Jaiprakash Hydropower Ltd.

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Jaiprakash Hydropower Ltd (JHPL), subsidiary of Jaiprakash Associates Limited (JAL). JHPL, developed the second stage of a 300-MW, approximately $311.3 million hydroelectric power plant in Baspa, Himachal Pradesh State. Financing was obtained in part through the public sale of convertible debentures worth $89.2 million in August 1994. A total of $124.2 million has also been obtained from Indian financial institutions. In September 2001, the Jaikprakash group sought and gained additional funding of approximately $36 million for the Baspa project from a financial consortium led by the Industrial Credit & Investment Corp. of India (ICICI). The project was experiencing a cost overrun of about $58 million due to delays in the project caused by the rupee devaluation and river flooding. In February 2002, JAL offered itself as collateral security for the additional loans worth in the area of $35.5 million. The Central Bank of India agreed to an additional loan of $10.5 million and the State Banks of Patiala and Indore each extended a loan of just over $5 million. In March 2005, JAL raised US$ 130 million by selling 36.7 % stake in JHPL to the general public through an initial public offering (IPO). After the IPO, JAL owned 67.3% in JHPL. JHPL signed a 40 year power purchase agreement (PPA) with Himachal Pradesh State Electricity Board (HPSEB) in 1996. Technical and economic clearances from the Central Electricity Authority (CEA) were invalid on account of the change ownership structure without the proper notification. Jaiprakash Hydropower Ltd was the primary contractor and operator for the project. International Design Engineering Associates (IDEA) was as the technical consultant and is involved in project design. Bharat Heavy Electricals (BHEL), the equipment supplier, was likely to have aided in lease financing and have taken an equity stake in the venture. The project began commercial operations in 2003. None None