Government of India

Ministry of Power

NOTE FOR CONSIDERATION

OF

PUBLIC INVESTMENT BOARD (PIB)

ON

REVISED COST ESTIMATE ( AT COMPLETION )

OF

SEWA-II HYDRO-ELECTRIC PROJECT (120 MW),

JAMMU & KASHMIR

EXECUTED BY NHPC LIMITED

Checklist for the EFC/PIB Memo

Particulars Indicate Y or N

Whether proposal has been prepared in the prescribed EFC/PIB format. YES

Whether an Executive Summary has been attached. YES

Whether In-Principle approval of the NITI Aayog has been taken and funding tied up. N.A

Whether comments of Financial Advisor/IFD have been attached with the EFC/PIB Memo Yes, at para 9.1

Whether Evaluation Report if any has been attached with the EFC/PIB Memo N.A

Whether Feasibility Report , If any , has been attached with the EFC/PIB Memo N.A

Whether mandatory clearances/approvals,have been obtained. YES

Whether a soft copy of the EFC/PIB Memo has been attached. YES

EXECUTIVE SUMMARY SEWA-II H.E. PROJECT, (120 MW), J&K

1.0 Background

Sewa-II H.E. Project is a run of river scheme located on river Sewa in Kathua district, of Jammu and Kashmir. GOI accorded Sanction for execution of the project at a cost of Rs.665.46 crore at September 2002 price level. The scheduled date of completion of the Project was 08.09.2007. The project has been completed on dated 24.07.2010 & is under commercial operation since then. The RCE at completion cost worked out to Rs. 1108.82 crore.

2.0 Cost & Time Overrun The project has incurred a cost overrun of Rs 443.36 crore and a time overrun of 34 months &16 days.

3.0 Observations Of Standing Committee On Time & Cost Overrun • The project has been declared to be under commercial operation w.e.f. 24.07.2010. It

has generated 2543.01 MUs worth Rs. 1175.49 crore till 31st Oct’ 2015

• The Committee noted that the Revised Cost ( at completion cost) of the Project is Rs. 1108.82 crore, which implies an excess cost of Rs. 443.36 crore i.e. 66.62% of sanctioned cost of Rs. 665.46 crore. The cost overrun excluding Price Escalation (PE), Statutory Levies (SLV) and ERV, within the original approved time cycle works out (total excess cost of Rs 443.36 crores) to Rs.388.65 Crore which is 58.40 % higher than the sanctioned cost. The Committee has also observed that in the total cost overrun of the project, an increase of Rs. 245.14 crore is due to fiscal factors and the consequential increase in IDC & FC whereas project cost has increased by Rs.198.23 crore due to other physical factors e.g. addition / deletion, quantity variation and over/under-estimation etc, during execution besides establishment which are explained in the report.

• The Committee noted that the time overrun of 34 months & 16 days has resulted in an increase of Rs.170.81 crore which is due to fiscal factors and consequential increase in Interest During Construction (IDC) and Financing Charges (FC). The Committee noted that the time overrun of 34 months & 16 days was due to hindrances such as geological, law and order etc. which were found convincing by the Committee.

• On examining the reasons of cost and time overrun, the committee is of the considered opinion that reasons for cost and time over-run were beyond the control of any agency or person, hence no individual /agency can be held responsible for the same.

4.0 Employment Potential Generation Following table indicate the employment generated during construction and ongoing operation of the project.

S.No. Description During Construction

phase

During Operation phase

1 Direct Employment NHPC & J&K 457 366

2 Indirect Employment Labour engaged by contractors 1150 280

3 Induced Employment (due to use of electricity generated by the project in the industry)

Employment generated through various industries / sectors involved in the development of project

- There shall be a significant employment through induced effects, in the areas where electricity generated from the project shall be used for industrial and commercial purposes.

5.0 Recommendation of Standing Committee on Time & Cost Overrun

The Standing Committee recommended the Revised Cost of Sewa-II HE Project amounting to Rs.1108.82 crore including IDC & FC amounting to Rs.149.55 crore at completion with time overrun of 34 months & 16 days for consideration of the PIB

6.0 Proposed Funding Pattern The debt equity ratio of 70:30 is as per CERC guidelines.

7.0 Recommending Authority

Public Investment Board.

8.0 Approval Required Recommendation of Public Investment Board is solicited for approval of the Revised Cost Estimate of Sewa-II HE Project amounting to Rs 1108.82 crore including IDC & FC of Rs 149.55 crore at completion but excluding contingent liabilities.

Point No Item Details Page No.

1 Project Outline 1-4

2 Outcomes and Deliverables 4-5

3 Project Cost 5-7

4 Project Finance 7-8

5 Project Viability 7-8

6 Approvals and Clearance 9

7 Human Resources 9-10

8 Monitoring and Evaluation 10-11

9 Comments 11-13

10 Approval Sought 13

Annex 1

Annex 1A

Annex 2

Annex 3

Annex 4

Annex 5

Annex 6

Annex 7

INDEX

Report of Standing Committee

Power Allocation Letter

Action Taken Report

EIRR at Sanctioned Cost & Completion Cost

Tariff Calculation at Sanctioned Cost

Tariff Calculation at Completion Cost

FIRR at Sanctioned Cost & Completion Cost

LIST OF ANNEXURES

Contingent Liabilities as on 30.06.2016

15Jan1604:59 mop

• • --No.2/1 /2015-NHPC . Government of India

Ministry of Power

23324357

Shram Shakti Bhawan, Rafi Marg, New Delhi - 110001 Telephone No. 23324357; Fax No. 2371 7519

Chairman & Managing Director NHPC Ltd., Faridabad

Dated: I <;'.1.2016

Kind Attn: Shri A.K. Sarkar, Executive Director (Planning).

p. 1

Sub: Reports of Standing Committee for fixing responsibility on time··& cost overrun in respect of Uri-II HEP and Sewa-11 in J&K, executed by NHPC Limited.

Sir,

I am directed to refer to this Ministry's letter of even number dated 8.12.2015 circulating the minutes of the 4h meeting held on 1.12.2015 I in respect of Standing Committee on time & cost over-run for fixing the responsibility for delay in commissioning of Uri-II HEP and Sewa-11 in J&K, executed by NHPC Limited.

2. In th!s regard, a copy of each Report_ of the St~ndin.g cotmittee d~ly signed by all concerned m respect of both the above mentiui1ed projects 1s enclosed. It 1s requested that the Action Taken Report on the recommendations I suggestiorls made by' the Standing Committee may please be sent to this Ministry imrriediately. It ib also requested that the material for preparation of draft PIS memo for RCE o these projects may also be sent to this Ministry for consideration of the PIS.

" Copy for information to :

·. '.Rawat) Under Secretary to the Gm7ernment of India

Tel. No.23324357

1. Chief Adviser (Costs), Ministry of Finance (Deptt of Expenditure) Room No.207, 2nd

Floor, C Wing, Loknayak Bhawan, New Delhi. 2. Joint Adviser (Energy), NITI Aayog, Sansad Marg New Delhi-i 10001. 3. Director, Ministry of Statistics & Prog·ramme Inn\ piementation, Sardar P;itel

Sansad Marg, New Delhi-110001. · 4. Member (HE), CEA, RK. Puram, New Delhi-11006\6. 5. CMO, NHPC ltd., Sector-33, Faridabad. 6. JS & FA, Ministry of Power. !

Copy to:

PPS to AS(BPP)/PPS to JS (H)/Director (H-11), Ministry of Power.

-----~---------------·--···-·

Government of India

Ministry of Power

REPORT OF STANDING COMMITTEE FOR

FIXING RESPONSIBILITY FOR TIME & COST

OVERRUN IN RESPECT OF

SEWA-II HYDROELECTRIC PROJECT (120 MW) IN

JAMMU & KASHMIR EXECUTED BY NHPC LIMITED

1

REPORT OF STANDING COMMITTEE FOR FIXING RESPONSIBILITY FOR TIME &COST OVERRUN IN RESPECT OF SEWA–II HE PROJECT (120 MW) IN, J&K.

1.0 INTRODUCTION

1.1 The Standing Committee for fixing responsibility for time & cost overrun has been reconstituted vide Ministry of Power Order No.14/1/2013-Fin dated 31.08.2015 as under:-

Shri B.P.Pandey - Chairperson Additional Secretary (Ministry of Power)

Joint Secretary of Wing Concerned - Member

Representative of NITI Aayog - Member

Representative of Department of Expenditure - Member

Representative of Ministry of - Member Programme Implementation.

JS&FA (Power)/ Representative of IF Division - Special Invitee

1.2 Paragraph 10.3 of Ministry of Finance (MoF) O.M No.1 (3)/PF-II/2001 dt.15.11.2007 inter alia reads as under

“It is proposed to be clarified that no RCE case will be considered by EFC/PIB

unless the report of the Standing Committee and action taken there upon is appended to the PIB / EFC Memo”.

1.3 Investment approval for execution of Sewa-ll HE Project (3x40 MW), at an estimated

cost of Rs.665.46 crore including IDC of Rs.68.42 crore at Sept.2002 price level with

a commissioning schedule of 4 years from the date of Government Sanction (i.e.

by 08.09.2007) was conveyed vide letter No.26/1/2002-DO-NHPC dated 09.09.2003 (Annex-A). However, the Project has been commissioned on 24.07.2010 and it has

generated 2543.01 MUs worth Rs.1175.49 crore till 31.10.2015.

1.4 Interim Revised Cost Estimates (RCE) amounting to Rs.1018.98 crore at February,

2009 Price Level with a cost overrun of Rs.353.54 crore was submitted by NHPC to

MOP/CEA vide letter dated 22.06.2009. While the RCE was under examination at

CEA/CWC, the Project got commissioned in July 2010. Accordingly, the Revised

2

Cost Estimate (RCE) at completion amounting to Rs 1108.82 crore including IDC&

FC of Rs 149.55 crore (Excluding contingent liabilities amounting to Rs 102.75 crore, Annex-B) was reframed and submitted to CEA in December 2010(Annex-C).

The said RCE at completion cost was returned by CEA vide letter dated 27.09.2012 (Annex-D) with the remarks that the RCE of Sewa-II HEP may be treated as

returned being old (July 2010 P.L) as the examination of the RCE at July 2010 P.L

in CEA/CWC would not be fruitful.

1.5 NHPC vide letter dated 22.10.2012 (Annex-E.) clarified that the RCE at July 2010

P.L. under examination in the CEA was corresponding to the completion cost only &

has been prepared after the completion of the project. Accordingly, CEA was

requested to continue the process of the examination and vetting of the RCE of

Sewa-II HE project at the earliest.

1.6 CEA vide letter No.203/4/2015-HPA/389-90 dated 25.02.2015 (Annex-F) has

examined the RCE at completion cost amounting to Rs 1108.82 crore including IDC

& FC of Rs 149.55 Crore and communicated clearance from design aspects of the

proposal submitted by NHPC.

1.7 NHPC vide letter no NH/PD/PC/Sewa-II/429 dated 09.03.2015(Annex-G) has

submitted the said proposal along with the background note for the consideration of

the Standing Committee. The Project has involved a cost overrun of Rs. 443.36

crore and a time overrun of 34 months & 16 days.

1.8 The Standing Committee deliberated the subject matter in its meetings held on

19.03.2015,15.04.2015, 29.07.2015 & 01.12.2015 and examined the reasons for

time and cost overrun and fixing the responsibility, if any, for delay in

commissioning of Sewa-II HE Project (120 MW) in, J&K.

Detailed reasons for time overrun of 34 months & 16 days and cost overrun of

Rs.443.36 crore were explained by NHPC in the meetings. The queries raised by

the members of the committee were also replied by NHPC, which stands recorded in the Minutes of meetings (Annex-H) and action taken reports (Annex-I).

3

1.9 As desired in the 3rd Standing Committee meeting, a draft report of the Standing

Committee was circulated to the Committee members and discussed in the 4th

Standing Committee meeting held on 01.12.2015. The comments of CEA and NITI

Ayog on the draft report of Standing Committee & the reply of the same by NHPC is placed at (Annex-IA).

2.0 ANALYSIS OF COST OVERRUN

Sanctioned Estimated Cost : Rs. 665.46 Crore (at September, 2002 PL).

Revised Cost at Completion : Rs. 1108.82 crore

Cost overrun : Rs. 443.36 crore Head wise sanctioned cost, completion cost and cost variation thereon is given below:

Rs. (in crore)

S.No. Description Sanctioned

Cost Sept 2002 P.L.

