Nigrie Thermal Project

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The Nigrie Thermal Project was initially a 1000 MW coal based thermal power project located in the Sidhi district in the state of Madhya Pradesh. But then its capacity was expanded to 1320 MW 660x2)super critical technology boiler, pit head based Thermal Power Plant at Dist Sidhi in Madhya Pradesh. The project was being set up by Jaiprakash Power Ventures Limited (JPVL), a special purpose vehicle established by Jaiprakash Associates Limited (JAL) to execute the project. JAL was part of the Jaypee Group. JPVL had signed an agreement with the Government of Madhya Pradesh (GoMP) on mutually agreed terms to develop the project. As part of these terms, JPVL was required to provide 7.5% of the power from this project to GoMP at concessional rate equal to variable cost. GoMP also had a right of first refusal to purchase up to 30% of the total power produced by JPVL. JPVL planned to sell 37.5% of the plant's capacity to GoMP and 50% on a merchant basis. The definitive offtake arrangements were not available at the time of collection of this information. The project company signed the equipment supply contract Larsen & Toubro (L&T) in September 2009. The project was expected to cost about INR 60 billion (US$1240 million). Although the project company initially obtained financing for the project on December 27, 2007 (with ICICI Bank being the lead arranger for the USD 875 million loan), actual financial closure was achieved on March 2009, according the sponsor filing. The debt equity ratio was 70/30. Financing comprised Rs42 billion debt and Rs18 billion in equity. The debt was arranged by ICICI. The project was expected to be commissioned in 2012. On 27th March 2014, additional financing of US$ 269.7mn (INR 16450mn @61 INR/USD) 11-year term loan was arranged by ICICI bank to take care of cost overruns in the project. Punjab National Bank, Central Bank of India, IDBI Bank, Canara Bank, Syndicate Bank, State Bank of Hyderabad, Bank of Baroda, Oriental Bank of Commerce, State Bank of Patiala, Corporation Bank, State Bank of Bikaner & Jaipur, Indian Overseas Bank, Bank of Maharashtra were the lenders. The project is expected to cost approximately USD 1250 million. JPVL expects to finance this project through an equity contribution of USD 375 million and a loan of USD 875 million. JPVL received a letter of intent from ICICI Bank dated December 26, 2007 providing for a term loan of USD 875 million. JPVL accepted the same vide a resolution of our Finance Committee dated December 27, 2007.