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Sukhbir Agro Energy Limited TEV Study for 18 MW Biomass Project

(Rice Straw Based) at Faridkot 1

U.B. CONSULTANTS PRIVATE LIMITED PROJECT & MANAGEMENT CONSULTANTS

1. INTRODUCTION Company 1.1 Sukhbir Agro Energy Limited (SAEL) was incorporated on 21.12.1999 as a

Private Limited Company and reconstituted on 30.06.2006 as a Limited Company. Date of commencement of Business was 21.12.1999. The registered office of the Company is located at Faridkot Road, Guruharsahai, Dist. Firozpur, Punjab, Pincode – 152 022. Corporate Office is located at A-4, 2ndFloor, Green Park Main,New Delhi-110016.

RFP & LOA from PEDA

1.2 Punjab Energy Development Agency (PEDA) is the State Nodal Agency for the

promotion & development of Renewable Energy Projects in Punjab and also the State Designated Agency for the implementation of Energy Conservation Act, 2001. PEDA has prepared a Request for Proposal (RFP) for inviting Biomass Project Developer (BPD) for setting up Rice Straw based Biomass Power generation projects in the state of Punjab on the Build, Own & Operate (BOO) basis.

1.3 Sukhbir Agro Energy Limited (SAEL) an existing Biomass Project Developer

(operating 1 x 15 MW Biomass Power Plant at District – Gazipur, U.P. and 14.5 MW Biomass Power Plant at District Muktsar, Punjab, under the banner of Universal Biomass Energy Pvt Ltd) participated in E-tender Notice No. PEDA/PRJ/BM/2015-16/03 issued by PEDA. In reference to the above E-tender and SAEL’s proposal submitted in response to the tender, PEDA allotted 2 Number of Rice Straw based Bio-mass power Projects of capacity 15 MW each to SAEL for power generation on Build, Own & Operate basis vide Letter of Award No. 6226 dated 19.02.2016 from PEDA.

1.4 It may be noted that as per Implementation Agreement dated 16.12.2016 signed

between SAEL and PEDA & PPA signed between SAEL & PSPCL on 02.01.2018, the Generating Company shall be permitted to increase or decrease project capacity upto 20% of the Project capacity allocated after ascertaining the availability of Bio-mass in the allocated Tehsil. In view of availability of Paddy Straw in sufficient quantity in Faridkot District, SAEL has decided to install a 18 MW Biomass Power Plant based on 100% Paddy Straw at Village – Sadee Singh Wala, Tehsil – Jaitu, District – Faridkot, Punjab.




1.5 In this Report TEV Study for 18 MW Bio-mass Power Plant based on Rice Straw in Tehsil – Jaitu in Faridkot District has been covered.

Promoters’ Background

1.6 The Promoters are Punjab based group having varied and rich experience of more than 30 years in agriculture and agro based industries. The main promoters are Mr. Jasbir Singh, Mr. Sukhbir Singh and Mr. Raminder Singh. The first venture of the group was setting up of a Rice Mill at Guruharsahai, Punjab in 1977. The group undertook Construction of Rural Godowns in the year 1979 for Food Grain Storage for FCI. Subsequently the Group set up a Solvent Extraction Plant at Guruharsahai in 2004. The founder of the group Dr. Harbhajan Singh Awla was Director of CWC for 18 years and was well experience in Rural Godown business.

1.7 The first major expansion and diversification was carried out during 2006 by

setting up an Integrated Food Processing Unit and 15 MW biomass based Power Plant at Fatehullapur, Ghazipur in the state of U.P. The project with Capital outlay of Rs. 125 Crores was set up in record time without any time and cost overrun.

1.8 The group set up a 14.5 MW Biomass based Power Plant at Channu, Muktsar in

Punjab in the year 2009 ( under the banner of Universal Biomass Energy Pvt Ltd) and 1 MW Solar PV Power Project at Sirsa in Haryana in the year 2012 under JNNSM Scheme ( under the banner of Sukhbir Solar Energy Pvt Ltd).

1.9 A 130 TPH Modern Rice Mill ( the capacity of the same subsequently increased to

150 TPH) for Paddy Processing as a green field project was set up by the group in record time of six months involving capital outlay of Rs. 126 Crores. The Rice Mill started commercial Operation w.e.f. 23rd May, 2012 at Village Inayatpur, Powayan, Shahjahanpur.

1.10 Construction of Rural Godowns for Food grain Storage having total Capacity of

13.68 Lacs MT to meet the requirement of FCI at various locations in the state of U.P., Punjab and Haryana under PEG Scheme 2008 with total capital outlay of Rs. 620.00 Crores was undertaken by the Group. Out of the above SAEL has constructed Warehouses to meet the requirement of Food grain Storage for FCI in U.P. of capacity 556000 MT under PEG Scheme at Sitapur, Lakhimpur, Behraich, Maharajganj, Siddharth Nagar, Kushinagar, Mirzapur, Badaun, Pilibhit, Shajahanpur in the state of U.P. Rural Godowns with the capacity of 812025 MT has been installed in the State of Punjab & Haryana. Construction of godowns at all the site were completed in the schedule time & handed over to FCI/SWC and the annual rental from this business segment is Rs. 72.36 Crores (Rent earned by SAEL is Rs. 27.22 Crores).




1.11 A 30 MW Grid connected Solar Power Plant was installed & commissioned in

September, 2016 at District, Mahoba, Bundelkhand, UP which was set up under the banner of Universal Saur Urja Pvt. Ltd.

1.12 Subsequently, SAEL diversified into Grid connected Solar Power Generation 20

MW (AC) in District Mahoba (UP) 20 MW + 10 MW in District Lalitpur (UP), both in Bundelkhand Area of UP. The date of synchronization of the above Solar Power Plants are given below :

Sl. No. Plant Date of Synchronization with Gird 1. Lalitpur – 10 MW 06.02.2017 2. Lalitpur – 20 MW 31.03.2017 3. Mahoba – 20 MW 05.08.2017

1.13 A 20 MW Grid connected Solar Power Plant was installed and commissioned in

December, 2017 at District Sholapur, Maharastra which was set up by SAEL. The project was allotted by Solar Corporation of India (SECI).

1.14 SAEL has built up In-house EPC Team for Design, Engineering, Erection, Quality

Check, Supervision& Commissioning of Solar Power Projects. The Chandigarh Administration presented CREST award to the Company for installation of Solar Roof Top Project.

1.15 Team includes highly experienced persons which implemented large number of

solar power plant throughout the India. The EPC team has successfully implemented various projects. In house EPC team has cumulative experience of executing more than 200MW Solar Project across India. The team has recently commissioned/Under commissioning following projects:

Commsissioned Under Commissioning 50 MW Solar power project in the state of UP of SAEL &20 Mw Solar power in the state of Maharashtra of SAEL

7.5 MW Canal top in the state of Punjab of Canal Solar Energy Pvt. Ltd.

30 MW Solar Power Project in the state of UP of Universal Saur Urja.

7.5 MW Rooftop (SECI) of SAEL

5 MW solar power project in Karnataka of Laxjeet Renewable.

7.5 MW Canal top in the state of Punjab of Punjab Kesari Group.

10 MW Solar power project in the state of Maharashtra& 170 KW at Ludhiana& 406 KW Solar Rooftop at Chandigarh& 200 KW at Jalandhar of Punjab Kesari Group

1 MW Rooftop of Each of Adesh Group &Gurdwara Bangla Sahib




1.16 In view of multi location& multi product, the operation of SAEL has been divided into the following 9 Units :

Unit – I - 5 TPH Rice Mill at Guruharsahai, Punjab Unit – II - 200 TPD Solvent Extraction Plant at Guruharsahai (leased out) Unit – III - 50 TPH Rice Mill, 500 TPD Solvent Extraction Plant & 15 MW Bio-mass based Power Plant at Ghazipur, UP Unit – IV - Storage Ware houses under PEG Unit – V - 150 TPH Rice Mill at Shajahanpur , UP

Unit – VI - Export Division at Delhi Unit – VII - 50 MW Solar Power at Bundelkhand, U.P. Unit – VIII - 20 MW Solar Power Plant at Maharastra. Unit – IX - EPC Division at Delhi 1.17 With the above expansion projects, SAEL with a modest sales turnover of

Rs.265 Crore in 2009-10, has achieved sales turnover of Rs. 2128 Crore during 2016-17. SAEL anticipates to achieve Sales Turnover of Rs. 2985 Crore in 2017-18 ( As per provisional figures, SAEL till 28.02.2018 has achieved Sales Turnover of 2740 Crore). .

Growth in Investment & Sales of SAEL 1.18 As discussed earlier that SAEL had been adding new facilities for capacity

increase, change in product mix & increase operating efficiency. Position in respect of Subscribed& Paid-up Capital, increase in Gross Block & increase in sales during 2009-10 to 2017-18 given below clearly highlights the development path being followed by SAEL.

Rs. In Crore 2009-

10 2010-11

2011-12 2012-13 2013-14

2014-15

2015-16

2016-17

2017-18 (Projected)

1. Subscribed & Paid-up Capital (Growth over previous year)

46.18 55.51 (20%)

101.31 (83%)

168.35 (66%)

194.99 (16%)

200.98 (3%)

203.43 (1%)

208.60 (3%)

210.00 (1%)

2. Gross Block (Growth over previous year)

119 123 (3%)

283 (130%)

476 (68%)

549 (15%)

784 (43%)

815 (4%)

1150 (41%)

1257 (9%)

3. Sales Turnover (Growth over previous year)

265 278 (5%)

304 (9%)

777 (156%)

959 (23%)

1557 (62%)

1723 (11%)

2128 (24%)

2985 (40%)

4. EBITDA 65.59 95.36 172.53 191.53 227.31 312.16 Note: 1. Shahjahanpur Unit ( 130 TPH) Rice mill was commissioned on 23.05.2012 2. Rural Godown Project was commissioned during 2013-14 3. 50 MW Solar Power Plant became operational during FY – 2017-18

4. 20 MW Solar Power Plant become operational during FY – 2017-18




1.19 Key financials of SAEL for FY 2014-15, FY 2015-16 & FY – 2016-17 as computed from Audited Balance Sheets of SAEL & for FY -2017-18 (Projected) are furnished in Annexure – I. From Annexure – I it may be seen that fundamentals of the SAEL is strong.

1.20 Following may be seen from the above :

(i) Subscribed & paid-up Capital increased to Rs. 208.60 Crore in 2016-17 from Rs. 46.18 Crore in 2009-10. (ii) Gross Block increased to Rs. 1150 Crore in 2016-17 from Rs. 119 Crore in 2009-10. (iii) Sales Turn Over increased to Rs. 2128 Crore in 2016-17 Crore from Rs.265 Crore in 2009-10.

