Project

EXECUTIVE SUMMARY 1.Auro Mira Wind Sakthi Limited, promoted by Auro Mira Energy Company Private Limited (AME), proposes to set up two wind farms, with an aggregate capacity of 49.5 MW, in Dist. Hassan, Karnataka. 2. The turnkey contract for the Project would be awarded to Suzlon Energy Limited (SEL), which is one of the largest Wind Turbine Generator manufacturers in the world. SEL has successfully implemented wind farm projects of more than 3700 MW capacity in India and 500 MW in other countries. 3. Based on the company's negotiations with SEL, the cost of the project has been estimated at Rs.290.75 crore, which is proposed to be financed by way of equity capital of Rs.101.75 crore and term loan of Rs.189 crore (DER of 65:35). 4. The power generated from the wind farm would be sold to the State Discoms at Rs.3.40/ unit. The company would enter into a PPA with BESCOM (a distribution licensee) for a period of 20 years. 5. 6. The company has requested XYZ to part finance the project by way of The project is financially viable (average DSCR 1.40). Sensitivity term loan and syndicate the balance debt for the project. analysis indicates that the Project would remain financially viable under modest adverse fluctuations. 7. XYZ’s current committed exposure to the Group is Rs.20 crore, by way of RTL sanctioned to Sugnaneswara Hydel Power Private Limited, in March 2009. The project is under implementation. Loan disbursements have not yet commenced. 8. 9. Head-ICG has approved the proposal for the taking up detailed appraisal. The proposal has been referred to Risk Department for rating, which is awaited. Auro Mira Wind Sakthi Limited – Detailed Appraisal Note 10. It is proposed to sanction rupee term loan of Rs.75 crore as XYZ's share of the Project Debt and tie-up the balance debt of Rs.114 crore with other banks/ FIs. DETAILED APPRAISAL NOTE PART I - PROMOTER / COMPANY ASSESSMENT A. COMPANY Background 1.01 Auro Mira Wind Sakthi Ltd (Auro Mira Wind) was incorporated on 15th August 2008 as a 100% subsidiary of Auto Mira Energy Company Pvt. Ltd (AME), with the main objective of generating green energy using wind resources. In the first phase, Auro Mira Wind proposes to implement a 49.5 MW wind power project, which is scheduled to be completed by March 2010. 1.02 Auro Mira Wind has not yet started its commercial operations and, therefore, no financial statement has been prepared for the company till now. Management 1.03 As per the Articles of Association, Auro Mira Wind would have at least 3 and not more than 12 Directors on the Board. At present, the company has 3 Directors viz. S/Shri N. Srinivasan (47, CA, more than 22 years experience), I. Krishna Pillai (40, Civil Engineer with over 17 years experience in the wind power sector) and P. Chandramouli (58, Mechanical Engineer and MBA from IIM-A), all of whom are from the promoter group. 1.04 The day-to-day affairs of the company are being looked after by Shri R. Balaji, Chief Operating Officer, who is supported by professionals in various fields. B. 1.05 PROMOTERS AME, incorporated on December 07, 2005, is promoted by first generation entrepreneurs viz. S/Shri N. Srinivasan, P. Chandramouli, Santosh Kamat and I. Krishna Pillai, who have prior experience in the sector. Mr. Srinivasan, a Chartered Accountant, was the CEO of Shriram TTG (the wind division) for over 10 years. Shri Krishna Pillai has over 17 years’ experience in wind resource assessment, micro-siting, procurement of land, liaison with 2 Auro Mira Wind Sakthi Limited – Detailed Appraisal Note Electricity Boards, execution of civil & electrical works, etc. He has secured more than 30,000 acres of land in Tamilnadu, Karnataka, Andhra Pradesh and West Bengal, on behalf of almost all the wind energy companies in the country. Shri Santosh Kamat, former CEO of Shriram Infrastructure, has experience in business development, organisation building, marketing and supply chain management. AME has identified business opportunities in generation of clean energy from biomass, small hydel and wind farm. In the long run, it proposes to enter the solar and bio-diesel sector also. In the next 5 years, AME plans to invest approximately 300 million US$ to develop power plants of around 250 MW capacity based on renewable energy sources like wind energy, biomass & small hydel plants. 1.06 AME has more than 100 personnel, with experience in the fields of engineering, capital goods and power sector. It promotes SPVs for setting up different projects and provides necessary technical & managerial expertise to these companies. Major operational areas of AME are briefly described below: Biomass: AME owns & operates a 7.5 MW biomass power plant in Pudukottai, Tamilnadu (registered with UNFCCC under CDM), which is the first ISO-certified biomass plant in India. The second plant of 10 MW was commissioned in February 2009 at Kalupatti, near Madurai. The third plant of 15 MW is proposed to be commissioned by 2010 in Tirunelveli & Kanyakumari Districts of Tamilnadu. By FY 2012, AME proposes to set up 50 MW biomass-based power plants in Karnataka and Maharashtra. Hydel: AME has already obtained licence for 80 MW hydel power plants to be set up in Karnataka & Orissa and will add another 50 MW in North & North Eastern States. These projects would be executed in stages, over next 5 years. The 1st plant of 13.5 MW is being constructed at Gulburga district in Karnataka. The construction work for the 2nd plant of 9 MW (also in Karnataka) is expected to begin sometime in September 2009. Wind: AME has identified land suitable for setting up wind farms of 150 MW aggregate capacity. These projects would be executed over next 3-4 years; the 3 10 Nil 22.61 0. Working Results (Rs.36 42.I. Working results and financial position 1.25 Other non-cash expenses 0.23 22. Analyses of AME's financial position for last 3 years are given in Annexure .30 Operating profit 0.54 0. there was no major income in AME as it was mainly investing in the SPVs. Till FY 2008.) in February 2007.80 Nil 42.07 Interest & financial charges Nil Depreciation 0.5 MW project under consideration.69 22. the company did not prepare any profit & loss account till FY 2008.34 (*) mainly technical fees earned from professional services.60 74.59 19.35 1.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note land acquisition process has started.10 Other income 0. AME is in the advanced stage of discussion with different WTG suppliers for supply of the equipment on turnkey basis.10 24. 2009 Total Income (*) 3.18 (Rs. For the proposed 49. The only source of income was interest on deposits and mutual funds.76 Nil 75. crore) For the year ended March 31. It has also installed wind mast in different locations for carrying out an in-depth study of the wind pattern. since this amount was nominal.95 4. crore) 2009 1.74 Profit / (loss) after tax (0. Financial Position As on March 31.53 51.27 0.62 0.42 4 2008 0.67 .65 0. acquired its first energy generation unit (Auro Mira Bio Energy Pudukottai India Ltd.21) Gross cash accruals 0.08 17.07 AME. Net fixed assets Investment Current Assets Current Liabilities Secured & unsecured loans Net Worth Net Worth represented by: Equity share capital Reserves & Surplus 2007 0. The highlights of the same are as under. incorporated in December 2005. Suzlon Energy has been short listed as the turnkey contractor. . Management.78 crore (for Sugnaneswara Hydel Power Private Ltd. • Over 22 years experience in Finance. 102. is Name & Designation Pradeep Mallik. Srinivasan. the promoter company. Electrical • Ex-Managing Director. Promoter Director • Ex-CEO of EPC Energy Division of Shriram Group.08 Sr. no 1 The existing Board of Directors of AME.46 crores. • AME does not have any secured or unsecured loan on its own balance sheet. the sanctioned but un-drawn debt aggregates to another Rs.8 MW) in Tamil Nadu under Auro Mira Vaayu Energy Ltd.22.22 crore on behalf of various subsidiaries against facilities sanctioned to them. 71 crore for financing the project cost of Rs. Wartsila Engineer from India Limited IIT-Madras.22 crore debt outstanding as on date. • Ex-Chairman of CII (Western Chartered Region) and Ex-President of Engineer Bombay Chamber of Commerce Chartere d Account ant 5 2.54 75. N.65 42.) • Auro Mira Group is setting up another windmill project (19. • As on March 31.53 crore were by way of equity share capital in 14 different SPVs. Management profile 1. Chairman & Independent Director Education Experience given below.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note Net Worth 22. 2009. • Current Assets include unsecured loans to one of the subsidiaries and also certain market investments. the company has furnished Corporate Guarantees for an aggregate amount of Rs. Project Management.27 • The investments of Rs. The company has approached IREDA for financial assistance of Rs. 59. 59. 44. • Over 40 years' experience in T & Diploma in D sector and in gas/liquid-fuel Business based power plants. The SPVs have approximately Rs. organisation. • 3. Lovelock & Lewes. which employs over 100 people. • FCS and MBA 6 . Promoter Director Mechanical • Engineer and MBA (from IIM-A) • Mechanical • Engineer and Management Graduate • 4. Krishna Civil Engineer Pillai. EID Parry India Over 35 years experience in industry at various senior level positions Worked with General Signal. Over 20 years experience in service industry in India & UAE. building. “Cape Institute of Technology” at Nagercoil in Tamilnadu. He has performed the above activities in Tamilnadu. FICWA. Over 17 years experience in wind resource assessment. Also runs a private engineering college. Promoter Director 5. Andhra Pradesh and West Bengal. Subbu Subramanian. P. Mr. liaison with Electricity Boards. Bajaj Tempo Former CEO of Shriram Infrastructure. Karnataka. SPX Corp. I. In AME he is mainly responsible for purchase of potential sites and arranging for all the required clearances. FCA. Owns Cape Infrastructure. where his scope of work included business development. no Name & Designation Education Experience Operations & Supply Chain Management Earlier served in Fisher Xomax. execution of civil & electrical works.000 acres of land in the above states. procurement of land.Chandramou li.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note Sr. Promoter Director • • • 6. Santosh Kamat. on behalf of almost all the wind energy companies in the country. Fisher Xomax. marketing and supply chain management. Akay Industries. approvals. etc. securing more than 30. Tanfac. micro-siting. Auro Mira Wind Sakthi Limited – Detailed Appraisal Note Sr. no 7. 8. Name & Designation Independent Director (representative of Baring Private Equity Partner – since resigned) Rahul Bhasin, Independent Director (representative of Baring Private Equity Partner) P. Vishwanath, Independent Director Education (from IIM-A) Experience MBA IIM-A) (from • Over 18 years global experience in investment & banking; • Senior Partner in Baring Global; • Ex-Chairman of BFL Software Chartered Accountant • Over 35 years experience in Financial Accounting, MIS and Consultancy • Co-founder of Alacrity Housing Limited The Board of the holding company is adequately broad-based and its composition may be considered satisfactory. 1.09 The day-to-day affairs of AME are being looked after by S/Shri. R. Balajee, Chief Operating Officer, and Y V Krishnam Raju, General Manager. Shri Balajee, a finance professional, has 24 years work experience, of which 12 years were in wind energy sector. Shri Raju is a metallurgical engineer, with post-graduate diploma in Business Management. He has 30 years' work experience in various corporates, especially in the areas of quality control, purchase & material planning. Shareholding pattern 1.10 The authorized share capital of AME is Rs.1 crore, divided into 10 lakh equity shares of Rs.10/- each. As on June 30, 2009, the paid-up equity share capital of AME was Rs.59.80 lakh. Baring India Private Equity Fund II holds around 53.58 crore equity shares, representing around 89.6% of the total paid- 7 Auro Mira Wind Sakthi Limited – Detailed Appraisal Note up equity capital; balance shares are with the promoters. Details are given below: Sr. No. 1 2 3 4 5 6 7 8 Name of the share-holder Baring India Private Equity (Fund-II) N. Srinivasan P. Chandramouli I. Krishna Pillai Santosh Kamat Uday kumar Mathiyalagan R. Jayajothi Total No of equity shares held 535,790 56,654 1,190 2,856 1,190 100 100 100 597980 % of total 89.60 9.47 0.20 0.47 0.20 0.02 0.02 0.02 100.00 Considering that the three Promoter Directors hold a minority stake in the company, a condition has been stipulated that the Promoter Directors would not resign / withdraw from AME’s Board without obtaining the prior consent of XYZ / Lenders’ Agent. 1.11 Baring Private Equity International was founded in 1984, with ING Group, a Dutch major, as the anchor investor. The Indian operations started in 1997-98 and, in August 2004, the Fund Managers bought out ING. The Indian operations are now carried out under Baring Private Equity Partners (India) Pvt. Ltd. (BPEP), which has floated two funds till now for making investments in India. Fund-1, with a corpus of USD 175 million, stands fully invested. One of the investments was in mPhasis BFL (the company was created through merger of mPhasis Corporation and BFL Software). Fund-II, registered in Mauritius, was created last year, with a corpus of USD 500 million. It is a longterm fund, with a 10-year investment period, extendible by another 2 years. BPEP uses Barings brand name as well as network. Baring International provides BPEP governance guidelines & other regulatory framework for effective management of its funds and charges royalty for this service. 