HYDRO POWER  PROJECTS 

     An excellent Investment opportunity !  

 NOTE : This is such a Business / Project  where there is no labour, raw material,  electricity, marketing problems, and one can  run it by remote control, as it is run by  professionally qualified hydel engineers  and the investor’s involvement is negligible,  besides counting money for 40 yrs extendable by another 20 yrs. 

According to a recent research report by Associated Chambers of Commerce and Industry of India  (Assocham),the Indian power sector has attracted more than $4 billion during this year - about a third of the corporate sector's total investment. "As power is one of the top priorities of the policy makers, huge investments have been planned by various companies, including Tata Power, Sterlite Industries, Jindal India Thermal Power and Lanco Group," the Assocham report noted recently. Small players too are not lagging behind.

The power sector requires a total investment of $155 billion. It is being driven by the fundamental changes in the Electricity Act 2003 that aim to make it more competitive and bring back the interest of private sector in the development and operation of power plants in India.

 What is small Hydro ?   Hydro-electric power is the technology of generating electricity from the movement of water. Small Hydro is the application of Hydro electric power on a commercial scale which can serve a medium sized Industry.   

  A generating capacity of upto 25 Megawatts ( MW ) is becoming generally accepted as the upper limit to what can be termed as “ Small Hydro .” A small Hydro Project requires a sizable flow of water and a reasonable height of water, called the head. 

   The Developer will be permitted to establish, own, operate and maintain  the Project for a period of 40 yrs,  extendable by 20 yrs. Thereafter the Project shall   revert back to the State Govt free of all  encumbrances.

 UK,SEB  purchases Power @ Rs 2.87 per unit.   

The project is applicable for carbon credit @ 50 paise / unit.   

Capital Subsidy  will be 45 % of Project cost limited to Rs 2.25 Crores + 37.50 Lacks per additional MW. For a 5 Mw Project it works out to 04 crores or you may get interest subsidy which is 7. 5 % for a 1 Mw Plant.

Promotional Subsidy on cost incurred for carrying out Detailed survey and investigation and preparation of Detailed project Report ( DPR) = Rs 3 Lakhs. 

 No Tax on Income for 10 Years thereafter 30 % exempted for another 10 yrs..   

The Project becomes operational in about 4 to 5 years.

It takes 3 yrs to :

Obtain MOU, measure water level ( measured for 2 lean seasons ) then Detailed Project Report ( DPR ) prepared & submitted to obtain Techno Economic Clearance from the Government, clearances taken, Implementation Agreement executed, land derived, Power purchase agreement executed, loan derived. 

 1 to 2 yrs for construction ( depending upon it's size ).  

1 MW Project produces : minimum 87 lack units on   100 % PLF ( Plant load factor / output / % of generation ) and Net profit comes to about 80 lacks / Mw / annum initially. ( Considering PLF to be 60 % only ). To acquire a 1 Mw Project your own Equity has to be about 2.75 Crores, rest would be loan.

 Initially cost of generation is high, around Rs 1.50 / unit because interest on loan has to be given  to the bank, but every year Income starts rising as burden of interest reduces.  When the loan has been returned then cost of generation per unit is around 35 paise.  

As per the old Govt's policy anyone could take on Project of any size, but now as per the new Govt's policy, Projects upto 5 Mw shall be reserved for Uttrakhand domiciles only, therefore very few small projects are available for sale as of now.

Loan / equity ratio is : 70 / 30 % .

     Projects with me : 

  I have through my Contacts various options available with me in Uttrakhand / Himachal ranging from 1 Mw to 9 Mw, best ones being - 4. 5 Mw & 3 Mw = 7. 5 Mw ready for construction activities to start, all NOC's and liscences taken, land also acquired. 5 & 2.2 Mw with almost all NOC's & 9 Mw ready for construction. 

02 Projects equalling 87.5 Mw in Sikkim, construction can start in 6 Mth's time.

Note :-

 Projects working on 40 % PLF are considered viable .

The prospective buyer shall have to pay me Rs 25,000 and employ our services. In return we shall suggest some good option to him, get him the relevant papers and organise Site visit and meeting with the Seller.

For Hydro Consultancy, preparation of DPR, Construction, Commissioning, Operation & Maintenance of the Project, I can refer the Prospective Buyer to Company in Delhi which takes on such Contracts.

We provide our Clients with the best and most profitable options.

We can also get you Projects allotted in the wind Power sector in Rajastan where the tarrif rate is Rs 4.28 / unit and PPA done for 20 years. 10 year tax holiday and the return on Investment comes to 23 %. Project cost here too comes to about 6. 5 crores / Mw.