Tender Biomass Phase III
Tender Biomass Phase III
Tender Biomass Phase III
for
in
Private Sector
on
in the
State of Punjab
OPPORTUNITIES
for
and
ENTREPRENEURS
for
SETTING UP
of
in
PUNJAB
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CONTENTS
2. Punjab at a glance 5
3. About PEDA 6
6. Evaluation Methodology 11
8. Performance Guarantee/Security 17
Guidelines
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PUNJAB
INVITES YOU
India’s New Economic Policy is investment friendly. Punjab has also taken a
Punjab
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PUNJAB AT A GLANCE
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ABOUT PEDA
It is a matter of pride that PEDA has been awarded “The Best Performance Award”
for propagating the objective of Non-conventional and Renewable Energy Sources
by MNES,GOI and BEST BDA AWARD by IREDA.
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Punjab is predominantly rich in agriculture and contributes the major share to the
grain basket of India. It has a high level of agricultural productivity due to its
sophisticated techniques which compare well with the advanced countries of the
world.
The agriculture production in the last three years has shown a remarkable upward
trend and Punjab once again has surplus production of major crops. It is a matter of
pride that though Punjab has only 1.5 percent of the total country’s cultivable area,
yet it produces 25 percent of country’s cotton, 22 percent of wheat and 55 percent of
rice. Punjab also possesses the most developed and extensive network of canals in
the country.
Punjab has so far been meeting its electrical power requirements primarily through
conventional large thermal and hydro power generation. Whereas, hydro power
generation has a tendency to fluctuate depending upon the availability of water,
thermal power generation has to depend on coal which has to be transported from
pit heads of eastern part of India involving large distances. Moreover, the cost of coal
has doubled in the preceding ten years and is expected to continue to escalate.
Resultantly, the cost of generation from coal will become prohibitive in the years to
come. Obviously, Punjab is strategically at a disadvantage in its efforts to augment
its power generation potential from oil, gas and coal.
The installed capacity of generation of power in the state is of the order of 5700 MW.
As per estimates, the demand for power by the year 2007 would go up to more than
9000 MW. From this it is evident that the state would continue to face the power
deficit during the 11th plan period. Punjab has substantial renewable energy potential
in the areas of Biomass / Agrowaste. The availability of Biomass / Agrowaste in the
state is sufficient to produce about 1000MW of electricity.
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acceptable and viable in view of the steep increase of cost of several other forms of
energy and the rapid depletion of their sources and latest technologies developed in
the design of such projects. Biomass / Agrowaste based power projects have
attracted the attention of state and Central Govt. and also have been given priority
due to :
Propelled with the aim to promote and install Biomass / Agrowaste based project in
the state of Punjab, PEDA has planned to develop some of the available potential
Talukas / Tehsils in which Biomass Assessment has been carried out.
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Pre-Bid Conference
Bidders are requested to send their queries in writing so as to reach PEDA in a week
prior to the Pre-Bid Conference. The primary purpose of this conference will be to
make clarifications on any queries on the bidding and site allotment process.
Minutes of Meeting, including the text of the questions raised and the responses
given, will be transmitted to all Bidders. Any amendments / modifications of the
proposal documents which may become necessary as a result of the Pre-Bid
Conference shall be made by PEDA exclusively through the issue of an Addendum
and not through the minutes of the Pre-Bid meeting.
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Eligibility To Bid
Bidders should meet the following minimum eligibility criteria mentioned below for the
year 2005-06 :
Where the bids are submitted by a consortium of firms, all the participating firms
should jointly meet the minimum eligibility requirement for each criteria.
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EVALUATION METHODOLOGY
The proposals of only those firms meeting the eligibility criteria specified above
should be taken up for detailed evaluation. The bidding shall be a two-stage process:
Stage I: In the first stage the financial status of the bidders shall be evaluated for
determining the eligibility .
The promoter i.e. the firm or the consortium of firms shall demonstrate that
the firm has access to or has available liquid assets, unencumbered
tangible assets, lines of credit and other financial means sufficient to meet
the construction, cash flow net of the promoters commitments for other
contracts/projects. The details of other commitments for projects must be
indicated separately.
Stage II: The financial bid of only the eligible bidders shall be opened for evaluation.
The bidders are required to quote the percentage revenue share that they
are willing to give to PEDA for allotment of each site(s), as a percentage
share of the saleable electricity. The monetary equivalent of this %age of
electricity sold to PSEB/third party shall be payable to PEDA. The bidders
are required to quote the %age electricity share to PEDA for all the 30
years from the date of commercial operation of the plant. Bidders will
quote the energy share for each year and no year should be blank
year/without offering any share. The energy share shall be offered
separately for each site in the enclosed format placed at Annexure-IV.
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Both these envelopes shall be placed in sealed large outer envelope. Each of the
envelopes will bear the name and address of the bidder and details of the project bid
for, as follows:
This section delineates the information, which forms part of the bidder capability and
profile. This information is indispensable, and shall form the basis of the pre-
qualification evaluation and has to be provided in reasonable detail. The spirit of
this section is that the complete details should be amenable for check and evaluation
without any back-reference to the Bidder.
The proposal must be prepared in indelible ink and must be signed by the authorized
representative of the Bidder. The letter of authorization must be confirmed by a
written power of attorney accompanying the proposals. In addition, all pages of the
proposals must be initialed by the person signing the proposal.
(a) Financial Capability Proposal: The promoters shall submit in the Financial Capability
proposals, the proof of financial standing backed by audited financial balance sheet for
the last three years (FY 2003-04, 2004-05, 2005-06 ) and details of the current liquid
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assets. The method of mobilization of resources for funding the project cost shall be
indicated.
