Proceedings of Government of Karnataka Sub:- Entrustment Of

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Proceedings of Government of Karnataka

Sub:- Entrustment of Recirculation of water in Jog Falls for all seasons in Shimoga District project to M/S B.R.S Ventures (M.N.C Group), Abu Dubai.

Ref:- 1. 2015 -16 financial statement 2. Order No. DT TP, 2015-16 dt.05-11-2015 3. Order No. DT 39 TP, 2015 dt. 10-05-2016 4. Order No. DT 39 TP, 2016, dt.27-05-2016

Proposal: Vide Ref (1), Hon'ble Chief minister in his 2015-16 budget speech announced that, water recirculation for Jog falls shall be taken up in joint Venture/PPP model. Vide Ref (2), in - principle approval has been accorded for the project. Accordingly, Detailed project report has been prepared by the M/s National Project Construction Corporation Limited (NPCC), Govt of India.

Vide Ref (3), Karnataka State Tourism Development Corporation was entrusted the work of implementation of re-circulation of water for Jog falls for all seasons.

Further, vide Ref (4), the order for execution of water re-circulation for all seasons by Karnataka State Tourism Development Corporation has been modified and entrusted to Jog Management Authority and Rs.100 Lakhs (Rupees hundred lakhs only) has been allocated for implementation. Further, a Steering Committee has been constituted under the Chairmanship of Additional Chief Secretary to Govt, Energy Department.

Jog falls is one of the 50 most beautiful Waterfalls across the Globe and it is exquisitely world famous wonder falls. Jog falls forms four smaller cascades namely Majestic Raja, The Graceful Rani, Swift Rocket and Boisterous Roarer presenting a glorious, spectacular, unforgettable panorama. Jog falls is one among the 319 recognized tourist destinations in Karnataka. Jog falls attracted 8 lakhs tourists in August 2015. The glorious awesome natural splendour view is available for a very short period of four months during rainy season in a year for the tourists. It is proposed to develop Jog falls into International tourist destination and to attract the tourist round the year, re-circulation of 400 cusecs of water during summer season and also generation of hydroelectricity has been planned.

Dr. B.R. Shetty, M/s. MNC group (B.R. Ventures, Abu Dubai Limited Arab Emirates) had signed Expression of Interest for recirculation of water and Integrated development of Jog falls area during PATA investors summit held in September, 2015 in Bangalore.

During the meeting held on 13-06-2016, in presence of Hon'ble Minister for Large and medium scale industries and Tourism, it was decided that, the Additional Chief Secretary, Energy Department and Chairman of the Steering committee shall examine the proposal and

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Dr. B.R. Shetty, Chairman, B.S.R. Ventures (M/s. MNC Group) UAE, in his request to Hon'ble Minister for Revenue dt. 23-06-2016, expressed his interest to invest on this project as stated in the DPR and agreed to accept the Terms and Conditions of Govt., of Karnataka for implementation and management of the project for next 60 years.

Further, it is requested that, entrance fees for Jog falls visitors will be fixed and utilized for annual maintenance of the project. The remaining income will be shared with Jog Management Authority and according to Govt., rules it is requested to name the project as per the decisions of the donators.

Following decisions have been taken during the Steering Committee meeting held on 25-06- 2016 under the Chairmanship of Additional Chief Secretary to Government, Department of Energy.

1. The detailed information on annual maintenance cost for the project has to be given by the DPR Consultancy. 2. Information shall be provided by calculating and fixing the entrance fees for visitors of Jog falls after successful implementation of the project. 3. The quantification of the proposed electricity generated by the project and required for pumping water shall be provided. 4. Dr. B.R. Shetty, investor for this project informed that, no grants from the Govt., will be anticipated for implementation of the project. Hence, it was decided to obtain Net worth, balance sheet etc., 5. Rs. 400 crores is required for implementation of the project. Hence, Performance Bank Guarantee of Rs. 100 Crores shall be levied from the implementation organization. 6. The above information has to be collected by the Deputy Commissioner, Shimoga. KPCL after suitable information, shall carry out technical examination of project.

The following information has been provided by the project consultants on 27-06-2016 to the to the Additional Chief Secretary, Energy Department.

1. It is noted that, Rs. 17,717 Crores is the Net worth at the end of 31-12-2015 for 5 years unaudited balance sheet of Dr. B R Shetty, Chairman, UAE Exchange Financial Services. 2. Annual maintenance cost for water recirculation and hydro electric power generation is Rs. 450.50 Lakhs

As per the Steering Committee meeting held on 25-06-2016, the Deputy Commissioner, Shimoga, in his letter dated 05-07-2016, has provided following details:

1. Approximately, Rs. 450 lakhs will be the annual maintenance cost after implementation for all season water recirculation project for Jog falls.

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2. Project steering committee shall decide on fixing the entrance fees to the tourists as per prevailing then conditions after execution of the project. 3. Imposing Performance Bank Guarantee of Rs. 100 Crores from executing organization shall be finalised in Cabinet meeting. 4. As per executive summary of the DPR prepared by NPCC, Hydro-electricity produced by this project will be 47.84 million units during monsoon and 47.80 million units during non monsoon season. 5. Information on unaudited balance sheet of implementing organization and and net worth of Dr. B.R. Shetty has been provided.

Opinion from the concerned Departments for implementation of this project has been received. Keeping in view of tourism in Jog falls in Shimoga District, it was requested the cabinet for approval of project on water recirculation for all seasons and entrustment of this work to M/s. B.R.S. Ventures (MNC Group), Abu Dubai. As per the cabinet decision following order has been issued.

