IDCOL: Renewable Energy Projects

Projects

Large & Medium Infrastructure Projects

Renewable Energy Projects

Initial Requirements- Pre-Proposal Submission Stage

Eligibility criteria for sponsors

Basic requirements (See the guideline from the main menu for details)

Project land : The minimum land required for installing the equipment and machineries is 5 to 7 decimal.
Minimum equity : The Sponsor should be capable of injecting 20% of the project cost upfront in the form of equity.
Collateral : The Sponsor is required to provide collateral in the form of land, including project land, and/or bank guarantee securing the loan amount.

Suitability criteria for irrigation land (See the guideline from the main menu for details)

The project must be located in any of the Upozillas as listed by IDCOL(Solar Irrigation Pump Coverage)
The project site must be located in an off-grid area
The land must be suitable for producing 3 crops per year
The groundwater must be free from arsenic and saline water
The land area must be above the flood level and it should not be flooded during the monsoon
The maximum depth of the groundwater level should be 20 meter from the land surface or the land should be located adjacent to surface water bodies i.e. river, canal, etc that are available throughout the year

*The suitability of the site will be physically verified by IDCOL after submission of proposal by the sponsor.

Financing plan

Financing arrangement: The project will be financed based on debt, equity and grant ratio of 40%:20%:40%
Terms and conditions of the debt facility:

Security package

Mortgage of project land or mortgage of leasehold interest on project land
Mortgage of additional land and/or bank guarantee securing the loan amount
First priority floating charge by way of hypothecation of all movable and floating assets including accounts receivables of the project
Irrevocable General power of Attorney in favor of IDCOL to collect the proceeds of performance guarantee, proceeds under project agreements, and proceeds under insurance policies
Irrevocable General power of Attorney in favor of IDCOL to sell the mortgaged land
Irrevocable General power of Attorney to sell the hypothecated assets under fixed charge
Irrevocable General power of Attorney to sell the hypothecated assets under floating charge
Corporate Guarantee, as applicable
Letter of Undertaking
Personal Guarantee of the members of the executive council of the organization/directors of the board of the borrower
Lien on Accounts
Lien on Share, as applicable
Post Dated Cheques
Demand Promissory Note and Letter of Continuity.

Collateral

As part of the security package, IDCOL must take mortgage or create leasehold interest on the project land.
Besides, the sponsor needs to propose additional land and/or bank guarantee for the combined worth to become equal to the loan amount. IDCOL may waive the requirement for providing collateral under subsequent loan applied for by an existing borrower. The collateral amount required to secure the loan portion will be decided by IDCOL from time to time.
The sponsor will arrange to conduct valuation of the lands to be provided as collateral by an independent surveyor to the satisfaction of IDCOL to derive the worth of the lands. Besides, IDCOL will seek legal opinion from the lawyers to assess the legal validity of the lands to be mortgaged.

Turnkey solution providers

Under IDCOL projects, suppliers provide technical solution to the project procuring, installing and commissioning the required equipment and machineries in the project site.
A supplier will be required to adequate experience and capability for being eligible to provide technical services under IDCOL financed projects.
The sponsors need to collect quotations from at least three such eligible suppliers and submit those to IDCOL.
IDCOL, following competitive process as well as in consultation with the sponsor, will select the supplier for providing technical solution to the project.
The quotations submitted by the suppliers must include :