Om Power Neogal HPP

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In July 1998 (extension of MOU was done on March 9,2007) Om Power Company Limited signed an Implmentation Agreement with Himachal Pradesh Government for setting up a 15MW run-of the river type hydro power project proposed on Neogal Khad, a tributary of river Beas in Kangra District of Himachal Pradesh.Installed capacity of the project was 15MW and annual expected gross energy generation was 87670 MWh and net energy generation was 82848 MWh after deducting 5.5% towards auxiliary consumption (0.5%), transformation losses (0.5%) and transmission losses (4.5%).The project would use 2 numbers of Horizontal Pelton type turbines each of rated capacity of 7.5MW. The electricity produced at 11 kV will be stepped upto 33 kV and evacuated through 12 KM long 33 kV transmission line to HPSEB (Himachal Pradesh State Electricity Board) sub-station at Dehan.Pioneer Builders was the EPC contractor and Boving Fouress was the equipment supplier. Himachal Pradesh State Electricity Board (HPSEB) had signed a power purchase agreement (PPA) with Om Power. The details of PPA could not be ascertained at the time of collection of this information. As per the HPERC (state regulator) approved PPA, HPSEB would purchase electricity at the rate of US$ 0.05/Unit (INR 2.25/unit @45INR/USD) from the date of commissioning.Out of the expected net energy generation, 12% of the energy generated was to be provided at free of cost to Himachal Government.Om Power had represented its case for carbon credits for the project, and UNFCC was currently validating the project.The financial benefits of the revenue obtained by selling of the CERs was expected to improve the Equity IRR of the project. The estimated cost of the project was USD 9.2 million (INR 412.2 mn @45 INR/USD), as reported by Sanjib. This implies a $/MW of around 0.5, which is unrealistic. The UNFCCC documentation reports Rs. 982.77 million (US$17.8 million), which is more reasonable and thus reported here. The following information is thus under review: "Financial closure took place in May 2011. The debt to equity ratio for the project was 50:50. Financing comprised of a 14-year term loan of USD 4.6mn (INR 206.1 mn) and USD 4.6mn (INR 206.1mn) sponsor equity. The term loan had a repayment schedule of 48 quarterly instalments. IDFC was the lead arranger." Construction of the project was started in May 2008 and was targeted to be completed by January 2012. The Techno Economic Clearance to the project was first accorded in 1991-92 by the Central Electricity Authority (CEA). At that time the project was planned by the Himachal Pradesh State Electricity Board. The MoU was signed with M/S Om Power Corporation in Aug.1993. Implementation Agreement was signed in July,1998. Draft PPA between the company and the HPSEB had been signed in Dec.1993. According to news reports, the State Cabinet approved the termination of implementation agreement signed with the M/s OM Power Corporation Ltd as the company had failed to start the construction. However the company managed to get the project re-allotted to itself despite, a two time rejection of the re-allotment proposal. This project remained in the centre of controversy because of the alleged degree of damage done to local water supply systems and the Neogal riverine ecology. he geographical coordinates are: Longitude : 760-30’-40” E and Latitude: 320-05’-15” N. http://cdm.unfccc.int/filestorage/6/C/W/6CWXN3F01Y9I2ME8TP54BDZVGRHLQJ/OPCL%20PDD.pdf?t=UEZ8bThlZzF1fDCwarbAOAvqsu_n46Wt7B6W