CENTRAL ELECTRICITY SUPPLY UTILITY OF ORISSA

CENTRAL ELECTRICITY SUPPLY UTILITY OF ORISSA EXPRESSION OF INTEREST For MULTI SERVICE OPERATORS For Cable TV signal transmission, broadband data communication, IP telephony on SWISS CHALLENGE METHOD IDCO Towers, 2 nd Floor, Janpath, Bhubaneswar- 751022, Odisha Phone - (0674) 2541575, Fax - (0674)-2543125 Website: www.cesuodisha.com

CENTRAL ELECTRICITY SUPPLY UTILITY OF ORISSA IDCO TOWERS ( II nd Floor), Janpath,Bhubaneswar-751022 Phone : 2541575 Fax : 0674-2543125 Website : www. cesuodisha.com. Expression of Interest for Multi Service Operators ( MSO). Central Electricity Supply Utility of Orissa (CESU) invites Expression of Interest (EOI) from reputed firms for Cable TV signal transmission, broadband data communication, IP telephony etc within the jurisdiction of CESU area for laying Optical Fibre Cable in inter and intra-city main trunk routes on Build, Own and Operate (BOO) model for a period of fifteen years by using the network of CESU consisting of about 6,34,120 nos. of Poles. For details please visit our web site www.cesuodisha.com/www.cescoorissa.com Last date & time of submission of documents: 1 P.M of Dt.20.06.2012. Date & time of opening of EOI: 3.30 P.M of dtd 20.06.2012. N.B : Request shall be sent to the shortlisted firms only for submission of financial bids. Chief General Manager (Com.) 1

Introduction / Intention: CESU intends to permit three (03) multi service operators on lease rental basis to lay Optical Fibre Cable in inter and intra-city main trunk routes on Build, Own and Operate (BOO) model for a period of fifteen (15) years by using the distribution network of CESU consisting of about 6,34,120 nos. of Poles for multipurpose uses such as Cable TV signal transmission broadband data communication, IP telephony etc. with the terms and conditions laid down below. Minimum Eligibility Requirement of Multi Service Operator (MSO) : The MSO shall have:- (i) to be atleast a C Class Internet Service Provider (ISP). (ii) License as granted by the Department of Telecommunications, Government of India, as it is required for the Broad Band Communication Services; (iii) A valid postal license for the distribution of the Cable TV signal as per the Cable Television Network (Regulation) Act, 1995 and all the Rules made there under; (iv) Past experience to minimum period of 03 years for Cable TV distribution service and/or Broad Band Service. (v) Matching technical standards set by the Bureau of Indian Standards (BIS) for Cable TV network; (vi) Service Tax Registration by the Central Excise and Customs Department; (vii) Entertainment Tax Registration as per the Government of Odisha Rules; (viii) No due certificate on payment of Inspection fees, Electricity dues etc. from the concerned authorities. (ix) The average annual turnover should not be less than Rs.6 Crore (Rupees Six Crore only) having 20% liquid asset during last three (03) financial years i.e. FY 2009-10, 2010-11 & 2011-12. The audited financial report should be submitted along with copy of PAN Card. (x) Bidder should be financially sound and stable hence the current liquid assets and/or access to credit facility from the Bank to be submitted. (xi) Power of attorney / Board Resolution of the authorized signatory to the Document / Financial Bid. Note : The documentary evidence in support of the above, self attested in ink and with company seal along with the company profile and enclosed undertaking should be submitted along with the offer. 2

