PowerPurchaseAgreement

Paschimanchal
Vidyut Vitran Nigam Ltd.
(ooProcurer1'o)

PoorvanchalVidyut Vitran Nigam Ltd.

(ooProcurer 2t')

MadhyanchalVidyut Vitran Nigarn Ltd.

(ooProcurer3tt)

and

Dakshinanchal Vidyut Vitran Nigam Ltd.

('oProcurer4oo)

Bajaj Energy Private Limited

Unit - Kundarkhi (Gonda)
("Seller'o)

(As Approved by UPERC)

Bajaj (2 X 45 MW) Kundarkhi PageI of 128

 TABLE OF'CONTENTS

1 . ARTICLE 1' DEFINITIONS AND INTERPRETATION

t ARTICLE 2 : TERM OF'AGREEMENT

3 ARTICLE 3 : COI{DITIONS SUBSEQUENTTO BE SATISFIED BY TI{E SELLER AND

THE PROCURERS...,...,...,.,.,............ ...........................,.....,..,.29
4 ARTICLE 4 : DEVELOPMENTOF THE PROJECT..,.,..............................,,,.,...,,.....................33

5 ARTICLE 5 : CONSTRUCTION

6 ARTICLE6: SYNCHRONISATION, COMMISSIONING AND COMMERCIAL OPERATION

7
8
9
10
ll

t2 ARTICLE 12: FORCE MAJEURE

13 ARTICLE 13 : CIIANGE IN LAW 72

l4 ARTICLd 14 : EVENTS OF DEFAULT AND TERMINATION

t5 ARTICLE 15 : LIABILITY A}ID II\DEMNIFICATION 79

16 ARTICLE 16 : ASSIGNMENTSAND CHARGDS

l7 ARTICLE l7 : GOYERIUNG LAW AND DISPUTE RESOLUTION,......................------.,...84

IE
I
IA

3
4
5
6
7
8 SCHEDULE S : DETAILS OF INTERCONNECTION POINT AND FACILITIES................
I 12

Bajaj (2 X 45 MW) Kundarkhi Page2 of 128

9 SCHEDULE 9: DETAILS OF POWER EYACUATION ARRANGEMENTS TO BE
pRovlDED BY UPPTCL.................... 113

10 SCITEDULE10 : REPRESENTATIONAND WARRANTIES rt4

ll SCHEDULE II : NOT USED...

12 SCHEDULE 12 : LIST OF ARTICLES.........,........ .....,.,,117

13 SCHEDULE 13 : ALLOCATED CONTRACTED CAPACITY 118

t4 SCHEDULE 14 : CAPITAL STRUCTIJRESCHEDULE.................,, ,..,.,.,.119

15 SCHEDULEI5 | FORMAT OF PERFORMANCEGUARANTEE,,.,.,.,...,.,.,....,.,..,,.,..............120

r6 SCHEDULE 16 : NOT U 121

t7 SCHEDULE 17 : SUBSTITUTION RIGHTS OF THE LENDERS t22

18 ANNEXURE -1 ; UPERC OR-DERDATED 18-11-2010
ALONGWITH CORRIGENDUM

DATED,07.12.2010:

Bajaj (2 X 45 MW) Kundarkhi

ffif stvr urrAR PRADEsH
2010l'
This Agreementis made on the 10thtlay of Decemberr
t
ln ilo4)c+lo
3{l.iYi
I
Between
g
(1) PaschimanchalVidyut Vitran Nigam Ltd, a company incorporatedin India and
regi$eredunder the CompaniesAct, 1956,having its registeredoffice at Victoria Park
Meeput-250001 (Hereinafter shall,gnless
referredto as "Procurer 1", which expression
,"p,'1lnuntto the context or meaning thereof, be deemed to include their respective
,u..Brrorr, nomineesandpermittedassigns);and
(2) g Poorvanchal vittyut vitran Nigam Ltd, a company incorporatedin India and
underthe CompaniesAct, 1956,havingits resistered ofEceat Vidyut Nagar,P'O'
registerec{
(rProcurer 2", which expressionshall,
refenedto as
DLw, varanasi-z2)|}rc (HOreinafter
6
unle$srepugnantto the context or meaningthereof be deemed to include their respective
nomineesandpennittedassigns);and
succtssors,
(3) Madhyanchal vidyut vitran Nigam Ltd, a company incorporatedin India and
underthe CompaniesAct, 1956,havingits registered office al 4l{' GokhaleMarg,
resis;tered
Lucl&row-226001(Hereinafterrefenedto as'(Procurer 3", which expressionshall,unless

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Pase4 of 128
Bajaj(2X 4s

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E Lsokrow.
repugnant to the context or meaning thereof, be deemed to include their respective
nomineesandpermifledassigns);and
successors,
(4) Dakshinanchalvidyut vitran Nigam Ltd, a compaty incorporatedin India and
under.theCompaniesAct,1956,havingits registeredoffice at Urja Bhawan.NH2,
registered
Sikandr4Agra (Hereinafter referred to as "Procurer 4", which expression shall, unless
repugnant to the context or meaning thereof, be deemed to include their lespective
nomineesand permittedassigns)
successors,
THROUGH
UTTAR PRADESH POWER CORPORATION LIMITED ("LPPCL") a company
incorporatedin India and registeredunderthe CompanigsAct, 1956,having its registered
office at ShaktiBhawan, 14,Ashok Marg, I-ucknow,U.P duly authorisedby qachof,the
aboveProcurersto enterinto this Agreementon their behalf

(The.,procurerl,,,..Procurer2" ,"Procurer3" and" Procurer4" are(hereinaftercollectivety

referredto asthe "Procurers" and individually as a "Procurer")

And

Bajaj Energy Private Limited (the "Seller"), a company incorporated-in India_and

,egisi"t"d ,riaer the CompaniesAct, 1956, having its registered9f!ce at 2noFloor,Bajaj
Biawan JamnaLal Bajaj Marg,NarimanPoint,Mumbai-400021and Corporateoffice at B-
l0 Sector3,Noida,Gautam BudhNagar(UP)

'?rocurer4" and or "Procurers"and

(eachof the ,.Procurer1., *Proatrer2' "Procurer3",
..Seller"areindividually refened as "Party" and collectively to asthe "Parties')

Whereas:
A) The Govemmentof Uttar Pradesh("GoUP") has arurouncediEnergy Policy
2009, for the promotion of power generation,within uttar Pradesh and Bajaj
HindusthanLtd. ("BHL"), a companyengagedin the businessof manufacture,
production,processingor saleof sugax,molasses,molassesbasedindustrialalcohol'
organicmanUreand power and having its manufacturingunits locatedin the various
dishicts of Uttar Pradeshand presently having CogenerationPower Plants at its
various SugarMills in U.P. and supplyrngpower to the StateGrid under respective
power pwchaseAgreements,being desirousto set up additional generationcapacity
underthe MOU route as IndependentPowet Producer(IPP) in accordancewith Para
5,2,2oftheEnergyPolicy,2009(asamended)issuedbyDepartmentofEnergy'
Go.vt. of uttar Pradesh (GouP) entered inlo a Memolandum of understanding
("MoU") with the Governmentof UP on 14thJanuary2010 for settingup of the FIVE
(5) Thermal Power Plants each of 80 Mw capacily as Independent Power

Bajaj(2 X a5 MW) Kundarkli Page5 of 128

U. f;-f .Y:. Lt
Shakti tsr I'iao Btt'!.
LBcLnoE.
 Producing(IPPs)Units [,,Projects" or "Generating Plants"] on the land availableat
their SugarMills:

B. Subsequently, the installedcapacityof eachofthe GeneratingPlanfshasbeenrevised

by the Company fiom 80 MW as contemplatedin the MOUs to 90 MW and
accordingly a ftesh Mou dated22-04-2010was enteredinto betweenBHL and the
GoUPfor the below mentionedgeneratingplants :

Location Installed Capacity(MW)

BarKiera(Pilibhi0 90 MW
Khambharkhera(LakhirnpU!X\eril- 90MW
Maqsudapur(ShahjahanPlf) 90MW
Kundarkhi (Gonda) 90I/tW
Utraula (Balrampur) 90MW

C, UPPCL, as the sole state NominatedAgency, has also agreedvide Memorandumof

o/o
Understandingdated 3l't December2009,ln purchaseat least 50 power from the
'uP Electricity
company for a period of 25 yearsat the price to be determinedby
Regulatory Commission' ("UPERC") and further with the mutual consent of the
o/0
partiesto this Agreement,also agreefor purchaseof power beyond50 on the same
terms and conditions.BHL has finally offered 90 % of saleableenergyto UPPCL at
the price to be determinedby UPERC andUPPCL hasagreedto purchasethe same;

D. BHL has, in pursuanceof and in accordancewith the aforesaidMous, proceeded

with the settingup of the aforesaidThermal Power Plants. However,subsequently,
pursuantto clause 12 of tJreaforesaidMoU dated 22-04-2010' BHL hasassignedthe
aforesaid pfojects to its subsidiarynamely Bajaj Energy Private Limited (the
Company)herein and the samehas been duly approvedby the GoUP vide GO No'
618dated 11.06.2010.

E. uppcl andthe company havemutually agreedto this PowerPurchaseAgreementin

respect of the company,s Generating Plant being set up as aforesaid at
KUNDARKHI District GONDA, which hasbeenduly approvedby IJPERC vide its
Orderdated18.11.2010,copyofwhich is annexedheretoasAnnexure-l
NOW, THEREFORE,in considerationof the foregoing and respectivecovenantsand
ug....*ntr set forth in this PPA and other consideration,the receipt, sufficiency and
;"d.t oi which is hereby acknowledged,and intending to be legally bound
hereby,the Partiesagreeasfollows:
ARTICLE.I: DEF'INITIONS AJ\D INTERPRETATION

1.1 Definitions
The termsusedin this Agreement,unlessas definedbelow or repugnantto the context,shall
have the samemeaning as assignedto them by the Electricity Act, 2003 and the rules or
regulationsframed there under, including those issued/framedby Appropriate Commission
(asdefinedhereunder),as amendedor re-enactedfiom time to time.

The following terms when used in this Agreementshall have the respectivemeanings,as
specifiedbelow:

"Act" or meansthe Elechicity Act 2003 or any amendmentsmadeto

"Electricity Act the sameor any succeedingenactnentthereof;
2003"

"AgreedForm" means, in relation to any document, the form of the said

documentmost recently agreedto by the Partiesand initialled
by themfor identification;

"Agteementi'or "Power meansthis documentincluding its recitals and Schedules;

PurchaseAgreement"or
'PPA"

" AFpropriate meansthe Uttar PradeshElectricity Regulatory Commission

Commission" constituted under the Electricity Act, 2003.-or such other
succeedingauthority or commission as may be notified by
Govemmentof UP from time to time;
"Allocated Contracted meansportion of the ContractedCapacityallocatedto eachof
Capacity'' the Procurersas provided in Schedule13 hereof, subject to
adjustrnentasper the termsof this Agreement;

"Auxiliary , in relation to a period means,the quantum of energy

Consumption"or
NormativeAuxiliary
Consumptionor AUX
consumedby auxiliary equipmentof the generatingstation
and transformerlosseswithin the generatingstationand shall
be expressedas a percentageof the sum of gross energy
generatedat the generatorterminals of all the Units of the
generatingstation.

"AvailabilityBased Shall mean all the regulationscontainedin the Uttar Pradesh

Tariff' or "ABTI' or Electricity RegulatoryCommission(Terms and Conditionsof
"UPERCRegulations" GenerationTariff) Regularions, 2009,as amendedor revised
ftom time to time, to the €xtentappliedasper the tems of this
Agreement;

Shaliti iir:r,va:r Ext[.

Lucknow.
"Availability Factor" or in relation to a thermal generating station for any period
.,Availability', meansthe averageof the daily averageDeclaredCapacities
" (DCs) for all the days during that period expressedas a
percentageof the Installed Capacttyof the generatingstation
minus Normative Auxiliary Consumptionin MW, and shall
be computedin accordaniewith the following formulat

N
=
Availability (%) 10000x ! DCr / { N x IC x (100-AU()
l%
i=1

Where,
IC : Installed Capacity of the Unit in
MW;
DCi : av€tage Declared Capacity for
the i'n day of the period in MW
N = Number of days during the
period;and
AIIX' = Normative Auxiliary Consumptionas
a percentageof grossgeneration

"Available Capacity" means in each Settlement Period Power Station Declared

Capacity (as is grossed up for Normative Auxiliary
Consumption)in that SettelmentPeriod;

"Bill DisputeNotice" meansthe noticeissuedby a Partyraisinga Disputeregarding

a Monthly Bill or a SupplementaryBill issuedby the other
Party;

Day''
"Business meanswith respectto Seller and each Procurer,a day other
than Sunday or a statutory holiday, on which the banks
remain open for businessin the State of Uttar Pradeshin
which the concemedProcurer'sregisteredoffice is located;

"CapacityCharge"or shallhavemeaningascribedtheretoin Schedule7;

"CapacityCharges"or
"FixedCharge"

"CapacityNotice" shall havethe meaningascribedtheretounderABT or the Grid

Code;
"Capital Cost" shall meanthe total expenditureactually incurred by Seller'
in settingup and constructingthe Power Station,as approved
by AppropriateCommission;

(2x 4sMw)

Shairti 1,1.iira;13.{ts.
Luchsow"
'Capital Shuctwe shall meansourcesof financeusedto financethe Capital Cost
Schedule' asprovided in the FinancingAgreements;

"CentralTransmission shall havethe meaningascribedtheretoin the Electricity Act,

Utility" or "CTU" 2003;

"CERC" means the Central Electricity RegulatoryCommission,as

definedin the ElectricityAct, 2003,or its successors;

"Changein Law" shall havethe meaningascribedtheretoin Article I 3. I .1;

"CommercialOperation means, in relation to Unit, the date one day after the date
Date"or "COD" when eachofthe Procurersrcceivesa Final Test Certificateof
the IndependentEngineer as per the provisions of Article
6.3.1 and in relation to tle Power Station shall meanthe date
by which such-FinalTest Certificateas per Article 6.3.1are
receivedby the Procurersfor all the Units;

"Commissioning"or means,in relation to a Unit,.that the Unit or in relation to the

."Commissioned"with Power Station, all the Units of the Power Station that have
its grammatical passedthe Commissioning Testssuccessfully;
variations

"CommissioningTests" meanstheTestsprovidedin Schedule5 herein;

or "Commissioning
Tesf'

Unit"
"Commissioned meansthe Unit in respectof which COD hasoccurred;

!'Construition meansone or more main contractors,appointedby the Seller

Contractor/s" to design, engineer, supply, construct and commission the
Project;

"ConstructionPeriod" meansthe period from (and including) the date upon which
the Construction Contractor is instructed or required to
commencework under the ConstructionContract up to (but
not including)the CommercialOperationDateof the Unit in
relation to a Unit and of all the Units in relation to the Power
Statioh;

"ConsultationPeiiod" meansthe period, commencingfrom the date of issue of a

Seller Preliminary Default Notice or a Procurer Preliminary
Default Notice as provided in Article 14 of this Agreement,

. ..! atr,':_
..:-.1
,, -'.i.i:,,'r
c E:(P. P,}A.
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ii', dvli:
Sha:iti il.t :iwau EKt!.
tuckro$.
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"'rl
 for consultation between the Parties to mitigate the
consequenceof the relevant event having regard to all the
circumstances;

"Contract Year" meansthe period beginningon tle Effective Date (as defined
hereunder)and endingon the immediatelysucceedingMarch
31 and thereaftereach period of 12 months beginningon
April 1 and endingon March 31 provided that :

(i) in the financial year in which ScheduledCOD of the first

Unit would have occurred,a Contract Year shall end on the
dateimmediatelybeforethe ScheduledCOD of the first Unit
and a new Contract Year shall begin once again from the
ScheduledCommercialOperationDate of the first Unit and
end on immediately succeedingMarch 31 and provided
further that

(ii) the last ContractYear of this Agreementshall end on the

lastday of theterm of this Agreement;

Providedthat for the purposeof payment,the tariff will be as

determinedby the UPERCfor the applicableContractYear;

"ContractedCapacity" meansninety percent(90%) of InstalledCapacity.

*Control Centre"or meansthe RLDC or SLDC or suchotherload controlcentre

"Nodal Agency" designatedby the Procurersfrom time to time through which
the Procurersshall issueDispatchInstructionsto the Sellerfor
thePowerStaiion;

"Cunent Rate(s)of shall mean the market rate(s) of foreign exchangenot

Exchange" exceedingthe highest State Bank of India (SBI) TT selling
rates applicable to any tiability of Seller in respect of any
installment of the principal or any interest on any foreign
Debt or where applicablein respectof any retum on foreign
equity as on the dateon which such installmentor as the case
may be suchretum on foreign equity becomesdue;

"Day" Shall mean the 24 hour period beginning at 00:00 hours

(IST);
"Date of Financial shall mean the date upon which the Financing Agreements
Closing"or havebeenexecutedandthe sameis approvedby the Board of
" InvestmentApproval Directorsof the Seller;
Date"

Bajaj(2 X 45MW) Page10of 128

cE, {9
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Shak'ri3r :L,'ranExtt.
Luc kno6to
"Debt Service" means the amounts which are due under the Financing
Agreementsby the Sellerto the Lenders,expressedin Rupees
(with all amounts denominated in currencies other than
Rupeesbeing sonvertedto Rupeesat the Current Rate(s)of
Exchange;

"DeclaredCapacity" In relation to a Unit or the Power Station at any time means

the net capacity of the Unit or the Power Station at the
relevantlime (expressedin MW at the IntercorurectionPoint)
as declaredby the Seller in accordancewith the Grid Code
and dispatching proceduresas per the Availability Based
Tariff;

"Delivery Point " or meansthe points of delivery specified in Schedule8 for

"IntercgnnectionPoint" fulfilling the obligation of the Seller to deliver the Electrical
Outputto the Procurers;

"Direct Non-Natural shallhavethemeaningascribedtheretoin Article 12.3(iiXl);

ForceMajeureEvent"
"Dispute" means any dispute or difference of any kind between a
Procurerand the Selleror betweenthe Procurersfiointly) and
the Seller,in connectionwith or arising out of this Agreement
including any issue on the interpretation and scope of the
termsof this Agreementasprovidedin Article 17;

"DispatchInstructionl' means any instruction issued by the Procurers through the

respectiveSLDC and RLDC to the Seller, in accordancewith
applicableGrid Codeandthis Agreement;

"Due Date" means the thirtieth (3Om)day after a Monthly Bill or a

SupplementaryBill is received ard duly acknowledgedby
any Procurer (or, if such day is not a Business Day, the
immediately succeedingBusinessDay) by which date such
bill is payableby the saidProcurer;
"Effective Date" meansthe dateof signingof this Agreementby last of all the
Parties;
"Electricity L4ws" meansthe Electricity Act, 2003 and the nrles and regulations
made thereunderfrom time to time along with amendments
thereto and replacements thereof and any other Law
pertaining to electricity including regulations framed by the
AppropriateCommission;

"Electrical Output" meansthe net electrical output of the Power Station at the

X 45 MW) Kundarkhi Page1l of128

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 Delivery Point asexpressedin kWh;
"Emergency'' means a condition or situation that, in.the opinion of the
Procurersor RLDC or SLDC or the agency responsiblefor
operating and maintaining the Interconnection and
TransmissionFacilities or the transmissioncompany,as the
casemay be, posesa significantthreatto the Procurer'sor the
said agency's or transmissioncompany's ability to r4aintain
safe, adequate and continuous electricity supply to its
custome(soor seriously urdangers the security of persons,
plantor equipment;
"EnergyCharges"or Shall have the meaningascribedto this term under Schedule
"Variable Charges"

"Expiry Date'; meansthe 25ft anniversaryof the CommercialOperationDate

of the Power Station. For the avoidanceof doubt, in casethe
COD of the PowerStationoccurson June 1, 2013,then the
25tharuriversaryof the COD of the Powei Station shall occur
on June1, 2038,i.e. in the ContractYear 2038-39;

"Final Test Certificate" Means

a) a certificate of the IndependentEngineer certifying
and acceptingthe resultsof a CommissioningTest/sin
accordancewith Artrcle6.3.7 of this Agreement;or
b) a certificateofthe IndependentEngineercertifting the
result of a Repeat PerformanceTests in accordance
with Article 8.2.1of this Agreement;

"FinancialClosure"or Means the execution of all the Financing Agreements

"FinancialClose" required for the Project and firlfilment of conditions
precedentsand waiver, if any, of any. of the conditions
precedentfor the initial draw down of fundsthere under;

"FinancingAgreements" means all the loan agreements,notes, indentures, security

agreenents,letters of credit and other documentsrelating to
the financing of the Project bn or before the COD of the
Power Station, as may be amended,modified, refinancedor
replacedfrom time to time, but without in anyway increasing
therein;
the liabilitiesof theProcurers

rForceMajeure" : shall havethe meaningascribedtheretoin Article 12'3;

"ForcedOutage" shallhavethe meaningascdbedtheretoin Grid Code;

Page12
EajajQ X a5 MW) Kundarkhi

ctr- {p.
V. P,,f .
ShaktiEtrrwenEx["
Lupkqoiy,
"Fuel" or'?rimary moans primary fuel used to generate electricity namely,
Fuel" domesticcoaland/orimporredcoal;

"Fuel Supply meansthe agreement(s)enteredinto betweenthe Seller and

Agreements" the Fuel Supplier for the purchase, transportation and
handling of the Fuel, requiredfor the operationof the Power
Station. In case the transportation of the Fuel is not the
responsibility ofthe Fuel Supplier,the term shall also include
tho separate agreementbetween the Seller and the Fuel
Transporterfor the transportationof Fuel in addition to the
agreementbetweenthe Seller and the Fuel Supplier for the
supplyof the Fuel;

"Functional meansthe technicalrequirementsand parametersdescribedin

Specifications" Schedule4 of this Agreementand as provided in Grid Code
relating to the operation, maintenance and dispatch of
Unit(s);

"FuelSupplier" Northem Coaliields Ltd or any other coal company as pel

coal allocation by Ministry of Coal, GoI including any
domestic/internationalcoal supplier(s) and/or traders within
or outsideIndia;

"GOr ShallmeanGovernment of the Republicof India;

"GOUP" Shall meanthe Govemmentof the Stateof Uttar Pradesh;
'lGrid Code"or "IEGC" meansany set of regulationsor codesissuedby Appropriate
Commissionas amendedand revised from time to time and
legally binding on the Sellers' aad Procurers' goveming the
operation of the Grid System or any succeeding set of
regulationsor code;

"Grid System" means the Interconnectionand TransmissionFacilities and

any other transmissionor distribution facilities tlrough wh-ich
the Procurers supply electricity to their customers or the
transmissioncompanytransmitseloctricity to the procurers;

"Gross .Station Heat meansthe heat energyinput in kCal requiredto generateon€

Rateor GHR' kWh of electricalenergyat generatotterminals;

"IndependentEngineer" means an independentconsulting engineeringfirm or group

appointedby the Sel1erin consultationwith the UPPCL/Lead
pro.*"t six (6) months prior to ScheduledCOD of the first
Unit, to carry out the functionsin accordancewith Arlicle 4,7'1

Bajaj(2 X 45Mw) Page13of 128

I T tr-, tr
St.r.,i
;, ,., J.L"
 and Article 6, Article 12 andArticle 8 herein.

Providedthat separateIndepgndentEngineermay be appointed

for the purposesof Article 4.7.1, Article 6, Article 12 and
Article 8;

Provided fur*rer that the separateIndependentEngineermay

be appointedfor eachfinancial year for the purposesof Article
8:

and in suchcase,suchIndependentengineershall be appointed

at leastninety (90) daysprior to the beginning of the financial
year;

"Indirect Non-Natural Shall havethe meaningascribedtheretoin Article 12.3(ii)Q).

ForceMajeureEvent"
ttlndian Govemmental means the GOI, Govemmentof Uttar Pradeshand any
Instrumentality" ministry or, deparftnentor board ot agency other regulatory
or quasi-judicialauthoritycontrolledby GOI or Govemment
of States where the Procurersand Project are located and
includesthe AppropriateCommission;

"Infirm Powertt shallhavethe meaningascribedtheretoin Article 11.1;

"Initial Consents" Shall mear the consentslisted in Schedule2;
"Initial Performance shall havethe meaningasffibed theretoin Article 6.3.3of this
RetestPeriod" Agreement;
"InstalledCapacity'' meansthe summationof the nameplate capacities of all the
Units of the generating Station or the capacity of the
generatingstation (reckoned at the generator terminals) as
approvedby the Commissiontime to time, provided that for
the pqrposeof this Agreementin relation to the first Unit and,
secondUnit Installed Capacrtymeans 45 MW mted gross
nameplate capacltyeachand in relation to the Power Station
as a whole means90 MW rated grossnirmeplate capacity,or
such capacities as may be determined in accordancewith
Article6.3.4or Article 6.3.5of this Agreement;

"Interconnection Means the facilities on the Procurers' side of the

Facilities"or InterconnectionPoinJ for receiving and metering Elecnical
"Interconnectionand Output in accordancewith this Agreement and which shall
TransmissionFacilities" include, without limitatioq all other transmissionlines and

Bajaj (2 X 45 MW) Kmdarkhi Page14of 128

SLui ii rl-,,lriir Bxtt.

l.urklcw.
 associatedequipment,transformersand associatedequipment,
relay and switching equipmentand protective devices,safety
equipment and, subject to Article 9, the Metering System
requiredfor the Project.

The InterconnectionFacilities also include the facilities for

receiving power at the Delivery Point where the transmission
line from the PowerStationSwitchyardendis injecting power
into the transmission network (including the dedicated
transmission .line connecting the Power Station with the
transmission/CTUnetwork) ;

'(Invoice"or "Bi1l" means either a Monthly Tariff Invoice, a Supplementary

Invoice or a ProcurerInvoice;
"Late Payment shallhavethe meaningascribedtheretoin Article 11'3.4;
Surcharge"
uLawu means, in relation to this Agreement, all laws including
Electricity Laws in force in India and any statute,ordinance,
regulation, notification or code, ru1e,or any interpretationof
any of them by an Indian GovernmentalInstrumentality and
having force of law and shall fi.rther include all applicable
rules, regulations, orders, notifications by an Indian
Govemmental Instrumentality pursuant to or under any of
them and shall include all rules, regulations, decisions and
ordersof the AppropriateCommission;
"LeadProcurer" shallhavethemeaningascribedtheretoin Article 2.5;

"Lenders" means the banks, other financial institutions, multilateral

agencies,RBI registered non banking financial companies'
mutual funds and agents or trustees of debenture/ bond
holders, including tleir successorsand assignees,who have
agreedas on or befoie COD of the Power Station to provide
the Seller with the senior debt financing described in t}te
Capital Structure Schedule, and any successor banks or
financial institutions to whom their interests under t}re
FinancingAgreementsmay be transferredor assigned:

Providedtha! suchassignmentor transfershall not relieve the

Sellerof its obligationsto the Procurersunderthis Ageement
in any mannerand shall also doesnot leadto an increasein the
liability of any of the Procurers;

"Letter of Credit" or shallhavethemeaningascribedtheretoin A(icle I 1.4.1;

(2 X 45 MW) Kundarkhi

€
tt
"LIC"
'Meters" or "Metering Means metersused for accountingand billing of electricity in
System" accordancewith CentralElectricity Authority (Installation and
Operationsof Meters)Regulations, 2006,ftid CodeandABT,
asamendedfrom time to time;

"MaintenanceOutage" shall have the meaning as ascribed to this term as per the
provisionsofthe Grid Code;
,MCR' means grossPower Station or Unit Maximirm Continuous
Rating asdefinedin the Grid Code;

"Minimum Offtake meansguaranteedofftake of sixty five per cent (650/")of the

Guarantee" total Contracted Capacity for all Procurers taken together
duringa ContractYear.

