Saidham Overseas Private Limited

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In December 2010, Saidham Overseas Private Limited (SOPL), a project SPV of Lanco Solar Energy Private Limited, was awarded the license for setting up a 5MW grid connected solar Photo voltaic power project located at Askandra village, in Jaisalmer District of Rajasthan under the Jawaharlal Nehru Solar Mission (JNNSM) Phase-I Batch-I of the scheme. Under the JNNSM the total aggregated capacity of grid connected Solar PV Projects in Phase-1 was expected to be 500 MW. 150MW aggregate was allotted in FY2010-11 as a part of Batch-I of JNNSM Phase-I. SOPL had acquired land for the project. The output from the project would be fed to the Northern,Eastern,Western and North Eastern (NEWNE) grid of India. The plant would use high power modules using multi crystalline (mc-Si) modules cells consisting thin film technology. The JNNSM mission had designated NTPC’s Vidyut Vyapar Nigam Limited (NVVN) as the nodal agency for procurement of solar power. On 18th August 2010, NVVN invited RFQs from interested developers to develop 150 MW solar PV projects with a capacity of 5 MW each, and 500 MW solar thermal projects with a minimum capacity of 5 MW and maximum of 100 MW each. NVVN received 418 RFQ responses on September 24, 2010 from both PV and solar thermal project developers (343 applications for solar PV,55 for solar thermal projects, and 5 for combined thermal and PV projects). As the total capacity of the shortlisted projects were in excess of the approved capacity of 150 MW Solar PV Projects and 500 MW Solar Thermal Projects, bidders were required to submit proposals offering maximum discount on the CERC (Central Regulator) approved applicable tariff for grid connected solar power projects for FY 2010-11 - a reverse bidding auction process. The last date for the submission of proposal was November 16, 2010. For PV Thermal projects, NVVN received bids from project developers indicating discounts offered by each over CERC determined tariff of INR 17.91/kWh. Since, the target allocation for solar thermal projects was 150 MW, only the top 30 discounts were finally selected to set up solar power projects. The final 30 solar PV projects selected had bids between INR 10.95/kWh to INR 12.75/kWh. The cutoff discount was 515 paise. SOPL won the project quoting a tariff of INR 11.75/kWh (a discount of 616 paise). In January 2011, Saidham Overseas Private Limited (SOPL) had entered into a 25-year Power Purchase Agreement with NTPC Vidyut Vyapar Nigam (NVVN), which was the the nodal agency to purchase solar power generated by independent solar power producers,under JNNSM. JNNSM provided for a scheme of "bundling" relatively expensive solar power with cheaper power from the unallocated quota of the Government of India out of the capacity of the NTPC based coal stations.This cheaper bundled power would then be sold to state power distribution companies at the CERC regulated price. This would bring down the gap between the average cost of power and sales price of power of the state Discom. The total capacity of 5MW was also eligible for carbon credits. SOPL would pass on the gross benefits of CDM to the distribution licensee (NVVN) in the following manner - (a) 100% of the gross proceeds to be retained by SOPL in the 1st year after the date of COD, (b) in the 2nd year, the share of NVVN would be 10% which would be progressively increased by 10% every year till it reaches 50%, where after the proceeds would be shared equally by SOPL and NVVN. Transmission and/or wheeling charges would be paid by SOPL. Financial closure took place on 28th June 2013.The total project cost estimated at the time of financial closure was US$ 13.2mn (INR 773.3mn @58.6 INR/USD).The debt equity ratio for the project was 75/25. Financing comprised of a 15-year term loan of US$ 9.9mn (INR 580mn), and sponsor equity of US$ 3.3mn (INR 193.3mn). The term loan had a grace period of 3-months are and repayment schedule of 60 quarterly installments. The loan was solely arranged by ID