RAJASTHAN ELECTRICITY REGULATORY COMMISSION, JAIPURrerc.rajasthan.gov.in/TariffOrders/Order212.pdf · Rajasthan Patrika : ... (Rajasthan State Council) vs. Rajasthan Electricity Regulatory

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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.


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;


(4) Applicability of tariff ; and

(5) Competitive bidding in wind sector.

8. 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.


(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.


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,


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) Discounting Rate:

16. 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


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.


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.


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.


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


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.


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.


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:

(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.

28. 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 Base rate No. of days

1.04.2014 30.09.2014 10% 183

Average SBI Base rate for FY 2014-15 10% 183

38. 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

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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

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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

Tariff (`/kWh) if

AD benefit is

not availed

Tariff (`/kWh) if

AD benefit is

availed

1 2 3 4

1 Wind Power Plants located in

Jaisalmer, Jodhpur & Barmer

districts

5.74 5.14

2 Wind Power Plants located in

districts other than Jaisalmer,

Jodhpur & Barmer districts.

6.02 5.39

46. 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.

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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

(Vinod Pandya)

Member

(Vishvanath Hiremath)

Chairman

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

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 Description Value

a Weightage for Steel Index 0.60

b Weightage for Electrical Machinery Index 0.40

F1 Factor for land and civil work 0.08

F2 Factor for Erection and Commissioning 0.07

F3 Factor for IDC and Financing 0.10

Month/Year Electrical Machinery Steel

2014 2013 2014 2013

January 137.4 133.9 126.2 126.2

February 137.8 133.8 126.2 126.2

March 138.4 134.1 126.2 126.2

April 138.4 134.5 135.1 126.2

May 138.6 135.5 129.6 126.2

June 138.6 135.6 130.6 126.2

July 138.8 135.6 130.5 126.2

August 138.4 135.7 130.9 126.2

September 138.6 136.3 130.9 126.2

October 138.7 137.1 130.9 126.2

November 138.7 137.5 130.9 126.2

December 138.6 137.8 128.3 126.2

Average 138.42 135.617 129.69 126.2

Parameters Description Value

Capital cost

(` L/MW)

Capital Cost for the base year FY 2014-15 565.00

CC(0) (` L/MW) Capital Cost – connectivity charges ` 2

L/MW

563

P&M(0) (` L/MW) Plant and Machinery cost for the base year 450.40

d(n) Capital Cost escalation factor 2.49%

P&M(n) (` L/MW) Plant and Machinery cost for the nth year

(FY 2015-16)

461.60

CC(n) (` L/MW) Escalated CC(0) for the nth year (FY 2015-16) 577.00

Capital cost

(` L/MW)

CC(n) + connectivity charges ` 2 L/MW 579.00

Source of WPI (Steel and Electrical Machinery): Office of Economic Advisor,

Ministry of Commerce and Industry (www.eaindustry.nic.in)

ANNEXURE-III

TARIFF FOR WIND POWER PLANTS LOCATED IN JAISALMER,BARMER & JODHPUR DISTRICTS FY 2015-16

Annexure-IV

5.7354

5.74

0.5981

5.1373

5.14

Case Select Option 1

S. No.Assumption

HeadSub-Head Sub-Head (2) Unit Base Case

1 Power Generation

Capacity

Installed Power Generation Capacity MW 1

CUF % 21%

Deration factor % 1.25

Life of Transmission system Years 35

Life of Power Plant Years 25

2 Project CostCapital Cost/MW inc Land,Trans &Connectivity charges (Rs 2 Lacs)Rs Lakh/MW 579.00

Project Cost Power Plant Cost + Transmission charges Rs Lakh/MW 577.00

Coonectivity charges Rs Lakh/MW 2.00

3 Sources of Funds

Debt: Equity

Debt % 70%

Equity % 30%

Total Debt Amount Rs Lakh 405.30

Total Equity Amout Rs Lakh 174

Funding Options-1 (Domestic Loan Source-1)

Loan Amount Rs Lakh 405.30

Moratorium Period years 0

Interest Rate % 13.00%

Loan repayment per annum Rs Lakh 33.77

Funding Options-2 ( Equity Finance )

