CSA / R&D ( First Floor ) / 2011-12 Date : 15.07.2011. SUB: NOTICE INVITING TENDERS - LEASE OF First Floor of R&D Building ( Organic Chemistry Section admeasuring 3500 sq. ft. ) as is where is basis. ------------------------------------------------------------------------------------------------------------Dear Sir, Sealed bids are invited from for Leasing of First Floor of R&D Building hereinafter called as Facilities in our factory premises on as is where is basis for long term leasing. The detailed particulars of which are as stated hereunder:1. DESCRIPTION OF FACILITIES TO BE LEASED As described in para 1 of Annexure-I. 2. LOCATION Within the factory premises of Hindustan Antibiotics Ltd. (HAL) at Pimpri, Pune. Location drawing is enclosed. 3. PERIOD OF LEASE The Facilities are proposed to be leased initially for a period of 3 years from the date of transfer by Lessor (HAL) to the Lessee. The period can be extended by mutual consent from time to time as per mutually agreed terms and conditions. In case there is No mutual agreement Lessor ( HAL ) reserve the right to get premises vacated by giving 3 months notice to Lessee. 4. TERMS AND CONDITIONS FOR LEASING 4.1 The Bidder is required to submit the information / data in the format given at Annexure-II relating to its proposal for using the facilities for manufacturing of its products on R&D scale. 4.2 The Financial Bid is to be submitted in the format given at Annexure-III. 4.3 The period of lease of the Facilities shall be initially of 3 years which can be further extended for further period by mutual agreement. In case no mutual agreement Lessor ( HAL ) reserve the right to get premises vacated by giving 3 months notice to Lessee. 4.4 The area to be leased out to the Lessee is isolated and has separate doors to close it.. 4.5 Bidder has to quote for the entire Facilities in the format at Annexure-III. 4.6 Lessee shall furnish the list of activities / products to be manufactured on R&D Scale in the Facilities. The Facilities leased shall not be utilised for storage of explosive / hazardous materials. 4.7 Lessee shall undertake to use / operate the leased Facilities safely observing all the statutory rules and regulations prevailing and use it only for the purpose for which HAL has permitted. The Lessee shall take all necessary statutory approvals, licenses, permits, etc. as may be required from time to time to operate the Facilities including consent from MPCB, at its own cost. 4.8 The Lessee shall not cause any irreparable damages to the Facilities while carrying out the changes / modifications and additions in the Facilities, which may be permitted by HAL on the request made by the Lessee. 4.9 Lessee shall maintain the Facilities in good and tenable conditions at its own cost throughout the term of Agreement and all repairs and maintenance of the Facilities shall be at the cost of the Lessee. 4.10 The assets created by the Lessee in the course of carrying out the changes / modifications / additions in the Facilities shall be the property of the Lessee. However, on expiry or early termination of the Lease Agreement, HAL shall have an option to purchase the said assets at the book value or at the negotiated price, whichever is lower, from the Lessee. The Lessee shall maintain a detailed account of the capital cost incurred for creation of such assets, which shall be available to HAL for inspection. 4.11 The Lessee shall be required to pay interest at the rate PLR + 2 % per annum for any delay in payment of lease rent, consideration for the supply of utilities and services and any other dues payable to HAL. 4.12 After termination of the Lease Agreement, if HAL opts not to purchase the said assets created in the Facilities by the Lessee, the Lessee shall remove the said assets from the Facilities and restore the same in the original condition. 4.13 After the lease period, the leased facilities shall be handed over by the Lessee to the Lessor at its original form and condition. The expenses for restoring the original status shall be borne by the Lessee. 4.14 Lessee shall not cause or permit to cause in the Facilities any thing which may become a nuisance to the Lessor. 