Nagarjuna Hydro Energy Private Limited

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In January 2002, Nagarjuna Hydro Energy Private Limited (NHEPL), a subsidiary of KVK Energy, signed an agreement with Karnataka Government for setting up a 2x7.5 MW run-of the river type hydro power project in Balekallu Hole, a tributary of river Kemp Hole in Hassan district of Karnataka. The project utilized the hydrological resource of the catchments area of Balekallu Hole, a tributary to the west flowing river Yettina Hole, also called Kemp Hole and Gundia Hole which was in its downward reaches. Kemp hole was a turn tributary to theriver Kumardhara, which joined the river Nethravathy near Uppinangadi. The project used 2 numbers of Horizontal Francis type turbines (manufactured by Andritz Hydro Private Limited) each of rated capacity of 7931kW. The project was expected to generate 57.27 MU in a 50% dependable year. The electricity that was generated was exported to the Karnataka Power Transmission Corporation Limited (KPTCL) grid via Sakleshpura substation located at a distance of 24 km.The operation and maintenance (O&M) of the Hydel Project was done in-house by NHEPL. Nagarjuna Hydro Energy Private Limited had signed a PPA for 10 years with Chamundeshwari Electricity Supply Corporation (CESC) at a base tariff of US$ 0.063 (INR 2.9/kWh @45.7 INR/USD) in the first year with a fixed annual escalation of 2% per annum of US$ 0.001 (INR 0.058/kwh) for the next 9-years and renewable for next 10 years.The project was registered with CDM Executive Board (UNFCC) on May 2011 for the sale of CERs which provided an additional stream of revenues. Nagarjuna Hydro Energy Private Limited (NHEPL) had got the project on an allotment basis from the Government of Karnataka on build, own, operate, and transfer basis under the Kadamane Mini Hydel Scheme-II. The ownership of the unit vests with NHEPL for a period of 30 years. Details of timeline for financial closure couldn't be ascertained. However, based on loan documentation, the project cost was estimated at US$ 21.0mn (INR 960mn @45.7 INR/USD) including cost overruns on account of delays in project commissioning. Financing comprised of a 7-year term loan of US$ 13.6mn (INR 620mn) and sponsor equity of US$ 7.4mn (INR 340mn).The debt equity ratio was 64/36. The participating banks were L&T Infrastructure Finance Ltd, and Indian Renewable Energy Development Agency Ltd. The construction activities of the project were started in the month of November 2007 and all the project works were completed in the month of April 2010. The Unit-I (7.5MW) of the project was commissioned on 3rd May 2010 and Unit-II (7.5MW) was commissioned on 9th July 2010.