Meenakshi Energy Private Limited

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In July 2009, the 270MW Phase-I of Meenakshi thermal power plant developed by Meenakshi Energy Pvt Ltd.(MEPL) reached financial closure under a BOO format. The project was located at Thamminapatnam village near Krishnapatnam in Nellore District of Andhra Pradesh. The 540MW project was being set up in two phases, each having a capacity of 2x135 mw. The project was expected to be run on a mix of imported and Indian coal. A consoritum of Meenakshi Infrastructure Pvt Ltd (51%), PTC India Financial Service Ltd (26%) and Advaita Partners Ltd (23%)had set up a special purpose vehicle, Meenakshi Energy Pvt Ltd. (MEPL), for the implementation of the plant. The company was granted the project through MOU route on a negotiated basis by the State utility. PTC India was to off-take the power generated for 25 years. PTC India was the fuel supplier as well. A large portion of the off-take risk was expected to be taken care of through a power tolling agreement (PTA) with PTC (signed on 14-08-2008) that ensured recovery of a fixed conversion charge under a 'Take or Pay' mechanism for about 70% of the net generation. PTA was also expected to ensure supply of 'free coal' by PTC, to the extent of 70% of total requirement. There was no firm arrangements for sale of 30% of the power output and the corresponding fuel supply arrangements. MEPL was expected to operate on a merchant basis for this residual 30% output. The estimated cost of the Phase-I of the project (270MW) was USD 286.1 million (INR 13850 million at 48.41 INR/USD). Financial close for the Phase-I of the project took place on 9 Jul 2009. Financing comprised a USD 207.6 million (INR 10050 mn) 14-year 6-month term loan and USD 69.2 million (INR 3350 mn) Equity. State Bank of India was the lead arranger. The estimate cost of the Phase II of the project (207 MW) was US$282 million (IND 12934 million at 45.73 IND/USD). Financial closure of phase II was achieved in October 2010. The financing of phase II included also refinancing of phase I. The total financing package included US$682.3 million (IND 31.2 billion at 45.73 IND/USD), and comprised IND 23.4 billion debt and IND7.8 billion equity. Debt was split among eight term loans arranged by IDBI and SBI. All trances had a tenor of 14 year 9 month except for the first tranche (15 year 3 month). Construction for Phase-I started on August 2009 and commissioning was expected by May 2012. Coal Supply Agreement was entered with Indo Setubara Limited (Indonesia) in August 2008, for supply of coal.Fuel linkage from Mahanadi Coal Feilds (MCL) was received through Letter of Assurance (LOA) issued by MCL. Environmental Clearance had been achieved for 600 MW. Phase - I (2x135 MW) EPC Contract (a fixed-price, fixed-time EPC contract) along with civil works had been awarded to M/s Thermax Ltd. The project had acquired the entire land required for the project. http://meenakshigroup.net/html/power_projects.html

Energy

World Bank Group

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Commercial, Power Generation (CCGT), Road, Geothermal, Power Transmission, Government, Automotive