POWER FINANCE CORPORATION LTD.

APPLICATION FORM FOR FINANCING

( POWER PROJECTS )

HYDROELECTRIC POWER PROJECT (RESERVOIR/ RUN OF RIVER)

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 INSTRUCTIONS & EXPLANATORY NOTES
(PART - IIa)

1. Part - IIa consists of the information related to project in general including category of
Project/ Borrower, location, scope, implimentation schedule, phasing of expenditure, status
of Clearances/ land acquisition, details of other agencies involved along with procurement
details & method of procurement.

2. Applicant/ Implimenting agency means the existing power Co. and the Promoter Co. (If Co.
is newly formulated.)

3. Give full particulars, wherever asked, of the arrangements already made with copies of
supporting letter/ document.

4. Furnish procurement procedure followed/ to be followed in brief including shortlisting of

supplier, status of procurement/ dilivery, payments already made etc.

5. The cost of the project must be as per the annexure in Part - IIb and must be supported
with breakup of equipment/ packages and other works.

6. It may be noted that details furnished in this form must tally with the details provided in the
Project/ Feasibility Report. Any deviation must be supplimented with proper explanation.

7. All amounts must be expressed in Rs. unless defined otherwise.

8. Provide LIST of all Documents/Enclosures Attached

 POWER FINANCE CORPORATION LTD.

APPLICATION FORM FOR FINANCING

Project Information - General

DATE (of application) : 30th October, 2013

1. Applicant/Implementing Agency : IPP

Name of Agency : Krishna Priya Power Private Limited
Name of Co-ordinator : Thilotham R Kolanu
Address : Plot no: 59, Amar Co-op housing Society, Kavuri
Hills Phase II, Madhapur, Hyderabad - 500033
Phone No. : 040 64584004 Fax No.:040 23547590

2. Borrower's category & code : 06

(Refer Annexure - 1)

3. Brief description of the formation of the entity and its business fields: Krishna Priya Power Private
Limited (KPPL) has been incorporated to be a developer of renewable energy projects in the State of
Andhra Pradesh. The firm has initiated its vision by prospecting and acquiring two project licenses
across the Sileru river. KPPL wishes to expand its power production portfolio across all renewable
sectors – wind, biomass and solar – apart from its current hydel assets.

4. If IPP/Others, indicate status, Date of

signing & major conditions of;

a. MOU with SEB/State Govt. : April 2012 – Agreement with APGENCO

b. PPA with SEB (& Power purchased in MU) : NA
c. PPA with Third Party (& Power purchased in MU): 4 MW
i. Name : Radha Smelters Limited
Address : Sandeep Towers, Al-Kareem Trade Centre,
Ranigunj, Hyderabad
5. Name of the Project/ Scheme : 4 MW Mini Hydel Power Project at Forebay Comp of
Lower Sileru Hydro Electric Project near Mothugudem Village of Chintoor Mandal in Khammam District
:

6. Category of Project & code ( Refer Annexure - 2): 3.1/3.3

7. Location of Project
a. Place, Town : Mothugudem Village, Chintoor Mandal
b. District, State : Khammam District, Andhra Pradesh
c. Nearest Railway Station : Rajahmundry
d. Nearest National Highway : National Highway 221 – 40 KM

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8. Brief Scope of proposed Project : The project is envisaged to generate 4 MW of power from
canal discharges of the lower Sileru project. The proposed scheme is a low head vertical Kaplan Turbine
based and is expected to generate a PLF of 51%. The generated power is exported to the grid provided
by APNPDCL whose sub-station is 6 KM from the site.

9. a) Estimated Project Cost (proposed) (Base month/year): INR 30.19 Crores as on September, 2012

b) CEA Cleared Cost (Base month/year): CEA has suggested a cost of 6.5 Crore per MW for
projects in South India. However, due to the low head nature of this project, a project cost of 7.5 Crore
per MW is appropriate. This has been vetted by an independent financial institution.

c) Estimated Completion Cost

i. Without IDC : INR 27.80 Crores
ii. With IDC : INR 30.19 Crores
(As per summary Cost estimate)
d) Cost/ Date of EPC contract : INR 11.75 Crores – Taken from DPR – EPC for EM,
HM works only – Does not include Civil Works – October, 2013
e) Period of Completion : 18 Months

f) Date of start : December, 2013

g) Date of re-start (If applicable) : NA

with reasons for hold-up.

