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No. SRK/CWRP/A/NH-353E/2022/091 Date:19.09.

2022
To,
The Executive Engineer,
National Highway Division,
Gadchiroli, Maharashtra

Project: Up-gradation of Umred - Bhisi - Chimur - Warora, NH-353E, Package - II, Chimur to
Warora, from Km. 47+700 to Km. 98+350 (Design Chainage) excluding 7.90km Length from
Km. 52+700 to Km. 60+600 to two lane with paved shoulder configuration in the state of
Maharashtra on EPC mode.
Subject: Revised Extension of Time Proposal up to 31.10.2022 (EOT-IV)- Regarding
Ref.:
1. Job No. NH-353E-MAH-2016-17-1068 dated 02-11-2016
2. Agreement Between Chief Engineer, National Highway (P.W.), Navi Mumbai and M/s SRK
Constructions & Projects Pvt Ltd., dated-04-03-2017
3. RO Letter No- RO/MUM/P-1068/EOT, dated- 08-05-2021 (EOT-I approval)
4. Notification of Atmanirbhar Bharat, No. RO/MUM/Gen-Cross/2020-21/210 dated- 08-06-
2020.
5. Relief for Contractor circular No.- Covid-19/RoadMap/JS(H)/2020 dated. - 03-08- 2021.
6. Relief for Contractor circular No.- Covid-19/RoadMap/JS(H)/2020 dated. - 26-08- 2021.
7. Proposal for amendment in article 8.3(iv) No- NH-24028/04/2021-H dated. - 26-08- 2021.
8. E.E. Letter No. 222/EPC/Chi-War/POII/2020 dated. -20-01-2021. (EOT-II approval)
9. Lr. No. 40-3/2020-DM-I(A), Dated 24-03-2020 of Ministry of Home Affairs, Government of
India.
10. Notification No. 40-3/2020-DM-I(A), dated 15-04-2020 of ministry of home affairs, GOI for
allowing certain activities since 20th April 2020.
11. Office memorandum from ministry of finance, Government of India No. 18/4/2020- PPD,
Dated 13-05-2020.
12. Atmanirbhar Bharat No. Covid-19/road map/JS(H)/2020, dated. 03-06-2020. Of Ministry of
Road Transport & Highways (Highway Division).
13. MORT&H, office memorandum No. Covid-19/Roadmap/JS(H)/2020, dated 18-05- 2020.
14. Our letter No. SRKCPPL/2020-033, dated. 03-05-2020, Permission request for
commencing activities and passes for labour.
15. Notification No.- F/18/4/2020-PPD dated 13th May 2020 of Ministry of Finance, GOI.
16. Circular dated 03-06-2020 for PBG and EOT relaxation.
17. No. F.18/4/2020-PPD, Ministry of Finance, Government of India, dated, 19-02-2020
18. GO Rt. No. 121 dated 19-04-2020. Of transport, roads, and buildings (R-II) department of
AP.
19. Our letter No SRKCPPL/2020-065, dated 01.08.2020, letter for release of retention Amount.
20. D.O. letter No. 40-3/2020- DM-I(A) dated. - 22-08-2020 of the Ministry of Home Affairs.
21. Atmnirbhar Bharat No.- Covid-19/roadmap/JS(H)/2020 dated 06-10-2020, Ministry of Road
Transport & Highways (highway Division).
22. Our letter No. SRK/CWRP/A/NH-353E/2020/508 dated 26.12.2020.
23. Ministry of Road Transport & Highways (highway Division) Circular No.-COVID-
19/RoadMaps/JS(H)/2020[e-183777] on dated 08-10-2021.
24. Ministry of Road Transport & Highways (highway Division) Circular No. COVID-1
9/RoadMap/JS(H)/2020 (183767 ) on dated 11.04.2022
25. E.E. Letter No. 1158/EPC/Chi-War/POII/2022 dated. -10-05-2022. (EOT-III approval)

