economics under spcgu (5) 1.7mw 35 % plf (1)

8/12/2019 Economics Under SPCGU (5) 1.7mw 35 % PLF (1)

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ECONOMICS

Estimation considering the project as Special Purposes Captive Generating Unit under

moderate windy seasons @ 35% PLF. Key Results

DSCR:

IRR: 83.27%

Average: 1.49cost of

1KWH

Basic Assumptions for the Project (Technical)

a. Location Chikkodi, Karnataka.

b. Project Capacity 8.50 MW

c. Rated Capacity of the WTG 1700 KW

d. Nos. of Wind Turbine Generators 5 Nos.

e. Cost of 1 No. WTG Rs. 12.5 Crs.

f. Total Cost of the Project Rs. 62.5 Crs.

g. Generation of Energy for 1 no. WTG per annuim 52.12 Lakhs KWH

h. Total generation of the project 260.61 Lakhs KWH

i. Plant load factor (PLF) 35 %

j. Operation & Maintenance as per manufacture's offer Rs. 14 lakhs per WTG

K. Escalation on O&M 5 % every year

l. Insurance Cost has been included in O & M offer of the WTG manufactu Rs. 0

m. Sales realisation @ Rs.6.25 Rs. 6.25 1 KWh

n. CDM @ Rs. 0.50 1 KWh

o. Escalation as and when Tariff revision by KERC applicable

p. As per standared pratices;

i. O&M estimated @ 1.50% of the project cost.ii. Insurance estimated @ 0.75% of the project cost.

iii. Project span 35 years

iv. Depriciation @ 5 % per annum.

v. one year warranty by the manufacture.

q. Total generation's 5% to wheel and 2% to bank will be charged by ESCOM and net

generation @ 93%, shall be 242.37 available to sale.


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Basic Assumptions for the Project (Financial

a. Capital Contribution : 30 % of the Project cost Rs 18.75 Crs.

i. Promoters @ 74% of the Total 30 % of the project cost 13.875

ii. Captive Cosumers @ 26% of the Total 30% of the Project cost 4.875

b. Borrowing / Loan: 70% of the project cost Rs 43.75 Crs.

Total Project cost Rs 62.50 Crs.

c. Rate of interest 11 % per annum

d.Moratorium period 1 Year

e. Repayment of loan 7 years

f. Total repayment of loan 8 Years

g. All figurs are Rs. in lakhs

h. Capital Contribution for 1 WTG: 30 % of the Project cost Rs 18.75 Crs.

i. Promoters @ 74% of the Total 25 % of the project cost 13.88

ii. Captive Cosumers @ 26% of the Total 30% of the Project cost 4.88

i. Borrowing for 1 WTG@ 70% of the project cost Rs 43.75 Crs.

Total Project cost Rs 62.5 Crs.

j. Under Captive Generating Unit mode, exp. @ Rs.0.10 per unit is considered towards sales, lisening between

Captive consumer, IPP, KPTCL, concened ESCOM and CEIGK doucmentatios for permission and monthly retuns for haselfree

functioning

Loan repayment schedule:

Sl.No Description 1 yr 2 yr 3yr 4yr 5yr 6yr 7yr. 8 yr 9 yr 10 yr

a Outstanding loan 4375.000 3937.500 3500.000 3062.500 2625.000 2187.500 1750.000 1312.500 875.000 437.500

b Pr inciple repayment 437.500 437.500 437.500 437.500 437.500 437.500 437.500 437.500 437.500 437.500

c interest on O/s loan 461.934 413.941 365.948 317.955 269.961 221.968 173.975 125.982 77.989 29.996

d Toatl (b+c) 899.434 851.441 803.448 755.455 707.461 659.468 611.475 563.482 515.489 467.496


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Profitability Statement: under Special Purpose Captive Generating Unit

Sl.No Description o yr 1 yr 2 yr 3yr 4yr 5yr 6yr 7yr. 8 yr 9 yr 10 yr

Income:

