ sole proprietorship on a stamp paper (as a part of
affidavit) of adequate value stating, inter alia, that the immovable property is
un-encumbered and free from all charges (including, not limited to, lien,
mortgage, and pledge), and that the said individual/ sole proprietorship is the
owner of the immovable property.
Further, for the computation of the Bidder‟s net worth if an individual
includes the properties owned by their sole proprietorship, or a sole
proprietorship of such individual includes the properties owned by the
individual, then either of the following shall be submitted, as applicable:
A. A certificate from the bank in which such sole proprietorship has a
current account certifying that the individual is the proprietor of the
sole proprietorship; or
B. GST registration certificate clearly showing the details of the sole
proprietorship.
(a) The Bid Security must be in form of a bank guarantee for an amount equal to INR
[amount in figures] (Rupees [amount in words]).
(b) The Bid Security may be issued at any place in India by an Acceptable Bank
(Scheduled Bank as listed in the Second Schedule of the Reserve Bank of India Act,
1934, excluding those listed under the headings of Gramin Banks, Urban Co-
operative Banks and State Co-operative Banks) and must be payable at Bhubaneswar,
Odisha.
(c) The Bid Security must have a validity period of not less than 240 (two hundred and
forty) days from the Bid Due Date, exclusive of the Bid Due Date and inclusive of a
claim period of 60 (sixty) days.
(d) The Bid Security must be stamped in accordance with Applicable Law.
(a) The affidavit must be executed in India in accordance with Applicable Law and it
must be in issued in accordance with the constitutional documents of the Bidder after
obtaining all corporate approvals as may be required.
(b) The affidavit must be stamped in accordance with Applicable Law and notarised.
(c) The affidavit must be signed by a person who is in full time employment of the
Bidder and duly authorised to sign the same.
Bid Letter
(On the letter head of the Bidder. Each page of the letter to be signed by the Authorised Signatory)
[date]
To,
Director of Mines,
Office of Directorate of Mines,
Heads of Department Building
Location - Unit - V,
Bhubaneswar, Odisha – 751001
Sub: Bid letter for Block _______ (Insert Name of Bidder and MSTC Registration
number of Bidder)
Dear Sir,
I/ We having examined the Tender Document and understood their contents, hereby submit
my/ our Technical Bid. Capitalised expressions used in this letter have the same meaning as
ascribed thereto in the Tender Document.
6. [For the purposes of Section 6, I/ we/ our members/ partners do not hold any mineral
concession (including a reconnaissance permit, prospecting licence, prospecting
licence-cum-mining lease, and/or mining lease) in the State of Odisha] OR [For the
purposes of Section 6 I/ we/ our members/ partners hold the following mineral
concessions in the State of Odisha:
Provide details of the mineral concessions (including a reconnaissance permit,
prospecting licence, prospecting licence-cum-mining lease, and/or mining lease) held
by the Bidder including any Letter of Intent issued.]
7. [I/ We/ our members/ partners are not simultaneously participating in any other auction
of mineral concession which may result in grant of a mineral concession in the State of
Odisha] OR [I/ We/ our members/ partners are simultaneously participating in
following auction(s) of mineral concession which may result in grant of a mineral
concession in the State of Odisha]:
Provide details of the mineral concessions which may be granted if the Bidder/
members/ partners is successful in another auction.]
8. I/ We hereby acknowledge that if we submit or produce any document and it is
discovered subsequently that such document was false or incorrect then I/ we shall be
liable under the Applicable Law for the time being in force.
9. I/ We shall make available to the State Government any additional information it may
find necessary or require to supplement or to authenticate the Technical Bid
10. I/ We acknowledge the right of the State Government to reject my/ our Technical Bid
and/or the Final Price Offer without assigning any reason or otherwise and hereby
waive, to the fullest extent permitted by Applicable Law, my/ our right to challenge the
same on any account whatsoever.
11. I/ We declare that:
a. I/ We have examined and understood the Act, all rules framed thereunder, the
Tender Document and all documents referred therein including the Information
Memorandum;
b. I/ We have examined and have no reservations to the Tender Document, including
any addendum issued by the State Government;
c. I/ We have not directly or indirectly or through an agent engaged or indulged in any
Corrupt Practice, Fraudulent Practice, Coercive Practice, Undesirable Practice or
Restrictive Practice, as defined in the Tender Document, in respect of any tender or
request for proposal issued by or any agreement entered into with the State
Government or any other public sector enterprise or any government, central or
state; and
d. I/ We hereby certify that we have taken steps to ensure that in conformity with the
provisions of Clause 15 of the Tender Document, no person acting for me/ us or on
my/ our behalf has engaged or will engage in any Corrupt Practice, Fraudulent
Practice, Coercive Practice, Undesirable Practice or Restrictive Practice.
e. I/We have not been convicted of illegal mining.
f. No mining dues or outstanding payments are pending with any State Government
for a period more than 60 days after the due date.
g. There are no pending or threatened litigations or legal or quasi-legal proceedings
against me/ us which may impact my/ our ability to perform my/ our obligations
under the Tender Document, the letter of intent, the MDPA, the mining lease deed,
the Act and/or the Auction Rules
12. I/ We understand that you may cancel the tender process at any time and that you are
neither bound to accept any bid that you may receive nor to invite the Bidders to bid,
without incurring any liability to the Bidders, in accordance with the Tender Document.
13. I/ We hereby irrevocably waive any right or remedy which I/ we may have at any stage
at law or howsoever otherwise arising to challenge or question any decision taken by
the State Government in connection with the selection of the Preferred Bidder, or in
connection with the tender process itself, in respect of the Tender Document and the
terms and implementation thereof.
14. In the event of I/ we being declared as the Successful Bidder, I/ we agree to enter into
MDPA and other documents in accordance with the Tender Document and pay such
amounts and provide such security as required therein
15. I/ We have ensured compliance with the Tender Document and to the best of my/ our
knowledge this bid is conforming to the terms thereof.
16. I/ We agree and understand that the Bid is subject to the provisions of the Tender
Document. In no case, I/ we shall have any claim or right of whatsoever nature if the
mining lease is not awarded to me/ us or my/ our bid is not opened or rejected.
17. The initial price offer has been and the Final Price Offer shall be quoted by me/ us after
taking into consideration all the terms and conditions stated in the Tender Document,
MDPA, my/ our own estimates of costs and feasibility and after a careful assessment of
the geological and other information, the Information Memorandum and the proposed
mining lease and all the conditions that may affect the utilisation of minerals.
18. I/ We shall keep this offer valid for 180 days from the Bid Due Date specified in the
Tender Document.
In witness thereof, I/ we submit this bid letter forming part of my/ our Technical Bid under
and in accordance with the terms of the Tender Document.
Yours faithfully,
For and on behalf of [insert name of the Bidder]
Enclosed:
(a) [list and description of documents enclosed]
To,
Director of Mines,
Office of Directorate of Mines,
Heads of Department Building
Location - Unit - V,
Bhubaneswar, Odisha – 751001
1. In consideration of you, being the State Government of Odisha (“State Government”, which
expression shall unless it be repugnant to the subject or context thereof include its, successors and
assigns) having agreed to receive, pursuant to the provisions of the Tender Document dated
October 18, 2019, the bid of [Name of the Bidder] (a company registered under the Companies
Act, [1956/2013]) and having its registered office at [Address of the Bidder] OR [an individual/
sole proprietorship who is citizen of India, having income tax permanent account number
[number], residing at [address]] OR [partnership firm/association of individuals], all of whom are
Indian citizens and resident in India] (“Bidder”), for the e-auction pursuant to the Tender
Document for the Block _______ (“Mineral Block”) dated October 18, 2019 ( “Tender
Document”), we [Name of the Bank] having our registered office at [address of the registered
office] and one of its branches located at Bhubaneswar, Odisha [name and address of the branch]
(“Bank”), at the request of the Bidder, do hereby in terms of the Tender Document, irrevocably,
unconditionally and without reservations guarantee the due and faithful fulfilment and compliance
of the terms and conditions of the Tender Document by the Bidder and unconditionally and
irrevocably undertake to pay forthwith to the State Government an amount of INR [amount in
figures] (Rupees [amount in words]) (“Guarantee”) as our primary obligation without any
demur, reservation, recourse, contest or protest and without reference to the Bidder, if the Bidder
shall fail to fulfil or comply with all or any of the terms and conditions contained in the Tender
Document.
2. Any such written demand made by the State Government stating that the Bidder is in default of
the due and faithful fulfilment and compliance with the terms and conditions contained in the
Tender Document shall be final, conclusive and binding on the Bank.
3. We, the Bank, do hereby unconditionally undertake to pay the amounts due and payable under
this Guarantee without any demur, reservation, recourse, contest or protest and without any
reference to the Bidder or any other person and irrespective of whether the claim of the State
Government is disputed by the Bidder or not, merely on the first demand from the State
Government stating that the amount claimed is due to the State Government by reason of failure
of the Bidder to fulfil and comply with the terms and conditions contained in the Tender
Document. Any such demand made on the Bank shall be conclusive as regards amount due and
payable by the Bank under this Guarantee. However, our liability under this Guarantee shall be
restricted to an amount not exceeding INR [amount in figures] (Rupees [amount in words]).
4. This Guarantee shall be irrevocable and remain in full force for a period of 240 days from the Bid
Due Date i.e. [Insert Date] inclusive of a claim period of 60 days or for such extended period as
may be mutually agreed between the State Government and the Bidder, and agreed to by the
Bank, and shall continue to be enforceable till all amounts under this Guarantee have been paid.
