M/sAlmondzGlobal Infra-ConsultantLimited

(JV)
M/sManglamAssociates C/o-Mr. InaghiHAchumi, (NearGogoiService
Centre),R/o.Houseno.127,SouthPointColonyEast,Ho
spitalJunction,Nagaland-798620

Letter No. AGICL-MA/CZ/Gen/2022-23/1367 Date: 14.02.2022

To
Dy. General Manager (Projects)
PMU-Pfutsero, NHIDCL
HouseNo7, Menyitseda Ward
Near Pfutsero Glory Peak
Pfutsero Town, Phek
DistrictNagaland-797107
Email:pmu.pfutsero@nhidcl.com

Subject: Construction of Two-Lane with hard shoulder of Chakabama-Zunheboto Road on EPC

Basis from existing Km 100.345 to Km 122.250 (Design Km 95.000 to Km 115.534) (Design
Length 20.534 Km) in the state of Nagaland under SARDP-NE (Package-V:“Para wise comment
on review of declaring Madhucon Projects Limited as Non- Performer “
Reference:- MPL/NL/NCR/2023/008 , Date : 23.01.2023
Dear Sir,
This letter is reply to above cited letter (1) in which subject stated above reviewing for declaring
Madhucon Projects Limited (MPL) as Non- Performer, the Para wise comment is stated below:

Brief of the Project

Sl.No Particulars Details

.
1 Length 20.534Km
2 EPC Contractor M/s Madhucon Projects Ltd
3 Authority Engineer M/s AGICL-MA(JV)
4 Letter of Award 28.03.2018
5 Date of Contract Agreement 11.05.2018
6 Contract Price 188.10Cr( Inclusive of GST)

7 Project Progress(As on13.02.2023) Physical Progress:85.80%

Financial Progress:78.90%

Details of Project Milestone:

