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AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
  • 1. Shri Umesh Chandra ED(Comml.), PGCIL
  • 2. Shri V.K Prasher, ED(LD&C), PGCIL
  • 3. Shri Y.K Dixit, PGCIL
  • 4. Shri V. Srinivas, PGCIL
  • 5. Dr. L. Hari, PGCIL
  • 6. Shri A.K Sharma, PGCIL
  • 7. Shri U.K Tyagi, DGM, PGCIL
  • 8. Shri Ramesh Bahri, PGCIL
  • 9. Shri D.D Dayaseelan, PGCIL
  • 10. Shri P.C Pankaj, PGCIL
  • 11. Shri V.K Gupta, PGCIL
  • 12. Shri C. Kannan, PGCIL
  • 13. Shri V.C Jaganannathan, PGCIL
  • 14. Shri R.G Yadav, PGCIL
  • 15. Shri V.V Sharma, PGCIL
  • 16. Shri Samir Kumar, PGCIL
  • 17. Shri T.S.P Rao, PGCIL
Judges
  • Ashok Basu
  • Chairman
  • K.N Sinha
  • Member
  • Member
  • Bhanu Bhushan
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
  • 1. Shri Umesh Chandra ED(Comml.), PGCIL
  • 2. Shri V.K Prasher, ED(LD&C), PGCIL
  • 3. Shri Y.K Dixit, PGCIL
  • 4. Shri V. Srinivas, PGCIL
  • 5. Dr. L. Hari, PGCIL
  • 6. Shri A.K Sharma, PGCIL
  • 7. Shri U.K Tyagi, DGM, PGCIL
  • 8. Shri Ramesh Bahri, PGCIL
  • 9. Shri D.D Dayaseelan, PGCIL
  • 10. Shri P.C Pankaj, PGCIL
  • 11. Shri V.K Gupta, PGCIL
  • 12. Shri C. Kannan, PGCIL
  • 13. Shri V.C Jaganannathan, PGCIL
  • 14. Shri R.G Yadav, PGCIL
  • 15. Shri V.V Sharma, PGCIL
  • 16. Shri Samir Kumar, PGCIL
  • 17. Shri T.S.P Rao, PGCIL
Judges
  • Ashok Basu
  • Chairman
  • K.N Sinha
  • Member
  • Member
  • Bhanu Bhushan
See more information ...
Smart Summary

Legal Opinion Summary: Power Grid Corporation of India Ltd. — Gandhar Transmission System Tariff Revision

Factual and Procedural Background

The petitioner, Power Grid Corporation of India Ltd., applied for approval of tariff for elements of the transmission system associated with Gandhar Gas Power Project Stage I in the Western Region, for the period from the date of commercial operation of each asset until 31.3.2001. The opinion lists four assets with their dates of commercial operation: (a) 220 kV Gandhar-Bharuch D/C line with associated bays (1.8.1994); (b) 400 kV Gandhar-Dehgam D/C line with sub-station at Dehgam (1.6.1995); (c) 400 kV Gandhar-Padghe S/C line with associated bays (1.3.1998); and (d) 400 kV Gandhar-Gandhar S/C line (1.6.1998).

The regulatory Commission approved transmission charges for the transmission system by an order dated 12.8.2002 after considering the information submitted by the petitioner. Subsequent filings revealed a discrepancy concerning repayment of "Grid Bond I" loan: initially the petitioner indicated no repayments up to 31.3.2001, but in a later petition (Petition No. 74/2002) and affidavits (including one dated 30.4.2002) the petitioner showed part repayment of Grid Bond I prior to 31.3.2001. Based on those later details, the tariff for 1.4.2001–31.3.2004 was approved by the Commission considering part repayment prior to 31.3.2001, which created a need to revisit the tariff approved in the present petition by order dated 12.8.2002.

