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Bangalore Electricity Supply Company Limited(Wholly owned Government of Karnataka Undertaking)

(CIN- U0401 OKA2002SGC030438)

..PROCEEDINGS OF 69th MEETING OF BOARD OF DIRECTORSOF BANGALORE ELECTRICITY SUPPLY COMPANY LIMITEDHELD ON SATURDAY THE 25th OF JULY 2015 AT 1.00 P.M. ATCORPORATE OFFICE, BESCOM, K.R.CIRCLE, BENGALURU -560001.

MEMBERSPRESENT

SI. Sriyuths/Smt BOARDNo.1 P.Ravi Kumar Chairman2 Pankaj Kumar Pandey Managing Director3 Jawaid Akhtar Director4 Gaurav Gupta Director5 H.Nagesh Director (Technical)6 Dipti Aditya Kanade Director7 M.Nagaraj Director8 A.N.Jayaraj Director

INVITEE

T.H.Shakeel Ahmed,CGM(F&C), BESCOM

Leave of Absence

""", CONVENER

K.T.Hiriyanna Company Secretary

At the outset, MDwelcomed the Chairman, newly appointed DirectorSriJawaid Akhtar,lAS MD KPTCL, other Directors and Officers to themeeting. Board noted the change in its composition and placed on recordits appreciation for the valuable services rendered by SrLG.KumarNaik, lASoutgoing Director. Quorum being present, subjects were taken up fordiscussionand decision thereon

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PARTI - ROUTINE SUBJECTS

Subject No. 69/01: Leave of AbsenceLeaveof Absencewas granted to the following Directors:

1. SrLArvind Shrivastava2. SrLB.L.GuruPrasad3. SrLT.H.M.Kumar4. SrLK.T.Mahanthappa

Subject No. 69/02: Confirmation of Minutes of the 68th Meetingof Board of Directors of BESCOMheld on16.05.2015.

The minutes of 68th meeting of Board of Directors were read out bythe Company Secretary and thereafter the same were considered andconfirmed without any modification.

Subject No. 69/03: Action taken report on the minutes of 68thMeeting of Board of Directors of BESCOMheldon 16.05.2015.

Action taken report on the minutes of 68th Board of Directors meetingwere reviewed and noted.

Subject No. 69/04: Proceedings of the Sub-Committee Meetingsof the Board of BESCOM- for kind noting.

Proceedings of the following Board sub-committees meetings werenoted.

(1). CENTRALPURCHASESCOMMITTEE:

• 82nd Meeting of Central PurchasesCommittee of BESCOMheld on13th May 2005.

• 83rd Meeting of Central PurchasesCommittee of BESCOMheld on6th July 2015.

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(2) AUDITCOMMITTEE:

• 2ih Audit Committee Meeting of BESCOMheld on Friday, the 5thJune 2015.

...

(3) BORROWINGSSUB-COMMITTEE:• Borrowings Sub-committee meeting of BESCOMheld on 9th June

2015.

Subject No. 69/05: Circular Resolutions passedby the Board - forL. kind noting.

Board noted the following resolutions passed by circulation withregard to re-constitution of Audit Committee of BESCOMconsequent toappointment of Sri Jawaid Akhar,IAS as Director on the Board of BESCOM.

RESOLVEDthat, pursuant to section 177 of CompaniesAct2013, the Audit Committee of Bangalore Electricity SupplyCompanyLimited (BESCOM)be and is hereby reconstituted withthe following Directors.

(1) SrlJawaid Akhtar, IASManaging Director, KPTCL.

(2) Sri.H.NageshDirector (Technical), BESCOM

(3) Sri.K.T.Mahanthappa,Director, BESCOMCE(E),TT.Zone,KPTCLBengaluru.

•• Chairman

•• Member

•· Member

CompanySecretaryBESCOM

•• Convener

RESOLVEDFURTHERthat, CompanySecretary, BESCOMbeand is hereby authorized to issue necessaryorders accordingly.

Subject No. 69/06: (A) Noting of appointment of Directors on ther I

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Board.(B) Disclosure of interest under section 184(1)

of Companies Act 2013.(C) Transfer of shares.

(1) The appointment of SriJawaid Akhtar, lAS; as a Director made byGovt. of Karnataka vide No.EN 159/Co-ordination/2013 dated27.05.2015 was noted.

(2) The disclosureof interest made by all the Directors on the BoardofBESCOM,pursuant to section 184(1) of CompaniesAct 2013 readwith rule 9 (1) of Companies (Meetings of Board and its powers)Rules 2014 in the prescribed Form MBP-1 were noted andauthorized Company Secretary, BESCOMto file necessary e-forrnwith the Department of CorporateAffairs, Govt. of India.

(3) In view of appointment of SriJawaid Akhtar, lAS as Director, inplace of SrLG.Kumar Naik, lAS, the proposal for transfer of oneshare held in the name of SrLG.KumarNaik, outgoing Director wasconsideredand the following resolution was passed.

RESOLVEDthat, approvalbe and is herebyaccordedto transferthe sharesasbelow:

Name of theNo.of Distinctive Name of the

shares @Transfer Share No. Transferee

Rs.l0/-Sri.G.Kumar Naik 1 049995 Sri.Jawaid Akhtar

Subject No. 69/07: Compliances under Companies Act 2013 andother applicable Acts to BESCOM.

As directed by the Board at its 68th meeting held on 16.05.2015, theCompany Secretary placed the compliance report under Companies Act2013 and other applicable Acts to BESCOMas stipulated under section 205(1) (a) of Companies Act 2013. Further compliances made by varioussection heads of Corporate Office, Zonal, Circle and Divisional heads whoare responsible for compliances in their respective areas of work, for aperiod of three months of the financial year 2015-16 (April - June) wereplaced before the Board by the Company Secretary. TheBoardperusedthe same and directed the GM(A&RT)and GM(F&R) to takenecessary action wherever delay in compliance is observed

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; viz.,Kolar Division, Madhugiri Division, R.R.Nagar Division,Yelahanka Division, Peenya Division & KGF Division withoutaI/owing further default, liability to any fine, penalty, prosecutionand such other penal pressures by enforcing authorities under therespective Acts/Enactments.

PART - II SPECIAL SUBJECTS

Subject No. 69/08: Selection of Secretarial Auditors of BESeOM forthe Financial Year 2014-15.

The CompanySecretary appraised the Board that:

(1) Under section 204 of CompaniesAct 2013 read with relevant rules, ithas been stipulated that, the company shall annex with its Boardreport, a secretarial audit report given by the Company Secretary inpractice in the prescribed form. It shall be the duty of the company togive all assistanceand facilities to the Company Secretary in practice,for auditing the secretarial and related records of the company. TheBoard of directors in their report made in terms of sub section (3) ofsection 134 shall explain in full any qualification or observation orother remarks made by the Company Secretary in practice in hisreport.

(2) This mandatory provision is applicable to the companies in which thepaid up capital is more than 100 crores. Since BESCOMhas paid upcapital of Rs.546.92 crores as on 31.03.2015, the company mustcomply this provision by selecting a secretarial auditor for auditingsecretarial records.

(3) If a company or any officer of the company or the CompanySecretaryin practice, contravenes the provisions of this section, the company,every officer of the company or the Company Secretary in practice,who is in default, shall be punishablewith fine which shall not be lessthan one lakh rupees but which may extend to Rs. Five lakhs.

(4) The following practicing company secretaries have communicatedtheir interest to take up audit and they have offered their professionalfees for conducting secretarial audit under section 204 of CompaniesAct 2013 for the FY2014-15.

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SI. Company Secretaries in practice / FeesquotedNo. firm (Rs.)1 SrLM.Manjunatha Reddy, CS 5,70,000.002 SrLV.Karthick, CS 2,50,000.003 SrLG.Sundararajan,CS 1,50,000.004 Swaroop, Ravishankar& Associates 1,45,000.005 Raiesh Agrawal & Associates 1,25,000.006 SrLK.Narayanaswamy,es 44,500.007 SrLK.N.NageshRao,CS 40,000.008 SrLP.K.Pande& Associates 39,500.00

In view of the mandatory provisions under CompaniesAct 2014, andsince the Secretarial Audit Reprot to be incorporated in the "Annual Report"of the company which is due to be placed before the Annual GeneralMeeting of BESeOMbefore 30.09.2015, the Board considered the proposalto enstruct the secretarial audit work for the FY2014-15 to Ll quoted firmM/s.P.K.Pande& Associates. The following resolutions were passed in thiscontext.

RESOLVEDthat, approval be and is hereby accorded forappointment of M/s.P.K.Pande& Associates,a firm of CompanySecretaries, No.139, Shalimar Galaxy, i" Main Road,Sheshadripuram,Bengaluru-560 020 for conducting secretarialaudit for the financial year 2014-15 at the quoted professionalfees of Rs.39,500/-(Rs.Thirty nine thousand five hundred only)plus service tax, plus re-imbursementof out of pocket expensesfor visiting DivisionalOffices/Circle/ZonalOfficesfor auditing.

