Expression of Interest

Size: px

Start display at page:

Download "Expression of Interest"

Marshall Evans
6 years ago
Views:

1 Expression of Interest (Advertisement to be published in the Newspapers) Sub: Expression of Interest ( EOI ) for appointment of Rolling Mills (RM) for Conversion of Billets into CTD/TMT Rebars and Structurals in Sri Lanka. Rashtriya Ispat Nigam Ltd., Visakhapatnam Steel Plant, Visakhapatnam, Andhra Pradesh, India, invites EOI from interested existing Rolling Mills RM for conversion of RINL Billets into CTD/TMT Rebars and Structurals in Sri Lanka. The product details, scope of work etc. are placed in the web site. Interested parties may please submit their offer with complete details of the facilities, valid licence, unit capacity, conversion rate, etc. Details of EOI can be downloaded from pages Exports - Filled in EOI can be submitted to the undersigned on or before 5.00 PM on 07/10/2013. Dy General Manager (Mktg) Exports-IMD Marketing Department, Exports Division, Admn Building RINL, VSP, Visakhapatnam Pin , AP, India. Phone: rinlexp@vizagsteel.com.

2 Invitation for Expression of Interest A. The Company: Rashtriya Ispat Nigam Ltd. (RINL), incorporated on 18th Feb, 1982, operates Visakhapatnam Steel Plant (VSP), which is India s first port based integrated steel plant located at Visakhapatnam in Andhra Pradesh, India. It is wholly owned by the Government of India under Ministry of Steel. It is a modern integrated steel plant with State of the Art facilities including captive power plant, airseparation plants and auxiliary facilities. Well laid out with basic infrastructure and in possession of land for facilitating expansion upto 20 mtpa or more. VSP is a leading producer of longs in India and caters to the construction, wire drawing, forging, foundry and rerolling industries and enjoys a strong brand image in all major markets. The plant is located in the proximity of two major ports, Visakhapatnam Port Trust (VPT) and Gangavaram Port Limited (GPL) with GPL being the deepest port in India with 21 Mtrs draft and modern mechanised unloading facilities for fast turnaround of large cape size vessels. It has dedicated berths for RINL. RINL is surrounded by a large network of rail and road linkages with the National Highway5 passing along the plant boundary thus offering good logistical infrastructure. B. Capacity of VSP, RINL RINL is now nearing completion of its expansion plan to 6.3 Mt per annum capacity. Major facilities including expansion are as under : a) Coke Ovens 4 Nos of Batteries of 7 mtr tall ovens with each battery consisting of 67 ovens. b) Sinter Machines 2 Nos of 312 Sq mtr area and 1 No. Of 400 Sq mtr area. c) Blast furnace - 2 Nos. Of 3200 cum volume and 1 No of 3800 cum volume. d) Steel Melt Shop - 5 LD Converters of 150 tonne heat weight. 6 Nos of Bloom Casters with 4 strands each, 2 Billet Casters with 6 strands each and 1 Roundcum-Billet Caster with 6 Strands (Bloom Size : 250x250 mm, 250x325 mm, Billet Size : 150x150 mm, 200x200 mm and Rounds 220mm, 280 mm and 350 mm) e) WRM-1 : Capacity : 10 lakh tonnes per annum : Sizes 5.5 to 14 mm WRC and 8, 10 & 12 mm Rebars f) LMMM : Capacity : 9 lakh tonnes per annum : Sizes 16 to 36 mm Rounds/ CTD/TMT Rebars g) MMSM : Capacity 10.8 lakhs per annum : Sizes : 40 to 80 mm Rounds, Structurals upto 200 mm, and Squares 65, 75 & 90 mm. h) Wire Rods Mill-2 : Capacity : 6 lakh tonnes per annum : Sizes 5.5 to 20 mm i) Special Bar Mill : Capacity : 7.5 lakh tonnes per annum : Sizes 16 mm to 40 mm Bars both in coils and straight lengths j) Structural Mill : Capacity : 7 lakh tonnes per annum, Product mix : Medium Structurals-Angles, Channels and Beams in the Sizes of 55 mm to 175 mm

