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    • Committed scale of production

    Definition of Committed Scale of Production

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    Committed Scale of Production means the production capacity allocated to the Beneficiary Firm by the Government, subject to selection under the RFP.
    Sample 1
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    Examples of Committed Scale of Production in a sentence

    The Beneficiary Firm agrees that it shall achieve the Committed Scale of Production and overall Value Addition at the Mother Unit level or through its ancillary units within 5 (five) years from the Appointed Date.

    If the Beneficiary Firm fails to achieve the Committed Scale of Production as specified in Schedule - E, the Government shall have the right to deduct from the Subsidy payable under Clause 11.1, 2 (two) times the Subsidy due and payable corresponding to the shortfall from the Committed Scale of Production.

    The Government shall authorize representatives to inspect the certificates provided by the Beneficiary Firm validating the Value Addition and Committed Scale of Production.

    The Beneficiary Firm acknowledges that payment of Subsidy shall commence once the Beneficiary Firm exceeds the Value Addition at the Mother Unit level, i.e., achieves greater than 25% (twenty five per cent) of the Committed Scale of Production by the Beneficiary Firm in accordance with the provisions of this Agreement.

    By way of illustration and for the avoidance of doubt, the deduction to the Subsidy shall be computed as follows: If the Committed Scale of Production is 10 GWh, and the Beneficiary Firm achieves production/sale of 8 GWh, the Government shall deduct Subsidy payable for 2 * (10 - 8) = 4 GWh. The Beneficiary Firm would, under such circumstance, be paid Subsidy for (10 - 4) = Six (6) GWh of capacity, notwithstanding commissioning of 8 GWh.

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