'Monthu Means a period of thirty (30) days from (and excluding) the
dateofthe event,whereapplicable,elsea calendarmonth;

"Monthly Billi' or Means a monthly invoice comprising Capacity Charges

"Monthly Invoice" (applicableafter COD of the first unit) and Energy Charges,
including incentiveandpenalty,asper Schedule7 hereof;
"MVA" shallmeanmega-voltampere.
1'MW" shallmeanmegawatt.
'Notice to Proceed"or Meansthe dateon which the Seller shall firlfill the conditionas
..NTP" containedin Article 3.1.2 (iii) of this Agreementin accordance
with the provisionsof this Agreement
'Natwal ForceMajeure Shall havethe meaningascribedtheretoin Article 12'3(i).
Event"
" Non-NaturalForce Shallhavethe meaningascribedtheretoin Article 12.3(ii).
MajeureEvenf'
'T.{ormative Means equalto eighty five per cent (85%) Availabilily or the
Availability" or availability at the Delivery Point on ContractYear basis.
"TargetAvailability"

"OperatingPeriod" in relation to the Unit meansthe period from its COD and in
relation to the Power Station the date by which all the Units
achieve COD, until the expiry or earliel termination of this
Agreementin accordancewith Article 2 of this Agreement;
"O&M Contract"or Means the contracvs entered into by the Seller with the
"O&M Contracts" Operatoror Operators, if anY;

Month" shall mean the od from the mi fo

(2X 45MW) Page16of 128

n(. f t'.t,
tt | -4'
Sh:,r,ii
f . .,',,t.ritr.
Lu-n,i.rvr-
 Commercial OperationDate till the end of 2400 hours on the
last Day of that Month and thereafterthe period commencing
at 0000 hourson the first Day of the Month and endingat 2400
hourson the last Day of the Month;

"Operating Shall havethe meaningascribedtheretoin Grid Code;

Procedures"
"Operator"or Meansone or more contractorsappointedas operatorof power
"Operators" generationfacilities ofthe Power Stationpursuantto an O&M
contract,if any;

"Party"and "Patties" Shall have the meaningascribedthereto in the recital to this

Agreement;

"PerformanceTest " Meansthe test carriedout in accordancewith Article 1.1 of

Schedule5 of this Agreement;

"Plant Load Factor" or for a given period, means the total senl out energy
"PLF" correspondingto ScheduledGeneration during the period,,
expressedas a percentageof sent out energy correspondingto
ContractedCapacity in that period and shall be computedin
accordancewith the following formula:
N
PLF (%)= 10000x E SGi / { N x CC x (100-AIIX")
|%
i=l
Where:
(1) "CC" Contracted Capacityin MW;
(2) "SGi" = ScheduledGenerationin MW for the Settlement
Periodi(only for the Procurers);
(3) 'TI" = Numberof SettlementPeriodsduring the period; and
(4) *AUX'"= 5romrativeAtxiliary Consumption(7o)

"PreliminaryDefault Shall have the meaningascribedthereto in Articte 14 of this

Notice" Agreement;

'?romoted' PromotermeansIWs Bajaj HindusthanLimited.

'?ower Station" Meansthe:

(a) coal fired power generationfacility comprisingof any

or all the Units;
any associatedfuel handling,
Pagel7 of 128

{l:) .I} o
 facilities of the power genelation facility referred to
above;
(c) any water supply, featment or storage facilities
required for the operation of the power generation
facility referredto above;
(d) the ash disposal system including ash dyke [as
applicablel;
(e) township areafor the staff colony; and
(D bayls for transmissionsystemin the switchyardofthe
powerstation,
(g) all the other assets,buildings/structwes, equipments,
plant and machinery, facilities and related assets
requiredfor the effrcient and economicoperationof the
power generationfacility;

whether completed or at any stage of development and

construction or intendedto be developedand constructedas
perthe provisionsof this Agreement;

"Project" meansthe Power Stationunderlakenfor design,financing,

engineering, procurement, construction, operation,
maintenance, repair, refurbishment, development and
inswance by the Seller in accordancewith the terms and
conditionsof this Agreement;

"ProjectDocuments" Mean
a) MOU dated22.04.2010r
b) ConstructionContracts;
c) Fuel Supply Agreements including the Fuel
TransportationAgreement,if any;
d) FinancingAgreements;
e) O&M contracts;
D any other agreementsdesignatedin writing as
such, from time to time , jointly by the
Procurersandthe Seller;

"PrudentUtility meansthe practices,methodsand standardsthat are generally

Practices" acceptedintemationallyfrom time to time by electricutilities
for the pulpose of ensuringthe safe, efficient and economic
design, construction, bommissioning, operation and
maintenanceof and power generationequipmentand mine of
Pagel8 of 128

Shalrti ,i;.r..vr:r
il..ttc,
L gcKto !v.
 the tlpe specified in this Agreement and which practices'
methodsand standardsshall be adjustedas necessary,to take
accountor:
a) operationand maintenanceguidelinesrecommendedby
the manufacturersof the plant and equipment to be
incorporatedin the Project;
b) the requirementsof Indian Law; and
c) thephysicalconditionsat the Site;

"RepeatPerformance Shall havethe meaningascribedtheretoin Article 8.1 of this

Test " Agreement;

"RevisedScheduled Shall have the meaningas ascribedtheretoin Article 3.1'2

COD" (viii).
"RPC" Meansthe relevantRegionalPower Committeeestablishedby
the Govemmentof India for a specificRegion in accordance
with the Electricity Act, 2003 for facilitating integrated
operationof the power system.inthat Region;

"RBI" MeansReserveBankof India;

"RegionalEnergy Means as defined in the Grid Code and issuedby the relevant
Accounts"ot "REA" RPC secretariator other appropriateagencyfor eachWeekand
for each Month (as per their prescribed methodology)'
including the revisionsand amendments thereof;

"Retum on Squity" Shall havethe meaningascribedtheretoin Schedule-7.

Meansthe relevalt RegionalLoad Dispatch Centreas defined
in the ElectricityAct,2003, in the regionin which the Project
is located;

"Rupees"or "Rs." Meansthe lawfrtl cunencYof India;

"SBAR- meansthe prime lending rate per arulum applicablefor lpans

with one (1) year maturity as fixed fiom time to time by the
State Bank of India. In the absenceof such rate, any other
arrangement that substitutes such prime lending rate as
mutuallyagreedto bYtheParties;

"SecondaryFuel" Shallmeanfuel oil and/ or any otherliquid fuel;

i'Selectee" meansa new company(i) proposedby the Lenderspursuantto
Schedule 17 hereof and approved by the Procurers (ii) or
proposed by the Procurer in accordancewith Schedule 17
hereof and approvedby the Lenders,for substitutingthe Seller

Bajaj(2 X 45 MW) Pagel9 of 128

Sbahti J.r,rrv:r.l
E.rtl,
Lucknow.
 for the residualperiod of the PPA by amendmentof the PPA
.or by executionof a fresh PPA in accordancewith the terms
and conditionscontainedin the said Schedule;

Means the State Electricity Regulatory Commission, as

definedin the Electricily Act, 2003,or its successors;

COD"or
"scheduled Means for the first lJnit, 24 months from the date of MOU
"Scheduled (22.04.2010)andfor the secondUnit, 28 monthsfrom the date
Operatiorr
Commercial of MOU, as determinedand announcedby the Seller to the
Date" Procurers,subjectto the extention of time by Procurersor in
acoordancewith the provisionsherein or due to ForceMajeure
Events;

"ScheduledCorurection Shall mean the date falling 120 days before the Scheduled
Date" COD of first Unit;
;'scheduledEnergy" Meansthe quantumof ex-busenergyin kWh scheduledto be
injected into the grid by the Unit correspondingto Scheduled
Generation;
"Scheduled At any time or for any period or time block meansscheduleof
Generationl'or "SG" generationin MW ex-bus given by the State Load Despatch
Centre;
"scheduledOutage" Shall have the meaning ascribed to this term as per the
provisionsof the Grid Code;

"scheduled Meansin relation to a Unit, the date,which shall be,maximum

SynchronisationDate" of one hundred and eighty (180) days prior to the Scheduled
COD of the respective Unit;

Period"
"Settlement Meansthe time block for issueof daily generationand drawal
schedulesasprovidedin ABT;

"Site" Meansthe land over which the Projectwill be developedas

providedin AnnexurelA;

"SLDC' Means the relevant State Load Dispatch Centre as defined in

the Electricity Laws, in the State where the Procurer's
registeredoffice is located;

Period"
i'Stabilisation Shall mean, a period of One hundred Eighty (i80) days
commencingon the CommercialOperation Date of the each
Unit;

BEaj QX 45 MW) Kundarkhi Page20 of 128

cY. iE p
*"";.;l;;
lJ i|,4
i*
"StateTransmission Shall have the meaningascribedthereto in the Electricity Act
Utility''or "STU" 2003;
"Supercritical Means technology with minimum steam paxametersat steam
Technology'' turbine inlet asdecidedwith the ConstructionContractor;

Bill"
"Supplementaxy Meansa bill other than a Monthly Bill raisedby any of the
Partiesin accordancewith Article 1l;

"Tariff Payment" Means the paymentsunder Monthly Bills as referred to in

Schedule7 andthe relevantSupplementaryBills;

uTariff' Meansthe tariff ascomputedin accordancewith Schedule7;

"TariffPeriod" means the period beginning on the COD of first Unit and
endingon the immediatelysucceedingMarch 31 and thereafter
eachperiod of 12 monthsbeginningon April 1 and endingon
March 3l provided that the last Tariff Period shall end on the
Expiry Date of this Agreement.

"TestedCapacity" In relation to a Unit, or the Power Station as a whole (if all the
Units of the Power Station have been Commissioned)means
the results of the most recent Perfornance Test or Repeat
PerformanceTest carried out in rclation to the Power Station
in accordancewith Article 6, Article 8 and Schedule5 of this
Agreement;

"TerminationNotice" Shall mean the notice given belbre termination of this

Agreement in accordancewith relevant clauses of this
Agreement;

"Term of Agreement" Shall havethe meaningascribedtheretoin Article 2.1;

' Meansthe sum of the following amounts,expressedin Rupees

"Total DebtAmounf
(with all amountsdenominatedin cunenciesother than Rupees
being convertedto Rupeesat the referenceexchangerale, i-e.
the selling rate in Rupeesfor the Foreign Currency on the
relevant day, as notified by the StateBank of India as its TT
Rate at 12:00noon on the date of issuanceof Substitution
Notice by the Lenders
(a) the principal amountof the senior debt incuned by the
Seller (asper the terms of the Financing Agreements)to
finance the Project according to the Capital Structure
Schedule which remains outstanding on the date of
issuance of Substitution Notice by the Lender after
accounl of anY senior debt which
Bajaj(2 X 45MW) Page21 of 128
 could have been made out of the Monthly Tariff
Paymentsreceivedby the Seller on or before the dateof
issuanceof SubstitutionNotice by the Lender as per the
termsprovided in the FinancingAgreements; and
(b) all accruedinterestand financing feespayableunderthe
FinancingAgreementson the amotrntsreferredto in (a)
abovefrom the dateofthe CapacityChargepayment(as
specifiedin Schedule7 hereof)immediatelypreceding
the dateof issuanceof SubstitutionNotice by the Lender
or, if the CapacityChargeshave not yet fallen due to be
paid, from the most recent date when interest and
financing feeswere capitalised,and
(c) if this Agreementis terminatedduring the Construction
Period, any amounts owed to the Construction
Contractorfor work performedbut not paid for underthe
ConstructionContract(otherthan amountsfalling dueby
reasonof theSeller'sdefault);

"US$"or"USD" Meansthe lawful currencyof UnitedStatesof America;

"Dollar"

"Unif' Means one steam generator, steam turbine, generator and

associatedauxilieriesof the PowerStation

"Unscheduled Shall have the meaning ascribed thereto in Rule 24 of the

Interchange"
or "UI" UPERC (Terms and Conditions of Generation Tariff)
Regulations2009 asamendedor revisedfrom time to time;

.UPERC" Shall meanUttar PradeshElectricity RegulatoryCommission;

'UPPTCLSystem" shall mean the electrical supply and transmission system
owned, used or controlled by UP Power Transmission
CorporationLtd. or its successorin UP for the purposeof
tansmitting anddistributingelectricity to the Procurers

"Week" Means a calendar week commencing from 00:00 hours of

Monday, andendingat 24:00 hoursofthe following Sunday;

'lVr'.
heelingChiarges" Are the chargespaid by the Procurersto the CTU or STU or
or "Transmission any other agency for the transfer of power from the Power
Charges" : Stationswitchyardendto the Procurers'network;

"WorkingCapital" Shall havethe meaningascribedto this term under Schedule7;

Bajaj(2 X a5 MW) Klndarkhi

L t: i] p

Shakii i;rr; ryat

Extn.
Luckaog..
 Meansa finanoialyear startingfrom ltt April of a yearto 31't
March of the next year.

1.2 Interpretation

Savewherethe contraryis indicated,any referencein this Agreementto:

1.2.1 A "Recital", an "Article", a "schedule" and a "paragraph/Clause" shall be

construedas a referenceto a Recital,an Article, a Scheduleand a paragrapl/clause
respectively of this Agreement.
1.2.2 An "affiliate" of any party shall meana companythat either directly or indirectly
controlsor is controlled by or is undercofiImon control of the samepersonwhich
controlsthe concemed'party;and contol meansownershipby one companyofat
leasttwenty six p ercent(26/o) of the voting rights of the other company.
t.2.3 A "crore" mears a referenceto ten million (10,000,000)and a "lakh."meansa
reference to onetenthof a million (1,00,000);
1.2.4 An "encumbrance"shall be construedas a referenceto a mortgage,charge,pledge,
lien or other encumbraacesecuringany obligation of any personol any other type
of preferential af,rangement(including, without limitation, title transfer and
retentionarrangements) having a similar effect.
1.2.5 "indebtedness"shall be construedso asto include any obligation (whetherincurred
as principal or surety) for the paymentor repaymentof money,whetherpresentor
future, actualor contingent;
1,2,6 A "person"shall be construedas a referenceto any person,firm, company,
corporation,society,trust, govemment,stateor agencyofa stateor a:ry association
or partnership(whetheror not having separatelegal personality)of two or more of
the aboveanda personshall be construedasincluding a referenceto its successors,
permitted transfereesand permitted assignsin accordancewith their respective
intereSts.
1.2.7 The "winding-up","dissolution"o "inso1vency", of a company
or "reorganization"
or corporation shall be construedso as to include any equivalent oI analogous
proceedingsunder the Law of the jurisdiction in which such company or
colporation is incorporated or any jurisdiction in which such company or
corporationcarries on businessincluding the seekingof liquidation, winding-up,
reorganization,dissolution,arrangement,protectionor relief of debtors'
1.2.8 Words importing the singularshall includethe plural andvice versa.
1.2.9 This Agreementitself or any other agteementor documentshall be construedas a
referenceto this or to such other agreementor documentas it may have been,or
may from time to time be, amended,varied,novated,replacedor supplemented'
1.2,10 A Law shall be construedas a referenceto suchLaw including its amendmentsor
re-enactments from time to time'
1.2.11 A time of day shall, saveas otherwiseprovided in any agreementor documentbe
constnredasa refetenceto Indian StandardTime.

X 45MW) Kundark+i

c E. (P B.l,&.
lJ. Pzf . r,t g.
Shakti B:iawar! E.{td.
I-ucknor'.
1.2.12 Differentparts of this Agreementare to be laken as mutually explanatoryand
supplementaryto each other and if there is any inconsistencybetweenor irmong
the partsof this Agreement,they shall be interpretedin a harmoniousmannerso as
to give effect to eachpart.
1 . 2 . 1 3 The tables of contentsand any headingsor sub-headingsin this Agreementhave
beeninsertedfor easeof referenceonly and shall not affect the interpretationof
this Agreement.
1.2.14 All interest payable under this Agreementshall accrue fiom day to day and be
calculatedon the basisofa yearofthree hundredandsixty five (365)days.
1 . 2 . 1 5 The words "hereof' ot "herein", if and when usedin this Agreementshall meana
reference to this Agreement.
1.2.1,6 In case any thing in this Agreement is. found in consistencewith UPERC
Regulationsor orders passedby UPERC, then UPERC Regulations/Ordersshall
prevailoverthis Agreement.

Sbao r.i .1]^iriv.in E&ttr.

&tcllgE.

Bajaj QX 45 MW) Kundarkhi

 2, ARTICLE2 ! TERM O['AGREEMENT

2,1 EffectiveDate and Term of Agreement

This Agreementshall come into effect from the EffectiveDate. This Agreementshall be
valid for a term commencing from the Effective Date until the Expiry Date ("Term of
Agreement")unlessterminatedearlier pursuantto Article 2.2. lJpon the occurrenceof the
Expiry Date, this Agreement shall, subject to Article 18,9, automaticallyterminate.unless
mutually, extendedby all the Partieson mutually agreedterms and conditions,atleastone
hundred and eighty (180) days prior to the Expiry Date, subject to approval of the
AppropriateCorirmissionoasnecessary'

2,2 Early Termination

This Agregrnentshall terminatebeforgthe Errpiry Date:

i. if either all the Procurers (ointly) or Seller exercises a right to terminate,

pursuantto Article 3.3, Article 4'5.3, Article 14.4.5 or Schedule10 of this
Agreementor any other provision of this Agreement;or
ii. in suchother circumstancesasthe Sellerand all the Procurers(iointly) may agree,
in writing.

2.3 Extensionof term/Renewal

2.3.1 The Term of this Agreementcan be extendedbeyondthe Term of Agreement

("Renewal") by delivering written notice by either Party not later than one
hundredand eighty (180) days prior to tle end of the Term of Agreement,in
which eventthe Teim of this Agreementshall extendby mutual Agreementof
the Parties for a mutually agreedperiod with such amendmentsas shall be
mutually agreedby the Seller and the Procurersand approvedby UPERC, as
may be applicable; The extensionin term of Agreement, as agreedby the
Parties , would be allowed by the Commission after prudencecheck on a
petition filecl by the Developerbefore90 daysfrom the expiry of term of PPA'

2.3.2 Whereeither party signifies its intentionto extendlhe term of this Agreement
and negotiations between them commence,then this agreementshall be
deemedtohavebeenextendedbeyondtheTermofAgreementuntilthe
negotiationsaxeended,provided that during this spill over period the terms

Sbakti f .i:i val EJttl.

Lucklros.
 and conditionsfor supply and purchaseof power and other mattersincidental
thereto,will remainunchanged;

2.3.3 Notwithstanding anlthing to the contrary contained herein, if either Party

exercisesits right of renewal as aforesaidand if the seller and the Procurers
areunableto agreeon the termsand conditionsapplicableduring the mutually
agreedperiod of the extendedterm within a period of one hundredand eighty
(180) daysfrom the Expiry Dat9,thenthe Term of Agreementshall end on the
date of expiry of the Term.of Agreementas automatically extendedby spill
overperiod.

on non-extension
2,3,4 Consequences

2,3.4,1 Saleof Enerry to third PartY

If at the expiry of the Term of Agreement,the Agreementis not extended

. pursuantto the above provisions, then the Seller may, subject to applicable
laws, sell the ContractedCapacityunderthis Agreementto any third party' In
such case. the ProcurersfuPPCL/SLDC/STU shall have no objection in
wheeling such power, subject,however' to the payment of wheeling charges
by the Selleror the third party buyer,asdeterminedby the UPERC'

2.3,4.2 Saleof the Power Station

l

If at the expiry of the Term of Agreement;the Agreementis not extended,the

seller may alsoexerciseits optionto sell the Powersrationas it may decide
aiid in such eventthe seller shall have discretion to sell the Power station to
any third party or the Procurer(s).

2;3.5 Extensionon ForceMajeure

Notwithstandinganyhing to the contrary containedin this Agreement, re

Scheduledcommercial operation Date of any unit shall be extendedby the
durationof any ForceMajeureEventoccurringduringthe ConstructionPeriodand
asapprovedby the

(2 X 45MW)
2.4 Survival
2.4.t The expiry or termination of this Agreement shall not alfect accrued rights and
obligationi of the Parties under this Agreement, including the righJ to -receive
Liquidated Damages as per the terms of this Agreement, nor shall it affect any
continuing obligaiions for which this Agreementprovides, either expressly or by
necessaryimplication, the survival of, post its expiry or termination.

2.5 Lead Procurer

2.5.1 The Procurers hereby appoint and authorise "Procurer No' 3-"
[MadhyanchalVidyut Vitran Nigam Ltd- [hereinafterrefened to asthe "Lead
Procurer"] to represent all the Procurers for discharging the rights and
obligations of the Procurers,which are required to be undertakenby the
Procurers jointly as mentioned in Schedule 12 of this Agreement'
Accordingly, all the Procurersshall follow and be bound by the decisionsof
the Lead Procureron all suchmatters. EachProcureragreesthat any decision,
communication, notice, aciion or inaction of the Lead Procurer on such
mattersshall be deemedto havebeenon its/his behalf and shall be binding on
eachof the Procurers.The seller shall be entitledto rely upon any suchaction,
decision or communicationfrom the Lead Procurer. It is clarified that this
Article 2.5 is not intendedto and shall not renderthe Lead Procurerliable to
dischargeindividual Tariff paymentsof the other Procurers.

The Procurershereby also appoint and authorise"Procurer No, YY" [Insert

nameof the Altemate LeadProcurer](hereinafterreferredto asthe "Altemate
Lead Procurer"), to act as Lead Procureras per the provisions of this Article
2.5.1,on the occurrenceof any Eventof Default speciftedin Article 14'2 by
the Lead Procurer. In such an event, the Seller may, at its option, within a
period of fifteen (15) days from the date of issue of the Preliminary Default
Notice referredto in Article 14.4.2afi if the said defaultby the LeadProcwer
subsists, speciff in writing to all the Procurers that the Altemate Lead
procurershall thereafteract asthe Lead Procurer. In such a case,if the seller
so notifies, the Altemate Lead Procurershall, thereafter,act as Lead Procurer
for the purposesof this Agreemen! and the Lead Procurerearlier appointqd
underthis Article 2.5.1 shall automaticallyceaseto be the LeadProcurer. Itis
clarified that all decisionstaken by the Procurer 2 in its capacity as Lead
Procurerbefore such change,shall continueto be valid, in accordancewith
this Agreement.

In the event of ProcurerYY becomingthe Lead Procureras per this Article,

all the Procurersshall also appointany of Procurers,other than Procurer2, as
an Alternate Lead Procurerand thereafterthe provisions of this Article 2.5.1
shallbe applicable.

r\val€

Shal':r
i,,,1:i
a.raajixiu.
Luc&row^
2.5.2 Notwithstandinganything containedabove,any decisionwhich is requiredto
be taken by the Procurersjointly under the provisions of Article 14 shall be
takenby all the Procurersand in caseof differenceamongstthe Procurets,the
said decision s hall be taken by the Majority Procurersas defined in Article
2.5.3below.

2.5.3 Any deciqiontakenby Procurerswho takentogetherconstituteminimumsixty

five per cent (650/o)of the ContractedCapacity of the Power Station and
constitute in number atleast fifty per cent (50%) of the total number of
Procurers('Majority Procwers'), shall be binding on the Lead Procurerand
all other Procurers.The Majority Procurersshall alsohavethe right to replace
the LeadProcurerby any othet Procurerof their choice.

:r:t tl

Shakii l:ir.: '.;.rii [xta.

Lu€&toE.
3. ARTICLE 3 : CONDITIONS SUBSEQUENTTO BE SATISFIED BY
THE SELLERAND THE PROCURERS

3.1 Satisfactionof conditionssubsequentby the Sellerand the Procurers

Prior to the Effective Date, Promoter has provided to GOUP, the B4nk
Guaranteeof an aggregateamount of Rupees22.5 crores in accordance
with the provisions of ClauseI 6 of the MOU dated22.04.201'0.The MOU
is valid till 18 monthsfrom the date of expcutionand the Bank Guarantee
shall remainvalid beyondsix monthsof the period of the MOU . In caseof
breachof the MOU or any.part thereof by above said company the said
Bank Guranteecanbe invoked by GOUP.
The Promoter shall provide for the same aggregateamount of Bank
Guaranteeas provided with GoUP with the procurers having validity
before 3 months from scheduledCOD to after 3 months from scheduled
COD. In casethe actual COD is different from the scheduledCOD then the
validity of performa.nceguaranteeshall be adjustedaccordingly so that it
remainswith the procurersuplo after 3 monthsfrom actualCOD.

3.1.1A Not Used.

3.1.2 The Seller agreesand undertakesto duly perform and completethe

following activities within six [6] Monthq from the Effective Date unless
such completion is affected due to the Procurets' failure to comply with
their obligationsunderArticle 3.1'24 of this Agreementor by any Fotce
Majeureeventor if any of the activities is specificallywaived in writing by
t}leProcurersjointlY:

i) the Seller shall have received the Initial Consents as mentioned in

Schedule2, either unconditionally or subject to conditions which do not
materially prejudice its rights or the performanceof its obligationsunder
this Agreement;
ii) the Seller shall have obtainedcoal linkage from standing Linkage
Committee(Long Term), GOI and providedthe copiesof the sam€to the
Procwerl
iii) the Sellershallhave
a) awardedthe Engineering,ProcurementandConstruction contract('!EPC
contract)or main plant contractfor boiler, rurbineand generatorC'BTG'),
, for the Projectand shall havegiven to suchcontractoran inevocablenotice

,ri,
'* i!i
ggu,.
,; -.i-,".- :,i i
_
I"ucktror,
 b) Not used.
c) Sellershall haveachievedFinancialClosure;
iv) the Seller shall have made availableto the Procurerthe data with
respect to the Project for design of Interconnection Facilities and
TransmissionFacilities, if required;

v) The Seller shall have finalised the specific delivery point for supply of
power in consultationwith the Procurer;
vi) The Seller shall haveprovided an irrevocableletter to the Lendersduly
acceptingand acknowledgingthe rights provided to the Lendersunderthe
termsof this Agreement.
vii) the Seller shall have sent a written notice to all the Procurer(s)
indicatingthat
a) the ScheduledCOD shall be as per the original ScheduledCOD i'e
24monthsfor the first Unit and 28 months for the secondUnit from the
MOU dateor
b) that it intendsto preponethe ScheduledCOD to be (i) for the first Unit,
to as
[Insert Date]; for the secondUnit [Insert Date] (hereinafterreferred
"RevisedScheduledCOD").?rovidedthat,the RevisedScheduled COD of
any Unit shall not be earlier than [Insert months] months from the MOU
date
ix) Not Used.

3.1.2A. The Procurersagreesand undertakesto duly perform and completethe

following activities within six [6] Months from the Effective Date unless
suchcompletionis affecteddue to the Seller's failure to comply Tt.trtil
obligationsunderArticle 3'1.2 of this Agreementor by any ForceMajeure
.u"nt o, if any of the activities is speciflcally waived in writing by the
Seller

1. To the extent sarn€are within their respectivejurisdiction of, GOUP

and/orProcruersshall haveprovided or causedto be provided ail necessary
permits and shall have provided Govemmental Approvals for the
elechicity, andwater supplyrequiredfor the constructionof the Units'

2. UPPCL/the Procurers shall also have reasonably assisted the

Company in obtaining coal linkage from GoI, by providing appropriate
recommendations

Page30 of
3.1.3 Not used

3.2 ProgressReport

The Seller and the Procurersshall noti$ one another in writing at least
oncea Month on the progressmadein satisSing the conditionsin Articles
3.1.2and3.1.2A.

