Ganges Green Energy Private Limited

Active

Ganges Green Energy Private Limited (GGEPL, a Moser Baer Group compnay), signed an MoU with Gujarat Energy Development Agency (GEDA) for setting up a 25-MW photovoltaic solar project in Mervadar & Dhank village, in Rajkot district of Gujarat, under the Gujarat Solar Policy 2009 (Phase-II). The project would comprise of 35,215 modules of Dupont make, 69,850 modules of First Solar make, 41,844 modules of Hanwha SolarOne, and 13,370 modules of Moser Baer. The average PLF for the first year of operation was expected to be 20.767%. GGEPL had contracted for a fixed price EPC contract through an international competitive bidding process. The output from the project would be evacuated into the North-East-West-North-East (NEWNE) grid of India through 66/11 kV Mervadar village Substation of GETCO, and as per the state policy, this was the responsibility of Gujarat Energy Transmission Corporation Limited (GETCO). Ganges Green Energy Private Limited (GGEPL) 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. As per GEDA documents, the PPA had been signed before 11th December 2011. 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 for units commissioned before 29th January 2012. The total capacity of 25MW was eligible for carbon credits and GGEPL had applied for the same. Proceeds of carbon credit were to be shared as follows: (a) 100% by GGEPL 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 GGEPL and GUVNL. Transmission and/or wheeling charges would be paid by GGEPL. Construction for the plant was started in June 2011 (date of signing of contract for onshore services, civil works, onshore and offshore supply) and GEDA documents indicate that the plant was commissioned before December 2011 (corroborated by company sources as well). In absence of credible information on dates of financing, we have considered December 2011 as the financial closure date for our database. The project attained financial closure on 29th March 2014 at a debt/equity ratio of 67/33. The project cost estimated at the time of financial closure was US$ 54.2mn (INR 3304.4mn @61 INR/USD). Financing comprise a 12-year 3-months term loan of US$ 36.3mn (INR 2214mn) and sponsor equity of US$ 17.9mn (INR 1090.4mn). The term loan had a repayment schedule of 48 quarterly installments. Lenders were Power Finance Corp, India Infrastructure Finance Co Ltd and Rural Electrification Corp.