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KARNATAKA
NEERAVARI NIGAM LIMITED
(A Government of Karnataka Undertaking)
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Regd. Office
: 4th Floor, Coffee Board Building,
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No. 1, Dr.
B.r. Ambedkar Veedhi, Bangalore - 560 001
.Ph : 080- 2283074 - 78 Fax : 080 - 2267314
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CONTENTS
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The KARNATAKA NEERAVARI NIGAM LIMITED (KNNL)
proposes
to mobilise Rs. 350.00 crores by way of private placement of
bonds/debentures, secured or unsecured, during the financial
year 2001–02 in various tranche. The bonds/debentures will
be guaranteed by the Government of Karnataka for payment of
interest and repayment of principal amount on due dates. In
this regard, the KNNL desires to engage the services of
experienced category - I merchant bankers to act as
arrangers for the bond issues during the financial year
2001-02.
2.
The full background and detailed
instructions/procedures is mentioned in the application
form. The blank application forms can be obtained from the
registered office, on a written request, accompanied by a
copy of category - I merchant banking license and a
non-refundable amount of Rs. 500.00 from 1.8.2001 to
7.8.2001 during office hours.
The amount shall be payable through DD/Pay Order
drawn in favour of “Karnataka Neeravari Nigam Ltd”
payable at Bangalore. The blank application forms shall not
be sent by post.
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ABOUT
KNNL AND ITS BORROWING PROGRAMME
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ABOUT
KNNL
The State Government has been
engaged in executing
the Major and Medium Irrigation projects of Krishna basin
through the irrigation department for several decades. A
host of problems such as inadequacy of funds, delays in
technical and administrative approvals
and clearances ,
problems of land acquisitions etc
has resulted in slow pace of
implementation of the projects. Primarily with a view to
expedite the ongoing irrigation projects in Krishna valley,
the KNNL was incorporated in December
'98 under the Companies Act as a wholly
owned company of Government of
Karnataka with an authorized share capital of
Rs. 3000 crores. Since inception 12 projects have been transferred to KNNL.
The estimated balance cost of these projects as on
1.4.2001 is Rs. 3428 crores and balance potential to be
created is 4.6 lakh.
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The
objectives of KNNL are:
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To
ensure accelerated and timely completion of the
projects.
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To
bring about better efficiency in construction and
administration of
the projects through speedy decision making and
better management
practices.
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To
access funds from the market through issue of bonds
based on a time bound investment plan.
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The projects transferred to the KNNL are as
follows:
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1)
GHATAPRABHA
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2)
UPPER TUNGA PROJECT
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3)
HARINALA
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4)
MALAPRABHA
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5)
GANDORINALA
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6)
SINGATALUR
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7)
HIPPARGI
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8)
MARKANDEYA
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9)
BHIMA LIFT
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10)
TUNGA LIFT
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11)
KALASA NALA
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12)
BANDURA NALA
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KNNL’s
BOND ISSUES DURING 2001-02.
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The
KNNL has so far borrowed
Rs. 660.97 crores through
private
placement of bonds in three series.
The programme of works proposed for the financial
year 2001 - 02 is Rs. 500 crores. To
part finance these
projects, it is proposed to borrow Rs. 350 crores during the
year.
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NATURE
OF BONDS
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The
bonds are secured,
redeemable,
non - convertible and are in the nature of Debentures. The
Government of Karnataka will unconditionally
and irrevocably
guarantee the bonds.
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RATING
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The
issue has been rated as “LA+
(SO)” by ICRA indicating Adequate
Safety with regard to timely payment of interest and
principal.
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STRUCTURED
PAYMENT MECHANISM
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A
Tripartite Agreement will be entered into amongst Government
of Karnataka, the KNNL and the Trustees
to the bondholders under the terms
of which, Government of Karnataka
will assure budgetary support for servicing the bonds.
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SCOPE
OF WORK OF MERCHANT BANKERS
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The
scope of work comprises the following
either jointly with
other merchant bankers/arrangers or solely.
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Pre
issue:
i.
To advise and assist the KNNL in preparation of
information
memorandum.
ii.
To advise the KNNL on the following:
a.
Size of the bond issue.
b.
Size of the green shoe option.
c.
Structuring the bond issues.
d.
Coupon.
e.
Tenure.
f.
