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CONSTRUCTION AGREEMENT

This Construction Agreement is signed at Bangalore on this the 18th day of March

2004

BETWEEN

HASSAN MANGALORE RAIL DEVELOPMENT COMPANY LIMITED, a

company incorporated under provisions of the Companies Act, 1956 in order to

implement a project involving gauge conversion of the railway line between

Hassan and Mangalore to a broad gauge linkage, having its registered office at

Room No. 5, 5th

Stage, M.S. Building, Bangalore-560001, India (hereinafter

referred to “HMRDC” as the case may be, which expression shall include all its

successors in business) of the FIRST PART

AND

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The PRESIDENT OF INDIA, acting through the Ministry of Railways, through

its nominated agency, namely South Western Railway (hereinafter referred to as

the “SWR” as the case may be, which expression shall include all its successors

and permitted assigns) of the OTHER PART.

WHEREAS

A. HMRDC has entered into the Concession Agreement with MOR for a period

of 32 years for the development, financing, Construction, Operations and

Maintenance of a Broad Gauge Track between Hassan and Mangalore;

B. In order to fulfill its construction obligations under the Concession

Agreement by the creation of New Assets, HMRDC intends to appoint an

engineering, procurement and construction agency for carrying out the

Construction/ Construction Works for the Project and creation of New

Assets (“EPC Agency”);

C. HMRDC has invited SWR to be the EPC Agency;

D. SWR has agreed to be the EPC Agency.

NOW THIS AGREEMENT WITNESSESTH AND IT IS HEREBY AGREED

BY AND BETWEEN THE PARTIES AS FOLLOWS:

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1.0 PRELIMINARY

1.1 Definitions and interpretations

In this Agreement, the following words and expressions shall, unless

repugnant to the context or meaning thereof, have the meaning hereinafter

respectively assigned to them:

“Affected Party” shall have the meaning set out in Article 15.

“Agreement” means this Agreement and any amendments thereto made in

accordance with the provisions contained in this Agreement.

“Applicable Law” means all laws, promulgated or brought into force and

effect in India or the State of Karnataka or the concerned municipal/local

government bodies/ authorities including regulations and rules made, and

judgments, decrees, injunctions, writs and orders of any court of record, as

may be in force and effect during the subsistence of this Agreement.

“Applicable Permits” means all clearances, permits, authorisations,

consents and approvals required to be obtained or maintained under

Applicable Laws in connection with the design, engineering, financing,

procurement and construction of the Project Railway during the subsistence

of this Agreement.

“Appointed Date” means the date of signing this Agreement.

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“BG” or “Broad Gauge Track” means broad gauge railway track, which

shall in turn mean that the distance between the two parallel rails of the track

is 1676 mm.

“Change in Law” means the occurrence of any of the following after the

Appointed Date:

a. the enactment of any new Indian Law;

b. the repeal, modification or re-enactment of any existing Indian Law;

c. the commencement of any Indian law which has not come into effect

until the date of this Agreement;

d. a change in the interpretation or application of any Indian Law by a

competent court of law

e. any change in the taxation laws

“Commercial Operations Date” or “COD” means the date on which the

safety certificate has been issued for freight operations by Chief Engineer

(Construction), SWR

“Commissioning” means:

a. In the case of commissioning of freight operations, the issue of the

safety certificate by the Chief Engineer (Construction) of SWR; and

b. In the case of commissioning for public carriage of passengers, the

issue of the safety certificate by the Commissioner of Railway Safety,

Bangalore.

“Company” means HMRDC.

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“Completion Cost of the Project” means the final cost of construction to

be incurred for completing the entire scope of work for Commissioning of

the Project Railway for regular operation of passenger trains as assessed

after finalisation of all the payments to SWR and other charges having been

incurred for completion of the work on New Assets and will be the cost

payable by HMRDC to SWR for executing the work of Project Railway

under this agreement.

“Construction” means and includes all activities required for

Commissioning the Project Railway.

“Construction Period” means the period beginning from the Appointed

Date and ending on the Commissioning.

“Construction Works” means all works necessary for converting the

existing meter gauge railway line between Hassan and Mangalore to a broad

gauge rail line, and to do all other acts that are incidental and related there to

the development of the Project Railway in accordance with this Agreement.

“Construction Progress Review Board” (CPRB) means the Board

consisting of three members, one of whom shall be the Chief Executive

Officer of HMRDC and the second shall be the Additional Member (Works)

of MOR and the third be the Chief Administrative Officer (Construction),

SWR to review the progress of the works during the Construction Period.

“Detailed Estimate” means the detailed cost estimate approved by Ministry

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of Railways dated 27.12.2002 and amounting to Rs. 274.71 Crores

prepared by SWR for the design, engineering, procurement, construction and

commissioning of the Project Railway.

“Document” or “Documentation” means documentation printed or in

written form, tapes, discs, drawings, computer programmes, writings,

reports, photographs, cassettes, or expressed in any other written, audio or

visual form.

“Drawings” means all the drawings, calculations and documents pertaining

to the Project Railway.

“D&G Charges” means directional and general charges as per extant

instructions for detailed estimates issued by MoR and prevalent at the

relevant/appropriate time.

“Encumbrances” means any encumbrances such as mortgage, charge,

pledge, lien, hypothecation, security interest, assignment, privilege or

priority of any kind having the effect of security or other such obligations

and shall include without limitation any designation of loss payees or

beneficiaries or any similar arrangement under any insurance policy

pertaining to the Project Railway, physical encumbrances and

encroachments on the Project Area where applicable herein.

“EPC Agency” means the engineering, procurement and construction

agency for carrying out the Construction/ Construction Works for the Project

and creation of New Assets;

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“Escrow Account” means an account opened with an escrow agent by

HMRDC and operated by an authorised representative of SWR, to enable

SWR to discharge its financial liabilities arising out of the works undertaken

for the construction of the Project Railway.

“Escrow Bank” means Bank to be mutually agreed upon by SWR and

HMRDC for the purpose of depositing into the account the monthly payment

to SWR by HMRDC.

“Existing Assets” means and includes the land, station buildings, MG

formation, bridges, and all other assets alongwith the work previously

carried out by SWR till 23.8.1996, which already exist in the Project Area as

part of the rail network, and which will be used for the BG network between

Hassan to Mangalore but excludes the assets and materials such as, but not

limited to, MG rails, sleepers, fastenings, signalling gears and electrical

equipment, and other non-operational assets like staff colonies, welfare

structures and non-operational land/building which are not required for

Gauge Conversion.

“Force Majeure” or “Force Majeure Event” means an act, event,

condition or occurrence as specified in Article 15.