Dear Sir.
The subjected work has been awarded to M/s. SRK Construction & Projects Pvt. Ltd.,
Hyderabad, vide Letter No.D-1/522/2017 dated 04.03.2017 EPC mode. The Contract
Agreement has been signed between M/s. SRK Construction & Projects Pvt. Ltd., Hyderabad
and the Chief Engineer National Highway (P.W.) Navi Mumbai on 14.02.2017 with Contract
price of Rs. 283.51 Cr.
Further upon signing of the Contract Agreement, both the parties were obligated to fulfil certain
set of pre-requisites for further declaration of Appointed Date. Further, the Appointed Date of the
project was declared on 04th March 2017 by the Competent Authority.
The Authority had given time extension up to 30.06.2022 without any liquidated damages Vide
RO's letter ref. 26. Unfortunately, extended period of project completion has been affected badly
by unexpected Corona Virus Pandemic and declared as a Force Majeure Event by the finance
ministry vide their circular ref.17, after that Ministry of Road Transport and Highways (MoRT&H)
decided for extension of relief measures provided in view of 2 nd wave onwards of Covid-19
pandemic vide circular ref.25, 24 & 23, in this recent circular ref. 25 extension of relaxation in
schedule H/G of Contract Agreement extended till 31st October, 2022 to improve the liquidity of
funds available to the Contractors / Concessionaire. Hence, we are here with furnishing our
claim for EOT, eligible as per clause 10.5 under FORCE MAJEURE EVENT DUE TO COVID-
19 is as narrated below:
With regard to extension of time claim, it is submitted that the circumstances arisen for seeking
EOT has continuing effect and shall be considered relevant to Article 10.5 of Contract
Agreement, that says “Without prejudice to any other provision of the Agreement for and in
respect of extension of time, the contractor shall be entitled to extension of time in the project
completion schedule (the "Time Extension") to the extent that completion of project milestone is
delayed due to occurrence of FORCE MAJEURE EVENT due to Covid-19 pandemic.

We are submitting proposal for EOT-IV of subject work for 123 days citing the following
reasons.

I. OCCURRENCE OF FORCE MAJEURE EVENT


II. BAN ON MINING BY NGT
III. DELAY IN PROVIDING ROW
IV. DELAYS IN CLEARING ENCROACHMENTS IN VILLAGE LIMITS
V. DELAY IN SHIFTING OF UTILITIES
VI. DELAY IN HANDING OVER LAND DUE TO LAND ACQUISTION

I. OCCURRENCE OF FORCE MAJEURE EVENT

According to provision of Clause 21.1 Force Majeure or “Force Majeure Event” shall mean
occurrence in India of any or all of Non-Political Event, Indirect Political Event and Political
Event, as defined in clause 21.2,21.3 and 21.4 respectively, if it effects the performance by
the Party claiming benefit of Force Majeure (The “Affected Party”) of its obligations under
this agreement and which act or event (i) is beyond the reasonable control of the Affected
Party, and (ii) the Affected Party could not have prevented or overcome by exercise of the
due diligence and following Good Industry Practice and (iii) has Material Adverse Effect on
the Effected Party.

The Authority had approved EOT-I of 484 days i.e. up to 30.06.2020 (ref.2) in the base of
project length affected by the ECO Sensitive Zone & Social Forest, Delay in Tree Felling,
Utility Shifting (Water Pipe Line & Electrical), Delay in Land Acquisition in realignment
portion and also work stopped due to during Assembly Election.

Authority had approved 2nd EOT from 30.06.2020 to 31.12.2020 (Six Months) due to the first
wave of Covid-19. The EPC contractor was willing to complete the project in extended
period but due to unexpected event of COVID -19 1 st wave, work had been hampered badly,
more than 60% of abours and staff were infected with COVID positive, so most of the
labours and staff of the EPC contractor left the site unexpectedly, Contractor face many
crises like, non-liquidity of funds and staff who left at site owing to scare from the Covid-19
pandemic. In pandemic most of the staff left the site due to restrictions imposed by
Government, despite during that period contractor work with few workers continued and
achieve the progress 7.63% of work amounting of Rs. 21.64 cr. from March’ 2020 to Dec.’
2020.

