23.1 The Concessionaire agrees to provide to NHAI cash payment (the "Negative Grant") or NHAI agrees to provide to the Concessionaire cash support by way of an outright Grant (the "Grant") equal to the sum, if any, set forth in the Bid of the Bidder and accepted by NHAI namely, Rs.________ million (Rupees________________ million) in accordance with the provisions of this Article XXIII.
23.2 The Concessionaire shall pay to NHAI the Negative Grant proposed in its Bid as set forth below:
Concession Year | 1 | 2 | 3 | ------ | ------ | 14 | 15 |
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Negative Grant shall be paid in advance within 90 (ninety) days of the commencement of the year for which it is due and payable.
23.3 Subject to provisions of the Clause 23.4, the Grant shall be applied by the Concessionaire for meeting the capital cost of the Project and shall be treated as part of the shareholders' funds (the "Equity Support").
23.4 The Equity Support shall:
(a) not exceed 25% of the Total Project Cost; and
(b) in no case be greater than total equity capital actually subscribed and paid in cash by the shareholders for meeting the Total Project Cost as set forth in the Financing Package.
23.5 The balance of the Grant (if any) available after deducting there from the amount of Equity Support shall be provided to the Concessionaire in accordance with this Article XXIII for meeting O&M Expenses of the Project (the "O&M Support").
23.6 The whole or any part of the Grant shall be disbursed by NHAI to the Concessionaire if and only if
23.6.1 the Concessionaire is not in Material Breach of this Agreement at the time of such disbursement; and
23.6.2 the Concessionaire has contributed and spent on the Project at least 80% (eighty percent) of the total Equity (excluding Equity Support) required to be provided as part of the Total Project Cost.
23.7 The disbursement of the Equity Support pursuant to this Article XXIII shall be made by NHAI to the Concessionaire proportionately along with the balance loan funds to be disbursed by the Senior Lenders under the Financing Documents for meeting the Total Project Cost. NHAI shall disburse each tranche of the Equity Support as aforesaid by credit to the Escrow Account within 15 (fifteen) days of the release of each loan installment by the Senior Lenders to the Concessionaire provided the Concessionaire has submitted to NHAI along with each disbursement request a certificate from its Statutory Auditors certifying the above particulars and has given at least 7 (seven) days to NHAI for processing such request.
23.8 The O&M Support shall be disbursed by NHAI to the Concessionaire by credit to the Escrow Account in quarterly installments and the first such installment shall be released within 30 (thirty) days of the COD. Each such installment shall be a sum equal to 1 (one) per cent of the Total Project Cost and such installments shall be paid by NHAI until the Grant is fully disbursed to the Concessionaire.
23.9 If NHAI shall fail to disburse any tranche of the Equity Support or the O&M Support within the periods set forth for the payment thereof to the Concessionaire, NHAI shall pay interest on such delayed tranche @ SBI PLR plus two per cent.