Export Segment

1.21 SAEL is exporting Rice to countries like Bangladesh, Mauritius, France, South Africa, Ivory Coast, Gumicia, Senegal, Liberia & Benin. Export achieved from April, 2017 to February, 2018 was Rs. 535.10 Crore. Order in hand is Rs. 328.51 Crore. Export target for FY-2017-18 is Rs. 600 Crore.

Board of Directors 1.22 The Company’s Board is comprised with experienced and professional business

experts having experience in various activities relating to Agro Business, Biomass Power Plant Operation, Administration etc. List of Directors giving short resume of each Director is given below:

Sl. No. Name Designation Short Resume 1 Mr. Jasbir Singh Awla Managing Director Has an extensive experience in the field of agro based industries and

Infrastructure Development 2 Mr. Sukhbir Singh Awla Whole Time Director Monitored the overall implementation of the 15 MW Biomass based power plant

setup at village Fetehullapur, Dist. Ghazipur, U.P. 3 Mr. Ramesh Kumar Dhir Director Having experience of more than 30 years in the business and is taking care of

promotion and marketing sector 4 Mr. Munish Kumar Dhir Director Having experience of more than 30 years in the business and is taking care of

promotion and marketing sector 5 Mr. Randeep Singh Grewal Independent Director He is an agriculturalist and is cultivating his own family farm at village Barewal

Ludhiana and is dealing in Real Estate

6 Mr. Bhagat Singh Independent Director Retired IAS Officer, & held very senior positions in Punjab State Government like Deputy Secretary Home, Director of State Transport, MD of Punjab Tourism Development Corp.

7 Mr.Harbhajan Singh Professional Director Retired IAS Officer,& held very senior positions in both Govt. of India & Govt. of U.P. like Director General National Productivity Council, Joint Secretary in the Ministry of Heavy Industries, Joint Sec & Financial advisor in the ministry of Coal, Mines & Sports. Director-Ministry of Civil Aviation, Principal Sec., Dept. of Medical Education, M.D of UP PCDF, UP Cement Corporation, UP Mineral Development Corporation, Vice Chairman, Lucknow Development Authority, District Magistrate & Collector, Kanpur, Saharanpur and basti among other positions.

8 Dr. Sanjeevan Bajaj Independent Woman Director

CEO – Quality Forum, FICCI has been inducted in the Board of Directors of the Company. She is expert in strategic Planning & Management, Quality Management in Service Industry, Public Service Delivery, Good Governance, Performance Measurement and Analysis, Balanced Scorecard, CXO Dashboard.




Authorised& Paid-up Share Capital of SAEL 1.23 As on 31.03.2017 Authorised Share Capital of Sukhbir agro Energy Ltd is Rs. 210

Crore divided into 21,00,00,000 Equity Share of Rs. 10/- each. Subscribed &Paid up Capital of SAEL as on 31.03.2017 is Rs. 208.60 Crore. As on 28.02.2018 Authorised Share Capital of SAEL increased to Rs. 212.00 Crore& Paid up Capital increased to Rs. 209.93 Crore. The details of share holdersholding more than 5% share each are given below :

As on 28.02.2018 As on 31.03.2017 No. of Shares of Rs. 10 each % of Holding No. of Shares of Rs. 10 each % of Holding Harbhajan Singh - - 19,288,940 9.25 Jasbir Singh 32,855,230 15.65 26,269,623 12.59 Raminder Singh 30,689,499 14.62 23,953,773 11.48 Sukhbir Singh 26,565,002 12.65 19,958,235 9.57 PalkiAwla 16,036,560 7.64 15,962,960 7.65 SeemaAwla 17,671,733 8.42 17,569,533 8.42 NeetuAwla 16,393,332 7.81 16,027,220 7.68 Total 140,211,356 66.79 139,030,284 66.65

Experience in Biomass Power Project 1.24 Key promoters of SAEL i,e. Mr. Jasbir Singh, Mr. Sukhbir Singh & Mr. Raminder

Singh have set up 2 Nos. Biomass Power Project of 15 MW at Gazipur, UP & 14.5 MW at Lambi, near Bhatinda, Punjab ( under the banner of Universal Biomass Energy Pvt Ltd). Both the projects are operational for over 9 years and achieved high capacity utilization levels. As on date both the units i,e. Gazipur Unit in UP &Lambi Unit in Punjab (under the banner of UBEPL) have become debt free.

1.25 FICCI, New Delhi has appreciated the efforts and achievement of the company in

developing Grid Interactive 15 MW Biomass based Power Plant generating electricity by using Rice Husk as fuel which is first of its kind in the state of U.P.

1.26 Eminent jury members have accredited SAEL’s efforts for Promoting Renewal

Source of Energy and Reducing Emission of GHGs by Generating Precious Power in ‘Paddy to Power’ Chain and awarded the FICCI Annual Award 2009-10 for “Innovation & Excellence in Promotion of Renewable Energy”.

Past Performance of Biomass Power Projects 1.27 Past Operating Performance of Bio-mass Power Plants being operated by the

group are furnished below :

Source: SAEL

Power Generation In Lac Kw-Hr PLF Sl. No.

Unit 2015-16 2016-17 2017-18 (Upto Feb, 2018)

2015-16 2016-17 2017-18 (Upto Feb, 2018)

1. Sukhbir Agro Energy Ltd (Gazipur Unit– 15 MW Capacity) 1017.26 1010.24 988.99 77% 77% 75% 2. Universal Bio-mass Energy Pvt Ltd ( 14.5 MW Capacity) 926.31 994.36 1028.51 78% 84% 88%




Key Professionals 1.28 SAEL as a management policy believe in development of a strong team of

Professionals for undertaking efficient & effective management of various units. Keeping the above policy in view SAEL has developed a strong team of qualified & experienced professionals for undertaking proper Technical, Financial & Administrative management of the units set up by SAEL. The list of Professionals deployed by SAEL at various units & Corporate Office is given below:

Sl. No. Name Designation Short Resume

1. Mr. Harsh Awla CFO MBA (Finance) having rich experience in Rice Industry

2. Mr. O.P. Handa CA FCA having more than 15 years of experience in Agro Industry

3. Mr. NirmalDass VP(Banking & Finance) More than 35 yrs experience in Banking Sector

4. Mr Rajeev Harjai (VP, F & A) CA having 17 Years of experience in Accounts & Finance

5. Mr. Pratik Guha EVP Exports More than 20 yrs experience in Rice Industry

6. Mr. Vishal Garg Company Secretary FCS and Law Graduate having more than 13 years of rich experience

7. Mr. Ram Parvesh Company Secretary FCS having more than 13 years of rich experience

8. Mr. Sajjal Singh VP, Finance MBA (Finance) having rich experience in Finance

9. Mr. Desh Deepak Jindal Manager (Accounts) LLB & MBA having more than 5 years of experience

10. Mr. ManavDawar Senior Manager (Exports) MBA having more than 12 years of experience

11. Mr. SiddharthNeogi DGM (F&A) CA Inter ,having Experience of more than 25 years in of Accounts and finance.

12. Mr. HarbansKamboj Manager (F& A) M.A Economics having more than 13 years of experience

13. Mr Sanjay Vashishth (EVP –SBU ) BE (Electrical) and MBA in operational Management having 23 Years of experience

14. Mr. Prasoon Mishra, DGM – Technical B.Tech from IIT Kharagpur having rich in Rice Industry

15. Mr. Prince Ghakkar, DGM MBA, having over 7 years of experience in the field of Solvent Extraction Plant Technical

16. Mr. Vineet Prasad VP Corporate & Business Development

MBA having more than 18 years of experience in Government & Private sector liaisoning

17. Mr.L.DBhardwaj VP (Biomass Power) M.Sc Engineering with more the 45 yrs experience in Biomass Power 18. Mr. Subarta Das EVP (Biomass Power) M.Tech ( Thermal Engineering) with more the 35 yrs experience in Power 19. Mr. SnehashisMaity Project Head B.E (Power Plant) operational Management having 15 Years of experience

20. Mr. Khalid Nadeem EVP Solar Business B. Tech in Electricals having more than 22 years of experience in Government and Private sector in renewal energy sector

21. Mr. SumeetSood DGM Solar EPC Team MBA having more than 18 years of experience in Government and Private sector liaisoning.

22. Mr. Arun Kumar Project Manager B E in Electricals having 10 years of experience

23. Mr. AnkurBhardwaj Manager SCM B. Tech in Electricals having more than 8 years of experience

24. Mr. Vijay Dixit DGM – HR MBA and having more than 18 years of experience




Associate Company Details

1.29 Promoters of SAEL are having interest in no. of other Companies which are listed below. The details in respect of each Companies are furnished in Annexure – II to XI.

Sl. No.

Name Activity Paid Up Share Capital (Rs. in Cr.) as on 31.03.2017

Details Furnished in

1. Universal Biomass Energy Pvt. Ltd.

Running Biomass based Power Plant of 14.5 MW at Lambi, Channu, Dist. Muktsar, in the State of Punjab.

28.14 Annexure – II

2. Sukhbir Solar Energy Pvt. Ltd.

Allotted 1 MW Solar PV Project under Rooftop PV Small Solar Generation Programme of Jawaharlal Nehru National Solar Mission in the State of Haryana. The unit was commissioned and synchronized with the Grid on 15.12.2011 and is getting the Promotional Tariff of Rs. 17.91/unit. The Project is debt free.

7.30 Annexure – III

3. Universal Infra Pvt. Ltd. The company is engaged in Development of Infrastructure Activities and has constructed Rural Godowns of storage capacity of 1.00 lac MT’s of Food Grains for FCI Storage

10.72 Annexure – IV

4. Universal Saur Urja Pvt. Ltd.

USUPL is a subsidiary company of SAEL. USUPL has implemented a 30 MW Solar Power Project at District, Mahoba in U.P.

16.72 Annexure - V

5. Awla Infra The firm is engaged in development of Infrastructure Activities and is carrying out the construction of Rural Godowns for storage capacity of 1.80 lac MT’s of Food Grains for FCI Storage

35.00 Annexure – VI

6 Jatin Agro M/S Jatin Agro came into existence through agreement of co-ownership entered on 20.08.2011 among Smt. SeemaAwla W/O Sh. Sukhbir Singh, Smt. PalkiAwla W/O Sh. Jasbir Singh & Smt. KulwantKaur W/O Sh. Gurpiar Singh The Firm has constructed rural food storage godowns at 4 loctions at capacity of 1.83 Lacs MT in Punjab.