3.3 of non-fulfillment of conditionsunder Article 3.1

Consequences

3.3.1 if the conditionsspecifiedin Article 3.1 are not duly fulfilled within the
relevant stipulatedtime or after extendedtime, the Procwer or the Seller
shall have the right to terminatethis Agreementby giving a Termination
Notice to the Seller/ Procurers in writing of at least seven (7) days to
explain and/orperform
),J,4 In caseof inability ofthe Sellerto perform the activities specifiedin Article
3.1 within the relevant stipulatedtime period or during extendedperiod,
otherwise than for the reasons directly attributable to the Procurers/
UPPCL/GOUPor Force Majeureevent,this Agreementmay be terminated
by the UPPCL/the Lead Procurer at its option, by giving a Termination
Notice of at least seven(7) days,in writing to the Seller and in suchcase,
the Seller shall be liable to pay liquidated damages,as may be determined
by UPERC; provided that the amount of liquidated damagesshall in no
caseexceedthe amountof bank guaxantee given by the Promoter as stated
uhderAricle 3.I .1
3.3.3 Similalrly, in caseof inability ofUPPCL/Procurersto perform the activities
specifiedin Article 3.1 within the relevantstipulatedtime period of during
. extendedperiod, otherwisethan for the reasonsdirectly attributableto the
Seller or Force Majeure event, this Agreementmay be terminatedby the
Seller at its option, by giving a Termination Notice of at least seven(7)
the
. days, in writing to UPPCL/the Lead Procurer and in such case,
Procurershall be liable to pay liquidated damages,as may be determined
by UPERC, against site developmentand other charges,to Seller' Bank
Guaranteeof the Promoter shall be releasedforthwith
3.3.4 Any extension/increase in time period provided hereinaboveshall also lead
to iqual. increasein the time period of Bank Guaranteeprovided by the
sellerunderclause3.1.1,The new scheduledCoD shall be decidedwith
the approvalof Commissionaccordingly,

Bajaj (2 X 45 MW) Kundarkhi Page31 of 128

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 ARTCLE 4 : DEVELOPMENT O['THE PROJECI

4.1 The Seller'sobligationto build, own and operatelhe Proiect

to be
4.1.l Subjectto the t,ermsandconditionsof this Ageement,the Sellerundenakes
responsible,at Seller'sown costandrisk, for:

a) obtaining (other than Initial Consenls)and maintaining in full force and effect all
Consentsrequiredby it pursuantto this AgteementandIndian Law;

b) executingthe Project in a timely mannerso as to enableeachof the Units and the

Power Station as a whole to be Commissionedno later than its Scheduled
Commercial OperationsDate and such that as much of the ContractedCapacity as
can be made available through the use of Prudent Utility Practiceswill be made
available reliably to meet the Procurers' scheduling and dispatch requirements
throughoutthetermof this Agreement;

c) owning the Project tlroughout the term of this Agreement free and clear of
encumbrancesoexceptthoseexpresslypermittedby Article l6;

d) procure the requirementsof electricity at the Project (including construction'

and start-uppower) andto meetin a timely marurerall formalities for
cor,nrnissioning
. gettingsucha supply of electricity;
e) provide on a timely basisrelevantinformation on PowerStation specifications
which may be requiredfor interconnectingsysternwith the transmissionsystem;

0 ruifrling att other obligationsundertakenby him underthis Agreement.

4,2 Procurers'obligation
Subjectto the termsand conditionsof this ,Agreement,the Procurers:
a) shallbe responsiblefor procuringthe Interconnection andTransmissionFacilities
to enablethe Power Station to be connectedto the Grid Systemnot later than the
Scheduled CormectionDate;
b) shall ensurethat the Seller is provided an electrical connection for reasonable
constructiorLcommissioning and staxt up power at the Project as reasonably
requisltioned by the Seller by written intimation to the Procurers,on the then
prevalenttermsand conditionsasapplicableto suchconsumers .t
c) shall be responsiblefor payment of the Transmission Charges and RLDC and
SlDC.chargesin proportionto the conhactedcapacity;
d) shall make all reasonableafrangements for the evacuationof the Infirm Power
from the Power Station;and

Bajaj(2 x 4s Mw)

S h r : i j r . . , ': : i ! : r i t r .
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 e) firlfilling obligationsundertakenby them underthis Agreement.

4.3 Purchaseand saleof Available Capacityand ScheduledEnergy

4.3.1 Subjectto the termsandconditionsof this Agreement,the Sellerundertakes to sellto
the Procurers,and the Procurersundertaketo pay the Tariff for ninety percent (90%)
of the Available capacrty and ScheduledEnergy of the Power station, accordingto
their then existing Allocated Contract Capacity, throughout the term of this
Agreement.
4.3.2 Unlessotherwiseinstructedby atl the Procurers(ointly), the Sellershall sell ninety
percent (90%o)of the Available capacity of the Power station to eachProcurer in
ploportion of eachProcurer'sthen existingAllocated contractedcapacity pursuantto
DispatchInstructions.
4,3,3 The ScheduledGenerationand Electrical output attributableto ninety percent(90%)
of Available Capacity shall be provided to each Procurer in proportion of each
Proiurer;s then existing Allocated Contracted Capacity pursuaat to Dispatch
Instructions.
4.3.4 The Seller shall be entitled to sell the ScheduledGenerationand Electrical Output
attributable to ten percent (1070) of Available Capaclty to third party consumers,
otherlicencies,traders,etc.

4.4 Right to Available Capacityand ScheduledEnerry

4.4.1 Subjectto otherprovisionsof this Agreement,thelentirecontractedcapacity shallat
all times be for the exclusivebenefit of the Procurersand the Procurersshall havethe
exclusiveright to purchasethe entire ContractedCapacityfrom the Selier.The Seller
shall not grant to any thM paxtyor allow any third party to obtain any entitlementto
the Available Capacrty and/or ScheduledEnergy attributable to Procurers then
existingAllocatedContractCapacity.
4.4.2 Notwithstanding Article 4.4.1,theseller shallbepennittedto sell power,beinga part
ofthe Available Capacityofthe Power Stationto third partiesifi
(a) there is a part of Available capacity which has not been Dispatchedby the
Procurer,ordinarily entitledto receivesuchpart ('ConcemedProcurer'); and
(b) suchpart hasfirst beenoffered,at the sameTariff, to the other Procurers(by the
'
RLDC and/or the Seller), who were not ordinarily entifled to receive suchpart
aad they have chosento waive or not to exercisetheir first right to receivesuch
part of the Available capacity within two (2) hours of being so offered the
opportunitYto receivesuchPart.
(c) Lead procurer has rejected seller's proposril to plocure coal from any source
otherthancoallinkageasperclause- 6.5
4.4.3 If any one or more than oneProcurdr do not avail power upto the Available Capacity
p.ouid.d by the Seller conespondingto such Procurer'sor Procurers'sAllocated
bontractedCapacity,andthe provisionsof Article 4.4.2 havebeencompliedwith, the
seller shall be entitled to se1lsuch Available capacity not procwed, to any person
without losing the right to receive the Capacity Charges from the Concemed

Bajaj(2 X 45 MW)

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Liictnos.
 Procurer(s)for suchun-availedAvailable Capacrty.In sucha casethe surplusamount
receivedover variable chargeshall be adjustedagainstthe Fixed Chargeliability of
such Procurer(s)in respectof quantum of such capacity and/or power sold to third
partiesasprovidedbelow.

In case the surplus amount over variable charge is higher than the Fixed charge
liability of suchProcurer(s)in respectof quantumof suchcapacityand/orpower sold
by Seller to third parties,such excessamountshall be retainedby Seller. In casethe
. surplusamountover Variable Chargesis lower than the Fixed Chargeliability of such
Procurer(s)in respectof the quantumof suchcapacityand/orpower sold by seller to
third parties, such short fall amounl shall be payableby the respectiveProcwer(s).
Providedthat in suchcase, ifthe power is sold to its affiliate company then it should
not be sold at a tariff less than the agreed.in this PPA. In such case, the
Procurers/UPPCL/SLDC/STU shall haveno objectionin wheelingsuchpower .

4.4.4 TheSellershall not itself use any of the electricitygeneratedby the Power Station
during the term of this Agreement, except for the purpose of meeting the Power
Station's auxiliary load requirements,as per the norms laid down by the Appropriate
commission and housingcolony for the staff and other incidental usageof the same
category.

4,4,5 The saleunderUnscheduledInterchangeshall not be consideredas saleto third party

for thepurposesof this Agreement'

4.5 Extensionsof time

4.5,1 In the eventthat:

'the
(a) Selleris preventedftom performingits obligationsunderArticle 4'l'1(b)
by the stipulateddate,dueto any ProcurerEvent of Default; or
(b) Unit cannotbe commissionedby its scheduledcommercial operations Date
becauseof Force lvlajeure Events. the scheduled commercial operations
Date, the SsheduledConnectionDate and the Expiry Date shall be deferred,
subjectto the limit prescribedin Article 4.5.3, for a reasonableperiod but not
tess than 'day for day' basis, to permit the Seller through the use of due
diligence; to overcomethe effects of the Force Majeure Events affecting the
seller or in the caseof the Procurer'sor Procrrers' Evem of Default, till such
time suchdefaultis rectified by the Procurer(s).

4.5.2 7f the Partieshave not agreed,within thirty (30) days after the affectedParty's
performancehas ceasedto be affectedby the relevantcircumstance,on how long the
ScheduledCommercial Operations Date, the ScheduledConnection Date or the

(2 X 45 MW) Krmdarkhi Page35 of 128

LE liirow.
 Expiry Date shouldbe deferredby, any Party may raisethe Disputeto be resolvedin
accordancewith Article 17.

4.5.3 In caseof extensionoccurringdueto leasonsspecifiedin Article 4.5' l(a), the original

scheduled commercial operations Date of any unit or the original scheduled
commercial Date of the Power station as a whole, would not be extendedby more
than two (2) yearsor the dateon which the Sellerelectsto terminatethis Agreement,
whicheveris earlier.

As a result of such extension,the date newly determinedshall be deemedto be the

ScheduledCommercialOperationsDate for the purposesof this Agreement'

4,6 Liquidaterl damagesfor delayin providing ContractedCapacity

4,6.1 If any Unit is not commissionedby its scheduledcommercialoperationDateother

than for the reasonsspecifiedin Article 4.5.1,the Sellershall pay to eachProcurer
tiquidated damages, proportionate to their then existing Allocated Contracted
capacitn for the delay in such commissioning or making the unit's contracted
Capacityavailablefor dispatchby suchdate.The sum total ofthe liquidated damages
payableby the seller to the Procurersfor .suchdelayedunit shall be calculatedas
follows:

SLDb= [CCunx dn x DR1] , if dn <= 180

SLDb= [CCunx 180xDRl]+ [CCunx(dn-180)xDR2],if dn> 180

Where:

a) "SLDb" are the liquidated damagespayableby the Seller during the period
bgginningwith the day from the Scheduledcommercial operation Date of the Unit
up to andincluclingthe day on which Unit is actuallyCommissioned;

b) "CCun' is the ContractedCapacityofthe U:rit "n";

c) *dn is the nunber of daysin the period beginningwith the day after the Scheduled
iommercial OperationDate of the Unit "n" up to and including the day on which
suchUnit is actually Commissioned;
d) "DRl. is Rs. Five HundredFifty (550) of damagesper MW per day of delayin
*DR2- is Rs. Five thousandfive hundred sixty
case..dn" is less than l S0daysand
(5,560) o f damagesper MW per day of delay in case"dn" is equalto or more than
180days
I

amount
4.6.2 The Seller'smaximumliability underthis Article 4.6 shall be limited to t]Ie
of liquidateddamagescalculatedin accordancewith Article 4.6.1 for and upto twelve

Bajaj(2 X 45 Mw)

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 (12) Months of delay for the Unit, provided that the amount of such Liquidated
damagesshall in no casefor eachUnit exceedRupees2.25 crores. Providedthat in
caseof failure of the Seller to Commissionthe Unit evenafter expiry of twelve (12)
Months from its ScheduledCommercial Date, the provisions of Article 14 shall
apply.

4.6.3 The Sellershallpay the amountcalculatedpursuantto Article 4.6.1to the Procurers

within ten (I0) daysofthe earlierof:
(a) the dateon which the Unit is actually Commissioned;or
(b) expiryof the twelve(12)monthperiodmentionedin Article 4.6.2.

If the Sellerfails to pay the amountof damageswithin the said period of ten (10)
days, the Procurersshall be entitled to recover the said amount of the liquidaled
damagesby invoking the Bank Guarantee.If the then existing Bank Guaranteeis for
an amount which is less than tle amountof the liquidated damagespayable by the
Seller tq the Procurers under this Article 4.6, then the Seller shall be liable to
forthwith pay the balanceamount.

4.6.4 The Parties agree that the formula specifiedin Arlicle 4'6.I for calculationof
liquidated damagespayableby the Seller underthis Article 4.6, read with Article 14
is a genuineand accuratepre-estimationofthe actual lossthat will be sufferedby the
Procurersin the event of Seller's delay in achieving Commissioningof a Unit by its
Scheduled COD.

4.6.5 If any Unit is not commissionedby its RevisedscheduledcoD other than for the
reasonsspecifiedin Article 4.5.1,the Seller sha1lpay to eachProcurerliquidated
damages,proportionateto their.then existing Allocated ContractedCapacity, for the
delay in suchCommissioningor makingthe Unit's ContractedCapacityavailablefor
tlispatchby such date.The sum total ofthe liquidated damagespayableby the Seller
. to the Procurersfor suchdelayedUnit shall be equivalentto the damagespayableby
the Procurersto the CTU/STU(asthe casemay be) for the periodofdelay, asper the
terms of agreementproposedto be enteredinto by the Procurerswith CTU/STU for
establishmentof hansmission system' Provided however, the liquidated damages
payableby the Seller to tle Procurersin caseof delay under this Article 4.6.5 shall
not be more than twenty percent (20%) of liquidated damagescomputed in the
manner mentioned in Article 4.6.1. Provided further, in case of delay beyond
. ScheduledCommercialOperationDate,the provisionsof Article 4.6.1to 4'6.4 will
apply for suchdelay beyondScheduledCommercialOperationDate.

4.7 Liquidateddamagesfor delay dueto ProcurerEvent of Default andNon Natural

ForceMajeureEventsand ForceMajeureEvent(affectingthe Procurer)
J

Bajaj(2 X 45MW) Kundarkhi SbaLrii;:;.r,i'et Erts"

LuckootI].
4.7.1 If
a) a Unit sannot be commissionedby its ScheduledCommercial Operations
Date,due to a ProcurerEvent of Default or due to Non Natural ForceMajeure
Event (or Natural Force Majeure affecting the Procurer/s)provided suchNon
Natural Force Majeure Event (or Natrnal Force Majeure affecting the
Procurer/s)has continued for a period of more than t}ree (3) continuousor
non-continuous Months: or

b) a Unit is available for conductingCommissioningTests and is anticipatedto

be capableof duly completing the CommissioningTegtsas certified by the
IndependentEngineer,but the said CommissioningTests are not undertaken
or completeddue to such ProcurerEvent of Default or due to Non Natural
Force Majeure Event (or Natural Force Majeure affecting the Procurer/s)
provided such Non Natural Force Majeure Event (or Natural Force Majeure
affecting the Procurer/s)has continued for a period of more than tfuee (3)
continuousor non-continuousMontls:

suchurrit shall, until the effects of the ProcurerEvent of Default or of Non Natural
Force Majeure Event (or Natural Force Majeure affecting the Procurer/s)no longer
prevent the Seller from undertakinga ComrnissioningTesVs,be deemedto have a
TestedCapacityequalto the InstalledCapacrtyand to this extent,be deemedto have
beencommissionedwith effect from the scheduledcoD without taking into account
delay due to suchProcwer Event of Default or Non Natural ForceMajeure Event (or
Natural ForceMajeure affectingthe Procurer/s)and shall be treatedasfollows.

a) In caseof delay on accountof the ProcurerEvent of Default, the Procurersshall

makepaymentto the seller of capacity chargescalculatedon Normative Availability
of contractedcapacity of suchunit for and during the period of suchdelay. Provided
however,if any Urit is not Commissionedby its RevisedScheduledCOD due to
unavailability of transmissionsystem, the Procurer(s) shall make payment to the
seller ofan amountequivalentto the arnountspaid by the cTU/sTU (asthe casemay
be) to the Procurersas per the termsof agreementpfoposedto be enteredinto by &e
Procurerswith CTU/STU for establishmenlof transmissionsystemfor the period of
delayup to Sch.eduled CommercialOperationDate'

b) In case of delay on account of Direct Non Natural Force Majeure Event, the
Procurers shall make payment to the Seller of Capacity Charges calculated on
Normative Availability of conhacted capacity of such unit for the period of such
eventsin excessof three (3) continuousor nori-continuousMonths in the manner
providedin (d) below.

c) In caseof an IndirectNon NaturalForceMajeureEvent (or Natural Force

Majeure affecting the Procurer/s),the Procurersshall make paymentsfor amounts

Bajaj(2 X 4s Mw) Page38 o{

*-,,,\ .
ii tsr,rfir a EKtu
Lucboow,
 ("Debt Service") relatable to such Unit, which are due under the Financing
Agrbements, subject to a maximum of Capacity Charges based on Normative
Availability, for the period of such eventsin excessof three (3) continuousor non-
continuousMonths in the marurerprovidedin (d) below.

d) In caseof delay due to Direct and Inditect Non Natural Force Majeure Events (or
Natural ForceMajeure affecting the Procurer/s),the Procurershall be liable to make
paymentsmentionedin (b) and (c) above,after Commissioningof the Unit' in the
form of an increasein CapacityCharges.Provided.suchincreasein Capacity.Charges
shall be determinedby AppropriateCommissiononthe basis of putting the Seller in
the sameeconomicposition asthe Sellerwould havebeenin casethe Sellerhad been
paid amountsmentionedin (b) and (c) above in a situation where the Direct Non
Natural ForceMajeure or Indirect Non Natural ForceMajeure Event, asthe casemay
be,hadnot occurred.

For the avoidanceof doubt, it is specifiedthat the chargespayableunderthis Article

4.7.1shall be paid by the Procurersin proportionto their then AllocatedContracted
CaPacitY.

4.7.2 Inevery casereferredto in Article 4.7.1 hereinabove, the Sellershall unde(ake a

commissioning Test/s as soon as reasonablypracticable[and in no event later than
two (2) weeks or such longer period as mutually agreedbetweenthe seller and the
procurers(ointly) after the point at which it is no longer preventedfrom doing so by
the effectsof ForceMajeure Eventsor ProcurerEvent of Default (as appropriate)and
if such CommissioningTes's is not duly completedand / or demonstrate/sa Tested
capacrty ofa unit which is lessthan ninety five (95) percentof its Installedcapacity,
then:

a) The Unit which fails the commissioningTests,shall be deemedto havenot

beenCommissioned from thedeemedCOD referredto in Article 4'7'l ;
b) The Seller shall repayto the Procurers,all sumsreceivedby way of Capacity
Chargefor such Unit along with intsrest at the samerate as Lale Payment
Surcharge;and
c) If the seller fails to achieve commissioning by the scheduledcommercial
operation Date, it shall also pay liquidated damagesto the Procurerfor such
Unit calculatedin accordancswith Article 4,6'

4.8 Limit on amountspayabledue to default

4.8.1 The Partiesexpresslyagreethat the Procurers'only liability for any lossof profits or
any other loss of any other kind or description whatsoever (except claims for
indemnity underArticle 15), sufferedby the seller by reasonof the Procurers'failure

Bajaj(2 x 45Mw)
 to meetits obligationsunderArticle 4.2(a) to Article 4.2(d) shall be to pay the Seller
the amountsspecifiedin Article 4.7 andAfticle 14.
4.8.2 Similarly, Seller's only liability for any loss sufhred by the Procurersof any kind or
descriptionwhatsoever(exceptclaims for indemnity under Article 15), by reasonof
the Seller's failure to meet its obligations of Commissioningthe various Units on
their ScheduledCOD, shall be asper Article 4'6 andArticle 14.

Shai{ii B r,'vr jl E,i(na

*fLoqrt

Bajaj(2 X 45 Mw)
ARTICLES : CONSTRUCTION

5.1 Seller'sConstructionResponsibilities

The Sellershallbe responsiblefor designing,consfiucting,erecting,commissioning,

completingand testing the Power station in accordancewith the following, it being
clearly understoodthat in the event of inconsistencybetween two or more of the
following, the order of priority as betweenthem shall be the order in wtich they are
placed,with 'applicablelaw' being the first:
a) applicableLaw;
b) the Grid Code;
c) the termsandconditionsof this Agreement;
d) the FunctionalSpecifications;and
e) PrudentUtilitY Practices.

Notwithstanding anlhing to the conftary contained in this _PPA,the Seller shall

ensurethat tle technicalparametersor equipmentlimits of the Project shall alwaysbe
subjectto the requirementsas specifiedin points (a) to (e) aboveand under no event
shall over-rideor contradictthe provisionsof this Agreementand shall not excusethe
Sellerftom the performanceof his obligationsunderthis Agreement'

5.2 The Site

The seller acknowledgesthat, before entering into this Agleement, it has had
sufficient opportunity to investigatethe Site and acceptsfull responsibility for its
condition (including but not limited to its geological condition, on the site, the
adequacyofthe road and rail links to the Site andthe availability of adequatesupplies
ofwater) and agteesthat it shall not be relievedfiom any of its obligationsunderthis
Agreement or be entitled to any extension of time or financial compensationby
reasonofthe unsuitability ofthe Site for whatever'teason'

The costof R&R if any shall be bomedby Sellerasper GOUP direction'

5.3 InformationRegardinglnterconnectionFacilities

The Lead Procurer shall provide the seller, on a timely basis,all information with

(2X45 Page4l of 128

 Quality of WorkmanshiP

The Sellershall ensurethat the PowerStationis designed,built and completedin a

good workmanlike mannerusing soundengineeringconstructionpracticesand using
only materialsand equipmentthat are new and of internationalutility grade quality
suchthat, the useful life of the PowerStationwill betill the Expiry Date'

The Seller shall ensure that desigrr,conslructionand testing of all equipment,

facilities, componentsand systemsof the Project shall be in accordancewith Indian
standaxdsand codes issued by Bureau of Indian Standardsand/or intemationally
recognised andCodes.,
Standards

Consentb

The seller shall be responsiblefor obtaining all consents (other than thoserequited
for the Intercormectionand TransmissionFacilities and the Initial Consents)Iequired
for developing,financing, constructing,operatingandmaintenanceof the Project and
maintaining/ renewing all such Consentsin order to carry out its obligations under
this Agreementin generalandthis Article 5 in particularand shall supplyto the lead
Procurer(or Procurer,as applicable)plomptly with copiesof eachapplicationthat it
submits, and copy/ies of each consent/approval/license which it obtains. FoI the
avoidance of doubt, it is clarified that the seller shall also be responsible for
maintaining/renewingthe Initial Consentsand for fulfilling all conditions specified
therein.

5.6 ConstructionDocuments

The Sellershall retain at the Site andmakeavailablefor inspectionto the Piocurersat

all reasonabletimes copiesof the resultsofall testsspecifiedin Schedule5 hereof.

5.7 Co-brdinationof ConstructionActivities

5.7.l Beforethetenth( I 0th) day of eachMonth,duringthe consfuction Period:

(a) the Sellei shall prepareand submit to the Lead Procurer(or Procurer,as
applicable)a monthly progressreport' in tlie AgreedForm; and
(b)TrePro"*"rrshalljointlyprepareandsubmittotheSelleramonthly
progress report, in the Agreed Form, regarding th€ Interconnection and
Transmission Facilities

by
The Seller individually and all the Procurers(ointly) shall designatefrom timq to time,
be
giving a written notice to the other party up to fi-ve (5) of its/their employeeswho shall
who shall
responsiblefor coordinatingall constructionactiviti€s relating to the Project and
Page42 of 128
Bajaj(2 X 45 MW) Kundarkhi

ShaktiEnewar E{to,
tucklou.
haveaccessat all reasonabletimesto the otherparty'sland for the purposeof apprisingthe
progressof the work being carried on, subject to such designatedpersons or the party
appointingthem giving ieasonablenotice to the other party of suchvisit and subjectto their
complyingwith all reasonablesafetyprocedures.

of all the
For the avoidanceof doubt, it is clarified that the total numberof the representatives
Procurers shallnot exceedfive (5).

,'1:'";t;,
Sbaliii.l:r*an Extl'
Lu€kuog.
ARTICLE 6 : SYNCHRONISATION, COMMISSIONING AND COMMERCIAL
OPERATION

6.1 Synchronization

6.1.1 The Sellershallgive the ProcurersandRLDC/SLDCat leastsixty (60) daysadvance

preliminary written notice and at leastthirty (30) daysadvancefinal written notice,of
the dateon which it intendsto synchronisea Unit to the Grid System'
6.1.2 Subjectto Article 6.1.1,Unit may be synchronised by the Sellerto the Grid System
when it meets a1l connectionconditions prescribed in any Grid Code then in effect
and otherwisemeets all other Indian legal requirementsfor synchronisationto the
Grid System

6.2 Commissioning

6.2.1 The Seller shall be responsiblefor ensuringthat each Unit is Commissionedin

accordancewith Schedule5 at its own cost,risk arid expense.
6.2,2 TlneSeller shall give all the Procurersand the IndependentEngineernot lessthan ten
(10) daysprior written notice of ComrnissioningTest of eachUnil'
6,2,3 The Seller (individually), the Procurers (ointly) and the IndependentEngineer
(individually) shall eachdesignatequalified and authorisedrepresentativesto witness
andmonitor CommissioningTest of eachUnit.
6.2.4 Testingand measuringprocedues appliedduring eachCommissioningTest shall be
in accordancewith the codes,practicesand proceduresmentionedin Schedule5 of
this Agreement.
6.2.5 Within five (5) daysof a Commissioning Test,the Sellershallprovidethe Procurers
(ointly) and the IndependentEngineerwith copies of the detailed Commissioning
Test resglts. Within five (5) days of receipt of the CommissioningTest results,the
IndependentEngineer shall provide to the Procurersand the Seller in writing, his
findings from the evaluation of CommissioningTest results, either in the form of
Final Test Certificatecertiffing the mattersspecifiedin Article 6.3'l or the reasons
for non-issuanceof Final Test Certificate' '

6,3 CommercialOPeration
6.3.1 Unit shall be Commissionedon the day after the date when all the Procurers
receiveaFinalTestCertificateofthelndependentEngineerstatingthat:

a) the CommissioningTestshave been carried out in accordancewith Schedule5;

and areacceptableto him; and
b) the resultsof the PerformanceTest show that the Unit's TestedCapacity,is not
less than ninety five (95) percentof its Installed capacrty ( as existing on the
Effective Dalle) .

X 45 MW) Kundarkhi Page44 of 128

Luckrov.
6.3.2 If Unit fails a commissioning Test,the seller may retakethe relevanttest,within
a reasonableperiod after the end of the previoustest, with three (3) day's prior
.written notice to the Procurersandthe IndependentEngineer.Providedhowever,
the Procurersshall have a right to require defermentof any such re-testsfor a
period not exceedingflfteen (15) days, without incurring any liability for such
deferment.if the Procurersare unable to provide evacuationof power to be
gdnerated,due to reasonsoutsidethe reasonablecontrol of the P.rocurersor due
to inadequatedemandin the Grid.

6.3.3 The Seller may retakethe PerformanceTest by giving at least fifteen (15) days
advancenotice in writing to the Procurers,up to eight (8) times, during a period
ofone hundredand eighty (1s0) days(Tnitial PerformanceRetestPeriod") from
a Unit's coD in order to demonstratean increasedTested capacity ovet and
above as provided in Article 6.3.1 O). Provided however, the Procurersshall
have a right to require defermentof any suchre-testsfor a period not exceeding
fifteen (15) days, without incuning any liability for such deferment, if the
Procruersare unable to provide evacuationof power to.be generated,due to
rdasonsoutside the reasonablecontrol of the Procurers or due to inadequate
demandin the Grid.

6.3.4 (i) If unit,s Testedcapacity after the most recentPerformanceTest mentionedin

Article 6.3.3hasbeenConducted, is lessthaniis Installedcapacity(asexistingon
the Effective Date) the unit shall be de-ratedwith the following consequencesin
eachcasewith effect ftom the dateof completionofsuch most rqcenttest:

a)theUnil'slnstalledCapacrtyshallbereducedtoitsTestedCapacity,as
existing at the most recent PerformanceTest referred to in Article 6.3.3 and
capacity charges shall be paid with respect to such reduced contracted
Capacity;

b) Not Used

c) the seller shallnot be permittedto declarethe Availablecapacityof the Unit

at a level greaterthan its TestedCapacity;

d) the Availability Factorof the deratedunit shallbe calculatedby referenceto

. thereducedInstalledCapacity;'and

e) the capital cost and eachelementof the capital structure scheduleshall be

reducedin proportion to the reduction in the Installed capacity of the Power
Stationas a rcsult of that derating(taking into accounltle contractedcapacityof
any Unii whictr trasyet to be commissioned)'

Bajaj (2 X 45 MW) Kundarkhi Page45 of 128

cdii'-ele
U P'I,. C] L;
Sha'.ti S rrw.ra Bxttl,
 (ii) If at the end of Initial PerformanceRetestPeriod or the date of the eighth
Performance Test mentionedin Article 6.3'3,whicheveris earlier,, the Tested
capacity is lessthan the Installed capacity (as existing on the Effective Date)the
consequences mentioned in Article 8.2.2 shall apply for a period of one year'
Providedthat such consequences shall apply with respectto the TestedCapacity
existing at the end of Initial PerformanceRetestPeriod or the date ofthe eighth
PerformanceTest mentionedin Article 6.3.3,whicheveris earlier

6.3.5 lf Unit's TestedCapacityas at the end of the Initial Performance

RetestPeriod or the date of the eighth PerformanceTest mentionedin Article
6.3.3,whicheveris earlier,is found to be more than it's InstalledCapacity(as
existing on the Effective Date) , the TestedCapacity shall be deemedto be the
Unit's Installed capacrty. if any Procurer/salgreesand intimatesthe sameto the
seller within thirty (30) daysof receiptofthe resultsofthe last PerformanceTest
to purchaseninety percent (90%) of such excess Tested Capacity and also
provide to the seller additional Letter of credit and collateral Anangement(if
applicable) for payments in respect of ninety pelcent (900/0)of such excess
Tested Capacity agreed to be purchasedby such Procurer/s. In case the
procurer/s decide not to purchaseninety percent (90%) of such excessTested
Capacity,the Seller shall be free to sell suchexcessTestedCapacityto any third
party and the Unit's Contracted Capacrty shall remain unchanged,
notwithstandingthat the TestedCapacityexceededthe lnstalled Capacity'

Providedthat in all the aboveevents,the Seller shall be liable to obtairVmaintain

all the necessaryconsents(includilg Initial Consents),permits and approvals
including those required under the environmentallaws for generationof such
excessTestedCaPacitY.