“Freight Traffic ” means the bulk cargo, liquid cargo, container cargo and

any other cargo in whatsoever size or nature for the rail movement on the

Project Railway.

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“Gauge Conversion” means the conversion of an existing meter gauge

track (with a distance of 1000 mm between the two parallel lines of the

track) to broad gauge (with a distance of 1676 mm between the two parallel

lines of the track).

“Good Industry Practice” means those practices, methods, techniques,

standards, skills, diligence and prudence which are generally and reasonably

expected of and accepted from a reasonably skilled and experienced operator

engaged in the same type of undertaking as envisaged under this Agreement

and acting generally in accordance with the provisions of the Railways Act,

1989 and shall inter alia mean good engineering practices in the design,

engineering, construction and project management and which shall be

expected to result in the performance of its obligations by the HMRDC and

in the operation and maintenance of the Project Railway in accordance with

this Agreement, Applicable Laws, Applicable Permits, reliability, safety,

environment protection, economy and efficiency.

“GOI” means the Government of India.

“GOK” means the Government of Karnataka.

“Governmental Authority” shall include GOI, GOK, any municipal or

local government, or any other department under the control of GOI or GOK

having jurisdiction over all or any part of the Project Railway or the

performance of all or any of the services or obligations of HMRDC under or

pursuant to this Agreement, and having the authority and jurisdiction to

frame laws and rules relating to the Project.

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“Lenders” means the all-India financial institutions, scheduled commercial

banks, bonds or debenture holders, including their successors and assigns,

who provide finance to HMRDC for any part of the Project.

“Maintenance” means all activities associated with standard maintenance

procedures on a similar line as prevalent in the Indian Railways for all

aspects concerned with train movement, including but not limited to

maintenance procedure for track and structures, depots, rolling stock, motive

power, signalling and telecommunication. In addition, it will include any

emergency or out-of-course repair or restoration activity. Necessary periodic

and other inspections regarding maintenance and safety procedure shall also

be included.

“Material Adverse Effect” means any act or event materially and adversely

affecting the ability of either Party to perform any of its obligations under

and in accordance with the provisions of this Agreement.

“Material Breach” means a breach by either Party of any of its obligations

under this Agreement.

“Material Modification” shall have the same meaning as provided for in

Code for the Engineering Department (1993) of Ministry of Railways (as

modified up to the date of signing of this agreement)

“MG” or “Meter Gauge” means a railway track with a gauge of 1000mm

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“National Emergency” shall include an emergency declared by the

President of India under Article 352 and 360 of the Constitution of India or

direction by the GOI affecting the normal movement of traffic in case of

declared or undeclared war, drought, epidemic, earthquakes, cyclone, or any

other natural disaster

“New Assets” means the assets to be created on the Existing Assets till

Commissioning on the terms and conditions as provided for in Code for the

Engineering Department (1993) of Ministry of Railways (as modified up to

the date of signing of this agreement) and as set out in Schedule 1 of this

Agreement, with proviso that such terms and conditions shall stand

modified to the extent of specific provisions in this agreement wherever such

provisions exist.

“Operations” means all activities associated with train movement, train

running, loading and unloading freight, storage of consignments and the

security of consignments.

“Project” means and includes Gauge Conversion and all activities relating

to development, financing, Construction, Operations and Maintenance of the

Project Railway.

“Project Area” means the entire MG formation from Hassan station to

Kankanadi station (Mangalore) as well as the land, stations, existing yards,

and building along this track within the same range belonging to MOR.

“Project Assets” refers to Existing Assets , New Assets and other assets

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relating to and forming part of the Project Railway including but not limited

to

a. such rights as are defined under this agreement over the Project Area,

b. financial assets, such as security deposits, insurance proceeds,

Applicable Permits, including authorisations relating to or in

respect of the Project Railway.

“Project Railway” means broad gauge rail link connectivity between

Hassan at km. 0 and Kankanadi (Mangalore) at km 183.19.

“Railway” shall have the meaning prescribed under the Railways Act, 1989

“Rs.” or “Rupees” means the lawful currency of the Republic of India.

“Safety Certificate” means the certificate of safety issued by the Chief

Engineer, SWR in respect of freight operations, and/or certificate of safety

issued by the Commissioner of Railway Safety, Bangalore for public

carriage of passengers.

“State Bank of India Prime Lending Rate” or “SBI PLR” means the

prime lending rate per annum of the State Bank for India for loans having a

tenor of one year. This term shall also refer to any other arrangement that

replaces the State Bank of India prime lending rate.

“South Western Railway” or “SWR” means the Zonal Railway under

Ministry of Railways headquartered at Hubli.

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1.2 Interpretations

In this Agreement, unless the context otherwise requires:

a. any reference to a statutory provision shall include such provision as

is from time to time modified or re-enacted or consolidated so far as

such modification or re-enactment or consolidation applies to, or is

capable of being applied to any transactions entered into hereunder;

b. reference to Indian Law shall include the relevant laws, acts,

ordinances, rules, regulations, or bye laws which have the force of law

in any State or Union Territory forming part of the Union of India;

c. the words importing singular shall include plural and vice versa, and

words importing the masculine shall include the feminine gender.

d. the words denoting natural persons shall include partnerships, firms,

companies, corporations, joint ventures, trusts, associations,

organisations, or other entities, whether incorporate or otherwise;

e. the headings are for convenience of reference only, and shall not be

used in and shall not affect the construction or interpretation of this

Agreement;

f. terms and words beginning with capital letters and defined in this

Agreement shall have the meaning ascribed thereto herein, and the

terms and words defined in the Schedules and used therein shall have

the meaning ascribed thereto in the Schedules;

g. the words “include” and “including” are to be construed without

limitation;

h. any reference to any point in time shall mean a reference to that point

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according to Indian Standard Time;

i. any reference to day shall mean a reference to a calendar day, any

reference to month shall mean a reference to a calendar month and

any reference to quarter shall mean a reference to a calendar quarter;

j. the Schedules to this Agreement form an integral part of this

Agreement and will be in full force and effect as though they were

expressly set out in the body of this Agreement;

k. any reference at any time to any agreement, deed, instrument, licence

or document of any description shall be construed as reference to that

agreement, deed, instrument, licence or other document as amended,

varied, supplemented, modified or suspended at the time of such

reference;

l. references to Recitals, Articles, sub-Articles, Paragraphs, or Schedules

in this Agreement shall, except where the context otherwise requires,

be deemed to be references to Recitals, Articles, sub-Articles,

Paragraphs, and Schedules of or to this Agreement.

m. any reference to any period commencing “from” a specified day or

date and “till” or “until” a specified day or date shall include both

such days or dates;

n. any term not expressly defined in this agreement shall have the

meaning specified under the Railways Act, 1989.

