Beruflich Dokumente
Kultur Dokumente
ON
PROJECT APPRAISIAL AND FINANCIAL
MODELLING
IN
“PARSON POWER PROJECT LTD”
SUBMITTED BY :- SUBMITTED TO :-
NAVEEN GUPTA CMA MAMTA SHAH
I offer my sincere thanks and humble regards to GURU NANAK INSTITUTE OF MANAGEMENT,
GGSIP University, and New Delhi for imparting us very valuable PGDM (FINANCE).
I pay my gratitude and sincere regards to “CMA MAMTA SHAH”, my project Guide for giving me the
cream of her knowledge. I am thankful to her as she has been a constant source of advice, motivation
and inspiration. I am also thankful to her for giving her suggestions and encouragement throughout the
project work.
I take the opportunity to express my gratitude and thanks to our computer Lab staff and library staff for
providing me opportunity to utilize their resources for the completion of the project.
I have furthermore to thank the director of “PARSON POWER PROJECT LTD” for giving me the
opportunity to get the experience to work in the corporate world and get some work knowledge while
guiding me throughout.
I am also thankful to my family and friends for constantly motivating me to complete the project and
providing me an environment which enhanced my knowledge.
This is to certify that I have completed the Project titled “PROJECT APPRAISIAL AND
FINANCIAL MODELLING” under the guidance of “CMA MAMTA SHAH” in the partial
fulfillment of the requirement for the award of the degree of “POST GRADUATION
DIPLOMA IN MANGEMENT” from “GURU NANAK INSTITUTE OF
MANAGEMENT STUDIES, New Delhi.”
NAVEEN GUPTA
PGDM (FINANCE)
EXECUTIVE SUMMARY
Rapid economic growth has increased the burden of India’s infrastructure, one of the
country’s week spots. An infrastructure deficit is widely considered to be one of the
factors that could severely affect the economic growth of the country. In the past few
years, policy makers have recognized the importance of infrastructure in economic
growth and have made concrete efforts to accelerate infrastructure development.
Power Sector continues to lag behind despite the introduction of progressive measures.
Power shortages, increased tariffs, shortage of coal and dependence on imported fuel are
on rise, while the poor health of the distribution continues to inhibit the inflows of
investments which have possessed growth risk for the Indian Electricity Sector.
India's demand for electricity is likely to cross 300 GW, in few years earlier than most
estimates. Meeting this demand will require a fivefold to tenfold increase in the pace of
capacity addition.
With the growing demand of power, there is huge potential of investment in power
sector of India. The power sector which is in the concurrent list of the Indian
Constitution is under the purview of both the central government and the state
government. The power sector which was earlier dominated by public sector undertaking
is now seeing effective participation of the private sector which is now accountable for
28% of power generation in the country.
Power Finance Corporation Ltd. (PFC) a public financial institution established In 1986
by the Ministry Of Power as a Financial Institution (FI) to provide financing solution to
large capital intensive power project across India including generation, transmission,
distribution and RM&U projects.
My Summer Internship Project is “Project & Entity Appraisal of Thermal Power Plant”.
It resolves around the appraisal of the power project promoted by the company ABC
Power Limited, which has come for financial assistance of its Capital Expenditure and
Working Capital Requirements. The project is being appraised after evaluating it on the
various parameters set by Central Electricity Regulatory Commission (CERC) and the
set parameters at PFC.
My work also include appraisal of Promoters of the project which is based on set
parameters at PFC .The aim of the appraisal is to finally arrive at the decision: whether
PFC should finance the project or not.
As per the guidelines of PFC the project is evaluated into two parts: Project Appraisal
and Entity Appraisal. The format of the project report will be in the form of Agenda Note
as per PFC norms.
“Project Appraisal” is carried out by “Project Appraisal Department” which evaluates the
financial and technical viability of the project.
iii
“Entity Appraisal” is carried out by “Entity Appraisal Department” and involves
evaluation of the promoter of the company on its financial flexibility and stability, the
analysis of their business operations and the competence of the management.
In the end the project involves the subjective analysis on both Project & Entity fronts and
come up with the risk involved.
The project reports ends with the Recommendations on whether to finance the project or
not.
iv
LIST OF ABBREVIATIONS
BU Billion Units
Go Government of India
KV Kilo Volts
v
LIST OF FIGURES
vi
LIST OF TABLES
vii
TABLE OF CONTENTS
DECLARATION ........................................................................................................... i
ACKNOWLEDGEMENT ............................................................................................ ii
EXECUTIVE SUMMARY… ..................................................................................... iii
LIST OF ABBREVIATIONS… ...................................................................................v
LIST OF FIGURES… ................................................................................................. vi
LIST OF TABLES… .................................................................................................. vii
BIBILIOGRAPHY .................................................................................................... 54
ANNEXURE ..............................................................................................................55
ix
CHAPTER 1: INTRODUCTION
Electricity is one of the most vital infrastructure inputs for economic development of a
country. The demand of electricity in India is enormous and is growing steadily. The vast
Indian electricity market, today offers one of the highest growth opportunities for private
developers.
At the time of independence in 1947, the country had a power generating capacity of
1,362 MW. Prior to independence the power sector was regulated by “The Indian
Electricity Act, 1910” which was the first basic legal framework for the electricity sector
in the country. “Supply of energy” was the main concept around which various
provisions were woven. The act talked about the License for generating and supplying
electricity, Competition in generation and supply areas, Framework of wires and works,
Licensee and Consumer relationship, Safety Measures and Theft of electricity in the
power sector.
Post-independence our priorities changed, the supply of electricity which was limited to
cities and towns was to be spread across the country, especially in rural areas. This was
seen as a social responsibility of the Government to provide electricity to all. Thus “The
Electricity Supply Act, 1948” was passed in the Central legislature to facilitate the
establishment of regional co-ordination in the development of electricity which
envisaged formation of State Electricity Boards (SEB) as an arm of State Government to
discharge their responsibility of providing electricity to all. The act mandated that every
State shall constitute a SEB. SEB’s were entrusted with the task of developing power
generation, transmission as well as distribution facilities. The Act also called for
formation of Central Electricity Authority (CEA), which was envisaged as the main
technical arm of the Central Government. It also had to perform the role of technical
advisor to the State Government, SEB, Generation Company or any other agency and
form regulations on certain aspects of which the most important was the techno-
economic clearance of generation projects.
Under the 1910 and 1948 Acts, powers of regulation including tariff regulations were
vested on the Government. This concentration of power in the Government and
Government organizations resulted in inefficiencies of various sorts, the most prominent
manifestation was being lack of rational and professional approach to tariff fixation. As
part of reforms strategy, it was, therefore, considered necessary to distance the sensitive
aspect of tariff regulation from the political executives on the independent Regulatory
Commissions. Thus, Government brought in “The Electricity Regulatory Commissions
(ERC) act, 1998” which was the first step taken by the government to move itself away
from the regulatory aspect of the power sector and fixation of tariff for the energy being
used by the consumer. By this act the various losses occurring at the SEBs level and the
bottleneck caused due to bureaucracy prevalent in the government organizations and
political interference were tried to minimize by formation of Central Electricity
Regulatory Commissions (CERC) at central level and State Electricity Regulatory
Commissions (SERC) at every state. The CERC and SERC had main responsibility of
tariff determination for Central Government and State Government owned generating
stations respectively.
Bullish economic growth story of any country depends on a robust power generation &
delivery model.
Competition with regulatory oversight is the framework around which the Electricity
Act, 2003 is woven - competition to encourage efficiency in performance and regulatory
oversight, to safeguard consumer’s interest and at the same time ensure recovery of costs
for the investors. The journey of distancing of Government from regulations that started
in 1998 has culminated in The Electricity Act of 2003. According to the new law the
In pursuance of the provisions of the Electricity Act, 2003 the Central Government came
out with National Electricity Policy on 6th February 2005.
In pursuance with section 3 of the Electricity Act 2003, the Central Government notified
the Tariff Policy on 6th January 2006. According to the Act, the CERC and SERCs are to
be guided by the Tariff Policy in framing its regulations.
Electricity has been recognized as a basic human need. It is the key to accelerating
Economic growth, generation of employment, Eliminatio Of poverty and human
n
Development especially in rural areas. The Rural Electrification Policy was notified in
August 2006, with the objective of improving access and quality of electricity supply in
rural areas so as to ensure rapid economic development by providing electricity as an
input for productive uses in agriculture, rural industries etc. For this the Central
government has launched in April, 2005 an ambitious scheme ‘Rajiv Gandhi Grameen
Vidhyutikaran Yojana (RGGVY) aimed to establish
Subsidy towards capital expenditure to the tune of 90% is channelized through REC,
which is a nodal agency for implementation of the scheme. Electrification of un-
electrified Below Poverty Line (BPL) households is financed with 100% capital subsidy
@ 1500/- per connection in all rural habitations. The Management of Rural Distrib tion
is undertaken through franchisees. A three-tier quality monitoring has been built into the
scheme. RGGVY has thu resulted in huge investments in providing electricity
connections in rural India.
Source: powermin.gov.in
4|P a ge
Pro ject Apprais al & Financia l Modeling
1.3 INTRODUCTION TO INDIAN POWER SECTOR
Electricity is one of the most vital infrastructure inputs for economic development of a
country. The demand of electricity in India is enormous and is growing steadily. The vast
Indian electricity market, today offers one of the highest growth opportunities for private
developers.
Since independence, the Indian electricity sector has grown many folds in size and
capacity. The generating capacity has increased from a meagre 1,362 MW in 1947 to
more than 225,113 MW by May 2013, a gain of almost 200 times in capacity addition.
India's per capita energy consumption is 778kWh in 2011 -- a rise of almost 400 percent
since 1980. Although, India's energy consumption per unit of output is still rising, but it
is expected to level off and to decline in the future. India consumes two-thirds more
energy per dollar of gross domestic product (GDP) as the world average. India consumes
only about 18 percent of the energy per person as the world average. Over 65 per cent of
India's electricity is produced in thermal facilities using coal or petroleum products.
