India - Third Telecommunications Project : Credit 0153 - Development Credit Agreement - Conformed

CREDIT NUMBER / , 3 IN Development Credit Agreement (Third Telecommunications Projcct) BETWEEN INDIA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JUNE W , 1969 AGREEMENT, dated J uinie , I969, butween I N )i.\, act- ing by its President (hereinafter called the Boorrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (lereinter called the Association). WaEuEAS (A) the Borrower has reluested Hhe Associa- tion to make a credit to it il ln aggregu princial amoniit equivalellf 1to $27,500,000 to :issislI e Iorrowr in linicing the Project described in Schedule 2 to this Agreenient; (B) the Borrower has also requested the Iliernatioial Bank for Reconstruction aid i)evelopmeit (tereinater called the Bank) to provide additional assistance tovards financing the Project; (C) by an agrecenmit of even late herewi h beween the Borrower and the Bank (hereinafter rVferIed to as the Loan Agreement), the Bank is agreeing to provide such assistance (hereinafter called tle Loan) ill a 1 tggregate principal amount equivaleit to $27,500,000; and (D) the Association has agreed, on the basis of the foregoing, to make a credit to the Borrower ul,o the terms and conditions hereinafter set forth; Now THEREFUORE the parties hereto hereby agrue as follows: ARTICLE I General Conditions; Definitions HArI 0N 1. THl )1liVS 10 t11his )OVelopm1i0ientI (C'ritlit ditiois Applicable to) lelomiet i redi A-reeilents of the Association, dated Januaiy :1, 1969, with the samle 4 forcc and efTeet as if tey were filv t forth leeini, subject, however, to the followinlg iodification thereof (said General Coiditiois A pplicable to I)eveiopnent (redit Agreenilts of te \ssoeintion, o vs so tidi(lied, Ieig hevre- inafter called tie General (knditions) Paragrapi 5 of Section 2.01 is innetded to raed as follows: "5. The tr ' rw ' n India, actig by its President." Su-rloN 1.02. Whterever llsed in tls i)evelopitet !Cr.dit Agreenlient, unless Ihe cotfext oterwnise retires, the sev- eral terns defined in lte e Cera n oWdiiotns have Ilbe re- spetiveY mteanings I herein sel for lh liantd lite fuollIog ntbli - tionauil 1vrii1s ltave te io.lowing menings: (IL) "P&T" mewanls the( Po tild Teerp Dvpart- men of the Borrower; (b) "Bratteh" inwan- [lhe Tvle-ronoujlllnIcaIioln.' Bratteh of P1&T 1; and ()"Rts" inevans rpe ill the( øir'n oftll rmur ARTICLE II The Credit SEW"rTWN 2.01. TheV \-,oeinfliot lgrees l() led In ie I lorroiwer, oin lhte lermsi andte sndIIiin ini this lle4velop m11etl Credit Agreemitent sel ori lr rd,rrvd fø, att iminin live hiudred thoutsand ulla;rs (j32,*s00,(X0). S't-rios 2.02. (a) Tiv \s.ocifltiøn siall >piett a Credil Acontt1t1 on its b>oks il ltt tae f1 it w rrwer and shall eredit to sllehl \eouti the ainnuo tilhe Credit. (b) The amiotint of tihe Credit Inly be witdrawt frøni tit Cretdit Acconuis iprvidedi ilt, atnd si ()ee o Ihe righ1s of nne lltio aal sinspullsion scl orh in, Hiis Doevelop1 mnent, Credi( Agaen nd ifkeorac withi 1the allot-a tion of the procceds of the (redit set forthi in Sehedule 1 to this Agreelinent, as sielh alloentio slial le inified hfr i f illiv (o (iim, |nir1snl lt 1( e ffic o id n (d slich svjiled tll or by agreellien1 betwetn the bvor11\ ei anld li(e Asso- ciation. SisurloiN 2.0,3. The sorrower shall ble etitled to witlh- draw from the ( Credit Aeoint in respeel o' Ihe reasolble cost of goods or services required for the l>roject and to be finaiced under tIiis )evelopment ('redit ;\greemet: (i) sich amouits as shall have been paid (or, if the Association siall so agree, balie required to eet[ paymills lo be Jile) for goolds or ser iCes inillded in ('ategory l of 1le allovamii