Annexure XIV Continued… - Edelweiss

costs related to such rehabilitation and resettlement. TRN is required to achieve the COD of the first unit of the
Ratija Project with 65 or 70 months from January 15, 2010.
The IA can be terminated by serving a sixty (60) days notice by the Government in case of an event of default
by TRN or by TRN 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. TRN 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 TRN Energy Private Limited, our
Subsidiary (“TRN”) and Chhattisgarh State Power Trading Company Limited (“CSPTCL”)
TRN 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 600 MW at Raigarh District, State of
Chhattisgarh (“Raigarh Project”).
As per the PPA, TRN has undertaken to sell to CSPTCL the contracted power i.e. sum of 30% of the aggregate
capacity of the Raigarh Project and 5% of the net power generated by the Raigarh Project on an annualized
basis in accordance with the tariff structure laid down in the PPA. The obligations of TRN include executing
the Raigarh 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
TRN 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.III
1,200 MW power plant at Sidhi, State of Madhya Pradesh
1. Implementation Agreement dated May 27, 2008 and amended on October 26, 2009 between our
Company and the Governor of Madhya Pradesh (“M.P. Government”) for 1200 MW coal based
thermal power project in the State of Madhya Pradesh
Our Company and the M.P. Government entered into an implementation agreement dated May 27, 2008
(“IA”) for the implementation of coal based thermal power project having installed capacity of 1200 MW to be
established at village Musamudi and Bhumka, district Sidhi, State of Madhya Pradesh, India (“Sidhi
Project”). The IA replaces the memorandum of understanding, dated January 16, 2007 which was amended on
December 26, 2007, between our Company and the M.P. Government for setting up of the Project.
As per the IA, our Company is to provide, on an annualized basis to the M.P. Government, five (5) percent of
the net power generated by the Sidhi Project at variable charges determined by the appropriate commission. In
the event our Company is also allocated captive coal block in the State of Madhya Pradesh for supply of coal
to the Sidhi Project, then our Company will provide, on an annualized basis, to the M.P. Government seven
and a half (7.5) percent of the net power generated by the Sidhi Project at variable charges determined by the
appropriate commission. While the M.P. Government does not guarantee the purchase of power from our
Company except for the power mentioned above, the M.P. Government or its nominated agency shall have the
first right of refusal to purchase power up to thirty percent of the aggregate capacity of the generating units for
a period of twenty (20) years through its nominated agency, at the rate to be approved by the appropriate
commission. Our Company is required to enter into a separate wheeling agreement to transfer power to its
consumers or licensee in accordance with the provisions of the Electricity Act, 2003 and in accordance with
applicable regulations either through MP Power Transmission Company Limited or PGCIL/other grid lines or
its own dedicated lines as the conditions necessitate and as may be technically feasible. Our Company shall
achieve the commercial date of operation within sixty (60) months from the date of the IA.
Our Company is permitted to incorporate a public/private limited company for the implementation of the
Project with its registered office within the State of Madhya Pradesh. All rights and obligations under the IA
shall thereafter be transferred to the new company. Unless otherwise permitted by the Government, the
aggregate equity contribution of our Company shall not be less than fifty one (51) per cent during the
construction period and until two years following the commencement of commercial operations. Accordingly,
an amendment agreement was executed on October 26, 2009 to amend the IA to, among other things, to form a
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