Jharkhand thermal Power Plant Phase - I

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In 2007, the Jamshedpur State Electricity Board (JSEB) and PTC India Limited, the state-owned power trading company, signed a 25 year contract with India’s Adhunik Group for development and construction of 1170 MW (5 units of 135 MW each) coal-based thermal power plant in the state of Jharkhand in India. The project was expected to be implemented in two phases, Phase I comprises 270 MW (2 x 135 MW) and Phase II comprises 900 MW (3 x 300 MW). In 2008 construction for Phase I started. The consortium established Adhunik Power and Natural Resources Pvt. Ltd. (APNRL), a special purpose vehicle, to implement the project. IDFC Project Equity Fund acquired a stake in the proejct company in December 2009. SBI Macquarie Infrastructure Fund acquired 12.5% of the project company in August 2010. The consortium bagged the tender on a negotiated basis. Jamshedpur State Electricity Board (JSEB) has entered into a 25-year power purchase agreement with the Adhunik Power and Natural Resources for supplying power form the project. Phase I of the project (270 MW), whose cost was estimated at approximately USD 296 million, achieved financial closure in July 2008 with a debt equity ratio of 75:25. APNRL financed this project through an equity contribution of USD 74 million and a loan of USD 222 million. The project was financed through a 14 year long term loan. APNRL appointed SBI Capital as the lead arranger of funds. The pricing of the loan was fixed at 11.50% pa during construction and Benchmark Prime Lending rate (SBAR) minus 75 bps (basis points) during operation. The repayment would be in 40 quarterly payments. Phase II of the project (270MW) had an estimated cost of INR 13.87 billion (US$303 million). The second phase reached financial closure in March 2003. Financing comprised INR10.4bn 14-years term loan in debt and Rs3.47bn in equity. The debt was arranged by SBI. Construction of phase I started on Jul 2008 and commissioning was expected on July 2011. Both phases were expected to be operational by 2012. APNRL had signed a MoU with the Jharkhand government for the 1,080 MW project. In the first phase, 540 MW of generation capacity has been planned out of which the first unit of 270MW was commissioned in October 2012. The second unit of 270 MW was expected to be commissioned by last quarter of FY'13. Additional financing of USD 61.mn (INR 3575.5 mn @58.6 USD/INR) was completed in 11th December 2013 to support additional cost overrun of phase I (2x270MW)of the 1080 MW coal based thermal power project. Financing comprised of INR 2500mn term loan from IFCI (closed on 3rd September 2013) and a INR 1075.5mn term loan provided by SBI (closed on 11th Dec 2013).