DRAFT

MBPCL/F&A/2011-12/124 28, 2012 SEW Infrastructure Limited House No. CEN/4, 2nd Floor, IBM Rangpo, Near Christian Church, Rangpo 737 132, East Sikkim. Email: rhep@sewinfrastructure.com Kind Attention: Mr. M.S.Joshi (General Manager) Re:

January

Rongnichu Hydro Electric Project Compensation on account of abandoning Adit 2 work site infrastructures and its demobilization

Ref.: Your Letter No. SEW/RHEP/216/11-12 dated 13.01.2012 Dear Sir, The tunneling work at Adit 2 has been suspended vide Letter No. MBPCL/F60/2011-12/632 dated 25.10.2011, mainly due to inadequate mobilization of manpower, material and machinery due to which the progress was suffering badly. The question of reimbursement of cost incurred towards creation of infrastructure and demobilization at Adit 2 does not arise in view of suspension of works due to inadequacy of manpower, material and machinery at this stage. However, component-wise reply to your claim for compensation are addressed seriatim hereunder LABOUR CHARGES, MATERIAL CHARGES, COST OF CIVIL WORKS ON TEMPORARY QUARTERS FOR INFRASTRUCTURE The creation of infrastructure facilities as per provisions of the contract agreement is the responsibility of the contractor. Apart from that, we would like to draw your attention to SCC clause No. 1(h) of the contract agreement which clarifies the work to be carried out under the contract shall except otherwise provided in the tender conditions include all labour, material, tools, plant, equipments and transport which may be required in preparation of and for the full and entire execution and completion of the works. Nonetheless, you have also claimed labour and material charges for dumping yard and crate wall for protection works which is already included in the item rates of the Bill of Quantity. Apart from that, water pipeline which has been installed was also used for carrying out the main works which is also included in the item rates. In fact, due to considerable delay in the installation of pipeline which is in record, MBPCL

substantially supplemented you with water tankers, tanks, etc. for storing of water for execution of works.

EXTRA EXPENDITURE We do not understand the meaning of extra expenditure incurred in transporting the construction material due to bad conditions of approach road. It was already clarified to you during meeting held on 05.04.2010 that On finalizing the deployment schedule of machinery, the bidder shall ensure that existing state roads, over which MBPCL has no authority poses no hindrances to the proposed trucks to be deployed for carriage of materials etc. In spite of the above, in the interest of the Project, we deployed JCB, TATA 407 at our own cost for smooth supply chain management. The cost of carriage and transportation of the materials is included in the BOQ Rates which has already been paid for. Therefore, the claim on this account where the existing state PWD roads over which MBPCL has no authority is not justifiable. AMOUNT TO BE INCURRED DEMOBILISING THE MATERIAL FOR REMOVAL OF INFRASTRUCTURE &

The Adit-IIa has now been abandoned, since now we expect to get the forest clearance for Adit-IIb. All the infrastructure created for Adit-IIa shall be used for Adit-IIb and hence the question of reimbursement of expenditure to be incurred for removal of infrastructure and demobilizing the material does not arise. Please note that whatever infrastructure has been set-up at Adit-2a has been utilized in getting the main works done for which payment has already been released and the same infrastructure will be utilized for Adit-IIb construction work. In view of the above, your claim for compensation of Rs. 1.14 Crores towards cost of creation of infrastructure at Adit 2a and demobilizing the same is not at all tenable. Thanking you, we remain, Yours truly For Madhya Bharat Power Corporation Limited

Dr. B.M.Goswami
Director cum CEO

Copy to:

Shri G.K.Chhanghani, ED (BD), for information.