Annexure XIV Continued… - Edelweiss

KEY PROVISIONS OF CERTAIN AGREEMENTS
The following is a description of terms and conditions and the general nature of certain material contracts in
relation to our business. This section should be read in conjunction with “Our Business” on page 136.
A. COAL BENEFICIATION BUSINESS
I. Dipka Area (Dipka washery, Gevra washery and Chakabura washery)
1. Work order dated May 10, 2010 to our Company by Gujarat State Electricity Corporation Limited
(“GSECL”) for beneficiation of coal and supply of beneficiated coal to GSECL’s thermal power
stations and agreement dated July 19, 2010 thereto
Pursuant to tender no. GSECL/Fuel/Wash Coal/2009A and letter of intent no. GSECL/Fuel/Wash
Coal/2009/385 issued by GSECL and other correspondences and negotiations with our Company, GSECL
placed a work order dated May 10, 2010 with our Company (“GSECL Work Order”) for beneficiation of
RoM ‘F’ grade coal and supply of beneficiated coal to GSECL’s thermal power stations.
As per the GSECL Work Order, our Company is required to lift RoM ‘F’ grade coal by road-mode from the
collieries of South Eastern Coalfields Limited (“SECL”) in Korba coalfields, beneficiate the coal at the Dipka
washery with its wet beneficiation process and supply the beneficiated coal to the power stations of GSECL at
Ukai, Gandhinagar, Wanakbori and Sikka as per the rail mode in accordance with the specified monthly
delivery schedule. The quantity of beneficiation of coal shall be 7.50 lakh MT per month with effect from
April 1, 2010The quantity of allocated coal by GSECL may vary depending upon the decision of GSECL and
allocation of coal by SECL from time to time. Accordingly, GSECL has reserved the right to vary the quantity
of coal.
Our Company is responsible for making the necessary arrangements for transportation of the coal from the
collieries of SECL to the washeries and the safe transportation of beneficiated coal from the washeries to the
railway siding. Our company is also responsible for getting the right quality of ‘F’ grade RoM coal with proper
top size from SECL and ensuring that the beneficiated coal is transported as per the specified quality
parameters from the washery plant to the railway sliding. The price to be paid for the beneficiating charges,
transportation charges and pay loader charges is Rs. 120.37 per MT.
The GSECL Work Order provides for payment of penalty by our Company in the event the quality of the RoM
and the beneficiated coal is not in accordance with the quality as specified in it. The term of the GSECL Work
Order is for a period of one year from April 1, 2010 and may be extended at the sole discretion of GSECL with
the same rates, terms and conditions for a period of six months or till finalisation of new order by GSECL,
whichever is earlier. The GSECL Work Order was extended for two months by GSECL pursuant to a letter
dated March 24, 2011 and is currently valid through May 2011. The GSECL Work Order may be terminated
by GSECL, without giving any notice period and without any compensation, if our Company fails to start the
execution of the contract by the date committed by it. GSECL also has the right to terminate the GSECL Work
Order by giving one month written notice without assigning any reasons thereof.
Our Company and GSECL entered into an agreement dated July 19, 2010 to give effect to the GSECL Work
Order.
2. Work order dated July 25, 2006 to our Company by Rajasthan Rajya Vidyut Utpadan Nigam Limited
(“RRVUNL”) for beneficiation of coal and supply of beneficiated coal to Kota and Suratgarh
thermal power stations and agreement dated August 14, 2006 thereto
Pursuant to correspondences between our Company and RRVUNL, RRUVNL placed a work order dated July
25, 2006 with our Company (“RRUVNL Work Order”) for beneficiation of coal and supply of beneficiated
coal to Kota and Suratgarh thermal power stations.
The RRUVNL Work Order is for beneficiation of 6.00 lakh MT per month raw coal grade ‘F’ against linkages
granted by the standing linkage committee from Korba Field of SECL. This quantity may vary depending upon
the total allocation of linkages of coal to RRUVNL from time to time. The responsibility of our Company
includes the transportation of raw coal from the collieries to the beneficiation plant by road including
unloading at coal washery, beneficiating the raw coal, transporting the raw coal from the washery to the
nearest railway siding and loading the washed coal into railway wagons. The RRUVNL Work Order provides
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