Annexure XIV Continued… - Edelweiss

The term of the PPA is for a period of twenty years from the date of commencement of supply of electricity by
SCPL 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 August 1, 2009 among Spectrum Coal and Power Limited, our
Subsidiary (“SCPL”), Government of Chhattisgarh (“Government”) and Chhattisgarh State Power
Holding Company Limited (“CSPHCL”)
SCPL entered into an implementation agreement dated August 1, 2009 with the Government and CSPHCL
(“IA”) for the implementation of the thermal power project having an installed capacity of 100 (plus minus
20%) MW along with associated water pipelines, captive coal mines (if any), fuel transport systems, ash
disposal system and transmission lines at Ratija, State of Chhattisgarh (“Ratija Project”). The IA replaces the
memorandum of understanding dated February 1, 2008 among SCPL, Government and the CSPHCL for the
implementation of the Ratija Project.
As per the terms of the IA, SCPL 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 Project at the energy (variable) charges, as
determined by the appropriate electricity regulatory commission. In the event SCPL is allocated captive coal
block also in the State of Chhattisgarh for supply of coal to the Project, then SCPL 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 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 SCPL.
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 SCPL for the sale of power has been detailed in the IA.
The IA shall continue in full force and effect for the life of the Ratija Project. SCPL is required to prepare
rehabilitation and resettlement plan for the Ratija Project as per the prevalent policy of the state government
and implement rehabilitation and resettlement of the project affected persons accordingly. SCPL shall bear all
costs related to such rehabilitation and resettlement. SCPL is required to achieve the COD of the first unit of
the Ratija Project with 65 or 70 months from August 1, 2009.
The IA can be terminated by serving a sixty (60) days notice by the Government in case of an event of default
by SCPL or by SCPL 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. SCPL can also terminate
the IA, in the event of enactment of any law or regulation or any subsequent act of any Governmental
Instrumentality, which makes the performance of this IA impossible for it.
4. Bulk power transmission agreement dated April 30, 2009 between SCPL and Powergrid Corporation
of India Limited (“PGCIL”)
SCPL entered into a bulk power transmission agreement dated April 30, 2009 with PGCIL (“Transmission
Agreement”) to avail long term open access in accordance with the Central Electricity Regulatory
Commission (Open Access in Inter-State Transmission) Regulation, 2004 dated January 30, 2004 and
Electricity Act, 2003 to the transmission system of PGCIL.
The Transmission Agreement shall be valid for twenty five (25) years from April 30, 2009. The date from
which open access is granted will be from the date of availability of the dedicated transmission system (i.e.
Spectrum Coal Power Limited-WR Pooling Station near Sipat 400 KV D/C line) and availability of
transmission system of various strengthening projects. SCPL shall bear the transmission charges corresponding
to 100 MW permitted through long term open access from the date of commencement of the open access.
SCPL is required to provide certain securities as detailed in the Transmission Agreement. During the tenure of
the Transmission Agreement if any of the covenants and conditions recited in it are found inconsistent with the
provisions of the Electricity Act, 2003 and/or applicable notifications/rules/ regulations issued either by CERC
or by GOI as per the provisions of the Electricity Act, 2003 then notwithstanding anything contained in the
Transmission Agreement, the said rules and regulations shall prevail.
373