Azure Power 34 MW Solar Project_Punjab

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In December 2013, Azure Energy Private Limited (AEPL), signed an MoU with Punjab Energy Development Agency (PEDA) for setting up a 34-MW photovoltaic solar project at two locations - district Muktsar and district Fazilka in the state of Punjab under the Punjab New & Renewable Sources of Energy (NRSE) Policy 2012. The output from the project would be fed to the North-East-West-North-East (NEWNE) grid of India. The project has deployed thin-film technology. Power evacuation was planned through a 66KV line to substation, which, as per the state policy, was the responsibility of Punjab state transmission utility. Azure Energy Private Limited had entered into a 25-year Power Purchase Agreement with Punjab State Power Corporation Limited (PSPCL), which was the agency to purchase solar power generated by independent solar power producers. The PPA would be effected at the time of commissioning of the project. The CERC determined tariff for normal rate of depreciation was INR 8.75/kWh (US$ 0.143/kWh)and for accelerated rate of depreciation was INR 7.87/kWh (US$ 0.129/kWh). Transmission and/or wheeling charges would be paid by AEPL. The project attained financial closure on 13th March 2014 with a debt/equity ratio of 75/25. The estimated project cost at the time of financial closure was US$ 41.1mn (INR 2510mn @61 INR/USD). Financing comprised of Debt of US$ 30.8mn (INR 1880mn) and sponsor equity of US$ 10.3mn (INR 30mn). The 14-year 6-months term loan was arranged by PTC India Financial services Limited. The plant construction started in January 2014 and was commissioned on 30th October 2014.