1. Details of technology offered for the project: the proposal shall indicate the
details of technology offered, proposed installed capacity in MW, number, pressure,
capacity & type of boilers and turbines and make of equipment. Technologies based
on biomass gasification and pyrolsis which are not fully established in the country are
not acceptable as technology options. The proposal shall clearly state the
capabilities with regard to a firm fuel linkage in the form of biomass / agro
waste sourcing, collection, transportation & storage throughout the year for
continuous operation of the plant.
Scheme for Implementation and Operationalization: the bidder shall provide the
following:
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(d) Application Processing Fees: An application processing fee of Rs. 5,000 per
site/taluka is payable to PEDA. The bidders should append a Demand Draft in favour of
PEDA payable at Chandigarh. Proposals without Application processing fee shall be
rejected.
(e) Earnest Money Deposit: The Bidder shall furnish, as part of his proposal, an Earnest
Money Deposit amount as follows:
The Earnest Money Deposit shall, at the Bidder’s option, be in the form of a bank draft or a
bank guarantee from a scheduled bank which has been ascertained by the Bidder to be
acceptable to PEDA. Letter of credit and bank guarantees issued as security for the proposal
shall be valid for 180 days from the last date of submission of the proposal specified in the
bid invitation advertisement.
Any proposal not accompanied by an acceptable Earnest Money Deposit shall be rejected
by PEDA. The Earnest Money Deposit of the Bidders, who do not qualify for the stage II of
the bidding process, will be returned within 90 days from the last date of submission of the
proposal specified in the bid invitation advertisement.
The Earnest Money Deposit of the unsuccessful Bidders at the stage II of the bidding
process, will be returned within 180 days from the last date of submission of the proposal
specified in the bid invitation advertisement.
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The Earnest Money Deposit of the successful Bidder will be discharged when the Bidder has
signed the Memorandum of Understanding with PEDA and furnished the required
performance security.
The Earnest Money Deposit will be forfeited under the following conditions.
i) If the Bidder withdraws his proposal after submission to PEDA during the
period of proposal validity.
ii) In the case of a successful Bidder, if he fails within the specified time limit to
a. Sign the Agreement; or
b. Furnish the required performance security for the construction phase
(f) Supporting Documents: The bidders are required to submit following supporting
documents as part of their proposal:
The bidders are required to quote the percentage revenue share that they are willing
to give to PEDA for allotment of each site/taluka, as a percentage share of the
saleable electricity. The monetary equivalent of this % of electricity sold to
PSEB/third party shall be payable to PEDA. The bidders are required to quote the %
electricity share to PEDA for each site in the prescribed format for energy share
separately for each site. The difference in minimum and maximum energy share
offered in any year will not exceed beyond 50% e.g. the minimum energy share
offered in any year is say 5%, then the maximum energy share in any year cannot
exceed 7.5% energy share.
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PERFORMANCE GUARANTEE/SECURITY
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16. The terms and conditions for implementation of the project shall be formalized
through signing of Implementation Agreement with PEDA. Power Purchase
agreement shall be signed by the developer with the PSEB for Sale of Power.
17. In accordance with the NRSE Policy-2006, the cost of laying the transmission
lines & associated equipment for evacuation of power to the PSEB Grid Sub
Station shall have to be borne by the private developers.
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Note:
i) Immediately after the allotment of site(s) the prospective bidders will sign the
MoU with PEDA within 30 days from the date of allotment of Biomass power
plant site(s).
ii) After approval of DPRs the IPPs will sign the Implementation Agreement for
implementation of the project with PEDA and thereafter PPA with PSEB within
30 days after approval of tariff by PSERC.
iii) The developers will stick to the Implementation Time Schedule except for
reasons beyond the control of the private developer, in case the bidders do
not adhere to the implementation schedule their sites will be cancelled.
iv) Any delay taking place in tariff approval by PSERC & PPA signing by PSEB
must be informed in writing by the company.
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APPLICATION FORM
(TO BE FILLED IN BY THE SOLE BIDDER FIRM/ LEAD FIRM IN THE BIDDING CONSORTIUM)
A. GENERAL
1.3 a) Telephone :
b) Telex :
c) Fax :
d) E-mail
1.4 Telegraphic Address :
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B. FINANCIAL
b) Paid up :
b) Paid up :
2004-2005:_____________
2005-2006:_____________
2004-2005:_____________
2005-2006:_____________
2005-2006:_____________
Address:_______________
______________________
Contact Person_________
Tel:___________________
Fax:__________________
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C. PAST EXPERIENCE
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D. PROJECT PROPOSAL
1.1 Details of sites proposed to be utilized :
1.2 Has the project sites been visited by the engineers of the :
applicant company?
I/We hereby, certify that the information furnished by me/us is a true statement of
facts.
(Name, Designation
of person signing)
Date:
Place:
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NOTES:
1. Where the space provided above is not sufficient extra sheet may be used.
2. The participant shall submit all the pages duly signed and stamped by the
authorized person.
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ii. The developers for obtaining the approval of project proposal will submit their
applications to the Chief Executive, PEDA. Their project proposal will be
forwarded to the Government for approval.
iii. The project proposal shall be considered by the Empowered Committee for
necessary approvals/ clearances by the State through a Single Window
Mechanism and in a time bound manner. The clearance/approvals shall be
accorded within 60 days from the date of submission of completed applications
on the required prescribed formats of various clearance issuing bodies /
departments along with the requisite fees to the State Nodal Agency. Private
developers shall however be required to fulfill all statutory / legal requirements
with regard to project reports/documents submission as per requirement of
approval/clearance issuing bodies/ organizations under the Govt. rules,
regulations & Acts.
iv. After approval of the project proposal, and after issuing of all statutory
clearances, the Producer shall enter into an Implementation Agreement with
PEDA within a period of one month from the date of approval of the project.
v. Private developers shall file petition in the PSERC for tariff approval within 15
days after signing of the implementation agreement with PEDA and PSEB/
LICENSEES shall sign the Power Purchase Agreement within 45 days from the
date of issue of tariff order by the PSERC after the submission of requisite
documents by the developers.
vi. If the applicant does not take effective steps to implement the project within six
months from the date of approval of the project proposal, the Agreement could be
terminated and their project proposal will be cancelled (i.e. at least 10% of the
total project cost should be incurred).