4.15 The Lessee shall not sub-let, mortgage, assign or sublease the whole or any part of the Facilities without prior written permission of HAL. 4.16 All the taxes / duties / levies for operating the Facilities shall be borne by Lessee during the term of Agreement. 4.17 The Lessee shall insure the Facilities adequately at its own cost. 4.18 All the liability arising out of operation or working in the Facilities shall be sole responsibility of the Lessee. 4.19 HAL reserves the right to carry out periodic inspection and shall have free access to the Facilities for the same. 4.20 Lessee shall furnish the details of the quantum of Utility requirement with break-up of peak demand and normal consumption for each Utility i.e. Power, Water , Chilled water Compressed air etc. Lessee shall also furnish quantity and quality of the effluent generated in the facilities. 4.21 HAL reserves the right to lease out the Facility fully or in part without assigning any reason. 4.22 The Lessee shall indemnify HAL against all costs, expenses/losses, damages, claims or demands on account of breach of any covenants, conditions, etc. of any agreement by the Lessee during the tenure of the Lease. 4.23 HAL can make available the utilities to the Lessee for operation of the Facilities at the rate which will be calculated as per Annexure-IV. The Lessee shall install meters at its own cost for measurement of consumption of utilities by the Lessee as per the requirement of HAL. The Lessee shall be liable to pay the consideration for the utilities consumed on monthly basis and HAL reserves the right to discontinue the supply of utilities to the Lessee in case of failure on the part of the Lessee to pay the charges for the said utilities, lease rent or any other dues to HAL in time. HAL also reserves the right to supply the utilities to any other User in the factory premises of HAL at its own risk ratio. 4.24 HAL will provide certain services to the Lessee, which have to be shared by the Lessee with HAL or any other party. Such shared services will be charged as listed in Annexure-V. 4.25 The arrangement for leasing OF THE Facilities is subject to the approval of the competent authorities of the Company and ‘The Board for Industrial and Financial Reconstruction’ (BIFR). The selected Bidder will have to enter into a Memorandum of Understanding (MOU) with HAL based on which the approvals will be sought from the competent authorities of the Company and BIFR. After receiving the approvals, the detailed Agreements for leasing of the Facilities, supply of utilities and providing services to the Lessee will be entered into. 4.26 In case of any dispute or disagreement between the Lessee and the Lessor arising out of this agreement, the same shall be referred to the sole arbitration of Managing Director of HAL or his authorised representative. The jurisdiction for any dispute shall be Pune Court. 4.27 The Agreement to be entered into with the selected Bidder shall come into force from the effective date which will be valid initially for a period of 3 years, which can be extended for further period by mutual agreement. The Agreement can be terminated in case of any material breach of the obligations under the Agreement by either party, if such breach is not cured within a period of 120 days. The Agreement can also be terminated if either party becomes a subject of proceedings in bankruptcy or under insolvency laws or for receivership, liquidation or dissolution. 5. BID SUBMISSION 5.1 Bid shall be prepared and submitted in Formats at Annexure-II as Technical Bid and Annexure III as Financial Bid and sealed in a separate covers and super scribed as Technical Bid and Financial Bid on a respective sealed cover and both the covers may be place in one envelop which is to be sealed and super scribe strictly as CSA / R&D First Floor facility. The bids should reach the office of the undersigned latest by 14.30 hrs on or before 2nd August, 2011.The bids submitted after due date / time shall be liable for rejection. 5.2 The bids must be accompanied by "Earnest Money Deposit"(EMD) of Rs 25000.00 in the form of demand draft from Nationalized Bank in favour of Hindustan Antibiotics Ltd., Pimpri .EMD amount shall be refunded to the unsuccessful bidders without interest. 