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RFP for Tuticorin Green Ammonia Project

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Anil Bhasin
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0% found this document useful (0 votes)
22 views6 pages

RFP for Tuticorin Green Ammonia Project

Uploaded by

Anil Bhasin
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

REQUEST FOR PROPOSAL (RFP)

Tuticorin Green Ammonia Project

1. Introduction
ACME Clean Energy Pvt. Ltd. (“Owner”) is one of the leading global sustainable and
renewable energy companies, headquartered at Gurugram in the state of Haryana, India.
Through its wholly owned subsidiary, ACME Green Hydrogen and Chemicals Pvt Ltd.
(“Company” or “Developer”), the Owner is developing a green ammonia project at Tuticorin,
Tamil Nadu, India (the “Green Ammonia Project”). The Company is also planning to develop
proximately located (with the Green Ammonia Project) renewable energy generation projects
(“RE Projects”) for the purposes of the captive consumption of the Green Ammonia Project
To this extent, the Owner has executed MOUs with the state of Tamil Nadu and has also
procured land in the V.O. Chidambaranar Port, in Tuticorin. The RE Projects and the Ammonia
Project are hereinafter collectively referred to as the Project. The Project will attract significant
investment in the state as also creating significant employment opportunities. For the
development of the Project, the Company intends to procure approximately 30,000 acres of
land (on a leasehold basis) in the state of Tamil Nadu, near certain substations. Further details
in this regard, are contained in Section 3 of this RFP.

2. Objective

The Company is selecting a solution/service provider/contractor for land procurement in


accordance with the terms of this RFP. Our objective is to select the bidder who most fully
meets the requirements identified in this Request for Proposal (RFP) and who is able to provide
a high level plan along with its response to the RFP. You/Your Company is invited to take part
in this process and provide a proposal that satisfies the Company’s requirements. You/Your
Company is/are invited to respond to this RFP by describing how they can meet the
requirements set out in this RFP and by providing other information requested. Responses to
this RFP will be used to qualify bidders for the final evaluation and price negotiation phases of
the selection process.

3. Preferred Locations, Land Spread Details and Key Principles

(i) The Company’s requirement is for land located within a maximum 20-25 KM radius
of the following substations:

Distance from
[Link]. State Place Coordinates
Tuticorin Port
Tamil Nadu, 8.683046,
1 Sawyerpuram
India 78.030396 20 Kms
Tamil Nadu, 9.023417,
2 Pazhankottai
India 77.65641 90 Kms

Tamil Nadu, 9.236533,


3 Kilakkarai
India 78.691321 108 Kms
(ii) Further, preference would also be accorded for land parcels with access to road
infrastructure.
(iii) Minimum lot size for each land parcel (on a contiguous basis) shall be 3000 acres to
4000 acres. No post facto modifications of the lot size after the approval of the
Company for acquisition shall be permitted. If the land is not contiguous, smaller lot
sizes may be considered provided that the land parcels making up a lot shall be in close
proximity to each other (such that operational issues do not occur) and no more than 2-
3 parts.
(iv) The Land Parcel shall be suitable for locating the RE Projects.
(v) The lease deed will be executed in the favour of the Company as per the format which
shall be provided by the Company to the successful bidder at the time of award of the
Contract. The lease period shall be for a minimum of 30 to 40 years and the lease shall
be directly between the landowners and the Company, such that the lease amount will
be directly paid by the Company to the landowner.
(vi) The Bidder shall ensure that no transmission line is passing or is proposed to pass over/
under the land parcels. The Bidder shall not offer any such land parcel which is
hindered by a transmission line. If the Company, during the term of this Agreement or
anytime thereafter, finds that the land parcel(s) cannot be used by the Company due to
a transmission line, then the Bidder shall be responsible for cancellation of the lease
deed for such land parcel(s) and for compensating the Company for all the costs and
expenses incurred by the Company on such land parcel(s) including but not limited to
the charges paid to the Bidder, lease amount paid till such date, stamp duty and all other
statutory charges.
(vii) The Company would prefer Bidders who are willing to include within their scope of
work, barbed wire fencing installation (along with gate) prior to hand over of the land
parcels.
(viii) While the Company would prefer to procure the land parcels on a lease hold basis, the
Company is open to receiving proposals for outright purchase/sale. The Company
retains its sole discretion to pursue such an option and in the event that the Company
does not pursue such option, the Company shall have no liabilities and shall not be
required to pay the Bidder for any costs incurred by the Contract.

