GLOBAL EXPRESSION OF INTEREST (EOI) FOR BUSINESS CO OPERATION IRON ORE BENEFICIATION PLANT AND PELLET PLANT

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GLOBAL EXPRESSION OF INTEREST (EOI) FOR BUSINESS CO OPERATION in IRON ORE BENEFICIATION PLANT AND PELLET PLANT BHARAT HEAVY ELECTRICALS LIMITED, (A Government of India Undertaking) Industrial Systems Group Business Group II Marketing Prof C.N.R Rao Circle, IISC Post, Malleswaram Bangalore, India 560 012 NIT: ISG/EOI/OB & PP/2014 Date: 28 March 2014

Date: 28 March 2014 Global Expression of Interest (EOI) for Business co operation in Iron Ore Beneficiation Plant & Pellet Plant. Global Expression of Interest (EOI) for Business co operation is invited from reputed Companies in the field of Iron Ore Beneficiation Plant and Pellet Plant as consortium partner for joint bidding to address forthcoming tenders on EPC basis. Bharat Heavy Electricals Limited (BHEL) BHEL is a premier Government of India owned engineering and manufacturing enterprise catering to the requirements of the core infra structure sectors of the Indian economy viz. energy (generation of fossil, gas and hydro, transmission and distribution) transportation and industry. Incorporated in 1964, BHEL has entered the Golden Jubilee (50 th ) year of its illustrious past. BHEL has emerged as Inida s largest engineering enterprise and attained the coveted Maharatna status. BHEL supplied equipments account for nearly 61% of the total thermal generating capacity installed in the country. The company has 17 manufacturing units, 4 power sector regions, 8 service centers, 10 overseas offices and 15 regional offices, besides host of project sites spread all over India and abroad. BHEL today is amongst world s rarest few who have the capability to manufacture the entire range/type of power equipments. BHEL has also established its presence in 76 countries across the world, emerging as India s industrial ambassador to the world. The annual turnover of BHEL for the year 2012 13 was US $ 9.22 Billion (INR 501.57 Billion), with Net Profit of US $ 1.22 Billion (INR 66.15 Billion). BHEL s highly skilled and committed manpower of approximately 48000 employees, the best of manufacturing facilities and practices together with the latest technologies, has helped BHEL to deliver a consistent track record of performance. With the current order book exceeding US $ 21.16 Billion (INR 1,151 Billion), BHEL is poised for excellent future growth. To provide its customers with the state of the art products, BHEL has over the years entered into several technical collaboration agreements with leading manufacturers. Our ongoing major technology tie ups include agreements with GE, USA (for gas turbines); Siemens, Germany (for steam turbines, generators and condensers); Metso Automation Inc., Finland (for control &instrumentation); Alstom, France (for Super Critical Boilers & pulveriser); MHI, Japan (for pumps & FGD); Vogt Power International, USA (for HRSG); GENP, Italy (for compressors); Turbo Lufttechnik, Germany (for fans) and Sheffield Forge masters International, UK (for forgings). More details about the entire range of BHEL s products and operations are available at the web site www.bhel.com Industrial Systems Group (ISG) For over three decades Industrial Systems Group (ISG), a Unit of BHEL at Bangalore, India, has been providing turnkey solutions in the areas of Metallurgical & Non Metallurgical industries, Mining & Bulk Material Handling, Water Management Systems, and Power Distribution. ISG has been in the fore front in providing Total Business Solutions to Customers through its system integration capability by offering complete turnkey (EPC) project execution of civil & structural works, mechanical equipment, electrical equipment, instrumentation, automation systems and auxiliary systems from 'Concept to Commissioning and beyond' including Design, Engineering, Procurement, Supply, Erection, Commissioning and Services after Sales. EOI FOR BUSINESS CO OPERATION in OB & PP DATE OF ISSUE: 28 March 2014 PAGE: 2 OF 5 REV: 00

