Annexure XIV Continued… - Edelweiss

5. Coal Supply Agreement dated September 24, 2010 (the “Agreement”) between the Company and
Bharat Aluminium Company Limited (“BALCO”)
The Company has entered into an agreement with BALCO for supply of coal having gross calorific value
between 2800-2950 kCal/Kg to BALCO. The Agreement is valid for a period of one year from July 1, 2010 to
June 30, 2011.
The scope of supply shall be a minimum of 35 rakes per month at approximately 3,800.00 MT per rake to
BALCO’s 270 MW captive power plant located at Jamnipalli, Korba (C.G.) and 540 MW captive power plant
located in BALCO Town Ship, Korba (C.G.) by rail. The basic price of coal shall be Rs. 1,456/- (Rupees one
thousand four hundred and fifty six) per MT (inclusive of VAT).
BALCO may terminate the Agreement without any prior notice and without any compensation to the
Company in the event where the Company becomes insolvent or the Company fails to comply with any of the
provisions of the Agreement.
II.
Pandarpauni and Wani washery
1. Work order dated March 21, 2009 to our Company by Maharashtra State Power Generation
Company Limited (“MAHAGENCO”) for supply of beneficiated coal to all thermal power stations of
MAHAGENCO and agreement dated May 4, 2009 thereto
Pursuant to tender no. MAHAGENCO/GM(TI&C)/WASH COAL/2008 and letter of intent no. GM(TI&C)/
2008/T-08/432 issued by MAHAGENCO and other correspondences and negotiations with our Company,
MSPGCL placed a work order dated March 21, 2009 with our Company (“MAHAGENCO Work Order”)
for beneficiation of coal and supply of beneficiated coal to MAHAGENCO’s thermal power stations.
As per the MAHAGENCO Work Order, our Company is required to, among other things, take delivery of raw
coal from the mine authority on behalf of MAHAGENCO, transport it to the washery, beneficiate the raw coal,
transport the beneficiated coal railway siding and load the beneficiated coal into wagons for despatch to the
designated thermal power stations. The quantity of raw coal to be beneficiated is 3.10 (plus minus 5%) MMT.
However it may vary as per the coal linkages allocated to MAHAGENCO. The rate for beneficiation of raw
coal is Rs. 86 of raw coal per MT of raw coal (exclusive of service tax). The MAHAGENCO Work Order
specifies the quality of the beneficiated coal and imposes penalty under circumstances including the
beneficiated coal not being of the specified quality. The coal reject produced from the washery would be the
property of our Company.
The term of the MAHAGENCO Work Order is for a period of two years from the date of commencement of
supply of beneficiated coal and can be extended for a period of two years at the same terms and conditions at
the discretion of MAHAGENCO. MAHAGENCO has reserved the right to terminate the MAHAGENCO
Work Order with ten days advance notice if the performance of our Company is not satisfactory. The
MAHAGENCO Work Order was extended for six months by MSPGCL pursuant to a letter dated February 2,
2011 and is currently valid through July 2011. As per this extension letter, the total order quantity stands at
3.875 MMT of raw coal.
Our Company and MAHAGENCO entered into an agreement dated May 14, 2009 to give effect to the
MAHAGENCO Work Order.
III.
Himgir washery
1. Work order dated March 3, 2011 to our Company by Haryana Power Generation Corporation
Limited (“HPGCL”) for beneficiating raw coal from Mahanadi Coalfields Limited (“MCL”) and
supply of the beneficiated coal to Rajiv Gandhi Thermal Power Plant at Hisar, State of Haryana and
agreement dated May 27, 2011 thereto
Pursuant to letter of intent by letter no. 540/CE/RGTPP/Washed Coal/GM-10/Vol-1and other correspondences
with our Company, HPGCL placed a work order dated March 3, 2011 with our Company (“HPGCL Work
Order”) for beneficiating raw coal from MCL and supply of the beneficiated coal to Rajiv Gandhi Thermal
Power Plant (“RGTPP”) at Hisar, State of Haryana.
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