Guidelines for determination of tariff & SBD for ... - Ministry of Power

Standard PPA for … [Insert ‘medium’ or ‘long’, as applicable] term power procurement under Case -1
Thereafter, this Agreement may be terminated by either ………………. [Insert
“Procurer” / “Procurers (jointly)”, as applicable] or the Seller by giving a Termination
Notice of at least seven (7) days, in writing to the other Party. The termination of the
Agreement, shall take effect upon the expiry of the last date of the said notice period.
3.4.5 In case of inability of the Procurer(s) to perform the activities specified in Article 3.2
within the time period specified therein, otherwise than for the reasons directly
attributable to the Seller or Force Majeure event, the time period for the fulfillment of
condition subsequent by the Procurer(s) as mentioned in Article 3.2 would be extended
for an additional time period which may be required by the Procurer(s) to complete the
activities mentioned in Article 3.2, subject to a maximum additional time period of three
(3) months. Thereafter, this Agreement may be terminated by the Seller at its option, by
giving a Termination Notice of at least seven (7) days, in writing to the Procurer(s). If the
Seller elects to terminate this Agreement, the Procurer(s) shall, within a period of thirty
(30) days of termination by the Seller, release the Contract Performance Guarantee of the
Seller forthwith. In addition, the Procurer(s) shall pay to the Seller as liquidated damages,
a sum equivalent to ten percent (10%) of the value of the Contract Performance
Guarantee.
3.4.6 No Tariff adjustment shall be allowed on account of any extension of time arising under
any of the sub-articles of Article 3.4;
Provided that due to the provisions of Articles 3.4.3, 3.4.4 and 3.4.5, any increase in the
time period for completion of conditions subsequent mentioned under Article 3.1, shall
also lead to an equal extension in the Scheduled Delivery Date or the Revised Scheduled
Delivery Date, as the case may be.
3.5 Contract Performance Guarantee
3.5.1 The Performance Guarantee furnished under this Agreement shall be for guaranteeing the
commencement and continuity of the supply of power up to the Contracted Capacity
within the time specified in this Agreement.
3.5.2 The failure on the part of the Seller to furnish and maintain the Contract Performance
Guarantee shall be a material breach of the term of this Agreement on the part of the
Seller.
3.5.3 If the Seller fails to commence supply of power on the respective Revised Scheduled
Delivery Date(s) or the Scheduled Delivery Date specified in this Agreement, subject to
conditions mentioned in Article 4.7.1, …… [Insert “the Procurer” or “the Procurer(s)
jointly”] shall have the right to encash the Contract Performance Guarantee and
appropriate in their favour as liquidated damages an amount specified in Article 4.8.1,
without prejudice to the other rights of the Procurer(s) under this Agreement.
3.6 [To be inserted only in case of long term procurement] Reduction in the amount of
Contract Performance Guarantee
3.6.1 On successful supply of power as per the terms of this Agreement for a duration of
………………….. (………) [Insert “five (5)” OR the number of years equal to half of
the Term of the Agreement, whichever is smaller] years from the Delivery Date and
provided that there has been no Seller Event of Default in the immediately preceeding
…….[Insert name of Procurer(s)] 28