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    ANNEXURE-14

    OPERATIONS AND MAINTENANCE AGREEMENT FOR MANAGINGINFRASTRUCTURE SITES BETWEEN INFRASTRUCTURE PROVIDER ANDUNIVERSAL SERVICE PROVIDERS

    Preamble

    This agreement, hereinafter called the Operations and Maintenance Agreement, is made on the day

    of 2008 to be effective from , 2008 between BHARAT SANCHAR Nigam Ltd, the

    Infrastructure Provider, having registered office at Bharat Sanchar Bhawan, Harish Chandra Mathur

    Lane, Janpath New Delhi110 001. (Hereinafter called IP) of the ONE PART and

    M/s..

    (Universal Service Provider) having registered office at ..

    (Hereinafter called USP which expression shall unless repugnant to the context, include its successors

    in business, legal representatives and administrators or permitted assigns) of the OTHER PART.

    IP has entered into agreement bearing no. 30-148/2007USF (Part-A) dated 14/05/2007 with DoT

    USOF for setting up sharable Infrastructure Sites in Cluster and USP has entered into

    agreement bearing no. 30-148/2007-USF (Part-B II) dated with DoT USOF for providing rural

    mobile communication services at these specified clusters.

    NOW the AGREEMENT WITNESSETH shall cover the following salient features:

    1 Contract Period

    The validity of this contract shall be for a minimum period of five years.2 General Conditions

    This agreement is applicable for managing the infrastructure sites created by IP and shared by

    the USPs for providing mobile services in the specified areas.

    3 Responsibilities

    a. IP

    (i) The IP shall be responsible for complete site development starting from site

    acquisition to site readiness, O&M, warranty support, preventive & routine

    maintenance, AMC services and availability equipment/facility as per SLA for all

    passive infrastructure elements under IPs scope as defined in Clause 6

    The scope of IP and USP shall be as defined by DoT USOF. As soon as the site is

    acquired the IP shall make sufficient effort to provide an AC Main power supply

    connection at the site. For the sites where it is not possible to provide AC Main

    Power Supply due to non-feasibility, an additional DG set shall be provided by

    the IP and both the parties agree that, for such sites, the DG will be the primary

    source of power.

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    (ii) The IP shall provide security for each site by deploying personnel at the site, the

    cost of which shall be shared equally among Part B USPs. This cost is included in

    the fixed maintenance charges as mentioned in Schedule I. However the

    insurance of the respective equipments shall be the responsibility of the

    individual IP/ USP.

    In case of a EB power outage, IP shall ensure operation of the site cyclically

    with battery and DG, where battery shall be operational till such time it is

    discharged to a level of 45 volts. (the DG set shall be operated when the

    battery voltage of any of the three USPs reaches the minimum defined level of

    45 volts). As this equipment is not required as per the conditions of the USOF

    Tender document but shall be provided additionally by IP for facilitation of

    maintenance of economical services, the capex incurred towards installation

    and procurement of this equipment shall be born equally by all the USPs.

    Installation of this equipment shall not be linked to the commissioning of thesite.

    4. Provision and acceptance of service

    IP shall intimate readiness of each site to USP. And USP shall accept the infrastructure on or

    before 2 months from the site being ready as defined in USOF tender.

    The date of commencement of services shall be the date on which any of the USP start

    radiating from the site or 2 months from the site readiness whichever is earlier. All the

    charges which is mentioned in Schedule I (fixed maintenance Charges + Energy charges) shallstart from the date of commencement of services. Till two months from the site readiness the

    complete charges shall be borne by the USPs who had started radiating from the site.

    However After two months from the site readiness, charges shall be borne equally by all the

    three USPs regardless whether they start radiating from that site or not. While intimating Site

    readiness following information shall be communicated by IP to USP

    Site layout showing the locations of each USP for constructing their OD BTS foundation. Location of Earth pits & Earth conductor routing plan. Identification for Sub-meter for each USP.

    5. Uptime

    During the term of this agreement, the IP shall ensure proper functioning of the infrastructure

    sites, for a AC Power uptime of 98% (Ninety eight percent) per cluster on a monthly basis.

