Annexure XIV Continued… - Edelweiss

5. Fuel Supply Agreement between Reliance Natural Resources Limited (“Seller”) and Spectrum Coal
and Power Limited (“SCPL”) dated April 27, 2009 (“RNRL FSA”)
SCPL has entered the RNRL FSA with Reliance Natural Resource Limited for purchase of coal rejects
generated during the beneficiation of raw coal of Seller. SCPL intends to use the rejects purchased in its 50
MW power plant being set up at Ratija, Korba (Chhattisgarh).
The Seller shall sell and SCPL shall buy rejects equivalent to annual contracted quantity. The annual
contracted quantity under this agreement is 420,000 (plus minus) 10 per cent tonnes per year and tentative
monthly quantity shall be 35,000 (plus minus) 10 per cent tonnes. It is agreed between the Seller and SCPL
that the price of reject for an annual quantity of unto 350000 tonnes delivered at SCPL’s Ratija Washery shall
be as specified by the Seller From time to time and for an annual quantity over and above 350000 tonnes and
up to annual contracted quantity of 42000 (plus minus) 10 per cent tonnes, shall be at the minimum base price
of Rs. 200/- per tonne.
In the event SCPL is prevented /disabled under law from using rejects for reasons beyond their control, owing
to changes in applicable environmental and/or statutory norms, howsoever brought into force; SCPL shall have
the right to terminate the RNRL FSA, subject to a prior written notice to the Seller of not less than thirty days.
In the event the Seller is prevented /disabled under law from selling rejects for reasons beyond his control,
owing to changes in applicable environmental and/or statutory norms or permanent stoppage in the generation
of rejects at the SCPL washery, the Seller shall have the right to terminate the RNRL FSA subject to a prior
written notice to the SCPL of not less than thirty days. The RNRL FSA unless terminated is valid for a period
of fifteen (15) years from the commencement date of operation or eighteen years from April 1, 2009,
whichever is earlier, however, in the event SCPL fails to achieve the commercial date of operation of the 50
MW power project within 42 months from the April 1, 2009, the Seller shall have the right to terminate the
RNRL FSA.
III.
III.I
POWER PROJECTS UNDER IMPLEMENTATION
30 MW power plant at Chakabura, Korba district, State of Chhattisgarh (Phase II)
1. Implementation agreement dated February 18, 2010 among our Company, the Government of
Chhattisgarh (“Government”) and Chhattisgarh State Power Holding Company Limited
(“CSPHCL”)
Our Company entered into an implementation agreement dated February 18, 2010 with the Government and
CSPHCL (“IA”) for the implementation of the thermal power project having an installed capacity of 30 (plus
minus 20%) MW along with associated water pipelines, captive coal mines (if any), fuel transport systems, ash
disposal system and transmission lines at Chakabura, Korba District, State of Chhattisgarh (“Chakabura
Project (II)”). The IA replaces the memorandum of understanding dated September 22, 2008 among our
Company, Government and the CSPHCL for the implementation of the Chakabura Project (II).
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 Chakabura Project (II) 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 Chakabura Project (II),
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 Chakabura
Project (II), 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 IA.
The IA shall continue in full force and effect for the life of the Chakabura Project (II). Our Company is
required to prepare rehabilitation and resettlement plan for the Chakabura Project (II) as per the prevalent
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