INVITATION FOR EXPRESSION OF INTERESTS (EOI) FOR SELECTION OF CO-DEVELOPER FOR DEVELOPMENT OF PLASTIC PARK IN CHHATTISGARH

INVITATION FOR EXPRESSION OF INTERESTS (EOI) FOR SELECTION OF CO-DEVELOPER FOR DEVELOPMENT OF PLASTIC PARK IN CHHATTISGARH Chhattisgarh State Industrial Development Corporation Limited (A Government of Chhattisgarh Undertaking) 1s Floor, Udyog Bhawan, Ring Road No.1, Telibandha, Raipur 492006 (CG) Phone : 0771-6002071-73, Fax:0771-2583794 Website : www.csidc.in, Email address: invest-chhattisgarh@gov.in, csidc.cg@nic.in

Contents PART I: PROJECT INFORMATION BRIEF... 2 A. BACKGROUND... 3 B. PROJECT OBJECTIVE... 4 C. Project Concept... 5 D. ROLE OF THE SPV... 6 E. ROLE OF CSIDC... 7 F. ENVISAGED ROLE OF THE CO-DEVELOPER... 8 PART II: INSTRUCTIONS FOR SUBMISSION... 9 PART III: FORMATS FOR SUBMISSION... 14 APPENDIX I: COVER LETTER... 15 APPENDIX II: DETAILS OF INTERESTED PARTY/APPLICANT... 17 APPENDIX III: DETAILS OF EXPERIENCE... 18 APPENDIX IV: FINANCIAL CAPACITY OF INTERESTED PARTY... 20 APPENDIX V: DETAILS OF PROPOSED FACILITIES... 21 1 P a g e

PART I: PROJECT INFORMATION BRIEF 2 P a g e

A. BACKGROUND 1. The State of Chhattisgarh has emerged as a lucrative investment hub among its competing states with sectors like power, mining and minerals, manufacturing, sponge iron and steel, IT and ITeS, biotechnology, food processing etc. becoming key investment drivers and has attracted both domestic and foreign investment over the past few years. The investment flow into the State has increased significantly in the past five years. Chhattisgarh attracted foreign direct investments in power, manufacturing, services, mining and construction sectors. The power sector attracted highest Foreign Direct Investment (FDI) of around 70 percent of total foreign fund inflow. The manufacturing sector garnered a share of 25 percent. Services (2.7 percent) and mining (2.1 percent) sectors attracted almost an equal share of FDI whereas construction sector has attracted 0.3 percent of FDI. The State is steadily garnering support from the investors, transforming it to a manufacturing and power hub of the country. While the State administration is based in Raipur, a new capital for Chhattisgarh at Naya Raipur has been developed. 2. Chhattisgarh state recognises some of the products in plastic industry as priority sector as per Industrial policy 2014-19. Chhattisgarh State industrial Development Corporation (CSIDC) intends to establish Plastic Park as per Plastic Park Scheme of Government of India in State to promote plastic industry in state. 3. As per the provisions of the Plastic Park Scheme (GoI), the Project shall be implemented by a SPV. Government of India shall also provide one time grant in aid to SPV for implementation of the project. 4. CSIDC desires to develop this park through participation from entities, organization, joint ventures, and consortiums having experience in plastic industry and/or development and management of the Industrial Parks. CSIDC along with selected codeveloper will submit application for in-principle approval to Government of India. Upon getting in-principle approval CSIDC will form SPV with Co-Developer selected through this process. SPV thus formed will undertake preparation of Detailed Project Report (DPR) for submission to Government of India for final approval, co-ordination with Central Government, financial closure of the project, development and implementation of the Plastic Park. The Co-Developer shall play a lead role in developing the project, bear development cost of the park and take up marketing & promotion of the park to attract investments from units in the plastic segment. 3 P a g e

B. PROJECT OBJECTIVE 1. To promote Plastic industrial units in the plastic park under the plastic park scheme of Government of India. 2. To provide ready to use land parcels complete with all support infrastructure for entrepreneurs/investors interested to set up units within the Park 3. To generate direct/indirect employment for the State and create likely export opportunities 4 P a g e