    Availability to be calculated using the following formula,

    Uptime Availability = 100 X((No. of sites in the cluster X Number of Hours in the month)

    Cumulative Downtime in Hours of all Sites in the Cluster in that month ))/(No. of Sites in the

    cluster X Number of Hours in the Month)

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    However for sites falling in difficult clusters the uptime shall be 95 % per cluster on a monthly

    basis. The details of difficult cluster are in schedule 3 of the document (TO BE SUPPLIED BY ALL

    THE USPs LATEST BY 31ST MAY 2008).

    6. IP shall carry out Periodic checks as per schedule for operation andmaintenance of all installations done by IP such as

    Tower & premises Painting, maintenance etc. Engine Alternator Electrical Installations Earthing Lightening Arrestors

    IP shall not be responsible for operation & maintenance of any installations done by USPs.

    7. Causes of downtime

    Causes of downtime include but are not limited to

    AC Main Power outages Power Backup outages (DG failure only , does not include Battery Bank) Tower Earthing failure

    8. Determination of Down Time

    a. Down Time: Period during which Power from either of the two EB or DG is not available.

    The Down Time shall be calculated on a monthly basis based on formulae mentioned below:

    `Downtime Availability = 100 X {(No. of sites in the cluster X Number of Hours in the month)

    Cumulative Downtime in Hours of all Sites in the Cluster)}/ (No. of Sites in the cluster X

    Number of Hours in the Month)

    After continuous availability of EB/DG supply for 8hours, the battery shall be in a fully charged

    condition. Subsequent to this condition, if EB supply is off than battery should work for at

    least 4 hours continuously. If during this period the battery of any of the USP does not last for

    4 hours and the DG also fails to start than this period of up to 4 hours shall not be treated as

    downtime.

    Such instances shall be computed on a monthly basis and deducted from The total downtime

    of the month.

    b. Planned outages shall not form a part of the downtime calculations.

    c. Power outages which have resulted into mobile service discontinuity shall be considered for

    downtime calculations.

    8.1 Penalty due to downtime for sites in normal clusters

    Penalty due to downtime shall be calculated as per the downtime defined in clause 8.

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    Up time up to 98% or above - No penalty

    Up time from 90% to 98% - Penalty equivalent to 3% of monthly fixed maintenance cost.

    Up time from 85% to 90% - Penalty equivalent to 5% of monthly fixed maintenance cost.

    Up time below 85% - Penalty equivalent to 10% of monthly fixed maintenance cost.

    However total penalty on a site for a month shall not more than 10% of the monthly fixed

    maintenance cost as defined in Schedule I

    8.2 Penalty due to downtime for sites in difficult clusters

    Penalty due to downtime shall be calculated as per the downtime defined in clause 8.

    Up time up to 95% or above - No penalty

    Up time from 90% to 95% - Penalty equivalent to 3% of monthly fixed maintenance cost.

    Up time from 85% to 90% - Penalty equivalent to 5% of monthly fixed maintenance cost.

    Up time below 85% - Penalty equivalent to 10% of monthly fixed maintenance cost.

    However total penalty on a site for a month shall not more than 10% of the monthly fixed

    maintenance cost as defined in schedule 1

    9. Entry and inspection by IP/ USP

    The following provisions shall govern access to the Site:

    a. For Installation and Routine Maintenance:

    Access for installation, routine maintenance and repair and other nonemergency visits shall be

    permitted, as per IP/ USPs requirements.

    b.For Emergency:

    In the event emergency repairs or maintenance is required to the USPs communications

    facility, the USP is entitled to access the Site twenty-four (24) hours per day, seven (7) days

    per week to perform such emergency repairs or maintenance, provided that the IP is

    immediately notified in order to coordinate any emergency repairs to the USPs equipment at

    the site. In such event of emergency, the USP shall however, make detailed entries in the

    logbook kept for the purpose at the Site.

    10. Procedure of Fault booking

    Incase of EB failure or DG operation failure, USPs OMCR shall intimate IPs field engineer. IPs

    field engineer shall respond as per the agreed timelines.

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    11. Good Phase Selector

    The IP shall try to get approval of good phase selector from respective State electricity board

    (SEB). If the same is allowed by SEB than in that case IP shall install good phase selector at the

    site. All the capex incurred towards good phase selector installation & procurement shall be

    borne by all the USPs. Installation of good phase selector should not be linked to the

    commissioning of the site.

