corrigendum # 1 to tender document and reply to pre bid queries for ...

CORRIGENDUM # 1 TO TENDER DOCUMENT AND REPLY TO PRE BID QUERIES

FOR E-AUCTION

OF

MINING LEASE

FOR CEMENT GRADE LIME STONE

OF

SINDWARI, RAMAKHERA, SATKHANDA, BLOCK-B

TEHSIL NIMBAHERA, CHITTAURGARH

DISTRICT CHITTAURGARH STATE: RAJASTHAN

Document No.: MSTC/NRO/Directorate of Mines and

Geology Rajasthan, Udaipur/1/Udaipur/ 15-16/12303

DIRECTORATE DEPARTMENT OF MINES & GEOLOGY

GOVERNMENT OF RAJASTHAN

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Sl. No. Description Page No. Clause / Para /

Section 1 Timetable 17-19 of 126 12 Modification

2 Bid Security 24 of 126 15 Addition

3 Reply to Pre Bid Queries

The revised Timetable is enclosed as Annexure-I to this Corrigendum # 1

CORRIGENDUM # 1FOR

MINING LEASE FOR CEMENT GRADE LIME STONEOF

SINDWARI, RAMAKHERA, SATKHANDA, BLOCK-BDocument No.: MSTC/NRO/Directorate of Mines and Geology Rajasthan, Udaipur/1/Udaipur/ 15-16/12303

All other terms & conditions of tender document remain unaltered.

The Reply to Pre Bid Queries is enclosed as Annexure-II to this Corrigendum # 1

The following is appended in clause no. 15.2 Bid Security shall be in favour of Director,Department of Mines & Geology ,Govt. of Rajasthan payable at Udaipur.

Amendment / Addition / Modification / Deletion

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ANNEXURE-I TO CORRIGENDUM # 1 12. Timetable The following timetable shall apply to the tender process. The timetable may be

amended by the State Government through issuance of an addendum to the Tender Document.

S. No. Event Description Time (Days) Stage I – E-auction process for selection of Preferred Bidder 1. Publication of Notice Inviting Tender in

newspaper and on the State Government & MSTC websites.

17th November 2015

2. Commencement of sale of Tender Document at the website of MSTC. .

17th November 2015

3. Last date for sale of Tender Document. 2nd Decemeber 2015 4. Last date of receiving queries from Bidders 11th Decemeber 2015 5. Pre-bid conference at 1300 Hrs (IST) 16th Decemeber 2015 6. Last date for responses to queries by the State

Government 28th Decemeber 2015

7. Bid Due Date (Technical + initial price offer) by 1600 Hrs (IST)

4th Janurary 2016

8. Opening of the Technical Bids. 5th Janurary 2016 9. Start date for examination of the Technical

Bids 5th Janurary 2016

10. Announcement of the Technically Qualified Bidders

19th Janurary 2016

11. Training and mock-auctions for all the Technically Qualified Bidders on e-auction platform by the e-auction platform provider

21st Janurary 2016

12. Opening of initial price offers of Technically Qualified Bidders and intimation of Qualified Bidders two days prior to the scheduled date of e-auction of the respective mineral block (to Qualified Bidders only)

25th Janurary 2016

13. Conduct of ascending forward electronic auction and submission of Final Price Offer on the electronic auction platform.

28th Janurary 2016

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14. Announcement of Preferred Bidder 28th Janurary 2016

15. Payment of first installment (10%) of Upfront Payment by the Preferred Bidder for mining lease.

29th Feburary 2016

16 Issuance of letter of intent by State Government

8th March 2016

17. Submission of Performance Security and second installment (10%) of Upfront Payment by the Preferred Bidder.

11th April 2016

18. Submission of mining plan by the Preferred Bidder and Issuance of order by the State Government considering Preferred Bidder as Successful Bidder

8th September 2016

Stage II : After Successful Bidder obtains all necessary clearances/approvals from various government agencies/departments

1. Submission of all necessary clearances /approvals from various government agencies/departments by Successful Bidder

T1

2. Execution of Mine Development & Production Agreement (MDPA) between State Government & Successful B i d d e r .

T1+20

3. Payment of third installment (80%) of Upfront Payment

T1+50

4. Grant of Mining Lease to the Successful Bidder.

T1+80

5. Execution of Mining Lease Deed

T1+110

6. Registration of Mining Lease Deed T1+140

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

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Sl. No. Bidders Queries Reply 1 6. Review Period and Site visit

Will the Government representative from State Geology and land department shall be available at site?

