SEI Surya Lab Private Limited

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In February 2014, SEI Surya Lab Private Limited (SSLPL),a special purpose vehicle of Sunedison Inc., was awarded the license for setting up a 30 MW grid connected solar Photo voltaic power project in Rajasthan, under the Jawaharlal Nehru Solar Mission (JNNSM)Phase-II Batch-I of the scheme. Under the JNNSM Phase-II the total aggregated capacity of grid connected Solar PV Projects was expected to be 750 MW. The output from the project would be fed to the Northern,Eastern,Western and North Eastern (NEWNE) grid of India. The JNNSM mission had designated Solar Energy Corporation of India (SECI) as the nodal agency for procurement of solar power under Phase-II bidding. The winners were the project developers who sought the minimum possible funds to make their projects viable to sell power to SECI at the designated tariff. With an objective to promote local manufacturing, SECI invited bids in two separate categories, reserving half of the projects under domestic content requirement (DCR) restrictions. Separate bids were called for 375 MW capacity under DCR category and remaining 375 MW under open category. INR 18.75 billion was earlier approved for viability gap funding (VGF) of all the projects under JNNSM Phase-II Batch-I. 122 bids amounting to 2170MW were offered. Since the bids were more than the 750MW, winners were decided based on reverse bidding for viability gap funding demand. In the DCR category, bids varied from INR 13.5 million/MW to INR 24.56 million/MW. In the Open category, the bids varied from INR 1.7 million/MW to INR 13.5 million/MW. SEI Surya Lab Private Limited (SSLPL) had won the bid under the non-DCR category by quoting a viability gap funding of INR 8.73mn/MW, which amounted to a VGF grant of US$ 4.3mn (INR 261.86mn @61 INR/USD). SSLPL had entered into a 25-year Power Purchase Agreement with SECI. Transmission and/or wheeling charges would be paid by WSUP.The feed-in tariff was designated at INR 5.45/kWh (INR 4.75/kWh for projects claiming accelerated depreciation) for 25 years. Financial closure took place in October 2014. The total project cost estimated at the time of financial closure was about US$ 33.8mn (INR 2061.86mn @61 INR/USD). Apart from the grant from SECI of US$ 4.3mn, financing comprised of a term loan of US$ 29.5mn (INR 1800mn). Details of sponsor equity were not available. The term loan was provided by ORIX Corp and Rabobank Nederland. The construction for the project started in October 2014 and was expected to be commissioned by March 2015 (13 months from award).