    12. Fixed Maintenance Charges, Recurring Operating Expenses and Advance

    a. The USP shall pay the IP Fixed maintenance as well as recurring Operating expenses as

    defined in Schedule I.

    b. An advance equivalent to one months fuel and electricity charges shall be paid by the USP

    to the IP. The amount of the same shall be estimated and mutually agreed between theparties. The same shall be adjusted against the invoices for the last month of the

    agreement.

    13. Payment terms and conditions

    a. The Infrastructure provider shall raise invoices / debit notes on the USP as described in

    Schedule II.

    b. The USP shall pay the invoices as per the timelines described in Schedule II.

    c. Taxes and Duties:

    The aforesaid Fees shall be exclusive of all taxes, duties, charges, cesses and others such as

    Service Tax, Value added tax or any other state/central or local levy/tax etc.. All taxes in

    connection with the proposed transaction, present and future, except tax on the income

    of the IP shall be borne by the USP.

    d. No Set off:

    The Fees to be paid by the USP shall not be entitled to be set-off or compensated against

    any other amount due from the IP.

    14. Termination of the Agreement

    a. This agreement shall be effective from the date of signature and shall be in force for a

    period of 5 years, from the date of radiation from site by USP or 2 months from the date

    of readiness of the site by IP, whichever is earlier unless otherwise terminated as stated

    herein. This agreement can be renewed for a further period or periods on mutually

    agreeable terms, to be finalized at least one quarter in advance before expiry of this

    agreement.

    b. The terms and conditions of this Agreement shall be applicable and valid in respect of

    Infrastructure Support Service for each Site initially for a period of Five (5) years ("Term")

    from the Commencement date during the subsistence of this agreement.

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    Either Party can terminate the Agreement without incurring liability

    i. With immediate effect in the case of insolvency or bankruptcy or appointment of

    receivership proceedings against the other party.

    ii. If, within thirty (30) days of sending a registered letter reporting a breach, the party in

    breach, does not fulfill its obligations by remedying the breach immediately after the said

    period of thirty (30) days.

    iii. With immediate effect if the license/permission/approval granted to the other party by

    DoT or any other government agency is cancelled, terminated or withdrawn or in the

    event of the business Operations of the USP affected by virtue of the directions or Orders

    of regulatory or Licensing authorities.

    iv. Upon Occurrence of force majeure event as stated herein.

    c. Termination of this agreement for any cause shall not release either party hereto from anyliability, which at the time of termination has already occurred to the other party or which

    hereafter may occur in respect of any act or omission prior to termination.

    d. Upon the expiration or earlier termination of this Agreement for any reason whatsoever, the IP

    shall remove the equipment, etc. installed from the relevant infrastructure site, and USP shall

    not create any hindrance in returning / removing the said infrastructure from the site.

    15. Notice

    a. Notices shall be in writing and shall be sent to the other party marked for the attention ofthe person at the address set out below. Notices may be delivered by hand or sent by first-

    class mail or by email or facsimile transmission provided that facsimile transmissions are

    confirmed within 24 (twenty-four) hours by first-class mail confirmation of a copy or by email.

    Correctly addressed notices sent by first-class mail shall be deemed to have been delivered 72

    (seventy-two) hours after posting, and notices delivered by hand and correctly directed

    facsimile transmissions shall be deemed to have been delivered on the next working day after

    transmission provided that they are confirmed as set out above.

    If to Universal Service Provider: If to Infrastructure Provider :

    Name: Name:

    Address: Address:

    Fax No: +91- Fax No:

    Email: Email:

    b. Any alteration or change in the addresses of each of the Parties hereto shall be notified in writing

    to the other Party hereto without undue delay.

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    16. Representations And Warranties

    a.USP hereby represents and warrants to Infrastructure Provider that:i. it has all the requisite consents, licenses and permissions to (i) enter into this Agreement;

    and (ii) carry out the obligations set out in this Agreement and it shall keep all such

    consents,licenses and permissions renewed and valid at all times during the continuance of

    the Agreement;

    ii. it shall maintain the Passive Telecom Infrastructure at all times in proper functional state

    duly equipped with necessary infrastructure, resources and facilities as may be required for

    carrying out its obligation under this Agreement; and

    iii. it shall comply with all statutory requirements as may be required under laws, rules and

    regulations (including any order/notification of any authority/court/tribunal etc.) in respect

    of its employees/staff and as may be applicable to perform its obligations under thisAgreement, Infrastructure Provider shall keep USP indemnified and harmless at all times

    against any or all claims, actions, proceedings, inquires (including any cost, expenses, loss,

    damages or consequences thereof) from or by any third party.

