Common use of End-use of Coal Clause in Contracts

End-use of Coal. The total quantity of Coal supplied pursuant to this Agreement is meant for use at various thermal power stations of NTPC as listed in Schedule I. The Purchaser shall not sell/divert and/or transfer the Coal to any third party for any purpose whatsoever and such act on the part of the purchaser shall be treated as material breach of Agreement. However, the purchaser may transfer the coal meant for its one Power Plant to another Power Plant fully owned by the purchaser provided that such supply of coal shall for all commercial purposes under this Agreement remain unchanged and on account of the original Power Plant. It is expressly clarified that the Seller shall reserve the right to verify including the right to inspect/ call for any document from the Purchaser and physically verify the end-use of Coal and satisfy itself of its authenticity. The Purchaser shall have the obligation to comply with the Seller’s directions/ extend full co-operation in carrying out such verification/ inspection.