Position Organization 1 Falgun Desai Asst Manager Shroff Engg. 2. Kirloskar Bros. Div Manager Sahasrabudhe

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1 Meeting Notes Objective: Pre-bid meeting for Implementation of AgDSM Project in Anand, Gujarat Date: May 17, 2011 List of Attendees: Sr Name of Participant Position Organization 1 Falgun Desai Asst Manager Shroff Engg. 2 Gajanan Kirloskar Bros. Div Manager Sahasrabudhe Ltd 3 Pratik B.M. C R I Pumps 4 Bhavesh Patel MKTG Duke Plasto 5 M.M. KADN mktg Sabar Pumps 6 Manish Surti Jr Eng ERDA 7 Gaurav Kumar P.E BEE, MoP 8 Samved Patil Consultant PWC/BEE 9 Amish Desai DE (Com.) MGVCL 10 Girish Agrawal Associate Professor I R M A Meetings Proceeding: Mr K N Vyas, ACE ( CC) & Mr. Amish Desai, Deputy Engineer (MGVCL), welcomed all the attendee Mr. Gaurav Kumar, Project Engineer (BEE), then informed the attendees about the. Status of AgDSM Project in India. Subsequently, the floor was opened for questions which were answered by officials from PwC, BEE and MGVCL. (List of Questions and their solutions have been given below) Mr. Ghodkhindi, Chief Engineer (MGVCL) then expressed his gratitude towards all the pump manufacturers and requested their support toward the success of this project. Queries raised during Pre Bid Meeting of AgDSM Project at Anand, Gujrat 01. Can we quote the model from the list submitted for approval for star labeling to BEE? The bidders are not supposed to submit a cost break-up but would bid on a lump sum cost. Bidders can replace pumps with higher efficiencies subject to the pumps getting star labeling till the date last pump is replaced. If the pumps do not get star rating till that date (i.e. 3 months since signing the contract), AgIA must take corrective action. 02. The term of the project shall be for a period of 63 months i.e. 5 years from the date of completion of replacement of all the existing pumps with EEPS. If few pumps could not be installed due to practical problems (like non acceptance to

2 install EEPS by farmer), what will be the agreement period for problems beyond AgIA s control? The AgDSM scheme is voluntary for the farmers. If a farmer does not agree even after convincing by AgIA and MGVCL a letter to same effect should be obtained by AgIA from farmer and same is needed to be submitted to MGVCL. Thus in case the pumps are not replaced for problems outside their control, the same should be notified to MGVCL and could be removed from the scope of the project in mutual consensus with MGVCL. 03. Voltage variation accepted as per Indian Electricity Act, 2003? The voltage levels in the project area are within acceptable levels. MGVCL could not be held responsible for pump failure and non performance arising due to change in voltage level. MGVCL however informed that the voltage levels on the project feeders are generally maintained at acceptable levels. 04. Payment of the bidder will be proportionately increased / decreased as per the actual no of Pumps sets audited by the bidder - What does this mean? There is possibility that the number of pumps on the feeders increase/decrease due to change in connection status and other reasons. The payment would be increased /decreased as per the rates mentioned in the appendix to this document. The payment will be made as per actual works carried out. 05. Wide Voltage (should be operating at low voltage) - Specify the Voltage Range. The voltage levels in the project area are within acceptable levels. MGVCL could not be held responsible for pump failure and non performance arising due to change in voltage level. MGVCL however informed that the voltage levels on the project feeders are maintained at acceptable levels. 06. Average annual hours of operation of pump sets 1580 Hours. If actual operating hours are less than 1580 Hrs, what will be the effect on AgIA? If actual operating hours are more than 1580 hours, what will be benefit to AgIA? The performance of the pumps would be evaluated only on the basis of the instantaneous reading. Thus the change in hours of operation would not have any effect on AgIA. 07. MGVCL shall make payments on installation of all the pumps sets by AgIA based on the savings achieved and pumps installed and then yearly for the R&M Why pump payment (Cost of New EEPS) is linked to savings? Pump payment, installation, R&M cost should not be linked to Energy Savings. Please clarify

