Common use of Compensation for short delivery/lifting Clause in Contracts

Compensation for short delivery/lifting. 3.6.1 If for a Year, the Level of Delivery by the Seller, or the Level of Lifting by the Purchaser falls below ACQ with respect to that Year, the defaulting Party shall be liable to pay compensation to the other Party for such shortfall in Level of Delivery or Level of Lifting, as the case may be (“Failed Quantity”) in terms of the following: 2012-13,2013- 14 & 2014-15 2015-16 2016-17 onwards Imported Below 100% but up to 80% NIL NIL NIL + of ACQ Domestic Applicable Below 80% but up to 75% of 0 - 1.5 for Imported Coal Only ACQ 0 - 1.5 0 - 1.5 Below 75% but up to 70% of ACQ - Below 70% but up to 65% of - ACQ 2012-13,2013- 14 & 2014-15 2015-16 2016-17 onwards Below 60% but up to 55% of ACQ 5 - 10 10 - 20 20 - 40 Below 55% but up to 50% of ACQ 10 - 20 20 - 40 Below 50% of ACQ 20 - 40 * Note: For the phasing period the annual coal requirements shall be based on the quantities mentioned by the Purchaser for the initial years under Schedule I of this agreement 3.6.2 The penalty payable shall be computed in the same manner as done slab-wise for computation of income-tax. However, unlike income tax, the percentage of compensation shall grow on linear basis within each slab Note: The Purchaser has to give unconditional acceptance of imported coal and pricing mechanism thereof as would be decided by CIL, by signing the Schedule VII of this agreement. Unless such acceptance is accorded, the penal provision for supply below 80% and up to 65% of ACQ for the years 2012-13, 2013-14 and 2014-15 and below 80% and up to 70% of ACQ for the year 2015-16 shall not be applicable. The penal provision for supply below 80% shall be applicable from the year 2016-17 and onwards. The terms of import and the pricing mechanism shall be as per the provisions of the side agreement. 3.6.3 Agreements made earlier under the “Coal Distribution System” as defined at 1.1(j) shall take precedence over the commitments made under this agreement.

Compensation for short delivery/lifting. 3.6.1 4.6.1 If for a Year, the Level of Delivery by the Seller, or the Level of Lifting by the Purchaser falls below ACQ with respect to that Year, the defaulting Party shall be liable to pay compensation to the other Party for such shortfall in Level of Delivery or Level of Lifting, as the case may be (“Failed Quantity”) in terms of the following: 2012-13,2013- 14 & 2014-15 2015-16 2016-17 onwards Imported Below 100% but up to 80% NIL NIL NIL + 80% of ACQ Domestic Applicable Below 80% but up to 75% of 0 - 1.5 for Imported Coal Only 75% of ACQ 0 - 1.5 0 - 1.5 Below 75% but up to 70% of ACQ - Below 70% but up to 65% - of - ACQ 2012-13,2013- 14 & 2014-15 2015-16 2016-17 onwards Below 60% but up to 55% of ACQ 5 - 10 10 - 20 20 - 40 Below 55% but up to 50% of ACQ 10 - 20 20 - 40 Below 50% of ACQ 20 - 40 * Note: For the phasing period the annual coal requirements shall be based on the quantities mentioned by the Purchaser for the initial years under Schedule I of this agreement40 3.6.2 4.6.2 The penalty payable shall be computed in the same manner as done slab-wise for computation of income-tax. However, unlike income tax, the percentage of compensation shall grow on linear basis within each slab * Note: For the phasing period the annual coal requirements shall be based on the quantities mentioned by the Purchaser for the initial years under Schedule I of this agreement Note: The Purchaser has to give unconditional acceptance of imported coal and pricing mechanism thereof as would be decided by CIL, by signing the Schedule VII of this agreement. Unless such acceptance is accorded, the penal provision for supply below 80% and up to 65% of ACQ for the years 2012-13, 2013-14 and 2014-15 and below 80% and up to 70% of ACQ for the year 2015-16 shall not be applicable. . The penal provision for supply below 80% shall be applicable from the year 2016-17 and onwards. The terms of import and the pricing mechanism shall be as per the provisions of the side agreementSide Agreement. 3.6.3 Agreements made earlier under the “Coal Distribution System” as defined at 1.1(j) shall take precedence over the commitments made under this agreement.