Project Profile Document

Agro - Food Park

at

Bagalkot

Bagalkot District

 Karnataka

* The base data for the profile has been taken from the project report prepared by Technical Consultancy Services Organization of Karnataka (TECSOK)

Food Karnataka Limited

C/o KSIIDC

36, Cunningham Road

Bangalore – 560 052

Ph. No. 2269188/2258131

Fax. No. 2255740/2280220

Email: gimblr@vsnl.com

1.0     1.0    INTRODUCTION

1.1  1.1            Introduction

Karnataka State is endowed with abundant agricultural assets and Karnataka's farmers have earned a reputation for rapidly embracing change and adopting new practices. National seed industry sources much of its annual requirements from several districts of the State. From late 1980's Karnataka has played a lead role in adoption of hybrid corn, attaining India's highest unit area corn yields.

The State has emerged as the preferred destination for new investments. In recent months several policy initiatives have aimed at the rapid growth of industry and trade in the State. The success of the Global Investors Meet has also demonstrated that investors worldwide see Karnataka as an exciting opportunity for investment.

In the State's strategy, a major focus sector is the Agro-Food Processing Industry. Karnataka has several strategic advantages in Agro-Food processing. A number of conducive Agro climatic zones, a wide range of possible produces, considerable      R & D Institutional support, the presence of several private sector food majors, an emerging retail food chain, significant production of Vegetables and Fruits, a long coastline with potential for sea food processing, and a strong network of milk co-operatives make Karnataka a significant player in the Agro-Food Processing Industry.

Karnataka is richly endowed with tropical and sub-tropical crops. The total food grain production in the state was 99.77 lakh tons from 73.80 lakh hectares comprising of cereal crop (92.55 lakh tons from 55.69 lakh hectares) and pulse (7.22 lakh tons form 18.11 lakh hectares). The oil seeds production was 17.11 lakh tons in 24.31 lakh hectares and the total fruit production was 54.54 lakh tons in 3.25 lakh hectares. Horticulture covers 18.5 lakh hectares with a production of over 134 lakh tones. In the last ten years, area under horticulture has increased by 4 lakh hectares and is expected to increase annually by 4%. The total exports of food and Agri products from Karnataka for the year 2000-2001 was of the order of Rs 1551.41 crores. The productivity in agricultural area in Karnataka is above the national average and with a growing number of progressive farmers in the State, the Agro-Food processing industry is expected to achieve a higher growth rate. 

To accelerate the promotion of Agro-Food processing industry, the Government of Karnataka with the assistance of Ministry of Food Processing Industries (FPI), Government of India has planned a number of Agro-Food Parks in the State. The State Government has already taken the initiative to establish Food Karnataka Limited; a public limited company promoted by Karnataka State Industrial Investment and Development Corporation Limited (KSIIDC) and Karnataka Industrial Areas Development Board (KIADB). 

1.2        1.2          Food Karnataka Limited

 The main objectives of Food Karnataka Limited are:

·         ·        To promote private sector investment in the establishment of Agro-Food Technology Parks

·         ·        To setup Agro-Export Zones

·         ·        To formulate exclusive policies for the Agro-Food Processing Industries

·         ·        To position Karnataka as the ideal location for investors in India’s Food Industry.

·         ·        To promote World Class Infrastructure for Karnataka Agri Business and

·         ·        To build ‘Grown ad Processed’ in Karnataka as an internationally recognized symbol of quality.

1.3        1.3       Locational details of the project area

1.3.1        1.3.1       Project Location

The Agro-Food Park in Bagalkot, Bagalkot District is located near the New Bagalkot Town about 5 kms. from the existing town on South West direction. The new site is surrounded by Bagalkot – Muchakhandi Road on east, Hubli – Sholapur Road on west, Gaddanekeri, Kesnur and Murnal hills on north and Muchakandi hills on south.