Completion Cost Variation %

Variation

A CIVIL WORKS

1 DIRECT CHARGES

I - WORKS

A - PRELIMINARY 6.82 8.14 1.32 19.36

B - LAND 5.14 13.26 8.12 157.95

C - WORKS 101.23 152.40 51.17 50.55

J - POWER PLANT CIVIL WORKS 218.09 275.98 57.89 26.54

K - BUILDINGS 15.93 23.85 7.92 49.71

O - MISCELLANEOUS 20.88 36.58 15.70 75.2

P - MAINTENANCE 3.66 12.88 9.22 251.91

Q-SPL. TOOLS & PLANTS 24.21 7.58 -16.63 -68.68

R - COMMUNICATION 30.60 33.57 2.97 9.72

X - ENVIRONMENT & ECOLOGY 11.99 10.96 -1.03 -8.58

Y - LOSSES ON STOCK 0.91 0.89 -0.90 -99.02

TOTAL OF I - WORKS 439.46 575.21 135.75 30.89

II - ESTABLISHMENT 46.36 179.69 133.33 287.6

III - TOOLS AND PLANTS 4.08 4.36 0.28 6.86

IV - SUSPENSE 0.00 0.00 0.00

V- RECEIPT & RECOVERIES -15.46 -13.88 1.58 -10.22

TOTAL DIRECT CHARGES 474.44 745.38 270.94 57.11

4

2 INDIRECT CHARGES

I - CAPITALISED VALUE OF ABATEMENT OF LANDREVENUE (5% OF COST OF CULTURABLE LAND)

0.00 0.00 0.00

II - AUDIT & ACCOUNTS CHARGES 4.08 10.01 5.93 145.34

(1% OF I - WORKS) 0.00 0.00 0.00 TOTAL INDIRECT CHARGES 4.08 10.01 5.93 145.34

TOTAL CIVIL COST 478.52 755.39 276.87 57.86

B ELECTRICAL WORKS

118.52 203.88 85.36 72.03

C. TOTAL NET COST WITHOUT IDC 597.04 959.27 362.24 60.67

D. IDC & FINANCING CHARGES 68.42 149.55 81.13 102.25

E. TOTAL NET COST WITH IDC 665.46 1108.82 443.36 66.62

2.1.1 The breakup of cost overrun of Rs.443.36Croreis given as under:- Rs. (in Crore)

*Variations in Quantities

a) Inadequate/Over Provision (Due to Qty) = Rs 59.61 Crore

b) Change in Scope/Design = Rs (-0.71) Crore

Total = Rs 58.90 Crore

Abstract of Cost vis-à-vis Revised Cost with prescribed variation heads at completion cost is also enclosed as Annex-J.

Variation Heads Cost Overrun

Increase in % of total sanctioned cost

Price Escalation(PE) 148.49 22.31 Exchange Rate Variation(ERV) 0.0 0.00 Statutory Levies(SLV) 15.52 2.33 Interest during Construction (IDC& FC) 81.13 12.19 Addition Deletion 40.91 6.14 * Variation in Quantities 58.90 8.85 Over/Under Estimation 98.41 14.78 Total 443.36 66.62

5

2.2 Reasons of Cost Overrun

The head wise reasons of Cost overrun were explained by NHPC during various

meetings which were examined by the Committee as described below:

Price Variation-There was an increase of Rs. 148.49Crore on account of Price

escalation which is about 22.31% of the sanctioned cost. Out of

Rs.148.49Crorearound Rs100.0 crore is due to the price escalation in major civil &

electrical works during construction period which has been worked out on the basis

of price escalation clauses of the respective contracts. The balance around Rs.

48.0 crore is due to the other heads i.e. increase in prices during construction of

infrastructure and R&M works of the project e.g. buildings, road, miscellaneous and establishment etc. The breakup of Rs. 148.49 crore is given as Annex-K.

The committee assessed the Price escalation vis-à-vis Whole Price indices

(WPI’s). It was observed by the committee that considering percentage increase in

the WPI’s from Sept 2002 (Year of Sanctioned Estimate) to July 2010 (Year of

Commissioning of project) of the main components like ferrous metal (137.57%),

labour, (69.92%), copper wire & bars (188.61%), steel (73.69%) & cement

(102.91%) the price escalation of Rs. 148.49 crore as claimed was in order.

Statutory Duties: Committee noted that, there was an increase of Rs.15.52 crore

which works out to 2.33% of the total sanctioned cost on account of statutory levies.

NHPC explained that the same was due to increase in WCT in the State of J&K

from 4.2% to 8.4% w.e.f. 01.04.2007 and 10.5% w.e.f. 01.04.2010. The breakup of Rs. 15.52 crore is enclosed as Annex-L.

Increase in IDC &FC: Committee noted that there was an increase of Rs. 81.13

Crore which works out to 12.19% of the total sanctioned cost.

NHPC explained that financing charges amounting to Rs. 1.85 crore were not

considered in the sanctioned cost. Increase is also due to increase in Const. period

and overall increase in cost of Project. Break up of Rs.81.13 Crore are enclosed as Annex-M.

6

Addition/deletion: Committee noted that, there is an increase of Rs40.91Crore

(6.14% of sanctioned cost) under this provision due to the increase in B-land

because of additional land requirement & compensation to State Forest Department

etc, due to increase in C-works, because of additional items e.g. bearing plates,

joint filler & ceiling compound, elastomer etc. which were not envisaged at the DPR

stage& due to additional provision in J-power plant because of rocker bearing, PU

grout & protection works of penstock area, etc. Also, increase in establishment has also been booked partially under this head. The break up is placed at Annex-N.

Quantity variation:

It was noted by the committee that there was an increase of Rs. 58.90 crore which

is mainly due to increase in K-buildings because of accommodation created for

CISF in view of prevailing law & order situation in J&K and due to increase in

O-Miscellaneous & P-Maintenance, because of additional construction period. Also

there is increase in establishment cost due to time overrun. The Breakup of

Rs.58.90 crore as furnished by NHPC is placed at Annex-O. Over/under estimation: Committee noted that there is an increase of Rs. 98.41

crore in the project cost mainly due to difference in sanctioned estimated rates and

awarded rates in E&M works, increase in establishment cost and increase in

O-miscellaneous.

Committee also observed that the electrical works contract was awarded after two

times bidding. The lowest bidder was M/s BHEL Ltd, a Government of India

Enterprise whose quoted rates were found justified during evaluation of tender in

view of abrupt increase in prices of copper wire bar & ferrous metals from

sanctioned estimate price level to the awarded date. The comparison of WPIs of materials of the relevant dates is placed at Annex-P. The breakup of Rs.98.41

crore is placed at Annex-Q.

Establishment: It was observed by the Committee that there was an overall

provision of Rs.46.36 crore in establishment in the sanctioned estimate against

which establishment cost works out to Rs.179.69 Crore in the completion cost

7

estimate and there is an increase of Rs.133.33 crore in the cost of establishment

which has been booked under different variation heads as explained in pre-paras.

NHPC explained that the provision for the establishment in the sanctioned estimate

was 6.5% based on CEA norms. However, establishment cost has increased

mainly due to prolonged completion period and increased project cost. The amount

of Rs. 179.69 crore (16% of the completion cost) on account of establishment in the

completion cost is based on actual deployment of man power by NHPC at site. It

was also explained by NHPC that the man power deployment in case of Sewa-II

Project was comparatively more being scattered project having a distance of 45 Km

(approx.) by road between Dam and Power house. Besides above the

establishment cost has also increased due to wage revision during construction

period of the project which was effective from 01.01.2007. In addition the

deployment of actual man power increased considerably due to time overrun of 34

months & 16 days which is around 70% of the scheduled construction period. Also

the establishment cost has increased due to inflation in prices in terms of increase

in D.A. Further, an expenditure upto zero date amounting to Rs. 10.69 crore has

been booked in the completion cost estimate, which was not there in the sanctioned

estimate but now allowed as per modified CEA norms as reads under:

“The likely increase in Establishment cost during the period of construction on

account of revision of pay scale, increase in DA, increment, etc. shall be allowed at

the time of RCE/ completion cost stage as per actual.”

Accordingly, based on above norms the actual cost of establishment of Rs. 179.69

crore has been booked in the RCE at completion, the breakup of which based on above justification is placed at Annex-R.

3.0 ANALYSIS OF TIME OVERRUN

Investment Sanctioned date : 09.09.2003 Scheduled Commissioning date : 08.09.2007

Scheduled Completion Period : 48 Months Actual Commissioning date : 24.07.2010 Actual Completion period : 82 months & 16 days Total Time overrun : 34 Months & 16 Days

8

3.1 Major Reasons for delay

Committee observed that various hindrances were faced during the execution of the

project i.e. washing out of approach road to Adit-III, agitation of Amarnath Sangharsh

Samiti, Civil disturbance in J&K, etc. The details of said hindrances along with the

consequential delay in the project works are given as under:

S. No. Description Months

1

a. Delay due to handing over of Adit–III access road for

mobilization (08.9.2003 to 03.01.2004).

b. Delay due to reconstruction of slided stretch of

access road from main principal road to Adit portal

(04.03.2004 to 23.06.2004).

7.5

2

Delay due to re-excavation of Adit-III due to collapse of

junction portion, due to adverse geology (24.12.04 to

17.04.2005).

3.5

3 Delay due to Washing out of approach road to Adit-III. 4

4

Delay due to Law & order problem like Amaranth

Sangharsh Samiti, Oil companies strike etc(27.1.04 to

29.1.04; 29.9.04; 26.12.05; 20.3.06; 26.4.06 to 28.4.06 ;

7.5.06 to 9.5.06; 20.5.06;11.6.06; 14.6.06; 24.6.06 to

26.6.06; 26.9.06; 27.9.06 to 3.10.06; 11.2.08 to 13.2.08;

22.3.08 to 23.3.08; 21.4.08 to 30.4.08; 1.5.08 to 21.5.08;

1.6.08 to 24.6.08; 1.8.08 to 27.10.08; 13.12.08 ; 5.1.09

to 13.1.09;24.4.09).

7

5

Delay due to Geological problems in Face-6 of Adit-III of

HRT due which additional rock supports were required

(18.04.2005 to 30.09.2005).

5.5

6

Delay due to Increase in scope like curtain grouting,

reinforcement and treatment of seepage area in over &

invert etc., in face 6 of HRT (22.07.2009 to 27.01.2010).

2.5

9

7

Delay due to Additional grouting in HRT after emptying

the tunnel, to control huge seepages in HRT(26.1.2010

to 05.02.2010 & 12.2.2010 to 31.5.2010).

2

8 Delay due to Concrete padding in invert, required

because of huge seepages (17.7.2008 to 20.9.2008). 2

9 Delay due to HRT refilling, testing & commissioning

(01.06.2010 to 07.07.2010). 1

Total

34 months & 16 days

3.2 COST OVERRUN WITHIN AND BEYOND APPROVED TIME CYCLE

The Committee has examined impact of 34 months& 16 Days delay in time overrun.

It has been noted that there was a total increase of Rs.170.81Croredue to the delay

which was on account of fiscal factors and consequential increase in IDC & FC

beyond approved project time cycle. The head wise cost overrun within and beyond

approved time cycle is given as under:

(Rs. in Crore.) Reason Within

Approved Time Cycle

Beyond Approved

Time Cycle

Increase

Price Escalation(PE) 52.87 95.62 148.49 Exchange Rate Variation(ERV) 0.0 0.0 0.0 Statutory Levies(SLV) 1.84 13.68 15.52 Interest during Construction (IDC) & Financing Charges(FC)

19.62 61.51 81.13

Other Variation Heads 198.23 0.00 198.23 Total 272.56 170.81 443.36

3.3 Monitoring mechanism

The Committee was informed that regular monitoring of the project works

throughout the construction period has been done through various progress review

meetings (PRMs) at project/ region/Corporate office level by NHPC, besides regular

10

Quarterly Progress Review meetings at MoP level. All the hindrances given above

stand discussed from time to time in the various Progress Review meetings held at

NHPC and also in Ministry of Power wherein the representative of CEA, MoSPI

etc. have been present. The representatives from CEA also visited the site from

time to time to monitor the progress of the works. The details of QPR’s held in MOP

are placed at Annex-S.

4.0 Observations of the Standing Committee.

1. The project has been declared to be under commercial operation w.e.f. 24.07.2010.

It has generated 2543.01 MUs worth Rs. 1175.49 crore till 31st Oct’ 2015

2. The Committee noted that the Revised Cost at (Completion Cost) of the Project is

Rs. 1108.82Crore, which implies an excess cost of Rs. 443.36 crore i.e. 66.62% of

sanctioned cost of Rs. 665.46 crore. The cost overrun excluding Price Escalation

(PE), Statutory Levies (SLV) and ERV, within the original approved time cycle

works out of total excess cost of Rs 443.36 crores out to Rs.388.65 Crore which is

58.40 % higher than the sanctioned cost. The Committee has also observed that in

the total cost overrun of the project, an increase of Rs. 245.14 crore due to fiscal

factors and the consequential increase in IDC & FC whereas project cost has

increased by Rs.198.23 crore due to other physical factors e.g. addition / deletion,

quantity variation and over/under-estimation etc, during execution besides

establishment which are explained in the report.

3. The Committee noted that the time overrun of 34 months & 16 days has resulted in

an increase of Rs.170.81 crore which is due to fiscal factors and consequential

increase in Interest during Construction (IDC) and Financing Charges (FC). The

Committee noted that the time overrun of 34 months & 16 days was due to

hindrances such as geological, law and order etc. as given at para 3.1 which were

found convincing by the Committee.

4. On examining the reasons of cost and time overrun, Committee is of the considered

opinion that reasons for cost and time over-run were beyond the control of any

No.2/1/2015-NHPC Government of India

Ministry of Power

Annex-H (Pa l/H)

Shram Shakti Bhawan, Rafi Marg, New Delhi 110 001, dated 23.04.2015

Sub: 2nd meeting of the Standing Committee on time and cost overrun of Uri-II & Sewa-ll HE Projects held on 15.04.2015 under the Chairmanship of Special Secretary (DC) at MOP.

