INTER-OFFICE MEMO AUG 2021

AGREEMENT ON RESPONSIBILITIES & ACCOUNTING-

TECHNICAL FIELD ASSITANCE (TFA) - CHITRADURGA ORCHID
PROJECT
Introduction
1. In order to obtain optimal tax benefits, for SGRE as a whole, as proposed by fiscal team,
certain activities, hitherto part of Turbine Supply Agreement (TSA) of ON have been carved out and
are being included as part of the O&M contract. These activities are performed by ON Projects
except that of the pre-commissioning and commissioning activities which are traditionally being
performed by SE.
Scope of TFA
2. The following activities will form part of the Schedule of the O&M contract as agreed for this
contract between On and SE in India: -

Sl No Activity BU Responsible
a. Erection support Manpower ON
b. Indirect Labours ON
c. HSE Support ON
d. Security ON
e. EAR Insurance ON
f. Pre-commissioning SE
g. Grid Commissioning SE
Table 1. Activity Matrix
Responsibilities
3. The respective BU as indicated above at Table 1 shall be responsible for the following for its
activity: -
(a) Coordination with Orchid for planning, scheduling and execution of respective activity
as per agreed timelines.
(b) Performance of the Scope of work for each of the above activities as per terms and
conditions agreed between SGRE and Orchid vide clause 3 of the O&M contract.
(c) The resource requirements (manhours/ material etc.) for performing the above
activities arrived at by the respective BUs shall be of the respective BU.
(d) Monitor and control of costs for respective activity as per budgeted cost.
(e) Documentation/ standards required for performing the activity.
(f) Maintenance of applicable logs/ records of activity.
(g) Safe-keeping, maintenance and calibration of tools/ test equipment for conduct of
activity.
(h) The deliverables as defined in clause 3 of the O&M contract for each of above
activities.
(i) Attending all progress review / associated meetings for respective activity.
(j) Provisioning of PPE and adherence to HSE practices during conduct of activity.
(k) Submission of reports as applicable to Orchid as per agreed timelines.
(l) Making good any shortfall to meet the deliverables as per clause 3 in the O&M
contract.
 (m) Obtaining clearances from Orchid or any other relevant stakeholder required for
performing the activity.
(n) Coordination of boarding, lodging and transportation of personnel associated with
activity.
(o) Issuance of PO and maintenance & submission of supporting bills/documents for
accounting.
(p) Execute the activity as per SGRE Business Conduct Guidelines.
Accounting
4. Based on the costing provided by ON and SE the overall costing and the subsequent price
including GST @ 18 % agreed with Orchid is as follows: -

Sl No
Activity Cost in Rs Price in Rs
a.
Erection support Manpower 955,000 13,25,765
b.
Indirect & HSE Manpower
c.
Security
d.
Other Erection Charges 176,283 244,722
e.
Pre-commissioning 276,000 383,153
f.
Grid Commissioning
Table 2. Cost & Price details
5. The invoicing shall be carried out by SE on Orchid for the activities completed on monthly
basis. The invoicing shall be on pro-rata basis.
6. For the expenditure incurred for the particular month, ON shall be reimbursed by SE during
the subsequent month. The amount reimbursed shall be as per the individual activity cost. The
accounting of the same shall be carried out by respective BU.
Liabilities
7. Any penalties/ LD (s) on account of services as per Table 1, rendered by respective BU,
shall be settled by the concerned BU. PCVT penalties, if any, shall be settled by ON.
Dispute Resolution
8. Disputes, if any, involving SGRE and Orchid shall be resolved as per agreed contract terms.
Any internal issue (s) between the BUs shall be resolved at the BU CEO’s level.

Digitally signed by Neelam Shah

DN: cn=Neelam Shah, c=IN,
o=Siemens Gamesa India,

sai Digitally signed by

ou=Finance,
email=neelam.shah@siemens.com
Date: 2021.09.09 12:08:51 +05'30'
sai krishna B

krishna B Date: 2021.09.08

19:31:49 +05'30'
(Neelam Shah) (V Arulselvan) (B Sai Krishna)
CPM, ON, ON Functional Controlling SE Counsel Commercial Law

BALAKRISHNAN Digitally signed by

BALAKRISHNAN
GOVINDARAJAP GOVINDARAJAPURAM RAMAN
Date: 2021.09.08 18:45:49
URAM RAMAN +05'30'

(Mayank Lingwal) (G R Balakrishnan) (Ashish Sethi)

Head (Sales) ON Head (Service Sales & Strategy) Head Projects