The Commission issued a show-cause notice to the petitioner directing it to explain (i) why the earlier tariff should not be reviewed, and (ii) why proceedings should not be initiated for filing an incorrect affidavit regarding Grid Bond I repayments. The petitioner responded and the Commission concluded there was no willful concealment: the mistake was held to be bona fide and proceedings against the petitioner or its officers for filing a false affidavit were dropped. The petitioner’s representative accepted that the tariff of 12.8.2002 required revision and submitted that similar cases involving Grid Bond I loan could be revised by the Commission suo motu without fresh notice; the Commission recorded that other similar cases would be revised without fresh show-cause notices to the petitioner.

Legal Issues Presented

  1. Whether the tariff previously approved by the Commission by order dated 12.8.2002 should be reviewed and revised in view of newly revealed details indicating part repayment of Grid Bond I loan prior to 31.3.2001.
  2. Whether the petitioner or its officers should be proceeded against for filing an incorrect affidavit concerning repayment of Grid Bond I loan (i.e., whether there was willful concealment or an intention to obtain undue benefit).
  3. Whether the Commission can revise tariffs in other similar cases involving Grid Bond I loan suo motu and without further notice to the petitioner.

Arguments of the Parties

Petitioner (Power Grid Corporation of India Ltd.)

  • The petitioner filed affidavits (including one dated 30.4.2002) and loan allocation details showing part repayment of Grid Bond I loan prior to 31.3.2001; these filings supported the repayment facts later used in tariff calculations for the period beginning 1.4.2001.
  • On receiving the show-cause notice, the petitioner replied and explained the discrepancy; the response led the Commission to find the mistake bona fide rather than willful concealment.
  • At hearing, the petitioner's representative accepted that the tariff approved on 12.8.2002 required revision and requested that the Commission may revise tariffs in all other similar cases (involving Grid Bond I) suo motu and without further notice to the petitioner.

The opinion does not contain a detailed account of any arguments advanced by other parties or respondents.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Commission's analytical approach and reasoning, as explained in the opinion, proceeded in distinct, documented steps:

  1. Scope limitation: The Commission confined its review to the components of transmission charges that were affected by the Grid Bond I repayment discrepancy. The five components of transmission charges originally allowed were: interest on loan, depreciation, operation & maintenance (O&M) charges, return on equity, and interest on working capital. The repayment discrepancy only affected the interest on loan component, and because interest on loan forms part of working capital, the interest on working capital component also required correction. The other components remained unchanged. The Commission therefore limited the revision to the interest-on-loan and interest-on-working-capital components.
  2. Source of revised inputs: For recalculation, the Commission relied on the petitioner's affidavit dated 30.4.2002 filed in Petition No. 78/2002 (for the 1.4.2001–31.3.2004 period) and other loan-allocation details filed by the petitioner. Those filings showed part repayment of Grid Bond I loan prior to 31.3.2001, which contradicted earlier statements in the present petition and required correction of the tariff previously approved.
  3. Treatment of Grid Bond I structure and rates: The Annual Report for the petitioner indicated Grid Bond I comprised three components (Issue I, Issue II and Issue III) with differing interest rates (16.75%, 17% and 9%). The petitioner did not provide an issue-wise break-up of the rate between Issue I and Issue II. Because of the missing break-up, the Commission adopted the conservative assumption—when computing month-wise interest up to February 1999—that the entire amount carried the 16.75% rate (i.e., treated Issue I/II as 16.75% where specifics were absent).
  4. Pro rata allocation for clubbed assets: For assets commissioned before 1.4.1997, the petitioner's weighted-average-rate details and loan-allocation details did not provide separate break-outs for Gandhar-Bharuch and Gandhar-Dehgam lines (they were clubbed). Consequently, the Commission apportioned loan for each such asset on a pro rata basis.
  5. Application of weighted average rates: The Commission calculated year-wise weighted average rates for the Gandhar-Bharuch and Gandhar-Dehgam lines and applied those rates to compute interest on the notional loan components used in the tariff. For assets commissioned after 1.4.1997 (Gandhar-Padghe and Gandhar-Gandhar lines), actual interest rates were used when available; for Grid Bond I Issue I and II where issue-wise rates were uncertain, the 16.75% assumption was used as described.
  6. Calculation method and temporal treatment: The Commission allowed interest up to 31.3.1997 based on average interest for previous years, and provided detailed tabular calculations of (a) weighted average rates of interest; (b) actual interest computed year-by-year for each listed asset; and (c) revised interest on working capital computed from specified components (one month's O&M expenses, 1% of capital cost for maintenance spares, and two months' receivables), using specified rates of interest for different years.
  7. Conclusion on the affidavit issue: On reviewing the petitioner's reply to the show-cause notice, the Commission was satisfied there was no willful concealment or intention to obtain undue benefit. The mistake was held to be bona fide, and the Commission dropped proceedings against the petitioner and any of its officers regarding filing of an allegedly false affidavit.
  8. Broader administrative step: The petitioner’s representative had submitted that other transmission lines involving Grid Bond I (with tariffs for periods ending 31.3.2001 already approved) also required revision. The Commission recorded this submission and determined that similar cases would be revised without issuing fresh show-cause notices to the petitioner.