6.4 CostsIncurred

The Seller expressly agreesthat all costs incured by him in synchronising,

connecting, Commissioningand / or Testing or Retesting of a Unit shall be
solely anJ completely to his accountand the Procurer's or Procurers' liability
shall not exceedthe amount of the Energy Chargespayable for such power
asset out in Schedule7'

c g.tr.
Shaiiti lJJai?aJ Edt["

BajajQ x 45 Kundarkhi
6.5 Fuel

The responsibility for arrangementofFuel shall be with the Developerwho shall

procure the Fuel under coal linkage granted to the Seller by the Central
Govemmenton the recommendationsof GoUP . In caseof any short supply ,
procurementof fuel indigenous/ importedpreferablythrough long term contract
or on spot-purchase/ short-termcontract/ E-auction basis from dornesticand/or
internationalsuppliers/traders shall be within or outside India. The seller shall
obtainthe prior consentof Lead Procureraboutprocurementof coal from any
sourceother than coal linkage' In casethe permissionis not grantedby the Lead
Procurer within seven (7) working days from the date of receiving the
application, it would be consideredas de€medpermissionand if rejectedthen it
would be considered as procurer's inability to procure which would make
conditionsof clause4,4.3 of the agreedPPA applicableand loss of availability
due to rejected fuel quantity shall be taken in to account while computing
availabilityandfixed charges.

Sbalrti 3 ialvr J t{i!.

LB€llr..oE_r
ARTICLE 7 : OPERATION AND MAINTENANCE

The Partiesshall comply with the provisionsof the applicableLaw including, in

particular,Grid Code as amendedform time to time regardingoperationand
maintenanceof the Power station and all matters incidental thereto. Provided
however the Seller shall not schedulethe MaintananceOutageof a Unit when
anotherUnit of the Projectis shutdownor expectedto be shut down exceptunder
Force Majeure or when the operation of the Unit is not permissible due to
technicalconsideration.

CE

S h a l ' 1 ir l ' : a I r E r i l n
Luci'.uo$'

(2X 4sMW)
ARTICLE 8 : CAPACITY' AVAILABILITY AND DISPATCII

8.1 Tests
RepeatPerformance

8 . 1 . 1 The Procurers(ointly) may from time to time during the OperatmgPeriod, but only
if the Available capacrtyhas not beenone hundredper cent (100%) of the Installed
Capacrtyof the commissionedunits (excluding the unit(s) under plannedoutagefor
capital maintenancein consultationwith the Regional Power Committeeor SLDC)
evenfor one continuousperiod ofat leastttree (3) hoursduring any three continuous
months, require the Seller to demonstratea Unit's or (if all the Units have been
Commissioned,the Power Station's) Tested Capacity by carrying out a further
Performance Test (a ,.RepeatPerformanceTest") in accordance with this Alticle
8.1. A RepeatPerformanceTest shall be carriedout in accordancewith Schedule5,
savethat the test shall last twenty-four (24) hours insteadof seventytwo (72) hours'
Providedtllat if the TestedCapacityafter suchtest is less than one hundred percent
(100%) of the Installed Capacity (as existing on the Effective Date) of the
CommissionedUnit, the Seller shall also have a right to conductnot more than two
(2) RepeatPerformanceTest within a period six (6) months,by giving a notice of not
less than fifteen (15) days to the Ptocurers for each such test. Provided that the
Procurersshall have a right to require defermentof eachsuchre-testsfol a period not
exceedingfive (5) days, without incuning any liability for such deferment,if the
Procurersare unableto provide evapuationof power to be generated;due to reasOns
outsidethe reasonablecontrol of the Procurersor due to inadequatedemandin the
Grid.
8.1.2 The Procurers(ointly) shall give the Sellernot lessthan seven(7) days' adVance
written notice of the time when a RepeatPerformanceTest of a Unit (or if all the
Units have been Commissioned,of the Power Station's) is to begin. A Repeat
PerformanceTest may not be scheduledfor any period when the unit to be testedis
dueto ru:dergoa Scheduled Outage.
8.1.3 The Procurers (ointly) and Sellershalljointly appointthe Independent Engineerto
monitor the RepeatPerformanceTest and to certify the results in accordancewith
Article 8,2.
8.1,4 If the Sellerwistresto take Unit, out of servicefor repairbeforea RepeatPerformance
Test, it shall inform all the Procurersin writing before its scheduledstart of the
repairsand the estimatedtime requiredto completethe repairs,The Partiesshall then
schedulea MaintenanceOutagein accordancewith the Grid Codeto enablethe Seller
to cany out those repairs and in such a case,the Procurel.Sfiointly), requiring the
RepeatPerformanceTest, shall defer the RepeatPerformanceLest until suchUnit is
retumedto service following that MaintenanceOutage.Providedhowever the Seller
shall not schedulethe Maintenanceoutageof a unit when anotherunit of project is

(2x45MW) Page49 of 128

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LucktroE.
 shut down or expectedto be shut down except under force majeure or when the
operationof unit is not permissibledueto technicalconsideration.
8,1.5 The Procurersrequiring the RepeatPerformanceTest, may jointly' for reasonable
cause,defer any RepeatPerformanceTest for up to fifteen (15) days from the date
originally notified to tlre Seller in accordancewith Article 8.1'2 if such Procurers
jointly notify the Seller in ttiting at leastone (1) day before the RepeatPerformance
Test startsofthe reasonfor the defenal andwhen the test is to be rescheduled.

Providedthat, such defermentat the joint requestof the Pfocurers shall be permitted
only oncein respectofeachof theRepeatPerformance Tests'

8.1.6 The Seller (individually), the Procurers(ointly) and the IndependentEngineer

(individually) shall each have the right to designate qualified and authorised
representatives(but not more than three each) to monitor the RepeatPerformance
Test.
8.1.7 Testingand measurement proceduresappliedduring the RepeatPerformanceTest
shall be in accordancewith the codes,practicesof proceduresas generally/normally
appliedfor the Performance Tesls.
8.1.8 Wittdn frve (5) daysof a RepeatPerformance Test,the seller shall provideeachof
the Procurersandthe IndependentEngineerwith copiesofthe detailedtest results.

g.1.9 within one (1) Month of the dateby which all the Units havebeencommissioned,
the Seller shall conducta PerformanceTest of the Power Stationftereinafter referred
to as..PowerStationPerformanceTest") whereffisl ths provisionsof Article 8,2 shall
apply. A Pow.erStation PerformanceTest sha1lbe canied out in accordancewith
Article 1.1 of Schedule5 , savethat the test shall lasl twenty-four (24) hours instead
of seventytwo (72) hours.

8.2 Derating

8.2.1 A RepeatPerformanceTest shall be concludedwhen all lhe Procurersreceivethe

Final Test Certificate of the IndependentEngineer stating that the Repeat
PerformanceTest has been carried out satisfactorilyin accordancewith sghedule5
and certified the Unit's (or if all the units have been.commssioned,the Power
station's) then current Testedcapacity as demonsfiatedby the results of the Repeat
Performance Test.

8.2.2 (i) If a Unit's (or if all the Units havebeenCommissioned, of the PowerStation's)
then cunent TestedCapacityas establishedby the Repeat Performance Test and the
Final Test cprtificate issuedby the IndependentEngineer,is less than its Installed
Capacityasexisting on the Effective Date,the Seller shall not be permittedto declare
the Available Capacrtyof the Unit (or if all the Units havebeenCommissioned,of the
PowerStation's)at a level greaterthanits TestedCapacity,in which case:
Page50 of 128

Sbi. ri !.;:"i.r:r Erttn

LucklroXh
 a) the Unit's (or if all the Units have been Commissioned,of the Power Station's)
InstalledCapacityshall be reducedto its mostrecentTestedCapacity.

b) Not Used;

the Availability Factor of the derated Unit (or if all .the Units have been
c) 'Commissioned,
of the Power Slation's ) shall be calculatedby referenceto the
reducedInstalledCapacity,and:
d) the Capital Cost and each element of the Capital Structwe Scheduleshall be
reducedin proportion to the reduction in the Installed Capacrtyof the Power
Station as a result of that derating(taking into accountthe Installed Capacityof
anyUnit which hasyet to be Commissioned);

(ii) The consequences mentionedin sub-Article(i) above shall apply from the
completion date of each RepeatPerformanceTest.' If at the end of secondRepeat
PerformanceTest conductedby the Seller or the last date of the end of the six month
periodreferredto in Article 8.1.1,whicheveris earlier,the TestedCapacityis less
than the Installed Capacrty(as existing on the Effective Date ), the consequences
mentionedin Article 8.2.2 shall apply for a period of at leastone year after which the
Sellershall havethe right to undertakea RepeatPerformanceTest.Providedthat such
consequences shall apply with respectto the TestedCapacity existing at the end of
secondRepeatPerformanceTest conductedby the Seller or the last dateof the end of
the six monthperiod referredto in Article 8.I .1, whicheveris earlier

8.2,3 If the IndependentEngineercertifies that it is unableto give a Final Test certificate

because events or circumstancesteyond the seller's reasonable control have
preventedthe RepeatPerformance.Test from being canied out in accordancewith
schedule 5, the Procurersshall reschedulea RepeatPerformanceTest as soon as
reasonably practicable.

8.2.4 If a Unit's-or if all the units have beencornmissioned,of the Power station's ,
TestedCapacity is found to be more than it's Installed Capacity,the provisions of
A-rricle6.3.5shallapplymutatismutandis.

8.3 Availability

The Seller shall comply with the provisions of the applicable Law regarding
Availability including, in particular, to the provisions of the ABT and Grid Code
relatingto intimation of A andthe mattersincidentalthereto.
t .,.

'1
(2 X 45 MW) Kundarkhi 1"v:l ll 5l of 128
Luck0on.
i, r\v;rtp
 Dispatch

The Seller shall comply with the provisionsof the applicableLaw regardingDispatch
Instructions,in particular, to the provisions of the ABT and Grid Code relating to
Dispatchandthe mattersincidentalthereto.

S h a Lr i ; , , { - i a D t t n ,
luoLDot.

Bajaj(2x 4s MW)
ARTICLE 9 : METERING A}{D ENERGY ACCOUNTING

9.1 Meters
For installation of Meters,Meter testing,Meter calibration and Meter readingand all
mattersincidental thereto,the Seller and the Procurersshall follow and be bound by
the Cenhal Electricity Authority (Installation and Operationof Meters) Regulations,
2006,the Grid code and ABT asamendedandrevisedfrom time to time. In addition,
the Seller shall also allow and facilitate sTU in installation of one set of required
main and standbyspecialenergymetersfor accuratsrecording of energysuppliedby
Seller.For thesesTU meters( 1I 0V, I A, 4-wire), the seller shall providethe required
cormectionftom EHV current transformers/ bushing CTs/ voltage traasformers/
CVTs on EHV side of all generator-transformers, station transformersand outgoing
lines, of meter accuracy of 0.2 class or better. The Seller may install any further
metersfor its own comfort at its own cost.

9.2 RLDC i SLDC Charges

All schedulingandRLDC / sLDC chargesapplica.bleshall be bome by the Procurers.

BajajQ 45 MW) Kundarkhi Page53 of 128

ARTICLE 10: INSURANCES

10,1 Insurance

The Seller shall effect and maintainor causeto be effectedand maintainedduring the
ConstructionPeriod and OperatingPeriod , Insurancesagainstsuch risks, with such
deductiblesand with such endorsements and co-insured(s),which the Prudentutility
Practiceswould ordinarily merit maintenanceof and as requiredunderthe Financing
Asreements.

10.2 Application of InsuranceProceeds

Saveas expresslyprovidedin this Agreementor the Insurances. the proceedsof any

insuranceclaim made due to loss or damageto the Project or any part of the Project
shall be first appliedto reinstatement,replacementor renewalof suchlossor damage.

If a Natural Force Majeure Event rendersthe Project no longer economically and

technically viable and the insurersunder the Insurancesmake payrnenton a "total
losso'or equivalent basis, the Procurer(s)shall have no claim on such proceedsof
suchInsurance

10.3 Effect on liability ofthe Procurers

Notwithstandingany liability or obligation that may arise underthis Agreement,any

loss, damage,liability, payment,obligation or expensewhich is insuredor for which
the Seller can claim compensation,under any Insuranceshall not be chargedto or

r ,;'i'1,1Lx

Sbak ti i,l.lai?atr EKtl"

LucknoB"
ARTICLE 11 : BILLINGAND PAYMENT

11.1 General

From tle COD of the Unit, Procurersshall pay the Seller the Mon*rly Tariff
Payment,on or before the Due Date, comprising of Tariff for every Contract Year,
determinedin aicordancewith this Article 11 and Schedule7. All Tariff paymentsby
Procurersshall be in Indian Rupees.

Providedhowever,if Procurersavails ofany Electrical output from the Sellerprior to

the CommercialOperationDate("Infirm Power")of the Unit, then the costof Infirm
Powershall be the energychargecalculatedon the basisof cost.ofFuel andthe norms
of GrossStationHeat Rate,SecondaryFuel consumptionandNormativeAuxlliary
Consumption specified for calculation of Variable Charges during Stabilization
Period.

Provided that the Seller shatl inform to the Control Centre about its schedulefor
supplyof suchpower two hrs ahead(asa specialcase)to testingof the Unit.
Provided also that the start up power drawn by the Unit from the grid shall be
adjustedwith ex-busenergyandsuchenergyshall be billed to Procurersproportionto
its percentagesharein InstalledCapacity

ll.2 Delivery and contentof Monthly Bills

11.2.1The Seller shall issue to Procurera signed Monthly Bill for the immediately
precedingMonth.
Providedthat:
i. If the COD of the first Unit falls during the period betweenthe first (1st) day
and up to and including the fifteenth (l5th) day of a Month, the first Monthly
Bill shall be issuedfor the period until the last day of suchMonth' or
ii. If the COD of the first Unit falls after the fifteenth (15th) day of a Month, the
first Monthly Bill shall be issuedfor the period commencingfrom the COD of
'
the first Unit until the last day of the immediatelyfollowing Month.

Providedfurtherthat if a Monthly Bill is receivedon or beforethe second(2nd) day

of a Month. it shall be deemedto have beenreceivedon the second(2nd) Business
Day of suchMonth.

I L2,2 EachMonthly Bill andProvisionalBill shall include:

Arailability and energy accountfor the relevantMonth as per REA for Monthly

Sha'.r i iJ r;r.r:l Er|!r

 Bill andRLDC / SLDC's daily energyaccountfor ProvisionalBill;
ii. The Seller's computationof various componentsof the Monthly Tariff Payment
in accordance with Schedule7; and
iii. Supportingdata,documentsand calculationsin accordancewith this Agreement.

11.3 Paymentof Monthly Bills

I 1.3,1Procurersshallpay the amountpayableunderMonthly Bill on the Due Dateto such

accountoflhe Seller, as shall havebeenpreviouslynotified by the Sellerto Procurers
with Article 11.3.3below.
in accordance

In caseof paymentdefault, all paymentsmadeby the Procuretsshall be appropriated

by the Sellerin the following orderofpriority:
l. TowardsLate PaymentSurcharge,payableby the Procurers,if any;
2. Towardsearlier unpaidMonthly Bill, if any; and
3. Towardsthe then cunent Monthly Bill,

11.3.2All paymentsrequiredto be made under this Agreementshall only include any

deductionor set off for:

i, Deductionsrequiredby the Law; and

ii. Amounts claimed by the Procurers from the Seller, through an invoice duly
acknowledgedby rhe Seller, to be payableby the Seller, and not disputedby the
Sellerwithin thirty (30) daysof receiptof the said invoiceand suchdeductionor
set-off shall be madeto the extent of the amountsnot disputed.It is clarified that
the Procurersshall be entitled to claim any set off or deductionunderthis Article,
after expiry ofthe said 30 dayperiod.

Providedfurther, the maximum amountsthat can be deductedor set-off by all the

Procurers taken together (proportionateto their then existing Allocated
Contiacted Capacrtyin caseof each Procurer) under this Article in a Contract
. Year shall not exceedRupeesflnsert amountcalculatedasRs. 2.5 lacsper MW of
ContractedCapacrty]only, excepton accountof paymentsunder sub Article (i)
above.

11.3.3The Sellershall opena bankaccountat Lucknow(the "Designated Account")for all

Tariff Paymentsto be made by Procurersto the Seller, and notifr Procurersof the
details of such account at least ninety (90) days before the dispatch of the first
Monthly Bill to Procurers.Procurersshall instructtheir respectivebankersto makeall
paymentsunderthis Agreementto the DesignatedAccount and shall notifu the Seller
' ofsuch instructionson the sameday. Procurersshall also designatea bank accountat
Lucknowior paymentsto be madeby the Seller(includingSupplementary Bills) to

(2 X 45MW) Kundarkhi

u-P'P. d. L1
Sha' li 3:riraD Brtl.
 Procuiersand notis the Sel1erof the detailsof such accountninety (90) days before
theCOD of the first Unit.

1L3.4 In the event of delay in paymentof a Monthly Bill by any Procurerbeyond its Due
Date month billing, a Late PaymentSurchargeshall be payableby suchProcurerto
the Seller at the rate of one point two five percent(1.25%)per month as per UPERC
Regulations.

11.3.5For paymentof Bills of capacitychargeandenergychargestluoughthe lettetof credit

on presentation,a rebate of two percentQ%) shall be allowed, If the pal'rnentsare
madeother than through a Letter of credit but within a period of one months from
the date of presentationof bills by seller a rebate of l% shall be allowed as per
UPERCRegulations.

The aboverebatewilt be allowed only to those Procurerswho credit to Seller's

accotultthe fuIl MonthlY Bill.

Howeve! no rebateshall be payableon the bills raised on accounlof change in Law

relatingto taxes,dutiesandcess.

Il.4 PaymentMechanism
I1.4.1Letter of Credit:
EachProcurershall provide to the Seller,in respectof payment.ofits Monthly Bil'ls, a
monthly unconditional, revolving and inevocable letter of credit ("Letter of
Credit'), openedandmaintainedby eachProcurerfor presentationofL/C documents
in termsof Article 11.3.5,whichmay be drawnuponby the sellerin accordance with
shallprovidethe seller draft of the
ArticlesI 1.4.1.1tlfough I 1.4.1.5.The Procurers.
Letter of credit proposedto be provided to the Seller before the NTP. Further, the
Letter of credit shall be provided ftom the bank which is appointed as Default
EscrowAgent underthe DefaultEscrowAgreement.

11.4.1,1Not later than one (1) Month prior to the the ScheduledCOD or the Revised
scheduled coD (as applicable)'of the first unit, each Procurer shall through a
scheduledbank at Lucknow opena Letter of credit in favour of the Seller,to be made
operative from a date prior to the Due Date of its first Monthly Bill under this
Agreement.The Letter of Credit shall havea term of twelve (12) Months and shall be
renewedannually,for an amountequalto:

i) For the first ContractYear, equalto one point one (1.1) times the estimated
averagemontlly billing basedon NormativeAvailability;

X 45 MW) Kundarhi Page57 af 128

'XT,''.
g:tttl.
Silr\ii il ritir'ir
Luoklior3"
 ii) For eachsubsequentConhactYear, equalto the one point one (1.1) times the
estimatedaveragemonthly billing basedon Normative Availability.

Providedthat the Seller shall not draw upon such Letter of cfedit prior to the Due
Date of the relevant Monthly Bill, and shall not make more than one drawal in a
Month.

Providedfurther that if at any time, suchLetter of Credit amountfalls shortof the

amountspecifiedin Article 11.4.1.1or 11.4.1.8otherwisethanby reasonof drawalof
such Letter of Credit by the Seller, the relevant Procurer shall restoresuch shortfall
within fifteen(15) days.

11.4.1.2 Procruersshall causethe scheduledbank issuing the Letter of Credit to

intimate the Seller,in writing regardingestablishingof suchirrevocableLetter
of Credit.

11.4.1.3 In caseof drawalof the Letterof credit by the seller in accordance with the
terms of this Article I l 4.1, the amount of the Letter of credit shall be
. reinstatedin the marurerstatedin Article 11.4.2.3of this Agreement'

11.4.7.4 If any Procurerfails to pay a Monthly Bill or part theleof within and including
the Due Date, then, subjectto Article 11.6.7,the Sellermay draw upon the
Letter of Credit, and accordinglythe bank shall pay without any referenceor
instructionsfrom the Procurer,an amountequal to such Monthly Bill or part
thereofplus Late PaymentSurcharge,if applicable,in accordtmcewith Article
1.1.3.4 above,by presentingto the scheduled bankissuingthe Letterof Credit,
the following docunents:

i) A copy of the Monthly Bill which hasremainedunpaidby suchProcurer;

ii) A certifrcateftom the Seller to the effect that the bill at item (i) above,or
specified part thereof, is in accordancewith the Agreement and has
remainedunpaidbeyondthe Due Date; and
iir) Calculationsofapplicable Late PaymentSurcharge,if any.

Further, on the occurrenceof such an event as envisagedhereiq the Seller shall

immediatelyinform all the Procurbrsof the said failure of the Procurerto pay the
Monthly Bill or part thereof and shall sendregularupdatesto all the Procurers,which
shall not be lessthan one (1) in evely two (2) days, containing detailsof the amount
claimedby the seller as per the provisionsof this Article and pa]'me.ntsmadeby the
Procuterpursuantto suchclair\.

otlJr.

(2x45 Kundarkhi Page58 of

Lucl,!ow.
 For the avoidance of doubt it is clarified that the Seller shall not be entitled to
drawdown on the Letter of Credit for any failure of any Procwer to pay a
Supplementary Bill.

11.4.1.5 Procurersshall ensurethat the Letter of Credit shall be renewednot later than
forty five (45) daysprior to its expiry'
11.4.1.6 A11costsfelating to openlngand maintenanceof the Letter of credit shall be
borne by the Procurers,however, Letter of credit negotialion chargesshall be
bome andpaid bY the Seller'
11.4.1.7 Wherenecessary,the Letter of Credit may alsobe substitutedby an unconditional
and inevocablebank guaranteeor an equivaleirtinstrumentasmutually agreedby
theProcurersandthe Seller.
11.4.1.8 Upon fi.rlfilmentof the conditionsmentionedunderArticle ll.4'2.2 the Letterof
Creditamountas mentionedin Article 11.4.1.1shall be changedto one (1) tirne
the averageofthe Monthly Tariff Paymentsof the previousContractYear instead
of one point one (1.1) timesthe averageof the Monthly Tariff Paymentsof the
previousContractYear.

I 1.4.2CollateralArrangement

11.4.2.1As furthersupportfor eachProcurer'sobligations,on or prior'to the EffectiveDate,

each Procurer and the seller shall execute separate Tripartite Default Escrow
..Default Escrow Agreement") along with the Banker(s)
Agreement (referred as
designatedas Escrow Agent for the establishmentand operation of the Default
Escrow Account in favour of the Seller, through.which the revenuesof the relevant
Procurershall be routed and usedasper the terms of the Default EscrowAgleement.
Each of the Procurersand the seller shall contemporaneously with the executionof
the Default Escrow Agreemententerinto a separateAgreementto Hlpothecate Cum
Deed of Hypothecation, whereby each Procurer shall agree to hypothecate,tothe
Selleq effective from forty five (45) days prior 1o the ScheduledCOD or Revised
scheduled coD of the First unit (as applicable), the amountsto the extent as
required.forthe Letter of Creditas per Article 11.4.1.1routedthrough the Default
EscrowAccount in accordancewith the terms of the Agreementto HypothecateCum
Deed of Hypothecation. The Default Escrow Agreementsand the Agreement to
Hypothecate cum Deed of Hlpothecation axe collectively refeffed to as the
"collateral Arrangement".The minimum tevenueflow in any Month in the Default
EscrowAccognt shall be at leastequalto the amountrequiredfor the Letter of Credit
asperArticle I 1.4.1.1.

Providedthat the Procurersshall ensurethat the Seller has paripassuchargewith the

LC Banker on the revenues routed through the Default Escrow Account in
accordancewith the terms of the Agreement to Hypothecate Cum Deed of
Hypothecation,However, suchchargeshall be on the amounts,in excessof amounts,

Sha,rri
.Dja rrro EJtn,
Luc(!osf.
 which have already been chargedor agreedto be chargedprior to the date of the
executionof the Default EscrowAgreement

11.4.2.2 Ontheoccunenceof all of the following eventsin respectof anyProcurer:

(i)Aperiodofnotlessthantwo(2)yearsfromCoDofPowerStatiorr,has
and
elaPsed;

(ii) Such Procurerhas achieved,for its ability to honour its Tarilf Pa}ment
'A' or better,
obligationsto the seller underthis Agreement,a credit rating of
fiom a sEBI registeredIndian credit rating agencymutually agreedbetween
Seller and the Lender/s,consistentlyfor a period of at least thrrce(3) years;
. and

(iii) Immediatelyprior to the three(3) year period mentionedin sub-clause(ii)

above,for a period of at leasttwo (2) yearsthere hasbeenno Procwer Event
of Default underArticle 14 ofthe PPA, by suchProcuter,

SuchProcurershall intimatethe Selierin writing of the occurrenceof the sameand

its intenlion to discontinue the collateral Arrangement. If the seller desires to
continuewith the CollateralArrangement,it shall intimate the sameto the concemed
Procurerin writing within thirty (30) daysofreceipt of intimation from the concerned
procurerand in suchcasethe Seller shall be liable to bearthe costsofcontinuation of
the collateral Arrangementwith effect from such date. In casethe seller fails to
respondor agreesto discontinue,the Collateral Arrangementshall forthwith cease
and the Default Escrow Agreement and the routed through the Default Escrow
,Receivables'in accordancewith the terms.of the Agreementto
Account and the
Hypothecatecum Deedof Hypothecationshall standterminatedasper termsthereof.

Providedrhat in caseof any of conditionsmentionedunder(i), (ii) or (iii) in Article

11.4.2.2ceasesto be true, then within 90 days of the occuffenceof such event, the
Procurershall reinstatethe CollateralArrangement,at its own cost'

11.42,3 Letlerof credit will be replenishedfor the drawalsmade,before the next d]re date
from the date drawl of the Letter of Credit occurs, the Letter of Credit shall be
reinstatedto the requisite amount specified in this Agreement,and in the manner
specifiedin the Default EscrowAgreement'

11.5 Third PirtY Saleson default

I 1,5.INotwithstanding anything to the contrary contained in this Agreement,upon the

occulrgnceofan eventwherethe Procurerhasnot madepaymentby the Due Date of
an Invoice through the paymentmechanismprovided in this Agreement,the Seller
shallfollow the stepsasenumeratedin Articles11'5'2and 1l '5'3'
11.5.2On the occurenceof the eventmentionedin Article 11.5'l andaftergiving a notice
of dt least seven (7) days to the defaulting Procurer(s);the seller shall have the
obligation to offer twenty five (25) per cent of the contracted capacity pertainingto
- defaulting
sucli defaulting procurer f'Default Electriciry) to the other non
Procurers,The non defaulting Procurershave the right to receive the whole or any
part of such Default Electricity by giving a notice within a frfther two (2) Business
Days,in the following manner

a) In ratios equalto their then existingAllocated contracted capacitiesat t]re_same

Tariff as would have beenapplicableto the defaulting Procurer.Providedthat,
if any of the non-defaultingProcurer(s)does not elect to receive the Default
Electricity so offered,the Seller shall offer the balanceof the Default Electricity
to bther non-defaulting Procurer(s)at the same Tariff in proportion to their
additionalrequircmentasintimated.
b)Atalow-ertariffasmaybespecifiedbynon-defaultingProcurer(s)to9::)(1""1
. of their capacityrequirements,in descendingorder of the tariff. Providedthat,
the seller has the right to obtain tariff quotes from third party(s) for sale of
Default Electricity not requisitionedunder(a) above.The tariff quotesreceived
ftomnon-defaultingProcurer(s)andsuchthirdparty(s)shallberankedin
descendingorder of the tariff andthe Seller shall sell Default Electricity in such
descendingorder and in compliancewith Article 11,5.3, to the extent
applicable.

