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The contract for the four-laning of SH-37 (Oddanchatram-Dharapuram-Avinashipalayam-TNRSP II PPP 02 SH-37) was awarded by the World Bank to a joint venture (JV) comprising Ramalingam Construction Company Private Ltd., whose directors include Thiru.N.Ramalingam and his sons, Thiru.N.R.Suriyakanth and Thiru.N.R.Chandrakanth. Thiru.N.R.Chandrakanth is the brother-in-law of Thiru.Mithun Kumar. The contract for the four-laning of SH-39 (Tirunelveli-Sengottai-Kollam-TNRSP II PPP 03 SH-39) was awarded by the World Bank to a JV comprising SPK and Co. whose directors include Thiru.P.Subramaniam. Thiru.Mithun Kumar is married to the daughter of P.Subramaniam.

5. All these cost has to be covered in the Annuity quote of the concessionaire.

6. In PPP 02:SH 37 OddanchatramDharapuram-Avinashipalayam work, the pre-GST Estimated Project Cost(EPC) of the bid document was Rs.714.35 Cr. This EPC includes Construction Cost, Cost Escalation, Pre Operative Expenses/ IE Fees, Interest During Construction for the concessionaire's investment, Financing Cost for the loan.

7. Similarly, the Estimated Project Cost of PPP 03:SH 39 Tirunelveli-Sengottai_Kollam road was Rs.412.89 Cr.

8. Based on the World Bank's suggestion, the upper Annuity limit was arrived at Rs.90 Cr for PPP 02 Package and at Rs.50 Cr for PPP 03 package.

9. For PPP 02 package, the Annuity quote of M/s RCCL-KMC (JV) was Rs.75.33 Cr.

10. For PPP 03 package, the Annuity quote of M/s SPKANDCO-KMC (JV) was Rs.43.35 Cr.

As far as the two Annuity Contracts under question are concerned, one of the contracts PPP03:SH 39-Tirunelveli-Sengottai-Kollam road has been cancelled due to failure on the part of the concessionaire to furnish the performance security on time.

In these PPP Projects, the bid amount that was asked to be quoted was for annuity and not the total project cost. The amount of 1520 Crores for PPP 02 project has been arrived by the petitioner by just simply adding the construction grant and the 16 installments of semi annuity over a period 10 years. Simple addition will not give the cost in Net Present Value (NPV) terms. Calculating the cost in NPV terms would show the tentative amount that needs to be spent on this project as on date. Mere addition of annuities and construction grant is a wrong way of arriving at the cost. No inflation or increase in the project cost has happened while awarding the contract. In fact, it has been awarded contract at a lower annuity quote when compared to the World Bank's annuity quote of 90 Crores. Without knowing the nuances of PPP contracting, the petitioner is making false, baseless, frivolous and misconceived allegations.