Torangallu Ext. Power Project

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The Torangallu Ext. Project was a 600 MW (2 units of 300 MW each) coal based power plant located in Vijayanagar in the state of Karnataka. The project was being developed by JSW Energy Limited (JSWEL). JSWEL had formed a special purpose vehicle JSW Energy Vijayanagar Limited (JSWEVL) for the implementation of this project. JSWEVL proposed to sell power generated from this project by way of a long-term PPA with JSW Steel Limited (JSWSL) for 300 MW, a long-term PPA with JSW Cement Limited (JSWCL) for 6 MW and short-term PPAs for the balance with JSW Power Trading Company Limited (JSWPTCL), a power trading company which was part of the JSW Group. JSWEVL had entered into a power off-take agreement with JSWSL on September 21, 2006 to supply power for a period of 10 years from the date the project achieved commercial operation. Under this PPA, JSWSL was required to purchase 300 MW of capacity from the plant. JSWEVL had entered into a power off-take agreement with JSWCL on November 13, 2006. The term of this agreement was 10 years. Under this PPA, JSWCL was required to purchase 6 MW of capacity from the plant. The balance of available power from the power plant was to be sold to JSWPTC under short-term PPAs. The project was estimated to cost USD 465 million and achieved financial closure in November 2006. A consortium of banks with IDBI Bank Limited in the lead provided the debt required for this project. The project achieved commercial operation on 1st September 2009 as per state regulator database. JSWWEL's current ownership in the project is 70.15%. This would increase to 74% upon completion of the project in accordance with the power purchase agreement.