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Wind Power Project at Tamil Nadu, India

SGEL - Project IRR Analysis for 4 x G58/850 kW in Tirupur Dist. Tamil Nadu
1)

Input Parameters

Value

Total capacity of WEGs (4 x 850 kWh)


Capacity utilization factor
Annual Gross generation
Line losses on gross generation
Saleable units
Derating p.a. (from 11th full year of operation onwards)
Tariff
O & M Charges for P&M from 3rd Year onwards
O & M Charges for Sub-station from 1st Year onwards
Annual Escalation on O & M charges
Insurance Charges
Administration cost
Annual Escalation on Administration cost
Life of the plant
Salvage value of assets
Loan tenure incl. Moritorium period
Moritorium Period
Loan Repayment period
Interest on Term loan
Interest on working capital
Income Tax ( MAT) FY 2010-11
Income Tax ( Regular) FY 2010-11
Emission Factor
CER entitlement per annum
Price per CER (in Euros)
Exchange rate ( 1 Euro = INR )

2)

Project Cost
Land
Cost of Wind Mill
Total

(INR, million)
7.20
215.60
222.80

Means of Finance
Equity Share Capital
Term Loan
Total

(INR, million)
57.80
165.00
222.80

MW

Source

3.40
27.3%
8.137
2.0
7.97
1%
3.39

TNEB approval & Plant equ


Estimated by third party En
Estimated by third party En
DPR
Computed
DPR & TNERC Tariff Order
DPR & TNERC Tariff Order

P.O. dated 24/12/2010


P.O. dated 24/12/2010
TNERC Tariff Order dt.20/0
Insurance Premium receipt
DPR
DPR
Para 7.9 of TNERC Tariff O
Para 7.10 of TNERC Tariff O

tCO2/GWh

3.42
0.57
5.0%
0.21
1.5
5.0%
20
10%
34
2
32
13.5%
13.0%
20.01%
33.99%
917

(tCO2 e)

7312

Computed

13
60

assumed
assumed

GWh
%
GWh
INR/kWh
INR, million
INR, million
INR, million
INR, million
Years
Quarters
Quarters
Quarters

Loan Sanction letter


Term Loan sanction letter
DPR
Indian Income Tax Act
Indian Income Tax Act
CEA Baseline database Ve

3)

Working Capital assessment:


Details
Receivables
O & M Costs
Spares (1% of Capital Cost)
Total

Months
2
1

Margin Money
Working capital
4)

1.75
5.26

Interest on Term Loan


Particulars / Years

Opening Term Loan


Repayment
Quarter I
Quarter II
Quarter III
Quarter IV
Loan Repayment

165.00

154.69

134.06

113.44

92.81

0.00
0.00
5.16
5.16
10.31

5.16
5.16
5.16
5.16
20.63

5.16
5.16
5.16
5.16
20.63

5.16
5.16
5.16
5.16
20.63

5.16
5.16
5.16
5.16
20.63

Outstanding Term Loan


Quarter I
Quarter II
Quarter III
Quarter IV

165.00
165.00
165.00
159.84
154.69

154.69
149.53
144.38
139.22
134.06

134.06
128.91
123.75
118.59
113.44

113.44
108.28
103.13
97.97
92.81

92.81
87.66
82.50
77.34
72.19

5.57
5.57
5.57
5.39
22.10

5.22
5.05
4.87
4.70
19.84

4.52
4.35
4.18
4.00
17.05

3.83
3.65
3.48
3.31
14.27

3.13
2.96
2.78
2.61
11.49

Interest
Quarter I
Quarter II
Quarter III
Quarter IV
Total Interest on Term Loan
5)

Amount
4.51
0.28
2.23
7.02

Estimation of Book Depreciation

Particulars
Land
Cost of Wind Mill
Total

Total
Cost
7.20
215.60

Depn.
Amt.
0.00
194.04

222.80

194.04

(INR, million)
Realisable
Value
7.20
21.56
28.76

Depreciation per annum

6)

Estimation of Tax Depreciation


Details / Years
Opening balance
Depreciation @ 80%
Closing Balance

7)

(INR, million)
5

215.60
86.24
129.36

129.36
103.49
25.87

25.87
20.70
5.17

5.17
4.14
1.03

1.03
0.83
0.21

Profitability Projections (Without CDM Revenue)


Particulars / Years

Saleable units (GWh)


Tariff (INR/kWh)
Total Revenue

7.97
3.39
27.03

7.97
3.39
27.03

7.97
3.39
27.03

7.97
3.39
27.03

7.97
3.39
27.03

EXPENSES
O & M Charges for P&M
O & M Charges for Sub-station
Insurance Charges
Administration cost
Interest on Term Loan
Interest on Working Capital
Depreciation
Total Expenses