1.3.2        1.3.2       Advantages of the Project Area

The major advantages of Bagalkot as the location for one of the proposed ‘Agro-Food Park’ are as follows:

(a)               (a)             Bagalkot is rich in Agriculture and Horticulture produce which will support the Agro-Food park and the Candidate Industries with abundant supply of raw materials

(b)               (b)             Good social infrastructure exists for the entrepreneurs / industrialists and also for the workers

(c)               (c)             Bagalkot district and the surrounding areas are presently having a range of industries covering cement, engineering, sugar, granite and building materials, traditional food processing etc.

(d)               (d)             The NH-13 passes through the district and Bagalkot town is 45 kms. away from the Highway. The district is well connected to other parts of the State by road and rail

(e)               (e)             The nearest Railway Station is at Bagalkot.

(f)                 (f)               The nearest airports and seaports to Bagalkot are:

                                                            _______________________________

                                                            Location                                  Distance

                                                                                                              (Kms)

                                                            _______________________________

                        (1)        Airports            Panaji, Goa                                275

                                                            Sambra, Belgaum*                    125

                        (2)        Seaports         Mormugao, Goa                         275

                                                            Karwar                                                   256

* Minor Airport            

1.3.3        1.3.3         Other Locational features of Bagalkot district :

1.2        1.4       Details of Horticultural & Agricultural Resources in the District

As Bagalkot district has been recently formed and was earlier part of Bijapur district,  statistics pertaining to agricultural production and farm resources are not separately available. Major horticultural and agricultural crops grown in the district are grapes, banana, citrus fruits, mango, sapota, pomegranate, tomato, carrot, leafy vegetables, onion, chillies, garlic, sugarcane, jowar, maize, pulses, groundnut, etc.

1.2.1        1.4.1       The area and production of important agricultural produces in Bijapur district including New Bagalkot district and the State of Karnataka are as follows :

  * LAKH NUTS

1.5       Candidate Industries

The candidate industries that could be established in the Agro-Food Park at Bagalkot, Bagalkot District are as follows: 

[A]       Agriculture Based:

1.                  1.               Corn flakes

2.                  2.               Oil Extraction

3.                  3.               Animal feed

4.                  4.               Breakfast cereals

5.                  5.               Flour Mills

6.                  6.               Malted foods

7.                  7.               Modern Bakery

8.                  8.               Weaning food

9.                  9.               Noodles and Vermicelli

[B]       Horticulture Based:

1.                  1.               Dehydrated vegetables (onion, garlic, etc.)

2.                  2.               Lime and lemon products (juice, squash, cordial, etc.)

3.                  3.               Grape raisin

4.                  4.               Pickles & Chutneys

5.                  5.               Tamarind paste, powder & concentrate

6.                  6.               Fruit squashes and syrups

7.                  7.               Tomato paste / puree

8.                  8.               Tomato sauce / ketchup

9.                  9.               Fruit jams, jellies and marmalades

10.              10.            Fruit bars

[C]       Ohers:

1.                  1.               Dairy products (milk & milk products)

2.                  2.               Soft drinks and mineral water

3.                  3.               Bio enzymes

4.                  4.               Bio-fertilizers

5.                  5.               Bio-pesticides

6.                  6.               Tissue culture

7.                  7.               Gherkins

8.                  8.               Packing Cartons

9.                  9.               Plastic packaging materials

1.7             Map of Bagalkot District

2        2       PROJECT DETAILS

2.1        2.1       Infrastructure and Facilities existing

a)                  a)               60 acres of marketable plots of different dimensions have already been developed by KIADB. Though plots have been demarcated by KIADB, JV Company may change the land use to suite to the practiced planning standards and shall take the necessary approvals.

b)                  b)               Internal roads of about 3.4 kms. having a width of 12 meters / 18 meters have been constructed in the Agro-Food Park by KIADB.

c)                  c)               Approach road of 24 meters width exists, which connects the Agro-Food Park to the New Bagalkot Town. 

d)                  d)               Side drains have been constructed by KIADB along the road 6,7,8,9,10,15,16,14,13,12,11. The JV Company may construct / upgrade the existing side drains according to the need of the Project.

e)                  e)               Culverts on the road junction 10&9, 14&12, 12&13, 12&14, 10, 16 and village road has been constructed by KIADB. JV Company may construct more number of culverts or may upgrade the existing culverts. 