10.a) Expenditure Incurred : INR 2.5 Crores

(Upto the date of application)

b) Phasing of Expenditure

Sources (Rs. Crores)

Year of start \ Equity Loan
1st year (Dec 13 – Nov 14) 7.18 16.75
2nd year (Dec 14 – May 15) 1.28 2.98
TWO TABLES PROVIDED IN DPR – CONSIDERD ONE WITHOUT SUBSIDY

11. Status of Statutory Clearances (with

Dates & conditions as applicable)

a. Board : FBOT Agreement with APGENCO

b. State Government : Not Involved in the Project

c. CEA Techno-Economic Clearance

i) with conditions : Not Required
ii) without conditions : Not Required

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 d. Planning Commission : Not Required

e. Gazette Notification/ Local news : Not Required

paper publication (u/s 29 of ES Act)

f. Pollution clearances (Water & Air)

i) MOEF/CPCB : Not Needed
ii) State PCB : Clearance obtained – Obtained in 2009 – Valid for
Five years

g. Forest
i) MOEF : Not Required
ii) State Government : Not Required

h. Civil Aviation Clearance : Not Required

i. Any other : NA

12. Status of Land Acquisition: Land owned by APGENCO and permission given by APGENCO
to utilize the required amount of land for the construction of the project. However, APGENCO will
remain the owner of the land.

a. Land required (Acres) :

i) Forest :
ii) Agricultural :
iii) Others :

b. Land acquired (Acres) :

i) Forest :
ii) Agricultural :
iii) Others :

13. Project Implementation Schedule

a. Date of Order for Main Package. : December, 2013

b. Date of Start of Civil Works. : December, 2013

c. Date of Completion : May 2015

d. Date of Commercial operation. : July 2015

e. Execution by self/ EPC contractor (If EPC contractor, indicate whether equipment
manufacturer?): Executed in separate Civil and EM packages
f. Consultant(s) appointed (Engg. /Project Mgmt etc.)
Name Area of specialisation
Greenstratos Consulting Private Limited Technical & Project Management Consultant
Contec Design Consultants Design and Engineering Consultants
APITCO Limited Independent Project Appraisal Consultant

g. O&M Agency : Greenstratos Consulting Private Limited

h. Number of Packages identified.
i) Equipment & Services : EM, HM Works
ii) Service Contracts : NA
iii) Construction Contracts : Civil Works

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14.a Describe procurement procedure in brief followed/ to be followed for obtaining efficiency &
economy in purchase: KPPL is following and open tender process for the procurement of EM and HM
equipment along with Installation services. Similarly, civil contractors also will be selected through open
tendering. Greenstratos Consulting Private Limited has been hired to synchronize and manage the
bidding and execution processes in a time bound and efficient manner.

14.b Status of Procurement :

Sl Item/Package Ordered Name of Date of Value

No Identified (Yes/No) Supplier Award (Rs.Lacs)
1 EPC for EM & HM No To be November, 1175
works selected 2013 –
through Tentative
open (Bidding
tendering in
Process)
2 EPC of Civil No To be December 1383
Works selected 2013 –
through Tentative
open
tendering

[(For further details use Annexure-3.A (Term Loan) or 3.B (Lease Financing).]

15.a Cost (Rs/Kwh) of Generation

For the first year (indicate PLF) : 2.78, 51.3% PLF
levelised over life of the project :
(indicate PLF, life, Discount rate &
Year for which calculated)

15.b Cost (Rs/Kwh) of Transmission : NA

16. Estimated Sale Price of Generation : 5.00(Rs/Kwh)

at busbar/ any other point (specify)

17. Internal Rate of Return (FIRR) : 13.8%

for the Project

18 Category of Financing : Term Lending/ Equipment Leasing/Supplier’s

Credit/ Consortium Financing/ Syndicate Funding/
Providing counter guarantee.

