Essel 20MW Jodhpur Solar Power Project

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In April 2013, Essel Mining & Industries Limited (EMIL), was awarded a 20 MW solar thermal power project at Bhadla village, Phalodi tehsil of Jodhpur district in Rajasthan, under the Rajasthan Solar Energy Policy 2011 - Phase-I bidding. Under the scheme the total aggregated capacity of grid connected Solar projects was expected to be 100 MW. 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 projects would be based on Solar Photo Voltaic technology for power generation.The EPC and O&M agreements for the project were with Essel Infra. The Rajasthan Government had designated Rajasthan Renewable Energy Corporation Limited (RRECL) as the nodal agency for procurement of solar power through competitive bidding in February 2013. The off-taker for the Project would be RRECL. In February 2013, a total of 23 bids were received for projects with a cumulative capacity of 185MW. The highest rate quoted was INR 8.25/kWh. 17 of the bidders had quoted rates less than INR 8/kWh, and 12 of them INR 7.50/kWh or below. 4 bidders had offered to sell solar-generated electricity at rates of INR 7/kWh or below. Essel Mining won 20MW project by quoting the lowest tariff of INR 6.45/kWh (US$ 0.1057/kWh). However, the other bidders were asked to match the lowest price (L-1, which was INR 6.45/kWh), since the allocation of projects would be based on the L1 quoted tariff. Only 75MW worth of projects agreed to the L1 prices. Financial closure took place on 31st January 2014.The total project cost was estimated at US$ 25.7mn(INR 1565mn @61 INR/USD).The debt equity ratio for the project was expected to be 70/30. Financing was expected to comprise 13-year 3-months term loan of US$ 18.0mn (INR 1095mn) and sponsor equity of US$ 7.7mn (INR 470mn). The term loan had a quarterly repayment schedule. The loan was provided by HDFC Bank. Comissioning of all the projects were expected by December 2014.