Almost 19 per cent electricity is generated by hydroelectric facilities. In its quest for
increasing availability of electricity, the country has adopted a blend of thermal, hydro
and nuclear sources. Out of these, coal based thermal power plants and in some regions,
hydro power plants have been the mainstay of electricity generation. Of late, emphasis is
also being laid on non-conventional energy sources i.e. solar, wind and tidal which
constitutes about 12 percent of the total energy generation.
Source: wikipedia.org
India is one of the main manufacturers and users of energy. Globally, India is presently
positioned as the fifth largest manufacturer of energy, representing roughly 2.4% of the
overall energy output per annum. It is also the world’s fifth largest energy user,
comprising about 3.3% of the overall global energy expenditure per year. In spite of its
All the Regions in the Country namely Northern, Western, Southern, Eastern and North-
Eastern regions continued to experience energy as well as peak power shortage of
varying magnitude on an overall basis, although there were short-term surpluses
depending on the season or time of day. The energy shortage varied from 19.1% in the
Southern Region to 1.2% in the Western Region. As per CEA’s forecast for 2013-2014
among the regions, only the Eastern region would have a surplus of 10.2%. Region-wise
picture in regard to actual power supply position in the country during the year 2013 -14
is given below:
In the past, the power sector growth has not kept pace with the economic expansion and
this has resulted in India experiencing a 13 per cent shortage in peak capacity and 8 per
cent in energy terms, on an overall basis. Driven by the requirement to enhance the
budgetary allocations to social sectors to meet the emerging requirements of sustainable
growth, the Government has envisaged a manifold increase in the role of the private
sector in the financing and operations of the power sector. Significant structural and
regulatory reforms have paved the way for increased private sector participation in all
aspects of the sector. Many of the legal and regulatory requirements to enable this are in
place, while the operational provisions are in different stages of implementation in
different states.
200000
150000
100000
50000
4780
0
Thermal Nuclear Hydro RES Total Captive
Source: powermin.gov.in
India saw a total capacity addition of approximately 54,000 MW during the 11th Five
Year plan, of which approximately 47 per cent was contributed by the central
government, 34 per cent from the state government, and a little over 19 per cent from the
private sector. As per the Planning Commission report capacity addition of 88000MW is
estimated in 12th five year plan. Some examples of top public sector companies include
National Thermal Power Corporation (NTPC), Damodar Valley Corporation (DVC) and
National Hydroelectric Power Corporation (NHPC). Some key companies in the private
sector include Tata Power and Reliance Energy Limited. In India, power is primarily
generated from thermal and nuclear fuels, hydro energy and renewable sources.
India’s power generation capacity has significantly increased since 2008, and is also
expected to show a strong growth in the future. However, India faced a power deficit of
approximately 8.5 per cent and a peak demand deficit of over 10 per cent in FY11
primarily due to fuel shortage. This shortage can be attributed to aggregate technical and
commercial (AT&C) losses, which is about 30 per cent with a high variance across
various utilities. Therefore, it is essential for the government to work proactively to
increase the sector’s generation capacity in a sustainable manner by addressing key
To cope with the demand deficit, the Indian government has implemented various
progressive measures to maximise the country’s power generation capacity and improve
distribution. Some examples of such measures include rural electrification programmes
and ultra mega power projects. In particular, the inflow of foreign direct investments is
expected to step up capacity addition significantly. The government has allowed FDI of
up to 100 per cent through the automatic route in all segments of the power sector except
for nuclear energy. Consequently, the sector has drawn about US$ 4.6 billion investment
over the past decade, of which US$ 1.6 billion came in FY12 alone.
Hence, we can comfortably say that the Indian power sector has strong future growth
prospects. Consequently, we need to assess the various policy initiatives that have had a
positive impact on the sector, and capitalise upon them further to ensure a strong future
growth.
(i) Inadequate supply of domestic coal and unanticipated increase in prices of imported
coal.
(ii) Difficulties with clearances for captive mines, as well as for generating stations.
(iii) Land availability
(iv) Poor financial health of some state electricity distribution companies which are the
main customers and which suffer from insufficient tariff adjustment plus
inefficiencies in collection.
(v) Inadequate availability of domestic natural gas.
(vi) Inadequate fuel supply agreements for coal.
(vii) More recently, difficulties in obtaining finance from both external and domestic
sources.
1.6 INITIATIVES
PPP IN POWER
To attract private sector participation, government has permitted the private sector to set
up coal, gas or liquid-based thermal, hydel, wind or solar projects with foreign equity
participation up to 100 per cent under the automatic route. The government has also
launched Ultra Mega Power Projects (UMPPs) with an initial capacity of 4,000 MW to
attract 160–200 billion of private investment. Out of the total nine UMPPs, four UMPPs
at Mundra (Gujarat), Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh) and
Tilaiya Dam (Jharkhand) have already been awarded. The remaining five UMPPs,
Project Appraisal & Financial Modeling 8|Pa ge
namely in Sundergarh District (Orissa), Cheyyur (Tamil Nadu), Girye (Maharashtra),
Tadri (Karnataka) and Akaltara (Chattisgarh) are yet to be awarded. To create
Transmission Super Highways, the government has allowed private sector participation
in the transmission sector. A PPP project at Jhajjar in Haryana for transmission of
electricity was awarded under the PPP mode. Further, to enable private participation in
distribution of electricity, especially by way of PPP, a model framework is being
developed by the Planning Commission.
ADVANCED TECHNOLOGIES
It has already been announced that 50 per cent of the Twelfth Plan target and the coal-
based capacity addition in the Thirteenth Plan would be through super-critical units,
which reduce the use of coal per unit of electricity produced. Supercritical (SC) power
plants, which operate at steam conditions 560oC/250 bars, can achieve a heat rate of
2,235 kCal/kWh as against a heat rate of 2,450 kCal/kWh for sub-critical power plants.
The specific CO2 emission for super-critical plants is 0.83 kg/ kWh as against 0.93
kg/kWh for sub-critical plants. Super-critical technology is now mature and is only
marginally more expensive than sub-critical power plants. Determined efforts are needed
to achieve these results, and prioritisation of coal linkages will be necessary to
incentivise adoption of super-critical technology.
1.7 OPPORTUNITIES
1. Long-term health of power sector seriously undermined (losses Rs 70,000 crore per
year). However, aggregate technical and commercial (AT&C) losses are slowly
coming down. State Governments must push distribution reform.
4. Given limited connectivity of NER with other parts of the country (through Siliguri
corridor), access through Bangladesh needs to be explored.
5. Electricity tariffs not being revised to reflect rising costs. Regulators are being held
back from allowing justified tariff increases.
2.1 BACKGROUND
PFC was established in July 1986 as a Development Public Financial Institution (PFI)
under Section 4A of the Companies Act, 1956. It is dedicated to the Power Sector. It is a
wholly owned by Government of India. A Nav-Ratna public Sector Undertaking. It has
highest safety ratings from domestic and international credit rating agencies and
also ISO 9001-2000 Certification for the Project Appraisal System.
PFC provides financial assistance to all types of power projects like Generation,
R&M, Transmission, Distribution, system improvement, etc. PFC encourages optimal
growth and balance development of all segments of power sector through assigning
priorities for financing different categories of projects. The state sector utilities are the
main beneficiary of PFC’s financial assistance. PFC has also been funding private sector
projects for last 5-6 years.
2.2 MISSION
PFC's mission is to excel as a pivotal developmental financial institution in the power
sector committed to the integrated development of the power and associated sectors by
channelling the resources and providing financial, technological and managerial services
for ensuring the development of economic, reliable and efficient systems and
institutions.
* Consistently rated ‘Excellent’ for its overall performance against the targets set in
Memorandum of Understanding (MoU) by the Government of India (GoI) since 1993-94.
* Nav-Ratna Public Sector Undertaking.
* Ranked among the top 10 PSUs for the last four years.
Placed at the highest safety ratings by accredited rating agencies in India - CRISIL and
ICRA
Domestic borrowings include term loans and bonds; External borrowings take the form
of Syndicated Loans, Fixed & Floating Notes.
Consistently rated ‘Excellent’ by the Government of India (GOI) for overall performance
against the targets set in Memorandum of Understanding (MoU) between GOI and PFC.
To rise the resources from international and domestic sources at the competitive
rates and terms and conditions and on-ward lend these funds on optimum basis to
the power projects in India.
To assist state power sector in carrying out reforms and to support the state power
sector during transitional period of reforms
Municipal Bodies
Fund Based
Bridge Loan
Lease Financing
Bill Discounting
Guarantees
Reform Group const tuted in PFC to advice and assists the State Govt. /Power
Utilities to formulate suitable restructuring programmes.
Weaknesses
Poor asset quality with most of the lending to SEBs, whose loan repayment
capabilities in the long run is doubtful.
Opportunities
Having new business opportunities to cover the entire range of activities in the
Power sector.
Threats
PFC has significant exposures entities which are loss making, financially
weak an dare defaulting to most of their creditors. Delinquencies by these
entities to PFC could impair the currently sound Balance Sheet of PFC.
With increasing exposure to SEB’s, their weak balance sheet may affect PFC’s
creditworthiness.
1. Finding out the factors affecting a project’s capital and operational expenditure
which in turn have an impact on the cash outlay and revenue flow of the project and
their study. Thus, performing Project Appraisal of a 660 MW Coal Based Super-
critical Thermal Power Project.
3. To find out probable values of IRR, DSCR among other ratios using the financial
model to study the feasibility and attractiveness of a 660 MW Coal Based Super-
critical Thermal Project.
3.2 SCOPE
Scope of project covers installation, commissioning, operation and maintenance of 660
MW coal fired Thermal Power Plant and associated systems.
Indian power sector wants to ramp up the installed capacity to meet the growing demand.
Large Power Projects enjoy economics of scale and help in lowering the tariff of supply.
This project helps to find out the factors that will affect the project cost and thus have an
impact on total investment and operational expenses of the project. The assessment and
analysis of these factors will help in determining the project cost, the associated risks and
ultimately the tariff for supply from the project and thus the revenue and cash flows.
Such information is vital in making financial decisions and project appraisal. The study
may also help in understanding of ways to mitigate the risks.