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 ANNEXURE - 1

APPLICATION FORM FOR FINANCING

ENTITY CATEGORY CODE

Code No. Type of entity

01 - State Electricity Board.

02 - State Generation Corporation

03 - State Transmission and

Distribution Companies

04 - PSU(Central)-Generation

05 - PSU(Central)-Transmission/
Distribution

06 - New Independent Power

Producers (Private) -
Generation

07 - Existing Private Utilities

08 - New Private Companies- T&D

09 - Private Industries-Captive/
Co-generation

10 - Joint Sector Companies.

11 - Co-operative Entities

12 - Municipal Bodies

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 ANNEXURE - 2

APPLICATION FORM FOR FINANCING

CATEGORY OF PROJECT

CODE
NO. DESCRIPTION

1. Thermal Generation

1.1. Conventional Pulverised coal fired steam units.

1.2. New Technologies-Fluidised Bed (IGCC etc., Steam
Units).
1.3. Gas/Liquid Fuel (Open/Combined Cycle) Power plants.

2. R&M of Thermal Generation

2.1. Life Extension Studies, Renovation & Modernisation,

Refurbishment and Life Extension.

3. Hydro Generation:

3.1 Dam Storage/ Run Off River Scheme.

3.2 Pumped Storage Scheme.
3.3 Canal Drops Scheme.

4. R&M Hydro

4.1. Renovation Uprating, Life Assessment Studies & Life

Extension.

5. Transmission System:

5.1. New Power Evacuation/Transmission Line.

6. System Improvement (Transmission)

6.1. Strengthening/ Augmentation of Existing Lines and Sub-

stations.
6.2. Studies for R&M of Transmission Lines and Sub-Stations
and Implementation.
6.3. System Improvement/ Capacitor Installation.
6.4. Load Dispatch/ SCADA & Communication at region/state
level.

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 Contd...

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 ANNEXURE - 2

APPLICATION FORM FOR FINANCING

CATEGORY OF PROJECT

CODE
NO. DESCRIPTION

7. Distribution System:

7.1. Urban Distribution Systems-Improvement & Strengthening.

8. System Improvement(Distribution)

8.1. SCADA, Communication & Distribution Automation Systems

at District and City level.
8.2. SCADA, Communication & Distribution Automation Systems
at region/state level.
8.3. System Improvement including Capacitors.
8.4. System Improvement including Meters.
8.5. System Improvement including Energy Accounting.

9. Non-Conventional/Decentralised Generation

9.1. Non-conventional power plant (Biomass/ Other Fuel)

9.2. Solar Thermal/Photo Voltaic etc.
9.3. Wind Mills/Farms.
9.4. Geo-Thermal Power.

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 ANNEXURE - 3.A

PROCUREMENT STATUS (Term Loan Financing)

Status of Project : (New/ Expansion/ Modification/ Diversification)

Sl. Equipment Method of1 Status2 Date of Cost(Rs.) Supplier

No. Name (Qty) Procurement Order -Delivery Invoice -Estimated Name Brief-Address

1
ICB/ LCB/ Direct/ Limited tender/ Off the shelf/ Other.
2
Pre NIT/ NIT/ Bid opened/ LOI/ Awarded/ % Mat. Recd./ Delivered.
 ANNEXURE - 3.B

PROCUREMENT STATUS (Lease Financing)

Proposed Lease Period : Primary = ____Yrs. Secondary = ____Yrs.

Status of Project : (New/Expansion/Modification/Diversification)

Sl. Equipment Supplier Cost(Rs.) Date of Advance to Depreciation S.T.

No. Name (Make) Name Brief-Address Estm. Invoice Order Deliv. Supplier(Rs.) (as per IT Act) (CST/GST)
 INSTRUCTIONS & EXPLANATORY NOTES
HYDRO ELECTRIC PROJECT (PART - IIb)

1. Part - IIb consists of the information specific to Hydro Electric Project including capacity and
need of the Project, details of infrastructure arrangement and environmental/ rehabilitation
issues alongwith salient feature/ technical particulars, benefit, cost, financial return and risk
involved.

