GE Energy invests $42m in India hydro-electric project
GE Energy Financial Services India has committed INR2.5 billion ($42.5 million) to a hydro-power project in north-east India operated by Gati Infrastructure (GIL). The investment was made through a share subscription agreement, for an undisclosed stake.
The 110 megawatt Chuzachen project in Sikkim state was built as part of a 35-year build-operate-transfer contract with the local government and Sikkim Power Development.
There have been delays in servicing of debt due to cost overrun and delay in project completion, which increased the total project cost from the original INR8.9 billion to INR11.8 billion.
The project, which harnesses water flow from the Rangpo and Rongli rivers, was commissioned in May this year, having originally been scheduled for 2009.
A power purchase agreement has been signed that will see Tata Power Trading Company purchase 85% of the actual generated power. GIL has to supply 12% of the saleable energy (after deducting auxiliary consumption and transmission losses) from the project free to the state for a period of 35 years.
The project's holding company, Amrit Jal Ventures, has two other hydro-electric power projects under construction in Sikkim - the 54 megawatt Bhasmey project and 71 MW Sada-Mangder project.
GE Energy has previously invested in TPG portfolio company Greenko Group to build $115 million of wind farms in India.
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