FORM ‘K’

DRAFT AGREEMENT FOR SUPPLY OF WATER FOR THE PURPOSE OF

This agreement is made on the… .………… day of two thousand ….… Between
Sri P.S. Sinha son of Late Sri Tribeni Prasad Resident of village QTR No. D/12, Dera
Colony, PO: Dera Dist : Angul- 759103 by profession the authorized representative of
Mahanadi Coalfields Limited, Talcher Colliery (Hereinafter called the “Applicant”) of the first
part AND (1) Sri J Pattnayak son of Sri Dharmananda Pattnayak Resident of village Dera
Colony, QTR No. C/8 Dist: Angul, Colliery Manager (Mining), Talcher Colliery by profession
and (2) Sri Ajay Kumar Samal son of Sri Sikdar Samal Resident of village Chalgarh, PO:
Ghantapada Dist: Angul, Safety Officer (Mining), Talcher Colliery by profession (hereinafter
referred to as the “Sureties”) of the second part;
And
the Governor of Odisha represented by Sri Sashi Bhusan Mishra, S/O Late SRI Hari Hara
Mishra, Village- …………………, P.O- ………………., District- Puri Executive Engineer, Angul
Irrigation Division, Angul which expression unless repugnant to the context shall include his
successors and assigns (hereinafter call “The Government”) of the “Third part”.
Whereas, the applicant has made an application for supply of water from
Government water source / Irrigation works for the period as mentioned in the Schedule;
here to annexed
And whereas, the sureties have agreed to stand surety for payment of rates charged
for such supply in the manner hereinafter appearing and the Government has agreed to
supply water for the purpose specified in the schedule annexed hereto –
SCHEDULE

Purpose for which Volume of water, if Period of supply The place at which it
water will be any will be supplied
supplied
1 2 3 4
0.4712 Three Years Colony, mine water
Domestic & supply
industrial

Now this agreement witnessth as follows:

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 a) M/S Mahanadi Coal Fields ( Talcher Colliery ) Limited shall pay Rs.
…………………………… at the rate of Rs…………………………. per ………..
on or before …………………. To …………………………………..
b) M/S Mahanadi Coal Fields ( Talcher Colliery ) Limited shall make suitable
arrangement to take the water from the Government water source / Irrigation
works at which it will be supplied.
c) M/S Mahanadi Coal Fields ( Talcher Colliery ) Limited shall not use the water
supplied to him for any purpose other than that which is specified in the said
Schedule.
2. If the sum aforesaid or any part thereof, is not paid on or before the date specified in
this agreement it shall become payable at once (unless the Government sanctions for
special reason as extension of time) and the applicant and sureties shall be liable jointly and
severally to pay the same with compound interest at the rate of two percent per mensem
from the date of default. All amount due to the Government under the terms of these
presents shall if not paid in time, be recoverable as a public demand under the Orissa Public
Demands Recovery Act, 1962.
3. (i) M/S Mahanadi Coal Fields ( Talcher Colliery ) Limited shall be liable for
criminal and civil action if by drawal
of water, the rights of any third party are affected and shall indemnify the
Government against all claims for damage preferred by person or persons
affected by the permission granted.
(ii) M/S Mahanadi Coal Fields ( Talcher Colliery ) Limited shall not without prior
permission in writing from the Government lay pipe line on Government or
communal lands If the pipe lines have to pass through Government lands
permission of the Government for this shall be taken separately which may be
granted subject to the protection of rights of Government or community, as the
case may be.

(iii) The applicant shall not draw or lift water more than the quantity mentioned in
the requisition or order and not exceeding the volume mentioned in the
Schedule except with the prior approval of the Government. The Executive
Engineer shall assess the fees to be charged as per unit / quantity of water
drawn or allocated whichever is higher. If drawal is more than the allocation, a
penal rate at six times the rate specified in Schedule II and III shall be
charged on the quantity of excess drawal, in addition to the normal bill on
allocated quantity. The excess drawal is permissible for a maximum period of
six months, within which the licensee shall have to apply for a higher
allocation of water with reasons and where the licensee fails to so apply for
such higher allocation or where the licensee is refused for such higher

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 allocation, the agreement shall be liable to cancellation and the water
supplied shall be stopped thereafter.
(iv) The permission granted shall not be deemed to exempt the applicant from
liability to payment of water charges lawfully assessable at the rate as may be
prescribed by Government from time to time.
(v) Government reserves the right to suspend or cancel the permission in case of
violation of any of the covenants.
4. The applicant at his own cost shall install a Flow Meter or a suitable measuring
device for measurement of water drawn or lifted by him from the Government water source /
Irrigation works as per the procedure laid down in rule 23-A (b). The Executive Engineer
shall visit the location of drawal or lifting of water, verify the quantities or water drawn or lifted
by the applicant and, ensure such control as may be necessary for administering the drawal
or lifting of water. Assessment of water rate shall be made as per the quantity of water drawn
or allocated whichever is higher. In case of any defect or non-functioning of Flow Meter, the
licensee shall bring the fact to the notice of the concerned Executive Engineer forthwith and
take appropriate steps to remove the defects in the Meter or for replacement thereof within a
period of two months and in such cases the fees shall be charged on the quantity of water
allocated for the said period of three months or till the defect in the Meter is removed or the
Meter is replaced, as the case may be, whichever is earlier, and where the licensee fails to
bring the defect or non functioning of the Meter to the notice of the Executive Engineer or
fails to remove the defects in the Meter or to replace the same, as the case may be, within
the stipulated period the agreement shall be liable to cancellation and thereafter the water
supply shall be stopped.
5. The applicant shall construct full proof effluent discharge plant before commissioning
of the project. For proper test of such effluent there shall be computerized testing system
and the applicant shall give details of effluent discharged in the natural source (in river and
nala).
6. For construction of head works and control mechanism i.e. intake well, pump house
and other related facilities. M/S Mahanadi Coal Fields ( Talcher Colliery ) Limited will get the
land leased in their favour through IDCO as is done in respect of any other Govt. land
required by the Industry. IDCO will make available land on long term lease to M/S Mahanadi
Coal Fields ( Talcher Colliery ) Limited The continuance of the lease agreement will be
subject to the condition that; the industry shall pay water charges as per prevailing water rate
and all other dues of Government and IDCO from time to time.
7. M/S Mahanadi Coal Fields ( Talcher Colliery ) Limited would be required to pay
advance water charge for a year in shape of bank draft in favour of Executive Engineer
concerned or in shape of in shape FDR duly discharged by the company as non-interest
bearing security deposit be adjusted against defaults. The water charges will be paid by the
company one month in advance.
8. In case of water supply for the M/S Mahanadi Coal Fields ( Talcher Colliery ) Limited
is to be met from a common source through a sharing mechanism, such common

