GENERAL INSTRUCTIONS TO THE  PRIVATE INVESTORS

1. The applicants are advised to go through the guidelines and evaluation criteria before filling     the  application form.

2. An Index should be placed immediately before the application format indicating sequence of the  documents attached with the proposal.

3. Proposal file should be page numbered and its binding  should be properly done. The applicant should ensure that the pages are duly stamped and signed  by the  authorized person.

4. Resolution of board of directors regarding authorized signatory be put immediately after application format.

5. Following details of company/Directors & promoters of the company are to be furnished with the proposal.

(i)     MOA & CIN

(ii)    DIN in present & all other companies.

(iii)   PAN in case of individual.

6.       Partnership Firm should be duly registered.

7. Evaluation shall be done strictly as per the terms and conditions given in the evaluation criteria  and based on the documents attached with the proposal. No negotiation shall be done with the applicants after submission of the proposal.

8. Technical capability shall not be considered for evaluation.

9. Proposal shall be submitted in sealed envelop and all the proposals will be opened after the last date for submission of the proposals.

10. No preference on “First Come” basis shall be given. Himachali applicant should specifically mention the name of Panchayat, district  against the relevant column in the application format alongwith proof thereof.

11. The requisite Certificates are to be submitted with the proposal otherwise preferential marks of Local Panchayat, Local District and to Himachalis shall not be awarded.

12. Telephone number of the authorized signatory should be mentioned in application form. Authenticated  proof of registered office of the applicant  is to be furnished with the application.

13. Application fee/Processing fee and EMD shall henceforth be submitted in shape of DD only, otherwise the proposal shall not be accepted.

14. Net Worth should be got calculated from the competent authority/ CA. Self evaluated property shall not be considered. The authenticated documents on the basis of which Net Worth has been calculated should also be attached with the proposal.

15. Separate proposal for each project accompanied with requisite fee  and all required documents is to be  submitted.

16. No separate letter will be sent to the unsuccessful applicant about rejection of his application. Only  the  list of successful applicants shall be displayed on Himurja website.

17. For submitting applications against self identified projects, applicants are advised to read carefully the instructions & other related terms & conditions as stipulated under Annexure-II.

18. Representation against rejection of application shall be made by the unsuccessful applicant to the Government/Himurja within 30 days of rejection, thereafter no request shall be entertained at all.

19. No applications will be entertained for district Kinnaur, Lahaul & Spiti, Pangi sub division of district Chamba and on Tirthan river & its tributaries in Kullu district.

20. Government reserve the right to cancel/reject all the applications without assigning any reason.

21. The application shall be submitted in sealed cover superscribed “Application for allotment of HIMURJA Hydro Electric Project/Self Identified Project” (Delete whichever is not applicable).

22. Application duly filled in alognwith requisite documents and EMD is to be submitted in the office of the Director, HIMURJA, SDA Complex, Kasumpti,  Shimla (H.P.)-171009 on or before 31/12/2010 upto 5 P.M.. In case, the last of the applications happen to be holiday, the application shall be received  till next working day.

 Contact Address:

Director,

HIMURJA (H.P. Govt. Energy Development Agency)

Block No. 8-A, SDA Complex, Kasumpti, Shimla (H.P.)-171009

Phone:- 0177-2621783

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SMALL HYDRO DEVELOPMENT PROGRAMME IN HIMACHAL PRADESH

 A) PRIVATE SECTOR PARTICIPATION

The State Government has taken several initiatives to encourage private sector participation in small hydro power development. Himachal Pradesh is among the few States, which has streamlined and is continuously refining the various procedures/processes to minimize the bottlenecks.

The process of exploitation of hydel potential in small hydro sector through private sector participation began during 1995-96. Since then, the allotment of project sites has been a continuous process. Till 31^st March, 2010, 509 Small hydro Electric Projects (upto  5MW  capacity) with an aggregate capacity of 1299 MW have been allotted. Out of these 29 projects with an aggregate capacity of 114.50 MW have been commissioned. A goal of 500 MW through Small Hydel Projects by the end of 2014 has been fixed.

