Untitled - Ministry of Power

e deducted from the Capital Cost of the Project.
Further, additional cost of Rs. 38.41 crores is
to be added to the Capital Cost of the Project
for extension of the Cut and Cover Conduit/Tunnel
of the Silt Flushing system by about 1021 m
(existing Cut & Cover – 450 m, extension of Cut
& Cover- 650 m and the Tunnel portion –371 m).
Financing Details
Funding Plan
The Project is being financed on 1 : 1 debt
equity ratio. The equity portion is to be shared
between the Govt. of India ( GOI ) and Govt. of
Himachal Pradesh (GOHP) in the ration 3 : 1
respectively. The GOI and GOHP has contributed
Rs. 3081.61 Crores and Rs. 963.90 Crores as
Equity contribution as on end March 2004.
Loans
The World bank had sanctioned a loan of US $
437 million through Govt. of India for part financing
the 1500 MW NJHEP. SJVN had utilized the
World Bank loan component to the tune of
equivalent INR Rs. 1537.90 Crores till the loan
closing date as on end March 2002. The loan
carried a high interest rate ranging between 14.5
% to 17 % per annum. Taking advantage of
favorable market conditions, SJVN raised the
equivalent amount at very low interest rates in
the domestic market. The amount so raised has
been used by the Company to prepay the World
Bank loan and has thus reduced the cost of
borrowings by more than 6 % per annum. This
would result in a saving of Rs. 90 Crores in the
borrowing costs in the very first year and
approximately Rs. 500 Crores over the entire
loan period. This is a significant step on the
part of the Corporation to reduce the Interest
burden and consequently lower the tariff,
the benefit of which shall be enjoyed by the
large number of consumers.
Additional commercial foreign currency loans
(External Commercial Borrowings – ECBs)
equivalent to Rs. 791.99 Crores for Electro-
Mechanical Packages from various European
Commercial Banks were also raised. The
repayment of External Commercial Borrowings
(ECBs ) loans has also been made to the tune
of Rs. 357.36 Crores as on end March 2004.
Besides, first loan of Rs. 1118 Crores was also
raised from the Power Finance Corporation ( PFC)
in addition to the second loan sanction for Rs.
750 Crores, out of which Rs. 320.00 Crores has
also been utilized.
NJHEP Project Execution Status ( As on end
March 31, 2004 ) :
Physical :
The first Unit of 250 MW of NJHEP i.e. Unit
# 5 was synchronized with the grid at 15:20
hrs on September 20, 2003 and was
declared under commercial operation w.e.f.
October 06, 2003.
The second Unit of 250 MW of NJHEP i.e.
Unit # 6 was also synchronized with the grid
at 15:05 hrs on November 23, 2003 and
was declared under commercial operation
w.e.f. January 02, 2004.
The third Unit i.e. Unit # 4 was also Test
synchronized ( Test Loaded ) with the grid
on January 22, 2004 and was declared under
commercial operation w.e.f. March 30, 2004.
The Fourth Unit i.e. Unit # 3 was also Test
synchronized ( Test Loaded ) with the grid
on February 13, 2004 and was declared under
commercial operation w.e.f. March 31, 2004.
The Fifth Unit i.e. Unit # 2 has also been
successfully spun on February 24, 2004 and
Test Synchronized ( Test Loaded ) on March
09, 2004.
The Sixth Unit i.e. Unit # 1 has also been
successfully spun on March 15, 2004 and Test
Synchronized ( Test Loaded ) with the Grid
on March 31, 2004 at 15:55 hrs.
Financial :
Against the Revised Estimate of Rs. 926.30
crores ( Rs. 819.39 crores for NJHEP, Rs.
5.10 crores for Rampur HEP / Project
Exploration Cell and Rs. 101.81 crores
towards repayment of loans - ECBs of
NJHEP ) for the financial year 2003-04, the
total financial expenditure for the financial
year 2003 – 04 is Rs. 930.10 crores ( Rs.
36.25 Crores have been received on account of
ICF facility provided to M/s JHPL and has to be
deducted from the total expenditure ). The
cumulative expenditure incurred as on end
March 2004 is Rs. 7995.08 crores in respect
of NJHEP, which is about 92.36 % of the
proposed Revised Cost Estimate - III (
RCE-III ) of NJHEP of Rs. 8656.61 * crores
at September 2002 price level and has
exceeded the approved Revised Cost Estimate
– II ( RCE – II ) of Rs. 7666.31 Crores at June
1998 Price Level.
Till March31,2004 NJHEP has generated 1195.94
MU’s ( i.e. Firm Power 1116.20 MU plus Infirm
Power 79.94 MU ) of Energy and Rs. 194.00
Crores have been realized as revenue.
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