The Commission then produced detailed recalculations and appended tables showing recalculated interest on loan, recalculated interest on working capital, and the resulting revised transmission charges for each asset and year under consideration. Those numerical tables are part of the opinion and form the factual basis for the Commission's order.

Holding and Implications

Holding:

The Commission ordered a partial revision of the tariff previously approved by order dated 12.8.2002 — limited to the interest on loan and interest on working capital components — and dropped proceedings against the petitioner and its officers for filing an incorrect affidavit, concluding the discrepancy was a bona fide mistake.

Implications

  • The direct effect of the decision is that the transmission charges previously approved by the Commission by order dated 12.8.2002 are revised only to the extent of (a) interest on loan and (b) interest on working capital; depreciation, O&M charges, and return on equity previously allowed remain unaffected.
  • The opinion contains detailed recalculated amounts: the Commission appended year-wise and asset-wise calculations of weighted average interest rates, actual interest payable, the revised interest-on-working-capital computations, and the final revised transmission charges for each asset and year (these tables and numeric results are part of the opinion).
  • Proceedings against the petitioner and its officers for filing an incorrect affidavit were dropped because the Commission found no willful concealment; the discrepancy was treated as a bona fide mistake.
  • The Commission recorded that other similar cases (transmission lines involving Grid Bond I where tariffs for the period ending 31.3.2001 had already been approved) will be revised without issuing fresh show-cause notices to the petitioner, and the revised transmission charges shall be shared by the respondents in accordance with the principles contained in paragraph 18 of the Commission's order dated 12.8.2002.
  • No new judicial precedent is stated to have been set by this administrative tariff revision; the decision operates as a regulatory correction and administrative determination in the particular factual and accounting circumstances described.

Note: This summary is based exclusively on the contents of the provided opinion. Where the opinion contained extensive numerical tables, this summary describes the Commission's methodology and conclusions; the detailed numerical tables and year-by-year figures are contained in the opinion itself.

Show full summary ...

    Power Grid Corporation Of India Ltd. v. Madhya Pradesh Electricity Board

    The petitioner, Power Grid Corporation of India Ltd. had made the application for approval of tariff in respect of the elements of the transmission system associated with Gandhar Gas Power Project Stage I (the transmission system) in Western Region from the date of commercial operation of the respective asset till 31.3.2001 The details of the different assets of the transmission system and the date of commercial operation of each of them are as indicated below:

    Name of the Asset Date of commercial operation (a) 220 kV Gandhar-Bharuch D/C line with associated bays 1.8.1994 (b) 400 kV Gandhar-Dehgam D/C line with sub-station at Dehgam 1.6.1995 (c) 400 kV Gandhar-Padghe S/C line with associated bays 1.3.1998 (d) 400 KV Gandhar-Gandhar S/C line 1.6.1998

