Indian state issues tender to purchase 1200 million worth gold

At a time when gold availability in the country has hit rock bottom, the Social Welfare and Nutritious Meals Programme Directorate under the State of Tamil Nadu in Southern India has issued a tender to purchase 400 kilogram of gold worth ` 1200 million. The gold in the form of coins are intended to be distributed to the eligible poor through the government’s marriage assistance schemes.
The Directorate intends to purchase 100,000 gold coins of 22 carat each weighing four grams through competitive bid open to all manufacturers and dealers. The purity of gold has to be certified by BIS or other international agencies. The cost of gold would include the metal price fixed by the London Bullion Market Association London Gold Fixing AM and at the Reserve Bank of India reference Rate-INR/1 USD as on the day following the date of finalization of tender.
A bidder should have posted an average annual turnover of `.100 crore for the last two successive years. Besides that, a bidder should be in the gold business for at least three years on the date of bidding. The successful bidder should provide a bank guarantee of Rs.50 lakh for every 10,000 coins supplied.
The last date of submission of tender is fixed as Nov. 22, 2013.The Directorate also plans to hold a pre-bid meeting on Oct. 28.
Source:Bullion Bulletin

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