Date: 28 March 2014 Global Expression of Interest (EOI) for Business co operation in Iron Ore Beneficiation Plant & Pellet Plant. For the Bulk Material Handling area ISG offers system integration of: Complete Coal Handling Plant in Thermal Power Plant and Raw Material Handling system in Steel Plant consisting of Conveyor Systems, Stacker Reclaimer, Wagon Tippler/Paddle Feeder, Apron Feeder, Primary & Secondary Crushers, Travelling Trippers, Auxiliary Systems etc. on turnkey basis including Civil & Structural, Mechanical, Electrical works, Instrumentation and Automation systems. BHEL ISG has already completed 13 projects successfully and 7 projects are under execution. Complete Ash Handling Plant comprising mainly Bottom Ash System, Dry Fly Ash Transportation & Storage System, Ash Slurry Disposal System, Ash Water Recovery System etc. on turnkey basis including Civil & Structural, Mechanical, Electrical works, Instrumentation and Automation systems. BHEL ISG has already completed 12 such projects successfully and 8 projects are under execution. Further, ISG has been providing Design, Engineering, Supply and Installation of Electrics, Drives, Control, Instrumentation, Automation & Auxiliary Systems, since its inception in 1977 for all plants / mills / process lines in steel plant complex and has been providing integrated systems with Turnkey Solutions to almost all Steel Plants in India in association with Major International Mill builders. Thus BHEL ISG has acquired the necessary in depth knowledge and experience for handling Indian Steel Projects. BHEL ISG have been accredited to Quality Management Systems (ISO 9001:2008), Environmental Management Systems (ISO 14001:2004), and Occupational Health & Safety Management Systems (OHSAS 18001:2007). Further, towards business excellence, ISG is practicing TQM philosophy EFQM model. More details about BHEL ISG operations are available at the web site www.bhelisg.com. Indian Steel Industry India is the 4th largest steel producer in the world and aiming to be 2 nd largest producer. Indian steel industry is passing through a high growth phase. While the existing big players are expanding their capacities on large scales, the small and medium companies have drawn up big investment plans. Not to be left behind, a number of foreign steel majors have also signed MoUs for setting up mega steel plants in India. With the projected steel production, the requirement of iron ore is expected to be around 500 million tonnes per year. It is estimated that more than 600 million tonnes of Iron ore fines dumps are available across India. Hence to utilize the iron ore fines dumps and to conserve mineral wealth, it is essential to beneficiate and recovers the additional iron values from these fines & slimes. Further to encourage optimum utilization of iron ore resources of the country and to improve domestic utilization of low grade iron ore and fines through beneficiation and pelletization, import duty on plants and equipments used for initial setting up and substantial expansion of beneficiation and pelletization plants was reduced from 7.5% to 2.5% in the General Budget 2012 13. EOI FOR BUSINESS CO OPERATION in OB & PP DATE OF ISSUE: 28 March 2014 PAGE: 3 OF 5 REV: 00

Date: 28 March 2014 Global Expression of Interest (EOI) for Business co operation in Iron Ore Beneficiation Plant & Pellet Plant. With the growth in the steel plants and together with favorable government policies, there is a great potential for Iron Ore Beneficiation and Pellet plants in India and anticipated potential are indicated below. Market Potential anticipated up to 2017 (1) US$ Million 1 Iron Ore Beneficiation Plant 2 Pellet Plant (2) (2) 1,613 1,613 (1) 1 US$ = 62 INR (2) Working group on steel industry for 12 TH Plan up to 2017 Intent of Expression of Interest (EOI) To address the growth in the steel sector, BHEL ISG is expanding its operations in steel industry and initiated to diversify in the field of Iron Ore Beneficiation and Pellet Plant Projects by participating in association with suitable reputed Company as a Consortium partner on EPC basis. The scope of the Consortium partner shall be to provide latest and proven technology for setting up of Iron Ore Beneficiation and Pellet Plants as per the scope mutually agreed upon. Scope of Co operation BHEL invites proposals from reputed Companies having demonstrated Technical knowledge & experience and excellent track record in the relevant field across the globe to join hands with BHEL as a Consortium partner to address the forthcoming tenders in the field of Iron Ore Beneficiation Plants and/ or Pellet Plant Projects on EPC basis. The scope of co operation should be adequate to qualify & to bid for the tender on EPC basis to design, manufacture, installation, commissioning, and performance guarantee and after sales service of the plant(s). The detailing of scope division / responsibility matrix, terms & conditions can be discussed and mutually agreed upon. Language for EOI and Communication Language of EOI and Communication shall be English. In case any document submitted is in any language other than English, authenticated English translation of the same shall also be enclosed. We invite interested reputed companies to submit their proposal either for individual plant or for both plants as per following documents; 1. Iron Ore Beneficiation Plant Details as given in Annexure I 2. Pellet Plant Details as given in Annexure II Due date for submission of EOI along with duly filled in documents, as applicable is 28 April 2014. EOI FOR BUSINESS CO OPERATION in OB & PP DATE OF ISSUE: 28 March 2014 PAGE: 4 OF 5 REV: 00

Date: 28 March 2014 Global Expression of Interest (EOI) for Business co operation in Iron Ore Beneficiation Plant & Pellet Plant. The EOI with complete details of Company like profile, technical features, catalogues, reference list for the projects executed, proprietary equipment and financial statements for last three years shall be sent to the following address/e mail: R.M.Savadatti Deputy General Manager (BG II/Marketing) Bharat Heavy Electricals Limited, Industrial Systems Group Prof C N R Rao Road, Malleswaram Bangalore, India 560 012 Contact No: Ph: +91 8022184567 Mobile: +91 9845691227 Email: rms@bhelisg.com Fax: +91 8023562713 Working Hours. IST: 08.00 to 17:06 Hrs Monday to Friday IST: 08.00 to 13.00 Hrs. on Saturday Please do not hesitate to call us / contact us in case you need any further information. NOTES: a. Please intimate your willingness immediately, if you are interested in the EOI. b. The company has to bear all expenses incurred in connection with participation in this EOI process. c. All enquiries / clarifications related to this EOI, must be directed to the contact person mentioned above. d. Further Corrigendum / Addendum to this EOI will be hosted on the websites www.bhelisg.com, www.bhel.com and http://tenders.gov.in. e. This EOI does not constitute an offer by BHEL. Without being liable for damages or obligations or assigning any reasons whatsoever, BHEL reserves the right to accept / reject any Expression of Interest (EOI) from companies. EOI FOR BUSINESS CO OPERATION in OB & PP DATE OF ISSUE: 28 March 2014 PAGE: 5 OF 5 REV: 00