2.2        2.2       Infrastructure and Facilities proposed

a)                  a)               The water requirement of the Agro-Food Park is projected at approximately 2.5 million litres per day. To meet this water requirement, it is proposed to construct 2 nos. of GLSR (ground level storage reservoir) with 10 lakh litres capacity and one overhead tank with 5 lakh litres capacity. The JV Company shall calculate the water requirement and may plan accordingly. 

b)                  b)               The power requirement of the Agro-Food Park is projected at 2 MW. JV Company shall co-ordinate with KPTCL for the power needs of the Agro-Food Park. 

c)                  c)               Telecommunication: BSNL is the telephone service provider in the Bagalkot district which will suffice the telecommunication needs of the Agro-Food Park. The JV Company may set-up an internal EPABX or Local Exchange to meet the communication needs within the Agro-Food Park.

d)                  d)               Common effluent treatment, water treatment and recycling of water facility would be planned and constructed by the JV Company to meet the requirement of the industries in Agro-Food Park.

e)                  e)               An Office – cum – commercial complex may also be planned and constructed by the JV Company to meet the office space requirements for the units in the industrial area for service providing agencies, secretarial services, telecommunication, computer / internet facilities etc., and also for offices of government agencies.

f)                    f)                 JV Company shall plan and construct Warehousing facilities, Cold Storage, etc. in the Agro-Food Park to serve the storage needs of the candidate Industries.

g)                  g)               Maintenance services of the facilities in project area.

2.3        2.3       Estimated Project Cost              :                                               Rs.1847.29 lakhs

2.4        2.4       Proposed Means of Finanace               :                                              Rs. Lakhs

Contribution of Go I /GoK by way of

equity investment through FKL                                                             800.00           

J V Partner                                                                                            1047.29  

                                                            TOTAL                                               1847.29

2.5        2.5       Income generation                                  :          

            One Time incomes                 :           (i)         Sale of industrial plots

(ii)                (ii)              Deposits for rental premises (refundable)

Recurring incomes                 :           (iv)       Rental incomes

(iii)               (iii)            Maintenance / water/ Misc.charges etc.

2.6    Implementation period            :           Eighteen Months from the date of signing of the

MoU between JV Partner and Food Karnataka Limited.

3        3       PROJECT COST

3.1        3.1          Cost of the Project:

The cost of the project as estimated by TECSOK is Rs. 1847.29 lakhs. However the JV Partner shall visit the site, prepare a business plan for the Agro-Food Park at Bagalkot, Bagalkot District.

The project cost has the following components:

Land

The cost of land has been estimated at Rs 100.00 lakhs at the rate of Rs 1.00 lakh per acre.

Infrastructure

The cost of infrastructure comprising land development, formation of roads, drainage system, water and power supply system, telecommunication and other facilities has been estimated at Rs. 618.95 lakhs.

Common Facilities

The common facilities comprising office–cum-commercial complex, incubation centre, testing laboratory, water treatment plant and common effluent treatment plant, warehousing, cold storage and generators have been estimated at Rs. 718.45 lakhs.

Preliminary and Pre-operative Expenses

The preliminary and Pre-operative expenses for the project like consultancy charges, project monitoring expenses, office overheads and provision of funds for marketing and promotional activities including interest during implementation period have been estimated at Rs.253.15 lakhs. 

Physical & Price Contingencies

Contingency of Rs 156.74 lakhs has been provided for the project. 

Expression of Interest Document for Agro-Food Park

at

 Bagalkot

 Bagalkot District

 Karnataka

Food Karnataka Limited

C/o KSIIDC

36, Cunningham Road

Bangalore – 560 052

Ph No. 2269188/2258131

Fax No. 2255740/2280220

Email: gimblr@vsnl.com

EXPRESSION OF INTEREST DOCUMENT

Food Karnataka Limited promoted by Karnataka State Industrial Investment and Development Corporation Limited (KSIIDC) and Karnataka Industrial Areas Development Board (KIADB) invites JV Partner for the promotion and development of Agro-Food Park in Bagalkot, Bagalkot District, Karnataka, India. For this an Expression of Interest has been prepared.