of fi~ proceeds of tll ('redit referred 1o iii setioi 2.02 of> this Agreeiet ; 1ind1 (1i) hegillivalenci efllowin perecilial-Ie. (or1 smnIh tlhr per(etages nas1h 1 ssio'ia in mv friiti miie ben..1 paid (or, if 1lit' ,\s.u'ialio n h l ro agret, sliall be refired to inel payllwii s lo be bo iuu ) for goods or services 1 inte in le f(lllowing Cafe- gories of the allovati of (t proceeds of tie Credit referred to in Seetion 2.02 of' this Agreement 0Catego(ry l(a)- 2O, category 11( b)-;iy Catc~g01ry1()-5 SECTioN 2.04. (a) No wiffhdrawals fiom lit Creklil At counit, shall be iade IIIIder C(vat'gorv l of the li allocation of tie proceeds of ihe (!re( itrefrred to in e ion 2.02 of iis Agirtiei on aceoiiii (od pymets in Iie eitrniy of (t Borrower, or for goods prtnied in, oi services SIpplied fro , 1h territorics (d t he 1.row r 61 (b) It is hereby ag8eed, prmuii to Seltionl 5.01 of ffie Oeneiral Conditions, tiat witdrawals from 1lie Credit Ae- conit under Category 11 of tfie allovatioi of the proceeds of the Credit referredi to iii Sectioll 2.02 of tiis Agreemei may be milde on nevonlilt ol IyIIiillIs made Irior to lie date of this Agreeniit bid o or after ApIril 1, 1969. SIGTIoN 2.05. Tlie vmiireiy of the f liiitdi<l Kimngoil ol, (Dreat Ifr-itain ind Noiritierii 11relnild is lierby speci l i the purposes of Section 4.02 of the Geieral Conditions. SECTION 2.06. The Boirrower sinil pay to tlie Associa- tion a service charge at the rate of three-fourtlis of oe per cent (3/4 of 1%) per annum on the principal aniount of the Credit withdrawni and outstaing f roim time to time. SECTION 2.07. Service charges shall be paykble semi- annually on June 15 and December 15 in each year. SECTION 2.08. The Dorrower siall reiay the priil amount of the Credit withdrawii from the Credit Accouint in semi-annual installienits payable on eaelh June 15 aid December 15, coiinueinlg .Junie 15, 1979 and ending De- cember 15, 2018, each installmeit to and iiicludiiig the in- stallment payable on December 15, 1988 to be onle-ialf of one per cent (½ of 1%) of such principal amount, and cach installment thereafter to be one and one-Italf per cent (1½%) of such principal amiount. ARTIOLE III Use of Proceeds of the Credit SEXTioN 3.01. Tlie orrower siall aply tile vioeds of the Credit in accordance with tlie provisions of this Development Credit Agreeimeit to exoieditures on the Project, described in Selidule 2 to Iiis Agreemei. SECTIoN 3.02. Exeejd as tie Assoeatioi shal otierwise agree, the goods andi< serivices to be Iiiatived out of 1lhe su,mi 7 proceeds of the Credit sliall be procitred in accordance with the procedures set forith in Scled,le :3 to tiis Agreetent. SECTION 3.03. Utnttl Heompletioln (k l,e iProjeet. the Borrower shall cause all goods and services financ1ed out of the proceeds of the ('iredit to be ised exclu8isively in carry- ing out the Projeet, except as the Associationl may otheir. wise agree. ARTICLE IV Particular Covenants SECTION 4.01. The Borrower shall carry out the IProject with duc diligence and elliciency and in conformity with sound administrative, financial, enlgiineering- and public utility practices, and sliall provid', proijtly aS teeded, the ftuuids, facilities, services and utfher resonrces required for the piurpose. Hi:roN 4.02. (a) pl rei foi tiot Iimc lin tie by the Association, thie lorrower shll proffipfly 111r1is1h or caise to be fnished to 1he Association hlie plans, specifi- estions an(I work se,edles fot ie Projet a11(1 iate- r.1ti ltiodiliea.tionis sufsquietl in de lhereint, in stii de- tail as the Association shall regnest. (b) The morower shall: (i) minlain or enisP lo be iaiintaiied e('li rocords e go ( ,,1inv flie goods 1nd1( services financed onf of