Ratnagiri Power Project

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The Ratnagiri Power Project was a 1,200 MW (4 units of 300 MW each) coal-fired power plant located in Ratnagiri in the state of Maharashtra. The project was being set up by JSW Energy Limited (JSWEL). This project was awarded to JSWEL pursuant to the signing of a Memorandum of Understanding (MoU) following direct negotiations with the Government of Maharashtra on June 10, 2005. JSWEL is was part of the JSW Group. In June 2006, JSWEL established JSW Energy Ratnagiri Limited (JSWERL) to implement this project. JSWERL proposed to sell power generated by the project under a combination of long-term PPAs by participating in the competitive bidding organized by state distribution companies for the procurement of power and short-term PPAs with JSW Power Trading Company, a power trading company which was part of the JSW Group. The project was estimated to cost USD 1125 million and achieved financial closure in August 2007. A consortium of 21 banks and financial institutions with the State Bank of India in the lead had provided the debt for the project. SBI Capital Markets Ltd (SBI Caps) was the lead arranger and advisor for the project. The project had a debt-equity ratio of 3:1 (term loan of US $ 843.75 million for 14.5 years and equity of US $ 281.25 million).All the lead managing banks except Tamilnad Mercantile Bank are public financial institutions. The project was expected to be completed by June 2010 and achieve commercial operation by October 2010. JSW Energy Ltd announced that Unit I of 300MW of the 4x300MW Power Project at Jaigad, Ratnagiri District, Maharashtra State, had been commissioned and had achieved Commercial Operation Date (COD) from September 01, 2010.