AGREEMENT ON THE CANADA-INDIA COLOMBO PLAN KUNDAH
HYDRO-ELECTRIC POWER PROJECT
New Delhi, 29 December 1956
The Government of India and the Government of Canada, desiring to conclude an agreement concerning the Canadian Government's contribution
under the Colombo Plan, have agreed as follows
As part of its contribution under the Colombo Plan the Government of Canada will assist in financing the Kundah Hydro-Electric project
in the State of Madras.
The contribution of the Government of Canada will not exceed $ 20 million and within this amount will comprise, in accordance with
the terms of the accompanying Annex and Appendix 1, the external costs of engineering services, specified construction equipment,
hydraulic electrical and mechanical equipment for the power plant, materials and equipment for transmission lines and the external
cost of specified installation and or erection at the site. Where practicable and subject to agreement between the two governments
some of the required equipment may be manufactured in India from materials provided by Canada. Counterpart funds resulting from other
Canadian Colombo Plan aid to India, in the amount to be agreed between the two Governments, may be used to finance local costs at
The Government of India will provide the site for the power plant and transmission lines and will also be responsible for the construction
of the dams and power houses, transmission lines and ancillary works, and for the supply of specific auxiliary equipment and services
as set out in the Annex. In the event that some of the required equipment specified in Article II is manufactured in India from materials
provided by Canada the cost of fabrication or manufacture will be met by the Government of India. The Government of India will provide
all mechanical, electrical, administrative and other services and facilities required at the site. In accordance with normal Colombo
Plan practice, the Government of India will be responsible for providing local labour and materials which are essential for the performance
of the services specified in the Annex. The Government of India, following past practices in relation to Colombo Plan shipments from
Canada, will arrange for shipment and bear freight charges and will arrange for and assume the cost of insurance on any equipment
and materials destined for the project, or will bear the cost of replacement in the event of loss.
The distribution of the various costs between the Governments of Canada and India will be in accordance with understanding reached
between representatives of the the two Governments, which is recorded in the Annex.
The execution and supervision of the project will be in accordance with the procedures described in the Annex.
The Annex to this Agreement may be amended from time to time by mutual agreement in ways not inconsistent with the Agreement by letters
exchanged between the High Commissioner for Canada in India and the appropriate Department of the Government of India.
This Agreement takes the place of all previous Agreements and understandings on this matter between the two Governments or between
officials of the two Governments.
IN WITNESS WHEREOF the undersigned, being duly authorised by their respective Governments, have signed the present Agreement and have
affixed thereto their seals. DONE in duplicate at New Delhi this 29th day of December, 1956, in the English language.
On behalf of the Government of India
(Sd.) T.T. KRISHNAMACHARI
Minister for National Health and Government of India Welfare
On behalf of the Government of Canada
(Sd.) PAUL MARTIN
Minister for Finance, Government of Canada
Government of Madras
(Sd.) Escow REID
Minister for Industries and High Commissioner
1. The Government of Canada and the Government of India agree that their respective responsibilities in the joint financing and construction
of the Kundah Project are as hereinafter set out.
2. The Government of India will make such arrangements with the Government of Madras as are necessary for the implementation of the
terms of this agreement.
CONSULTING ENGINEERING SERVICES
3. The Government of Canada will provide the services of a Canadian Consulting Engineer hereinafter referred to as the Consulting
Engineer, who, in addition to such other functions as are specified in this Annex, will on the basis of the specifications submitted
by the Government of India prepare the final specifications in a form which will enable the Government of Canada to call for tenders.
For this purpose he will be free to make with the concurrence of the appropriate Indian authorities, such changes in the specification
submitted by the Government of India as he may consider necessary.
4. The Consulting Engineer will also evaluate the tenders when received and, after consultation with the Government of India (who
will depute their Engineers to Canada for this purpose), advise the Government of Canada on the purchase of the equipment which the
Government of Canada is to supply.
