GAIL (India) Limited

GAIL (India) Limited COAL GASIFICATION PROJECT AT FCIL TALCHER EOI DOCUMENT NO.: GAIL/ND/PD/SCG/TALCHER/EOI/2014 BOOKLET FOR EXPRESSION OF INTEREST (EOI) FOR PRE-QUALIFICATION OF LICENSORS OF COAL GASIFICATION TECHNOLOGY FOR PROPOSED COAL BASED FERTILIZER CUM AMMONIUM NITRATE PLANT, AT TALCHER, DISTRICT ANGUL, ODISHA, INDIA Prepared & Issued by: GAIL (India) Limited

TABLE OF CONTENTS SECTION DESCRIPTION PAGENO. 1. INVITATION FOR EXPRESSION OF 4-8 INTEREST (EOI) 2. INSTRUCTIONS TO LICENSORS (ITL) 9-11 3. PROPOSAL FORMS 12-15 Page 2 of 15

Press Advertisement GAIL(India) i (A Govt. of India GLOBAL INVITATION EXPRESION OF INTEREST (EOI) FOR PRE-QUALIFICATION OF LICENSORS OF COAL GASIFICATION TECHNOLOGY FOR PROPOSED COAL BASED FERTILIZER CUM AMMONIUM NITRATE PLANT, AT TALCHER, DISTRICT ANGUL, ODISHA, INDIA A proposed consortium of GAIL (India) Limited, Coal India Limited (CIL), Rashtriya Chemicals and Fertilizers Limited (RCF), Fertilizer Corporation of India Limited (FCIL) ( Consortium ) with GAIL as leader intend to set-up a Coal gasification plant ( Plant ) for production of Ammonia Synthesis Gas (N 2 +3H 2 ) and Carbon Dioxide Gas on Lump-Sum Turn-Key (LSTK) basis ( Project ). The plant shall be of a size to produce Ammonia Synthesis Gas sufficient to be utilized as a feed for production of 2700 MTPD Ammonia, 3850 MTPD Urea and 1000 MTPD of Ammonium Nitrate. Interested Licensors of Coal gasification technology who have proven capability to process i. Coal with Ash content of 35% 40% (Dry Basis) or ii. Blended Coal with Ash content of 30%-35% (Dry Basis) are invited to submit necessary documents in support of their technical and financial capabilities for pre-qualification. The Project will be setup by a SPV (of the Consortium) on a LSTK basis through a competitive bidding process. The selected Licensors will be required to have 5% equity in the SPV. Pre-qualified Licensors will be eligible for participation in the Project in association with the LSTK bidder and selection of LSTK bidder shall be made through international competitive bidding. The pre-qualification of licensors is only for Coal Gasification and not for purification and Ammonia Syn-gas production technologies. M/s Projects & Development India Limited (PDIL) have been retained as the Consultant for the project. For details of complete document of EOI, Licensors may please refer GAIL s Website www.gailonline.com Due Date &Time for submission of EOI: 31.07.2014,14:00hrs (Indian Standard Time) Page 3 of 15