Milestones I II III Completi

on
Schedule 18/06/2019 22/06/2020 22/06/2021 19/12/2021

EOT-I 18/06/2019 27/11/2020 16/02/2022 15/08/2022

EOT- - - 25/07/2022 21/01/2023

II(Proposed)
Achieved 18/01/2020 27/11/2020 In Progress -
 M/sAlmondzGlobal Infra-ConsultantLimited
M/sManglamAssociates
Para MPL/NL/NCR/2023/008
dated: 23.01.2023 EPC contractor
2. The subject cited work was awarded to
Madhucon Projects Limited (MPL) vide
LOA dated 23.03.2018 The EPC Contract
Agreement between NHIDCL and EPC
contractor , M/s Madhucon Projects Ac
Limited was entered into on 11.05.2018.
The Appointed date was declared as
20.12.2018. The scheduled date of
completion was 19.12.2021. The contract
Price is Rs.188.10 Cr(including GST) .The
1st Extended Completion Date per
approved EOT-1 was accorded on
15.08.2022 .The 2nd extended Completion
date as recommended in EOT -2 by IE vide
letter dated 15.08.2022 is 21.01.2023 for
Project completion. The physical progress
as on December 2022 is 81.78% and the
Financial progress as on Dec 2022 is 79%.
The Project, however , got delayed due to
various reasons entirely beyond the control
of EPC contractor and mostly attributable
to NHIDCL such as Delay in providing
Right of Way, Delay in Quarrying &
crushing activities by hindrances of Local
students union, Removal of Obstructions,
occurrence of Force Majeure events etc.
(JV)
C/o-Mr. InaghiHAchumi, (NearGogoiService
Centre),R/o.Houseno.127,SouthPointColonyEast,Ho
spitalJunction,Nagaland-798620
Para wise comment by Authority Engineer
All the physical progress, LOA, extended of time (EOT)
mentioned in the letter after perusal found true but the point of
contention is the available of ROW (68% Land available on
the appointed date
Availability of ROW:
As per office order vide letter no :NHIDCL/Nagaland/Civil
Works/CZ (95-115)/2018/793 Dated 22 January 2019,
(copy enclosed) and referring to
DC letter NO.LR/LAND/SARDP/NHIDCL-95/2018-
19/973 Dated 20/11/2018 (copy enclosed) there is 100 %
work front has been available to the EPC Contractor.
Joint memorandum was signed between authorized
representatives of EPC contractors in accordance with clause
8.2. Sh. Alok Kumar Srivastava, Project Manager MPL and
NHIDCL on 29.11.2018 and 30.11. 2018. In this regard it is
clearly mention that joint inventory has been prepared for the
design km 95.000 to 109.000 i.e., length of 14 km excluding
town portion of 6.534 km length and wherever possible, it has
been decided to construct the road only in available width.
Drains to be constructed where feasible.
Removing of standing assets (building and properties
etc.) will be difficult in this stretch, which means that the width
of road is restricted and widening cannot be carried out as
envisaged in the contract. Therefore, the construction width of
road pavement as per clause 5.3 Schedule-B of Contract
Agreement in town portion of 6.534 Km is restricting to
available Width/ROW.
Quarrying & crushing activities :
Quarrying and crushing operations and other approval is the
part of EPC Contractor which is done as per the Schedule-F.
Hindrances of Local students union, Removal of
Obstructions, occurrence of Force Majeure events etc.
Furthermore, Authority and Authority Engineer have also
taken an account for considerations in the EOT – I & II.
 M/sAlmondzGlobal Infra-ConsultantLimited
M/sManglamAssociates
3. The Project has suffered right from day on
due to delay in handing over of land and
subsequent possession. Only 14 Km
(68.18%) land out of 20.534 Km as on
20.12.2018 i.e. the Appointed Date was
given against 18.48 km (90%) of land as
per the provisions of Annexure –II of
Schedule –A of Contract Agreement . Not
only the minimum required contractual
land was not handed over on the
Appointed date, whatever land was handed
over was also fragmented in nature and
that too infested with numerous
Encumbrances and obstructions ,
Hindrances due to locals, unseasonal heavy
rainfall, Landslides. COVID-19 ,
Pandemic, Quarrying and crushing
problems ,etc.
Fu furthermore, we have also taken into an account for
(JV)
C/o-Mr. InaghiHAchumi, (NearGogoiService
Centre),R/o.Houseno.127,SouthPointColonyEast,Ho
spitalJunction,Nagaland-798620
Regarding Land allocation discussed above in Para 2
Incessant Rainfall: Geological condition is not tenable as such
issues is inevitable in (North-East Region) and the same would
have been considered before bidding for the project, keeping in
view to the adverse weather and geological condition the
Project has already been given 03 years to achieve the
milestone. Subsequently, rainfall is considered for EOT.
Protests:
According to the report available with us there was no strike
during C.A.B movement as per the GM Mokokchung vide
letter NHIDCL/BO-MKG/C-Z/PKG-V/2019-20/06 dated
05.03.2020(copy enclosed) denied the work hampered due to
strike (bandh) in North East region and the reasons therein
indicated.
Occurrence of force Majeure event:
The Central Government had also announced certain
relaxations in Schedule-H through letter vide
(COVID19/Roadmap/JS (H)/2020) dated 31 Dec2020 in
terms of extending construction time for road project.
It is to intimated that amidst the on-going turmoil of COVID 19
the Government of Nagaland circulate notice through vide letter
NO.CAB-I/COM/GEN-I/2022
date 10/4/2020 (copy enclosed) in Kohima wherein has issued
the permission for the commencement of all the construction
activities in the state of Nagaland and accordingly all
contractors are advised by the competent Authority to expedited
the progress of work.
considerations in the EOT
 M/sAlmondzGlobal Infra-ConsultantLimited
M/sManglamAssociates
4. Notwithstanding above difficulties faced in
the execution of work at site, MPL was
still able to achieve the 2nd milestone in
time. As regards the 3rd Milestone, we
have already achieved till December 2022
a physical progress of 81.78% and a
financial progress of 79% (and not 72.76%
as mentioned in NHIDCL‘s letter dated
10.01.2023) against the corresponding
target of 80%. MPL are one of the very
few contractors, who have already
successfully complete two Packages in this
area of North East
5. A perusal of the NHIDCL’s letter no 1495
dated 10.01.2023 shows that the approved
EOT-1 Milestones dated have only been
considered for declaring the Madhucon
Projects Limited a Non performer thus
magnifying the problem for reasons not
attributable to the contractor
Actually the work had further been delayed
for reasons not attributable to the
Contractor and accordingly the EOT-II
was recommended by IE vide letter no.
1106 dated 15.10.2022 and NHIDCL’s
Letter no .83 dated 17.10.2022 wherein
the Project Completion is indicated as
21.01.2023 . Thus not considering this
factual position in the NHIDCL letter
no.1495 dated 01.01.2023 has adversely
affected the MPL though considerable
progress has been made at site which has
also been appeared by the IE in their letter
dated 28.12.2022 and GM(P),NHIDCL in
his letter dated 30.12.2022
(JV)
C/o-Mr. InaghiHAchumi, (NearGogoiService
Centre),R/o.Houseno.127,SouthPointColonyEast,Ho
spitalJunction,Nagaland-798620
As per EOT I, Contractor achieved Milestone (MS-I)
after delay of 115 days, Milestone MS -II was achieved on
time, Milestone (MS-III) is still in progress and revised date of
MS-III was falls on 16.02.2022. Even after delay of 359 days
(16.02.2022-07.02.2023) as per the EOT-I, EPC contractor has
not achieved the project milestone-III which is solely
attributable to the EPC contractor. Further, as per the proposed
EOT-II the Project MS-III was falls on 25.07.2022 which was
also not achieved by EPC contractor.
The physical and financial progress achieved by MPL in the
last quarterly months is enclosed in Annexure –A
As on date physical progress (13.02.2023 is 85.80% and
financial progress is 78.90%)
We informed through letter AGICL-MA/CZ/Gen/2022-
23/1241 dated 28/12/2022(copy enclosed), that the work is
going on rapid manner than the previous months so
recommendation for Intention to Termination has been denied.
Also, GM (P) has also recommended same after examine the
progress of work during the month which is found satisfactory.
The delay may be attributable to the partial closedown as per
MPR December 2022 Vide letter AGICL-MA/CZ/Gen /2022-
23/1259 dated 03.01.2023(copy enclosed)
As on date EPC contractor have accelerated the work with well
organized Manpower, Machinery and other resources are
available at site. Paying attention to the present physical
progress the EPC contractor will be able to complete project up
to the end of March 2023.
 M/sAlmondzGlobal Infra-ConsultantLimited
(JV)
M/sManglamAssociates C/o-Mr. InaghiHAchumi, (NearGogoiService
Centre),R/o.Houseno.127,SouthPointColonyEast,Ho
spitalJunction,Nagaland-798620

