Urban Distribution System-Improvment

POWER FINANCE CORPORATION LTD.

APPLICATION FORM FOR FINANCING

( POWER PROJECTS )

URBAN DISTRIBUTION SYSTEM-IMPROVMENT & STRENGTHING

_________________________________________________________________

PFC reserves the right to reject the loan application and is not liable to answer further queries in this regard.

PREFACE

These `Application Forms for Financing’ have been prepared by Power Finance Corporation Ltd. for use by prospective borrowers seeking financial assistance for setting up/ revamping power projects in the areas of generation, transmission and distribution etc. In drafting these forms, PFC tried to consolidate basic information which are required for appraisal of the project for financing.

The details sought in the application form are structured as Part-I (Institutional Appraisal & Credit Assessment), Part-IIa (Project - General) & Part-II b (Project - Specific). Part-I, Part-IIa and Part-IIb put together forms the complete “Application Form for Financing”. Borrowers are expected to furnish all the informations as per these forms in totality for speedy processing of request for financing. All the enclosures, as sought in the application forms, should be submitted alongwith it.

At the time of application the promoter/ applicant Co. should normally have achieved the following mile stones;

a. Letter/MOU with Govt.b. Registration of the Company.c. Identification of equity and its contributors.d. CEA clearance (As the case may be)e. PPA (Signed/Agreed Draft)f. Fuel linkage (In case of Thermal Generation Project)

The instructions to the applicant are given at the beginning of these forms. Certain clarification or explanatory notes are also given inside the forms at appropriate places to help the applicant fill the forms correctly..

The preliminary scrutiny of the loan application would be based on the information provided herein and therefore, information given should not lead to misrepresentation of facts.

__________________________________________________________________

PFC reserves the right to reject the loan application and is not liable to answer further queries in this regard.

INSTRUCTIONS TO THE APPLICANT(Part-I)

1. Application is to be prepared and submitted using three part formats (Application Form For Financing Part – 1, IIa & IIb) including additional sheets wherever required. Part – I consists of Institutional Appraisal and Credit Assessment Particulars. Part – IIa consists of General Information about the Project & Part - IIb consists of Information specific to Project.

2. All information sought in the format should be provided clearly and item-wise, avoiding cross references either to other parts of the format or to the annexures as far as possible. Cross references may only be given for providing supplementary details as and when required.

3. The applicant entity must nominate authorized signatory/Cordinator for subsequent clarification on this proposal, under a certificate to this effect. PFC will not be responsible for any consequence arising out of false information provided in these forms.

4. The information provided shall be up-to-date on the date of application and all the pages of the duly filled-in application format should be signed by the authorized signatory of the applicant organization. (Part I should be signed by Company Secretary or Statutory Auditor of the Company).

5. The preliminary scrutiny of the proposal could be carried out by PFC strictly based on the information furnished by the applicant on these formats.

6. The proposal accepted after preliminary scrutiny will only be considered for detailed appraisal and entity will be required to furnish further details sought time to time in this regard.

7. The loan application in case of thermal projects will be considered for appraisal only after allocation of fuel linkage by Govt. of India.

8. Two copies of latest DPR and EIA (Environmental Impact Assessment) report may be furnished alongwith the complete application.

9. The loan application in the prescribed format together with all the enclosures shall be submitted in triplicate to :

General Manager (Project Appraisal - ____________Region*)Power Finance Corporation Ltd.

Urja Nidhi, 1, Barakhamba Road, New Delhi

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Institutional Appraisal and Credit Assessment Particulars

DATE (of application) :____________________

1. Name of the Company :____________________

2. Date of incorporation :____________________(Enclose copy of Memorandum and Articles of Association)

3. Name of the Promoters (Give details as per Annexure – A in case of Corporate Bodies and as per Annexure”B” in case of individuals.)