MULTI SERVICE OPERATOR (MSO): PART - I 1. MSO should be an Individual firm (Single Party) only, meeting all the minimum eligibility requirements. 2. CESU will shortlist MSOs after evaluation of their minimum eligibility, experience, net worth, credit-worthiness etc. Thereafter, the financial bid shall be invited from amongst the shortlisted MSOs only. 3. The MSOs will offer their financial bid towards lease rental of all electric poles of distribution licensee for the entire area under CESU. MSO has to deposit the advance lease rental for the period of three years in one go alongwith his financial bid. The three years lease rental should be deposited in advance by way of Demand Draft drawn in favour of CESU issued by a scheduled bank payable at Bhubaneswar, along with the financial bid in a sealed cover. 4. All MSOs has to deposit three years lease rental in advance alongwith their Financial Bid in sealed envelope. Other qualified MSOs at H2, H3, H4..in order who agrees to match the H1 price has to deposit the balance amount within 10 days from the date of acceptance of H1 offer by them, failing which their offers shall be treated as withdrawn & shall be dealt as per clause-6 of Part-I of this document. 5. The existing Cable operator i.e. M/s ORTEL will be given first opportunity to match the H1 price, if M/s ORTEL is not the H1 holder. If M/s ORTEL matches the same, one more MSO will only be selected instead of selection of two MSOs. After the selection process, the advance payment made by the remaining bidders shall be returned within 30 days of the finalization of the Contract. 6. In the event of any such MSO withdrawing from the bid, such advance lease rental amount deposited shall be forfeited. 7. No interest will be payable by CESU for advance pole rental deposited by the MSOs. 8. The MSOs shall not sub-lease the right to any other firm / person. 9. CESU will not be responsible for any costs or expenses incurred by MSOs in connection with the preparation and delivery of EOI. 3

10. MSOs has to spare 15% of their strands / 1.5 gbps capacity in their Optical Fibre Cable to CESU free of cost utilizing for Supervisory Control and Data Acquisition (SCADA) or for any other purpose. 11. One MSO shall not sell signal and give Right of Way (ROW) for using electric poles for laying cables to more than one LCO in any particular area. 12. The MSOs shall lay Optical Fibre Cable following the Technical Standards and Safety Guidelines issued by Government of Orissa and CESU. Utmost care has to be taken for the safety of the workmen of both the Distribution Companies and that of the operators and the general public as well. MSO shall also ensure safety and security of all installations of the Distribution Companies for which they have been allowed to run their cable networks. MSO shall also comply with the Central Electricity Authority (measures relating to Safety and Electricity Supply) Regulation, 2010 as amended from time to time and other relevant norms for safety and security related to such installations. 13. The MSO shall arrange inspection of all its installations before completion of each financial year by the concerned Electrical Inspector of the area and submit the certificate to the concerned Distribution Companies before the commencement of next financial year, failing which the MSO shall not be allowed to carry out its operation along with other statutory actions as provided in the Rules. 14. The Right of Way (ROW) is the responsibility of MSO. The other mode of Right of Way (ROW) wherever required to lay cables (other than in electric pole) in certain places like road crossing, river crossing etc. should be obtained by the MSOs from the Competent Authorities. 15. If the Municipal Authority/Gram Panchayat for the purpose of beautification or for any other reason decides that the cable shall be laid underground in any particular area, then the decision of Municipal Authority/Gram Panchayat will be binding on MSO/LCO. In case, any shifting or alteration in the position of the laid cable is required due to shifting of poles because of widening of roads, construction of flyovers etc. the MSO shall do the same at its own cost within a specified period. 16. Clearances and safety : (a) A minimum ground clearance of 3.05m subject to its approval by the Chief Electrical Inspector or as otherwise specified by Chief Electrical Inspector should be maintained by the MSOs for the cable taken along the street. 4

