TERMS AND CONDITIONS FOR LEASE OF STACH FACTORY

The lessee shall not be liable to pay the arrears of payments of starch suppliers payable prior to the execution of the agreement. The said liability shall be that of the starch factory.
Staff The lessee has liberty to engage the staff within the approved staffing pattern of the starch factory. The salaries, allowances and other monetary benefits payable to the staff of the factory employed by the lessee from date of agreement till the expiry of this agreement shall be paid by the lessee.
No additional staff shall be recruited by the lessee. If at all recruited, the liability thereof shall be that of the lessee and such staff will not be employed by factory at end of lease period.
During the period of the agreement, if any death or disability is caused to the staff members of the factory due to accident occupational decrease or negligence of the lessee, the damage, the compensation, medical expenses payable in such a event shall be paid by the lessee as per Law.
The Provident Fund Contribution and Labour welfare contribution of entire staff employed by the lessee during the period of the agreement shall be borne and paid by the lessee as per law.
The lessee shall be responsible to pay salary or any allowance to the staff of the factory, employed by the lessee as per the agreement with staff.
The lessee shall pay amount of gratuity to factory on rendered services and drawn wages by the staff employed by the lessee every year during the period of agreement as per the provisions of rules and laws with regards to Gratuity.
The lessee shall continue present rule of leave formed by the factory to its staff and also carry statutory and non statutory welfare facilities as provided by the factory During this agreement the lessee is liable to pay bonus to the staff (Employees) of factory on their rendered services as per law.
The lessee shall be lilable for and shall indemnify the lessor against any liability, loss, claim or proceedings whatsoever arising under any status are at common law in respect of any person caused during the period of this agreement.
Plant & Machinery The plant and machinery and other allied equipments in the factory which are meant for manufacturing of starch and bye-products shall be maintained and repaired by the lessee at its cost during the lease period. Also the insurance of plant and machinery and other property, in the joint name of The Maharashtra State Coop Bank Ltd., Maharashtra Chember of Commerce Lane, Fort Mumbai and factory shall be kept alive by the lessee at its cost.
The lessee shall not cause any damages or loss to the plant and machinery and allied equipments of the factory. If any such damage or loss is found, the same shall be compensated and reimbersed by the lessee to the factory/ Bank.
Apart from the existing godowns and stores building of the factory, if any other temporary godown or shed is required to be installed, the same shall be installed or erected on temporary basis by the lessee at its costs with the permission of Bank. The lessee shall not claim any compensation from the Bank towards erection of such temporary shed or stores.
The Plant & Machinery, other allied equipments and assets of the factory shall not be mortgaged or given as a security to any financial institution or others by the lessee under any circumstances. No charge, lien or any other right shall be created by the lessee
The internal roads, staff quarters, Jackwells, rising main, reservoir, spray pond, machinery foundation E.T.P., Borewell and pipe-line, sump well pipe-line, diesel pump and the buildings of the factory shall be maintained by the lessee.
The stores and spares which are already owned and possessed by the factory shall be made available to the lessee for its use durig day to day running of the factory but the lessee will pay to the Bank for such spares/stores/consumables delivered to the lessee at cost or market price whichever is maximum.
During the tenure of the agreement any kind of scrap material removed during the overhauling of machinery equipment shall be property of the Bank.
The machinery is pledged with the bank, prior written permission should be obtained if lessee want to replace / install any machinery. The bidder if replaces/ installs any machinery or part of machinery costing more than Rs.Two lacs lessee is allowed to take away such machiery or part after lease period is over. The machinery or part of machinery so installed want to take back then it must be inconsultation with the Authorised officer and an agreed list of such machinery or part of thereof be kept with them.
The payment towards the electricity and water bills received by the factory from the respective departments during the period of the lease agreement shall be paid by the lessee.

