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  • STATEMENT by MSIL in relation to import of Natural River Sand.

    By admin - Thu Jan 25, 5:55 am

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    Date 24.01.2018
    For the past two days in certain Newspapers Hon’ble Opposition Leader has alleged that a sum of Rs.5850 Crores has been misappropriated by MSIL in relation to import of Natural River Sand. This allegation is far from truth. At present MSIL has only imported a quantity of 935 MT of Sand from Malaysia to Bangalore with a value of Rs.37,00,000/- and the sale process has just commenced. While on above, any future imports depends only on future Market demand.

    The allegation of the Hon’ble Opposition Leader that a sum of Rs.5850 Crores has been misappropriated is a false allegation. The requirement of 180 lakhs MT of Imported Sand for the next 5 years would have a turnover of Rs.7000 Crores. This would amount to only a turnover not amounting to any misappropriation. Further, certain doubts have been expressed on the tender process, therefore following clarifications have been furnished.

    MSIL invited tender on State Government’s E-Portal for import of Natural River Sand on 25.05.2017. The tender was opened on 12.07.2017 and it was found that 2 Companies viz., M/s. Fiza Developers & Infrastructure Pvt. Ltd., and M/s. Posiden FZE, UAE had remitted EMD of Rs.1.50 Crores through RTGS.

    The tender was opened in the presence of both the Companies Counsellors/Representatives. M/s. Fiza Developers & Infrastructure Pvt. Ltd., had not up-loaded the valid documents. This information was communicated to M/s. Fiza Developers & Infrastructure Pvt. Ltd. Representative in writing and due acknowledgement was obtained from them.

    All the documents submitted by M/s. Posiden FZE, UAE were examined by the Tender Technical Committee for conformance with the tender terms and conditions and it was found to be in order. Consequently, the financial bid was opened (on 14.7.2017). M/s. Posiden FZE, UAE had quoted Rs.2300/- per MT of Sand, which includes cost of Sand, dredging cost, loading to the ship expenses, Sea transportation expenses, import duty, unloading wharfage, stevoding, other port expenses, storing and bagging cost, and also loading on to Railway rakes.

    The agreements entered between M/s.Posiden FZE, UAE and its Consortium Companies were examined. Since this is the first time a tender of this nature has been floated in the Country, the tender conditions mandated the bidders or Consortium Partners to have the following arrangements and capabilities.

    a) The tenderer or their associates / subcontractors should have either Imported or should have been directly associated with the management / execution of the import of at least 1,00,000 Metric tons of Natural River sand into India in any one of the last 5 years for which, documentary proof should be furnished. The tenderer or their associates / subcontractors, claiming credit on the above mentioned imports, should not have any pending litigation before any jurisdictional courts in India.

    b) Tenders of tenderers quoting as authorized representative of a quarry owner / Sourcing agent, meeting with the above requirement in full, can also be considered provided:

    (I) The quarry owner/sourcing agent furnishes authorization in the prescribed format assuring full guarantee and warranty obligations as per GCC and SCC.

    c) The tenderer should furnish the information on all past supplies and satisfactory performance for both a) and b) above, in pro-forma under Section XII.

    The tenderer will have to produce / evidence:
    d) A valid Port Service Agreement.
    e) The importing Port should have a Cape vessel handling capacity.
    f) The importing Port must provide a certificate allocating a dedicated storage to store 1 MMT of Sand or the Tenderer should have a storage capacity of at least 200 acres of open stockyard within 5 kms from the importing Port for which appropriate document should be provided.
    g) Storage allocation certificate from the Port.
    h) The importing Port should have a dedicated Railway siding for handling sand and the Tenderer should submit a Siding allocation certificate from the Port.
    i) The importing Port should be well connected by Rail and Road to all the Districts of Karnataka.
    j) The importing Port should have AEO qualification (Authorised Economic Operator)
    k) The importing Port / the bidder should have an installed sand bagging facility of at least 12000 MT / day capacity.
    l) Capability to supply One Crore PP bags per month with the Bag manufacturing facility, preferably, located close to the importing Port.
    m) The bidder should submit necessary documentary proof pertaining to the conditions set out.

    n) M/s. Posiden FZE, UAE has made a Consortium with all the other Companies which have / provide for the above arrangements. Since this is the first of its kind in the entire country M/s. Posiden FZE UAE has made a Consortium to make itself suit the above requirements. While registering for free trade zone in United Arab Emirates the licencing authority provides different Post Box Numbers to different companies, for the same address.

    o) M/s. Posiden FZE, UAE Consortium meets all the eligibility criteria that is provided in the tender.

    p) M/s. Posiden FZE, UAE Company is registered in the free trading zone of UAE. Google search is not a registering authority. The registered address being UAQ free trading zone however, its work execution addresses are different. MSIL transacts with this address of M/s. Posiden FZE, UAE.

    q) They have provided EMD of Rs.1.50 Crores through RTGS and have furnished a Bank Guarantee D.D. through Axios Credit Bank which has been found to be in order through banking channels with SWIFT CODE.

    r) MSIL has enquired in Tamil Nadu about the import of River Sand at Rs.925/- PMT and it is found to be false. Recently, in Kerala we have come to know through reliable source that they have imported River Sand and they have sold loose River Sand at Rs.2500/- PMT at the Port.
    The MSIL tender rate is Rs.2300/- PMT (including bagging), is found the lowest rate among all the existing available sources.

    s) There is a huge difference in pricing between M-Sand and Natural River Sand which cannot be compared at all. Rationally, we may have to compare the Malaysia Natural River Sand with the locally available Natural River Sand. However, the MSIL bagged Sand also includes GST at the rate of 5% and also the permit cost that is paid to the department of Mines and Geology. The River Sand is tested by Bureau Veritas at Malaysia before it is loaded to the Ship. The sand is also checked for quality by SGS Company in India. There has been no lapses seen during the quality check.

    t) MSIL will not release any advance amount to the Supplier. Since, L.C. is issued only after the Sand is received at our Stockyard, there is no scope for any financial misappropriation.

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