B) PROJECTS TO BE OFFERED FOR PRIVATE SECTOR PARTICIPATION

Projects up to 5.00MW are handled by HIMURJA in following modes.

a)          Projects Identified by HIMURJA. 

b)     Projects Identified by the IPPs designated as self identified projects.

1. Small Hydro Project up to 2.00MW capacity shall be exclusively reserved for the Himachalis. Whereas while allotting projects upto 5.00 MW, Himachali shall be given extra  30 marks in addition to the marks obtained by them for financial strength.

2. Not more than 3 projects shall be allotted for implementation to an IPP including the already allotted projects.

PROJECTS NOW BEING OFFERED  FOR PRIVATE SECTOR PARTICIPATION   

The H. P. Government offers  projects sites  with potential upto 5.00 MW capacity for private     sector participation .The details are available under option "Project Offered for Allotment".

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C. GUIDELINES FOR PRIVATE INVESTORS

I) Any Private Investor such as Private Ltd. Company/Public Ltd. Company/Public Sector Undertakings/Partnership concern/Sole Proprietary/Himachalis/Co-operative Societies comprising of the bonafide Himachalis is eligible to apply for the investigation/execution of these Small Hydel Projects. 

II) The applications for the identified projects  shall be received after advertisements issued by Government/HIMURJA in Giriraj  and  in leading Newspapers. Applications shall be scrutinized by HIMURJA and approved by the Government. 

III) As the potential sites have been identified on the basis of preliminary reconnaissance only, the interested Private Investors should, in their own interest, visit the potential sites, (which are essentially the rivulets/streams on which the small hydro Projects can be developed), for verifying various Project related parameters viz. discharge, head, water availability, habitation etc.  They shall also ensure that the Project components do not fall in the wild life sanctuaries, national parks, eco protection zones etc. and also do not interfere / overlap with the existing/ ongoing/ proposed Hydel Projects of HPSEB, Government of India  undertakings, Private Investors, before submitting their offers on the prescribed format. 

IV) The application shall be accepted on the prescribed format and shall be complete accompanied  the application fee & requisite documents. The application shall include alongwith the application the information regarding, name of the stream/nallah, estimated capacity, assessed head and assessed design discharge, layout sketch of the Project which should show the elevations of the main components of the Project, names of the Projects already allotted upstream/downstream of the proposed site, if any etc.  Application with the same name as that of the Project already allotted upstream/ downstream can not   be accepted at the proposed site. The Joint inspection, in case of self identified projects shall be carried out to ascertain the overlapping, if any, with the existing Projects.

V) If IPP is interested to apply for more than one Project, separate application for each Project shall be submitted along with application fee.

VI) The application must be complete in all respects, supported with the requisite documents  accompanied with application fee/processing fee (Non refundable)  of Rs. 10,000/- ( Rs ten thousands only)  and EMD @ Rs.50,000/- only ( fifty thousands only) per MW, which is refundable in case of unsuccessful applicant and in case of successful applicant the same will be adjusted against the security deposit. The application fees/ processing fee and EMD shall be furnished by the  applicant in the shape of a demand draft  in favour of “Director HIMURJA” payable at Shimla. The application form is appended under option "Application Format". Financial appraisal of the application shall be done on the basis of  “Net Worth” of the applicant.

VII) (a)  For the projects upto 2 MW capacity the applicant should have Net Worth of Rs.10,00,000/ (Rs. ten lakh) per MW to become eligible for further processing of their application, failing which the proposal shall be rejected outrightly. Whereas for the projects above 2MW upto 5MW Net Worth of Rs.50.00 lakhs ( Rs. fifty lakh only) per MW shall be required by Himachali applicant to become eligible. After qualifying the eligibility criteria further assessment of marks shall be done as per the formula given in the evaluation criteria.