RESOLVEDFURTHERthat, the CompanySecretarybe and ishereby authorised to give necessary intimation of thisappointment to the auditors appointed within 7days of the date

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__.Fa Bangalore Electricity Supply Company Limited.COM (Wholly owned Government of Karnataka Undertaking)

(CIN- U04010KA2002SGC030438)

;; Subject No. 69/09: "IT and SMART GRID ORGANIZATIONSTRUCTURE"

The GeneralManager (ICT&MIS) explained as under :(1) Currently BESeOMis implementing major projects under various

schemes formulated by the Central Govt. as well as State Govt.like R-APDRP,Gangakalyana, Distribution Automation SystemSmart Grid, MIS, various software applications etc.,

(2) In the present scenario, new initiatives and software applicationare utmost needed. In the light of this, it has become imperativeto have an ideal IT & smart grid organization structure and aseparate cadre which is aligned to the strategic and businessgoals of the organization. .

(3) As per the decision taken by the Board of BESCOMat its 6ihMeeting held on 18.03.2015, the necessaryactions are taken asunder:(a) The proposal for IT & Smart Grid Organization structure &

related cadre has been prepared and is vetted by Directornrr Bengaluru Prof.Sadgopalan detailing roles andresponsibilities and cadre split between internal resourcesand people hired from the market.

(b) The same was placed before BESCOM's Smart GridSteering Committee which has also vetted and approvedthe same.

(c) Inputs from India Smart Grid Forum have beenincorporated for Certified Information Security Officer andSmart Grid Structure.

(d) The proposal is reviewed by experts and Director, IndianInstitute of Information Technology (lIlT-B) andcomments / suggestionsare incorporated.

(e) Cost implication for the proposed structure are worked outand placed before the Board for kind perusal.

The Board perused the following:(a) The existing structure in respect of LT.Cadre and its role and

need for re-structuring in the present scenario.(b) The proposed structure and key features with three broad

segments headed by Chief General Manager (Digital) viz.,7

~;.'~:'C"DS Bangalore Electricity Supply Company Limited_ (Wholly owned Government of Karnataka Undertaking)

(CIN- U04010KA2002SGC030438)

Information and CommunicationTechnology (lCT), Smart Grid,planning & Certified Information Security Officer.

(c) The composition of manpower under each segment byoutsource and internal source.

(d) The proposed selection procedure by constituting a committeechaired by MD, BESCOM,duly evaluating based on qualification,experience, age, suitability for each role and responsibility.

(e) The positions are also open for all internal candidates who areinterested to be the part of IT & Smart Grid cadre provided theymeet the necessaryqualifications.

MD explained that there is a need for strengthening the IT wing bycreating a separate cadre and informed that, there is an ideal structure inMaharastraState and it is proposed for creating a similar cadre in BESCOM.There are many engineers who are presently serving BESCOMwith ITbackground, opportunity will also be available to them to apply for thethese posts created under separate IT cadre in the ratio of 60:40 betweenBESCOMand outsource respectively, initially. SrLGaurav Gupta, Director,expressedthat there should be well defined R&Pregulations/C&RRulesfora better cadre management and at the same time administrative andfinancial implications should also be looked into. MD further mentioned thatafter a lapse of 5-6 years BESCOMwill have 900/0 well trained inhousemanpower in the proposed cadre.

The subject was debated. The Board further observed that, there is aneed for defining the proper recruitment policy, framing Cadre &Recruitment Rules/R&P Regulations and related matters, roles &responsibilities of each position, evaluation and selection methology forinternal manpower resources of BESCOM.The present proposal is placedbefore the Board at the total average annual cost of Rs.11.91 crores withmanpower strength of 102 Nos under various positions of the IT cadre fromthe level of Assistant Engineer to the level of Chief General Manager(Digital) [Both BESCOMand Outsourced]. Board considered the proposal

with the following staff structure. \~,:;",

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Interest & Finance charges10 Interest on Loans 195.31 252.71

11 Interest on Working capital 316.64 316.6412 Interest on belated payment on PPCost 013 Interest on consumer deposits 210.51 210.5114 Other Interest & Financecharges 7.63 7.6315 Lessinterest & other expensescapitalised 40 40

16 Total Interest & Finance charges 690.1 747.49

17 Other Debits 018 Net Prior Period19 RoE 114.93 105.4

20 Fundstowards ConsumerRelations/Consumer 1 1Education

21 Other Income 197.52 197.52

22 NetARR 17124.32 14485.93Receipts for FY-16 as per existing tariff 13550.7Gap 880.63

Particulars Amt. Crs.

Regulatoryasset of FY-13 342.16

Deficit for FY-14 839.88

Deficit for FY-16 880.60

Total 2062.66

Salesfor FY-16 25787

Tariff hike Rs.junit 0.80

The Board noted the following:-(a) The Commission has issued the tariff order on 02.03.2015 and

allowed additional revenue of Rs. 455.86 crores on tariff revisionas against the additional revenue of Rs. 2062.66 crores proposedfor the FY 2015-16. BESCOMhas proposed an increase of 80psper unit for all categories.

(b) The commission has not increasedthe tariff for the first two slabsof domestic consumers who are using upto 100 units. BESCOMaggrieved by the tariff order 2016, has filed an appeal petitionbefore the Appellate Tribunal for Electricity(APTEL)on 16.04.2015

(c) In this connection GM(A&RT) has been authorized to filepetition/application for tariff related issuesthrough issueof OfficialMemorandum. However in view of procedural requir ment which

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is insisted by Appellate Tribunal for Electricity(APTEL)there is aneed for authorizing the GM(A&RT) to sign the affidavits,pleadings statements etc., to be filed with APTEL

After deliberation on the above aspects, the Board considered theproposal placed by the Director(F), BESCOMand GM(A&RT) BESCOMinthis behalf and passedthe following resolution in this context:

RESOLVEDthat, for the reasons explained, the GM(A&RT},BESCOMbe and is hereby authorized to represent the company,sign Affidavits, pleadings, Statements, Letters etc., on behalf ofBESCOMin the matter of filing tariff application, tariff reviewpetition, tariff appeal petition and all other matters incidentalthereto asmay be considerednecessaryand expedient before theappropriateauthorities, until furlher orders.

Subject No. 69/18: Approval of Financial Statements ofBESeOMFinancial Year 2014-15.

The following were submitted:-(1) The draft financial statements for the financial year 2014-15 are

prepared pursuant to section 128 and 129 of CompaniesAct 2013read with relevant Rules and the same were placed before theAudit Committee, BESCOMat its meeting held on 05.06.2015.

(2) Financial results have shown that the company has made a netprofit of Rs.129.85 crores for the financial year 2014-15. Thehighlights are as shown below.

51.Amount

Particulars (Rs. inNo. crores)

(a) Income 13,938.40(b) Expenses: 13,566.41

A Profit @ operating level: 371.99Less : Depreciation Expenses : (-) 191.42

Exceptional items (8&D) (-) 16.13Prior period income (-) 5.12Income Tax Provision (-) 2~.47

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(CIN- U04010KA20025GC030438)

Net profit as per the accounts approvedby Audit Committee on 05.06.2015(Add) Net increase on revision : 80.66(Less) Net increase in expenses: 221.76

172.57B Net Profit 129.85

(3) In the course of business, company has earned Rs.371.99 croresof profit at operating level which is significantly higher than theprevious year.

(4) Significant accounting policies issued by the company hasindicated that revenue from operations is accounted on accrualbasis at the tariff rates approved by KERC.Revenuedues from theconsumers whose ledger accounts are yet to be opened areaccounted on estimation basis. The revenue grants and subsidiesdue from Government are accounted as income only on accrualbasiswhen there is a reasonablecertainty in receiving the same.

(5) Retirement benefit are provided on the rates prescribed by KPTCL& ESCOMsPension& Gratuity Trust as per the order No. KPTCL&ESCOMsP&GTrust/KC0123/P7/2011-12 CYS07 dated 27.05.2013which is basedon actuarial valuation.

The following were perused by the Board:

(a) Provision for income tax is made after taking into considerationbenefit admissible under the provisions of Income Tax Act 1961.Sinceduring the past 11 years (except 2013-14 and 2014-15), thecompany has incurred loss, still there is an accumulated loss to beabsorbed to an extent of Rs.459.36crores ( unabsorbed loss)

(b) Minimum Alternate Tax (MAT) is recognizedand provisioned to anextent of Rs.29.47 crores in Profit & Lossaccount for which thereis no liability on the part of the company to discharge sinceunabsorbed loss covers the same as per the provisions laid downunder Income Tax Act 1961.

Board went through the proposal and annexures. It was observed thatpursuant to Section 128,129 (1), Section 134, there are certain statutoryobligations. With a view to discharge the same and to convene AnnualGeneral Meeting within the time frame Le., 30.09.2015 statutqrily with the

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Audit Comments of Accountant General, Karnataka, Board considered theproposal. In this context following resolutionswere passed.

