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GAIL Gas Limited(A Govt. of India Undertaking) (Awholly owned subsidiary ofGAIL (India) Limited - A Maharatna Company)

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oft 35 q 36, ~-1, ~-201301 (ll.tft.)

CORPORATE OFFICE:13TH & 14TH FLOOR, GAILJUBILEE TOWER.B 35 & 36, 5ECTOR-1, NOIDA-20l30l (U.P.)

lJ>R/PHONE: +91-120-2446400, 4862400~/FAX: +91-11-26185941gailgashelpline@gail.co.in

GAIL GASINOIDAlPNGRB/61N0rth Goa GA/Acceptance t'l) 36?--1To, .____; ~\ -;:r ,6

The Secretary,Petroleum & Natural Gas Regulatory Board,1stFloor, World Trade Centre, Babar Road,New Delhi- 110 001

Date: 29TH June 2016

Sub: Submission of Duly stamped and signed Schedule-D (Authorization)of North Goa District.

Ref: PNGRB Letter No.: PNGRB/CGDIBID/612015/22/GA-North Goa District - Bid Evaluation,Dated: 24.06.2016

Dear Sir,

This has reference to your above referred letter enclosing therewith the Grant of Authorization toProposed Consortium of GAIL Gas Limited and Bharat Petroleum Corporation Limited for developmentof City Gas Distribution Network in the Geographical Area of North Goa District.

At the outset, we express our sincere thanks for the release of authorization in favour of ProposedConsortium of GAIL Gas Limited and Bharat Petroleum Corporation Limited. As desired, we arereturning herewith one copy of Schedule-D duly stamped and signed on each page of the document as atoken of our acceptance of the same_

Thanking you.Yours faithfully,

~(Pankaj Kumar Pal)

Chief Executive OfficerEncl: As stated above

Copy to: ED (Gas), BPCL, Mumbai - For kind information please

~~:

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REGD. OFFICE:GAIL BHAWAN, 16,R.K. PURAM,BHIKAIJI CAMA PLACE, NEWDELHI-110066, INDIA

GAIL Gas Limited

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www.gailgas.com

Authorized Signatory

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Schedule D[see regulations 10 (J) and 18 (7)]

Grant of authorization for laying, building, operating or expanding CGD network

To,Consortium of Mis GAIL Gas Limited and Mis Bharat Petroleum Corporation Limited,[Kind Attn: Mr. Pankaj Kumar Pal, Chief Executive Officer]GAIL Gas Limited,GAIL Jubilee Tower,13thand 14thFloor,B-35 and 36, Sector-I,NOIDA-201301

Subject: Grant of Authorization to the Consortium of Mis GAIL Gas Limited and MisBharat Petroleum Corporation Limited for development of City Gas DistributionNetwork in the Geographical Area of North Goa District.

Sir,

With reference to your application-cum-bid for grant of authorization for laying,building, operating or expanding the CGD network in North Goa District, it hasbeen decided to grant you the authorization subject to the Petroleum and Natural GasRegulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City orLocal Natural Gas Distribution Networks) Regulations, 2008 and the followingterms and conditions:

1. The Authorized Area for laying, building, operating or expanding theproposed CGD Network shall cover an area of 1675.81 square kilometers and asdepicted in the enclosed drawing .

2. The activities of laying, building, operating or expansion of the CGD Networkto commence within a period of 365 days from the date of this authorization.

3. The activities permitted above shall have to be completed as per the approvedtime schedule enclosed at Annexure 1. Any failure on the part of the entity in

~ complying with the milestones prescribed in the time schedule shall lead toconsequences as specified under regulation 16 of the Petroleum and Natural Gas

0_'

~~i I} ) Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or)~j!i~~2~~ Local Natural Gas Distribution Networks) Regulations, 2008.

~ili~1~~~t 4. . T~e entity sh.all design a.nd ins~all an optim~l size of the infra~tructure in te~s)~g1~~~~.': of pipelines of vanous types including steel belting of the author~zed area, onl~et. ~ g. ~~ ¥~-:;:~compressors of adequate capacity for compressing of natural gas into CNG, allied3§~~!~i equipments and facilities in the CGD network as identified in its DFR depending~~(1) 8L

a. .-

upon the potential demand for natural gas. The infrastructure in the CGD networkshould be adequate to maintain uninterrupted flow of natural gas in the pipelines andbe also able to maintain supplies at adequate pressure to online CNG stations.