Put/call options.
g.
Redemptions.
h.
Periodicity of interest payments.
iii.
Timing of the bond issues, viz., date of issue
opening, date of closure of
issue and date of allotment depending
upon the prevailing market
conditions.
Post
issue:
i.
To identify the investors, make
presentation to them on behalf of the
Nigam, interact with them, supply them
with issue stationery, reply
queries, furnish information
authorised by the Nigam, make arrangement
for meeting the
investors.
ii.
Collect the applications from
the investors with
necessary documents
bank the cheques under intimation to the
KNNL/Registrars to the issue.
iii.
Liaise with the Registrars to the issue to report
collection figures, keep a
tab on the collection.
iv.
Suggest mid course corrective action/draw up
strategies in consultation
with the KNNL to make the issue a
success.
v.
Finalisation of subscription list with full
documents.
vi.
Finalisation of allotment in consultation with
registrars to the issue and
the KNNL.
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i. The
application shall be submitted in the prescribed format as
at Annexure
and the same shall be put into the box kept for
this purpose at the registered
office.
ii. The
documents such as information memorandum,
certificates for the amount
mobilised etc evidencing
the participation in the private placements and the
mobilisation of the amounts
mentioned in the application shall
have to be
enclosed to the application.
iii.The merchant banker shall submit the application in
sealed cover accompanied
by a non-interest bearing EMD of Rs.
1,00,000 (Rupees one lakh only) by way
of DD/Pay order drawn
in favour of “Karnataka Neeravari Nigam Ltd”
payable
at Bangalore. The EMD will be refunded to the
merchant bankers who do not
qualify as per the
pre-qualification criteria prescribed. The EMD of the
selected
merchant bankers will remain with the KNNL till the
closure of the bond issue.
The EMD is liable
to be forfeited in the event of their failure to mobilise the
stipulated
amount in time.
iv.Once the application is submitted
to the KNNL neither further /
additional
information and correspondence
will be
entertained nor KNNL is bound to call
for any clarification.
v.The KNNL reserves the right to
accept or reject any
application without any
assigning any reason therefore.
vi.The KNNL will negotiate other terms and conditions of
the bond issue with the
selected merchant bankers and decide
upon the following:
a.
Coupon
b.
Structure of bond issue
c. Timing of bond issues.
d.
Fees
e.
All other terms and conditions.
vii.Conditional bids are liable to be rejected.
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PRE-QUALIFICATION
CRITERIA
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The
following the criteria for pre- qualification:
i.
The merchant bankers should have been ranked amongst
the top ten
arrangers in the overall private placement of
debt.
ii.
The merchant bankers should also have been ranked
amongst the
top ten in the private placement of debt for
state level undertakings.
iii.
For this purpose item no (i) and (ii) above, the
private placement of
debt means all distributed, structured
and on tap issues with tenure
of more than one year and the
issue amount credited on full basis to
the concerned
arrangers.
iv.
For the purpose of
evaluations, the KNNL intends to
consider the
rankings published in the PRIME
Annual Report for the period
April’ 00 to March’ 01.
v.
The performance of the merchant
bankers in the previous bond
issues of KNNL will also be taken into
consideration for the purpose
of evaluation. The KNNL reserves
the right to accept or reject the
applications of those merchant bankers who had not mobilised the
stipulated
amount in the previous bond issue.
The
KNNL reserves the right to remove the name of the merchant
bankers from the select list at any stage, in case it comes
to the notice of KNNL at a later date that any information(s)
furnished by the merchant banker were factually incorrect.
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SCHEDULE
OF EVENTS
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i.
The merchant bankers
may obtain the application forms from 1.8.2001
to 7.8.2001,
during the office hours.
ii.
The application forms along with
the relevant
enclosures shall be put
into the box kept for this purpose,
at the registered office, on or before
1600 hrs on
14th August 2001.
The
documents will be opened at 11.00 hours on 16.8.2001 in the
presence of the merchant bankers who wish to be present for
the same.
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ANNEXURE
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APPLICATION
FOR ENROLMENT OF MERCHANT BANKERS
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a. Name and address of the merchant Banker:
b. SEBI Registration No.:
(Please enclose certified true copy)
c. Name & Telephone/Fax/e-mail of the Contact person(s)
(HQ):
d. Name, address & Telephone/Fax/e-mail of the Contact
person(s) (Bangalore):
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e. Other Particulars:
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Particulars
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2000-01
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2001-02
(Till
June)
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1.