24.45 Annexure – VII

7. Harsh Agro M/S Harsh Agro came into existence through agreement of co-ownership entered on 19.08.2011 between Smt. PalkiAwla& Smt. SeemaAwla. Firm has constructed rural food storage godowns of 116800 MT at 4 locations in Punjab.

11.04 Annexure - VIII

8. Jagat Agro M/S Jagat Agro came into existence through agreement of co-ownership entered on 19.08.2011 among Smt. NeetuAwla W/O Sh. Raminder Singh, DalbirKaur W/O Sh.Sarwan Singh &Raman deep W/O Sh.VikasBasandrai The Firm has constructed rural food storage godowns of 60725 MT at Village Dhand in Punjab.

6.25 Annexure – IX

9. H. S Agro M/S H.S. Agro came into existence through agreement of co-ownership entered on 19.08.2011 between Smt. NeetuAwla W/O Sh. Raminder Singh &MsSakshiAwla D/O Sh.Jasbir Singh. The Firm has constructed rural food storage godowns of 41250 MT at Village Bhangwan in the state of Punjab

4.61 Annexure – X

10. DheerAgriGodowns M/S Dheer Agri. Godowns came into existence through agreement of co-ownership entered on 19.08.2011 between Smt. NeetuAwla, Smt.Minni, Smt.Vani, Smt.Sunita&Ramandeep. The Firm has constructed rural food storage godowns of 110750 MT at 4 locations in Punjab.

11.07 Annexure – XI




Debt Profile of the Group Term Loan 1.30 Unit wise , Lender wise debt profile of the group as on 28.02.2018 is furnished in

Annexure – XII which is summarized below: Rs. in Crore

Sl. No

Unit PNB AB SBI UCO IDBI UBI IIFCL Total

Sanc. O/S Sanc. O/S Sanc. O/S Sanc. O/S Sanc. O/S Sanc. O/S Sanc. O/S Sanc. O/S 1 SAEL

(Total) 402.79 202.72 53.75 19.79 29.51 - - - - - 131.00 124.30 50.00 49.30 667.05 396.11

2 UIPL UP Godown

30.00 14.20 - - - - - - - - - - - - 30.00 14.20

3 Rural Godown (PB)

141.80 37.55 29.20 1.45 - - - - - - - - - - 171.00 39.00

4 Rural Godown (Hariyana)

- - - - - - 54.55 0.12 - - - - - - 54.55 0.12

5 Universal Biomass

53.00 - - - - - - - - - - - - - 53.00 -

6 Universal Saur Urja

60.00 56.95 48.50 46.61 - - - - 48.50 46.44 - - - - 157.00 150.00

7 Grand Total

687.59 311.42 131.45 67.85 29.51 54.55 0.12 48.50 46.44 131.00 124.30 50.00 49.30 1132.60 599.43

Working Capital 1.31 Cash Credit Facility of Rs. 806 Crore is shared as shown below. Rs. in Crore

Bank Existing PC/PCFC/ FOBP / FOBNLC / FOUBNLC Limit Total %age Share

PNB 430 66.00 496.00 61.54% Allahabad Bank 126 56.50 182.50 22.64% State Bank of India 50 21.00 71.00 8.81% Union Bank of India - 56.50 56.50 7.01% Consortium PBF 606 200.00 806.00 100.00%




Surplus Available 1.32 Segment wise details of surplus available after payment of Interest and

Installment is shown in Annexure – XIII which is summarized below : Rs. in Crore

Sl. No.

Segment Annual Revenue

Annual Interest

Annual Installment

Surplus after payment of Interest & Installment

1. Godown Segment 72.40 11.24 22.69 38.42 2. Solar Power 135.15 37.90 35.80 61.45 3. Bio-mass Power 73.00 - - 73.00 4. Total 280.55 49.14 58.49 172.87

Credit Rating 1.33 Current Credit Rating for various group companies are shown below :

SUKHBIR AGRO ENERGY LIMITED CARE: Bank Facilities Rating: CARE A-; Stable/CARE A2 [Single A Minus; Outlook: Stable/ A Two] - This has been upgraded as compared to

previous assessment (Ref. Enclosure – I) CARE: Solar Business Rating: SP 1 B (Highest Performance Capability/ Highest Financial Strength) (Ref Enclosure – II) Universal Biomass Energy Private Limited CARE: Bank Facilities Rating: CARE BBB-/A3 (Ref. Enclosure – III) Universal Infra Private Limited CARE: Bank Facilities Rating: CARE BBB+ (Ref Enclosure – IV) Punjab Rural Godowns CARE: Bank Facilities, Rating :CARE A- (Ref. Enclosure – V) Universal Saur UrjaPvt Ltd CARE: Bank Facilities, Rating :BBB+Stable. This has been upgraded as compared to previous

assessment. (Ref. Enclosure – VI)




Power Generating Data (Solar) 1.34 Power Generating Data ( PLF as per DPR for individual Projects and actual PLF

achieved) for each Solar Plant installed by Sukhbir group is given below:

Particulars Location Capacity (MW) PLF %

(AS per DPR)

Generation %

Universal Saur UrJa Pvt. Ltd

Mohaba, U.P 30 19 21

Sukhbir Agro Energy Ltd

Lalitpur&Mohaba, U.P 50 19 21

Sukhbir Solar Energy Pvt Ltd

Allanabad, Haryana 1 15 16

Sukhbir Agro Energy Ltd

SolapurMaharasthra 20 19.5 21.45

Laxjeet Renewable Energy Pvt. Ltd.

Karnataka 5 21 22

PPA’s for Power Plant 1.35 List of PPA’s signed with various Power Utilities by Power Plants of Sukhbir

Group is furnished in Annexure – XIV. Key Technical Persons 1.36 Resume of Key Technical Persons employed by SAEL for the subject Project i,e.

Mr. SubhamTripathy, Mr. Subrata Das, Mr. L.D. Bhardwaj& Mr. SnehashisMaity are furnished in Enclosure – VII, VIII, IX & X respectively.




Technical Consultant

1.37 SAEL has appointed Desein Private Limited (Desein) as Technical Consultant for

the Project. 1.38 Desein is a Technical Consultant of repute in Power Plant segment and involved

in Design, Engineering, O&M, Environmental Impact Assessment etc. related to Power plants. A copy of Resume of Desein is furnished in Enclosure – X.

TEV Consultant

1.39 SAEL appointed U B Consultants Pvt Ltd (UBC) as Consultant for preparation

of TEV Study Report for the proposed 18 MW Paddy Straw based Biomass Project at District – Ferozepur, Punjab.

1.40 UBC is a Project & Management Consultant. UBC is enlisted in Panel of

Technical Consultants maintained by State Bank of India, Mumbai Local Head Office and Punjab National Bank ( both as TEV Consultant & LIE). UBC has undertaken over 80 TEV assignments & 33 LIE Assignments on behalf of SBI, PNB & Other Banks. UBC also conducted assignments on behalf of by Ministry of New & Renewable Energy, (MNRE), Govt. of India. Resume of UBC is furnished in Enclosure – XI.

1.41 UBC is having considerable experience in Bio-mass Power Plants. A list of

assignments undertaken by UBC/U Bandyopadhyay (Promoter Director & Principal Consultant of UBC) is furnished in Annexure – XV.

1.42 As at the Project Site of SAEL at Village – Sadee Singh Wala, Tehsil – Jaitu,

District - Faridkot only land has been acquired so far (Land registration is under progress) and no other project activities have commenced, Consultant did not undertake site visit. Consultant may undertake site visit when Project work has advanced and various Project activities are under progress.




2 PROJECT COST ESTIMATE & MEANS OF

FINANCE Project

Cost

2.1 Project Cost of 18 MW Biomass Power Plant based on 100% Paddy Straw (including investment in

Biomass Collection Center) works out to Rs 141.22 Crores as shown in Table - 17.1 below :

TABLE - 17.1

Sl.N

o. Item Rs in Crores Reference

A. HARD COST

1 Land & Land Development 9.08

Annexure - F/I

2 Building & Other Civil Cost 16.89

Annexure - F/II

3 Plant & Machinery 92.11

Annexure - F/III

5 Miscellaneous Fixed Assets 5.35

Annexure - F/IV

6 Contingency Provision for Cost Escalation 0.80

Annexure - F/V

7 Sub - total : Hard Cost 124.24

B. SOFT COST

1 Pre-operative Expenses 2.19

Annexure - F/VI

2 Interest During Construction 7.57

Annexure - F/VII

3 Sub - total : Soft Cost 9.76

C. Capital Cost of the Project 134.00

D.

Margin for Bank Guarantee (including Demand Draft) as Security

0.38 Para 16.19 to

16.24

E. Margin for Working Capital 6.84 Para 17.30

F. Total Project Cost 141.22




Note 1: Total Hard Cost and Capex (Hard Cost + Soft Cost) of Power Plant (including investment in

Biomass Collection Center) per MW of total Power Generation Capacity comes to Rs 6.90 Crores&

Rs 7.44 Crores respectively as shown below . Total Soft Cost per MW of Power Generation Capacity

comes to Rs 0.54 Crores (excluding Working Capital Margin and Bank Guarantee Margin) out of which

Interest During Construction Period comes to Rs 0.42 Crores per MW .

Unit Power Plant

(a) Total Power Generation Capacity -

MW 18

(b) Total Hard Cost -

Rs in Crores

124.24

(c ) Total Soft Cost - 9.76

(d) Total Capex - 134.00

(e) Hard Cost / MW - 6.90

(f) Soft Cost / MW - 0.54

(g) Capex / MW - 7.44

Justification for Higher Capital Cost of the Project

2.2

Capital Cost of Project 18 MW Biomass Power Plant feeding 100% Paddy Straw with Water Cooled

Condenser Project to be set up at District Faridkot by SAEL has been estimated at Rs. 134.00 Crore.

However if cost of Land (Rs. 6.80 Cr.) , cost of Biomass Collection Centre (Rs. 2.10 Cr.) Power evacuation

line (Rs. 1.40 Cr.) & Water Pipe Line from canal (Rs. 0.20 Cr.) are excluded from the Capital Cost of the

Project, Core Capital Cost comes to Rs. 123.50 Crore. Considering the Power Plant Capacity at 18 MW,

capital cost per MW comes to Rs. 6.86 Crore. As against this ,as per CERC guideline for Biomass Power

Project (Rice Straw &Julifier (plantation) based Project) with water cooled condenser using Travelling




Grate Boiler has been suggested at Rs. 610.80 Lac say Rs 6.11 Crores .