Ihe tooeeds of he i Credit, to dis- close the use thereof iii th1e Projeci, to record the progress of th1e Projecf (inl'uding ihe s ihereof) anSd to releet in accordance with cosi,ssletly ttinitinued sotund accotllting practices the operations and. financial condition witi respect to the Project of the agency ori ageciici.s of the Borrower responsible for the carrying out of the Project or for the operation of the 1eleconnnonicatis facilifies of tlje Bor- rower, or any part Ilereol; (ii) etable th1 Associati's represn1tatives o inspec1 thte Projvel, stehu goods, the Brancli, the india Tllephon 1 .lidustrics Liited, the 8 Iliitdistani Cables ljiinihed, the ffi iiidis Telepriii-r Linúted, aty ageney or mgeiieis ol (Iie 1orrower respoi- sible for te carrying out, of tihe Project. or lie operatiol of, the teleconuulieations facilities of the Borrower to whieh the Program referred to in Schedule 2 to his Agreemeit relates, or any part thecreof, anid iny re-tvlt reonis aid doeuments; and (iii) furntish or cause to be fritiiished to the Association all sucli infornation -is Ithe Association shall reasonably request conceriting [t e peiditure of the proceeds of the Credit, the Project, suich goods and services, and the operations and financial condition with respect to the Project of the agency or ugencies of the Býorrower re- sponsible for the carrying (kf tile Projet i flite openra- tion of the telecommiunicatiois facilitics of tho Borrower to which the Program referred to in Schedule 2 to this Agreemeiint relates, or any part thereof. SECTION 4.03. (a) The Borrower and Iie Association shall cooperate fully to nssire thiat te iurpose of tile Credit will be accomplished. To t It end, eacit ol t Ihtem shall furnish to the other all such infornuttion as it sitall reason- ably request vith regard to the general stat uis of' the Credit. On the part of the Borrower, sutch infornmation shalil inelude information with respect to finacial nd eiconomie condi- tions in tit teritories of tiv Borrower and Ole inteIni- tional balance of paymeits positioll (f Ihe Borrower. (b) The Borrower and the Associatioi shall from tite to time exchange vinws th11rough theilr represet1aties wi regard to matters relatin g-> the pri p of' 11h (ie (,fredit, and the maintteinnice of the service thiereof. The Borrower shall promptly inform the Association of amy comdifion whieb interferos witll, or. ftrealens to i1terfre with, ilie accomiui,shmeni t of' tho i pur1iposes of tit e edi or 1le ntait- tenance of the service thereof. (e) Tle orrower shl1l affor al! reisob oppornit11y for ;ceredited representatives f iie Association to visit 9 anly part of tle territorieus of the Boriower for purposes related to the Credit. SEOTmIN 4.04. Exeept as Uite AssoiaLio sliall otlierwise agree, the Borrower uindertake to iisire or cause to be insured the imported goods fiiianced out of tihe ioeeeds of the Ciodit againlst marile, trasi and oe Im 11za1rIs in- cideit to the acquisitionl, tianlsportatiol amnd d[elivery tIere- of to tle place of ise or installation, amd for such insur- ance ny inudemnuit~y shall be payable in a eiurrencey freely usable by the Borrower to replae or repal such goods. SECTION 4.05. The Borrower shall operate and mtintain its teleconimunicatioins facilities, and from i iie to time make all necessary renewals ad repairs thiereof, all in accordance with sound publie utility and engineearig pc- tices. SECTIoN 4.06. Except as the Association shll otherwise agree, the Borrower shall (atise P&T to coiitiinue tlie flinanl- cial reorganization of the BraIChl inl aCCordanCe with the provisions of and the time schedule set forth in Schedule 4 to this Agreement. SECTIO< 4.07. Except as fte Association shall otherwise agree, the Borrower shall cause P&T to retain, prior to Deeerlb 31, 199, co)(s(ulu)t, 1e4et>le o a o( termls aund condiitions satisfato)ry to lte Association, to assist P&T in establishing ai cffeel ive stock couit rol system. l 81-.'