Project Cost (indicative) for a 2000 LPD BMC
1) Machines and pipe - ~INR 5 lacs
2) DG set - ~INR 3 lacs
3) Other- ~INR 3 lacs
4) Total approximate upfront investment of ~INR 11 lacs

Project Evaluation Parameters
1) Project IRR: 17-19%
2) Equity IRR: 22-26%
3) Other- ~INR 3 lacs
4) Payback period: 08-10 years

Assumptions
1) Cost of land is not considered
2) The cooler runs for 365 days
3) The capacity of BMC is 2000 LPD (litres per day)
4) The asset is depreciated at a rate of 5%
5) 80% utilization at steady state operations
6) 80% project financed through debt
7) Rate of interest in market ~9%
8) Working capital requirements are minimal

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