COMPENSATION FOR SHORT LIFTING OF COAL Sample Clauses

COMPENSATION FOR SHORT LIFTING OF COAL. In the event of failure to take Annual Contract Quantity of coal on the part of the Purchaser / Seller in any year, the defaulting party shall be liable to pay compensation to non-defaulting party for the failed off-take quantity as per the formula given below in terms of the following: Delivery of Coal in a Financial Year ( % of ACQ ) Rate of compensation applicable for the failed off-take quantity in terms of average base price (Rs. Per tonne) Less than 100% but up to 60% of ACQ NIL Below 60% of ACQ 10% The average base price (ABP) per tonne shall be the weighted average base price of coal supplied during the year. Compensation for short lifting shall be payable by the Purchaser to the Seller within a period of thirty (30) days from the date of receipt of claim. In the event of non-payment within the due date, the Purchaser shall be liable to pay interest on the outstanding amount at the prevailing Prime Lending Rate (PLR) of State Bank of Hyderabad plus one percent and the Seller can also regulate future coal supplies. Any short supply due to regulation of coal supplies by the Seller will be at the risk of the Purchaser.
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Related to COMPENSATION FOR SHORT LIFTING OF COAL

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