W Wetekamp [2011] suggests how Net Present Value (NPV) can be used as a proper
tool to ensure effective project management. The author proves that investment project's
appraisal methods, such as e.g. NPV, can and should be used as an ongoing monitor of
project health. What is more, even in case of project turbulences Net Present Value can
be used as a key instrument for finding the most appropriate solutions.
Robert Lundmark et al [2012] analyzed how market and policy uncertainties affect the
general profitability of new investments in the power sector, and investigate the
associated investment timing and technology choices. They developed an economic
model for new investments in three competing energy technologies in the Swedish
electric power sector. The model takes into account the policy impacts of the EU ETS
and the Swedish green certificate scheme. By simulating and modeling policy effects
through stochastic prices the results suggest that bio-fuelled power is the most profitable
technology choice in the presence of existing policy instruments and under our
assumptions. The likelihood of choosing gas power increases over time at the expense of
wind power due to the relative capital requirement per unit of output for these
technologies. Overall the results indicate that the economic incentives to postpone
investments into the future are significant.
Reports of similar projects for thermal power plants were also reviewed. The reports of
previous batches on similar topic and the referenced data were helpful in determining
data for this project. The literature available within the company helped a lot in
understanding Project Finance and factors of project cost which are summarized as:
Project financing discipline includes understanding the rationale for project financing,
how to prepare the financial plan, assess the risks, design the financing mix, and raise the
funds. In addition, one must understand the cogent analyses of why some project
financing plans have succeeded while others have failed. A knowledge base is required
regarding the design of contractual arrangements to support project financing; issues for
the host government legislative provisions, public/private infrastructure partnerships,
public/private financing structures; credit requirements of lenders, and how to determine
the project's borrowing capacity; how to analyze cash flow projections and use them to
measure expected rates of return; tax and accounting considerations; and analytical
techniques to validate the project's feasibility.
Project finance is different from traditional forms of finance because the credit risk
associated with the borrower is not as important as in an ordinary loan transaction rather
the identification, analysis, allocation and management of every risk associated with the
project is given more importance.
Project finance is the financing of long term infrastructure and industrial projects based
upon a complex financial structure where project debt and equity are used to finance the
project. Usually, a project financing scheme involves a number of equity investors,
known as sponsors. As well as a syndicate of banks which provide loans to the
operations. The loans are most commonly non-recourse loans, which are secured by the
project itself and paid entirely from its cash flow, rather than from the general assets or
creditworthiness of the project sponsors. The financing is typically secured by all of the
project assets, including the revenue-producing contracts. Project lenders are given a lien
on all of these assets, and are able to assume control of a project if the project company
has difficulties complying with the loan terms.
Generally, a special purpose entity is created for each project, thereby shielding other
assets owned by a project sponsor from the detrimental effects of a project failure. As a
special purpose entity, the project company has no assets other than the project. Capital
contribution commitments by the owners of the project company are sometimes
necessary to ensure that the project is financially sound. Project finance is often more
complicated than alternative financing methods. It is most commonly used in the mining,
transportation, telecommunication and public utility industries.
Equity Debt
Sponser(s) Lenders
Dividend Debt Service
Equipment Provider
Construction Power Purchaser
Connections Contracts
Electricity
Deliveries
Licenses
Civil Works Certification
Obligation to
buy electricity
Regulatory Authorities
Zoning Local Tariff for such
Permits electricity
Risk identification and allocation is a key component of project finance. A project may
be subject to a number of technical, environmental, economic and political risks,
particularly in developing countries and emerging markets. Financial institutions and
project sponsors may conclude that the risks inherent in project development and
operation are unacceptable (unfinanced able). To cope with these risks, project sponsors
in these industries (such as power plants or railway lines) are generally completed by a
number of specialist companies operating in a contractual network with each other that
allocates risk in a way that allows financing to take place. The various patterns of
implementation are sometimes referred to as "project delivery methods." The financing
of these projects must also be distributed among multiple parties, so as to distribute the
risk associated with the project while simultaneously ensuring profits for each party
involved.
Financial feasibility: One of the very important factors that a project team should
meticulously prepare is the financial viability of the entire project. This involves the
preparation of cost estimates, means of financing, financial institutions, financial
projections, break-even point, ratio analysis etc. The cost of project includes the land and
sight development, building, plant and machinery, technical know-how fees,
preoperative expenses, contingency expenses etc. The means of finance includes the
share capital, term loan, special capital assistance, investment subsidy, margin money
loan etc. The financial projections include the profitability estimates, cash flow and
projected balance sheet. The ratio analysis will be made on debt equity ratio and current
ratio.
Commercial Appraisal: In the commercial appraisal many factors are coming. The
scope of the project in market or the beneficiaries, customer friendly process and
preferences, future demand of the supply, effectiveness of the selling arrangement, latest
information availability an all areas, government control measures, etc. The appraisal
involves the assessment of the current market scenario, which enables the project to get
adequate demand. Estimation, distribution and advertisement scenario also to be here
considered into.
Economic Appraisal: How far the project contributes to the development of the sector;
industrial development, social development, maximizing the growth of employment, etc.
are kept in view while evaluating the economic feasibility of the project.
Annual Fixed Cost: The annual fixed cost (AFC) of a generating station or a
transmission system shall consist of the following components
Return on equity: 15.5% tax free return on total equity. Only 30% of the project
cost can be treated as equity.
Project Appraisal: To evaluate the project rating and conducting the feasibility report of
a project based on the DPR/information memorandum/application form and other related
materials submitted by the borrower.
Assesses the capital needs of the business project and how these needs will be
met.
Entity Appraisal: To assess the financial health of organizations that approach PFC for
credit for power projects. This would entail undertaking of the following procedures:
5.1.3. COST ESTIMATE: The base date for estimation of cost shall not be more than
six month old at the time of talking up the project for appraisal. Physical contingencies
and the price contingencies shall be made depending on the project completion period of
1,2,3,4 and 5 years as per PFC guidelines. Also IDC, to be considered to arrive at project
cost.
5.1.5. PROJECT ANALYSIS: The project is evaluated on various parameters and then
ranked according to the PFC guidelines. The method is explained later on.
PRELIMINARY APPRAISAL
I. BUSINESS ANALYSIS
Business analysis evaluates the performance of the present business of the promoters.
The analysis involves evaluation of the market position and financial position of the
company along with a view on management expertise and integrity of the promoters. The
parameters and factors used in business analysis have been enumerated below:
a) Market Position
Here relative market share of the company is determined. It is calculated as the ratio
of the turnover of the promoting company divided by the turnover of the market
leader in the business. In case of diversified companies the same process is repeated
for each division.
b) Financial Risk
It evaluates the past financial performance of the promoting companies. Performance
of at least the last three years is evaluated. Financial risk parameter is represented by 5
ratios, which cover various aspects of company’s financial performance:
Operating Margin
OM = Operating Profit before Depreciation, Interest and Taxes/ Income from
operations
It is used to judge the ability of promoters to financially manage the project. Thus, key
points evaluated are:
Ability to contribute equity to the project
Ability to bring the project to financial closure
Ability to fund temporarily funding mismatches
Aggregate Project Cost: This factor evaluates the ability of the promoters to
manage new project. Scoring is done by comparing the aggregate cost of the
project implemented by the promoting group in the last years as a proportion of
the cost of the present projects with the benchmark, to arrive at a score.
DETAILED APPRAISAL
It involves Qualitative Analysis of Promoter Company. The scoring of all the factors is
on a four-point scale. The factors are judgmental and the model provides broad
guidelines for the evaluation for the same. It involves analysis under two categories
parameters for Detailed Evaluation:
Management risk
Management past experience
I. MANAGEMENT RISK
It evaluates two factors:
Quantitative Parameters
Qualitative Parameters
SCOPE
Scope of this project covers installation, commissioning, operation and maintenance of
660 MW with Super critical & Pulverised Coal fired boiler and associated systems.
6.2.1 LOCATION
The location of the proposed plant is in Tamil Nadu. The project site is located at a
distance of about 14 kms from the National High way and 15 kms from Trichendur town.
The site elevation is +12 m above mean sea level. The site terrain is generally plain
requiring minimum efforts to grade them suitable for construction of the project.
The site was selected considering the followings:
There is no cultivation in the project site and rehabilitation of resident population from
the project site does not arise. Around the project site there is no reserve forest within 15
Km radius.
6.2.2 LAND
The project is being implemented in Tamil Nadu. The company has already acquired 600
acres of land and site development works will commence shortly. The land is currently
not in use and there are no inhabitants requiring rehabilitation or resettlement.
Colony 10
Others 100
Total 600
The site identified for the Project is generally plain requiring minimum efforts to grade
them suitable for construction of the project. . Around the project site there is no reserve
forest within 15 Km radius. The Company has paid Rs. 50 Crore towards allotment of
land and development works.
The Company proposes to use the allotted land for setting up Main Power Plant, colony
and Ash Dyke requiring about 400 acres. The remaining allotted land, about 100 acres,
would be used for Green Belt development. The balance land of about 100 acres would
be acquired by the Company in due course. The site development for the Proposed
Project site, covering levelling, boundary wall, internal and approach roads and other
miscellaneous requirements, is estimated to cost about Rs. 20 Crore.
6.2.3 WATER
The requirement of water for the plant will be for meeting the requirement of make up
for the water system, dust suppression system in coal handling plants, ash disposal
Project Appraisal & Financial Modeling 30 | P a g e
system and the D.M. water plant which will be supplying the power cycle make up
requirements. In addition the water requirements will be for drinking and service
purposes.
The total requirement of water for the plant will be around 150 m³/hr for the project.
Total 150
ABC Ltd. has made an agreement of minimum SG portable water supply of 4000m3/day
of SG portable water by SG. A raw water reservoir of 25200m3 capacity to hold 7 days
requirement for plant requirement of water will be constructed at the plant site. Air
cooled condenser for turbine is proposed. Water drawl approval has been obtained by the
company.
The basic features of the sweet water system and auxiliary cooling water for the
proposed station will be proposed to buy from prospective water suppliers. Air cooled
condenser is proposed for condensing steam. At the Plant, a water reservoir will be
installed to meet 7 days requirement of the plant.
The overall cost of water arrangement as estimated by the Company is about Rs. 90
Crore and has been considered in the Project cost.