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The following minimum requirements are to be fulfilled for the purpose of term
loan from IREDA :
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ANNEXURE-1
SOURCE : Estimated major surplus biomass availability data based on reports prepared under
the National Biomass Resource Assessment Programme of MNES, GOI.
The biomass assessment reports prepared under the National Biomass Resource
Assessment Programme of MNES, GOI are available on a payment of Rs. 5000/- per
report.
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Annexure-II
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Annexure-III
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Annexure-IV
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Annexure-V
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ANNEXURE-VI
(Rs. in lacs)
1 Turn Over
2 Net worth
3 Cash flow
(Net profit +
Depreciation+Non
Cash Items -
Repayment of long
term Debt excluding
previous Debt)
Notes:
i) The company shall enclose the brief notes to the financial parameters considered by the
firm/company enabling us to understand the values & reasoning for such considerations.
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Annexure-VII
CERTIFICATE
participating Companies or its/their promoter(s) is/are not in default to any of the financial
institutions/banks in respect of any dues towards term loan, working capital loan or buy back
Date:_________ For_______________
(Company Name)
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AND WHEREAS it has been stipulated by you in the said bid that the bidder shall furnish you
a Bank Guarantee by a recognised bank for the sum specified therein as security for
compliance with the performance obligations, in compliance to the performance obligations
in accordance with the bid document/brochure/agreements/memorandum of understandings
to be signed.
______________________________ _______________________________
Date: ____________________
Address: __________________
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1. If the Bidder withdraws its Bid during the period of bid validity specified by the Bidder
in the Bid or
2. If the Bidder, having been notified of the acceptance of his bid by the Agency during
the period of bid validity:
a) Fails or refuses to sign the Memorandum of Understanding for setting up of
the Biomass Power Projects as offered by the bidder or
b) Fails or refuses to furnish the Performance Security, in accordance with the
Instructions to Bidders in the bid document:
We undertake to pay the Agency up to the above amount upon receipt of its first
written demand, without the Agency having to substantiate its demand, provide that in its
demand the Agency will note that the amount claimed by it is due to it owing to the
occurrence of one or both of the two conditions, specifying the occurred condition or
conditions.
This guarantee will remain in force up to and including Ninety (90) days after the
period of bid validity and any demand in respect thereof should reach the Bank not later
than the above date.
(Signature of Bank)
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AND
Whereas the PEDA has decided, in line with the policy guidelines of the government
of Punjab, to allow the setting up of Biomass power generation project (herein after referred
as project(s)) at its own on Build Operate & Own (BOO) basis in private sector and has
invited proposals for private investments in such Projects
interalia___________________________ Project in ___________________________ Distt.
____________________ (Punjab) of the capacity of __________ MW.
AND WHEREAS the Company/Promoter has decided to set up the said project if
found viable, as well as the transmission system associated therewith for evacuation of
Power as per Punjab Govt. Notification No. 10/106/2006-STE(1)/5390 dated 24th Nov’2006
AND WHEREAS the PEDA and the Company/Promoter have held discussions and
the Company/Promoter had agreed for implementation of the said project and are desirous
of reducing in writing the terms and conditions of the said understanding
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1. The Company/Promoter is desirous of and have submitted its offer to the PEDA for
investigations and if found viable for implementation of the proposed
_______________________Biomass power Project at
Site(s)_______________________ in ______________________ Distt. of Punjab
hereinafter referred to as the Project(s).
2. The PEDA has accepted the proposal of the Company/Promoter and company is
preparing the DPR and thereafter to implement the Project subject to approval of
DPR by PEDA.
3. PEDA shall examine the viability of the Project on the basis of the DPR submitted by
the company and on being found viable shall approve the DPR.
4. The PEDA agrees to provide the company copies of all available documents, data,
information & reports relating to the project including copies of all investigations &
studies if any carried out since the inception of the project. The PEDA further agrees
to assist the company in obtaining statutory clearances if required from the Deptt. of
Environment & Forest, Punjab Irrigation Deptt. Punjab Pollution Control Board, PSEB
etc. and Central/State Govt. subsidies & other facilities & signing of PPAs with
Punjab State Electricity Board, Punjab Govt. as well as for deputing PEDA personnel
for site visits to the project area alongwith the company personnel until the
submission of DPR. For these services PEDA would charge a fee @ 0.1% of the
project cost as given in the DPR. These charges shall be payable through a bank
draft in favour of Punjab Energy Development Agency, Chandigarh within 15 days
from the approval of DPR but before signing of the Implementation Agreement by the
Company.:
5. In addition to the service charges the developer shall pay percentage energy share of
electricity to PEDA as offered by the company in his bid now indicated in Annexure-
III.
6. The Company shall carry out the requisite detailed investigations and techno-
economic studies of the project and shall submit a detailed project report to the
PEDA within a period of 120 days from the date of signing of this MoU. In the event
of the Company being unable to submit the DPR within the stipulated period of 120
days and if the DPR on examination, is not found acceptable to PEDA, for any
reason whatsoever, PEDA shall give an opportunity to the promoter (15 days notice)
to amend the DPR so as to rectify the objections raised by PEDA and if the Promoter
fails to do so then PEDA shall have the option to rescind the MoU.
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7. The company/promoter agrees that it shall not sublet/transfer its right accrued under
this MoU to any other party.
