Annexure XIV Continued… - Edelweiss

special purpose vehicle viz. to establish and operate the Project. Accordingly, the IA was transferred to Aryan
M.P. Power Generation Private Limited, our Subsidiary.
The IA will remain in force from May 27, 2008 to the signing of power purchase agreement between our
Company and the M.P. Government or its nominated agency. The M.P. Government may terminate the IA by
serving a thirty (30) days notice in case of an event of default occurs, in case our Company fails to cause
financial closure to occur on or before twelve months from the date of the IA or in the event where Company
is unable to perform any obligations required to be performed due to force majeure for a continuous period of
12 months. Our Company may terminate the IA in the event of enactment of any law or regulation or any
subsequent act of any government authority which makes the performance of the IA impossible for any party.
In the event of non implementation of the Sidhi Project, the corresponding support/commitment of the M.P.
Government as indicated in the IA with regard to land, water, coal block etc. shall be deemed to be withdrawn.
Further our Company would be fully responsible for any damage or loss arising out of the construction,
operation of maintenance of the Sidhi Project to any property or persons and has undertaken to also indemnity
the M.P. Government on such account.
IV
IV.I
POWER PROJECT UNDER DEVELOPMENT
1,200 MW power plant at Champa-Janjgir, State of Chhattisgarh
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 1100
(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 and Janjgir-Champa district, State of
Chhattisgarh (“Champa Project”). The IA replaces the memorandum of understanding dated January 8, 2008
among our Company, Government and the CSPHCL for the implementation of the Champa 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 Champa 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 Champa 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 Champa 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 IA.
The IA shall continue in full force and effect for the life of the Champa Project. our Company is required to
prepare rehabilitation and resettlement plan for the Champa 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 Champa 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.
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