2. Furnish details of existing generation units, if proposal is for extension work.

3. Furnish detail of agreement, if Inter-state or Inter-country project alongwith copies of

supporting letter/ document

4. Give details of allocation of cost and sharing of benefit, if multipurpose project.

5. Furnish past operating performance data in case of Renovation Uprating of existing

generation units along with the maintenance history of major equipment.

6. Furnish details of Environment/ rehabilitation issues and mitigation majors recommended,

already taken and planed.

7. Furnish detailed technical specification for equipment already procured/ finalised for
procurement.

8. Provide basis of (calculation of) physical benefits.

9. The cost of the project must be as per the Annexure supported with break-up of equipment/
packages and other works. The basis of cost, such as actual procurement/ awarded (with
dates) or estimated must be brought out clearly.

10. Provide basis of assumptions made for calculation of Financial Rate of Return (FIRR).

11. All amounts must be expressed in Rs. unless defined otherwise and technical quantities
must be given with appropriate units where ever not defined.

12. Provide list of all Documents/ Enclosures Attached.

 APPLICATION FORM FOR FINANCING
(Preliminary)

Project Information-Specific

HYDRO ELECTRIC POWER PROJECT ( RESERVOIR/ Run Of River )

1. Name of Project : 4 MW Hydro Electric Project at the Forebay Camp of

Lower Silery Hydro Electric Project at Mothugudem Village
2. (a) Type of Scheme : (Low head canal drop scheme Run of River

(b) Purpose : (Power/ Multipurpose/Others-specify)

3. (a) Name of the River : Sileru River

River basin : Sileru River basin
(b) Geographical Co-ordinates : Latitude: 17°51'52.60 N, Longitude81°42'30.16 E
M9/5 +250’ of Power canal joining into Forbay Reservoir of Lower Sileru Project and
Power Plant located 90m d/s

4. Proposed project
(a) No. & Rating of each unit (MW). : 3 X 1.334MW
(b) Total Installed capacity (MW) : 4 MW
5. Whether Inter-state/country Project? : (Yes/No )
If Yes, furnish the following;
a) Name of beneficiary states : NA

b) Sharing of cost amongst : NA

beneficiary states.

c) Sharing of energy amongst : NA

Beneficiary states

d) Any important issue to be settled : NA

amongst beneficiary states which
has bearing on implementation of
project or Sharing of cost/ benefit.

e) Salient features of water treaty/ : NA

sharing among beneficiary states.

6. Status of infrastructure works :

a) Approach road to PH, Dam, HRT : Existing Road till the Project Site
TRT & other major structures.
b) Township/ building : NA
c) Construction Power : Can be taken from the nearest sub-station
d) Availability of construction material : (Distances from nearest source)
Cement: within 150 KM
Steel: within 150 KM
Sand: within 150 KM
Aggregate: within 150 KM
Bricks/ Stones: within 150 KM

7. If multipurpose project, furnish the

following information.
15
  Name of other Utilities : NA
 Sharing pattern of benefits : NA
 Sharing pattern of cost : NA

8. Levy/ Cess/ Royalty

 Water Cess : As per Govt Norms
 Free power to state : NA
 Royalty to state/ centre (if any) : NA

9. Need and justification of the project in brief. (attach sheets if required).: POWER SCENARIO
OF ANDHRA PRADESH AND FINANCIAL SUMMARY

India as a country and Andhra Pradesh as a state have always been power deficit with peak demand
supply gap in double digit percentage points. In order to address these gaps, there have been many
policy measures to increase the power generation capabilities of the both government owned generation
companies and Independent Power Producers (IPPs). Apart from increasing generation through fossil
fuel based generation techniques, there has been intense focus on clean energy sources.

As a part of this the Government of India has initiated different programs and incentives for the
encouragement of renewable energy projects.

