Roughton International Ltd.–Theme Engineering Services Pvt. Ltd.

Joint Venture
28, 1st floor, 1st Street, Balaji Nagar, Katpadi,
Vellore–632007, TN. Tele/Fax:+91 416 2249929 / +91 92449 01808
E-mail:ickwrithemejv@gmail.com / kgiri.ickw@gmail.com

Our Ref: RIL-TES/RE/NHAI/PIU (K’giri)/NH-46/KW/2015/1163

10thJune 2015 eee

Project Director e
Project Implementation Unit
National Highways Authority of India
Door No. 259/1, Salem Main Road
Near KAKC Petrol Bunk, Krishnagiri – 635 001
Tamil Nadu e-

Dear Sir,

Subject: Independent Engineer Services for the work of Six Laning of KrishnagiriWalajahpet Section of NH-46 from Km
0.000 to Km 148.300 in the State of Tamil Nadu under NHDP Phase-V - Change of Scope as per Article 16
of CA – Reg.

Reference:
th
1. NHAI Letter No: 11016/2/2009/PIU-K’giri/831 dated 08 April 2015
st
2. Concessionaire Letter No: L&T KWTL/NHAI/PD/15-16/702 dated 1 April 2015
th
3. Concessionaire Letter No: L&T KWTL/NHAI/PD/13-14/604 dated 27 October 2014
th
4. IE’s Letter No: RIL-TES/TL/NHAI/PIU (K’giri)/NH-46/KW/2015/1125 dated 11 March 2015
5. NHAI Letter No: NHAI/NHDP-V/MC-II/BOT/KW/IC/2009/61 dated 26-05-2015

th
Concessionaire vide letter No: L&T KWTL/NHAI/PD/13-14/604 dated 27 October 2014 has agreed to the Change of Scope
recommended by PIU concerning various issues vide NHAI Letter No. 11016/2/2009/PIU-K’giri/2435 dated 21-10-2014.
Considering the above the Concessionaire’s deviating their earlier acceptance letter No. 604, dated 27.10.2014 is not justified.

We do not agree that we are holding the PCC for more than 10 months since there were several issues to be resolved by
Concessionaire and NHAI before issuance of PCC, as observed from the following correspondence:

1. Decision of Executive Committee regarding construction of Longitudinal Drain was communicated vide NHAI letter No:
2871 dated 24.010.2013.
2. Concessionaire has communicated their willingness to agree for negative COS for pipe drain vide their letter No: 1592
dated 01.11.2013 if determined by IE.
3. Concessionaire has requested to de-link the pipe drain from the issuance of PCC vide their Letter No: 1662 dated
19.12.2013
4. IE has recommended the estimate for pipe drain (COS) vide Letter No: 790 dated 28.12.2013
5. PIU has commented on pipe drain estimate vide Letter No: 1282 dated 23.05.2014 and IE has given the comments to
NHAI vide IE Letter No: 940 dated 12.06.2014.
6. IE have recommended to NHAI for issuance of PCC vide IE Letter No: 948 dated 21.06.2014.
7. Submission of draft supplementary agreement and punch list for 141.87 km (as required by NHAI, RO, Chennai) vide
concessionaires’ letter No: 1883 dated 06.09.2014.
8. PIU vide Letter No: 2326 dated 21.09.2014 queried on the deviations in the project.
9. IE has submitted the COS to NHAI for deviations vide Letter No: 1042 and 2435 dated 20.10.2014.
10. PIU has recommended to RO, Chennai for other pending issues concerning PCC vide Letter No: 2435 dated
21.10.2014.
11. PIU has intimated to IE that the observation of pipe drain negative COS estimates has been communicated to NHAI,
HQ and also requested IE to submit the comprehensive COS proposals.
12. IE has submitted the comprehensive COS proposals to PIU vide Letter no: 1125 dated 11.03.2015.

th
According to clause 12 of TOR of the IE Service Agreement dated 04 April 2011, the PCC or CC can only be issued by
authorized representative of IE, only with the prior approval of NHAI. In line with this condition, IE has dealt with the matter of
PCC as and when the Concessionaire made the request to IE.