5.3 Bidder shall submit its acceptance of the terms & conditions of leasing Clause by Clause i.e. 4.1 to 4.27 without which bids will not be considered. Deviation if any, from above terms & conditions of leasing i.e. Clause No. 4.1 to 4.27 shall be clearly stated, without which it shall be deemed that all the clauses as stated are acceptable. 5.4 HAL reserves right for accepting any bid in part or full or rejecting any bid without assigning any reason. Thanking you, Yours faithfully, for HINDUSTAN ANTIBIOTICS LTD. ( VIRENDRA SINGH ) COMPANY SECRETARY Encl : a / a. Annexure- I FACILITIES AVAILABLE IN HAL & TERMS FOR LEASE ARRANGEMENT I. Facilities : First Floor of R & D Building ( Organic Chemistry Section ). Total area is around 3500 sq. ft. is well furnished and have different facilities the cost of which is around Rs. 50 lakhs . II. Sr. No. Utilities plants & Facilities : Particulars of Utility 1 Direct Power 2 Compressed System 3 Chilled System 4 The details of utilities available at HAL is given Below :- Brief Specification 415 ± 6 % V, 3 ph AC KVA or 215 ± 6 % V single ph AC Air Pressure : 2.1 Kg/Cm2 (g) water Temp. : 9 to 10oC Pressure : 3 kg/cm2 (g) Cooling tower Temp. :31oC(max) water system Pressure : 3 kg/cm2 (g) 7 Steam 8 Process water 9 D. M. water Unit NM3/Hr TR M3/Hr *Saturated Dry steam Te/hr * High pressure at 8 to 9 kg/cm2 (g) * Low pressure at 3 to 3.5 kg/cm2 (g) Pressure : M3/day 2.5 kg /cm2 (g) Conductivity less M3/day than 10 micromhos/ cm Quantity Available Remarks Available for all the connected equipments as specified in Annexure-IIA. 30,000 Quantity less than 10000 NM3/Hr is cannot be supplied. 500 Additional quantity can be considered. 500 Supplying additional quantity can be considered 8 to 9 Supplying additional quantity can be considered. About 1000 50 More qty. can be made available depending upon requirement III. ETP FACILITY The lessee shall take consent to operate from MPCB as per rules and regulations. The effluent can be treated on reimbursement of actual cost of expenditure in HAL’s centralized ETP facilities in case characteristics of effluent streams are within the operational capacities of the plant which is as given below :- 1. LIQUID EFFLUENT : LIMITS FOR EFFLUENT CHARACTERISTICS FOR LESSEE SR. NO. a b c d PARAMETER Flow B.O.D. C.O.D. Suspended solids e Dissolved solids f Ph UNIT LIMITS M3/day Kgs / day Kgs / day Mg/lit (kgs/day) Mg/lit (kgs/day) - 1000 700 1200 500 (1750) 600 (2100) 6.0-8.0 However, average BOD & COD of effluent shall be around 700 mg / lit and 1200 mg / lits respectively with total value not exceeding to COD 1200 Kg / day, BOD 700 Kgs / day Toxic-None. In case the effluent exceeds values in quality and quantity lessee shall carry out primary treatment in order to meet the above specified limits. Lessee shall carry out, at its own costs and risks, the treatment to meet MPCB norm if the effluent stream contains toxic component and also if the effluent is not treatable in the existing ETP plant due to its different characteristic. 2. SOLID WASTE /HAZARDOUS WASTE : Solid waste/ Hazardous waste disposal including Mycelia, activated carbon etc. shall be undertaken by lessee with separate consent from MPCB at its own costs. 3. GASEOUS WASTE : In case of any gaseous waste, it will be responsibility of lessee to treat & discharge gaseous effluent, if any, in future, at its own costs & risks. NOTE: The above limits in the respect of characteristic of any effluent by lessee shall be subject to review and revision depending on the changes in the norms prescribed by MPCB from time to time. ANNEXURE-II INFORMATION/DATA TO BE FURNISHED ALONG WITH TECHNICAL BID 1. GENERAL 1.1 Proposed Arrangement and its tenure : 1.2 Market scenario for products and market share expected (next 5 years) (indigenous and Global scenario) : i) ii) 1.3 Physical performance Financial performance Current selling prices and expected product wise sales : 1.4 Any other point (i.e.not included) : 2. TECHNICAL 2.1 Product/s intended to be manufactured : On R&D Scale 2.2 Capacity envisaged for each product 2.3 Utilities required including recovery Process (for each product) a. Lease of the Facilities for 3 years which