Assumption Sheet

Sr. no.

Assumption head
Power Generation

Sub head

Capacity

project cost
2

capital Cost /MW

financial
assumption

Debt:equity

Debt component

3
Equity componenet

Fiscal Assumption

Depreciation

Depreciation

Incentives

Normative O&M expenses

O&M expense p.a
Escalation factor for O&M expense

O&M
For fixed charge

Working capital

O&M expense
maintance spare
Receivables
for variable charges
Interest on working capital

Tariff determionation for Solar PV

Sub head (2)

Unit

Parameter Values

installed power generation capacity

Capacity utilization factor
comercial operation date
useful life

MW
%
mm/yyyy
years

1
19%
6/1/2012
25

Normative capital cost

capital cost
capital subsidy, if any
Net capital cost

Rs. lakh/Mw
Rs. lakh
Rs. lakh
Rs. lakh

1000
1000
0%
1000

Tariff period

years

25

Debt
Equity
Total Debt amount
Total Equity amount

%
%
Rs. lakh
Rs. lakh

70%
30%
700
300

Loan amount
moratourim period
repayment period (incld moratourim)
interest rate

Rs. lakh
years
years
%

700
10
13.73%

equity amount
ROE for fisrt 10 years
ROE form 11th years onwards
weighted average of ROE
Discount rate

Rs. lakh
% p.a.
% p.a.
% p.a.
%

300
19%
24%
22%
16.21%

Income tax
MAT rate (for first 10 Year)
80 IA benefits

%
%

32.45%
20.01%
YES

0.189698

Depriciation rate for first 10 year

depriciation rate form 11th year onwards

% p.a.
%

generation based incentives,if any

period for GBI

Rs. Lakh/p.a.
years

Normative O&M expenses

O&M expense p.a
Escalation factor for O&M expense

% of O&M expenses

7%
1.33%

Rs. Lakh/mw
RS. Lakh
%

10.63
5.72%

months
%
months

1
15%
2

% p.a.

13.23%

Market rate of interest is taken as base rate+300 bps ( http://www.cercind.gov.in/2012/escalation/Explanation_2_4_20

OTHER PARAMETERS FOR TARIFF BASED COMPETITIVE BIDDING FOR TRANSMISSION SERVICE, DATED 02.04.2012

Corporate tax rate=30% http://finmin.nic.in/kelkar/chp5dt.pdf

dicount factor =Cod+Coe=10.91
cod=0.7(0.13*0.7)=0.0637
coe=0.3(0.8*(16.83-8.38)/100+(8.38/100)
= 0.0454

accelarated dep is removed

IREDA 13%
JNNSM=5%

2/escalation/Explanation_2_4_2012.pdf

EXPLANATION FOR THE NOTIFICATION ON ESCALATION FACTORS AND

Year
discount factor

1
1.000

2
0.861

unit generation
installed capacity
gross generation

unit
MW
MU

Year

1
1
1.66

2
1
1.66

Fixed cost
O&M Expenses
Depriciation
Interest on term loan
Interest on Working capital
ROE
Total fixed cost

unit
Rs.lakh
Rs.lakh
Rs.lakh
Rs.lakh
Rs.lakh
Rs.lakh

year

1
10.63
70.00
96.11
4.42
57.00
238.16

2
11.24
70.00
91.07
4.44
57.00
233.75

Levellised COG
Per Unit COG
O&M expn
depreciation
Interest on term loan
Interest on on Working capital
ROE
Total COG