5. We, the Bank, further agree that the State Government shall be the sole judge to decide as to
whether the Bidder is in default of due and faithful fulfilment and compliance with the terms and
conditions contained in the Tender Document including, amongst others, the failure of the Bidder
to keep its bid open during the bid validity period set forth in the Tender Document, and the
decision of the State Government that the Bidder is in default as aforesaid shall be final and
binding on us, notwithstanding any differences between the State Government and the Bidder or
any dispute pending before any court, tribunal, arbitrator or any other authority.
6. The Guarantee shall not be affected by any change in the constitution or winding up of the Bidder
or the Bank or any absorption, merger or amalgamation of the Bidder or the Bank with any other
person.
7. In order to give full effect to this Guarantee, the State Government shall be entitled to treat the
Bank as the principal debtor. The State Government shall have the fullest liberty without affecting
in any way the liability of the Bank under this Guarantee from time to time to vary any of the
terms and conditions contained in the Tender Document or to extend time for fulfilment and
compliance with all or any of the terms and conditions contained in the Tender Document by the
said Bidder or to postpone for any time and from time to time any of the powers exercisable by it
against the said Bidder and either to enforce or forbear from enforcing any of the terms and
conditions contained in the Tender Document or the securities available to the State Government,
and the Bank shall not be released from its liability under these presents by any exercise by the
State Government of the liberty with reference to the matters aforesaid or by reason of time being
given to the said Bidder or any other forbearance, act or omission on the part of the State
Government or any indulgence by the State Government to the said Bidder or by any change in
the constitution of the State Government or its absorption, merger or amalgamation with any other
person or governmental department or instrumentality, but for this provision, have the effect of
releasing the Bank from its such liability.
8. Any notice by way of request, demand or otherwise hereunder shall be sufficiently given or made
if addressed to the Bank and sent by courier or by registered mail to the Bank at the address set
forth herein.
9. We undertake to make the payment on receipt of your notice of claim on us addressed to [name of
Bank along with branch address at Bhubaneswar, Odisha] and delivered at our above branch
which shall be deemed to have been duly authorised to receive the said notice of claim.
10. It shall not be necessary for the State Government to proceed against the said Bidder before
proceeding against the Bank and the guarantee herein contained shall be enforceable against the
Bank, notwithstanding any other security which the State Government may have obtained from
the said Bidder or any other person and which shall, at the time when proceedings are taken
against the Bank hereunder, be outstanding or unrealised.
11. We, the Bank, further undertake not to revoke this Guarantee during its currency except with the
previous express consent of the State Government in writing.
12. The Bank declares that it has power to issue this Guarantee and discharge the obligations
contemplated herein, the undersigned is duly authorised and has full power to execute this
Guarantee for and on behalf of the Bank.
13. Notwithstanding anything contained herein,
a. the liability of the Bank under this Guarantee shall not exceed the Guarantee amount i.e.
INR [amount in figures] (Rupees [amount in words]).
b. This Guarantee shall be valid up to [insert date].
c. This Guarantee shall be payable at [Bhubaneswar], [address of branch of the bank at
Bhubaneswar, Odisha].
Signed and Delivered by ………………………. Bank
Know all men by these presents, I/ We, [name and address of the Bidder] do hereby irrevocably
constitute, nominate, appoint and authorise [Name], son/daughter/wife of [name of father/husband]
and presently residing at [address], who is presently employed with me/ us and holding the position of
[designation], as my/ our true and lawful attorney ( “Attorney”) to do in my/ our name and on my/
our behalf, all such acts, deeds and things as are necessary or required in connection with or incidental
to submission of our bid for the Block _______ (“Mineral Block”) in response to the Tender
Document, dated October 18, 2019 issued by State Government of Odisha (“State Government”)
including but not limited to signing and submission of all applications, affidavits, bids and other
documents and writings, participate in Bidders‟ and other conferences and providing information /
responses to the State Government, representing me/ us in all matters before the State Government,
and generally dealing with the State Government in all matters in connection with or relating to or
arising out of our bid for the Mineral Block and/or upon award thereof to us and/or till the entering
into Mine Development and Production Agreement with the State Government and grant of mining
lease.
AND I/ we hereby agree to ratify and confirm and do hereby ratify and confirm all acts, deeds and
things done or caused to be done by my/ our Attorney pursuant to and in exercise of the powers
conferred by this power of attorney and that all acts, deeds and things done by my/ our said Attorney
in exercise of the powers hereby conferred shall and shall always be deemed to have been done by
me/ us.
In witness whereof I/ we, [name of Bidder], the above named principal have executed this power of
attorney on this [Date] day of [Month], 20[Year]
For……………………………..
Witnesses:
1.
2.
[particulars of notarisation]
Accepted
[particulars of authorized person]
(To be duly executed and adequate stamp duty to be paid by the Bidder with respect to this
document.)
Affidavit
1. I am the [designation of the deponent] of the Bidder. I am conversant with the facts and
circumstances surrounding the subject of this affidavit [and have been authorised to depose to
the same pursuant to the power of attorney dated [date] issued pursuant to [particulars of
corporate approval]]. I am filing this affidavit to place on record verification of facts and
documents in connection with the tender process concerning Block _______.
2. [Insert separate paragraphs for each information/ document brought on record on the website
of the e-auction platform or physically submitted with the State Government, in a
chronological sequence].
3. [If applicable, also insert separate paragraphs for particulars of mineral concessions
(including a reconnaissance permit, prospecting licence, prospecting licence-cum-mining
lease, and/or mining lease) held by the Bidder or for which the Bidder would be participating
in auction process being conducted simultaneously].
4. [In case of an individual, sole proprietorship, association of individuals, or a partnership firm,
insert a separate paragraph to the effect that such individual/s or sole proprietor or each of the
partners, as the case may be, is a citizen of India.]
5. [In case of an individual or a sole proprietorship, insert a separate paragraph to the effect that
the immovable property included for calculation of net worth is un-encumbered and free from
all charges (including, but not limited to, lien, mortgage, and pledge), and that the individual/
sole proprietorship is the owner of the said immovable property.]
6. That nothing has been concealed in the information submitted as mentioned above.
(Signature)
Name, Designation & Address
VERIFICATION
I, [name], [the [designation of the deponent] of] the Bidder above named, having my office at
[address], do hereby solemnly declare that what is stated above is on the basis of the books and
records of the Bidders, and verify that the contents of the above affidavit are true and correct, no part
of it is false and nothing material has been concealed therefrom.
S. No. Document Clause No. and Clarification Suggested Text for Rationale for
Existing Required Amendment, if any Clarification or
Provision Amendment
The above data is to be provided in .doc, .docx, .xls, .xlsx format only.
In order to submit online bids in the e-bidding process for Mining Lease, a bidder needs to
register itself with the e-auction website of MSTC Limited, A Government of India
Enterprise. For this the bidder should visit the website at
https://www.mstcecommerce.com/auctionhome/mlcl/index.jsp and click on the button
“Registration”. Bidders already registered with the said website need not register again.
On the next page, there are two options – Register as Buyer and Register as Seller. The bidder
shall have to click on the link “Register as Buyer” to proceed.
An online Registration Form will appear on screen and the bidder has to fill up the same with
correct information. During this process, the bidder shall create his user id and password and
keep note of the same. The bidder shall ensure that the secrecy of his user id and password is
maintained at all time and he/she shall alone be responsible for any misuse of the user id and
password.
After filling up the online form, the bidder should tick both the check boxes for accepting the
General Terms 'n' Conditions of e-Auction and Buyer Specific Terms 'n' Conditions of e-
Auction. The bidder may click on the respective links to read the General Terms 'n'
Conditions of e-Auction and Buyer Specific Terms 'n' Conditions of e-Auction before
submitting the form.
The bidder may check the details entered by it from the Preview page before final submission.
On successful submission of the online registration Form, the bidder shall receive a
confirmation mail in the registered email address advising the bidder to submit the following
documents:
i. Self-attested Income Tax PAN Card. In case of a registered Company or Firm, the Firm's
PAN card and in case of a proprietorship firm, proprietor‟s personal PAN card is
required. In case of partnership firm, PAN of the firm and that of the authorized partner
are to be submitted.
ii. Photocopy of Latest Income Tax Return.
iii. Photocopy of GST Registration Certificates
iv. Signature of the Authorized Signatory verified by Bank on Bank's Letter-head. If such
verification is done on Bidder's Letter-head, then the full Address of the Branch of the
Bank must be mentioned.
v. PAN Card of the Authorized Signatory.
vi. A letter addressed to MSTC stating the serial number of the DSC to be used by the bidder
for login and bidding.
vii. Copy of the confirmation email Letter received from MSTC after successful completion
of on-line registration and containing buyer registration details of the Bidder.
viii. A non refundable registration fee of INR 10,000/- plus applicable taxes (INR 11,800/- at
present) to be paid online to the following bank account.
Please provide details of payment made like UTR No, remitting bank name, date of payment
and amount in the covering letter.
Note: In case the documents mentioned in above points ii and iii, are not applicable, the
bidder may submit the declaration signed by the Authorized Signatory stating that document
(s) is not applicable.
The bidder shall have to submit all the above documents to MSTC Limited for verification
and activation of their login ids. The bidders may send scanned copies of the above
documents to the designated email id only which is given below.
mlcl@mstcindia.co.in
The bidder should mention the DSC serial number in the body of the email while forwarding
the above documents.
It may be noted that bidders need not visit any of the offices of MSTC Limited for submission
of the documents. However, the bidders may contact any office of MSTC Limited for seeking
assistance on the login process details of which are available on MSTC website
www.mstcindia.co.in. or you may contact MSTC‟s help desk number "033-22901004” for
assistance in any technical or system related issues.Once the complete set of documents and
requisite registration fee are received from a bidder, MSTC shall activate the bidder‟s login
after verification / scrutiny of the documents. MSTC Limited reserves the right to call for
additional documents from the bidder if needed and the bidder shall be obliged to submit the
same.
