The 60MW Rangit II scheme is to be developed on the Rimbi river, a tributary of the river Rangit, in the west district of the state of Sikkim, India. The project is being developed by GIP’s wholly-owned subsidiary Sikkim Hydro Power Ventures Ltd (SHPVL), which was set up for the scheme.
In 2005, the same year it was incorporated, SHPVL was awarded a build, own, operate and transfer (BOOT) concession for Rangit II totalling 41 years, which includes six years of project development (one year to achieve financial closure and five years for construction) and 35 years of operations.
The concession was awarded by the Government of Sikkim and the plant is due to begin operating in January 2011.
GIP has allocated sums of Rs250M (US$6.2M) for each of 2006-7 and 2007-8 to Rangit II from the IPO proceeds. Its total equity contribution is to be Rs1,300M (US$32.2M) over four years. The total project cost of the project is estimated at Rs4,200M (US$104M).
The Initial Public Offering (IPO) of shares in GIP is due to open on 10 March and close 13 March with a price band of Rs167-Rs200 per equity share.
GIP was formed in 2001 to develop infrastructure and energy projects on a public private partnership (PPP) basis. The firm is part of the Gammon Group.