unit
Rs./KWH
Rs./KWH
Rs./KWH
Rs./KWH
Rs./KWH
Rs./KWH

year

1
0.64
4.21
5.77
0.27
3.42
14.31

2
0.68
4.21
5.47
0.27
3.42
14.04

14.31

12.09

levellised tariff
levellised tariff

Rs/kwh

11.80

3
0.740

4
0.637

5
0.548

6
0.472

7
0.406

8
0.349

9
0.301

10
0.259

11
0.223

3
1
1.66

4
1
1.66

5
1
1.66

6
1
1.66

7
1
1.66

8
1
1.66

9
1
1.66

10
1
1.66

11
1
1.66

3
11.88
70.00
85.35
4.46
57.00
228.69

4
12.56
70.00
78.83
4.48
57.00
222.88

5
13.28
70.00
71.42
4.51
57.00
216.21

6
14.04
70.00
63.00
4.53
57.00
208.57

7
14.84
70.00
53.42
4.55
57.00
199.81

8
15.69
70.00
42.52
4.58
57.00
189.79

9
16.59
70.00
30.13
4.61
57.00
178.32

10
17.54
70.00
16.03
4.64
57.00
165.20

11
18.54
13.30
0.00
4.67
72.00
108.51

3
0.71
4.21
5.13
0.27
3.42
13.74

4
0.75
4.21
4.74
0.27
3.42
13.39

5
0.80
4.21
4.29
0.27
3.42
12.99

6
0.84
4.21
3.79
0.27
3.42
12.53

7
0.89
4.21
3.21
0.27
3.42
12.01

8
0.94
4.21
2.55
0.28
3.42
11.40

9
1.00
4.21
1.81
0.28
3.42
10.71

10
1.05
4.21
0.96
0.28
3.42
9.93

11
1.11
0.80
0.00
0.28
4.33
6.52

10.17

8.53

7.12

5.91

4.87

3.98

3.22

2.57

1.45

12
0.192

13
0.165

14
0.142

15
0.122

16
0.105

17
0.090

18
0.078

19
0.067

20
0.058

12
1
1.66

13
1
1.66

14
1
1.66

15
1
1.66

16
1
1.66

17
1
1.66

18
1
1.66

19
1
1.66

20
1
1.66

12
19.60
13.30
0.00
4.70
72.00
109.60

13
20.72
13.30
0.00
4.74
72.00
110.76

14
21.91
13.30
0.00
4.77
72.00
111.98

15
23.16
13.30
0.00
4.81
72.00
113.27

16
24.48
13.30
0.00
4.85
72.00
114.64

17
25.88
13.30
0.00
4.89
72.00
116.08

18
27.37
13.30
0.00
4.94
72.00
117.61

19
28.93
13.30
0.00
4.99
72.00
119.22

20
30.59
13.30
0.00
5.04
72.00
120.93

12
1.18
0.80
0.00
0.28
4.33
6.59

13
1.24
0.80
0.00
0.28
4.33
6.65

14
1.32
0.80
0.00
0.29
4.33
6.73

15
1.39
0.80
0.00
0.29
4.33
6.81

16
1.47
0.80
0.00
0.29
4.33
6.89

17
1.56
0.80
0.00
0.29
4.33
6.97

18
1.64
0.80
0.00
0.30
4.33
7.07

19
1.74
0.80
0.00
0.30
4.33
7.16

20
1.84
0.80
0.00
0.30
4.33
7.27

1.26

1.10

0.95

0.83

0.72

0.63

0.55

0.48

0.42

21
0.050

22
0.043

23
0.037

24
0.032

25
0.027

21
1
1.66

22
1
1.66

23
1
1.66

24
1
1.66

25
1
1.66

21
32.34
13.30
0.00
5.09
72.00
122.73

22
34.18
13.30
0.00
5.15
72.00
124.64

23
36.14
13.30
0.00
5.21
72.00
126.65

24
38.21
13.30
0.00
5.28
72.00
128.78

25
40.39
13.30
0.00
5.34
72.00
131.04

21
1.94
0.80
0.00
0.31
4.33
7.37

22
2.05
0.80
0.00
0.31
4.33
7.49

23
2.17
0.80
0.00
0.31
4.33
7.61

24
2.30
0.80
0.00
0.32
4.33
7.74

25
2.43
0.80
0.00
0.32
4.33
7.87

0.37

0.32

0.28

0.24

0.21

enrgy charges
Working Capital
O&M for 1 month
Receivables
Maintanace & spares
Total WCapital
Interest on WC

I have taken receivable at 11.66 rs/unit

Rs/unit
11.16
unit
Rs. Lakh
Rs. Lakh

year

1
0.89
30.96
1.59
33.44
4.42

2
0.94
30.96
1.69
33.58
4.44

3
0.99
30.96
1.78
33.73
4.46

4
1.05
30.96
1.88
33.89
4.48

5
1.11
30.96
1.99
34.06
4.51

6
1.17
30.96
2.11
34.23
4.53

7
1.24
30.96
2.23
34.42
4.55

8
1.31
30.96
2.35
34.62
4.58

9
1.38
30.96
2.49
34.83
4.61

10
1.46
30.96
2.63
35.05
4.64

11
1.54
30.96
2.78
35.28
4.67

12
1.63
30.96
2.94
35.53
4.70

13
1.73
30.96
3.11
35.79
4.74

14
1.83
30.96
3.29
36.07
4.77

15
1.93
30.96
3.47
36.36
4.81

16
2.04
30.96
3.67
36.67
4.85

17
2.16
30.96
3.88
37.00
4.89

18
2.28
30.96
4.10
37.34
4.94

19
2.41
30.96
4.34
37.71
4.99

20
2.55
30.96
4.59
38.09
5.04

21
2.69
30.96
4.85
38.50
5.09

22
2.85
30.96
5.13
38.93
5.15

23
3.01
30.96
5.42
39.39
5.21

24
3.18
30.96
5.73
39.87
5.28

25
3.37
30.96
6.06
40.38
5.34

total debt
annual premium

Rs.lakh
Rs.lakh

700
132.7883

Interest on term loan

interest
principle paid
principle left

Rs.lakh
Rs.lakh
Rs.lakh
Rs.lakh

Year

CRF(13.73%,10)

1
96.11
36.68
663.32

2
91.07
41.71
621.61

0.189698

3
85.35
47.44
574.17

4
78.83
53.96
520.21

5
71.42
61.36
458.85

6
63.00
69.79
389.06

7
53.42
79.37
309.69

8
42.52
90.27
219.42

9
30.13
102.66
116.76

10
16.03
116.76
0.00

determination of accelarated depreciation benefits for solar PV power project

depreciation amount
book depreciation rate
tax depriciation rate
income tax (normal rates)
capital cost

Book depreciation

90%
5.28%
80%
32.445%
1000

unit
%
Rs. Lakh

year

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25