A copy of the minutes of the meeting held under the Chairmanship of Special

·Secretary (Power) on 15.04.2015 to review the Standing Committee on time and cost

overrun of Uri-II and Sewa-11 HE Project are enclosed herewith for information ·and

necessary action please.

Encl: as above. / /..,/'

To

(S.S. Rawat) Under Secretary to the Government of India

Tel. No.23324357 e-mail: usnhpo@gmail.com

1. Chief Adviser (Costs), Ministry of Finance (Deptt. of Expenditure) Room No.207, 2nd Floor, C Wing, Loknayak Bhawan, New Delhi.

2. Adviser (Power), NITI Aayog, Sansad Marg; New Del~i-110001. 3. Joint Director, Ministry of StatL5tics & Programme Implementation.

Sardar Patel Bhawan, Sansad Marg, New Delhi-110001. 4. Chairman, Central Water Commission, Sewa Bhawan,

R.K. Puram, New Delhi 5. Member (HE), CEA, R.K. Pu ram, New Delhi-110066. 6. CMD, NHPC Ltd., Sector-33, Faridabad. 7. JS & FA, Ministry of Power.

Copy to:

1. Sr. PPS to SS (DC)/PPS to JS (H)/DS (H-11), Ministry of Power .

1:F

/

. :r:. ~

~~r·

·--·· .. :--····-- ··---~·.

SI.

~TI .e.. ")d - H . . . . . (?~ 1]:..J 'i.) -··-·-

Minutes of the 2"d meeting of the Standing Committee on T'tme and Cos( overrun of Sewa ~ II HE Project held on 15.04.2015 under the Chairmanship of Special Secretary (DC) at MOP. 1. List of Participants is enclosed as Annex-1.

2. The 2nd meeting of the Standing Committee oh Time and Cost overrun of Sewa-11 HE Project was held in NPMC Hall at 2"d Floor, Shram Shakti Bhawan, Ministry of Power, New Delhi at 3.00 PM on 15:04.2015 Immediately after the completion of the Standing Committee meeting on RCE of Uri - II HE Project.

3. NHPC started with the presentation and intimated that Sewa - ll project was commissioned

on 24.07.2010 and is presently under commercial operation. NHPC further intimated that

against the sanctioned cost of Rs. 665.46 crs at Sep 2002 PL, the Revised Cost at

completion works out to Rs 1108.82 crs excluding contingent liabilities, resulting in a total

cost overrun of Rs 443.36 crores. NHPC intimated the details of the cost overrun of Rs.

443.36 crs, its break-up and reasons as sought by the Committee. The deliberations are

summarized as under:

DescriJjtion Fl (Rs. Crs.)

Reasons given by NHPC during the presentation

a rncrease in interest and taxes etc . - --- - - - ~ Due to I DC I 81.13 tc was not kept in sanctioned cost as per prevailing

ractice then & also the IDC increased further because of ncrease in construction period and overall increase in

Due to Taxes &Duties kwcT,CST ~tc.)

15.52 !Increase in WCT from 4.2% to 8.4% and further to 10.5%

!Sub-total 96.65 b llncrease in Cost due tQ Quantities

Due to Addition I · 40.91 he detailed break up was presented by NHPC wherein It Deletion as explained that the increase was due to increase in

Due to Variation in louantities

58.90

ajor works besides in establishment. The representative f NITI Aayog asked the bifurcation of Rs 3.1 ~ crore nder "Others~. NHPC explained the bifurcation k­uilding (Rs 1.44 crore) , R-communication (Rs 0.67 rore) & X-Environment & Ecology (Rs 1.05 crore).

he breakup of the same was presented by NHPC. In the Work, there was an increase of Rs 46.92 crores mainly

y increase of M25A40 concrete in the spillway glacis nd increase of reinforcement in dam. There was saVing f Rs 30 crores mainly due to reduction of OT length from 23m to 290m & reduction in M15A40 & M25A40 oncrete during execution. Also in J-Power plant (Civil orks), there was increase of Rs 12.69 crs mainly due to

ncrease in length of HRT & in exeavation in shaft during xecution. There was also a saving of Rs 10.78 ·crs ainly due to reduction in backfill quantity in the water nductor system. Besides above, there was minor

S b- ·tar . 99 81

ncrease in other heads, which resulted in net increase of u to • s 58.90 crs.

·------~~ -----------

A riree'f{ ,_ H

I -IN ~.-/-'..-n-"--J __ c jtncrease in Cost due to increase in prices

Due to Over/Under I 98.41 'estimation

Due to inc.rnase in Prices I 148.49 1during Construction Period

Sub-total 246.89

Total 443.36

Increase of Rs 61.37 crores was due to higher rate of awards of Electrical works, besides increase in cost in ther heads i.e 0 Misc & establishment. Committee esired to know the justification of higher rates quoted by

owest bidder for the electrical works. NHPC explained hat the electrical works contract was awarded after two imes bidding. The lowest bidder was Mis BHEL Ltd, a overnment bf India Enterprise whose quoted rates were

ound justified during evaluation of tender in view of brupt increase in prices of copper wire bar & ferrous etals from sanctioned estimate price level to the

warded date. The % age increase in P1ice indices was lso shown to the committee. rice .escalation in Major Civil and Electrical works durin onstructlon which was of the order of Rs 72.11 crores an 8.69 crores respectively , besides increase ir stablishrnent , which was mainly due to Wage reviBion. I

· tas further explained that the price escalations in respec ,f Civil and Electrical works were worked out strictly as pe1 rice escalation provisions of the respective contracts.

4. It was further noted by the Committee that against the schedule completion period of 48 months, the project was comp1eted in 82 months& 16 days, resulting in time overrun of 34 months and 16 days and desii:ed to know the reasons for the same. NHPC explained the main reasons for time overrun viz. to technical problems, design issues, ·law and order problems, geological surprises etc. The periods of delay on account of each of above mentioned reasons were also furnished by NHPC.

· 5. JS (Hydro), MOP wanted to know the basis of periods of delay shown against each reason of delay and whether the overlapping periods have also been taken into account. It was explained by NHPC that delays were calculated on the basis of entries in the the hindrance registers of all the components of major works maintained at respective sites after deducting the overlapping periods. Based on the said records, the time extension was granted by the competent authority.

6. JS (Hydro), MOP further desired to know whether the changes made in the various items for works as explained by NHPC in the meeting have been examined by the statutory bodies. CENCWC intimated that the same have been checked while examining the RCEs and found in order.

7. JS (Hydro), MOP further desired to know the queries ff any, of the other members of the committee. In reply, the representative of MOF intimated that the Standing Committee note/RCE was examined and detailed discussions with NHPC officers were held twice in his office chamber and the RCEs have been found in order. The representative of NITI Ayog desired to know about the monitoring mechanisms being adopted. It was explained by NHPC that·project progress review meetings are taken regularty at projeet, regional office and corporate office level separately. The representatives from CEA also visit the site from time to time to monitor the progress of the works. Besides above, the issues are discussed

AY1r> ex - H . . f PfJ 4/t1)

time to time to ·monitor the progress of the works. Beside~bove, the issues are discussed in Quarterly Progress Review meeting taken by MOP attended by representatives of . various statutory bodies.

8. Decisions:

The Committee was of the opinion that the reasons for Cost and Time Overrun explained

by NHPC were broadly in order and the RCE can be considered in the next meeting for the

recommendations in which NHPC should furnish the following additional information:~

i) To provide details of the QPR Meetings.

ii) To make an index of different heads mentioning the items covered under them.

iii) To indicate th~ slide no. of hyperlinked slides in main slides.

iv) To give reasons of increase in the slides showing breakup.

v) To furnish the% age increase in Price Indices of copper etc.

9. The next meeting would be held on 81h May, 2015.

The meeting ended with thanks to the Chair.

An·n-e..?!--H -lP~ ~nJ

2nd meeting of the Standing Committee on time and cost overrun of Uri-II & Sewa-11 HE Projects held on 15.04.2015 under the Chairmanship of Special Secretary (DC} at MOP.

Sr Name of the officer Designation No

Ministry of Power -· --··-1. Sh. Devendra Chaudhry Soecial Secratarv

. ·-2. Sh. A.K. Verma Joint Secretarv(Hvdro) 3. Ms. Meera Shekhar Deouty Secretgary{H~ll) 4. Sh. S.S. Rawat Under Secretary

Centr~I Electricity Authority 1. Sh. P.c: Jiloha Director(HPA) 2. Manoi Tripathi Director(HPM)

NHPC Ltd 1. Sh. R.S.T. Sai Chairman & Managing Director 1. Sh. D. P. Bhargava Director(Technical) 2. Sh. AKSarkar Executive Director{Plg) 3. Sh. Javant Kumar Executive Director (Finance) 4. Sh. S.H.Zamar Chief Enqineer (Pia)

Ministry of Finance 1. Dr. MV Namade Joint Director(Cost)

NITI AYOG 1. R.Y. Kadeer Research Associate

Central Water Commission 1. Sh. Ashok K. Jeph DeputY Director

()

()

A?J/~- J-J '

Gj,, .,.. .

No.2/2/2015-NHPC Government of India

Ministry of Power

Shram Shakti Bhawan, Rafi Marg, New Delhi, the 14.08.2015

Sub: Minutes of '3rd Meeting of Standing Committee on Time & Cost over~ runs and fixing the respon~ibility for delay in commissioning of Sewa-11 HE Project (120 MW} l;n·J&K Implemented by NHPC.

A copy of the minutes of the meeting held under the Chairmanship of .Additional Secretary(Power) on 29.07.2,015 regarding Standing Committee on Time & Cost over-runs and fixing. the responsibility on the delay in commissioning of Sewa-11 HE Project (120 MW) in .J&K implemented by NHPC Limited i enclosed herewith for further necessary action.

Encl: as above ~S:- s: Rawat)

. Under Secretary to the Govt. of India Tel.23324357

1. Chief Adviser (Costs), Ministry of Finance (Deptt. of ~xpendlture} Room No.207, 2"° Floor, C Wing, Loknayak Bh·awan, Khan Market, New Delhi.

2. Adviser (PAMD),· NITI Aayog, ·sansad Marg, New Delhi-110001. 3. Joint Director, Ministry of Statistics & Programme· Implementation, Sardar

Patel Bhawan, Sansad Marg. New Delhi-110001. 4. Chairman, Central Water Commission, s·ewa Bhawan, R.K. Pliram, New

Delhi 5. Member (HE), CEA, R.K. Puram, New Delhi-110066. · 6. CMD, NHPC Ltd .. Sector-33, Faridabad. 7. JS & FA, Ministry of Power.

Copy to:

PS to JS (BN_S)/PPS to JS (H)/OS (H-11), Ministry of Power.

,()

