Vishnuprayag Hydroelectric Project

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Jaiprakash Power Ventures Ltd. (JVPL) undertook the development of 400 MW Vishnuprayag Hydroelectric Project (VHP) on Alaknanda river, in Chamoli district in Uttaranchal State, on build-own-operate (BOO) basis. The power generated from this project was to be sold to Uttar Pradesh Power Corporation Ltd (UPPCL), a transmission and distribution utility operating in Uttar Pradesh State, under a 30 year power purchase agreement (PPA). The project consisted of 4 generator units, each producing 100 MW each. This hydroelectric plant was designed to be a "run of the river" scheme and did not require any storage facilities like dam or reservoir. JPVL, a special purpose company, was a wholly owned subsidiary of India’s Jaiprakash Associates Limited. The total cost of the project was estimated at US$ 408 million. The project reached financial closure in 2003 with a debt equity ratio of 70:30. The project debt consisted of rupee term loans (US$ 253.65 million) and foreign currency loans (US$ 32 million). JVPL signed the PPA with UPPCL in September 2002. This PPA was guaranteed by Uttar Pradesh State government for payment obligations of UPPCL. The 30 year term of the PPA began from the date of commercial operation of the last unit. Under the PPA, 12% of the total power generated was to be supplied to Uttaranchal State for free. Construction works began in 2003 and the project was expected to be commissioned in June 2006.