Tata Power Dalot Windfarm

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Tata Power Renewable Energy Limited (TPRENL), a subsidiary of Tata Power Limited entered into an agreement with Rajasthan Government to develop a 100.5MW wind farm located at Dalot village in Pratapgarh district of Rajasthan. The project would be executed in two phases- 30MW in Phase-I and 70.5MW in Phase-II. The wind farm would involve the building of Regen wind turbines. The electricity generated from the project would be evacuated by the Rajasthan state grid. TPRENL had entered into agreements with Regen Powertech Limited for EPC and operation and maintenance of this greenfield project. The Dalot Wind farm was expected to sell the power to Jaipur Vidyut Vitaran Nigam Limited, through a 25-year PPA.The APPC (Average Power Purchase Cost) base tariff as per RERC preferential tariff order for Pratapgarh district was US$ 0.093/kWh (INR 5.44 per unit @58.6 INR/USD) for the entire 25 years. The project was also eligible for a 4% extra billable energy on account of compensation for transmission losses for the supply of power to the Jaipur Vidyut Vitaran Nigam Ltd, Dalot substation at 132 KV. The total capacity of 30MW was eligible under REC as per the CERC and CDM benefits. Financial closure for 30MW Phase-I took place in March 2013.The total project cost of Phase-I (30MW) at the time of financial closure was US$ 33.2mn (INR 1944mn @58.6 INR/USD). The debt equity ratio for the project was about 70/30. Financing comprised of a 12-year 9-months term loan of US$ 23.2mn (INR 1361mn) and sponsor equity of US$ 9.9mn (INR 583mn). The term loan had a moratorium of 15 months and had a repayment schedule of 44 quarterly installments. The lead arranger of the loan was SBI Capital Markets and the participating bank was State Bank of Patiala. Construction started in August 2012 and 21MW of the 30MW Phase-I was commissioned in March 2013. Balance capacity was awaiting commissioning pending announcement of the Tariff regime in Rajasthan for Financial Year 2014-15.