Inland Power Limited

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In August 2009, the Jharkhand Government, signed a MoU with Inland Power Limited (IPL) for development of a 126 MW (2X63) coal-fired thermal power plant located at Tonagatu, Gola in Ramgarh district in the state of Jharkhand. The project would use CBFC (Fluidized Bed Combustion) technology and will use coal, coal washery rejects and dolochar as fuel. IPL had applied for coal linkage corresponding to 63MW from Central Coalfields Limited, but approval was pending till July 2011 (as per Feb '12 document, this linkage may have been given). The total land requirement for the project was 100 acres. Water requirement of 19400 m3/day would be met from Bhairvi river and Senegarha nallah. IPL had requested for a 400kV connectivity with the CTU (central transmission) system,however (in Feb'12 meeting) it was noted that the land & coal linkage were available for 2x63MW project only which would be commissioned in 2013-14. It was decided that it would not be desirable to plan 400kV connection for such a small capacity (126MW). It was suggested that the project may seek connectivity through 132kV (high capacity)/220kV lines to transmission system of DVC/Jharkhand at Gola substation, 8kms away. The power generated from the 63MW power plant (1st unit) was expected to be sold to entities including state electricity boards, state owned utility companies, power trading companies. IPL has entered into a short-term (5 years) PPA with Lanco Power Trading Company for 32MW. The balance power was expected to be sold on merchant basis. The project cost for the first unit of 63MW was estimated to be approximately USD 68million (INR 3198mn @47 INR/USD). Financial close took place on 12th August 2011 at a Debt/Equity ratio of 71/29. IPL financed this project thro for through sponsor equity of USD 19.6 million (INR 924mn) and a debt of USD 48.4 million (INR 2274mn). The debt, arranged by SBI Capital, had a tenor of 12 years and was priced at a margin of 450bp over the SBI base rate. Repayment was in 38 quarterly installments following a grace period of 2.5 years (which included the construction period).SBI, with an INR 1000mn commitment, was the lead bank and facility agent. The other members in the syndicate were Bank of Baroda (520mn),State Bank of Bikaner & Jaipur(420mn), State Bank of Patiala(334mn). The project was expected to be progressively commissioned with the first unit of 63MW expected to be commissioned in financial year 2013-14 in financial year 2015.