Notes:

1. This EOI Document consists of:

    Part I: EOI Process Document

    Part II: Project Profile Document

2. This Part I- EOI Process Document contains 33 pages.

3.  The prospective bidder would have to be necessarily registered with FKL, by  submitting the Registration Letter overleaf, as a precondition to participation in the bidding process.

1.                  REGISTRATION LETTER

1 REGISTRATION LETTER

(Interested Bidders are requested to provide the following letter immediately upon obtaining the document)

Date :

Place :

The Chairman

Food Karnataka Limited

C/o KSIIDC

36, Cunningham Road

Bangalore – 560 052

Dear Sir,

Sub : Selection of a JV Partner for promotion and development of Agro-    Food Park Bagalkot, Bagalkot District , Karnataka, India on a Joint Venture (JV) with FKL.

We ________________ (Name of the Entity), hereby confirm that we have received/downloaded the Expression of Interest Document. We are interested in bidding for the above-mentioned Project and request you to provide additional information/clarifications/updates as may arise from time to time. We understand that this letter does not constitute an obligation to bid.

We ________________ (Name of the Entity), designate Mr./Ms. (mention name, designation, contact address, phone no., fax no., E-mail id, etc.), as our Authorised Representative and Signatory who is authorised to perform all tasks including, but not limited to receiving and providing information, responding to enquiries etc. on behalf of us in respect of the Project.

For and on behalf of :

Signature :

(Authorised Representative and Signatory)

Name of the Person :

Designation :

2.                  A COPY OF THE ADVERTISEMENT IS PRESENTED BELOW.

INVITATION FOR EXPRESSION OF INTEREST FOR PROMOTION AND DEVELOPMENT OF AGRO - FOOD PARKS IN KARNATAKA

FOOD KARNATAKA LIMITED (FKL) promoted by Karnataka State Industrial Investment and Development Corporation Limited (KSIIDC) and Karnataka Industrial Areas Development Board (KIADB) invite Joint Venture Partners for the Promotion and Development of six Agro – Food Parks in Karnataka. The objectives of FKL are to promote Agro-Food processing industry in the State, encourage private sector investment in the establishment of Agro-Food parks and promote infrastructure facilities for Karnataka Agri Business. The JV Company will plan the infrastructure, finance, market and manage the Agro – Food Parks. The allocation and pricing of the developed land, infrastructure facilities and services would be left to the JV Company.

Proposed Projects :

1. Malur  III Phase, Kolar District  – 60 Acres     4. Maddur, Mandya District - 60 Acres

2. Bagalkot, Bagalkot District – 100 Acres         5. Halaga, Belgaum District – 100 Acres

3. Jevargi, Gulbarga District – 105 Acres          6. Hiriyur, Chitradurga District – 66 Acres

Prerequisite:

The bidders should have a Tangible Net Worth of not less than Rs. 10 crores (US$ 2.1 million) as per the audited balance sheet of the preceding financial year.

Desirable:

It is desirable that the bidder should have been a major investor  in an infrastructure project of value not less than Rs. 20 crores  (US$ 4.2 million) in the last 5 years preceding 31st March 2003,

The Process:

Bidders are invited to provide Expression of Interest (EOIs) for the project. The JV Partner will be selected through a Competitive bidding process. 

The EOI document detailing the selection process and project profile may be obtained from FKL at the address given below, from 6^th August 2003 to 5^th September   2003, on any working day, between 10.00 am and 5.00 pm. It can also be downloaded from our website: www.ksiidc.com. EOIs must reach FKL , at the address given below not later than 17.30 hrs of 5^th September  2003.

The Chairman

Food Karnataka Limited

C/o KSIIDC

36 Cunningham Road

Bangalore – 560 052

Ph. No. 2269188/2258131

Fax No. 2255740/2280220

Email :gimblr@vsnl.com

Note: FKL reserves the right to withdraw from the process or any part thereof, to accept or reject any or all offers at any stage of the process and /or modify the process or any part thereof or to vary any terms at any time without assigning any reasons whatsoever. No financial obligations, whatsoever shall accrue to FKL in such an event. FKL shall not be responsible for non-receipt of correspondence sent by post/courier/e-mail/fax.

