Don't think I am joking, it's possible, very much possible !! Here I show how you can set up a power plant without a single paisa investment from your side !!
Say the cost of setting of the power plant is Rs. 100 crores which is to be financed by 30 equity and 70 debt, i.e., 30 crores equity funding and 70 crores loans from banks. As we know, 80% (i.e., 80 cr.) of the cost of a power plant project is in its EPC (Engineering, Procurement & Construction). So, we have to find a EPC contractor such as BHEL, L&T or other small players. Its better to zero-in a small player EPC. Now, we ask the EPC firm to suggest a 25% higher bill, i.e., 100 cr. and we show the banks the quotation of EPC firm and say that the total project cost is Rs. 143 cr.. Banks will give us 70% (i.e., Rs. 100 cr.) of the amount as debt. Afterwards, we receive back the extra Rs. 20 cr. from the EPC firm and use it for other expenses of the power plant... Finally, we have our power plant with no investment from our side !!
As exciting as this may appear, let me warn you, legally, its illegal. But, not to name, many small power plant projects are setup in this way...believe it or not !!
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