CENTRALELECTRICITYREGULATORYCOMMISSION

NEWDELHI

PetitionNo.35/2012(SuoMotu)

Coram:1.Dr.PramodDeo,Chairperson
2.ShriV.S.Verma,Member
3.ShriM.DeenaDayalan,Member

Dateofhearing:15.03.2012

DateofOrder:27thMarch,2012

INTHEMATTEROF
DeterminationofgenericlevellisedgenerationtariffunderRegulation8oftheCentral
Electricity Regulatory Commission (Terms and Conditions for Tariff determination from
RenewableEnergySources)Regulations,2012.

ORDER
1. The Central Electricity Regulatory Commission (Terms and Conditions for Tariff
determinationfromRenewableEnergySources)Regulations,2012,(hereinafterreferred
to as the RE Tariff Regulations) provide for terms and conditions and the procedure
for determination of tariff of the following categories of Renewable Energy (RE)
generatingstations:
(a)WindPowerProject;
(b)SmallHydroProjects;
(c)BiomassPowerProjectswithRankineCycletechnology;
(d)NonfossilfuelbasedcogenerationPlants;
(e)SolarPhotovoltaic(PV);
(f)SolarThermalPowerProjects;
(g)BiomassGasifierbasedPowerProjects;and
(h)BiogasbasedPowerProject.

[Typetext]

Page1

2. The Regulations enjoin upon the Commission to determine the generic tariff on the
basis of the suomotu petition, for the RE technologies for which norms have been
providedintheRETariffRegulations.GenericTariffisdifferentfromtheprojectspecific
tariffforwhichaprojectdeveloperhastofilepetitionbeforetheCommissionasperthe
formatprovidedintheRETariffRegulations.Pertinently,projectspecifictariffhasbeen
envisaged for the new RE technologies and the technologies which are still at the
nascentstageofdevelopment,andtheCommissionshalldeterminetheprojectspecific
tariffforsuchtechnologiesonacasetocasebasis.

3. Clause (1) of Regulation 8 of the RE Tariff Regulations provides that the Commission
shalldeterminethegenerictariffonthebasisofsuomotupetitionatleastsixmonthsin
advance at the beginning of each year of the Control period for renewable energy
technologies for which norms have been specified under the Regulations. The
Commission has notified the RE Tariff Regulations on 06.02.2012. The Commission, in
due discharge of the mandate under Regulation 8(1) of RE Tariff Regulations has
determinedthegenerictariffoftheREprojectsforthefirstyearofcontrolperiod(i.e.
FY201213)throughthisOrder.

4. TheCommissionissuedOrderproposingDeterminationofgenericlevellisedgeneration
tariff under Regulation 8 of the Central Electricity Regulatory Commission (Terms and
ConditionsforTariffdeterminationfromRenewableEnergySources)Regulations,2012
(Petition No. 35/2012 (suomotu) dated 28th February, 2012 for inviting comments/
suggestion/objectionsfromthestakeholders.

5. TheCommissionvideitspublicnoticeno.(PetitionNo.35/2012(suomotu)dated29th
February, 2012 invited comments from the various stakeholders. In response to the
samewrittencomments/suggestionsreceivedfromfollowingstakeholders:

[Typetext]

Page2

Sl.
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25
26.
27.
28.
29.
30.
31.

NameoftheStakeholder
SathyamGreenPowerPvt.Ltd.
BharatGreenEnergyPvt.Ltd
TranstechGreenPowerPvt.Ltd.
HarsilHydroLtd.
DalkiaEnergyServicesLtd.
AshdenIndiaCollective
TranscarbEnergyPvt.Ltd.
KalpataruPowertransmissionLimited
IndianBiomassPowerAssociation
OrientGreenPowerCompanyLtd.
SanjogSugars&EcoPower(P)Ltd.
GlobalPowertechEquipmentsLtd.
ShriramPowergenLtd.
ShriramNonConventionalEnergyLtd.
AmritEnvironmentalTechnologies(P)Ltd.
PSRGreenPowerProjectsPvt.Ltd.
BiomassPowerProducersAssociation,Tamilnadu
SynergyShaktiRenewableEnergyLtd.
ETAPowergenPvt.Ltd.
MeritBiozenLtd.
AuroMiraBioPowerIndiaPvt.Ltd.
A2ZGroup
JalandharygadHydroPvt.Ltd.
SiyangadHydroPvt.Ltd.
KakoragadHydroPvt.Ltd
IndianWindPowerAssociation
GEEnergy
MaharashtraBiomassEnergyDevelopersAssociation
CogenerationAssociationofIndia
EnergyInfratechPvt.Ltd.
MinistryofNewandRenewableEnergy(MNRE)

6. Subsequently,apublichearingwasheldon15thMarch,2012andfollowingstakeholders
expressedtheirviews/suggestions/commentsinperson:
1.
2.
3.
4.
5.
6.
7.
[Typetext]

SathyamGreenPowerPvt.Ltd.
BharatGreenEnergyPvt.Ltd
TranstechGreenPowerPvt.Ltd.
SynergyShaktiRenewableEnergyLtd.
DalkiaEnergyServicesLtd.
KalpataruPowertransmissionLimited
JalandharygadHydroPvt.Ltd.
Page3

8.
9.
10.

SiyangadHydroPvt.Ltd.
KakoragadHydroPvt.Ltd
IndianWindPowerAssociation

7. TheCommissionhasanalysedtheviews/comments/suggestionsofthestakeholdersand
theCommissionsdecisionsareasbelow;

A.

GeneralPrinciples

I.

ControlPeriod

Comments:
Thecontrolperiodshouldbemade2yearsinsteadof3yearsfordeterminingBiomass
fuel prices. (Transtech Green Power Pvt. Ltd., Indian Biomass Power Association,
Orient Green Power Company Ltd., Sanjog Sugars & Eco Power (P) Ltd., Global
Powertech Equipments Ltd., Shriram Powergen Ltd., Shriram NonConventional
EnergyLtd.AmritEnvironmentalTechnologies(P)Ltd.,PSRGreenPowerProjectsPvt.
Ltd.,BiomassPowerProducersAssociation,Tamilnadu,ETAPowergenPvt.Ltd.)

Biomassfuelpricestobedeterminedannuallyandsamebepassthroughinthetariffas
suggestedearlierbytheMinistry.(MNRE)

Acontrolperiodof23yearsshouldbeconsideredduetocostescalationandvolatility
asinflationinIndiaisabout8%onanaverage.(IWPA)

Acontrolperiodoftwo(2)financialyearsismostdesirablewhichshouldbeappliedin
thisRegulation.(MaharshtraBiomassEnergyDevelopersAssociation)

AnalysisandDecision
TheRETariffRegulationsspecifytheControlPeriod.Thereviewofthesameisnotthe
subjectmatterofpresentregulatoryprocesswhichhasbeeninitiatedfordetermination
ofgenerictariffforFY201213.

[Typetext]

Page4

B.

FinancialPrinciples

I.

ReturnonEquity

Comments:
Normativereturnonequityshouldberevisedto24%reflectthehighermonetaryrates
prevailinginthemarketanditshouldincreaseproportionallywithincreasesininterest
ratesasisreflectedintheinternationallyacceptedCAPMmethod.(HarsilHydroLtd.)

Return on Equity may be considered at 24% considering the various risks involved in
setting up and operating SHP schemes in remote Himalayan sites. Also, during
constructionperiodthereisnilreturnonequityinvestedwhichshouldbecompensated
in subsequent period after commissioning. (Synergy Shakti Renewable Energy Ltd.,
MeritBiozenLtd.,AuroMiraBioPowerIndiaPvt.Ltd.)

AnalysisandDecision
TheRETariffRegulationsspecifytheReturnonEquity.Thereviewofthesameisnotthe
subjectmatterofpresentregulatoryprocesswhichhasbeeninitiatedfordetermination
ofgenerictariffforFY201213.

II.

RateofInterestontermloan

Comments:
Rateofinterestontermloanforbiogasbasedpowerprojectmaypleasebeconsidered
@14%fordeterminationoftariff.(BharatGreenEnergyPvt.Ltd.)

Applicable Interest rates currently in force are in the range of 1414.5% p.a. (Energy
InfratechPvt.Limited)

Theinterestratesforthetermloanareintherangeof15.5%to17%.(TranstechGreen
Power,ETAPowergenPvt.Ltd.,ETAPowergenPvt.Ltd.)

[Typetext]

Page5

SBI BPLR should be used as the normative interest rate. Otherwise, we urge CERC to
kindlyjustifythelowerinterestratesbyprovidinginformationon201112interestrates
being offered by IREDA for SHPs and the percentage of SHPs that qualify and receive
fundingfromIREDA.(HarsilHydroLtd.)

Suggested to specify the normative interest rate at the prevailing rate of 15.5 17%.
(Indian Biomass Power Association, Orient Green Power Company Ltd., PSR Green
PowerProjectsPvt.Ltd.,BiomassPowerProducersAssociation,Tamilnadu)

InterestrateforprojecttermloansshouldbedeterminedatSBIBaserateplusaspread
of300basispointsandforworkingcapitalloansatSBIbaserateplusaspreadof400
basispoints.(SynergyShaktiRenewableEnergyLtd.,MeritBiozenLtd.,AuroMiraBio
PowerIndiaPvt.Ltd.)

Interestratesarehigherforprojectloansandalsoforworkingcapitalthan12.3%and
12.8 % presently considered by CERC. Applicable lending rates to SHP projects may
pleasebetakenfromIREDA,SBIetctoreflectpresentscenario.(JalandharygadHydro
Pvt.Ltd.,SiyangadHydroPvt.Ltd.,KakoragadHydroPvt.Ltd)

InterestratemustbespecifiedatStateBankrateplus600basispointsaseventhebest
companieswithexcellentcreditratingareunabletogetat300basispoints.Twoyears
moratorium period in loan repayment should be considered. (Indian Wind Power
Association)

AnalysisandDecision
The RE Tariff Regulations specify the normative Rate of Interest on Term Loan. The
review of the same is not the subject matter of present regulatory process which has
beeninitiatedfordeterminationofgenerictariffforFY201213.

[Typetext]

Page6

III.

RateofInterestonWorkingCapital

Comments:
Rate of interest on working capital for biogas based power project may please be
considered @ 14.5% for determination of tariff. (Bharat Green Energy Pvt. Ltd.,
TranscarbEnergyPvt.Ltd.)

Thecurrentinterestrateforworkingcapitalisbetween15%to17%.(TranstechGreen
PowerPvt.Ltd.)

InterestonWorkingCapitalshouldbSBIRateplus600nbasispointsor14.5%.Someof
the states utilities are not making payment in time, it is suggested that 6 months
revenue should be considered for working capital instead of 2 months. Maintenance
@30%ofO&Mtobetaken.(IndianWindPowerAssociation)

AnalysisandDecision
TheRETariffRegulationsspecifythenormativeRateofInterestonWorkingCapital.The
review of the same is not the subject matter of present regulatory process which has
beeninitiatedfordeterminationofgenerictariffforFY201213.

IncaseofBiomassbasedgeneration,Interestonworkingcapitalhasbeentaken10.30%
insteadof12.80%.(A2ZMaintenance&EngineeringServicesLimited)

AnalysisandDecision
Commentshavebeennotedandincorporated.

[Typetext]

Page7

IV.

Depreciation

Comments:
In case of Non fossil fuel based generation, Depreciation after 12years has been
considered at 3.95% instead of 2.5%. (A2Z Maintenance & Engineering Services
Limited)

AnalysisandDecision
Commentshavebeennotedandincorporated.

V.

CDMBenefits

Comments:
The carbon credits generated are an incentive for the developers to install renewable
energyprojects;henceshouldberetainedbythegeneratingcompaniesandnotshared
with the beneficiaries. (Harsil Hydro Ltd., Jalandharygad Hydro Pvt. Ltd., Siyangad
HydroPvt.Ltd.,KakoragadHydroPvt.Ltd)

AnalysisandDecision
TheRETariffRegulationsspecifythemechanismofsharingofCDMbenefit.Thereview
of the same is not the subject matter of present regulatory process which has been
initiatedfordeterminationofgenerictariffforFY201213.

C.

WindEnergyProjects

I.

Capitalcost

Comments:
Commission should review the Capital cost assumptions for establishing tariffs as the
current higher efficiency MW class technology has an average CAPEX, significantly
higherthanKWclassmachines.(GEEnergy)

In case IDC and O&M charges is required to be borne by WEG the same should be
recovered through tariff mechanism and the capital cost should cover cost incurred
[Typetext]

Page8

upto interconnection and same should be specified at ` 633 Lakh/MW. (Indian Wind
PowerAssociation)

II.

CERCWindEnergytariff

Comments:
GEEnergysuggestedthatCERCtariffnormsshouldbeimplementedinallstates.

CERC should determine project specific tariff for repowering and offshore projects as
repoweringneedshigherincentivesasthedevelopershastoaccountfordismantlingof
the older turbines. For offshore wind turbines over project cost is significantly higher
becauseofturbinesizeandtechnology.(GEEnergy)

III.

RevisedWPDCUF

Comments:
GEEnergysupportstherevisedWindPowerDensity(WPDcharacterizationswebelieve
thatthiswouldspuradditionaldevelopmentinthewindenergysector.(GEEnergy)
CUFshouldberevisedasgoodwindzonesiteshasbeenutilizedandtheleftoverisonly
lowwindzone.TheCUFinTamilNaduislessthan19%forthepastyearswhereWPDis
300400W/M2.(IndianWindPowerAssociation)

AnalysisandDecision
TheRETariffRegulationspecifythenormativeparametersforwindenergyprojectsfor
determinationoftariffforFY201213.Thereviewofthesameisnotthesubjectmatter
of present regulatory process which has been initiated for determination of generic
tariff.

IV.

OtherSuggestionsfromIndianWindPowerAssociation(IWPA)

Mustrunstatusshouldbegiventowindenergyprojects.

Forecastingofwindenergygenerationwithinrangeof+/30%asperIEGC2010
isnotpossible.

[Typetext]

Page9

Persistence forecasting method should be adopted as it is a simple method

whereerrorsareintherangeof20%.

AnalysisandDecision
ThereviewoftheabovementionedassuggestedbyIWPAarenotthesubjectmatterof
presentregulatoryprocesswhichhasbeeninitiatedfordeterminationofgenerictariff.

D.

SmallHydroProjects

I.

CapitalCost

Comments:
Thecapitalcostofsmallhydroprojectsbetween525MW,locatedinthehillyregions
ofHP,UttarakhandandtheNorthEast,iscurrentlybetween`8croreperMWand`10
croreperMW.Requiringnewprojectstobefundedat`7.00croreperMWisunfair,
unrealistic, and completely ignores the financial reality of implementation. In the
absence of further project cost information, it is urged that CERC kindly revise the
Capital Cost norms upwards to ` 8.17 crore or otherwise kindly undertake further
investigationastotherealityonthegroundintermsofactualimplementationcosts.

Transmissionlinecostsshouldbeaddedseparatelytotheprojectcostdependingonthe
distance and the voltage of the line to be constructed. (Harsil Hydro Ltd., Synergy
ShaktiRenewableEnergyLtd.,MeritBiozenLtd.,AuroMiraBioPowerIndiaPvt.Ltd.)

ThecapitalcostforSHPinUttarakhand/HimachalandNEStatesofRs700lacs/Mwfor
525MW,and770lacs/Mwforupto5MWisextremelylowandnotreflectiveofpresent
capitalcostswhichareclosetoRs9croresto10crores/MW.Determinationofcapital
costs may please be done in consultation with reputed bodies like IREDA, AHECIIT
Roorkee, WRTDC Roorkee, UJVNL Ltd Uttarakhand, prominent consultants like Indo
CanadianConsultancyLtdNOIDA,HutarewDelhi,SMECGurgaonorothersimilar,and
[Typetext]

Page10

alsorecentlytakenupSHPprojectscostsmaybeobtained.Capitalcostdeterminations
maypleasebebasedonactualsupporteddataandjustifiedinmoredepthbeforefinal
fixation of tariff. The proposed tariff for SHPs needs to be duly revised to reflect the
increase in project capital cost from that proposed presently. . (Jalandharygad Hydro
Pvt.Ltd.,SiyangadHydroPvt.Ltd.,KakoragadHydroPvt.Ltd)

Further submitted that the MNRE Capital subsidy is a developer incentive and should
notbeusedforreducingtariff.Capitalsubsidyshouldgototheprojectdeveloperasno
equity return is being paid for project construction period of 3 years (i.e. date of
financialclosuredatetocommencementofgenerationdate.(HarsilHydroLtd.)
Capital subsidy benefits should be allowed to be retained by the developer to
mitigate his project risks. (Jalandharygad Hydro Pvt. Ltd., Siyangad Hydro Pvt. Ltd.,
KakoragadHydroPvt.Ltd)

TheCapitalCostandO&MexpensesarehigherinHimachalPradesh,Uttarakhandand
NorthEasternStatesascomparedtotheotherStates.However,thenettariffofthese
StatesislowerascomparedtoOtherStates.(EnergyInfratechPvt.Limited)

AnalysisandDecision
TheRETariffRegulationspecifythebasecapitalcostforFY201213.Thereviewofthe
base project cost of Small Hydro Power plant and consideration of the cost of
evacuation beyond the interconnection point, are not the subject matter of present
regulatoryprocesswhichhasbeeninitiatedfordeterminationofgenerictariff.

II.

O&MExpenses

Comments:
TheO&Mcostsareverylowandneedtobeatleast2.5%ofCapitalCostandadditionally
insurance cost of 1% allowed to cover natural disasters. As these SHP projects are
proposedinHimalayanregionwhichisunderhighseismic/earthqukezoneandproneto
natural calamities, due safeguard in form of insurance coverage is required to protect
[Typetext]

Page11

investment and bank exposure. 1% insurance for areas within seismic zone V may be
considered,with0.2%reductionforeachstagereductioninseismiczonearea(foregin
seismic zone IV insurance may be allowed at 0.8%).(Jalandharygad Hydro Pvt. Ltd.,
SiyangadHydroPvt.Ltd.,KakoragadHydroPvt.Ltd)

AnalysisandDecision
The RE Tariff Regulation specify the normative O & M expenses for FY 201213. The
review of the same is not the subject matter of present regulatory process which has
beeninitiatedfordeterminationofgenerictariff.

E.

Biomassbasedpowerplant(RankineCycleTechnology)

I.

BiomassPrice

Comments:
BiomasspricespecifiedforHaryana(`2635/toone)&Punjab(`2756/tonne)arehigher
thantheRajasthan(`2300/tonne).ThishasresultedintransportationofBiomassoutof
RajasthanandconsequentlythepricesofBiomassinRajasthanhavealsoreachedthat
level.ItisthereforerequestedthatthepriceofBiomassforRajasthanmaybetakenthe
sameasPunjab.(SathyamGreenPowerPvt.Ltd.)

There is volatility in fuel price and if correct fuel prices are not given, the developer
wouldstruggleandplantwouldstopashappeninginthecountry.Thereshouldbeclear
policy and guidelines of fixing the variable cost on fuel cost on annual independent
surveyeitherconductedbyCERCorMNRE.(TranstechGreenPowerPvt.Ltd.)

Requested to reconsider biomass fuel price considered for Rajasthan at ` 2756/tone

(sameasspecifiedfortheStateofPunjab)asagainstnotifiedat`2300Lakh/MWasthe
plantsarelocatedinborderingareasofotherstateslikePunjab,HaryanaandMadhya
Pradesh.ThefarmersandtradersinRajasthanwouldnaturallyliketosellthebiomass
wheretheygethigherprices.(KalpataruPowertransmissionLimited)
[Typetext]

Page12


Eauctionpriceofcoalless10%tobespecifiedasbiomasspriceasitisexpectedtobe
cheaper than coal by about 10%. The eauction prices are based on market forces of
demand and supply and decided by Coal India Ltd. in a most transparent manner.
(SathyamGreenPowerPvt.Ltd.)

The biomass fuel adjustment mechanism (FAM) should consider the base price
preparation and also the transporttin cost on "as fired basis" rather than "as received
basis".(IndianBiomassPowerAssociation,OrientGreenPowerCompanyLtd.,Sanjog
Sugars&EcoPower(P)Ltd.,GlobalPowertechEquipmentsLtd.,ShriramPowergen
Ltd., Shriram NonConventional Energy Ltd., Amrit Environmental Technologies (P)
Ltd., PSR Green Power Projects Pvt. Ltd., Biomass Power Producers Association,
Tamilnadu,,ETAPowergenPvt.Ltd.)

TheCommissionmayfixthebiomassfuelpriceconsideringtheactualmarketposition
and fix at ` 3800/tonne with an annual escalation of 10% p.a. (Maharashtra Biomass
EnergyDevelopersAssociation)

II.

EscalationinPriceofBiomass

Comments:
Theescalationinthepricesofcoalwhichhasgoneupbymorethan30%,whereasthe
formula considers only 5%. Commissions should allow fuel price adjustment on
quarterlybasis.

IndependentconsultantappointedbyRERCconcludedthattherewouldbeabout17%
and15%annualincreaseinthepricesofbiomassatthefarmersendinF.Y.201112and
201213.(SathyamGreen)

[Typetext]

Page13

III.

StationHeatRate

Comments:
SHRof4000isnotrealisticandpracticalandshouldbetakenas4400.(SathyamGreen
PowerPvt.Ltd.)

SHR for biomass power plants may be considered @ 4500kCal/kWh based on CEA
Report published in 2005. (Indian Biomass Power Association, Orient Green Power
Company Ltd., Sanjog Sugars & Eco Power (P) Ltd., Global Powertech Equipments
Ltd., Shriram Powergen Ltd., Shriram NonConventional Energy Ltd., Amrit
Environmental Technologies (P) Ltd., PSR Green Power Projects Pvt. Ltd., Biomass
Power Producers Association, Tamilnadu, Synergy Shakti Renewable Energy Ltd.,
Merit Biozen Ltd., Auro Mira Bio Power India Pvt. Ltd., ETA Powergen Pvt. Ltd.,
MaharashtraBiomassEnergyDevelopersAssociation,MNRE)

IV.

GrossCalorificValue

Comments:
NormativeGCVmaybetakenas3100Kcal/Kg.(SathyamGreenPowerPvt.Ltd.)

The GCV of fuel deteriorate on storage, the fuel has dust, sand and moisture. GCV as
feed basis is only between 2600 to 2800 kCal/kg. The GCV of Juliflora based plant is
around2800kCal/kg,whichhasbeenalsocapturedintheindependentsurveyofstate
government.(TranstechGreenPowerPvt.Ltd.,ETAPowergenPvt.Ltd.)

Itisrequestedthatthispeculiardifficultyincaseofbiomassstoragemaybeconsidered
andminimum2%lossesinstoragemaybeallowed.ItmaybementionedthatRREChas
allowed2%lossesonthisaccount.(SathyamGreenPowerPvt.Ltd.)

Thebiomassplantsaretobeoperatedwiththeminimummoisturecontentof2530%,
which affects the GCV to a level of 2600 to 2800 kCal/Kg on as fed basis. (Indian
BiomassPowerAssociation,OrientGreenPowerCompanyLtd.,SanjogSugars&Eco
[Typetext]

Page14

Power(P)Ltd.,GlobalPowertechEquipmentsLtd.,ShriramPowergenLtd.,Shriram
NonConventionalEnergyLtd.,AmritEnvironmentalTechnologies(P)Ltd.)

As per our experience, the average GCV (after taking into account losses due to
moisture ) is 200 kCal/kg on fired basis. (Synergy Shakti Renewable Energy Ltd. ,
MeritBiozenLtd.ETAPowergenPvt.Ltd.)

Biomassplantswillnotrunonsinglefuelandamixofwoodyandnonwoodybiomass
shallbeusedtofiretheplant.HencetheGCVofthefuelwouldbedependingonthe
percentage mix of fuel to be used for generation of power. (Maharashtra Biomass
EnergyDevelopersAssociation)

WhiledeterminingtheGCV,factorssuchasGCVdeteriorationonstorageforlongterm
asthebiomassdegradeswithtime,tobeconsidered.(MNRE)

V.

O&MExpenses

Normative O&M cost should be considered at reasonable level of ` 48 lakh/MW.

(SathyamGreenPowerPvt.Ltd.,SynergyShaktiRenewableEnergyLtd.,MeritBiozen
Ltd.,AuroMiraBioPowerIndiaPvt.Ltd.)

CurrentlyO&Mlevelarerangingfrom`40to`45Lakh/MW.(TranstechGreenPower
Pvt.Ltd.,ETAPowergenPvt.Ltd.)

RequestedtoreconsidernormativeO&Mchargesat`45Lakh/MWasagainstnotifiedat
`24Lakh/MWintheRETariffRegulation2012,consideringO&Mexpensesallowedfor
BadarpurandTalcharTPSat`34.12Lakh/MWand`38.70Lakh/MWrespectivelyand
higherinflationinpasttwoyears.(KalpataruPowertransmissionLimited)

[Typetext]

Page15

ItisrequestedthatFuelstackingandfeedingcostcostmaybeallowedinadditiontothe
O&M cost as it is peculiar for biomass power plants unlike other RE plants. (Sathyam
GreenPowerPvt.Ltd.)

O&MexpensesofBiomassoncurrentlevelsarerangingfrom`40to`45Lakh/MW.
(IndianBiomassPowerAssociation,OrientGreenPowerCompanyLtd.,SanjogSugars
& Eco Power (P) Ltd. , Global Powertech Equipments Ltd., Shriram Powergen Ltd.,
ShriramNonConventionalEnergyLtd.AmritEnvironmentalTechnologies(P)Ltd.,PSR
GreenPowerProjectsPvt.Ltd.,BiomassPowerProducersAssociation,Tamilnadu)

The O&M expenses specified in the Regulation are at about 5.4% on the Capital Cost.
The Capitalcost of the plantmay kindly beconsideredas `600 Lakh/MW (water coled
condensers)and`34.56lakh/MW(AirCooledcondensers)determiningO&Mexpenses
at`32.4Lakh/MWand`34.56Lakh/MWrespectivelywithanannualescalationrateof
atleast7%.(MaharashtraBiomassEnergyDevelopersAssociation)

O &M expenses are on the lower side as it is in the range of ` 30 to 35 Lakh/MW.

(MNRE)

VI.

CapitalCost

Comments:
Theminimumcapitalcostforaircooledcondensertechnologyis` 650lakhs/MW.The
additionalcapitalcostduetoaircooledcondenseris`50lakhs/MW.Thus,thecapital
cost for water cooled technology should be minimum ` 600 lakhs/MW. It is also seen
thatthecapitalcostforwindhasbeenincreasedby11.65%.Ifthesamepercentageof
increaseisappliedtobiomasspowerplant,thecapitalcostshouldbe`502.43lakhs/
MWforwatercooledtechnology.(SathyamGreenPowerPvt.Ltd.)

Keeping ` 445 Lakh/MW as capital cost for biomass power plants in Rajasthan is
irrelevant and unfeasible and unrealistic. The SERC in the past has already evaluated
[Typetext]

Page16

these points and had fixed acapital cost of ` 586 Lakh/MW. (Transtech Green Power
Pvt.Ltd.)

Thenewbiomasspowerprojectscostis` 570580Lakhs/MW.(IndianBiomassPower
Association,OrientGreenPowerCompanyLtd.,SanjogSugars&EcoPower(P)Ltd.,
PSR Green Power Projects Pvt. Ltd., Biomass Power Producers Association,
Tamilnadu,ETAPowergenPvt.Ltd.)

Reviewoftheassumptions,particularlyinrespectofGCV,Fuelcost,SHR,PLFandcapital
costandacceptanceoftherecommendationsfrombyMNREinrespectoftheseitems.
(DalkiaEnergyServicesLtd.)

Itissubmittedthat,appointmentofanexpertcommitteecomprisingofmembersfrom
CERC Technical wing, CEA, MNRE, IISC Bangalore or IIT Mumbai, Biomass power
associations,Biomasspowerconsultants,reputedtechnologysuppliertogointodetails
andreviewandmakerecommendations.(DalkiaEnergyServicesLtd.)

Capitalcostfornewbiomasspowerplantshouldbedeterminedat`550Lakh/MWfor
FY201213.(SynergyShaktiRenewableEnergyLtd.,MeritBiozenLtd.,AuroMiraBio
PowerIndiaPvt.Ltd.)

TheCapitalcostforthebiomassprojectsshouldbeconsideredat`600Lakhbasedon
Water cooled condenser and ` 640 Lakh/MW for those projects based on Air Cooled
condenser.(MaharashtraBiomassEnergyDevelopersAssociation)

Thecapitalcostofrecentlycommissionedbiomasspowerplantsareintherangeof`
550Lakh/MWmainlyduetodeploymentofhighpressureboilers(60kg/cm2&above),
biomass collection / compaction / shredding equipment, air cooled condensers & RO
plantstoovercomewatershortages&quality,etc.(CogenerationAssociationofIndia)

[Typetext]

Page17

Capital cost norm need revision based on recently commissioned biomass power
projectswhichareintherangeof`550to`600Lakh/MW.(MNRE)

VII.

Aux.Consumption

Comments:
The auxiliary consumption in aircooled technology is not less than 12%. In Juliflora
basedplant,thereishugeelectricityrequirementforrunningwoodChippersandwood
Shredderandtheauxiliaryconsumptionis13%.(TranstechGreenPowerPvt.Ltd.)
Itisrequestedtoconsideranincreaseinaux.consumptionbyanincremental2%to12%
forallbiomassbasedpowerplantsinstalledwithdrycoolingsystems.(IndianBiomass
PowerAssociation,OrientGreenPowerCompanyLtd.,GlobalPowertechEquipments
Ltd.,ShriramPowergenLtd.ShriramNonConventionalEnergyLtd.,PSRGreenPower
Projects Pvt. Ltd., Biomass Power Producers Association, Tamilnadu, ETA Powergen
Pvt.Ltd.)

Requested that this norm may be fixed at minimum 12%. (Synergy Shakti Renewable
EnergyLtd.,MeritBiozenLtd.,AuroMiraBioPowerIndiaPvt.Ltd.)

Since the biomass plants after stabilization period perpetually run at maximum about
7080%,theAuxiliaryconsumptionshouldbeassumedas11.5%.(MaharashtraBiomass
EnergyDevelopersAssociation)

AnalysisandDecision
ThereviewofvariousnormativeparametersspecifiedforBiomassbasedpowerplants
are not the subject matter of present regulatory process which has been initiated for
determinationofgenerictariff.

[Typetext]

Page18

VII.

MinimumPerformanceValue

Comments:
Renewable energy policy guidelines could lay down Minimum Performance Value
(MPV) based on Capacity Utilization factor (CUF) based on certain conditions (e.g.
overallefficiencynotlessthan30%,plantoperationnotlessthan70%oftimebasedon
abiomassLHVof3300kCal/kg,moisturecontentlessthan15%andashlessthan10%.

AnalysisandDecision
Thegenerictariffdeterminedthroughthisorderisbasedonthenormativeparameters
specifiedintheRegulations.Thereisaninherentdisincentiveforgenerationbelowthe
normativeCUFintermsoflowerrecoveryofcost.

F.

Bagassebasedcogenerationprojects

I.

CapitalCost

The capital cost of recently commissioned non fossil fuel based cogeneration power
plantsareintherangeof`650Lakh/MWmainlyduetodeploymentofhighpressure
boilers (87 kg/cm2 & above), air cooled condensers & RO plants to overcome water
shortages&quality,tractors,conveyors,shreddersforincreasingoffseasonoperating
daysetc.(CogenerationAssociationofIndia)

G.

BiomassGasifier

I.

CapitalCost

Comments;
Capitalcostforgasificationplantsshouldbeintherangeof78Cr./MWe.(GEEnergy)

II.

O&MCost

Comments;
O&Mcostforbioenergyplantsshouldbeintherangeof0.51.0`/kWhdependingupon
thetechnology.(GEEnergy)

[Typetext]

Page19

O &M expenses of biomass gasifier power projects are higher than the Rankine cycle
basedpowerprojects.(MNRE)

AnalysisandDecision
The Regulation provides the normative Capital cost as well as O & M expenses for
biomassgasifierbasedprojectsfortheyear201213fordeterminationofthelevellised
tariff. The review of the same is not the subject matter of present regulatory process
whichhasbeeninitiatedfordeterminationofgenerictariff.

H.

Biogasbasedpowerprojects

I.

CapitalCostandCapitalSubsidy

Comments;
Capitalcostforbiomethanationplantsshouldbeintherangeof1012Cr./MWe.(GE
Energy)
AspertheprogrammeofMNREforcapitalsubsidyis,itisdisbursedtothelender/safter
successfulcommissioningoftheprojectanditisnotavailableupfrontfortheproject.As
such, the lender provides short term loan for that component (capital subsidy). The
equityrequiredfortheprojectis30%ofthecapitalcostandnotoftheNetAmount.Itis
submittedthatthecapitalsubsidyavailablefromMNREistobetreatedasshortterm
loancomponentfortheperiodof18monthsfromfinancialcloseandReturnonEquity
needstobeconsideredon30%componentofthecapitalcost.(BharatGreenEnergy
Pvt.Ltd.,TranscarbEnergyPvt.Ltd.)

AnalysisandDecision
ThereviewCapitalCostandaccountingoftheCapitalSubsidyisnotthesubjectmatter
of present regulatory process which has been initiated for determination of generic
tariff.

[Typetext]

Page20

II.

Operation&MaintenanceExpenses

Comments:
ItistosubmitthattheO&Mexpensesneedstobeconsidered`80Lakh/MWinviewof
highcostofyearlyconsumables,capitaloverhaulofbiogasengineandnormalO&Mof
the biogas based power plant. Proper O&M of the biogas based plant is the main
ingredienttoachieve90%ofPlantLoadFactorasenvisagedbytheHonbleCommission
todeterminethetariffforsuchproject

AnalysisandDecision
TheRegulationprovidesthenormativeO&Mexpensesforbiogasbasedprojectsforthe
year201213andwhichshallbeescalatedattherateof5.72%perannumoverthetariff
period for determination of the levellised tariff. Accordingly, the Commission has
consideredO&Mcostnormforbiogaspoweras`40lakh/MWforFY2012.13forthe
determinationoftariff.

The reviewof the same is not the subject matter of present regulatory process which
hasbeeninitiatedfordeterminationofgenerictariff.

Based on the suggestions receivedfrom the projects developers, Industry associations

representing the biomass sector and Ministry of New and Renewable Energy (MNRE),
the Commission has decided to constitute a Committee which will visit existing plants
and conduct a detailed study on the performance/viability of such plants operating in
the

[Typetext]

country

including

the

prevailing

biomass

prices.

Page21


Thegenericlevellisedgenerationtariffforvariousrenewableenergytechnologies,for
FY201213

1. The generic levellised generation tariff for various renewable energy technologies, for
FY201213arediscussedbelow:

USEFULLIFE
2. Clause (aa) of subRegulation (1) of Regulation 2 of the RE Tariff Regulations defines
usefullifeinrelationtoaunitofageneratingstation(includingevacuationsystem)to
mean the following duration from the date of commercial operation (COD) of such
generationfacility:

RenewableEnergyProjects

Years

Windenergy

25

SmallHydro

35

Biomass

20

Nonfossilfuelcogeneration

20

SolarPV

25

SolarThermal

25

BiomassGasifier

20

Biogas

20

CONTROLPERIOD
3. Regulation 5 of the RE Tariff Regulations provides that the control period for
determinationoftariffforrenewableenergyprojects(REprojects)shallbeoffiveyears.
ThefirstyearofthecontrolperiodisfromFY201213.TheProvisotothesaidregulation
stipulates that the tariff determined for the RE projects commissioned during the
controlperiodshallcontinuetobeapplicablefortheentiredurationofthetariffperiod
asspecifiedinRegulation6oftheRETariffRegulations.
[Typetext]

Page22


TARIFFPERIOD
4.

IntermsofRegulation6oftheRETariffRegulations,thetariffperiodinrespect
oftheREprojectsisasunder:

RenewableEnergyProjects

Years

Windenergy

13

SmallHydrobelow5MW

35

SmallHydro525MW

13

Biomass

13

Nonfossilfuelcogeneration

13

SolarPVandSolarThermal

25

BiomassGasifierandBiogas

20

In terms of clauses (e) and (f) of the said regulation, the tariff period specified above
shall be reckoned from the date of commercial operation of the RE projects and the
tariffdeterminedundertheregulationsshallbeapplicableforthedurationofthetariff
period.

TARIFFSTRUCTURE
5.

Clause(1)ofRegulation9oftheRERegulationsstipulatesthatthetariffforRE
projectsshallbesingleparttariffconsistingofthefollowingfixedcostcomponents:
(a)Returnonequity;
(b)Interestonloancapital;
(c)Depreciation;
(d)Interestonworkingcapital;
(e)Operationandmaintenanceexpenses;
For renewable energy technologies having fuel cost component, like biomass power
projectsandnonfossilfuelbasedcogeneration,singleparttariffwithtwocomponents,
fixedcostcomponentandfuelcostcomponent,istobedetermined.

[Typetext]

Page23


TARIFFDESIGN
6.

In terms of Regulation 10 of the RE Tariff Regulations, the tariff design for

renewableenergygeneratingstationsisasunder:

"(1)ThegenerictariffshallbedeterminedonlevellisedbasisfortheTariff
Period.
Providedthatforrenewableenergytechnologieshavingsingleparttariff
with two components, tariff shall be determined on levellised basis
considering the year of commissioning of the project for fixed cost
component while the fuel cost component shall be specified on year of
operationbasis.

(2) For the purpose of levellised tariff computation, the discount factor
equivalent to Post Tax weighted average cost of capital shall be
considered.

(3)LevellisationshallbecarriedoutfortheusefullifeoftheRenewable
EnergyprojectwhileTariffshallbespecifiedfortheperiodequivalentto
TariffPeriod.

LEVELLISEDTARIFF
7.

LevellisedTariffiscalculatedbycarryingoutlevellisationforusefullifeofeach
technologyconsideringthediscountfactorfortimevalueofmoney.

DiscountFactor
The discount factor considered for this purpose is equal to the Post Tax weighted
averagecostofthecapitalonthebasisofnormativedebt:equityratio(70:30)specified
intheRegulations.Consideringthenormativedebtequityratioandweightedaverageof
theposttaxratesforinterestandequitycomponent,thediscountfactoriscalculated.
[Typetext]

Page24


InterestRateconsideredfortheloancomponent(i.e.70%)ofCapitalCostis12.30%(as
explained later). For equity component (i.e. 30%) rate of Return on Equity (ROE)
considered at Post Tax ROE of 16% considered. The discount factor derived by this
methodforalltechnologyis10.62%.

CAPITALCOST
8.

Regulation 12 of the RE Tariff Regulations stipulates that the norms for the
capital cost as specified in the technology specific chapter shall be inclusive of all capital
works like plant and machinery, civil works, erection and commissioning, financing and
interest during construction, and evacuation infrastructure up to interconnection point.
The Commission has specified the normative capital cost, applicable for the first year of
control period i.e. FY 2001213, for various RE technologies viz Wind Energy, Small Hydro
Power, Biomass Power, NonFossil Fuel based Cogeneration, Solar PV, Solar Thermal,
BiomassGasifierandBiogasbasedpowerprojects.

TechnologyspecificcapitalcostofREprojectsisdiscussedhereinunder:

(A)

CapitalCostofWindEnergyforFY201213

9.

Regulation 24 provides that the capital cost for wind energy project shall
includewindturbinegeneratorincludingitsauxiliaries,landcost,sitedevelopmentcharges
andothercivilworks,transportationcharges,evacuationcostuptointerconnectionpoint,
financingchargesandIDC.

10.

The Commission under Regulation 24 (2) has specified the normative capital
costforwindenergyprojectsas`575Lakh/MWforFY201213.

(B)CapitalcostofSmallHydroProjectsforFY201213

[Typetext]

Page25

11.

SmallHydroProjectsforthepurposeoftheRETariffRegulationscoverthose
projects which are located at the sites approved by the State Nodal Agencies/State
Governmentsusingnewplantandmachineryandwithinstalledpowerplantcapacitylower
thanorequalto25MW.

12.

The Commission under Regulation 28 (1) has specified the normative capital
costforsmallhydroprojectsforFY201213asunder:

ProjectSize

CapitalCost
(FY201213)
(`Lakh/MW)

Below5MW

770

5MWto25MW

700

OtherStates

Below5MW

600

5MWto25MW

550

Region
HimachalPradesh,
UttarakhandandNorth
EasternStates

(C)CapitalCostofBiomassbasedPowerProjectsforFY201213
13.

Biomass power project for the purpose of these Regulations covers the
projects using new plant and machinery based on Rankine cycle technology application
usingwatercooledcondenserandbiomassfuelsourceswhereuseoffossilfuelislimitedto
theextentof15%oftotalfuelconsumptiononannualbasis.

14.

TheCommissionunderRegulation34hasspecifiedthenormativecapitalcost
forthebiomasspowerprojectsbasedonRankinecycletechnologyapplicationusingwater
cooledcondenseras`445Lakh/MWforFY201213.

(D)CapitalCostofNonfossilfuelbasedCogenerationProjectsforFY201213
15.

Nonfossilbasedcogenerationhasbeendefinedastheprocessinwhichmore
than one form of energy is produced in a sequential manner by using biomass. As per
Regulation4(d)oftheRETariffRegulations,aprojecttoqualifyasthenonfossilbasedco

[Typetext]

Page26

generation project must be using new plant and machinery with topping cycle mode of
operationwhichusesthenonfossilfuelinputforpowergenerationandutilizesthethermal
energy generated for useful heat applications in other industrial activities simultaneously,
andwherethesumofusefulpoweroutputandhalfofusefulthermaloutputisgreaterthan
45%oftheplantsenergyconsumptionduringtheseason.
16.

TheCommissionunderRegulation47hasspecifiedthenormativecapitalcost
fortheNonFossilFuelBasedCogenerationProjectsas`420Lakh/MWforFY201213.

(E)CapitalCostofSolarPVbasedPowerProjectsforFY201213
17.

Solar Photo Voltaic (PV) power projects which directly convert solar energy
intoelectricityusingthecrystallinesiliconorthinfilmtechnologyoranyothertechnologyas
approved by the Ministry of New and Renewable Energy and are connected to the grid,
qualifyforthepurposeoftariffdeterminationundertheRETariffRegulations.

18.

TheCommissionunderRegulation57hasspecifiedthenormativecapitalcost
fortheSolarPVpowerprojectsas`1000Lakh/MWfortheFY201213.

(F)CapitalCostofSolarThermalbasedPowerProjectsforFY201213
19.

In order to qualify for tariff determination under the RE Tariff Regulations,

SolarThermalPowerProjectshallbebasedonconcentratedsolarpowertechnologieswith
linefocusingorpointfocusingasmaybeapprovedbytheMinistryofNewandRenewable
Energyandwhichusesdirectsunlighttogeneratesufficientheattooperateaconventional
powercycletogenerateelectricity.

20.

TheCommissionunderRegulation61hasspecifiedthenormativecapitalcost
fortheSolarThermalpowerprojectsas`1300Lakh/MWfortheFY201213.

(G)CapitalCostofBiomassGasifierPowerProjectsforFY201213
21.

TheCommissionunderRegulation66hasspecifiedthenormativecapitalcost
fortheBiomassGasifierpowerprojectsbasedonRankinecycleshallbe`550Lakh/MWfor

[Typetext]

Page27

theFY201213andaftertakingintoaccountofcapitalsubsidynetprojectcostshallbe`
400Lakh/MWfortheFY201213.
(H)CapitalCostofBiogasbasedPowerProjectsforFY201213
22.

InordertoqualifyfortariffdeterminationundertheRETariffRegulations,grid
connectedbiogas based power projects that uses 100% Biogas fired engine, coupled with
Biogastechnologyforcodigestingagricultureresidues,manureandotherbiowasteasmay
beapprovedbytheMinistryofNewandRenewableEnergy.

23.

TheCommissionunderRegulation76hasspecifiedthenormativecapitalcost
fortheBiogasbasedpowerprojectsshallbe`1100Lakh/MWfortheFY201213andafter
taking into account of capital subsidy net project cost shall be ` 800Lakh/MW for the FY
201213.

24.

The capital cost for the first year (i.e. FY 201213) of the control period in
respectoftherenewableenergypowergeneratingstationsissummarizedasunder:

(1)WindEnergyProjects

CapitalCostNormforFY201112
(`Lakh/MW)
575

(2)SmallHydroProjects

RenewableEnergyProjects

(a) HimachalPradesh,UttarakhandandNorth

EasternStates(lessthan5MW)
(b) HimachalPradesh,UttarakhandandNorth

EasternStates(5MWto25MW)

770

700

(c) OtherStates(below5MW)

600

(d) OtherStates(5MWto25MW)

550

(3) BiomassPowerProjects

445

(4) NonfossilfuelbasedcogenerationPowerProjects

420

(5) SolarPVPowerProjects

1000

(6) SolarThermalPowerProjects

1300

(7) BiomassGasifierPowerProjects

400

[Typetext]

Page28

(8) BiogasPowerProjects

800

DEBTEQUITYRATIO
25.