5. The Consulting Engineer will be responsible for co-ordination between the different manufacturers and suppliers to ensure that
the equipment is correctly supplied without duplication or omission.
6. The Consulting Engineer will be responsible for supplying all foundation, excavation and layout drawings for the power houses,
penstocks, valves and transformers to facilitate the erection of the equipment when received.
7. The Consulting Engineer will supervise at site the erection of all equipment supplied by the Government of Canada.
8. The Consulting Engineer will coordinate the inspection of the equipment during manufacture and also arrange for initial testing
before shipment to India. He will also be responsible for final testing of equipment after erection and before handing over the project
to the Government of India.
9. The Consulting Engineer will maintain one or more qualified engineers at the site in India, from the time the erection of the equipment
supplied by the Government of Canada is due to commence, and these engineers shall be responsible for supervising the work of manufacturers'
representatives at the site and for the proper control of all such work.
10. In order that the Consulting Engineer and the Government of India shall be in the closest possible touch with each other during
the period of manufacture and in order that a close liaison shall be maintained in all phases of the work, the Government of India
will appoint a resident engineer to be located at the headquarters in Canada of the Consulting Engineer, and to act as liaison officer
between the Consulting Engineer and the Government of India as long as such liaison shall mutually be thought to be necessary.
CIVIL ENGINEERING WORKS
11. Civil Engineering Works, hereinafter called Civil Works, for the purpose of this Agreement will include the construction of three
dams at Emerald, Avalanche and Upper Bhavani; three connecting tunnels of the following sizes
(a) 14,600 ft., 10' diameter, M 12,000 ft., 10' 9" diameter, (c) 8,450 ft., 8' 6" diameter; two power house buildings; approach
roads; camps; buildings (temporary and permanent); and works of a similar nature.
12. All these Civil Works will be completed under the responsibility and for the account of the Government of India, but the Government
of Canada will provide the components mentioned in paragraph 14 of this Annex.
13. In order to satisfy the Government of Canada as to the soundness and practicability of design, the Government of India will supply
the Consulting Engineer with all such drawings and other technical data as are considered necessary to enable the Consulting Engineer
to arrive at a proper appraisal of the proposed plans for the design of the Civil Works. The Consulting Engineer will send representatives
to the work site at regular intervals to be mutually agreed upon for the purpose of viewing the Civil Works and reporting to the
Government of Canada on their progress.
14. The components for the Civil Works to be supplied by the Government of Canada as per specifications approved by the Consulting
Engineer with the concurrence of the engineers deputed by the Government of India for this purpose, will be as follows : (a) gates,
screens and valves, for the dams; (b) low pressure pipe lines, penstocks, meters and valves for power houses Numbers I & II;
(c) steel structurals, reinforcing steel and accessories for buildings for power houses Number I & II; (d) construction equipment
as listed in Appendix I.
15. With regard to the supply of penstocks and the low pressure - pipelines, the welding will be done in Canada except such welding
as will have to be done at the site. For this purpose, the Consulting Engineer will arrange that the suppliers send qualified welders
to the work site; their work will be under the supervision of the manufacturers' representatives and carried out to the satisfaction
of the Consulting Engineer and the Government of India. Penstocks and low pressure pipelines will be tested according to standard
practice by the manufactures' representatives and to the satisfaction of the Consulting Engineer and of the Government of India.
16. The Government of India will be responsible for supplying and paying necessary skilled and unskilled personnel to help the welders
in this work but the responsibility for directing the work rests with the manufacturers and the Consulting Engineer.
17. The Government of India will construct the foundations and place the pipes in position upon them in accordance with the foundation
drawings that will be supplied by the Consulting Engineer.
POWER HOUSES AND POWER HOUSE EQUIPMENT
18. The layout drawings of the two power houses supplied by the Government of India to the Consulting Engineer will be revised wherever
necessary to accommodate the equipment which the Government of Canada will supply, such revisions to the design of the power houses
will be made with the concurrence of the Government of India.