The Proposed Project is based on Super Critical Boiler Technology instead of more
prevalent Sub-Critical Boiler Technology in India. The basic difference between the two
technologies is the steam pressure at which the boiler is operated. In case of Sub Critical
Technology the operating pressure in boiler is less than 19 MPa as against 24 MPa in
typical subcritical power plant. The supercritical power plant can achieve considerably
higher cycle efficiencies with resulting savings in fuel costs and reductions in CO2 and
other emissions.
Plant costs are comparable for both the technologies. However, overall economics for
super critical technology are more favorable because of the increase in cycle efficiency.
Economic performance is also influenced by other factors, including plant availability,
flexibility of operation and auxiliary power consumption. The once-through boiler
design used in super critical technology based plants is inherently more flexible than
drum designs used in subcritical technology based plant, due to fewer thick section
components allowing increased load change rates. Typical average availability of super
Project Appraisal & Financial Modeling 31 | P a g e
critical technology based power plants is about 85%. However, with appropriate design
and materials, a plant availability of >90% is achievable. Efficiencies of supercritical
power generation are also less affected by part load operation, with efficiency reductions
less than half those experienced in subcritical plant.
The major environmental benefit of supercritical power generation is from reduced coal
consumption per unit of electricity generated, leading to lower CO2 and other emissions.
CO2 emissions for supercritical plant would be 17% lower than for a typical subcritical
plant. Similarly, all other emissions e.g. NOx and SOx, would also be reduced pro-rata
with the reduction in coal consumption.
The lower CO2 emissions from super critical plants are quantifiable and the project can
be registered as a CDM project for accruing CERs which can be traded with international
markets. This can potentially work as an additional revenue stream for the project.
6.2.5 TECHNOLOGY
Thermodynamic cycle
Thermodynamic reheat cycle. The thermodynamic reheat cycle consists of steam
generator, steam turbine generator with condenser, the Condensate extraction and boiler
feed pumps along with H.P & L.P feed water heaters & deaerator.
Supercritical Boilers
Different boiler technology is used which is the critical requirement in the adoption of
supercritical pressure and temperature. With supercritical pressure boiler need to increase
the wall thickness of the pressure components and also use advanced materials for its
effective working.
The primary fuel for the Proposed Project would be domestic coal. The Company
proposes to use coal available from CIL mines.
Coal India Limited has made a LoA with the company for use of coal in the Proposed
Project. The Company has approved the agreement. The average calorific value of the
coal is expected to be about 3400 kcal/kg. Considering this Gross Calorific Value and
PLF of 85% the coal requirement of the Project works out to be about 3771700 TPA.
The Company has estimated the capital investment of Rs. 900 per tonne at an escalation
of 5% p.a and the same has been incorporated in the overall Project Cost.
HFO, which is the secondary fuel for pulverized coal, will be used for flame stabilisation
at low loads and for supporting purposes. Heavy fuel oil will be supplied from oil depot
by means of truck. Two HFO storage tanks each of capacity 1000m³ with necessary
heating arrangement within the tank will be provided. The estimated maximum annual
requirement of HFO is 4914 KL. Capital investment of Rs 50 per kg at an escalation of
4% p.a has been estimated.
LDO system will be designed for 7.5 % of BMCR, which will be considered sufficient to
introduce heavier grade fuel. The light diesel oil will have provision for supply to the
steam generator for startup purpose. The estimated maximum annual requirement of
LDO is 1000 KL.
Coal will be transported from the Indian Coal fields to the Paradeep Port by Rail and
from the port to the Manappadu Port located near to the project site by ship. Coal
unloaded from ship will be stored in a separate coal yard to be set up by prospective Coal
sellers at Manappadu port and coal will be supplied at the plant boundary by conveyors.
Calorific value of Indian F grade coal will be in the range of 3400 kcal/kg. Rail route
already exists upto Tiruchendur. About 12 km of rail route from Tiruchendur to project
site is under approval. For transportation of coal, the Company would enter into Coal
Transportation Arrangement (CTA) with the Indian Railways.
Due to the availability of port facilities for transportation of coal from the mines, it is
convenient and economical to unload and transport the coal to the plant. Coal will be
also be transported from the port to the Manappadu Port located near to the project site
by ship. Alternatively trucks will also be used for coal transfer from port to plant.
Company has made a logistic agreement with Aspinwall Co Ltd for transportation of
coal from port and railway station to the plant.
Under an EPC contract, the contractor designs the installation, procures the necessary
materials and builds the project, either directly or by subcontracting part of the work.
EPC contract for this project is been given to Consolidated Construction Consortium
Ltd. It is proposed to entrust the entire work of project execution covering all civil
works, electrical and mechanical systems to a single EPC (Engineering, Procurement and
Construction) Contractor who will take overall responsibility for timely project
execution and plant performance and provide guarantees for the same.
SCOPE
The contractor agrees to provide all civil and structural works including supplies
of cement, reinforcement steel and structural steel etc.
The lump sum amount of Rs 524 crore represents the lump sum fixed price towards the
services to be provided by the contractor, pursuant to the scope of work under this
Agreement. The contractor shall complete all the works as per project schedule approved
by owner, pursuant to various conditions of this agreement, within 30 months from the
start of project commencement date.
O&M Contractor’s general manager would have primary responsibility for the operation
& maintenance of the power station. O&M Contractor’s site organisation is expected to
comprise four broad functional areas viz. operations, maintenance, engineering and
administration.
Operation of Power Plant, coal and ash handling systems, water systems including water
treatment system, switchyard and other auxiliary plant. Operations manager would be
overall in charge of operations, all other operation personnel would work on three - shift
basis. Shift personnel manpower planning for key areas has been generally done on
(3+1) concept to take into account leave taken by shift personnel.
Maintenance of all mechanical and electrical plant, control systems, buildings, roads,
drainage and sewage systems, etc., operation of the plant workshop, planning for
scheduled maintenance works and deciding requirement of spare parts.
The O&M team of the power station would be headed by a Senior Vice President, under
whom separate groups viz. Operation, Mechanical, Electrical, Civil and C&I
maintenance would operate. In addition to these groups, operation and efficiency
improvement group and maintenance planning group would monitor the efficiency in
operations and maintenance management respectively and suggest continual
improvements.
Construction Power
The company has received approval for drawl of construction power from nearby
substation of Tamil Nadu Power Distribution Company Ltd. (TNPDCL).
Construction Water
The total water requirement for the project is 2000 m3/day. This water will be sourced
from nearby desalination plant. The requirement of construction water for potable and
service purposes will be met by the nearby desalination plant located within the allotted
land for the Project. The Company has taken over the desalination plant along with the
auxiliary and paid about Rs. 50 Crore for the same.
The power generated from the plant will be evacuated at 400 KV through PGCIL /
TNEB grid lines. Three / Four 400 KV transmission line circuits are proposed from
b) Two nos of 400kV bays each at Company’s switchyard & Tuticorin Pooling
POWERGRID station.
The cost of the transmission line is estimated by the Company is about Rs. 52 Crore.
The project site is located at a distance of about 14 kms from the National High way and
15 kms from Trichendur town. There is no cultivation in the project site and
rehabilitation of resident population from the project site does not arise. Around the
project site there is no reserve forest within 15 Km radius.
Since all necessary pollution control measures to maintain the emission levels of dust
particles and sulphur dioxide within the permissible limits would be taken and necessary
treatment of effluents would be carried out, there would be no adverse impact on either
air or water quality in and around the power station site on account of installation of the
proposed plant.
Sewage water from power plant and canteen will be collected in the Anaerobic
treatment pond and from there it will be sent to the clarifier. The treated water will be
used for horticulture purpose. The oily waste water will be treated in an Oily Water
Separator. The clear water is disposed through CEMS and the Oily Sludge is disposed
offsite.
By selecting a suitable furnace and burner for the steam Generator, NOx formation has
been avoided and no additional equipment for NOx control is required. Although there is
no statutory stipulation for regulation of NOx emission, the boiler will be designed for
maximum of 750 mg/Nm3 with provision of low NO burners. Dust nuisance due to Coal
handling would be minimised by providing suitable dust suppression/extraction systems
at crusher house, junction towers etc. For the coal stockyard, dust suppression system
would be provided. Boiler bunkers would be provided with ventilation system with bag
filters to trap the dust in the bunkers.
The above noise level at plant boundary during normal operation is ensured by proper
selection of the system. Controlled noise level from originating equipment and green
belts around the plant area. Project clearances received from statutory authorities, Tamil
Nadu State Pollution Control Board (TNPCB) and the concerned agencies of the
Government of Tamil Nadu and India.
Statutory Clearances
All statutory clearances requires at Central/State level for the implementation of the
project are to be ensured. Depending on the cost of project, techno economic clearances
of CEA/SEB may be asked.
Cost (Rs
Particulars Percentage
Crore)
Debt Equity Ratio 3.00
Inspite of 18,382 MW of installed capacity the state of Tamil Nadu is struggling to fulfil
its electricity demand. The electricity demand in the State had increased but the capacity
of the generating facilities had dropped due to inefficiencies resulting in shortfall. Most
of the districts in Tamil Nadu face power cuts lasting over six hours. Between April 2012
and February 2013, the energy and peak shortage of power in Tamil Nadu were 17.4 %
and 12.3 % respectively of the demand.
90000 12%
80000 11
10%
70000
60000 8%
50000
MU
6%
85685
80314
76705
76293
75101
40000
71568
69668
65780
64208
63954
60445
61499
30000 4%
53853
54194
47570
47872
20000
2%
10000
0 0%
FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012
Table 11: Power requirement and availability for year 2012-2013 for Tamil Nadu
Peak Peak Energy Energy Energy
Peak
Availabilit Deficit/Surp Requiremen Availabilit Deficit/S
Period Demand
y lus t y urplus
(MW)
(MW) (MW) (MU) (MU) (MW
Apr 12 12499 9841 -2658 7583 5817 -1766
May 12 11967 10182 -1785 6796 5840 -956
June 12 12296 11053 -1243 7868 6834 -1034
July 12 12269 10877 -1392 8043 7333 -710
Aug 12 12004 10566 -1438 7840 6763 -1077
Sep 12 12606 10348 -2258 7990 6606 -1384
Oct 12 12538 10269 -2269 8233 6574 -1659
Nov 12 11755 8306 -3449 7110 5254 -1856
Dec 12 12323 9409 -2914 7450 5831 -1619
Jan 13 12038 9698 -2340 7859 6668 -1191
Machinery 15%
Building 10%
After doing through study of the information Memorandum and all the contracts and the
agreements signed by ABC Ltd. the Financial Analysis is performed. Various parameters
that need to be calculated as a part of the financials of the project are:
DEBT PAYMENT
When the project is commissioned then the borrower company has to pay the interest on
the Term Loan. The interest rate used is the weighted average of Post COD Rates and
sub debt rates are specified by the leading Financial Institution (FI), which is also the
syndicator of the project.