No State Geology and land department official will be available at site, bidder may undertake Site Visit as per clause no. 6.0 of Tender Document.

2 8.1 A(a)(ii) Initial price offer must be equal to or greater than reserve price

15.6 Bid Security - If e auction process is annulled due to non submission of at least one Final Price offer on the electronic e auction platform, by qualified bidder(s) who has submitted the highest initial price offer Suppose highest initial price offer by various bidders are same then every bidder has to submit at least one bid?

The clause no. 8.1(B) is self explainatory , please refer the same.

3 22. Charagah Land (pasture land)

Any mining related activity in Charagah Land (pasture land) falling in notified block shall be subject to the directions of Courts and State Policy pronounced from time to time in this regard. The bidder will be liable for all consequential impacts without recourse to the State Government.

No acquisition of charagah land shall have adverse impact on the targeted production

Tender Condition Prevails.

4 Tender document has been asked for Mining lease of cement grade limestone Schedule IV: format of Information memorandum 15 (e) Grade of limestone Cao 40.48% SiO2 19.17% & MgO less than 2 %

Whether GoR will provide the reserve of cement grade limestone

i) The resource estimation for cement grade limestone is based on 40% CaO as per IBM guidelines, considering the scope of beneficiation and blending.

However bidder has to make all assessment for technical and commercial feasibility. More over the block is not tied up for any specific end use.

REPLY TO PRE BID QUERIES MINING LEASE FOR CEMENT GRADE LIME STONE

OFSINDWARI, RAMAKHERA, SATKHANDA, BLOCK-B

Document No.: MSTC/NRO/Directorate of Mines and Geology Rajasthan, Udaipur/1/Udaipur/ 15-16/12303

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Sl. No. Bidders Queries Reply




5 Schedule E ; Production Requirement Schedule IV Format of MDPA, Clause 4. 3.1 (2) Failure of successful bidder to comply with minimum production requirement under clause 8 Clause 7.1.1The 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 value of mineral dispatched or the value of minimum production requirement as specified in clause 8, whichever is higher

Clause 8.1 The conduct of mining operations at the Lease Area shall be subject to the milestones listed in SCHEDULE E with respect to production (the “Production Requirement”) and the minimum annual production to be achieved every year.

Schedule E ; Tentative production requirement

Bidder has to adhere min.annual production requirement as specified in Schedule E of MDPA

6 12. Timetable – Stage I and Stage II Any specific time limit between stage I and stage II

Will be decided by State Govt. after examining the relevant issues on case to case basis.

7 12 Time tableSr. No. 18. Submission of mining plan by the Preferred Bidder to become Successful Bidder.

1. For preparing mining plan a large no of base line date is required like topographic survey, detailed geological report, sections and base line environmental data ( at least one quarter) , Will the same be provide by GoR, if not than time line of 6 month is not sufficient


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8 Schedule IV: Format of MDPAClause 10. Mining Plan and Compliance with Applicable LawSchedule V: Information MemorandumClause 15 (c) - The basis of the classification of the mineral resources into varying confidence categories.

15 (e) - Detailed description of the method used and the assumption made to estimate tonnages and grade (section, polygon, inverse distance,geostatistical, or other method).

G 2 (After relaxation vide GOI letter no.7/48/2015-MIV, October 2015) under rule 8 of Minerals (Evidence of Mineral Contents) Rules 2015.

The deposit falls in G-2 (after relaxation vide GOI letter no. 7/48/2015-MIV, October 2015).

As GOI has already relaxed the norms, Mining Plan will be approved by IBM.

9 Clause 9.1The reserve price is 14% of value of mineral despatched as per IBM.What is the basis of 14% for thie Block, whereas it is different for other blocks?

This is arrived based on internal assessement which cannot be disclosed. Bidder has to excerise his own assessment while bidding

10 Schedule -V Information memorendumAs per existing Court order no Charaghah land could be diverted for other purposes including mining.


11 Schedule -V Information memorendum

Whether the state Government will help in acquireing the private land under the land acquisition act?

The successful bidder have to obtain all statutory licenses, permits, permissions, concessions, approvals and consents related to mining operations.

12 As per MMDR Act 1957 Section 6 (1)(b) No person can acquire in a State one or more mining leases covering a total area of more than ten square kilometer. In case of Exceeding this limit whether the permission from Central Government is required or not. After becoming successful bidder if area

Required

13 Schedule -V Information memorendum

Whether this Block falls within 10 km radius of Chittorgarh fort.

