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CENTRAL ELECTRICITY REGULATORY COMMISSION

NEW DELHI
Petition No. SM/03/2016 (Suo-Motu)
Coram:1.Shri Gireesh B. Pradhan, Chairperson
2. Shri A. K. Singhal, Member
3. Shri A. S. Bakshi, Member
4. Dr. M.K.Iyer, Member
Date of Hearing: 12th April 2016

Date of Order: 29th April 2016

IN THE MATTER OF
Determination of levellised generic tariff for FY 2016-17 under Regulation 8 of
the Central Electricity Regulatory Commission (Terms and Conditions for Tariff
determination from Renewable Energy Sources) Regulations, 2012.

ORDER
1. The Commission notified the Central Electricity Regulatory Commission (Terms and
Conditions for Tariff determination from Renewable Energy Sources) Regulations,
2012, on 06.02.2012 (hereinafter referred to as the RE Tariff Regulations), which
provide for terms and conditions and the procedure for determination of tariff of
the following categories of Renewable Energy (RE) generating stations:
(a) Wind Power Projects;
(b) Small Hydro Projects;
(c) Biomass Power Projects with Rankine Cycle technology;
(d) Non-fossil fuel-based Co-generation Plants;
(e) Solar Photo Voltaic (PV)Projects;
(f) Solar Thermal Power Projects;
(g) Biomass Gasifier based Power Projects; and
(h) Biogas based Power Projects.
2.

The Commission, in the meanwhile, notified the Central Electricity Regulatory

Commission (Terms and Conditions for Tariff determination from Renewable Energy
Sources) (First Amendment) Regulations, 2014 (hereinafter referred to as the RE Tariff
(First Amendment) Regulations), on 18.03.2014, wherein, various technical norms of

Biomass Power Projects with Rankine Cycle technology have been amended. These
norms are effective from the date of notification of the First Amendment Regulations.

3.

The Commission further notified the Central Electricity Regulatory Commission

(Terms and Conditions for Tariff determination from Renewable Energy Sources)
(Second Amendment) Regulations, 2014 (hereinafter referred to as the RE Tariff
(Second Amendment) Regulations), on 5.01.2015, wherein, the use of fossil fuels in
biomass power plants has been limited to the extent of 15% in terms of calorific value
on annual basis, till 31.03.2017.

4.

The Commission, also notified the Central Electricity Regulatory Commission

(Terms and Conditions for Tariff determination from Renewable Energy Sources) (Third
Amendment) Regulations, 2014 (hereinafter referred to as the RE Tariff (Third
Amendment) Regulations), on 10.07.2015, wherein, Station Heat Rate and calorific
value of the fuel used for biomass power projects using fossil fuel up to 15 % have been
defined.

5.

The Commission, also notified the Central Electricity Regulatory Commission

(Terms and Conditions for Tariff determination from Renewable Energy Sources)
(Fourth Amendment) Regulations, 2015, on 7.10.2015 wherein, various technical norms
of Waste to Energy (viz Municipal Solid Waste (MSW) and Refuse Derived Fuel (RDF)
were specified. The Commission is of the opinion that not much time has elapsed since
the notification of the regulations, therefore it is prudent to fix the capital cost and
tariff of such projects once more data is available with the Commission. Therefore, the
Commission has decided to issue the Tariff Order for MSW / RDF projects separately, till
such time it is proposed that the tariff as per order dated 7.10.2015 shall continue to be
in force.
6.

The Commission, also notified the Central Electricity Regulatory Commission

(Terms and Conditions for Tariff determination from Renewable Energy Sources) (Fifth
Amendment) Regulations, 2016, on 30.03.2016 wherein, Operation and Maintenance
(O&M) expenses for Solar PV projects for FY 2016-17 have been specified.

7.

The Regulations enjoin upon the Commission to determine the generic tariff on

the basis of the suo-motu petition, for the RE technologies for which norms have been
provided in the RE Tariff Regulations. Generic Tariff is different from project specific
tariff for which a project developer has to file petition before the Commission as per
the format provided in the RE Tariff Regulations. Pertinently, project specific tariff has
been envisaged for the technologies which are still at the nascent stage of
development, and the Commission shall determine project specific tariff for such
technologies on a case to case basis.
8.

Clause (1) of Regulation 8 of the RE Tariff Regulations provides that the

Commission shall determine the generic tariff on the basis of suo-motu petition at the
beginning of each year of the Control period for renewable energy technologies for
which norms have been specified under the Regulations.

9.

The Commission has notified the RE Tariff Regulations on 06.02.2012 and

subsequently issued generic suomotu tariff orders, which were applicable for the
renewable energy projects to be commissioned during first, second, third and fourth
year of the control period (i.e. FY 2012-13, FY 2013-14, FY 2014-15 and FY-2015-16)."
10.

The Commission, in due discharge of the mandate under Regulation 8(1) of the

RE Tariff Regulations issued Order proposing Determination of generic levellised


generation tariff for FY 201617 under Regulation 8 of the Central Electricity Regulatory
Commission (Terms and Conditions for Tariff determination from Renewable Energy
Sources) Regulations, 2012, (Petition No. 03/SM/2016) dated 30th March 2016 and
invited comments/suggestions/objections from the stakeholders. A Public Notice was
issued

on

30th

March

2016

stating

the

last

date

of

submission

of

comments/suggestions/objections as 11th April 2016.

11.

In response, written comments/suggestions/objections were received from the

following stakeholders:
1. World Wind Energy Association (WWEA)
2. Indian Wind Turbine Manufactures Association (IWTMA)
3. Acme Cleantech Solutions Pvt. Ltd.
4. Wind World (India) Ltd (WWIL)
3

Subsequently, a public hearing was held on 12th April 2016 and the following

12.

stakeholders made submissions during the hearing:


1. World Wind Energy Association (WWEA)
2. Indian Wind Turbine Manufactures Association (IWTMA)

13.

The Commission has considered the views/comments/suggestions of the

stakeholders and the analyses/decisions of the Commission thereon are presented as


under:
A. Change in Surcharge on Income Tax
Indian Wind Turbine Manufactures Association (IWTMA) and Wind World India Ltd
(WWIL) have commented that surcharge on Income Tax has been increased from
10% to 12% for the assessment year 2016-17. Accordingly, it is requested that
income tax be revised to 34.61% and Minimum Alternate Tax (MAT) rate to
21.34% instead of 33.99% and 20.00% respectively.
Further, IWTMA commented that with the change in Income Tax and MAT, ROE
should be re- determined as 20.34% for the first 10 years and 24.47% for after 10
years.
IWTMA also suggested to re-calculate Discounting factor incorporating the new
Income Tax rate, as follows:
={(Interest on loan * 70 % * (1-Income Tax)+ (16 % * 30 %)}
={(12.76% * 70 % *(1-34.61%)+(16%*30%)}
=10.64%.
Analysis and Decision
IWTMA and Wind World India have commented that Surcharge rate has increased
resulting in higher effective Corporate Tax rate and MAT rate. They have requested
that ROE and Discounting Factor should be modified accordingly.
The Commission clarifies that ROE is fixed in the RE Tariff Regulations at 20% for
first 10 years and 24% 11th year onwards. Regulation 16(2) states:
The normative Return on Equity shall be:
a) 20% per annum for the first 10 years.
b) 24% per annum 11th years onwards.

The suggestion for change in the ROE relates to amendment to the Regulations,
which is beyond the scope of the present exercise of generic tariff determination.
Regarding the Discounting Factor, the Commission has noted the comment. The
revised surcharge is valid in this case and hence the Discounting Factor is modified
as suggested. However, it should be noted here that revision of discounting factor
(from 10.70% to 10.64%) has negligible impact on the tariff. .
B. Change in Service Tax rate
Wind World India ltd (WWIL) has commented that as per Finance Act 2015, service
tax has increased from 12% to 14% and education cess of 3% has been withdrawn.
This has resulted in 14% of service tax on Operation and Maintenance cost, capital
cost (civil works, erection and commissioning charges and financing cost). In
addition to this Swatch Bharat Cess and Krishi Kalyan Cess is also applicable. Thus, it
is requested to consider impact of Service Tax rate of 15 % in the capital cost
components.
Analysis and Decision
WWIL has commented that modified rate of Service Tax should be incorporated in
the calculations for capital cost and O&M cost. The Commission would like to refer
to the RE Tariff Regulations 2012, which set a benchmark capital cost and O&M
cost for all technologies for the base year, and allowed an yearly escalation rate
based on specific price indices. However, no separate provision for change of
service tax exists in the Regulations. Additionally, for Solar PV and Solar Thermal,
annual review of capital cost benchmark was allowed. This exercise has been
recently concluded via Order dated 23.03.2016 for Petition No. 17/SM/2015.
This suggestion relates to amendment to the Regulations, which is beyond the
scope of the present exercise of generic tariff determination.

C. Accelerated Depreciation Benefit


Acme Cleantech Solutions has commented that as per the Union Budget presented
by Finance Minister for 2016, Accelerated Depreciation benefit from next financial
year shall be restricted to 40% instead of 80%. They have requested to incorporate
the same in determining generic tariff for renewable energy sources.

Analysis and Decision


The modified scheme of Accelerated Depreciation has not been notified yet. Once
notified, the Commission will suitably factor it in the regulations for the next
control period.
D. Composite tariff under new category "Wind-Solar Hybrid"
World Wind Energy Association (WWEA) proposed Wind-Solar Hybrid to be treated
as a new category under RE Technologies as the output of both, Solar and Wind
components is combined at the point of grid connection. The capex saving in a
combined wind-solar project could be of the order of 10-15% and due to both the
facilities being located at the same site, there will also be substantial savings in
O&M. They have also highlighted that a more balanced RE generation mix shall be
beneficial to the grid, as huge amount of solar generation without adequate
balancing resources can be very costly.
Analysis and Decision
WWEA have elaborated in detail the relevance of solar-wind hybrid model as our
country strives towards ambitious RE goals. The Commission appreciates the
comments. The Commission notes that the CERC Tariff Regulations for renewable
energy sources do recognise the hybrid technology and envisages project specific
tariff determination for such technology as sufficient data is not available for
determination of generic tariff in this regard. The Commission would urge the
stakeholders to provide more information to enable generic tariff determination
for hybrid technologies.

The Commission directs the staff to consider these

recommendations while drafting Regulations for the new control period starting
2017-18.
Further, the following comments from WWEA are beyond the scope of the present
regulatory exercise, and shall be addressed in future orders or regulations, as
appropriate.
E. ISTS charges and Losses
WWEA commented that in case of wind energy, such waiver of IST charges and
losses has been included in the National Tariff Policy 2016. This policy needs to be
formalized on an urgent basis so that the ISTS waiver can be availed by wind

projects. This will be aligned with CERC regulation of August 2015 on inter-state
forecasting and scheduling and related deviation settlement mechanism and will
enable flow of wind generated electricity from wind rich states to RE deficit states.
In the absence this waiver, the point of connection (POC) charges are so high that
any project based on ISTS becomes unviable.

F. Incentive for Advanced Wind Technology


WWEA commented that over the last 2-3 years, new wind turbine technologies
optimized for Indian wind regime have been launched. It is requested to incentivize
more efficient technologies with a higher tariff. For wind turbines set up at towers
higher than 100 m, the tariff could be 10 % higher.

G. Solar PV Panels Degradation and Lifetime


WWEA suggested that appropriate and realistic degradation rate must be factored
in while carrying out the analysis. According to an NREL study, this degradation is of
the order of 1%. However, in hot climates both panels and PV cells degrade faster.
According to a Mumbai IIT study, this degradation varies from <1% to 9%. If
projects get degraded by more than 20%, it is considered to have reached the end
of its lifetime. It is recommended nearly 1% for large solar farms and 2% for
Rooftop projects. They have also argued to consider Solar PV project lifetime as 20
years.
14.

The Commission therefore determines the generic tariff of the RE projects for

the fifth year of control period (i.e. FY 2016-17) enclosed as AnnexureI.

Sd/-

Sd/-

Sd/-

Sd/-

[M.K.Iyer]

[A.S.Bakshi]

[A.K.Singhal]

[GIREESH B. PRADHAN]

MEMBER

MEMBER

MEMBER

CHAIRPERSON

New Delhi
Dated 29th April 2016

ANNEXURE-I
THE LEVELLISED GENERIC TARIFF FOR VARIOUS RENEWABLE ENERGY TECHNOLOGIES
FOR FY 2016-17
1. The levellised generic tariffs for various renewable energy technologies, for FY 201617 are discussed below:
USEFUL LIFE
2. Clause (aa) of sub-Regulation (1) of Regulation 2 of the RE Tariff Regulations defines
useful life in relation to a unit of a generating station (including evacuation system)
to mean the following duration from the date of commercial operation (COD) of such
generation facility:
Renewable Energy Projects

Years

Wind energy

25

Small Hydro

35

Biomass power project with Rankine Cycle technology

20

Non-fossil fuel based co-generation

20

Solar PV

25

Solar Thermal

25

Biomass Gasifier

20

Biogas

20

Municipal Solid Waste

20

CONTROL PERIOD.
3. Regulation 5 of the RE Tariff Regulations provides that the control period for
determination of tariff for renewable energy projects (RE projects) shall be of five
years of which the first year of the control period was FY 2012-13. The Provision to the
said regulation stipulates that the tariff determined for the RE projects commissioned
during the control period shall continue to be applicable for the entire duration of the
tariff period as specified in Regulation 6 of the RE Tariff Regulations. Accordingly, the
tariff determined for FY 2016-17 is for the last year of the control period.

TARIFF PERIOD
4. In terms of Regulation 6 of the RE Tariff Regulations, the tariff period in respect of the
RE projects is as under:
Renewable Energy Projects

Years

Wind energy

13*

Small Hydro below 5 MW

35

Small Hydro (5 MW -25 MW)

13*

Biomass

13*

Non-fossil fuel co-generation

13*

Solar PV and Solar Thermal

25

Biomass Gasifier and Biogas

20

* The RE Tariff Regulations provides for a minimum period of thirteen (13) years.
5. 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
tariff determined under the regulations shall be applicable for the duration of the
tariff period.
TARIFF STRUCTURE.
6. Clause (1) of Regulation 9 of the RE Regulations stipulates that the tariff for RE
projects shall be single part tariff consisting of the following fixed cost components:
a.
b.
c.
d.
e.

Return on equity;
Interest on loan capital;
Depreciation;
Interest on working capital;
Operation and maintenance expenses;

For renewable energy technologies having fuel cost component, such as biomass
power projects and non-fossil fuel based co-generation, single part tariff with two
components i.e. fixed cost component and fuel cost component, is to be determined.
TARIFF DESIGN
7. In terms of Regulation 10 of the RE Tariff Regulations, the tariff design for renewable
energy generating stations is as under:
1) The generic tariff shall be determined on levellised basis for the Tariff Period.
Provided that for renewable energy technologies having single part tariff with
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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 operation basis.
2) For the purpose of levellised tariff computation, the discount factor equivalent
to Post Tax weighted average cost of capital shall be considered.
3) Levellisation shall be carried out for the useful life of the Renewable Energy
project while Tariff shall be specified for the period equivalent to Tariff Period.
LEVELLISED TARIFF
8. Levellised Tariff is calculated by carrying out levellisation for useful life of each
technology considering the discount factor for time value of money.
DISCOUNT FACTOR
9. In accordance with Regulation 10(2) of RE tariff regulation, the discount factor
considered for this exercise is equal to the post tax weighted average cost of the
capital on the basis of normative debt: equity ratio (70:30) specified in the
Regulations. Considering the normative debt equity ratio and weighted average of the
post tax rates for interest and equity component, the discount factor is calculated.
Interest Rate considered for the loan component (i.e.70%) of capital cost is 12.76%.
For equity component (i.e. 30%), rate of Return on Equity (ROE) is considered at post
tax ROE of 16%. The discount factor derived by this method for all technologies is
10.64% ((12.76 % 0.70 (1 34.61%)) + (16.0% 0.30)).
CAPITAL COST
10. 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 inter-connection point. The
Commission has specified the normative capital cost, applicable for the first year of
control period i.e. FY 2012-13, for various RE technologies viz. Wind Energy, Small
Hydro Power, Biomass Power based on Rankine cycle, Non-Fossil Fuel based
Cogeneration, Solar PV, Solar Thermal, Biomass Gasifier and Biogas based power
projects.
11. In order to determine the normative capital cost for the remaining years of the control
period, the regulations stipulate the indexation mechanism for Wind Energy, Small
Hydro Power, Biomass Power, Non-Fossil Fuel based Cogeneration, Biomass Gasifier
10

and Biogas based power projects. However, the Capital Cost norms for Solar PV, Solar
Thermal Power Projects and MSW projects shall be reviewed on annual basis by the
Commission. The indexation mechanism shall take into account adjustments in capital
cost with the changes in Wholesale Price Index of Steel and Wholesale Price Index of
Electrical Machinery as per formulation stipulated under the RE Tariff Regulations,
which is reproduced overleaf:
CC(n) = P&M(n)* (1+F1+F2+F3)
P&M(n) = P&M(0) * (1+d(n))
d(n) = [a*{(SI(n-1)/SI(0)) 1} + b*{(EI(n-1)/EI(0)) 1}]/(a+b)
Where,
CC (n) = Capital Cost for nth year
P&M (n) = Plant and Machinery Cost for nth year
P&M (0) = Plant and Machinery Cost for the base year
Note: P&M (0) is to be computed by dividing the base capital cost (for the first year
of the control period) by (1+F1+F2+F3). Factors F1, F2, F3 for each RE technology has
been specified separately, as summarized in following table.
d (n) = Capital Cost escalation factor for year (n) of Control Period
SI (n-1) = Average WPI Steel Index prevalent for calendar year (n-1) of the Control
Period
SI (0) = Average WPI Steel Index prevalent for calendar year (0) at the beginning of
the Control Period
EI (n-1) = Average WPI Electrical Machinery Index prevalent for calendar year (n- 1) of
the Control Period
EI(0) = Average WPI Electrical Machinery Index prevalent for calendar year (0) at the
beginning of the Control Period
a = Constant to be determined by Commission from time to time, (for weightage to
Steel Index)
b = Constant to be determined by Commission from time to time, (for weightage to
Electrical Machinery Index)
F1 = Factor for Land and Civil Works
F2 = Factor for Erection and Commissioning
F3 = Factor for IDC and Financing Cost
The default values of the factors for various RE technologies as stipulated under
the said RE Regulations, is summarized in the table overleaf:

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Parameters

Wind Energy

Biomass based Rankine


cycle Power plant, NonFossil Fuel Based
Cogeneration Biomass
Gasifier and Biogas based
projects

Small Hydro Projects

0.60

0.60

0.70

0.40

0.40

0.30

F1

0.08

0.16

0.10

F2

0.07

0.10

0.09

F3

0.10

0.14

0.14

The Commission has relied on the following sources for relevant information on
various indices:
Source for WPI (electrical & machinery and iron and steel), WPI ( all
commodities), WPI (Price of HSD): Office of Economic Advisor, Ministry
of Commerce & Industry (www.eaindustry.nic.in)

Source for IRC (Average Annual Inflation rate for indexed energy charge
component

in

case

of

captive

coal

mine

source):

CERC

(www.cercind.gov.in)
Technology specific capital cost of RE projects is discussed herein as under:
(A) Capital Cost of Wind Energy for FY 2016-17
12. Regulation 24 provides that the capital cost for wind energy project shall include wind
turbine generator including its auxiliaries, land cost, site development charges and
other civil works, transportation charges, evacuation cost up to inter-connection
point, financing charges and IDC.
13. The Commission, under Regulation 24 (2) has specified the normative capital cost for
wind energy projects as Rs.575 lakhs/MW for FY 2012-13 which shall be linked to the
indexation mechanism specified under Regulation 25 of the RE Tariff Regulations. In
accordance with the above referred Regulation, the Commission determines
normative capital cost of the Wind energy Projects at Rs. 619.80 lakhs/MW for FY
2016-17. The detailed computations of the indexation mechanism and determination

12

of the capital cost for FY 2016-17 thereof, has been enclosed as Appendix-1 of this
Order.
(B) Capital cost of Small Hydro Projects for FY 2016-17
14. Small Hydro Projects for the purpose of the RE Tariff Regulations cover those projects
which are located at the sites approved by the State Nodal Agencies/State
Governments using new plant and machinery and with installed power plant capacity
lower than or equal to 25 MW.
15. The Commission under Regulation 28 (1) has specified the normative capital cost for
small hydro projects for FY 2012-13 as under:
Region

Project Size

Capital Cost
(FY 2012-13)
(Rs. Lakhs/ MW)

Himachal Pradesh,
Uttarakhand and North
Eastern States

Below 5 MW
5 MW to 25 MW

770
700

Other States

Below 5 MW
5 MW to 25 MW

600
550

16. In line with the indexation mechanism, specified in Regulation 29 of the RE


Tariff Regulations, the Commission determines normative capital cost for FY
2016-17 for Small Hydro Projects as under:
Region

Project Size

Capital Cost
(FY 2016-17)
(Rs.lakhs/ MW)

Himachal Pradesh,
Uttarakhand and North
Eastern States

Below 5 MW
5 MW to 25 MW

830.00
754.55

Other States

Below 5 MW
5 MW to 25 MW

646.75
592.86

The detailed computations of the indexation mechanism and the determination of the
capital cost for FY 2016-17 thereof, has been enclosed as Appendix-2 of this Order.
(C) Capital Cost of Biomass based Power Projects for FY 2016-17
17. The Commission, under Regulation 34 of the RE Tariff (First Amendment) Regulations
has specified the normative capital cost for the biomass power projects based on
Rankine cycle technology application for FY 2013-14 as under:
13

a.

Rs. 540 lakhs/MW for project [other than rice straw and juliflora (plantation)
based project] with water cooled condenser;

b.

Rs. 580 lakhs/MW for Project [other than rice straw and juliflora (plantation)
based project] with air cooled condenser;

c.

Rs. 590 lakhs/MW for rice straw and juliflora (plantation) based project with
water cooled condenser;

d.

Rs. 630 lakhs/MW for rice straw and juliflora (plantation) based project with
air cooled condenser.

18. In line with the indexation mechanism, specified in Regulation 35 of the RE Tariff
Regulations, the normative capital cost for FY 2016-17 for Biomass Projects has been
determined considering capital cost specified in the RE Tariff (First Amendment)
Regulations for FY 2013-14 as base year capital cost, average WPI for Steel and
average WPI for Electrical Machinery prevalent for calendar year 2015 considered for
SI (n-1) and EI (n-1) respectively. Average WPI for Steel and average WPI for Electrical
Machinery prevalent for year 2012 for SI (0) and EI (0) respectively. Accordingly, the
Commission determines normative capital cost for FY 2016-17 for Biomass Projects as
under;

Biomass Rankine Cycle Projects


Project [other than rice straw and juliflora (plantation) based
project] with water cooled condenser
Project [other than rice straw and juliflora (plantation) based
project] with air cooled condenser
For rice straw and juliflora (plantation) based project with
water cooled condenser
For rice straw and juliflora (plantation) based project with air
cooled condenser

Capital Cost (FY 201617) (Rs lakhs/ MW)


559.03

600.44

610.80

652.20

19. The detailed computations of the indexation mechanism and the determination of the
capital cost for FY 2016-17 thereof, has been enclosed as Appendix-3 of this Order.

14

(D) Capital Cost of Non-fossil fuel based Cogeneration Projects for FY 2016-17
20. Non-fossil based cogeneration has been defined as the process in which more than
one form of energy is produced in a sequential manner by using biomass. As per
Regulation 4(d) of the RE Tariff Regulations, a project to qualify as the non-fossil based
co-generation project must be using new plant and machinery with topping cycle
mode of operation which uses the non-fossil fuel input for power generation and
utilizes the thermal energy generated for useful heat applications in other industrial
activities simultaneously, and where the sum of useful power output and half of useful
thermal output is greater than 45% of the plants energy consumption during the
season.
21. The Commission under Regulation 47 has specified the normative capital cost for the
Non-Fossil Fuel Based Cogeneration Projects as Rs.420 lakhs/MW for FY 2012-13
which shall be linked to the indexation mechanism specified under Regulation 48 of
the RE Tariff Regulations. In accordance with the above referred Regulation, the
Commission determines the normative capital cost of Non-Fossil Fuel based
Cogeneration power projects at Rs. 452.75 lakhs/MW for FY 2016-17. The detailed
computations of the indexation mechanism and determination of the capital cost for
FY 2016-17 thereof, have been enclosed as Appendix-4 of this Order.
(E) Capital Cost of Solar PV based Power Projects for FY 2016-17
22. Solar Photo-Voltaic (PV) power projects which directly convert solar energy into
electricity using crystalline silicon or thin film technology or any other technology as
approved by the Ministry of New and Renewable Energy and are connected to the
grid, qualify for the purpose of tariff determination under the RE Tariff Regulations.
23. The Commission by way of its suo-motu orders, determined the capital cost as follows:
Year

Capital Cost for Solar PV (Rs. Lakhs/MW)

2010-11

1700

2011-12

1442

2012-13

1000

2013-14

800

2014-15

691

2015-16

605.85

15

24. The Commission under Regulation 57 specified the normative capital cost for the Solar
PV power projects as Rs. 1000 lakhs/MW for FY 2012-13.
25. The Commission vide its suo-motu Order (Petition No. SM/005/2015) dated 31st
March 2015 determined the normative capital cost for the Solar PV power projects as
Rs. 605.85 lakhs/MW for FY 2015-16.
26. It may be seen that over the years, the capital cost has shown a declining trend due to
reasons such as advancement of technologies, reduction in module prices and
economies of scale.
27. The Commission vide its suo-motu Order dated 23rd March 2016 determined the
normative capital cost for the Solar PV power projects as Rs. 530.02 lakhs/MW for FY
2016-17.
(F) Capital Cost of Solar Thermal based Power Projects forFY 2016-17
28. As per Clause 4 of RE Tariff Regulations, in order to qualify for tariff determination
under the RE Tariff Regulations, Solar Thermal Power Project need to be based on
concentrated solar power technologies with line focusing or point focusing (as
approved by the Ministry of New and Renewable Energy) and which uses direct
sunlight to generate sufficient heat to operate a conventional power cycle to generate
electricity.
Year

Capital Cost for Solar Thermal (Rs. lakhs/MW)

2010-11

1300

2011-12

1500

2012-13

1300

2013-14

1200

2014-15

1200

2015-16

1200

29. The Commission vide its suo-motu Order (Petition No. SM/005/2015) dated 03rd
March 2015 determined the normative capital cost for Solar Thermal power projects
as Rs. 1200 lakhs/MW for FY 2015-16.

16

30. The Commission vide its Order dated 23rd March 2016 determined the normative
capital cost for the Solar Thermal power projects as Rs. 1200 lakhs/MW for FY 201617.
(G) Capital Cost of Biomass Gasifier Power Projects for FY 2016-17
31. The Commission under Regulation 66 has specified the normative capital cost for the
Biomass Gasifier power projects based on Rankine cycle to be Rs. 550.00 lakhs/MW
for FY 2012-13. After taking into account capital subsidy of Rs. 150.00 lakhs/MW, net
project cost of Rs. 400.00 lakhs/MW was determined for FY 2012-13 (linked to the
indexation mechanism specified under Regulation 67 of the RE Tariff Regulations). In
accordance with the above referred Regulation, the Commission determines
normative capital cost of Biomass gasifier power projects at Rs. 592.88 lakhs/MW for
FY 2016-17. After taking into account capital subsidy of Rs. 150.00 lakhs/MW, net
project cost will be Rs. 442.88 lakhs/MW for FY 2016-17. The detailed computations of
the indexation mechanism and determination of the capital cost for FY 2016-17
thereof, have been enclosed as Appendix-5 of this Order.
(H) Capital Cost of Biogas based Power Projects for FY 2016-17
32. Grid connected biogas based power projects that use 100% Biogas fired engine,
coupled with Biogas technology for co-digesting agriculture residues, manure and
other bio waste (as may be approved by the Ministry of New and Renewable Energy)
qualify for tariff determination under clause 4 of the RE Tariff Regulations.
33. The Commission under Regulation 76 has specified the normative capital cost for
Biogas based power projects to be Rs. 1100.00 lakhs/MW for FY 2012-13. After taking
into account of capital subsidy of Rs. 300.00 lakhs/MW, net project cost is Rs. 800.00
lakhs/MW for FY 2012-13 (which is linked to the indexation mechanism specified
under Regulation 77 of the RE Tariff Regulations). In accordance with the above
referred Regulation, the Commission determines the normative capital cost of Biogas
based power projects at Rs. 1185.76 lakhs/MW for FY 2016-17. After taking into
account of capital subsidy of Rs. 300.00 lakhs/MW, net project cost will be Rs. 885.76
lakhs/MW for FY 2016-17. The detailed computations of the indexation mechanism
and determination of the capital cost for FY 2016-17 thereof, have been enclosed as
Appendix-6 of this Order.
34. The capital cost for the fifth year (i.e. FY 2016-17) of the control period in respect of
the renewable energy power generating stations is summarized as under:
17

Renewable Energy Projects


(1)

Wind Energy Projects

(2)

Small Hydro Projects


(a) Himachal Pradesh, Uttarakhand and North
Eastern States (less than 5 MW)
(b) Himachal Pradesh, Uttarakhand and North
Eastern States (5MW to 25 MW)

Capital Cost Norm for FY 2016-17


(Rs. lakhs/MW)
619.81

830.00

754.55

(c) Other States (below 5 MW)

646.76

(d) Other States ( 5MW to 25 MW)

592.86

(3) Biomass Power Projects


(a) project [other than rice straw and juliflora
(plantation) based project] with water cooled
condenser
(b) Project [other than rice straw and Juliflora
(plantation) based project] with air cooled
condenser

559.03

600.44

(c) Rice straw and juliflora (plantation) based


project with water cooled condenser

610.80

(d) Rice straw and juliflora (plantation) based


project with air cooled condenser

652.20

(4) Non-fossil fuel based co-generation Power Projects

452.75

(5) Solar PV Power Projects

530.02

(6) Solar Thermal Power Projects

1200.00

(7) Biomass Gasifier Power Projects

442.88

(8) Biogas Power Projects

885.76

18

DEBT-EQUITY RATIO
35. Sub-Regulation (1) of Regulation 13 of the RE Tariff Regulations provides that the
debt-equity ratio of 70:30 is to be considered for determination of generic tariff based
on suo-motu petition.
36. Based on the debt equity ratio of 70:30, the debt and equity components of the
normative capital cost for determination of tariff for the RE projects have been
worked out as under:

Renewable Energy Projects


(1) Wind Energy (for all zones)
(2) Small Hydro
(a) Himachal Pradesh, Uttarakhand and North
Eastern States (below 5 MW)
(b) Himachal Pradesh, Uttarakhand and North
Eastern States (5 MW to 25 MW)
(c) Other States (below 5 MW)
(d) Other States ( 5MW to 25 MW)
(3) Biomass
(a) project [other than rice straw and Juliflora
(plantation) based project] with water cooled
condenser
(b) Project [other than rice straw and Juliflora
(plantation) based project] with air cooled condenser
(c) Rice straw and Juliflora (plantation) based
project with water cooled condenser
(d) Rice straw and Juliflora (plantation) based
project with air cooled condenser
(4) Non-fossil fuel co-generation
(5) Solar PV
(6) Solar Thermal
(7) Biomass Gasifier based Power Projects
(8) Biogas based Power Projects

Debt (Rs.
Lakh)
433.86

Equity (Rs.
Lakh)
185.94

581.00

249.00

528.18
452.73
415.00

226.36
194.03
177.86

391.32

167.71

420.31

180.13

427.56

183.24

456.54

195.66

316.92
371.01
840.00
310.02
620.03

135.82
159.01
360.00
132.86
265.73

RETURN ON EQUITY
37. Sub-Regulation (1) of Regulation 16 of the RE Tariff Regulations provides that the
value base for the equity shall be 30% of the capital cost for generic tariff
determination. Sub-Regulation (2) of the said Regulation stipulates the normative
Return on Equity (ROE) as under:
19

a) 20% per annum for the first 10 years, and


th

b) 24% per annum from the 11 year onwards.


INTEREST ON LOAN
38. Sub-Regulation (1) of Regulation 14 of the RE Regulations provides that the loan
tenure of 12 years is to be considered for the purpose of determination of tariff for RE
projects. Sub-Regulation (2) of the said Regulations provides for computation of the
rate of interest on loan as under:
(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
normative loan outstanding as on April 1st of every year shall be worked out by
deducting the cumulative repayment up to March 31st of previous year from the
gross normative loan.
(b) For the purpose of computation of tariff, the normative interest rate shall be
considered as average State Bank of India (SBI) Base rate prevalent during the first
six months of the previous year plus 300 basis points.
(c) Notwithstanding any moratorium period availed by the generating company,
the repayment of loan shall be considered from the first year of commercial
operation of the project and shall be equal to the annual depreciation allowed".

39. The weighted average State Bank of India (SBI) Base rate prevalent during the first six
months has been considered for the determination of tariff, as shown in the table
below:
From

To

Interest rate

Wednesday, April 1, 2015

Thursday, April 9, 2015

10.00%

Friday, April 10, 2015

Sunday, June 7, 2015

9.85%

Monday, June 8, 2015

Wednesday, September 30, 2015

9.70%

Source: State Bank of India (www.statebankofindia.com)


40. In terms of the above, the computations of interest on loan carried out for
determination of tariff in respect of the RE projects treating the value base of loan as
70% of the capital cost and the weighted average of Base rate prevalent during the

20

first six months of FY 2015-16 (i.e. 9.76%) plus 300 basis points is equivalent to
interest rate of 12.76%.
DEPRECIATION
41. Regulation 15 of the RE Tariff Regulations provides for computation of depreciation in
the following manner:
"(1) The value base for the purpose of depreciation shall be the Capital Cost of the
asset admitted by the Commission. The Salvage value of the asset shall be
considered as 10% and depreciation shall be allowed up to maximum of 90% of the
Capital Cost of the asset.
(2) Depreciation per annum shall be based on Differential Depreciation
Approach' over loan period beyond loan tenure over useful life computed on
Straight Line Method. The depreciation rate for the first 12 years of the Tariff
Period shall be 5.83% per annum and the remaining depreciation shall be spread
over the remaining useful life of the project from 13th year onwards.
(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,
depreciation shall be charged on pro rata basis".
42. In accordance with the above, the rate of depreciation for the first 12 years has been
considered as 5.83% and the rate of depreciation from the 13th year onwards has
been spread over the balance useful life of the RE project as under:
Details

Wind Small
Biomass
Energy Hydro

Non-fossil
Solar Solar Biomass
fuel coBiogas
PV Thermal Gasifier
generation

Useful Life
(in years)

25

35

20

20

25

25

20

20

Rate of
depreciation
for 12 years
(%)

5.83

5.83

5.83

5.83

5.83

5.83

5.83

5.83

Rate of
depreciation
after first 12
years (%)

1.54

0.87

2.51

2.51

1.54

1.54

2.51

2.51

21

INTEREST ON WORKING CAPITAL


43. Regulation 17 of the RE Tariff Regulations provides for the working capital
requirements of the RE projects as under:
(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 accordance with the following:
Wind Energy / Small Hydro Power /Solar PV / Solar thermal
a) Operation & Maintenance expenses for one month;
b) Receivables equivalent to 2 (Two) months of energy charges for sale of
electricity calculated on the normative CUF;
c) Maintenance spare @ 15% of operation and maintenance expenses
(2) The Working Capital requirement in respect of biomass power projects
and non-fossil fuel based co-generation projects shall be computed in
accordance with the following clause:
Biomass (Rankine Cycle Technology), Biomass Gasifier, Biogas Power and
Non-fossil fuel Co-generation
a) Fuel costs for four months equivalent to normative PLF;
b) Operation & Maintenance expense for one month;
c)Receivables equivalent to 2 (Two) months of fixed and variable charges
for sale of electricity calculated on the target PLF;
d) Maintenance spare @ 15% of operation and maintenance expenses
(3) Interest on Working Capital shall be at interest rate equivalent to the
average State Bank of India Base Rate prevalent during the first six months
of the previous year plus 350 basis points.
44. Receivables equivalent to two months of actual fixed cost and variable cost, (as
applicable for biomass power and non-fossil fuel based co-generation) have been
considered. Interest rate has been considered as weighted average of State Bank of
India Base Rate prevalent during the first six months of the previous year plus 350
basis points (equivalent to interest rate of 13.26%). The interest on working capital has
been worked out as specified below for determination of tariff of the RE projects:

22

Details

Wind
Energy

Small
Hydro

Biomass,
Biomass
Gasifier
and
Biogas

Non-fossil
fuel cogeneration

Solar PV

Solar
Thermal

(i) O&M expenses


(month)

(ii) Maintenance
spares (%) of
O&M expenses

15

15

15

15

15

15

(iii) Receivables
(months)

13.26%

13.26%

13.26%

13.26%

13.26%

(A) For Fixed charges

(B) For Variable Charges


Biomass/Bagasse
stock (months)

(C) Interest On
Working
Capital 13.26%
(%)

Source for SBI Base Rate: State Bank of India (www.statebankofindia.com)


OPERATION AND MAINTENANCE EXPENSES
45. Regulation 18 of the RE Tariff Regulations provides for Operation and Maintenance
Expenses (O&M expenses) in respect of RE projects as under:
Operation and Maintenance Expenses
(1) Operation and Maintenance or O&M expenses shall comprise repair and
maintenance (R&M), establishment including employee expenses and
administrative & general expenses.
(2) Operation and maintenance expenses shall be determined for the Tariff Period
based on normative O&M expenses specified by the Commission subsequently
in these Regulations for the first Year of Control Period.
(3) Normative O&M expenses allowed during first year of the Control Period (i.e.
FY 2012-13) under these Regulations shall be escalated at the rate of 5.72% per
annum over the Tariff Period

23

46. The normative O&M expenses for various RE technologies specified under the
relevant provisions of the RE Tariff Regulations are as under:
Wind Energy: Regulation 27 of RE Tariff Regulations provides that the normative
O&M expenses for the first year of the control period (i.e. 2012-13) as Rs. 9 lakh
per MW and shall be escalated at the rate of 5.72% per annum over the tariff
period for determination of the levellised tariff. Accordingly, the Commission has
considered O&M cost norm for wind energy as Rs. 11.24 lakhs/MW for FY 2016-17.
(b) Small Hydro: Regulation 32 of RE Regulations provided for the normative O&M
expenses for small hydro projects for the year 2012-13 which shall be escalated at
the rate of 5.72% per annum over the tariff period for determination of the
levellised tariff. The table below presents the normative O&M Expenses considered
by the Commission for small hydro power for FY2012-13;
Region
Himachal Pradesh,
Uttarakhand and North
Eastern States

Project Size

O&M expenses
(Rs. lakhs/MW)

Below 5 MW

25

5 MW to 25 MW

18

Below 5 MW

20

5 MW to 25 MW

14

Other States

Accordingly, the table below presents the normative O&M Expenses considered by the
Commission for small hydro power for FY 2016-17
Region
Himachal Pradesh,
Uttarakhand and North
Eastern States
Other States

Project Size

O&M expenses
(Rs. lakhs/MW)

Below 5 MW

31.23

5 MW to 25 MW

22.49

Below 5 MW

24.98

5 MW to 25 MW

17.49

(c) Biomass: Regulation 39 of RE Tariff (First Amendment) Regulations provides that the
normative O& M expenses for biomass based projects for the year 2013-14 shall be Rs.
40 Lakh per MW and which shall be escalated at the rate of 5.72% per annum over the

24

tariff period for determination of the levellised tariff. Accordingly, the Commission has
considered O&M cost norm for biomass power as Rs. 47.26 lakhs/MW for FY 2016-17.
(d) Non-fossil fuel co-generation: As per Regulation 55 of RE Tariff Regulations, the
normative O&M Expenses for non-fossil fuel co-generation projects for the year 201213 has been specified as Rs. 16 Lakh per MW which shall be escalated at the rate of
5.72% per annum over the tariff period for determination of the levellised tariff.
Accordingly, the Commission has considered O&M cost norm for non-fossil fuel based
co-generation as Rs. 19.99 lakhs/MW for FY 2016-17.
(e) Solar PV: As per CERC (Terms and Conditions for Tariff determination from Renewable
Energy Sources) (Fifth amendment) Regulations, 2016 the "Normative O&M expenses
for the last year of the Control Period (i.e. FY2016-17) shall be Rs. 7 Lakh per MW".
Accordingly, O&M expense norm for solar PV power projects for FY 2016-17 has been
considered as Rs. 7.00 lakhs/MW.
(f) Solar Thermal: Regulation 63 of the RE Tariff Regulations specified the normative
O&M expenses for solar thermal power projects shall be Rs. 15 lakhs/MW for the first
year of operation, which shall be escalated at the rate of 5.72% per annum over the
tariff period for determination of the levellised tariff. Accordingly, O&M expense norm
for solar thermal power project as Rs. 18.74 lakhs/MW for FY 2016-17, has been
considered.
(g) Biomass Gasifier: Regulation 71 of the RE Tariff Regulations specified the normative
O&M expenses for solar thermal power projects shall be Rs. 40 lakhs/MW for the first
year of operation, which shall be escalated at the rate of 5.72% per annum over the
tariff period for determination of the levellised tariff. Accordingly, the Commission has
considered O&M cost norm for biomass gasifier based power plant as Rs. 49.97
lakhs/MW for FY 2016-17.
(h) Biogas: Regulation 80 of the RE Tariff Regulations specified the normative O&M
expenses for biogas shall be Rs. 40 lakhs/MW for the first year of operation, which shall
be escalated at the rate of 5.72% per annum over the tariff period for determination of
the levellised tariff. Accordingly, theCommission has considered O&M cost norm for
biogas based power plant as Rs. 49.97 lakhs/MW for FY 2016-17.

25

47. The normative O&M expenses have been worked out as specified above for
determination of tariff for the renewable energy generating stations.
CAPACITY UTILISATION FACTOR
48. Regulations 26, 30, 58 and 62 of the RE Tariff Regulations specify the norms for
Capacity Utilization Factor (CUF)/Plant Load Factor (PLF) in respect of the Wind
Energy, Small Hydro, Solar PV and Solar Thermal based power generating stations as
per the details given in the table below which has been considered for determination
of tariff.
Renewable Energy Projects

CUF

(A) Wind Energy: Annual Mean Wind Power Density (W/m2)


Wind zone - 1 (Up to 200)
Wind zone - 2 (201 - 250)
Wind zone - 3 (251 - 300)
Wind zone - 4 (301 - 400)
Wind zone - 5 (Above 400)

20 %
22 %
25 %
30 %
32 %

(B) Small Hydro


(i) Himachal, Uttarakhand and North Eastern States
(ii) Other States

45 %
30 %

(C) Solar PV

19 %

(D) Solar Thermal

23 %

PLANT LOAD FACTOR (PLF)


49. Regulations 36, 68 and 78 of the RE Tariff Regulations specify the plant load factor for
Biomass, Biomass Gasifier and Biogas based renewable energy generating stations as
given in the table below which has been considered for determination of fixed charges
component of tariff.
Renewable Energy Projects
(A) Biomass
(a) During stabilization (6 months)
(b) During remaining period of the first year (after stabilization)
(c) Second year onwards

PLF

60 %
70 %
80 %

26

Renewable Energy Projects

PLF

(B) Biomass Gasifier

85 %

(C) Biogas

90 %

50. Regulation 49 of the RE Tariff Regulations stipulates the plant load factor for Nonfossil Fuel based Co-generation projects as under, computed on the basis of plant
availability for number of operating days considering the operations during crushing
season and off-season and load factor of 92%. The number of Operating days for
different States as specified in the Regulation 49(2) is as under:
States
Uttar Pradesh
and Andhra Pradesh
Tamil Nadu and
Maharashtra
Other States

Operating days

PLF

120 days (crushing)+ 60 days (off-season) = 180 days

45 %

180 days (crushing)+ 60 days (off-season) = 240 days

60 %

150 days (crushing) + 60 days (off-season) = 210 days

53 %

AUXILIARY POWER CONSUMPTION


51. Regulations 31, 37, 50, 64, 69 and 79 of the RE Tariff Regulations as amended from
time to time, stipulate the auxiliary power consumption factor as under which has
been considered for determination of tariff of the RE projects :

Renewable Energy Projects


Small Hydro

Auxiliary Consumption Factor


1%

Biomass
a) the project using water
cooled condenser

i. During first year of operation: 11%;


ii. From 2nd year onwards: 10%.

b) project using air cooled


condenser

i. During first year of operation: 13%;


ii. From 2nd year onwards: 12%.

27

Renewable Energy Projects

Auxiliary Consumption Factor

Non-fossil fuel co-generation

8.5 %

Solar Thermal

10 %

Biomass Gasifier

10 %

Biogas

12 %

STATION HEAT RATE


52. The Station Heat Rates (SHR) specified under Regulations 33, 38 (Third Amendment)
and 51 of the RE Tariff Regulations as amended from time to time for biomass and
non-fossil fuel based co-generation projects are as under:
Renewable Energy Projects

SHR
(kCal / kWh)

Biomass

a.4126 : for project using


travelling grate boilers;
b. 4063 : for project using
AFBC boilers.

Non-fossil fuel co-generation (for


power component)

3600

FUEL
(a) Fuel Mix
53. Sub-Regulation (1) of Regulation 40 of the RE Tariff Regulations stipulates that the
Biomass based power generating stations are to be designed in a way that it uses
different types of non-fossil fuels available within the vicinity of biomass power
project such as crop residues, agro-industrial residues, forest residues etc. and other
biomass fuels as may be approved by the Ministry of Non-Renewable Energy (MNRE).
Sub-Regulation (2) of the said Regulations stipulates that the biomass power
generating companies are to ensure fuel management plan to ensure adequate
availability of fuel to meet the respective project requirements.
54. Regulation 70 of the RE Tariff Regulations stipulates that the normative specific fuel
consumption shall be 1.25 kg per kWh for Biomass Gasifier based power generating
stations.

28

55. Regulation 81 of the RE Tariff Regulations stipulates that the normative specific fuel
consumption shall be 3 kg of substrate mix per kWh for Biogas based power
generating stations.
(b) Calorific value
56. Regulation 43 of the RE Tariff (Third Amendment) Regulations, provides the calorific
value of biomass fuel used for determination of tariff shall be at 3174 kCal/kg.
57. Regulation 52 of the of the RE Tariff Regulations provides the gross calorific value for
bagasse to be considered in case of non-fossil fuel co-generation projects is 2250
kCal/kg and for the use of biomass fuels other than bagasse, the calorific value as
specified above shall be applicable.
(c) Fuel cost
58. The Commission, in terms of Regulation 44 of the RE Tariff Regulations, has specified
the biomass fuel price applicable during the period 2012-13 and has specified fuel
price indexation mechanism, in case developer wishes to opt, for the remaining years
of the control period. The data for Pd and WPI, as per regulations, latest figures for
April, 2015 and April, 2014 corresponding to nth and (n-1)th year has been considered
while calculating the fuel price indexation for biomass and also non-fossil fuel based
co-generation power projects. The detailed computations of the fuel price indexation
mechanism and the determination of the biomass fuel prices for FY 2016-17 thereof,
has been enclosed as Appendix-7 to this order. Accordingly, the biomass fuel price
applicable for FY 2016-17is as under:
State

Biomass price
(Rs./tonne)

Andhra Pradesh

2807.74

Haryana

3195.86

Maharashtra

3268.62

Punjab

3342.60

Rajasthan

2789.54

Tamil Nadu

2761.64

Uttar Pradesh

2856.25

Other States

3003.01

29

59. The Commission, in terms of Regulation 53 of the RE Tariff Regulations, has specified
the price of bagasse applicable during the period 2012-13 and has specified fuel price
indexation mechanism, in case developer wishes to opt, for the remaining years of the
control period. The detailed computations of the fuel price indexation mechanism and
the determination of the bagasse fuel prices for FY 2016-17 thereof, has been
enclosed as Appendix-8 of this Order. The price of bagasse (for non-fossil fuel based
co-generation projects) applicable for FY 2016-17 shall be as in the table below;

State

Bagasse Price
(Rs./tonne)

Andhra Pradesh

1585.19

Haryana

2254.67

Maharashtra

2221.93

Punjab

1984.22

Tamil Nadu

1707.69

Uttar Pradesh

1768.33

Other States

1919.93

60. The Commission, in terms of Regulation 73 of the RE Tariff Regulations, has specified
the biomass fuel price during first year of the Control Period (i.e. FY 2012-13) as per
Regulation 44 and has specified fuel price indexation mechanism for the Biomass
Gasifier project developer. Accordingly, the biomass fuel price for the Biomass gasifier
based power project applicable for FY 2016-17 shall be the same as for the biomass
based power project (Rankine cycle) as mentioned above. The detailed computations
of the fuel price indexation mechanism and the determination of the biomass fuel
prices for FY 2016-17 thereof, has been enclosed as Appendix-9 of this Order.
61. The Commission, in terms of Regulation 82 of the RE Tariff Regulations, has specified
the feed stock price during first year of the Control Period (i.e. FY 2012-13) at Rs.
990/MT (net of any cost recovery from digester effluent) and has specified fuel price
indexation mechanism for the Biogas project developer. The detailed computations of
the fuel price indexation mechanism and the determination of the bagasse fuel prices
for FY 2016-17 thereof, has been enclosed as Appendix-10 of this Order. The price of
fuel applicable for the biogas based power plant for FY 2016-17 shall be at Rs.
1200.72/MT (net of any cost recovery from digester effluent).

30

62. In case of Biomass Power Projects, non-fossil fuel based co-generation projects,
Biomass Gasifier based power Projects and Biogas based power projects, variable
component of tariff is calculated based on the fuel cost for FY 2016-17. This variable
component will change each year based on whether a Renewable Energy Power
Project developer opts for fuel price indexation or escalation factor of 5%. Hence,
while calculating the total applicable tariff for Biomass Power Projects, non-fossil fuel
based co-generation projects, Biomass Gasifier based power Projects and Biogas
based power projects, levellisation of only fixed component is considered and the
variable component for the first year of operation (i.e. 2015-16) is specified.