The First Six months after the project commissioning is the Moratorium Period that is
during this period no principle repayment will be done but the interest will be charged
according to the Post COD Rates. After the Moratorium period the project has to pay
both the principle repayment and interest on the term loan.
(Sheet is attached in the Annexure V)
FUEL REQUIREMENT
The main objective of this part is to calculate the requirement of fuel for the project and
thus calculate overall cost of fuel required per annum for each of the next 25 years of
operation of the plant from the date of start of operations, which is assumed as the life of
the Thermal Power plant.
Here we first calculate the primary fuel cost and secondary fuel cost on yearly basis for
25 years depending upon the energy exported and GCV of the fuel that will be charged
to the project. While calculating the fuel cost we consider the Fuel Charges Escalation
(as mentioned in Power Purchase Agreement).For this we calculate the amount of units
that the project will be producing every year for 25 years. This is done on the basis of
installed capacity (MW) from the point the very first unit becomes operational to the
point 25 years ahead of the last commissioning of last unit. Plant Load factor (PLF) is
also taken into consideration. This collectively gives the amount of fuel required to
generate the stipulated amount of power. After knowing the amount of fuel required and
the cost for 25 years we calculate the fuel cost on yearly basis.
(Fuel requirement sheet is attached in Annexure VI)
VARIABLE TARIFF:
Variable tariff only takes into account the primary fuel cost. This is obtained by using
formula:
Variable Cost
Electricity Units sold
FIXED TARIFF:
As per CERC norms, the fixed cost takes the following parameters into consideration:
Secondary Fuel Cost
Interest on Loan Capital
Return on Equity
Depreciation
O&M Expenses
Interest on Working Capital
The sum of variable cost and the fixed cost gives the total Tariff that should be charged
to get the desire return on Equity.
DEPRECIATION
Depreciation is calculated on the Machinery and Building strictly according to the CERC
Guidelines. Depreciation shall be calculated on straight line method and at rates
specified in the CERC guidelines for the assets of the generating station but the company
files the tax according to IT ACT section 80.
(Tariff sheets attached in Annexure IV)
CASH FLOW
The Objective of this part is to calculate the total cash flow Inflow and Outflows, and
then to calculate the excess/shortfall.
(Detailed Cash flow sheets is attached in Annexure X)
BALANCE SHEET
This part accounts for the assets and liabilities per year for the project for 25 years from
COD.
(Detailed Balance sheet is attached in Annexure XI)
RATIOS
This part is used to calculate the relevant ratios in order to determine the financial
viability of the project. The Minimum, average and maximum Debt Service Coverage
Ratio is calculated along with Internal Rate of Return and Net present Value are
calculated.
(Detailed Ratios sheet is attached in Annexure XII)
The financial projections, based on the capital/project cost as specified by the borrower,
would be as below:
A sensitivity analysis of the Company’s financial position has been carried to ascertain
the robustness of its financials. Various scenarios for which the sensitivities was carried
out and the results are as follows:
It may be observed from above mentioned results that project financials are quite robust
in various scenarios and the DSCR levels are above satisfactory.
i) PRE CONSTRUCTION
ii) CONSTRUCTION
STRENGTH
The Project has long term fuel supply agreement with Coal India Limited of Coal
for use in the Project.
The Project is located in severe power shortage region. State itself has been
facing severe power shortage and the power deficit is likely to continue in short
and medium term.
The Company has already acquired 600 Ha land which is adequate for the main
power plant block. The work on site may start immediately without any delay.
WEAKNESS
Company shall be selling 30% of power on Merchant Basis and may get lower
return than the levelised cost of generation.
The Electricity Act 2003 and subsequent National Electricity Policy and Tariff
Policy have opened up several opportunities for the power sector. The Act allows
the IPPs and captive power producers open access to transmission system, thus
allowing them to bypass the SEBs and sell power directly to bulk consumers.
These provisions will give credence to the concept of merchant power.
With the advent of the era of competitive bidding for tariff for procurement of
power, the new capacities would not be subject to regulated tariff and regulated
return of equity and thus provide investment opportunities to Developers in the
power sector where returns would be market determined.
There is huge power deficit in the country and the demand supply situation in the
country is expected to remain favourable to power generators for the next 8/10
years at least. This presents huge opportunities in the power sector for power
generators.
THREATS
A part of power generated will be sold on Merchant basis and may get lower
return than the levelised cost of generation.
Fuel supply agreement with Coal India Limited may result in delay
7.3 LIMITATIONS
This analysis is limited to an examination of annualized expenses and revenue and
represents a prototypical year of operations. This analysis should examine alternative pay
as- you-go and debt financed scenarios, be conducted in year-of-expenditure, and address
the underlying uncertainties associated with inflation, interest rates, project cost
(exclusive of inflation), foreign exchange rate, grant funding levels and rates of payment,
and other factors over which the project sponsor will have no direct control.
The assumptions and sources of information underlying the development of the capital
and operating cost estimates are an integral part of the financial analyses documented in
this report. Uncertainties associated with fluctuating economic conditions and other
factors may result in the actual results of the financial program varying from the
projections in the financial analyses, and the variations could be material.
Some of the major limitations and issues regarding the project appraisal are as follow:
The rate of escalation is taken as constant over the life of the project (about 25
years); being the life of project large it is not easy to predict the actual cost and
inflationary effect on the price of fuels and other inputs with the change in market
conditions.
Cash flows not really known until the project is in service – no history of cash
flows.
Project Appraisal & Financial Modeling 50 | P a g e
Value of debt and equity driven by cash flow.
The Company has already acquired the land required for the Main plant from Industrial
Development Corporation and has made the requisite payments. The remaining required
land has been identified and the process of acquisition is underway.
The Project requires about 3771700 TPA coal based on average GCV of 3400 kcal/kg
and PLF of 85%. The company made an FSA with CIL for the Proposed Project.
Appropriate arrangements are proposed to be done. The Project will require about 150
cubic meter per hour make-up water during operation. A raw water reservoir of 25200m3
capacity to hold 7 days requirement for plant requirement of water will be constructed at
the plant site.
Of the total 462 MW of power is proposed to be sold as PPA as per CERC tariff.
Balance 198 MW will be sold on Merchant basis at Rs 3.5 per unit with an escalation of
3% p.a. Considering the cost of generation of Rs. 2.475 per unit, company does not
envisage any difficulties in selling the power through merchant route. Power Evacuation
will be through two double circuit 400 KV transmission lines connecting the Project to
the PGCIL substation and State TRANSCO substation.
The Electricity Act 2003 and subsequent National Electricity Policy and Tariff Policy
have
opened up several opportunities for the power sector. The Act allows the IPPs and
captive power producers open access to transmission system, thus allowing them to
bypass the SEBs and sell power directly to bulk consumers. Slowly open access in
distribution system is also being allowed.
Subject to the weaknesses and threats enumerated in the SWOT analysis and the impact
of the various scenarios as envisaged under the sensitivity analysis, the Proposed Project
is viewed as economically viable. Thus, loan amount should be granted by PFC equal to
the request of the borrower.
With the deficit of electricity in our country, there is need of many projects and
the exposure limit should be increased to effectively assist the new projects. The
exposure limit of some utility is going to reached, which resist PFC to fund.
With the increasing IPPs in power generation the exposure to them should be
more and the portfolio size for IPPs should be increased. It will increase the
revenue because of higher interest rate and some extra charges.
Currently PFC has less % funding in renewable energy, PFC should also
concentrate to increase its share in renewable energy.
With the changes in project parameters, the re-rating of project should be done at
an appropriate time and linkages of interest rate, exposure limit and security to
the new project rating should be done.
