- The Rajasthan Electricity Regulatory Commission

RAJASTHAN ELECTRICITY REGULATORY COMMISSION, JAIPUR
In the matter of determination of generic tariff for sale of electricity from Wind
Power Plants getting commissioned during FY 2015-16 in the State to
Distribution Licensee.
Coram:
1. Shri Vishvanath Hiremath, Chairman
2. Shri Vinod Pandya, Member
3. Shri Raghuvendra Singh, Member
Date of Order:
29.05.2015
Order
1.
The Commission has notified the RERC (Terms and Conditions for
Determination of Tariff for Renewable Energy Sources - Wind and Solar
Energy) Regulations, 2014 on 24.02.2014 (hereinafter called as the RERC
RE Tariff Regulations, 2014). As per regulation 7(1) of the RERC RE Tariff
Regulations, 2014, Commission may determine generic tariff on
Suo-Motu basis at the beginning of each year of the control period for
Wind Power Plants for which principles and norms have been specified
under these Regulations.
2.
Commission, based on the benchmark capital cost for wind power
plants for FY 2014-15, and performance parameters contained in the
RERC RE Tariff Regulations, 2014 had prepared the draft order to
determine the generic tariff for the Wind Power Plants getting
commissioned during FY 2015-16 and the same was issued for inviting
comments/suggestions from the stakeholders The last date for
submission of comments/suggestions by the stakeholders/public was
20.04.2015.
WIND 2015-16
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3.
Public notices were published in the following newspapers on the dates
mentioned against each inviting comments/suggestions from the
stakeholders on the draft order:
Rajasthan Patrika :
21.03.2015
Rashtradoot
:
21.03.2015
The Times of India :
22.03.2015
Public notices along with the draft order were also placed on the
Commission’s website.
4.
The
Stakeholders
who
offered
their
suggestions/comments
are
mentioned at Annexure-I.
5.
Commission has considered the comments/suggestions received from
the stakeholders. The present regulatory exercise is limited to
determination of generic tariff based on the parameters contained in
RERC RE Tariff Regulations, 2014. The comments/suggestions of the
stakeholders received on parameters such as capital cost, O&M
Expenses and its escalation, interest on long term loan and working
capital, working capital requirement (receivables of debtors), CUF and
deration are already incorporated in the RERC RE Tariff Regulations,
2014 and this order has to follow the provisions of Regulations in respect
of above mentioned parameters.
6.
Commission, through this order, is determining the tariff for Wind Power
Plants on Suo-Motu basis based on the parameters specified in the
Regulations and duly taking note of the suggestions/comments made
by stakeholders on the draft order circulated.
7.
The issues raised by the stakeholders in their comments/suggestions
have been broadly grouped and summarized as under:
(1)
Accelerated Depreciation benefit;
(2)
Surcharge on MAT/Income Tax Rate;
(3)
Discount Rate;
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8.
(4)
Applicability of tariff ; and
(5)
Competitive bidding in wind sector.
The above issues and Commission’s analysis/decision thereon have
been dealt in the following paras:
(1)
Accelerated Depreciation Benefit
9.
In the draft order, for determining higher depreciation benefit, the
depreciation rate of 15% of the written down value (WDV) as per the
Income Tax Act, 1961 has been compared with the depreciation rate
specified under the RERC RE Tariff Regulations, 2014 i.e. 5.83% of the
capital cost per annum on Straight Line Method (SLM) basis for 12 years
and the remaining depreciable value spread over the remaining useful
life of the project from the 13th Year onwards.
10.
It has been requested by the stakeholders that Government of India
vide its Notification No.43/2014/F.No.152/1/2013-TPL S.O. 2399(E) dated
16.09.2014 has reinstated the benefit of Accelerated depreciation of
80% for Wind Power Plants installed on or after 1.04.2014. Accordingly,
the generic tariff may be worked out.
Commission’s views/decision
11.
Commission
has
considered
the
GoI
Notification
No.43/2014/F.No.152/1/2013-TPL S.O. 2399(E) dated 16.09.2014. In
consideration of this, Commission decides that for the purpose of
assessing
levellised
benefit
of
accelerated
depreciation,
the
depreciation rate of 80% as per the said Notification of GoI be
considered instead of 15% considered in the draft order. Accordingly,
the tariff computations have been revised.
WIND 2015-16
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(2)
Surcharge on MAT/Income Tax Rate
12.
Commission in the draft order for the purpose of grossing up the base
rate of return on equity provided under regulation 15(3) of the RERC RE
Tariff Regulations, 2014, has considered the MAT rate of 20.39% (=
18.50% MAT rate+7% surcharge + 3% cess) for first year and a MAT rate
of 19.06% (= 18.5% MAT rate + 3% cess) for remaining nine years of the
first ten years. For remaining fifteen years of plant life (also equal to
useful life), the normal tax rate of 30.90% (= 30% tax rate + 3% cess) has
been applied for grossing up of the base rate of Return on Equity.
Similarly, for determination of levellised benefit of higher depreciation
also, Commission has considered tax rate of 33.06% (=30% tax rate+7%
surcharge+3% cess) for the first year and 30.90% (= 30% tax rate+ 3%
cess) for subsequent years.
13.
Stakeholders have also requested to consider rate of surcharge of 10%
in place of 7% in arriving at the rates of Minimum Alternate Tax (MAT)
and Corporate Tax. Another suggestion that surcharge at the rate of
10% and education cess at the rate of 3% may be considered for
applying MAT and Income tax for entire project life of Wind Power
Project has also been received.
Commission’s views/decision
14.
As regards considering higher rate of 10% for surcharge as against 7%,
Commission observes that as per the Union Budget 2015 declaration,
the rate of the surcharge has been increased to 7% from the existing
5% in case net taxable income is more than ` 1Crore but less than ` 10
Crores for the domestic companies for FY 2015-16. Further, the rate of
surcharge has been increased to 12% from the existing 10% in case net
taxable income is more than ` 10 Crores for domestic companies. The
capacity of most of the wind power plants supplying power to the
State Discoms is small where total net annual income of such plants
relevant for levellised tariff would be less than ` 10 Crores. Therefore,
WIND 2015-16
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these companies would not be subject to surcharge rate of 12%.
Therefore, the suggestion for change is not accepted and it is decided
to continue to take the surcharge at the rate of 7% in the computation
of generic tariff.
