Ref: RPT/HVDC/TCR/F-204/2020/ Date: 17.07.

2020

Sub: +/- 320 kV, 2000 MW Voltage Source Converter (VSC) based HVDC Terminals and DC
XLPE Cable System between Pugalur and North Thrissur – Compensation to BSNL for
damage caused to optical cable during HVDC cable duct construction works by M/s
Sumitomo electric Industries Ltd. under On Shore Services Contract Agreement-II
(LOA no. CC-CS/698-SR2/HVDC-3249/7/G10/R/CA-VI/7218 dated 18.04.2017)
1. The cable ducting works for 320 kV HVDC cable link between Transition station at
Vadakkencherry and HVDC station at Thrissur, are in completion stage. The cable ducting is
done in the utility corridor of NH-544 where various communication cables, pipeline etc. laid by
other utilities are existing. As on date, cable ducting works have been completed and HVDC
cable laying has been done for 24.62 km.

2. During the cable ducting works by M/s Sumitomo, for laying of HVDC cable, the communication
cables laid by BSNL have been damaged at various occasions and the same was time to time
intimated to M/s Sumitomo. Subsequently, vide letters nos. DE OFI/PGC/2019-20/5 dated
31.12.2019 & DE OFM/t-12/24F/2018-19/14 dated 31.12.2019 (Annexure-I), addressed to M/s
Sumitomo, BSNL had claimed amounts of Rs.49,71,641.00 and Rs.48,36,600.00 towards
compensations for damages to OF Installation unit and OF maintenance unit respectively. The
above compensations were for the damages occurred during the period from 10.11.2018 to
14.12.2019 and the total claim was amounting to Rs. 98,08,241.00.

3. On our request for further clarification, BSNL submitted the revised claim vide letter dated
26.02.2020 and the details were furnished (Annexure-II), briefly as given below:
4.
Sl Items Amount
no
1 New laying process of inter district OFC for 9.2 km cable 49,71,641.00
length
2 Compensation charge for huge revenue loss and reconstruction 42,95,600.00
of cable under O&M
Total 92,67,241.00
5.

For calculating the compensation cited under Sl no.1, BSNL considered the reference as last
year’s OFC works estimate and for calculating compensation under Sl no. 2, the
compensation/restoration amount Rs 1,50,000.00 per incident of damage was taken as fixed by
BSNL corporate office based on joint agreement with all telecom operators PWD, NHAI, local
bodies and other public utilities in connection with settlement of dispute in Supreme Court.
4. M/s Sumitomo was reluctant to accept the claim initially indicating that the ROW was in scope of
POWERGRID. Vide various letters (Annexure-III) to Sumitomo, we have clarified that the
damages are on their account and to be compensated by them in line with the following points of
TS:
(a) As per the TS clauses 1 and 1.1
Quote
 The existing pipeline/power/communication cable of the other utilities in the corridor HVDC
cable shall preferably laid below the existing installation. During laying the contractor shall be
responsible for protecting existing installations by taking suitable protective measures.
Prior to any excavation or underground cable trenching, contractor shall notify all municipal
utilities as per Employers direction. Provide details of work in street, if required by local
authorities.
Unquote
(b) As per Annexure 3 Cable point no.11 “the existing underground services are to be identified by
the bidder as a part of detailed route survey.

6. Further, a number reminder letters were sent to M/s SEI Ltd. for settlement of the BSNL claim
for damages stating that the responsibility of protection of all underground structures, cable etc ,
during cable ducting, was with M/s SEI and since this TS requirement could not be fulfilled by
them the damages occurred. As per SEI, they can not be held fully responsible for the damages
since encumbrance free ROW was not available, as envisaged in the contract. However SEI
didn’t deny the BSNL claim and wanted to settle the claim through the insurer under Erection
All risk Policy. It is observed that the insurer is repeatedly asking clarifications which require
many more inputs from BSNL (Annexure-IV) which require frequent intervention by us and it
will take a long time to conclude.

7. It has been informed by senior BSNL officials that the performance of their communication link
between Pattikkad and Vaniyampara has become very poor due to large number of damages
happened to their communication cables during cable ducting. The claim was made by BSNL in
Dec’19 and replacement of the damaged cable has been pending due to nonpayment of claim by
SEI. Any further delay in paying the compensation to BSNL may adversely affect the relation
with them which may even delay the issuance of PTCC clearance.

An amount of Rs.93 lacs has been withheld from the RA bill no. of Services Contract of HVDC
cable due to non settlement of the BSNL claim by M/s SEI Ltd. It is proposed to pay the
compensation amount of Rs. 92,67,241.00 to BSNL and settle the claim by them as the settlement by
M/s SEI will take long delay.

As per DOP clause of Section-I of DOP is competent to approve the payment of

(Ajay K. Mathew)
8. anf the Any further It is observed that a number But the settlement through the insurer may
take considerable time

9. M/s due to nonfulfillment including , BSNL There were number of reThrough various letters

10. Vide letter dated 05/03/20, Divisional Engineer (OF Instl & Mtce) had intimated regarding the
damages caused to their two numbers of 24F optical fibre cable from Mannuthy to Vaniampara
which were commissioned on July 2017. Out of the two, one used for Inter district traffic and the
other for intra district traffic and the cables are generally laid with varying depths of 120 cm to
165 cm based on their construction practices. It is to be mentioned that the depth of HVDC duct
is 2.5m estimated the damages caused to the above two cables due to HVDC cable duct civil
works as foll Out of the two, one used for Inter district traffic and the other for intra district
traffic. The cable is generally laid with varying depths of 120 cm to 165 cm based on their
construction practices ows:

Sl no Item Amount
1 New laying process of inter district OFC for 9.2 km 49,71,641.00
cable length
2 Compensation charge for huge revenue loss and 42,95,600.00
reconstruction of cable
Total 92,67,241.00

For calculating the compensation cited in Sl no.1, BSNL considered and take a reference as last year
OFC works estimate and for calculating compensation in Sl no. 2, the compensation/restoration
amount Rs 1,50,000.00 per incident of damage has fixed by BSNL corporate office based on joint
agreement with all telecom operators PWD, NHAI, local bodies and other public utilities in
connection with settlement of dispute in Supreme Court.
11. POWERGRID had given numerous communication to M/s Sumitomo to ensure adequate
supervision during excavation for cable duct construction. Further as per the TS clauses 1 and
1.1
Quote
The existing pipeline/power/communication cable of the other utilities in the corridor HVDC cable
shall preferably laid below the existing installation. During laying the contractor shall be responsible
for protecting existing installations by taking suitable protective measures.
Prior to any excavation or underground cable trenching, contractor shall notify all municipal utilities
as per Employers direction. Provide details of work in street, if required by local authorities.
Unquote
Also as per Annexure 3 Cable point no.11 “the existing underground services are to be identified by
the bidder as a part of detailed route survey.
12. In the RA bill dated 12/06/2020, POWERGRID had already kept on hold Rs 93,00,000.00
towards damages caused to BSNL fibre optic cable.Further vide letter dated 01.07.20
POWERGRID clarified that the compensation claimed by BSNL shall be settled by M/s SEI at
the earlies failing which it will be settled by POWERGRIDfrom the amoun already withheld
from the bills for the purpose and necessary overhead charges also will be deducted.

Hence it is proposed to approve payment for an amount of 1,06,57,327.00 including overhead

(Ajay K. Mathew)

With NHAI permission BSNL had laid through the NHAI assigned alignment.. The HVDC cable
duct excavation is done for 2.5 m and alignment coincided with BSNL cable in many
stretches.Manager, Thrissur