(b) A minimum clearance of 1.2m should be maintained by MSOs between the cable and the lowest conductor of CESU distribution lines i.e. any functional conductor including that of the street main or any earthed conductor. (c) When the cables are taken across the roads, the minimum ground clearance to be maintained is 5.8m. Since this is difficult to achieve at the same time maintaining a minimum of 1.2.m clearance from the lowest conductor of the power line, underground cables may be used at road crossing with sanction from appropriate authorities. For mechanical strength, the cables may be encased in suitable insulated pipes. 17. A list of Power Supply Unit/Amplifiers to be installed and connected to LT overhead-line of CESU or LT less substation, as the case may be by the MSO / its LCO, has to be submitted to the concerned S.D.O. Electrical and Executive Engineer/Supply Engineer of CESU along with name-plate-details for ensuring the safety of installation and also energy-consumption so that separate claim bill can be served to the MSO (i.e. LCO s energy bill is also to be paid by the MSO) at 100% load-factor in General Purpose Supply category as per the tariff applicable by OERC from time to time. However, such service connection to the LT over head line or LT less substations as the case may be shall be carried out by CESU with all necessary materials to be supplied by MSOs / LCOs as per departmental practice & Codal procedures. 18. Erection of cables and subsequent maintenance and service connection should be effected with due prior intimation to and supervision of the authorized personnel of CESU adopting all safety procedures as required for power lines. 19. In case of any accident to men/equipments occurring due to snapping of electric conductor over communication cable or on account of the communication cable coming into contact with any parts of the installation which have become live for any reason, CESU will not be held responsible and no compensation whatsoever will be claimed from CESU for damages either by MSOs or its LCO s or by any of their subscribers. (a) (b) CESU will not have any liability in respect of claims under Workmen s Compensation Act or otherwise made by the employee of MSOs / its LCO s consequent to any accident during their course of employment under MSOs. In case of any accident or any other liability on account of the communication cable coming into contact with any part of the live electrical installations, CESU will not be liable for any Compensation or damages whatsoever. 5

(c) (d) In case of any accident or any other liability on account of the communication cable coming into contact with any part of the Electrical Installations which become live, CESU will not be liable for any Compensation or damages whatsoever. MSOs have to maintain all safety conditions as per Govt. /CESU guidelines. 20. The officer or workmen of CESU will have the right to dismantle and reconnect any communication cable while doing maintenance work of electric lines. In case the TV Cable in any part is required to be removed permanently for any purpose of CESU, CESU shall be free to do so and MSOs or the subscribers will not be eligible for any compensation or other claims on that account from CESU. 21. CESU will not be responsible for any interruption and/or interference caused to the quality of either video/audio signals due to the proximity of 11KV or 33KV or other high-tension lines to the communication cable. 22. No maintenance of the communication cable will be done on electric posts from evening to morning. 23. Necessary arrangements must be made by MSOs to replace immediately any ruptured/deteriorated cable, if pointed out by the staff of CESU. 24. Any financial loss caused to CESU while installing the cable by MSO or its LCO either by damage to CESU property or power failure or any type of damage to third party, then the loss has to be borne by MSOs. 25. The awarded MSOs shall make the following payments to CESU : (a) Annual pole rent is to be deposited 180 days in advance with CESU before completion of third year. Notwithstanding the payment of monthly energy charges regularly by MSO/LCO as the case may be for supply of electricity to the Power Units/Amplifier/Boaster of MSOs / its LCOs in case of default in payment of annual pole rental in advance on the assigned dates related to the fourth year & onwards, CESU will disconnect the power supply to all Power Supply Unit/Amplifiers/ Main Transmission Centre of MSO and LCO after giving 7 (seven) days notice. The period of 7 (seven) days would be counted from the date of issue of notice by the Supply Engineer under whose jurisdiction the poles comes. 6

