Greenko Dikchu HPP

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On 1st March 2006, Sneha Kinetic Power Projects Private Limited, a project SPV of Greenko Energies Private Limited, signed an Implmentation Agreement with Sikkim Government for setting up a run-of-the-river 96MW (3x32 MW) hydroelectric power project on a Build, Own, Operate and Transfer (BOOT) basis for 35 years on the Dikchu River, a tributary of river Teesta, in Sikkim. The Project components were located in the East and North Sikkim district of the state of Sikkim with Dam at the Lingdoc Village and the Power House site at Dikchu. The project utilized the fall of head in the River course, of about 350 meters between these two villages. The project scope included a 35m high concrete dam, Desilting chamber, 4.6km long and 4m diameter head race tunnel terminating in a surge shaft, 9m diameter surge shaft, 600m long & 3m diameter pressure shaft, an underground power house having an installation of 2 Vertical Francis turbine generating units of 48 MW each.The PLF was 64.33. The electricity produced at 11 kV would be stepped up to 132 kV and evacuated to Mangan Pooling Station through a 132 kV D/c line with single moose conductor, Gangtok Feeder which was a part of NEWNE (Integrated Northern, Eastern, Western and North Eastern grids of India) Power Grid. The water after power generation was discharged back to the Dikchu River by means of underground tunnel. The project activity would generate annual gross energy of 541000 MWh and the net energy available for export to grid would be 534508 MWh after deducting 0.7% towards Auxiliary consumption and 0.5% towards Transformation losses. Environmental clearance for the project was received on 1st April, 2008. The 39 hectares of private land had been acquired. Approval for diversion of forest land was obtained on 22nd February,2010. The power generated from the project of 96MW was primarily expected to be sold to state electricity board through a longterm power purchase agreement ("PPA"). As per the SERC (state regulator) approved PPA, Sikkim SEB would purchase electricity at the levelized rate of US$ 0.058/Unit (INR 2.72/unit @47INR/USD) from the date of commissioning. Out of the expected net energy generation, 12% of the energy generated for the first 15-years, and 15% of the energy generated from 16th year onwards, was to be provided free of cost to sikkim Government. Sneha Kinetic Power had represented its case for carbon credits for the project, and UNFCC was currently validating the project.The financial benefits of the revenue obtained by selling of the CERs was expected to improve the Equity IRR of the project. Financial closure took place on 10th October 2011 at a debt to equity ratio of 70/30. The estimated cost of the project was US$ 158.5mn (INR 7450mn @47 INR/USD). Financing comprised a debt of US$ 110.8mn (INR 5210mn) and USD 47.7mn (INR 2240mn) of sponsor equity. The 14-year 3-months term loan was arranged by Industrial Development Bank of India (1500mn), ICICI Bank Limited (2210mn), and PTC India Financial Services Ltd (1500mn). The DPR (detailed project report) was approved by the Sikkim Government in 31st July, 2008. The Techno Economic Clearance to the project was accorded in 28th November 2008 by the Sikkim Goverment. The First unit of the Project was scheduled to be commissioned in August 2013 and the third unit in December 2013.