0.00
0.57
0.21
1.50
22.10
0.68
9.70
34.77

0.00
0.60
0.21
1.58
19.84
0.68
9.70
32.61

3.42
0.63
0.21
1.65
17.05
0.68
9.70
33.35

3.59
0.66
0.21
1.74
14.27
0.68
9.70
30.85

3.77
0.70
0.21
1.82
11.49
0.68
9.70
28.37

-7.74
0.00
-7.74

-5.58
0.00
-5.58

-6.32
0.00
-6.32

-3.82
0.00
-3.82

-1.34
0.00
-1.34

Profit Before Tax


Provision for Tax
Profit after Tax
8)

9.70

Calculation of Income Tax Provision (Without CDM Revenue)


Details / Years
Profit before tax
Add: Book Depreciation
Less: Tax Depreciation
Taxable Profit
Income Tax - MAT
Income Tax - Regular
Tax

-7.74
9.70
86.24
-84.28
0.00
0.00
0.00

-5.58
9.70
103.49
-99.36
0.00
0.00
0.00

-6.32
9.70
20.70
-17.32
0.00
0.00
0.00

-3.82
9.70
4.14
1.74
0.00
0.00
0.00

-1.34
9.70
0.83
7.54
0.00
0.00
0.00

9)

Internal Rate of Return (Without CDM Revenue)


Particulars

-7.74
22.10
9.70
28.65

-5.58
19.84
9.70
33.77

-6.32
17.05
9.70
5.89

-3.82
14.27
9.70
0.00

52.71

57.74

26.32

20.15

Saleable units (GWh)


Tariff (INR/kWh)
Power Revenue
CDM Revenue
Total Revenue

7.97
3.39
27.03
5.70
32.74

7.97
3.39
27.03
5.70
32.74

7.97
3.39
27.03
5.70
32.74

7.97
3.39
27.03
5.70
32.74

7.97
3.39
27.03
5.70
32.74

EXPENSES
O & M Charges for P&M
O & M Charges for Sub-station
Insurance Charges
Administration cost
Interest on Term Loan
Interest on Working Capital
Depreciation
Total Expenses

0.00
0.57
0.21
1.50
22.10
0.68
9.70
34.77

0.00
0.60
0.21
1.58
19.84
0.68
9.70
32.61

3.42
0.63
0.21
1.65
17.05
0.68
9.70
33.35

3.59
0.66
0.21
1.74
14.27
0.68
9.70
30.85

3.77
0.70
0.21
1.82
11.49
0.68
9.70
28.37

-2.03
0.00
-2.03

0.13
0.03
0.10

-0.62
0.00
-0.62

1.88
0.38
1.51

4.37
0.87
3.49

A. Cash outflow
B. Cash inflows
i) Profit after tax
ii) Interest on term loan
iii) Depreciation
iv) Income Tax Benefit
v) Salvage value
Cash flows
Internal Rate of Return

10)

-222.80

-222.80
9.72%

Profitability Projections (With CDM Revenue)


Particulars / Years

Profit Before Tax


Provision for Tax
Profit after Tax
11)

Con.Period

Calculation of Income Tax Provision ( With CDM Revenue)


Particulars / Years
Profit before tax
Add: Book Depreciation

-2.03
9.70

0.13
9.70

-0.62
9.70

1.88
9.70

4.37
9.70

Less: tax Depreciation


Taxable Profit
Income tax - MAT
Income tax - Regular
Tax

12)

86.24
-78.57
0.00
0.00
0.00

103.49
-93.66
0.03
0.00
0.03

20.70
-11.61
0.00
0.00
0.00

4.14
7.45
0.38
0.00
0.38

0.83
13.24
0.87
0.00
0.87

-2.03
22.10
9.70
26.71

0.10
19.84
9.70
31.84

-0.62
17.05
9.70
3.95

1.51
14.27
9.70
0.00

56.48

61.48

30.09

25.48

Internal Rate of Return (With CDM Revenue)


Particulars

Con.Period

A. Cash outflow
B. Cash inflows
i) Profit after tax
ii) Interest on term loan
iii) Depreciation
iv) Income Tax Benefit
v) Salvage value
Cash flows

-222.80

Internal Rate of Return

12.78%

-222.80

Sensitivity Analysis
TNEB approval & Plant equipment specification
Variation Project IRR
Estimated by third party Engg. Consultants (GamGeneration
0.00%
9.72%
Estimated by third party Engg. Consultants (GamProj. cost
0.00%
9.72%
O & M Exps
0.00%
9.72%
Computed
Tariff
0.00%
9.72%
DPR & TNERC Tariff Order dt.20/03/2009
Insert any percentage under column "Variation"
DPR & TNERC Tariff Order dt.20/03/2009
P.O. dated 24/12/2010
P.O. dated 24/12/2010
TNERC Tariff Order dt.20/03/2009
Insurance Premium receipts

Parameter
Generation
Proj. cost
O & M Exps
Tariff
Para 7.9 of TNERC Tariff Order dt.20/03/2009 Benchmark
Para 7.10 of TNERC Tariff Order dt.20/03/2009 With CDM

Loan Sanction letter


Term Loan sanction letter
Indian Income Tax Act
Indian Income Tax Act
CEA Baseline database Ver. 6
Computed
assumed
assumed

