Hindustan Electricity Generation Company Private Limited

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Hindustan Electricity Generation Company Private Limited (HEGCPL) was an Independent Power Project (IPP) located at Umbre village near Talegaon in Pune district in the state of Maharashtra. This Combined Cycle gas based Power Project was being developed by the Hiranandani Group of India, in four phases - Phase-I of 350MW; Phase-II, III, and IV of 700MW each. Phase-I consisting of 1unit of 350MW was currently under implementation. 74.22 hectares of land had been acquired against a requirement of 112.4 hectares. State level environmental clearance (SEAC) had been accorded, however Supreme Court had currently (April 2012) stayed against the clearance citing procedural lapses, since any power plant greater than 500MW capacity had to get the clearance directly from the central government. Also objections from stakeholders had not been addressed while granting the environmental clearance. Approval for water connectivity had also been obtained from Maharshtra Jeevan Pradhikaran department. HEGCPL had applied for allocation of natural gas from Ministry of Power. An agreement for supply of gas from BPCl had been entered into, and Gas Sales Agreement was expected to be signed by November 2010. HEGCPL had also been scouting for sourcing of R-LNG from International markets. Gas transmission agreement was being tied up with GAIL. In August 2011, HEGCPL had also applied to Powergrid for long term open access (LTOA),access for which had been granted for 379MW. Details of the PPA for the Phase-I (350MW) could not be ascertained at the time of collection of this information. EPC contract, had been awarded to Hyundai Engineering Limited. Siemens Aktiengesellschaft and Doosan Engineering were the equitment suppliers. The project cost for Phase-I (350MW) was estimated to be approximately USD 379.8mn (INR 17850mn @47 INR/USD). Financial close took place on 22nd July 2011 at a Debt/Equity ratio of 75/25. HEGPCL financed this project through an equity contribution of USD 94.9mn (INR 4462.5mn) and a 14-year term loan of USD 284.8mn (INR 13387.5mn). The term loan had a grace period of 6months and a repayment schedule of 44 quarterly instalments. The debt was arranged by State Bank of India. The other participating banks were Canara Bank(2000mn), Vijaya Bank(2000mn), Export-Import Bank of India(2000mn), Punjab National Bank(1000mn),State Bank of Patiala(750mn), State Bank of Bikaner & Jaipur(500mn). The construction started in September 2011 and was expected to be progressively commissioned by April 2014.In April 2012, the Supreme Court of India had ordered a stay on the continued construction of the project due to procedural lapses on gaining environmental clearances.