Kiran Charanka Solar Plant

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In December 2010, Kiran Energy Solar Power Private Limited (KESPPL), signed an MoU with Gujarat Energy Development Agency (GEDA) for setting up a 20MW photovoltaic solar power project in Patan District of Gujarat, under the Gujarat Solar Policy 2010. The plant would use thin film technology. The output from the project would be fed to the North-East-West-North-East (NEWNE) grid of India. Power evacuation was planned through 66 KV line, which, as per the state policy, was the responsibility of Gujarat Energy Transmission Corporation Limited (GETCO). The EPC contract was awarded to L&T. KESPPL 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$ 0.32/Unit (INR 15 per unit @ 47INR/USD) for the first 12 years, and US$ 0.11/Unit (INR 5 per unit @47 INR/USD) from 13th year to 25th year. The total capacity of 20 MW was eligible for carbon credits. Proceeds of carbon credit were to be shared as follows: (a) 100% by project developer in the first year after the date of commercial operation of the generating station/ transmission system; (b) 2nd year – share of beneficiaries (DISCOM-GUVNL) @ 10% to progressively increase by 10% every year up to 50% and whereafter the proceeds would be shared in equal proportion, by KESPPL and the GUVNL.Transmission and/or wheeling charges would be paid by KESPPL. Financial closure took place in September 2011.The total project cost was US$ 61.2mn (INR 2874.8mn @47 INR/USD).The debt equity ratio for the project was 70/30. Financing comprised of Debt of US$ 42.8mn (INR 2010mn) and sponsor equity of US$ 18.4mn (INR864.8m). The 12-year 6-months term loan had a grace period of 6months and a repayment schedule of 44 quarterly instalments. The loan was arranged by SBI capital (INR 1000mn) and IDFC Ltd (INR 1010mn).The Asian Development Bank (ADB) also provided a Partial Credit Guarante (PCG) for the project. Construction started in April 2011 and commissioning is expected in January 2012.