SECTION-1 INVITATION FOR EXPRESSION OF INTEREST (EOI) Page 4 of 15

INVITATION FOR EXPRESSION OF INTEREST (EOI) FOR PRE-QUALIFICATION OF LICENSORS OF COAL GASIFICATION TECHNOLOGY FOR PROPOSED COAL BASED FERTILIZER CUM AMMONIUM NITRATE PLANT, AT TALCHER, DISTRICT ANGUL, ODISHA, INDIA 1.0 INTRODUCTION 1.1 GAIL (India) Limited, is India's flagship Natural Gas Company, integrating all aspects of natural gas value chain and its related services. GAIL's business portfolio includes 9,500 kms of gas pipeline, 2,000 kms of LPG pipeline, 7 gas processing plants, Petrochemical complex and 31oil and gas E&P blocks including two overseas blocks. GAIL is a promoter of three LNG receiving terminals in India. GAIL has also opened an office in Singapore to carry out LNG and petrochemical trading activities through GAIL Global (Singapore) Pte. Ltd. GAIL incorporated 8 joint venture companies &1wholly owned subsidiary company for pursuing city gas and CNG projects in India and also established presence in city gas and CNG sectors in Egypt and China through equity participation in three companies. GAIL also has 20% stake in Carrizo's Eagle Ford Shale acreage in Texas, USA via GAIL Global (USA) Inc. 2.0 BRIEF SCOPE OF WORK 2.1 GAIL is one of the members of consortium of GAIL (India) Limited, Coal India Limited (CIL), Rashtriya Chemicals and Fertilizers Limited (RCF), Fertilizer Corporation of India Limited (FCIL) ( Consortium ) to set-up a Coal gasification plant for production of Ammonia Synthesis Gas (N 2 +3H 2 ) and Carbon Dioxide Gas on Lump Sum Turn Key (LSTK) basis. The Coal gasification plant shall be of a size to produce Ammonia Synthesis Gas sufficient to be utilized as a feed for production of 2700 MTPD Ammonia, 3850 MTPD Urea and1000 MTPD of Ammonium Nitrate. 2.2 GAIL on behalf of consortium invites Expression of Interest (EOI) from internationally reputed technology licensor having the requisite Coal gasification technology and willing to provide the technology for production of Ammonia Synthesis Gas (N2+3H2) and Carbon Dioxide Gas on commercial basis. Page 5 of 15

3.0 PRE-QUALIFICATION CRITERIA 3.1 Technology / Technical Criteria: 3.1.1 Licensor should be capable of providing Basic Design Package of proven performance for Coal Gasifiers and associated equipment including Coal preparation if required, for gasifying: i. Coal with Ash content of 35% 40% (Dry Basis) or ii. Blended Coal with Ash content of 30%-35% (Dry Basis) on commercial basis. 3.1.2 The Coal Gasifiers /Gasification technology shall have at least one proven operating plant having one or multiple coal gasifiers with a total coal processing capacity of minimum1200 MTPD operating successfully on commercial basis with high ash coal as above and producing raw gas exit Gasifier equivalent to minimum quantity of 150,000 Nm3/hr Ammonia Synthesis Gas (3H 2 +N 2 )/ Methanol production. Licensor shall provide details of at least one commercial plant which has operated successfully for minimum one year (8000 hrs) continuously in the last 7 years period from the date of issue of the this EOI. 3.1.3 The reference unit shall be non-captive (not wholly owned by Licensor himself). 3.1.4 Licensor shall submit documentary proof from their plant owner s OR their own plant as operators in the form of plant logbooks and laboratory analysis OR any other documents to verify that quality of Coal processed is: i. Coal with Ash content of 35% 40% ( Dry Basis) or ii. Blended Coal with Ash content of 30%-35% ( Dry Basis) and the combined Coal throughput achieved in Gasifiers is 1200 MTPD. Page 6 of 15

3.1.5 The Licensor should also be prepared to participate in the project with minimum 5% equity. An undertaking to that extent is required to be submitted for becoming eligible to be shortlisted for providing the license. 3.1.6 The pre-qualification of licensors is only for Coal Gasification and not for purification and Ammonia Syn-gas production technologies. However, technology compatible for gas purification like Sulphur removal, CO2 removal and CO shift conversion may be mentioned. 3.2 Financial Criteria Net Worth Net Worth of the Company should be positive as per the immediate preceding year s audited financial results. 3.3 General 3.3.1 The Licensor must not have been debarred / blacklisted by any Govt. Department, Agency, PSUs/ Institution/Agencies/Autonomous Organisations. The Licensor shall submit a self-certification by an authorized person to this effect. 3.3.2 Licensor should not be under liquidation, court receivership or similar proceedings. 3.3.3 GAIL will not be responsible for any costs or expenses incurred by the Bidder in connection with preparation or delivery of EOI. 3.3.4 EOI shall be submitted in hard copies as per instruction to the Licensors. EOI sent through e-mail with covering letter followed by hard copy through courier shall also be accepted. 3.3.5 GAIL reserve the right to reject any or all EOI received without assigning any reason. 3.3.6 Licensor to submit documentary evidence to support the references provided herein for fulfilling the Technology Criteria of EOI. The following are minimum documents required: a. Details of reference unit including the details of contact person(s). b. Extract of License agreement or relevant document as proof of same. c. End users certificate from the licensee (on licensee s letter head) to detail out following: Page 7 of 15

