TRANSMISSION SERVICE AGREEMENT BY PRASHANT SHARMA ADDL. GENERAL MANAGER (COMML.)

1. TRANSMISSION SERVICE AGREEMENT BY PRASHANT SHARMA ADDL. GENERAL MANAGER (COMML.)

2. TRANSMISSION SERVICE AGREEMENT • OBJECTIVE • GOVERN THE PROVISION OF TRANSMISSION SERVICES AND CHARGING AS PER CERC (SHARING OF INTER STATE TRANSMISSION CHARGES AND LOSSES) REGULATIONS, 2010 • PARTIES TO THE AGREEMENT • CENTRAL TRANSMISSION UTILITY (CTU) • ISTS LICENSEES (EXISTING & NEW LICENSEES) • DESIGNATED INTERSTATE TRANSMISSION CUSTOMERS (DICS) INCLUDING AN ISGS WHO WAS NOT A SIGNATORY TO BPTA

3. FEATURES • CAN BE AMENDED • EXISTING BPTAs / TSA SHALL STAND MODIFIED BY THIS NEW TSA (AFTER APPROVAL BY CERC), • ANY NEW DIC OR ISTS LICENSEE, FOR THE PURPOSE OF AVAILING OR PROVIDING ISTS SERVICES SHALL ENTER INTO A SUPPLEMENTARY AGREEMENT

4. EFFECTIVENESS OF THE AGREEMENT • SHALL BE EFFECTIVE WITH EFFECT FROM 01 JANUARY 2011 OR ANY SUCH DATE AS NOTIFIED BY CERC. • WITH RESPECT TO NEW DICS AND ISTS LICENSEES, THEY WILL BE PARTY TO THIS AGREEMENT FROM THE DATE OF SIGNING OF THE RELEVANT SUPPLEMENTARY AGREEMENT, AS EXECUTED BY THE CTU AND THE NEW DIC OR ISTS LICENSEE, AS THE CASE MAY BE. • WITH RESPECT TO NON-ISTS LICENSEES WHOSE ASSETS HAVE BEEN CERTIFIED AS BEING USED FOR INTERSTATE TRANSMISSION BY THE REGIONAL POWER COMMITTEES (RPCS), THIS AGREEMENT SHALL BE EFFECTIVE WITH EFFECT FROM THE DATE OF SUCH APPROVAL OR CERTIFICATION COMING INTO FORCE.

5. INTERSTATETRANSMISSION SYSTEM (ISTS) • EXISTING ISTS • NEW ELEMENT DECLARED UNDER COMMERCIAL OPERATION BY THE ISTS LICENSEE (INTIMATED TO THE DICS BY THE ISTS LICENSEE), • DEEMED ISTS AS APPROVED BY CERC. • ISTS SCHEMES IDENTIFIED IN CONSULTATION WITH THE STAKEHOLDERS, BY CTU AND CEA • ISTS SCHEME TO BE IMPLEMENTED BY CTU • ISTS SCHEME IDENTIFIED BY THE EMPOWERED COMMITTEE FOR IPTC THROUGH COMPETITIVE BIDDING

6. ISTS LICENSEE’S OBLIGATIONS IN DEVELOPMENT OF THE ISTS SCHEME • CONTRACT PERFORMANCE GUARANTEE • CONCERNED ISTS LICENSEE WITHIN THIRTY (30) DAYS FROM THE DATE OF ISSUE OF LOI SHALL SUBMIT TO THE CTU THE CONTRACT PERFORMANCE GUARANTEE • (@ . 6 LAKHS PER KM FOR THE TOTAL TRANSMISSION LINE LENGTH (INCLUDING ALL 765 KV, 400 KV AND OTHER LINES IRRESPECTIVE OF CONDUCTORS PER PHASE, SUBSTATIONS, SWITCHING STATIONS, TRANSFORMERS ETC.) OF THE ISTS SCHEME) • VALID FOR A PERIOD UP TO THREE (3) MONTHS AFTER THE SCHEDULED DOCO

