« Two ( 02 ) A310-300 Aircrafts (Freighter) in "fly away" and in "as is where is" condition.

« Two ( 02 ) spare CF6-80C2 Engines in "serviceable"/ "as is where is" condition.

« One ( 01 ) APU GTCP331-250H in "serviceable" / "as is where is" condition.

Please note, online bidding will be done in USD only for foreign as well as Indian bidders. If successful, the Indian bidders can remit the sale proceed in INR. Please note the exchange rate / conversion factor for the comparative purpose will be as per the prevailing IATA exchange rates on date of e-auction which will de declared prior to commencement of the e-auction.

The Aircraft / Engine / APU will be available for inspection at NACIL, Mumbai (please refer Clause no. 6)

All the lots, irrespective of Highest bid & Reserve price determined by NACIL, will be on STA (SUBJECT TO APPROVAL), as per the tender terms, sale of items mentioned in the tender is subject to approval by the Government of India and the Board of NACIL.

NACIL reserves the right to withdraw the aircraft, engines and APU s from sale without assigning any reason whatsoever.  Should such a withdrawal occur after submission of bid, the EMD would be returned to the bidders.

IMPORTANT TERMS:

1.1. A Pre Bid EARNEST MONEY DEPOSIT (EMD) is to be submitted on or before 14.01.2010/ 16.00 hrs IST in accordance with the Table below in order to qualify for participation in E-Auction

LOT.	PARTICULARS	EMD IN INR FOR INDIAN BIDDERS	EMD IN USD FOR FOREIGN BIDDERS
A1	Aircraft A310-300 (Freighter) VT-EQS	22,50,000 .00	50,000.00
A2	Aircraft A310-300 (Freighter) VT-EQT	22,50,000.00	50,000.00
B1	Engine Serial # 695102	4,50,000.00	10,000.00
B2	Engine Serial # 690140	4,50,000.00	10,000.00
C	APU Serial # P-1176	45,000.00	1,000.00

1.2. The Pre Bid EMD may be paid by Foreign Bidders in the form of wire transfer directly to MSTC / by Indian Bidders in the form of DD/ PO/ Bankerˇ¦s Cheque(please refer annexure: Bank / Contact details )

1.3. Bidder/s who do not submit the pre-bid EMD and the Registration Fee would not be eligible to participate in E-Auction

1.4. Post Bid EMD: The bidder/s, who qualify as the highest bidder(s) in the e-auction, whether on confirmed or STA basis would be required to submit a post-bid EMD equal to 10% of the bid offer to MSTC within 10 days of acceptance of the offer by NACIL

1.5. EAuction Result/Status: The status of the highest bids having been accepted on Confirmed or STA basis must be personally seen by the Bidders online through the link ˇ§Auction Lot Statusˇ¨ immediately after closing of eAuction and payment of Post-Bid EMD/SD must be made accordingly.

1.6. Email Address of Bidders: This must always be kept valid, failing which Bidders will be liable for non-compliance of payment or any other instruction issued by MSTC to them by email.

2.0) CONTACT PERSON OF SELLER / STOCK-HOLDER: Mr. P S Negi (GM-MM), Representative of M/s NACIL having address at NACIL, Mumbai, INDIA (Telephone: 022-26265542 Fax: 022-26157033, eMail: PS.Negi@airindia.in) who are the Owner / Seller / Stockholder of Goods, hereinafter referred to as PRINCIPAL. MSTC Ltd. (the Selling Agent of the PRINCIPAL) will be hereinafter referred to as MSTC. (Contact Person of MSTC: Mr. Saikat Paul, Ph.: 22886261 Extn. 29/ email: saikat@mstcindia.co.in)

3.0) CAUTION : 3.1) The Bidder shall be solely responsible for all consequences arising out of the bid submitted by him (including any wrongful bidding by him) and no complaint / representation will be entertained by MSTC/Principal in this regard. Hence Bidders must be careful to check (the Bid Amount/No. Of 0/ No. Of Digits/ Unit of Measurement etc.) And rectify their bid (if required) before submitting their Bid into the live eAuction floor by clicking the 'Bidˇ¦ Button. In case of any bid being equal to or more than 5 (five) times the current Highest Bid for a particular Lot, this will be displayed by way of a WARNING on the Bidder's screen before he confirms/submits the bid. There is no provision for putting Bids in decimals.

