Annexure XIV Continued… - Edelweiss

for the rate to be charged for each of these activities and the quality of the beneficiated coal. Penalty may be
imposed on our Company in the event the quality of the beneficiated coal is not in accordance with the quality
specified in the RRUVNL Work Order.
The RRUVNL Work Order was initially for a period of two years from the date of commencement of work
and thereafter could be extended further upto five years at the option and discretion of RRUVNL. The
RRUVNL Work Order has been extended thrice and pursuant to a letter dated March 8, 2011 from RRUVNL,
it was extended to July 20, 2012. The RRUVNL Work Order can be terminated after the first year by giving a
notice of three months in writing by either party, if the situation so warrants.
Our Company and RRVUNL entered into an agreement dated August 14, 2006 to give effect to the RRUVNL
Work Order.
3. Work Order for supply of beneficiated coal to Punjab State Power Corporation Limited (“PSPCL”)
by the Company dated March 8, 2011 (“PSPCL Work Order”)
PSPCL has awarded work order for beneficiation of raw coal grade “F” against its linkages from Korba coal
fields of South Eastern Coalfield Limited (‘SECL’) and its delivery to PSPCL Power Plants. The quantity to be
beneficiated during the term of the PSPCL Work Order is 60,000 tonnes per month which may vary as per
linkages allocated by standing linkage committee. The scope of the PSPCL Work Order inter-alia includes the
taking delivery of raw coal from mine authority on behalf of PSPCL, transportation of the same to washery,
processing/beneficiation, loading of beneficiated coal into wagons for dispatch etc. The PSPCL Work Order is
valid for a period of one year from February 25, 2011 to February 24, 2012. The term of the PSPCL Work
Order can be mutually extended for a period of three years at the same terms and conditions at the discretion of
PSPCL.
The beneficiation charges payable as per the work order are Rs. 152/- per tonne of coal beneficiated. Rates for
beneficiation are firmed and shall be revised for 2nd and 3rd year based on escalation in the wholesale price
index and consumer price index. PSPCL will reimburse the transportation and loading charges as per the rates
mentioned in the PSPCL Work Order. The rejects produced from the washery of the Company shall be
disposed off by the Company. The Company will give credit for coal rejects at the rate Rs. 20 per tonne of raw
coal beneficiated.
In the event, the Company repeatedly defaults in receiving services to the satisfaction of PSPCL, the PSPCL
reserves its rights to terminate the contract after giving one month’s notice to the firm without assigning any
reason. Our Company and PSPCL are yet to enter into a contract to give effect to PSPCL Work Order.
4. Work Order dated May 5, 2009 placed by Maharashtra State Power Generation Company Limited
(MAHAGENCO) on our Company, (“MAHAGENCO Work Order”) and agreement dated May 29,
2010 thereto
MAHAGENCO has awarded the MAHAGENCO Work Order dated May 5, 2009 for the work of beneficiation
of raw coal of ‘F’ grade against its linkages of South Eastern Coalfield Limited and its delivery to Koradi &
Khaperkheda thermal power stations of MAHAGENCO. The MAHAGENCO Work Order is valid for a period
of one year from the date of commencement of supply of beneficiated coal to MAHAGENCO. In terms of the
MAHAGENCO Work Order, it can be further extended for a period of 1 (one) year at the same rate, terms and
conditions at the discretion of MAHAGENCO, if mutually agreed. Presently the MAHAGENCO Work Order
is extended up to July 31, 2011.
The total quantity to be beneficiated during the term of the MAHAGENCO Work Order is 1.00 MTPA (plus
minus 5%) which may vary as per linkages allocated by the standing linkage committee. The beneficiation
charges payable as per the MAHAGENCO Work Order are Rs.115/- (Rs. One hundred fifteen only) per MT of
raw coal. The price is inclusive of all charges including transportation charges, loading charges etc. The rejects
produced by the Company shall be disposed off by the Company.
MAHAGENCO also has the right to terminate the MAHAGENCO Work Order with ten (10) days advance
notice if the performance of the Company is unsatisfactory. Our Company and MAHAGENCO entered into an
agreement dated May 29, 2010 to give effect to the MAHAGENCO Work Order.
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