RESOLVED that, the revisions as proposed to financialstatements of BESCOMfor the financial year 2014-15 viz Balancesheet as on sr' March 2015, statement of Profit & Lossaccountand cash flow statement for the year ending sr' March 2015along with notes be and are herebyAPPROVED.

RESOLVEDFURTHERthat, the revised consolidated financialstatements of BESCOMfor the FY2014-15 viz., Balancesheet asat 31.03.2015. Statement of Profit & Lossaccount and cash flowstatement for the year ending sr' March 2015 along with notesbe and are herebyAPPROVED.

RESOLVEDFURTHERthat, pursuant to section 134 (1) ofCompanyAct 2013 Sri.Pankaj Kumar Pandey,ManagingDirector,Sri.Guru Prasad B.L. Director (Finance) and Sri.K.T.HiriyannaCompanySecretary BESCOMbe and are hereby authorized toauthenticate the said consolidated financial statements alongwith the notes on behalf the company.

RESOLVED FURTHERthat, the General Manager (A&RT)BESCOMbe and is hereby authorized to take necessarysteps forobtainingAudit Commentsfrom Accountant General,Karnatakatoenable company to place the Annual Accounts along withConsolidated Financial Statements before the Annual GeneralMeetingstatutorily to be held before3dh Sept.2015.

SubjectNo. 69/19: Approval for purchaseof solar power from 1-3MW solar projects of land owners andinstitutions and to sign the Power PurchaseAgreement (PPA) as per standard formatapprovedby KERC.

Ref: KERCItr No KERC/S/F-43/Vol-4/15-16/413

dated 17.06.2015 and F-43/ Vol-4 ~af1,d.16.06.2015 24 \ \"

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The Boardwas informed as under:

(1) Government of Karnataka vide Notification dated 22.05.2014 hasissued Karnataka Solar Policy 2014-2021 with a view to add moresolar power generation to the state grid. Subsequently KarnatakaRenewable Energy Development Ltd(KREDL) is nominated as aNodalAgency.

(2) KREDL invited online applications for implementation of 1-3 MWsolar power projects by land owners and institutions. Out of ESCOMwise total allocation, BESeOMis allotted 149 MW

(3) The applications which were received at BESeOMwere uploaded torelevant to website of Government of Karnataka and all thedocuments along with original applications are sent to KREDLduringOct 2014.

The Board perused the following:

(a) Vide GOK order No. EN62jVSCj2014 BESCOMhas been allottedadditional 11 MW

(b) The applicants have come forward to execute the power purchaseagreement(PPA)with BESeOM[General-50,ST-16, SC-6]

(c) The standard format of PPAis approved by KERefor execution ofthe same.

Board deliberated the subject. In view of requirement forimplementation of policy decisions of Government of Karnataka underKarnataka Solar Policy 2014-2021 in the direction of capacity addition tothe State, the Board considered the proposal and passed the followingresolutions in this context:

RESOLVEDthat, for the reasons explained, the actions takenby the MD, BESCOMfor procurement of solar power from 1-3MWsolar projects of land owners and Institutions against theallotment made by GOK/KREDL to BESCOMat the rate determinedand approved by KERC. f J

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(CIN- U04010KA2002SGC03043B)

RESOLVED FURTHER that, MD, SESCOMbe and is herebyauthorized to execute PPA in the standard format approved byKERCas per norms.

Subject No. 69/20: Creation of post of General Manager (Costingand Taxation) by upgradation of post ofDeputy General Manager (Compilation andTaxation) at Corporate Office.

DEFERRED

Subject No. 69/21: Creation of post of Deputy General Manager(F&C) (Regulatory Affairs) by upgradation ofpost of Assistant General Manager (F&C) -(Regulatory Affairs) at Corporate Office.

DEFERREDSubject No. 69/22: Construction of BESCOMIntegrated Control

Centre-2 (BICC-2) building at Rajajinagar,Bangalore on the basis of parameters fixedby BESCOM on EPC (Engineering,Procurement & Construction) contract onTotal Turkey Basis based on the tenderersown design.

Ref: Notice Inviting Tender No BESCOM/GM(DAS& SG)/DGM(CIV)/ BC-19/2015-16/286-ADated 18.05.2015.

The following were submitted and explained:

(1) BESCOM has taken up Distribution Automation Systemimplementation of 11kv network in BMAZarea with the financialassistance of Japan International Co-operation Agency,Government of Japan (JICA) at the total project cost of Rs.S63.70crores. Out of which JICA funding is to an extent of Rs.417.10crores rest of Rs.146.60crores to be borne by BESCOM.

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(2) The above cost excludes cost of Construction of BESCOMIntegrated Control Centers and hence BESCOMhas to bear thesame. Two such centres are planned (one in HSR Layout,Bengaluru). The second centre is proposed at Rajajinagar,Bengaluru at KPTCLleased land at an estimated cost of Rs.15.80Crores. This proposed Control Centre will accommodate the DASCommunication systems, the Control room and other relatedOffices required for DASoperation.

(3) The estimate for the proposed building is prepared by Mis. STUPConsultants (PMC), Bengaluru for Rs.15.80crores.

(4) The tender was invited on e-procurement portal and NIT waspublished in leading newspapers duly following KTPP Actprovisions. Techno-Commercial bids were opened on 11.6.2015.The rates quoted by the responsivebidders are as under:

SI. Name Of the Amount Put to Tender Net Excess %No Bidders. Tender Rs. Amount Excess1 MIs Hombale

Constructions & 15,80,00,000 17,77,50,000 1,97,50,000 12.50EstatesPvt. Ltd

2 Sri S.R.Ravi 15,80,00,000 18,15,26,200 2,35,26,200 14.89Constructions

3 Mis AmruthaConstructions Pvt. 15,80,00,000 19,19,70,000 3,39,70,000 21.50

ltd

The following were perused:

(1) The Tender Scrutiny Committee, BESCOMscrutinized the proposaland committee treated all the bidders as responsive. Out of which,Mis. Hombale Constructions and Estates Pvt. Ltd., is L-1 tendereras per the evaluation made as per the prescribed technical andfinancial criteria.

(2) The subject was taken up by CPCBESCOMat its 83rd CPCmeetingheld on 06.07.2015 and decision was taken to call for negotiationmeeting with L1 bidder to bring down the prices at reasonableandacceptable level. The tenderer(L1) agreed to reduce the quotedprice from 12.50% excessover amount put to tender to 4%.

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Bangalore Electricity Supply Company Limited(Wholly owned Government of KarnatakaUndertaking)

(CIN- U04010KA2002SGC030438)

(3) The comparison of rates is made with similar tenders in otherorganizations like KPWO,KPTCL,BOA, BWSSB,earlier approvedBICC-1building at HSRLayout.

(4) The proposal is audited by the GM(I/A), BESCOMand theprovisions laid down under KTPPAct are scrutinized and budgetprovision will be made from internal source of BESCOMfor the F.Y2015-16 to meet out of CAPEXbudget.

(5) The plan of proposed building, its design etc., were also perusedby the Board.

The Board debated the matter and observed that necessarycompliances in this behalf are made and proposal is placed before theBoard with comprehensive cost benefit analysis. In view of speedyimplementation of OASproject within the time frame, to facilitate relatedactivities, construction of proposed Integrated Control Centre-2 is foundessential. The proposal was considered and following resolutions werepassedin this context:

RESOLVEDthat, for the reasonsexplained, approval be andis hereby accorded to accept the negotiated tendered rate ofMis. Hombale Constructions Pvt. Ltd., Sengaluru atRs.17,68,61,250(Rs. Seventeen crores, sixty eight lakhs, sixtyone thousand, two hundred fifty only) at 11.94% excessover theamountput to tender.

RESOLVEDFURTHERthat, the GM(DAS),SESCOMbe and isherebyauthorized to issueLOIIDWAduly following the stipulatedtender terms & conditions, audit compliances,taxation provisionsand corporatenorms.

Subject No. 69/A01: Changeproposal of DASpackage-I contractunder Bangalore Distribution Up-gradationproject - CommunicationSyste .

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_. _ F-t}?'C.:OMO Bangalore Electricity Supply Company Limited(Wholly owned Government of Karnataka Undertaking)

(CIN- U04010KA2002SGC030438)

Subject No. 69/ A02: Allocation of Revenueexpenditure budget forthe year 2015-16.

