IN THE MATTER OF ARBITRATION

BEFORE THE TRIBUNAL COMPRISING OF

THE LEARNED ARBITRATOR SHRI ANIL RAMESH DAVE

AND

THE LEARNED ARBITRATOR SHRI RAMESH KUMAR DUTTA

AND

THE LEARNED ARBITRATOR MRS GYAN SUDHA MISRA

IN THE MATTER OF:

Bihar State Power Holding Company Ltd &Ors .. Claimants

Versus

M/s Reliance Infrastructure Limited ..Respondents

 IN THE MATTER OF ARBITRATION

BEFORE THE TRIBUNAL COMPRISING OF

THE LEARNED ARBITRATOR SHRI ANIL RAMESH DAVE

AND

THE LEARNED ARBITRATOR SHRI RAMESH KUMAR DUTTA

AND

THE LEARNED ARBITRATOR MRS GYAN SUDHA MISRA

IN THE MATTER OF ARBITRATION BETWEEN:

(1) BIHAR STATE POWER (HOLDING) COMPANY LIMITED

is a company incorporated under
the provisions of the Companies
Act, 1956 and having its
Registered office at VidyutBhwan, Bailey Road, Patna-800001
(2) NORTH BIHAR POWER DISTRIBUTION COMPANY LTD.
VidyutBhawan Bailey Road,
Patna-800001
(3) SOUTH BIHAR POWER DISTRIBUTION COMPANY LTD.
VidyutBhawan, Bailey Road,
Patna-800001

..Claimant
Versus

RELIANCE INFRASTRUCTURE LIMITED,

a company incorporated under the provisions
of the Companies Act,1956 and having its
registered office at H Bloack, 1st floor,
DhirubhaiAmbani, Knowledge City,
Navi Mumbai-400710. Respondents
Counter Claim on behalf of the BSPHCL (NBPDCL & SBPDCL)

Before raising the counter claim, the Respondents wish to present the
necessary background of the dispute as also the scope of work as per the RFP,
the LOA and the clarification sought and tendered in the pre-bid conference
and the guidelines under IPDS Scheme of MOP with respect to Single
Software license for the entire State.
It is submitted that some delay in presentation of the counter claim in the
Arbitration proceeding is occasioned by Petition submitted to the
Respondents on behalf of the claimant seeking amendment in the prayer
portion vide Petitions submitted on 22.05.2017 which required deliberation at
the end of Respondents. Subsequently, the claimant held meeting on
26.05.2017 and 04.07.2017 and submitted letter dated 06.07.2017 regarding
withdrawal of the prayer clause on payment from the Arbitration.
The initial claim couples with the two Petitions were examined before
submitting the counter claim.
Before submitting the stand of the Power Company strictly based on RFP and
the allied documents being separately filed as Volume II, the background of
the project and dispute may be permitted to be placed as follows:

1. Restructured Accelerated Power Development and Reforms

Programme (R-APDRP)
Ministry of Power, Govt. of India, has launched the Restructured
Accelerated PowerDevelopment and Reforms Programme (R-APDRP) in
the XI Five year Plan. Power FinanceCorporation Limited (PFC) was
designated by Ministry of Power, Govt. of Indiaas the Nodal Agency for the
programme. The programme spans from data acquisitionat distribution level
till monitoring of results of steps taken to provide an ITbackbone and
strengthening of the Electricity Distribution system across the Countryunder
the programme. The objective of the programme is reduction of AT&C
lossesto 15% in project areas. The program is divided into 2 parts: Part-A
and Part-B.
Part-B includes distribution strengthening projects which is not
implemented by M/s Reliance Infrastructure and is not under any arbitration
issue.

2. The Programme
 Programme consists of Part-A covering Information Technology
application in theelectricity distribution system and Part B covering the
System strengthening, improvementand augmentation of distribution system
capacity. The focus of the programmeis on actual, demonstrable
performance in terms of loss reduction. Establishmentof reliable and
automated systems for sustained collection of accurate base linedata, and the
adoption of Information Technology in the areas of energy accountingwill
be essential for the success of the R-APDRP.
The Programmewas proposed to be implemented on all India basis
covering Towns andCities with a population of more than 30,000 (10,000 in
case of Special CategoryStates) as per population data of 2001 Census.

3. The activities to be covered under RAPDRP Part-A.

RAPDRP Part A : Preparation of Base-line Data System for the
projectarea covering Consumer Indexing, GIS Mapping, Automatic
Metering (AMR) on DistributionTransformers and Feeders, and Automatic
Data Logging for all Distribution Transformers& Feeders and SCADA /
DMS system. It would include Asset Mapping of the entire
distributionnetwork at and below the 11kV transformers and include the
Distribution Transformersand Feeders, Low Tension lines, poles and other
distribution network equipment.It will also include adoption of IT
applications for meter reading, billing &collection;energy accounting &
auditing; MIS, Redressal of consumer grievances and establishmentof IT
enabled consumer service centers etc.
The I.T. implementation agency (ITIA) would supply, install and
commission one integratedIT solution within the broad framework provided
in the SRS (System Requirement Specification)document. Steering
Committee of Ministry of Power under the guidance of Ministryof Power
has finalized a detailed SRS document which covers all the components
ofthe project including hardware, software, networking, GIS among others
which shallhelp the utilities improve their performance.
R-APDRP Part-A programme is being implemented in 67 towns of
Bihar.
R-APDRP project includes two major parts first is creation and
implementation of central softwares to be hosted in Data Canter and Disaster
Recovery centre and second is field offices devices for 71 towns. The
issued RFP clearly mentioned that the Central software already hosted at
Data Center and Disaster Recovery centre shall have capability to cater
the requirement of entire Bihar and same has been also clarified through
 reply of pre-bid queries as well as through presentation of RFP during
pre-bid meeting.