-10%
8.20%
11.44%
10.21%
8.20%

0%
9.72%
9.72%
9.72%
9.72%
12.50%
12.78%

10%
11.50%
8.64%
9.62%
11.50%

http://in.reuters.com/article/2011/

Where the Proejct IRR ( without CDM ) reaches Benchmark


Increase in Generation by
16.70%
Decrease in Project cost by
15.90%
Decrease in O&M Costs by
99.00%
Increase in Tariff by
16.70%

(INR, million)
6
7

72.19

51.56

30.94

10.31

5.16
5.16
5.16
5.16
20.63

5.16
5.16
5.16
5.16
20.63

5.16
5.16
5.16
5.16
20.63

5.16
5.16
0.00
0.00
10.31

72.19
67.03
61.88
56.72
51.56

51.56
46.41
41.25
36.09
30.94

30.94
25.78
20.63
15.47
10.31

10.31
5.16
0.00
0.00
0.00

2.44
2.26
2.09
1.91
8.70

1.74
1.57
1.39
1.22
5.92

1.04
0.87
0.70
0.52
3.13

0.35
0.17
0.00
0.00
0.52

(INR, million)
6
0.21
0.21
0.00

10

11

12

13

7.97
3.39
27.03

7.97
3.39
27.03

7.97
3.39
27.03

7.97
3.39
27.03

7.97
3.39
27.03

7.89
3.39
26.76

7.89
3.39
26.76

7.89
3.39
26.76

3.96
0.73
0.20
1.91
8.70
0.68
9.70
25.90

4.16
0.77
0.20
2.01
5.92
0.68
9.70
23.44

4.36
0.81
0.20
2.11
3.13
0.68
9.70
21.00

4.58
0.85
0.20
2.22
0.52
0.68
9.70
18.76

4.81
0.89
0.20
2.33
0.68
9.70
18.62

5.05
0.93
0.20
2.44
0.68
9.70
19.02

5.30
0.98
0.20
2.57
0.68
9.70
19.44

5.57
1.03
0.20
2.69
0.68
9.70
19.88

1.14
0.23
0.91

3.59
0.72
2.87

6.03
1.21
4.82

8.28
1.66
6.62

8.42
1.68
6.73

7.75
1.55
6.20

7.33
1.47
5.86

6.88
1.38
5.51

10

11

12

13

1.14
9.70
0.21
10.63
0.23
0.00
0.23

3.59
9.70
0.00
13.29
0.72
0.00
0.72

6.03
9.70
0.00
15.73
1.21
0.00
1.21

8.28
9.70
0.00
17.98
1.66
0.00
1.66

8.42
9.70
0.00
18.12
1.68
0.00
1.68

7.75
9.70
0.00
17.45
1.55
0.00
1.55

7.33
9.70
0.00
17.03
1.47
0.00
1.47

6.88
9.70
0.00
16.59
1.38
0.00
1.38

10

11

12

-1.34
11.49
9.70
0.00

0.91
8.70
9.70
0.00

2.87
5.92
9.70
0.00

4.82
3.13
9.70
0.00

6.62
0.52
9.70
0.00

6.73
0.00
9.70
0.00

6.20
0.00
9.70
0.00

5.86
0.00
9.70
0.00

19.85

19.31

18.49

17.66

16.84

16.44

15.90

15.56

10

11

12

13

7.97
3.39
27.03
5.70
32.74

7.97
3.39
27.03
5.70
32.74

7.97
3.39
27.03
5.70
32.74

7.97
3.39
27.03
5.70
32.74

7.97
3.39
27.03
5.70
32.74

7.89
3.39
26.76
5.65
32.41

7.89
3.39
26.76
5.65
32.41

7.89
3.39
26.76
5.65
32.41

3.96
0.73
0.20
1.91
8.70
0.68
9.70
25.90

4.16
0.77
0.20
2.01
5.92
0.68
9.70
23.44

4.36
0.81
0.20
2.11
3.13
0.68
9.70
21.00

4.58
0.85
0.20
2.22
0.52
0.68
9.70
18.76

4.81
0.89
0.20
2.33
0.00
0.68
9.70
18.62

5.05
0.93
0.20
2.44
0.00
0.68
9.70
19.02

5.30
0.98
0.20
2.57
0.00
0.68
9.70
19.44

5.57
1.03
0.20
2.69
0.00
0.68
9.70
19.88

6.84
1.37
5.47

9.29
1.86
7.43

11.73
2.35
9.39

13.98
2.80
11.18

14.12
2.83
11.30

13.39
2.68
10.71

12.97
2.60
10.38

12.53
2.51
10.02

10

11

12

13

6.84
9.70

9.29
9.70

11.73
9.70

13.98
9.70

14.12
9.70

13.39
9.70

12.97
9.70

12.53
9.70

0.21
16.33
1.37
0.00
1.37

0.00
19.00
1.86
0.00
1.86

0.00
21.44
2.35
0.00
2.35

0.00
23.68
2.80
0.00
2.80

0.00
23.82
2.83
0.00
2.83

0.00
23.10