The following were appraised in this context:

(1) KERC has approved the revised consolidated ARR for the F.Y2015-16 in the tariff order issued on 02.03.2015. Over and abovethe approved expenditure requires approval of KERCfor passingthrough tariff

(2) The KERCapproved expenditure for the current year 2015-16 is asunder:

5LNo. ParticularsApproved

amount in Crs

1. Power purchase cost including cost of 11840.15transmission.

2. O&M Expenses 1205.01

3. Interest & Finance charges. 751.88

Total 13797.04

(3) The actual expenditure as against the KERCapproved expenditureduring the financial year 2014-15 are indicated as under:

ParticularsApproved Actual expenditure

5LNo expenditure (Provisional)(Rs in Crores) (Rs in crores)

1. Power purchase cost including 11922.09 11918.06cost of transmission

2. O&M Expenses 1110.95 1050.92

3. Interest & Finance charges. 608.44 597.41

Total 13641.48 13566.39


(a) Consolidated revenue budget estimates and allocated budget forthe FY2015-16

Estimated/ Allocated

5LNo. Particulars Requested (Rs(Rs in croress) in crores)

1. Power purchase cost including cost 11840.15 11840.15of transmission.

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2. O&M Expensesa)R&M 73.11 66.74b)Employees cost. 947.05 852.78c)A&G expenses. 226.23 213.66Sub Total 1246.39 1133.39

3. Interest & Finance charges. 722.35 722.35Total(1+2+3) 13808.89 13695.89

(b) Based on the approved ARR for the FY 2015-16 the revenuebudget to be allotted to the respective accounting units forincurring expenditure.

(c) The annexure submitted to the Board has indicated that totalinterest charges Rs.751.88 crores, O&M expenses Rs.1205.01crores and power purchase cost RS.11840.15crores are approvedby KERCin the tariff order 2015.

The subject was debated and Board further observed that estimatedbudget under R&M head of expenditure is more than the KERCapprovedexpenditure. The General Manager(F&R) explained that the revenuebudget is restricted to 95% in case of A&G expenses by keeping Rs.71.62crores as a reserve at corporate office to meet the emergency expenditure.In view of the justification made for the allocation of revenue budget, theBoard considered the proposal and passedthe following resolution in thiscontext:

RESOLVEDthat, for the reasonsexplained, the action takenby the MD, BESCOMin allocating the revenue budget to theaccounting units of BESCOMto an extent of Rs.13,695.89crores(RsThirteen thousandsix hundred ninety five crores andeighty nine lakhs) for the financialyear 2015-16be and is herebyRATIFIED

Subject No. 69/ A03: Usage of spiral earth electrode under RGGVYX plan in BESeOM jurisdiction executed byM/s.SPML.

DEFERRED30

~,.~:.c.~lo_O Bangalore Electricity Supply Company Limited(Wholly owned Government of Karnataka Undertaking)

(CIN- U04010KA2002SGC030438)

Subject No. 691A04: Execution of Balance works of R-APDRPPart-B in Chitradurga & Hiriyur town ofChitradurga District in the Jurisdiction ofBESCOM on partial turnkey basis underpercentage rate quoting.

Ref: Tender Enquiry No: BESCOM/GM/PROJECTSIRAPDRP1BC-14/15-16/10.

The following were appraised to the Board:

(1) The work was awarded to M/s. A2Z Maintenance & EngineeringLtd., Gurgaon on total turnkey basis at a total cost of Rs.29.80crores. Due to non-performance of the contract by the firm, DWAwas short closed and action was taken to black list the firm.

(2) Consequentto short closure of the earlier work award, the balanceworks required to be carried out was assessed in the field andestimate prepared. Considering the materials available with M/s.A2Z Maintenance & Engineering Ltd and providing scope forsupply of materials like pole, insulators, conductors, cable linehardware materials required for the completion of the balancework, amount put to tender was arrived at and tender wasfloated.

(3) The tender was floated vide Enquiry No. BESCOM/GM(Proj)/14-15/10 dtd 0.04.2015 on percentage rate quoting basis. Againstthis enquiry there was no response from the bidder. Hence thetender was re-floated vide Enquiry No. BESCOM/GM (Proj)/RAPDRP/BC-14/15-16/10dtd 25.05.2015 (Amount put to tenderRs. 1341.98 lakhs)

(4) M/s. KGN Electricals, Tumkur is the single participated andIT d bldd f th' t d h h t d dqua lie I er or IS en er w 0 as quo e as un er:

AmountAmount for All inclusive

put tocomparison All inclusive percentage

All inclusiveasper quoted price

tender as Commonpercentage quoted w.r.t in Rs.

SI.NoNameof per SR2014-15

quoted Amount for (for supply&the Firm Common w.r.t comparision

SR2014-(including Amount put (with

erectionall loading contract) in

15in factors) into tender loading Lakhs

lakhs lakhsfactors)

iii1/

31 t:,1,~'",,'n',J


(CIN- U04010KA2002SGC030438)

MIs KGN1. Electricals, 1341.98 1416.15 (+) 35% (+) 27.93% 1811.68

Tumkur


(a) The bank guarantee towards non-performance of contract by M/s.A2Z Engineering & Maintenance Ltd., to an extent ofRs.2,88,09,020/- has been forfeited. Rs.6.70 lakhs is deducted outof the bills of M/s. A2Z Maintenance & Engineering Ltd as apenalty and necessarydeductions are also made out of the billssubmitted by the firm as a penal measure.

(b) The tender evaluation is made duly following the provisions laiddown under KTPPAct. The Tender Scrutiny Committee, BESCOMhas recommended for the proposal at its meeting held on12.6.2015. The said proposal is also audited by the GM(I/A)

(c) The epc at its 83rd meeting held on 06.07.2015 recommended toplace the proposal before the Board after due negotiation with L-1bidder. The negotiations were held on 08.07.2015 and the firmhas agreed to bring down the quoted percentage from 27.93% to25%.

(d) After necessary negotiation all inclusive quoted price is arrived atfor supply and erection contract at Rs.1770.18lakhs. ,

Board went through the proposal and observed that the Governmentof India has proposed to continue RAPDRPduring the XI plan also withrevised terms and conditions as a central sector scheme, with the focus ofthe program for reduction of AT&C loss below 15 0/0, for bringingcommercial viability, for reducing the outages & interruptions withincreased consumer satisfaction. The Board considered the proposal andpassedthe following resolutions in this context:

RESOLVED that, for the reasons explained, GM(Proj),SESCOMbe and is hereby authorized to award the subject work tolone qualified bidder Mis. KGNElectricals, Tumkur at FIRM priceof Rs.1770.1B lakhs(Rs One th3~usand seven hundre~~\seventy

\} I1 \J ~,~ l

B Bangalore Electricity Supply Company Limited"'COM (Wholly owned Government of Karnataka Undertaking)

(CIN- U04010KA2002SGC030438)

lakhs, eighteen thousand only) at 25% excessover the amountevaluatedfor comparisonwith all loading factors against the bidEnquiry No. BESCOM/GM(Proj)/RAPDRP/BC-14/15-16/10 dtd25.05.2015

RESOLVEDFURTHERthat, subject to above, GM(Proj),BESCOMbe and is hereby authorized to issue LOI/DWA as pertenderconditionsand corporatenorms.

RESOLVEDFURTHERthat, GM(Proj), BESCOM,be and ishereby authorized to encash forfeited bank guarantee and toenforce the provisions of law for recovery of liquidated damagesat risk and cost of original contractor, M/s.A2Z Engineeringltd,Gurgaonto cover up escalatedprices consequent to present retender and work award and to call for the explanation of theconcernedfield officers for the delayin executionwhich is directlyattributable to them, if any.

Subject No. 69/ AOS:Conversion of existing LT distribution systeminto HIGH VOLTAGEDISTRIBUTION SYSTEM(HVDS) for the feeders in Kanakapura Urban,Kanankapura Rural, Harohally, Sathnur subdivisions and Huliyurdurga section, Kunigalsub division on partial turnkey basis underpercentage rate quoting.

Reference: Tender Enquiry Nos.1. BESCOM/HVDS/PTK-Ol/15-16/Kanakapura USD2. BESCOM/HVDS/PTK-02/15-16/Kanakapura RSD3. BESCOM/HVDS/PTK-03/15-16/Harohally4. BESCOM/HVDS/PTK-04/15-16/Sathnur5. BESCOM/HVDS/PTK-05/15-16/Huliyurdurga

The following were submitted:

(1) The Govt. of Karnataka has directed to implement the project,High Voltage Distribution System (HVDS) in KanakapuraTalukvide No.EN56 VSC2013 dated 19.09.2014.

33

iU··


(CIN- U04010KA2002SGC030438)

(2) The tenders were invited vide enquiry No.BCP-839/14-15 toBCP-842/14-15 (1st call) on 21.02.2015 under partial Turnkeybasison percentage rate quoting made.

(3) The tenders were invited based on the estimates/DPRsprepared by the field officials vide Enq. No. BCP-839/14-15toBCP-842/14-15(1st call) on 21.2.2015 sub division wise underpartial turnkey basison percentage rate quoting mode, whereinBESCOMhas to supply the Distribution Transformers & ACSRRabbit Conductor and rest of the materials required for thework shall be under the scopeof the contractor.

(4) There was single participation for Sathnur and Harohally Subdivision and no response from the bidders for KanakapuraUrban and Rural Subdivision.

(5) Again, the tender has been refloated for KanakapuraUrbanandRural, Sathnur and Harohally Sub division vide Enq No. BCP-856/14-15 to BCP-859/14-15(2nd call) on 01.04.2015.

