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Kolhapur Green Energy Private Limited

KOLHAPUR GREEN ENERGY PRIVATE LIMITED

Registered Office: MET Educational Complex, 6th floor, “C” wing, A.K.Vaidya Marg,

Bandra Reclamation, Bandra (West), Mumbai- 400050

Tel: (91 22)- 6799 6000/61872400, Fax: (91 22) 67996015/61872455

CIN NO. : U40300MH2013PTC249945 Website: www.sunilhitech.com

PUBLIC NOTICE

Inviting Suggestions & Objections on Kolhapur Green Energy Pvt. Ltd’s Petition for determination of Tariff for sale of electricity generated from its 1.8 MW capacity Municipal Solid Waste based power project to be commissioned at Kolhapur to the Distribution Licensees in Maharashtra

1. Kolhapur Green Energy Private Limited (KGEPL) has filed a Petition (Case No 87 of 2015) for determination of Tariff for sale of electricity generated from its 1.8 MW capacity Municipal Solid Waste (MSW) based power project to be commissioned at Kolhapur to the Distribution Licensees in Maharashtra. The Petition is based on Sections 62(1)(a) and 86(1)(e) of EA 2003 , Regulation 8.1 and 8.2 of MERC (Terms and Conditions of Determination of RE Tariff) Regulations, 2015 and other relevant Regulations.

2. The Commission has admitted the Petition on 13 May, 2016 and directed KGEPL to publish a Public Notice under section 64(2) of the Electricity Act, 2003 inviting suggestions/objections from the public.

3. The salient features of the Petition are provided below:

Table 1: Cost Break-up for proposed 1.8MW Power Project at Kolhapur (Rs. Lakh)

S. No.

Project Cost

Amount

1.

Civil Work for Plant & Machinery

613.42

2.

Plant & Machinery

1666.68

3.

Total of Plant & Machinery (EPC cost)(l +2)

2280.10

4.

Add: Financing cost @ 1.50% of the EPC Cost

34.20

5.

Add: Preliminary and pre-operative expenses @ 4% of EPC Cost

91.20

6.

Add: Interest during construction

77.18

7.

Total Project Cost (3+4+5+6)

2482.68


Table 2: Parameter Assumptions

#

Assumption Head

Sub-Head

Sub-Head (2)

Value

Unit

1

Power Generation

       
   

Capacity

Installed Power Generation Capacity

1.8

MW

     

Capacity Utilization Factor (first year)

65

%

     

Capacity Utilization Factor (remaining period)

80

%

     

Commercial Operation Date (December 2016)

   
     

Useful Life

20

Years

2

Project Cost

       
   

Capital Cost/ MW

Capital Cost

2482.68

Rs lakh

3

Financial Assumptions

       
     

Tariff Period

20

Years

   

Debt: Equity

Debt

70

%

     

Equity

30

%

     

Total Debt Amount

1737.88

Rs lakh

     

Total Equity Amount

744.80

Rs lakh

   

Debt Amount

Loan Amount

1737.88

Rs lakh

     

Moratorium Period

Zero

Years

     

Repayment Period (incl Moratorium Period)

12

Years

     

Interest Rate

12.56

%

   

Equity Amount

Equity Amount

744.80

Rs lakh

     

Return on Equity for first 10 years

20.34

%

     

Return on Equity 11th year onwards

24.47

%

     

Discount Rate

10.55

%

   

Depreciation

Depreciation Rate for first 12 years

5.83

%

     

Depreciation Rate 13th year onwards

2.5

%

   

Other Income

Tipping Fee received from Corporation

308

Rs / Tonne

     

RDF/Compost Sale Price

150

Rs / Tonne

4

Operation and Maintenance

       
     

Normative O&M expense

6.65

% of capital cost

     

O&M Expense (first year)

165.09

Rs lakh

     

Escalation factor for O&M expense

5.72

%

5

Working Capital

       
   

O&M Expense

 

1

Month

   

Maintenance Spare

 

15

% of O&M expenses

   

Receivables

 

2

Months

   

Interest on Working Capital

 

13.06

%

 

Table 3: Determination of Tariff component

Year

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

Net Energy Sold (Lakh kWh)

82.0

100.9

100.9

100.9

100.9

100.9

100.9

100.9

100.9

100.9

100.9

100.9

100.9

100.9

100.9

100.9

100.9

100.9

100.9

100.9

Costs(Rs Lakh)

                                       

O&M

165.09

174.54

184.52

295.08

311.95

329.80

448.66

474.33

501.46

630.14

666.18

704.29

844.58

892.89

943.96

1097.95

1160.76

1227.15

1297.34

1471.55

Depreciation (SLM)

