Project Initial Report

I. General project Information.

1. Project Name : SOLAR GREENHOUSE OF 3 MW CAPACITY
2. Location of the Project : NEAR TEJPUR/HARIDWAR, UTTARAKHAND, INDIA
3. Type of project : SOLAR PV PROJECT WITH HIGH TECH HORTICULTURE
4. Project Goal : HARNESSING THE RENEWABLE ENERGY WHILE EMPOWERING THE FARMERS
5. Technology used : SOLAR PV AND DRIP IRRIGATION
6. Project Participants : KK NESAR PROJECTS PRIVATE LIMITED, MOU BASED PILOT PROJECT
PPA CAN BE SIGNED BETWEEN DISCOM AND THE SPECIAL PURPOSE VEHICLE (TO BE
FORMED WITH THE INVESTOR) TO PROVIDE COMFORT & CONTROL TO THE INVESTOR.

II. Specific Project Information FROM KK NESAR PROJECTS PRIVATE

LIMITED, INDIA .
1. Feasibility :
a. Investment : INR. 33 CRORE / 3 MW INCLUDING EQUITY AND DEBT WITH A MAX. OF RS.5
CRORE IDS- SUBSIDY PROVISON. BENEFIT OF ACCELERATED DEPRECIATION OF RS.7.2 CR AS
TAX SAVING. BENEFIT OF RS.3 CR HORTICULTURE SUBSIDY (NET INVESTMENT OF RS.(33-
15.2 = RS. 17.8 CRORE FOR 3 MW- AFTER SUBSIDY REALISATION)
b. Installed capacity : 3 MW
c. Total Revenue after one year
of Commissioning. : FROM SOLAR & FROM AGRICULTURE A NET PROFIT (AT PRESENT NON
TAXABLE)
REVENUME FROM SOLAR ENERGY THE NET PROFIT FROM
INCOME/MW HORTICULTURE/MW
SOLAR TARIFF @Rs 4.48/KWH with a 25 Rs. 3 MINR /MW/Year for the initial 4 years
year PPA + till stabilization
Rs. 0.12/KWH to recover the transmission Rs.6 MINR/MW/ year from the year no.5
line cost on wards
(1.5Mkwh/MW/Year x (4.48+0.12) ) = Total Horticulture profit after
Rs.6.9 MINR/MW/Year HORTICULTURE working capital recovery
For 3 MW = Rs.20.7 MINR/year/3MW for 3 MW
= 3 x 3 = 9 MINR/3MW/year till year no.4
= 3 x 6 = 18 MINR/3MW/Year from year
no.5
Total project income = (20.7+9 = 29.7MINR)
= (20.7+18 = 38.7 MINR)
Project IRR = (2.97/17.8) = 16.7 % till year no. 4
= (3.87/17.8) = 21.7% from year no. 5

PLEASE NOTE THAT THE AGRICULTURE NET PROFIT SHALL INCREASE, WHEN UPGRADED
AND DEPENDS ON EXPORT AND DYNAMIC INDIAN AGRICULTURE MARKET PRICE. KK NESAR
 PROJECTS, THROUGH THEIR GREEN HOUSE OPERATORS VENDOR BASE, WILL BE
RESPONSIBLE FOR THE HORTICULTURE OPERATION, MAINTENANCE AND FIDUCIARY
RESPONSIBILITY ON THE FINANCIAL NUMBERS.
d. Cash Operating Cost after one
Year of commissioning: as mentioned in the table.
e. IRR ( on 100% equity) after 2 years of
Commissioning : As mentioned in the table the REVENUES & WITHOUT O AND M EXPENSE
AND WITH WORSE CASE OF AGRICULTURE INCOME AND GOOD CASE OF AGRICULTURE
INCOME WITH DEGRADATION OF PV PANELS)
2. Building Lease : AGRICULTURE LAND TO BE BOUGHT AS THE INVESTOR MAY HAVE THE CHOICE
OF PROJECT LOCATION. NO LAND LEASE FORESEEN AT PRESENT. ON THIS AGRICULTURE LAND,
THE PROJECT ASSET WILL BE CREATED ON PROJECT OWNERSHIP WITH FULL CONTROL / CHARGE
/ HYPOTHECATION TO THE INVESTOR
3. Project permits : WILL BE TAKEN AFTER SIGNING THE PPA
4. Existing Contracts: 3 MW, FIRST TIME IN INDIA WITH INNOVATION. 4 MOUs WILL BE 20MW.
5. Legal Status : MOU SIGNED WITH 4 STATE GOVERNMENTS
6. Time line : COMMISSIOINING DATE IS 20 MONTHS FROM THE DATE OF SIGNING OF PPA
7. GREAT Opportunity: The IRR mentioned as above are only for growing Vegetables, flowers,
medicinal plants, herbs etc. However, Growing Cannabis with a license from Uttarakhand
government is possible from the date of receipt of License. However, CBD Oil extraction
permission needs lot of time along with policy intervention. The financial numbers of Cannabis
growth to have CBD Oil extraction, will be a separate business case with additional investment
and will be discussed only after the receipt of the LICENSE to grow cannabis with CBD Oil
extraction.