Wind Power Project
Injecting a major funding booster for the wind power sector, CLP India, which is one of the largest foreign investors in the nation's power sector, has inked an innovative financing model with its lenders for its 1,000 MW wind energy portfolio. Initially, the model will cover four operational projects totaling 267.5 MW, for which it has targeted to invest worth Rs 850cr. Six more projects are expected to be the framework later. Unlike the common industry model where multiple lenders, through a lead banker, fund individual mega projects, this model brings multiple lenders together to fund a portfolio of projects, said Hemant Joshi, Senior Vice-President, Corporate Finance & Treasury. As of now, it has a 655 MW gas fired power plant at Bharuch, Gujarat, besides a 1,320 MW supercritical coal-fired plant at Jhajjar, Haryana. It is also one of the largest wind power generators in the country with about 500 WW of wind power plants operational and expects to have 1000 MW on stream in 12-18 months as the model, called 'pooled finance', is for 10 projects spread across six states.

Elaborating further he said that under the new financing mode, the lenders — Standard Chartered Bank, IDBI Bank, and IDFC — have agreed to have a single account with StanChart, wherein the company will pool the cash flows from four projects. The cash flows will be accessible to all lenders. The bankers being existing lenders of the projects, will continue to hold charge over the individual project assets. The pooling ensures the vagaries of weather, which affect output, do not derail commitments. It will also ensure that if one s/b firm does not fare well, the cash flows from others will even out the shortfall. The model will help attract new lenders, particularly ECB (external commercial borrowing), as distribution of surplus cash will be at the pool level instead of project level, he added.