08:25 25 Apr 24
Info Report Check
Submission incomplete:
1: The DOE is requested to include description of the process taken to validate the accuracy and completeness of the project description in VR as per VVM v1.2 paragraph 64(a).
The DOE is requested to provide further information on the validation of the the consumption of the electricity generated and whether it involves 3rd party sale or self use. Information is requested on the type of facility (HT consumer/commercial etc.) and the location details.
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).
The DOE is requested to provide further information on the following:
1. Total project cost considered in the financial analysis is for 18 turbines (supplier quotation dated 12/03/2010) whereas the project installs 16 turbines only.
2. O&M cost in the financial analysis is INR 2.1 million per turbine from 2nd year (1.75% of project cost) with 5% annual escalation each year. The DOE is requested to explain how it validated the O&M cost to be reasonable when it compared the assumptions to the MERC tariff order, 2003, which states 1.5% of the project cost for first three years and 2% of project cost from 4th year onwards.
3. Transmission and wheeling losses (4.85% and 6% respectively) have been considered from the MERC order, 2009. However, the tariff order dated 2003 considers losses to be 5% for transmission and 2% for wheeling.
4. Corporate Tax calculation, a) application of the 80 IA tax exemption between year 1 to year 15 since in the worksheet named 'IRR', tax is being paid at 33.22% from year 3 - year 8, and b) computation of the negative tax payable and subsequent PAT calculations for the years 1 & 2.
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).
The DOE is requested to provide more information on how it has validated a) the data vintage of the market return (Rm) in comparison to that of the risk free rate of return (Rf) and the project lifetime, both of which are 20 years, as well as the choice of the index, BSE 500, which had 11.4 years of market data available at the time of the investment decision.
b) the appropriateness of using levered beta values in the beta estimation. Information related to the choice of return interval (daily, weekly etc.) shall also be included.
4: The DOE is requested to explain how the comments received during the stakeholder consultation were considered as per VVM v1.2, paragraph 40, 174 (c).
The DOE is requested to provide information regarding how it considered the comment from Mr. Babloo (page 28 of validation report) stating, '' DOE to evaluate whether the PP has made any other investments considering the same index''.
1: The DOE is requested to include description of the process taken to validate the accuracy and completeness of the project description in VR as per VVM v1.2 paragraph 64(a).
The DOE is requested to provide further information on the validation of the the consumption of the electricity generated and whether it involves 3rd party sale or self use. Information is requested on the type of facility (HT consumer/commercial etc.) and the location details.
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).
The DOE is requested to provide further information on the following:
1. Total project cost considered in the financial analysis is for 18 turbines (supplier quotation dated 12/03/2010) whereas the project installs 16 turbines only.
2. O&M cost in the financial analysis is INR 2.1 million per turbine from 2nd year (1.75% of project cost) with 5% annual escalation each year. The DOE is requested to explain how it validated the O&M cost to be reasonable when it compared the assumptions to the MERC tariff order, 2003, which states 1.5% of the project cost for first three years and 2% of project cost from 4th year onwards.
3. Transmission and wheeling losses (4.85% and 6% respectively) have been considered from the MERC order, 2009. However, the tariff order dated 2003 considers losses to be 5% for transmission and 2% for wheeling.
4. Corporate Tax calculation, a) application of the 80 IA tax exemption between year 1 to year 15 since in the worksheet named 'IRR', tax is being paid at 33.22% from year 3 - year 8, and b) computation of the negative tax payable and subsequent PAT calculations for the years 1 & 2.
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).
The DOE is requested to provide more information on how it has validated a) the data vintage of the market return (Rm) in comparison to that of the risk free rate of return (Rf) and the project lifetime, both of which are 20 years, as well as the choice of the index, BSE 500, which had 11.4 years of market data available at the time of the investment decision.
b) the appropriateness of using levered beta values in the beta estimation. Information related to the choice of return interval (daily, weekly etc.) shall also be included.
4: The DOE is requested to explain how the comments received during the stakeholder consultation were considered as per VVM v1.2, paragraph 40, 174 (c).
The DOE is requested to provide information regarding how it considered the comment from Mr. Babloo (page 28 of validation report) stating, '' DOE to evaluate whether the PP has made any other investments considering the same index''.
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