1.12 BPEP is a strategic investor in the holding company (Auro Mira Energy Company Private Ltd). After assessing the technical & managerial capabilities 8 Auro Mira Wind Sakthi Limited – Detailed Appraisal Note of the Promoter Directors, in October 2007, BPEP committed to make longterm investment of USD 175 mn in the Group (of which, an amount of USD 22 mn has already been invested). BPEP & the promoters of Auro Mira Group have entered into a Share Subscription Agreement, copy of which is not available with XYZ. The company has confirmed that the Agreement does not contain any specific clause for BPEP’s exit, except for a stipulation that the company would go public within 5 years i.e. some time in 2012. Besides, the Agreement provides for the flexibility of bringing in additional PE investors in future, if so required by the company. It may also be mentioned here that though AME would be the 100% share-holder of Auro Mira Wind (the project company), a condition has been stipulated that 51 % of the envisaged paid-up equity capital of Auro Mira Wind would be pledged with the Project Lenders. C. 1.13 Sr. No. 1 GROUP COMPANIES AME has floated a number of SPVs for implementing different projects, Status brief details of which are given below: Name of the group companies Activity 2 3 4 5 6 Acquired in February 2007; Auro Mira Bio Energy Energy generation from bio earned net profit of Pudukottai India Limited mass 35 lakh in FY 2009. Commenced Auro Mira Bio Energy operations in April Madurai Limited -do2009 Financial Auro Mira Energy Closure in Biopower Private Limited -doprogress Auro Mira Bio Systems Kanyakumari Private Limited -do-doAuro Mira Bio Sakthi Projects Limited -doMerit Biozone Limited To act as the holding company for units generating energy from bio fuel - 9 5 MW wind energy Limited project in Karnataka Financial Closure in [present project] progress with XYZ D. 2009) Sugnaneswara Hydel Power Private Limited: Rs.8 MW Wind energy Financial Closure in Limited project in TN progress with IREDA Auro Mira Wind Sakthi 49. 20 crore disbursement yet) (no 10 . Auro Mira Vaayu Energy 19. buying Private Limited land and studying wind potential after installing wind mast.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note 7 8 9 10 11 12 13 14 Auro Mira Energy Hydel To act as the holding Company Private Limited company for hydel projects Financial closure Small hydel project in achieved (XYZ Sugnaneswara Hydel Karnataka assisted) – project Power Private Limited under implementation Sri Jagannath Power Projects Private Limited Small hydel project Applied for licence Sharan Powers Private Financial assistance Limited tied-up with L&T Infrastructure Small hydel project Finance.COMPLIANCE WITH THE EXPOSURE NORMS (i) (ii) XYZ’s existing exposure to the company: Nil XYZ’s existing exposure to the Group (as on July 31. Auro Mira Wind Power To act as the holding Projects Limited company for wind power projects Auro Mira Energy For developing wind farm Infrastructure India infrastructure viz. 46% Pre-defined limit Status of complianc e Comp any Group 95 0. 2009) 249.2400 crore + Rs.58% 15% + 5% for Complied with infrastructure projects + 5% with Board/EC approval 40% + 10% for .6400 crore + Complied with Rs. crore) Company Nil Group 20 (iv) Prudential Limits (As a percentage of XYZ's capital funds of Rs.1600 crore for infrastructure projects Existing (Rs.16.302 Exposure to Pre-defined limit / power sector as a Status % of total industry portfolio 6.430 XYZ’s Total Industry Portfolio (as on March 31.600 Complied with crore for infrastructure projects 95 Rs.241 crore as on March 31. 11 . 2009) Project ed exposu re (Rs.do infrastructure projects + 5% with Board/EC approval (v) Industry exposure (Power sector) XYZ’s exposure to Power Sector as on March 31.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note (iii) Internal exposure norms Proposed Pre-defined limits Status (Rs.99% 10% of XYZ’s total portfolio / Complied with. crore) 75 % of XYZ’s capital funds 0. crore) 75 Rs. 2009 17. first generation entrepreneurs for developing green energy projects in biomass. As per newspaper reports. ______________________ 12 . BPEP. OVERALL PROMOTER ASSESSMENT  Auro Mira Group was promoted by professionallyqualified. most of whom are professionals having relevant background. Its biomass-fuelled power plants have started generation.  The overall promoters’ assessment is satisfactory. is not expected to affect BPEP's long-term investment plans in Auro Mira Group.this. which is considered to be a pioneer in the private equity space in India. BPEP's nominees are on the Board of the holding company.  The Group has been in business for around 4 years.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note E. the hydel project is under implementation. however. the two founding partners of BPEP have recently parted ways . who have long experience in wind energy sector. The promoter Directors. the main holding company of the group.  The proposal complies with the internal exposure norms and RBI's prudential limits. wind energy projects are negotiating Financial Closure. has assets under management of USD 1 billion in India. have now built a team of more than 100 members.  Baring Private Equity Partners (BPEP) has taken a majority stake in Auro Mira Energy Company. small hydel and wind energy sector. each of 1500 kW rating) at Gopalpura & Modurgudda in Hassan District.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note PART II . For setting up a wind farm.02 Layout of a typical wind farm is given below. almost on demand.01 Auro Mira Wind proposes to set up wind farms of 49. But. WTGs.5 MW aggregate capacity (33 nos. (SEL) has a ready land bank and so WTGs can be commissioned within six to seven months from the Financial Closure. Suzlon Energy Ltd. this enables them to install the wind farms in a short period of time. 13 .TECHNICAL ASSESSMENT A. Karnataka. the project developer has to obtain approval from the State Government/ SEB and also complete a host of other formalities with the concerned agencies. 2. which takes considerable time. PROJECT BACKGROUND 2. specialised wind farm developers like Suzlon. Enercon or Vestas already possess land banks with good wind potential and also have the expertise to secure the requisite clearances expeditiously. For present project also. FEE 30FLL 2006 dated 17. 2. with no agriculture produce and about 22 km from the nearest road head. acquisition of the project site.2008 and agreement no. C. The sites are in forest land. being forest land.03 LOCATION AND SITE The proposed wind farm locations have been selected after considering the following benefits: • High wind potential. electrical works including installing the unit transformers & laying the overhead transmission lines.05 TURNKEY CONTRACT The company would enter into a turnkey contract with Suzlon Energy Ltd. 1500 kW of WTGs. the project sites cannot be mortgaged to the developer’s lenders. The said land has been allotted to SEL on 30 years’ lease vide notification no. 2.4. insurance / risk cover upto commissioning and free O&M for the first two year of operations (with spares and consumables). Government of Karnataka has allotted 72. so that the project could be commissioned on or before March 2010. The scope of SEL’s work includes supply. the user agency can sub-lease the land in favour of the developer within a specified period. • Proximity to an existing sub-station and flexibility of wheeling the power for third party sale. However. 2/2008-2009 dated 23.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note B.2008. civil works including the construction of approach roads on the hilly terrain. As per the specimen lease deed for use of the forest land for development of wind farms. model draft PPA).O. • Favourable State Government policies (attractive tariffs.04 The proposed wind farm would be located in two different villages in Hassan District of Karnataka. setting up sub-station for evacuation of power. 2.5 MW wind farm at Madurgudda and 46.518 hectares of leasehold land to SEL for setting up a 43. • Possibility of securing the requisite clearances at the earliest. G. 14 . (SEL) for setting up the proposed wind farms. SEL.4.5 MW wind farm at Gopalpura. installation and commissioning 33 nos. on a hilly terrain. Australia. etc. SEL) shall be immediately intimated of any invocation of the assignment clause and the new party shall adhere to all the terms & conditions of the Turnkey Contract.06 SEL.5% of the contract price for every week’s delay. In 2008-09.e. South Korea. workshop. reactive power and transmission losses within the firm. US. Till March 31. If the delay exceeds 5 weeks. The ownership of such facilities would. 2009. the company would be entitled to revoke the contract. 2. as may be necessary for maintaining the wind farm assets. unless otherwise specifically agreed to between the parties. provided the Supplier (i. UK. an ISO 9001-2000 company. service centre. is the 5th largest wind turbine manufacturer in the world. It is one of the leading players in Asia and has operations in a number of other countries viz.e. either in whole or in part. Netherlands. In the event of delay in commissioning of the project. enter into a Turnkey Contract with Suzlon Energy Ltd and/ or its affiliate companies. for execution of the Project. SEL would pay liquidated damages to the company @ 0. which worked out to a market share of over 50% in India and 15 . before seeking any disbursement of the assistance. The contract would contain warranties regarding machine availability. the turnkey contract shall contain a suitable clause whereby the Purchaser (i.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note through its associates. Auro Mira Wind) shall have the right to assign the contract in favour of its lenders (or their nominees) at any time. subject to a maximum value of 2. The salient features of the draft Turnkey Contract are given in Annexure-II. SEL has installed wind farms with aggregate capacity of around 4500 MW in India and 8650 MW world-wide. the company shall. A condition has been stipulated that. power curve. China. communication & transportation facilities. Besides. The turnkey contract also envisages time bound implementation of the project. Germany. etc. to the satisfaction of XYZ. vest with Suzlon Group. however. without any deviation. suitable offices & storage facilities. SEL commissioned 749 MW in India and 2041 world-wide. would also establish and maintain in the vicinity of the wind farm.5% of the contract price. Besides manufacture & installation of WTGs.. couplings.000 employees with more than 4000 engineers.08 The essential components of a Wind Power System are:  Wind Turbine Generator. Godrej. Kajaria Ceramics Ltd. 2. 1250 kW and 600 kW rating. which is then used to rotate the shaft of an electric generator.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note 12. In addition to its role of a turnkey contractor and O&M operator. blades and towers at its various production facilities. Specification of the wind turbine generator 2. Dhariwal Group. Tata Power. with various mountings inside such as shafts. It has a large team of erection. 6 in India (spread in six States) and 5 overseas. Some of the prestigious corporate customers of SEL are Bajaj Auto. SEL has about 10. mechanical parts (yaw control and pitch control). spread across its manufacturing facilities. which are then sold or leased out to SEL's customers. developing approach roads and securing requisite permissions/clearances. where it manufactures WTGs of 1500 kW. SEL also manufactures generators (rotor and stator windings/assembly). hydraulic system. rotor blades. Madras Cement. including nacelle. etc.09 A WTG converts the kinetic energy of the wind into rotary motion. supervision and commissioning engineers for site planning and co-ordination with sub-contractors for obtaining access ways. also acquire the land with potential for wind power generation.7% world-wide. Jindal Group.  Tower  Anemometer / Wind Vane  Transformer & transmission lines  Control Room (including the control panels) 2. SEL is also involved in wind resource mapping. various sites and offices. identification of suitable sites. through its associate companies. gear box. alternator. Ajanta Clocks. control panels. Aditya Birla Group. control mechanisms. hub.07 SEL currently has a total of 11 manufacturing units. yaw motor. cooling system and other electronic panels. and secure necessary approvals / clearances from the Government agencies for setting up the wind farm projects. technical evaluation and planning of wind power projects. SEL. The power output of a WTG depends on the velocity & density of the wind and also the size 16 . The minimum velocity of wind. Air brake.pitch/full blade type Mechanical brake. The WTGs are also equipped with integrated lightning 17 . at which a 1500 kW WTG can operate.5 mts) Horizontal axis wind turbine with flexi-slip control Independent electro-mechanical pitch system for each blade and Suzlon flexi-slip system 20 years 4 meter/sec 14 m/s 20 m/s 52. It has a micro-processor based fully automatic control system with an interface to Central Monitoring System and also adequate safety systems.5 meter Approved SEL warrants a combined machine availability of 95% per year (for all the WTGs put together) The above machines (WTGs) have the ability to withstand erratic wind and grid conditions.hydraulic disc brake.6 to 18.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note (diameter) of the rotor.10 Specifications Suzlon make S-82 1500 kW 82 meter Tubular Type (Tower ht: 76 mtrs.5 m/s 16. activated by hydraulic pressure + mechanical rotor lock. is around 15 km/h (4 m/s). variable rotor resistance via Suzlon flexi-slip system.4 rpm (Rotor) 1511 rpm (Generator shaft) Up-wind 3 Epoxy bonded fiber glass 1 Planetary stage-2 Helical stages Single speed induction generator with slip rings. The technical specifications of SEL’s S-82 WTG is given below: Particulars Turbine Rated Power Rotor Diameter Tower Turbine type Power regulation Design lifetime Cut-in wind speed Rated wind speed Cut-out wind speed Extreme Wind Speed Rated rotational speed Operating range rotational speed Orientation No of blades Blade Material Gear Box type Generator Type Braking Output Voltage Hub Height C WET Approval Machine availability 2. Hub ht: 78. activated by hydraulic pressure. 690 Volts AC 78.30 rpm (Rotor) 1511 rpm (Generator shaft) 15. 2. 