No,please refer sl. No. 3 ( c) of Schedule V ( Information Memorandum)

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14 MDPA Schedule - EMinimum annual production third year onward 2.86 mt. has been mentioned. On what basis this production limit has been arrived.

This is arrived based on internal assessement which cannot be disclosed.

15 MDPA Schedule - EMinimum annual production third year onward 2.86 mt. has been mentioned.

The limestone is low grade and highly silicious. Difficult to manufacture clinker. How it is to be utilized



16 MDPA Schedule - EMinimum annual production third year onward 2.86 mt. has been mentioned. Whether the limestone to be sold for any other purpose

Yes, as no end use has been specified for the block

17 MDPA Schedule - EProduction schedule starts just after MDPA.The mine requires Monitorial period for land acquisition, Instalation of cement plant , other infrastructure etc.


18 2(f) Cadastral details of the area with land use for SRS Block-BLand Type Area (in Hectares) Govt. Land/Abadi 32.81 Charagah/Pasture Land 33.76 Private Land (Khatedari) 407.5 Forest Land - Total 474.5

Respecive loss of resources due to Abadi, Charagah, Canal and National Highway to be clarified for knowing the mineable resources/reserves

Auction is being conducted on estimated mineral resource as per Mineral (Evidence of Mineral Contents) Rule 2015 and Mineral Auction Rule 2015

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19 12 (c ) Check analysis of at least 10% of samples may be analyzed from third party NABL accredited/or department of science & technology (DST) /BIS recognized laboratories or government laboratories for assessing the acceptable levels of accuracy.

All samples are analysed at DMGR (Govt. Laboratory). In addition about 5% of samples have been cross checked at same laboratory to confirm the results

Seems to be not inline with guidelines issued by IBM for preparation and approval of mining plans.


20 15 (a) Discussion on sufficient data density to assure continuity of mineralization and synthesis adequate date base for estimation producer used.

Yes, data are sufficientsubstantiation regarding the sufficiency of the data


21 15 (e ) Detailed description of themethod used and the assumption made to estimate tonnages and grade (section, polygon, inverse distance, geostatistical, or other method).

Polygonal method was used for estimating mineral resources.

The block comprises 174.45 Million Tonnes Geological resource of limestone with average of CaO 40.48%, SiO2 19.17% & MgO less than 2%.

The basis considered with SiO2 of 19.17% cannot be treated as cement grade limestone

22 15 (e ) Detailed description of themethod used and the assumption made to estimate tonnages and grade (section, polygon, inverse distance, geostatistical, or other method).Polygonal method was used for estimating mineral resources.The block comprises 174.45 Million Tonnes Geological resource of limestone with average of CaO 40.48%, SiO2 19.17% & MgO less than 2%.

The basis considered with SiO2 of 19.17% cannot be treated as cement grade limestone



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23 2 (f ) - Charagah/Pasture Land of 33.76 Ha in SINDWARI, RAMAKHERA, SATKHANDA, BLOCK-B is included in the Land Type and reserves estimated for entire area

Point 22 of Bid document states "Charagah land shall be subject to directions of Courts and State Policy pronounced from time to time" whereas , as per circular no F-10(3)RAJ-6/2001/07 dated 25.04.2011 of State Govt. of Rajasthan Charagah Land may not be considered for mining

Whether mining plan has to be prepared and got approved by IBM by including or excluding Charagah land


24 10 Drilling technique & drill sampling employed

Core recovery which is vital information may be provided in the document

As per GR the avg. core recovery is 89.65%. Interested bidder may purchase detailed Geological Report from Publication cell of the Department.

25 8.1. (e) Provided that 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 e-auction process shall be annulled:

Provided further that the State Government may, in its discretion, decide not to annul the e-auction process if even in the third or subsequent attempt continued to be less than three and the State Government may, in such case, decide to consider the technically qualified bidders as qualified bidders so as to continue with the bidding process:

What is the time frame to decide and continue the Bidding Process and whether the Bidder qualified in 1st Round has to participate afresh

The clause no. 8.1(e) is self explainatory , please refer the same.