.tO)N 4.08. Tie orroer shanll hve Ibe e-lluerinl accounlts of tle raunc, beginiig with tihose for the liseal year ending March 31, 1969, audited annutally by the Comp- troller and Auditor Genieral of tlie Borrowver. Tlhie Bor- rower shall trausmit to the Assoiatio1: (i) certified copiCs of the audited statements (balauce sheet anid related statement or arnings and ex- 10 penses) and cigned copies of tlie auditors report-s relating to botli the communercial accounts and the appropriation accounts of the I tranci prompt,ly after sueli stateniits are avaiLable; and (ii) beginning witli the accounts for the fiseal year end- ing March 31, 1971, provisional comtmercial atcouits (balance sheet ad related statement of eanings and expeises) of tite Branh no liter than fiur mlonlths, af U h l s ol, tHw 1ieu ea o wich1 thuy relate. SECTION 4.09. Tie orrower shall cotsult te Asso,ia- tion about any plan fot a major reorganization of tihe Branch sufliciently in advanev of tite moption of such plan for the Association to have adequate oppOrtunity to comi- ment thtereoni. S'CTioN 4.10. The lorower shll etnsre tht funtds genlcratod by the Brh11.1c1 mr pied lo tHw opeations of the Iostal Branth of P&T -or to vy se other Uiui lte operations of the Branh and tite carrying out of the Proj- ect onily if all funlds euied for. the c.rrying ot. of the Project are available to te Branch. SECTION 4.11. (a) Except as tlie Association, sliall other- wise agree, the Borrower slill est ablisit aud mintai tariffis for teleconlieltilsi i srvies, and shall tate all othier action which may be necessary or appropriate, ,o as to provide tevenes silicientl to prodiev att nnial r de o returt f ntol less tun iti on 1he v ølie o' the net lixed assets in operationl of ite lratiel, comtip[uted il tecordate with the provisions of Sehedule 5 to tis Agreemet. (b) Whenlever .ipproprnine, aml inl nty case not, 1ess re- (uenitly tinn every five years, ithe Borrowetr sitall review, 0r cause to be reviewed, tlie value of lite net flixed assets in 11 operation of th Brauneli to determiine wbether bause of substantial ehanges, in curieiit prieus djustments to suli values are required, and sliall notify the Association of the result of ay stich r'view. A propriate adjustnients to the value of Lit' he t fixed aseSL in oitatioil of ithe LIIramich for purposes of paragraph (a) of this ection shall theii be iade to the extent tgreed between the Borrower and the Association. At the same time, the mtitimiut anitual rate of return specified in paragraph (a) of tiis Seetion niid tlhe 1m1i1inilui average rafe of depreiation for purposes of comllputing eosts speeied in pairgraph 2(a)(ii) of 8eted- ule 5 to this Agreeme will also be reviewed by thle Borrower and the Assochation in order to deternine whether any adjustments are ealled for. SECTIoN 4.12. Tlle principal of, and services charges oi, the Credit shall be paid withoiit deduction for, and free froml, Lily 1a1xes, and fre from ll restritins, in- posed under the laws of tlie Borrower or laws in effect in its territories. SECTION 4.13. The Develonnent (Jredit Ågreenmt sliall be free from aiy taxes tiat siall be imiposed under the laws of the Borrower or laws in effeet inl its territorles on or in connection with Lite exeutioni, delivery or re jgistrationi thereof. ARTIOLE V Remedies of the Association S.1ri.3 5.01.I f iN eveitt speellied in Sevtioli 7.01 of the General (3onditionus shall occur and sliall contine for the period, if