6. The MoRT&H Circular no. RW/NH- At the outset, we repudiate your claims that Authority Engineer
33044/76/2021-S&R (P&B) dated failed to provide any notice or to follow the procedure for
06.10.2021 provides for a laid down declaring non-performer to the EPC Contractor. Vide letter was
procedure for declaring the EPC contractor issued to the EPC Contractor for Show Cause Notice for declaring
as a Non Performer which has not been non-performer due to slow progress of work . As per reference
letter is given below:
followed. As per Para 5 ( reproduced
AGICL-MA/CZ/Gen/2022-23/1041 , dated 31.08.2022.
hereunder) of this circular before the
Contractor is declared as Non Performer a
15 days’ Notice is required to be given to
the Contractor to furnish its written reply
and to also allow a personal hearing if so
required by the contractor .In the instant
case neither the 15 days’ notice" was given
nor was the Contractor allowed a personal
hearing
“Para 5 Before deciding a contractor
/concessionaire as Non-performer or
debarring /penalizing it, the concerned
authority shall issue a notice to the
Contractor /concessionaire by giving 15
days’ time to furnish its written reply and
allow personal hearing, if so desired by the
contractor/ concessionaire, before the
competent authority or any person
designated for the purpose. Such a notice
shall not be issued without the approval of
an officer below the rank of chief Engineer
/CGM/ED. In case of projects where
public safety is endangered but the
behavior /conduct/action of the
consultant/contractor/concessionaire, the
authority may temporarily suspended the
consultant/contractor/concessionaire, from
participating in ongoing/future bidding up
to 1 month period during which the
regular process of debarment shall be
concluded,”
 M/sAlmondzGlobal Infra-ConsultantLimited
(JV)
M/sManglamAssociates C/o-Mr. InaghiHAchumi, (NearGogoiService
Centre),R/o.Houseno.127,SouthPointColonyEast,Ho
spitalJunction,Nagaland-798620

7. Be that as it may, it may be seen that while All the physical progress, LOA, extended of time (EOT)
the Govt. of India has been taking various mentioned in the letter after perusal found true but the point of
measures to support and promote the contention is the available of ROW (68% Land available on
Infrastructure Construction Industry, the appointed date
NHIDCL has been in a very haste to Ac Availability of ROW:
declare Madhucon Projects Limited a Non As per office order vide letter no :NHIDCL/Nagaland/Civil
Performer by their letter dated 10.01.2023 . Works/CZ (95-115)/2018/793 Dated 22 January 2019,
Rather , NHIDCL has not been able to (copy enclosed) and referring to
provide the land of 90% as per the DC letter NO.LR/LAND/SARDP/NHIDCL-95/2018-
Contract Provisions on the Appointed date 19/973 Dated 20/11/2018 (copy enclosed) there is 100 %
and there were several work front has been available to the EPC Contractor.
hindrance/impediments as cited in the
various correspondence resting on the Joint memorandum was signed between authorized
subject which are still subsisting representatives of EPC contractors in accordance with clause
8.2. Sh. Alok Kumar Srivastava, Project Manager MPL and
NHIDCL on 29.11.2018 and 30.11. 2018. In this regard it is
clearly mention that joint inventory has been prepared for the
design km 95.000 to 109.000 i.e., length of 14 km excluding
town portion of 6.534 km length and wherever possible, it has
been decided to construct the road only in available width.
Drains to be constructed where feasible.
Removing of standing assets (building and properties
etc.) will be difficult in this stretch, which means that the width
of road is restricted and widening cannot be carried out as
envisaged in the contract. Therefore, the construction width of
road pavement as per clause 5.3 Schedule-B of Contract
Agreement in town portion of 6.534 Km is restricting to
available Width/ROW.
Quarrying & crushing activities :
Quarrying and crushing operations and other approval is the
part of EPC Contractor which is done as per the Schedule-F.

