Common use of Minimum Equity requirements Clause in Contracts

Minimum Equity requirements. a. The aggregate shareholding of the Consortium Members along with their Associates (in case of Consortium) or Associate/s (in case of Individual Bidder) in the subscribed and paid up equity share capital of the Concessionaire shall be not less than: i. 100% (one hundred percent) for a period until the Effective Date (i.e. the date of execution of the Concession Agreement). ii. 51% (fifty-one percent) until the 5th (fifth) anniversary i.e. lock in period of the Commercial Operation Date of the Project. b. In case of Consortium, the Lead Member of the Consortium, Technical and O&M member or any other member whose experience has been evaluated for the purposes of the RFP shall subscribe and maintain a minimum equity shareholding of 26% (twenty six percent) each in the stipulated subscribed and paid up equity share capital of the Concessionaire as specified under Article 8.2(b) at all time during the Lock in Period i.e. until the 5th(fifth) anniversary of the Commercial Operation Date of the Project. This holds for the single entity bidder also and hence no Bidder who has 100% (one hundred percent) equity in the Project can dilute it to a level below 100% (one hundred percent) at any time until the date of execution of the Agreement. Remaining stake can be diluted as per the provisions of Article 8.2(a)(i). c. At no stage during the Lock in Period shall any change in the shareholding pattern be made by the Consortium Members and/or by any of the Associates without obtaining prior approval from the Authority. On an application made for the purpose, Authority may permit the change of shareholding pattern, provided the Authority is satisfied that the proposed changes shall be in the interest of the implementation of the Project in future and would not be detrimental to any of the rights or interests of the Authority. However, no such change in the shareholding pattern shall be permitted by the Authority, which would make the Consortium Members or Associates or the Concessionaire non‐compliant with Articles 8.2(a) and 8.2(b) above. In case any such change in composition of Consortium has been agreed upon, the modified Consortium would be required to submit a revised Memorandum of Understanding to the Authority.

Minimum Equity requirements. a. The aggregate shareholding of the Consortium Members along with their Associates (in case of Consortium) or Associate/s (in case of Individual Bidder) in the subscribed and paid up equity share capital of the Concessionaire shall be not less than: i. 100% (one hundred percent) for a period until the Effective Date (i.e. the date of execution of the Concession Agreement). ii. 51% (fifty-one percent) until the 5th (fifth3rd(third) anniversary i.e. lock in period of the Commercial Operation Date of the Project. b. In case of Consortium, the Lead Member of the Consortium, Technical and O&M member or any other member whose experience has been evaluated for the purposes of the RFP shall subscribe and maintain a minimum equity shareholding of 26% (twenty six percent) each in the stipulated subscribed and paid up equity share capital of the Concessionaire as specified under Article 8.2(b) at all time during the Lock in Period i.e. until the 5th(fifth3rd (Third) anniversary of the Commercial Operation Date of the Project. This holds for the single entity bidder also and hence no Bidder who has 100% (one hundred percent) equity in the Project can dilute it to a level below 100% (one hundred percent) at any time until the date of execution of the Agreement. Remaining stake can be diluted as per the provisions of Article 8.2(a)(i). c. At no stage during the Lock in Period shall any change in the shareholding pattern be made by the Consortium Members and/or by any of the Associates without obtaining prior approval from the Authority. On an application made for the purpose, Authority may permit the change of shareholding pattern, provided the Authority is satisfied that the proposed changes shall be in the interest of the implementation of the Project in future and would not be detrimental to any of the rights or interests of the Authority. However, no such change in the shareholding pattern shall be permitted by the Authority, which would make the Consortium Members or Associates or the Concessionaire non‐compliant with Articles 8.2(a) and 8.2(b) above. In case any such change in composition of Consortium has been agreed upon, the modified Consortium would be required to submit a revised Memorandum of Understanding to the Authority.