Annexure XIV Continued… - Edelweiss

Company and PTC. However, if as a result of a change in any law enacted by the Parliament of India after July
20, 2005, our Company or PTC represent that the tariff has been adversely affected, the tariff may be revised
by PTC or our Company, based on the information and full details of such impact being furnished by our
Company or PTC respectively.
As per the terms of PPA, our Company shall not sell energy to any other party other than PTC and is obligated
to supply saleable energy of not less than 138.24 metric unit in any year, except in case of a force majeure
event, as defined in the PPA. If our Company fails to deliver the stipulated level or falls in generation below 20
MW on any day, then it shall be liable to pay PTC, for all open access charges paid or committed by PTC.
The term of the PPA is shall be twenty five (25) years from the COD. The term shall be reduced in the event
where our Company and PTC are not able to agree on applicable tariff from the eleventh year of the COD and
the PPA shall stand terminated upon the tenth anniversary of ; (ii) the term shall be increased in the event our
Company continues to operate the project after twenty fifth (25 th ) year from the COD and PTC agrees to
continue to buy the saleable energy at mutually agreed tariffs. Also, this PPA may be terminated on an event of
default by either party as contemplated under this PPA.
I.II
15 MW wind power project at Sangli, State of Maharashtra
1. Operation and maintenance agreement dated January 21, 2006 between our Company and Suzlon
Windfarm Services Limited (“SWSL”)
Our Company entered into an operation and maintenance agreement dated January 21, 2006 with SWSL (the
“O&M Agreement”) for the operation and maintenance of the wind turbine generators (“WTG”) and other
equipment (collectively, the “Equipment”) for the wind power project at Sangli, State of Maharashtra.
The responsibilities of our Company includes obtaining insurance policies for the Equipments; payment of all
statutory dues levied by governmental authorities and attributable to our Company in respect of the wind farm
or the Equipments; payment of the cost of repairs or replacement of Equipment repairs and entering into the
necessary agreement with state electricity boards or power companies with regard to distribution of power
generated by the WTGs.
The responsibilities of SWSL includes establishing and maintaining in the vicinity of the wind farm, among
other things, suitable offices and storage facilities, service centres; maintaining transformers, trivector meter
for measuring the energy generated by the WTG; observing all laws, statutory provisions or norms laid down
by the government in force concerning the operation and maintenance of the Equipment; duly intimating any
occurrence or the likely occurrence of an event giving rise to or likely to give rise to a claim under the
insurance policy of our Company; allowing persons duly authorized by our Company, with prior intimation, to
inspect and examine the equipment; and providing sufficient manpower and proper security to wind farm and
necessary labor and other competent personnel as are required to perform the operation and maintenance
services. SWSL shall perform the services in relation to the Equipment in accordance with (i) the operations
and maintenance manuals, the safety management plans and procedures and as per the manufacturers
recommendations, where applicable or (ii) in accordance with accepted industry practices.
SWSL has warranted a combined machine availability of ninety five (95) per cent per year for all the WTG’s
put together covered under the O&M Agreement. Machine availability means the ratio of actual number of
annual hours for which the WTG are in a state of complete readiness to generate power subject to the grid and
wind availability. SWSL is to ensure that the loss of power during transmission between WTG meter and
SEB/SEB authorised meters located within the windfarm shall not be more than five (5) per cent per annum for
all the WTG’s put together. In the event the said loss exceeds five (5) per cent for all WTG’s put together in
any year, SWSL shall compensate our Company for such loss at two (2) per cent of annual operation and
maintenance charges for every one (1) per cent of excess transmission loss over five (5) per cent subject to a
maximum of ten (10) per cent annual operation and maintenance charges. Liability of SWSL arising out of its
breach of warranties shall be cumulatively restricted to 25% of annual O&M charges payable by our Company
for that year. However, SWSL stands liable to our Company for all the repairs, operations, maintenance costs,
replacement costs for all the 12 WTG's. All costs/ expenses incurred for the aforesaid activities to be borne by
SWSL.
The term of O&M Agreement is ten years commencing from October 01, 2005 to September 30, 2015.
However, Company shall be entitled to terminate this Agreement by giving notice in writing, in case of willful
default or material failure by SWSL to perform its obligation under this Agreement if such default or failure is
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