SECTION 7.0
Finance Costs
Project financing provisions including bank guarantees, insurance, working capital, taxes, and contingency allowances.
Total Finance & Contingency Costs
₹ 49.93 Cr
6.1 Finance Cost Breakdown
| # | Item | Amount (₹ Cr) |
|---|---|---|
| 1 | Bank Guarantee (Performance + Advance) | 4.50 |
| 2 | Insurance (CAR + Marine + Transit) | 3.50 |
| 3 | Working Capital Interest | 3.00 |
| 4 | Mobilization & Demobilization | 2.50 |
| 5 | Contingency | 36.43 |
| TOTAL FINANCE COSTS | 49.93 |
6.2 Proposed Payment Terms
| Milestone | % of Contract | Trigger |
|---|---|---|
| Advance Payment | 10% | Against bank guarantee, within 30 days of LOA |
| Engineering Milestones | 15% | Progressive billing against engineering deliverables |
| Equipment Procurement | 45% | Against proof of dispatch / delivery at site |
| Construction Progress | 20% | Monthly progress billing based on physical progress |
| Commissioning & PG Test | 5% | Upon successful completion of performance guarantee test |
| Retention (Released after DLP) | 5% | Released after 12-month defect liability period |
Key Assumptions
1. GST is estimated at prevailing rates and will be charged extra as applicable at the time of billing.
2. Foreign exchange rate for imported items is assumed at USD 1 = INR 83. Any variation beyond ±3% will be adjusted.
3. Price escalation clause applies for orders placed beyond 12 months from the date of proposal.
4. Customs duty exemption, if available under project import scheme, will be passed on to the client.