1.      DISCLAIMER

3 CLAIMER

1. Though adequate care has been taken in the preparation of this Expression of Interest Document, the Bidder should satisfy himself that the Document is complete in all respects. Intimation of discrepancy, if any, should be given to the below mentioned office immediately. If no intimation is received by this office by the date mentioned in Section 7.6, it shall be deemed that the Bidder is satisfied that the Expression of Interest Document is complete in all respects.

The Chairman

Food Karnataka Limited

C/o KSIIDC

36, Cunningham Road

Bangalore – 560 052

2. Neither FKL, nor their employees or consultants make any representation or warranty as to the accuracy, reliability or completeness of the information in this EOI and it is not possible for FKL to consider the investment objectives, financial situation and particular needs of each party who reads or uses this EOI. Certain prospective Bidders may have a better knowledge of the Project than others. Each prospective Bidder should conduct his own investigations and analysis and check the accuracy, reliability and completeness of the information in this EOI and obtain independent advice from appropriate sources.

3. Neither FKL nor their employees or consultants will have any liability to any prospective Bidder or any other person under the law of contract, tort, the principles of restitution or unjust enrichment or otherwise for any loss, expense or damage which may arise from or be incurred or suffered in connection with anything contained in this EOI, any matter deemed to form part of this EOI, the award of the Project, the project information and any other information supplied by or on behalf of FKL or their employees, any consultants or otherwise arising in any way from the selection process for the Project.

4. FKL reserves the right to withdraw from the process or any part thereof, to accept or reject any or all offers at any stage of the process and /or modify the process or any part thereof or to vary any terms at any time without assigning any reasons whatsoever. No financial obligations, whatsoever shall accrue to FKL in such an event. FKL shall not be responsible for non-receipt of correspondence sent by post/courier/e-mail/fax.

5. FKL reserves the right to reject any or all of the EOIs submitted in response to this Expression of Interest at any stage without assigning any reasons whatsoever.

6. FKL reserves the right to change any or all of the provisions of this Expression of Interest. Such changes would be intimated to all parties procuring this Expression of Interest.

7. FKL reserves the right to change, modify, add to or alter the Selection Process including inclusion of additional evaluation criteria for further shortlisting of Bidders at later stages. Any change in the selection process shall be intimated to all concerned parties.

2.            ABBREVIATION

EOI                  Expression of Interest

FKL                 Food Karnataka Limited

FPI                   Ministry of Food Processing Industries

GoK                 Government of Karnataka

GoI                   Government of India

Ha                    Hectare

JV                    Joint Venture

JVC                 Joint Venture Company

JVP                  Joint Venture Partner

KIADB             Karnataka Industrial Areas Development Board

KSIIDC            Karnataka State Industrial Investment and Development Corporation Limited

RFP                 Request for Proposal

SPV                 Special Purpose Vehicle

3.      DEFINITION

5 DEFINITIONS

Bid Documents

The Document issued by FKL as part of the Bid Process.

Bid Process

The various activities taken up by FKL leading up to the selection of the Successful Bidder

Bidder

Bidding Company or Bidding Consortium, as defined below, that has submitted an EOI in response to this Expression of Interest Document.

Bidding Company

If the EOI for the Project is submitted by a single entity, it shall be referred to as a Bidding Company. The Bidding Company would necessarily have to be an Eligible Entity.

Bidding Consortium

If the EOI for the Project is submitted jointly by more than one entity, then this group of entities shall be referred to as a Bidding Consortium.

Consortium Member

Each entity in the Bidding Consortium shall be referred to as a Consortium Member. Each Consortium Member would necessarily have to be an Eligible Entity.

Document

This Expression of Interest Document

Eligible Entity

An Eligible Entity is one, which satisfies at least one of the following:

The entity is a Company under The Companies Act, 1956 OR an incorporated entity under equivalent Acts, in case of foreign entities

(OR)

The entity is a Partnership firm under the Indian Partnership Act, 1932 or the equivalent Acts in case of foreign entities

Expression of Interest (EOI)

The expressions of interest submitted to FKL by the Bidders in response to this Expression of Interest Document issued by FKL.

