Beta Wind Farm (Tamil Nadu) 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 Tamilnadu Government, to develop a 156MW wind power project across Tirunelveli, Tuticorin and Theni districts in the state of Tamilnadu. 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 Tamilnadu state grid. 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. As per the agreement signed, Shriram EPC would acquire the entire land required for the project and transfer the development rights to the company prior to commencement of operations. Shriram EPC had received all the statutory and non-statutory clearances necessary for the project. Shriram EPC had entered into an blanket O&M agreement with the WEG suppliers Gamesa, Vestas, GE & Suzlon. The WEG suppliers would be responsible for operating and maintaining WECs for at least the first 3 years from the Commercial Operation Date of the project. Beta Wind Farm Private Limited had entered into PPA agreement (worth nearly INR 1500mn) with various industries in that belt under Group Captive Power Plant Policy in Tamil Nadu. The industrial /commercial consumers would have at least 26% equity stake in the company and would consume at least 51% of the power produced. The details of the pricing with these industrial consumers couldnt be ascertained at the time of collection of this information. However, the APPC (Average Power Purchase Cost) 20-year base feed-in tariff as per TNRC (Tamil Nadu State Regulator) tariff order, was US$ 0.066/Unit (INR 3.51 per unit @ 53.44INR/USD). The transmission charges would be paid by Beta Wind Farm to the state transmission utility. The total capacity of 156 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$ 198mn (INR 10583 mn @53.44 INR/USD).The debt equity ratio for the project was 67/33. Financing comprised of Debt of US$ 132.9mn and sponsor equity of US$ 65.1mn. Debt comprised of INR-Term loan of USD 102.9mn (INR 5500mn @ 53.44 INR/USD), a dollar denominated term loan of USD 30mn (INR 1603mn), and sponsor equity of USD 65.1mn (INR 3480mn). The US$ 30mn will mature in March 2019 (7-year term) and INR 5500mn term loan would mature in March 2022 (10-year term). Axis Bank (INR 1480mn) 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 Canara Bank (980mn), Andhra Bank (800mn), Bank of India (590mn), Dena Bank (590mn), and Karnataka Bank (590mn), and Tamilnadu Mercantile Bank (470mn). 144.40MW out of the total 156MW capacity has already been commissioned. Construction for the wind farm was nearing completion and was expected to start by March 2013.