()

~~~~--~--~-

Pt Y\ ~?<! - 11

\ii IJ) ·. . /

Minutes of the 3rd meeting of the Standing Committee on time and cos.t overrun of .Sewa-11 HE Project held on 29.07.2015 at 1100 Hrs under the Chairmanship of

Additional Secretary (BNS) at MOP. -~~~~~~~~~~~~~~~~~

1. List of Participants is enclosed as AnnexD1.

2. The 3rd meeting of the· Standing Committee on Time and Cost overrun of Sewa-11 HE·

Projects was held in NPMC Hall, 200 Floor, Shram Shakti Bhawan, Ministry oi

Power, New Delhi.

3. Chairman, Standing Com~ittee, welcomed the participants and requested NHPC. to

make the Presentation on Sewa-11. NHPC, after welcoming the Hon'ble 'members of

the Standing Committee & other participants, started the presentation.

4. . NHPC, after explaining the features of the project and its layout, intimated that the

project was discussed in detail in two meetings of Standing Committee held on 19.03.2015. & 15.04.2015.

5.

6.

It was further explained by NHPC that in the 2°d meeting of Standing Committee it was ·

intimated that the project was .commissioned on 24.07.2010 at a cost of Rs. 1108.82

crore against scheduled date of 08.09.2007 & sanctioned cost of Rs. 665.46 crore

· (Sep'02 PL). Thus, the Project has incurred a time overrun of 34 months & 16 days

and a cost overrun of Rs. 443.36 crore.

NHPC also intimated that in the 2nd meeting of Standing Committee, they gave

detailed reasons for increase in time and cost overrun and also answered the queries

r!'lised by the Committee members. Further, as recorded In the minutes of meeting

dated 15.04.2015. the Committee found the reasons explained by NHPC for Time

and Cost Overrun broadly in order. It was further recorded that the Committee can

consider RCE for recommendations in the next meeting.

7. NHPC further intimated that in the 2hd meeting, NHPC was asked to furnish some

additional information as recorded in para 8 of Minutes of meeting dated 15.04.2015.

NHPC furnished the additional information on 05.05.2015 and explained the details of

the same during the meeting.

8. In order to facilitate the members to recollect the case and for the information of the

new Chairman of the Standing Committee, the detailed reasons for the time and cost

overrun were explained afresh during the meeting.

9. The Chairman enquired about the specific reasons for considerable increase in the

Establishment cost. In response, NHPC explained that the DPR provides a normative

percentage provision for establishment cost and the expenditure depends upon actual

,C)

()

10.

·-----··-~,----

fA f\1'\Jl~ - H

a;,,: .~~·

~~· ._

deployment of the manpower. Therefore variation in the establishment cost during the

construction is inevitable. The other reasons were considerable spread in' layout of the

of the project, wage revision w.e.f. 01.01.2007 during the period of construction, non-

~ inclusion of expenditure till zero date of the project in the sanctioned estimate,

·increase in construction period etc.

JS (Hydro) des.ired to know whether the interim RCE was submitted and asked for

reasons for late submission of RCE at completion costto Standing Committee, when

.the project was commissioned way back in July 2010. NHPC repres.entative

explained that NHPC submitted an interim RCE amounting to Rs. 1018.98 crore at

Feb. 2009 PL to MOP/CEA on 22.06.2009. But while CEA/ ewe was examining the

RCE, the project got commissioned in July 201 O. Accordingly, the RCE at completion

cost was re-framed and submitted to CEA in D~c. 2010 which was returned by CEA in

Sept. 2012 for revision in Price Level. NHPC submitted the Revised RCE at current PL

in October 2012 and Design Changes Memorandum .in Nov. 2014 after which C!;A

·finally cleared the RCE in Feb. 2015. The proceedings of Standing Committee started

thereafter.

11. · The representative of NITI Aayog enquired about the contingent liabilities. NHPC

explaineq that there are contingent liabilities of Rs. 102.75 Cr (approx.)· as on •

July'2010 and the same; being s.ubjudice /under arbitration, have not been included in

the RCE at completion cost.

Decisions:

While concluding, the Committee desired that the draft report of Stariding Committee be sent to all the Committee Members so that their comments can be discussed and the report can be finalized during the next meeting after the following details are incorporated in the draft report:

. i) Detailed reasons of cost and time overrun as explained in the Standing

Committee meetings· ·

ii) Detailed reasons for Increase in establishment cost

iii) Detailed reasons for .late sub':1ission of RCE to Standing Committee and

iv) Details of contingent liabilities and other details sought by the Committee

~

()

()

An Y\Q 11- 11 ~

CJ/II ; 3rd meeting of the Standing Committee on time and cost overrun of Sewa~ll HE Project held on 29.07,2015 under the Chairmanship of Additional Secretary (BNS) at MOP.'

Sr Name of the officer ----[Designation No -Ministry of Power 1. Sh. B.N. Sharma Addiltional Secretary(Power)

-~

2. Dr. AK. Verma Joint Secreta!}'.{H~dro L _ _:____ 3. Sh. P .K. Ravi D-~~ Secretarv <Fin.) 4. Ms. MeeraShekhar Deoutv Secretaary(H-11)

Centrail Electricity Authority --1. Sh. S.K. Monda! Chief Enaineer(l/C)

-2.-- Sh. ManojTripathi Director -3. Sh. ShaNan Kumar Director

NHPC Ltd 1. Sh. R.S.T. Sal Chairman & Manaaina Director 2. Sh. O.P. Bharaava DlrectorCT echnical) 3. Sh. A.K.Sarkar Executive Director(Plal 4. Sh.-Vineet Diddi Chief Englnee4r 5. Sh. S.K. Aaarwal Chief Engineer 6. ' Sh. J~pas Sinha Chie.f EnQineer 7. Sh. Birendra Kumar Manager( Civil} 8. Sh. Vivek Shrlvastava Chief Engineer 9 . Sh. K.K. Goel Chief {Finance)

. Ministry of Finance 1. Dr. MV Namade

'

Director( Cost) ---·--

NITIAYOG 1. Sh. Shatrughan lal Consultant

-

.y·1

·;

., ______ .

\'

--~----- --------~ --· ----·------------------ ------- _ _ _ Arrne:1- •:I., C Pt t/-2~) •· , · e+1 tlf":Bt rt!!. t:a , =-(11l"'ffl '<'f y Cf>N Cf>T '\3El17)

Jfl~ l~{I Gl) 9001, 14001 ;~ffi ;>,Tft ~ 18001 wnfUn1

HHPC Lknit:ed

~/Ref: NH/PD/PC/Sewa-11/ &'°09 Sh. S.S.Rawat Under Secretary, GOI, NHPC DO, Ministry of Power Shram Shakti Bhawan, Rafi Marg, New Delhi-110001

(A Govt. of India Enterprise) IS0-9001, 14001 & IS 18001 Certified Company

'"·~-.. m /Faridabad Date: 05.05.2015 m /TEL. ---

Sub: Action taken report on 2nd meeting of Standing Committee on time & cost over-runs and fixing responsibility on delay in commissioning of Sewa-11 HEP- Regarding.

Sir,

This is with reference to MOP's letter no. 2/1/2015-NHPC dated 23.04.2015

vide which minutes of the meeting held under the Chairmanship of Special Secretary

(Power) on 15.04.2015 have been forwarded to NHPC for necessary action.

In this regard, the action taken on above said Minutes of meeting is enclosed

as Annex-I.

Them king you, Yours faithfully,

Encl: As above

~-/­.c?'__..~--- ~JiTID

ct\ifrc.DC'I" q)n:ffc;m r.

Regd. Office 121003(HARYANA)

(S.H. Zargar) Chief Engineer-II (Pig_.)

~C(i!cfl~:fl ~. ~-33 llJR<:;llS/l<:;-121003 (0Rl11011) NHPC OFFICE COMPLEX, SCCT0/\-33, FAIDABAD

1J:

··-- ... ...oL_ ·-··· ~~~~~·,

,...,___

S.No. Observation

·1. To provide details of the QPR

meetings·.

2. To make an index of different heads

mentioning the items covered under

them.

3. To indicate the slide no of

hyperlinked slides in main slides.

\ . 4. To give reasons of increase in the

breakup slides.

5. To furnish the % age increase in

price indices of copper etc.

NHPC's Reply

Enclosed as Annex-1.

Enclosed as Annex-2.

A"' "f\e.)( - I pq_ 2/2 Vi 0 ANNEX-I

"'

...

Presentation incorporating the

same is enclosed as Annex-3.

I

Enclosed as Annex-4. . ..

ill'!:<lili 1111~:~1

. --·--··-·-· ·------·---- - -- ------ - -----------------· -- -- --------~. -.......... - A'nntX- i- .. ------A'n:n<J.xr P3l¢fv1'

Points of Sewa-11 HE Project discussed in Quarterly Performance Review V Meeting:-

Meeting held on 21.11.2007:- It was discussed that in Sewa-11 besides the

technical problems in the Headrace Tunnel, the progress has suffered due to

·go-slow tactics of contractor's labour and problems created by local people, and

as a result of these, the project completion is now likely to be delayed to June,

2009. NHPC had written a letter to Chief Secretary J&K. After detailed

discussion Secretary (Power) desired that the Project should be completed by -

December,2008 in any case and a makeup plan should be prepared by NHPC

to cover up the slippages.

Meeting held on 16.01.2008:- It was discussed that face 6&7 of' HRT are

critical faces and balance 900m of HRT excavation will be done by

September,2008 with progress rate of 11 Om/month. Concreting of HRT will be

completed by March'09 with 6km. of concreting of HRT by Sept'08 and balance

4 km. by 1st week of March'09. It was indicated that first unit would be

commissioned by last week of March'09 (with best effort). All the three units will

be commissioned by June'09.

Meeting held on 07.03.2008:- NHPC informed that the HRT boring is likely to

take another 6 to 7 months; concrete lining will also take about 7 months @400

to 600 m per month. Balance lining of 4800m stretch is still to be completed

between faces 6 & 7. As such, the project may slip even beyond the now

anticipated completion date of June'09. NHPC however assured that all out

efforts are being made to speed up the work and complete the project by the

scheduled date. NHPC informed that the work is suffering due to bad geology

encourtered in the tunnel and also due to strike and agitation by the labour force

of M/s GIL.

Meetingheld on 02.06.2008:- it was discussed that the excavation"of HRT is

expected by Oct'08 lining by April'09 reservoir filling by May'09 and

commissioning of Project is expected by June'09. There may be a possible

delay of 1-2 months. The Labour Union, particularly the CITU is hampering the

work very badly. Recently some agreements have been signed with the Unions,

following which the progress is expected to improve. However, CEA pointed out

that at the present rate of excavation and concreting, in this small diameter

tunnel the completion date at the present trend works out to be around Dec'09.

Issue was deliberated in detail. Secy(P) desired that since no project was due

A ri'f\. t~ - .:C Pap- ~11-'1

for commissioning in 2008-09, NHPC should strive to complete all the major

works of Sewa-11 by March'09.

Meeting held on 07 .10.2008:-lt was informed that the main bottleneck in Sewa­

ll is the overt concreting of about 6.5 kms which has to be completed by May'09.

This includes concreting qf more than 4.2kms between face VI. & Vil, the

excavation of which is expected to be completed in Oct'08. On a query by

Secretary (Power) it was explained that three gantries each in faces VI & VII are

planned to be deployed. Secretary (Power) desired that concreflng works

should be carried out round the clock in three shifts so as to ensure at least \

400m overt concreting per month to complete the work so the Project could be

completed in June,'09.

Meeting held on 09.09.209:- Secy.(Power) asked NHPC to ensure

commissioning of Sewa-11 by Dec.2009 for which close monitoring "should be

done on monthly basis. Member (Hydro) informed that there may be delay of 2-

3 months beyond Dec.2009 in commissioning of Sewa-11. NHPC explained that