3.2) The Sale will be governed by the Material List & Special Terms & Conditions (STC) displayed on the "Live" eAuction Floor (and not under Forthcoming Auctions) as well as the General Terms & Conditions (GTC) and Buyer Specific Terms & Conditions (BSTC) already accepted by the Bidder at the time of eAuction Registration with MSTC. The Material List & STC displayed under View Forthcoming Auctions on MSTC's eAuction Website are tentative and subject to change at MSTC's sole discretion before the start of eAuction. Bidders should therefore download the Material List and STC displayed only under View Live Auctions for their record purpose if required. The BSTC and GTC can be seen and downloaded by going to the Home Page of the eAuction Website and clicking on NEW USER. Participation in the eAuction will be deemed to imply that the Bidder has made himself thoroughly aware of and accepted the STC, BSTC and GTC. In case of any conflict between the STC and BSTC, the STC shall prevail. MSTC shall have the right to issue addendum to the STC or BSTC to clarify, amend, modify, supplement or delete any of the conditions, clauses or items stated therein and the Addendum so issued shall form a part of the original STC.

3.3)UNIT/UNIT OF MEASUREMENT (UOM) FOR BIDDING, SALE & DELIVERY: Each Lot will have to be bid, sold and delivered on the basis of the Unit / Unit Of Measurement ( i.e. UOM ) stipulated in the Material List displayed on the Auction Floor of View Live Auctions against the respective Lot. Any representation / complaint from the Bidders for the Bid to be made / having been made on the basis of any other Unit/Unit of Measurement will not be entertained.

3.4)During Live Auction, only brief Lot / Item details will be shown under Lot Name n the Auction Floor where Bidders are required to bid. The complete Item Details can be seen by the Bidders by clicking on the respective Item hyperlinked under Lot Name and it shall be the responsibility of the Bidders to see the Item Details before bidding and no representation / complaint in this regard will be entertained by MSTC / Principal from the Bidders.

3.5)MSTC/PRINCIPAL reserves the right to forfeit any amount / money lying with MSTC / Principal from the successful Bidder who defaults in making the due payments against the eAuction even though such amount / money may be lying with MSTC / Principal on account of the said Bidder against any other contract / transaction.

4.0) INSPECTION OF MATERIALS: The registered Parties (or their Authorised Representative) should inspect the materials as per schedule [PLEASE REFER Annexure - Inspection & Technical Queries]

5.0) VALIDITY OF BIDS: All Bids will be valid for acceptance by MSTC for a period of 120 (One hundred & twenty days) days from the date of closing of e-Auction, excluding the date of closing. In case the 120th day falls on a holiday or remains closed for MSTC, such Bids will be deemed to be automatically extended to be valid up to the next working day of MSTC.

6.0) SALE RESULT/ INTIMATION: 6.1) All sales will be subject to Reserve Price (RP) fixed by the PRINCIPAL. After closing of eAuction, in case the Highest Bid is equal to or more than the RP, the respective Lot will be deemed to be Sold on CONFIRMED basis, whereas if the Highest Bid is less than the RP but equal to or more than the lower limit of the RP, then such Highest Bid will be deemed to be Provisionally Sold on SUBJECT TO APPROVAL (STA) basis for which final approval or otherwise will be intimated after receipt of the prescribed Post-Bid EMD/SD from such Bidder within the due time.

6.2) It will be the Bidder's responsibility to personally see the result of eAuction by seeing and downloading the Auction Lot Status from the Website immediately after Closing of eAuction which will be displayed upto 7 (Seven) days from the date of Closing of eAuction (excluding the date of closing of eAuction). The Auction Lot Status will show whether any Lot has been won by the Bidder on Confirmed or STA Basis. The successful Highest Bidder for Confirmed as well as STA Lots shall have to pay the prescribed EMD/Security Deposit within the prescribed time counted from the date of Closing of eAuction (excluding the date of closing). Although immediately after closing of eAuction, a system generated automatic Sale Intimation Letter will be issued by e-mail to the Highest Bidder advising him to deposit the prescribed Post-Bid EMD/SD within the stipulated time, it must be noted by the Bidders that such Sale Intimation Letter will be issued by MSTC only for the purpose of record and payment of Post-Bid EMD/SD will have to be made within the stipulated time counted from the date of Closing of eAuction irrespective of the date of issue of the Sale Intimation Letter by email. Bidders must, therefore keep a watch on their incoming e-mail. Normally no hard copy of the Sale Intimation Letter (on Confirmed or STA basis) will be issued by MSTC.

