Hetero Wind Power Limited

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Hetero Wind Power Limited, a subsidiary of Hetero Group of India, entered into an agreement with Andhra Pradesh Government, to develop 54MW wind power project at Tirumalayapalli in Cuddapah district of Andhra Pradesh. The wind farm would involve the building of 36 units (1.5MW each) of ReGen make V-87 model wind turbines.The project was expected to export 111,088 MWh to Southern Grid of India. The plant load factor was expected to be 25.41%. ReGen Powertech was expected to construct, commission, operate and maintain the project at an all-inclusive price. Hetero Wind Power Limited was expected to sell the power to Andhra Pradesh Central Power Distribution Company Limited (Andhra Discom). The APPC (Average Power Purchase Cost) 25-year base feed-in tariff as per APERC (Andhra Pradesh State Regulator) tariff order, was US$ 0.094/Unit (INR 5.50 per unit @58.6INR/USD). The transmission charges would be paid by Hetero to the state transmission utility. The project attained financial closure on 15th May 2013 at a debt/equity ratio of 78/22. The estimated project cost at the time of financial closure was US$ 65.2mn (INR 3822mn @58.6 INR/USD). Financing comprised of a 15-year term loan of US$ 30.7mn (INR 1800mn), a US$ 20mn external commercial borrowing, and sponsor equity of US$ 14.5mn (INR 850mn). ICICI Bank was the lead arranger for both domestic currency loan and external commercial borrowing. The project was under construction and Hetero was expected to be commission 30MW in 2012 and 24MW in 2013.