26 9.1 The Reserve price is 14% for Block B

Please englighten the basis for consideration of such variation in the reserve price

This is arrived based on internal assessement which cannot be disclosed. Bidder has to excerise his own assessment while bidding

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27 10.3 Execution of Mine Development and Production Agreement:

The State Government and the Successful Bidder shall enter into the MDPA upon the Successful Bidder having obtained all consents, approvals, permits, no-objections and the like as may be required under Applicable Law for commencement of mining operations

What is the time frame for submission of all necessary clearnaces / approvals from various Govt. agencies / department by successful bidder


28 12 Time Table Under S. No. 18 - Sumission of mining plan by the Preferred Bidder to become Successful Bidder, 8th September 2016

Currently the block has been assessed only for resources. For convertion of the resources into reserves as per UNFC classification as a pre requisite for preparation of mining plan, detailed exploration would be required. In the absence of prospecting license with the bidder the exploration invariably has to be taken up by the State Govt. and the time period of six months may not be sufficient as the process of preparation of mining plan and getting IBM's approval itself normally takes six months


29 14.7.2 (b) Disqualification for a period of 5 yrs for reason stated under - The Bidder does not provide within the time specified by the State Govt. the supplemental information sought by the State Govt. for evaluation of the bid.


30 14.1.2 The Technical Bid shall be submitted on the electronic platform and the duly executed original physical copies must be sent to the following address so that they are received on or prior to the Bid Due Date & Time , failing which the Technical Bid shall be deemed to be not received.


31 19.4.1 Costs and expenses :The Successful Bidder shall bear its own costs in connection with the negotiation,


32 19.4.2. The stamp duty payable for this Agreement shall be borne by the Successful Bidder. Tender Condition Prevails.

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33 Schedule D - Particulars of End Use plant is mentioned as Not Applicable

Schedule E- Production Requirement Block AYear Production Capacity (MT/Year) Minimum Annual Production(MT/Year)1st Year 1.0 0.82nd Year 2.0 1.63rd year and onwards 3.57 2.86

The resources are to be converted to reserves for preparing mining plan and getting it approved which warrants detailed exploration. Consideration of such arbitary production figures without relation to the requirment of the end-use-plant vis a vis mine life may be clarified


34 Schedule F -Warranties

This appears to be superflous as necessary cerfication/authentication etc are already provided under various clauses with the Bid document and may cause inhibitions instead of encouraging the transparent auction process. May be omitted


35 Part B - particulars of Statutory Licenses, Permits, Permissions, Concessions, Approvals and Consents Related to mining operations

9. Ground water clearance (Central/State) to be obtained by Successful Bidder

Obtaining permission is not possible. State Govt. may clarify base of getting it

The successful bidder have to obtain all statutory licenses, permits, permissions, concessions, approvals and consents related to mining operations. Further, while bidding the bidder has to take into consideration all the facts and circumstances with his own assessment and wisdom after ground level verification of the block.

36 Clause 15 (e) of Schedule V – information Memorandum: -

“The block comprises 224.04 Million Tonnes Geological resource of limestone with average of CaO 40.48% SiO2 19.71% & MgO less than 2 %”

Query/Suggestion : What is the mineable reserve in this block?


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37 The tender document defines Upfront Payment in clause 2.13 as “an amount equal to INR 41,08,29,750/- / (Indian Rupees Forty One Crores Eight Lakhs Twenty Nine Thousand Seven Hundred Fifty Only) payable pursuant to the Auction Rules.” Further the Mineral (Auction) Rules, 2015 define Upfront payment as “An amount equal to 0.50% of the value of estimated resources” and value of estimated resources is defined as an amount equal the product of, -(i) the estimated quantity of mineral resources for which the mineral block is being auctioned, expressed in metric tonne; and (ii) the average price per metric tonne of such mineral as published by Indian Bureau of Mines for the relevant State for a period of twelve months immediately preceding the month of computation of the Value of Estimated Resources. Query/Suggestion : Upfront payment should be based on value of mineable reserves.


38 Clause 13 of the Tender document states that the holder of mining lease shall make monthly payments with respect to the Value of Mineral Despatched or the minimum production requirement as specified in the MDPA, whichever is higher. Query/Suggestion : The minimum production requirement calculation methodology to be spelt out. Further it is suggested that the minimum production requirement to be calculated on the basis of mineable reserves if not already being done.


39 Since the reserves in this mineral block are estimated to be of average CaO 40.48% and considering the fact that higher CaO% of limestone is required for producing quality cement, would the Government subsequently grant/give preference for grant of additional mineral block lease (with high quality reserves) to the successful bidder. So that the bidder is able to extract “sweetner/high grade” limestone to support the use from this mineral block.