3 The savings achieved is a measure for the performance of the pump. Thus the payment is linked to energy savings. The R&M cost is not linked to energy savings but the R&M performance i.e. swiftness of providing R&M services. 08. If power supply quality is not good, How AgIA will be compensated and How for Pump failures, non achievement of savings, etc? The voltage levels in the project area are within acceptable levels. MGVCL could not be held responsible for pump failure and non performance arising due to change in voltage level. The AgIA are already sufficiently compensated to provide R&M services 09. MGVCL will furnish rent-free covered space at its sole responsibility, for storage of AgIA partner s material during construction and maintenance thereafter until the tenure of this agreement - Can AgIA store the pumps, spares, other material rent free till the end of the agreement period of 5 years? What about theft / damage to the material? The old pumps are property of MGVCL thus they would be responsible for theft/damage. AgIA can store pumps, spare and other material in the space provided by MGVCL. Even though MGVCL s storage spaces are well guarded MGVCL cannot be held responsible for AgIA s materials. 10. Proposed Changes The bidder may suggest additions or changes to the economic and/or operating terms and conditions presented in the RFP - Will it be considered if proposed changes incur extra cost which will be required to increase the Bid / Tender value, helping to achieve more savings? The maximum cost of the project and the minimum percentage of savings cannot be changed. Any other suggestions are welcomed. 11. Bidders, to whom order is awarded for the year , will be required to deposit security deposit of Rs 1,00,000/- or 10% of total order value awarded to them, whichever is more within seven days of approval of contract. Total order value means Rs 2.57 Cr? Yes, (Pl. See revised R F P document) 12. EMD of the successful bidders will be retained as Security Deposit and will form part of the total security deposit Does this mean that total security deposit amount will be equal to EMD+ Security Deposit? No, if the bidder is successful, the EMD would form a part of security deposit meaning the security deposit would be reduced by an amount equal to EMD.

4 13. Is Bank Guarantee & Security Deposit one & same? Yes 14. Opening of Technical Proposal Shall be opened on ? Last Date of Bid Submission is How Technical Proposal opening date is before Bid Submission date? The Date would be republished in the corrigendum 15. Opening of Financial Proposal Shall be opened on ? Last Date of Bid Submission is How Financial Proposal opening date is before Bid Submission date? The Date would be republished in the corrigendum % of Pumps at 4 feeders are metered, rest are not metered? How the base line energy consumption is measured / finalized though 19% pumps are not metered? The saving would be measured on instantaneous readings pre (old pump readings) and post installation of EEPS. The savings would be calculated purely on the basis of wattage. The pre installation reading would give the required baseline. 17. Are all the pumps have separate transformer and sealed meter for each pump? What about theft of power? The saving would be measured on instantaneous readings pre (old pump readings) and post installation of EEPS. The savings would be calculated purely on the basis of wattage. Thus theft of power should not be a concern for the bidders. 18. Base line energy consumption is considering operating hours of 2279 Hrs whereas Hours of Operation assumed are 1580 Hrs. Why so? The saving would be measured on instantaneous readings pre (old pump readings) and post installation of EEPS. The savings would be calculated purely on the basis of wattage. Thus hours of operation should not be a concern for the bidders. But to clarify the proposed project is a pilot project which is to be replicated throughout the state. The 2279 are the operating hours for the state while 1580 are the operating hours for the four selected feeders. Feasibility has been calculated for both the configuration which can be seen in the implementation report.