15.
The suggestion of considering the rate of surcharge of 10% and
education cess at the rate of 3% for applying MAT and Income tax for
entire project life were received earlier also and the same has been
dealt in detail in the Tariff Order dated 16.07.2014. In the said order
Commission has relied upon the Hon’ble APTEL judgement in the
matter of M/s Enercon (India) Limited and Indian Wind Power Association
(Rajasthan State Council) vs. Rajasthan Electricity Regulatory Commission,
Jaipur and Ors. reported in 2011 ELR (APTEL) 0987 wherein APTEL had
upheld the methodology of not considering surcharge on MAT for
second to tenth year and on corporate tax for eleventh to twentieth
year. Therefore, Commission considers it appropriate that no change is
required as far as levy of surcharge is concerned. Considering above,
Commission in the present order has also determined the levellised
tariff based on the methodology hitherto followed.
(3)
16.
Discounting Rate:
Commission in the draft order has computed discount factor
considering the normative debt equity ratio and weighted average of
the post tax rates for interest and equity components. In the
computation, for loan component (i.e.70%) of the capital cost, the post
tax interest rate of 13% multiplied by factor (1-Tax rate) has been
considered. For equity component (i.e.30%), post tax rate of return of
16% has been considered. In this manner, the discount factor had
been computed as 10.89% [=70% * 13% * (1-33.06%) + 30% *16%] and
considered in computations of the levellised tariff.
17.
A suggestion has been made that in the computation of discounting
factor, the MAT rate may be considered for the first ten years and
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corporate tax rate may be considered for eleventh to twenty fifth year
instead of considering corporate tax rate for the entire duration of
twenty five years. Another suggestion states that Commission has
considered income tax rate of 30.90% for grossing up the RoE in
computation of levellised tariff instead of income tax rate of 33.06%
considered in the draft order. The income tax rate of 30.90% used in
tariff computations may be considered for the purpose of computation
of Discount factor also.
Commission’s views/decision
18.
In the financial terms, levellised tariff is the uniform tariff (per kWh) of a
cash stream that has the same present value as the total cost of
generation of a generating plant over its life. The discount rate is the
single rate used to convert the future costs to present value in a
common year. In view of this, in computing the discount rate,
Commission had proposed income tax rate applicable for arriving at
present value in the draft order. It is mentioned that in the draft order
Commission had considered income tax rate of 33.06% for first year in
the AD benefit computations, which is also the relevant year for arriving
at the present value. In consideration of this, Commission has retained
the income tax rate of 33.06% in computations of discounting factor
also and no change is required on this account.
19.
As regards the suggestion of considering MAT for ten years and Income
tax rate from eleventh year in computation of discounting factor, it is
clarified that suggested principle is applicable for the purpose of
computing yearly cost of generation whereas the discounting factor,
as explained earlier, is used to convert these costs to present value in a
common year. Therefore, relevance and purpose of income tax rate in
both the situations is different. Commission, therefore, does not accept
the suggestion.
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Applicability of tariff:
20.
Stakeholders requested for providing clarity as regards the applicability
of tariff for two months of the current financial FY 2015-16 until the final
tariff is announced.
Commission’s views/decision
21.
It is clarified that the tariff determined through this order shall be
applicable from the beginning of the current financial year i.e. from
01.04.2015.
Competitive bidding in wind sector:
22.
One suggestion has been made that technology (design, efficiency)
and scaling (larger rotor and hub height leading to higher CUFs)
improvements have resulted in lowering of the levellised cost of Wind
electricity in spite of increase in upfront capital costs. The indexing
formula used by many SERCs is unable to capture all such factors
relevant to the final price of electricity in view of inherent problems in
determining the benchmark capital costs and CUF, the other
assumptions for interest rates, RoE expectations, with variation in
discount rate (used for levelising the tariff). The discount rate is
dependent on interest rates and RoE, which vary from investor to
investor as evident from equity and debt investments from outside
India, (where RoE expectations are much lower and cost of capital is
much cheaper). In view of the above, the wind sector needs to
emphasize on cost reductions and better performance. Competitive
Bidding, if designed and implemented well, can be effective way to
procure the required wind power at the least cost and further
incentivise cost reduction. National Electricity Policy (NEP), National
Tariff Policy (NTP) and NAPCC also provide for future procurements of
renewable
power
to
be
based
on
competitive
bidding.
Notwithstanding the delay in MNRE/MoP notifying the bidding
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guidelines for renewable power procurement by Discoms, Commission
should take lead in initiating the Wind sector to move towards
competitive bidding based procurement(as envisaged under the
NEP,NTP and NAPCC). This is all important given the revised national
target of 60 GW wind power by 2022 and weak financial health of
Discoms.
Commission’s views/decision
23.
It is stated that RERC RE Tariff Regulations, 2014 contain the enabling
provision for adopting tariff if such tariff has been determined through
a process of competitive bidding in accordance with the guidelines
issued by the Central Government, as envisaged under Section 63 of
the Electricity Act, 2003. However, it is noticed that Guidelines for
procurement of RE power through competitive bidding are yet to be
notified by the Central Government under Section 63 of the Electricity
Act, 2003. On notification only, these Guidelines would be legally
enforceable. Further, the present regulatory exercise is limited to the
determination of tariff under cost plus regime. Considering this, the
suggestion/comment
relating
to
adopting
competitive
bidding
deserves to be rejected. Accordingly, the suggestion is rejected.
The levellised generic tariff for Wind Power Plants getting commissioned
during FY 2015-16.
24.
The levellised generic tariff for Wind Power Plants getting commissioned
during FY 2015-16 has been discussed below:
Useful Life
25.
The regulation 2(22) of the RERC RE Tariff Regulations, 2014 provides for
a useful life of 25 years for Wind Power Plants and accordingly, for
computation of generic tariff, a useful life of 25 years has been
considered.
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Tariff Period
26.
The RERC RE Tariff Regulations, 2014 at regulation 5 specify that the
tariff determined for the Wind Power Plants getting commissioned
during the control period, shall continue to be applicable for entire
duration of the tariff period as stipulated in Regulation 6 of the
Regulations, which is 25 years for Wind Power Plants.
Tariff Structure, Tariff Design and Levellised Tariff
27.
As per regulation 8 of the RERC RE Tariff Regulations, 2014, the tariff for
Wind Power Plants shall be a single part tariff consisting of following
fixed cost components:
28.
