PEC Limited (A Government of India Enterprise) “Hansalaya ...

1 PEC/WHEAT/EXP/28/2013-14 Page 1 PEC Limited (A Government of India Enterprise) Hansalaya , 15-Barakhamba Road, New Delhi-110 001, India Tel. No. (91-11)-23722886/23326588; Fax No. (91-11)-23322303/23327262 E-mail: AGRO COMMODITIES DIVISION TENDER FOR EXPORT OF WHEAT FROM KANDLA PORT TENDER NO. : PEC/WHEAT/EXP/28/2013-14 DATE: Tender Closing Time & Date: 1430 hours Indian Standard Time (IST) on Thursday, 23rd May 2013 Bid Validity: Price Bids must remain valid upto 1700 hours IST on Monday, 3rd June 2013 PEC Limited (PEC) INVITES BID(S) FROM OVERSEAS BUYERS FOR EXPORT OF 40,000 MT (+/- 10%) INDIAN MILLING WHEAT FROM FOOD CORPORATION OF India (FCI) STOCKS AT KANDLA PORT (WEST COAST, India ). The bids are invited from overseas buyers of wheat of Indian origin (Crop Year: 2012-13) stored in the godown(s) of FCI at Kandla port. The prospective buyers are requested to submit their bid(s) as per the following detailed terms and conditions of this Tender.

2 I. COMMODITY: Indian Milling Wheat (Crop Year: 2012-13). II. PACKING: Loose in bulk. III. SPECIFICATIONS: As per the table given below : The method of sampling is as per Indian standard, , BIS - IS 14818:2000, ISO 13690:1999 and procedure for analysis is to be followed as prescribed for Indian Wheat by Government of India as per BIS specifications IS:4333 (part I: 1996) (Second revision) reaffirmed January 2008. SR. NO PARAMETER SPECIFICATIONS 1 MOISTURE 12 PCT MAX 2 PROTEIN CONTENT PCT MIN 3 TEST WEIGHT 76 Kg/Hl MIN 4 GLUTEN (ON WET BASIS) 25 PCT MIN 5 FOREIGN MATTER/OTHER FOOD GRAINS PCT (FM : PCT, OFG: 2 PCT) MAX 6 SHRIVELLED/SHRUNKEN/BROKEN 6 PCT MAX 7 DAMAGED GRAINS/ WEEVILLED GRAIN 3 PCT (DAMAGED: 2 PCT, WEEVILLED: 1 PCT) MAX 8 FALLING NO. 400 PER SEC MIN PEC/WHEAT/EXP/28/2013-14 Page 2 The definitions of the above refractions are as prescribed in BIS - IS 2813:1995. Wet Gluten shall be determined on flour (maida) basis. The sieve size to be used for making flour shall be 150-155 microns.

3 The procedure to be followed for determination of wet gluten is ICC Standard No. 155 and No. 158, AACC Method No. 38-12. IV. QUANTITY OF EXPORT: Maximum quantity that may be quoted by the Bidder for Kandla port is 40,000 MT (+/- 10% at Buyer s option). The bidders to quote for a minimum quantity of 40,000 MT (+/- 10%). V. SHIPMENT PERIOD: 1st June 2013 to 20th June 2013 VI. PRICE: To be quoted in US$ PMT FOBST Kandla port in bulk. VII. QUANTITY WEIGHT /QUALITY: Independent inspection agency nominated by the SUCCESSFUL BIDDER (Buyer) at Seller s (PEC) cost shall inspect cargo(es) at FCI godowns at port locations and mark the stocks/stacks and hand over the cargo(es) to nominated CHA of PEC for onward movement and loading into the Vessel(s). The same inspection agency shall supervise the movement of cargo(es) from FCI godown(s) till loading into the vessel(s).

4 The Inspection Report issued by same independent agency for quality at FCI godown(s) and quantity at load port shall be final and binding on both the parties. VIII. FUMIGATION: The cargo(es) shall be treated with fumigant Aluminum Phosphide @ up to 12 g PMT, intensive piping method, without motors. For any other fumigations requirement, the bidder to bear additional charges. IX. INSURANCE: Appropriate insurance, including but not Limited to marine and war risks, strikes, riots, civil commotions risks to be effected by the Buyer with first class underwriters and/or approved companies at their cost. Buyer shall supply Seller with confirmation and relevant details thereof like name of insurance company, insurance policy number, sum insured, validity, etc. at least 5 consecutive days prior to expected readiness of vessel(s). If Buyer fails to provide such confirmation Seller shall have the right to place such insurance at Buyer s risk and expense.

5 X. PAYMENT: Buyer shall open, within a period of 7 days from the date of Letter of Award against this tender, an irrevocable and operative Letter of Credit (L/C) from prime/first class bank. The L/C shall allow part shipment. The L/C shall be payable at sight for 100% value allowing TT reimbursement, within 3 working days, on confirmation by the negotiating bank to the L/C opening bank that following L/C compliant documents have been received : PEC/WHEAT/EXP/28/2013-14 Page 3 a. Commercial Invoice in Quadruplicate; b. Full set of Clean shipped on board Ocean Bill(s) of Lading; c. Certificate of Origin issued by a recognized Chamber of Commerce in India in Triplicate; d. Certificate of Weight and Quality issued by nominated Inspection Agency; e. Fumigation Certificate; f. Phytosanitary Certificate; Full set of documents shall mean to include only the above documents and any additional document(s), if required by the buyer, shall be outside the purview of the L/C and PEC shall arrange such document(s), if possible, at buyer s cost.