5 19. Flexible and Extra ordinary high delivery points PVC pipes are used. This is going to affect the Frictional Head ultimately affecting the efficiency. EEPS. The rest of the system is kept the same. The frictional loss due to inefficient pipes would remain the same for both the old pump and new EEPS. 20. Service wires and fuse protections are not of appropriate size This is going to increase motor burnouts and affect efficiency too and ultimately energy savings. Why AgIA should be held responsible / pay penalty for this? EEPS. The rest of the system is kept the same. AgIA is responsible to repair the new EEPS once they are damaged. AgIA are already sufficiently compensated to provide R&M services. 21. If AgIA do not have star label pump for particular HP, what is the solution? Bidders can replace pumps with higher efficiencies subject to the pumps getting star labeling till the date last pump is replaced. If the pumps do not get star rating till that date (i.e. 3 months since signing the contract), AgIA must take corrective action. 22. Bore well Depths are noted based on farmers inputs. This results into inaccuracy in Head calculation leading to wrong pump selection and energy savings. Selection of proper pump set is a responsibility of the AgIA. It should be noted that the reading noted in the DPR and the implementation report are indicative. The same could have changed due to change in pump set/ repairs carried out, seasonal change. 23. Fraction of power is also consumed by farmers. How to control this and why AgIA should get penalized for not achieving savings because of this? The saving would be measured on instantaneous readings pre (old pump readings) and post installation of EEPS. The savings would be calculated purely on the basis of wattage. Thus usage of power should not be a concern for the bidders, 24. Intermittent power failures are observed frequently. This leads to pump failures as well as less Energy Savings. How AgIA will be compensated for this? The voltage levels in the project area are within acceptable levels. MGVCL could not be held responsible for pump failure and non performance arising due to change in voltage level.

6 25. Most of the pump sets & distribution boxes are provided without earthing. Who will bear this cost? EEPS. The rest of the system is kept the same. 26. Due to No Water or very low water at Suction, Pumps tend to suck silt along with water which affects the efficiency. How & Why AgIA to be held responsible for this? The performance of the pumps would be evaluated only on the basis of the instantaneous reading. Thus reduction in performance due to low water should not be a concern to bidders. 27. Pumps operate at site on Auto mode Due to severe load shedding, farmers have made provision to keep Pumps always ON by defeating interlocks so that whenever power comes, pumps are made ON automatically to pump water during availability of power. The project area gets 8 hours of continuous power for most of the time in year. Thus this situation is not pertinent currently. The performance of the pumps would be evaluated only on the basis of the instantaneous reading. Thus reduction in performance due to auto on mode should not be a concern to bidders. 28. Actual pump HP is more than sanctioned HP. The same should be conveyed to MGVCL official who would take the necessary action. 29. Pumps are merely placed on temporary supports. This affects Pump Performance and life too. EEPS. The rest of the system is kept the same. The performance deficit due to temporary support would remain the same for both the old pump and new EEPS. 30. Fittings provided by most of the farmers are very poor resulting in to losses and leakages. EEPS. The rest of the system is kept the same. The performance deficit due to poor fittings would remain the same for both the old pump and new EEPS. 31. In case of submersible pumps, while dismantling and installation of EEPC, if bore well collapse? Who will be responsible i.e. will bear the cost?

7 AgIA would bear the cost. 32. Prices considered / assumed for certain pump HP s are very low.\ The costs have been estimated based on our interaction with various pump manufacturers and dealers. The cost break-up is attached in as an appendix 33. VT pump prices are equal or even less than equivalent submersible pumps The costs have been estimated based on our interaction with various pump manufacturers and dealers. The cost break-up is attached in as an appendix 34. Data collected by MITCON (about Head, Discharge, Water level, Bore Depth, etc) is not available. This data is must for Pump Selection The same would be provided to bidders. It should be noted that the reading noted in the DPR and the implementation report are indicative. The same could have changed due to change in pump set/ repairs carried out, seasonal change. 35. Pump dismantling and installation charges are very low. The costs have been estimated based on our interaction with various pump manufacturers and dealers. 36. Who will bear the cost of Dismantling & Re-Installation of Pump when installed EEPS Pump fails during 5 year contract period? The cost is the part of R&M charges paid to the AgIA.

8 Appendix: Cost Break of Pump Sets HP Rating Type of Pump No Cost, Rs/ Pump VAT Cost Per Pump Including Vat (Rs.) Total Cost of Energy Efficient Pump Sets (Rs. Lakhs) 5 Mono Block % Submersible % % Mono Block % Submersible % % Mono Block % Submersible % % Mono Block % Submersible % Mono Block Submersible % Mono Block Submersible % Mono Block Submersible % Mono Block Submersible % Mono Block Submersible % Unkown Mono Block Submersible % Total