(a)
Operation and Maintenance (O&M) Expenses;
(b)
Depreciation;
(c)
Interest on long-term loans;
(d)
Interest on Working Capital; and
(e)
Return on Equity.
As per regulation 9 of the RERC RE Tariff Regulations, 2014, the generic
tariff for Wind Power Plants shall be determined on levellised basis for
the tariff period and that for the purpose of levellised tariff
determination, the discount factor have been considered as per RERC
(Terms and Conditions for Determination of Tariff for Renewable Energy
Sources-Wind and Solar Energy) (First Amendment) Regulations, 2015.
The calculations for discount factor are available at Annexure-II,
accordingly the discount factor considered is10.89%.
Capital Cost
29.
Commission at regulation 22(2) of the RERC RE Tariff Regulations, 2014
has specified a normative Capital cost of ` 565 Lakh/MW for Wind
Power Plants for FY 2014-15. This capital cost is also inclusive of ` 25
Lakh/MW towards the cost of transmission system including pooling
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station upto the interconnection point, and this ` 25 Lakh/MW also
includes ` 2 Lakh/MW for grid connectivity charges payable to
Transmission licensee for the FY 2014-15.
30.
In the draft order, in order to arrive at the capital cost for FY 2015-16,
the capital cost indexation formula specified at regulation 23 of the
RERC RE Tariff Regulations, 2014 has been applied on the total capital
cost of ` 565 Lakh/MW specified for the base year FY 2014-15. As per
regulation 36 of the said Regulations, the connectivity charges of ` 2
Lakh/MW are fixed. Therefore, the capital cost indexation factor is to
be applied on capital cost reduced to the extent of connectivity
charges of ` 2 Lakh/MW, i.e., on ` 563 Lakh/MW (=` 565 Lakh/MW- ` 2
Lakh/MW. Accordingly, for arriving at the capital cost for FY 2015-16,
connectivity charges are to be added back the to this escalated cost.
31.
In accordance to the above, the normative capital cost for FY 2015-16
works out to be ` 579.00 Lakh/MW, which is inclusive of the cost of
transmission system including pooling station upto the interconnection
point and also includes ` 2.00 Lakh/MW for grid connectivity charges
payable to Transmission licensee for the FY 2015-16. The detailed
calculations of the indexation mechanism and determination of
capital cost for FY 2015-16 thereof, are available at Annexure-III.
Debt-Equity Ratio
32.
The Debt-Equity ratio of 70:30 as envisaged at regulation 15 of the
RERC RE Tariff Regulations, 2014 has been taken for working out the
debt
and
equity
components
of
normative
capital
cost
for
determination of levellised generic tariff.
Capacity Utilisation Factor (CUF) & de-ration in CUF
33.
Regulation 24(1) of the RERC RE Tariff Regulations, 2014 provides for
CUF of 21% for Jaisalmer, Jodhpur and Barmer districts and 20% for
other districts. Further, regulation 24(2) of the said Regulations also
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stipulates a de-ration of 1.25% from 6th, 10th, 14th & 18th year in the
above CUFs. Accordingly, CUFs along with de-ration have been taken.
Operation & Maintenance (O&M) Expenses
34.
Normative O&M expenses have been taken as ` 7.87 Lakh/MW for
Wind Power Plants for FY 2014-15 in accordance with regulation 25(1)
of the RERC RE Tariff Regulations, 2014 and same have been escalated
at the rate of 5.85% for arriving at O&M expenses for FY 2015-16 as `
8.33 Lakh/MW. Further, the O&M Expenses have been escalated @
5.85% over the tariff period for computation of the levellised tariff, for
the plants to be commissioned in FY 2015-16 as per the regulation 25(2)
of the RERC RE Tariff Regulations, 2014.
Depreciation
35.
In accordance with regulation 14 of the RERC RE Tariff Regulations,
2014, the rate of the depreciation for the first 12 years has been
considered as 5.83% of the capital cost per annum and from 13th year
onwards, the remaining depreciable value has been spread over the
balance useful life of the wind power plant and transmission system.
Interest rate on long term loan
36.
In accordance with sub-regulation (1) of regulation 13 of the RERC RE
Tariff Regulations, 2014, the loan tenure of 12 years has been
considered for the purpose of determination of generic tariff for Wind
Power Plants. Sub-regulation (2) of regulation 13 of the said Regulations
further provides for the interest rate on long term loans as 300 basis
points higher than the average State Bank of India (SBI) base rate
prevalent during first six months of the year previous to the relevant
year.
37.
Accordingly, the average SBI base rate obtained from official website
of SBI, prevalent during first six months of the year FY 2014-15 has been
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considered for computation of applicable interest rate, as shown in the
table below:
Table-1: Average SBI base rate during first six months of FY 2014-15
Period from
Period to
1.04.2014
30.09.2014
Average SBI Base rate for FY 2014-15
38.
Base rate
10%
10%
No. of days
183
183
In terms of the above, the interest rate of 13.00% (=10.00%+3.00%) has
been used for computation of interest on long term loan in generic
tariff computations, treating loan as 70% of the capital cost.
Interest on working capital requirement
39.
For the purpose of working capital requirement, the composition of
working capital has been taken as per regulation 16(1) of the RERC RE
Tariff Regulations, 2014.
40.
In accordance with regulation 16(2) of RERC RE Tariff Regulations 2014,
the interest rate on working capital for Wind Power Plants has been
taken as 250 basis points higher than the average of SBI Base rate
prevalent during first six months of FY 14-15, which works out to be
12.50% (=10.00%+2.50%). Accordingly, a rate of 12.50% has been taken
as interest rate on working capital requirements.
Return on Equity
41.
Regulation 15(2) of the RERC RE Tariff Regulations, 2014 provides for 16%
Return on Equity on equity base of 30% determined in accordance with
regulation 12 of the said Regulations. As per regulation 15(3) of the
RERC RE Tariff regulations 2014, Return on Equity has been computed
by grossing up the base rate of 16% with tax rate equivalent to
Minimum Alternate Tax (MAT) for first 10 years from COD and normal
tax rate for remaining years of the project life. In line with the practice
followed during the previous control period, the MAT rate of 20.39% (=
18.5% MAT rate + 7% surcharge + 3% education cess) has been
WIND 2015-16
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considered for first year and a MAT rate of 19.06% ( = 18.5% MAT rate +
3% education cess) has been considered for remaining 9 years of the
first 10 years. For remaining 15 years of plant life (also equal to useful
life), the normal tax rate of 30.90% (= 30% tax rate + 3% education cess)
has been applied for grossing up of the base rate of Return on Equity.