5. The entity shall maintain an uninterrupted supply of natural gas to allcategories of customers in the CGD network. In the event of any disruption in thesupply of natural gas in the CGD Network, first priority shall be accorded torestoration of supplies to domestic PNG customers. In case of disruption of supply todomestic PNG customers for more than twelve hours, the entity shall compensate tothe domestic customer on the following basis:-

(a) the normative volume of natural gas consumption for the first domesticPNG connection for cooking requirements based on last three monthsweighted average consumption per day to be applied for each day'sdisruption and multiplied by ten;

(b) normative value of natural gas consumption shall be based on last threemonths' weighted average billing price of natural gas for supplies to thefirst domestic PNG connection for cooking requirements; and

(c) the value of compensation shall be equal to normative volume of naturalgas consumption as per clause (a) multiplied by normative value as perclause (b) and shall be adjusted by allowing a credit to the domestic PNGCustomer in the next billing cycle or in the next pre-paid smart card incase of smart card metering.

(d) In case the disruption of supplies is attributed to any fault of the domesticPNG customer, no compensation shall be payable by the entity.

6. The entity is allowed an exclusivity period under the Petroleum and NaturalGas Regulatory Board (Exclusivity for City or Local Natural Gas DistributionNetworks) Regulations, 2008, in respect of the following:

(a) 300 months from the date of issue of this communication for laying,building and expansion of the CGD network; and

(b) 60 months from the date of issue of this communication in terms of anexemption from the purview of common carrier or contract carrier for theCGD network:

Provided that the entity meets the obligations in line with the Petroleum andNatural .Gas Regulatory Board (Exclusivity for City or Local Natural Gas

3R~ri l4i~n Networks) Regulations, 2008:VIND KUMAR3T'R ~T<;nl:·t"-.! GAil Gas Urn/'ted

Additional Ac1v,,,..,rI~)r.:nm31R ~fi!'RN'"~I 1,11·),1''' , --R{L'etroleum & Natural G::lS f~.'c "

lI'Il.f11(l",.q~ ~ ,': ~1·,'"1st Floor, World Tri.lL,e (C! " AifliJ'{ ~. -r,f f ~ <".1) 1 iuuo I uthorized Signatory

Babar Road, New Dellli-l10001

Provided further that the period of exclusivity allowed under sub-clause (a) orsub-clause (b) may be terminated before the expiry of the period mentionedabove in line with the provisions under Petroleum and Natural Gas RegulatoryBoard (Exclusivity for City or Local Natural Gas Distribution Networks)Regulations, 2008.

7. The authorized entity shall be required to take prior approval from the Boardfor creation of any lien, charge or hypothecation of the CGD network tosecure finances for the project and furnish details of utilization of funds.However, in case of raising funds from any financial institution or bank, theentity will be required to only inform the Board of the sanction of the fundswithin a period of seven days.

8. The entity shall submit a detailed and clear financial closure report to theBoard within a period of one hundred and eighty days from the date ofauthorization issued by the Board under regulation 10 of Petroleum andNatural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate orExpand City or Local Natural Gas Distribution Networks) Regulations, 2008.

9. The entity shall publish on its website the network tariff for transportation ofnatural gas as well as the compression charge for CNG in the CGD network inthe authorized area which is also annexed to this schedule.

10. The entity shall publish the applicable retail selling price of PNG for allcategories of customers and also for the purpose of invoicing in Rs.!MMBTU.

11. The entity shall publish and display the retail selling price of CNG for thepurpose of invoicing to CNG customers in Rs.! Kg at all CNG dispensingstations.

12. The furnishing of performance bond ofRs 1504 Crore (Rupees One ThousandFive Hundred and Four Crore Only) is a guarantee for timely commissioningof the project as per the prescribed targets in the bid and for meeting theservice obligations during the operating phase of the project.

13. The entity shall comply with the applicable provisions under the Petroleumand Natural Gas Regulatory Board (Authorizing Entities to Lay, Build,Operate or Expand City or Local Natural Gas Distribution Networks)

.-Regulations, 2008, the Petroleum and Natural Gas Regulatory Board~ (Exclusivity for City or Local Natural Gas Distribution Networks)