After that Authority had approved 3rd EOT from 01.01.2021 to 30.06.2022 (Eighteen Months)
due to 2nd Wave of Covid-19 pandemic, started in March 2021. During 2nd Wave of Covid-19,
most of the staff scared and again left the site due to affected by the Covid-19 2 nd wave. In
2nd wave of covid-19, EPC contractor continued the work with few workers and achieves
11.86% progress of work amounting Rs. 33.62 cr. from January 2021 to September’ 2021.

After the 2nd wave pandemic, 3rd wave hit India so drastically as 1st & 2nd wave of Covid-
19, the new cases have increased exponentially since mid of January 2022 to till March
2022. Nearly all states of India are showing an upward trend with a rise in test positivity rate
(TPR). Most the staffs got scared again and started to leave the site. Again, EPC Contractor
was unable to continue the work in a smooth way. However, EPC Contractor have achieved
the 17.5% physical progress of amounting Rs. 49.31 Cr. from October 2021 to August’ 2022.

Despite COVID-19 pandemic, the EPC contractor has achieved about 36.7% of work
particularly from COVID-19 1st wave to till date.

Now the EPC contractor is about to achieve the last Milestone-IV (100% of work), therefore it
is request to consider extension of time.

II. BAN ON MINING BY NGT


National Green Tribunal has imposed ban on mining since 31.01.2022. Due to this it
has been very difficult to procure murum at site result in work hampered of embankment &
subgrade.

III. DELAY IN PROVIDING ROW

It is to state that we have not provided with encumbrance free land for a length of 5.368
Km (12.56%) against 42.75 Km even today which includes 2.355 Km on account of Electrical
utilities, 0.547 Km due to water pipe line shifting 0.754 Km due to encroachments and 1.730
Km due to land acquisition etc., in addition to the land required Toll Plaza.
III. DELAYS IN CLEARING ENCROACHMENTS IN VILLAGE LIMITS

The EPC Contractor Claims that encroachment in village limits is still yet to be removed in
a length of 0.709 Km. hence neither, we could not be taken up drains nor road work in such
village limits.

IV. DELAY IN SHIFTING OF UTILITIES

The EPC Contractor Claims that utility shifting works have not been entrusted to the EPC
Contactor and hindering in about 0.754 Km by water pipe lines, 2.355 Km by electrical
utilities.

V. DELAY IN HANDING OVER LAND DUE TO LAND ACQUISTION

The effect of 2nd wave onwards of Covid-19:-


After the abatement of Covid-19 1st wave spread in the country, the 2nd wave began from March-
2021 onwards in various state of the country. The 2nd wave of pandemic has rapidly spread in
the country and further affected the project construction activities due to sudden spike of
pandemic again due to which several restriction like lockdown and curfew were imposed by the
Government of India / State Government of Maharashtra. It is well known fact that EPC
Contractor suffered lot and project work progress was hampered severely due to 2nd and 3rd
wave of Covid-19.
To mitigate the effect of Covid-19 2nd wave and 3rd Wave onwards, the Competent Authority in
the ministry of Road Transport & Highways has issued the relief measures time to time vide
letter ref. 25, 24 & 23