Other Principles

(i) The Company shall take only such Land Parcels on lease which are suitable for
execution of the Project as the per the Due Diligence conducted by the Company and
the Company shall not be liable in any manner whatsoever for any Land Parcel which
is found to be not suitable for the execution of the Project upon completion of due
diligence.
(ii) The Bidder shall assist the Company in undertaking title search reports and other due
diligences. For the avoidance of doubt, the cost of undertaking such title search reports
and due diligences shall be to the Company. In this regard, the Company may appoint
such consultants, lawyers, law firms etc., and it shall be the duty of the Bidder to also
coordinate with such third parties appointed by the Company for undertaking such title
search reports and/or due diligences.
(iii) The land parcels shall be empty without any public usage of such land and the Company
upon executing the lease shall have the ability to make unhindered use of such land.
(iv) The landowners shall have clear and marketable title.
(v) The Company shall be entitled to meet landowners and/or visit the land parcels and the
Bidder shall facilitate all such meetings or visits required by the Company.
(vi) Notwithstanding the Company’s right to require meetings with landowners or visit the
identified land parcels, the Bidder shall at all times, keep the Company informed of the
progress in undertaking their Scope of Work, in a timely manner. Such reportings could
include weekly or monthly reports and shall be finalised at the time of Contract award.
(vii) The Bidder shall not be entitled to claim any damages and/or compensation in case the
Company does not lease/buy any Land Parcels offered due to violation of any terms
and conditions of the contract to be executed between the Company and the successful
bidder or for any reasons beyond the control of the Company including but not limited
to, any government order, refusal of statutory permissions etc. or if the title of the land
is found defective.
(viii) The Company shall not execute lease for any un-partitioned or undivided land or where
the landowner is a minor unless a permission of appropriate court is obtained
previously in this regard.
(ix) Any Land Parcel which was previously owned by PACL, panchmi lands, lands owned
by companies which are not active or have been struck off from Ministry of Corporate
Affairs, shall not be considered.
(x) in the event any Panchami land/ government/natham (gram panchayat) land forms part
of the Land Parcel, the same shall be shifted or exchanged by the Land Facilitator at its
own sole cost and expense or otherwise Land Facilitator shall take permission at its
own cost and expenses.
(xi) included in the contract price shall be the costs associated with collating and submitting
documents for the Company’s review and any costs associated with executing the land
lease (except in relation to stamp duty or registration charges, which shall be borne by
the Company);
(xii) standard penalties/liquidated damages to apply, if the Bidder is not able to comply with
the timelines.

Deviations from Key Principles

While the Company would accord the highest evaluation criteria to bidders/bidders who adhere
to the aforementioned principles, the Company is open to receiving alternative proposals (with
altered principles)

4. Scope of Work and Tentative Timelines

[Link] Item Tentative Timeline


Identification of Land Parcels in With 30 days of
accordance with the requirements of grant of
the RFP, the Contract and providing award/execution of
a detailed plan identifying the target contract
lands and the strategy for
procurement of such lands
1) In-Principle Approval by Company Within 15 days of
of Detailed plan at [Link] 1 submission of
detailed plan
2) Procurement of letters of intent from Within 120 days of
landowners and submission of approval by
documents for undertaking Title Company as listed
Search Reports in [Link] 2.
3) Technical Clearance by Company to Subject to
proceed with procurement of lands satisfactory checks
for which TSRs have been submitted through TSRs,
within 60 days of
submission of
documents as listed
in [Link] 3. In certain
limited cases, the
Company may
withhold approval
for operational
reasons (including if
the land parcel in
question is not
contiguous)
4) Execution of Lease Deeds Within 60 days of
Technical
Clearance form the
Company as listed
out in [Link] 4.
5) Post Lease Support (if any, such as As required.
clearance of land etc to provide
unhindered possession to the
Company)

5. Ethical Conduct

Neither Party shall offer, pay, promise to pay, or authorize the payment of any money, or offer,
give, promise to give, or authorize the giving of anything of value, to any Governmental
Authority, Government Official or any private person under circumstances where the Bidder or
such Personnel knows or ought reasonably to know (after due and careful inquiry) that there is
a likelihood of such money or thing of value being offered, given, or promised, directly or
indirectly, may influence any act or decision of such Governmental Authority, Government
Official, or private person, induce such Governmental Authority, Government Official, or
private person to do or omit to do any act in violation of their lawful duties or wrongfully
perform an official function that they are expected to perform impartially and in good faith; or
induce such Governmental Authority, Government Official, or private person to use their
influence, in a manner which would constitute or have the purpose or effect of public or
commercial bribery, acceptance of, or acquiescence in extortion, kickbacks, or other unlawful
or improper means of obtaining business or any improper advantage.