I. Capacity of the unit in terms of: i. Numbers of gasifiers & Type ii. Coal feed to each Gasifier (MT/day) iii. Total gas produced exiting Gasifiers. iv. Capacity of end product. v. Tentative proximate analysis of coal used in Gasifiers with special reference to Ash content. II. Date of commissioning & commercial production. III. Technology involved highlighting the following: i. Gasification process i.e. Moving Bed or Fluidised Bed or Entrained Bed Type. ii. Raw gas pre-treatment process. iii. Raw gas final treatment process and final gas composition. IV. Commercial performance of the unit for at least one year indicating plant load (average & highest), major operation problems & remedial measures taken and reasons of shutdown if not operating presently. V. Guarantee performance parameters and Confirmation on meeting guaranteed performance satisfactorily. 3.3.7 Licensor shall also furnish complete audited annual financial year statements including Balance Sheet, Profit & Loss accounts statement and all other schedules of immediate preceding financial year, self-certification of being not under liquidation, court receivership or similar proceedings, in the first instance itself, in support of their fulfilling the Licensor s Qualification Criteria. 3.3.8 In case of Foreign Licensor, if any of the documents in support of meeting EOI are not in English language, then the original document along with English translation of the same duly certified, stamped and signed by Local Chamber of Commerce or respective Embassy shall be furnished. 3.4 Date & Time for Submission of Proposal (EOI): The due date & time for submission of Proposal (EOI) by the Licensor is 31.07.2014, 14:00 hrs (Indian Standard Time). 3.5 Clarification, if any, can be obtained from Mr.S. K. B h a l l a Dy. General Manager (PD-GP), GAIL (India) Limited through E-mail: skbhalla@gail.co.in Page 8 of 15

SECTION-2 INSTRUCTIONS TOLICENSORS FOR SUBMISSION OF EXPRESSION OF INTEREST Page 9 of 15

1.0 INTRODUCTION 1.1 DEFINITIONS 1.1.1 Owner means GAIL (India) Limited (GAIL), a company incorporated in India and having its registered office at GAIL Bhawan, 16, Bhikaji Cama Place, New Delhi 110066 (India) and shall include its successors and assigns. 1.1.2 Consultant means Projects & Development India Limited (PDIL), a company incorporated in India. 1.2 SCOPE OF WORK The brief scope of work and pre-qualification criteria have been provided under the Invitation for Expression of Interest. 1.3 OWNER'S RIGHT TO ACCEPT / REJECT The GAIL reserves the right to accept or reject any EOI and to annul the bidding process and reject all EOI at any time without thereby incurring any liability to the affected Licensor or any obligation to inform the affected Licensor of the grounds for the GAIL's action. 2.0 PREPARATION/ SUBMISSION OF EXPRESSION OF INTEREST 2.1 LANGUAGE OF EOI The EOI and all correspondence incidental and related to EOI shall be in English language. Any printed literature and document submitted in any other language should be accompanied by authenticated English translation, in which case, for purpose of interpretation of the EOI, English translation shall govern. Responsibility for correctness in translation shall lie with the Licensor. 2.2 COST OF BIDDING The Licensor shall bear all costs associated with the preparation or delivery of its EOI, participating in discussions etc. including costs and expenses related with visits to GAIL s office and the site(s). GAIL will in no case be responsible or liable for those costs and expenses regardless of the outcome of the bidding process. 2.3 DOCUMENTS COMPRISING EOI 2.3.1 The EOI must be complete in all respect leaving no scope for ambiguity. It is in the interest of Licensor to submit complete and comprehensive proposal leaving no scope for GAIL to raise any further questionnaires. GAIL may evaluate the Licensor on the basis of document submitted in the first instance in order to adhere with project schedule requirements. 2.3.2 Licensors is required to make a proposal in a format as outlined in the Check list enclosed in this EOI document in order to achieve the objective of maintaining uniform proposal structure from all the Licensors. These requirements must be adhered to by all the Licensors. Page 10 of 15