RIL: Head Office: A2, Omega Park, Electron Way, Chandlers Ford, Hampshire SO53 4SE, UK. Tel: +44 (0) 23 8027 8600 fax: +44 (0) 23 8027 8601, email: hq@roughton.com
India Office: Plot No: 120, 4th Main, 2nd Cross, Balamari Soceity, Mahindra Hills, Secunderabad (A. P), India. Tel/fax: +91 (0) 40 2773 4142, email: krishna@roughtonindia.com
TES: - B-24, Gokul Vatika, Jawahar Circle, Jaipur – 302017 (Raj), Tel: +91-141-2724495-97, Fax: +91-141-2724491, email: theme@themeengineering.com
1. Reduction of Carriageway Width
As Schedule B clause 1.1 which is reproduced below:
“The paved carriageway shall be 25m wide”

As Schedule B clause 2.1 & 2.2 which are reproduced below:

“2.1 - Six laning shall include construction of the six lane Project Highway as described in Annex-I of this Schedule –B
and Annex – I of Schedule-C”.
“2.2 - Six laning shall be undertaken and completed by the Concessionaire in conformity with the Specifications and
Standards set forth in Annex – I of Schedule – D.”

a. Reduction in width of Shyness

Reduction in width of Shyness is a negative change of the Scope of work as per the Schedule B & C of CA. We
already have recommended to NHAI to deal with negative changes with the Concessionaire.

b. Deletion of Paved Shoulder

Deletion of Paved Shoulder is a change of the Scope of work as per the Schedule B & C of CA. We already have
recommended to NHAI to deal with negative changes with the Concessionaire.

2. Stage Construction of Pavement Layers

IE vide letter No. RIL-TES/SQME/L&T/NH-46/KW/2014/1951 dated 03.09.2014, requested the Concessionaire to submit the
cost estimate on account of the 10 years pavement design concerning the bituminous layers for review. Since Concessionaire
has not submitted the details of cost estimates saved by them on account of 10 year stage construction of bituminous layers,
based on the guidelines of NHAI letter No. NHAI/NHSP-V/M-II/BOT/KW/596 dated 15.01.2015, IE estimated investment saved
by the Concessionaire, on this account, at INR 78.20 Crore. This was submitted to NHAI, vide IE letter No. RIL-
TES/TL/NHAI/PIU (K'giri)NH-46/KW/2015/1125 dated 11.03.2015.

3. RE wall length reduction compared to scope

As per Corrigendum – II (a)
Table of Appendix –XVI the required length for retaining structures are given. As per the actual construction the length of RE
wall is reduced, which should be treated as negative COS. This has been submitted to NHAI, vide IE letter No. RIL-
TES/TL/NHAI/PIU (K'giri)NH-46/KW/2015/1125 dated 11.03.2015.

4. Existing RCC Drain shifting

It is clarified on “RCC drain shifting” that “the existing RCC drain is the property of Authority”, therefore, the cost implication for
using the existing RCC drain involves negative change of scope.

This has been submitted to NHAI, vide IE letter No. RIL-TES/TL/NHAI/PIU (K'giri)NH-46/KW/2015/1125 dated 11.03.2015.

5. Reduction in Median Width

The cost of savings on reduction in median width to the Concessionaire is INR 1.76 Crore, whereas, the cost savings adjusted
to provide the provision of double head W metal beam crash barrier in the central median which was estimated around Rs. 2.07
Crore. But the concessionaire has already completed the provision of double head W metal beam crash barrier in the central
median. Hence IE has recommended the cost savings to NHAI vide IE letter No: 1019 dated 18.09.2014 to resolve this issues.

6. Construction of Pipe Drain

IE, through letter No. 790 dated 28-12-2013, reviewed the estimated cost of Hume Pipe drain and proposed INR 3,37,59,746/-
as savings, to be passed on to NHAI. IE recommended to NHAI for a negative change of scope, and NHAI, vide its letter No. 25
dated 06-01-2015 accepted construction of longitudinal pipe drain, instead of RCC covered rectangular drain with negative
change of scope.

Through Letter No. 1125, dated 11.03.2015, IE has communicated to NHAI and copy to Concessionaire; Summary of Change
of Scope proposal is prepared in accordance with Article 16 of Concession Agreement.
As per the latest direction of the Competent Authority, in-principle approval for the negative Change of Scope is accorded by
the Competent Authority, as required to be complied with the Checklist particularly item (5) of NHAI HQ Letter No.
NHAI/NHDP-V/MC-II/BOT/KW/IC/2009/61 dated 26-05-2015:

5. At-least proposal for positive Change of Scope has been referred to the Authority for approval with the
recommendations of IE and negative Change of Scope, if any, has been approved in-principle by the
Authority”.

Considering the above the Concessionaire’s deviating their earlier acceptance letter No. 604, dated 27 th October 2014 is not
justified.

Yours faithfully,

Venkata Krishna Adavi

Authorised Signatory

Encl: A/a

Cc:
1. Shri. Alok Deepankar, CGM (T), NHAI, New Delhi (by email and hard copy by courier)
2. Shri. I.S. Rana, GM (T) NHAI, New Delhi (by email and hard copy by courier)
3. Shri. Chinna Reddy, CGM (T)/RO, NHAI, Chennai (by email and hard copy by courier)
4. Shri. Inderjeet Singh Gill, Regional Director of Roughton International Limited, Malaysia (by email)
5. Shri Tarun Rawat – MD, TES, Jaipur (by email)