(b)  For Non Himachali Net Worth of Rs 200 lakhs (two hundred lakhs only) shall be required to become eligible for further processing the application, failing which the proposal shall be rejected out rightly. After qualifying the eligibility criteria further assessment of marks shall be done as per the formula given in the evaluation criteria.

VIII) If the project is approved  for allotment to a  particular  applicant,  consent letter for exclusive time bound right for preparation of Detailed Project Report  (DPR) for the Small Hydro Electric project shall be issued.

(Evaluation criteria is appended as Annexure-III)

IX)   After issuing the consent letter  the  IPP shall fulfill the following pre requisite criteria:

1.     PFR  FINALIZATION:

The IPP shall submit a comprehensive PFR to Himurja prepared by a reputed consultant  within  two months of issue of the consent letter alongwith the credentials of the consultant.  The PFR should include measurement & calculations so as to accurately establish  the  location of the  project features,  without changing allotted elevations, as well as  refining the design discharge leading to a proposed Installed Capacity, which can thereafter be firmed up during DPR preparation stage.

IPP will have to deposit security, processing fee, upfront premium based on the allotted capacity within two months.

Capacity enhancement changes in the DPR will be decided as per policy of the State Government as applicable from time to time.

2.     SECURITY (REFUNDABLE):

The Security charges shall be based on the capacity allotted. EMD @ Rs.50,000/- per MW furnished by the successful applicant while submission of application, will be adjusted against the security charges. If the IPP does not furnish the requisite documents such as PFR, upfront premium and post  allotment processing fee etc as prescribed in the consent letter in time, the project shall be cancelled and this amount will be forfeited. This amount will also be used as a performance guarantee for different milestones and adjusted against extension charges that may have become due and were not paid in case of cancellation of project at any stage.

In case TEC is accorded the above security will be refunded after signing of Implementation Agreement.

3.     PROCESSING FEE (NON-REFUNDABLE):

Furnishing of the Processing Fee (non-refundable) in shape of Demand Draft in favour of “Director, HIMURJA” payable at Shimla. The processing fee for  Himachali, Cooperative society/Company comprising of the  bonafide Himachalis shall be Rs. 25,000/- upto  2 MW and beyond  2.00 MW upto 5 MW @ Rs.25,000/- + Rs.10,000/- per MW for the capacity exceeding  2 MW. For others, the processing fee shall be Rs. 2.00 lac per Project.

4.     UP-FRONT PREMIUM (NON REFUNDABLE: 

Up-front premium ( non refundable), in shape of demand draft shall be charged as per Hydro Power Policy 2006 read with subsequent amendments notified from time to time. Presently upfront premium is charged at following rates:

i)     Upto 2MW  upfront premium is exempted.

ii)    Above 2MW upto 5MW -up-front premium  will be  charged in two stages @ Rs. 45000/- per MW at the time of allotment of the project i.e. within two months from the date of consent letter and balance up-front premium @ Rs.45000/- per MW at the time of signing of the IA. This will be without  any upper ceiling.

5.  The IPP or his agents shall carry out the requisite detailed investigations and  techno‑economic studies of the Project and shall submit a Detailed Project Report to HIMURJA within a period of 24 months from the date of issue of the consent letter.

6.     CAPACITY ADDITION:

 If the IPP enhances the capacity of the project at any stage then prior approval of the First Party will be mandatory for enhanced capacity and the IPP shall be required to furnish the capacity addition charges and up-front premium in following situations  at the rates notified by H.P. Government from time to time.

(i)      Upfront Premium:  On 20% increase over and above allotted capacity.

(ii)     Capacity Addition Charges: Beyond 20 % increase over and above allotted capacity.

(iii)    Free Power:  Additional 3 % royalty over and above the normal royalty/free power rates.

The IPP shall have to deposit processing fee afresh and deposit security charges for signing of Supplementary Implementation Agreement (SIA) on account of enhanced capacity at the rates applicable at the time of signing of SIA.

7       The IPP shall submit monthly discharge data and quarterly overall progress reports to Himurja on   the Proforma attached  with the consent letter.

