RattanIndia Power Limited (Amravati Thermal Power Project)

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In April 29, 2009, Maharashtra State Electricity Distribution Company Limited (MSEDCL) signed an MoU with Indiabulls Power Limited, for developing 2700 MW Thermal Power Plant. The company was developing the Stage I of 1,350 MW. Power plant was located in “Additional Amravati Industrial Area” in Amravati district in Maharashtra. The primary fuel for the Project was Coal. The project reached financial closure in November 2009. The company established Sophia Power Company Limited, a special purpose vehicle, to implement the project. In July 2009, the name of the company was changed from Sophia Power Company Ltd to Indiabulls Power Ltd. The company was granted the project through MOU route on a negotiated basis. In April 2009, MSEDCL entered into a 25-year power purchase agreement with Indiabulls Power Limited to supply 1000 MW. In June 5, 2009, the company entered into a power purchase agreement with Tata Power Trading Company Ltd for sale of upto 1,000 MW of power. The rest of the power off take (about 640MW) was expected to follow. The project cost was estimated to be approximately USD 1422.8 million (INR 68880 million at 48.41 INR/USD). IPL financed this project through an equity contribution of USD 355.7 million (INR 17220 million) and a loan of USD 1067.1 million. The project had been funded in a debt: equity ratio of 75:25. On November 26, 2009, an USD 1067.1 mn (INR 51660m) loan facility was syndicated by SBI with Power Finance Corporation, State Bank of India, Rural Electrification Corporation Limited, Bank of India, Punjab National Bank,UCO Bank, Central Bank of India, Canara Bank, Life Insurance Corporation ofIndia Union Bank of India, United Bank of India, Syndicate Bank, State Bankof Travancore, and State Bank of Bikaner and Jaipur. The deal was a term loan facility maturing September 30, 2023. Project sponsor was Indiabulls Real Estate Ltd and Financial adviser was SBI Capital Markets Ltd. Construction was expected to take 44 months beginning July 1, 2009. Maharashtra Industrial Development Corporation (MIDC) had allotted 1350 acres of Land to IPL. Coal linkage had been granted and letters of assurance from South Eastern Coalfields Ltd. (SECL), Western Coalfields Ltd. (WCL) and Mahanadi Coalfields Ltd. (MCL) had been issued. The Project had got all approvals from statutory authorities. SEPCO China was the EPC contractor. For transmission of generated power from Amravati, TPP, the power plant would be connected to MSETCL/PGCIL, 400 kV line at Akola, Maharashtra. The power project and was expected to be completed by March 1, 2013. Unit-1 of 270MW was commissioned on 25th March 2013, and Unit-2 of 270MW was commissioned on 17th February 2014.