SubRegulation(1)ofRegulation13oftheRETariffRegulationsprovidesthat
thedebtequityratioof70:30istobeconsideredfordeterminationofgenerictariffbased
onsuomotupetition.

26.

Based on the debt equity ratio of 70:30, the debt and equity components of
thenormativecapitalcostfordeterminationoftarifffortheREprojectshavebeenworked
outasunder:

Debt
(`Lakh)

Equity
(`Lakh)

402.50

172.50

539

231

490

210

420

180

385

165

311.50

133.50

(4)Nonfossilfuelcogeneration

294

126

(5)SolarPV

700

300

(6)SolarThermal

910

390

(7)BiomassGasifierbasedPowerProjects

280

120

(8)BiogasbasedPowerProjects

560

240

RenewableEnergyProjects
(1)WindEnergy(forallzones)
(2)SmallHydro
(a)HimachalPradesh,UttarakhandandNorth
EasternStates(below5MW)
(b)HimachalPradesh,UttarakhandandNorth
EasternStates(5MWto25MW)
(c)OtherStates(below5MW)
(d)OtherStates(5MWto25MW)
(3)Biomass

RETURNONEQUITY
27.

SubRegulation(1)ofRegulation16oftheRETariffRegulationsprovidesthat
the value base for the equity shall be 30% of the capital cost for generic tariff

[Typetext]

Page29

determination.SubRegulation(2)ofthesaidRegulationstipulatesthenormativereturnon
equity(ROE)asunder:
(a)20%perannumforthefirst10years,and
(b)24%perannumfromthe11thyearonwards.
INTERESTONLOAN
28.

SubRegulation (1) of Regulation 14 of the RE Regulations provides that the

loantenureof12yearsistobeconsideredforthepurposeofdeterminationoftariffforRE
projects.SubRegulation(2)ofthesaidRegulationprovidesforcomputationoftherateof
interestonloanasunder:

(a) The loans arrived at in the manner indicated in the Regulation 13 shall be
considered as gross normative loan for calculation for interest on loan. The
normativeloanoutstandingasonApril1stofeveryyearshallbeworkedoutby
deductingthecumulativerepaymentuptoMarch31stofpreviousyearfromthe
grossnormativeloan.

(b)Forthepurposeofcomputationoftariff,thenormativeinterestrateshallbe
considered as average State Bank of India (SBI) Base rate prevalent during the
firstsixmonthsofthepreviousyearplus300basispoints.

(c)Notwithstandinganymoratoriumperiodavailedbythegeneratingcompany,
the repayment of loan shall be considered from the first year of commercial
operationoftheprojectandshallbeequaltotheannualdepreciationallowed".

29.

TheweightedaverageStateBankofIndia(SBI)Baserateprevalentduringthe
firstsixmonthshasbeenconsideredforthedeterminationoftariff,asshowninthetable
below:
Periodfrom
01/04/2011
25/4/2011

[Typetext]

Periodto
24/4/2011
05/11/2011

Baserate
8.25%
8.50%

Noof
Days
24
17
Page30

05/12/2011
07/10/2011
9.25%
60
07/11/2011
08/12/2011
9.50%
33
13/8/2011
30/9/2011
10.00%
49
AverageBaserateforFY1112
9.30%
183
Source:StateBankofIndia(www.statebankofindia.com)

30.

In terms of the above, the computations of interest on loan carried out for
determinationoftariffinrespectoftheREprojectstreatingthevaluebaseofloanas70%of
thecapitalcostandtheweightedaverageofBaserateprevalentduringthefirstsixmonths
ofthe(i.e.9.30%)plus300basispoints(equivalenttointerestrateof12.30%).

DEPRECIATION
31.

Regulation 15 of the RE Tariff Regulations provides for computation of

depreciationinthefollowingmanner:

"(1)ThevaluebaseforthepurposeofdepreciationshallbetheCapitalCostoftheasset
admittedbytheCommission.TheSalvagevalueoftheassetshallbeconsideredas10%
and depreciation shall be allowed up to maximum of 90% of the Capital Cost of the
asset.

(2)DepreciationperannumshallbebasedonDifferentialDepreciationApproach'over
loanperiodbeyondloantenureoverusefullifecomputedonStraightLineMethod.The
depreciationrateforthefirst12yearsoftheTariffPeriodshallbe5.83%perannumand
theremainingdepreciationshallbespreadovertheremainingusefullifeoftheproject
from13thyearonwards.

(3) Depreciation shall be chargeable from the first year of commercial operation.
Provided that in case of commercial operation of the asset for part of the year,
depreciationshallbechargedonproratabasis".

[Typetext]

Page31

32.

Inaccordancewiththeabove,therateofdepreciationforthefirst12yearshas
beenconsideredas5.83%andtherateofdepreciationfromthe13thyearonwardshasbeen
spreadoverthebalanceusefullifeoftheREprojectasunder:

Wind
Energy

Details
UsefulLife(in
years)
Rateof
depreciationfor
12years(%)
Rateof
depreciation
afterfirst12
years(%)

Small
Nonfossilfuel
Biomass
Hydro
cogeneration

Solar
PV

Solar
Biomass
Thermal Gasifier

Biogas

25

35

20

20

25

25

20

20

5.83

5.83

5.83

5.83

5.83

5.83

5.83

5.83

1.54

0.87

2.50

2.50

1.54

1.54

2.50

2.50

INTERESTONWORKINGCAPITAL
33.

Regulation 17 of the RE Tariff Regulations provides for the working capital

requirementsoftheREprojectsasunder:
(1) The Working Capital requirement in respect of wind energy projects, Small
Hydro Power, Solar PV and Solar thermal power projects shall be computed in
accordancewiththefollowing:

WindEnergy/SmallHydroPower/SolarPV/Solarthermal
a)Operation&Maintenanceexpensesforonemonth;
b) Receivables equivalent to 2 (Two) months of energy charges for sale of
electricitycalculatedonthenormativeCUF;
c)Maintenancespare@15%ofoperationandmaintenanceexpenses

[Typetext]

Page32

(2) The Working Capital requirement in respect of biomass power projects and
nonfossil fuel based cogeneration projects shall be computed in accordance
withthefollowingclause:

Biomass(Rankine Cycle Technology), Biomass Gasifier, Biogas Power and Non

fossilfuelCogeneration
a)FuelcostsforfourmonthsequivalenttonormativePLF;
b)Operation&Maintenanceexpenseforonemonth;
c)Receivablesequivalentto2(Two)monthsoffixedandvariablechargesforsale
ofelectricitycalculatedonthetargetPLF;
d)Maintenancespare@15%ofoperationandmaintenanceexpenses

(3)InterestonWorkingCapitalshallbeatinterestrateequivalenttotheaverage
State Bank of India Base Rate prevalent during the first six months of the
previousyearplus350basispoints.

34.

Receivablesequivalenttotwomonthsofactualfixedcostandvariablecost,(as
applicable for biomass power and nonfossil fuel based cogeneration) have been
considered.AsmentionedintheParaNo.34,interestrateconsideredasweightedaverage
ofStateBankofIndiaBaseRateprevalentduringthefirstsixmonthsofthepreviousyear
plus350basispoints(equivalenttointerestrateof12.80%).Theinterestonworkingcapital
hasbeenworkedoutasspecifiedbelowfordeterminationoftariffoftheREprojects:

Details

Wind
Energy

Small
Hydro

Biomass,
Biomass
Gasifier
and
Biogas

Nonfossil
fuelco
generatio
n

SolarPV

Solar
Thermal

15

15

15

15

15

15

(A)ForFixedcharges
(i) O&M
expenses
(month)
(ii)
Maintenance
[Typetext]

Page33

spares (%) of O&M

expenses
(iii)
Receivables
(months)

(B)ForVariableCharges
Biomass/Bagasse stock

4
4

(months)
(C) Interest On Working
12.80
12.80
12.80
12.80
12.80
Capital(%)
SourceforSBIBaseRate:StateBankofIndia(www.statebankofindia.com)

12.80

OPERATIONANDMAINTENANCEEXPENSES
35.

Regulation 18 of the RE Tariff Regulations provides for Operation and

MaintenanceExpenses(O&Mexpenses)inrespectofREprojectsasunder:

OperationandMaintenanceExpenses
(1) Operation and Maintenance or O&M expenses shall comprise repair and
maintenance (R&M), establishment including employee expenses and
administrative&generalexpenses.

(2) Operation and maintenance expenses shall be determined for the Tariff
Period based on normative O&M expenses specified by the Commission
subsequentlyintheseRegulationsforthefirstYearofControlPeriod.

(3)NormativeO&MexpensesallowedduringfirstyearoftheControlPeriod(i.e.
FY201213)undertheseRegulationsshallbeescalatedattherateof5.72%
perannumovertheTariffPeriod.

36.

ThenormativeO&MexpensesforvariousREtechnologiesspecifiedunderthe
relevantprovisionsoftheRETariffRegulationsareasunder:

[Typetext]

Page34

(a) Wind Energy: Regulation 27 of RE Tariff Regulations provides that the normative
O&Mexpensesforthefirstyearofthecontrolperiod(i.e.201213)as`9lakhperMW
and shall be escalated at the rate of 5.72% per annum over the tariff period for
determinationofthelevellisedtariff.
(b) Small Hydro: Regulation 32 of RE Regulations provided for the normative O& M
expensesforsmallhydroprojectsfortheyear201213whichshallbeescalatedatthe
rateof5.72%perannumoverthetariffperiodfordeterminationofthelevellisedtariff.
ThetablebelowpresentsthenormativeO&MExpensesconsideredbytheCommission
forsmallhydropowerforFY201213;

Region
HimachalPradesh,
UttarakhandandNorth
EasternStates
OtherStates

ProjectSize

O&Mexpenses
(`Lakh/MW)

Below5MW

25

5MWto25MW

18

Below5MW
5MWto25MW

20
14

(c)Biomass:Regulation39ofRETariffRegulationsprovidesthatthenormativeO&M
expenses for biomass based projects for the year 201213 shall be ` 24 Lakh per MW
andwhichshallbeescalatedattherateof5.72%perannumoverthetariffperiodfor
determinationofthelevellisedtariff.

(d) Nonfossil fuel cogeneration: As per Regulation 55 of RE Tariff Regulations, the

normativeO&MExpensesfornonfossilfuelcogenerationprojectsfortheyear201213
hasbeenspecifiedas`16LakhperMWwhichshallbeescalatedattherateof5.72%
perannumoverthetariffperiodfordeterminationofthelevellisedtariff.

(e)SolarPV:Regulation59ofRETariffRegulationsprovidesthatthenormativeO&M
expenses for solar PV projects for the year 201213 shall be ` 11 Lakh per MW which

[Typetext]

Page35

shall be escalated at the rate of 5.72% per annum over the tariff period for
determinationofthelevellisedtariff.

(f) Solar Thermal: Regulation 63 of the RE Tariff Regulations specified the normative
O&Mexpensesforsolarthermalpowerprojectsshallbe`15Lakh/MWforthefirstyear
of operation, which shall be escalated at the rate of 5.72% per annum over the tariff
periodfordeterminationofthelevellisedtariff.

(g)BiomassGasifier:Regulation71oftheRETariffRegulationsspecifiedthenormative
O&Mexpensesforsolarthermalpowerprojectsshallbe`40Lakh/MWforthefirstyear
of operation, which shall be escalated at the rate of 5.72% per annum over the tariff
periodfordeterminationofthelevellisedtariff.

(h) Biogas: Regulation 80 of the RE Tariff Regulations specified the normative O&M
expensesforsolarthermalpowerprojectsshallbe`40Lakh/MWforthefirstyearof
operation, which shall be escalated at the rate of 5.72% per annum over the tariff
periodfordeterminationofthelevellisedtariff.

CAPACITYUTILISATIONFACTOR
37.

Regulations26,30,58and62oftheRETariffRegulationsspecifythenormsfor
Capacity Utilization Factor (CUF)/Plant Load Factor (PLF) in respect of the Wind Energy,
SmallHydro,SolarPVandSolarThermalbasedpowergeneratingstationsasperthedetails
giveninthetablebelowwhichhasbeenconsideredfordeterminationoftariff.

RenewableEnergyProjects
(A) WindEnergy
AnnualMeanWindPowerDensity(W/m2)
Windzone1(Upto200)
Windzone2(201250)
Windzone3(251300)
[Typetext]

CUF

20%
22%
25%
Page36

Windzone 4(301 400)

Windzone5(Above400)

30%
32%

(B) SmallHydro
(i) Himachal Pradesh, Uttarakhand and North Eastern
States
(ii) OtherStates
(C) SolarPV

45%
30%

(D) SolarThermal

23%

19%

PLANTLOADFACTOR(PLF)
38.

Regulations36,68and 78oftheRETariffRegulationsspecifytheplantload
factorforBiomass,BiomassGasifierandBiogasbasedrenewableenergygeneratingstations
asgiveninthetablebelowwhichhasbeenconsideredfordeterminationoffixedcharges
componentoftariff.

RenewableEnergyProjects
(A) Biomass
(a) Duringstabilization(6months)
(b) During remaining period of the first year (after
stabilization)
(c) Secondyearonwards
(B) BiomassGasifier
(C)

Biogas

PLF
60%
70%
80%
85%
90%

39.

Regulation 49 of the RE Tariff Regulations stipulates the plant load factor for
Nonfossil Fuel based Cogeneration projects as under, computed on the basis of plant
availabilityfornumberofoperatingdaysconsideringtheoperationsduringcrushingseason
andoffseasonandloadfactorof92%.ThenumberofoperatingdaysfordifferentStatesas
specifiedintheRegulation49(2)isasunder:

[Typetext]

Page37


States

Operatingdays

PLF

120days(crushing)+60days(offseason)=180days

45%

180days(crushing)+60days(offseason)=240days

60%

150days(crushing)+60days(offseason)=210days

53%

UttarPradesh
andAndhraPradesh
TamilNaduand
Maharashtra
OtherStates

AUXILIARYPOWERCONSUMPTION
40.

Regulations31,37,50,64,69and79oftheRETariffRegulationsstipulatethe
auxiliarypowerconsumptionfactorasunderwhichhasbeenconsideredfordetermination
oftariffoftheREprojects:

RenewableEnergyProjects

SmallHydro

1%

Biomass

10%

Nonfossilfuelcogeneration

8.5%

SolarThermal

10%

BiomassGasifier

10%

Biogas

12%

AuxiliaryConsumptionFactor

STATIONHEATRATE
41.

TheStationHeatRates(SHR)specifiedunderRegulations38and51oftheRE
TariffRegulationsforbiomassandnonfossilfuelbasedcogenerationprojectsareasunder:
RenewableEnergyProjects

[Typetext]

SHR
(kCal/kWh)

Page38

Biomass

4000

Nonfossilfuelcogeneration
(forpowercomponent)

3600

FUEL
(a) FuelMix
42.

SubRegulation(1)ofRegulation40oftheRETariffRegulationsstipulatesthat
the Biomass based power generating stations are to be designed in a way that it uses
differenttypesofnonfossilfuelsavailablewithinthevicinityofbiomasspowerprojectsuch
as crop residues, agroindustrial residues, forest residues etc. and other biomass fuels as
maybeapprovedbytheMinistryofNonRenewableEnergy(MNRE).SubRegulation(2)of
thesaidRegulationsstipulatesthatthebiomasspowergeneratingcompaniesaretoensure
fuelmanagementplantoensureadequateavailabilityoffueltomeettherespectiveproject
requirements.

43.

Regulation70oftheRETariffRegulationsstipulatesthatthenormativespecific
fuel consumption shall be 1.25 kg per kWh for Biomass Gasifier based power generating
stations.

44.

Regulation81oftheRETariffRegulationsstipulatesthatthenormativespecific
fuelconsumptionshallbe3kgofsubstratemixperkWhforBiogasbasedpowergenerating
stations.

(b)Useoffossilfuel
45.

AsperRegulation41oftheRETariffRegulations,theuseoffossilfuelistobe
limitedtotheextentof15%oftotalfuelconsumptiononannualbasisandRegulation42of
theRETariffRegulationsprovidesthemechanismformonitoringtheuseoffossilfuelisas
under:

[Typetext]

Page39

(1) The Project developer shall furnish to the State Nodal Agency, a
monthly fuel usage statement and monthly fuel procurement statement
dulycertifiedbyCharteredAccountanttothebeneficiary(withacopyto
appropriate agency appointed by the Commission for the purpose of
monitoring the fossil and nonfossil fuel consumption) for each month,
alongwiththemonthlyenergybill.Thestatementshallcoverdetailssuch
as
a) Quantityoffuel(intonne)foreachfueltype(biomassfuelsandfossil
fuels)consumedandprocuredduringthemonthforpowergeneration
purposes,
b) Cumulative quantity (in tonne) of each fuel type consumed and
procuredtilltheendofthatmonthduringtheyear,
c) Actual (gross and net) energy generation (denominated in units)
duringthemonth,
d) Cumulativeactual(grossandnet)energygeneration(denominatedin
units)untiltheendofthatmonthduringtheyear,
e) Openingfuelstockquantity(intonne),
f) Receiptoffuelquantity(intonne)atthepowerplantsiteand
g) Closingfuelstockquantity(intonne)foreachfueltype(biomassfuels
andfossilfuels)availableatthepowerplantsite.

(2)Noncompliancewiththeconditionoffossilfuelusagebytheproject
developer, during any financial year, shall result in withdrawal of
applicability of tariff as per these Regulations for such biomass based
powerproject.

(c)Calorificvalue
46.

Regulation 43 of the RE Tariff Regulations provides the calorific value of

biomassfuelusedfordeterminationoftariffshallbeat3300kCal/kg.

[Typetext]

Page40

47.

Regulation 52 of the of the RE Tariff Regulations provides the gross calorific

valueforbagassetobeconsideredincaseofnonfossilfuelcogenerationprojectsis2250
kCal/kgandfortheuseofbiomassfuelsotherthanbagasse,thecalorificvalueasspecified
aboveshallbeapplicable.

(d)Fuelcost
48.

The Commission, in terms of Regulation 44 of the RE Tariff Regulations, has

specifiedthebiomassfuelpriceapplicableduringtheperiod201213andhasspecifiedfuel
priceindexationmechanism,incasedeveloperwishestoopt,fortheremainingyearsofthe
controlperiod.Accordingly,thebiomassfuelpriceapplicableforFY201213isasunder:

State
AndhraPradesh
Haryana
Maharashtra
Punjab
Rajasthan
TamilNadu
UttarPradesh
OtherStates

Biomassprice
(`/tonne)
2315
2635
2695
2756
2300
2277
2355
2476

49.

The Commission, in terms of Regulation 53 of the RE Tariff Regulations, has

specifiedthepriceofbagasseapplicableduringtheperiod201213andhasspecifiedfuel
priceindexationmechanism,incasedeveloperwishestoopt,fortheremainingyearsofthe
control period. The price of bagasse (for nonfossil fuel based cogeneration projects)
applicableforFY201213shallbeasinthetablebelow;

State
AndhraPradesh
Haryana
Maharashtra
Punjab

[Typetext]

BagassePrice
(`/tonne)
1307
1859
1832
1636
Page41

TamilNadu
UttarPradesh
OtherStates

50.

1408
1458
1583

The Commission, in terms of Regulation 73 of the RE Tariff Regulations, has

specifiedthebiomassfuelpriceduringfirstyearoftheControlPeriod(i.e.FY201213)as
per Regulation 44 and has specified fuel price indexation mechanism for the Biomass
Gasifierprojectdeveloper.

51.

The Commission, in terms of Regulation 82 of the RE Tariff Regulations, has

specifiedthefeedstockpriceduringfirstyearoftheControlPeriod(i.e.FY201213)at`
990/MT(netofanycostrecoveryfromdigestereffluent).

52.

In case of Biomass Power Projects, nonfossil fuel based cogeneration

projects,BiomassGasifierbasedpowerProjectsandBiogasbasedpowerprojects,variable
component of tariff is calculated based on the fuel cost for FY 201213. This variable
component will change each year based on whether a Renewable Energy Power Project
developeroptsforfuelpriceindexationorescalationfactorof5%.Hence,whilecalculating
the total applicable tariff for biomass based power projects, and nonfossil fuel based co
generation projects levellisation of only fixed component is considered and the variable
componentforthefirstyearofoperation(i.e.201213)isspecified.

SubsidyorincentivebytheCentral/StateGovernment
53.

Regulation22oftheRETariffRegulationsprovidesasunder:
TheCommissionshalltakeintoconsiderationanyincentiveorsubsidyofferedby
the Central or State Government, including accelerated depreciation benefit if
availedbythegeneratingcompany,fortherenewableenergypowerplantswhile
determiningthetariffundertheseRegulations.

Providedthatthefollowingprinciplesshallbeconsideredforascertainingincome
taxbenefitonaccountofaccelerateddepreciation,ifavailed,forthepurposeof
tariffdetermination:
[Typetext]

Page42

i) Assessment of benefit shall be based on normative capital cost, accelerated

depreciationrateasperrelevantprovisionsunderIncomeTaxActandcorporate
incometaxrate.

ii) Capitalization of RE projects during second half of the fiscal year. Per unit
benefitshall be derivedon levellised basis at discount factor equivalentto Post
Taxweightedaveragecostofcapital.

54.

In terms of the above regulation, for the projects availing the benefit of
accelerated depreciation as per applicable Income tax rate @ 32.445% (30% IT rate+ 5%
surcharge +3% Education cess) has been considered. For the purpose of determining net
depreciationbenefits,depreciation@5.28%asperstraightlinemethod(Bookdepreciation
asperCompaniesAct,1956)hasbeencomparedwithdepreciationasperIncomeTaxrate
i.e. 80% of the written down value method and depreciation for the first year has been
calculatedattherateof50%of80%i.e.40%,asprojectiscapitalizedduringthesecondhalf
ofthefinancialyearasperproviso(ii)toRegulation22.Incometaxbenefitsofaccelerated
depreciation,hasbeenworkedoutaspernormaltaxrateonthenetdepreciationbenefit.
Perunitlevellisedaccelerateddepreciationbenefithasbeencomputedconsideringthepost
taxweightedaveragecostofcapitalasdiscountfactor.

55.

In the light of the discussion made in the preceding paragraphs, the generic
tariffsofthefollowingREprojectsforthefinancialyear201213havebeendeterminedas
under:
GenericTariffforRETechnologiesforFY201213

Particular

Levellised
TotalTariff
(`/kWh)

NetLevellisedTariff
BenefitofAccelerated
(uponadjustingfor
Depreciation
AcceleratedDepreciation
(ifavailed)
benefit)(ifavailed)
(`/kWh)
(`/kWh)

WindEnergy
WindZone1(CUF20%)
[Typetext]

5.96

0.60

5.36
Page43

WindZone2(CUF22%)

5.42

0.55

4.87

WindZone3(CUF25%)

4.77

0.48

4.29

WindZone4(CUF30%)

3.97

0.40

3.57

WindZone5(CUF32%)

3.73

0.38

3.35

SmallHydroPowerProject
HP,UttarakhandandNE
States(Below5MW)
HP,UttarakhandandNE
States(5MWto25MW)

4.14

0.32

3.82

3.54

0.29

3.25

OtherStates(Below5MW)

4.88

0.38

4.50

OtherStates(5MWto25
MW)

4.16

0.34

3.82

Levellised
FixedCost
State

(`/kWh)

NetLevellisedTariff
Variable
Benefitof
(uponadjustingfor
Applicable
Cost
Accelerated
Accelerated
TariffRate
(FY2012
Depreciation
Depreciation
(FY201213)
13)
(ifavailed)
benefit)(ifavailed)

(`/kWh)
(`/kWh)
(`/kWh)
(`/kWh)

BiomassPowerProject

Andhra
Pradesh

2.06

3.12

5.18

0.13

5.05

Haryana

2.10

3.55

5.65

0.13

5.52

Maharashtra

2.11

3.63

5.74

0.13

5.61

Punjab

2.12

3.71

5.83

0.13

5.70

Rajasthan

2.06

3.10

5.16

0.13

5.03

TamilNadu

2.06

3.07

5.12

0.13

4.99

Uttar
Pradesh

2.07

3.17

5.24

0.13

5.11

Others

2.08

3.33

5.42

0.13

5.29

NonFossilFuelbasedCogeneration

[Typetext]

Page44

Andhra
Pradesh

2.77

2.29

5.06

0.21

4.85

Haryana

2.48

3.25

5.73

0.18

5.55

Maharashtra

2.22

3.20

5.42

0.16

5.26

Punjab

2.44

2.86

5.30

0.18

5.12

TamilNadu

2.15

2.46

4.61

0.16

4.45

Uttar
Pradesh

2.80

2.55

5.35

0.21

5.14

Others

2.43

2.77

5.20

0.18

5.02

SolarPVandSolarThermal
Levellised
TotalTariff
(FY201213)

Particular

SolarPV

(`/kWh)
10.39

SolarThermal

12.46

NetLevellisedTariff
Benefitof
(uponadjustingfor
Accelerated
Accelerated
Depreciation
Depreciation
(ifavailed)
benefit)(ifavailed)
(`/kWh)
(`/kWh)
1.04
9.35
1.24

11.22

NetLevellised
Tariff
Benefitof
(uponadjusting
Accelerated forAccelerated
Depreciation Depreciation
(ifavailed)
benefit)(if
availed)

(`/kWh)
(`/kWh)

Levellised
FixedCost

Variable
Cost
(FY2012
13)

(`/kWh)

(`/kWh)

Andhra
Pradesh

2.29

3.22

5.51

0.11

5.40

Haryana

2.34

3.66

6.00

0.11

5.89

State

[Typetext]

Applicable
TariffRate
(FY201213)

(`/kWh)

BiomassGasifierPowerProject

Page45

NetLevellised
Tariff
Benefitof
(uponadjusting
Accelerated forAccelerated
Depreciation Depreciation
(ifavailed)
benefit)(if
availed)

(`/kWh)
(`/kWh)

Levellised
FixedCost

Variable
Cost
(FY2012
13)

Applicable
TariffRate
(FY201213)

(`/kWh)

(`/kWh)

(`/kWh)

Maharashtra

2.35

3.74

6.09

0.11

5.98

Punjab

2.36

3.83

6.19

0.11

6.08

Rajasthan

2.29

3.19

5.48

0.11

5.37

TamilNadu

2.28

3.16

5.44

0.11

5.33

Uttar
Pradesh

2.29

3.27

5.56

0.11

5.45

Others

2.32

3.44

5.76

0.11

5.65

3.06

BiogasbasedCogeneration
3.38
6.44

0.21

6.23

State

Biogas

56.

The detailed computations for the generic tariff for various RE technologies
havebeenenclosedtothisOrderasperthedetailsgivenhereunder:

SNo

RenewableEnergyProjects

Annexure

WindPowerProjects

WindZoneI

Annexure1A

WindZoneII

Annexure1B

WindZoneIII

Annexure1C

WindZoneIV

Annexure1D

WindZoneV

Annexure1E

[Typetext]

Page46

SNo

RenewableEnergyProjects

Annexure

SmallHydroPowerProjects

ProjectsLessthan5MWforHP,Uttarakhandand Annexure2A
NEStates

Projectsbetween5MWand25MWforHP,

Annexure2B

UttarakhandandNEStates

Projectslessthan5MWforotherStates

Annexure2C

Projectsbetween5MWand25MWforother

Annexure2D

States
C

BiomassPowerProjects

AndhraPradesh

Annexure3A

Haryana

Annexure3B

Maharashtra

Annexure3C

Punjab

Annexure3D

Rajasthan

Annexure3E

UttarPradesh

Annexure3F

TamilNadu

Annexure3G

Others

Annexure3H

NonFossilFuelBasedCogeneration

AndhraPradesh

Annexure4A

Haryana

Annexure4B

Maharashtra

Annexure4C

Punjab

Annexure4D

UttarPradesh

Annexure4E

TamilNadu

Annexure4F

Others

Annexure4G

E
[Typetext]

SolarProjects
Page47

SolarPVProjects

SolarThermalProjects

Annexure5A

Annexure6A

BiomassGasifierPowerProjects

AndhraPradesh

Annexure7A

Haryana

Annexure7B

Maharashtra

Annexure7C

Punjab

Annexure7D

Rajasthan

Annexure7E

UttarPradesh

Annexure7F

TamilNadu

Annexure7G

Others

Annexure7H

BiogasbasedPowerProjects

Annexure8A

Sd/

Sd/

Sd/

(M.DeenaDayalan)
(V.S.Verma) (Dr.PramodDeo)
Member
Member
Chairperson

[Typetext]

Page48


Annexure1A

[Typetext]

Page49

Assumptions: Wind Energy Projects

S. No.

Assumption Head

Sub-Head

Sub-Head (2)

Unit

Wind Zone
1

1 Power Generation
Capacity
Installed Power Generation Capacity
Capacity Utilization Factor
Deration Factor
Useful Life

MW
%
%
Years

1
20%
0.00%
25

Power Plant Cost

Rs Lacs/MW

575.00

Tariff Period

Years

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
402.50
172.50

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

402.50
0
12
12.30%

Rs Lacs
% p.a
Year
% p.a

172.50
20.00%
10
24.00%
22.40%
10.62%

Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

32.445%
20%
Yes

Depreciation Rate for first 12 years

Depreciation Rate 13th year onwards
Years for 5.83% rate

%
%

2 Project Cost
Capital Cost/MW
3 Sources of Fund
13

Debt: Equity

Debt Component

Equity Component
Equity amount
16% Return on Equity for first 10 years
RoE Period
Return on Equity 11th year onwards
Weighted average of ROE
Discount Rate
4 Financial Assumptions
Fiscal Assumptions

Depreciation
5.83%
1.54%
12

5 Working Capital
For Fixed Charges
O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Interest On Working Capital
6 Operation & Maintenance
Power plant (FY12-13)
Total O & M Expenses Escalation

Months
Months
%

Rs Lacs/MW
%

1
15%
2
12.80%

9.00
5.72%

[Typetext]

Page50

Determination of Tariff Component

1
Units Generation
Installed Capacity
Gross/Net Generation

Fixed Cost
O&M Expenses
Depreciation
Interest on term loan
Interest on working Capital
Return on Equity
Total Fixed Cost

0.817

0.739

0.668

0.604

0.546

0.493

0.446

0.403

0.365

0.330

0.298

0.269

0.244

0.220

0.199

0.180

0.163

0.147

0.133

0.120

0.109

0.098

0.089

Unit
MW
MU

Year--->

1
1
1.75

2
1
1.75

3
1
1.75

4
1
1.75

5
1
1.75

6
1
1.75

7
1
1.75

8
1
1.75

9
1
1.75

10
1
1.75

11
1
1.75

12
1
1.75

13
1
1.75

14
1
1.75

15
1
1.75

16
1
1.75

17
1
1.75

18
1
1.75

19
1
1.75

20
1
1.75

21
1
1.75

22
1
1.75

23
1
1.75

24
1
1.75

25
1
1.75

Unit
Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh

Year--->

1
9.00
33.54
47.44
2.99
34.50
127.47

2
9.51
33.54
43.32
2.93
34.50
123.80

3
10.06
33.54
39.19
2.86
34.50
120.16

4
10.63
33.54
35.07
2.80
34.50
116.55

5
11.24
33.54
30.94
2.75
34.50
112.97

6
11.89
33.54
26.82
2.69
34.50
109.43

7
12.57
33.54
22.69
2.64
34.50
105.93

8
13.28
33.54
18.57
2.58
34.50
102.47

9
14.04
33.54
14.44
2.53
34.50
99.06

10
14.85
33.54
10.31
2.48
34.50
95.69

11
15.70
33.54
6.19
2.59
41.40
99.42

12
16.59
33.54
2.06
2.55
41.40
96.15

13
17.54
8.85
0.00
2.01
41.40
69.80

14
18.55
8.85
6.19
2.20
41.40
77.18

15
19.61
8.85
2.06
2.17
41.40
74.08

16
20.73
8.85
0.00
2.18
41.40
73.16

17
21.92
8.85
0.00
2.24
41.40
74.40

18
23.17
8.85
0.00
2.31
41.40
75.72

19
24.49
8.85
0.00
2.38
41.40
77.12

20
25.90
8.85
0.00
2.45
41.40
78.59

21
27.38
8.85
0.00
2.53
41.40
80.15

22
28.94
8.85
0.00
2.61
41.40
81.80

23
30.60
8.85
0.00
2.70
41.40
83.54

24
32.35
8.85
0.00
2.79
41.40
85.38

25
34.20
8.85
0.00
2.88
41.40
87.33

1
0.51
1.92
2.71
0.17
1.97
7.29

2
0.54
1.92
2.48
0.17
1.97
7.08

3
0.58
1.92
2.24
0.16
1.97
6.88

4
0.61
1.92
2.01
0.16
1.97
6.67

5
0.64
1.92
1.77
0.16
1.97
6.46

6
0.68
1.92
1.53
0.15
1.97
6.26

7
0.72
1.92
1.30
0.15
1.97
6.06

8
0.76
1.92
1.06
0.15
1.97
5.86

9
0.80
1.92
0.83
0.14
1.97
5.67

10
0.85
1.92
0.59
0.14
1.97
5.48

11
0.90
1.92
0.35
0.15
2.37
5.69

12
0.95
1.92
0.12
0.15
2.37
5.50

13
1.00
0.51
0.00
0.12
2.37
3.99

14
1.06
0.51
0.35
0.13
2.37
4.42

15
1.12
0.51
0.12
0.12
2.37
4.24

16
1.19
0.51
0.00
0.12
2.37
4.19

17
1.25
0.51
0.00
0.13
2.37
4.26

18
1.33
0.51
0.00
0.13
2.37
4.33

19
1.40
0.51
0.00
0.14
2.37
4.41

20
1.48
0.51
0.00
0.14
2.37
4.50

21
1.57
0.51
0.00
0.14
2.37
4.59

22
1.66
0.51
0.00
0.15
2.37
4.68

23
1.75
0.51
0.00
0.15
2.37
4.78

24
1.85
0.51
0.00
0.16
2.37
4.89

25
1.96
0.51
0.00
0.17
2.37
5.00

Levallised tariff corresponding to Useful life

Per Unit Cost of Generation
Unit
Levellised
O&M expn
Rs/kWh
0.82
Depreciation
Rs/kWh
1.58
Int. on term loan
Rs/kWh
1.31
Int. on working capital
Rs/kWh
0.15
RoE
Rs/kWh
2.10
Total COG
Rs/kWh
5.96
Levellised
Discount Factor
Levellised Tariff

0.904

5.96

0.904

0.817

0.739

0.668

0.604

0.546

0.493

0.446

0.403

0.365

0.330

0.298

0.269

0.244

0.220

[Typetext]

0.199

0.180

0.163

0.147

0.133

0.120

0.109

0.098

0.089

Rs/Unit

Page51


Determination of Accelerated Depreciation for Wind Power Projects
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.0000%
32.4450%
575.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
15.18

2
5.28%
30.36

3
5.28%
30.36

4
5.28%
30.36

5
5.28%
30.36

6
5.28%
30.36

7
5.28%
30.36

8
5.28%
30.36

9
5.28%
30.36

10
5.28%
30.36

11
5.28%
30.36

12
5.28%
30.36

13
5.28%
30.36

14
5.28%
30.36

15
5.28%
30.36

16
5.28%
30.36

17
5.28%
30.36

18
2.88%
16.56

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
230.00

60%
48.00%
12%
276.00

12%
9.60%
2.40%
55.20

2%
1.92%
0.48%
11.04

0%
0.38%
0.10%
2.21

0%
0.08%
0.02%
0.44

0%
0.02%
0.00%
0.09

0%
0.00%
0.00%
0.02

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Rs Lakh
Rs Lakh
MU

214.82
69.70
0.88
1.00

245.64
79.70
1.75
0.95
0.95

24.84
8.06
1.75
0.86
0.86

-19.32
-6.27
1.75
0.78
0.78

-28.15
-9.13
1.75
0.70
0.70

-29.92
-9.71
1.75
0.64
0.64

-30.27
-9.82
1.75
0.57
0.57

-30.34
-9.84
1.75
0.52
0.52

-30.36
-9.85
1.75
0.47
0.47

-30.36
-9.85
1.75
0.42
0.42

-30.36
-9.85
1.75
0.38
0.38

-30.36
-9.85
1.75
0.35
0.35

-30.36
-9.85
1.75
0.31
0.31

-30.36
-9.85
1.75
0.28
0.28

-30.36
-9.85
1.75
0.26
0.26

-30.36
-9.85
1.75
0.23
0.23

-30.36
-9.85
1.75
0.21
0.21

-16.56
-5.37
1.75
0.19
0.19

0.00
0.00
1.75
0.17
0.17

0.00
0.00
1.75
0.15
0.15

Net Depreciation Benefit

Tax Benefit
Energy generation
Discounting Factor
Levellised benefit

0.60

Rs/Unit

[Typetext]

Page52

Annexure1B
Assumptions: Wind Energy Projects
S. No.

Assumption Head

Sub-Head

Sub-Head (2)

Unit

Wind Zone
2

1 Power Generation
Capacity
Installed Power Generation Capacity
Capacity Utilization Factor
Deration Factor
Useful Life

MW
%
%
Years

1
22%
0.00%
25

Power Plant Cost

Rs Lacs/MW

575.00

Tariff Period

Years

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
402.50
172.50

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

402.50
0
12
12.30%

Rs Lacs
% p.a
Year
% p.a

172.50
20.00%
10
24.00%
22.40%
10.62%

Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

32.445%
20%
Yes

Depreciation Rate for first 12 years

Depreciation Rate 13th year onwards
Years for 5.83% rate

%
%

2 Project Cost
Capital Cost/MW
3 Sources of Fund
13

Debt: Equity

Debt Component

Equity Component
Equity amount
16% Return on Equity for first 10 years
RoE Period
Return on Equity 11th year onwards
Weighted average of ROE
Discount Rate
4 Financial Assumptions
Fiscal Assumptions

Depreciation
5.83%
1.54%
12

5 Working Capital
For Fixed Charges
O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Interest On Working Capital
6 Operation & Maintenance
Power plant (FY12-13)
Total O & M Expenses Escalation

Months
Months
%

Rs Lacs/MW
%

1
15%
2
12.80%

9.00
5.72%

[Typetext]

Page53

Determination of Tariff Component

1
Units Generation
Installed Capacity
Gross/Net Generation

Fixed Cost
O&M Expenses
Depreciation
Interest on term loan
Interest on working Capital
Return on Equity
Total Fixed Cost

0.817

0.739

0.668

0.604

0.546

0.493

0.446

0.403

0.365

0.330

0.298

0.269

0.244

0.220

0.199

0.180

0.163

0.147

0.133

0.120

0.109

0.098

0.089

Unit
MW
MU

Year--->

1
1
1.92

2
1
1.92

3
1
1.92

4
1
1.92

5
1
1.92

6
1
1.92

7
1
1.92

8
1
1.92

9
1
1.92

10
1
1.92

11
1
1.92

12
1
1.92

13
1
1.92

14
1
1.92

15
1
1.92

16
1
1.92

17
1
1.92

18
1
1.92

19
1
1.92

20
1
1.92

21
1
1.92

22
1
1.92

23
1
1.92

24
1
1.92

25
1
1.92

Unit
Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh

Year--->

1
9.00
33.54
47.44
2.99
34.50
127.47

2
9.51
33.54
43.32
2.93
34.50
123.80

3
10.06
33.54
39.19
2.86
34.50
120.16

4
10.63
33.54
35.07
2.80
34.50
116.55

5
11.24
33.54
30.94
2.75
34.50
112.97

6
11.89
33.54
26.82
2.69
34.50
109.43

7
12.57
33.54
22.69
2.64
34.50
105.93

8
13.28
33.54
18.57
2.58
34.50
102.47

9
14.04
33.54
14.44
2.53
34.50
99.06

10
14.85
33.54
10.31
2.48
34.50
95.69

11
15.70
33.54
6.19
2.59
41.40
99.42

12
16.59
33.54
2.06
2.55
41.40
96.15

13
17.54
8.85
0.00
2.01
41.40
69.80

14
18.55
8.85
6.19
2.20
41.40
77.18

15
19.61
8.85
2.06
2.17
41.40
74.08

16
20.73
8.85
0.00
2.18
41.40
73.16

17
21.92
8.85
0.00
2.24
41.40
74.40

18
23.17
8.85
0.00
2.31
41.40
75.72

19
24.49
8.85
0.00
2.38
41.40
77.12

20
25.90
8.85
0.00
2.45
41.40
78.59

21
27.38
8.85
0.00
2.53
41.40
80.15

22
28.94
8.85
0.00
2.61
41.40
81.80

23
30.60
8.85
0.00
2.70
41.40
83.54

24
32.35
8.85
0.00
2.79
41.40
85.38

25
34.20
8.85
0.00
2.88
41.40
87.33

1
0.47
1.74
2.47
0.16
1.79
6.63

2
0.49
1.74
2.25
0.15
1.79
6.44

3
0.52
1.74
2.04
0.15
1.79
6.25

4
0.55
1.74
1.82
0.15
1.79
6.06

5
0.58
1.74
1.61
0.14
1.79
5.88

6
0.62
1.74
1.39
0.14
1.79
5.69

7
0.65
1.74
1.18
0.14
1.79
5.51

8
0.69
1.74
0.97
0.13
1.79
5.33

9
0.73
1.74
0.75
0.13
1.79
5.15

10
0.77
1.74
0.54
0.13
1.79
4.98

11
0.82
1.74
0.32
0.13
2.15
5.17

12
0.86
1.74
0.11
0.13
2.15
5.00

13
0.91
0.46
0.00
0.10
2.15
3.63

14
0.96
0.46
0.32
0.11
2.15
4.01

15
1.02
0.46
0.11
0.11
2.15
3.85

16
1.08
0.46
0.00
0.11
2.15
3.81

17
1.14
0.46
0.00
0.12
2.15
3.87

18
1.21
0.46
0.00
0.12
2.15
3.94

19
1.27
0.46
0.00
0.12
2.15
4.01

20
1.35
0.46
0.00
0.13
2.15
4.09

21
1.42
0.46
0.00
0.13
2.15
4.17

22
1.51
0.46
0.00
0.14
2.15
4.26

23
1.59
0.46
0.00
0.14
2.15
4.35

24
1.68
0.46
0.00
0.15
2.15
4.44

25
1.78
0.46
0.00
0.15
2.15
4.54

Levallised tariff corresponding to Useful life

Per Unit Cost of Generation
Unit
Levellised
O&M expn
Rs/kWh
0.75
Depreciation
Rs/kWh
1.44
Int. on term loan
Rs/kWh
1.19
Int. on working capital
Rs/kWh
0.14
RoE
Rs/kWh
1.91
Total COG
Rs/kWh
5.42
Levellised
Discount Factor
Levellised Tariff

0.904

5.42

[Typetext]

0.904

0.817

0.739

0.668

0.604

0.546

0.493

0.446

0.403

0.365

0.330

0.298

0.269

0.244

0.220

Rs/Unit

Page54

0.199

0.180

0.163

0.147

0.133

0.120

0.109

0.098

0.089

Determination of Accelerated Depreciation for Wind Power Projects

Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.0000%
32.4450%
575.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
15.18

2
5.28%
30.36

3
5.28%
30.36

4
5.28%
30.36

5
5.28%
30.36

6
5.28%
30.36

7
5.28%
30.36

8
5.28%
30.36

9
5.28%
30.36

10
5.28%
30.36

11
5.28%
30.36

12
5.28%
30.36

13
5.28%
30.36

14
5.28%
30.36

15
5.28%
30.36

16
5.28%
30.36

17
5.28%
30.36

18
2.88%
16.56

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
230.00

60%
48.00%
12%
276.00

12%
9.60%
2.40%
55.20

2%
1.92%
0.48%
11.04

0%
0.38%
0.10%
2.21

0%
0.08%
0.02%
0.44

0%
0.02%
0.00%
0.09

0%
0.00%
0.00%
0.02

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Rs Lakh
Rs Lakh
MU

214.82
69.70
0.96
1.00

245.64
79.70
1.93
0.95
0.95

24.84
8.06
1.93
0.86
0.86

-19.32
-6.27
1.93
0.78
0.78

-28.15
-9.13
1.93
0.70
0.70

-29.92
-9.71
1.93
0.64
0.64

-30.27
-9.82
1.93
0.57
0.57

-30.34
-9.84
1.93
0.52
0.52

-30.36
-9.85
1.93
0.47
0.47

-30.36
-9.85
1.93
0.42
0.42

-30.36
-9.85
1.93
0.38
0.38

-30.36
-9.85
1.93
0.35
0.35

-30.36
-9.85
1.93
0.31
0.31

-30.36
-9.85
1.93
0.28
0.28

-30.36
-9.85
1.93
0.26
0.26

-30.36
-9.85
1.93
0.23
0.23

-30.36
-9.85
1.93
0.21
0.21

-16.56
-5.37
1.93
0.19
0.19

0.00
0.00
1.93
0.17
0.17

0.00
0.00
1.93
0.15
0.15

Net Depreciation Benefit

Tax Benefit
Energy generation
Discounting Factor
Levellised benefit

[Typetext]

0.55

Rs/Unit

Page55

Annexure
1C

[Typetext]

Page56

Assumptions: Wind Energy Projects

S. No.

Assumption Head

Sub-Head

Sub-Head (2)

