Jaiprakash Hydro-Power IPO Details

Incorporated on December 21, 1994 as Jaiprakash Hydro-Power Limited, the company is engaged in the generation and supply of hydroelectric power through a 300 MW run-of-the-river hydro-electric power plant located on river Baspa, a tributary of river Satluj, in Kinnaur District, Himachal Pradesh. The Power Plant is the largest hydroelectric plant commissioned in the private sector in India.
The Power Plant was implemented on a Build, Own and Operate basis pursuant to an Implementation Agreement executed between the Government of Himachal Pradesh and the company's promoter, Jaiprakash Associates Limited. Commercial operations commenced with effect from June 8, 2003 at a total project cost of Rs. 16,247.20 million. The plant is designed to produce electrical energy of 1,213.18 million units annually based on a 90% dependable year, with the barrage located at an elevation of 2,520.50 metres above sea level, one of the highest altitudes for such structures in India.
The company operates under a Power Purchase Agreement with the Himachal Pradesh State Electricity Board for an initial period of 40 years from the date of commercial operation, extendable by a further 20 years. Under the agreement, 88% of the power generated is sold to HPSEB at an approved tariff, while the balance 12% is supplied free of cost. The agreement provides for assured off-take, fixed return on equity at 16% per annum, reimbursement of fixed and variable costs, and payment security through an escrow mechanism and irrevocable letter of credit backed by a Government of Himachal Pradesh guarantee.
The Power Plant, comprising three units of 100 MW each, uses Pelton turbines supplied by the Siemens AG consortium and gas insulated switchgear supplied by Alstom T&D, France. As of September 30, 2004, the company had a workforce of 194 employees.