Annexure XIV Continued… - Edelweiss

As per the HPGCL Work Order, our Company is responsible for, among other things, taking delivery of raw
coal from MCL for 1.39 MTPA grade ‘F’ coal by using the raw coal linkage on account of HPGCL,
transporting the raw coal to the washery, beneficiation of the raw coal to the washery, transporting the
beneficiated raw coal to the railway siding and loading the beneficiated coal for despatch to RGTPP. HPGCL
has reserved the right to increase or decrease the allocation of coal for beneficiation depending on the
availability of raw coal from MCL. The responsibility of our Company includes getting the right quality of raw
coal from MCL. The coal reject produced from the washery would be the property of our Company. The
HPGCL Work Order lays down the quality of the raw coal and the beneficiated coal and penalty in the event
the beneficiated coal is not of the specified quality.
The term of the HPGCL Work Order is for one year from the date of commencement of supply of beneficiated
coal and can be further extended for a period of one year at the same rates and terms and conditions as the
discretion of HPGCL. HPGCL has reserved the right to terminate the HPGCL Work Order at any time during
the contract period on giving advance notice of one month without accepting any liability for payment or
compensation and without assigning any reason on account of certain reasons such as the beneficiated coal not
being of the agreed specification.
Our Company and HPGCL entered into an agreement dated May 27, 2011 to give effect to the HPGCL Work
Order.
IV.
Ratija washery
1. Work Order dated May 5, 2009 placed by Maharashtra State Power Generation Company Limited
(MAHAGENCO) on Spectrum Coal & Power Limited (‘SCPL) (“MAHAGENCO Work Order”)
and agreement dated May 28, 2009 thereto
MAHAGENCO has awarded the work order for beneficiation of raw coal grade “F” against its linkages from
SECL and its delivery to thermal power stations of MAHAGENCO. The MAHAGENCO Work Order is valid
for a period of one year (plus) 15 days from the from the date of commencement of supply of beneficiated coal
i.e. from the date of the first railway receipt issued for dispatch of beneficiated coal to MAHAGENCO.
Presently the MAHAGENCO Work Order is extended up to July 31, 2011.
The quantity to be beneficiated during the term of the MAHAGENCO Work Order is 0.81 MTPA (plus minus
five per cent). This quantity may vary as per linkages allocated by allocated by the standing linkage
committee. The beneficiation charges payable as per the 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 SCPL shall be disposed off by the SCPL
MAHAGENCO also has the right to terminate the MAHAGENCO Work Order with ten (10) days advance
notice if the performance of the SCPL is unsatisfactory. SCPL and MAHAGENCO entered into an agreement
dated May 28, 2009 to give effect to the MAHAGENCO Work Order.
2. Work Order dated March 8, 2011 placed by Rajasthan Rajya Vidyut Utpadan Nigam Limited (the
‘RVUN’) on Spectrum Coal & Power Limited (‘SCPL’) (“RRVUNL Work Order”)
RVUN has awarded the RRVUNL Work Order dated March 8, 2011 for the work of beneficiation/washing of
1.0 Lac MT per month of raw coal grade “F” against its linkages from Korba field of South Eastern Coalfield
Limited for Chhabra thermal power project.
The scope of the RRVUNL Work Order inter-alia includes the lifting/taking delivery of raw coal from mine on
behalf of RVUN, transportation of the same to washery, transportation of the same to the nearest railway
sliding, loading of the beneficiated coal into wagons for dispatch.
The RRVUNL Work Order is valid for a period of five (5) years from the date of commencement of work,
subject to ascertaining satisfactory performance every year.
The RRVUNL Work Order can be terminated in full or part, at any time, without assigning any reason
whatsoever, on giving notice of three (3) months if the performance of SCPL is not satisfactory or not to the
requirements of the RVUN. SCPL and RVUN are yet to enter into a contract to give effect to RRUVNL Work
Order.
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