49. appoint an independent technical consultant for assessing the wind energy generation potential of the proposed wind farms and disbursement for the project would commence only upon receipt of a satisfactory report from the consultant. It has been informally ascertained from DLF Group that the operating performance of these WTGs has been satisfactory.a. This sub-station would be connected to all the unit 18 . S-82 WTGs are in operation in India.88% & 29. has installed 45 of these WTGs in its windfarms spread across the country. which is 4 km from Gopalpura and 2. a wind pattern study was Assessment of the potential for energy generation conducted by SEL at both the potential locations. The wind data collection in Gopalpura was carried out for a period of two years (from January 05 to December 06) and at Modurgudda for a period of one year (from January 07 to December 07).12 SEL is developing wind farms at Madurgudda and Gopalpura with an aggregate capacity of 90 MW. Around 15 WTGs have already been installed in these sites.77 lakh units p.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note protectors. To cater to these upcoming wind farms. S-82 is an established model and about 1000 nos.5 MW would be handed over to SEL and the balance capacity would be acquired by other clients. which would prevent sudden shutdown in case of lightning. at Modurgudda (equivalent to a PLF of 30. Of this. Power evacuation 2.58 lakh units p. which entered the wind power sector last year.5 km from Madurgudda.11 OTHER TECHNICAL ARRANGEMENTS For identifying suitable sites for the wind farm. A condition has been stipulated that the company shall. C. DLF Group. SEL has already established a sub-station in Doddakunja village. which was installed at a height of 56 meters.55% respectively). The data collected by the wind mast was analysed by SEL and the gross wind power generation potential (per WTG) in the sites was estimated at 40.a. at Gopalpura & 38. most of which have also started generation. to the satisfaction of XYZ. based on its own wind mast. irrespective of whether or not it has a continuing arrangement with SEL for O&M of the WTGs. the milestones are is given below: Sr. However. 2. Land acquisition 2.) 4. as would be required for establishing connection between its existing sub-station in Doddakunja village and the state grid. all the WTG owners shall always have unhindered and irrevocable right of sharing the common evacuation facility. Receipt of WTGs at the site. 2. this would be enhanced to 90 MVA. 2010. which is around 10 km from SEL’s substation.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note transformers (i. Besides.14 In terms of the turnkey contract. Installation of WTGs at site 6. the 690 V / 11 kV transformers catering to the individual WTGs) by overhead conductors. Commissioning of WTGs / Commercial Operation Date Period 3 weeks from the Zero Date 12 weeks from Zero Date 10 weeks from Zero Date 13 weeks from Zero Date 13 weeks from Zero Date Not later than March 31. BESCOM’s nearest sub-station is in Kadavinakote village. SEL would lay the overhead transmission lines. the O & M charges for these facilities (including the sub-station) would be collectively borne by all the WTGs connected to the said sub-station. 2010 19 . Implementation Schedule 2. 7. 11 kV electrical power would be converted to 220 kV power and this would be supplied to the state grid. Internal lines. approach road construction.e.15 The project is schedule to be commissioned by March 31. on a pro rata basis.13 The present capacity of SEL’s sub-station is 50 MVA. In SEL’s sub-station. fencing. etc. Item 1. No. SEL would set up and maintain the necessary infrastructure facilities for evacuation of the power generated by the WTGs supplied by it. Infrastructure development at the site (levelling. which would be adequate for servicing the proposed 90 MW wind farms. cabling. 5. etc. SEL would also provide free O&M services to the windfarm. 2009 Manpower 2. After COD. a reasonable stock of spares will be maintained so as to reduce any WTG down time. for the first 2 years. Subsequently the O&M activities would be carried out through an in-house team.16 The implementation of the wind farm project would be awarded to SEL on a turnkey basis. Auro Mira Wind is in the process of building up a suitable operation and maintenance (O&M) team which would supervise the wind farm operations during the free period also (first 2 years) and shall then take over the responsibilities from Suzlon team. After the company takes over the O&M. 20 .Auro Mira Wind Sakthi Limited – Detailed Appraisal Note (COD) Zero Date has been assumed as October 1. OVERALL TECHNICAL ASSESSMENT been declared by MNRE as windy area and the sites have been identified by SEL after monitoring the wind characteristics over an extended period. S-82 is a wellestablished model and about 1000 nos. The area has  Suzlon Energy Ltd. A pre-disbursement condition has been stipulated that the company would enter into a turn-key contract with SEL and the terms of the contract would be satisfactory to XYZ. is recruiting skilled manpower and building up a professional O & M team.  During the first two years. (SEL) is the largest Indian manufacturer of Wind Turbine Generators and the fifth largest in the world. A condition has been stipulated that an independent technical agency shall evaluate the data and estimate the wind energy generation potential of these sites and the loan disbursements shall commence after receipt of satisfactory report from the independent agency. therefore.  Wind farms at the proposed sites have high wind potential. the construction and operational risks have been mitigated effectively. envisaged on the project implementation front.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note D. which is developing another wind farm in Tamil Nadu. the O&M of the wind farms are proposed to be undertaken in-house Auro Mira Group. After expiry of 2 years.  The power evacuation arrangements (upto SEB sub-station) will be taken care of by SEL as part of the turnkey contract.  The overall technical arrangements of the Project are satisfactory. subject to the inspection and approval of Chief Electrical Inspectorate of the State Government. No difficulty is. SEL would carry out the O & M of the windfarms. _________________ 21 . SEL and its group companies would be executing the project on a turn-key basis. With the involvement of SEL in all aspects of the project. It would furnish its warranty for the major parts of the machine and also guarantee the machine availability. of these WTGs are in operations today in India. whilst until four years ago it held the number 4 position for several years.9 35. has slipped down to no.0 2225.5% 106.0 1244.MARKET ASSESSMENT Wind power scenario .0 2862.0 732.0 352.7 22 Added Capacity (in 2008) [MW] 8351.7 439. In Asia.6% .6% 1.0 523.0 1880. Eight countries now represent almost 80% of the world market for new wind turbines.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note PART III . One year ago.3% 27. Denmark is still considered a leading wind energy country worldwide.5% 22.4 1595.7% 37.7 Growth Rate (2008) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 USA Germany Spain China India Italy France United Kingdom Denmark Portugal Canada The Netherlands Japan Australia Ireland 49.0 676. Denmark.1% 34.9 949.0 9587.0 1009.3 12210.7% 7.01 USA is today the leading wind power market and has taken over the global number one position from Germany.8% 54.0% 38.World 3. USA and China accounted for more than 50% of the wind turbine sales in 2008.0 898. with around 20% of the total electricity supply in the country being generated through the wind power route.1% 37.2 1655. 9 position (in terms of total capacity).4% 10. The capacity installation figures are given below: Position in 2008 Country Total capacity installed (end 2008) [MW] 25170. the pioneering country in wind power generation.0 2369. only 5 countries represented 80% of the global sales.4% 23. this indicates that wind turbine installation has started taking roots in more number of countries around the world.0 1737.0 3736.8 16740.4% 28.0 3287.0 3404.9 3160.2 6298. China & India. However.0 23902.0 478. With aggressive capacity build-up by USA.0% 82. China is getting ahead of India and becoming the largest wind power producer in the continent.0 1494. 85% 21.531 1.03.858 -5. Against this.9 17 Austria 994. the total installed capacity was about 10.50% 2.5 196.561 Installed capacity (MW) till 31.30% 20.36% 14.530 -48.0 95.9 13.09% State Andhra Pradesh Gujarat Karnataka Kerala Madhya Pradesh Maharashtra Orissa Rajasthan West Bengal Tamil Nadu Others Total (All India) (Source: Indian Wind Energy Association) 23 .9 18 Greece 989. a massive exercise of wind monitoring and wind resource assessment has been carried out by the Government agencies.645 11.55 4.3% 71.584 2.4% 13. wind turbine sector registered a growth of 23% over the previous year.02 235.0% 28.71% 11.90% 42.000 MW in March 2009.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note 16 Sweden 1066.09 122 1566 1327 27 213 1939 738 1 4305 3 10242 Installed capacity as % of the gross potential 1.4 116.30% 15.171 1.0 (Source: World Wind Energy Report 2008) Wind power scenario-India 3. Gross potential (MW) 8.19% 77.019 4.1 28.0 20 Norway 428.000 MW.968 10. indicating that substantial future growth potential still exists. The state-wise break-up is as under. In 2008.5% Since 1990.7 19 Poland 472. Indian Wind Energy Association (IWEA) has estimated that India’s gross potential for wind power generation is of the order of 48.4% 1. 8 MW 122. Kerala.3 MW 456. it may be observed that nearly 50% of the fresh capacity was installed in Tamil Nadu.9 Rajasthan 738.6 MW 28.9 MW 636.1 Total 10242 MW 3.7 MW March 2007 March 2006 March 2005 3492.2 MW 469.1MW 584.3 MW 2 MW 338 MW 1.5 MW 187.8 MW 358.8 MW 122. Rajasthan and Madhya Pradesh.4 MW 1011.8 Pradesh Kerala 27. together with solar power. on the other hand. Tamil Nadu has the highest installed capacity in the country (~ 48% of the total).5 MW 410. which improves their financial attractiveness (generating additional income through sale of CERs).6 MW 1.5 West Bengal 1.4 MW 1755. renewable energy technologies offer possibilities of distributed generation at or near the points of actual consumption.7 MW 2894.1 MW 3594 MW 10. wind energy is the most promising technology for reducing the 24 . Gujarat.5 Karnataka 1327. On one hand.1 MW 40. Besides grid supply augmentation.9 MW 538.04 March 2008 3873.1 MW 8754 MW 7091 MW In the coming years.03 Major potential sites for wind energy are in the states of Tamil Nadu.3 MW 121. which can reduce the peaking loads and also save on costly maintenance of transmission & distribution network.5 MW 2 MW 1252. The state-wise break-up of the additions in installed capacity (in the past five years) is given below. In fact.4 Andhra 122.9 MW 2 MW 253 MW 1.6 MW 2037 MW 821. Andhra Pradesh. State March 2009 Tamilnadu 4304. leading to reduction in the capital as well as operating cost and.1 MW 5341 MW 120. Karnataka. Maharashtra. the renewable energy is expected to contribute more to the generation of electricity in the country.7 MW 1001. the cost of conventional (fossil fuel-based) power is increasing everyday.7 MW 1487. Wind power projects qualify under the Clean Development Mechanism (CDM).4 Maharashtra 1938.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note Gross potential vs installed capacity per state 3.1 MW 284.1 MW 1.5 MW 57. the efficiency of wind power generation has been increasing.5 Pradesh Madhya 212.0 Gujarat 1566. including lower direct taxes (on account of 80 % depreciation in the first year of installation). profit-earning industries have been heavily investing in wind power projects. the State has proposed to develop additionally 2269 MW of wind power projects during the five years up to 2014. Indian market offers enormous scope for capacity addition to the wind power generation. under which every utility has to source a certain percentage of its supply from renewable energy sources. so as to attract private investment in this area. wheeling and banking of electricity generated by wind power projects. etc. After the Electricity Act 2003. involving a total investment of Rs. often consisting of clusters of individually owned generators. generation based incentive of Rs. purchase. several fiscal incentives have been extended by Indian Government to the wind energy sector.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note greenhouse gas (GHG) emission.0.14. quick clearance of FDI investments. As a result of these policies. Government of India has announced several fiscal incentives for the wind power projects. large wind farms have started coming up as Independent Power Producers (IPPs). In recent times. the various statutory clearances would be granted by the Government 25 .06 Under Karnataka Renewable Energy Policy 2009.05 Ministry of New and Renewable Energy (MNRE) has issued guidelines to all State Governments to create an attractive environment for the export.50 per unit to the wind farms supplying power to the state-grid. customs & excise duty relief on purchase of WTG equipment. Government Policies 3. To facilitate successful & expeditious commissioning of the targeted wind projects.626 crore. 3. availability of soft loans (from IREDA). With only 19% of the potential wind energy being harnessed in the country so far. More than 97 % of investment in the wind sector in India has come from the private sector. which is the key objective of CDM. Simultaneously. exemption from income tax (on net earnings from the project for a block of 10 years). State Electricity Regulatory Commissions (SERC) are promoting wind energy through preferential tariffs and have introduced Renewable Portfolio Standards (RPS). covering registration of the project with CDM Executive Board of UNFCCC and also for CER sales. KREDL will undertake Wind Resource Assessment and offer the identified windy sites for development on Public Private Participation/BOOT mode. The 17th EPS report has projected that the peak demand would increase to 8486 MW by FY 2011-12. A condition has been stipulated that XYZ shall have the first right of refusal for extending Carbon Credit Consultancy Services to the company. Karnataka has wind energy generation potential of 11. Wind power generation in Karnataka 3.02. coupled with the existing ‘renewable purchase obligations’. and the company’s share in the revenue of carbon credits has been assumed at 56 paise per kWh of energy sold to the grid. especially in the inland hilly areas. the wind project allotment will be restricted to 50 MW at a given area each time. especially wind power generation.a. Carbon Credit 3. 