In this model of development, the end user of electricity invests their own money in setting up the Plant, and thus retain the asset on their balance sheet. Since the entire Capex (short form for Capital Expenditure) is undertaken by the end user, it’s called as Capex Model. The investment can be sourced from internal resources or financing through existing banking relationships. Argo Solar will undertake implementation of the Project in turnkey EPC mode with end to end services including statutory approvals. The key benefit of this model is maximum savings and option to avail accelerated depreciation on the Solar Plant assets @ 40% of the book value. Since the asset is owned by the end user, the variable cost of electricity is low (only maintenance costs) and thus the entire savings accrue to the end user. Since the asset is on the balance sheet of the end user, the end user can opt for Accelerated Depreciation @ 40%, as allowed under Income Tax rules, to avail tax benefits.