ONGC's foray into solar power-II: Goa likely best option

A financial analysis by ONGC`s project appraisal section (PAS) for selection of a suitable site for installation of ONGC`s maiden solar venture has indicated that selection of a site in Goa is likely to offer the highest internal rate of return (IRR) to the public sector hydrocarbon major.On the other hand, Rajasthan is likely to offer the least profits to the company.

Following are the results of the analysis of the solar project with respect to all three prospective states-- Goa, Gujarat and Rajasthan:

 Goa with CERC tariff with accelerated depreciation

 Revenue: Rs 515.42 crore; NPV: Rs 43.01 crore; IRR: 20.74%.

Goa with CERC tariff, but without accelerated depreciation 

 Revenue: Rs 617.48 crore; NPV: Rs 46.31 crore; IRR: 19.16%.
Gujarat with CERC tariff with accelerated depreciation
 Revenue: Rs 463.71 crore; NPV: Rs 28.03 crore; IRR: 17.74%.
 Gujarat with state tariff policy with accelerated depreciation 
 Revenue: Rs 312.56 crore; NPV: Rs 15.50 crore; IRR: 16.03 %.
 Rajasthan with CERC tariff with accelerated depreciation
 Revenue: Rs 464.63 crore; NPV: Rs 28.28 crore; IRR: 17.79%.
 Rajasthan with CERC tariff without accelerated depreciation
 Revenue: Rs 556.62 crore; NPV: Rs 28.66 crore; IRR: 16.45%.
 Rajasthan with state tariff policy with accelerated depreciation 
 Revenue: Rs 409.93 crore; NPV: Rs 12.11 crore; IRR: 14.57%.
 Rajasthan with state tariff policy without accelerated depreciation 
 Revenue: Rs 484 crore; NPV: Rs 5.62 crore; IRR: 12.82%.