(6) A lone bidder has participated for Sathnur and Harohally Subdivision and there was no participation for the tender Enq. No.BCP-856/KanakapuraUrban & BCP-857/KanakapuraRural.

(7) Meanwhile, the tender has been floated vide Enq.No.BCP-848/14-15 (1st call) dated: 25.3.2015 for the work ofimplementation of HVDSin HuliyurdurgaSection, Kunigal Subdivision on partial turnkey basis. Due to the single qualifiedbidder, this tender was dropped. The amount put to tender forthe earlier enquiries are detailed below:

Aprox. Amount putto tender in Rs. Aprox. Amount put

No. ofLakh as per to tender in Rs.

Name of the sub- feedersCommon SR Lakh as per

division/section covered2014-15 Common SR 2014-(Excluding 15(Excluding

Transformer & Transformer)Conductor)

Kanakapura Urban 14 2043.35 2205.98Kanakapura Rural 10 1500.16 1605.07

Harohally 14 1604.34 1737.59

Sathnur 11 1421.60 \ 1495.22

34


(CIN- U04010KA2002SGC030438)

Huliyurdurga T 12 1427.90 2003.57

Total 7997.35 9047.43

(8) Due to poor response from the bidders, the tender was refloated 3rd time for Kanakapura Urban, Kanakapura Rural,Sathnur and Harohally Sub-division and 2nd time forHuliyurdurga section and Kunigal Rural sub-division with slightmodification in the scope of the work under partial turnkeybasis on percentage rate quoting mode, wherein BESCOMhasto supply the Distribution Transformers and rest of thematerials required for the work shall be under the scope of thecontractor.

(9) The estimates have been revised further duly following theguidelines/directives issued by the KERCin order to bring downthe overall cost of the project. The details are as follows:

Aprox. Amount put

No. ofto tender in Rs.Lakh as per

Enquiry No. feeders Common SR2014-covered 15 (Excluding

Transformer)PTK-01/KanakapuraUrban 14 2031.40PTK-02/KanakapuraRural 10 1505.53PTK-03/Harohally 14 1667.99PTK-04/Sathnur 11 1496.25PTK-05/Huliyurdurga 12 1566.59

Total 8267.76

Tender was re-invited on e-Procurement portal and the Notificationwas published in leading News Papers on 07.06.2015 and the subjectEnquirywere made available on Website https://eproc.karnataka.gov.in:

(10) Scope of the work covers running of 11 kV lines by convertingexisting LT network or extension of new HT line upto cluster of pumpsets, erecting small capacity (25 kVA instead of 63/100 kVA)distribution transformers and extending supply to these pump setswith least LT lines, preferably by insulated overhead cables (Aerial

r.35

(11)


(CIN- U04010KA20025GC030438)

Bunched Cables) system. Because of using smaller rating 3 phasetransformers, length of LT lines is considerably reduces and powersupply shall be mainly through HV (11 kV) lines.

The expected benefits are as under:1) Better quality & reliability of power supply to IP consumers.2) Reduction in T & D and AT & C losses.3) Improved load management.4) The failure rate of distribution transformers due to LT line short

circuits and unauthorized LP set connectionswill be reduced.5) Facilitates conducting systematic I.P sets census and assessment

of LP Set connected loads.6) Facilitates the accurate assessment of LP set consumption &

distribution system losses.7) Facilitates prevention of unauthorized LP set connections & their

easy identification if connected.8) The fatal non-departmental accidents occurring in rural areas due

to snapping of LT line conductors & inadequate LT line groundclearancesdue to conductor saggingwill be completely prevented.

The Board went through the proposal & annexures and the followingwere perused.

(a) The techno-commercial bid was opened on 26.06.2015. Thefollowing bidders were participated against each enquiry. ~

No of51.No Enq.No bidders Name of the bidder

participated

1 PTK-Ol/Kanakapura 01 1.M/s Tranaglobal Power Ltd.,Urban Bangalore

2 PTK-02/Kanakapura 01 l.M/s Tranaglobal Power Ltd.,Rural Banqalore

1.M/s Tranaglobal Power Ltd.,Bangalore

3 PTK-03/Harohally 042. M/s Raja Electricals, Tumkur3. M/s ME Electricals, Bangalore4. MIs Shivachetana electrical,

Sindanur

4 PTK-04/ Sathnur 011. M/s Sri Manju Electricals,

Koratagere \,I

36

rJS__.co_Bangalore Electricity Supply Company Limited

(Wholly owned Government of Karnataka Undertaking)(CIN- U04010KA20025GC030438)

1. Mis Raja Electricals, Tumkur

5 PTK-051 Huliyurdurga 02 2. Mis Sri LakshminarashimaElectricals, Tumkur

(b) The evaluation reports are scrutinized by the Tender ScrutinyCommittee (TSC) at its meeting held on 01.07.2015. Thetechno-commercially responsive and non-responsive bidders.details are also indicated as under:

No ofEnq.No bidders Name of the bidder Remarks

participatedPTK-01/Kanakapura 01

1. Mis Tranaglobal Power Ltd., ResponsiveUrban Bangalore

PTK-02/Kanakapura 012. Mis Tranaglobal Power Ltd., Responsive

Rural Bangalore1.Mis Tranaglobal Power Ltd., Non-Responsive

Bangalore2. Mis Raja Electricals, ResponsiveTumkur

PTK-03/Harohally 04 3. Mis ME Electricals,Bangalore

Non-Responsive

4. Mis Shivachetana electrical, ResponsiveSindanur

PTK-04/Sathnur 011. Mis Sri Manju Electricals, Responsive

Koratagere1. Mis Raja Electricals, Non-Responsive

PTK- Tumkur05/Huliyurdurga

02 2. Mis Sri Lakshminarashima ResponsiveElectricals, Tumkur

AmountAmount for All inclusive

put tocomparison percentage All inclusive

tender asas per All inclusive quoted w.r.t quoted price

Name of theCommon SR percentage Amount in Rs.

Enq. Noper 2014-15 quoted w.r.t evaluated for (for supply &

Firm CommonSR 2014-

(including all Amount put comparison erection

15inloading to tender (including contract) in

lakhsfactors) in loading Lakhs

lakhs factors)

\~ V/ -_, /'

37 .~~~/ ,. ,'"/\ ,~J.,*)l~t·,~/

iA"i .C !)!,,~

(c) The price bids of techno-commercially responsivebidders asnoted above were opened on 03.07.2015 and evaluated asunder :


(CIN- U04010KA2002SGC030438)

MisPTK-Ol1 Transglobal (+)

Kanakapura Power Pvt. 2031.41 2141.78 (+) 39.8% 32.60%2839.91

USD Ltd,Banqalore.

MisPTK-021 Transglobal (+)

Kanakapura Power Pvt. 1505.53 1587.33 (+) 39.8% 2104.74

RSD Ltd,32.60%

Bangalore.

MisPTK-031 Shivachetana 1667.99 1759.92 (+) 27.00% (+) 20.37% 2118.35Harohally Electricals,

Sindanur

Mis SriPTK-041 Manju 1496.25 1577.46 (+) 18.72% (+) 12.61% 1776.35Sathnur Electricals,

Koratagere

Mis Sri

PTK-051Lakshminara

shima 1566.59 1653.51 (+) 19.00% (+) 12.74% 1864.24Huliyurdurga Electricals,

Tumkur

(d) The budget provision for the FY2015-16 is made in the form of 'lloan to be availed from M/s.RECand MIs. PFC.

(e) The payback period is as under:

Name of the sub Benefit to PayBackdivisionIsection Cost Ratio Period

KanakapuraUrban 1.75 5.38KanakapuraRural 1.39 5.65

Harohally 1.41 5.65Sathnur 1.56 5.52

Huliyurdurga 1.62 5.72

(f) The proposal is placed for approval duly following theprovisions laid down under KTPPAct and same is also auditedby the General Manager (l/A) BESeOM. \\\~_,

38 \~,i ":

-------------------------- - -- - - -


(CIN- U04010KA2002SGC030438)

(g) As per Central Purchases Committee decision at its meetingheld on 06.07.2015, a study report is submitted by the fourmembers "Study Team" headed by the General Manager(Projects) on visit to MIs. Southern Power Distribution Companyof AP Ltd., Thirupathi by studying various aspects including costcomponents on similar works under HVDS scheme atAndra Pradesh.

(h) Necessary negotiations are made with L1 bidders. Thetenderers in respect of Sathanur Sub Division and Huliyurdurgasection did not agree for further reduction of quoted pricessince the same are already reasonable. After the finalnegotiation, the tenders in respect of KanakapuraUrban, Kanakapura Rural Sub Divisions, are droppedsince the quoted prices are abnormally high even afternegotiation.

(i) The Central PurchasesCommittee, BESCOMdirected GeneralManager (Projects) to place proposal in respect of Harohally,Sathanur Sub Division and Huliyurdurga section before the 69th

Board Meeting with a further direction to re-float the tender inrespect of KanakapuraUSDand KanakapuraRSD.

