Common use of End-use of Coal Clause in Contracts

End-use of Coal. 4.2.1 The total quantity of Coal supplied pursuant to this Agreement is strictly meant for use and consumption by the [[•] name and location of the Specified End Use Plant(s)] as listed in Schedule I, for the purpose of generation of power in furtherance to and in accordance with the Amended PPA(s) and no transfer, swapping and/or other form of rationalisation in any manner whatsoever of any quantity of the Coal supplied pursuant to this Agreement shall be permitted other than as specifically permitted under the Scheme Document and this Clause 4.2. 4.2.2 The Purchaser shall not swap, rationalize, sell, divert and/or transfer the Coal for any purpose whatsoever and the same shall be treated as a material breach of this Agreement, for which the Purchaser shall be fully responsible and such act shall warrant suspension of Coal supplies by the Seller in terms of Clause 15.1.2. Rationalization of the Coal Linkage awarded to the Purchaser shall be allowed subject to and in accordance with the linkage rationalization policy and Policy. For the purpose of such linkage rationalization, higher of the discounts offered by the parties (i.e. higher of the two, discount offered on the existing source by the Purchaser and the highest discount on the source where the linkage holder wants to transfer the linkage) who intend to enter into linkage rationalization arrangement, shall be considered. Any savings accruing on account of linkage rationalization including saving accruing on account of change of discount should be passed on to the end consumers as per the provisions of linkage rationalization policy and Policy and the Amendment thereto.

Appears in 2 contracts

Sources: Fuel Supply Agreement, Fuel Supply Agreement

End-use of Coal. 4.2.1 The total quantity of Coal supplied pursuant to this Agreement is strictly meant for use and consumption by the [[•] name and location of the Specified End Use Plant(s)] as listed in Schedule I, for the purpose of generation of power in furtherance to and in accordance with the Amended PPA(s) and no transfer, swapping and/or other form of rationalisation in any manner whatsoever of any quantity of the Coal supplied pursuant to this Agreement shall be permitted other than as specifically permitted under the Scheme Document and this Clause 4.2. 4.2.2 The Purchaser shall not swap, rationalize, sell, divert and/or transfer the Coal for any purpose whatsoever and the same shall be treated as a material breach of this Agreement, for which the Purchaser shall be fully responsible and such act shall warrant suspension of Coal supplies by the Seller in terms of Clause 15.1.2. Rationalization of the Coal Linkage awarded to the Purchaser shall be allowed subject to and in accordance with the linkage rationalization policy and Policy. For the purpose of such linkage rationalization, higher of the discounts offered by the parties (i.e. parties(i.e. higher of the two, discount offered on the existing source by the Purchaser and the highest discount on the source where the linkage holder wants to transfer the linkage) who intend to enter into linkage rationalization arrangement, shall be considered. Any savings accruing on account of linkage rationalization including saving accruing on account of change of discount should be passed on to the end consumers as per the provisions of linkage rationalization policy and Policy and the Amendment thereto.

Appears in 1 contract

Sources: Fuel Supply Agreement