26 sites in Karnataka have been approved for setting up wind-farms. In order to cater to this increasing demand. As per the present estimates. On the basis of the wind speed data collected and analyzed under the aegis of the MNES (erstwhile MNRE).a. To avoid locking of huge capacities. which indicates a huge potential for harnessing the wind energy in Karnataka. the State Government is encouraging substantial capacity addition in the renewable sector. the company is likely to earn additional revenues of around Rs.08 The peak demand of power in Karnataka (in FY 2008-09) was 6827 MW against the peak supply of 6156 MW. The proposed project is expected to generate about 36.531 MW.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note under a Single Window Mechanism. 7 crore p. The state has a favorable regulatory environment also and the salient features of the State policies are as under: 26 . 3.09 As may be observed from the Table given in paragraph 3.07 Auro Mira Group's wind projects are expected to get registered with UNFCC and be eligible for carbon credits under CDM of Kyoto Protocol. from CER Sales.598 CERs p. thus leaving a deficit of 671 MW (as per MOP data). against which the installed capacity is only 1327 MW.06. (KPTCL). has already approved the evacuation scheme for 90 MW wind-farms being set up by Suzlon at Maddurgudda & Gopalpura in District Hassan. the State Transco.3. The payments would be made to the windfarms within 30 days of the receipt of invoice. after deducting the wheeling losses and the charges for the reactive power drawn by the windfarms from the state grid. the satisfactory track-record of BESCOM would mitigate the payment risk for the lenders.10 In the Power Sector. mentioned that Karnataka Power Transmission Corporation Ltd. 3. In terms of the PPA finalized for sale of wind power. then it would be free to sell the output to the third party.40/ kWh for a period of 10 years. Since BESCOM would be the sole buyer of electricity from the windfarm. Tariff after 10 years would be decided at the beginning of the 11th year and.3. As per the prevailing practice. if it is unacceptable to the company. GO No EN 216 NCE 2006 dated 2. The wind power producers normally enter into PPAs with the discoms / state electricity utilities for a period of 20 years from COD.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note Allowed Allowed Rs. subject to emergency conditions. the power generated from the wind farms in the State would be sold to the State Discoms at a fixed tariff of Rs.11 As mentioned in 3. however.09. Renewable Purchase Obligation (*) 20% Electricity duty 100 % exemption (*) In terms of Karnataka Government notification no. 27 . Parameters Captive Usage Third Party Sale Sale to Electricity Board Karnataka As per the latest annual performance rating of the SEBs (carried out by CRISIL & ICRA in 2006 on behalf of the Ministry of Power). which is extendable by another 10 years.40 / kWh for 10 years which is extendable for another 10 years. the State Discoms would allow the wind farms to operate as baseload generating stations and grant them ‘Must Run Status’. It may be.3. BESCOM was rated as the 4th best SEB in the country.2007 3. BESCOM would sign the PPA only after the wind farm is commissioned. Karnataka is one of the progressive states in India. Electricity Regulatory Commission in the State has determined Rs. The sale of power would also be secured against a L/C for one month billing. Besides. compensation payable by the discom. • The overall marketing assessment is considered satisfactory. Overall Marketing Assessment • The wind power to be generated by the proposed wind farm would be sold to the State Discom under a long-term PPA. no difficulty is envisaged on the off-take front. etc to safeguard the financial interest of the wind power producers and the Project Lenders. not project specific) and would apply for a period of 10 years from COD. • The PPA would contain provisions like termination right in the event of default by the power purchasers. In this scenario. In view of the same and since the distribution companies in the state are under obligation to purchase a minimum 20% of their total power requirements from renewable energy sources.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note 3. The sale proceeds would be routed through a TRA. the project is not likely to face any problem on the off-take front. This is a general tariff (i. The PPA would contain provisions for third party sale. • GOI has been placing great emphasis on generation of clean energy and has announced several fiscal incentives for the wind power projects. 28 . facing difficulties in meeting their renewable power purchase obligations.e.50 per unit by way of Generation Based Incentive (GBI).40/unit as the price for procurement of wind power by the distribution licensees. the company would be eligible to receive (from IREDA) another Re 0. While the states have declared renewable power purchase obligations for the distribution licensees. many of the wind turbines have been installed for captive use and the distribution licensees are. therefore. termination of the PPA.3. to be opened with XYZ.12 The salient features of the draft PPA are given in Annexure-III. 01 PROJECT COST The break up of the project cost is given below: (Rs. misc. however.15 crore. KPTCL has approved the evacuation scheme for the wind farms. The scope of the contract includes acquisition of land. before the loan disbursement commences. SEL has already established a sub-station in the nearby area. SEL would supply 33 nos. erection & commissioning.75 Particulars Turnkey Contract (land.2 As per the terms informally agreed to by both the parties. making arrangements for evacuation of wind power (including establishing the internal grid for power evacuation). etc. A condition has been stipulated that. the contract is. 4. construction of civil works.282.80 290. plant & machinery.518 Ha) to SEL on a 30-year lease.15 crore) 4.15 5. To facilitate the power evacuation. The company is still holding price negotiations with SEL and expects to sign the firm contract in September 2009. fixed-time Turnkey Contract would be entered into between Auro Mira Wind & SEL and the terms of the same would be satisfactory to XYZ. electrical works (including setting up the Transformer Yard).65 2. erection & commissioning of plant & machinery. a fixed-price. 29 . 1500 kW WTGs at a total cost of Rs. Government of Karnataka has allotted the site (72. 282.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note PART IV – FINANCIAL ASSESSMENT A. yet to be executed. supply of plant & machinery. Crore) Amount 282. fixed assets) Interest during construction Preliminary & pre-operative expenses Total Turnkey Contract (Rs. free O&M in the first two years of operations (with spares and consumables). 3. without any recourse to XYZ or other Project Lenders. 100. was Rs. In view of the same.15 crore).a. PAD apprised the wind power project of DLF Home Developers Ltd.45 crore). etc. where the capital cost worked out to Rs.94 crore) 4. Another 15% would be drawn in the third month and fourth month and balance 35% in the sixth month. The debt draw-down schedule has been chalked out with a provision for 50% equity capital being infused upfront and the balance amount being raised pro-rata with the debt. In September 2008. For the purpose of calculations.80 crore per MW.4 Auro Mira Wind would enter into a fixed-price turnkey contract with SEL / its group companies for setting up the wind farm.4.10 crore). when the capital cost was estimated at Rs.6. no contingency provision has been made in the project cost. The project was appraised by XYZ in February 2008. (Rs 3. finance charges. consultancy fees. Auro Mira Wind's capital cost of Rs.96 crore per MW.00 crore. 30 ..8 MW (126 X 800 kW) in Gujarat and 82.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note Preliminary & pre-operative expenses (Rs.4 MW (103 X 800 kW) in Karnataka. was. term loan interest has been considered at 12% p. The company is also hopeful of negotiating a reduction in the estimated price of the turnkey contract. Interest during construction (Rs.5 The company would make payment to SEL as per the terms of the Turnkey Contract. 5.5. administrative expenses.70 crore per MW may be considered reasonable. Project Cost comparison 4.6 The cost per MW of the wind power projects of Gujarat Paguthan Energy Corporation Ltd. The project is expected to be completed by March 31. In light of these.7 crore) 4. up-front fee (Rs. PAD also carried out the merchant appraisal of SAIL’s Wind Power Project at Salem. 2010. A condition has been stipulated that any overrun in the project cost shall be met by the company.5. Provision for contingency (nil) 4. Approximate draw-down during first two months would be around 25% of the total debt.0. In 2008.03 The preliminary and pre-operative expenses include stamp duty (Rs 0. a. confirming that it would make long-term equity investment in AME and continue to support its growth initiatives in the alternative energy space. AME.75% p. Equity contribution in the projects undertaken by Auro Mira Group are being mainly funded by Baring Private Equity Partners (BPEP).75% p. Debt (Rs.75 crore.a.7 MEANS OF FINANCE The cost of the Project. Currently.a. over the entire period of the RTL. BPEP has given a commitment letter to AME.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note B.75 65:35 35% financed as under: Particulars Equity contribution from holding company (35%) Rupee Term Loan from banks/ FIs (65%) Total DER Promoter’s contribution Equity share capital (Rs. which works out to Rs.e.75 189. is proposed to be Amount (Rs. The fee would be paid by the company on or before issue of the sanction letter. Equity Fund-II.290. estimated at Rs.75 crore) 4. 2011 i. shall be payable to XYZ as Management Fee. no problem is envisaged in timely infusion of the equity capital in the project. crore) 101. about 90% of the equity capital of AME is being held by BPEP. the NPV of the interest differential between 12% p. which presently works out to 11. Till date. 189 crore) 4. (payable monthly). a Mauritius-based Fund. and 11.00 290. In addition. BPEP has invested about USD 22 million in AME.9 It has been proposed that the term loan would carry interest at XYZ’s BPLR minus 100 bps.e. through Baring India Pvt. In view of the same.. The loan shall be repayable in 36 equal quarterly instalments commencing from January 1. after a moratorium of 9 months from the scheduled 31 .101. 4. A condition has been stipulated that at least 50% of the envisaged equity capital would be raised before the company seeks any disbursement of the RTL.70 lakh.8 The entire equity capital for the project is to be infused by the holding company i. would be assigned / charged to the Project Lenders. XYZ would also receive appraisal fee of Rs.113. 32 . the same cannot be mortgaged to the Project Lenders. Security 4.25% on its share of the loan. The total appraisal fee. AME. The term loan would be. syndication fee and management fee would aggregate to around Rs. The company would also create 2 quarters’ DSRA in favour of the Project Lenders. the promoter company.0% p. 4. up-front fee.11Since the project is being set up on forest land.10The company has requested XYZ to arrange for the total debt of Rs 189 crore. 4. secured by way of first charge on all the movable assets of Auro Mira Wind (including the receivables. in the event of the company defaulting in servicing the dues of the Project Lenders.75 crore and syndicate the balance amount of Rs.175 lakh. The Project Documents. therefore. etc). sale of the moveable properties would be permitted and the new party shall be allowed to operate the Project at the existing site on the same terms & conditions as agreed for the original allotee. with quarterly rests). bank accounts.a. Karnataka Renewable Energy Development Ltd (the renewable energy agency of the State Government) would issue a ‘Facilitation Letter’ confirming that. (IRR. A condition has been stipulated that.75 crore works out to around 13. would furnish its corporate guarantee and pledge (with the Project Lenders) 51% of the equity capital of Auro Mira Wind.90 crore with other banks.12 The receivables from BESCOM would be routed through a Trust & Retention Account (TRA) opened with XYZ. within 6 months from COD.10 lakh and up-front fee @ 0. XYZ's return on the proposed assistance of Rs. If these fees are factored in.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note COD (door to door tenure of 10 years).40% of the total debt. It is proposed to sanction RTL Rs. The company has agreed to pay XYZ a syndication fee @ 0. 83 6.60 6. As per the scheme.50 1.30 45.89 14.61 2.50 per kWh would be provided to the wind energy producers through Indian Renewable Energy Development Agency (IREDA).91 10. for a period of 10 years.30 46.11 24.83 6.60 52. VI & VII respectively. for sale to 33 .89 1.52 2012 39.83 14.40 1.31 1.75 1.51 18.86 20.16 12.89 2. so as to provide thrust on generation of electricity.87 5.60 6.60 52.59 12.89 3.0.39 14. Net Sales (under PPA) Income from CDM Total Income Gross profit (PBIDT) Interest on term loan Depreciation Tax Net profit Gross cash accruals DSCR (year-wise) DSCR (average) IRR (post-tax) 4.30 46.30 52.30 52. (ii) set up IPPs.75 1. The projections have not considered 80% depreciation provision in the 1st year of operations.87 14.63 32.63 12.48 22.83 39.IV. 4.40 12.41 1.77 The project would earn profit from the beginning. Ministry of New and Renewable Energy (MNRE) has announced a Generation Based Incentive (GBI) scheme for the grid connected wind power projects.36 77.95 14. with a minimum 5 MW installed capacity.60 52.62 2019 39.69 15. The scheme eligibility would apply to producers (i) who would not avail of accelerated depreciation benefits for making investments in wind power projects. Summary of the projected performance are as follows.11 2.94 17.13 The assumptions underlying the profitability estimates are given at (Rs.89 1.30 45.57 7.83 6.26 2.85 14.43 14.83 6. over and above the SERC tariff.32% 2017 2018 39.14 2011 39.83 6. Projected Profitability Statement. crore) Year ended March 31.41 25.36 16.35 14.30 49.50 50.47 14.30 46.30 51.14 1.89 14. rather than on capacity addition.21 2013 39.43 46.55 1.87 45. a GBI of Rs.23 2015 2016 39.82 25. PERFORMANCE INDICATORS Annexure.60 52.89 1.10 112.87 22.16 2014 39.83 6.83 6.60 52.89 1.60 52. Projected Cash-flow Statement and Projected Balance Sheets are furnished in Annexure – V.50 63.45 94.83 39.96 1.41 20.89 2.52 14.