    b.Infrastructure Provider hereby represents and warrants to USP that:i. it has all the requisite consents, licenses and permissions to (i) enter into this Agreement;

    and (ii) carry out the obligations set out in this Agreement and it shall keep all such

    consents, licenses and permissions renewed and valid at all times during the continuance of

    the Agreement;

    ii. the Services rendered hereunder shall not violate any law, rules, regulations or any order of

    government or any Authority nor shall be inconsistent with any instrument and/ or

    document executed by Infrastructure Provider or in which Infrastructure Provider is a Party

    whether directly or indirectly;

    iii. it shall comply with all statutory requirements as may be required under laws, rules and

    regulations (including any order/notification of any authority/court/tribunal etc.) in respect

    of its employees/staff and as may be applicable to perform its obligations under this

    Agreement, Infrastructure Provider shall keep USP indemnified and harmless at all times

    against any or all claims, actions, proceedings, inquires (including any cost, expenses, loss,

    damages or consequences thereof) from or by any third party.

    17. Indemnification

    Infrastructure Provider agrees to defend, indemnify and keep USP indemnified and harmless

    at all times, from and against any and all claims, demands, damages, assertions of liability

    whether civil, criminal, tortuous or of any nature whatsoever, arising out of or pertaining to or

    resulting from any breach of representations and warranties made by the Infrastructure

    Provider and/or breach of any provisions of this Agreement, including but not limited to any

    claim from third party pursuant to any act or omission of the Infrastructure Provider in the

    course of discharge of its obligations under this Agreement.

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    18. Limitation Of Liability

    Neither Party will be liable to the other for any lost revenue, lost profits or other incidental or

    consequential damages based on any breach or default under this Agreement. Each Partys

    aggregate liability including any liability of its parent company, subsidiaries, affiliated,

    employees, agents and assigns for all events under this Agreement, whether arising from

    breach of contract, negligence or otherwise shall not exceed the aggregate amount of charges

    paid or payable by USP to Infrastructure Provider in respect of the Services provided during

    the six (6) months prior to the occurrence of the event in question. In the event the breach of

    contract occurs on or before six (6) months of the Effective Date the average monthly billings

    for the period of operation till the date of breach will be extrapolated to arrive at the six (6)

    months billing figure.

    19. Miscellaneous

    a. Entire AgreementThis Agreement constitutes the entire agreement and understanding between the Parties, and

    supersedes all offers, negotiations and other agreements concerning the subject matter

    contained in this Agreement. There are no representations or understandings of any kind not

    set forth in this Agreement. Any amendments to this Agreement must be in writing and

    executed by both the Parties.

    b. SeverabilityIf any provision of this Agreement is invalid or unenforceable with respect to a Party, the

    remainder of this Agreement, or the application of such provision to persons other than thoseas to whom it is held invalid or unenforceable, is not to be affected and each provision of this

    Agreement is valid and enforceable to the fullest extent permitted by law.

    c. Binding EffectThis Agreement will be binding on and inure to the benefit of the respective parties'

    successors and permitted assignees.

    d. CaptionsThe captions of this Agreement are inserted for convenience only and are not to be construed

    as part of this Agreement or in any way limiting the scope or intent of its provision.

    e. No WaiverNo provision of this Agreement will be deemed to have been waived by either party unless

    the waiver is in writing and signed by the party against whom enforcement is attempted. No

    custom or practice which may develop between the parties in the administration of the terms

    of this Agreement is to be construed to waive or lessen any party's right to insist upon strict

    performance of the terms of this Agreement. The rights granted in this Agreement is

    cumulative of every other right or remedy that the enforcing party may otherwise have at law

    or in equity or by statute and the exercise of one or more rights or remedies will not prejudice

    or impair the concurrent or subsequent exercise of other rights or remedies.

