Info Report Check
Submission incomplete:
1: The DOE is requested to include validation opinion on the accuracy and completeness of the project description in the validation report as per VVM v1.2 paragraph 64(b).
The DOE has not reported the exact Geo-coordinates of the project site in the validation report.


2: The DOE is requested to include information on how it has validated the input values to the financial calculations as per VVM v 1.2 paragraph 114 (a).
In particular :
(i) annual escalation rate of 5% in O&M cost as the DOE has not reported on how it has assessed the suitability of annual escalation rate of 5% in O&M cost;
(ii) the royalty power/free power of 10%, the DOE is requested to report in detail how the royalty power/free power of 10% from the 15th year till 30th year is still valid and applicable to the project activity based on the Implementation Agreement date 18/11/2002;
(iii) subsidy of INR 41.25 million, please provide detail information regarding the subsidy.


3: The DOE is requested to provide information on how it has validated the suitability of the benchmark as per VVM v 1.2 paragraph 114 (b).
(1) As per the PDD (page 16) and the benchmark spreadsheet (benchmark tab_cell F11), the interest rate (Rd) used for the calculation of WACC is 11.5% whereas the validation report (page 15) refers to the interest rate of 10.75%. Please clarify this inconsistency. (2) Information is required on how the DOE has validated the suitability of vintage year for BSE-500 Index data and Beta value given that the vintage year of BSE-500 index data and beta value is only for 5 years (2002 to 2006) whereas the financial analysis is performed for a 20 year operation period.


4: The DOE is requested to identify if the FSR has been the basis of the investment decision as per VVM v 1.2 paragraph 113 (a).
The DOE is requested to report in detail that the detailed project report (dated Sep 2000), techno-economic clearance (dated 20/03/2002), CERC tariff order (dated 29/03/2004),HPERC model PPA (dated 24/03/2003) are the basis for investment decision given that the time gap between the investment decision (08/01/2007) / project starting date (07/04/2008) and dates of above documents is significantly long.


5: The DOE is requested to provide local and sectoral expertise on the suitability of the input values to the investment analysis as per VVM v 1.2 paragraph 113 (c).
The DOE shall report in detail that input values used in the investment analysis are valid and applicable at the time of investment decision.


6: The PDD must undergo global stakeholder consultation for 30 days or 45 days for large-scale forestation/Reforestation projects as per VVM v1.2, paragraph 40, 174 (c).
There is an inconsistency in the validation report regarding the reported date on which the PDD was made publicly available in accordance with the requirements of the procedure for global stakeholder consultation. The validation report (page 34) indicates that the GSC started for the period of 07/04/2010- 06/05/2010 whereas in page 25 of validation report the date is mentioned as 12/01/2009. Please clarify.