Section 14(1) in The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand Petroleum and Petroleum Products Pipelines) Regulations, 2010
(1)The, entity shall meet the annual target of transporting petroleum and petroleum products equal to the volume of petroleum and petroleum products quoted in the bid and the Board shall monitor the actual progress in, this regard on a quarterly basis:Provided that non-fulfillment of the annual target by the entity shall result in default and encashment of the performance bond on the following basis, namely:-(a)For the first default:a. ten per cent. of the amount of the performance bond for the default upto ten per cent. of annual target of transporting petroleum and petroleum products;b. twenty per cent. of the amount of the performance bond for the default upto fifty per cent. above ten per cent. of annual target of transporting petroleum and petroleum products;c. twenty five per cent. of the amount of the performance bond for the default above fifty per cent. of annual target of transporting petroleum and petroleum products;(b)For the second default:a. twenty per cent of the amount of the performance bond for the default upto ten per cent. of annual target of transporting petroleum and petroleum products;b. fourty percent to the amount of the performance bond for the default upto fifty per cent. above ten percent of annual target of transporting petroleum and petroleum products;c. fifty percent of the amount of the performance bond for the default above fifty per cent. of annual target of transporting petroleum and petroleum products; -(c)one hundred percent of the amount of the performance bond for the third default:Provided further that the entity shall make good the encashed performance bond in each of the cases at clause (a) to (c) within a week of encashment and in case of not meeting this requirement, the authorization shall be liable for termination.
