Shree Ganesh Charnaka Solar Plant

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In December 2010, Alex Astral Power Private Limited (AAPPL) (a subsidiary of Shree Ganesh Jewellery House Ltd. (SGJHL)),signed an MoU with Gujarat Energy Development Agency (GEDA) for setting up a 25-MW solar power plant at Charnaka village of Patan district in Gujarat, under the Gujarat Solar Policy 2010.The output from the project would be fed to the North-East-West-North-East (NEWNE) grid of India.The proposed project would use array of thin film modules the DC output of which would be converted into alternating current by 32 numbers of inverter each having nominal capacity of 800 KVA. The PLF was designed for 19.28. This output would be stepped up to 66KV by two 15 MVA transformers to be located in the proposed 66KV plant switchyard. Power evacuation, as per the state policy, was the responsibility of Gujarat Energy Transmission Corporation Limited (GETCO).AAPPL had awarded the EPC to Photon Energy Systems Limited and Indu Projects Limited. AAPPL had entered into a 25-year Power Purchase Agreement with the state utility Gujarat Urja Vikas Nigam Limited (GUVNL),which would be effected at the time of commissioning of the project. The APPC (Average Power Purchase Cost) as per the Gujarat Solar Policy 2010, was US$ 0.32/Unit (INR 15 per unit @ 47INR/USD) for the first 12 years, and US$ 0.11/Unit (INR 5 per unit @47 INR/USD) from 13th year to 25th year.The total capacity of 25 MW was eligible for carbon credits. The project had a renewable crediting period of 21 years duration. Proceeds of carbon credit were to be shared as follows: (a) 100% by project developer in the first year after the date of commercial operation of the generating station/ transmission system; (b) 2nd year – share of beneficiaries (DISCOM-GUVNL) @ 10% to progressively increase by 10% every year up to 50% whereafter the proceeds would be shared in equal proportion, by AAPPL and the GUVNL.Transmission and/or wheeling charges would be paid by AAPPL. The Asian Development Bank (ADB) also provided a Partial Credit Guarante (PCG) for the project. Financial closure took place in September 2011.The total project cost was US$ 85.106mn (INR 4000mn @47 INR/USD).The financing comprised of sponsor equity of US $25.5mn (INR 1200mn @47 INR/USD) and debt of US$ 59.6mn (INR 2800mn @47 INR/USD) at a debt/equity ratio of 70/30. The 13-years 4-months term loan had a repayment schedule of 48 quarterly instalments after a 6 months grace period. The loan was priced at a margin of 325bp over the prevailing SBI base rate.The debt was arranged by State Bank of India (INR 1250mn). Other participating banks were State Bank of Bikaner & Jaipur (INR 250mn), State Bank of Patiala (INR 200mn), Bank of Baroda (INR 600mn), and Indian Overseas Bank Ltd.(INR 500mn). Construction for the project started in March 2011 and commissioning was expected in January 2012.Alex Astral, along with other developers had asked for an extension of time, which GERC (State Regulator) had declined in January 2012. The plant was commissioned on 4th March 2012 and had operated at a capacity utilization factor (CUF) of 19.25% in FY2013.