The approved EOT is under force up to 30th June 2022, pandemic Covid-19 effected the entire
world and declared as Force Majeure Even by the union government of India vide circular
ref.17. Our entitlement for EOT under Article 10.5 for completion of the balance works is also
due to the Force Majeure Event arisen by the COVID-19 pandemic, affected the public life
throughout world and the project location and is narrated hereunder:
OCCURRENCE OF FORCE MAJEURE EVENT- ARTICLE 10.5.1 (C)
The EOT for the project was sanctioned vide letter cited # 26 3 & 8 up to 30th June 2022 due to
the various reasons attributable to the local authorities without liquidated damages. While the
project time schedule phase is passing through extended EOT period, an obsolete Covid-19
pandemic disrupted the entire world and including the project locations and badly affected the
public life. All governments have been forced to enforce full lockdown extended from time to
time and shut down all activities and came forward with lot of measures protecting the public
from Corona virus.
Hence, COVID-19 pandemic effected the project progress very badly and irreparable loss of
time and finance as detailed below due to which union government has taken up heavy
mitigation measures under Atma Nirbharan Bharat to support the infra industry and services in
the country in addition to providing all health care facilities and supply of food grains etc., to the
needy.
1. In view of the pandemic of Coronavirus 2nd wave (Covid-19), the Honorable Prime
Minister of India has requested the entire public to observe nationwide Janata Curfew on March
2021 and declared a complete country-wide lockdown from March 2021, in-order to contain
spread of the naval 2nd wave of Corona-19 and further extended up to 15th June 2021. Due to
1st and 2nd wave of COVID-19 we faced many financial crises, non-liquidity of finance and work
and due to scared from the COVID-19 virus, all the staff left the site except few security
personal and maintenance staff mandatory for the upkeep of the project in the public interest.
Due to lack of Staff and finance we unable to continued smooth work and after the 2nd wave of
covid, Monsoon had started, that too badly effected the work. From 2nd wave of Covid to till
date, we are not doing any work on smooth way. Vide letter ref.25, 24 & 23, in this circular
extension of relaxation in schedule H/G with effective till 31st March, 2023 to improve the
liquidity of funds available with the Contractors and Concessionaire. Now we stand on proper
staff and liquidity of fund to complete the work on or before March'2023.

2. After the 2nd wave pandemic, 3rd wave hit India so drastically as 1st & 2nd wave of Covid-
19, the new cases have increased exponentially since mid of January 2022 to till March 2022.
Nearly all states of India are showing an upward trend with a rise in test positivity rate (TPR).
Most the staffs got scared again and started to leave the site. Again, we are unable to continue
our work in a smooth way, our work progress hampered very badly due to this 3rd wave of
Covid-19.

3. As such all logistics and procurement of materials and movement of manpower effected
badly and constrained us from conducting the construction activities at site duly losing the
valuable project period.

It is submitted that the entire project work has been affected by Corona pandemic very badly
caused an overrun-on time completion as per EPC agreement and EOT Approved vide letter
ref. 26, 3 & 8. Even though we have made sufficient efforts to mitigate such over run, the
enormity of Corona pandemic and full lockdown imposed by the Government of India throughout
the country by closing the movement of public and all other activities since March 2021 and
further extended from time to time and continuing till March 2022 with certain relaxations. Hence
under the circumstances due to lock down imposed by the Government of India, the entire
project work has been disturbed from March 2021 to till March 2022 and all the employees left
the site except few security personnel scared from the Corona pandemic.

The imposition of lockdown by Government of India due to pandemic Corona, is neither in the
control of the Authority or the Contractor due to public safety and is NATURAL CALAMITY and
is purely a NON-POLITICAL EVENT as per clause 21.2 of the Agreement. Hence, the
Government of India pleased to declare the period of lockdown as "FORCEMAJURE" vide
Office Memorandum ref.17 issued by the Ministry of Finance, Government of India.

This COVID-19 pandemic has become a hard nut and we are facing huge challenges in
mobilizing man power and supply chains associated with transportation of goods. The entire
manpower in project is from northern states like Bihar, UP, Madhya Pradesh, Maharashtra etc
and the lock down extended in Maharashtra, Orissa, Madhya Pradesh also. Entire public
transport disrupted and Sramika trains were introduced by the ministry of Railways for
transporting labour stranded at site, since 1st May 2020 and about 200 special trains were
introduced w.e.f. With great difficulty, the labour have been convinced and mobilized by trains
and also engaging exclusive vehicles from northern states in the interest of the project duly
taking utmost care and safety measures against health hazards and still the challenges are
continuing due to increasing Covid-19 pandemic throughout the country.

