Sangam Power Generation Co. Ltd

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Sangam Power Generation Co. Ltd was created to build and operate 1980 MW Karchhna Coal Power Plants in Tehsil Karchana of Allahabad District, Uttar Pradesh. The project was designed in two phases: Phase I of this project was 1320 MW (2x660MW), and phase two was 660 MW. Jaypee Group (Jaiprakash Power Ventures Ltd) was the project sponsor and Sangam Power Generation Co. Ltd was a subsidiary of Jaypee Group (Jaiprakash Power Ventures Ltd). The project off take arrangement were as follows: For phase-I , 90% was to be acquired by government of Uttar Pradesh under a long term PPA and 10% was to be sold as merchant power. For phase 2 (660 MW) : 20%,was to be acquired by government of Uttar Pradesh under a long term PP and 80% of electricity was to be sold as merchant power. The project was awarded by a competitive tender and the bidding criterion was the minimum tariff. Jaiprakash Power Ventures Ltd won the tender by offering a levelised tariff of Rs 2.97 per unit in February 2009, which was lower than what it had proposed in the first tender. The government of Uttar Pradesh initially tendered the project in September of 2008, but it declared the tender void because it found the tariff offered by bidders were too high. Reliance and Lanco refused to revise their rates. The letter of implementation was issued on 21st February 2009, SPA executed on 23rd July 2009. The estimated cost of Phase-I (2x660 MW) was Rs. 76 billion (US$1662 million). This phase reached financial closure in January 2010 with Rs. 57 billion of debt and Rs. 19 billion of equity. The debt equity ratio was 75/25. Expected Commissioning is 2014.