2.68
0.00
2.68

0.00
22.68
2.60
0.00
2.60

0.00
22.23
2.51
0.00
2.51

10

11

12

3.49
11.49
9.70
0.00

5.47
8.70
9.70
0.00

7.43
5.92
9.70
0.00

9.39
3.13
9.70
0.00

11.18
0.52
9.70
0.00

11.30
0.00
9.70
0.00

10.71
0.00
9.70
0.00

10.38
0.00
9.70
0.00

24.68

23.87

23.05

22.22

21.41

21.00

20.42

20.08

tp://in.reuters.com/article/2011/07/04/india-plr-idINL3E7I40H020110704

(INR, million)
19
20

14

15

16

17

18

7.89
3.39
26.76

7.89
3.39
26.76

7.89
3.39
26.76

7.89
3.39
26.76

7.89
3.39
26.76

7.89
3.39
26.76

7.89
3.39
26.76

5.85
1.08
0.20
2.83
0.68
9.70
20.34

6.14
1.14
0.20
2.97
0.68
9.70
20.83

6.45
1.19
0.19
3.12
0.68
9.70
21.34

6.77
1.25
0.19
3.27
0.68
9.70
21.88

7.11
1.31
0.19
3.44
0.68
9.70
22.44

7.46
1.38
0.19
3.61
0.68
9.70
23.03

7.84
1.45
0.19
3.79
0.68
9.70
23.65

6.42
1.28
5.14

5.93
1.19
4.75

5.42
1.09
4.34

4.89
4.96
-0.07

4.32
4.77
-0.44

3.73
4.57
-0.84

3.11
4.35
-1.25

14

15

16

17

18

6.42
9.70
0.00
16.12
1.28
0.00
1.28

5.93
9.70
0.00
15.64
1.19
0.00
1.19

5.42
9.70
0.00
15.12
1.09
0.00
1.09

4.89
9.70
0.00
14.59
0.98
4.96
4.96

4.32
9.70
0.00
14.02
0.86
4.77
4.77

(INR, million)
19
20
3.73
9.70
0.00
13.43
0.75
4.57
4.57

3.11
9.70
0.00
12.81
0.62
4.35
4.35

(INR, million)
19
20

13

14

15

16

17

18

5.51
0.00
9.70
0.00

5.14
0.00
9.70
0.00

4.75
0.00
9.70
0.00

4.34
0.00
9.70
0.00

-0.07
0.00
9.70
0.00

-0.44
0.00
9.70
0.00

-0.84
0.00
9.70
0.00

15.21

14.84

14.45

14.04

9.63

9.26

8.87

(INR, million)
19
20

14

15

16

17

18

7.89
3.39
26.76
5.65
32.41

7.89
3.39
26.76
5.65
32.41

7.89
3.39
26.76
5.65
32.41

7.89
3.39
26.76
5.65
32.41

7.89
3.39
26.76
5.65
32.41

7.89
3.39
26.76
5.65
32.41

7.89
3.39
26.76
5.65
32.41

5.85
1.08
0.20
2.83
0.00
0.68
9.70
20.34

6.14
1.14
0.20
2.97
0.00
0.68
9.70
20.83

6.45
1.19
0.19
3.12
0.00
0.68
9.70
21.34

6.77
1.25
0.19
3.27
0.00
0.68
9.70
21.88

7.11
1.31
0.19
3.44
0.00
0.68
9.70
22.44

7.46
1.38
0.19
3.61
0.00
0.68
9.70
23.03

7.84
1.45
0.19
3.79
0.00
0.68
9.70
23.65

12.07
2.41
9.65

11.58
7.23
4.35

11.07
7.06
4.01

10.53
6.88
3.65

9.97
6.69
3.28

9.38
6.48
2.89

8.75
6.27
2.48

14

15

16

17

18

19

20

12.07
9.70

11.58
9.70

11.07
9.70

10.53
9.70

9.97
9.70

9.38
9.70

8.75
9.70

-1.25
0.00
9.70
0.00
30.51
38.97

0.00
21.77
2.41
0.00
2.41

0.00
21.28
2.32
7.23
7.23

0.00
20.77
2.22
7.06
7.06

0.00
20.23
2.11
6.88
6.88

0.00
19.67
1.99
6.69
6.69

0.00
19.08
1.88
6.48
6.48

0.00
18.46
1.75
6.27
6.27

13

14

15

16

17

18

10.02
0.00
9.70
0.00

9.65
0.00
9.70
0.00

4.35
0.00
9.70
0.00

4.01
0.00
9.70
0.00

3.65
0.00
9.70
0.00

3.28
0.00
9.70
0.00

2.89
0.00
9.70
0.00

19.73

19.36

14.05

13.71

13.36

12.98

12.59

(INR, million)
19
20

2.48
0.00
9.70
0.00
30.51
42.70

96.19
4.01

100.20

Wind Power Project at Tamil Nadu, India


SWEL - Project IRR Analysis for 8 x G58/850 kW in Tirupur Dist. Tamil Nadu
1)