8.3 LEARNING
The experience and know-how gained from this internship, has left me in more
compliant form and stature in order to fare better in areas of similar interest. Now I
here make it sort with few but most important points what I have learned:
MEANS OF FINANCE
vi) Miscellaneous
Particulars Amount (In Crore)
Coal conveyor from Port 12
Railway siding 55
Water intake 29.5
Desalination plant and auxiliaries 50
TOTAL 146.5
PROJECT PHASING
Month Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11
Financial Year 2010 2010 2010 2010 2010 2010 2010 2010 2010 2011 2011 2011 2011 2011 2011 2011
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Total
Percentage 100% 1.50% 1.50% 1.50% 2.00% 2.00% 2.00% 2.00% 2.00% 1.00% 1.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
Amount 4251 63.76804 63.76804 63.76804 85.02406 85.02406 85.02406 85.02406 85.02406 42.51203 42.51203 85.02406 85.02406 85.02406 85.02406 85.02406 85.02406
Upfront Equity 547.34 63.76804 63.76804 63.76804 85.02406 85.02406 85.02406 85.02406 15.94 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Upfront Debt 1642.03 0.000 0.000 0.000 0.000 0.000 0.000 0.000 69.08205 42.51203 42.51203 85.02406 85.02406 85.02406 85.02406 85.02406 85.02406
Matching Equity 515.46 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Matching Debt 1546.38 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Total Equity 1062.80 63.768 63.768 63.768 85.024 85.024 85.024 85.024 15.942 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Total Debt 3188.40 0.000 0.000 0.000 0.000 0.000 0.000 0.000 69.08205 42.51203 42.51203 85.02406 85.02406 85.02406 85.02406 85.02406 85.02406
Total Senior Debt 3188.402 0.000 0.000 0.000 0.000 0.000 0.000 0.000 69.082 42.512 42.512 85.024 85.024 85.024 85.024 85.024 85.024
Total Sub Debt 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Opening Balance 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 69.082 111.594 154.106 239.130 324.154 409.178 494.202 579.226
Monthly Disbursement 0.000 0.000 0.000 0.000 0.000 0.000 0.000 69.082 42.512 42.512 85.024 85.024 85.024 85.024 85.024 85.024
Closing Balance 0.000 0.000 0.000 0.000 0.000 0.000 0.000 69.082 111.594 154.106 239.130 324.154 409.178 494.202 579.226 664.250
Interest During Construction 656.203 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.381 0.997 1.467 2.171 3.110 4.049 4.987 5.926 6.865
YEARLY PHASING
2.00% 2.00% 2.00% 2.00% 2.00% 2.50% 2.00% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 3.00% 2.50% 2.50%
85.02406 85.02406 85.02406 85.02406 85.02406 106.2801 85.02406 106.2801 106.2801 106.2801 106.2801 106.2801 106.2801 106.2801 106.2801 106.2801 106.2801 127.5361 106.2801 106.2801
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
85.02406 85.02406 85.02406 85.02406 85.02406 106.2801 85.02406 106.2801 106.2801 106.2801 42.5120 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 15.942 26.570 26.570 26.570 26.570 26.570 26.570 31.884 26.570 26.570
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 47.826 79.710 79.710 79.710 79.710 79.710 79.710 95.652 79.710 79.710
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 15.942 26.570 26.570 26.570 26.570 26.570 26.570 31.884 26.570 26.570
85.02406 85.02406 85.02406 85.02406 85.02406 106.2801 85.02406 106.2801 106.2801 106.2801 90.338 79.710 79.710 79.710 79.710 79.710 79.710 95.652 79.710 79.710
85.024 85.024 85.024 85.024 85.024 106.280 85.024 106.280 106.280 106.280 90.338 79.710 79.710 79.710 79.710 79.710 79.710 95.652 79.710 79.710
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
664.250 749.274 834.299 919.323 1004.347 1089.371 1195.651 1280.675 1386.955 1493.235 1599.515 1689.853 1769.563 1849.273 1928.983 2008.693 2088.403 2168.113 2263.766 2343.476
85.024 85.024 85.024 85.024 85.024 106.280 85.024 106.280 106.280 106.280 90.338 79.710 79.710 79.710 79.710 79.710 79.710 95.652 79.710 79.710
749.274 834.299 919.323 1004.347 1089.371 1195.651 1280.675 1386.955 1493.235 1599.515 1689.853 1769.563 1849.273 1928.983 2008.693 2088.403 2168.113 2263.766 2343.476 2423.186
7.804 8.743 9.681 10.620 11.559 12.615 13.671 14.728 15.901 17.075 18.160 19.099 19.979 20.859 21.739 22.619 23.500 24.468 25.436 26.316
ANNEXURE IV: DEPRECIATION
Total Dep as per IT 90.068 347.4431 297.9835 255.6771 219.4776 188.4929 161.9621 139.2366 119.7631 103.0694 88.75271 76.46913
0 1 2 3 4 5 6 7 8 9 10 11
Depreciation 31.53483 126.1393 126.1393 126.1393 126.1393 126.1393 126.1393 126.1393 126.1393 126.1393 126.1393 126.1393
Cumulative Depreciation 31.53483 157.6742 283.8135 409.9529 536.0922 662.2315 788.3709 914.5102 1040.65 1166.789 1292.928 1419.068
12 13 14 15 16 17 18 19 20 21 22 23 24 25
166.75 150.08 135.07 121.56 109.41 98.46 88.62 79.76 71.78 64.60 58.14 52.33 47.10 42.39
16.67511 15.0076 13.50684 12.15616 10.94054 9.846486 8.861837 7.975654 7.178088 6.460279 5.814252 5.232826 4.709544 3.178942
150.08 135.07 121.56 109.41 98.46 88.62 79.76 71.78 64.60 58.14 52.33 47.10 42.39 39.21
328.3336 279.0836 237.2211 201.6379 171.3922 145.6834 123.8309 105.2562 89.4678 76.04763 64.64049 54.94442 46.70275 39.69734
49.25005 41.86254 35.58316 30.24568 25.70883 21.85251 18.57463 15.78844 13.42017 11.40715 9.696073 8.241662 7.005413 4.465951
279.0836 237.2211 201.6379 171.3922 145.6834 123.8309 105.2562 89.4678 76.04763 64.64049 54.94442 46.70275 39.69734 35.23139
65.92516 56.87014 49.09 42.40184 36.64937 31.69899 27.43647 23.76409 20.59826 17.86742 15.51032 13.47449 11.71496 7.644893
12 13 14 15 16 17 18 19 20 21 22 23 24 25
89.18573 89.18573 89.18573 89.18573 89.18573 89.18573 89.18573 89.18573 89.18573 89.18573 89.18573 89.18573 89.18573 66.88929
1508.253 1597.439 1686.625 1775.81 1864.996 1954.182 2043.368 2132.553 2221.739 2310.925 2400.111 2489.296 2578.482 2645.371
ANNEXURE V: DEBT SERVICING
SECONDARY FUEL
ENERGY CHARGE
Year 0 1 2 3 4 5 6 7 8 9 10 11 12
Total Coal cost per annum
77.457 325.320 341.586 358.665 376.598 395.428 415.200 435.960 457.758 480.646 504.678 529.912 556.407
(in crs)
Total secondary fuel oil cost
5.84 24.277 25.248 26.258 27.308 28.401 29.537 30.718 31.947 33.225 34.554 35.936 37.373
per annum (in crs)
13 14 15 16 17 18 19 20 21 22 23 24 25
584.2277 613.4391 644.111 676.3166 710.1324 745.639054 782.9210065 822.0671 863.1704 906.3289 951.6454 999.2276 786.8918
38.86816 40.42289 42.0398 43.72139 45.47025 47.2890603 49.18062275 51.14785 53.19376 55.32151 57.53437 59.83575 46.67188
ANNEXURE VII: WORKING CAPITAL
Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
0 1 2 3 4 5 6 7 8 9 10
ITEMS
Primary Fuel 2 Months 12.910 54.220 56.931 59.778 62.766 65.905 69.200 72.660 76.293 80.108 84.113
Secondary Fuel 2 Months 0.973 4.046 4.208 4.376 4.551 4.733 4.923 5.120 5.324 5.537 5.759
O&M Expense 1 Month 8.498 8.984 9.498 10.042 10.616 11.223 11.865 12.544 13.261 14.020 14.822
Maintenance
20% O&M 20.396 21.563 22.796 24.100 25.479 26.936 28.477 30.105 31.828 33.648 35.573
Spares
Receivables 2 Months 56.723 231.998 235.202 238.503 242.191 246.287 250.810 255.784 261.229 267.172 273.636
WORKING CAPITAL
Total Working Capital 99.500 320.812 328.635 336.798 345.603 355.084 365.275 376.213 387.936 400.485 413.902
Increase in Working Capital 99.500 221.312 7.823 8.163 8.805 9.481 10.191 10.938 11.723 12.549 13.418
Working Capital Debt 74.625 240.609 246.476 252.599 259.203 266.313 273.956 282.160 290.952 300.364 310.427
Interest on Working Capital 9.701 31.279 32.042 32.838 33.696 34.621 35.614 36.681 37.824 39.047 40.355
CURRENT ASSETS
Total Current Assets 91.001 311.827 319.137 326.756 334.987 343.861 353.410 363.669 374.674 386.465 399.080
Increase in Current Assets 91.001 220.826 7.309 7.620 8.231 8.873 9.549 10.259 11.006 11.790 12.616
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039
11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
88.319 92.735 97.371 102.240 107.352 112.719 118.355 124.273 130.487 137.011 143.862 151.055 158.608 166.538 131.149
5.989 6.229 6.478 6.737 7.007 7.287 7.578 7.882 8.197 8.525 8.866 9.220 9.589 9.973 7.779
15.670 16.566 17.514 18.515 19.575 20.694 21.878 23.129 24.452 25.851 27.330 28.893 30.546 32.293 34.140
37.607 39.759 42.033 44.437 46.979 49.666 52.507 55.510 58.686 62.042 65.591 69.343 73.309 77.503 81.936
