Mundra Thermal Power Project

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The Mundra thermal Power Project was a 4620 MW imported coal based thermal power project located at Mundra in Kutch district in the state of Gujarat. The project was being implemented in four phases. Phase I had a capacity of 660 MW (2x 330 MW). Phase II had a capacity of 660 MW (2x 330 MW) and Phase III had a capacity of 1320 MW (2 x 660 MW). The project was being developed by Adani Power Ltd. (APL), a Adani Group company. The Phase-IV of 1980 MW (3 x 660 MW) was added in January 2009 as part of the expansion of the existing project. The project was awarded to APL by the Govt. of Gujarat through the Gujarat Urja Vikas Nigam Limited (GUVNL) which was appointed as the agency for conducting the international competitive bidding process for the award of the project. APL had signed two Power Purchase Agreements with GUVNL to supply 2,000 MW power per annum for 25 years. APL had also entered into an agreement with Adani Energy Limited for selling surplus power from Phase III on merchant basis. Various other PPAs have been negotiated with Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL), Dakshin Haryana Bijli Vitran Nigam Limited ( DHBVNL), Maharashtra State Electricity Distribution Company Limited (MSEDCL), Jaipur Vidyut Vitran Nigam Ltd (JVVNL), Ajmer Vidyut Vitran Nigam Ltd (AVVNL), Jodhpur Vidyut Vitran Nigam Ltd (JVVNL) for a total contracted capacity of 6144 MW from its various power projects (apart from the Mundra Project). The Phase I and II of the project were estimated to cost US $ 401 million and US $ 385 million respectively and achieved financial closure in September 2006 and July 2007 respectively. ICICI Bank was the lead arranger for the Phase-I and Phase-II of the project. Phase III of the project was expected to cost US $ 1332 million. Financing was funded on a 76/24 debt-to-equity basis. The $1,076.5m debt package was arranged by a mix of rupee borrowings and external commercial borrowings (ECB) dominated in USD. The ECB portion was underwritten by Standard Chartered Bank while the Rupee tranche was lead arranged by State Bank of India. Financial close was achieved on 27 Mar 2008. Senior syndication was launched on 31 Mar 2009 for the ECB portion. Phase-IV was expected to cost US $1850.9 million. Financing comprised US $1480.7 million (INR 71680mn) debt and US $370.2 million (INR 17920mn) equity. Debt was split between a INR 67200mn 13.25-year term loan and a INR 4480mn 13.25-year term loan. State Bank of India was the lead arranger. Financial close took place on 24 Jun 2009. It was expected that Phases I & II of the project would be fully commissioned by October 2009 and Phase III & IV of the project would be fully commissioned by June 2011. As on information available in September 2009, the first unit (330MW) of the Phase-I has been commissioned and synchronised.