Maruti Clean Coal and Power Limited

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On 1st August 2009, the Chattisgarh Government, signed an Implementation Agreement (MoU signed on 26 September 2006) with Maruti Clean Coal and Power Limited (MCCPL), a joint venture company of ACB India Limited (45%), Hira Ferro Alloys Limited (Hira subsequently had sold its 13% stake in April 2014),Gupta Global Resources Private Limited (10%), Spin Packaging Limited (10%), Kolahai Infotech Private Limited (10%), for development of a 300 MW (2x150 MW) coal fired thermal power station in Village Bandhakar in Korba district of Chhattisgarh. The project was based on sub critical technology.The 449 acres of land required for the project had been acquired.Clearance for Water requirement,estimated at 3,09,000 m3/day had been obtained in May 2008. Environmental clearance was received on 12 May 2010. All statutory approvals were in place.Open access had been granted from Sipat Pooling Station from PGCIL (Powergrid) and Bulk Power Transmission Agreement signed on 24th February 2010. The primary fuel for the project was domestic coal (40% of the requirement) and washery rejects (60% of the requirement). MCCPL had a coal beneficiation plant with a capacity of 10 million TPA near Village Ratija, Korba in the proximity to the Dipka-Gevra coalfields of SECL. Coal would be transported from the beneficiation plant of MCCPL to the project site by pipe conveyor and alternatively by trucks. A part of the coal was also required from the SECL coalfields and that coal would be transported to the site by road. Letter of assurance had been received from Ministry of Coal, however FSA was yet to be signed. The company had awarded EPC contracts to IOT Infrastructure & Services Limited in 7th June 2011. The power generated from the project of 300 MW was primarily expected to be sold through a mix of long term power purchase agreements (PPA) and short term sales (merchant). Long term PPA for sale of 105 MW Power was already signed with Government of Chhattisgarh (state power utility) and for sale of 195 MW signed with PTC on minimum assured price. The project attained financial closure on 6th September 2013 at a debt/equity ratio of 70/30. The estimated cost of the Project (300MW) at the time of financial closure was US$ 248.5mn (INR 14560mn @58.6 INR/USD).Financing comprised a 12-year 6-months term loan of US$ 173.9mn (INR 10190mn) and sponsor equity of US$ 74.6mn (INR4370mn). The term loan had a repayment schedule of 40 quarterly installments. Axis Bank underwrote the entire debt on the initial date of signing on 3 Aug 2011. Later ICICI Bank Limited had entered the syndication on 3 May 2013, while Rural Electrification Corporation Limited (RECL) entered the syndication pursuant to the signing of the Amended and Restated Facility Agreement on 6 Sep, 2013.The participating banks were Axis Bank, Bank of Maharashtra, ICICI,RECL. The construction for the project were in progress and were expected to be commissioned by March 2014.