Videocon Warora Solar Plant

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Videocon Industries Limited (a subsidiary of Videocon Group),signed an MoU with Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) for setting up a 5MW photovoltaic solar project at Warora in Mahrashtra. In July 2010, the project migrated from Generation Based Incentive (GBI) Scheme with MSEDCL to Jawaharlal Nehru Solar Mission (JNNSM). The output from the project would be fed to the western grid of India. Videocon had awarded the EPC to IBC Solar. In July 2010, Videocon 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 Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) to JNNSM. The APPC (Average Power Purchase Cost) as per MERC order, for projects migrated to JNNSM would be as per the rate agreed betwen NVVN and Videocon 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. As per MERC (State Regulator) Regulation, Videocon would retain the gross benefits of CDM. Transmission and/or wheeling charges would be paid by Videocon. Financial closure took place in January 2011.The total project cost was US$ 18.9mn (INR 852 mn @45 INR/USD).The debt equity ratio for the project was 72/28. Financing comprised of a 13 year term loan of US$ 13.5mn (INR 610mn @ 45INR/USD) and sponsor equity of US$ 5.4mn (INR 242mn @ 45INR/USD). IDFC 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.