Common use of Penalty for Delay in Commissioning Clause in Contracts

Penalty for Delay in Commissioning. 4.4.1 If the SPG is unable to commission the Project by the Scheduled Commissioning Date, the SPG shall pay to MSEDCL, damages for the delay in such commissioning and making the Contracted Capacity available for dispatch by the Scheduled Commissioning Date as per the following: Delay beyond the Scheduled Commissioning Date upto (& including) the date as on 9 months from the Date of signing of PPA. The total Performance Bank Guarantee amount shall be encashed on per day basis and proportionate to the balance capacity not commissioned. 4.4.2 The maximum time period allowed for commissioning of the full Project Capacity with encashment of Performance Bank Guarantee shall be limited to 11 Months from the Date of signing of PPA. In case, the Commissioning of the Project is delayed beyond 11 Months from the Date of Signing of PPA, it shall be considered as an SPG Event of Default and provisions of Article 13 shall apply and the Contracted Capacity shall stand reduced / amended to the Project Capacity Commissioned within 11 Months of the Date of signing of PPA and the PPA for the balance Capacity will stand terminated and shall be reduced from the project capacity. 4.4.3 The SPG further acknowledge that the amount of the liquidated damages fixed is genuine and reasonable pre-estimate of the damages that may be suffered by MSEDCL.