8       Following milestones shall be binding on the IPP:-

9      The IPP shall stick to the time schedule for the investigation of the project and   submission of the DPR. In the event of the IPP being unable to submit the DPR within 24 months from the date of issuing the consent letter, the IPP can seek extension in time beyond 24 months for submission of DPR for valid reasons. Maximum  extension of 12 months shall be granted to the applicant for submission of DPR with extension fee @ Rs.. 10,000/- per MW per month . The extension fees shall be in favour of Director Himurja in shape of DD payable at Shimla. Request for extension in time period accompanied with extension fee should be given one month before expiry of stipulated time period or already extended period.

10           Detailed Project Report submission date shall be reckoned only after it has been found that the report is in conformity with CEA/ CWC guidelines and within allotted/approved elevations & stream. The reports and studies shall be prepared by reputed consultants who have experience of handling the complete task of geological & hydrological investigation, construction, erection, commissioning and operation of hydroelectric projects. Complete details of the consultants and their experience shall be included in the DPR or annexed therein.

11           HIMURJA, on the receipt of Detailed Project Report (DPR), will scrutinize the DPR from the angle of techno‑ economic viability of the project as well as optimum utilization of the potential. After its scrutiny the HIMURJA will forward the DPR to DOE for accordance of TEC. During examination of DPR HIMURJA/DOE may point out the defects and deficiencies affecting the techno‑economic viability. IPP is expected to make good the defects promptly and remove the defects or deficiencies, as pointed out by the Himurja/DOE, within 30 days from the dispatch of the communication. The applicant will obtain Techno Economic Clearance (TEC) from DOE within six months from the date of submission of DPR. Thereafter six months extension with extension fee @ Rs 10,000/-per MW per month will be granted. If the IPP fails to obtain the TEC within the extended time period, the consent shall stand withdrawn and the project shall be reverted back to Himurja.

12           If the force majeure such as war, civil war, riots, revolutions, fires, floods, epidemics, earthquakes, cloudbursts, landslides and excessive snow persists for continuous period of the consent letter or more, the parties shall meet and decide about the further course of action.

13           In case the IPP does not find the Project to be feasible from techno‑economic considerations or from any other aspect, the IPP shall hand over to the HIMURJA all the Project Reports and any other connected documents etc. as may have been collected and/or prepared by the IPP during the course of investigations.

14           The Government after having concluded that the Project is techno‑economically viable may enter into an Implementation Agreement with the IPP within a period of two months of according TEC or within 30 months after issue of consent letter (excluding extension if any) which ever is earlier.IPP will give request for signing of IA and deposit requisite charges for signing of IA for the execution of project on terms and conditions in accordance with H.P. Hydro Power Policy 2006 read with various amendments in it notified from time to time.

15           The IPP shall set up its office within State of Himachal Pradesh after signing of Implementation Agreement and furnish the proof thereof.

16           The IPP shall have to obtain the following NOCs/Clearances from different Departments and furnish the same at the time of submission of the Detailed Project Report or earlier: These NOCs / Clearances shall be issued by the concerned departments on the basis of consent letter after producing PFR by the project developer.

1.       NOC from I&PH & Revenue Department- stating that the proposed Projects does not infringe with the drinking and irrigation rights of the local inhabitants and of the ownership of traditional water mills i.e. Gharats.

2.       NOC from the Gram Panchayat through Panchayat Secretary.

3.       NOC from the Fisheries Department.

4.       NOC from HPPWD.

5.       NOC from Wild Life.

 For transfer of Forest /Govt. Land, Private Land acquisition and  PCB clearances concerned departments will accept the request of the power producer on production of approved feasibility Report (FR), approved DPR or TEC (whichever is earlier). IPP will submit feasibility Report within one year from the date of issue of consent letter  for approval to enable expediting these clearances. After obtaining the clearances from concerned Government department(s), Land lease has to be registered by the IPP with the revenue Department.

