"Our business model is based on the following Financial Assumptions"
| Project Cost Estimate Particulars | Rs. Mn |
|---|---|
| Land | 5.63 |
| Civil works | 36.00 |
| PV Modules | 252.00 |
| Module mounting structure | 45.00 |
| BOS including Combiner Box, | 76.50 |
| Invertors, data logging System etc. | |
| Transmission Line (12 km) | 8.10 |
| Terminal equipments at evacuation point | 5.40 |
| Prel. & Pre Operative Expenses | 3.38 |
| Interest During Construction (IDC) | 13.50 |
| Working Capital Margin (WCM) | 4.50 |
| Total | 450 |
| Assumptions | Unit | Value | Data source |
|---|---|---|---|
| Installed capacity | MW | 5 | Proposed originally |
| Working days | Days | 365 | Industry Norms |
| Plant load factor | % | 18.65% | Commitment from vendor |
| Average capital cost/MW | INR | 90 million | Assumed |
| O&M expenses | INR million | 1.16 | CERC Re tariff regulation 2013 |
| Equity investment | % | 30 | Assumed |
| O&M expenses (on project) | % | 26 | CERC Re tariff regulation 2013 |
| Escalation in O&M | % | 5.72 | CERC RE tariff regulation 2013 |
| Panel output degradation( P.A.) | % | .80 | Vendor commitment |
| Interest on term loan | % | 13 | CERC RE tariff regulation |
| Loan repayment period/years | Year | 12 | As per assumption workings |
| Book depreciation rate( weighted average) | % | 3.6 | CERC RE tariff regulation |
| Book depreciation limit | % | 90 | |
| Depreciation as per IT act - WDV | % | 15 | As per IT act for calculations |
| Income tax regular | % | 32.45 | Budget 2010-2011 (India) |
| Minimum alternate Tax | % | 20.01 | Budget 2010-2011 |
| Incentive | |||
| Tax holidays | Year | 10 | Under IT section 80IA |
| Energy Generation | |||
| Generation | GWHorMU | 18.1687 |
Tariff structure assumptions – Renewable energy certificate + APPC
| Year | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
| Appc/INR unit | 2.37 | 2.49 | 2.61 | 2.74 | 2.88 | 3.02 | 3.18 | 3.33 | 3.50 | 3.68 | 3.86 |
| Rec/INR/unit | 9.30 | 9.30 | 9.30 | 9.30 | 9.30 | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 | 5.00 |
| Total cost | 11.6 | 11.7 | 11.9 | 12.0 | 12.1 | 9.02 | 9.18 | 9.33 | 9.50 | 9.68 | 8.86 |
| INR/UNIT | 7 | 9 | 1 | 4 | 0 |
With the above Technology selection and Financial Assumptions our Project IRR is 15.01% and our Equity IRR is 18.90%