Input Parameters
Total capacity of WEGs (8 x 850 kWh)
Capacity utilization factor
Annual Gross generation
Transmission, Wheeling and Line losses

Value

Source

6.80
21.5%
12.791
5%
0.64
0%
0.00
12.15
1%
4.90
0.10
4.80

DPR & TNEB approval


DPR & Annual Energy
Computed
DPR & TANGEDCO's l

Computed
DPR & Para 7.4 of TNE
Agreement with Group
Agreement with third pa
Computed

7.06
1.09
5.0%
0.42
1.5
5.0%

O&M Agreement with W


TANGEDCO's letter dt.
DPR
Insurance Premium rec
DPR
DPR

Para 7.9 of TNERC Tar


Para 7.10 of TNERC Ta

tCO2/GWh

20
10%
42
2
40
13.50%
13.00%
20.01%
33.99%
917

(tCO2 e)

11495

Computed

13.0
60

assumed
assumed

MW
GWh
GWh

Banking units on Net export


Less: Banking charges @5%
Saleable units
Derating p.a. (from 11th full year of operation onwards)
Sale price
Less: Brokerage charges
Net tariff
O & M Charges for P&M from 3rd Year onwards
O & M Charges for System (grid) operation
Annual Escalation on O & M charges
Insurance Charges
Administration cost
Annual Escalation on Administration cost
Life of the assets/ years
Salvage value of assets
Loan tenure incl. Moritorium period
Moritorium Period
Loan Repayment period
Rate of Interest on term loan
Interest on working capital
Income Tax ( MAT) FY 2010-11
Income Tax ( Regular) FY 2010-11
Emission Factor

INR, million
INR, million
INR, million
INR, million

Ouarters
Quarters
Quarters

Price per CER (in Euros)


Exchange rate ( 1 Euro = INR )

Project Cost
Land
Cost of Wind Mill
Total

INR/kWh
INR/kWh
INR/kWh

Years

CER entitlement per annum

2)

GWh
GWh

(INR, million)
26.07
409.93
436.00

Not considered for simp

Loan Sanction letter


DPR
DPR
Indian Income Tax Act
Indian Income Tax Act
CEA Baseline database

Means of Finance
Equity Share Capital
Term Loan
Total
3)

(INR, million)
174.40
261.60
436.00

Working Capital assessment:


Details
Receivables
O & M Costs
Spares (1% of Capital Cost)
Total

Months
2
1

Margin Money
Working capital
Interest on Working Capital
4)

3.67
11.00
13%

Interest on Term Loan


Particulars / Years

Opening Term Loan


Repayment
Quarter I
Quarter II
Quarter III
Quarter IV
Loan Repayment

261.60

248.52

222.36

196.20

170.04

0.00
0.00
6.54
6.54
13.08

6.54
6.54
6.54
6.54
26.16

6.54
6.54
6.54
6.54
26.16

6.54
6.54
6.54
6.54
26.16

6.54
6.54
6.54
6.54
26.16

Outstanding Term Loan


Quarter I
Quarter II
Quarter III
Quarter IV

261.60
261.60
261.60
255.06
248.52

248.52
241.98
235.44
228.90
222.36

222.36
215.82
209.28
202.74
196.20

196.20
189.66
183.12
176.58
170.04

170.04
163.50
156.96
150.42
143.88

8.83
8.83
8.83
8.61
35.10

8.39
8.17
7.95
7.73
32.23

7.50
7.28
7.06
6.84
28.69

6.62
6.40
6.18
5.96
25.16

5.74
5.52
5.30
5.08
21.63

Interest
Quarter I
Quarter II
Quarter III
Quarter IV
Total Interest on Term Loan
5)

Amount
9.72
0.59
4.36
14.67

Estimation of Book Depreciation


(INR, million)

Particulars
Land
Cost of Wind Mill
Total

Total
Cost
26.07
409.93

Depn.
Amt.
0.00
368.94

Realisable
Value
26.07
40.99

436.00

368.94

67.06

Depreciation per annum

6)

Estimation of Tax Depreciation


Details / Years

409.93
163.97
245.96

245.96
196.77
49.19

49.19
39.35
9.84

9.84
7.87
1.97

1.97
1.57
0.39

Saleable units (GWh)


Tariff (INR/kWh)
Total Revenue

12.15
4.80
58.33

12.15
4.80
58.33

12.15
4.80
58.33

12.15
4.80
58.33

12.15
4.80
58.33

EXPENSES
O & M Charges for P&M
O & M Charges for System (grid)
Insurance Charges
Administration cost
Interest on Term Loan
Interest on Working Capital
Depreciation
Total Expenses

