SEW Bichom HPP

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On 14th September 2007 SEW Infrastructure Limited signed an Implmentation Agreement with Arunachal Pradesh Government for setting up a 2x48 MW run-of the river type hydro power project on Bichom river, a tributary of Kameng river in West Kameng district of Arunachal Pradesh. Post environmental clearance in September 2011, the capacity was revised to 2x60MW. Installed gross energy generation capacity of the project was 480.7 MU in a 90% dependable year with 95% machine availability at PLF of 45.72%.The project would use 2 numbers of Vertical Francis type turbines each of rated capacity of 60MW. The electricity that is generated shall be exported to the Northern, Eastern, Western,and North Eastern (NEWNE) grid (of Powergrid) through the North Eastern Regional Load Dispatch Center (NERLDC), where it will provide much needed power to the North-Eastern states of India - Arunachal, Assam, Meghalya,Manipur,Mizoram,Nagaland,Tripura. SEW Infrastructure Limited was the EPC contractor. Arunachal Pradesh State Electricity Board (APSEB) had signed a power purchase agreement (PPA) with SEW Nafra Power Corporation Private Limited, the SPV established to implement the project. As per the APERC (state regulator) approved PPA, APSEB would purchase electricity at the levelized rate of US$ 0.078/Unit (INR 3.69/unit @47INR/USD) from the date of commissioning.Out of the expected net energy generation, 12% of the energy generated was to be provided at free of cost to Arunachal Government. SEW Nafra was also expected to give free power (up to 35 units) at INR 0.01/kWh for local catchment area development. SEW Nafra Power had represented its case for carbon credits for the project, and UNFCC was currently validating the project.The financial benefits of the revenue obtained by selling of the CERs was expected to improve the Equity IRR of the project. Financial closure took place on 12th August 2011 at a debt to equity ratio of 70/30.The estimated cost of the project was USD 193.6 million (INR 9100 mn @47 INR/USD). Financing comprised of a 14-year 9-months term loan of USD 135.5mn (INR 6370 mn) and USD 58.1mn (INR 2730mn) sponsor equity. The term loan had a grace period of 1 year and a repayment schedule of 41 quarterly instalments. The loan was priced at 375 basis points over the prevailing SBI Base rate. The participating banks were State Bank of India (2120mn),L&T Infrastructure Finance (1500mn), Bajaj Finance Ltd (1000mn), State Bank of Bikaner & Jaipur (750mn), IIFCL (1000mn). SBI Capital Markets was the lead arranger. Pre-construction activities of the project was started in January 2012 after the execution of EPC contract between the SPV and SEW Infra and was targeted to be completed by January 2015. The DPR (detailed project report) was first approved by the Arunachal Pradesh Government in 18th September 2009. The Techno Economic Clearance to the project was accorded in 11th February 2011 by the Central Electricity Authority (CEA).