Dirang Energy Private Limited - Gongri HEP

Active

Prospective

In May 2007, Dirang Energy Private Limited, a subsidiary of Patel Engineering Limited, signed a 40-year concession agreement with Arunachal Pradesh Government for setting up a 2x72 MW run-of the river type hydro power project on river Gongri, a tributary of river Bichom in Kameng Basin in West Kameng district. Gongri HEP had earlier been planned with 90 MW capacity. However, the capacity was later revised to 144 MW after detailed scrutiny of the project.The project used 2 numbers of Francis type turbines each of rated capacity of 72MW. The project was expected to generate 623.19 MU in every 90% dependable year.The electricity that was generated was exported to the Arunachal Pradesh state power transmission Company. The operation and maintenance (O&M) of the Hydel Project was expected to be done in-house by Patel Engineering. The forest clearance for the project was accorded in November 2012 and environment clearance in March 2013. Land for the project had been acquired. Dirang Energy Private Limited (DEPL) had got the project on an allotment basis from the Government of Arunachal Pradesh on build, own, operate, and transfer basis. The ownership of the unit vests with DEPL for a period of 40 years.Patel Engineering held a 74% stake in the project while the Government of Arunachal Pradesh held a 26% stake. Arunachal Pradesh State Electricity Board (APSEB) had signed a power purchase agreement (PPA) with Dirang Energy Private Limited, the SPV established to implement the project. As per the APERC (state regulator) approved feed-in tariff, APSEB was expected to purchase electricity at the levelized rate of US$ 0.078/Unit (INR 3.69/unit @47INR/USD) from the date of commissioning. Out of the expected net energy generation, 12% of the energy generated was to be provided at free of cost to Arunachal Government. Dirang Energy was also expected to give free power (up to 35 units) at INR 0.01/kWh for local catchment area development. The project was eligible for UNFCC carbon credits. The project attaned financial closure in February 2013. The estimated project cost at the time of financial closure was US$ 229.3mn (INR 13440mn @58.6 INR/USD). Financing comprised of a 17-year 6-months term loan of US$ 152.5mn (INR 8940mn) and sponsor equity of US$ 76.8mn (INR 4500mn). The debt equity ratio was 66/34. The lead arrangers were Axis Bank and IDBI bank. The other participating banks were Central Bank of India, Canara Bank, and Corporation Bank. The construction activities of the project were expected to start in August 2013, and get commissioned in 2017.

Energy

World Bank Group

Project

Commercial, Wind, Government, Hydro, Power Generation (CCGT)