Common use of Private Land Clause in Contracts

Private Land. (a) In order to ensure efficient implementation of the Project, the Project SPV shall also have the right to acquire (either by acquisition or on a lease basis) any private land in and around the site of any Unit and the details of which are provided in the land portal made accessible as part of the RfS, at its sole discretion, cost and responsibility. In such events, the Project SPV shall have the option to directly enter into lease agreement(s) with the landowner(s) based on the indicative terms and conditions as set out hereinbelow: (i) the minimum lease rent for such private lands shall be INR 1,25,000/- (Rupees One Lakh Twenty Five Thousand only) per hectare per annum or 6% (six percent) of ready reckoner rate, whichever is higher, with a provision of 3% (three percent) escalation on an annual basis; (ii) the tenure for the lease agreement shall be mutually agreed between the landowner and the Project SPV but in any case, shall be for a term not less than the Term of the PPA; (iii) from the effective date of the lease agreement and until the Commercial Operation of Date of the relevant Unit, the Project SPV shall be responsible to pay the lease rentals to the private landowners directly; (iv) post Commercial Operation Date of the entire Project, the Project SPV shall enter into suitable legal arrangements with MSAPL, MSEDCL and the landowners as necessary to enable: (i) MSEDCL to directly deduct the lease rental amounts from the amounts payable in terms of the Power Purchase Agreement; (ii) MSEDCL to deposit such amounts with MSAPL; and (iii) MSAPL to make the payments to the landowners; (v) the Project SPV shall comply with necessary tax laws to ensure that the arrangement above can be implemented for the Project; (vi) such lease agreement should mandatorily have a clause permitting the landowner to unilaterally cancel the lease agreement if the lease agreement does not become effective within a period of 6 (six) months from the date of signing of the lease agreement or such other extended period as may be agreed by the landowner in terms of such lease agreement, at his sole discretion; (vii) any further terms and conditions as applicable to such lease arrangements may be mutually agreed between the Project SPV and the landowner. (b) For the avoidance of doubt, it is clarified that the Project SPV shall be permitted to enter into lease agreements with private landowners at rates higher than as specified in the Section 3.2.2(i) based on the bilateral arrangements between the Project SPV and the private landowners.