Shirpur Power Private Limited

active

The Maharashtra Government, signed a MoU with Sintex Power Limited (a Sintex Group company) for development of a 300MW (2 units of 150MW each) coal-fired thermal power plant at Nardana in Dhule District, in Maharashtra. Sintex Power Limited established Shirpur Power Private Limited (SPPL), a SPV for executing this project. The land is located at Nardana Industrial Area of MIDC and State Government would assist in the procurement of land for the project but the full cost of the purchase of land would be borne by SPPL. Water would be obtained from Sulewade Barrage. SPPL had received all major clearances like environment clearance, chimney clearance etc. Power generated at 15.75kV voltage level from each generator would be evacuated to grid through respective step up Generator transformers (GT),220kV switchyard and 220 kV double circuit overhead transmission line to MSETCL (Maharashtra State Electricity Transmission Company Ltd) –substation located approx 30km from the plant. SPPL was also responsible for any transmission infrastructure to connect the power project to the designated substation. The coal requirement for the project was estimated at 1.2 million tons per annum (MTPA).The fuel for the project would be both domestic coal and imported coal. The Indigenous Coal would come via railway, whereas the imported coal would come from the port of Hajira(Surat) or Dahej and then to the site by Railway wagons. Necessary tie-up for the fuel was being done to ensure consistent supply of fuel. For movement of coal by rail from Indian Rail Network, SPPL would construct last-mile rail connectivity for takeoff from Nardana railway station on Udhna- Jalgaon section of Mumbai Division of Western Railway to the power plant site. The company had awarded a fixed price (INR 13000mn) EPC contracts to Sintex Infra Projects Limited (SIPL). While SIPL had no experience in execution of power projects, it would be able to leverage upon the technical strength of Zillion Infra projects Pvt Ltd (ZIPL - a company acquired by Sintex Group), which had an established track record of successfully executing large sized infrastructure orders especially in power generation sector. SIPL had placed an order for boiler-turbine-generator (BTG) package and main plant DCS with BHEL in November 2011 for a value of INR 7010mn. Further, SIPL had also placed orders for other packages required for power project like coal handling system, cooling tower, chimney, switchyard package, ash handling systems and balance of the plant with other reputed suppliers. Shirpur Power Private Limited (SPPL) was designed on a "Group Captive Project" basis and hence 51% of the capacity will be supplied to industrial consumers (In accordance with a notification issued by the Ministry of Power for captive power plants, at least 26% of the equity and at least 51% of the power must be sold to captive users). The plant was situated in the midst of industrial area (Nardana Industrial Area of Maharashtra Industrial Development Corporation) and would supply about 300MW to industries thus ensuring perpetual demand for the power generated from the plant. The balance capacity, if any, was expected to be sold on a merchant power basis to the power deficit Western region. SPPL would be responsible for the the associated transmission and interface costs. Financial closure took place on 10th August 2012. The Project (300MW) cost at the time of financial closure was estimated to be USD 329.9mn (INR 17630mn @53.44 INR/USD). The Debt/Equity ratio of the project was 75/25. Financing comprised a 13-year 6-months term loan of US$ 247.4mn (INR 13220mn) and a sponsor equity of US$ 82.5mn (INR 4410mn). The debt, arranged by SBI Capital and IDBI Bank. The participating banks were State Bank of India (5000mn), IDBI Bank (3220mn), and Bank of Baroda (5000mn). The construction for the project had started in 2011 and was expected to be progressively commissioned by early 2014. The Ist Unit (150MW) was schedul