EMCO Energy Limited

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EMCO Energy Limited was created to develop and operate the 600 MW coal merchant power plant developed in Warora Taluka of Chandrapur District in the state of Maharashtra. EMCO Energy Limited was a wholly owned subsidiary of GMR Energy Limited (GEL). GMR Energy Limited acquired EMCO Energy Limited from EMCO Ltd, the original developer in July 2009. The project was expected to be developed in two phases of 300MW each. In January 2009, EMCO Energy Limited had signed power purchase agreement with the Maharashtra State Electricity Distribution Company (MSEDCL) for 200 MW at INR 2.88/kWh. Under the terms of the agreement, the sponsor would supply power by 2013. The balance output of 400 MW was expected to be sold on merchant basis. It was reported that EMCO Energy Limited was in talks to sell 200 MW to MPPTC (Madhya Pradesh), 100 MW to GUVNL (Gujarat) and 20 MW to Western Railway constituents. In Jan 2009, Maharashtra, had finalized bids submitted by 3 generators - Adani Power, Indiabulls and Emco Energy for the supply of 2,850 Mw (under case-I bidding, a merchant power procurement process where the developers take full responsibility for project development including acquisition of land, availability of water and fuel linkages.). Indiabulls would supply 1,450 Mw at INR 3.26-3.42/kWh and Adani Power 1,200 Mw at INR 3.26/kWh. The estimated project cost was about USD 761 million (INR 34800 million at 48.41 INR/USD). Financial close took place in March 2010. Financing comprised USD 539.1 million (INR 26100 mn) 14-year and 6-month term loan in debt and USD 179.7 million (INR 8700 mn) in equity at a debt/equity ratio of 75/25. Axis Bank was the sole debt arranger and syndicator. Construction was expected to start during 2010. Land acquisition, evacuation plan and water allocation for both the phases were completed and the requisite approvals such as coal linkage and environmental clearance (MoEF) for phase-I (300 MW) were obtained. The order for Boiler-Turbine-Generator equipment was placed with SEC China. The fisrt plant was expected to be operational in August 2012 and the second one in November 2012. Unit-1 of 300MW was commissioned on 7th February 2013 and Unit-2 of 300MW was commissioned on 27th August 2013.