First Stage

First Stage refers to the first step of the Bid process consisting of the Expression of Interest by the Bidders and shortlisting of the Bidders.

Infrastructure Project

Infrastructure project are projects involving construction of roads, bridges, railways, power, ports, port terminals, water supply infrastructure, sewerage infrastructure, airport, telecommunications network, fluid pipelines, real estate project or industrial area development project.

JV Company

A project company incorporated jointly by the successful bidder and FKL for the promotion and development of the Agro-Food Park at Bagalkot. The successful bidder could take upto 89% of the equity stake in the JV Company and FKL as a facilitating agency would be keen to take up between 11% and 26% of the equity of the JV Company. However the extent of participation by the successful bidder & FKL could be mutually discussed to arrive at a consensus.

Lead Consortium Member (LCM)

In case of a Bidding Consortium, the Lead Consortium Member (LCM) shall be that Consortium Member vested with the prime responsibility of developing the Project. The Lead Consortium Member should have a major stake of not less then 2/5^th of the proposed overall equity of the JV Company.

The MOU to be entered into between the Consortium Members during the Second Stage as per Section 10 shall reflect the above. The LCM shall be the authorised representative of the Bidding Consortium and shall be liable to FKL for all the obligations of the Bidder. The Lead Consortium Member would necessarily have to be an Eligible Entity.

Major Investor

An eligible entity who has a major stake of not less than 2/5^th of the total project cost of an infrastructure project.

Occupants

Occupants refers to the industrial units that locate their facilities and operations in the Agro-Food Park at Bagalkot, Bagalkot District, Karnataka.

Project

The Project refers to the development of the Agro-Food Park at Bagalkot, Bagalkot District   as per the conditions of this Document, any subsequent detailed Document provided by FKL as part of the Bidding Process, the Business Plan of the Successful Bidder and as per the terms of the JV Agreement and/or any other Agreement entered into between the Successful Bidder and FKL.

Project Company

Project Company shall mean the Joint Venture Company to be incorporated for the promotion and development of the Project.

Registered Entity

Registered Entity refers to an eligible entity which has submitted the Registration Letter as per the format provided in Section 1.

Request for Proposal (RFP)

The Request for Proposal consists of the technical capability, financial capability, business plan and commercial offer that would be requested from Shortlisted Bidders by FKL.

Second Stage

Second Stage refers to the process leading up to the selection of the Successful Bidder after the First Stage. The Second Stage of the Selection Process would involve calling for a Request for Proposal (RFP) document from the shortlisted bidders that will consist of: Technical Capability, Financial Capability, Business Plan and the Commercial Offer .

Selection Process

Same as 'Bid Process'

Shortlisted Bidder(s)

The Bidders meeting the Minimum Eligibility Criteria (both Financial Capability and Technical Capability) as given in this Expression of Interest Document would be eligible for participation in the Second Stage of the Selection Process and shall be referred to as Shortlisted Bidders.

Subsidiary

For a Bidding Company or a Lead Consortium Member, only those entities would be “Subsidiary(ies)” in which the Bidding Company / Lead Consortium Member: hold(s) not less than 51% of the voting securities, either directly or indirectly, in case the relevant entity is a company. Holding an indirect stake in a company implies a stake held in the company through a chain of other companies, in which event, the percentage holding would be considered on proportionate terms,

OR

• is a partner with not less than 51% of share of the profits, in case the relevant entity is a partnership firm.

Successful Bidder

In the Second Stage of the Bid Process the Bidder who is ranked highest, according to the detailed scoring criteria that is to be finalised as a part of the Bid Process and which will be applied to all Shortlisted Bidders, would be the Successful Bidder.

4.            INTRODUCTION AND BACKGROUND

The site planning, plot demarcation, internal roads, culverts and drains have already been taken up by the KIADB, but the Joint Venture Company may include the understated aspects for the development and promotion of the Agro-Food Park at Bagalkot, Bagalkot District.

Conceptualization, Design and Planning, Financing, Marketing, Development of Necessary Infrastructure, Provision of Necessary Services, Operation & Maintenance of Infrastructure, Administration and Management.