2.3 Thus in the Capital Cost per MW estimation, Cost estimated for Faridkot Project exceeds the cost per

MW suggested by CERC by Rs. 0.75 Crore.

2.4

The main reason for increase in cost is due to use of Boiler capable of utilizing 100% Paddy Straw as fuel.

The Boiler design is more complex as compared to ordinary Travelling Grate Boiler where varieties of

Biomass can be used, but the Boiler cannot accept only Paddy Straw (100%) as fuel. Combustion process

in Boiler feeding 100% Paddy Straw involves a number of physical/chemical aspects of high complicity.

Some of the areas which are included in the Boiler are more elaborate fuel (paddy straw) handling system,

Slag and Ash system – which consist of Slag Hoppper after grate, submerged slag conveyor, transportation

of slag after submerged conveyor, heating surface cleaning system etc.

2.5

It may be noted that cost of a 80 TPH Ordinary Travelling Grate Boiler is Rs. 15 Crore plus GST (18%)

which comes to Rs. 17.70 Crore say Rs. 18.00 Crore as against cost of 80 TPH Travelling Grate Boiler

capable of firing 100% Paddy Straw from reputed suppliers like DP Clean Tech, BWSC, Shangai comes

betweenRs. 61 to 62 Crore (with GST). This difference in cost of Boiler comes to around Rs., 44 Crore

which is equivalent to Rs. 44 Crore /18 MW = Rs. 2.80 Cr./MW.

2.6

Thus additional Capital Cost/MW with the proposed installation of Travelling Grate Boiler, capable of

firing 100% Paddy Straw at Faridkot district which comes to Rs. 0.75 Crore/MW, is more than offset by




the additional cost which SAEL will be required to incur on installation of Travelling Grate Boiler capable

of firing 100% Paddy Straw.

2.7

Thus Core Capital Cost of Rs. 6.86 Cr./MW estimated in this Report is considered to be justified.

2.8

Further the proposed Boiler will be generating steam at 95Kg/Cm2 pressure and 5400 C temperatures and

consumption of paddy straw has been estimated at 1.2 kg/Kw-Hr as against about 1.4 Kg/Kw-Hr for

Ordinary Travelling Grate Boiler utilizing verities of Biomass as fuel. Thus installation on the proposed

Boiler will result in substantial saving in fuel cost for power generation which justifies the installation of

proposed boiler at higher cost.

Land & Land Development

2.9

SAEL has already acquired 23 Acres of Freehold Land atVillage - Sadee Singh Wala , Tehsil - Jaitu ,

District - Faridkot for setting up the 18 MW Biomass Power Plant . The Cost of Land works out to Rs 6.80

Crores including Land Registration Charges , as detailed in Annexure - F/I .

17.10

Land Development will consist of the following :

(a) Boundary Wall - 4300 Running Feet

(b) Land Levelling& Filling - 3 Ft Filling for 23 Acres Land

17.11

Total Cost of Land Development works out to Rs 2.28 Crores as detailed in Annexure - F/I .

17.12

Thus , total Cost of Land & Land Development works out to Rs 9.08 Crores .




Building & Other Civil Cost

17.13

List of Civil Work along with quanity of RCC , PCC , Brickwork & Structural Steel required for each

work is furnished in Annexure - F/II . For estimation of Cost on this head , avarage rate per CuM for

PCC , RCC & Brickwork has been worked out based on prevailing prices of material near the Project site.

For structural steel , outside the scope of supply of the various vendors , rates include fabrication &

erection charges .

17.14

Building construction and other civil work will be undertaken as detailed below :

Sl.N

o. Item

1 Power House Building

2 T.G. Deck

3 C.W. Pump House and Reservoir

4 Duct Foundation

5 Cable Tranches

6 Boiler

7 Chimney

8 E.S.P.

9 E.S.P. Control Room

10 Duct Support / Fans

11 Pipe Rack

12 Cooling Tower

13 D.M. Plant & Equipment

14 D.M. Plant & Control Room etc

15 Fuel Handling

16 Switchyard

17

Workshop of Electrical & Mechanical including Machine Foundation

18 Water Cooled Condenser

19 Roads & Drains etc




20 Fuel Storage Shed

21 Ash Storage Yard

22 Water Reservoir

23 Housing for Executives

24 Temporary Office , Cement Godown , Dry Material Store

25 Labour Quarters

17.15

Total Cost of Factory Building & Other Civil Work has been estimated at Rs 16.89 Crores as shown

below : (Refer Annexure - F/II for details)

Sl.N

o. Item Unit

Quantity in

Units

Rate / Unit (Rs)

Total Cost (Rs in Lakhs)

1 P.C.C. CuM 1495 5000 74.75

2 R.C.C. 5540 10000 554.00

3 Brickwork CuM 972 5000 48.60

4 Steel Structure MT 700 60000 420.00

5 Sub - total 1097.35

6 Cost of Roads , Drains etc 80.00

7 Fuel Storage Shed 252.00

8 Ash Storage Yard 50.00

9 Water Reservoir 75.00

10

Housing for Executives &Labour Quarters

80.00

11

Temporary Office , Cement Godown , Dry Material Store

30.00

12 Architect's Fees 25.00

13 Total 1689.35

14 Total (Rs in Crores) 16.89

Plant & Machinery




17.16

Major Equipment to be installed at the Power Plant will be as given below :

A. IMPORTED SUPPLIES / DOMESTIC SUPPLIES

(i) 80 TPH Travelling Grate Boiler

(ii) 18 MW Steam Turbine & Generator

B. DOMESTIC SUPPLIES

(i) ESP For 80 TPH Boiler - 4 Fields

(ii) Water Treatment Plant

(iii) Fuel Handling Plant - For 80 TPH Boiler

(iv) Ash Handling Plant

(v) Compressed Air Plant

(vi) Air Reciever Dehumidifier and Pipeline etc

(vii) Air Conditioning Ventilation System , 5.5 TR x 3

(viii) Piping , Ducting , Electricals , Refrigeration etc

(ix) Fire Fighting System




(x) Steam Water Piping including valves , traps , PRDS etc

(xi) 25/5 T Capacity Double Gaddar EOT Crane with DSL Arrangement and rail

(xii) Water Cooled Condenser

(xiii) Electricals at Plant - end

(xiv) Station earthing& lighting protection

(xv) Control System for TG & BOP (DCS)

(xvi) Miscellaneous Accessories - Termination , Glands , Lugs etc

(xvii) Local Instruments

(xviii)

Cooling Tower 250 Cubic Meter per Hr

(xix) CW & ACW Pumps

(xx) Steam & Water Analysis System

17.17

Following other costs have been included under Cost of Plant & Machinery :

(a) Erection , Commissioning -

7% on Total Cost of Domestic Plant & Machinery

& Engineering Charges

(including Crane Hire Charges)




(b) Transportation & Handling -

Included in Cost of Imported Supplies and @ 2% On Cost of

Charge

Domestic Equipment .

(c) Technical Consultancy -

Rs 75.00 Lakhs (Plus GST @ 18%) .

Charges

(d) Packing &Fowarding - Included Within Supply Price of Respective Equipments .

Charges

17.18

Total Cost of Plant & Machinery has been estimated at Rs 92.11 Crores as per break-up given below :

Sl.N

o. Item Rs in Lakhs

1

Total Cost of Plant & Machinery at Site (including Duties , Taxes & Packing & Forwarding)

1.1

Imported Supplies (Cost Estimates furnished in Annexure - F/IIIA)

7670.00

1.2 Domestic Supplies 1333.01

1.3 Sub - total 9003.01

2

Add : Erection & Commissioning Charges (including Crane Hire Charges) & Engineering Charges

93.31

3 Transportation & Handling Charges 26.66

4 Sub - total 9122.98

5 Consultancy Charges 88.50

6 Total Cost of Plant &Mahinery 9211.48

7 Total Cost of Plant &Mahinery (Rs in Crores) 92.11

17.19

Costs Estimatesfor Plant & Machinery have been based on the following :




Boiler

17.20

SAEL has obtained quotations from the following 3 reputed suppliers of Boiler having experience in

designing and installing Boiler which can accept 100% Paddy Straw as fuel :

(a) DP Clean Tech

(b) BSWC , China

(c) Shangai Power Equipment Research Institute Co Ltd , China

17.21

In the TEV Report , Offer from DP Clean Tech has been taken into consideration , with basic Cost of Boiler

beingRs 51.50 Crores + applicable GST . Cost of Boiler of the other two vendors (shown above) are close

to cost quoted in offer given by DP Clean Tech . Thus , SAEL may decide on procuring Boiler from any

of the above 3 vendors .

Turbine

17.22

SAEL has likewise obtained quotations from the following reputed suppliers of Turbine for its 18 MW TG

Set :

(a) BHEL

(b) Siemens

(c) QINGDAO JIENENG , China

17.23

In the TEV Report , offer from BHEL has been considered at Rs 13.50 Crores + applicable GST . Cost of

Turbine of the other two vendors (shown above) are close to cost quoted in offer given by BHEL . Thus ,

SAEL may decide on procuring Turbine from any of te above three vendors .




17.24

As regards other items of Plant & Machinery , the cost have been based on estimates (except for Cooling

Tower , for which Quotation has been obtained) made by the consultants based on their experience in

similar projects in consultation with the promoters' of the SAEL .

Miscellaneous Fixed Assets

17.25

Cost on this head would include the following :

(a) Weigh Bridge 50 T (at Plant Site)

(b) Investment in Biomass Collection Centers - 10 Nos (the details of Cost estimates for Biomass

Collection Center , 10 Nos are furnished in Para 14.14 & 14.15 of the Report)

(c) Loader

(d) Tipper (2 Nos)

(e) Tractor & Trailer (2 Nos)

(f) Power Evacuation Line (66 KV) , 3.5 KM @ Rs 40 Lakh / Km

(g) JCB

(h) Water Pipeline from Raunta (Jaitu) RajwahaCnal (2,5 Km Long)

(i) DG Set - 300 KVA

(j) Capacitor Bank

(k) Furniture & Fixture & Other Office Equipment like Computers , AC etc

17.26

Total Cost of Miscellaneous Fixed Assets works out to Rs 5.35 Crores as detailed in Annexure - F/IV .




Contingency Provision for Cost Escalation

17.27

Provision for Contingency for Cost Escalation &Unforeseens has been provided on all non - firm costs .

It maybe noted that the company has made agreement for purchase of 23 acres of land for the project .

Thus , the cost of Land has been considered as Firm Cost . Also negotiations are in advanced stage for

Boiler & Turbine and cost of these 2 items estimated at Rs 76.70 Crores has been considered as Firm Cost .

