Orange Jaisalmer Wind Energy Private Limited

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Orange Jaisalmer Wind Energy Private Limited (OJWEPL), a Special Purpose Vehicle promoted by Orange Renewable Holdings Pte Limited (ORHPL) of Singapore entered into an agreement with Rajasthan Government to develop a 50.4MW wind farm located at Bhesada village in Jaisalmer district of Rajasthan. The wind farm would involve the building of 24 Units of Suzlon S-88 wind turbines (2.1MW capacity each). The electricity generated from the project would be evacuated by the Rajasthan state grid. OJWEPL had entered into agreements with Suzlon Energy Limited to develop (including operation and maintenance of) this greenfield project. The Bhesada Wind farm was expected to sell the power to Jodhpur Vidyut Prasaran Nigam Limited, through a 25-year PPA signed on 1st July 2012.The APPC (Average Power Purchase Cost) base tariff as per RERC prevailing tariff order for Jaisalmer district was US$ 0.087/kWh (INR 5.12 per unit @58.6 INR/USD) for the entire 25 years. The total capacity of 50.4 MW was eligible under REC as per the CERC and CDM benefits. Financial closure took place on 18th April 2013.The total project cost at the time of financial closure was US$ 47.5mn (INR 2783.6mn @58.6 INR/USD).The debt equity ratio for the project was about 70/30. Financing comprised of a 14-year 4-months term loan of US$ 33.2mn (INR 1948.5mn) and sponsor equity of US$ 14.2mn (INR 835.1mn). The term loan was priced at 275 basis points over the prevailing SBI Base rate and had a repayment schedule of 54 quarterly installments. The lead arranger of the loan was State Bank of India and the participating banks were State Bank of Hyderabad, and Indian Renewable Energy Development Agency. Construction started in October 2012 and 39.9 MW of the project was commissioned in March 2013. Construction for the residual 10.5 MW was under progress.