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a). Assume 10,000 MW are bid in various state and Centre for Solar PV under Accelerated Depreciation (80% of the project cost will be tax free for a company which has made profit in their other business, which can be seen in AP bidder's list like in Real estate, timber, road, halwai, potato chips, jewelllary, breweries etc) scheme. i.e Government will not receive = 10,000 x 0.8 x 7 cr/mw = Rs. 56,000 Crore of Taxes !!
b). EXIM bank funds 80% of Debt, if only 20% equity is invested i.e to create 10,000 MW capacity, we need only 0.2 x 10,000 x 7 = Rs. 14,000 Crore. Rest EXIM will fund or we can tap kfw funds through IREDA with Indian Government's Sovereign Guarantee as happened in the past and is happening now which is why IREDA disbursed loans at 5% interest rate in the past.
Thus, Government can alone create this facility by investing Rs. 14,000 Crore or rs. 28,000 Crore (interest subvention to offer low cost pv tariff or Rs. 3/kwh i.e APPC costs, to the common people to have a total project cost interest rate of 2% till debt payment i.e 6% Exim interest minus 4% internal interest subsidy for debt which i account as rs. 14,000 in next 10 years with discounted cash flow), while retaining Rs. (56,000 - 28,000 = 28,000) crore for poor people scheme that too with low cost energy while creating large number of jobs in rural area.
[With this tax collection, Government can offer low cost interest rate like Govt of Gujarat offered to TATA NANO at 0.15% for Rs. 2100 Crore for 20 year term !! this was to create jobs in Gujarat]
EXIM is not the only Financial Institution, if the Government is the Mentor, many international institutions like kfw / our IREDA can arrange the funds for Debt. If it is difficult for IAS community, being an ex-PSU trained person, i can show the way, if the Government hires me / KK NESAR as Consultant.
Thus, Government can really come out with "Entrepreneurial Funding" Policy which is in cold storage.....to develop Renewable energy projects without Capital Subsidy or Viable Gap funding or Accelerated Depreciation, which have already killed Indian Economy with Pseudo Economy or Pseudo Policy making.
c). Government with its able tax administration can ask all these Investors to pay taxes, which they want to claim through Accelerated Depreciation and contribute to the growth of the Nation. This is what i expect from the Policy makers with learned business plan appended in Policy document. INDIA has that potential and also good officers too.
d). If Government does not want to develop project on their own, they, can develop small entrepreneurs (who can maintain the project with less overhead with such learned and open business plan with financial numbers) in each district who are qualified engineers with Solar PV back ground and fund them as indicated in our web site : www.kknesar.com so that new generation entrepreneurs can get self employed along with jobs to many people of their village / area for an inclusive growth with sustainability.
e). This is the answer for the people who always ponder, as to where is the money?? My answer is, please have the WILL TO DO [as explained above], we get the money and many good ways as there are many LinkedIn good people to throw good light too...