Project Profile: Small Hydroelectric Power Plant

PROJECTSUMMARY
1
TheProposal
2
ProposedLocationoftheproject

3
4

Products/Servicesandinstalledcapacity
Market

5
6

Plant&Machinery

CostofProject

MeansofFinance

Profitabilityatoptimumlevel

FinancialIndices

: TosetupaSmallHydroelectricPowerPlant
: The following factors need to be thoroughly
examinedbeforefinalizingthelocation
a. Water stock consistency during various
seasons
b. Theheadavailable
c. NearnesstoexistingKSEBsubstation
d. Population density (for assessing
rehabilitationrequirements)
: 3MWCapacity
: ConsentfromKSEBisrequiredfortheproject.Also
a power purchase agreement with KSEB needs to
be executed after approval from Kerala State
ElectricityRegulatorCommission(KSERC).
: The power plant equipments are proposed to be
eitherprocuredindigenouslyorimported.

Rs.Lakhs
: Land&LandDevelopment
60.00
(10Acresonlease/purchase@Rs.5
lacs per acre, including Rs. 10 lacs
rehabilitationcharges)
: Building&CivilWorksandpipes
500.00
: Plant&Machinery
880.00
: TransmissionLine
180.00
: Prel.&PreoperativeExpenses
190.00
: Contingency
90.00
:
Total
1900.00
: PromotersContribution
950.00
: TermLoan
950.00

Total
1900.00
: OptimumUtilization(3rdYear)
60%
(%ofinstalledcapacity)
: SalesTurnover(Rs.lakhs)
550.00
: Profitbeforeinterest,depreciation&
440.00
tax(Rs.lakhs)
: CashProfit(afterinterest)
280.00
(Rslakhs)
: NetProfit(PAT)(Rs.lakhs)
180.00
: DebtEquityRatio
1:1
: DSCR(average)
:
:
:
:

10

Manpower

BreakEvenPoint%
IRR(%)(foraperiodof15years)
PayBackperiod(Years)
Moratorium

1.90
36.75%
15.40%
5.35
2
Year
Implement
ation
Period + 1
Year

: 14Persons

Project Profile: Small Hydroelectric Power Plant

11

ImplementationPeriod

: Implementationperiodconsideredat24months

PROJECTDETAILS

THEPROPOSAL

The proposal is to setup a 3 MW Hydro Electric Power Plant at a location suitable depending on various
parameters. The major plant & machinery (turbine & generators) could be either indigenously procured or
imported.ThetotalcostoftheprojectworksouttoapproximatelyRs.1900.00lakhs.

I. TECHNOECONOMICASSESSMENT

Concept

TheSmallHydroPowerPlant(SHPP)canbesetupinamajorstreamhavingcontinuesflowofwaterinallseasons.
Theconcepthereistakinginletwateratahigheraltitudeinthestreamandfeedingbackthewatertothesame
stream at a lower altitude after passing through the turbine. No inter basin transfer of water is envisaged. A
detailedstudyonthelocationforconsistencyofwateravailabilityindifferentseasons,headavailability,nearness
toKSEBsubstationandpossibletransmissionlinerouteetc.needtobethoroughlyexaminedbeforefinalizingthe
projectlocation.

Location&Site:Thefollowingfactorsneedtobethoroughlyexaminedbeforefinalizingthelocation

e. Waterstockconsistencyduringvariousseasons
f. Theheadavailable
g. NearnesstoexistingKSEBsubstation
h. Populationdensity(foraccessingrehabilitationrequirements)

Project Profile: Small Hydroelectric Power Plant

CostofProject

ThetotalcostoftheprojectenvisagedisaboutRs.1900.00lakhs.Thebreakupofthecostissummarizedbelow.

Land&LandDevelopment
60.00
(10 Acres on lease/ purchase @ Rs. 5 lacs per
acre, including Rs. 10 lacs rehabilitation
charges)
Building&CivilWorks
500.00
Plant&Machinery
880.00
TransmissionLine
180.00
Prel&PreoperativeExpenses
190.00
Contingency
90.00
Total
1900.00

Abroadbreakuponthecostoftheprojectisasbelow

LandCost
Sl.
Equipment
Cost in Rs.
No.
Lakhs
1
10AcresofLand
60.00
(10 Acres on lease/
purchase @ Rs. 5 lacs per
acre + Rs. 10 lacs
rehabilitationcharges)

