Common use of Annuity Payments during Operation Period Clause in Contracts

Annuity Payments during Operation Period. 23.6.1 An amount equal to the product of the Project Cost and the Price Index Multiple applicable as on COD shall be deemed to be the cost of the Project as on COD (the “Completion Cost”).The Parties agree that 50%(fifty per cent) of the Completion Cost shall be deemed to have been paid during the Construction Period and the balance remaining shall be due and payable during the Operation Period in accordance with the provisions of Clause 23.6.2. 23.6.2 The Completion Cost remaining to be paid in pursuance of the provisions of Clause 23.6.1 shall be due and payable in biannual instalments over a period of 10 (ten) years commencing from COD, along with interest thereon (the “Annuity Payments”). The 1st (first) instalment of Annuity Payments shall be due and payable within 15 (fifteen) days of the 180th (one hundred and eightieth) day of COD and the remaining instalments shall be due and payable within 15 (fifteen) days of completion of each of the successive six months. 23.6.3 Each of the Annuity Payments due and payable during (a) the 1st (first), 2nd (second) and 3rd (third) years following the COD shall be equal to 1.5% (one point five per cent) of the Completion Cost;(b) the 4th (fourth),5th (fifth),6th (sixth) and 7th (seventh) years following the COD shall be equal to 2.5% (two point five per cent) of the Completion Cost; and (c) the 8th (eighth), 9th (ninth) and 10th (tenth) years following the COD shall be equal to 3.5% (three point five per cent) of the Completion Cost .Each of the biannual instalments payable hereunder shall be paid along with interest as specified in Clause 23.6.4. 23.6.4 Interest shall be due and payable on the reducing balance of Completion Cost at an interest rate equal to the applicable Bank Rate plus 2% (two per cent) .Such interest shall be due and payable biannually along with each instalment specified in Clause