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Resolved further that the Company do secure the term loan of Rs.100

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Resolved further that the Company do secure the term loan of Rs.100 Powered By Docstoc
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            Regd Office: 4th Floor, Coffee Board Building, No.1, Dr. Ambedkar Veedhi,
                                     Bangalore – 560001.
             MINUTES OF THE 25 th MEETING OF BOARD OF DIRECTORS
        Day & Date        :   Tuesday, the 7th June 2005.
        Time              :   5.00 p.m.
        Place             :   “KRISHNA” Home Office of
                              the Hon’ble Chief Minister,
                              Kumara Krupa Road,
                              BANGALORE-560 001.

PRESENT:

   1. Sri   N. Dharam Singh                    CHAIRMAN
   2. Sri   Mallikarjuna Kharge                VICE CHAIRMAN
   3. Sri   K.K. Misra                         DIRECTOR
   4. Sri   Abhay Prakash                      DIRECTOR
   5. Sri   S.V.Ranganath                      DIRECTOR
   6. Sri   A.K.M.Nayak                        DIRECTOR
   7. Sri   A.P.Joshi                          DIRECTOR
   8. Sri   K.C.Reddy                          DIRECTOR
   9. Sri   P.N.Sreenivasachary                MANAGING DIRECTOR
 10. Sri    H.S.Mahesh                         DIRECTOR


LEAVE OF ABSENCE GRANTED TO

   Sri Sudhakar Rao                                    DIRECTOR

IN ATTENDANCE:

    Sri G.S.Prakash                                    COMPANY SECRETARY &
                                                       GM(FINANCE) I/C

INVITEES:

   Sri Anil Kumar                                      EXECUTIVE ENGINEER
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       The Managing Director welcomed the Chairman, Vice Chairman and the Directors
present in the 25th Board meeting and requested that the subjects placed before the Board
be taken up for discussion.

       At the outset the Managing Director informed the Board of the demise of Sri
R.A.Audi, a Director on the Board and member of the Technical Sub-Committee on
18.5.05. The Board expressed its condolences and placed on record the valuable services
rendered by Sri R.A.Audi during the tenure of his services as the Director of the Company.

Subject No.1 :Confirmation of the minutes of the 24th Board Meeting held on 22.2.05.

       Confirmed.

Subject No.2 Compliance report on the minutes of the 24th meeting of the Board.

       Noted.

Subject No. 3: Noting of nomination of Director on the Board.

       The passed the following resolutions:

         “Resolved that the nomination of Sri Abhay Prakash, Addl. Chief
         Secretary & Development Commissioner as a Director on the Board of
         Directors of the Company in place of Sri Chiranjiv Singh vide GO No
         WRD.06.KNN.2004 dated 11.04.2005 issued pursuant to Article 147(c) of
         the Articles of Association be noted.”
         “Resolved further that one equity share held by Sri Chiranjiv Singh be
         transferred to Sri Abhay Prakash.”

       The Board also noted that Sri Abhay Prakash will also function as Chairman of the
Audit Committee in place of Sri Chiranjiv Singh, pursuant to the constitution of this
Committee approved by the Board at its 15th meeting held on 30.6.03 which provides that
the Additional Chief Secretary nominated as Director on the Board to be the Chairman of
the Audit Committee.
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Subject No.4 : Proceedings of the 13th Finance committee meeting for perusal and
               noting.
      Noted.


Subject No.5 : Proceedings of 4th Audit Committee for perusal and noting.
       Noted
Subject No.6 : Proceedings of 57th & 58th Technical Sub-Committee for perusal and
                noting.
      Noted
Subject No.7 : Tender for the work of Remodeling of Malaprabha Left Bank Canal
               from Km. No.6 to 13.

       The entrustment of the re-modeling works of MLBC in the reach Km 6 to 13 to M/s
Bamdev Nayak, the L1 bidder, at the evaluated price of Rs.7,25,35,400/- which is 5%
above the CSR as recommended by the TSC, after obtaining the approval of the Hon’ble
Vice-Chairman and the Hon’ble Chairman on file, was ratified by the Board. The Board
noted that the work had been entrusted pending ratification of the Board as the re-modeling
works had to be completed urgently to let out water in the canal during the ensuing rabi
season.