17.28

Non - firm cost thus consists of Land Development , Building and Civil Work , Plant & Machinery

(excluding Boiler & Turbine) & Miscellaneous Fixed Assets . Considering Project Implementation Period

of 18 months from the date of Financial Closure (June ' 2018) , Contingency Provision for Cost Escalation

has been estimated @ 2% on Non-Firm Cost & works out to Rs 0.80 Crores as detailed in Annexure - F/V .

Pre-operative Expenses

17.29

Pre-operative Expenses excluding Interest during Construction has been estimated at Rs 2.19 Crores

as shown below : (please refer to Annexure - F/VI for details)

Sl.N

o. Item Rs in Lakhs

1 Loan Processing Charge & Legal Expenses 50.00

2

Establishment Expenses @ Rs 2.50 Lakhs per month for 18 months*

45.00

3 Facilitation Service Charge payable to PEDA 50.00

4 Insurance during Construction Period 9.00

5 Travelling Expenses (including Foreign Travel) 20.00

6 Miscellaneous Expenses 20.00

7 Trial Run Expenses 25.00

8 Total 219.00

* Considered from date of Financial Closure in June ' 2018 & Project completion




anticipated by December '

2019 (Commencement of Commercial Operation is anticipated by January ' 2020) , total time period is 18

months .

Interest During Construction

17.30

The details of cash flow during construction period and calculations of interest during construction

including interest on IDC is furnished in Annexure - F/VII . Total Interest During Construction works

out to Rs 7.57 Crores . The Term Loan Drawdown Schedule is furnished in Annexure - F/VII & is

summarised below :

Rs in Crores

Sl.N

o. Item

Term Loan Drawdown Schedule

Interest During Construction Period

1 Upto June ' 2018 0.00 0.00

2

July ' 2018 to September ' 2018

13.51 0.17

3

October ' 2018 to December ' 2018

13.77 0.51

4 January ' 2019 - March ' 2019 23.03 0.97

5 April ' 2019 to June ' 2019 23.47 1.55

6

July ' 2019 to September ' 2019

14.90 2.03

7

October ' 2019 to December ' 2019

10.07 2.34

5 Total 98.75 7.57

Note :

(a) For Phasing of Expenditure please refer to Annexure - F/VII .

(b) Rate of Interest has been assumed at 10.00% per annum .

(c) Upto June ' 2018 total expenditure shown in IDC Calculation Schedule




represent the fund

utilised for procurement of 23 Acre Land Rs 6.80 Crores for the Project , Facilitation Service

Charge payable to PEDA of Rs 50 Lakhs (included under Pre-operative Expenses) and 100%

Margin on Performance BG of Rs 1.50Crores obtained from PNB .

MARGIN FOR BANK GUARANTEE (BG)

17.31

As per terms of Implementation Agreement which SAEL signed with PEDA , 2 Nos Bank Guarantees

in the ratio of 30% and 70% of Rs 150 Lakhs in favour of PEDA are required to be opened .

17.32

PNB , Guru HarSahai Branch , has already opened 2 Nos BGs as shown below :

(a) BG No 2361ILG007316 dated 16.12.2016 for Rs 45 Lakhs

(b) BG No 236I1LG007116 dated 16.12.2016 for Rs 105 Lakhs

17.33

These 2 BGs were opened with 100% margin . However , the margin for both these BGs maybe reduced to

25% and accordingly Rs 0.11 Crores&Rs 0.26 Crores has been included in the Project Cost . Both these

BGs will be valid upto 15.06.2019 (Date of Expiry) .

MARGIN FOR WORKING CAPITAL

17.34

Margin for Working Capital during 2019-20 (3 Mths) ie first operating year works out to Rs 6.84 Crores

on Projected Balance Sheet Method (Refer to Annexure - F/XIX for details) . Margin for Working Capital

would be met through Long Term Sources and have been included under Project Cost .




MEANS OF FINANCE

17.35

The proposed Means of Finance for the Project is given below :

Rs in Crores Rs in Crores

Term Loan 98.75

Promoter's Contribution:

Share Capital / Securities Premium 32.47

Internal Cash Generations 10.00 42.47

Total

141.22

Debt Equity Ratio 2.33

Promoter's Contribution to Project Cost

30.07%

Fixed Assets Coverage Ratio

125.81%

Fixed Assets Coverage Ratio with Capitalisation of

135.70%

Pre-operative Expenses

Note :

Debt Equity Ratio has been considered at 2.33 (70% Debt & 30% Equity) as per CERC guideline

for Biomass Power Plant with Paddy Straw & Travelling Grate Boiler .

Term Loan

17. Bank(s) may sanction a Term Loan of Rs 98.75 Crores to SAEL for the proposed 18




36 MW Biomass Power

Plant Project with 100% Paddy Straw . The Term Loan will be repaid in 12 Years & 6 Months from the

date of first disbursement of the Term including initial moratorium of 30 months (12 months after COD)

in 40 quarterly instalments . With Financial Closure assumed in June ' 2018 , first disbursement of Term

Loan in July ' 2018 & Project Implementation Period of 18 Months (after Financial Closure) , Commercial

Operation Date (SCOD) would be January ' 2020 , the first quarterly Instalment will fall due on Quarter

ending March ' 2021 & the last quarterly Instalment will fall due on Quarter ending December ' 2030 .

Term Loan Repayment Schedule is furnished in Annexure - F/XII , which is summarised below :

a. Financial Closure - June ' 2018

b. Project Implementation Period after 1stDisbursement - 18 Months

of Term Loan

c. First Disbursement of Term Loan -

July ' 2018

d. Commencement of Commercial Operation (SCOD) - January ' 2020

e. Term Loan Amount - Rs 98.75 Crores

f. Moratorium on Repayment of Term Loan afetr SCOD - 1 Year

f. Door to Door Tenure of Term Loan -

12 Years & 6 Months

(Note below)

g. First Quarterly Instalment Falling Due on -

Quarter ending March '2021

h. Last Quarterly Instalment Falling Due on -

Quarter ending December'2030

Note :

Project Implementation Period after first disbursement of Term Loan is 18 months plus

Moratorium on Repayment of Term Loan after SCOD of 12 months and repayment of Term

Loan in 10 years in 40 quarterly instalments = 18 months + 12 months + 10




years = 12 years

& 6 Months .

17.37

Term Loan Repayment Schedule is given below :

Year

No of Quarterly Instalments

Quarterly Instalment Amount

(Rs in Crores)

Total Repayment

(Rs in Crores)

2019-20

(Oct - Mar) Moratorium Nil Nil

2020 - 21

(Apr - Dec) Moratorium Nil Nil

2020 - 21

(Jan - Mar) 1 1.00 1.00

2021 - 22 4 1.25 5.00

2022 - 23 4 1.75 7.00

2023 - 24 4 2.00 8.00

2024 - 25 4 2.25 9.00

2025 - 26 4 2.50 10.00

2026 - 27 4 2.75 11.00

2027 - 28 4 3.00 12.00

2028 - 29 4 3.25 13.00

2029 - 30 4 3.25 13.00

2030 - 31

(Apr - Dec) 3 3.25 9.75

Total 40 98.75

17.38

Term Loan Interest & Repayment Schedule is furnished in Annexure - F/XII .

17.39

For purpose of DPR , Term Loan Interest has been computed @ 10.00% p.a. on reducing balance of Term




Loan .

17.40

Total Door to Door Tenure of Term Loan from the date of first disbursement of Term Loan (July ' 2018) to

payment of last Instalment (December ' 2030) will be 12 years & 6 Months .

Note : There will not be any moratorium on Interest payment . Interest accrued and falling due till

December ' 2019 will be paid and charged to Project Capital Account and from January ' 2020 (after

Commencement of Commercial Operation) will be charged and paid through Revenue Account .

Promoters' Contibution

17.41

Promoter's Contribution works out to Rs 42.47 Crores , out of which Rs 10.00 Crores will be met through

Internal Cash Generation from existing operations of SAEL & balance Rs 32.47 Crores would be infused

in the form of Equity (Equity Share Capital + Securities Premium) .

LETTER OF CREDIT (LC)

17.42

As per payment terms for supply of Boiler & Turbine , 10% advance is required to be paid through TT

and Letter fo Credit for balance 90% has to be opened . The total Basic Price for Boiler & Turbine being

Rs 65 Crores , LC requirement comes to Rs 58.5 Crores . Thus , it is suggested that the Lenders sanction

a LC Limit of Rs 58.5 Crores , say Rs 60 Crores as a sub-limit to Term Loan of Rs 98.75 Crores . Margin

for LC maybe considered at 25% and LC will be paid through debit of Term Loan Account .




POWER GENERATION COST

17.43

Power Generatiuon Cost as per CERC Guideline for the year 2021-22 when peak PLF of 75%will be

achieved has been furnished below :

Sl.N

o. Item Unit

2021-22

A. Units Generation

1 Installed Capacity

Lakh -kw-hr

1576.80

2 Gross Generation at 75% PLF

1182.60

3 Auxiliary Consumption 118.26

4 Net Generation

1064.34

B. Varaible Cost

1 Biomass Cost Rs in Crores 46.94

C. Fixed Costs

1 O&M Expenses

Rs in Crores

8.99

2 Cost of Water 0.28

3 Depreciation 6.67

4 Interest on Term Loan 9.59

5 Interest on Working Capital 2.31

6 Total Fixed Cost 27.84

D.

Levellised Tariff Corresponding to Uselife

Per Unit Cost of Generation

Rs / Kw-hr

1 Varaible Cost of Generation (COG) 3.97

2 O&M Expenses 0.76

3 Cost of Water 0.02

4 Depreciation 0.56

5 Interest on Term Loan 0.81

6 Interest on Working Capital 0.20




7 Sub - total : Cost of Generation 6.32

8

Balance Tariff to be Utilised for meeting repayment of Long Term Liabilities , Future Capital Investment etc

2.34

9 Total Cost of Generation 8.66

* Total Tariff assumed for the year 2021-22 at 75% PLF of Power Plant as per PSERC Order dated

06.12.2016 in the matter of petition No 53 OF 2016 is Rs 8.66 per Kw-hr (please refer to Annexure - F/XI) .

