Beta Wind Farm (Gujarat & Andhra) Private Limited

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Orient Green Power Company Limited through its subsidiary Beta Wind Farm Private Limited (Beta),entered into an agreement with Andhra Pradesh and Gujrat Government, to develop 144MW wind power project across the states of Andhra Pradesh (93.6MW) and Gujarat (50.4MW). Beta was initially planning to set up a 300 MW wind farm in Tamilnadu, but evacuation and infrastructure issues in Tamil Nadu forced them to split the 300-megawatt capacity across two states - 156 Mw in Tamil Nadu and 144 Mw in the states of Gujarat and Andhra Pradesh. The wind farm would involve the building of wind turbines of Gamesa, Vestas, GE & Suzlon (each with varying capacity). The farm was expected to have a load factor of 26%. The electricity generated from the project would be evacuated by the respective Andhra and Gujarat state grids. The EPC for the power plant had been awarded to Shriram EPC. Shriram EPC would develop,construct,commission operate and maintain the project at an all-inclusive price. For the Andhra phase of the project, Beta had entered into sub-lease Agreement for the land with RCI Power post completion of alienation process. RCI power had already obtained the rights from Andhra Pradesh Government and the rights for the implementation of the 93.6 MW project have since been transferred to Beta Wind Farm Private Limited under tripartite Agreement. For the Gujarat project, Beta had entered into sublease agreement with Suzlon Energy Limited (SEL). The acquisition of land had been fully completed by Suzlon Energy. Shriram EPC had entered into an blanket O&M agreement with the WEG suppliers Gamesa, Vestas, GE, Suzlon & Leitwind Shriram. The WEG suppliers would be responsible and bear the cost for operating and maintaining WECs for at least the first 3 to5 years from the Commercial Operation Date of the project. Beta Wind Farm Private Limited had already approached Andra Pradesh Central Power Distribution Company Limited (Andhra Discom) and Gujarat Urja Vikas Nigam Limited (Gujarat Discom )- for entering into Power Purchase Agreement. The APPC (Average Power Purchase Cost) 25-year base feed-in tariff as per APERC (Andhra Pradesh State Regulator) tariff order for 2013, was US$ 0.088/Unit (INR 4.70 per unit @ 53.44INR/USD). The APPC (Average Power Purchase Cost) 25-year base feed-in tariff as per GERC (Gujarat State Regulator) tariff order for 2013, was US$ 0.079/Unit (INR 4.23 per unit @ 53.44INR/USD). The transmission charges would be paid by Beta Wind Farm to the state transmission utility. The total capacity of 144 MW was eligible for CDM benefits and the company had initiated the process with UNFCC. Financial closure took place on 12th January 2012.The total project cost at the time of financial closure was US$ 183.4mn (INR 9800mn @53.44 INR/USD).The debt equity ratio for the project was 54/46. Financing comprised of a 10-year term loan of US$ 100.3mn (INR 5360mn) and sponsor equity of US$ 83.1mn (INR 4440mn). The term loan would mature in 2023. Axis Bank (INR 730mn) was the mandated lead arranger. For the term loan, Orient Green Power had issued a corporate guarantee for the project to Axis Bank, on behalf of Beta Wind Farm. The other participating banks include Andhra Bank(600mn), Canara Bank (880mn), Dena Bank (410mn), Indian Overseas Bank (1000mn), Karnataka Bank (410mn), Tamilnad Mercantile Bank (330mn), Vijaya Bank (1000mn). For the Andhra phase of project (93.6MW), the construction of Wind Electric Generators and Civil work are presently underway and expected to be completed by end of March 2013, with 50.4 MW to be completed by December 2012 and balance by March 2013. For the Gujarat phase of the project (50.4MW), the construction process for Wind Generators for 25.20 MW was presently underway and was expected to be completed by end of December 2012. The balance 25.20 MW was expected to be completed by March 2013.