    2. The transmission charges for the transmission system were approved by the Commission under its order dated 12.8.2002 after considering, among other things, the information placed on record by the petitioner. The Commission had allowed the following transmission charges:

    (Rs. in lakh)

    220 kV Gandhar-Bharuch D/C line

    Transmission Charges 1994-1996 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2002 Interest on Loan 31.23 31.23 31.23 26.66 22.41 18.16 13.92 Depreciation 21.02 21.02 21.02 28.03 28.03 28.03 28.03 O&M expenses 4.77 4.77 4.77 8.44 9.00 9.53 10.10 Return on Equity 24.90 24.90 24.90 30.40 30.40 30.40 30.40 Interest on working capital 2.77 2.77 2.77 3.14 2.89 2.63 2.50 TOTAL 84.69 84.69 84.69 96.67 92.72 88.75 84.94 220 kV Gandhar-Dehgam D/C line Interest on Loan 839.28 839.28 752.49 648.58 544.66 440.73 Depreciation 371.98 371.98 686.22 686.44 686.44 686.44 O&M expenses 117.51 117.51 201.89 215.41 228.03 241.71 Return on Equity 665.65 665.65 850.14 850.14 850.14 850.14 Interest on working capital 75.08 75.08 81.21 74.63 68.07 64.62 TOTAL 2069.50 2069.50 2571.95 2475.20 2377.33 2283.63 400 kV Gandhar-Padghe S/C line Interest on Loan 86.26 975.44 524.20 524.20 Depreciation 51.95 624.27 624.27 624.27 O&M expenses 14.27 172.46 182.57 193.52 Return on Equity 61.04 735.12 735.12 735.12 Interest on working capital 6.64 72.71 58.93 57.61 TOTAL 220.16 2580.00 2125.09 2134.72 400 kV Gandhar-Gandhar S/C line Interest on Loan 37.43 24.13 24.13 Depreciation 25.20 30.24 30.24 O&M expenses 6.95 8.75 9.28 Return on Equity 30.40 36.48 36.48 Interest on working capital 2.91 2.84 2.77 TOTAL 102.89 102.44 102.90

    3. The petitioner in support of its claim for interest on loan had indicated that there was no repayment of Grid Bond I loan taken for the transmission system, before 31.3.2002 In other words, no repayments up to 31.3.2001 were shown. However, in Petition No. 74/2002 made by the petitioner for approval of tariff in respect of the same transmission system for the period from 1.4.2001 to 31.3.2004, part payment of Grid Bond 1 loan was shown prior to 31.3.2001 Subsequently, affidavits were also filed on behalf of the petitioner showing the loan allocation details. These details also supported the fact of repayment of Grid Bond 1 loan prior to 31.3.2001 Thus, the details furnished in the affidavits filed on behalf of the petitioner are in agreement with the details of loan furnished in the main petition. Based on these details, the tariff for the period 1.4.2001 to 31.3.2004 was approved by the Commission by considering part repayment of Grid Bond 1 loan prior to 31.3.2001 This necessitated revision of tariff earlier approved by the Commission in present petition by order dated 12.8.2002

    4. Accordingly, a notice was issued to the petitioner directing it to show cause why the tariff already approved by the Commission by order dated 12.8.2002 should not be reviewed. The petitioner was also directed to show cause for filing the incorrect affidavit before the Commission in the proceedings in the present petition in so far as repayment of Grid Bond I loan was concerned. The petitioner has shown cause on both these counts. On perusal of the reply to the notice for show cause, we are satisfied that there was no willful concealment on the part of the petitioner of the information in regard to repayment of Grid Bond 1 loan or intention to draw any undue benefit. The mistake was bonafide. Therefore, the proceedings against the petitioner or any of its officers for filing false affidavit before the Commission are hereby dropped. At the hearing, however, the representative of the petitioner accepted that the tariff approved by the Commission by order dated 12.8.2002 needed revision. The representative of the petitioner had further submitted that the transmission charges for some other transmission lines also, which involved Grid Bond I loan, the tariff for the period ending 31.3.2001 in respect of which has already been approved by the Commission, called for revision. It was stated by the representative of the petitioner that the Commission could revise the tariff in all such cases suo motu and without any further notice to the petitioner. We have noted down the submission made by the petitioner. The tariff in all other similar cases would be, therefore, revised without a fresh show cause notice to the petitioner.