any, thereini set forth, tien at any subsequent time during the continuance thereof, tlie Associatioi, at its option, imay y notie to hlie Borrower del re the principal of the Credif ten otlsta ding o be dtue aud payable km- imiedia ely together \wit te se rvice ehrges tereon an 111poll ally HIil <ieriiii ol sneil i>i'ineiiui, togetihl u'iLil 12 such charges, shall becoie due and payable ininiediately, anything in this Development Credit Agreement to the Con- trary notwithstanding. ARTICLE VI Effective Date; Termination SECTION 6.01. The date of August 1, 1969 is hereby spec- fied for the purposes of 8uctioni 10.04 of tHie Oenerd Con- ditions. SECTION 6.02. The obligations of the Borrower under Sections 4.02, 4,05, 4.08, 4.09 and 4.11 of this Agreement shall terminate on the date on which this Development Credit Agreement shall terminate or on a date 30 years after the date of this Development Credit Agreement, whichever shall be the earlier. ARTICLE VII IVIisce, cous UCotN 7.01. The (losHi. de shall be I)ot-ombl 1972 or such other date a it be agred betwUeL. Borrower and the Associatic SECTION 7.02. A Secretarx A(1vern1meIt of India in the Ministry of Finance is da ;,nated as representative of the Borrower for the )UripoSes of ection 9.03 of the 0oneral Conditions. SECTION 7.03. The following addresses are specified for the purposes of Section 9.01 of the (kt-eral (Joiditiols: For the Borrower: The Secretary to the Government of India Ministry of Finance Departmnit of Econonmic Affairs Now Delhi, India 13 Alturiative address for cables: Ecofairs New Delhi For the Association: International Developinent Associatioll 1818 11, Street, N.W. W ashington, D. 0. 20433 United States of America Alte,rngäivo address for cabl,s: Indevas Washington, D. C. IN WINEss WIIEo, the parties hereto, acting throtugh their representatives thereunt6 duly authorized, have caused this Development Credit Agreement to be signed in their respective names and to be delivered in the District of Columbia, United States of Ankerica, gs of the day and year first above written. INDIA By Authohized Representative INTERNAT'IONAL JVELoPMEN'' AMSOCIATION By Veec Prese<at 14 SCHEDULE 1 Allocation of Proceeds of Credit and Loan Ainounts Expressed Category in Dollar Equivalent I. Goods to be imported by P&T (a) Cable and wire 11,300000 (b) Equipment for long distance systems and training and re- search equipment 8,300,000 (c) Materials and components for manufacture in the P&T Work- shops 3,100,000 II. Goods to be pirclased froin the Government teleconununicatious factories (a) Telephones, switching and transmission equipient, manu- factured by Indian Telephone Industries Limited 11,500,000 (b) Teleprinters, manufactured by Hindustan Telepirinters Limited 800,000 (c) Cable and wire, miiaifactured by Hindustan Cables Limited29000,000 Total 55,000,000 Allocation of the Proceeds of the Credit 1. The amount of the Credit shall be withdrawn from the Credit Account as provided under A rticle I1 of this De- velopment Credit Agreement and shall be applied to ex- penditures under Category II and, to the extent that with- drawals and commitments in respect of expenditures under Category I exceed the amount of the Loan, to expenditures under Category I. Allocation of the Proceeds of the Loan 2. The, amount of tie Lom iiu a , be \iili(liL\wi frin thle fjoanl Account1 as provieldi l er .ril 1o h , Agre'V1mVnt alld sh1a11l.(.a pid o e p n itrs uoe ('ategory I aud, to tHe e..