INVITATION TO EXPRESSION OF INTEREST

PREAMBLE

Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant is a shore based Integrated Steel Plant built with an annual production capacity of 3.0 Million Tons, has been operating now at 120% of its capacity.

It is one of the Premier steel making companies, having created a niche globally for its quality, innovativeness in adding a range of products to its existing mix, Customer- Friendliness, and thriving to become a World- Class company in all fronts.

The Turnover of the Company in the last four years has been as follows:

The Company carries out its marketing activities through its network of offices located in 26 cities (including Visakhapatnam ) of the Country. The list of outlets is placed at Annexure-1.

ROAD MAP FOR EXPANSION

The Board of Directors has already approved the Expansion Plan taking the capacity to 6.5 Million Tons which is expected in 2007-08.

The likely Turnover at constant prices is envisaged as follows:

Also, plans are in the anvil to take the steel making capacity to 10 Million Tons once the 1^st Expansion plans ( i.e., 6.5 Million Tons) are put in place.

OBJECTIVE

To transfer Funds from Branches to Head Quarters, Visakhapatnam without any transit time i.e., crediting on day Zero at the designated account at Visakhapatnam with charges being most economical.

FUNDS COLLECTION MECHANISM

The Sales are effected by way of DD/ Pay Orders and Cheques payable at respective Branches.

PRESENT POLICY

Services are availed with the Bank providing the BEST service at most ECONOMICAL RATE

SALIENT FEATURES OF THE POLICY

a) The Collections of each day at the Branches of RINL will be deposited in the Bank before 11.00 AM of the next working day.

b) The Bank will provide pick up facility for collection of cheques from the respective RINL branches at their risk and responsibility.

c) The funds so deposited at various branches will be pooled and credited to the account of RINL held at Visakhapatnam on the same day by 3.00 PM , as long as Cash Management System is in vogue.

d) Banks must be capable to switch over immediately to Real Time Gross Settlement (RTGS) at those VSPs locations once RBI enables and the credit to the account of RINL at Visakhapatnam must be as per the system in vogue at that time.

e) The bank at Visakhapatnam should honour the cheques received in the clearing or Transfers issued by RINL against the anticipated funds for the day.

f) The Bank shall allow for a temporary overdraft in case of mismatch i.e., if the payments of the day are more than the receipts, the short fall shall be adjusted by way of overdraft which will be mitigated by the next working day or two.

g) The Overdraft allowed by the Bank and the charges payable for returned cheques shall be at softer rate of interest charge.

h) The bank will submit MIS report on daily basis to the respective RINL Branches showing Cheques/DDs deposited, its clearing status, details of returned cheques, amount transferred and a consolidated report on a fortnightly basis and summary report daily and fortnightly to Head Quarters at Visakhapatnam in mutually agreed user friendly formats.

i) Service charges to be levied by the Bank on the 1^st of the following month as per the agreed rates with a report of it being sent to Head Quarters.

GUIDELINES FOR EMPANELMENT OF BANKS

a) Any Scheduled Bank having presence all over India.

b) The Bank must have at least one Branch in Visakhapatnam.

c) The Bank shall keep their rates firm for one year with separately quoting charges for CMS and RTGS.

d) The Bank shall have branches in all the locations where RINL is having Branches or an arrangement with Associate Banks.

e)The bank shall have interconnectivity for all the Branches wherever RINL is having Branches and proposing to utilize the services of that Bank.

f) The Bank should have experience in CMS with large clientele having a turn over of over Rs. 2000 Crore per annum.

g) The CMS/RTGS offered by the Bank should have good MIS support and able to provide user friendly MIS reports.

h) Banks should have pick-up facility of instruments from RINL branches daily at the risk and the responsibility of the Bank.

i) The designated Branch of the Bank should be able to sanction temporary OD to the extent of shortfall with out any notice at most economical rates of interest.

j) The Bank should provide EFT facility for Payments at Visakhapatnam as well as RINL Branches.

PROCEDURE FOR IDENTIFYING THE BANK

a) Banks who have required facilities and already handling such services to other clients may respond along with details.

b) Banks meeting the eligibility criteria will be asked to submit their EOI for providing the CMS/RTGS Services.

c) The Banks will be asked to quote applicable charges separately for the Services i.e., on CMS and RTGS.

d) The Services will be valid for a period of one year.

e) The Contract entered with the Bank will stipulate for cancellation of the Contract by RINL if the services are not satisfactory.

To Sum Up

RINL already have a Cash Management System with a Bank which will continue till December 2005. In the month of October 2005, we will be choosing a Partner Bank to render CMS/RTGS for the calendar Year 2006. We are putting this draft policy to let us know and invite suggestions if any on the draft placed, before designing our final Policy.

List of RINL Branches