Common use of QUANTITY, SOURCE AND END-USE Clause in Contracts

QUANTITY, SOURCE AND END-USE. 4.1 The quantity of Coal agreed to be supplied by the Seller and undertaken to be purchased by the Purchaser, shall be lakh tonnes per Year from the Seller’s mines in the coal field and/or from international sources (“Annual Contracted Quantities” or “ACQ”). For part of Year, the ACQ shall be prorated accordingly. 4.2 The ACQ shall be delivered in equal monthly quantities during the Year, which shall be calculated as ACQ/12 (“Scheduled Quantity” or “SQ”). In case of supply by Rail, the Parties agree that if the quantity to be lifted by the Purchaser in a month within the SQ is insufficient to form a rake, formation of rake would be allowed by clubbing with the quantity of the next month and so on within the quarter. If at the end of the Quarter, any residual quantity is left being fraction of rake it would be carried over to the next Quarter and so on till the end of 4th Quarter. If at the end of 4th quarter, residual quantity is insufficient to form a full rake, the same would be treated as lapsed. 4.3 Seller shall supply Coal from sources as mentioned in Schedule I. In case the Seller is not in a position to supply the Scheduled Quantity from such sources, the Seller shall have the option to supply the balance quantity from alternate source, including Imported Coal. Further, in case of alternate sources, Purchaser shall accept Coal directly from such alternate source through Indian railway system and / or by alternate modes of transport depending upon operational flexibility and at such Delivery Point as decided by the Seller. Additional cost due to supply through alternate source including the inland logistics cost of Imported Coal shall be borne by the Purchaser. 4.4 The total quantity of Coal supplied pursuant to this Agreement is meant for use at the [ name & location of the Plant(s)] as listed in Schedule-I. the Purchaser shall not sell/divert and/or transfer the Coal for any purpose whatsoever and the same shall be treated as material breach of Agreement. In the event that the Purchaser engages or plans to engage into any such resale or trade, the Seller shall terminate this Agreement forthwith without any liabilities or damages, whatsoever, payable to the Purchaser. 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.