Subject No. 8 : Evaluation of the tender for rectification works of Bennithora project.

       The entrustment of the rectification works of Bennithora Project to Sri
S.Malleshappa S.Mahur, the L1 bidder, at the evaluated price of Rs. 5,14,89,479/- which is
5% above the CSR as recommended by the TSC, after obtaining the approval of the
Hon’ble Vice-Chairman and the Hon’ble Chairman on file, was ratified by the Board. The
Board noted that the work had been entrusted pending ratification of the Board as the
rectification works had to be completed on an urgent basis to let out water in the canal
during the ensuing rabi season as directed by the Board at the 23rd meeting held on
20.12.04.
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Subject No. 9 : Rescinding the work of consultancy services for Alagi and Balundgi
                  lift main canal of BLIS entrusted to M/s CES Pvt. Ltd. and
                  entrustment of the same to M/s Secon Survey.

          The entrustment of the work of Survey and Consultancy Services for Allagi and
Balundgi Lift Main canal of BLIS to M/s Secon Survey, the L2 bidder, on the same terms
and conditions of M/s CES Pvt. Ltd., the L1 bidder who had defaulted in carrying out the
work as per contractual stipulations, as recommended by the TSC, after obtaining the
approval of the Hon’ble Vice-Chairman and the Hon’ble Chairman on file, was ratified by
the Board. The Board noted that the work had been entrusted pending ratification of the
Board as the Bhima LIS is in the process of obtaining environmental clearances from
MOEF, GOI and it is not possible to proceed with the canal works without completing the
Survey and Investigation works.

Subject No. 10 : Acceptance of tenders by the EIC, UTP, Shimoga.
          The authorization given by the Managing Director to EIC, UTP, Shimoga to
exercise his delegated powers during the six month period prior to his retirement on
31.5.05 in accordance with the provisions of section 13 of the KTPP Act, in respect of the
following proposals was ratified by the Board.

   i.        10 Packages of distributory canal No.2 commencing between km.166-175 of
             UTP main canal wherein the L1 rates received range from a negative premium
             of 36.74% to 40.99% of the amounts put to tender, as per Annexure – I of the
             Agenda Note.
   ii.       2 Packages of head sluice works in the UTP main canal reach between km. 35-
             44 and km. 57-79 wherein the L1 rates were 2.88% and 2.95% above the
             amount put to tender respectively as per Annexure – II of the Agenda Note.
   iii.      5 Packages of left bank main canal works from km.0 to 10.907 of Itagi-
             Sasalwad LI Scheme, after evaluation of the tenders based on the new
             guidelines prescribed by TSC, as per Annexure – III of the Agenda Note.
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Subject No.11: Term Loan of Rs.100 crores obtained from M/s Oriental Bank of
                Commerce and Creation of Security thereon.

       The Board passed the following resolutions regarding the term loan of Rs.100
crores obtained from M/s Oriental Bank of Commerce.

       “Resolved that the action taken by the Managing Director for availment of term loan
       of Rs.100 crores from M/s Oriental Bank of Commerce at the annualized interest
       rate of 7% (6.785% payable monthly) be and is hereby approved.”

              “Resolved further that the execution of the loan agreement and other
       documents as may be required for this purpose under the common seal of
       Company if required be and is hereby approved and ratified.”

              “Resolved further that the Company do secure the term loan of Rs.100
       crores borrowed from M/s Oriental Bank of Commerce together with all interests,
       cost, charges, expenses and all other monies payable in respect thereof by
       creating a first mortgage and charge on the assets of the Company as may be
       agreed to by the Lendor subject to minimum asset cover of 1.25 times in such form
       and manner as may be agreed to between the Lendor and the Company ranking
       parri-passu with the mortgages and charges created / to be created the Company
       in favour of earlier borrowings of the Company by way of bonds, in terms of loan
       agreements / sanction letters / disbursement letters of the Lendor in respect of the
       aforesaid borrowings.