Unit

Wind Zone
3

1 Power Generation
Capacity
Installed Power Generation Capacity
Capacity Utilization Factor
Deration Factor
Useful Life

MW
%
%
Years

1
25%
0.00%
25

Power Plant Cost

Rs Lacs/MW

575.00

Tariff Period

Years

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
402.50
172.50

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

402.50
0
12
12.30%

Rs Lacs
% p.a
Year
% p.a

172.50
20.00%
10
24.00%
22.40%
10.62%

Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

32.445%
20%
Yes

Depreciation Rate for first 12 years

Depreciation Rate 13th year onwards
Years for 5.83% rate

%
%

2 Project Cost
Capital Cost/MW
3 Sources of Fund
13

Debt: Equity

Debt Component

Equity Component
Equity amount
16% Return on Equity for first 10 years
RoE Period
Return on Equity 11th year onwards
Weighted average of ROE
Discount Rate
4 Financial Assumptions
Fiscal Assumptions

Depreciation
5.83%
1.54%
12

5 Working Capital
For Fixed Charges
O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Interest On Working Capital
6 Operation & Maintenance
Power plant (FY12-13)
Total O & M Expenses Escalation

Months
Months
%

Rs Lacs/MW
%

1
15%
2
12.80%

9.00
5.72%

[Typetext]

Page57

Determination of Tariff Component

1
Units Generation
Installed Capacity
Gross/Net Generation

Fixed Cost
O&M Expenses
Depreciation
Interest on term loan
Interest on working Capital
Return on Equity
Total Fixed Cost

0.817

0.739

0.668

0.604

0.546

0.493

0.446

0.403

0.365

0.330

0.298

0.269

0.244

0.220

0.199

0.180

0.163

0.147

0.133

0.120

0.109

0.098

0.089

Year--->

1
1
2.18

2
1
2.18

3
1
2.18

4
1
2.18

5
1
2.18

6
1
2.18

7
1
2.18

8
1
2.18

9
1
2.18

10
1
2.18

11
1
2.18

12
1
2.18

13
1
2.18

14
1
2.18

15
1
2.18

16
1
2.18

17
1
2.18

18
1
2.18

19
1
2.18

20
1
2.18

21
1
2.18

22
1
2.18

23
1
2.18

24
1
2.18

25
1
2.18

Unit
Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh

Year--->

1
9.00
33.54
47.44
2.99
34.50
127.47

2
9.51
33.54
43.32
2.93
34.50
123.80

3
10.06
33.54
39.19
2.86
34.50
120.16

4
10.63
33.54
35.07
2.80
34.50
116.55

5
11.24
33.54
30.94
2.75
34.50
112.97

6
11.89
33.54
26.82
2.69
34.50
109.43

7
12.57
33.54
22.69
2.64
34.50
105.93

8
13.28
33.54
18.57
2.58
34.50
102.47

9
14.04
33.54
14.44
2.53
34.50
99.06

10
14.85
33.54
10.31
2.48
34.50
95.69

11
15.70
33.54
6.19
2.59
41.40
99.42

12
16.59
33.54
2.06
2.55
41.40
96.15

13
17.54
8.85
0.00
2.01
41.40
69.80

14
18.55
8.85
6.19
2.20
41.40
77.18

15
19.61
8.85
2.06
2.17
41.40
74.08

16
20.73
8.85
0.00
2.18
41.40
73.16

17
21.92
8.85
0.00
2.24
41.40
74.40

18
23.17
8.85
0.00
2.31
41.40
75.72

19
24.49
8.85
0.00
2.38
41.40
77.12

20
25.90
8.85
0.00
2.45
41.40
78.59

21
27.38
8.85
0.00
2.53
41.40
80.15

22
28.94
8.85
0.00
2.61
41.40
81.80

23
30.60
8.85
0.00
2.70
41.40
83.54

24
32.35
8.85
0.00
2.79
41.40
85.38

25
34.20
8.85
0.00
2.88
41.40
87.33

1
0.41
1.54
2.17
0.14
1.58
5.84

2
0.44
1.54
1.98
0.13
1.58
5.67

3
0.46
1.54
1.79
0.13
1.58
5.50

4
0.49
1.54
1.61
0.13
1.58
5.34

5
0.51
1.54
1.42
0.13
1.58
5.17

6
0.54
1.54
1.23
0.12
1.58
5.01

7
0.58
1.54
1.04
0.12
1.58
4.85

8
0.61
1.54
0.85
0.12
1.58
4.69

9
0.64
1.54
0.66
0.12
1.58
4.53

10
0.68
1.54
0.47
0.11
1.58
4.38

11
0.72
1.54
0.28
0.12
1.90
4.55

12
0.76
1.54
0.09
0.12
1.90
4.40

13
0.80
0.40
0.00
0.09
1.90
3.20

14
0.85
0.40
0.28
0.10
1.90
3.53

15
0.90
0.40
0.09
0.10
1.90
3.39

16
0.95
0.40
0.00
0.10
1.90
3.35

17
1.00
0.40
0.00
0.10
1.90
3.41

18
1.06
0.40
0.00
0.11
1.90
3.47

19
1.12
0.40
0.00
0.11
1.90
3.53

20
1.19
0.40
0.00
0.11
1.90
3.60

21
1.25
0.40
0.00
0.12
1.90
3.67

22
1.32
0.40
0.00
0.12
1.90
3.74

23
1.40
0.40
0.00
0.12
1.90
3.82

24
1.48
0.40
0.00
0.13
1.90
3.91

25
1.57
0.40
0.00
0.13
1.90
4.00

Levallised tariff corresponding to Useful life

Per Unit Cost of Generation
Unit
Levellised
O&M expn
Rs/kWh
0.66
Depreciation
Rs/kWh
1.27
Int. on term loan
Rs/kWh
1.04
Int. on working capital
Rs/kWh
0.12
RoE
Rs/kWh
1.68
Total COG
Rs/kWh
4.77
Levellised
Discount Factor
Levellised Tariff

0.904

Unit
MW
MU

4.77

0.904

0.817

0.739

0.668

0.604

0.546

0.493

0.446

0.403

0.365

0.330

0.298

0.269

0.244

0.220

0.180

0.163

0.147

0.133

0.120

0.109

0.098

0.089

[Typetext]

0.199

Rs/Unit

Page58


Determination of Accelerated Depreciation for Wind Power Projects
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.0000%
32.4450%
575.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
15.18

2
5.28%
30.36

3
5.28%
30.36

4
5.28%
30.36

5
5.28%
30.36

6
5.28%
30.36

7
5.28%
30.36

8
5.28%
30.36

9
5.28%
30.36

10
5.28%
30.36

11
5.28%
30.36

12
5.28%
30.36

13
5.28%
30.36

14
5.28%
30.36

15
5.28%
30.36

16
5.28%
30.36

17
5.28%
30.36

18
2.88%
16.56

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
230.00

60%
48.00%
12%
276.00

12%
9.60%
2.40%
55.20

2%
1.92%
0.48%
11.04

0%
0.38%
0.10%
2.21

0%
0.08%
0.02%
0.44

0%
0.02%
0.00%
0.09

0%
0.00%
0.00%
0.02

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Rs Lakh
Rs Lakh
MU

214.82
69.70
1.10
1.00

245.64
79.70
2.19
0.95
0.95

24.84
8.06
2.19
0.86
0.86

-19.32
-6.27
2.19
0.78
0.78

-28.15
-9.13
2.19
0.70
0.70

-29.92
-9.71
2.19
0.64
0.64

-30.27
-9.82
2.19
0.57
0.57

-30.34
-9.84
2.19
0.52
0.52

-30.36
-9.85
2.19
0.47
0.47

-30.36
-9.85
2.19
0.42
0.42

-30.36
-9.85
2.19
0.38
0.38

-30.36
-9.85
2.19
0.35
0.35

-30.36
-9.85
2.19
0.31
0.31

-30.36
-9.85
2.19
0.28
0.28

-30.36
-9.85
2.19
0.26
0.26

-30.36
-9.85
2.19
0.23
0.23

-30.36
-9.85
2.19
0.21
0.21

-16.56
-5.37
2.19
0.19
0.19

0.00
0.00
2.19
0.17
0.17

0.00
0.00
2.19
0.15
0.15

Net Depreciation Benefit

Tax Benefit
Energy generation
Discounting Factor
Levellised benefit

0.48

Rs/Unit

[Typetext]

Page59

[Typetext]

Page60

Annexure1D
Assumptions: Wind Energy Projects
S. No.

Assumption Head

Sub-Head

Sub-Head (2)

Unit

Wind Zone
4

1 Power Generation
Capacity
Installed Power Generation Capacity
Capacity Utilization Factor
Deration Factor
Useful Life

MW
%
%
Years

1
30%
0.00%
25

Power Plant Cost

Rs Lacs/MW

575.00

Tariff Period

Years

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
402.50
172.50

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

402.50
0
12
12.30%

Rs Lacs
% p.a
Year
% p.a

172.50
20.00%
10
24.00%
22.40%
10.62%

Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

32.445%
20%
Yes

Depreciation Rate for first 12 years

Depreciation Rate 13th year onwards
Years for 5.83% rate

%
%

2 Project Cost
Capital Cost/MW
3 Sources of Fund
13

Debt: Equity

Debt Component

Equity Component
Equity amount
16% Return on Equity for first 10 years
RoE Period
Return on Equity 11th year onwards
Weighted average of ROE
Discount Rate
4 Financial Assumptions
Fiscal Assumptions

Depreciation
5.83%
1.54%
12

5 Working Capital
For Fixed Charges
O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Interest On Working Capital
6 Operation & Maintenance
Power plant (FY12-13)
Total O & M Expenses Escalation

Months
Months
%

Rs Lacs/MW
%

1
15%
2
12.80%

9.00
5.72%

[Typetext]

Page61

Determination of Tariff Component

1
Units Generation
Installed Capacity
Gross/Net Generation

Fixed Cost
O&M Expenses
Depreciation
Interest on term loan
Interest on working Capital
Return on Equity
Total Fixed Cost

0.817

0.739

0.668

0.604

0.546

0.493

0.446

0.403

0.365

0.330

0.298

0.269

0.244

0.220

0.199

0.180

0.163

0.147

0.133

0.120

0.109

0.098

0.089

Unit
MW
MU

Year--->

1
1
2.62

2
1
2.62

3
1
2.62

4
1
2.62

5
1
2.62

6
1
2.62

7
1
2.62

8
1
2.62

9
1
2.62

10
1
2.62

11
1
2.62

12
1
2.62

13
1
2.62

14
1
2.62

15
1
2.62

16
1
2.62

17
1
2.62

18
1
2.62

19
1
2.62

20
1
2.62

21
1
2.62

22
1
2.62

23
1
2.62

24
1
2.62

25
1
2.62

Unit
Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh

Year--->

1
9.00
33.54
47.44
2.99
34.50
127.47

2
9.51
33.54
43.32
2.93
34.50
123.80

3
10.06
33.54
39.19
2.86
34.50
120.16

4
10.63
33.54
35.07
2.80
34.50
116.55

5
11.24
33.54
30.94
2.75
34.50
112.97

6
11.89
33.54
26.82
2.69
34.50
109.43

7
12.57
33.54
22.69
2.64
34.50
105.93

8
13.28
33.54
18.57
2.58
34.50
102.47

9
14.04
33.54
14.44
2.53
34.50
99.06

10
14.85
33.54
10.31
2.48
34.50
95.69

11
15.70
33.54
6.19
2.59
41.40
99.42

12
16.59
33.54
2.06
2.55
41.40
96.15

13
17.54
8.85
0.00
2.01
41.40
69.80

14
18.55
8.85
6.19
2.20
41.40
77.18

15
19.61
8.85
2.06
2.17
41.40
74.08

16
20.73
8.85
0.00
2.18
41.40
73.16

17
21.92
8.85
0.00
2.24
41.40
74.40

18
23.17
8.85
0.00
2.31
41.40
75.72

19
24.49
8.85
0.00
2.38
41.40
77.12

20
25.90
8.85
0.00
2.45
41.40
78.59

21
27.38
8.85
0.00
2.53
41.40
80.15

22
28.94
8.85
0.00
2.61
41.40
81.80

23
30.60
8.85
0.00
2.70
41.40
83.54

24
32.35
8.85
0.00
2.79
41.40
85.38

25
34.20
8.85
0.00
2.88
41.40
87.33

1
0.34
1.28
1.81
0.11
1.32
4.86

2
0.36
1.28
1.65
0.11
1.32
4.72

3
0.38
1.28
1.50
0.11
1.32
4.58

4
0.41
1.28
1.34
0.11
1.32
4.45

5
0.43
1.28
1.18
0.10
1.32
4.31

6
0.45
1.28
1.02
0.10
1.32
4.17

7
0.48
1.28
0.87
0.10
1.32
4.04

8
0.51
1.28
0.71
0.10
1.32
3.91

9
0.54
1.28
0.55
0.10
1.32
3.78

10
0.57
1.28
0.39
0.09
1.32
3.65

11
0.60
1.28
0.24
0.10
1.58
3.79

12
0.63
1.28
0.08
0.10
1.58
3.67

13
0.67
0.34
0.00
0.08
1.58
2.66

14
0.71
0.34
0.24
0.08
1.58
2.94

15
0.75
0.34
0.08
0.08
1.58
2.83

16
0.79
0.34
0.00
0.08
1.58
2.79

17
0.84
0.34
0.00
0.09
1.58
2.84

18
0.88
0.34
0.00
0.09
1.58
2.89

19
0.93
0.34
0.00
0.09
1.58
2.94

20
0.99
0.34
0.00
0.09
1.58
3.00

21
1.04
0.34
0.00
0.10
1.58
3.06

22
1.10
0.34
0.00
0.10
1.58
3.12

23
1.17
0.34
0.00
0.10
1.58
3.19

24
1.23
0.34
0.00
0.11
1.58
3.26

25
1.30
0.34
0.00
0.11
1.58
3.33

Levallised tariff corresponding to Useful life

Per Unit Cost of Generation
Unit
Levellised
O&M expn
Rs/kWh
0.55
Depreciation
Rs/kWh
1.06
Int. on term loan
Rs/kWh
0.87
Int. on working capital
Rs/kWh
0.10
RoE
Rs/kWh
1.40
Total COG
Rs/kWh
3.97
Levellised
Discount Factor
Levellised Tariff

0.904

3.97

[Typetext]

0.904

0.817

0.739

0.668

0.604

0.546

0.493

0.446

0.403

0.365

0.330

0.298

0.269

0.244

0.220

0.199

0.180

0.163

0.147

0.133

0.120

0.109

0.098

0.089

Rs/Unit

Page62


Determination of Accelerated Depreciation for Wind Power Projects
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.0000%
32.4450%
575.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
15.18

2
5.28%
30.36

3
5.28%
30.36

4
5.28%
30.36

5
5.28%
30.36

6
5.28%
30.36

7
5.28%
30.36

8
5.28%
30.36

9
5.28%
30.36

10
5.28%
30.36

11
5.28%
30.36

12
5.28%
30.36

13
5.28%
30.36

14
5.28%
30.36

15
5.28%
30.36

16
5.28%
30.36

17
5.28%
30.36

18
2.88%
16.56

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
230.00

60%
48.00%
12%
276.00

12%
9.60%
2.40%
55.20

2%
1.92%
0.48%
11.04

0%
0.38%
0.10%
2.21

0%
0.08%
0.02%
0.44

0%
0.02%
0.00%
0.09

0%
0.00%
0.00%
0.02

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Rs Lakh
Rs Lakh
MU

214.82
69.70
1.31
1.00

245.64
79.70
2.63
0.95
0.95

24.84
8.06
2.63
0.86
0.86

-19.32
-6.27
2.63
0.78
0.78

-28.15
-9.13
2.63
0.70
0.70

-29.92
-9.71
2.63
0.64
0.64

-30.27
-9.82
2.63
0.57
0.57

-30.34
-9.84
2.63
0.52
0.52

-30.36
-9.85
2.63
0.47
0.47

-30.36
-9.85
2.63
0.42
0.42

-30.36
-9.85
2.63
0.38
0.38

-30.36
-9.85
2.63
0.35
0.35

-30.36
-9.85
2.63
0.31
0.31

-30.36
-9.85
2.63
0.28
0.28

-30.36
-9.85
2.63
0.26
0.26

-30.36
-9.85
2.63
0.23
0.23

-30.36
-9.85
2.63
0.21
0.21

-16.56
-5.37
2.63
0.19
0.19

0.00
0.00
2.63
0.17
0.17

0.00
0.00
2.63
0.15
0.15

Net Depreciation Benefit

Tax Benefit
Energy generation
Discounting Factor
Levellised benefit

[Typetext]

0.40

Rs/Unit

Page63

[Typetext]

Page64

Annexure1E
Assumptions: Wind Energy Projects
S. No.

Assumption Head

Sub-Head

Sub-Head (2)

Unit

Wind Zone
5

1 Power Generation
Capacity
Installed Power Generation Capacity
Capacity Utilization Factor
Deration Factor
Useful Life

MW
%
%
Years

1
32%
0.00%
25

Power Plant Cost

Rs Lacs/MW

575.00

Tariff Period

Years

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
402.50
172.50

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

402.50
0
12
12.30%

Rs Lacs
% p.a
Year
% p.a

172.50
20.00%
10
24.00%
22.40%
10.62%

Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

32.445%
20%
Yes

Depreciation Rate for first 12 years

Depreciation Rate 13th year onwards
Years for 5.83% rate

%
%

2 Project Cost
Capital Cost/MW
3 Sources of Fund
13

Debt: Equity

Debt Component

Equity Component
Equity amount
16% Return on Equity for first 10 years
RoE Period
Return on Equity 11th year onwards
Weighted average of ROE
Discount Rate
4 Financial Assumptions
Fiscal Assumptions

Depreciation
5.83%
1.54%
12

5 Working Capital
For Fixed Charges
O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Interest On Working Capital
6 Operation & Maintenance
Power plant (FY12-13)
Total O & M Expenses Escalation

Months
Months
%

Rs Lacs/MW
%

1
15%
2
12.80%

9.00
5.72%

[Typetext]

Page65

Determination of Tariff Component

1
Units Generation
Installed Capacity
Gross/Net Generation

Fixed Cost
O&M Expenses
Depreciation
Interest on term loan
Interest on working Capital
Return on Equity
Total Fixed Cost

0.817

0.739

0.668

0.604

0.546

0.493

0.446

0.403

0.365

0.330

0.298

0.269

0.244

0.220

0.199

0.180

0.163

0.147

0.133

0.120

0.109

0.098

0.089

Unit
MW
MU

Year--->

1
1
2.80

2
1
2.80

3
1
2.80

4
1
2.80

5
1
2.80

6
1
2.80

7
1
2.80

8
1
2.80

9
1
2.80

10
1
2.80

11
1
2.80

12
1
2.80

13
1
2.80

14
1
2.80

15
1
2.80

16
1
2.80

17
1
2.80

18
1
2.80

19
1
2.80

20
1
2.80

21
1
2.80

22
1
2.80

23
1
2.80

24
1
2.80

25
1
2.80

Unit
Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh

Year--->

1
9.00
33.54
47.44
2.99
34.50
127.47

2
9.51
33.54
43.32
2.93
34.50
123.80

3
10.06
33.54
39.19
2.86
34.50
120.16

4
10.63
33.54
35.07
2.80
34.50
116.55

5
11.24
33.54
30.94
2.75
34.50
112.97

6
11.89
33.54
26.82
2.69
34.50
109.43

7
12.57
33.54
22.69
2.64
34.50
105.93

8
13.28
33.54
18.57
2.58
34.50
102.47

9
14.04
33.54
14.44
2.53
34.50
99.06

10
14.85
33.54
10.31
2.48
34.50
95.69

11
15.70
33.54
6.19
2.59
41.40
99.42

12
16.59
33.54
2.06
2.55
41.40
96.15

13
17.54
8.85
0.00
2.01
41.40
69.80

14
18.55
8.85
6.19
2.20
41.40
77.18

15
19.61
8.85
2.06
2.17
41.40
74.08

16
20.73
8.85
0.00
2.18
41.40
73.16

17
21.92
8.85
0.00
2.24
41.40
74.40

18
23.17
8.85
0.00
2.31
41.40
75.72

19
24.49
8.85
0.00
2.38
41.40
77.12

20
25.90
8.85
0.00
2.45
41.40
78.59

21
27.38
8.85
0.00
2.53
41.40
80.15

22
28.94
8.85
0.00
2.61
41.40
81.80

23
30.60
8.85
0.00
2.70
41.40
83.54

24
32.35
8.85
0.00
2.79
41.40
85.38

25
34.20
8.85
0.00
2.88
41.40
87.33

1
0.32
1.20
1.70
0.11
1.23
4.56

2
0.34
1.20
1.55
0.10
1.23
4.43

3
0.36
1.20
1.40
0.10
1.23
4.30

4
0.38
1.20
1.25
0.10
1.23
4.17

5
0.40
1.20
1.11
0.10
1.23
4.04

6
0.43
1.20
0.96
0.10
1.23
3.91

7
0.45
1.20
0.81
0.09
1.23
3.79

8
0.48
1.20
0.66
0.09
1.23
3.66

9
0.50
1.20
0.52
0.09
1.23
3.54

10
0.53
1.20
0.37
0.09
1.23
3.42

11
0.56
1.20
0.22
0.09
1.48
3.56

12
0.59
1.20
0.07
0.09
1.48
3.44

13
0.63
0.32
0.00
0.07
1.48
2.50

14
0.66
0.32
0.22
0.08
1.48
2.76

15
0.70
0.32
0.07
0.08
1.48
2.65

16
0.74
0.32
0.00
0.08
1.48
2.62

17
0.78
0.32
0.00
0.08
1.48
2.66

18
0.83
0.32
0.00
0.08
1.48
2.71

19
0.88
0.32
0.00
0.08
1.48
2.76

20
0.93
0.32
0.00
0.09
1.48
2.81

21
0.98
0.32
0.00
0.09
1.48
2.87

22
1.04
0.32
0.00
0.09
1.48
2.93

23
1.09
0.32
0.00
0.10
1.48
2.99

24
1.16
0.32
0.00
0.10
1.48
3.05

25
1.22
0.32
0.00
0.10
1.48
3.12

Levallised tariff corresponding to Useful life

Per Unit Cost of Generation
Unit
Levellised
O&M expn
Rs/kWh
0.51
Depreciation
Rs/kWh
0.99
Int. on term loan
Rs/kWh
0.82
Int. on working capital
Rs/kWh
0.09
RoE
Rs/kWh
1.31
Total COG
Rs/kWh
3.73
Levellised
Discount Factor
Levellised Tariff

0.904

3.73

[Typetext]

0.904

0.817

0.739

0.668

0.604

0.546

0.493

0.446

0.403

0.365

0.330

0.298

0.269

0.244

0.220

0.199

0.180

0.163

0.147

0.133

0.120

0.109

0.098

0.089

Rs/Unit

Page66


Determination of Accelerated Depreciation for Wind Power Projects
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.0000%
32.4450%
575.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
15.18

2
5.28%
30.36

3
5.28%
30.36

4
5.28%
30.36

5
5.28%
30.36

6
5.28%
30.36

7
5.28%
30.36

8
5.28%
30.36

9
5.28%
30.36

10
5.28%
30.36

11
5.28%
30.36

12
5.28%
30.36

13
5.28%
30.36

14
5.28%
30.36

15
5.28%
30.36

16
5.28%
30.36

17
5.28%
30.36

18
2.88%
16.56

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
230.00

60%
48.00%
12%
276.00

12%
9.60%
2.40%
55.20

2%
1.92%
0.48%
11.04

0%
0.38%
0.10%
2.21

0%
0.08%
0.02%
0.44

0%
0.02%
0.00%
0.09

0%
0.00%
0.00%
0.02

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Rs Lakh
Rs Lakh
MU

214.82
69.70
1.40
1.00

245.64
79.70
2.80
0.95
0.95

24.84
8.06
2.80
0.86
0.86

-19.32
-6.27
2.80
0.78
0.78

-28.15
-9.13
2.80
0.70
0.70

-29.92
-9.71
2.80
0.64
0.64

-30.27
-9.82
2.80
0.57
0.57

-30.34
-9.84
2.80
0.52
0.52

-30.36
-9.85
2.80
0.47
0.47

-30.36
-9.85
2.80
0.42
0.42

-30.36
-9.85
2.80
0.38
0.38

-30.36
-9.85
2.80
0.35
0.35

-30.36
-9.85
2.80
0.31
0.31

-30.36
-9.85
2.80
0.28
0.28

-30.36
-9.85
2.80
0.26
0.26

-30.36
-9.85
2.80
0.23
0.23

-30.36
-9.85
2.80
0.21
0.21

-16.56
-5.37
2.80
0.19
0.19

0.00
0.00
2.80
0.17
0.17

0.00
0.00
2.80
0.15
0.15

Net Depreciation Benefit

Tax Benefit
Energy generation
Discounting Factor
Levellised benefit

[Typetext]

0.38

Rs/Unit

Page67

[Typetext]

Page68

Annexure2A
Select Case

Small Hydro: Assumptions Parameters

S. No.

Assumption Head

Sub-Head

Sub-Head (2)

Unit

HP,
Uttarakhand,
NE States
Less than 5
MW

2
3

Power Generation

Project Cost
Sources of Fund

Capacity

Capital Cost/MW

Installed Power Generation Capacity

Capacity Utilization Factor
Auxiliary Consumption
Deration Factor
Useful Life
Power Plant Cost
Tariff Period

MW
%

1
45%
1%
0.00%
35
770
35

%
Years
Rs Lacs/MW
Years

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
539
231

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Intrest Rate

Rs Lacs
years
years
%

539.00
0
12
12.30%

Equity amount
Normative ROE (Post-tax)
Return on Equity for first 10 years
RoE Period
Return on Equity 11th year onwards
Weighted average of ROE
Discount Rate

Rs Lacs
% p.a
Year
% p.a

231.00
16%
20%
10
24.00%
22.86%
10.62%

Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

32.45%
20.00%
Yes

Depreciation Rate for first 12 years

Depreciation Rate 13th year onwards
Years for 5.83% rate

%
%

Debt: Equity

Debt Component

Equity Component

Financial Assumptions

Depreciation

Working Capital

5.83%
0.87%
12

For Fixed Charges

O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors

Months

Intrest On Working Capital

12.80%

Power plant (FY 12-13)

Total O & M Expenses Escalation

25.00
5.72%

Months

1
15%
2

Operation & Maintenance

[Typetext]

Page69

[Typetext]

Page70

Determination of Tariff Component:

Units Generation
Unit
Year--->
Installed Capacity
MW
Net Generation
MU

1
1
3.90

2
1
3.90

3
1
3.90

4
1
3.90

5
1
3.90

6
1
3.90

7
1
3.90

8
1
3.90

9
1
3.90

10
1
3.90

11
1
3.90

12
1
3.90

13
1
3.90

14
1
3.90

15
1
3.90

16
1
3.90

17
1
3.90

18
1
3.90

19
1
3.90

20
1
3.90

21
1
3.90

22
1
3.90

23
1
3.90

24
1
3.90

25
1
3.90

26
1
3.90

27
1
3.90

28
1
3.90

29
1
3.90

30
1
3.90

31
1
3.90

32
1
3.90

33
1
3.90

34
1
3.90

35
1
3.90

Fixed Cost
Unit
Year--->
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
O&M Expenses
Rs Lakh
25.00 26.43 27.94 29.54 31.23 33.02 34.90 36.90 39.01 41.24 43.60 46.10 48.73 51.52 54.47 57.58 60.88 64.36 68.04 71.93 76.05 80.40 85.00 89.86 95.00 100.43 106.18 112.25 118.67 125.46 132.63 140.22 148.24 156.72 165.69
Depreciation
Rs Lakh
44.92 44.92 44.92 44.92 44.92 44.92 44.92 44.92 44.92 44.92 44.92 44.92
6.70
6.70
6.70
6.70
6.70
6.70
6.70
6.70
6.70
6.70
6.70
6.70
6.70
6.70
6.70
6.70
6.70
6.70
6.70
6.70
6.70
6.70
6.70
Interest on term loan
Rs Lakh
63.53 58.01 52.49 46.96 41.44 35.91 30.39 24.86 19.34 13.81
8.29
2.76
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Interest on working Cap Rs Lakh
4.68
4.63
4.59
4.56
4.52
4.50
4.47
4.46
4.45
4.44
4.65
4.66
3.90
4.05
4.20
4.37
4.54
4.72
4.91
5.12
5.33
5.56
5.80
6.06
6.32
6.61
6.91
7.23
7.56
7.92
8.29
8.69
9.11
9.55
10.02
Return on Equity
Rs Lakh
46.20 46.20 46.20 46.20 46.20 46.20 46.20 46.20 46.20 46.20 55.44 55.44 55.44 55.44 55.44 55.44 55.44 55.44 55.44 55.44 55.44 55.44 55.44 55.44 55.44 55.44 55.44 55.44 55.44 55.44 55.44 55.44 55.44 55.44 55.44
Total Fixed Cost
Rs Lakh
184.33 180.19 176.14 172.17 168.31 164.54 160.88 157.34 153.91 150.62 156.90 153.88 114.77 117.71 120.81 124.09 127.55 131.22 135.09 139.19 143.52 148.09 152.93 158.05 163.46 169.18 175.22 181.61 188.37 195.51 203.06 211.05 219.49 228.41 237.84
Levallised tariff corresponding to Useful life
Per Unit Cost of Gene Unit Levellise 1
0.64
1.14
O&M expn
Rs/kWh
1.15
0.88
Depreciation
Rs/kWh
1.63
0.73
Int. on term loan
Rs/kWh
0.12
0.12
Int. on working capital Rs/kWh
1.18
1.27
RoE
Rs/kWh
Total COG
Rs/kWh
4.14
4.72
Levellised
Discount Factor
1
Levellised Tariff
4.14
Rs/Unit

2
0.68
1.15
1.49
0.12
1.18
4.62

3
0.72
1.15
1.34
0.12
1.18
4.51

4
0.76
1.15
1.20
0.12
1.18
4.41

5
0.80
1.15
1.06
0.12
1.18
4.31

6
0.85
1.15
0.92
0.12
1.18
4.22

7
0.89
1.15
0.78
0.11
1.18
4.12

8
0.95
1.15
0.64
0.11
1.18
4.03

9
1.00
1.15
0.50
0.11
1.18
3.94

10
1.06
1.15
0.35
0.11
1.18
3.86

11
1.12
1.15
0.21
0.12
1.42
4.02

12
1.18
1.15
0.07
0.12
1.42
3.94

13
1.25
0.17
0.00
0.10
1.42
2.94

14
1.32
0.17
0.00
0.10
1.42
3.02

15
1.40
0.17
0.00
0.11
1.42
3.10

16
1.48
0.17
0.00
0.11
1.42
3.18

17
1.56
0.17
0.00
0.12
1.42
3.27

18
1.65
0.17
0.00
0.12
1.42
3.36

19
1.74
0.17
0.00
0.13
1.42
3.46

20
1.84
0.17
0.00
0.13
1.42
3.57

21
1.95
0.17
0.00
0.14
1.42
3.68

22
2.06
0.17
0.00
0.14
1.42
3.79

23
2.18
0.17
0.00
0.15
1.42
3.92

24
2.30
0.17
0.00
0.16
1.42
4.05

25
2.43
0.17
0.00
0.16
1.42
4.19

26
2.57
0.17
0.00
0.17
1.42
4.33

27
2.72
0.17
0.00
0.18
1.42
4.49

28
2.88
0.17
0.00
0.19
1.42
4.65

29
3.04
0.17
0.00
0.19
1.42
4.83

30
3.21
0.17
0.00
0.20
1.42
5.01

31
3.40
0.17
0.00
0.21
1.42
5.20

32
3.59
0.17
0.00
0.22
1.42
5.41

33
3.80
0.17
0.00
0.23
1.42
5.62

34
4.02
0.17
0.00
0.24
1.42
5.85

35
4.25
0.17
0.00
0.26
1.42
6.09

0.904

0.817

0.739

0.668

0.604

0.546

0.493

0.446

0.403

0.365

0.330

0.298

0.269

0.244

0.220

0.199

0.180

0.163

0.147

0.133

0.120

0.109

0.098

0.089

0.080

0.073

0.066

0.059

0.054

0.048

0.044

0.040

0.036

0.032

[Typetext]

Page71


Determination of Accelerated Depreciation
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20%
32.45%
770.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
20.33

2
5.28%
40.66

3
5.28%
40.66

4
5.28%
40.66

5
5.28%
40.66

6
5.28%
40.66

7
5.28%
40.66

8
5.28%
40.66

9
5.28%
40.66

10
5.28%
40.66

11
5.28%
40.66

12
5.28%
40.66

13
5.28%
40.66

14
5.28%
40.66

15
5.28%
40.66

16
5.28%
40.66

17
5.28%
40.66

18
2.88%
22.18

19
0.00%
0.00

20
0.00%
0.00

21
0.00%
0.00

22
0.00%
0.00

23
0.00%
0.00

24
0.00%
0.00

25
0.00%
0.00

26
0.00%
0.00

27
0.00%
0.00

28
0.00%
0.00

29
0.00%
0.00

30
0.00%
0.00

31
0.00%
0.00

32
0.00%
0.00

33
0.00%
0.00

34
0.00%
0.00

35
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
308.00

60%
48.00%
12%
369.60

12%
9.60%
2.40%
73.92

2%
1.92%
0.48%
14.78

0%
0.38%
0.10%
2.96

0%
0.08%
0.02%
0.59

0%
0.02%
0.00%
0.12

0%
0.00%
0.00%
0.02

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Rs Lakh
Rs Lakh
MU
Rs/Unit

287.67
93.34
1.95
4.78
1.00

328.94
106.73
3.90
2.73
0.95

33.26
10.79
3.90
0.28
0.86

-25.87
-8.39
3.90
-0.22
0.78

-37.70
-12.23
3.90
-0.31
0.70

-40.06
-13.00
3.90
-0.33
0.64

-40.54
-13.15
3.90
-0.34
0.57

-40.63
-13.18
3.90
-0.34
0.52

-40.65
-13.19
3.90
-0.34
0.47

-40.66
-13.19
3.90
-0.34
0.42

-40.66
-13.19
3.90
-0.34
0.38

-40.66
-13.19
3.90
-0.34
0.35

-40.66
-13.19
3.90
-0.34
0.31

-40.66
-13.19
3.90
-0.34
0.28

-40.66
-13.19
3.90
-0.34
0.26

-40.66
-13.19
3.90
-0.34
0.23

-40.66
-13.19
3.90
-0.34
0.21

-22.18
-7.20
3.90
-0.18
0.19

0.00
0.00
3.90
0.00
0.17

0.00
0.00
3.90
0.00
0.15

0.00
0.00
3.90
0.00
0.14

0.00
0.00
3.90
0.00
0.13

0.00
0.00
3.90
0.00
0.11

0.00
0.00
3.90
0.00
0.10

0.00
0.00
3.90
0.00
0.09

0.00
0.00
3.90
0.00
0.08

0.00
0.00
3.90
0.00
0.08

0.00
0.00
3.90
0.00
0.07

0.00
0.00
3.90
0.00
0.06

0.00
0.00
3.90
0.00
0.06

0.00
0.00
3.90
0.00
0.05

0.00
0.00
3.90
0.00
0.05

0.00
0.00
3.90
0.00
0.04

0.00
0.00
3.90
0.00
0.04

0.00
0.00
3.90
0.00
0.03

Net Depreciation Benefit

Tax Benefit
Energy generation
Per unit benefit
Discounting Factor
Tax Benefit Levellised
Electricity Generation (Levellised)
Levellised benefit

11.95
3.72
0.32 Rs/Unit

[Typetext]

Page72

[Typetext]

Page73

Annexure2B
Select Case

Small Hydro: Assumptions Parameters

S. No.

Assumption Head

Sub-Head

Sub-Head (2)

Unit

HP,
Uttarakhand,
NE States
5 MW to 25
MW

2
3

Power Generation

Project Cost
Sources of Fund

Capacity

Capital Cost/MW

Installed Power Generation Capacity

Capacity Utilization Factor
Auxiliary Consumption
Deration Factor
Useful Life
Power Plant Cost
Tariff Period

MW
%

1
45%
1%
0.00%
35
700
13

%
Years
Rs Lacs/MW
Years

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
490
210

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Intrest Rate

Rs Lacs
years
years
%

490.00
0
12
12.30%

Equity amount
Normative ROE (Post-tax)
Return on Equity for first 10 years
RoE Period
Return on Equity 11th year onwards
Weighted average of ROE
Discount Rate

Rs Lacs
% p.a
Year
% p.a

210.00
16%
20%
10
24.00%
22.86%
10.62%

Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

32.45%
20.00%
Yes

Depreciation Rate for first 12 years

Depreciation Rate 13th year onwards
Years for 5.83% rate

%
%

Debt: Equity

Debt Component

Equity Component

Financial Assumptions

Depreciation

Working Capital

5.83%
0.87%
12

For Fixed Charges

O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors

Months

Intrest On Working Capital

12.80%

Power plant (FY 12-13)

Total O & M Expenses Escalation

18.00
5.72%

Months

1
15%
2

Operation & Maintenance

[Typetext]

Page74

Determination of Tariff Component:

Units Generation
Unit Year--->
Installed Capacity
MW
Net Generation
MU

1
1
3.90

2
1
3.90

3
1
3.90

4
1
3.90

5
1
3.90

6
1
3.90

7
1
3.90

8
1
3.90

9
1
3.90

10
1
3.90

11
1
3.90

12
1
3.90

Fixed Cost
Unit Year--->
1
2
3
4
5
6
7
8
9
10
11
12
O&M Expenses
Rs Lakh
18.00 19.03 20.12 21.27 22.49 23.77 25.13 26.57 28.09 29.70 31.39 33.19
Depreciation
Rs Lakh
40.83 40.83 40.83 40.83 40.83 40.83 40.83 40.83 40.83 40.83 40.83 40.83
Interest on term loan
Rs Lakh
57.76 52.74 47.71 42.69 37.67 32.65 27.62 22.60 17.58 12.56 7.53
2.51
Interest on working Cap Rs Lakh
4.01
3.95
3.90
3.85
3.80
3.76
3.72
3.69
3.66
3.63
3.80
3.78
Return on Equity
Rs Lakh
42.00 42.00 42.00 42.00 42.00 42.00 42.00 42.00 42.00 42.00 50.40 50.40
Total Fixed Cost
Rs Lakh
162.60 158.55 154.56 150.64 146.79 143.01 139.31 135.69 132.16 128.72 133.96 130.71
Levallised tariff corresponding to Useful life
Per Unit Cost of Gene Unit Levellise 1
0.46
0.82
O&M expn
Rs/kWh
1.05
0.80
Depreciation
Rs/kWh
1.48
0.67
Int. on term loan
Rs/kWh
0.10
0.10
Int. on working capital Rs/kWh
1.08
1.15
RoE
Rs/kWh
Total COG
Rs/kWh 3.54
4.17
Levellised
Discount Factor
1
Levellised Tariff
3.54 Rs/Unit

[Typetext]

13
1
3.90

14
1
3.90

15
1
3.90

16
1
3.90

17
1
3.90

18
1
3.90

19
1
3.90

20
1
3.90

21
1
3.90

22
1
3.90

23
1
3.90

24
1
3.90

25
1
3.90

26
1
3.90

27
1
3.90

28
1
3.90

29
1
3.90

30
1
3.90

31
1
3.90

32
1
3.90

33
1
3.90

34
1
3.90

35
1
3.90

13
35.09
6.09
0.00
3.07
50.40
94.64

14
37.10
6.09
0.00
3.17
50.40
96.75

15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
39.22 41.46 43.83 46.34 48.99 51.79 54.75 57.89 61.20 64.70 68.40 72.31 76.45 80.82 85.44 90.33 95.50 100.96 106.73 112.84 119.29
6.09
6.09
6.09
6.09
6.09
6.09
6.09
6.09
6.09
6.09
6.09
6.09
6.09
6.09
6.09
6.09
6.09
6.09
6.09
6.09
6.09
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3.28
3.40
3.52
3.66
3.79
3.94
4.10
4.26
4.43
4.62
4.81
5.01
5.23
5.46
5.70
5.96
6.23
6.51
6.82
7.13
7.47
50.40 50.40 50.40 50.40 50.40 50.40 50.40 50.40 50.40 50.40 50.40 50.40 50.40 50.40 50.40 50.40 50.40 50.40 50.40 50.40 50.40
98.99 101.35 103.84 106.48 109.27 112.22 115.34 118.63 122.12 125.80 129.69 133.81 138.16 142.77 147.63 152.77 158.21 163.96 170.04 176.46 183.25

2
0.49
1.05
1.35
0.10
1.08
4.06

3
0.52
1.05
1.22
0.10
1.08
3.96

4
0.54
1.05
1.09
0.10
1.08
3.86

5
0.58
1.05
0.97
0.10
1.08
3.76

6
0.61
1.05
0.84
0.10
1.08
3.66

7
0.64
1.05
0.71
0.10
1.08
3.57

8
0.68
1.05
0.58
0.09
1.08
3.48

9
0.72
1.05
0.45
0.09
1.08
3.39

10
0.76
1.05
0.32
0.09
1.08
3.30

11
0.80
1.05
0.19
0.10
1.29
3.43

12
0.85
1.05
0.06
0.10
1.29
3.35

13
0.90
0.16
0.00
0.08
1.29
2.43

14
0.95
0.16
0.00
0.08
1.29
2.48

15
1.00
0.16
0.00
0.08
1.29
2.54

16
1.06
0.16
0.00
0.09
1.29
2.60

17
1.12
0.16
0.00
0.09
1.29
2.66

18
1.19
0.16
0.00
0.09
1.29
2.73

19
1.26
0.16
0.00
0.10
1.29
2.80

20
1.33
0.16
0.00
0.10
1.29
2.88

21
1.40
0.16
0.00
0.10
1.29
2.96

22
1.48
0.16
0.00
0.11
1.29
3.04

23
1.57
0.16
0.00
0.11
1.29
3.13

24
1.66
0.16
0.00
0.12
1.29
3.22

25
1.75
0.16
0.00
0.12
1.29
3.32

26
1.85
0.16
0.00
0.13
1.29
3.43

27
1.96
0.16
0.00
0.13
1.29
3.54

28
2.07
0.16
0.00
0.14
1.29
3.66

29
2.19
0.16
0.00
0.15
1.29
3.78

30
2.31
0.16
0.00
0.15
1.29
3.91

31
2.45
0.16
0.00
0.16
1.29
4.05

32
2.59
0.16
0.00
0.17
1.29
4.20

33
2.73
0.16
0.00
0.17
1.29
4.36

34
2.89
0.16
0.00
0.18
1.29
4.52

35
3.06
0.16
0.00
0.19
1.29
4.70

0.904

0.817

0.739

0.668

0.604

0.546

0.493

0.446

0.403

0.365

0.330

0.298

0.269

0.244

0.220

0.199

0.180

0.163

0.147

0.133

0.120

0.109

0.098

0.089

0.080

0.073

0.066

0.059

0.054

0.048

0.044

0.040

0.036

0.032

Page75


Determination of Accelerated Depreciation
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20%
32.45%
700.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
18.48

2
5.28%
36.96

3
5.28%
36.96

4
5.28%
36.96

5
5.28%
36.96

6
5.28%
36.96

7
5.28%
36.96

8
5.28%
36.96

9
5.28%
36.96

10
5.28%
36.96

11
5.28%
36.96

12
5.28%
36.96

13
5.28%
36.96

14
5.28%
36.96

15
5.28%
36.96

16
5.28%
36.96

17
5.28%
36.96

18
2.88%
20.16

19
0.00%
0.00

20
0.00%
0.00

21
0.00%
0.00

22
0.00%
0.00

23
0.00%
0.00

24
0.00%
0.00

25
0.00%
0.00

26
0.00%
0.00

27
0.00%
0.00

28
0.00%
0.00

29
0.00%
0.00

30
0.00%
0.00

31
0.00%
0.00

32
0.00%
0.00

33
0.00%
0.00

34
0.00%
0.00

35
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
280.00

60%
48.00%
12%
336.00

12%
9.60%
2.40%
67.20

2%
1.92%
0.48%
13.44

0%
0.38%
0.10%
2.69

0%
0.08%
0.02%
0.54

0%
0.02%
0.00%
0.11

0%
0.00%
0.00%
0.02

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Rs Lakh
Rs Lakh
MU
Rs/Unit

261.52
84.85
1.95
4.35
1.00

299.04
97.02
3.90
2.49
0.95

30.24
9.81
3.90
0.25
0.86

-23.52
-7.63
3.90
-0.20
0.78

-34.27
-11.12
3.90
-0.28
0.70

-36.42
-11.82
3.90
-0.30
0.64

-36.85
-11.96
3.90
-0.31
0.57

-36.94
-11.98
3.90
-0.31
0.52

-36.96
-11.99
3.90
-0.31
0.47

-36.96
-11.99
3.90
-0.31
0.42

-36.96
-11.99
3.90
-0.31
0.38

-36.96
-11.99
3.90
-0.31
0.35

-36.96
-11.99
3.90
-0.31
0.31

-36.96
-11.99
3.90
-0.31
0.28

-36.96
-11.99
3.90
-0.31
0.26

-36.96
-11.99
3.90
-0.31
0.23

-36.96
-11.99
3.90
-0.31
0.21

-20.16
-6.54
3.90
-0.17
0.19

0.00
0.00
3.90
0.00
0.17

0.00
0.00
3.90
0.00
0.15

0.00
0.00
3.90
0.00
0.14

0.00
0.00
3.90
0.00
0.13

0.00
0.00
3.90
0.00
0.11

0.00
0.00
3.90
0.00
0.10

0.00
0.00
3.90
0.00
0.09

0.00
0.00
3.90
0.00
0.08

0.00
0.00
3.90
0.00
0.08

0.00
0.00
3.90
0.00
0.07

0.00
0.00
3.90
0.00
0.06

0.00
0.00
3.90
0.00
0.06

0.00
0.00
3.90
0.00
0.05

0.00
0.00
3.90
0.00
0.05

0.00
0.00
3.90
0.00
0.04

0.00
0.00
3.90
0.00
0.04

0.00
0.00
3.90
0.00
0.03

Net Depreciation Benefit

Tax Benefit
Energy generation
Per unit benefit
Discounting Factor
Tax Benefit Levellised
Electricity Generation (Levellised)
Levellised benefit

