Cut-off:

Having calculated the payback, it is time to compare it with the target or benchmark payback as decided through approving/sanctioning authorities in below diagram

Figure: Comparison with Benchmark Payback

This is how the total payback computation cycle works.

Based on this exercise the schemes may have to be suitably optimized to come to acceptable levels of payback period that is normally less than five years or so, beyond which would require extraordinary justifications for funding the DPR on bankable terms.

In DPR models explained above, most concepts might sound quite complex. In the years to come, all the stakeholders have to get into the performance net in the regulatory regime. The skill and competency lies in drawing up the "DPR Specifications" along with clarity about equipment quality, system performance timely delivery, and its bankability.