Jas Infrastructure and Power Limited

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In October 2007, the Bihar Government (through BIhar State Electricity Board), signed a MoU with Jas Infrastructure and Power Limited (JIPL),a Special Purpose Vehicle (SPV) of Abhijeet Group(94.40% equity), for development of a 1320 MW (2x660 MW) coal fired based thermal power station at Siriya village in Banka district of Bihar.This MOU was subsequently amended in December 2008 increasing capacity to 2640 MW.The project would be executed in 2 phases of 1320MW each. The project was based on super-critical technology. The land required for the project was 785 acres out of which about 460 acres had already been acquired. Water requirement,estimated at 39.50 million m3/day, would be met from Chandan Dam on Khudar river in Bihar located at approximately 7km from plant site (Received approval for 85 million cubic meter). JIPL had received all major clearances like environment clearance,chimney clearance etc. JIPL had approval for evacuation of power by using Powergrid infrastructure (JIPL had applied for 4x660 MW capacity). JIPL was however responsible for any transmission infrastructure to connect the power project to the designated PGCIL substation. The coal requirement is estimated as 10.06 million TPA at 85% PLF.The primary fuel for the project was domestic coal and would be obtained from Mahuagarhi coal block (allotted in 50:50 Joint Venture with CESC - "Mahuagarhi Coal Company Private Limited" in December 2007).Mahuagarhi coal block was located at a distance of about 85kms from power project site and had an estimated total coal reserves of 220 MMT (110MT for each JV partner. JIPL had also applied for coal linkage for additional coal requirement. JIPL had awarded a fixed price EPC contract for the plant to Abhijeet Projects Limited (APRL) in December 2010. The power generated from the Phase-1 project of 1320MW was primarily expected to be sold to state owned utility company-BSEB. As per the MoU, Bihar State Electricity Board (BSEB) had the first right to claim to purchase / refusal of powercupto 25% of the maximum power proposed power plant on the basis of laws and regulations in force.cBSEB would intimate JIPL their willingness to avail or refusal of 25% of power and the modality for the power purchase agreement with delivery point subject to declaration of power purchase rate by JIPL following Government of India guidelines. BSEB would have no objection in the event JIPL supplied power directly to the bulk consumer in the state of Bihar on mutually agreed tariff and applicable laws and regulations of open access for intra state transmission systems of Bihar to be notified by BERC.JIPL had proposed to sale 70% of power on long term basis and remaining 30% power would be sold on merchant basis. The cost of the Phase I of the Project (1320MW) at the time of financial closure was estimated to be approximately US$ 1384.7mn (INR 74000mn @53.44 INR/USD). Financial closure took place on 24th March 2012 at a Debt/Equity ratio of 80/20. Financing comprised senior debt of US$ 1038.5mn (INR 55500mn), a subordinate debt of US$ 69.2mn (INR 3700mn) and sponsor equity of US$ 276.9mn (INR 14800mn) and a debt of USD 908.5mn (INR 42700mn). The debt,underwritten by Axis Bank,UCO and PNB had a door-to-door tenor of 14-year 9-months. The rate of interest was at an average of 11.5% linked to base rates for senior debt and 13.5% for subordinate debt. The loan would be repaid in 40 quarterly installments. The participating banks were Bank of India, Housing and Urban Development Corp,IIFCL,LIC of India,Oriental Bank of Commerce,PFC,Punjab National Bank,RECL,State Bank of Bikaner & Jaipur,UCO Bank. The construction for the Unit-I (660MW) and II (660MW) of the project had started and were expected to be commissioned by July 2014 and October 2014 respectively.