Annexure XIV Continued… - Edelweiss

not remedied by SWSL within 90 days of being notified of such default or failure by our Company. SWSL
shall be entitled to terminate this Agreement by giving notice in writing, in case of willful default or material
failure by our Company to perform its obligations (except payment obligations) under this Agreement if such
default or failure is not remedied by our Company within 90 days of being notified of such default or failure by
SWSL. SWSL shall, without prejudice to all its other rights and remedies under this Agreement or under law,
be entitled to terminate this agreement forthwith if our Company does not pay the operation and maintenance
charges within 30 days of the due date for payment.
2. Wind energy purchase agreement dated September 25, 2005 between our Company and Maharashtra
State Electricity Distribution Company Limited (“MSEDCL”)
Our Company entered into a wind energy purchase agreement dated September 28, 2005 with MSEDCL
(“Agreement”) for sale of 100% of the wind energy produced by our Company from its 15MW wind power
project situated at village Sangli, State of Maharashtra (“Wind Power Project”).
As per the Agreement, all the wind energy of the Wind Power Project will be purchased and accepted by the
MSEDCL on the point of delivery. Our Company has undertaken not to sell any wind energy to any other
person. MSEDCL will pay our Company for the wind energy as metered at the point of delivery at the “all-in”
fixed tariff at the rate Rs. 3.50 per KWh for first year, escalated by Rs. 0.15 per annum subject to maximum
tariff of Rs.5.30 per KWh.
Our Company is responsible for all electric losses, transmission and ancillary service arrangements required to
deliver the wind energy from the Wind Power Project to MSEDCL at the point of delivery. MSEDCL is
deemed to be in control of the wind energy and test energy from the Wind Power Project up to and until
delivery and receipt at the point of delivery. MSEDCL may disconnect the Wind Power Project if it determines
that the Wind Power Project may endanger the safety of persons or the continued operations of the Wind
Power Project may endanger the integrity of MSEDCL’s systems or have an adverse effect on the electric
service to MSEDCL’s other consumers. Further our Company will be responsible for obtaining all financing
necessary to construct, operate and maintain the Wind Power Project during the validity of the Agreement and
it shall also be fully responsible for obtaining and maintaining the validity of any and all licenses, permits and
approvals necessary for the construction and operation of the Wind Power Project.
The Agreement is effective from the date of start of operation i.e. from September 29, 2005. The sale of wind
energy under this Agreement shall be governed by Maharashtra Electricity Regulatory Commission’s
(“MERC”) order dated November 24, 2003 subject to any further order passed by MERC and shall be subject
to all necessary sanctions/permissions/approvals as may be required to be obtained from the MERC or any
other governmental authority. The Agreement shall remain effective until the thirteenth anniversary of
commercial operations date unless renewed or extended.
II.
II.I
PROJECT UNDER CONSTRUCTION
270 MW power plant at Korba, State of Chhattisgarh
1. Power purchase agreement dated February 26, 2007 between our Company and Gujarat Urja Vikas
Nigam Limited (“GUVNL”)
Our Company entered into a power purchase agreement dated February 26, 2007 with GUVNL (“PPA”) for
sale and supply of 200 MW power (“Contracted Capacity”) from its 270 MW coal based power project being
setup in district Korba, State of Chhattisgarh (”Korba Project”).
The entire Contracted Capacity shall at all times be for the exclusive benefit of GUVNL who will have the
exclusive right to purchase such Contracted Capacity from our Company. As per the PPA, the responsibilities
of our Company includes executing the Korba Project in a timely manner so as to enable achievement of the
COD of each of the units no later than the scheduled COD, as defined in the PPA, such that the Contracted
Capacity can be made available. The responsibilities of GUVNL includes procuring the interconnection and
transmission facilities to enable the evacuation of the Contracted Capacity from the delivery point to
GUVNL’s customers networks, payment of the transmission charges and making arrangements for the
evacuation of the inform power from the power station.
From the COD of the first unit, GUVNL shall pay to our Company the monthly tariff payment in accordance
with schedule six of the PPA. The tariff shall be paid in two parts comprising of capacity and energy charge.
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