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infrastructure for drawal of water will be constructed, maintained and operated either by
IDCO or Special Purpose Vehicle (SPV) after taking due clearance from IDCO. Water will be
supplied to M/S Mahanadi Coal Fields ( Talcher Colliery ) Limited by IDCO/SPV and they
would also be liable for payment of water rate to the Govt. and will in turn have
arrangements as similar therein as clauses (6) & (7) of this agreement.
9 M/S Mahanadi Coal Fields ( Talcher Colliery ) Limited would compensate the loss of
power generation in any due to drawal of water from ……………..source.
10. M/S Mahanadi Coal Fields ( Talcher Colliery ) Limited will not disturb the normal flow of
water so that riparian right in the downstream will be affected and the company shall have no
claim on the account.
11. The drawal mechanism for raw water and disposal system of effluent to be established
by the industry without disturbing existing eco system and environmental set up.
12. The Rehabilitation and Resettlement Action Plan / Welfare Action Plan, if so required
will be prepared in conformity with the current Orissa Rehabilitation and Resettlement Policy
and executed by the company at its own cost under the supervision of the Water Resources
Department and the Collector of the Angul District .
13. M/S Mahanadi Coal Fields ( Talcher Colliery ) Limited shall not claim as a matter of
right to get the desired quantity of water during non-monsoon and lean period to meet their
full industrial use and the company has to make adequate storage facility in their own land
for supply of water to their plant during such period.
14. The safety design of all the structures lies fully on the company.
15. In case of any dispute / arising out of this agreement, the same shall be referred to
Government and decision of the Government of Water Resources Department shall be final.
16. Any surplus power from the captive power plant shall be sold by M/S Mahanadi Coal
Fields ( Talcher Colliery ) Limited to GRIDCO or any other entity to be notify by the state
Government under mutually acceptable terms and conditions.
17. The allocation of water will automatically lapse if the company does not use the water
for the purpose applied for within three years of allotment.
18. This agreement shall be valid for a period of 3 years subject to renewal of the same
by the Executive Engineer. For renewal of the agreement, the concerned drawee has to
apply minimum three months before the expiry of the agreement.
19. If the Industry is found to be drawing water unauthorisedly before signing the
agreement / installation of flow-meter, the concerned Executive Engineer, will charge a penal
rate at six times the normal rate as provided in Schedule II and III of the Odisha Irrigation
(Amendment) Rules, 2010.
20. Government shall be at liberty to review the water allocation unilaterally in case of
exigencies.

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21. The Executive Engineer or his authorized representative reserves the right to inspect
all installations of drawal and disposal mechanism during and after construction including
intake structure, flow meter and treatment plant.
22. M/S Mahanadi Coal Fields ( Talcher Colliery ) Limited will have to show clearly in
water management plan as to what storage facility the company will create for the lean
season and to what extent and how the water is going to be recycled which shall be a part of
the project report of the unit.
23. M/S Mahanadi Coal Fields ( Talcher Colliery ) Limited may engage at their own cost
consultant(s) experienced in the field to take-up field investigations, prepare design and
drawing to set up the water supply scheme for drawing water from Government water source
/ Irrigation works for their proposed plant. The actual work will start after approval of the
scheme by the competent authority of Water Resources Department who can inspect the
work during the construction.
24. The exact place for lifting will be decided in consultation with authority of Water
Resources Department.
25. Department of Water Resources shall not be held responsible for non-availability of
water due to dry season, disruption, repair and maintenance of canal/ reservoir.
26. The agreement to be executed by the industry / commercial establishment with local
authority / Executive Engineer must be approved by the Department of Water Resources
before drawal of water.

27. M/S Mahanadi Coal Fields ( Talcher Colliery ) Limited will follow the principle of zero
discharge effluent to the river. It would recycle the water for its consumption and hence the
demand on fresh water would be makeup purpose only.

28. In no circumstances, the industries shall be allowed for drawal ground water for
operation purpose.

29. If the Industries violets any one of the above conditions it may lead to immediate
cancellation of allocation.

30. In case of any dispute/ interpretation required, the decision of the Government in
Water Resources Department shall be final.

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 In witness whereof, the parties have put their hands and seals the day & year first
above written.
In the presence of Witnesses. Signature of the Applicant.
1. 1.

2. 2.

In the presence of Witnesses. Signature of the Sureties.

2. 2.

In the presence of Witnesses.

2.
Signature of the Executive Engineer
Angul, Irrigation Division, Angul.
( acting in the premises for and on behalf
of the Governor Odisha)
.