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
13 ARTICLE 13: ASSIGNMENTS AND CHARGES
13.1 Assignments
13.1.1 This Agreement shall be binding upon, and inure to the benefit of the Parties and their
respective successors and permitted assigns. This Agreement shall not be assigned by any
Party other than by mutual consent between the Parties to be evidenced in writing:
Provided that, such consent shall not be withheld if the Procurer(s) seeks to transfer to
any transferee all of its rights and obligations under this Agreement; and
(a) such transferee is either the owner or operator of all or substantially all of the
distribution system of such Procurer(s) and /or such transferee is a successor
entity of the Procurer(s); and
(b) this Agreement and the other RFP Documents shall continue to remain valid and
binding on such successor.
13.1.2 [Insert in case the Seller chooses the option of Lender’s substitution rights] Seller shall
be entitled to assign its rights and obligations under this Agreement in favor of the
Selectee duly appointed pursuant to the terms of Schedule 12 of this Agreement.
13.2 Permitted Charges
13.2.1 Neither Party shall create or permit to subsist any encumbrance over all or any of its
rights and benefits under this Agreement.
13.2.2 However, the Seller may create any encumbrance over all or part of the Receivables,
Payment Mechanism or the RFP Documents in favour of the Lenders or the Lender’s
Representative on their behalf, as security for:
(a) amounts payable under the Financing Agreements; and
(b) any other amounts agreed by the Parties,
Provided that:
I the Lenders or the Lender’s Representative on their behalf shall have entered into
the Financing Agreements and agreed upon in writing to the provisions of
Schedule 12 of this Agreement; and
II any encumbrances granted by the Seller in accordance with this Article 13.2.2
shall contain provisions pursuant to which the Lenders or the Lender’s
Representative on their behalf agrees unconditionally with the Seller acting for
itself and as trustee of the Procurer(s) to release from such encumbrances all of
the right, title and interest to additional compensation so as to enable the
Procurer(s) to claim its right of subrogation. For the purposes of this Article,
additional compensation shall mean the compensation that the Seller is entitled,
whether actually or contingently, to receive from the Procurer(s) as well as
compensated by any person other than the Procurer(s) for the same event.
…….[Insert name of Procurer(s)] 76