Annexure XIV Continued… - Edelweiss

3. Agreement dated June 28, 2006 between Reliance Natural Resources Limited (“RNRL”) and
Spectrum Coal & Power Limited (“SCPL”) (“RNRL Agreement”)
SCPL has entered into the RNRL Agreement with RNRL for providing services for washing and delivering
clean coal from SCPL’s private coal washing facility in Bilaspur, Chhattisgarh, India. The RNRL Agreement
shall be extended as per the requirement of RNRL. In terms of the extension order dated April 26, 2009, the
RNRL Agreement was extended till March 31, 2011. Thereafter vide email dated April 8, 2011; the RNRL
Agreement has been further extended as per the existing terms till the finalisation of the revised terms.
RNRL shall deliver or cause to be delivered to SCPL for processing and SCPL undertakes to process 200,000
+ 10% metric tons per month totaling 2.4 million metric tons + 10% per annum of raw coal. Variation of +
10% in the monthly and annual quantities of raw coal will be entirely at the option of RNRL. The coal rejects
shall be the property of RNRL and shall be disposed of as RNRL shall direct. Terms and conditions for the
disposal of the coal rejects shall be decided mutually between RNRL and SCPL.
With effect from April 1, 2006, RNRL shall pay to SCPL charges at the rate of Rs. 87.5/- per metric tonne of
raw coal processed at the coal cleaning plant. Service tax will be payable as applicable. The charges payable
by RNRL shall remain fixed throughout the term of the RNRL Agreement.
The RNRL Agreement can be terminated by RNRL by a written notice to SCPL in case an event of default of
SCPL occurs under the RNRL Agreement. SCPL shall be entitled to terminate the RNRL Agreement by a
written notice to RNRL in the event (i) bankruptcy of insolvency of RNRL, (ii) failure by RNRL to pay any
sum due under the RNRL Agreement, which failure is not cured by RNRL within thirty (30) days after such
payment is due and (iii) any representation made by RNRL under the RNRL Agreement proves to have been
false or misleading and such event has a material and adverse effect on RNRL’s ability to perform its
obligations under the RNRL Agreement.
4. Coal Supply Agreement dated September 24, 2010 between Spectrum Coal and Power Limited
(“SCPL”) and Bharat Aluminium Company Limited (“BALCO”) (“Balco Agreement”)
SCPL has entered into the Balco Agreement for supply of coal having gross calorific value between 2800-2950
kCal/Kg to the BALCO. The Balco 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 20 rakes per month at approximately 3800.00 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. 1456/- (Rupees one
thousand four hundred and fifty six) per MT (inclusive of VAT).
BALCO shall terminate the Balco Agreement without any prior notice and without any compensation to SCPL
in the event where SCPL becomes insolvent or SCPL fails to comply with any of the provisions of the Balco
Agreement.
B. POWER BUSINESS
I. OPERATIONAL POWER PROJECTS
I.I 30 MW power plant at Chakabura, State of Chhattisgarh (Phase I)
1. Power purchase agreement dated July 20, 2005 between PTC India Limited (“PTC”) and
our Company
Our Company entered into a power purchase agreement dated July 20, 2005 with PTC India Limited (the
“PPA”) for sale of 20 MW power generated from its 30 MW power generating facility at Chakabura.
As per the PPA, our Company shall sell and PTC shall purchase energy (which corresponds to 20 MW round
the clock generation). In case of additional availability, our Company shall offer the same to PTC, with first
right of refusal and PTC shall endeavour to market the same at terms to be determined at that particular point
of time. Tariff for the first ten years, from the commercial date of operations (“COD”) of project, would be Rs.
2.22 per KWh, tariff for the period starting from eleventh year shall be as mutually negotiated between our
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