may be extended by mutual agreement. Subject to the Clause 3 period of Lease. Steam @ 3.5 kg/ CM2 (G), Kg/Hr : Peak : Steam @ 9.0 kg/ CM2 (G), Kg/Hr b. Chilled water @ 10ºC kcals/Hr : c. Cooling tower water, M3 /hr : d. Direct Power Demand, KVA : e. Compressed air NM3 /hr at 2.2 kg/cm2 (g) f. Process water, M3 /day : Normal 2.4 Characteristic of Effluent ( for each product ) a. Flow diagram indicating each stream being discharged ( including solid, liquid and gaseous ) : Quantity/day and characteristic of all the Effluent streams discharged including BOD, COD, TDS, any toxic chemical : b. 2.5 4.24 a. Major modifications / construction envisaged in facility including storage of Raw Material, for which permission from Directorate of Health and Safety is required b. Any major safety hazard related with the raw materials and/or processing : Precautions / steps suggested to avoid Cross contamination to existing Plant Please note that statutory clearances related to product manufacture including FDA, DCI, Pollution Control Board, Factory Inspectorate, Controller of Explosives, Excise, Sales Tax etc. shall be in the scope of Bidder. 2.7 Any other point ( i.e. not included ) : Annexure-III FINANCIAL BID 1. Lease rent per annum for the Facilities : 2. Mode of payment of lese rent : st (Lease rent to be paid on 1 of every month in advance irrespective of profit or loss by lessee and Bank guarantee for this payment is to be provided by the bidder in favour of HAL) : 3. Incremental increase in lease rent : Annexure - IV BILLING OF UTILITY COST A. BASIS OF ASCERTAINMENT OF UTILITIES COST: A-1 DIRECT POWER : Actual consumption will be consumption as per LT meter reading + 5% for transformer and transmission losses. Rate will be as per cost per unit as per article B enclosed herewith. A-2 STEAM : Steam consumption in terms of furnace oil shall be worked out based on heat balance and operations. For fermentation , norm would be worked out based on operations and running hours of fermentors /seed vessels and Auxiliary vessels and for downstream processing , norm for the month would be based on heat balance and related output ( in terms of kgs of final product). Norms for header maintenance /losses would be calculated based on length/ dia of header with insulation efficiency at 80%. While working out norms for steam consumption 20% extra over theoretical calculation would be considered for deviation in operation, mal functioning of traps, leakages etc. Actual fuel oil consumption for the month will be apportioned on the total fuel oil consumption based on the norms as above. Rate per unit will be as per article B enclosed herewith. The above methodology would be changed in case accurate meters are installed for the plants In case of meter the header losses upto the meter would be the additional quantity of steam over and above meter quantity As such methodology would be work out for metered quantity of steam based on the accuracy of meter, its turn around ratio and position of the meter from Boiler house. A-3 COMPRESSED AIR : Compressed air consumption shall be worked out in terms of KWH based on power consumption of compressor and its auxiliaries. Compressed air consumption norm for fermentation would be worked out based on operations and running hours of fermentors/seed vessels and Auxiliary vessels and for downstream processing norm for the month would be based on usage pattern In terms of output.( i.e kgs of final product). While working out norms for compressed air 10% extra over theoretical calculation would be considered for deviation in operation , leakages etc Actual power for compressed air for the month will be apportioned on the total power ( including auxiliaries ) for compressed air based on the above norm. Rate will be cost of compressed air generation per unit as per article B enclosed herewith. The above methodology would be changed in case accurate meters are installed for the plants In case of meter the losses upto the meter would be the additional quantity over and above metered quantity As such methodology would be work out for metered quantity of compressed air based on the accuracy of meter, its turn around ratio and position of the meter from Services. A-4 CHILLED WATER : Chilled water consumption shall be worked out in terms of KWH for power for chillers including its auxiliaries. Chilled water consumption norm for fermentation would be worked out based on operations and running hours of fermentors /seed vessels and Auxiliary vessels and for downstream processing norm for the month would be based on usage pattern In terms of output.