Given the focus on developing renewable energy sources and ever increasing demand for power, the
industry is destined to grow rapidly over the next decade. The demand supply gap along with a
consistently growing economy and improved rural electrification, the demand for sustained electricity
supply will only increase and its rate of growth will outstrip the rate at which the economy is growing.

10. Salient features of project (in brief) : (Enclose copy of Index Map)

a) Hydrology
Catchment area upto site : Based on Discharges from the Reservoir Upstream
Average rainfall : 1314 MM
Inflow with 90% dependable : 2.98 MCUM (Avg.)
Inflow with 75% dependable : 3.42 MCUM (Avg.)
Inflow with 50% dependable : 28.77 MCUM(Avg.)

b) Dam/dykes/barrage:
No. Type Discharge Length Height
i. Coffer Dam 2 Masonry 127.4 Cumec m m
ii. Diversion tunnel/Channel 1 Masonry 127.4 Cumec m m
iii. Dam(s) NA
iv. Dyke(s) NA
v. Barrage(s) NA
vi. Weir 1 Ungated Weir 127.4 Cumec 400 m m

c) Reservoir : NA
i. Gross storage (MCM): NA
ii. Live Storage (MCM) NA
iii. FRL (EL) FSL of Forebay (EL) : 283.769 m
iv. MDDL (EL) 277.368 m

d) Water Conductor System :

No. Type Discharge Length Size
i. Tunnel NA
ii. Channel NA
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 iii.
Desilting arrangements NA
iv.surge shafts NA
v. Pressure shafts NA
vi. Any other Small forebay will feed the units through Siphon
intake
e) Hydro-mechanical works:
No. Type Size Lining Location
i. Gates & Hoists 6 Vertical lift with rope drum hoist 4 m x 3.2 m
Intake & Draft tube
ii. Penstock NA
iii. Spillway 3 Nos. Vertical 4.0 m x 3.2 m
iv. Other

f) Power House :
i. Type : (Surface/ Underground/ Shaft)
ii. Annual PLF/ Availability : 51.3%

iii. Turbines No.: 3

Type: Vertical Kaplan
Discharge: 41.49 Cumecs
Head: 4.32 Max and 3.60 Normal
Size

iv. Estimated Energy Potential

 90% dep. Year : 13.576 (MU/Yr)
 75% dep. year : 18.762 ( (MU/Yr)
 50% dep. year : 22.592 (MU/Yr)
Annual average energy generation of 18.182 MU is possible based on the useful data for 15 years

i. EOT Crane (No./Capacity) : One Crane with capcity 20 Ton

ii. Generator No.3, Rated Voltage:3.3 kV, Rated output: 1334 kW

iii. Generator Transformers No. 1, Rated Voltage:33 kV, Rated output:5500 kVA

g) Tail Race
i. TWL (Max.)/(Min.) : Max: 282.392 m Min: 279.449 m
ii. Type : Tail race pool joins the forebay of the downstream
scheme LSHES of AP GENCO
iii. Size : NA
iv. Length (Mt.) : NA
v. Discharge (cusec) : NA

h) Switchyard
i. Voltage : 33 kV
ii. Size/ Type : Outdoor type of size 20 m x 10 m
iii. No. of bus/ feeders : 1 bus & 1 feeder
11. Evacuation system
a) No. of evacuation lines : 1 no.
b) Capacity/length : 33 kV line of length 9 kM
c) Voltage level at grid point : 33 kV
d) Likely date of completion : 3 months

12. Environmental Issues :

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a) Conditions of MOEF clearance : NA
(If any)
b) Impact on
 Flora :
 Fauna :

18
 a) Whether any health related : ( Yes/ No)
problem envisaged?
If yes, please give details. :
:

a) Whether CAT studies done? : ( Yes/ No)

If yes, please give details. :
:

a) Whether any sedimentation : ( Yes/ No)

studies done?
If yes, please give details. :
:

a) Impact on historical monuments : NA

(If any)

b) Any other related issue :

13. Total submergence of land – No Submergence is envisaged

a) Forest :
b) Non-forest :
c) Agriculture :
d) Non-agriculture :
e) Any other :