           “ RESOLVED FURTHER THAT the draft of the Mortgage/ Hypothecation Deed
       and such other document to be executed by the Company for creation of security in
       favour of the aforesaid Lendor be finalised by the Managing Director / Company
       Secretary who are hereby authorized severally to settle and finalise the said
       documents on behalf of the Company as also to approve and finalise such other
       deeds, documents and writings as may be required in connection therewith ”;
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          “ RESOLVED THAT the Common Seal of the Company be affixed to the
       stamped engrossment of the Mortgage/ Hypothecation Deed and to such other
       deeds / documents as may be required to be executed in connection therewith in
       the presence of the Managing Director and a Director or the Company Secretary,
       who shall sign the same in token thereof and to make a declaration on oath on
       behalf of the Company in respect of its properties and to do and execute all acts
       and deeds and to approve and finalize such other deeds and documents as may be
       required by the Lendor in connection with the creation of security for the amount
       borrowed as aforesaid.”

              “ RESOLVED FURTHER THAT under any exigency the Finance Committee
       is authorised to give necessary approvals, required from time to time to complete
       the creation of security in favour of the aforesaid borrowing.”

Subject No. 12: Status Report of Projects under KNNL.

       The Status Report on the projects under implementation was discussed and noted.
The following observations were made during the discussions.

Singatalur Project:
       During the discussions, the Board directed the Managing Director to continue the
works relating to this project as already decided in the Board pending administrative
approval for the revised scope of project by the Government for which proposal had been
submitted by the Nigam on 21.4.05.
Upper Bhadra – Stage-I
       The Managing Director informed the Board that in the approved Scheme the Tegur
gudda dam site and the main canal for a length of about 56 Kms. runs in Wild Life
Sanctuary and 45 km in Forest because of which Nigam is unable to go ahead with the
survey and investigation of the project for want of forest clearance. The matter was
discussed with M/s Secon Surveys Ltd. and it was requested to explore the possibility of
taking the canal system and dam proper out of the Wild Life Sanctuary. Since Upper
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Bhadra Stage-I and II are coming under Scheme-A and B there is an urgent need to
prepare the DPRs and it is felt that without detailed survey and investigation, DPR could be
prepared based on aerial maps and satellite images. M/s Secon suggested that the Nigam
could obtain such aerial maps/satellite images from ISRO/Survey of India Department
which may approximately cost about Rs.5 lakhs. If these are obtained M/s Secon have
assured that within 45 days they will prepare the DPRs both for Upper Bhadra Stage –I and
II. The Board agreed with this proposal and approved of entrustment of the Survey
Consultancy work to M/s Secon Surveys after obtaining exemption from Government under
KTPP Act in view of the urgency for preparing the DPR.

Subject No.13 : Report on Funds Position.
        The Managing Director informed the Board that the funds available with the Nigam
was Rs.60 crores which would meet the requirements upto the first fortnight of July ’05.
The Government had been requested to release the Government Guarantee of Rs. 250
crores against the IEBR of the like amount allocated in the budget for FY: 05-06 in one
stretch. Considering the lead time for raising funds from the bond market, in case term
loans at competitive interest rates cannot be obtained in a short period, the Government
would have to release the second installment of capital grant in the second week of July
’05. The matter was being pursued with Government.

Subject No.14 : Budget and Annual Works Programme for the FY : 2005-06.
       After discussions, the Board approved the tentative allocation of Rs.585 crores
made for various projects under the AWP for FY:05-06 as per details in Annexure-V of the
Agenda Note with a physical programme of 32,000 ha. subject to a mid-year review of the
budget by the Finance Committee for deciding on the additional fund allocation, if any, by
the Government based on the progress in implementing the AWP. The Board also
approved the programme for maintenance works amounting to Rs. 29.55 crores for FY :
05-06 as per details in Annexure VI.
Subject No.15 : Borrowing Programme for the FY : 2005-06.
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        The Board approved the borrowing programme of Rs. 250 crores during FY : 05-06
on the basis of the IEBR allocated by the Government for the said year and passed the
following resolutions:
        “Resolved that the borrowing programme of Rs. 250 crores through private
placement of secured, redeemable, non-convertible bonds and/or availment of term loans
from the scheduled banks during the FY: 05-06 in one or more tranches be and is hereby
approved.”