(b) (c) (d) (e) (f) The MSO shall seek prior approval and make advance lease rental deposit on annual prorate 365 days basis, in the event of any extension of the cable network on additional poles other than the poles / area covered under the agreement by the MSOs or by its LCO s. Monthly energy bills will be served to MSOs for their transmitting station(s) will be on General Purpose Supply category consumer tariff basis as per codal procedure. This may be revised from time to time as per codal procedure. Monthly energy bills will be served to MSOs for supply of electricity to the Power Supply Units/ Amplifiers/ Boosters of MSOs / its LCO s on General Purpose Supply category tariff on 100% Load Factor (24 Hrs) basis for billing purpose. MSOs and its LCOs has to make payment of Security Deposit equal to two months of electric consumption per month as per the tariff & codal procedure for their transmitting station(s)/ Power Supply Units/ Amplifiers/ Boosters MSOs / it s LCOs has to transmit everyday CESU advertisements of two 02 minutes during primetime alongwith scroll of any CESU notice / announcement / message as & when required free of cost. 26. In no circumstances, MSOs should interfere with the smooth functioning of the distribution of power by CESU. 27. MSOs will indemnify and keep CESU harmless against any expenses that may be incurred in connection with any suit or other proceedings filed in any court or before any authority in respect of any matter relating to and/or arising out of the distribution of TV cable of MSOs / its LCOs using the poles of CESU. 28. MSOs shall make payment of any other taxes/duties/dues/charges that may be directed by the Govt. of Odisha / Govt. of India / OERC from time to time in addition to the pole rent and will ensure that LCO is complying with all statutory requirements. 29. Supervision charges @ 6% of total cost of Cables, Power Supply Unit (PSU) / Boosters / Amplifiers has to be deposited with CESU in advance by MSO for himself & for its LCO before lying of the same on CESU Poles. 7

PART-II LOCAL CABLE OPERATOR (LCO) 1. LCO (Local Cable Operator) will be selected by MSO who will be receiving the signal from MSO and distribute the same to the last mile subscribers at their premises in Residential/Commercial areas. The MSO will grant Right of Way (ROW) to only one LCO in a particular area for laying Coaxial/Optical Fibre Cables by using the electric poles. 2. In case the LCO requires any other means for carrying the cables other than the poles of CESU, the permission from Competent Authority shall be obtained by the LCO. 3. If the Municipal Authority/Gram Panchayat for the purpose of beautification or for any other reason decides that the cable shall be laid underground in any particular area, the decision of Municipal Authority/Gram Panchayat will be binding on the LCO. In case any shifting or alteration in the position of the laid cable is required due to shifting of poles because of widening of roads, construction of flyovers etc. the MSO shall do the same at its own cost within specified period. 4. The LCO shall lay Coaxial Cable/Optical Fibre Cable following the Technical Standards and Safety Guidelines issued by Government of Odisha and CESU. Utmost care has to be taken for the safety of the workmen of both the Distribution Companies and that of the operators and the general public as well. LCO shall also ensure safety and security of all installations of the area for which they have been allowed to run their cable networks. LCO shall also comply with the Central Electricity Authority (Measures relating to Safety and Electricity Supply) Regulation, 2010 as amended from time to time and other relevant norms for safety and security related to such installations. 5. The LCO shall arrange inspection of all its installations before completion of each financial year by the concerned Electrical Inspector of the area and submit the certificate to the concerned Distribution Company before the commencement of next financial year, failing which the LCO shall not be allowed to carry out its operation along with other statutory actions to be taken as provided in the Rules. 6. Minimum Eligibility Requirement of LCO: The LCO shall have:- (i) A valid postal license for the distribution of the Cable TV signal as per the Cable Television Network (Regulation) Act, 1995 and all the Rules made there under; 8

