ENAM Surel Solar Plant

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Visual Percept Solar Projects Private Limited (VPSPPL, a subsidiary of Talma Chemical Industries Private Limited), signed an MoU with Gujarat Energy Development Agency (GEDA) for setting up a 25-MW photovoltaic solar project at Surel in Surendranagar District in the state of Gujarat, under the Gujarat Solar Policy 2009. VPSPPL had installed amorphous silicon thin-film solar PV modules from Hanwha SolarOne (12MW) and China Sunergy (13MW). VPSPPL had contracted Sterling and Wilson Limited (SAWL) for a fixed price EPC contract. The output from the project would be fed to the North-East-West-North-East (NEWNE) grid of India. Power evacuation, as per the state policy, was the responsibility of Gujarat Energy Transmission Corporation Limited (GETCO). Visual Percept Solar Projects Private Limited (VPSPPL) had entered into a 25-year Power Purchase Agreement with the state utility Gujarat Urja Vikas Nigam Limited (GUVNL), which would be effected at the time of commissioning of the project. The PPA was signed on 15th December 2010. The APPC (Average Power Purchase Cost) as per the Gujarat Solar Policy 2009, was US$ 0.33/Unit (INR 15 per unit @ 45INR/USD) for the first 12 years, and US$ 0.11/Unit (INR 5 per unit @45 INR/USD) from 13th year to 25th year. The total capacity of 25MW was eligible for carbon credits and VPSPPL had applied for the same. Proceeds of carbon credit were to be shared as follows: (a) 100% by VPSPPL in the first year after the date of commercial operation of the generating station/ transmission system;(b) in the 2nd year the share of GUVNL would be 10% which would be progressively increased by 10% every year up to 50% whereafter the proceeds would be shared in equal proportion, by SLREPL and GUVNL.Transmission and/or wheeling charges would be paid by VPSPPL. Dates of financial closure couldn't be verified, however the financial closure had been executed before July 2011 as per ICRA (credit rating of the term loan) and December 2011 as per GEDA document.The total estimated project cost at the time of financial closure was US$ 70.7mn (INR 3300mn @46.67 INR/USD). The debt equity ratio was 70/30. Financing comprised term loan of US$ 49.5mn (INR 2310mn) and sponsor equity of US$ 21.2mn (INR 990mn). The 12-year term loan had a moratorium of 1 year and repayment schedule of 11 years. Construction for the plant was started in February 2011 (date of signing of contract for onshore services, civil works, onshore and offshore supply) and the plant became operational in January 2012 (GEDA documents also indicate commissioning before May 9th 2012). In absence of credible information on dates of financing, we have considered July 2011 (credit rating of term loan) as the financial closure date for our database. All data updated based on new available information. Plant commissioned in January 2012.