Government order No. DT 107 DT 2016, Bangalore dt 08-09-2016

In view of the information provided in the above proposal, Government is hereby according approval with the following Terms and Conditions for the Detailed proposal of water recirculation for all seasons in Jog falls area of Shimoga district with an investment of Rs. 450 Crores and approximate annual maintenance cost of Rs. 4.50 Crores development works by Jog Management Authority through M/s. B.R.S Ventures (MNC Group).

1. Rs. 450 crores is required for implementation of the project. Hence, Performance Bank Guarantee of Rs. 100 Crores shall be levied from the implementation organization. 2. The project should not depend on releases from Linganamakki Reservoir. No water will be released from the Linganamakki reservoir for the proposed scheme. 3. The construction of pump house and power house for the proposed scheme should not either damage or affect the water availability/ discharge of the Mahatma Gandhi Hydro- electricity Power house which is situated on the opposite bank of the proposed power house. 4. Any additional power consumed over and above that is produced by the project will have to be paid at prevailing tariff to the concerned ESCOM. 5. If Private/ Government land required for the implementation of the project, Department of Tourism shall send proposal to Revenue Department and such land shall be acquired/ allotted for the project. 6. For implementation of the project, Administration department shall enter into Memorandum of Agreement with M/s. BRS organization and in the Memorandum of Agreement, Administration Department shall include terms and conditions to safe guard the interest of Government and tourist. Memorandum of Agreement also include Arbitration Clause as per Government circular No. LAW 273 LAC 2012 dt. 10-01-2014.

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7. Proposed project involves production of 16.61 MW X 2 = 32.33 MW of hydroelectricity. As per EIA notification 2006, hydroelectricity projects of 25 MW to 50 MW capacity will be categorised as B. However, due to the presence of Sharawathi valley wild life sanctuary within 5 km and Lion Tailed Macaque conservation reserve within 10 km radius of the project attracts general conditions of the EIA notification and Environmental Clearance from Ministry of Environment and Forestry and Climate Change shall be obtained before execution of the project.

Tourism Department after referring to the DPR and telephonic discussions with Project consultants expressed that, no forest land is required for the implementation of this project. During implementation of this project, if any Field officer from Forest Department indicates the involvement of forest land, pre- approval from Govt. of India (Under Forest Conservation Act 1980) shall be obtained. The project will be executed only after obtaining the pre- approval.

8. Following information has to be provided to KPCL for onward technical examination in respect of hydro power generation and electricity required for pumping water after implementation of the project.

Sl. Details provided in the DPR Observations No. 1. Power house with 2 generators with an Details of calculations for arriving at 2 installed capacity of 16.61 MW for X 16.61 MW are not available. generation during monsoon months However, considering the following (July- October). Total 47.84 MW (a) 16.61 MW (b) 12:00 Hrs duration per day for generation (c) Period of 4 months (120 days) Total generation will be 47.8368 MU 2. The water stored at foot of the falls will Normally, 125% of the generator will be pumped to a reservoir located on be considered for acting as a motor on upstream of the falls near Seeta katte such 20.7625 MW each is required bridge during non monsoon period roughly to pump the water. Since (Nov- June- 8 months) pumping is required to a height of 375 Power consumption for pumping water mts. And distance is approximately (12 hrs per day) considered is 2 X 24.74 3210 mts. The power required will be MW amounting to total of 47.80 MU more than 20.7625 MW as stated above. However, considering the above as the motor capacity, the power consumption for 12 Hrs. Per day for 8 months (240 days) period will be around 119.592 MU. Difference between power generated at the foot of the hill and power consumption for pumping works out to 71.792 MU.

9. Jog Management Authority shall fix entrance fees at an appropriate time. 10. Under no circumstances, name of the Jog falls shall not be changed.

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11. Implementation of the project shall be carried out as per the DPR submitted to the Government. 12. Project has to be completed within the requested time by the organization. 13. For effective implementation of the project, Jog Management Authority shall have the power to impose any appropriate terms and conditions at any time.

By orders and in the name of Governor

Sd/- (H K Ravimurthy) Joint Secretary to Government, Tourism Department

To: The Compiler, Karnataka Gazette, Bangalore - to publish 100 copies in the next edition.

Copy To: 1. Comptroller and Auditor General, Karnataka, Bangalore. 2. Additional Chief Secretary to the Government, Energy Department, Vikasasoudha 3. Additional Chief Secretary to the Government, Department of Forest, Ecology and Environment 4. Additional Chief Secretary to the Government, Finance Department, Vidhanasoudha 5. Director, Tourism Department, Kanija Bhavan, Bangalore 6. Managing Director, Karnataka Power Transmission Corporation Limited, Bangalore. 7. Managing Director, Karnataka Power Corporation, Bangalore 8. Deputy Commissioner and Chief Executive officer, Jog Management Authority, Shimoga 9. Managing Director, Karnataka State Tourism Development Corporation Limited, Kanija Bhavan, Bangalore 10. Dr. B.R. Shetty, M/s. BRS Ventures (MNC Group), Abu Dubai, UAE 11. Personnel Secretary to the Chief Secretary (Cabinet), Vidhanasoudha (Case No. 400/2016), Vidhanasoudha, Bangalore. 12. Personnel Secretary to the Hon'ble Minister for State for Information Technology, Biotechnology and Tourism, Vikasasoudha, Bangalore. 13. Guard file/ Additional copies.