7. ISTS LICENSEE’S OBLIGATIONS IN DEVELOPMENT OF THE ISTS SCHEME (CONTD.) • ISTS LICENCEE SHALL BE FINANCING, CONSTRUCTING, OWNING AND COMMISSIONING EACH OF THE ELEMENT OF THE ISTS SCHEME IN ACCORDANCE WITH: • GRID CODE • CEA (TECHNICAL STANDARDS FOR CONSTRUCTION, OPERATION AND MAINTENANCE OF ELECTRICAL PLANTS AND ELECTRIC LINES) REGULATION, 2008 • CEA (SAFETY REQUIREMENTS FOR CONSTRUCTION, OPERATION AND MAINTENANCE OF TRANSMISSION LINES) REGULATION, 2008

8. ISTS LICENSEE’S OBLIGATIONS IN DEVELOPMENT OF THE ISTS SCHEME • CEA (GRID STANDARDS FOR OPERATION AND MAINTENANCE OF TRANSMISSION LINES) REGULATION, 2006 • CEA (SAFETY AND ELECTRICITY SUPPLY) REGULATION, 2008 • PRUDENT UTILITY PRACTICES AND THE LAW • TO PROVIDE CEA WITH A COPY TO CTU, ON A QUARTERLY BASIS, PROGRESS REPORTS WITH REGARDS TO THE ISTS SCHEME AND ITS EXECUTION (IN ACCORDANCE WITH AGREED FORM) TO ENABLE THE CEA/CTU TO MONITOR AND CO-ORDINATE THE DEVELOPMENT OF THE ISTS SCHEME MATCHING WITH THE INTERCONNECTION FACILITIES.

9. DICS’ OBLIGATIONS IN IMPLEMENTATION OF THE NEW ISTS SCHEMES: • SUBJECT TO THE TERMS AND CONDITIONS OF THIS AGREEMENT, THE CONCERNED DICS, AT THEIR OWN COSTS AND EXPENSE UNDERTAKE TO BE RESPONSIBLE • FOR ASSISTING THE CONCERNED ISTS LICENSEE IN OBTAINING THE CONSENTS, CLEARANCES AND PERMITS AND ANY OTHER ASSISTANCE AS MAY BE REQUESTED • FOR ARRANGING AND MAKING AVAILABLE THE INTERCONNECTION FACILITIES TO ENABLE THE ISTS LICENSEE TO CONNECT THE ISTS SCHEME; • FOR COMPLYING WITH ALL THEIR OBLIGATIONS UNDER THIS AGREEMENT, AND • FOR PROVIDING ALL ASSISTANCE TO THE ARBITRATORS AS THEY MAY REQUIRE FOR THE PERFORMANCE OF THEIR DUTIES AND RESPONSIBILITIES.

10. TIME FOR COMMENCEMENT AND COMPLETION: • COMMENCEMENT OF ACTIVITIES SHALL START FROM THE DATE OF SIGNING OF THE SUPPLEMENTARY AGREEMENT • SCHEDULED COD OF THE ISTS SCHEME AS INDICATED IN SUPPLEMENTARY AGREEMENT • IN THE EVENT OF NON-COMMISSIONING OF THE ELEMENT DUE TO FORCE MAJEURE THE SCHEDULED COD SHALL BE EXTENDED ON ‘DAY FOR DAY’ BASIS FOR A MAXIMUM OF 180 DAYS

