MoP directs PFC, REC to arrange short-term loans for imported coal-based plants under stress
The Ministry of Power (MoP) has directed the Power Finance Corporation (PFC) and REC Limited to take the necessary action to arrange short-term loans for a period of six months with adequate safeguards, for imported coal-based (ICB) plants, which are under stress or in the National Company Law Tribunal (NCLT), at the earliest. These plants need working capital to buy coal and start generating power in order to restart their operations. In view of the increased demand and unprecedented pressure on domestic coal supplies, the MoP, on May 5, 2022, issued directions to all ICB plants to operate and generate power to their full capacity, even for projects that are stressed or under NCLT. These directions will ensure that additional electricity is produced through imported coal and will be a net addition. These directions will be effective up to October 2022.
NTPC to raise Rs 15 billion via NCD issuance
NTPC Limited has decided to issue unsecured non-convertible debentures of Rs 15 billion on April 29, 2022, through private placement at a coupon rate of 5.78 per cent per annum with a door-to-door maturity of two years. The proceeds will be utilised for, inter alia, funding of capital expenditure, refinancing of existing loans and other general corporate purposes. The debentures are proposed to be listed on the Bombay Stock Exchange.
Torrent Power acquires 50 MW solar power plant from SkyPower Group
Torrent Power Limited has entered into a share purchase agreement with SkyPower Southeast Asia III Investments Limited and SkyPower Southeast Asia Holdings 2 Limited for the acquisition of 100 per cent securities of the special purpose vehicle (SPV), Sunshakti Solar Power Projects Private Limited. The SPV operates a 50 MW solar power project in the state of Telangana. Northern Power Distribution Company of Telangana Limited holds a long-term power purchase agreement from the project for a period of 25 years, at a fixed tariff of around Rs 5.35 per kWh, with a remaining useful life of approximately 20 years. The enterprise value for this acquisition is around Rs 4.17 billion, subject to closing price adjustments, if any.
Powergrid to buy IL&FS Energy Development Company’s stake in CPTCL
Power Grid Corporation of India Limited (Powergrid) will purchase IL&FS Energy Development Company Limited’s (IEDCL) equity shareholding in Cross Border Power Transmission Company Limited (CPTCL). According to a regulatory filing, the company’s board has cleared the proposal for the purchase of 7.73 million equities of IEDCL in CPTCL. Currently, Powergrid owns 26 per cent stake in CPTCL, while IEDCL, SJVN Limited and the Nepal Electricity Authority own 38 per cent, 26 per cent and 10 per cent stakes respectively.
Powergrid acquires SPV KNTL for Rs 225 million
Pursuant to its selection as the successful bidder under tariff-based competitive bidding, Powergrid has acquired 100 per cent equity of Khetri-Narela Transmission Limited (KNTL) for an aggregate value of around Rs 225 million. KNTL is a project SPV to establish the transmission system for the Transmission System Strengthening Scheme for Evacuation of Power from Solar Energy Zones in Rajasthan (8.1 GW) under Phase II Part G, on a build-own-operate-maintain basis from the bid process coordinator – PFC Consulting Limited. The transmission system is an ISTS project and is to be completed in 18 months.
NTPC invites bid to raise Rs 50 billion via term loan to fund capital expenditure
NTPC Limited has invited bids for raising a term loan of up to Rs 50 billion. The proceeds of the loan will be utilised towards capital expenditure for ongoing or new capacity addition programmes, including the takeover of projects, renewable energy projects, coal mining and washeries, renovation and modernisation programmes of various projects, refinancing of loans and general corporate purposes. The minimum amount of loan offered by banks or financial institutions will be Rs 5 billion and in multiples of Rs 5 billion. The bids will be opened on May 27, 2022.
Rays Power Infra sells assets worth over Rs 7 billion to global investors
Rays Power Infra Private Limited has sold its solar projects in Tamil Nadu, Karnataka and Telangana to two global investors, at an aggregate enterprise value of over Rs 7 billion. Post the portfolio sale, Rays Power Infra has become completely debt-free with additional cash to boost its next phase of green energy development. The sold assets had a debt worth approximately Rs 4 billion and EBITDA of Rs 950 million. These were high-tariff, well-performing assets commissioned between 2017 and 2020. These transactions have enabled the company to raise enough capital to support its future growth.
Scatec refinances 39 MW wind farm in Vietnam
Norway-based Scatec ASA has refinanced $37 million of non-recourse project debt for its Dam Nai wind farm in Vietnam. The refinancing operation, facilitated by Vietcombank, enabled Scatec to achieve improved project return through a reduced interest margin and a covenant relief, allowing for an immediate cash distribution of $6 million. Dam Nai is a 39 MW wind farm located in Ninh Thuan province. Scatec owned the wind farm after acquiring SN Power from Norfund, the Government of Norway’s investment fund for developing countries, in early 2021. Dam Nai was SN Power’s first wind energy investment.