1 unit of Sewa-11 will be commissioned in Dec.209 and remaining units in

. Jan/Feb.2010. It was decided that Sewa-11 should be commissioning in all

respects by January,2010.

Meeting held on 19.01.2010:-lt was informed that 1 bl Unit will be curnrnissioned

in January,2010 and 2nd & 3rd unit in Feb 2010. Secretary(Power) desired that

commissioning dates should be adhered to.

*******

S.No. 1.

2.

3. it

4.

5.

6.

7.

8.

9.

10.

11.

t~Y i ' \:·

INDEX OF DIFFERENT HEADS Heads Description

A- Preliminary various investigations, Surveys, Model tests, ecological studies, etc.

B-Land Acquisition of land, rehabilitation & resettlement including compensation

for property, Interest charges, Solatium charges, demarcation &

measurement charges etc

C-Civil Works Dam.Head regulators, etc.

J- Power Plant Civil Works Intake structures, Water conductor system, Surge shaft, Power House,

etc.

K-Building Residential I Non-residential buildings, Office buildings, Testing

laboratories, Workshops, Other Service Buildings, Community Centre

etc.

0-Miscellaneous capital cost & maintenance of Water supply, Sewage disposal and drainage works, Recreation, Medical, Fire fighting equipments, Inspection vehicles, School bus, Visit of dignitaries, Welfare works, Cost of construction power/ electrification & its maintenance, etc.

P-Maintenance during Construction cost of maintenance of all works during the construction period etc.

Q-Special T & P Drilling & . Grouting equipments, Transport, Compaction, Electrical equipments, Construction Plant & Earth Moving equipments and other Miscellaneous equipments.

R-Communication Construction of main approach roads, quarry roads, temporary or permanent river crossing, Railways, Bridges, connecting roads, water ways and airstrip/helipad.

X-Environment & Ecology Compensatory afforestation, catchment area treatment, establishment . of fuel depot, salvage ·' rehabilitation of any rare or endangered speCies

' .-' of flora and •fauna, control of aquatic weeds, public health; measures to

control water or soil borne diseases, Restoration of land, seismological measures etc.

Y-Losses on stock Provision for losses in store, etc.

)> )>

~ :::s -;3

~ n ~

\~ ~ ~

\J\ -"' ~ 40

r.·-

· ·- ·· ··----------A·nn~-3-·: _______ _

NHPC WELCOMES

HON'BLE MEMBERS OF

STANDING COMMITTEE (SC)

PRESENTATION TO

STANDING COMMITTEE ON

REVISED COST OF

Sewa-11 HE PROJECT

AT COMPLETION

{3X40 MW}, J&K

NHPC LIMITED

2015

A 'YVYV::x - r P} 6 I 2'1.

1

2

I

.~

,,.,,.. \_

(i)

(ii)

(iii)

(iv)

PROJECT FEATURES

State /District Jammu & Kashmir/ Kathua

River Sewa

Type of Dam Concrete Gravity Dam

Height of Dam 53 m

A-n'Y'le)I-~

fa- 7 /2-'*1

(iv) Intake 2 Nos ,Size of Gate 2.75 m X 3.0 m

(v) Power House Surface

(vi) Net head 560 m

(vii) Annual Energy Generation 533.52 MU

Layout Plan-Sewa-11 H.E. Project 3X40MW in Jam mu & Kashmir

""'"""' ~~'·

~

~ft>-1:!'1

,/"....- !<M.:A'i

HE.4.0RACE"i'.UHUE~

., l-E.l.CRJ.O:'f\.•1'N:1,

F"" """°

LAYOUT PLAN· SEWA-11 H .. e. PROJECTl3X40M!fl

3

•

( -,_,

2

(

----~-------~-

A.'Yl'N:x- L

f~ ~/2-'1

COST & TIME OVERRUN

• Sanctioned Cost

• Revised Cost at Completion

• Total Cost overrun

• Schectuled Commissioning date

• Actual Commissioning date

• Time Overrun

Rs. 665.46 Crore (at Sep, 2002 PL)

Rs. 1108.82 Crore

Rs. 443.36 Crore (Refer slide 7&8)

08.09.2007 (48 Months)

24.07.2010

34 Months & 16 Days

ABSTRACT OF RCE AT COMPLETION

Rs.In Cr

lnadequ.ale/,

I CCEA RCE at OYerprovlslon· Ch1ng1 In

S. I Oescrlpticn Sopl 2002 Compl'!ltion Variation SoopOI .... . Additlonf Change In No PL Cost

Char)ge In Escalation Deletion SL

Other:; Due to Design Quantity

.. ~, . . .••. r:1~~, WORKS

~~TCHARG~---------- ____ : v~;;:.,:.,,,,.,.. - --------- -- - -.r-:----

• f'Ht:llMlNARY 6.6 8.1· l.l 0.3 ; o:~ cc

. 'lJ-.LANP 5:1 13.2 ~..1 1.5 ...

0.41 0.0 5.4 :·Q:ss ~-WOJll(G 101.i: 16-2.'11 61.1 -~

'°·°' ,._. 3.t;il ·:t&·

~ -·~OVIJl!tff:'°U\N f C.JVll,. WURi'-~ 210.C< 275.~ 57.6 !~.··· :10.7 411.11 •.o "),

( • BUILDINGS 15,9' 23.8 ""' 1.2 •'; .. 1J4 3.11 1.4 0.21

to.'- M1$CE,Ll..ANE.Ol,IS 20.6! 36.S 15.7( '3.8 6.5 5.3 .

P.- ~-Al.NTENA~~E 3.Bi: '12.8' 9.z 6.! 2.6

kl-set; TOOLS'&· PlANTS 24.21 7.• -16,E -1.71 .· ~. -14.91

~-·:~.9~MV~.19AT1_0~ 30.6 33.5 2.9 O.< :..0.4: 2.3 . 0,6i

l>c·~·EN.ViRONMENT & E90LQGY 11.9 10.9 -1.a -1.0 -1.0 1.Q!:

t'f ·.LO:SSES ON STOCK 0.91 0.01 -0.9 -0,9( 0.0

t6TAL OF l. woRKi 439.• 575.21 135.7! 3.7: 59.61 -40.8( .... 17.311 {0,7.

I· ESTABLISHt.1ENT 46.> 179.~ 133~i 32.9C 34~ 42-:Qj 23.Pil II - TOOLS ANO PLANTS 4.0 4.3' 0.21 0.2f

IV - su"sPENSE

'.RECEIPT & "RECOVERIES -15.~ -13.~ '-~ 0.41 1.17

TOTAL DIRECT CHARGEl 474.4' 745.3' 270.9' 37.1> 59J?1 -4.~ 127.741"• 40.s~I 10.22

NOIRECT CHARGES

l.A~~p~~~~~~~ VALUE OF ABATEMENT OF

I-AUDIT"& ACCOUNTS CHARGES 4.0I 10.01 5.9: 3.6 2.0

TOTAL INDiRECT CHARGEC 4.01 10.01 5.9: 3.8 2.0

OTAL CIVIL WORKS 476.5: 755.3: 276.87 37.0< 59.61 --0.71 129-:0 ' 40.91 1,0.22

8. LECTRICAL WORKS "116.5: 203.• 65.3E 61.3 18.~ 5:31:

c. OTAL NET COST WITHOUT ICC & FC 597'.0< 959.27 362.2 98.41 59.61 --0.71 146.4! 40.91 15.5:

o. DC& FC 68.4: 149$ 61.1 ~ c11

"OTAL COST WITH JDC & FC 665.4' 1108.8 443.3 .OOA1 59.61 80.4: !-~.4 41.HJl 155:~

5

3

A'h-ney.J:. ~ °'j2-'1

SUMMARY: COST OVER RUN Total Cost Overrun Rs. 443.36 Crore

S.N Item Amount (Rs.in %age of total Increase in %age of Crore) increase total sanctioned cost

(i) Price escalation 148.49 33.49 22.31

(ii) Exchange rate variation 0.00 0.00 0.00

(iii) Statutory Levies 15.52 3.50 2.33

(iv) IDC & FC 81.13 18.30 12.19

(v) Change in Scope -9.51 -2.14 -1.42 (

(vi) Addition/Deletion 40.91 9.22 6.03

(vii) Under/Over Estimation 158.02 13.08 23.74

(viii) Others(Due to Qty) 8.80 1.98 1.32

TOTAL 443.36 100 66.62

7

BREAK UP OF COST OVER RUN OF RS. 443.36 CRS.

51; !Variation Heads Amount No. Rs. in crores)

t Increase in interest a'.nil ta~es etc .

. ··· .... • Increase due to IJ")ter¢.sf0,Uiirig Construction. (IDC) 81.13 . •. ,·.• ... . .<Refer slic:Je 9) :. ;o' Increase due lo Tai(~s'al}d Duties (WCJ, CST etc.) 15.52

(Refer slide 10) .·

2 Increase in Cost due. to Quantities .. Addition I Deletion 40.91

(Refer slide 11)

Variation in Quantities 58.90 (Refer slide 12)

3 Increase in Cost due to increase in Prices

Over/Under estimation il.MJ (Refer slide 13)

Increase in Cost due to increase in Prices during Construction Period 148.49 (Refer slide 14)

Total 443.36

8

4

IDC &FC

Art"ex X- T r "'iZ l n / c_ vi

Breakup of Rs. 81.13 crores due to increase in IOC &Fe. (Rs in Crore)

S.No. Reason for increase Variation Amount Reasons ..

(Rs. in Crores)

(i) llncrease due to consideration of 1.85 FC was not considered !Financing Charges (FC) in Sanctioned Cost

inadvertently

(ii) !Decrease in Interest rate on· term -5.01 Uoan from 10% (CCEA) to 9.24% Actual weighted)

(iii) OCncrease in Construction period 68

iv) OCncrease in Cost 16.29

Total 81.13

9

Break up of Rs.15.52 Crs due to Increase in Taxes and Duties (Rs In Crore)

~I.No. Description Variation Reasons

I Civil

C-Works 2.64

~ - Power Plan! Civil Works 6.78 WCT was taken as 4.2% in estimate which increased to

Others 0.21 8.4% & further to 10.5%. Total (1) 9.63

II Electrical 5.30

III B -Land (NPV towards forest 0.59 land)

Grand Total Taxes (l+Il+III) 15.52

10

5

A'f\'Y\ex-T

PA£J- ' '/ 2""

Break up of Rs. 40.91 crs due to addition/ deletion

Rs. in crores

SI. No. Description Variation Reasons

1 B-Land 5.46 Additional land required.

(Refer slide 23) Compensation to forest department etc.

1 C-Works 3.61 Aomhonal items e.g. bearmg plates, JOmt filler &: ce1hng

(Refer slide 24) compound, elastomer etc.

2 J - Power Plant 5.08 Rocker bearing, PU grout & protection works of

Civil Works (Refer slide 25) penstock area, etc.

-,········ 3 Establishment 23.60. Wage revision.

(Refer slide 36)

1··· Others 3.16 IQtrease in other heads (Refer slide 26)

Total Civil works 40.91

Contd 11

Breakup of Rs. 58.90 crs due to Variation in Quantities ISL NO.]i>estriotion lVariation IReaso·ns

If- ·~:~~:'::~

12•

lb)Saying

,· ~:· :::~-~9Wt:r Plant Ci:vil . .,or)µ.

)Incr~se

)Saving

-Building

0-Misc

P-Maintenance

-SplT&P

stablishment

Others

otal

~6.9.2

(Refer slide 31)

-30.00.

(Refer slide 27)

b~crease.mainly due to: ., M25/ A40 increased considerably in spill~aY.: glad$ .. Road works, Re:inforcement in Dam ,lnstn.,me.rita.tiou etc.

QuaOtities reduced during detailed engg; mainly::~Ue to: nt iengih reduced from 323m to 290~. . .

~:!~'.irequirement of Concrete grade Ml?A40:&· M25A40 during detailed

: 1.5~; th~~e has been some increase in ·cos"t. d~~· ·to cement variation & dditives.

.~: ~~.c~Case mainlr due to: (Refer slide 32). tLength ?fH.RT increased.

· Excavahon m Shaft

.J0.78

(Refer slide 28)

1.94

6.51

(Refer slide 29)

6.57

-14.91

~4.77

(Refer slide 36) 5.l8

(Refer slide 30)

58.IJI}

k.>e.cre~ mainly due to: Backfill concrete quantity reduced.

Increase mainly due to: Accommodation created for CISF. Some additional buildin2s.

1JPC.reaSe m3inlY-duCiO increase irJCOnstruction periOd oh account of security1

brra~gements, maintenance service etc.

ncrease in recurring e:cpenditure on maintenance on roads & buildings due o additional construction period.

iDue to Coverage of Construction equipment in the Scope of Major works !contractor. !M"ainly due to Increase in construction period.

!Increase in other heads.

12

C,

6

\,~

Anrne¥-T

Pc;p- 12- f 2.. ~

Break up of Rs. 98.41 Crs. Due to Over/Under estimation

ISl.NQ: . Description

1

2

3

(Rs in Crore)

Vatiation Reas~ms

6I:J'f-,Main reason is higher;r.?~~.6[•~.ar!l•~~i!i°st (Refei'.slide 34) open com.p~llllv! !nd~1.~g; ' ..

:· .' ., ,; <

3.80 tncrea.se mainly on: accou.nf,.oC$e~.~flty;

(R'. f Tct 33) rrailgements, main.te .. nan"c¢· ... ~eryi.~eit<;·d· .. µ ~ er s I . e. -- 0 iricrease in construc~i,9.? pfriP~~ ::. ·:!J

. :31.90 (Refer slide 36)

0:34 ricrease in· other freads.

Totall 98.41'

Break up of Rs. 148.49 crs due to Increase in Cost due to increase in Prices during Construction Period

(Rs in Crore)

ISi.No. Description Variation Reasons· I

: ... : 1 <Works 2s.oo " --·- s per.Price escalation .. prov,isio"Jisjif:-; . .".

2 · • P~wer Plant Civil Works 4it11 oniract. . . ';····

3

4 · ·•• Miscellaneous

5 IR· Communication

6 !Establishment

7 !Others

Total Civil Works

Electrical Works

Total (Civil+Electrical)

5.38

2.36

42.06 (Refer slide 36)

4.79

129.80

18.69

148.49

tDue to inflation.

!Mainly due to increase in DA.

~ncrense in other heads.

~s per Price escalation provisions in !contract.

13

14

7

A'YI. rt\ e:t} - r_

f~ 13/2-~ E- ·-

CYCLE Rs. in crores

Reason Cost Overrun within Cost Overrun beyond Total cost approved time cycles approved time cycles overrun

Price escalation 52.87 95.62 148.49 Exchange Rate 0.00 0.00 0.00 Variation Statutory Levies 1.84 13.68 15.52

Increase in IDC & FC 19.62 61.51 81.13 Other Variation Heads 198.23* 0.00 198.23

Total 272.56 170.81 443.36

The cost overrun excluding Price Escalation (PE), Exchange Rate Variation (ERV) and Statutory Levies (SLV), within originally approved time cycle works out to Rs 388.65 crore (58.40%).

*The breakup of Other Variation heads is as under:~

1. Change in Scope Rs (-} 9.51 crores

2. Addition/Deletion Rs 40. 91 crores

3. Under/over Estimation Rs 158.02 crores

