Connect Wind (India) Private Limited

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Connect Wind (India) Private Limited (Connect Wind), a subsidiary of PPS Enviro Power Private Limited, entered into an agreement with Tamilnadu Government to develop a 5.4MW wind farm located at Thirunelveli district in Tamilnadu (Mythos Wind Park). The project involved building 9 units of Vestas V-47 wind turbines (660kW each). The electricity generated from the project would be supplied to the Tamilnadu Generation and Distribution Corporation (“TANGEDCO”) connected to the Southern Regional (“SR”) Electricity grid of India. Connect Wind was expected to sell the power from Mythos Wind Park to Tamilnadu State Electricity Distribution Company Ltd (TNEDCL) through a PPA. The APPC (Average Power Purchase Cost) 20-year base feed-in tariff as per applicable TNRC (Tamil Nadu State Regulator) tariff order dated 28 Dec 2010,was US$ 0.040/Unit (INR 2.37 per unit @58.6INR/USD). The transmission charges would be paid by Conenct Wind to the state transmission utility (“TANTRANSCO” (Tamil Nadu Transmission Corporation Limited). The net tariff (INR 4.23/kWh) for the project activity (5.4 MW) would be the weighted average of tariff determined under APPC+ REC scheme (INR 4.77/kWh) and under preferential tariff scheme (INR 3.39/kWh). The total capacity of 5.4MW was eligible under CDM benefits under UNFCC. Financial closure took place on 28th March 2011. The total project cost at the time of financial closure was US$ 6.45mn (INR 377.9mn @58.6 INR/uSD).The debt equity ratio for the project was about 65/35. Financing comprised of a 13-year term loan of USD 4.2mn (INR 245mn) and sponsor equity of US$ 2.3mn (INR 132.9mn). The term loan was arranged by Reliance Capital. Construction for the wind farm started in June 2010 and was fully commissioned in March 2011.