The state-owned RINL (Rastriya Ispat Nigam Limited) also known as Vizag Steel has introduced new condition of compulsory EMD (Earnest Money Deposit)/Security Deposit (SD) to be deposited from all the bidders that are participating in the Ocean export tenders with effect from 7 June 2018. Prior to this there was no such rule of EMD deposits for Ocean export tenders.
This EMD/SD is required to be deposited by the bidders before two international banking days of tender opening date.
EMD shall be collected from all the bidders while participating in the tenders with the following two options:
Option 1: To take EMD @ USD 6/MT for Steel and USD 2.55/MT for Pig Iron (the existing rates of Security Deposit), which will be converted into SD in case of the successful bidder.
Option 2: To take EMD for an amount of USD 1,00,000 for a minimum period of nine (09) months from the date of BG (Bank Guarantee). The successful bidder shall submit Security Deposit @ USD 6 PMT for Steel and USD 2.55 PMT for Pig Iron. This EMD shall be applicable for all the tenders floated during the six months from the date of EMD.
EMD/SD can be remitted in the form of BG (Bank Guarantee)/DD (Demand Draft)/TT (Telegraphic Transfer) remittance. Bids received without EMD shall be rejected without any reference.
The modified Ocean Export terms and conditions dated 01/07/2018 is attached here. Also, the new BG formats for the above mentioned two options are available in the attached PDF in Annexures 1 to 3. All the other terms and conditions will remain the same as previously mentioned in the pdf issued on 19 June 2015 which is available on RINL website.
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