GMR Charanka Solar Plant 25MW

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In October 2010, GMR Energy Limited (through its SPV, GMR Gujarat Solar Power Private Limited), signed an MoU with Gujarat Energy Development Agency (GEDA) for setting up a 25MW photovoltaic solar project at Charanka in Patan district of Gujarat, under the Gujarat Solar Policy 2010. The output from the project would be fed to the North-East-West-North-East (NEWNE) grid of India. Power evacuation was planned through an 8 Km 66 KV line, which, as per the state policy, was the responsibility of Gujarat Energy Transmission Corporation Limited (GETCO) and GETCO had already commenced work on it. GMR Gujarat 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 APPC (Average Power Purchase Cost) as per the Gujarat Solar Policy 2010, 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. Proceeds of carbon credit were to be shared as follows: (a) 100% by GMR Gujarat 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 GMR Gujarat and GUVNL.Transmission and/or wheeling charges would be paid by GMR Gujarat. Financial closure took place in May 2012.The total project cost was US$ 56.1mn (INR 3000mn @53.44 INR/USD).The debt equity ratio for the project was 70/30. Financing comprised of Debt of US$ 42.3mn (INR 2260mn) and sponsor equity of US$ 13.8mn (INR 740mn). The 12-year 7-months term loan had a repayment schedule of 47 quarterly installments. The debt was solely arranged by IDBI and other participating banks were Export-Import Bank of India and IDFC. The project was successfully commissioned in December 2011.