Q 13 &

Year -3 -2 -1 1 2 3 4 5 6 7 8 9 10 11 12 beyond 14 15 16 17 18 19 20 21 22 23 24 25
Capex outlay (Rs. Crore) in Yr
Volumes (MMSCMD)
Opex (As percent of Capex) 3% Yearly Opex escalates on account of inflation on Y to Y basis till end of economic life by 5%
Year 9 assumes induction of a gas compressor requiring additional opex towards operations, repairs & maintenance as %age of Capex 5%
Depreciation Rates (Straight Line method)
Pipeline 3.17%
SCADA & Telecom 4.75%
Building 3.34%
Others 6.75%
Compressors 5.28%
Depreciation is calculated till asset reaches 95% of value and salvage value is equal to the WDV of asset value at the end of economic life (25 years). Assume initial capex break-up as 85% on steel pipeline, 5% on SCADA, 1% on Buildings, 9% on others.
Discount rate 12%
Conversion Factor 1 MMBtu=29.65 SCM
Ans
Year -3 -2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Volumes
Capex Outflows
Opex Outflows
Cumulative Capex
Break-up of Capex
85% Pipe
5% SCADA
1% Buildings
9% Others
Compressor
Opening Gross Block of Assets for dep
Pipe
SCADA
Buildings
Others
Compressor
Additions during the Year
Pipe
SCADA
Buildings
Others
Compressor
Depreciation on Op Gross Block
3.17% Pipe
4.75% SCADA
3.34% Buildings
6.75% Others
5.28% Compressors
Depreciation on Additions (Assuming in beginning of the year)
3.17% Pipe
4.75% SCADA
3.34% Buildings
6.75% Others
5.28% Compressors
Total Depreciation for the Year
Pipe
SCADA
Buildings
Others
Compressors
Closing Block of Assets (GB less Dep)
Pipe
SCADA
Buildings
Others
Compressors
Salvage Value (Project Inflow)
Percentage of Opening Block
Pipe
SCADA
Buildings
Others
Compressors
PBT
Revenues (Tariffs)
Operating Cost
Depreciation
PBT
Tax
PAT
PIRR
Inflows (PAT+Dep)
Salvage Value
Capex Outflows
Opex Outflows
Sum of cash flows
Rate of Return 12% Rs./ SCM Rs./ MMBtu $/ MMBtu
NPV 0.00 Natural Gas Pipeline Tariff 0.00 1 SCM= 29.65 MMBtu 0 45 ($/ Re. Exchange Rate)