17           NOCs from different Departments shall be furnished in original to the HIMURJA. The IPP is required to furnish an affidavit, on Rs. 5/- stamp paper duly notarized, to the effect that all the conditions in the NOCs obtained from the different Departments and Gram Panchayat shall be abided by them, in case an IA is signed with the IPP later on. 

18           The  IPP will be acknowledge receipt of consent  letter  within one month and furnish affidavits, security charges, processing fee, upfront premium within two months from the date of issue of consent letter. In case, IPP’s confirmation is not received or security, processing fee and other relevant essential documents, not deposited by the due date it shall be presumed that IPP is  not interested in taking up the project and consent shall be treated as withdrawn.

19           Royalty:  In the event of this project being awarded to the IPP  for implementation, a separate agreement called Implementation Agreement shall be executed for supplying the royalty on water usages in shape of free power royalty (Energy) as per the following rates or the rates applicable as per policy of the State Govt. at the time of signing of Implementation Agreement.

i)        Royalty on water usage in respect of sale of power within the State (captive use or sale to HPSEB Ltd.), will be @ 6% in the shape of free power (energy) to the State from Small Hydro Electric projects upto 5MW capacity  for a period of 12 years reckoned after 30 months from the date of signing of IA of the Project or from the date till which extension in SCOD is granted by the First Party. Beyond 12 years, royalty shall be @ 15% for next 18 years and beyond that @ 24% for the remaining period of 10 years.

ii)      If the IPP makes captive use of Power outside the State or make third party sale, the above rates of royalty shall be 12%, 15% and 24% respectively reckoned after 30 months from the date of signing of IA of the Project or from the date till which extension in SCOD is granted by the First Party.

20.         TRANSFER OF PROJECT TO SUBSIDIARY GENERATING COMPANY.  

20.1   For Non-Himachalis:-  The Government may consider the request of the allottee company for change in name/dilution of shares of original allottee company subject to the condition  that the Original allottee shall retain the controlling interest i.e. 51% equity in the new entity upto two years after actual commissioning of the project and thereafter allowed to freely sell/divest the project. In the event of any contravention, the Government of H.P. shall terminate the IA forthwith at any stage. 

20.2 (a)   For Himachalis:  In case of bonafide Himachalis to whom Projects upto 5.00 MW capacity is allotted,   the Government may consider the request of promoters to sell equity shares to the bonafide Himachalis who have been living in Himachal Pradesh from generation to generation.   The Promoter(s) shall be allowed to sublet/transfer its right by way of merger, by way of change of management, by way of Power of Attorney, by transfer, lease, mortgage or any other such possible means accrued under the Memorandum of Understanding (MOU)/Implementation Agreement (IA) to any other Himachalis living in Himachal Pradesh from generation to generation or cooperative societies comprising of such Himachalis at any stage i.e. before and after commissioning of the Project so as to facilitate the execution of the project by taking technical or financial support from Cooperatives, Associations, NGOs, Companies, Individuals, Himachalis who have technical or financial means available to support the project(s).

20.2(b) Change in name/dilution of shares by Himachali allottee to non-Himachalis shall be allowed to the extent of 26% during construction period and full disinvestment after two years of actual commission date of the project.        

21    The IPP may use or sell the power in the following manner:

(a)     Sale to the HPSEB Ltd., for which the IPP and HPSEB Ltd. Shall enter into a mutual agreement.

(b)     Make captive use outside the State or make third party sale for which the IPP  shall enter into suitable agreement for transmission of power with concerned entities.

 22   Alongwith the acceptance letter of the consent, the following shall also be furnished by the    IPP:

“An affidavit on a stamp paper of Rs.5/-only ( duly notarized) to the effect  that not more

than three projects (including this project) are under execution with the   IPP in the State”.

23.   Other conditions of Hydro Power Policy 2006 read with amendments to same notified  from  time to time  shall be applicable.

24.     HIMURJA/ H.P. Government shall provide necessary assistance in obtaining   clearances at State level.

25.     The incentives/concessions offered by the MNRE/Himachal Pradesh Government would be applicable  as notified   from time to time.