No

40 Clause 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 StateGovernment reserves the right to reject all or any of the Bidders or bids without assigning any reason whatsoever.”


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41 Clause 12 – Timetable Point 17 and 18

It should be clarified as to why the State Government has departed from the timetable provided in the Auction Rules, 2015 with respect to declaration of preferred bidder as successful bidder. In this document the acknowledgment of successful bidder is dependent on the date of submission of clearances which is not so as per the Auction Rules, 2015

Please refer Corrigendum # 1

42 Clause 14.11.1- Rejection of bid –“Notwithstanding anything contained in this Tender Document, the State Government reserves the right to reject any bid and/or to annul the tender process and reject all bids at any time without any liability or any obligation for such acceptance, rejection or annulment, and without assigning any reasons thereof.”


43 Point 5.0 of Part C of Schedule V of the Tender Document “• Charagah/ Pasture Land - Sidwani, Ramkhera, Satkhand Block A: 134.825 Hectares”

Kindly Clarify whether the State Government can allot such portion of the land for mining activity?Also, whether in case of such land a swap exchange of the same is permitted by the State Government?


44 Point 2.0 of Part-A Schedule V- Information Memorandum It should be clarified as to what can be done with large part of the land being a non- mineralized area?Also, whether the non- mineralized land can be used for storage raw material for use in Cement plant, construction of Cement plant, Logistic facilities for transport, housing facilities for the for the employees of the lessee etc.


45 Clause to be added

As no specific information regarding the discovery of new major minerals, minerals specified in Part-B of the MMDR Act, 1957 or discovery of minor mineralsubsequent to grant of mining lease is provided in the tender document, we understand that Rule 7 and Rule 21 of the mineral auction rules shall be exercised in such circumstances. Kindly clarify that the above stated is correct.

Please refer clause no. 8.2 of tender document read with Mineral Auction rules 2015.

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46 Schedule I clause B (1)(c) “The corporate authorisation of the authorised signatory of the Bidder (which is a company) must be enclosed with the bid letter. 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. Any change in such corporate authorisation must be immediately intimated to the State Government.”

In case the bidder has authorized more than two persons, then how will multiple digital signatures be allowed on the MSTC portal. Kindly clarify the requirement and use of DSCs in case of multiple authorized signatories.

Please refer last para at page no. 51 of 126 (Schedule III of tender document).

47 Schedule to be added

Kindly provide the content and format of the Letter of Intent to be issued to Preferred Bidder.

Letter of Intent shall be issued as per Mineral Aucton Rules 2015

48 Value of Estimated Resource is determined based on the total estimated quantity of mineral resources for which the mineral block is been auctioned. However, estimated limestone resource for which the block is auctioned in the Tender Document is given irrespective of its use in Cement manufacturing. In the mine plan, the cement grade mineable reserve based on NCCBM norm could vary significantly than the quantity stated in the Tender Document. Kindly clarify on how the discrepancy will be resolved particularly w.r.t:1. Minimum Annual Production Requirement2. Total Mineable Reserve3. Upfront Payment linked with Total Value of Estimated Mineral Resource4. Performance Security linked with Total Value of Estimated Mineral Resource


49 Clause 12 – Timetable- Stage II Point 1: “Submission of all necessary clearances /approvals from various government agencies /departments by Successful Bidder”

Kindly clarify whether there is any time period for taking necessary approvals/ clearances that are mentioned in the Information Memorandum of the Tender Document after submission of the mining plan. Also, kindly clarify on how the Government will facilitate Successful Bidder in obtaining various approvals at State and Central Government level in a time bound manner.


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50 Schedule V- Information Memorandum-Point 3.0 of Part A- General Information about the Block

Kindly clarify whether the approving authority will relax the norms for approval of mine plan based on limited exploration upto G-3 level.

As GOI has already relaxed the norms, Mining Plan will be approved by IBM.

51 As per our understanding, the time period for development of mine after registration of mining lease, will be as per the approved mine plan. Kindly confirm whether the above understanding is correct.


52 Clause 13.1: “The Upfront Payment paid by the Successful Bidder shall be adjusted in full against the amount payable in accordance with the percentage of Value of Mineral Despatched quoted as the Final Price Offer within the first 5 years of commencement of production of mineral(s).”