1.3 Measurements and Arithmetic Conventions

All measurements and calculations shall be in the metric system and

calculations shall be done to two decimal places, with the third digit of 5 or

above being rounded up and below 5 being rounded down.

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1.3.1 Priority of contract documents and errors/discrepancies.

The several documents forming this Agreement are to be taken as mutually

explanatory to one another and, unless otherwise expressly provided

elsewhere in this Agreement, the priority of the following documents shall in

the event of any conflict between them be in the order they are set out;

a. this Agreement

b. all other documents forming part of this Agreement

i.e. documents at (a) above shall prevail over the documents at (b) above.

1.3.2 In case of ambiguities or discrepancies within this Agreement the following

shall apply:

a. between two articles of this Agreement, the provisions of the specific

article relevant to the issue under consideration shall prevail over

those in other Articles;

b. between the Articles and the Schedules, the articles shall prevail save

as otherwise expressly set forth in this Article;

c. between the dimension scaled from the Drawing and its specific

written dimension, the latter shall prevail;

d. between any value written in numerals and that in words, the latter

shall prevail.

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2.0 SCOPE OF PROJECT RAILWAY

The scope of the Project Railway shall include performance and execution of

all design, engineering, procurement, construction and Commissioning as

per the Detailed Estimate of:

a. all gauge conversion works from Hassan Station (identified by the Indian

Railways as chainage point Kilometer 0) to Kankanadi Station (identified

by the Indian Railways as chainage point Kilometer 183.19) near

Mangalore measuring approximately 183 kilometers. This shall comprise

of the following sections:

i. Hassan Station to Sakleshpur Station measuring approximately 42

kilometers

ii. Sakleshpur to Subramanya Road measuring approximately 55

kilometers

iii. Subramanya Road to Kabaka Puttur measuring approximately 42

kilometers

iv. Kabaka puttur to Kankanadi approximately measuring 44 kilometers

3.0 SCOPE OF WORK

3.1 Scope of Design and Engineering

3.1.1 SWR shall prepare and complete the design, drawings and engineering

requirements for the entire Project Railway as described in Article 2.0 for

carrying out the Construction Works under this Agreement.

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3.1.2 The design, drawings and engineering requirements for the Project Railway

shall be carried out as per the engineering standards and specifications laid

down by the Indian Railways and the Research Designs and Standards

Organisation (RDSO), as set out by SWR while preparing the Detailed

Estimate for the Project Railway and as described in Schedule 2.

4.0 PROCUREMENT

4.1 SWR shall carry out the procurement of all materials required for the

Construction Works of the Project Railway.

4.2 All the materials to be used by SWR in the Construction Works shall be as

specified in the relevant standard specification of the SWR, RDSO

specifications.

5.0 ACQUISITION OF LAND

5.1 SWR shall acquire any land that may be required for the Project (as per

Schedule 3) and the cost of acquisition of such land shall not form part of the

Contract Value as detailed in Article 10.0, and shall be borne completely by

SWR.

5.2 HMRDC shall assist SWR to expedite the land acquisition process and

liaison with the relevant authorities on priority basis.

5.3 Any delay in the acquisition of the land for the laying of the new BG rail

line between Hassan station to Kankanadi station (Mangalore), resulting in

the delay of the Project Completion Schedule shall not be accountable by

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SWR. In the event of any such delay the Party shall mutually decide the

revised COD and completion of the project and the additional cost shall be

paid by the HMRDC.

6.0 CONSTRUCTION

6.1 SWR shall undertake all Construction Works and create the New Assets as

set out in Schedule 1.

6.2 SWR shall ensure that all contracts or sub-contracts shall be carried out as

per the Indian Railway standards for contracts and sub-contracts.

6.3 During the Construction period, in case of any damage to any of the Project

Assets due to a Force Majeure Event, SWR shall take necessary action to

resume Construction at the earliest possible.

7.0 INSPECTION, CERTIFICATION, COMMISSIONING AND

MONITORING

7.1 Inspection and Certification by Statutory Authorities

7.1.1 During Construction, HMRDC shall be allowed to undertake periodic

inspections through its own authorised representatives to satisfy itself

regarding the quality and progress of Construction.

7.1.2 Upon completion of all Construction Works, SWR shall be responsible for

Commissioning.

7.1.3 All the necessary documentation for complying and obtaining Safety

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Certificate shall be prepared and submitted by the SWR as per the procedure

in the „Rules for opening of a Railway for Freight Traffic‟.

7.1.4 Whenever obligatory inspection by the Chief Engineer, South Western

Railway or any other statutory authority is required, the same shall be

arranged for and attended to by SWR.

7.1.5 All the deficiencies pointed out by the Chief Engineer, South Western

Railway or any other statutory authority during any such inspection shall be

promptly attended to by SWR, to the satisfaction of the inspecting authority/

authorities. The cost of such works shall form part of the Completion Cost of

the Project.

7.2 Commissioning of the Project Railway

7.2.1 For Commissioning of the Project Railway, the rules for opening of a

Railway shall be followed by SWR and all inspections and tests stipulated

thereunder at various stages of opening for goods traffic passengers shall be

followed.

7.2.2 SWR shall furnish the following documents to HMRDC as considered

relevant and any such other document as may be required by HMRDC for

monitoring the Scope of Work under this agreement on or during the

Construction Period and the related documents for Operations and

Maintenance of the Project Railway after the Construction is completed:

a. Engineering plan of the alignment;

b. Longitudinal section of the alignment;

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c. Yard plans and junction arrangement;

d. Type plans, elevation and X-section for relay rooms, DG Set rooms,

battery rooms, gates and lodges.

e. List with details of curves and grades required to be eased;

f. Bridge drawings including drawings of road over/under bridges;

g. Signalling plan and interlocking plan

h. Drawing for installation of long welded rails

i. Loop plans

j. Layouts

k. List of level crossings

7.2.3 The Project Railway shall be deemed to have been completed and

commissioned after scope of work under Article 2.0 above has been fulfilled

by SWR, which includes the installation and Commissioning of all works so

as to commence commercial operations on the Project Railway.

7.2.4 Upon completion and Commissioning of the Project Railway, SWR shall

draw the project completion report which inter-alia shall also include the

Completion Cost of Project and furnish the same to HMRDC.

7.3 Project Completion Schedule

7.3.1 SWR shall complete the Construction Works and create the New Assets (in

accordance with Schedules 1 and 2) and procure Safety Certificate for the

Project Railway within 12 months from the date of signing this Agreement.

7.3.2 In the eventuality of any delay being anticipated in project completion for

reasons not attributable to HMRDC, SWR shall inform HMRDC at the

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earliest opportunity, the reasons for such delay and likely date of

completion.

