APR Constructions Limited - Saffron Capital

5. APRCL - VNR (JV)
Our Company has entered into an Memorandum of Understanding/ Joint Venture Agreements with M/s VNR
Infrastructures Limited (formerly M/s V Narayana Reddy) (collectively referred to as “Partners”) pursuant to
which joint venture entity APRCL-VNR (JV) has been formed for bidding and execution of following projects:
(a) Memorandum of Understanding dated November 11, 2006 for jointly bidding for the bids called for by Rail
Vikas Nigam Limited for carrying out “Construction of new B.G. line from Obulavaripalle to Krishnapatnam
– Phase 1 works from Venkatachalam to Krishnapatnam in South Central Railway which includes Earth
Work in formation, Construction of bridges, Services and Residential Buildings, Installation of Tracks,
Station yards, General Electrical works including Power Line Crossing and other Miscellaneous works along
with testing and Commissioning including Supply of all materials, Except Rails, Line Sleepers and
Turnouts”. The share between the partners for said work is in the ratio of 85:15, APRCL: VNR.Rail Vikas
Nigam Limited has awarded the contract to the JV vide letter dated March 29, 2007. The said Joint Venture
has entered in to a sub-contracting agreement dated June 23, 2007 with APRCL whereby the entire project
was sub-contracted to our Company for a commission of 0.75% on gross bills.
(b) Memorandum of Understanding dated October 18, 2007 for jointly bidding for the bids called by Steel
Authority of India Limited for carrying out “Development/ Construction of Railway Yard facilities under
expansion plan of SAIL-ISP near Damodar Railway Station.” The share between the partners for said work
is in the ratio of 70:30, APRCL: VNR. Steel Authority of India Limited has awarded the contract to the JV
vide letter dated March 13, 2008. The said Joint Venture has entered in to a sub-contracting agreement dated
January 27, 2009 with our Company, whereby the entire project was sub-contracted to our Company for a
commission of 0.50% on gross bills.
(c) Memorandum of Understanding dated September 13, 2008 for jointly bidding for the bids called by
Northeast Frontier Railway for the carrying out “Civil Engineering works from Km 0 – 42 (between Siliguri
Junction to Galgalia (excluding) in connection with SGUJ – AUB Gauge Conversion Project under Deputy
Chief Engineer, Construction,N.F. Railway, New Jalpaiguri. The work includes feasibility study of Major &
Minor Bridges : Earthwork in embankment & cutting, blanketing, construction of Minor Bridges;
construction of Major Bridges (Substructure & superstructure); construction / making of RBG Rooms,
Platforms, PP sheds, FOB‟s, Level Crossings and other ancillary works.” The share between the partners for
said work is in the ratio of 55:45, APRCL: VNR.Northeast Frontier Railway has awarded the contract to the
JV vide letter dated December 26, 2008. The said Joint Venture has entered in to sub-contracting agreements
dated March 11, 2009 with our Company, whereby the entire project has been sub-contracted to our
Company for a commission of 0.25% on gross bills.
(d) Memorandum of Understanding dated September 13, 2008 for jointly bidding for the bids called by
Northeast Frontier Railway for the carrying out “Civil Engineering works from Km 42 – 76.2 (between
Adhikari (excluding) to Aluabari Road) in connection with SGUJ – AUB Gauge Conversion Project under
Deputy Chief Engineer, Construction, N.F. Railway, New Jalpaiguri. The work includes feasibility study of
Major & Minor Bridges : Earthwork in embankment & cutting, blanketing, construction of Minor Bridges;
construction of Major Bridges (Substructure & superstructure); construction / making of RBG Rooms,
Platforms, PP sheds, FOB‟s, Level Crossings and other ancillary works.” The share between the partners for
said work is in the ratio of 55:45, APRCL: VNR. Northeast Frontier Railway has awarded the contract to the
JV vide letter dated December 26, 2008. The said joint venture has entered in to sub-contracting agreements
dated March 11, 2009 with our Company, whereby the entire project has been sub-contracted to our
Company for a commission of 0.25% on gross bills.
(e) Joint Venture/ConsortiumAgreement dated October 12, 2009 jointly bidding for the bids called by Northeast
Frontier Railway for “Construction and Foundation & substructure of 3 X 61.10m span Major Br. No. 94 on
river Gomti at KM 39/180 on well foundation with earthwork at bridge approaches, other
protection/ancillary works as per railway approved drawing and specification in Agartala and Udaipur
section in connection with Agartala – Subroom new Railway line Project”. The share of profits between the
partners for said work is in the ratio of 55:45, VNR: APRCL. APRCL: VNR. Northeast Frontier Railway has
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