        “Resolved further that the Managing Director be and is hereby authorised to :
        (i)   finalise the issue structure/terms and condition for availing the term loans with
              the approval of Finance Committee;
        (ii) appoint Arrangers to the issue and finalise their terms of appointment with the
              approval of Finance Committee;
        (iii) appoint Registrar and Transfer Agents, Trustees and other intermediaries to
              the bond issues on such terms and conditions as may be required with the
              approval of Finance Committee;
        (iv) request the Government of Karnataka to enter into a Tripartite Agreement(s)
              with the Trustees to the bondholders and to sign the Tripartite Agreement(s)
              and such other document(s) as may be required and also to affix the Common
              Seal of the Company on the documents if required for availing/drawal of the
              loan/borrowing;
        (v) dematerialize the bonds and list the same on the National Stock Exchange by
              entering into Agreements as may be required for this purpose;

        “ Resolved further that the Managing Director be and is hereby authorized to do all
        such things that may be necessary or incidental in connection with the said bond
        issue(s)/ availment of term loans.”

Subject No. 16: Revised estimate of Varahi Irrigation Project.
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       The revised estimate of Varahi project amounting to Rs. 562.38 crores with a B.C.
ratio of 1.55 and utilization of 16.50 TMC to provide irrigation facilities to 15,702 ha. in
Kundapura and Udupi taluks of Udupi district as recommended by the TSC was approved
by the Board for submission to the Government for obtaining administrative approval.
Subject No. 17: Estimate for modernisation of canal system of Bhadra Reservoir
                Project.

       The revised estimate of modernisation of canal system of Bhadra Reservoir Project
amounting to Rs. 471 crores based on SR of WRD and PWD circle for the year 2004-05
with an utilization of 51.4 TMC for irrigating 1,83,190 h.a. as recommended by the TSC
was approved by the Board for submission to the Government for obtaining administrative
approval.

Subject No. 18 : Estimate for modernisation of canal system of Gondi anicut.
               The estimate for modernisation of canal system of Gondi anicut amounting
to Rs. 46 crores based on SR of WRD for the year 2004-05 with an utilization of 2.60 TMC
for irrigating 4465 h.a. as recommended by TSC was approved by the Board for
submission to the Government for obtaining administrative approval.


Subject No. 19 : Norms for evaluation of Tenders.
       Sri K.C.Reddy, Chairman, TSC briefed the Board on the circumstances leading to
the TSC evolving norms for evaluation of tenders. He informed the Board that newspapers
had reported formation of syndicate and collusion between contractors in the recent 7
package tenders invited for UTP main canal reaches resulting in contractors quoting higher
premiums. Curiously, bidders other than L1 also had offered substantial rebate after the
opening of the tender. He also recounted the recent trend of contractors offering high
percentage above SR and after becoming L1, rebates being offered subsequently at CE’s
level and further at MD’s level before the subject was placed before the TSC. Whenever
there were doubts about contractors forming a syndicate, the question arose as to whether
the tenders should be processed further or cancelled and re-tendered. The cancellation of
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tenders would mean delay in project works and there was no guarantee of better rates
being received in the re-tendering process. Therefore, after considerable thought the TSC
had thought it fit to evaluate the tenders received by adopting suitable norms which can
facilitate decision making and at the same time be convincing of the reasonableness and
justification for such decision.
19.2 After deliberations the TSC had laid down the following norms and guidelines to
evaluate and benchmark the bid price offered in respect of all tenders for excavation and
embankment works of canal and CD and lining works.
        i.      20% below the SR in respect of all canal excavations and embankments.
        ii.     + 5% of SR in respect of CD and lining works.
        iii.    in case the overall premium/percentage tendered by L1 is equal or less
                than the + or – premium worked out as per i and ii above, such tenders can
                be considered for acceptance. In all cases where tendered premium quoted
                + or – is higher than the overall premium worked out on the basis of i and ii
                above, the bid price may be negotiated with L1 on the basis of overall
                tender premium + or – worked out as per i and ii above and the quoted
                premium should be reduced to worked out premium.
        iv.     In case the L1 bidder does not agree to execute the work at the price so
                worked out as per these guidelines, the tender should be cancelled and
                fresh tenders called for.