280.648 288.731 299.635 312.800 326.635 341.172 356.448 372.500 389.368 407.092 425.718 445.291 465.858 487.471 349.734
428.233 444.019 463.030 484.730 507.547 531.539 556.767 583.294 611.189 640.522 671.367 703.802 737.910 773.777 604.737
14.331 15.786 19.011 21.699 22.817 23.992 25.228 26.528 27.895 29.333 30.845 32.435 34.108 35.868 -169.041
321.175 333.014 347.273 363.547 380.660 398.654 417.575 437.471 458.392 480.391 503.525 527.851 553.432 580.333 453.553
41.753 43.292 45.145 47.261 49.486 51.825 54.285 56.871 59.591 62.451 65.458 68.621 71.946 75.443 58.962
412.564 427.453 445.517 466.214 487.972 510.844 534.889 560.165 586.737 614.671 644.037 674.909 707.364 741.485 570.597
13.483 14.889 18.064 20.698 21.758 22.872 24.044 25.276 26.572 27.934 29.366 30.872 32.455 34.120 -170.888
ANNEXURE VIII: TARIFF
Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Variable Tariff
Energy Available Million
1228.59 4914.36 4914.36 4914.36 4914.36 4914.36 4914.36 4914.36 4914.36 4914.36 4914.36 4914.36 4914.36 4914.36 4914.36 4914.36 4914.36 4914.36 4914.36 4914.36 4914.36 4914.36 4914.36 4914.36 4914.36 3685.77
for Sale Units
Variable Fuel Cost Rs Crore 77.46 325.32 341.59 358.67 376.60 395.43 415.20 435.96 457.76 480.65 504.68 529.91 556.41 584.23 613.44 644.11 676.32 710.13 745.64 782.92 822.07 863.17 906.33 951.65 999.23 786.89
Variable Fuel Cost per
Rs/kwh 0.63 0.66 0.70 0.73 0.77 0.80 0.84 0.89 0.93 0.98 1.03 1.08 1.13 1.19 1.25 1.31 1.38 1.45 1.52 1.59 1.67 1.76 1.84 1.94 2.03 2.13
Unit
Fixed Tariff
Interest Rs Crore 105.62 415.58 381.14 344.40 307.66 270.93 234.19 197.46 160.72 123.98 87.25 50.51 13.78 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Return on Equity Rs Crore 52.10 208.42 208.42 208.42 208.42 208.42 208.42 208.42 208.42 208.42 208.42 208.42 249.56 249.56 249.56 249.56 249.56 249.56 249.56 249.56 249.56 249.56 249.56 249.56 249.56 187.17
Depreciation Rs Crore 31.53 126.14 126.14 126.14 126.14 126.14 126.14 126.14 126.14 126.14 126.14 126.14 89.19 89.19 89.19 89.19 89.19 89.19 89.19 89.19 89.19 89.19 89.19 89.19 89.19 66.89
Cumulative
Rs Crore 31.53 157.67 283.81 409.95 536.09 662.23 788.37 914.51 1040.65 1166.79 1292.93 1419.07 1508.25 1597.44 1686.62 1775.81 1865.00 1954.18 2043.37 2132.55 2221.74 2310.92 2400.11 2489.30 2578.48 2645.37
Depreciation
O&M Expense Rs Crore 25.50 107.81 113.98 120.50 127.39 134.68 142.38 150.53 159.14 168.24 177.86 188.04 198.79 210.16 222.19 234.89 248.33 262.53 277.55 293.43 310.21 327.96 346.72 366.55 387.51 25.60
Interest on Working
Rs Crore 9.70 31.28 32.04 32.84 33.70 34.62 35.61 36.68 37.82 39.05 40.36 41.75 43.29 45.15 47.26 49.49 51.83 54.28 56.87 59.59 62.45 65.46 68.62 71.95 75.44 58.96
Capital
Fixed Cost Rs Crore 224.45 889.23 861.72 832.30 803.31 774.79 746.75 719.22 692.24 665.83 640.02 614.86 594.61 594.05 608.19 623.13 638.90 655.56 673.17 691.76 711.41 732.16 754.08 777.24 801.70 338.63
Fixed Cost per unit Rs/kwh 1.83 1.81 1.75 1.69 1.63 1.58 1.52 1.46 1.41 1.35 1.30 1.25 1.21 1.21 1.24 1.27 1.30 1.33 1.37 1.41 1.45 1.49 1.53 1.58 1.63 0.92
Total Cost per unit Rs/kwh 2.46 2.47 2.45 2.42 2.40 2.38 2.36 2.35 2.34 2.33 2.33 2.33 2.34 2.40 2.49 2.58 2.68 2.78 2.89 3.00 3.12 3.25 3.38 3.52 3.66 3.05
PV Calculation
PV Factor 1.00 0.8842 0.7818 0.69121 0.6112 0.5404 0.4778 0.4224 0.3735 0.3302 0.292 0.2582 0.2283 0.2018 0.1785 0.1578 0.1395 0.1233 0.1091 0.0964 0.0853 0.0754 0.0667 0.0589 0.0521 0.046072
Discounted Tariff
Variable Tariff Rs/kwh 0.6305 0.5853 0.5434 0.50447 0.4683 0.4348 0.4037 0.3747 0.3479 0.323 0.2999 0.2784 0.2584 0.2399 0.2228 0.2068 0.192 0.1782 0.1655 0.1536 0.1426 0.1324 0.1229 0.1141 0.1059 0.098361
Fixed Tariff Rs/kwh 1.8269 1.5999 1.3708 1.17064 0.999 0.8519 0.726 0.6182 0.5261 0.4474 0.3803 0.323 0.2762 0.244 0.2208 0.2001 0.1814 0.1645 0.1494 0.1357 0.1234 0.1123 0.1023 0.0932 0.085 0.042328
Total tariff Rs/kwh 2.4574 2.1852 1.914 1.67511 1.4673 1.2867 1.1296 0.993 0.874 0.7704 0.6801 0.6014 0.5346 0.4839 0.4436 0.4069 0.3734 0.3428 0.3149 0.2894 0.266 0.2447 0.2252 0.2073 0.191 0.140689
Levelised Tariff Rs/kwh 2.475
ANNEXURE IX: PROFIT & LOSS
0 1 2 3 4 5 6 7 8 9 10
Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenue from Energy Sale
211.336 850.182 842.311 833.672 825.936 819.150 813.363 808.627 804.998 802.532 801.292
to PTC
Revenue from energy sale
129.002 541.8082 568.8986 597.3435 627.2107 658.5712 691.4998 726.0748 762.3785 800.4975 840.5223
on Merchant basis
Total Revenue 340.338 1391.990 1411.210 1431.016 1453.147 1477.721 1504.863 1534.702 1567.376 1603.030 1641.814
Expenses
Fuel 77.457 325.320 341.586 358.665 376.598 395.428 415.200 435.960 457.758 480.646 504.678
O&M Expenses 25.495 107.813 113.980 120.500 127.393 134.679 142.383 150.527 159.138 168.240 177.864
Depreciation 31.53483 126.1393 126.1393 126.1393 126.1393 126.1393 126.1393 126.1393 126.1393 126.1393 126.1393
Interest payments 115.32 446.85 413.18 377.24 341.36 305.55 269.81 234.14 198.54 163.03 127.60
Total Expenditure 249.804 1006.127 994.883 982.542 971.490 961.795 953.528 946.763 941.578 938.056 936.284
Profit before tax, PBT 90.534 385.863 416.327 448.474 481.657 515.926 551.334 587.939 625.798 664.974 705.530
PBT+Dep on books 122.069 512.002 542.466 574.613 607.796 642.065 677.474 714.078 751.938 791.113 831.669
PBT for IT purposes 32.001 164.559 244.483 318.936 388.318 453.572 515.512 574.842 632.174 688.044 742.917
MAT 18.97593 80.87692 87.2621 94.00017 100.9552 108.138 115.5597 123.232 131.1673 139.3785 147.8791
Corporate Tax 10.87709 55.93375 83.09967 108.4064 131.9894 154.1692 175.2224 195.3887 214.8761 233.866 252.5174
Payable Tax 18.97593 80.87692 87.2621 108.4064 131.9894 154.1692 175.2224 195.3887 214.8761 233.866 252.5174
Profit after tax, PAT 71.558 304.986 329.065 340.068 349.667 361.757 376.112 392.550 410.922 431.108 453.013
11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039
801.340 805.709 824.798 855.142 887.065 920.652 955.988 993.165 1032.279 1073.433 1116.731 1162.287 1210.219 1260.651 787.862
882.5484 926.6759 973.0097 1021.66 1072.743 1126.38 1182.699 1241.834 1303.926 1369.122 1437.578 1509.457 1584.93 1664.177 1310.539
1683.889 1732.385 1797.807 1876.802 1959.809 2047.032 2138.687 2234.999 2336.205 2442.555 2554.309 2671.744 2795.149 2924.828 2098.401
529.912 556.407 584.228 613.439 644.111 676.317 710.132 745.639 782.921 822.067 863.170 906.329 951.645 999.228 786.892
188.037 198.793 210.164 222.186 234.895 248.330 262.535 277.552 293.428 310.212 327.956 346.715 366.547 387.514 25.605
126.1393 89.18573 89.18573 89.18573 89.18573 89.18573 89.18573 89.18573 89.18573 89.18573 89.18573 89.18573 89.18573 89.18573 66.88929
92.26 57.07 45.15 47.26 49.49 51.83 54.28 56.87 59.59 62.45 65.46 68.62 71.95 75.44 58.96
936.353 901.454 928.723 972.071 1017.677 1065.658 1116.138 1169.248 1225.126 1283.916 1345.771 1410.851 1479.325 1551.371 938.348
747.536 830.931 869.084 904.730 942.132 981.374 1022.549 1065.751 1111.080 1158.639 1208.539 1260.894 1315.824 1373.457 1160.053
873.675 920.117 958.270 993.916 1031.317 1070.560 1111.735 1154.937 1200.266 1247.825 1297.725 1350.079 1405.010 1462.643 1226.943
797.206 854.192 901.400 944.826 988.915 1033.911 1080.036 1127.501 1176.501 1227.227 1279.857 1334.569 1391.536 1450.928 1219.298
156.6835 174.1632 182.1601 189.6315 197.4708 205.6961 214.3264 223.3815 232.8823 242.8508 253.3097 264.2833 275.7968 287.8766 243.1472
270.9702 290.3398 306.3858 321.1463 336.1324 351.4263 367.1043 383.2375 399.8929 417.1343 435.0234 453.62 472.9829 493.1704 414.4393
270.9702 290.3398 306.3858 321.1463 336.1324 351.4263 367.1043 383.2375 399.8929 417.1343 435.0234 453.62 472.9829 493.1704 414.4393
476.565 540.591 562.698 583.584 605.999 629.948 655.445 682.514 711.187 741.505 773.515 807.274 842.841 880.287 745.614
ANNEXURE X: CASH FLOW
0 1 2 3 4 5 6 7 8 9 10 11 12
Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Inflow
Equity 1062.80 0 0 0 0 0 0 0 0 0 0 0 0
Debt 3271.53 166.46 6.39 6.66 7.18 7.71 8.29 8.87 9.51 10.17 10.86 11.60 12.74
Term Loan 3188.40 0 0 0 0 0 0 0 0 0 0 0 0
WC Debt 83.12 166.46 6.39 6.66 7.18 7.71 8.29 8.87 9.51 10.17 10.86 11.60 12.74
PBT 90.534 385.863 416.327 448.474 481.657 515.926 551.334 587.939 625.798 664.974 705.530 747.536 830.931
Depreciation 31.535 126.139 126.139 126.139 126.139 126.139 126.139 126.139 126.139 126.139 126.139 126.139 89.186