On completion of the above stated registration process, a bidder shall be able to login to
MSTC‟s website.
There are two sets of documents available for downloading from the website of e-auction
platform provider.
First set of documents will be available free of cost in public domain and can be downloaded
without registration on e-auction platform provider‟s website. These documents may include
the following:
(a) Blank format of customized model tender document for this particular e-auction
process; and
The above information is being made available to all potential Bidders in order to assist them
in familiarizing about the tender process and the mineral block on e-auction.
Subsequent to Bidder registration process with MSTC, certain other detailed documents
(Particular Tender Document of the mineral block including Information Memorandum
containing geological report and other information) shall be made available for download to
the Bidder only subsequent to payment of a tender fee of INR 2,00,000 (Rupees Two Lakh)
for Kalimati Manganese Block and INR 5,00,000 (Rupees Five Lakh) for all other mineral
blocks.
The Tender Document shall be sold in online mode only through website of MSTC. Bidders
shall login with its user id and password. Bidder shall have the facility to make payment
towards the cost of tender document through RTGS or net banking provided under the login
of the Bidder. The Bidder after login shall click on the link for e-payment and then select the
event number from the drop down menu for which it intends to make the payment. The bidder
should enter the appropriate amount towards cost of the paid document and select either
RTGS or net banking and click on submit. The bidder should fill an online RTGS application
form and take a printout of the same before proceeding to transfer the fund to the beneficiary
account. In case the Bidder has an online banking facility, it can make this payment online as
well. After transferring the fund, the bidder shall be required to communicate the UTR No
and other details to MSTC through email at the following email addresses.
The bidder shall send the email regarding the payment details to the email address
corresponding to the office of MSTC which is conducting the event.
Once MSTC receives the payment in the designated account and the required information
from the bidder, it shall activate the link for downloading of the paid documents for the
respective mineral Block(s).
The bidder may note that the files containing information about the mineral blocks can be in
various formats like doc, xls, ppt, pdf, jpg, jpeg, zip etc. and it shall be the responsibility of
the Bidder to have suitable facilities at its end to download these documents from the website
of MSTC.
The complete process of bid submission will be divided into 2 stages as follows:
This stage will comprise (i) online submission of the Technical Bid and the initial
price offer; and (ii) offline submission of certain original documents as detailed
below.
(i) Online submission of Technical Bid and initial price offer with supporting
documents
This stage shall be open to all Bidders who have purchased the Tender Document(s)
for the specific mineral block(s).
In this process, the Bidder, after logging in to the above stated website, will have to
click on the link “click for Auction”. In the next page, the Bidder shall have to go to
the link “Stage 1 Technical cum IPO Submission”. Thereafter, the bidder will have a
bouquet under “My Menu” having 3 (three) sub-menus – “Bid Floor Manager”,
“Upload Documents” and “Attach Documents”.
Once the Bidder clicks on this sub-menu and then clicks on the menu “Live
Auctions” on the next page, it will display a list of mine(s) for which the bidder has
paid the tender document fees. On clicking on any of these mine(s), the Bidder will
be directed to a screen where it can fill up the technical bid template and save the
data. The Bidder can edit such data as many times as it wishes.
After saving the Technical Bid, the link / button for Initial Price Offer shall get
activated. The Bidder, on clicking this button, will be directed to a screen having a
template where it can fill up its Initial Price Offer and click on the Final Submission
button. The final submission shall be digitally signed by the Bidder using its
registered digital signature. Any digital signature certificate other than the registered
one shall not be acceptable for bid submission by the system.
The bidder may note that the “Initial Price Offer” button will be activated only after
the Technical Bid has been saved.
Upload Documents
The Bidder shall also have to upload the supporting documents along with the
Technical Bid, as required under the Tender Document. These supporting documents
will need to be uploaded in pdf format only (the file size should be limited to 4 MB;
in case of larger files, they may be split into multiple files with suitable
nomenclature). Files in formats other than pdf shall not be accepted. For this, the
bidder shall first click on the link “Upload documents” and upload the files in support
of its Technical Bid.
Attach Documents
After uploading these documents, the bidder shall have to attach them with the
specific tender for the concerned mine for which it is intending to submit the
Technical Bid. It may be noted by the Bidder that in case it intends to use the same
supporting document for more than one mine, it does not need to upload the same
document every time. The supporting document, once uploaded, can be attached with
The bidder should note that only a file which is “attached” with a specific mine(s)
shall be considered during evaluation of the Technical Bid. Files which are not
attached to any mine(s) shall not be considered for evaluation.
The Bidder should also note that a Bid will be considered as submitted if and only
if the Bidder has submitted the Initial Price Offer. Only such Bids will be opened
for which Initial Price Offer has been submitted. It is further clarified that saving
of Technical Bid without saving of the Initial Price Offer will be treated as non-
submission of bid.
Upon successful submission of Initial Price Offer, the Bidder shall receive a bid
acknowledgement from the system automatically.
The Bidders may note that the Technical Bid and the Initial Price Offer submitted
online as above will be encrypted by the MSTC‟s own software before storage in the
database. This will be done to protect the sanctity and confidentiality of the Bids
before the actual opening of the same.
The Bidder has an option to edit Technical Bid and initial price offer as many times
as it wishes till the final submission.
If after submission of Initial Price Offer and before the scheduled closing time for Bid
submission a Bidder wishes to make changes in its Bid, it can do so by clicking the
“Delete Bid” option. By doing so, the entire Bid submitted by the Bidder will get
deleted. A system generated email will be sent to the Bidder acknowledging the
deletion. The Bidder will be able to save and submit its new Bid again. If a Bidder
deletes its Bid and does not submit its new Bid in the same manner as stated above,
its Bid will not come up for opening or further processing.
If after final submission of Bid and before the scheduled closing time for Bid
submission a Bidder wishes to withdraw its bid, it can do so by clicking the
“Withdraw Bid” option. By withdrawing a bid, a Bidder will lose the opportunity to
re-submit its Bid against the same mine(s).
The bidders shall submit the following documents in original in sealed cover
within the scheduled closing time for bid on the Bid Due Date. The sealed
cover should clearly bear the following identification: Original Documents
(Technical Bid) for Mineral Block and shall indicate the name and address of
the Bidder. In addition, the documents shall contain page numbers: Page [●]
of [●]
of Schedule I ;
The aforementioned documents shall be hand delivered to the Joint Director or the
Designated Officer of Government of Odisha for this specific purpose at the
following address:
Director of Mines,
Office of Directorate of Mines,
Heads of Department Building
Location - Unit - V,
Bhubaneswar, Odisha – 751001
Deadline for online submission of (i) Technical Bid and the initial price offer with
supporting documents; and (ii) offline submission of certain original documents
The bidders shall also note that online submission of Technical Bid and the initial
price offer with supporting documents and offline submission of certain original
documents shall be allowed only up to time and date as per Bid Due Date specified in
Clause 11. Bidders in their own interest are advised to complete the entire process
well in advance to avoid any last minute hiccup / technical problems. No complaints
shall be entertained in this regard at any stage.
Initial price offer shall be opened one day before the scheduled date of e-
auction of the respective mineral block.
For example, initial price offers for mineral block(s) scheduled for e-
auction on 02.01.20xx will be opened on 01.01.20xx. All Technically
Qualified Bidders will be ranked in accordance with Clause 8.1A(e) The
Qualified Bidders as per top 50% ranking principle (subject to minimum
criteria as specified in the Tender Document) will be intimated by an
email by the State Government from the designated email id of the State
Along with the above intimation, the Bidder shall also receive information regarding
applicable Floor Price for second round of e-auction of the mineral block which is the
highest initial price offer received from the Technically Qualified Bidders.
It is expressly clarified that Bidders should not expect to receive the information on
the second highest IPO received from the Technically Qualified Bidders as a matter
of usual course.
It shall be the sole responsibility of the Bidder to regularly check the MSTC website
and log in to see whether it has qualified for a certain mineral block or not. MSTC
will not be responsible for non-receipt of email by the Bidder and its consequences.
b. Conduct of e-auction
E-auction is the process of inviting binding Final Price Offer(s) from Qualified
Bidders through internet for the purpose of determination of the Preferred Bidder.
During this process, the Qualified Bidder will be able to submit its Final Price Offer
as many times as it wishes against the same mineral block. The Qualified Bidder will
remain anonymous to other Qualified Bidders participating in the electronic auction
process as well as to MSTC / State Government. The Qualified Bidder will be able to
see the prevailing highest Final Price Offer against the mineral block, but the name of
the highest Qualified Bidder at any point of time will not be displayed. The Qualified
Bidder shall have to put its Final Price Offer over and above the displayed highest bid
by a minimum increment of 0.05% to become the highest Qualified -Bidder. The
electronic auction process will have a scheduled start and close time which will be
displayed on screen. A Qualified Bidder will be able to put its Final Price Offer after
the start of bid time and till the close time of electronic auction. The current server
time (IST) will also be displayed on the screen. In the event a Final Price Offer is
received during the last 8 (Eight) minutes before the scheduled close time of
electronic auction, the close time of electronic auction will be automatically extended
by 8 (Eight) minutes from the last received bid time to give equal opportunity to all
other Qualified Bidders. This process of auto extension will continue till no Final
Price Offer is received during a period of 8 (Eight) minutes.