144.74

144.74

144.74

144.74

144.74

144.74

144.74

144.74

144.74

144.74

144.74

144.74

62.19

62.19

62.19

62.19

62.19

62.19

62.19

62.19

Interest on Term Loan

209.18

190.99

172.80

154.61

136.42

118.23

100.04

81.85

63.66

45.47

2.27

0.76

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Interest on Working Capital

16.90

16.27

16.40

21.89

22.39

22.94

28.88

29.85

30.89

37.36

39.01

41.01

46.65

49.23

51.95

60.18

63.53

67.08

70.83

80.13

Return on Equity

151.49

151.49

151.49

151.49

151.49

151.49

151.49

151.49

151.49

151.49

182.24

182.24

182.24

182.24

182.24

182.24

182.24

182.24

182.24

182.24

Total Cost

687.40

678.02

669.95

767.81

767.00

767.20

873.82

882.26

892.24

1009.21

1034.44

1073.03

1135.65

1186.54

1240.34

1402.56

1468.72

1538.66

1612.60

1796.11

Less: Income from tipping fee

131.53

161.88

161.88

161.88

161.88

161.88

161.88

161.88

161.88

161.88

161.88

161.88

161.88

161.88

161.88

161.88

161.88

161.88

161.88

161.88

Less: Additional Income from
sale of by products

10.68

13.14

13.14

13.14

13.14

13.14

13.14

13.14

13.14

13.14

13.14

13.14

13.14

13.14

13.14

13.14

13.14

13.14

13.14

13.14

Net Cost

545.19

503.00

494.92

592.79

591.97

592.17

698.79

707.23

717.22

834.18

859.42

898.01

960.63

1011.52

1065.32

1227.53

1293.69

1363.63

1437.57

1621.08

Gross Tariff (Rs/kWh)

8.38

6.72

6.64

7.61

7.60

7.60

8.66

8.74

8.84

10.00

10.25

10.63

11.25

11.76

12.29

13.90

14.55

15.25

15.98

17.80

Net Tariff (Rs/kWh)

6.65

4.98

4.90

5.87

5.87

5.87

6.92

7.01

7.11

8.27

8.52

8.90

9.52

10.02

10.56

12.16

12.82

13.51

14.25

16.06

Table 4: Levelised Tariff

Levelised Tariff for 20 years (Rs/kWh)

9.18

Net Levelised Tariff for 20 years considering tipping fee and other income (Rs/kWh)

7.44

 

4. Copies of the following documents can be obtained on written request from the office of KGEPL as mentioned below:

a) Executive Summary of the Petition(free of cost, in English or Marathi)

b) Detailed Petition documents along with CD (in English) (on payment of Rs.150/- by Cash/ DD) drawn on “Kolhapur Green Energy Private Limited” payable at Mumbai.

c) Detailed Petition documents (in English) (on payment of Rs. 100/-).

d) CD of detailed Petition document (in English) (on payment of Rs. 50/-).

Office

Address

Telephone/Fax No

Email

Registered Office

MET Educational Complex, 6th floor, “C” wing, A.K.Vaidya Marg, Bandra Reclamation, Bandra (West), Mumbai- 400050

022- 67996000/61872400

anm@sunilhitech.com

5. The Commission has directed KGEPL to invite suggestions/objections from the public on its Petition through this Notice. Suggestions/Objections may be sent in English or in Marathi, in six (1+5) copies, to the Secretary, Maharashtra Electricity Regulatory Commission, 13th Floor, Centre No.1, World Trade Centre, Cuffe Parade, Mumbai-400005; or by Fax or E-mail [Fax: 22163976, E-Mail: mercindia@merc.gov.in] by Monday, 6 June, 2016, along with proof of service on Shri. Ashok N. Mahindrakar, MET Educational Complex, 6th floor, “C” wing, A.K.Vaidya Marg, Bandra Reclamation, Bandra (West), Mumbai- 400050. Tel/Fax: (91 22) 67996000/61872400, Email id: anm@sunilhitech.com, and should carry the full name, postal address and e-mail address, if any, of the sender. It should be indicated whether the suggestion/objection is being filed on behalf of any organization or category of consumers. It should also be mentioned if the sender wants to be heard in person, in which case opportunity would be given by the Commission at the Public Hearing to be held at Office of the Commission, 13th Floor, Centre No. 1, World Trade Centre, Cuffe Parade, Colaba, Mumbai-400005, on Friday, 10 June 2016, at 11: 00 Hours, for which no separate notice will be given.

6. KGEPL shall reply to each of the suggestions/objections received within three days of its receipt, but not later than Thursday, 9 June, 2016 for all the suggestions/objections received till Monday, 6 June, 2016. Rejoinders may be submitted on the replies provided by KGEPL either during the Public Hearing or by Thursday, 16 June, 2016.

7. The detailed Petition document and the Executive Summary are available on KGEPL’s website www.sunilhitech.com and the Executive Summary is also available on the websites of the Commission www.mercindia.org.in / www.merc.gov.in in downloadable format (free of cost).

Place: Mumbai

Date: __May, 2016