ReNew Wind Energy (Jath) Private Limited

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ReNew Wind Power Private Limited entered into an agreement with Maharashtra Government, to develop 74.65MW wind power project at Jath Mandal village in Sangli district of Maharashtra. The project would be executed by ReNew Wind Energy (Jath) Private Limited, a special purpose vehicle. The wind farm would involve the building of 29 units of Gamesa G58 wind turbines (850kW each) and 25 units of Gamesa G97 (2MW each).The electricity generated from the project would be evacuated by state grid thorugh Northern, Eastern, Western and North-Eastern (NEWNE) grid of India. Gamesha Wind Turbines Private Limited would develop, construct, commission, operate and maintain the project. ReNew Wind Energy (Jath) Private Limited would sell the power to Maharashtra state Electricity Distribution Company Limited (MSEDCL). The APPC (Average Power Purchase Cost) base tariff as per MERC tariff order (dated 29 April 2011 for Wind zone 1) was US$ 0.10/Unit (INR 5.37 per unit @53.44 INR/USD) for the first 13 years of operation. The transmission charges would be paid by ReNew to the state transmission utility. The total capacity of 74.65MW was eligible for CDM benefits and the company had initiated the process with UNFCC. The project attained financial closure on 1st August 2013 at a debt/equity ratio of 75/25. The estimated project cost at the time of financial closure was US$ 104.2mn (INR 6105.7mn @ 58.6 INR/USD). Financing comprised of a 13-year 3-month term loan of US$ 78.1mn (INR 4579mn) and sponsor equity of US$ 26mn (INR 1526.7mn).The term loan had a grace period of 6-months and a repayment schedule of 50 quarterly installments. The loan was priced at at 225 basis points over the prime lending rate of Yes bank Limited. The lead arranger of the term loan was Yes Bank and the other participating banks were Central Bank of India and Vijaya Bank. The project started construction in May 2012 (EPC contract signed). The company progressively commissioned the generation capacity between October 2012 and June 2013.