8. The Company/Promoter agrees to provide immediately but not later than 15 days of
the signing of this MoU a refundable interest free performance security of Rs. ______
(Rs. ___________) per site in the shape of Bank guarantee in favour of the PEDA
for carrying out the objects of this MoU. In case of breach of this MoU, or any part
thereof, this security shall be liable to be forfeited by PEDA. The performance
security shall be refunded on commissioning of the projects. Notwithstanding the
above, in the event of PEDA not accepting the prepared DPR of the
Company/Promoter or the Company/Promoter not finding the projects viable techno-
commercially or for any justifiable reason and the project(s) reverting back to PEDA,
the corresponding project (s) Bank guarantee shall be immediately returned to the
Company/Promoter duly discharged.
9. The Company/Promoter shall have no right to claim any compensation from PEDA or
any other developer for exploitation of biomass potential in other talukas of the state
as per site allotted to him, till the time of signing of this MOU and the
Company/Promoter shall be informed of any proposed biomass power projects in
adjoining talukas/tehsils of the projects sites before the signing of this MOU.
10. The PEDA and the company after having reached a conclusion that the Project is
viable and that the Company/Promoter is willing to set-up the project, shall enter into
an Implementation Agreement within 15 days thereafter for the implementation of
the Project. PEDA shall provide full assistance for obtaining all such permissions and
approvals, as may be required for implementing the Project, provided all necessary
information/data/details are duly furnished by the Company to the concerned Deptt.
PEDA shall also provide full assistance to the Company/Promoter for finalisation and
expeditious signing of PPA for sale of Power to PSEB
11. PSEB shall have the first option to purchase the whole or part of power generated
from these projects at the rates and terms and conditions given in and governed by
Punjab Govt. Notification No. 10/106/2006-STE(1)/5390 dated 24 th Nov’2006 unless
otherwise agreed to by the parties . However, PEDA shall assist in seeking from
PSEB that PSEB shall have to inform of its decision to buy the power or stop buying
the power, as the case may be, at least one year in advance to the
Company/Promoter to give it enough time to make necessary changes with other
affected parties. However, this shall be carried out only after ensuring that it does
not violate any of the alive agreements with third parties that the Company/ Promoter
may have entered into till that time.
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12. The company / promoters after being satisfied with the technical feasibility &
economic viability on all other accounts, of the project, may make suitable
arrangement for financing the cost of the project and, if considered necessary by the
company/promoter, incorporation of a Public limited Company (with major equity
participation by the promotors/company to whom these sites are allotted by PEDA)
with registered office located in Punjab for implementation and operation of the
Project. The company/promoter shall be permitted to set up the project(s) in the
name of the separate company as long as major equity participation by the
company / promoter is ensured.
13. The Company/Promoter agrees that they shall carry out the investigations as well as
the implementation, if found viable, of the Project. The Company shall allow access
to the authorized representative(s) of PEDA to all the locations of the Project.
14. The company/promoter shall ensure that while preparing detailed project report or
implementing the project, the project will not affect any public utility scheme such as
drinking water, irrigation scheme, approach path/road etc., except to the extent
required and approved by the concerned department/authority.
15. PEDA agrees to ensure the grant of necessary permission to the Company to
establish, operate and maintain the Project on BOO basis and sell power from the
Project for a initial period of twenty years from the date of commissioning.
16. This MoU is exclusive to the parties hereto and promoter/company shall not assign
its rights and benefits thereunder except with mutual consent .
17. This MoU shall remain in force for a period of six months, unless extended by mutual
consent of both the parties, from the date hereof, within first 12 (or 24) months, (inline
with clause 6 above), of which the Company/Promoter shall make best efforts to
obtain the approval of DPR and which approval shall not be unreasonably withheld
beyond 15 days. The company shall adhere to the implementation schedule bid as
stated in the detailed project report (DPR).
18. PEDA shall not entertain any other similar project to be set up in the command area
of this project provided full exploitable potential in a taluka has been harnessed in
terms of MW capacity,so as to avoid any adverse impact on the sourcing of biomass
fuel for the sanctioned capacity of this project.
19. Each party hereto agrees that it shall not divulge any trade, commercial or technical
secrets of confidential matters of one another to any third party, save and except for
the purpose of implementing the understanding reached in this MoU.
20. Neither party shall be considered to be in default under this MoU for any breach of
any of the terms thereof due to the imposition of restrictions of onerous regulations
by any government or statutory authority or agency or other cause beyond its
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IN WITNESS WHERE OF the parties hereto have set their hands unto this on the day,
months and year first above written in the presence of ;
___________________________ M/s.___________________________
___________________________ ______________________________
___________________________ ______________________________
Witness by : Witness by :
___________________________ ______________________________
___________________________ ______________________________
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IMPLEMENTATION AGREEMENT
BETWEEN
AND
WHEREAS
a) PEDA is the State Nodal Agency for the promotion and development of non-
conventional and renewable sources of energy in the State of Punjab
including small hydro projects up to 25MW capacity.
b) The company had been allotted the site for setting up of a biomass power
project at __________________________________(“Project”) through a
competitive bidding process.
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c) The company has carried out the necessary detailed survey and
investigations, prepared and submitted its Detail Project Report (DPR) for
implementation of the project having satisfied themselves about the technical
feasibility and commercial viability of the Project.
d) The DPR has been approved by PEDA and the company now agrees to
undertake the implementation of the Project in accordance with the conditions
set forth in this Agreement (“Agreement”).
1.1 Interpretation
1.1.1 The nomenclature of the headings, paragraphs are for the convenience of
reference only and shall be ignored in construing or interpreting this
Agreement.
1.1.2 References to persons and words denoting natural persons shall include
bodies corporate and partnerships, joint ventures and 'statutory and other
authorities and entities.