Subsidy or incentive by the Central / State Government


63. Regulation 22 of the RE Tariff Regulations provides as under:
The Commission shall take into consideration any incentive or subsidy offered by
the Central or State Government, including accelerated depreciation benefit if
availed by the generating company, for the renewable energy power plants while
determining the tariff under these Regulations.
Provided that the following principles shall be considered for ascertaining income
tax benefit on account of accelerated depreciation, if availed, for the purpose of
tariff determination:
i) Assessment of benefit shall be based on normative capital cost, accelerated
depreciation rate as per relevant provisions under Income Tax Act and corporate
income tax rate.
ii) Capitalization of RE projects during second half of the fiscal year. Per unit benefit
shall be derived on levellised basis at discount factor equivalent to Post Tax
weighted average cost of capital.
64. In terms of the above regulation, for the projects availing the benefit of accelerated
depreciation as per applicable Income tax rate @ 34.61% (30% IT rate+ 12% surcharge
+3% Education cess) has been considered. For the purpose of determining net
depreciation benefits, depreciation @ 5.28% as per straight line method (Book
depreciation as per Companies Act, 1956) has been compared with depreciation as
per Income Tax rate i.e. 80% of the written down value method. Moreover, additional
20% depreciation in the initial year is proposed to be extended to new assets acquired
by power generation companies vide amendment in the section 32, sub-section (1)
clause (iia) of the Income Tax Act.
31

65. Depreciation for the first year has been calculated at the rate of 50% of accelerated
depreciation 80% and 50% of additional depreciation 20% (as project is capitalized
during the second half of the financial year as per proviso to Regulation 22). Income
tax benefits of accelerated depreciation and additional depreciation, has been worked
out as per normal tax rate on the net depreciation benefit. Per unit levellised
accelerated depreciation benefit has been computed considering the post-tax
weighted average cost of capital as discount factor. Accelerated depreciation benefit
has been computed as per existing provisions of Income Tax Act. The provisions
related to Accelerated Depreciation announced in Union Budget of India presented on
February 29, 2016 are not applied as the same are yet to be notified.
66. In the light of the discussion made in the preceding paragraphs, the generic tariffs of
the following RE projects for the financial year 2016-17 have been arrived at and are
as under:

32

Generic Tariff for RE Technologies for FY 2016-17

Particular

Levellised Total
Tariff
(FY 2016-17)

Benefit of
Accelerated
Depreciation
(if availed)

Net Levellised Tariff


(upon adjusting for
Accelerated Depreciation
benefit) (if availed)

(/kWh)

(/kWh)

(/kWh)

Wind Energy
Wind Zone -1 (CUF 20%)

6.60

0.71

5.89

Wind Zone -2 (CUF 22%)

6.00

0.65

5.36

Wind Zone -3 (CUF 25%)

5.28

0.57

4.71

Wind Zone -4 (CUF 30%)

4.40

0.47

3.93

Wind Zone -5 (CUF 32%)

4.13

0.44

3.68

Small Hydro Power Project


HP, Uttarakhand and NE
States (Below 5MW)

4.70

HP, Uttarakhand and NE


States (5MW to 25 MW)

3.99

Other States
(Below 5 MW)

5.54

Other States
(5 MW to 25 MW)

4.69

Variable
Net Levellised Tariff
Applicable
Benefit of
Cost
(upon adjusting for
Levellised
Tariff Rate Accelerated
State
(FY
Accelerated
Fixed Cost
(FY 2016- Depreciation
2016Depreciation
17)
(if availed)
17)
benefit) (if availed)
(/kWh)
(/kWh) (/kWh)
(/kWh)
(/kWh)
Biomass Power Projects [other than Rice Straw and Juliflora (plantation) based project]
with Water Cooled Condenser and travelling grate boiler
Andhra
3.07
4.10
7.17
0.18
6.99
Pradesh
Haryana
3.13
4.67
7.79
0.18
7.61
Maharashtra
3.14
4.77
7.91
0.18
7.73
Punjab
3.15
4.88
8.03
0.18
7.85

33

State

Rajasthan
Tamil Nadu
Uttar
Pradesh
Others

State

(/kWh)
3.07
3.07

Variable
Cost
(FY
201617)
(/kWh)
4.07
4.03

3.08

4.17

7.25

0.18

7.07

3.10

4.39

7.49

0.18

7.31

Levellised
Fixed Cost

Applicable
Tariff Rate
(FY 201617)

Benefit of
Accelerated
Depreciation
(if availed)

(/kWh)
7.14
7.10

(/kWh)
0.18
0.18

Net Levellised Tariff


(upon adjusting for
Accelerated
Depreciation
benefit) (if availed)
(/kWh)
6.97
6.92

Levellised
Fixed Cost

Variable Cost
(FY 2016-17)

(/kWh)

(/kWh)

Net Levellised
Applicable
Benefit of
Tariff
Tariff Rate Accelerated (upon adjusting for
(FY 2016- Depreciation
Accelerated
17)
(if availed)
Depreciation
benefit) (if availed)
(/kWh)

(/kWh)

(/kWh)

Biomass Power Projects [other than Rice Straw and Juliflora (plantation) based project] with
Air Cooled Condenser and travelling grate boiler
Andhra Pradesh

3.25

4.20

7.45

0.20

7.25

Haryana

3.31

4.78

8.08

0.20

7.89

Maharashtra

3.32

4.88

8.20

0.20

8.00

Punjab

3.33

4.99

8.32

0.20

8.13

Rajasthan

3.25

4.17

7.42

0.20

7.22

Tamil Nadu

3.25

4.13

7.37

0.20

7.18

Uttar Pradesh

3.26

4.27

7.53

0.20

7.33

Others

3.28

4.49

7.77

0.20

7.57

34

State

Levellised
Fixed Cost

Variable Cost
(FY 2016-17)

(/kWh)

(/kWh)

Net Levellised
Applicable
Benefit of
Tariff
Tariff Rate Accelerated (upon adjusting for
(FY 2016- Depreciation
Accelerated
17)
(if availed)
Depreciation
benefit) (if availed)
(/kWh)

(/kWh)

(/kWh)

Biomass Power Projects [Rice Straw and Juliflora (plantation) based project] with Water
Cooled Condenser and travelling grate boiler
Andhra Pradesh

3.21

4.10

7.31

0.20

7.11

Haryana

3.26

4.67

7.93

0.20

7.73

Maharashtra

3.27

4.77

8.05

0.20

7.85

Punjab

3.28

4.88

8.17

0.20

7.97

Rajasthan

3.21

4.07

7.28

0.20

7.08

Tamil Nadu

3.20

4.03

7.24

0.20

7.04

Uttar Pradesh

3.22

4.17

7.39

0.20

7.19

Others

3.24

4.39

7.62

0.20

7.43

State

Levellised
Fixed Cost

Variable Cost
(FY 2016-17)

(/kWh)

(/kWh)

Net Levellised
Applicable
Benefit of
Tariff
Tariff Rate Accelerated (upon adjusting for
(FY 2016- Depreciation
Accelerated
17)
(if availed)
Depreciation
benefit) (if availed)
(/kWh)

(/kWh)

(/kWh)

Biomass Power Projects [Rice Straw and Juliflora (plantation) based project] with Air Cooled
Condenser and travelling grate boiler
Andhra Pradesh

3.40

4.20

7.59

0.22

7.38

Haryana

3.45

4.78

8.23

0.22

8.01

Maharashtra

3.46

4.88

8.34

0.22

8.13

Punjab

3.47

4.99

8.47

0.22

8.25

Rajasthan

3.39

4.17

7.56

0.22

7.35

35

Net Levellised
Applicable
Benefit of
Tariff
Tariff Rate Accelerated (upon adjusting for
(FY 2016- Depreciation
Accelerated
17)
(if availed)
Depreciation
benefit) (if availed)

Levellised
Fixed Cost

Variable Cost
(FY 2016-17)

(/kWh)

(/kWh)

(/kWh)

(/kWh)

(/kWh)

Tamil Nadu

3.39

4.13

7.52

0.22

7.30

Uttar Pradesh

3.40

4.27

7.67

0.22

7.46

Others

3.42

4.49

7.91

0.22

7.70

State

Variable
Net Levellised Tariff
Applicable
Benefit of
Cost
(upon adjusting for
Levellised
Tariff Rate Accelerated
State
(FY
Accelerated
Fixed Cost
(FY 2016- Depreciation
2016Depreciation
17)
(if availed)
17)
benefit) (if availed)
(/kWh)
(/kWh) (/kWh)
(/kWh)
(/kWh)
Biomass Power Projects [other than Rice Straw and Juliflora (plantation) based project]
with Water Cooled Condenser and AFBC boiler
Andhra
3.07
4.04
7.10
0.18
6.92
Pradesh
Haryana
3.12
4.60
7.72
0.18
7.54
Maharashtra
3.13
4.70
7.83
0.18
7.65
Punjab
3.14
4.81
7.95
0.18
7.77
Rajasthan
3.06
4.01
7.08
0.18
6.90
Tamil Nadu
3.06
3.97
7.03
0.18
6.85
Uttar
3.07
4.11
7.18
0.18
7.00
Pradesh
Others
3.09
4.32
7.41
0.18
7.23

State

Levellised
Fixed Cost

Variable Cost
(FY 2016-17)

(/kWh)

(/kWh)

Net Levellised
Applicable
Benefit of
Tariff
Tariff Rate Accelerated (upon adjusting for
(FY 2016- Depreciation
Accelerated
17)
(if availed)
Depreciation
benefit) (if availed)
(/kWh)

(/kWh)

(/kWh)

Biomass Power Projects [other than Rice Straw and Juliflora (plantation) based project] with
Air Cooled Condenser and AFBC boiler

36

Net Levellised
Applicable
Benefit of
Tariff
Tariff Rate Accelerated (upon adjusting for
(FY 2016- Depreciation
Accelerated
17)
(if availed)
Depreciation
benefit) (if availed)

Levellised
Fixed Cost

Variable Cost
(FY 2016-17)

(/kWh)

(/kWh)

(/kWh)

(/kWh)

(/kWh)

3.25

4.13

7.38

0.20

7.18

Haryana

3.30

4.70

8.00

0.20

7.81

Maharashtra

3.31

4.81

8.12

0.20

7.92

Punjab

3.32

4.92

8.24

0.20

8.04

Rajasthan

3.25

4.10

7.35

0.20

7.15

Tamil Nadu

3.24

4.06

7.30

0.20

7.11

Uttar Pradesh

3.25

4.20

7.46

0.20

7.26

Others

3.27

4.42

7.69

0.20

7.50

State

Andhra Pradesh

State

Levellised
Fixed Cost

Variable Cost
(FY 2016-17)

(/kWh)

(/kWh)

Net Levellised
Applicable
Benefit of
Tariff
Tariff Rate Accelerated (upon adjusting for
(FY 2016- Depreciation
Accelerated
17)
(if availed)
Depreciation
benefit) (if availed)
(/kWh)

(/kWh)

(/kWh)

Biomass Power Projects [Rice Straw and Juliflora (plantation) based project] with Water
Cooled Condenser and AFBC boiler
Andhra Pradesh

3.20

4.04

7.24

0.20

7.05

Haryana

3.26

4.60

7.85

0.20

7.66

Maharashtra

3.27

4.70

7.97

0.20

7.77

Punjab

3.28

4.81

8.08

0.20

7.89

Rajasthan

3.20

4.01

7.21

0.20

7.02

Tamil Nadu

3.20

3.97

7.17

0.20

6.97

Uttar Pradesh

3.21

4.11

7.32

0.20

7.12

37

State

Others

State

Net Levellised
Applicable
Benefit of
Tariff
Tariff Rate Accelerated (upon adjusting for
(FY 2016- Depreciation
Accelerated
17)
(if availed)
Depreciation
benefit) (if availed)

Levellised
Fixed Cost

Variable Cost
(FY 2016-17)

(/kWh)

(/kWh)

(/kWh)

(/kWh)

(/kWh)

3.23

4.32

7.55

0.20

7.35

Levellised
Fixed Cost

Variable Cost
(FY 2016-17)

(/kWh)

(/kWh)

Net Levellised
Applicable
Benefit of
Tariff
Tariff Rate Accelerated (upon adjusting for
(FY 2016- Depreciation
Accelerated
17)
(if availed)
Depreciation
benefit) (if availed)
(/kWh)

(/kWh)

(/kWh)

Biomass Power Projects [Rice Straw and Juliflora (plantation) based project] with Air Cooled
Condenser and AFBC boiler
Andhra Pradesh

3.39

4.13

7.52

0.22

7.31

Haryana

3.44

4.70

8.15

0.22

7.93

Maharashtra

3.45

4.81

8.26

0.22

8.05

Punjab

3.46

4.92

8.38

0.22

8.17

Rajasthan

3.39

4.10

7.49

0.22

7.28

Tamil Nadu

3.38

4.06

7.45

0.22

7.23

Uttar Pradesh

3.40

4.20

7.60

0.22

7.38

Others

3.42

4.42

7.84

0.22

7.62

38

State

Levellise
d Fixed
Cost

Variable Cost
(FY 2016-17)

Applicable
Tariff Rate
(FY 2016-17)

Benefit of
Accelerated
Depreciation
(if availed)

Net
Levellised
Tariff
(upon
adjusting
for
Accelerated
Depreciatio
n benefit)
(if availed)

(/kWh)

(/kWh)

(/kWh)

(/kWh)

(/kWh)

Bagasse Based Co-generation Project


Andhra Pradesh

3.17

2.77

5.94

0.25

5.70

Haryana

2.84

3.94

6.79

0.21

6.58

Maharashtra

2.55

3.89

6.43

0.18

6.25

Punjab

2.80

3.47

6.27

0.21

6.06

Tamil Nadu

2.46

2.99

5.45

0.18

5.27

Uttar Pradesh

3.20

3.09

6.29

0.25

6.05

2.79

3.36

6.14

0.21

5.94

Others

Solar PV and Solar Thermal

Levellised Total Tariff


(FY 2016-17)

Benefit of
Accelerated
Depreciation
(if availed)

Net Levellised
Tariff
(upon adjusting
for Accelerated
Depreciation
benefit) (if
availed)

(/kWh)

(/kWh)

(/kWh)

Solar PV

5.68

0.60

5.08

Solar Thermal

12.07

1.25

10.82

Particular

39

State

Applicable
Benefit of
Variable
Levellised
Tariff Rate Accelerated
Cost
Fixed Cost
(FY 2016- Depreciation
(FY 2016-17)
17)
(if availed)

(/kWh)

(/kWh)

(/kWh)

(/kWh)

Net Levellised
Tariff
(upon adjusting
for Accelerated
Depreciation
benefit) (if
availed)
(/kWh)

Biomass Gasifier Power Project


Andhra Pradesh

2.61

3.90

6.51

0.13

6.38

Haryana

2.67

4.44

7.10

0.13

6.97

Maharashtra

2.68

4.54

7.22

0.13

7.08

Punjab

2.69

4.64

7.33

0.13

7.19

Rajasthan

2.61

3.87

6.49

0.13

6.35

Tamil Nadu

2.61

3.84

6.44

0.13

6.31

Uttar Pradesh

2.62

3.97

6.59

0.13

6.45

Others

2.64

4.17

6.81

0.13

6.68

Biogas based Generation


Biogas

4.09

3.59

7.68

0.26

7.42

40

1. The detailed computations for the generic tariff for various RE technologies have
been enclosed to this Order as per the details given hereunder:
S.No

Renewable Energy Projects

Wind Power Projects

C.1

C.2

Annexure

Wind Zone-I

Annexure 1A

Wind Zone-II

Annexure 1B

Wind Zone III

Annexure 1C

Wind Zone IV

Annexure 1D

Wind Zone V

Annexure 1E

Small Hydro Power Projects


Projects Less than 5 MW for HP, Uttarakhand and NE States

Annexure 2A

Projects between 5 MW and 25 MW for HP, Uttarakhand and NE


States

Annexure 2B

Projects less than 5 MW for other States

Annexure 2C

Projects between 5 MW and 25 MW for other states

Annexure 2D

Biomass Power Projects [other than Rice Straw and Juliflora (plantation) based
project] with Water Cooled Condenser and using Travelling Grate boiler
Andhra Pradesh

Annexure 3.1A

Haryana

Annexure 3.1B

Maharashtra

Annexure 3.1C

Punjab

Annexure 3.1D

Rajasthan

Annexure 3.1E

Tamil Nadu

Annexure 3.1F

Uttar Pradesh

Annexure 3.1G

Others

Annexure 3.1H

Biomass Power Projects [other than Rice Straw and Juliflora (plantation) based
project] with Air Cooled Condenser and using Travelling Grate boiler
Andhra Pradesh

Annexure 3.2A

Haryana

Annexure 3.2B

Maharashtra

Annexure 3.2C

Punjab

Annexure 3.2D
41

S.No

C.3

C.4

C.5

Renewable Energy Projects

Annexure

Rajasthan

Annexure 3.2E

Tamil Nadu

Annexure 3.2F

Uttar Pradesh

Annexure 3.2G

Others

Annexure 3.2H

Biomass Power Projects [Rice Straw and Juliflora (plantation) based project] with
Water Cooled Condenser and using Travelling Grate boiler
Andhra Pradesh

Annexure 3.3A

Haryana

Annexure 3.3B

Maharashtra

Annexure 3.3C

Punjab

Annexure 3.3D

Rajasthan

Annexure 3.3E

Tamil Nadu

Annexure 3.3F

Uttar Pradesh

Annexure 3.3G

Others

Annexure 3.3H

Biomass Power Projects [Rice Straw and Juliflora (plantation) based project] with
Air Cooled Condenser and using Travelling Grate boiler
Andhra Pradesh

Annexure 3.4A

Haryana

Annexure 3.4B

Maharashtra

Annexure 3.4C

Punjab

Annexure 3.4D

Rajasthan

Annexure 3.4E

Tamil Nadu

Annexure 3.4F

Uttar Pradesh

Annexure 3.4G

Others

Annexure 3.4H

Biomass Power Projects [other than Rice Straw and Juliflora (plantation) based
project] with Water Cooled Condenser and using AFBC boiler
Andhra Pradesh

Annexure 3.5A

Haryana

Annexure 3.5B

Maharashtra

Annexure 3.5C

Punjab

Annexure 3.5D

Rajasthan

Annexure 3.5E
42

S.No

C.6

C.7

C.8

Renewable Energy Projects

Annexure

Tamil Nadu

Annexure 3.5F

Uttar Pradesh

Annexure 3.5G

Others

Annexure 3.5H

Biomass Power Projects [other than Rice Straw and Juliflora (plantation) based
project] with Air Cooled Condenser and using AFBC boiler
Andhra Pradesh

Annexure 3.6A

Haryana

Annexure 3.6B

Maharashtra

Annexure 3.6C

Punjab

Annexure 3.6D

Rajasthan

Annexure 3.6E

Tamil Nadu

Annexure 3.6F

Uttar Pradesh

Annexure 3.6G

Others

Annexure 3.6H

Biomass Power Projects [Rice Straw and Juliflora (plantation) based project] with
Water Cooled Condenser and using AFBC boiler
Andhra Pradesh

Annexure 3.7A

Haryana

Annexure 3.7B

Maharashtra

Annexure 3.7C

Punjab

Annexure 3.7D

Rajasthan

Annexure 3.7E

Tamil Nadu

Annexure 3.7F

Uttar Pradesh

Annexure 3.7G

Others

Annexure 3.7H

Biomass Power Projects [Rice Straw and Juliflora (plantation) based project] with
Air Cooled Condenser and using AFBC boiler
Andhra Pradesh

Annexure 3.8A

Haryana

Annexure 3.8B

Maharashtra

Annexure 3.8C

Punjab

Annexure 3.8D

Rajasthan

Annexure 3.8E

Tamil Nadu

Annexure 3.8F
43

S.No

Renewable Energy Projects

Annexure

Uttar Pradesh

Annexure 3.8G

Others

Annexure 3.8H

Non-Fossil Fuel Based Cogeneration


Andhra Pradesh

Annexure 4A

Haryana

Annexure 4B

Maharashtra

Annexure 4C

Punjab

Annexure 4D

Tamil Nadu

Annexure 4E

Uttar Pradesh

Annexure 4F

Others

Annexure 4G

Solar Projects
Solar PV Projects

Annexure 5A

Solar Thermal Projects

Annexure 6A

Biomass Gasifier Power Projects


Andhra Pradesh

Annexure 7A

Haryana

Annexure 7B

Maharashtra

Annexure 7C

Punjab

Annexure 7D

Rajasthan

Annexure 7E

Tamil Nadu

Annexure 7F

Uttar Pradesh

Annexure 7G

Others

Annexure 7H

Biogas based Power Projects

Annexure 8A

Sd/(M.K.Iyer)
Member

Sd/(A.S. Bakshi)
Member

Sd/(A. K. Singhal)
Member

Sd/(Gireesh B. Pradhan)
Chairperson

New Delhi
Dated the 29th April, 2016

44

Appendix-1
Capital cost of Indexation for Wind Power Projects (FY 2016-17)
Indexation Formulation
CC( n ) = P&M (n) * [1 + F1 + F2 + F3]
d (n) = (a * (SI(n-1)/SI(0))-1) +b* (EI(n-1)/EI(0))-1)) /
(a+b) P&M(n) =P&M(0)*(1+ d (n))
Month/Year
January
February
March
April
May
June
July
August
September
October
November
December
Average
Parameters
CC(0) ( L/MW)
P&M(0) ( L/MW)
d(n)
P&M(n) ( L/MW)
CC(n) ( L/MW)

Electrical Machinery
2015
2011
139.00
125.10
139.00
125.10
138.20
126.40
137.90
127.20
137.90
127.60
138.20
128.00
138.30
128.70
138.40
129.20
138.40
130.90
138.30
130.60
138.30
130.80
131.00
138.355
128.383

Steel
2015
129.40
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.036

Description
Capital Cost for the Base Year
Plant & Machinery Cost for the Base Year
Capital Cost escalation Factor
Plant & Machinery Cost for the nth Year (FY 2016-17)
Capital Cost for the nth Year (FY 2016-17)

2011
118.60
113.00
113.00
113.00
113.00
119.60
126.20
126.20
126.20
126.20
126.20
126.20
120.617
Value
575
460
7.792%
495.85
619.81

Source of WPI (Steel and Electrical Machinery): Office of Economic Advisor, Ministry of
Commerce and Industry (www.eaindustry.nic.in)

45

Appendix-2
Capital cost of Indexation for Small Hydro Power Projects (FY 2016-17)
Indexation Formulation
CC( n ) = P&M (n) * [1 + F1 + F2 + F3]
d (n) = (a * (SI(n-1)/SI(0))-1) +b* (EI(n-1)/EI(0))-1)) / (a+b)
P&M(n) =P&M(0)*(1+ d (n))
Variable

Description

Value

Weightage for Steel Index

0.6

Weightage for Electrical Machinery Index

0.4

F1

Factor for Land and Civil Work

0.16

F2

Factor for Erection and Commissioning

0.1

F3

Factor for IDC and Financing

0.14

Month/Year
January
February
March
April
May
June
July
August
September
October
November
December
Average

Electrical Machinery
2015
2011
139.00
125.10
139.00
125.10
138.20
126.40
137.90
127.20
137.90
127.60
138.20
128.00
138.30
128.70
138.40
129.20
138.40
130.90
138.30
130.60
138.30
130.80
131.00
138.355
128.383

Steel
2015
129.40
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.036

HP/Uttarakhand/NE
SHP <5
5 MW-25
MW
MW
770
700

2011
118.60
113.00
113.00
113.00
113.00
119.60
126.20
126.20
126.20
126.20
126.20
126.20
120.617
Other States
SHP<5 5 MW-25
MW
MW
600
550

Parameters
Description
CC(0) (L/MW) Capital Cost for the Base Year
P&M(0) (
Plant & Machinery Cost for the
L/MW)
Base Year
550
500
428.57
d(n)
Capital Cost escalation Factor
7.792%
7.792%
7.792%
P&M(n) (
Plant & Machinery Cost for the
L/MW)
nth Year (FY 16-17)
592.86
538.96
461.97
CC(n) (
Capital Cost for the nth Year (FY
L/MW)
2016-17)
830.00
754.55
646.75
Source of WPI (Steel and Electrical Machinery): Office of Economic Advisor, Ministry of
Commerce and Industry (www.eaindustry.nic.in)

392.86
7.792%
423.47
592.86

46

Appendix 3
Capital cost of Indexation for Biomass Power Projects (FY 2016-17)
Indexation Formulation
CC( n ) = P&M (n) * [1 + F1 + F2 + F3]
d (n) = (a * (SI(n-1)/SI(0))-1) +b* (EI(n-1)/EI(0))-1)) / (a+b)
P&M(n) =P&M(0)*(1+ d (n))
Variable

Description

Value

Weightage for Steel Index

0.7

Weightage for Electrical Machinery Index

0.3

F1

Factor for Land and Civil Work

0.1

F2

Factor for Erection and Commissioning

0.09

F3

Factor for IDC and Financing

0.14

Month/Year
January
February
March
April
May
June
July
August
September
October
November
December
Average

Parameters

Electrical Machinery
2015
2011
139.00
125.10
139.00
125.10
138.20
126.40
137.90
127.20
137.90
127.60
138.20
128.00
138.30
128.70
138.40
129.20
138.40
130.90
138.30
130.60
138.30
130.80
131.00
138.355
128.383

Description

Steel
2015
129.40
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.036

2011
118.60
113.00
113.00
113.00
113.00
119.60
126.20
126.20
126.20
126.20
126.20
126.20
120.617

Biomass Power Projects (Rankine


Cycle)
a*
b*
c*
d*

CC(0) (
L/MW)
Capital Cost for the Base Year : (FY 13-14) 540.00
P&M(0) (
Plant & Machinery Cost for the Base
L/MW)
Year: (FY 13- 14)
406.02
d(n)
Capital Cost escalation Factor
3.52%
P&M(n) (
Plant & Machinery Cost for the nth Year
L/MW)
(FY 16-17)
420.33
CC(n) (
L/MW)
Capital Cost for the nth Year (FY 2016-17) 559.03
Source of WPI (Steel and Electrical Machinery): Office of Economic
Advisor, Ministry of Commerce and Industry (www.eaindustry.nic.in)

580.00

590.00

630.00

436.09
3.52%

443.61
3.52%

473.68
3.52%

451.46

459.24

490.38

600.44

610.80

652.20

47

* a. Project [other than rice straw and juliflora (plantation) based project] with water cooled
condenser;
*b. Project [other than rice straw and Juliflora (plantation) based project] with air cooled
condenser;
*c. For rice straw and juliflora (plantation) based project with water cooled condenser;
*d. For rice straw and juliflora (plantation) based project with air cooled condenser.

48

Appendix-4
Capital cost of Indexation for Non-fossil fuel based Cogeneration Power Projects (FY 16-17)
Indexation Formulation
CC( n ) = P&M (n) * [1 + F1 + F2 + F3]
d (n) = (a * (SI(n-1)/SI(0))-1) +b* (EI(n-1)/EI(0))-1)) /
(a+b) P&M(n) =P&M(0)*(1+ d (n))
Variable

Description

Value

Weightage for Steel Index

0.70

Weightage for Electrical Machinery Index

0.30

F1

Factor for Land and Civil Work

0.10

F2

Factor for Erection and Commissioning

0.09

F3

Factor for IDC and Financing

0.14

Month/Year
January
February
March
April
May
June
July
August
September
October
November
December
Average

Electrical Machinery
2015
2011
139.00
125.10
139.00
125.10
138.20
126.40
137.90
127.20
137.90
127.60
138.20
128.00
138.30
128.70
138.40
129.20
138.40
130.90
138.30
130.60
138.30
130.80
131.00
138.355
128.383

Steel
2015
129.40
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.036

2011
118.60
113.00
113.00
113.00
113.00
119.60
126.20
126.20
126.20
126.20
126.20
126.20
120.617

Parameters

Description

Value

CC(0) ( L/MW)

Capital Cost for the Base Year

420.00

P&M(0)( L/MW)

Plant & Machinery Cost for the Base Year

315.79

d(n)

Capital Cost escalation Factor

7.7

P&M(n) ( L/MW)

Plant & Machinery Cost for the nth Year (FY 2016-17)

340.41

CC(n)( L/MW)

Capital Cost for the nth Year (FY 2016-17)

452.75

Source of WPI (Steel and Electrical Machinery): Office of Economic Advisor, Ministry
of Commerce and Industry (www.eaindustry.nic.in)

49

Appendix-5
Capital cost of Indexation for Biomass Gasifier Power Projects (FY 2016-17)
Indexation Formulation
CC( n ) = P&M (n) * [1 + F1 + F2 + F3]
d (n) = (a * (SI(n-1)/SI(0))-1) +b* (EI(n-1)/EI(0))-1)) /
(a+b) P&M(n) =P&M(0)*(1+ d (n))
Variable

Description

Value

Weightage for Steel Index

0.70

Weightage for Electrical Machinery Index

0.30

F1

Factor for Land and Civil Work

0.10

F2

Factor for Erection and Commissioning

0.09

F3

Factor for IDC and Financing

0.14

Month/Year
January
February
March
April
May
June
July
August
September
October
November
December
Average

Parameters
CC(0)( L/MW)
P&M(0)( L/MW)
d(n)
P&M(n)( L/MW)
CC(n)( L/MW)

Electrical Machinery
2015
2011
139.00
125.10
139.00
125.10
138.20
126.40
137.90
127.20
137.90
127.60
138.20
128.00
138.30
128.70
138.40
129.20
138.40
130.90
138.30
130.60
138.30
130.80
131.00
138.355
128.383

Steel
2015
129.40
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.036

2011
118.60
113.00
113.00
113.00
113.00
119.60
126.20
126.20
126.20
126.20
126.20
126.20
120.617

Description

Value

Capital Cost for the Base Year

550.00

Plant & Machinery Cost for the Base Year

413.53

Capital Cost escalation Factor

7.797%

Plant & Machinery Cost for the nth Year (FY 2016-17)

445.78

Capital Cost for the nth Year (FY 2016-17)

592.88

Source of WPI (Steel and Electrical Machinery): Office of Economic Advisor, Ministry
of Commerce and Industry (www.eaindustry.nic.in)

50

Appendix-6
Capital cost of Indexation for Biogas based Power Projects (FY 2016-17)
Indexation Formulation
CC( n ) = P&M (n) * [1 + F1 + F2 + F3]
d (n) = (a * (SI(n-1)/SI(0))-1) +b* (EI(n-1)/EI(0))-1)) /
(a+b) P&M(n) =P&M(0)*(1+ d (n))
Variable

Description

Value

Weightage for Steel Index

0.70

Weightage for Electrical Machinery Index

0.30

F1

Factor for Land and Civil Work

0.10

F2

Factor for Erection and Commissioning

0.09

F3

Factor for IDC and Financing

0.14

Month/Year
January
February
March
April
May
June
July
August
September
October
November
December
Average

Parameters
CC(0) ( L/MW)
P&M(0)( L/MW)
d(n)
P&M(n)( L/MW)
CC(n)( L/MW)

Electrical Machinery
2015
2011
139.00
125.10
139.00
125.10
138.20
126.40
137.90
127.20
137.90
127.60
138.20
128.00
138.30
128.70
138.40
129.20
138.40
130.90
138.30
130.60
138.30
130.80
131.00
138.355
128.383

Steel
2015
129.40
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.10
130.036

2011
118.60
113.00
113.00
113.00
113.00
119.60
126.20
126.20
126.20
126.20
126.20
126.20
120.617

Description

Value

Capital Cost for the Base Year

1100.00

Plant & Machinery Cost for the Base Year

827.07

Capital Cost escalation Factor

7.797%

Plant & Machinery Cost for the nth Year (FY 2016-17)

891.55

Capital Cost for the nth Year (FY 2016-17)

1185.76

Source of WPI (Steel and Electrical Machinery): Office of Economic Advisor, Ministry
of Commerce and Industry (www.eaindustry.nic.in)

51

Appendix-7
Biomass Fuel Price across States for FY 2016-17
As per fuel price Index Mechanism outlined under Regulation 45 and the availability of
required information
Fuel Price indexation for Biomass Power Projects (FY2016-17)
Indexation Formulation:
P(n) = P(n-1)*{a*(WPI(n)/WPI(n-1))+b*(1+IRC(n-1))+c*(Pd(n)/Pd(n-1))}
Parameter
WPI n-1
WPI n
IRC n-1
Pd n-1
Pd n
a
b
c

State
Andhra
Pradesh
Haryana
Maharashtra
Punjab
Rajasthan
Tamil Nadu
Uttar Pradesh
Other States

Value
180.800
176.400
-1.91%
223.267
191.163
0.2
0.6
0.2
Biomass price
(Rs/MT)
2015-16

Biomass price
(Rs/MT)
2016-17

2940.31
3346.75
3422.95
3500.42
2921.25
2892.03
2991.10
3144.80

2807.74
3195.86
3268.62
3342.60
2789.54
2761.64
2856.25
3003.01

Note:
1. The Calculation of WPI (n) and WPI (n-1) is based on the figures available on April 2015 and
April 2014 respectively.
2.

The Calculation of Pd (n) is based on the weighted average of the WPI (Price of HSD) figures
available for the months from April 2015 to November2015.

3.

The Calculation of Pd (n-1) is based on the weighted average of the WPI (Price of HSD)
figures available for the months from April 2014 to March 2015.

52

4.

The Calculation of Pd (n) and Pd (n-1) are shown as under:


WPI (Price of HSD) change as 2014-15 and 2015-16
Month
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Average

2015-16
195.60
209.60
212.00
200.80
179.40
174.00
176.50
181.40

191.163

2014-15
230.10
232.30
235.20
238.80
240.40
242.00
239.20
218.10
210.80
200.70
188.40
203.20
223.267

Source of WPI and WPI (Price of HSD): Office of Economic Advisor, Ministry
of Commerce and Industry (www.eaindustry.nic.in),
From

To

4/1/2015

9/30/2015

10/1/2015

3/31/2016

IRC
3.83%
-7.65%
Total

Days
183

Average IRC
-1.91%

183
366

Source of IRC: CERC (www.cercind.gov.in)

53

Appendix-8
Bagasse Fuel Price across States for FY 2016-17
As per fuel price Index Mechanism outlined under Regulation 54 and the availability
of required information comparison to be 2015-16 and projection for 2016-17
Fuel Price indexation for Bagasse Power Projects (FY2016-17)
Indexation Formulation
Pn = Pn-1*{a*(WPIn/WPIn-1)+b*(1+IRCn-1)+c*(Pdn/Pdn-1)}
Parameter
WPI n-1
WPI n
IRC n-1
Pd n-1
Pd n
a
b
c

State
Andhra
Pradesh
Haryana
Maharashtra
Punjab
Tamil Nadu
Uttar Pradesh
Other States

Value
180.800
176.400
-1.91%
223.267
191.163
0.2
0.6
0.2
Biomass price
(Rs/MT) 2015-16

Biomass price
(Rs/MT) 2016-17

1660.04
2361.13

1585.19
2254.67

2326.84
2077.90
1788.32
1851.82
2010.58

2221.93
1984.22
1707.69
1768.33
1919.93

Note:
1. The Calculation of WPI (n) and WPI (n-1) is based on the figures available on
April 2015 and April 2014 respectively.
2.
The Calculation of Pd (n) is based on the weighted average of the WPI (Price
of HSD) figures available for the months from April 2015 to November 2015.
3.
The Calculation of Pd (n-1) is based on the weighted average of the WPI
(Price of HSD) figures available for the months from April 2014 to March 2015.

54

4.

The Calculation of Pd (n) and Pd (n-1) are shown as under:


Month
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Average

2015-16
195.60
209.60
212.00
200.80
179.40
174.00
176.50
181.40

2014-15
230.10
232.30
235.20
238.80
240.40
242.00
239.20
218.10
210.80
200.70
188.40
203.20
223.267

191.163

Source of WPI and WPI (Price of HSD): Office of Economic Advisor, Ministry of Commerce
and Industry (www.eaindustry.nic.in),
From

To

4/1/2015

9/30/2015

10/1/2015

3/31/2016

IRC
3.83%
-7.65%
Total

Days
183

Average IRC
-1.91%

183
366

Source of IRC: CERC (www.cercind.gov.in)

55

Appendix-9
Biomass Gasifier Fuel Price across States for FY 2016-17
As per fuel price Index Mechanism outlined under Regulation 74 and the availability
of required information
Fuel Price indexation for Biomass gasifier Power Projects (FY2016-17)
Indexation Formulation
Pn = Pn-1*{a*(WPIn/WPIn-1)+b*(1+IRCn-1)+c*(Pdn/Pdn-1)}
Parameter
WPI n-1
WPI n
IRC n-1
Pd n-1
Pd n
A
B
C

State
Andhra
Pradesh
Haryana
Maharashtra
Punjab
Rajasthan
Tamil Nadu
Uttar Pradesh
Other States

Value
180.800
176.400
-1.91%
223.267
191.163
0.2
0.6
0.2

Biomass Price
(Rs/MT) 2015-16

Biomass Price
(Rs/MT) 201617

2940.31
3346.75
3422.95
3500.42
2921.25
2892.03
2991.10
3144.80

2807.74
3195.86
3268.62
3342.60
2789.54
2761.64
2856.25
3003.01

Note:
1. The Calculation of WPIn and WPIn-1 is based on the figures available on April
2015 and April 2014 respectively.
2.

The Calculation of Pdn is based on the weighted average of the WPI (Price of
HSD) figures available for the months from April 2015 to November2015.

3.

The Calculation of Pdn-1 is based on the weighted average of the WPI (Price of
HSD) figures available for the months from April 2014 to March 2015.

56

4.

The Calculation of Pd (n) and Pd (n-1) are shown as under:


WPI (Price of HSD)
Month
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Average

2015-16
195.60
209.60
212.00
200.80
179.40
174.00
176.50
181.40

2014-15
230.10
232.30
235.20
238.80
240.40
242.00
239.20
218.10
210.80
200.70
188.40
203.20
223.267

191.163

Source of WPI and WPI (Price of HSD): Office of Economic Advisor,


Ministry of Commerce and Industry (www.eaindustry.nic.in),
From

To

4/1/2015

9/30/2015

10/1/2015

3/31/2016

IRC
3.83%
-7.65%
Total

Days
183

Average IRC
-1.91%

183
366

Source of IRC: CERC (www.cercind.gov.in)

57

Appendix-10
Fuel Price for Biogas based power plant for FY 2016-17
As per fuel price Index Mechanism outlined under Regulation 83 and the availability
of required information
Fuel Price indexation for Biogas based power projects (FY2016-17)
Indexation Formulation
Pn = Pn-1*{a*(WPIn/WPIn-1)+b*(1+IRCn-1)+c*(Pdn/Pdn-1)}
Parameter
WPI n-1
WPI n
IRC n-1
Pd n-1
Pd n
A
B
C

Biogas price
(Rs/MT) 2015-16
1257.41

Value
180.800
176.400
-1.91%
223.267
191.163
0.2
0.6
0.2

Biogas price
(Rs/MT) 2016-17
1200.72

Note:
1.

The Calculation of WPI (n) and WPI (n-1) is based on the figures available
on April 2014 and April 2015 respectively.

2.

The Calculation of Pdn is based on the weighted average of the WPI


(Price of HSD) figures available for the months from April 2015 to
November 2015.

3.

The Calculation of Pdn-1 is based on the weighted average of the WPI


(Price of HSD) figures available for the months from April 2014 to March
2015.

58

The Calculation of Pdn and Pdn-1 are shown as under:


WPI (Price of HSD)
Month
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Average

2015-16
195.60
209.60
212.00
200.80
179.40
174.00
176.50
181.40

2014-15
230.10
232.30
235.20
238.80
240.40
242.00
239.20
218.10
210.80
200.70
188.40
203.20
223.267

191.163

Source of WPI and WPI (Price of HSD): Office of Economic Advisor,


Ministry of Commerce and Industry (www.eaindustry.nic.in),
From

To

4/1/2015

9/30/2015

10/1/2015

3/31/2016

IRC
3.83%
-7.65%
Total

Days
183

Average IRC
-1.91%

183
366

Source of IRC: CERC (www.cercind.gov.in)

59

Annexure 1 A
Wind Energy Projects

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
Useful Life

MW
%
Years

1
20%
25

Power Plant Cost

Rs Lacs/MW

Tariff Period

Years

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
433.865
185.942

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

Rs Lacs
years
years
%

433.86
0
12
12.76%

Rs Lacs
% p.a
Year

185.94
20.00%
10

Return on Equity 11th year onwards


Weighted average of ROE
Discount Rate

% p.a

24.00%
22.40%
10.64%

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

619.807

3 Sources of Fund
13

Debt: Equity

Debt Component

Equity Component
Equity amount
16% Return on Equity for first 10 years
RoE Period

4 Financial Assumptions
Fiscal Assumptions
34.610%
21%
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
O &M (FY16-17)
Total O & M Expenses Escalation
O &M (FY12-13)

Months
Months
%

Rs Lacs/MW
%
Rs Lacs/MW

1
15%
2
13.26%

11.24
5.72%
9.00

60

Determination of Tariff
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

0.904

0.817

0.738

0.667

0.603

0.545

0.493

0.445

0.402

0.364

0.329

0.297

0.269

0.243

0.219

0.198

0.179

0.162

0.146

0.132

0.120

0.108

0.098

0.088

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
11.24
36.13
53.06
3.47
37.19
141.09

2
11.89
36.13
48.45
3.40
37.19
137.05

5
12.57
36.13
43.83
3.33
37.19
133.05

6
13.28
36.13
39.22
3.26
37.19
129.09

7
14.04
36.13
34.61
3.20
37.19
125.17

8
14.85
36.13
29.99
3.14
37.19
121.30

9
15.70
36.13
25.38
3.08
37.19
117.48

10
16.59
36.13
20.76
3.03
37.19
113.71

11
17.54
36.13
16.15
2.97
37.19
109.99

12
18.55
36.13
11.54
2.92
37.19
106.33

13
19.61
36.13
6.92
3.05
44.63
110.34

14
20.73
36.13
2.31
3.00
44.63
106.80

15
21.92
9.55
0.00
2.41
44.63
78.51

16
23.17
9.55
0.00
2.48
44.63
79.83

17
24.49
9.55
0.00
2.55
44.63
81.23

18
25.90
9.55
0.00
2.63
44.63
82.71

19
27.38
9.55
0.00
2.71
44.63
84.27

20
28.94
9.55
0.00
2.79
44.63
85.92

21
30.60
9.55
0.00
2.88
44.63
87.66

22
32.35
9.55
0.00
2.98
44.63
89.51

23
34.20
9.55
0.00
3.08
44.63
91.46

24
36.16
9.55
0.00
3.19
44.63
93.52

25
38.22
9.55
0.00
3.30
44.63
95.70

26
40.41
9.55
0.00
3.42
44.63
98.01

27
42.72
9.55
0.00
3.54
44.63
100.44

1
0.64
2.06
3.03
0.20
2.12
8.05
5.93

2
0.68
2.06
2.77
0.19
2.12
7.82
5.70

3
0.72
2.06
2.50
0.19
2.12
7.59
5.47

4
0.76
2.06
2.24
0.19
2.12
7.37
5.25

5
0.80
2.06
1.98
0.18
2.12
7.14
5.02

6
0.85
2.06
1.71
0.18
2.12
6.92
4.80

7
0.90
2.06
1.45
0.18
2.12
6.71
4.58

8
0.95
2.06
1.19
0.17
2.12
6.49
4.37

9
1.00
2.06
0.92
0.17
2.12
6.28
4.16

10
1.06
2.06
0.66
0.17
2.12
6.07
3.95

11
1.12
2.06
0.40
0.17
2.55
6.30
3.75

12
1.18
2.06
0.13
0.17
2.55
6.10
3.55

13
1.25
0.55
0.00
0.14
2.55
4.48
1.93

14
1.32
0.55
0.00
0.14
2.55
4.56
2.01

15
1.40
0.55
0.00
0.15
2.55
4.64
2.09

16
1.48
0.55
0.00
0.15
2.55
4.72
2.17

17
1.56
0.55
0.00
0.15
2.55
4.81
2.26

18
1.65
0.55
0.00
0.16
2.55
4.90
2.36

19
1.75
0.55
0.00
0.16
2.55
5.00
2.46

20
1.85
0.55
0.00
0.17
2.55
5.11
2.56

21
1.95
0.55
0.00
0.18
2.55
5.22
2.67

22
2.06
0.55
0.00
0.18
2.55
5.34
2.79

23
2.18
0.55
0.00
0.19
2.55
5.46
2.92

24
2.31
0.55
0.00
0.20
2.55
5.59
3.05

25
2.44
0.55
0.00
0.20
2.55
5.73
3.19

Levallised tariff corresponding to Useful life


Per Unit Cost of Generation
Unit
Levellised
O&M expn
Rs/kWh
1.02
Depreciation
Rs/kWh
1.70
Int. on term loan
Rs/kWh
1.44
Int. on working capital
Rs/kWh
0.18
RoE
Rs/kWh
2.25
Total COG
Rs/kWh
6.60
COG excl. RoE
Levellised
Discount Factor
Levellised Tariff

6.60

0.904

0.817

0.738

0.667

0.603

0.545

0.493

0.445

0.402

0.364

0.329

0.297

0.269

0.243

0.219

0.198

0.179

0.162

0.146

0.132

0.120

0.108

0.098

0.088

Rs/Unit

Determination of Accelerated Depreciation for Wind Power Projects


Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Additional Depriciation
Income Tax (Normal Rates)
Capital Cost Rs. Lakh

90%
5.28%
80%
20.00%
34.610%
619.807

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

Unit
%
Rs Lakh

1
2.64%
16.36

2
5.28%
32.73

3
5.28%
32.73

4
5
5.28% 5.28%
32.73 32.73

6
5.28%
32.73

7
5.28%
32.73

8
5.28%
32.73

9
5.28%
32.73

10
5.28%
32.73

11
5.28%
32.73

12
5.28%
32.73

13
5.28%
32.73

14
5.28%
32.73

15
5.28%
32.73

16
5.28%
32.73

17
5.28%
32.73

18
2.88%
17.85

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50.00%
50%
309.90

50.00%
45.00%
5%
278.91

5.00%
4.00%
1.00%
24.79

1.00% 0.20%
0.80% 0.16%
0.20% 0.04%
4.96
0.99

0.04%
0.03%
0.01%
0.20

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

293.54
101.59
0.88
11.60

246.19
85.21
1.75
4.86

-7.93
-2.75
1.75
-0.16

-27.77 -31.73
-9.61 -10.98
1.75
1.75
-0.55
-0.63

-32.53
-11.26
1.75
-0.64

-32.69
-11.31
1.75
-0.65

-32.72
-11.32
1.75
-0.65

-32.72
-11.33
1.75
-0.65

-32.73
-11.33
1.75
-0.65

-32.73
-11.33
1.75
-0.65

-32.73
-11.33
1.75
-0.65

-32.73
-11.33
1.75
-0.65

-32.73
-11.33
1.75
-0.65

-32.73
-11.33
1.75
-0.65

-32.73
-11.33
1.75
-0.65

-32.73
-11.33
1.75
-0.65

-17.85
-6.18
1.75
-0.35

0.00
0.00
1.75
0.00

0.00
0.00
1.75
0.00

1.00

0.95
5.31

0.86

0.63

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
Tax Benefit Levellised
Electricity Generation (Levellised)
Levellised benefit

11.81
1.66
0.71
Rs/Unit

0.78

0.70

61

Annexure 1 B
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
Useful Life

MW
%
Years

1
22%
25

Power Plant Cost

Rs Lacs/MW

Tariff Period

Years

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
433.865
185.942

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

Rs Lacs
years
years
%

433.86
0
12
12.76%

Rs Lacs
% p.a
Year

185.94
20.00%
10

Return on Equity 11th year onwards


Weighted average of ROE
Discount Rate

% p.a

24.00%
22.40%
10.64%

Income Tax

34.610%

Depreciation Rate for first 12 years


Depreciation Rate 13th year onwards

%
%

5.83%
1.54%

2 Project Cost
Capital Cost/MW

619.807

3 Sources of Fund
13

Debt: Equity

Debt Component

Equity Component
Equity amount
16% Return on Equity for first 10 years
RoE Period

4 Financial Assumptions
Fiscal Assumptions
Depreciation

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
O &M (FY16-17)
Total O & M Expenses Escalation
O &M (FY12-13)

Months
Months
%

Rs Lacs/MW
%
Rs Lacs/MW

1
15%
2
13.26%

11.24
5.72%
9.00

62

Determination of Tariff
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

0.904

0.817

0.738

0.667

0.603

0.545

0.493

0.445

0.402

0.364

0.329

0.297

0.269

0.243

0.219

0.198

0.179

0.162

0.146

0.132

0.120

0.108

0.098

0.088

Unit
MW
MU

Year--->

1
1
1.93

2
1
1.93

3
1
1.93

4
1
1.93

5
1
1.93

6
1
1.93

7
1
1.93

8
1
1.93

9
1
1.93

10
1
1.93

11
1
1.93

12
1
1.93

13
1
1.93

14
1
1.93

15
1
1.93

16
1
1.93

17
1
1.93

18
1
1.93

19
1
1.93

20
1
1.93

21
1
1.93

22
1
1.93

23
1
1.93

24
1
1.93

25
1
1.93

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

Year--->

1
11.24
36.13
53.06
3.47
37.19
141.09

2
11.89
36.13
48.45
3.40
37.19
137.05

5
12.57
36.13
43.83
3.33
37.19
133.05

6
13.28
36.13
39.22
3.26
37.19
129.09

7
14.04
36.13
34.61
3.20
37.19
125.17

8
14.85
36.13
29.99
3.14
37.19
121.30

9
15.70
36.13
25.38
3.08
37.19
117.48

10
16.59
36.13
20.76
3.03
37.19
113.71

11
17.54
36.13
16.15
2.97
37.19
109.99

12
18.55
36.13
11.54
2.92
37.19
106.33

13
19.61
36.13
6.92
3.05
44.63
110.34

14
20.73
36.13
2.31
3.00
44.63
106.80

15
21.92
9.55
0.00
2.41
44.63
78.51

16
23.17
9.55
0.00
2.48
44.63
79.83

17
24.49
9.55
0.00
2.55
44.63
81.23

18
25.90
9.55
0.00
2.63
44.63
82.71

19
27.38
9.55
0.00
2.71
44.63
84.27

20
28.94
9.55
0.00
2.79
44.63
85.92

21
30.60
9.55
0.00
2.88
44.63
87.66

22
32.35
9.55
0.00
2.98
44.63
89.51

23
34.20
9.55
0.00
3.08
44.63
91.46

24
36.16
9.55
0.00
3.19
44.63
93.52

25
38.22
9.55
0.00
3.30
44.63
95.70

26
40.41
9.55
0.00
3.42
44.63
98.01

27
42.72
9.55
0.00
3.54
44.63
100.44

1
0.58
1.87
2.75
0.18
1.93
7.32
5.39

2
0.62
1.87
2.51
0.18
1.93
7.11
5.18

3
0.65
1.87
2.27
0.17
1.93
6.90
4.97

4
0.69
1.87
2.04
0.17
1.93
6.70
4.77

5
0.73
1.87
1.80
0.17
1.93
6.50
4.57

6
0.77
1.87
1.56
0.16
1.93
6.29
4.36

7
0.81
1.87
1.32
0.16
1.93
6.10
4.17

8
0.86
1.87
1.08
0.16
1.93
5.90
3.97

9
0.91
1.87
0.84
0.15
1.93
5.71
3.78

10
0.96
1.87
0.60
0.15
1.93
5.52
3.59

11
1.02
1.87
0.36
0.16
2.32
5.73
3.41

12
1.08
1.87
0.12
0.16
2.32
5.54
3.23

13
1.14
0.50
0.00
0.13
2.32
4.07
1.76

14
1.20
0.50
0.00
0.13
2.32
4.14
1.83

15
1.27
0.50
0.00
0.13
2.32
4.21
1.90

16
1.34
0.50
0.00
0.14
2.32
4.29
1.98

17
1.42
0.50
0.00
0.14
2.32
4.37
2.06

18
1.50
0.50
0.00
0.15
2.32
4.46
2.14

19
1.59
0.50
0.00
0.15
2.32
4.55
2.23

20
1.68
0.50
0.00
0.15
2.32
4.64
2.33

21
1.77
0.50
0.00
0.16
2.32
4.75
2.43

22
1.88
0.50
0.00
0.17
2.32
4.85
2.54

23
1.98
0.50
0.00
0.17
2.32
4.97
2.65

24
2.10
0.50
0.00
0.18
2.32
5.09
2.77

25
2.22
0.50
0.00
0.18
2.32
5.21
2.90

Levallised tariff corresponding to Useful life


Per Unit Cost of Generation
Unit
Levellised
O&M expn
Rs/kWh
0.93
Depreciation
Rs/kWh
1.55
Int. on term loan
Rs/kWh
1.31
Int. on working capital
Rs/kWh
0.16
RoE
Rs/kWh
2.05
Total COG
Rs/kWh
6.00
COG excl. RoE
Levellised
Discount Factor
Levellised Tariff

6.00

0.904

0.817

0.738

0.667

0.603

0.545

0.493

0.445

0.402

0.364

0.329

0.297

0.269

0.243

0.219

0.198

0.179

0.162

0.146

0.132

0.120

0.108

0.098

0.088

Rs/Unit

Determination of Accelerated Depreciation for Wind Power Projects


Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Additional Depriciation
Income Tax (Normal Rates)
Capital Cost Rs. Lakh

90%
5.28%
80%
20.00%
34.610%
619.807

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

Unit
%
Rs Lakh

1
2.64%
16.36

2
5.28%
32.73

3
5.28%
32.73

4
5
5.28% 5.28%
32.73 32.73

6
5.28%
32.73

7
5.28%
32.73

8
5.28%
32.73

9
5.28%
32.73

10
5.28%
32.73

11
5.28%
32.73

12
5.28%
32.73

13
5.28%
32.73

14
5.28%
32.73

15
5.28%
32.73

16
5.28%
32.73

17
5.28%
32.73

18
2.88%
17.85

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50.00%
50%
309.90

50.00%
45.00%
5%
278.91

5.00%
4.00%
1.00%
24.79

1.00% 0.20%
0.80% 0.16%
0.20% 0.04%
4.96
0.99

0.04%
0.03%
0.01%
0.20

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

293.54
101.59
0.96
10.54

246.19
85.21
1.93
4.42

-7.93
-2.75
1.93
-0.14

-27.77 -31.73
-9.61 -10.98
1.93
1.93
-0.50
-0.57

-32.53
-11.26
1.93
-0.58

-32.69
-11.31
1.93
-0.59

-32.72
-11.32
1.93
-0.59

-32.72
-11.33
1.93
-0.59

-32.73
-11.33
1.93
-0.59

-32.73
-11.33
1.93
-0.59

-32.73
-11.33
1.93
-0.59

-32.73
-11.33
1.93
-0.59

-32.73
-11.33
1.93
-0.59

-32.73
-11.33
1.93
-0.59

-32.73
-11.33
1.93
-0.59

-32.73
-11.33
1.93
-0.59

-17.85
-6.18
1.93
-0.32

0.00
0.00
1.93
0.00

0.00
0.00
1.93
0.00

1.00

0.95
4.83

0.86

0.63

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
Tax Benefit Levellised
Electricity Generation (Levellised)
Levellised benefit

11.81
1.83
0.65
Rs/Unit

0.78

0.70

63

Annexure 1 C
Assumptions: Wind Energy Projects
S. No.

Assumption Head

Sub-Head

Sub-Head (2)

Unit

Wind Zone
3

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

MW
%
Years

1
25%
25

Power Plant Cost

Rs Lacs/MW

Tariff Period

Years

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
433.865
185.942

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

Rs Lacs
years
years
%

433.86
0
12
12.76%

Rs Lacs
% p.a
Year

185.94
20.00%
10

Return on Equity 11th year onwards


Weighted average of ROE
Discount Rate

% p.a

24.00%
22.40%
10.64%

Income Tax

34.610%

Depreciation Rate for first 12 years


Depreciation Rate 13th year onwards

%
%

5.83%
1.54%

2 Project Cost
Capital Cost/MW

619.807

3 Sources of Fund
13

Debt: Equity

Debt Component

Equity Component
Equity amount
16% Return on Equity for first 10 years
RoE Period

4 Financial Assumptions
Fiscal Assumptions
Depreciation

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
O &M (FY16-17)
Total O & M Expenses Escalation
O &M (FY12-13)

Months
Months
%

Rs Lacs/MW
%
Rs Lacs/MW

1
15%
2
13.26%

11.24
5.72%
9.00

64

Determination of Tariff
1

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

0.904

0.817

0.738

0.667

0.603

0.545

0.493

0.445

0.402

0.364

0.329

0.297

0.269

0.243

0.219

0.198

0.179

0.162

0.146

0.132

0.120

0.108

0.098

0.088

Unit
MW
MU

Year--->

1
1
2.19

2
1
2.19

3
1
2.19

4
1
2.19

5
1
2.19

6
1
2.19

7
1
2.19

8
1
2.19

9
1
2.19

10
1
2.19

11
1
2.19

12
1
2.19

13
1
2.19

14
1
2.19

15
1
2.19

16
1
2.19

17
1
2.19

18
1
2.19

19
1
2.19

20
1
2.19

21
1
2.19

22
1
2.19

23
1
2.19

24
1
2.19

25
1
2.19

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

Year--->

1
11.24
36.13
53.06
3.47
37.19
141.09

2
11.89
36.13
48.45
3.40
37.19
137.05

5
12.57
36.13
43.83
3.33
37.19
133.05

6
13.28
36.13
39.22
3.26
37.19
129.09

7
14.04
36.13
34.61
3.20
37.19
125.17

8
14.85
36.13
29.99
3.14
37.19
121.30

9
15.70
36.13
25.38
3.08
37.19
117.48

10
16.59
36.13
20.76
3.03
37.19
113.71

11
17.54
36.13
16.15
2.97
37.19
109.99

12
18.55
36.13
11.54
2.92
37.19
106.33

13
19.61
36.13
6.92
3.05
44.63
110.34

14
20.73
36.13
2.31
3.00
44.63
106.80

15
21.92
9.55
0.00
2.41
44.63
78.51

16
23.17
9.55
0.00
2.48
44.63
79.83

17
24.49
9.55
0.00
2.55
44.63
81.23

18
25.90
9.55
0.00
2.63
44.63
82.71

19
27.38
9.55
0.00
2.71
44.63
84.27

20
28.94
9.55
0.00
2.79
44.63
85.92

21
30.60
9.55
0.00
2.88
44.63
87.66

22
32.35
9.55
0.00
2.98
44.63
89.51

23
34.20
9.55
0.00
3.08
44.63
91.46

24
36.16
9.55
0.00
3.19
44.63
93.52

25
38.22
9.55
0.00
3.30
44.63
95.70

26
40.41
9.55
0.00
3.42
44.63
98.01

27
42.72
9.55
0.00
3.54
44.63
100.44

1
0.51
1.65
2.42
0.16
1.70
6.44
4.74

2
0.54
1.65
2.21
0.16
1.70
6.26
4.56

3
0.57
1.65
2.00
0.15
1.70
6.08
4.38

4
0.61
1.65
1.79
0.15
1.70
5.89
4.20

5
0.64
1.65
1.58
0.15
1.70
5.72
4.02

6
0.68
1.65
1.37
0.14
1.70
5.54
3.84

7
0.72
1.65
1.16
0.14
1.70
5.36
3.67

8
0.76
1.65
0.95
0.14
1.70
5.19
3.49

9
0.80
1.65
0.74
0.14
1.70
5.02
3.32

10
0.85
1.65
0.53
0.13
1.70
4.86
3.16

11
0.90
1.65
0.32
0.14
2.04
5.04
3.00

12
0.95
1.65
0.11
0.14
2.04
4.88
2.84

13
1.00
0.44
0.00
0.11
2.04
3.58
1.55

14
1.06
0.44
0.00
0.11
2.04
3.65
1.61

15
1.12
0.44
0.00
0.12
2.04
3.71
1.67

16
1.18
0.44
0.00
0.12
2.04
3.78
1.74

17
1.25
0.44
0.00
0.12
2.04
3.85
1.81

18
1.32
0.44
0.00
0.13
2.04
3.92
1.89

19
1.40
0.44
0.00
0.13
2.04
4.00
1.97

20
1.48
0.44
0.00
0.14
2.04
4.09
2.05

21
1.56
0.44
0.00
0.14
2.04
4.18
2.14

22
1.65
0.44
0.00
0.15
2.04
4.27
2.23

23
1.75
0.44
0.00
0.15
2.04
4.37
2.33

24
1.85
0.44
0.00
0.16
2.04
4.48
2.44

25
1.95
0.44
0.00
0.16
2.04
4.59
2.55

Units Generation
Installed Capacity
Gross/Net Generation

Levallised tariff corresponding to Useful life


Per Unit Cost of Generation
Unit
Levellised
O&M expn
Rs/kWh
0.82
Depreciation
Rs/kWh
1.36
Int. on term loan
Rs/kWh
1.15
Int. on working capital
Rs/kWh
0.14
RoE
Rs/kWh
1.80
Total COG
Rs/kWh
5.28
COG excl. RoE
Levellised
Discount Factor
Levellised Tariff

5.28

0.904

0.817

0.738

0.667

0.603

0.545

0.493

0.445

0.402

0.364

0.329

0.297

0.269

0.243

0.219

0.198

0.179

0.162

0.146

0.132

0.120

0.108

0.098

0.088

Rs/Unit

Determination of Accelerated Depreciation for Wind Power Projects


Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Additional Depriciation
Income Tax (Normal Rates)
Capital Cost Rs. Lakh

90%
5.28%
80%
20.00%
34.610%
619.807

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

Unit
%
Rs Lakh

1
2.64%
16.36

2
5.28%
32.73

3
5.28%
32.73

4
5
5.28% 5.28%
32.73 32.73

6
5.28%
32.73

7
5.28%
32.73

8
5.28%
32.73

9
5.28%
32.73

10
5.28%
32.73

11
5.28%
32.73

12
5.28%
32.73

13
5.28%
32.73

14
5.28%
32.73

15
5.28%
32.73

16
5.28%
32.73

17
5.28%
32.73

18
2.88%
17.85

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50.00%
50%
309.90

50.00%
45.00%
5%
278.91

5.00%
4.00%
1.00%
24.79

1.00% 0.20%
0.80% 0.16%
0.20% 0.04%
4.96
0.99

0.04%
0.03%
0.01%
0.20

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Rs Lakh
293.54
Tax Benefit
Rs Lakh
101.59
Energy generation
MU
1.10
Per unit benefit
Rs/Unit
9.28
Discounting Factor
1.00
Tax Benefit Levellised
11.81
Electricity Generation
2.07 Rs/Unit
Levellised
benefit (Levellised)
1.03
Levellised benefit
Rs/Unit
0.57

246.19
85.21
2.19
3.89
0.95
4.25

-7.93
-2.75
2.19
-0.13
0.86

-27.77 -31.73
-9.61 -10.98
2.19
2.19
-0.44 -0.50
0.78
0.70

-32.53
-11.26
2.19
-0.51
0.63

-32.69
-11.31
2.19
-0.52
0.57

-32.72
-11.32
2.19
-0.52
0.52

-32.72
-11.33
2.19
-0.52
0.47

-32.73
-11.33
2.19
-0.52
0.42

-32.73
-11.33
2.19
-0.52
0.38

-32.73
-11.33
2.19
-0.52
0.35

-32.73
-11.33
2.19
-0.52
0.31

-32.73
-11.33
2.19
-0.52
0.28

-32.73
-11.33
2.19
-0.52
0.26

-32.73
-11.33
2.19
-0.52
0.23

-32.73
-11.33
2.19
-0.52
0.21

-17.85
-6.18
2.19
-0.28
0.19

0.00
0.00
2.19
0.00
0.17

0.00
0.00
2.19
0.00
0.15

65

Annexure 1 D
Assumptions: Wind Energy Projects
S. No.