19.3    After further discussions the Board approved the above norms/guidelines
recommended by the TSC for all tenders for canal excavation and embankment works and
CD and lining works to be followed by all the competent authorities exercising delegated
powers for acceptance of tenders. The Board noted that these norms shall not apply in
respect of tenders for aqueduct, bridges, barrages, dams and LISs on turnkey basis which
would have been evaluated on case to case basis.
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     Subject No.20 : Evaluation of tenders of UTP main canal work at km 111,112,113,114,
                     183-192, 175 to 182 and km 30 to 40.46 of distributory No.2 under
                     UTP.
     20.1 The recommendations of the TSC for acceptance of the 7 package tenders of UTP
     as follows was discussed.




Sl.    Km.           Amou        Name of the          Lowest Bid received          Rebate          Bid Price worked out as
No.    Package       nt put     Lowest Bidder                                     offered by        per new guidelines of
                     to                                                               L1                     TSC
                     tender
                                                        Rs.        Premium            %             Rs.         Premium
                                                                       %                                      Percentage
1.     111           3.850    M.V.Subbaiah           4.404         (+) 14.41%       19.50% i.e.,   3.415       (-) 11.28%
                                                                                 (-) 5.09% below
2.     112           11.116   Rajashekar M.Patil     10.947        (-) 1.98%          6.99% i.e    9.511       (-) 14.84%
                                                                                  (-) 5.01 below
3.     113           5.232    M/s            Ramky   5.988         (+) 14.44%       19.475% i.e    4.361       (-) 16.66%
                              Infrastructure Ltd.                               (-)5.035% below
4      114           2.302    S.S. Range Gowda       2.737         (+) 18.86%        23.87% i.e    2.180       (-) 5.32%
                                                                                  (-) 5.01 below
5      175-182       17.966   A.Krishna Reddy        17.926        (-) 0.223%        5.433% i.e    16.563      (-) 7.81%
                                                                                  (-) 5.21 below
6      183-192       25.037   M.Y.Kattimani          27.462        (+) 9.684%       14.684% i.e    22.829      (-) 8.82%
                                                                                 (-) 5.00% below
7      30       to   8.403    Tam Tam Pedda          9.233         (+) 9.877%       11.881% i.e    8.065       (-) 4.02%
       40.46                                                                    (-) 2.004% below
                              Guruva Reddy
       (distributo
       ry No.2)


     The Board noted that the evaluation based on the guidelines laid down by TSC had
     resulted in reduction of Rs.11.773 crores from the quoted amount of Rs.78.697 crores of
     the L1 bids to Rs. 66.924 crores being the price worked out as per TSC norms.

     20.2     The Managing Director brought to the notice of the Board the DO letter No.
     WRD.8.KNN.2005 dated 7.6.05 of the Principal Secretary to Govt., Water Resources
     Department (with respect to the package tenders of Km.112 at Sl.No.2 and Km. 36 to
     40.46 Distributory No.2 at Sl.No.7), copies of which had been circulated to the members at
     the meeting and requested deliberation on the same before deciding on the above
     recommendations of the TSC. After perusal of the letter and discussions thereon, the
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Board decided that the consideration of the acceptance of tender of Sri Rajashekar M.
Patil, L1 bidder for km.112 be deferred until the disposal of the appeal filed by Sri
S.V.Bandi, one of the bidders, pursuant to the provisions of KTPP Act and rules thereunder
and the acceptance of tender of Sri Tam Tam Pedda Guruva Reddy, L1 bidder for Package
Km. 30 to 40.46 (Distributory No.2) be deferred until the report from Government on the
status of blacklisting of the said contractor is obtained.
20.3    After further discussions, the Board approved the entrustment of the work of
remaining package tenders at Sl.No. 1,3,4,5 & 6 at para 20.1 above at the bid price
worked out as per the guidelines of the TSC mentioned therein and in case any of the L1
bidders do not agree to carry out the work at such price then to cancel the tenders and re-
invite the same.

