Common use of Committed Capacity Clause in Contracts

Committed Capacity. If the Beneficiary Firm fails to achieve the Committed Capacity as specified in Schedule - M, the Government shall have the right to deduct from the Subsidy payable under Clause 11.1, 2 (two) times the Subsidy due and payable corresponding to the shortfall in the Committed Capacity. By way of illustration and for the avoidance of doubt, the deduction in the Subsidy shall be computed as follows: If the Committed Capacity is 10 GWh, and the Beneficiary Firm achieves production / sale of 8 GWh, the Government shall deduct Subsidy payable for 2 * (10 - 8) = 4 GWh. The Beneficiary Firm would, under such circumstance, be paid Subsidy for (10 - 4) = 6 GWh of capacity, notwithstanding commissioning of 8 GWh.

Committed Capacity. If the Beneficiary Firm fails to achieve the Committed Capacity as specified in Schedule - – M, the Government shall have the right to deduct from the Subsidy payable under Clause 11.1, 2 (two) times the Subsidy due and payable corresponding to the shortfall in the Committed Capacity. By way of illustration and for the avoidance of doubt, the deduction in the Subsidy shall be computed as follows: If the Committed Capacity is 10 (ten) GWh, and the Beneficiary Firm achieves production / sale commissioned capacity of 8 (eight) GWh, the Government shall deduct Subsidy payable for 2 * (10 - 8) = 4 (four) GWh. The Beneficiary Firm would, under such circumstance, be paid Subsidy for (10 - 4) = 6 (six) GWh of capacity, notwithstanding commissioning of 8 (eight) GWh.