10.86
3.72
0.29

Rs/Unit

[Typetext]

Page76

[Typetext]

Page77

Annexure2C
Select Case

Small Hydro: Assumptions Parameters

S. No.

Assumption Head

Sub-Head

Sub-Head (2)

Unit

Other States

Less than 5
MW
1

2
3

Power Generation

Project Cost
Sources of Fund

Capacity

Capital Cost/MW

Installed Power Generation Capacity

Capacity Utilization Factor
Auxiliary Consumption
Deration Factor
Useful Life
Power Plant Cost
Tariff Period

MW
%

1
30%
1%
0.00%
35
600
35

%
Years
Rs Lacs/MW
Years

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
420
180

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Intrest Rate

Rs Lacs
years
years
%

420.00
0
12
12.30%

Equity amount
Normative ROE (Post-tax)
Return on Equity for first 10 years
RoE Period
Return on Equity 11th year onwards
Weighted average of ROE
Discount Rate

Rs Lacs
% p.a
Year
% p.a

180.00
16%
20%
10
24.00%
22.86%
10.62%

Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

32.45%
20.00%
Yes

Depreciation Rate for first 12 years

Depreciation Rate 13th year onwards
Years for 5.83% rate

%
%

Debt: Equity

Debt Component

Equity Component

Financial Assumptions

Depreciation

Working Capital

5.83%
0.87%
12

For Fixed Charges

O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors

Months

Intrest On Working Capital

12.80%

Power plant (FY 12-13)

Total O & M Expenses Escalation

20.00
5.72%

Months

1
15%
2

Operation & Maintenance

[Typetext]

Page78

[Typetext]

Page79

Determination of Tariff Component:

Units Generation
Unit Year--->
Installed Capacity
MW
Net Generation
MU

1
1
2.60

2
1
2.60

3
1
2.60

4
1
2.60

5
1
2.60

6
1
2.60

7
1
2.60

8
1
2.60

9
1
2.60

10
1
2.60

11
1
2.60

12
1
2.60

Fixed Cost
Unit Year--->
1
2
3
4
5
6
7
8
9
10
11
12
O&M Expenses
Rs Lakh
20.00 21.14 22.35 23.63 24.98 26.41 27.92 29.52 31.21 32.99 34.88 36.88
Depreciation
Rs Lakh
35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00
Interest on term loan
Rs Lakh
49.51 45.20 40.90 36.59 32.29 27.98 23.68 19.37 15.07 10.76 6.46
2.15
Interest on working Cap Rs Lakh
3.67
3.64
3.61
3.58
3.56
3.54
3.52
3.51
3.51
3.51
3.67
3.68
Return on Equity
Rs Lakh
36.00 36.00 36.00 36.00 36.00 36.00 36.00 36.00 36.00 36.00 43.20 43.20
Total Fixed Cost
Rs Lakh
144.18 140.99 137.86 134.81 131.83 128.93 126.13 123.41 120.79 118.27 123.21 120.91
Levallised tariff corresponding to Useful life
Per Unit Cost of Gene Unit Levellise 1
0.77
1.36
O&M expn
Rs/kWh
1.35
1.03
Depreciation
Rs/kWh
1.90
0.86
Int. on term loan
Rs/kWh
0.14
0.14
Int. on working capital Rs/kWh
1.38
1.48
RoE
Rs/kWh
Total COG
Rs/kWh 4.88
5.54
Levellised
Discount Factor
1
Levellised Tariff
4.88 Rs/Unit

[Typetext]

13
1
2.60

14
1
2.60

15
1
2.60

16
1
2.60

17
1
2.60

18
1
2.60

19
1
2.60

20
1
2.60

21
1
2.60

22
1
2.60

23
1
2.60

24
1
2.60

25
1
2.60

26
1
2.60

27
1
2.60

28
1
2.60

29
1
2.60

30
1
2.60

31
1
2.60

32
1
2.60

33
1
2.60

34
1
2.60

35
1
2.60

13
38.99
5.22
0.00
3.10
43.20
90.50

14
41.22
5.22
0.00
3.21
43.20
92.85

15
43.57
5.22
0.00
3.34
43.20
95.33

16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
46.07 48.70 51.49 54.43 57.55 60.84 64.32 68.00 71.89 76.00 80.35 84.94 89.80 94.94 100.37 106.11 112.18 118.59 125.38 132.55
5.22
5.22
5.22
5.22
5.22
5.22
5.22
5.22
5.22
5.22
5.22
5.22
5.22
5.22
5.22
5.22
5.22
5.22
5.22
5.22
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3.47
3.60
3.75
3.90
4.07
4.24
4.42
4.61
4.82
5.03
5.26
5.50
5.75
6.02
6.31
6.61
6.92
7.26
7.61
7.99
43.20 43.20 43.20 43.20 43.20 43.20 43.20 43.20 43.20 43.20 43.20 43.20 43.20 43.20 43.20 43.20 43.20 43.20 43.20 43.20
97.95 100.72 103.65 106.75 110.03 113.49 117.16 121.03 125.12 129.45 134.02 138.86 143.97 149.38 155.09 161.13 167.52 174.27 181.41 188.96

2
0.81
1.35
1.74
0.14
1.38
5.42

3
0.86
1.35
1.57
0.14
1.38
5.30

4
0.91
1.35
1.41
0.14
1.38
5.18

5
0.96
1.35
1.24
0.14
1.38
5.07

6
1.02
1.35
1.08
0.14
1.38
4.96

7
1.07
1.35
0.91
0.14
1.38
4.85

8
1.13
1.35
0.74
0.14
1.38
4.74

9
1.20
1.35
0.58
0.13
1.38
4.64

10
1.27
1.35
0.41
0.13
1.38
4.55

11
1.34
1.35
0.25
0.14
1.66
4.74

12
1.42
1.35
0.08
0.14
1.66
4.65

13
1.50
0.20
0.00
0.12
1.66
3.48

14
1.58
0.20
0.00
0.12
1.66
3.57

15
1.67
0.20
0.00
0.13
1.66
3.66

16
1.77
0.20
0.00
0.13
1.66
3.76

17
1.87
0.20
0.00
0.14
1.66
3.87

18
1.98
0.20
0.00
0.14
1.66
3.98

19
2.09
0.20
0.00
0.15
1.66
4.10

20
2.21
0.20
0.00
0.16
1.66
4.23

21
2.34
0.20
0.00
0.16
1.66
4.36

22
2.47
0.20
0.00
0.17
1.66
4.50

23
2.61
0.20
0.00
0.18
1.66
4.65

24
2.76
0.20
0.00
0.19
1.66
4.81

25
2.92
0.20
0.00
0.19
1.66
4.98

26
3.09
0.20
0.00
0.20
1.66
5.15

27
3.26
0.20
0.00
0.21
1.66
5.34

28
3.45
0.20
0.00
0.22
1.66
5.53

29
3.65
0.20
0.00
0.23
1.66
5.74

30
3.86
0.20
0.00
0.24
1.66
5.96

31
4.08
0.20
0.00
0.25
1.66
6.19

32
4.31
0.20
0.00
0.27
1.66
6.44

33
4.56
0.20
0.00
0.28
1.66
6.70

34
4.82
0.20
0.00
0.29
1.66
6.97

35
5.09
0.20
0.00
0.31
1.66
7.26

0.904

0.817

0.739

0.668

0.604

0.546

0.493

0.446

0.403

0.365

0.330

0.298

0.269

0.244

0.220

0.199

0.180

0.163

0.147

0.133

0.120

0.109

0.098

0.089

0.080

0.073

0.066

0.059

0.054

0.048

0.044

0.040

0.036

0.032

Page80


Determination of Accelerated Depreciation
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20%
32.45%
600.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
15.84

2
5.28%
31.68

3
5.28%
31.68

4
5.28%
31.68

5
5.28%
31.68

6
5.28%
31.68

7
5.28%
31.68

8
5.28%
31.68

9
5.28%
31.68

10
5.28%
31.68

11
5.28%
31.68

12
5.28%
31.68

13
5.28%
31.68

14
5.28%
31.68

15
5.28%
31.68

16
5.28%
31.68

17
5.28%
31.68

18
2.88%
17.28

19
0.00%
0.00

20
0.00%
0.00

21
0.00%
0.00

22
0.00%
0.00

23
0.00%
0.00

24
0.00%
0.00

25
0.00%
0.00

26
0.00%
0.00

27
0.00%
0.00

28
0.00%
0.00

29
0.00%
0.00

30
0.00%
0.00

31
0.00%
0.00

32
0.00%
0.00

33
0.00%
0.00

34
0.00%
0.00

35
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
240.00

60%
48.00%
12%
288.00

12%
9.60%
2.40%
57.60

2%
1.92%
0.48%
11.52

0%
0.38%
0.10%
2.30

0%
0.08%
0.02%
0.46

0%
0.02%
0.00%
0.09

0%
0.00%
0.00%
0.02

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Rs Lakh
Rs Lakh
MU
Rs/Unit

224.16
72.73
1.30
5.59
1.00

256.32
83.16
2.60
3.20
0.95

25.92
8.41
2.60
0.32
0.86

-20.16
-6.54
2.60
-0.25
0.78

-29.38
-9.53
2.60
-0.37
0.70

-31.22
-10.13
2.60
-0.39
0.64

-31.59
-10.25
2.60
-0.39
0.57

-31.66
-10.27
2.60
-0.39
0.52

-31.68
-10.28
2.60
-0.40
0.47

-31.68
-10.28
2.60
-0.40
0.42

-31.68
-10.28
2.60
-0.40
0.38

-31.68
-10.28
2.60
-0.40
0.35

-31.68
-10.28
2.60
-0.40
0.31

-31.68
-10.28
2.60
-0.40
0.28

-31.68
-10.28
2.60
-0.40
0.26

-31.68
-10.28
2.60
-0.40
0.23

-31.68
-10.28
2.60
-0.40
0.21

-17.28
-5.61
2.60
-0.22
0.19

0.00
0.00
2.60
0.00
0.17

0.00
0.00
2.60
0.00
0.15

0.00
0.00
2.60
0.00
0.14

0.00
0.00
2.60
0.00
0.13

0.00
0.00
2.60
0.00
0.11

0.00
0.00
2.60
0.00
0.10

0.00
0.00
2.60
0.00
0.09

0.00
0.00
2.60
0.00
0.08

0.00
0.00
2.60
0.00
0.08

0.00
0.00
2.60
0.00
0.07

0.00
0.00
2.60
0.00
0.06

0.00
0.00
2.60
0.00
0.06

0.00
0.00
2.60
0.00
0.05

0.00
0.00
2.60
0.00
0.05

0.00
0.00
2.60
0.00
0.04

0.00
0.00
2.60
0.00
0.04

0.00
0.00
2.60
0.00
0.03

Net Depreciation Benefit

Tax Benefit
Energy generation
Per unit benefit
Discounting Factor
Tax Benefit Levellised
Electricity Generation (Levellised)
Levellised benefit

9.31
2.48
0.38 Rs/Unit

[Typetext]

Page81

[Typetext]

Page82

Annexure2D
Select Case

Small Hydro: Assumptions Parameters

S. No.

Assumption Head

Sub-Head

Sub-Head (2)

Unit

Other States

5 MW to 25
MW
1

2
3

Power Generation

Project Cost
Sources of Fund

Capacity

Capital Cost/MW

Installed Power Generation Capacity

Capacity Utilization Factor
Auxiliary Consumption
Deration Factor
Useful Life
Power Plant Cost
Tariff Period

MW
%

1
30%
1%
0.00%
35
550
13

%
Years
Rs Lacs/MW
Years

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
385
165

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Intrest Rate

Rs Lacs
years
years
%

385.00
0
12
12.30%

Equity amount
Normative ROE (Post-tax)
Return on Equity for first 10 years
RoE Period
Return on Equity 11th year onwards
Weighted average of ROE
Discount Rate

Rs Lacs
% p.a
Year
% p.a

165.00
16%
20%
10
24.00%
22.86%
10.62%

Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

32.45%
20.00%
Yes

Depreciation Rate for first 12 years

Depreciation Rate 13th year onwards
Years for 5.83% rate

%
%

Debt: Equity

Debt Component

Equity Component

Financial Assumptions

Depreciation

Working Capital

5.83%
0.87%
12

For Fixed Charges

O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors

Months

Intrest On Working Capital

12.80%

Power plant (FY 12-13)

Total O & M Expenses Escalation

14.00
5.72%

Months

1
15%
2

Operation & Maintenance

[Typetext]

Page83

[Typetext]

Page84

Determination of Tariff Component:

Units Generation
Unit Year--->
1
Installed Capacity
MW
1
Net Generation
MU
2.60

2
1
2.60

3
1
2.60

4
1
2.60

5
1
2.60

6
1
2.60

7
1
2.60

8
1
2.60

9
1
2.60

10
1
2.60

11
1
2.60

3
15.65
32.08
37.49
3.05
33.00
121.27

4
16.54
32.08
33.54
3.02
33.00
118.18

5
17.49
32.08
29.60
2.98
33.00
115.15

6
18.49
32.08
25.65
2.95
33.00
112.17

7
19.55
32.08
21.70
2.91
33.00
109.25

8
20.66
32.08
17.76
2.89
33.00
106.39

9
21.85
32.08
13.81
2.86
33.00
103.60

10
23.10
32.08
9.87
2.84
33.00
100.89

11
24.42
32.08
5.92
2.97
39.60
104.99

2
0.57
1.23
1.59
0.12
1.27
4.78

3
0.60
1.23
1.44
0.12
1.27
4.66

4
0.64
1.23
1.29
0.12
1.27
4.54

5
0.67
1.23
1.14
0.11
1.27
4.43

6
0.71
1.23
0.99
0.11
1.27
4.31

7
0.75
1.23
0.83
0.11
1.27
4.20

8
0.79
1.23
0.68
0.11
1.27
4.09

9
0.84
1.23
0.53
0.11
1.27
3.98

10
0.89
1.23
0.38
0.11
1.27
3.88

11
0.94
1.23
0.23
0.11
1.52
4.04

12
0.99
1.23
0.08
0.11
1.52
3.94

0.904

0.817

0.739

0.668

0.604

0.546

0.493

0.446

0.403

0.365

0.330

Fixed Cost
Unit Year--->
1
2
O&M Expenses
Rs Lakh
14.00 14.80
Depreciation
Rs Lakh
32.08 32.08
Interest on term loan
Rs Lakh
45.38 41.44
3.14
3.10
Interest on working Cap Rs Lakh
Return on Equity
Rs Lakh
33.00 33.00
Total Fixed Cost
Rs Lakh
127.61 124.42
Levallised tariff corresponding to Useful life
Per Unit Cost of Gene Unit Levellise 1
0.54
O&M expn
Rs/kWh 0.96
1.23
Depreciation
Rs/kWh 0.94
1.74
Int. on term loan
Rs/kWh 0.79
0.12
Int. on working capital Rs/kWh 0.12
1.27
RoE
Rs/kWh 1.36
Total COG
Rs/kWh 4.16
4.90
Levellised
Discount Factor
1
Levellised Tariff
4.16 Rs/Unit

[Typetext]

12
1
2.60

13
1
2.60

14
1
2.60

15
1
2.60

16
1
2.60

17
1
2.60

18
1
2.60

19
1
2.60

20
1
2.60

21
1
2.60

22
1
2.60

23
1
2.60

24
1
2.60

25
1
2.60

26
1
2.60

27
1
2.60

28
1
2.60

29
1
2.60

30
1
2.60

31
1
2.60

32
1
2.60

33
1
2.60

34
1
2.60

35
1
2.60

12
13
25.81 27.29
32.08 4.78
1.97
0.00
2.96
2.40
39.60 39.60
102.43 74.07

14
28.85
4.78
0.00
2.48
39.60
75.71

15
30.50
4.78
0.00
2.56
39.60
77.45

16
32.25
4.78
0.00
2.65
39.60
79.28

17
34.09
4.78
0.00
2.75
39.60
81.22

18
36.04
4.78
0.00
2.85
39.60
83.28

19
38.10
4.78
0.00
2.96
39.60
85.45

20
40.28
4.78
0.00
3.07
39.60
87.74

21
42.59
4.78
0.00
3.20
39.60
90.16

22
45.02
4.78
0.00
3.32
39.60
92.73

23
47.60
4.78
0.00
3.46
39.60
95.44

24
25
26
27
28
29
30
31
32
33
34
35
50.32 53.20 56.24 59.46 62.86 66.46 70.26 74.28 78.52 83.02 87.76 92.78
4.78
4.78
4.78
4.78
4.78
4.78
4.78
4.78
4.78
4.78
4.78
4.78
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3.60
3.75
3.91
4.08
4.26
4.44
4.64
4.85
5.08
5.31
5.56
5.82
39.60 39.60 39.60 39.60 39.60 39.60 39.60 39.60 39.60 39.60 39.60 39.60
98.30 101.33 104.53 107.92 111.50 115.28 119.28 123.51 127.98 132.71 137.71 142.99

13
1.05
0.18
0.00
0.09
1.52
2.85

14
1.11
0.18
0.00
0.10
1.52
2.91

15
1.17
0.18
0.00
0.10
1.52
2.98

16
1.24
0.18
0.00
0.10
1.52
3.05

17
1.31
0.18
0.00
0.11
1.52
3.12

18
1.39
0.18
0.00
0.11
1.52
3.20

19
1.46
0.18
0.00
0.11
1.52
3.28

20
1.55
0.18
0.00
0.12
1.52
3.37

21
1.64
0.18
0.00
0.12
1.52
3.47

22
1.73
0.18
0.00
0.13
1.52
3.56

23
1.83
0.18
0.00
0.13
1.52
3.67

24
1.93
0.18
0.00
0.14
1.52
3.78

25
2.04
0.18
0.00
0.14
1.52
3.89

26
2.16
0.18
0.00
0.15
1.52
4.02

27
2.29
0.18
0.00
0.16
1.52
4.15

28
2.42
0.18
0.00
0.16
1.52
4.29

29
2.55
0.18
0.00
0.17
1.52
4.43

30
2.70
0.18
0.00
0.18
1.52
4.58

31
2.85
0.18
0.00
0.19
1.52
4.75

32
3.02
0.18
0.00
0.20
1.52
4.92

33
3.19
0.18
0.00
0.20
1.52
5.10

34
3.37
0.18
0.00
0.21
1.52
5.29

35
3.57
0.18
0.00
0.22
1.52
5.50

0.298

0.269

0.244

0.220

0.199

0.180

0.163

0.147

0.133

0.120

0.109

0.098

0.089

0.080

0.073

0.066

0.059

0.054

0.048

0.044

0.040

0.036

0.032

Page85


Determination of Accelerated Depreciation
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20%
32.45%
550.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
14.52

2
5.28%
29.04

3
5.28%
29.04

4
5.28%
29.04

5
5.28%
29.04

6
5.28%
29.04

7
5.28%
29.04

8
5.28%
29.04

9
5.28%
29.04

10
5.28%
29.04

11
5.28%
29.04

12
5.28%
29.04

13
5.28%
29.04

14
5.28%
29.04

15
5.28%
29.04

16
5.28%
29.04

17
5.28%
29.04

18
2.88%
15.84

19
0.00%
0.00

20
0.00%
0.00

21
0.00%
0.00

22
0.00%
0.00

23
0.00%
0.00

24
0.00%
0.00

25
0.00%
0.00

26
0.00%
0.00

27
0.00%
0.00

28
0.00%
0.00

29
0.00%
0.00

30
0.00%
0.00

31
0.00%
0.00

32
0.00%
0.00

33
0.00%
0.00

34
0.00%
0.00

35
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
220.00

60%
48.00%
12%
264.00

12%
9.60%
2.40%
52.80

2%
1.92%
0.48%
10.56

0%
0.38%
0.10%
2.11

0%
0.08%
0.02%
0.42

0%
0.02%
0.00%
0.08

0%
0.00%
0.00%
0.02

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Rs Lakh
Rs Lakh
MU
Rs/Unit

205.48
66.67
1.30
5.12
1.00

234.96
76.23
2.60
2.93
0.95

23.76
7.71
2.60
0.30
0.86

-18.48
-6.00
2.60
-0.23
0.78

-26.93
-8.74
2.60
-0.34
0.70

-28.62
-9.28
2.60
-0.36
0.64

-28.96
-9.39
2.60
-0.36
0.57

-29.02
-9.42
2.60
-0.36
0.52

-29.04
-9.42
2.60
-0.36
0.47

-29.04
-9.42
2.60
-0.36
0.42

-29.04
-9.42
2.60
-0.36
0.38

-29.04
-9.42
2.60
-0.36
0.35

-29.04
-9.42
2.60
-0.36
0.31

-29.04
-9.42
2.60
-0.36
0.28

-29.04
-9.42
2.60
-0.36
0.26

-29.04
-9.42
2.60
-0.36
0.23

-29.04
-9.42
2.60
-0.36
0.21

-15.84
-5.14
2.60
-0.20
0.19

0.00
0.00
2.60
0.00
0.17

0.00
0.00
2.60
0.00
0.15

0.00
0.00
2.60
0.00
0.14

0.00
0.00
2.60
0.00
0.13

0.00
0.00
2.60
0.00
0.11

0.00
0.00
2.60
0.00
0.10

0.00
0.00
2.60
0.00
0.09

0.00
0.00
2.60
0.00
0.08

0.00
0.00
2.60
0.00
0.08

0.00
0.00
2.60
0.00
0.07

0.00
0.00
2.60
0.00
0.06

0.00
0.00
2.60
0.00
0.06

0.00
0.00
2.60
0.00
0.05

0.00
0.00
2.60
0.00
0.05

0.00
0.00
2.60
0.00
0.04

0.00
0.00
2.60
0.00
0.04

0.00
0.00
2.60
0.00
0.03

Net Depreciation Benefit

Tax Benefit
Energy generation
Per unit benefit
Discounting Factor
Tax Benefit Levellised
Electricity Generation (Levellised)
Levellised benefit

8.53
2.48
0.34 Rs/Unit

[Typetext]

Page86

[Typetext]

Page87

Annexure-3A
Select State

AP

Assumption for Biomass Power Project Parameters

S. No.
Assumption Head
1 Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
Auxillary Consumption during stablisation
Auxillary Consumption after stabilisation
PLF(Stablization for 6 months)
PLF(during first year after Stablization)
PLF(second year onwards)
Useful Life

MW
%
%
%
%
%
Years

1
10%
10%
60%
70%
80%
20

Power Plant Cost

Rs Lacs/MW

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
311.50
133.50

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

311.50
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

133.50
20.00%
10.00
24.00%

2 Project Cost
Capital Cost/MW

445.00

3 Financial Assumptions
Debt: Equity

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.445%
20.000%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital

For Fixed Charges

O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
Fuel Related Assumptions
Heat Rate
After Stabilisation period
During Stablization Period

Months
Months

1
15%
2

Months
%

4
12.80%

Kcal/kwh
Kcal/kwh

4000
4000

Base Price

Rs/T

2315

GCV - Biomass
Biomass Price Escalation Factor

Kcal/kg

Biomass

7 Operation & Maintenance

power plant
Total O & M Expenses Escalation

[Typetext]

3300
5.00%
24.00
5.72%

Page88

Determination of Tariff Component: Biomass Power Projects

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.57
5.12

2
1
7.01
0.70
6.31

3
1
7.01
0.70
6.31

4
1
7.01
0.70
6.31

5
1
7.01
0.70
6.31

6
1
7.01
0.70
6.31

7
1
7.01
0.70
6.31

8
1
7.01
0.70
6.31

9
1
7.01
0.70
6.31

10
1
7.01
0.70
6.31

11
1
7.01
0.70
6.31

12
1
7.01
0.70
6.31

13
1
7.01
0.70
6.31

14
1
7.01
0.70
6.31

15
1
7.01
0.70
6.31

16
1
7.01
0.70
6.31

17
1
7.01
0.70
6.31

18
1
7.01
0.70
6.31

19
1
7.01
0.70
6.31

20
1
7.01
0.70
6.31

Unit
Rs Lakh
Rs/kWh

Year--->

1
159.78
3.12

2
206.48
3.27

3
216.81
3.44

4
227.65
3.61

5
239.03
3.79

6
250.98
3.98

7
263.53
4.18

8
276.70
4.39

9
290.54
4.61

10
305.07
4.84

11
320.32
5.08

12
336.34
5.33

13
353.15
5.60

14
370.81
5.88

15
389.35
6.17

16
408.82
6.48

17
429.26
6.81

18
450.72
7.15

19
473.26
7.50

20
496.92
7.88

1
24.00
25.96
36.72
13.65
26.70
127.03
2.48

2
25.37
25.96
33.53
16.71
26.70
128.27
2.03

3
26.82
25.96
30.33
17.39
26.70
127.21
2.02

4
28.36
25.96
27.14
18.11
26.70
126.27
2.00

5
29.98
25.96
23.95
18.87
26.70
125.46
1.99

6
31.70
25.96
20.75
19.67
26.70
124.78
1.98

7
33.51
25.96
17.56
20.52
26.70
124.24
1.97

8
35.43
25.96
14.37
21.41
26.70
123.86
1.96

9
37.45
25.96
11.18
22.35
26.70
123.64
1.96

10
39.59
25.96
7.98
23.34
26.70
123.58
1.96

11
41.86
25.96
4.79
24.51
32.04
129.15
2.05

12
44.25
25.96
1.60
25.61
32.04
129.46
2.05

13
46.78
11.13
0.00
26.48
32.04
116.43
1.85

14
49.46
11.13
0.00
27.78
32.04
120.40
1.91

15
52.29
11.13
0.00
29.14
32.04
124.59
1.98

16
55.28
11.13
0.00
30.57
32.04
129.01
2.05

17
58.44
11.13
0.00
32.07
32.04
133.68
2.12

18
61.78
11.13
0.00
33.65
32.04
138.60
2.20

19
65.32
11.13
0.00
35.31
32.04
143.79
2.28

20
69.06
11.13
0.00
37.05
32.04
149.27
2.37

1
3.12
0.47
0.51
0.72
0.27
0.52
5.60

2
3.27
0.40
0.41
0.53
0.26
0.42
5.31

3
3.44
0.43
0.41
0.48
0.28
0.42
5.45

4
3.61
0.45
0.41
0.43
0.29
0.42
5.61

5
3.79
0.48
0.41
0.38
0.30
0.42
5.78

6
3.98
0.50
0.41
0.33
0.31
0.42
5.96

7
4.18
0.53
0.41
0.28
0.33
0.42
6.15

8
4.39
0.56
0.41
0.23
0.34
0.42
6.35

9
4.61
0.59
0.41
0.18
0.35
0.42
6.57

10
4.84
0.63
0.41
0.13
0.37
0.42
6.80

11
5.08
0.66
0.41
0.08
0.39
0.51
7.13

12
5.33
0.70
0.41
0.03
0.41
0.51
7.39

13
5.60
0.74
0.18
0.00
0.42
0.51
7.45

14
5.88
0.78
0.18
0.00
0.44
0.51
7.79

15
6.17
0.83
0.18
0.00
0.46
0.51
8.15

16
6.48
0.88
0.18
0.00
0.48
0.51
8.53

17
6.81
0.93
0.18
0.00
0.51
0.51
8.93

18
7.15
0.98
0.18
0.00
0.53
0.51
9.34

19
7.50
1.04
0.18
0.00
0.56
0.51
9.78

20
7.88
1.09
0.18
0.00
0.59
0.51
10.25

Fixed Cost
Unit
Year--->
O&M Expenses
Rs Lakh
Depreciation
Rs Lakh
Interest on term loan
Rs Lakh
Interest on working Capital
Rs Lakh
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
Per unit Fixed Cost
Rs/kWh
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
Variable COG
Rs/kWh
4.40
O&M expn
Rs/kWh
0.58
Depreciation
Rs/kWh
0.38
Int. on term loan
Rs/kWh
0.31
Int. on working capital
Rs/kWh
0.34
RoE
Rs/kWh
0.46
Total COG
Rs/kWh
6.46
Levellised Tariff
Discount Factor
Variable Cost (FY2012-13)
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

[Typetext]

Unit

Year -->

1
1

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

8
0.493

9
0.446

10
0.403

11
0.365

12
0.330

13
0.298

14
0.269

3.12 Rs/Kwh
2.06 Rs/Kwh
5.18 Rs/Kwh

Page89

15
0.244

16
0.220

17
0.199

18
0.180

19
0.163

20
0.147

Determination of Accelerated Depreciation for Biomass Power Project

Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.000%
32.45%
445.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
11.75

2
5.28%
23.50

3
5.28%
23.50

4
5.28%
23.50

5
5.28%
23.50

6
5.28%
23.50

7
5.28%
23.50

8
5.28%
23.50

9
5.28%
23.50

10
5.28%
23.50

11
5.28%
23.50

12
5.28%
23.50

13
5.28%
23.50

14
5.28%
23.50

15
5.28%
23.50

16
5.28%
23.50

17
5.28%
23.50

18
2.88%
12.82

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
178.00

60%
48.00%
12%
213.60

12%
9.60%
2.40%
42.72

2%
1.92%
0.48%
8.54

0%
0.38%
0.10%
1.71

0%
0.08%
0.02%
0.34

0%
0.02%
0.00%
0.07

0%
0.00%
0.00%
0.01

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

166.25
53.94
2.56
2.11

190.10
61.68
6.31
0.98

19.22
6.24
6.31
0.10

-14.95
-4.85
6.31
-0.08

-21.79
-7.07
6.31
-0.11

-23.15
-7.51
6.31
-0.12

-23.43
-7.60
6.31
-0.12

-23.48
-7.62
6.31
-0.12

-23.49
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-12.82
-4.16
6.31
-0.07

0.00
0.00
6.31
0.00

0.00
0.00
6.31
0.00

1.00

0.95

0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

0.31

0.28

0.26

0.23

0.21

0.19

0.17

0.15

Discounting Factor
Levellised benefit

[Typetext]

0.13

(Rs/kWh)

Page90

[Typetext]

Page91

Annexure-3B
Select State

Harayana

Assumption for Biomass Power Project Parameters

S. No.
Assumption Head
1 Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
Auxillary Consumption during stablisation
Auxillary Consumption after stabilisation
PLF(Stablization for 6 months)
PLF(during first year after Stablization)
PLF(second year onwards)
Useful Life

MW
%
%
%
%
%
Years

1
10%
10%
60%
70%
80%
20

Power Plant Cost

Rs Lacs/MW

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
311.50
133.50

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

311.50
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

133.50
20.00%
10.00
24.00%

2 Project Cost
Capital Cost/MW

445.00

3 Financial Assumptions
Debt: Equity

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.445%
20.000%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital
For Fixed Charges
O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
6

Fuel Related Assumptions

Heat Rate

After Stabilisation period

During Stablization Period

Months
Months

1
15%
2

Months
%

4
12.80%

Kcal/kwh
Kcal/kwh

4000
4000

Biomass
Base Price

Rs/T

GCV - Biomass
Biomass Price Escalation Factor

Kcal/kg

7 Operation & Maintenance

power plant
Total O & M Expenses Escalation

[Typetext]

2635
3300
5.00%
24.00
5.72%

Page92

Determination of Tariff Component: Biomass Power Projects

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.57
5.12

2
1
7.01
0.70
6.31

3
1
7.01
0.70
6.31

4
1
7.01
0.70
6.31

5
1
7.01
0.70
6.31

6
1
7.01
0.70
6.31

7
1
7.01
0.70
6.31

8
1
7.01
0.70
6.31

9
1
7.01
0.70
6.31

10
1
7.01
0.70
6.31

11
1
7.01
0.70
6.31

12
1
7.01
0.70
6.31

13
1
7.01
0.70
6.31

14
1
7.01
0.70
6.31

15
1
7.01
0.70
6.31

16
1
7.01
0.70
6.31

17
1
7.01
0.70
6.31

18
1
7.01
0.70
6.31

19
1
7.01
0.70
6.31

20
1
7.01
0.70
6.31

Unit
Rs Lakh
Rs/kWh

Year--->

1
181.86
3.55

2
235.02
3.73

3
246.77
3.91

4
259.11
4.11

5
272.07
4.31

6
285.67
4.53

7
299.96
4.76

8
314.95
4.99

9
330.70
5.24

10
347.24
5.51

11
364.60
5.78

12
382.83
6.07

13
401.97
6.37

14
422.07
6.69

15
443.17
7.03

16
465.33
7.38

17
488.60
7.75

18
513.03
8.13

19
538.68
8.54

20
565.61
8.97

1
24.00
25.96
36.72
15.10
26.70
128.47
2.51

2
25.37
25.96
33.53
18.58
26.70
130.13
2.06

3
26.82
25.96
30.33
19.35
26.70
129.16
2.05

4
28.36
25.96
27.14
20.17
26.70
128.32
2.03

5
29.98
25.96
23.95
21.03
26.70
127.62
2.02

6
31.70
25.96
20.75
21.94
26.70
127.05
2.01

7
33.51
25.96
17.56
22.90
26.70
126.63
2.01

8
35.43
25.96
14.37
23.91
26.70
126.36
2.00

9
37.45
25.96
11.18
24.98
26.70
126.26
2.00

10
39.59
25.96
7.98
26.10
26.70
126.33
2.00

11
41.86
25.96
4.79
27.40
32.04
132.05
2.09

12
44.25
25.96
1.60
28.65
32.04
132.50
2.10

13
46.78
11.13
0.00
29.68
32.04
119.62
1.90

14
49.46
11.13
0.00
31.13
32.04
123.75
1.96

15
52.29
11.13
0.00
32.66
32.04
128.11
2.03

16
55.28
11.13
0.00
34.26
32.04
132.71
2.10

17
58.44
11.13
0.00
35.95
32.04
137.56
2.18

18
61.78
11.13
0.00
37.72
32.04
142.67
2.26

19
65.32
11.13
0.00
39.58
32.04
148.07
2.35

20
69.06
11.13
0.00
41.54
32.04
153.76
2.44

1
3.55
0.47
0.51
0.72
0.29
0.52
6.06

2
3.73
0.40
0.41
0.53
0.29
0.42
5.79

3
3.91
0.43
0.41
0.48
0.31
0.42
5.96

4
4.11
0.45
0.41
0.43
0.32
0.42
6.14

5
4.31
0.48
0.41
0.38
0.33
0.42
6.34

6
4.53
0.50
0.41
0.33
0.35
0.42
6.54

7
4.76
0.53
0.41
0.28
0.36
0.42
6.76

8
4.99
0.56
0.41
0.23
0.38
0.42
7.00

9
5.24
0.59
0.41
0.18
0.40
0.42
7.25

10
5.51
0.63
0.41
0.13
0.41
0.42
7.51

11
5.78
0.66
0.41
0.08
0.43
0.51
7.87

12
6.07
0.70
0.41
0.03
0.45
0.51
8.17

13
6.37
0.74
0.18
0.00
0.47
0.51
8.27

14
6.69
0.78
0.18
0.00
0.49
0.51
8.65

15
7.03
0.83
0.18
0.00
0.52
0.51
9.06

16
7.38
0.88
0.18
0.00
0.54
0.51
9.48

17
7.75
0.93
0.18
0.00
0.57
0.51
9.93

18
8.13
0.98
0.18
0.00
0.60
0.51
10.40

19
8.54
1.04
0.18
0.00
0.63
0.51
10.89

20
8.97
1.09
0.18
0.00
0.66
0.51
11.41

Fixed Cost
Unit
Year--->
O&M Expenses
Rs Lakh
Depreciation
Rs Lakh
Interest on term loan
Rs Lakh
Interest on working Capital
Rs Lakh
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
Per unit Fixed Cost
Rs/kWh
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
Variable COG
Rs/kWh
5.01
O&M expn
Rs/kWh
0.58
Depreciation
Rs/kWh
0.38
Int. on term loan
Rs/kWh
0.31
Int. on working capital
Rs/kWh
0.38
RoE
Rs/kWh
0.46
Total COG
Rs/kWh
7.11
Levellised Tariff
Discount Factor

Unit

Variable Cost (FY2012-13)

Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

[Typetext]

Year -->

1
1

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

8
0.493

9
0.446

10
0.403

11
0.365

12
0.330

13
0.298

14
0.269

3.55 Rs/Kwh
2.10 Rs/Kwh
5.65 Rs/Kwh

15
0.244

16
0.220

17
0.199

18
0.180

19
0.163

20
0.147

Page93


Determination of Accelerated Depreciation for Biomass Power Project
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.000%
32.45%
445.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
11.75

2
5.28%
23.50

3
5.28%
23.50

4
5.28%
23.50

5
5.28%
23.50

6
5.28%
23.50

7
5.28%
23.50

8
5.28%
23.50

9
5.28%
23.50

10
5.28%
23.50

11
5.28%
23.50

12
5.28%
23.50

13
5.28%
23.50

14
5.28%
23.50

15
5.28%
23.50

16
5.28%
23.50

17
5.28%
23.50

18
2.88%
12.82

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
178.00

60%
48.00%
12%
213.60

12%
9.60%
2.40%
42.72

2%
1.92%
0.48%
8.54

0%
0.38%
0.10%
1.71

0%
0.08%
0.02%
0.34

0%
0.02%
0.00%
0.07

0%
0.00%
0.00%
0.01

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

166.25
53.94
2.56
2.11

190.10
61.68
6.31
0.98

19.22
6.24
6.31
0.10

-14.95
-4.85
6.31
-0.08

-21.79
-7.07
6.31
-0.11

-23.15
-7.51
6.31
-0.12

-23.43
-7.60
6.31
-0.12

-23.48
-7.62
6.31
-0.12

-23.49
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-12.82
-4.16
6.31
-0.07

0.00
0.00
6.31
0.00

0.00
0.00
6.31
0.00

1.00

0.95

0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

0.31

0.28

0.26

0.23

0.21

0.19

0.17

0.15

Discounting Factor
Levellised benefit

[Typetext]

0.13

(Rs/kWh)

Page94

Annexure-3C
Select State

Maharashtra

Assumption for Biomass Power Project Parameters

S. No.
Assumption Head
1 Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
Auxillary Consumption during stablisation
Auxillary Consumption after stabilisation
PLF(Stablization for 6 months)
PLF(during first year after Stablization)
PLF(second year onwards)
Useful Life

MW
%
%
%
%
%
Years

1
10%
10%
60%
70%
80%
20

Power Plant Cost

Rs Lacs/MW

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
311.50
133.50

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

311.50
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

133.50
20.00%
10.00
24.00%

2 Project Cost
Capital Cost/MW

445.00

3 Financial Assumptions
Debt: Equity

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.445%
20.000%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital
For Fixed Charges
O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
6

Fuel Related Assumptions

Heat Rate

After Stabilisation period

During Stablization Period

Months
Months

1
15%
2

Months
%

4
12.80%

Kcal/kwh
Kcal/kwh

4000
4000

Biomass
Base Price

Rs/T

GCV - Biomass
Biomass Price Escalation Factor

Kcal/kg

7 Operation & Maintenance

power plant
Total O & M Expenses Escalation

[Typetext]

2695
3300
5.00%
24.00
5.72%

Page95


Determination of Tariff Component: Biomass Power Projects
Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.57
5.12

2
1
7.01
0.70
6.31

3
1
7.01
0.70
6.31

4
1
7.01
0.70
6.31

5
1
7.01
0.70
6.31

6
1
7.01
0.70
6.31

7
1
7.01
0.70
6.31

8
1
7.01
0.70
6.31

9
1
7.01
0.70
6.31

10
1
7.01
0.70
6.31

11
1
7.01
0.70
6.31

12
1
7.01
0.70
6.31

13
1
7.01
0.70
6.31

14
1
7.01
0.70
6.31

15
1
7.01
0.70
6.31

16
1
7.01
0.70
6.31

17
1
7.01
0.70
6.31

18
1
7.01
0.70
6.31

19
1
7.01
0.70
6.31

20
1
7.01
0.70
6.31

Unit
Rs Lakh
Rs/kWh

Year--->

1
186.00
3.63

2
240.37
3.81

3
252.39
4.00

4
265.01
4.20

5
278.26
4.41

6
292.18
4.63

7
306.79
4.86

8
322.12
5.11

9
338.23
5.36

10
355.14
5.63

11
372.90
5.91

12
391.54
6.21

13
411.12
6.52

14
431.68
6.84

15
453.26
7.19

16
475.92
7.55

17
499.72
7.92

18
524.71
8.32

19
550.94
8.74

20
578.49
9.17

1
24.00
25.96
36.72
15.37
26.70
128.74
2.51

2
25.37
25.96
33.53
18.93
26.70
130.48
2.07

3
26.82
25.96
30.33
19.72
26.70
129.53
2.05

4
28.36
25.96
27.14
20.55
26.70
128.71
2.04

5
29.98
25.96
23.95
21.44
26.70
128.02
2.03

6
31.70
25.96
20.75
22.37
26.70
127.47
2.02

7
33.51
25.96
17.56
23.35
26.70
127.07
2.01

8
35.43
25.96
14.37
24.38
26.70
126.83
2.01

9
37.45
25.96
11.18
25.47
26.70
126.75
2.01

10
39.59
25.96
7.98
26.62
26.70
126.85
2.01

11
41.86
25.96
4.79
27.94
32.04
132.59
2.10

12
44.25
25.96
1.60
29.22
32.04
133.07
2.11

13
46.78
11.13
0.00
30.27
32.04
120.22
1.91

14
49.46
11.13
0.00
31.76
32.04
124.38
1.97

15
52.29
11.13
0.00
33.32
32.04
128.77
2.04

16
55.28
11.13
0.00
34.96
32.04
133.40
2.12

17
58.44
11.13
0.00
36.68
32.04
138.28
2.19

18
61.78
11.13
0.00
38.49
32.04
143.44
2.27

19
65.32
11.13
0.00
40.39
32.04
148.87
2.36

20
69.06
11.13
0.00
42.38
32.04
154.60
2.45

1
3.63
0.47
0.51
0.72
0.30
0.52
6.14

2
3.81
0.40
0.41
0.53
0.30
0.42
5.88

3
4.00
0.43
0.41
0.48
0.31
0.42
6.06

4
4.20
0.45
0.41
0.43
0.33
0.42
6.24

5
4.41
0.48
0.41
0.38
0.34
0.42
6.44

6
4.63
0.50
0.41
0.33
0.35
0.42
6.65

7
4.86
0.53
0.41
0.28
0.37
0.42
6.88

8
5.11
0.56
0.41
0.23
0.39
0.42
7.12

9
5.36
0.59
0.41
0.18
0.40
0.42
7.37

10
5.63
0.63
0.41
0.13
0.42
0.42
7.64

11
5.91
0.66
0.41
0.08
0.44
0.51
8.01

12
6.21
0.70
0.41
0.03
0.46
0.51
8.32

13
6.52
0.74
0.18
0.00
0.48
0.51
8.42

14
6.84
0.78
0.18
0.00
0.50
0.51
8.82

15
7.19
0.83
0.18
0.00
0.53
0.51
9.23

16
7.55
0.88
0.18
0.00
0.55
0.51
9.66

17
7.92
0.93
0.18
0.00
0.58
0.51
10.12

18
8.32
0.98
0.18
0.00
0.61
0.51
10.59

19
8.74
1.04
0.18
0.00
0.64
0.51
11.10

20
9.17
1.09
0.18
0.00
0.67
0.51
11.62

Fixed Cost
Unit
Year--->
O&M Expenses
Rs Lakh
Depreciation
Rs Lakh
Interest on term loan
Rs Lakh
Interest on working Capital
Rs Lakh
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
Per unit Fixed Cost
Rs/kWh
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
Variable COG
Rs/kWh
5.12
O&M expn
Rs/kWh
0.58
Depreciation
Rs/kWh
0.38
Int. on term loan
Rs/kWh
0.31
Int. on working capital
Rs/kWh
0.39
RoE
Rs/kWh
0.46
Total COG
Rs/kWh
7.23
Levellised Tariff
Discount Factor
Variable Cost (FY2012-13)
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

[Typetext]

Unit

Year -->

1
1

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

8
0.493

9
0.446

10
0.403

11
0.365

12
0.330

13
0.298

14
0.269

3.63 Rs/Kwh
2.11 Rs/Kwh
5.74 Rs/Kwh

15
0.244

16
0.220

17
0.199

18
0.180

19
0.163

20
0.147

Page96

Determination of Accelerated Depreciation for Biomass Power Project

Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.000%
32.45%
445.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
11.75

2
5.28%
23.50

3
5.28%
23.50

4
5.28%
23.50

5
5.28%
23.50

6
5.28%
23.50

7
5.28%
23.50

8
5.28%
23.50

9
5.28%
23.50

10
5.28%
23.50

11
5.28%
23.50

12
5.28%
23.50

13
5.28%
23.50

14
5.28%
23.50

15
5.28%
23.50

16
5.28%
23.50

17
5.28%
23.50

18
2.88%
12.82

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
178.00

60%
48.00%
12%
213.60

12%
9.60%
2.40%
42.72

2%
1.92%
0.48%
8.54

0%
0.38%
0.10%
1.71

0%
0.08%
0.02%
0.34

0%
0.02%
0.00%
0.07

0%
0.00%
0.00%
0.01

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

166.25
53.94
2.56
2.11

190.10
61.68
6.31
0.98

19.22
6.24
6.31
0.10

-14.95
-4.85
6.31
-0.08

-21.79
-7.07
6.31
-0.11

-23.15
-7.51
6.31
-0.12

-23.43
-7.60
6.31
-0.12

-23.48
-7.62
6.31
-0.12

-23.49
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-12.82
-4.16
6.31
-0.07

0.00
0.00
6.31
0.00

0.00
0.00
6.31
0.00

1.00

0.95

0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

0.31

0.28

0.26

0.23

0.21

0.19

0.17

0.15

Discounting Factor
Levellised benefit

[Typetext]

0.13

(Rs/kWh)

Page97

[Typetext]

Page98

Annexure-3D
Select State

Punjab

Assumption for Biomass Power Project Parameters

S. No.
Assumption Head
1 Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
Auxillary Consumption during stablisation
Auxillary Consumption after stabilisation
PLF(Stablization for 6 months)
PLF(during first year after Stablization)
PLF(second year onwards)
Useful Life

MW
%
%
%
%
%
Years

1
10%
10%
60%
70%
80%
20

Power Plant Cost

Rs Lacs/MW

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
311.50
133.50

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

311.50
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

133.50
20.00%
10.00
24.00%

2 Project Cost
Capital Cost/MW

445.00

3 Financial Assumptions
Debt: Equity

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.445%
20.000%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital
For Fixed Charges
O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
Fuel Related Assumptions
After Stabilisation period
Heat Rate
During Stablization Period

Months
Months

1
15%
2

Months
%

4
12.80%

Kcal/kwh
Kcal/kwh

4000
4000

Base Price

Rs/T

2756

GCV - Biomass
Biomass Price Escalation Factor

Kcal/kg

Biomass

7 Operation & Maintenance

power plant
Total O & M Expenses Escalation

[Typetext]

3300
5.00%
24.00
5.72%

Page99

Determination of Tariff Component: Biomass Power Projects

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.57
5.12

2
1
7.01
0.70
6.31

3
1
7.01
0.70
6.31

4
1
7.01
0.70
6.31

5
1
7.01
0.70
6.31

6
1
7.01
0.70
6.31

7
1
7.01
0.70
6.31

8
1
7.01
0.70
6.31

9
1
7.01
0.70
6.31

10
1
7.01
0.70
6.31

11
1
7.01
0.70
6.31

12
1
7.01
0.70
6.31

13
1
7.01
0.70
6.31

14
1
7.01
0.70
6.31

15
1
7.01
0.70
6.31

16
1
7.01
0.70
6.31

17
1
7.01
0.70
6.31

18
1
7.01
0.70
6.31

19
1
7.01
0.70
6.31

20
1
7.01
0.70
6.31

Unit
Rs Lakh
Rs/kWh

Year--->

1
190.21
3.71

2
245.82
3.90

3
258.11
4.09

4
271.01
4.30

5
284.56
4.51

6
298.79
4.74

7
313.73
4.97

8
329.42
5.22

9
345.89
5.48

10
363.18
5.76

11
381.34
6.05

12
400.41
6.35

13
420.43
6.67

14
441.45
7.00

15
463.52
7.35

16
486.70
7.72

17
511.03
8.10

18
536.58
8.51

19
563.41
8.93

20
591.58
9.38

1
24.00
25.96
36.72
15.64
26.70
129.02
2.52

2
25.37
25.96
33.53
19.28
26.70
130.84
2.07

3
26.82
25.96
30.33
20.09
26.70
129.91
2.06

4
28.36
25.96
27.14
20.95
26.70
129.10
2.05

5
29.98
25.96
23.95
21.85
26.70
128.43
2.04

6
31.70
25.96
20.75
22.80
26.70
127.91
2.03

7
33.51
25.96
17.56
23.80
26.70
127.53
2.02

8
35.43
25.96
14.37
24.86
26.70
127.31
2.02

9
37.45
25.96
11.18
25.97
26.70
127.25
2.02

10
39.59
25.96
7.98
27.14
26.70
127.38
2.02

11
41.86
25.96
4.79
28.50
32.04
133.14
2.11

12
44.25
25.96
1.60
29.80
32.04
133.65
2.12

13
46.78
11.13
0.00
30.88
32.04
120.83
1.92

14
49.46
11.13
0.00
32.40
32.04
125.02
1.98

15
52.29
11.13
0.00
33.99
32.04
129.44
2.05

16
55.28
11.13
0.00
35.66
32.04
134.11
2.13

17
58.44
11.13
0.00
37.42
32.04
139.02
2.20

18
61.78
11.13
0.00
39.26
32.04
144.21
2.29

19
65.32
11.13
0.00
41.20
32.04
149.69
2.37

20
69.06
11.13
0.00
43.24
32.04
155.46
2.46

1
3.71
0.47
0.51
0.72
0.31
0.52
6.23

2
3.90
0.40
0.41
0.53
0.31
0.42
5.97

3
4.09
0.43
0.41
0.48
0.32
0.42
6.15

4
4.30
0.45
0.41
0.43
0.33
0.42
6.34

5
4.51
0.48
0.41
0.38
0.35
0.42
6.55

6
4.74
0.50
0.41
0.33
0.36
0.42
6.77

7
4.97
0.53
0.41
0.28
0.38
0.42
7.00

8
5.22
0.56
0.41
0.23
0.39
0.42
7.24

9
5.48
0.59
0.41
0.18
0.41
0.42
7.50

10
5.76
0.63
0.41
0.13
0.43
0.42
7.78

11
6.05
0.66
0.41
0.08
0.45
0.51
8.16

12
6.35
0.70
0.41
0.03
0.47
0.51
8.47

13
6.67
0.74
0.18
0.00
0.49
0.51
8.58

14
7.00
0.78
0.18
0.00
0.51
0.51
8.98

15
7.35
0.83
0.18
0.00
0.54
0.51
9.40

16
7.72
0.88
0.18
0.00
0.57
0.51
9.84

17
8.10
0.93
0.18
0.00
0.59
0.51
10.31

18
8.51
0.98
0.18
0.00
0.62
0.51
10.79

19
8.93
1.04
0.18
0.00
0.65
0.51
11.31

20
9.38
1.09
0.18
0.00
0.69
0.51
11.84

Fixed Cost
Unit
Year--->
O&M Expenses
Rs Lakh
Depreciation
Rs Lakh
Interest on term loan
Rs Lakh
Interest on working Capital
Rs Lakh
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
Per unit Fixed Cost
Rs/kWh
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
Variable COG
Rs/kWh
5.24
O&M expn
Rs/kWh
0.58
Depreciation
Rs/kWh
0.38
Int. on term loan
Rs/kWh
0.31
Int. on working capital
Rs/kWh
0.40
RoE
Rs/kWh
0.46
Total COG
Rs/kWh
7.35
Levellised Tariff
Discount Factor
Variable Cost (FY2012-13)
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

[Typetext]

Unit

Year -->

1
1

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

8
0.493

9
0.446

10
0.403

11
0.365

12
0.330

13
0.298

14
0.269

3.71 Rs/Kwh
2.12 Rs/Kwh
5.83 Rs/Kwh

15
0.244

16
0.220

17
0.199

18
0.180

19
0.163

20
0.147

Page100


Determination of Accelerated Depreciation for Biomass Power Project
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.000%
32.45%
445.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
11.75

2
5.28%
23.50

3
5.28%
23.50

4
5.28%
23.50

5
5.28%
23.50

6
5.28%
23.50

7
5.28%
23.50

8
5.28%
23.50

9
5.28%
23.50

10
5.28%
23.50

11
5.28%
23.50

12
5.28%
23.50

13
5.28%
23.50

14
5.28%
23.50

15
5.28%
23.50

16
5.28%
23.50

17
5.28%
23.50

18
2.88%
12.82

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
178.00

60%
48.00%
12%
213.60

12%
9.60%
2.40%
42.72

2%
1.92%
0.48%
8.54

0%
0.38%
0.10%
1.71

0%
0.08%
0.02%
0.34

0%
0.02%
0.00%
0.07

0%
0.00%
0.00%
0.01

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

166.25
53.94
2.56
2.11

190.10
61.68
6.31
0.98

19.22
6.24
6.31
0.10

-14.95
-4.85
6.31
-0.08

-21.79
-7.07
6.31
-0.11

-23.15
-7.51
6.31
-0.12

-23.43
-7.60
6.31
-0.12

-23.48
-7.62
6.31
-0.12

-23.49
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-12.82
-4.16
6.31
-0.07

0.00
0.00
6.31
0.00

0.00
0.00
6.31
0.00

1.00

0.95

0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

0.31

0.28

0.26

0.23

0.21

0.19

0.17

0.15

Discounting Factor
Levellised benefit

[Typetext]

0.13

(Rs/kWh)

Page101

[Typetext]

Page102

Annexure-3E
Select State

Rajasthan

Assumption for Biomass Power Project Parameters

S. No.
1

Assumption Head
Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
MW
Auxillary Consumption during stablisatio%
Auxillary Consumption after stabilisation%
PLF(Stablization for 6 months)
%
PLF(during first year after Stablization) %
PLF(second year onwards)
%
Useful Life
Years

1
10%
10%
60%
70%
80%
20

2 Project Cost
Capital Cost/MW
3 Financial Assumptions
Debt: Equity

Power Plant Cost

Rs Lacs/MW

445.00

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
311.50
133.50

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

311.50
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

133.50
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.445%
20.000%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital

For Fixed Charges

O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
Fuel Related Assumptions
After Stabilisation period
Heat Rate
During Stablization Period

Months
Months

1
15%
2

Months
%

4
12.80%

Kcal/kwh
Kcal/kwh

4000
4000

Biomass
Base Price
GCV - Biomass
Biomass Price Escalation Factor
7 Operation & Maintenance
power plant
Total O & M Expenses Escalation

[Typetext]

Rs/T
Kcal/kg

2300
3300
5.00%
24.00
5.72%

Page103

Determination of Tariff Component: Biomass Power Projects

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.57
5.12

2
1
7.01
0.70
6.31

3
1
7.01
0.70
6.31

4
1
7.01
0.70
6.31

5
1
7.01
0.70
6.31

6
1
7.01
0.70
6.31

7
1
7.01
0.70
6.31

8
1
7.01
0.70
6.31

9
1
7.01
0.70
6.31

10
1
7.01
0.70
6.31

11
1
7.01
0.70
6.31

12
1
7.01
0.70
6.31

13
1
7.01
0.70
6.31

14
1
7.01
0.70
6.31

15
1
7.01
0.70
6.31

16
1
7.01
0.70
6.31

17
1
7.01
0.70
6.31

18
1
7.01
0.70
6.31

19
1
7.01
0.70
6.31

20
1
7.01
0.70
6.31

Unit
Rs Lakh
Rs/kWh

Year--->

1
158.74
3.10

2
205.14
3.25

3
215.40
3.42

4
226.17
3.59

5
237.48
3.77

6
249.35
3.95

7
261.82
4.15

8
274.91
4.36

9
288.66
4.58

10
303.09
4.81

11
318.24
5.05

12
334.16
5.30

13
350.86
5.56

14
368.41
5.84

15
386.83
6.13

16
406.17
6.44

17
426.48
6.76

18
447.80
7.10

19
470.19
7.45

20
493.70
7.83

1
24.00
25.96
36.72
13.58
26.70
126.96
2.48

2
25.37
25.96
33.53
16.62
26.70
128.18
2.03

3
26.82
25.96
30.33
17.30
26.70
127.11
2.02

4
28.36
25.96
27.14
18.01
26.70
126.17
2.00

5
29.98
25.96
23.95
18.77
26.70
125.35
1.99

6
31.70
25.96
20.75
19.56
26.70
124.67
1.98

7
33.51
25.96
17.56
20.41
26.70
124.13
1.97

8
35.43
25.96
14.37
21.29
26.70
123.74
1.96

9
37.45
25.96
11.18
22.23
26.70
123.51
1.96

10
39.59
25.96
7.98
23.21
26.70
123.45
1.96

11
41.86
25.96
4.79
24.37
32.04
129.02
2.05

12
44.25
25.96
1.60
25.47
32.04
129.31
2.05

13
46.78
11.13
0.00
26.33
32.04
116.28
1.84

14
49.46
11.13
0.00
27.62
32.04
120.25
1.91

15
52.29
11.13
0.00
28.97
32.04
124.43
1.97

16
55.28
11.13
0.00
30.39
32.04
128.84
2.04

17
58.44
11.13
0.00
31.89
32.04
133.50
2.12

18
61.78
11.13
0.00
33.46
32.04
138.41
2.19

19
65.32
11.13
0.00
35.11
32.04
143.59
2.28

20
69.06
11.13
0.00
36.84
32.04
149.06
2.36

1
3.10
0.47
0.51
0.72
0.27
0.52
5.58

2
3.25
0.40
0.41
0.53
0.26
0.42
5.28

3
3.42
0.43
0.41
0.48
0.27
0.42
5.43

4
3.59
0.45
0.41
0.43
0.29
0.42
5.59

5
3.77
0.48
0.41
0.38
0.30
0.42
5.75

6
3.95
0.50
0.41
0.33
0.31
0.42
5.93

7
4.15
0.53
0.41
0.28
0.32
0.42
6.12

8
4.36
0.56
0.41
0.23
0.34
0.42
6.32

9
4.58
0.59
0.41
0.18
0.35
0.42
6.53

10
4.81
0.63
0.41
0.13
0.37
0.42
6.76

11
5.05
0.66
0.41
0.08
0.39
0.51
7.09

12
5.30
0.70
0.41
0.03
0.40
0.51
7.35

13
5.56
0.74
0.18
0.00
0.42
0.51
7.41

14
5.84
0.78
0.18
0.00
0.44
0.51
7.75

15
6.13
0.83
0.18
0.00
0.46
0.51
8.11

16
6.44
0.88
0.18
0.00
0.48
0.51
8.48

17
6.76
0.93
0.18
0.00
0.51
0.51
8.88

18
7.10
0.98
0.18
0.00
0.53
0.51
9.29

19
7.45
1.04
0.18
0.00
0.56
0.51
9.73

20
7.83
1.09
0.18
0.00
0.58
0.51
10.19

Fixed Cost
Unit
Year--->
O&M Expenses
Rs Lakh
Depreciation
Rs Lakh
Interest on term loan
Rs Lakh
Interest on working Capital
Rs Lakh
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
Per unit Fixed Cost
Rs/kWh
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
Variable COG
Rs/kWh
4.37
O&M expn
Rs/kWh
0.58
Depreciation
Rs/kWh
0.38
Int. on term loan
Rs/kWh
0.31
Int. on working capital
Rs/kWh
0.34
RoE
Rs/kWh
0.46
Total COG
Rs/kWh
6.43
Levellised Tariff
Discount Factor
Variable Cost (FY2012-13)
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

[Typetext]

Unit

Year -->

1
1

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

8
0.493

9
0.446

10
0.403

11
0.365

12
0.330

13
0.298

14
0.269

3.10 Rs/Kwh
2.06 Rs/Kwh
5.16 Rs/Kwh

15
0.244

16
0.220

17
0.199

18
0.180

19
0.163

20
0.147

Page104


Determination of Accelerated Depreciation for Biomass Power Project
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.000%
32.45%
445.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
11.75

2
5.28%
23.50

3
5.28%
23.50

4
5.28%
23.50

5
5.28%
23.50

6
5.28%
23.50

7
5.28%
23.50

8
5.28%
23.50

9
5.28%
23.50

10
5.28%
23.50

11
5.28%
23.50

12
5.28%
23.50

13
5.28%
23.50

14
5.28%
23.50

15
5.28%
23.50

16
5.28%
23.50

17
5.28%
23.50

18
2.88%
12.82

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
178.00

60%
48.00%
12%
213.60

12%
9.60%
2.40%
42.72

2%
1.92%
0.48%
8.54

0%
0.38%
0.10%
1.71

0%
0.08%
0.02%
0.34

0%
0.02%
0.00%
0.07

0%
0.00%
0.00%
0.01

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

166.25
53.94
2.56
2.11

190.10
61.68
6.31
0.98

19.22
6.24
6.31
0.10

-14.95
-4.85
6.31
-0.08

-21.79
-7.07
6.31
-0.11

-23.15
-7.51
6.31
-0.12

-23.43
-7.60
6.31
-0.12

-23.48
-7.62
6.31
-0.12

-23.49
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-12.82
-4.16
6.31
-0.07

0.00
0.00
6.31
0.00

0.00
0.00
6.31
0.00

1.00

0.95

0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

0.31

0.28

0.26

0.23

0.21

0.19

0.17

0.15

Discounting Factor
Levellised benefit

[Typetext]

0.13

(Rs/kWh)

Page105

[Typetext]

Page106

Annexure-3F
Select State

TN

Assumption for Biomass Power Project Parameters

S. No.
1

Assumption Head
Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
MW
Auxillary Consumption during stablisatio%
Auxillary Consumption after stabilisation%
PLF(Stablization for 6 months)
%
PLF(during first year after Stablization) %
PLF(second year onwards)
%
Useful Life
Years

1
10%
10%
60%
70%
80%
20

2 Project Cost
Capital Cost/MW
3 Financial Assumptions
Debt: Equity

Power Plant Cost

Rs Lacs/MW

445.00

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
311.50
133.50

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

311.50
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

133.50
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.445%
20.000%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital

For Fixed Charges

O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
Fuel Related Assumptions
After Stabilisation period
Heat Rate
During Stablization Period

Months
Months

1
15%
2

Months
%

4
12.80%

Kcal/kwh
Kcal/kwh

4000
4000

Biomass
Base Price
GCV - Biomass
Biomass Price Escalation Factor
7 Operation & Maintenance
power plant
Total O & M Expenses Escalation

[Typetext]

Rs/T
Kcal/kg

2277
3300
5.00%
24.00
5.72%

Page107

Determination of Tariff Component: Biomass Power Projects

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.57
5.12

2
1
7.01
0.70
6.31

3
1
7.01
0.70
6.31

4
1
7.01
0.70
6.31

5
1
7.01
0.70
6.31

6
1
7.01
0.70
6.31

7
1
7.01
0.70
6.31

8
1
7.01
0.70
6.31

9
1
7.01
0.70
6.31

10
1
7.01
0.70
6.31

11
1
7.01
0.70
6.31

12
1
7.01
0.70
6.31

13
1
7.01
0.70
6.31

14
1
7.01
0.70
6.31

15
1
7.01
0.70
6.31

16
1
7.01
0.70
6.31

17
1
7.01
0.70
6.31

18
1
7.01
0.70
6.31

19
1
7.01
0.70
6.31

20
1
7.01
0.70
6.31

Unit
Rs Lakh
Rs/kWh

Year--->

1
157.15
3.07

2
203.09
3.22

3
213.25
3.38

4
223.91
3.55

5
235.10
3.73

6
246.86
3.91

7
259.20
4.11

8
272.16
4.32

9
285.77
4.53

10
300.06
4.76

11
315.06
5.00

12
330.82
5.25

13
347.36
5.51

14
364.72
5.78

15
382.96
6.07

16
402.11
6.38

17
422.21
6.69

18
443.32
7.03

19
465.49
7.38

20
488.76
7.75

1
24.00
25.96
36.72
13.48
26.70
126.86
2.48

2
25.37
25.96
33.53
16.49
26.70
128.04
2.03

3
26.82
25.96
30.33
17.16
26.70
126.97
2.01

4
28.36
25.96
27.14
17.87
26.70
126.02
2.00

5
29.98
25.96
23.95
18.61
26.70
125.20
1.99

6
31.70
25.96
20.75
19.40
26.70
124.51
1.97

7
33.51
25.96
17.56
20.23
26.70
123.96
1.97

8
35.43
25.96
14.37
21.11
26.70
123.56
1.96

9
37.45
25.96
11.18
22.04
26.70
123.32
1.96

10
39.59
25.96
7.98
23.02
26.70
123.25
1.95

11
41.86
25.96
4.79
24.16
32.04
128.81
2.04

12
44.25
25.96
1.60
25.25
32.04
129.10
2.05

13
46.78
11.13
0.00
26.10
32.04
116.05
1.84

14
49.46
11.13
0.00
27.38
32.04
120.00
1.90

15
52.29
11.13
0.00
28.72
32.04
124.17
1.97

16
55.28
11.13
0.00
30.13
32.04
128.57
2.04

17
58.44
11.13
0.00
31.61
32.04
133.22
2.11

18
61.78
11.13
0.00
33.16
32.04
138.11
2.19

19
65.32
11.13
0.00
34.80
32.04
143.28
2.27

20
69.06
11.13
0.00
36.52
32.04
148.74
2.36

1
3.07
0.47
0.51
0.72
0.26
0.52
5.54

2
3.22
0.40
0.41
0.53
0.26
0.42
5.25

3
3.38
0.43
0.41
0.48
0.27
0.42
5.39

4
3.55
0.45
0.41
0.43
0.28
0.42
5.55

5
3.73
0.48
0.41
0.38
0.30
0.42
5.71

6
3.91
0.50
0.41
0.33
0.31
0.42
5.89

7
4.11
0.53
0.41
0.28
0.32
0.42
6.08

8
4.32
0.56
0.41
0.23
0.33
0.42
6.27

9
4.53
0.59
0.41
0.18
0.35
0.42
6.49

10
4.76
0.63
0.41
0.13
0.36
0.42
6.71

11
5.00
0.66
0.41
0.08
0.38
0.51
7.04

12
5.25
0.70
0.41
0.03
0.40
0.51
7.29

13
5.51
0.74
0.18
0.00
0.41
0.51
7.35

14
5.78
0.78
0.18
0.00
0.43
0.51
7.69

15
6.07
0.83
0.18
0.00
0.46
0.51
8.04

16
6.38
0.88
0.18
0.00
0.48
0.51
8.41

17
6.69
0.93
0.18
0.00
0.50
0.51
8.81

18
7.03
0.98
0.18
0.00
0.53
0.51
9.22

19
7.38
1.04
0.18
0.00
0.55
0.51
9.65

20
7.75
1.09
0.18
0.00
0.58
0.51
10.11

Fixed Cost
Unit
Year--->
O&M Expenses
Rs Lakh
Depreciation
Rs Lakh
Interest on term loan
Rs Lakh
Interest on working Capital
Rs Lakh
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
Per unit Fixed Cost
Rs/kWh
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
Variable COG
Rs/kWh
4.33
O&M expn
Rs/kWh
0.58
Depreciation
Rs/kWh
0.38
Int. on term loan
Rs/kWh
0.31
Int. on working capital
Rs/kWh
0.34
RoE
Rs/kWh
0.46
Total COG
Rs/kWh
6.39
Levellised Tariff
Discount Factor
Variable Cost (FY2012-13)
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

Unit

Year -->

1
1

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

8
0.493

9
0.446

10
0.403

11
0.365

12
0.330

13
0.298

14
0.269

3.07 Rs/Kwh
2.06 Rs/Kwh
5.12 Rs/Kwh

15
0.244

16
0.220

17
0.199

18
0.180

19
0.163

20
0.147

[Typetext]

Page108


Determination of Accelerated Depreciation for Biomass Power Project
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.000%
32.45%
445.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
11.75

2
5.28%
23.50

3
5.28%
23.50

4
5.28%
23.50

5
5.28%
23.50

6
5.28%
23.50

7
5.28%
23.50

8
5.28%
23.50

9
5.28%
23.50

10
5.28%
23.50

11
5.28%
23.50

12
5.28%
23.50

13
5.28%
23.50

14
5.28%
23.50

15
5.28%
23.50

16
5.28%
23.50

17
5.28%
23.50

18
2.88%
12.82

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
178.00

60%
48.00%
12%
213.60

12%
9.60%
2.40%
42.72

2%
1.92%
0.48%
8.54

0%
0.38%
0.10%
1.71

0%
0.08%
0.02%
0.34

0%
0.02%
0.00%
0.07

0%
0.00%
0.00%
0.01

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

166.25
53.94
2.56
2.11

190.10
61.68
6.31
0.98

19.22
6.24
6.31
0.10

-14.95
-4.85
6.31
-0.08

-21.79
-7.07
6.31
-0.11

-23.15
-7.51
6.31
-0.12

-23.43
-7.60
6.31
-0.12

-23.48
-7.62
6.31
-0.12

-23.49
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-12.82
-4.16
6.31
-0.07

0.00
0.00
6.31
0.00

0.00
0.00
6.31
0.00

1.00

0.95

0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

0.31

0.28

0.26

0.23

0.21

0.19

0.17

0.15

Discounting Factor
Levellised benefit

[Typetext]

0.13

(Rs/kWh)

Page109

[Typetext]

Page110

Annexure-3G
Select State

UP

Assumption for Biomass Power Project Parameters

S. No.
1

Assumption Head
Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
MW
Auxillary Consumption during stablisatio%
Auxillary Consumption after stabilisation%
PLF(Stablization for 6 months)
%
PLF(during first year after Stablization) %
PLF(second year onwards)
%
Useful Life
Years

1
10%
10%
60%
70%
80%
20

2 Project Cost
Capital Cost/MW
3 Financial Assumptions
Debt: Equity

Power Plant Cost

Rs Lacs/MW

445.00

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
311.50
133.50

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

311.50
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

133.50
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.445%
20.000%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital

For Fixed Charges

O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
Fuel Related Assumptions
Heat Rate
After Stabilisation period
During Stablization Period

Months
Months

1
15%
2

Months
%

4
12.80%

Kcal/kwh
Kcal/kwh

4000
4000

Biomass
Base Price
GCV - Biomass
Biomass Price Escalation Factor
7 Operation & Maintenance
power plant
Total O & M Expenses Escalation

[Typetext]

Rs/T
Kcal/kg

2355
3300
5.00%
24.00
5.72%

Page111

Determination of Tariff Component: Biomass Power Projects

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.57
5.12

2
1
7.01
0.70
6.31

3
1
7.01
0.70
6.31

4
1
7.01
0.70
6.31

5
1
7.01
0.70
6.31

6
1
7.01
0.70
6.31

7
1
7.01
0.70
6.31

8
1
7.01
0.70
6.31

9
1
7.01
0.70
6.31

10
1
7.01
0.70
6.31

11
1
7.01
0.70
6.31

12
1
7.01
0.70
6.31

13
1
7.01
0.70
6.31

14
1
7.01
0.70
6.31

15
1
7.01
0.70
6.31

16
1
7.01
0.70
6.31

17
1
7.01
0.70
6.31

18
1
7.01
0.70
6.31

19
1
7.01
0.70
6.31

20
1
7.01
0.70
6.31

Unit
Rs Lakh
Rs/kWh

Year--->

1
162.54
3.17

2
210.05
3.33

3
220.55
3.50

4
231.58
3.67

5
243.16
3.86

6
255.32
4.05

7
268.08
4.25

8
281.49
4.46

9
295.56
4.69

10
310.34
4.92

11
325.85
5.17

12
342.15
5.42

13
359.25
5.70

14
377.22
5.98

15
396.08
6.28

16
415.88
6.59

17
436.68
6.92

18
458.51
7.27

19
481.44
7.63

20
505.51
8.01

1
24.00
25.96
36.72
13.83
26.70
127.21
2.48

2
25.37
25.96
33.53
16.94
26.70
128.50
2.04

3
26.82
25.96
30.33
17.64
26.70
127.45
2.02

4
28.36
25.96
27.14
18.37
26.70
126.52
2.01

5
29.98
25.96
23.95
19.14
26.70
125.73
1.99

6
31.70
25.96
20.75
19.95
26.70
125.06
1.98

7
33.51
25.96
17.56
20.81
26.70
124.54
1.97

8
35.43
25.96
14.37
21.72
26.70
124.17
1.97

9
37.45
25.96
11.18
22.68
26.70
123.96
1.97

10
39.59
25.96
7.98
23.69
26.70
123.92
1.96

11
41.86
25.96
4.79
24.87
32.04
129.51
2.05

12
44.25
25.96
1.60
25.99
32.04
129.84
2.06

13
46.78
11.13
0.00
26.88
32.04
116.83
1.85

14
49.46
11.13
0.00
28.20
32.04
120.82
1.92

15
52.29
11.13
0.00
29.58
32.04
125.03
1.98

16
55.28
11.13
0.00
31.03
32.04
129.47
2.05

17
58.44
11.13
0.00
32.55
32.04
134.16
2.13

18
61.78
11.13
0.00
34.16
32.04
139.11
2.21

19
65.32
11.13
0.00
35.84
32.04
144.33
2.29

20
69.06
11.13
0.00
37.61
32.04
149.83
2.38

1
3.17
0.47
0.51
0.72
0.27
0.52
5.65

2
3.33
0.40
0.41
0.53
0.27
0.42
5.37

3
3.50
0.43
0.41
0.48
0.28
0.42
5.52

4
3.67
0.45
0.41
0.43
0.29
0.42
5.68

5
3.86
0.48
0.41
0.38
0.30
0.42
5.85

6
4.05
0.50
0.41
0.33
0.32
0.42
6.03

7
4.25
0.53
0.41
0.28
0.33
0.42
6.23

8
4.46
0.56
0.41
0.23
0.34
0.42
6.43

9
4.69
0.59
0.41
0.18
0.36
0.42
6.65

10
4.92
0.63
0.41
0.13
0.38
0.42
6.89

11
5.17
0.66
0.41
0.08
0.39
0.51
7.22

12
5.42
0.70
0.41
0.03
0.41
0.51
7.48

13
5.70
0.74
0.18
0.00
0.43
0.51
7.55

14
5.98
0.78
0.18
0.00
0.45
0.51
7.90

15
6.28
0.83
0.18
0.00
0.47
0.51
8.26

16
6.59
0.88
0.18
0.00
0.49
0.51
8.65

17
6.92
0.93
0.18
0.00
0.52
0.51
9.05

18
7.27
0.98
0.18
0.00
0.54
0.51
9.48

19
7.63
1.04
0.18
0.00
0.57
0.51
9.92

20
8.01
1.09
0.18
0.00
0.60
0.51
10.39

Fixed Cost
Unit
Year--->
O&M Expenses
Rs Lakh
Depreciation
Rs Lakh
Interest on term loan
Rs Lakh
Interest on working Capital
Rs Lakh
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
Per unit Fixed Cost
Rs/kWh
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
Variable COG
Rs/kWh
4.48
O&M expn
Rs/kWh
0.58
Depreciation
Rs/kWh
0.38
Int. on term loan
Rs/kWh
0.31
Int. on working capital
Rs/kWh
0.35
RoE
Rs/kWh
0.46
Total COG
Rs/kWh
6.54
Levellised Tariff
Discount Factor
Variable Cost (FY2012-13)
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

[Typetext]

Unit

Year -->

1
1

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

8
0.493

9
0.446

10
0.403

11
0.365

12
0.330

13
0.298

14
0.269

3.17 Rs/Kwh
2.07 Rs/Kwh
5.24 Rs/Kwh

15
0.244

16
0.220

17
0.199

18
0.180

19
0.163

20
0.147

Page112


Determination of Accelerated Depreciation for Biomass Power Project
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.000%
32.45%
445.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
11.75

2
5.28%
23.50

3
5.28%
23.50

4
5.28%
23.50

5
5.28%
23.50

6
5.28%
23.50

7
5.28%
23.50

8
5.28%
23.50

9
5.28%
23.50

10
5.28%
23.50

11
5.28%
23.50

12
5.28%
23.50

13
5.28%
23.50

14
5.28%
23.50

15
5.28%
23.50

16
5.28%
23.50

17
5.28%
23.50

18
2.88%
12.82

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
178.00

60%
48.00%
12%
213.60

12%
9.60%
2.40%
42.72

2%
1.92%
0.48%
8.54

0%
0.38%
0.10%
1.71

0%
0.08%
0.02%
0.34

0%
0.02%
0.00%
0.07

0%
0.00%
0.00%
0.01

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

166.25
53.94
2.56
2.11

190.10
61.68
6.31
0.98

19.22
6.24
6.31
0.10

-14.95
-4.85
6.31
-0.08

-21.79
-7.07
6.31
-0.11

-23.15
-7.51
6.31
-0.12

-23.43
-7.60
6.31
-0.12

-23.48
-7.62
6.31
-0.12

-23.49
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-12.82
-4.16
6.31
-0.07

0.00
0.00
6.31
0.00

0.00
0.00
6.31
0.00

1.00

0.95

0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

0.31

0.28

0.26

0.23

0.21

0.19

0.17

0.15

Discounting Factor
Levellised benefit

[Typetext]

0.13

(Rs/kWh)

Page113

[Typetext]

Page114

Annexure-3H
Select State

Others

Assumption for Biomass Power Project Parameters

S. No.
1

Assumption Head
Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
MW
Auxillary Consumption during stablisatio%
Auxillary Consumption after stabilisation%
PLF(Stablization for 6 months)
%
PLF(during first year after Stablization) %
PLF(second year onwards)
%
Useful Life
Years

1
10%
10%
60%
70%
80%
20

2 Project Cost
Capital Cost/MW
3 Financial Assumptions
Debt: Equity

Power Plant Cost

Rs Lacs/MW

445.00

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
311.50
133.50

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

311.50
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

133.50
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.445%
20.000%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital

For Fixed Charges

O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
Fuel Related Assumptions
After Stabilisation period
Heat Rate
During Stablization Period

Months
Months

1
15%
2

Months
%

4
12.80%

Kcal/kwh
Kcal/kwh

4000
4000

Biomass
Base Price
GCV - Biomass
Biomass Price Escalation Factor
7 Operation & Maintenance
power plant
Total O & M Expenses Escalation

[Typetext]

Rs/T
Kcal/kg

2476
3300
5.00%
24.00
5.72%

Page115

Determination of Tariff Component: Biomass Power Projects

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.57
5.12

2
1
7.01
0.70
6.31

3
1
7.01
0.70
6.31

4
1
7.01
0.70
6.31

5
1
7.01
0.70
6.31

6
1
7.01
0.70
6.31

7
1
7.01
0.70
6.31

8
1
7.01
0.70
6.31

9
1
7.01
0.70
6.31

10
1
7.01
0.70
6.31

11
1
7.01
0.70
6.31

12
1
7.01
0.70
6.31

13
1
7.01
0.70
6.31

14
1
7.01
0.70
6.31

15
1
7.01
0.70
6.31

16
1
7.01
0.70
6.31

17
1
7.01
0.70
6.31

18
1
7.01
0.70
6.31

19
1
7.01
0.70
6.31

20
1
7.01
0.70
6.31

Unit
Rs Lakh
Rs/kWh

Year--->

1
170.90
3.33

2
220.85
3.50

3
231.89
3.68

4
243.49
3.86

5
255.66
4.05

6
268.45
4.26

7
281.87
4.47

8
295.96
4.69

9
310.76
4.93

10
326.30
5.17

11
342.61
5.43

12
359.75
5.70

13
377.73
5.99

14
396.62
6.29

15
416.45
6.60

16
437.27
6.93

17
459.14
7.28

18
482.09
7.64

19
506.20
8.03

20
531.51
8.43

1
24.00
25.96
36.72
14.38
26.70
127.76
2.49

2
25.37
25.96
33.53
17.65
26.70
129.21
2.05

3
26.82
25.96
30.33
18.38
26.70
128.19
2.03

4
28.36
25.96
27.14
19.15
26.70
127.30
2.02

5
29.98
25.96
23.95
19.96
26.70
126.54
2.01

6
31.70
25.96
20.75
20.81
26.70
125.92
2.00

7
33.51
25.96
17.56
21.72
26.70
125.44
1.99

8
35.43
25.96
14.37
22.67
26.70
125.12
1.98

9
37.45
25.96
11.18
23.67
26.70
124.96
1.98

10
39.59
25.96
7.98
24.73
26.70
124.97
1.98

11
41.86
25.96
4.79
25.96
32.04
130.61
2.07

12
44.25
25.96
1.60
27.14
32.04
130.99
2.08

13
46.78
11.13
0.00
28.09
32.04
118.04
1.87

14
49.46
11.13
0.00
29.47
32.04
122.09
1.94

15
52.29
11.13
0.00
30.91
32.04
126.36
2.00

16
55.28
11.13
0.00
32.43
32.04
130.87
2.07

17
58.44
11.13
0.00
34.02
32.04
135.63
2.15

18
61.78
11.13
0.00
35.70
32.04
140.65
2.23

19
65.32
11.13
0.00
37.46
32.04
145.95
2.31

20
69.06
11.13
0.00
39.31
32.04
151.53
2.40

1
3.33
0.47
0.51
0.72
0.28
0.52
5.83

2
3.50
0.40
0.41
0.53
0.28
0.42
5.55

3
3.68
0.43
0.41
0.48
0.29
0.42
5.71

4
3.86
0.45
0.41
0.43
0.30
0.42
5.88

5
4.05
0.48
0.41
0.38
0.32
0.42
6.06

6
4.26
0.50
0.41
0.33
0.33
0.42
6.25

7
4.47
0.53
0.41
0.28
0.34
0.42
6.46

8
4.69
0.56
0.41
0.23
0.36
0.42
6.68

9
4.93
0.59
0.41
0.18
0.38
0.42
6.91

10
5.17
0.63
0.41
0.13
0.39
0.42
7.15

11
5.43
0.66
0.41
0.08
0.41
0.51
7.50

12
5.70
0.70
0.41
0.03
0.43
0.51
7.78

13
5.99
0.74
0.18
0.00
0.45
0.51
7.86

14
6.29
0.78
0.18
0.00
0.47
0.51
8.22

15
6.60
0.83
0.18
0.00
0.49
0.51
8.61

16
6.93
0.88
0.18
0.00
0.51
0.51
9.01

17
7.28
0.93
0.18
0.00
0.54
0.51
9.43

18
7.64
0.98
0.18
0.00
0.57
0.51
9.87

19
8.03
1.04
0.18
0.00
0.59
0.51
10.34

20
8.43
1.09
0.18
0.00
0.62
0.51
10.83

Fixed Cost
Unit
Year--->
O&M Expenses
Rs Lakh
Depreciation
Rs Lakh
Interest on term loan
Rs Lakh
Interest on working Capital
Rs Lakh
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
Per unit Fixed Cost
Rs/kWh
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
Variable COG
Rs/kWh
4.71
O&M expn
Rs/kWh
0.58
Depreciation
Rs/kWh
0.38
Int. on term loan
Rs/kWh
0.31
Int. on working capital
Rs/kWh
0.36
RoE
Rs/kWh
0.46
Total COG
Rs/kWh
6.79
Levellised Tariff
Discount Factor
Variable Cost (FY2012-13)
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

[Typetext]

Unit

Year -->

1
1

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

8
0.493

9
0.446

10
0.403

11
0.365

12
0.330

13
0.298

14
0.269

3.33 Rs/Kwh
2.08 Rs/Kwh
5.42 Rs/Kwh

15
0.244

16
0.220

17
0.199

18
0.180

19
0.163

20
0.147

Page116


Determination of Accelerated Depreciation for Biomass Power Project
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.000%
32.45%
445.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
11.75

2
5.28%
23.50

3
5.28%
23.50

4
5.28%
23.50

5
5.28%
23.50

6
5.28%
23.50

7
5.28%
23.50

8
5.28%
23.50

9
5.28%
23.50

10
5.28%
23.50

11
5.28%
23.50

12
5.28%
23.50

13
5.28%
23.50

14
5.28%
23.50

15
5.28%
23.50

16
5.28%
23.50

17
5.28%
23.50

18
2.88%
12.82

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
178.00

60%
48.00%
12%
213.60

12%
9.60%
2.40%
42.72

2%
1.92%
0.48%
8.54

0%
0.38%
0.10%
1.71

0%
0.08%
0.02%
0.34

0%
0.02%
0.00%
0.07

0%
0.00%
0.00%
0.01

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

166.25
53.94
2.56
2.11

190.10
61.68
6.31
0.98

19.22
6.24
6.31
0.10

-14.95
-4.85
6.31
-0.08

-21.79
-7.07
6.31
-0.11

-23.15
-7.51
6.31
-0.12

-23.43
-7.60
6.31
-0.12

-23.48
-7.62
6.31
-0.12

-23.49
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-23.50
-7.62
6.31
-0.12

-12.82
-4.16
6.31
-0.07

0.00
0.00
6.31
0.00

0.00
0.00
6.31
0.00

1.00

0.95

0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

0.31

0.28

0.26

0.23

0.21

0.19

0.17

0.15

Discounting Factor
Levellised benefit

[Typetext]

0.13

(Rs/kWh)

Page117

[Typetext]

Page118

Annexure 4A
Select State

AP

Non Fossil Fuel based co-generation Projects

S. No.
1

Assumption Head
Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
MW
Auxillary Consumption during stablisatio%
Auxillary Consumption after stabilisation%
PLF(Stablization for 6 months)
%
PLF(during first year after Stablization) %
PLF(second year onwards)
%
Useful Life
Years

1
8.50%
8.50%
45%
45%
45%
20

2 Project Cost
Capital Cost/MW

Power Plant Cost

Rs Lacs/MW

420.00

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
294.00
126.00

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

294.00
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

126.00
20.00%
10.00
24.00%

3 Financial Assumptions
Debt: Equity

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.4450%
20%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital
For Fixed Charges
O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
6

Fuel Related Assumptions

Heat Rate

Months
Months

1
15%
2

Months
%

4
12.80%

After Stabilisation period

During Stablization Period

Kcal/kwh
Kcal/kwh

3600
3600

Base Price
GCV - Bagasse
Bagasse Price Escalation Factor

Rs/T
Kcal/kg

1307
2250
5.00%

Rs. Lacs
%

16.00
5.72%

Biomass

7 Operation & Maintenance

power plant (FY 2012-13)
Total O & M Expenses Escalation

[Typetext]

Page119

Determination of Tariff for non-fossil fuel basd co-generation Projects

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Unit
MW
MU
MU
MU

Year--->

Fixed Cost
Unit
Year--->
O&M Expenses
Rs Lakh
Depreciation
Rs Lakh
Interest on term loan
Rs Lakh
Interest on working Capital
Rs Lakh
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
Per unit Fixed Cost
Rs/kWh
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
Variable COG
Rs/kWh
3.23
O&M expn
Rs/kWh
0.66
Depreciation
Rs/kWh
0.61
Int. on term loan
Rs/kWh
0.49
Int. on working capital
Rs/kWh
0.29
RoE
Rs/kWh
0.74
Total COG
Rs/kWh
6.00
Levellised Tariff
Discount Factor
Variable Cost (FY2012-13)
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

[Typetext]

Unit

Year -->

1
1
3.94
0.34
3.61

2
1
3.94
0.34
3.61

3
1
3.94
0.34
3.61

4
1
3.94
0.34
3.61

5
1
3.94
0.34
3.61

6
1
3.94
0.34
3.61

7
1
3.94
0.34
3.61

8
1
3.94
0.34
3.61

9
1
3.94
0.34
3.61

10
1
3.94
0.34
3.61

11
1
3.94
0.34
3.61

12
1
3.94
0.34
3.61

13
1
3.94
0.34
3.61

14
1
3.94
0.34
3.61

15
1
3.94
0.34
3.61

16
1
3.94
0.34
3.61

17
1
3.94
0.34
3.61

18
1
3.94
0.34
3.61

19
1
3.94
0.34
3.61

20
1
3.94
0.34
3.61

1
16.00
24.50
34.66
8.07
25.20
108.42
3.01

2
16.92
24.50
31.64
8.32
25.20
106.58
2.95

3
17.88
24.50
28.63
8.59
25.20
104.80
2.91

4
18.91
24.50
25.61
8.87
25.20
103.09
2.86

5
19.99
24.50
22.60
9.17
25.20
101.46
2.81

6
21.13
24.50
19.59
9.50
25.20
99.91
2.77

7
22.34
24.50
16.57
9.84
25.20
98.45
2.73

8
23.62
24.50
13.56
10.20
25.20
97.08
2.69

9
24.97
24.50
10.55
10.58
25.20
95.80
2.66

10
26.40
24.50
7.53
10.99
25.20
94.62
2.62

11
27.91
24.50
4.52
11.53
30.24
98.70
2.74

12
29.50
24.50
1.51
11.99
30.24
97.74
2.71

13
31.19
10.50
0.00
12.20
30.24
84.13
2.33

14
32.97
10.50
0.00
12.78
30.24
86.49
2.40

15
34.86
10.50
0.00
13.39
30.24
88.98
2.47

16
36.85
10.50
0.00
14.02
30.24
91.62
2.54

17
38.96
10.50
0.00
14.69
30.24
94.40
2.62

18
41.19
10.50
0.00
15.40
30.24
97.33
2.70

19
43.55
10.50
0.00
16.14
30.24
100.43
2.78

20
46.04
10.50
0.00
16.92
30.24
103.70
2.87

1
2.29
0.44
0.68
0.96
0.22
0.70
5.29

2
2.40
0.47
0.68
0.88
0.23
0.70
5.35

3
2.52
0.50
0.68
0.79
0.24
0.70
5.43

4
2.65
0.52
0.68
0.71
0.25
0.70
5.50

5
2.78
0.55
0.68
0.63
0.25
0.70
5.59

6
2.92
0.59
0.68
0.54
0.26
0.70
5.69

7
3.06
0.62
0.68
0.46
0.27
0.70
5.79

8
3.22
0.65
0.68
0.38
0.28
0.70
5.91

9
3.38
0.69
0.68
0.29
0.29
0.70
6.03

10
3.55
0.73
0.68
0.21
0.30
0.70
6.17

11
3.72
0.77
0.68
0.13
0.32
0.84
6.46

12
3.91
0.82
0.68
0.04
0.33
0.84
6.62

13
4.10
0.86
0.29
0.00
0.34
0.84
6.44

14
4.31
0.91
0.29
0.00
0.35
0.84
6.71

15
4.53
0.97
0.29
0.00
0.37
0.84
6.99

16
4.75
1.02
0.29
0.00
0.39
0.84
7.29

17
4.99
1.08
0.29
0.00
0.41
0.84
7.61

18
5.24
1.14
0.29
0.00
0.43
0.84
7.94

19
5.50
1.21
0.29
0.00
0.45
0.84
8.28

20
5.78
1.28
0.29
0.00
0.47
0.84
8.65

1
1

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

8
0.493

9
0.446

10
0.403

11
0.365

12
0.330

2.29 Rs/Kwh
2.77 Rs/Kwh
5.06 Rs/Kwh

13
0.298

14
0.269

15
0.244

16
0.220

17
0.199

18
0.180

19
0.163

20
0.147

Page120


Determination of Accelerated Depreciation for non-fossil fuel based co-generation project
Depreciation amount
90%
Book Depreciation rate
5.28%
Tax Depreciation rate
80%
Income Tax (MAT)
20.0000%
Income Tax (Normal Rates)
32.4450%
Capital Cost
420.0
Years
----------------->
Book Depreciation

Unit
%

1
2.64%

Book Depreciation

Rs Lakh

11.09

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
60%
12%
2%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
40% 48.00% 9.60% 1.92% 0.38% 0.08% 0.02% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
60%
12% 2.40% 0.48% 0.10% 0.02% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
168.00 201.60 40.32
8.06
1.61
0.32
0.06
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

156.91
50.91
1.80
2.82

179.42
58.21
3.61
1.61

1.00

0.95

Discounting Factor
Levellised benefit

[Typetext]

0.21

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%
22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

12.10

18.14 -14.11 -20.56 -21.85 -22.11 -22.16 -22.17 -22.18 -22.18 -22.18 -22.18 -22.18 -22.18 -22.18 -22.18 -12.10
5.89 -4.58 -6.67 -7.09 -7.17 -7.19 -7.19 -7.19 -7.19 -7.19 -7.20 -7.20 -7.20 -7.20 -7.20 -3.92
3.61
3.61
3.61
3.61
3.61
3.61
3.61
3.61
3.61
3.61
3.61
3.61
3.61
3.61
3.61
3.61
0.16 -0.13 -0.18 -0.20 -0.20 -0.20 -0.20 -0.20 -0.20 -0.20 -0.20 -0.20 -0.20 -0.20 -0.20 -0.11
0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

(Rs/kWh)

0.31

0.28

0.26

0.23

0.21

0.19

0.00

0.00

0.00
0.00
3.61
0.00

0.00
0.00
3.61
0.00

0.17

0.15

Page121

[Typetext]

Page122

Annexure 4B
Select State

Harayana

Non Fossil Fuel based co-generation Projects

S. No.
1

Assumption Head
Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
MW
Auxillary Consumption during stablisatio%
Auxillary Consumption after stabilisation%
PLF(Stablization for 6 months)
%
PLF(during first year after Stablization) %
PLF(second year onwards)
%
Useful Life
Years

1
8.50%
8.50%
53%
53%
53%
20

2 Project Cost
Capital Cost/MW

Power Plant Cost

Rs Lacs/MW

420.00

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
294.00
126.00

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

294.00
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

126.00
20.00%
10.00
24.00%

3 Financial Assumptions
Debt: Equity

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.4450%
20%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital
For Fixed Charges
O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
6

Fuel Related Assumptions

Heat Rate

Months
Months

1
15%
2

Months
%

4
12.80%

After Stabilisation period

During Stablization Period

Kcal/kwh
Kcal/kwh

3600
3600

Base Price
GCV - Bagasse
Bagasse Price Escalation Factor

Rs/T
Kcal/kg

1859
2250
5.00%

Rs. Lacs
%

16.00
5.72%

Biomass

7 Operation & Maintenance

power plant (FY 2012-13)
Total O & M Expenses Escalation

[Typetext]

Page123

Determination of Tariff for non-fossil fuel basd co-generation Projects

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Unit
MW
MU
MU
MU

Year--->

Fixed Cost
Unit
Year--->
O&M Expenses
Rs Lakh
Depreciation
Rs Lakh
Interest on term loan
Rs Lakh
Interest on working Capital
Rs Lakh
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
Per unit Fixed Cost
Rs/kWh
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
Variable COG
Rs/kWh
4.59
O&M expn
Rs/kWh
0.56
Depreciation
Rs/kWh
0.51
Int. on term loan
Rs/kWh
0.41
Int. on working capital
Rs/kWh
0.36
RoE
Rs/kWh
0.62
Total COG
Rs/kWh
7.06
Levellised Tariff
Discount Factor
Variable Cost (FY2012-13)
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

[Typetext]

Unit

Year -->

1
1
4.64
0.39
4.25

2
1
4.64
0.39
4.25

3
1
4.64
0.39
4.25

4
1
4.64
0.39
4.25

5
1
4.64
0.39
4.25

6
1
4.64
0.39
4.25

7
1
4.64
0.39
4.25

1
16.00
24.50
34.66
11.71
25.20
112.06
2.64

2
16.92
24.50
31.64
12.14
25.20
110.40
2.60

3
17.88
24.50
28.63
12.60
25.20
108.81
2.56

4
18.91
24.50
25.61
13.09
25.20
107.31
2.53

5
19.99
24.50
22.60
13.60
25.20
105.89
2.49

6
21.13
24.50
19.59
14.14
25.20
104.56
2.46

7
22.34
24.50
16.57
14.72
25.20
103.33
2.43

1
3.25
0.38
0.58
0.82
0.28
0.59
5.89

2
3.41
0.40
0.58
0.74
0.29
0.59
6.01

3
3.58
0.42
0.58
0.67
0.30
0.59
6.15

4
3.76
0.45
0.58
0.60
0.31
0.59
6.29

5
3.95
0.47
0.58
0.53
0.32
0.59
6.44

6
4.15
0.50
0.58
0.46
0.33
0.59
6.61

7
4.36
0.53
0.58
0.39
0.35
0.59
6.79

1
1

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

8
1
4.64
0.39
4.25

9
1
4.64
0.39
4.25

8
9
23.62
24.97
24.50
24.50
13.56
10.55
15.32
15.96
25.20
25.20
102.20 101.18
2.41
2.38
8
4.57
0.56
0.58
0.32
0.36
0.59
6.98
8
0.493

9
4.80
0.59
0.58
0.25
0.38
0.59
7.18
9
0.446

10
1
4.64
0.39
4.25

11
1
4.64
0.39
4.25

12
1
4.64
0.39
4.25

13
1
4.64
0.39
4.25

14
1
4.64
0.39
4.25

15
1
4.64
0.39
4.25

16
1
4.64
0.39
4.25

17
1
4.64
0.39
4.25

18
1
4.64
0.39
4.25

19
1
4.64
0.39
4.25

20
1
4.64
0.39
4.25

10
26.40
24.50
7.53
16.64
25.20
100.27
2.36

11
27.91
24.50
4.52
17.46
30.24
104.63
2.46

12
29.50
24.50
1.51
18.22
30.24
103.96
2.45

13
31.19
10.50
0.00
18.74
30.24
90.67
2.13

14
32.97
10.50
0.00
19.64
30.24
93.36
2.20

15
34.86
10.50
0.00
20.59
30.24
96.19
2.26

16
36.85
10.50
0.00
21.59
30.24
99.18
2.33

17
38.96
10.50
0.00
22.64
30.24
102.34
2.41

18
41.19
10.50
0.00
23.74
30.24
105.67
2.49

19
43.55
10.50
0.00
24.90
30.24
109.19
2.57

20
46.04
10.50
0.00
26.12
30.24
112.89
2.66

10
5.04
0.62
0.58
0.18
0.39
0.59
7.40

11
5.30
0.66
0.58
0.11
0.41
0.71
7.76

12
5.56
0.69
0.58
0.04
0.43
0.71
8.01

13
5.84
0.73
0.25
0.00
0.44
0.71
7.97

14
6.13
0.78
0.25
0.00
0.46
0.71
8.33

15
6.44
0.82
0.25
0.00
0.48
0.71
8.70

16
6.76
0.87
0.25
0.00
0.51
0.71
9.09

17
7.10
0.92
0.25
0.00
0.53
0.71
9.50

18
7.45
0.97
0.25
0.00
0.56
0.71
9.94

19
7.82
1.03
0.25
0.00
0.59
0.71
10.39

20
8.21
1.08
0.25
0.00
0.61
0.71
10.87

10
0.403

11
0.365

12
0.330

3.25 Rs/Kwh
2.48 Rs/Kwh
5.73 Rs/Kwh

13
0.298

14
0.269

15
0.244

16
0.220

17
0.199

18
0.180

19
0.163

20
0.147

Page124


Determination of Accelerated Depreciation for non-fossil fuel based co-generation project
Depreciation amount
90%
Book Depreciation rate
5.28%
Tax Depreciation rate
80%
Income Tax (MAT)
20.0000%
Income Tax (Normal Rates) 32.4450%
Capital Cost
420.0
Years
----------------->
Book Depreciation

Unit
%

1
2.64%

Book Depreciation

Rs Lakh

11.09

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
60% 12%
2%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
40% 48.00% 9.60% 1.92% 0.38% 0.08% 0.02% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
60%
12% 2.40% 0.48% 0.10% 0.02% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
168.00 201.60 40.32
8.06
1.61
0.32
0.06
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

156.91 179.42
50.91
58.21
2.12
4.25
2.40
1.37

Discounting Factor
Levellised benefit

[Typetext]

1.00
0.18

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%
22.18

0.95

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

12.10

18.14 -14.11 -20.56 -21.85 -22.11 -22.16 -22.17 -22.18 -22.18 -22.18 -22.18 -22.18 -22.18 -22.18 -22.18 -12.10
5.89 -4.58 -6.67 -7.09 -7.17 -7.19 -7.19 -7.19 -7.19 -7.19 -7.20 -7.20 -7.20 -7.20 -7.20 -3.92
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
0.14 -0.11 -0.16 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.09
0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

(Rs/kWh)

0.31

0.28

0.26

0.23

0.21

0.19

0.00

0.00

0.00
0.00
4.25
0.00

0.00
0.00
4.25
0.00

0.17

0.15

Page125

[Typetext]

Page126

Annexure 4C
Select State

Maharashtra

Non Fossil Fuel based co-generation Projects

S. No.
1

Assumption Head
Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
MW
Auxillary Consumption during stablisatio%
Auxillary Consumption after stabilisation%
PLF(Stablization for 6 months)
%
PLF(during first year after Stablization) %
PLF(second year onwards)
%
Useful Life
Years

1
8.50%
8.50%
60%
60%
60%
20

2 Project Cost
Capital Cost/MW

Power Plant Cost

Rs Lacs/MW

420.00

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
294.00
126.00

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

294.00
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

126.00
20.00%
10.00
24.00%

3 Financial Assumptions
Debt: Equity

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.4450%
20%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital
For Fixed Charges
O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
6

Fuel Related Assumptions

Heat Rate

Months
Months

1
15%
2

Months
%

4
12.80%

After Stabilisation period

During Stablization Period

Kcal/kwh
Kcal/kwh

3600
3600

Base Price
GCV - Bagasse
Bagasse Price Escalation Factor

Rs/T
Kcal/kg

1832
2250
5.00%

Rs. Lacs
%

16.00
5.72%

Biomass

7 Operation & Maintenance

power plant (FY 2012-13)
Total O & M Expenses Escalation

[Typetext]

Page127


Determination of Tariff for non-fossil fuel basd co-generation Projects
Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Unit
MW
MU
MU
MU

Year--->

Fixed Cost
Unit
Year--->
O&M Expenses
Rs Lakh
Depreciation
Rs Lakh
Interest on term loan
Rs Lakh
Interest on working Capital
Rs Lakh
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
Per unit Fixed Cost
Rs/kWh
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
Variable COG
Rs/kWh
4.52
O&M expn
Rs/kWh
0.50
Depreciation
Rs/kWh
0.45
Int. on term loan
Rs/kWh
0.36
Int. on working capital
Rs/kWh
0.35
RoE
Rs/kWh
0.55
Total COG
Rs/kWh
6.74
Levellised Tariff
Discount Factor
Variable Cost (FY2012-13)
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

[Typetext]

Unit

Year -->

1
1
5.26
0.45
4.81

2
1
5.26
0.45
4.81

3
1
5.26
0.45
4.81

4
1
5.26
0.45
4.81

5
1
5.26
0.45
4.81

6
1
5.26
0.45
4.81

7
1
5.26
0.45
4.81

1
16.00
24.50
34.66
12.75
25.20
113.11
2.35

2
16.92
24.50
31.64
13.24
25.20
111.49
2.32

3
17.88
24.50
28.63
13.75
25.20
109.96
2.29

4
18.91
24.50
25.61
14.29
25.20
108.51
2.26

5
19.99
24.50
22.60
14.87
25.20
107.16
2.23

6
21.13
24.50
19.59
15.47
25.20
105.89
2.20

7
22.34
24.50
16.57
16.11
25.20
104.73
2.18

1
3.20
0.33
0.51
0.72
0.27
0.52
5.56

2
3.36
0.35
0.51
0.66
0.28
0.52
5.68

3
3.53
0.37
0.51
0.60
0.29
0.52
5.82

4
3.71
0.39
0.51
0.53
0.30
0.52
5.96

5
3.89
0.42
0.51
0.47
0.31
0.52
6.12

6
4.09
0.44
0.51
0.41
0.32
0.52
6.29

7
4.29
0.46
0.51
0.34
0.34
0.52
6.47

1
1

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

8
1
5.26
0.45
4.81

9
1
5.26
0.45
4.81

8
9
23.62
24.97
24.50
24.50
13.56
10.55
16.79
17.50
25.20
25.20
103.67 102.72
2.16
2.14
8
4.51
0.49
0.51
0.28
0.35
0.52
6.66
8
0.493

9
4.73
0.52
0.51
0.22
0.36
0.52
6.87
9
0.446

10
1
5.26
0.45
4.81

11
1
5.26
0.45
4.81

12
1
5.26
0.45
4.81

13
1
5.26
0.45
4.81

14
1
5.26
0.45
4.81

15
1
5.26
0.45
4.81

16
1
5.26
0.45
4.81

17
1
5.26
0.45
4.81

18
1
5.26
0.45
4.81

19
1
5.26
0.45
4.81

20
1
5.26
0.45
4.81

10
26.40
24.50
7.53
18.26
25.20
101.89
2.12

11
27.91
24.50
4.52
19.16
30.24
106.33
2.21

12
29.50
24.50
1.51
20.00
30.24
105.75
2.20

13
31.19
10.50
0.00
20.61
30.24
92.54
1.92

14
32.97
10.50
0.00
21.61
30.24
95.32
1.98

15
34.86
10.50
0.00
22.66
30.24
98.26
2.04

16
36.85
10.50
0.00
23.76
30.24
101.35
2.11

17
38.96
10.50
0.00
24.92
30.24
104.62
2.18

18
41.19
10.50
0.00
26.14
30.24
108.07
2.25

19
43.55
10.50
0.00
27.41
30.24
111.70
2.32

20
46.04
10.50
0.00
28.76
30.24
115.53
2.40

10
4.97
0.55
0.51
0.16
0.38
0.52
7.09

11
5.22
0.58
0.51
0.09
0.40
0.63
7.43

12
5.48
0.61
0.51
0.03
0.42
0.63
7.68

13
5.75
0.65
0.22
0.00
0.43
0.63
7.68

14
6.04
0.69
0.22
0.00
0.45
0.63
8.02

15
6.34
0.72
0.22
0.00
0.47
0.63
8.39

16
6.66
0.77
0.22
0.00
0.49
0.63
8.77

17
6.99
0.81
0.22
0.00
0.52
0.63
9.17

18
7.34
0.86
0.22
0.00
0.54
0.63
9.59

19
7.71
0.91
0.22
0.00
0.57
0.63
10.03

20
8.10
0.96
0.22
0.00
0.60
0.63
10.50

10
0.403

11
0.365

12
0.330

3.20 Rs/Kwh
2.22 Rs/Kwh
5.42 Rs/Kwh

Page128

13
0.298

14
0.269

15
0.244

16
0.220

17
0.199

18
0.180

19
0.163

20
0.147

Determination of Accelerated Depreciation for non-fossil fuel based co-generation project

Depreciation amount
90%
Book Depreciation rate
5.28%
Tax Depreciation rate
80%
Income Tax (MAT)
20.0000%
Income Tax (Normal Rates) 32.4450%
Capital Cost
420.0
Years
----------------->
Book Depreciation

Unit
%

1
2.64%

Book Depreciation

Rs Lakh

11.09

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
60% 12%
2%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
40% 48.00% 9.60% 1.92% 0.38% 0.08% 0.02% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
60%
12% 2.40% 0.48% 0.10% 0.02% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
168.00 201.60 40.32
8.06
1.61
0.32
0.06
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

156.91 179.42 18.14 -14.11 -20.56 -21.85 -22.11 -22.16 -22.17 -22.18 -22.18 -22.18 -22.18 -22.18 -22.18 -22.18 -22.18 -12.10
50.91
58.21
5.89 -4.58 -6.67 -7.09 -7.17 -7.19 -7.19 -7.19 -7.19 -7.19 -7.20 -7.20 -7.20 -7.20 -7.20 -3.92
2.40
4.81
4.81
4.81
4.81
4.81
4.81
4.81
4.81
4.81
4.81
4.81
4.81
4.81
4.81
4.81
4.81
4.81
2.12
1.21
0.12 -0.10 -0.14 -0.15 -0.15 -0.15 -0.15 -0.15 -0.15 -0.15 -0.15 -0.15 -0.15 -0.15 -0.15 -0.08

Discounting Factor
Levellised benefit

[Typetext]

1.00
0.16

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%
22.18 22.18 22.18 22.18 22.18 22.18 22.18 22.18 22.18 22.18 22.18 22.18 22.18 22.18 22.18 22.18 12.10

0.95

0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

0.31

(Rs/kWh)

0.28

0.26

0.23

0.21

0.19

0.00

0.00

0.00
0.00
4.81
0.00

0.00
0.00
4.81
0.00

0.17

0.15

Page129

[Typetext]

Page130

Annexure 4D
Select State

Punjab

Non Fossil Fuel based co-generation Projects

S. No.
1

Assumption Head
Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
MW
Auxillary Consumption during stablisatio%
Auxillary Consumption after stabilisation%
PLF(Stablization for 6 months)
%
PLF(during first year after Stablization) %
PLF(second year onwards)
%
Useful Life
Years

1
8.50%
8.50%
53%
53%
53%
20

2 Project Cost
Capital Cost/MW

Power Plant Cost

Rs Lacs/MW

420.00

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
294.00
126.00

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

294.00
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

126.00
20.00%
10.00
24.00%

3 Financial Assumptions
Debt: Equity

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.4450%
20%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital
For Fixed Charges
O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
6

Fuel Related Assumptions

Heat Rate

Months
Months

1
15%
2

Months
%

4
12.80%

After Stabilisation period

During Stablization Period

Kcal/kwh
Kcal/kwh

3600
3600

Base Price
GCV - Bagasse
Bagasse Price Escalation Factor

Rs/T
Kcal/kg

1636
2250
5.00%

Rs. Lacs
%

16.00
5.72%

Biomass

7 Operation & Maintenance

power plant (FY 2012-13)
Total O & M Expenses Escalation

[Typetext]

Page131

Determination of Tariff for non-fossil fuel basd co-generation Projects

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation
Fixed Cost
O&M Expenses
Depreciation
Interest on term loan
Interest on working Capital
Return on Equity
Total Fixed Cost
Per unit Fixed Cost
Levallised tariff corresponding to
Per Unit Cost of Generation
Variable COG
O&M expn
Depreciation
Int. on term loan
Int. on working capital
RoE
Total COG
Levellised Tariff
Discount Factor
Variable Cost (FY2012-13)
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

[Typetext]

Unit
MW
MU
MU
MU

Year--->

Unit
Year--->
Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh
Rs/kWh
Useful life
Unit
Levellised
Rs/kWh
4.04
Rs/kWh
0.56
Rs/kWh
0.51
Rs/kWh
0.41
Rs/kWh
0.33
Rs/kWh
0.62
Rs/kWh
6.48
Unit

Year -->

1
1
4.64
0.39
4.25

2
1
4.64
0.39
4.25

3
1
4.64
0.39
4.25

4
1
4.64
0.39
4.25

5
1
4.64
0.39
4.25

6
1
4.64
0.39
4.25

7
1
4.64
0.39
4.25

8
1
4.64
0.39
4.25

9
1
4.64
0.39
4.25

10
1
4.64
0.39
4.25

11
1
4.64
0.39
4.25

12
1
4.64
0.39
4.25

13
1
4.64
0.39
4.25

14
1
4.64
0.39
4.25

15
1
4.64
0.39
4.25

16
1
4.64
0.39
4.25

17
1
4.64
0.39
4.25

18
1
4.64
0.39
4.25

19
1
4.64
0.39
4.25

20
1
4.64
0.39
4.25

1
16.00
24.50
34.66
10.62
25.20
110.98
2.61

2
16.92
24.50
31.64
11.00
25.20
109.26
2.57

3
17.88
24.50
28.63
11.41
25.20
107.62
2.53

4
18.91
24.50
25.61
11.83
25.20
106.05
2.50

5
19.99
24.50
22.60
12.28
25.20
104.57
2.46

6
21.13
24.50
19.59
12.76
25.20
103.18
2.43

7
22.34
24.50
16.57
13.26
25.20
101.88
2.40

8
23.62
24.50
13.56
13.80
25.20
100.67
2.37

9
24.97
24.50
10.55
14.36
25.20
99.58
2.34

10
26.40
24.50
7.53
14.96
25.20
98.59
2.32

11
27.91
24.50
4.52
15.70
30.24
102.86
2.42

12
29.50
24.50
1.51
16.36
30.24
102.11
2.40

13
31.19
10.50
0.00
16.79
30.24
88.72
2.09

14
32.97
10.50
0.00
17.60
30.24
91.31
2.15

15
34.86
10.50
0.00
18.45
30.24
94.05
2.21

16
36.85
10.50
0.00
19.34
30.24
96.93
2.28

17
38.96
10.50
0.00
20.27
30.24
99.98
2.35

18
41.19
10.50
0.00
21.26
30.24
103.19
2.43

19
43.55
10.50
0.00
22.29
30.24
106.58
2.51

20
46.04
10.50
0.00
23.38
30.24
110.16
2.59

1
2.86
0.38
0.58
0.82
0.25
0.59
5.47

2
3.00
0.40
0.58
0.74
0.26
0.59
5.58

3
3.15
0.42
0.58
0.67
0.27
0.59
5.69

4
3.31
0.45
0.58
0.60
0.28
0.59
5.81

5
3.48
0.47
0.58
0.53
0.29
0.59
5.94

6
3.65
0.50
0.58
0.46
0.30
0.59
6.08

7
3.83
0.53
0.58
0.39
0.31
0.59
6.23

8
4.03
0.56
0.58
0.32
0.32
0.59
6.40

9
4.23
0.59
0.58
0.25
0.34
0.59
6.57

10
4.44
0.62
0.58
0.18
0.35
0.59
6.76

11
4.66
0.66
0.58
0.11
0.37
0.71
7.08

12
4.89
0.69
0.58
0.04
0.39
0.71
7.30

13
5.14
0.73
0.25
0.00
0.40
0.71
7.23

14
5.39
0.78
0.25
0.00
0.41
0.71
7.54

15
5.66
0.82
0.25
0.00
0.43
0.71
7.88

16
5.95
0.87
0.25
0.00
0.46
0.71
8.23

17
6.24
0.92
0.25
0.00
0.48
0.71
8.60

18
6.56
0.97
0.25
0.00
0.50
0.71
8.99

19
6.88
1.03
0.25
0.00
0.52
0.71
9.39

20
7.23
1.08
0.25
0.00
0.55
0.71
9.82

8
0.493

9
0.446

10
0.403

11
0.365

12
0.330

13
0.298

14
0.269

15
0.244

16
0.220

17
0.199

18
0.180

1
1

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

2.86 Rs/Kwh
2.44 Rs/Kwh
5.30 Rs/Kwh

19
0.163

20
0.147

Page132

Determination of Accelerated Depreciation for non-fossil fuel based co-generation project

Depreciation amount
90%
Book Depreciation rate
5.28%
Tax Depreciation rate
80%
Income Tax (MAT)
20.0000%
Income Tax (Normal Rates)
32.4450%
Capital Cost
420.0
Years
----------------->
Book Depreciation

Unit
%

1
2.64%

Book Depreciation

Rs Lakh

11.09

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
60%
12%
2%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
40% 48.00% 9.60% 1.92% 0.38% 0.08% 0.02% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
60%
12% 2.40% 0.48% 0.10% 0.02% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
168.00 201.60 40.32
8.06
1.61
0.32
0.06
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

156.91
50.91
2.12
2.40

179.42
58.21
4.25
1.37

1.00

0.95

Discounting Factor
Levellised benefit

[Typetext]

0.18

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%
22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

12.10

18.14 -14.11 -20.56 -21.85 -22.11 -22.16 -22.17 -22.18 -22.18 -22.18 -22.18 -22.18 -22.18 -22.18 -22.18 -12.10
5.89 -4.58 -6.67 -7.09 -7.17 -7.19 -7.19 -7.19 -7.19 -7.19 -7.20 -7.20 -7.20 -7.20 -7.20 -3.92
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
0.14 -0.11 -0.16 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.09
0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

(Rs/kWh)

0.31

0.28

0.26

0.23

0.21

0.19

0.00

0.00

0.00
0.00
4.25
0.00

0.00
0.00
4.25
0.00

0.17

0.15

Page133

[Typetext]

Page134

Annexure 4E
Select State

TN

Non Fossil Fuel based co-generation Projects

S. No.
1

Assumption Head
Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
MW
Auxillary Consumption during stablisatio%
Auxillary Consumption after stabilisation%
PLF(Stablization for 6 months)
%
PLF(during first year after Stablization) %
PLF(second year onwards)
%
Useful Life
Years

1
8.50%
8.50%
60%
60%
60%
20

2 Project Cost
Capital Cost/MW

Power Plant Cost

Rs Lacs/MW

420.00

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
294.00
126.00

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

294.00
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

126.00
20.00%
10.00
24.00%

3 Financial Assumptions
Debt: Equity

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.4450%
20%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital
For Fixed Charges
O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
6

Fuel Related Assumptions

Heat Rate

Months
Months

1
15%
2

Months
%

4
12.80%

After Stabilisation period

During Stablization Period

Kcal/kwh
Kcal/kwh

3600
3600

Base Price
GCV - Bagasse
Bagasse Price Escalation Factor

Rs/T
Kcal/kg

1408
2250
5.00%

Rs. Lacs
%

16.00
5.72%

Biomass

7 Operation & Maintenance

power plant (FY 2012-13)
Total O & M Expenses Escalation

[Typetext]

Page135


Determination of Tariff for non-fossil fuel basd co-generation Projects
Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Unit
MW
MU
MU
MU

Year--->

Fixed Cost
Unit
Year--->
O&M Expenses
Rs Lakh
Depreciation
Rs Lakh
Interest on term loan
Rs Lakh
Interest on working Capital
Rs Lakh
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
Per unit Fixed Cost
Rs/kWh
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
Variable COG
Rs/kWh
3.47
O&M expn
Rs/kWh
0.50
Depreciation
Rs/kWh
0.45
Int. on term loan
Rs/kWh
0.36
Int. on working capital
Rs/kWh
0.28
RoE
Rs/kWh
0.55
Total COG
Rs/kWh
5.62
Levellised Tariff
Discount Factor
Variable Cost (FY2012-13)
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

[Typetext]

Unit

Year -->

1
1
5.26
0.45
4.81

2
1
5.26
0.45
4.81

3
1
5.26
0.45
4.81

4
1
5.26
0.45
4.81

5
1
5.26
0.45
4.81

6
1
5.26
0.45
4.81

7
1
5.26
0.45
4.81

8
1
5.26
0.45
4.81

9
1
5.26
0.45
4.81

10
1
5.26
0.45
4.81

11
1
5.26
0.45
4.81

12
1
5.26
0.45
4.81

13
1
5.26
0.45
4.81

14
1
5.26
0.45
4.81

15
1
5.26
0.45
4.81

16
1
5.26
0.45
4.81

17
1
5.26
0.45
4.81

18
1
5.26
0.45
4.81

19
1
5.26
0.45
4.81

20
1
5.26
0.45
4.81

1
16.00
24.50
34.66
10.42
25.20
110.77
2.30

2
16.92
24.50
31.64
10.79
25.20
109.05
2.27

3
17.88
24.50
28.63
11.18
25.20
107.39
2.23

4
18.91
24.50
25.61
11.59
25.20
105.81
2.20

5
19.99
24.50
22.60
12.03
25.20
104.32
2.17

6
21.13
24.50
19.59
12.50
25.20
102.92
2.14

7
22.34
24.50
16.57
12.99
25.20
101.60
2.11

8
23.62
24.50
13.56
13.51
25.20
100.39
2.09

9
24.97
24.50
10.55
14.06
25.20
99.27
2.06

10
26.40
24.50
7.53
14.64
25.20
98.27
2.04

11
27.91
24.50
4.52
15.36
30.24
102.53
2.13

12
29.50
24.50
1.51
16.01
30.24
101.76
2.12

13
31.19
10.50
0.00
16.43
30.24
88.35
1.84

14
32.97
10.50
0.00
17.21
30.24
90.93
1.89

15
34.86
10.50
0.00
18.04
30.24
93.64
1.95

16
36.85
10.50
0.00
18.91
30.24
96.51
2.01

17
38.96
10.50
0.00
19.83
30.24
99.53
2.07

18
41.19
10.50
0.00
20.79
30.24
102.72
2.14

19
43.55
10.50
0.00
21.80
30.24
106.09
2.21

20
46.04
10.50
0.00
22.86
30.24
109.64
2.28

1
2.46
0.33
0.51
0.72
0.22
0.52
4.77

2
2.59
0.35
0.51
0.66
0.22
0.52
4.85

3
2.71
0.37
0.51
0.60
0.23
0.52
4.95

4
2.85
0.39
0.51
0.53
0.24
0.52
5.05

5
2.99
0.42
0.51
0.47
0.25
0.52
5.16

6
3.14
0.44
0.51
0.41
0.26
0.52
5.28

7
3.30
0.46
0.51
0.34
0.27
0.52
5.41

8
3.46
0.49
0.51
0.28
0.28
0.52
5.55

9
3.64
0.52
0.51
0.22
0.29
0.52
5.70

10
3.82
0.55
0.51
0.16
0.30
0.52
5.86

11
4.01
0.58
0.51
0.09
0.32
0.63
6.14

12
4.21
0.61
0.51
0.03
0.33
0.63
6.33

13
4.42
0.65
0.22
0.00
0.34
0.63
6.26

14
4.64
0.69
0.22
0.00
0.36
0.63
6.53

15
4.87
0.72
0.22
0.00
0.38
0.63
6.82

16
5.12
0.77
0.22
0.00
0.39
0.63
7.13

17
5.37
0.81
0.22
0.00
0.41
0.63
7.44

18
5.64
0.86
0.22
0.00
0.43
0.63
7.78

19
5.93
0.91
0.22
0.00
0.45
0.63
8.13

20
6.22
0.96
0.22
0.00
0.48
0.63
8.50

1
1

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

8
0.493

9
0.446

10
0.403

11
0.365

12
0.330

2.46 Rs/Kwh
2.15 Rs/Kwh
4.61 Rs/Kwh

13
0.298

14
0.269

15
0.244

16
0.220

17
0.199

18
0.180

19
0.163

20
0.147

Page136

Determination of Accelerated Depreciation for non-fossil fuel based co-generation project

Depreciation amount
90%
Book Depreciation rate
5.28%
Tax Depreciation rate
80%
Income Tax (MAT)
20.0000%
Income Tax (Normal Rates)
32.4450%
Capital Cost
420.0
Unit
%

1
2.64%

Book Depreciation

Rs Lakh

11.09

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
60%
12%
2%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
40% 48.00% 9.60% 1.92% 0.38% 0.08% 0.02% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
60%
12% 2.40% 0.48% 0.10% 0.02% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
168.00 201.60 40.32
8.06
1.61
0.32
0.06
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

156.91
50.91
2.40
2.12

179.42
58.21
4.81
1.21

1.00

0.95

Years
----------------->
Book Depreciation

Discounting Factor
Levellised benefit

[Typetext]

0.16

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%
22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

12.10

18.14 -14.11 -20.56 -21.85 -22.11 -22.16 -22.17 -22.18 -22.18 -22.18 -22.18 -22.18 -22.18 -22.18 -22.18 -12.10
5.89 -4.58 -6.67 -7.09 -7.17 -7.19 -7.19 -7.19 -7.19 -7.19 -7.20 -7.20 -7.20 -7.20 -7.20 -3.92
4.81
4.81
4.81
4.81
4.81
4.81
4.81
4.81
4.81
4.81
4.81
4.81
4.81
4.81
4.81
4.81
0.12 -0.10 -0.14 -0.15 -0.15 -0.15 -0.15 -0.15 -0.15 -0.15 -0.15 -0.15 -0.15 -0.15 -0.15 -0.08
0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

(Rs/kWh)

0.31

0.28

0.26

0.23

0.21

0.19

0.00

0.00

0.00
0.00
4.81
0.00

0.00
0.00
4.81
0.00

0.17

0.15

Page137

[Typetext]

Page138

Annexure 4F
Select State

UP

Non Fossil Fuel based co-generation Projects

S. No.
1

Assumption Head
Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
MW
Auxillary Consumption during stablisatio%
Auxillary Consumption after stabilisation%
PLF(Stablization for 6 months)
%
PLF(during first year after Stablization) %
PLF(second year onwards)
%
Useful Life
Years

1
8.50%
8.50%
45%
45%
45%
20

2 Project Cost
Capital Cost/MW

Power Plant Cost

Rs Lacs/MW

420.00

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
294.00
126.00

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

294.00
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

126.00
20.00%
10.00
24.00%

3 Financial Assumptions
Debt: Equity

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.4450%
20%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital
For Fixed Charges
O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
6

Fuel Related Assumptions

Heat Rate

Months
Months

1
15%
2

Months
%

4
12.80%

After Stabilisation period

During Stablization Period

Kcal/kwh
Kcal/kwh

3600
3600

Base Price
GCV - Bagasse
Bagasse Price Escalation Factor

Rs/T
Kcal/kg

1458
2250
5.00%

Rs. Lacs
%

16.00
5.72%

Biomass

7 Operation & Maintenance

power plant (FY 2012-13)
Total O & M Expenses Escalation

[Typetext]

Page139


Determination of Tariff for non-fossil fuel basd co-generation Projects
Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Unit
MW
MU
MU
MU

Year--->

Fixed Cost
Unit
Year--->
O&M Expenses
Rs Lakh
Depreciation
Rs Lakh
Interest on term loan
Rs Lakh
Interest on working Capital
Rs Lakh
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
Per unit Fixed Cost
Rs/kWh
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
Variable COG
Rs/kWh
3.60
O&M expn
Rs/kWh
0.66
Depreciation
Rs/kWh
0.61
Int. on term loan
Rs/kWh
0.49
Int. on working capital
Rs/kWh
0.31
RoE
Rs/kWh
0.74
Total COG
Rs/kWh
6.39
Levellised Tariff
Discount Factor
Variable Cost (FY2012-13)
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

[Typetext]

Unit

Year -->

1
1
3.94
0.34
3.61

2
1
3.94
0.34
3.61

3
1
3.94
0.34
3.61

4
1
3.94
0.34
3.61

5
1
3.94
0.34
3.61

6
1
3.94
0.34
3.61

7
1
3.94
0.34
3.61

8
1
3.94
0.34
3.61

9
1
3.94
0.34
3.61

10
1
3.94
0.34
3.61

11
1
3.94
0.34
3.61

12
1
3.94
0.34
3.61

13
1
3.94
0.34
3.61

14
1
3.94
0.34
3.61

15
1
3.94
0.34
3.61

16
1
3.94
0.34
3.61

17
1
3.94
0.34
3.61

18
1
3.94
0.34
3.61

19
1
3.94
0.34
3.61

20
1
3.94
0.34
3.61

1
16.00
24.50
34.66
8.69
25.20
109.04
3.02

2
16.92
24.50
31.64
8.97
25.20
107.23
2.97

3
17.88
24.50
28.63
9.27
25.20
105.48
2.92

4
18.91
24.50
25.61
9.59
25.20
103.81
2.88

5
19.99
24.50
22.60
9.93
25.20
102.22
2.83

6
21.13
24.50
19.59
10.29
25.20
100.71
2.79

7
22.34
24.50
16.57
10.67
25.20
99.29
2.75

8
23.62
24.50
13.56
11.08
25.20
97.95
2.72

9
24.97
24.50
10.55
11.50
25.20
96.72
2.68

10
26.40
24.50
7.53
11.96
25.20
95.59
2.65

11
27.91
24.50
4.52
12.55
30.24
99.71
2.76

12
29.50
24.50
1.51
13.05
30.24
98.80
2.74

13
31.19
10.50
0.00
13.32
30.24
85.25
2.36

14
32.97
10.50
0.00
13.95
30.24
87.67
2.43

15
34.86
10.50
0.00
14.62
30.24
90.22
2.50

16
36.85
10.50
0.00
15.32
30.24
92.91
2.58

17
38.96
10.50
0.00
16.05
30.24
95.75
2.65

18
41.19
10.50
0.00
16.83
30.24
98.76
2.74

19
43.55
10.50
0.00
17.64
30.24
101.92
2.83

20
46.04
10.50
0.00
18.49
30.24
105.27
2.92

1
2.55
0.44
0.68
0.96
0.24
0.70
5.57

2
2.68
0.47
0.68
0.88
0.25
0.70
5.65

3
2.81
0.50
0.68
0.79
0.26
0.70
5.74

4
2.95
0.52
0.68
0.71
0.27
0.70
5.83

5
3.10
0.55
0.68
0.63
0.28
0.70
5.93

6
3.25
0.59
0.68
0.54
0.29
0.70
6.05

7
3.42
0.62
0.68
0.46
0.30
0.70
6.17

8
3.59
0.65
0.68
0.38
0.31
0.70
6.30

9
3.77
0.69
0.68
0.29
0.32
0.70
6.45

10
3.96
0.73
0.68
0.21
0.33
0.70
6.61

11
4.15
0.77
0.68
0.13
0.35
0.84
6.92

12
4.36
0.82
0.68
0.04
0.36
0.84
7.10

13
4.58
0.86
0.29
0.00
0.37
0.84
6.94

14
4.81
0.91
0.29
0.00
0.39
0.84
7.24

15
5.05
0.97
0.29
0.00
0.41
0.84
7.55

16
5.30
1.02
0.29
0.00
0.42
0.84
7.88

17
5.57
1.08
0.29
0.00
0.45
0.84
8.22

18
5.84
1.14
0.29
0.00
0.47
0.84
8.58

19
6.14
1.21
0.29
0.00
0.49
0.84
8.96

20
6.44
1.28
0.29
0.00
0.51
0.84
9.36

8
0.493

9
0.446

11
0.365

12
0.330

15
0.244

16
0.220

17
0.199

1
1

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

10
0.403

13
0.298

2.55 Rs/Kwh
2.80 Rs/Kwh
5.35 Rs/Kwh

14
0.269

18
0.180

19
0.163

20
0.147

Page140

Determination of Accelerated Depreciation for non-fossil fuel based co-generation project

Depreciation amount
90%
Book Depreciation rate
5.28%
Tax Depreciation rate
80%
Income Tax (MAT)
20.0000%
Income Tax (Normal Rates)
32.4450%
Capital Cost
420.0
Unit
%

1
2.64%

Book Depreciation

Rs Lakh

11.09

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
60%
12%
2%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
40% 48.00% 9.60% 1.92% 0.38% 0.08% 0.02% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
60%
12% 2.40% 0.48% 0.10% 0.02% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
168.00 201.60 40.32
8.06
1.61
0.32
0.06
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

156.91
50.91
1.80
2.82

179.42
58.21
3.61
1.61

1.00

0.95

Years
----------------->
Book Depreciation

Discounting Factor
Levellised benefit

[Typetext]

0.21

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%
22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

12.10

18.14 -14.11 -20.56 -21.85 -22.11 -22.16 -22.17 -22.18 -22.18 -22.18 -22.18 -22.18 -22.18 -22.18 -22.18 -12.10
5.89 -4.58 -6.67 -7.09 -7.17 -7.19 -7.19 -7.19 -7.19 -7.19 -7.20 -7.20 -7.20 -7.20 -7.20 -3.92
3.61
3.61
3.61
3.61
3.61
3.61
3.61
3.61
3.61
3.61
3.61
3.61
3.61
3.61
3.61
3.61
0.16 -0.13 -0.18 -0.20 -0.20 -0.20 -0.20 -0.20 -0.20 -0.20 -0.20 -0.20 -0.20 -0.20 -0.20 -0.11
0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

(Rs/kWh)

0.31

0.28

0.26

0.23

0.21

0.19

0.00

0.00

0.00
0.00
3.61
0.00

0.00
0.00
3.61
0.00

0.17

0.15

Page141

[Typetext]

Page142

Annexure 4G
Select State

Others

Non Fossil Fuel based co-generation Projects

S. No.
1

Assumption Head
Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
MW
Auxillary Consumption during stablisatio%
Auxillary Consumption after stabilisation%
PLF(Stablization for 6 months)
%
PLF(during first year after Stablization) %
PLF(second year onwards)
%
Useful Life
Years

1
8.50%
8.50%
53%
53%
53%
20

2 Project Cost
Capital Cost/MW

Power Plant Cost

Rs Lacs/MW

420.00

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
294.00
126.00

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

294.00
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

126.00
20.00%
10.00
24.00%

3 Financial Assumptions
Debt: Equity

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.4450%
20%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital
For Fixed Charges
O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
6

Fuel Related Assumptions

Heat Rate

Months
Months

1
15%
2

Months
%

4
12.80%

After Stabilisation period

During Stablization Period

Kcal/kwh
Kcal/kwh

3600
3600

Base Price
GCV - Bagasse
Bagasse Price Escalation Factor

Rs/T
Kcal/kg

1583
2250
5.00%

Rs. Lacs
%

16.00
5.72%

Biomass

7 Operation & Maintenance

power plant (FY 2012-13)
Total O & M Expenses Escalation

[Typetext]

Page143

Determination of Tariff for non-fossil fuel basd co-generation Projects

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Unit
MW
MU
MU
MU

Year--->

Fixed Cost
Unit
Year--->
O&M Expenses
Rs Lakh
Depreciation
Rs Lakh
Interest on term loan
Rs Lakh
Interest on working Capital
Rs Lakh
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
Per unit Fixed Cost
Rs/kWh
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
Variable COG
Rs/kWh
3.91
O&M expn
Rs/kWh
0.56
Depreciation
Rs/kWh
0.51
Int. on term loan
Rs/kWh
0.41
Int. on working capital
Rs/kWh
0.32
RoE
Rs/kWh
0.62
Total COG
Rs/kWh
6.34
Levellised Tariff
Discount Factor
Variable Cost (FY2012-13)
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

Unit

Year -->

1
1
4.64
0.39
4.25

2
1
4.64
0.39
4.25

3
1
4.64
0.39
4.25

4
1
4.64
0.39
4.25

5
1
4.64
0.39
4.25

6
1
4.64
0.39
4.25

7
1
4.64
0.39
4.25

8
1
4.64
0.39
4.25

9
1
4.64
0.39
4.25

10
1
4.64
0.39
4.25

11
1
4.64
0.39
4.25

12
1
4.64
0.39
4.25

13
1
4.64
0.39
4.25

14
1
4.64
0.39
4.25

15
1
4.64
0.39
4.25

16
1
4.64
0.39
4.25

17
1
4.64
0.39
4.25

18
1
4.64
0.39
4.25

19
1
4.64
0.39
4.25

20
1
4.64
0.39
4.25

1
16.00
24.50
34.66
10.37
25.20
110.72
2.61

2
16.92
24.50
31.64
10.73
25.20
108.99
2.57

3
17.88
24.50
28.63
11.12
25.20
107.33
2.53

4
18.91
24.50
25.61
11.53
25.20
105.75
2.49

5
19.99
24.50
22.60
11.97
25.20
104.26
2.45

6
21.13
24.50
19.59
12.43
25.20
102.85
2.42

7
22.34
24.50
16.57
12.92
25.20
101.53
2.39

8
23.62
24.50
13.56
13.44
25.20
100.31
2.36

9
24.97
24.50
10.55
13.98
25.20
99.20
2.34

10
26.40
24.50
7.53
14.56
25.20
98.19
2.31

11
27.91
24.50
4.52
15.28
30.24
102.44
2.41

12
29.50
24.50
1.51
15.92
30.24
101.67
2.39

13
31.19
10.50
0.00
16.33
30.24
88.26
2.08

14
32.97
10.50
0.00
17.11
30.24
90.83
2.14

15
34.86
10.50
0.00
17.94
30.24
93.54
2.20

16
36.85
10.50
0.00
18.80
30.24
96.40
2.27

17
38.96
10.50
0.00
19.71
30.24
99.41
2.34

18
41.19
10.50
0.00
20.67
30.24
102.60
2.42

19
43.55
10.50
0.00
21.67
30.24
105.96
2.49

20
46.04
10.50
0.00
22.73
30.24
109.51
2.58

1
2.77
0.38
0.58
0.82
0.24
0.59
5.37

2
2.91
0.40
0.58
0.74
0.25
0.59
5.47

3
3.05
0.42
0.58
0.67
0.26
0.59
5.58

4
3.20
0.45
0.58
0.60
0.27
0.59
5.69

5
3.36
0.47
0.58
0.53
0.28
0.59
5.82

6
3.53
0.50
0.58
0.46
0.29
0.59
5.95

7
3.71
0.53
0.58
0.39
0.30
0.59
6.10

8
3.89
0.56
0.58
0.32
0.32
0.59
6.26

9
4.09
0.59
0.58
0.25
0.33
0.59
6.42

10
4.29
0.62
0.58
0.18
0.34
0.59
6.61

11
4.51
0.66
0.58
0.11
0.36
0.71
6.92

12
4.73
0.69
0.58
0.04
0.37
0.71
7.13

13
4.97
0.73
0.25
0.00
0.38
0.71
7.05

14
5.22
0.78
0.25
0.00
0.40
0.71
7.36

15
5.48
0.82
0.25
0.00
0.42
0.71
7.68

16
5.75
0.87
0.25
0.00
0.44
0.71
8.02

17
6.04
0.92
0.25
0.00
0.46
0.71
8.38

18
6.34
0.97
0.25
0.00
0.49
0.71
8.76

19
6.66
1.03
0.25
0.00
0.51
0.71
9.16

20
6.99
1.08
0.25
0.00
0.54
0.71
9.57

1
1

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

8
0.493

9
0.446

10
0.403

11
0.365

12
0.330

2.77 Rs/Kwh
2.43 Rs/Kwh
5.20 Rs/Kwh

13
0.298

14
0.269

15
0.244

16
0.220

17
0.199

18
0.180

19
0.163

20
0.147

[Typetext]

Page144


Determination of Accelerated Depreciation for non-fossil fuel based co-generation project
Depreciation amount
90%
Book Depreciation rate
5.28%
Tax Depreciation rate
80%
Income Tax (MAT)
20.0000%
Income Tax (Normal Rates) 32.4450%
Capital Cost
420.0
Years
----------------->
Book Depreciation

Unit
%

1
2.64%

Book Depreciation

Rs Lakh

11.09

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
60%
12%
2%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
40% 48.00% 9.60% 1.92% 0.38% 0.08% 0.02% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
60%
12% 2.40% 0.48% 0.10% 0.02% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
168.00 201.60 40.32
8.06
1.61
0.32
0.06
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

156.91
50.91
2.12
2.40

Discounting Factor
Levellised benefit

[Typetext]

1.00
0.18

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 5.28% 2.88% 0.00% 0.00%
22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

22.18

12.10

179.42 18.14 -14.11 -20.56 -21.85 -22.11 -22.16 -22.17 -22.18 -22.18 -22.18 -22.18 -22.18 -22.18 -22.18 -22.18 -12.10
58.21
5.89 -4.58 -6.67 -7.09 -7.17 -7.19 -7.19 -7.19 -7.19 -7.19 -7.20 -7.20 -7.20 -7.20 -7.20 -3.92
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.25
1.37
0.14 -0.11 -0.16 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 -0.09
0.95

0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

(Rs/kWh)

Page145

0.31

0.28

0.26

0.23

0.21

0.19

0.00

0.00

0.00
0.00
4.25
0.00

0.00
0.00
4.25
0.00

0.17

0.15

Annexure 5A

Assumpion for Solar PV Power Projects Parameters

S. No.
1

Assumption

Sub-Head

Head

Sub-Head (2)

Unit

Asumptions

Power Generation
Capacity
Installed Power Generation Capacity
Capacity Utilization Factor
Auxilary Consumption
Useful Life

MW
%
%
Years

1
19.0%
0.00%
25

Power Plant Cost

Rs Lacs/MW

Tariff Period

Years

Debt

Equity

Total Debt Amount

Total Equity Amout

Rs Lacs
Rs Lacs

700.00
300.00

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

700.00
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity 11th year onwards
Weighted average of ROE

Rs Lacs
% p.a
Year
% p.a

300.00
20.00%
10
24.00%
22.40%

2 Project Cost
Capital Cost/MW

1000

3 Financial Assumptions
25

Debt: Equity
70%
30%

Debt Component

Equity Component

Discount Rate
4

10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate for first 12 years

Depreciation Rate 13th year onwards

%
%

32.445%
20.000%
Yes

Depreciation
5.83%
1.54%

Years for 5.83% rate

12

5 Working Capital
For Fixed Charges
O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Interest On Working Capital

Months

1
15%
2

Months
%

12.80%

6 Operation & Maintenance

power plant (FY 12-13)
Total O & M Expenses Escalation

[Typetext]

Rs. Lacs
%

11.00
5.72%

Page146

[Typetext]

Page147

Determination of Tariff for Solar PV

Units Generation

Unit

Installed Capacity
Gross Generation

MW
MU

Fixed Cost

Unit

O&M Expenses
Depreciation
Interest on term loan
Interest on working Capital
Return on Equity
Total Fixed Cost

Year--->

Year--->

Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

1
1.66

1
1.66

1
1.66

1
1.66

1
1.66

1
1.66

1
1.66

1
1.66

1
1.66

1
1.66

1
1.66

1
1.66

1
1.66

1
1.66

1
1.66

1
1.66

1
1.66

1
1.66

1
1.66

1
1.66

1
1.66

1
1.66

1
1.66

1
1.66

1
1.66

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

11.00
58.33
82.51
4.95
60.00
216.80

11.63
58.33
75.34
4.83
60.00
210.13

12.29
58.33
68.16
4.71
60.00
203.50

13.00
58.33
60.99
4.59
60.00
196.91

13.74
58.33
53.81
4.47
60.00
190.36

14.53
58.33
46.64
4.36
60.00
183.85

15.36
58.33
39.46
4.24
60.00
177.40

16.24
58.33
32.29
4.13
60.00
170.99

17.17
58.33
25.11
4.02
60.00
164.64

18.15
58.33
17.94
3.92
60.00
158.34

19.19
58.33
10.76
4.08
72.00
164.36

20.28
58.33
3.59
3.98
72.00
158.18

21.44
15.38
0.00
3.03
72.00
111.85

22.67
15.38
0.00
3.09
72.00
113.14

23.97
15.38
0.00
3.16
72.00
114.51

25.34
15.38
0.00
3.23
72.00
115.95

26.79
15.38
0.00
3.31
72.00
117.48

28.32
15.38
0.00
3.39
72.00
119.09

29.94
15.38
0.00
3.47
72.00
120.79

31.65
15.38
0.00
3.56
72.00
122.60

33.46
15.38
0.00
3.66
72.00
124.50

35.37
15.38
0.00
3.76
72.00
126.51

37.40
15.38
0.00
3.86
72.00
128.64

39.54
15.38
0.00
3.97
72.00
130.90

41.80
15.38
0.00
4.09
72.00
133.28

Levellised COG
Unit

Levellised

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

O&M expn

Rs/kWh

1.06

0.66

0.70

0.74

0.78

0.83

0.87

0.92

0.98

1.03

1.09

1.15

1.22

1.29

1.36

1.44

1.52

1.61

1.70

1.80

1.90

2.01

2.13

2.25

2.38

2.51

Depreciation

Rs/kWh

2.89

3.50

3.50

3.50

3.50

3.50

3.50

3.50

3.50

3.50

3.50

3.50

3.50

0.92

0.92

0.92

0.92

0.92

0.92

0.92

0.92

0.92

0.92

0.92

0.92

0.92

Int. on term loan

Rs/kWh

2.36

4.96

4.53

4.10

3.66

3.23

2.80

2.37

1.94

1.51

1.08

0.65

0.22

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Int. on working capital

Rs/kWh

0.25

0.30

0.29

0.28

0.28

0.27

0.26

0.25

0.25

0.24

0.24

0.25

0.24

0.18

0.19

0.19

0.19

0.20

0.20

0.21

0.21

0.22

0.23

0.23

0.24

0.25

RoE

Rs/kWh

3.83

3.60

3.60

3.60

3.60

3.60

3.60

3.60

3.60

3.60

3.60

4.33

4.33

4.33

4.33

4.33

4.33

4.33

4.33

4.33

4.33

4.33

4.33

4.33

4.33

4.33

Total COG

Rs/kWh
e e sed

10.39

13.03

12.62

12.23

11.83

11.44

11.05

10.66

10.27

9.89

9.51

9.88

9.50

6.72

6.80

6.88

6.97

7.06

7.16

7.26

7.37

7.48

7.60

7.73

7.86

8.01

0.446
172.95

0.403
172.95

0.365
172.95

0.330
172.95

0.298
172.95

0.269
172.95

0.244
172.95

0.220
172.95

0.199
172.95

0.180
172.95

0.163
172.95

0.147
172.95

0.133
172.95

0.120
172.95

0.109
172.95

0.098
172.95

0.089
172.95

Per Unit Cost of Generation

Discount Factor
Fixed Cost
Levellised Tariff

10.39
10.39

1
172.95

0.904
172.95

0.817
172.95

0.739
172.95

0.668
172.95

0.604
172.95

0.546
172.95

0.493
172.95

Rs/Unit

[Typetext]

Page148


Determination of Accelerated Depreciation Benefit for Solar PV Power Projects
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost
Years
----------------->
Book Depreciation
Book Depreciation
Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.
Net Depreciation Benefit
Tax Benefit
Energy generation
Discounting Factor

90%
5.28%
80%
20.0000%
32.4450%
1000.0
Unit
Rs Lakh

1
2.64%
26.40

2
5.28%
52.80

3
5.28%
52.80

4
5.28%
52.80

5
5.28%
52.80

6
5.28%
52.80

7
5.28%
52.80

8
5.28%
52.80

9
5.28%
52.80

10
5.28%
52.80

11
5.28%
52.80

12
5.28%
52.80

13
5.28%
52.80

14
5.28%
52.80

15
5.28%
52.80

16
5.28%
52.80

17
5.28%
52.80

18
2.88%
28.80

19
0.00%
0.00

20
0.00%
0.00

21
0.00%
0.00

22
0.00%
0.00

23
0.00%
0.00

24
0.00%
0.00

25
0.00%
0.00

%
%
%
Rs Lakh

100%
40%
60%
400.00

60%
48.00%
12%
480.00

12%
9.60%
2.40%
96.00

2%
1.92%
0.48%
19.20

0%
0.38%
0.10%
3.84

0%
0.08%
0.02%
0.77

0%
0.02%
0.00%
0.15

0%
0.00%
0.00%
0.03

0%
0.00%
0.00%
0.01

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Rs Lakh
Rs Lakh
MU

373.60
121.21
0.83
1.00

427.20
138.61
1.66
0.95

43.20
14.02
1.66
0.86

-33.60
-10.90
1.66
0.78

-48.96
-15.89
1.66
0.70

-52.03
-16.88
1.66
0.64

-52.65
-17.08
1.66
0.57

-52.77
-17.12
1.66
0.52

-52.79
-17.13
1.66
0.47

-52.80
-17.13
1.66
0.42

-52.80
-17.13
1.66
0.38

-52.80
-17.13
1.66
0.35

-52.80
-17.13
1.66
0.31

-52.80
-17.13
1.66
0.28

-52.80
-17.13
1.66
0.26

-52.80
-17.13
1.66
0.23

-52.80
-17.13
1.66
0.21

-28.80
-9.34
1.66
0.19

0.00
0.00
1.66
0.17

0.00
0.00
1.66
0.15

0.00
0.00
1.66
0.14

0.00
0.00
1.66
0.13

0.00
0.00
1.66
0.11

0.00
0.00
1.66
0.10

0.00
0.00
1.66
0.09

Levellised benefit

[Typetext]

1.04

Rs/Unit

Page149

[Typetext]

Page150

Annexure-6A

Assumptions for Solar Thermal Power Projects Parameters

S. No.
Assumption Head
1 Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
1
23.0%
10.0%
25

Installed Power Generation Capacity

Capacity Utilization Factor
Auxiliary Consumption Factor
Useful Life

MW
%
%
Years

Power Plant Cost

Rs Lacs/MW

Tariff Period

Years

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
910
390

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

910.00
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity 11th year onwards
Weighted average of ROE
Discount Rate

Rs Lacs
% p.a
Year
% p.a

390.00
20.00%
10
24.00%
22.40%
10.62%

Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate for first 12 years

Depreciation Rate 13th year onwards
Years for 5.83% rate

%
%

2 Project Cost
Capital Cost/MW

1300

3 Sources of Fund
25

Debt: Equity

Debt Component

Equity Component

Financial Assumptions
Fiscal Assumptions
32.445%
20.000%
Yes

Depreciation
5.83%
1.54%
12

5 Working Capital
For Fixed Charges
O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Interest On Working Capital
6 Operation & Maintenance
power plant (FY12-13)
Total O & M Expenses Escalation

[Typetext]

1
15%
2

Months
Months

12.80%

15.00
5.72%

Rs Lacs
%

Page151

[Typetext]

Page152

Determination of Tariff Component - (Solar Thermal) 1

Discount Factor

Units Generation

Unit

Installed Capacity
Net Generation

MW
MU

Fixed Cost

Unit

O&M Expenses
Depreciation
Interest on term loan
Interest on working Capital
Return on Equity
Total Fixed Cost

Year--->

Year--->

Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh
Rs Lakh

0.904

0.817

0.739

0.668

0.604

0.546

0.493

0.446

10

0.403

11

0.365

12

0.330

13

0.298

14

0.269

15

0.244

16

0.220

17

0.199

18

0.180

19

0.163

20

0.147

21

0.133

22

0.120

23

0.109

24

0.098

25

0.089

1
1.81

1
1.81

1
1.81

1
1.81

1
1.81

1
1.81

1
1.81

1
1.81

1
1.81

1
1.81

1
1.81

1
1.81

1
1.81

1
1.81

1
1.81

1
1.81

1
1.81

1
1.81

1
1.81

1
1.81

1
1.81

1
1.81

1
1.81

1
1.81

1
1.81

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

15.00
75.83
107.27
6.48
78.00

15.86
75.83
97.94
6.32
78.00

16.77
75.83
88.61
6.16
78.00

17.72
75.83
79.28
6.01
78.00

18.74
75.83
69.96
5.86
78.00

19.81
75.83
60.63
5.71
78.00

20.94
75.83
51.30
5.57
78.00

22.14
75.83
41.97
5.43
78.00

23.41
75.83
32.65
5.29
78.00

24.75
75.83
23.32
5.16
78.00

26.16
75.83
13.99
5.37
93.60

27.66
75.83
4.66
5.24
93.60

29.24
20.00
0.00
4.01
93.60

30.91
20.00
0.00
4.09
93.60

32.68
20.00
0.00
4.19
93.60

34.55
20.00
0.00
4.28
93.60

36.53
20.00
0.00
4.39
93.60

38.62
20.00
0.00
4.50
93.60

40.82
20.00
0.00
4.61
93.60

43.16
20.00
0.00
4.73
93.60

45.63
20.00
0.00
4.86
93.60

48.24
20.00
0.00
5.00
93.60

51.00
20.00
0.00
5.14
93.60

53.91
20.00
0.00
5.30
93.60

57.00
20.00
0.00
5.46
93.60

282.58

273.95

265.37

256.85

248.39

239.98

231.64

223.37

215.18

207.05

214.95

207.00

146.85

148.61

150.47

152.43

154.51

156.71

159.04

161.49

164.09

166.84

169.74

172.81

176.06

Levellised COG

Unit

Levellised

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

Rs/kWh

1.32

0.83

0.87

0.92

0.98

1.03

1.09

1.15

1.22

1.29

1.36

1.44

1.53

1.61

1.70

1.80

1.91

2.01

2.13

2.25

2.38

2.52

2.66

2.81

2.97

3.14

Depreciation

Rs/kWh

3.45

4.18

4.18

4.18

4.18

4.18

4.18

4.18

4.18

4.18

4.18

4.18

4.18

1.10

1.10

1.10

1.10

1.10

1.10

1.10

1.10

1.10

1.10

1.10

1.10

1.10

Int. on term loan

Rs/kWh

2.82

5.92

5.40

4.89

4.37

3.86

3.34

2.83

2.31

1.80

1.29

0.77

0.26

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Int. on working capital

Rs/kWh

0.31

0.36

0.35

0.34

0.33

0.32

0.31

0.31

0.30

0.29

0.28

0.30

0.29

0.22

0.23

0.23

0.24

0.24

0.25

0.25

0.26

0.27

0.28

0.28

0.29

0.30

RoE
Total COG

Rs/kWh
Rs/kWh

4.57

4.30

4.30

4.30

4.30

4.30

4.30

4.30

4.30

4.30

4.30

5.16

5.16

5.16

5.16

5.16

5.16

5.16

5.16

5.16

5.16

5.16

5.16

5.16

5.16

5.16

12.46

15.58

15.11

14.63

14.16

13.70

13.23

12.77

12.32

11.87

11.42

11.85

11.42

8.10

8.20

8.30

8.41

8.52

8.64

8.77

8.91

9.05

9.20

9.36

9.53

9.71

Per Unit Cost of Generation

O&M expn

Levellised Tariff

12.46

[Typetext]

Rs/Unit

Page153


Determination of Accelerated Depreciation Benefit for Solar Thermal Power Projects
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.000%
32.445%
1300.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
34.32

2
5.28%
68.64

3
5.28%
68.64

4
5.28%
68.64

5
5.28%
68.64

6
5.28%
68.64

7
5.28%
68.64

8
5.28%
68.64

9
5.28%
68.64

10
5.28%
68.64

11
5.28%
68.64

12
5.28%
68.64

13
5.28%
68.64

14
5.28%
68.64

15
5.28%
68.64

16
5.28%
68.64

17
5.28%
68.64

18
2.88%
37.44

19
0.00%
0.00

20
0.00%
0.00

21
0.00%
0.00

22
0.00%
0.00

23
0.00%
0.00

24
0.00%
0.00

25
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
520.00

60%
48.00%
12%
624.00

12%
9.60%
2.40%
124.80

2%
1.92%
0.48%
24.96

0%
0.38%
0.10%
4.99

0%
0.08%
0.02%
1.00

0%
0.02%
0.00%
0.20

0%
0.00%
0.00%
0.04

0%
0.00%
0.00%
0.01

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Rs Lakh
Rs Lakh
MU

485.68
157.58
0.91
1.00

555.36
180.19
1.81
0.95

56.16
18.22
1.81
0.86

-43.68
-14.17
1.81
0.78

-63.65
-20.65
1.81
0.70

-67.64
-21.95
1.81
0.64

-68.44
-22.21
1.81
0.57

-68.60
-22.26
1.81
0.52

-68.63
-22.27
1.81
0.47

-68.64
-22.27
1.81
0.42

-68.64
-22.27
1.81
0.38

-68.64
-22.27
1.81
0.35

-68.64
-22.27
1.81
0.31

-68.64
-22.27
1.81
0.28

-68.64
-22.27
1.81
0.26

-68.64
-22.27
1.81
0.23

-68.64
-22.27
1.81
0.21

-37.44
-12.15
1.81
0.19

0.00
0.00
1.81
0.17

0.00
0.00
1.81
0.15

0.00
0.00
1.81
0.14

0.00
0.00
1.81
0.13

0.00
0.00
1.81
0.11

0.00
0.00
1.81
0.10

0.00
0.00
1.81
0.09

Net Depreciation Benefit

Tax Benefit
Energy generation
Discounting Factor
Levellised benefit

1.24

[Typetext]

Rs/Unit

Page154

[Typetext]

Page155

Annexure-7A
Select State

AP

Assumption for Biomass Gasifier Power Project Parameters

S. No.
1

Assumption Head
Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
Auxillary Consumption during stablisation
Auxillary Consumption after stabilisation
PLF(Stablization for 6 months)
PLF(during first year after Stablization)
PLF(second year onwards)
Useful Life

MW
%
%
%
%
%
Years

1
10%
10%
85%
85%
85%
20

Power Plant Cost

Rs Lacs/MW

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
280.00
120.00

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

280.00
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

120.00
20.00%
10.00
24.00%

2 Project Cost
Capital Cost/MW

400.00

3 Financial Assumptions
Debt: Equity

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.445%
20.0%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital

For Fixed Charges

O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
Fuel Related Assumptions

Months
Months

1
15%
2

Months
%

4
12.80%

Specific Fuel Consumption

kg/kWh

1.25

Base Price

Rs/T

2315

GCV - Biomass
Biomass Price Escalation Factor

Kcal/kg

Biomass

7 Operation & Maintenance

power plant
Total O & M Expenses Escalation

[Typetext]

3300
5.00%
40.00
5.72%

Page156

Determination of Tariff Component: Biomass Gasifier Power Projects

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Unit
MW
MU
MU
MU

Year--->

1
1
7.45
0.74
6.70

Fixed Cost
Unit
Year--->
1
O&M Expenses
Rs Lakh
40.00
Depreciation
Rs Lakh
23.33
Interest on term loan
Rs Lakh
33.01
Interest on working Capital
Rs Lakh
22.63
Return on Equity
Rs Lakh
24.00
Total Fixed Cost
Rs Lakh
142.97
2 13
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
1
Variable COG
Rs/kWh
3.22
4.54
O&M expn
Rs/kWh
0.89
0.60
Depreciation
Rs/kWh
0.31
0.35
Int. on term loan
Rs/kWh
0.49
0.25
Int. on working capital
Rs/kWh
0.46
0.34
RoE
Rs/kWh
0.38
0.36
Total COG
Rs/kWh
6.83
5.35
Levellised Tariff
Discount Factor
Variable Cost
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

[Typetext]

Unit

Year -->

1
1

2
1
7.45
0.74
6.70

3
1
7.45
0.74
6.70

4
1
7.45
0.74
6.70

5
1
7.45
0.74
6.70

6
1
7.45
0.74
6.70

7
1
7.45
0.74
6.70

8
1
7.45
0.74
6.70

9
1
7.45
0.74
6.70

10
1
7.45
0.74
6.70

11
1
7.45
0.74
6.70

12
1
7.45
0.74
6.70

13
1
7.45
0.74
6.70

14
1
7.45
0.74
6.70

15
1
7.45
0.74
6.70

16
1
7.45
0.74
6.70

17
1
7.45
0.74
6.70

18
1
7.45
0.74
6.70

19
1
7.45
0.74
6.70

20
1
7.45
0.74
6.70

2
42.29
23.33
30.14
23.63
24.00
143.38
2 14

3
44.71
23.33
27.27
24.68
24.00
143.98
2 15

4
47.26
23.33
24.40
25.79
24.00
144.78
2 16

5
49.97
23.33
21.53
26.95
24.00
145.78
2 18

6
52.83
23.33
18.66
28.18
24.00
146.99
2 19

7
55.85
23.33
15.79
29.47
24.00
148.44
2 22

8
59.04
23.33
12.92
30.84
24.00
150.13
2 24

9
62.42
23.33
10.05
32.27
24.00
152.07
2 27

10
65.99
23.33
7.18
33.79
24.00
154.28
2 30

11
69.76
23.33
4.31
35.48
28.80
161.69
2 41

12
73.75
23.33
1.44
37.16
28.80
164.48
2 45

13
77.97
10.00
0.00
38.66
28.80
155.44
2 32

14
82.43
10.00
0.00
40.58
28.80
161.82
2 41

15
87.15
10.00
0.00
42.60
28.80
168.55
2 52

16
92.13
10.00
0.00
44.72
28.80
175.66
2 62

17
97.40
10.00
0.00
46.95
28.80
183.16
2 73

18
102.97
10.00
0.00
49.29
28.80
191.07
2 85

19
108.87
10.00
0.00
51.76
28.80
199.42
2 98

20
115.09
10.00
0.00
54.34
28.80
208.23
3 11

2
3.38
0.63
0.35
0.45
0.35
0.36
5.52

3
3.54
0.67
0.35
0.41
0.37
0.36
5.69

4
3.72
0.71
0.35
0.36
0.38
0.36
5.88

5
3.91
0.75
0.35
0.32
0.40
0.36
6.08

6
4.10
0.79
0.35
0.28
0.42
0.36
6.30

7
4.31
0.83
0.35
0.24
0.44
0.36
6.52

8
4.52
0.88
0.35
0.19
0.46
0.36
6.76

9
4.75
0.93
0.35
0.15
0.48
0.36
7.02

10
4.99
0.98
0.35
0.11
0.50
0.36
7.29

11
5.24
1.04
0.35
0.06
0.53
0.43
7.65

12
5.50
1.10
0.35
0.02
0.55
0.43
7.95

13
5.77
1.16
0.15
0.00
0.58
0.43
8.09

14
6.06
1.23
0.15
0.00
0.61
0.43
8.48

15
6.37
1.30
0.15
0.00
0.64
0.43
8.88

16
6.68
1.37
0.15
0.00
0.67
0.43
9.31

17
7.02
1.45
0.15
0.00
0.70
0.43
9.75

18
7.37
1.54
0.15
0.00
0.74
0.43
10.22

19
7.74
1.62
0.15
0.00
0.77
0.43
10.71

20
8.12
1.72
0.15
0.00
0.81
0.43
11.23

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

8
0.493

9
0.446

10
0.403

11
0.365

12
0.330

3.22 Rs/Kwh
2.29 Rs/Kwh
5.50 Rs/Kwh

13
0.298

14
0.269

15
0.244

16
0.220

17
0.199

18
0.180

19
0.163

20
0.147

Page157


Determination of Accelerated Depreciation for Biomass Gasifier Power Project
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.000%
32.45%
400.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
10.56

2
5.28%
21.12

3
5.28%
21.12

4
5.28%
21.12

5
5.28%
21.12

6
5.28%
21.12

7
5.28%
21.12

8
5.28%
21.12

9
5.28%
21.12

10
5.28%
21.12

11
5.28%
21.12

12
5.28%
21.12

13
5.28%
21.12

14
5.28%
21.12

15
5.28%
21.12

16
5.28%
21.12

17
5.28%
21.12

18
2.88%
11.52

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
160.00

60%
48.00%
12%
192.00

12%
9.60%
2.40%
38.40

2%
1.92%
0.48%
7.68

0%
0.38%
0.10%
1.54

0%
0.08%
0.02%
0.31

0%
0.02%
0.00%
0.06

0%
0.00%
0.00%
0.01

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

149.44
48.49
3.35
1.45

170.88
55.44
6.70
0.83

17.28
5.61
6.70
0.08

-13.44
-4.36
6.70
-0.07

-19.58
-6.35
6.70
-0.09

-20.81
-6.75
6.70
-0.10

-21.06
-6.83
6.70
-0.10

-21.11
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-11.52
-3.74
6.70
-0.06

0.00
0.00
6.70
0.00

0.00
0.00
6.70
0.00

1.00

0.95

0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

0.31

0.28

0.26

0.23

0.21

0.19

0.17

0.15

Discounting Factor
Levellised benefit

[Typetext]

0.11

(Rs/kWh)

Page158

[Typetext]

Page159


Annexure-7B
Select State

Harayana

Assumption for Biomass Gasifier Power Project Parameters

S. No.
1

Assumption Head
Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
Auxillary Consumption during stablisation
Auxillary Consumption after stabilisation
PLF(Stablization for 6 months)
PLF(during first year after Stablization)
PLF(second year onwards)
Useful Life

MW
%
%
%
%
%
Years

1
10%
10%
85%
85%
85%
20

Power Plant Cost

Rs Lacs/MW

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
280.00
120.00

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

280.00
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

120.00
20.00%
10.00
24.00%

2 Project Cost
Capital Cost/MW

400.00

3 Financial Assumptions
Debt: Equity

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.445%
20.0%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital

For Fixed Charges

O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
Fuel Related Assumptions

Months
Months

1
15%
2

Months
%

4
12.80%

Specific Fuel Consumption

kg/kWh

1.25

Base Price

Rs/T

2635

GCV - Biomass
Biomass Price Escalation Factor

Kcal/kg

Biomass

7 Operation & Maintenance

power plant
Total O & M Expenses Escalation

[Typetext]

3300
5.00%
40.00
5.72%

Page160

Determination of Tariff Component: Biomass Gasifier Power Projects

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Unit
MW
MU
MU
MU

Year--->

1
1
7.45
0.74
6.70

Fixed Cost
Unit
Year--->
1
O&M Expenses
Rs Lakh
40.00
Depreciation
Rs Lakh
23.33
Interest on term loan
Rs Lakh
33.01
Interest on working Capital
Rs Lakh
25.23
Return on Equity
Rs Lakh
24.00
Total Fixed Cost
Rs Lakh
145.57
2 17
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
1
Variable COG
Rs/kWh
5.16
3.66
O&M expn
Rs/kWh
0.60
0.89
Depreciation
Rs/kWh
0.35
0.31
Int. on term loan
Rs/kWh
0.25
0.49
Int. on working capital
Rs/kWh
0.38
0.52
RoE
Rs/kWh
0.36
0.38
Total COG
Rs/kWh
7.51
5.83
Levellised Tariff
Discount Factor
Variable Cost
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

[Typetext]

Unit

Year -->

1
1

2
1
7.45
0.74
6.70

3
1
7.45
0.74
6.70

4
1
7.45
0.74
6.70

5
1
7.45
0.74
6.70

6
1
7.45
0.74
6.70

7
1
7.45
0.74
6.70

8
1
7.45
0.74
6.70

9
1
7.45
0.74
6.70

10
1
7.45
0.74
6.70

11
1
7.45
0.74
6.70

12
1
7.45
0.74
6.70

13
1
7.45
0.74
6.70

14
1
7.45
0.74
6.70

15
1
7.45
0.74
6.70

16
1
7.45
0.74
6.70

17
1
7.45
0.74
6.70

18
1
7.45
0.74
6.70

19
1
7.45
0.74
6.70

20
1
7.45
0.74
6.70

2
42.29
23.33
30.14
26.35
24.00
146.11
2 18

3
44.71
23.33
27.27
27.54
24.00
146.85
2 19

4
47.26
23.33
24.40
28.79
24.00
147.78
2 21

5
49.97
23.33
21.53
30.11
24.00
148.93
2 22

6
52.83
23.33
18.66
31.49
24.00
150.31
2 24

7
55.85
23.33
15.79
32.95
24.00
151.92
2 27

8
59.04
23.33
12.92
34.49
24.00
153.78
2 29

9
62.42
23.33
10.05
36.11
24.00
155.91
2 33

10
65.99
23.33
7.18
37.81
24.00
158.31
2 36

11
69.76
23.33
4.31
39.71
28.80
165.92
2 48

12
73.75
23.33
1.44
41.60
28.80
168.92
2 52

13
77.97
10.00
0.00
43.33
28.80
160.10
2 39

14
82.43
10.00
0.00
45.48
28.80
166.72
2 49

15
87.15
10.00
0.00
47.74
28.80
173.69
2 59

16
92.13
10.00
0.00
50.12
28.80
181.06
2 70

17
97.40
10.00
0.00
52.62
28.80
188.82
2 82

18
102.97
10.00
0.00
55.25
28.80
197.02
2 94

19
108.87
10.00
0.00
58.01
28.80
205.67
3 07

20
115.09
10.00
0.00
60.90
28.80
214.80
3 21

2
3.84
0.63
0.35
0.45
0.39
0.36
6.02

3
4.03
0.67
0.35
0.41
0.41
0.36
6.23

4
4.24
0.71
0.35
0.36
0.43
0.36
6.44

5
4.45
0.75
0.35
0.32
0.45
0.36
6.67

6
4.67
0.79
0.35
0.28
0.47
0.36
6.91

7
4.90
0.83
0.35
0.24
0.49
0.36
7.17

8
5.15
0.88
0.35
0.19
0.51
0.36
7.44

9
5.41
0.93
0.35
0.15
0.54
0.36
7.73

10
5.68
0.98
0.35
0.11
0.56
0.36
8.04

11
5.96
1.04
0.35
0.06
0.59
0.43
8.44

12
6.26
1.10
0.35
0.02
0.62
0.43
8.78

13
6.57
1.16
0.15
0.00
0.65
0.43
8.96

14
6.90
1.23
0.15
0.00
0.68
0.43
9.39

15
7.25
1.30
0.15
0.00
0.71
0.43
9.84

16
7.61
1.37
0.15
0.00
0.75
0.43
10.31

17
7.99
1.45
0.15
0.00
0.79
0.43
10.81

18
8.39
1.54
0.15
0.00
0.82
0.43
11.33

19
8.81
1.62
0.15
0.00
0.87
0.43
11.88

20
9.25
1.72
0.15
0.00
0.91
0.43
12.45

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

8
0.493

9
0.446

10
0.403

11
0.365

12
0.330

13
0.298

3.66 Rs/Kwh
2.34 Rs/Kwh
6.00 Rs/Kwh

14
0.269

15
0.244

16
0.220

17
0.199

18
0.180

19
0.163

20
0.147

Page161


Determination of Accelerated Depreciation for Biomass Gasifier Power Project
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.000%
32.45%
400.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
10.56

2
5.28%
21.12

3
5.28%
21.12

4
5.28%
21.12

5
5.28%
21.12

6
5.28%
21.12

7
5.28%
21.12

8
5.28%
21.12

9
5.28%
21.12

10
5.28%
21.12

11
5.28%
21.12

12
5.28%
21.12

13
5.28%
21.12

14
5.28%
21.12

15
5.28%
21.12

16
5.28%
21.12

17
5.28%
21.12

18
2.88%
11.52

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
160.00

60%
48.00%
12%
192.00

12%
9.60%
2.40%
38.40

2%
1.92%
0.48%
7.68

0%
0.38%
0.10%
1.54

0%
0.08%
0.02%
0.31

0%
0.02%
0.00%
0.06

0%
0.00%
0.00%
0.01

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

149.44
48.49
3.35
1.45

170.88
55.44
6.70
0.83

17.28
5.61
6.70
0.08

-13.44
-4.36
6.70
-0.07

-19.58
-6.35
6.70
-0.09

-20.81
-6.75
6.70
-0.10

-21.06
-6.83
6.70
-0.10

-21.11
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-11.52
-3.74
6.70
-0.06

0.00
0.00
6.70
0.00

0.00
0.00
6.70
0.00

1.00

0.95

0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

0.31

0.28

0.26

0.23

0.21

0.19

0.17

0.15

Discounting Factor
Levellised benefit

[Typetext]

0.11

(Rs/kWh)

Page162

[Typetext]

Page163

Annexure-7C
Select State

Maharashtra

Assumption for Biomass Gasifier Power Project Parameters

S. No.
1

Assumption Head
Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
Auxillary Consumption during stablisation
Auxillary Consumption after stabilisation
PLF(Stablization for 6 months)
PLF(during first year after Stablization)
PLF(second year onwards)
Useful Life

MW
%
%
%
%
%
Years

1
10%
10%
85%
85%
85%
20

Power Plant Cost

Rs Lacs/MW

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
280.00
120.00

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

280.00
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

120.00
20.00%
10.00
24.00%

2 Project Cost
Capital Cost/MW

400.00

3 Financial Assumptions
Debt: Equity

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.445%
20.0%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital

For Fixed Charges

O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
Fuel Related Assumptions

Months
Months

1
15%
2

Months
%

4
12.80%

Specific Fuel Consumption

kg/kWh

1.25

Base Price

Rs/T

2695

GCV - Biomass
Biomass Price Escalation Factor

Kcal/kg

Biomass

7 Operation & Maintenance

power plant
Total O & M Expenses Escalation

[Typetext]

3300
5.00%
40.00
5.72%

Page164

Determination of Tariff Component: Biomass Gasifier Power Projects

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Unit
MW
MU
MU
MU

Year--->

Fixed Cost
Unit
Year--->
O&M Expenses
Rs Lakh
Depreciation
Rs Lakh
Interest on term loan
Rs Lakh
Interest on working Capital
Rs Lakh
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
Variable COG
Rs/kWh
5.28
O&M expn
Rs/kWh
0.89
Depreciation
Rs/kWh
0.31
Int. on term loan
Rs/kWh
0.25
Int. on working capital
Rs/kWh
0.53
RoE
Rs/kWh
0.38
Total COG
Rs/kWh
7.63
Levellised Tariff
Discount Factor
Variable Cost
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

[Typetext]

Unit

Year -->

1
1
7.45
0.74
6.70

2
1
7.45
0.74
6.70

3
1
7.45
0.74
6.70

4
1
7.45
0.74
6.70

5
1
7.45
0.74
6.70

6
1
7.45
0.74
6.70

7
1
7.45
0.74
6.70

8
1
7.45
0.74
6.70

9
1
7.45
0.74
6.70

10
1
7.45
0.74
6.70

11
1
7.45
0.74
6.70

12
1
7.45
0.74
6.70

13
1
7.45
0.74
6.70

14
1
7.45
0.74
6.70

15
1
7.45
0.74
6.70

16
1
7.45
0.74
6.70

17
1
7.45
0.74
6.70

18
1
7.45
0.74
6.70

19
1
7.45
0.74
6.70

20
1
7.45
0.74
6.70

1
40.00
23.33
33.01
25.72
24.00
146.05
2 18

2
42.29
23.33
30.14
26.87
24.00
146.62
2 19

3
44.71
23.33
27.27
28.08
24.00
147.38
2 20

4
47.26
23.33
24.40
29.36
24.00
148.35
2 21

5
49.97
23.33
21.53
30.70
24.00
149.53
2 23

6
52.83
23.33
18.66
32.12
24.00
150.93
2 25

7
55.85
23.33
15.79
33.61
24.00
152.57
2 28

8
59.04
23.33
12.92
35.18
24.00
154.47
2 31

9
62.42
23.33
10.05
36.83
24.00
156.63
2 34

10
65.99
23.33
7.18
38.57
24.00
159.07
2 37

11
69.76
23.33
4.31
40.51
28.80
166.71
2 49

12
73.75
23.33
1.44
42.43
28.80
169.76
2 53

13
77.97
10.00
0.00
44.20
28.80
160.98
2 40

14
82.43
10.00
0.00
46.40
28.80
167.63
2 50

15
87.15
10.00
0.00
48.71
28.80
174.66
2 61

16
92.13
10.00
0.00
51.13
28.80
182.07
2 72

17
97.40
10.00
0.00
53.68
28.80
189.89
2 83

18
102.97
10.00
0.00
56.36
28.80
198.14
2 96

19
108.87
10.00
0.00
59.18
28.80
206.84
3 09

20
115.09
10.00
0.00
62.13
28.80
216.03
3 22

1
3.74
0.60
0.35
0.49
0.38
0.36
5.92

2
3.93
0.63
0.35
0.45
0.40
0.36
6.12

3
4.13
0.67
0.35
0.41
0.42
0.36
6.33

4
4.33
0.71
0.35
0.36
0.44
0.36
6.55

5
4.55
0.75
0.35
0.32
0.46
0.36
6.78

6
4.78
0.79
0.35
0.28
0.48
0.36
7.03

7
5.02
0.83
0.35
0.24
0.50
0.36
7.29

8
5.27
0.88
0.35
0.19
0.52
0.36
7.57

9
5.53
0.93
0.35
0.15
0.55
0.36
7.87

10
5.81
0.98
0.35
0.11
0.58
0.36
8.18

11
6.10
1.04
0.35
0.06
0.60
0.43
8.58

12
6.40
1.10
0.35
0.02
0.63
0.43
8.94

13
6.72
1.16
0.15
0.00
0.66
0.43
9.12

14
7.06
1.23
0.15
0.00
0.69
0.43
9.56

15
7.41
1.30
0.15
0.00
0.73
0.43
10.02

16
7.78
1.37
0.15
0.00
0.76
0.43
10.50

17
8.17
1.45
0.15
0.00
0.80
0.43
11.00

18
8.58
1.54
0.15
0.00
0.84
0.43
11.54

19
9.01
1.62
0.15
0.00
0.88
0.43
12.09

20
9.46
1.72
0.15
0.00
0.93
0.43
12.68

1
1

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

8
0.493

9
0.446

10
0.403

11
0.365

12
0.330

13
0.298

3.74 Rs/Kwh
2.35 Rs/Kwh
6.10 Rs/Kwh

14
0.269

15
0.244

16
0.220

17
0.199

18
0.180

19
0.163

20
0.147

Page165


Determination of Accelerated Depreciation for Biomass Gasifier Power Project
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.000%
32.45%
400.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
10.56

2
5.28%
21.12

3
5.28%
21.12

4
5.28%
21.12

5
5.28%
21.12

6
5.28%
21.12

7
5.28%
21.12

8
5.28%
21.12

9
5.28%
21.12

10
5.28%
21.12

11
5.28%
21.12

12
5.28%
21.12

13
5.28%
21.12

14
5.28%
21.12

15
5.28%
21.12

16
5.28%
21.12

17
5.28%
21.12

18
2.88%
11.52

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
160.00

60%
48.00%
12%
192.00

12%
9.60%
2.40%
38.40

2%
1.92%
0.48%
7.68

0%
0.38%
0.10%
1.54

0%
0.08%
0.02%
0.31

0%
0.02%
0.00%
0.06

0%
0.00%
0.00%
0.01

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

149.44
48.49
3.35
1.45

170.88
55.44
6.70
0.83

17.28
5.61
6.70
0.08

-13.44
-4.36
6.70
-0.07

-19.58
-6.35
6.70
-0.09

-20.81
-6.75
6.70
-0.10

-21.06
-6.83
6.70
-0.10

-21.11
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-11.52
-3.74
6.70
-0.06

0.00
0.00
6.70
0.00

0.00
0.00
6.70
0.00

1.00

0.95

0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

0.31

0.28

0.26

0.23

0.21

0.19

0.17

0.15

Discounting Factor
Levellised benefit

0.11

(Rs/kWh)

[Typetext]

Page166

[Typetext]

Page167

Annexure-7D
Select State

Punjab

Assumption for Biomass Gasifier Power Project Parameters

S. No.
1

Assumption Head
Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
Auxillary Consumption during stablisation
Auxillary Consumption after stabilisation
PLF(Stablization for 6 months)
PLF(during first year after Stablization)
PLF(second year onwards)
Useful Life

MW
%
%
%
%
%
Years

1
10%
10%
85%
85%
85%
20

Power Plant Cost

Rs Lacs/MW

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
280.00
120.00

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

280.00
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

120.00
20.00%
10.00
24.00%

2 Project Cost
Capital Cost/MW

400.00

3 Financial Assumptions
Debt: Equity

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.445%
20.0%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital

For Fixed Charges

O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
Fuel Related Assumptions

Months
Months

1
15%
2

Months
%

4
12.80%

Specific Fuel Consumption

kg/kWh

1.25

Base Price

Rs/T

2756

GCV - Biomass
Biomass Price Escalation Factor

Kcal/kg

Biomass

7 Operation & Maintenance

power plant
Total O & M Expenses Escalation

[Typetext]

3300
5.00%
40.00
5.72%

Page168

Determination of Tariff Component: Biomass Gasifier Power Projects

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Unit
MW
MU
MU
MU

Year--->

Fixed Cost
Unit
Year--->
O&M Expenses
Rs Lakh
Depreciation
Rs Lakh
Interest on term loan
Rs Lakh
Interest on working Capital
Rs Lakh
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
Variable COG
Rs/kWh
5.40
O&M expn
Rs/kWh
0.89
Depreciation
Rs/kWh
0.31
Int. on term loan
Rs/kWh
0.25
Int. on working capital
Rs/kWh
0.54
RoE
Rs/kWh
0.38
Total COG
Rs/kWh
7.76
Levellised Tariff
Discount Factor
Variable Cost
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

[Typetext]

Unit

Year -->

1
1
7.45
0.74
6.70

2
1
7.45
0.74
6.70

3
1
7.45
0.74
6.70

4
1
7.45
0.74
6.70

5
1
7.45
0.74
6.70

6
1
7.45
0.74
6.70

7
1
7.45
0.74
6.70

8
1
7.45
0.74
6.70

9
1
7.45
0.74
6.70

10
1
7.45
0.74
6.70

11
1
7.45
0.74
6.70

12
1
7.45
0.74
6.70

13
1
7.45
0.74
6.70

14
1
7.45
0.74
6.70

15
1
7.45
0.74
6.70

16
1
7.45
0.74
6.70

17
1
7.45
0.74
6.70

18
1
7.45
0.74
6.70

19
1
7.45
0.74
6.70

20
1
7.45
0.74
6.70

1
40.00
23.33
33.01
26.21
24.00
146.55
2 19

2
42.29
23.33
30.14
27.39
24.00
147.14
2 20

3
44.71
23.33
27.27
28.62
24.00
147.93
2 21

4
47.26
23.33
24.40
29.93
24.00
148.92
2 22

5
49.97
23.33
21.53
31.30
24.00
150.13
2 24

6
52.83
23.33
18.66
32.75
24.00
151.56
2 26

7
55.85
23.33
15.79
34.27
24.00
153.24
2 29

8
59.04
23.33
12.92
35.87
24.00
155.16
2 32

9
62.42
23.33
10.05
37.56
24.00
157.36
2 35

10
65.99
23.33
7.18
39.34
24.00
159.84
2 39

11
69.76
23.33
4.31
41.31
28.80
167.51
2 50

12
73.75
23.33
1.44
43.28
28.80
170.60
2 55

13
77.97
10.00
0.00
45.09
28.80
161.87
2 42

14
82.43
10.00
0.00
47.33
28.80
168.57
2 52

15
87.15
10.00
0.00
49.69
28.80
175.64
2 62

16
92.13
10.00
0.00
52.16
28.80
183.10
2 73

17
97.40
10.00
0.00
54.76
28.80
190.97
2 85

18
102.97
10.00
0.00
57.50
28.80
199.27
2 97

19
108.87
10.00
0.00
60.37
28.80
208.03
3 10

20
115.09
10.00
0.00
63.39
28.80
217.28
3 24

1
3.83
0.60
0.35
0.49
0.39
0.36
6.01

2
4.02
0.63
0.35
0.45
0.41
0.36
6.21

3
4.22
0.67
0.35
0.41
0.43
0.36
6.43

4
4.43
0.71
0.35
0.36
0.45
0.36
6.65

5
4.65
0.75
0.35
0.32
0.47
0.36
6.89

6
4.89
0.79
0.35
0.28
0.49
0.36
7.15

7
5.13
0.83
0.35
0.24
0.51
0.36
7.42

8
5.39
0.88
0.35
0.19
0.54
0.36
7.70

9
5.66
0.93
0.35
0.15
0.56
0.36
8.00

10
5.94
0.98
0.35
0.11
0.59
0.36
8.32

11
6.24
1.04
0.35
0.06
0.62
0.43
8.73

12
6.55
1.10
0.35
0.02
0.65
0.43
9.09

13
6.87
1.16
0.15
0.00
0.67
0.43
9.29

14
7.22
1.23
0.15
0.00
0.71
0.43
9.73

15
7.58
1.30
0.15
0.00
0.74
0.43
10.20

16
7.96
1.37
0.15
0.00
0.78
0.43
10.69

17
8.36
1.45
0.15
0.00
0.82
0.43
11.21

18
8.77
1.54
0.15
0.00
0.86
0.43
11.75

19
9.21
1.62
0.15
0.00
0.90
0.43
12.32

20
9.67
1.72
0.15
0.00
0.95
0.43
12.91

1
1

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

8
0.493

9
0.446

10
0.403

11
0.365

12
0.330

13
0.298

3.83 Rs/Kwh
2.36 Rs/Kwh
6.19 Rs/Kwh

14
0.269

15
0.244

16
0.220

17
0.199

18
0.180

19
0.163

20
0.147

Page169


Determination of Accelerated Depreciation for Biomass Gasifier Power Project
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.000%
32.45%
400.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
10.56

2
5.28%
21.12

3
5.28%
21.12

4
5.28%
21.12

5
5.28%
21.12

6
5.28%
21.12

7
5.28%
21.12

8
5.28%
21.12

9
5.28%
21.12

10
5.28%
21.12

11
5.28%
21.12

12
5.28%
21.12

13
5.28%
21.12

14
5.28%
21.12

15
5.28%
21.12

16
5.28%
21.12

17
5.28%
21.12

18
2.88%
11.52

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
160.00

60%
48.00%
12%
192.00

12%
9.60%
2.40%
38.40

2%
1.92%
0.48%
7.68

0%
0.38%
0.10%
1.54

0%
0.08%
0.02%
0.31

0%
0.02%
0.00%
0.06

0%
0.00%
0.00%
0.01

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

149.44
48.49
3.35
1.45

170.88
55.44
6.70
0.83

17.28
5.61
6.70
0.08

-13.44
-4.36
6.70
-0.07

-19.58
-6.35
6.70
-0.09

-20.81
-6.75
6.70
-0.10

-21.06
-6.83
6.70
-0.10

-21.11
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-11.52
-3.74
6.70
-0.06

0.00
0.00
6.70
0.00

0.00
0.00
6.70
0.00

1.00

0.95

0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

0.31

0.28

0.26

0.23

0.21

0.19

0.17

0.15

Discounting Factor
Levellised benefit

0.11

(Rs/kWh)

[Typetext]

Page170

[Typetext]

Page171

Annexure-7E
Select State

Rajasthan

Assumption for Biomass Gasifier Power Project Parameters

S. No.
1

Assumption Head
Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
Auxillary Consumption during stablisation
Auxillary Consumption after stabilisation
PLF(Stablization for 6 months)
PLF(during first year after Stablization)
PLF(second year onwards)
Useful Life

MW
%
%
%
%
%
Years

1
10%
10%
85%
85%
85%
20

Power Plant Cost

Rs Lacs/MW

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
280.00
120.00

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

280.00
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

120.00
20.00%
10.00
24.00%

2 Project Cost
Capital Cost/MW

400.00

3 Financial Assumptions
Debt: Equity

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.445%
20.0%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital

For Fixed Charges

O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
Fuel Related Assumptions

Months
Months

1
15%
2

Months
%

4
12.80%

Specific Fuel Consumption

kg/kWh

1.25

Base Price

Rs/T

2300

GCV - Biomass
Biomass Price Escalation Factor

Kcal/kg

Biomass

7 Operation & Maintenance

power plant
Total O & M Expenses Escalation

[Typetext]

3300
5.00%
40.00
5.72%

Page172

Determination of Tariff Component: Biomass Gasifier Power Projects

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Unit
MW
MU
MU
MU

Year--->

Fixed Cost
Unit
Year--->
O&M Expenses
Rs Lakh
Depreciation
Rs Lakh
Interest on term loan
Rs Lakh
Interest on working Capital
Rs Lakh
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
Variable COG
Rs/kWh
4.51
O&M expn
Rs/kWh
0.89
Depreciation
Rs/kWh
0.31
Int. on term loan
Rs/kWh
0.25
Int. on working capital
Rs/kWh
0.46
RoE
Rs/kWh
0.38
Total COG
Rs/kWh
6.79
Levellised Tariff
Discount Factor
Variable Cost
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

[Typetext]

Unit

Year -->

1
1
7.45
0.74
6.70

2
1
7.45
0.74
6.70

3
1
7.45
0.74
6.70

4
1
7.45
0.74
6.70

5
1
7.45
0.74
6.70

6
1
7.45
0.74
6.70

7
1
7.45
0.74
6.70

8
1
7.45
0.74
6.70

9
1
7.45
0.74
6.70

10
1
7.45
0.74
6.70

11
1
7.45
0.74
6.70

12
1
7.45
0.74
6.70

13
1
7.45
0.74
6.70

14
1
7.45
0.74
6.70

15
1
7.45
0.74
6.70

16
1
7.45
0.74
6.70

17
1
7.45
0.74
6.70

18
1
7.45
0.74
6.70

19
1
7.45
0.74
6.70

20
1
7.45
0.74
6.70

1
40.00
23.33
33.01
22.51
24.00
142.85
2 13

2
42.29
23.33
30.14
23.50
24.00
143.26
2 14

3
44.71
23.33
27.27
24.54
24.00
143.85
2 15

4
47.26
23.33
24.40
25.64
24.00
144.64
2 16

5
49.97
23.33
21.53
26.80
24.00
145.63
2 17

6
52.83
23.33
18.66
28.02
24.00
146.84
2 19

7
55.85
23.33
15.79
29.31
24.00
148.28
2 21

8
59.04
23.33
12.92
30.67
24.00
149.96
2 24

9
62.42
23.33
10.05
32.09
24.00
151.89
2 27

10
65.99
23.33
7.18
33.60
24.00
154.09
2 30

11
69.76
23.33
4.31
35.28
28.80
161.49
2 41

12
73.75
23.33
1.44
36.95
28.80
164.27
2 45

13
77.97
10.00
0.00
38.45
28.80
155.22
2 32

14
82.43
10.00
0.00
40.36
28.80
161.59
2 41

15
87.15
10.00
0.00
42.36
28.80
168.31
2 51

16
92.13
10.00
0.00
44.47
28.80
175.40
2 62

17
97.40
10.00
0.00
46.69
28.80
182.89
2 73

18
102.97
10.00
0.00
49.02
28.80
190.79
2 85

19
108.87
10.00
0.00
51.46
28.80
199.13
2 97

20
115.09
10.00
0.00
54.03
28.80
207.93
3 10

1
3.19
0.60
0.35
0.49
0.34
0.36
5.33

2
3.35
0.63
0.35
0.45
0.35
0.36
5.49

3
3.52
0.67
0.35
0.41
0.37
0.36
5.67

4
3.70
0.71
0.35
0.36
0.38
0.36
5.86

5
3.88
0.75
0.35
0.32
0.40
0.36
6.06

6
4.08
0.79
0.35
0.28
0.42
0.36
6.27

7
4.28
0.83
0.35
0.24
0.44
0.36
6.49

8
4.49
0.88
0.35
0.19
0.46
0.36
6.73

9
4.72
0.93
0.35
0.15
0.48
0.36
6.99

10
4.96
0.98
0.35
0.11
0.50
0.36
7.26

11
5.20
1.04
0.35
0.06
0.53
0.43
7.61

12
5.46
1.10
0.35
0.02
0.55
0.43
7.91

13
5.74
1.16
0.15
0.00
0.57
0.43
8.05

14
6.02
1.23
0.15
0.00
0.60
0.43
8.43

15
6.32
1.30
0.15
0.00
0.63
0.43
8.84

16
6.64
1.37
0.15
0.00
0.66
0.43
9.26

17
6.97
1.45
0.15
0.00
0.70
0.43
9.70

18
7.32
1.54
0.15
0.00
0.73
0.43
10.17

19
7.69
1.62
0.15
0.00
0.77
0.43
10.66

20
8.07
1.72
0.15
0.00
0.81
0.43
11.17

1
1

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

8
0.493

9
0.446

10
0.403

11
0.365

12
0.330

13
0.298

3.19 Rs/Kwh
2.29 Rs/Kwh
5.48 Rs/Kwh

14
0.269

15
0.244

16
0.220

17
0.199

18
0.180

19
0.163

20
0.147

Page173


Determination of Accelerated Depreciation for Biomass Gasifier Power Project
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.000%
32.45%
400.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
10.56

2
5.28%
21.12

3
5.28%
21.12

4
5.28%
21.12

5
5.28%
21.12

6
5.28%
21.12

7
5.28%
21.12

8
5.28%
21.12

9
5.28%
21.12

10
5.28%
21.12

11
5.28%
21.12

12
5.28%
21.12

13
5.28%
21.12

14
5.28%
21.12

15
5.28%
21.12

16
5.28%
21.12

17
5.28%
21.12

18
2.88%
11.52

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
160.00

60%
48.00%
12%
192.00

12%
9.60%
2.40%
38.40

2%
1.92%
0.48%
7.68

0%
0.38%
0.10%
1.54

0%
0.08%
0.02%
0.31

0%
0.02%
0.00%
0.06

0%
0.00%
0.00%
0.01

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

149.44
48.49
3.35
1.45

170.88
55.44
6.70
0.83

17.28
5.61
6.70
0.08

-13.44
-4.36
6.70
-0.07

-19.58
-6.35
6.70
-0.09

-20.81
-6.75
6.70
-0.10

-21.06
-6.83
6.70
-0.10

-21.11
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-11.52
-3.74
6.70
-0.06

0.00
0.00
6.70
0.00

0.00
0.00
6.70
0.00

1.00

0.95

0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

0.31

0.28

0.26

0.23

0.21

0.19

0.17

0.15

Discounting Factor
Levellised benefit

0.11

(Rs/kWh)

[Typetext]

Page174

[Typetext]

Page175

Annexure-7F
Select State

TN

Assumption for Biomass Gasifier Power Project Parameters

S. No.
1

Assumption Head
Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
Auxillary Consumption during stablisation
Auxillary Consumption after stabilisation
PLF(Stablization for 6 months)
PLF(during first year after Stablization)
PLF(second year onwards)
Useful Life

MW
%
%
%
%
%
Years

1
10%
10%
85%
85%
85%
20

Power Plant Cost

Rs Lacs/MW

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
280.00
120.00

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

280.00
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

120.00
20.00%
10.00
24.00%

2 Project Cost
Capital Cost/MW

400.00

3 Financial Assumptions
Debt: Equity

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.445%
20.0%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital

For Fixed Charges

O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
Fuel Related Assumptions

Months
Months

1
15%
2

Months
%

4
12.80%

Specific Fuel Consumption

kg/kWh

1.25

Base Price

Rs/T

2277

GCV - Biomass
Biomass Price Escalation Factor

Kcal/kg

Biomass

7 Operation & Maintenance

power plant
Total O & M Expenses Escalation

[Typetext]

3300
5.00%
40.00
5.72%

Page176

Determination of Tariff Component: Biomass Gasifier Power Projects

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Unit
MW
MU
MU
MU

Year--->

Fixed Cost
Unit
Year--->
O&M Expenses
Rs Lakh
Depreciation
Rs Lakh
Interest on term loan
Rs Lakh
Interest on working Capital
Rs Lakh
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
Variable COG
Rs/kWh
4.46
O&M expn
Rs/kWh
0.89
Depreciation
Rs/kWh
0.31
Int. on term loan
Rs/kWh
0.25
Int. on working capital
Rs/kWh
0.46
RoE
Rs/kWh
0.38
Total COG
Rs/kWh
6.74
Levellised Tariff
Discount Factor
Variable Cost
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

[Typetext]

Unit

Year -->

1
1
7.45
0.74
6.70

2
1
7.45
0.74
6.70

3
1
7.45
0.74
6.70

4
1
7.45
0.74
6.70

5
1
7.45
0.74
6.70

6
1
7.45
0.74
6.70

7
1
7.45
0.74
6.70

8
1
7.45
0.74
6.70

9
1
7.45
0.74
6.70

10
1
7.45
0.74
6.70

11
1
7.45
0.74
6.70

12
1
7.45
0.74
6.70

13
1
7.45
0.74
6.70

14
1
7.45
0.74
6.70

15
1
7.45
0.74
6.70

16
1
7.45
0.74
6.70

17
1
7.45
0.74
6.70

18
1
7.45
0.74
6.70

19
1
7.45
0.74
6.70

20
1
7.45
0.74
6.70

1
40.00
23.33
33.01
22.32
24.00
142.66
2 13

2
42.29
23.33
30.14
23.30
24.00
143.06
2 13

3
44.71
23.33
27.27
24.34
24.00
143.64
2 14

4
47.26
23.33
24.40
25.43
24.00
144.42
2 16

5
49.97
23.33
21.53
26.58
24.00
145.40
2 17

6
52.83
23.33
18.66
27.79
24.00
146.60
2 19

7
55.85
23.33
15.79
29.06
24.00
148.03
2 21

8
59.04
23.33
12.92
30.40
24.00
149.69
2 23

9
62.42
23.33
10.05
31.82
24.00
151.62
2 26

10
65.99
23.33
7.18
33.31
24.00
153.81
2 30

11
69.76
23.33
4.31
34.98
28.80
161.18
2 41

12
73.75
23.33
1.44
36.63
28.80
163.95
2 45

13
77.97
10.00
0.00
38.11
28.80
154.88
2 31

14
82.43
10.00
0.00
40.00
28.80
161.24
2 41

15
87.15
10.00
0.00
41.99
28.80
167.94
2 51

16
92.13
10.00
0.00
44.08
28.80
175.02
2 61

17
97.40
10.00
0.00
46.28
28.80
182.48
2 72

18
102.97
10.00
0.00
48.59
28.80
190.36
2 84

19
108.87
10.00
0.00
51.01
28.80
198.68
2 96

20
115.09
10.00
0.00
53.56
28.80
207.45
3 10

1
3.16
0.60
0.35
0.49
0.33
0.36
5.29

2
3.32
0.63
0.35
0.45
0.35
0.36
5.46

3
3.49
0.67
0.35
0.41
0.36
0.36
5.63

4
3.66
0.71
0.35
0.36
0.38
0.36
5.82

5
3.84
0.75
0.35
0.32
0.40
0.36
6.01

6
4.04
0.79
0.35
0.28
0.41
0.36
6.22

7
4.24
0.83
0.35
0.24
0.43
0.36
6.45

8
4.45
0.88
0.35
0.19
0.45
0.36
6.68

9
4.67
0.93
0.35
0.15
0.47
0.36
6.93

10
4.91
0.98
0.35
0.11
0.50
0.36
7.20

11
5.15
1.04
0.35
0.06
0.52
0.43
7.56

12
5.41
1.10
0.35
0.02
0.55
0.43
7.86

13
5.68
1.16
0.15
0.00
0.57
0.43
7.99

14
5.96
1.23
0.15
0.00
0.60
0.43
8.37

15
6.26
1.30
0.15
0.00
0.63
0.43
8.77

16
6.57
1.37
0.15
0.00
0.66
0.43
9.19

17
6.90
1.45
0.15
0.00
0.69
0.43
9.63

18
7.25
1.54
0.15
0.00
0.73
0.43
10.09

19
7.61
1.62
0.15
0.00
0.76
0.43
10.58

20
7.99
1.72
0.15
0.00
0.80
0.43
11.09

1
1

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

8
0.493

9
0.446

10
0.403

11
0.365

12
0.330

13
0.298

3.16 Rs/Kwh
2.28 Rs/Kwh
5.44 Rs/Kwh

14
0.269

15
0.244

16
0.220

17
0.199

18
0.180

19
0.163

20
0.147

Page177


Determination of Accelerated Depreciation for Biomass Gasifier Power Project
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.000%
32.45%
400.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
10.56

2
5.28%
21.12

3
5.28%
21.12

4
5.28%
21.12

5
5.28%
21.12

6
5.28%
21.12

7
5.28%
21.12

8
5.28%
21.12

9
5.28%
21.12

10
5.28%
21.12

11
5.28%
21.12

12
5.28%
21.12

13
5.28%
21.12

14
5.28%
21.12

15
5.28%
21.12

16
5.28%
21.12

17
5.28%
21.12

18
2.88%
11.52

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
160.00

60%
48.00%
12%
192.00

12%
9.60%
2.40%
38.40

2%
1.92%
0.48%
7.68

0%
0.38%
0.10%
1.54

0%
0.08%
0.02%
0.31

0%
0.02%
0.00%
0.06

0%
0.00%
0.00%
0.01

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

149.44
48.49
3.35
1.45

170.88
55.44
6.70
0.83

17.28
5.61
6.70
0.08

-13.44
-4.36
6.70
-0.07

-19.58
-6.35
6.70
-0.09

-20.81
-6.75
6.70
-0.10

-21.06
-6.83
6.70
-0.10

-21.11
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-11.52
-3.74
6.70
-0.06

0.00
0.00
6.70
0.00

0.00
0.00
6.70
0.00

1.00

0.95

0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

0.31

0.28

0.26

0.23

0.21

0.19

0.17

0.15

Discounting Factor
Levellised benefit

0.11

(Rs/kWh)

[Typetext]

Page178

[Typetext]

Page179

Annexure-7G
Select State

UP

Assumption for Biomass Gasifier Power Project Parameters

S. No.
1

Assumption Head
Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
Auxillary Consumption during stablisation
Auxillary Consumption after stabilisation
PLF(Stablization for 6 months)
PLF(during first year after Stablization)
PLF(second year onwards)
Useful Life

MW
%
%
%
%
%
Years

1
10%
10%
85%
85%
85%
20

Power Plant Cost

Rs Lacs/MW

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
280.00
120.00

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

280.00
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

120.00
20.00%
10.00
24.00%

2 Project Cost
Capital Cost/MW

400.00

3 Financial Assumptions
Debt: Equity

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.445%
20.0%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital

For Fixed Charges

O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
Fuel Related Assumptions

Months
Months

1
15%
2

Months
%

4
12.80%

Specific Fuel Consumption

kg/kWh

1.25

Base Price

Rs/T

2355

GCV - Biomass
Biomass Price Escalation Factor

Kcal/kg

Biomass

7 Operation & Maintenance

power plant
Total O & M Expenses Escalation

[Typetext]

3300
5.00%
40.00
5.72%

Page180

Determination of Tariff Component: Biomass Gasifier Power Projects

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Unit
MW
MU
MU
MU

Year--->

1
1
7.45
0.74
6.70

Fixed Cost
Unit
Year--->
1
O&M Expenses
Rs Lakh
40.00
Depreciation
Rs Lakh
23.33
Interest on term loan
Rs Lakh
33.01
Interest on working Capital
Rs Lakh
22.96
Return on Equity
Rs Lakh
24.00
Total Fixed Cost
Rs Lakh
143.29
2 14
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
1
Variable COG
Rs/kWh
3.27
4.62
O&M expn
Rs/kWh
0.60
0.89
Depreciation
Rs/kWh
0.35
0.31
Int. on term loan
Rs/kWh
0.49
0.25
Int. on working capital
Rs/kWh
0.34
0.47
RoE
Rs/kWh
0.38
0.36
Total COG
Rs/kWh
6.91
5.41
Levellised Tariff
Discount Factor
Variable Cost
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

[Typetext]

Unit

Year -->

1
1

2
1
7.45
0.74
6.70

3
1
7.45
0.74
6.70

4
1
7.45
0.74
6.70

5
1
7.45
0.74
6.70

6
1
7.45
0.74
6.70

7
1
7.45
0.74
6.70

8
1
7.45
0.74
6.70

9
1
7.45
0.74
6.70

10
1
7.45
0.74
6.70

11
1
7.45
0.74
6.70

12
1
7.45
0.74
6.70

13
1
7.45
0.74
6.70

14
1
7.45
0.74
6.70

15
1
7.45
0.74
6.70

16
1
7.45
0.74
6.70

17
1
7.45
0.74
6.70

18
1
7.45
0.74
6.70

19
1
7.45
0.74
6.70

20
1
7.45
0.74
6.70

2
42.29
23.33
30.14
23.97
24.00
143.73
2 14

3
44.71
23.33
27.27
25.04
24.00
144.34
2 15

4
47.26
23.33
24.40
26.16
24.00
145.15
2 17

5
49.97
23.33
21.53
27.35
24.00
146.17
2 18

6
52.83
23.33
18.66
28.59
24.00
147.41
2 20

7
55.85
23.33
15.79
29.91
24.00
148.88
2 22

8
59.04
23.33
12.92
31.29
24.00
150.58
2 25

9
62.42
23.33
10.05
32.75
24.00
152.55
2 28

10
65.99
23.33
7.18
34.29
24.00
154.79
2 31

11
69.76
23.33
4.31
36.01
28.80
162.21
2 42

12
73.75
23.33
1.44
37.71
28.80
165.04
2 46

13
77.97
10.00
0.00
39.25
28.80
156.02
2 33

14
82.43
10.00
0.00
41.20
28.80
162.43
2 42

15
87.15
10.00
0.00
43.25
28.80
169.19
2 52

16
92.13
10.00
0.00
45.40
28.80
176.33
2 63

17
97.40
10.00
0.00
47.66
28.80
183.86
2 74

18
102.97
10.00
0.00
50.04
28.80
191.81
2 86

19
108.87
10.00
0.00
52.54
28.80
200.20
2 99

20
115.09
10.00
0.00
55.16
28.80
209.05
3 12

2
3.43
0.63
0.35
0.45
0.36
0.36
5.58

3
3.61
0.67
0.35
0.41
0.37
0.36
5.76

4
3.79
0.71
0.35
0.36
0.39
0.36
5.95

5
3.98
0.75
0.35
0.32
0.41
0.36
6.16

6
4.17
0.79
0.35
0.28
0.43
0.36
6.37

7
4.38
0.83
0.35
0.24
0.45
0.36
6.60

8
4.60
0.88
0.35
0.19
0.47
0.36
6.85

9
4.83
0.93
0.35
0.15
0.49
0.36
7.11

10
5.07
0.98
0.35
0.11
0.51
0.36
7.38

11
5.33
1.04
0.35
0.06
0.54
0.43
7.75

12
5.59
1.10
0.35
0.02
0.56
0.43
8.06

13
5.87
1.16
0.15
0.00
0.59
0.43
8.20

14
6.17
1.23
0.15
0.00
0.61
0.43
8.59

15
6.48
1.30
0.15
0.00
0.65
0.43
9.00

16
6.80
1.37
0.15
0.00
0.68
0.43
9.43

17
7.14
1.45
0.15
0.00
0.71
0.43
9.88

18
7.50
1.54
0.15
0.00
0.75
0.43
10.36

19
7.87
1.62
0.15
0.00
0.78
0.43
10.86

20
8.27
1.72
0.15
0.00
0.82
0.43
11.38

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

8
0.493

9
0.446

10
0.403

11
0.365

12
0.330

13
0.298

3.27 Rs/Kwh
2.29 Rs/Kwh
5.57 Rs/Kwh

14
0.269

15
0.244

16
0.220

17
0.199

18
0.180

19
0.163

20
0.147

Page181


Determination of Accelerated Depreciation for Biomass Gasifier Power Project
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.000%
32.45%
400.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
10.56

2
5.28%
21.12

3
5.28%
21.12

4
5.28%
21.12

5
5.28%
21.12

6
5.28%
21.12

7
5.28%
21.12

8
5.28%
21.12

9
5.28%
21.12

10
5.28%
21.12

11
5.28%
21.12

12
5.28%
21.12

13
5.28%
21.12

14
5.28%
21.12

15
5.28%
21.12

16
5.28%
21.12

17
5.28%
21.12

18
2.88%
11.52

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
160.00

60%
48.00%
12%
192.00

12%
9.60%
2.40%
38.40

2%
1.92%
0.48%
7.68

0%
0.38%
0.10%
1.54

0%
0.08%
0.02%
0.31

0%
0.02%
0.00%
0.06

0%
0.00%
0.00%
0.01

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

149.44
48.49
3.35
1.45

170.88
55.44
6.70
0.83

17.28
5.61
6.70
0.08

-13.44
-4.36
6.70
-0.07

-19.58
-6.35
6.70
-0.09

-20.81
-6.75
6.70
-0.10

-21.06
-6.83
6.70
-0.10

-21.11
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-11.52
-3.74
6.70
-0.06

0.00
0.00
6.70
0.00

0.00
0.00
6.70
0.00

1.00

0.95

0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

0.31

0.28

0.26

0.23

0.21

0.19

0.17

0.15

Discounting Factor
Levellised benefit

0.11

(Rs/kWh)

[Typetext]

Page182

[Typetext]

Page183

Annexure-7H
Select State

Others

Assumption for Biomass Gasifier Power Project Parameters

S. No.
1

Assumption Head
Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Capacity
Installed Power Generation Capacity
Auxillary Consumption during stablisation
Auxillary Consumption after stabilisation
PLF(Stablization for 6 months)
PLF(during first year after Stablization)
PLF(second year onwards)
Useful Life

MW
%
%
%
%
%
Years

1
10%
10%
85%
85%
85%
20

Power Plant Cost

Rs Lacs/MW

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
280.00
120.00

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

280.00
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

120.00
20.00%
10.00
24.00%

2 Project Cost
Capital Cost/MW

400.00

3 Financial Assumptions
Debt: Equity

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.445%
20.0%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital

For Fixed Charges

O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
Fuel Related Assumptions

Months
Months

1
15%
2

Months
%

4
12.80%

Specific Fuel Consumption

kg/kWh

1.25

Base Price

Rs/T

2476

GCV - Biomass
Biomass Price Escalation Factor

Kcal/kg

Biomass

7 Operation & Maintenance

power plant
Total O & M Expenses Escalation

[Typetext]

3300
5.00%
40.00
5.72%

Page184

Determination of Tariff Component: Biomass Gasifier Power Projects

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Unit
MW
MU
MU
MU

Year--->

Fixed Cost
Unit
Year--->
O&M Expenses
Rs Lakh
Depreciation
Rs Lakh
Interest on term loan
Rs Lakh
Interest on working Capital
Rs Lakh
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
Variable COG
Rs/kWh
4.85
O&M expn
Rs/kWh
0.89
Depreciation
Rs/kWh
0.31
Int. on term loan
Rs/kWh
0.25
Int. on working capital
Rs/kWh
0.49
RoE
Rs/kWh
0.38
Total COG
Rs/kWh
7.17
Levellised Tariff
Discount Factor
Variable Cost
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

[Typetext]

Unit

Year -->

1
1
7.45
0.74
6.70

2
1
7.45
0.74
6.70

3
1
7.45
0.74
6.70

4
1
7.45
0.74
6.70

5
1
7.45
0.74
6.70

6
1
7.45
0.74
6.70

7
1
7.45
0.74
6.70

8
1
7.45
0.74
6.70

9
1
7.45
0.74
6.70

10
1
7.45
0.74
6.70

11
1
7.45
0.74
6.70

12
1
7.45
0.74
6.70

13
1
7.45
0.74
6.70

14
1
7.45
0.74
6.70

15
1
7.45
0.74
6.70

16
1
7.45
0.74
6.70

17
1
7.45
0.74
6.70

18
1
7.45
0.74
6.70

19
1
7.45
0.74
6.70

20
1
7.45
0.74
6.70

1
40.00
23.33
33.01
23.94
24.00
144.28
2 15

2
42.29
23.33
30.14
25.00
24.00
144.76
2 16

3
44.71
23.33
27.27
26.12
24.00
145.43
2 17

4
47.26
23.33
24.40
27.30
24.00
146.29
2 18

5
49.97
23.33
21.53
28.54
24.00
147.37
2 20

6
52.83
23.33
18.66
29.85
24.00
148.66
2 22

7
55.85
23.33
15.79
31.23
24.00
150.19
2 24

8
59.04
23.33
12.92
32.68
24.00
151.97
2 27

9
62.42
23.33
10.05
34.21
24.00
154.00
2 30

10
65.99
23.33
7.18
35.81
24.00
156.31
2 33

11
69.76
23.33
4.31
37.61
28.80
163.82
2 44

12
73.75
23.33
1.44
39.40
28.80
166.72
2 49

13
77.97
10.00
0.00
41.01
28.80
157.79
2 35

14
82.43
10.00
0.00
43.05
28.80
164.28
2 45

15
87.15
10.00
0.00
45.19
28.80
171.14
2 55

16
92.13
10.00
0.00
47.44
28.80
178.38
2 66

17
97.40
10.00
0.00
49.81
28.80
186.01
2 78

18
102.97
10.00
0.00
52.29
28.80
194.07
2 90

19
108.87
10.00
0.00
54.90
28.80
202.57
3 02

20
115.09
10.00
0.00
57.65
28.80
211.54
3 16

1
3.44
0.60
0.35
0.49
0.36
0.36
5.59

2
3.61
0.63
0.35
0.45
0.37
0.36
5.77

3
3.79
0.67
0.35
0.41
0.39
0.36
5.96

4
3.98
0.71
0.35
0.36
0.41
0.36
6.16

5
4.18
0.75
0.35
0.32
0.43
0.36
6.38

6
4.39
0.79
0.35
0.28
0.45
0.36
6.61

7
4.61
0.83
0.35
0.24
0.47
0.36
6.85

8
4.84
0.88
0.35
0.19
0.49
0.36
7.11

9
5.08
0.93
0.35
0.15
0.51
0.36
7.38

10
5.34
0.98
0.35
0.11
0.53
0.36
7.67

11
5.60
1.04
0.35
0.06
0.56
0.43
8.05

12
5.88
1.10
0.35
0.02
0.59
0.43
8.37

13
6.18
1.16
0.15
0.00
0.61
0.43
8.53

14
6.48
1.23
0.15
0.00
0.64
0.43
8.94

15
6.81
1.30
0.15
0.00
0.67
0.43
9.36

16
7.15
1.37
0.15
0.00
0.71
0.43
9.81

17
7.51
1.45
0.15
0.00
0.74
0.43
10.28

18
7.88
1.54
0.15
0.00
0.78
0.43
10.78

19
8.28
1.62
0.15
0.00
0.82
0.43
11.30

20
8.69
1.72
0.15
0.00
0.86
0.43
11.85

1
1

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

8
0.493

9
0.446

10
0.403

11
0.365

12
0.330

13
0.298

3.44 Rs/Kwh
2.32 Rs/Kwh
5.75 Rs/Kwh

14
0.269

15
0.244

16
0.220

17
0.199

18
0.180

19
0.163

20
0.147

Page185


Determination of Accelerated Depreciation for Biomass Gasifier Power Project
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.000%
32.45%
400.0

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
10.56

2
5.28%
21.12

3
5.28%
21.12

4
5.28%
21.12

5
5.28%
21.12

6
5.28%
21.12

7
5.28%
21.12

8
5.28%
21.12

9
5.28%
21.12

10
5.28%
21.12

11
5.28%
21.12

12
5.28%
21.12

13
5.28%
21.12

14
5.28%
21.12

15
5.28%
21.12

16
5.28%
21.12

17
5.28%
21.12

18
2.88%
11.52

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
160.00

60%
48.00%
12%
192.00

12%
9.60%
2.40%
38.40

2%
1.92%
0.48%
7.68

0%
0.38%
0.10%
1.54

0%
0.08%
0.02%
0.31

0%
0.02%
0.00%
0.06

0%
0.00%
0.00%
0.01

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

149.44
48.49
3.35
1.45

170.88
55.44
6.70
0.83

17.28
5.61
6.70
0.08

-13.44
-4.36
6.70
-0.07

-19.58
-6.35
6.70
-0.09

-20.81
-6.75
6.70
-0.10

-21.06
-6.83
6.70
-0.10

-21.11
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-21.12
-6.85
6.70
-0.10

-11.52
-3.74
6.70
-0.06

0.00
0.00
6.70
0.00

0.00
0.00
6.70
0.00

1.00

0.95

0.86

0.78

0.70

0.64

0.57

0.52

0.47

0.42

0.38

0.35

0.31

0.28

0.26

0.23

0.21

0.19

0.17

0.15

Discounting Factor
Levellised benefit

[Typetext]

0.11

(Rs/kWh)

Page186

Annexure-8A

Assumption for Biogas Power Project Parameters

S. No.
Assumption Head
1 Power Generation

Sub-Head

Sub-Head (2)

Unit

Assumptions

Installed Power Generation Capacity

Auxillary Consumption during stablisation
PLF
Useful Life
Power Plant Cost
Net Power Plant Cost

MW
%
%
Years
Rs Lacs/MW
Rs Lacs/MW

1
12%
90%
20
1100
800

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
560.00
240.00

Loan Amount
Moratorium Period
Repayment Period(incld Moratorium)
Interest Rate

Rs Lacs
years
years
%

560.00
0
12
12.30%

Equity amount
Return on Equity for first 10 years
RoE Period
Return on Equity after 10 years

Rs Lacs
% p.a
Year

240.00
20.00%
10.00
24.00%

Capacity

2 Project Cost
Capital Cost/MW
3 Financial Assumptions
Debt: Equity

Debt Component

Equity Component

Weighted average of ROE

Discount Rate (equiv. to WACC)
4

22.00%
10.62%

Financial Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)
80 IA benefits

%
%
Yes/No

Depreciation Rate(power plant)

Depreciation Rate 13th year onwards
Years for 5.83% depreciation rate

%
%

32.445%
20.0%
Yes

Depreciation
5.83%
2.50%
12.00

5 Working Capital

For Fixed Charges

O&M Charges
Maintenance Spare
(% of O&M exepenses)
Receivables for Debtors
For Variable Charges
Biomass Stock
Interest On Working Capital
Fuel Related Assumptions

Months
Months

1
15%
2

Months
%

4
12.80%

Biomass
Base Price(FY11-12)

Rs/T

Specific Fuel Consumption

Substrates Price Escalation Factor

kg/kWh

7 Operation & Maintenance

power plant (FY 2012-13)
Total O & M Expenses Escalation

[Typetext]

990
3
5.00%
40.00
5.72%

Page187

Determination of Tariff Component: Biogas Power Projects

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost

Unit
MW
MU
MU
MU

Year--->

1
1
7.88
0.95
6.94

2
1
7.88
0.95
6.94

3
1
7.88
0.95
6.94

4
1
7.88
0.95
6.94

5
1
7.88
0.95
6.94

6
1
7.88
0.95
6.94

7
1
7.88
0.95
6.94

8
1
7.88
0.95
6.94

9
1
7.88
0.95
6.94

10
1
7.88
0.95
6.94

11
1
7.88
0.95
6.94

12
1
7.88
0.95
6.94

13
1
7.88
0.95
6.94

14
1
7.88
0.95
6.94

15
1
7.88
0.95
6.94

16
1
7.88
0.95
6.94

17
1
7.88
0.95
6.94

18
1
7.88
0.95
6.94

19
1
7.88
0.95
6.94

20
1
7.88
0.95
6.94

Unit
Rs Lakh

Year--->

1
234.15
3 38

2
245.86
3 54

3
258.16
3 72

4
271.06
3 91

5
284.62
4 10

6
298.85
4 31

7
313.79
4 52

8
329.48
4 75

9
345.95
4 99

10
363.25
5 24

11
381.41
5 50

12
400.48
5 77

13
420.51
6 06

14
441.53
6 36

15
463.61
6 68

16
486.79
7 02

17
511.13
7 37

18
536.69
7 74

19
563.52
8 12

20
591.70
8 53

1
40.00
46.67
66.01
20.91
48.00
221.58
3.19

2
42.29
46.67
60.27
21.67
48.00
218.89
3.16

3
44.71
46.67
54.53
22.47
48.00
216.38
3.12

4
47.26
46.67
48.79
23.33
48.00
214.05
3.09

5
49.97
46.67
43.05
24.23
48.00
211.91
3.05

6
52.83
46.67
37.31
25.18
48.00
209.99
3.03

7
55.85
46.67
31.57
26.19
48.00
208.28
3.00

8
59.04
46.67
25.83
27.26
48.00
206.80
2.98

9
62.42
46.67
20.09
28.39
48.00
205.57
2.96

10
65.99
46.67
14.35
29.58
48.00
204.59
2.95

11
69.76
46.67
8.61
31.05
57.60
213.69
3.08

12
73.75
46.67
2.87
32.38
57.60
213.27
3.07

13
77.97
20.00
0.00
33.27
57.60
188.84
2.72

14
82.43
20.00
0.00
34.88
57.60
194.91
2.81

15
87.15
20.00
0.00
36.57
57.60
201.32
2.90

16
92.13
20.00
0.00
38.35
57.60
208.08
3.00

17
97.40
20.00
0.00
40.21
57.60
215.22
3.10

18
102.97
20.00
0.00
42.18
57.60
222.75
3.21

19
108.87
20.00
0.00
44.24
57.60
230.70
3.33

20
115.09
20.00
0.00
46.41
57.60
239.10
3.45

1
3.38
0.58
0.67
0.95
0.30
0.69
6.57

2
3.54
0.61
0.67
0.87
0.31
0.69
6.70

3
3.72
0.64
0.67
0.79
0.32
0.69
6.84

4
3.91
0.68
0.67
0.70
0.34
0.69
6.99

5
4.10
0.72
0.67
0.62
0.35
0.69
7.16

6
4.31
0.76
0.67
0.54
0.36
0.69
7.33

7
4.52
0.80
0.67
0.46
0.38
0.69
7.52

8
4.75
0.85
0.67
0.37
0.39
0.69
7.73

9
4.99
0.90
0.67
0.29
0.41
0.69
7.95

10
5.24
0.95
0.67
0.21
0.43
0.69
8.18

11
5.50
1.01
0.67
0.12
0.45
0.83
8.58

12
5.77
1.06
0.67
0.04
0.47
0.83
8.85

13
6.06
1.12
0.29
0.00
0.48
0.83
8.78

14
6.36
1.19
0.29
0.00
0.50
0.83
9.17

15
6.68
1.26
0.29
0.00
0.53
0.83
9.58

16
7.02
1.33
0.29
0.00
0.55
0.83
10.02

17
7.37
1.40
0.29
0.00
0.58
0.83
10.47

18
7.74
1.48
0.29
0.00
0.61
0.83
10.95

19
8.12
1.57
0.29
0.00
0.64
0.83
11.45

20
8.53
1.66
0.29
0.00
0.67
0.83
11.97

Fixed Cost
Unit
Year--->
O&M Expenses
Rs Lakh
Depreciation
Rs Lakh
Interest on term loan
Rs Lakh
Interest on working Capital
Rs Lakh
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
Per unit Fixed Cost
Rs/kWh
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised
Variable COG
Rs/kWh
4.76
O&M expn
Rs/kWh
0.86
Depreciation
Rs/kWh
0.60
Int. on term loan
Rs/kWh
0.48
Int. on working capital
Rs/kWh
0.40
RoE
Rs/kWh
0.73
Total COG
Rs/kWh
7.83
Levellised Tariff
Discount Factor
Variable Cost (FY2012-13)
Levellised Tariff (Fixed)
Applicable Tariff (FY2012-13 )

[Typetext]

Unit

Year -->

1
1

2
0.904

3
0.817

4
0.739

5
0.668

6
0.604

7
0.546

8
0.493

9
0.446

10
0.403

11
0.365

12
0.330

13
0.298

3.38 Rs/Kwh
3.06 Rs/Kwh
6.44 Rs/Kwh

14
0.269

15
0.244

16
0.220

17
0.199

18
0.180

19
0.163

20
0.147

Page188


Determination of Accelerated Depreciation for Biogas Power Project
Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Income Tax (MAT)
Income Tax (Normal Rates)
Capital Cost

90%
5.28%
80%
20.000%
32.45%
800.0

5.28%
80%
32%
800

Years
----------------->
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

1
2.64%
21.12

2
5.28%
42.24

3
5.28%
42.24

4
5.28%
42.24

5
5.28%
42.24

6
5.28%
42.24

7
5.28%
42.24

8
5.28%
42.24

9
5.28%
42.24

10
5.28%
42.24

11
5.28%
42.24

12
5.28%
42.24

13
5.28%
42.24

14
5.28%
42.24

15
5.28%
42.24

16
5.28%
42.24

17
5.28%
42.24

18
2.88%
23.04

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100%
40%
60%
320.00

60%
48.00%
12%
384.00

12%
9.60%
2.40%
76.80

2%
1.92%
0.48%
15.36

0%
0.38%
0.10%
3.07

0%
0.08%
0.02%
0.61

0%
0.02%
0.00%
0.12

0%
0.00%
0.00%
0.02

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

0%
0.00%
0.00%
0.00

Rs Lakh
Rs Lakh
MU
Rs/Unit

298.88
96.97
3.47
2.80
1.00

341.76
110.88
6.94
1.60
0.95

34.56
11.21
6.94
0.16
0.86

-26.88
-8.72
6.94
-0.13
0.78

-39.17
-12.71
6.94
-0.18
0.70

-41.63
-13.51
6.94
-0.19
0.64

-42.12
-13.66
6.94
-0.20
0.57

-42.22
-13.70
6.94
-0.20
0.52

-42.24
-13.70
6.94
-0.20
0.47

-42.24
-13.70
6.94
-0.20
0.42

-42.24
-13.70
6.94
-0.20
0.38

-42.24
-13.70
6.94
-0.20
0.35

-42.24
-13.70
6.94
-0.20
0.31

-42.24
-13.70
6.94
-0.20
0.28

-42.24
-13.70
6.94
-0.20
0.26

-42.24
-13.70
6.94
-0.20
0.23

-42.24
-13.70
6.94
-0.20
0.21

-23.04
-7.48
6.94
-0.11
0.19

0.00
0.00
6.94
0.00
0.17

0.00
0.00
6.94
0.00
0.15

Net Depreciation Benefit

Tax Benefit
Net Energy generation
Per unit benefit
Discounting Factor

Tax Benefit Levellised

Electricity Generation (Levellise
Levellised benefit

[Typetext]

13.91
6.57
(Rs/kWh)
0.21

Page189