Subsidy or Incentive by the Central Government, including Accelerated
Depreciation
42.
As per the regulation 21 of the RERC RE Tariff Regulations, 2014, the
Commission shall take into consideration any incentive or subsidy or
benefit available from Central or State Government, including
accelerated or higher depreciation benefit, if availed by the
generating company, for the renewable energy power plants while
determining the tariff under these Regulations. Further, the Generation
Based Incentive/Tariff Subsidy, if allowed by the Central/ State Govt.,
would be governed by the terms and conditions of such scheme.
43.
For the purpose of determining the accelerated depreciation (AD)
benefit, as dealt earlier, the depreciation as per the Regulations (5.83%
for 12 years and 2.50% for the remaining useful life)( as also allowed
under
the
Companies
Act,2013)
has
been
compared
with
depreciation rate as per Income Tax Act, i.e., 80% of the written down
value vide GoI Notification No.43/2014/F.No.152/1/2013-TPL S.O. 239(E)
dated 16.09.2014. However, in addition to this, an additional
depreciation of 20% has been allowed to the Wind Power Projects
during the first year in an amendment in the Finance Act, 2012. In this
computation, the capitalization has been considered during the
second half of the fiscal year, as provided at regulation 21 of the RERC
RE Tariff Regulations, 2014. The energy available in the second half of
the year has been taken as 30% of annual generation as the energy
availability from wind power plant in the second half of the year is
much lower than the first half, i.e., during April to September 70% and
WIND 2015-16
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30% in the second half of the year. The levellised generic tariff has been
worked out considering both the situations, viz., if accelerated
depreciation benefit is availed and if not availed.
Levellised Tariff
44.
The levellised tariff has been determined for the useful life of the Wind
Power Plants i.e. for 25 years. Therefore, PPA should be for 25 years.
45.
In light of the above position, the levellised generic tariff for Wind Power
Plants getting commissioned for FY 2015-16 has been determined as
under:
Table-2: Generic Tariff for Wind Power Plants getting commissioned during
FY 15-16
S.
No
Particulars
.
1
2
1
Wind Power Plants located in
Jaisalmer, Jodhpur & Barmer
districts
2
Wind Power Plants located in
districts other than Jaisalmer,
Jodhpur & Barmer districts.
46.
Tariff (`/kWh) if
AD benefit is
not availed
3
5.74
Tariff (`/kWh) if
AD benefit is
availed
4
5.14
6.02
5.39
For Wind Power Plant claiming the higher tariff worked out as above for
projects not availing accelerated depreciation benefit, Commission
considers it appropriate to lay down modalities as under:
(1) The PPA should include an undertaking of the Wind Power
generator that accelerated depreciation benefit would not be
availed for the generating plant/unit.
(2) The first bill raised by the Wind Power generator shall be
accompanied by an undertaking that accelerated depreciation
benefit shall not be claimed. Based on this, the applicable tariff
would be allowed.
WIND 2015-16
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(3) The claims of energy charges as per applicable tariff may be
entertained based on the said undertaking upto the due date of
filing of Income Tax Return of the relevant financial year.
This
would mean 30th September, 2015 for payment for the financial
year 14-15 and for the first six months (upto 30th September) of
financial year 15-16 and so on.
(4) After filing of Income Tax Return a certificate from a Chartered
Accountant (CA) that accelerated depreciation has not been
claimed would have to be submitted or in the alternative a copy
of Income Tax Return filed with Income Tax Department wherein it
is shown that accelerated depreciation has not been claimed
along with verification of Tax Consultant may be furnished.
(5) As Income Tax Return is required to be filed in the next year, the
payment
of
amount
corresponding
to
non-availment
of
accelerated depreciation in respect of energy supplied in the
month of October onwards of the financial year following the
financial year of commissioning of the plant would be made only
after the said certificate/copy of Income Tax Return is furnished.
(6) For the energy supplied in the months of October onwards, the
methodology as given in sub-paras (4) & (5) above be followed.
47.
Commission also considers it appropriate that undertaking of the Wind
Power
generator
in
PPA
stating
that
benefit
of
accelerated
depreciation would not be claimed should also include an undertaking
that in case it is found that benefit of accelerated depreciation has
been claimed, as per third proviso to regulation 21 of the RERC RE Tariff
Regulations 2014, the distribution licensee shall be entitled to recover
the amount wrongly claimed by the Wind Power generator along with
penal charges @ 1.50% per month calculated on daily basis.
48.
Similarly, annual undertaking would need to be furnished if CDM
benefit is not availed. However, if CDM benefit is availed, it would have
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to be shared between the distribution licensee and generating
company as envisaged in regulation 20 of the RE RERC Tariff
Regulations 2014.
49.
The metering arrangement shall be as per regulation 37 of the RERC RE
Tariff Regulations, 2014.
50.
Commission in exercise of its power conferred under Section 62 read
with Section 64 of the Electricity Act,2003 and the RERC RE Tariff
Regulations, 2014 determines the generic tariff of Wind Power Plants as
detailed in Annexure-IV and Annexure-V.
51.
The above Tariff is applicable for the Wind Power Plants commissioned
on or after 1.04.2015 and till 31.03.2016.
52.
Copy of this order may be sent to the State Government, Central
Electricity Authority (CEA), Rajasthan Renewable Energy Corporation
Ltd (RREC), Distribution Licensees and all stakeholders.
