Ind-Barath Thermal Power Limited (IBTPL)

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Ind-Barath Thermal Power Limited (IBTPL) was set up to develop and operate a 300.0 MW coal base power project at Thoothukudi, Tamil Nadu. IBTPL was owned by Ind-Barath Power Infra Private Ltd. (99.96%). The first 150.0 MW unit of this power project was expected to be commissioned by March 2012, and that the power project to be fully commissioned by June 2012. The power plant would operate on merchant basis with a contract with state owned Power Trade Company. Pursuant to an agreement between PTC India and IBTPL dated July 22, 2008, as amended and assigned on December 11, 2009, IBTPL will sell 260.0 MW of power per month to PTC India at an average tariff rate of Rs. 4.10 per kWh, after commissioning of the IBTPL Power Project. If PTC India is able to sell power at a higher tariff than the base rate, PTC India will charge 10.0% of the difference between Rs. 4.10 per kWh and the actual rate, as well as their regular commission of Rs. 0.04 per kWh for the sale of power. This average tariff rate will remain valid for two years from the date of commissioning. Upon expiry of the two year period, the agreement provides that the tariff may be changed, subject to mutual negotiations. The agreement is valid for six years from the date of commissioning of the power project. Due to delays in project implementation as a result of protests of local political and environmental groups, we moved the project from its proposed location of Karwar, Karnataka to Thoothukudi, Tamil Nadu and renamed the project company. Total cost of the IBTPL Power Project was estimated to be Rs. 12,970.00 million (US$283.6 million). The project reached financial closure in June 2010 with a debt equity ratio of 77/23. As of April 30, 2010, the total equity investment made by our Company in IBTPL is Rs. 1,561.70 million, and the project company secured financing of Rs. 9,418.00 million of senior debt for the implementation of the IBTPL Power Project from a consortium of twelve lenders including, Punjab National Bank, Canara Bank, UCO Bank, Vijaya Bank, L&T Infrastructure Finance Company, State Bank of Mysore, State Bank of Travancore, Axis Bank Limited, Bank of India, Indian Bank, State Bank of Indore and Syndicate Bank. Before IBTPL also entered into two separate subordinate debt facilities as follows: On March 31, 2008, IBTPL entered into a Rs. 328.00 million term loan agreement for subordinate debt with a consortium of lenders, including Bank of India, Oriental Bank of Commerce, Indian Bank, Infrastructure Leasing and Financial Service Limited, UCO Bank, Indian Overseas Bank, Central Bank of India, Vijaya Bank, Bank of Maharashtra, Dena Bank, United Bank of India, Corporation Bank, Canara Bank and Syndicate Bank. This loan was amended on September 11, 2008, to reallocate the same principal between the consortium. As of April 30, 2010, Rs. 161.99 million in principal amount, which remains outstanding. On May 2, 2008, IBTPL entered into a Rs. 300.00 million subordinate debt agreements with L&T Infrastructure Finance Company and State Bank of Mysore. Under the terms of the loan agreement, IBTPL could draw down up to Rs. 300.00 million. As of April 30, 2010, Rs. 148.01 million in principal amount remains outstanding. http://www.ilfsifin.com/pdf/Ind-Barath%20Thermal%20Power%20Limited%20.pdf