Summary of agreement
A. The developer is in the business of setting up a solar photovoltaic (SPV) technology
based power plants.
B. The consultant is in the business of arranging EPC contractors with differed credit facility
for solar photovoltaic power generating plants developers.
C. The developer agreed to engage the consultant for identifying a suitable EPC
contractor who offers differed credit facility, for their upcoming solar PV power projects.
Summary of the project
Location
Latitude
Longitude
Solar radiation
End consumer
Plant capacity
Minimum target generation
Total time required for execution
KWh/Sq. Mt/Day
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12. Up on the breach of the NCND terms and submitting proof of the same the other
party shall take the legal route or through arbitration shall claim such an amount of
Rs 10,00,000 (Rupees Ten lakhs only) as a token reimbursement of invaluable
loss caused.
J. Validity of the agreement period: This agreement shall be in force for a time period of
2 years from the date of signing as far as the non-disclosure terms are concerned.
K. Jurisdiction: Hyderabad city of Telangana state shall be the jurisdiction for this
agreement.
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A. The following are the basic terms under which the EPC deferred credit provider is
arranged by the consultant.
B. This part forms the basis for the term sheet or preliminary agreement between
the developer and the EPC cum deferred credit provider at later date once
identified.
EPC contract
size
Type of plant
EPC implementation in
India by
Client Scope
Loan details
As applicable
$cost considered:
EPC cost estimate is based on quotes for Module and Inverter as of today.
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Flow of activities
1. Initiation of project by signing the Term Sheet with EPC contractor. Negotiation
and finalization of terms.
2. Formal agreement between client and EPC credit provider along with lump sum
token advance.
2.1. The advance shall be adjusted towards mobilization.
2.2. We shall give a security against the token advance taken valid till
obtaining the sanctions from the lender and supplier
3. After the agreement and payment of token advance work will begin for
3.1. Soil testing, water testing, cantor study, estimation of evacuation line,
preparation of DPR, and validation of the PPA.
3.2. Getting in principle loan sanction letter from the lender,
3.3. Suppliers credit sanction letter from suppliers.
4. After getting the in-principle loan sanction and suppliers credit sanction letter
4.1. The initial token advance will be adjusted against Mobilization.(nonrefundable if the project stopped at the instance of developer at this
stage),
4.2. The site shall be handed over to the EPC contractor after basic jungle
clearance and levelling.
4.3. The balance of the advance amount should be paid to the EPC contractor.
(here the advance means the 30% agreed investment by the developer)
4.4.
After receiving the final installment of the balance advance the work shall
be started on the site.
Note:
Final Supplier credit Sanction will be given only after the developer obtains all the
statutory, local and central government clearances including approval (NOC) for land
that can be used for commercial purpose and land conversion, permission from
DISCOM for evacuation to the nearest 33/13210KVA substation including where it is
required right of way for the evacuation and environmental clearance.
5. All the above process will take about 30 to 45 days depending on the clients
support.
6. Project implementation will begin and be executed as per the agreed terms.
7. The whole process will be completed within 6-7 months after the final credit
sanction, payment of balance of 30% advance, and site handover to the EPC
contractor whichever is the last.
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The EPC contractor will assist in the inspection process and, shall rectify any
comments made by the inspector subject to the terms and conditions in the EPC
agreement at EPC contractors cost.
EPC contractor shall not be held responsible for the comments made by the
inspector which are not covered in the EPC agreement and which are beyond
statutory requirement.
9. Differed credit repayment.
The repayment will be in 7 years (84 monthly installments) by way of
assignment of PPA monthly installments. Addition to this the plant shall be
provided as security to the differed credit provider, and differed credit
provider, himself or through authorized entity shall have the first lean on
the account in which the PPA bills are received.
Any additional terms are subject to discussion and negotiation.
The payment terms for the project:
Milestone
Repayment
Security
10. Owner scope of the project: The following activities are under the scope of the
project developer.
10.1. Obtaining all the relevant approval required for setting up of project.
10.2. All the statutory, local and central government clearances including
tax & duty exemptions and any other clearances.
10.3. Evacuation clearance from DISCOM/TRANSCO, obtaining right of way
and environmental clearance for evacuation line where it is required.
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Action to be initiated
To initiate the process as a token of acceptance of the terms and conditions and a Letter of
Intent shall be given from the developer side along with signing this consultancy agreement
and term sheet.
After obtaining the Letter of Intent from the developer the consultant through the identified
EPC differed credit provider shall begin the action for
a. Preparation of detailed financial calculations,
b. Submitting preliminary list of equipment.
c. Preliminary site study and generation estimation.
d. Preparation of detailed agreement.
Thanking You
For M/s ABCD DEVELOPER
Authorized Signatory
Mr. XXX
We have understood and accept to the above terms to initiate the process.
For M/s CONSULTANT
Authorized signatory.
Mr. YYY
1-Witness 1:___________________________
Name:
2-Witness 2:___________________________
Name: