ReNew Wind Energy (Karnataka) Private Limited

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ReNew Wind Power Private Limited entered into an agreement with Karnataka Government, to develop 50.4MW wind power project at Tadas in Haveri & Darwada district of Karnataka. The project would be executed by ReNew Wind Energy (Karnataka) Private Limited, a special purpose vehicle. The wind farm would involve the building of 63 Enercon E-53 make wind turbines of 800kW capacity each.The electricity generated from the project would be evacuated by Southern grid of India. Enercon India Limited would develop, construct, commission, operate and maintain the project at an all-inclusive price. ReNew Wind Energy (Karnataka) Private Limited was expected to sell the power to Karnataka state electricity distribution company. The APPC (Average Power Purchase Cost) 10-year base feed-in tariff as per KERC (Karnataka State Regulator) tariff order, was US$ 0.069/Unit (INR 3.70 per unit @ 53.44INR/USD). The transmission charges would be paid by ReNew to the state transmission utility. The project attained financial closure on 2nd November 2012 at a debt equity ratio of 75/25. The estimated project cost at the time of financial closure was US$ 57.7mn (INR 3081.6 @53.4 INR/USD). Financing comprised a 14-year term loan of US$ 43.3mn (INR 2311mn) and sponsor equity of US$ 14.4mn (INR 770.6mn).The term loan had a grace period of 9 months and a repayment schedule of 50 quarterly installments including a ballooning repayment structure.The loan was priced at 10.5%. The mandated arranger was Yes Bank and the participating banks were Corporation Bank,Indian Renewable Energy Development Agency Ltd. The project started construction in April 2012 and as per company sources was commissioned in April 2013.