Mytrah Energy Limited- 100.3MW Savalsang Windfarm

Active

Prospective

Mytrah Energy Limited entered into an agreement with Karnataka Government, to develop 100.3 4MW wind power project at Savalsang in the state of Karnataka. The wind farm would involve the building of Gamesa wind turbines.The electricity generated from the project would be evacuated by Southern grid of India. Gamesa would construct, commission, operate and maintain the project at an all-inclusive price. Mytrah Vayu (Krishna) Private Limited (MVKPL) was a special purpose company, formed to construct and operate a 137.7MW wind power project in Burgula (37.4MW) in Andhra Pradesh and Savalsung (100.3MW) in Karnataka. Mytrah Vayu (Krishna) Private Limited was expected to sell the power to Karnataka state electricity distribution company. The APPC (Average Power Purchase Cost) 10-year base feed-in tariff as per KERC (Karnataka State Regulator) tariff order, was US$ 0.078/Unit (INR 4.20 per unit @ 53.44 INR/USD). The transmission charges would be paid by Mytrah to the state transmission utility. Financing was closed for 2 projects - Mytrah 37.4MW Burgula Windfarm and Mytrah 100.3MW Savalsung Windfarm on 26th September 2013. Project costs for individual projects were not knowm. By deduction based on USD/MW, the estimated project cost of Savalsang Windfarm was US$ 112.8mn (INR 6611.9mn @58.6 INR/USD). Financing comprised of a 14-year 6-months term loan of US$ 72.6mn (INR 4252.7mn) and sponsor equity of US$ 40.2mn (INR 2359.2mn). The Debt Equity ratio was 64/36. The term loan had a grace period of 6-months and repayment schedule of 53 quarterly installments. SBI capital was the lead arranger and the participating banks were Central Bank of India, Bank of Baroda, Canara Bank, State Bank of Travancore, Vijaya Bank. The project was under construction and was expected to be commissioned by September 2013. The original commercial operations date (COD: 30 September 2013) was postponed to 31 March 2014 due to delays in obtaining government approvals and related clearances. The management expected to commission 50 out of 118 WTGs in Savalsung by 31 January 2014. The remaining land for 20 WTGs in Savalsung was under advanced stages of acquisition. While there were no cost overruns at this time, the project sponsor Mytrah Energy had provided an undertaking to meet cost overruns. The project had achieved 70% physical completion as on December 2013.

Energy

World Bank Group

Project

Wind, Raw Materials, Power Generation (CCGT), Government, Power Transmission, Commercial