(ii) (iii) (iv) (v) Matching technical standards set by the Bureau of Indian Standards (BIS) for cable TV network; Service Tax Registration by the Central Excise and Customs Department; Entertainment Tax Registration as per the Govt. of Odisha Rules. No due certificate on payment of Inspection fee, Electricity dues etc. from the concerned authorities. General conditions: PART-III i. The selected MSO would enter into an agreement with the distribution licensee for a period of 15 years with provision that the terms and conditions including rates shall be reviewed after every 5 years. ii. iii. iv. iv. The rights vest with CESU to terminate the agreement even before the expiry of the terms and conditions of the agreement in case of any default or breach of any term and condition if it is found in any way detrimental to the interest of CESU or the State s interest after giving reasonable opportunity of show cause. In case of any differences of disputes relating to or arising out of the above agreement, the same shall be referred to Chief Operating Officer, CESU for decision at the first instance. If Chief Operating Officer, CESU cannot settle the issue amicably, then the same shall be referred to Government of Odisha in Energy Department, whose decision shall be final and binding on both the parties. Any financial loss caused to CESU while installing the cable by MSO/its LCO either by damage to CESU s properties or power failure has to be compensated. The MSO will indemnify and keep CESU non-liable against any expenses that may be incurred in connection with any suit or other proceeding filed in any court or before any authority in respect of any matter related to and/or arising out of the distribution of signal of such operator using the poles of CESU. v. MSO will also indemnify and keep CESU non-liable against any claim or damages payable towards any accident to the employee of MSO/LCO or to public person due to such installation by MSO/LCO. vi. vii. Any deviation or breach of the guideline will entail cancellation of agreement. In the event of any specified date for submission or opening of EOI documents being declared as holiday for CESU, the same will be received / opened up at the appointed time on the next working day. CESU also reserves the right to accept 9

or reject any or all EOI without assigning any reason thereof, if the situation so warrants. viii. ix. The MSO / LCO must not have been banned or debarred or blacklisted by any State Govt. / Central Govt. / Central or State Govt. Undertakings / Utilities / Organizations etc. in the past. CESU reserves the right to modify, cancel, postpone, withdraw the EOI without assigning any reason thereof and shall bear no liability whatsoever consequent upon such a decision. x. The numbers of poles are not exhaustive, and may vary on actual field conditions while taking over by MSOs. The annual pole rental may be revised after joint verification within 90 days of taking over, but the Unit rate/year will be intact. xi. Each MSO should, therefore, conduct their own investigations, studies and analysis and should check the accuracy, adequacy, correctness, reliability and completeness of the assessments, statements and information contained in this EOI and may obtain independent advice from appropriate sources before submission of financial bid. 10

U N D E R T A K I N G (To be made in the Firm s official letterhead) Under the scope of the Expression of interest No Dt., I on behalf of M/s do hereby undertake that, there shall be no deviation in any manner both for commercial & technical requirement as stipulated in the documents. We had not been banned or debarred or blacklisted by any State Govt. / Central Govt. / Central or State Govt. Undertakings / Utilities / Organizations etc. in the past. If any document / statement are found to be incorrect, misleading & false, CESU reserves the right to reject the bid / terminate the agreement / can take legal action against us, without paying for any damage / compensation etc. to us or to our LCOs. Signed this.day of 2012 SIGNATURE OF THE AUTHORISED SIGNATORY OF MSO WITH DESIGNATION & SEAL OF THE FIRM 11

PRICE SCHEDULE FORMAT FOR SHORTLISED MSO s (To be submitted in the MSO s letter head) I, on behalf of M/s. offer the following prices for Cable TV signal transmission, broadband data communication, IP telephony etc within the area of jurisdiction of CESU by laying Optical Fibre Cable in inter and intra-city main trunk routes on Build, Own and Operate (BOO) model. Sl. no Particular Pole Qty. Unit Rate/Year in (Rs.) Total Cost for One Year in (Rs.) 1 Pole Rent 6,34,120 Nos Rs Rs. (Rupees Only) I have attached herewith three years advance pole rental, amounting to Rs ( Rupees only) vide Demand Draft No Dt of bank. Note: i. The above item wise rates are only for single run cable. ii. No interest will be payable by CESU on the advance pole rental amount. iii. The financial bid should be quoted for entire quantity. Bid for partial quantity shall not be accepted & the bid is liable for rejection. Signed this.day of 2012 12 SIGNATURE OF THE AUTHORISED SIGNATORY OF MSO WITH DESIGNATION & SEAL OF THE FIRM