1. Name of the start-up: P&R Infraprojects Limited 2. Product/Service: Hydro-Power generation. 3.

Customer: Government of J&K (Jammu & Kashmir Power Development Department) 4. Plant Details: Location: Brenwaar, Kashmir, J&K. India

River: Doodh Ganga Headquarters: Chandigarh, India Site Identification: 2005 Construction begins: 2007 Commissioning: 2009 Plant Capacity: 7.5 Megawatts (MW) Type of plant: Run-off the river; no damming; high head, low discharge, pelton turbine. Length of Penstock: 3500 m Net Head: 225 m Discharge (flow): 1.5 cubic metres Cost of construction: INR 500 million Average annual generation: 20 million units. (1 unit= 1 Kwh) Number of generating units: 3 (2.5 MWx3=7.5MW) Maximum Capacity: 7.5 MW Minimum Capacity: 0.5 MW Plant efficiency: >93%

5. Financials: Average Tariff/unit: INR 3.00

Average Annual Revenue: INR 60 million Expected Break even: 2016-2017

6. Suppliers: Hunan Unisplendor M&C Ltd (China) 7. Scaling:Scaled up the plant from 5 MW to 7.5 MW 8. Expansion: 2 more plants of capacity 12 MW and other yet to determined planned on the same river. 9. Ownership Type: BOOT (Build-Own-Operate-transfer) lease for 40 years. Transferable to the Government of J&K. 10. Operations: Total number of Staff: 33

Number of Managerial Staff: 1 Number of Engineers: 4 (3 executive engineers, 1 plant engineer; all electrical engineers) Number of Turbine operators: 4 Number of D-Tank operators: 5 Number of Store-keepers: 1 Number of General employees: 2 Number of Security staff: 6 Number of labour: 10 Number of shifts: 3 (8 hrsx3= 24 hrs) Number of monthly offs/ employee= 4 Maintenence: self maintained

11. Analysis (reasons for success) Favourable Governmental Policies: The Hydro Policy in vogue in the state of Jammu and Kashmir is highly favourable to entrepreneurs. It allows for allotment of sites to developers (called as Independent Power producers or IPPs) through auction- a first for the state. This policy caps the upper limit of free power, or royalty, payable to government of J&K at 12%, levies no water tax for the first ten years, no taxes on machinery to be imported. Additionally, the government has a buy back agreement to purchase power from the IPP. The IPP may sell the power produced to any other utility within India, if it so wants, after paying the wheeling charges. The policy also grants financial assistance to the IPP: 10% of total capital, 3% interest reimbursement, by arrangement with financial institution, on working capital. This, is in addition to Central Government Financial Assistance.

Previous Experience: P&R Infrastructure is a infrastructural construction company and its main area of expertise lies in developing infrastructural projects, in particular power plants. When P&R diversified to hydro-power generation, it was familiar territory for the company. The fact that it took just two years to construct this power plant, and without delays or extension, is testimony to the advantage of previous experience. In particular, the expertise of the company in laying of penstocks is noteworthy. The previous projects undertaken by p&R, in IPP mode, are at Gogripur and at barkot. Additonally, the company has a wide experience in other areas of civil constructions. Sound Financial Health: The parent company (P&R) has a turnover of around US$ 20 million. Therefore, it had deep pockets to start the power project at Brenwaar. By itself, the power project at brenwaar is yet to reach break-even. However, it is expected to do so by 2017. Dismal power scenario in J&K: In the state of J&K, there is an imbalance of around 750 MW in favour of demand viz a viz the supply of power. Consequently, the government of J&K has to purchase power from Northern Grid at a much higher cost. To set this imbalnce right, the government has resolved to make it favourable to private entities to establish private power plants in the state. Therefore, it can be argued that this dismal power scenario has come as a blessing and an opportunity to companies/people interested in starting their ventures in Hydro power space. This opportunity was cashed in by P&R. Underutilization of water resources: The state of jammu and Kashmir has an identified potential of around 20000 MW. Out of this, only 10% has been tapped into. Therefore, it is clear that the government of J&K is desperate to judiciously and adequately utilize its water resources for hydro power generation to give a fillip to its economy. This opportunity was cashed in by P&R High Demand, high technical losses and therefore high tariffs: The electricity Transmission and distribution system within the state of Jammu and Kashmir is subject to high consumer demand and high transmission and distribution losses. Both of these factors, together, create a situation where the demand is high, supply is constant (there is an imbalance between supply and demand; demand exceeds supply) and the government has to purchase at a high per unit price to meet its consumer commitments. It is to be noted that the rate per unit is a strong function of demand and is dynamicaly allocated by a computer algorithm based on instantaneous demand on the grid.