U) At this juncture, SrLM.Nagaraj, Director suggested that ABCable usage can be made instead of bear conductor inexecution of HVDSworks. However Sri.Gaurav Gupta, Directorexpressed that, the rural feeders, it is not advisable andfeasible to go for AB cable.

Board debated the subject and observed that implementation ofHVDSis one of the directives issued by the Govt. of Karnataka as well asKarnataka Electricity Regulatory Commission(KERC)with a view to reducethe T&D losses in the distribution system substantially. Further, Boardobserved that, there is every possibility of reduction in T&D loss to anextent of 6%-7% on successful implementation; besides reduction intransformer failure rate considerably. It was also observed that, thesubject matter of implementation of HVDS in one taluk is one of thecommitments in the recent budget speechof Hon'ble Chairman, Karnataka.

After detailed deliberations the following resolutions were pass ~39 I

~.~.~.:c"'oS Bangalore Electricity Supply Company Limited_ (Wholly owned Government of Karnataka Undertaking)

(CIN- U04010KA2002SGC030438)

RESOLVEDthat, for the reasonsexplained,approval be andis herebyaccordedto award the work of "conversionof existingLT distribution system into HIGH VOLTAGEDISTRIBUTIONSYSTEM(HVDS) for the feeders" in Harohally, Sathanur SubDivisionsand Huliyurdurgasection (KunigalSubDivision), underpartial turnkey basis under percentage rate quoting againsttender enquiry(l) BESCOMjHVDSjPTK-3j15-16(2) BESCOMjHVDSjPTK-04j15-16jSathnur(3)BESCOMjHVDSjPTK-05j15-16jHuliyurdurga to the respectiveLl qualified biddersasper tenderconditions& corporatenorms.

All inclusivepercentage All inclusiveoffered after quoted price in Rs.negotiation w.r.tEnq.No Amount evaluated (for supply &

for comparison erection contract)

(including loading in Lakhs (revised)

factors)PTK-Ol/Kanakapura USD 25.00% 2548.12PTK-02/Kanakapura RSD 25.00% 1885.40

PTK-03/Harohally 19.43% 2004.70

PTK-04/Sathnur 12.62% 1706.60PTK-05/ Huliyurdurga 12.76% 1665.92

Subjectto following:

(1) Adequate budget provision shall be ensured in therelevantbudget.

(2) Thereshall be a concurrent audit of work during itsexecutionby empaneledthird party.

(3) On completion of the work post work evaluation shallbe carriedout by empaneledthird party.

(4) Exclusionof supply transformerfrom the scopeof workshall be ensured.

(5) Work shall be completed & commissionedwithin 12months from the date of issueof work award including

monsoon period. 40 \~). "'" ,"

~~'~ 'I ,


(CIN- U04010KA2002SGC030438)

(6) No price variation is allowed for any componentofwork.

(7) Postaward tax liability if any shall be absorbedby thebiddersonly.

Subject No. 69/ A06: BESCOM'sproposed initiatives for AdditionalRevenue Mobilization.

DEFERRED

Subject No. 69/ A07: Approval for availing loan from M/ s.RECforHVDSscheme.

The following were submitted:

(1) The Board has approved the implementation of HVDSscheme in 5sub-divisions of BESeOM at its so" Board meeting held on05.10.2013. The sub-divisions are-Doddaballapura, Tumkur RSD-1, Tumkur RSD-2,Chikkaballapuraand kengeri.

(2) The project financing has been availed from M/s.RECas a loan onlong term basis with assistanceof 900/0 of the project cost for theprojects, Doddaballapura, Tumkur RSD-1 and Kengeri subdivisions. However in rerspect of Tumkur RSD-2 it is 75% ofproject cost as the Government of Karnataka has agreed toprovide 25% equity.

(3) The above works are tendered and awarded on turnkey basisunder rate contract as under:

Total Project LoanAmount as

SI. Name of the sub Scheme No of per Rate

No division code Feederscost (Lakhs) Sanctione contract costas per SR d by REC. in Lakhs.

1DODDABALLA 1159 31 14249.29 12824.36 19300.00

PURA2 TUMKURRSD-1 1160 11 1484.91 6136.41

4508.0814625.00

3 TUMKURRSD-2 1161 8 3381.06

4CHIKKABALLA 1158 6 3181.2 3403.08 3480.00

PURA5 KENGERI 1151 6 1402.64 1262.38 3480.00

Total 68 31426.18 21601.35 40885.00

41~i

(ri---!,111ill·HI

I.,

"1, ) ~'\l;j


(CIN- U04010KA2002SGC030438)

(4) As seen from the above, the total cost of the project as awarded isat Rs.408.85 crores against the detailed project cost of Rs.314.26crores with a gap of Rs.94.59crores.


The DPR earlier were prepared as per the SR rates and the loansanctioned for these works on the basis of estimates prepared as per SR.However as the works are awarded as per tender cost, the additional loanneed to be availed to meet the additional cost of project. There is a largegap between the original DPR cost and the actual awarded cost. Theproposal is placed before the Board seeking approval to avail loan foradditional project cost from M/s.REC.Having gone through the proposal,Board considered the same and passed the following resolutions in thiscontext:

RESOLVEDthat, for the reasonsexplained, approval be andis hereby accorded to avail the loan to an extent of Rs. 359.02crores from M/s.RECagainst alreadysanctioned loan of Rs.276.07crores to meet the gap of awarded cost and DPRcost in respect ofHVDSscheme works approved at 6dh Board of Directors meetingof BESCOMand subsequentorders.

RESOLVED FURTHERthat, approval be and is herebyaccorded for the revised cost of HVDSworks awarded on ratecontract basis at the cost of Rs.402.02 crores(Rs Four hundredtwo crores and two lakhs only} in respect of Doddabal/apura,Chikkabal/apura, TumkurRSD-1and TumkurRSD-2sub-divisionsofBESCOM.

RESOLVEDFURTHERthat, the GM(Projects} and GM(F&R},BESCOMbe and is hereby authorized to take needful action foravailing loan asproposed from M/s.REC (\ ·

\"'\,1,\\~ \:i~, ,42

!) Sa n9a I~h~lI~ !!:..~r!~~!rn!~~ft~n~~a~~~.:!~n~im ited(CIN- U04010KA2002SGC030438)

SubjectNo. 69/A08: Ratification of the action taken by BESeOMinextending the contract period of the Contractorder No.18/2014-15 dated 30.06.2014placedon M/s.Larsen&.Toubro Ltd., for saleof single phase 5-30 Amps static energymeters in retails outlets of BESeOMupto30.11.2015 or till the finalization of tenderNo.BESeOM/GM(M&.EA)/40/2015-16whichever is earlier at all inclusiveunit FORDprice of Rs.90S.14.

The following were submitted in this context:

(1) The Board at its 63rd meeting held on 04.03.2014 has directedBESeOMto issue orders to M/s.Larsen & Toubro top sell theirmeters at retail outlets of BESeOMupto 30.06.2015 or till thefinalization of fresh tender whichever is earlier.

(2) The said decision/approval is given after the detailed deliberationat its 63rd meeting held on 04.03.2014, taking into consideration ofBoard decision of GESeOMand co-opting the same at BESeOM.

(3) The MD, BESeOMwas authorized in the said meeting to issuenecessary contract order to M/s. L&T ltd for sale of LT singlephase 5-30 Amps meters at retail outlets of BESeOM at allinclusive unit FORDprice of Rs.905.14 upto 30.06.2015 or untilfinalization of new tender whichever is earlier.

(4) Subsequently approved common PQRand specification for singlephase meters and three phase whole current meters are receivedfrom Government of Karnatakaon 30.03.2015.

The following were perused by the Board:(a) Two tenders are floated by the GM(M&EA) on 06.04.2015 after

receipt of common PQR. One for sale of LT single phase 5-30Amps static Energymeters in retail outlets of BESeOMfor a periodof three years. Another for supply of same to various stores ofBESeOM.

(b) After the evaluation of above two tenders, sample meters oftechno commercially responsive firms are sent to ePRI for testingand tender finalization may take few months. j

43 l~'-'i ' i;.r i !11· i11

~•••co_Bangalore Electricity Supply Company Limited

(Wholly owned Government of Karnataka Undertaking)(CIN- U04010KA2002SGC030438)

(C) At ss" Board meeting held on 16.05.2015 approval is accordedtocall an exclusive tender as per Government of KarnatakaapprovedPQR and technical specification towards replacement of singlephaseelectromechanicalmeters by electrostatic meters.

(d) The present proposal is for ratification of action taken forextension of contract order with M/s. L&Twhich is'issuedvide contract order No 18/2014-15 dtd 30.06.2014 byissuingOfficial Memorandumvide No.BESCOM/GM(M&C)/15-16/cys-53/ 13.07.2015for sale of single phase5-30Amps static energy meters in retail outlets of BEseOMupto 30.11.2015 or till the finalization of tender No.BESCOM/GM(M&EA)/40/2015-16whichever is earlier atall inclusiveunit FORDpriceof Rs.905.14.

