Financing and Appraisal of a Power Project

Project Appraisal and Financing Project Report on INDIABULLS REALTECH LIMITED (IRL) 5x270 MW Thermal Power Project at District Nasik,

Maharashtra

By

Shafaquat Husain (11FN-093)Shaurya Vikram Singh (11FN-096)

Shubhendu Gaur (11FN-102) (PAF-Section B)

TABLE OF CONTENTSPage

I Introduction: Project Company 1

1.1 Company Profile 11.2 Company Background 11.3 Capital Structure and Share Holding Pattern 2

II Project Details 3

2.1 Project Scope 32.2 Location 42.3 Land Requirement 5

2.4 Implementation Schedule 5

III Project Cost and Financing 7

3.1 Project Cost 73.2 Means of finance 8

IV Key Financial Indicators 9

4.1 Debt to Service Coverage Ratio 94.2 Indicators 94.3 Sensitivity 94.4 Covenant Analysis 10

V Risks and Mitigation 11

VI Conclusion 14

ANNEXURE I

1. Project Company (SPV)

1.1 Profile of the company

Name Indiabulls Realtech LimitedIndustry Power GenerationCorporate Office "Indiabulls House", 445-448, Udyog Vihar, Phase - V,

Gurgaon - 122 001Registered Office E-29, 1st Floor, Connaught Place, New Delhi -110001Location of the Project Sinnar , Nasik district, MaharashtraDate of Incorporation January 03, 2007Constitution Public Limited company

1.2 Company Background

Indiabulls Realtech Limited (IRL) is a SPV promoted by Indiabulls Power Limited (IPL) to develop, design, construct, finance, commission, operate and maintain a power plant with capacity of 1350 MW (5x270) at Nasik district, Maharashtra. The project is being developed as part of the multi-product SEZ, being developed by Indiabulls Industrial Infrastructure Limited (IIIL), a joint venture of Maharashtra Industrial Development Corporation (MIDC) and Indiabulls Real Estate (IBREL). The plant is located inside the said 2500-acre multi product SEZ.

The company’s shareholding arrangement in the Indiabulls’ group is explained under:

IPL (formerly known as Sophia Power Company Limited) is a subsidiary of IBREL. The company was incorporated in October 2007 for development of power projects of the group. IPL is currently developing 1350 MW coal based power plant at Amravati district, Maharashtra. In addition to this, IPL has promoted two separate wholly owned SPV’s for the purpose of executing power project in Nasik (Maharashtra) and Bhaiyathan (Chhattisgarh).

1.3 Capital Structure and Shareholding Pattern

The capital structure of IRL as on December 10, 2009 is as follows:

100%

100%

INDIABULLS CSEB BHAIYATHAN POWER LTD

(ICBPL)1320 MW Coal Based Power

Project at Bhaiyathan, Chhattisgarh

INDIABULLS REALTECH LTD1350 MW Coal Based Power

Project at Nasik, Maharashtra

LN MITTAL: 8.80 %Farallon Capital: 14.67 %Others: 17.86 %

INDIABULLS POWER LIMITED.. (FORMERLY

KNOWN AS SOPHIA POWER CO. LTD)

(Implementing Amravati TPP(Phase – I, 1350 MW)

INDIABULLS REAL ESTATE LIMITED

58.67%%

Number of Shares

Rs. Crores

Authorized capitalEquity share capital 20,000,000 20.00Issued, Subscribed and Paid upEquity share capital 1,049,500 1.05Share Premium 98.95

The shareholding pattern of IRL is as follows

Category Number of shares % HoldingIndiabulls Power Limited. 10,49,500 100%Total 10,49,500 100%

2. Project Details

1.4 Project Scope

The salient features of the project and their significance for the success of the project are detailed in the subsequent section. Brief of the same is tabulated under:

Project Name Indiabulls Realtech LtdPlant Rated Capacity

5 units each of 270 MW. Total capacity 1350 MW

Location Sinnar village in Nasik district of Maharashtra

Distance from nearest railway station , Niphad Station - 30 km

Distance from nearest airport: Mumbai- 230 km Distance from nearest seaport: Mumbai- 230 km Distance from SECL mines- 825 km Distance from WCL mines - 430 km Distance from MCL mines- 1025 km

Land for the Project

Entire land of 900 acres has been allotted by the developer of SEZ i.e. Indiabulls Industrial Infrastructure Limited

Source of water Dedicated water supply from the outlet of the sewage treatment plant of Nasik Municpal Corpration (NMC)

Technology Subcritical technologyPrimary Fuel CoalCoal Linkage LOA’s received from MCL, WCL and SECL for 5.23 MTPA of coal

. The balance 0.71 MTPA is proposed to be procured from the open market.

Power Off take The company has submitted a bid under Case-1 bidding for MSEDCL for supply of 950 MW net power under long term arrangement.

Power Evacuation 400 kV Nasik substation and 400KV Babhaleswar Substation of Maharasatra State Electricity Transmission Corporation Limited ( MSETCL).

Notice to Proceed November 2009Target for COD 34 months from NTP-Unit 1

35 months from NTP-Unit 237 months from NTP-Unit 339 months from NTP-Unit 441 months from NTP-Unit 5

1.5 Location of the project

The site has been selected in view of the availability of habitation free and even land. The water intake point is the outlet of the sewage treatment plant of Nasik Municipal Corporation, which is at a distance of 30 km from the project site. The project site lies on Nasik-Bhuswal rail section and well connected to coal fields in the command area of SECL which are located about 825 km distance away. The site is also well connected to the

Location: Sinnar, Nasik District, Maharashtra

Nasik, Maharashtra

coal blocks of MCL through Jharsuguda- Champa – Bilaspur – Wardha - Niphad railway route of Eastern Coast, Central and South Eastern Central Railways. Similarly WCL mines are connected via Bhalarshah – Chandrapur – Wardha – Niphad lines of Central Railways. For transmission of generated power , the power plant can be connected to MSETCL’S 400kV substation at Babhaleswar , 80 km from the plant and 400 KV substation at Nasik , which is 22 KM from the plant.

1.6 Land requirement

The land requirement can broadly be classified as Plant area, Ash Disposal area & other facilities such as water reservoir, township, administration office, roads, etc. etc. The total land requirement for the project is estimated at 900 acres. The approximate break-up of land requirements estimated for the project is given below:

- Plant AreaAn area of about 228 acres will be required for installation of the project equipment. The land area considered includes space for cooling towers, railway sidings, coal handling system with about 30 days coal stockpile, fuel oil unloading and storage facility, 400 kV switchyard, mandatory space provision for future flue gas de-sulphurisation (FGD) plant, etc.

- Ash Disposal AreaAn area of 210 acres shall be required for the Ash Pond for disposing Bottom ash and Fly ash in ash pond in the form of high concentration slurry. As per the notification of Ministry of Environment & Forest (MOEF) dated 19th July 1999, the fly ash utilization has to be 100% from 10th year of commissioning of the project. The area is adequate to store about 25 year’s ash generation considering 100% of bottom ash & unutilised fly ash.

- Other AreaOther area includes 270 acres for green belt, township (42 acres) and other facilties (150 acres) etc.

1.7 Implementation Schedule

The construction start date for the 1350 (5 x 270) MW power project is reckoned from the effective date of award of the BTG contract for the project i.e. 24th Nov 2009. Unit I is estimated to be commissioned within a time period of 34 months , unit II in 35 months, unit III in 37 months, unit IV in 39 months and unit V in 41 months from Notice to Proceed.