1 Generation@ 93% in lakhs KWh 210.00 242.37 242.37 242.37 242.37 242.37 242.37 242.37 242.37 242.37 242.37

2 Realisation per KWh in Rs. 6.25 6.25 6.47 6.73 7.00 7.28 7.57 7.87 8.18 8.50 8.83

3 CDM per KWh 0 0.00 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50

4 Total Income(Rs in lakhs 1312.50 1514.81 1568.13 1631.15 1696.59 1764.45 1834.74 1907.45 1982.59 2060.15 2140.13

5 Corp Exp & duties & taxes 22.00 26.00 26.00 28.00 28.00 28.00 30.00 30.00 30.00 32.00 32.00

6 O & M Charges 0.00 70.00 73.50 77.00 79.00 81.50 85.00 89.50 94.00 98.50 103.50

7 Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

8 Interest on Borrowing 340.00 461.93 413.94 365.95 317.95 269.96 221.97 173.98 125.98 77.99 30.00

9 Depreciation 204.00 302.30 287.19 272.83 259.18 246.23 233.91 222.22 211.11 200.55 190.52

10 Total Exp (Rs in lakhs) 566.00 860.23 800.63 743.77 684.14 625.69 570.88 515.69 461.09 409.04 356.02

11 Profit before Taxation 746.50 654.58 767.51 887.38 1012.45 1138.77 1263.86 1391.76 1521.50 1651.10 1784.11

12 Provision for taxes 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

13 Net Profit 746.50 654.58 767.51 887.38 1012.45 1138.77 1263.86 1391.76 1521.50 1651.10 1784.11

14 Depreciation added back 204.00 302.30 287.19 272.83 259.18 246.23 233.91 222.22 211.11 200.55 190.52

15 Net Cash accruals 950.50 956.88 1054.69 1160.20 1271.64 1384.99 1497.77 1613.98 1732.60 1851.66 1974.63

16 Repayment of Borowing 0 437.50 437.50 437.50 437.50 437.50 437.50 437.50 437.50 437.50 437.50

17 Debt Service Ratio 950.50 519.38 617.19 722.70 834.14 947.49 1060.27 1176.48 1295.10 1414.16 1537.13

18 Average DSCR

Note: Benefit of CDM @ Rs.0.50 per KWh not cosidered for the purpose of financial estimate.

Cost of Production:


1 Total Exp (Rs. In lakhs) 557.93 513.4409 470.9478 424.9546 379.4615 336.9683 293.4752 249.982 208.48887 165.50

2 Net Generation in lakhs KWh 242.37 242.37 242.37 242.37 242.37 242.37 242.37 242.37 242.37 242.37

3 Cost in Rs. Per KWh 2.30 2.12 1.94 1.75 1.57 1.39 1.21 1.03 0.86 0.68

4 Average Cost in Rs. per KWh 1.49
mailto:Generation@%2093%25%20in%20lakhs%20KWhmailto:Generation@%2093%25%20in%20lakhs%20KWh


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Cash Floow Statement:


sources of Fund:

a Profit before taxation with 1312.50 1514.81 1568.13 1631.15 1696.59 1764.45 1834.74 1907.45 1982.59 2060.15 2140.13

interest & depre added back

b Income tax benefit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

c Increase in long term loan 4375.00

d Own fund 1875.00

Total Rs. In lakhs 7562.50 1514.81 1568.13 1631.15 1696.59 1764.45 1834.74 1907.45 1982.59 2060.15 2140.13

Deposition of Fund:

e Capital, revenue & recu. Exp 6272.00 96.00 99.50 105.00 107.00 109.50 115.00 119.50 124.00 130.50 135.50

f Decreasing in Borrowing 0.00 437.50 437.50 437.50 437.50 437.50 437.50 437.50 437.50 437.50 437.50

g Interest on Borrowing 340.00 461.93 413.94 365.95 317.95 269.96 221.97 173.98 125.98 77.99 30.00

f Taxation 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Taotal Rs. In lakhs 6612.00 995.43 950.94 908.45 862.45 816.96 774.47 730.98 687.48 645.99 603.00

i. Opening balance of Cash in hand 0.00 950.50 1469.88 2087.07 2809.77 3643.91 4591.40 5651.67 6828.15 8123.26 9537.41

ii. Net Surplus / Deficit 950.50 519.38 617.19 722.70 834.14 947.49 1060.27 1176.48 1295.10 1414.16 1537.13

Closing balance of Cash in suplus 950.50 1469.88 2087.07 2809.77 3643.91 4591.40 5651.67 6828.15 8123.26 9537.41 11074.54

Note: Cash surplus in the 0 year of operation is adjusted with own fund and

net considered as own fund ( i.e Rs. 1875 - 950.50 = 924.5)

Cash Srplus details: o yr 1 yr 2 yr 3yr 4yr 5yr 6yr 7yr. 8 yr 9 yr 10 yr

recuring Exp 22.00 96.00 99.50 105.00 107.00 109.50 115.00 119.50 124.00 130.50 135.50

Interest on borrowings 340.00 461.93 413.94 365.95 317.95 269.96 221.97 173.98 125.98 77.99 30.00

Repayment of Borrowing 0 437.50 437.50 437.50 437.50 437.50 437.50 437.50 437.50 437.50 437.50

Total Cost ( Cash Flow out) 362.00 995.43 950.94 908.45 862.45 816.96 774.47 730.98 687.48 645.99 603.00

