Dadupur Hydel Power Project

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The Dadupur Hydel Power Project was a 6 MW mini-hydro power project located at District Yamuna Nagar on western Yamuna canal, in the state of Haryana. On June 7, 1999 (extension of MOU was done on March 9,2007) Bhoruka Power Corporation Limited (BPCL) signed a Memorandum of Understanding with Haryana Irrigation Department for setting up this project. The project would produce hydroelectric power by using the approximately 5 meter head provided at Dadupur pond in Haryana, India. The project would install 4 units of 1.5 MW horizontal, ‘S’ type, full Kaplan turbines. The annual energy produced by the project activity was estimated to be 31.51 GWh (at 90% dependability). The total annual energy available after accounting for station auxiliary consumption, transformer losses, transmission line losses and grid outages was estimated to be 28.65 GWh.The Dadupur Hydroelectric project was connected to the grid via substation at Chhachhrauli, which was at a distance of 5 km from the project site. Uttar Haryana Bijli Vitran Nigam (UHBVN) had signed a power purchase agreement (PPA) with Bhoruka Power Corporation (BPCL) on March 4,2008 (Approval of PPA with Haryana Power Generation Company Ltd (HPGCL) by HERC had happened earlier on July 10, 2007 vide Letter from HERC to HPGCL). In order to ensure compliance with the Haryana Electricity Regulatory Commission (HERC) directive to procure up to 3% of total annual consumption of electricity from the renewable and non-conventional energy sources, UHBVN planned to purchase 6 MW from BPCL. As per the HERC approved PPA, UHBVN will purchase electricity at the rate of INR 2.80/unit from the date of commissioning for 12 years and at the rate of INR 1.70/unit for the next three years. The estimated cost of the project was USD 10.3 million (INR 499.2 mn @48.41 INR/USD). Financial closure took place in July 2008. The debt to equity ratio for the project was 70:30. Financing comprised of a term loan of USD 7.2 million (INR 349.4 mn) at the interest rate of 11.5% per annum and USD 3.1 million (INR 149.7 mn) equity brought in by the promoter. The total project cost of USD 10.3mn for an installed capacity of 6 MW translated into USD 1.72 million per MW, which was on a higher side as per HERC standards and was one of the main financial barriers faced by BPCL. BPCL had represented its case for carbon credits for the project, though the current status could not be ascertained.The financial benefits of the revenue obtained by selling of the CERs was expected to improve the Equity IRR of the project by up to 10.62% (for various assumptions noted in the report to UNFCCC). Civil works had started in March 2008 and were targeted to completed by January 2009. The civil works package had been awarded to Chandigarh-based P&R Infra Projects Ltd. In January 2009, work on the electromechanical package awarded to Bangalore-based Boving Fouress was expected to begin. The Dadupur 6MW plant finally started power generation and had been syncronized with the UHBVN grid at Chachhrauli switching station on 19th March 2010.