Annexure XIV Continued… - Edelweiss

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 Ratija Project with 65 or 70 months from February 18,
2010.
The IA can be terminated by serving a sixty (60) days notice by the Government in case of an event of default
by our 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
Company 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.
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 30 MW at Chakabura, Korba
District, State of Chhattisgarh (“Chakabura Project (II)”).
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 Chakabura Project (II) and 5% of the net power generated by the Chakabura Project
(II) on an annualized basis in accordance with the tariff structure laid down in the PPA. The obligations of our
Company include executing the Chakabura Project (II) 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.
III.II
600 MW power plant at Raigarh, State of Chhattisgarh
1. Implementation agreement dated January 15, 2010 among TRN Energy Private Limited (“TRN”), the
Government of Chhattisgarh (“Government”) and Chhattisgarh State Power Holding Company
Limited (“CSPHCL”)
TRN entered into an implementation agreement dated January 15, 2010 with the Government and CSPHCL
(“IA”) for the implementation of the thermal power project having an installed capacity of 625 (plus minus
20%) MW along with associated water pipelines, captive coal mines (if any), fuel transport systems, ash
disposal system and transmission lines at Raigarh District, State of Chhattisgarh (“Raigarh Project”). The IA
replaces the memorandum of understanding dated June 11, 2007 among TRN, Government and the CSPHCL
for the implementation of the Raigarh Project.
As per the terms of the IA, TRN 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 Raigarh Project at the energy (variable) charges,
as determined by the appropriate electricity regulatory commission. In the event TRN is allocated captive coal
block also in the State of Chhattisgarh for supply of coal to the Raigarh Project, then TRN 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 Raigarh 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 TRN.
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 TRN 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 Raigarh Project. TRN is required to prepare
rehabilitation and resettlement plan for the Raigarh Project as per the prevalent policy of the state government
and implement rehabilitation and resettlement of the project affected persons accordingly. TRN shall bear all
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