Kindly clarify whether the time period i.e. 5 years of commencement of production of mineral(s) can be extended further in case the Upfront Payment does not get adjusted within the time period mentioned in Clause 13.1.

The clause no. 13.1 is self explainatory.

53 Clause to be added Kindly clarify whether the Government Land will be automatically transferred to the Successful Bidder after execution of mining lease.

No Land title of Govt. Land shall be transferred.

54 NA

Kindly clarify if there is any provision to surrender unutilized lease area.

Will be governed as per provisions of MCR 1960 & MMDR Act 1957 and amended from time to time .

55 Clause 3 (e)- Schedule F- Mine Development and Production Agreement: “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;”


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56 Clause 3 (f)- Schedule F- Mine Development and Production Agreement : “The Successful Bidder 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”

Since, the bidder is already complying with the specific provisions the Tender Document, the mentioned provision which is asking to provide an umbrella warranty covering any violation or default against any decree of any court or binding order of any Governmental Authority should not be covered under warranties.


57 Clause 8.1- “The conduct of mining operations at the Lease Area shall be subject to the milestones listed in SCHEDULE E with respect to production (the “Production requirement”) and the minimum annual production to be achieved every year.”

Kindly relax the provisions regarding Minimum Annual Production mentioned in the Tender Document and link the Minimum Annual Production to the requirement of End Use Plant

Bidder has to adhere min.annual production requirement as specified in Schedule E of MDPA

58 Clause 5 (d): “Not Applicable”

Kindly reserve the Concession Area for particular End Use.

No, no end use has been specified.


Kindly have separate policy for determination of sale price of limestone published by IBM for captive purpose and for commercial purpose.



Kindly provide the methodology/ basis of the sale price of mineral (grade-wise and state-wise) as published by IBM for such month of despatch in the Tender DocumentAlso, kindly add a provision to recognise change in methodology/ basis of the sale price of mineral (grade-wise and state-wise) as published by IBM for such month of despatch as Change in Law.Further, kindly add a provision to protect the interest of bidders from potential risk in the event of Change in Law.


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The State Government should appoint a Nodal Officer or Authority in the State for each mineral who shall be responsible to take decisions on behalf of the Government and facilitate the entire process process including consents, approvals, land acquisition etc.

Addition of new clause is not required

62 General

Kindly clarify the role of the State Government or Nodal Officer in facilitating procurement of land for setting up the Specified End Use Plant

No end use has been specified.

63 General

Kindly clarify whether the Successful Bidder will be allowed to transport the mined mineral outside the State boundary.

Yes, as no end use has been specified for the block

64 Information MemorandumGeological report has not been provided as part of the Information Memorandum request you to kindly provide the same.

Interested bidder may purchase detailed Geological report from Publication cell of the Department.

65 Clause 13.1: “The Upfront Payment paid by the Successful Bidder shall be adjusted in full against the amount payable in accordance with the percentage of Value of Mineral Despatched quoted as the Final Price Offer within the first 5 years of commencement of production of mineral(s).”

We understand that after commencement of production, the Successful Bidder will not be required to pay any monthly bid payment to the State Government till the Upfront Payment made is adjusted in full. Once the full Upfront Payment has been adjusted, the Bidder will make monthly bid payment as per the Agreement. Kindly confirm if the above understanding is correct.

The clause no. 13.1 is self explainatory.

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66 Schedule V- 2 (F) ( Page 88) Charagah/Pasture Land –33.76 ha. Private Land (Khatedari) –407.93 ha.

What is the State Govt. Policy for grant of Mining lease in Charagah/Pasture Land Consent of the Private Land (Khatedari) is required before entry in the Mining Lease area for Mining Operation. If private land owner is not inclined to give the consent for Mining Lease purpose. In that case what will be the State Govt Policy to made available the Private Land (Khatedari) for Mining Purpose.


67 Schedule V- 2 (h) (Page 88) Minerals under investigation- Limestone (Cement grade)

The investigated Mineral under Auction is Limestone (Cement grade). But the Tender is not reserved for particular end use of Cement Plant. Whether the tender is for grant of Limestone cement Grade for trading purpose ?

No end use has been specified for the block.

68 Schedule V- 3 (a) NH-79 passing through the area

Since, NH-79 is passing through the concession area under Auction, how much Limestone bearing area will be blocked?

