Annexure XIV Continued… - Edelweiss

The full capacity charges shall be payable based on the Contracted Capacity at normative availability and the
incentive shall be for availability beyond 85% as provided in schedule six to the PPA. In case of availability
being lower than the normative availability, the capacity charges shall be payable on proportionate basis.
The PPA shall be valid from February 26, 2007 until the 25 th anniversary of the COD of the Korba Project
unless terminated earlier in accordance with the PPA.
2. Power purchase agreement dated January 4, 2011 between our Company and Chhattisgarh State
Power Trading Company Limited (“CSPTCL”)
Our Company has entered into a power purchase agreement dated January 4, 2011 with CSPTCL (“PPA”) for
sale of power from the coal based power project with an installed capacity of 270 MW at village Kasaipalli,
Korba, State of Chhattisgarh (“Korba Project”).
As per the PPA, our Company has undertaken to sell to CSPTCL the contracted power i.e. sum of 30% of the
aggregate capacity of the Korba Project and 5% of the net power generated by the Korba Project on an
annualized basis in accordance with the tariff structure laid down in the PPA. The obligations of our Company
include executing the Korba Project in a timely manner so as to enable each of the units and the power station
to be commissioned not later than its scheduled commercial operation date and making available the
contracted output and contracted capacity through the use of prudent utility practices to CSPTCL.
The term of the PPA is for a period of twenty years from the date of commencement of supply of electricity by
our Company to CSPTCL, unless extended in accordance with the PPA. The PPA can be terminated upon the
happening of events of default by either of the parties in accordance with the PPA.
3. Implementation agreement dated July 14, 2008 among our Company, the Government of
Chhattisgarh (“Government”) and the Chhattisgarh State Electricity Board (“Board”)
Our Company entered into an implementation agreement dated July 14, 2008 with the Government and the
Board (“IA”) for the implementation of the thermal power project having an installed capacity of 250 (plus
minus 20%) MW along with associated water pipelines, captive coal mines (if any), fuel transport systems, ash
disposal system and transmission lines at Korba, State of Chhattisgarh (“Korba Project”). The IA replaces the
memorandum of understanding dated June 19, 2006 among our Company, Government and the Board for the
implementation of the Korba Project.
As per the terms of the IA, our Company will provide, on an annualized basis, to the Government or agencies
nominated by the Government (“Purchasing Entity”) five (5) per cent of the net power (i.e. gross power
generated minus the auxiliary consumption) generated by the Korba Project at the energy (variable) charges, as
determined by the appropriate electricity regulatory commission. In the event our Company is allocated
captive coal block also in the State of Chhattisgarh for supply of coal to the Korba Project, then our Company
will provide, on an annualized basis, to the Purchasing Entity seven and half (7.5) per cent of the net power
(i.e. gross power generated minus the auxiliary consumption) generated by the Korba Project, at the energy
(variable) charges, as determined by the appropriate electricity regulatory commission. The Government, the
Board or their assignees have not guaranteed the purchase of power from our Company.
In addition to the above, the Government shall have the first right to purchase power up to 30 (thirty) percent
of the aggregate capacity of the generating unit(s) for a period of 20 (twenty) years, through its nominated
agency, at the rate to be approved by the appropriate electricity regulatory commission. The manner in which
offer shall be made by our Company for the sale of power has been detailed in the PPA.
The IA shall continue in full force and effect for the life of the Korba Project. Our Company is required to
prepare rehabilitation and resettlement plan for the Korba Project as per the prevalent policy of the state
government and implement rehabilitation and resettlement of the project affected persons accordingly. Our
Company shall bear all costs related to such rehabilitation and resettlement. Our Company is required to
achieve the COD of the first unit of the Korba Project with 65 or 70 months from July 14, 2008.
The IA can be terminated by serving a sixty (60) days notice by the Government in case of an event of default
by the Company or by our Company in the event of a event of default by the Government. The IA can be
terminated by either party or in the event where either party is unable to perform any obligations required to be
performed due to force majeure (as defined in the IA) for a continuous period of eighteen (18) months. Our
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