Clean Wind Power (Satara) Private Limited

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Clean Wind Power (Satara) Private Limited (CWSPL), a Special Purpose Vehicle promoted by Hero Future Energies Private Limited (HFEPL, a Hero Group company) entered into an agreement with Maharashtra Government to develop a 44MW wind farm located at Sangli district of Maharashtra. The project was intended to be implemented as 74 MW (2x37 MW) wind power project. However, Hero had decided to short close the project to the capacity of 44MW at the same location. The wind farm would involve the building of 22 Inox turbine units of 2MW capacity each. The electricity generated from the project would be evacuated by the Maharashtra state grid. CWSPL had entered into agreements with Inox Wind Limited to develop (including operation and maintenance of) this greenfield project. The Satara Wind farm was expected to sell the power to State distribution company through a 25-year PPA. CWSPL had already signed PPA for 24.0 MW at an attractive preferential of INR 5.81 per unit for 13.0 years with MSEDCL (Maharashtra State Electricity Distribution Company Limited). The total capacity of 44 MW was eligible under REC as per the CERC and CDM benefits. Financial closure took place on 29th March 2014.The total project cost at the time of financial closure was US$ 47mn (INR 2870mn @61 INR/USD).The debt equity ratio for the project was about 75/25. Financing comprised of a 13-year 4-month term loan of US$ 35.2mn (INR 2150mn) and sponsor equity of US$ 11.8mn (INR 720mn). The term loan was provided by State Bank of India. Part of the plant (24.0 MW) was commissioned in March 2014, however the generation had been low due to non-availability of transmission infrastructure. The balance 20.0 MW capacity was expected to be operational in February 2015.