7.0) POST-BID EMD/SECURITY DEPOSIT (SD): 7.1) The successful Bidder shall have to deposit Post-Bid EMD/SD within stipulated time as per Clause 1.4 above counted from the date of Closing of eAuction (excluding the date of closing and irrespective of the date of issue of Sale Intimation Letter)

7.2) If the successful highest Bidder (on Confirmed or STA) fails to pay the Post-Bid EMD/SD in time, then his Password will be deactivated and shall normally be DEBARRED for a minimum period of 6 (six) months from participating in all eAuctions and disposal sales by MSTC on behalf of this PRINCIPAL and, his Registration Fee will be forfeited. While considering his request for reactivation which will be at the sole discretion of MSTC, all facts including the number of PRINCIPALS / eAuctions / Lots for which he had failed which are germane will be taken into account. The unsold Lot may be put up for re-e-Auction.

7.4) Delayed payment of Post-Bid EMD/SD may be accepted depending on the circumstances of the case or urgency of disposal in consultation with the Principal with such penalty as may be deemed fit by MSTC. This shall however not confer any right to the Bidder to make any Late Payment of Post-Bid EMD/SD.

7.5) In case the successful Bidder pays the EMD/SD, but fails to pay the balance material value along with applicable Duties and Taxes within the due date, then his EMD/SD will be forfeited.

8.0) PAYMENT OF BALANCE SALE VALUE & DUTIES & TAXES: 8.1) On receipt of Post-Bid EMD/SD from the successful Bidder, Sale Order / Acceptance Letter will be issued by MSTC to him advising him to deposit the balance material value along with all applicable Duties & Taxes. The entire balance Sale Value will have to be paid by the Buyer in one lump-sum and no installment payment will be allowed, unless otherwise stipulated in the Lot / Item Details.

8.3) The mode of payment will be as stipulated in the Sale Order / Acceptance Letter and the payment will have to be submitted by the Buyer to NACIL

8.5) Normally all sale will be treated as Local Sale & the Buyer shall have to pay VAT/Sales Tax as per the Local Sales Tax Act/Rules/Tariff of the concerned State where the materials are lying & sale against C Form/CST will not be allowed. However in those cases where the PRINCIPAL (Other than Defence Depots/Units) is registered with the Sales Tax Authorities as a Dealer and subject to the permission of such PRINCIPAL, Buyer s request for sale against C Form/CST may be considered at the sole discretion of the PRINCIPAL and in the event of the PRINCIPAL not agreeing to the same, Buyer will have to pay the Local Sales Tax/VAT as per the applicable rate and no representation in this regard will be entertained by MSTC/PRINCIPAL.

9.0) DEFAULT IN PAYMENT: In case of default in payment of the balance Sale Value within the prescribed time limits, the due payment may be made together with additional charges @ 1% per week or part thereof calculated on the Full 100% Sale Value for a minimum period of one week or multiple thereof. Fraction of one week will be treated as one week for the purpose of calculating late payment charges. The Post-Bid EMD/SD will be adjusted towards material value only on receipt of the balance Sale Value within the prescribed time. However, this shall not confer any right to the Bidder to make any Late Payment of Balance Sale Value or applicable Duties and Taxes and MSTC reserves the right not to accept the payment of the Balance Sale Value with or without the additional charges after the expiry of the free payment time.

10.0) DELIVERY:

10.1) Delivery will be as per NACIL terms & conditions

10.2) Every Bidder registered with MSTC for eAuction participation has been issued a Photo ID Card duly authorized by MSTC and containing the specimen signature of the Authorised Representative of the Bidder s Firm. For the purpose of taking delivery from the PRINCIPALˇ¦s Location/Depot/Plant, the Authorised Representative of the Buyer i.e. the authorized Photo ID Card Holder should report to the PRINCIPAL along with his original Photo ID Card or the said Photo ID Card Holder may depute any other Representative along with Authority Letter on Buyer s Letter-Head after duly attesting the signature of his Representative along with a Self Certified/Notarised Photocopy of his Photo ID Card. The successful Bidder/Buyer shall co-ordinate the date and time with the PRINCIPAL in advance and take prior appointment before making arrangements for transportation to ensure speedy removal of materials.