0.00
1.09
0.42
1.50
35.10
1.43
18.45
57.98

0.00
1.14
0.42
1.58
32.23
1.43
18.45
55.24

7.06
1.20
0.42
1.65
28.69
1.43
18.45
58.90

7.41
1.26
0.42
1.74
25.16
1.43
18.45
55.86

7.78
1.32
0.42
1.82
21.63
1.43
18.45
52.85

0.35
0.07
0.28

3.09
0.62
2.47

-0.57
0.00
-0.57

2.46
0.49
1.97

5.47
1.10
4.38

Profitability Projections (Without CDM Revenue)


Particulars / Years

Profit Before Tax


Provision for Tax
Profit after Tax
8)

(INR, million)
5

Opening balance
Depreciation @ 80%
Closing Balance
7)

18.45

Calculation of Income Tax Provision (Without CDM Revenue)


Details / Years
Profit before tax
Add: Book Depreciation
Less: Tax Depreciation

0.35
18.45
163.97

3.09
18.45
196.77

-0.57
18.45
39.35

2.46
18.45
7.87

5.47
18.45
1.57

Taxable Profit
Income Tax - MAT
Income Tax - Regular
Tax
9)

-175.23
0.62
0.00
0.62

-21.48
0.00
0.00
0.00

13.04
0.49
0.00
0.49

22.35
1.10
0.00
1.10

0.28
35.10
18.45
49.34

2.47
32.23
18.45
59.56

-0.57
28.69
18.45
7.30

1.97
25.16
18.45
0.00

103.17

112.71

53.87

45.58

Saleable units (GWh)


Tariff (INR/kWh)
Power Revenue
CDM Revenue
Total Revenue

12.15
4.80
58.33
8.97
67.29

12.15
4.80
58.33
8.97
67.29

12.15
4.80
58.33
8.97
67.29

12.15
4.80
58.33
8.97
67.29

12.15
4.80
58.33
8.97
67.29

EXPENSES
O & M Charges for P&M
O & M Charges for System (grid)
Insurance Charges
Administration cost
Interest on Term Loan
Interest on Working Capital
Depreciation
Total Expenses

0.00
1.09
0.42
1.50
35.10
1.43
18.45
57.98

0.00
1.14
0.42
1.58
32.23
1.43
18.45
55.24

7.06
1.20
0.42
1.65
28.69
1.43
18.45
58.90

7.41
1.26
0.42
1.74
25.16
1.43
18.45
55.86

7.78
1.32
0.42
1.82
21.63
1.43
18.45
52.85

9.32
1.86
7.45

12.06
2.41
9.64

8.39
1.68
6.71

11.43
2.29
9.14

14.44
2.89
11.55

Internal Rate of Return (Without CDM Revenue)


Particulars

10)

Con.Period

A. Cash outflow
B. Cash inflows
i) Profit after tax
ii) Interest on term loan
iii) Depreciation
iv) Income Tax Benefit
v) Salvage value
Cash flows

-436.00

Internal Rate of Return

11.27%

-436.00

Profitability Projections (With CDM Revenue)


Particulars / Years

Profit Before Tax


Provision for Tax
Profit after Tax
11)

-145.17
0.07
0.00
0.07

Calculation of Income Tax Provision ( With CDM Revenue)

Particulars / Years
Profit before tax
Add: Book Depreciation
Less: tax Depreciation
Taxable Profit
Income tax - MAT
Income tax - Regular
Tax

12)

9.32
18.45
163.97
-136.21
1.86
0.00
1.86

12.06
18.45
196.77
-166.26
2.41
0.00
2.41

8.39
18.45
39.35
-12.51
1.68
0.00
1.68

11.43
18.45
7.87
22.01
2.29
0.00
2.29

14.44
18.45
1.57
31.31
2.89
0.00
2.89

7.45
35.10
18.45
46.30

9.64
32.23
18.45
56.51

6.71
28.69
18.45
4.25

9.14
25.16
18.45
0.00

107.29

116.83

58.11

52.75

Internal Rate of Return (With CDM Revenue)


Particulars

Con.Period

A. Cash outflow
B. Cash inflows
i) Profit after tax
ii) Interest on term loan
iii) Depreciation
iv) Income Tax Benefit
v) Salvage value
Cash flows

-436.00

Internal Rate of Return

12.98%

-436.00

Sensitivity Analysis
DPR & TNEB approval & Plant equipment specification
Variation Project IRR
DPR & Annual Energy Potential (AEP) Report
Generation
0.00%
11.27%
Computed
Proj. cost
0.00%
11.27%
DPR & TANGEDCO's letter dt.15/09/2011
O & M Exps 0.00%
11.27%
Tariff
0.00%
11.27%
Not considered for simplification
Benchmark
12.25%
Computed
DPR & Para 7.4 of TNERC Tariff Order dt.20/03/2009
Agreement with Group Captive consumers
Agreement with third party
Computed
O&M Agreement with WEG supplier
TANGEDCO's letter dt.15/09/2011
Insurance Premium receipts