In case of both (a) and (b) above if non- defaulting Procurer(s)receive Default
Electricity, then, subjectto applicability of Article 11.4.2.2of this Agleement,such
non defaulting Procurer(s) shatl within seven (7) days of exercising the right of
of
election,,either open an additional Irtter of CrediVenhancethe existing Letter
Credit in accordansewith the principles set forth in Article 11.4or increasethe value
of escrow cover under the Default Escrow Agreement and related security under
part
Agreementto HypotJrecatecum deedof Hlpothecation secltle.payrnentfor that
of the Default Electricity assuchnon- defaultingProcurerelectsto receive.

Provided further within two (2) Months of such election by the non-defaulting
Procurer(s), unlessthe eventoutlinedin Article 11.5.7hasoccurred'suchProcurer(s)
with
shall open'aLetter of credit/enhancethe existing Letter of credit in accordance
the principles set forth in Article 11.4 and shall increasethe value of escrow cover
cum
underthe Default Escrow Agreementand related Agreementto Hypothecation
Deedof Hypothecation.Providedthat in casethe eventsmentioned in article 11.4.2.2
(i), (i0 ana (iii) are true, then the requirement with respect to Default Escrow
Xg."r-*t *d egreementto Hypothecatecum Deedof Hypothecationin this Article
ttlS.Z strattbi applicableasper Article l't'4'2'2'

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11.5.3If all the non defaultingProcurersdo not make the electionto receivethe Default
Electricity or a part tiereof, within two (2) BusinessDays of it being so offeredunder
and as per Articte 11.5.2,or all suchProcurersexpresslywaive their first right to
receive the same,the Seller shall have the right (but not the obligation) to make
availableand sell the Default Electricity or a part thereof to a third party, namely:
(a) any consumer,subjectto applicableLaw; or
(b) any licenseeunderthe Electricity Act, 2003;

11.5,4If the CollateralArangementis not fully rpstoredby the DefaultingProcurerwithin

thirty (30) days of the non-paymentby a Procurerof a lnvoice by its Due Date,the
provisionsofArticle 11,5.2andArticle 11.5.3shallapplywith respectto onehundred
(100) per cent of the ConhactedCapacity.Providedthat in casethe eventsmentioned
in Article 1l .4.2.2 (i), (ii) and (iii) are true, then this Article 11'5'4 shall be
applicableasper Article1,1,4,2:2.

11.5.5Providedthat,in the caseof Article 11.5.3or 11.5.4,the Sellershallensurethatsale

of power to the shareholdersof the Seller or any direct or indirect affiliate of the
ofthe Seller,is not at a price lessthan the EnergyCharges.
Seller/shareholders

I 1.5.6kl caseof tlird party salesor salesto any other non defaulting Procwersaspermitted
by this Article 11.5, the adjusf,nentof the surplus tevenue over Erlergy Charges
(applicableto the defaulting Procurer)atftibutable to such electricity sold, shall be
adjusledasunder:

(a) the surplusupto the Tariff shatl be used towards the extinguishmentof the
subsisting paymentliability of thedefaultingProcurertowardsthe Seller;and
(b) the surplusif any abovethe Tariff shall be retaintd by the Seller.

The liability ofthe defaulting Procurertowardsmaking CapacrtyChargepaymentsto

the Sellerevenfor electricity sold to third partiesor other non defaultingProcurersor
remainingunsoldduring suchperiodswill remainunaffected.ProvidedsuchCapacity
Chargepayment liability shall ceaseon the date which occurs on the Expiry of a
period of tlree (3) years and hundred (100) days from the date of occurrenceof a
ProcurerEvent of Default underArticle 14.2 (i), provided if prior to suchdate,such
ProcurerEvent of Default hasnot ceasedandregular supply of electricity for a period
ofat leastninety(90) continuousdayshasnot occurred;

11.5.7 Salesto any personor Party,otherthanthe defaultingProcurerunderArticle 11.5,

shall ceaseand regular supply of electricity to the defaulting Procuretin accordance
with all the prwisions of this Agreementshall commenceand be restoredon the later
of the two following datesor any datebeforethis dateat the option of Seller:

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 (a) the day on which the defaulting Procurerpays the amount due to the Seller
and renews the Letter of Credit and restores Default Escrow Account (if
applicable)asmentionedin Article I 1.4.2.1; or
(b) the date being '4" days ftom the date on which the defaulting Procurerpays
the amountdue to the Seller,where'k" daysshall be calculatedin accordance
with Schedule3.

11.6 DisputedBill

11.6.1If a Partydoesnot disputea Monthly Bill, ProvisionalBill or a Supplementary Bill

raised by the other Party within thirty (30) days of receiving it, such bill shall be

,r.u.,i*:ll,liTirli#*. payabte
amount under Bill,provisional
a Monthly Biuora
SupplementaryBill, as the casemay be, that Party shall, within thirty (30) days of
receiving such bill, issue a notice (the "Bill Dispute Notice") to the invoicing Party
settingout:
i) the detailsof the disputedamount;
ii) its estimateof what the correctamountshouldbe; and
iii) all writtenmaterialin supportof its claim.
11.6.3If the invoicing Party agreesto the claim raisedin the Bill DisputeNotice issued
pwsuantto Article 11.6.2,lheinvoicingPartyshallrevisesuchbill within seven(7)
d,aysof receiving such notice and if the disputing Party has alreadymadethe excess
. payment, refund to the disputing Party suchexcessamount within fifteen (15) days
of receiving such notice. In such a caseexcessamount shall be refrurdedalong with
interestat the samerate as Late PaymentSurchargewhich shall be applied from the
date on which such excesspaymentwas made to the invoicing Party and upto and
includingthe dateon which suchpal'rnenthasbeenreceived.
11.6.4If the invoicing Party does not agreeto the claim raised in the Bill Dispute Notice
issuedpursuantto Article ll ,6.2,it shall,within fifteen(15) daysof receivingthe Bill
DisputeNotice, fumish a notice to the disputingPartyproviding:
i) reasonsfor its disagreement;
ii) its estimateof what thecorrectamountshouldbe;and
iii) all written material in supportof its counter-claim.
11.6.5Uponreceiptof noticeof disagreement to theBill DisputeNoticeunderArticle 11.6.4,
authorisedrepresentative(s)or a director of the boardof directors/memberof boardof
eachParty shall meet and make best endeavoursto amicably resolve such dispute
within fifteen (15) days of receiving suchnotice of disagreementto the Bill Dispute
Notice.
11.6.6Ifthe Partiesdo not amicablyresolvethe Disputewithin fifteen (15) daysof receiptof
notice of disalreementto the Bill DisputeNotice pursuantto Article 11.6.4,the
mattershall be referredto DisputeResolutionin accordancewith Article 17'
11.6.7ln caseof DisputedBills, it shall be open to the aggrievedparty to approachthe
Appropriate Commissionfor Dispute Resolutionin accordancewith Article 17 and

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 also for intetim ordersprotectingits interestincluding for ordersfor interim payment
pending Dispute Resolution and the Parties shall be bound by the decision of the
AppropriateCommission,including in regardto interestor Late PaymentSurcharge,
if any directedto be paid by the AppropriateCommission.
11.6.8If a Disputeregardmga Monthly Bill, ProvisionalBill or a Supplementary Bill is
settledpursuantto Article l l.6 or by Disputeresolution mechanismprovided in this
Agreement in favour of the Party that issuesa Bill Dispute Notice, the other Party
shall refund the amount, if any inconectly chargedand collected from the disputing
Party or pay as required, within five (5) days of the Dispute either being amicably
resolvedby the Parties pursuantto Article 11.6.5 or settled by Dispute resolution
mechanismalong with interestat the samerate as Late PaymentSurchargeftom the
date on which such payment had been made to the invoicing Party or the date on
which suchpaymentwas originally due,asmay be applicable,
11.6.9For the avoidanceof doubt,it is clarifiedthat despitea Disputeregardingan Invoice,
the concemedProcurer sha1l,without prejudice to its right to Dispute, be under an
obligationto makepayrnen! of the lower of (a) an amountequalto simpleaverageof
last t}ree (3) Months invoices (being the un{isputed portion of such three Months
invoices) and (b) Monthly Invoice which is being disputed,provided such Monthly
Bill hasbeenraisedbasedon the REA andin accordancewith this Agreement.

ll.7 Quarterly and Annual Reconciliation

Partiesacknowledgethat all paymentsmade againstMonthly Bills, ProvisionalBill

and Supplementary Bills shall be subjectto quarterlyreconciliationat the begirning
of the following quaf,terofeach ContractYear and annualteconciliation at the endof
each Contract Year to take into accountREA, Tariff Adjusunent Payments,Tariff
RebatePayments,Late Payment Surcharge,or any other reasonablecircumstance
providedunder this Agreemenl.The Parties,therefore,a$ee that as soonas all such
datain rgspectof any quarterof a ConfuactYear or a firll Contract Year as the case
. may be has been finally verified and adjusted,the Seller and each Procurer shall
jointly sign such reconciliationstatement.Within fifteen (15) days of signingof a
reconciliation statement,the Seller or Procurer,as the case may be, shall raise a
SupplementaryBill for the Tariff Adjusnnent Paymentsfor the relevant quarter/
Contract Year and shall make payment of such SupplementaryBill for the Tariff
AdjustmentPaymentsfor the relevantquarte/CqntractYear. Late PaymentSurcharge
shall be payablein such a casefrom the date on which suchpaymenthad beenmade
to the invoicing Party or the date on which any palment was originally due, as may
be applicable.Any disputewith regardto the abovereconciliation shall be dealt with
1n rudththe provisionsof Article 17,

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11.8 Paymentof SupplementaryBill

Bi11")for paymenton
1l,8.1 EitherPartymay raisea bill on the otherParty("supplementary
accountof:
i) Adjustmentsrequiredby the RegionalEnergyAccount/ SLDC (if applicable);
ii) Tariff Paymentfor changein parameters,pursuantto provisions in Schedule
7; or
iii) Changein Law asprovidedin Article 13,
and suchBill shall bepaid by the other Party.

11,8.2Procurersshallremit all amountsdueundera Supplementary Bill raisedby the Seller

to the Seller's DesignatedAccount by the Due Date and notify the Seller of such
remittanceon the sameday. Similarly, the Seller shall pay all amountsdue under a
SupplementaryBill raised by Procurersby the Due Date 1o concernedProcwer's
designatedbank accountand notiff suchProcurer/sof suchpaymenton the samedan
For suchpaymentsby a Procurer,rebatesas applicableto Monthly Bills pursuantto
Article I 1,3.5shallequallyapply.

11.8.3h the eventof delayin paymentof a Supplementary Bill by eitherPartybeyondits

Due Dale, a Late PaymentSurchargeshall be payableat the sametermsapalicableto
the MonthlyBill in Article 11.3.4..

11.9 Paymentfor Start up Power

As ascribedin Article I ]. 1.

11.10 The copiesof all notices/offerswhich are requiredto be sent asper the provisionsof
this Article 11, shall be sentby eitherParty,simultaneouslyto all Parties.

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ARTICLE 12 : FORCE MAJEURE

l2.l Definitions

In this Article 12, the following termsshall havethe following meanings:

12.2 Affected Party

An affecied Party meansany of the Procurersor the Seller whoseperformancehas

beenaffectedby an eventof ForceMajeure.

An event of Force Majeure affecting the cTU/sTU or any other agentof Ptocurer,
which has alfected the InterconnectionFacilities, shall be deemedto be an event of
ForceMajeureaffecting Procwer/s

Any eventof Force Majeureaffectingthe performanceof the seller's contractors,

shall be deemedto be an event of Force Majeure affecting Seller only if the Force
Majeureeventis affecting and resuLtingin:

a. Late delivery of plant, machinery,equipment,materials,spareparts,Fuel, wateror

consumablesfor the Project; or
b, A delayin the performanceof any ofthe Seller's contractors.

Similarly, any event of Force Majeure affecting the performanceof the Procurers'
contractorfor the settingup or operatingInterconnectionFacilities shall be deemedto
be an event of ForceMajeure affecting Procurer/sonly if the ForceMajeure eventis
resultingin a delay in the Performanceof Procurer'scontractots'

12,3 ForceMajeure

A .Force Majeure' meansany event or circumstbnceor combination of eventsand

circumstancesincluding those stated below that wholly or partly prevents or
unavoidablydelaysan Affected Party in the performanceof its obligationsunderthis
agleement,but only if and to the extent that such events or circumstancesare not
within the reasonablecontrol, directly or indirectly, of the Affected Party and could
not have been avoided if the Affected Party had taken reasonablecare or complied
with PrudentUtility Practices:

(zx4s lrii -'iiril?d I l:tn.

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 i. Natural X'orceMajeure Events:

Act ofGod, including, but not limited to lightning, drought,fire and explosion(to the
extentoriginatingfrom a sourceextemalto the Site), earthquake, volcaaiceruptioru
landslide, flood, cyclone, typhoon, tomado, or exceptionally adverse weather
conditionswhich are in excessof the statisticalmeasuresfor the last hundred(100)
years,

ii, Non-NaturalForceMajeure Events:

l. Direct Non - Natural ForceMajeureEvents

a) Nationalization or compulsory acquisition by any Indian Govemmental
Instrumentality of any material assets or righrs of the Se1leror the Seller's
contractors;01
b) The unlawful, unreasonableor discriminatory revocation of, or refusal to renew,
any Consentrequiredby the Selleror any ofthe Seller's contractorsto perform their
obligations under the Project Documents ol any unlawfirl, unreasonablsor
discriminatory refusal to grant any other consent required for the development/
operation of the Project, Provided that an appropriatecowt of law declaresthe
revocationor refusalto be unlawful, unreasonableand discriminatoryand strikesthe
samedown.
c) Any other unla*firl, unreasonableor discriminatoryaction on the part of an Indian
GovernmentInstrumentality which is directedagainstthe Project. Providedthat an
appropriate court of law declares the revocation or refusal to be unlawfirl-,
unreasonable ard discriminatoryand shikesthe samedor'r'n.

2. IndirectNon - NaturalForceMajeureEvents

a) Any actof war (whetherdeclaredor.undeclared),invasion, armedconflict or act of

foreign enemy, blockade, embargo;, revolution, riot, insunection, tenorist or
military actioh;or

b) Radio active contaminationor ionising radiation originating from a sourcein India

or, resulting from another Indirect Non Natural Force Majeure Event excluding
circumstanceswhere the sourceot causeof contaminationor radiation is broughtor
has beenbrought into or near the site by the Affected Party or those employedor
engagedby the Affecled PartY.
c) Industrywide shikes and labor disturbanceshaving a nationwideimpact in India.

12.4 X'orceMajeure Exclusions

Force Majeure shall not include (i) any erent or circumstancewhich is within the
reasonablecontrol ofthe Partiesand (ii) the following conditions,exceptto the extent
that they areconsequences of an eventofForce Majeure:
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 a. Unavailability, late delivery, or changes in cost of the plant, machinery,
equipment,materials,spaxeparts,Fuel or consumablesfor the Project;

or their agents
b. Delay in the performanceof any contractor,sub-contractors
excludingthe conditionsasmentionedin Article 12,2;

c. Non-performanceresulting from normal wear and tear typically experiencedin

power generationmaterialsand equipment;

d. Strikesor labour disturbanceat the facilities ofthe Affected Party;

e. Insufficiency of finances or funds or the agreementbecoming onerous to

perform; and

f. Non-performancecausedby, or connectedwith, the Affected Party's:

i) Negligent or intentionalacts,errorsor omissions;

ii) Failure to comply with an Indian Law; or

iii) Breachof or defaultunderthis Agreementor any ProjectDocuments'

12.5 Notification of Force Majeure Event

The Affected Party shall give notice to the other Party of any event ofForce Majeure
as soon as reasonablypracticable,but not later than seven(7) days after the date on
which such Party knew or should reasonablyhave known of the com{nencementof
the event of Force Majewe. If an event of Force Majeure resultsin a breakdownof
communicationsrendering it urueasonableto give notice within the applicabletime
limit specifiedherein,then the Party claiming ForceMajeure shall give suchnotice as
soon as reasonablypracticableafter reinstatementof communications,but not later
than one (l) day after suchreinstatement. Providedthat suchnotice shall be a pre-
conditionto the Seller's entitlementto claim relief underthis Agreement.Suchnotice
shall include flrll particulars of the event of Force Majeure, its effects on the Party
claimingrelief andthe remedialmeafluesprcposed,The Affected Party shall give the
other Party regular (and not less than monthly) leports on the progress of those
remedial measuresand such other information as the other Party may reasonably
requestaboutthe situation.

The Affected Party shall give notice to the other Party of (i) the cessationof the
releyarrtevent of Force Majeure; and (ii) the cessationof the effectsof sucheventof
ForceMajeure on the performanceof its rights or obligationsunderthis Agreement,
assoonaspracticableafterbecomingawareof eachof thesecessations.

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12,6 Duty to perform and duty to mitigate

To the extent not preventedby a Force Majeure event pursuantto Article 12.3,the
Alfected Party shall continue to perform its obligationspursuantto this Agreement.
The Affected Party shall use its reasonableefforts to mitigate the effect of any event
ofForceMajeureassoonaspracticable.

12,7 AvailableRelief for a X'orceMajeure Event

Subjectto this Article 12:

(a) No Parryshall be in breachofits obligationspursuantto this Agreementto the

extent that the performanceof its obligations was prevented,hindered or
delayeddueto a ForceMajeureEvent;
(b) Every Party shall be entitled to claim relief in relation to a Forca Majeure
Event.in regardto its obligations,includingbut not limited to thosespecified
underArticle 4.5,
(c) For the avoidanceof doubt, it is clarified that no Tariff shall be paid by the
Procurersfor the part of ContractedCapacity affected by a Natural Force
Majeure Event affecting the Seller, for the duration of such Natural Force
Majeure Event. For the balancepart of the ContractedCapacity,the Procurer
shall pay the Tariff to the Seller,provided during suchperiod of Natural Force
Majeure Event, the balance part of the Power Station is declared to be
Available for schedulingand dispatchasper ABT for supply of power by the
Sellerto the Procurers.
(d) If the averageAvailability of the Power Station is reducedbelow sixty (60)
pprcentfor over two (2) consecutivemonthsor for any non consecutiveperiod
of four (4) monthsboth within any continuousperiod of sixty (60) months,as
a result of an Indirect Non Natwal ForceMajeure, then, with effect from the
end of that period and for so long as the daily averageAvailability of the
' Power Station continuesto be reducedbelow sixty (60) percentas a result of
an Indirect Non Natural Force Majgureof any kind, the Procurersshall make
paymentsfor Debt Sewice, subjectto a maximum of CapacityChargesbased
on Normative Availability; relatableto such Unit, which are due under tlle
Financing Agteementsand theseamountsshall be paid from the date,being
the later of a) the date of cessationof such Indirect Non Natural Force
Majeur.e Erent andb) the completionof sixty (60) daysfrom the receiptof the
Financing Agreementsby the Procurer(s)from the Seller, in the form of an
increasein CapacityCharge.ProvidedsuchCapacityChargeincreaseshall be
determinedby Appropriate Commissiononthe basis of putting the Seller in
the sameeconomicposition as the Seller would have been in casethe Seller
hbd been paid Debt Service in a situation where the Indirect Non Natural
ForceMajeurehadnot occuned.

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 Providedthat the Procurerswill have the above obligation to make payment
for the Debt Serviceonly (a) after the Unit(s) affectedby such Indirect Non
Natural Force Majeure Event has been Commissioned,and (b) only if in the
absenceof suchIndirect Non Natural ForceMajeure Event,the Availability of
suchCommissionedUnit(s) would haveresultedin CapacityChargesequalto
Debt Service.
e) If the averageAvailability of the Power Station is reducedbelow eighty five
(85) percentfor over two (2) consecutivemonths or for any non consecutive
period of four (4) months both within any continuous period of sixty (60)
months,as a result of a Direct Non Natural Force Majeure, then, with effect
ftom the end of that period and for so long asthe daily averageAvailability of
the Power Stationcontinuesto be reducedbelow eighty five (85) percentasa
result of a Direct Non Natural ForceMajeure of any kind, the Sellermay elect
in a written notice to the Procwers, to deem the Availability of the Power
Stationto be eighty five (85) percentfrom the end of such period, regardless
of its actualAvailable capaclty. In sucha case,the Procurersshall be liable to
make paymentto the Seller of CapacityChargescalculatedon such deemed
Normative Availability, after the cessation of the effects of Direct Non
Natural Direct ForceMajeure in the form of an increasein CapacityCharge'
Provided such Capacity Chargeincreaseshall be determinedby Appropriate
Commissionon the basisof puttingthe Sellerin the sameeconomicposition
as the'seller would have been in casethe Seller had been paid Capacity
Chargesin a situation where the Direct Non Natural Force Majeure had not
occurred.
(D For so long as the Seller is claiming relief due to any Non Natural Force
Majeure Event (or Natural Force Majeure Event affecting the Procurei/s)
,nder ihis Agreement,the Procurersmay from time to time on one (l) days
notice inspect the Project and the Seller shall provide Procurer's personnel
with accett to the Project to carry out such inspections, subject to the
Procurer;s personnelcomplying with all reasonablesafety precautionsand
standards.Provided firrther the Procurets shall be entitled at all times to
rqquest Repeat Performance Test, as per Article 8'1, of the Unit
Commissionedearlier and now affected by Direct or Indirect Non Natural
Force Majeure Event (or Natural Force Majeure Event affecting the
Procurer/s),where such Testing is possibleto be undertakenin spite of the
.Direct or Indirect Non Natural Force Majeure Event (or Natural Force
Majeure Event affecting the Procurer/s), and the IndependentEngineer
accepts and issues a Final Test Certificate certiSing such Unit(s) being
capableof delivering the Installed Capacity and being Available, had there
beenno suchDirect or Indirect Non Natur.alForce MajeureEvent (or Natural
ForceMajeureEvent affectingthe Procurer/s).In case,the Available Capacity
as establishedby the said RepeatPerformanceTest (provided that for such
RepeatPerformanceTest,the limitation imposedby Article 8'1'l shall not

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 apply) and Final Test Certificate issuedby the IndependentEngineeris less
than the Available Capacity coffespondingto which the Seller would have
been paid Capacity Chargesequal to Debt Service in case of Indirect Non
Natural Force Majeure Event (or Natural Force Majeure Event affecting the
Procurer/s),then the Procurersshall make pro-tata palment of Debt Servic€
but only with respectto suchreducedAvailability. For the avoidanceofdoubt'
if Debt Service would have been payable at an Availability of 60% and
puxsutmtto a RepeatPerformanceTest it is establishedthat the Availability
would have been 40Vo,then Procurersshall make payment equal to Debt
Servicemultiplied by 40% and dMded by 60%. Similarly, the paymentsin
caseof Direct Non Natural ForceMajeure Event (and Natural ForceMajeure
Event affecting the Procurer/s)shall also be adjustedpro-rata for reductionin
AvailableCapacity.
g) In case of a Natural Force Majeure Event affecting the Procurer/swhich
adversely affects the performance obligations of the Seller under this
Agreement,the provisionsof sub-proviso(d) and (0 shall apply.
(h) For the avoidanceof doubt, it is specified'thatthe chargespayableundertlis
Article 12 shall be paid by the Procurersin proportion to their then existing
Allocated ContractedCapacity.

12.8 Additionat Cqmpensationand Procurers' S-ubrogation

If the Se-lleris entitled whether actually or contingertly, to be compensatedby any

personother than the Procurersas a result of the occurrenceof a Non Natural Force'
MajeureEvent (or Natural ForceMajeureEvent affecting the Procurer/$ for which it
has receivedcompensationfrom the Procurerspursuantto this Article 12, including
without limitation, paymentsmadewhich paymentswould not havebeenmadein the
absence of Article 4.7.1,the Procurersshallbe fully subrogated to the Seller'srights
againstthat person to the extent of the compensationpaid by the Procurersto the
Seller. Providedthat in casethe Seller has actually received compensationfrom the
any person other than the Procurers as well as the Procurers as a result of the
occunenceof a Non Natural Force' Majeure Event (or Natural Force MajeureEvent
affecting the Procurer/s),then the Seller shall forthwith refund the compensation
receivedby it from the Procurelsbut only.to the extent of the compensationreceived
by the from any personother thanthe Procurers.

CE:

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 ARTICLE 13 I CHANGE IN LAW

13.l Definitions

In this Article 13,the following termsshall havethe following meanings:

13.1.1"Changein Lawu meansthe occunenceof any of the following eventsafter the date,
which is seven(7) daysprior to the Effective Date:

(i) The enactment, bringing into effect, adoption, promulgation, amendment,

modification or repeal,of any Law or (ii) a changein interpretationof any Law by a
CompetentCourt of law, tribunal or Indian GovemmentalInstrumentality provided
suchCourt of law tribunal or Indian GovernmentalInstrumentalityis final authority
underlaw for suchinterpretationor (iii) changein any consents,approvalsor licenses
availableor obtainedfor the Project, otherwisethan for default of the Seller, which
resultsin any changein any cost ofor revenuefrom the businedsofselling electricity
by the seller to the Procurersunderthe termsof this Agreement,or (iv) any changein
the costof implementingEnvironmentalMariagementPlan for the PowerStation

But shallnot include(i) any changein any withholdingtax on incomeor dividends

distributedto the shareholdersof the seller, or (ii) changein respectof uI chargesor
frequencyintervalsby an AppropriateComrnission.

13.r.2

l
l

Application and Principlesfor computingimpact of Changein Law

While determining the consequenceof Changein Law under this Article 13, the
Partiesshall have due regardto the principlethat the purposeof compensating the
Party affectedby suchchangein Law, is to restorethlough Monthly Tariff payments,
to the extentcontemplatedin this Article 13,the affectedParty to the sameeconomic
positionasif suchChangein Law hasnot occuned.

a) ConstructionPeriod
of capital cost of
As a result of any change in Law, the impact of increase/decrease
the project in the Tariff shall be as approvedby UPERC.In caseof Dispute, aticle
l7 shallapply.

Qajaj(2x asMw)

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b) OperationPeriod
As a result of Changein Law, the compensationfor any increase/decreasein revenues
oi costto the Seller shall be determinedand effective from suchdate,as decidedby
Appropriate commission whose decision shall be final and binding on both the
Parties,subjectto rights of appealprovidedunderapplicableLaw.

Provided that the above mentionedcompensationshall be payable only if and for

increase/ decreasein revenuesor cost to the Seller is in excess of an amount
equivalentto 1% of the Letter of Credit in aggregatefor a ContractYear.

13.3 Notification of Changein Law

13.3.1If the Selleris affectedby a change in Law in. accordancewith Arlicle 13.2 and
wishes to claim a Change in Law under this Article, it shall give notice to the
procurersof such change in Law as soon as rcasonablypracticableafter becoming
awareofthe sameor shouldreasonablyhaveknown of the Changein Law.

13.3,2Notwithstanding Article 13.3.1,the seller shallbe obligedto selvea noticeto all the
Procurersunder this ArtieIe 13,3,2if it is beneficially affected by a Changein Law.
Without prejudice to the factor of materialily or other provisions containedin this
Agreement,the obligation to inform the Procurerscontainedherein shall be material.
Provided that in case the Seller has not provided such notice, the Procurersshall
jointly havetheright to issuesuchnoticeto tle Seller.