18 FINANCIAL PROJECTIONS

POWER GENERATION TARGETS

18.1

Estimation of annual total exportable power generation on the basis of 365 days operation of Power

Plant per annum (as per CERC Guideline) will be as given below : (Please refer Annexure - F/VIII for

details)

Sl.N

o. Item Unit

2019 - 20 (3

Mths)

2020-21

2021-22

2022-23

2023-24

2024-25

1 Installed Capacity

Lakh -kw-

hr

394.20

1576.80

1576.80

1576.80

1576.80

1576.80

2 Gross Generation

236.52

1084.05

1182.60

1182.60

1182.60

1182.60

3

Auxiliary Consumption

26.02 110.7

7 118.2

6 118.26

118.26

118.26

4 Net Generation

210.50

973.28

1064.34

1064.34

1064.34

1064.34




Note : For 2019-20 , Installed Capacity has been prorated for 3 months .

18.2

It maybe noted that for the purpose of estimation of annual power generation , the following assumptions

as per CERC Guidelines have been made (Please refer to Annexure - F/VIII for details)

Sl.N

o. Item Unit

2019 - 20 (3

Mths)

2020-21

2021-22

1 Rating of TG MW 18 18 18

2 No of Hours Operation per Day

Hours

24 24 24

3 No of Days Operation per annum * Days 365 365 365

4 No of Months Operation per Annum 3 12 12

5 Plant Load Factor (PLF)

5.1 April - June - 60%

5.2 July - December - 70%

5.3 January - March 60% 75%

5.4 Full Year 75%

6 Auxiliary Consumption

6.1 April - June -

11.00%

6.2 July - December

10.00%

6.3 January - March

11.00%

10.00%

6.4 Full Year

10.00%

* It has been assumed that Project Implementation will be completed by December ' 2019 and Commercial

Operation from the Plant will commence from January ' 2020 onwards . Thus , in the year 2019-20 (1st

operating year) , the plant will operate for 3 months . From 2020-21 onwards , the Plant will operate for

full year .

18. It maybe noted that the Company envisages 365 days operation per annum of the




3 power plant as per

CERC Guidelines (keeping the above yearly PLFs in view) . Yearly PLFs assumed are as per CERC

guidelines except that from 2nd year onwards peak PLF has been conservatively assumed at 75% as

against 80% suggested by CERC . Thus , maximum PLF of 75% has been considered from January ' 2021

onwards . Power Plants typically operate at high PLFs (above 90%) . If 330 days operation is considered

instead of 365 days , then the peak PLF works out to 82.95% , which is well below 90%PLF regularly

achieved by Power Plants . Thus , assumption of 365 days operation of Power Plant in conjunction

with yearly PLFs suggested by CERC for estimation of financial projections is considered achievable .

ANNUAL FUEL CONSUMPTION & COST

18.4

The Company proposes to utilise 100% Paddy Straw as fuel for the Travelling Grate Boiler for generating

power . Considering GCV of Paddy Straw at 2800 Kcal / Kg and 75% Boiler Efficiency , Consumption of

Fuel (Paddy Straw) per Kw-hr works out to 1.20 Kg / Kw-hr . For estimation of Fuel Consumption per

Kw-hr , Please refer to Annexure - XVII .

18.5

Landed Cost of Paddy Straw at Plant Site has been estimated at Rs 3000 / MT as per current market

trend in price of Paddy Straw . (Please refer to Para - 14.16 for estimation of Cost of Dry Paddy Straw with

20% moisture) . Cost on this head has been increased @ 5% anually as per CERC / PSERC Guideline .

Power Tariff has also been increased @ 5% anually as per CERC RE Tariff Order 2017-18 . Please refer

to Para - 18.13 for details .




18.6

Total Biomass consumption per annum for meeting steam requirement for Power Generation at target

PLF of Power Plant has been detailed in Annexure - F/IX .

Annual Fuel Cost

18.7

Annual Fuel Cost in Power Plant at each operating level is furnished below : (Refer Annexure - F/IX for

details)

Sl.N

o. Item

2019 - 20 (3

Mths)

2020-21

2021-22

2022-23

2023-24

2024-25

1

Annual Consumption of Fuel (Paddy Straw) at each operating level (in MT)

28382

130086

141912

141912

141912

141912

2 Cost of Fuel / MT (Rs / MT) 3000 3150

3307.5

3472.875

3646.5188

3828.8447

3

Annual Cost of Fuel (Rs in Crores)

8.51 40.98 46.94 49.28 51.75 54.34

4

Avarage Cost of Fuel / Kw - hr (Rs / Kw-hr)

3.60 3.78 3.97 4.17 4.38 4.59

18.8

For details of availibility of Fuel & Fuel Linkage please refer to Part 13 & 14 of the Report .

OTHER COSTS

18.9

Other Cost would consist of O&M Expenses , which as per CERC Guideline would be Rs 40.00 Lakhs per

MW . As per CERC Guideline , Cost on this head would increase @ 5.72%per annum . With O&M

Expenses of Rs 0.40 Lakhs per MW / Annum in 2017-18 , Annual O&M Expenses works out to Rs 0.45

Crores/ MW in 2019-20 (3 Month) based on CERC Guideline . Thereafter , Cost on this head has been




increased @ 5.72% anually (as per CERC Guideline) . Estimation of Annual O&M Expenses have been

furnished in Annexure - F/X , which has been summarised below :

Sl.N

o. Item

2019 - 20 (3

Mth)*

2020-21

2021-22

2022-23

2023-24

2024-25

1

Annual O&M Expenses / MW of Previous Year (Rs in Crores)

0.423 0.45 0.47 0.50 0.53 0.56

2

Add : 5.72% Annual Increment over previous year as per CERC Guideline

0.024 0.026 0.027 0.029 0.030 0.032

3

Toral Annual O&M Expenses / MW for Current Year (Rs in Crores)

0.45 0.47 0.50 0.53 0.56 0.59

4 Rating of Turbine (in MW) 18 18 18 18 18 18

5

Annual O&M Expenses for 15 MW Turbine (Rs in Crores)

2.01 8.51 8.99 9.51 10.05 10.63

* Pro-rated for 3 months .

18.10

O&M Exepnses will cover Labour Cost , Consumables , Miscellaneous Manufaturing& Administration

Expenses .Thus , Cost on these individual heads of Exepenses have not been considered .

COST OF WATER

18.11

As discussed earlier , Water will be obtained from Raunta (Jaitu)Rahwaha Canal through a Pipeline (2.5

Km Long) . Annual Cost of Water has been estimated at Rs 25 Lakhs with 5% annual increment .




SELLING EXPENSES

18.12

Cost on this head would consist of 2% discount to be allowed on Sale Bills raised by SAEL on PSCPL .

Discount would be allowed for payment of Bills raised by SAEL within 7 days of presentation as per PPA.

REVENUE FROM SALE OF POWER

18.13

Power generated in the 18 MW Biomass Based Power Plant will be sold to Grid of PSCPL (Bajakana

Sub-station in Faridkot District) . Annual revenue from sale of power after providing for 11% (1st 6

Months ie from January '2020 to June ' 2020 (stabilisation phase) and 10% from July ' 2021 onwards

(post-stabilisation period) towards Consumption in Auxiliary Equipments will be as detailed below :

(Please refer to Annexure - F/VIII for details)

Sl.N

o. Item

2019-20 (3

Mths)

2020-21

2021-22

2022-23

2023-24

1

Net Total Exportable Power Generation (in Lakh Kw - hr)

210.50

973.28

1064.34

1064.34

1064.34

2 Power Tariff (Rs / Kw-hr) 8.16 8.40 8.66 8.93 9.21

2.1 Annual Sale of Power (Rs in Crores) 17.18 81.79 92.17 95.04 98.04

Note :

Power Tariff of Rs 8.16 / Kw-hr as per PSERC Order dated 06.12.2016 in the matter of petition

No 53 of 2016 will consist of 2 portions , viz Fixed Tariff (Rs 3.28 / Kw-hr) and Variable Tariff

(Rs 4.88 / Kw-hr). While Fixed portion of Power Tariff will remain unchanged during the project

life , the Variable portion will increase @ 5% anually (as per PSERC Order) . Estimation of Fixed

and Variable Power Tariff have been furnished in Annexure - F/XI . It




maybe noted that cost of

Fuel has also been increased @ 5%anually as per PSERC Order . Please refer to Annexure - F/IX

for annual Fuel Cost .

Interest on Term Loan & Working Capital

18.14

Interest on Term Loan has been provided @ 10.00% per annum on reducing balance (please refer to

Annexure- F/XII for details) . Interest on Working Capital has been provided @ 10.50% per annum .

Depreciation as per Companies Act

18.15

Depreciation Schedule under Companies Act is furnished in Annexure - F/XIII .

Depreciation as per Income Tax Act

18.16

The various items of Civil Cost and Plant & Machinery qualify for different rates of depreciation & have

accordingly been classified under different blocks . The rates of depreciation under Income Tax Act

applicable to each block is summarised below : (Please Refer Annexure - F/XIV for details). For IT

Depreciation calculation , Accelerated Depreciation on Plant & Machinery has not been considered .

18.17

The Blocks Under Civil Work Include the following :

Block

Rate of Depreciation

Description of Assets




Block A : 10% RCC , PCC , Brickwork & Steel Structures for various Civil Work ,

Roads & Drains etc

Block B : 5% Non Factory Building

18.18

The Blocks Under Plant & Machinery Include the following :

Block

Rate of Depreciation

Description of Assets

Block A :

20% (Initial Year) & 15% Subsequent Years Travelling Grate Boiler & Control System for TG &

BOP (DCS)

Block B : 100

% Ash Handling System

Block C :

20% (Initial Year) & 15% Subsequent Years

Rest of Plant &Machinery .

Income Tax

18.19

Income Tax Schedule is furnished in Annexure - F/XV . It maybe noted that for the purpose of Financial

Projections Deferred Tax has been considered . It maybe noted that since Deferred Tax is a provision and

not a Cash Expenses , it does not affect Cash Flow or DSCR . Financial Projections without considering

Deferred Tax has been provided in Annexure - F/XXXI & F/XXXII .