    5. As seen from para 2 above, the transmission charges allowed by order of 12.8.2002, comprise of five components, namely interest on loan, depreciation, O&M charges, return on equity and the interest on working capital. The discrepancy regarding repayment of Grid Bond I loan, affects interest on loan component of the transmission charges. Further, interest on loan forms part of the working capital on which interest is allowed. The correction of interest on loan component of tariff will involve further correction of interest on working capital component of the transmission charges. The other components of the transmission charges approved earlier will accordingly remain unaffected and unchanged. Therefore, through this order, we are confining our consideration to interest on loan and interest on working capital components of the transmission charges already approved.

    Interest on Loan

    6. The salient features of recalculation of interest on loan are summarised below:

    (a) Details of loan repaid before 31.3.2001 have been taken as per the affidavit dated 30.4.2002 filed by the petitioner in the proceedings in petition No. 78/2002 for approval of tariff for the period commencing 1.4.2001

    (b) As per Annual Report of the petitioner, Grid Bond-I consisted of three components, namely, Issue I, Issue II and Issue III, having different interest rates, these being 16.75%, 17% and 9%. According to the petitioner, repayment of the first two components, Issue I and Issue II, was due on 10th/13th March 1999. However, the break-up of rate of interest between Issue I and Issue II is not made available by the petitioner. Therefore, month-wise interest up to February 1999 has been worked out by considering that the entire amount carried 16.75% rate of interest.

    (c) In case of assets commissioned before 1.4.1997, details of weighted average rate of interest submitted by the petitioner under its affidavit dated 30.4.2002 do not contain issue-wise break up of Grid Bond I and Grid Bond III loans. Further, loan allocation details do not contain separate details for Gandhar-Bharuch and Gandhar-Dehgam transmission lines and both these assets are clubbed. Therefore, loan for each asset has been worked out on pro rata basis.

    (d) Year-wise weighted average rate for Gandhar-Bharuch and Gandhar-Dehgam transmission lines worked out has been applied to calculate the interest on loan component on notional loan component of the transmission charges. In respect of Gandhar - Padghe and Gandhar-Gandhar transmission lines, commissioned after 1.4.1997, actual rate of interest, except for Issue I and Issue II of Grid Bond I loan, have been considered. For Issue I and Issue II of Grid Bond I loan, rate of interest considered is 16.75% as indicated in sub-para (b) above.

    7. The calculations in support of the weighted average rate of interest and the actual interest payable in respect of Gandhar-Bharuch and Gandhar-Dehgam transmission lines are appended in the tables herein below. The interest up to 31.3.1997 has been allowed based on the average interest for the previous years.