1.1.3 References to any enactment, ordinance or regulation or any provision thereof
shall include any amendment thereof or any replacement in whole or in part.
1.1.5 The words importing singulars shall include plurals and vice-versa as may be
necessary.
1.1.6 The annexure and schedules of this Agreement form an integral part of this
Agreement and will be in full force and effect as though they were set out in
the body of this Agreement.
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1.1.7 Any reference at any time to any agreement, deed, instrument, license or
document of any description shall be construed as reference to that
agreement deed, instrument, license or other document as amended, varied,
supplemented, modified or suspended at the time of such reference provided
that this clause shall not operate so as to increase the-liability or obligations of
any Party hereunder or pursuant hereto in any manner whatsoever.
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3.1 In case the performance security has not been provided by the company in
line with the MoU signed on _________, the Company shall provide a
refundable interest free performance security of Rs. ____ (Rs. ___________)
before signing of this agreement in the shape of bank guarantee in favour of
PEDA for carrying out the objects of this Agreement. The performance
security deposit shall, at the first instance, be valid for a period of 12 months
and shall be renewed from time to time so as to remain valid till the
Commencement of Commercial Operation of the Project. The performance
security shall be refunded to the Company on the Commencement of
Commercial Operation of the Project.
3.2 The Company shall pay to PEDA a sum of equivalent to the 1% of the project
cost as non refundable service charges Within 10 days of the approval of
DPR / Effective Date through a Bank Draft in favour of PEDA payable at
Chandigarh.
iii) The Company does not commence the construction at the site within 30 days
of the Financial Closure.
iv) The company does not complete and commission the plants within 395 days
of the financial closure for the reasons other than those solely attributable to
Govt. of Punjab/IREDA or beyond reason control of the company.
GOP/PEDA reserves the right to terminate the Agreement and forfeit the
performance security. The Company will hand over to GOP/PEDA, all the
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TERMS OF AGREEMENT
4.1 General
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viii) That if the company drop their plan for running the plant due to
any reasons whatsoever, then the company shall be bound to
pay the entire fee / charges to PEDA before requesting for the
termination of this agreement.
ix) The company shall take insurance cover from reputed insurance
company as is required by law and prudent utility practices and
that the PEDA shall have nothing to do with safety of persons
and property of the company and shall not be in any way
responsible for any damage that may occur to the power project
or its employees / management.
4.2 Effectiveness
The company shall enter into a separate PPA with PSEB after getting
the necessary approval and fixation of tariff from PSERC regarding the
sale of power within 60 days from the date of approval of PSERC. The
PSEB shall purchase the power offered from the project at the terms
and conditions agreed in PPA to be signed by the company with PSEB.
5. OBLIGATIONS OF PEDA/GOP
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A valid and enforceable PPA shall at all times during the agreement period
cover the sale of energy by the company. Further issues relating to establishment
operation & maintenance of interconnecting facilities for the project and evacuation
of power from the project shall be suitably detailed in the PPA. The PPA shall be an
integral part of the implementation agreement and the parties shall abide by the
same.
iii) The company shall implement the project as per time schedule
annexed with this agreement at Annexure-A. In case of undue
delays PEDA at its discretion may forfeit the Performance
Security of the company. However PEDA shall serve a written
notice for forfeiture. PEDA may also choose to terminate this
agreement for unacceptable delays.
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The Company shall further ensure that the Project during the
Agreement Period meets all conditions prescribed in accordance
with the Indian Standard(s)/code(s) then in effect and otherwise
meets the Provisions of the Indian Electricity Acts / Rules for
synchronisation with the Board's grid system.
The Company shall operate and, maintain the Project in
accordance with
i) Prudent Utility Practices
ii) All applicable laws and directives of GOP/GOI
iii) The manuals, instructions and manufacturers' guidelines
supplied by construction contractors'/ manufacturers and
suppliers of equipment and the grid technical parameters;
iv) Operating Procedures
6.3 Payments
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ii) Shall pay to PEDA a sum equivalent to 0.1% of the project cost of the
Installed Capacity as service charges in terms of the provision of
clause 3.2 above.
iii) Shall pay percentage electricity share to PEDA from electricity sold to
PSEB as per annexed details in annexure-B, which shall be monetary
equivalent at the rate of sale to PSEB on a monthly basis during the
entire Agreement Period. PEDA shall have the right to recover the
Revenue Share directly from PSEB or from the Company. The
Revenue Share payments would be made by PSEB/ Company as the
case may be within seven (7) days from the due date of realisation of
the energy charge by the Company from PSEB. Any delay in making
the payments would carry interest at the rate of SBI prime lending rate
plus 2% per annum on the delayed amount for the period of delay. In
case of third party sale PEDA will install its own meter & metering
equipment at the powerhouse for metering of energy sale to third part.
iv) Shall pay to obtain the statutory approvals, registrations, license fees,
taxes and duties applicable for setting up the project.
v) Shall bear the stamp duty for the execution of this agreement.
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The Company shall ensure that while implementing the Project, the Project
will not affect any public utility scheme such as drinking water, irrigation
schemes, approach roads / paths etc. except to the extent required and
approved by the concerned department/authority. The cost of the remedial
measures shall be a part of the Project cost. The Company shall not interfere
with any of the existing facilities till an alternate facility as identified is created.
The company shall ensure that the water requirement for construction of the
project including potable water shall be arranged and harnessed by them from
the canal source with the permission of PID and / or local sources of water
supply.
The company shall follow and obtain all necessary clearance / approval under
all the relevant laws, including without limitation, all labour laws, and shall also
provide for safety provisions as per the Indian Electricity Act 2003, Indian
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Electricity Rules,, Factories Act, 1948, Mines Act, 1952 and such other
statutory provisions relating to the project.