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    f. No LiensAt no point of time shall USP have / deem to have any right, lien, interest, charge etc. on any

    of the Proprietary Information/ documents/ records /equipment received/ all passive

    infrastructure from IP or those meant for IP as per this Agreement, for any reasonwhatsoever. It is understood that IP shall have ownership of the same at all times and USP

    shall be a trustee of the same and same shall remain properties of IP.

    g. Force MajeureNotwithstanding anything to the contrary herein contained, neither party shall be liable or

    responsible for failure or delay in performance of its obligations hereunder, it if is prevented

    from discharging hereunder due to any cause arising out of or related to any act of God or act

    of state, war, riot, civil commotion, terrorism, strikes, lock-outs or any order of any

    Governmental, semi-governmental or local authority or any similar cause.

    h. Non ExclusiveThe Parties agree that this agreement shall be entered into between the parties on non-

    exclusive basis and that the parties may be free to enter into any such agreements with other

    USPs /Infrastructure Providers within the Territory.

    i. SurvivalIn the event of expiration or termination of this Agreement, the provisions contained with

    regard to Representation & Warrantees, Indemnification, Confidentiality and

    Limitation of Liability, shall survive and continue in effect and shall insure to the benefit ofand be binding upon both the Parties and their legal representatives, heirs, successors and

    assigns or permitted assigns.

    20. Dispute Resolution

    a. In the event any disputes, differences or controversies should arise between the Parties

    hereto, out of or in connection with the provisions of this Agreement, or any action taken

    hereunder, the Parties hereto shall thoroughly explore all possibilities for an amicable

    settlement. In case amicable settlement cannot be reached, such disputes, differences or

    controversies shall be referred to arbitration in accordance with the provisions of the

    Arbitration and Conciliation Act, 1996 including any amendment or re-enactment thereof.

    The number of Arbitrators shall be three, with each Party entitled to appoint one

    arbitrator. The two arbitrators so appointed shall appoint a third arbitrator who shall act

    as chairman of the arbitration proceedings.

    b. The proceedings of such arbitration shall be conducted in English language and the venue

    of such arbitration shall be at Mumbai / Delhi / State capitals of the concerned site.

    c. The award of such arbitration shall be final and binding upon the Parties hereto.

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    21. Jurisdiction

    This Agreement shall be governed in accordance with the laws of India. This Agreement is

    subject of the exclusive jurisdiction of courts at Mumbai / Delhi / State capital of the

    concerned site.

    22. Finality

    This Agreement is the final, entire and sole repository of terms and conditions mentioned

    herein and all earlier agreements, arrangements, letters correspondence, understandings etc.

    with respect to the subject matter of this Agreement stand terminated with effect from the

    date of execution of the present Agreement. Any and/or all Annexure/s to this Agreement

    form(s) integral part of this Agreement.

    IN WITNESS WHEREOF THE PARTIES HERETO HAVE CAUSED THIS AGREEMENT TO BE EXECUTED

    THROUGH THEIR RESPECTIVE AUTHORIZED REPRESENTATIVES ON THE DAY AND YEAR FIRST ABOVE

    WRITTEN.

    Signed and delivered for and on behalf ofM/s Bharat Sanchar Nigam LTD.

    By:

    DDG(CIVIL) BSNL C.O.

    Signed on behalf ofM/s .

    By:

    Authorised Signatory

    In the presence of:

    Witness:

    1. _____________________2. _____________________

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    Schedule I

    Fixed Maintenance Charges and Recurring Operating Expenses forNormal Clusters

    a. Fixed Maintenance Charges for a site with single DG set.: The charges are arrived at

    assuming every site will be shared by 3 users, In case the number of USPs sharing the site is

    less than 3, then prorata change in fees for that particular site shall be applicable as

    mentioned below :

    i) Fixed Maintenance Charges Rs 5000 per user per month. The fixed maintenance

    charges are calculated based on the assumption that there are at least 3 users on each

    site.

    ii) The fixed maintenance charges for Single user and two user sites is as mentioned

    belowSingle User Site charges Rs 15,000 per user per month

    Two User Site charges Rs 7,500 per user per month

    The above Charges does not include charges towards maintenance of Tower i.e. painting ,

    tightening of nut bolts ,painting & civil maintenance of security hut, boundary wall of

    compound and internal premises, top over haul ( after every 7000 hours of DG usage) &

    major over haul ( after every 10,000 hours of DG usage) of the DG set etc. The same shall be

    paid by the USPs at actual. Anything not mentioned in the scope of work in this agreement

    but is required shall be charged as per actual.

    Escalation: The charges shown above are based on the current cost and shall be fixed for 1year where after the same shall be subject to escalation of 10% year over year.

