Bhubaneshwar Power Pvt Ltd

About the Company :

Bhubaneshwar Power Private Ltd (BPPL), is a joint venture company of JL Power Ventures Private Limited (Subsidiary of Jasper Industries Pvt Ltd, which is one of the first 16 dealers appointed by Tata Motors Limited in 1955 for their commercial and utility vehicles) holding 74% of stake in the Company and Tata Steel Limited and TS Alloys Limited together holding remaining 26% stake in the company. BPPL has set up a 2 x 67.5 MW coal fired thermal power plant adjacent to the existing Ferro Chrome Plant of TS Alloys Limited at village Anantpur, district Cuttack in the state of Odisha. The project is located in 120 acres of land. The project started commercial operation on 1st June 2016. All the statutory clearances such as Chimney Height Clearance from Ministry of Defence, Environment Clearance from MoEF, Boiler License, and consent to operate for the power plant are in place. The Company has installed CFBC boilers, which allows them to use lower grade coal also.

The company had signed long term Power purchase agreement (PPA) for captive consumption with Tata Steel Ltd and TS Alloys Ltd on 26th June, 2014 for sale of 79 MW (net). The power tariff will be charged broadly based on the methodology prescribed in PPA. The company has kept the option of trading the remaining power outside but the Tata Steel Ltd and its subsidiaries are also willing to purchase the remaining power at differential price. [15 MW is the estimated auxiliary consumption]. The company has entered into a Fuel Supply Agreement with Mahanadi Coalfields Ltd, Odisha for a linkage coal quantity of 687000 MT per annum, which would take care of its 70% of the coal requirements. The balance coal requirement is expected to be met from coal washery rejects. The company has entered into O&M contracts with Operation Energy Group (OEG). The initial estimated Project Cost was Rs 769 Crores with debt equity ratio of 75:25. Upon commissioning of the plant, the Project Cost has finalized at Rs 974.49 Crores (with certain increase in the capital expenditure).

The company has requested Lenders to fund this increase in project costs to the extent of 75% of the same (i.e., Rs 40.11 Crs), and the remaining funds are being brought in by the promoters as unsecured loans. Presently, the Project Cost of Rs. 974.49 crs, out of which Rs. 921 crs is funded by Term Loans to the extent of Rs. 690.75 crs and Promoters Equity Contribution of Rs. 230.25 crs. The balance project cost of Rs. 53.49 crs is proposed to be funded by Term Loans to the extent of Rs. 40.11 crs and by way of unsecured loans from promoters of Rs 13.38 crs.