7.4 Monitoring Work

7.4.1 SWR shall prepare and submit a monthly progress and financial report to

HMRDC with the copy to CPRB regarding physical and financial progress

of the works in a pro forma to be mutually agreed upon.

7.4.2 The monthly progress and financial reports shall include actual progress of

the Construction Works and status of creation of New Assets, and shall give

such other relevant information as may be required from time to time by

HMRDC and CPRB.

7.4.3 CPRB shall review the above monthly progress and financial report and

issue necessary instruction to SWR and HMRDC to take necessary action

for timely/expeditious completion of the Project.

8.0 PERFORMANCE AND GUARANTEES

8.1 SWR shall ensure that the Project Railway has been designed, constructed,

commissioned and certified, permitting initial train speed not below 50

kilometres per hour (kmph). SWR shall strive to raise it to 100 kmph for

regular operation of passenger trains within a reasonable period, subject to

observance of all permanent and temporary speed restrictions.

9.0 WORKS TO BE UNDERTAKEN BY HMRDC

9.1 HMRDC shall make arrangements to procure all necessary permits it is

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required to obtain in order to perform its obligations under this Agreement.

10.0 CONTRACT VALUE

10.1 SWR shall undertake the entire works under this Agreement as per the

Detailed Estimate within the Schedule of Costs listed in Schedule 4. In case

of any unexpected increase in the cost of execution of the works by more

than 10% of the Completion Cost of the Project, before executing the same,

SWR shall take prior consent of HMRDC. The excess cost to be incurred,

however, shall form part of the “Completion Cost of the Project” which will

be the total cost to be paid by HMRDC to SWR for executing the Project

Railway.

10.2 Since HMRDC is a joint sector company with the Railways and GOK as

partners, no department charges shall be levied. However, D&G charges,

shall be payable to SWR on basis of actual cost incurred for the Project

subject to a maximum of 6% of cost as per Detailed Estimate. In case of any

unexpected increase in D&G charges beyond what has been provided for the

prior consent of HMRDC will be taken.

10.3 Any cost overruns on account of increase in the duties and taxes, shall be to

the account of HMRDC.

10.4 Any material property or other asset presently in the track or in the Railway

station as part of the Existing Assets are to be disposed off by SWR at their

sole discretion to be replaced by new assets, property or material as the case

may be and if any credit is realized on account of such disposal, the same

shall be credited to the earnings of SWR and shall not be part of Completion

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Cost of the Project.

10.5 No item of work, which constitutes a “Material Modification” to the scope

of work, as provided for in the “Detailed Estimate” having a value of more

than Rs. 15 lakhs for an individual item, shall be taken up by SWR without

prior consent of HMRDC. Consent of HMRDC shall also be necessary if the

total cost of such “Material Modifications” exceeds 5% of the estimated

Completion Cost of the Project by excluding the cost of work already

executed.

11.0 TERMS OF PAYMENT

11.1 For the project costs already incurred by SWR upto March 31, 2002 and

aggregating to Rs. 141 Crores, the same shall be treated as unsecured debt

from SWR to HMRDC and HMRDC shall issue appropriate

instruments/securities to SWR or execute such agreement(s), as may be

necessary with SWR. Similarly for the project costs already incurred by

SWR after March 31, 2002, the same shall be capitalized in HMRDC by

issue and allotment of equity shares by HMRDC to SWR for the same.

11.2 In respect of the costs incurred after the Appointed Date, HMRDC shall

reimburse SWR in the manner set out in the succeeding Clauses 11.3, 11.4

and 11.5.

11.3 SWR shall prepare and submit to HMRDC at least one month before the

start of the month, a statement specifying the requirement of funds for the

subsequent month based on the construction activities to be undertaken by

SWR . Provided that the first such statement shall be submitted by SWR to

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HMRDC on the Appointed Date .

11.4 Based on the monthly statement submitted in the manner specified in clause

11.3 above, HMRDC shall deposit each month requisite funds with SWR in

the “Escrow Account”, and in any case before the beginning of the month to

enable SWR to discharge financial liabilities arising out of the works

undertaken for construction of the Project Railway. SWR shall not be liable

for any delay in completion of the works and other consequential liabilities,

due to failure of HMRDC to deposit in time such payments.

11.5 In case HMRDC fails to deposit requisite amount in the Escrow Account or

delays communicating decision to SWR leading to cost over run then they

shall be liable for payment of any additional cost incurred by SWR due to

such delays.

11.6 HMRDC may compare the monthly statement specifying the requirement of

funds submitted with the monthly progress reports submitted by SWR and

make appropriate adjustments while making the monthly deposits in advance

of the subsequent month. However, before making any deduction from the

projected fund requirement of SWR, HMRDC shall seek necessary

clarifications based on the construction activities to be undertaken by SWR.

12.0 GENERAL OBLIGATIONS THROUGHOUT THE CONSTRUCTION

PERIOD

12.1 General Obligations of SWR

SWR shall, undertake, comply with and perform, in addition to and not in

derogation of its obligations elsewhere set out in this Agreement, the

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following:

a. make, or cause to be made, necessary applications to the relevant

Government Authority with such particulars and details, as may be

necessary for obtaining all Applicable Permits, and obtain such

Applicable Permits in conformity with the Applicable Laws;

b. remove promptly from the Project Area all surplus construction

machinery and materials, waste materials (including, without

limitation, hazardous materials, waste water), rubbish and other debris

(including without limitation accident debris) and shall keep the

Project Area in a neat and clean condition and in conformity with the

"Applicable Laws "and Applicable Permits;

c. procure, as may be required from time to time for undertaking the

Construction Works, all the necessary proprietary rights, licences,

agreements and permissions for materials methods, processes and

systems used or incorporated into the Project Railway;

d. obtain, maintain in force, at the cost of HMRDC, on and from the

Appointed Date all insurance in accordance with the provisions of this

Agreement and Good Industry Practice;

e. appoint, supervise, monitor and control the activities of SWR under

their respective contracts as may be necessary;

f. make reasonable efforts to maintain harmony and good industrial

relations among the personnel employed in connection with the

performance of the SWR obligations under this Agreement;

g. not to place or create nor permit any SWR employee or other person

claiming authority through or under SWR, to create or place any

encumbrance or security interest over all or any part of Project Area

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or the Project Assets, or on any rights of HMRDC therein or under

this Agreement, save and except as expressly set forth in this

Agreement;

h. ensure that no barriers are erected or placed by any Governmental

Authority on the Project Area except on account of any law and order

situation or upon national security considerations;

i. indemnify HMRDC against all actions, suits, claims, demands and

proceedings and any loss or damage or cost or expense that may be

suffered by them in connection with the performance of its obligations

under this Agreement;

j. comply with all obligations and safety standards prescribed under the

Railways Act, 1989.

