Ref-CPC/AK/IE-NH130/-- Date: 25th May, 2022

To
The Project Director
National Highways Authority of India
Project Implementation Unit – Vizianagaram
Plot No. 149 & 150, Balaji Nagar, KVR Estates
Gollalapeta Panchayat, Vizianagaram

Subject: Consultancy Services for supervision of Development of Six Lane from Aluru-
Jakkuva (from Km 365+033 to Km 396+800) and from Jakkuva to Korlam
(from Km 396+800 to Km 421+100) Section of NH-130 CD Road under Raipur-
Visakhapatnam Economics Corridor in the state of Andhra Pradesh under
Bharatmala Pariyojana on Hybrid Annuity Mode– 1st Payment Milestone for
Package-2(AP) – Reg.

Ref: 1) Concession Agreement Dated: 14/07/2021

2) Circular No – Covid-19/RoadMap/JS(H)/2020 Dated: 11/04/2022
3) NKC/JK/PLNG/RV/AP-02/2022-23/101 Dated: 25/05/2022

Dear Sir,

The Concessionaire has submitted the Payment Milestone-I (Part-1) on achievement

of 4.29% of Physical Progress up to 18 th May, 2022 against the First Payment Milestone on
achievement of 5% of Physical Progress. The Concessionaire has requested to release the
Payment under Relief for Contractors/Developers of Road Sector in view of COVID19
Pandemic extended the relief measures till 31/10/2022 referred under Sl.No. (2). Accordingly
the Independent Engineer has verified the First Payment Milestone submitted by the
Concessionaire and the comments are as below:

1) The Concessionaire of the project M/s NKC JK EXPRESSWAY PRIVATE LIMITED

has submitted the work done amounting to Rs.23,35,83,000/- towards achievement of
4.29% against 5% of Physical Progress as per weightages of Schedule-G of the
Concession Agreement, as recommended by IE vide letter No. 53 dated: 14 th May,
2022.
2) The Concession Agreement of the project has been signed between Competent
Authority of NHAI and Concessionaire (NKCJKEPL) on 14 th July,2022.
3) The Appointed Date has been declared as 31 st March, 2022.
4) The Independent Engineer (M/s ISAN Corporation in JV with Chaitanya Projects
Consultants Private Limited) has been appointed and commenced their service w.e.f
14th February, 2022.
5) The Weightages of Annexure-I of Schedule-G have been recommended by IE vide
letter No. 53 dated: 14 th May, 2022 and the approval of Contract Price Weightages as
per Annexure-I of Schedule-G by Regional Officer, Vijayawada vide letter No. 1668
Dated: 24th May, 2022.
6) As per Clause 23.1, the cost of construction of the project as on Bid Date is Rs.
681.00 Crore (Rupees Six Hundred Eighty One Crore Only).
7) Further as per Clause 23.4 of Artilce-23, the Payment Milestone for release of
Payment during Construction Period shall be as under:
a) I (first) Payment Milestone – On achievement of 5% of Physical Progress.
b) II (second) Payment Milestone – On achievement of 10% of Physical Progress.
c) III (third) Payment Milestone – On achievement of 20% of Physical Progress.
d) IV (fourth) Payment Milestone – On achievement of 30% of Physical Progress.
e) V (fifth) Payment Milestone – On achievement of 40% of Physical Progress.
f) VI (sixth) Payment Milestone – On achievement of 50% of Physical Progress.
g) VII (seventh) Payment Milestone – On achievement of 60% of Physical Progress.
h) VIII (eighth) Payment Milestone – On achievement of 70% of Physical Progress.
i) IX (nineth) Payment Milestone – On achievement of 80% of Physical Progress.
j) X (tenth Payment Milestone – On achievement of 90% of Physical Progress.
8) Hence the Gross Payable Amount as per Article 23.4 = 4% of 681.00 Cr.
9) As per inspection by IE, the Physical Progress is 4.29% completed up to 18 th May,
2022.
10) As per Clause 23.8 – “The Mobilization Advance shall be deducted by the Authority in
8 (eight) equal installments form each of the payments to be made by Authority to the
Concessionaire in accordance with the provision of Clause 23.4 and the interest
thereon shall be recovered from the 9 th (nineth) and 10th (tenth) installments.
11) On account of COVID-19 pandemic, NHAI vide its Policy Cricular No. 18.46/2020,
dated 22/06/2020 and its amendments vide Policy Guidelines No. 18.47/2020 Dated:
30/06/2020. Further NHAI vide its Policy Circular No. 18.49/2020 Dated: 22/07/2020,
made following amendments in the above stated NHAI Circulars:
“The Cost Escalation using the Price Index Multiple (PIM) should be paid on
achievement of Milestone, considering payment made during interim period, i.e. Price
Escalation is not to be considered for interim payments made before the achievement
of Milestone.
Based on the above Circular, the Prices Adjustment has not been recommended in
this Payment Milestone.
In view of the above, based on approval of Annexure-I of Schedule-G and Article-23 of
Concession Agreement, the submission of Invoice of Payment Milestone-I (Part-1) for 4.29%
against 5% achievement of Physical Progress on site by the Concessionaire. On scrutinizing
the Gross Amount of the Bill is 23,35,83,000/- (Rupees Twenty Three Crore Thirty Five Lakh
Eighty Three Thousand Only) recommend.

This is for your kind information and further action.

Thanking you and assuring our best of services all the time.

For M/S ISAN Corporation in JV with

Chaitanya Projects Consultancy Pvt.Ltd.

G.P. Maddulety
Team Leader
Independent Engineer

Encl: As above

CC: 1) M/s NKCJEPL.

2) H.O. Chaitanya Project Consultant Pvt. Ltd.