11. CONSTRUCTION OF NEW ISTS SCHEMES ISTS LICENSEE’S CONSTRUCTION RESPONSIBILITIES: • THE ISTS LICENSEE, AT ITS OWN COST AND EXPENSE, SHALL BE RESPONSIBLE FOR DESIGNING TO COMMISSIONING EACH ELEMENT OF THE ISTS SCHEME BY THE SCHEDULED COD • SHALL FOLLOW ALL APPLIABLE STANDARDS/ REGULATIONS OF CEA FOR CONSTRUCTION, OPERATION AND MAINTENANCE, SAFETY • SHALL NOT BE ENTITLED TO ANY FINANCIAL COMPENSATION UNLESS EXCEPT TO THE EXTENT APPROVED BY THE CERC. • SHALL BE RESPONSIBLE FOR OBTAINING LAND , ALL CONSENTS, CLEARANCES AND PERMITS ,SURVEY, ANY RESETTLEMENT AND REHABILITATION ETC. (CONTD)

12. CONSTRUCTION OF NEW ISTS SCHEMES(contd.) • APPOINTING CONTRACTORS: • QUARTERLY PROGRESS REPORTING: • THE ISTS LICENSEE SHALL PROVIDE TO THE CTU/CEA, ON A QUARTERLY BASIS, PROGRESS REPORTS VETTED BY INDEPENDENT ENGINEER TO ENABLE THE CTU/CEA TO MONITOR AND CO-ORDINATE THE DEVELOPMENT OF THE ISTS SCHEME, MATCHING WITH THE INTERCONNECTION FACILITIES. • SHALL ENSURE QUALITY OF WORKMANSHIP: • SHALL FOLLOW SITE REGULATIONS AND MAKE AVAILABLE COPIES OF CONSTRUCTION /CLEARANCES RELATED DOCUMENTS • SHALL PROVIDE ALL NECESSARY SUPERVISION OF WORK:

13. CONSTRUCTION OF NEW ISTS SCHEMES(contd.) • SHALL TAKE ALL REMEDIAL MEASURES FOR TIMELY PROGRESS IN EXECUTION • SHALL GIVE THE RLDC(S), CTU, THE CONCERNED DICS AND ANY OTHER AGENCIES AS REQUIRED AT LEAST SIXTY (60) DAYS ADVANCE WRITTEN NOTICE OF THE DATE INTENDED FOR CONNECTION AND COMMISSIONING OF NEW ISTS SCHEMES • LIQUIDATED DAMAGES @ 3.33% OF MONTHLY TRANSMISSION CHARGES APPLICABLE FOR THE ELEMENT OF THE ISTS SCHEME FOR DELAY IN ACHIEVING COD AS PER SCHEDULE FOR AND UP TO SIX (6) MONTHS OF DELAY (CONTD)

14. CONSTRUCTION OF NEW ISTS SCHEMES • AFTER THE EXPIRY OF SIX (6) MONTHS FROM ITS SCHEDULED COD, THE PROVISIONS OF EVENT OF DEFAULT AND TERMINATION SHALL APPLY. • CTU ON BEHEST OF INDEPENDENT ENGINEER/CEA, SHALL HAVE THE RIGHT TO ENCASH THE CONTRACT PERFORMANCE GUARANTEE IF THE ISTS LICENSEE FAILS TO ACHIEVE COD OF ANY OF THE ELEMENTS ON THEIR RESPECTIVE SCHEDULED COD • SHALL RETURN OF CONTRACT PERFORMANCE GUARANTEE 3 MONTHS AFTER COMMISSIONING

15. CONNECTION AND COMMISSIONING OF NEW ISTS SCHEMES • THE ISTS LICENSEE SHALL GIVE THE RLDC(S), CTU, THE CONCERNED DICS AND ANY OTHER AGENCIES AS REQUIRED AT LEAST SIXTY (60) DAYS ADVANCE WRITTEN NOTICE OF THE DATE ON WHICH IT INTENDS TO CONNECT AN ELEMENT OF THE ISTS SCHEME, • IF THE ISTS LICENSEE FAILS TO ACHIEVE COD OF ANY ELEMENT OF THE ISTS SCHEME THE ISTS LICENSEE SHALL PAY TO THE CTU, A SUM EQUIVALENT TO 3.33% OF MONTHLY TRANSMISSION CHARGES APPLICABLE FOR THE ELEMENT OF THE ISTS SCHEME Contd.