4. Name of the Directors (Give details for each of the Directors as per Annexure “B”)

5. Project Details (a) Project size (Rs. Crs.)(b) MWs(c) Equity proposed.(d) Fuel type

6. Sources of Finance

Equity Share capital

Promoters Collaborators etc. Public

Loans Foreign currency

loan (specify)(Amount / period/ Rate of interest/ Financing charges)

Rupee loan

PFC Others

(Specify)

(Amount/ period/ Rate of interest/ Financing charges)

Others (Specify)

7. Company information on applicant company/ promoter co./ associated co.

(Refer Annexure “A”)

8. Indicate expenditure (if any) already incurred and sources from which expenditure has been financed.

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9. Briefly describe arrangements made so far/proposed in raising finance. (Enclose following) :

(i) Copies of sanction letter(s)/ in principal approval if already obtained.(ii) Note giving details of arrangements among promoters on equity contribution,

management of the Company etc. (Give copy of the agreement, if any).(iii) In case applicant company is an existing Company :

(a) Indicate such terms and conditions imposed while raising resources from FIs/Commercial banks, etc. which have bearing on the management and operations of the Company or on raising of loans in future or on creation of further charge, etc.[Enclose copy of related sanction letter(s)/agreement(s).]

(b) In case internal accruals are taken as source of finance, explain basis justifying the availability of internal accruals, by means of suitable statement.

(c) List of shareholders owning or controlling 5% or more equity shares indicating the amount owned and business relationship, if any, with the Company.

10. In case of a new Company details as at 9 (c) may be given in respect of the Promoter Company.

11. Organisational set-up of the applicant company alongwith the list of key personnel already appointed, giving their designation, educational qualification and past experience and also minimum qualification/experience expected for other key positions proposed to be filled in. Indicate time when key personnel will be in position. In case of new company give write up on organisational set up during construction stage and operational stage.

12. Brief details on the other capital expenditure programmes (proposed to be taken up in next 3 years) of the Company/Promoter Company.

13. Marketing and Selling arrangements;

(i) In case of a generation company, furnish details of arrangements proposed for sale of power, viz. Sale to SEB/captive consumption/direct sale to dedicated consumers/sale to distribution company/any other arrangements.

(ii) In case of a distribution company, strategy adopted/proposed for sale/distribution of the power.

(iii) Entity’s assessment on demand and supply scenario the licensed area for next 10 years.

(iv) In case the applicant company proposes to sale directly to consumers, details of the consumer profile and their likely power requirement/captive consumption, metering arrangements etc.,

(v) Details of the mechanism and the basis followed/to be followed for fixation/revision of tariff-rates including fuel surcharge and realisation of dues for sale of power.

(vi) In case applicant is an existing company, give :- Consumer category-wise as well as age-wise analysis of amount in default

as on date of last balance sheet. Sale (quantity and value) to each category of consumers during last 3

years. Trends in tariff rates during last 5 years.

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Annexure A


Particulars About the company/promoter company/associate companies of the promoters

1. Name

2. Year of Incorporation

3. Nature of activity

4. Project promoters and equity stake Name of the Company

Equity amount (Rs. Crs.)

Equity (%)

Equity already brought in (Rs. Crs.)

Industry of Operation

Whether foreign company

Details of the parentage of the company along with audited annual accounts for the last four years.

5. Company information

This information is required for all the entities being evaluated as promoters

Audited annual accounts for the last five years and projections for the next two years containing the following information

Profit & Loss Account T-4 T-3 T-2 T-1 T T+1 T+2Operating IncomeNon-operating and other incomeInterest on long term loansInterest on short term loans and other finance chargesDepreciation Tax PATDividend - Equity

Note :

T-4,T-3,T-2,T-1 represent figs for the last 4 years.T+1,T+2 represent projections for the next two years.T represent latest years figs.