Revenue (Cash Flow in) 1312.50 1514.81 1568.13 1631.15 1696.59 1764.45 1834.74 1907.45 1982.59 2060.15 2140.13

Net surplus /deficit 950.50 519.38 617.19 722.70 834.14 947.49 1060.27 1176.48 1295.10 1414.16 1537.13


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IRR: Rs in lakhs & IRR in %

Yr Equity Borrowin Total surplus depreci net IRR %

Porject ation surplus

Cost

0

1 yr 924.50 4375.00 5299.50 519.38 302.30 217.08 23.48

2 yr 924.50 3937.50 4862.00 617.19 287.19 330.01 35.70

3 yr 924.50 3500.00 4424.50 722.70 272.83 449.88 48.66

4 yr 924.50 3062.50 3987.00 834.14 259.18 574.95 62.19

5 yr 924.50 3062.50 3987.00 947.49 246.23 701.27 75.85

6 yr 924.50 2187.50 3112.00 1060.27 233.91 826.36 89.38

7 yr 924.50 1750.00 2674.50 1176.48 222.22 954.26 103.22

8 yr 924.50 1312.50 2237.00 1295.10 211.11 1084.00 117.25

9 yr 924.50 875.00 1799.50 1414.16 200.55 1213.60 131.27

10 yr 924.50 437.50 1362.00 1537.13 190.52 1346.61 145.66

832.67

Average IRR: 83.27%

Depreciation:

Years 0 1 2 3 4 5 5 7 8 9 10

Proje 6250.00 6046.00 5743.70 5456.52 5183.69 4924.50 4678.28 4444.37 4222.15 4011.04 3810.49

cost

Dep 204.00 302.30 287.19 272.83 259.18 246.23 233.91 222.22 211.11 200.55 190.52

5%

NPC 6046.00 5743.70 5456.52 5183.69 4924.50 4678.28 4444.37 4222.15 4011.04 3810.49 3619.96


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Details of interest calculation:

Rs. In lakhs

Instalment 1 2 3 4 total/1yr 5 6 7 8 Total/2 yr

OB 4375.000 4265.625 4156.250 4046.875 3937.500 3828.125 3718.750 3609.375

instal pay 109.375 109.375 109.375 109.375 437.500 109.375 109.375 109.375 109.375 437.500

Bal 4265.625 4156.250 4046.875 3937.500 3828.125 3718.750 3609.375 3500.000

interest 119.983 116.983 113.984 110.984 461.934 107.985 104.985 101.985 98.986 413.941

Instalment 9 10 11 12 total/3yr 13 14 15 16 Total/4 yr

OB 3500.000 3390.625 3281.250 3171.875 3062.500 2953.125 2843.750 2734.375

instal pay 109.375 109.375 109.375 109.375 437.500 109.375 109.375 109.375 109.375 437.500

Bal 3390.625 3281.250 3171.875 3062.500 2953.125 2843.750 2734.375 2625.000

interest 95.986 92.987 89.987 86.988 365.948 83.988 80.988 77.989 74.989 317.955

Instalment 17 18 19 20 total/5yr 21 22 23 24 Total/ 6yr

OB 2625.000 2515.625 2406.250 2296.875 2187.500 2078.125 1968.750 1859.375

instal pay 109.375 109.375 109.375 109.375 437.500 109.375 109.375 109.375 109.375 437.500

Bal 2515.625 2406.250 2296.875 2187.500 2078.125 1968.750 1859.375 1750.000

interest 71.990 68.990 65.991 62.991 269.961 59.991 56.992 53.992 50.993 221.968

Instalment 25 26 27 28 total/7yr 29 30 31 32 Total/ 8yr

OB 1750.000 1640.625 1531.250 1421.875 1312.500 1203.125 1093.750 984.375

instal pay 109.375 109.375 109.375 109.375 437.500 109.375 109.375 109.375 109.375 437.500

Bal 1640.625 1531.250 1421.875 1312.500 1203.125 1093.750 984.375 875.000

interest 47.993 44.994 41.994 38.994 173.975 35.995 32.995 29.996 26.996 125.982

Instalment 32 33 34 35 total/9yr 36 37 38 39 Total/10yr

OB 875.000 765.625 656.250 546.875 437.500 328.125 218.750 109.375

instal pay 109.375 109.375 109.375 109.375 437.500 109.375 109.375 109.375 109.375 437.500

Bal 765.625 656.250 546.875 437.500 328.125 218.750 109.375 0.000

interest 23.997 20.997 17.997 14.998 77.989 11.998 8.999 5.999 3.000 29.996

economics under spcgu (5) 1.7mw 35 % plf (1)

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