ECONOMICS

Estimation considering the project as Special Purposes Captive Generating Unit under
moderate windy seasons @ 35% PLF.
Key Results
DSCR:
IRR:
83.27%
Average:
1.49
cost 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 manufacture
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.

Basic Assumptions for the Project (Financial

a. Capital Contribution : 30 % of the Project cost
i. Promoters @ 74% of the Total 30 % of the project cost
ii. Captive Cosumers @ 26% of the Total 30% of the Project cost

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

Total Project cost
c. Rate of interest
d.Moratorium period
e. Repayment of loan
f. Total repayment of loan
g. All figurs are Rs. in lakhs
h. Capital Contribution for 1 WTG: 30 % of the Project cost
i. Promoters @ 74% of the Total 25 % of the project cost
ii. Captive Cosumers @ 26% of the Total 30% of the Project cost

Rs

18.75 Crs.

Rs
Rs

43.75
62.50
11
1
7
8

13.875
4.875

Rs

Crs.
Crs.
% per annum
Year
years
Years

18.75 Crs.

13.88
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
a

Outstanding loan

b
c
d

1 yr

2 yr

3yr

4yr

5yr

6yr

7yr.

8 yr

9 yr

10 yr

4375.000

3937.500

3500.000

3062.500

2625.000

2187.500

1750.000

1312.500

875.000

437.500

Principle repayment
interest on O/s loan

437.500

437.500

437.500

437.500

437.500

437.500

437.500

437.500

437.500

437.500

461.934

413.941

365.948

317.955

269.961

221.968

173.975

125.982

77.989

29.996

Toatl (b+c)

899.434

851.441

803.448

755.455

707.461

659.468

611.475

563.482

515.489

467.496

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

210.00
6.25
0

242.37
6.25
0.00

242.37
6.47
0.50

242.37
6.73
0.50

242.37
7.00
0.50

242.37
7.28
0.50

242.37
7.57
0.50

242.37
7.87
0.50

242.37
8.18
0.50

242.37
8.50
0.50

242.37
8.83
0.50

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

Corp Exp & duties & taxes

O & M Charges
Insurance
Interest on Borrowing
Depreciation

22.00
0.00
0.00
340.00
204.00

26.00
70.00
0.00
461.93
302.30

26.00
73.50
0.00
413.94
287.19

28.00
77.00
0.00
365.95
272.83

28.00
79.00
0.00
317.95
259.18

28.00
81.50
0.00
269.96
246.23

30.00
85.00
0.00
221.97
233.91

30.00
89.50
0.00
173.98
222.22

30.00
94.00
0.00
125.98
211.11

32.00
98.50
0.00
77.99
200.55

32.00
103.50
0.00
30.00
190.52

566.00

860.23

800.63

743.77

684.14

625.69

570.88

515.69

461.09

409.04

356.02

746.50
0
746.50
204.00

654.58
0.00
654.58
302.30

767.51
0.00
767.51
287.19

887.38
0.00
887.38
272.83

1012.45
0.00
1012.45
259.18

1138.77
0.00
1138.77
246.23

1263.86
0.00
1263.86
233.91

1391.76
0.00
1391.76
222.22

1521.50
0.00
1521.50
211.11

1651.10
0.00
1651.10
200.55

1784.11
0.00
1784.11
190.52

950.50

956.88

1054.69

1160.20

1271.64

1384.99

1497.77

1613.98

1732.60

1851.66

1974.63

437.50

437.50

437.50

437.50

437.50

437.50

437.50

437.50

437.50

437.50

950.50

519.38

617.19

722.70

834.14

947.49

1060.27

1176.48

1295.10

1414.16

1537.13

9 yr

10 yr

Income:
1 Generation@ 93% in lakhs KWh
2 Realisation per KWh in Rs.
3 CDM per KWh
4
5
6
7
8
9

10 Total Exp (Rs in lakhs)

11
12
13
14

Profit before Taxation

Provision for taxes
Net Profit
Depreciation added back

15 Net Cash accruals

16 Repayment of Borowing
17 Debt Service Ratio

10 yr

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

Cost of Production:
Sl.No.Description

o yr

1 yr

1 Total Exp (Rs. In lakhs)

2 Net Generation in lakhs KWh
3

Cost in Rs. Per KWh

Average Cost in Rs. per KWh

2 yr

3yr

4yr

5yr

6yr

7yr.

557.93 513.4409 470.9478 424.9546 379.4615 336.9683 293.4752

242.37
242.37
242.37
242.37
242.37
242.37
242.37
2.30
1.49

2.12

1.94

1.75

1.57

1.39

1.21

8 yr

249.982 208.48887
242.37
242.37
1.03

0.86

165.50
242.37
0.68

Cash Floow Statement:

Sl.No.Description
a

sources of Fund:
Profit before taxation with
interest & depre added back
Income tax benefit
Increase in long term loan
Own fund

o yr

1 yr

2 yr

3yr

4yr

5yr

6yr

7yr.