C. Project Concept 1. The proposed Park is to be developed as a state-of-the-art industrial Park for entrepreneurs in related businesses to set up new units within the Park. 2. The Park would be so developed so as to fulfil comprehensively the functional requirements in terms of common facilities, physical and social infrastructure amidst a green environment. Suggested components for the Park may include among others: Industrial Sheds / Plots Warehouses/Storage Facilities Common Facility Centers Tool Rooms Skill development centers and ITIs Landscaped (green) areas, Buffer Zones Truck Terminal and Parking facilities Common Raw Material Bank Testing R&D Facility Machine Repair Shops Plastic Recycle Units 3. Proposed support infrastructure facilities for the project to include: Reserved green space A systematic network of internal roads Regular supply of quality water with adequate storage facilities Reliable power supply to ensure maximization of production levels Underground utility lines Firefighting system Adequate Parking space for trucks/others Common effluent treatment and solid waste management facilities Sturdy storm water and Sewerage networks, Sewage Treatment Plant Common Rail Siding (if need be) Banks / ATMs / STD PCOs Public and Semi-public facilities including Emergency Health Services, Crèche, Public Health Centers etc. Efficient and professional service-oriented Operations & Maintenance system 4. Suggested products for proposed park may broadly include: Extrusion (Films and Sheets, Fibre and Filaments Pipes, Conduits and profiles, Miscellaneous applications) Injection Moulding (Industrial Injection Moulding, Household Injection Moulding and Thermo-ware/ Moulded luggage) Blow Moulding (PET Bottle containers, toys etc) Roto moulding ( Water tanks etc) Any other product in the industry 5 P a g e

D. ROLE OF THE SPV As envisaged in the Plastic Park Scheme the SPV shall undertake the following: 1. Preparation of the DPR for submission to Government of India with complete technical and financial details 2. Procure land for the project. 3. Achieve financial closure for the project including equity and debt 4. After developing the infrastructure, SPV would allocate sites to industry for setting up units. 5. Own and maintain the assets created under the Scheme 6. Levy and collect service/ user charges form the member enterprises for the facilities created 7. Appoint Business Development Service (BDS) provider/ contractors/ consultants for technical/ financial/ managerial functions. 8. Get all statutory approval and clearances from Government/ other bodies 9. Furnish requisite information/ filling regular progress reports to the Department/ other institutions 10. Utilize GOI grant only for the components mentioned in the sanction letter; any deviation would require prior approval of Government of India in writing. 11. SPV shall complete the setting up of the Plastic Park in a period of three years from the date of final approval. Land shall be procured by Co-developer for the project and be provided to SPV as equity contribution. 6 P a g e

E. ROLE OF CSIDC 1. Chhattisgarh State Industrial Development Corporation (CSIDC) is the State level nodal agency entrusted and empowered to develop infrastructure for industries in the State of Chhattisgarh. 2. Establishment of industrial areas, industrial estates, functional industrial estates, growth centers etc. at different strategic locations and to provide infrastructure therein are the prime functions of CSIDC. The infrastructure includes essential facilities such as roads, power, water, streetlights, proper drainage facilities, other amenities and social infrastructure. 3. CSIDC at present is playing a pivotal role in bringing in private capital for development of infrastructure projects in the State. Requisite escort services are being provided to investors/developers for implementation of infrastructure and industrial projects. 4. It has been identified as the key nodal agency of the State to implement various objectives of the new Industrial policy. 5. CSIDC has been identified as the nodal agency for developing industrial parks and industrial estates in Chhattisgarh. 6. CSIDC will participate as equity contributor for development of Plastic Park. 7 P a g e

F. ENVISAGED ROLE OF THE CO-DEVELOPER 1. In concurrence to the Plastic Park Scheme CSIDC is desirous of developing the project through induction of a capable partner as Co-Developer selected through a transparent bidding process. Overall efficiency, exposure in handling projects of similar nature and financial strength of the Developer are the key ingredients that would be desirable for CSIDC for the proposed project. 2. Land shall be procured by co-developer for the project. Co-developer will provide land as equity contribution to SPV. 3. Equity contribution of the co-developer should be 74% of the equity excluding land cost 4. The selected Co-developer shall play vital role: a. Market assessment of plastic industries in the park and preparation of DPR within timelines; b. All activities for obtaining Initial and final approval from Government of India under the Plastic Park Scheme; c. Funding commitment in the SPV for development of infrastructure in the Park; d. Implementation and management of the Plastic Park through the SPV; 5. Adequate flexibility is envisaged to be provided to the selected Co-Developer in developing the project provided certain minimum obligations in concurrence to the project requirements as conceived by CSIDC are fulfilled by the Developer. 8 P a g e

