Lanco Chandiyana Solar Plant

Active

In 2010, Lanco Solar Private Limited, a Lanco Infratech Limited subsidiary, signed an MoU with Gujarat Energy Development Agency (GEDA) for setting up a 5-mw photovoltaic solar project at Chandiyana Village in Patan District of Gujarat, under the Gujarat Solar Policy 2010. The project would consist of Poly Crystalline silicon modules (with Thin film technology) of 20653 numbers of 230Wp – poly crystalline & 2451 numbers of 102Wp - Thin film module type. The entire 30acres land and requisite approvals for the project were in place. The output from the project would be fed to the North-East-West-North-East (NEWNE) grid of India. Power evacuation was planned through a 66 KV line, which, as per the state policy, was the responsibility of Gujarat Energy Transmission Corporation Limited (GETCO). Lanco Solar had entered into a 25-year Power Purchase Agreement with the state utility Gujarat Urja Vikas Nigam Limited (GUVNL), 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$ 0.33/Unit (INR 15 per unit @ 45INR/USD) for the first 12 years, and US$ 0.11/Unit (INR 5 per unit @45 INR/USD) from 13th year to 25th year. The total capacity of 15MW was eligible for carbon credits. Proceeds of carbon credit were to be shared as follows: (a) 100% by SBEGOPL in the first year after the date of commercial operation of the generating station/ transmission system;(b) in the 2nd year the share of GUVNL would be 10% which would be progressively increased by 10% every year up to 50% whereafter the proceeds would be shared in equal proportion, by Lanco Solar and GUVNL.Transmission and/or wheeling charges would be paid by Lanco Solar. Financial closure took place in November 2011.The total project cost was US$ 17mn (INR 800mn @47 INR/USD).The debt equity ratio for the project was 75/25. Financing comprised of Debt of US$ 12.8mn (INR 600mn) and sponsor equity of US$ 4.2mn (INR 200mn). The 14year term loan had a repayment schedule of 55 quarterly installments. The debt was solely arranged by Yes Bank.The Asian Development Bank (ADB) also provided a Partial Credit Guarante (PCG) for the project. Construction was expected to start in October 2010 and commercial operation was expected to start in April 2011.As per news articles, the plant may have been commissioned in May 2012.