    Taxes & duties shall be extra as applicable.

    b. Fixed Maintenance Charges for a site with Two DG sets ( site without EB supply).:The charges are arrived at assuming every site will be shared by 3 users, In case the number of

    USPs sharing the site is less than 3, then prorata change in fees for that particular site shall be

    applicable as mentioned below :

    i) Fixed Maintenance Charges Rs. 5,835 per user per month The fixed maintenance chargesare calculated based on the assumption that there are at least 3 users on each site.

    ii) The fixed maintenance charges for Single user and two user sites is as mentioned belowSingle User Site charges Rs. 17,500 per user per month

    Two User Site charges Rs. 8,750 per user per month

    The above Charges does not include charges towards maintenance of Tower i.e. painting ,

    tightening of nut bolts ,painting & civil maintenance of security hut, boundary wall of

    compound and internal premises, top over haul ( after every 7000 hours of DG usage) &

    major over haul ( after every 10,000 hours of DG usage) of the DG set etc. The same shall be

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    paid by the USPs at actual. Anything not mentioned in the scope of work in this agreement

    but is required shall be charged as per actual.

    Escalation: The charges shown above are based on the current cost and shall be fixed for 1

    year where after the same shall be subject to escalation of 10% year over year.

    Taxes & duties shall be extra as applicable.

    All the charges mentioned above shall be paid by USPs from the date of commencement of

    services. Till two months from the site readiness the complete charges shall be borne by the

    USPs who had started radiating from the site. However After two months from the site

    readiness, charges shall be borne equally by all the three USPs regardless whether they start

    radiating from that site or not

    c. Recurring Operating Expensesj. Reimbursements and Charges:

    a. Electricity Charges:

    The electricity charges in respect of consumption of electricity at the site shall be

    reimbursed by the USP in proportion to the power consumption attributable to the USP.

    The parties shall, depending on the proposed power usage of the USP, estimate the

    electricity charges in respect of each site and the USP shall pay such estimated amount for

    every month in advance to the IP. The estimated amount for the same is Rs 5760 per

    month per USP.

    The IP thereafter, upon receipt of the electricity bills shall pay the same to the authorities.

    The IP shall raise the debit/credit note based on actual electricity consumption along with

    necessary supporting with the USP and the parties shall reconcile and settle the account

    on quarterly basis. The USP hereby recognizes that the IP would be paying the said

    electricity bills only on behalf of the USP purely to facilitate convenience and the liability

    of the USP for reimbursing the IP for the same is unconditional and irrevocable.

    Electricity charges for common meter for upkeep of site, eg compound light, security

    cabin, charger facility etc shall be equally distributed among all the USPs.

    The Parties shall review the estimated amount from time to time and revise the same

    depending on the electricity consumption pattern and / or change in the electricity tariffs.

    Formulae for EB charging methodologyConsumption per hour of the DG set (CPH) = 3.5 liters/ hour*

    Total consumption of liters of diesel in a month at the site = P

    Ratio of energy usage for an individual USP = R

    R = No. of units of energy (EB + DG) consumed by an individual

    USP in a month / total no. of units of energy (EB + DG) consumed

    at the site in a month

    Total no. of hours of DG usage at a site = S

    P = CPH * S

    Total no. of liters of diesel attributable to an individual USP in

    a month = P * Rb. Diesel Charges:

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    The diesel charges in respect of usage of the diesel generator set at the Site shall bereimbursed by the USP in proportion to the diesel consumption attributable to the USP. The

    formulae for diesel charging methodology is mentioned below. The Parties shall, depending

    on the proposed power usage of the USP, estimate the diesel charges in respect of each Siteand the USP shall pay such estimated amount for every month in advance to the IP. The

    estimated amount for the same is Rs 14700/- per month per USP. The IP shall pay for the

    diesel charged for the month for each site. The IP shall raise the debit/credit note along with

    necessary supporting with the USP and the Parties shall reconcile and settle the account on

    quarterly basis. (Only no. of run hours shall be reconciled, as CPH as derived in schedule I is

    fixed).

