Orange Renewable Power Private Limited

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Orange Renewable Power Private Limited (ORPPL), a Special Purpose Vehicle promoted by Orange Renewable Holdings Pte Limited (ORHPL) of Singapore, entered into an agreement with Rajasthan Government to develop a 19.5MW wind farm located at Dalot village in Pratapgarh district of Rajasthan.The wind farm would involve the building of 13 Units of Vensys V-82 wind turbines (1.5MW capacity each). The electricity generated from the project would be evacuated by the Rajasthan state grid. ORPPL implemented the project on lump sum turnkey (LSTK) basis with ReGen Powertech Private Ltd (RPPL) and its wholly owned subsidiary, Renewable Energy Generation Private Ltd (REGPL).ORPPL had entered into a 12-year comprehensive O&M contract with RPPL. The Bhesada Wind farm was expected to sell the power to Jaipur Vidyut Vitran Nigam Ltd (JVVNL), through a 25-year PPA, singed in September 2012.The APPC (Average Power Purchase Cost) base tariff as per RERC preferential tariff order for Pratapgarh district was US$ 0.093/kWh (INR 5.44 per unit @58.6 INR/USD) for the entire 25 years. The project was also eligible for a 4% extra billable energy on account of compensation for transmission losses for the supply of power to the Rajasthan Vidyut Prasaran Nigam Ltd (RVPNL), Dalot substation at 132 KV. The total capacity of 19MW was eligible under REC as per the CERC and CDM benefits. Financial closure took place in April 2013.The total project cost at the time of financial closure was US$ 22.2mn (INR 1304.4mn @58.6 INR/USD).The debt equity ratio for the project was about 69/31. Financing comprised of a 14-year term loan of US$ 15.3mn (INR 900mn) and sponsor equity of US$ 6.9mn (INR 404.4mn). The term loan was priced at 175 basis points over the prevailing SBI Base rate and had a repayment schedule of 54 quarterly installments (starting from 31 December 2013). As per terms of the loan sanction, a DSRA equivalent to 2 succeeding quarters’ of debt service obligation (principal and interest) was to be built up from the cash accruals of the project after meeting the debt service obligations or alternatively a BG for equivalent amount was to be furnished by the sponsors. The lead arranger of the loan was State Bank of India and the participating banks were State Bank of Patiala, and Indian Renewable Energy Development Agency. Construction started in October 2012 and the project was fully commissioned in March 2013. The project had stabilized and had reported average monthly Plant Load Factor (PLF) of 30.96% from April to August 2013 period.