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Balance Sheet T-4 T-3 T-2 T-1 T T+1 T+2Cash and Bank BalancesCurrent AssetsCapital Work in ProgressEquity Share CapitalReserves and surpluses Revaluation ReservesIntangible assetsLoss brought forwardLong term loansWC loans from Banks and other short term loansOther short term loansOther current liabilities and provisionsRepayment of Long term loansMarketable securitiesOther investmentsContingent liabilities

6. Other business information pertaining to the company

1. Market Capitalisation : Movement of share prices in the past six months.2. Interest rate on borrowings various sources.3. Division wise turnover of the company for the latest year.4. Details of funds raised in various markets both equity as well as debt for the

last 10 years by the company/group.

Date amount Nature of instrument Interest rate if applicable

Investors Purpose

7. Details of projects promoted by the company/group in the last 10 years

Year of implementation

Nature of project

Project cost

Project cost overrun

Implementation time

Status of the project

Core/ non core

8. Any other source of equity raising potential apart from marketable securities, cash surpluses or debt on its books alongwith details of the source.

9. Project Experience Information

Relevant Experience in power A detailed write-up on power sector experience of the various entities contributing equity to the project.

No. of projects in core sector over Rs. 100Crs. or half the size of the project, which ever amount is lesser.

Details on project set up by the various entities contributing equity to the project *

No. of projects in non-core sector over Rs. 100 Crs. or half the size of the project, which ever amount is lesser.Experience in Developing Countries Experience of various entities contributing

equity in setting up projects in Developing Indian Experience

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countries and India.

10. Managing power plants

Megawatt Captive/ IPP Fuel used No.of years.

11. Managing Distribution

Area of coverage No. of consumers serviced

Amount of power distributed

No. of years

12. Details of projects set-up in India/and other developing countries.

Type of project

Project size Project location

Stage of completion

Business

13. Projects in core/non-core sector

Year of implementation

Nature of Project

Project Cost

Implementation time

Status of the project

14. Management Evaluation

1. Management experience :Of promoters CompaniesOf other group Companies

2. Curriculum Vitae of the main promoting directors with details of educational qualification, work experience and experience in managing project implementation etc.

3. Write up on business and financial policy of the promoting companies.

15. Evaluation of foreign companies

Rating of the company by Standard and Poor’s, Moody’s or Fitch

Foreign companies to give information regarding past financials, project experience evaluation and management risk evaluation only.

Other information requirements :-

1. Maturity profile of long term loans.2. Cash flow projections for next 2 years of the promoter companies in case of

Indian promoters only.3. Write up on market condition in the present business and synergies with the

new project.4. Write up on Commitment of foreign promoters and past track record of

investment in India and other developing countries.5. Status of financial closure of the project.6. DSCR for the last year as certified by auditors.

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16. Past performance of borrower

16.1 - Status of PFC loan : Total Amount Sanctioned Rs…………..(Upto Date / /) Amount Disbursed Rs…………. (Upto Date / / ) Loans (Outstanding) Rs…………. (Upto Date / / ) Default (If any) Rs…………..(Since Date / /) Rescheduling (If any) Rs. …………(Since Date / /) % Loan Disbursed to sanction ___________%[Scheme-wise loan amount sanctioned and disbursed may be given as Annexure]

16.2 -Status of loans from other sources Total Amount Sanctioned Rs……………..(Upto Date / / ) Amount Disbursed Rs…………….(Upto Date / /) Loans (Outstanding) Rs……………(Upto Date / /) Default (If any) at the time of Consideration of loan proposal Rs. ……….(Since Date / /) % of PFC loan to total loan

sanctioned_________%

17. Name and address of the main Bankers having business dealings alongwith the copy of letter addressed to the Bankers as per Annexure “E” for making inquiries.

18. Present and proposed shareholding pattern in the applicant company.

19. Credit rating, if any, obtained, in the past; Name of the Credit Rating Institution. Credit rating given, purpose and date.

(Enclose copy of the letter of credit rating institution)

Note :

(a) Enclose copy of the audited balance sheet and P&L account for the latest 4 years. Also enclose proforma balance sheet and Profit & Loss statement of the applicant company/promoter company, as recent as available.