\enIt that wi l rwa'l tnd . o - mlitinlenuts in respet of expenditures udter ('ategory 11 eXCee( tle allioltitt ol fite ('rdit, lo explelditltre's tindvier ('ategoryv li. Reallocation Upon Change in Cost Estimates of te Hubcategories in ('altegories i ai i shali dereIase, thev 1111o1111 of lhev C(' d lI lill-o l l n e 1,11d n1o løllngerl r<irdfor, suhkbneoywilb lonel a Hw reipest of tie(, Borrowtr, to (dy [f te otlier 8ubcategorils int Categories I and ii, subjec, howevet, to tihe require- iettts for cottitgeties, ts lrt iitel by fhi .\s8[lcatt, iin respect of' the ('ost of te i tetits in tih[e oter Huibcate- gories. 1G SCHEDULE 2 Description of the Project Thev Project. is t Ii 1hree year iseie , ,\pril 1, W!.G!) throluglI Mlarch 31, 1972, of I&'l"s Prograi for the cx- pansion of the Branch's telecomniiiieations facilities in- cluded in the Borrower's Fourth Five-Year Plan (ending March 31, 1974). The Proje-t has a capifal expendi ue target of approximnately Rs 2,700 iillion anI coiprises Ile following main items: 1. Expalnsionl of local telephonie exhngs to inlecrease tile net cajacity by approximavi)tely :25,000 Iines of automllat.ie equipment and 20,000 lines of maniual equipimnt, together with the necessary cables and siuscriber equipmeniit to add approximately 300,000 installations. 2. Expansion of the long distance net work by approxi- iately 12,000 interurban speech chaniels oge,her vith the necessary switching and terininating equipmient. 3. Expalsionl of the telex 11Iwork bv pproxim ly 5,000 subscriber installations together with I he associated switth- ing and longr-distance channlels; n(d exansion and imoderni- ZLLion of t.ile publ le gra servicv. 4. Expansion and modernization ol training and r(~ scarch facilities appropriate to the increasing scop( complexity of P&T's operations. 17 SCHEDULE 3 Procurement Procedures 1. Thev goods and services included in ('ory I n the allocationl of tle prøoceds of tHe ('rediI set forlh il chiedIe i of this Agreement (exfe ølfor Ihose itenis in i8 ii approprialv) sall be pieured ou bhe basis (d inlter niationlal comlpctitiv,e bidding ill accordance,( wýith the( (ilddeic- linevs forl-rcrmn 111de(r Worb,,mk Imnus and lID\ Creldits, published by In i ank ili 1!%ii s. 2. With respect to cont raets for pr tt ront>t of goods alnd svrvivvs r,fvrrvd t) ill plrlgraph)1 l tol bw prølld thel asi of inlternat 1ion lem p t 1v,bd in ndeti ae to cost in excess of $100,000 (-quiivaleit: (a) iivitatioins to bid, spvcifictdion,s, conditiois ol eon- traet, all other 11t1e dlocuents ild e Imetlod and places of advetisig ill be siibiiiitted to tihe Association for s review and approval prior to thie isslIal(e of invitationls lo bid. (b) After bids have been received an analzedI, the anialysis ol tihe bids, ;I thte propos.ls for awards, together with te reasons for sulh proposals, vill be sibmitted to tlie \ss(iation for it. s review and ap- proval prior to ite H rrow(,r's nmkin- an awt øl, .ont rac1(t ør issulillg. h,fy l . øl, ib-1ni. (c) If the 1ialcontract is to dier substantially fromu thle termiis anld colnditions co i i ll i the es eciv documiets approvel by h Association under pari-- graphls (a) and (b) above, tie l of thie proposedl changes vill be subiuitted to tihe Å\ssociation for its review and approval prior fo Ilith vxveition (f steh coitracl. (d) As soon as a lhfir of inIvn! has been-;suvd or a contael as ben eente,ffiopy herof w\ill b)( "(11lø 1,1h14 \ ora on 18. 3. With respect to contraets for procuremeit of goods and services referred to in ragra 1I estimated 1 vosI $100,00 equivalent or less, c>pies of 1he invitation to bid, the bid analysis and evaluation, the coutraet or order and any other documents the Association may request will be sent to the Association promptly afer te ex1cvtion o h1 le respective contract and p rio r to lie stibmlission to the Asso- ciation of the first application for withdrawal of funds fromil the Credit Account in respect of such contract. 