Equity amount Rs Lakh 174

Return on Equity % p.a 16.00%

Discount Rate (As per CERC Notification 7.10.2013) 10.89%

4 Financial Assumptions

Fiscal Assumptions

Income Tax (for yr-11 to yr-25) % 30.90%

MAT Rate (for yr-1) % 20.39%

MAT Rate (for yr-2 to yr-10) % 19.06%

80 IA benefits Yes/No Yes

Accelerated Depreciation benefit Rs/kWh 0.60

Depreciation

Depreciation Rate % 5.83%

Years for 5.83% rate Years 12

5 Working Capital Requirement

O&M Charges Months 1

Maintenance Spare (% of O&M expenses) % 15%

Receivables for Debtors Months 1.5

Interest On Working Capital % 12.50%

6 Operation & Maintenance Expenses (2015-16)

Total O&M Expenses Rs Lakh/MW Rs Lakh/MW 8.33

Total O & M Expenses Escalation % 5.85%

Months of Operations MU 12

Working Hours/Day Hrs 24

No. of Days Days 365

Total No. of Hours Hrs 8760

Levelised Tariff (Rs/kWh) without HD

Accelerated Depreciation benefit (Rs/kWh)

Levelised Tariff (Rs/kWh) with HD

Levelised Tariff (Rs/kWh) with HD (Rounding off)

Levelised Tariff (Rs/kWh) without HD (Rounding off)

TARIFF FOR WIND POWER PLANTS LOCATED IN JAISALMER,BARMER & JODHPUR DISTRICTS FY 2015-16 Annexure-IV contd…1 0.902 0.813 0.733 0.661 0.596 0.538 0.485 0.437 0.394 0.356 0.321 0.289 0.261 0.235 0.212 0.191 0.172 0.156 0.140 0.126 0.114 0.103 0.093 0.084

Units Generation Unit Year---> 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

Deration in capacity % 0% 0% 0% 0% 0% 1.25% 1.25% 1.25% 1.25% 2.50% 2.50% 2.50% 2.50% 3.75% 3.75% 3.75% 3.75% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%

Installed Capacity MW 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

Generation MU 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

Cost of generation Unit Year---> 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

Per unit Cost of generation Rs/kWh 7.05 6.81 6.60 6.38 6.17 6.04 5.83 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

Levellised Tariff (Rs/kWh) 5.74 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 .

Determination of Higher Depreciation Benefit for Wind Power Projects

Depreciation amount 90% Annexure-IV contd...

Book Depreciation rate 5.83%

Tax Depreciation rate 80%

Additional depreciation rate

applicable during first year

20%

Income Tax 33.06% 30.90% (yr-2 onwards)

Capital Cost 579.00 Rs Lakh/MW

Year(s)--> Unit 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

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% 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 8.93 8.93 8.93 8.93 8.93 8.93

Higher Depreciation Benefit

Opening balance % 100.00% 50.00% 5.00% 1.00% 0.20% 0.04% 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%

Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 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%

Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 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%

Higher depreciation Rs Lacs 289.50 260.55 23.16 4.63 0.93 0.19 0.04 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

Net depreciation benefit Rs Lacs 272.62 226.79 (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) (8.93) (8.93) (8.93) (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) (2.76) (2.76) (2.76) (2.76) (2.76) (2.76) (2.76) (2.76)

Discounted Tax Benefit Rs Lacs 90.14 66.64 (2.81) (6.96) (7.07) (6.52) (5.91) (5.33) (4.81) (4.34) (3.91) (3.53) (0.84) (0.76) (0.68) (0.62) (0.56) (0.50) (0.45) (0.41) (0.37) (0.33) (0.30) (0.27) (0.24)

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 1.68

Per Unit Benefit Rs/kWh 16.33 3.81 (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) (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 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

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.

TARIFF FOR WIND POWER PLANTS LOCATED IN JAISALMER,BARMER & JODHPUR DISTRICTS FY 2015-16

4. Figures may not tally exactly on account of rounding off.

2. Generation for the first year has been considered as 30% of the normative generation for the second half of the financial year.

TARIFF FOR WIND POWER PLANTS LOCATED IN DISTRICTS OTHER THAN JAISALMER,BARMER & JODHPUR FY 2015-16

Annexure-V

6.0222

6.02

0.6280

5.3942

5.39

Case Select Option 2

S. No.Assumption

HeadSub-Head Sub-Head (2) Unit Base Case

1 Power Generation

Capacity

Installed Power Generation Capacity MW 1

CUF % 20%

Deration factor % 1.25

Life of Transmission system Years 35

Life of Power Plant Years 25

2 Project CostCapital Cost/MW inc Land,Trans &Connectivity charges (Rs 2 Lacs)Rs Lakh/MW 579.00

Project Cost Power Plant Cost + Transmission charges Rs Lakh/MW 577.00

Coonectivity charges Rs Lakh/MW 2.00

3 Sources of Funds

Debt: Equity

Debt % 70%

Equity % 30%

Total Debt Amount Rs Lakh 405.30

Total Equity Amout Rs Lakh 174

Funding Options-1 (Domestic Loan Source-1)