The company shall ensure the project is maintained in accordance with the
manufacturers instructions, procedures, relevant safety code, Indian electricity
Act/Rules and prudent utilities practices and Indian/International Standards
during the Agreement period.
The Company shall take such Insurance cover from reputed Insurance
Companies, as is required by Law and Prudent Utility Practices. The
Company shall indemnify and hold the GOP and its employees 'harmless
from, and against any, and all claims, demands, proceedings, or causes of the
action in respect of.
i) Any death or injury to the personnel of the Company, contractors and third
Parties; and/or
ii) Any loss or damage to the project or the property of the Company, its
personnel or third party;
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The Project was allocated under a competitive bidding process and the same
is assigned to the Company with the approval of PEDA. The aggregate equity
contribution of the Company/ promoters of the allottee company/Consortium
to which the project was initially allotted shall not be less than 51% (fifty one
percent) during the construction period and until 3 (three) years following the
commencement of commercial operations.
The Company shall not assign, sublet or transfer its rights and 'benefits
hereunder except as provided in this Agreement without the prior approval of
GOP/PEDA whose approval will not be unreasonably with held.
7. FORCE MAJEURE
For the purpose of 7.1 non-political force majeure events shall mean one or
more of the following acts or events:
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For the purpose of 5.1 Political Events shall mean one or more of the
following acts or events by or an account of PEDA, GOP, GOI or any
other Government Agency or Statutory Authority.
i) Change in law.
ii) Expropriation or compulsory confiscation, by any Government
Agency of any Project Assets or rights of the company.
iii) The unlawful or un-authorised or without jurisdiction revocation
of, or refusal to renew or grant without valid clause any consent
or approval required by the company to perform its obligations
under the Agreement (Other than a consent the obtaining of
which is a condition precedent) provided that such delay,
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i) The parties shall cooperate and negotiate in good faith and will
develop implementation plan of remedial and reasonable
alternative measures to remove / remedy Force Majeure event
to enable the performance of the affected party provided
however, that no party shall be required under this provision to
settle strike or other labour dispute.
ii) Upon the occurrence and during the subsistence of any Force
Majeure event, none of the parties shall be relieved of their
liabilities/obligations including liability for payment as per the
Agreement.
iii) In case a Non-political force majeure event necessitates
extension of time for the Project implementation both the parties
will duly accept it.
iv) The extra cost for completion of Project due to a non-political
force majeure event including interalia, additional or extra work
required to be done, interest due during the extended period of
project completion and escalation shall be duly considered in the
project completion cost for all purposes of the agreement.
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8 DEFAULTS
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9. TERMINATION
9.1 (a) This agreement may be terminated on serving a thirty days notice
(Termination notice) by
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9.1(b) On the expiry of the termination notice, the party which served the
termination notice, shall be entitled to terminate this agreement under
intimation to the other party, unless the event leading to the termination
notice has been rectified or complied with to the satisfaction of the
party which issued the termination notice.
i) That GOP has the power to execute, deliver and perform fully all
its obligations and liabilities under this agreement and
ii) That the execution, delivery and performance by the GOP of this
agreement will not violate any court, provision of any existing
law or notification or regulation or order or decree of any court,
governmental authority, or agency or any contract undertaking
or agreement to which GOP is a party/binding on GOP and will
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11 INDEMNITY
11.1 The company shall bear the responsibility, for any third party claim
action of any proceedings of whatsoever nature (including without
limitation those initiated by any statutory authority, court or tribunal or
government agency against the GOP its officers and employees in
respect of any loss of or damages to the property death or injury to the
person together with all expenses relating thereto (including without
limitation all legal fees) arising out of or in relation to the design,
constructions, ownership operation and maintenance of the project etc.
or omission of the company, contractors or their sub contractors or the
lenders to comply with the applicable laws, without recourse to the
GOP and the company shall hold GOP, its officers and employees fully
indemnified in respect thereof.
11.3 GOP shall have the right, but not the obligation to defend and litigate
(and to retain the legal advisors of its choice in connection therewith)
any claim action or proceedings alleged or asserted against GOP its
officers or its employees in respect of which it is indemnified under this
clause, and the reasonable costs and expenses thereof shall be
subject to such indemnify provided that the company shall be entitled
at its option, and it permitted by law, to assume and control the conduct
and defence of such claim, action or proceedings at its expenses and
through its own legal advisors if it.
a) Gives notice of its intention to do so to GOP/
b) Acknowledges to GOP in writing its obligation to indemnify GOP
of its officers or employees or all of them both in their official
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12 RESOLUTION OF DISPUTES
12.1 The parties shall attempt to resolve any dispute, arising out of or in
connection with this agreement (hereinafter referred as the dispute) by
mutual discussion. In the event that any dispute cannot be resolved
between the parties with in a period of 30 days of the commencement
of the discussions, then such dispute shall be settled under the
Arbitration & Reconciliation Act 1996. The arbitration shall be
conducted at Chandigarh, India in English language. Any award given
by the arbitrators shall be final and binding on the parties and shall be
in lieu of any other remedy within the meaning of arbitration and
reconciliation Act’1996.
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12.3 Neither party shall resort to any proceeding in the court except for the
enforcement of award in respect of a dispute having first exhausted the
remedy under this clause.
12.4 During the subsistence of the arbitration proceedings both parties shall
continue to perform their respective obligations under this agreement
provided that the right of either party to terminate this agreement in
accordance with the provisions thereof, shall not be effected by the
subsistence of arbitration proceedings.
13 Miscellaneous
13.3 No Partnership
Nothing in this Agreement shall constitute or be deemed to constitute a
partnership between any of the Parties hereto and none of them shall
have any authority to bind the other in any way.
