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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 by professionally qualified hydel engineers and the investor’s involvement is negligible, besides counting money for 60 yrs. 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.

The process is like this: Water is collected in an intake above stream and travels down through steel pipes and from a specified height falls on the Turbines which are connected to an electrical generator / alternator thereby generating electricity. The more the flow / fall there is, the more potential power can be generated.
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.
HP,SEB shall purchase Power @ Rs 2.87 / unit.
The project is applicable for carbon credit @ 50 paise / unit.
HPSEB shall clear all dues on account of purchase of Power within 30 days from the receipt of the Bill, failing which penalty @ 1.5% shall be payable by HPSEB.
Capital Subsidy will be 45% of Project cost limited to Rs 2.25 Crores + 37.50 Lacks per MW extra or you may get Interest subsidy for example for a 1 Mw it works out to 7.5 %.
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 yrs.
It takes 3 yrs to : Obtain MOU, measure water level ( Techno Economic clearance taken,water measured then Detailed Project Report ( DPR ) prepared, clearances taken, Implementation agreement executed, land derived, Power purchase agreement executed, loan derived. 1 to 2 yrs for construction ( depending upon it's size ).
1MW Project produces : 87 lack units / annum on 100 % utilisation but assuming the Plant runs on only 60 % efficiency then it will give you a NP of 01 crore / annum initially or if it works on only 50 % efficiency then also it shall give NP of 80 lacks / annum. Your own equity for a 1 Mw has to be around 3.5 crores.
Full utilization is reached within 5 mins of starting the flow of water.
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.

Loan / equity ratio is : 70 / 30 % . Cost per Mw works out to 6 to 7 crores.
The best projects in hand with me are :-

Note :
1. Himachal Government purchase rate as of now is Rs 2.87 + you get Carbon Credit from the world bank @ 50 paise / unit.
2. Projects working on 40 % PLF are considered viable.
3. The prospective buyer shall have to hire us by paying Rs 45,000 and in return we shall suggest Projects in his budget, get him relevant documents, organise Site visit and meeting with the Seller.
4. Cost of construction comes to Rs 6 to 7 Crs / Mw.
5. Clearances remaining to be taken can be enthrusted to a local Person and expenses paid by the Buyer.
6. For Hydro Consultancy, Construction & Commissioning I can refer the Buyer to a Company.
We have mandates from maximum buyers and connections in the departments concerned.
For any other information you may contact me .
Present one project 5+5 MW is for sale for a demanding price of 100Cr.Bargain may be between 90-95 Crores.It is complete and just started running. Buyer will avail subsidy and all benefits.pLease call for further enquiry

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