The various Project Activities for achieving this would include:

1. Project conceptualization, Design and Planning

2. Raising finances for the Project as and when required

3. Marketing to attract other investors and Occupants

4. Land Development, reclamation and leveling

5. Provision of industrial plots of land, Ready-built factories, multi-storied buildings and other types of space for Occupants.

6. Development of Necessary Infrastructure such as Road network, Street lighting; Storm water drainage, Gardening and beautification.

7. Provision of Necessary Services such as Power, water, Telecommunication, Sewerage disposal, solid waste removal and effluent treatment, Piped Gas, Steam, Transportation and Security.

8. Coordinating with trunk infrastructure providers (main water supply, link roads, railways etc.)

9. Operation & Maintenance of infrastructure

10. Administration and Management of the Project Area

11. Discharge any obligations and comply with rules and regulations as laid down by various Legal and Regulatory Authorities.

12. Role of the Project Company may also include those performed by a municipal body/township authority as may be specified from time to time by the Concerned Authorities.

13. Any other activities that may be required for the successful development of the Agro-Food Park at Bagalkot, Bagalkot District, Karnataka and conduct of operations by the Occupants.

The Project Scope and contract issues would be refined as a part of the selection process after the EOI.

Further details of the Agro-Food Park at Bagalkot, Bagalkot District, Karnataka are provided in Part II: Project Profile Document.

5.            DESCRIPTION OF THE SELECTION PROCESS

7.1 SELECTION PROCESS

The selection process involves an Expression of Interest followed by a detailed evaluation of Shortlisted Bidders, and their proposals.

The Expression of Interest stage is described below in detail. The description of the Selection Process after the EOI in this Document is brief and indicative in nature, and has been provided so that Bidders develop an appreciation of the approach governing the design of the detailed Selection Process. The process to be followed for the selection shall be specified in the Request for Proposal after the receipt of EOIs, which would be made available to the Shortlisted Bidders.

7.2 FIRST STAGE (EXPRESSION OF INTEREST)

As a part of the First Stage of the Selection Process, FKL is issuing this Expression of Interest Document, inviting prospective Bidders to submit their proposals indicating their Expressions of Interest (EOIs). The information required to be provided by the Bidders submitting their EOIs is outlined in Section 15, Section 16 and Section 17.

The EOIs submitted by Bidders shall be initially scrutinized to establish “Responsiveness”.

An EOI may be deemed “Non-responsive” if it does not satisfy any of the following conditions:

• It is not received by the due date specified

• It does not include sufficient information for it to be evaluated and/or is not in the formats specified

• It is not signed and / or sealed in the manner and to the extent indicated in Section 9.3 of this EOI Document.

The EOIs of “Responsive” Bidders shall be evaluated to check for compliance with the Minimum Eligibility Criteria as per stipulations detailed in Section 8. Shortlisted Bidders shall be subsequently invited to submit their capability and detailed proposals as a part of the Second Stage of the Selection Process.

7.3 SECOND STAGE

Bidders should note that while they are required to meet the basic Minimum Eligibility Criteria as a part of the EOI, they would also be subjected to a more detailed evaluation as a part of the Selection process beyond the EOI, i.e. the Second Stage. This could entail an assessment on the following:

a) Technical capability wherein the capability of the bidder to take up the Project Activities (such as the ability to implement large-scale infrastructure projects, to implement and operate large scale agro food processing projects, to market industrial real estate) would be assessed.

b) Financial capability (such as ability and track record in raising both debt and equity for large projects) wherein the capability of the bidder to fund the Project activities would be assessed.

c) Business Plan (based on the project profile to be provided by FKL to the Shortlisted Bidders) submitted by the Bidder outlining the Bidders conception of the project and comprehensive strategy for execution of the project. The bidder will also have to make a presentation of the business plan on its own cost to the FKL on a date finalized by FKL.

d) Commercial Offer involve a Request for Proposal consisting of the above components.

