Common use of Performance Bank Guarantee/ Payment on Order Clause in Contracts

Performance Bank Guarantee/ Payment on Order. Instrument 3.2.1 The Performance Bank Guarantee (PBG) / Payment on Order Instrument (POI) having validity from the date of submission of PBG/POI until (insert validity period as per RfS conditions), submitted for a value of Rs. (in words) under this Agreement, shall be for guaranteeing the commencement of the supply of power up to the Contracted Capacity within the time specified in this Agreement as per format provided in Schedule 1/2. Since the PBG is linked to the Installed Capacity of the Project, and the same is allowed to be modified subsequent to issuance of LoA, in case of revision in the Installed Capacity until the date as per Article 3.1 of this Agreement, for which modified connectivity is applied by RPD for the Project, the RPD will be required to submit the revised PBG corresponding to the revised Installed Capacity prior to issuance of SECI’s consent for this revision. 3.2.2 The failure on the part of the RPD to furnish and maintain the Performance Bank Guarantee / Payment on Order Instrument shall be a material breach of the term of this Agreement on the part of the RPD. 3.2.3 If the RPD fails to commence supply of power from the SCSD specified in this Agreement or any further extension thereof duly granted by SECI, subject to conditions mentioned in Article 4.5, SECI shall encash the Performance Bank Guarantee / Payment on Order Instrument equivalent to the amount calculated as per liquidated damages applicable under Article 4.6 without prejudice to the other rights of SECI under this Agreement. The damages/dues recovered by SECI by encashing the PBG/POI under the PPA, shall be credited to the payment security fund maintained by SECI.

Performance Bank Guarantee/ Payment on Order. Instrument 3.2.1 The Performance Bank Guarantee (PBG) / PBG)/ Payment on Order Instrument (POI) having validity from the date of submission of PBG/POI until (insert validity period as per RfS conditions), submitted for a value of Rs. (in words) under this Agreement, shall be for guaranteeing the commencement of the supply of power up to the Contracted Capacity within the time specified in this Agreement as per format provided in Schedule 1/2. Since the PBG is linked to the Installed Capacity of the Project, and the same is allowed to be modified subsequent to issuance of LoA, in case of revision in the Installed Capacity until the date as per Article 3.1 of this Agreement, for which modified connectivity is applied by RPD for the Project, the RPD will be required to submit the revised PBG corresponding to the revised Installed Capacity prior to issuance of SECI’s consent for this revision. 3.2.2 The failure on the part of the RPD OWPD to furnish and maintain the Performance Bank Guarantee / Payment on Order Instrument Guarantee/ POI valid as per the requirement stated in this Agreement, shall be a material breach of the term of this Agreement on the part of the RPDOWPD. 3.2.3 If the RPD OWPD fails to commence supply of power from the SCSD specified in this Agreement or any further extension thereof duly granted by SECI, subject to conditions mentioned in Article 4.5, or fails to meet any Condition Precedent as per Article 3.4, SECI shall encash the Performance Bank Guarantee / Payment on Order Instrument Guarantee/ POI equivalent to the amount calculated as per liquidated damages penalty applicable under Article 4.6 and Article 3.5 as on the date of encashment without prejudice to the other rights of SECI under this Agreement. The It is to be noted that the damages/dues recovered by SECI by encashing the PBG/POI PBG/ POI, upon the default of the OWPD under the PPA, shall be credited to the payment security fund maintained by SECISECI under the PPA. Upon such encashment and appropriation from the PBG/POI, the OWPD shall, within 30 days thereof, replenish the PBG/POI, in case of partial appropriation, to its original level, and in case of appropriation of the entire PBG/POI, provide a fresh PBG/POI, as the case may be, and the OWPD shall, within the time so granted, replenish or furnish fresh PBG/POI as aforesaid failing which the SECI shall be entitled to terminate this Agreement in accordance with Article .

Performance Bank Guarantee/ Payment on Order. Instrument 3.2.1 The Performance Bank Guarantee (PBG) / PBG)/ Payment on Order Instrument (POIPOI)/ Insurance Surety Bond (Surety Bond) having validity from the date of submission of PBG/POI POI/Surety Bond until (insert validity period as per RfS conditions), submitted for a value of Rs. (in words) under this Agreement, shall be for guaranteeing the commencement of the supply of power up to the Contracted Capacity within the time specified in this Agreement as per format provided in Schedule 1/2. Since the PBG is linked to the Installed Capacity of the Project, and the same is allowed to be modified subsequent to issuance of LoA, in case of revision in the Installed Capacity until the date as per Article 3.1 of this Agreement, for which modified connectivity is applied by RPD for the Project, the RPD will be required to submit the revised PBG corresponding to the revised Installed Capacity prior to issuance of SECI’s consent for this revision1/ Schedule 2/ Schedule 3. 3.2.2 The failure on the part of the RPD SPD to furnish and maintain the Performance Bank Guarantee / Payment on Order Instrument Guarantee/ POI shall be a material breach of the term of this Agreement on the part of the RPDSPD. 3.2.3 If the RPD SPD fails to commence supply of power from the SCSD specified in this Agreement or any further extension thereof duly granted by SECI, subject to conditions mentioned in Article 4.5, SECI shall encash the Performance Bank Guarantee / Payment on Order Instrument Guarantee/ POI equivalent to the amount calculated as per liquidated damages penalties applicable under Article 4.6 as on the date of encashment without prejudice to the other rights of SECI under this Agreement. The It is to be noted that the damages/dues recovered by SECI by encashing the PBG/POI PBG/ POI, upon the default of the SPD under the PPA, shall be credited to the payment security fund maintained by SECISECI under the PPA.

Performance Bank Guarantee/ Payment on Order. Instrument 3.2.1 The Performance Bank Guarantee (PBG) / Payment on Order Instrument (POI) having validity from the date of submission of PBG/POI until (insert validity period as per RfS conditions), submitted for a value of Rs. (in words) under this Agreement, shall be for guaranteeing the commencement of the supply of power up to the Contracted Capacity within the time specified in this Agreement as per format provided in Schedule 1/2. Since the PBG is linked to the Installed Capacity of the Project, and the same is allowed to be modified subsequent to issuance of LoA, in case of revision in the Installed Capacity until the date as per Article 3.1 of this Agreement, for which modified connectivity is applied by RPD for the Project, the RPD will be required to submit the revised PBG corresponding to the revised Installed Capacity prior to issuance of SECI’s consent for this revision. 3.2.2 The failure on the part of the RPD to furnish and maintain the Performance Bank Guarantee / Payment on Order Instrument shall be a material breach of the term of this Agreement on the part of the RPD. 3.2.3 If the RPD fails to commence supply of power from the SCSD and in case of performance shortfall in power supply specified in this Agreement or any further extension thereof duly granted by SECI, subject to conditions mentioned in Article 4.5, SECI shall encash the Performance Bank Guarantee / Payment on Order Instrument equivalent to the amount calculated as per liquidated damages penalties applicable under Article 4.6 and Article 4.4.10 as on the date of encashment without prejudice to the other rights of SECI under this Agreement. The It is to be noted that the damages/dues recovered by SECI by encashing the PBG/POI under the PPA, upon the default of the RPD shall be credited to the payment security fund maintained by SECISECI under the PPA. Further, in case of delay in part/full commencement of supply of power beyond SCSD, prior to declaration of commencement of supply by the RPD from such part/full Contracted Capacity, the RPD shall be required to submit an additional PBG corresponding to the amount of applicable penalty, as per provisions of Article 4.6.1.(a), on that part/full Contracted Capacity.