Jaihind Chadiyana Solar Plant

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In 2010, Jaihind Projects Limted signed an MoU with Gujarat Energy Development Agency (GEDA) for setting up a 5-mw photovoltaic solar project at Chadiyana Village in Patan District of Gujarat, under the Gujarat Solar Policy 2010. The project would consist of Poly Crystalline silicon modules (with Thin film technology). The land and requisite approvals for the project were in place. The output from the project would be fed to the North-East-West-North-East (NEWNE) grid of India. Power evacuation was planned through a 66 KV line, which, as per the state policy, was the responsibility of Gujarat Energy Transmission Corporation Limited (GETCO). The transmission system was however not yet implemented and hence the sale of power would be delayed to that extent. Jaihind Projects had entered into a 25-year Power Purchase Agreement with the state utility Gujarat Urja Vikas Nigam Limited (GUVNL) in December 2010, which would be effected at the time of commissioning of the project. The APPC (Average Power Purchase Cost) as per the Gujarat Solar Policy 2010, was US$ 0.33/Unit (INR 15 per unit @ 45INR/USD) for the first 12 years, and US$ 0.11/Unit (INR 5 per unit @45 INR/USD) from 13th year to 25th year. The total capacity of 15MW was eligible for carbon credits. Proceeds of carbon credit were to be shared as follows: (a) 100% by SBEGOPL in the first year after the date of commercial operation of the generating station/ transmission system;(b) in the 2nd year the share of GUVNL would be 10% which would be progressively increased by 10% every year up to 50% whereafter the proceeds would be shared in equal proportion, by Jaihind Projects and GUVNL.Transmission and/or wheeling charges would be paid by Jaihind Projects. Financial closure took place in November 2011.The total project cost was US$ 16.6mn (INR 783mn @47 INR/USD).The Debt/Equity ratio was 72/28. Financing comprised sponsor equity of US$ 4.7mn (INR 220mn) and an debt of US$ 11mn(INR 563mn @51.18 INR/USD). Axis Bank arranged for the US$ 11 million, 9-year external commercial borrowing (ECB).The ECB was to be repaid in 16 half year instalments starting from April 2013. The Asian Development Bank (ADB) also provided a Partial Credit Guarante (PCG) for the project. Construction was expected to start in October 2010 and commercial operation was expected to start in April 2011. The plant was finally commissioned in March 2012.