GVK Power (Goindwal Sahib) Ltd

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GVK Power (Goindwal Sahib) Ltd was created to implement and operate the 540 MW (2x270 MW) pulverized coal power plant at TarnTaran district, Punjab state. Project was also known as Goindwal Sahib Thermal Project. GVK Power (Goindwal Sahib) Ltd was a subsidiary of GVK Power created to implement the project. GVK Power and Punjab State Electricity Board (PSEB) signed the letter of implementation for this project in May 1998. A revised MOU was signed between GVK and PSEB on Feb 2006 for execution of the project. The sponsor signed amended and restated PPA for this project with Punjab State Electricity Board (PSEB) twice in 2007 and in May 2009. The environment clearance was obtained in September 1999 and an updated clearance in May 2008. EPC contracts signed in September 2009 with Punj Lloyd. The first unit was expected to become operational 36 months and the second one 42 months after financial closure. The first plant was expected to be operational in January 2013 and the second one in April 2013. The estimated levellised tariff based on approved cost of capital was RS.2.63 per unit. GVK Coal (Tokisud) Company Private Limited was created to develop and operate the Tokisud north captive coal mine in South Karanpura Coalfield situated in Hazaribagh district in Jharkhand for supply of coal to the 540 MW of GVK Power (Goindwal Sahib) Ltd. GVK Coal (Tokisud) Company Pvt. Ltd. entered into a Coal supply Agreement with GVK Power (Goindwal Sahib) Ltd for the sale of coal. GVK Coal (Tokisud) Company Private Limited achieved financial closure on April 27, 2010. The project cost was estimated to be INR32 billion (US$700 million) by the project sponsor in the financial documents. However, the government of India had an approved cost of INR29,638.1 (US$648 million) at financial closure. According to company reports to the government of India, the project reached financial closure in February 2010 with a debt/equity ratio of 80/20. Financing comprised Rs24bn in debt and Rs8bn in equity arranged by IDBI Bank.