Jhajjar KT Transco Pvt Ltd

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Jhajjar KT Transco Pvt Ltd was awarded a 25 year BOT contract for 3 transmission lines of 400kV, 100km each and 2 (two) substations in the state of Haryana, India. The agreement was to evacuate power from the upcoming 1320 mw Mahatma Gandhi Thermal Power Project or Jhajjar Power Limited in Jhajjar. The BOT contract was signed in May 2010. Jhajjar KT Transco Pvt Ltd was the SPV created to develop the projects. The project sponsors were Kalpataru Power Transmission Ltd. (51%) and Techno Electric and Eng. Co. Ltd. (49%). The sponsor won the project by quoting lowest one time grant of Rs 93.90 crore over and above the Unitary Charge of Rs 4.50 crore per month payable after commissioning of the substations scheduled for December, 2011. The project is the first-ever transmission project in the country to get viability gap funding (VGF) support from the Central Government and also the first ever project in Haryana for which VGF has been sanctioned under the PPP mode. The project was awarded by state utility Haryana Vidyut Prasaran Nigam Ltd. The initial concession period was set for 25 years with options of extension for another 10 years. The SPV would receive terminal value equivalent to 20 months revenue i.e. approx. Rs. 100 crore at the end of 25th year of concession period in case the concession period does not get extended to 35 years. The project cost was estimated to be Rs 4442 million (US$97.1 million). The project reached financial closure on 23 Nov 2010. Financing comprises Rs2.76bn and Rs1.682bn equity. Debt comprises a Rs2.76bn 12-year term loan arranged by IDFC. Construction started in Nov 2010 and was to be completed over a period of 14 months from the date of financial closure were (by May 2012). The project has to be completed over a period of 14 months from the date of financial closure. The SPV has also obtained transmission license from Haryana Electricity Regulatory Commission (HERC) to construct and operate this line for initial concession period of 25 years with options of extension for another 10 years.