Loan Amount Rs Lakh 405.30

Moratorium Period years 0

Interest Rate % 13.00%

Loan repayment per annum Rs Lakh 33.77

Funding Options-2 ( Equity Finance )

Equity amount Rs Lakh 174

Return on Equity % p.a 16.00%

Discount Rate (As per CERC Notification 7.10.2013) 10.89%

4 Financial Assumptions

Fiscal Assumptions

Income Tax (for yr-11 to yr-25) % 30.90%

MAT Rate (for yr-1) % 20.39%

MAT Rate (for yr-2 to yr-10) % 19.06%

80 IA benefits Yes/No Yes

Accelerated Depreciation benefit Rs/kWh 0.63

Depreciation

Depreciation Rate % 5.83%

Years for 5.83% rate Years 12

5 Working Capital Requirement

O&M Charges Months 1

Maintenance Spare (% of O&M expenses) % 15%

Receivables for Debtors Months 1.5

Interest On Working Capital % 12.50%

6 Operation & Maintenance Expenses (2015-16)

Total O&M Expenses Rs Lakh/MW Rs Lakh/MW 8.33

Total O & M Expenses Escalation % 5.85%

Months of Operations MU 12

Working Hours/Day Hrs 24

No. of Days Days 365

Total No. of Hours Hrs 8760

Levelised Tariff (Rs/kWh) without HD

Accelerated Depreciation benefit (Rs/kWh)

Levelised Tariff (Rs/kWh) with HD

Levelised Tariff (Rs/kWh) with HD (Rounding off)

Levelised Tariff (Rs/kWh) without HD (Rounding off)

TARIFF FOR WIND POWER PLANTS LOCATED IN DISTRICTS OTHER THAN JAISALMER,BARMER & JODHPUR FY 2015-16 Annexure-V contd…1 0.902 0.813 0.733 0.661 0.596 0.538 0.485 0.437 0.394 0.356 0.321 0.289 0.261 0.235 0.212 0.191 0.172 0.156 0.140 0.126 0.114 0.103 0.093 0.084

Units Generation Unit Year---> 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

Deration in capacity % 0% 0% 0% 0% 0% 1.25% 1.25% 1.25% 1.25% 2.50% 2.50% 2.50% 2.50% 3.75% 3.75% 3.75% 3.75% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%

Installed Capacity MW 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

Generation MU 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

Cost of generation Unit Year---> 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

Per unit Cost of generation Rs/kWh 7.41 7.15 6.92 6.70 6.48 6.34 6.13 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

Levellised Tariff (Rs/kWh) 6.02 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 .

Determination of Higher Depreciation Benefit for Wind Power Projects

Depreciation amount 90% Annexure-V contd...

Book Depreciation rate 5.83%

Tax Depreciation rate 80%

Additional depreciation rate

applicable during first year

20%

Income Tax 33.06% 30.90% (yr-2 onwards)

Capital Cost 579.00 Rs Lakh/MW

Year(s)--> Unit 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

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% 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 8.93 8.93 8.93 8.93 8.93 8.93

Higher Depreciation Benefit

Opening balance % 100.00% 50.00% 5.00% 1.00% 0.20% 0.04% 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%

Allowed during the year % 50.00% 45.00% 4.00% 0.80% 0.16% 0.03% 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%

Closing % 50.00% 5.00% 1.00% 0.20% 0.04% 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%

Higher depreciation Rs Lacs 289.50 260.55 23.16 4.63 0.93 0.19 0.04 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

Net depreciation benefit Rs Lacs 272.62 226.79 (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) (8.93) (8.93) (8.93) (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) (2.76) (2.76) (2.76) (2.76) (2.76) (2.76) (2.76) (2.76)

Discounted Tax Benefit Rs Lacs 90.14 66.64 (2.81) (6.96) (7.07) (6.52) (5.91) (5.33) (4.81) (4.34) (3.91) (3.53) (0.84) (0.76) (0.68) (0.62) (0.56) (0.50) (0.45) (0.41) (0.37) (0.33) (0.30) (0.27) (0.24)

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 1.60

Per Unit Benefit Rs/kWh 17.15 4.00 (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) (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 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

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.

TARIFF FOR WIND POWER PLANTS LOCATED IN DISTRICTS OTHER THAN JAISALMER,BARMER & JODHPUR FY 2015-16

4. Figures may not tally exactly on account of rounding off.

2. Generation for the first year has been considered as 30% of the normative generation for the second half of the financial year.

Documents

RAJASTHAN ELECTRICITY REGULATORY COMMISSION, JAIPURrerc.rajasthan.gov.in/TariffOrders/Order212.pdf · Rajasthan Patrika : ... (Rajasthan State Council) vs. Rajasthan Electricity Regulatory