GMR Rajahmundry Energy Ltd

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GMR Rajahmundry Energy Ltd was create to develop and operate a 768 MW (2 X 384 MW) gas-based thermal power plant at Vemagiri village, near Rajahmundry town, India. The project was an expansion of the Vemarigi power plant build in 2003-08 (Project ID 3408) and aimed to take advantage of the availability of higher gas from KG basin and adequate land at the site. As of march 2011, the company had no signed any power purchase agreement for the output of the plant. The project company expected to benefit of the merchant rates in the short term and had a long term model of merchant /power purchase agreement of 40/60. Plant was expected to be operational in March 2012 with the simple cycle in December 2011 and the combined cycle in March 2012. Larsen & Toubro was the EPC contractor. Project cost was estimated at Rs32.9 billion (US$ 719.4 million). Financial close was on 14 Sep 2010 with a debt equity ratio of 75/25. Financing comprised a Rs26bn 14-year term loan facility and Rs6.5bn equity. The debt was arranged by IDBI. On March 2013, GMR closed funding of US$ 138.2mn (INR 8100mn @58.6 INR/USD) for catering to project cost over-run. Financing comprised a 12-year term loan of US$ 75.9mn (INR 4450mn) and sponsor equity of US$ 62.3mn (INR 3650mn).Lenders were IDBI, Allahabad Bank, Andhra Bank, IDFC Ltd, Indian Overseas Bank, Jammu and Kashmir Bank, Punjab and Sind Bank, Punjab National Bank, State Bank of Patiala, Syndicate Bank, United Bank of India. Loan was arranged by IDBI Bank. On March 2015, the project was refinanced by a consortium of 11 banks led by SBI- Allahabad Bank (INR 248 million), Andhra Bank (INR 356 million), IDFC Ltd (INR 820 million), Indian Overseas Bank Ltd (INR 356 million), Jammu & Kashmir Bank Ltd (INR 350 million), Punjab National Bank (INR 463 million), Punjab & Sind Bank (INR 175 million), State Bank of Patiala (INR 356 million), United Bank of India(INR 356 million), Syndicate Bank Ltd (INR 180 million), IDBI Bank Ltd (INR 740 million). Additional financing for cost overrun.