14. Rehabilitation/ Resettlement

a) No.of villages that will be affected : NA
/submerged.
b) No. of families/ persons to be : NA
displaced/ rehabilitated.
c) Estimated cost of rehabilitation : NA
/resettlement
d) Amount already spent on : NA
rehabilitation/ resettlement

15. Any effect of proposed upstream/

downstream project on;
a) Implementation of Project :None
b) Benefits from the project : None

16. Break-up of cost estimate : (As per Annexure)

17. Indicate assumptions made for calculation of FIRR

 Sale price of energy : INR 5 per Kwh
 O&M Cost : 56.40 Lakhs with 5.72% accelaration
 Project cost estimate : 30.19 Crores
 Exchange Rate used : NA
 Depreciation : As per IT, Companies and Electricity Acts
 Any Other :

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18. Benefits from the project :

 Annual energy generation (MU) : 18 Million Units

 Firm energy in Mu/ Yr :
 Secondary energy in Mu/Yr :
 Peaking capacity in MW :
 Any other benefits :

19. Project risks as perceived by SEB/

Utility/ IPP with respect to;
 Geology : Firm Land with very low seismological risk
 Hydrology : Very consistent and dependable flows from the
reservoir upstream
 Seismology : Low Risk
 Environmental : NA
 Social/Rehabilitation : NA
 Project Cost : All contingencies considered
 FOREX : None
 Any other :

20. List of Load Centres: Name Demand

 Present: Surrounding Districts

 Future

21. Special feature of the Project :

(If any)

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 ANNEXURE

BREAK-UP OF PROJECT COST ESTIMATE

HYDRO ELECTRIC POWER PROJECT (RESERVOIR)

UNIT-I (Headworks incl.Dam, Dyke, Spillway, Intake Structure & Diversion Works etc.)

PROJECT : (Rs. Crores)

S.NO. DESCRIPTION Capital Cost REMARK
Ic Fc Total
(1) (2) (3) (4) (5) (6)

A: DIRECT CHARGES
A : I. CIVIL & ENGINEERING WORKS
A Preliminary Works
B Land & Development
C Works
D
E
F
G
H
I Navigation Works
J
K Buildings (Res./Non-Res.)
L
M Plantation (Trees/ Arboriculture)
N Tanks & Reservoirs
O Miscellaneous
P Maintenance (Headworks/ Bldg./Roads)
Q Special Tools & Plants
R Communication (Road/ River/ Rail/ Air)
S
T
U
V
W
X Environment & Ecology
Y Losses on Stock
Z Damage Restoration

A : II. Establishment
A : III. Tools & Plants
A : IV. Suspense
A : V. Receipt & Recovery

B: INDIRECT CHARGES
B : I. Capitalisation of abatement of land revenue
B : II. Audit & A/c.
B : III. Contingency
B : IV. Working Capital Margin
B : V. Interest During Construction

TOTAL (UNIT - I)

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 ANNEXURE

BREAK-UP OF PROJECT COST ESTIMATE

HYDRO ELECTRIC POWER PROJECT (RESERVOIR)

UNIT-III (HYDRO-ELECTRIC Installations)

PROJECT : (Rs. Crores)

S.NO. DESCRIPTION Capital Cost REMARK
Ic Fc Total
(1) (2) (3) (4) (5) (6)

A: DIRECT CHARGES
A : I. HYD. & ELEC. ENGG. WORKS
A Preliminary Works
B Land & Development
C
D
E
F
G
H
I
J Powerplant Appurtenances (Civil Works)
K Buildings
L
M Plantation
N
O Miscellaneous
P Maintenance
Q Special Tools & Plants
R Communication (Road/ Rail)
S Power Plant & Electrical System
T
U
V
W
X
Y Losses on Stock
Z

A : II. Establishment
A : III. Tools & Plants
A : IV. Suspense
A : V. Receipt & Recovery

B: INDIRECT CHARGES
B : I. Capitalisation of abatement of land revenue
B : II. Audit & A/c.
B : III. Contingency
B : IV. Working Capital Margin
B : V. Interest During Construction

TOTAL (UNIT - III )

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