Subject No. 21 : Evaluation of tenders for lifting systems of Balundgi lift under
                  Bhima LIS.

21.1 The Board considered the Agenda Note on the subject and approved the
entrustment of the work of lifting systems of Balundgi Lift under Bhima LIS to the L1 bidder
M/s Kirloskar Brothers Ltd., Pune at their bid price of Rs. 1238 lakhs which works out to
18.58% above the amount put to tender as recommended by the TSC.
21.2    During discussions, the Board noted that the entrustment of this work was on the
basis of the second tender and when compared to the L1 price of the first call there was a
saving of Rs.151 lakhs. Even then the premium quoted by the L1 contractor was on the
higher side. The CE, IPZ, Gulbarga had clarified to the TSC that the tenders had been
called on the basis of line estimate, this being a turnkey work for lifting system. Further,
provisions for intake channels, soft starter and spares and tools required for operation of
lifting systems were not made in the line estimate but the quoted price included these also.

Subject No. 22 : Evaluation of tenders for lifting systems of Allagi lift under Bhima
                 LIS.
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       The Board considered the Agenda Note on the subject and approved the
entrustment of the work of lifting systems of Allagi Lift under Bhima LIS to the L1 bidder
M/s Lakshmi Civil Engineering Services, at their bid price of Rs. 691.21 lakhs which works
out to 19.925% above the amount put to tender as recommended by the TSC.
22.2   During discussions, the Board noted that the entrustment of this work was on the
basis of the second tender and when compared to the L1 price of the first call there was a
saving of Rs. 31.50 lakhs. Even then the premium quoted by the L1 contractor was on the
higher side. The CE, IPZ, Gulbarga had clarified to the TSC that the tenders had been
called on the basis of line estimate, this being a turnkey work for lifting system. Further,
provisions for intake channels, soft starter and spares and tools required for operation of
lifting systems were not made in the line estimate but the quoted price included these also.

Subject No. 23 Entrustment of balance works of Package – II Contract of Hipparagi
               Barrage Gates.

23.1 The Board considered the Agenda Note on the subject. During discussions, the
Board noted that the entrustment of the balance work of package – II (withdrawn from TSP)
by calling tenders would have been time consuming. It was necessary to utilize the working
season for erecting all the crest gates so that water could be stored in reservoir during
2004. The best course of action available to achieve this objective was to entrust the
balance work to the Package – I contractor by negotiating the price. M/s Batpasco Patson
had offered to execute the balance work at a price of Rs.443.68 lakhs, which was 10%
above the estimated cost of Rs. 403.33 lakhs, and had stipulated certain conditions. On
negotiations they had withdrawn all the conditions agreeing to execute the balance works
at the estimated cost. The Board further noted that the cost of the balance works viz.
Fabrication and Erection of 5 gates along with hoisting arrangements withdraw from
package-II contractor M/s TSPL, based on CWC norms, worked out to Rs.664.72 lakhs
which is 39.32% above the estimated amount of Rs.403.35 lakhs based on WRD, SR of
2003-04 and that M/s Batpasco Patson (JV) had taken up the package-I works at a
premium of 32.73% below the estimated cost put to tender based on CWC norms
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23.2   After further discussions, the Board approved the entrustment of the balance work
of Package – II, Contract of Hipparagi Barrage Gates to M/s Batpasco Patson (JV) the
Contractor for Package-I at Rs. 403.35 lakhs (as per SR of WRD 2003-04) as
recommended by the TSC.