(Raghuvendra Singh)
Member
WIND 2015-16
(Vinod Pandya)
Member
(Vishvanath Hiremath)
Chairman
Page 16 of 16
Annexure-I
List of Stakeholders, who submitted their suggestions/comments:
1. M/s Orange Jaisalmer Wind Energy Pvt. Ltd.
2. M/s Rudraksh Energy
3. M/s Mytrah Energy (India) Ltd.
4. M/s Inox Wind Ltd.
5. M/s Wind World (India) Ltd.
6. Indian Wind Energy Association (InWEA)
7. Indian Wind Turbine Manufacturers Association (IWTMA)
8. M/s Green Infra Ltd.
9. M/s Prayas (Energy Group)
10. Sh. RP Mishra
11. M/s Tanot Wind Power Ventures Pvt. Ltd. (Greenko)
12. M/s Tata Power Company Ltd.
13. Jaipur Vidyut Vitran Nigam Ltd. (JVVNL)
Annexure-II
Calculation of Discount Factor for FY 2015-16 as per RERC (Terms and
Conditions for Determination of Tariff for Renewable Energy Sources - Wind
and Solar Energy) (First Amendment) Regulations, 2015:
DF = ((IR * DC * (1-IT)) + (ROE * EC)
= ((13.00 * 0.70 * (1- 33.06%)) + (16 * 0.30)
= 10.89%
Where,
DF = Discount Factor,
IR = Interest rate in percentage,
DC = Debt Component,
IT = Income tax rate,
ROE = Return of Equity in percentage,
EC = Equity Component
ANNEXURE-III
Capital Cost Indexation for Wind Power Projects (FY 2015-16)
Indexation Formula
CC(n)
= P&M(n)*[1+F1+F2+F3] =
d(n)
= (a*(SI(n-1)/ SI(0))-1)+b*( EI(n-1)/ EI(0))-1))/(a+b)
P&M(n) = P&M(0)*(1+d(n))
Variable
a
b
F1
F2
F3
Description
Weightage for Steel Index
Weightage for Electrical Machinery Index
Factor for land and civil work
Factor for Erection and Commissioning
Factor for IDC and Financing
Month/Year
January
February
March
April
May
June
July
August
September
October
November
December
Average
Parameters
Capital cost
(` L/MW)
CC(0) (` L/MW)
P&M(0) (` L/MW)
d(n)
P&M(n) (` L/MW)
Electrical Machinery
2014
2013
137.4
133.9
137.8
133.8
138.4
134.1
138.4
134.5
138.6
135.5
138.6
135.6
138.8
135.6
138.4
135.7
138.6
136.3
138.7
137.1
138.7
137.5
138.6
137.8
138.42
135.617
Value
0.60
0.40
0.08
0.07
0.10
Steel
2014
126.2
126.2
126.2
135.1
129.6
130.6
130.5
130.9
130.9
130.9
130.9
128.3
129.69
Description
Capital Cost for the base year FY 2014-15
Capital Cost – connectivity charges ` 2
L/MW
Plant and Machinery cost for the base year
Capital Cost escalation factor
Plant and Machinery cost for the nth year
(FY 2015-16)
Escalated CC(0) for the nth year (FY 2015-16)
CC(n) + connectivity charges ` 2 L/MW
2013
126.2
126.2
126.2
126.2
126.2
126.2
126.2
126.2
126.2
126.2
126.2
126.2
126.2
Value
565.00
563
450.40
2.49%
461.60
CC(n) (` L/MW)
577.00
Capital cost
579.00
(` L/MW)
Source of WPI (Steel and Electrical Machinery): Office of Economic Advisor,
Ministry of Commerce and Industry (www.eaindustry.nic.in)
TARIFF FOR WIND POWER PLANTS LOCATED IN JAISALMER,BARMER & JODHPUR DISTRICTS FY 2015-16
Annexure-IV
Levelised Tariff (Rs/kWh) without HD
Levelised Tariff (Rs/kWh) without HD (Rounding off)
Accelerated Depreciation benefit (Rs/kWh)
Levelised Tariff (Rs/kWh) with HD
Levelised Tariff (Rs/kWh) with HD (Rounding off)
Case Select
Assumption
Head
S. No.
1
Sub-Head
5.7354
5.74
0.5981
5.1373
5.14
Option
Sub-Head (2)
Unit
1
Base Case
Power Generation
Capacity
Installed Power Generation Capacity
CUF
Deration factor
Life of Transmission system
Life of Power Plant
2 Project Cost
Capital Cost/MW
Project Cost
MW
%
%
Years
Years
inc Land,Trans &Connectivity charges (Rs 2 Lacs)
Rs Lakh/MW
Power Plant Cost + Transmission charges
Rs Lakh/MW
Coonectivity charges
Rs Lakh/MW
1
21%
1.25
35
25
579.00
577.00
2.00
3 Sources of Funds
Debt: Equity
4
Debt
%
Equity
%
Total Debt Amount
Rs Lakh
Total Equity Amout
Rs Lakh
Funding Options-1 (Domestic Loan Source-1)
Loan Amount
Rs Lakh
Moratorium Period
years
Interest Rate
%
Loan repayment per annum
Rs Lakh
Funding Options-2 ( Equity Finance )
Equity amount
Rs Lakh
Return on Equity
% p.a
Discount Rate (As per CERC Notification 7.10.2013)
Financial Assumptions
Fiscal Assumptions
Income Tax (for yr-11 to yr-25)
%
MAT Rate (for yr-1)
%
MAT Rate (for yr-2 to yr-10)
%
80 IA benefits
Yes/No
Accelerated Depreciation benefit
Rs/kWh
Depreciation
Depreciation Rate
%
Years for 5.83% rate
Years
70%
30%
405.30
174
405.30
0
13.00%
33.77
174
16.00%
10.89%
30.90%
20.39%
19.06%
Yes
0.60
5.83%
12
5 Working Capital Requirement
O&M Charges
Maintenance Spare
(% of O&M expenses)
Receivables for Debtors
Interest On Working Capital
6 Operation & Maintenance Expenses (2015-16)
Total O&M Expenses
Rs Lakh/MW
Total O & M Expenses Escalation
Months
%
Months
%
Rs Lakh/MW
%
Months of Operations
MU
Working Hours/Day
Hrs
No. of Days
Days
Total No. of Hours
Hrs
1
15%
1.5
12.50%
8.33
5.85%
12
24
365
8760
TARIFF FOR WIND POWER PLANTS LOCATED IN JAISALMER,BARMER
& JODHPUR
FY 2015-16
1
0.902
0.813
0.733 DISTRICTS
0.661 0.596
0.538
Units Generation
Unit
Deration in capacity
Installed Capacity
%
MW
Generation
MU
Year--->
2
0%
3
0%
4
0%
5
0%
6
7
1.25% 1.25%
8
1.25%
0.437
9
1.25%
0.394
10
2.50%
0.356
0.321
0.289
0.261
0.235
0.212
0.191 Annexure-IV
0.172
0.156 contd…
0.140
11
12
13