For example, assuming that the initial scheduled close time for a particular electronic
auction is 1:00 pm and a Final Price Offer is received at 12:55 pm, the scheduled
close time shall be revised to 1:03 pm. Again if a Final Price Offer is received at 1:01
pm, the scheduled close time shall be revised to 1:09 pm and so on. In the event that
no further Final Price Offer is received till 1:09 pm, the electronic auction will close
at 1:09 pm. The revised close time will be displayed on screen and the Qualified
Bidders are advised to keep refreshing its webpage to get the latest information.
The above example is only illustrative and meant for explaining the e-auction process
only.
During the process of electronic auction, the Bidder shall be required to sign their
bids with their respective digital signature certificate (DSC) and the use of which has
been duly authorised on behalf of the Bidder and which was used at the time of
registration. Any digital signature certificate other than the above shall not be
acceptable for bid submission by the system
Bidders may use „Bidder‟s Guide‟ link available on login page for the detailed
procedure. Bidders in their own interest are advised to get themselves acquainted with
the electronic auction process of auction platform provider by getting their
Authorised Representative trained beforehand through some demo electronic auctions
as per Clause 11.
The bidder may note that only one user id will be mapped with a given DSC for the
Authorized Signatory. DSC once mapped with a particular user id of a bidder will
normally not be changed and therefore Bidders are advised to carefully select the
DSC.
The Digital Signature Certificate will be used to digitally sign the Bids that the
Bidder will submit online.
It will be the sole responsibility of the Bidder and its respective Authorized Signatory
to maintain the secrecy of the password for the Digital Signature Certificate. The
Bidder and its Authorized Signatory shall be solely responsible for any misuse of the
DSC and no complain / representation in this regard shall be entertained at any stage
by MSTC/State Government.
Tools =>Internet Options =>Security =>Custom Level =>Enable all Active-X Controls
Tools => Internet Options => General => Click On Settings under “browsing history/
Delete Browsing History” => Temporary Internet Files => Activate “Every time I
Visit the Webpage”.
CONTENTS
PARTIES: ................................................................................................................................................... 58
BACKGROUND: ....................................................................................................................................... 58
1. DEFINITIONS AND INTERPRETATION .................................................................................. 59
1.1. Definitions ........................................................................................................................ 59
1.2. Interpretation..................................................................................................................... 60
2. COMPLIANCE ............................................................................................................................. 63
3. CONDITION FOR GRANT OF MINING LEASE ...................................................................... 64
4. PERFORMANCE SECURITY AND APPROPRIATION ........................................................... 65
4.1. Performance Security ........................................................................................................ 65
4.2. Events for appropriation of the Performance Security...................................................... 65
4.3. Manner of appropriation of the Performance Security ..................................................... 66
5. INFORMATION ........................................................................................................................... 68
6. UTILISATION OF MINERAL ..................................................................................................... 69
7. PAYMENTS .................................................................................................................................. 70
7.1. Payment of bid amount ..................................................................................................... 70
7.2. Other payments ................................................................................................................. 70
8. MINIMUM PRODUCTION REQUIREMENT ............................................................................ 71
9. GENERAL RIGHTS AND OBLIGATIONS ................................................................................ 72
9.1. Limited mining rights ....................................................................................................... 72
9.2. Authorisations ................................................................................................................... 72
9.3. Geological and archaeological finds ................................................................................. 72
10. MINING PLAN AND COMPLIANCE WITH APPLICABLE LAW ......................................... 73
11. REPRESENTATIONS AND WARRANTIES .............................................................................. 74
12. INDEMNITIES .............................................................................................................................. 75
13. ASSIGNMENT, SECURITY FOR FINANCING......................................................................... 77
13.1. Prohibition on Assignment ............................................................................................... 77
13.2. Assignment conditions ...................................................................................................... 77
13.3. Security for financing ....................................................................................................... 77
14. INSURANCE................................................................................................................................. 78
15. ACCOUNTS AND AUDIT ........................................................................................................... 79
15.1. Audited accounts............................................................................................................... 79
15.2. Appointment of auditors ................................................................................................... 79
15.3. Certification of claims by statutory auditors ..................................................................... 79
16. GOVERNMENT INSPECTION ................................................................................................... 80
17. EVENT OF FORCE MAJEURE ................................................................................................... 81
2 [Name of the Successful Bidder] [incorporated in India under the Companies Act,
[1956/2013] with corporate identity number [CIN of the Successful Bidder], whose registered
office is at [address of registered office], India and principal place of business is at [address of
principal place of business, if different from registered office]] OR [an individual / sole
proprietorship [who/ whose sole proprietor] is citizen of India, having income tax permanent
account number [number], residing at [address]] OR [persons listed in SCHEDULE A
organised as a [partnership firm/ association of individuals], all of whom are Indian citizens
and resident in India] (the “Successful Bidder”).
BACKGROUND:
A. An electronic auction was conducted by the State Government pursuant to the Tender
Document (defined hereinafter) for grant of a Mining Lease (defined hereinafter) over the
Lease Area (defined hereinafter) for mining of the Mineral (defined hereinafter).
B. The Successful Bidder quoted [Final Price Offer] per cent as the bid parameter in the
electronic auction and was declared as the Preferred Bidder (as defined in the Tender
Document).
C. As a Preferred Bidder, the Successful Bidder made payment of the first instalment of the
Upfront Payment which is INR [amount in figures] (Rupees [amount in words]) on [date]
through [payment mechanism], upon which the State Government issued a letter of intent
dated [date].
D. The Preferred Bidder completed the conditions specified in Clause 10.2 of the Tender
Document and submitted written confirmation of the same to the State Government through a
letter dated [date], upon which the Preferred Bidder was considered to be the Successful
Bidder by an order of the State Government dated [date].
E. Thereafter, the Successful Bidder obtained all the consents, approvals, permits, no-objections
and the like as required under Applicable Law for commencement of mining operation, as
listed in SCHEDULE B.
F. Accordingly, the State Government is now entering into this Agreement with the Successful
Bidder with respect to matters pertaining to the Mining Lease over the Lease Area and other
matters incidental thereto, and this Agreement shall be read together with the Mining Lease.
NOW THEREFORE, in consideration of the mutual covenants, terms and conditions and
understandings set forth in this Agreement, and other good and valuable consideration (the adequacy
of which are hereby mutually acknowledged), the Parties with the intent to be legally bound hereby
agree as follows:
The definitions and rules of interpretation in this clause apply in this Agreement.
1.1. Definitions
1.1.1. “Agreement” means this Mine Development and Production Agreement and all attached
annexure, schedules, exhibits and instruments supplemental to or amending, modifying or
confirming this Agreement in accordance with the provisions of this Agreement.
1.1.2. “Agreement Date” shall mean the date on which execution of this Agreement by both the
Successful Bidder and the State Government is completed.
1.1.3. “Applicable Law” shall mean all applicable statutes, laws, by-laws, rules, regulations, orders,
ordinances, protocols, codes, guidelines, , notices, directions, judgments, decrees or other
requirements or official directive of any governmental authority or court or other law, rule or
regulation approval from the relevant governmental authority, government resolution,
directive, or other government restriction or any similar form of decision of, or determination
by, or any interpretation or adjudication having the force of law in India at the relevant point
in time.
1.1.4. “Appropriation Event” shall have the meaning given to such expression in Clause 4.2.1.
1.1.5. “Auction Rules” shall mean the Mineral (Auction) Rules, 2015 as amended by Mineral
(Auction) Amendment Rules, 2017 and from time to time
1.1.6. “Claim” shall have the meaning given to such expression in Clause 12.3.
1.1.7. “Commencement Report” shall have the meaning given to such expression in Clause 5.1(b).
1.1.8. “Control” shall include the right to appoint majority of the directors or to control the
management or policy decisions exercisable by a person or persons acting individually or in
concert, directly or indirectly, including by virtue of their shareholding or management rights
or shareholders agreements or voting agreements or in any other manner.
1.1.9. “Eligibility Conditions” shall mean the eligibility conditions specified in the Act and the
Auction Rules including all the eligibility conditions listed in Clause 5 of the Tender
Document.
1.1.10. “Encumbrances” means any mortgage, pledge, equitable interest, assignment by way of
security, conditional sales contract, hypothecation, right of other Persons, claim, security
interest, encumbrance, title defect, title retention agreement, voting trust agreement, interest,
option, lien, charge, commitment, restriction or limitation of any nature whatsoever, including
restriction on use, voting rights, transfer, receipt of income or exercise of any other attribute
of ownership, right of set-off, any arrangement (for the purpose of, or which has the effect of,
granting security), or any other security interest of any kind whatsoever, or any agreement,
whether conditional or otherwise, to create any of the same.
1.1.11. “Event of Force Majeure” shall have the meaning given to such expression in Clause 17.1.
1.1.12. “Final Price Offer” shall mean [per cent of Value of Mineral Despatched], based on which
the Successful Bidder was declared successful in the tender process for the Mineral Block.
The “Value of Mineral Despatched” being an amount equal to the product of,- (i) mineral
despatched in a month; and (ii) sale price of the mineral (grade-wise and State-wise) as
published by Indian Bureau of Mines for such month of despatch.
1.1.13. “Good Industry Practice” means, in relation to any undertaking and any circumstances, the
exercise of that degree of skill, diligence, prudence and foresight which would reasonably and
ordinarily be expected from a skilled and experienced Person engaged in the same type of
undertaking under the same or similar circumstances.
1.1.14. “Governmental Approval” means any authorization, approval, consent, licence or permit
required from any Governmental Authority.
1.1.16. “Indemnified Party” shall have the meaning given to such expression in Clause 12.1.
1.1.17. “Lease Area” shall mean the Lease Area as more particularly described in SCHEDULE C.
1.1.19. “Minimum Production Requirement” shall have the meaning given to such expression in
Clause 8.1.