4. The goods and services included in the following Categories of the allocation of the iroceeds of the Credit set forth in Schedule 1 of' this Agreeen shall be prociured from the Indian companies indicated in accordance with the usual procedures of the Braich: !ategory Il (a) -i ndia Tmlephon i ds ries lIiimiled CateL(gorly ll(b)-llindustun(,11 TeernesLaimited (Jat.egory l ()--1 Iii inistlna ( 41dbles i iiliteld Skiehl 1iniani companies will con tne to pron1re iiportedt goods for the production of the goods inieluded in such Categories on the basis of iiteriatioial competitive bid- ding wherever appropriate. '9 SCHEDULE 4 Financial Reorganization of the Branch Theo finlancianl reoranizaltionl of tHw lr'Vh,refrrvd to in 8eeltion 4.0(i ofI bii A \green 1ellt, hIall be entried oiill ii lccorthiieu witi tie fo lg i iv- me.lwdill,e 1. Tlh transfer of tli 1eeonlilting ifiinetionl For the Brnch frollit e iiler inal ,\inliior HwIerl of Il hv Ilorrower to lT' will be onipled by l ransflring l hfllowing accouintiiig units to P&T by not later tliati the dates indi- cated: Se ptc ebe r 1, 1!)Uu Kerala Circle Orissa Circle Mysore Circle Bangalore Telephone District Madhya Pradesh Circle ATllhedaibad Telep e District Gujerat Circle nýomtibay Telephone Distriet Technical & Developinent Circle Se ptember 1, 1970 West Belngal Circle 1itt,a L1'rdesh Cilei Maharashtra Circle CaleultaTephnDirit Bihar Circle D>elhi TDlephn ie Distriel Assam Circle l'ooiia Teiph eDisl.iv 2. \VegitiiIig witil4ie ieniils for Ii-eat eai I9(;8, 19(9, annual accouints for the Branich shall1 be prep a red and siub- ailiii ed [o I> tifiieilel I (ogei l \\ Iil a reconiilinig ¡l e- ellt) lnot oilly ill tile 'orin of l(e ppropriatioi necoglits but also in the fort of eoniereIal accoiits on an accrual basis with ia stateieni of eatrtiig ad ex'penes and n baLineV sor. le1r the purpoSl. of Ihese staIenenIs, I ixvd asss in opeation hll Ie val ll in etrrdane witl the provis~iios of Heein 4.11(b) of Is .\4reuennuIl. budgeto foecasts on ali eernal basis will be prepared and subiintted (lo Parliinel logetIer witl lte present appro- priation loreast s. 20 4. Beginning iot lat er lhaii A pril I, 1971, the clearing of accoullts betweenl thie I1iii li ili ølher (ioverinien1t (le- partilueilts will be by di ret rnde i1l ng of bills and settle- mIlent. 5. P&T, will proInpfly vstablishl n1 inllvrnl aludif sys1ve1n for tlie Branell. In e olh uf the accolutin-g uii1s tranisferred to P&T an internal audit group sliall be flctioning within one year after the transfer of tle unit. 21 SCHEDULE 5 Coiputation of Annual Rate of keturn 1. Thev anisal ra,tte of ret n ihe value of o te not fixøtl assets' itio of il i- i ui·, ni'i ø w lrriH (5o ill e ti n -1.1 l of t isý .\ nmn·, hn |b o p l ).b\ n-a in lg i ihe ne ' p i ng iHita 11r,i h'nli11 lilsi i.till 111111ietllions s Is >1r teit' ' air il i siin lo tHew r ge ot ilt ( ofi n t liw d i ll-e o i ;li tii lit' bi ni ling liam(il illl ll i il t h i l i u ii mul. 2. Vis' pusrposes ofi' his s'mnpii ti on:s ( -) it op ra'in g in is ' ' ,w mi.m le diff*rei' ' m1u1nien.tiolns s v ,e xvluding- tha1 pørtioln of bshemewihrbtesosr v t erne ini futu.re y'e, i's, an d u (i i ) ;slil opss'r liig if lis' lsldngi ntion iseri es, sis~i ss s. 'si inebisn's nn trair is i s p on r s e?s, ''i's to 'qualiei n 11i1i i ( 1 prii gs'i n I ll i l Hw p depc'ik b h11v1 .1( i i ;l- in;lli p r d, a1iii' i. ei in accordn']ie', \\ il i I ( i . li'b) t'* f ti \ rei me bt, but .h nteresv andovhr ha onl dIvbl '11nt l n tHw iro e o liu in to P'&T; '11d (b) "valu of (- 1*1\4wd a1s il tinl p i to '' h l n lHit g-. \'tilite gd, .n1(11 1 el, l e n n ili | (b) of this Areet accounits are iconisistent w\ithi thle above provisions.