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note C.49 40.75 1.60 52. who are 34 . Besides. the security profile for the project loan has also been strengthened by stipulating pledge of company’s shares up to 51% of the paid-up equity capital (additional security). In September 2008. but the rating was maintained at ‘BB’ (score of 53). To ensure Management continuity. (v) all revenues (including cash flows from sale of CER) to be routed through a TRA (XYZ would be the TRA Agent).33. the proposal was reviewed by Risk Department in November 2008.17Various concerns of the Risk Department (for the earlier project) have been addressed in this proposal by stipulating suitable conditions for protecting the interest of XYZ / Project Lenders viz. (iii) achieving financial closure (pre-commitment condition). Chennai Branch).5 MW and the DER has been improved to 65:35 as against 70:30 earlier (for the 20 MW project). (i) signing of the turnkey contract to the satisfaction of XYZ (pre-disbursement condition).Auro Mira Wind Sakthi Limited – Detailed Appraisal Note the State grid and (iii) projects not set up either for captive consumption or for third-party sale (merchant plants. At the request of the Dealing Group (ICG. The proposal was then rejected by RCC as it was rated below the investment grade. 4. This has improved the financial viability of the project. etc).15Auro Mira Group had earlier planned to set up a 20 MW wind power project in Karnataka and sought financial assistance of Rs.15 & minimum FACR of 1.16The project size has now been increased to 49. (iv) maintenance of financial convenants like minimum DSCR of 1. a condition has also been stipulated that the Promoter Directors of AME (holding company) would not withdraw from AME’s Board without obtaining XYZ’s prior approval. (vi) maintenance of 2 quarters DSRA. Rating Committee assigned ‘BB’ rating (score of 52) to the proposal.18Risk Department also expressed concern about the background and financial resourcefulness of the promoters of Auro Mira Group. etc. 4. 4. (ii) undertaking from AME (holding company) for meeting any cost over rum and / or shortfall in funds (pre-commitment condition). 4.40 crore from XYZ. the PLF has been assumed lower at 27% (instead of 29.3. It may be mentioned that all the 3 promoter Directors are qualified professionals and have prior experience in the sector. before seeking any disbursement of the proposed assistance. In the event of company’s failure to establish the same to the satisfaction of XYZ. 35 . the company meets the basic eligibility criteria for GBI. it shall arrange for additional promoters’ contribution by way of equity share capital / interest-free sub-ordinated unsecured loans from the Promoter. Besides.40 /unit. the project would be financially viable (average DSCR 1.19 Risk Department’s other major concern was that the tariff assumed in the financial projections include sale to corporates at Rs.0. of India / IREDA. GBI of Rs.67% as considered in the original proposal). the company shall satisfy XYZ and establish that the Project would receive the Generation Based Incentive (GBI) from Govt. 4. It may be mentioned that. 4. Because of the lower gearing. even without GBI of Rs.0.50 per unit has also been considered since the company would satisfy all the eligibility criteria for the same. With this lower DER of 62:38.40. of which.4 /unit. The project debt would then reduce by around Rs.20Risk Department expressed concern regarding the company’s eligibility for the Generation Based Incentive (GBI). to safeguard the financial interest of Project Lenders. 9 crore and the commitment of the respective Lender would also decrease proportionately. Besides. After assessing their technical & managerial capabilities. The profitability projections have been now reworked with sale of power only to the State Discom at the SERC approved tariff of Rs. an amount of USD 22 mn has already been invested.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note the first generation entrepreneurs. so as to lower the Debt Equity Ratio for the project to 62:38. the base case DSCR (average) still works out acceptable at 1. a condition has been stipulated that. as laid out under the guidelines provided by Ministry of New & Renewable Energy. Baring PE Fund has committed to make long-term investment in the Group.30). which appear to be optimistic.50 / unit. Auro Mira Wind Sakthi Limited – Detailed Appraisal Note 36 . • The DER would be 65:35.75% of the EPC cost. GBI .Auro Mira Wind Sakthi Limited – Detailed Appraisal Note D. The turnkey contractor for the project would be Suzlon Energy Ltd.32% 12.40 2 15% increase in O 1. SENSITIVITY ANALYSIS Sr. BPEP has almost 1 billion USD of assets under its management. one of the largest wind turbine manufacturers in the world.21While the Project would be sensitive to reduction in PLF. even with a conservative PLF of 25%.11 1. • OVERALL FINANCIAL ASSESSMENT The capital cost of the wind farm works out to Rs.3. Considering the scale of BPEP’s operations. O & M charges -1.70% 1. a leading private equity player. the turnkey contract would be executed to the satisfaction of XYZ. holds about 90% equity stake in AME.30 by 2% (i. Since the implementation schedule is short and a fixed-price turnkey contract would be entered into.34 & M expenses and increase in the interest rate of Project Loan by 100 bps 3 Reduction in PLF 10.e.Re.50/ kWhr. E. tariff – Rs. which may be considered acceptable for infrastructure projects.70 crore per MW. Parameter Project IRR (post-tax) 12. which is considered reasonable. Baring Private Equity Partners (BPEP).16 1.08% DSCR (min) DSCR (avg. CER price – Euro 11.5. A condition has 37 .0. the holding company of the Project SPV. In India. no delay is envisaged in timely infusion of the promoters' contribution. the operations of the company would still remain financially viable. Before the commencement of loan disbursements.40/ kWhr.) 1 Base Case (*) 1. No. The promoter's contribution would come in the form of equity infusion by AME. interest on RTL – 12% 4. sensitivity analysis has not been carried out for any increase in the project cost.08 1. PLF of 25% instead of 27%) (*) PLF – 27%. ********************** 38 .40. before the loan disbursement commences. • Project IRR (post-tax) is 12.e. which are satisfactory.32% and the average DSCR works out to 1.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note been stipulated that minimum 50% of the equity capital would be raised upfront i. Pre-construction Stage Land acquisition Turnkey The Turnkey Contract negotiated by Auro Mira Contractor Wind with Suzlon Energy Ltd (SEL) includes the cost of land. Power Purchase Agreement would be entered into at the time of commissioning of the WTGs.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note 5.r. 39 . no problem is envisaged in acquisition of the land by Auro Mira Wind. The overall position in this regard may be considered satisfactory. Considering the electricity deficit in Karnataka and the obligation of the distribution licensees to meet a minimum amount of their total requirement from renewable sources. and a Comfort Letter would be issued by KREDL within 2-3 months. State Government enters into a fresh lease agreement with the Project Developer w. the plots utilized by the Developer for installing its WTGs. a State Government agency. After the Turnkey Contract is entered into and the micrositing work for the wind farms is completed. no delay is envisaged in execution of the PPA. The matter would be initially examined by KREDL.t. Considering SEL’s established trackrecord in this field. SEL would request the State Government for canceling its lease on the areas earmarked for setting up the proposed WTGs. Finalization of key Project The entire execution of the project would be contracts/agreements Developer carried out by Suzlon Group. which has proven track record in this regard.01 PART – V RISK ANALYSIS The analysis of various risks in the proposal and proposed mitigation measures are summarised below. The turnkey contract for supply of WTGs would be awarded to SEL before the loan disbursement commences (predisbursement condition). though it is understood that the entire formalities normally take 3-4 years for completion. KPTCL has already approved the evacuation scheme for the wind farms. Subsequently. Risk Factors Risk Proposed mitigation mechanism Carriers I. Government of Karnataka has already allotted the land to SEL on a 30-year lease. Moreover. The execution of the entire project would be carried out by SEL and its group companies. AME. II. In India. DLF Group.77 million (around Rs. one of the leading global players in the wind energy industry.e. Infusion of AME The entire equity capital for the project is to be Promoter’s (holding infused by the holding company i. which indicates its intention of making long-term equity investments in the renewable energy business being pursued by the Group.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note Obtaining the Turnkey SEL would arrange for various statutory / nonstatutory approvals Contractor statutory clearances & approvals required for & permits setting up the project. Baring Private Equity Partners (BPEP). A pre-disbursement condition has been stipulated that promoters would bring in minimum 50% of the envisaged equity contribution towards the project. which have proven track record in this regard. About 90% of project the equity capital of AME is held by Baring developer) India Pvt. Besides. when SEL 40 . which has set up wind power projects of more than 88. is one of the leading PE investors in India and it has given a written commitment (in October 2007) that it would invest USD 176. a PE investor. Construction Risk Technological risk Turnkey The WTGs would be supplied by Suzlon Contractor Energy Ltd (SEL).850 crore) in AME. The S82 turbines are well established in the Indian wind-farms and are capable of operating under erratic wind conditions.5 MW capacity. A suitable predisbursement condition has been stipulated in this regard. BPEP has issued another such letter in August ’09. Equity Fund-II. All Contribution company the projects undertaken by Auro Mira Group are of the being funded through this route. BPEP has assets of more than USD 1 billion under its management and no difficulty is envisaged in its timely infusion of the required equity contribution. the turnkey contract would stipulate a defect liability period of 24 months from the date of commissioning. has also install this model in its wind farms. reiterating its commitment to make long-term equity investments in the Group. Thus. Operational Risks Off take risk Project Developer 41 . with a guarantee of minimum machine availability of 95%. termination of PPA on BESCOM’s default. As per the wind energy policies in the states. In keeping with the thrust given to wind power projects in all the states. Turnkey The turnkey contract would have a time-bound Contractor implementation schedule and also a fixed-price contract for supply.5% of the contract value). Considering the integrated nature of SEL’s operations. the company would also be entitled to revoke the contract. the PPA would be signed only after the WTGs are commissioned.5% of the contract value per week with maximum liability of 2. at a tariff determined by the SERC. It is also stipulated that the PPA would have provisions for LC covering 30 days sales. which would increase the IDC.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note Cost / Time overrun would provide free O&M to the company. A condition has been stipulated that the company would enter into a PPA with the state discom within 30 days of the COD. which would safeguard the financial interest of the Project Lenders. However. Any cost overrun could be only in event of delay in commissioning. the distribution licensees are obligated to fulfill a minimum of 20% of their total requirement through purchase of renewable energy. The company will be then entitled to invoke the penalty clause in the contract and recover liquidated damages from SEL (@ 0. etc. III. the technological risk in the project is considered to be nominal. erection and commissioning of the wind farm. no offtake risk is envisaged. If the delay exceeds 5 weeks. the possibility of any delay in the supply is considered to be nominal. Auro Mira Wind would enter into a Power Purchase Agreement with the state discom for a period of 20 years. It does not emit green house gases and does not pose any environmental hazard. Environmental risks Wind energy is a renewable source of energy and provides an alternative to the use of fossil fuels. Wind power projects are designed to operate and withstand effects of earthquake and storms. under which every utility has to source a certain percentage of its supply from renewable energy sources. the PLF has been assumed at 27%. Weak wind Project The inland hilly areas in Karnataka have good conditions (lower Developer potential for wind power generation. which would be built-up during this period. A wind pattern study was conducted by SEL at both the sites. the company's operations would remain financially viable. Operations & Turnkey Suzlon Group would provide O&M assistance Maintenance Contractor/ during the warranty period of 2 years.