(b) In case applicant is an existing company, also give;- In case the assets have been revalued at any time during the existence of

the company, furnish full details of such revaluation together with reasons thereof.

- Details of pending litigation by or against the company with amount in dispute exceeding Rs. 25 lakhs or having bearing on the operations of the company.

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Annexure – B

Application form for financing

Particulars of Directors/Promoters

1. Name ____________________

2. Age ____________________

3. Educational Qualification ____________________

4. Past industrial/ business experience (Give details)

____________________

5. Name of associate concerns/ companies alongwith the brief details of each. (As per Annexure “A”)

__________________________________________

6. Networth (certified by CA

firm)____________________

7. Copies of income tax/ wealth tax earning

____________________

8. Other credit supports ____________________

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Annexure – C

Letter of Authorisation to Banker

Date : _______________

The Manager,____________________________________________________________________________________________

(Name and address of the bankers to be inserted here)

Dear Sir,

We hereby authorise you to discuss with M/s Power Finance Corporation Limited, to which we are making an application for financial assistance, our affairs or any matter relating thereto, and to disclose such information as M/s Power Finance Corporation Limited may request to you or as you may consider fit to disclose.

Yours faithfully,

( ) Authorised Signatory

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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



Project Information - General

DATE (of application) :

1. Applicant/Implementing Agency : ( SEB/ IPP/ OTHERS ) Name of Agency : Name of Co-ordinator : Address :

: :

Phone No. : Fax No.:

2. Borrower's category & code : (Refer Annexure - 1)

3. Brief description of the formation of : the entity and its business fields. :

:

4. If IPP/Others, indicate status, Date of signing & major conditions of;

a. MOU with SEB/State Govt. :

b. PPA with SEB : (& Power purchased in MU) :

c. PPA with Third Party (& Power purchased in MU)

i. Name : Address : :

ii. Name : Address : :

5. Name of the Project/ Scheme : :

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

7. Location of Project a. Place, Town : b. District, State : c. Nearest Railway Station : d. Nearest National Highway :

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8. Brief Scope of proposed Project :

9. a) Estimated Project Cost (proposed) : (Base month/year)

b) CEA Cleared Cost : (Base month/year)

c) Estimated Completion Cost i. Without IDC : ii. With IDC : (As per summary Cost estimate) d) Cost/ Date of EPC contract

e) Period of Completion :

f) Date of start :

g) Date of re-start (If applicable) : with reasons for hold-up.

10.a) Expenditure Incurred : (Upto the date of application) b) Phasing of Expenditure

Sources (Rs. Crores) Year of start \ Equity Loan-1 Loan-2 Other

1st year (199 -9 ) 2nd year (199 -9 ) 3rd year (199 -9 ) 4th year (199 -9 ) 5th year (199 -9 ) -------- --------

11. Status of Statutory Clearances (with Dates & conditions as applicable)

a. Board :

b. State Government :

c. CEA Techno-Economic Clearance i) with conditions : ii) without conditions :

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d. Planning Commission :

e. Gazette Notification/ Local news : paper publication (u/s 29 of ES Act)

f. Pollution clearances (Water & Air) i) MOEF/CPCB : ii) State PCB :

g. Forest i) MOEF :

ii) State Government :

h. Civil Aviation Clearance :

i. Any other :

12. Status of Land Acquisition

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. :

b. Date of Start of Civil Works. :

c. Date of Completion :

d. Date of Commercial operation. :

e. Execution by self/ EPC contractor : ( If EPC contractor, indicate whether equipment manufacturer?)

f. Consultant(s) appointed Area of (Engg./Project Mgmt etc.) Name specialisation

g. O&M Agency :

h. Number of Packages identified. i) Equipment & Services : ii) Service Contracts : iii) Construction Contracts :

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14.a Describe procurement procedure in : brief followed/ to be followed for obtaining efficiency & economy in purchase.