13.3.3Any noticesewedpufsuantto this Article 13.3.2shallprovide,amongstotherthings,

precisedetailsof:
(a) The Changein Law; and
(b) The effbctson the Sellerof themattersrefenedto in Article 13.2.

13.4 Tariff Adjustment Paymenton accountof Changein Law

13.4.1Subjectto Article 13.2,the adjustmentin Monthly Tariff Paymentshall be effective
from:
(i) The date of adoption, promulgation, amendment'Ie-enactrnentor repeal of the
Law or C,hange in Law; or
(ii) The date, of order/judgment of the competent
'in court or tribunal or Indian
'Instrumentalily,
Govemmental if the Change Law is on accountof a changein
interpretationof Law.

13.4.2Thepaymentfor changesin Law shall be t}rough supplementaryBill asmentionedin

Article 11.8. However, in caseof any changein Tariff by reasonof Changein Law,
as determinedin accordancewith this Age€ment, the Monthly Invoice to be raised
by the Sellerafter suchchangein Tari.ff shall appropriatelyreflect the changedTariff.

Page73 of 128

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ARTICLE 14 : EVENTS OF,DEFAULT AND TERMINATION

lA.L SellerEvent of Default

The occunence and continuation of any of the following events,unless any such
eventoccurs as a result of a Force Majeure Event or a breachby Procurersof their
obligationsunderthis Agreement,shall constitutea SellerEvent of Default:
i) The failure to Commissionany Unit by the date falling twelve (12) Months after its
ScheduledCommercialOperationDate,or
ii) After flre commencementof eonstructionof the Project, the abandonmentby the
Selleror the Seller's ConstructionContractorsof the constructionof the Project for a
continuousperiod of two (2) Months and such default is not rectified within thitty
(30) days from the receipt of first notice from any of the P'rocurersor Procurers
(lointly) in this regard,or
iii) If at any time following a Unit being Commissionedand during its retest, as per
Article 8, such Unit's Tested Capacity is less than ninety two (92) percent of its
Installed Capacrty., as existing on the Effective Date, and such Tested Capacity
remains below ninety two (92) percent even for a period of three (3) Months

iv) ffi:ltf#""ial operation theSeller

Dateof all theUnitsof thePowerStation,
fails to achieve Average Availability of sixty five percent (65%), for a period of
twelve (12) consecutiveMonths or within a non-consecutive period of twelve (12)
Monthswithin any continuousaggregateperiod of thirty six (36) Months, or
v) The Sellerfails to make any payment(a) ofan amountexceedingRupeesOne (1)
Crore required to be made to Procurer/sunder this Agreement, within three (3)
Months after the Due Date of an undisputedinvoice /demand raised by the said
Procurer/son the Selleror @) ofan amountupto RupeesOne(1) Crorerequiredto be
madeto Procurer/sunderthis Agreementwithin six (6) Months after the Due Date of
an undisputedinvoice/demand,or
vi) Any ofthe representationsand warrantiesmadeby the seller in schedule 10 of this
Agreemen! being found to b€ untrue or inaccurate.Provided however, prior to
consideringany event specifiedunder this sub-articleto be an Event of Default, ttie
Procurers shallgive a noticeto the Sellerin writing ofat leastthirty (30) days,or
vii) lf the Setler:
a) Assigns or purportsto assignany of its assetsor rights in violation of this
Agreement;or
b) Transfers or novates any of its rights and/or obligations under this
agreement,in violation of this Agreement;or
viii) If(a) the seller becomesvoluntarily or involuntarily the subjectofany bankruptcyor
insolvencyor winding up proceedingsandsuchproceedingsremain uncontestedfor a
period ofthirty (30) days,or (b) any winding up or bankruptcyor insolvencyorder is
pasqedagainstthe Seller, or (c) the Sellergoesinto liquidation or dissolutionor has a

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 receiver or any similar officer appointedover all or subslantiallyall of its assetsoI
offrcial liquidator is appointedto manageits affairs, pursuantto Law,
Provided that a dissolutionor liquidation of the Seller will not be an Event of
Default if suchdissolutionor liquidation is for the purposeof a merger,consolidation
or reorgardzationand retains creditworthinesssimilar to the. Seller and expressly
assrimesal1 obligations of the Seller under this Agreementand is in a position to
perform them; or
lx) The Seller repudiatesthis Agreementand doesnot rectify suchbreachevenwithin a
period of thirty (30) daysfrom a notice from the Procurers(iointly) in this regard;or
x) Except where due to any Procurer's failure to comply with its material obligations,
the Seller is in breachof any of its material obligations pursuantto this Agreement
and such material breach is not rectified by the Seller within thirty (30) days of
receipt of first notice in this regard given by any of the Procurers or ?rocurers
(ointly) the Procurersto the Selleror by the Procurers.
xi) The Seller fails to complete/fulfill the activities/conditionsspecifiedin Article 3.1.2,
beyonda periodof 8 Monthsfrom the specifiedperiodin Article 3.1.2andthe right
oftermiriation underArticle 3,3.2is invokedby the Procurers(ointly); or
xii) Not Used
xiii) Nbt Used
xiv) Occunenceof any other event which is specifiedin this Agreementto be a material
breaclr/default of the Seller.

14.2 Procirer Event of Default

The occunenceandthe continuationofany ofthe following events,r.mless any such

event occurs as a result of a Force Majeure Event or a breachby the Seller of its
obligationsirnderthis Agreemen! shall constitutethe Event of Default on the part of
defaultingProcurer:
| ,e, a"fuulting Procurerfails to pay (with respectto a Montlrly Bill or a
SupplementaryBill) an amountexceedingfifteen (15%o)ofthe undisputedpart
of the most rccent Monthly/SupplementaryBill for a period of ninety (90)
days after the Due Date and the Seller is unable to recover the amount
outstandingto the Seller through the Collateral Arrangementand Letter of
Credit;or
ii) The defaulting Procurerrepudiatesthis Agreementand does not rectifl such
breachevenwithin a period of thirty (30) daysfrom a notice from the Sellerin
. this regard;or
iii) Except where due to any Seller's failure to comply with its obligations,the
defaulting Procure(s) is in material breachof any of its obligationspursuant
to this Agreementand suchmaterialbreachis not rectified by the defaulting
Procurerwithin thirty (30) days of receipt of notice in this regard from the
Sellerto all the Procurers;or
iu) Any ieptesentationand wanantiesmade by any of the Procurer in Schedule
10 of this found to be unhue or inaccurate. Provided
BajajQX45 MW) Kundarkli Page75 of 128

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 . however,prior to consideringany event specifiedunder this sub-anicleto be
an Event of Default, the Seller shall give a notice to the concemedProcurerin
writing of at leastthifty (30) days;or
v) If (a) any Procurer becomesvoluntarily or involuntarily the subject of any
bankruptcy or insolvency or winding up proceedingsand such proceedings
remain uncontestedfor a period of thirty (30) days, or (b) any winding up or
bankruptcyor insolvencyorder is passedagainstthe Procurer,or (c) the
Procurergoesinto liquidation or dissolution or has a receiver or any similar
officer appointedover all or substantiallyall of its assetsor official liquidator
is appointed to manage its affairs, pursurult to Law, except where such
dissolution or liquidation of such Procurer is for the pulpose of a merger,
consolidationor reorganizationandwherethe resultingentity hasthe financial
standing to perform its obligations under this Agteement and has
creditworthiness similar to such Procurer and expressly assumes all
obligationsof such Procurerunder this Agreementand is in a position to
perform them; or;
vi) Occurenceof any other event which is specified in this AgreemenJto be a
materialbreachor default of the Procurels'

14.3 Procedurefoi casesof Se[er Event of Default

14.3.1Upon the occurrenceand continuation of any Seller Event of Default under Article
. 14.1,the Procurersjointly shall have the right to deliver to the Seller a Procurer
Preliminary Default Notice, which shall specify in reasonable detail, the
giving rise to the issueof suchnotice.
circumstances

14.3.2Followingthe issueof ProcurerPreliminaryDefaultNotice,the ConsultationPeriod

of ninety (90) daysor suchlongerperiod asthe Partiesmay agree,sha1lapply.

14.3.3During the ConsultationPeriod,the Partiesshall, saveas otherwiseprovidedin this

Agreemenlcontinueto performtheir respective obligationsunderthis Agreement.
14.3.4Within a period of seven(7) days following the expiry of the ConsultationPeriod
unlessthe Parties shall have otherwiseagreedto the conhary or the Seller Event of
Default.giving rise to the ConsultationPeriod shall havebeenremedied,the Lenders
may exerciseor the Procurersmay requite the Lendersto exercisetheir substitution
rights and other rights providedfo them, if any, underFinancingAgreementsandthe
Procurerswould haveno objectionto the Lendersexercisingtheir rights if it is in

consonmcewith provisionsof Schedule17.Altematively,in casethe Lendersdo not

X 45 MW) Kundarkhi
 exercisetheir rights as mentionedherein above, the Capacity Charge of the Seller
shallbe reducedby 20% for the periodofSeller Eventof Default'

14,4 Termination for Procurer Eventsof Default

14.4.1 Upon the occunenceand continuationof any ProcurerEvent of Default pursuantto

Article 14.2(i), the Sellershallfollow theremediesprovidedunderArticles 11.5,2.

14.4.2 Withoutin any manneraffectingthe rightsof the seller underArticle 74.4.1,onLthe

occurrenceof any ProcurerEvent of Default specifiedin Article 14.2 the Seller shall
havethe right to deliver to all the Procurersa seller Preliminary Default Notice, which
notice shdll speciff in reasonabledetail the circumstancesgiving rise to its issue.

14.4.3 Following the issueof a SellerPreliminary Default Notice, the ConsultationPeriodof

ninety (90) daysor suchlonger period asthe Partiesmay agree'shall apply'
14.4;4During the ConsultationPeriod,the Partiesshall continus to perform their respective
obligationsunderthis Agreement.

14.4.5(i) After a periodof seven(7) days following the expiry of the ConsultationPeriod
and unless the Parties shall have otherwise agXeedto the contrary or the Procurer
Event of Default giving rise to the CbnsultationPeriod shall havebeenremedied,the
seller shall be free to sell the then existing Allocated contracted capacity and
. associatedAvailabl.eCapacity of Procurer/scommitting Procurer/sEvent of Default
to any third party of his choice. Provided such Procurer shall have the liability to
make paymentsfor Capacity Chargesbasedon Normative Availability to the Seller
for theperiodthree(3) yearsfrom the eighthday afterthe expiry ofthe consultation
Period.Providedfurther that in suchthreeyear period, in casethe seller is ableto sell
electricity to any third party at a price which is in excessof the Energy Charges,then
such excessrealization will reduce the capacity charge payments due from such
ProCurer/s.For the avoidanceof doubt, the aboveexcessadjustmentwould be applied
on a cumulalive basis for the three year period. During suchperiod, the seller shall
use its best effort to sell the Allocated contracted capacity and associatedAvailable
Capacity of such Procurer generatedor capable of being generatedto such third
partiesat the most reasonableterms availablein the market at sYcllti_melhaving due
regardto the circumstancesat suchtime andthe pricing of electricity in the marketat
such time. Provided further, the Seller shall ensure that sale of power to the
shareholdersof the Seller or any diiect or indirect affrliate of the Seller/shareholders
of t{,reSeller,is not at a price lessthan the Tariff, without obtainingthe prior written

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 consentof suchProcurer/s.Suchrequestfor consentwould be respondedto within a
maximum period of 3 days failing which it would be deemedthat the Procurerhas
given his consent. Provided further that at the end of the three year period, this
Agreementshall automaticallyterminatebut only with respectto suchProcurer/sand
thereafter,suchProcurer/sshall haveno frrther CapacrtyChargeliability towmdsthe
Seller. Provided further, the Seller shall have the right to terminatethis Agreement
with respectto such Procurer/seven before the expiry of such three year period
provided on such termination,the future CapacityChargeliability of suchProcurer/s
shallceaseimmediately,

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(2 X 45 MW) Kundarkhi
ARTICLE 15 : LIABILITY AND INDEMNIFICATION

l5.l Indemnity

The Sellershall indemnify, defendandhold eachProcurerharmlessagainst:

(a) Any and all third party claims, actions, suits or proceedingsagainst the
Procurer/sfor any loss of or damageto property of suchthird party, or death
or qiury to suchthird party, arising out ofa breachby the Seller of any of its
obligations under this Agteement,exceptto the extent that any such claim,
'
action, suit or proceedinghasarisendueto a negligentact or omission,breach
of this Agreementor breach of st4tutory duty on the part of Procurers,its
conlractotsoservantsor agents;and

O) Any and all losses,damages,costsand expensesincludinglegal costs,fines,

penaltiesand interest actually sufferedor incurred by Procurer/s from third
party claims arising by reason of (i) breach by the Seller of any of its
obligations under this .Agreemen! (provided that this Article 15 shall not
apply to such breachesby the Seller, for which specific remedieshave been
provided for under this Agreemert) exceptto the extent that any such losses,
damages,costsand expensesincluding legal costs,fines, penaltiesand interest
(togetherto constitute "Indemnifiable Losses")has arisen due to a negligent
act or omissioq breachof this Agreementor breachof statutory duty on the
part of Procurers, its contractors, servants or agents or (ii) any of the
. representationsor warrantiesof the Seller under this Agreementbeing found
to be inaccurateor untrue.

Procurershallindemnif,,defendandhold the Sellerharmlessagainst:

(a) Any and all third party claims, actions,.suitsor proceedingsagarnstthe Seller,
for any loss of or damageto propertyof suchthird party, or deathor injury to
suchthird party, arising out of a breachby Procurerof any of its obligations
underthis Agreementexceptto the extentthat any such claim, action, suit or
proceeding has arisen due to a negligent act or omission, breach of this
Agreementor breachof statutoryduty on the part of the Seller,its contractors,
seryantsor agents;and

(b) Any and all losses,damages, costsand e{pensesincludinglegal costs,fines,.

penaltiesand interest('Indemnifiable Losses')actually sufferedor incuned by
the Sellerfrom third party claims arisingby reasonof (i) a breachby Procurer
of any of its obligationsunder this Agreement(Provided that this Article 15
shall not apply to suchbreachesby Procurer,for which specificremedieshave

Bajaj(2 X 45MW) Kundarkhi Page79 of 128

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 beenprovided for under this Agreement.),exceptto the extent that any such
Indeminifiable Losseshave arisendue to a negligent acJor omission,breach
'
of this Agreementor breach of statutory duty on the part of the Seller, its
contractors,servantsor agentsor (ii) any of the representationsor warranties
ofthe Procrnersunderthis Agreementbeing found to be inaccurateor untrue.

t5.2 Monetary Limitation of liability

A Party ("Indemniffing Party) shall be liable to indemnify the other Party

("Indemnified Party") under this Article 15 for any indemnity claims made in a
ContractYear only upto an amountof Rupees[Insert amount].:With respectto each
Procurer,the above limit of Rupees[Insert amount] shall be divided in the ratio of
their Allocated Conhact Capacityexisting on the dateof the indemnity c1aim.

15.3 Procedurefor claiming indemnity

15.3.1Third party claims

(a) Where the Indemnified Party is entitled to indemnification from the

IndemnifyingPartypursuantto Article 15.1.1(a)or 15.1.2(a),the IndemnifiedParty
shall promptly notiry the Indemnifring Party of suchclaim, proceeding,action or suit
refenedto in Article 15.1.1(a)or 15.1.2(a)in respectof which it is entitledto be
indemnified. Such notice shall be given as soon as reasonablypracticableafter the
Indemnified Party becomesaware of such claim, proceeding,action or suit. The
Indemniffing Party shall be liable to settle the indemnification claim within thifty
(30) tlaysof receiptofthe abovenotice.Providedhoweverthat,if:

(D ThePartieschooseto contest,defendor litigatesuchclaim,action,suit

or proceedings
in accordancewith Article 15.3'l(b)below;and

(ii) The claim amount is not required to be paid/depositedto such third

party pendingthe resolutionof the Dispute,

The Indemniffing Party shall become liable to pay the claim amount to the
Indemnified Party or to the third party, as the casemay be, promptly following the
resolutionof the Dispute, if such Dispute is not settledin favour of the Indemnified
Party.

(b) The IndemnifiedPartymay contest,defendandlitigatea claim,action,suit or

proceedingfor which it is entitled to be indemnifiedunder Article 15.1'l(a) or
15.L.2(a)and the indemniffing Party shall reimburseto the indemnified Party all
reasonablecosts and expensesincurred by the indemnified party. However, such
indemnified Pafty shall not settle or compromise such claim, action, suit or

: ,r?1tr Eitttt,
Lucknow.
 proceedingswithout first getting the consent of the indemniffing Party, which
consentshall not be unreasonablywithheld or delayed.

An Indemnifying Party may, at its own expense,assumecontrol ofthe defenceofany

proceedihgsbroughtagainstthe IndemnifiedParty if it acknowledgesits obligationto
indemnifi suchIndemnified Party, gives suchIndemnified Party prompt notice of its
intentionto assumecontrol of the defence,and eixploys an independentlegal counsel
at its own costthat is reasonablysatisfactoryto the Indemnified Pady.

15.4 IndemnifiableLosses

Wherean IndemnifiedPartyis entitledto IndemnifiableLossesfrom the Indemniffing

Partypursuantto Article 15.1.1(b)or 15.1.2(b),the IndemnifiedParty shallpromptly
notiff the Indemnifying Party of the Indemnifiable Losses actually incuned by the
IndemnifiedParty. The IndemnifiableLossesshall be reimbursedby the Indemnifiing
Party within thirty (30) days of receipt of the notice seekingIndemnifiable tosses by
the IndemnifiedParty, In caseof non paymentOf suchlossesafter a valid notice under
this Article 15.4,sucheventshall constitutea paymentdefaultunderArticle 14.

15.5 Limitation on Liability

Except as expresslyprovided in this Agreement,neither the Seller nor Procurersnor
their respectiveofficers, directors, agents,employeesor Afhliates (or their officers,
directors,agentsor employees),shatl be liable or responsibleto the other Party oI its
Affrliates, offtcers, directors,agents,employees'successorsor permitted assigns(or
their respectiveinsurers)for incidental,indirect or consequentialdamages,connected
with or resulting ftom performance or non-performanceof this Agreement, or
aqthing donein corurectionherewith,including claims in the natureoflost revenues,
incomeor profits(otherttranpaymentsexpresslyrequiredandproperlydueunderthis
Agreement),any increasedexpenseof reductionin or loss of power generation
productionor equipmentusedtherefore,irrespectiveof whethersuchclaims arebased
upon breachof waffanty, tort (including negligence,whether of the Procurers,the
Selleror others),shict liability, contfact,breachof statutoryduty, operationoflaw or
otherwise. Procurers shall have no recourse against any officer, director or
shareholderof the Seller or any Affiliate of the Seller or any of its officers, directors
or shareholdersfor such claims excludedunderthis Article. The Seller shall hbveno
recourseagainstany officer, director or shareholderof Procurers,or any affiliate of
Proc-urersor any of its officers, directors or shareholdersfor 'such ilaims excluded
underthis Article.

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Bajaj(2 X 45 MW) Kundarkhi Page81 of 128

ARTICLE 16 : ASSIGI\MENTS AND CHARGES

16.l Assignments

This Agreementshall be binding upon, and inure to the benefit of the Partiesand
their respective successorsand permitted assigns. Subject to Article 76.2, this
Agreementshall not be assignedby any Party (and no Party shall createor permit to
subsist any encumbranceover all or any of its dghts and beneflts under this
Agreement)other tlan by mutual consentbetween the Parties to be evidencedin
writing:
Provided that, such consentshall not be withheld if any of the Procurersseeksto
transferto any transfereeall of its rights and obligationsunderthis Agreement;and
(a) Suchtransfereeis either the owner or operatorofall or substantiallyall of the
distribution system of such Procurer and /or such transfereeis a successor
entity ofany of the Procurers;and
(b) This Agreementshall continue to remain valid and binding on such
. successor.

Sellershall be entitledto assignits rights and obligationsunderthis Agreementin

favor of the Selecteeduly appointedpursuantto the terms of Schedule17 of this
Agreement.

16.2 PermittedCharges

16.2.1Notwithstandinganything containedin Article 16.1, the Seller may createany

encumbranceover all or part of the receivables,PaymentMechanismor the other
assets.of the Project in favour of the Lendersor the Lender's Representativeon their
behalf,assecurityfor:

(a) Amountspayableunderthe FinaacingAgreements;and

(b) Any other amountsagreedby the Parties,
Providedthat:
I The Lendprsor the Lender's Representative on their behatf shall have agreed
in writing to the provisions of Schedule 17 of this Agreement;and
II Any encumbrancesgranted by the Seller in accordancewith this Article
16.2.1shall containprovisionspursuantto which the Lendersor the Lender's
Representative on their behalfagreesunconditionallywith the Selleracting
for itselfand astrusteeof theProcurersto releasefrom suchencumbrances all
. of the right, title and interestto Additional Compertsationso as to enablethe
Procuretsto claim its right of subrogation,For the purposesof this Article,
. Additional Compensationshall mean the compensationthat the Seller is
entitled, whether actually or contingently,to receive frorn the Procurersas

Bajaj(2 X 4s Mw)

:l:r::,,t*nnExin.
 well as compensatedby any person other than the Procurersfor the same

16.2.2 Arfrcle16.1doesnot applyto:

(a) Liens arisingby operationof law (or by an agreementevidencingthe same)

in the ordinary courseof the Sellercarryingout the Project;

(b) Pledgesof goods, the related documentsof title and / or other related
documents,arising or createdin the ordinary courseof the Sellercarrying out
the Project;or

G) Security arising out of retentionof title provisions in relation to goods

acquiredin the ordinary courseofthe Sellercanying out the Project.

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Bajaj (2 X 45 MW) Kundarkhi Page83 of 128

ARTICLE 17 : GOVERNING LAW AND DISPUTNRESOLUTION

l7,l GoverningLaw

This Agreementshall be govemedby and construedin accordancewith the Laws of

India.

17.2 AmicableSettlenent

17.2.1 EitherParty is entitledto mise any claim, disputeor differenceof whatevertrature

arisingunder,out of or in connectionwith this Agteementincluding its existenceor
validity or termination (collectively "Dispute") by gMng a written notice to the other
Party,which shall contain:
(D A descriptionof the Dispute;
(i1) The groundsfor suchDispute; and
(iiD All writtenmaterialin supportof its claim.

17.2.2The othel Party shall, within thirty (30) days of issue of dispute notice issuedunder
Article 17,2.1,furnish:

(r) Counter-claimand defences,ifany, regardingthe Dispute; and

(iD andcounter-claim.
All writtenmaterialin supportof its defences

17.2.3 Within thirty (30) daysof issueof noticeby any Partypursuantto Article 17.2.1or
Arhcle 17.2.2, both the Parties to the Dispute shall meet to settle such Dispute
amicably. If the Partiesfail to resolvethe Dispute amicably within thirty (30) days
of receipt of the notice referred to in the precedingsentence,the Dispute shall be
referredto DisputeResolutionin accordancewith Article 17.3.

17.3 DisputeResolution

17.3.1 Where any Dispute arises ftom a claim made by any Party for any changein or
detetminationof the Tariff or any matter related to Tariff or claims madeby any
Party which partly or wholly relate to any changein the Tariff or determinationof
any of such claims could result in changein the Tariff or (ii) relatesto any matter
agreedto be referredto the AppropriateCommissionunderArticles4'7.1,13,2,l8.l
or clause 10,1.3 of Schedule17 hereof, such Dispute shall be submittedto
adjudicationby the Appropriate Commission.Appeal againstthe decisionsof the
AppropriateCommissionshall be madeonly as per the provisions of the Electricity
Act, 2003,asamendedfrom time to time.

(2 X 45MW) Kundarkni Page84 of 128

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 The obligationsofthe Procurersunderthis Agreementtowardsthe Sellet shall not be
affectedin any mannerby reasonof inter-sedisputesamongstthe Procurers.

17.3,2 lf theDisputearisesout of or in connectionwith any claimsnot coveredin Artiole

17.3.1,suchDispute shall be resolvedby arbihationunderthe Indian Arbitration and
Conciliation AcL 1996 and the Rules of the Indian Council of Arbitration, in
accordancewith the processspecified in this Article. In the event of suchDispute
remaining unresolved as referred to in Article 17.2.3 hereof, any party to such
Dispute may refer the matter to registrar under the Rules of the Indian Council of
Arbihation.

(i) The Arbitration tribunal shall consistof three (3) arbitratorsto be appointedin
accordancewith the Indian Council of Arbitration Rules

(ii) The placeof arbitrationshall be Lucknow,Uttar Pradesh.The languageof the

arbitrationshall be English.

(iiD The arbitrationtribunalls award shall be substantiatedin writing, The arbitration

tribunal shall also decide on the costs of the arbitration proceedingsand the
allocationthereof.

(iv) The award shall be enforceablein any court having jurisdictioq subjectto the
applicableLaws.

(v) The provisions of this Clauseshall survive the ter'rninationof this PPA for any
reasonwhatsoever.

17.4 Partiesto Per{orm Obligations

Notwithstanding the existence of any Dispute and difference refened to the

AppropriateCommissionor the arbihal tribr$al as provided in Article 17.3 and save
asthe AppropriateCommissionor the arbitral tribunal may otherwisedirect by a final
or interim order, the Parties hereto shall continue to perform their respective
obligations(which arenot in dispute)underthis Agreement.
ARTICLE 18 : MISCELLANEOUS PROVISIONS

18.1 Amendment

This Agreement may only be amendedor supplementedby a written agreement

between the Parties and after duly obtaining the approval of the Appropriate
Commission, wherenecessary'

18.2 Third Party Beneficiaries

This Agreementis solely for the benefit of the Partiesand their respectivesuccessors
and permitted assignsand shall not be construedas creating qny du1y,standardof
careor any liability to, any personnot a party to this Agreement-

18.3 No Waiver

A valid waiver by a Pafty shall be in writing and executedby an authorized

representativeof that Party. Neither the failure by any Party to insist on the
performanceof the terms, conditions,and provisions of this Agreementnor time or
otherindulgencegrantedby any Party to the other Partiesshall act as a waiver ofsuch
breachor acceptanceof any variation or the relinquishmentof any suchright or any
otherright underthis Agreement,which shall remain in frrll force andeffect.

18.4 Entirety

18.4.1This Agreementandthe Schedules are intendedby the Partiesas tle final expression
of theii agreementand are intendedalso as a completeand exclusivestatementofthe
termsof their agreement.
18.4.2Except as provided in this Agreement,all prior written or oral understandings,ofters
or other communicationsof every kind pertainingto this Agreementor the sale or
purchaseof Electrical output and contractedcapacrty under this Agreementto the
Procurersby the Seller shall standsupersededand abrogated.

18.5 Confidentiality
The Partiesundertaketo hold in confidencethis Agreementand not to disclosethe
termsand conditionsofthe transactioncontemplatedherebyto tlird parties,except:
(a) To their professional
advisors;
(b) To their officers, contractors,employees,agentsor representatives,financiers;
l. who need to have accessto such information for the proper performanceof
their activities;or

45 MW) Kundarkhi Page86 of 128

{i!at..

c g. (P.
u.vi.\:.. Lt
Sl.ai.ti i:],i3.,vf,
a Brta.
LricknoE.
 (c) DisclosuresrequiredunderLaw.
without the prior written consentofthe otherParties.
Providedthat the Seller agreesand acknowledgesthat any of the Procurersmay at
any time, disclose the terms and conditions of the Agreement and the Project
Documentsto any person,to the extentstipulatedunderthe Law.

18.6 Aflirmation

TheSellerandProcurers,eachaffirmthat:

(D Neither it nor its respectivedirectors,employees,or agentshas paid or

undertakento pay or shall in the frrture pay any unla*flrl commission,bribe,
pay-off or kick-back; and

(ii) It has not in any other mannerpaid any sums,whether in Indian cr rercy or
foreign currency and whether in India or abroadto the other Party to procure
this Agreement,and the Sellerand Procurerhereby undetake not to engagein
any similar actsduring the Term of Agreement.

18.7 Severability

tre invalidity or enforceability,for any reason,of any parl of this Agreementshall not
prejudiceor aflect the validity or enforceability of the remainderof this Agreement,
unlessthe part held invalid or unenforceableis fundamentalto this Agreement'

18.8 No PartnershiP
None of the provisions of this Agreementshall constitutea partnershipor agencyor
any suchsimilar relationshipbetweenthe SellerandProcurers.

