GMR Chhattisgarh Energy Private limited (GCEPL)

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GMR Chhattisgarh Energy Private limited (GCEPL), a subsidiary of GMR Energy, was created to implement 1,370 MW (2 X 685 MW) coal based supercritical power in Raikheda village, Tilda Taluka, Raipur District, Chhattisgarh, India. To develop the project, GMR Energy signed a Project Implementation Agreement with the Government of Chhattisgarh for implementation, operation and maintenance of a 1370 MW Coal based, thermal Power Plant in the state of Chhattisgarh. The MOU was signed in 2007. GCEPL was to sell the electricity output to the regulated market (35%) via a PPA contract with Chhattisgarh State Electricity Board (CSEB), through long term power purchase agreements (35%), and merchant market (30%). The project cost was estimated at Rs82.9 billion (US$1,812.8 million). Financial close was achieved in December 2010 with a debt equity ratio of 75/25, according to company press release. Projectware reported the financial closure of the project in August 2010. Financing comprises a Rs62.17bn 14-year 9months term loan facility and Rs20.73bn equity. In 2013, GMR arranged for additional funding through external commercial borrowing. IIFCL provided two tranches of US$50mn (in June 2013) and US$ 51mn (in November 2013).Both loans had a tenure of 19 years. Construction of the project was delayed due to land acquisition issues. The contract was to be developed on a 40 year Build Own and Operate basis with the concession years starting to count from plant commission date. Expected commissioned date was March 2014.