3 In the Steel Melt Shop Secondary Refining facilities are provided to facilitate production of various grades of value added steel. The important facilities are as under : i) RH Degassing Unit This is an extremely efficient means of mixing and homogenizing the liquid steel in the ladle & floatation of non metallic inclusions particularly alumina. It can bring down the hydrogen level in the liquid steel to around 2 ppm from a level of 6 ppm. ii) Electro Magnetic Stirrer Homogenization of chemistry across the cross section and along the length of the cast product thus avoiding segregation. Due to this, the end product will have same mechanical properties throughout the length. iii) Hot Metal De-sulpherization Plant (HMDP) The sulphur level of the hot metal can be brought down to 0.005% from a level of 0.04% %. Apart from manufacturing mild steels, the above facilities help in production of various special steel grades like low carbon, medium carbon and high carbon steels, spring steels, low alloy steels (chromium, vanadium, molybdinum, nickel, etc.). Further, it is also envisaged to produce API grades for manufacturing of tubes. C. Objective of E O I The scheme envisages entering into a contract with existing Rolling Mills (RM), who would be interested in conversion of RINL Cast Billets and MMSM Billets into CTD/TMT Rebars and Structurals in Sri Lanka. RINL Products ( Raw material) Finished products ( Converted ) 1. MMSM Billets MS Grade(IS2830) 65x65 / 75x75 / 90x90 mm 2. Cast Billets MS Grade(IS2830) 125x125, 150x150 mm 1. CTD/TMT Rebars Fe 500 / Fe 500D Size 8 mm to 32 mm 2. Structurals MS Grade Size 50 mm to 75 mm Equal & Unequal Angles / Channels / Flats / Joists

4 D. Scope of RINL / VSP RINL shall arrange to despatch material on FOB Visakhapatnam basis at RINL s cost. a) Inspection of material at Plant and Port by third party Inspection agency. b) Loading at Plant and transporting material to Port c) Unloading from vehicle and stacking at Port d) Loading into vessel E. Scope of Work of Rolling Mills (RM) as follows: I. Activities in Visakhapatnam (India) a) Chartering of the vessel is in the scope of Rolling Mill b) Shipping to Colombo II Activities at Colombo Port a) Unload RINL Billets at Colombo Port, obtain Customs/Port clearance and complete all formalities at Colombo port including payment of import duties etc, if any, for shifting of Billets to Rolling Mill (RM). b) Loading into vehicles and transportation of material from Port to Rolling Mill. III. Activities at Rolling Mill (RM) a) Receiving material at RM, unload material from vehicles and stack for conversion. b) Conversion of Billets into finished products as per RINL s requirement c) Stacking of finished products at safe/protected place at RM and load into vehicle for sale/despatch after weighment. d) Preparation sales documents & MIS reports. e) Assist to complete formalities like payment local taxes and duties etc. F. Period of Agreement shall be for a period of minimum 2 years extendable by 1 more year. G. Invitation RINL invites Expression of Interest from the interested existing Rolling Mills (RM) for conversion of RINL Billets into CTD/TMT Rebars and Structurals in Sri Lanka as indicated at C above and scope of work as mentioned at D above. The party shall have minimum 3 years experience in conversion of Billets into CTD/TMT Rebars and Structurals and having valid licence for production. Such EOI may include i) Outright purchase of Finished (converted) products, if required, for party s own trading purpose at the rate decided by RINL.

5 ii) Any other Business proposal. H. Interested parties can fill in application form-1 and form - 2 along with the details of business activities of the firm to be submitted to the following address on or before 5.00 PM on 07/10/2013. I. EOI submission address : Dy General Manager (Mktg) Exports-IMD Marketing Department, Exports Division, Admn Building RINL, VSP, Visakhapatnam Pin , AP, India. Phone: rinlexp@vizagsteel.com. J. Disclaimer: The issue of this document does not, in any way commit, or otherwise oblige RINL to proceed with all or any of the proposals received. The EOI request is not the subject of any process contract or any contractual obligation between RINL and the applicant or potential applicants. RINL may at its absolute discretion, elect to abandon any part or whole of the process without giving prior intimation to the applicant or potential applicants. RINL reserves the right to consider or reject any proposal at any point of time without assigning any reasons, whatsoever. *****

6 FORM - 1 Profile of the organisation (To be filled by party) A. Organisation's profile Name of the Unit and Address: Address for communication: Contact person(s) with their , contact number, FAX etc. Nature of the constitution of the Organisation / Unit: Date of establishment and Licence no/validity: Annual Capacity of Unit Experience in Conversion products: Experience in trading, if any Annual Turnover and other financial data: Existing manufacturing products and production per day: Any other related information:

7 FORM - 2 Conversion charges plus Chartering of vessel, shipping to Colombo, unloading from vessel, Customs Clearance & other activities as mentioned at E above Sl. No. Input raw material Finished products Size (mm) Conversion charges (USD/MT) * All operations listed out in E-I, II & III (USD/MT) Total amount (USD/MT) ) MMSM Billets 65/75/90 MS grade IS 2830 a) CTD / TMT Rebars b) Structurals 8-32 Angle Channel 2) Cast Billets 125x125 / 150x150 MS grade IS 2830 a) CTD / TMT Rebars b) Structurals 8-32 Angle Channel * Customs duty, NBT and other taxes may be shown separately 5% burning loss is allowed

Expression of Interest

Expression of Interest (Advertisement to be published in the Newspapers) Sub: Expression of Interest ( EOI ) for appointment of Steel Processing Units (SPU) / Rolling Mills (RM) for Conversion of Billets