Nava Bharat Energy India Ltd (NBEIL)

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Nava Bharat Energy India Ltd (NBEIL) was set up to build and operate merchant power plants as the project sponsor expected that merchant power rates to be substantially higher than long term PPA for the next 5 years. Nava Bharat Energy India Ltd (NBEIL) was a subsidiary of Nava Bharat Ventures Ltd. In 2009, the company achieved financial closure for the 64 MW plant in Kharagprasad, Orissa. The cost of the plant was INR 2.3 billion (US$47.5 million). The primary fuel used for generation at this plant would be washery rejects and domestic coal. The plant became operational in December 2010. In 2010, the company achieved the financial closure of 300 MW coal fired power plants in Andhra Pradesh. One plant of 150 MW was to be located in Paloncha, District Khammam and the plant of 150 MW in Dharmavaram, District East Godavari. Both units used sub-critical technology. The project cost for the two units was estimated to be about Rs.13.86 billion (US$ 303 million). The project achieved financial closure in March 2010. Financing comprised Rs9.7bn 9-year term loan in debt and Rs4.16bn in equity with a debt/equity ratio of 70/30. The debt was arranged by IDBI.