PART II: INSTRUCTIONS FOR SUBMISSION 1. PURPOSE 9 P a g e

1.1 The purpose of this Expression of Interest (EOI) is to create initial awareness about the Project in the market, identify potential Co-Developer who could bring land and be Co- Developer in the project and interested to join hands with CSIDC for implementation of the project. Subsequent to submission of the EOI Proposals, Applicants fulfilling the requirements as mentioned in this EOI shall be invited by CSIDC for interactions/ presentations based on which project contours including finalization of bid parameters, project structuring, finalizing the role of the co-developers etc shall be frozen and selection process shall be done. 1.2 CSIDC 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 EOI. The issue of this EOI does not imply that CSIDC is bound to undertake the Bidding Process and/or select and short-list pre-qualified Bids for Bid Stage or to appoint the selected Bidder or Developer, as the case may be, for the Project and CSIDC reserves the right to reject all or any of the submissions hereunder without assigning any reasons whatsoever. 1.3 The interested parties submitting their EOIs shall bear all costs associated with or relating to the preparation and submission of its EOI including but not limited to preparation, copying, postage, delivery fees, expenses associated with any demonstrations or presentations which may be required by CSIDC or any other costs incurred in connection with or relating to its EOI. 2. INVITATION CSIDC invites Expression of Interests (EOIs) from Entities, Organization, Joint ventures, Consortiums related with the plastic sector or Infrastructure developers having experience in developing such Industrial Parks (the Interested Parties ) to participate in EOI process for the proposed Project. Entities, Organization, Joint ventures, Consortiums having experience and exposure in developing such Industrial parks / Industrial clusters under any similar schemes of Government of India in PPP mode shall be preferred. 3. REQUIREMENTS TO PARTICIPATE IN THE EOI 3.1. CSIDC shall accept & consider only those EOIs from Interested Parties which meet the following minimum requirements: a) Land Requirement: Party should have a suitable land parcel of minimum area of 100 acres in state of Chhattisgarh for development of this plastic park; and b) Financial Requirement: Minimum net-worth of the INR 20 crore as on March 31, 2014; and c) Experience Requirement- Incorporated entities either should have at least five years of experience in manufacturing / processing in plastic sector Or Developed / constructed industrial parks / clusters in any sector on at least 50 acres land parcel with an investment of more than INR 50 Crores. Entities which have developed such parks under any scheme of the Government of India shall be preferred Net Worth for the purpose of this EOI process shall be refer & be computed as 10 P a g e

follows: [NETWORTH = Subscribed and Paid Up Equity Share Capital + Reserves & Surplus {Revaluation Reserves, Goodwill, Miscellaneous Expenses (to the extent not written off) and other Intangible Assets}]. 3.2. Interested Parties may participate in the EOI either singly or in a group in the form of a Consortium. In case of a Consortium participating in the EOI, the following additional requirements are required to be fulfilled. a) Number of members in a Consortium shall be limited to three (3); b) A Memorandum of Understanding (MoU) executed among the members shall be submitted as part of the EOI which shall include interalia the following: i. Joint intent of the members to participate in this EOI ii. Nomination of the Lead Member of the Consortium iii. Nomination for the Authorised Signatory for the Consortium iv. Outline of roles and responsibilities of either party in terms of participating in the Project if considered in future. c) One of the members shall be nominated as the Lead Member who shall individually fulfil at least 60% of the above mentioned Financial Requirement and Experience Requirement d) If selected, the members of the Consortium shall take stakes in the SPV. 3.3. Any member or single applicant who submits or participates in more than one EOI for this Project will be disqualified and will lead to disqualification of the Consortium of which it is a member as the case may be. 4. SUBMISSION OF EOI The EOIs to be submitted by the Interested Parties shall, interalia, include: (a) Cover Letter expressing interest to participate in the Project in the form and manner prescribed hereunder as Appendix I ( Additionally MoU to be submitted in case of a Consortium) ; (b) Details of Interested Parties in the form & manner as prescribed here under as - Appendix II; (c) Details of the land identified for the project and documentary proof of ownership/acquisition details. (d) Details of Existing Plants and Manufacturing Facilities / projects undertaken(applicable for Interested Parties which have experience in Industrial parks as infrastructure developers) the form & manner prescribed here under as Appendix III ; (e) Financial Details in the form and manner prescribed here under as Appendix IV; and (f) Project Report for Plastic Park including suggested components, broad costing, implementation methodology and role play of the Co-developer with time frame, project implementation framework, others in the form & manner prescribed here under as Appendix V. In addition to submission of the above, the Interested Parties may be required to make a 11 P a g e