12.2 General Obligations of HMRDC

12.2.1 HMRDC agrees to observe, comply and perform the following:

a. enable access to SWR in the Project Area in accordance with this

Agreement;

b. permit peaceful use of the Project Area by SWR under and in

accordance with the provisions of this Agreement without any let or

hindrance from HMRDC or persons claiming through or under it;

c. assist and provide support to SWR in obtaining Applicable Permits;

d. that no barriers are erected or placed by any Governmental Authority

on the Project Area except on account of any law and order situation

or upon national security considerations;

e. Observe and comply with its obligations set forth in this Agreement.

f. Pay the monthly payment to the Escrow Account.

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g. Obtain, maintain in force, at the cost of HMRDC on and from the

appointed date all insurance in accordance with the provision of this

Agreement and Good Industry Practice.

12.2.2 HMRDC shall, at all times, afford access to the Project Area to the

authorised representatives of SWR including those concerned with safety,

security or environmental protection to inspect the Project Railway and to

investigate any matter within their authority and upon reasonable notice.

SWR shall provide to such persons reasonable assistance necessary to carry

out their respective duties and functions with minimum disruption to the

construction of the Project Railway consistent with the purpose for which

persons have gained such access to the Project Area.

12.3 Due Diligence

HMRDC and SWR agree to abide by all principles of due diligence and

Good Industry Practices as well as provisions relating to exercise of

diligence laid down in the Railway Act, 1989.

12.4 Claims and Liabilities

12.4.1 Any claims and liabilities arising out of the execution of the Project Railway

shall be settled by SWR subject to the provisions of 12.4.2. Cost incurred on

this account shall form part of the Completion Cost of the Project

12.4.2 HMRDC shall be fully responsible for all the claims and liabilities arising

out of its default or act. Any claims and liabilities arising out of HMRDC‟s

default or act shall be settled by HMRDC, at its own cost.

27

13.0 BREACH OF CONTRACT AND OTHER FAILURES TO PERFORM

13.1 Breach of Contract and liability for breach

13.1.1 In the event of SWR or HMRDC being in material default unless arising as a

result of Force Majeure event and such default is not cured before

Termination, the defaulting Party shall pay to the other Party, as

compensation, all direct additional costs suffered or incurred by the

concerned Party arising out of such material default.

13.2 Default & Termination

13.2.1 HMRDC‟s Event of Default

The following (unless arising as a result of Force Majeure Event or SWR‟s

default) shall constitute HMRDC‟s event of default:

a. Repudiation of this Agreement by HMRDC or the evidencing of an

express intention by HMRDC not to be bound by the terms of this

Agreement;

b. Appointment of a provisional liquidator providing for winding up of

HMRDC, after notice to HMRDC and due hearing, unless such

appointment has been set aside within 90 days.

c. Non-deposition of requisite amount in the Escrow Account as per

Article 11 of this Agreement.

d. Non-performance of any Act set forth in this Agreement for a

continuous period of 60 days.

28

13.2.2 SWR‟s Events of Default

The following (unless arising as a result of Force Majeure Event or

HMRDC‟s Default) shall constitute SWR‟s Event of Default:

a. Non Performance of any acts set forth in this agreement for a period

of 60 days;

b. Repudiation of this Agreement by SWR or the evidencing of an

express intention by SWR not to be bound by the terms of this

Agreement;

13.2.3 Consequences of Default

In the event of SWR‟s Event of Default or HMRDC‟s Event of Default

(“Event of Default”) the termination procedure as set out in Article 13.2.4,

13.2.5 and 13.2.6 shall apply.

13.2.4 Notice of Intent to Terminate cum Remedy Period

a. On the happening of any Event of Default as set out above, the non-

defaulting Party may initiate termination of this Agreement by

delivering a notice to the defaulting Party of intention to terminate this

Agreement (Notice of Intent to Terminate).

b. The Notice of Intent to Terminate shall specify with reasonable details

the defaults committed by the defaulting Party, giving the default

Party 30 days (“Remedy Period”) to cure the Event of Default.

29

c. During the Remedy Period, the Defaulting Party shall continue to

undertake efforts to cure the default, and the Non Defaulting Party

shall not, by any act or omission, impede or otherwise interfere with

the Defaulting Party‟s endeavours to remedy the Event of Default.

d. During the Remedy Period, both the Parties shall, save as otherwise

provided herein, continue to perform their respective obligations

under this Agreement.

13.2.5 Withdrawal of Notice of Intent to Terminate

If, during the Remedy Period, the defaulting Party rectifies or remedies the

default to the satisfaction of the non defaulting Party or the non defaulting

Party is satisfied with steps taken or proposed to be taken by the defaulting

Party of the Event of Default giving rise to the Notice of Intent to Terminate

has ceased to exist, the non defaulting Party shall withdraw the Notice of

Intent to Terminate.

13.2.6 Termination

a. Upon the expiry of the Remedy Period, unless the Parties have

otherwise agreed to, or the Event of Default giving rise to the Notice

of Intent to Terminate has ceased to exist or the default has been

rectified or remedied by the defaulting Party, the non defaulting Party

may terminate this Agreement by issuing a Termination Notice to the

defaulting Party.

30

b. Upon the expiry of such Remedy period this Agreement shall be

terminated and the provisions of Articles 13.2.7 and 13.2.8 shall be

applicable.

13.2.7 HMRDC‟s Event of Default

In the event of HMRDC‟s Event of Default, HMRDC shall pay to SWR all

reimbursements of advances made to SWR‟s sub-contractors based on legal

and valid documentary evidences. HMRDC shall also discharge on behalf of

SWR all other liabilities with direct or consequential which, have been

incurred by SWR towards fulfilling its obligations under the terms of this

Agreement.

13.2.8 SWR‟s Event of Default

In the event of SWR‟s Event of Default, HMRDC shall have the option of

getting the balance work executed & completed by another agency with the

prior approval of MoR. In such an eventuality payment to SWR shall be

limited to the cost of work actually executed and the liabilities already

incurred by SWR.

14.0 INDEMNITY

a. HMRDC will indemnify, defend and hold SWR harmless against any

and all proceedings, actions and third Party claims (other than a claim

by SWR for loss, damage and expense of whatever kind and nature

arising out of the design, engineering and construction of the Project

Railway or arising out of a breach by HMRDC of any of its

31

obligations under this Agreement except to the extent that any such

claim has arisen due to SWR Event of Default).

b. SWR will, indemnify, defend and hold harmless HMRDC against any

and all proceedings, actions and, third Party claims for loss, damage

and expense of whatever kind and nature arising out of defect in title

and/or the rights of SWR in the land comprised in the Project Area

adversely affecting the performance of the HMRDC‟s obligations

under this Agreement and/or arising out of acts done in discharge of

their lawful functions by SWR, its officers, servants, agents,

subsidiaries and contractors including SWR Events of Default except

to the extent that any such claim has arisen due to a negligent act or

omission, breach of contract or breach of statutory duty on the part of

HMRDC, its assigns, subsidiaries, affiliates, contractors, servants or

agents including due to HMRDC‟s Event of Default.

