Mandovi Pellets Ltd.

YEAR                       EVENTS
 1965 - The company was incorporated on 12th April in the name of
        Chowgule Metal Industries, Ltd. and the Certificate of
        Commencement of Business was obtained on 22nd December.
 
      - The main object of the Company is to manufacture pelletisation
 of
        iron ore.
 
 1975 - The Company entered into a technical services agreement with
        Chowgule & Co. Pvt. Ltd. for procuring technical services
 during
        5 years commencing from 1st January.  Under the agreement,
        Chowgule & Co. Pvt. Ltd. was to render in India the entire
        planning and detailed engineering for the project
 supplementing
        the services of Lurgi.  Chowgule & Co. Pvt. Ltd. also agreed
 to
        make available to the Company use of pilot plant facilities
 and
        laboratories and render technical sevices for the setting up
 and
        operation of the plant.
 
      - 7 shares of Rs.100 each subscribed for by the signatories to
 the
        Memorandum of Association.  Equity shares of Rs.100 each
        subdivided into Rs.10 each during 1974-75.  Allotted
 20,49,930
        shares to Chowgule & Co., Pvt. Ltd.,  5,00,000 shares to
 Chowgule
        Steamships, Ltd. and 25,50,000 shares to Steel Authority of
        India, Ltd.
 
 1976 - The Name of the Company was changed from Chowgule Metal 
        Industries, Ltd. and Steel Authority of India, Ltd. (SAIL).
 
      - The Company undertook to set up an iron ore pelletisation
 plant
        at Shiroda in Goa with a capacity of 1.80 million dry metric
        tonnes per annum.  Chowgule & Co. Pvt. Ltd. was installing
 two
        beneficiation plants to beneficiate iron ore at their mines
 at
        Sirigoa and Costi.  Beneficiated concentrates produced by
        Chowgule & Co. Pvt. Ltd. were to be supplied to the Company
 under
        a long term sales contract.
 
      - The concentrates after processing into pellets would be
        transported by river barges to Mormugao harbour and then
 shipped
        to Japan in large ore carriers.
 
      - The Company's plant, which is based on the Lurgi Process is
        designed by Lurgichemi Und Huttentechnik GmbH, West Germany
        (Lurgi).  A major portion of the machinery and equipment
 required
        for the plant was supplied by Vereinigate Osterreichische
        Eisen-Und Stahlweke, Alpine Montan, AG., Austria
 (Voest-Alpine)
        who guaranteed the process and performance thereof backed by
        Lurgi.
 
 1977 - 2,00,000 Pref. and 25,50,000 No. of Equity shares offered at
 par 
        to the public during January 1978.
 
 1978 - The Company entered into an agreement with Chowgule & Co.
 Pvt.
        Ltd. for the supply of iron ore concentrates to the Company.
        Under the agreement during the period of 10.5 years (11
        contracting years) commencing from 15th March, Chowgule & Co.
        Pvt. Ltd. was to supply to the Company about 20,000,000 dry
        metric tonnes of concentrates of the guaranteed chemical and
        physical specifications produced at their beneficiation plants
 at
        Sirigoa and Costi.
 
      - The entire production of iron ore concentrates from the two
        beneficiation plants being set up by Chowgule & Co. Pvt. Ltd.
 was
        earmarked for supply to the Company.  Supplies to any other
 party
        is subject to the prior approval of the Central Government.
 
      - Lurgi designed the plant and the process and performance
        guarantees are backed by them.  Lurgi extended to the Company
        process engineering services for the plant, and advice and
        technical assistance for Indian detailed engineering for
        procurement of Indian supplies and services.
 
      - The Company concluded an agreement with Nippon Kokan
 Kabushiki
        Kaisha, acting as co-ordinator on behalf of six Japanese
 steel
        mills including itself, for the sale of 18.72 million dry
 metric
        tonnes of iron ore pellets to be supplied by the Company for
 11
        years, commencing from 1st April.  The pellets to be supplied
        should conform to guaranteed chemical and physical    
        specifications.
 
 1984 - The Company arranged for export of iron ore fines and lumps. 
 The
        pelletization plant remained closed.  It remained closed
 during
        1986-87.
 
 1985 - The three year arrangement for shut-down of the pelletization
 
        plant and export of iron ore to Japan with premium ended on
 31st
        March.  For the remaining period of contract with the
 Japanese
        steel mills for supply of pellets, which is valid until 1988,
        reopening of the pellet plant was considered impossible as
        production and shipment costs exceeded the f.o.b. prices of
        pellets.  It was, therefore, decided to finalise a settlement
 of  
        the contract with the Japanese steel mills in the most
 possible
        favourable terms to the Company.  Accordingly the Company
 signed
        a final settlement of the contract with the Japanese Steel
 mills.
 
      - The Company commissioned the services of MECON and SAIL R & D
        Centre to study the feasibility of relocating the pellet plant
 in
        the Eastern Sector of the country and using the pellets in
 some
        integrated steel plants.
 
 1987 - The obligation to export ore to Japanese steel mills was
        discharged by February and this contract came to an end.  The
        pelletisation plant continued to remain closed, while the
 efforts
        to relocate the plant in the Eastern Sector failed so far.
        Keeping in view the growing demand for pellets in the
        international market, the Company was planning to re-register
 the
        plant as a 100% export oriented unit.
 
      - There was scope for about 20% pellet usage in the blast
 furnaces
        with sizeable gain in productivity accompanied by reduction
 in
        coke consumption.  Steps were being taken to negotiate with
 Steel
        Authority of India for finalising the proposal of relocating
 the
        pellet plant and supply of pellets to the integrated steel
        plants.
 
 1988 - The Central Government issued a Letter of Intent in February
        allowing the company to reopen its iron ore pelletization
 plant
        as 100% export oriented unit.
 
 1989 - The Company made efforts to reopen the plant, Power
 generating
        sets were being imported free of duty.  A collaboration
 agreement
        was signed with M/s. Hoogovens of Holland to optimise the
        operations of the plant after commencement.  The financial
        assistance package was approved by financial
 institutions/banks.
 
 1991 - The Company restarted its Iron Ore Pelletization plant.
 
      - The Company to issue a fresh 14% Redeemable Cumulative
 Preference
        shares for redeeming the 11% Cummulative Preference shares
 issued
        during the year 1978 and for issue of zero rate secured
        convertible debenture were not consented to by the Controller
 of
        Capital Issues and Department of Company Affairs.
 
      - The Company was in the process of issuing 2,00,000-14%
 Redeemable 
        Cumulative Preference shares which are to be redeemed by
 April
        1993.
 
 1993 - 69,00,000 No. of Equity sahres of Rs.10 each allotted to
        Promoters on private placement basis are as follows:
 19,10,000
        shares to Chowgule & Co., Ltd., 15,40,000 shares to NRIs and
        34,50,000 shares to National Mineral Development Corporation,
        Ltd.