13.4 Waiver
No failure to exercise and no delay in exercising on the part of the party
of any right, power or privilege hereunder shall operate as a waiver
thereof nor shall any single or partial exercise of any right, power or
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13.5 Severability
Notwithstanding that any provision of this agreement may prove to be
illegal or unforceable the remaining provisions of this agreement shall
continue in full force and effect. Parties shall in good faith negotiate
and agree upon a replacement provisions which shall be as close as
permissible in law to such a provision.
13.6 Survival
The termination or expiry of this agreement shall not affect the accrued
rights, obligations and liabilities of the either party under this agreement
nor shall it affect any continuing obligation, which this agreement
provides, whether expressly or by necessary implication.
13.7 Confidentiality
The parties shall on a confidential basis at all times forthwith provide to
each other information as is available and is necessary or useful to
enable each party to perform its obligation under this agreement. Each
of the parties may however, use or disclose confidential information to
a third party to the extent necessary for the performance of and control
of the financing, construction and operation of the project, subject to
prior consent from the other party, provided that the either party may
disclose any such confidential information without the consent of the
other party to a Government Agency.
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13.9 Assignment
The company shall not sublet or transfer its rights accrued under this
agreement to any third party except for the purpose of arranging or re-
arranging finance for the project.
13.10 Communication
Any communication to be made by one party to the other party under
this agreement shall be validly made when delivered in writing by hand
or through fax or through regd. Mail.
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If to GOP
Chief Executive
Punjab Energy Development Agency
Plot No. 1&2, Sector 33-D
Chandigarh – 160 034
Any party may be notice, change the address and communication are to be
delivered or mailed.
13.11 Headings
That the heading or titles of the several sections hereof are for
convenient of reference and shall not effect the construction or
interpretation of this agreement.
13.12 Amendment
This agreement shall be binding on and shall ensure for the benefits of
the successors of the parties.
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In witness whereof, the parties hereto have executed and delivered this agreement
in the presence of witnesses at Chandigarh, India on the date, first month and year
written above,
Director Director
Punjab Energy Development Agency M/s.
2. 2.
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PART I PUNJAB GOVT. GAZ., DECEMBER 8, 2006 ( AGHN. 17, 1928 SAKA)
NOTIFICATION
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II. Targets:
The State Government lays down hereby the following targets in the NRSE
sector:
Given the current consumption per unit of economic and social activity, to
motivate all sectors of the economy to ensure conservation of energy to
the extent of 20% by the year 2020.
In order to fulfill the above specific targets, the following measures are
proposed for encouraging:
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In case the electrical power generated by the projects set up under the New
and Renewable sources of Energy (NRSE) Policy in the State, is less than
10% of the conventional power, State Electricity Utility (PSEB)/ licensees can
purchase power from NRSE projects set up outside the State in the Northern
Region at the same tariff applicable to NRSE projects within the State.
Given the geographical location of the State of Punjab, and its access to
various sources of energy, the State would promote investment through
private/public sector participation in the following areas:
2. Co-generation:
State of Punjab has an established industrial base, which is expanding.
The Sugar, paper, fertilizer chemical, textile and other industries are
having an estimated potential of 220 MW. Adoption of co-generation by
these industrial units/undertakings would not only augment the state grid
capacity by about 220 MW but would also create conducive conditions
for improving their financial health and resources. Cogeneration projects
of 67 Bar pressure and above with the qualifying criteria i.e. for the co-
generation facility to qualify under topping cycle mode, the sum of useful
power output and one half the useful thermal output be greater than 45%
of the facility’s energy consumption, shall only be eligible for
consideration under this policy. This potential would be exploited by the
year 2012.
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6. Wind Power :
There is possibility of sufficient wind power potential being available at
higher heights in the State, which can be harnessed with the
improvement in low speed wind power technology. There is immediate
necessity for wind mapping in the State to assess and exploit the
available potential. The state will support such programs. Self identified
projects in this sector shall be promoted by allowing private developers
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to set up wind power projects on first come first served basis on the
basis of wind data assessment carried out by them .
7. Energy Conservation:
Conservation of energy in domestic, commercial, agriculture,
transportation and industrial sectors may lead to major savings in terms
of reduced energy / power consumption thereby leading to bridging the
energy demand supply gap in the state. The State Government is
committed to introduce effective energy conservation measures in all
sectors of economy. Energy Conservation Measures shall be
implemented and enforced in the state in accordance with the
provisions contained in the Energy Conservation Act, 2001 by PEDA,
which is the Designated Agency, notified under the Act by the State
Govt. in consultation with Bureau of Energy Efficiency, Ministry of
Power, Government of India.
V. INCENTIVES :
1. If Government land is available, the required land for setting up (NRSE
projects) will be provided on nominal lease rent of rupees one per square
meter for a period of 33 years subject to further renewal on mutually
agreed terms and conditions. Wherever the land belongs to local bodies/
Gram Panchayat, the State would encourage them to provide the land
for NRSE project on similar terms and conditions. Agricultural land shall
be allowed to be used for setting up of Renewable Energy Power
Projects in the state and no conversion charges for the same shall be
charged by the Town & Country Planning Deptt.
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This Corpus will be operated and maintained by the state nodal agency
i.e. Punjab Energy Development Agency.
6. The Private Developer at its own cost shall provide the evacuation
system including transmission lines for purchase of energy from the
generation site.
7. For use of river/ canal water, cess @ one paisa per unit of electricity
generated will be charged to all hydel projects (upto 25 MW installed
capacity) developed by the private developer. The private developer
shall deposit the amount on account of this cess on monthly basis to
Punjab Irrigation Department.
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The various fiscal and financial incentives available for setting up NRSE power
projects are detailed in Appendix-II.