Implementation schedule is as follows:

Milestone / Activity TimelineFinalization of Detailed Project Report (DPR) AchievedAward of Coal Linkage AchievedCompletion of Land Acquisition AchievedEnvironment Clearance by MoEF, GoI Mar, 2010Finalization of Power Sale Arrangements Feb , 2010Financial Closure Feb, 2010Issue of Notice to Proceed (NTP) Achieved. BTG contract awarded and

other packages to be awarded by Jun 2010.

Finalization of Project construction contracts Jun, 2010Commencement of Unit I Oct, 2012Commencement of Unit II Nov, 2012Commencement of Unit III Jan, 2013Commencement of Unit IV Mar, 2013Commercial Operations Date May, 2013

Implementation StrategyProject implementation is proposed to be undertaken through Engineering Procurement Construction Contract (EPC) for the Main Plant. The EPC contract for supply of Boiler , Turbine and Generator (BTG) has been awarded to Bharat Heavy Electricals Limited (BHEL) on 24 November, 2009. IRL proposes to appoint Project Management Consultant for technical monitoring of the project implementation. IRL has already received a Letter of Support from Govt. of Maharashtra on November 3, 2008 for providing administrative support for development of the Project.

3. Project Cost and Financing

1.8 Project Cost

The proposed project is envisaged to be commissioned at an estimated cost of around Rs. 6,789 crores. The cost estimates are based on Detailed Project Report (DPR) prepared by Evonik. The project cost works out to Rs. 5.03 crore/MW.

Components of project cost

The components of project cost are presented hereunder

Components of Project Cost Rs. Crores

Land & Site 55BTG 2,889Balance of Plant 1,107Civil and other works 1,024Cost of Transmission System 195Railway Infrastructure 144Township 60Raw water Piping 196Total Cost of Works 5,670Preliminary Pre-Operative and other expenses 325Contingency Provisions 112Margin Money for working capital 87Interest During Construction 595Total Project Cost 6,789

Land & Site Development:The cost under this head represent the cost of 900 acres of land at approximately Rs. 6.11 lakh/acre and other site development costs.

BTG:The company issued a Letter of Award for supply, erection and commissioning of BTG main plant to Bharat Heavy Electricals Limited (BHEL) on November 24, 2009. The detailed agreement with BHEL is in final stage of discussion and is expected to be signed shortly. The above cost is as per the LOA issued to BHEL. The company has already paid Rs. 221.13 crores as advance money to BHEL to commence construction work.

BOP: The cost of Balance of Plant (electrical works including Switchyard, Control & Instrumentation, DG Sets etc and mechanical works) has been estimated at Rs. 1,107 crores by the DPR consultant. The major costs shall be towards Water treatment system, cooling system and ash handling facility etc.

Civil and other works: The cost of Civil works would comprise of construction of Plant Building, Cooling water Pumphouse & Forebay, Cooling Tower, Raw water Reservoir, Storage tanks and clarified water Pumphouse system, chimney and civil works required for Ash handling and coal handling system along with other infrastructure such as housing colony, roads, boundary wall, paving etc. The cost of civil works is estimated at Rs. 1,024 crores by the DPR consultant.

Railway Infrastructure, Township and Raw Water Piping:Railway Infrastructure cost has been taken as Rs. 144 crores, while the cost for development of township and pipeline has been assumed as lump sum Rs 60 crores and Rs. 196 crores

Transmission lines:

The cost under this head includes the Rs.195 crore towards the power transmission line to the substations of MSEDCL. The company shall be laying approx. 100 km of transmission lines for connecting to the nearest substations of MSETCL.

Contingency:Adequate contingency provision of Rs. 112 crores has been made which is 2.0% of the total EPC cost of the project.

Preliminary & Pre-Operative, Establishment and other expenses:The cost under this head includes cost towards preliminary works & investigation studies, establishment charges, design, engineering, construction supervision, financing charges, fees and, consultancy charges, training expenses and cost of issuing of BGs to various coal-mining companies for issuance of LoA etc.