Assumption Head

Sub-Head

Sub-Head (2)

Unit

Wind Zone
4

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

MW
%
Years

1
30%
25

Power Plant Cost

Rs Lacs/MW

Tariff Period

Years

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
433.865
185.942

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

Rs Lacs
years
years
%

433.86
0
12
12.76%

Rs Lacs
% p.a
Year

185.94
20.00%
10

Return on Equity 11th year onwards


Weighted average of ROE
Discount Rate

% p.a

24.00%
22.40%
10.64%

Income Tax

34.610%

Depreciation Rate for first 12 years


Depreciation Rate 13th year onwards

%
%

5.83%
1.54%

2 Project Cost
Capital Cost/MW

619.807

3 Sources of Fund
13

Debt: Equity

Debt Component

Equity Component
Equity amount
16% Return on Equity for first 10 years
RoE Period

4 Financial Assumptions
Fiscal Assumptions
Depreciation

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
O &M (FY16-17)
Total O & M Expenses Escalation
O &M (FY12-13)

Months
Months
%

Rs Lacs/MW
%
Rs Lacs/MW

1
15%
2
13.26%

11.24
5.72%
9.00

66

Determination of Tariff
1

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

0.904

0.817

0.738

0.667

0.603

0.545

0.493

0.445

0.402

0.364

0.329

0.297

0.269

0.243

0.219

0.198

0.179

0.162

0.146

0.132

0.120

0.108

0.098

0.088

Unit
MW
MU

Year--->

1
1
2.63

2
1
2.63

3
1
2.63

4
1
2.63

5
1
2.63

6
1
2.63

7
1
2.63

8
1
2.63

9
1
2.63

10
1
2.63

11
1
2.63

12
1
2.63

13
1
2.63

14
1
2.63

15
1
2.63

16
1
2.63

17
1
2.63

18
1
2.63

19
1
2.63

20
1
2.63

21
1
2.63

22
1
2.63

23
1
2.63

24
1
2.63

25
1
2.63

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

Year--->

1
11.24
36.13
53.06
3.47
37.19
141.09

2
11.89
36.13
48.45
3.40
37.19
137.05

5
12.57
36.13
43.83
3.33
37.19
133.05

6
13.28
36.13
39.22
3.26
37.19
129.09

7
14.04
36.13
34.61
3.20
37.19
125.17

8
14.85
36.13
29.99
3.14
37.19
121.30

9
15.70
36.13
25.38
3.08
37.19
117.48

10
16.59
36.13
20.76
3.03
37.19
113.71

11
17.54
36.13
16.15
2.97
37.19
109.99

12
18.55
36.13
11.54
2.92
37.19
106.33

13
19.61
36.13
6.92
3.05
44.63
110.34

14
20.73
36.13
2.31
3.00
44.63
106.80

15
21.92
9.55
0.00
2.41
44.63
78.51

16
23.17
9.55
0.00
2.48
44.63
79.83

17
24.49
9.55
0.00
2.55
44.63
81.23

18
25.90
9.55
0.00
2.63
44.63
82.71

19
27.38
9.55
0.00
2.71
44.63
84.27

20
28.94
9.55
0.00
2.79
44.63
85.92

21
30.60
9.55
0.00
2.88
44.63
87.66

22
32.35
9.55
0.00
2.98
44.63
89.51

23
34.20
9.55
0.00
3.08
44.63
91.46

24
36.16
9.55
0.00
3.19
44.63
93.52

25
38.22
9.55
0.00
3.30
44.63
95.70

26
40.41
9.55
0.00
3.42
44.63
98.01

27
42.72
9.55
0.00
3.54
44.63
100.44

1
0.43
1.37
2.02
0.13
1.42
5.37
3.95

2
0.45
1.37
1.84
0.13
1.42
5.22
3.80

3
0.48
1.37
1.67
0.13
1.42
5.06
3.65

4
0.51
1.37
1.49
0.12
1.42
4.91
3.50

5
0.53
1.37
1.32
0.12
1.42
4.76
3.35

6
0.56
1.37
1.14
0.12
1.42
4.62
3.20

7
0.60
1.37
0.97
0.12
1.42
4.47
3.06

8
0.63
1.37
0.79
0.12
1.42
4.33
2.91

9
0.67
1.37
0.61
0.11
1.42
4.19
2.77

10
0.71
1.37
0.44
0.11
1.42
4.05
2.63

11
0.75
1.37
0.26
0.12
1.70
4.20
2.50

12
0.79
1.37
0.09
0.11
1.70
4.06
2.37

13
0.83
0.36
0.00
0.09
1.70
2.99
1.29

14
0.88
0.36
0.00
0.09
1.70
3.04
1.34

15
0.93
0.36
0.00
0.10
1.70
3.09
1.39

16
0.99
0.36
0.00
0.10
1.70
3.15
1.45

17
1.04
0.36
0.00
0.10
1.70
3.21
1.51

18
1.10
0.36
0.00
0.11
1.70
3.27
1.57

19
1.16
0.36
0.00
0.11
1.70
3.34
1.64

20
1.23
0.36
0.00
0.11
1.70
3.41
1.71

21
1.30
0.36
0.00
0.12
1.70
3.48
1.78

22
1.38
0.36
0.00
0.12
1.70
3.56
1.86

23
1.45
0.36
0.00
0.13
1.70
3.64
1.94

24
1.54
0.36
0.00
0.13
1.70
3.73
2.03

25
1.63
0.36
0.00
0.13
1.70
3.82
2.12

Units Generation
Installed Capacity
Gross/Net Generation

Levallised tariff corresponding to Useful life


Per Unit Cost of Generation
Unit
Levellised
O&M expn
Rs/kWh
0.68
Depreciation
Rs/kWh
1.14
Int. on term loan
Rs/kWh
0.96
Int. on working capital
Rs/kWh
0.12
RoE
Rs/kWh
1.50
Total COG
Rs/kWh
4.40
COG excl. RoE
Levellised
Discount Factor
Levellised Tariff

4.40

0.904

0.817

0.738

0.667

0.603

0.545

0.493

0.445

0.402

0.364

0.329

0.297

0.269

0.243

0.219

0.198

0.179

0.162

0.146

0.132

0.120

0.108

0.098

0.088

Rs/Unit

Determination of Accelerated Depreciation for Wind Power Projects


Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Additional Depriciation
Income Tax (Normal Rates)
Capital Cost Rs. Lakh

90%
5.28%
80%
20.00%
34.610%
619.807

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

Unit
%
Rs Lakh

1
2.64%
16.36

2
5.28%
32.73

3
5.28%
32.73

4
5
5.28% 5.28%
32.73 32.73

6
5.28%
32.73

7
5.28%
32.73

8
5.28%
32.73

9
5.28%
32.73

10
5.28%
32.73

11
5.28%
32.73

12
5.28%
32.73

13
5.28%
32.73

14
5.28%
32.73

15
5.28%
32.73

16
5.28%
32.73

17
5.28%
32.73

18
2.88%
17.85

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50.00%
50%
309.90

50.00%
45.00%
5%
278.91

5.00%
4.00%
1.00%
24.79

1.00% 0.20%
0.80% 0.16%
0.20% 0.04%
4.96
0.99

0.04%
0.03%
0.01%
0.20

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Rs Lakh
293.54
Tax Benefit
Rs Lakh
101.59
Energy generation
MU
1.31
Per unit benefit
Rs/Unit
7.73
Discounting Factor
1.00
Tax Benefit Levellised
11.81
Electricity Generation
2.49 Rs/Unit
Levellised
benefit (Levellised)
0.86
Levellised benefit
Rs/Unit
0.47

246.19
85.21
2.63
3.24
0.95
3.54

-7.93
-2.75
2.63
-0.10
0.86

-27.77 -31.73
-9.61 -10.98
2.63
2.63
-0.37 -0.42
0.78
0.70

-32.53
-11.26
2.63
-0.43
0.63

-32.69
-11.31
2.63
-0.43
0.57

-32.72
-11.32
2.63
-0.43
0.52

-32.72
-11.33
2.63
-0.43
0.47

-32.73
-11.33
2.63
-0.43
0.42

-32.73
-11.33
2.63
-0.43
0.38

-32.73
-11.33
2.63
-0.43
0.35

-32.73
-11.33
2.63
-0.43
0.31

-32.73
-11.33
2.63
-0.43
0.28

-32.73
-11.33
2.63
-0.43
0.26

-32.73
-11.33
2.63
-0.43
0.23

-32.73
-11.33
2.63
-0.43
0.21

-17.85
-6.18
2.63
-0.24
0.19

0.00
0.00
2.63
0.00
0.17

0.00
0.00
2.63
0.00
0.15

67

Annexure 1 E
Assumptions: Wind Energy Projects
S. No.

Assumption Head

Sub-Head

Sub-Head (2)

Unit

Wind Zone
5

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

MW
%
Years

1
32%
25

Power Plant Cost

Rs Lacs/MW

Tariff Period

Years

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
433.865
185.942

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

Rs Lacs
years
years
%

433.86
0
12
12.76%

Rs Lacs
% p.a
Year

185.94
20.00%
10

Return on Equity 11th year onwards


Weighted average of ROE
Discount Rate

% p.a

24.00%
22.40%
10.64%

Income Tax

34.610%

Depreciation Rate for first 12 years


Depreciation Rate 13th year onwards

%
%

5.83%
1.54%

2 Project Cost
Capital Cost/MW

619.807

3 Sources of Fund
13

Debt: Equity

Debt Component

Equity Component
Equity amount
16% Return on Equity for first 10 years
RoE Period

4 Financial Assumptions
Fiscal Assumptions
Depreciation

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
O &M (FY16-17)
Total O & M Expenses Escalation
O &M (FY12-13)

Months
Months
%

Rs Lacs/MW
%
Rs Lacs/MW

1
15%
2
13.26%

11.24
5.72%
9.00

68

Determination of Tariff
1

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

0.904

0.817

0.738

0.667

0.603

0.545

0.493

0.445

0.402

0.364

0.329

0.297

0.269

0.243

0.219

0.198

0.179

0.162

0.146

0.132

0.120

0.108

0.098

0.088

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
11.24
36.13
53.06
3.47
37.19
141.09

2
11.89
36.13
48.45
3.40
37.19
137.05

5
12.57
36.13
43.83
3.33
37.19
133.05

6
13.28
36.13
39.22
3.26
37.19
129.09

7
14.04
36.13
34.61
3.20
37.19
125.17

8
14.85
36.13
29.99
3.14
37.19
121.30

9
15.70
36.13
25.38
3.08
37.19
117.48

10
16.59
36.13
20.76
3.03
37.19
113.71

11
17.54
36.13
16.15
2.97
37.19
109.99

12
18.55
36.13
11.54
2.92
37.19
106.33

13
19.61
36.13
6.92
3.05
44.63
110.34

14
20.73
36.13
2.31
3.00
44.63
106.80

15
21.92
9.55
0.00
2.41
44.63
78.51

16
23.17
9.55
0.00
2.48
44.63
79.83

17
24.49
9.55
0.00
2.55
44.63
81.23

18
25.90
9.55
0.00
2.63
44.63
82.71

19
27.38
9.55
0.00
2.71
44.63
84.27

20
28.94
9.55
0.00
2.79
44.63
85.92

21
30.60
9.55
0.00
2.88
44.63
87.66

22
32.35
9.55
0.00
2.98
44.63
89.51

23
34.20
9.55
0.00
3.08
44.63
91.46

24
36.16
9.55
0.00
3.19
44.63
93.52

25
38.22
9.55
0.00
3.30
44.63
95.70

26
40.41
9.55
0.00
3.42
44.63
98.01

27
42.72
9.55
0.00
3.54
44.63
100.44

1
0.40
1.29
1.89
0.12
1.33
5.03
3.71

2
0.42
1.29
1.73
0.12
1.33
4.89
3.56

3
0.45
1.29
1.56
0.12
1.33
4.75
3.42

4
0.47
1.29
1.40
0.12
1.33
4.61
3.28

5
0.50
1.29
1.23
0.11
1.33
4.47
3.14

6
0.53
1.29
1.07
0.11
1.33
4.33
3.00

7
0.56
1.29
0.91
0.11
1.33
4.19
2.86

8
0.59
1.29
0.74
0.11
1.33
4.06
2.73

9
0.63
1.29
0.58
0.11
1.33
3.92
2.60

10
0.66
1.29
0.41
0.10
1.33
3.79
2.47

11
0.70
1.29
0.25
0.11
1.59
3.94
2.34

12
0.74
1.29
0.08
0.11
1.59
3.81
2.22

13
0.78
0.34
0.00
0.09
1.59
2.80
1.21

14
0.83
0.34
0.00
0.09
1.59
2.85
1.26

15
0.87
0.34
0.00
0.09
1.59
2.90
1.31

16
0.92
0.34
0.00
0.09
1.59
2.95
1.36

17
0.98
0.34
0.00
0.10
1.59
3.01
1.41

18
1.03
0.34
0.00
0.10
1.59
3.07
1.47

19
1.09
0.34
0.00
0.10
1.59
3.13
1.54

20
1.15
0.34
0.00
0.11
1.59
3.19
1.60

21
1.22
0.34
0.00
0.11
1.59
3.26
1.67

22
1.29
0.34
0.00
0.11
1.59
3.34
1.74

23
1.36
0.34
0.00
0.12
1.59
3.41
1.82

24
1.44
0.34
0.00
0.12
1.59
3.50
1.90

25
1.52
0.34
0.00
0.13
1.59
3.58
1.99

Units Generation
Installed Capacity
Gross/Net Generation

Levallised tariff corresponding to Useful life


Per Unit Cost of Generation
Unit
Levellised
O&M expn
Rs/kWh
0.64
Depreciation
Rs/kWh
1.07
Int. on term loan
Rs/kWh
0.90
Int. on working capital
Rs/kWh
0.11
RoE
Rs/kWh
1.41
Total COG
Rs/kWh
4.13
COG excl. RoE
Levellised
Discount Factor
Levellised Tariff

4.13

0.904

0.817

0.738

0.667

0.603

0.545

0.493

0.445

0.402

0.364

0.329

0.297

0.269

0.243

0.219

0.198

0.179

0.162

0.146

0.132

0.120

0.108

0.098

0.088

Rs/Unit

Determination of Accelerated Depreciation for Wind Power Projects


Depreciation amount
Book Depreciation rate
Tax Depreciation rate
Additional Depriciation
Income Tax (Normal Rates)
Capital Cost Rs. Lakh

90%
5.28%
80%
20.00%
34.610%
619.807

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

Unit
%
Rs Lakh

1
2.64%
16.36

2
5.28%
32.73

3
5.28%
32.73

4
5
5.28% 5.28%
32.73 32.73

6
5.28%
32.73

7
5.28%
32.73

8
5.28%
32.73

9
5.28%
32.73

10
5.28%
32.73

11
5.28%
32.73

12
5.28%
32.73

13
5.28%
32.73

14
5.28%
32.73

15
5.28%
32.73

16
5.28%
32.73

17
5.28%
32.73

18
2.88%
17.85

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50.00%
50%
309.90

50.00%
45.00%
5%
278.91

5.00%
4.00%
1.00%
24.79

1.00% 0.20%
0.80% 0.16%
0.20% 0.04%
4.96
0.99

0.04%
0.03%
0.01%
0.20

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Rs Lakh
293.54
Tax Benefit
Rs Lakh
101.59
Energy generation
MU
1.40
Per unit benefit
Rs/Unit
7.25
Discounting Factor
1.00
Tax Benefit Levellised
11.81
Electricity Generation
2.65 Rs/Unit
Levellised
benefit (Levellised)
0.81
Levellised benefit
Rs/Unit
0.44

246.19
85.21
2.80
3.04
0.95
3.32

-7.93
-2.75
2.80
-0.10
0.86

-27.77 -31.73
-9.61 -10.98
2.80
2.80
-0.34 -0.39
0.78
0.70

-32.53
-11.26
2.80
-0.40
0.63

-32.69
-11.31
2.80
-0.40
0.57

-32.72
-11.32
2.80
-0.40
0.52

-32.72
-11.33
2.80
-0.40
0.47

-32.73
-11.33
2.80
-0.40
0.42

-32.73
-11.33
2.80
-0.40
0.38

-32.73
-11.33
2.80
-0.40
0.35

-32.73
-11.33
2.80
-0.40
0.31

-32.73
-11.33
2.80
-0.40
0.28

-32.73
-11.33
2.80
-0.40
0.26

-32.73
-11.33
2.80
-0.40
0.23

-32.73
-11.33
2.80
-0.40
0.21

-17.85
-6.18
2.80
-0.22
0.19

0.00
0.00
2.80
0.00
0.17

0.00
0.00
2.80
0.00
0.15

69

Annexure 2A
Small Hydro Projects
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
%
%
Years
Rs Lacs/MW
Years

1
45%
1%
0.00%
35
830.002
35

Debt

Equity

Total Debt Amount


Total Equity Amout

Rs Lacs
Rs Lacs

581.001
249.001

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

Rs Lacs
years
years
%

581.00
0
12
12.76%

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

Rs Lacs

249.00
16%
20%
24.00%
22.86%
10.64%

Income Tax

34.610%

Depreciation Rate for first 12 years


Depreciation Rate 13th year onwards

%
%

5.83%
0.87%

Debt: Equity
70%
30%

Debt Component

Equity Component

% p.a
% p.a

Financial Assumptions
Depreciation

Working Capital

For Fixed Charges


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

Months
Months

Intrest On Working Capital

O&M Expenses (2016-17)


Total O & M Expenses Escalation
O&M Expenses (2012-13)

Rs Lacs
%

1
15%
2
13.26%

Operation & Maintenance


31.23
5.72%
25.00

70

Determination of Tariff Component:


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

1
1
3.90

Fixed Cost
Unit
Year--->
1
31.23
O&M Expenses
Rs Lakh
48.39
Depreciation
Rs Lakh
71.06
Interest on term loan Rs Lakh
5.52
Interest on working Capital
Rs Lakh
49.80
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
205.99
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised 1
0.80
1.42
O&M expn
Rs/kWh
1.24
0.95
Depreciation
Rs/kWh
1.82
0.82
Int. on term loan
Rs/kWh
0.14
0.15
Int. on working capital Rs/kWh
1.28
1.36
RoE
Rs/kWh
Total COG
Rs/kWh
4.70
5.28
Levellised
Discount Factor
1
Levellised Tariff
4.70
Rs/Unit

2
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

36
1
3.90

2
33.02
48.39
64.88
5.48
49.80
201.56

3
34.90
48.39
58.70
5.44
49.80
197.23

4
36.90
48.39
52.52
5.41
49.80
193.02

5
39.01
48.39
46.34
5.38
49.80
188.93

6
41.24
48.39
40.16
5.36
49.80
184.96

7
43.60
48.39
33.98
5.35
49.80
181.13

8
46.10
48.39
27.80
5.35
49.80
177.44

9
48.73
48.39
21.63
5.35
49.80
173.90

10
51.52
48.39
15.45
5.36
49.80
170.52

11
54.47
48.39
9.27
5.61
59.76
177.49

12
57.58
48.39
3.09
5.64
59.76
174.46

13
60.88
7.23
0.00
4.82
59.76
132.69

14
64.36
7.23
0.00
5.01
59.76
136.36

15
68.04
7.23
0.00
5.21
59.76
140.24

16
71.93
7.23
0.00
5.42
59.76
144.34

17
76.05
7.23
0.00
5.64
59.76
148.68

18
80.40
7.23
0.00
5.88
59.76
153.26

19
85.00
7.23
0.00
6.12
59.76
158.11

20
89.86
7.23
0.00
6.39
59.76
163.24

21
95.00
7.23
0.00
6.67
59.76
168.66

22
100.43
7.23
0.00
6.96
59.76
174.39

23
106.18
7.23
0.00
7.27
59.76
180.44

24
112.25
7.23
0.00
7.60
59.76
186.84

25
118.67
7.23
0.00
7.95
59.76
193.61

26
125.46
7.23
0.00
8.32
59.76
200.77

27
132.63
7.23
0.00
8.71
59.76
208.33

28
140.22
7.23
0.00
9.12
59.76
216.33

29
148.24
7.23
0.00
9.56
59.76
224.79

30
156.72
7.23
0.00
10.02
59.76
233.73

31
165.69
7.23
0.00
10.50
59.76
243.18

32
175.16
7.23
0.00
11.02
59.76
253.17

33
185.18
7.23
0.00
11.56
59.76
263.73

34
195.77
7.23
0.00
12.13
59.76
274.90

35
206.97
7.23
0.00
12.74
59.76
286.71

2
0.85
1.24
1.66
0.14
1.28
5.16

3
0.89
1.24
1.50
0.14
1.28
5.05

4
0.95
1.24
1.35
0.14
1.28
4.95

5
1.00
1.24
1.19
0.14
1.28
4.84

6
1.06
1.24
1.03
0.14
1.28
4.74

7
1.12
1.24
0.87
0.14
1.28
4.64

8
1.18
1.24
0.71
0.14
1.28
4.55

9
1.25
1.24
0.55
0.14
1.28
4.46

10
1.32
1.24
0.40
0.14
1.28
4.37

11
1.40
1.24
0.24
0.14
1.53
4.55

12
1.48
1.24
0.08
0.14
1.53
4.47

13
1.56
0.19
0.00
0.12
1.53
3.40

14
1.65
0.19
0.00
0.13
1.53
3.49

15
1.74
0.19
0.00
0.13
1.53
3.59

16
1.84
0.19
0.00
0.14
1.53
3.70

17
1.95
0.19
0.00
0.14
1.53
3.81

18
2.06
0.19
0.00
0.15
1.53
3.93

19
2.18
0.19
0.00
0.16
1.53
4.05

20
2.30
0.19
0.00
0.16
1.53
4.18

21
2.43
0.19
0.00
0.17
1.53
4.32

22
2.57
0.19
0.00
0.18
1.53
4.47

23
2.72
0.19
0.00
0.19
1.53
4.62

24
2.88
0.19
0.00
0.19
1.53
4.79

25
3.04
0.19
0.00
0.20
1.53
4.96

26
3.21
0.19
0.00
0.21
1.53
5.14

27
3.40
0.19
0.00
0.22
1.53
5.34

28
3.59
0.19
0.00
0.23
1.53
5.54

29
3.80
0.19
0.00
0.24
1.53
5.76

30
4.02
0.19
0.00
0.26
1.53
5.99

31
4.25
0.19
0.00
0.27
1.53
6.23

32
4.49
0.19
0.00
0.28
1.53
6.49

33
4.75
0.19
0.00
0.30
1.53
6.76

34
5.02
0.19
0.00
0.31
1.53
7.04

35
5.30
0.19
0.00
0.33
1.53
7.35

0.904

0.817

0.738

0.667

0.603

0.545

2
5.28%
43.82

3
5.28%
43.82

4
5.28%
43.82

5
5.28%
43.82

6
5.28%
43.82

7
5.28%
43.82

100.00% 50.00%
50% 45.00%
50%
5%
415.00 373.50

5.00%
4.00%
1.00%
33.20

1.00%
0.80%
0.20%
6.64

0.20%
0.16%
0.04%
1.33

0.04%
0.03%
0.01%
0.27

-10.62
-3.68
3.90
-0.09
0.86

-37.18
-12.87
3.90
-0.33
0.78

-42.50
-14.71
3.90
-0.38
0.70

-43.56
-15.08
3.90
-0.39
0.63

0.493

0.445

0.402

0.364

0.329

0.297

0.269

0.243

0.219

0.198

0.179

0.162

0.146

0.132

0.120

0.108

0.098

0.088

0.080

0.072

0.065

0.059

0.053

0.048

0.044

8
5.28%
43.82

9
5.28%
43.82

10
5.28%
43.82

11
5.28%
43.82

12
5.28%
43.82

13
5.28%
43.82

14
5.28%
43.82

15
5.28%
43.82

16
5.28%
43.82

17
5.28%
43.82

18
2.88%
23.90

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

0.01%
0.01%
0.00%
0.05

0.00%
0.00%
0.00%
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

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%
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%
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%
0.00%
0.00%
0.00

0.00%
0.00%
0.00%
0.00

0.00%
0.00%
0.00%
0.00

-43.77
-15.15
3.90
-0.39
0.57

-43.81
-15.16
3.90
-0.39
0.52

0.00
0.00
3.90
0.00
0.47

0.00
0.00
3.90
0.00
0.42

0.00
0.00
3.90
0.00
0.38

0.00
0.00
3.90
0.00
0.35

0.00
0.00
3.90
0.00
0.31

0.00
0.00
3.90
0.00
0.28

0.00
0.00
3.90
0.00
0.26

0.00
0.00
3.90
0.00
0.23

0.00
0.00
3.90
0.00
0.21

0.00
0.00
3.90
0.00
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

0.039

0.036

0.032

33
0.00%
0.00

34
0.00%
0.00

35
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
3.90
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

Determination of Accelerated Depreciation


Depreciation amount
90%
Book Depreciation rate
5.28%
Tax Depreciation rate
80%
Additional depriciation
20.00%
Income Tax (Normal Rates) 34.61%
Capital Cost
830.0
Years------------>
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

Net Depreciation Benefit


Tax Benefit
Energy generation
Per unit benefit
Discounting Factor

Rs Lakh
Rs Lakh
MU
Rs/Unit

1
2.64%
21.91

393.09
136.05
1.95
6.97
1.00

329.68
114.10
3.90
2.92
0.95

Tax Benefit Levellised


18.45
Electricity Generation (Levellised)3.72
Levellised benefit
0.50 Rs/Unit

71

Annexure2 B
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
%
%
Years
Rs Lacs/MW
Years

1
45%
1%
0.00%
35
754.547
13

Debt

Equity

Total Debt Amount


Total Equity Amout

Rs Lacs
Rs Lacs

528.183
226.364

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

Rs Lacs
years
years
%

528.18
0
12
12.76%

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

Rs Lacs

226.36
16%
20%
24.00%
22.86%
10.64%

Income Tax

34.610%

Depreciation Rate for first 12 years


Depreciation Rate 13th year onwards

%
%

5.83%
0.87%

Debt: Equity
70%
30%

Debt Component

Equity Component

% p.a
% p.a

Financial Assumptions
Depreciation

Working Capital

For Fixed Charges


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

Months
Months

Intrest On Working Capital

O&M Expenses (2016-17)


Total O & M Expenses Escalation
O&M Expenses (2012-13)

Rs Lacs
%

1
15%
2
13.26%

Operation & Maintenance


22.49
5.72%
18.00

72

Determination of Tariff Component:


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

1
1
3.90

Fixed Cost
Unit
Year--->
1
22.49
O&M Expenses
Rs Lakh
43.99
Depreciation
Rs Lakh
64.60
Interest on term loan Rs Lakh
4.70
Interest on working Capital
Rs Lakh
45.27
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
181.04
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised 1
0.58
1.02
O&M expn
Rs/kWh
1.13
0.86
Depreciation
Rs/kWh
1.66
0.75
Int. on term loan
Rs/kWh
0.12
0.12
Int. on working capital Rs/kWh
1.16
1.24
RoE
Rs/kWh
Total COG
Rs/kWh
3.99
4.64
Levellised
Discount Factor
1
Levellised Tariff
3.99
Rs/Unit

2
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

36
1
3.90

2
23.77
43.99
58.98
4.64
45.27
176.65

3
25.13
43.99
53.36
4.59
45.27
172.34

4
26.57
43.99
47.75
4.54
45.27
168.11

5
28.09
43.99
42.13
4.49
45.27
163.97

6
29.70
43.99
36.51
4.45
45.27
159.92

7
31.39
43.99
30.89
4.42
45.27
155.97

8
33.19
43.99
25.28
4.39
45.27
152.12

9
35.09
43.99
19.66
4.37
45.27
148.38

10
37.10
43.99
14.04
4.35
45.27
144.75

11
39.22
43.99
8.43
4.54
54.33
150.50

12
41.46
43.99
2.81
4.53
54.33
147.12

13
43.83
6.57
0.00
3.75
54.33
108.49

14
46.34
6.57
0.00
3.89
54.33
111.13

15
48.99
6.57
0.00
4.03
54.33
113.93

16
51.79
6.57
0.00
4.19
54.33
116.88

17
54.75
6.57
0.00
4.35
54.33
120.00

18
57.89
6.57
0.00
4.52
54.33
123.30

19
61.20
6.57
0.00
4.70
54.33
126.79

20
64.70
6.57
0.00
4.89
54.33
130.49

21
68.40
6.57
0.00
5.09
54.33
134.39

22
72.31
6.57
0.00
5.30
54.33
138.51

23
76.45
6.57
0.00
5.52
54.33
142.87

24
80.82
6.57
0.00
5.76
54.33
147.48

25
85.44
6.57
0.00
6.01
54.33
152.36

26
90.33
6.57
0.00
6.28
54.33
157.51

27
95.50
6.57
0.00
6.56
54.33
162.96

28
100.96
6.57
0.00
6.85
54.33
168.71

29
106.73
6.57
0.00
7.17
54.33
174.80

30
112.84
6.57
0.00
7.50
54.33
181.24

31
119.29
6.57
0.00
7.85
54.33
188.04

32
126.12
6.57
0.00
8.22
54.33
195.24

33
133.33
6.57
0.00
8.61
54.33
202.84

34
140.96
6.57
0.00
9.02
54.33
210.88

35
149.02
6.57
0.00
9.46
54.33
219.38

2
0.61
1.13
1.51
0.12
1.16
4.53

3
0.64
1.13
1.37
0.12
1.16
4.42

4
0.68
1.13
1.22
0.12
1.16
4.31

5
0.72
1.13
1.08
0.12
1.16
4.20

6
0.76
1.13
0.94
0.11
1.16
4.10

7
0.80
1.13
0.79
0.11
1.16
4.00

8
0.85
1.13
0.65
0.11
1.16
3.90

9
0.90
1.13
0.50
0.11
1.16
3.80

10
0.95
1.13
0.36
0.11
1.16
3.71

11
1.00
1.13
0.22
0.12
1.39
3.86

12
1.06
1.13
0.07
0.12
1.39
3.77

13
1.12
0.17
0.00
0.10
1.39
2.78

14
1.19
0.17
0.00
0.10
1.39
2.85

15
1.26
0.17
0.00
0.10
1.39
2.92

16
1.33
0.17
0.00
0.11
1.39
2.99

17
1.40
0.17
0.00
0.11
1.39
3.07

18
1.48
0.17
0.00
0.12
1.39
3.16

19
1.57
0.17
0.00
0.12
1.39
3.25

20
1.66
0.17
0.00
0.13
1.39
3.34

21
1.75
0.17
0.00
0.13
1.39
3.44

22
1.85
0.17
0.00
0.14
1.39
3.55

23
1.96
0.17
0.00
0.14
1.39
3.66

24
2.07
0.17
0.00
0.15
1.39
3.78

25
2.19
0.17
0.00
0.15
1.39
3.90

26
2.31
0.17
0.00
0.16
1.39
4.04

27
2.45
0.17
0.00
0.17
1.39
4.18

28
2.59
0.17
0.00
0.18
1.39
4.32

29
2.73
0.17
0.00
0.18
1.39
4.48

30
2.89
0.17
0.00
0.19
1.39
4.64

31
3.06
0.17
0.00
0.20
1.39
4.82

32
3.23
0.17
0.00
0.21
1.39
5.00

33
3.42
0.17
0.00
0.22
1.39
5.20

34
3.61
0.17
0.00
0.23
1.39
5.40

35
3.82
0.17
0.00
0.24
1.39
5.62

0.904

0.817

0.738

0.667

0.603

0.545

2
5.28%
39.84

3
5.28%
39.84

4
5.28%
39.84

5
5.28%
39.84

6
5.28%
39.84

7
5.28%
39.84

100.00% 50.00%
50% 45.00%
50%
5%
377.27 339.55

5.00%
4.00%
1.00%
30.18

1.00%
0.80%
0.20%
6.04

0.20%
0.16%
0.04%
1.21

0.04%
0.03%
0.01%
0.24

-9.66
-3.34
3.90
-0.09
0.86

-33.80
-11.70
3.90
-0.30
0.78

-38.63
-13.37
3.90
-0.34
0.70

-39.60
-13.71
3.90
-0.35
0.63

0.493

0.445

0.402

0.364

0.329

0.297

0.269

0.243

0.219

0.198

0.179

0.162

0.146

0.132

0.120

0.108

0.098

0.088

0.080

0.072

0.065

0.059

0.053

0.048

0.044

8
5.28%
39.84

9
5.28%
39.84

10
5.28%
39.84

11
5.28%
39.84

12
5.28%
39.84

13
5.28%
39.84

14
5.28%
39.84

15
5.28%
39.84

16
5.28%
39.84

17
5.28%
39.84

18
2.88%
21.73

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

0.01%
0.01%
0.00%
0.05

0.00%
0.00%
0.00%
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

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%
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%
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%
0.00%
0.00%
0.00

0.00%
0.00%
0.00%
0.00

0.00%
0.00%
0.00%
0.00

-39.79
-13.77
3.90
-0.35
0.57

-39.83
-13.79
3.90
-0.35
0.52

0.00
0.00
3.90
0.00
0.47

0.00
0.00
3.90
0.00
0.42

0.00
0.00
3.90
0.00
0.38

0.00
0.00
3.90
0.00
0.35

0.00
0.00
3.90
0.00
0.31

0.00
0.00
3.90
0.00
0.28

0.00
0.00
3.90
0.00
0.26

0.00
0.00
3.90
0.00
0.23

0.00
0.00
3.90
0.00
0.21

0.00
0.00
3.90
0.00
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

0.039

0.036

0.032

33
0.00%
0.00

34
0.00%
0.00

35
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
3.90
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

Determination of Accelerated Depreciation


Depreciation amount
90%
Book Depreciation rate
5.28%
Tax Depreciation rate
80%
Additional depriciation
20.00%
Income Tax (Normal Rates) 34.61%
Capital Cost
754.5
Years------------>
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

Net Depreciation Benefit


Tax Benefit
Energy generation
Per unit benefit
Discounting Factor

Rs Lakh
Rs Lakh
MU
Rs/Unit

1
2.64%
19.92

357.35
123.68
1.95
6.34
1.00

299.71
103.73
3.90
2.66
0.95

Tax Benefit Levellised


16.77
Electricity Generation (Levellised)3.72
Levellised benefit
0.45 Rs/Unit

73

Annexure 2 C
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
%
%
Years
Rs Lacs/MW
Years

1
30%
1%
0.00%
35
646.755
35

Debt

Equity

Total Debt Amount


Total Equity Amout

Rs Lacs
Rs Lacs

452.728
194.026

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

Rs Lacs
years
years
%

452.73
0
12
12.76%

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

Rs Lacs

194.03
16%
20%
24.00%
22.86%
10.64%

Income Tax

34.610%

Depreciation Rate for first 12 years


Depreciation Rate 13th year onwards

%
%

5.83%
0.87%

Debt: Equity
70%
30%

Debt Component

Equity Component

% p.a
% p.a

Financial Assumptions
Depreciation

Working Capital

For Fixed Charges


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

Months
Months

Intrest On Working Capital

O&M Expenses (2016-17)


Total O & M Expenses Escalation
O&M Expenses (2012-13)

Rs Lacs
%

1
15%
2
13.26%

Operation & Maintenance


24.98
5.72%
20.00

74

Determination of Tariff Component:


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

1
1
2.60

Fixed Cost
Unit
Year--->
1
24.98
O&M Expenses
Rs Lakh
37.71
Depreciation
Rs Lakh
55.37
Interest on term loan Rs Lakh
4.34
Interest on working Capital
Rs Lakh
38.81
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
161.20
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised 1
0.96
1.70
O&M expn
Rs/kWh
1.45
1.11
Depreciation
Rs/kWh
2.13
0.96
Int. on term loan
Rs/kWh
0.17
0.18
Int. on working capital Rs/kWh
1.49
1.59
RoE
Rs/kWh
Total COG
Rs/kWh
5.54
6.20
Levellised
Discount Factor
1
Levellised Tariff
5.54
Rs/Unit

2
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

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

36
1
2.60

2
26.41
37.71
50.55
4.30
38.81
157.78

3
27.92
37.71
45.74
4.28
38.81
154.45

4
29.52
37.71
40.92
4.26
38.81
151.21

5
31.21
37.71
36.11
4.24
38.81
148.07

6
32.99
37.71
31.30
4.23
38.81
145.03

7
34.88
37.71
26.48
4.22
38.81
142.09

8
36.88
37.71
21.67
4.22
38.81
139.27

9
38.99
37.71
16.85
4.23
38.81
136.57

10
41.22
37.71
12.04
4.24
38.81
134.00

11
43.57
37.71
7.22
4.43
46.57
139.50

12
46.07
37.71
2.41
4.46
46.57
137.20

13
48.70
5.64
-2.41
3.77
46.57
102.26

14
51.49
5.64
0.00
3.97
46.57
107.66

15
54.43
5.64
0.00
4.13
46.57
110.77

16
57.55
5.64
0.00
4.30
46.57
114.05

17
60.84
5.64
0.00
4.48
46.57
117.52

18
64.32
5.64
0.00
4.67
46.57
121.19

19
68.00
5.64
0.00
4.87
46.57
125.07

20
71.89
5.64
0.00
5.08
46.57
129.17

21
76.00
5.64
0.00
5.30
46.57
133.50

22
80.35
5.64
0.00
5.54
46.57
138.08

23
84.94
5.64
0.00
5.79
46.57
142.93

24
89.80
5.64
0.00
6.05
46.57
148.05

25
94.94
5.64
0.00
6.33
46.57
153.47

26
100.37
5.64
0.00
6.62
46.57
159.19

27
106.11
5.64
0.00
6.94
46.57
165.24

28
112.18
5.64
0.00
7.26
46.57
171.64

29
118.59
5.64
0.00
7.61
46.57
178.41

30
125.38
5.64
0.00
7.98
46.57
185.56

31
132.55
5.64
0.00
8.37
46.57
193.12

32
140.13
5.64
0.00
8.78
46.57
201.11

33
148.15
5.64
0.00
9.22
46.57
209.56

34
156.62
5.64
0.00
9.68
46.57
218.50

35
165.58
5.64
0.00
10.16
46.57
227.94

2
1.02
1.45
1.94
0.17
1.49
6.06

3
1.07
1.45
1.76
0.16
1.49
5.94

4
1.13
1.45
1.57
0.16
1.49
5.81

5
1.20
1.45
1.39
0.16
1.49
5.69

6
1.27
1.45
1.20
0.16
1.49
5.57

7
1.34
1.45
1.02
0.16
1.49
5.46

8
1.42
1.45
0.83
0.16
1.49
5.35

9
1.50
1.45
0.65
0.16
1.49
5.25

10
1.58
1.45
0.46
0.16
1.49
5.15

11
1.67
1.45
0.28
0.17
1.79
5.36

12
1.77
1.45
0.09
0.17
1.79
5.27

13
1.87
0.22
-0.09
0.14
1.79
3.93

14
1.98
0.22
0.00
0.15
1.79
4.14

15
2.09
0.22
0.00
0.16
1.79
4.26

16
2.21
0.22
0.00
0.17
1.79
4.38

17
2.34
0.22
0.00
0.17
1.79
4.52

18
2.47
0.22
0.00
0.18
1.79
4.66

19
2.61
0.22
0.00
0.19
1.79
4.81

20
2.76
0.22
0.00
0.20
1.79
4.96

21
2.92
0.22
0.00
0.20
1.79
5.13

22
3.09
0.22
0.00
0.21
1.79
5.31

23
3.26
0.22
0.00
0.22
1.79
5.49

24
3.45
0.22
0.00
0.23
1.79
5.69

25
3.65
0.22
0.00
0.24
1.79
5.90

26
3.86
0.22
0.00
0.25
1.79
6.12

27
4.08
0.22
0.00
0.27
1.79
6.35

28
4.31
0.22
0.00
0.28
1.79
6.60

29
4.56
0.22
0.00
0.29
1.79
6.86

30
4.82
0.22
0.00
0.31
1.79
7.13

31
5.09
0.22
0.00
0.32
1.79
7.42

32
5.39
0.22
0.00
0.34
1.79
7.73

33
5.69
0.22
0.00
0.35
1.79
8.05

34
6.02
0.22
0.00
0.37
1.79
8.40

35
6.36
0.22
0.00
0.39
1.79
8.76

0.904

0.817

0.738

0.667

0.603

0.545

2
5.28%
34.15

3
5.28%
34.15

4
5.28%
34.15

5
5.28%
34.15

6
5.28%
34.15

7
5.28%
34.15

100.00% 50.00%
50% 45.00%
50%
5%
323.38 291.04

5.00%
4.00%
1.00%
25.87

1.00%
0.80%
0.20%
5.17

0.20%
0.16%
0.04%
1.03

0.04%
0.03%
0.01%
0.21

-8.28
-2.87
2.60
-0.11
0.86

-28.97
-10.03
2.60
-0.39
0.78

-33.11
-11.46
2.60
-0.44
0.70

-33.94
-11.75
2.60
-0.45
0.63

0.493

0.445

0.402

0.364

0.329

0.297

0.269

0.243

0.219

0.198

0.179

0.162

0.146

0.132

0.120

0.108

0.098

0.088

0.080

0.072

0.065

0.059

0.053

0.048

0.044

8
5.28%
34.15

9
5.28%
34.15

10
5.28%
34.15

11
5.28%
34.15

12
5.28%
34.15

13
5.28%
34.15

14
5.28%
34.15

15
5.28%
34.15

16
5.28%
34.15

17
5.28%
34.15

18
2.88%
18.63

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

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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%
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%
0.00%
0.00%
0.00

0.00%
0.00%
0.00%
0.00

0.00%
0.00%
0.00%
0.00

-34.11
-11.80
2.60
-0.45
0.57

-34.14
-11.82
2.60
-0.45
0.52

0.00
0.00
2.60
0.00
0.47

0.00
0.00
2.60
0.00
0.42

0.00
0.00
2.60
0.00
0.38

0.00
0.00
2.60
0.00
0.35

0.00
0.00
2.60
0.00
0.31

0.00
0.00
2.60
0.00
0.28

0.00
0.00
2.60
0.00
0.26

0.00
0.00
2.60
0.00
0.23

0.00
0.00
2.60
0.00
0.21

0.00
0.00
2.60
0.00
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

0.039

0.036

0.032

33
0.00%
0.00

34
0.00%
0.00

35
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
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

Determination of Accelerated Depreciation


Depreciation amount
90%
Book Depreciation rate
5.28%
Tax Depreciation rate
80%
Additional depriciation
20.00%
Income Tax (Normal Rates) 34.61%
Capital Cost
646.8
Years------------>
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

Net Depreciation Benefit


Tax Benefit
Energy generation
Per unit benefit
Discounting Factor

Rs Lakh
Rs Lakh
MU
Rs/Unit

1
2.64%
17.07

306.30
106.01
1.30
8.15
1.00

256.89
88.91
2.60
3.42
0.95

Tax Benefit Levellised


14.37
Electricity Generation (Levellised)2.48
Levellised benefit
0.58 Rs/Unit

75

Annexure 2 D
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
%
%
Years
Rs Lacs/MW
Years

1
30%
1%
0.00%
35
592.859
13

Debt

Equity

Total Debt Amount


Total Equity Amout

Rs Lacs
Rs Lacs

415.001
177.858

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

Rs Lacs
years
years
%

415.00
0
12
12.76%

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

Rs Lacs

177.86
16%
20%
24.00%
22.86%
10.64%

Income Tax

34.610%

Depreciation Rate for first 12 years


Depreciation Rate 13th year onwards

%
%

5.83%
0.87%

Debt: Equity
70%
30%

Debt Component

Equity Component

% p.a
% p.a

Financial Assumptions
Depreciation

Working Capital

For Fixed Charges


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

Months
Months

Intrest On Working Capital

O&M Expenses (2016-17)


Total O & M Expenses Escalation
O&M Expenses (2012-13)

Rs Lacs
%

1
15%
2
13.26%

Operation & Maintenance


17.49
5.72%
14.00

76

Determination of Tariff Component:


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

1
1
2.60

Fixed Cost
Unit
Year--->
1
17.49
O&M Expenses
Rs Lakh
34.56
Depreciation
Rs Lakh
50.75
Interest on term loan Rs Lakh
3.68
Interest on working Capital
Rs Lakh
35.57
Return on Equity
Rs Lakh
Total Fixed Cost
Rs Lakh
142.06
Levallised tariff corresponding to Useful life
Per Unit Cost of Generation
Unit
Levellised 1
0.67
1.19
O&M expn
Rs/kWh
1.33
1.02
Depreciation
Rs/kWh
1.95
0.88
Int. on term loan
Rs/kWh
0.14
0.14
Int. on working capital Rs/kWh
1.37
1.46
RoE
Rs/kWh
Total COG
Rs/kWh
4.69
5.46
Levellised
Discount Factor
1
Levellised Tariff
4.69
Rs/Unit

2
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

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

36
1
2.60

2
18.49
34.56
46.34
3.64
35.57
138.60

3
19.55
34.56
41.93
3.59
35.57
135.20

4
20.66
34.56
37.51
3.55
35.57
131.87

5
21.85
34.56
33.10
3.52
35.57
128.60

6
23.10
34.56
28.69
3.49
35.57
125.41

7
24.42
34.56
24.27
3.46
35.57
122.28

8
25.81
34.56
19.86
3.43
35.57
119.24

9
27.29
34.56
15.45
3.41
35.57
116.29

10
28.85
34.56
11.03
3.40
35.57
113.42

11
30.50
34.56
6.62
3.55
42.69
117.92

12
32.25
34.56
2.21
3.55
42.69
115.25

13
34.09
5.17
0.00
2.93
42.69
84.87

14
36.04
5.17
0.00
3.04
42.69
86.93

15
38.10
5.17
0.00
3.15
42.69
89.10

16
40.28
5.17
0.00
3.27
42.69
91.40

17
42.59
5.17
0.00
3.39
42.69
93.83

18
45.02
5.17
0.00
3.52
42.69
96.40

19
47.60
5.17
0.00
3.66
42.69
99.11

20
50.32
5.17
0.00
3.81
42.69
101.98

21
53.20
5.17
0.00
3.97
42.69
105.02

22
56.24
5.17
0.00
4.13
42.69
108.23

23
59.46
5.17
0.00
4.31
42.69
111.62

24
62.86
5.17
0.00
4.49
42.69
115.20

25
66.46
5.17
0.00
4.69
42.69
118.99

26
70.26
5.17
0.00
4.89
42.69
123.00

27
74.28
5.17
0.00
5.11
42.69
127.24

28
78.52
5.17
0.00
5.34
42.69
131.72

29
83.02
5.17
0.00
5.58
42.69
136.45

30
87.76
5.17
0.00
5.84
42.69
141.46

31
92.78
5.17
0.00
6.11
42.69
146.75

32
98.09
5.17
0.00
6.40
42.69
152.34

33
103.70
5.17
0.00
6.71
42.69
158.26

34
109.63
5.17
0.00
7.03
42.69
164.51

35
115.90
5.17
0.00
7.37
42.69
171.12

2
0.71
1.33
1.78
0.14
1.37
5.33

3
0.75
1.33
1.61
0.14
1.37
5.20

4
0.79
1.33
1.44
0.14
1.37
5.07

5
0.84
1.33
1.27
0.14
1.37
4.94

6
0.89
1.33
1.10
0.13
1.37
4.82

7
0.94
1.33
0.93
0.13
1.37
4.70

8
0.99
1.33
0.76
0.13
1.37
4.58

9
1.05
1.33
0.59
0.13
1.37
4.47

10
1.11
1.33
0.42
0.13
1.37
4.36

11
1.17
1.33
0.25
0.14
1.64
4.53

12
1.24
1.33
0.08
0.14
1.64
4.43

13
1.31
0.20
0.00
0.11
1.64
3.26

14
1.39
0.20
0.00
0.12
1.64
3.34

15
1.46
0.20
0.00
0.12
1.64
3.42

16
1.55
0.20
0.00
0.13
1.64
3.51

17
1.64
0.20
0.00
0.13
1.64
3.61

18
1.73
0.20
0.00
0.14
1.64
3.71

19
1.83
0.20
0.00
0.14
1.64
3.81

20
1.93
0.20
0.00
0.15
1.64
3.92

21
2.04
0.20
0.00
0.15
1.64
4.04

22
2.16
0.20
0.00
0.16
1.64
4.16

23
2.29
0.20
0.00
0.17
1.64
4.29

24
2.42
0.20
0.00
0.17
1.64
4.43

25
2.55
0.20
0.00
0.18
1.64
4.57

26
2.70
0.20
0.00
0.19
1.64
4.73

27
2.85
0.20
0.00
0.20
1.64
4.89

28
3.02
0.20
0.00
0.21
1.64
5.06

29
3.19
0.20
0.00
0.21
1.64
5.24

30
3.37
0.20
0.00
0.22
1.64
5.44

31
3.57
0.20
0.00
0.24
1.64
5.64

32
3.77
0.20
0.00
0.25
1.64
5.86

33
3.99
0.20
0.00
0.26
1.64
6.08

34
4.21
0.20
0.00
0.27
1.64
6.32

35
4.45
0.20
0.00
0.28
1.64
6.58

0.904

0.817

0.738

0.667

0.603

0.545

2
5.28%
31.30

3
5.28%
31.30

4
5.28%
31.30

5
5.28%
31.30

6
5.28%
31.30

7
5.28%
31.30

100.00% 50.00%
50% 45.00%
50%
5%
296.43 266.79

5.00%
4.00%
1.00%
23.71

1.00%
0.80%
0.20%
4.74

0.20%
0.16%
0.04%
0.95

0.04%
0.03%
0.01%
0.19

-7.59
-2.63
2.60
-0.10
0.86

-26.56
-9.19
2.60
-0.35
0.78

-30.35
-10.51
2.60
-0.40
0.70

-31.11
-10.77
2.60
-0.41
0.63

0.493

0.445

0.402

0.364

0.329

0.297

0.269

0.243

0.219

0.198

0.179

0.162

0.146

0.132

0.120

0.108

0.098

0.088

0.080

0.072

0.065

0.059

0.053

0.048

0.044

8
5.28%
31.30

9
5.28%
31.30

10
5.28%
31.30

11
5.28%
31.30

12
5.28%
31.30

13
5.28%
31.30

14
5.28%
31.30

15
5.28%
31.30

16
5.28%
31.30

17
5.28%
31.30

18
2.88%
17.07

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

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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%
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%
0.00%
0.00%
0.00

0.00%
0.00%
0.00%
0.00

0.00%
0.00%
0.00%
0.00

-31.26
-10.82
2.60
-0.42
0.57

-31.30
-10.83
2.60
-0.42
0.52

0.00
0.00
2.60
0.00
0.47

0.00
0.00
2.60
0.00
0.42

0.00
0.00
2.60
0.00
0.38

0.00
0.00
2.60
0.00
0.35

0.00
0.00
2.60
0.00
0.31

0.00
0.00
2.60
0.00
0.28

0.00
0.00
2.60
0.00
0.26

0.00
0.00
2.60
0.00
0.23

0.00
0.00
2.60
0.00
0.21

0.00
0.00
2.60
0.00
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

0.039

0.036

0.032

33
0.00%
0.00

34
0.00%
0.00

35
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
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

Determination of Accelerated Depreciation


Depreciation amount
90%
Book Depreciation rate
5.28%
Tax Depreciation rate
80%
Additional depriciation
20.00%
Income Tax (Normal Rates) 34.61%
Capital Cost
592.9
Years------------>
Book Depreciation
Book Depreciation

Unit
%
Rs Lakh

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

Net Depreciation Benefit


Tax Benefit
Energy generation
Per unit benefit
Discounting Factor

Rs Lakh
Rs Lakh
MU
Rs/Unit

1
2.64%
15.65

280.78
97.18
1.30
7.47
1.00

235.48
81.50
2.60
3.13
0.95

Tax Benefit Levellised


13.18
Electricity Generation (Levellised)2.48
Levellised benefit
0.53 Rs/Unit

77

Annexure 3.1 A
Biomass Power Projects (Other than Rice Straw & Juliflore (plantation) based projects) with water cooled
condenser and using Travelling Grate Boiler
Select State

AP

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

559.03

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
391.323
167.710

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

391.323
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

167.710
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)

%
%

80 IA benefits

Yes/No

22.00%
10.64%

34.610%
21.000%
Yes

Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%

5.830%
2.505%
12.00

5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)
Rs Lacs

1
15%
2
4
13.26%
4126
4126
2807.74
3174
5.00%
47.26
5.72%
40.00

78

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
207.82
4.10

2
268.57
4.26

3
282.00
4.47

4
296.10
4.69

5
310.91
4.93

6
326.45
5.18

7
342.77
5.43

8
359.91
5.71

9
377.91
5.99

10
396.80
6.29

11
416.65
6.61

12
437.48
6.94

13
459.35
7.28

14
482.32
7.65

15
506.43
8.03

16
531.76
8.43

17
558.34
8.85

18
586.26
9.30

19
615.57
9.76

20
646.35
10.25

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
32.59
47.86
19.23
33.54
180.49
3.56

2
49.97
32.59
43.70
23.40
33.54
183.20
2.90

3
52.83
32.59
39.54
24.38
33.54
182.87
2.90

4
55.85
32.59
35.37
25.40
33.54
182.76
2.90

5
59.04
32.59
31.21
26.48
33.54
182.87
2.90

6
62.42
32.59
27.05
27.63
33.54
183.23
2.91

7
65.99
32.59
22.89
28.83
33.54
183.85
2.91

8
69.76
32.59
18.73
30.11
33.54
184.73
2.93

9
73.75
32.59
14.57
31.45
33.54
185.90
2.95

10
77.97
32.59
10.40
32.87
33.54
187.38
2.97

11
82.43
32.59
6.24
34.51
40.25
196.03
3.11

12
87.15
32.59
2.08
36.08
40.25
198.16
3.14

13
92.13
14.00
0.00
37.37
40.25
183.76
2.91

14
97.40
14.00
0.00
39.21
40.25
190.87
3.03

15
102.97
14.00
0.00
41.15
40.25
198.38
3.15

16
108.87
14.00
0.00
43.19
40.25
206.31
3.27

17
115.09
14.00
0.00
45.33
40.25
214.68
3.40

18
121.68
14.00
0.00
47.58
40.25
223.51
3.54

19
128.64
14.00
0.00
49.94
40.25
232.83
3.69

20
135.99
14.00
0.00
52.43
40.25
242.68
3.85

Levellised
5.73
1.14
0.47
0.40
0.48
0.57
8.80

1
4.10
0.93
0.64
0.94
0.38
0.66
7.66

2
4.26
0.79
0.52
0.69
0.37
0.53
7.16

3
4.47
0.84
0.52
0.63
0.39
0.53
7.37

4
4.69
0.89
0.52
0.56
0.40
0.53
7.59

5
4.93
0.94
0.52
0.49
0.42
0.53
7.83

6
5.18
0.99
0.52
0.43
0.44
0.53
8.08

7
5.43
1.05
0.52
0.36
0.46
0.53
8.35

8
5.71
1.11
0.52
0.30
0.48
0.53
8.64

9
5.99
1.17
0.52
0.23
0.50
0.53
8.94

10
6.29
1.24
0.52
0.16
0.52
0.53
9.26

11
6.61
1.31
0.52
0.10
0.55
0.64
9.71

12
6.94
1.38
0.52
0.03
0.57
0.64
10.08

13
7.28
1.46
0.22
0.00
0.59
0.64
10.20

14
7.65
1.54
0.22
0.00
0.62
0.64
10.67

15
8.03
1.63
0.22
0.00
0.65
0.64
11.17

16
8.43
1.73
0.22
0.00
0.68
0.64
11.70

17
8.85
1.82
0.22
0.00
0.72
0.64
12.26

18
9.30
1.93
0.22
0.00
0.75
0.64
12.84

19
9.76
2.04
0.22
0.00
0.79
0.64
13.45

20
10.25
2.16
0.22
0.00
0.83
0.64
14.10

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.10 Rs/Kwh
3.07 Rs/Kwh
7.17 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
559.033