VI. CLEARANCE FOR NRSE PROJECTS:
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Punjab Energy Development Agency (PEDA) will be the nodal agency for the
implementation of the NRSE Policy. PEDA will be responsible for laying down
the procedure for inviting of proposals from Independent Power Producers
(IPP’s), DPR, evaluation of project proposals, project approvals , project
implementation , operation & monitoring.
X. APPLICABILITY:
The Policy and Incentives would be effective from the date of notification of
this policy in the official gazette of Punjab Government for a period of five
years.. However, this policy shall remain in operation till the Government
notifies the new policy. For giving effect to this policy, necessary
amendments in various enactments, wherever necessary, shall be
expeditiously undertaken by the concerned departments.
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APPENDIX-1
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APPENDIX-II
FISCAL AND FINANCIAL INCENTIVES
CODE UNDER NRSE POLICY – 2006
With the objective to promote and develop NRSE programme/ projects, the
State Government will provide the following financial and fiscal incentives for energy
recovery and power generation projects based on NRSE, to be set up in the State to
the eligible power producers.
1. Operative period :
The scheme for promotional fiscal and financial incentives will come
into operation with immediate effect from the date of publication of this
notification in the official gazette and will remain in force till five years.
However, this policy shall remain in operation till the Government
amends or notifies the new policy
2. Eligible Producers :
3. Grid Interfacing :
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ii) The private developer shall be required to lay its own transmission
lines from the switchyard of its generation facility to the
PSEB/LICENSEES grid sub-station at its own cost in addition to all
equipment required for evacuation of power in its own generating
facility switchyard. All Associated equipment(s) at the
PSEB/LICENSEES grid substation for accepting energy from the
project including up gradation required if any shall be provided by the
PSEB/LICENSEES.
iii) Producer will install two separate meters, one for the export of power to
the grid and another for import from the grid, on the HT side. The
meters and metering boxes will be sealed by the PSEB/LICENSEES.
vi) The generating unit and also the user unit will be required to enter into
separate agreement with PSEB/any other licensee for the sale of
power after issue of the tariff order by PSERC.
vii) NRSE Project generators, suppliers and distributors shall ensure that
their installation confirms to the State Grid Code notified by PSERC.
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ii) Sale of Power : The rate of sale of power to the PSEB/ Licensees
from NRSE projects set up in the State as well as within the “Northern
Regional Power System” * for which MOU’s shall be signed under this
policy, will be as under:-
a) Mini/Micro Hydel Projects - Rs. 3.49 per unit (Base Year 2006-
07) with five annual escalations @ 3% upto 2011-2012.
c) Biomass Power Projects - Rs. 3.49 per unit (Base Year 2006-
07) with five annual escalations @ 5% upto 2011-2012.
e) Power generation from Solar Energy - Rs. 7.00 per unit (Base Year
2006-07) with five annual escalations @ 5% upto 2011-2012.
f) Wind Power Projects- Rs. 3.49 per unit (Base Year 2006-07) with
five annual escalations @ 5% upto 2011-2012.
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signed by PEDA but Power Purchase Agreements are yet to be signed by PSEB
under the New and Renewable Sources of Energy (NRSE) Policy-2001, tariff shall
be applicable as enshrined under the New and Renewable Sources of Energy
(NRSE) Policy-2006. The rate shall be uniform throughout the day for the entire
years. The PSEB/LICENSEES will not be liable to pay any additional amount on any
account. The producer will have a option to sell the electricity generated by him to a
third party (a consumer) within the State of Punjab (as defined under clause 4(i)
above) on such terms and conditions (including tariff) as may be mutually agreed
upon by them.
iii) All transactions between the PSEB/ Licensees and the producer
involving wheeling or sale of power will be settled on monthly basis.
The PSEB/LICENSEES would pay interest on payments delayed
beyond a month @ State Bank of India short term Prime Lending Rate
plus 2%. for delayed amount for actual period of delay.
iv) Banking: The banking facility for the power generated shall be
allowed for a period of one year by the PSEB/ Licensees.
vi) PSEB/ Licensees will accept the injection of energy in full during
sustained high frequency hours to ensure full utilization of non-
conventional energy resources.
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5. Other incentives:
(i) Government land if available will be leased out to the developer initially
for a period of 33 years (three years shall be considered as
construction period), on a notional lease rental of Rs. 1/- per Sq. Metre
per annum subject to further renewal on mutually agreed terms and
conditions among the parties.
(iii) Wherever the required land belonging to local bodies/ Gram Panchayat
is available, the State would encourage the local bodies/ Gram
Panchayat to provide the land for NRSE projects on the terms and
conditions specified in para (i) above.
(iv) The power producers setting up hydel projects will pay cess @ one
paisa per unit of electricity generated for use of river/ canal water.
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(v) For canal based hydel projects, pondage of water upto Full Supply
Level in the upstream of canal shall be allowed for optimal utilization of
water resources.
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ix. The developers for obtaining the approval of project proposal will submit
their applications to the Chief Executive, PEDA. Their project proposal will
be forwarded to the Government for approval.
xi. After approval of the project proposal, and after issuing of all statutory
clearances, the Producer shall enter into an Implementation Agreement
with PEDA within a period of one month from the date of approval of the
project.
xii. Private developers shall file petition in the PSERC for tariff approval within
15 days after signing of the implementation agreement with PEDA and
PSEB/ LICENSEES shall sign the Power Purchase Agreement within 45
days from the date of issue of tariff order by the PSERC after the
submission of requisite documents by the developers.
xiii. If the applicant does not take effective steps to implement the project
within six months from the date of approval of the project proposal, the
Agreement could be terminated and their project proposal will be cancelled
(i.e. at least 10% of the total project cost should be incurred).
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After the allotment of the project site(s), the allotee shall fulfill the
following pre-requisites:-
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Romila Dubey
Principal Secretary to Government of Punjab,
Deptt. of Science, Technology, Environment
and Non-Conventional Energy.
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