Subject No. 24: Proposal for entrustment of construction of intake structure & power
                block of the Mini Hydel Scheme of SLIS to M/s.Tungabhadra Power
                Company Pvt. Limited (TPCL).

24.1 The Board considered the Agenda Note on the subject. The Board noted that the
proposal involved the construction of 37.20 mts. of non-overflow section from Ch.754.00 m
to 791.20 m for putting up the intake structure and power block for power generation by
M/s TPCL, the agency setting up the Mini Hydel Scheme. The cost of such construction
estimated at Rs.2.60 crores would have been otherwise borne by the Nigam and therefore,
there will be saving to the Nigam to that extent. The maintenance and control of this reach
of non-overflow section will be with the Nigam.

24.2   After discussions, the Board approved the proposal for construction of non-overflow
section of SLIS Barrage from Ch. 754.00 m to 791.20 m estimated to cost of Rs. 2.60
crores by M/s Tungabhadra Power Company Pvt. Ltd. by deleting the same from the scope
of M/s KSCC, as recommended by the TSC.

Subject No. 25: To accord clearance to M/s. Krishna power Technologies Pvt. Ltd for
                 construction of mini Hydel scheme at Varahi project.

       The Board considered the Agenda Note on the subject and approved the proposal
for providing intake point for power generation below MDDL and providing 0.74 Ha of land
on lease basis for implementation of Mini Hydel project to M/s. Krishna power
Technologies Pvt. Ltd. subject to compliance with the conditions putforth by the TSC and
the terms and conditions imposed by the Government while sanctioning the construction of
Mini Hydel Scheme. The Board desired that a separate agreement incorporating all the
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terms and conditions should be executed with the said agency by the Executive Engineer
of the division on behalf of the Nigam.
Subject No. 26: Rectification Works of Amarja Project.

26.1       The Board noted that on account of the defective construction of canals of this
project recently transferred to the Nigam, it had not been possible to supply water for
irrigation. The Chairman and Hon’ble Chief Minister expressed his unhappiness about the
sorry state of affairs of this project which had been taken up for implementation almost
three decades ago. He desired that the implementation of rectification measures should be
taken up immediately and all possible efforts made to let out water for irrigation by
June ’06.

26.2 The Managing Director informed the Board that the survey and investigation work
had been taken up in the entire canal reach by M/s Secon surveys. Immediately on
completion of survey and investigation, the rectification works would be taken up. The CE,
Gulbarga        had    estimated     the   balance     cost    of   the    project    including
rectification/remodeling/rebuilding works at Rs.100 crores approximately. In order to take
up the rectification works, the works of previous contracts had to be closed on as is where
is basis

26.3       After further discussions, the Board authorised closure of the works of the previous
contracts on as is where is basis by the present officers so that rectification/remodeling/
rebuilding works can be taken up without further delay in consultation with the TSC. The
Board further desired that as far as possible the work should be tackled simultaneously
through out the entire length of the canal.

26.4       The Board also desired that the matter may be referred for investigation into
omission and commissions that have occurred in the execution of works of canal and
distribution systems for appropriate action against the officers responsible for the losses
incurred to Government/Nigam.
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Subject No. 27 : Providing special resettlement facilities to Panagutti village under
                 Markendaya project

        The proposal for providing special resettlement facilities to the villagers of Panagutti
under Markandeya Project at an estimated cost of Rs. 75 lakhs as recommended by the
Commissioner (Rehab & LAQ) and Ex-Officio Secretary to Government, Revenue
Department was approved by the Board since the Rehabilitation and Resettlement of the
entire villagers in a different location would cost about Rs. 3 to 4 crores.

Subject No. 28 : EFI pertaining to the construction of VLBC Km. 19 & 21

        The EFI proposal in respect of construction of VLBC Km 19 and 21 due to payment
of extra lead charges of Rs. 4.88 lakhs and Rs. 9.80 lakhs respectively, was approved by
the Board as recommended by the TSC keeping in view that the work had been executed
as per supplementary agreements entered into by the Department prior to transfer of the
project to the Nigam.