10.3) The materials sold shall be removed by the Buyers from any one side of the Lot as per the sole direction of the PRINCIPAL and no segregation of items from the sold Lots will be permitted.

10.4) In case any hot-work permission is required for dismantling operations, the same will have to be obtained by the Buyers from the PRINCIPAL's authorized representative before lifting and it will be sole discretion of the PRINCIPAL to allow or not to allow such hot-work permission at Buyers cost only to the extent of facilitating the loading and transportation of the goods.

10.5) For the purpose of removing the materials, the successful Bidder shall employ or engage only his / their own personnel and shall keep the Principal fully indemnified against any claims whatsoever including claim for wage, injuries, compensation, death etc.

10.6) While removing materials, if any accident or damage to the property/life etc. arises by reason of any act of negligence /omission /default or non-compliance with any of the Terms & Conditions of statutory regulations or rules and regulations applicable within Principal's premises, on the part of the Bidder's / his representative or employees resulting in death or injury to any persons or damages to the property of Principal or any third Party then in such an event the Bidder will have to pay compensation to any such person including the employees of Principal for such injury / for damage to person's property of such persons. The Bidder shall in such and event keep the Principal indemnified from any demand, claims or proceedings made.

11.0) DEFAULT IN LIFTING:

11.1) In case of any Default in lifting of materials by the Buyer within the prescribed free time limit, the outstanding material may be lifted within 14 (Fourteen) Days from the due date subject to payment of Ground Rent by the Buyer directly to the PRINCIPAL for the period of delay. the Ground Rent will be payable @ 1% per week or part thereof. All matters relating to charging of Ground Rate will be decided by the PRINCIPAL.

11.2) In case of Goods sold on Lot Basis, the Ground Rent will be calculated on the value of the entire Lot even if lifted in part, where as in case of Goods sold on Unit Weight or Unit Number Basis, the Ground Rent will be calculated on the value of unlifted quantity.

11.3) However it must be noted by the Bidders that it will be the sole discretion of the PRINCIPAL not to allow the Buyer to lift the Goods with or without the Ground Rent after the expiry of the stipulated free Delivery period or even within the aforesaid additional period of 14 (Fourteen) Days and in such event, the sale of the material not lifted by the Buyer(s) will be automatically cancelled and all the moneys paid by the Bidder /Buyer will be automatically forfeited.

12.0) STATUTORY PAYMENTS: The rate of Excise Duty, Sales Tax/VAT Income Tax, Education Cess or any other statutory Duty / Tax / Levy / Charge etc. will be applicable and payable by the Buyer as prevailing on the date of actual physical delivery of materials. The rates of Duties and Taxes displayed on the e-Auction Website are only indicative and based on the rates prevailing before the commencement of the e-Auction. Successful Bidders shall have to pay Income Tax by way of TCS @1.0% on all Scrap items purchased for trading as per Section 206 C of IT Act 1961. The TCS will be calculated on the gross Sale Value i.e. Materiel Value plus Excise Duty (if any) & Sales Tax/VAT. Parties eligible for Tax Exemption or Lower Rate of Tax should produce prescribed Certificate from Income Tax Assessing Officer at the time of payment. (Notarised Photocopy to be given along with Original, the latter will be returned after verification). Manufacturers, who are exempted from paying Income Tax, must submitted Certificate to the PRINCIPAL/MSTC as per the format prescribed U/S 206 - (C) of Income Tax Act 1961 at the time of paying the Balance Sale value. All successful Bidders must submit their Income Tax PAN No. at the time of making the payment of balance sale value.

13.0) PERIOD OF CONTRACT: Up to the validity period of the Delivery Order / Release Order issued by MSTC / PRINCIPAL or unto the extended period of validity of the Delivery Order / Release Order in case the Delivery period is extended by the PRINCIPAL at his sole discretion as the case may be.

14.0) The Bidder(s) shall have no right to issue any addendum to these Special Terms and Conditions or Buyer Specific Terms and Conditions to clarify, amend, supplement or delete any of the conditions, clauses or items stated therein.