Margin Money:The Margin on Working Capital is estimated @ 25% of the working capital requirement for the first full year of operation and the same has been included as a part of the project cost.

Interest during Construction (IDC):IDC for the project has been provided @11.0% based on the capital phasing & the implementation schedule of the loan. Details of the project cost is placed as Annexure VII.

1.9 Means of Finance

The total project cost is proposed to be financed by a debt-equity mix of 75:25. The proposed means of financing is as follows

Means of Finance Rs. CroresDebt 5,092Equity 1,697Total 6,789

IPL is currently implementing 3 coal based power projects with a total capacity of 4,020 MW. The following projects, with total envisaged equity requirement for these projects is as under:

Particulars Rs. CroresAmravati (1350 MW) 1,722.00Nasik (1350 MW) – Proposed project 1,697.00Bhaiyathan (1320 MW) 1,699.00Total 5,118.00

4. Key Financial Indicators

1.10Debt Service Coverage

The debt service capability of the project is as follows

(Rs. Crores)For year ending

2014 2015 2016 2017 2018 2019 2020202

1202

22023

2024

PAT 410 430 445 459 473 486 499 511 522 533 403Depreciation 320 325 325 325 325 325 325 325 325 325 244Interest 577 534 478 423 368 313 258 202 147 92 45Total (A) 1,30

71,28

91,24

91,20

71,16

61,12

41,08

11,03

8995 951 692

Repayment 255 509 509 509 509 509 509 509 509 509 255Interest 577 534 478 423 368 313 258 202 147 92 45Total (B) 832 1,04

3988 932 877 822 767 712 657 602 299

DSCR (A/B) 1.57 1.24 1.26 1.29 1.33 1.37 1.41 1.46 1.52

1.58

2.31

Avg. DSCR 1.43

Min. DSCR 1.24

1.11 Indicators

Financial Indicator Estimated ValueMinimum DSCR 1.24Average DSCR 1.43Project IRR 14.11 %Levellised Tariff (25 years) Rs./unit 3.35The various financial indicators compares favorably for the project.

1.12Sensitivity

The critical factors affecting the profitability projections are (i) sales levels, (ii) interest rate and (iii) growth rate and (iv) operating expenses. Accordingly, sensitivity analysis has been carried out on some of the critical factors affecting the profitability projections. The factors are as follows:

(i) Decrease in PLF from 85% to 80%(ii) Escalation in YOY fuel cost from 6% to 7%. (iii) Decrease in merchant tariff by 5%.

Particulars Project IRR Min DSCR

Average DSCR

Base Case 14.11% 1.24 1.43Decrease in PLF by 5% 13.98% 1.22 1.42Increase in Fuel cost 13.73% 1.23 1.41Decrease in Merchant Tariff by 5% 13.59% 1.21 1.39

From the above, it is observed that the DSCR remains comfortable and the project cash flows are at satisfactory levels to service the debt under various adverse scenarios.

1.13Covenant Analysis

The following covenants have to be met by the company during the currency of term debt.

DSCR of at least 1.20. TTL/TNWs ratio shall not exceed 3.00 FACR of at least 1.20

For year ending Mar 31st

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

DSCR covenant 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20DSCR estimated 1.57 1.24 1.26 1.29 1.33 1.37 1.41 1.46 1.52 1.58 2.31TTL/TNW ratio covenant

3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00

TTL/TNW estimated 2.20 1.65 1.24 0.94 0.70 0.51 0.36 0.23 0.13 0.04 0.00FACR covenant - 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20FACR estimated - 1.21 1.28 1.36 1.47 1.62 1.83 2.15 2.71 3.95 5.08

5. Risks and Mitigation

An analysis of major risks associated with the project, their sharing and mitigation / implications, is presented below.