Total cash inflow 4456.40 678.47 548.85 581.28 614.98 649.78 685.77 722.95 761.45 801.28 842.53 885.27 932.86
Outflow
Project expenditure 4251.20 0 0 0 0 0 0 0 0 0 0 0 0
Increase in WC 99.500 221.312 7.823 8.163 8.805 9.481 10.191 10.938 11.723 12.549 13.418 14.331 15.786
Tax 18.976 80.877 87.262 108.406 131.989 154.169 175.222 195.389 214.876 233.866 252.517 270.970 290.340
Loan repayments 0.000 207.939 277.252 277.252 277.252 277.252 277.252 277.252 277.252 277.252 277.252 277.252 207.939
Total cash outflow 4369.68 510.13 372.34 393.82 418.05 440.90 462.67 483.58 503.85 523.67 543.19 562.55 514.06
Excess/Shortfall 86.718 168.338 176.516 187.454 196.933 208.873 223.101 239.373 257.598 277.617 299.345 322.720 418.791
Opening Balance 0.000 86.718 255.056 431.572 619.026 815.959 1024.832 1247.934 1487.306 1744.905 2022.522 2321.867 2644.587
Closing Balance 86.718 255.056 431.572 619.026 815.959 1024.832 1247.934 1487.306 1744.905 2022.522 2321.867 2644.587 3063.378
13 14 15 16 17 18 19 20 21 22 23 24 25
2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039
0 0 0 0 0 0 0 0 0 0 0 0 0
15.20 17.28 18.16 19.11 20.11 21.15 22.24 23.40 24.61 25.89 27.24 28.64 -124.93
0 0 0 0 0 0 0 0 0 0 0 0 0
15.20 17.28 18.16 19.11 20.11 21.15 22.24 23.40 24.61 25.89 27.24 28.64 -124.93
869.084 904.730 942.132 981.374 1022.549 1065.751 1111.080 1158.639 1208.539 1260.894 1315.824 1373.457 1160.053
89.186 89.186 89.186 89.186 89.186 89.186 89.186 89.186 89.186 89.186 89.186 89.186 66.889
973.47 1011.20 1049.48 1089.67 1131.85 1176.08 1222.51 1271.22 1322.34 1375.97 1432.25 1491.28 1102.01
0 0 0 0 0 0 0 0 0 0 0 0 1
19.011 21.699 22.817 23.992 25.228 26.528 27.895 29.333 30.845 32.435 34.108 35.868 -169.041
306.386 321.146 336.132 351.426 367.104 383.237 399.893 417.134 435.023 453.620 472.983 493.170 414.439
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
325.40 342.85 358.95 375.42 392.33 409.77 427.79 446.47 465.87 486.06 507.09 529.04 246.40
648.071 668.355 690.531 714.256 739.514 766.318 794.719 824.757 856.470 889.911 925.160 962.246 855.614
3063.378 3711.450 4379.805 5070.335 5784.591 6524.105 7290.423 8085.142 8909.899 9766.37 10656.28 11581.44 12543.69
3711.450 4379.805 5070.335 5784.591 6524.105 7290.423 8085.142 8909.899 9766.37 10656.28 11581.44 12543.69 13399.30
ANNEXURE XI: BALANCE SHEET
0 1 2 3 4 5 6 7 8 9 10 11
Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Liabilities
Equity Capital 1062.801 1062.801 1062.801 1062.801 1062.801 1062.801 1062.801 1062.801 1062.801 1062.801 1062.801 1062.801
Reserve and Surplus 71.558 376.544 705.609 1045.677 1395.344 1757.100 2133.213 2525.763 2936.685 3367.793 3820.805 4297.371
Loan Funds 3263.027 3221.072 2949.687 2678.557 2407.908 2137.767 1868.157 1599.108 1330.648 1062.808 795.618 529.114
Term Loan 3188.402 2980.463 2703.210 2425.958 2148.706 1871.453 1594.201 1316.949 1039.696 762.444 485.192 207.939
Working Capital loan 74.625 240.609 246.476 252.599 259.203 266.313 273.956 282.160 290.952 300.364 310.427 321.175
Total Liabilities 4397.39 4660.42 4718.10 4787.03 4866.05 4957.67 5064.17 5187.67 5330.13 5493.40 5679.22 5889.29
Assets
Project Asset 4219.67 4093.53 3967.39 3841.25 3715.11 3588.97 3462.83 3336.69 3210.55 3084.41 2958.27 2832.14
Depreciation 31.535 126.139 126.139 126.139 126.139 126.139 126.139 126.139 126.139 126.139 126.139 126.139
Current Asset 91.001 311.827 319.137 326.756 334.987 343.861 353.410 363.669 374.674 386.465 399.080 412.564
Coal Stock 12.910 54.220 56.931 59.778 62.766 65.905 69.200 72.660 76.293 80.108 84.113 88.319
Secondary Fuel 0.973 4.046 4.208 4.376 4.551 4.733 4.923 5.120 5.324 5.537 5.759 5.989
Maintenance Spares 20.396 21.563 22.796 24.100 25.479 26.936 28.477 30.105 31.828 33.648 35.573 37.607
Receivables 56.723 231.998 235.202 238.503 242.191 246.287 250.810 255.784 261.229 267.172 273.636 280.648
Cash 86.718 255.056 431.572 619.026 815.959 1024.832 1247.934 1487.306 1744.905 2022.522 2321.867 2644.587
Total Assets 4397.39 4660.41 4718.10 4787.03 4866.06 4957.66 5064.18 5187.67 5330.13 5493.40 5679.22 5889.29
Difference 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
12 13 14 15 16 17 18 19 20 21 22 23 24 25
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039
1062.801 1062.801 1062.801 1062.801 1062.801 1062.801 1062.801 1062.801 1062.801 1062.801 1062.801 1062.801 1062.801 1062.801
4837.962 5400.660 5984.244 6590.244 7220.192 7875.637 8558.151 9269.338 10010.843 10784.358 11591.632 12434.473 13314.760 14060.37
333.014 347.273 363.547 380.660 398.654 417.575 437.471 458.392 480.391 503.525 527.851 553.432 580.333 453.553
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
333.014 347.273 363.547 380.660 398.654 417.575 437.471 458.392 480.391 503.525 527.851 553.432 580.333 453.553
6233.78 6810.73 7410.59 8033.70 8681.65 9356.01 10058.42 10790.53 11554.03 12350.68 13182.28 14050.71 14957.89 15576.73
2742.95 2653.76 2564.58 2475.39 2386.21 2297.02 2207.84 2118.65 2029.46 1940.28 1851.09 1761.91 1672.72 1606.83
89.186 89.186 89.186 89.186 89.186 89.186 89.186 89.186 89.186 89.186 89.186 89.186 89.186 66.889
427.453 445.517 466.214 487.972 510.844 534.889 560.165 586.737 614.671 644.037 674.909 707.364 741.485 570.597
92.735 97.371 102.240 107.352 112.719 118.355 124.273 130.487 137.011 143.862 151.055 158.608 166.538 131.149
6.229 6.478 6.737 7.007 7.287 7.578 7.882 8.197 8.525 8.866 9.220 9.589 9.973 7.779
39.759 42.033 44.437 46.979 49.666 52.507 55.510 58.686 62.042 65.591 69.343 73.309 77.503 81.936
288.731 299.635 312.800 326.635 341.172 356.448 372.500 389.368 407.092 425.718 445.291 465.858 487.471 349.734
3063.378 3711.450 4379.805 5070.335 5784.591 6524.105 7290.423 8085.142 8909.899 9766.369 10656.280 11581.440 12543.685 13399.30
6233.78 6810.73 7410.60 8033.70 8681.64 9356.01 10058.42 10790.53 11554.03 12350.68 13182.28 14050.71 14957.89 15576.73
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
ANNEXURE XII: RATIOS
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
453.013 476.565 540.591 562.698 583.584 605.999 629.948 655.445 682.514 711.187 741.505 773.515 807.274 842.841 880.287
126.139 126.139 89.186 89.186 89.186 89.186 89.186 89.186 89.186 89.186 89.186 89.186 89.186 89.186 89.186
87.248 50.512 13.776 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
40.355 41.753 43.292 45.145 47.261 49.486 51.825 54.285 56.871 59.591 62.451 65.458 68.621 71.946 75.443
252.517 270.970 290.340 306.386 321.146 336.132 351.426 367.104 383.237 399.893 417.134 435.023 453.620 472.983 493.170
959.273 965.940 977.185 1003.415 1041.177 1080.803 1122.385 1166.020 1211.808 1259.857 1310.276 1363.183 1418.700 1476.956 1538.086
959.273 965.940 977.185 1003.415 1041.177 1080.803 1122.385 1166.020 1211.808 1259.857 1310.276 1363.183 1418.700 1476.956 1538.086
453.013 476.565 540.591 562.698 583.584 605.999 629.948 655.445 682.514 711.187 741.505 773.515 807.274 842.841 880.287
453.01274 476.56532 540.59141 562.69847 583.58389 605.9992 629.94819 655.44518 682.51395 711.18699 741.50481 773.51537 807.27366 842.841393 880.286707
ANNEXURE XIII: DSCR
0 1 2 3 4 5 6 7 8 9 10 11 12
Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
PAT 71.558 304.986 329.065 340.068 349.667 361.757 376.112 392.550 410.922 431.108 453.013 476.565 540.591
Add: Depreciation 31.535 126.139 126.139 126.139 126.139 126.139 126.139 126.139 126.139 126.139 126.139 126.139 89.186
Add: Interest on Term Loan 105.616 415.575 381.135 344.399 307.663 270.928 234.192 197.456 160.720 123.984 87.248 50.512 13.776
Add: Tax 18.976 80.877 87.262 108.406 131.989 154.169 175.222 195.389 214.876 233.866 252.517 270.970 290.340
Total 227.685 927.578 923.602 919.013 915.460 912.993 911.665 911.534 912.657 915.097 918.917 924.187 933.893
Principal Repayment 0.000 207.939 277.252 277.252 277.252 277.252 277.252 277.252 277.252 277.252 277.252 277.252 207.939
Interest Payment 105.616 415.575 381.135 344.399 307.663 270.928 234.192 197.456 160.720 123.984 87.248 50.512 13.776
Total Debt Services 105.616 623.515 658.388 621.652 584.916 548.180 511.444 474.708 437.972 401.236 364.500 327.764 221.715
DSCR 2.156 1.488 1.403 1.478 1.565 1.665 1.783 1.920 2.084 2.281 2.521 2.820 4.212
Minimum DSCR 1.403
Average DSCR 2.106
Maximum DSCR 4.212