Each Party shall perform the obligations set out under this RFP and the Contract in compliance
with all applicable laws and/or regulations relating to anti-bribery, anti-corruption or prevention
of money laundering.

6. Eligibility Criteria

All companies, partnership firms, LLPs, sole proprietorships having the following experience
and credential are eligible to reply and respond to this RFP:

(i) The bidder/bidder must have had prior experience in Tamil Nadu and must have carried
out similar works (minimum 200 acres procurement, whether on lease or sale basis) for
projects of similar nature.
(ii) adequate financial standing as evidenced by necessary documentation.
(iii) Companies/ partnership firms, LLPs, sole proprietorships holding necessary land
(minimum 1000 acres) may also bid under this RFP for direct offer of their land.
Entities may also form a consortium or partnership and respond to this RFP. In case of
such joint bids, each of the members of the joint venture or consortium shall have joint
and several liability.
7. Bid Process and Instructions

(i) Submit any pre-bid queries within 10 days of the date of advertisement in the news
papers (“Advertisement Issue Date”).
(ii) The Company will aim to respond within 7 working days of receiving all such queries.
(iii) The deadline for submission of responses to this RFP (in accordance with Section 7
below) shall be 30 days of Advertisement Issue Date (“Bid Close Date”). The
responses shall be submitted to [Link]@[Link] and sundararajan@[Link].
(iv) Award of Contract shall be made to the successful bidder/bidder through a letter of
award (“Letter of Award”) within 14 days of the Bid Close Date, subject to the
Company receiving satisfactory responses.
(v) Contract execution (covering all principles laid out in this RFP in addition to various
standard terms and conditions) within 14 days of Letter of Award. A template of such
contract (which may be modified for any negotiations) will be provided to all interested
bidders upon request. Depending on the financial strength and profile of the successful
bidder, the Company may require it to submit adequate security (including by way of
a bank guarantee) for its obligations.

Response- Requirements

(i) Bidders shall provide a technical proposal and a commercial proposal in the same email
to [Link]@[Link] and sundararajan@[Link] on or before the Bid Close Date
in accordance with the terms of this RFP.

(ii) Technical Proposal: shall contain a High Level Plan (as to which see details below),
bidders past experience (including documentation to show financial strength if
necessary) and technical strategy (along with detailed timeline break-up for the scope
of work, which shall in no event conflict with Section 4 of this RFP).

High Level Plan

The High Level Plan, required to be submitted along with your response to this
RFP, should contain details of key target areas (including with appropriate
maps or drawings- google map drawouts will also be considered), approximate
availability of land in such key target areas, availability of grid injection
facilities (such as closest sub-station) and road connectivity in such key target
areas, broad profile of land owners in such areas (if available- whether
residential/or whether significant agricultural activities are taking place,
receptiveness of land owners in the area to sell/lease their land etc), past
examples of land acquisition in such areas for projects of a similar nature (i.e.,
renewably energy projects) and other details as are necessary for the Company
to be able to ascertain your familiarity and suitability for carrying out the scope
of work.

(iii) Commercial Proposal: shall be submitted on a per acre basis for both the Bidder’s
fees and the lease rates. The preferred maximum per acre fee to be charged by the
Bidder for providing its Services shall not exceed INR 25,000 per acre excluding GST
(which shall be payable at actual) (“Bidder Fee”). The maximum lease rates shall not
exceed INR 25,000 per acre with an escalation of a maximum 5% every three years
(“Lease Rates”). The Company is open to receiving floating/range-based Lease Rates,
however, potential bidders giving fixed Lease Rates will be accorded preference.
8. Other Bid Conditions

The Company reserves the right to negotiate any or all RFP terms and conditions, and to cancel,
amend or resubmit this RFP in part or entirety at any time. This RFP has been issued exclusively
for providing adequate information about the requirements of the Company and to solicit
proposals. While one or more Bidder may be selected as candidates, and the Company may
negotiate a vendor contract with one or more respondents, the Company reserves the right to
reject any or all of the responses received for any reason or no reason, and to decline negotiating
and signing a contract with any Bidders responding to the RFP regardless of whether any
Bidder’s response is partially or fully accepted or rejected, or contains the highest or lowest
mark-up or price, or the most timely services delivery commitment, or whether a Bidder
responds with a no-response notice or has an existing contract with the Company and regardless
of any other matter. The Company further reserves the right to negotiate with any vendor who
does not receive this RFP.

