Minimum Demand Guarantee Sample Clauses

Minimum Demand Guarantee. To reduce demand risk for the Concessionaire, an agreement with Pashamylaram Common Infrastructure Private Limited, (the Take or Pay Agreement) shall be signed for allowing the Concessionaire to collect fixed Membership Fee and one month advance towards Operational expenses. Pashamylaram Common Infrastructure Pvt. Ltd., (PCIPL) shall collect the fixed Membership Fee from its members (the industrial units of the Pashamylaram Industrial Park) and deposit the same with the Concessionaire. TSIIC will also be a signatory for this tripartite agreement. The Membership Fee amount shall be used as a deposit towards Minimum Demand Guarantee and in case of demand falling short of 30% of the installed capacity (480 KLD) in any financial year, the Concessionaire has the right to collect the shortfall from Membership Fee. In such eventuality, the Pashamylaram Common Infrastructure Pvt. Ltd., (PCIPL) has to make good the shortfall amount within 30 days of such recovery by the Concessionaire.