New Delhi: State Trading Corporation has invited bids from various companies to secure insurance cover for about Rs601 crore of imported urea.
The company is planning to take ‘Marine Open Insurance Cover´ for 4.50 lakh tonnes of urea imported from Kuwait, Saudi Arabia, Abu-Dhabi, Dubai and Singapore.
The bids would close on 17 November and the decision on the tender would be taken on the same day, STC said on its website.
According to tender, the imported urea is expected to reach Indian ports by 15 December. The cover would be on port-to-port basis and the total value of import is about Rs601 crore.
Insurance companies which are registered with and licensed by Insurance Regulatory and Development Authority (IRDA) can participate in the bidding process, it said, adding that it would accept only one quote per insurance company.
STC said that the bottom limit would be about Rs55 crore and limit per location would also be the same amount.
It further noted that insurance companies should not charge overage premium for vessels aged up to 25 years and they should also appoint surveyor licensed by IRDA at the discharge port at their own cost.
Urea is being imported to bridge the gap between its demand and indigenous availability in the country.