Wardha Power Company (WPCL)

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Wardha Power Company (WPCL) was created to develop and operate a 540 MW coal based power plant which comprises four units of 135 MW each to be developed in two phases. This power project was situated in Maharashtra Industrial Development Corporation (MIDC), Warora, District Chandrapur, Maharashtra. WPCL, is a Special Purpose Vehicle (SPV) promoted by KSK Electricity Financing India Pvt. Ltd. (KEFPL), a wholly-owned subsidiary of KSK Energy Ventures Ltd (KEVL). KEFPL holds 74% stake in the Warora project, while the balance 26% stake is held by Viraj Profiles Limited (VPL). KSK Group held 87% of the Equity of Wardha Power Company Limited and the balance equity was held by various Industrial Consumers who are expected to undertake power consumption collectively from Unit 3 and 4 of the Power station. Entire power generated from the first two units was to supply Maharashtra State Electricity Distribution Company under a short term PPA. In May 2010, WPCL received a letter of intent from Maharashtra State Electricity Distribution Company for firm procurement of power in excess of 290MW for the period from April 2011 to March 2014 at an average tariff of Rs.5.09. In 2010 WPCL had already contracted power supplies on long term basis, from the balance available capacities from the other units (III and IV), expected to go on stream in early 2011. The entire power generated by Phase I of the project (270 MW) would cater to the upcoming steel project of VPL - an Export Oriented Unit (EoU) being set up in MIDC, Thane. The power off-take from Phase II of the project was also tied up through long-term PPAs with different companies for their captive consumption/ upcoming projects. The project became operational in 2010 with the first 135 MW unit became operation in May 2010, the second in August 2010, and the third one in January 2011. The company entered into an agreement with Gujarat Mineral Development Corporation (GMDC) for coal requirement for the entire capacity from coal blocks located at Korba (Chhattisgarh). Land acquisition of the required 144 hectares for the project was complete in 2009. The power generated from the plant is proposed to be evacuated to the proposed 220-kV Wani Substation for which WPCL has obtained approval from the Maharashtra State Electricity Transmission Company Limited (MSETCL). The total project cost was estimate at US$528.3 million (Rs 2,416 crore). The three financial institutions, Rural Electrification Corporation (REC), Hudco, and Indian Overseas Bank (IOB) agreed to fund Rs 555 crore, Rs 233 crore and Rs 100 crore respectively for the project. The debt for the project was secured while the equity portion would be infused by KEFPL and VPL in the ratio of 74:26.