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

Unit
%
Rs Lakh

1
2.64%
14.76

2
5.28%
29.52

3
5.28%
29.52

4
5.28%
29.52

5
5.28%
29.52

6
5.28%
29.52

7
5.28%
29.52

8
5.28%
29.52

9
5.28%
29.52

10
5.28%
29.52

11
5.28%
29.52

12
5.28%
29.52

13
5.28%
29.52

14
5.28%
29.52

15
5.28%
29.52

16
5.28%
29.52

17
5.28%
29.52

18
2.88%
16.10

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
279.52

50.00%
45.00%
5%
251.56

5.00%
4.00%
1.00%
22.36

1.00%
0.80%
0.20%
4.47

0.20%
0.16%
0.04%
0.89

0.04%
0.03%
0.01%
0.18

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

264.76
91.63
2.53
3.62

222.05
76.85
6.31
1.22

-7.16
-2.48
6.31
-0.04

-25.04
-8.67
6.31
-0.14

-28.62
-9.91
6.31
-0.16

-29.34
-10.15
6.31
-0.16

-29.48
-10.20
6.31
-0.16

-29.51
-10.21
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-16.10
-5.57
6.31
-0.09

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

0.63

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

0.18

(Rs/kWh)

79

Annexure 3.1 B
Select State

Harayana

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

559.03

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
391.32
167.71

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

391.32
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

167.71
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)

%
%

80 IA benefits

Yes/No

22.00%
10.64%

34.610%
21.000%
Yes

Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%

5.83%
2.51%
1200.00%

5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)
Rs Lacs

1
15%
2
4
13.26%
4126
4126
3195.86
3174
5.00%
47.26
5.72%
40.00

80

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
236.55
4.67

2
305.70
4.85

3
320.98
5.09

4
337.03
5.34

5
353.88
5.61

6
371.58
5.89

7
390.16
6.19

8
409.66
6.50

9
430.15
6.82

10
451.66
7.16

11
474.24
7.52

12
497.95
7.89

13
522.85
8.29

14
548.99
8.70

15
576.44
9.14

16
605.26
9.60

17
635.52
10.08

18
667.30
10.58

19
700.67
11.11

20
735.70
11.66

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
32.59
47.86
21.18
33.54
182.44
3.60

2
49.97
32.59
43.70
25.92
33.54
185.72
2.94

3
52.83
32.59
39.54
27.02
33.54
185.51
2.94

4
55.85
32.59
35.37
28.18
33.54
185.53
2.94

5
59.04
32.59
31.21
29.40
33.54
185.79
2.95

6
62.42
32.59
27.05
30.69
33.54
186.29
2.95

7
65.99
32.59
22.89
32.05
33.54
187.06
2.97

8
69.76
32.59
18.73
33.48
33.54
188.11
2.98

9
73.75
32.59
14.57
34.99
33.54
189.45
3.00

10
77.97
32.59
10.40
36.59
33.54
191.10
3.03

11
82.43
32.59
6.24
38.42
40.25
199.93
3.17

12
87.15
32.59
2.08
40.19
40.25
202.26
3.21

13
92.13
14.00
0.00
41.68
40.25
188.06
2.98

14
97.40
14.00
0.00
43.74
40.25
195.39
3.10

15
102.97
14.00
0.00
45.90
40.25
203.13
3.22

16
108.87
14.00
0.00
48.17
40.25
211.29
3.35

17
115.09
14.00
0.00
50.56
40.25
219.91
3.49

18
121.68
14.00
0.00
53.07
40.25
229.00
3.63

19
128.64
14.00
0.00
55.71
40.25
238.60
3.78

20
135.99
14.00
0.00
58.49
40.25
248.74
3.94

Levellised
6.52
1.14
0.47
0.40
0.54
0.57
9.64

1
4.67
0.93
0.64
0.94
0.42
0.66
8.27

2
4.85
0.79
0.52
0.69
0.41
0.53
7.79

3
5.09
0.84
0.52
0.63
0.43
0.53
8.03

4
5.34
0.89
0.52
0.56
0.45
0.53
8.29

5
5.61
0.94
0.52
0.49
0.47
0.53
8.56

6
5.89
0.99
0.52
0.43
0.49
0.53
8.84

7
6.19
1.05
0.52
0.36
0.51
0.53
9.15

8
6.50
1.11
0.52
0.30
0.53
0.53
9.48

9
6.82
1.17
0.52
0.23
0.55
0.53
9.82

10
7.16
1.24
0.52
0.16
0.58
0.53
10.19

11
7.52
1.31
0.52
0.10
0.61
0.64
10.69

12
7.89
1.38
0.52
0.03
0.64
0.64
11.10

13
8.29
1.46
0.22
0.00
0.66
0.64
11.27

14
8.70
1.54
0.22
0.00
0.69
0.64
11.80

15
9.14
1.63
0.22
0.00
0.73
0.64
12.36

16
9.60
1.73
0.22
0.00
0.76
0.64
12.95

17
10.08
1.82
0.22
0.00
0.80
0.64
13.56

18
10.58
1.93
0.22
0.00
0.84
0.64
14.21

19
11.11
2.04
0.22
0.00
0.88
0.64
14.89

20
11.66
2.16
0.22
0.00
0.93
0.64
15.61

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.67 Rs/Kwh
3.13 Rs/Kwh
7.79 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
559.033

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

Unit
%
Rs Lakh

1
2.64%
14.76

2
5.28%
29.52

3
5.28%
29.52

4
5.28%
29.52

5
5.28%
29.52

6
5.28%
29.52

7
5.28%
29.52

8
5.28%
29.52

9
5.28%
29.52

10
5.28%
29.52

11
5.28%
29.52

12
5.28%
29.52

13
5.28%
29.52

14
5.28%
29.52

15
5.28%
29.52

16
5.28%
29.52

17
5.28%
29.52

18
2.88%
16.10

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
279.52

50.00%
45.00%
5%
251.56

5.00%
4.00%
1.00%
22.36

1.00%
0.80%
0.20%
4.47

0.20%
0.16%
0.04%
0.89

0.04%
0.03%
0.01%
0.18

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

264.76
91.63
2.53
3.62

222.05
76.85
6.31
1.22

-7.16
-2.48
6.31
-0.04

-25.04
-8.67
6.31
-0.14

-28.62
-9.91
6.31
-0.16

-29.34
-10.15
6.31
-0.16

-29.48
-10.20
6.31
-0.16

-29.51
-10.21
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-16.10
-5.57
6.31
-0.09

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

0.63

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

0.18

(Rs/kWh)

81

Annexure 3.1. C
Select State

Maharashtra

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

559.03

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
391.32
167.71

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

391.32
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

167.71
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income Tax
MAT Rate (for first 10 years)

%
%

80 IA benefits

Yes/No

22.00%
10.64%

34.610%
21.000%
Yes

Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years for 5.83%
depreciation
rate%

5.83%
2.51%
1200.00%

5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)
Rs Lacs

1
15%
2
4
13.26%
4126
4126
3268.62
3174
5.00%
47.26
5.72%
40.00

82

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
241.94
4.77

2
312.66
4.96

3
328.29
5.21

4
344.71
5.47

5
361.94
5.74

6
380.04
6.03

7
399.04
6.33

8
418.99
6.64

9
439.94
6.98

10
461.94
7.32

11
485.04
7.69

12
509.29
8.07

13
534.75
8.48

14
561.49
8.90

15
589.56
9.35

16
619.04
9.81

17
649.99
10.31

18
682.49
10.82

19
716.62
11.36

20
752.45
11.93

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
32.59
47.86
21.55
33.54
182.80
3.61

2
49.97
32.59
43.70
26.39
33.54
186.19
2.95

3
52.83
32.59
39.54
27.51
33.54
186.01
2.95

4
55.85
32.59
35.37
28.70
33.54
186.05
2.95

5
59.04
32.59
31.21
29.95
33.54
186.33
2.95

6
62.42
32.59
27.05
31.26
33.54
186.86
2.96

7
65.99
32.59
22.89
32.65
33.54
187.66
2.98

8
69.76
32.59
18.73
34.11
33.54
188.74
2.99

9
73.75
32.59
14.57
35.66
33.54
190.11
3.01

10
77.97
32.59
10.40
37.28
33.54
191.79
3.04

11
82.43
32.59
6.24
39.15
40.25
200.67
3.18

12
87.15
32.59
2.08
40.95
40.25
203.03
3.22

13
92.13
14.00
0.00
42.48
40.25
188.87
2.99

14
97.40
14.00
0.00
44.58
40.25
196.24
3.11

15
102.97
14.00
0.00
46.79
40.25
204.02
3.23

16
108.87
14.00
0.00
49.11
40.25
212.23
3.36

17
115.09
14.00
0.00
51.54
40.25
220.89
3.50

18
121.68
14.00
0.00
54.10
40.25
230.03
3.65

19
128.64
14.00
0.00
56.80
40.25
239.69
3.80

20
135.99
14.00
0.00
59.62
40.25
249.87
3.96

Levellised
6.67
1.14
0.47
0.40
0.55
0.57
9.80

1
4.77
0.93
0.64
0.94
0.43
0.66
8.38

2
4.96
0.79
0.52
0.69
0.42
0.53
7.91

3
5.21
0.84
0.52
0.63
0.44
0.53
8.15

4
5.47
0.89
0.52
0.56
0.45
0.53
8.42

5
5.74
0.94
0.52
0.49
0.47
0.53
8.69

6
6.03
0.99
0.52
0.43
0.50
0.53
8.99

7
6.33
1.05
0.52
0.36
0.52
0.53
9.30

8
6.64
1.11
0.52
0.30
0.54
0.53
9.64

9
6.98
1.17
0.52
0.23
0.57
0.53
9.99

10
7.32
1.24
0.52
0.16
0.59
0.53
10.36

11
7.69
1.31
0.52
0.10
0.62
0.64
10.87

12
8.07
1.38
0.52
0.03
0.65
0.64
11.29

13
8.48
1.46
0.22
0.00
0.67
0.64
11.47

14
8.90
1.54
0.22
0.00
0.71
0.64
12.01

15
9.35
1.63
0.22
0.00
0.74
0.64
12.58

16
9.81
1.73
0.22
0.00
0.78
0.64
13.18

17
10.31
1.82
0.22
0.00
0.82
0.64
13.81

18
10.82
1.93
0.22
0.00
0.86
0.64
14.47

19
11.36
2.04
0.22
0.00
0.90
0.64
15.16

20
11.93
2.16
0.22
0.00
0.95
0.64
15.89

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.77 Rs/Kwh
3.14 Rs/Kwh
7.91 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
559.033

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

Unit
%
Rs Lakh

1
2.64%
14.76

2
5.28%
29.52

3
5.28%
29.52

4
5.28%
29.52

5
5.28%
29.52

6
5.28%
29.52

7
5.28%
29.52

8
5.28%
29.52

9
5.28%
29.52

10
5.28%
29.52

11
5.28%
29.52

12
5.28%
29.52

13
5.28%
29.52

14
5.28%
29.52

15
5.28%
29.52

16
5.28%
29.52

17
5.28%
29.52

18
2.88%
16.10

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
279.52

50.00%
45.00%
5%
251.56

5.00%
4.00%
1.00%
22.36

1.00%
0.80%
0.20%
4.47

0.20%
0.16%
0.04%
0.89

0.04%
0.03%
0.01%
0.18

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

264.76
91.63
2.53
3.62

222.05
76.85
6.31
1.22

-7.16
-2.48
6.31
-0.04

-25.04
-8.67
6.31
-0.14

-28.62
-9.91
6.31
-0.16

-29.34
-10.15
6.31
-0.16

-29.48
-10.20
6.31
-0.16

-29.51
-10.21
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-16.10
-5.57
6.31
-0.09

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

0.63

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

0.18

(Rs/kWh)

83

Annexure 3.1D
Select State

Punjab

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

559.03

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
391.32
167.71

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

391.32
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

167.71
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income Tax

22.00%
10.64%

34.61%

Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%

5.83%
2.51%
1200.00%

5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)
Rs Lacs

1
15%
2
4
13.26%
4126
4126
3342.60
3174
5.00%
47.26
5.72%
40.00

84

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
247.41
4.88

2
319.73
5.07

3
335.72
5.32

4
352.51
5.59

5
370.13
5.87

6
388.64
6.16

7
408.07
6.47

8
428.48
6.79

9
449.90
7.13

10
472.39
7.49

11
496.01
7.86

12
520.81
8.26

13
546.86
8.67

14
574.20
9.10

15
602.91
9.56

16
633.05
10.04

17
664.71
10.54

18
697.94
11.07

19
732.84
11.62

20
769.48
12.20

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
32.59
47.86
21.92
33.54
183.17
3.61

2
49.97
32.59
43.70
26.87
33.54
186.67
2.96

3
52.83
32.59
39.54
28.02
33.54
186.51
2.96

4
55.85
32.59
35.37
29.23
33.54
186.58
2.96

5
59.04
32.59
31.21
30.50
33.54
186.89
2.96

6
62.42
32.59
27.05
31.84
33.54
187.45
2.97

7
65.99
32.59
22.89
33.26
33.54
188.27
2.99

8
69.76
32.59
18.73
34.76
33.54
189.38
3.00

9
73.75
32.59
14.57
36.33
33.54
190.78
3.02

10
77.97
32.59
10.40
37.99
33.54
192.50
3.05

11
82.43
32.59
6.24
39.89
40.25
201.41
3.19

12
87.15
32.59
2.08
41.74
40.25
203.81
3.23

13
92.13
14.00
0.00
43.30
40.25
189.69
3.01

14
97.40
14.00
0.00
45.44
40.25
197.10
3.13

15
102.97
14.00
0.00
47.69
40.25
204.92
3.25

16
108.87
14.00
0.00
50.06
40.25
213.18
3.38

17
115.09
14.00
0.00
52.54
40.25
221.89
3.52

18
121.68
14.00
0.00
55.15
40.25
231.08
3.66

19
128.64
14.00
0.00
57.90
40.25
240.79
3.82

20
135.99
14.00
0.00
60.78
40.25
251.03
3.98

Levellised
6.82
1.14
0.47
0.40
0.56
0.57
9.96

1
4.88
0.93
0.64
0.94
0.43
0.66
8.50

2
5.07
0.79
0.52
0.69
0.43
0.53
8.03

3
5.32
0.84
0.52
0.63
0.44
0.53
8.28

4
5.59
0.89
0.52
0.56
0.46
0.53
8.55

5
5.87
0.94
0.52
0.49
0.48
0.53
8.83

6
6.16
0.99
0.52
0.43
0.50
0.53
9.13

7
6.47
1.05
0.52
0.36
0.53
0.53
9.45

8
6.79
1.11
0.52
0.30
0.55
0.53
9.80

9
7.13
1.17
0.52
0.23
0.58
0.53
10.16

10
7.49
1.24
0.52
0.16
0.60
0.53
10.54

11
7.86
1.31
0.52
0.10
0.63
0.64
11.06

12
8.26
1.38
0.52
0.03
0.66
0.64
11.49

13
8.67
1.46
0.22
0.00
0.69
0.64
11.68

14
9.10
1.54
0.22
0.00
0.72
0.64
12.23

15
9.56
1.63
0.22
0.00
0.76
0.64
12.81

16
10.04
1.73
0.22
0.00
0.79
0.64
13.42

17
10.54
1.82
0.22
0.00
0.83
0.64
14.06

18
11.07
1.93
0.22
0.00
0.87
0.64
14.73

19
11.62
2.04
0.22
0.00
0.92
0.64
15.44

20
12.20
2.16
0.22
0.00
0.96
0.64
16.18

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.88 Rs/Kwh
3.15 Rs/Kwh
8.03 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
559.033

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

Unit
%
Rs Lakh

1
2.64%
14.76

2
5.28%
29.52

3
5.28%
29.52

4
5.28%
29.52

5
5.28%
29.52

6
5.28%
29.52

7
5.28%
29.52

8
5.28%
29.52

9
5.28%
29.52

10
5.28%
29.52

11
5.28%
29.52

12
5.28%
29.52

13
5.28%
29.52

14
5.28%
29.52

15
5.28%
29.52

16
5.28%
29.52

17
5.28%
29.52

18
2.88%
16.10

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
279.52

50.00%
45.00%
5%
251.56

5.00%
4.00%
1.00%
22.36

1.00%
0.80%
0.20%
4.47

0.20%
0.16%
0.04%
0.89

0.04%
0.03%
0.01%
0.18

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

264.76
91.63
2.53
3.62

222.05
76.85
6.31
1.22

-7.16
-2.48
6.31
-0.04

-25.04
-8.67
6.31
-0.14

-28.62
-9.91
6.31
-0.16

-29.34
-10.15
6.31
-0.16

-29.48
-10.20
6.31
-0.16

-29.51
-10.21
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-16.10
-5.57
6.31
-0.09

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

0.63

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

0.18

(Rs/kWh)

85

Annexure 3.1 E
Select State

Rajasthan

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

559.03

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
391.32
167.71

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

391.32
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

167.71
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income Tax

22.00%
10.64%

34.61%

Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%

5.83%
2.51%
1200.00%

5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)
Rs Lacs

1
15%
2
4
13.26%
4126
4126
2789.54
3174
5.00%
47.26
5.72%
40.00

86

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
206.48
4.07

2
266.83
4.23

3
280.17
4.44

4
294.18
4.66

5
308.89
4.90

6
324.34
5.14

7
340.55
5.40

8
357.58
5.67

9
375.46
5.95

10
394.23
6.25

11
413.94
6.56

12
434.64
6.89

13
456.37
7.24

14
479.19
7.60

15
503.15
7.98

16
528.31
8.38

17
554.73
8.80

18
582.46
9.23

19
611.59
9.70

20
642.16
10.18

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
32.59
47.86
19.14
33.54
180.40
3.56

2
49.97
32.59
43.70
23.29
33.54
183.08
2.90

3
52.83
32.59
39.54
24.25
33.54
182.75
2.90

4
55.85
32.59
35.37
25.27
33.54
182.63
2.90

5
59.04
32.59
31.21
26.35
33.54
182.74
2.90

6
62.42
32.59
27.05
27.48
33.54
183.09
2.90

7
65.99
32.59
22.89
28.68
33.54
183.70
2.91

8
69.76
32.59
18.73
29.95
33.54
184.57
2.93

9
73.75
32.59
14.57
31.28
33.54
185.74
2.94

10
77.97
32.59
10.40
32.69
33.54
187.20
2.97

11
82.43
32.59
6.24
34.33
40.25
195.85
3.11

12
87.15
32.59
2.08
35.89
40.25
197.96
3.14

13
92.13
14.00
0.00
37.17
40.25
183.56
2.91

14
97.40
14.00
0.00
39.00
40.25
190.66
3.02

15
102.97
14.00
0.00
40.93
40.25
198.16
3.14

16
108.87
14.00
0.00
42.95
40.25
206.07
3.27

17
115.09
14.00
0.00
45.08
40.25
214.43
3.40

18
121.68
14.00
0.00
47.32
40.25
223.25
3.54

19
128.64
14.00
0.00
49.67
40.25
232.56
3.69

20
135.99
14.00
0.00
52.15
40.25
242.39
3.84

Levellised
5.69
1.14
0.47
0.40
0.48
0.57
8.76

1
4.07
0.93
0.64
0.94
0.38
0.66
7.63

2
4.23
0.79
0.52
0.69
0.37
0.53
7.13

3
4.44
0.84
0.52
0.63
0.38
0.53
7.34

4
4.66
0.89
0.52
0.56
0.40
0.53
7.56

5
4.90
0.94
0.52
0.49
0.42
0.53
7.79

6
5.14
0.99
0.52
0.43
0.44
0.53
8.05

7
5.40
1.05
0.52
0.36
0.45
0.53
8.31

8
5.67
1.11
0.52
0.30
0.47
0.53
8.60

9
5.95
1.17
0.52
0.23
0.50
0.53
8.90

10
6.25
1.24
0.52
0.16
0.52
0.53
9.22

11
6.56
1.31
0.52
0.10
0.54
0.64
9.67

12
6.89
1.38
0.52
0.03
0.57
0.64
10.03

13
7.24
1.46
0.22
0.00
0.59
0.64
10.15

14
7.60
1.54
0.22
0.00
0.62
0.64
10.62

15
7.98
1.63
0.22
0.00
0.65
0.64
11.12

16
8.38
1.73
0.22
0.00
0.68
0.64
11.64

17
8.80
1.82
0.22
0.00
0.71
0.64
12.19

18
9.23
1.93
0.22
0.00
0.75
0.64
12.77

19
9.70
2.04
0.22
0.00
0.79
0.64
13.38

20
10.18
2.16
0.22
0.00
0.83
0.64
14.02

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.07 Rs/Kwh
3.07 Rs/Kwh
7.14 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
559.033

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

Unit
%
Rs Lakh

1
2.64%
14.76

2
5.28%
29.52

3
5.28%
29.52

4
5.28%
29.52

5
5.28%
29.52

6
5.28%
29.52

7
5.28%
29.52

8
5.28%
29.52

9
5.28%
29.52

10
5.28%
29.52

11
5.28%
29.52

12
5.28%
29.52

13
5.28%
29.52

14
5.28%
29.52

15
5.28%
29.52

16
5.28%
29.52

17
5.28%
29.52

18
2.88%
16.10

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
279.52

50.00%
45.00%
5%
251.56

5.00%
4.00%
1.00%
22.36

1.00%
0.80%
0.20%
4.47

0.20%
0.16%
0.04%
0.89

0.04%
0.03%
0.01%
0.18

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

264.76
91.63
2.53
3.62

222.05
76.85
6.31
1.22

-7.16
-2.48
6.31
-0.04

-25.04
-8.67
6.31
-0.14

-28.62
-9.91
6.31
-0.16

-29.34
-10.15
6.31
-0.16

-29.48
-10.20
6.31
-0.16

-29.51
-10.21
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-16.10
-5.57
6.31
-0.09

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

0.63

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

0.18

(Rs/kWh)

87

Annexure 3.1 F
Select State

TN

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

559.03

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
391.32
167.71

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

391.32
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

167.71
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income Tax

22.00%
10.64%

34.61%

Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%

5.83%
2.51%
1200.00%

5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)
Rs Lacs

1
15%
2
4
13.26%
4126
4126
2761.64
3174
5.00%
47.26
5.72%
40.00

88

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
204.41
4.03

2
264.16
4.19

3
277.37
4.40

4
291.24
4.62

5
305.80
4.85

6
321.09
5.09

7
337.15
5.35

8
354.00
5.61

9
371.70
5.89

10
390.29
6.19

11
409.80
6.50

12
430.29
6.82

13
451.81
7.16

14
474.40
7.52

15
498.12
7.90

16
523.03
8.29

17
549.18
8.71

18
576.64
9.14

19
605.47
9.60

20
635.74
10.08

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
32.59
47.86
19.00
33.54
180.26
3.56

2
49.97
32.59
43.70
23.11
33.54
182.90
2.90

3
52.83
32.59
39.54
24.06
33.54
182.56
2.89

4
55.85
32.59
35.37
25.07
33.54
182.43
2.89

5
59.04
32.59
31.21
26.14
33.54
182.53
2.89

6
62.42
32.59
27.05
27.26
33.54
182.87
2.90

7
65.99
32.59
22.89
28.45
33.54
183.46
2.91

8
69.76
32.59
18.73
29.71
33.54
184.33
2.92

9
73.75
32.59
14.57
31.03
33.54
185.48
2.94

10
77.97
32.59
10.40
32.42
33.54
186.93
2.96

11
82.43
32.59
6.24
34.05
40.25
195.56
3.10

12
87.15
32.59
2.08
35.60
40.25
197.67
3.13

13
92.13
14.00
0.00
36.86
40.25
183.25
2.91

14
97.40
14.00
0.00
38.68
40.25
190.34
3.02

15
102.97
14.00
0.00
40.59
40.25
197.82
3.14

16
108.87
14.00
0.00
42.60
40.25
205.72
3.26

17
115.09
14.00
0.00
44.71
40.25
214.05
3.39

18
121.68
14.00
0.00
46.93
40.25
222.86
3.53

19
128.64
14.00
0.00
49.26
40.25
232.15
3.68

20
135.99
14.00
0.00
51.71
40.25
241.96
3.84

Levellised
5.63
1.14
0.47
0.40
0.48
0.57
8.70

1
4.03
0.93
0.64
0.94
0.37
0.66
7.59

2
4.19
0.79
0.52
0.69
0.37
0.53
7.09

3
4.40
0.84
0.52
0.63
0.38
0.53
7.29

4
4.62
0.89
0.52
0.56
0.40
0.53
7.51

5
4.85
0.94
0.52
0.49
0.41
0.53
7.74

6
5.09
0.99
0.52
0.43
0.43
0.53
7.99

7
5.35
1.05
0.52
0.36
0.45
0.53
8.25

8
5.61
1.11
0.52
0.30
0.47
0.53
8.54

9
5.89
1.17
0.52
0.23
0.49
0.53
8.83

10
6.19
1.24
0.52
0.16
0.51
0.53
9.15

11
6.50
1.31
0.52
0.10
0.54
0.64
9.60

12
6.82
1.38
0.52
0.03
0.56
0.64
9.96

13
7.16
1.46
0.22
0.00
0.58
0.64
10.07

14
7.52
1.54
0.22
0.00
0.61
0.64
10.54

15
7.90
1.63
0.22
0.00
0.64
0.64
11.03

16
8.29
1.73
0.22
0.00
0.68
0.64
11.55

17
8.71
1.82
0.22
0.00
0.71
0.64
12.10

18
9.14
1.93
0.22
0.00
0.74
0.64
12.68

19
9.60
2.04
0.22
0.00
0.78
0.64
13.28

20
10.08
2.16
0.22
0.00
0.82
0.64
13.92

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.03 Rs/Kwh
3.07 Rs/Kwh
7.10 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
559.033

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

Unit
%
Rs Lakh

1
2.64%
14.76

2
5.28%
29.52

3
5.28%
29.52

4
5.28%
29.52

5
5.28%
29.52

6
5.28%
29.52

7
5.28%
29.52

8
5.28%
29.52

9
5.28%
29.52

10
5.28%
29.52

11
5.28%
29.52

12
5.28%
29.52

13
5.28%
29.52

14
5.28%
29.52

15
5.28%
29.52

16
5.28%
29.52

17
5.28%
29.52

18
2.88%
16.10

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
279.52

50.00%
45.00%
5%
251.56

5.00%
4.00%
1.00%
22.36

1.00%
0.80%
0.20%
4.47

0.20%
0.16%
0.04%
0.89

0.04%
0.03%
0.01%
0.18

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

264.76
91.63
2.53
3.62

222.05
76.85
6.31
1.22

-7.16
-2.48
6.31
-0.04

-25.04
-8.67
6.31
-0.14

-28.62
-9.91
6.31
-0.16

-29.34
-10.15
6.31
-0.16

-29.48
-10.20
6.31
-0.16

-29.51
-10.21
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-16.10
-5.57
6.31
-0.09

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

0.63

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

0.18

(Rs/kWh)

89

Annexure 3.1 G
Select State

UP

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

559.03

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
391.32
167.71

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

391.32
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

167.71
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income Tax

22.00%
10.64%

34.61%

Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%

5.83%
2.51%
1200.00%

5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)
Rs Lacs

1
15%
2
4
13.26%
4126
4126
2856.25
3174
5.00%
47.26
5.72%
40.00

90

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
211.41
4.17

2
273.21
4.33

3
286.87
4.55

4
301.22
4.78

5
316.28
5.01

6
332.09
5.27

7
348.70
5.53

8
366.13
5.80

9
384.44
6.10

10
403.66
6.40

11
423.84
6.72

12
445.04
7.06

13
467.29
7.41

14
490.65
7.78

15
515.18
8.17

16
540.94
8.58

17
567.99
9.01

18
596.39
9.46

19
626.21
9.93

20
657.52
10.42

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
32.59
47.86
19.48
33.54
180.73
3.57

2
49.97
32.59
43.70
23.72
33.54
183.52
2.91

3
52.83
32.59
39.54
24.71
33.54
183.20
2.90

4
55.85
32.59
35.37
25.75
33.54
183.10
2.90

5
59.04
32.59
31.21
26.85
33.54
183.24
2.91

6
62.42
32.59
27.05
28.01
33.54
183.61
2.91

7
65.99
32.59
22.89
29.24
33.54
184.25
2.92

8
69.76
32.59
18.73
30.53
33.54
185.15
2.94

9
73.75
32.59
14.57
31.89
33.54
186.35
2.95

10
77.97
32.59
10.40
33.33
33.54
187.84
2.98

11
82.43
32.59
6.24
35.00
40.25
196.52
3.12

12
87.15
32.59
2.08
36.60
40.25
198.67
3.15

13
92.13
14.00
0.00
37.91
40.25
184.30
2.92

14
97.40
14.00
0.00
39.78
40.25
191.44
3.04

15
102.97
14.00
0.00
41.75
40.25
198.97
3.15

16
108.87
14.00
0.00
43.81
40.25
206.93
3.28

17
115.09
14.00
0.00
45.98
40.25
215.33
3.41

18
121.68
14.00
0.00
48.27
40.25
224.20
3.55

19
128.64
14.00
0.00
50.67
40.25
233.56
3.70

20
135.99
14.00
0.00
53.19
40.25
243.44
3.86

Levellised
5.82
1.14
0.47
0.40
0.49
0.57
8.90

1
4.17
0.93
0.64
0.94
0.38
0.66
7.74

2
4.33
0.79
0.52
0.69
0.38
0.53
7.24

3
4.55
0.84
0.52
0.63
0.39
0.53
7.45

4
4.78
0.89
0.52
0.56
0.41
0.53
7.68

5
5.01
0.94
0.52
0.49
0.43
0.53
7.92

6
5.27
0.99
0.52
0.43
0.44
0.53
8.18

7
5.53
1.05
0.52
0.36
0.46
0.53
8.45

8
5.80
1.11
0.52
0.30
0.48
0.53
8.74

9
6.10
1.17
0.52
0.23
0.51
0.53
9.05

10
6.40
1.24
0.52
0.16
0.53
0.53
9.38

11
6.72
1.31
0.52
0.10
0.55
0.64
9.84

12
7.06
1.38
0.52
0.03
0.58
0.64
10.21

13
7.41
1.46
0.22
0.00
0.60
0.64
10.33

14
7.78
1.54
0.22
0.00
0.63
0.64
10.81

15
8.17
1.63
0.22
0.00
0.66
0.64
11.32

16
8.58
1.73
0.22
0.00
0.69
0.64
11.86

17
9.01
1.82
0.22
0.00
0.73
0.64
12.42

18
9.46
1.93
0.22
0.00
0.77
0.64
13.01

19
9.93
2.04
0.22
0.00
0.80
0.64
13.63

20
10.42
2.16
0.22
0.00
0.84
0.64
14.28

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.17 Rs/Kwh
3.08 Rs/Kwh
7.25 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
559.033

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

Unit
%
Rs Lakh

1
2.64%
14.76

2
5.28%
29.52

3
5.28%
29.52

4
5.28%
29.52

5
5.28%
29.52

6
5.28%
29.52

7
5.28%
29.52

8
5.28%
29.52

9
5.28%
29.52

10
5.28%
29.52

11
5.28%
29.52

12
5.28%
29.52

13
5.28%
29.52

14
5.28%
29.52

15
5.28%
29.52

16
5.28%
29.52

17
5.28%
29.52

18
2.88%
16.10

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
279.52

50.00%
45.00%
5%
251.56

5.00%
4.00%
1.00%
22.36

1.00%
0.80%
0.20%
4.47

0.20%
0.16%
0.04%
0.89

0.04%
0.03%
0.01%
0.18

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

264.76
91.63
2.53
3.62

222.05
76.85
6.31
1.22

-7.16
-2.48
6.31
-0.04

-25.04
-8.67
6.31
-0.14

-28.62
-9.91
6.31
-0.16

-29.34
-10.15
6.31
-0.16

-29.48
-10.20
6.31
-0.16

-29.51
-10.21
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-16.10
-5.57
6.31
-0.09

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

0.63

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

0.18

(Rs/kWh)

91

Annexure 3.1.H
Select State

Others

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

559.03

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
391.32
167.71

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

391.32
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

167.71
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income Tax

22.00%
10.64%

34.61%

Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%

5.83%
2.51%
1200.00%

5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)
Rs Lacs

1
15%
2
4
13.26%
4126
4126
3003.01
3174
5.00%
47.26
5.72%
40.00

92

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
222.28
4.39

2
287.25
4.55

3
301.61
4.78

4
316.70
5.02

5
332.53
5.27

6
349.16
5.54

7
366.61
5.81

8
384.94
6.10

9
404.19
6.41

10
424.40
6.73

11
445.62
7.07

12
467.90
7.42

13
491.30
7.79

14
515.86
8.18

15
541.66
8.59

16
568.74
9.02

17
597.18
9.47

18
627.03
9.94

19
658.39
10.44

20
691.31
10.96

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
32.59
47.86
20.21
33.54
181.47
3.58

2
49.97
32.59
43.70
24.67
33.54
184.47
2.92

3
52.83
32.59
39.54
25.71
33.54
184.20
2.92

4
55.85
32.59
35.37
26.80
33.54
184.15
2.92

5
59.04
32.59
31.21
27.95
33.54
184.34
2.92

6
62.42
32.59
27.05
29.17
33.54
184.77
2.93

7
65.99
32.59
22.89
30.45
33.54
185.46
2.94

8
69.76
32.59
18.73
31.80
33.54
186.43
2.96

9
73.75
32.59
14.57
33.23
33.54
187.69
2.98

10
77.97
32.59
10.40
34.74
33.54
189.25
3.00

11
82.43
32.59
6.24
36.48
40.25
197.99
3.14

12
87.15
32.59
2.08
38.15
40.25
200.22
3.17

13
92.13
14.00
0.00
39.54
40.25
185.93
2.95

14
97.40
14.00
0.00
41.49
40.25
193.15
3.06

15
102.97
14.00
0.00
43.54
40.25
200.77
3.18

16
108.87
14.00
0.00
45.70
40.25
208.82
3.31

17
115.09
14.00
0.00
47.96
40.25
217.31
3.45

18
121.68
14.00
0.00
50.34
40.25
226.27
3.59

19
128.64
14.00
0.00
52.85
40.25
235.74
3.74

20
135.99
14.00
0.00
55.48
40.25
245.73
3.90

Levellised
6.12
1.14
0.47
0.40
0.51
0.57
9.22

1
4.39
0.93
0.64
0.94
0.40
0.66
7.97

2
4.55
0.79
0.52
0.69
0.39
0.53
7.48

3
4.78
0.84
0.52
0.63
0.41
0.53
7.70

4
5.02
0.89
0.52
0.56
0.42
0.53
7.94

5
5.27
0.94
0.52
0.49
0.44
0.53
8.19

6
5.54
0.99
0.52
0.43
0.46
0.53
8.47

7
5.81
1.05
0.52
0.36
0.48
0.53
8.75

8
6.10
1.11
0.52
0.30
0.50
0.53
9.06

9
6.41
1.17
0.52
0.23
0.53
0.53
9.38

10
6.73
1.24
0.52
0.16
0.55
0.53
9.73

11
7.07
1.31
0.52
0.10
0.58
0.64
10.20

12
7.42
1.38
0.52
0.03
0.60
0.64
10.59

13
7.79
1.46
0.22
0.00
0.63
0.64
10.74

14
8.18
1.54
0.22
0.00
0.66
0.64
11.24

15
8.59
1.63
0.22
0.00
0.69
0.64
11.77

16
9.02
1.73
0.22
0.00
0.72
0.64
12.33

17
9.47
1.82
0.22
0.00
0.76
0.64
12.91

18
9.94
1.93
0.22
0.00
0.80
0.64
13.53

19
10.44
2.04
0.22
0.00
0.84
0.64
14.18

20
10.96
2.16
0.22
0.00
0.88
0.64
14.86

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.39 Rs/Kwh
3.10 Rs/Kwh
7.49 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
559.033

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

Unit
%
Rs Lakh

1
2.64%
14.76

2
5.28%
29.52

3
5.28%
29.52

4
5.28%
29.52

5
5.28%
29.52

6
5.28%
29.52

7
5.28%
29.52

8
5.28%
29.52

9
5.28%
29.52

10
5.28%
29.52

11
5.28%
29.52

12
5.28%
29.52

13
5.28%
29.52

14
5.28%
29.52

15
5.28%
29.52

16
5.28%
29.52

17
5.28%
29.52

18
2.88%
16.10

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
279.52

50.00%
45.00%
5%
251.56

5.00%
4.00%
1.00%
22.36

1.00%
0.80%
0.20%
4.47

0.20%
0.16%
0.04%
0.89

0.04%
0.03%
0.01%
0.18

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

264.76
91.63
2.53
3.62

222.05
76.85
6.31
1.22

-7.16
-2.48
6.31
-0.04

-25.04
-8.67
6.31
-0.14

-28.62
-9.91
6.31
-0.16

-29.34
-10.15
6.31
-0.16

-29.48
-10.20
6.31
-0.16

-29.51
-10.21
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-16.10
-5.57
6.31
-0.09

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

0.63

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

0.18

(Rs/kWh)

93

Annexure 3.2 A
Biomass Power Projects (Other than Rice Straw & Juliflore (plantation) based projects) with air cooled
condenser and using Travelling Grate Boiler

Select State

AP

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

600.44

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
420.310
180.133

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

420.310
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

180.133
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income Tax
%
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)

Rs Lacs

22.00%
10.64%

34.610%
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4126
4126
2807.74
3174
5.00%
47.26
5.72%
40.00

94

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
207.82
4.20

2
268.57
4.35

3
282.00
4.57

4
296.10
4.80

5
310.91
5.04

6
326.45
5.29

7
342.77
5.56

8
359.91
5.84

9
377.91
6.13

10
396.80
6.43

11
416.65
6.76

12
437.48
7.09

13
459.35
7.45

14
482.32
7.82

15
506.43
8.21

16
531.76
8.62

17
558.34
9.05

18
586.26
9.51

19
615.57
9.98

20
646.35
10.48

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.01
51.40
19.42
36.03
189.12
3.82

2
49.97
35.01
46.93
23.59
36.03
191.52
3.11

3
52.83
35.01
42.46
24.55
36.03
190.87
3.10

4
55.85
35.01
37.99
25.57
36.03
190.45
3.09

5
59.04
35.01
33.52
26.65
36.03
190.25
3.08

6
62.42
35.01
29.05
27.78
36.03
190.29
3.09

7
65.99
35.01
24.58
28.98
36.03
190.59
3.09

8
69.76
35.01
20.11
30.25
36.03
191.16
3.10

9
73.75
35.01
15.64
31.58
36.03
192.02
3.11

10
77.97
35.01
11.17
32.99
36.03
193.17
3.13

11
82.43
35.01
6.70
34.64
43.23
202.02
3.28

12
87.15
35.01
2.23
36.21
43.23
203.83
3.31

13
92.13
15.04
-2.23
37.41
43.23
185.58
3.01

14
97.40
15.04
0.00
39.31
43.23
194.98
3.16

15
102.97
15.04
0.00
41.24
43.23
202.49
3.28

16
108.87
15.04
0.00
43.28
43.23
210.42
3.41

17
115.09
15.04
0.00
45.42
43.23
218.79
3.55

18
121.68
15.04
0.00
47.67
43.23
227.62
3.69

19
128.64
15.04
0.00
50.04
43.23
236.94
3.84

20
135.99
15.04
0.00
52.52
43.23
246.79
4.00

Levellised
5.86
1.16
0.52
0.44
0.50
0.63
9.11

1
4.20
0.95
0.71
1.04
0.39
0.73
8.01

2
4.35
0.81
0.57
0.76
0.38
0.58
7.46

3
4.57
0.86
0.57
0.69
0.40
0.58
7.67

4
4.80
0.91
0.57
0.62
0.41
0.58
7.89

5
5.04
0.96
0.57
0.54
0.43
0.58
8.13

6
5.29
1.01
0.57
0.47
0.45
0.58
8.38

7
5.56
1.07
0.57
0.40
0.47
0.58
8.65

8
5.84
1.13
0.57
0.33
0.49
0.58
8.94

9
6.13
1.20
0.57
0.25
0.51
0.58
9.24

10
6.43
1.26
0.57
0.18
0.54
0.58
9.57

11
6.76
1.34
0.57
0.11
0.56
0.70
10.03

12
7.09
1.41
0.57
0.04
0.59
0.70
10.40

13
7.45
1.49
0.24
-0.04
0.61
0.70
10.46

14
7.82
1.58
0.24
0.00
0.64
0.70
10.98

15
8.21
1.67
0.24
0.00
0.67
0.70
11.50

16
8.62
1.77
0.24
0.00
0.70
0.70
12.03

17
9.05
1.87
0.24
0.00
0.74
0.70
12.60

18
9.51
1.97
0.24
0.00
0.77
0.70
13.20

19
9.98
2.09
0.24
0.00
0.81
0.70
13.82

20
10.48
2.21
0.24
0.00
0.85
0.70
14.48

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.20 Rs/Kwh
3.25 Rs/Kwh
7.45 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
600.443

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

Unit
%
Rs Lakh

1
2.64%
15.85

2
5.28%
31.70

3
5.28%
31.70

4
5.28%
31.70

5
5.28%
31.70

6
5.28%
31.70

7
5.28%
31.70

8
5.28%
31.70

9
5.28%
31.70

10
5.28%
31.70

11
5.28%
31.70

12
5.28%
31.70

13
5.28%
31.70

14
5.28%
31.70

15
5.28%
31.70

16
5.28%
31.70

17
5.28%
31.70

18
2.88%
17.29

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
300.22

50.00%
45.00%
5%
270.20

5.00%
4.00%
1.00%
24.02

1.00%
0.80%
0.20%
4.80

0.20%
0.16%
0.04%
0.96

0.04%
0.03%
0.01%
0.19

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

284.37
98.42
2.48
3.97

238.50
82.54
6.17
1.34

-7.69
-2.66
6.17
-0.04

-26.90
-9.31
6.17
-0.15

-30.74
-10.64
6.17
-0.17

-31.51
-10.91
6.17
-0.18

-31.66
-10.96
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-17.29
-5.99
6.17
-0.10

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.20

(Rs/kWh)

95

Annexure 3.2 B
Select State

Harayana

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

600.44

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
420.310
180.133

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

420.310
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

180.133
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income Tax
%
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)

Rs Lacs

22.00%
10.64%

34.610%
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4126
4126
3195.86
3174
5.00%
47.26
5.72%
40.00

96

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
236.55
4.78

2
305.70
4.96

3
320.98
5.20

4
337.03
5.47

5
353.88
5.74

6
371.58
6.03

7
390.16
6.33

8
409.66
6.64

9
430.15
6.97

10
451.66
7.32

11
474.24
7.69

12
497.95
8.07

13
522.85
8.48

14
548.99
8.90

15
576.44
9.35

16
605.26
9.81

17
635.52
10.31

18
667.30
10.82

19
700.67
11.36

20
735.70
11.93

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.01
51.40
21.37
36.03
191.07
3.86

2
49.97
35.01
46.93
26.11
36.03
194.04
3.15

3
52.83
35.01
42.46
27.20
36.03
193.52
3.14

4
55.85
35.01
37.99
28.35
36.03
193.22
3.13

5
59.04
35.01
33.52
29.56
36.03
193.16
3.13

6
62.42
35.01
29.05
30.84
36.03
193.35
3.14

7
65.99
35.01
24.58
32.20
36.03
193.80
3.14

8
69.76
35.01
20.11
33.62
36.03
194.53
3.15

9
73.75
35.01
15.64
35.13
36.03
195.56
3.17

10
77.97
35.01
11.17
36.71
36.03
196.89
3.19

11
82.43
35.01
6.70
38.55
43.23
205.92
3.34

12
87.15
35.01
2.23
40.31
43.23
207.93
3.37

13
92.13
15.04
-2.23
41.72
43.23
189.89
3.08

14
97.40
15.04
0.00
43.83
43.23
199.50
3.23

15
102.97
15.04
0.00
45.99
43.23
207.24
3.36

16
108.87
15.04
0.00
48.26
43.23
215.40
3.49

17
115.09
15.04
0.00
50.65
43.23
224.02
3.63

18
121.68
15.04
0.00
53.17
43.23
233.11
3.78

19
128.64
15.04
0.00
55.81
43.23
242.71
3.94

20
135.99
15.04
0.00
58.58
43.23
252.85
4.10

Levellised
6.67
1.16
0.52
0.44
0.55
0.63
9.97

1
4.78
0.95
0.71
1.04
0.43
0.73
8.63

2
4.96
0.81
0.57
0.76
0.42
0.58
8.10

3
5.20
0.86
0.57
0.69
0.44
0.58
8.34

4
5.47
0.91
0.57
0.62
0.46
0.58
8.60

5
5.74
0.96
0.57
0.54
0.48
0.58
8.87

6
6.03
1.01
0.57
0.47
0.50
0.58
9.16

7
6.33
1.07
0.57
0.40
0.52
0.58
9.47

8
6.64
1.13
0.57
0.33
0.55
0.58
9.80

9
6.97
1.20
0.57
0.25
0.57
0.58
10.15

10
7.32
1.26
0.57
0.18
0.60
0.58
10.52

11
7.69
1.34
0.57
0.11
0.63
0.70
11.03

12
8.07
1.41
0.57
0.04
0.65
0.70
11.45

13
8.48
1.49
0.24
-0.04
0.68
0.70
11.56

14
8.90
1.58
0.24
0.00
0.71
0.70
12.14

15
9.35
1.67
0.24
0.00
0.75
0.70
12.71

16
9.81
1.77
0.24
0.00
0.78
0.70
13.31

17
10.31
1.87
0.24
0.00
0.82
0.70
13.94

18
10.82
1.97
0.24
0.00
0.86
0.70
14.60

19
11.36
2.09
0.24
0.00
0.90
0.70
15.30

20
11.93
2.21
0.24
0.00
0.95
0.70
16.03

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.78 Rs/Kwh
3.31 Rs/Kwh
8.08 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
600.443

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

Unit
%
Rs Lakh

1
2.64%
15.85

2
5.28%
31.70

3
5.28%
31.70

4
5.28%
31.70

5
5.28%
31.70

6
5.28%
31.70

7
5.28%
31.70

8
5.28%
31.70

9
5.28%
31.70

10
5.28%
31.70

11
5.28%
31.70

12
5.28%
31.70

13
5.28%
31.70

14
5.28%
31.70

15
5.28%
31.70

16
5.28%
31.70

17
5.28%
31.70

18
2.88%
17.29

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
300.22

50.00%
45.00%
5%
270.20

5.00%
4.00%
1.00%
24.02

1.00%
0.80%
0.20%
4.80

0.20%
0.16%
0.04%
0.96

0.04%
0.03%
0.01%
0.19

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

284.37
98.42
2.48
3.97

238.50
82.54
6.17
1.34

-7.69
-2.66
6.17
-0.04

-26.90
-9.31
6.17
-0.15

-30.74
-10.64
6.17
-0.17

-31.51
-10.91
6.17
-0.18

-31.66
-10.96
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-17.29
-5.99
6.17
-0.10

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.20

(Rs/kWh)

97

Annexure 3.2 C
Select State

Maharashtra

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

600.44

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
420.310
180.133

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

420.310
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

180.133
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income Tax
%
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)

Rs Lacs

22.00%
10.64%

34.610%
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4126
4126
3268.62
3174
5.00%
47.26
5.72%
40.00

98

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
241.94
4.88

2
312.66
5.07

3
328.29
5.32

4
344.71
5.59

5
361.94
5.87

6
380.04
6.16

7
399.04
6.47

8
418.99
6.79

9
439.94
7.13

10
461.94
7.49

11
485.04
7.86

12
509.29
8.26

13
534.75
8.67

14
561.49
9.10

15
589.56
9.56

16
619.04
10.04

17
649.99
10.54

18
682.49
11.07

19
716.62
11.62

20
752.45
12.20

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.01
51.40
21.74
36.03
191.44
3.86

2
49.97
35.01
46.93
26.58
36.03
194.51
3.15

3
52.83
35.01
42.46
27.69
36.03
194.01
3.15

4
55.85
35.01
37.99
28.87
36.03
193.74
3.14

5
59.04
35.01
33.52
30.11
36.03
193.71
3.14

6
62.42
35.01
29.05
31.42
36.03
193.92
3.14

7
65.99
35.01
24.58
32.80
36.03
194.40
3.15

8
69.76
35.01
20.11
34.26
36.03
195.17
3.16

9
73.75
35.01
15.64
35.79
36.03
196.22
3.18

10
77.97
35.01
11.17
37.41
36.03
197.59
3.20

11
82.43
35.01
6.70
39.28
43.23
206.66
3.35

12
87.15
35.01
2.23
41.08
43.23
208.70
3.38

13
92.13
15.04
-2.23
42.52
43.23
190.70
3.09

14
97.40
15.04
0.00
44.67
43.23
200.35
3.25

15
102.97
15.04
0.00
46.88
43.23
208.13
3.37

16
108.87
15.04
0.00
49.20
43.23
216.34
3.51

17
115.09
15.04
0.00
51.63
43.23
225.00
3.65

18
121.68
15.04
0.00
54.20
43.23
234.14
3.80

19
128.64
15.04
0.00
56.89
43.23
243.80
3.95

20
135.99
15.04
0.00
59.72
43.23
253.98
4.12

Levellised
6.82
1.16
0.52
0.44
0.56
0.63
10.14

1
4.88
0.95
0.71
1.04
0.44
0.73
8.75

2
5.07
0.81
0.57
0.76
0.43
0.58
8.22

3
5.32
0.86
0.57
0.69
0.45
0.58
8.47

4
5.59
0.91
0.57
0.62
0.47
0.58
8.73

5
5.87
0.96
0.57
0.54
0.49
0.58
9.01

6
6.16
1.01
0.57
0.47
0.51
0.58
9.31

7
6.47
1.07
0.57
0.40
0.53
0.58
9.62

8
6.79
1.13
0.57
0.33
0.56
0.58
9.96

9
7.13
1.20
0.57
0.25
0.58
0.58
10.32

10
7.49
1.26
0.57
0.18
0.61
0.58
10.69

11
7.86
1.34
0.57
0.11
0.64
0.70
11.22

12
8.26
1.41
0.57
0.04
0.67
0.70
11.64

13
8.67
1.49
0.24
-0.04
0.69
0.70
11.76

14
9.10
1.58
0.24
0.00
0.72
0.70
12.35

15
9.56
1.67
0.24
0.00
0.76
0.70
12.93

16
10.04
1.77
0.24
0.00
0.80
0.70
13.55

17
10.54
1.87
0.24
0.00
0.84
0.70
14.19

18
11.07
1.97
0.24
0.00
0.88
0.70
14.86

19
11.62
2.09
0.24
0.00
0.92
0.70
15.57

20
12.20
2.21
0.24
0.00
0.97
0.70
16.32

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.88 Rs/Kwh
3.32 Rs/Kwh
8.20 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
600.443

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

Unit
%
Rs Lakh

1
2.64%
15.85

2
5.28%
31.70

3
5.28%
31.70

4
5.28%
31.70

5
5.28%
31.70

6
5.28%
31.70

7
5.28%
31.70

8
5.28%
31.70

9
5.28%
31.70

10
5.28%
31.70

11
5.28%
31.70

12
5.28%
31.70

13
5.28%
31.70

14
5.28%
31.70

15
5.28%
31.70

16
5.28%
31.70

17
5.28%
31.70

18
2.88%
17.29

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
300.22

50.00%
45.00%
5%
270.20

5.00%
4.00%
1.00%
24.02

1.00%
0.80%
0.20%
4.80

0.20%
0.16%
0.04%
0.96

0.04%
0.03%
0.01%
0.19

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

284.37
98.42
2.48
3.97

238.50
82.54
6.17
1.34

-7.69
-2.66
6.17
-0.04

-26.90
-9.31
6.17
-0.15

-30.74
-10.64
6.17
-0.17

-31.51
-10.91
6.17
-0.18

-31.66
-10.96
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-17.29
-5.99
6.17
-0.10

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.20

(Rs/kWh)

99

Annexure 3.2. D
Select State

Punjab

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

600.44

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
420.310
180.133

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

420.310
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

180.133
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income Tax
%
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)

Rs Lacs

22.00%
10.64%

34.610%
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4126
4126
3342.60
3174
5.00%
47.26
5.72%
40.00

100

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
247.41
4.99

2
319.73
5.18

3
335.72
5.44

4
352.51
5.72

5
370.13
6.00

6
388.64
6.30

7
408.07
6.62

8
428.48
6.95

9
449.90
7.30

10
472.39
7.66

11
496.01
8.04

12
520.81
8.45

13
546.86
8.87

14
574.20
9.31

15
602.91
9.78

16
633.05
10.27

17
664.71
10.78

18
697.94
11.32

19
732.84
11.88

20
769.48
12.48

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.01
51.40
22.11
36.03
191.81
3.87

2
49.97
35.01
46.93
27.06
36.03
194.99
3.16

3
52.83
35.01
42.46
28.20
36.03
194.52
3.15

4
55.85
35.01
37.99
29.40
36.03
194.27
3.15

5
59.04
35.01
33.52
30.66
36.03
194.26
3.15

6
62.42
35.01
29.05
32.00
36.03
194.51
3.15

7
65.99
35.01
24.58
33.41
36.03
195.02
3.16

8
69.76
35.01
20.11
34.90
36.03
195.81
3.18

9
73.75
35.01
15.64
36.47
36.03
196.90
3.19

10
77.97
35.01
11.17
38.12
36.03
198.30
3.22

11
82.43
35.01
6.70
40.02
43.23
207.40
3.36

12
87.15
35.01
2.23
41.86
43.23
209.48
3.40

13
92.13
15.04
-2.23
43.35
43.23
191.52
3.11

14
97.40
15.04
0.00
45.54
43.23
201.21
3.26

15
102.97
15.04
0.00
47.78
43.23
209.03
3.39

16
108.87
15.04
0.00
50.15
43.23
217.29
3.52

17
115.09
15.04
0.00
52.63
43.23
226.00
3.66

18
121.68
15.04
0.00
55.24
43.23
235.19
3.81

19
128.64
15.04
0.00
57.99
43.23
244.89
3.97

20
135.99
15.04
0.00
60.87
43.23
255.14
4.14

Levellised
6.97
1.16
0.52
0.44
0.57
0.63
10.30

1
4.99
0.95
0.71
1.04
0.45
0.73
8.87

2
5.18
0.81
0.57
0.76
0.44
0.58
8.35

3
5.44
0.86
0.57
0.69
0.46
0.58
8.60

4
5.72
0.91
0.57
0.62
0.48
0.58
8.87

5
6.00
0.96
0.57
0.54
0.50
0.58
9.15

6
6.30
1.01
0.57
0.47
0.52
0.58
9.46

7
6.62
1.07
0.57
0.40
0.54
0.58
9.78

8
6.95
1.13
0.57
0.33
0.57
0.58
10.12

9
7.30
1.20
0.57
0.25
0.59
0.58
10.49

10
7.66
1.26
0.57
0.18
0.62
0.58
10.88

11
8.04
1.34
0.57
0.11
0.65
0.70
11.41

12
8.45
1.41
0.57
0.04
0.68
0.70
11.84

13
8.87
1.49
0.24
-0.04
0.70
0.70
11.97

14
9.31
1.58
0.24
0.00
0.74
0.70
12.57

15
9.78
1.67
0.24
0.00
0.77
0.70
13.17

16
10.27
1.77
0.24
0.00
0.81
0.70
13.79

17
10.78
1.87
0.24
0.00
0.85
0.70
14.44

18
11.32
1.97
0.24
0.00
0.90
0.70
15.13

19
11.88
2.09
0.24
0.00
0.94
0.70
15.85

20
12.48
2.21
0.24
0.00
0.99
0.70
16.61

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.99 Rs/Kwh
3.33 Rs/Kwh
8.32 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
600.443