( i.e kgs of final product). While working out norms for chilled water 10% extra over theoretical calculation would be considered for deviation in operation , leakages etc. Actual power for chilled water for the month will be apportioned on the total power ( including auxiliaries ) for chilled water based on the above norm. Rate will be cost of chilled water generation per unit as per article B enclosed herewith. A-5 COOLING TOWER WATER FOR PROCESS : The power per day for process cooling tower water would be based on number and installed KW of pumps running for leased facilities . A-6 CHILLED BRINE : Chilled brine consumption shall be worked out in terms of KWH for power for brine chillers including its auxiliaries. Chilled brine consumption would worked out based on usage pattern and heat balance In terms of output.( i.e kgs of final product). While working out norms for chilled brine 10% extra over theoretical calculation would be considered for deviation in operation , leakages etc. Actual power for chilled brine for the month will be apportioned on the total power (including auxiliaries) for chilled brine based on the above norm. Rate will be cost of chilled brine generation per unit as per article B enclosed herewith. A-7 WATER DRINKING WATER : Drinking water will be allocated based on manpower utilised for leased facilitites on Pro-rata basis. PROCESS WATER : Process water allocation shall be on pro rata basis based on consumption for process as well as in utility plants. Norm for process water consumption would be worked out based on operations Norm for water consumption for utility (Excluding steam) would be worked out based on chilled water consumption for RPGLS. Alternatively, the above methodology would be changed in case accurate meters are installed for the plant. In case of meter the additional quantity over and above metered quantity would be worked out for usage of water for cooling tower, chilled water etc. As such methodology would be worked out for metered quantity of compressed air based on the accuracy of meter, its turn around ratio and position of the meter from Services. DM WATER : Lessee shall provide a meter for DM water consumption. A-8 EFFLUENT TREATMENT PLANT : Allocation of cost would be based on quantity and quality of effluent generated from lease facilities. B . ASCERTAINMENT OF COST OF UTILITIES PER UNIT : B-1 I. II. III. ASCERTAINMENT OF COST OF POWER PURCHASED DIRECTLY FROM MSEDCL This will be worked out by distributing expenses of. Power receiving and distribution over quantity of power purchased during the period. Power purchased rate for the month = Total Bill (in Rs) from MSEDCL for the month Total Power Consumption (KWH) Additional cost for Manpower, Interest , = 5% of MSEDL rate as calculated in I Deprecation , Consumables, Repair & Maintenance etc. Rate for billing of Direct Power = I+II B-2 ASCERTAINMENT OF COST OF PROCESS WATER : This will be worked out by distributing expenses of water treatment plant (WTP) over quantity of water purchased during the period. I. Water purchased rate for the month = II. III. Additional cost for Manpower, Interest , = Deprecation , Consumables, Repair & Maintenance etc. Rate for billing of Water = B-3 ASCERTAINMENT OF COST OF STEAM : Total Bill (in Rs) from MIDC for the month. Total Water Consumption (M3) 20% of MIDC rate as calculated in I I+II Cost per unit of steam will be worked out based on total of expenses of B/House distributed over total quantity of steam production (as reduced by consumption of steam for Boiler house) during the period. Steam consumption would be calculated in terms of Furnace oil (F.O.) consumption : I. Furnace Oil purchased rate for the month = II. Additional cost for Manpower, Interest , = Deprecation , Consumables, Repair & Maintenance etc. III. Rate for billing of