Committed Value Addition Sample Clauses

Committed Value Addition. If the Beneficiary Firm fails to achieve the Committed Value Addition as specified in Schedule - M, the Damages shall be estimated by determining the deficit in the Committed Value Addition and the actual Value Addition achieved. This deficit shall be deducted from the Subsidy for the quarter where any such shortfall has been determined. If the deficit is not fulfilled within the immediately subsequent quarter, such Damages may be carried forward to subsequent quarters, until the deficit is adjusted. By way of illustration and for the avoidance of doubt, the deduction in the Subsidy shall be computed as follows: If the Beneficiary Firm commits 80% (eighty per cent) Value Addition in its Bid but only meets 70% (seventy per cent) at the end of the quarter, then there will be a retrenchment in the Subsidy paid by the Government. The retrenchment amount shall be Subsidy of 80% (eighty per cent) Value Addition (i.e., the Committed Value Addition) subtracted from Subsidy of 70% (seventy per cent) Value Addition (i.e., the actual Value Addition met by the Beneficiary Firm). This amount will be deducted from the Subsidy to be disbursed in the same quarter as way of Damages.
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Related to Committed Value Addition

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