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note Government policies Project / guidelines Developer/ Project Lenders Ministry of New and Renewable Energy (MNRE) has issued guidelines to all State Governments to create an attractive environment for the export. Force Majeure Force Majeure events will be insured by the company to the extent possible. After the Project expiry of this period. based on its own wind mast and the results were encouraging. wheeling and banking of electricity generated by wind power projects. Project Developer 42 . The generation) proposed sites have high wind potential and the area has been declared by MNRE as windy area. O&M of the project Developer would be taken care of by the in-house team. Keeping in mind the emphasis being currently given on global warming. State Electricity Regulatory Commissions (SERC) are promoting wind energy through preferential tariffs and have introduced Renewable Portfolio Standards (RPS). purchase. even with a lower PLF of 25%. but. any change in the policy/ guidelines is expected to be favourable to the wind power producers. In the financial projections. which has the distribution license for part of the Karnataka State. The payment risk in the project is thus considered to be within normal limits. as per the state wind energy policy. which would safeguard the financial interest of the Project Lenders. distribution licensees are obligated to source a minimum percentage of their requirements from renewable energy projects. the State Transco. termination in case of power purchaser’s default. has already approved the evacuation scheme for wind farms.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note Evacuation Risk Project Developer KPTCL has already approved the evacuation scheme for the wind farm. SEL already has an existing sub-station close to the project site. 43 . Moreover. KPTCL. In terms of the Turnkey Contract. As per the latest annual performance rating of the SEBs (carried out by CRISIL & ICRA in 2006 on behalf of the Ministry of Power). escrowing the receivables of the proposed windfarm. etc. with an aggregate capacity of 90 MW. being set up by Suzlon at Maddurgudda & Gopalpura in District Hassan. as mentioned earlier. The evacuation risk in the project is thus considered to be nominal. Besides. SEL would install the unit transformers and also lay cables for connecting the wind farm to its sub-station. The project Lenders SPV would enter into a PPA with BESCOM. BESCOM was rated as the 4th best SEB in the country. Payment Risk Project Karnataka is one of the progressive states in Developer/ India and has implemented a number of Project measures for power sector reforms. The PPA with BESCOM would have provisions for revolving L/C. Interest Rate (a) The company shall. Interest Reset . i FINANCIAL TERMS Sanction of Rupee Term Loan (RTL) of Rs. as may be outstanding from time to time.a.00 65% Equity 101.75 100% iv. iii Project cost and Project cost estimated at Rs. until the RTL is fully paid off. ii Project Setting wind farms of 49. As per the envisaged draw-down schedule and repayment terms. over the entire period of the RTL.5 MW aggregate capacity (33 nos..TERMS OF SANCTION A. crore) Particulars Amount % Debt 189. shall be payable by the company in arrears on 1st of each month (each an Interest Payment Date) and shall become payable from the first Interest Payment Date falling immediately after the date of first disbursement v.a. the Management Fee works out of Rs.a. (b) The interest.75 % p. which would be payable by the company on or before the issue of the Sanction Letter. and 11.75 crore to be means of finance funded at a debt-equity ratio of 65:35 as under: (Rs. as at (a) above. each of 1500 kW capacity to be supplied by Suzlon Energy Limited) at Gopalpura & Modurgudda in Hassan District. shall be payable to XYZ as Management Fee. (b) The company shall then pay interest at such reset rates (the Reset Interest Rate) as may be notified by XYZ to the company [the Interest Rate or the Reset 44 Amount vi. (a) XYZ shall have the right to reset the Interest Rate after expiry of 12 months from the date of first disbursement of the RTL and every 12 months thereafter (the ‘Interest Reset Dates’).75 35% Total 290.). pay to XYZ interest (fully floating) on the principal amount.75% p. under Project Finance Scheme. WTGs. at XYZ’s BPLR minus 100 bps p.a. (currently equivalent to 11. Management Fee The NPV of the interest differential between 12% p.290..75 crore. 70 lakh. on monthly basis.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note PART VI . Karnataka. shall be payable by the company to XYZ over and above the rates mentioned hereinabove.00 crore. x. ix. on or before the date of signing of the Rupee Loan Agreement. All Interest and other costs. expenses shall accrue from day to day and be calculated on the basis of the actual number of days elapsed and a year of 365 days. Liquidated Damages shall be payable on demand and in the absence of any such demand on the next Interest Payment Date falling after the date of default.25% plus applicable taxes on the amount agreed to be granted under the Rupee Loan Agreement. Any interest tax / other levies / duties. shall be hereinafter referred to as “the Applicable Interest Rate”]. nonrefundable and non–adjustable syndication fee @ 0. carry further interest at the Applicable Interest Rate (the Further Interest). Syndication fee The company shall pay to XYZ one-time.40% of the total Project Debt of Rs. plus applicable taxes. or in the absence of any such demand. as the case may be.189.1 45 lakh on or before awarding the . the company shall pay on such defaulted amounts. interest thereon or other monies (except liquidated damages) becoming due on their respective due dates. Interest tax. nonrefundable and non-adjustible up-front fee @ 0. computed from the respective due date until the date of actual payment. viii Liquidated In case of default in payment of any instalment of damages principal amount of the RTL. Up . liquidated damages at the rate of 2% per annum for the period of default. if applicable. which shall be payable as under: (i) Rs. in case the same be not paid on the respective due dates. xi. vii Further Interest All interest on the RTL and all other monies accruing due under the RTL Agreement or any other financing documents to be entered into between the company and XYZ shall. on the next Interest Payment Date falling after the date of default.front fee The Company shall pay to XYZ one-time. charges.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note Interest Rate. Such Further Interest shall be compounded monthly and shall become payable on demand. All rates of interest mentioned herein are exclusive of levies and duties interest tax and/or any such other levies / duties. (COD) xv. Rs. Balance amount on signing of the Common Loan Agreement. January 1. for the purpose of meeting any outstanding project liability towards the retention payment of the turnkey contract. xiii Legal fees and The company shall pay legal fees / charges to XYZ other charges towards preparation / review of legal documents. on the Interest Reset Dates. the company’s right to Drawal make drawal from the RTL shall cease at the end of 6 months from the scheduled COD (such period shall be called the “Availability Period”). Last date of Unless XYZ otherwise agrees. it shall have the right to prepay. XYZ's entire outstanding amount of RTL (and not in part). LLC would be appointed. (a) The principal amount of the RTL would be repayable in 36 equal quarterly installments w.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note syndication mandate. payable on or before issuance of XYZ’s LOI. The above fee shall be exclusive of the out-of-pocket expenses. Appraisal Fee xvi.e.f. Pre-payment (a) In the event of the Reset Interest Rate being not option acceptable to the company. xii. If required. Commercial COD for the Project has been tentatively fixed at Operations Date April 1. 2011 i. xiv. after a moratorium of 9 months from the COD. within a period of 90 days from the Interest Reset Date. xvii. (ii) 50% of the balance amount on receipt of the Sanction Letters from all the lenders. the company shall have the right to make drawal of the Project Assistance upto the end of 24 months from the COD.e.10 lakh (plus service tax and educational cess thereon). which would be claimed on actuals. for which the company would make the payment to LLC directly. The company shall pay the Applicable Interest Rate from the Reset Dates till such prepayment is made to 46 . 2010. However. Repayment (b) The repayment schedule mentioned in (a) above is tentative and would be reviewed by XYZ after the company commences its commercial operations. without any pre-payment premium / penalty. after giving at least clear thirty (30) days’ prior notice to XYZ. in lieu of such deposit. • Only after the company has given at least clear 30 days prior notice to XYZ of such prepayment • The amount of each pre-payment would not be less than Rs. 2 crore. which may be granted subject to such conditions as XYZ may deem fit to stipulate. to any party whatsoever. under any of the Financing Documents. 2010 and be renewed from time to time during the currency of the RTL. 47 xviii Debt Service Reserve . (b) The company may also prepay a part of the RTL. c) The company shall invest company shall invest the funds in DSRA only in permitted investments and securities as may be approved by XYZ. a) Create a Debt Service Reserve Account (DSRA).a. including payment of premium @ 1% p. 2010. without any prepayment premium. without obtaining the prior written approval of XYZ. from the surplus cash flow of its operations. on the outstanding amount upto the next Interest Reset Date. except for (a) & (b) above. Such letter of credit / bank guarantee shall be provided at least 1 month before December 31. any time during the currency of the RTL. before December 31. (c) The outstanding principal amount of the Rupee Term Loan shall not be prepaid.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note XYZ. subject to the condition that such voluntary pre-payment would be made: • Only if there is no overdue amount. for an amount equivalent to the ensuing 6 months principal and interest payment due to the Project Lenders. to meet the debt service requirements for the ensuing 6 months of principal and interest payment due to the Project Lenders. b) The amount accumulated in the DSRA shall not be used for any purpose other than for servicing of RTL and would be utilised only in case of a shortfall in the cash flows for meeting the company’s debt service requirements from time to time. from the cash flow available after meeting the debt service obligations or provide a letter of credit / bank guarantee acceptable to the Lenders. XYZ shall have the right to novate / assign the RTL in favour of any other lender.a. the company shall maintain the following financial covenants: (i) Minimum Debt Service Coverage Ratio (DSCR) of 1.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note xix Financial Covenants During the tenure of the loan. as well as providing Carbon Credit Advisory Services to the company on mutually acceptable terms and conditions in addition to providing all other banking services. (ii) Minimum Fixed Asset Coverage Ratio (FACR) of 1. XYZ shall have the first right of refusal for providing working capital.2 lakh for the subsequent years. The company shall appoint XYZ as the TRA Agent for the Project. The company shall appoint XYZ Trusteeship Services Ltd. In the event of any adverse deviation of more than 10% from the levels stipulated as above and as calculated at the end of each Financial Year.5 lakh for the first year (fee for the subsequent years would be mutually decided between the company & XYZ). at a fee of Rs. at a fee of Rs.3 lakh for the first year and Rs. on the outstanding principal amount of the RTL. xx Novation/ assignment TRA Agent xxi xxii Security Trustee xxiii Lenders' Agent xxiv Other services 48 . as the Security Trustee for the Project. during the period of such default.33. at its own cost and after giving prior intimation to the company. the company shall pay penal interest @ 1% p.5 lakh for the first year (fee for the subsequent years would be mutually decided between the company & XYZ).15 calculated at the end of each FY. The company shall appoint XYZ as the Lenders' Agent for the Project at a fee of Rs. tools & accessories. including movable plant and machinery. costs. benefits. expenses and other monies whatsoever. (vi) Corporate Guarantee of Auro Mira Energy Company Private Limited (the pledged shares. to the extent of 51% of the borrower’s envisaged paid-up equity share capital. (c) all the rights. the Trust & Retention Account (TRA) [where all the cash inflows from the Project shall be deposited and all proceeds therein shall be utilized in a manner & priority to be decided by the Lender’s Agent/ Project Lenders] and any other bank account of the company wherever maintained. held by Auro Mira Energy Company Pvt. interest. revenues of whatsoever nature & wherever arising. (ii) A first charge on or assignment of. prior to the Financial Closure of the Project. (iv) First charge on all the Project’s bank accounts. title. operating cash flows. (a) all the rights. Ltd. interest. negative lien and the corporate guarantee would be released on full repayment of the Project Debt). title. present and future. of all the movables pertaining to the Project. claims and demands whatsoever of the company in the statutory/ non-statutory clearances & approvals obtained/ to be obtained for the Project. (iii) First charge on all the Project’s book debts. benefits. title. etc. machinery spares. benefits.. • The above charge shall rank pari-passu with the charges to be created in favour of the other term lenders participating in the Project. claims and demands whatsoever of the company in any letter of credit. • The company would execute the documents for creating the above security at the time of execution of the Loan Agreement. SECURITY • The Rupee Term Loan together with interest.