As per statutory norms

69 Schedule V- 5 (c) (Page 90) Reliable geological map of appropriate scale with geocoordinates location of boreholes, The Geology of the area shown in plate no. 2 is differs with the geological formation shown in Plate no. 3 & 4. Which is to be considered for evolution of area? Based on Plate no. 4, most of the Bore holes drilled in Charagah/Pasture Land and reserves are estimated based on said bore holes. If said land is not available for mining lease in that case, what will be reliability of Reserves in rest of the area ?

This is mainly due to different types of scales used in different plate no.

70 Schedule V- 5 (e) (Page 94) The extent and variability of the mineralization expressed as length …..

The depth of the Limestone bend varies from 12 m to 85 m. but the economical viable depth is not shown. Whether entire depth is taken for resource calculation ? how far it is feasible ?

Actual feasibility has to be ensured at bidders end.

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71 Schedule V- 15 (c) (Page 94) The basis of the classification of the mineral resources into varying confidence categories.

Rule 8 of Minerals (Evidence of Mineral Contents) Rules 2015 is regarding estimation of reconnaissance Survey (334) and the quantity of data available is Generally not sufficient to allow any reasonable estimates of Mineral resource. The estimation of Geological Resource is how far reliable as G2 category ?

The information of category is fully reliable.

72 Schedule V- 15 (e) (Page 94) Detailed description of the method used and the assumption made to estimate tonnages and grade (section, polygon, inverse distance, geostatistical, or other method)

The block comprises 174.45 Million Tonnes Geological resource of limestone but Mineable Reserves and Reserves blocked in Statutory barrier, Villages and its Boundary, National highway, Rives/ Streams, Water Body. Public places etc not shown. The Resources are estimated as 174.45 Million Tonnes whether area of Old workings, existing mineral concession are excluded or not ?

Due consideration has been taken.

73 14.1.1 (b) (Page 19) Bid Security in form of a bank guarantee for an amount equal to INR 8,21,65,950/- in the format specified in Part C of Schedule I (Format of Bid Security), which shall be subject to Clause 15;

What are the basis for fixation of Bid Security amount ? Bid security is for 240 (180+60) days and issuance of LOI after payment of 1st installment of upfront amount is 08.03.2016 i.e. 64 day, so why bid security for 180+60days ? When bid security is released in respect to following a. In case of Technically not Qualified Bidders ? b. In case of Technically Qualified Bidders? c. In case of Technically qualified Bidder but not participating in second round e-auction ? What are the circumstances to forfeit the Bid Security ? Bid security in form of Bank Guarantee in favour of whom

Tender Condition Prevails.Bid Security shall be in favour :Director,Department of Mines & Geology ,Govt. of Rajasthan payable at Udaipur.

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74 9 , 9.1 (ii) (Page 14) sale price of the mineral (grade-wise and Statewise) as published by Indian Bureau of Mines for such month of despatch.

Sale price of the cement Grade Limestone is Rajasthan State is Rs. 564/tonne as published by IBM, whereas in market sale price is around Rs. 250-300/ Tonne. What is the basis of deriving the sale price just double than the market price ? What are the basis to arrive the Reserve Price at 14% (Fourteen percent) of Value of Mineral ?

This is arrived based on internal assessement which cannot be disclosed.

75 10.2 (c) (Page 16) ….Performance Security pursuant to the Auction Rules, valid for the period specified in the MDPA……..

At what stage Bank Guarantee is substituted by security deposit? What are the procedures for payment or refund at the time of re-assessment every five years? What about the final refund of the after completion of the Lease period ?

Tender Condition Prevails

76 4 (Page 62) Performance Security And Appropriation

If the minimum production criteria is not adhere or non compliance of the conditions due to reasons beyond the control of lessee such as approvals/ permission / NOC/ requisite license/ acquisition of private land / Charagah land NOC etc. in such circumstances how the provision of appropriation is applied ?

Please refer clause no. 4.3.1 of MDPA

77 Schedule I, B. (1) (d) (v) (Page 30) Particulars of mining lease, reconnaissance permit held by the Bidder for the purpose of section 6 of the Act.

If excess are permission under section 6(1) is required to be obtained from Central Govt. then at what stage to apply ?

Required, State Govt. will sumoto send the proposal for relaxation to GOI.

78 10.3 (Page 16) Execution of Mine Development and Production Agreement:

What is the time limit to execute the Mine Development and Production Agreement after issuance of Letter of Intent (LOI) and compliance of the conditions?

Please refer clause no. 12 of tender document.

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corrigendum # 1 to tender document and reply to pre bid queries for ...

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