1.1.20. “Mining Lease” shall have the meaning given to such expression in the Act and the rules
made thereunder.
1.1.21. “Mining Plan” means a mining plan drawn in accordance with clause (b) of sub-section (2)
of Section 5 of the Act.
1.1.22. “Monthly Payment” shall have the meaning given to such expression in Clause 7.1.1.
1.1.23. “Notice” shall have the meaning given to such expression in Clause 19.11.
1.1.24. “Parties” means and refers to the State Government and the Successful Bidder collectively
and “Party” refers to any one of them.
1.1.25. “Performance Security” shall have the meaning given to such expression in Clause 4.1.
1.1.26. “Pre-Commencement Report” shall have the meaning given to such expression in Clause
5.1(a).
1.1.27. “Term” shall have the meaning given to such expression in Clause 18.2.
1.1.28. “Third Party” means any Person that is not a signatory to this Agreement.
1.1.29. “Warranties” shall have the meaning given to such expression in Clause 11.1 read with
Schedule E.
1.2. Interpretation
(i) all subordinate legislation made from time to time under that provision (whether or
not amended, modified, re-enacted or consolidated); and
(ii) such provision as from time to time amended, modified, re-enacted or consolidated
(whether before or after the date of this Agreement) to the extent such amendment,
modification, re-enactment or consolidation applies or is capable of applying to any
transactions entered into under this Agreement prior to the Agreement Date and (to
the extent liability thereunder may exist or can arise) shall include any past statutory
provision (as from time to time amended, modified, re-enacted or consolidated)
which the provision referred to has directly or indirectly replaced.
1.2.2. Unless the context otherwise requires, words in the singular shall include the plural and the
plural shall include the singular.
1.2.3. References to the masculine, the feminine and the neuter shall include each other.
1.2.4. References to a “company” shall include a company, corporation or other body corporate,
wherever and however incorporated or established.
1.2.5. The recitals and schedules form part of this Agreement and shall have the same force and
effect as if expressly set out in the body of this Agreement, and any reference to this
Agreement shall include any recitals and schedules to it. Any references to clauses and
schedules are to clauses and schedules to this Agreement. Any references to parts or
paragraphs are, unless otherwise stated, references to parts or paragraphs of the schedule in
which the reference appears.
1.2.6. A reference to this Agreement or any other document shall be construed as references to
this Agreement or that other document as amended, varied, novated, supplemented or
replaced from time to time.
1.2.7. A reference to this Clause shall, unless followed by reference to a specific provision, be
deemed to refer to the whole Clause (not merely the sub-Clause, paragraph or other provision)
in which the expression occurs.
1.2.8. A reference to a party shall include that party‟s representatives, permitted successors and
permitted assigns.
1.2.9. Each of the representations and warranties provided in this Agreement is independent of other
representations and warranties and unless the contrary is expressly stated, no Clause in this
Agreement limits the extent or application of another Clause.
1.2.10. Headings to Clauses, parts and paragraphs of schedules and schedules are for convenience
only and do not affect the interpretation of this Agreement.
1.2.11. A reference to “in writing” includes any communication made by letter or fax but not e-mail
(unless otherwise expressly provided in this Agreement.).
1.2.12. Unless otherwise specified, any reference to a time of day is to Indian Standard Time.
1.2.13. Any words following the terms including, include, in particular, for example or any
similar expression shall be construed as illustrative and shall not limit the sense of the words,
description, definition, phrase or term preceding those terms.
1.2.14. Where the context permits, other and otherwise are illustrative and shall not limit the sense
of the words preceding them.
1.2.15. Any obligation on a party not to do something includes an obligation not to allow that thing to
be done.
2. COMPLIANCE
2.1. The Successful Bidder hereby represents and warrants to the State Government that it has
complied with all the terms and conditions of the Act and, the Rules made thereunder, the
Tender Document and other Applicable Law, as were required to be complied with by the
Successful Bidder, with respect to tender process for the Lease Area and the Successful
Bidder is eligible in all respects to receive Mining Lease over the Lease Area. The Successful
Bidder also represents and warrants to the State Government that it is in compliance with all
the Eligibility Conditions.
2.2. Relying on the representations and warranties of the Successful Bidder and the information,
documents and other undertaking provided by the Successful Bidder, including the
Warranties provided under Clause 11, the State Government is pleased to enter into this
Agreement with the Successful Bidder for grant of Mining Lease over the Lease Area to the
Successful Bidder subject to terms and conditions specified in this Agreement.
3.1. Grant of Mining Lease over the Lease Area shall be conditional upon prior payment of the
third instalment of the Upfront Payment which is INR [amount in figures] (Rupees [amount in
words]) within a period of 30 days from the Agreement Date.
3.2. Upon such payment, the State Government shall grant a Mining Lease to the Successful
Bidder within a period of 30 days from the date of receipt of the payment.
3.3. The date of the commencement of the period for which a Mining Lease is granted shall be the
date on which a duly executed Mining Lease is registered.
3.4. Notwithstanding anything contained in this Clause 3, no Mining Lease shall be executed on
the expiry of the period of three years from the date of letter of intent and the letter of intent
shall be invalidated leading to annulment of the entire auction process. The State Government
may, however, allow a further period of two years for execution of the Mining Lease deed if
the reasons for delay were beyond the control of the Successful Bidder.
4.1.1. The Successful Bidder has provided to the State Government [an irrevocable and
unconditional bank guarantee, dated [date] from [name of bank] issued at [place] and payable
at Bhubaneswar/ security deposit] for an amount equal to INR [amount in figures] (Rupees
[amount in words]) (the “Performance Security”) in the format provided in Schedule III of
the Auction Rules.
4.1.2. The amount of Performance Security shall be reassessed every five years commencing from
the date of issuance of the Performance Security i.e. [date], so that the amount of Performance
Security corresponds to 0.5% of the reassessed Value of Estimated Resources including the
value of any newly discovered mineral that may be included in the mining lease deed on its
discovery...
4.1.3. For the purposes of such reassessment, the Successful Bidder shall submit an application in
writing to the State Government at least three months prior to the expiry of the
aforementioned period of five years. Such application must contain in sufficient details,
documentary evidence confirming the reassessed Value of Estimated Resources including the
value of any newly discovered mineral that may be included in the mining lease deed on its
discovery on the date of such application.
4.1.4. The State Government shall dispose such application within three months from the date of
receipt of duly completed application. If the State Government does not dispose such
application within the aforementioned period of three months, then the application shall be
deemed to be approved. In such case, [bank guarantee constituting the Performance Security
shall be substituted with another bank guarantee] OR [additional amount shall be deposited
towards the security deposit] of the reassessed value issued in accordance with this Clause 4,
within a period of 15 (fifteen) days expiry of the aforementioned period of [three] months. In
case the Performance Security has been provided in the form of security deposit and the value
of Performance Security reduces after reassessment, the State Government shall refund the
excess value of security deposit.
4.1.5. The Performance Security should remain valid for an initial period of five years and
thereafter, for subsequent periods of five years or remaining Lease term, whichever is lower.
4.2.1. The Performance Security may be appropriated by the State Government upon occurrence of
any of the events specified in Table 4.3.1 (the “Appropriation Event”), to be determined by
the State Government in its sole discretion. In case the Performance Security is in form of a
bank guarantee, the State Government may invoke the same on an Appropriation Event. In
case the Performance Security is in form of a security deposit, the State Government may
deduct an amount from such security deposit on an Appropriation Event.
4.2.2. Provided however that in the event an Appropriation Event has occurred solely on account of
an Event of Force Majeure which could not have been mitigated by the Successful Bidder
through Good Industry Practice as provided in Clause 17, then the Performance Security shall
not be appropriated for such specific Appropriation Event.
4.3.1. Upon occurrence of an Appropriation Event, to be determined by the State Government, the
State Government shall have the unconditional right to appropriate the Performance Security
in the following proportion by providing a written notice to the Successful Bidder:
Table 4.3.1
S.No. Appropriation Event Amount of the Performance Security to
be appropriated
1. Failure of the Successful Bidder to An amount equal to the third installment
pay the third installment of the of the Upfront Payment together with
Upfront Payment within the time interest computed in accordance with rule
specified in Clause 3.1 14 of the Auction Rules.
2. Failure of the Successful Bidder to Value of the Performance Security for
comply with the Minimum each failure to comply with the Minimum
Production Requirement as required Production Requirement as specified in
under Clause 8 SCHEDULE D.
3. Any transfer of the mining lease Entire Performance Security.
which is not in conformity with the
Act and rules made thereunder.
4. Failure of the Successful Bidder to The amount of such Payment due and
make the Monthly Payment and payable, along with interest computed in
payments as per Clause 7.1.2 accordance with rule 14 the Auction
Rules.
5. In case of lapse of the mining lease, Such proportion as may be determined by
to carry out protective, reclamation the State Government as per sub rule (10)
and rehabilitation measures in the of Rule 20 of Minerals (Other than
Lease Area Atomic and Hydro Carbons Energy
Minerals) Concession Rules, 2016.
6. In case of surrender of the entire Entire Performance Security as per sub
area of the mining lease by the rule (3) of Rule 21 of Minerals (Other
lessee than Atomic and Hydro Carbons Energy
Minerals) Concession Rules, 2016.
7. Any other breach or non- Such proportion as may be determined by
compliance with any of the the State Government in its sole
provisions of this Agreement, discretion.
including in case of the Warranties
being untrue or misleading or
incorrect in any manner whatsoever.
4.3.2. In the event of a part or total appropriation of the Performance Security, the Successful
Bidder shall be required to: (i) rectify the Appropriation Event; and (ii) substitute the bank
guarantee constituting the Performance Security OR deposit additional amount towards
security deposit within fifteen days of receipt of a notice under Clause 4.3.1.