2.3.3 Licensor shall submit the following for expressing their interest: i) Cover letter giving brief introduction and expressing interest to participate in Bidding process. ii) iii) 2.4 SUBMISSION OF EOI Information details as per FORM-1 and Prequalification criterion as per FORM-2 along with supporting documents such as copies of work order, contract agreement, completion certificate etc. Financial details as per FORM-3 along with all requisite documents such as Audited Balance Sheet, Profit & Loss Account for the immediate preceding financial years. Licensors are required to send the complete proposal / EOI document along with all supporting documents duly signed & stamped on each page (in original + one copy) so as to reach at the following address within the due date & time: GAIL (India) Limited GAIL JUBILEE TOWER 7 th Floor, B-35 & 36, Sector-1, Noida-201301 Gautam Budh Nagar INDIA (+91)120 2446400 Attn.: S. K. B h a l l a, Dy. General Manager (PD-GP) In case of submitting EOI through e-mail, the e-mail is required to be sent to skbhalla@gail.co.in. 2.5 OWNER SRIGHT 2.5.1 GAIL reserve its right to call for original of the supporting document submitted for verification, if required and also to crosscheck any details as furnished by the Licensor from their previous Clients / Consultants etc. Licensor shall have no objection what so ever in this regard and shall facilitate GAIL to obtain the same. 2.5.2 GAIL reserves the right to make use of available in-house data also for pre-qualification of Licensor(s) who have submitted EOI. 2.6 CONTACTING GAIL No Licensor shall contact GAIL on any matter relating to its EOI from the time of submission of EOI unless requested so in writing. Any effort by a Licensor to influence GAIL in the decision making in respect of EOI will result in the rejection of that Licensor. Page 11 of 15

INFORMATION FORM-1 LICENSOR IS REQUESTED TO COMPLETE THE FOLLOWING QUESTIONNAIRE SR. DESCRIPTION LICENSOR SRESPONSE REMARKS NO. 1 Willingness to provide the requisite proven license technology for commercial use to GAIL/Consortium / LSTK bidder (YES/NO) (Refer clause-2.2 of invitation for EOI) 2 Complete reference list of all the units licensed (YES/NO) (Refer clause-3.1.2of invitation for EOI) 3 Willingness to participate in the project with minimum 5% equity (YES/NO) (Refer clause-3.1.5of invitation for EOI) Page 12of 15

SPECIFIC EXPERIENCE FOR PRE-QUALIFICATION CRITERIA FORM-2 Licensor shall furnish their experience details of the reference unit for pre-qualification: S.NO. DESCRIPTION DETAILS 1. Name of project and location (Referclause-3.1.1to 3.1.4ofinvitationforEOI) 2. Project Details: Capacity of the project (units) (Refer clause-3.1.1to3.1.4of invitation for EOI) 3. Name of Owner, Postal Address, Phone/Fax No./E-mail Address (Refer clause-3.3.6(a)of invitation for EOI) Page 13of 15

S.NO. DESCRIPTION DETAILS 4. Supporting Document as above and as per clause 3.3.6 if Invitation of EoI Extract of License agreement as per clause 3.3.6(b) Yes No Page No. of PQ Bid Whether copy of Work Order /Contract Agreement enclosed Yes No Page No. of PQ Bid Capacity of the unit as per clause3.3.3(c-i) Yes No Page No. of PQ Bid Certificate for successful commissioning with date of commissioning & commercial production enclosed Yes No Page No. of PQ Bid_ Certificate regarding satisfactory operation of plant for the last one EOI due date Yes No Page No. of PQ Bid_ Commercial performance of the unit as per clause 3.3.6(c-IV) Yes No Page No. of PQ Bid_ year from Coal gasification technology is compatible for gas purification like Sulphur removal, CO2 removal and producing CO Shift reaction as per clause 3.1.6 Yes No Page No. of PQ Bid_ Page14of 15

DETAILS OF NET WORTH (Refer clause-3.2 of invitation for EOI) FORM-3 DETAILS OF NET WORTH (US$/INR) FINANCIAL YEAR PAID UP CAPITAL (a) FREE RESERVE (b) ACCUMULATED LOSS (c) NET WORTH (a+b-c) As per immediate preceding financial year Annual Report / Financial statement for the immediate preceding financial year shall be submitted along with EOI. Page15of 15