Tax & Other fees, charges etc. The lessee shall pay the Land Revenue, non agriculture tax, land cess, property tax or any other tax, duly or cess levied under the applicable law in respect of entire landed property of the lessor during the lease period.
License fees, fees at the time of renewal of all licence, boiler inspection fees, weight bridge, stamping fees & other fees whichever are required for commencement of production shall be borne and paid by the lessee.
The licence and permission should be kept alive and fes etc. required to be paid for that shall be paid by the lessee at its cost during the tenure of the agreement.
During the period of the agreement, any liabilities created by the lessee while undertaking the manufacturing of starch and allied by-products shall be with prior concent of the Lessor & is the responsibility of the lessee and such liabilities shall be discharged only by the lessee out of its own funds.
General The lessee shall maintain the accounts of its transactions pertaining to production of starch and by-product seperately and give the said reports to lessor at the end of every fortnight.
The factory shall not create any obstacle or hinderances in the work of the lessee during the period under the agreement
The period of this agareement shall be for Three years from the date of agreement till of the terminal year of lease period. After the expiry of last years, the lessee shall not be entitled to ask for extention/ renewal of the lease agareement.
Any Dispute between the parties with regards to the agreement shall be referred to the arbitrator/s, for arbitration with the mutually agreed arbitrator/s.
The lessee has to enter in the agreement with the Bank with all above or any other additional terms and conditions as agreed.
After completion of lease period if factory is to be given on lease for further period and if lessee enters into the tender the priority will be given to previous lessee for matching his offer with highest bidder.
The lessee shall perform its part of the asignment under this agreement with degree of high professional skill and sound practices and judgement which is normally exercised by recognised professional undertakings withrespect to assignments of similar nature and the lessee shall endeavor to use its professional skills to the best of its ability and do such and other acts incidental their to which will further the business interest of the lessor.
The lessee shall became the nominal member (B Class) of the lessor.
Including the strach Production years and end of the lease period, the lessee shall manufacture the strach and other bye products with the help of plant and machinery and supplementary equipment and other ancillary assets which are in existence of the factory. The activity shall be carried on by the lessee on hire basis for the period of three years with effect from date of agreement till the expiry of lease period which shall be deemed to be on after three years from the date of agreement.
The strach manufactured by the Lessee as well as bye-products shall be of the ownership of the lessee and as such the lessee would be entitled to dispose off the said starch and other allied bye-products during the period covered by this agreement subject to statutory compliances as required. The liabilities under the Sales tax Act, Income Tax Act, Excise Act, Purchase Tax Act and all other eligible taxes shall be discharged by the lessee out of the their own funds. The factory shallnot have any right or interst over the strach and bye-products manufactured by the lessee during the existence of the period under this agreement.
The existing stock of strach and other bye-product belonging to the factory under the control and possession of the Bank authority shall be property of Bank and as such the Bank is at liberty to dispose the said strach and bye-product as they desire in accordance with law.
The sale and export of the strach manufactured by the lesee during the period of this agreement shall be subject to the required permissions from the respective Governments and Authorities. The lessee is not entitled to claim any grants or subsidies from the Government of Maharashtra or Government of India as regards the strach produced during the lease period under this agreement except for a relief packages due to draught conditions. Further, however, considering the background of this agreement and the conditions of the factory, if any grants or subsidies including packages are declared by the State Government or the Government of India to the factory, the same shall be received only by the Bank and not by the lessee.
Lease Charges The Lessee shall pay to the factory the amount quoted in the offer per year as rental charges as under.
i) The lessee shall pay 50% of annual lease amount at the start of crushing season, 25% amount after 3 months and remaining 25% amount within 10 days of the completion of year. If there is no production lease annual rent shall be paid by the lessee to the lessor, If, such payments are delayed the lessee shall have to pay interest on the delayed amount at 14% p.a. The amount of minimum fixed rental charges for each year is irrespective of actual production.
ii) Lessee shall pay the bank guarantee in the first week of September of the amount equal to the minimum annual rent + 25% of the rent to the lessor every year. If, the guarantee not given till 15th of September the lease agreement stand terminated automatically.
The bank guarantee will be liable for encashment if, there is delay of more than 30 days in payment and/or violation of terms and conditions. For a further delay of another 30 days and/or violation of terms and conditions, it shall be treated as a breach of agreement and possession of all assets of starch factory shall be taken by the Authorised Officer.
The bidder have to pay Rs.50 lacs (Rs. Fifty lacs) as earnest money deposit in the form of demand draft in the name of The Maharashtra State Co-operative Bank Ltd., Head Office, Fort, Mumbai.
The Eligibility Criteria for the bidders are as follows :-
I) The Bidder should have net worth of at least two crores and should have been earning profit during the last three Years.
II) The annual turn over must be above Rs.ten crores.
III) The Bidder must have experience of running a Strach Factory/ Agro Processing Industry for at least 5 years, as if the bidder is a financial institution then it must have adequate experience of lenading to strach/ Agro Processing Industry.
IV) Right to accept or reject the offer is at descrition of Bank's Authorised officer.
The bidder should enclose the following information in Technical Bid
1. Copy of the balance sheet for the year 2007-08
2. Profit during last three years.
1. Year 2004-05 Rs.
2. Year 2005-06 Rs.
3. Year 2006-07 Rs.
3. Annual Turn over per year.
Year Turnover
1. 2004-05 Rs.
2. 2005-06 Rs.
3. 2006-07 Rs.
4. Experience certificate for running strach factory or agro based Industry.
5. Documents supporting sources of finance to run the factory.
FORCE MAJEURE In case of unavoidable circumstances like natural disaster, or obstruction to take in possession the assets of strach factory by the staff members of the factory, share holders farmers or any other institute or persons Authorised officer is responsible to solve the problem and if, the obstructions are not possible to clear within three months, the amount deposited by the bidder shall be returned to him without any interest
The lessee shall shift strach and by-product producted by the lessee during the tenure of the agreement, within two months after expiry of the lease period / lease agreement. After this date, if lesee fails to shift the product so per month and Rs.50/- per 50 kg of strach bag per month Rs.1000 per M.T. of by-product per month and Rs.50/ per M.T. of hask per month till ten Month after end of above grace period of two months after the end of lease period, or before the start of next whichever is earlier If the lessee fail to shift the above products within 12 months after end of lease period, the lessee shall have no right on such products. The lessee shall have to shift these products in any case, before the starting of the next failing which the same will become the absolute property of the lessor free of cost.
The lessee has to enter into an agreement with all above terms and conditions and additional terms & conditions as mutually agreed.
If any dispute arises the judicial jurisdiction will be at Mumbai.
Lessor have right of change, add, alter any of the condition modify of condition mentioned above.
SIGNATURE OF AUTHORISED PERSON

(NAME IN BLOCK LETTERS)

ANNEXURE 'B'

The following information alongwith the concerned document is required to be submitted in Envelope No. 1 alongwith the Tender documents.

1. Name of the person / firm / Co.op. Society
2. Address of registered office.
(In case of firm / society)
3. Registration No. & date of registration
(Attested copy of document of registration to be enclosed)
4. Articles of Association & Memorandum of Association.
5. Details of latest income tax clearance certificate (copy enclosed)
6. Proof of availability of funds
a. Proof of availability biddeer's
Own fund/ seed money
b. Confirmation letter from bank for
Provisional sanction of bank loan
for the balance amount as required.