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

Unit
%
Rs Lakh

1
2.64%
15.85

2
5.28%
31.70

3
5.28%
31.70

4
5.28%
31.70

5
5.28%
31.70

6
5.28%
31.70

7
5.28%
31.70

8
5.28%
31.70

9
5.28%
31.70

10
5.28%
31.70

11
5.28%
31.70

12
5.28%
31.70

13
5.28%
31.70

14
5.28%
31.70

15
5.28%
31.70

16
5.28%
31.70

17
5.28%
31.70

18
2.88%
17.29

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
300.22

50.00%
45.00%
5%
270.20

5.00%
4.00%
1.00%
24.02

1.00%
0.80%
0.20%
4.80

0.20%
0.16%
0.04%
0.96

0.04%
0.03%
0.01%
0.19

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

284.37
98.42
2.48
3.97

238.50
82.54
6.17
1.34

-7.69
-2.66
6.17
-0.04

-26.90
-9.31
6.17
-0.15

-30.74
-10.64
6.17
-0.17

-31.51
-10.91
6.17
-0.18

-31.66
-10.96
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-17.29
-5.99
6.17
-0.10

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.20

(Rs/kWh)

101

Annexure 3.2. E
Select State

Rajasthan

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

600.44

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
420.310
180.133

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

420.310
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

180.133
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income Tax
%
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)

Rs Lacs

22.00%
10.64%

34.610%
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4126
4126
2789.54
3174
5.00%
47.26
5.72%
40.00

102

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
206.48
4.17

2
266.83
4.33

3
280.17
4.54

4
294.18
4.77

5
308.89
5.01

6
324.34
5.26

7
340.55
5.52

8
357.58
5.80

9
375.46
6.09

10
394.23
6.39

11
413.94
6.71

12
434.64
7.05

13
456.37
7.40

14
479.19
7.77

15
503.15
8.16

16
528.31
8.57

17
554.73
9.00

18
582.46
9.44

19
611.59
9.92

20
642.16
10.41

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.01
51.40
19.33
36.03
189.03
3.82

2
49.97
35.01
46.93
23.47
36.03
191.40
3.10

3
52.83
35.01
42.46
24.43
36.03
190.75
3.09

4
55.85
35.01
37.99
25.44
36.03
190.32
3.09

5
59.04
35.01
33.52
26.51
36.03
190.11
3.08

6
62.42
35.01
29.05
27.64
36.03
190.15
3.08

7
65.99
35.01
24.58
28.83
36.03
190.44
3.09

8
69.76
35.01
20.11
30.09
36.03
191.00
3.10

9
73.75
35.01
15.64
31.42
36.03
191.85
3.11

10
77.97
35.01
11.17
32.82
36.03
193.00
3.13

11
82.43
35.01
6.70
34.46
43.23
201.84
3.27

12
87.15
35.01
2.23
36.02
43.23
203.64
3.30

13
92.13
15.04
-2.23
37.21
43.23
185.38
3.01

14
97.40
15.04
0.00
39.09
43.23
194.77
3.16

15
102.97
15.04
0.00
41.02
43.23
202.27
3.28

16
108.87
15.04
0.00
43.05
43.23
210.18
3.41

17
115.09
15.04
0.00
45.17
43.23
218.54
3.54

18
121.68
15.04
0.00
47.41
43.23
227.36
3.69

19
128.64
15.04
0.00
49.76
43.23
236.67
3.84

20
135.99
15.04
0.00
52.24
43.23
246.50
4.00

Levellised
5.82
1.16
0.52
0.44
0.49
0.63
9.07

1
4.17
0.95
0.71
1.04
0.39
0.73
7.98

2
4.33
0.81
0.57
0.76
0.38
0.58
7.43

3
4.54
0.86
0.57
0.69
0.40
0.58
7.64

4
4.77
0.91
0.57
0.62
0.41
0.58
7.86

5
5.01
0.96
0.57
0.54
0.43
0.58
8.09

6
5.26
1.01
0.57
0.47
0.45
0.58
8.34

7
5.52
1.07
0.57
0.40
0.47
0.58
8.61

8
5.80
1.13
0.57
0.33
0.49
0.58
8.90

9
6.09
1.20
0.57
0.25
0.51
0.58
9.20

10
6.39
1.26
0.57
0.18
0.53
0.58
9.52

11
6.71
1.34
0.57
0.11
0.56
0.70
9.99

12
7.05
1.41
0.57
0.04
0.58
0.70
10.35

13
7.40
1.49
0.24
-0.04
0.60
0.70
10.41

14
7.77
1.58
0.24
0.00
0.63
0.70
10.93

15
8.16
1.67
0.24
0.00
0.67
0.70
11.44

16
8.57
1.77
0.24
0.00
0.70
0.70
11.97

17
9.00
1.87
0.24
0.00
0.73
0.70
12.54

18
9.44
1.97
0.24
0.00
0.77
0.70
13.13

19
9.92
2.09
0.24
0.00
0.81
0.70
13.75

20
10.41
2.21
0.24
0.00
0.85
0.70
14.41

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.17 Rs/Kwh
3.25 Rs/Kwh
7.42 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
600.443

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

Unit
%
Rs Lakh

1
2.64%
15.85

2
5.28%
31.70

3
5.28%
31.70

4
5.28%
31.70

5
5.28%
31.70

6
5.28%
31.70

7
5.28%
31.70

8
5.28%
31.70

9
5.28%
31.70

10
5.28%
31.70

11
5.28%
31.70

12
5.28%
31.70

13
5.28%
31.70

14
5.28%
31.70

15
5.28%
31.70

16
5.28%
31.70

17
5.28%
31.70

18
2.88%
17.29

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
300.22

50.00%
45.00%
5%
270.20

5.00%
4.00%
1.00%
24.02

1.00%
0.80%
0.20%
4.80

0.20%
0.16%
0.04%
0.96

0.04%
0.03%
0.01%
0.19

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

284.37
98.42
2.48
3.97

238.50
82.54
6.17
1.34

-7.69
-2.66
6.17
-0.04

-26.90
-9.31
6.17
-0.15

-30.74
-10.64
6.17
-0.17

-31.51
-10.91
6.17
-0.18

-31.66
-10.96
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-17.29
-5.99
6.17
-0.10

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.20

(Rs/kWh)

103

Annexure 3.2. F
Select State

TN

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

600.44

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
420.310
180.133

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

420.310
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

180.133
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income Tax
%
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)

Rs Lacs

22.00%
10.64%

34.610%
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4126
4126
2761.64
3174
5.00%
47.26
5.72%
40.00

104

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
204.41
4.13

2
264.16
4.28

3
277.37
4.50

4
291.24
4.72

5
305.80
4.96

6
321.09
5.21

7
337.15
5.47

8
354.00
5.74

9
371.70
6.03

10
390.29
6.33

11
409.80
6.65

12
430.29
6.98

13
451.81
7.33

14
474.40
7.69

15
498.12
8.08

16
523.03
8.48

17
549.18
8.91

18
576.64
9.35

19
605.47
9.82

20
635.74
10.31

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.01
51.40
19.19
36.03
188.89
3.81

2
49.97
35.01
46.93
23.29
36.03
191.22
3.10

3
52.83
35.01
42.46
24.24
36.03
190.56
3.09

4
55.85
35.01
37.99
25.24
36.03
190.12
3.08

5
59.04
35.01
33.52
26.30
36.03
189.90
3.08

6
62.42
35.01
29.05
27.42
36.03
189.93
3.08

7
65.99
35.01
24.58
28.60
36.03
190.21
3.08

8
69.76
35.01
20.11
29.85
36.03
190.76
3.09

9
73.75
35.01
15.64
31.16
36.03
191.60
3.11

10
77.97
35.01
11.17
32.55
36.03
192.73
3.13

11
82.43
35.01
6.70
34.18
43.23
201.56
3.27

12
87.15
35.01
2.23
35.72
43.23
203.34
3.30

13
92.13
15.04
-2.23
36.90
43.23
185.07
3.00

14
97.40
15.04
0.00
38.77
43.23
194.44
3.15

15
102.97
15.04
0.00
40.68
43.23
201.93
3.27

16
108.87
15.04
0.00
42.69
43.23
209.83
3.40

17
115.09
15.04
0.00
44.80
43.23
218.16
3.54

18
121.68
15.04
0.00
47.02
43.23
226.97
3.68

19
128.64
15.04
0.00
49.35
43.23
236.26
3.83

20
135.99
15.04
0.00
51.80
43.23
246.07
3.99

Levellised
5.76
1.16
0.52
0.44
0.49
0.63
9.01

1
4.13
0.95
0.71
1.04
0.39
0.73
7.94

2
4.28
0.81
0.57
0.76
0.38
0.58
7.38

3
4.50
0.86
0.57
0.69
0.39
0.58
7.59

4
4.72
0.91
0.57
0.62
0.41
0.58
7.81

5
4.96
0.96
0.57
0.54
0.43
0.58
8.04

6
5.21
1.01
0.57
0.47
0.44
0.58
8.29

7
5.47
1.07
0.57
0.40
0.46
0.58
8.55

8
5.74
1.13
0.57
0.33
0.48
0.58
8.83

9
6.03
1.20
0.57
0.25
0.51
0.58
9.13

10
6.33
1.26
0.57
0.18
0.53
0.58
9.45

11
6.65
1.34
0.57
0.11
0.55
0.70
9.91

12
6.98
1.41
0.57
0.04
0.58
0.70
10.27

13
7.33
1.49
0.24
-0.04
0.60
0.70
10.33

14
7.69
1.58
0.24
0.00
0.63
0.70
10.85

15
8.08
1.67
0.24
0.00
0.66
0.70
11.35

16
8.48
1.77
0.24
0.00
0.69
0.70
11.88

17
8.91
1.87
0.24
0.00
0.73
0.70
12.44

18
9.35
1.97
0.24
0.00
0.76
0.70
13.03

19
9.82
2.09
0.24
0.00
0.80
0.70
13.65

20
10.31
2.21
0.24
0.00
0.84
0.70
14.30

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.13 Rs/Kwh
3.25 Rs/Kwh
7.37 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
600.443

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

Unit
%
Rs Lakh

1
2.64%
15.85

2
5.28%
31.70

3
5.28%
31.70

4
5.28%
31.70

5
5.28%
31.70

6
5.28%
31.70

7
5.28%
31.70

8
5.28%
31.70

9
5.28%
31.70

10
5.28%
31.70

11
5.28%
31.70

12
5.28%
31.70

13
5.28%
31.70

14
5.28%
31.70

15
5.28%
31.70

16
5.28%
31.70

17
5.28%
31.70

18
2.88%
17.29

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
300.22

50.00%
45.00%
5%
270.20

5.00%
4.00%
1.00%
24.02

1.00%
0.80%
0.20%
4.80

0.20%
0.16%
0.04%
0.96

0.04%
0.03%
0.01%
0.19

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

284.37
98.42
2.48
3.97

238.50
82.54
6.17
1.34

-7.69
-2.66
6.17
-0.04

-26.90
-9.31
6.17
-0.15

-30.74
-10.64
6.17
-0.17

-31.51
-10.91
6.17
-0.18

-31.66
-10.96
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-17.29
-5.99
6.17
-0.10

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.20

(Rs/kWh)

105

Annexure 3.2 G
Select State

UP

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

600.44

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
420.310
180.133

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

420.310
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

180.133
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income Tax
%
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)

Rs Lacs

22.00%
10.64%

34.610%
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4126
4126
2856.25
3174
5.00%
47.26
5.72%
40.00

106

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
211.41
4.27

2
273.21
4.43

3
286.87
4.65

4
301.22
4.88

5
316.28
5.13

6
332.09
5.38

7
348.70
5.65

8
366.13
5.94

9
384.44
6.23

10
403.66
6.55

11
423.84
6.87

12
445.04
7.22

13
467.29
7.58

14
490.65
7.96

15
515.18
8.35

16
540.94
8.77

17
567.99
9.21

18
596.39
9.67

19
626.21
10.15

20
657.52
10.66

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.01
51.40
19.67
36.03
189.37
3.82

2
49.97
35.01
46.93
23.90
36.03
191.84
3.11

3
52.83
35.01
42.46
24.88
36.03
191.20
3.10

4
55.85
35.01
37.99
25.92
36.03
190.79
3.09

5
59.04
35.01
33.52
27.01
36.03
190.61
3.09

6
62.42
35.01
29.05
28.17
36.03
190.67
3.09

7
65.99
35.01
24.58
29.38
36.03
190.99
3.10

8
69.76
35.01
20.11
30.67
36.03
191.58
3.11

9
73.75
35.01
15.64
32.03
36.03
192.46
3.12

10
77.97
35.01
11.17
33.46
36.03
193.64
3.14

11
82.43
35.01
6.70
35.13
43.23
202.51
3.28

12
87.15
35.01
2.23
36.72
43.23
204.34
3.31

13
92.13
15.04
-2.23
37.95
43.23
186.12
3.02

14
97.40
15.04
0.00
39.87
43.23
195.55
3.17

15
102.97
15.04
0.00
41.84
43.23
203.08
3.29

16
108.87
15.04
0.00
43.90
43.23
211.04
3.42

17
115.09
15.04
0.00
46.07
43.23
219.44
3.56

18
121.68
15.04
0.00
48.36
43.23
228.31
3.70

19
128.64
15.04
0.00
50.76
43.23
237.66
3.85

20
135.99
15.04
0.00
53.28
43.23
247.54
4.01

Levellised
5.96
1.16
0.52
0.44
0.50
0.63
9.22

1
4.27
0.95
0.71
1.04
0.40
0.73
8.09

2
4.43
0.81
0.57
0.76
0.39
0.58
7.54

3
4.65
0.86
0.57
0.69
0.40
0.58
7.75

4
4.88
0.91
0.57
0.62
0.42
0.58
7.98

5
5.13
0.96
0.57
0.54
0.44
0.58
8.22

6
5.38
1.01
0.57
0.47
0.46
0.58
8.48

7
5.65
1.07
0.57
0.40
0.48
0.58
8.75

8
5.94
1.13
0.57
0.33
0.50
0.58
9.04

9
6.23
1.20
0.57
0.25
0.52
0.58
9.35

10
6.55
1.26
0.57
0.18
0.54
0.58
9.69

11
6.87
1.34
0.57
0.11
0.57
0.70
10.16

12
7.22
1.41
0.57
0.04
0.60
0.70
10.53

13
7.58
1.49
0.24
-0.04
0.62
0.70
10.60

14
7.96
1.58
0.24
0.00
0.65
0.70
11.13

15
8.35
1.67
0.24
0.00
0.68
0.70
11.65

16
8.77
1.77
0.24
0.00
0.71
0.70
12.19

17
9.21
1.87
0.24
0.00
0.75
0.70
12.77

18
9.67
1.97
0.24
0.00
0.78
0.70
13.37

19
10.15
2.09
0.24
0.00
0.82
0.70
14.01

20
10.66
2.21
0.24
0.00
0.86
0.70
14.68

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.27 Rs/Kwh
3.26 Rs/Kwh
7.53 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
600.443

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

Unit
%
Rs Lakh

1
2.64%
15.85

2
5.28%
31.70

3
5.28%
31.70

4
5.28%
31.70

5
5.28%
31.70

6
5.28%
31.70

7
5.28%
31.70

8
5.28%
31.70

9
5.28%
31.70

10
5.28%
31.70

11
5.28%
31.70

12
5.28%
31.70

13
5.28%
31.70

14
5.28%
31.70

15
5.28%
31.70

16
5.28%
31.70

17
5.28%
31.70

18
2.88%
17.29

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
300.22

50.00%
45.00%
5%
270.20

5.00%
4.00%
1.00%
24.02

1.00%
0.80%
0.20%
4.80

0.20%
0.16%
0.04%
0.96

0.04%
0.03%
0.01%
0.19

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

284.37
98.42
2.48
3.97

238.50
82.54
6.17
1.34

-7.69
-2.66
6.17
-0.04

-26.90
-9.31
6.17
-0.15

-30.74
-10.64
6.17
-0.17

-31.51
-10.91
6.17
-0.18

-31.66
-10.96
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-17.29
-5.99
6.17
-0.10

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.20

(Rs/kWh)

107

Annexure 3.2. H
Select State

Others

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

600.44

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
420.310
180.133

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

420.310
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

180.133
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income Tax
%
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)

Rs Lacs

22.00%
10.64%

34.610%
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4126
4126
3003.01
3174
5.00%
47.26
5.72%
40.00

108

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
222.28
4.49

2
287.25
4.66

3
301.61
4.89

4
316.70
5.14

5
332.53
5.39

6
349.16
5.66

7
366.61
5.94

8
384.94
6.24

9
404.19
6.55

10
424.40
6.88

11
445.62
7.23

12
467.90
7.59

13
491.30
7.97

14
515.86
8.36

15
541.66
8.78

16
568.74
9.22

17
597.18
9.68

18
627.03
10.17

19
658.39
10.68

20
691.31
11.21

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.01
51.40
20.40
36.03
190.10
3.84

2
49.97
35.01
46.93
24.85
36.03
192.79
3.13

3
52.83
35.01
42.46
25.88
36.03
192.20
3.12

4
55.85
35.01
37.99
26.97
36.03
191.84
3.11

5
59.04
35.01
33.52
28.11
36.03
191.71
3.11

6
62.42
35.01
29.05
29.32
36.03
191.83
3.11

7
65.99
35.01
24.58
30.60
36.03
192.21
3.12

8
69.76
35.01
20.11
31.95
36.03
192.86
3.13

9
73.75
35.01
15.64
33.37
36.03
193.80
3.14

10
77.97
35.01
11.17
34.87
36.03
195.05
3.16

11
82.43
35.01
6.70
36.61
43.23
203.98
3.31

12
87.15
35.01
2.23
38.27
43.23
205.89
3.34

13
92.13
15.04
-2.23
39.58
43.23
187.75
3.04

14
97.40
15.04
0.00
41.58
43.23
197.26
3.20

15
102.97
15.04
0.00
43.63
43.23
204.88
3.32

16
108.87
15.04
0.00
45.79
43.23
212.93
3.45

17
115.09
15.04
0.00
48.05
43.23
221.42
3.59

18
121.68
15.04
0.00
50.43
43.23
230.38
3.74

19
128.64
15.04
0.00
52.94
43.23
239.85
3.89

20
135.99
15.04
0.00
55.57
43.23
249.84
4.05

Levellised
6.26
1.16
0.52
0.44
0.52
0.63
9.54

1
4.49
0.95
0.71
1.04
0.41
0.73
8.32

2
4.66
0.81
0.57
0.76
0.40
0.58
7.78

3
4.89
0.86
0.57
0.69
0.42
0.58
8.01

4
5.14
0.91
0.57
0.62
0.44
0.58
8.25

5
5.39
0.96
0.57
0.54
0.46
0.58
8.50

6
5.66
1.01
0.57
0.47
0.48
0.58
8.77

7
5.94
1.07
0.57
0.40
0.50
0.58
9.06

8
6.24
1.13
0.57
0.33
0.52
0.58
9.37

9
6.55
1.20
0.57
0.25
0.54
0.58
9.70

10
6.88
1.26
0.57
0.18
0.57
0.58
10.04

11
7.23
1.34
0.57
0.11
0.59
0.70
10.53

12
7.59
1.41
0.57
0.04
0.62
0.70
10.93

13
7.97
1.49
0.24
-0.04
0.64
0.70
11.01

14
8.36
1.58
0.24
0.00
0.67
0.70
11.56

15
8.78
1.67
0.24
0.00
0.71
0.70
12.11

16
9.22
1.77
0.24
0.00
0.74
0.70
12.67

17
9.68
1.87
0.24
0.00
0.78
0.70
13.27

18
10.17
1.97
0.24
0.00
0.82
0.70
13.90

19
10.68
2.09
0.24
0.00
0.86
0.70
14.57

20
11.21
2.21
0.24
0.00
0.90
0.70
15.26

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.49 Rs/Kwh
3.28 Rs/Kwh
7.77 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
600.443

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

Unit
%
Rs Lakh

1
2.64%
15.85

2
5.28%
31.70

3
5.28%
31.70

4
5.28%
31.70

5
5.28%
31.70

6
5.28%
31.70

7
5.28%
31.70

8
5.28%
31.70

9
5.28%
31.70

10
5.28%
31.70

11
5.28%
31.70

12
5.28%
31.70

13
5.28%
31.70

14
5.28%
31.70

15
5.28%
31.70

16
5.28%
31.70

17
5.28%
31.70

18
2.88%
17.29

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
300.22

50.00%
45.00%
5%
270.20

5.00%
4.00%
1.00%
24.02

1.00%
0.80%
0.20%
4.80

0.20%
0.16%
0.04%
0.96

0.04%
0.03%
0.01%
0.19

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

284.37
98.42
2.48
3.97

238.50
82.54
6.17
1.34

-7.69
-2.66
6.17
-0.04

-26.90
-9.31
6.17
-0.15

-30.74
-10.64
6.17
-0.17

-31.51
-10.91
6.17
-0.18

-31.66
-10.96
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-17.29
-5.99
6.17
-0.10

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.20

(Rs/kWh)

109

Annexure 3.3 A
Biomass Power Projects (Rice Straw & Juliflore (plantation) based projects) with water cooled condenser and
using Travelling Grate Boiler

Select State

AP

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

610.80

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
427.557
183.239

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

427.557
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

183.239
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80 IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4126
4126
2807.74
3174
5.00%
47.26
5.72%
40.00

110

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
207.82
4.10

2
268.57
4.26

3
282.00
4.47

4
296.10
4.69

5
310.91
4.93

6
326.45
5.18

7
342.77
5.43

8
359.91
5.71

9
377.91
5.99

10
396.80
6.29

11
416.65
6.61

12
437.48
6.94

13
459.35
7.28

14
482.32
7.65

15
506.43
8.03

16
531.76
8.43

17
558.34
8.85

18
586.26
9.30

19
615.57
9.76

20
646.35
10.25

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.61
52.29
19.47
36.65
191.28
3.77

2
49.97
35.61
47.74
23.63
36.65
193.60
3.07

3
52.83
35.61
43.20
24.60
36.65
192.88
3.06

4
55.85
35.61
38.65
25.61
36.65
192.37
3.05

5
59.04
35.61
34.10
26.69
36.65
192.09
3.05

6
62.42
35.61
29.56
27.82
36.65
192.05
3.04

7
65.99
35.61
25.01
29.02
36.65
192.28
3.05

8
69.76
35.61
20.46
30.28
36.65
192.77
3.06

9
73.75
35.61
15.91
31.62
36.65
193.54
3.07

10
77.97
35.61
11.37
33.03
36.65
194.62
3.09

11
82.43
35.61
6.82
34.68
43.98
203.52
3.23

12
87.15
35.61
2.27
36.24
43.98
205.25
3.25

13
92.13
15.30
0.00
37.48
43.98
188.90
2.99

14
97.40
15.30
0.00
39.33
43.98
196.01
3.11

15
102.97
15.30
0.00
41.27
43.98
203.52
3.23

16
108.87
15.30
0.00
43.30
43.98
211.44
3.35

17
115.09
15.30
0.00
45.44
43.98
219.81
3.49

18
121.68
15.30
0.00
47.69
43.98
228.65
3.63

19
128.64
15.30
0.00
50.06
43.98
237.97
3.77

20
135.99
15.30
0.00
52.54
43.98
247.82
3.93

Levellised
5.73
1.14
0.52
0.44
0.49
0.63
8.94

1
4.10
0.93
0.70
1.03
0.38
0.72
7.88

2
4.26
0.79
0.56
0.76
0.37
0.58
7.33

3
4.47
0.84
0.56
0.68
0.39
0.58
7.53

4
4.69
0.89
0.56
0.61
0.41
0.58
7.74

5
4.93
0.94
0.56
0.54
0.42
0.58
7.97

6
5.18
0.99
0.56
0.47
0.44
0.58
8.22

7
5.43
1.05
0.56
0.40
0.46
0.58
8.48

8
5.71
1.11
0.56
0.32
0.48
0.58
8.76

9
5.99
1.17
0.56
0.25
0.50
0.58
9.06

10
6.29
1.24
0.56
0.18
0.52
0.58
9.38

11
6.61
1.31
0.56
0.11
0.55
0.70
9.83

12
6.94
1.38
0.56
0.04
0.57
0.70
10.19

13
7.28
1.46
0.24
0.00
0.59
0.70
10.28

14
7.65
1.54
0.24
0.00
0.62
0.70
10.75

15
8.03
1.63
0.24
0.00
0.65
0.70
11.26

16
8.43
1.73
0.24
0.00
0.69
0.70
11.78

17
8.85
1.82
0.24
0.00
0.72
0.70
12.34

18
9.30
1.93
0.24
0.00
0.76
0.70
12.92

19
9.76
2.04
0.24
0.00
0.79
0.70
13.53

20
10.25
2.16
0.24
0.00
0.83
0.70
14.18

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.10 Rs/Kwh
3.21 Rs/Kwh
7.31 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
610.795

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

Unit
%
Rs Lakh

1
2.64%
16.12

2
5.28%
32.25

3
5.28%
32.25

4
5.28%
32.25

5
5.28%
32.25

6
5.28%
32.25

7
5.28%
32.25

8
5.28%
32.25

9
5.28%
32.25

10
5.28%
32.25

11
5.28%
32.25

12
5.28%
32.25

13
5.28%
32.25

14
5.28%
32.25

15
5.28%
32.25

16
5.28%
32.25

17
5.28%
32.25

18
2.88%
17.59

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
305.40

50.00%
45.00%
5%
274.86

5.00%
4.00%
1.00%
24.43

1.00%
0.80%
0.20%
4.89

0.20%
0.16%
0.04%
0.98

0.04%
0.03%
0.01%
0.20

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

289.27
100.12
2.53
3.95

242.61
83.97
6.31
1.33

-7.82
-2.71
6.31
-0.04

-27.36
-9.47
6.31
-0.15

-31.27
-10.82
6.31
-0.17

-32.05
-11.09
6.31
-0.18

-32.21
-11.15
6.31
-0.18

-32.24
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-17.59
-6.09
6.31
-0.10

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

0.63

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

0.20

(Rs/kWh)

111

Annexure 3.3. B
Select State

Harayana

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

610.80

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
427.557
183.239

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

427.557
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

183.239
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4126
4126
3195.86
3174
5.00%
47.26
5.72%
40.00

112

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
236.55
4.67

2
305.70
4.85

3
320.98
5.09

4
337.03
5.34

5
353.88
5.61

6
371.58
5.89

7
390.16
6.19

8
409.66
6.50

9
430.15
6.82

10
451.66
7.16

11
474.24
7.52

12
497.95
7.89

13
522.85
8.29

14
548.99
8.70

15
576.44
9.14

16
605.26
9.60

17
635.52
10.08

18
667.30
10.58

19
700.67
11.11

20
735.70
11.66

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.61
52.29
21.42
36.65
193.23
3.81

2
49.97
35.61
47.74
26.15
36.65
196.12
3.11

3
52.83
35.61
43.20
27.24
36.65
195.52
3.10

4
55.85
35.61
38.65
28.39
36.65
195.14
3.09

5
59.04
35.61
34.10
29.60
36.65
195.00
3.09

6
62.42
35.61
29.56
30.88
36.65
195.11
3.09

7
65.99
35.61
25.01
32.23
36.65
195.49
3.10

8
69.76
35.61
20.46
33.66
36.65
196.14
3.11

9
73.75
35.61
15.91
35.16
36.65
197.09
3.12

10
77.97
35.61
11.37
36.75
36.65
198.34
3.14

11
82.43
35.61
6.82
38.58
43.98
207.42
3.29

12
87.15
35.61
2.27
40.34
43.98
209.35
3.32

13
92.13
15.30
0.00
41.79
43.98
193.20
3.06

14
97.40
15.30
0.00
43.85
43.98
200.53
3.18

15
102.97
15.30
0.00
46.01
43.98
208.27
3.30

16
108.87
15.30
0.00
48.29
43.98
216.43
3.43

17
115.09
15.30
0.00
50.68
43.98
225.05
3.57

18
121.68
15.30
0.00
53.19
43.98
234.14
3.71

19
128.64
15.30
0.00
55.83
43.98
243.74
3.86

20
135.99
15.30
0.00
58.60
43.98
253.87
4.03

Levellised
6.52
1.14
0.52
0.44
0.54
0.63
9.78

1
4.67
0.93
0.70
1.03
0.42
0.72
8.48

2
4.85
0.79
0.56
0.76
0.41
0.58
7.96

3
5.09
0.84
0.56
0.68
0.43
0.58
8.19

4
5.34
0.89
0.56
0.61
0.45
0.58
8.44

5
5.61
0.94
0.56
0.54
0.47
0.58
8.70

6
5.89
0.99
0.56
0.47
0.49
0.58
8.98

7
6.19
1.05
0.56
0.40
0.51
0.58
9.29

8
6.50
1.11
0.56
0.32
0.53
0.58
9.60

9
6.82
1.17
0.56
0.25
0.56
0.58
9.94

10
7.16
1.24
0.56
0.18
0.58
0.58
10.31

11
7.52
1.31
0.56
0.11
0.61
0.70
10.81

12
7.89
1.38
0.56
0.04
0.64
0.70
11.21

13
8.29
1.46
0.24
0.00
0.66
0.70
11.35

14
8.70
1.54
0.24
0.00
0.70
0.70
11.88

15
9.14
1.63
0.24
0.00
0.73
0.70
12.44

16
9.60
1.73
0.24
0.00
0.77
0.70
13.03

17
10.08
1.82
0.24
0.00
0.80
0.70
13.64

18
10.58
1.93
0.24
0.00
0.84
0.70
14.29

19
11.11
2.04
0.24
0.00
0.89
0.70
14.97

20
11.66
2.16
0.24
0.00
0.93
0.70
15.69

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.67 Rs/Kwh
3.26 Rs/Kwh
7.93 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
610.795

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

Unit
%
Rs Lakh

1
2.64%
16.12

2
5.28%
32.25

3
5.28%
32.25

4
5.28%
32.25

5
5.28%
32.25

6
5.28%
32.25

7
5.28%
32.25

8
5.28%
32.25

9
5.28%
32.25

10
5.28%
32.25

11
5.28%
32.25

12
5.28%
32.25

13
5.28%
32.25

14
5.28%
32.25

15
5.28%
32.25

16
5.28%
32.25

17
5.28%
32.25

18
2.88%
17.59

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
305.40

50.00%
45.00%
5%
274.86

5.00%
4.00%
1.00%
24.43

1.00%
0.80%
0.20%
4.89

0.20%
0.16%
0.04%
0.98

0.04%
0.03%
0.01%
0.20

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

289.27
100.12
2.53
3.95

242.61
83.97
6.31
1.33

-7.82
-2.71
6.31
-0.04

-27.36
-9.47
6.31
-0.15

-31.27
-10.82
6.31
-0.17

-32.05
-11.09
6.31
-0.18

-32.21
-11.15
6.31
-0.18

-32.24
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-17.59
-6.09
6.31
-0.10

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

0.63

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

0.20

(Rs/kWh)

113

Annexure 3.3. C
Select State

Maharashtra

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

610.80

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
427.557
183.239

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

427.557
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

183.239
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4126
4126
3268.62
3174
5.00%
47.26
5.72%
40.00

114

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
241.94
4.77

2
312.66
4.96

3
328.29
5.21

4
344.71
5.47

5
361.94
5.74

6
380.04
6.03

7
399.04
6.33

8
418.99
6.64

9
439.94
6.98

10
461.94
7.32

11
485.04
7.69

12
509.29
8.07

13
534.75
8.48

14
561.49
8.90

15
589.56
9.35

16
619.04
9.81

17
649.99
10.31

18
682.49
10.82

19
716.62
11.36

20
752.45
11.93

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.61
52.29
21.78
36.65
193.60
3.82

2
49.97
35.61
47.74
26.62
36.65
196.59
3.12

3
52.83
35.61
43.20
27.74
36.65
196.01
3.11

4
55.85
35.61
38.65
28.91
36.65
195.66
3.10

5
59.04
35.61
34.10
30.15
36.65
195.55
3.10

6
62.42
35.61
29.56
31.46
36.65
195.69
3.10

7
65.99
35.61
25.01
32.84
36.65
196.09
3.11

8
69.76
35.61
20.46
34.29
36.65
196.77
3.12

9
73.75
35.61
15.91
35.82
36.65
197.75
3.14

10
77.97
35.61
11.37
37.44
36.65
199.04
3.16

11
82.43
35.61
6.82
39.31
43.98
208.15
3.30

12
87.15
35.61
2.27
41.11
43.98
210.12
3.33

13
92.13
15.30
0.00
42.60
43.98
194.01
3.08

14
97.40
15.30
0.00
44.70
43.98
201.38
3.19

15
102.97
15.30
0.00
46.90
43.98
209.15
3.32

16
108.87
15.30
0.00
49.22
43.98
217.36
3.45

17
115.09
15.30
0.00
51.66
43.98
226.03
3.58

18
121.68
15.30
0.00
54.22
43.98
235.17
3.73

19
128.64
15.30
0.00
56.91
43.98
244.82
3.88

20
135.99
15.30
0.00
59.74
43.98
255.01
4.04

Levellised
6.67
1.14
0.52
0.44
0.55
0.63
9.94

1
4.77
0.93
0.70
1.03
0.43
0.72
8.59

2
4.96
0.79
0.56
0.76
0.42
0.58
8.07

3
5.21
0.84
0.56
0.68
0.44
0.58
8.31

4
5.47
0.89
0.56
0.61
0.46
0.58
8.57

5
5.74
0.94
0.56
0.54
0.48
0.58
8.84

6
6.03
0.99
0.56
0.47
0.50
0.58
9.13

7
6.33
1.05
0.56
0.40
0.52
0.58
9.44

8
6.64
1.11
0.56
0.32
0.54
0.58
9.76

9
6.98
1.17
0.56
0.25
0.57
0.58
10.11

10
7.32
1.24
0.56
0.18
0.59
0.58
10.48

11
7.69
1.31
0.56
0.11
0.62
0.70
10.99

12
8.07
1.38
0.56
0.04
0.65
0.70
11.41

13
8.48
1.46
0.24
0.00
0.68
0.70
11.55

14
8.90
1.54
0.24
0.00
0.71
0.70
12.10

15
9.35
1.63
0.24
0.00
0.74
0.70
12.66

16
9.81
1.73
0.24
0.00
0.78
0.70
13.26

17
10.31
1.82
0.24
0.00
0.82
0.70
13.89

18
10.82
1.93
0.24
0.00
0.86
0.70
14.55

19
11.36
2.04
0.24
0.00
0.90
0.70
15.24

20
11.93
2.16
0.24
0.00
0.95
0.70
15.97

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.77 Rs/Kwh
3.27 Rs/Kwh
8.05 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
610.795

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

Unit
%
Rs Lakh

1
2.64%
16.12

2
5.28%
32.25

3
5.28%
32.25

4
5.28%
32.25

5
5.28%
32.25

6
5.28%
32.25

7
5.28%
32.25

8
5.28%
32.25

9
5.28%
32.25

10
5.28%
32.25

11
5.28%
32.25

12
5.28%
32.25

13
5.28%
32.25

14
5.28%
32.25

15
5.28%
32.25

16
5.28%
32.25

17
5.28%
32.25

18
2.88%
17.59

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
305.40

50.00%
45.00%
5%
274.86

5.00%
4.00%
1.00%
24.43

1.00%
0.80%
0.20%
4.89

0.20%
0.16%
0.04%
0.98

0.04%
0.03%
0.01%
0.20

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

289.27
100.12
2.53
3.95

242.61
83.97
6.31
1.33

-7.82
-2.71
6.31
-0.04

-27.36
-9.47
6.31
-0.15

-31.27
-10.82
6.31
-0.17

-32.05
-11.09
6.31
-0.18

-32.21
-11.15
6.31
-0.18

-32.24
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-17.59
-6.09
6.31
-0.10

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

0.63

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

0.20

(Rs/kWh)

115

Annexure 3.3. D
Select State

Punjab

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

610.80

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
427.557
183.239

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

427.557
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

183.239
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4126
4126
3342.60
3174
5.00%
47.26
5.72%
40.00

116

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
247.41
4.88

2
319.73
5.07

3
335.72
5.32

4
352.51
5.59

5
370.13
5.87

6
388.64
6.16

7
408.07
6.47

8
428.48
6.79

9
449.90
7.13

10
472.39
7.49

11
496.01
7.86

12
520.81
8.26

13
546.86
8.67

14
574.20
9.10

15
602.91
9.56

16
633.05
10.04

17
664.71
10.54

18
697.94
11.07

19
732.84
11.62

20
769.48
12.20

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.61
52.29
22.16
36.65
193.97
3.83

2
49.97
35.61
47.74
27.10
36.65
197.07
3.12

3
52.83
35.61
43.20
28.24
36.65
196.52
3.12

4
55.85
35.61
38.65
29.44
36.65
196.19
3.11

5
59.04
35.61
34.10
30.70
36.65
196.11
3.11

6
62.42
35.61
29.56
32.04
36.65
196.27
3.11

7
65.99
35.61
25.01
33.45
36.65
196.70
3.12

8
69.76
35.61
20.46
34.93
36.65
197.42
3.13

9
73.75
35.61
15.91
36.50
36.65
198.43
3.15

10
77.97
35.61
11.37
38.15
36.65
199.75
3.17

11
82.43
35.61
6.82
40.06
43.98
208.90
3.31

12
87.15
35.61
2.27
41.89
43.98
210.90
3.34

13
92.13
15.30
0.00
43.42
43.98
194.83
3.09

14
97.40
15.30
0.00
45.56
43.98
202.24
3.21

15
102.97
15.30
0.00
47.81
43.98
210.06
3.33

16
108.87
15.30
0.00
50.17
43.98
218.31
3.46

17
115.09
15.30
0.00
52.65
43.98
227.02
3.60

18
121.68
15.30
0.00
55.27
43.98
236.22
3.75

19
128.64
15.30
0.00
58.01
43.98
245.92
3.90

20
135.99
15.30
0.00
60.89
43.98
256.16
4.06

Levellised
6.82
1.14
0.52
0.44
0.56
0.63
10.10

1
4.88
0.93
0.70
1.03
0.44
0.72
8.71

2
5.07
0.79
0.56
0.76
0.43
0.58
8.19

3
5.32
0.84
0.56
0.68
0.45
0.58
8.44

4
5.59
0.89
0.56
0.61
0.47
0.58
8.70

5
5.87
0.94
0.56
0.54
0.49
0.58
8.98

6
6.16
0.99
0.56
0.47
0.51
0.58
9.27

7
6.47
1.05
0.56
0.40
0.53
0.58
9.59

8
6.79
1.11
0.56
0.32
0.55
0.58
9.92

9
7.13
1.17
0.56
0.25
0.58
0.58
10.28

10
7.49
1.24
0.56
0.18
0.60
0.58
10.66

11
7.86
1.31
0.56
0.11
0.64
0.70
11.18

12
8.26
1.38
0.56
0.04
0.66
0.70
11.60

13
8.67
1.46
0.24
0.00
0.69
0.70
11.76

14
9.10
1.54
0.24
0.00
0.72
0.70
12.31

15
9.56
1.63
0.24
0.00
0.76
0.70
12.89

16
10.04
1.73
0.24
0.00
0.80
0.70
13.50

17
10.54
1.82
0.24
0.00
0.83
0.70
14.14

18
11.07
1.93
0.24
0.00
0.88
0.70
14.81

19
11.62
2.04
0.24
0.00
0.92
0.70
15.52

20
12.20
2.16
0.24
0.00
0.97
0.70
16.26

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.88 Rs/Kwh
3.28 Rs/Kwh
8.17 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
610.795

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

Unit
%
Rs Lakh

1
2.64%
16.12

2
5.28%
32.25

3
5.28%
32.25

4
5.28%
32.25

5
5.28%
32.25

6
5.28%
32.25

7
5.28%
32.25

8
5.28%
32.25

9
5.28%
32.25

10
5.28%
32.25

11
5.28%
32.25

12
5.28%
32.25

13
5.28%
32.25

14
5.28%
32.25

15
5.28%
32.25

16
5.28%
32.25

17
5.28%
32.25

18
2.88%
17.59

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
305.40

50.00%
45.00%
5%
274.86

5.00%
4.00%
1.00%
24.43

1.00%
0.80%
0.20%
4.89

0.20%
0.16%
0.04%
0.98

0.04%
0.03%
0.01%
0.20

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

289.27
100.12
2.53
3.95

242.61
83.97
6.31
1.33

-7.82
-2.71
6.31
-0.04

-27.36
-9.47
6.31
-0.15

-31.27
-10.82
6.31
-0.17

-32.05
-11.09
6.31
-0.18

-32.21
-11.15
6.31
-0.18

-32.24
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-17.59
-6.09
6.31
-0.10

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

0.63

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

0.20

(Rs/kWh)

117

Annexure 3.3 E

Select State

Rajasthan

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

610.80

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
427.557
183.239

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

427.557
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

183.239
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4126
4126
2789.54
3174
5.00%
47.26
5.72%
40.00

118

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
206.48
4.07

2
266.83
4.23

3
280.17
4.44

4
294.18
4.66

5
308.89
4.90

6
324.34
5.14

7
340.55
5.40

8
357.58
5.67

9
375.46
5.95

10
394.23
6.25

11
413.94
6.56

12
434.64
6.89

13
456.37
7.24

14
479.19
7.60

15
503.15
7.98

16
528.31
8.38

17
554.73
8.80

18
582.46
9.23

19
611.59
9.70

20
642.16
10.18

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.61
52.29
19.38
36.65
191.19
3.77

2
49.97
35.61
47.74
23.52
36.65
193.48
3.07

3
52.83
35.61
43.20
24.47
36.65
192.75
3.06

4
55.85
35.61
38.65
25.48
36.65
192.24
3.05

5
59.04
35.61
34.10
26.55
36.65
191.95
3.04

6
62.42
35.61
29.56
27.68
36.65
191.91
3.04

7
65.99
35.61
25.01
28.87
36.65
192.12
3.05

8
69.76
35.61
20.46
30.13
36.65
192.61
3.05

9
73.75
35.61
15.91
31.45
36.65
193.38
3.07

10
77.97
35.61
11.37
32.85
36.65
194.45
3.08

11
82.43
35.61
6.82
34.49
43.98
203.33
3.22

12
87.15
35.61
2.27
36.05
43.98
205.06
3.25

13
92.13
15.30
0.00
37.28
43.98
188.69
2.99

14
97.40
15.30
0.00
39.12
43.98
195.80
3.10

15
102.97
15.30
0.00
41.04
43.98
203.30
3.22

16
108.87
15.30
0.00
43.07
43.98
211.21
3.35

17
115.09
15.30
0.00
45.20
43.98
219.57
3.48

18
121.68
15.30
0.00
47.44
43.98
228.39
3.62

19
128.64
15.30
0.00
49.79
43.98
237.70
3.77

20
135.99
15.30
0.00
52.26
43.98
247.53
3.92

Levellised
5.69
1.14
0.52
0.44
0.48
0.63
8.90

1
4.07
0.93
0.70
1.03
0.38
0.72
7.85

2
4.23
0.79
0.56
0.76
0.37
0.58
7.30

3
4.44
0.84
0.56
0.68
0.39
0.58
7.50

4
4.66
0.89
0.56
0.61
0.40
0.58
7.71

5
4.90
0.94
0.56
0.54
0.42
0.58
7.94

6
5.14
0.99
0.56
0.47
0.44
0.58
8.19

7
5.40
1.05
0.56
0.40
0.46
0.58
8.45

8
5.67
1.11
0.56
0.32
0.48
0.58
8.72

9
5.95
1.17
0.56
0.25
0.50
0.58
9.02

10
6.25
1.24
0.56
0.18
0.52
0.58
9.33

11
6.56
1.31
0.56
0.11
0.55
0.70
9.79

12
6.89
1.38
0.56
0.04
0.57
0.70
10.14

13
7.24
1.46
0.24
0.00
0.59
0.70
10.23

14
7.60
1.54
0.24
0.00
0.62
0.70
10.70

15
7.98
1.63
0.24
0.00
0.65
0.70
11.20

16
8.38
1.73
0.24
0.00
0.68
0.70
11.73

17
8.80
1.82
0.24
0.00
0.72
0.70
12.28

18
9.23
1.93
0.24
0.00
0.75
0.70
12.86

19
9.70
2.04
0.24
0.00
0.79
0.70
13.47

20
10.18
2.16
0.24
0.00
0.83
0.70
14.11

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.07 Rs/Kwh
3.21 Rs/Kwh
7.28 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
610.795

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

Unit
%
Rs Lakh

1
2.64%
16.12

2
5.28%
32.25

3
5.28%
32.25

4
5.28%
32.25

5
5.28%
32.25

6
5.28%
32.25

7
5.28%
32.25

8
5.28%
32.25

9
5.28%
32.25

10
5.28%
32.25

11
5.28%
32.25

12
5.28%
32.25

13
5.28%
32.25

14
5.28%
32.25

15
5.28%
32.25

16
5.28%
32.25

17
5.28%
32.25

18
2.88%
17.59

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
305.40

50.00%
45.00%
5%
274.86

5.00%
4.00%
1.00%
24.43

1.00%
0.80%
0.20%
4.89

0.20%
0.16%
0.04%
0.98

0.04%
0.03%
0.01%
0.20

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

289.27
100.12
2.53
3.95

242.61
83.97
6.31
1.33

-7.82
-2.71
6.31
-0.04

-27.36
-9.47
6.31
-0.15

-31.27
-10.82
6.31
-0.17

-32.05
-11.09
6.31
-0.18

-32.21
-11.15
6.31
-0.18

-32.24
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-17.59
-6.09
6.31
-0.10

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

0.63

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

0.20

(Rs/kWh)

119

Annexure 3.3. F
Select State

TN

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

610.80

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
427.557
183.239

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

427.557
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

183.239
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4126
4126
2761.64
3174
5.00%
47.26
5.72%
40.00

120

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
204.41
4.03

2
264.16
4.19

3
277.37
4.40

4
291.24
4.62

5
305.80
4.85

6
321.09
5.09

7
337.15
5.35

8
354.00
5.61

9
371.70
5.89

10
390.29
6.19

11
409.80
6.50

12
430.29
6.82

13
451.81
7.16

14
474.40
7.52

15
498.12
7.90

16
523.03
8.29

17
549.18
8.71

18
576.64
9.14

19
605.47
9.60

20
635.74
10.08

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.61
52.29
19.24
36.65
191.05
3.77

2
49.97
35.61
47.74
23.33
36.65
193.30
3.06

3
52.83
35.61
43.20
24.28
36.65
192.56
3.05

4
55.85
35.61
38.65
25.28
36.65
192.04
3.04

5
59.04
35.61
34.10
26.34
36.65
191.74
3.04

6
62.42
35.61
29.56
27.46
36.65
191.69
3.04

7
65.99
35.61
25.01
28.64
36.65
191.89
3.04

8
69.76
35.61
20.46
29.88
36.65
192.37
3.05

9
73.75
35.61
15.91
31.20
36.65
193.12
3.06

10
77.97
35.61
11.37
32.58
36.65
194.18
3.08

11
82.43
35.61
6.82
34.21
43.98
203.05
3.22

12
87.15
35.61
2.27
35.75
43.98
204.76
3.25

13
92.13
15.30
0.00
36.97
43.98
188.38
2.99

14
97.40
15.30
0.00
38.79
43.98
195.47
3.10

15
102.97
15.30
0.00
40.70
43.98
202.95
3.22

16
108.87
15.30
0.00
42.71
43.98
210.85
3.34

17
115.09
15.30
0.00
44.82
43.98
219.19
3.48

18
121.68
15.30
0.00
47.04
43.98
227.99
3.61

19
128.64
15.30
0.00
49.37
43.98
237.29
3.76

20
135.99
15.30
0.00
51.82
43.98
247.10
3.92

Levellised
5.63
1.14
0.52
0.44
0.48
0.63
8.84

1
4.03
0.93
0.70
1.03
0.38
0.72
7.80

2
4.19
0.79
0.56
0.76
0.37
0.58
7.25

3
4.40
0.84
0.56
0.68
0.39
0.58
7.45

4
4.62
0.89
0.56
0.61
0.40
0.58
7.66

5
4.85
0.94
0.56
0.54
0.42
0.58
7.89

6
5.09
0.99
0.56
0.47
0.44
0.58
8.13

7
5.35
1.05
0.56
0.40
0.45
0.58
8.39

8
5.61
1.11
0.56
0.32
0.47
0.58
8.66

9
5.89
1.17
0.56
0.25
0.49
0.58
8.96

10
6.19
1.24
0.56
0.18
0.52
0.58
9.27

11
6.50
1.31
0.56
0.11
0.54
0.70
9.72

12
6.82
1.38
0.56
0.04
0.57
0.70
10.07

13
7.16
1.46
0.24
0.00
0.59
0.70
10.15

14
7.52
1.54
0.24
0.00
0.62
0.70
10.62

15
7.90
1.63
0.24
0.00
0.65
0.70
11.12

16
8.29
1.73
0.24
0.00
0.68
0.70
11.64

17
8.71
1.82
0.24
0.00
0.71
0.70
12.18

18
9.14
1.93
0.24
0.00
0.75
0.70
12.76

19
9.60
2.04
0.24
0.00
0.78
0.70
13.36

20
10.08
2.16
0.24
0.00
0.82
0.70
14.00

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.03 Rs/Kwh
3.20 Rs/Kwh
7.24 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
610.795

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

Unit
%
Rs Lakh

1
2.64%
16.12

2
5.28%
32.25

3
5.28%
32.25

4
5.28%
32.25

5
5.28%
32.25

6
5.28%
32.25

7
5.28%
32.25

8
5.28%
32.25

9
5.28%
32.25

10
5.28%
32.25

11
5.28%
32.25

12
5.28%
32.25

13
5.28%
32.25

14
5.28%
32.25

15
5.28%
32.25

16
5.28%
32.25

17
5.28%
32.25

18
2.88%
17.59

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
305.40

50.00%
45.00%
5%
274.86

5.00%
4.00%
1.00%
24.43

1.00%
0.80%
0.20%
4.89

0.20%
0.16%
0.04%
0.98

0.04%
0.03%
0.01%
0.20

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

289.27
100.12
2.53
3.95

242.61
83.97
6.31
1.33

-7.82
-2.71
6.31
-0.04

-27.36
-9.47
6.31
-0.15

-31.27
-10.82
6.31
-0.17

-32.05
-11.09
6.31
-0.18

-32.21
-11.15
6.31
-0.18

-32.24
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-17.59
-6.09
6.31
-0.10

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

0.63

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

0.20

(Rs/kWh)

121

Annexure 3.3 G
Select State

UP

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

610.80

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
427.557
183.239

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

427.557
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

183.239
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80 IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4126
4126
2856.25
3174
5.00%
47.26
5.72%
40.00

122

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
211.41
4.17

2
273.21
4.33

3
286.87
4.55

4
301.22
4.78

5
316.28
5.01

6
332.09
5.27

7
348.70
5.53

8
366.13
5.80

9
384.44
6.10

10
403.66
6.40

11
423.84
6.72

12
445.04
7.06

13
467.29
7.41

14
490.65
7.78

15
515.18
8.17

16
540.94
8.58

17
567.99
9.01

18
596.39
9.46

19
626.21
9.93

20
657.52
10.42

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.61
52.29
19.71
36.65
191.53
3.78

2
49.97
35.61
47.74
23.95
36.65
193.92
3.07

3
52.83
35.61
43.20
24.93
36.65
193.21
3.06

4
55.85
35.61
38.65
25.96
36.65
192.71
3.06

5
59.04
35.61
34.10
27.05
36.65
192.45
3.05

6
62.42
35.61
29.56
28.21
36.65
192.44
3.05

7
65.99
35.61
25.01
29.42
36.65
192.68
3.05

8
69.76
35.61
20.46
30.71
36.65
193.19
3.06

9
73.75
35.61
15.91
32.06
36.65
193.99
3.08

10
77.97
35.61
11.37
33.49
36.65
195.09
3.09

11
82.43
35.61
6.82
35.16
43.98
204.00
3.23

12
87.15
35.61
2.27
36.75
43.98
205.76
3.26

13
92.13
15.30
0.00
38.02
43.98
189.43
3.00

14
97.40
15.30
0.00
39.89
43.98
196.57
3.12

15
102.97
15.30
0.00
41.86
43.98
204.11
3.24

16
108.87
15.30
0.00
43.93
43.98
212.07
3.36

17
115.09
15.30
0.00
46.10
43.98
220.47
3.50

18
121.68
15.30
0.00
48.38
43.98
229.33
3.64

19
128.64
15.30
0.00
50.78
43.98
238.69
3.78

20
135.99
15.30
0.00
53.30
43.98
248.57
3.94

Levellised
5.82
1.14
0.52
0.44
0.49
0.63
9.04

1
4.17
0.93
0.70
1.03
0.39
0.72
7.95

2
4.33
0.79
0.56
0.76
0.38
0.58
7.41

3
4.55
0.84
0.56
0.68
0.40
0.58
7.61

4
4.78
0.89
0.56
0.61
0.41
0.58
7.83

5
5.01
0.94
0.56
0.54
0.43
0.58
8.07

6
5.27
0.99
0.56
0.47
0.45
0.58
8.32

7
5.53
1.05
0.56
0.40
0.47
0.58
8.58

8
5.80
1.11
0.56
0.32
0.49
0.58
8.87

9
6.10
1.17
0.56
0.25
0.51
0.58
9.17

10
6.40
1.24
0.56
0.18
0.53
0.58
9.49

11
6.72
1.31
0.56
0.11
0.56
0.70
9.95

12
7.06
1.38
0.56
0.04
0.58
0.70
10.32

13
7.41
1.46
0.24
0.00
0.60
0.70
10.41

14
7.78
1.54
0.24
0.00
0.63
0.70
10.90

15
8.17
1.63
0.24
0.00
0.66
0.70
11.40

16
8.58
1.73
0.24
0.00
0.70
0.70
11.94

17
9.01
1.82
0.24
0.00
0.73
0.70
12.50

18
9.46
1.93
0.24
0.00
0.77
0.70
13.09

19
9.93
2.04
0.24
0.00
0.81
0.70
13.71

20
10.42
2.16
0.24
0.00
0.85
0.70
14.37

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.17 Rs/Kwh
3.22 Rs/Kwh
7.39 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
610.795

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

Unit
%
Rs Lakh

1
2.64%
16.12

2
5.28%
32.25

3
5.28%
32.25

4
5.28%
32.25

5
5.28%
32.25

6
5.28%
32.25

7
5.28%
32.25

8
5.28%
32.25

9
5.28%
32.25

10
5.28%
32.25

11
5.28%
32.25

12
5.28%
32.25

13
5.28%
32.25

14
5.28%
32.25

15
5.28%
32.25

16
5.28%
32.25

17
5.28%
32.25

18
2.88%
17.59

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
305.40

50.00%
45.00%
5%
274.86

5.00%
4.00%
1.00%
24.43

1.00%
0.80%
0.20%
4.89

0.20%
0.16%
0.04%
0.98

0.04%
0.03%
0.01%
0.20

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

289.27
100.12
2.53
3.95

242.61
83.97
6.31
1.33

-7.82
-2.71
6.31
-0.04

-27.36
-9.47
6.31
-0.15

-31.27
-10.82
6.31
-0.17

-32.05
-11.09
6.31
-0.18

-32.21
-11.15
6.31
-0.18

-32.24
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-17.59
-6.09
6.31
-0.10

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

0.63

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

0.20

(Rs/kWh)

123

Annexure 3.3 H
Select State

Others

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

610.80

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
427.557
183.239

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

427.557
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

183.239
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4126
4126
3003.01
3174
5.00%
47.26
5.72%
40.00