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note B. in favour of XYZ. performance bond. • XYZ reserves the right to modify the above security structure. both present and future. interest. guarantee. in favour of XYZ. (i) 49 . including but not limited to the Debt Service Reserve Account (DSRA). liquidated damages. receivables. provided by any party for the Project and (d) all Insurance Contracts/Insurance Proceeds pertaining to the Project. intangibles & goodwill. charges. present and future. claims and demands whatsoever of the company in the Project Documents. (b) all the rights. (v) Pledge of shares of the borrowing company. shall be secured as under: A first charge by way of hypothecation. the term of which would be to the satisfaction of XYZ. in case of any cost overrun. free operations & maintenance for 2 years from the COD (including supply of all spares & consumables).290. the company shall. civil works. Pre-disbursement conditions Before seeking any disbursement of assistance sanctioned. (iii) furnish an undertaking from Auro Mira Energy Company Pvt. to the satisfaction of XYZ: (i) (ii) bring in minimum 50% of the equity contribution envisaged for the Project and deploy the same for part-financing the Project. (ii) furnish an undertaking from Auro Mira Energy Company Pvt. SPECIAL TERMS AND CONDITIONS Pre-commitment conditions The obligation of XYZ to commit the assistance for the Project shall be effective upon the company complying with the conditions given below. machine availability. of 1500 kW wind turbines. reactive power loss. without any recourse to the Project assets. the same shall be met by Auro Mira Energy Company Pvt. (iv) Furnish an undertaking from the Promoter Directors of Auro Mira Energy Company Pvt. the Turnkey Contract. transmission loss (within the windfarm). would also contain suitable warranty clauses regarding machine performance (power curve guarantee). The company shall.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note C. commissioning of 33 nos. II. Ltd. that the completion cost of the Project shall not exceed Rs. that they would not resign or withdraw from the Board of Auro Mira Energy Company Pvt.70 crore in a manner so as to facilitate smooth implementation of the Project. etc. without obtaining the prior written consent of XYZ. electrical works (including power evacuation facilities).00 crore. Ltd.189. supply/ erection. of India / IREDA In the event of the company failure to establish the same to the satisfaction of XYZ. by way of additional equity contribution /sub-ordinated debt. (i) tie-up the entire Project Debt amounting to Rs. acquisition of the site. Establish that the Project would receive the Generation Based Incentive (GBI) from Govt. I. etc.75 crore and. enter into a Turnkey Contract with Suzlon Energy Ltd. the scope of the turnkey contract would include. Ltd. to bring in the entire envisaged equity contribution of Rs. and / or its affiliate companies for execution of the Project. to the satisfaction of XYZ. Ltd. Ltd. it shall arrange for additional promoters’ contribution by way of equity 50 (iii) ..101. appoint an independent technical consultant. to the satisfaction of XYZ. Debt Service Reserve Account (DSRA) for the ensuing 6 months principal & interest payment due to the Project Lenders. provide a letter of credit/ bank guarantee acceptable to XYZ/ Project Lenders. from the cash flows available after meeting the debt service obligations during the operational phase. etc. or. if any. etc. enter into PPA with Bangalore Electricity Supply Company Ltd. which would safeguard the financial interest of the Project Lenders.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note share capital / interest-free sub-ordinated unsecured loan from the Promoter. 51 (ii) (iii) . (i) Other conditions The company shall. obtain all applicable statutory & non-statutory clearances / approvals as may be required for smooth implementation of the Project (including environmental clearances from Government of Karnataka and Ministry of Environment & Forests) and ensure that appropriate measures are taken to address the environmental concerns. (iv) (v) open a Trust & Retention Account (TRA). 2010. obtain a ‘Facilitation Letter’ from Karnataka Renewable Energy Development Limited. the sale of movable property (plant and machinery. within 30 days of the COD. opening L/C for 30 day’s sales. in lieu of such deposit. agree to appoint a Lender’s Engineer. and make satisfactory arrangements to resolve any issue raised by the LE. for an amount equivalent to the ensuing 6 months principal & interest payment to XYZ / Project lenders. The PPA would have provisions for making prompt payment. within 6 months from the COD. to the effect that in the event of the company defaulting in servicing the RTL of XYZ / Project lenders. for assessing the wind energy generation potential of the proposed wind farms and the consultant’s report on the same would be to the satisfaction of XYZ. through which all the Project cash flows would be routed undertake to establish and maintain. so as to maintain a maximum Debt Equity Ratio of 62:38 for the project. termination of PPA on BESCOM’s default. at least 1 month before December 31.) shall be permitted (without creating any encumbrance on the land) and the new party shall be then allowed to operate the project at the site on the same terms and conditions as agreed for the original allottee. (vi) (vii) III. The project debt would then reduce by an equal amount and the commitment of the respective Lender would be decreased proportionately. if so required by XYZ.. agree to comply with all provisions of Corporate Governance. XYZ shall have the right to review the cost of the project & means of finance and the company would provide all necessary information to XYZ as may be required for this purpose. covering registration of the project with CDM Executive Board of UNFCCC and also for CER sales. XYZ and/or Reserve Bank of India (RBI) will have an unqualified right to disclose the name of the company and its directors as defaulters. in such manner and through such medium as XYZ and RBI. undertake to comply with all applicable regulations and any issues on the environmental front or under the CDM mechanism and submit the data/ report to XYZ. maintain in full force all the required statutory/ non-statutory clearances for the Project. during the implementation of the Project. agree not to create any lien or charge of whatsoever nature over the Project assets. 52 . as well as the expenditure incurred on the Project. both during the construction and operations. satisfy XYZ that the physical progress. are as per the original schedule and shall provide such information / data as may be required by XYZ for this purpose. in such form and manner as may be required by XYZ. (x) (xi) (xii) (xiii) agree that in case of a default in repayment of debt or payment of interest thereon on due dates. (xiv) XYZ reserves the right to stipulate any other condition deemed necessary in case the Project implementation is delayed or if the project warrants such additional conditions for ensuring smooth completion / operations. adequately insure the assets both during the construction and operations phase. (xv) (xvi) submit copies of all consents / approvals with respect to the Project and address concerns. if any. (v) (vi) (vii) (viii) agree that. to the satisfaction of XYZ. agree that any saving in Project Cost would result in a pro-rata reduction in the debt for the project. (ix) provide regular progress reports on the Project. may deem fit. without obtaining the prior approval of XYZ. in their absolute discretion.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note (iv) agree that XYZ shall have the first right of refusal for extending Carbon Credit Consultancy Services to the company. XYZ reserves the right to disburse the loan amount directly to the turnkey contractors of the Project. comply with the environmental. Moreover or immoveable.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note (xvii) at all times during the currency of the assistance. without obtaining the prior written approval of XYZ. • Create any security interest in favour of any other person on the project assets. 3. present or future. 2. The company shall not. fixed or current. safety and social requirements with provisions of all applicable legislations and clearances issued thereunder. 53 . health. • Make any modification to any of the Project Documents. most of whom are professionals having relevant background. envisaged on the project implementation front. The promoter Directors.1 Summary of Assessments Auro Mira Group was promoted by professionally-qualified. BPEP is considered to be a pioneer in the private equity space in India.7/ MW. No difficulty is. The capital cost of the wind farm has been estimated at Rs. from land identification / acquisition to commissioning of the machines and connecting them to the state grid. A predisbursement condition has been stipulated that an independent technical agency shall evaluate the data and estimate the wind energy generation potential of these sites.3 Wind farms at the proposed sites have high wind potential. of these WTGs are in operations today in India. which is reasonable. 5. It has installed windfarms of around 4500 MW capacity in India. first generation entrepreneurs for developing green energy projects in biomass.4 Suzlon Energy Ltd. Its nominees are on the Board of the holding company. the loan disbursements shall commence after receipt of satisfactory report from the independent agency. 7. (SEL) is the largest Indian manufacturer of Wind Turbine Generators and the fifth largest in the world. have built a team of more than 100 members. The Group has been in business for around 4 years.2 Baring Private Equity Partners (BPEP) has taken a majority stake in Auro Mira Energy Company. 7.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note PART VII . The area has been declared by MNRE as windy area and the sites have been identified by SEL after monitoring the wind characteristics over an extended period.RECOMMENDATIONS A. the main holding company of the group. A pre-disbursement condition has been 54 . SEL and its group companies would be executing the project on a turnkey basis. therefore. small hydel and wind energy sector. 7. 7. who had prior experience in the wind power sector. S-82 is a well-established model and about 1000 nos. which may be considered acceptable for infrastructure projects.3.e. BPEP has almost 1 billion USD of assets under its management. The power evacuation arrangements (upto SEB substation) will also be made by SEL. not project specific) and would apply for a period of 10 years from COD. In India.32% and the average DSCR for the company works out to 1. Electricity Regulatory Commission in the State has determined Rs.e.50 per unit by way of Generation Based Incentive (GBI).40. no delay is envisaged in timely infusion of the promoters' contribution. a leading private equity player. Baring Private Equity Partners (BPEP). This is a general tariff (i.8 The DER would be 65:35. the company would be eligible for another Re 0.6 The wind power to be generated by the proposed wind farm would be sold to the State Discom under a long-term PPA.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note stipulated that the company would enter into a turnkey contract with SEL and the terms of the contract would be satisfactory to XYZ. 7. The promoter's contribution would come in the form of equity infusion by AME. 7. before the loan disbursement commences. the construction and operational risks have been mitigated effectively. SEL would carry out the O&M of the windfarms and furnish its warranty for machine performance as well as machine availability.9 Project IRR (post-tax) is 12. 55 . as a part of the turnkey contract. The sale proceeds would be routed through a TRA Account. the holding company of the Project SPV. The sale of power would also be secured against a L/C for one month billing. holds 90% stake in AME. 7. Considering the scale of BPEP’s operations. 7.40/unit as the price for procurement of wind power by the distribution licensees. A condition has been stipulated that minimum 50% of the equity capital would be raised upfront i.7 The PPA would contain provisions like Termination Right in the event of default by the power purchasers.5 During the first two years. With the involvement of SEL in all aspects of the project. 7. Besides. which are satisfactory. RBI Defaulters list/ CIBIL list / Litigations pending/ Directors’ Interest 7. There are no litigations pending against the borrower.10 Risk Department has assigned rating of ‘___’ to the Project (score of __).12 As on March 31.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note 7. either directly or through their relatives.75 crore to Auro Mira Wind Shakthi Ltd. subject to the special terms & conditions set out in Part-VI of this Memorandum. is interested in the proposal. B. 2008. 7. 7. C. Recommendation Rupee Term Loan of Rs. the names of the company/Directors did not appear either in RBI’s list or in CIBIL’s list of defaulter / wilfull defaulter companies.11 The proposal complies with the internal exposure norms and RBI's prudential limits. besides the normal terms & conditions applicable to the grant of such assistance by XYZ.5 MW. Credit Committee is requested to sanction 56 . The company’s name does not appear in RBI’s last Caution Advice also. other than those in the normal course of business. 7.14 In view of the foregoing.. None of the directors of other banking companies or their relatives are also interested in the proposal. for setting up wind power projects of an aggregate capacity of 49.13 None of the Directors of XYZ Bank Ltd. 00 0.11 0.00 0.11 1.00 18.00 0.18 0.00 62 0.56 0.31 0.05 0. Current assets Cash and Bank Balances Investments (Other than Long Term) (i) Govt.68 -0. & other securities Other Current Assets: (i) Deposits (EB/Excise.00 0.81 0.06 0.02 0.00 0.21 13.13 0.05 0.00 0.84 2007 Audited 0.00 2009 Audited 4.etc.71 0.81 0.68 10.00 34 0. crore) As on March 31.00 0.02 0.11 1.76 Total current liabilites (I+II) (III) 0.00 0.07 0.24 22.crore) (Rs.00 .00 4.36 42.crore) (Rs.09 46.00 Sub total (II) 0.00 43 44. 