(e) M/s. L&T is authorized to sell the meters for new connectionsandfor replacement of defective (MNR) meters only in the areaspecified under contract order No. 18/2014-15 dtd 30.06.2014.

Board went through the proposal and matter was debated at length.Sri. Gaurav Gupta, Director, expressed his views that meters being theassets of BESeOM,irrespective of whether BESeOMis procuring entity orpublic facilitator, there should be a competitive rates. May be theconsumersare buying meters at retail outlets approved by BESeOM.In theprocess, in order to maintain transparency, there should be a fair decisionto select a best manufacturer at most competitive prices. The tenders arefloated which are to be finalized should be commensurate with thetechnical parameters evolved by the company and the design andspecification are the important parameters. As such the followingobservations made by Sri. Gaurav Gupta, Director were noted by theBoard:

(a) There should be conformity to BESeOM distribution systemtechnically with regard to specificationand design of meter.

(b) There should be termination of contract order without extendingbeyond one year generally for any contract. However since theprocess of selection of agency for meters is very long drawnprocess due to testing etc., as indicated by MD, BEseIM, it wassuggested that contract should be for two years. 1.\ \

\\ II \

i0j\ [) I44 )J, . \ .•

---------- - - . - - -


(CIN- U04010KA2002SGC030438)

(C) The tendering processwhich is already taken up to be finalized atthe earliest.

After detailed deliberations the proposal for ratification of extensionorder which is already issued for the contract order No. 18/2014-15 dtd30.06.2014 was considered and the following resolutions were passed inthis context:

RESOLVEDthat, for the reasonsexplained, the action takenin extending the contract order No. 18/2014-15 dtd 30.06.2014placed on M/s. Larsen& ToubroLtd for sale of single phase 5-30Amps static energy meters in retail outlets of BESCOMupto30.11.2015 or till the finalization of tender No. BESCOM/GM/M&EA/40/2015-16 whichever is earlier at inclusive unit FORDprice of Rs.905.14 (RsNine hundred five and ps fourteen only) beand is herebyRATIFIED

RESOLVEDFURTHERthat, the GM(M&C),BESCOMbe and ishereby authorized to take all necessaryactions as per corporatenorms.

Subject No. 69/ A09: Ratification of the action taken by BESCOMinextending the contract period of the Contractorder No.1319/2011-12 dated 30.08.2011placed on M/s.Landis+Gyr Ltd., Kolkata forsale of single phase S-30Ampsstatic energymeters in retails outlets of BESCOMup to30.11.2015 or till the finalization of tenderNo.BESCOM/GM(M&EA}/40 /2015-16whichever is earlier at all inclusive unit FORDprice of Rs.90S.14.

The following were explained:

(1) Contract order No. 1319/2011-12 dtd 30.8.2011 was placed onM/s. Landis & Gyr, Kolkata for sale of LT single phase 5-30 Ampsstatic meters in retail outlets of BESCOMfor two years with avalidity period upto 05.08.2013

(2) However vide order No. BESCOM/GMEP/DGMEP/13-14/7849-92dtd 03.09.2013 extension order was issued extending th validity

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period till 05.02.2014 or till finalization of new tender. Further videno. BESCOM/GM(M&e)AGM2/B-14cys 87 dtd 12.02.2014 furtherextension order was issued extending the contract upto30.06.2014 or till finalization of new tender whichever is earlier.

(3) Further, Board at its 63rd meeting held on 04.03.2014 has directed. to issue orders approving M/s. Lasen& Toubro to sell their metersat retail outlets of BESeOMupto 30.06.2015 or till the finalizationof new tender whichever is earlier.

(4) Subsequently approved common PQRand specifications for singlephase meters & 3 phase whole current meters were received on30.3.15 from GOKvide letter No EN/89/VSC/2014/26.3.15.

(5) BESCOMfloated the below mentioned two tenders on 6.4.15 uponreceipt of approved specification& PQR:(a) Tender No BESCOM/GM(M&EA)40/2015-16 /6.4.15 for sale

of LT Single Phase5-30 Amps Static Energy Meters in RetailOutlets of BESCOM,Bangalorefor a period of three years.

(b) Tender No BESeOM/GM(M&EA) 41/2015-16 /6.4.15 forsupply of LTSingle Phase5-30 Amps Static EnergyMeterstovarious stores of BESCOM. '"'

(6) The evaluation of above two tenders are under progress andsample meters of the techno commercially responsive firms aresent to CPRI for testing. The process of tender finalization maytake another few months.

Board perused the following:Official Memorandum issued vide No. BESCOM/GM(M&C)/15-16/

Cys-52/13.7.15 was placed to extend the contract period of the Contractorder No. 1319/2011-12 dated 30.8.2011 placed on M/s Landis + Gyr Ltd,Kolkata for sale of single phase 5-30Amps static energy meters in retailoutlets of BESCOMupto 30.11.2015 or till the finalization of tender NoBESeOM/GM(M&EA) 40/2015-16 whichever is earlier @ all inclusive unitFORDprice of Rs.905.14.The firm is authorized to sell the meters for newconnections and for replacement of MNR meters only. The areas ofoperation to be continued as mentioned in the Contract order No:Extension 1319 (A) /2014-15. Boarddebated the matter. The \~.iervationsmade by Sri. GauravGuptawere noted by the Board.~ ,

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(a) There should be conformity to BESCOM distribution systemtechnically with regard to specification and design of meter.

(b) There should be termination of contract order without extendingbeyond one year generally for any contract. However since theprocess of selection of agency for meters is very long drawnprocess due to testing etc., as indicated by MD, BESCOM,it wassuggested that contract should be for two years.

(c) The tendering processwhich is already taken up to be finalized atthe earliest.

Having gone through the proposal. MD, BESCOMhas already takenaction to extend the contract order till 30.11.2015 or till the finalization oftender No. BESCOM/GM/(M&C)/40/2015-16whichever is earlier. Boardconsideredthe proposal and passedthe following resolutions

RESOLVEDthat, for the reasonsexplained, the action takenby MD, BESCOMis extending the contract period of the contractorder No. 1319/2011-12 dtd 30.08.2011placed on M/s. Landis+Gyr ltd, Kolkata for sale of single phase 5-30 Amps static energymeters in retail outlets of BESCOMupto 30.11.2015 or till thefinalization of tender No.BESCOM/GM(M&EA)40/2015-16whichever is earlier @ all inclusive unit FORD price ofRs.905.14(Rs.Nine hundred five and ps fourteen only) be and isherebyRATIFIED.

RESOLVEDFURTHERthat, the GM(M&C),BESCOMbe and ishereby authorized to take all necessaryactions as per corporatenorms.

Subject No. 691AiD: Informations related to recruitment done inBESCOMin last 2 years.

DEFERREDSubject No. 691All: Final report of "Manpower Assessment"

submitted by M/s.National ProductivityCouncil- reg.

DEFERRED

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Subject No. 69/ A12: Proposed Budget (CAPEX) for the year2015-16.

The Boardwas broadly informed that:

(1) Various capital works are taken up across BEseOMunder planand non-plan heads of expenditure Broadly the works areclassified into spill over works and new works for the currentfinancial year.

(2) The percentage for expenditure incurred against the capexbudget is 54.40% for the FY 2014-15 against sanctionedbudget of RS.2604.46crores, amounting to Rs.1415.67 croresonly.

(3) The status of booking of expenditure during past 5 years asunder.

51. Name of the Budget Expenditure% of

ExpenditureNo. year allocated booked incurred1 FY2010-11 750 448.28 59.772 FY2011-12 990.00 557.67 56.333 FY2012-13 1311.46 803.90 61.294 FY2013-14 1947.21 1072.01 55.055 FY2014-15 2604.46 1415.67 54.36

(4) For the reasons which are beyond the control of organizationfor execution of targeted works are-right of way problem, poorresponsefrom contractors to take up the work, non-submissionof bills by the contractors before the end of the financial yearetc.,

(5) The works proposed to be taken up during the FY 2015-16under scheme works are (a) RE,SCP& TSP Govt. sponsoredschemes (b) service connection and drinking water supplyworks (under plan works).

(6) The work proposed to taken up under non planned workscategory covers distribution loss reduction plan by taking upworks like 11KVevacuation/link line works, prOViding\\~~dditional

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distribution transformers centers, and strengthening of HT/LTnetwork including OIH and UGcable works.

(7) The coverage of works under Govt.of India schemes newlyformulated are: Deendayal Upadhaya Gram Jyothi Yojana(DDUGJY), Integrated Power Development Scheme IPCS,Niranthara Jyothi Yojana (NJY), High Voltage DistributionSystem (HVDS), RGGVY12 plan, R-APDRPPart-A, R-APDRPPart B, Distribution Automation System (DAS), Smart GridProject, DemandSideManagement (DSM)etc.,

(8) The benefits derived out of taking up of various capital worksare:

(a) Reduction in failure of distribution transformers.(b) Reduction in line losses.(c) Reduction in power supply interruptions.(d) Increases consumer satisfaction.(e) Improve the reliability and quality of the power supply.(f) Improved load management.(g) Over loading of distribution transformers are avoided,

facilitates planning for the future load growth.(h) Improved power factor.

