APPENDIX 24 PROFORMA HYPOTHETIICATION DEED FOR LOAN

AGAINST THE PLANT & EQUIPMENT.

The indenture made this ………….. day of ……….. 19……….. between M/S……… having its registered Office at ……… (hereinafter called “the Contract” which expression shall unless repugnant to the context be deemed to its successors and assigns) of the ONE PART and Coal India Limited/Subsidiary Company having its Registered Office at ………….. (hereinafter called “the Company” which expression shall unless repugnant to the context be deemed to its successors and assigns) of the OTHER PART.

WHEREAS the Contractor has applied to the Company for a loan of Rs………….. only for plant and equipment described in the Schedule hereto for the work and brought to site in accordance with the terms and conditions of the Contract being No………. dated ……….. entered into between the Contractor and the Company for the work of ………..

AND WHEREAS one of the conditions of the said Contract that the Contractor will hypothecate the said plant and equipment as a security for due repayment of the amount lent by the Company.

AND WHEREAS the Contractor has purchased the said plant and equipment described in the Schedule hereto and the same are free from all encumbrances.

NOW THIS INDENTURE witnessed that in pursuance of the said agreement and in consideration of the premises the Contractor doth hereby agree to repay to the Company the said sum of Rs…….. lent by the Company with interest thereon at the rate of …………..percentage per annum and the Contractor doth agree by that such repayable amount may be recovered by the Company my making deductions in the manner as provided in the contract from the claims made by the Contractor against the Company for on account payment and in further pursuance of this agreement the Contractor doth hereby assign and hypothecate the plant and equipment as described in the Schedule hereto.

The Contractor doth hereby declare that the said plant and machinery have been purchased by the Contractor outright and the Contractor is the absolute owner of the said plant and equipment and the same have not been pledged or pawned anywhere else and shall not be pledged or pawned or hypothecated it so long as the money remains due to the Company.

The Contractor further agrees that if the said loan of Rs……… is not repaid by the Contractor or recovered in the manner described above by the ……….. of 19…………. Due to any reason whatsoever or the Contractor dealing with the said plant and equipment or any part thereof in any manner whatsoever or the Contractor becomes insolvent or bankrupt or the Contractor is to be wound up or make any with its creditors or the Contractor commits breach of any of the terms and conditions or covenants herein contained or if any of the said plant and equipment or any other property whatsoever belonging to the Contractor has been sold or attached for a period not less than 21 days in execution of decree of any court for payment of money or the whole of sum of Rs………… or said part thereof as may then remain or unrecoverable together with interest thereon shall forthwith become payable and the Company shall be entitled to recover the said sum from the Contractor or from his successor and assigns and it is further agreed that in the event of happening of any of the aforesaid circumstances the Company shall be entitled to take possession of the said plant and equipment and sell the said plant and equipment or any of them either by op public auction or private contract any may out of the sale proceeds retain the balance of the said loan and interest thereon remaining unpaid and unrecovered and all costs, charges and expenses and payments incurred or made in maintaining defending or protecting the rights of the Company hereunder and shall pay over the surplus, if any, to the contractor.

The Company shall at all times during the continuance of security and at the expenses of the Contractor ensured and keep ensured the plant and equipment described in the Schedule hereto for the full value thereof in the joint names of the Contractor and the Company with an Insurance Company to be approved by the Company against the risk of loss or damage from whatever cause arising other than excepted risk. During the continuance of the security the Contractor shall pay all premium and sums of money necessary for keeping such insurance valid and the Insurance Policy and the receipt in original for premium paid shall be deposited with the Company by the Contractor. The Contractor shall assign all its rights, title and interest in the policy to the Company.

The Contractor shall not in any way cause any damage or suffer or permit the said plant and equipment to be damaged in any way so long as this security is not completely discharged and in the event of any damage or loss happening to the said plant and equipment or any part thereof from whatever cause other than the excepted risk. The Contractor shall forthwith have the sum prepared or replaced as the case may be or arrange for repayment of the entire amount recovered or to be recovered from the Insurance Company towards the repayment of the said loan of Rs………..

Upon repayment or recovery in full of the amount secured under this Indenture the said plant and equipment secured hereunder shall stand released from Hypothecation but without prejudice to any other rights of the /Company in terms of the provisions of the said contract.

SCHEDULE ABOVE REFERRED TO.

In witness whereof the parties hereto have been these presents on the date and year first above written.

Signed and delivered by

Signed by for and on behalf and

On behalf of the Contractor of CIL/Subsidiary Company

In the presence of : 1) 1 )

In the presence of : 2 ) 2 )

APPENDIX-25