It is likely to be changed in an economic climate (i.e. due to current interest rate and escalation rate in the prices of coal, maintenance, labour, insurance and pumping power).
Thus, the lifetime cost of coal or fuel, maintenance, labour, insurance and pumping power can be obtained in terms of PWF and the escalation rate following Li and Priddy (1985) as.
Logistics costs (C L ) are modelled for each commodity in terms of duration (C T ) and distance (C D ) as (3) C i, g, k L = C i T (2 L g, k τ v i + L U T i ) + C i D 2 L g, k τ The parameters in Equation 3 capture annualised capital, maintenance, labour and fuel costs and general overheads.
The high costs for equipment, maintenance and labour limit the number of sites that can be measured.
Fuel cost, maintenance, insurance, labour and pumping cost with escalation rates has been observed to be 4050.8, 747.68, 207.68, 272.3 and 119.06 INR crores, respectively.
With escalation, costs of fuel, maintenance, insurance, labour and pumping have been observed to be higher than the case without escalation.
The total fuel cost, maintenance, insurance, labour cost and pumping cost over the plant life increases with plant life, as expected.
In Fig. 7, the effect on lifetime cost components such as fuel, maintenance, insurance, labour and pumping has been plotted against plant life, which varies from 0 to 35 years with an interval of 5 years.
The effect of variation in the interest rate has been highlighted on accumulated lifetime total fuel cost, pumping cost, insurance and maintenance cost, labour cost, total capital investment, revenue and net present value as represented in Figs. 11 and 12.
The total operating cost, revenue earned, net present value of plant, costs of fuel, maintenance, insurance, labour and pumping with escalation rates have been observed to be higher than the case without escalation.
In Fig. 11, the effects on fuel, maintenance, insurance, labour and pumping costs have been plotted against the interest rate range from 9 to 15 % on an annual basis.
