HINDUJA NATIONAL POWER CORPORATION

LIMITED (Hinduja Power Plant)

Introduction:

Hinduja National Power Corporation Limited (HNPCL) is a Hinduja

Group company to realize the ambitions of the Group in Power Sector. The site
is located on the coast of the Bay of Bengal at Pavalavasa, Parawada Mandal,
and Visakhapatnam District in the State of Andhra Pradesh. The company is
head quartered in Mumbai with its registered office in Hyderabad. Generate
power of 10000 MW, with an investment of $10 billon.

Background:
The proposed power station would comprise two units, each of 520 MW.
The plant has been the locus of controversy including large protests in 2011. In
November 2011, the Ministry of Environment and Forests decided to defer the
coastal regulation zone approvals to the project following alleged violations by
the company. Nearly two decades after its proposal, the power station is
expected to be commissioned by the end of 2014.
In October 2014 it was reported that the first unit would be
commissioned in December 2014, and the second in January-February 2015
Capacity:
The planned capacity of the power plant in 1040 MW (2x520 MW) and one unit
is already commissioned. Unit 1: 520 MW and Unit 2: 520 MW

Investment ratio and funding:

Here this power plant goes raised funds in the form of equity as well as
debt, out of which 25% of its investment is in the form of equity and remaining
75% is through debt. Its approximate funds are Rs.5500 crores. And a few of
the funds are through private equity.

Full overview of Hinduja power plant:

Hinduja National Power Corporation Limited (HNPCL) has commissioned its
1,040 MW coal fired thermal power project located near Visakhapatnam. Ashok
Puri is the managing director for this plant. The company has commissioned
2x520 MW thermal power plants and expects it to cater to the increasing
demand for electricity in Andhra Pradesh, which has become the first southern
State to become power surplus.

Currently both the units are in operation. The entire power generated by
project is being given to State-owned Southern and Eastern Power Distribution
Companies of Andhra Pradesh. It will primarily cater to the growing power
needs of the rising industrial demand in and around the city of Visakhapatnam
and the Southern Region, which includes some of the fastest growing
economies in the country, he said.

Andhra Pradesh is implementing 24X7 Power for All Scheme. The State
had initiated the power sector reforms in 1998 and now has a total installed
capacity is 15,311 MW. It is aiming at achieving 29,000 megawatt installed
capacity by 2019. Part of the Hinduja Group, Hinduja National Power
Corporation Limited, has set up this Greenfield 1,040 thermal power plant on
the coast of Bay of Bengal at Palavalasa village in the Visakhapatnam district of
Andhra Pradesh.

Bharat Heavy Electricals Limited has been the main EPC contractor for
the project. The $1.25 billion project has 100 per cent coal allocation from
Mahanadi Coalfields Ltd. It has a mix of debt and equity where State Bank of
India led consortium of 15 Indian banks have backed it as lenders to the
project.Identifying the power sector as a growth area, the Hinduja Group has a
vision to create generation capacity of 10,000 MW over the next few years with
an expected investment of around $ 1214 billion. These projects will be
diversified in terms of geographic location, technology, fuel type and fuel
source.