_~F.!r.:':f'!"~tivns, 2008, relevant regulations for technical standards andAR'Q~ rctti6'ns, including safety standards, any other regulations as may be

~~~Vi~le' and -the provisions of the Act. GAl L Gas Limited'etroleUl'll& ~ t'.o,; ~t·, ~

gQ1f tfiiI. Trade C'.t st F~ ~~..fl-llOUu''.r;l 'd New Delhi-11 000' A th .

.» Roa • U onzed Signatory- - ---------------

14. m case the autnonzation ot the entity IS terminated, the Board may assign therights and obligations of the entity to any agency or another entity on suchterms and conditions, as it may deem fit. Further, the entity may be required,as per the directions of the Board, to continue the operations of the CGDnetwork at the same level till another agency or entity appointed by the Boardtakes over the full control of the CGD network.

You are requested to confirm your acceptance by filling-in the acceptance of thegrant of authorization provided below and return the same in original. (Please notethat all pages along with the Annexure are to be initialed & stamped).

Yours faithfully,

Dated:~~

ARVIND KUMAR3ftR ~<f'T>/ ~ _~".,r--'

Additional Advis er - ~V' ~ • ,\. I~~aIR~"~Tf:)I:"\1I1'11 "l-~b ~ l bPetroleum & Natural Gas Reg~ ,t, , (Arvind Kumar)

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~1~.~I~~f:l~~~Ul Additional AdviserBabar Road, New Oelhi-110001

Acceptance of the Grant of Authorization

I I We hereby accept the grant of authorizat~on issued by t~~?~ videlep.er_ I •

ref. PN(\ R g/c..Citl B!J)lbl201rJ2.1dafed"'!1f~dt~:2~I~n~~~'comply with all the terms and conditions subject to which II We have been grantedthe authorization for laying, building, operating or expanding city or local naturalgas distribution network in the authorized area of North Goa District.

Date:Place:

Signature of the EntityA./ln'~~~H~)'i!W"tnatorySignatory

ANNEX 1 - GA of North Goa District

Minimum Work Programme as per BID

Minimum Work Program as per Regulations (to be completed during first five yearsof exclusivity)

Inch- Kms of Pipeline to be Laid. No. of Domestic PNG Connections

650 9588

Year wise Break Up of targets

Total Inch- Kms of Pipeline to be Yearl Year 2 Year 3 Year 4 YearSLaid. (20%) (50%) (80%) (90%) (100%)

650 130 325 520 585 650

Year wise Break Up of targets

Infrastructure for PNG Domestic Yearl Year 2 Year 3 Year 4 YearSConnections. (15%) (50%) (70%) (100%)

9588 - 1438 4794 6712 9588

Rate

Network Tariff (from 1-25 Years) Rs. per MMBTU 0.01Compression Charge (from 1-25 Years) Rs. per Kg. 0.01

GAIL Gas Limited

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Authorized Signatory

N

A

CAName Road/s Passin ThroughCA-Ol NH 17

CA-02 NH 17,sH31

(A-O] 511]1 SllllO SH124CA-04 NH 11 NH4A

CA-OS NH17BNH4ASH31SOUTH GOA

CA-06 SH31,SH 124

NORTH GOA DISTRICT GEOGRAPHICAL AREA(GOAl

lSUMAl' /. '\,~,

- ~ ~ --u.

'•. .... .../

--Total Population within the Geographical Area as pet 2011

8.'IILKs.(Applox.)

Total Geographlca' Area :Sq.KMs No. Charae Areas1575.81 .

Charge Areas kfentlflcaUon Tahsil NamesCA~' p~

CA~2 B~,",CA~' Blc:halirn

CA4< lls-.:li

CA<IS P•••••CA-06 Satan

LEGEND

LANDMARKS• DISTRICT HEAD QUARTER

IiiiiI MANDAL HEAD QUARTER. MAJOR TOWNS

VECTORS- NAnONAL HIGHWAY

-- STATE HIGHWAY

~ MAJOR ROAD

-- RAILWAY

D GABOUNDARY- WATER BODIES

VILLAGE POPULATION

••• VIUAGE WITH POPULATION 5000 AND ABOVE

REMARKS:-

i. Landmarks are indicative in nature.ii. Each charge eree is depicted in differenl coIol and is enclosed by phYSical

teanees such as roads, rivers, fililway tracks or administrative boundariesas shown in the map.

ii. Thr.. map IS • pan of 'Bpphcation-cum-bld document' fOf theNorth Go. District Geographical area.

MAP SCALE

0 1.5 3 6 9 12Kilometers

PETROLEUM AND NATURAL GAS REGULATORY BOARD

1.t'1o«, World Tr* C.v., SM" RoMI, N_o.H110D01

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I Map No.lpNGRBlCGDriBIDri6l201512VGA.North Go. District

I Do>, !JUne.2015

I Map THiel North Go. [)tstrid Geographical Area