14.1 In the event that either Party receives a claim from a third Party in respect of

which it is entitled to the benefit of an indemnity under this (“the

Indemnified Party”) it shall notify the other Party (“Indemnifying Party”)

within 14 (fourteen) days of receipt of the claim and shall not settle or pay

the claim without the prior approval of the Indemnifying Party, such

approval not to be unreasonably withheld or delayed. In the event that the

Indemnifying Party wishes to contest or dispute the claim it may conduct the

proceedings in the name of the Indemnified Party subject the Indemnified

Party being secured against any costs involved to its reasonable satisfaction.

15.0 FORCE MAJEURE

15.1 “Force Majeure” shall mean any event or circumstance or combination of

events or circumstances that materially and adversely affects the

32

performance by either Party (the “Affected Party”) of its obligations under

this Agreement (including by preventing or hindering or delaying such

performance), but only if and to the extent that such events and

circumstances in all possibility are not within the Affected Party‟s

reasonable control.

The following circumstances and events shall constitute an event or

circumstance of Force Majeure to the extent that they or their consequences

satisfy the above requirements:

a. the effect of natural elements or other acts of God, including but not

limited to any storm, flood, drought, lightening, earthquake, cyclone

or other natural disaster;

b. fire, accident, breakage of facilities or equipment, structural collapse

or explosion which the Party claiming to have been subject to Force

Majeure demonstrates to have been attributable to a cause other than

i. inherent defects of any equipment, or

ii. circumstances within the reasonable control of the Affected Party

or its contractors;

c. epidemic or quarantine

d. acts of war (whether declared or undeclared), sabotage, terrorism or

acts of public enemy (including the acts of independent units or

individuals engaged in activities of foreign program of irregular

welfare), acts of belligerence of foreign enemies (whether declared or

undeclared), blockades, embargoes, civil disturbances, revolution,

33

rebellion or insurrection, exercise of military or usurped power or any

attempt at usurpation of power;

e. radioactive contamination or ionization radiation

f. events of strikes, work to rule actions, go-slows or similar labour

related problems caused in whole or in part by agitation or unrest

having a severe impact on the Project Railway.

g. any Change in Law

h. the expropriation or compulsory acquisition of the Project Railway by

any Governmental Authority (except if such

expropriation/compulsory acquisition is due to the fault of the

HMRDC)

i. Any circumstance or event beyond the control of either Party such as

and legal proceedings related to land or the construction and agitation

or similar steps taken by any member of public against implementing

any part of the Project on ground of environment, public interest or

similar grounds.

15.2 Duty to Report

15.2.1 A Party claiming to be affected by an event of Force Majeure shall notify the

other Party in writing of the occurrence of the event of Force Majeure as

soon as reasonably practicable, and in any event, within 15(fifteen) days

after the Affected Party knew, or ought reasonably to have known, of its

occurrence and the probable material effect that the event of Force Majeure

is likely to have on the performance of its obligations under this Agreement.

34

a. Any notice pursuant to this Article 15.2.1 shall include full particulars

of:

b. the nature and extent of the event of Force Majeure which is the

subject of any claim for relief under this Article 15.2.1 with evidence

in support thereof;

c. the estimated duration and the effect or probable effect which such

event of Force Majeure is having or will have on the Affected Party‟s

performance of its obligations under this Agreement; and

d. the measures which the Affected Party is taking or proposes to take, to

alleviate the impact of such event Force Majeure ; and

e. any other information the Affected Party wishes to present in support

of its claim.

15.2.2 For so long as the Affected Party continues to claim to be affected by such

event of Force Majeure, it shall continue to provide to the other Party written

reports on every alternate day, containing information as required by this

Article and such other information as the other Party may reasonably request

the Affected Party to provide.

15.2.3 Any Party claiming to have been affected by an event of Force Majeure shall

not be entitled to any relief unless it has complied with all the provisions of

this Article.

15.2.4 Excuse from performance of obligations

An Affected Party who is rendered wholly or partially unable to perform its

obligations under this Agreement shall be excused from performance of such

35

of its obligations as are directly and materially adversely affected by the

event of Force Majeure, provided however that:

a. an obligation to make any payment or meet any financial obligation

shall not be excused on account of an event of Force Majeure, and

b. the maximum period for which relief can be claimed by an Affected

Party in respect of an event of Force Majeure shall not exceed one

hundred and twenty (120) days, and

c. the suspension of performance of its obligations by the Affected Party

shall be of no greater scope and of no longer duration than is

reasonably necessitated by the event of Force Majeure, and

d. the Affected Party shall continue to make all reasonable efforts to

mitigate or limit the damage to the other Party arising out of or as a

result of the existence or occurrence of such event of Force Majeure

and to cure the same with due diligence; and

e. when the Affected Party is able to resume performance of its

obligations under this Agreement, it shall give to the other Party

written notice to that effect and shall promptly resume performance of

its obligations hereunder.

15.2.5 In the event the Force Majeure continue beyond 60 days, the affected Party

or Parties shall mutually agree upon an alternative arrangement.

15.3 No Liability for other losses, damages, etc

Save and except as expressly provided in this Article 15.0, neither Party

shall be liable in any manner whatsoever to the other Party in respect of any

loss, damage, cost, expense, claims, demands and proceedings relating to or

36

arising out of the occurrence or existence of any event of Force Majeure or

the exercise by it of any right pursuant to this Article 15.0.

15.4 Termination Notice

If a Force Majeure Event subsists for a continuous period of 60 (sixty) days,

the Agreement may be terminated by either Party by the consent of the other

Party by giving a Termination Notice in writing.

15.5 Termination Payment for Force Majeure Events

Upon Termination of this Agreement pursuant to Article 15.4, no Party shall

be entitled for any termination payments.

16.0 SETTLEMENT OF DISPUTES THROUGH GOOD FAITH

NEGOTIATIONS AND CONCILIATION

16.1 Good Faith Negotiation

The Parties shall endeavour, in the first instance, to resolve any dispute,

disagreement or difference arising out of or in connection with this

Agreement, including any question regarding its performance, existence,

validity, termination and the rights and liabilities of the Parties to this

Agreement (a “Dispute”) through good faith negotiations.