26.     Escort Service shall be provided by HPSEB or HIMURJA, as the case may be.

27.     Consent letter will be issued in lieu of MOU and no separate MOU shall be signed  by the government.

Note:

(1)           The DPR shall clearly bring out the percentage potential utilization of the site and it would be preferable if the DPR demonstrates that the proposal shall lead to more than 75 % of the potential utilization of the site in a 75% dependable year.

(2)           Capacity firmed up in the DPR shall be treated as final, subject to approval from     Government in case of enhancement, for according TEC and signing of IA.

In case of default of any of the time frame and/or conditions of the consent letter, the Government shall be at liberty to withdraw the consent and forfeit the security and the project can thereafter be granted to other suitable party.

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ANNEXURE-II

REQUIREMENTS/GUIDELINES FOR SELF IDENTIFIED PROJECTS

To ensure proper identification of projects under self identified category and to avoid cascading of the projects& to make Small Hydro Electric projects more environment friendly, the  applicants are advised to meet the following minimum requirements/ guidelines before putting in an application for self identified project:

(i)       Applicants should clearly mention the following information in their project proposal to be attached with the application:

(a)     Coordinates of Weir site, Power House & and tailrace alongwith elevations.

(b)     Name of Stream(s).

(c)     Basin

(d)     Copy of Topo sheet indicating the coordinates & elevations

(e)     Elevations of upstream & downstream projects on the same stream, if any.

(ii)     Applicants should ensure minimum elevation difference of 50 mtrs or horizontal distance of 250 mtrs between two projects, depending upon the topography and terrain of the area to have visible flow of water in the original stream.

(iii)     Elevations should be fixed w.r.t. Survey of India bench mark or some authenticated reference point already established. Some sort of identification mark should be put at site and photographs of weir site and power house location should be attached with the proposal. Proposals submitted without photographs will be rejected.

(iv)   No proposal/application shall be accepted on the streams and elevations for which applications received in the past stand rejected (detail available on Himurja website) or which stand allotted to any other entity.

(v)     Applications for elevations & streams clashing with already allotted/identified or under investigation schemes either by Himurja/Directorate of Energy/HPSEB Ltd./by any other Government Agency are liable to be rejected and application fee shall stand forfeited. It will be the responsibility of the applicant to check with the record of concerned agency before putting in an application.

(vi)   All applications will be subjected to preliminary technical scrutiny by a committee from an environmental view point. Applications not found fit will liable to be rejected. In case of rejection of applications from environment point of view 50% of the application fee will be forfeited.

(vii)  No applications will be entertained for district Kinnaur, Lahaul & Spiti, Pangi sub division of district Chamba and on Tirthan river & its tributaries in Kullu district.

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 ANNEXURE-III

CRITERIA FOR EVALUATION OF SMALL HYDRO PROJECTS (0-5 MW)

As per existing Hydro Power Policy, Small Hydro Projects upto 2 MW capacity shall be exclusively reserved for the Himachalis and the Co-operative Societies /Firms/NGOs in which all the members are Himachalis. While allotting projects upto 5.00 MW, preference will be given to the Himachalis. If there are more than one Himachali (Applicant), preference shall be given to the person of the area, or the Distt. Not more than 3 projects including commissioned or under execution shall be allotted for implantation to an IPP.

The prospective investors are required to submit the details, especially in respect of the following aspects:

a)       Nature and status of applicant Company & its organizational set up.

b)       Subsidiary/parent Company, if any and the Associate Company along with Balance Sheets.

c)       Experience Details of applicant Company/entity.

d)       Financial details of applicant in case of individual /societies.