4. Change in design Rs. 8.80 crores

Total Rs 198.23 crores. 15

-------··--~-·------- -

DETAILED REASONS OF TIME OVERRUN OF 34 MONTHS & 16 DAYS ARE AS UNDER :

SI. No Reason for delay Gross Ne.I delay Description delay (days}

1 Delay in handing over the Adil- 230 116+112- Access road was handed over to the contractor with a Ill access road for mobilization 230 delay of 116 days. (011.9.2003 lu 03.01.2004) Time required for Stretch to portal of Adil-I II slided due to sliding of reconstruction of slided stretch rockmass supporting the formation width of road. The Of access road from main damaged stretch was restored by cutting towards principal road to Adil portal uphill side and this activity could be completed by (04.03.2004 to 23.06.2004) 23.6.2004. Widening of access road to portal as well

as treatment of uphill slopes by means of applying shotcrete. (112days).

2 Delay in excavation of Adit-111 115 115 Collapse of the junction portion of Adil with HRT due to due to collapse of junction extremely poor rock condition. 106 days (net) were portion due to adverse required to restore the collapse & access road. geology. (24.12.04to 17.04.2005)

3 Providing of Steel ribs due to 166 166 Extremely poor geological rock i. e carbonaceous week/poor rock conditions phyllite alongwith seepage was found from RD o to 90 from RD 00 to 90m m compelling to install ribs @ 50 cm c/c. (16.04.2005 to 30.09.2005) in Face-6 of Adit-111 Slide on the access road to 37 Overlap( not 25 metres of road from the access road to portal Adit-lllA (20.6.2005 to considered) slided and it was difficult to bring/remove heavy 20.6.2005) machinery and material required for excavation of

tunnel. 16

(

8

1~ 7

8

DETAILED REASONS OF TIME OVERRUN OF 34 MONTHS & 16 DAYS ARE AS UNDER

4 Delay due to rerouting of 106 106X.8=8 In sept'2006, there was major landslide on the access road to Adit-111 5 approach road to Adit-111 . After removal of slipe in due to frequent slides 2"' week of Oct'2006 the slide remained

recurrent and there was frequent blockage of access road: At the same location slide recurred on 05.12.2006 in much greater extent and it was decided to construct the alternative approach road so that this stretch of slide prone zone could be avoided in future also .. The alternative approach was completed on 20.3.2007 . In the meantime , 203 m progress was achieved against targeted 570m due to engagement of heavy construction machineries as JCB , loader etc for road blockade opening etc.

5 Concrete padding due to 63 Due to huge seepage, ponding created leading to huge seepage strucking of mixers etc., so concrete padding was (Face-VI invert) (17.7.2008 done to maintain progress. to 20.9.2008)

6 Traversing rerouted face -6 38 Due to low cover, HRT from RD 1560.539 -RD 1560.539 - 1585.512m 1585.512m & RD 1979.36 to 2012.36m has to be & RD 1979.36 to 2012.36m rerouted from the original alignment leading to ( 1.11.07 to 16.11.07 & increase of length. 25.6.08to 16.7.08)

DETAILED REASONS OF TIME OVERRUN OF 34 MONTHS & 16 DAYS ARE AS UNDER :

Law & order problems 201 27.1.04to29.1.04;29.9.04;26.12.05;20.3.06;26. such as due to Amarnath 4.06 to Sangharsh .samiti, oil 28.4.06;7.5.06to9.5. 06;20.5. 06; 11.6.06; 14.6.06 companies strike etc. ;24.6.06 to 26.6.06;26.9.06;27.9.06 to from 2004 to 2009 3, 10.06;11.2.08to 13.2.08;22.3.08 to

23.3.08;21.4.08 to 30.4.08;1.5.08 to 21.5.08;1.6.0B to 24.6.08;1.8.08 to 27.10.08;13.12.08; 5.1.09to13.1.09;24.4.09.

Additional works in Face 80 6 due to finding of weak zone from RD O to 70 such as reinforcement placing, invert soling, concreting by smaller length gantry i.e by 4.m inplace of Sm, additional consolidation grouting etc. from 22.7.2009 to 27.1.2010.

A'Yll\eY- I._

p~ ) \.f / 2'1

17

18

9

A11."ne~ - ..r_ f o.p.. I> /'2-'f

9

DETAILED REASONS OF TIME OVERRUN OF 34 MONTHS & 16 DAYS ARE AS UNDER :

Additional grouting in HRT 11+41 = After starting the HRT filling on 22.1.2010, (26.1.2010 to 05.02.2010 & 52 leakages were observed & consolidation grouting 12.2.201 Oto 31.5.2010) was started atter'emptying the tunnel.

10 HRT filling & ReservGir 37 HRT refilling started on 01.6.2010 and completed filling and testing & on 07.07.2010 alongwith testing & commissioning. commissioning (01.06.2010 to 07.07.2010)

Total 1067 days= 35.57 months

APPRAISING AUTHORITY

As per Para 3(0)(2) of the revised guidelines of Ministry of Finance (MOF),

O.M No.24(35)/PF-11/2012 dt. 29.08.2014 (If Increase in Cost excluding S.L,

ERV & P.E is beyond 20 % of the firmed up cost estimates), the Appraising

Authority is PIB/EFC.

As per the revised guidelines of Ministry of Finance (MOF), O.M No.1 (3)/PF-

11/2001 dt.15.11.2007 it is mandatory to append the report of Standing

Committee on Revised Cost Estimate to the PIB I EFC memo for the further

consideration by the EFC/PIB.

1~

20

~tJ1

10

--r--- - - ------------·----·-- --··-··---------------·-------·--~-·---·-------------------· ---------------------··-·· -·- ·-· - -- - . -·- - ---·----·---·------

'-·,

A'n nt>x - .I:­faµ.._ l6/ i.-~

STANDING COMMITTEE RECOMMENDATIONS REQUIRED FOR :

. 1. Cost overrun of Rs. 443.36 crore over the latest

sanctioned cost, excluding the contingent liabilities.

2. Time overrun of34 months & 16 days.

21

THANK YOU

22

11

BREAK UP OF RS. 5.46 Crs in B- Land

A.'YY'n {?)( ..... J:..­

p~ '7 / 2-"1

{Rs in Crore)

S.No. iterri Variation in Reasons Amount (in Rs.)

01 Land 1.34 Increase on account of additional Acquisition land acquisition in dam

submergence area and for adit roads.

02 Additional 4.12 Increase on account of additional Land land for residential colony at

Pathankot, forest land for quarry area, forest land for Mashka-Siara road etc, the provision for which was not kept at DPR stage.

5.46 Total

23

BREAK UP OF RS. 3.61Crs. In C-works

{Rs. In Crore)

S.No. Item Variation Amount in Rs.

1 Addition of Miscellaneous 1.48 items e.g. joint sealing ~ompound, joint filler, Bearing plates, ~lastomers etc.

2 ~dditional Capitalization 2.13 ~orks eg. Slope Protection , Landscaping etc.

!Total 3.61

24

-

i2

( ·.

\ . ., __ ,··

~;o ..

!Jiii~'­iiJt?

A'Yl'Yl ei<---J ~

P°'eY- ta/ 1-vi

BREAK UP OF RS. 5.08 Crs. in J- works (Rs in Crore)

S.No. Item ·Variation Amount in Rs.

1 Additional items such as Rocker Bearing, Non Shrink 1.13 Grout in PH & TRT.

2 PU Grouting in HRT 1.08

3 Additional Capitalization works(Hill protection works in 1.70 penstock area, etc.)

4 Reinforcement in HRT 0.44

5 Others 0.73

rrotal 5.08

25

BREAK UP OF RS. 3.16 Crs. in Other Heads

(Rs in Crore)

S.No Items Variation Amount Reasons in Rs.

1 K- Building 1.44 lncraese on account of 16 nos. quarter 'or CISF and dispensary & consumer store.

·2 R- communication 0.67 Due to increase in maintenance period o Mashka-Sandhar road for a period of 7 tyears against 4 years envisaged earlier.

3 D<-Environment & 1.05 lncraese on account · of solid waste Ecology management plan, sustenance of

~isheries etc. Total 3.16

26

13

BREAK UP OF RS. -30.00 Crs. in C- works

A "111\ e'ld- .L_ f°tJL r °'I 2.. '1

(Rs in Crore)

S.No. Item Variation Amount in Rs.

1 Reduction in length of Diversion Tunnel -1.96

2 Reduction of M15/A40 grade concrete. -15.77

3 Reduction of M25/A40 grade concrete. -13.10

4 Reduction of M20/A20 grade concrete - 6.13

5 ~ement variation &. Additives. 6.87

Total -30.00

27

BREAK UP OF RS. -10.78 Crs. in J-works (Rs in Crore)

S.No Item Variation Amount in Rs. Reasons

1 Reduction in Backfill -7.00 Quantity Due to improved quality of

2 Others eg Rock -3.78 rock. support~ etc. rrotal -10.78

28

C ..

,)

14

_ ___JI ______ • ·-·-. ·-.,

I·

S.No.

1

2

3

- -------- --------·-----~---,------~ -- ------- ----------- ------·--·· ... --- --:------ -- --- ---~···--~------·----------··-·---

Ari'Y\c'l'C-i

p~ 20/z_,'1

BREAK UP OF RS. 6.52 Crs. in 0- Miscellaneous (Rs in Crore)

Item Variation Amount in Rs. Reasons

~ecurity arrangements 1.96

Increase R&M of Vehicles, School, Ambulance etc. others

[Total

lncraese mainly due to 3.04 increase in construction

period of project from 4 vears to 7 years.

1.52

6.52

BREAK UP OF RS. 5.18 Crs. in Other Heads (Rs in Crore)

29

S.No. Item Variation Amount Reasons in Rs.

1 A- preliminary 0.96 Increase on account of consultants fee including charges for preliminary design works.

2 Audit &Accounts 3.87 Increase due to increase in construction period of project.

3 · Others 0.35 Net effective increase on account of B-land (Rs. 0.41 crs.), R-communication (Rs. -0.49 crs), X-environment & ecolog~ (Rs. -1.02 crs}, T&P (Rs. 0.28 crs.) and V receipt & recoveries (Rs. 1.17 crs ).

4 5.18 rrotal

30

15

S.No.

1

2

3

4

5

S.No.

1

2 3

4

5

BREAK UP OF RS. 46.92 Crs. in C-Works

A"fl.l(\e~- r:_

r~ 2-'/2-'1

(Rs in Crore)

Items V;uiation Amount in Rs.

M25/A40 in spillway glacies (detailed 25.48 !engineering) Maintenance of access roads to different 7.76 locations (being in scope of contractor) Increase in reinforcement in Dam etc 1.90

Increase in Instrumentation, 1.30

In other items. ' 10.48

Total 46.92

31

BREAK UP OF RS 12.69 Crs in J- power plant civil works (Rs in Crore)

Item Variation Amount in Rs.

Increase in Class Ill Excavation in HRT 6.00

lncreas.e in Lining of HRT 1.50 Increase in Excavation in Shafts 3.00

Increase in Concreting in Switchyard 1.30 ---

Others 0.89

Total 12.69

32

(

16

S.No.

1

2

Arri 'Y\e):? - .J:­P ~ 2-2--/2-11

. BREAK UP OF RS. 3.80 Crs. in o~ Miscellaneous

Item

Increased R&M of services.

K>thers

rrotal

(Rs in Crore)

Variation Amount Reasons in Rs.

3.19 Increase on account of maintenance and services of Electrification, Inspection Vehicles, school e.tc.

0.61 Increase on account of maintenance o office equipments etc.

3.80

BREAK UP OF RS. 61.37 Crs in E&M Works

(Rs in Crore)

33

S.No. Item Variation Amount in Rs

1 Generating Plant & Equipment 10.34

2 Electrical Auxiliary e.g. SCADA, 23.06 Transformer etc.

3 Mechanical Auxiliary e.g. Drainage & 13.56 Dewatering, cooling water system.Air Conditioning, Fire Fighting system etc.

4 Switchyard Equipment & XLPE cable 2.57

5 Erection & Commissioning 4.34

Others 7.50

rrotal 61.37 (Refer slide 37 for change in

indices.)

34

17

A'Ylrieio-l

(l ~ 2-~ /2--'1

BREAK UP OF RS.1.59 CRS. IN 8- LAND

(Rs in Crore)

S.No. item Variation in Amount Reasons (in Rs.)

01 Land (Hectare) 0.25 Increase on account of land acquisition for power house, penstock, switchyard, adjoining areas for power house.

02 R&R works 1.34 Under estimation in respect of number of houses coming under submergence area, etc. c

1.59 Total

35

,'._";·;.'

· lncr~ase in II-Establishment (R5. lnCr)

SI,· Description Amount Reasons No;·· -1 ICCEA (Sept 2002 PL) 16.36

~;.r~~I -·

2 RCE at Comploetion Cost 179.69

Increase 1:33.33 -.

••. Breakup of Increase .............. i) •. bue to time overrun / ~· Rs. 46.36 Cr (CCEA Provision) /4 Years x 3

Years ·· ··

ii) DA Increase ····~ Rs. 179 .. 69 Cr (RCE Amount) x

••• (30.56%/(1 +30.56%) [Avg increase in CPI (IW) between Sept 2003 & June 2010 is

.. , . 30.56 %}

(ii); \tlfage reliis.ion ~ The increase is attributed to increase in wages of employees due to pay revision

r. w.e.f 01 :01.2001 iv) Expenditure up to Zero date 10.69 · /!\pplicable on actual basis at

CCEA Date: 9 Sept 2003) RCE/Comoletion cost stage. v) Under Estimation @U1 Due to under Estimation