14
15
16
17
18
19
20
2.50% 2.50% 2.50% 3.75% 3.75% 3.75% 3.75% 5.00% 5.00% 5.00%
0.126
0.114
0.103
21
22
23
5.00% 5.00% 5.00%
0.093
24
5.00%
0.084
25
5.00%
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1.84
1.84
1.84
1.84
1.84
1.82
1.82
1.82
1.82
1.79
1.79
1.79
1.79
1.77
1.77
1.77
1.77
1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75
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
O&M Expenses
Rs Lakh
8.33
8.82
9.33
9.88
10.46
11.07
11.72
12.40
13.13
13.90
14.71
15.57
16.48
17.44
18.46
19.54
20.69
21.90
23.18
24.54
25.97
27.49
29.10
30.80
32.60
Depreciation
Rs Lakh
33.77
33.77
33.77
33.77
33.77
33.77
33.77
33.77
33.77
33.77
33.77
33.77
8.91
8.91
8.91
8.91
8.91
8.91
8.91
8.91
8.91
8.91
8.91
8.91
8.91
Interest on term loan
Rs Lakh
50.49
46.10
41.71
37.32
32.93
28.54
24.15
19.76
15.37
10.98
6.59
2.20
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Interest on working Capital Rs Lakh
2.27
2.21
2.17
2.12
2.08
2.04
2.00
1.96
1.92
1.89
1.95
1.92
1.53
1.57
1.62
1.67
1.72
1.78
1.83
1.90
1.96
2.03
2.10
2.18
2.26
Return on Equity
Rs Lakh
34.91
34.33
34.33
34.33
34.33
34.33
34.33
34.33
34.33
34.33
40.22
40.22
40.22
40.22
40.22
40.22
40.22
40.22
40.22
40.22
40.22
40.22
40.22
40.22
40.22
Total Cost of generation
Rs Lakh
129.78
125.24
121.32
117.43
113.58 109.76 105.97
102.23
98.53
94.87
97.24
93.68
67.14
68.14
69.21
70.34
71.54
72.80
74.14
75.56
77.06
78.65
80.33
82.11
83.99
7.05
6.81
6.60
6.38
5.63
5.42
5.29
5.42
5.22
3.74
3.85
3.91
3.97
4.04
4.17
4.24
4.32
4.41
4.50
4.60
4.70
4.81
Cost of generation
Unit
Year--->
1
0%
0.485
Per unit Cost of generation Rs/kWh
Levellised Tariff (Rs/kWh)
5.74
6.17
6.04
5.83
25 years
Note(s):
1.Levelised tariff has been worked out by carrying out levelisation over 25 years and with normative debt equity ratio (70:30).
2. Figures may not tally exactly on account of rounding of .
TARIFF FOR WIND POWER PLANTS LOCATED IN JAISALMER,BARMER & JODHPUR DISTRICTS FY 2015-16
Determination of Higher Depreciation Benefit for Wind Power Projects
Depreciation amount
90%
Book Depreciation rate
Annexure-IV
contd...
5.83%
Tax Depreciation rate
80%
Additional depreciation rate
applicable during first year
20%
Income Tax
33.06%
Capital Cost
579.00 Rs Lakh/MW
30.90% (yr-2 onwards)
Year(s)-->
Unit
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Depreciation
%
2.92%
5.83%
5.83%
5.83%
5.83%
5.83%
5.83%
5.83%
5.83%
5.83%
5.83%
5.83%
1.54%
1.54%
1.54%
1.54%
1.54%
1.54%
1.54%
Depreciation
Rs Lacs
16.88
33.76
33.76
33.76
33.76
33.76
33.76
33.76
33.76
33.76
33.76
33.76
8.93
8.93
8.93
8.93
8.93
8.93
8.93
Higher Depreciation Benefit
Opening balance
Allowed during the year
Closing
Higher depreciation
Net depreciation benefit
100.00%
%
50.00%
%
50.00%
%
289.50
Rs Lacs
Rs Lacs 272.62
50.00%
45.00%
5.00%
260.55
5.00%
4.00%
1.00%
23.16
1.00%
0.80%
0.20%
4.63
0.20%
0.16%
0.04%
0.93
0.04%
0.03%
0.01%
0.19
0.01%
0.01%
0.00%
0.04
0.00%
0.00%
0.00%
0.01
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
226.79
(10.60)
(29.12) (32.83)
(33.57)
(33.72)
(33.75) (33.75) (33.76) (33.76) (33.76)
(8.93)
(8.93)
(8.93)
(8.93)
(8.93)
Tax Benefit
Rs Lacs
90.14
70.08
(3.27)
(9.00) (10.14)
(10.37)
(10.42)
(10.43) (10.43) (10.43) (10.43) (10.43)
(2.76)
(2.76)
(2.76)
(2.76)
(2.76)
Discounted Tax Benefit
Rs Lacs
90.14
66.64
(2.81)
(6.96)
(6.52)
(5.91)
(0.84)
(0.76)
(0.68)
(0.62)
(0.56)
Levelised tax benefit
Rs Lacs
10.05
Energy Generation
MU
0.55
1.84
1.84
1.84
1.84
1.82
1.82
1.82
1.82
1.79
1.79
1.79
1.79
1.77
1.77
1.77
1.77
1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75
Discounted Generation
MU
0.55
1.75
1.58
1.42
1.28
1.14
1.03
0.93
0.84
0.75
0.67
0.61
0.55
0.49
0.44
0.40
0.36
0.32
0.29
0.26
0.23
0.21
0.19
0.17
0.15
Levelised generation
MU
Per Unit Benefit
Rs/kWh
3.81
(0.16) (0.16)
(7.07)
(5.33)
(4.81)
(4.34)
(3.91)
(3.53)
21
22
23
24
25
1.54% 1.54%
20
1.54%
1.54%
1.54%
1.54%
8.93
8.93
8.93
8.93
8.93
0.00%
0.00%
0.00%
0.00
0.00% 0.00%
0.00% 0.00%
0.00% 0.00%
0.00
0.00
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
(8.93)
(8.93)
(8.93) (8.93)
(8.93)
(8.93)
(8.93)
(8.93)
(2.76)
(2.76)
(2.76) (2.76)
(2.76)
(2.76)
(2.76)
(2.76)
(0.50)
(0.45)
(0.41) (0.37)
(0.33)
(0.30)
(0.27)
(0.24)
8.93
1.68
(0.18)
(0.49)
(0.55)
(0.57)
(0.57)
(0.57)
(0.57)
(0.58)
(0.58)
(0.58)
(0.15)
(0.16)
(0.16)
(0.16)
(0.16)
(0.16)
(0.16)
(0.16)
(0.16)
(0.16)
(0.16)
Discount Factor
1.00
0.90
0.81
0.73
0.66
0.60
0.54
0.48
0.44
0.39
0.36
0.32
0.29
0.26
0.24
0.21
0.19
0.17
0.16
0.14
0.13
0.11
0.10
0.09
0.08
Applicable Discount Factor
1.00
0.95
0.86
0.77
0.70
0.63
0.57
0.51
0.46
0.42
0.38
0.34
0.30
0.28
0.25
0.22
0.20
0.18
0.16
0.15
0.13
0.12
0.11
0.10
0.09
Levelised ITAX benefit
16.33
Rs/kWh
0.60
Note(s):
1.In the above calculations, depreciation for the first year has been considered as 50%(= 50% of (80%+20%)) as per CERC methodology
2. Generation for the first year has been considered as 30% of the normative generation for the second half of the financial year.