FKL would retain the right within the above broad framework to make modifications, which would be applied, uniformly to all shortlisted Bidders. The detailed scoring parameters and weightages would be presented in the Request for Proposal documents issued after the receipt of EOIs. Once Bidders have cleared the Minimum Eligibility Criteria in the EOI Document, after receipt of the RFP documents detailing the scoring criteria, Shortlisted Bidders would also be permitted to strengthen/modify their consortia in light of the detailed scoring criteria, if they so desire.

However, as regards the Lead Consortium Member whose strengths have been credited, if a change is proposed in identity or in proposed stake, the same would have to be with the approval of FKL. In no case, however, should the Minimum Eligibility Criteria be violated.

The Principles of the memorandum of understanding to be executed between the members of a consortium at a later stage have been provided in Section 10.

The Bidding Company/ Bidding Consortium bidding for the Project being the primary driver of the project could take up to 89% of the equity stake in the Project. FKL, as a facilitating agency, would be keen to take up between 11% and 26% of the equity of the JV Company. However the extent of participation by the bidding company & FKL could be mutually discussed to arrive at a consensus.

7.4 COMMITMENT TO A FAIR AND TRANSPARENT PROCESS

FKL is keen to ensure that the process leading to the selection of the Successful Bidder is fair, transparent, efficient, interactive, and protects the confidentiality of the information shared by Bidders with it. The selection process has been designed keeping these objectives in mind, and FKL shall take all steps to ensure that the above objectives are realised. These include:

_ The Board of FKL shall oversee the selection process.

_ Chesterton Meghraj has been appointed as an independent agency to advise FKL on the selection process.

_ FKL would also take the help of various other external agencies, such as legal and technical experts, to ensure that the process is objective, transparent and efficient.

7.5 FEES AND DEPOSITS TO BE PAID BY THE BIDDERS

7.5.1 Processing fee for Expression of Interest

A non-refundable Processing Fee of US$ 212 (US$ Two Hundred and Twelve only) or Rs. 10,000 (Rupees Ten Thousand only) is required to be paid by the Bidders along with the EOI. The processing fee by way of US$ could be remitted to Food Karnataka Limited account with Corporation Bank, Industrial Finance Branch, Bangalore, (swift code; corpin bb 438) through American Express Bank, New York, USA (swift code; Aeibus33). The Rupee payment would be made in the form of a Demand Draft drawn in favour of “Food Karnataka Limited” payable at Bangalore.

5.6  TIME TABLE AND MILESTONES – TENTATIVE SCHEDULE

1. In order to enable FKL meet the target dates, Bidders are expected to respond expeditiously to clarifications, if any, requested during the evaluation process. FKL shall adhere to the above schedule to the extent possible. FKL, however, reserves the right to modify the same. Intimation to this effect shall be given to all Bidders.

2. Time for implementation would be a critical factor impacting the success of the project and FKL is committed to ensuring that the selection process is speedy, fair and transparent.

3. Shortlisted Bidders shall be intimated upon completion of the evaluation.
4.  MINIMUM ELIGIBILITY CRITERIA FOR THE

EXPRESSION OF INTEREST

8.            MINIMUM ELIGIBILITY CRITERIA FOR THE EXPRESSION OF INTEREST 

The objective of the Minimum Eligibility Criteria is to identify bidders who have the financial capability and technical capability to take this project through to successful and timely completion.

8.1 CONSIDERATION FOR EVALUATION

The consideration for evaluation of the Minimum Eligibility Criteria is as follows:

1. The bidders should have a Tangible Net Worth of not less than Rs. 10 crores (US$ 2.1 million) as per the audited balance sheet of the preceding financial year.
2. They should have been a major investor in an infrastructure project of value not less than Rs. 20 crores  (US$ 4.2 million) in the last 5 years preceding 31st March 2003,

8.2 Definition

a) Tangible Net Worth = (Equity Capital + Reserves and Surplus - Revaluation Reserve) - (Accumulated Losses + Intangible assets).

b) Major Investor : An eligible entity who has a major stake of not less than 2/5^th of the total project cost of an infrastructure project.

8.3 SHORTLISTED BIDDERS

Only those Bidders who satisfy the prerequisites as stated in the advertisement for the expression of interest shall be shortlisted for the Second Stage and shall be termed Shortlisted Bidders.