4. Licensing Sizing as per RFP/Tender

Reference Document: [RFP Page-13, Point-47], [LOA Page-31,Point No-

34]

The GIS licensing should cover viewing rights to all users and
edit/deletion/addition rights to one identified authorized user at
Electric Supply Division level in both the Distribution companies of
BSPHCL.

All the licenses shall be owned by BSPHCL even after the end of
period of 5 years from the date of GO- LIVE.

The BSPHCL shall be at liberty to deploy the solution anywhere

within the state of Bihar/license area of the DISCOMs under
BSPHCL.

The GIS licensing should cover viewing rights to all users and
edit/deletion/addition rights to one identified authorized user at
Electric Supply Division level in both the Distribution companies of
BSPHCL.

All the licenses shall be owned by BSPHCL even after the end of
period of 5 years from the date of GO- LIVE.

The BSPHCL shall be at liberty to deploy the solution anywhere

within the state of Bihar/license area of the DISCOMs under
BSPHCL.

5. Clarification in the pre-bid conference

In the pre-bid conference dated 21.03.2013 suggestions were put forth
that the enterprise licensing will cover all consumers in the R-APDRP Areas
within the jurisdiction of both the distributions companies. The Response of
BSPHCL has been that the enterprise is meant for the entire state of Bihar.
The exact response has been as follows:
 The enterprise means all the areas covered within the jurisdiction
of both the Distribution Companies

6. Guidelines of IT/ERP implementation under IPDS Scheme of Ministry

of power government of India.

The stand of the Power Company that enterprise wide license under
the RFP is to apply for non RAPDRP towns as well stands confirmed by the
PFC which has issued guidelines for the IPDS scheme. It clearly says that
license procured under RAPDRP Project would be good for other areas of
the State hence there is no requirement for further software licenses. The
said guidelines may be reproduced as hereunder:

Application software license is not envisaged due to

procurement of Enterprise licenses under RAPDRP. However,
application software license may be considered to the extent required
subject to certification by utility in the DPR that they have not
procured enterprise wide license for the same under RAPDRP along
with suitable justification for the same. (Page-2, point-g).

In the background of the above facts and circumstances the BSPHCL

on the point of counter claim and justification submits as follows:

i. That license cost for entire Bihar has been considered in the
floated tender document for RAPDRP Part-A project. Hence
M/s Reliance Infrastructure has to provide all the software
licenses (Central Software) for entire Bihar without any
additional cost to the utility for central software licenses.
ii. Utility has estimated the cost of central software licenses based
on the cost quoted by the M/s Reliance Infrastructure, the
estimated cost of central software for Non-RAPDRP part is
Rs.102,50,74,660/- (Rupees One hundred two Crore fifty lacs
seventy four thousand six Hundred and sixty only).
iii. Present consumer count in R-APDRP towns is 15,00,000. The
software cost per consumer has been derived to Rs. 123/- on the
basis of total cost of software given by M/s Reliance
 Infrastructure in price bid and total number of consumers, this
unit cost of software has been derived by dividing the total cost
of software by total no. of consumers. Presently, total no. of
consumers in Non- RAPDRP area is 83,24,930. The total
software cost required for Non-RAPDRP consumers is Rs (123
x 83,24,930) i.e. Rs102,50,74,660. In this cost it is assumed that
the AMC cost is included in the quoted by M/s Reliance-
Infrastructure. The detailed is given below:-

S.No Software license application Cost

1 AMR based Meter Data Acquisition & Analysis software 34,38,300
2 Energy Audit software 1,66,18,450
3 New Connection & Disconnection Management System 1,71,91,500
0 (Cost not considered as per
4 GIS application
tender)
0 (Cost not considered as per
5 GIS based Network analysis software
tender)
6 Management Information System 2,92,200
7 Identity & Access Management System Software 1,14,61,000
8 Metering Billing Collection Software 2,29,22,000
9 Asset Management System software 28,65,250
10 Maintenance Management System Software 28,65,250
11 Enterprise Management System/EMS solution 2,52,14,200
12 Messaging Software 85,95,750
13 Directory Software 34,38,300
14 Spam Filter 34,38,300
15 IDS & Fire wall system 0
16 Development of web portal & web self service 28,65,250
17 DR software 1,08,87,950
18 IDS & Fire wall system 10,31,490
19 Antivirus 57,30,500
20 Software licenses Databases 4,58,44,000
0 (Cost not considered as per
21 Operating System Software
tender)
Total
184,699,690.00

Present consumers of both Discoms 1,500,000

 Software unit cost for RAPDRP consumers 123

Count of Non RAPDRP consumers 8,324,930

Total estimated cost for Non-RAPDRP area:- 102,50,74,660
*All software cost has been taken as per the cost quoted by M/s R-Infra in the bid.
* Considering AMC cost has been included in the quoted price by M/s R-Infra in the bid.

iv. That against the claim of claim of so called additional cost

implication for procurement of additional software license to
cover non RAPDRP area/entire State of Bihar, it is stated that
the same is totally misconceived and hence denied by the
Power Company. On the contrary from the details of costing
submitted in the tabular form the total estimated cost for the
non RAPDRP hare has been computed to Rs. 1,02,50,74,660/-
it is stated that if the claimant does not provide the Power
Company the software/license for the entire state of Bihar the
additional license would create liability to the above extent
which is to be compensated by the claimant to the Power
Company.
v. That unless expressly admitted all the plea taken by the
claimant contrary to the stand of the Power Company may be
deemed as denied.

Dated this 16th day of July, 2017

Statement of Claim drawn by

Advocate Shri. A.K. Ojha

Advocate for the claimants.