3. For working out Tax benefit, income tax rate for the first year has been considered as 33.06% and 30.90% has been considered for remaining useful life.
4. Figures may not tally exactly on account of rounding off.
TARIFF FOR WIND POWER PLANTS LOCATED IN DISTRICTS OTHER THAN JAISALMER,BARMER & JODHPUR FY 2015-16
Annexure-V
Levelised Tariff (Rs/kWh) without HD
Levelised Tariff (Rs/kWh) without HD (Rounding off)
Accelerated Depreciation benefit (Rs/kWh)
Levelised Tariff (Rs/kWh) with HD
Levelised Tariff (Rs/kWh) with HD (Rounding off)
Case Select
Assumption
Head
S. No.
1
Sub-Head
6.0222
6.02
0.6280
5.3942
5.39
Option
Sub-Head (2)
Unit
2
Base Case
Power Generation
Capacity
Installed Power Generation Capacity
CUF
Deration factor
Life of Transmission system
Life of Power Plant
2 Project Cost
Capital Cost/MW
Project Cost
MW
%
%
Years
Years
inc Land,Trans &Connectivity charges (Rs 2 Lacs)
Rs Lakh/MW
Power Plant Cost + Transmission charges
Rs Lakh/MW
Coonectivity charges
Rs Lakh/MW
1
20%
1.25
35
25
579.00
577.00
2.00
3 Sources of Funds
Debt: Equity
4
Debt
%
Equity
%
Total Debt Amount
Rs Lakh
Total Equity Amout
Rs Lakh
Funding Options-1 (Domestic Loan Source-1)
Loan Amount
Rs Lakh
Moratorium Period
years
Interest Rate
%
Loan repayment per annum
Rs Lakh
Funding Options-2 ( Equity Finance )
Equity amount
Rs Lakh
Return on Equity
% p.a
Discount Rate (As per CERC Notification 7.10.2013)
Financial Assumptions
Fiscal Assumptions
Income Tax (for yr-11 to yr-25)
%
MAT Rate (for yr-1)
%
MAT Rate (for yr-2 to yr-10)
%
80 IA benefits
Yes/No
Accelerated Depreciation benefit
Rs/kWh
Depreciation
Depreciation Rate
%
Years for 5.83% rate
Years
70%
30%
405.30
174
405.30
0
13.00%
33.77
174
16.00%
10.89%
30.90%
20.39%
19.06%
Yes
0.63
5.83%
12
5 Working Capital Requirement
O&M Charges
Maintenance Spare
(% of O&M expenses)
Receivables for Debtors
Interest On Working Capital
6 Operation & Maintenance Expenses (2015-16)
Total O&M Expenses
Rs Lakh/MW
Total O & M Expenses Escalation
Months
%
Months
%
Rs Lakh/MW
%
Months of Operations
MU
Working Hours/Day
Hrs
No. of Days
Days
Total No. of Hours
Hrs
1
15%
1.5
12.50%
8.33
5.85%
12
24
365
8760
TARIFF FOR WIND POWER PLANTS LOCATED IN DISTRICTS
OTHER THAN
& JODHPUR
2015-16
1
0.902
0.813 JAISALMER,BARMER
0.733
0.661 0.596
0.538 FY0.485
0.437
Units Generation
Unit
Deration in capacity
Installed Capacity
%
MW
Generation
MU
Year--->
2
0%
3
0%
4
0%
5
0%
6
7
1.25% 1.25%
8
1.25%
9
1.25%
10
2.50%
0.356
0.321
0.289
0.261
0.235
0.212
0.191 Annexure-V
0.172
0.156 contd…
0.140
11
12
13
14
15
16
17
18
19
20
2.50% 2.50% 2.50% 3.75% 3.75% 3.75% 3.75% 5.00% 5.00% 5.00%
0.126
0.114
0.103
21
22
23
5.00% 5.00% 5.00%
0.093
24
5.00%
0.084
25
5.00%
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1.75
1.75
1.75
1.75
1.75
1.73
1.73
1.73
1.73
1.71
1.71
1.71
1.71
1.69
1.69
1.69
1.69
1.66
1.66
1.66
1.66
1.66
1.66
1.66
1.66
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
O&M Expenses
Rs Lakh
8.33
8.82
9.33
9.88
10.46
11.07
11.72
12.40
13.13
13.90
14.71
15.57
16.48
17.44
18.46
19.54
20.69
21.90
23.18
24.54
25.97
27.49
29.10
30.80
32.60
Depreciation
Rs Lakh
33.77
33.77
33.77
33.77
33.77
33.77
33.77
33.77
33.77
33.77
33.77
33.77
8.91
8.91
8.91
8.91
8.91
8.91
8.91
8.91
8.91
8.91
8.91
8.91
8.91
Interest on term loan
Rs Lakh
50.49
46.10
41.71
37.32
32.93
28.54
24.15
19.76
15.37
10.98
6.59
2.20
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Interest on working Capital Rs Lakh
2.27
2.21
2.17
2.12
2.08
2.04
2.00
1.96
1.92
1.89
1.95
1.92
1.53
1.57
1.62
1.67
1.72
1.78
1.83
1.90
1.96
2.03
2.10
2.18
2.26
Return on Equity
Rs Lakh
34.91
34.33
34.33
34.33
34.33
34.33
34.33
34.33
34.33
34.33
40.22
40.22
40.22
40.22
40.22
40.22
40.22
40.22
40.22
40.22
40.22
40.22
40.22
40.22
40.22
Total Cost of generation
Rs Lakh
129.78
125.24
121.32
117.43
113.58 109.76 105.97
102.23
98.53
94.87
97.24
93.68
67.14
68.14
69.21
70.34
71.54
72.80
74.14
75.56
77.06
78.65
80.33
82.11
83.99
7.41
7.15
6.92
6.70
5.91
5.69
5.55
5.69
5.48
3.93
4.04
4.10
4.17
4.24
4.37
4.45
4.54
4.63
4.73
4.83
4.93
5.05
Cost of generation
Unit
Year--->
1
0%
0.394
Per unit Cost of generation Rs/kWh
Levellised Tariff (Rs/kWh)
6.02
6.48
6.34
6.13
25 years
Note(s):
1.Levelised tariff has been worked out by carrying out levelisation over 25 years and with normative debt equity ratio (70:30).
