BEL gets IRs 6.63bn for hydel project in Nepal

Bhilwara Energy Ltd (BEL) — the flagship entity of LNJ Bhilwara Group in Indian power sector business — announced that its 120 MW Likhu IV Hydro Electric Project has received thumbs up from a consortium of Indian and Nepali banks that have pledged IRs 6.63 billion. IDBI Bank Ltd is the lead bank with other — Oriental Bank of Commerce, Punjab and Sind Bank, Exim Bank, PTC Financial Services and Everest Bank — members of the consortium. The 120 MW Likhu IV Hydro Electric Project is being developed by a SPV of Bhilwara Energy Ltd. The SPV is registered in Nepal and is a joint venture Company with Triveni Energy. “It would be the Group’s first overseas venture in Hydro Electric space,” BEL managing director Riju Jhunjhunwala said, adding that the company is proud to be first amongst Indian power developers to have taken up steps for development of Hydro Power potential of Nepal and also to export power from Nepal to India. It would not only help Nepal in harnessing of its hydro power potential and address its own growing needs of power but also help India in terms of supply of much needed power,” he said, adding that the SPV Company has already acquired over 90 percent of the required project land and started preconstruction activities. The LNJ Bhilwara Group , having financial capacity as well as technical expertise, is fully geared up to take up the project construction in full swing very soon and quite hopeful to commission it within given time schedule. The total capital out lay for the project is IRs 10.2 billion,” BEL CEO O P Ajmera, said, adding that IDBI Bank was mandated for syndication of loans. According to Nepal-India Cooperation on Hydropower (NICOH), current estimates are that Nepal has an approximately 42,000 MW of economically feasible hydropower potential. However, the present situation is that Nepal has developed only approximately 600 MW of hydropower. “A bulk of the economically feasible generation has not been realised yet,” Jhunjhunwala added. LNJ Bhilwara Group is among the pioneers of hydro power generation in India and had established the first hydro-power project financed by World Bank’s lending arm International Finance Corporation (IFC). Between its two Group companies in Malana Power Company Ltd and AD Hydro Power Ltd, it has an installed capacity of about 300 MW. “While work on another 800-MW hydro power project in Tawang of Arunachal Pradesh is already underway,” said the Group that is also venturing into wind power generation with modest beginning to set up 50 MW wind farm in Satara district of Maharastra state. “It is likely to be commissioned by March.” The company currently has two Hydro Power Projects in operation; one 86 MW and another 192 MW. BEL holds 51 per cent equity stake in Malana Power Company Ltd (Kullu), a joint venture with S N Power, Norway. It holds 44.9 per cent holding of AD Hydro Power Ltd (Manali) indirectly, since MPCL holds a 88 per cent stake in AD Hydro Power Ltd and remaining 12 per cent equity is with IFC, Washington. Source: THT