18.9 Survival
Notwithstandinganythingto the contraryherein,the provisionsof this Agreement,
including, Article 10.2 (Application of lnsuranceProceeds),Article 12 (Force
Majeure),Article 14 (Eventsof Default and Termination),Article 15 (Liability and
Indemnification), Article .17 including Atticle 17.3.2 (Governing Law and Dispute
Resolution),Article 18 (Miscellaneous), and other Articles and schedulesof this
Agreementwhich expresslyor by their naturesurvive the term or termination of this
Agreenent shall continueand survive any expiry or terminationof tlis Agreement.

18.10 Counterparts

This Agreementmay be executedin one of more counterparts,eachof which shall be

deemedan original and all of which collectively shall be deemedone and the same

5 MW) Kundarkhi Page87 of 128

g;t16.
lihai(ii -.itr;:!::
18.11 Notices

All noticesto be given under this Agreementshall be in writing and in the English
Language.
-.':

All noticesmust be deliveredpersonally,by relistered post oI any method duly

below:
acknowledgedor facsimile to the addresses

Seller:
Bajaj EnergyPrivateLimited
negister:edOffice : 2ndFloor, Bajaj Bhawarl JamnaLal Bajaj Marg, Nariman
Point,Mumbai-400021
CorporateOffice : B-10 Sector3, Noid4GautamBudhNagar(U'P.)
Pin- 201301

Procurerl:
ManagingDirector
PaschimanchalVidyrt Vitran Nigam Limited
HydelInspectionHouse,Hydel Colony,VictoriaParh Meerut-250001
Fax: 012l-2666062
Phone:0121-2665734

2:
Procurer
Director
lvlanaging
PoorvanchalVidyut VitranNigamLimited
VidyutNagar,BhiKraripur,P.O.DLW' Varanasi-221010
Fax: 0542-2319758
Phone:0542-2318437

Procurer3:
ManagingDirector
MadhyanchalVidlut Vitran Nigam Limited
4.AGhokleMarg, Lucknow-226001
Fax: 0522-2208769
Phone:0522-2208737

criP?
Shal.riI r ' r'1i1Exttr'
Lucknog;
Bajaj (2 X 45 MW) Kundarkhi Page88 of 128
Procurer4:
ManagingDirector
DakshinanchalVi$ut Vitran Nigam Limited
U{a Bhavan,NH - 2 (Agra - Delhi BypassRoad),Sikandra,Aga - 282002
Fax: 0522-2208769
Phone:0522-2208737

All hotices or communicationsgiven by facsimile shall be confirmed by sendinga

copy of the samevia post office in an envelopeproperly addressedto the appropriate
Party for delivery by registeredmail. All Notices shall be deemedvalidly delivered
upon receipt evidencedby an acknowledgementof the recipient, unless the Party
deliveringthe notice can ptove in caseofdelivery throughthe registeredpost that the
recipient refusedto acknowledgethe receipt of the notice despiteefforts of the post
authorities;.

Any Party may by notice of at least fifteen (15) days to the other Partieschangethe
addressand / or addressesto which suchnotices and communicationsto it are to be
deliveredor mailed.

18.12 Language
The languageof this Agreementand all written communicationbetweenthe Parties
relatingto this Agreementshall be in English.

18.13 Breach of Obligations

The Partiesacknowledgethat a breachof any of the obligationscontainedherein
would result in injuries. The Parties further acknowledgethat the amount of the
liquidated damagesor the method of calculatingthe liquidated damagesspecifiedin
this Agreementis a genuineand reasonablepre-estimateof the damagesthat may be
sufferedby the non-defaultingparty in bachcasespecifledunderthis Agreement.

18,14NominationRestriction
Notwithstandinganything containedto the contrary in this Agreement,wherevera
referenceiS made to the right of a Procurerto nominate a third Party to receive
benefits under.this Agreement, such Third Party ,shall have a financial standing
comparableto that of the Procurerin question.

18.1! CommercialActs
The Procurersand Seller unconditionally and irrevocably agreethat the execution,
delivery and perfonnanceby eachof them of this Agreementand those agreements
includedin the Collateral Arrangementto which it is a Party constituteprivate and
commercialactsratherthan or governmentalacts;

'rtl'J

Bajaj(2 X 45 MW) Kundarkhi Page89 of 128

LucLoow
 Liability
18.16 Restrictionof Shareholders/Owners

partiesexpresslyagreeand acknowledgethat none of the shareholdetsof the Paxties

heretoshall be liable to the other Partiesfor any of the contactual obligationsof the
concernedparty under this Agreemeht. Further, the financial liabilities of the
shareholder/sof eachParty to this Agreement,in suchParty, shall be restrictedto the
extentprovidedin Section426 ofthe IndianCompanies Act, 1956.

The provisions of this Article shall supercedeany other prior agreementor

understanding,whether oral or Written,that may be existing betweenthe Procurers,
seller, shareholders/owners of the seller, shareholders/owners of the Procurersor
the Seller before the date of this Agreement,regarding the subject mattel of this
Agrbement.

or Indirect Losses
18.17 No Consequential

The liability of the Seller and the Procurersshall be limited to that explicitly provided
in this Agreement. Provided that notwitlstanding anlthing contained in this
Agreement,under no event shall the Proburersor .theseller claim from one anothet
any indirect or consequentiallossesor damages.

IN WITNESSIyHEREOFthe Partieshaveexecutedthesepresentsthroughtheir authorized

at Lucknow
representatives

For and on behalf of For andon behalf of

[THE Seller]

Signaturewith seal Signature K/ ,vlA'f.

y6n+rDR7
Witness:n
t. rlffir++ / E4r,'v-
->-"n---a-QAn'4
| ,:i
r-rl,
Llr ((pA)
cE. (P.P.A.t
Kundarkhisbalrti Jhrwa:r Exttr. Page90 of 128
QX4s
Luck[ow.
For and on behalf of
[Procwer2]

Sisnaturewith Seal

Witness:,^
t/t,..-"='a-
r. t 9.(-{**rr.<*;1t-fl4114-

v€ (?t A)

For andon behalfof

Signaturewith seal

witness: {b"*-'+-
1. (E.etPr.o€f )lkw X-

2. lYe&4
eaa^24'r:-*)Eu
For andon behalf of

Sisnaturewith seal

Witness: rht**-'--,rl-
a,

1. U-P.Qa-xo47 ffi(L+

2. fit,"-l
taffilt
'.-
11
/
\]r
cE. (P.P,A,l
.IJ.
P, F, {. LI

BajajQ.x 45 Kundarkhi Page91 of

Luokuow,
 SCHEDULE1 : NAMESAND DETAILSOF THE PROCURERS

ProcurerI :
ManagingDirectot
. PaschimanchalVidyut Vitran Nigam Limited
Hydel InspectionHouse,Hydel Colony,VictoriaPark,Meerut-250001
Fax: 0127-2666062
Phone:0121-2665734

Procurer2:
ManagingDirector
PoorvanchalVidyut Vitran Nigam Limited
Vidyut Nagar,Bhikharipur,P.O. DLW Y aranasi-221010
Fax:0542-2319158
Phone:0542-2318431

Procurer3:
ManagingDirector
MadhyanchalVidyut Vitmn Nigam Limited
4A Ghokle Marg, Lucknow-226001
' Fax: 0522-2208769
P]none0522-2208737

Procurer4:
ManagingDirector
DakshinanchalVidyut Vihan Nigam Limited
Urja Bhavan,NH - 2 (Agp - Delhi BypassRoad),Sikandra'Agra - 282002
Far': 0522-2208769
Phone:0522-2208737

Luoktros'

Bajaj(2 X 45 MW) Kundarkli Page92ot 128

 1A SCHEDULElA: SITE

2x45 MW Thermal Power Plant is being set up by M/s Bajaj Energy PrivateLtd.
on the surplusland , measuringabout 23.36 acres.of SugarMill - Kundarkhi
situated in Village-Kundarkhi, Post Office-Govindpar4 Tehsil and District -
Gonda. The site is located at about 4'0 KM from Darjikuan on Gonda -
Mankapur Road. The nearestRailway Station is Motiganj which is situatedat
about3.0 KM from the site.

ShaktitlhnwanExtt*
Llr,t kjto $/,

Bajaj (2 X 45 MW) Kundarkhi Page93 of 128

 SCHEDULE 2: INITIAL CONSENTS
.Thefollowing clearanceshavebeen/ will be obtainedwith respectto the Unit: -

sl. Clearances Clearing Authority

No.
1 Signingof MOU GoUP

Water availability Groundwater shall be used

StateGovemmentClearance GoUP/UPPCL
approvalof FeasibilityReport

A
Pollution Clearance(Watsr & U.P.PollutionControlBoard
Ai0
5 EnvironmentalClearance Ministry of Environmentand
Forests(GoI) / U.P.Agency

6 ForestClearance GoUP/ Departrnentof Forests

7 Civil Aviation Clearancefor National Airport Authority /

ChimneyHeight IndianAir Force

8 CompanyRegistration Registrarof Companies

9 Approval of PPA andvarious UPPCL/UPERC

project agreements

l0 ProjectCost / Tariff Approval UPPCL/ UPERC

l1 Rehabilitation& Resettlement Not Required

of displacedFamiliesby Land
Acouisition

1,2 Land Availability SurplusLand of SugarMill

13 Fuel Linkage Ministry of Coal (GoI)

l4 Financing FinancialInstitutions

15

\j..-, .
,!.'
c.i I
; l:: I

'i_;
ry
!" ,v
nn7---:.
{l

sbo,otiil.t ,'o
't't E *to ' st
Bajaj(2 X 45 MW) Kundarkhi Page94 of 128
 SCHEDULE3 : CALCULATION OF'X' DAYS

(ReferArticle 11.5.7)

Bajaj(2 X 45 MW) Kundarlfti Page95 of 128

 SCHEDULE 4 : FUNCTIONAL SPECIFICATION

MECHANICAL
Coai Handling Plart - Capacity : 160TPH ( 12Hrs working)
Plant Requirement: 72 TPH
ExecutionType : Tum Key ( excludingCivil work )
SiesmicZone : 4 for all the sites.
Coal - F Grade
GCV -3865 kcal/kg

Boiler -
CFBCBoiler, 190TPH steam,pressure1l0(a) bar,
Temperature- 540 Deg C at superheateroutlet.

Turbine - STG nominally rt'tad 45 MW gross output each with four

uncontrolledextractionfor HP heaters(2 nos), deareatorand a LP
heaterrespectivelyasper manufacturersstandard.

Ash Handling Plant -

The coalconsumption per Boileris 35 tones/hr.andthe ashcontent

of coal is 44% andthus the total ashgeneratedper boiler is 15.4
TPH. The ash handling system is pressuretype pneumatic
conveyingfor handlingfor both bed ash and fly ash from bed ash
hopper.

DMPlant-
RO + DM and softenerplant, Capacity- l2M3/hr

CoolingTower -
Induceddraughtcounterflow coolingtower,Capacity-
16000M3/hr.No. of cells(6)

II
il
II drtn'
Shairti li:a 'van'
Luckno{'

Bajaj (2 X 45 MW) Kundarkhi Page96 of 128

 B. ELECTRICAL

S No. Description Particulars

(a) Grid Conditionsat Interconnection
point

(i) Voltage :Nominal KV I r32l

vananon % [ (+)5%]
(ii) Frequency:Nominal Hz. 150 l
Variation % [ (+)3%to
(-)svo)
(iii) CornbinedVoltage and Frequencyvariation
for ContractedCapacity % lr0%)

(iv) PowerFactor Nominal [0.8s]lag

Variation [0.8s]to [ 0.9s]
lag lead
(v) Basic ImpulseLevel (Peak) KV I r42sl
(b) Fault Levels:

(i) 3 Phase Maximum KA [40]

(ii)Clearancetime Maximum ms [ 1000]

Sba'(ti3:uri"n Eat '

Luckoog.

Bajaj(2 X 45 MW) Kundarkhi Page97 of 128

 SCTIEDULE5 : COMMISSIONING AND TESTTNG

I .1 PerformanceTest
(i) (a) The PerformanceTest shall be conductedunder any and
all ambient
conditions(temperaturqhumidity etc.) and any and all Fuel qualities trrat
may exist during the time of the performanceTest and no correctionsin
'
final gross output of trre unit will be arlowed as a result of preva ing
ambientconditionsor Fuelqualitv.
(b) The correction curves will only be used if the Grid System
operation
duringthe Performance Testexceedselectricalsystemlimits,
(c) The PerformanceTest shall be deemedto have demonstmtedthe Instaled
capacity of the unit under all designed conditions and therefore no
adjustments shall be made on account of fuel quality or ambient
conditions.
(d) The seller shall perform in respectof eachunit a performanceTest,which
such unit shall be deemedto have passedif it operatescontinuouslyfor
seventytwo consecutivehours at or aboveninety five (95) percentof its
Installed Capacity ,as existing on the Effective Date and within the
electricalsystemlimits and the FunctionalSpecifications.
(ii) For the purposesof any PerformanceTest pursuantto this sub_article
the electricalsystemlimits to be achievedshall be asfollows:

(a) Voltage
The Unit must operatewithin the voltage levels describedin the
Functional Specificationfor the duration of the performanceTest.
If, during the PerformanceTest,voltage tesls c:rnnotbe performed
due to Grid System,data suppliedfrom testsof the geneiatorstep_
up toansformersandgeneratorssuppliedby the manufacturersshall
be used to establishthe ability of the Unit to operatewithin the
specified voltagelimits.

(b) Grid SystemFrequency

The operatewithin Grid System

ystem frequency levels
describedin the Functional Specification for the duration of the
PerformanceTest.

(c) PowerFactor
The Unit shall operatewithin the powerfactorrangedescribedin
the Functional Specification for the duration of the performance
Test. If during the PerformanceTest,power factor testscarurotbe
performeddue {o the Grid data suppliedfrom testsof the
{iual".""'.
ri)
a1 Ulti.
Bajaj(2 Xa5 MW) KundarkhiSbai.ti i].r::...r:rn r'l
E.(t{ Page98 of
I- uci(sor'.
 generatorcand the generatorstep-uptransformerssuppliedby the
manufacturersshall be usedto establishthe ability #the Unit to
operatewithin the specifiedpower factot range.
(d) Fuel quality and cooling water temperature
The Unit must operateto its Installed Capacity with Fuel quality
and-water temperatue available at the time of Testing and no
adjustmentshall be allowedfor any variation in theseparamet€rs.

As a part of the PerformanceTest, the Seller shall demonstratethat the

unit meetsthe FunctionalSpecifrcationsfor Rampingrate asmentionedin
Schedule4. For this purpose,representativesamplesof ramp ratesshall be
takeq by rampingup or down the grossturbine load while maintainingthe
required temperaturesand temperaturedifferencesassociatedwith each
ramp rate within the turbine while maintaining all other operational
parameterswithin equipmentlimits.

Further, as a part of the PerformanceTest, the Unit shall be tested for

compliancewith parametersof SupercriticalTechnology

1 . 2 lesli1SanaMeasurement procedures appliedduringperformanceTest

shallbein accordance
with codes,practicesor prociduresasgenerally/
normally appliedfor the PerformanceTests.

1 . 3 The Seller shall comply with the prevalentLaws, rules andregulationsas

E9.TE,E4
u . P - 9 .r ) l L ;
Sbakti B;rarvanE*tB
Luchnos.

Bajaj (2 X 45 MW) Kundarkhi Page99 of 128

 SCHEDULE6 : AVAILABILITY X,ACTORS

The following mattersshall be determinedasper the provisionsof the Gtid

code
andABT:

a. Availability declaration and calculation of Availability or Availability

Factor;

b. Not used;

c. Procedurefor revision of Av ailability;

d. Consequencesof failure to demonstratecapacity or misdeclarationsof

capacity;and

other matterswhich may be reratedto Availability or Availability Factor.

SbaktiiJtia,vauBnta.
Luo&!oI|.

Bajaj(2 X 45 MW) Kundarkhi Page100of 128

 SCHEDULE 7: TARIF,F

General

7,1.L Procurersshall pay to the Sellerthe Tariff and IncentiveCharge

for eachTariff period as setout in this Agreement.Tariff will ie
determined on a two-part basis comprising Fixed Charge
(Capacity Charge) and Variable Charges(Energy Charges)and
shall be computed for each Tariff period. The Tariff (Fixed
Charge,Variable Charges)and Incentive shall be determinedby
AppropriateCommission.

7.1,2 The Seller shall make an appropriatreapplication to Appropriate

Commission for determination of provisional tariff and/or final
tariff or revision.thereoffrom time to time, in accordancewith the
UPERCRegulations.

7.2 Not used

7.3 Capacity ChargePayment

7.3.1 The Fixed Chargeor CapacityChargeshall meanwith respectto

any Tariff Periodduring the Term of this Agreementthe ag$egate
ofthe following for suchTariffperiod :

Intereston loancapital;

Depreciatiorl including AdvanceAgainstDepreciation;

Rerurnon Equity;

OperationandMaintenanceexpensesincluding insurance;

Intereston workingcapital;and

Contribution towards R&M or any compensation allowance,

whicheverpermitted.

Bajaj(2 X 4s MW)

It -T: :r. {. L.
Shaiiii .l r 1 .rl |1 gxt0,
I ua I l-iow.
 For determinationof Tariff, the debt-equity ratio as on the dateof
COD shall be 70:30.In caseequity employedis more than 30%,
the amountof equity for determinationof Tarif,f shall be limited to
30% andthe balanceamountshall be consideredas the normative
loan. Hoqever, where actualequity employedis lessthan 30oi, the
actual debt and equity shall be consideredfor determinationof
tariff. The debt and equity amountso arrived at shall be usedfor
calculating interest on loaq return on equity, Advance Against
Depreciationand ForeignExchangeRateVariation.

7.3.3 Intereston DebVloanCaoital

Interest on Debt/loancapital shall be computedon all outstanding

loansin accordancewith UPERCRegulations.

7.3.4 Depreciation

7,3.4.1For thepurposeof tariff, Depreciationshallbe computedin

the following manner,namely;

The value basefor the purposeof depreciationshall

bethe historicalcostofthe asset.

ii) Depreciationshall be calculatedannually,basedon

straightline methodover the useflil life of the asset
andat the ratesprescribedin UPERCRegulations.

The residual life of the assetshall be consideredas

10Vo and depreciationshall be allowed the upto
maximum of 90% of the historical capital cost of
the asset.Land is not a depreciableasset(except
leaseholdland if any) and its cost shall be excluded
from the capital cost while computing 90% of the
historical costof the asset.

Bajaj(2 X 45Mw) Page102of 128

Luc krtos '
 iii) On repayment of entire loan, the remaining
depreciablevalue shall be spreadover the balance
usefullife of theasset.

iv) Depreciationshall be chargeablefrom the first Year

of operation.In case of operation of the assetfor
part of the Year, depreciationshall be chargedon
pro ratabasis

7.3.5 AdvanceagainstDepreciation(AAD)

In addition to allowableDepreciation,the Seller shall be entitledto

Advance against Depreciation, computed in the manner given
hereunder:

AAD = Debt Repaymentamount subject to a ceiling of

1/1Oth
of Debt minus Depreciation.

Provided that Advance against Depreciation shall be permitted

only if the cumulative Debt Repay,rnentupto a particular Yeat
exceedsthe cumulativeDepreciationupto that Year;

Providedfrrther that AdvanceagainstDepreciationin a Year shall

be restrictedto the extent of difference betweencumulative Debt
Repaymentand cumulativeDepreciationupto that Year.

7.3.6 Returnon Equrty

. Retum on equity shall be computedon the equity basedetermined

in accordancewith UPERC Regulations@ 15.50% per annum,
Provided that in casethe Unit(s) of the Seller is Commissioned
within the timelines as specifiedin UPERC Regulations,the Seller
shallalsobe entitledto anaddifionalreturnof 0.5%.

Providedthat equity investedin foreign crrrency shall be allowed

ri. fr P. ,-1.Lr
Shaiiii iti:.wai ilxtd

Kundarkhi Page103of 128

 paymenton this accountshall be made in Indiaa Rupeesbasedon
the exchangerateprevailing on the Due Date

Explanation

The premium raised by the Seller while issuing sharecapital and

investmentof intemal resourcescreatedout of free reserveofthe
Seller,if any, for the funding of the Power Station,shall alsobe
reckonedas paid up capital for the purposeof computing Return
on Equity, provided suchpremium amount and internal resources
are actually utilised for meeting the capital expenditureof the
Sellerandforms part ofthe approvedfinancial package

7.3.7 Operationand Maintenanceexpenses(O & M Expenses)

(a) O&M expensesfor eachTariff Period shall be computed
basedon the UPERCRegulationsasapplicablein the
relevantTariff Period

(b) The expenseson regulatoryfee,pa)'rnentto pollution contool

board,fringe benefittax, impact ofpay revisiorl cost of
waterandwatercessshallbepaid additi,onally at actuals.

(c) CompensationAllowance shall be paid asper provisionsof

UPERCResulations

7.3.8 WorkingCapital

?,3.8,1 WorkingCapitalshallbe the ag$egareof ihe following:

(r) Costof coal for.l% monthsfor pit-headgenerating
stationsand 2 months for non-pit-headgenerating
stations,conesponding
to theTargetAvailability;
(ii) Cost of SecondaryFuel oil for two months
conespondingto the TargetAvailability;

Operation and Maintenance expenses

Month;

1 1 .F - F , i l . L r
Shat;ti il r rwrl Ert[,

Page104of l?8
 (iv) Maintenance spares @ 20%oof Operation and
Mfitenance expenses;and
(v) Receivablesequivalentto two months or actual,
whichever is lower, comprising of Fixed Charge
and Variable Charges calculated on the Target
Availabilitv.

7,3.8.2 The rate of interest on Working Capital shall be on

normativebasisaad shallbe equalto the shortterm prime
Lending Rate of State Bank of India (notwithstandingthe
rate of interestactually paid by the Seller) as on l,t April of
the Year in which the COD of Unit is occured.Intereston
working capital shall be payable on normafive basis
notwithstanding that the Seller has not taken working
capital loan from arry outside agencyor such other iate as
may be determined/approvedby UPERC fiom time to
time.:1

7.3.9 RecoveryofFixed Charge(CapacityCharge)

(a) The recovery of full Fixed Charge(CapacityCharge)will

be allowed at Taryet Availability as per UPERC
Regulations.Recovery'of Fixbd Chargebelow the level of
TargetAvailabilityshallbeon pro ratabasis.

(b) The Fixed Chmge shall be payable every month as per

prevalentUPERCRegulations.

(c) Each Procurershall pay Fixed Chargein proportion to its

percentage
sharein InstalledCapacityof thePowerStation,

(d) While calculatingAvailability the extent of backing down

as orderedby SLDCIRLDC shatl be deemedasAvailability
achieved.

. tr i-".J. Li
Sbakti iiha'"vat E;tc,

(2 X 45 MW) Kundarkhi
 7.3.10 Taxes,duties,Ieviesandimpositionsetc.

Statutorytaxes,Ievies,duties,royalty, cessor any other kind of

imposition(s) imposedflevied/charged by the Govemment
(Central/State) and/or any other local authorities/bodies on
generation of electricity including auxiliary consumption or ay
other gpe of consumption including water, enviroffnent
protection, sale or on supply of power/electdcity and/or in respect
of any of its installationsassociatedwith the power Stationpayable
by the Seller to the authoritiesconcemedshall be govemedby the
Regulationandordersof UPERCapplicablefrom time to time.

7.3.11Tax on Income

Tax on the income streamsof the Seller from its core business
shall be computedas an expenseand shall be permittedto be
recoveredfrom Procurersin proportion to its percentagesharein
InstalledCapacityof the PowerStationin accordancewith UpERC
Regulations,

7.3.12ExtraRupeeLiability

Extra rupeeliability towards interestpa),mentand loan repayment

correspondingto normative foreign debt or actual foreign debt, as
the casemay be in the relevantYear shall be permissibleprovided
it directly arisesout of ForeignExchangerate variation and is not
attributableto the Selleror its suppliersor contmctors.The Seller
shall be entitledto recoverForeignExchangeRate Variationori
Year to Yrar basis as income or expensein accordancewith
UPERCRegulations.

7.4 Energy Charges

7.4.1 Energy Charges(Variable Charges)of Tariff shall cover the fuel

cost;boththe costof PrimaryFuel (i.e. landedcostofcoal) andthe
of SecondaryFuel(landedcostof fuel oil etc.).

i';'*H
Sha,ii; riiratr ExtA"
Lucknory.

Bajaj(2 X 45 MW) Kundarkhi Page106of

 7.4.2 Compiation of Variable/Energy Charges

Energy Charges(Variable Charges)shall cover fuel costs and

shall be worked out on the basisof ex-busenergy scheduledto be
sent out from the Units correspondingto ScheduledGenerationas
per the following formula:

Energy Charges(RO : Rate of Energy Chargesin Rs/kWh

X Scheduled Energy (ex-bus) for the Month in kWh
correspondingto ScheduledGeneration,

Where,

Rate of Energy Charges(REC) shall be the sum of the cost of

normative quantitiesof primary and secondaryfuel for delivering
ex-busonekWh of electricity in Rs&Wh and shall be computedas
under:

x (Qn)"+ P.x (Q,)n}

100{Po
REC = (Rs/kwh)

(1OO-(AUXn)
)

Where,

Pp Price of primary fuel namelycoal in Rs/Kg.

(QJ"= Quantity of primary fuel required for

generation of one kWh of electricity at
generator terminals in Kg, and shall be
computedon the basis of normative Gross
Station Heat Rate (less heat contributedby
secondaryfuel oil) and gross calorific value
ofcoal asfired.

Priceof Secondary
Fueloil in Rs./ml,

c R:(P
1.1* :t.
Sba:(ii ;-rrtr.r
.-i:t:l

Bajaj (2 X 45 MW) Kundarkhi Page107

 (QJ"= Normative Quantity of SecondaryFuel oil in
ml/kWh,and

AU&,= Normative Auxilimy Consurnptionas o/0of

grossgeneration.

7.4.3 Adjustrnentof Rate of Energy Charges(REC) on accountof

variation in price or heatvalue of fuels

Initially, GrossCalorific Value,of coal shall be taken as per actual

of the precedingthree months.Any variation shall be adjustedon
month to month basison the basisof GrossCalorific Value of coal
receivedand bumt and landedcost incuned by the Seller for
procrrement of coal. No separatepelition needto be filed with the
Appropriate Commissionfor Fuel price adjustment.In caseof any
dispute, an appropriate application in accordance with Up
Electricity Regulatory Commission (Conduct of Business
Regulations),1999,as amendedfrom time to time or any statutory
re-enactmentthereof,shall be madebeforeUPERC.

7.4.4 Land,ed,
Costof Coal

The landedcost of coal shall inOludeprice ofcoal correspondingto

the gradelqualityofcoal inclusiveofroyalty, taxes,cessandduties
as applicable, processing,handling and transportation cost by
raiVroador any other meaJrs,and, for the purposeof computation
of energy charges,shall be arrived at after consideringnormative
transit and handling lossesas perrentageof the quantity of coal
dispatchedby the Fuel Supplierduringthe month as per UPERC
Regulations. .
7.5 IncentiveCharge

7.5.1 Incentive shall be payableat a flat late of 25 paise per KWH for
ex-bus ScheduledEnergy correspondingto ScheduledGeneration
in excessof ex-bus energy cplresponding to Target PLF. This
shall be paid on arrrual basis and shall be paid in the

cE. ir'.
$hakti.^ :,r+r Eitu.

Bajaj(2 X a5MW) Kundarkhi Page108of 12Q

I
1
 Monthly Tariff Paymentfor the first month of the next Contract
Year

7.5.2 ln caseof commissioning of PowerStationaheadof schedule,as

setoutin the approvalof Appropriate Commission,the Seller shall
be eligible for incentive of an amount equivalent to reduction of
interest dwing construction. However actual interest during
construction shall be considered for calculation of final and
completedproject cost for tariff determination.The incentiveshall
be recoveredthrough tariff in twelve equal monthly installments
during first year of operation of the Unit. [n case of delay in
commissioning,as setoutby the Appropriate Commission,interest
during constructionfor the period of delay shall not be allowedto
be capitalizedfor determinationof tarifi unlessit is shownthat the
delay is on accountof forcemeajureconditions

7.5.3 The obligation to pay incentiveChargewill be supportedby Letter

of Credit.