The Board perused the following:

(a) Budget proposal placed against spillover works of FY 2014-15to an extent of Rs.1589.59 crores [against the estimated costof Rs.1589.59crores]

(b) Budget proposal placed against new works of current year(FY 2015-16) to an extent of Rs.1305.65 crores [against theestimated cost of Rs.3545,42crores].

(c) Total budget proposal placed to an extent of Res.2895.24crores [against estimated cost of Rs.5135.01crores].

(d) The historical data submitted before the Board has shown thatat an average 57.36% only the capital expenditure is bookedduring last five years.

Reckoning the above, the Board felt that, with all probability, thebooking of capex may not go beyond 60% in the current year also.SrLGaurav Gupta Director, sought the details regarding the source of

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funding as to whether the samewill be met out of internal sourcesor fromborrowings. MD explained that, the schemes like NJY, Phase I,II & III,40% funding will be from Govt. of Karnatakaand balance 60% will be outof borrowings. The HVDSschemework will be funded by GOKto an extentof 25% and balance 75% in the form of borrowings. MD further explainedthat for the following schemeworks, the funding is being made as under:

SI,No. Particulars of the Work Source of fundingGOI GOK Loan

1 R-APDRP Part A PFCgrant andBESCOMfund

2 R-APDRP Part B 25% --- 75%3 RGGVY 12th Plan 90% ---4 DAS Loan from JICA and--- --- BESCOMfund5 Smart Grid --- --- BESCOM fund6 DDUGJY 60% 10% 30%7 IPDS 60% 10% 30%

The General Manager (F&R) further explained that in the followingpattern of funding is going to be sourcedduring the FY2015-16. ,

(a) Borrowings / Loans(under NEFwith back endinterest subsidy)

(b) Govt.of India/Grants(c) Govt.of KarnatakaGrants(d) Internal Sources

Total

Rs. 2070.26 crores

Rs. 177.30 croresRs. 300.62 croresRs. 347.06 croresRs. 2895.24 crores

Board further felt that, the borrowings should be avoided as much aspossible and to avail the grants from Gal, GOK, and internal source onlyfor completing the capital projects keeping in view the time gap between

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I F"II k• or spa overwor s

SI.NoExpenditure to be

Particulars of the works booked for. FY 2015-16A General Work1 11 KVEvacuation& Link Lines 44.89

Safety and Strengthening of2 HT/LT network in BMAZunder 4.05

RCworks (AB cable works)3 HT Reconductoring/UGCable 15.96

4 LT Reconductoring 21.84

5Additional/Enhancement of 32.60DTCsPlannedworks Gangakalyana/ 23.21RE/ SCP/ TSP/ )Plannedworks (Drinking Water 12.24Supply)

6 Plannedworks (Service 33.74connection works)A/P/S to IP sets (under General 3.7seniority

7 Local Planninq 36.23Safety Measures/ Hazardous

8 (shifting DTCat school 12.18premises)

9 AFB 13.8410 AB Cableworks 2.41

Cable termination works for11 replacement of RMU'Sunder 1.18

DAS12 Commissioningof DASRMU 0.313 Tender S.U.R.E 28.7814 Spill Over old 2.5315 Iron pole replacement 8.1916 LSCables 0.2217 Civil works 30

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18 Total 328.09B Projects

a) Nirantara Jyothi Phase1 3.2719 b) Nirantara Jyothi Phase 2 187.7820 Distribution Automation System 120.8721 R-APDRP,PART-A 6022 R-APDRP, PART-B 72.3223 HVDSWORKS 334.4524 Providing infrastructure to UIP 298.0525 RGGVY12thplan 4026 IT initiative 12.99

Distribution transformer centerMetering, Prepaid meters,supply of SMC boxes, MNR

27 meters, 11 KV feeder loss 131.77software, pending bills of MjsGenus and Electro Mechanicalmeters by Electro Static meters

28 Total 1261.5Grand Total 1589.59

II. New Proposals(Amount in Crores)

Expected

SI.expenditure Sources of

No. Particulars of the works to be Fundingbooked forFY 2015-16

B Distribution LossReductionsI SystemImprovement Works

11 KV Evacuation & LinkCBjBOMj

1 64.9 RECjNEFLines JSBMStrengthening of HTjLT CBjBOMj

2 network including OHjUG 68.25 RECjNEFcable and AB cable. LSaM

\' II

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3 Works under SDP 23.79 GOK

4 HT Reconductoring 43.17 CBjBOMj5 LT Reconductoring 48.85 RECjNEF

6Additional/Enhancement 45.98 ISBMof DTCs

7 Infrastructure to 63.31 REC/NEFunauthorized IP setsPlannedworksGangakalyanaj REI SCPj 33.63TSPj)Arranging power supply to CBjBOMI

8 IP Sets 5.63 REC/NEF(under General Seniority) ISBMPlannedworks (Drinking 15.19Water Supply)Plannedworks (Service 59.15connection works)Total 468.84

Reduction of AT&C LossesC

d) AMR for powerinstallation for morethan 25 HP, pilotstudy for SRTPV.

97.5

5.92

6.5

0.68

9

Boundary meters for allinter Escoms and inter

10 subdivision, ProvidingGPRSmodems to DTCs,HT and boundary

12.13

a) Replacement ofElectromechanicalMeters by StaticMeters

b) Prepaid meters andother

c) Replacement of MNRmeters

53

GOI/GOKIRECjNEF

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meters, Providing ETVmeters, Consumer index-pilot project

DTC Meteringprogramme Non RAPDRP 5 REC/NEF

11 AreaTotal 127.715

D Reliability Improvement/Safety Works:CB/BOM/

12 Local Planning 53.472 REC/NEF/SBM

Safety Measures/ 27.7213 Hazardous locations

Total 81.192E Projects

Nirantara Jyothi Scheme 25.91 GOK/REC/NE14 Phase II (Annex II) F

Nirantara Jyothi Scheme 71.89 GOK/REC/NE15 Phase III (Annex II) F16 HVDS works (Annex II) 54 GOK/REC

17 RAPDRPpart A (Annex 9 PFC/ BESCOMII) Fund

18 DAS (Annex II) 7.72 JBICCB/BOM/

19 DSM (Annex III) 158.37 REC/NEF/SBM

20 Smart Grid (Annex II) 10 BESCOMFund

21 DDUGJY (Annex II) 38 GOI/GOK/REC/NEF

22 IPDS (Annex II) 45.7 GOI/GOK/REC/NEF

One time maintenanceCB/BOM/

23 133.02 REC/NEF(Annex II) /SBM

Total 553.61 \\.\54 \~~~\

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F Others24 Civil EngineeringWorks 10

25 T&P articles 20

26 IT Initiatives 30.327 Emergencycalamity 4

For Third partyinspection, formation ofR&D and new projects

CB/BOM/i.e replacement of 2/4AC5R by rabbit REC/NEFconductor, Replacement /5BM

28 of 250KVA by 63/250 10KVA in rural area,Replacement of Bareconductor by Coveredconductor in highly theftprone area, GI5 for non-RAPDRParea

Total 74.3TOTAL(A+B+C+O+E+F) 1305.65

Grand Total (Spillover andNew works) 2895.24

(1589.59+ 1305.65)

The matter was debated at length. In view of requirement for speedyexecution of capital works within the target period the Board consideredthe proposal and the following resolutions were passed in this context:

RESOLVEDthat, for the reasonsexplained, approval be and inhereby accorded for the capital expenditure (CAPEX)budget ofRs.2895.24 crores (Rs.Two thousand eight hundred ninety fivecrores, twenty four lakhs only) for the FY2015-16 subject to thefollowing.

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(1) Theexpenditure shall be madejudiciously so asoptimum level of return on investments. "


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(2) Theworksshall be executedby ensuringadequatebudgetavailablefor the current year.

(3) The concurrence/approvalsof KERCshall be obtainedwhereverstipulated.

(4) All spill over works shall be completedwithin the currentfinancialyear.

(5) Monitoring mechanismshall be evolved which shall becontinuous& regular to keepcontrol over the progressofworks to avoidcostand time overrun.

(6) Fundingsourcesshall be exploredby giving least priorityto commercial borrowings. GOI/GOK grants shall beavailedwithin thestipulated time frame.

RESOLVEDFURTHERthat, the CGM(CA)be and is herebyauthorized to re-allocate the budget within sanctionedlimit toZones/Circles/Divisions and to take necessary actionsconnectedtherewith.

..

Subject No. 69/ A13: Upgradation of General Manager (InternalAudit) post to that of Chief General Manager ~(Internal Audit) (Financial Advisor (Audit)post - reg.

Meeting adjourned "SINE DIE" with vote of thanks to Chai~ ~~~

Date: 111 ~(\~

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-- d.:.o bangaloreelectricity supplycompanylimited · -- d.:.o ~yj.~-"...

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