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No
of issues handled
(Excluding
sole mandate, issues handled for state level
undertakings and structured deals)
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2.
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Amount
mobilised in the issue
- Collectively
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- Individually
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3.
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No
of Issues handled as sole arranger
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4.
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Amount
mobilised
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5.
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Amount
mobilised through structured deals
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6.
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No
of Issues handled for state level undertakings
(Including Karnataka state undertakings)
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7.
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Amount
mobilised in the issue
- Collectively
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- Individually
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8.
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No
of issues handled for Karnataka state undertakings
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9.
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Amount
mobilised in the issue
- Collectively
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- Individually
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10.
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Long
term loans arranged from banks, Institutions like LIC,
HUDCO, UTI etc.
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Authorised
Signatory
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KARNATAKA
NEERAVARI NIGAM LIMITED
(A Government of Karnataka Undertaking)
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Regd. Office
: 4th Floor, Coffee Board Building,
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No. 1, Dr.
B.r. Ambedkar Veedhi, Bangalore - 560 001
.Ph : 080- 2283074 - 78 Fax : 080 - 2267314
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| Ref: No KNNL-01-TCL-2K-2274 |
Date: 16.12.2000.
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INVITATION
FOR PRE-QUALIFICATION OF CONTRACTORS FOR LIFT IRRIGATION SCHEMES
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1. The Karnataka
Neeravari Nigam Limited, Bangalore invites
application from
competent contractors to
pre - qualify for local competitive
bidding for
construction of Lift Irrigation Projects costing
Rs. 4 crores to rs. 100 crores on
turn key basis. Pre
-qualification
is opened to individuals/firms from India who
are registered with any
state/Central Government Department such as PWD,
Railways, Water Supply
Boards , etc . All applicants should
have requisite
experience and track record in execution
of any of the following type of works :
a) Water
Supply / lift Irrigation Scheme,
Pumping station on turnkey basis;
b) Pumping
mains and gravity mains for Water Supply / Electric Substation
/ Lift
Irrigation Scheme systems;
c) Pumping
Equipment, Electrical / Mechanical Works , etc., on turnkey
basis;
d) General
Civil Works, such as Jackwell, Pump House and distribution
Chamber
etc.
2. Pre -
qualification document may be obtained
from the Registered Office on
payment of a non-refundable fee of Rs. 5,000/- (Rupees five thousand
only) in
the form of a Demand
Draft drawn on any scheduled bank
in favour of
Managing Director, Karnataka
Neeravari Nigam Limited, payable
at
Bangalore.
3. The
envelope containing application
requesting documents must
be
superscribed as "Request for Pre-qualification document or Construction
of Lift
Irrigation Projects". The
blank application forms can
be collected from
26.12.2000 to 4.1.2001 between
11.00 AM to 4.00 PM. In case the last date
happens to be holiday, documents
will be issued on the immediate
next
working day. Prescribed application form, duly completed
in all respects should
be submitted from 8.1.2000
to 20.1.2001 between 11.00 AM and 4.00 PM.
Request for extension of time for submission of completed documents
will not
be entertained.
4. The
Pre -qualification
is proposed to be done for two categories and applicants
are invited to submit seperate
application for each category.
pre-qualification
will be done, depending upon standing
of the applicant / firm.
5. On the request
of the applicant, the Pre-qualification document can be
sent by
courier on payment of additional amount of Rs. 750/-
(Rupees seven hundred
fifty only) for dispatches within
India. Insuch case the Karnataka Neeravari
Nigam Limited will not be
responsible for any late delivery
or loss of
the
documents so mailed.
6. Applicants
will be advised, in due course of the result of their application.
Only
firms pre-qualified under this process will be invited
to bid in due course.
7. The Karnataka
Neeravari Nigam Limited reserves the right, without assigning
any reasons for its actions and decisions to:
a) Amend
to scope and value of any
work to be tendered, in which event on lt
those Pre - qualified bidders who meet
the requirements
as ammended will be
eligible to bid.
b) Reject
or
accept of any application or completed Pre-qualification
document at
its discretion and
c) Cancel the
Pre-qualification process and reject all applications.
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