Annexure-I GLOBAL EXPRESSION OF INTEREST (EOI) REQUIREMENTS - IRON ORE BENEFICIATION 1 Company Profile 1.1 1.2 1.3 Name & Address Web site Brief details of Organisation 1.4 1.5 1.6 1.7 1.8 Contact No. Subsidiary Details, if any Location of Business Units Details of Manufacturing Units Establishments in India Landline: Fax: Mobile No. : 2 1.9 Contact Person Details Quality Certifications, if any 2.1 2.2 Name, Designation & Address Email Id 2.3 Contact No. Landline: Fax: 3 Turnover and Financial details Turnover in Last Three Years in USD 3.1 Mobile No. : 2012-13 : xxxx USD 2011-12 : xxxx USD 2010-11 : xxxx USD 3.2 Financial details (Annual Reports etc.) Page: 1 of 3

Annexure-I GLOBAL EXPRESSION OF INTEREST (EOI) REQUIREMENTS - IRON ORE BENEFICIATION 4 Technical Competency 4.1 Technology / Process knowhow 4.2 Proprietary Equipment, if any 4.3 Maximum Capacity Installed which includes grinding, gravity and high intensity magnetic separation/ Flotation Hematite iron ore Magnetite iron ore xx Million TPA xx Million TPA 4.4 4.5 4.6 4.7 Performance Certificate (s), Details of Project (s), etc. Details of R&D efforts, if any Details of Patents & Copyrights, if any Technical write up elaborating the features and advantages of offered technology Details of atleast one project to be enclosed 5 Type of Expertise 5.1 5.2 5.3 5.4 5.5 5.6 Development of Process Flow Sheet Sizing of Plant / Equipment Detail Design Manufacture Project Execution Operation & Maintenance Services 6 Equipment Manufactured In-house In India Page: 2 of 3

Annexure-I GLOBAL EXPRESSION OF INTEREST (EOI) REQUIREMENTS - IRON ORE BENEFICIATION 7 Reference List of Projects Executed and In Progress 7.1 7.2 Globally India 8 Additional details, if any Note Language of Communication shall be English. In case any document submitted are in other language, authenticated English translation of the same shall be enclosed. Page: 3 of 3

Annexure-II GLOBAL EXPRESSION OF INTEREST (EOI) REQUIREMENTS - PELLET PLANT 1 Company Profile 1.1 1.2 1.3 Name & Address Web site Brief details of Organisation Landline: 1.4 Contact No. Fax: Mobile No. : 1.5 1.6 1.7 1.8 Subsidiary Details, if any Location of Business Units Details of Manufacturing Units Establishments in India 2 1.9 Contact Person Details Quality Certifications, if any 2.1 2.2 Name, Designation & Address Email Id Landline: 2.3 Contact No. Fax: 3 Turnover and Financial details 3.1 Turnover in Last Three Years in USD Mobile No. : 2012-13 : xxxx USD 2011-12 : xxxx USD 2010-11 : xxxx USD 3.2 Financial details (Annual Reports etc.) Page: 1 of 3

Annexure-II GLOBAL EXPRESSION OF INTEREST (EOI) REQUIREMENTS - PELLET PLANT 4 Technical Competency 4.1 Technology / Process knowhow 4.2 Proprietary Equipment, if any 4.3 Maximum Capacity of the plant Installed Hematite iron ore Magnetite iron ore xx Million TPA xx Million TPA 4.4 Process a) Straight Grate b) Grate Kiln 4.5 Cooler type 4.6 4.7 48 4.8 Performance Certificate (s), Details of Project (s), etc. Details of R&D efforts, if any Details of Patents & Copyrights, if any Details of atleast one project to be enclosed 4.9 Technical write up elaborating the features and advantages of offered technology 5 Type of Expertise 5.1 5.2 5.3 5.4 5.5 Sizing of Plant / Equipment Detail Design Manufacture Project Execution Operation & Maintenance Services 6 Equipment Manufactured In-house In India Page: 2 of 3

Annexure-II GLOBAL EXPRESSION OF INTEREST (EOI) REQUIREMENTS - PELLET PLANT 7 Reference List of Projects Executed and In Progress 7.1 7.2 Globally India 8 Additional details, if any Note Language of Communication shall be English. In case any document submitted are in other language, authenticated English translation of the same shall be enclosed. Page: 3 of 3