Is there a government guaranteed IRR (Initial Rate of Return) for the power plants?

the Generation Tariff Order (effective from 1st June 2012 till 31st May 2017) clearly notes that while the Risk Free Rate is 18%, the nominal return on Equity is 29%. Please note that the Order is based on certain assumptions which are quite conservative as well. Your actual return will depend on your acquisition cost, O&M costs, efficiency among others.

Please go through the Tariff Order which can also be downloaded from

Posted in: Commercial Matters