Prayagraj Power Generation Co. Ltd.

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Prayagraj Power Generation Co. Ltd. was created to build and operate 3300 MW super critical Bara Thermal Power Plants in Tehsil District, Uttar Pradesh. The project was designed in two phases: Phase-I consisting of 1980 MW (3x660 MW) and phase II of 1320 MW (2x660MW) for a total planned capacity of 3300 MW. Prayagraj Power Generation Co. Ltd. was a subsidiary of Jaypee Group (Jaiprakash Power Ventures Ltd). The EPC contractor was Bharat Heavy Electricals Ltd., or BHEL. For phase-I , the electricity output was to be sold as follows: 90% by government of Uttar Pradesh under a long term PPA and 10% was to be sold as merchant power. For phase 2 (660 MW) : 20%,was to be acquired by government of Uttar Pradesh under a long term PP and 80% of electricity was to be sold as merchant power. The project was awarded by a competitive tender and the bidding criterion was the minimum tariff in February 2009. Jaiprakash Power Ventures Ltd won the tender by offering a levelised tariff of Rs 3.02 per unit, which was 28% lower than what it had proposed in the first tender. The government of Uttar Pradesh initially tendered the project in September of 2008, but it declared the tender void because it found the tariff offered by bidders were too high. Reliance and Lanco refused to revise their rates. The letter of implementation was issued on 2nd March 2009, SPA executed on 23rd July 2009. The total project cost for phase I was estimated to be Rs. 115 billion (US$2,514.76 million). The phase I of project reached financial closure in January 2010. Phase I was financed with Rs. 86.25 billion of debt and Rs. 28.75 billion of equity. The debt equity ratio was 75/25. This phase was expected to be commissioned in 2014.