8 yr

9 yr

10 yr

1312.50

1514.81

1568.13

1631.15

1696.59

1764.45

1834.74

1907.45

1982.59

2060.15

2140.13

0.00
4375.00
1875.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

7562.50

1514.81

1568.13

1631.15

1696.59

1764.45

1834.74

1907.45

1982.59

2060.15

2140.13

6272.00
0.00
340.00
0.00

96.00
437.50
461.93
0.00

99.50
437.50
413.94
0.00

105.00
437.50
365.95
0.00

107.00
437.50
317.95
0.00

109.50
437.50
269.96
0.00

115.00
437.50
221.97
0.00

119.50
437.50
173.98
0.00

124.00
437.50
125.98
0.00

130.50
437.50
77.99
0.00

135.50
437.50
30.00
0.00

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

ii. Net Surplus / Deficit

0.00
950.50

950.50
519.38

1469.88
617.19

2087.07
722.70

2809.77
834.14

3643.91
947.49

4591.40
1060.27

5651.67
1176.48

6828.15
1295.10

8123.26
1414.16

9537.41
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

b
c
d

Total Rs. In lakhs

e
f
g
f

Deposition of Fund:
Capital, revenue & recu. Exp
Decreasing in Borrowing
Interest on Borrowing
Taxation

Taotal Rs. In lakhs

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:

recuring Exp
Interest on borrowings
Repayment of Borrowing
Total Cost ( Cash Flow out)
Revenue
(Cash Flow in)
Net surplus /deficit

o yr
22.00
340.00
0
362.00
1312.50
950.50

1 yr
96.00
461.93
437.50
995.43
1514.81
519.38

2 yr
99.50
413.94
437.50
950.94
1568.13
617.19

3yr
105.00
365.95
437.50
908.45
1631.15
722.70

4yr
107.00
317.95
437.50
862.45
1696.59
834.14

5yr
109.50
269.96
437.50
816.96
1764.45
947.49

6yr
115.00
221.97
437.50
774.47
1834.74
1060.27

7yr.
119.50
173.98
437.50
730.98
1907.45
1176.48

8 yr
124.00
125.98
437.50
687.48
1982.59
1295.10

9 yr
130.50
77.99
437.50
645.99
2060.15
1414.16

10 yr
135.50
30.00
437.50
603.00
2140.13
1537.13

IRR:

Rs in lakhs & IRR in %

Yr

Equity

0
1 yr
2 yr
3 yr
4 yr
5 yr
6 yr
7 yr
8 yr
9 yr
10 yr

924.50
924.50
924.50
924.50
924.50
924.50
924.50
924.50
924.50
924.50

BorrowingTotal
Porject
Cost
4375.00
3937.50
3500.00
3062.50
3062.50
2187.50
1750.00
1312.50
875.00
437.50

5299.50
4862.00
4424.50
3987.00
3987.00
3112.00
2674.50
2237.00
1799.50
1362.00

surplus

519.38
617.19
722.70
834.14
947.49
1060.27
1176.48
1295.10
1414.16
1537.13

depreci
ation

302.30
287.19
272.83
259.18
246.23
233.91
222.22
211.11
200.55
190.52

net
surplus

217.08
330.01
449.88
574.95
701.27
826.36
954.26
1084.00
1213.60
1346.61

IRR %

23.48
35.70
48.66
62.19
75.85
89.38
103.22
117.25
131.27
145.66
832.67

Average IRR:

83.27%

Depreciation:
Years
0
Project 6250.00
cost
Dep @
204.00
5%
NPC
6046.00

1
2
6046.00 5743.70

3
5456.52

4
5183.69

5
4924.50

5
4678.28

7
4444.37

8
4222.15

9
4011.04

10
3810.49

287.19

272.83

259.18

246.23

233.91

222.22

211.11

200.55

190.52

5743.70 5456.52

5183.69

4924.50

4678.28

4444.37

4222.15

4011.04

3810.49

3619.96

302.30

Details of interest calculation:

Rs. In lakhs
Instalment
OB
instal pay
Bal
interest
Instalment
OB
instal pay
Bal
interest
Instalment
OB
instal pay
Bal
interest
Instalment
OB
instal pay
Bal

4375.000 4265.625

4 total/1yr

4156.250

4046.875

109.375

109.375

109.375

4265.625 4156.250

4046.875

3937.500

113.984

110.984

109.375
119.983

116.983

10

11

3500.000 3390.625

3281.250

109.375

12 total/3yr

109.375

109.375

109.375

3171.875

3062.500

89.987

86.988

92.987

17

18

19

2625.000 2515.625

2406.250

109.375

109.375

109.375

2296.875

2187.500
62.991

65.991

25

26

27

1750.000 1640.625

1531.250

1421.875

109.375

109.375

1640.625 1531.250

1421.875

1312.500

47.993

44.994

41.994

38.994

32

33

34

OB

875.000

765.625

656.250

546.875

instal pay

109.375

109.375

109.375

109.375

Bal

765.625

656.250

546.875

437.500

23.997

20.997

17.997

14.998

interest
Instalment

interest

437.500
269.961

28 total/7yr

109.375

109.375

365.948

20 total/5yr

109.375
68.990

437.500

2296.875

2515.625 2406.250
71.990

461.934

3171.875

3390.625 3281.250
95.986

437.500

437.500
173.975

35 total/9yr
437.500
77.989

3937.500

3828.125

3718.750

3609.375

109.375

109.375

109.375

109.375

3828.125

3718.750

3609.375

3500.000

107.985

104.985

101.985

98.986

13

14

15

3062.500

2953.125

2843.750

8 Total/2 yr

16 Total/4 yr

109.375

109.375

109.375

109.375

2843.750

2734.375

2625.000

83.988

80.988

77.989

74.989

21

22

23

2078.125

1968.750

413.941

2734.375

2953.125

2187.500

437.500

437.500
317.955

24 Total/ 6yr
1859.375

109.375

109.375

109.375

109.375

2078.125

1968.750

1859.375

1750.000

59.991

56.992

53.992

50.993

29

30

31

1312.500

1203.125

1093.750

984.375

109.375

109.375

109.375

109.375

1203.125

1093.750

984.375

875.000

35.995

32.995

29.996

26.996

36

37

38

437.500

328.125

218.750

109.375

109.375

109.375

109.375

109.375

328.125

218.750

109.375

0.000

11.998

8.999

5.999

3.000

437.500
221.968

32 Total/ 8yr
437.500
125.982

39 Total/10yr
437.500
29.996