Para 7.9 of TNERC Tariff Order dt.20/03/2009


Para 7.10 of TNERC Tariff Order dt.20/03/2009

Loan Sanction letter

Indian Income Tax Act


Indian Income Tax Act
CEA Baseline database Ver. 6
Computed
assumed
assumed

http://in.reuters.com/article/2011/

(INR, million)
6
7

10

11

143.88

117.72

91.56

65.40

39.24

13.08

6.54
6.54
6.54
6.54
26.16

6.54
6.54
6.54
6.54
26.16

6.54
6.54
6.54
6.54
26.16

6.54
6.54
6.54
6.54
26.16

6.54
6.54
6.54
6.54
26.16

6.54
6.54
0.00
0.00
13.08

143.88
137.34
130.80
124.26
117.72

117.72
111.18
104.64
98.10
91.56

91.56
85.02
78.48
71.94
65.40

65.40
58.86
52.32
45.78
39.24

39.24
32.70
26.16
19.62
13.08

13.08
6.54
0.00
0.00
0.00

4.86
4.64
4.41
4.19
18.10

3.97
3.75
3.53
3.31
14.57

3.09
2.87
2.65
2.43
11.04

2.21
1.99
1.77
1.55
7.50

1.32
1.10
0.88
0.66
3.97

0.44
0.22
0.00
0.00
0.66

(INR, million)
6
0.39
0.39
0.00

10

11

12

13

12.15
4.80
58.33

12.15
4.80
58.33

12.15
4.80
58.33

12.15
4.80
58.33

12.15
4.80
58.33

12.03
4.80
57.74

12.03
4.80
57.74

12.03
4.80
57.74

8.17
1.39
0.42
1.91
18.10
1.43
18.45
49.87

8.58
1.46
0.42
2.01
14.57
1.43
18.45
46.91

9.01
1.53
0.42
2.11
11.04
1.43
18.45
43.98

9.46
1.61
0.42
2.22
7.50
1.43
18.45
41.08

9.93
1.69
0.42
2.33
3.97
1.43
18.45
38.21

10.43
1.77
0.42
2.44
0.66
1.43
18.45
35.60

10.95
1.86
0.42
2.57
1.43
18.45
35.67

11.50
1.95
0.42
2.69
1.43
18.45
36.44

8.46
1.69
6.77

11.42
2.28
9.13

14.35
2.87
11.48

17.25
3.45
13.79

20.11
4.02
16.09

22.14
4.43
17.71

22.07
4.42
17.66

21.30
4.26
17.04

10

11

12

13

8.46
18.45
0.39

11.42
18.45
0.00

14.35
18.45
0.00

17.25
18.45
0.00

20.11
18.45
0.00

22.14
18.45
0.00

22.07
18.45
0.00

21.30
18.45
0.00

26.51
1.69
0.00
1.69

29.86
2.28
0.00
2.28

32.79
2.87
0.00
2.87

35.69
3.45
0.00
3.45

38.56
4.02
0.00
4.02

40.59
4.43
0.00
4.43

40.52
4.42
0.00
4.42

39.75
4.26
0.00
4.26

10

11

12

4.38
21.63
18.45
0.00

6.77
18.10
18.45
0.00

9.13
14.57
18.45
0.00

11.48
11.04
18.45
0.00

13.79
7.50
18.45
0.00

16.09
3.97
18.45
0.00

17.71
0.66
18.45
0.00

17.66
0.00
18.45
0.00

44.46

43.31

42.15

40.96

39.75

38.51

36.82

36.10

10

11

12

13

12.15
4.80
58.33
8.97
67.29

12.15
4.80
58.33
8.97
67.29

12.15
4.80
58.33
8.97
67.29

12.15
4.80
58.33
8.97
67.29

12.15
4.80
58.33
8.97
67.29

12.03
4.80
57.74
8.88
66.62

12.03
4.80
57.74
8.88
66.62

12.03
4.80
57.74
8.88
66.62

8.17
1.39
0.42
1.91
18.10
1.43
18.45
49.87

8.58
1.46
0.42
2.01
14.57
1.43
18.45
46.91

9.01
1.53
0.42
2.11
11.04
1.43
18.45
43.98

9.46
1.61
0.42
2.22
7.50
1.43
18.45
41.08

9.93
1.69
0.42
2.33
3.97
1.43
18.45
38.21

10.43
1.77
0.42
2.44
0.66
1.43
18.45
35.60

10.95
1.86
0.42
2.57
0.00
1.43
18.45
35.67

11.50
1.95
0.42
2.69
0.00
1.43
18.45
36.44

17.43
3.49
13.94

20.38
4.08
16.30

23.31
4.66
18.65

26.21
5.24
20.97

29.08
5.82
23.26

31.02
16.81
14.21

30.95
16.79
14.16

30.18
16.53
13.65

10

11

12

13

17.43
18.45
0.39
35.48
3.49
0.00
3.49

20.38
18.45
0.00
38.83
4.08
0.00
4.08

23.31
18.45
0.00
41.76
4.66
0.00
4.66

26.21
18.45
0.00
44.66
