Common use of Penalty for Delay in Commissioning Clause in Contracts

Penalty for Delay in Commissioning. The Project shall be commissioned by the Scheduled Commercial Operation Date, failing which the Power Producer shall be liable to penalty as stipulated herein. The maximum deadline allowed for commissioning of the full Project Capacity with applicable penalty / liquidated damages, shall be limited to the date as on 180 days from the SCOD or the extended SCOD (if applicable). In case of failure to achieve this milestone, GUVNL shall encash the Performance Bank Guarantee (PBG) on per day basis and proportionate to the balance Capacity not commissioned. In case, the Commissioning of the Project is delayed beyond this period, the Power Producer’s Event of Default as per Article 10.2.1 of the PPA shall be considered to have occurred and the PPA capacity shall stand reduced / amended to the Capacity Commissioned till such period as mentioned above (i.e. SCOD + 180 days) and the PPA for the balance Capacity will stand terminated and shall be reduced from the Contracted Capacity. The Power Producer acknowledges that the amount towards penalty for delay in commissioning (Liquidated Damages as mentioned at Article 3.3) is a genuine and reasonable pre-estimate of the damages that may be suffered by XXXXX as specified under this Agreement

Penalty for Delay in Commissioning. The Project shall be commissioned by the Scheduled Commercial Operation Commencement-of-Supply Date, failing which the Power Producer shall be liable to penalty as stipulated herein. The maximum deadline allowed for commissioning of the full Project Capacity with applicable penalty / liquidated damages, shall be limited to the date as on 180 days from the SCOD SCSD or the extended SCOD SCSD (if applicable). In case of failure to achieve this milestone, GUVNL shall encash the Performance Bank Guarantee (PBG) on per day basis and proportionate to the balance Capacity not commissioned. In case, the Commissioning of the Project is delayed beyond this period, the Power Producer’s Event of Default as per Article 10.2.1 of the PPA shall be considered to have occurred and the PPA capacity shall stand reduced / amended to the Capacity Commissioned till such period as mentioned above (i.e. SCOD SCSD + 180 days) and the PPA for the balance Capacity will stand terminated and shall be reduced from the Contracted Capacity. The Power Producer acknowledges that generator shall be debarred from participating in the amount towards penalty bids by any procurer or any intermidiary procurer for delay in commissioning (Liquidated Damages as mentioned at Article 3.3) is a genuine and reasonable pre-estimate of the damages that may be suffered by XXXXX as specified under this Agreementfollowing period: