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Project Profile- New

Setting up Wind Power Plant


Product Code

Quality and Standards

: As per Customers Requirement

Month & Year of preparation

: March, 2010

Prepared By

: Micro, Small & Medium Enterprises- DI


Baiss Goddam Industrial Estate
Jaipur- 302006

A. INTRODUCTION
The Project profile envisages to setup turnkey Wind Power plant (1 No. WTG of 600 KWCapacity).
Wind power is today a mature technology, which at windy sites is economic and competitive with
conventional power generation technologies, in particular when taking into account the environmental
impact. At the end of 2004 there were more than 73,800 wind turbines installed world wide corresponding
to about 47,900 MW accumulated capacity
Wind turbines can be setup in farms or ranches, thus benefiting the economy in rural areas, where most of
the best wind sites are found. Farmers and ranchers can continue to work the land because the wind
turbines use only a fraction of the land.
Eligible Investor:Investments made in Wind Farm Projects by Corporate or Non-Corporate Entrepreneurs, by way of
installation of WEGs would be eligible investments, if such investment satisfies following conditions:
(i) If such investment is made in Wind Farm Projects approved by authority administering Wind Energy
Development Fund.
(ii) The WEGs installed are new machines.
(iii) Minimum capacity of WEGs proposed for installation is 225 Kw.
Eligible producers will be treated as an eligible industry under the Incentive Scheme administered by
Industry Department and Sales Tax Schemes administered by Finance Department and Incentives
available to new industrial units under any of the Scheme in operation shall also be available to eligible
producers for establishing Wind Farms or making eligible Investments in WEGs. Concessions given to
industrial units in backward areas will also be available to such eligible producers, if the wind farm is
located in a backward area.

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Long-term benefits of a Wind power project:


a)
b)
c)
d)

Cost of power generation is very low and becomes negligible after pay back period.
Wind power projects give Return on investment to the extent of 18-20% per annum.
No recurring cost of fuel and thus a very low O&M cost.
As an investment opportunity there is assured market for the product i.e. electrical energy, which can
be sold SEB or captive use of power within state.
e) 80% depreciation in very first year is allowed thus saving on account of income tax liability in your
present business.
f)
Loans from financial institutions/Banks are available for Wind Power Projects with a repayment of
7 to 10 yrs. period.
g) Income generated from wind power is exempted from IT for continuous 10 years in block of initial
15 years from the date of commissioning under section 80 (I) A

B. Market Potential
The Wind power programme in India was initiated towards the end of the Sixth Plan, in 1983-84. A
market-oriented strategy was adopted from inception, which has led to the successful commercial
development of the technology. The broad based National programme includes wind resource assessment
activities; research and development support; implementation of demonstration projects to create
awareness and opening up of new sites; involvement of utilities and industry; development of
infrastructure capability and capacity for manufacture, installation, operation and maintenance of wind
electric generators; and policy support. The programme aims at catalyzing commercialisation of wind
power generation in the country. The Wind Resources Assessment Programme is being implemented
through the State Nodal Agencies, Field Research Unit of Indian Institute of Tropical Meteorology
(IITM-FRU) and Center for Wind Energy Technology (C-WET).
1.The Government of Rajasthan adopted a new policy for promoting generation of power through Nonconventional Energy Sources vide Order of Energy Department dated March 11, 1999. This policy is
currently applicable for new capacity creation for generation of power through all Non-conventional
Energy Sources including wind. in view of immense potential of power generation through exploitation of
wind resources in Rajasthan and special incentives required because of special nature of wind as resource,
it has been felt necessary to adopt a specific promotion policy for generation of power by use of wind
resources.
2 There has been encouraging growth in development of wind power projects in the State in the recent
past, primarily due to prevailing incentives and benefits offered in the afore-mentioned Policies.
3 Developers, manufacturers, investors alike have been calling for formulation of a new Policy well
before the expiry of the existing Policy so that the momentum gained is maintained. As a demonstration
of their continued commitment to setting up of wind energy generation capacity in the State of Rajasthan,
developers have shown willingness and registered their applications with RREC for setting up wind
power projects of additional capacity of 200-250 MW.
4 The level of tariff protection with guaranteed escalation and wheeling charges provided in the 2000
Policy, in accordance with MNES guidelines, is no longer affordable to RVPN as it imposes a heavy
financial burden on it. Moreover, the identification of more potential sites, improvement in conversion
efficiency, reduction in lending rates by the financial institutions, availability of large size machines on
commercial scale and downtrend in capital costs, have all necessitated a review of the incentives and
benefits in the existing Policies. A revised Policy is therefore proposed. However the existing Policy
dated 4.2.2000 shall continue to be applicable to those Wind Power Projects, upto the cap of 100 MW, for
which RREC has given specific approval.

-35. A total of 45000 MW gross wind potential has been assessed in the country.
6. IITM has so far identified following potential sites in the various districts of Rajasthan specifying
average wind speed, wind density profile and power potential per square meter.

Annual Mean Wind Power Density (W/M2)

District

Annual Mean Wind Speed KMPH


Extraplated at 30
M
at 20/25 M

at 20/25 M

Extraplated at 30 M

Dhamotar

Chittorgarh

18.8

19.5

149

163

Devgarh

Chittorgarh

19.88

21.38

151

186

Harshnath
Jaisalmer

Sikar
Jaisalmer

20.62
17.8

22.6
19.5

206
159

277
202

Jaswantgarh
Khodal

Udaipur
Barmer

18.9
17

19.4
18.5

142
135

152
170

Mohangarh
Phalodi

Jaisalmer
Jodhpur

15.5
17.4

17.5
19.2

117
142

161
185

Wind
Site

Mast

Against the total wind power capacity of 1639 MW achieved in India(Tamilnadu 895
MW, Maharashtra - 399 MW, Gujarat 166 MW,A.P.- 92.6 MW, Karnataka 93.00 MW,
Rajasthan 60 MW) a gross potential of 5400 MW and technical potential of 845 MW has so far been
assessed in Rajasthan
The break-up of projects implemented in prominent wind potential states
(as on March 31, 2009) is as given below
State-wise Wind Power Installed Capacity In India

State

Gross
Potential
(MW)

Total Capacity (MW) till


31.03.09

Andhra
Pradesh

8968

122.5

Gujarat

10,645

1566.5

Karnataka

11,531

1327.4

Kerala

1171

27.0

Madhya
Pradesh

1019

212.8

Maharashtra 4584

1938.9

-4Orissa

255

Rajasthan

4858

738.4

West Bengal
Tamil Nadu

1.1
5530

Others
Total
(All India)

4304.5
3.2

48,561

10242.3

*Recently revised by state Government to 5200 MW

Wind power potential has been assessed assuming 1% of land availability for wind farms requiring @12 ha/MW in
sites having wind power density in excess of 200 W/sq.m. at 50 m hub-height.

C. BASIS AND PRESUMPTIOS:This project is beneficial for the energy intensive unit. As per the order from Gov. of Rajasthan, it is
allowed to calculate depreciation as 80 % in first 2 years. Due to this, the unit can get the benefit of tex
shield @ 33.0 % of Rs. 50.29 lakhs saved from the tax per year.
Interest on Loan considering 5% interest
Subsidy
Repayment Period (Years)

6.50%
9

Moratorium Period (Year)

In state of Rajasthan as per new wind power policy for installation at Jaisalmer, Jodhpur,
Barmer . RVPN / DISCOMS would pay a rate of Rs. 4.28 per unit
As the plants estimated life Period is 20 year, the dep. has been calculated @ 5% for plant
& machinery.

D. IMPLEMENTATION SCHEDULE
The major activities and the time required for competition of each activity and their implementation are
illustrated below:

Sl. No.
1

Activity
Selection of Site

Months
-

Weeks
2

Preparation of Project Report

Provisional Registration

Financial Arrangements

Procurement of Machinery

Developing linkage with State


Electricity Board

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Installation, Electrification and


commissioning of Machinery

Trial and Commercial Production

Total

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E. TECHNICAL ASPECTS
Wind is a form of solar energy. Winds are caused by the uneven heating of the atmosphere by the sun, the
irregularities of the earth's surface, and rotation of the earth. Wind flow patterns are modified by the
earth's terrain, bodies of water, and vegetation. Humans use this wind flow, or motion energy, for many
purposes: sailing, flying a kite, and even generating electricity.
The terms wind energy or wind power describe the process by which the wind is used to generate
mechanical power or electricity. Wind turbines convert the kinetic energy in the wind into mechanical
power. This mechanical power can be used for specific tasks (such as grinding grain or pumping water) or
a generator can convert this mechanical power into electricity.
This aerial view of a wind power plant shows how a group of wind turbines can make electricity for the
utility grid. The electricity is sent through transmission and distribution lines to homes, businesses,
schools, and so on.

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Inside the Wind Turbine

Anemometer: Measures the wind speed and transmits wind speed data to the controller.
Blades: Most turbines have either two or three blades. Wind blowing over the blades causes the blades to "lift" and rotate.
Brake: A disc brake, which can be applied mechanically, electrically, or hydraulically to stop the rotor in emergencies.
Controller: The controller starts up the machine at wind speeds of about 8 to 16 miles per hour (mph) and shuts off the
machine at about 55 mph. Turbines do not operate at wind speeds above about 55 mph because they might be damaged by
the high winds.
Gear box: Gears connect the low-speed shaft to the high-speed shaft and increase the rotational speeds from about 30 to
60 rotations per minute (rpm) to about 1000 to 1800 rpm, the rotational speed required by most generators to produce
electricity. The gear box is a costly (and heavy) part of the wind turbine and engineers are exploring "direct-drive"
generators that operate at lower rotational speeds and don't need gear boxes.
Generator: Usually an off-the-shelf induction generator that produces 60-cycle AC electricity.
High-speed shaft: Drives the generator.
Low-speed shaft

F. Quality Control and Standards


-Better pitch controlled for maximum Power harnessing with minimal loss
- Low weight to sweep ratio results in Higher Outputs
-Well balanced blade for higher quality of power with minimal loss

G. Production Capacity (per annum)


13 lakh unit Electricity per Annum
Plant cap. 0.60 MW (1 no. WTG of 600 KW capacity, Model S 52) with 75.0 meter Lattice Tower.

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H. Motive Power
The electric Motive power required initially for this project would be around 2 KWH. However
once the production started the self generated power will be utilized.

I. Pollution Control
Wind turbines produce energy without pollution, eventually leading to a reduction in the
emission of carbon dioxide, nitrogen oxide and sulphur dioxide. The use of wind energy may
therefore contribute to reduce global climate change, acid rain and other serious environmental
problems.
Although the environmental impact of wind energy obviously is lower than that of conventional
energy sources, there are some potentially negative effects on the environment, especially when
it comes to establishing large wind farms of several hundred large wind turbines. Over the years
the main environmental concerns when constructing wind farms have been visual impact, noise
and the risk of bird-collisions.
Today noise is dealt with in the planning phase and normally it possesses little problems to build
wind turbines close to human settlements. The visual effects of wind turbine may, however,
create some controversy, as some people believe they are having a severe negative visual impact
of the landscape, while others find them beautiful.

J. Energy Conservation
Well balanced blade and pitch control will results in high power generation with minimal loss.

K. Financial Aspects
1.Fixed Capital
Land and Building- on lease
Land Sublease Charges

Rs. 9.00 Lakh

2.. Machinery and EquipmentsWind power plant 0.60 MW

Rs. 381 Lakh

(1 no. WTG of 600 KW capacity, Model S 52 with 75.0 meter Lattice Tower)

3. Total

fixed investment

Rs. 390 lakhs

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4. Working Capital (per Month)


I. Personnel
S.
No

Designation

No.

Salary (in Rs.)

Amount (In Rs.)

Works Manager

10,000

10,000

Peon/Watchman

3,000

3,000

Skilled workers

5,000

10,000

Helpers

2,500

2,500

Office Clerk/ Store Keeper

3,500

3,500

29000
4500

Total

Rs. 33, 500

Add perquisites @15% of salary

II. Raw Materials and Consumables (per month)


S.
No.
1

Description
Misc. Maintenance hardware items i.e.
Nuts, bolts, Washer, belts etc.

Indigenous/
Imported

Qty.
(Nos.)
LS

Indigenous

Total

III. water & Power Utilities Rs. 500/IV. Other contingent Expenses (per month) (Rs.)
1

Insurance

4,000

Transportation and Handling

1, 000

Repairs And Maintenance

5,000

Stationary , Postage and telephone

1,500

Advertisement/ Sales Promotion

1,000

Miscellaneous Expenditure like cotton waste, coating


materials etc.

1,000

Total

Rs. 13,500

V. Total Recurring Expenditure (per month (IN Rs.)


1
2
3
4

Personnel
Raw Material
Utilities
Other Expenses
Total

Working capital for 1 month

33,500
6500
500
13500
54,000
Rs. 54000

= Rs. 54,000

Amount (In Rs.)


5000
Rs. 5,000

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VI. Working capital for 3 months

= Rs. 1,62,000

5. Total Capital Investment


a) Fixed Capital
b) Working capital for 3 months
Total

= Rs. 390 lakh


= Rs. 1.62 Lakh
= Rs.391.62 Lakh

6. Means of Finance IREDA / BANK

Rs Lacs

Bank Finance / Govt. of


India Grant under Cluster
programme

70%

273.00

Company's Equity

30%

118.62

100.00%

391.62

Total Expenses

L. Financial Analysis:(1) Cost of Production (per Annum)

Rs. In Lakh
6.48

Recurring Exp.

As per govt. Incentive scheme, There is a


Tax Shield benefit on 80 % depreciation hence
Depreciation on Machinery and Equipments
may be treated as nil.

Interest on Total Capital Investment @ 6.5%

26
32.48

Total

(2)

Sales Proceeds (per Annum)

a. The annual estimated generation is 13.00 Lac units per WTG per year
at WTG Controller at 100% grid availability @4.28 per unit

b.

Payment from CDM @ 0.25 Rs. Per unit

(4)

Profit (per year)

= 3.25 lakh
Total = 58.89 Lakhs

Sales- Cost of Production = Rs. 26.41 Lakh

(5)Net profit Ratio on Sales


Profit (per Year)

26.41

X 100

109.18

= 44.85 %

(6) Rate of Return


Profit (per Year) = 26.41 X100
Total Capital Inv.
391.74

= 55.4 lakh

= 6.74%

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(7) Break even Point


1 Insurance

0.48

2 Interest on capital Investment

26

Depreciation on Machinery, furnace, Office equipments,


instruments, tools etc.

4 40% of salaries and wages

1.608

5 40% utilities

0.024

6 40% of other expenses (excluding rent)

0.456
28.568

Total fixed Cost

B.E.P = Fixed Cost X 100


Fixed Cost + Profit
=

28.568
28.568 + 26.41

Break Even Point = 51.96%

X 100

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Addresses of Machinery and Equipment Suppliers


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