5.24
0.00
5.24

29.08
18.45
0.00
47.53
5.82
0.00
5.82

31.02
18.45
0.00
49.47
6.21
16.81
16.81

30.95
18.45
0.00
49.40
6.19
16.79
16.79

30.18
18.45
0.00
48.63
6.04
16.53
16.53

10

11

12

11.55
21.63
18.45
0.00

13.94
18.10
18.45
0.00

16.30
14.57
18.45
0.00

18.65
11.04
18.45
0.00

20.97
7.50
18.45
0.00

23.26
3.97
18.45
0.00

14.21
0.66
18.45
0.00

14.16
0.00
18.45
0.00

51.63

50.49

49.32

48.13

46.92

45.68

33.32

32.61

tp://in.reuters.com/article/2011/07/04/india-plr-idINL3E7I40H020110704

(INR, million)
19
20

14

15

16

17

18

12.03
4.80
57.74

12.03
4.80
57.74

12.03
4.80
57.74

12.03
4.80
57.74

12.03
4.80
57.74

12.03
4.80
57.74

12.03
4.80
57.74

12.07
2.05
0.42
2.83
1.43
18.45
37.25

12.68
2.15
0.42
2.97
1.43
18.45
38.09

13.31
2.26
0.42
3.12
1.43
18.45
38.98

13.98
2.37
0.42
3.27
1.43
18.45
39.92

14.68
2.49
0.42
3.44
1.43
18.45
40.90

15.41
2.62
0.42
3.61
1.43
18.45
41.93

16.18
2.75
0.42
3.79
1.43
18.45
43.01

20.50
4.10
16.40

19.65
12.95
6.70

18.76
12.65
6.11

17.82
12.33
5.50

16.84
12.00
4.85

15.81
11.64
4.17

14.73
11.28
3.45

14

15

16

17

18

20.50
18.45
0.00

19.65
18.45
0.00

18.76
18.45
0.00

17.82
18.45
0.00

16.84
18.45
0.00

(INR, million)
19
20
15.81
18.45
0.00

14.73
18.45
0.00

38.94
4.10
0.00
4.10

38.10
3.93
12.95
12.95

37.21
3.75
12.65
12.65

36.27
3.57
12.33
12.33

35.29
3.37
12.00
12.00

34.26
3.16
11.64
11.64

33.18
2.95
11.28
11.28

(INR, million)
19
20

13

14

15

16

17

18

17.04
0.00
18.45
0.00

16.40
0.00
18.45
0.00

6.70
0.00
18.45
0.00

6.11
0.00
18.45
0.00

5.50
0.00
18.45
0.00

4.85
0.00
18.45
0.00

4.17
0.00
18.45
0.00

35.49

34.84

25.15

24.56

23.94

23.30

22.62

(INR, million)
19
20

14

15

16

17

18

12.03
4.80
57.74
8.88
66.62

12.03
4.80
57.74
8.88
66.62

12.03
4.80
57.74
8.88
66.62

12.03
4.80
57.74
8.88
66.62

12.03
4.80
57.74
8.88
66.62

12.03
4.80
57.74
8.88
66.62

12.03
4.80
57.74
8.88
66.62

12.07
2.05
0.42
2.83
0.00
1.43
18.45
37.25

12.68
2.15
0.42
2.97
0.00
1.43
18.45
38.09

13.31
2.26
0.42
3.12
0.00
1.43
18.45
38.98

13.98
2.37
0.42
3.27
0.00
1.43
18.45
39.92

14.68
2.49
0.42
3.44
0.00
1.43
18.45
40.90

15.41
2.62
0.42
3.61
0.00
1.43
18.45
41.93

16.18
2.75
0.42
3.79
0.00
1.43
18.45
43.01

29.37
16.25
13.12

28.53
15.97
12.56

27.64
15.66
11.97

26.70
15.35
11.36

25.72
15.01
10.71

24.69
14.66
10.03

23.61
14.29
9.31

3.45
0.00
18.45
0.00
70.73
92.63

14

15

16

17

18

19

20

29.37
18.45
0.00
47.82
5.88
16.25
16.25

28.53
18.45
0.00
46.97
5.71
15.97
15.97

27.64
18.45
0.00
46.08
5.53
15.66
15.66

26.70
18.45
0.00
45.15
5.34
15.35
15.35

25.72
18.45
0.00
44.17
5.15
15.01
15.01

24.69
18.45
0.00
43.14
4.94
14.66
14.66

23.61
18.45
0.00
42.05
4.72
14.29
14.29

(INR, million)
19
20

13

14

15

16

17

18

13.65
0.00
18.45
0.00

13.12
0.00
18.45
0.00

12.56
0.00
18.45
0.00

11.97
0.00
18.45
0.00

11.36
0.00
18.45
0.00

10.71
0.00
18.45
0.00

10.03
0.00
18.45
0.00

32.10

31.57

31.01

30.42

29.80

29.15

28.47

9.31
0.00
18.45
0.00
70.73
98.49

198.59
8.32

206.91