Risk Risk MitigationPROJECT DEVELOPMENT PHASESponsors Risk Indiabulls Group is a reputed group with strong presence in

the real-estate and financial services segment in India. As on 30 September, 2009,the net worth of the Group was recorded at Rs 14,336 crores (since increased to Rs. 15,960 crores after IPO of IPL in October 2009). The group has sound project development & management experience. The group comprises of a number of companies who have attained leadership positions in their respective businesses.

Obtaining Approvals/Clearance

IRL has made substantial progress towards obtaining various statutory/non statutory approvals/clearances. The Terms of Reference for environmental clearance has also been approved and Rapid EIA study has been submitted. The company expects to receive the final approval from MOEF shortly. The company has received the approval and sanction from the state body for the entire water requirement for the project. The project has also received clearance for chimney height, defence establishment and Open access from MSETCL. Further, a suitable pre-disbursement condition has been stipulated that IRL shall be obtaining all relevant and applicable statutory/non-statutory clearances/approvals required for the project.

Funding Risk IRL is a 100% subsidiary of IPL.As on 30 September, 2009, IPL has a consolidated networth of Rs. 2,344.48 crores. During October 2009, IPL raised approximately Rs. 1,624 crores (incuding exercise of green shoe option) through its IPO, part of which has been utilized towards capital exependiture on Amravati, Bhaiyathan and Nasik projects . Further Indiabulls Group is a resourceful group and hence no problem is envisaged in bringing promoter’s contribution. Further, a sponsors undertaking has been stipulated such that the sponsors shall infuse 35% equity contribution upfront prior to seeking first disbursement and balance equity contribution in pro-rata as per the debt equity ratio.

PROJECT CONSTRUCTION PHASELand Availability The land requirement for the project is estimated at 900

acres. Entire land is in possession of the company and is free from any encroachment and R&R issues.

Project Cost Overrun The project is proposed to be executed on fixed price/time contract, which will include BTG, BOP, and majority of plant civil components except for smaller contracts for railway line, water pipeline, transmission system and township which the company proposes to implement through other contractors. Any increase in cost shall be the responsibility of the contractors. Nonetheless, a contingency provision of

Risk Risk Mitigationaround Rs. 112 crores has been considered in the project cost. A suitable condition has been stipulated that any cost overrun/shortfall in the resources shall be met by the promoters.

Time Overrun The company proposes to implement the project via various works contract on a fixed price fixed time basis. The company has already awarded the contract for BTG to BHEL. The contract for BOP and civil works are expected to be awarded shortly.

The contracts shall have clauses for Penalties/Liquidated damages in case of a delay in project completion. Further suitable insurance will be taken by the company to cover for delays in project implementation.

PROJECT OPERATION PHASEFuel Availability & Logistics

The coal requirement for the project is proposed to be met mainly through long term coal linkages from SECL, WCL and MCL for 5.23 MTPA and balance 0.71 MTPA is proposed to be procured through market purchases

The coal mines of SECL, WCL & MCL are well connected to the site and IRL needs to lay only a railway line of 30 km connecting the plant site to nearest railway station. The secondary fuel shall be sourced from nearby oil depots. In view of the above, no problem is envisaged in respect of fuel availability and transportation.

Increase in Fuel Price As per the recent CERC notification for tariff dated September 30 2009, annual escalation rates for the domestic coal prices has been considered at 6.12%. For the purpose of estimates/ projections, the price of coal is assumed to increase by 6.12%. The DSCR for the project term loan is within comfortable limits in the above mentioned adverse scenario.

Plant Performance Risk The EPC contract to provide for appropriate liquidated damages during the warranty period as also defect liability period.

Operation & Maintenance Risk

The O&M of the plant to be carried out by both reputed O&M contractor and experienced in-house team. In view of the above no problem is envisaged regarding O&M.

Off take Risk IRL proposes to sell over 75% power on Long Term basis and the balance power is proposed to be sold on Merchant basis. The Levelized tariff as per CERC norms works out to Rs. 3.35/kWh for a period of 25 years which can be considered competitive. There is a huge demand supply mismatch in power sector with average energy deficit of 9.3% and peak deficit of 13.9%. In view of the above no off take risk is envisaged. Suitable covenants in the proposed terms have also been stipulated in this regard.