    Formulae for the diesel charging methodology

    Consumption per hour of the DG set (CPH) = 3.5 liters/ hour*

    Total consumption of liters of diesel in a month at the site = PRatio of energy usage for an individual USP = R

    R = No. of units of energy (EB + DG) consumed by an individual

    USP in a month / total no. of units of energy (EB + DG) consumed

    at the site in a month

    Total no. of hours of DG usage at a site = S

    P = CPH * S

    Total no. of liters of diesel attributable to an individual USP in

    a month = P * R

    The actual consumption per hour of the DG set (CPH) shall be calculated, at different loads(4KW, 6KW, 8KW, 10KW, 12KW & 15KW) as per the test to be conducted at three different

    sites (Reliance installation at Kerala, GTL installation at UP-East & BSNL installation at MP)

    on 5th June 2008. While testing on different load, one test shall be done on actual non

    linear load of that capacity and the same test (i.e. on same load) shall be repeated on

    resistive load of same capacity, the difference in fuel consumption for the two tests (in

    terms of percentage) shall be added to the fuel consumption measured in all other tests to

    be conducted ondifferent resistive loads.

    All the IPs and USPs shall be intimated by email to witness the test. 7.5% of actualconsumption shall be added for pilferage / wastage/ leakage/ theft etc for calculating the

    CPH. The CPH &different loads are as per below mentioned table.

    No ofUSPs at

    site

    Total load Actual CPHas test result

    Pilferagesfactor

    Total &Final CPH of

    DG set

    3 8KW X 7.5% X+7.5%

    2 6KW Y 7.5% Y+7.5%

    1 4KW Z 7.5% Z+7.5%

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    The CPH assigned above shall be fixed for first three years or till the total is within the limits

    as mentioned above. Upon completion of 03 year period, similar test shall be conducted at 3

    sites and revised CPH shall be calculated on above principle and the same shall be applicable

    thereafter. This is to account for change in fuel consumptiondue to ageing factor.

    The USP should intimate any increase in electrical load (beyond above figures) to IP.

    Consequent upon any increase in load, the CPH shall be recalculated corresponding to the

    increased load on every suchoccasion.

    Taxes & duties shall be extra as applicable

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    Schedule II

    Payment Schedule

    Sr.No.

    Description offees

    Invoicing schedule Payment timeline

    1 Re-imbursement of

    Electricity and diesel

    consumption charges

    For estimated amount in respect of each site

    to be raised in advance on 15th day of

    previous month for the next month

    Payment within 15 days

    of receipt of invoices

    2 Fixed Maintenance

    Charges

    For Agreed amount in respect of each site to

    be raised in advance on 15th day of previous

    month for the next month

    Payment within 15 days

    of receipt of invoices

    Late Fees Charges:

    USPs shall be liable to pay interest at 2% per month for the period of default, if any Fee or otheramount payable to Infrastructure provider under this Agreement which is not paid as per

    payment timelines mentioned above

    Procedure for Payment of Fixed Maintenance Charges:

    IP shall raise the invoice as per the amount mentioned in Schedule I.

    This payment shall be made monthly in advance.

    IP shall raise the invoice on 15th of each month for the next month. USPs shall make the

    payment to IP with in 15 days of receipt of such invoices.

    Procedure for Payment of rolling advance towards Energy cost (diesel +EBcharges):

    IP shall raise the invoice as per current amount fixed for rolling advance till 8th month from the

    date of commencement. However 5th month payment shall be released by USP only when the

    reconciliation of first 3 months is done i.e. debit/credit note is given to the USP. Similarly

    payment for 8th month shall be made by USP only when reconciliation till 6th month is done i.e.

    debit/credit note is given to the USPs. (Only no. of run hours shall be reconciled, as CPH as

    derived in schedule I is fixed). And the same process will go on for entire contract period.

    This payment shall be made monthly in advance.

    IP shall raise the invoice on 15th of each month for the next month. USPs shall make the

    payment to IP with in 15 days of receipt of such invoices.

    Determination of Rolling Advance towards Energy cost (Diesel + EB charges):

    The current Rolling advance is Rs 20,600 per site per month per USP. This amount shall be

    applicable till 8th month from the date of commencement of service.

    From 9th month to 14th month the rolling advance shall be the average of the actual amount

    during the first six months (only number of run hours shall be reconciled, as CPH as derived in

    schedule I is fixed)

    From 15th month till the end of the contract period rolling advance shall be the average of

    actual amount during the first 12 months from the date of commencement of services.

    (Only no. of run hours shall be reconciled, as CPH as derived in schedule I is fixed.