6 All Banking charges in India to be for Seller s account and all Banking charges outside India are for Buyer s account. XI. BID BOND : The bids shall be accompanied by a BID BOND, as per the attached BID BOND Proforma (Annexure-1) or Demand Draft made out in favour of PEC Limited payable at New Delhi, India , for at least 2% value of the bid, in US Dollars only. Bid Bond shall be valid for a period of 30 days beyond the bid validity. Bid Bond/demand draft shall be returned to the unsuccessful bidders. The Bid Bond/Demand Draft shall not carry any interest. XII. PERFORMANCE BANK GUARANTEE: The successful bidder (Buyer) is required to establish Performance Bank Guarantee (PBG) for 2% value of the contract (including + 10% tolerance), within five (5) working days from the date of Letter of Award and valid upto Friday, 20th December 2013. Upon acceptance of PBG, the Bid Bond/Demand Draft shall be returned and shall not carry any interest. The BID BOND/Demand Draft of the successful bidder shall be forfeited/encashed without any notice if the successful bidder fails to furnish the required Performance Bank Guarantee within stipulated time period as above.

7 The PBG should be in the prescribed format (Annexure-II) from or through any Nationalised/Prime/First class Bank and issued by their correspondent Bank in India and the PBG should be encashable at the bank s counter on first demand. The PBG shall be released on completion of Foreign Contract signed between buyer and seller (hereinafter referred to as Contract ) in all respects. Invocation of Performance Bank Guarantee: (i) PEC reserves the right to invoke the Performance Bank Guarantee if the successful bidder (Buyer) commits any breach of contract or fails to fulfill any term(s) or conditions of the Contract. (ii) The Performance Bank Guarantee shall be released on successful and satisfactory execution of the Contract. No claim shall be admissible against PEC in respect of interest on Performance Bank Guarantee regardless of the time of its release. PEC/WHEAT/EXP/28/2013-14 Page 4 XIII. SHIPPING TERMS: 1. Buyer shall nominate seaworthy vessel(s), and intimate the following details of the vessel(s) at least ten (10) days prior to its arrival at the load port : Name of the vessel(s); ex-name(s) if any; Type of vessel(s); Flag of vessel(s); Year & month of built/Age of vessel(s); Classification - Lloyds Register or Equivalent; GRT/NRT/DWT; LOA; Beam; Holds/hatches; Number of hooks (in case of geared vessel(s)); Type, condition and capacity of gear/derricks/cranes; Name of Charterer/Disponent owners with full name Details of P&I club for owners/charterers for cargo(es) indemnity cover current and validity of planned voyage; Hull insurance particulars and validity of cover.

8 Particulars of performance of vessel s previous two voyages in immediate past, if performed. Immediately on receipt of nomination of the vessel(s), the seller would check the details of the vessel(s), if found workable, the acceptance would be conveyed. 2. The buyer should ensure that the vessel is nominated well within the contractual shipment period since the seller will not be in a position to accept any extensions for the shipment period, to avoid resultant effects on subsequent wheat export programme from the port. 3. Nominated Vessel(s) shall not be over 20 years of age. The vessel(s) hatches shall be dry and clean and fit for loading cargo(es) duly certified by the nominated surveyor. The nominated vessel(s) must be such that it can safely enter, berth, load and sail from load port(s) to open sea. 4. The nominated vessel(s) should be geared. Gearless vessel(s) shall be allowed subject to acceptance of port and PEC s CHA, and if accepted, the vessel(s) should provide free power to the grab(s).

9 Hiring charges for Crane(s) and/or grab(s) and/or any other equipment, as required, if any, shall be according to the port/CHA regulations and to the buyer s account. The vessel(s) should be a bulk carrier(s). No twin decker vessel(s) shall be accepted. 5. The nominated vessel(s) should have a clean record with no pending historical issues/disputes at Kandla Port or any other port in India . The seller shall not be responsible for any consequences arising out of dubious history of the Shipping Company and/or the vessel(s) nominated by the buyer. The seller shall be fully indemnified against any damage/loss incurred due to any such historical/pending issues/disputes in this regard. 6. Buyer shall ensure that vessel(s) fixed have full marine insurance cover for hull and machinery and P&I Insurance with P&I Club in the International Group of Clubs or in case of Chinese flag vessel(s) PEC/WHEAT/EXP/28/2013-14 Page 5 with China Ship owners Insurance Brokers and Protection and Indemnity Club to the effect that on the date of fixture the vessel(s) possesses hull and machinery insurance and full P&I Insurance cover liability of the owner and or the Charterers.

10 7. Vessel(s) of a minimum capacity of 40,000 MT of bulk cargo shall load at an average rate of 8000 MT PWWD of 24 consecutive hours SHEXEIU for both geared and gearless vessel(s) or as per charter-party, whichever is lower. For vessel(s) smaller than 40,000 MT of bulk cargo carrying capacity, a load rate of 6000 MT PWWD SHEXEIU, or as per charter-party, whichever is lower, shall apply. The above is based on 5 working hatches and 4 hooks being made available for loading. If less than 5 workable hatches and/or 4 hooks are made available, load rate shall be reduced pro-rata. 8. As the Cargo under the tender is offered through special provision and coming out of Government (FCI) Stocks, it is necessary that the vessel(s) nominated for loading of these cargoes transacted through PEC/FCI tenders must be exclusively for the quantity contracted in the tender. No Co-mingling of other wheat or any other commodity cargoes is permitted.