4.3.3. Any one or more Appropriation Events resulting in appropriation of the entire Performance
Security shall give the State Government a right to terminate the mining lease, without
prejudice to any other proceeding to be taken against the mining lease holder.
It is clarified that for the purposes of this Clause the initial Performance Security provided
under Clause 4.1.1 for INR [amount in figures] (Rupees [amount in words]) shall be
reckoned, and not the reassessed Performance Security under Clause 4.1.2.
5. INFORMATION
5.1. In addition to information that may be required to be provided in accordance with Applicable
Law, the Successful Bidder shall provide periodic reports to the State Government (or such
other Governmental Authority as may be specified by the State Government) regarding
mining operations at the Lease Area, including compliance with the Minimum Production
Requirement, in accordance with the following provisions:
Within 7 (seven) days of the commencement of mining operations at the Lease Area,
the Successful Bidder shall provide a written intimation to the State Government
confirming commencement of mining operations at the Lease Area (the
“Commencement Report”).
(c) Periodic reporting
The Successful Bidder shall also submit such reports and information as required
under the Act and the rules made thereunder.
5.2. The reports under Clause 5.1 shall be provided to the State Government as attachments to an
email addressed to the following e-mail address: directormines1@orissaminerals.gov.in or at
such other e‐mail address as may be specified in writing by the State Government from time
to time. Such attachments must be digitally signed by the Successful Bidder using a Class III
digital signature certificate issued by a certifying authority in India.
5.3. The State Government shall have the right to seek such further information regarding the
reports provided under Clause 5.1 and also seek independent verification of the same.
6. UTILISATION OF MINERAL
6.1. The Successful Bidder shall utilise the Mineral strictly in compliance with Applicable Law,
including the Act and the rules framed thereunder.
6.2. The Mining Lease shall be for all major mineral(s) found in the area subsequent to the
auction. The percentage of value of mineral despatched as quoted by the successful bidder
under sub-rule (3) of rule (8) of Auction Rules shall be applicable for the purpose of payment
to the State Government in respect of each such mineral.
6.3. Where, subsequent to the grant of mining lease, presence of a minor mineral(s) is established
or discovered, treatment of such minor mineral(s) shall be as per the provisions of the Odisha
Minor Mineral Concession Rules, 2016 (as amended or replaced from time to time) prevailing
at the time when the minor mineral is discovered in the concession area.
7. PAYMENTS
7.1.1. The Successful Bidder shall make monthly payments on the basis of the Final Price Offer (the
“Monthly Payment”). The Monthly Payment shall be computed on the basis of the Value of
Mineral Despatched.
7.1.2. In case the annual production is less than the Minimum Production Requirement specified in
Clause 8, the Successful Bidder shall make payment on the basis of the Final Price Offer on
the shortfall within 20 (twenty) days from the end of such year. For the purpose of
compliance with the Minimum Production Requirement, the expression “year” shall mean the
period of 12 months commencing from the effective date of Mining Lease, and each
subsequent 12 month period thereafter. The Upfront Payment paid by the Successful Bidder
shall be adjusted at the earliest in full against the amount payable in accordance with the per
cent of Value of Mineral Despatched quoted as the Final Price Offer on commencement of
production of mineral(s).
7.1.3. The Monthly Payment is required to be made within 20 calendar days of expiry of each
month with respect to Mineral extracted from the Lease Area in such calendar month.
7.1.4. All payments required to be made by the Successful Bidder shall be made net of all applicable
taxes. In the event, taxes are payable, the Successful Bidder shall gross-up the amount
payable and make payment of the aggregate amount.
The Successful Bidder shall also be required to make payments as required under Applicable
Law, including the Act and the rules framed thereunder.
8.1. The conduct of mining operations at the Lease Area shall be subject to the annual milestones
listed in SCHEDULE D with respect to production (the “Minimum Production
Requirement”).
8.2. The Successful Bidder would provide periodic information to the State Government regarding
compliance with the Minimum Production Requirement in the manner stipulated in Clause 5
(INFORMATION).
8.3. Any non-compliance with the Minimum Production Requirement would result in
appropriation of the Performance Security in the manner stipulated in Clause 4
(PERFORMANCE SECURITY AND APPROPRIATION) and in case where non-
compliance with the Minimum Production Requirement exceeds for more than five instances
during the term of the lease or occurs consecutively for three years, such non-compliance
shall give the State Government a right to terminate the mining lease without prejudice to any
other proceedings to be taken against the mining lease holder.
Pursuant to this agreement the Successful Bidder shall be entitled to conduct mining
operations only in the Lease Area and shall not be entitled to conduct the mining operations in
any other area outside the Lease Area. The rights granted to the Successful Bidder herein to
conduct mining operations are exclusive within the Lease Area.
9.2. Authorisations
The Successful Bidder shall obtain and maintain all Governmental Approvals required for
conducting the mining operations at the Lease Area and performing its obligations under this
Agreement.
It is expressly agreed that other than rights to mine for the Mineral(s) (as may be
granted under any Mining Lease pursuant hereto), geological or archaeological rights
do not form part of the rights granted to the Successful Bidder under this Agreement
and the Successful Bidder hereby acknowledges that except in relation to the
Mineral(s) (as may be granted under any Mining Lease pursuant hereto), it shall not
have any mining rights or interest in the underlying minerals, metals, gas, oil, fossils,
antiquities, structures or other remnants or things either of particular geological or
archaeological interest and that such rights, interest and property on or under the
Lease Area shall vest in and belong to the Central/ State Government or the concerned
Governmental Authority under Applicable Law. The Successful Bidder shall take all
reasonable precautions to prevent its workmen or any other person from removing or
damaging such interest or property and shall inform the Central/ State Government
forthwith of the discovery thereof and comply with such instructions as the concerned
Governmental Authority may reasonably give for the removal of such property.
The Mining Plan applicable pursuant to clause (b) of sub-section (2) of the Section 5 of the
Act shall be complied with by the Successful Bidder at all times. The Successful Bidder shall
also comply with Applicable Law in relation to conduct of mining operations.
11.1. The Successful Bidder represents and warrants to the State Government (save as otherwise
disclosed to the State Government in writing), as of the Agreement Date in the manner as
detailed in SCHEDULE E (“Warranties”).
11.2. None of the representations, warranties and/ or statements contained in this Agreement shall
be treated as qualified by any actual or constructive knowledge on the part of the State
Government or the Central Government or any of its respective agents, representatives,
officers, employees or advisers.
11.3. In the event that any of the representations or warranties made or given by the Successful
Bidder ceases to be true or stands changed, the Successful Bidder shall promptly notify the
State Government of the same. The Successful Bidder hereby waives all its rights to invoke
and shall not invoke the State Government's knowledge (actual, constructive or imputed) of a
fact or circumstance that might make a statement untrue, inaccurate, incomplete or misleading
as a defence to a claim for breach of Warranties or covenant or obligation of the Successful
Bidder.
12. INDEMNITIES
12.1. In this clause, a reference to the State Government shall include the State Government; any of
the departments or ministries of the State Government; and of the officers, employees, staff,
advisors, representatives or agents of the State Government (collectively the “Indemnified
Party”) and the provisions of this Clause shall be for the benefit of the Indemnified Party, and
shall be enforceable by each such Indemnified Party.
12.2. The Successful Bidder shall indemnify the Indemnified Party against all liabilities, costs,
expenses, damages and losses (including but not limited to any interest, penalties and legal
costs (calculated on a full indemnity basis) and all other professional costs and expenses)
suffered or incurred by the Indemnified Party arising out of or in connection with:
(d) any claim made against the Indemnified Party for actual or alleged infringement of a
Third Party's rights arising out of or in connection with mining operations at the
Lease Area or performance or non-performance of any of the obligations under this
Agreement to the extent that such claim arises out of the breach, negligent
performance or failure or delay in performance of this Agreement by the Successful
Bidder, its employees, agents or contractors;
(e) any claim made against the Indemnified Party by a Third Party for death, personal
injury or damage to property arising out of or in connection with mining operations at
the Lease Area or performance or non-performance of any of the obligations under
this Agreement; or
(f) any loss or damages caused on account of breach of any Applicable Law by the
Successful Bidder, including without limitation any costs incurred by the State
Government in cleaning or rectifying of any environmental damages caused by the
Successful Bidder on account of, lack of Good Industry Practice; breach, negligent
performance or failure or delay in performance of this Agreement; or non-compliance
with Applicable Law.
12.3. If any Third Party makes a claim, or notifies an intention to make a claim, against the
Indemnified Party which may reasonably be considered likely to give rise to a liability under
this indemnity (a “Claim”), the Indemnified Party shall as soon as reasonably practicable,
give written notice of the Claim to the Successful Bidder, specifying the nature of the Claim
in reasonable detail.
12.4. Subject to the Successful Bidder providing security to the Indemnified Party, to the
Indemnified Party's sole and absolute satisfaction against any claim, liability, costs, expenses,
damages or losses which may be incurred, the Successful Bidder may take such action as it
may reasonably deem fit to avoid, dispute, compromise or defend the Claim.
12.5. Payments of the amount of Claim shall become due and payable within [thirty] days of receipt
of notice of Claim. If a payment due from the Successful Bidder under this clause is subject to
Tax (whether by way of direct assessment or withholding at its source), the Indemnified Party
shall be entitled to receive from the Successful Bidder such amounts as shall ensure that the
net receipt, after Tax, to the Indemnified Party in respect of the payment is the same as it
would have been were the payment not subject to Tax.
