BIHAR INFRASTRUCTURE COMPANY PVT.LTD.

RFP Document's Received for Tariff based bidding from :

1. 2X 660 MW Coal Based Power Project Near Village Pirpainti,Dist Bhagalpur in Bihar (BOO).

2. 2 X 660 MW Coal Based Power Project near Village Chausa Dist. Buxar in Bihar (BOO).

3. 2X 660 MW Coal Based Power Project near village Kajra,Dist Lakhirai in Bihar (BOO).

Seller shall be

1. Pirapainti Bijlee Company Pvt.Ltd.2. Buxar Bijlee Company Pvt.Ltd3. Lakhisarai Bijlee Company Pvt.Ltd.

Requirement:

Description Pirapainti Bijlee Buxar Lakhisari Bijlee

Total required - 1170 Acres Total required - 1085 Acres Total required - 1200 Acres Private land - 988.33Acres Private land - 1041.73Acres Private land - 1018.22AcresGovt.Land - 181.67 Acres Govt.Land - 43.67 Acres Govt.Land - 181.78 Acres

Source - River Ganges , Source - River Ganges , Source - River Ganges , Requirment - 55 Cusec Requirment - 55 Cusec Requirment - 55 CusecDistance - 10 km Distance - 5 km Distance - 14 km

Source - Jharkhand Mines Source - Jharkhand Mines Source - Jharkhand Minesown your wagon scheme own your wagon scheme own your wagon scheme Requirment - 6.25.Million Tonne Requirment - 6.25.Million Tonne Requirment - 6.25.Million Tonne

400 KV BSEB Kathihar grid 400KV Arrah Grid SS,Bhojpur in Bihar Patna Grid substationconstruction of 2 numbers 400 KV construction of 2 numbers 400 KV construction of 2 numbers 400 KV double circuit twin moose transimission double circuit twin moose transimission double circuit twin moose transimissionlines from project to delivaery point lines from project to delivaery point lines from project to delivaery point

132 KV Kahalgaon SS of BSEB in 132 KV Dumroan SS of BSEB in 132 KV Lakhisarai SS of BSEB Bhagalpur Dist, Buxar Dist.

Power Evacuation

Start up Power (Seller)

Land

Water

Fuel

Clearances already Obtained1. Rapid Environment impact study 2. Water Linkage 3. Airport Authority Clearance – NOC for

275 M Chimney.4. Public Hearing 5. Pollution control board6. Coal linkage is approved for Buxar ,for

Pirapainti and lakhisarai it is under progress.(Our Responsibility).

Dates and Schedules :

1. Pre- Bid Conference is on 30th September 2011.2. Bid Submission and opening of non financial bid

12th December 2011.3. Opening of Financial bid 29th December 2012.4. A bid security bond of Rs. 33.75 Crore for one

project, so total amount Rs. 101.25 Crore.5. Total project schedule is for 41 months for all

the 3 projects from the date of award, and sub sequent unit will be 4 months thereafter (45 Months).

Location : Lukeesarai

Location : Buxar

Location : Pirpainti

Cost of Land and fuel:

Description Pirapainti Buxar Lakhisarai

Land Rs.0.70 Million per Acre

Rs.0.55 Million per Acre

Rs.0.60 Million per Acre

Fuel (Coal) Rs.1100 per MT Rs.1100 per MT Rs.1100 per MT

GCV of coal 3300 Kcal/Kg 3300 Kcal/Kg 3300 Kcal/Kg

Cost of Transmission lines ,Railway line, Flue gas Desulphurization

Not Included Not Included Not Included

** Ash content in coal : 43% PLF : 85%

Power Purchase Agreement:

1. The procurer plans to procure contracted capacity of 1125 MW at the delivery point as per the terms of PPA.

2. Out of 1320 MW ,100 MW will be for Auxiliary consumption .

3. As per PPA only 1125 will be utilized so an additional (Surplus)95 MW can sold to third Party.

Extent of Land Requirement:

Description Pirpainti Buxar Lakhisarai(Kajra)

Power Block area 180 Acre 180 Acre 180 Acre

Raw water reservoir, all water systems including cooling towers

205 Acre 205 Acre 205 Acre

Ash Bund 365 Acre 365 Acre 365 Acre

CHS in plant 210 Acre 210 Acre 210 Acre

Land for other Facilities

40 Acre 50 Acre 73 Acre

Green Belt 325 Acre 317 Acre 343 Acre

Housing colony 85 Acre 85 Acre 85 Acre

Total 1325 Acres 1412 Acres 1461 Acres

Summary of Project Financing:

Description Pirpainti Buxar Lakhisarai

Total Project Cost Rs.68205.02 MLR

Rs.68101.04 MLR

Rs.67913.67 MLR

Of which Of which Of which

Land cost 1111.50 976.00 876.60

Plant Cost (with taxes & Duties)

54836.91 54880.73 54819.14

Prelim & Pre Operative cost

3325.11 3326.42 3324.57

Interest During Construction

8692.79 8679.54 8655.66

Margin money for WCapital

0.00 0.00 0.00

Financing Charges

238.72 238.35 237.70

Financial Analysis:

Debt – Equity Ratio: 70:30 Interest on loan : 11.5 % p.a Interest on working capital : 12% p.a Repayment period : 10 Years Moratorium : 1 year Design life : 25 Years P.L.F : 80 % ; However, its mentioned 85 % else where Auxiliary consumption : 7.5% Plant heat rate : 2150 Kcal /KWh GCV of coal : 3300 Kcal/Kg Cost of coal : Rs. 1100 MT Escalation in fuel cost : 4 % p.a Quantity of secondary coal : 2 ml/ kWh Cost of Secondary fuel : Rs 35/Litre Return on equity : 14% pa Depreciation : 4% p.a on Straight Line Method Operation & Maintenance cost : Rs.12.81 lacs / MW Escalation on O&M : 4%

Conclusion

As per the above project details it is understood that the investment in almost Rs.204219.73 Million out of which considering the 70-30 Equity Ratio a total amount of Rs.61265.919 Million should MPL investment.

Plenty of ROW issues has to be done by MPL as a EPC contractor once the award of contract.

As per the bid documents only for BUXAR Thermal Power Project the Procurer has taken the responsibility for obtaining the FSA has been initiated.

For other 2 projects the responsibility for FSA is under Procures scope.