2007 2008 2009 Audited Audited Audited Liabilities Current Liabilites Sundry Creditors (Trade) 0.50 Provisions 0.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note Annexure-I Auro Mira Energy Company Private Limited Balance Sheet Analysis (Rs.00 0.00 0.00 23 22.76 0.70 0.76 Term Liabilites Deferred Tax Liability Total Term Liabilites (IV) Ordinary share capital Reserves & Surplus Surplus(+) or deficit (-) in P & L Account Net worth (V) Total Liabilities (III+IV+V) ASSETS: As on March 31.35 0.41 0.74 14.00 0.02 0.00 0.60 74.58 0.) (ii) Duties & Taxes paid in Advance (iii) Others (iv) Loans and Advnces (iv) Interest Accrued on Invest & Deposits Total current assets Fixed Assets (Net) (I) Land (ii) Building 57 0.08 1.00 18 0.29 0.07 Other Current Liabilities 0.00 0.00 2008 Audited 0.21 75 75.18 0. 01 0.10 0.20 0.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note (iii) Plant & Machinery (iv) Furnitures & Fixtures (v) Other Fixed Assets Net block Gross fixed assets Other non current assets (i) Investments in Subsidiary companies/ Affiliates (iv) Deferred receivables(maturity > 1 year) Total Other non current assets Intangible Assets (patents.77 10.89 0.00 0.89 0.22 0. prelim.30 10.00 0.08 0.01 0.00 4.00 44.00 75. expenses.00 0.00 0. bad/doubtfull expenses not provided for) Total assets 0.68 2.61 0.00 22.00 4.17 1.22 0.11 0. goodwill.10 0.00 0.01 0.83 58 .00 1.35 12.31 0.00 12.09 0. Transmission Loss SEL would give warranty that the loss of power during transmission between the WTG meter(s) and the SEB/SEB authorized meter(s) located within the Wind Farm shall not be more than 5% per annum for all the WTGs put 59 . (ii) supply. Scope SEL’s scope of work would cover procurement of land. and (iv) establishing the necessary common infrastructure facilities. Salient features of the turnkey contract proposed to be executed by the company with Suzlon Energy Ltd. (v) insurance upto the commissioning date. developing necessary infrastructure. erection. for all the WTGs in the wind farm. of good quality and free of defects in design. subject to a maximum of 10% of the annual maintenance charges. Equipment Warranty SEL would give warranty that all equipment shall be new.15 crores to SEL towards (i) cost of land & civil works. Machine Availability SEL would give a machine availability warranty of minimum 95% p. Contract Price Auro Mira would pay Rs.. Power curve The turnkey contract would also include a power curve warranty.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note Annexure – II Auto Mira Energy Sakthi Ltd. This price is inclusive of all taxes & duties. 282. Any repair/ replacement during the defect liability period would be carried out free of cost. In case the average machine availability falls below 95%. then SEL would compensate the company @ 2% of the annual maintenance charges for every 1% shortfall (below 95% average machine availability). Wind Turbine Generators (WTGs) and commissioning the wind farm. except for service tax. installation. commissioning of WTG.a. on half yearly basis. so that the project is implemented as per the schedule agreed upon. (including the arrangements for power evacuation) engineering/ manufacturing/ supply/ installation of 33 nos. (iii) setting up the internal grid for evacuation of power to the nearest sub-station (iv) free O&M (with spares & consumables) for the first two years. the exact details of which are being worked out. materials & workmanship. during each year after stabilization period of 90 days from COD. pay liquidated damages to the company at the rate of 0. In the event of such transmission loss exceeding 5% (for all the WTG s put together) in any year. Statutory obligations relating to manpower SEL shall make its own arrangement for labor and for their transport. subject to a maximum of 10% of annual maintenance charges. 60 . It would be the part of common infrastructure of the wind farm and will be shared by the company along with any other investor (WTG owner) at the wind farm sites located in Modurgudda & Gopalpura. Central Monitoring System The CMS being developed by SEL at the project site would be the property of SEL. housing and payment. or any other liability arising out of or in connection with the contract. All labor engaged by SEL shall be the employees of SEL. shall not exceed 2. as sole remedy.5% of the contract value per week of delay. Compliance with safety and health rules SEL shall comply with all the applicable Government Rules relating to the health and safety. However the maximum aggregate liability for liquidated damages for delay and defects payable under any warranty. Evacuation facility Evacuation infrastructure including installation of the sub-station and laying the internal cable/ conductors at the site shall also be a part of the common infrastructure of the wind farm. SEL shall. SEL shall compensate the Company for such loss @ 2% of the annual maintenance charges for every 1% of excess transmission loss over 5%.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note together. Compensation due to delay in Commissioning of Project If SEL fails to attain completion of the works or any part thereof within the time of completion specified or within such extended time entitled as per provisions.5% of the contract value. The company shall pay to KPTCL Rs. 8. 61 . 6.40 per kWh.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note Annexure – III Auro Mire Wind Sakthi Pvt. BESCOM would provide start up power required for the plant. BESCOM shall make payment of the billed amount within 15 days form the date of receipt of tariff invoice. In case BESCOM is unwilling to purchase the power at the price determined by the KERC. BESCOM would pay for the delivered energy. The Financial Closure for the Project shall have occurred and the company shall have received all permits. Salient features of the draft of the PPA to be entered into with BESCOM 1. for this purpose.000/. as and when necessary & requested for.3.per MW of the installed capacity as a one time lump sum payment for the sole purpose of providing required capacity at the substation of the BESCOM. 3. From the 11th year. 5. (KPTCL). clearances & approvals for the Project before the PPA becomes effective. The company shall undertake. it shall pay interest on the outstanding amount at the rate of SBI medium term lending rate per annum. the company shall be permitted to sell the power to the third parties and. for the first 10 years from the COD. Ltd. maintenance of the interconnection facilities and the receiving stations. at its own cost. including the dedicated transmission line beyond the receiving station. 2. @ Rs. 4. BESCOM would off take all the electricity generated by the company at the delivery point at decided tariff rate.37. from the due of date such payment until the payment is made. enter into a wheeling agreement with KPTCL and pay transmission charges at the applicable rate from time to time. as per the specifications and requirements of Karnataka Power Transmission Corporation Ltd. 7. In the event of delay of payment by BESCOM. BESCOM would pay at the rate determined by the Karnataka Electricity Regulatory Commission (KERC). On the occurrence of the event of default by the company.e. BESCOM may after the period of 90 days from the date of notice period may terminate the agreement. 15. On the occurrence of the event of default by BESCOM. and the same shall be maintained consistently during the term of the PPA. Neither party is liable for or deemed in breach of any delay in the performance of its obligation hereunder beyond the reasonable control of the party i. at least 30 days prior to COD of the project. O&M default or failure or refusal to perform any of the material obligations under the agreement by the company would amount to the event of default by the company. may terminate the agreement by delivery of termination notice. BESCOM shall open non-revolving Letter of Credit in favor of the company.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note 9. The L/C amount shall be equal to one month’s projected payment based on the average annual generation. 14. however no judicial intervention or appeal would be permissible. The agreement shall be in force for period of 20 years from the COD and may be renewed for a further period of 10 years under mutually agreed terms. company may after the period of 30 days from the delivery of the default notice. 12. Failure or refusal to perform its financial and other material obligation under the agreement would constitute event of default by BESCOM. 10. The dispute first need to be compulsorily resolved by mutual negotiation within 90 days. ********************** 62 . under the Force Major Event. else it may be referred to the KERC. 11. 16. 13. The WTGs are scheduled to commence commercial operation form to 27% March 31st 2010.65 lakh kWh (equivalent PLF) 3. Ltd.5 MW power generation 1171.40/-. Interest on term loan has been assumed @ 12% p.and the total income from CER would amount to Rs. 3. it has been assumed @ 1.a. Insurance premium has been assumed @ 0. Assumptions underlying the profitability estimates 1.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note Annexure – IV Auro Mire Wind Shakti Pvt. The installed capacity and annual power generation per WTG have been assumed as below. besides. 6. The CER per unit amounts to Rs. Operation and Maintenance expenses would be free for the first two years from COD.per unit. Total number of WTG: 33 nos. 42. As per the turnkey contract. each of 1500 kW rating 2.33% 63 .61 crore.75% of the total turnkey project cost and 5% annual escalation has been provided thereon.a.15% of the turnkey project cost i. 4. Income from the carbon credits (CER Sales) has been assumed @ Euro 11/ CER.28%. 9. p. 0.50/. MAT has been assumed @ 11.. 6. 5.30 lakh. Depreciation on SLM basis has been assumed @ 5.e. 8.0. the company would earn Generation Based Incentive of Rs. Location of the wind Installed capacity of Annual farm Hassan District Karnataka the windfarm .56/.49. The tariff of the generated power is assumed as Rs. Thereafter. 7. 10. 84 6.34 8.Annexure.72 8.42 7.11 6.14 2013 39. Crore) 2019 2020 39.44 4.07 2.44 6.36 14.44 6.02 9.69 2.61 46.61 46.30 0.87 40.02 20.42 0.84 6.44 46.90 1.90 1.V Auro Mira Wind Sakthi Ltd.44 0.04 0.44 0.95 23.44 6.45 19.55 14.42 6.72 30.94 0.14 40.44 5.35 2016 39.61 46.90 17.02 22.42 46.42 0.08 18.69 14.62 0.62 2.90 1.84 16.72 7.09 14.98 28.62 .18 7.53 24.12 2017 39.61 46.42 5.90 15.42 5.72 6.51 2012 39.16 21.90 1.84 6.37 39.61 40. Projected Profitibility Statement (Rs.71 1.73 2.89 22.07 Year ended on March 31.54 14.56 12.62 14.40 4.79 13.35 6.57 2015 39.95 0.07 1.44 5.84 6.61 46.04 39.84 39.42 6.89 14.61 46.84 6.06 1.72 0.42 46.97 5.22 27.23 17.77 1.01 15.84 6.90 1.84 6.42 5.88 2018 39.61 6.46 32.73 25.42 6.72 8. Sale of Wind Energy Carbon Credit .00 0.73 39.58 13.44 0.90 19.42 40.42 7.84 6.78 2014 39.17 34.61 46.78 1.72 6.36 41.61 46.82 14.88 5.30 11.90 13.90 21.44 5.16 14.Income Generation Based Incentive Total Income Operations & Maintenance expenses Insurance charges Total cost of operation Gross profit (PBIDT) Interest Depreciation Misc expenses written off PBT Tax PAT Gross cash accruals 2011 39.43 14.86 0.61 46.18 0.84 6.72 10. 61 39.90 34.42 18.99 290.90 32.61 39.72 6.77 4.30 7.45 25.54 0.06 20.20 5.76 282.62 4.44 46.84 6.84 6.99 6.90 43.42 18.18 4. Projected Cashflow Statement (Rs.89 1.18 16.62 1.44 13.44 46.42 9. Inflow Sale of wind energy Carbon Credit Sale Generation Based Incentive Equity capital (from promoters) Project loans Total cash inflow (A) Outflow Capital expenditure (project) Misc expenses to be written off O & M expenses Interest on project loans Tax Insurance charges Repayment of project loan Total cash outflow (B) Net cash inflow Opening Balance Net surplus / deficit 290.72 50.68 15.30 8.61 39.84 6.17 75.36 1.76 46.79 0.88 18.42 18.67 21.84 6.31 2.98 40.22 8.67 5.45 6.42 18.45 33.82 2.44 46.27 15.44 46.88 0.18 0.06 13.38 13.01 0.22 13.44 46.69 1.15 8.61 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 65 .84 6.17 101.43 0.84 6.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note Annexure.44 46.52 9.34 0.16 1.23 0.56 0.42 18.84 6.11 0.99 13.61 39.88 5. Crore) For the year ended on March 31.44 39.42 18.42 18.85 6.90 38.84 6.44 46.22 6.84 6.06 5.90 39.55 2.61 39.42 18.42 18.09 2.98 6.90 36.50 11.61 39.00 9.61 39.47 9.VI Auro Mira Wind Sakthi Ltd.90 41.45 5.24 4.72 11.45 0.61 22.97 0.44 46.90 41.61 39.84 6.72 11.24 13.57 2.22 32.44 46.90 31.95 2.94 18.61 39.76 188.45 62. 27 50.57 90.18 1.13 21.50 1.13 32.31 18.22 1.85 1.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note Closing Balance DSCR Average DSCR 13.31 1.52 1.85 1.68 1.30 1.08 25.71 66 .45 75.35 62.20 40.41 1.06 1. 76 25.25 28.15 282.76 101.58 120.68 1.17 90.06 18.76 101.00 0.18 162.20 275.04 0.85 0.66 192.00 13.61 6.85 32.66 179.45 282.20 2012 101.49 1.VII Auro Mira Wind Sakthi Ltd.20 62.05 66.50 0.15 282.03 0.15 119.30 9.00 224.76 114.34 141.76 0.74 149.97 62.15 267.15 104.81 2.39 1.22 0.53 127. Crore) 2019 2020 101.80 44.45 225.46 222.37 0.53 216.Auro Mira Wind Sakthi Limited – Detailed Appraisal Note Annexure.39 282.15 282.76 188.72 0.22 282.69 59.31 21.67 1. Liabilities Equity share capital Reserve & Surplus Networth Loans (Project loans) Total Liabilities (A) Assets Gross fixed assets Less: Depreciation Net fixed assets (B1) Cash & bank balance (B2) Misc.68 0.09 226.00 101.90 29.00 290.56 207.49 1.15 0.16 3.99 290.47 282.94 179.92 225.86 1.57 1.75 282.00 228.76 0.30 40.76 13.89 107.96 163.82 2013 101.15 282.90 95.00 As on March 31.87 50.69 235.08 148.15 134.67 197.75 0.57 1.18 77.13 2015 2016 2017 2018 101.64 275.15 148.18 160.15 282.59 74.29 1.98 133.19 0.75 0.08 250.14 5.76 35.49 89.27 67 .76 287.76 5.08 2014 101.54 287.13 239.25 252.01 230.82 262.00 2. Projected Balance Sheets (Rs. exp to be written off (B3) Total Assets(B1+B2+B3) DER (Project loan/ Networth) FACR 2011 101.28 177.74 262.76 101.15 282.97 233.00 225.52 8.18 25.18 0.76 101.42 115.97 0.84 250.12 103.88 5.95 85.07 75.40 2.44 1.00 223.29 122.98 48.00 14.69 282.76 101.15 47.36 137.76 18.35 241.35 237.26 3.