: Promoters Contribution : Term Loan Total Profitability at optimum level. : Optimum Utilization(3 rd Year)

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1 PROJECT SUMMARY 1 The Proposal : To set up a Small Hydroelectric Power Plant 2 Proposed Location of the project : The following factors need to be thoroughly examined before finalizing the location a. Water stock consistency during various seasons b. The head available c. Nearness to existing KSEB substation d. Population density (for assessing rehabilitation requirements) 3 Products/Services and installed capacity : 3 MW Capacity 4 Market : Consent from KSEB is required for the project. Also a power purchase agreement with KSEB needs to be executed after approval from Kerala State Electricity Regulator Commission (KSERC). 5 6 Plant & Machinery Cost of Project : The power plant equipments are proposed to be either procured indigenously or imported. Rs. : Land & Land Development (10 Acres on lease/ Rs. 5 lacs per acre, including Rs. 10 lacs rehabilitation charges) : Building & Civil Works and pipes : Plant & Machinery : Transmission Line : Prel. & Preoperative Expenses : Contingency : Total Means of Finance : Promoters Contribution : Term Loan Total Profitability at optimum level : Optimum Utilization(3 rd Year) 60% (% of installed capacity) : Sales Turnover (Rs. lakhs) : Profit before interest, depreciation & tax (Rs. lakhs) : Cash Profit (after interest) (Rs lakhs ) : Net Profit (PAT) (Rs. lakhs) Financial Indices : Debt Equity Ratio 1:1 : DSCR (average) 1.90 : Break Even Point % 36.75% : IRR (%)(for a period of 15 years) 15.40% : Pay Back period (Years) 5.35 : Moratorium 2 Year Implement ation Period + 1 Year 10 Manpower : 14 Persons 1

2 11 Implementation Period : Implementation period considered at 24 months PROJECT DETAILS THE PROPOSAL The proposal is to setup a 3 MW Hydro Electric Power Plant at a location suitable depending on various parameters. The major plant & machinery (turbine & generators) could be either indigenously procured or imported. The total cost of the project works out to approximately Rs lakhs. I. TECHNO ECONOMIC ASSESSMENT Concept The Small Hydro Power Plant (SHPP) can be set up in a major stream having continues flow of water in all seasons. The concept here is taking inlet water at a higher altitude in the stream and feeding back the water to the same stream at a lower altitude after passing through the turbine. No inter basin transfer of water is envisaged. A detailed study on the location for consistency of water availability in different seasons, head availability, nearness to KSEB substation and possible transmission line route etc. need to be thoroughly examined before finalizing the project location. Location & Site: The following factors need to be thoroughly examined before finalizing the location e. Water stock consistency during various seasons f. The head available g. Nearness to existing KSEB substation h. Population density (for accessing rehabilitation requirements) 2

3 Cost of Project The total cost of the project envisaged is about Rs lakhs. The breakup of the cost is summarized below. Land & Land Development (10 Acres on lease/ Rs. 5 lacs per acre, including Rs. 10 lacs rehabilitation charges) Building & Civil Works Plant & Machinery Transmission Line Prel & Preoperative Expenses Contingency Total A broad break up on the cost of the project is as below Land Cost 1 10 Acres of Land (10 Acres on lease/ Rs. 5 lacs per acre + Rs. 10 lacs rehabilitation charges) Cost of Civil Works & Pipes 1 Diversion weir 2 Power Chanel 3 Desiliting Tank 4 Fore bay 5 Penstock ( Mtrs length depending on the head and horizontal length to the power house) 6 Power House Building Plant & Machinery : The major plant and machinery consists of : 1 Horizontal Francis Turbine & Generator (2 Units X 1.5 MW including Cost of design, test & supply and other auxiliary items ))

4 2 Switchyard Equipments & Communication systems Total Transmission Line 1 Power Transmission Line to nearest substation and transformer (Assumed 20 Rs. 6 Lacs per KM) 2 Transformers& accessories Total Prel. & Pre Operative Expense 1 TEF Study, Establishment Charges Etc. 2 Prel. Administration Charges (during implementation period) 3 Consultancy Charges Interest During Implementation 5 Margin Money for working capital (1 months operating expenses) Total Manpower: The total manpower requirement for the administration & maintenance of the facility is 14 numbers. The details of the employees with designation and numbers are given below: Managerial/Supervisory having technical background) 2 Skilled 6 Semi Skilled 2 Security Staff/Other Staff 4 Total 14 Implementation Period: A two year implementation period is envisaged. Means of Finance The means of finance proposed is as follows: Rs. in Promoters Term Loan Total

5 The Debt Equity Ratio works out to 1:1 for the project. Cost of operation and Profitability The assumptions underlying profitability estimates are given below. Items Norms & Assumptions I CAPACITY AT 100% Plant Capacity 3 MW Units saleable at 100% Capacity Mega Units II III Average Annual Capacity Utilization 1 st Yr 2 nd yr 3 rd Yr onwards 40% 50% 60% INCOME Average Unit Price Rs. 3.5/ KWH EXPENDITURE (100% capacity ; Major expenditure) Salary/Labor cost Rs lakhs for the first year Overheads Rs.25 lakhs/year, 5% increase is provided for subsequent years. Repairs & Maintenance charges 1.5% of fixed assets Insurance charges 0.25% of fixed assets. Profitability indicators are shown below Optimum Utilization(3 rd Year) 60% (% of installed capacity) Sales Turnover (Rs. lakhs) Profit before interest, depreciation & tax (Rs. lakhs) Cash Profit (after interest) (Rs lakhs ) Net Profit (PAT) (Rs. lakhs) Debt Equity Ratio 1:1 DSCR (average) 1.90 Break Even Point % 36.75% IRR (%)(for a period of 15 years) 15.40% Pay Back period (Years) 5.35 II. MARKET ASSESSMENT Consent from Kerala State Electricity Board has to be obtained for the project and a power purchase agreement with Kerala State Electricity Board need to be executed after approval from KSERC. 5

6 III. CONCLUSION The proposal is found to be technically feasible and economically viable. The selection of the project location has an important role for consistency in operation due to water availability. Disclaimer: The findings contained in this Project Profile are based on the initial information collated through primary and secondary research, which is indicative in nature. Reference herein to any specific commercial product,process, service by trade name,trademark, manufacturer, or otherwise, does not constitute or imply its endorsement, recommendation, or favoring byksidc or any entities thereof. 6