Until June 2021 Chandrapur district in Maharashtra is in Red Zone where the project work is
situated and with restricted supply chains. The critical materials like concrete admixture, curing
compound, sealant, jointing material have to be procured from Vadodara, Gujarat, steel from
Raipur and the supply chain badly affected for continuing the project activities until now. Still
Gujarat, Maharashtra, Orissa, Bihar etc., are in lockdown position with lot of restrictions on
movement due to high rate of infections of Corona virus.
As directed by the government of India, we have put forth all efforts in mobilizing the labour
force from northern states by engaging special exclusive vehicles and commenced the
activities. Despite our diligent efforts, about 25 persons of Covid-19 infection noticed and sent
for quarantine for 14 days and lost entire working period of June 21 due to scarcity from the
covid-19 pandemic thus imposing huge penalty on the contractor. In addition, all new joined
have been keep under quarantine for 14 days.
After due consideration of the COVID-19 pandemic throughout the world and in the country by
the Government of India, the union government pleased to allow invocation of
FORCEMAJUERE event vide letter ref.17 and Office Memorandum ref.6 above duly allowing
the concerned authority to release Retention Money (Part of Performance). These Atma
Nirbharan Bharat concessions were further relaxed by allowing concerned to sanction EOT
under Force Majeure Event for further till 31st March, 2023 vide circular ref.25, 24 & 23 above.
According to provision of Clause 21.1 Force Majeure or "Force Majeure Event" shall mean
occurrence in India of any or all of Non-Political Event, Indirect Political Event and Political
Event, as defined in clause 21.2.21.3 and 21.4 respectively, if it effects the performance by the
Party claiming benefit of Force Majeure (The "Affected Party") of its obligations under this
agreement and which act or event (i) is beyond the reasonable control of the Affected Party, and
(ii) the Affected Party could not have prevented or overcome by exercise of the due diligence
and following Good Industry Practice and (iii) has Material Adverse Effect on the Effected Party.
In view of the above facts and documentations, the Ministry has already permitted to Invoke
FORCE MAJEURE EVENT vide Memorandum cited ref.17 and circular cited ref. 25, 24 & 23
above and the following claims have been made:
1. Retention Money has been claimed vide letter cited ref.25 as per bullet (iii) of circular
cited ref.25 above and recommended to be released after due consideration of our claim for
Invocation of Force Majeure Event by the Authority, eligible as per eligibility vide circular ref.4
cited under Atma Nirbharan Bharat.

2. "Relaxation of Schedule H to provide monthly payment to the contractor for the work
done and accepted as per specification of the contract during the month under EPC/HAM
Contract" vide bullet (iii) of letter cited ref.25 above to be followed in the forthcoming Invoices.
As Force Majeure Event has been invoked by the contractor and accepted by the Authority also
and request your good self to approve the EXTENTION OF TIME.
Hence, we request your good self to sanction EOT for 4 Months up to 31st October 2022 as
per our eligibility and as explained above and communicate the same at the earliest duly
revising the Mile Stones.

Revised Schedule Proposed Date of


Sl No. Description
Date of Completion Completion

1 Project Milestone-I (10%) 26.03.2018 26.03.2018

2 Project Milestone-II (30%) 30.04.2019 30.04.2019

3 Project Milestone-III (70%) 24.01.2022 24.01.2022


4 Project Milestone-IV (100%) 30.06.2022 31.10.2022

From the above illustration, by considering the provisions of the Contract Agreement and
Relaxation measures issued by MORTH vide its Office Memorandum, the EPC Contractor
hereby requests you to extend the Project Milestone-IV (Schedule Completion) up to 31st
October i.e. for a period of 123 days as warranted above.
This is without prejudice to our rights and contentions. Your kind cooperation is highly solicited.
Thanking you and always assuring you of our best services.
For SRK Construction & Projects Pvt. Ltd.

Authorized Signatory

Copy to :
1. The Chief Engineer, National Highway (P.W.), Konkan Bhawan, Navi Mumbai
2. The Regional Officer Maharashtra 5th floor, Konkan Bhawan CBD Belapur
3. The Superintending Engineer, National Highway Circle, Nagpur
4. Assistant Engineer Gr I, national Highway Subdivision, Chandrapur

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