Common use of Penalty for Delay in Commissioning Clause in Contracts

Penalty for Delay in Commissioning. The Project shall be commissioned by the SCOD. In case of failure to achieve this milestone, except due to reasons specified under Article 3.3 (i), PSPCL shall encash the Performance Guarantee (PG) in the following manner. a) Delay upto six (6) months from SCOD: PSPCL will encash total Performance Guarantee on per day basis and proportionate to the balance Capacity not commissioned. b) In case the commissioning of the project is delayed beyond Six (6) months from SCOD, the SPD‟s Event of Default as per Article 10.2.1 shall be considered to have occurred and the contracted capacity shall stand reduced to the project capacity commissioned up to SCOD plus 6 (six) months. The PPA for balance capacity not commissioned shall be terminated. The SPD acknowledges that the amount of Liquidated Damages fixed is genuine and reasonable pre-estimate of the damages that may be suffered by PSPCL, as specified under this Agreement.

Penalty for Delay in Commissioning. The Project shall be commissioned by the SCOD. In case of failure to achieve this milestone, except due to reasons specified under Article 3.3 (i), PSPCL shall encash the Performance Guarantee (PG) in the following manner.following a) Delay upto six (6) months from SCOD: PSPCL will encash total Performance Guarantee on per day basis and proportionate to the balance Capacity not commissioned. b) In case the commissioning of the project is delayed beyond Six (6) months from SCOD, the SPD‟s Event of Default as per Article 10.2.1 shall be considered to have occurred and the contracted capacity shall stand reduced to the project capacity commissioned up to SCOD plus 6 (six) months. The PPA for balance capacity not commissioned shall be terminated. The SPD acknowledges that the amount of Liquidated Damages fixed is genuine and reasonable pre-estimate of the damages that may be suffered by PSPCL, as specified under this Agreement.