Total 133.33

36

18

SI.No.

1

2

3

'

~

SEWA-11 H.E. PROJECT

Anri~x- '-t A'Y\ f'fl e-x: -I f o...<;p.. 2 t-t ( 2Y1

VARIATION OF MAJOR INDEXES (EA Industry and labour Bureau)

Price Level

CCEA Awarded (Feb Completion

Type of Currency Sanctioned 2004) (July 2010)

Cost % variation (Sep 2002) from CCEA

FREEOUS METALS 144.50 200.30 343.3 (Iron & Steel) (38.62%) (138%)

Labour 485.00 504 824.14 (3.92%) (70%)

Copper Wire Bars 118507.00 165671 342024 (Rs/MT) (40%) (189%)

37

19

0

0 .

\~ :. • M<'\/11.'Y' . ~· f;, '\> l '<)_w

Chairman & Managing Director, KIHPC Ltd. $.ector ~33,. f@ridabad {Haryana).

No.2/5/2009-NHPC Government of India

Ministry of Power

Arme'{-I A..

Po..µ. '/ 6

Shrnm Shakti Bha';'V'a'1 ~_afi Marg, New Delhi, .J:;LJ.10.2015 .

(Kund Attn: Shri A.K. Stairkair, Executive Dorectorr (Planning)

Sll.Qb:e Draft Rep«:1rt Qf Standing Com.mlttee. on Time & Cost overpll"&.ms and ifbdirng the responsibility for delay In cdmmissRonlng of S~wa~u HE Project {120 MW) In J&K Implemented by NHPC.

Sir,

I am directed t9 enclose a copy of OM No.N-14092/01/2015-PAMD dated

23rd September, 2015. received from NITI Aayog and also ID

No.128/1/2015/HPM/1410 dated 22.9.2015 received from CEA, communicating

the comments on the draft report referred to above, for taking further appropriate

action in the matter.

!encl: as above

Under Secretary to th~~~~~ Tel. No;23324357

~.~·

fir~-;:,..-=;--'-.: 4 '1l '.'...q.. .a. ~~

j .~ ''.'!Jb.C ()•1:·,~~,.r<J; ~-; 1 I .a 8 OCT ,f;LJ~~ .I I ~ '

f

··---.:··'.:·,::-: ::···;·:~-·.-··,:~;;·;~:----·::;'\ , ... , ..• 11\1 .......... l\.t ,, .. ,, Ltd. · ·<p1,n1,~) "01. I CMU ~~t~G\1, i

o / m:11m5 l I ~'P FO"' ,, /4 ~

.ff~. t~'! -[( .~'ll"l~I "f :,~ \,.,. '~•"1.~'""~== OQOo9.:;>ooo P,

~·-.,!.'!f;._.}

~ ..... . ,7 ,,,;r ., ii ,. \ ~

.. _······/ ; .-<· .. · -:· ... <. -.~c; .' :.·; ./

.:-. . '.·

Government of India Central Electricity )\uthorilty

HPM Division, 7th Floor Seweil Bhawan, Rama Krishna Pmam

New D~lhi-110 066 *******

~ ..

.

.

.

[~SO : 9001 ~2008]

AVl"'t\e:~- \ A

p~~6

S.ubj~ct: Draft Report of the Standing Committee fot fi)(ing responsibility on time & cost ·. · QVeNun in respect of for fixing the responsibi_iity for delay in commissioning of

. Sewa-11 Hydro- electric" Project' in J&K'implemented .. by·NHPC.

Please refer to MoP letter no. 2/1/2015- NHPC dated 9.9.2015 on the subject rnention~d above. In this regard, the comments on the Draft Report of the Standing.

() - Committee is as under.

_Co~f Overrun:-

-~- There are no specific comments to offer on the matter. However, -it is clarified th~a(R~E at project completion comprises of expenditure already incurred and CEA has. not examined the same as there is no mechanism in CEA to examine such a fait

· a·~conipli expenditure. The responsibility of authenticity and correctnes~ of expenditure ipdlCE;tted in the RCE lies yi.iith the project developer. However, the RCE has been <e~a,mitted- from design angle with respect to appraised scheme at DPR stage and '_sijb.S"equent vetting of design changes and it was communicated to MoP and NHPC vide

":tett~:r· no. 203/4/2015"HPA/3S9-90 dated 25.02.2015.

,.-Tame overrun:-: .. ,_;. · ....... -..

_ As per information available in CEA, the project was commissioned on 23.7.2010 (CoO achieved on 24.7.2010) with total time overrun of 34 months and 16 days and the

Q reasons thereof are found to be iri order.

This issues with the approval of Member (Hydro).

Sh. S.S. Rawat<Under Secretary to the Govt. of lndi§1MoP No.128/112015/HPM/ a=~ i «::)>

' ~\'\c/1/(' / '-ff\~~ 1""' ~'f' / ""'' ~v· ~

·~~ . <lv;ij' i

.. '

~~h~ (Manoj Tripathi) Director (HPM) ·

Dated: 22.09.2015

..

~:

.....

. · ..

··-c)

()

N-14092/1/2015=PAM][) NIT!Aayog

(Power & Energy)

Ari'Y\'I..~ ..- J: A

(?~ 3/6

NITI Aayog, Sarn~ad Marg, New Delhi Dated: 2JYd September .

OFFICE MEMORANDUM

Sid.ll~ Draft Report of the Standing Cmrtmittee for fixing 1·esponsibility .on tim~ & cost over-nm in respect of for fi~ing tile responsibility fo:r delay in commissionilllg of Sewa-11 Hydro~eJectric Project in J&K implemented by NHPC. .

The undersigned is directed to refe1· to Mio Power's 9.M. No. 2/1/2015~NHPC,

dated 9th September, 2015. It is to state that Power & Energy Division ofNITI Aayog

h~ examin~d the Standing Cominittee Report on the above mentioned subject. The

NITI Aayog is concurri~g the Report, with the request to incorporate the following comments in. the final repol't. "It.has been noted that the REC proposal has been brought

. . - .

· fo1· appraisa:ltapproval at):et 5years· ·of the coitiiiiissiO.riiitg of.ihe .. pr<)ject. ·M:o:P may

.. streamJine the system of processing of Revised Cost Estimate (RCE) between PSU and

, CEA/CWC to avoid consid.erable delay in processing. RCE can be brought for appraisal 1 I approval timely. as per laid down procedure i.e before exceeding the expenditure

· beyond the ~anctioned cost". This has the approval of competent authority

Slhlird. §,§, R$Witllt9

Under Secretary to Govt. of fodia, Ministry of Power, Sh.ram Shakti Bhawan Rafi\ Marg, New Dellhi-1

~ ~

(:~~~/ ~· 'Oif"' ~~·< 11~ .• .~"' -7'>o.,._. ..... 1 '\

~-~·-' ,) ~;\ \, \

i to ih---. 'ii"'\. .~--

\\J\.\J~ (M. VijayaKumar)

Jo&nt Adviser

, ..

• ~~ wo-~;:v! :,fjf!,i;Y, ii:.:.i°f:t:d-'" , ,:[ ~} (A Govt. of/ndla Enterprl~) ' : : • ~-• • IS0-9001, 14-001 & IS 18001 Certlflod Comp•ny A "1 'lH' - ::r:. A

· · . CIN: L40'101HR1975GOI032564 ·

· , i o - s P~ YI 6 ~3i/Ref:NH/PD/ Sewa-l i/ · a S ·cWir6TI~ /Faridabad · Date: '19. 'i 0.20'15

'q;l~ fflEL ~~--

Sh. S.S.Ra•."Jat Under Secretaryp Grn7

NHPC 1007 Ministry of P@W®tr Shram Shakti ll3hawa111J, Rafi Marg 7 New Delh8°~ ~ t0004l

So.nib: IOtraift Report of the Sta1111dlill1lg C©mma~tee ©li'il 1'ime ~ll'!ld c©st ©veirll'l!.BB'il$ <SJl11ldl fixing the rrespcmsibmty for delay nD'il ©ommissno11118111l@ off Sewa=ff~ HIE 1Project(120 MW) illil J&K impieme111tedl by NHPC.

Sor?

This is with reference to MOP's letter No. 2/5/2009 dated 07 .1 O .2015 vide which the comments of NITI Ayog and CEA on the draft report of Standing Committee were forwarded, to· NHPC for necessary action.

In this regard, kindly find enclosed here with the replies to the observations of CEA and NITI Ayog in half margin statements for the information and necessary action please. , ·

Thanking You,

IEITTl©~: As above.

Yours faithfully?

~~ (S.H.Zargar)

CC!Mef 1Elrllgnll1leeir (POg,)

~-;;i;r~lr -~" -~,f.~\~:/!'r~l'r er~:, ~\Ei_;33 ~if~:<>rT~~-~12-:003 (~ft1.i-rUif) =·~·~···~·~··---~---r--~·--

f~.:~·gie·i. c,·rficEi ··12 ''.J ()~\3(H.Af~·Yi.\.i'",l/\}

i,-; -s1 C'1 !CA Bi.E. /F: .. :\~'<:2~2 .. 779.:.~ ·'J

1\lf-··lP('; ()FFJCE {~OlVl?L.E)\, -3.EC~T(JR-33: f-'}\!C,;\El!\D~

",'-','1T)/'.:°'i]CO. R""\;.'" 2~;:;~1f.·"'" 1TEi f::\"·:·:i,1J~:'::'J ·1 1\lFJO<' i1'.1" ti~ ~• I \ '..,~ ,,; . • ~ ...., l \ I r -=· . .,... -.......! .• J f -. ·-' , <I -.,/ 1 j') Cf';~!

·. ,!>

Aw'''t~ - J:A. . ""~ >16 3wb,, IDlirmf~ H;epl(j)JJ"il !fJ>f ~!Ince §[:mmilirrng \Ci~lfn11irlrnn[1ee ·.(})llll ·:rilITTnue & (!::Cl}§tt <£DiY<eu' rnm1 lbl.t.ellidl f@r lfod!lilg \rrm,e

irteltjplf)lnl§Hlbmtty foil" 1dleil~y llllll ie@mmn§§ll<l:DIID.Hllllg @ff St.eWSJ.-H Hyrllr@-t.ellt.edll"ntr, JP'irojted§. RID\ .~&K.

Rd:- Ministry of JPower Herter ffo US/2009-NHJPC dated 07.10.2015 __ gm• ti AA@ii .. ' i@F!ifis '6UfbiSAf94 "b'Md¥ 9MHW&M@fll!i'.+k&iri#b ifl frifi?M H BP ,,ry

5,No. Obself'\f~tiollil Riep~y

CEA .Obsei/'vatftotn1s

(i) 11 Cost Ovell'll'!Ulll'il

(ii)

There are no specific comments to

offer on the matter. However, it is

clarified that RCE at Project

completion comprises of expenditure

already incurred and CEA has not examined the same as there is no

mechanism in CEA to examine such

fait accompli expenditure. The responsibility of authenticity and

correctness of expenditure indicated

in the RCE lies with the project developer. However, the RCE has been examined from the design angle

with respect to apprise scheme at DIPR stage and subsequent vetting of

design changes and it was

communicated to MOP and NHPC vide letter no 203/4/2015~HPA/389-90 dated 25.02.2015.

Tam@OV@li'if'IUllTil ~ . ._.....,

--Matter of fact--

As per. information aivairnabie in CEA, II --Mcl'~er of iFaict--

the Project W:a.§ Commossiotned on I I _ 23.07.2010 (COD aicihieved OY1. )1

l 24J)7.2010) witfru totail ~im'e 1overnffH:if ii ii 34 months ~uid 'l 6 d~ry-s aui1ol 1th~ !I 11 l . ? ? • • " ' 11 !1

h II 1ne©isons th·~reo-'r .21re 'f'OILffil'l~ :to toe in .ii Ji JI i ii ! . orr-der. . J 1 llo.,,.,,.""''·"""""'"'"'·"'L"""=.~=·="'-'"-="'""'·~=="'""'=="'"'"'='--·7.,,'"""·'"'"'·'·"''"""""'""""J,"'=="'"-''""·7'""'~'·""""'·="""'"''""'·"=="""'""===="'"'= .. ===•-==·""'"''·'·"·~""·""Ji

AYirf\l'( --J: A.

-=~- - . .. - .. - -~,. R~ ~·~-[ q Nm .iWOO Ol>se1Va_li<>11 _ _JI I · I · (i) The· Niti Ayog is concurring the MOP may take a view in this regard.

Report, with the request to incorporate However, it is submitted ~hat Interim RGE

the following comments in the final was submitted by NHPC to MOP/CEA well report.

"It has been: noted thait the RCE

proposa~ has. been brought for

appraisal/approval after 5 years of the

commissioning of the project MOP may streamline the system of the processing of revised cost estimate

(RCE) between PSU's and CEA/CWC

to avoid considerable delay in

processing. RCE can be brought for

appraisal /approval timely as per laid

down procedure i.e before exceeding

the expenditure beyond the

sanctioned cost. n

before commissioning of project in June

2009. But due to procedural requirements 11

because of involvement of various statutory I

authorities, besides CEA & MOP Appraosal/Approval of the RCE has got delayed. The same stands deliberated at the

point no 1.4 & 1.5 of draft Standing

Committee Report.

ABSTRACT OF COST REVISED COST ESTIMATE OF SEWA-11 Power Station, Mashka, J&K (3X40 MW)

CCEA RCEat Inadequate/ Change in

s. Description Sept 2002 Completion Variation

Over provision Scope/ No Due to Change in

PL Cost Others Quantity Design

A. CIVIL WORKS 1 DIRECT CHARGES

I-WORKS A - PRELIMINARY 6.82 8.14 1.32 0.36 0.96 B-LAND 5.14 13.26 8.12 1.58 0.41 C-WORKS 101.23 152.40 51.17 46.92 -30.00 J-'POWER PLANT CIVIL WORKS 218.09 275.98 57.89 12.69 -10.78 K - BUILDINGS 15.93 23.85 7.92 1.22 1.94 0- MISCELLANEOUS 20.88 36.58 15.70 3.80 6.52 P - MAINTENANCE 3.66 12.88 9.22 6.57 Q-SPL. TOOLS & PLANTS 24.21 7.58 -16.63 -1.71 -14.91 R-COMMUNICATION 30.60 33.57 2.97 0.43 -0.49 X - ENVIRONMENT & ECOLOGY 11.99 10.96 -1.03 -1.06 -1.02 Y - LOSSES ON STOCK 0.91 0.01 -0.90 -0.90

TOTAL OF I - WORKS 439.46 575.21 135.75 3.73 59.61 -40.80 11- ESTABLISHMENT 46.36 179.69 133.33 32.90 34.77 Ill -TOOLS AND PLANTS 4.08 4.36 0.28 0.28 IV - SUSPENSE V- RECEIPT & RECOVERIES -15.46 -13.88 1.58 0.41 1.17

TOTAL DIRECT CHARGES 474.44 745.38 270.94 37.04 59.61 -4.58 2 INDIRECT CHARGES

I -CAPITALISED VALUE OF ABATEMENT OF LAND REVENUE II - AUDIT & ACCOUNTS CHARGES 4.08 10.01 5.93 3.87

TOTAL INDIRECT CHARGES 4.08 10.01 5.93 3.87 TOTAL CIVIL WORKS 478.52 755.39 276.87 37.04 59.61 -0.7.1

B. ELECTRICAL WORKS 118.52 203.88 85.36 61.37 c. TOTAL NET COST WITHOUT IDC & FC 597.04 959.27 362.24 98.41 59.61 -0.71 D. IDC & FC 68.42 149.55 81.13

TOTAL COST WITH IDC & FC 665.46 1108.82 443.37

Price Escalation

