Common use of Penalty for Delay in Commissioning Clause in Contracts

Penalty for Delay in Commissioning. The Project shall be commissioned by the Scheduled Commercial Operation Date, failing which the Power Producer shall be liable to penalty as stipulated herein subject to clause 3.3 of this agreement. The maximum deadline allowed for commissioning of the full Project Capacity with applicable penalty / liquidated damages, shall be limited to the date as on 180 days from the SCOD or the extended SCOD (if applicable). Either Party can terminate this Agreement by giving a thirty (30) days’ notice in writing, if the Commercial Operation Date does not occur until six (6) months from the Scheduled Commercial Operation Date, except for occurrence of a Force Majeure Event or the Change in law; unless the Parties have agreed in writing to extend the Scheduled Commercial Operation Date beyond such six (six) month period without any further liability under this Agreement. The Power Producer acknowledges that the amount towards penalty for delay in commissioning (Liquidated Damages as mentioned at Article 3.3) is a genuine and reasonable pre-estimate of the damages that may be suffered by JIL as specified under this Agreement.