7.6 (UI) Charges

Interchange
Unscheduled

Variation betweenScheduledEnergyand actual energyat the Delivery

Point shall be accounted for tluough Unscheduled Interchange (UI)
Chargesas detailedin the Grid CodeandABT.

7.7 TransmissionnvheelingChargesand SchedulingCharges

The payment of transmission/wheelingchargesshall be settled between

the CTU/STU and the respectiveProcurer. The paynnentof scheduling
chargesto the respectivenodal agency (RLDC or SLDC) shall be the
responsibilityof Procurers,
7.8 Penaltyandrights relating to Minimum GuaranteedQuantity of Fuel

In caseSellerhasto pay penaltyto the Fuel supplierfor not purchasingthe

minimum guannteed quanfity of Fuel mentioned in the Fuel Supply
Agreement and if during that Contract Year Availability of the
CommissionedUnit ,is greaterthan the Minimum Offtake Guaraateebut
=
,-.-.'

Bajaj(2 X 45 Mw) U Page109of s$/

Sbakiieit'a3a E)rtn.
t.
Luckoos'
 all Procurerstaken togetherhave not ScheduledEnergy conespondingto
suchMinimum Off-take Guaranteeduring that ContractYear, then Seller
will raise an invoice for the lower of the following amount,on Procrrers,
who have individually not achievedMinimum Offtake Guaranteeduring
that Conhact Year, in proportion to their difference betweenScheduled
Energy assumingofftake correspondingto Minimum Offtake Guarantee
and ScheduledEnergy(asapplicableto suchProcurer/s) for the following

(a) Penalty paid to the Fuel Supplier under the Fuel Supply
Agreements in that ContractYear,alongwith documentary
proof for paymentof suchpenalty,or

(b) An amount coresponding to twenty percent (20%o)of

cumulative Monthly CapacityChargePayment(in Rs,) for
all Procurersmadefor all the monthsin that ConhactYear
multipliedby (1- x/y) where:

Where:

X is the ScheduledEnergy during the Contract Year for all

Procurers(in kwh); and

Y is the ScheduledEnergycorrespondingto Minimum Offiake

Guaranteefor all Procurersduring the ContractYear (in kwh).
Provided,within ten (10) daysof the endof eachMonth after the COD of
the Unit, the Seller shall provide a statementto all Procurers, providing a
compaxisonof the cumulative dispatch for all previouri Months during the
ContractYear with the Minimum Offtake Guaranteeof Procurers.Further, such
statementshall also list out the deficit, if any, in the Fuel offtake under the Fuel
supply agreement,due to cumulative dispatch being less than the Minimum
OfftakeGuarantee. In caseofa Fuelofftakedeficit,within a periodof fifteen(15)
days from the date of recerpt of the above statementfrom the Seller and after
giving a prior written notice of al least seven(7) daysto the Seller and all the
other Procurers,the concemedProcurer(s)shall havethe right to avail themselves
suchdeficit at the sameprice at which suchdeficit fuel was availableto the Seller
under the Fuel supply agteementand to sell such deficit to third parties. Such
right of Procurers with regard to deficit fuel shall be in proportion to their
shortfallin MinimumOfftakeGuarante
respective ,,'/',: livlt;'
;i;:'l,:,i. ':...r
,/rn',{
'rf $N/;
(2x 4sMW) Page110of 128

c
n . P- 2 7 T L t
Shcl t"1liJ,r!v3a Ext6
I ucknOW,
 7.9 Records
For the purposesof this Agreement,the assets,liabilities, Equity, revenueand
expensesof the Seller shall be recordedand maintainedin the accountsof the
Seller in Rupees. Either Party shall have the right, upon reasonableprior
written notice to the other Party,to examineand/ or make copiesof the records
anddataof the other Partyrelating to this Agreement
7.10 Norms of Operation
'
For the purposeof tariff determinatio&the Norms of Operationshallbe
decidedby UPERC separately.

$hairti 3i;i*Jan Extn

Luokrow.

Bajaj(2 X 45 Mw) Page111of

 SCHEDULE I : DETAILS OF INTERCONNECTION POINT AND
F'ACILITIES

The InterconnectionPoint or Delivery Point shall be point from wherethe

power fiom the Power StationSwitchYard Bus is being injectedinto the
Transmission Network.

The Sellershallbe requiredio providethe followingfacilitiesin thePower

StationSwitchYaxd

detailsshall be providedat a later stage

Bajaj(2 X 45MW) Kundark;hi Page112of 128

SCHEDULE 9 : DETAILS OF POWER EVACUATION
ARRANGEMENTS TO BE PROVIDED BY UPPTCL

S.NO. Particulars
1. @ the procurersfrom the 132 KV Switch
Yard of the B.E.P.L.Power GeneratingStation,Kundarkhithrough
132 KV Double Circuit TransmissionLine at 220 KV Gonda Sub
Station

?,?{1Ti.
Shakliiglrrva::Eltr
LucLloE.

Page113of 128
 SCHEDULE 10 : REPRESENTATIONAND WARRANTIES

l. Representations and Warrantiesby the procurers

EachProc'rer through uPPCL herebyrepresentsand warrantsto and agreeswith
the seller as follows and acknowledgesand confirms that the seller is relying on
suchrepresentationsand warranfiesin connectionwith the transactionsdescribed
in this Agreement:

1.1 The said Procurerhas all requisitepowersauthorisingand has been duly

authorisedto executeandconsummatethis Agreement;

1.1.a That UPPCLhasbeenduly authorizedon behalfof all the procurersto

act astheir co-ordinatingagencyand rcpresent,sign and executethis Agreement
on their behalf and to do all other relavantthings asmay be requir'ed;

againstthe said procurerin accordance

1.2 This Agreementis enforceable with
its terms;

1.3 The consummationof the transactionscontemplatedby this Agreementon

the part of the said Procurerwill not violate any provision of norlonstitute a
default under, nor give rise to a power to .cancelany charter,mortgage,deedof
trust or lien, lease, agreement, license, permit, evidence of indebtedness,
iestriction, or other contractto which the saidProcureris a party or to which said
Procureris bound,which violation, defaultor power hasnot beenwaived;

1.4Thesaid Procureris not insolventand no insolvencyproceedingshavebeen

instituted,nor tfueatenedor pendingby or againstthe saidprocurer;

1.5Thereareno actions,suits,claims,proceedings or investigations pendingor, to

the best of the said Procurer'sknowledge,threatenedin writing againsttie saia
Procurerat law, in equity, or otherwise,and whether civil or criminal ln nature.
before or by, any court, commission, arbitrator or govemmental agency or
authority, and there are no outstandingjudgements,decreesor ordersof any such
courts, commissior5 arbitrator or govemmentalagenciesor authorities, which
materially adversely affect its ability to comply with its obligations under this
Agreement.

l.6The quantum of Allocated ContractedC,apacityof said procurer does not

exceedthe projectedadditionaldemandforecastfor the nexi three(3) years.

Each of the Procurersmakesall the representationsand warrantiesaboveto be

on lhe @te 0f this Agreement.
';('.+
E:rto'
,, $*fli
Sbai,iti tlll?ril
,'i'',-i;"##
Bajaj(2 X 45 MW) Kundarkhi Page114of 128
 2. Representationand Warrantiesof the Seller
The Seller hereby representsand warrants to and agreeswith the procurcrs as
follows and acknowledgesand confirms that the procurers are relying on such
representationsand warrantiesin connectionwith the transactionsdescribedin
thisAgreement:

2.lrhe Seller has all requisitepower authorisingand has beenduly authorisedto

executeand consurnmatethis Agreement;

2.2ThisAgreementis enforceableagainstthe Sellerin accordancewith its terms;

2.3Theconsummation of the transactionscontemplated by this Agreementon lhe

part of the Seller will not violate any provision ofnor constitutea default under,
iror give rise to a power to cancel any charter,mortgage,deed of trust or lien,
lease,agreement,license, permit, evidenceof indebtedness,restrictioq or other
contract to which the Seller is a party or to which the Seller is bound which
violation, default or power hasnot beenwaived;

2.4TheSelleris not insolventandno insolvencyproceedings

havebeeninstituted,
or not threatenedor pendingby or againstthe Seller;

2.5Thereareno actions,suits,claims,proceedings or investigationspendingor, to

the bestof Seller'sknowledge,threatened in writing againstthe Sellerat law, in
equity, or otherwise, and whether civil or criminal in nature, before or by, any
court commission,arbitrator or governmentalagencyor authority, and there are
no outstandingjudgements,decreesor orders of any such courts, commission,
arbitrator or governmentalagenciesor authorities, which materially adversely
affect its ability to executethe Projector to comply with its obligationsunderthis
Agreement.
Thb Sellermakesall the representations and wanantiesaboveto be valid as on the
dateofthis Agreement,exceptasstatedin sub-article 2.6 above.
The Sellermakesall the representations andwarrantiesaboveto be valid as on the
datelofthis Agreement.
\(\
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-llrrwrnExtn.
ShaLiti
Luo&!ow"

Bajaj(2 X 45 MW) Kundarkhi Page115of 128

 SCHEDULE11: NOT USED

c E. (P g:\4;
u.Yi-.a\t,.
ShaktiJ;rr,,'..t J.rtn,

Bajaj(2 X a5 MW) Kundarkhi Page116of 128

 SCHEDULE 12 : I,IST OF ARTICLES
[applicablein caseofprocurementby more than one procurers]

List of Articlesunderwhich rightsandobligationsofthe Procurers(includingall

mattersincidentaltheretoandrelatedfollow-up), which arerequiredto be
undertakenby the Procurersjointly, will be performedby Lead procurerfor and
on behalfof all the Procurers

Article1.1
Article2.2
Article3.1.2
Article4.3.2
Atttcle4.7.2
Article5.3
Article5.5
Article6.2.3
Artisle8.1.1
Article8.1.2
Article8.1.3
Article8.1.4
Article8.1.5
Article8.1.6
Article8.2.2(c)
Article13.3.2
Article14.1(ii)
Article14.1(ix)
Article14.1(x)
Article14.1(xi)
Article14.3.1

andany other Art'cles of this Agreementnot specificallymentionedherein,which

proyide for ajoint action by all the Procurers.

Sha:rri iii:;,:,'i:.i E.rttl.

Lueliu0n"

Bajaj(2 X 45 MW) Kundarkhi Page117of 128

 Name of the Procurer Allocated
Contracted
CapaciV(%)
PaschimanchalVidf'ut Vitran Nigam Ltd (Procurer1) 30%
Vidyut Vihan NieamLtd. (Procurer2)
Poorvanchal 30%
MadhyanchalVidyut Vitran Nigam Ltd (Procurer3) 20%
DakshinanchalVidyut Vitran Nisam Ltd (Procurer4) 20%

$ iriri'Li |i. i:r:t i ii Ai(ttr,

Luc.E40B,

Bajaj (2 X 45 MW) Kundarkhi PageI 18of 128

 SCHEDULE14: CAPITAL STRUCTURESCHEDULE

(Shall be providedby the sellerat a later stage)

'.\-2-4, l"
Sharr:.i9 :i',,vri: Eltn

Bajaj(2 X a5MW) Kundarkhi PageI 19of 128

 SCHEDULE 15 : FORMAT OF PERX'ORMANCE GUARANTEE
(Shall be providedby UPPCL at a latei stage)

ShaLriSrrt.i:rErt[.
Luci(Eoa'

Bajaj (2 X 45 MW) Kundarkhi Page120of 128

 SCHEDULE16:NOTUSED

Siiakri3.;.r*;:-:.Extn"
LucLi]os.

Pagel2l of 128
nai4 1ZX +SUW1Kundarkhi
 SCHEDULE 17 : SUBSTITUTTONRIGHTS OF THE LENDERS

1. Substitutionof the Seller

4 Subjectto the terms of the PPA, upon occurrenceof a Seller Eventof Default
underthe PPA, the Lendersshall, have the right to seek substitutionof the Seller by a
Selecteefor the residualperiod of the PPA, for the pulposesof securingthe paymentsof
the Total Debt Amount fiom the Seller and performing the obligations of the Seller, in
accordancewith the provisionsofthis Schedule.
b) The Lendersmay seek to exerciseright of substitutionby an amendmentor
novation of the PPA and other Project DocumentsexecutedbetweenProcwers and the
seller in favour of the selectee,the Procurersand the seller shall cooperatewith the
Lendersto carryout suchsubstitution.
2. ProcurersNotice of Default
TherelevantProcurer(i.e. the Procurer. who servesthe PreliminaryDefaultNoticeon the
Selleras per this Agreement)shall, simultaneouslyalso issue a copy of the sameto the
Lenders.
3. SubstitutionNotice
In the event of failure of the Seller to recti$ the Event Of Default giving rise to
Preliminary.Default Notice, the lenders, upon receipt of a written advice from the
procrrersconfirming suchfailure, , either on their own or throughits representative("the
Lenders,Representative,)shall be entitled to notis the Procurersand the seller of the
intention rif the Lendersto substitutethe Sellerby the Selecteefor the residualperiod of
the PPA (the "substitution Notice")'
4.- Omitted
5. Interim operationofProject
a) On receipt ofa SubstitutionNotice, no further action shall be taken by any Party
to terminatethe PPA, exceptunder and in accordancewith the termsof this schedule17
of this Agreement.
b) On issueofa SubstitutionNotibe,the Lendersshall havethe right to requestthe
Procurers to enteruponandtakeoverthe Projectfor theinterimandtill the substitutionof
tfte Selecteeis. complete and to otherwise take all such steps as are necessaryfor the
continued operation and maintenanceof the Projecl including levy, collection and
appropriationof paymentsthereunder,subjectto, the servicingof moniesowed in respect
of the Totai Debt Amount as per the Financing Agreements and the seller shall
completely cooperate in any such takeover of the Project by the Procurers. If the
Procurers,at their sole and exclusive discretion agreeto enter upon and takeover the
Project,.till substitution of the Selectee in accordaacewith this Agreement, such
Procurersshall be compensatedfor rendering such servicesin accordancewith clause
I l.l .3 herein.
c) If the Procurersrefuse to takeoverthe Project on requestby the Lendersin
accordancewith clause 5(b) above, the seller shall have the duty and obligation to

Bajaj 45 MW) Page122of 128

eF.-
ghakti ;:l
, ,,.
continueto opefatethe Project in accordancewith the PPA till suchtime as the selectee
underclause8.8hereof.
is finally substituted
d) The Lendersand the Procurersshall, simultaneouslyhave the right to commence
the processof substitutionof the Seller by the Selecteein accordancewith theseterms
andthe Sellerherebyirrevocablyconsentsto the same.
6. Processof Substitutionof Seller
The Lenders' Representativemayr on delivery of a Substitution Notice notify the
Procurersand the Seller on behalf of all the Lendersaboutthe Lenders' decisionto invite
andnegotiate,at the cost of the Lenders,offers from third partiesto ac1as selectee,either
throughprivate negotiationsor public auctionand / or a tenderprocess,for the residual
period of the PPA. subject to and upon approval of the Lead Procurer referred to in
clause8.5, such Selecteeshall be entitled to receiveall the rights of the Seller and shall
undertakeall the obligations of the Seller under the PPA and other Project Documents
executedbetween the Seller and the Procutets, in accordance.with these temts of
substitution.
The Lenders and the seller shall ensurethat, upon the Lead Prgcurer approving the
Selectee,the Seller shall transferabsolutelyand irrevocably,the ownershipof the Project
to such Selecteesimultaneouslywith the amendm€ntor novation of the PPA and other
Project Documents executedbetween the Sellel arid the Procurersin favour of the
Selecteeasmentionedin clause1 (b).

7. Modalityfor Substitution
7.1 Criteriafor selectionof the Selectee.
The Lendersand / or the Lenders' Representativesha1lin addition to any other
criteria that they may deemfit and necessary,apply the following critefia in the
selectionof the Selectee:

(a) If the Seller is proposedto be substitutedduring the ConstructionPeriod, the

Selecteeshall possessthe technical and financial capability to perform and
dischargeall the residualduties,obligationsand liabilities of the seller undgrthe
PPA, If the Se1leris proposedto be substitutedduring the OperationPeriod,this
criteriashallnot be applicabl

(b) The Selecteeshall havethe capability and shall unconditionallyconsentto assume

the liability for the payment and dischargeof dues, if any, of the Seller to the
Procurersunder and in accordancewith the PPA and also paymentof the Total
Debt Amount to the Lendersupon terms and conditionsas agreedto betweenthe
Selectee andthe Lenders;

G) The Selecteeshall havenot beenin breachof any agreementbetweenthe Selectee

and any Bank or any Lender oi betweenthe selecteeand any of the Procurers,
involving sumsgreaterthan Rupeestwenty (20) croresat any time in the last two
(2) yearsason the dateof the substitutionofthe Seller'

Bajaj(2 X Page123of
(d) Any,other appropriate criteria, whereby continuity in the performanceof the
Sellctee's obligationsunder the PPA is maintainedand the security in favour of
the T,endersunderthe FinancingAgreementsis preserved.

Modalities

The following modalities shall be applicable to any substitution of the Seller by the
Selectee pursuantto this Agreement:

8.1 The Lenders' Representative shall on behalf of the Lenders proposeto the
.,Proposal") pursuant to sub-clause8.2 below, the name of the
Procurers(the
Selecteefor acceptance,seeking:

(a) Cnant of all the rights and obligations under the PPA and the other Project
Documentsexecutedbetweenthe Procurersand the Seller, to the Selectee(as
substitutefor the Seller);

o) Amendmentof the PPA and the other ProjectDocumentsexecutedbetweenthe

Procruers and the Seller, to the effect that the aforementionedgrani to the
Selectee,shall be suchthat the rights and obligationsassumedby the Selecteeare
on the sameterms and conditionsfor the residualperiod of the PPA as existedin
respectof the seller under the original PPA and the other Project Documents
executedbetweenthe Ptocurersandthe Seller;and

(c)Theexecutionofnewagreementsasnecessary,bytheproposedSelecteeforlhe
residualperiod of the PPA on the sameterms and conditions as are included in
this Agreement.

g.2 The Proposal shall contain the particulars and information in respect of the
seleoteethe data and information as any of the Procurersmay reasonablyrequire.
The Procurersmay intimate any additionalrequirementwithin thirty (30) days of
the dateofreceipt of the Proposal.

8.3 The Proposal shall be accompaniedby an unconditional undertaking by the

Selecteethat it shall, upon approvalby the Procurersofthe Proposal:
(a) Observe,comply, perform and fulfrl the terms' conditions and covenantsof the
ppA and all ProjectDocumentsexecutedbetweenseller and the Procutersor a
new power purchaseagreementor respectiveProjectDocument(in the caseof the
noroutioothereofl, which according to the terms therein are required to be
observed,compliedwith, performedand fulfilled by the seller, as if suchselectee
wastheselleroriginallynamedunderthePPA;orthe'respectiveProject
Document;and

Pagel?4 ofl28 '

Sajaj (Z X qS N:IW)Kundarkhi

9k+-?.v:.tl
Shalrii 3la..van Extn
Ln.i know.
 then
o) Be liable for and shall assume,dischargeand pay the Total Debt Amount or
outstandingdues to the Lenddrs under and in accordancewith the Financing
Agreementsor in any other manneragreedto by the Lendersand the Procurersas
ii such Selectee was the Seller originally named under such Financing
Agreements.

8.4 At any time prior to taking a decision in respectof the Proposalreceivedrurder

clarrre8,l,tlr"Pro"*"ttmayrequiretheLender/Lenders'Representativeto
as to
satisfi it as to the eligibility of the selectee.The decision of the Procurers
made
acceptanceor rejection of the Selectee,shall be madereasonablyand when
shall be final, conciusiveandbinding on the Parties'

All Procurersshall conveytheir approvalor disapprovalof suchProposal'through

be
the l,ead Procwer,to the Lender/ Lender's Representative.such decisionshall
madeby the Procurersat their reasonablyexerciseddiscretionwithin twenty one
(21) daysof:

(a) Thgdateof receiptofthe Proposalby the Procurers;or

iil The date *hen the last of further and other information and clarifications
in'respect of any data, particulars or information included in the Proposal
,"qrrurt"d by any ofthe Procuretsunderclause8'2 aboveis received;
whicheveris later.

the
Notwithstanding anything to the contrary mentioned in this Agreement'
irpprovalofthe Procure(s) or LeadProcurerfor the Selecteeshall not be withheld
:
in casethe Selecteemeetsthe criteria mentionedin Clause7' 1'
Selectee
8.6 Upon approval of the Proposaland the Selecteeby the Ptocurers'the
-"ntion.d io the Proposalshall becomethe Selecteehereunder'
Lenders'
8.7 Following the rejection of a Proposal, the Lenders and/or the
proposal,proposinganother
Represeniativeshall t ave the right to submit a fresh
party
Selectee(if the rejection was on the grounds of an inappropriatethird
proposed as Selectee) within sixty (60) days of receipt of communication
of this
iegardirrg rejection of the Selecteepreviously proposed'The provisions
clauseshall apply mutatismutandisto suchftesh Proposal'
upon
8.8 The Jubstitutin of the Sellerby the Selecteeshall be deemedto be complete
the Selecteeexecuting all necessarydocumentsand writings with or in favorn of
-and
the Seller, Procurers the Lenders so as to give full effect to the terms and
by
conditionsof the substitution,subjectto which the selecteshasbeenaccepted
complete
the Lenders and the Procurersand upon transfer of ownership and
possessionoftheProjectbytheProcurersortheSeller'asthecasemaybe,tothe
^selectee.
The Procurersshall novate all the Project Documents,which they had

Page125of
Bajaj (2 X 45 MW) Kundarkhi

SbafttiIkaw:rnBxtl.
&uokoow.
$
 enteredin to with the Seller in order to makethe substitutiQnof the Sellerby the
selectee effective, The quantum ard manner of payment of the consideration
payable by the selectee to the Seller towards purchase of the Project and
ussumptionof all the rights and obligationsof the Seller under the PPA and the
Project Documentsas mentionedin this Agreementshall be entirely betweenthe
Selier, Selecteeand the Lendersand the Procurersshall in no way be responsible
to beartle same.
8.9 Upon the substitutionbecomingeffectivepursuant_tosub-clause8.8 above,all the
rights ofthe Sellerunderthe PPA shall ceaseto exist:
Providedthril, nothing containedin this sub-clalse shall prejudiceany pending /
subsistingclaims of the Seller againsta Plocufer or any claim of the Procurers
againstthe erstv!+rileSelleror the Selectee.

8.10 The Selecteeshall,subjectto the termsandconditionsof the substitution,havea

period of ninety (90) iays to rectiff any breach and / or default of the Seller
subsistingon the date of substitutionand requiredto be reotified and shall ilcur
the liability ol consequenceol1accountof any prwious breachand / or default of
the Seller.
g,l l Thedecisionofthe Lendersandthe Procurersin tle selectionofthe Selecteeshall
be final andbinding on the Sellerand shall be deemedto havebeenmadewith the
concurrence of the seller. The seller expresslywaivesall rights to .objector to
challenge such selection and appointment of the Selectee on any ground
whatsoever.
g.12 The Lendersshallbe solelyandexclusivelyresponsible for obtairringany_and
fl
consents/approvals or cooperation,which may be requiredto be obtainedfrom the
Sellerunderthis Agreementandthe Procurersshall not be liable for the same.
8.13 All actions of the Lenders' Representativehereundershall be deemedto be on
behalfoftheLendersantlshallbebindinguponthem.TheLenders'
Representativeshallbeauthorisedtoreceivepaymentofcompensationandany
otherpayments,includingtheconsiderationfortransfer,ifany,inaccordance
give valid
*ith the Proposaland the FinancingAgteementsand shall be bound to
dischargeon behalf of all the Lenders'

9. Seller'sWaiver

law
9.1 The seller irrevocably agreesand consents(to the extent to which applicable
may require such consent) to any actions of the Lenders' the Lender's
RepresentativeandtheProcurersorexergiseoftheirrightsunderandin
accordanceradththeseterms.
g.2Thesellerirrevocablyagreesandconsents(totheextenttowhichapplicablelaw
cease
may requiresuchconsents)that ftom tfe d31especifiedin clause8'9' it shall
tohaveanyrightsunderthePPAortheFinancingAgreementsotherthanthose
expresslystatedtherein.

Page126of
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9.3 The Seller wafrants and covenantsthat any agreemententeredinto by the Seller,
in relation to the Project, shall include a legally enforceableclauseproviding for
automaticnovation of such agreementin favour of the Selectee'at the option of
the Lpndersor the Procurers'The Seller further warrants and covenantsthat, in
respectof any agreementswhich have alreadybeen executedin relation to the
Project and which lack a legally enforceableclause providing for automatic
novation of such agteenent, the Seller shall procure an amendmentin the
concludedagreementto incorporatesuchclause.

10. Interim ProtectionOf ServiceAnd PreservationOf Security

10.1 Appointrnentofa Receiver

10.1.1In every caseof the Lendersissuing a substitutionNotice and the Procurers

refusingto takeoverthe Project and the Sellerfailing to operarcthe Project in accordance
wittr Clause5(c)aboveandthe Procurersnot electingto act asReceiverasper sub-clause
10.1.1Ahereof,the Lendersmay instituteprotectivelegalproceedings for appointmentof
a receivef (the "Receiver") to maintain,preserveandprotectthe assetsheld as securityby
the Lendersifsuch right is grantedunderthe terms of the FinancingAgreemcnts.

10.1.I A Providedthat in eventof the Procurersrefusingto takeover the Projectand the

$eller failing to operatethe Project in accordancewith Clause5 (c) above,and if
the assetsof the Project are, in the opinion of the Procurers,necessaryand
required for the operationand maintenanceofthe Project, the Procurersshall be
entitled to elect to act as the Receiver for the purposesof this Clause and be
entitled to mainlain, pleserve and protect the said assets by engaging an
operator/serviceprovider to act on their behalf and the Lendersand Seller hereby
consentand agreeto the same. Upon the Procuretsso intimating the Seller and
the Lender's representativetheir desire to act as Receiver, the se11erand the
Lender's representativeshall co-operatewith the Procurersto facilitate the same.

10.1.2 Upon appointrnentof the Court appointedReceiver or the Procurels acting as

Receiver,all the Receivablesreceivedby suchReceivershall be depositedby the
Receiverin the bank accountjointly designatedby the Procurersand the Lenders.
The Receiver shall be responsiblefor protecting the assetsin receivershipand
shdll render a true and proper account of the receivership to the lenders in
irccordancewith the termsof its appointment,

10.1.3when actingas a Receiveror operatorin accordance with this clauseI I or clause

5(b), Procurersshal1be entitled to be remuneratedfor such seryicesas may be
determinedby central Electoicity Regulatory commission. Furthermore,when
acting as a Receiver,the Procurersshall not be liable to the Lenders,the Lenders'
Representative,seller or any third party for any defaultunderthe PPA, damageor

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 loss to the Power Station or for any other reasonwhatsoever,except for wilful
defaultof the Procurers.

11. SubstitutionConsideration

11.1 The Lendersand Procurersshall be entitled to appropriateany consideration

received for the substitution of the seller as hereinaboveprovided, from the
Selecteetowards the paymentof Lenders' lrnd the Procurer's respectivedues,to
the exclusionofthe Seller.

ll.2 The Seller shall be deemed to have nominated, constitutes and appoints the
Lenders' Representativeas its constitutedattorney for doing all acts, deedsand
things as may be required to be done for the substitution of the seller by the
Selecteepursuantto theseterms.

12. Changein the Procurersor Lenders

The Parties hereto acknowledgethat during the subsistenceof the PPA" it is

possiblethat any Procurer(s)may ceaseto be a party to this Agreementby reason
of termination of PPA vis-d-vis such Procurer and any Lender may ceaseto
remain as a Lender by reasonof repaymentof the debt or otfierwise. Further it
may possiblethat any Lendermay be substitutedol a new Lender may be added'
In the event of any Procurer ceasingto be a party to the PPA or Financing
Agreementrespectively,the term and conditions as prescribedin this schedule
,liull to automaticallyapply to suchProcureror Lender as the casemay be.
".ur.
Further,upon any entity being addedas a Lender and in the event such entity is
given the right to substitute.the seller under the Financin$ Agreementand then
ihe contentsof this Scheduleshall be applicableto the exerciseof such right by
the sgidnew entity.

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