13.1.1. Except as provided in this Clause 13, the Successful Bidder shall not assign this Agreement.
13.1.2. In situations where the mining lease of the Successful Bidder has been transferred in
accordance with the provisions of the Act and rules made thereunder, this Agreement shall be
promptly assigned by the Successful Bidder to the transferee of such mining lease and the
relevant assignee shall comply with the provisions of Clause 13.2.
Assignment of this Agreement under Clause 13.3 shall be subject to the following conditions
precedent:
(a) the proposed assignee must meet the applicable Eligibility Conditions;
(b) the proposed assignee must agree to unconditionally and irrevocably adhere to the
provisions of the Act and Rules made thereunder and this Agreement and must enter
into a deed of adherence/ assignment agreement in such form as may be satisfactory
to the State Government;
(c) the proposed assignee must have furnished the Performance Security, to substitute
any subsisting Performance Security provided by the Successful Bidder; and
(d) the proposed assignee must have paid any other amount due from the Successful
Bidder and agree to indemnify and hold the State Government harmless in all respects
against any claims from any Third Party or the Successful Bidder with respect to such
assignment.
13.3.1. Subject to Applicable Law, the Successful Bidder shall be entitled to create security over the
Lease Area through mortgage for the purposes of availing financing from a bank or financial
institutions for the purposes of financing of mining operations at the Lease Area and such
security creation shall not require prior approval by the State Government or the Central
Government.
14. INSURANCE
At all times during the Term hereof, the Successful Bidder will maintain, and cause its
contractors and sub-contractors to maintain, with financially sound and reputable insurers,
insurance against such casualties and contingencies, of such types, on such terms and in such
amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are
maintained with respect thereto) as is consistent with Good Industry Practice.
The Successful Bidder shall maintain books of accounts recording all its receipts, income,
expenditure, payment, assets and liabilities in accordance with Good Industry Practice and
Applicable Law.
15.2. Appointment of auditors
The State Government shall have the right, but not the obligation, to appoint at its cost at any
time, an auditing firm or an auditor to audit and verify all those matters, expenses, costs,
realizations and things with respect to the Lease Area or which the statutory auditors are
required to do, undertake or certify pursuant to this Agreement.
Any claim or document provided by the Successful Bidder to the State Government in
connection with or relating to receipts, income, payments, costs, expenses, accounts or audit,
and any matter incidental thereto shall be valid and effective only if certified by its statutory
auditors in case of a company or chartered accountant in case of a partnership firm,
individual, association of individual or sole proprietorship.
16.1. The Central Government or the State Government, through its authorized representatives shall
have the right to free ingress and egress within any part of the Lease Area at any time to
inspect works or activities being undertaken or implemented by the Successful Bidder in
order to monitor and verify compliance with the terms of this Agreement and Applicable
Law.
16.2. The Central Government or the State Government, through its authorized representatives,
shall have access to the Successful Bidder‟s financial and other records and transactions
(relatable to any period) at any time upon reasonable advance notice, the right to copy
therefrom, for the purpose of assessing the performance and compliance of the Successful
Bidder with the terms of this Agreement and Applicable Law, rules and regulations or to aid
in the enforcement of the same.
16.3. The Central Government or the State Government shall have the right to conduct, either
directly or indirectly through any Third Party, a performance audit to verify compliance by
the Successful Bidder, of its obligations hereunder.
17.3. Upon occurrence of an Event of Force Majeure, the Successful Bidder shall:
(i) as soon as reasonably practicable after the start of the Event of Force Majeure but no
later than thirty days from its start, notify the State Government in writing of the
Event of Force Majeure, the date on which it started, its likely or potential duration,
and the effect of the Event of Force Majeure on its ability to perform any of its
obligations under this Agreement; and
(ii) use all reasonable endeavours to mitigate the effect of the Event of Force Majeure on
the performance of its obligations including following of Good Industry Practice.
17.4. If an obligation is suspended by reason of an Event of Force Majeure for more than [one]
month continuously, the Parties shall enter into good faith negotiations to revise the terms of
this Agreement to reflect the changed circumstances, provided that this Agreement shall
remain in effect during the period during which the Parties are negotiating the terms of any
such revision.
This Agreement shall come into effect on the Agreement Date i.e. [date].
18.2. Term
This Agreement shall commence on the dates mentioned in Clause 18.1and shall continue for
the period of validity of the Mining Lease granted to the Successful Bidder (“Term”).
18.3. Retention of Books and Records
Upon termination of this Agreement, the Successful Bidder shall retain all documents,
books and records related to the Lease Area for a period of [three] years or such
longer period as may specified under Applicable Law. It is clarified that the
Successful Bidder may also retain such books and records in electronic form if
permitted under Applicable Law.
19. MISCELLANEOUS
Each of the Parties hereby agrees that, with regard to all dates and time periods set forth or
referred to in this Agreement, time is of the essence.
19.2. Publicity
The Successful Bidder shall not issue any information, document or article for publication in
any news or communications media or make any public statement in relation to this
Agreement without the prior written consent of the State Government unless required to do so
by Applicable Law, provided that prior to any disclosure of any such information required by
Applicable Law, the Successful Bidder must first notify the State Government, who shall then
have the opportunity to respond to and/or dispute such intended disclosure.
19.3. Severability
19.3.1. If any term, provision, covenant or restriction of this Agreement or the application thereof to
any Person or circumstance shall be held invalid, void or unenforceable by a court of
competent jurisdiction or other Governmental Authority to any extent, the remainder of the
terms, provisions, covenants and restrictions of this Agreement and the application thereof to
Persons or circumstances (other than those as to which any portion of this Agreement is held
invalid, void or unenforceable) shall not be affected thereby and shall remain in full force and
effect to the fullest extent permitted by law, so long as the economic or legal substance of the
transactions contemplated hereby is not affected in any manner materially adverse to any
Party.
19.3.2. Upon such a determination, the Parties shall negotiate in good faith to modify this Agreement
so as to effect the original intent of the Parties as closely as possible in an acceptable manner
in order that the transactions contemplated hereby be consummated as originally
contemplated to the fullest extent possible.
19.4.1. The Successful Bidder shall bear its own costs in connection with the execution of this
Agreement.
19.4.2. The stamp duty payable for this Agreement shall be borne by the Successful Bidder.
The Successful Bidder shall cooperate with the State Government and execute and
deliver to the State Government such instruments and documents and take such other
actions as may be requested from time to time in order to carry out, evidence and
confirm their rights and the intended purpose of this Agreement.
19.6. Legal and prior rights
All rights and remedies of the State Government hereto shall be in addition to all other legal
rights and remedies belonging to the State Government and the same shall be deemed to be
cumulative and not alternative to such legal rights and remedies aforesaid and it is hereby
expressly agreed and declared by and between the Parties hereto, that the determination of
this Agreement for any cause whatsoever shall be without prejudice to any and all rights and
claims of the State Government, which shall or may have accrued prior thereto.
19.7. Waiver
19.7.1. The waiver of any default or breach under this Agreement by the State Government shall not
constitute a waiver of the right to terminate this Agreement for any substantial default of a
similar nature or under any other terms and conditions of this Agreement.
19.7.2. No failure or delay by the State Government in exercising any right or remedy provided by
Applicable Law under or pursuant to this Agreement shall impair such right or remedy or
operate or be construed as a waiver or variation of it or preclude its exercise at any subsequent
time and no single or partial exercise of any such right or remedy shall preclude any other or
further exercise of it or the exercise of any other right or remedy. The rights and remedies of
the State Government under or pursuant to this Agreement are cumulative, may be exercised
as often as it considers appropriate and are in addition to its rights and remedies under
Applicable Law.
19.7.3. Submission of any document, information, report or notice, which contains any information
or reference to any default or breach under this Agreement or any Applicable Law, to the
State Government shall not be construed to be a deemed approval of such breach or default
and the State Government may exercise any rights or remedies with respect to such default at
any time.
19.8. Amendments
No amendment of this Agreement (or of any of the documents referred to in this Agreement)
shall be valid unless it is in writing and signed by or on behalf of each of the Parties to it. The
expression “amendment” shall include any amendment, variation, supplement, deletion or
replacement however effected. Unless expressly agreed, no amendment shall constitute a
general waiver of any provisions of this Agreement, nor shall it affect any rights, obligations
or liabilities under or pursuant to this Agreement which have already accrued up to the date of
amendment, and the rights and obligations of the Parties under or pursuant to this Agreement
shall remain in full force and effect, except and only to the extent that they are so amended.
19.9. Counterparts
This Agreement may be executed in two counterparts, each of which will be deemed an
original, with the same effect as if the signatures thereto and hereto were upon the same
instrument, but all of which together will constitute one and the same instrument.
The Parties agree that nothing in this Agreement shall be in any manner interpreted to
constitute an agency for and on behalf of any other Party. None of the provisions of this
Agreement shall be deemed to constitute a partnership between the Parties hereto and no
Party shall have any authority to bind the other Party or shall be deemed to be the agent of the
other Party in any way.
19.11. Notices
A copy of the Notice sent by registered post with acknowledgment due, or transmitted by
facsimile transmission may also be sent through email to the email addresses specified in
SCHEDULE F solely for the information of the recipient and shall take effect only when the
registered post is actually delivered or the fax is received by the recipient, as the case may be.
The Mining Lease inclusive of this Agreement (including all such deeds and documents
issued or executed pursuant hereto or referred to herein), and the Tender Document, together
with all documents referred herein and thereunder constitutes and represents the entire
agreement between the Parties with regard to the rights and obligations of each of the Parties
and cancels and supersedes all prior arrangements, agreements or understandings, if any,
whether oral or in writing, between the Parties on the subject matter hereof or in respect of
matters dealt with herein. If there is a conflict between the Mining Lease inclusive of this
Agreement and the Tender Document, the Mining Lease inclusive of this Agreement would
have overriding effect.