124

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
222.28
4.39

2
287.25
4.55

3
301.61
4.78

4
316.70
5.02

5
332.53
5.27

6
349.16
5.54

7
366.61
5.81

8
384.94
6.10

9
404.19
6.41

10
424.40
6.73

11
445.62
7.07

12
467.90
7.42

13
491.30
7.79

14
515.86
8.18

15
541.66
8.59

16
568.74
9.02

17
597.18
9.47

18
627.03
9.94

19
658.39
10.44

20
691.31
10.96

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.61
52.29
20.45
36.65
192.26
3.79

2
49.97
35.61
47.74
24.90
36.65
194.87
3.09

3
52.83
35.61
43.20
25.93
36.65
194.21
3.08

4
55.85
35.61
38.65
27.01
36.65
193.76
3.07

5
59.04
35.61
34.10
28.15
36.65
193.56
3.07

6
62.42
35.61
29.56
29.36
36.65
193.59
3.07

7
65.99
35.61
25.01
30.64
36.65
193.89
3.07

8
69.76
35.61
20.46
31.98
36.65
194.46
3.08

9
73.75
35.61
15.91
33.40
36.65
195.33
3.10

10
77.97
35.61
11.37
34.90
36.65
196.49
3.12

11
82.43
35.61
6.82
36.64
43.98
205.48
3.26

12
87.15
35.61
2.27
38.30
43.98
207.31
3.29

13
92.13
15.30
0.00
39.65
43.98
191.06
3.03

14
97.40
15.30
0.00
41.60
43.98
198.28
3.14

15
102.97
15.30
0.00
43.65
43.98
205.91
3.26

16
108.87
15.30
0.00
45.81
43.98
213.95
3.39

17
115.09
15.30
0.00
48.08
43.98
222.45
3.53

18
121.68
15.30
0.00
50.46
43.98
231.41
3.67

19
128.64
15.30
0.00
52.96
43.98
240.87
3.82

20
135.99
15.30
0.00
55.59
43.98
250.86
3.98

Levellised
6.12
1.14
0.52
0.44
0.51
0.63
9.36

1
4.39
0.93
0.70
1.03
0.40
0.72
8.18

2
4.55
0.79
0.56
0.76
0.39
0.58
7.64

3
4.78
0.84
0.56
0.68
0.41
0.58
7.86

4
5.02
0.89
0.56
0.61
0.43
0.58
8.09

5
5.27
0.94
0.56
0.54
0.45
0.58
8.34

6
5.54
0.99
0.56
0.47
0.47
0.58
8.61

7
5.81
1.05
0.56
0.40
0.49
0.58
8.89

8
6.10
1.11
0.56
0.32
0.51
0.58
9.19

9
6.41
1.17
0.56
0.25
0.53
0.58
9.51

10
6.73
1.24
0.56
0.18
0.55
0.58
9.84

11
7.07
1.31
0.56
0.11
0.58
0.70
10.32

12
7.42
1.38
0.56
0.04
0.61
0.70
10.71

13
7.79
1.46
0.24
0.00
0.63
0.70
10.82

14
8.18
1.54
0.24
0.00
0.66
0.70
11.32

15
8.59
1.63
0.24
0.00
0.69
0.70
11.85

16
9.02
1.73
0.24
0.00
0.73
0.70
12.41

17
9.47
1.82
0.24
0.00
0.76
0.70
13.00

18
9.94
1.93
0.24
0.00
0.80
0.70
13.61

19
10.44
2.04
0.24
0.00
0.84
0.70
14.26

20
10.96
2.16
0.24
0.00
0.88
0.70
14.94

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.39 Rs/Kwh
3.24 Rs/Kwh
7.62 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
610.795

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

Unit
%
Rs Lakh

1
2.64%
16.12

2
5.28%
32.25

3
5.28%
32.25

4
5.28%
32.25

5
5.28%
32.25

6
5.28%
32.25

7
5.28%
32.25

8
5.28%
32.25

9
5.28%
32.25

10
5.28%
32.25

11
5.28%
32.25

12
5.28%
32.25

13
5.28%
32.25

14
5.28%
32.25

15
5.28%
32.25

16
5.28%
32.25

17
5.28%
32.25

18
2.88%
17.59

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
305.40

50.00%
45.00%
5%
274.86

5.00%
4.00%
1.00%
24.43

1.00%
0.80%
0.20%
4.89

0.20%
0.16%
0.04%
0.98

0.04%
0.03%
0.01%
0.20

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

289.27
100.12
2.53
3.95

242.61
83.97
6.31
1.33

-7.82
-2.71
6.31
-0.04

-27.36
-9.47
6.31
-0.15

-31.27
-10.82
6.31
-0.17

-32.05
-11.09
6.31
-0.18

-32.21
-11.15
6.31
-0.18

-32.24
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-17.59
-6.09
6.31
-0.10

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

0.63

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

0.20

(Rs/kWh)

125

Annexure 3.4. A
Biomass Power Projects (Rice Straw & Juliflore (plantation) based projects) with air cooled condenser and
using Travelling Grate Boiler
Select State

AP

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

652.20

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
456.54
195.66

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

456.54
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

195.66
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.61%
21.000%
Yes
5.83%
2.51%
12.00

1
15%
2
4
13.26%
4126
4126
2807.74
3174
5.00%
47.26
5.72%
40.00

126

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
207.82
4.20

2
268.57
4.35

3
282.00
4.57

4
296.10
4.80

5
310.91
5.04

6
326.45
5.29

7
342.77
5.56

8
359.91
5.84

9
377.91
6.13

10
396.80
6.43

11
416.65
6.76

12
437.48
7.09

13
459.35
7.45

14
482.32
7.82

15
506.43
8.21

16
531.76
8.62

17
558.34
9.05

18
586.26
9.51

19
615.57
9.98

20
646.35
10.48

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
38.02
55.83
19.66
39.13
199.92
4.04

2
49.97
38.02
50.98
23.82
39.13
201.92
3.27

3
52.83
38.02
46.12
24.77
39.13
200.88
3.26

4
55.85
38.02
41.27
25.78
39.13
200.06
3.24

5
59.04
38.02
36.41
26.85
39.13
199.46
3.23

6
62.42
38.02
31.56
27.98
39.13
199.11
3.23

7
65.99
38.02
26.70
29.17
39.13
199.02
3.23

8
69.76
38.02
21.85
30.43
39.13
199.20
3.23

9
73.75
38.02
16.99
31.75
39.13
199.66
3.24

10
77.97
38.02
12.14
33.15
39.13
200.42
3.25

11
82.43
38.02
7.28
34.81
46.96
209.51
3.40

12
87.15
38.02
2.43
36.37
46.96
210.93
3.42

13
92.13
16.34
0.00
37.58
46.96
193.01
3.13

14
97.40
16.34
0.00
39.42
46.96
200.12
3.24

15
102.97
16.34
0.00
41.36
46.96
207.63
3.37

16
108.87
16.34
0.00
43.39
46.96
215.55
3.50

17
115.09
16.34
0.00
45.53
46.96
223.92
3.63

18
121.68
16.34
0.00
47.78
46.96
232.76
3.77

19
128.64
16.34
0.00
50.15
46.96
242.08
3.93

20
135.99
16.34
0.00
52.64
46.96
251.92
4.09

Levellised
5.86
1.16
0.57
0.48
0.50
0.69
9.25

1
4.20
0.95
0.77
1.13
0.40
0.79
8.23

2
4.35
0.81
0.62
0.83
0.39
0.63
7.63

3
4.57
0.86
0.62
0.75
0.40
0.63
7.83

4
4.80
0.91
0.62
0.67
0.42
0.63
8.05

5
5.04
0.96
0.62
0.59
0.44
0.63
8.28

6
5.29
1.01
0.62
0.51
0.45
0.63
8.52

7
5.56
1.07
0.62
0.43
0.47
0.63
8.79

8
5.84
1.13
0.62
0.35
0.49
0.63
9.07

9
6.13
1.20
0.62
0.28
0.51
0.63
9.37

10
6.43
1.26
0.62
0.20
0.54
0.63
9.68

11
6.76
1.34
0.62
0.12
0.56
0.76
10.15

12
7.09
1.41
0.62
0.04
0.59
0.76
10.51

13
7.45
1.49
0.26
0.00
0.61
0.76
10.58

14
7.82
1.58
0.26
0.00
0.64
0.76
11.07

15
8.21
1.67
0.26
0.00
0.67
0.76
11.58

16
8.62
1.77
0.26
0.00
0.70
0.76
12.12

17
9.05
1.87
0.26
0.00
0.74
0.76
12.68

18
9.51
1.97
0.26
0.00
0.77
0.76
13.28

19
9.98
2.09
0.26
0.00
0.81
0.76
13.91

20
10.48
2.21
0.26
0.00
0.85
0.76
14.57

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.20 Rs/Kwh
3.40 Rs/Kwh
7.59 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
652.205

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

Unit
%
Rs Lakh

1
2.64%
17.22

2
5.28%
34.44

3
5.28%
34.44

4
5.28%
34.44

5
5.28%
34.44

6
5.28%
34.44

7
5.28%
34.44

8
5.28%
34.44

9
5.28%
34.44

10
5.28%
34.44

11
5.28%
34.44

12
5.28%
34.44

13
5.28%
34.44

14
5.28%
34.44

15
5.28%
34.44

16
5.28%
34.44

17
5.28%
34.44

18
2.88%
18.78

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
326.10

50.00%
45.00%
5%
293.49

5.00%
4.00%
1.00%
26.09

1.00%
0.80%
0.20%
5.22

0.20%
0.16%
0.04%
1.04

0.04%
0.03%
0.01%
0.21

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

308.88
106.90
2.48
4.32

259.06
89.66
6.17
1.45

-8.35
-2.89
6.17
-0.05

-29.22
-10.11
6.17
-0.16

-33.39
-11.56
6.17
-0.19

-34.23
-11.85
6.17
-0.19

-34.39
-11.90
6.17
-0.19

-34.43
-11.92
6.17
-0.19

-34.43
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-18.78
-6.50
6.17
-0.11

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.22

(Rs/kWh)

127

Annexure 3.4 B
Select State

Harayana

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

652.20

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
456.54
195.66

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

456.54
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

195.66
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.61%
21.000%
Yes
5.83%
2.51%
12.00

1
15%
2
4
13.26%
4126
4126
3195.86
3174
5.00%
47.26
5.72%
40.00

128

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
236.55
4.78

2
305.70
4.96

3
320.98
5.20

4
337.03
5.47

5
353.88
5.74

6
371.58
6.03

7
390.16
6.33

8
409.66
6.64

9
430.15
6.97

10
451.66
7.32

11
474.24
7.69

12
497.95
8.07

13
522.85
8.48

14
548.99
8.90

15
576.44
9.35

16
605.26
9.81

17
635.52
10.31

18
667.30
10.82

19
700.67
11.36

20
735.70
11.93

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
38.02
55.83
21.61
39.13
201.86
4.07

2
49.97
38.02
50.98
26.34
39.13
204.44
3.32

3
52.83
38.02
46.12
27.42
39.13
203.52
3.30

4
55.85
38.02
41.27
28.56
39.13
202.83
3.29

5
59.04
38.02
36.41
29.77
39.13
202.38
3.28

6
62.42
38.02
31.56
31.04
39.13
202.17
3.28

7
65.99
38.02
26.70
32.38
39.13
202.23
3.28

8
69.76
38.02
21.85
33.80
39.13
202.57
3.28

9
73.75
38.02
16.99
35.30
39.13
203.20
3.29

10
77.97
38.02
12.14
36.87
39.13
204.14
3.31

11
82.43
38.02
7.28
38.71
46.96
213.41
3.46

12
87.15
38.02
2.43
40.47
46.96
215.03
3.49

13
92.13
16.34
0.00
41.88
46.96
197.31
3.20

14
97.40
16.34
0.00
43.94
46.96
204.64
3.32

15
102.97
16.34
0.00
46.10
46.96
212.37
3.44

16
108.87
16.34
0.00
48.38
46.96
220.54
3.58

17
115.09
16.34
0.00
50.77
46.96
229.16
3.72

18
121.68
16.34
0.00
53.28
46.96
238.25
3.86

19
128.64
16.34
0.00
55.92
46.96
247.85
4.02

20
135.99
16.34
0.00
58.69
46.96
257.98
4.18

Levellised
6.67
1.16
0.57
0.48
0.55
0.69
10.12

1
4.78
0.95
0.77
1.13
0.44
0.79
8.85

2
4.96
0.81
0.62
0.83
0.43
0.63
8.27

3
5.20
0.86
0.62
0.75
0.44
0.63
8.50

4
5.47
0.91
0.62
0.67
0.46
0.63
8.75

5
5.74
0.96
0.62
0.59
0.48
0.63
9.02

6
6.03
1.01
0.62
0.51
0.50
0.63
9.30

7
6.33
1.07
0.62
0.43
0.53
0.63
9.61

8
6.64
1.13
0.62
0.35
0.55
0.63
9.93

9
6.97
1.20
0.62
0.28
0.57
0.63
10.27

10
7.32
1.26
0.62
0.20
0.60
0.63
10.63

11
7.69
1.34
0.62
0.12
0.63
0.76
11.15

12
8.07
1.41
0.62
0.04
0.66
0.76
11.56

13
8.48
1.49
0.26
0.00
0.68
0.76
11.68

14
8.90
1.58
0.26
0.00
0.71
0.76
12.22

15
9.35
1.67
0.26
0.00
0.75
0.76
12.79

16
9.81
1.77
0.26
0.00
0.78
0.76
13.39

17
10.31
1.87
0.26
0.00
0.82
0.76
14.02

18
10.82
1.97
0.26
0.00
0.86
0.76
14.68

19
11.36
2.09
0.26
0.00
0.91
0.76
15.38

20
11.93
2.21
0.26
0.00
0.95
0.76
16.11

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.78 Rs/Kwh
3.45 Rs/Kwh
8.23 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
652.205

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

Unit
%
Rs Lakh

1
2.64%
17.22

2
5.28%
34.44

3
5.28%
34.44

4
5.28%
34.44

5
5.28%
34.44

6
5.28%
34.44

7
5.28%
34.44

8
5.28%
34.44

9
5.28%
34.44

10
5.28%
34.44

11
5.28%
34.44

12
5.28%
34.44

13
5.28%
34.44

14
5.28%
34.44

15
5.28%
34.44

16
5.28%
34.44

17
5.28%
34.44

18
2.88%
18.78

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
326.10

50.00%
45.00%
5%
293.49

5.00%
4.00%
1.00%
26.09

1.00%
0.80%
0.20%
5.22

0.20%
0.16%
0.04%
1.04

0.04%
0.03%
0.01%
0.21

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

308.88
106.90
2.48
4.32

259.06
89.66
6.17
1.45

-8.35
-2.89
6.17
-0.05

-29.22
-10.11
6.17
-0.16

-33.39
-11.56
6.17
-0.19

-34.23
-11.85
6.17
-0.19

-34.39
-11.90
6.17
-0.19

-34.43
-11.92
6.17
-0.19

-34.43
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-18.78
-6.50
6.17
-0.11

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.22

(Rs/kWh)

129

Annexure 3.4 C
Select State

Maharashtra

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

652.20

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
456.54
195.66

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

456.54
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

195.66
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80 IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.61%
21.000%
Yes
5.83%
2.51%
12.00

1
15%
2
4
13.26%
4126
4126
3268.62
3174
5.00%
47.26
5.72%
40.00

130

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
241.94
4.88

2
312.66
5.07

3
328.29
5.32

4
344.71
5.59

5
361.94
5.87

6
380.04
6.16

7
399.04
6.47

8
418.99
6.79

9
439.94
7.13

10
461.94
7.49

11
485.04
7.86

12
509.29
8.26

13
534.75
8.67

14
561.49
9.10

15
589.56
9.56

16
619.04
10.04

17
649.99
10.54

18
682.49
11.07

19
716.62
11.62

20
752.45
12.20

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
38.02
55.83
21.97
39.13
202.23
4.08

2
49.97
38.02
50.98
26.81
39.13
204.91
3.32

3
52.83
38.02
46.12
27.91
39.13
204.02
3.31

4
55.85
38.02
41.27
29.08
39.13
203.35
3.30

5
59.04
38.02
36.41
30.31
39.13
202.92
3.29

6
62.42
38.02
31.56
31.61
39.13
202.75
3.29

7
65.99
38.02
26.70
32.98
39.13
202.83
3.29

8
69.76
38.02
21.85
34.43
39.13
203.20
3.29

9
73.75
38.02
16.99
35.96
39.13
203.86
3.31

10
77.97
38.02
12.14
37.57
39.13
204.84
3.32

11
82.43
38.02
7.28
39.45
46.96
214.14
3.47

12
87.15
38.02
2.43
41.24
46.96
215.79
3.50

13
92.13
16.34
0.00
42.69
46.96
198.12
3.21

14
97.40
16.34
0.00
44.79
46.96
205.49
3.33

15
102.97
16.34
0.00
46.99
46.96
213.26
3.46

16
108.87
16.34
0.00
49.31
46.96
221.47
3.59

17
115.09
16.34
0.00
51.75
46.96
230.14
3.73

18
121.68
16.34
0.00
54.31
46.96
239.28
3.88

19
128.64
16.34
0.00
57.00
46.96
248.93
4.04

20
135.99
16.34
0.00
59.83
46.96
259.12
4.20

Levellised
6.82
1.16
0.57
0.48
0.56
0.69
10.28

1
4.88
0.95
0.77
1.13
0.44
0.79
8.97

2
5.07
0.81
0.62
0.83
0.43
0.63
8.39

3
5.32
0.86
0.62
0.75
0.45
0.63
8.63

4
5.59
0.91
0.62
0.67
0.47
0.63
8.89

5
5.87
0.96
0.62
0.59
0.49
0.63
9.16

6
6.16
1.01
0.62
0.51
0.51
0.63
9.45

7
6.47
1.07
0.62
0.43
0.53
0.63
9.76

8
6.79
1.13
0.62
0.35
0.56
0.63
10.09

9
7.13
1.20
0.62
0.28
0.58
0.63
10.44

10
7.49
1.26
0.62
0.20
0.61
0.63
10.81

11
7.86
1.34
0.62
0.12
0.64
0.76
11.34

12
8.26
1.41
0.62
0.04
0.67
0.76
11.76

13
8.67
1.49
0.26
0.00
0.69
0.76
11.88

14
9.10
1.58
0.26
0.00
0.73
0.76
12.44

15
9.56
1.67
0.26
0.00
0.76
0.76
13.02

16
10.04
1.77
0.26
0.00
0.80
0.76
13.63

17
10.54
1.87
0.26
0.00
0.84
0.76
14.27

18
11.07
1.97
0.26
0.00
0.88
0.76
14.95

19
11.62
2.09
0.26
0.00
0.92
0.76
15.66

20
12.20
2.21
0.26
0.00
0.97
0.76
16.40

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.88 Rs/Kwh
3.46 Rs/Kwh
8.34 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
652.205

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

Unit
%
Rs Lakh

1
2.64%
17.22

2
5.28%
34.44

3
5.28%
34.44

4
5.28%
34.44

5
5.28%
34.44

6
5.28%
34.44

7
5.28%
34.44

8
5.28%
34.44

9
5.28%
34.44

10
5.28%
34.44

11
5.28%
34.44

12
5.28%
34.44

13
5.28%
34.44

14
5.28%
34.44

15
5.28%
34.44

16
5.28%
34.44

17
5.28%
34.44

18
2.88%
18.78

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
326.10

50.00%
45.00%
5%
293.49

5.00%
4.00%
1.00%
26.09

1.00%
0.80%
0.20%
5.22

0.20%
0.16%
0.04%
1.04

0.04%
0.03%
0.01%
0.21

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

308.88
106.90
2.48
4.32

259.06
89.66
6.17
1.45

-8.35
-2.89
6.17
-0.05

-29.22
-10.11
6.17
-0.16

-33.39
-11.56
6.17
-0.19

-34.23
-11.85
6.17
-0.19

-34.39
-11.90
6.17
-0.19

-34.43
-11.92
6.17
-0.19

-34.43
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-18.78
-6.50
6.17
-0.11

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.22

(Rs/kWh)

131

Annexure 3.4 D
Select State

Punjab

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

652.20

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
456.54
195.66

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

456.54
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

195.66
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80 IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.61%
21.000%
Yes
5.83%
2.51%
12.00

1
15%
2
4
13.26%
4126
4126
3342.60
3174
5.00%
47.26
5.72%
40.00

132

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
247.41
4.99

2
319.73
5.18

3
335.72
5.44

4
352.51
5.72

5
370.13
6.00

6
388.64
6.30

7
408.07
6.62

8
428.48
6.95

9
449.90
7.30

10
472.39
7.66

11
496.01
8.04

12
520.81
8.45

13
546.86
8.87

14
574.20
9.31

15
602.91
9.78

16
633.05
10.27

17
664.71
10.78

18
697.94
11.32

19
732.84
11.88

20
769.48
12.48

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
38.02
55.83
22.35
39.13
202.60
4.09

2
49.97
38.02
50.98
27.29
39.13
205.39
3.33

3
52.83
38.02
46.12
28.42
39.13
204.52
3.32

4
55.85
38.02
41.27
29.61
39.13
203.88
3.31

5
59.04
38.02
36.41
30.87
39.13
203.48
3.30

6
62.42
38.02
31.56
32.20
39.13
203.33
3.30

7
65.99
38.02
26.70
33.60
39.13
203.45
3.30

8
69.76
38.02
21.85
35.08
39.13
203.84
3.31

9
73.75
38.02
16.99
36.64
39.13
204.54
3.32

10
77.97
38.02
12.14
38.28
39.13
205.55
3.33

11
82.43
38.02
7.28
40.19
46.96
214.89
3.48

12
87.15
38.02
2.43
42.02
46.96
216.58
3.51

13
92.13
16.34
0.00
43.51
46.96
198.94
3.23

14
97.40
16.34
0.00
45.65
46.96
206.35
3.35

15
102.97
16.34
0.00
47.90
46.96
214.17
3.47

16
108.87
16.34
0.00
50.26
46.96
222.42
3.61

17
115.09
16.34
0.00
52.75
46.96
231.13
3.75

18
121.68
16.34
0.00
55.36
46.96
240.33
3.90

19
128.64
16.34
0.00
58.10
46.96
250.03
4.05

20
135.99
16.34
0.00
60.98
46.96
260.27
4.22

Levellised
6.97
1.16
0.57
0.48
0.57
0.69
10.44

1
4.99
0.95
0.77
1.13
0.45
0.79
9.08

2
5.18
0.81
0.62
0.83
0.44
0.63
8.52

3
5.44
0.86
0.62
0.75
0.46
0.63
8.76

4
5.72
0.91
0.62
0.67
0.48
0.63
9.02

5
6.00
0.96
0.62
0.59
0.50
0.63
9.30

6
6.30
1.01
0.62
0.51
0.52
0.63
9.60

7
6.62
1.07
0.62
0.43
0.54
0.63
9.92

8
6.95
1.13
0.62
0.35
0.57
0.63
10.25

9
7.30
1.20
0.62
0.28
0.59
0.63
10.61

10
7.66
1.26
0.62
0.20
0.62
0.63
10.99

11
8.04
1.34
0.62
0.12
0.65
0.76
11.53

12
8.45
1.41
0.62
0.04
0.68
0.76
11.96

13
8.87
1.49
0.26
0.00
0.71
0.76
12.09

14
9.31
1.58
0.26
0.00
0.74
0.76
12.66

15
9.78
1.67
0.26
0.00
0.78
0.76
13.25

16
10.27
1.77
0.26
0.00
0.82
0.76
13.87

17
10.78
1.87
0.26
0.00
0.86
0.76
14.53

18
11.32
1.97
0.26
0.00
0.90
0.76
15.21

19
11.88
2.09
0.26
0.00
0.94
0.76
15.94

20
12.48
2.21
0.26
0.00
0.99
0.76
16.70

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.99 Rs/Kwh
3.47 Rs/Kwh
8.47 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
652.205

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

Unit
%
Rs Lakh

1
2.64%
17.22

2
5.28%
34.44

3
5.28%
34.44

4
5.28%
34.44

5
5.28%
34.44

6
5.28%
34.44

7
5.28%
34.44

8
5.28%
34.44

9
5.28%
34.44

10
5.28%
34.44

11
5.28%
34.44

12
5.28%
34.44

13
5.28%
34.44

14
5.28%
34.44

15
5.28%
34.44

16
5.28%
34.44

17
5.28%
34.44

18
2.88%
18.78

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
326.10

50.00%
45.00%
5%
293.49

5.00%
4.00%
1.00%
26.09

1.00%
0.80%
0.20%
5.22

0.20%
0.16%
0.04%
1.04

0.04%
0.03%
0.01%
0.21

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

308.88
106.90
2.48
4.32

259.06
89.66
6.17
1.45

-8.35
-2.89
6.17
-0.05

-29.22
-10.11
6.17
-0.16

-33.39
-11.56
6.17
-0.19

-34.23
-11.85
6.17
-0.19

-34.39
-11.90
6.17
-0.19

-34.43
-11.92
6.17
-0.19

-34.43
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-18.78
-6.50
6.17
-0.11

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.22

(Rs/kWh)

133

Annexure 3.4 E
Select State

Rajasthan

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

652.20

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
456.54
195.66

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

456.54
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

195.66
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
%
MAT
(for first 10 years)
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.61%
21.000%
Yes
5.83%
2.51%
12.00

1
15%
2
4
13.26%
4126
4126
2789.54
3174
5.00%
47.26
5.72%
40.00

134

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
206.48
4.17

2
266.83
4.33

3
280.17
4.54

4
294.18
4.77

5
308.89
5.01

6
324.34
5.26

7
340.55
5.52

8
357.58
5.80

9
375.46
6.09

10
394.23
6.39

11
413.94
6.71

12
434.64
7.05

13
456.37
7.40

14
479.19
7.77

15
503.15
8.16

16
528.31
8.57

17
554.73
9.00

18
582.46
9.44

19
611.59
9.92

20
642.16
10.41

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
38.02
55.83
19.57
39.13
199.83
4.03

2
49.97
38.02
50.98
23.70
39.13
201.80
3.27

3
52.83
38.02
46.12
24.65
39.13
200.76
3.26

4
55.85
38.02
41.27
25.65
39.13
199.93
3.24

5
59.04
38.02
36.41
26.71
39.13
199.33
3.23

6
62.42
38.02
31.56
27.84
39.13
198.97
3.23

7
65.99
38.02
26.70
29.02
39.13
198.87
3.22

8
69.76
38.02
21.85
30.27
39.13
199.04
3.23

9
73.75
38.02
16.99
31.59
39.13
199.49
3.23

10
77.97
38.02
12.14
32.98
39.13
200.25
3.25

11
82.43
38.02
7.28
34.63
46.96
209.32
3.39

12
87.15
38.02
2.43
36.17
46.96
210.73
3.42

13
92.13
16.34
0.00
37.37
46.96
192.80
3.13

14
97.40
16.34
0.00
39.21
46.96
199.91
3.24

15
102.97
16.34
0.00
41.13
46.96
207.41
3.36

16
108.87
16.34
0.00
43.16
46.96
215.32
3.49

17
115.09
16.34
0.00
45.29
46.96
223.68
3.63

18
121.68
16.34
0.00
47.53
46.96
232.50
3.77

19
128.64
16.34
0.00
49.88
46.96
241.81
3.92

20
135.99
16.34
0.00
52.35
46.96
251.64
4.08

Levellised
5.82
1.16
0.57
0.48
0.50
0.69
9.21

1
4.17
0.95
0.77
1.13
0.40
0.79
8.20

2
4.33
0.81
0.62
0.83
0.38
0.63
7.60

3
4.54
0.86
0.62
0.75
0.40
0.63
7.80

4
4.77
0.91
0.62
0.67
0.42
0.63
8.01

5
5.01
0.96
0.62
0.59
0.43
0.63
8.24

6
5.26
1.01
0.62
0.51
0.45
0.63
8.49

7
5.52
1.07
0.62
0.43
0.47
0.63
8.75

8
5.80
1.13
0.62
0.35
0.49
0.63
9.03

9
6.09
1.20
0.62
0.28
0.51
0.63
9.32

10
6.39
1.26
0.62
0.20
0.53
0.63
9.64

11
6.71
1.34
0.62
0.12
0.56
0.76
10.11

12
7.05
1.41
0.62
0.04
0.59
0.76
10.46

13
7.40
1.49
0.26
0.00
0.61
0.76
10.53

14
7.77
1.58
0.26
0.00
0.64
0.76
11.01

15
8.16
1.67
0.26
0.00
0.67
0.76
11.52

16
8.57
1.77
0.26
0.00
0.70
0.76
12.06

17
9.00
1.87
0.26
0.00
0.73
0.76
12.62

18
9.44
1.97
0.26
0.00
0.77
0.76
13.21

19
9.92
2.09
0.26
0.00
0.81
0.76
13.84

20
10.41
2.21
0.26
0.00
0.85
0.76
14.49

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.17 Rs/Kwh
3.39 Rs/Kwh
7.56 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
652.205

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

Unit
%
Rs Lakh

1
2.64%
17.22

2
5.28%
34.44

3
5.28%
34.44

4
5.28%
34.44

5
5.28%
34.44

6
5.28%
34.44

7
5.28%
34.44

8
5.28%
34.44

9
5.28%
34.44

10
5.28%
34.44

11
5.28%
34.44

12
5.28%
34.44

13
5.28%
34.44

14
5.28%
34.44

15
5.28%
34.44

16
5.28%
34.44

17
5.28%
34.44

18
2.88%
18.78

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
326.10

50.00%
45.00%
5%
293.49

5.00%
4.00%
1.00%
26.09

1.00%
0.80%
0.20%
5.22

0.20%
0.16%
0.04%
1.04

0.04%
0.03%
0.01%
0.21

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

308.88
106.90
2.48
4.32

259.06
89.66
6.17
1.45

-8.35
-2.89
6.17
-0.05

-29.22
-10.11
6.17
-0.16

-33.39
-11.56
6.17
-0.19

-34.23
-11.85
6.17
-0.19

-34.39
-11.90
6.17
-0.19

-34.43
-11.92
6.17
-0.19

-34.43
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-18.78
-6.50
6.17
-0.11

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.22

(Rs/kWh)

135

Annexure 3.4 F
Select State

TN

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

652.20

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
456.54
195.66

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

456.54
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

195.66
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
%
MAT
(for first 10 years)
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.61%
21.000%
Yes
5.83%
2.51%
12.00

1
15%
2
4
13.26%
4126
4126
2761.64
3174
5.00%
47.26
5.72%
40.00

136

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
204.41
4.13

2
264.16
4.28

3
277.37
4.50

4
291.24
4.72

5
305.80
4.96

6
321.09
5.21

7
337.15
5.47

8
354.00
5.74

9
371.70
6.03

10
390.29
6.33

11
409.80
6.65

12
430.29
6.98

13
451.81
7.33

14
474.40
7.69

15
498.12
8.08

16
523.03
8.48

17
549.18
8.91

18
576.64
9.35

19
605.47
9.82

20
635.74
10.31

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
38.02
55.83
19.43
39.13
199.69
4.03

2
49.97
38.02
50.98
23.52
39.13
201.62
3.27

3
52.83
38.02
46.12
24.46
39.13
200.57
3.25

4
55.85
38.02
41.27
25.45
39.13
199.73
3.24

5
59.04
38.02
36.41
26.51
39.13
199.12
3.23

6
62.42
38.02
31.56
27.62
39.13
198.75
3.22

7
65.99
38.02
26.70
28.79
39.13
198.64
3.22

8
69.76
38.02
21.85
30.03
39.13
198.79
3.22

9
73.75
38.02
16.99
31.33
39.13
199.24
3.23

10
77.97
38.02
12.14
32.71
39.13
199.98
3.24

11
82.43
38.02
7.28
34.34
46.96
209.04
3.39

12
87.15
38.02
2.43
35.88
46.96
210.44
3.41

13
92.13
16.34
0.00
37.06
46.96
192.49
3.12

14
97.40
16.34
0.00
38.88
46.96
199.58
3.24

15
102.97
16.34
0.00
40.79
46.96
207.06
3.36

16
108.87
16.34
0.00
42.80
46.96
214.96
3.49

17
115.09
16.34
0.00
44.91
46.96
223.30
3.62

18
121.68
16.34
0.00
47.13
46.96
232.10
3.76

19
128.64
16.34
0.00
49.46
46.96
241.40
3.91

20
135.99
16.34
0.00
51.92
46.96
251.21
4.07

Levellised
5.76
1.16
0.57
0.48
0.49
0.69
9.15

1
4.13
0.95
0.77
1.13
0.39
0.79
8.16

2
4.28
0.81
0.62
0.83
0.38
0.63
7.55

3
4.50
0.86
0.62
0.75
0.40
0.63
7.75

4
4.72
0.91
0.62
0.67
0.41
0.63
7.96

5
4.96
0.96
0.62
0.59
0.43
0.63
8.19

6
5.21
1.01
0.62
0.51
0.45
0.63
8.43

7
5.47
1.07
0.62
0.43
0.47
0.63
8.69

8
5.74
1.13
0.62
0.35
0.49
0.63
8.96

9
6.03
1.20
0.62
0.28
0.51
0.63
9.26

10
6.33
1.26
0.62
0.20
0.53
0.63
9.57

11
6.65
1.34
0.62
0.12
0.56
0.76
10.03

12
6.98
1.41
0.62
0.04
0.58
0.76
10.39

13
7.33
1.49
0.26
0.00
0.60
0.76
10.45

14
7.69
1.58
0.26
0.00
0.63
0.76
10.93

15
8.08
1.67
0.26
0.00
0.66
0.76
11.43

16
8.48
1.77
0.26
0.00
0.69
0.76
11.97

17
8.91
1.87
0.26
0.00
0.73
0.76
12.53

18
9.35
1.97
0.26
0.00
0.76
0.76
13.11

19
9.82
2.09
0.26
0.00
0.80
0.76
13.73

20
10.31
2.21
0.26
0.00
0.84
0.76
14.38

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.13 Rs/Kwh
3.39 Rs/Kwh
7.52 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
652.205

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

Unit
%
Rs Lakh

1
2.64%
17.22

2
5.28%
34.44

3
5.28%
34.44

4
5.28%
34.44

5
5.28%
34.44

6
5.28%
34.44

7
5.28%
34.44

8
5.28%
34.44

9
5.28%
34.44

10
5.28%
34.44

11
5.28%
34.44

12
5.28%
34.44

13
5.28%
34.44

14
5.28%
34.44

15
5.28%
34.44

16
5.28%
34.44

17
5.28%
34.44

18
2.88%
18.78

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
326.10

50.00%
45.00%
5%
293.49

5.00%
4.00%
1.00%
26.09

1.00%
0.80%
0.20%
5.22

0.20%
0.16%
0.04%
1.04

0.04%
0.03%
0.01%
0.21

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

308.88
106.90
2.48
4.32

259.06
89.66
6.17
1.45

-8.35
-2.89
6.17
-0.05

-29.22
-10.11
6.17
-0.16

-33.39
-11.56
6.17
-0.19

-34.23
-11.85
6.17
-0.19

-34.39
-11.90
6.17
-0.19

-34.43
-11.92
6.17
-0.19

-34.43
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-18.78
-6.50
6.17
-0.11

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.22

(Rs/kWh)

137

Annexure 3.4 G
Select State

UP

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

652.20

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
456.54
195.66

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

456.54
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

195.66
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.61%
21.000%
Yes
5.83%
2.51%
12.00

1
15%
2
4
13.26%
4126
4126
2856.25
3174
5.00%
47.26
5.72%
40.00

138

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
211.41
4.27

2
273.21
4.43

3
286.87
4.65

4
301.22
4.88

5
316.28
5.13

6
332.09
5.38

7
348.70
5.65

8
366.13
5.94

9
384.44
6.23

10
403.66
6.55

11
423.84
6.87

12
445.04
7.22

13
467.29
7.58

14
490.65
7.96

15
515.18
8.35

16
540.94
8.77

17
567.99
9.21

18
596.39
9.67

19
626.21
10.15

20
657.52
10.66

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
38.02
55.83
19.91
39.13
200.16
4.04

2
49.97
38.02
50.98
24.13
39.13
202.24
3.28

3
52.83
38.02
46.12
25.10
39.13
201.21
3.26

4
55.85
38.02
41.27
26.13
39.13
200.40
3.25

5
59.04
38.02
36.41
27.22
39.13
199.83
3.24

6
62.42
38.02
31.56
28.36
39.13
199.50
3.23

7
65.99
38.02
26.70
29.57
39.13
199.42
3.23

8
69.76
38.02
21.85
30.85
39.13
199.62
3.24

9
73.75
38.02
16.99
32.20
39.13
200.10
3.24

10
77.97
38.02
12.14
33.62
39.13
200.89
3.26

11
82.43
38.02
7.28
35.30
46.96
210.00
3.41

12
87.15
38.02
2.43
36.88
46.96
211.44
3.43

13
92.13
16.34
0.00
38.11
46.96
193.54
3.14

14
97.40
16.34
0.00
39.98
46.96
200.68
3.25

15
102.97
16.34
0.00
41.95
46.96
208.22
3.38

16
108.87
16.34
0.00
44.02
46.96
216.18
3.51

17
115.09
16.34
0.00
46.19
46.96
224.58
3.64

18
121.68
16.34
0.00
48.47
46.96
233.44
3.79

19
128.64
16.34
0.00
50.87
46.96
242.80
3.94

20
135.99
16.34
0.00
53.39
46.96
252.68
4.10

Levellised
5.96
1.16
0.57
0.48
0.51
0.69
9.36

1
4.27
0.95
0.77
1.13
0.40
0.79
8.31

2
4.43
0.81
0.62
0.83
0.39
0.63
7.71

3
4.65
0.86
0.62
0.75
0.41
0.63
7.91

4
4.88
0.91
0.62
0.67
0.42
0.63
8.13

5
5.13
0.96
0.62
0.59
0.44
0.63
8.37

6
5.38
1.01
0.62
0.51
0.46
0.63
8.62

7
5.65
1.07
0.62
0.43
0.48
0.63
8.89

8
5.94
1.13
0.62
0.35
0.50
0.63
9.17

9
6.23
1.20
0.62
0.28
0.52
0.63
9.48

10
6.55
1.26
0.62
0.20
0.55
0.63
9.80

11
6.87
1.34
0.62
0.12
0.57
0.76
10.28

12
7.22
1.41
0.62
0.04
0.60
0.76
10.64

13
7.58
1.49
0.26
0.00
0.62
0.76
10.72

14
7.96
1.58
0.26
0.00
0.65
0.76
11.21

15
8.35
1.67
0.26
0.00
0.68
0.76
11.73

16
8.77
1.77
0.26
0.00
0.71
0.76
12.28

17
9.21
1.87
0.26
0.00
0.75
0.76
12.85

18
9.67
1.97
0.26
0.00
0.79
0.76
13.46

19
10.15
2.09
0.26
0.00
0.82
0.76
14.09

20
10.66
2.21
0.26
0.00
0.87
0.76
14.76

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.27 Rs/Kwh
3.40 Rs/Kwh
7.67 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
652.205

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

Unit
%
Rs Lakh

1
2.64%
17.22

2
5.28%
34.44

3
5.28%
34.44

4
5.28%
34.44

5
5.28%
34.44

6
5.28%
34.44

7
5.28%
34.44

8
5.28%
34.44

9
5.28%
34.44

10
5.28%
34.44

11
5.28%
34.44

12
5.28%
34.44

13
5.28%
34.44

14
5.28%
34.44

15
5.28%
34.44

16
5.28%
34.44

17
5.28%
34.44

18
2.88%
18.78

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
326.10

50.00%
45.00%
5%
293.49

5.00%
4.00%
1.00%
26.09

1.00%
0.80%
0.20%
5.22

0.20%
0.16%
0.04%
1.04

0.04%
0.03%
0.01%
0.21

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

308.88
106.90
2.48
4.32

259.06
89.66
6.17
1.45

-8.35
-2.89
6.17
-0.05

-29.22
-10.11
6.17
-0.16

-33.39
-11.56
6.17
-0.19

-34.23
-11.85
6.17
-0.19

-34.39
-11.90
6.17
-0.19

-34.43
-11.92
6.17
-0.19

-34.43
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-18.78
-6.50
6.17
-0.11

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.22

(Rs/kWh)

139

Annexure 3.4 H
Select State

Others

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

652.20

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
456.54
195.66

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

456.54
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

195.66
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
%
MAT
(for first 10 years)
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.61%
21.000%
Yes
5.83%
2.51%
12.00

1
15%
2
4
13.26%
4126
4126
3003.01
3174
5.00%
47.26
5.72%
40.00

140

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
222.28
4.49

2
287.25
4.66

3
301.61
4.89

4
316.70
5.14

5
332.53
5.39

6
349.16
5.66

7
366.61
5.94

8
384.94
6.24

9
404.19
6.55

10
424.40
6.88

11
445.62
7.23

12
467.90
7.59

13
491.30
7.97

14
515.86
8.36

15
541.66
8.78

16
568.74
9.22

17
597.18
9.68

18
627.03
10.17

19
658.39
10.68

20
691.31
11.21

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
38.02
55.83
20.64
39.13
200.90
4.06

2
49.97
38.02
50.98
25.08
39.13
203.19
3.29

3
52.83
38.02
46.12
26.10
39.13
202.21
3.28

4
55.85
38.02
41.27
27.18
39.13
201.45
3.27

5
59.04
38.02
36.41
28.32
39.13
200.93
3.26

6
62.42
38.02
31.56
29.52
39.13
200.65
3.25

7
65.99
38.02
26.70
30.79
39.13
200.64
3.25

8
69.76
38.02
21.85
32.12
39.13
200.89
3.26

9
73.75
38.02
16.99
33.54
39.13
201.44
3.27

10
77.97
38.02
12.14
35.03
39.13
202.29
3.28

11
82.43
38.02
7.28
36.77
46.96
211.47
3.43

12
87.15
38.02
2.43
38.43
46.96
212.99
3.45

13
92.13
16.34
0.00
39.74
46.96
195.17
3.16

14
97.40
16.34
0.00
41.69
46.96
202.39
3.28

15
102.97
16.34
0.00
43.74
46.96
210.02
3.41

16
108.87
16.34
0.00
45.90
46.96
218.06
3.54

17
115.09
16.34
0.00
48.17
46.96
226.56
3.67

18
121.68
16.34
0.00
50.55
46.96
235.52
3.82

19
128.64
16.34
0.00
53.05
46.96
244.98
3.97

20
135.99
16.34
0.00
55.68
46.96
254.97
4.13

Levellised
6.26
1.16
0.57
0.48
0.53
0.69
9.69

1
4.49
0.95
0.77
1.13
0.42
0.79
8.54

2
4.66
0.81
0.62
0.83
0.41
0.63
7.95

3
4.89
0.86
0.62
0.75
0.42
0.63
8.17

4
5.14
0.91
0.62
0.67
0.44
0.63
8.40

5
5.39
0.96
0.62
0.59
0.46
0.63
8.65

6
5.66
1.01
0.62
0.51
0.48
0.63
8.92

7
5.94
1.07
0.62
0.43
0.50
0.63
9.20

8
6.24
1.13
0.62
0.35
0.52
0.63
9.50

9
6.55
1.20
0.62
0.28
0.54
0.63
9.82

10
6.88
1.26
0.62
0.20
0.57
0.63
10.16

11
7.23
1.34
0.62
0.12
0.60
0.76
10.65

12
7.59
1.41
0.62
0.04
0.62
0.76
11.04

13
7.97
1.49
0.26
0.00
0.64
0.76
11.13

14
8.36
1.58
0.26
0.00
0.68
0.76
11.65

15
8.78
1.67
0.26
0.00
0.71
0.76
12.19

16
9.22
1.77
0.26
0.00
0.74
0.76
12.76

17
9.68
1.87
0.26
0.00
0.78
0.76
13.36

18
10.17
1.97
0.26
0.00
0.82
0.76
13.99

19
10.68
2.09
0.26
0.00
0.86
0.76
14.65

20
11.21
2.21
0.26
0.00
0.90
0.76
15.34

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.49 Rs/Kwh
3.42 Rs/Kwh
7.91 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
652.205

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

Unit
%
Rs Lakh

1
2.64%
17.22

2
5.28%
34.44

3
5.28%
34.44

4
5.28%
34.44

5
5.28%
34.44

6
5.28%
34.44

7
5.28%
34.44

8
5.28%
34.44

9
5.28%
34.44

10
5.28%
34.44

11
5.28%
34.44

12
5.28%
34.44

13
5.28%
34.44

14
5.28%
34.44

15
5.28%
34.44

16
5.28%
34.44

17
5.28%
34.44

18
2.88%
18.78

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
326.10

50.00%
45.00%
5%
293.49

5.00%
4.00%
1.00%
26.09

1.00%
0.80%
0.20%
5.22

0.20%
0.16%
0.04%
1.04

0.04%
0.03%
0.01%
0.21

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

308.88
106.90
2.48
4.32

259.06
89.66
6.17
1.45

-8.35
-2.89
6.17
-0.05

-29.22
-10.11
6.17
-0.16

-33.39
-11.56
6.17
-0.19

-34.23
-11.85
6.17
-0.19

-34.39
-11.90
6.17
-0.19

-34.43
-11.92
6.17
-0.19

-34.43
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-34.44
-11.92
6.17
-0.19

-18.78
-6.50
6.17
-0.11

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.22

(Rs/kWh)

141

Annexure 3.5 A
Biomass Power Projects [other than Rice Straw and Juliflora (plantation) based project] with Water Cooled
Condenser and AFBC boiler
Select State

AP

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

559.03

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
391.32
167.71

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

391.32
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

167.71
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
%
MAT
(for first 10 years)
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)
Rs Lacs

22.00%
10.64%

34.61%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
2807.74
3174
5.00%
47.26
5.72%
40.00

142

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
204.65
4.04

2
264.47
4.19

3
277.70
4.40

4
291.58
4.62

5
306.16
4.85

6
321.47
5.10

7
337.54
5.35

8
354.42
5.62

9
372.14
5.90

10
390.75
6.20

11
410.28
6.50

12
430.80
6.83

13
452.34
7.17

14
474.95
7.53

15
498.70
7.91

16
523.64
8.30

17
549.82
8.72

18
577.31
9.15

19
606.18
9.61

20
636.48
10.09

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
32.59
47.86
19.02
33.54
180.27
3.56

2
49.97
32.59
43.70
23.13
33.54
182.92
2.90

3
52.83
32.59
39.54
24.08
33.54
182.58
2.89

4
55.85
32.59
35.37
25.10
33.54
182.45
2.89

5
59.04
32.59
31.21
26.16
33.54
182.55
2.89

6
62.42
32.59
27.05
27.29
33.54
182.89
2.90

7
65.99
32.59
22.89
28.48
33.54
183.49
2.91

8
69.76
32.59
18.73
29.73
33.54
184.36
2.92

9
73.75
32.59
14.57
31.06
33.54
185.51
2.94

10
77.97
32.59
10.40
32.45
33.54
186.97
2.96

11
82.43
32.59
6.24
34.08
40.25
195.60
3.10

12
87.15
32.59
2.08
35.63
40.25
197.70
3.13

13
92.13
14.00
0.00
36.90
40.25
183.28
2.91

14
97.40
14.00
0.00
38.72
40.25
190.37
3.02

15
102.97
14.00
0.00
40.63
40.25
197.86
3.14

16
108.87
14.00
0.00
42.64
40.25
205.76
3.26

17
115.09
14.00
0.00
44.75
40.25
214.10
3.39

18
121.68
14.00
0.00
46.97
40.25
222.90
3.53

19
128.64
14.00
0.00
49.31
40.25
232.20
3.68

20
135.99
14.00
0.00
51.76
40.25
242.01
3.84

Levellised
5.64
1.14
0.47
0.40
0.48
0.57
8.70

1
4.04
0.93
0.64
0.94
0.38
0.66
7.60

2
4.19
0.79
0.52
0.69
0.37
0.53
7.09

3
4.40
0.84
0.52
0.63
0.38
0.53
7.30

4
4.62
0.89
0.52
0.56
0.40
0.53
7.52

5
4.85
0.94
0.52
0.49
0.41
0.53
7.75

6
5.10
0.99
0.52
0.43
0.43
0.53
8.00

7
5.35
1.05
0.52
0.36
0.45
0.53
8.26

8
5.62
1.11
0.52
0.30
0.47
0.53
8.54

9
5.90
1.17
0.52
0.23
0.49
0.53
8.84

10
6.20
1.24
0.52
0.16
0.51
0.53
9.16

11
6.50
1.31
0.52
0.10
0.54
0.64
9.61

12
6.83
1.38
0.52
0.03
0.56
0.64
9.96

13
7.17
1.46
0.22
0.00
0.58
0.64
10.08

14
7.53
1.54
0.22
0.00
0.61
0.64
10.55

15
7.91
1.63
0.22
0.00
0.64
0.64
11.04

16
8.30
1.73
0.22
0.00
0.68
0.64
11.56

17
8.72
1.82
0.22
0.00
0.71
0.64
12.11

18
9.15
1.93
0.22
0.00
0.74
0.64
12.69

19
9.61
2.04
0.22
0.00
0.78
0.64
13.29

20
10.09
2.16
0.22
0.00
0.82
0.64
13.93

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.04 Rs/Kwh
3.07 Rs/Kwh
7.10 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
559.033

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

Unit
%
Rs Lakh

1
2.64%
14.76

2
5.28%
29.52

3
5.28%
29.52

4
5.28%
29.52

5
5.28%
29.52

6
5.28%
29.52

7
5.28%
29.52

8
5.28%
29.52

9
5.28%
29.52

10
5.28%
29.52

11
5.28%
29.52

12
5.28%
29.52

13
5.28%
29.52

14
5.28%
29.52

15
5.28%
29.52

16
5.28%
29.52

17
5.28%
29.52

18
2.88%
16.10

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
279.52

50.00%
45.00%
5%
251.56

5.00%
4.00%
1.00%
22.36

1.00%
0.80%
0.20%
4.47

0.20%
0.16%
0.04%
0.89

0.04%
0.03%
0.01%
0.18

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

264.76
91.63
2.53
3.62

222.05
76.85
6.31
1.22

-7.16
-2.48
6.31
-0.04

-25.04
-8.67
6.31
-0.14

-28.62
-9.91
6.31
-0.16

-29.34
-10.15
6.31
-0.16

-29.48
-10.20
6.31
-0.16

-29.51
-10.21
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-16.10
-5.57
6.31
-0.09

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

0.63

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

0.18

(Rs/kWh)

143

Annexure 3.5 B

Select State

Harayana

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

559.03

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
391.32
167.71

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

391.32
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

167.71
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
%
MAT
(for first 10 years)
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)
Rs Lacs

22.00%
10.64%

34.61%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
3195.86
3174
5.00%
47.26
5.72%
40.00

144

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
232.94
4.60

2
301.03
4.77

3
316.08
5.01

4
331.89
5.26

5
348.48
5.53

6
365.90
5.80

7
384.20
6.09

8
403.41
6.40

9
423.58
6.72

10
444.76
7.05

11
467.00
7.40

12
490.35
7.77

13
514.86
8.16

14
540.61
8.57

15
567.64
9.00

16
596.02
9.45

17
625.82
9.92

18
657.11
10.42

19
689.97
10.94

20
724.47
11.49

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
32.59
47.86
20.94
33.54
182.19
3.60

2
49.97
32.59
43.70
25.60
33.54
185.40
2.94

3
52.83
32.59
39.54
26.69
33.54
185.18
2.94

4
55.85
32.59
35.37
27.83
33.54
185.18
2.94

5
59.04
32.59
31.21
29.03
33.54
185.42
2.94

6
62.42
32.59
27.05
30.30
33.54
185.91
2.95

7
65.99
32.59
22.89
31.64
33.54
186.66
2.96

8
69.76
32.59
18.73
33.06
33.54
187.68
2.98

9
73.75
32.59
14.57
34.55
33.54
189.00
3.00

10
77.97
32.59
10.40
36.12
33.54
190.63
3.02

11
82.43
32.59
6.24
37.92
40.25
199.44
3.16

12
87.15
32.59
2.08
39.67
40.25
201.74
3.20

13
92.13
14.00
0.00
41.14
40.25
187.52
2.97

14
97.40
14.00
0.00
43.17
40.25
194.82
3.09

15
102.97
14.00
0.00
45.30
40.25
202.53
3.21

16
108.87
14.00
0.00
47.55
40.25
210.67
3.34

17
115.09
14.00
0.00
49.90
40.25
219.25
3.48

18
121.68
14.00
0.00
52.38
40.25
228.31
3.62

19
128.64
14.00
0.00
54.99
40.25
237.88
3.77

20
135.99
14.00
0.00
57.73
40.25
247.97
3.93

Levellised
6.42
1.14
0.47
0.40
0.53
0.57
9.54

1
4.60
0.93
0.64
0.94
0.41
0.66
8.19

2
4.77
0.79
0.52
0.69
0.41
0.53
7.71

3
5.01
0.84
0.52
0.63
0.42
0.53
7.95

4
5.26
0.89
0.52
0.56
0.44
0.53
8.20

5
5.53
0.94
0.52
0.49
0.46
0.53
8.46

6
5.80
0.99
0.52
0.43
0.48
0.53
8.75

7
6.09
1.05
0.52
0.36
0.50
0.53
9.05

8
6.40
1.11
0.52
0.30
0.52
0.53
9.37

9
6.72
1.17
0.52
0.23
0.55
0.53
9.71

10
7.05
1.24
0.52
0.16
0.57
0.53
10.07

11
7.40
1.31
0.52
0.10
0.60
0.64
10.57

12
7.77
1.38
0.52
0.03
0.63
0.64
10.97

13
8.16
1.46
0.22
0.00
0.65
0.64
11.14

14
8.57
1.54
0.22
0.00
0.68
0.64
11.66

15
9.00
1.63
0.22
0.00
0.72
0.64
12.21

16
9.45
1.73
0.22
0.00
0.75
0.64
12.79

17
9.92
1.82
0.22
0.00
0.79
0.64
13.40

18
10.42
1.93
0.22
0.00
0.83
0.64
14.04

19
10.94
2.04
0.22
0.00
0.87
0.64
14.71

20
11.49
2.16
0.22
0.00
0.92
0.64
15.42

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.60 Rs/Kwh
3.12 Rs/Kwh
7.72 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
559.033

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

Unit
%
Rs Lakh

1
2.64%
14.76

2
5.28%
29.52

3
5.28%
29.52

4
5.28%
29.52

5
5.28%
29.52

6
5.28%
29.52

7
5.28%
29.52

8
5.28%
29.52

9
5.28%
29.52

10
5.28%
29.52

11
5.28%
29.52

12
5.28%
29.52

13
5.28%
29.52

14
5.28%
29.52

15
5.28%
29.52

16
5.28%
29.52

17
5.28%
29.52

18
2.88%
16.10

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
279.52

50.00%
45.00%
5%
251.56

5.00%
4.00%
1.00%
22.36

1.00%
0.80%
0.20%
4.47

0.20%
0.16%
0.04%
0.89

0.04%
0.03%
0.01%
0.18

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

264.76
91.63
2.53
3.62

222.05
76.85
6.31
1.22

-7.16
-2.48
6.31
-0.04

-25.04
-8.67
6.31
-0.14

-28.62
-9.91
6.31
-0.16

-29.34
-10.15
6.31
-0.16

-29.48
-10.20
6.31
-0.16

-29.51
-10.21
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-16.10
-5.57
6.31
-0.09

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

0.63

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

0.18

(Rs/kWh)

145

Annexure 3.5 C
Select State

Maharashtra

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

559.03

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
391.32
167.71

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

391.32
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

167.71
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80 IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)
Rs Lacs

22.00%
10.64%

34.61%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
3268.62
3174
5.00%
47.26
5.72%
40.00

146

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
238.24
4.70

2
307.88
4.88

3
323.28
5.13

4
339.44
5.38

5
356.41
5.65

6
374.24
5.93

7
392.95
6.23

8
412.59
6.54

9
433.22
6.87

10
454.89
7.21

11
477.63
7.57

12
501.51
7.95

13
526.59
8.35

14
552.92
8.77

15
580.56
9.20

16
609.59
9.66

17
640.07
10.15

18
672.07
10.66

19
705.68
11.19

20
740.96
11.75

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
32.59
47.86
21.29
33.54
182.55
3.60