Power Evacuation Risk IRL shall be laying a transmission line of approx 100 km length from the plant site till sub station of MSETCL.The company has secured open access approval from MSETCL.

Risk Risk Mitigation

Force Majeure Risk IRL to take an appropriate insurance to cover both material damage and loss of profit.

6. Conclusion

IRL is a SPV promoted by IPL to develop, design, construct, finance, commission, operate and maintain a power plant with capacity of 1350 MW (5x 270) at Nasik district, Maharashtra. The project is being developed as part of the multi product SEZ, being

developed by Indiabulls group, under a joint venture of MIDC and IBREL. IPL is also developing a thermal power project of 1350 MW size at Amravati district, Maharashtra and 1320 MW CSEB Bhaiyathan Power project at Bhaiyathan in Surguja District, Chhattisgarh.

India suffers from acute shortage of power. As per the 17 th Electric Power Survey carried out by the Central Electricity Authority (CEA) it is expected that power requirement would increase at a rate of over 7% till 2021. The western region of India is witnessing shortage in energy and peak demand deficits in the range of 15% - 16% and 14% - 25% respectively. The power demand scenario in western sector indicates that the power demand will continue to exceed the available and planned generation capacity in future. The Indian government through the Electricity Act (EA), 2003, has brought in several reforms in the sector and allowed more participation from private players in the power sector.

The present project benefits from experienced promoters, strategic location at Sinnar district which offers easy accessibility, availability of water, and fuel supply. The company is already in possession of encroachment and R&R free entire land of 900 acres required for the project. IRL has received water clearance from Nasik Municipal Corporation. The EPC contract for BTG has been awarded to BHEL. The company is currently in discussion with various contractors for the other packages.

The company has received allocation of coal from standing linkage committee of Government of India for 5.23 MTPA out of the total requirement of 5.94 MTPA . The company has received LOA from MCL , WCL and SECL mines. The deficit of approximately 0.71 MTPA is proposed to be purchased from open market.

The company has bidded under case-1 bidding for MSEDCL for supply of 950 MW net power under long term arrangement. It plans to sell balance (23.5% of generated power) on merchant basis.

The project has sound financials and the project IRR works out to 14.11%. The debt servicing capability of the project is estimated at comfortable levels under the various sensitized scenarios. The project emerges with strong technical, economic and financial fundamentals. In light of the above the investment in the project can be considered a fair banking risk.

Annexure I

Projected Financials of the company

Profit and Loss Account(Rs. Crores)For the year ending

Mar-14

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

Mar-23

Mar-24

Revenues

Long Term Sale 2034 2094 2122 2154 2189 2227 2269 2315 2364 2418 2477Merchant sale 748 761 761 761 761 761 761 761 761 761 761

Gross Revenues 2782 2855 2883 2915 2950 2988 3030 3075 3125 3179 3238Operating Expenses

O&M Expenses 201 212 221 229 239 248 258 268 279 290 302Primary Fuel Expenses 1176 1250 1308 1368 1432 1500 1571 1647 1726 1810 1899Secondary Fuel Expenses 14 15 15 16 16 17 17 18 18 19 19Total Operating Expenses 1391 1477 1544 1614 1687 1765 1847 1933 2023 2119 2220

PBDIT 1391 1377 1339 1301 1262 1223 1183 1143 1102 1060 1018

Depreciation 320 325 325 325 325 325 325 325 325 325 325

PBIT 1071 1052 1014 976 937 898 858 818 777 735 693Interest on RTL 549 504 448 392 336 280 224 168 112 56 7

Interest on WC Loan 28 30 30 31 32 33 34 34 35 36 38

PBT 494 518 536 553 569 585 601 615 629 643 648Taxation 84 88 91 94 97 99 102 105 107 109 110