19. The power house equipment to be supplied by the Government of Canada as per specifications approved by the Consulting Engineer
with the concurrence of the engineers deputed by the Government of India for this purpose, will be as follows (a) turbines, inlet
valves and accessories; (b) generators, exciters, voltage regulators and accessories; (c) switchgear; (d) power house auxiliaries,
including fire protection equipments. (e) step-up transformers and accessories; (f) outdoor switchgear and structures; (g) power
and control cables; (h) handling equipment, cranes and accessories.
SUB-STATION AND TRANSMISSION REQUIREMENTS
20. Subject to the limitation on the total Canadian contribution specified in Article II of the Agreement the Government of Canada
will supply the following sub-station and transmission equipment: (a) towers or steel for towers; (b) tower line hardware;
(c) insulators; (d) conductors; (e) ground cables and other accessories; (f) carrier current equipment for communication and relaying-,
(g) sub-station equipment.
21. The quantities of all the above items will be agreed upon between the Government of India and the Consulting Engineer and confirmed
by the Government of Canada. The Government of India will be responsible for the erection and commissioning of the transmission lines
ADMINISTRATIVE FACILITIES AND PROCEDURES
22. The Government of India will facilitate the prompt clearance and expeditious transhipment through the Indian Customs without cost
to the Government of Canada for import, customs and other duties and taxes of all necessary materials and equipment supplied by the
Government of Canada including engineering instruments and equipment. This provision will cover bona fide personal and household
effects (including one motor car per family) of all Non-Indian personnel whose salaries and travelling expenses to and from India
are paid out of the Canadian contribution provided : (a) that these effects are brought in on first arrival as accompanied or unaccompanied
baggage; and (b) that these effects other than those entitled to free entry under the ordinary baggage rules are liable to payment
of duties, etc. if they are sold or otherwise disposed of in India.
23. The Government of India will ensure that the Indian Customs' Inspection does not disturb the protective packing of the electrical
equipment and/or material. If complete or detailed inspection is necessary, arrangements may be made for such inspection to be done
at the site.
24. The Government of India will make available to the Canadian manufacturers' representatives and also to the Consulting Engineers'
representatives at the site free furnished accommodation, official transport and hospital and medical services on the scale available
to the officials of the Government of Madras.
25. The Government of India will keep the Consulting Engineer and such Canadian personnel in India connected with the project informed
of the local laws and regulations that may affect their work and hold the Consulting Engineer and such Canadian personnel harmless
from the consequences of any act connected with the work on the project which is not inherently immoral, criminal or fraudulent on
26. The Government of India will provide, as promptly as possible (a) all permits, licences, etc., necessary to enable the Consulting
Engineer and his representatives, the Canadian manufacturers' representatives and such other Canadian personnel to carry out their
respective responsibilities connected with the project; (b) export and exit permits, where necessary, for the return of any of the
materials, equipment, effects or personnel provided by the Government of Canada.
27. The Government of India will pay Indian income-tax and other taxes on payments made to non-Indian firms and personnel out of the
Canadian contribution, if any such taxes be payable.
28. The Government of India will deal with the settling, without cost, to such non-Indian firm or personnel paid out of the Canadian
contribution, of any claims which may be made against any such firm or employee with respect to liability for : (a) injury or death
of any person arising from the work; (b) injury or death to any person during the performance of his duties; and (c) property damage.
This provision will not relieve any person from liability for any act inherently immoral, criminal or fraudulent. If at any time
during the period of participation of Canada and India in the Colombo Plan the Government of India proposes to transfer any of the
goods provided by the Canadian Government under this Agreement, the Government of India will inform the Government of Canada of the
terms and conditions of the proposed transfer and take into account any views expressed by the Government of Canada regarding these
terms and conditions.
CONSTRUCTION EQUIPMENT REQUIRED
KUNDAH HYDRO-ELECTRIC POWER PROJECT