FINANCIAL PROJECTIONS

18.20

Assumptions made for profitability projections are given in Table below :

Sl.N

o. Item

Value Reference

1 Commercial Operation Date January ' 2020 Para - 12.14

2

Plant Capacity (Gross Generation)

1576.80 Lakh Kw-Hr per Annum

Annexure - F/VIII

3 Plant Load Factor (PLF)

2019-20 (Jan-Mar) - 60% 2020-21 (Apr-Jun) - 60% 2020-21 (July-Dec) - 70%

2020-21(Jan-Mar) Onwards - 75%

Para - 18.2

4

Power Consumption in Auxiliaries

2019-20 (Jan-Mar) - 11% 2020-21 (Apr-Jun) - 11% 2020-21 (Jul) - Onwards -

10%

Para - 18.2

5 Power Tariff rate per unit

5.1 Fixed Rate Rs 3.28 / Kw-hr

Para - 18.13

5.2 Flexible Rate Rs 4.88 / Kw-hr with 5%

annual increment

6

Discount for receiving paymnet of Monthly Bills raised on PSCPL within 7 days

2% Para - 18.12

7

Fuel (Paddy Straw) Consumption per Kw-Hr

1.20 MT / Kw - Hr Para - 18.4

8

Fuel (Paddy Straw) cost per MT

Rs 3000 / MT (With 5% annual increment)

Para - 18.5

9 O&M Expenses

Rs 0.45 Crore / MW as on 2019-20 with 5.72% Annual

Increment as per CERC Guideline

Para - 18.9

10 Cost of Water

Rs 0.25 Crores per annum with 5% Annual Increment

Para - 18.11

11 Interest Rate Annexure -




11.1 Term Loan 10.00% per annum F/XII

11.2 Working Capital 10.50% per annum

12 Depreciation

12.1 As per Companies Act

Annexure -

F/XIII

12.2 As per I.T. Act

Annexure -

F/XIV

13 Income Tax

Annexure -

F/XV

Financial Projections

18.21

The following Financial Projections are enclosed :

Operating Statement (CASFORM II) -

Annexure - F/XVI

Analysis Of Balance Sheet (CASFORM III) -

Annexure - F/XVII

Comparative Statement Of Current Assets &

Current Liabilities (CASFORM IV) - Annexure - F/XVIII

Computation Of Maximum Permissible Bank

Finance For Working Capital (CASFORM V) -

Annexure - F/XIX

Funds Flow Statement (CASFORM VI) -

Annexure - F/XX

Cash Flow Statement -

Annexure - F/XXII

Profitability Projections

18.22

Profitability Projections of the Company during from 2019-20 (3 Mth) to 2030-31 are furnished in Table




below :

Rs in Crores

Sl.N

o. Item

2019-20 (3

Mth)

2020-21

2021-22

2022-23

2023-24

2024-25

1

Net Sales 17.18 81.79 92.17 95.04 98.04 101.2

0

2 Fuel (Paddy Straw)

Consumption 8.51 40.98 46.94 49.28 51.75 54.34

3

Gross Operational Profit before Interest & Depreciation

6.24 30.41 34.12 34.05 33.98 33.89

4 Interest 2.98 12.03 11.90 11.32 10.59 9.75

5 Depreciation (SLM) 1.67 6.67 6.67 6.67 6.67 6.63

6 Operating Profit before Tax 1.59 11.71 15.55 16.06 16.72 17.51

7 Profit before Tax 1.59 11.71 15.55 16.06 16.72 17.51

8

Net Profit Before Considering Deferred Tax

1.27 9.33 12.39 12.79 13.32 13.95

9 Deferred Tax Provision 2.73 2.59 1.95 1.40 0.93 0.54

10 Net Profit after Deferred Tax -1.46 6.74 10.44 11.39 12.39 13.41

11 Retained Profit -1.46 6.74 10.44 11.39 12.39 13.41

12 Net Cash Accrual * 2.94 16.00 19.06 19.46 19.99 20.58

13 Gross DSCR - (Overall -

1.78) 2.19 2.38 1.96 1.78 1.74 1.70

14 Net DSCR - (Overall - 2.31) 0.00 16.00 3.81 2.78 2.50 2.29

15

Net Profit (Before Deferred Tax) / Net Sales (%)

7.39%

11.40%

13.44%

13.46%

13.58%

13.78%

16

Net Profit (Before Deferred Tax) / TNW (%)

3.10%

19.53%

21.29%

18.38%

16.25%

14.62%

Sl.N

o. Item

2025-26

2026-27

2027-28

2028-29

2029-30

2030-31

1

Net Sales 104.5

1 107.9

9 111.6

5 115.49

119.51

123.75

2 Fuel (Paddy Straw) 57.05 59.91 62.90 66.05 69.35 72.82




Consumption

3


33.80 33.70 33.59 33.47 33.33 33.19

4 Interest 8.81 7.77 6.63 5.40 4.10 2.80




8 Net Profit Before

Considering Deferred Tax 14.72 15.47 16.42 17.72 18.00 17.07

9 Deferred Tax Provision 0.23 -0.06 -0.26 -0.33 -0.51 -0.67

10 Net Profit after Deferred Tax 14.49 15.52 16.68 18.05 18.51 17.74

11 Retained Profit 14.49 15.52 16.68 18.05 18.51 17.74

12 Net Cash Accrual* 21.23 21.97 22.76 23.54 23.82 22.89

13 Gross DSCR - (Overall -

1.78) 1.68 1.67 1.66 1.66 1.73 1.72

14 Net DSCR - (Overall - 2.31) 2.12 2.00 1.90 1.81 1.83 1.76

15 Net Profit (Before Deferred

Tax) / Net Sales (%) 14.08

% 14.32

% 14.71

% 15.35

% 15.06

% 13.79

%

16 Net Profit (Before Deferred Tax) / TNW (%)

13.40%

12.33%

11.56%

11.07%

10.08%

8.69%

* Net Cash Accrual has been estimated after adding back Depreciation and Deferred Tax Provision , both

being non - cash items .

Note :

Profitability Projections without provision of Deferred Tax is given below :

Rs in Crores

Sl.N

o. Item

2019-20 (3

Mth)

2020-21

2021-22

2022-23

2023-24

2024-25

1

Net Sales 17.18 81.79 92.17 95.04 98.04 101.2

0

2 Fuel (Paddy Straw) 8.51 40.98 46.94 49.28 51.75 54.34




Consumption

3


6.24 30.41 34.12 34.05 33.98 33.89

4 Interest 2.98 12.03 11.90 11.32 10.59 9.75




8

Net Profit Before Considering Deferred Tax

1.27 9.33 12.39 12.79 13.32 13.95



11 Retained Profit 1.27 9.33 12.39 12.79 13.32 13.95

12 Net Cash Accrual * 2.94 16.00 19.06 19.46 19.99 20.58

15 Net Profit / Net Sales (%)

7.39%

11.40%

13.44%

13.46%

13.58%

13.78%

16 Net Profit / TNW (%)

2.90%

17.58%

18.92%

16.35%

14.54%

13.22%

Sl.N

o. Item

2025-26

2026-27

2027-28

2028-29

2029-30

2030-31

1

Net Sales 104.5

1 107.9

9 111.6

5 115.49

119.51

123.75

2 Fuel (Paddy Straw)

Consumption 57.05 59.91 62.90 66.05 69.35 72.82

3


33.80 33.70 33.59 33.47 33.33 33.19

4 Interest 8.81 7.77 6.63 5.40 4.10 2.80




8 Net Profit Before

Considering Deferred Tax 14.72 15.47 16.42 17.72 18.00 17.07



11 Retained Profit 14.72 15.47 16.42 17.72 18.00 17.07




12 Net Cash Accrual* 21.23 21.97 22.76 23.54 23.82 22.89

15

Net Profit / Net Sales (%) 14.08

% 14.32

% 14.71

% 15.35

% 15.06

% 13.79

%

16

Net Profit / TNW (%) 12.24

% 11.40

% 10.80

% 10.43

% 9.58% 8.33%

* It maybe seen from the above that Net Cash Accrual remains same with as well as without Deferred Tax

provision .

Working Capital

18.23

The computation of requirement of Working Capital has been based on Projected Balance Sheet Method .

Inventory , Debtor & Creditor Holdings will be as given below :

Sl.No. Item

Basis Suggested Holdings

1 Fuel Month's Consumption 9.00

2 Receivables Month's Gross Sales 0.25

3 Other Current Assets On Annual O&M Expenses 15.00%

18.24

Basis for assumption of above holdings are given below :

Fuel

18.25

The proposed 18 MW Biomass Power Plant of SAEL will be based on 100% Paddy Straw . Paddy is a

Khariff Crop which is plante in June & harvested in September . Paddy Straw , which remains in the

field after paddy cultivation is used as Biomass in Power Plants .

18.26

Next Crop ,ie , mainly Wheat , is planted in December . Thus , Paddy Straw which remains in the field

post paddy cultivation, is required to be removed from the field within 2 months time, viz October &

November every year .




18.27

For collection of Paddy Straw , SAEL will be utilising services of contractors who will contact the

farmers and utilise equipment like Cutter , Raker , Baler , Tractors , Trolleys etc to remove paddy straw

from the field in Bales & supply the same to Biomass Collection Centres (10 Nos) ,which SAEL proposes

to open or to the Power Plant .

18.28

Considering that 3 months requirement of Paddy Straw can be procured during removal of Paddy Straw ,

ie , during October & November every year plus one month's requirement of paddy straw can be procured

thereafter , 9 month's stock holding of paddy straw has been suggested . Genearlly about 0.50 to 1 month's

stock of paddy straw will be kept at power plant and balance paddy straw will be stored in 10 Nos

Biomass Collection Centers .

Recievables

18.29

Power generated at the proposed 18 MW Biomass Power Plant of SAEL will be sold to the PSCPL Grid as

direct sales to them . Bills drawn on PSCPL for supply of Power will be raised at monthly intervals and

paid within a week , for which SAEL will allow a discount of 2% on Bill Value (as stipulated in PPA) .

Accrodingly, 0.25 month's receivables have been suggested on Power Sales .

Other Current Assets

18.30

Other Current Assets have been estimate @ 15% on Annual O&M Expenses as per CERC Guidelines .




Bank Finance for Working Capital

18.31

Computation of Working Capital Requirement at various operating levels under PBS Method are shown

Annexure - F/XIX . Assessed Bank Finance (ABF) for working capital in the first operating year comes to

Rs 19.53 Crores as shown below :

Rs in Crores

2019-20

(3Mths)

2020-21

2021-22

a) Total Current Assets -

27.38 34.21 39.47

b) Less : Current Liabilities - 1.00 5.00 7.00

c) Working Capital Gap (WCG) -

26.38 29.21 32.47

d) Net Working Capital (NWC) -

6.84 8.71 10.47

e) Assessed Bank Finance (ABF) -

19.53 20.50 22.00

f) ABF to TCA - 71.35

% 59.93

% 55.74

%

g) NWC to TCA - 25.00

% 25.46

% 26.52

%

h) Sundry Creditor to TCA - 0.00%

0.00% 0.00%

I) Other Current Liabilities to TCA - 3.65%

14.61%

17.73%

j) Inventories in days Net Sales -

134 137 139

h) Recievables in days Gross Sales -

8 8 8

k) Sundry Creditors in days Purchases -

0 0 0

18.32

Requirement of Margin Money for Working Capital at the end of 2019-20 (3 Months) is Rs 6.84 Crores .