PAT 410 430 445 459 473 486 499 511 522 533 538

Balance Sheet(Rs. Crores)For the year

endingMar-14

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

Mar-23

Mar-24

AssetsGross Block 6703 6703 6703 6703 6703 6703 6703 6703 6703 6703 6703

Less: Acc.Depreciation

401 726 1051 1377 1702 2027 2352 2677 3003 3328 3653

Closing Block 6301 5976 5651 5326 5001 4675 4350 4025 3700 3375 3049

Working Capital 348 361 369 377 386 396 406 417 429 442 455

Cash & BankBalances

248 386 673 974 1288 1616 1956 2308 2672 3046 3803

DSRA 402 507 479 451 423 395 367 339 311 283 131TOTAL ASSETS

7299 7230 7172 7128 7098 7082 7079 7089 7111 7145 7438

LiabilitiesEquity 1697 1697 1697 1697 1697 1697 1697 1697 1697 1697 1697Reserves & Surplus

503 934 1379 1838 2310 2796 3295 3806 4328 4861 5399

Net Worth 2201 2631 3076 3535 4008 4494 4992 5503 6025 6559 7097

Rupee Term Loan

4837 4328 3819 3310 2801 2291 1782 1273 764 255 0

WC Loan 261 271 277 283 290 297 305 313 322 331 341

For the year ending

Mar-14

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

Mar-23

Mar-24

TOTAL LIABILITIES

7299 7230 7172 7128 7098 7082 7079 7089 7111 7145 7438

Cash Flow Statement(Rs. Crores)For the year ending

Mar-12

Mar-13

Mar-14

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

Mar-23

Mar-24

Sources of FundsEquity Drawdown

521 536 46

Debt 2,627 1609 137Changes in WC Loan

- 63 198 10 6 6 7 7 8 8 9 9 10

PBDIT - 326 1391 1377 1340 1301 1263 1223 1183 1143 1102 1060 1018Less:Taxation

- 19 84 88 91 94 97 99 102 105 107 109 110

Cash Generation

3,148 2516 1688 1299 1254 1214 1173 1131 1089 1047 1004 960 918

Uses of FundsCapital Expenditure

3,148 2059 183.08

- - - - - - - - - -

Debt Repayment

- - 255 509 509 509 509 509 509 509 509 509 255

Interest Expenses

- 133 577 534 478 423 368 313 258 202 147 92 45

Changes in WC

- 84 264 13 8 8 9 10 10 11 12 12 13

DSRA - 131 270 105 -28 -28 -28 -28 -28 -28 -28 -28 -152Cash Usage 3,148 2407 1549 1161 968 913 858 804 749 695 640 586 161

Opening Cash Balance

- - 109 248 386 673 974 1288 1616 1956 2308 2672 3046

Addition - 109 139 138 287 301 314 328 340 352 363 374 757Closing Cash Balance

- 109 248 386 673 974 1288 1616 1956 2308 2672 3046 3803

Cost Comparison with other similar projects

Project Capacity (MW) Cost (Rs. Crore)

Rs. Crore/ MW

Vidharbha Industries Power Ltd. (Reliance ADAG)

300 2,070 6.90

Rosa Power Co. Limited (Phase-II)( Reliance ADAG)

600 3,034 5.05

GVK Power (Govindwal Sahib) Limited 540 3200 5.93Adani Power Limited (Mundra) 1320 7,249 5.49Indiabulls Power Limited (Amravati) 1350 6,888 5.10Indiabulls Realtech Limited (Nasik project)

1350 6,789 5.03

Jhabua Power Limited (Avantha Group) 600 2,910 4.85EMCO Energy Limited (GMR Group) 600 3,480 5.80

The cost of the IRL’s power project at Rs. 5.03 per MW compares favorably with other power projects being set up by various companies.