0.07 28.00 44.11

3.10 5.38 2.65

2.36

0.00 85.68 42.06

127.74

2.06 2 .. 06

129.80 18.69

148.49

(Rs. in Cr)

Addition/ Deletion

5.46 3.61 5.08 1.44

0.67 1.05

17.31 23.60

40.91

40.91

40.91 -

Change in SL

0.59 2.64 6.78 0.21

10.22

10.22

10.22 5.31

15.52

z z m ::< c...

~

Annex-K

P-1/1

Price Variation

Break up of Rs. 148.49 crore

(Rs. In crore)

SI. Description CCEA Variation No. Sep 2002

1 C-Works 101.23 28.00

2 J - Power Plant Civil Works 218.09 44.11

3 Other heads 127.55 57.69

Total Civil Works 478.52 129.80

Electrical Works 118.52 18.69

Total (Civil+Electrical) 597.04 148.49

•

SI. No.

I

II

Ill

Statutory Levies

Break up of Rs.15.52 Crore

Description CCEA Sep 2002

Civil

C-Works 101.22

J - Power Plant Civil 218.09 Works Others 154.07

Total (I) 473.38

Electrical 118.51

B -Land (NPV towards 5.14 forest land)

Grand Total (1+11+111) 597.03

Annex-L

(Rs. In crore)

Variation

2.64

6.78

0.21

9.63

5.30

0.59

15.52

S.No.

(i)

(ii)

(iii)

(iv)

Interest During Construction

Breakup of Rs. 81.13 crores

Reason for increase CCEA Feb 2005

Increase due to consideration of Financing Charges (FC)

Decrease in Interest rate on term loan from 10% (CCEA) to 9.24% (Actual weighted) 68.42

Increase in Construction period

Increase in Cost

Total

Annex-M

Page-1/1

(Rs in Crore)

Variation Amount (Rs. in Crores)

1.85

-5.01

68

16.29

81.13

Annex-N

Pg-1/1

Addition I Deletion

Break up of Rs. 40.91 crore

(Rs. In crore)

SI. Description CCEA Sep 2002 Variation No.

1 8-Land 5.14 5.46

2 C-Works 101.23 3.61

3 J-Power Plant 218.09 5.08 Civil Works

4 Establishment 46.36 23.60

5 Others 58.50 3.16

Total Civil Works 478.52 40.91

SI. No. 1

2

3

4

5

6

7

8

Description

C-Works a) Increase b) Saving

Quantity Variation

Breakup of Rs. 58.90 crore

J - Power Plant Civil Works a) Increase b) Saving

K - Building

0-Misc

P-Maintenance

Q-Spl T&P

Establishment

Others

Total

Annex-0

Pg-1/1

(Rs. In crore)

Variation

46.92 -30.00

12.69 -10.78

1.94

6.52

6.57

-14.91

34.77

5.18

58.90

Annex-P

Pg-1/1

Variation of WPl's

Price Level

CCEA Awarded (Feb Completion Sanctioned 2004) (July 2010) %

SI.No. Type of Currency Cost variation from (Sep 2002) CCEA

1 FREEOUS METALS 144.50 200.30 343.3 (Iron & Steel) (38.62%) (138%)

2 Labour 485.00 504 824.14 (3.92%) (70%)

3 Copper Wire Bars 118507.00 165671 342024 (Rs/MT) (40%) (189%)

SI. No.

1

2

3

4

Over I Under Estimation

Break up of Rs. 98.41 Crore

Description

Electrical Works

0-Misc

Establishment

Others

Total

Annex-Q

Pg-1/1

(Rs. In crore)

Variation

61.37

3.80

32.90

0.34

98.41

Annex-R

Break up of Establishment

(Rs. In Crore)

SI. Description Amount Reasons No.

1 CCEA (Sept 2002 PL) 46.36

2 RCE at Comploetion Cost 179.69

Increase 133.33

Breakup of Increase

i) Due to time overrun 34.77 Rs. 46.36 Cr (CCEA Provision) /4 Years x 3 Years

ii) DA Increase 42.06 Rs. 179.69 Cr (RCE Amount) x (30.56%/(1 +30.56%) [Avg increase in CPI (IW) between Sept 2003 & June 2010 is 30.56 %]

iii) Wage revision 23.60 The increase is attributed to increase in wages of employees due to pay revision w.e.f 01.01.2007

iv) Expenditure up to Zero date 10.69 Applicable on actual basis at (CCEA Date: 9 Sept 2003) RCE/Completion cost stage.

v) Under Estimation 22.21 Due to under Estimation

Total 133.33

.,

~ .• ;

0

()

\_ ..

Ar1~_,_· S _, __ .. ______ ... .; ~a .. y2-

Details of Quarterly Performance Review Meetings·

Meeting held on 21.11.2007:- It was discussed that in Sewa-11 besides the

technical problems in the Headrace Tunnel, the progress has suffered due to go­

slow tactics of contractor's labour and problems created by local people, and as

a result of these, the project completion is now likely to be delayed to June, 2009.

NHPC had written a letter to Chief Secretary J&K. After detailed discussion

Secretary (Power) desired that the Project should be completed by

December,2008 in any case and a makeup plan should be prepared by NHPC to

cover up the slippages.

Meeting held on 16.01.2008:~ It was discussed that face 6&7 of HRT are critical

faces and balance 900m of HRT excavation will be done by September,2008 with

progress rate of 11 Om/month. Concreting of HRT will be completed by March'09

with 6km. of concreting of HRT by Sept'08 and balance 4 km. by 1st week of

March'09. It was indicated that first unit would be commissioned by last week of

March'09 (with best effort). All the t.hree units will be commissioned by June'09.

Meeting held on 07.03.2008:- NHPC informed that the HRT boring is likely to

take another 6 to 7 months; concrete lining will also take about 7 months @400 to

600 m per month. Balance lining of 4800m stretch is still to be completed between

faces 6 & 7. As such, the project may slip even beyond the now anticipated

completion date of June'09. NHPC however assured that all out efforts are being

r:nade to speed up the work and complete the project by the scheduled date.

NHPC informed that the work is suffering due to bad geology encourtered in the

tunnel and also due to strike and agitation by the labour force of M/s G1L.

Meetingheld on 02.06.2008:- it was discussed that the excavation of HRT is

expected by Oct'08 lining by April'09 reservoir filling by May'09 · and

commissioning of Project is expected by June'09. There may be a possible delay

of 1-2 months. The Labour Union, particularly the CITU is hampering the work

very badly. Recently some agreements have been signed with the Unions,

following which the progress is expected to improve. However, CEA pointed out

that at the present rate of excavation and concreting, in this small diameter tunnel

the completion date at the present trend works out to be around Dec'09. Issue

was deliberated in detail. Secy(P) desired that since no project was due for

commissioning in 2008~09, NHPC should strive to complete all the major works of

Sewa~ll by March'09.

. ·\

..

\

l /

/~ -. I

., .. \ i '; . ! I l •.\ i '\• ! i j .•.

1·

1: \ F l

k0 I ! l

r-i ::.

I: \ l. " \ ..

" . A·-'"'\·i····>< ri"' ry ... ~ i<l- . v·:::~ """---~---~·-~ 1 \ I .

\!'G'Y:J \ \ !!i't!eOl!!I held on 07.10.2008:-lt was Informed that ihe ~$in bottl~eck .in Sewa- {

f -Jc . . . ~

II is the overt concreting of about 6.5 kms which has to be completed by May'09: ,.

This includes concreting of more than 4.2kms between face VI & VII, the

excavation of which is expected to be completed in Oct'08. On a query by

Secretary (Power) it was explained that three gantries each in faces VI & VII are

planned to be deployed. Secretary (Power) desired that concreting works should

be carrie9 out round the clock in three shifts so as to ensure at least 400m overt

concreting per month to complete the work so the· Project could be completed iP

June,'09. ·· ··:

Meeting held ·on 09.09.209:· Secy.(Power) asked NHPC to ensure

commissioning of Sewa-11 by Dec.2009 for which close monitoring should be done

on monthly basis. Member (Hydro) informed that there may\ be delay of 2-3

months beyond Dec.2009 in commissioning orsewa-11.. NHPC\explained that 1

unit of Sewa-11 · will be commissioned in Dec.209 and re~aining · units in

Jan/Feb.2010. It was decided that Sewa-11 should be col'nri'iissioning in all '

respects by January,2010. '"'-.., _

Meeting held on 19.01.2010:-1.t was informed t~at 1st Unit will be\commissioned

in January,2010 and 2nd & 3rd unit in Feb 2010. Secretary(Powd,r} desired that

commissioning dates should be adhered to.

*•*****

. .. 1

>j · I

.: .~

·i.

()"···1i ,. ; I

'~ •' ... ; l . I .' ! !

.:,1 , .

. } f

•. ,. ·.·.(:.Jf

!

~

()

·~ ·~

I t

.:•

.!;

.. ···-'

S.No. Observations Reply

1. The project has been declared under commercial

operation w.e.f. 24.07.2010. It has generated

2543.01 MUs worth Rs. 1175.49 crore till 31st Oct’

2015

Matter of Fact

2. The Committee noted that the Revised Cost at

(Completion Cost) of the Project is Rs. 1108.82

Crore, which has implied an excess cost of Rs.

443.36 Crore i.e. 66.62% of sanctioned cost of Rs.

665.46 Crore. The cost overrun excluding Price

Escalation (PE), Statutory Levies (SLV) and ERV,

within the original approved time cycle out of total

excess cost of Rs 443.36 crores ,works out to

Rs.388.65 Crore which is 58.40 % higher than the

sanctioned cost. The Committee has also observed

that in the total cost overrun of the project, an

increase of Rs. 245.14 crore due to fiscal factors and

the consequential increase in IDC & FC whereas

project cost has increased by Rs.198.23 crore due

to other physical factors e.g. addition / deletion,

quantity variation and over/under-estimation etc,

during execution besides establishment which are

explained in the report.

Matter of Fact

3. The Committee noted that the time overrun of 34

months & 16 days has resulted in an increase of

Rs.170.81 Crore which is due to fiscal factors and

consequential increase in Interest during

Construction (IDC) and Financing Charges (FC).

The Committee noted that the time overrun of 34

months & 16 days was due to hindrances such as

Noted

geological, law and order etc. as given at para 3.1

which were found convincing by the Committee.

4. On examining the reasons of cost and time overrun,

Committee is of the considered opinion that reasons

for cost and time overrun were beyond the control of

any agency or person, hence no individual /agency

can be held responsible for the same.

Noted

ANNEX-2

Annex-3

Annex-4

Page 1 of 5

S. No. PARTICULARS NAME OF PARTY/WORK

CONTINGENT LIABILITIES PRESENT STATUS

1 2 3 4 5

A. CAPITAL WORKS

a) CASES AGAINST WHICH ARBITRATION AWARD/ COURT ORDER HAS BEEN PASSED

1 NIL NIL

SUB TOTAL NIL 0.00

b) CASES UNDER ARBITRATION/ADJUDICATION.

I Rock cutting at Adit-II (Road from RD 840-1435 KM.) Sh. Abdul Rashid Mallick 0 The arbitration award of Rs 6,39,558/- has been made against NHPC on 20.06.2016.

IIClaim under Workmen Compensation Act Sh. Panjku Ram S/o Sh. NantRam & Others (Case was dismissed by the ALC Kathua. Applicant filed the writ petition in the High court of Jammu, summon received on 16.11.2012.

Sh. Panjku Ram S/o Sh. NantRam & Others 0.04 The applicant has filed an appeal petition in Jammu High Court, but not yet listed for hearing.

Next hearing date not fixed.

III Claim on account of various disputes occurred on finalisation of bill for Lot SW-1 GIL 159.01

IV Interest on claim of GIL updated upto 31.03.2016 GIL 40.89

V Claims of JKPDC regarding handing over of SEWA-II to NHPC JKPDC 0

VI Compensation claim against extended period including warranty charges BHEL 0

SUB TOTAL 199.94

c) CASES UNDER EXAMINATION BY THE MANAGEMENT

I NIL NIL

SUB TOTAL NIL 0

SUB TOTAL- CAPITAL WORKS (A) 199.94

B. LAND COMPENSATION CASES

I NIL NIL

SUB TOTAL- LAND COMPENSATION CASES (B) NIL 0.00

C OTHER CASES NIL

SUB TOTAL- Disputed Tax Matters (D) NIL 0.00

I NIL NIL

SUB TOTAL- OTHER CASES (C) NIL 0.00

GRAND TOTAL ( A+B+C) 199.94

Annex-5

Amount in Crores

The evidence/cross examination of respondents witness is in progress which shall becontinued in 26th and 27th hearing scheduled to be held on 18/07/2016 and 19/07/2016.The Arbitration award is expected by March 2017.

SEWA-II HE PROJECTContingent Liabilities as on 30.06.2016

Annex-6 Page 1 of 2

Annex-6Page 2 of 2

Annex-7Page 1 of 2

ANNEX-7Page 2 of 2