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HBL/DED/2011-12/020 DEE, Sena Bhawan, NHQ Government of India, Ministry of Defence, South Block, New Delhi 110011 Dear

r Sirs,

23 July 2011

Ref:Contract No. 103/DSR/C/05-06/NVB Sub: NOC for Import of Spare Parts 1. This is to inform you that HBL Power Systems Limited, Hyderbad, India had placed an order for five (5) nos. Image Intensifier Tubes (II Tubes) on OEM, M/s Newcon-Optik, Canada, vide our PO No. 11-16-007 dated 20.01.2011 (Enclosed alongside as Exhibit-1). These items constitute spare parts for the NV Binoculars for which HBL has entered into an AMC contract vide above Contract No. M/s Newcon-Optik shipped the above material to India vide their Invoice No 40497 dated 20.01.2011 (Enclosed alongside as Exhibit-2) and AWB No. 495817291 dated 01.02.2011 (Enclosed alongside as Exhibit-2) Accordingly, HBL filed documents for custom clearance in the O/o the Asst. Commissioner Customs Clearance, Mumbai on. However, on opening the consignment in the presence of the Customs Officers, it was discovered that the items inside were different from those ordered by us. The identification of the goods are not matching with the intended order and found to be for Night vision application which are to be imported with a valid NOC. The OEM was notified of this and he admitted that owing to a mistake in their warehouse, a wrong consignment was sent to India and requested the Asst. Commissioner to allow the freight forwarder (TNT) to take back the consignment and send it back to the OEM. However, the Asst. Commissioner of Customs has ruled that this consignment cannot be allowed to be sent back to Canada. As an alternative, he has condescended to allow HBL to clear the consignment and take possession subject to: a. Getting a No-Objection Certificate (NOC) from an officer of the Ministry of Defence or Naval Headquarters of rank not less than a Deputy Secretary in the GoI

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b. Payment of customs and other charges in accordance with the value of the consignment and as decided by the Asst commissioner of Customs. 6. As can be seen from the list, while the II Tubes can be used straightway by HBL to undertake repairs under the subject AMC contract, the Night Vision Binoculars too can be used for the same purpose after cannibalization. We would like to inform you that the goods that actually arrived from Canada are still usable as spare parts for repair under AMC of defective NVBs under subject contract. We would also like to inform you that HBL is willing to accept this consignment subject to customs clearance by paying all the customs duty and clearance charges assessed and fixed by the Asst. Commissioner of Custom. In light of the above, we request you, sir, to issue the aforesaid NOC in our favour to enable us to get the consignment cleared. This will help us in planning spares parts availability at our end for fulfilling our obligations in subject contract and also avoid a loss should the Asst Commissioner of customs decide to condemn the material. We hereby undertake not re-sell the items or use them in any other way except for the purpose of fulfilling our obligations under the subject contract. We hope you will oblige us by issuing the NOC. A draft NOC is enclosed herewith in Exhbit-6. You may please issue the NOC in this format.

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Thanking you, Yours sincerely,

(P V S Prasad) Dy. General Manager-Defence Electronics Sales

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