This would be met from Long Term sources and as such have been




included under Project Cost .

18.33

Estimation of Working Capital under Traditional Method has also been undertaken and details are

furnished in Annexure - F/XIXA . Working Capital Limit under Traditional Method wroks out to

Rs 20.23 Crores , which is more than the suggested Working Capital Limit of Rs 19.53 Crores estimated

under PBS Method shown in Para - 18.31 above .

DSCR

18.34

Term Loan repayment schedule and DSCR during the 2019-20 (3 Mths) to 2030-31 are given below .

Overall Gross DSCR comes to 1.78 and Overall Net DSCR comes to 2.31 . Minimum Gross DSCR comes

to 1.66 in the financial year 2027-28 & 2028-29 . (Please refer to Annexure - F/XXI for details) .

Sl.N

o. Item

2019-20 (3

Mth)

2020-21

2021-22

2022-23

2023-24

2024-25

1

Term Loan Installment (Rs in Crores)

0.00 1.00 5.00 7.00 8.00 9.00

2 DSCR (Gross) 2.19 2.38 1.96 1.78 1.74 1.70

3 DSCR (Net) 0.00 16.00 3.81 2.78 2.50 2.29

Sl.N

o. Item

2025-26

2026-27

2027-28

2028-29

2029-30

2030-31

1

Term Loan Installment (Rs in Crores)

10.00 11.00 12.00 13.00 13.00 9.75

2 DSCR (Gross) 1.68 1.67 1.66 1.66 1.73 1.72

3 DSCR (Net) 2.12 2.00 1.90 1.81 1.83 1.76

FACR




18.35

Fixed Assets Coverage Ratio during 2019-20 (3 Mths) to 2030-31 are given below :

Rs in Crores

Sl.N

o. Item

2019-20 (3

Mth)

2020-21

2021-22

2022-23

2023-24

2024-25

1 Net Block of Fixed Assets

132.33

125.66

118.98

112.31 105.6

3 99.00

2 Term Loan Outstanding 98.75 97.75 92.75 85.75 77.75 68.75

3

Fixed Assets Coverage Ratio (%)

134.01%

128.55%

128.28%

130.97%

135.86%

144.00%

Sl.N

o. Item

2025-26

2026-27

2027-28

2028-29

2029-30

2030-31

1 Net Block of Fixed Assets 92.49 85.98 79.65 73.83 68.01 62.19

2 Term Loan Outstanding 58.75 47.75 35.75 22.75 9.75 0.00

3

Fixed Assets Coverage Ratio (%)

157.43%

180.07%

222.79%

324.52%

697.51%

NA

KEY FINANCIAL PARAMETERS

18.36

The Key financial parameters for the project for 2019-20 (3 Mths) to 2030-31 are given below :

Rs in Crores

Sl.N

o. Item

2019-20 (3

Mth)

2020-21

2021-22

2022-23

2023-24

2024-25

1 Tangible Net Worth (TNW) 41.01 47.75 58.19 69.58 81.97 95.37

2 ABF for Working Capital 19.53 20.50 22.00 22.00 22.00 22.00

3 Net Working Capital 6.84 8.71 10.47 11.87 13.36 14.95

4 Current Ratio 1.33 1.34 1.36 1.40 1.43 1.47

5

Current Ratio without considering TL Installment payable within 1 year

1.40 1.67 1.79 1.90 2.02 2.13

6 Total Outside Liabilities to 2.95 2.59 2.10 1.67 1.33 1.06




TNW

7

Total Term Liabilities to TNW

2.45 2.05 1.60 1.24 0.96 0.72

8

Cash Surplus for Future Capital Investment

2.31 11.45 21.75 31.81 41.31 50.30

Sl.N

o. Item

2025-26

2026-27

2027-28

2028-29

2029-30

2030-31

1 Tangible Net Worth (TNW)

109.86

125.38

142.07

160.12 178.6

3 196.3

7

2 ABF for Working Capital 22.00 22.00 22.00 22.00 22.00 22.00

3 Net Working Capital 16.65 18.46 20.39 23.43 29.86 42.92

4 Current Ratio 1.50 1.54 1.58 1.67 1.94 2.95

5

Current Ratio without considering TL Installment payable within 1 year

2.26 2.38 2.52 2.66 2.80 2.95

6

Total Outside Liabilities to TNW

0.83 0.64 0.48 0.34 0.23 0.16

7

Total Term Liabilities to TNW

0.53 0.37 0.23 0.12 0.05 0.04

8

Cash Surplus for Future Capital Investment

58.83 67.00 74.82 82.32 89.96 99.79

BREAK EVEN ANALYSIS

18.37

Break - even Analysis for 2019-20 (6 Mths) to 2030-31 are shown in Annexure - F/XXIII . The salient

features of Break Even Analysis is given below :

Rs in Crores

Sl.N

o. Item

2019-20 (3

Mth)

2020-21

2021-22

2022-23

2023-24

2024-25




1 Break - even Sales 12.54 49.32 49.18 49.26 48.86 48.01

2

Capacity Utilisation at Break even Sales

43.80%

41.46%

40.02%

38.87%

37.38%

35.58%

3 Cash Break - even Sales 7.87 31.22 31.05 30.56 29.58 28.22

4

Capacity Utilisation at Cash Break even Sales

27.49%

26.24%

25.27%

24.12%

22.62%

20.92%

Sl.N

o. Item

2025-26

2026-27

2027-28

2028-29

2029-30

2030-31

1 Break - even Sales 46.53 45.02 42.49 38.26 35.32 32.17

2

Capacity Utilisation at Break even Sales

33.39%

31.26%

28.54%

24.85%

22.17%

19.49%

3 Cash Break - even Sales 26.47 24.28 21.61 18.41 14.76 10.85

4

Capacity Utilisation at Cash Break even Sales

19.00%

16.86%

14.52%

11.96%

9.26% 6.58%

PAY BACK PERIOD

18.38

Simple Payback Period for the Project comes to about 4 Years & 11 Months as per details furnished in

Annexure - F/XXIV .

IRR

18.39

Pre-Tax and Post Tax Internal Rate of Return on Project Cost comes to 18.18% and 15.90% respectively

as detailed in Annexure - F/XXV & F/XXVI .

SENSITIVITY ANALYSIS

18.40

Sensitivity Analysis of the Project has been carried out separately with following 4 Sensitivity Factors .

Profitability analysis under each factor is detailed in Annexure - F/XXVII to




F/XXX & the corresponding

Overall Gross and Net DSCRs are given below :

Sl.N

o. Item

Gross DSCR

Net DSCR Annexure

Ref.

a.

Operating Level reduced by 5%

1.66 2.11 Annexure -

F/XXVII

b. Power Tariff reduced by 5% 1.52 1.89

Annexure- F/XXVIII

c. Fuel Cost increased by 5% 1.63 2.07

Annexure -F/XXIX

d.

Interest Rate Increased by 1% (Term Loan From 10% to 11%) (Working Capital From 10.5% to 11.5%)

1.73 2.24 Annexure -

F/XXX

e. Base Case 1.78 2.31

Annexure - F/XVI

18.41

It can be seen from the above that the project can adequately absorb all the five Sensitivity Factors .

3. POLLUTION CONTROL & WASTE MANAGEMENT

3.1 The type of pollutions, which affect the environment, emanating from the biomass plant can be classified as follows:

Air Pollution Water Pollution Thermal Pollution Noise Pollution

3.2 The pollutants generated from the biomass plant are as follows:




a) Dust and particulate matter in the flue gas

b) Fly ash from the hoppers

c) Furnace bottom ash

d) Effluent from water treatment plant

e) Sewage from the Plant

Control Methods for Air Pollution

Dust and Particulate Matters

3.3 The pollution control norms stipulate a maximum dust concentration of 30 mg/ N. cu.mt. The proposed bio-mass plant will have an Bag filter, which will separate the dust from the flue gas. The dust concentration is the flue gas leaving the Bag filter will be maximum 30 mg/N.cu.mt.

3.4 The dust concentration level in the chimney will be periodically monitored. Corrective steps will be taken, if the concentration is not within the acceptable limits.

Sulphur Dioxide and Nitrogen Dioxide

3.5 The main fuel in the proposed bio-mass plant is Paddy Straw which contain little sulphur, (about 0.61%) hence sulphur dioxide produced will have insignificant effect. The stack height will be as per the local pollution control board stipulations (30 M). The Nitrogen di-oxides produced in bio-mass firing is very low as it contains only 1% Nitrogen.

Fly Ash and Bottom Ash

3.6 Ash content in Paddy Straw by mass is about 22%.Annual consumption of Paddy Straw at 100% capacity utilization is estimated at 189 Thousand




MT/Annum. Thus annual Ash generation will be 41,628 MT say 42,000 MT. Ash collected form the bottom of furnace (bottom ash) and the ash collected in the air heater hoppers and ESP hoppers are taken to an ash silo through a pneumatic conveying system. The ash from the silo will be disposed off to farmers, who can use the ash as manure for the crops and to local industries, who will utilize the ash for manufacture of bricks, for road building material, for land filling locally and in Cement Grinding Unit for producing PPC.

3.7 The following norms will be maintained for Pollution Control.

(a) Emission Level - 30 mg / Nm3 at Stack Outlet

(b) Noise Level - 90 dB (a) average at 1.5 m from equipment

(c ) Water Pollution - Appropriate means will be taken to

eliminate water pollution. Waste water from R.O Plant and other equipment will be utilized for dust suppression & green belt development

(d) Thermal Pollution - Water used in the surface condenser to

condense steam will be cooled in a Cooling Tower. Water let out from Cooling Tower will have a temperature very close to the ambient. Thermal Pollution will be negligible

Consents 3.8 Position in respect of Consents relating to Pollution Control is given below:

(a) As discussed earlier, rated Capacity of Bio-mass based Power Plant of SAEL being 18 MW, the Plant will be required to obtain EC from MOEF–State Level.

(b) SAEL will apply for consent to establish from Punjab Pollution Control Board to establish 18 MW

Power Plant in due course.

3.9 Other consent which the unit will be required to obtain are given below:

i) Punjab Energy Development Authority (PEDA) – LOA Obtained & IA executed.

ii) PowerPurchase Agreementwith theconcerned powerutility. – already executed

iii) Landuseconversion

iv) Canalwater/ground waterusageapproval

v) NOCfromForestDepartment.

vi) NOCfromvillage Panchayat

vii) Clearancefrom StateInspectorofBoilers




viii) Clearancefrom ChiefElectricalInspector

ix) NOCfromdistrict Fire Officer.

x) Export – Import Code xi) IEM – already received

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