INVITATION FOR APPOINTMENT OF MERCHANT BANKERS FOR MOBILISATION OF RESOURCES

1. The KARNATAKA NEERAVARI NIGAM LIMITED (KNNL) proposes to mobilise Rs. 200 crores during Sep'04/Oct' 04 by way of issuance of bonds/debentures through private placements and/or structured deals and/or by availing team loans from banks/financial institutions. The bonds/debentures and the team loans would be unconditionally and irrevocably guaranteed by the Goverment of Karnataka for payment of intrest and repayment of principal amount. The KNNL desires to engage the services of experienced merchant bankers for the above.

2. The merchant bankers should be a Category - 1 merchant banker with an existence of atleast two years as Category - 1 merchant banker. The merchant bankers should have mobilised Rs.400 crores or more either as sole arranger or collectively with other arrangers in the private placement of debts (excluding the amount mobilised through private placement for state level undertakings) with a tenure of 3 years or more in each of the last 2 financial years.i.e. 2002-03 and 2003-04. The merchant banker shoukd have modilised Rs. 200 crores or more either as sole arranger or collectively woth other arrangers in the private placement of debts of state level undertakings with a tenure of 3 years or more in each of the last 2 financial years.i.e. 2002-03 and 2003-04. The merchant bankers should also have arranged/obtained sanctions of Rs. 200 crores or more from banks/financial institutions as term loan in each of the last 2 financial years.i.e. 2002-03 and 2003-04. The full background and detailed instructions/procedures are mentioned in the application form.

3. The bank application forms can be obtained from the registered office, on a written request, accompained by a non-refundable amount of Rs. 1000 (Rs. one thousand only) from 23.8.04 to 30.8.04. Please note that the amount shall be payable through Demand Draft/bankers' Cheque drawn in favour of "Karnataka Neeravari Nigam Limited" payable at Bangalore. The blank application forms shall not be sent by post.

4.The bids will be in two-cover system. The Cover-1 contains pre-qualification bid Cover-2, the financial bid. These have to be submitted seperately in different sealed covers,super scribing "Pre-qualification Bids/Financial Bids for appointment of Merchant Bankers for mobilisation of resources". Bids with incomplete or incorrect information are liable for disqualification and no further correspondence whatsoever would be entertained. The KNNL reserves the right to accept or any or all the bids at its sole discretion.

4. SCHEDULE OF EVENTS:

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COMPANY SECRETARY