    Calculation of Weighted Average Rate of Interest

    Gandhar-Bharuch Transmission Line Gandhar-Dehgam Transmission Line Details of Loan 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-2001 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-01 Actual DOCO 01.06.1995 01.06.1995 0.1.06.1995 Period from date of commercial operation (Year) 0.67 1.00 1.00 1.00 1.00 1.00 1.00 0.83 1.00 1.00 1.00 1.00 1.00 Loan 1a - GOI-1 Gross Loan-Opening 66.88 66.88 66.88 66.88 66.88 66.88 66.88 1595.00 1595.00 1595.00 1595.00 1595.00 1595.00 Cumulative Repayment upto Previous Year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Net Loan-Opening 66.88 66.88 66.88 66.88 66.88 66.88 66.88 1595.00 1595.00 1595.00 1595.00 1595.00 1595.00 Repayment during the year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 159.50 Net Loan-Closing 66.88 66.88 66.88 66.88 66.88 66.88 66.88 1595.00 1595.00 1595.00 1595.00 1595.00 1435.50 Average Loan 66.88 66.88 66.88 66.88 66.88 66.88 66.88 1595.00 1595.00 1595.00 1595.00 1595.00 1515.25 Rate of Interest 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% Interest 7.13 10.70 10.70 10.70 10.70 10.70 10.70 212.67 255.20 255.20 255.20 255.20 242.44 Repayment Schedule No repayment up to 31.03.2001 Loan 1b - GOI-2 Gross Loan-Opening 10.12 10.12 10.12 10.12 10.12 10.12 10.12 690.88 690.88 690.88 690.88 690.88 690.88 Cumulative Repayment upto Previous Year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Net Loan-Opening 10.12 10.12 10.12 10.12 10.12 10.12 10.12 690.88 690.88 690.88 690.88 690.88 690.88 Repayment during the year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Net Loan-Closing 10.12 10.12 10.12 10.12 10.12 10.12 10.12 690.88 690.88 690.88 690.88 690.88 690.88 Average Loan 10.12 10.12 10.12 10.12 10.12 10.12 10.12 690.88 690.88 690.88 690.88 690.88 690.88 Rate of Interest 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% Interest 1.08 1.62 1.62 1.62 1.62 1.62 1.62 92.12 110.54 110.54 110.54 110.54 110.54 Repayment Schedule No repayment up to 31.03.2001 Loan 1c - GOI-3 Gross Loan-Opening 27.00 27.00 27.00 27.00 27.00 27.00 27.00 407.12 407.12 407.12 407.12 407.12 407.12 Cumulative Repayment upto Previous Year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Net Loan-Opening 27.00 27.00 27.00 27.00 27.00 27.00 27.00 407.12 407.12 407.12 407.12 407.12 407.12 Repayment during the year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Net Loan-Closing 27.00 27.00 27.00 27.00 27.00 27.00 27.00 407.12 407.12 407.12 407.12 407.12 407.12 Average Loan 27.00 27.00 27.00 27.00 27.00 27.00 27.00 407.12 407.12 407.12 407.12 407.12 407.12 Rate of Interest 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% Interest 2.70 4.05 4.05 4.05 4.05 4.05 4.05 54.28 65.14 65.14 65.14 65.14 65.14 Repayment Schedule No repayment up to 31.03.2001 Loan 1 - GOI Gross Loan-Opening 104.00 104.00 104.00 104.00 104.00 104.00 104.00 2693.00 2693.00 2693.00 2693.00 2693.00 2693.00 Cumulative Repayment upto Previous Year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Net Loan-Opening 104.00 104.00 104.00 104.00 104.00 104.00 104.00 2693.00 2693.00 2693.00 2693.00 2693.00 2693.00 Repayment during the