Hindrances of Local students union, Removal of

Obstructions, occurrence of Force Majeure events etc.

Furthermore, Authority and Authority Engineer have also taken

an account for considerations in the EOT – I & II

Protests:
According to the report available with us there was no strike
during C.A.B movement as per the GM Mokokchung vide
letter NHIDCL/BO-MKG/C-Z/PKG-V/2019-20/06 dated
05.03.2020(copy enclosed) denied the work hampered due to
strike (bandh) in North East region and the reasons therein
indicated.
 M/sAlmondzGlobal Infra-ConsultantLimited
M/sManglamAssociates
8. MADHUCON is a leading Infrastructure
Construction Company of the Nation.
During the last three decades of its
existence Madhucon has earned a niche for
itself in constructing a wide range of
Projects of varied nature and complexities
on National importance. Madhucon has
established itself as a leader in the Roads
&highway sectors. The above debarment
of NHIDCL from all the tenders of
MoRT&H severely effects the business
activities of Madhucon
9. The MoRT&H Circular dated 06.10.2021
provides for reviewing of the action taken
vide NHIDCL’s letter dated 10.01.2023 by
Secretary, RT&H at Para 7 which reads as
under:
“Para7: The firm/individuals on which
penal /deterrent action is taken may
represent to the “Reviewing Authority
‘against the action /penalty imposed. The
reviewing Authority shall be the Secretary,
RT&H in respect of all NH works and
other centrally sponsored road works
being implemented through State PWDs,
NHAI,NHIDCL and BRO”
10. It is therefore, requested to kindly review
the action of NHIDCL dated 10.01.2023 in
its letter & spirit and revokes the
debarment/non-performer status of MPL at
the earliest.
(JV)
C/o-Mr. InaghiHAchumi, (NearGogoiService
Centre),R/o.Houseno.127,SouthPointColonyEast,Ho
spitalJunction,Nagaland-798620
There is no doubt or any hesitation that Madhucon is eminent
and prestigious company which is leading in Infrastructure
and has been serving to Nation since last 30 years and
executed prestigious projects, National Highways in MoRT&H
, NHAI and NHIDCL in the country.
As per MoRT&H Circular Letter No: RW/NH-
33044/76/2021- S&R (P&B) dated 06/10/2021
reproducing the Para 6 described below:
“The competent Authority for approval of penal action as
above will be the DG(RD),&SS in respect of NH works
being implemented through State PWDs, Chairman, NHAI in
respect of NH works being implemented through NHAI,
MD, NHIDCL in respect of NH works being implemented
through NHIDCL and Director General (Border Roads) for
works entrusted to BRO.”
We have reviewed at the instant quarter EPC Contractor
performance is satisfactory as on date and doing the work in
speedy manner with all resources.
 M/sAlmondzGlobal Infra-ConsultantLimited
(JV)
M/sManglamAssociates C/o-Mr. InaghiHAchumi, (NearGogoiService
Centre),R/o.Houseno.127,SouthPointColonyEast,Ho
spitalJunction,Nagaland-798620

In view instant quarter EPC Contractor performance is satisfactory as on date EPC contractor is
doing the work in speedy manner with all resources. Keeping in view of the present physical
progress the EPC contractor will be able to complete project up to the end of March 2023. In view
of above status, it is recommended to consider the request of EPC Contractor to withdraw as Non
– performer.

All reference letter enclosed in Annexure –B.

Thanking you and assuring of our best services at all times.

With warms regards,

Yours sincerely,

Sanjay Kumar
(Team Leader)
Almondz Global Infra-Consultant Ltd.
(JV)
Manglam Associates.
Chakabama-Zunheboto Road Project.
.

Copy to
1. The MD, Almondz- Manglam Associates(JV)
2. SO Zunheboto
3. Office copy.