Ind Barath Power (Madras) Limited

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In February 2008, the Tamil Nadu Government, signed a letter of facilitation (MoU) with Ind Barath Power (Madras) Limited (IBPML), a SPV of Ind Barath Power Infra Limited (IBPIL), for development of 1320 MW (2x660) power project in Thoothukudi, Tamil Nadu. The project was planned to be executed in two phases, each of 660MW.IBPML was currently developing the 1st phase of 660MW. The proposed plant would comprise of one supercritical once through assisted circulation and pulverised coal fired steam generators and auxiliaries and one 660 MW steam turbine generators & auxiliaries.The total land required for both phases of the project is 600 acres of which Phase-I requirement is 460 acres.Necessary acquisition process had been initiated with Government. Water requirement was estimated at 4800 cubic meters per day, which was expected to be met through sea water drawn from the Bay of Bengal, through an in-principle approval issued by the Tamil Nadu Maritime Board on June 8, 2009..IBPML had received all major clearances like environment clearance.IBPML had signed a long term open access agreement with Power Grid Corporation of India Limited in February 2010, under which IBPML would receive open access for up to 900MW of electricity until March 2037 and power would be evacuated using a 400 KV transmission line to the Tuticorin Pooling Power Grid Corporation substation.The company had awarded EPC contracts for Boiler-Turbine-Generator (BTG) to Harbin Turbine Company Limited, China. The primary fuel for the project was domestic coal, and rest would be imported coal. The project would require 3.49 million tonnes per annum of coal at a plant load factor of 100% and assumed gross calorific value of 3360 kcal/kg. IMPML had made the necessary applications for domestic coal linkages. On January 29, 2010 in response to the application,the Standing Linkage Committee for Power facilitated the issuance of a letter of assurance by Coal India Limited for the provision of coal for this power project. On April 29, 2010, Coal India Limited issued a letter requiring IBPML to provide commitment guarantees for purpose of issuance of letter of assurance. IBPML had furnished the required guarantees as of May 6, 2010. The domestic coal allocation was estimated to meet up to 70% of the coal requirements for the project and the balance 30% would be imported. IBPML had further entered into a long term coal supply agreement with IndBarath's Indonesian Subsidiary PT Indbharath Energy (PTIE-had the right to operate four mines located in Indonesia) dated April 15,2010. Under the agreement, PTIE had agreed to sell and deliver to IBPML annually 750,000 metric tonnes (+/- 10%) with reference to gross calorific value of 5400 kcal/kg at a price of USD 56 per metric tonne of coal sold for a period of 5 years from the date of first delivery of coal under the agreement. If IBPML’s actual coal requirement is below 675,000 metric tonnes, IBPML was required to pay the difference in cost between actual coal purchased and 675,000 metric tonnes. However, IBPML was allowed to take the excess coal that it had paid for, free of cost, in any subsequent delivery year of the contract.There would also be penalties or premiums based on any deviation from the calorific value requirement.The agreement might be extended for a further period of 5 years each time on a mutually agreeable basis. The power generated from the project of 660MW was expected to be sold to entities including state electricity boards, state owned utility companies, power trading companies. At the time of collection of this information,no arrangement for offtake could be confirmed but most likely IBPML would sell to the grid at CERC (Central Electricity Regulatory Commission) determined tariff or on merchant basis. The cost of the Project was estimated to be approximately USD 798.9 million (INR 35950mn @45 INR/USD). Financial close took place on 25th March 2011 (although the sanction for underwriting had been provi