2. Figures may not tally exactly on account of rounding of .
TARIFF FOR WIND POWER PLANTS LOCATED IN DISTRICTS OTHER THAN JAISALMER,BARMER & JODHPUR FY 2015-16
Determination of Higher Depreciation Benefit for Wind Power Projects
Depreciation amount
90%
Book Depreciation rate
Annexure-V
contd...
5.83%
Tax Depreciation rate
80%
Additional depreciation rate
applicable during first year
20%
Income Tax
33.06%
Capital Cost
579.00 Rs Lakh/MW
30.90% (yr-2 onwards)
Year(s)-->
Unit
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Depreciation
%
2.92%
5.83%
5.83%
5.83%
5.83%
5.83%
5.83%
5.83%
5.83%
5.83%
5.83%
5.83%
1.54%
1.54%
1.54%
1.54%
1.54%
1.54%
1.54%
Depreciation
Rs Lacs
16.88
33.76
33.76
33.76
33.76
33.76
33.76
33.76
33.76
33.76
33.76
33.76
8.93
8.93
8.93
8.93
8.93
8.93
8.93
Higher Depreciation Benefit
Opening balance
Allowed during the year
Closing
Higher depreciation
Net depreciation benefit
100.00%
%
50.00%
%
50.00%
%
289.50
Rs Lacs
Rs Lacs 272.62
50.00%
45.00%
5.00%
260.55
5.00%
4.00%
1.00%
23.16
1.00%
0.80%
0.20%
4.63
0.20%
0.16%
0.04%
0.93
0.04%
0.03%
0.01%
0.19
0.01%
0.01%
0.00%
0.04
0.00%
0.00%
0.00%
0.01
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
226.79
(10.60)
(29.12) (32.83)
(33.57)
(33.72)
(33.75) (33.75) (33.76) (33.76) (33.76)
(8.93)
(8.93)
(8.93)
(8.93)
(8.93)
Tax Benefit
Rs Lacs
90.14
70.08
(3.27)
(9.00) (10.14)
(10.37)
(10.42)
(10.43) (10.43) (10.43) (10.43) (10.43)
(2.76)
(2.76)
(2.76)
(2.76)
(2.76)
Discounted Tax Benefit
Rs Lacs
90.14
66.64
(2.81)
(6.96)
(6.52)
(5.91)
(0.84)
(0.76)
(0.68)
(0.62)
(0.56)
Levelised tax benefit
Rs Lacs
10.05
Energy Generation
MU
0.53
1.75
1.75
1.75
1.75
1.73
1.73
1.73
1.73
1.71
1.71
1.71
1.71
1.69
1.69
1.69
1.69
1.66
1.66
1.66
1.66
1.66
1.66
1.66
1.66
Discounted Generation
MU
0.53
1.67
1.50
1.35
1.22
1.09
0.98
0.88
0.80
0.71
0.64
0.58
0.52
0.46
0.42
0.38
0.34
0.30
0.27
0.25
0.22
0.20
0.18
0.16
0.15
Levelised generation
MU
Per Unit Benefit
Rs/kWh
4.00
(0.17) (0.17)
(7.07)
(5.33)
(4.81)
(4.34)
(3.91)
(3.53)
21
22
23
24
25
1.54% 1.54%
20
1.54%
1.54%
1.54%
1.54%
8.93
8.93
8.93
8.93
8.93
0.00%
0.00%
0.00%
0.00
0.00% 0.00%
0.00% 0.00%
0.00% 0.00%
0.00
0.00
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00
(8.93)
(8.93)
(8.93) (8.93)
(8.93)
(8.93)
(8.93)
(8.93)
(2.76)
(2.76)
(2.76) (2.76)
(2.76)
(2.76)
(2.76)
(2.76)
(0.50)
(0.45)
(0.41) (0.37)
(0.33)
(0.30)
(0.27)
(0.24)
8.93
1.60
(0.19)
(0.51)
(0.58)
(0.60)
(0.60)
(0.60)
(0.60)
(0.61)
(0.61)
(0.61)
(0.16)
(0.16)
(0.16)
(0.16)
(0.16)
(0.17)
(0.17)
(0.17)
(0.17)
(0.17)
(0.17)
Discount Factor
1.00
0.90
0.81
0.73
0.66
0.60
0.54
0.48
0.44
0.39
0.36
0.32
0.29
0.26
0.24
0.21
0.19
0.17
0.16
0.14
0.13
0.11
0.10
0.09
0.08
Applicable Discount Factor
1.00
0.95
0.86
0.77
0.70
0.63
0.57
0.51
0.46
0.42
0.38
0.34
0.30
0.28
0.25
0.22
0.20
0.18
0.16
0.15
0.13
0.12
0.11
0.10
0.09
Levelised ITAX benefit
17.15
Rs/kWh
0.63
Note(s):
1.In the above calculations, depreciation for the first year has been considered as 50%(= 50% of (80%+20%)) as per CERC methodology
2. Generation for the first year has been considered as 30% of the normative generation for the second half of the financial year.
3. For working out Tax benefit, income tax rate for the first year has been considered as 33.06% and 30.90% has been considered for remaining useful life.
4. Figures may not tally exactly on account of rounding off.