Surya Vidyut Limited

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Surya Vidyut Limited, a wholly owned subsidiary of CESC Limited, entered into an agreement with Gujarat Government, to develop 26 MW wind power project at Surendranagar district of Gujarat. The project would be executed under the Gujarat Wind Power Policy-2013. The electricity generated from the project would be evacuated to the state grid through Northern, Eastern, Western and North-Eastern grid of India. Surya Vidyut Limited was expected to sell all the power to the Gujarat state utility company (GUVNL) through a PPA. The APPC (Average Power Purchase Cost) base tariff as per GERC (State Electricity Regulator) tariff order was US$ 0.068/Unit (INR 4.15 per unit @61 INR/USD) for the 25 years of operation. The transmission charges would be paid by SVL to the state transmission utility. The project was eligible for CDM benefits as well. The sharing of net proceeds on account of CDM benefits realized through sale of CER generated from corresponding annual energy generation would be as follows: 100% of net proceeds through sale of CER generated in the 1st year after the date of commercial operation of the wind power project shall be retained by the eligible unit. In the 2nd year, the share of the beneficiary shall be 10% which shall be progressively increased by 10% every year till it reaches 50% in the 6th year; thereafter the proceeds shall be shared in equal proportion by the eligible unit and the GUVNL. The project attained financial closure on 14th August 2014 at a debt equity ratio of 70/30. The estimated project cost at the time of financial closure was US$ 26mn (INR 1589.2mn @61 INR/USD). Financing comprised a 14-year term loan of US$ 18.2mn (INR 1112.4mn) and sponsor equity of US$ 7.8mn (INR 476.8mn).The loan had a repayment schedule of 53 quarterly installments. The loan was provided by Yes Bank. The project was expected to be commissioned by December 2015.