Common use of Penalties in case of Delayed Commissioning Clause in Contracts

Penalties in case of Delayed Commissioning. 10.4.1 Under normal circumstances the Project has to be commissioned within 180 days from the date of signing of this Agreement. In case of failing to achieve this milestone, Solar Power Procurer shall encash the Performance Bank Guarantee which was submitted by Solar Developer to the Solar Power Procurer at time of entering the PPA, in the following manner: i. Delay up to one (1) month – Solar Power Procurer will encash 20% of Performance Bank Guarantee (INR 6 lakh) on per day basis proportionate to the capacity not commissioned. ii. Delay of more than one (1) month and up to three months – Solar Power Procurer will encash 80% of the Performance Bank Guarantee (INR 24 lakh) on per day basis proportionate to the capacity not commissioned. iii. In case the commissioning of Power Project is delayed beyond three (03) months from the Scheduled Commercial Operation Date, the SPD shall pay to Solar Power Procurer, the Liquidated Damages at rate of INR 60,000 per day of delay for the delay in commissioning. The amount of liquidated damages would be recovered from the SPD from the payments due on account of sale of solar power to Solar Power Procurer. iv. The maximum time period allowed for commissioning of the full Project Capacity with encashment of Performance Bank Guarantee and payment of Liquidated Damages shall be limited to four (4) months from the Scheduled COD as per this Agreement. In case, the commissioning of the Power Project is delayed beyond four (4) months from Scheduled COD of this Agreement, it shall be considered as an Solar Power Developer Event of Default and provisions of Article 10 shall apply. v. For all other cases of Solar Power Developer Event of Default, procedure as provided in Clause 10.1 shall be applicable. vi. The Offtaker reserves the right to waive off the penalties in case the delay in commissioning is due to delay in approvals from DISCOM or any other statutory authority which is beyond the control of the developer.

Penalties in case of Delayed Commissioning. 10.4.1 Under normal circumstances the Project has to be commissioned within 180 days 12 months/15 months from the date of signing of this Agreement. In case of failing to achieve this milestone, Solar Power Procurer the DISCOM shall encash the Performance Bank Guarantee which was submitted by the Solar Developer to the Solar Power Procurer DISCOM at time of entering the PPAthis Agreement, in the following manner: Contracted Capacity commissioned but with delay: i. (a) Delay up to one (1) month – Solar Power Procurer will DISCOM shall encash 20% of Performance Bank Guarantee (INR 6 lakh) 3 Lakhs per MW on per day basis proportionate to the capacity Capacity not commissioned. ii. (b) Delay of more than one (1) month and up to three months – Solar Power Procurer will DISCOM shall encash 80% of the Performance Bank Guarantee (INR 24 lakh) 7 Lakhs per MW on per day basis proportionate to the capacity Capacity not commissioned, in addition to the amount stated in clause 10.5 (a). iii. (c) Delay of more than three (3) months and up to five (5) months - DISCOM shall encash INR 10 Lakhs per MW on per day basis proportionate to the Capacity not commissioned, in addition to the amount stated in clauses 10.5(a) and 10.5(b). (d) In case the commissioning of Power Project is delayed beyond three five (035) months from the Scheduled Commercial Operation Commissioning Date, the SPD shall pay to Solar Power ProcurerDISCOM, the Liquidated Damages at the rate of INR 60,000 Rs.1,00,000/- per MW per day of delay for the delay in commissioningsuch remaining Capacity which is not commissioned. The amount of liquidated damages would shall be recovered from the SPD from the payments due on account of sale of solar power to Solar Power Procurerthe DISCOM. iv. (e) The maximum time period allowed for commissioning of the full Project Capacity with encashment of Performance Bank Guarantee and payment of Liquidated Damages shall be limited to four eighteen (418) months from the Scheduled COD as per this Agreement. In case, the commissioning of the Power Project is delayed beyond four (4) months from Scheduled COD of this Agreement, it shall be considered as an Solar Power Developer Event of Default and provisions of Article 10 shall apply. v. For all other cases of Solar Power Developer Event of Default, procedure as provided in Clause 10.1 shall be applicable. vi. The Offtaker reserves the right to waive off the penalties in case the delay in commissioning is due to delay in approvals from DISCOM or any other statutory authority which is beyond the control of the developer.months/ twenty one