Dahanu Solar Power Private Limited

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In November 2010, Dahanu Solar Power Private Limited (DSPPL), a SPV set up by Reliance Power Limited (RPL) to execute the project, was awarded the license for setting up a 40MW solar photovoltaic power project at Dhursar in Jaisalmer District of Rajasthan. RPL had acquired the 350 hectares of land required for the project. The Rajasthan Sun Technique's (RPL's other CSP plant, part of JNNSM-I) 100MW CSP plant was coming up in the same area, however this 40MW PV project was not part of the JNNSM program. Electricity generated from the project would be evacuated for consumption in the Combined Regional grid (comprising the electrical system of Northern,Eastern, Western, and North-Eastern grids) of India. The solar plant would use fixed-tilt cadmium telluride thin film solar photovoltaic modules from First Solar Inc. (US). On the basis of international competitive bidding, DSPPL has entered into a fixed price turnkey EPC contract with R-Infra for (i) procurement and supply of foreign and domestic equipment; and (ii) erection, construction, and services for the project. The electricity generated from the project would be evacuated from the project site to the existing 220-kilovolt (kV) Dechu substation of Rajasthan Vidyut Prasaran Nigam Limited (RVPNL) through a 30 km long, 220 kV double-circuit transmission line to be built by DSPPL. Dahanu Solar Power Private Limited (DSPPL) had entered into an 25-year power purchase agreement with R-Infra (another Reliance ADA group company involved in power distribution) to sell 100% of the output of the project for a period of 25 years at a fixed tariff as specified by the CERC RE Tariff guidelines 2009. R-Infra distributes electricity to 2.8 million retail, commercial, and industrial consumers in Mumbai. The electricity purchased from the project would be used by R-Infra to offset its renewable purchase obligations stipulated by the Maharashtra Electricity Regulatory Commission. The Maharashtra Electricity Regulatory Commission had specified that all distribution licensees in Maharashtra state will have to purchase 0.25% of their total electricity requirements from solar energy sources from FY2011 to FY2013. This renewable purchase obligation increases to 0.50% beginning FY2014. Financial closure took place in November 2011.The total project cost was estimated at US$ 150mn (INR 7000mn @46.67 INR/USD).The debt equity ratio for the project was 88/12. Financing comprised of Debt of US$ 132.3mn (INR 6174.4mn) and sponsor equity of US$ 17.7mn (INR 826mn). The US$ 132.3mn external commercial borrowing was contributed by ADB (US$ 48mn approved in November 2011), US Exim Bank (US$ 84.3mn approved in August 2011). The ADB loan had a tenure of 18.5 years (incldusing a grace period of 1 year) and a semi-annual repayment schedule. The US EXIM fixed-rate loan tenure was 16.5 years. Construction for the project was started in September 2011. The plant was commissioned in March 2012 and commercial operation started in April 2012. Further details added to the project description. Apart from ADB, US Exim Bank provided a loan of $84.3million