16.2 For the purpose of conducting good faith negotiations, each Party shall,

within one month of the Appointed Date, designate in writing to the other

Party a representative who shall be authorised to negotiate on its behalf with

a view to resolving any Dispute (the “Representative”). Each such

37

Representative shall remain so authorised until his replacement has been

designated in writing to the other Party by the Party he represents.

16.3 Unless otherwise provided for in this Agreement, the following provisions

shall apply to the resolution of any Dispute:

a. The Dispute shall not be referred to Arbitration under Article 17.0,

unless and until the provisions of this Article have been complied

with.

b. The Representative of the Party which considers that a Dispute has

arisen shall give to the Representative of the other Party, a written

notice setting out the material particulars of the Dispute (a “Dispute

Notice”).

c. Within thirty days, or such longer period as may be mutually agreed

(the “Negotiation Date”), of the Dispute Notice having been

delivered to the other Party, the Representatives of both Parties shall

meet in person at the registered office of the Company or at any other

designated place to attempt in good faith, and using their best

endeavours at all times, to resolve the Dispute. Once the Dispute is

resolved, the terms of the settlement shall be reduced in writing and

signed by the Representatives of the Parties (the “Settlement”).

d. If a Settlement is not reached within thirty (30) days after the

Negotiation Date, such Dispute shall be referred for Conciliation to

one conciliator in accordance with the provisions of Arbitration and

Conciliation Act, 1996.

38

17.0 ARBITRATION

17.1 If good faith negotiation and conciliation under Article 16.0 has not been

able to resolve a Dispute, such Dispute shall be referred to and be finally

resolved by arbitration in accordance with the Arbitration and Conciliation

Act, 1996 and the rules made thereunder.

17.2 The place of arbitration shall be Bangalore, India.

17.3 Each Party to the Dispute shall appoint one arbitrator and the two arbitrators

so appointed shall mutually agree to and appoint the third arbitrator. The

arbitral agency so constituted, shall be the “Arbitral Tribunal”. The

provisions of the Arbitration and Conciliation Act, 1996 as may be amended

from time to time and the rules, if any made there under shall apply to such

arbitration proceedings.

17.4 The language of the arbitration shall be English.

17.5 Any decision or award of the Arbitral Tribunal appointed pursuant to this

Article 17.0 shall, subject to correction/recourse provided for under the

Arbitration and Conciliation Act, 1996 be final and binding upon the Parties.

The Arbitral Tribunal shall give a speaking award.

18.0 WAIVERS

a. Waiver by either Party of any default by other Party in the observance

and performance of any provision of or obligation of or under the

Agreement:

39

i. shall not operate or be construed as a waiver of any other or

subsequent default hereof or of other provisions of or obligations

under this Agreement.

ii. shall not be effective unless it is in writing and executed by a duly

authorised representative of the Party; and

iii. shall not affect the validity or enforceability of this Agreement in

any manner.

b. Neither the failure by either Party to insist on any occasion upon the

performance of the terms, conditions and provisions of this

Agreement or any obligation thereunder nor time or other indulgence

granted by a Party to the other Party shall be treated or deemed as

waiver of such breach or acceptance of any variation or the

relinquishment of any such right hereunder.

19.0 APPLICABLE LAW & JURISDICTION

This Agreement shall be construed and interpreted in accordance with and

governed by the laws of India and the Courts of Bangalore / Delhi , who

have jurisdiction in terms of extent laws to the exclusion of all other Courts

in respect of over all matters arising out of or relating to this Agreement.

20.0 NOTICES

20.1 All notices under this Agreement shall be in writing and are effective upon

delivery to the applicable Party (whether by mail, fax, personal delivery or

otherwise) at the address indicated below (or such other address as any Party

40

may notify in writing to all the other Parties in accordance with the provisions

of this Article 20.0):

a. If to HMRDC at:

Room No.5, Vth Stage,

MS Building

Bangalore – 560 001

Attn: Managing Director

b. If to SWR at:

Hubli

Attn: General Manager (South Western Railway)

20.2 Delivery

Any notice, document or communication:

a. given by hand against acknowledgement is deemed to be received at

commencement of the next business day following delivery to the

address of the receiving Party set out in Article 20.1;

b. sent by fax is deemed to be received at the commencement of the next

business day following receipt by the sending Party of an electronic

confirmation of transmission of the notice to that addressee, which

transmission is to be confirmed by a courier transmission date-marked

the same day as the fax transmission it is confirming.

41

21.0 LANGUAGE

All notices required to be given by one Party to the other Party and all other

communications, documentation and proceedings which are in any way

relevant to this Agreement shall be in writing and in English language.

22.0 COUNTERPARTS

This Agreement may be executed in two counterparts, each of which when

executed and delivered shall constitute an original of this Agreement.

IN WITNESS WHEREOF THE PARTIES HAVE EXECUTED AND

DELIVERED THIS AGREEMENT AS OF THE DATE FIRST ABOVE

WRITTEN.

SIGNED, SEALED AND DELIVERED

For and on behalf of

South Western Railway By

(Signature)

Shri A.R. Uday Sankar

C.A.O./Construction

South Western Railway

SIGNED, SEALED AND DELIVERED

For and on behalf of

Hassan Mangalore Rail Development

Company Limited By :

____________________________

(Signature)

Shri Anil Shenoy

Director, HMRDC

In the presence of:

1.

2.

In the presence of:

1.

2.

42

Schedule 1

Description of New Assets

1. LAND: Extra land has been acquired for catch siding at following

stations.

Donigal : 7.0 acres

Kadagaravalli : 5.0 acres

Aryabatta : 5.0 acres

______________

Total : 17.0 acres

_____________

2. FORMATION: The existing MG formation is widened to BG standard

with a top width of 6.85 m in embankment and 9.05 mtr ( including drains)

in cuttings. Certain locations in deep cuttings between stations Hassan and

Subramanya Road, lesser formation width in the range of 7.0 mtrs to 9.0

mtrs is adopted.

3. DRAINS & EARTH RETAINING WALLS: All the cuttings are

provided with pucca Random Rubble Stone Masonry side drains in either

side of cutting. Most of the cuttings are having earth retaining walls in RR

Masonry/Plain Cement Concrete/RCC. The height of the retaining walls

are in the range of 3 to 5 mtrs.

4. TRACK

Ballast:

Granite Stone ballast of 50 mm nominal size collected at the rate of 2.0

cum per mtr of track with a clear cushion of 250 mm is provided

throughout.

43

RAILS: For main line 52 kg C1.I rails for a total track length of 183

Kms. are provided. For loop line 52 Kg/90R C1.II rails for a total track

length of 27 Km is provided.