presentation before CSIDC covering all the above aspects. 5. OUTCOME OF THE EOI All the EOIs applications meeting the Minimum Requirement shall be evaluated. The EOIs shall be evaluated based on the Project Report submitted by the Applicant. Shortlisted Applicants shall also be intimated to come for presentation / discussion with CSIDC on their proposal, understanding of the project and preparedness to undertake the activities of a Co-Developer. Thereafter, final selection of Applicants shall be done by CSIDC based on the capabilities of the Applicants and their proposals as follows Eligibility Criteria Average net worth of the promoters of SPV 35 INR 20 Crore 10 INR 21 Crore to INR 40 Crore 25 More than INR 40 Crore 35 Location of the project 15 Experience of the promoters of SPV in Plastic processing and manufacturing 40 30% of the promoters having experience 10 50% of the promoters having experience 20 100% of the promoters having experience 40 Area of the land 10 100 acres to 150 acres 5 More than 150 acres 10 Total 100 It is hereby clarified that CSIDC may, at its exclusive discretion, either invite detailed proposals only from those Interested Parties who had submitted their EOIs and were shortlisted in the process or from the open market. 6. EOI SUBMISSION DATE AND TIME 6.1. The Interested Parties should submit their EOIs, in the form & manners mentioned under Clause 4 hereinabove, along with non-refundable processing fee of Rs. 10,000/- (Rupees Ten thousand only) in the form of demand draft in favour of CSIDC, Raipur payable at Raipur and seal it in an outer envelope and mark the envelope as EOI for Development of Plastic Park in Chhattisgarh on or before 1700 hours (IST) latest by 15 th May, 2015. 6.2. The envelope shall clearly indicate the name and address of the Interested Party. All completed EOIs should be sent through registered/speed post/courier or by in-person at the address mentioned under Clause 7 herein below. Any EOI reaching after the stipulated date and time shall be returned unopened and no further communication from the concerned Interested Party in this regard shall be entertained by CSIDC. 7. CONTACT DETAILS 12 P a g e

7.1. The EOI should be addressed & submitted to Managing Director Chhattisgarh State Industrial Development Corporation Udyog Bhawan Telibandha Raipur-492006 Phone : +91 771-6002071-73 Fax : +91 771-2583794 Email : invest-chhattisgarh@gov.in URL : www.csidc.in 8. INDEPENDENT DILIGENCE & DISCLAIMER 8.1 CSIDC reserves the right to reject any or all EOI received without assigning any reason whatsoever and CSIDC shall not, in any manner whatsoever, be accountable liable for any claims of the Interested Parties or any other third party in that regard. 8.2 This Invitation for EOIs is not an agreement and is neither an offer by CSIDC to the Interested Parties or any other person. The purpose of this EOI process is to provide Interested Parties with information that may be useful to them in making their EOIs. Each Interested Party 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 EOI and obtain independent advice from appropriate sources prior to submission of its EOI. 8.3 This clause & the contents herein, is the essence of this EOI process for the proposed Project and shall be interpreted in the intent & spirit as mentioned herein. 13 P a g e

PART III: FORMATS FOR SUBMISSION 14 P a g e

APPENDIX I: COVER LETTER (ON LETTER HEAD OF ENTITY) Date: To, Managing Director Chhattisgarh State Industrial Development Corporation CSIDC Udyog Bhawan, Telibandha Raipur 492006 (Chhattisgarh) Sub: Submission of Expression of Interest (EOI) for - Development of Plastic Park in Chhattisgarh under the Plastic Park scheme of Government of India Dear Sir, 1 With reference to your EOI document dated, I/We, having examined the EOI Document and the Plastic Park Scheme thoroughly and understood its contents, hereby inform you that I/We am/are willing to submit proposal for the captioned project, subject to the invitation to offer made by you. With reference to the captioned subject, I/We the undersigned am/are hereby expressing our Interest to participate in the project. 2 We understand that the project shall be implemented under the Plastic Park scheme of the Department of Chemicals & Petrochemicals, Government of India subject to getting final approval. 3 We understand that the purpose of this EOI is to create initial awareness about the Project in the market and identify potential Developers interested for the projects. Further, the issue of this EOI does not imply that CSIDC is bound to appoint the selected Bidder, as the case may be, for the Project and CSIDC reserves the right to reject all or any of the submissions hereunder without assigning any reasons whatsoever. It is also hereby clarified that CSIDC may, at its exclusive discretion, either invite bids only from those Interested Parties who had submitted their EOIs or from open market. 4 We understand that we satisfy the minimum requirements to participate in this EOI as outlined in the EOI document and have prepared our expression of interest for the captioned project as specified in. 5 Further, we understand after evaluation of all the proposal received by CSIDC, CSIDC may shortlist suitable proposals and may ask for detailed proposals from shortlisted Applicants. 15 P a g e