2
49.97
32.59
43.70
26.07
33.54
185.87
2.95

3
52.83
32.59
39.54
27.17
33.54
185.67
2.94

4
55.85
32.59
35.37
28.34
33.54
185.70
2.94

5
59.04
32.59
31.21
29.57
33.54
185.96
2.95

6
62.42
32.59
27.05
30.87
33.54
186.47
2.96

7
65.99
32.59
22.89
32.24
33.54
187.25
2.97

8
69.76
32.59
18.73
33.68
33.54
188.30
2.99

9
73.75
32.59
14.57
35.20
33.54
189.65
3.01

10
77.97
32.59
10.40
36.80
33.54
191.31
3.03

11
82.43
32.59
6.24
38.65
40.25
200.16
3.17

12
87.15
32.59
2.08
40.43
40.25
202.50
3.21

13
92.13
14.00
0.00
41.93
40.25
188.32
2.99

14
97.40
14.00
0.00
44.00
40.25
195.66
3.10

15
102.97
14.00
0.00
46.18
40.25
203.41
3.23

16
108.87
14.00
0.00
48.47
40.25
211.59
3.35

17
115.09
14.00
0.00
50.87
40.25
220.22
3.49

18
121.68
14.00
0.00
53.40
40.25
229.33
3.64

19
128.64
14.00
0.00
56.05
40.25
238.94
3.79

20
135.99
14.00
0.00
58.85
40.25
249.09
3.95

Levellised
6.56
1.14
0.47
0.40
0.54
0.57
9.69

1
4.70
0.93
0.64
0.94
0.42
0.66
8.30

2
4.88
0.79
0.52
0.69
0.41
0.53
7.83

3
5.13
0.84
0.52
0.63
0.43
0.53
8.07

4
5.38
0.89
0.52
0.56
0.45
0.53
8.33

5
5.65
0.94
0.52
0.49
0.47
0.53
8.60

6
5.93
0.99
0.52
0.43
0.49
0.53
8.89

7
6.23
1.05
0.52
0.36
0.51
0.53
9.20

8
6.54
1.11
0.52
0.30
0.53
0.53
9.53

9
6.87
1.17
0.52
0.23
0.56
0.53
9.88

10
7.21
1.24
0.52
0.16
0.58
0.53
10.25

11
7.57
1.31
0.52
0.10
0.61
0.64
10.75

12
7.95
1.38
0.52
0.03
0.64
0.64
11.16

13
8.35
1.46
0.22
0.00
0.66
0.64
11.33

14
8.77
1.54
0.22
0.00
0.70
0.64
11.87

15
9.20
1.63
0.22
0.00
0.73
0.64
12.43

16
9.66
1.73
0.22
0.00
0.77
0.64
13.02

17
10.15
1.82
0.22
0.00
0.81
0.64
13.64

18
10.66
1.93
0.22
0.00
0.85
0.64
14.29

19
11.19
2.04
0.22
0.00
0.89
0.64
14.98

20
11.75
2.16
0.22
0.00
0.93
0.64
15.70

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.70 Rs/Kwh
3.13 Rs/Kwh
7.83 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
559.033

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

Unit
%
Rs Lakh

1
2.64%
14.76

2
5.28%
29.52

3
5.28%
29.52

4
5.28%
29.52

5
5.28%
29.52

6
5.28%
29.52

7
5.28%
29.52

8
5.28%
29.52

9
5.28%
29.52

10
5.28%
29.52

11
5.28%
29.52

12
5.28%
29.52

13
5.28%
29.52

14
5.28%
29.52

15
5.28%
29.52

16
5.28%
29.52

17
5.28%
29.52

18
2.88%
16.10

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
279.52

50.00%
45.00%
5%
251.56

5.00%
4.00%
1.00%
22.36

1.00%
0.80%
0.20%
4.47

0.20%
0.16%
0.04%
0.89

0.04%
0.03%
0.01%
0.18

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

264.76
91.63
2.53
3.62

222.05
76.85
6.31
1.22

-7.16
-2.48
6.31
-0.04

-25.04
-8.67
6.31
-0.14

-28.62
-9.91
6.31
-0.16

-29.34
-10.15
6.31
-0.16

-29.48
-10.20
6.31
-0.16

-29.51
-10.21
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-16.10
-5.57
6.31
-0.09

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

0.63

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

0.18

(Rs/kWh)

147

Annexure 3.5 D
Select State

Punjab

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

559.03

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
391.32
167.71

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

391.32
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

167.71
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
%
MAT
(for first 10 years)
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)
Rs Lacs

22.00%
10.64%

34.61%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
3342.60
3174
5.00%
47.26
5.72%
40.00

148

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
243.64
4.81

2
314.85
4.99

3
330.60
5.24

4
347.13
5.50

5
364.48
5.78

6
382.71
6.07

7
401.84
6.37

8
421.93
6.69

9
443.03
7.02

10
465.18
7.38

11
488.44
7.74

12
512.86
8.13

13
538.51
8.54

14
565.43
8.96

15
593.70
9.41

16
623.39
9.88

17
654.56
10.38

18
687.28
10.90

19
721.65
11.44

20
757.73
12.01

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
32.59
47.86
21.66
33.54
182.92
3.61

2
49.97
32.59
43.70
26.54
33.54
186.34
2.95

3
52.83
32.59
39.54
27.67
33.54
186.17
2.95

4
55.85
32.59
35.37
28.86
33.54
186.22
2.95

5
59.04
32.59
31.21
30.12
33.54
186.50
2.96

6
62.42
32.59
27.05
31.44
33.54
187.05
2.97

7
65.99
32.59
22.89
32.84
33.54
187.85
2.98

8
69.76
32.59
18.73
34.31
33.54
188.94
3.00

9
73.75
32.59
14.57
35.87
33.54
190.32
3.02

10
77.97
32.59
10.40
37.50
33.54
192.01
3.04

11
82.43
32.59
6.24
39.38
40.25
200.90
3.19

12
87.15
32.59
2.08
41.20
40.25
203.27
3.22

13
92.13
14.00
0.00
42.74
40.25
189.13
3.00

14
97.40
14.00
0.00
44.85
40.25
196.51
3.12

15
102.97
14.00
0.00
47.07
40.25
204.30
3.24

16
108.87
14.00
0.00
49.40
40.25
212.52
3.37

17
115.09
14.00
0.00
51.85
40.25
221.20
3.51

18
121.68
14.00
0.00
54.43
40.25
230.36
3.65

19
128.64
14.00
0.00
57.14
40.25
240.03
3.81

20
135.99
14.00
0.00
59.98
40.25
250.23
3.97

Levellised
6.71
1.14
0.47
0.40
0.55
0.57
9.85

1
4.81
0.93
0.64
0.94
0.43
0.66
8.42

2
4.99
0.79
0.52
0.69
0.42
0.53
7.95

3
5.24
0.84
0.52
0.63
0.44
0.53
8.19

4
5.50
0.89
0.52
0.56
0.46
0.53
8.46

5
5.78
0.94
0.52
0.49
0.48
0.53
8.74

6
6.07
0.99
0.52
0.43
0.50
0.53
9.03

7
6.37
1.05
0.52
0.36
0.52
0.53
9.35

8
6.69
1.11
0.52
0.30
0.54
0.53
9.69

9
7.02
1.17
0.52
0.23
0.57
0.53
10.04

10
7.38
1.24
0.52
0.16
0.59
0.53
10.42

11
7.74
1.31
0.52
0.10
0.62
0.64
10.93

12
8.13
1.38
0.52
0.03
0.65
0.64
11.35

13
8.54
1.46
0.22
0.00
0.68
0.64
11.54

14
8.96
1.54
0.22
0.00
0.71
0.64
12.08

15
9.41
1.63
0.22
0.00
0.75
0.64
12.65

16
9.88
1.73
0.22
0.00
0.78
0.64
13.25

17
10.38
1.82
0.22
0.00
0.82
0.64
13.89

18
10.90
1.93
0.22
0.00
0.86
0.64
14.55

19
11.44
2.04
0.22
0.00
0.91
0.64
15.25

20
12.01
2.16
0.22
0.00
0.95
0.64
15.98

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.81 Rs/Kwh
3.14 Rs/Kwh
7.95 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
559.033

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

Unit
%
Rs Lakh

1
2.64%
14.76

2
5.28%
29.52

3
5.28%
29.52

4
5.28%
29.52

5
5.28%
29.52

6
5.28%
29.52

7
5.28%
29.52

8
5.28%
29.52

9
5.28%
29.52

10
5.28%
29.52

11
5.28%
29.52

12
5.28%
29.52

13
5.28%
29.52

14
5.28%
29.52

15
5.28%
29.52

16
5.28%
29.52

17
5.28%
29.52

18
2.88%
16.10

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
279.52

50.00%
45.00%
5%
251.56

5.00%
4.00%
1.00%
22.36

1.00%
0.80%
0.20%
4.47

0.20%
0.16%
0.04%
0.89

0.04%
0.03%
0.01%
0.18

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

264.76
91.63
2.53
3.62

222.05
76.85
6.31
1.22

-7.16
-2.48
6.31
-0.04

-25.04
-8.67
6.31
-0.14

-28.62
-9.91
6.31
-0.16

-29.34
-10.15
6.31
-0.16

-29.48
-10.20
6.31
-0.16

-29.51
-10.21
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-16.10
-5.57
6.31
-0.09

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

0.63

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

0.18

(Rs/kWh)

149

Annexure 3.5 E
Select State

Rajasthan

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

559.03

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
391.32
167.71

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

391.32
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

167.71
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)
Rs Lacs

22.00%
10.64%

34.61%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
2789.54
3174
5.00%
47.26
5.72%
40.00

150

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
203.32
4.01

2
262.76
4.17

3
275.90
4.37

4
289.69
4.59

5
304.18
4.82

6
319.38
5.06

7
335.35
5.32

8
352.12
5.58

9
369.73
5.86

10
388.21
6.16

11
407.62
6.46

12
428.01
6.79

13
449.41
7.13

14
471.88
7.48

15
495.47
7.86

16
520.24
8.25

17
546.26
8.66

18
573.57
9.09

19
602.25
9.55

20
632.36
10.03

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
32.59
47.86
18.93
33.54
180.18
3.56

2
49.97
32.59
43.70
23.01
33.54
182.81
2.90

3
52.83
32.59
39.54
23.96
33.54
182.46
2.89

4
55.85
32.59
35.37
24.97
33.54
182.32
2.89

5
59.04
32.59
31.21
26.03
33.54
182.42
2.89

6
62.42
32.59
27.05
27.15
33.54
182.75
2.90

7
65.99
32.59
22.89
28.33
33.54
183.34
2.91

8
69.76
32.59
18.73
29.58
33.54
184.20
2.92

9
73.75
32.59
14.57
30.89
33.54
185.35
2.94

10
77.97
32.59
10.40
32.28
33.54
186.79
2.96

11
82.43
32.59
6.24
33.90
40.25
195.42
3.10

12
87.15
32.59
2.08
35.44
40.25
197.51
3.13

13
92.13
14.00
0.00
36.70
40.25
183.08
2.90

14
97.40
14.00
0.00
38.51
40.25
190.16
3.02

15
102.97
14.00
0.00
40.41
40.25
197.64
3.13

16
108.87
14.00
0.00
42.41
40.25
205.53
3.26

17
115.09
14.00
0.00
44.51
40.25
213.86
3.39

18
121.68
14.00
0.00
46.72
40.25
222.65
3.53

19
128.64
14.00
0.00
49.04
40.25
231.93
3.68

20
135.99
14.00
0.00
51.48
40.25
241.73
3.83

Levellised
5.60
1.14
0.47
0.40
0.47
0.57
8.67

1
4.01
0.93
0.64
0.94
0.37
0.66
7.57

2
4.17
0.79
0.52
0.69
0.36
0.53
7.06

3
4.37
0.84
0.52
0.63
0.38
0.53
7.27

4
4.59
0.89
0.52
0.56
0.40
0.53
7.48

5
4.82
0.94
0.52
0.49
0.41
0.53
7.71

6
5.06
0.99
0.52
0.43
0.43
0.53
7.96

7
5.32
1.05
0.52
0.36
0.45
0.53
8.22

8
5.58
1.11
0.52
0.30
0.47
0.53
8.50

9
5.86
1.17
0.52
0.23
0.49
0.53
8.80

10
6.16
1.24
0.52
0.16
0.51
0.53
9.12

11
6.46
1.31
0.52
0.10
0.54
0.64
9.56

12
6.79
1.38
0.52
0.03
0.56
0.64
9.92

13
7.13
1.46
0.22
0.00
0.58
0.64
10.03

14
7.48
1.54
0.22
0.00
0.61
0.64
10.50

15
7.86
1.63
0.22
0.00
0.64
0.64
10.99

16
8.25
1.73
0.22
0.00
0.67
0.64
11.51

17
8.66
1.82
0.22
0.00
0.71
0.64
12.05

18
9.09
1.93
0.22
0.00
0.74
0.64
12.62

19
9.55
2.04
0.22
0.00
0.78
0.64
13.23

20
10.03
2.16
0.22
0.00
0.82
0.64
13.86

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.01 Rs/Kwh
3.06 Rs/Kwh
7.08 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
559.033

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

Unit
%
Rs Lakh

1
2.64%
14.76

2
5.28%
29.52

3
5.28%
29.52

4
5.28%
29.52

5
5.28%
29.52

6
5.28%
29.52

7
5.28%
29.52

8
5.28%
29.52

9
5.28%
29.52

10
5.28%
29.52

11
5.28%
29.52

12
5.28%
29.52

13
5.28%
29.52

14
5.28%
29.52

15
5.28%
29.52

16
5.28%
29.52

17
5.28%
29.52

18
2.88%
16.10

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
279.52

50.00%
45.00%
5%
251.56

5.00%
4.00%
1.00%
22.36

1.00%
0.80%
0.20%
4.47

0.20%
0.16%
0.04%
0.89

0.04%
0.03%
0.01%
0.18

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

264.76
91.63
2.53
3.62

222.05
76.85
6.31
1.22

-7.16
-2.48
6.31
-0.04

-25.04
-8.67
6.31
-0.14

-28.62
-9.91
6.31
-0.16

-29.34
-10.15
6.31
-0.16

-29.48
-10.20
6.31
-0.16

-29.51
-10.21
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-16.10
-5.57
6.31
-0.09

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

0.63

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

0.18

(Rs/kWh)

151

Annexure 3.5 F
Select State

TN

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

559.03

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
391.32
167.71

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

391.32
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

167.71
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)
Rs Lacs

22.00%
10.64%

34.61%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
2761.64
3174
5.00%
47.26
5.72%
40.00

152

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
201.29
3.97

2
260.13
4.12

3
273.14
4.33

4
286.79
4.55

5
301.13
4.77

6
316.19
5.01

7
332.00
5.26

8
348.60
5.53

9
366.03
5.80

10
384.33
6.09

11
403.55
6.40

12
423.72
6.72

13
444.91
7.05

14
467.16
7.41

15
490.51
7.78

16
515.04
8.17

17
540.79
8.57

18
567.83
9.00

19
596.22
9.45

20
626.03
9.93

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
32.59
47.86
18.79
33.54
180.05
3.55

2
49.97
32.59
43.70
22.83
33.54
182.63
2.90

3
52.83
32.59
39.54
23.77
33.54
182.27
2.89

4
55.85
32.59
35.37
24.77
33.54
182.13
2.89

5
59.04
32.59
31.21
25.82
33.54
182.21
2.89

6
62.42
32.59
27.05
26.93
33.54
182.54
2.89

7
65.99
32.59
22.89
28.10
33.54
183.12
2.90

8
69.76
32.59
18.73
29.34
33.54
183.96
2.92

9
73.75
32.59
14.57
30.64
33.54
185.10
2.93

10
77.97
32.59
10.40
32.02
33.54
186.53
2.96

11
82.43
32.59
6.24
33.62
40.25
195.14
3.09

12
87.15
32.59
2.08
35.15
40.25
197.22
3.13

13
92.13
14.00
0.00
36.39
40.25
182.78
2.90

14
97.40
14.00
0.00
38.19
40.25
189.84
3.01

15
102.97
14.00
0.00
40.07
40.25
197.30
3.13

16
108.87
14.00
0.00
42.06
40.25
205.17
3.25

17
115.09
14.00
0.00
44.14
40.25
213.49
3.38

18
121.68
14.00
0.00
46.33
40.25
222.26
3.52

19
128.64
14.00
0.00
48.63
40.25
231.52
3.67

20
135.99
14.00
0.00
51.05
40.25
241.30
3.83

Levellised
5.55
1.14
0.47
0.40
0.47
0.57
8.61

1
3.97
0.93
0.64
0.94
0.37
0.66
7.52

2
4.12
0.79
0.52
0.69
0.36
0.53
7.02

3
4.33
0.84
0.52
0.63
0.38
0.53
7.22

4
4.55
0.89
0.52
0.56
0.39
0.53
7.43

5
4.77
0.94
0.52
0.49
0.41
0.53
7.66

6
5.01
0.99
0.52
0.43
0.43
0.53
7.91

7
5.26
1.05
0.52
0.36
0.45
0.53
8.17

8
5.53
1.11
0.52
0.30
0.47
0.53
8.44

9
5.80
1.17
0.52
0.23
0.49
0.53
8.74

10
6.09
1.24
0.52
0.16
0.51
0.53
9.05

11
6.40
1.31
0.52
0.10
0.53
0.64
9.49

12
6.72
1.38
0.52
0.03
0.56
0.64
9.85

13
7.05
1.46
0.22
0.00
0.58
0.64
9.95

14
7.41
1.54
0.22
0.00
0.61
0.64
10.42

15
7.78
1.63
0.22
0.00
0.64
0.64
10.91

16
8.17
1.73
0.22
0.00
0.67
0.64
11.42

17
8.57
1.82
0.22
0.00
0.70
0.64
11.96

18
9.00
1.93
0.22
0.00
0.73
0.64
12.53

19
9.45
2.04
0.22
0.00
0.77
0.64
13.12

20
9.93
2.16
0.22
0.00
0.81
0.64
13.75

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

3.97 Rs/Kwh
3.06 Rs/Kwh
7.03 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
559.033

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

Unit
%
Rs Lakh

1
2.64%
14.76

2
5.28%
29.52

3
5.28%
29.52

4
5.28%
29.52

5
5.28%
29.52

6
5.28%
29.52

7
5.28%
29.52

8
5.28%
29.52

9
5.28%
29.52

10
5.28%
29.52

11
5.28%
29.52

12
5.28%
29.52

13
5.28%
29.52

14
5.28%
29.52

15
5.28%
29.52

16
5.28%
29.52

17
5.28%
29.52

18
2.88%
16.10

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
279.52

50.00%
45.00%
5%
251.56

5.00%
4.00%
1.00%
22.36

1.00%
0.80%
0.20%
4.47

0.20%
0.16%
0.04%
0.89

0.04%
0.03%
0.01%
0.18

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

264.76
91.63
2.53
3.62

222.05
76.85
6.31
1.22

-7.16
-2.48
6.31
-0.04

-25.04
-8.67
6.31
-0.14

-28.62
-9.91
6.31
-0.16

-29.34
-10.15
6.31
-0.16

-29.48
-10.20
6.31
-0.16

-29.51
-10.21
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-16.10
-5.57
6.31
-0.09

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

0.63

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

0.18

(Rs/kWh)

153

Annexure 3.5 G
Select State

UP

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

559.03

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
391.32
167.71

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

391.32
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

167.71
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)
Rs Lacs

22.00%
10.64%

34.61%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
2856.25
3174
5.00%
47.26
5.72%
40.00

154

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
208.19
4.11

2
269.04
4.27

3
282.49
4.48

4
296.62
4.70

5
311.45
4.94

6
327.02
5.18

7
343.37
5.44

8
360.54
5.72

9
378.57
6.00

10
397.50
6.30

11
417.37
6.62

12
438.24
6.95

13
460.15
7.30

14
483.16
7.66

15
507.32
8.04

16
532.68
8.45

17
559.32
8.87

18
587.28
9.31

19
616.65
9.78

20
647.48
10.27

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
32.59
47.86
19.26
33.54
180.51
3.56

2
49.97
32.59
43.70
23.44
33.54
183.23
2.91

3
52.83
32.59
39.54
24.41
33.54
182.90
2.90

4
55.85
32.59
35.37
25.44
33.54
182.79
2.90

5
59.04
32.59
31.21
26.52
33.54
182.91
2.90

6
62.42
32.59
27.05
27.67
33.54
183.27
2.91

7
65.99
32.59
22.89
28.87
33.54
183.89
2.92

8
69.76
32.59
18.73
30.15
33.54
184.77
2.93

9
73.75
32.59
14.57
31.49
33.54
185.95
2.95

10
77.97
32.59
10.40
32.91
33.54
187.42
2.97

11
82.43
32.59
6.24
34.56
40.25
196.08
3.11

12
87.15
32.59
2.08
36.14
40.25
198.21
3.14

13
92.13
14.00
0.00
37.43
40.25
183.81
2.91

14
97.40
14.00
0.00
39.27
40.25
190.93
3.03

15
102.97
14.00
0.00
41.21
40.25
198.44
3.15

16
108.87
14.00
0.00
43.25
40.25
206.37
3.27

17
115.09
14.00
0.00
45.40
40.25
214.74
3.40

18
121.68
14.00
0.00
47.65
40.25
223.58
3.54

19
128.64
14.00
0.00
50.02
40.25
232.91
3.69

20
135.99
14.00
0.00
52.51
40.25
242.75
3.85

Levellised
5.74
1.14
0.47
0.40
0.48
0.57
8.81

1
4.11
0.93
0.64
0.94
0.38
0.66
7.67

2
4.27
0.79
0.52
0.69
0.37
0.53
7.17

3
4.48
0.84
0.52
0.63
0.39
0.53
7.38

4
4.70
0.89
0.52
0.56
0.40
0.53
7.60

5
4.94
0.94
0.52
0.49
0.42
0.53
7.84

6
5.18
0.99
0.52
0.43
0.44
0.53
8.09

7
5.44
1.05
0.52
0.36
0.46
0.53
8.36

8
5.72
1.11
0.52
0.30
0.48
0.53
8.65

9
6.00
1.17
0.52
0.23
0.50
0.53
8.95

10
6.30
1.24
0.52
0.16
0.52
0.53
9.27

11
6.62
1.31
0.52
0.10
0.55
0.64
9.73

12
6.95
1.38
0.52
0.03
0.57
0.64
10.09

13
7.30
1.46
0.22
0.00
0.59
0.64
10.21

14
7.66
1.54
0.22
0.00
0.62
0.64
10.69

15
8.04
1.63
0.22
0.00
0.65
0.64
11.19

16
8.45
1.73
0.22
0.00
0.69
0.64
11.72

17
8.87
1.82
0.22
0.00
0.72
0.64
12.27

18
9.31
1.93
0.22
0.00
0.76
0.64
12.86

19
9.78
2.04
0.22
0.00
0.79
0.64
13.47

20
10.27
2.16
0.22
0.00
0.83
0.64
14.11

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.11 Rs/Kwh
3.07 Rs/Kwh
7.18 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
559.033

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

Unit
%
Rs Lakh

1
2.64%
14.76

2
5.28%
29.52

3
5.28%
29.52

4
5.28%
29.52

5
5.28%
29.52

6
5.28%
29.52

7
5.28%
29.52

8
5.28%
29.52

9
5.28%
29.52

10
5.28%
29.52

11
5.28%
29.52

12
5.28%
29.52

13
5.28%
29.52

14
5.28%
29.52

15
5.28%
29.52

16
5.28%
29.52

17
5.28%
29.52

18
2.88%
16.10

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
279.52

50.00%
45.00%
5%
251.56

5.00%
4.00%
1.00%
22.36

1.00%
0.80%
0.20%
4.47

0.20%
0.16%
0.04%
0.89

0.04%
0.03%
0.01%
0.18

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

264.76
91.63
2.53
3.62

222.05
76.85
6.31
1.22

-7.16
-2.48
6.31
-0.04

-25.04
-8.67
6.31
-0.14

-28.62
-9.91
6.31
-0.16

-29.34
-10.15
6.31
-0.16

-29.48
-10.20
6.31
-0.16

-29.51
-10.21
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-16.10
-5.57
6.31
-0.09

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

0.63

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

0.18

(Rs/kWh)

155

Annexure 3.5 H
Select State

Others

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

559.03

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
391.32
167.71

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

391.32
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

167.71
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80 IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)
Rs Lacs

22.00%
10.64%

34.61%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
3003.01
3174
5.00%
47.26
5.72%
40.00

156

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
218.88
4.32

2
282.87
4.48

3
297.01
4.71

4
311.86
4.94

5
327.45
5.19

6
343.83
5.45

7
361.02
5.72

8
379.07
6.01

9
398.02
6.31

10
417.92
6.63

11
438.82
6.96

12
460.76
7.31

13
483.80
7.67

14
507.99
8.05

15
533.39
8.46

16
560.05
8.88

17
588.06
9.32

18
617.46
9.79

19
648.33
10.28

20
680.75
10.79

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
32.59
47.86
19.98
33.54
181.24
3.58

2
49.97
32.59
43.70
24.37
33.54
184.17
2.92

3
52.83
32.59
39.54
25.39
33.54
183.89
2.92

4
55.85
32.59
35.37
26.47
33.54
183.82
2.91

5
59.04
32.59
31.21
27.61
33.54
183.99
2.92

6
62.42
32.59
27.05
28.81
33.54
184.41
2.92

7
65.99
32.59
22.89
30.07
33.54
185.08
2.93

8
69.76
32.59
18.73
31.41
33.54
186.03
2.95

9
73.75
32.59
14.57
32.81
33.54
187.27
2.97

10
77.97
32.59
10.40
34.30
33.54
188.81
2.99

11
82.43
32.59
6.24
36.01
40.25
197.53
3.13

12
87.15
32.59
2.08
37.66
40.25
199.73
3.17

13
92.13
14.00
0.00
39.03
40.25
185.42
2.94

14
97.40
14.00
0.00
40.96
40.25
192.61
3.05

15
102.97
14.00
0.00
42.98
40.25
200.21
3.17

16
108.87
14.00
0.00
45.11
40.25
208.23
3.30

17
115.09
14.00
0.00
47.34
40.25
216.69
3.44

18
121.68
14.00
0.00
49.69
40.25
225.62
3.58

19
128.64
14.00
0.00
52.17
40.25
235.06
3.73

20
135.99
14.00
0.00
54.76
40.25
245.01
3.88

Levellised
6.03
1.14
0.47
0.40
0.50
0.57
9.12

1
4.32
0.93
0.64
0.94
0.39
0.66
7.90

2
4.48
0.79
0.52
0.69
0.39
0.53
7.40

3
4.71
0.84
0.52
0.63
0.40
0.53
7.62

4
4.94
0.89
0.52
0.56
0.42
0.53
7.86

5
5.19
0.94
0.52
0.49
0.44
0.53
8.11

6
5.45
0.99
0.52
0.43
0.46
0.53
8.38

7
5.72
1.05
0.52
0.36
0.48
0.53
8.66

8
6.01
1.11
0.52
0.30
0.50
0.53
8.96

9
6.31
1.17
0.52
0.23
0.52
0.53
9.28

10
6.63
1.24
0.52
0.16
0.54
0.53
9.62

11
6.96
1.31
0.52
0.10
0.57
0.64
10.09

12
7.31
1.38
0.52
0.03
0.60
0.64
10.47

13
7.67
1.46
0.22
0.00
0.62
0.64
10.61

14
8.05
1.54
0.22
0.00
0.65
0.64
11.11

15
8.46
1.63
0.22
0.00
0.68
0.64
11.63

16
8.88
1.73
0.22
0.00
0.72
0.64
12.18

17
9.32
1.82
0.22
0.00
0.75
0.64
12.76

18
9.79
1.93
0.22
0.00
0.79
0.64
13.37

19
10.28
2.04
0.22
0.00
0.83
0.64
14.01

20
10.79
2.16
0.22
0.00
0.87
0.64
14.68

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.32 Rs/Kwh
3.09 Rs/Kwh
7.41 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
559.033

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

Unit
%
Rs Lakh

1
2.64%
14.76

2
5.28%
29.52

3
5.28%
29.52

4
5.28%
29.52

5
5.28%
29.52

6
5.28%
29.52

7
5.28%
29.52

8
5.28%
29.52

9
5.28%
29.52

10
5.28%
29.52

11
5.28%
29.52

12
5.28%
29.52

13
5.28%
29.52

14
5.28%
29.52

15
5.28%
29.52

16
5.28%
29.52

17
5.28%
29.52

18
2.88%
16.10

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
279.52

50.00%
45.00%
5%
251.56

5.00%
4.00%
1.00%
22.36

1.00%
0.80%
0.20%
4.47

0.20%
0.16%
0.04%
0.89

0.04%
0.03%
0.01%
0.18

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

264.76
91.63
2.53
3.62

222.05
76.85
6.31
1.22

-7.16
-2.48
6.31
-0.04

-25.04
-8.67
6.31
-0.14

-28.62
-9.91
6.31
-0.16

-29.34
-10.15
6.31
-0.16

-29.48
-10.20
6.31
-0.16

-29.51
-10.21
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-29.52
-10.22
6.31
-0.16

-16.10
-5.57
6.31
-0.09

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

0.63

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

0.18

(Rs/kWh)

157

Annexure 3.6 A
Biomass Power Projects [other than Rice Straw and Juliflora (plantation) based project] with Air Cooled
Condenser and AFBC boiler
Select State

AP

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

600.44

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
420.310
180.133

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

420.310
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

180.133
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)

Rs Lacs

22.00%
10.70%

33.990%
20.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
2807.74
3174
5.00%
47.26
5.72%
40.00

158

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
204.65
4.13

2
264.47
4.29

3
277.70
4.50

4
291.58
4.73

5
306.16
4.96

6
321.47
5.21

7
337.54
5.47

8
354.42
5.75

9
372.14
6.03

10
390.75
6.34

11
410.28
6.65

12
430.80
6.99

13
452.34
7.33

14
474.95
7.70

15
498.70
8.09

16
523.64
8.49

17
549.82
8.92

18
577.31
9.36

19
606.18
9.83

20
636.48
10.32

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.01
51.40
19.21
36.03
188.91
3.81

2
49.97
35.01
46.93
23.31
36.03
191.24
3.10

3
52.83
35.01
42.46
24.26
36.03
190.58
3.09

4
55.85
35.01
37.99
25.26
36.03
190.14
3.08

5
59.04
35.01
33.52
26.33
36.03
189.92
3.08

6
62.42
35.01
29.05
27.45
36.03
189.95
3.08

7
65.99
35.01
24.58
28.63
36.03
190.23
3.08

8
69.76
35.01
20.11
29.88
36.03
190.79
3.09

9
73.75
35.01
15.64
31.19
36.03
191.63
3.11

10
77.97
35.01
11.17
32.58
36.03
192.76
3.13

11
82.43
35.01
6.70
34.21
43.23
201.59
3.27

12
87.15
35.01
2.23
35.76
43.23
203.38
3.30

13
92.13
15.04
-2.23
36.94
43.23
185.11
3.00

14
97.40
15.04
0.00
38.81
43.23
194.48
3.15

15
102.97
15.04
0.00
40.72
43.23
201.97
3.27

16
108.87
15.04
0.00
42.73
43.23
209.87
3.40

17
115.09
15.04
0.00
44.84
43.23
218.21
3.54

18
121.68
15.04
0.00
47.06
43.23
227.01
3.68

19
128.64
15.04
0.00
49.40
43.23
236.31
3.83

20
135.99
15.04
0.00
51.85
43.23
246.12
3.99

Levellised
5.76
1.16
0.52
0.44
0.49
0.63
9.01

1
4.13
0.95
0.71
1.04
0.39
0.73
7.94

2
4.29
0.81
0.57
0.76
0.38
0.58
7.39

3
4.50
0.86
0.57
0.69
0.39
0.58
7.59

4
4.73
0.91
0.57
0.62
0.41
0.58
7.81

5
4.96
0.96
0.57
0.54
0.43
0.58
8.04

6
5.21
1.01
0.57
0.47
0.45
0.58
8.29

7
5.47
1.07
0.57
0.40
0.46
0.58
8.56

8
5.75
1.13
0.57
0.33
0.48
0.58
8.84

9
6.03
1.20
0.57
0.25
0.51
0.58
9.14

10
6.34
1.26
0.57
0.18
0.53
0.58
9.46

11
6.65
1.34
0.57
0.11
0.55
0.70
9.92

12
6.99
1.41
0.57
0.04
0.58
0.70
10.28

13
7.33
1.49
0.24
-0.04
0.60
0.70
10.34

14
7.70
1.58
0.24
0.00
0.63
0.70
10.86

15
8.09
1.67
0.24
0.00
0.66
0.70
11.36

16
8.49
1.77
0.24
0.00
0.69
0.70
11.89

17
8.92
1.87
0.24
0.00
0.73
0.70
12.45

18
9.36
1.97
0.24
0.00
0.76
0.70
13.04

19
9.83
2.09
0.24
0.00
0.80
0.70
13.66

20
10.32
2.21
0.24
0.00
0.84
0.70
14.31

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.903

3
0.816

4
0.737

5
0.666

6
0.602

7
0.543

8
0.491

9
0.444

10
0.401

11
0.362

12
0.327

13
0.295

14
0.267

15
0.241

16
0.218

17
0.197

18
0.178

19
0.161

20
0.145

4.13 Rs/Kwh
3.25 Rs/Kwh
7.38 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
33.99%
600.443

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

Unit
%
Rs Lakh

1
2.64%
15.85

2
5.28%
31.70

3
5.28%
31.70

4
5.28%
31.70

5
5.28%
31.70

6
5.28%
31.70

7
5.28%
31.70

8
5.28%
31.70

9
5.28%
31.70

10
5.28%
31.70

11
5.28%
31.70

12
5.28%
31.70

13
5.28%
31.70

14
5.28%
31.70

15
5.28%
31.70

16
5.28%
31.70

17
5.28%
31.70

18
2.88%
17.29

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
300.22

50.00%
45.00%
5%
270.20

5.00%
4.00%
1.00%
24.02

1.00%
0.80%
0.20%
4.80

0.20%
0.16%
0.04%
0.96

0.04%
0.03%
0.01%
0.19

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

284.37
96.66
2.48
3.90

238.50
81.06
6.17
1.31

-7.69
-2.61
6.17
-0.04

-26.90
-9.14
6.17
-0.15

-30.74
-10.45
6.17
-0.17

-31.51
-10.71
6.17
-0.17

-31.66
-10.76
6.17
-0.17

-31.70
-10.77
6.17
-0.17

-31.70
-10.78
6.17
-0.17

-31.70
-10.78
6.17
-0.17

-31.70
-10.78
6.17
-0.17

-31.70
-10.78
6.17
-0.17

-31.70
-10.78
6.17
-0.17

-31.70
-10.78
6.17
-0.17

-31.70
-10.78
6.17
-0.17

-31.70
-10.78
6.17
-0.17

-31.70
-10.78
6.17
-0.17

-17.29
-5.88
6.17
-0.10

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

0.57

0.52

0.47

0.42

0.38

0.34

0.31

0.28

0.25

0.23

0.21

0.19

0.17

0.15

Discounting Factor
Levellised benefit

0.20

(Rs/kWh)

159

Annexure 3.6 B
Select State

Harayana

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

600.44

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
420.310
180.133

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

420.310
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

180.133
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80 IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)

Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
3195.86
3174
5.00%
47.26
5.72%
40.00

160

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
232.94
4.70

2
301.03
4.88

3
316.08
5.13

4
331.89
5.38

5
348.48
5.65

6
365.90
5.93

7
384.20
6.23

8
403.41
6.54

9
423.58
6.87

10
444.76
7.21

11
467.00
7.57

12
490.35
7.95

13
514.86
8.35

14
540.61
8.77

15
567.64
9.20

16
596.02
9.66

17
625.82
10.15

18
657.11
10.66

19
689.97
11.19

20
724.47
11.75

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.01
51.40
21.13
36.03
190.83
3.85

2
49.97
35.01
46.93
25.79
36.03
193.72
3.14

3
52.83
35.01
42.46
26.86
36.03
193.19
3.13

4
55.85
35.01
37.99
28.00
36.03
192.87
3.13

5
59.04
35.01
33.52
29.20
36.03
192.79
3.13

6
62.42
35.01
29.05
30.46
36.03
192.96
3.13

7
65.99
35.01
24.58
31.79
36.03
193.40
3.14

8
69.76
35.01
20.11
33.20
36.03
194.11
3.15

9
73.75
35.01
15.64
34.68
36.03
195.11
3.16

10
77.97
35.01
11.17
36.25
36.03
196.43
3.19

11
82.43
35.01
6.70
38.06
43.23
205.43
3.33

12
87.15
35.01
2.23
39.80
43.23
207.42
3.36

13
92.13
15.04
-2.23
41.18
43.23
189.35
3.07

14
97.40
15.04
0.00
43.26
43.23
198.93
3.23

15
102.97
15.04
0.00
45.39
43.23
206.64
3.35

16
108.87
15.04
0.00
47.64
43.23
214.77
3.48

17
115.09
15.04
0.00
50.00
43.23
223.36
3.62

18
121.68
15.04
0.00
52.47
43.23
232.42
3.77

19
128.64
15.04
0.00
55.08
43.23
241.99
3.92

20
135.99
15.04
0.00
57.82
43.23
252.08
4.09

Levellised
6.56
1.16
0.52
0.44
0.54
0.63
9.87

1
4.70
0.95
0.71
1.04
0.43
0.73
8.55

2
4.88
0.81
0.57
0.76
0.42
0.58
8.02

3
5.13
0.86
0.57
0.69
0.44
0.58
8.26

4
5.38
0.91
0.57
0.62
0.45
0.58
8.51

5
5.65
0.96
0.57
0.54
0.47
0.58
8.78

6
5.93
1.01
0.57
0.47
0.49
0.58
9.06

7
6.23
1.07
0.57
0.40
0.52
0.58
9.37

8
6.54
1.13
0.57
0.33
0.54
0.58
9.69

9
6.87
1.20
0.57
0.25
0.56
0.58
10.03

10
7.21
1.26
0.57
0.18
0.59
0.58
10.40

11
7.57
1.34
0.57
0.11
0.62
0.70
10.90

12
7.95
1.41
0.57
0.04
0.65
0.70
11.31

13
8.35
1.49
0.24
-0.04
0.67
0.70
11.42

14
8.77
1.58
0.24
0.00
0.70
0.70
11.99

15
9.20
1.67
0.24
0.00
0.74
0.70
12.56

16
9.66
1.77
0.24
0.00
0.77
0.70
13.15

17
10.15
1.87
0.24
0.00
0.81
0.70
13.77

18
10.66
1.97
0.24
0.00
0.85
0.70
14.42

19
11.19
2.09
0.24
0.00
0.89
0.70
15.11

20
11.75
2.21
0.24
0.00
0.94
0.70
15.83

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.70 Rs/Kwh
3.30 Rs/Kwh
8.00 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
600.443

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

Unit
%
Rs Lakh

1
2.64%
15.85

2
5.28%
31.70

3
5.28%
31.70

4
5.28%
31.70

5
5.28%
31.70

6
5.28%
31.70

7
5.28%
31.70

8
5.28%
31.70

9
5.28%
31.70

10
5.28%
31.70

11
5.28%
31.70

12
5.28%
31.70

13
5.28%
31.70

14
5.28%
31.70

15
5.28%
31.70

16
5.28%
31.70

17
5.28%
31.70

18
2.88%
17.29

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
300.22

50.00%
45.00%
5%
270.20

5.00%
4.00%
1.00%
24.02

1.00%
0.80%
0.20%
4.80

0.20%
0.16%
0.04%
0.96

0.04%
0.03%
0.01%
0.19

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

284.37
98.42
2.48
3.97

238.50
82.54
6.17
1.34

-7.69
-2.66
6.17
-0.04

-26.90
-9.31
6.17
-0.15

-30.74
-10.64
6.17
-0.17

-31.51
-10.91
6.17
-0.18

-31.66
-10.96
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-17.29
-5.99
6.17
-0.10

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.20

(Rs/kWh)

161

Annexure 3.6 C
Select State

Maharashtra

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

600.44

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
420.310
180.133

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

420.310
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

180.133
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)

Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
3268.62
3174
5.00%
47.26
5.72%
40.00

162

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
238.24
4.81

2
307.88
4.99

3
323.28
5.24

4
339.44
5.50

5
356.41
5.78

6
374.24
6.07

7
392.95
6.37

8
412.59
6.69

9
433.22
7.02

10
454.89
7.38

11
477.63
7.74

12
501.51
8.13

13
526.59
8.54

14
552.92
8.97

15
580.56
9.41

16
609.59
9.88

17
640.07
10.38

18
672.07
10.90

19
705.68
11.44

20
740.96
12.01

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.01
51.40
21.49
36.03
191.19
3.86

2
49.97
35.01
46.93
26.25
36.03
194.19
3.15

3
52.83
35.01
42.46
27.35
36.03
193.67
3.14

4
55.85
35.01
37.99
28.51
36.03
193.38
3.14

5
59.04
35.01
33.52
29.73
36.03
193.33
3.13

6
62.42
35.01
29.05
31.02
36.03
193.53
3.14

7
65.99
35.01
24.58
32.39
36.03
193.99
3.15

8
69.76
35.01
20.11
33.82
36.03
194.73
3.16

9
73.75
35.01
15.64
35.34
36.03
195.77
3.17

10
77.97
35.01
11.17
36.93
36.03
197.11
3.20

11
82.43
35.01
6.70
38.78
43.23
206.15
3.34

12
87.15
35.01
2.23
40.55
43.23
208.17
3.38

13
92.13
15.04
-2.23
41.97
43.23
190.14
3.08

14
97.40
15.04
0.00
44.09
43.23
199.77
3.24

15
102.97
15.04
0.00
46.27
43.23
207.52
3.36

16
108.87
15.04
0.00
48.56
43.23
215.70
3.50

17
115.09
15.04
0.00
50.96
43.23
224.33
3.64

18
121.68
15.04
0.00
53.49
43.23
233.44
3.79

19
128.64
15.04
0.00
56.14
43.23
243.05
3.94

20
135.99
15.04
0.00
58.94
43.23
253.20
4.11

Levellised
6.71
1.16
0.52
0.44
0.55
0.63
10.03

1
4.81
0.95
0.71
1.04
0.43
0.73
8.67

2
4.99
0.81
0.57
0.76
0.43
0.58
8.14

3
5.24
0.86
0.57
0.69
0.44
0.58
8.38

4
5.50
0.91
0.57
0.62
0.46
0.58
8.64

5
5.78
0.96
0.57
0.54
0.48
0.58
8.91

6
6.07
1.01
0.57
0.47
0.50
0.58
9.21

7
6.37
1.07
0.57
0.40
0.53
0.58
9.52

8
6.69
1.13
0.57
0.33
0.55
0.58
9.85

9
7.02
1.20
0.57
0.25
0.57
0.58
10.20

10
7.38
1.26
0.57
0.18
0.60
0.58
10.57

11
7.74
1.34
0.57
0.11
0.63
0.70
11.09

12
8.13
1.41
0.57
0.04
0.66
0.70
11.51

13
8.54
1.49
0.24
-0.04
0.68
0.70
11.62

14
8.97
1.58
0.24
0.00
0.71
0.70
12.20

15
9.41
1.67
0.24
0.00
0.75
0.70
12.78

16
9.88
1.77
0.24
0.00
0.79
0.70
13.38

17
10.38
1.87
0.24
0.00
0.83
0.70
14.02

18
10.90
1.97
0.24
0.00
0.87
0.70
14.68

19
11.44
2.09
0.24
0.00
0.91
0.70
15.38

20
12.01
2.21
0.24
0.00
0.96
0.70
16.12

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.81 Rs/Kwh
3.31 Rs/Kwh
8.12 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
600.443

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

Unit
%
Rs Lakh

1
2.64%
15.85

2
5.28%
31.70

3
5.28%
31.70

4
5.28%
31.70

5
5.28%
31.70

6
5.28%
31.70

7
5.28%
31.70

8
5.28%
31.70

9
5.28%
31.70

10
5.28%
31.70

11
5.28%
31.70

12
5.28%
31.70

13
5.28%
31.70

14
5.28%
31.70

15
5.28%
31.70

16
5.28%
31.70

17
5.28%
31.70

18
2.88%
17.29

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
300.22

50.00%
45.00%
5%
270.20

5.00%
4.00%
1.00%
24.02

1.00%
0.80%
0.20%
4.80

0.20%
0.16%
0.04%
0.96

0.04%
0.03%
0.01%
0.19

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

284.37
98.42
2.48
3.97

238.50
82.54
6.17
1.34

-7.69
-2.66
6.17
-0.04

-26.90
-9.31
6.17
-0.15

-30.74
-10.64
6.17
-0.17

-31.51
-10.91
6.17
-0.18

-31.66
-10.96
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-17.29
-5.99
6.17
-0.10

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.20

(Rs/kWh)

163

Annexure 3.6 D
Select State

Punjab

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

600.44

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
420.310
180.133

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

420.310
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

180.133
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)

Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
3342.60
3174
5.00%
47.26
5.72%
40.00

164

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
243.64
4.92

2
314.85
5.11

3
330.60
5.36

4
347.13
5.63

5
364.48
5.91

6
382.71
6.21

7
401.84
6.52

8
421.93
6.84

9
443.03
7.18

10
465.18
7.54

11
488.44
7.92

12
512.86
8.32

13
538.51
8.73

14
565.43
9.17

15
593.70
9.63

16
623.39
10.11

17
654.56
10.61

18
687.28
11.14

19
721.65
11.70

20
757.73
12.29

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.01
51.40
21.85
36.03
191.55
3.87

2
49.97
35.01
46.93
26.73
36.03
194.66
3.16

3
52.83
35.01
42.46
27.85
36.03
194.17
3.15

4
55.85
35.01
37.99
29.03
36.03
193.90
3.14

5
59.04
35.01
33.52
30.28
36.03
193.88
3.14

6
62.42
35.01
29.05
31.60
36.03
194.10
3.15

7
65.99
35.01
24.58
32.99
36.03
194.59
3.16

8
69.76
35.01
20.11
34.45
36.03
195.37
3.17

9
73.75
35.01
15.64
36.00
36.03
196.43
3.19

10
77.97
35.01
11.17
37.63
36.03
197.81
3.21

11
82.43
35.01
6.70
39.51
43.23
206.89
3.35

12
87.15
35.01
2.23
41.32
43.23
208.94
3.39

13
92.13
15.04
-2.23
42.78
43.23
190.95
3.10

14
97.40
15.04
0.00
44.94
43.23
200.62
3.25

15
102.97
15.04
0.00
47.16
43.23
208.41
3.38

16
108.87
15.04
0.00
49.49
43.23
216.63
3.51

17
115.09
15.04
0.00
51.94
43.23
225.31
3.65

18
121.68
15.04
0.00
54.52
43.23
234.47
3.80

19
128.64
15.04
0.00
57.23
43.23
244.14
3.96

20
135.99
15.04
0.00
60.07
43.23
254.34
4.12

Levellised
6.87
1.16
0.52
0.44
0.56
0.63
10.19

1
4.92
0.95
0.71
1.04
0.44
0.73
8.78

2
5.11
0.81
0.57
0.76
0.43
0.58
8.26

3
5.36
0.86
0.57
0.69
0.45
0.58
8.51

4
5.63
0.91
0.57
0.62
0.47
0.58
8.77

5
5.91
0.96
0.57
0.54
0.49
0.58
9.05

6
6.21
1.01
0.57
0.47
0.51
0.58
9.35

7
6.52
1.07
0.57
0.40
0.53
0.58
9.67

8
6.84
1.13
0.57
0.33
0.56
0.58
10.01

9
7.18
1.20
0.57
0.25
0.58
0.58
10.37

10
7.54
1.26
0.57
0.18
0.61
0.58
10.75

11
7.92
1.34
0.57
0.11
0.64
0.70
11.27

12
8.32
1.41
0.57
0.04
0.67
0.70
11.70

13
8.73
1.49
0.24
-0.04
0.69
0.70
11.83

14
9.17
1.58
0.24
0.00
0.73
0.70
12.42

15
9.63
1.67
0.24
0.00
0.76
0.70
13.01

16
10.11
1.77
0.24
0.00
0.80
0.70
13.62

17
10.61
1.87
0.24
0.00
0.84
0.70
14.27

18
11.14
1.97
0.24
0.00
0.88
0.70
14.95

19
11.70
2.09
0.24
0.00
0.93
0.70
15.66

20
12.29
2.21
0.24
0.00
0.97
0.70
16.41

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.92 Rs/Kwh
3.32 Rs/Kwh
8.24 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
600.443

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

Unit
%
Rs Lakh

1
2.64%
15.85

2
5.28%
31.70

3
5.28%
31.70

4
5.28%
31.70

5
5.28%
31.70

6
5.28%
31.70

7
5.28%
31.70

8
5.28%
31.70

9
5.28%
31.70

10
5.28%
31.70

11
5.28%
31.70

12
5.28%
31.70

13
5.28%
31.70

14
5.28%
31.70

15
5.28%
31.70

16
5.28%
31.70

17
5.28%
31.70

18
2.88%
17.29

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
300.22

50.00%
45.00%
5%
270.20

5.00%
4.00%
1.00%
24.02

1.00%
0.80%
0.20%
4.80

0.20%
0.16%
0.04%
0.96

0.04%
0.03%
0.01%
0.19

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

284.37
98.42
2.48
3.97

238.50
82.54
6.17
1.34

-7.69
-2.66
6.17
-0.04

-26.90
-9.31
6.17
-0.15

-30.74
-10.64
6.17
-0.17

-31.51
-10.91
6.17
-0.18

-31.66
-10.96
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-17.29
-5.99
6.17
-0.10

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.20

(Rs/kWh)

165

Annexure 3.6 E
Select State

Rajasthan

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

600.44

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
420.310
180.133

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

420.310
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

180.133
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
%
MAT
(for first 10 years)
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)

Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
2789.54
3174
5.00%
47.26
5.72%
40.00

166

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
203.32
4.10

2
262.76
4.26

3
275.90
4.47

4
289.69
4.70

5
304.18
4.93

6
319.38
5.18

7
335.35
5.44

8
352.12
5.71

9
369.73
6.00

10
388.21
6.29

11
407.62
6.61

12
428.01
6.94

13
449.41
7.29

14
471.88
7.65

15
495.47
8.03

16
520.24
8.44

17
546.26
8.86

18
573.57
9.30

19
602.25
9.77

20
632.36
10.25

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.01
51.40
19.12
36.03
188.82
3.81

2
49.97
35.01
46.93
23.19
36.03
191.13
3.10

3
52.83
35.01
42.46
24.14
36.03
190.46
3.09

4
55.85
35.01
37.99
25.14
36.03
190.01
3.08

5
59.04
35.01
33.52
26.19
36.03
189.79
3.08

6
62.42
35.01
29.05
27.30
36.03
189.81
3.08

7
65.99
35.01
24.58
28.48
36.03
190.09
3.08

8
69.76
35.01
20.11
29.72
36.03
190.63
3.09

9
73.75
35.01
15.64
31.03
36.03
191.46
3.10

10
77.97
35.01
11.17
32.41
36.03
192.59
3.12

11
82.43
35.01
6.70
34.03
43.23
201.41
3.27

12
87.15
35.01
2.23
35.57
43.23
203.19
3.29

13
92.13
15.04
-2.23
36.74
43.23
184.91
3.00

14
97.40
15.04
0.00
38.60
43.23
194.27
3.15

15
102.97
15.04
0.00
40.50
43.23
201.75
3.27

16
108.87
15.04
0.00
42.50
43.23
209.64
3.40

17
115.09
15.04
0.00
44.60
43.23
217.97
3.53

18
121.68
15.04
0.00
46.81
43.23
226.76
3.68

19
128.64
15.04
0.00
49.13
43.23
236.04
3.83

20
135.99
15.04
0.00
51.57
43.23
245.84
3.99

Levellised
5.73
1.16
0.52
0.44
0.49
0.63
8.97

1
4.10
0.95
0.71
1.04
0.39
0.73
7.92

2
4.26
0.81
0.57
0.76
0.38
0.58
7.36

3
4.47
0.86
0.57
0.69
0.39
0.58
7.56

4
4.70
0.91
0.57
0.62
0.41
0.58
7.78

5
4.93
0.96
0.57
0.54
0.42
0.58
8.01

6
5.18
1.01
0.57
0.47
0.44
0.58
8.26

7
5.44
1.07
0.57
0.40
0.46
0.58
8.52

8
5.71
1.13
0.57
0.33
0.48
0.58
8.80

9
6.00
1.20
0.57
0.25
0.50
0.58
9.10

10
6.29
1.26
0.57
0.18
0.53
0.58
9.42

11
6.61
1.34
0.57
0.11
0.55
0.70
9.88

12
6.94
1.41
0.57
0.04
0.58
0.70
10.23

13
7.29
1.49
0.24
-0.04
0.60
0.70
10.29

14
7.65
1.58
0.24
0.00
0.63
0.70
10.80

15
8.03
1.67
0.24
0.00
0.66
0.70
11.31

16
8.44
1.77
0.24
0.00
0.69
0.70
11.84

17
8.86
1.87
0.24
0.00
0.72
0.70
12.39

18
9.30
1.97
0.24
0.00
0.76
0.70
12.98

19
9.77
2.09
0.24
0.00
0.80
0.70
13.59

20
10.25
2.21
0.24
0.00
0.84
0.70
14.24

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.10 Rs/Kwh
3.25 Rs/Kwh
7.35 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
600.443

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

Unit
%
Rs Lakh

1
2.64%
15.85

2
5.28%
31.70

3
5.28%
31.70

4
5.28%
31.70

5
5.28%
31.70

6
5.28%
31.70

7
5.28%
31.70

8
5.28%
31.70

9
5.28%
31.70

10
5.28%
31.70

11
5.28%
31.70

12
5.28%
31.70

13
5.28%
31.70

14
5.28%
31.70

15
5.28%
31.70

16
5.28%
31.70

17
5.28%
31.70

18
2.88%
17.29

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
300.22

50.00%
45.00%
5%
270.20

5.00%
4.00%
1.00%
24.02

1.00%
0.80%
0.20%
4.80

0.20%
0.16%
0.04%
0.96

0.04%
0.03%
0.01%
0.19

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

284.37
98.42
2.48
3.97

238.50
82.54
6.17
1.34

-7.69
-2.66
6.17
-0.04

-26.90
-9.31
6.17
-0.15

-30.74
-10.64
6.17
-0.17

-31.51
-10.91
6.17
-0.18

-31.66
-10.96
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-17.29
-5.99
6.17
-0.10

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.20

(Rs/kWh)

167

Annexure 3.6 F
Select State

TN

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

600.44

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
420.310
180.133

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

420.310
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

180.133
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)

Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
2761.64
3174
5.00%
47.26
5.72%
40.00

168

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
201.29
4.06

2
260.13
4.22

3
273.14
4.43

4
286.79
4.65

5
301.13
4.88

6
316.19
5.13

7
332.00
5.38

8
348.60
5.65

9
366.03
5.94

10
384.33
6.23

11
403.55
6.54

12
423.72
6.87

13
444.91
7.21

14
467.16
7.58

15
490.51
7.95

16
515.04
8.35

17
540.79
8.77

18
567.83
9.21

19
596.22
9.67

20
626.03
10.15

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.01
51.40
18.98
36.03
188.68
3.81