Statements known to be, or subsequently found to be, inaccurate or misleading may disqualify
the vendor from further participation in the evaluation process.

Common questions

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The primary criteria for selecting a bidder in the RFP process include the bidder's ability to meet company requirements, prior experience in Tamil Nadu with similar projects, adequate financial standing, and potential for land offers on lease or sale basis. Bidders are also evaluated on their response to the RFP in terms of providing a high-level plan, technical and commercial proposals, and a demonstration of capability to acquire or lease land parcels. Preference is given to bidders who offer fixed lease rates and comply with the maximum fee and lease rate ceilings set by the Company .

The RFP mandates thorough due diligence and title search reports to pre-emptively address any title defects before lease execution. Bidders are required to ensure parcels are free of disputes and must not offer un-partitioned land without prior court permissions. If title issues arise post-lease, the bidder is responsible for cancelling the lease and compensating the Company for related costs. Additionally, lands with historical legal complexities like PACL lands or inactive company ownership are disqualified .

Transparency and competitiveness in the bidding process are ensured by setting clear eligibility criteria, including prior relevant experience and financial stability. The RFP allows entities to form a consortium, highlighting transparency requirements like adherence to anti-corruption laws. The evaluation process includes pre-bid queries, deadline compliance, and potential preference for fixed lease rates. The Company's right to reject any bids that do not meet the set principles or violate regulations further guarantees the process's fairness and rigor .

The selected bidder's role in the post-lease phase involves supporting activities necessary for providing the Company with unhindered possession of the land. This may include clearing the land and resolving any access issues. The bidder is also expected to maintain transparent communication with the Company throughout, providing timely updates on the progress in line with the defined scope of work .

The Company expects that the land parcels should be within a 20-25 km radius of specific substations and should be contiguous, with a minimum lot size of 3000 to 4000 acres unless operational issues are addressed. Non-contiguous parcels must be in proximity and limited to 2-3 parts. The layout strategy also requires land with no transmission interference and access to road infrastructure. An effective acquisition strategy must include a detailed plan with maps, landowner profiles, and proof of past acquisitions in similar projects .

Bidders must submit a technical and a commercial proposal via email by the Bid Close Date. The technical proposal includes a high-level plan with detailed timelines, maps, and evidence of past experience. The commercial proposal must specify fees per acre and proposed lease rates. Pre-bid queries must be submitted within 10 days of advertisement, and proposals need to adhere to deadlines for evaluation, with potential submission of additional security depending on the bidder's financial profile .

The RFP addresses potential risks related to land suitability by mandating a thorough due diligence process, coordinated by the Bidder in collaboration with third-party consultants, to ensure the land parcels are suitable for the Project. Any land found unsuitable post due diligence poses no liability on the Company. The bidder must ensure that no transmission lines will interfere with the project, and the Company has strict criteria against leasing un-partitioned land or land with defective titles .

The RFP outlines ethical considerations requiring both parties to abstain from any form of bribery, corruption, or payment that influences government officials or entities. All obligations must be met in compliance with applicable laws on anti-bribery, anti-corruption, and money laundering. This ensures that neither party engages in activities like public bribery or acceptance of improper advantages .

The RFP suggests that all land parcels should be vacant without public usage, and any issues regarding such land use must be addressed by ensuring the land is free from encumbrances. The Company has the right to cancel leases and claim compensation if land parcels become unusable due to transmission lines or other unforeseen reasons. Land facilitators are expected to manage related issues at their own cost, and title searches are part of the due diligence process to pre-emptively handle disputes .

Financial considerations for the Company include setting a cap on both the bidder's fees and the land lease rates per acre, with lease rates not exceeding INR 25,000 per acre, subject to a 5% escalation every three years. The Company also bears the costs associated with title searches and due diligences, excluding stamp duty or registration charges. These considerations ensure cost control while allowing flexible proposal conditions like floating lease rates .

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