Jetpur Somnath Tollways Private Limited
JSTPLI2014/417
30 June 2014
National Highways Authority of India
301 ~ 304, Krishna - Con ~ Arch — 1
Plot No. 9, Kotecha Chowk
University Road, Rajkot — 360007
Kind arn: Mr. R.S. Jhanwar
Dy. General Manager & Project Director
Dear Sir,
JSTPL
Reg: Four laning of Jetpur-Somnath Section of NH 8D from Km. 0.000 to Km, 127,600 in the
State of Gujarat to be executed on BOT (Toll) Project on DBFOT Pattern under NHDP
Phase Ill ("Project") - Payment for utility shifting bills
Ref: 1) Concession Agreement (CA) executed between NHAI and JSTPL on 7 February2011
2) NHAI letter no: NHAIPIU/RJK/NH 8D/2014/D-1685 dated: 02 June 2014
“This has reference with your letter kept at Sr.no-2 above and would like to inform you the following:
1. Considering the importance, of removal / shifting of utilities for construction of proposed
Project Highway; we have fully geared-up for taking up the utility works much earlier to the
declaration of the “Appointed date”.
2. Accordingly, with an advance planning, we have procured the material (conforming to PGVCL's
standards) required for electrical utility shifting in the year 201-12 itself and the same has been
kept in our Go-down for timely consumption as per PGVCL's plan. NHAI shall appreciate the
pro-active action taken by JSTPL in procuring the material well in advance. But we are in receipt
‘of your cited letter stating that the “old poles of existing electrical ines were used and claimed
payment for new material’. In this connection, we would like to clarify that the physical
appearance of the material which is preserved in our go-down which is consumed after 2 years
of the procurement would have created this impression else it is confirmed that we have not
Used any existing poles / material for this utility shifting purpose.
3. Further, we wish to inform you that we have been executing the Electrical utility shifting works
as per the conditions stipulated in the Agreement drawn between PGVCL & NHAI (on 30 April
2012). All the material proposed for said works are conforming to the specifications &
standards of PGVCL. NHAI has paid 15% of the estimates towards the charges for supervision
to be carried out by PGVCL and accordingly upon completion of works, a detailed inspection is.
being carried out by the Electrical Inspector of PGVCL and accordingly the certification has
been done. Further to the certification of completed job by PGVCL, the erected line has been
handed over to PGVCL and the same has been put on use for the intended purpose.
4. Also, we re-affirm that the above said process is firmly adopted and till now there were no
such observations from PGVCL's end for the portion of works completed so far. But we are
failed to understand the process in routing our Utility shifting RA Bills (which stands certified by
PGVCL) through Independent Engineer (“IE") which is creating a mess in the bill certification
process. On receipt of our RA Bill, IE is deducting sums on arbitrary basis and using his own
he
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Office : 301, 3rd Floor, Balaji Palace, Madhuram, Timbawadi, Somnath Highway, Junagadh, Gujarat
wwwuniquestinfia.com
(East), Mumbai - 400051
362 001logic & assessment of works without consulting JSTPL and understanding the background of
actual executed work. This is further compounded with further deduction of sums by NHAI
while making the final payment to JSTPL.
We are unable to understand your approach in involving two agencies ie. PGVCL & IE for
certification of our utility shifting bills knowing a fact that PGVCL is the principle authority to
certify the works (refer to the Agreement signed between PGVCL & NHA)). Further, we request
you to keep only one agency involved in complete process of utility shifting job right from
inspection, supervision, testing and certification of works executed 50 as to avoid unwarranted
deductions explained in next para.
‘The various heads on which our Utility RA Bills are being underpaid by NHAI are highlighted in
Table-0! below:
Table-01: Various heads on which the payment
sr. ‘Approx.
no | Peseripdon | holdup
I. This amount is kept on hold by NHAI arbitrarily
Arbitrary ‘without any specific reason.
sums are kept
1 Jon hold | 10-28% | 2. Bills submitted by JSTPL are those bills certified by
without any PGVCL after conducting detailed inspection at site and
reason after issue of Completion certificate for that portion of
works. Hence JSTPL is entitled to get full payment.
] T. Credit nate for the salvage of old material which are
put in use by PGVCL are provided with a credit note in
2. | Salvage for the | joy, respective RA Bil
cold material
2. Hence keeping payment withhold on account of salvage
‘of old material in our every RA Bills not justified,
T. There is no provision for such deduction in the
3 | Retention ee ‘estimates provided by PGVCL and hence keeping sums
deposit withhold on account of Retention Deposit is not
tenable.
‘With above deductions, amount kept on hold by NHAl in our RA Bills submitted for the period
ending Feb’2014 accrued to Rs 87,90, 188 /- (Say Rs 88 lacs) which arrives to 25%-30% of
the submitted bill amount. Payment kept on hold by NHAI is tabulated and enclosed as
“Annexure-A for your ready reference.
. This is creating a huge impact in execution of utility shifting works by various agencies as they
are unable to withstand 25%-30% hold-up of the RA bill sums for the works which stands
completed. It may please be noted that the above withheld amount may please be reimbursed
{0 us in upcoming RA Bil falling which the executing agencies will not be able to continue the
‘work and we will not be held responsible for any sort of delays arising of this. Further, it may
please be ensured that there will be no such deductions in making the payment for our future
RA Bills.
. Further, the agencies presently working in shifting of utilities are incurring more expenditure
than that of the PGVCL's cost estimate as the estimates derived by PGVCL are based on 2009
rates and does not have any provision for price escalation. It is a known fact that Utility shifting
weworks have been delayed due to delay in land acquisition and hence additional financial burden
fon account of the increased cost shall be compensated by providing 5% escalation (min.) for the
portion of works executed from Jan’2014 onwards. Hence, you are requested to take-up this
escalation proposal in the right perspective and in the best interest of the completion of works
We trust you will appreciate our concern and take necessary action on priority.
Thanking you,
Yours faithfully,
For Jetpur Somnath Tollways Pvt. Ltd.
(Authoifzed Signatory)
Enck Annexure-A
ce:
I. Sh. RK Bansal, Chief General Manager (T), Regional officer (Gujarat), National Highways
‘Authority of India, 502-B, South wing, Megh Mahar, Sector-Il, Gandhinagar - 382 01 |
2. Sh. N-C Saxena, President, M/s Intercontinental Consultants and Technocrats Pvt. Ltd., A-8,
Green Park, New Delhi -110016
3. Mr. Mario Daos, Team Leader, Mis Intercontinental Consultants and Technocrats Pvt. Ltd.
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