14.b Status of Procurement :

Sl. Item/Package Ordered Name of Date of Value No. (Identified) (Yes/No) Supplier Award (Rs.Lacs)

[(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) :

levelised over life of the project : (indicate PLF, life, Discount rate &Year for which calculated)

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

16. Estimated Sale Price of Generation : (Rs/Kwh) at busbar/ any other point (specify)

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


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


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


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 NOTESURBAN DISTRIBUTION (PART - IIb)

1. Part - IIb consists of the information specific to Urban Distribution Project including Importance/ need of the Project, existing system and its inadequacies alongwith scope of work, Technical specifications, project selection, benefit, cost, financial return and areas of concerns.

2. Furnish details of existing distribution lines & sub-stations, if proposal is for strenthening work.

3. Furnish past operating performance data in case of SCADA/ Communication & Distribution Automation project or System Improvement scheme.

4. Furnish detailed technical specification for equipment already procured/ finalised for procurement while defining proposed Scope of work.

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

6. 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.

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

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

9. Provide list of all Documents/ Enclosures Attached.

APPLICATION FORM FOR FINANCING(Preliminary)

Project Information - Specific

Urban Distribution System-Improvment & Strengthing

1. Importance of the city or : ________________________________ town proposed and its ________________________________ population as per the 1991 census.

2. Existing system setup and : ________________________________ the inadequacies of the ________________________________ system to meet the propo- ________________________________ sed load in brief.

3. Give in brief objective, : need and justification of the project

4. Load forecast :

-Basis of load projection. -Demand in horizon year of planning.

5. Brief scope of works. :

-New lines proposed with ________________________________ length and voltage level ________________________________

-New substations proposed ________________________________ with nos. and capacity ________________________________

-Augmentation of existing ________________________________ (a) Lines ________________________________ (b) Substations ________________________________

-Capacitor banks ________________________________

-Meters for feeders and ________________________________ consumer.

-Communication and Load ________________________________ management tools.

-Any other works ________________________________

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6. Status of land acquisition : ________________________________ for s/s and right of way ________________________________ for lines to be erected. ________________________________

7. Indicate whether the pro- ________________________________ posed solution found to be ________________________________ least cost solution after ________________________________ examining various alterna- tives.

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

9. Indicate assumptions made : for calculation of FIRR

- Sale price of energy - O&M Cost

- Project cost estimate- Exchange Rate used- Depriciation- Any Other

10. Project Benefits and the : expected improvement with the project.(Both tangible and intangible)

11. Major areas of concern :

12. Give Any other information: pertaining to the project

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ANNEXURE

BREAKUP OF PROJECT COST ESTIMATE


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

1.1 Civil Works

1.2 Distribution Line & S/S

1.2A Lines A1 132KV(110KV) New lines A2 66KV (33KV) New lines A3 22KV (11KV) New lines A4 L.T. New lines A5 132KV(110KV)-Augumentation A6 66KV (33KV) -Augumentation A7 22KV (11KV) -Augumentation A8 L.T. -Augumentation A9 Erection /Stringing A10 Taxes & Duties A11 Freight & Insurance

1.2B Sub-station(capacity) B1 Transmission -Augumentation B2 Subtransmission-Augumentation B3 Distribution -Augumentation B4 Transmission -Augumentation B5 Subtransmission-Augumentation B6 Distribution -Augumentation B7 Erection B8 Taxes & Duties B9 Freight & Insurance

1.2C Capacitor Banks

1.2D Meters

1.2E Communication

1.2F Any Other

Sub Total (1.2)

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ANNEXURE

BREAKUP OF PROJECT COST ESTIMATE


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

1.3 O.H. & Administration :

1.4 ContingencyPhysicalPrice

Project Cost (exc. IDC)

1.5 Interest During Construction

TOTAL PROJECT COST

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APP: TH-R&M (PART -IIb)

Page 0 of 8

PFC : PROJECTS DIV: July-97