Subject No. 29 : EFI pertaining to the construction of GRBC at Km. 176 to 180.
        The EFI proposal in respect of construction of GRBC at Km 176 to 180 amounting
to Rs. 64.48 lakhs which is 32.38% over the contract value due to variation in strata
classification, provision of CNS soil lining, Nala training and provision of new rates as per
clause 15 (d) was approved by the Board as recommended by the TSC. The Board noted
that the payment of new rates as per clause 15(d) which amounted to Rs. 50.73 lakhs was
due to stoppage of work for more than six months for want of forest clearance.

Subject No. 30 : EFI pertaining to the construction of Singatalur Barrage of SLIS.

        The EIRL proposal in respect of construction of Singatalur Barrage of SLIS
amounting to Rs. 87.85 lakhs due to the extra item of excavation in hard rock for
foundation of Barrage resulting in an EFI of Rs.22.10 lakhs after considering the saving of
Rs.65.75 lakhs due to non-execution of SRRB was approved by the Board as
recommended by the TSC.
                                             17




Subject No. 31 : EFI pertaining to UTP main canal work Km. 42 to 44 (Package -3)
                 and Km. 61 (Package – 13A).

       The Board approved the following EFI proposals as recommended by the TSC.
       a) EFI pertaining to Package – 3, Km.42-44 of UTP main canal
           Rs.118.79 lakhs which is 80.152 % over the contract value due to extra
           quantities and extra item of HRCB.

       b) EFI pertaining to Package – 13A, Km 61 of UTP main canal
           Rs. 53.65 lakhs which is 19.66% over the contract value due to increase in
           quantities of excavation on account of provision of lead of drain and Nala
           training.

Subject No. 32 : EFI pertaining to the construction of UTP main canal at Km. 100

       The EFI proposal in respect of construction of UTP main canal at Km. 100
amounting to Rs. 276.84 lakhs which is 46.93% above the contract value due to the
reasons detailed in the agenda note on the subject was approved by the Board as
recommended by the TSC.

Subject No. 33: EFI pertaining to the construction of UTP main canal at Km. 138 to 140.

       The EFI proposal in respect of construction of UTP main canal at Km. 138 to 140
amounting to Rs. 99.94 lakhs which is 44.57% above the contract value due to variation in
strata, increase due to soil from burrow area, EIRL due to sand and boulder and increase
due to CD work, drain work etc. was approved by the Board as recommended by the TSC.

Subject No. 34: EFI pertaining to the construction of UTP main canal at Km. 154 & 155.

        The EFI proposal in respect of construction of UTP main canal at Km. 154 & 155
amounting to Rs. 92.98 lakhs which is 31.03% above the contract value due to variation in
strata, increase in cost due to increase in quantities of in-situ concrete lining etc. and
                                             18




increase in cost due to change in design of CD works was approved by the Board as
recommended by the TSC.

Subject No. 35: EFI pertaining to the construction of UTP main canal at Km. 156.

       The EFI proposal in respect of construction of UTP main canal at Km. 156
amounting to Rs. 123.48 lakhs which is 50.85% above the contract value due to increase in
depth of striping, increase in quantities of burrow area, material for embankment, providng
CNS lining and increase in CD work items due to change in foundation level was approved
by the Board as recommended by the TSC.

Subject No. 36: Kalasa Nala and Bandur Nala Diversion Scheme – Proposal to under
                take works in non-forest area.

       The proposal to undertake works in non-forest area in the circumstances explained
in the agenda notes was discussed. In view of the continuing agitation by the people of the
region and the indefinite delay in the resolution of dispute by the Government of India, in
view of the objections raised by Government of Goa, the Board desired that a suitable
proposal be sent to the Government seeking exemption under KTPP Act, for entrustment
of construction of diversion channel in the non-forest area (which is about 4.4 Kms. out of
4.8 Kms. of the entire length of the canal in Kalasa Nala and 4.9 Kms out of 5.8 Kms in
Bandur Nala) to a Government agency.




       (P.N. Sreenivasachary)                                       (N. Dharam Singh)
         Managing Director                                              Chairman

				
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