CostofCivilWorks&Pipes
Sl.
Equipment
Cost in Rs.
No.
Lakhs
1
Diversionweir
2
PowerChanel
3
DesilitingTank
4
Forebay
500.00
5
Penstock
(150200 Mtrs length
depending on the head and
horizontal length to the
powerhouse)
6
PowerHouseBuilding

Plant&Machinery:Themajorplantandmachineryconsistsof:
Sl.
Equipment
Cost in Rs.
No.
Lakhs
1
HorizontalFrancisTurbine&
800.00
Generator
(2UnitsX1.5MWincluding
Costofdesign,test&supply
andotherauxiliaryitems))

Project Profile: Small Hydroelectric Power Plant

2

TransmissionLine
Sl.
No.
1

Switchyard Equipments &

Communicationsystems
Total

80.00
880.00

Equipment

Cost in Rs.
Lakhs
Power Transmission Line to
120.00
nearest substation and
transformer
(Assumed 20 KM @ Rs. 6
LacsperKM)
Transformers&accessories
60.00
Total
180.00

Prel.&PreOperativeExpense
Sl.
Equipment
Cost in Rs.
No.
Lakhs
1
TEF Study, Establishment
10.00
ChargesEtc.
2
Prel.
Administration
10.00
Charges
(during
implementation
period)
3
ConsultancyCharges
10.00
4
Interest
During
120.00
Implementation
5
Margin Money for working
40.00
capital
(1
months
operating
expenses)

Total
190.00

Manpower:Thetotalmanpowerrequirementfortheadministration&maintenanceofthefacilityis14numbers.
Thedetailsoftheemployeeswithdesignationandnumbersaregivenbelow:

Managerial/Supervisory
havingtechnicalbackground)
2
Skilled

SemiSkilled

SecurityStaff/OtherStaff

Total
14
ImplementationPeriod:Atwoyearimplementationperiodisenvisaged.

MeansofFinance

Themeansoffinanceproposedisasfollows:

Rs.inLakhs
Promoters
950.00
TermLoan
950.00
Total
1900.00

Project Profile: Small Hydroelectric Power Plant

TheDebtEquityRatioworksoutto1:1fortheproject.

CostofoperationandProfitability

Theassumptionsunderlyingprofitabilityestimatesaregivenbelow.

Items
Norms&Assumptions
I
CAPACITYAT100%

PlantCapacity
3MW
Unitssaleableat100%Capacity
26.28MegaUnits

AverageAnnualCapacityUtilization
1stYr
2ndyr
3rdYronwards

40%
50%
60%
II INCOME

AverageUnitPrice Rs.3.5/KWH
III EXPENDITURE(100%capacity;Majorexpenditure)

Salary/Laborcost
Rs.30.00lakhsforthefirstyear

Overheads
Rs.25 lakhs/year, 5% increase is provided for
subsequentyears.

Repairs&Maintenancecharges
1.5%offixedassets

Insurancecharges
0.25%offixedassets.

Profitabilityindicatorsareshownbelow

60%
OptimumUtilization(3rdYear)
(%ofinstalledcapacity)
SalesTurnover(Rs.lakhs)
550.00
Profitbeforeinterest,depreciation&tax
440.00
(Rs.lakhs)
CashProfit(afterinterest)
280.00
(Rslakhs)
NetProfit(PAT)(Rs.lakhs)
180.00
DebtEquityRatio
1:1
DSCR(average)
BreakEvenPoint%
IRR(%)(foraperiodof15years)
PayBackperiod(Years)

1.90
36.75%
15.40%
5.35

II. MARKETASSESSMENT

ConsentfromKeralaStateElectricityBoardhastobeobtainedfortheprojectandapowerpurchaseagreement
withKeralaStateElectricityBoardneedtobeexecutedafterapprovalfromKSERC.

Project Profile: Small Hydroelectric Power Plant

III. CONCLUSION
Theproposalisfoundtobetechnicallyfeasibleandeconomicallyviable.Theselectionoftheprojectlocationhasan
importantroleforconsistencyinoperationduetowateravailability.

Disclaimer:
The findings contained in this Project Profile are based on the initial information collated
through primary and secondary research, which is indicative in nature. Reference herein to any
specific commercial product,process, service by trade name,trademark, manufacturer, or
otherwise, does not constitute or imply its endorsement, recommendation, or favoring byKSIDC
or any entities thereof.