Equity Funding and Strategic Update
Glossary of Select Terms
Accelerated Depreciation - Accelerated depreciation can be elected at the project level, such that projects that reach COD in the first half of the fiscal year can expense 100% of eligible project
costs in year 1, and otherwise can expense 50% of project costs in year 1 and the remainder thereafter. After March 31, 2017, projects that reach COD in the first half of the fiscal year will be
eligible to expense 60% of project costs in fiscal year 1
Balance of System (BOS) – The non-module costs of a solar system
Committed Projects - Solar power plants that are allotted, have signed PPAs, or are under construction but not commissioned
Contracted Projects - Solar power plants that have signed PPAs, or are under-construction but not commissioned.
Day Sales Outstanding (DSO)- Days Sales Outstanding (DSO):
Outstanding amount+Period
Total Sales for the period
DSO
represents the average no of days taken to recognize the revenue against sale of power
Cash Flow to Equity (CFe) - Adjusted EBITDA less cash interest expense, cash taxes, normalized debt amortization over 20 years and maintenance capex but excludes the impact from corporate
debt servicing, changes in working capital or cash traps related to lender covenants
Levelized Cost of Energy (LCOE) - A cost metric used to compare energy alternatives, which incorporates both upfront and ongoing costs and measures the full cost burden on a per unit basis
Ministry of New and Renewable Energy (MNRE) A Government of India ministry whose broad aim is to develop and deploy new and renewable energy to supplement India's energy
requirements
National Operating Control Center (NOCC) – Azure Power's centralized operations monitoring center that allows real-time project performance monitoring and rapid response
Power Purchase Agreement (PPA) shall mean the Power Purchase Agreement signed between off-taker and the Company for procurement of contracted capacity of solar power
Renewable Purchase Obligations (RPO) - Requirements specified by State Electricity Regulatory Commissions (SERCs) as mandated by the National Tariff Policy 2006 obligating distribution
companies to procure solar energy by offering preferential tariffs.
Safe Guard Duty (SGD) - a tax on imported modules from most countries outside India which is 15% from January 30, 2020, to July 29, 2020.
Section 80-IA Tax Holiday - A tax holiday available for ten consecutive years out of fifteen years beginning from the year Azure Power generates power, for the projects commissioned on or before
April 01, 2017.
Solar Auction Process - A reverse bidding process, in which participating developers bid for solar projects by quoting their required tariffs per kilowatt hour, or their required VGF in order to
deliver certain tariffs. Projects are allocated to the bidders starting from the lowest bidder, until the total auctioned capacity is reached
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