2
49.97
35.01
46.93
23.02
36.03
190.95
3.10

3
52.83
35.01
42.46
23.95
36.03
190.27
3.09

4
55.85
35.01
37.99
24.94
36.03
189.81
3.08

5
59.04
35.01
33.52
25.98
36.03
189.58
3.07

6
62.42
35.01
29.05
27.09
36.03
189.59
3.07

7
65.99
35.01
24.58
28.25
36.03
189.86
3.08

8
69.76
35.01
20.11
29.48
36.03
190.39
3.09

9
73.75
35.01
15.64
30.78
36.03
191.21
3.10

10
77.97
35.01
11.17
32.15
36.03
192.33
3.12

11
82.43
35.01
6.70
33.75
43.23
201.13
3.26

12
87.15
35.01
2.23
35.28
43.23
202.90
3.29

13
92.13
15.04
-2.23
36.43
43.23
184.60
2.99

14
97.40
15.04
0.00
38.28
43.23
193.95
3.15

15
102.97
15.04
0.00
40.16
43.23
201.41
3.27

16
108.87
15.04
0.00
42.15
43.23
209.28
3.39

17
115.09
15.04
0.00
44.23
43.23
217.60
3.53

18
121.68
15.04
0.00
46.42
43.23
226.37
3.67

19
128.64
15.04
0.00
48.72
43.23
235.63
3.82

20
135.99
15.04
0.00
51.14
43.23
245.41
3.98

Levellised
5.67
1.16
0.52
0.44
0.48
0.63
8.91

1
4.06
0.95
0.71
1.04
0.38
0.73
7.87

2
4.22
0.81
0.57
0.76
0.37
0.58
7.31

3
4.43
0.86
0.57
0.69
0.39
0.58
7.51

4
4.65
0.91
0.57
0.62
0.40
0.58
7.73

5
4.88
0.96
0.57
0.54
0.42
0.58
7.96

6
5.13
1.01
0.57
0.47
0.44
0.58
8.20

7
5.38
1.07
0.57
0.40
0.46
0.58
8.46

8
5.65
1.13
0.57
0.33
0.48
0.58
8.74

9
5.94
1.20
0.57
0.25
0.50
0.58
9.04

10
6.23
1.26
0.57
0.18
0.52
0.58
9.35

11
6.54
1.34
0.57
0.11
0.55
0.70
9.80

12
6.87
1.41
0.57
0.04
0.57
0.70
10.16

13
7.21
1.49
0.24
-0.04
0.59
0.70
10.21

14
7.58
1.58
0.24
0.00
0.62
0.70
10.72

15
7.95
1.67
0.24
0.00
0.65
0.70
11.22

16
8.35
1.77
0.24
0.00
0.68
0.70
11.75

17
8.77
1.87
0.24
0.00
0.72
0.70
12.30

18
9.21
1.97
0.24
0.00
0.75
0.70
12.88

19
9.67
2.09
0.24
0.00
0.79
0.70
13.49

20
10.15
2.21
0.24
0.00
0.83
0.70
14.13

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.06 Rs/Kwh
3.24 Rs/Kwh
7.30 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
600.443

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

Unit
%
Rs Lakh

1
2.64%
15.85

2
5.28%
31.70

3
5.28%
31.70

4
5.28%
31.70

5
5.28%
31.70

6
5.28%
31.70

7
5.28%
31.70

8
5.28%
31.70

9
5.28%
31.70

10
5.28%
31.70

11
5.28%
31.70

12
5.28%
31.70

13
5.28%
31.70

14
5.28%
31.70

15
5.28%
31.70

16
5.28%
31.70

17
5.28%
31.70

18
2.88%
17.29

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
300.22

50.00%
45.00%
5%
270.20

5.00%
4.00%
1.00%
24.02

1.00%
0.80%
0.20%
4.80

0.20%
0.16%
0.04%
0.96

0.04%
0.03%
0.01%
0.19

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

284.37
98.42
2.48
3.97

238.50
82.54
6.17
1.34

-7.69
-2.66
6.17
-0.04

-26.90
-9.31
6.17
-0.15

-30.74
-10.64
6.17
-0.17

-31.51
-10.91
6.17
-0.18

-31.66
-10.96
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-17.29
-5.99
6.17
-0.10

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.20

(Rs/kWh)

169

Annexure 3.6 G
Select State

UP

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

600.44

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
420.310
180.133

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

420.310
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

180.133
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80 IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)

Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
2856.25
3174
5.00%
47.26
5.72%
40.00

170

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
208.19
4.20

2
269.04
4.36

3
282.49
4.58

4
296.62
4.81

5
311.45
5.05

6
327.02
5.30

7
343.37
5.57

8
360.54
5.85

9
378.57
6.14

10
397.50
6.45

11
417.37
6.77

12
438.24
7.11

13
460.15
7.46

14
483.16
7.83

15
507.32
8.23

16
532.68
8.64

17
559.32
9.07

18
587.28
9.52

19
616.65
10.00

20
647.48
10.50

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.01
51.40
19.45
36.03
189.15
3.82

2
49.97
35.01
46.93
23.62
36.03
191.55
3.11

3
52.83
35.01
42.46
24.59
36.03
190.91
3.10

4
55.85
35.01
37.99
25.61
36.03
190.48
3.09

5
59.04
35.01
33.52
26.68
36.03
190.28
3.09

6
62.42
35.01
29.05
27.82
36.03
190.33
3.09

7
65.99
35.01
24.58
29.02
36.03
190.63
3.09

8
69.76
35.01
20.11
30.29
36.03
191.20
3.10

9
73.75
35.01
15.64
31.63
36.03
192.06
3.11

10
77.97
35.01
11.17
33.04
36.03
193.22
3.13

11
82.43
35.01
6.70
34.69
43.23
202.07
3.28

12
87.15
35.01
2.23
36.26
43.23
203.88
3.31

13
92.13
15.04
-2.23
37.47
43.23
185.64
3.01

14
97.40
15.04
0.00
39.36
43.23
195.04
3.16

15
102.97
15.04
0.00
41.30
43.23
202.55
3.28

16
108.87
15.04
0.00
43.34
43.23
210.48
3.41

17
115.09
15.04
0.00
45.49
43.23
218.85
3.55

18
121.68
15.04
0.00
47.74
43.23
227.69
3.69

19
128.64
15.04
0.00
50.11
43.23
237.02
3.84

20
135.99
15.04
0.00
52.60
43.23
246.86
4.00

Levellised
5.87
1.16
0.52
0.44
0.50
0.63
9.12

1
4.20
0.95
0.71
1.04
0.39
0.73
8.02

2
4.36
0.81
0.57
0.76
0.38
0.58
7.47

3
4.58
0.86
0.57
0.69
0.40
0.58
7.68

4
4.81
0.91
0.57
0.62
0.42
0.58
7.90

5
5.05
0.96
0.57
0.54
0.43
0.58
8.14

6
5.30
1.01
0.57
0.47
0.45
0.58
8.39

7
5.57
1.07
0.57
0.40
0.47
0.58
8.66

8
5.85
1.13
0.57
0.33
0.49
0.58
8.95

9
6.14
1.20
0.57
0.25
0.51
0.58
9.25

10
6.45
1.26
0.57
0.18
0.54
0.58
9.58

11
6.77
1.34
0.57
0.11
0.56
0.70
10.04

12
7.11
1.41
0.57
0.04
0.59
0.70
10.41

13
7.46
1.49
0.24
-0.04
0.61
0.70
10.47

14
7.83
1.58
0.24
0.00
0.64
0.70
11.00

15
8.23
1.67
0.24
0.00
0.67
0.70
11.51

16
8.64
1.77
0.24
0.00
0.70
0.70
12.05

17
9.07
1.87
0.24
0.00
0.74
0.70
12.62

18
9.52
1.97
0.24
0.00
0.77
0.70
13.21

19
10.00
2.09
0.24
0.00
0.81
0.70
13.84

20
10.50
2.21
0.24
0.00
0.85
0.70
14.50

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.20 Rs/Kwh
3.25 Rs/Kwh
7.46 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
600.443

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

Unit
%
Rs Lakh

1
2.64%
15.85

2
5.28%
31.70

3
5.28%
31.70

4
5.28%
31.70

5
5.28%
31.70

6
5.28%
31.70

7
5.28%
31.70

8
5.28%
31.70

9
5.28%
31.70

10
5.28%
31.70

11
5.28%
31.70

12
5.28%
31.70

13
5.28%
31.70

14
5.28%
31.70

15
5.28%
31.70

16
5.28%
31.70

17
5.28%
31.70

18
2.88%
17.29

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
300.22

50.00%
45.00%
5%
270.20

5.00%
4.00%
1.00%
24.02

1.00%
0.80%
0.20%
4.80

0.20%
0.16%
0.04%
0.96

0.04%
0.03%
0.01%
0.19

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

284.37
98.42
2.48
3.97

238.50
82.54
6.17
1.34

-7.69
-2.66
6.17
-0.04

-26.90
-9.31
6.17
-0.15

-30.74
-10.64
6.17
-0.17

-31.51
-10.91
6.17
-0.18

-31.66
-10.96
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-17.29
-5.99
6.17
-0.10

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.20

(Rs/kWh)

171

Annexure 3.6 H
Select State

Others

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
13%
12%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

600.44

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
420.310
180.133

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

420.310
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

180.133
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80 IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
%
O&M Expenses (2013-14)

Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
3003.01
3174
5.00%
47.26
5.72%
40.00

172

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.74
4.95

2
1
7.01
0.84
6.17

3
1
7.01
0.84
6.17

4
1
7.01
0.84
6.17

5
1
7.01
0.84
6.17

6
1
7.01
0.84
6.17

7
1
7.01
0.84
6.17

8
1
7.01
0.84
6.17

9
1
7.01
0.84
6.17

10
1
7.01
0.84
6.17

11
1
7.01
0.84
6.17

12
1
7.01
0.84
6.17

13
1
7.01
0.84
6.17

14
1
7.01
0.84
6.17

15
1
7.01
0.84
6.17

16
1
7.01
0.84
6.17

17
1
7.01
0.84
6.17

18
1
7.01
0.84
6.17

19
1
7.01
0.84
6.17

20
1
7.01
0.84
6.17

Unit
Rs Lakh
Rs/kWh

Year--->

1
218.88
4.42

2
282.87
4.59

3
297.01
4.82

4
311.86
5.06

5
327.45
5.31

6
343.83
5.58

7
361.02
5.85

8
379.07
6.15

9
398.02
6.45

10
417.92
6.78

11
438.82
7.12

12
460.76
7.47

13
483.80
7.84

14
507.99
8.24

15
533.39
8.65

16
560.05
9.08

17
588.06
9.54

18
617.46
10.01

19
648.33
10.51

20
680.75
11.04

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.01
51.40
20.17
36.03
189.87
3.83

2
49.97
35.01
46.93
24.56
36.03
192.49
3.12

3
52.83
35.01
42.46
25.57
36.03
191.89
3.11

4
55.85
35.01
37.99
26.64
36.03
191.51
3.11

5
59.04
35.01
33.52
27.77
36.03
191.37
3.10

6
62.42
35.01
29.05
28.96
36.03
191.47
3.10

7
65.99
35.01
24.58
30.22
36.03
191.83
3.11

8
69.76
35.01
20.11
31.55
36.03
192.46
3.12

9
73.75
35.01
15.64
32.95
36.03
193.38
3.14

10
77.97
35.01
11.17
34.43
36.03
194.61
3.16

11
82.43
35.01
6.70
36.15
43.23
203.52
3.30

12
87.15
35.01
2.23
37.79
43.23
205.41
3.33

13
92.13
15.04
-2.23
39.07
43.23
187.24
3.04

14
97.40
15.04
0.00
41.05
43.23
196.72
3.19

15
102.97
15.04
0.00
43.07
43.23
204.32
3.31

16
108.87
15.04
0.00
45.20
43.23
212.34
3.44

17
115.09
15.04
0.00
47.43
43.23
220.80
3.58

18
121.68
15.04
0.00
49.79
43.23
229.73
3.73

19
128.64
15.04
0.00
52.26
43.23
239.16
3.88

20
135.99
15.04
0.00
54.85
43.23
249.12
4.04

Levellised
6.17
1.16
0.52
0.44
0.52
0.63
9.44

1
4.42
0.95
0.71
1.04
0.41
0.73
8.25

2
4.59
0.81
0.57
0.76
0.40
0.58
7.71

3
4.82
0.86
0.57
0.69
0.41
0.58
7.93

4
5.06
0.91
0.57
0.62
0.43
0.58
8.16

5
5.31
0.96
0.57
0.54
0.45
0.58
8.41

6
5.58
1.01
0.57
0.47
0.47
0.58
8.68

7
5.85
1.07
0.57
0.40
0.49
0.58
8.96

8
6.15
1.13
0.57
0.33
0.51
0.58
9.27

9
6.45
1.20
0.57
0.25
0.53
0.58
9.59

10
6.78
1.26
0.57
0.18
0.56
0.58
9.93

11
7.12
1.34
0.57
0.11
0.59
0.70
10.42

12
7.47
1.41
0.57
0.04
0.61
0.70
10.80

13
7.84
1.49
0.24
-0.04
0.63
0.70
10.88

14
8.24
1.58
0.24
0.00
0.67
0.70
11.43

15
8.65
1.67
0.24
0.00
0.70
0.70
11.96

16
9.08
1.77
0.24
0.00
0.73
0.70
12.52

17
9.54
1.87
0.24
0.00
0.77
0.70
13.12

18
10.01
1.97
0.24
0.00
0.81
0.70
13.74

19
10.51
2.09
0.24
0.00
0.85
0.70
14.39

20
11.04
2.21
0.24
0.00
0.89
0.70
15.08

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.42 Rs/Kwh
3.27 Rs/Kwh
7.69 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
600.443

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

Unit
%
Rs Lakh

1
2.64%
15.85

2
5.28%
31.70

3
5.28%
31.70

4
5.28%
31.70

5
5.28%
31.70

6
5.28%
31.70

7
5.28%
31.70

8
5.28%
31.70

9
5.28%
31.70

10
5.28%
31.70

11
5.28%
31.70

12
5.28%
31.70

13
5.28%
31.70

14
5.28%
31.70

15
5.28%
31.70

16
5.28%
31.70

17
5.28%
31.70

18
2.88%
17.29

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
300.22

50.00%
45.00%
5%
270.20

5.00%
4.00%
1.00%
24.02

1.00%
0.80%
0.20%
4.80

0.20%
0.16%
0.04%
0.96

0.04%
0.03%
0.01%
0.19

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

284.37
98.42
2.48
3.97

238.50
82.54
6.17
1.34

-7.69
-2.66
6.17
-0.04

-26.90
-9.31
6.17
-0.15

-30.74
-10.64
6.17
-0.17

-31.51
-10.91
6.17
-0.18

-31.66
-10.96
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-31.70
-10.97
6.17
-0.18

-17.29
-5.99
6.17
-0.10

0.00
0.00
6.17
0.00

0.00
0.00
6.17
0.00

1.00

0.95

0.86

0.78

0.70

0.63

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

0.20

(Rs/kWh)

173

Annexure 3.7 A
Biomass Power Projects [Rice Straw and Juliflora (plantation) based project] with Water Cooled Condenser
and AFBC boiler
Select State

AP

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

610.80

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
427.557
183.239

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

427.557
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

183.239
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80 IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
2807.74
3174
5.00%
47.26
5.72%
40.00

174

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
204.65
4.04

2
264.47
4.19

3
277.70
4.40

4
291.58
4.62

5
306.16
4.85

6
321.47
5.10

7
337.54
5.35

8
354.42
5.62

9
372.14
5.90

10
390.75
6.20

11
410.28
6.50

12
430.80
6.83

13
452.34
7.17

14
474.95
7.53

15
498.70
7.91

16
523.64
8.30

17
549.82
8.72

18
577.31
9.15

19
606.18
9.61

20
636.48
10.09

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.61
52.29
19.26
36.65
191.07
3.77

2
49.97
35.61
47.74
23.36
36.65
193.32
3.07

3
52.83
35.61
43.20
24.30
36.65
192.58
3.05

4
55.85
35.61
38.65
25.31
36.65
192.06
3.05

5
59.04
35.61
34.10
26.37
36.65
191.77
3.04

6
62.42
35.61
29.56
27.48
36.65
191.72
3.04

7
65.99
35.61
25.01
28.67
36.65
191.92
3.04

8
69.76
35.61
20.46
29.91
36.65
192.39
3.05

9
73.75
35.61
15.91
31.23
36.65
193.15
3.06

10
77.97
35.61
11.37
32.62
36.65
194.21
3.08

11
82.43
35.61
6.82
34.24
43.98
203.09
3.22

12
87.15
35.61
2.27
35.79
43.98
204.80
3.25

13
92.13
15.30
0.00
37.01
43.98
188.42
2.99

14
97.40
15.30
0.00
38.83
43.98
195.51
3.10

15
102.97
15.30
0.00
40.74
43.98
202.99
3.22

16
108.87
15.30
0.00
42.75
43.98
210.89
3.34

17
115.09
15.30
0.00
44.86
43.98
219.23
3.48

18
121.68
15.30
0.00
47.09
43.98
228.04
3.62

19
128.64
15.30
0.00
49.42
43.98
237.33
3.76

20
135.99
15.30
0.00
51.87
43.98
247.15
3.92

Levellised
5.64
1.14
0.52
0.44
0.48
0.63
8.84

1
4.04
0.93
0.70
1.03
0.38
0.72
7.81

2
4.19
0.79
0.56
0.76
0.37
0.58
7.26

3
4.40
0.84
0.56
0.68
0.39
0.58
7.46

4
4.62
0.89
0.56
0.61
0.40
0.58
7.67

5
4.85
0.94
0.56
0.54
0.42
0.58
7.89

6
5.10
0.99
0.56
0.47
0.44
0.58
8.14

7
5.35
1.05
0.56
0.40
0.45
0.58
8.39

8
5.62
1.11
0.56
0.32
0.47
0.58
8.67

9
5.90
1.17
0.56
0.25
0.50
0.58
8.96

10
6.20
1.24
0.56
0.18
0.52
0.58
9.27

11
6.50
1.31
0.56
0.11
0.54
0.70
9.72

12
6.83
1.38
0.56
0.04
0.57
0.70
10.08

13
7.17
1.46
0.24
0.00
0.59
0.70
10.16

14
7.53
1.54
0.24
0.00
0.62
0.70
10.63

15
7.91
1.63
0.24
0.00
0.65
0.70
11.13

16
8.30
1.73
0.24
0.00
0.68
0.70
11.65

17
8.72
1.82
0.24
0.00
0.71
0.70
12.19

18
9.15
1.93
0.24
0.00
0.75
0.70
12.77

19
9.61
2.04
0.24
0.00
0.78
0.70
13.37

20
10.09
2.16
0.24
0.00
0.82
0.70
14.01

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.04 Rs/Kwh
3.20 Rs/Kwh
7.24 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
610.795

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

Unit
%
Rs Lakh

1
2.64%
16.12

2
5.28%
32.25

3
5.28%
32.25

4
5.28%
32.25

5
5.28%
32.25

6
5.28%
32.25

7
5.28%
32.25

8
5.28%
32.25

9
5.28%
32.25

10
5.28%
32.25

11
5.28%
32.25

12
5.28%
32.25

13
5.28%
32.25

14
5.28%
32.25

15
5.28%
32.25

16
5.28%
32.25

17
5.28%
32.25

18
2.88%
17.59

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
305.40

50.00%
45.00%
5%
274.86

5.00%
4.00%
1.00%
24.43

1.00%
0.80%
0.20%
4.89

0.20%
0.16%
0.04%
0.98

0.04%
0.03%
0.01%
0.20

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

289.27
100.12
2.53
3.95

242.61
83.97
6.31
1.33

-7.82
-2.71
6.31
-0.04

-27.36
-9.47
6.31
-0.15

-31.27
-10.82
6.31
-0.17

-32.05
-11.09
6.31
-0.18

-32.21
-11.15
6.31
-0.18

-32.24
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-17.59
-6.09
6.31
-0.10

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

0.63

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

0.20

(Rs/kWh)

175

Annexure 3.7 B
Select State

Harayana

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

610.80

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
427.557
183.239

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

427.557
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

183.239
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
3195.86
3174
5.00%
47.26
5.72%
40.00

176

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
232.94
4.60

2
301.03
4.77

3
316.08
5.01

4
331.89
5.26

5
348.48
5.53

6
365.90
5.80

7
384.20
6.09

8
403.41
6.40

9
423.58
6.72

10
444.76
7.05

11
467.00
7.40

12
490.35
7.77

13
514.86
8.16

14
540.61
8.57

15
567.64
9.00

16
596.02
9.45

17
625.82
9.92

18
657.11
10.42

19
689.97
10.94

20
724.47
11.49

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.61
52.29
21.17
36.65
192.98
3.81

2
49.97
35.61
47.74
25.83
36.65
195.80
3.10

3
52.83
35.61
43.20
26.91
36.65
195.19
3.09

4
55.85
35.61
38.65
28.04
36.65
194.79
3.09

5
59.04
35.61
34.10
29.24
36.65
194.64
3.09

6
62.42
35.61
29.56
30.50
36.65
194.73
3.09

7
65.99
35.61
25.01
31.83
36.65
195.08
3.09

8
69.76
35.61
20.46
33.23
36.65
195.72
3.10

9
73.75
35.61
15.91
34.72
36.65
196.64
3.12

10
77.97
35.61
11.37
36.28
36.65
197.88
3.14

11
82.43
35.61
6.82
38.09
43.98
206.93
3.28

12
87.15
35.61
2.27
39.83
43.98
208.84
3.31

13
92.13
15.30
0.00
41.25
43.98
192.66
3.05

14
97.40
15.30
0.00
43.28
43.98
199.96
3.17

15
102.97
15.30
0.00
45.42
43.98
207.67
3.29

16
108.87
15.30
0.00
47.66
43.98
215.80
3.42

17
115.09
15.30
0.00
50.02
43.98
224.39
3.56

18
121.68
15.30
0.00
52.50
43.98
233.45
3.70

19
128.64
15.30
0.00
55.10
43.98
243.02
3.85

20
135.99
15.30
0.00
57.84
43.98
253.11
4.01

Levellised
6.42
1.14
0.52
0.44
0.53
0.63
9.67

1
4.60
0.93
0.70
1.03
0.42
0.72
8.40

2
4.77
0.79
0.56
0.76
0.41
0.58
7.88

3
5.01
0.84
0.56
0.68
0.43
0.58
8.11

4
5.26
0.89
0.56
0.61
0.44
0.58
8.35

5
5.53
0.94
0.56
0.54
0.46
0.58
8.61

6
5.80
0.99
0.56
0.47
0.48
0.58
8.89

7
6.09
1.05
0.56
0.40
0.50
0.58
9.18

8
6.40
1.11
0.56
0.32
0.53
0.58
9.50

9
6.72
1.17
0.56
0.25
0.55
0.58
9.83

10
7.05
1.24
0.56
0.18
0.58
0.58
10.19

11
7.40
1.31
0.56
0.11
0.60
0.70
10.69

12
7.77
1.38
0.56
0.04
0.63
0.70
11.09

13
8.16
1.46
0.24
0.00
0.65
0.70
11.22

14
8.57
1.54
0.24
0.00
0.69
0.70
11.74

15
9.00
1.63
0.24
0.00
0.72
0.70
12.29

16
9.45
1.73
0.24
0.00
0.76
0.70
12.87

17
9.92
1.82
0.24
0.00
0.79
0.70
13.48

18
10.42
1.93
0.24
0.00
0.83
0.70
14.12

19
10.94
2.04
0.24
0.00
0.87
0.70
14.79

20
11.49
2.16
0.24
0.00
0.92
0.70
15.50

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.60 Rs/Kwh
3.26 Rs/Kwh
7.85 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
610.795

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

Unit
%
Rs Lakh

1
2.64%
16.12

2
5.28%
32.25

3
5.28%
32.25

4
5.28%
32.25

5
5.28%
32.25

6
5.28%
32.25

7
5.28%
32.25

8
5.28%
32.25

9
5.28%
32.25

10
5.28%
32.25

11
5.28%
32.25

12
5.28%
32.25

13
5.28%
32.25

14
5.28%
32.25

15
5.28%
32.25

16
5.28%
32.25

17
5.28%
32.25

18
2.88%
17.59

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
305.40

50.00%
45.00%
5%
274.86

5.00%
4.00%
1.00%
24.43

1.00%
0.80%
0.20%
4.89

0.20%
0.16%
0.04%
0.98

0.04%
0.03%
0.01%
0.20

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

289.27
100.12
2.53
3.95

242.61
83.97
6.31
1.33

-7.82
-2.71
6.31
-0.04

-27.36
-9.47
6.31
-0.15

-31.27
-10.82
6.31
-0.17

-32.05
-11.09
6.31
-0.18

-32.21
-11.15
6.31
-0.18

-32.24
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-17.59
-6.09
6.31
-0.10

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

0.63

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

0.20

(Rs/kWh)

177

Annexure 3.7 C
Select State

Maharashtra

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

610.80

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
427.557
183.239

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

427.557
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

183.239
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
3268.62
3174
5.00%
47.26
5.72%
40.00

178

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
238.24
4.70

2
307.88
4.88

3
323.28
5.13

4
339.44
5.38

5
356.41
5.65

6
374.24
5.93

7
392.95
6.23

8
412.59
6.54

9
433.22
6.87

10
454.89
7.21

11
477.63
7.57

12
501.51
7.95

13
526.59
8.35

14
552.92
8.77

15
580.56
9.20

16
609.59
9.66

17
640.07
10.15

18
672.07
10.66

19
705.68
11.19

20
740.96
11.75

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.61
52.29
21.53
36.65
193.34
3.82

2
49.97
35.61
47.74
26.30
36.65
196.27
3.11

3
52.83
35.61
43.20
27.40
36.65
195.67
3.10

4
55.85
35.61
38.65
28.55
36.65
195.31
3.10

5
59.04
35.61
34.10
29.77
36.65
195.18
3.09

6
62.42
35.61
29.56
31.06
36.65
195.29
3.10

7
65.99
35.61
25.01
32.42
36.65
195.68
3.10

8
69.76
35.61
20.46
33.86
36.65
196.34
3.11

9
73.75
35.61
15.91
35.37
36.65
197.30
3.13

10
77.97
35.61
11.37
36.96
36.65
198.56
3.15

11
82.43
35.61
6.82
38.81
43.98
207.65
3.29

12
87.15
35.61
2.27
40.58
43.98
209.59
3.32

13
92.13
15.30
0.00
42.04
43.98
193.46
3.07

14
97.40
15.30
0.00
44.12
43.98
200.80
3.18

15
102.97
15.30
0.00
46.29
43.98
208.54
3.31

16
108.87
15.30
0.00
48.58
43.98
216.72
3.44

17
115.09
15.30
0.00
50.98
43.98
225.35
3.57

18
121.68
15.30
0.00
53.51
43.98
234.46
3.72

19
128.64
15.30
0.00
56.17
43.98
244.08
3.87

20
135.99
15.30
0.00
58.96
43.98
254.23
4.03

Levellised
6.56
1.14
0.52
0.44
0.54
0.63
9.83

1
4.70
0.93
0.70
1.03
0.42
0.72
8.52

2
4.88
0.79
0.56
0.76
0.42
0.58
7.99

3
5.13
0.84
0.56
0.68
0.43
0.58
8.23

4
5.38
0.89
0.56
0.61
0.45
0.58
8.48

5
5.65
0.94
0.56
0.54
0.47
0.58
8.75

6
5.93
0.99
0.56
0.47
0.49
0.58
9.03

7
6.23
1.05
0.56
0.40
0.51
0.58
9.33

8
6.54
1.11
0.56
0.32
0.54
0.58
9.65

9
6.87
1.17
0.56
0.25
0.56
0.58
10.00

10
7.21
1.24
0.56
0.18
0.59
0.58
10.36

11
7.57
1.31
0.56
0.11
0.62
0.70
10.87

12
7.95
1.38
0.56
0.04
0.64
0.70
11.27

13
8.35
1.46
0.24
0.00
0.67
0.70
11.42

14
8.77
1.54
0.24
0.00
0.70
0.70
11.95

15
9.20
1.63
0.24
0.00
0.73
0.70
12.51

16
9.66
1.73
0.24
0.00
0.77
0.70
13.10

17
10.15
1.82
0.24
0.00
0.81
0.70
13.72

18
10.66
1.93
0.24
0.00
0.85
0.70
14.37

19
11.19
2.04
0.24
0.00
0.89
0.70
15.06

20
11.75
2.16
0.24
0.00
0.93
0.70
15.78

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.70 Rs/Kwh
3.27 Rs/Kwh
7.97 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
610.795

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

Unit
%
Rs Lakh

1
2.64%
16.12

2
5.28%
32.25

3
5.28%
32.25

4
5.28%
32.25

5
5.28%
32.25

6
5.28%
32.25

7
5.28%
32.25

8
5.28%
32.25

9
5.28%
32.25

10
5.28%
32.25

11
5.28%
32.25

12
5.28%
32.25

13
5.28%
32.25

14
5.28%
32.25

15
5.28%
32.25

16
5.28%
32.25

17
5.28%
32.25

18
2.88%
17.59

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
305.40

50.00%
45.00%
5%
274.86

5.00%
4.00%
1.00%
24.43

1.00%
0.80%
0.20%
4.89

0.20%
0.16%
0.04%
0.98

0.04%
0.03%
0.01%
0.20

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

289.27
100.12
2.53
3.95

242.61
83.97
6.31
1.33

-7.82
-2.71
6.31
-0.04

-27.36
-9.47
6.31
-0.15

-31.27
-10.82
6.31
-0.17

-32.05
-11.09
6.31
-0.18

-32.21
-11.15
6.31
-0.18

-32.24
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-17.59
-6.09
6.31
-0.10

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

0.63

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

0.20

(Rs/kWh)

179

Annexure 3.7 D
Select State

Punjab

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

610.80

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
427.557
183.239

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

427.557
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

183.239
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
3342.60
3174
5.00%
47.26
5.72%
40.00

180

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
243.64
4.81

2
314.85
4.99

3
330.60
5.24

4
347.13
5.50

5
364.48
5.78

6
382.71
6.07

7
401.84
6.37

8
421.93
6.69

9
443.03
7.02

10
465.18
7.38

11
488.44
7.74

12
512.86
8.13

13
538.51
8.54

14
565.43
8.96

15
593.70
9.41

16
623.39
9.88

17
654.56
10.38

18
687.28
10.90

19
721.65
11.44

20
757.73
12.01

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.61
52.29
21.90
36.65
193.71
3.82

2
49.97
35.61
47.74
26.77
36.65
196.74
3.12

3
52.83
35.61
43.20
27.89
36.65
196.17
3.11

4
55.85
35.61
38.65
29.07
36.65
195.83
3.10

5
59.04
35.61
34.10
30.32
36.65
195.72
3.10

6
62.42
35.61
29.56
31.64
36.65
195.87
3.11

7
65.99
35.61
25.01
33.03
36.65
196.28
3.11

8
69.76
35.61
20.46
34.49
36.65
196.97
3.12

9
73.75
35.61
15.91
36.03
36.65
197.96
3.14

10
77.97
35.61
11.37
37.66
36.65
199.26
3.16

11
82.43
35.61
6.82
39.54
43.98
208.38
3.30

12
87.15
35.61
2.27
41.35
43.98
210.36
3.34

13
92.13
15.30
0.00
42.85
43.98
194.26
3.08

14
97.40
15.30
0.00
44.96
43.98
201.64
3.20

15
102.97
15.30
0.00
47.18
43.98
209.44
3.32

16
108.87
15.30
0.00
49.52
43.98
217.66
3.45

17
115.09
15.30
0.00
51.97
43.98
226.34
3.59

18
121.68
15.30
0.00
54.54
43.98
235.50
3.73

19
128.64
15.30
0.00
57.25
43.98
245.16
3.89

20
135.99
15.30
0.00
60.10
43.98
255.37
4.05

Levellised
6.71
1.14
0.52
0.44
0.55
0.63
9.99

1
4.81
0.93
0.70
1.03
0.43
0.72
8.63

2
4.99
0.79
0.56
0.76
0.42
0.58
8.11

3
5.24
0.84
0.56
0.68
0.44
0.58
8.35

4
5.50
0.89
0.56
0.61
0.46
0.58
8.61

5
5.78
0.94
0.56
0.54
0.48
0.58
8.88

6
6.07
0.99
0.56
0.47
0.50
0.58
9.17

7
6.37
1.05
0.56
0.40
0.52
0.58
9.48

8
6.69
1.11
0.56
0.32
0.55
0.58
9.81

9
7.02
1.17
0.56
0.25
0.57
0.58
10.16

10
7.38
1.24
0.56
0.18
0.60
0.58
10.53

11
7.74
1.31
0.56
0.11
0.63
0.70
11.05

12
8.13
1.38
0.56
0.04
0.66
0.70
11.47

13
8.54
1.46
0.24
0.00
0.68
0.70
11.62

14
8.96
1.54
0.24
0.00
0.71
0.70
12.16

15
9.41
1.63
0.24
0.00
0.75
0.70
12.73

16
9.88
1.73
0.24
0.00
0.79
0.70
13.33

17
10.38
1.82
0.24
0.00
0.82
0.70
13.97

18
10.90
1.93
0.24
0.00
0.86
0.70
14.63

19
11.44
2.04
0.24
0.00
0.91
0.70
15.33

20
12.01
2.16
0.24
0.00
0.95
0.70
16.06

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.81 Rs/Kwh
3.28 Rs/Kwh
8.08 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
610.795

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

Unit
%
Rs Lakh

1
2.64%
16.12

2
5.28%
32.25

3
5.28%
32.25

4
5.28%
32.25

5
5.28%
32.25

6
5.28%
32.25

7
5.28%
32.25

8
5.28%
32.25

9
5.28%
32.25

10
5.28%
32.25

11
5.28%
32.25

12
5.28%
32.25

13
5.28%
32.25

14
5.28%
32.25

15
5.28%
32.25

16
5.28%
32.25

17
5.28%
32.25

18
2.88%
17.59

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
305.40

50.00%
45.00%
5%
274.86

5.00%
4.00%
1.00%
24.43

1.00%
0.80%
0.20%
4.89

0.20%
0.16%
0.04%
0.98

0.04%
0.03%
0.01%
0.20

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

289.27
100.12
2.53
3.95

242.61
83.97
6.31
1.33

-7.82
-2.71
6.31
-0.04

-27.36
-9.47
6.31
-0.15

-31.27
-10.82
6.31
-0.17

-32.05
-11.09
6.31
-0.18

-32.21
-11.15
6.31
-0.18

-32.24
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-17.59
-6.09
6.31
-0.10

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

0.63

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

0.20

(Rs/kWh)

181

Annexure 3.7 E
Select State

Rajasthan

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

610.80

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
427.557
183.239

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

427.557
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

183.239
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
2789.54
3174
5.00%
47.26
5.72%
40.00

182

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
203.32
4.01

2
262.76
4.17

3
275.90
4.37

4
289.69
4.59

5
304.18
4.82

6
319.38
5.06

7
335.35
5.32

8
352.12
5.58

9
369.73
5.86

10
388.21
6.16

11
407.62
6.46

12
428.01
6.79

13
449.41
7.13

14
471.88
7.48

15
495.47
7.86

16
520.24
8.25

17
546.26
8.66

18
573.57
9.09

19
602.25
9.55

20
632.36
10.03

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.61
52.29
19.17
36.65
190.98
3.77

2
49.97
35.61
47.74
23.24
36.65
193.21
3.06

3
52.83
35.61
43.20
24.18
36.65
192.46
3.05

4
55.85
35.61
38.65
25.18
36.65
191.93
3.04

5
59.04
35.61
34.10
26.23
36.65
191.63
3.04

6
62.42
35.61
29.56
27.34
36.65
191.57
3.04

7
65.99
35.61
25.01
28.52
36.65
191.77
3.04

8
69.76
35.61
20.46
29.76
36.65
192.24
3.05

9
73.75
35.61
15.91
31.06
36.65
192.99
3.06

10
77.97
35.61
11.37
32.44
36.65
194.04
3.08

11
82.43
35.61
6.82
34.06
43.98
202.90
3.22

12
87.15
35.61
2.27
35.60
43.98
204.61
3.24

13
92.13
15.30
0.00
36.81
43.98
188.22
2.98

14
97.40
15.30
0.00
38.62
43.98
195.30
3.10

15
102.97
15.30
0.00
40.52
43.98
202.77
3.21

16
108.87
15.30
0.00
42.52
43.98
210.66
3.34

17
115.09
15.30
0.00
44.62
43.98
218.99
3.47

18
121.68
15.30
0.00
46.83
43.98
227.79
3.61

19
128.64
15.30
0.00
49.15
43.98
237.07
3.76

20
135.99
15.30
0.00
51.60
43.98
246.87
3.91

Levellised
5.60
1.14
0.52
0.44
0.48
0.63
8.80

1
4.01
0.93
0.70
1.03
0.38
0.72
7.78

2
4.17
0.79
0.56
0.76
0.37
0.58
7.23

3
4.37
0.84
0.56
0.68
0.38
0.58
7.43

4
4.59
0.89
0.56
0.61
0.40
0.58
7.64

5
4.82
0.94
0.56
0.54
0.42
0.58
7.86

6
5.06
0.99
0.56
0.47
0.43
0.58
8.10

7
5.32
1.05
0.56
0.40
0.45
0.58
8.36

8
5.58
1.11
0.56
0.32
0.47
0.58
8.63

9
5.86
1.17
0.56
0.25
0.49
0.58
8.92

10
6.16
1.24
0.56
0.18
0.51
0.58
9.23

11
6.46
1.31
0.56
0.11
0.54
0.70
9.68

12
6.79
1.38
0.56
0.04
0.56
0.70
10.03

13
7.13
1.46
0.24
0.00
0.58
0.70
10.11

14
7.48
1.54
0.24
0.00
0.61
0.70
10.58

15
7.86
1.63
0.24
0.00
0.64
0.70
11.07

16
8.25
1.73
0.24
0.00
0.67
0.70
11.59

17
8.66
1.82
0.24
0.00
0.71
0.70
12.13

18
9.09
1.93
0.24
0.00
0.74
0.70
12.71

19
9.55
2.04
0.24
0.00
0.78
0.70
13.31

20
10.03
2.16
0.24
0.00
0.82
0.70
13.94

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.01 Rs/Kwh
3.20 Rs/Kwh
7.21 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
610.795

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

Unit
%
Rs Lakh

1
2.64%
16.12

2
5.28%
32.25

3
5.28%
32.25

4
5.28%
32.25

5
5.28%
32.25

6
5.28%
32.25

7
5.28%
32.25

8
5.28%
32.25

9
5.28%
32.25

10
5.28%
32.25

11
5.28%
32.25

12
5.28%
32.25

13
5.28%
32.25

14
5.28%
32.25

15
5.28%
32.25

16
5.28%
32.25

17
5.28%
32.25

18
2.88%
17.59

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
305.40

50.00%
45.00%
5%
274.86

5.00%
4.00%
1.00%
24.43

1.00%
0.80%
0.20%
4.89

0.20%
0.16%
0.04%
0.98

0.04%
0.03%
0.01%
0.20

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

289.27
100.12
2.53
3.95

242.61
83.97
6.31
1.33

-7.82
-2.71
6.31
-0.04

-27.36
-9.47
6.31
-0.15

-31.27
-10.82
6.31
-0.17

-32.05
-11.09
6.31
-0.18

-32.21
-11.15
6.31
-0.18

-32.24
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-17.59
-6.09
6.31
-0.10

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

0.63

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

0.20

(Rs/kWh)

183

Annexure 3.7 F
Select State

TN

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

610.80

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
427.557
183.239

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

427.557
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

183.239
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80
IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
2761.64
3174
5.00%
47.26
5.72%
40.00

184

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
201.29
3.97

2
260.13
4.12

3
273.14
4.33

4
286.79
4.55

5
301.13
4.77

6
316.19
5.01

7
332.00
5.26

8
348.60
5.53

9
366.03
5.80

10
384.33
6.09

11
403.55
6.40

12
423.72
6.72

13
444.91
7.05

14
467.16
7.41

15
490.51
7.78

16
515.04
8.17

17
540.79
8.57

18
567.83
9.00

19
596.22
9.45

20
626.03
9.93

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.61
52.29
19.03
36.65
190.84
3.77

2
49.97
35.61
47.74
23.06
36.65
193.03
3.06

3
52.83
35.61
43.20
24.00
36.65
192.27
3.05

4
55.85
35.61
38.65
24.98
36.65
191.74
3.04

5
59.04
35.61
34.10
26.03
36.65
191.43
3.04

6
62.42
35.61
29.56
27.13
36.65
191.36
3.03

7
65.99
35.61
25.01
28.29
36.65
191.54
3.04

8
69.76
35.61
20.46
29.52
36.65
192.00
3.04

9
73.75
35.61
15.91
30.81
36.65
192.74
3.06

10
77.97
35.61
11.37
32.18
36.65
193.78
3.07

11
82.43
35.61
6.82
33.79
43.98
202.63
3.21

12
87.15
35.61
2.27
35.31
43.98
204.32
3.24

13
92.13
15.30
0.00
36.51
43.98
187.92
2.98

14
97.40
15.30
0.00
38.30
43.98
194.98
3.09

15
102.97
15.30
0.00
40.19
43.98
202.44
3.21

16
108.87
15.30
0.00
42.17
43.98
210.31
3.33

17
115.09
15.30
0.00
44.25
43.98
218.62
3.47

18
121.68
15.30
0.00
46.44
43.98
227.40
3.61

19
128.64
15.30
0.00
48.75
43.98
236.66
3.75

20
135.99
15.30
0.00
51.17
43.98
246.44
3.91

Levellised
5.55
1.14
0.52
0.44
0.47
0.63
8.74

1
3.97
0.93
0.70
1.03
0.38
0.72
7.74

2
4.12
0.79
0.56
0.76
0.37
0.58
7.18

3
4.33
0.84
0.56
0.68
0.38
0.58
7.38

4
4.55
0.89
0.56
0.61
0.40
0.58
7.59

5
4.77
0.94
0.56
0.54
0.41
0.58
7.81

6
5.01
0.99
0.56
0.47
0.43
0.58
8.05

7
5.26
1.05
0.56
0.40
0.45
0.58
8.30

8
5.53
1.11
0.56
0.32
0.47
0.58
8.57

9
5.80
1.17
0.56
0.25
0.49
0.58
8.86

10
6.09
1.24
0.56
0.18
0.51
0.58
9.17

11
6.40
1.31
0.56
0.11
0.54
0.70
9.61

12
6.72
1.38
0.56
0.04
0.56
0.70
9.96

13
7.05
1.46
0.24
0.00
0.58
0.70
10.03

14
7.41
1.54
0.24
0.00
0.61
0.70
10.50

15
7.78
1.63
0.24
0.00
0.64
0.70
10.99

16
8.17
1.73
0.24
0.00
0.67
0.70
11.50

17
8.57
1.82
0.24
0.00
0.70
0.70
12.04

18
9.00
1.93
0.24
0.00
0.74
0.70
12.61

19
9.45
2.04
0.24
0.00
0.77
0.70
13.21

20
9.93
2.16
0.24
0.00
0.81
0.70
13.83

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

3.97 Rs/Kwh
3.20 Rs/Kwh
7.17 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
610.795

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

Unit
%
Rs Lakh

1
2.64%
16.12

2
5.28%
32.25

3
5.28%
32.25

4
5.28%
32.25

5
5.28%
32.25

6
5.28%
32.25

7
5.28%
32.25

8
5.28%
32.25

9
5.28%
32.25

10
5.28%
32.25

11
5.28%
32.25

12
5.28%
32.25

13
5.28%
32.25

14
5.28%
32.25

15
5.28%
32.25

16
5.28%
32.25

17
5.28%
32.25

18
2.88%
17.59

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
305.40

50.00%
45.00%
5%
274.86

5.00%
4.00%
1.00%
24.43

1.00%
0.80%
0.20%
4.89

0.20%
0.16%
0.04%
0.98

0.04%
0.03%
0.01%
0.20

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

289.27
100.12
2.53
3.95

242.61
83.97
6.31
1.33

-7.82
-2.71
6.31
-0.04

-27.36
-9.47
6.31
-0.15

-31.27
-10.82
6.31
-0.17

-32.05
-11.09
6.31
-0.18

-32.21
-11.15
6.31
-0.18

-32.24
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-17.59
-6.09
6.31
-0.10

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

0.63

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

0.20

(Rs/kWh)

185

Annexure 3.7 G
Select State

UP

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

610.80

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
427.557
183.239

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

427.557
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

183.239
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80 IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
2856.25
3174
5.00%
47.26
5.72%
40.00

186

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
208.19
4.11

2
269.04
4.27

3
282.49
4.48

4
296.62
4.70

5
311.45
4.94

6
327.02
5.18

7
343.37
5.44

8
360.54
5.72

9
378.57
6.00

10
397.50
6.30

11
417.37
6.62

12
438.24
6.95

13
460.15
7.30

14
483.16
7.66

15
507.32
8.04

16
532.68
8.45

17
559.32
8.87

18
587.28
9.31

19
616.65
9.78

20
647.48
10.27

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.61
52.29
19.50
36.65
191.31
3.78

2
49.97
35.61
47.74
23.67
36.65
193.63
3.07

3
52.83
35.61
43.20
24.63
36.65
192.91
3.06

4
55.85
35.61
38.65
25.65
36.65
192.40
3.05

5
59.04
35.61
34.10
26.73
36.65
192.13
3.05

6
62.42
35.61
29.56
27.86
36.65
192.09
3.05

7
65.99
35.61
25.01
29.06
36.65
192.32
3.05

8
69.76
35.61
20.46
30.33
36.65
192.81
3.06

9
73.75
35.61
15.91
31.66
36.65
193.59
3.07

10
77.97
35.61
11.37
33.07
36.65
194.67
3.09

11
82.43
35.61
6.82
34.73
43.98
203.57
3.23

12
87.15
35.61
2.27
36.29
43.98
205.30
3.26

13
92.13
15.30
0.00
37.54
43.98
188.95
3.00

14
97.40
15.30
0.00
39.39
43.98
196.07
3.11

15
102.97
15.30
0.00
41.33
43.98
203.58
3.23

16
108.87
15.30
0.00
43.36
43.98
211.51
3.35

17
115.09
15.30
0.00
45.51
43.98
219.88
3.49

18
121.68
15.30
0.00
47.76
43.98
228.72
3.63

19
128.64
15.30
0.00
50.13
43.98
238.04
3.77

20
135.99
15.30
0.00
52.62
43.98
247.89
3.93

Levellised
5.74
1.14
0.52
0.44
0.49
0.63
8.95

1
4.11
0.93
0.70
1.03
0.38
0.72
7.88

2
4.27
0.79
0.56
0.76
0.38
0.58
7.34

3
4.48
0.84
0.56
0.68
0.39
0.58
7.54

4
4.70
0.89
0.56
0.61
0.41
0.58
7.75

5
4.94
0.94
0.56
0.54
0.42
0.58
7.98

6
5.18
0.99
0.56
0.47
0.44
0.58
8.23

7
5.44
1.05
0.56
0.40
0.46
0.58
8.49

8
5.72
1.11
0.56
0.32
0.48
0.58
8.77

9
6.00
1.17
0.56
0.25
0.50
0.58
9.07

10
6.30
1.24
0.56
0.18
0.52
0.58
9.39

11
6.62
1.31
0.56
0.11
0.55
0.70
9.84

12
6.95
1.38
0.56
0.04
0.58
0.70
10.20

13
7.30
1.46
0.24
0.00
0.60
0.70
10.29

14
7.66
1.54
0.24
0.00
0.62
0.70
10.77

15
8.04
1.63
0.24
0.00
0.66
0.70
11.27

16
8.45
1.73
0.24
0.00
0.69
0.70
11.80

17
8.87
1.82
0.24
0.00
0.72
0.70
12.35

18
9.31
1.93
0.24
0.00
0.76
0.70
12.94

19
9.78
2.04
0.24
0.00
0.79
0.70
13.55

20
10.27
2.16
0.24
0.00
0.83
0.70
14.20

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.11 Rs/Kwh
3.21 Rs/Kwh
7.32 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
610.795

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

Unit
%
Rs Lakh

1
2.64%
16.12

2
5.28%
32.25

3
5.28%
32.25

4
5.28%
32.25

5
5.28%
32.25

6
5.28%
32.25

7
5.28%
32.25

8
5.28%
32.25

9
5.28%
32.25

10
5.28%
32.25

11
5.28%
32.25

12
5.28%
32.25

13
5.28%
32.25

14
5.28%
32.25

15
5.28%
32.25

16
5.28%
32.25

17
5.28%
32.25

18
2.88%
17.59

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
305.40

50.00%
45.00%
5%
274.86

5.00%
4.00%
1.00%
24.43

1.00%
0.80%
0.20%
4.89

0.20%
0.16%
0.04%
0.98

0.04%
0.03%
0.01%
0.20

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
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

Net Depreciation Benefit


Tax Benefit
Net Energy generation
Per unit benefit

Rs Lakh
Rs Lakh
MU
Rs/Unit

289.27
100.12
2.53
3.95

242.61
83.97
6.31
1.33

-7.82
-2.71
6.31
-0.04

-27.36
-9.47
6.31
-0.15

-31.27
-10.82
6.31
-0.17

-32.05
-11.09
6.31
-0.18

-32.21
-11.15
6.31
-0.18

-32.24
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-32.25
-11.16
6.31
-0.18

-17.59
-6.09
6.31
-0.10

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

0.63

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

0.20

(Rs/kWh)

187

Annexure 3.7 H
Select State

Others

Assumption for Biomass Power Project Parameters


S. No. Assumption Head
1

Sub-Head

Sub-Head (2)

Unit

Assumption
s

Power Generation
Capacity
Installed Power Generation Capacity
MW
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
Years

1
11%
10%
60%
70%
80%
20

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

Power Plant Cost

Rs Lacs/MW

610.80

Debt
Equity
Total Debt Amount
Total Equity Amout

%
%
Rs Lacs
Rs Lacs

70%
30%
427.557
183.239

Loan Amount
Rs Lacs
Moratorium Period
years
Repayment Period(incld Moratorium)
years
Interest Rate
%

427.557
0
12
12.76%

Equity amount
Rs Lacs
Return on Equity for first 10 years% p.a
RoE Period
Year
Return on Equity after 10 years %

183.239
20.00%
10.00
24.00%

Debt Component

Equity Component

Weighted average of ROE


%
Discount Rate (equiv. to WACC) %
4 Financial Assumptions
Economic Assumptions
Fiscal Assumptions
Income
Tax
MAT
(for first 10 years)
%
80 IA Rate
benefits
Yes/No
Depreciation
Depreciation Rate(power plant) %
Depreciation
Rate
13th year onwards
Years
for 5.83%
depreciation
rate%
5 Working Capital
For Fixed Charges
O&M Charges
Months
Maintenance Spare (% of O&M exepenses)
Receivables for Debtors
Months
For Variable Charges
Biomass Stock
Months
Interest On Working Capital
%
6 Fuel Related Assumptions
Heat Rate
After Stabilisation period
Kcal/kwh
During Stablization Period
Kcal/kwh
Biomass
Base Price
Rs/T
GCV - Biomass
Kcal/kg
Biomass Price Escalation Factor
7 Operation & Maintenance
O&M Expenses (2016-17)
Rs Lacs
O & M Expenses Escalation
O&M Expenses (2013-14)

%
Rs Lacs

22.00%
10.64%

34.610%
21.000%
Yes
5.830%
2.505%
12.00

1
15%
2
4
13.26%
4063
4063
3003.01
3174
5.00%
47.26
5.72%
40.00

188

Determination of Tariff Component: Biomass Power Projects


Unit
MW
MU
MU
MU

Year--->

1
1
5.69
0.63
5.07

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
218.88
4.32

2
282.87
4.48

3
297.01
4.71

4
311.86
4.94

5
327.45
5.19

6
343.83
5.45

7
361.02
5.72

8
379.07
6.01

9
398.02
6.31

10
417.92
6.63

11
438.82
6.96

12
460.76
7.31

13
483.80
7.67

14
507.99
8.05

15
533.39
8.46

16
560.05
8.88

17
588.06
9.32

18
617.46
9.79

19
648.33
10.28

20
680.75
10.79

Fixed Cost
Unit
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
Variable COG
Rs/kWh
O&M expn
Rs/kWh
Depreciation
Rs/kWh
Int. on term loan
Rs/kWh
Int. on working capital
Rs/kWh
RoE
Rs/kWh
Total COG
Rs/kWh

Year--->

1
47.26
35.61
52.29
20.22
36.65
192.03
3.79

2
49.97
35.61
47.74
24.60
36.65
194.57
3.08

3
52.83
35.61
43.20
25.61
36.65
193.89
3.07

4
55.85
35.61
38.65
26.68
36.65
193.44
3.07

5
59.04
35.61
34.10
27.81
36.65
193.21
3.06

6
62.42
35.61
29.56
29.00
36.65
193.23
3.06

7
65.99
35.61
25.01
30.26
36.65
193.51
3.07

8
69.76
35.61
20.46
31.58
36.65
194.07
3.08

9
73.75
35.61
15.91
32.98
36.65
194.91
3.09

10
77.97
35.61
11.37
34.46
36.65
196.06
3.11

11
82.43
35.61
6.82
36.18
43.98
205.02
3.25

12
87.15
35.61
2.27
37.82
43.98
206.83
3.28

13
92.13
15.30
0.00
39.14
43.98
190.55
3.02

14
97.40
15.30
0.00
41.07
43.98
197.75
3.14

15
102.97
15.30
0.00
43.09
43.98
205.35
3.26

16
108.87
15.30
0.00
45.22
43.98
213.36
3.38

17
115.09
15.30
0.00
47.46
43.98
221.83
3.52

18
121.68
15.30
0.00
49.81
43.98
230.76
3.66

19
128.64
15.30
0.00
52.28
43.98
240.19
3.81

20
135.99
15.30
0.00
54.88
43.98
250.15
3.97

Levellised
6.03
1.14
0.52
0.44
0.51
0.63
9.26

1
4.32
0.93
0.70
1.03
0.40
0.72
8.11

2
4.48
0.79
0.56
0.76
0.39
0.58
7.57

3
4.71
0.84
0.56
0.68
0.41
0.58
7.78

4
4.94
0.89
0.56
0.61
0.42
0.58
8.01

5
5.19
0.94
0.56
0.54
0.44
0.58
8.26

6
5.45
0.99
0.56
0.47
0.46
0.58
8.51

7
5.72
1.05
0.56
0.40
0.48
0.58
8.79

8
6.01
1.11
0.56
0.32
0.50
0.58
9.09

9
6.31
1.17
0.56
0.25
0.52
0.58
9.40

10
6.63
1.24
0.56
0.18
0.55
0.58
9.73

11
6.96
1.31
0.56
0.11
0.57
0.70
10.21

12
7.31
1.38
0.56
0.04
0.60
0.70
10.58

13
7.67
1.46
0.24
0.00
0.62
0.70
10.69

14
8.05
1.54
0.24
0.00
0.65
0.70
11.19

15
8.46
1.63
0.24
0.00
0.68
0.70
11.71

16
8.88
1.73
0.24
0.00
0.72
0.70
12.26

17
9.32
1.82
0.24
0.00
0.75
0.70
12.84

18
9.79
1.93
0.24
0.00
0.79
0.70
13.45

19
10.28
2.04
0.24
0.00
0.83
0.70
14.09

20
10.79
2.16
0.24
0.00
0.87
0.70
14.76

Units Generation
Installed Capacity
Gross Generation
Auxiliary Consumption
Net Generation

Vaiable Cost
Biomass Cost
Per unit Var Cost

Levellised Tariff
Discount Factor

Unit

Year -->

1
1

Variable Cost (FY2016-17)


Levellised Tariff (Fixed)
Applicable Tariff (FY2016-17)

2
0.904

3
0.817

4
0.738

5
0.667

6
0.603

7
0.545

8
0.493

9
0.445

10
0.402

11
0.364

12
0.329

13
0.297

14
0.269

15
0.243

16
0.219

17
0.198

18
0.179

19
0.162

20
0.146

4.32 Rs/Kwh
3.23 Rs/Kwh
7.55 Rs/Kwh

Determination of Accelerated Depreciation for Biomass Power Project


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

90%
5.28%
80%
20.00%
34.61%
610.795

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

Unit
%
Rs Lakh

1
2.64%
16.12

2
5.28%
32.25

3
5.28%
32.25

4
5.28%
32.25

5
5.28%
32.25

6
5.28%
32.25

7
5.28%
32.25

8
5.28%
32.25

9
5.28%
32.25

10
5.28%
32.25

11
5.28%
32.25

12
5.28%
32.25

13
5.28%
32.25

14
5.28%
32.25

15
5.28%
32.25

16
5.28%
32.25

17
5.28%
32.25

18
2.88%
17.59

19
0.00%
0.00

20
0.00%
0.00

Accelerated Depreciation
Opening
Allowed during the year
Closing
Accelrated Deprn.

%
%
%
Rs Lakh

100.00%
50%
50%
305.40

50.00%
45.00%
5%
274.86

5.00%
4.00%
1.00%
24.43

1.00%
0.80%
0.20%
4.89

0.20%
0.16%
0.04%
0.98

0.04%
0.03%
0.01%
0.20

0.01%
0.01%
0.00%
0.04

0.00%
0.00%
0.00%
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

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%
0.00

0.