Engineering and construction major, L&T, has bagged a ₹352-crore contract for building a 100 MW solar plant for the Bengaluru-based Raasi Green Earth Energy Pvt Ltd. The plant is coming up in Ramanathapuram district of Tamil Nadu.
The plant will be commissioned by September, C Narasimhan of Raasi Green told
Raasi will supply the power generated by the plant to the State’s electricity distribution utility, Tangedco, at a tariff of ₹3.47 a kWhr, for 25 years, Narasimhan said.
The plant will be connected to the Kavanur substation near Paramakudi.
Delay in payment
The project is funded by a ₹302-crore loan from the government-owned finance company, REC Ltd (formerly, Rural Electrification Corporation Ltd), which is charging Raasi 10.45-per cent interest.
Asked if the interest rate is high, Narasimhan observed that finance companies factor in the delay in payments by Tangedco.
A power purchase agreement with Tangedco is seen carrying a higher risk, and therefor,e the rating agencies do not give top ratings to those who supply energy to Tangedco.
However, in order to bring down the cost of funds, Raasi has roped in a US-based company as an equity partner.
The American company will also chip in with some debt funds.
Moreover, Raasi plans to raise funds through an issue of green bonds, for which it is being advised by KPMG.
The quantum of funds to be raised through the bonds is yet to be decided.