The Successful Bidder shall meet the annual Minimum Production Requirement as stated in the table
below:
Year (since Minimum Production Requirement (% Value of Performance Security to be
commencement of of yearly production as per approved appropriated
mining lease) Mining Plan)
Year 1 0% 24% of Average sale price of relevant
Year 2 0% mineral published by IBM as
Year 3 40% applicable during the year of shortfall
Year 4 50% (multiplied by) shortfall in
Year 5 55% production [minimum production
Year 6 onwards 60% requirement (minus) actual annual
production]
SCHEDULE E - WARRANTIES
1. INFORMATION
1.1. The information, provided to the State Government during the tender process and any time
thereafter, including but not limited to the information contained in this Agreement, by the
Successful Bidder is true, accurate and not misleading in any manner whatsoever.
1.2. Neither this Agreement nor any of the information and documents provided during the tender
process exercise contains any untrue statement of fact, or omits to state a material fact
necessary to make the statements herein or therein not misleading. The documents provided
to the State Government and/or its advisors during the conduct of the tender process, are true
and complete copies of such documents and none of the information provided to the State
Government and/or its advisors during the tender process was incorrect, inaccurate or
misleading in any manner whatsoever.
2. AUTHORITY
2.1. The Successful Bidder has full legal capacity to enter into this Agreement and to perform its
obligations under it and has taken all action necessary to authorise such execution and
delivery and the performance of such obligations.
2.2. This Agreement has been duly executed and delivered by the Successful Bidder, and
(assuming due authorisation, execution and delivery and performance by the Parties),
constitutes a legal, valid and binding obligation of the Successful Bidder, enforceable against
the Successful Bidder in accordance with the terms of the Agreement.
2.3. The Successful Bidder has obtained requisite corporate authorisation, including passing of all
necessary resolutions at the meeting of its board of directors/ partners/ members held on
[date] to execute this Agreement and carry out all transactions and actions contemplated
under this Agreement and do all necessary acts incidental to this Agreement.
2.4. The execution and delivery of this Agreement by the Successful Bidder and the performance
of the obligations under it do not and shall not:
(a) conflict with or violate any provision of the memorandum of association or articles
of association of the Successful Bidder;
(b) require on the part of the Successful Bidder, any filing with, or permission,
authorisation, consent or approval of, any Governmental Authority;
(c) conflict with, result in breach of, constitute (with or without due notice or lapse of
time or both) a default under, result in the acceleration of obligations under, create in
favour of any party any right to terminate, modify or cancel, or require any notice,
consent or waiver under, any contract or instrument to which the Successful Bidder is
party or by which it is bound or to which its assets are subject; and
(d) violate, conflict with or constitute a default under any Applicable Law, lien, lease,
judgement, award, Act, order, writ, injunction, decree, statute, rule or regulation or
any other restriction of any kind or character applicable to the Successful Bidder or
its properties or assets.
2.5. No person is entitled to any brokerage, finder's, or other similar fee or commission in
connection with the transactions contemplated by this Agreement.
3. GENERAL
(a) is duly organised, validly existing and in good standing under the laws of India;
(b) meets all the Eligibility Conditions prescribed under the Act read with the Auction
Rules and the Tender Documents;
(c) has the financial standing and capacity to undertake mining operations at the Lease
Area in accordance with the Production Requirement;
(d) is subject to civil and commercial laws of India with respect to this Agreement and it
hereby expressly and irrevocably waives any immunity in any jurisdiction in respect
thereof;
(e) there are no actions, suits, proceedings or investigations pending or to the Successful
Bidder‟s knowledge threatened against it at law or in equity before any court or
before any other judicial, quasi judicial or other authority, the outcome of which may
constitute an event of default hereunder;
(f) has neither violated or defaulted nor has knowledge of any violation or default with
respect to any order, writ, injunction or any decree of any court or any legally binding
order of any Governmental Authority;
(g) has complied with Applicable Law and has not been subject to any fines, penalties,
injunctive relief or any other civil or criminal liabilities;
(h) except as set forth in any Mining Lease, all rights and interests of the Successful
Bidder in and to the Lease Area shall pass to and vest in the relevant Governmental
Authority on the date of termination or expiry hereof, free and clear of all
Encumbrances without any further act or deed on the part of the Successful Bidder or
the Central Government;
(i) no bribe or illegal gratification or any other illegal amount has been paid or will be
paid in cash or kind by or on behalf of the Successful Bidder to any Person to procure
the rights granted hereunder; and
(j) Without prejudice to any express provision contained in this Agreement, the
Successful Bidder acknowledges that prior to the execution of this Agreement, the
Successful Bidder has after a complete and careful examination made an independent
evaluation of the Lease Area and the information provided by the State Government,
and has determined to its satisfaction the nature and extent of risks and hazards as are
likely to arise or may be faced by the Successful Bidder in the course of performance
of its obligations hereunder. The Successful Bidder also acknowledges and hereby
accepts the risk of inadequacy, mistake or error in or relating to any of the matters set
forth above and hereby confirms that the State Government and any Governmental
Authority shall not be liable for the same in any manner whatsoever to the Successful
Bidder.
Address
Telephone
Fax
E-mail (only
for
information)
With CC to the Central Government
Address
Telephone
Fax
E-mail (only for
information)
IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their duly
authorised representatives on the date and year written below, at Bhubaneswar:
Signatories
Government of Odisha
[Name of the Successful Bidder]
…………………………………… ……………………………..
Name: Name:
Designation: Designation
Date: Date:
No.
Department of Steel & Mines,
Bhubaneswar, Odisha
Date:
To,
[Name of Preferred Bidder]
[Address of Preferred Bidder]
Sub: Letter of intent with reference to e-auction dated [Insert Date] for grant of a mining lease for
[Name of Mineral Block] for [Name of the Mineral] in ………… village, ……………. Taluka,
………………… District on ………………… Hectare Area of Survey No. ……………
1. Background:
1.1 The Directorate of Mines, Government of Odisha, pursuant to the Mines and
Minerals (Development and Regulation) Act, 1957 (the “Act”) and the Mineral
(Auction) Rules, 2015 as amended from time to time (the “Auction Rules”), issued
the notice inviting tender dated [Insert Date] to commence the auction process for
grant of mining lease for [Name of Mineral Block] located in [Name of the District of
Odisha]. The e-auction process was conducted in accordance with the tender
document for the said mineral block and [Name of the Preferred Bidder] was declared
as the „Preferred Bidder‟ under Rule 9(9)(iii) of the Auction Rules, having quoted a
Final Price Offer of [Insert Amount].
1.2 As required under Rule 10(1) of the Auction Rules and the tender document for the
said mineral block, [Name of the Preferred Bidder] (a) made payment of the first
instalment, being 10% (ten percent) of the upfront payment of Rs. [Insert Amount
(both in number and words)] through [Mode of Payment] dated [date of making of
payment], which was received on [Date of receipt of payment
2.1. Accordingly, pursuant to Rule 10(2) of the Auction Rules and the terms of the Tender
Document, the Government of Odisha is issuing this letter of intent for grant of
Mining Lease for [Name of Mineral Block] for [Name of the Mineral] in …………
village, ……………. Taluka, ………………… District on ………………… Hectare
Area of Survey No. ……………to [Name of Preferred Bidder] for a period of 50
years.
3. Conditions
3.1. This letter of intent and the subsequent grant of aforementioned mining lease shall be
subject to the provisions of the Act and the rules made thereunder, as amended from
time to time, and the [Name of the Preferred Bidder] shall be designated as the
„successful bidder‟ and subsequently granted the mining lease only upon satisfactory
completion of all the requirements under the Act and the rules made thereunder.
3.2. This Letter of Intent shall be valid only if [Name of the Preferred Bidder] ensures that
the Bid Security is valid until the Performance Security is furnished to the
Government of Odisha, failing which this Letter of Intent shall become invalid from
the date of expiry of the Bid Security.
3.2. For reference, the requirements under the Auction Rules for designation of [Name of
the Preferred Bidder] as the „successful bidder‟ and subsequent grant of the mining
lease are reiterated below. It is clarified that the requirements mentioned below are
only for reference and in the event of any change in the Act or the rules made
thereunder, the requirements under the modified Act or the rules made thereunder, as
the case may be, shall be applicable.
[Name of the Successful Bidder] shall sign the Mine Development and
Production Agreement with the Government of Odisha upon obtaining all
consents, approvals, permits, no-objections and the like as may be required
under applicable laws for commencement of mining operations.
4.1. This letter of intent is valid for a period of [3 (three)] years from the date of its
issuance, within which time all the above conditions must be fulfilled and the Mining
Lease deed must be executed between the [Name of the Preferred Bidder] and the
Government of Odisha. In case there is a delay in execution of Mining Lease Deed
due to reasons beyond the control of the Preferred Bidder, then it may submit an
application to Government of Odisha, requesting for further extension.
4.2. If the Government of Odisha is satisfied that there is a delay in execution of Mining
Lease Deed due to reasons beyond the control of the Preferred Bidder and a longer
period is required to enable the Preferred Bidder to satisfy all or any of the above
conditions, it may extend the validity of this letter of intent for such period or periods
as the Government of Odisha may specify. Provided that: (a) this letter of intent shall
be extended for a maximum period of [2 years]; and (b) the total period for which this
letter of intent would remain valid must not exceed [5 (five)] years from the date of
issuance.
Kindly return the duplicate copy of this Letter of Intent duly signed by authorized
signatory in token of having accepted the above terms and conditions. The accepted
copy of Letter of Intent along with Board resolution should be submitted latest by
[Insert Date].
[Designation]