Steam in terms of F.O. Total Bill (in Rs) for F.O. for the month Total Consumption (Te) 20% of F.O. rate as calculated in I = I+II * F.O. rate to be calculated B-4 ASCERTAINMENT OF COST OF CHILLED WATER. Cost per unit of chilled water will be worked out by distributing total expenses of chilled water and other related department and billing would be in terms of KWH including Power for Chiller & its auxiliaries. I. Power purchased rate for the month = Total Bill (in Rs) from MSEDL for the month Total Power Consumption (KWH) 18% of MSEDL rate as calculated in II. Additional cost for Manpower, Interest , = Deprecation , Consumables, Repair & Maintenance etc. III. Rate for billing of Chilled water in terms of KWH = I+II B-5 BASIS OF ASCERTAINMENT OF COST OF COMPRESSED AIR Cost per unit of compressed air will be worked out by distributing total expenses of compressed air and other related departments and billing would be in terms of KWH including Power for Compressors & its auxiliaries. I. Power purchased rate for the month = Total Bill (in Rs) from MSEDL for the month Total Power Consumption (KWH) 15 % of MSEDL rate as calculated in II. Additional cost for Manpower, Interest , = Deprecation , Consumables, Repair & Maintenance etc. III. Rate for billing of Compressed air in terms of KWH B-6 BASIS OF ASCERTAINMENT OF COST OF BRINE = I+II Cost per unit of brine will be worked out by distributing total expenses of Brine and other related departments and billing would be in terms of KWH including Power for Brine & its auxiliaries. I. Power purchased rate for the month = Total Bill (in Rs) from MSEDL for the month Total Power Consumption (KWH) II. Additional cost for Manpower, Interest , = Deprecation , Consumables, Repair & Maintenance etc. III. Rate for billing of Brine in terms of KWH B-7 BASIS OF ASCERTAINMENT OF COST OF WATER a. 20% of MSEDL rate as calculated in I = I+II Process water / drinking water Cost per unit of water will be worked out by distributing total expenses of water and other related departments and billing would be in terms of M3 I. Water purchased rate for the month II. Additional cost for Manpower, Interest , = Deprecation , Consumables, Repair & Maintenance & pumping cost etc. III. Rate for billing of Process water and drinking water = I + II In terms of M3. b. = Total Bill (in Rs) from MIDC for the month Total Water Consumption (M3) 20% of MIDC rate as calculated in I DM water Rater for DM water = 1.5X ( Rate of water as calculated in B-7III as Above ) B.8 ASCERTAINMENT OF COST OF EFFLUENT TREATMENT PLANT/CC 306 Cost for this purpose will be the cost of employee and other expenses attributable to cost centre 306. I) Cost of employees attributable to cc 306 i.e. effluent treatment plant: II) Other expenses including consumable, store/spare, attributable to this cost centers. III) Depreciation IV) Lease rent in respect of leased assets. V) Interest at fixed rate of 18 % p.a. on net block. VI) Cost of employees of other related departments (Proportionate) . indirect expenses etc Annexure – V 1. BILLING TO LESSEE IN RESPECT OF SHARED SERVICE DEPARTMENTS SHARED SERVICE DEPARTMENTS a. Guest House Guest House services will be charged as per prevailing rates. b. Common Horticulture/civil/Electrical maintenance/roads/street lighting etc Expenses incurred on these departments will be shared by Lessee in proportion to Production area leased to total Production area. c. Common security Expenses incurred on common security will be charged to Lessee in proportion of manpower made available to Lessee by HAL. d. Common fire fighting Expenses incurred on common fire fighting will be apportioned to Lessee in Proportion of area of facilities. e. Common Internal Telephone Expenses of EPABX will be shared in proportion of number of internal telephones. Charges in respect of outside telephone, telex, fax will be at actuals or estimated actuals f. Weighbridge Services Billing to Lessee will be based on prevailing commercial rate. g. Workshop Billing to lessee will be based on services rendered in machine hours / manhours valued at cost per machine hours/ manhours of workshop dept. j. Any other department Billing will be based on cost to be mutually agreed upon.