Sun Charanka Solar Plant

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In December 2010, Sun Clean Renewable Power Private Limited (SCRPPL) (a project SPV of Sun Group-a private equity fund manager in India, Russia, and other emerging markets), signed an MoU with Gujarat Energy Development Agency (GEDA) for setting up a 25-mw photovoltaic solar project at Charanka in Patan district of Gujarat, under the Gujarat Solar Policy 2010. The Project was proposed to be implemented for entire 25 MW however due to various reasons such as land issues, delay in financial closure and flooding of land due to unusual and excessive rainfall in the prposed project areas resulted in commisioning of only 6 MW. SCRPPL had petitioned to Gujarat Electricity Regulatory Commision (GERC) for extension of the "control period", defined as per GERC's Tariff Order dated 29th January,2010 for the remaining 19 MW capacity. The said petition was dismissed by GERC on 22nd February, 2012. The output from the 6MW project would be fed to the North-East-West-North-East (NEWNE) grid of India. SCRPPL had appointed Larsen & Toubro (L&T) as the EPC contractor for the project. Power evacuation was planned through a 66 KV line, which, as per the state policy, was the responsibility of Gujarat Energy Transmission Corporation Limited (GETCO). SCRPPL had entered into a 25-year Power Purchase Agreement with the state utility Gujarat Urja Vikas Nigam Limited (GUVNL) on 8th December 2010, 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 USD 0.32/Unit (INR 15 per unit @ 47INR/USD) for the first 12 years, and USD 0.11/Unit (INR 5 per unit @47 INR/USD) from 13th year to 25th year. The total capacity of 6MW was eligible for carbon credits. Proceeds of carbon credit were to be shared as follows: (a) 100% by SCRPPL in the first year after the date of commercial operation of the generating station/ transmission system;(b) in the 2nd year the share of GUVNL would be 10% which would be progressively increased by 10% every year up to 50% whereafter the proceeds would be shared in equal proportion, by SCRPPL and GUVNL.Transmission and/or wheeling charges would be paid by SCRPPL. Financial closure took place in September 2011. The total project cost was US$ 19.1mn (INR 900mn @47 INR/USD). The debt equity ratio for the project was 67/33. Financing comprised of Debt of US$ 12.8mn (INR 600mn) and sponsor equity of US$ 6.4mn (INR 300mn). The 14year term loan of INR 600mn was solely arranged by L&T Infrastructure Finance Limited. The Asian Development Bank (ADB) also provided a Partial Credit Guarante (PCG) for the project. Commercial operation of 6MW solar PV project was expected to start in December 2011. The final commissioning was done in April 2012.