16. OPERATION AND MAINTENANCE OF THE ISTS • EACH ISTS LICENSEE SHALL PROVIDE ITS ANNUAL OUTAGE PLAN, AND SHALL BE GOVERNED BY THE DECISIONS OF THE REGIONAL POWER COMMITTEE (RPC) IN THIS REGARD • IN THE EVENT OF AN UNSCHEDULED OUTAGE, THE CONCERNED ISTS LICENSEE SHALL INFORM, IN WRITING TO THE CONCERNED RLDC AND THE CONCERNED DIC, THE REASONS AND THE DETAILS OF OCCURRENCE OF SUCH UNSCHEDULED OUTAGE. • CALCULATION OF AVAILABILITY FOR THE ELEMENTS AND FOR THE ISTS SCHEME SHALL BE AS PER CERC REGULATIONS.

17. GRANT OF CONNECTION AND PROVISION OF ACCESS TO THE ISTS • SHALL BE AS PER CERC (GRANT OF CONNECTIVITY, LONG-TERM ACCESS AND MEDIUM-TERM OPEN ACCESS IN INTER-STATE TRANSMISSION AND RELATED MATTERS) REGULATIONS, 2009; AND ANY AMENDMENT MADE THEREOF. • PROVISION OF SHORT TERM OPEN ACCESS SHALL BE GOVERNED BY CERC (OPEN ACCESS IN INTER-STATE TRANSMISSION) REGULATIONS, 2008 AND ANY AMENDMENT MADE THEREOF.

18. CONTRACTED CAPACITY • THE IMPLEMENTING AGENCY SHALL COMPUTE THE POINT OF CONNECTION CHARGES AND LOSS ALLOCATION FACTORS FOR ALL DICS. • EACH DIC SHALL SUBMIT THE GENERATION AND DEMAND DATA AND THE DATA PERTAINING TO THE BASIC NETWORK FOR EACH SEASON OF THE FOLLOWING FINANCIAL YEAR • ISTS LICENSEESHALL SUPPLY THE IMPLEMENTING AGENCY WITH BASIC NETWORK DETAILS, MONTHLY TRANSMISSION CHARGE, AS PER FORMAT APPROVED BY CERC

19. TRANSMISSION CHARGES • PoC CHARGES FOR LONG TERM, MEDIUM TERM AND SHORT TERM ACCESS- NO DIFFERENTIATION • REVISION OF PoC CHARGES • TRANSMISSION LOSSES • METERING AND ACCOUNTING • BILLING, COLLECTION AND DISBURSEMENT OF TRANSMISSION CHARGES • DISBURSEMENT BY CTU TO ISTS LICENSEES

20. TRANSMISSION CHARGES • THE MONTHLY TRANSMISSION CHARGES COMPUTED/ESTIMATED BY THE ISTS LICENSEES/DEEMED LICENSEE SHALL BE AS DETERMINED BY IMPLEMENTING AGENCY FOR APPROVED INJECTION AND APPROVED WITHDRAWAL FOR THE APPLICATION PERIOD. • THE REVENUE ACCRUED FROM APPROVED ADDITIONAL MEDIUM TERM OPEN ACCESS SHALL BE USED FOR TRUING UP THE YTC. • ANY EXPENSES INCURRED BY CTU ON ACCOUNT OF BILLING, COLLECTION AND DISBURSEMENT ON BEHALF OF ISTS LICENSEES SHALL BE REIMBURSED AS PART OF YEARLY TRANSMISSION CHARGE

21. OTHER FEATURES • FORCE MAJEURE • CHANGE IN LAW • EVENTS OF DEFAULTS & TERMINATION • DISPUTE RESOLUTION

22. THANK YOU