Simran Amuthapuram Wind Farms

active

Simran Wind Project Private Limited (Simran), promoted by Techno Electric and Engineering Company Limited (Techno), was implementing a 101.4MW wind power project in the state of Tamil Nadu in Amuthapuram, Rasta and Muthiampatti belt.The area accounts for a PLF of around 27.5% on average.Turbines ranging from 1.5 to 2.1 MW each. The electricity generated from the project would be evacuated by the Tamil Nadu state grid. The delivery of the power plant had been done by Suzlon Energy Limited. Simran Wind Project Private Limited (Simran) had entered into a 20-year Power Purchase Agreement under Renewable Energy Certificate (REC) scheme with the Tamil Nadu Generation & Distribution Company (TANGEDCO) at an APPC (Average Power Purchase Cost) tariff of US$ 0.05/Unit (INR 2.37 per unit @ 45INR/USD). The total capacity of 101.4 MW was eligible under REC as per the CERC and was also eligible for GBI benefit. This was the first project in India to be approved under the REC scheme. Moreover, the project was expected to generate 240,000 RECs on an annual basis and UNFCC approved the project for Certified Emission Reductions (CERs) in December 2010. Also, the IFC Post-2012 Carbon Facility proposed to forward purchase up to 1.75 million CERs to be generated through 2020 by Simran’s wind power projects. Simran would receive from IFC a pre-determined percentage of the CER spot price at the time of delivery, subject a floor and a cap. IFC would on-deliver CERs delivered by Simran to the participants in the Facility on a pro-rata basis. The total project cost was US$ 133.3 million. Financial closure took place in June 2011. The debt equity ratio for the project was about 60/40. Debt comprised of the following sources: (a)Standard Chartered Bank provided a $30m 10-year 5-month term loan. There was a grace period of 1year-7months and repayment would be done in 18 semi annual instalments.The pricing was at a margin of 325bp over LIBOR, and included a commitment fee of 100bp; (b) International Finance Corporation (IFC) provided a $30m 10-year 5-month term loan.Repayment would be in 18 Semi-Annual instalments; (c) DBS Bank provided a $20m 7-year term loan. Equity was provided by the Sponsor TEECL (US$ 48.33mn for a 96.62% stake), and IFC (US$ 5mn for a 3.38% stake). Construction for the plants started in April 2011, and commercial operations started in September 2011, the project construction having been accomplished within a period of 6 months.