The processing of application of Private investors is to be done through a critical evaluation of financial, technical and local area and assessment of the firms previous track record in the implementation/development of Small Hydro Projects. The following marking pattern shall be followed:-

ILLUSTRATION OF (b) ABOVE:

If a Co-operative Society /Firms/ NGO/Company are promoted by the people of Local Panchayat /Local District and Other Himachalis, the marks are to be awarded by adding total marks of Local Panchayat / Local District/Other Himachalis, the marks shall be awarded on prorata basis. For example: if there are 6 persons in a Firm/ Society / NGO/company promoted by people of Himachalis i.e. 2 from local Gram Panchayat, 3 from Local District and I other Himachali , the marks shall be calculated/awarded as under:

(a)     2 from Local Gram Panchayat      =  2x30 = 60

(b)     3 from Local District                    = 3x20 =  60

(c)     1 from other Himachali                 = 1x 10 = 10

                                                ----------------------------

                                                 Total   =   130 Divided by total number of Persons

                                                                 130 = 21.67 marks

                                                                   6

                                                i.e 21.67 marks out of 30.

• Preference will be given to Himachali having better financial capability in case two or more Himachali applicants getting equal marks. 

• Preference will be given to Himachali in case Himachali and Non Himachali getting equal marks.

• Preference will be given to the Non Himachali having better financial capability than other non Himachalis, in case both non Himachali applicants getting equal marks.

• In case of individual, property of Parents/Grand Parents and other relatives shall not be considered for evaluation.

• NRI and its property outside the country shall not be considered.

• Property of Himachali applicant outside the State shall be considered for evaluation.

Proof in support of resident of Panchayat issued by Panchayat Secretary to be countersigned by BDO and District/Himachali by Executive Magistrate of the area of which applicant is a bonafide resident, should be attached with the application.

FINANCIAL EVALUATION:

 1.    The financial capability of the investors is to be assessed on the basis of Audited  Accounts/Published Accounts /un audited financial statements and net means in the case of individuals/cooperative societies/newly formed entities. The Balance sheets of the Private Investors pertaining to the last accounting period as supplied by the Private Investors because of variation in Accounting period or otherwise, is to taken into consideration.  

2.     In case of newly formed entities/ companies/ firms/ societies, if the above criteria is not fulfilled, the means of each member/promoter will be evaluated jointly for this purpose. The proof/ documents in support of the above shall be submitted by the individual/ promoters.

A Certificate from the Chartered Accountant regarding Net worth of the individual/societies/newly formed entities where Annual Accounts have not been prepared/drawn will be required.

3.   Weightage shall be assigned on the basis of financial standing of the promoters/of the parent company in the case of new entities. Prorata share of each partner/member shall be calculated as applicable.

4.   Since, financial strength is the Prime factor in execution of Projects; the following assumptions have been made:

1. The probable cost of the Project as per the market rate has been considered as Rs. 6 crore per MW.

2. The capacity of the project shall be considered for calculation of financial strength for qualification/ evaluation.

5.      DEFINITION OF FINANCIAL TERMS

   Following definitions have been adopted for different financial terms used in the evaluation of financial strength.

6.   Net worth calculation in the case of individual/Societies shall be based on following information:-

  Less:-

7.   Marks shall be allotted for screening/evaluating financial strength as follow:-

    (a)     For projects upto 2MW:

1. Minimum net worth of Rs. 10.00 lakh would be required to become eligible for evaluation.

2. The marks shall be awarded as per the following formula:-

                                Net worth x70

                                         600

       (b)    For projects above 2MW and upto 5MW

1. Minimum net worth of Rs.  50 lakh per MW for Himachali and Rs. 200 lakh per MW for non  Himachalis would be required to become eligible for evaluation.

2. The marks shall be awarded as per the following formula:-

                                Net worth x70

                                         600

Note:- The above criteria is for 1MW, which shall be further considered/computed/adjusted on prorata basis for various capacity of projects other than 1MW (Plus/Minus).

8.   Considerations relating to existing projects and application for more than one project

1. Net Worth of the applicant/developer shall be adjusted first against projects in hand/under implementation and only remaining portion shall be used for evaluation against fresh application.

2. In the case of projects applied is more than one, applicant/developer shall indicate priority of projects for allocation of financial strength for evaluation purpose.

Note:- The above is for information Only.