FITTINGS: Class-I fittings i.e. ERC clips, groved rubber pads, metal

liners in mid section and GFN liners in yard are provided.

SLEEPERS: Class-I PSC 60 kg sleepers are provided for both main

line and loop lines. The sleeper density of M+7 is adopted in main line and

M+4 in loop lines.

5. BRIDGES

Total Bridges – 670 Nos.

Major Bridges - 91 Nos

Minor Bridges - 549 Nos.

Road Over Bridges - 16 Nos.

Road Under Bridges - 12 Nos.

Foot Over Bridges - 2 Nos.

The existing bridges are of BGML standards. Some bridges have been

strengthened = reconstructed to MBG 1987 standard of loading.

5 no. of major bridges are strengthened to MBG standard duly providing

jacketing for the sub-structure and renewal of bearings for superstructure.

15 Nos. of minor bridges are strengthened for MBG loading.

5 no.of minor bridges are reconstructed for MBG loading.

6. TUNNELS: All existing tunnels are to BG rolling stock standard

clearance.

Total number of tunnels: 57 Nos.

7. LEVEL CROSSINGS: Total number of Level Crossings – 65

Manned Level Crossings : 31

Unmanned Level : 34

44

All manned LCs are provided with lifting barrier and new gate lodges are

constructed –

8. YARDS:

Total no. of crossings stations : 14 Nos.

Total No. of halt stations: 7 Nos.

All loop lines except Shirivagilu Station in Ghat Section are having a

minimum clear standing length (CSL) of 715 mtrs. Shirivagilu Station is

having CSL of 420 mtrs due to constraints of tunnel. The loop lines are

laid on M+4 sleeper density on PSC sleepers.

The centre to centre distances of track is maintained at 5.3 mtr in yards.

The Points & Crossings are laid on PSC fan shaped layout. All points

taking off from main line are with 1 in 12 curved switches. As per the

extant rules, all yards are provided with adequate isolation duly providing

over run lines and sand humps. In ghat section between Sakleshpur-

Subramanya Road, due to continuous falling gradients of 1 in 50, catch

sidings and slip sidings are provided.

9. STATION BUILDINGS & PLATFORMS

The total no. of stations : 21

No. of new station buildings constructed: 11

(Plinth area 140 sqm)

No. of station buildings modified/extended duly providing additional

Signal & Telecom. Accommodation – 4 Nos. (Addl. Plinth area added 500

sqm).

Platform shelters are provided at the following new Crossing stations.

Ballupet : 100 Sqm.

Kadagaravalli : 100 Sqm.

Aryabetta : 100 Sqm.

Yedamangala : 100 Sqm.

45

10. STAFF QUARTERS:

Total no. of new quarters constructed at the following stations

Ballupet : Type-I & II : 2 units each

Kadagaravalli : Type-I & II : 2 units each

Aryabetta : Type-I & II : 2 units each

Yedamangala : Type-I & II : 2 units each

46

Schedule 2

STANDARD OF CONSTRUCTION

(Hassan-Kankanadi (Mangalore) BG Section)

1. FORMATION:

BANKS: Banks are provided with 2H : IV slope with a top width of 6.85

mtrs.

Berms are provided for banks above 6 mtr. Height.

CUTTINGS: Cuttings are provided with a slope of;

1H: in all soils.

½ H: 1 V in soft rock.

¼ H: 1 V in hard rock.

The bottom width of cuttings is kept as 9.05 mtr (including side drains). The

RDSO specification for earthwork in gauge conversion and doubling is

followed for the above formation works.

2. DRAINS & EARTH RETAINING WALLS:

Random Rubble strong Masonry drains of 0.45 mtr. Wide walls in cement

mortar of 1:5 mix with 0.45 mtr. drain width and 0.6 mtr. depth is provided.

Earth retaining walls in plain cement concrete with M20 mix, 40mm size

graded metal, RCC retaining walls in M25 mix 20mm graded metal and RR

Stone Masonry walls in cement mortar are provided.

3. TRACK:

Ballast: 50 mm nominal size granite metal. Clear Cusion 250mm.

Sleepers: PSC cl.I 6 kg. sleepers with M+7 density in main line and M+4

density in Loop lines.

47

Rails: 52 Kg. Cl.I rails.

Fittings: Class-I ERC Clips, combination metal/GFN liners and groved

rubber pads.

SWR/LWR track with SEJs on PSC sleepers

Ruling gradient: 1 in 100, and ghat section 1 in 50.

Maximum degree of cruves: 8 degree

4. BRIDGES: The existing bridges are of BGMI standards.

New/strengthened bridges – MHG 1987 standards.

5. TUNNELS: To BG rolling stock standard clearance.

6. Level Crossings: Manned Level crossings with lifting barrier and

signal/mechanical interlocked.

All Level Crossings including approaches are as per TRPWM Fara No. 904

and Annexure-9/1 standards.

7. YARDS: Minimum Clear Standing length of 715 mtrs is provided at all

stations except Shirivagilu with 420 mtr CSL.

Centre to Centre distance of the track – 5.3 mtrs.

All Turn Outs on PSC sleeper with CMS crossings with 1 in 12/1 or 8½

curved switches.

Yard gradients of minimum 1 in 400 is maintained.

8. STATION BUILDINGS:

Permanent buildings with brick masonry walls in cement mortar with RCC

roof.

9. PLATFORM WALLS: Platform walls are in RR masonry with cement

concrete copping slabs.

48

Platform shelters are in steel structure of IRS type.

10. QUARTERS: As per Southern Railway approved type plans for Type IV,

III, II & I.

49

Schedule 3

Schedule of Land Acquisition

In addition to existing land already acquired and utilized by South Western

Railway during MG construction, additional land as mentioned below has been

acquired during gauge conversion:

Sl.

No.

Location/Vill

age between

station

Area Survey No. Type of

Land

Remarks

1. Donigal

Station

7.0

acre

S. No. 1 of Green

Sahebra Estate Village

Private Under

Acquisition

2. Kadagaravalli

Station

5.0

acre

Survey No. 16 Village

Allivati

Forest Under

Acquisition

3. Aryabetta

Station

5.0

acre

Survey No.1 Village

Kakenore

Forest Under

Acquisition

50

Schedule 4

Schedule of Costs

Item Hard Construction Cost

(In Rs. crores)

Land 1.01

Formation 57.03

Permanent Way 150.74

Bridges 20.91

Stations & Buildings 3.68

Plant and Equipment 0.44

Signaling & Telecommunication 21.70

Electrical Works + Mech. 2.58

General Charges of Rlys. (@6.43%) 16.59

Additional Capital Cost* 4

Total Hard Construction Cost 278.71

* Note : This additional capital cost would be incurred to maintain manpower

standards of the Konkan Railway Corporation