(Name of the person) (In the capacity of) Company Seal (Name of the Entity) Duly authorized to submit the EOI to undertake the project, for and on behalf of (Fill in block capitals) Witness Signature Name Address 16 P a g e

APPENDIX II: DETAILS OF INTERESTED PARTY/APPLICANT S. No Particulars Details 1. Basic Information of Organisation a) Name of Firm b) Country of incorporation c) Address of the corporate headquarters and its branch office(s), if any, in India d) Date of incorporation and / or commencement of Business e) Ownership of the Organisation 1. 2. 3. f) List of current directors 2. Brief description of the Company including details of its main lines of business. 3. Details of individual (s) who will serve as the point of contact/communication within the Company: (a) Name (b) Designation (c) Address (d) Telephone Number (e) E-Mail Address (f) Fax Number 4. Particulars of the Authorized Signatory of the Applicant: (a) Name (b) Designation (c) Address (d) Telephone Number (e) E-Mail Address (f) Fax Number Memorandum and Articles of Association, Company Brochures to be attached 17 P a g e

APPENDIX III: DETAILS OF EXPERIENCE FOR Applicants with Industrial Experience DETAILS OF EXISTING FACILITIES Item Company Name Particulars of the Project Operating unit/ Office location and address: Date of Incorporation & date of commencement of operation Key contact person for unit with contact number and email id Nature of operations and product profile Existing set-up/ Built-up area and Land Area Annual Turnover Total no. of employees present with broad level details of technical/non- technical Expansion Plans if any Other details 18 P a g e

FOR INFRASTRUCTURE DEVELOPERS DETAILS OF DEVELOPMENT/ CONSTRUCTION EXPERIENCE IN INDUSTRIAL PARKS Item Particulars of the Project Title & Nature of the Project Scheme under which the Project was taken up Location Site area and facilities Date of commencement of project/ contract/ approval Date of completion/ Commissioning* Other details *To furnish completion certificates wherever applicable *The claimed experience shall be supported by documentary evidence i.e. completion certificates, commissioning certificates etc. 19 P a g e

APPENDIX IV: FINANCIAL CAPACITY OF INTERESTED PARTY Interested Party Name Tangible Net-Worth (In INR crore) on March 31, 2014 Instructions: 1. The Interested Party shall attach copies of Annual Reports for 3 (three) years preceding the EOI submission date. 2. Tangible Net-worth shall mean [Subscribed and Paid Up Equity Share Capital + Reserves & Surplus {Revaluation Reserves, Goodwill, Miscellaneous Expenses (to the extent not written off) and other Intangible Assets}]. 3. For any currency other than INR, appropriate conversion to INR may be made at the prevailing exchange rate as on the date of publication of the EOI Advertisement. 20 P a g e

APPENDIX V: DETAILS OF PROPOSED FACILITIES Item Land area Location of Land Transport facility near land Project Components Proposed Particulars of the Project Type of investments envisaged in the park Likely date of commencement of operations Handholding expected CSIDC and GoCG From Other requirements if any Note: 1. Relevant Map indicating Park Area should be produced along with site suitability analysis 2. Land ownership/acquisition details should be provide 3. Documents like lease deed/ letter of Intent/ land possession document should be provided. Format for Submission of Project Report A. Location of the Project: Detailed description of location Viability of location Connectivity with road/ rail network/ port etc. External Development around the proposed park Status of land (industrial land, agriculture land, residential land) Area of land Area earmarked for each unit, common services and open space Cost of land B. Common Facility along with justification and area proposed for each facility C. Internal and External Infrastructure (Roads, Railways etc.) D. Reasonableness of proposed construction cost for each of the above component of common facility and common infrastructure; Cost should not be more than CPWD norms for similar quality of construction E. Forward Backward linkages: Sourcing of raw material and other inputs for the units and market linkages for the finished products; F. Means of Finance and project budget: This section should cover Means of finance, evaluation of options, project t budget, cost estimates and phasing of expenditure G. Financial and economic analysis: Financial and economic analysis of the project may be undertaken where the financial returns are quantifiable. 21 P a g e

The following details should be provided for: Working capital and margin money Cash flow statement(projections for 10 years) Proposed debt service coverage ratio Balance sheet &P/L account (Projection for 10 years) Proposed debt-equity ratio Break-even analysis Return on Capital Employed(ROCE) Sensitivity Analysis Annual estimated income, expenditure, gross and net profit expected (Projections for 10 years) Payback period 22 P a g e