Videocon Jodhpur Solar Plant

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In March 2009, Comet Power Private Limited (a subsidiary of Videocon Group),signed an MoU with Rajasthan Renewable Energy Corporation Limited (RREC) for setting up a 5MW photovoltaic solar project at Jodhpur district of Rajasthan. In July 2010, the project migrated from Generation Based Incentive (GBI) Scheme to Jawaharlal Nehru Solar Mission (JNNSM). Comet had acquired land for the project. The output from the project would be fed to the northern grid of India. Comet had awarded the EPC to ICB Solar. In July 2010, Comet had entered into a 25-year Power Purchase Agreement with NTPC Vidyut Vyapar Nigam (NVVN), which was the the nodal agency to purchase solar power generated by independent solar power producers, under the Jawaharlal Nehru Solar Mission (JNNSM). Please note that this project had been transferred from Generation Based Incentive (GBI) Scheme to JNNSM. The APPC (Average Power Purchase Cost) as per the Rajasthan Solar Policy 2011, for projects migrated to JNNSM would be as per the rate agreed betwen NVVN and Comet as per guidelines of Ministry of Renewable Energy (MNRE), details of which could not be ascertained at the time of collection of this information. The total capacity of 5MW was eligible for carbon credits. Comet Power would pass on the gross benefits of CDM to the distribution licensee (NVVN). Transmission and/or wheeling charges would be paid by Comet Power. Financial closure took place in January 2011.The total project cost was US$ 19.1mn (INR 839 mn @45 INR/USD).The debt equity ratio for the project was 72/28. Financing comprised of a 13 year term loan of US$ 13.8mn (INR 620mn @ 45INR/USD) and sponsor equity of US$ 5.3mn (INR 239mn @ 45INR/USD). IDBI Bank was the sole arranger of the term loan which had a repayment schedule of 44 quarterly installments.The Asian Development Bank (ADB) also provided a Partial Credit Guarante (PCG) for these projects under JNNSM. Construction for the project started in January 2011 and commercial operation was expected to start in October 2011.