MI Mysolar24 Private Limited

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In 2009, Welspun Energy Limited (WEL) along with private investors,signed an MoU with Gujarat Energy Development Agency (GEDA) for setting up a 15-MW photovoltaic solar project at Fatehpur Village, Surendranagar district, in the state of Gujarat, under the Gujarat Solar Policy 2009. The output from the project would be fed to the North-East-West-North-East (NEWNE) grid of India. The project has deployed fixed tilt poly-crystalline modules manufactured by Trina Solar Limited, a China based solar module supplier and Inverters have been sourced from Bonfiglioli Riduttori S.P.A., Italy.Power evacuation was planned through a 66KV line to substation, which, as per the state policy, was the responsibility of Gujarat Energy Transmission Corporation Limited (GETCO). WEL (49%) and other private partners (51%) established MI Mysolar24 Private Limited (MMS), special purpose vehicle, to execute the project. MMS was initially owned by Mr. Mukesh Kumar Agarwal & Mrs Yogita Mohan and was awarded with project. Later on, WEL took 49% stake in the same. MMS 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 2009, was US$ 0.187/Unit (INR 9.98 per unit @53.4INR/USD) for the first 12 years, and US$ 0.13/Unit (INR 7 per unit) 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 MMS 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 MMS and GUVNL. Transmission and/or wheeling charges would be paid by MMS. The project had been executed through a turnkey engineering, procurement and construction contract with WEL. O&M was being carried-out by an in house team. The project was executed at a cost of US$ 25mn (INR 1333.3mn @53.44 INR/USD).The debt equity ratio for the project was 75/25. Financing comprised of Debt of US$ 18.7mn (INR 1000mn) and sponsor equity of US$ 6.2mn (INR 333.3mn). The 12-year 2-months term loan had a ballooning amortization profile with 162 monthly installments commencing in May 2013.The loan was priced at Base Rate(10%) and a spread of 110 basis points per annum (floating). Participating banks/FIs were L&T Infrastructure Finance Company, Vijaya Bank and India Infrastructure Finance Company. The plant was commissioned and achieved Commercial Operation Date (COD) in November 2012 (for 6.92 MW) and December 2012 (for balance 8.07 MW).