year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 159.50 Net Loan-Closing 104.00 104.00 104.00 104.00 104.00 104.00 104.00 2693.00 2693.00 2693.00 2693.00 2693.00 2533.50 Average Loan 104.00 104.00 104.00 104.00 104.00 104.00 104.00 2693.00 2693.00 2693.00 2693.00 2693.00 2613.25 Rate of Interest 15.74% 15.74% 15.74% 15.74% 15.74% 15.74% 15.74% 16% 16% 16% 16% 16% 16% Interest 10.91 16.37 16.37 16.37 16.37 16.37 16.37 359.07 430.88 430.88 430.88 430.88 418.12 Repayment Schedule Repayment schedule not mentioned here Loan 2 - Grid-I (Issue-I/II) Gross Loan-Opening 2.43 2.43 2.43 2.43 2.43 2.43 2.43 58.25 58.25 58.25 58.25 58.25 58.25 Cumulative Repayment upto Previous Year 0.00 0.00 0.00 0.00 0.00 2.43 2.43 0.00 0.00 0.00 0.00 58.25 58.25 Net Loan-Opening 2.43 2.43 2.43 2.43 2.43 0.00 0.00 58.25 58.25 58.25 58.25 0.00 0.00 Repayment during the year 0.00 0.00 0.00 0.00 2.43 0.00 0.00 0.00 0.00 0.00 58.25 0.00 0.00 Net Loan-Closing 2.43 2.43 2.43 2.43 0.00 0.00 0.00 58.25 58.25 58.25 0.00 0.00 0.00 Average Loan 2.43 2.43 2.43 2.43 1.21 0.00 0.00 58.25 58.25 58.25 29.13 0.00 0.00 Rate of Interest 16.75% 16.75% 16.75% 16.75% 16.75% 16.75% 16.75% 16.75% 16.75% 16.75% 16.75% 16.75% 16.75% Interest 0.27 0.41 0.41 0.41 0.20 0.00 0.00 8.13 9.76 9.76 4.88 0.00 0.00 Repayment Schedule 10/13 March 1999 Loan 3 - Grid-I (Issue-III) Gross Loan-Opening 2.57 2.57 2.57 2.57 2.57 2.57 2.57 61.75 61.75 61.75 61.75 61.75 61.75 Cumulative Repayment upto Previous Year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Net Loan-Opening 2.57 2.57 2.57 2.57 2.57 2.57 2.57 61.75 61.75 61.75 61.75 61.75 61.75 Repayment during the year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Net Loan-Closing 2.57 2.57 2.57 2.57 2.57 2.57 2.57 61.75 61.75 61.75 61.75 61.75 61.75 Average Loan 2.57 2.57 2.57 2.57 2.57 2.57 2.57 61.75 61.75 61.75 61.75 61.75 61.75 Rate of Interest 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% Interest 0.15 0.23 0.23 0.23 0.23 0.23 0.23 4.63 5.56 5.56 5.56 5.56 5.56 Repayment Schedule No repayment up to 31.03.2001 Loan 4 - Bonds-II Gross Loan-Opening 79.00 79.00 79.00 79.00 79.00 79.00 79.00 2039.00 2039.00 2039.00 2039.00 2039.00 2039.00 Cumulative Repayment upto Previous Year 0.00 0.00 0.00 0.00 0.00 79.00 79.00 0.00 0.00 0.00 0.00 2039.00 2039.00 Net Loan-Opening 79.00 79.00 79.00 79.00 79.00 0.00 0.00 2039.00 2039.00 2039.00 2039.00 0.00 0.00 Repayment during the year 0.00 0.00 0.00 0.00 79.00 0.00 0.00 0.00 0.00 0.00 2039.00 0.00 0.00 Net Loan-Closing 79.00 79.00 79.00 79.00 0.00 0.00 0.00 2039.00 2039.00 2039.00 0.00 0.00 0.00 Average Loan 79.00 79.00 79.00 79.00 39.50 0.00 0.00 2039.00 2039.00 2039.00 1019.50 0.00 0.00 Rate of Interest 14.78% 14.78% 14.78% 14.78% 14.78% 14.78% 14.78% 14.78% 14.78% 14.78% 14.78% 14.78% 14.78% Interest 7.78 11.68 11.68 11.68 5.84 0.00 0.00 251.14 301.36 301.36 150.68 0.00 0.00 Repayment Schedule Feb, 99 Loan 5 - UTI Gross Loan-Opening 47.00 47.00 47.00 47.00 47.00 47.00 47.00 1222.00 1222.00 1222.00 1222.00 1222.00 1222.00 Cumulative Repayment upto Previous Year 0.00 0.00 0.00 0.00 0.00 47.00 47.00 0.00 0.00 0.00 0.00 1222.00 1222.00 Net Loan-Opening 47.00 47.00 47.00 47.00 47.00 0.00 0.00 1222.00 1222.00 1222.00 1222.00 0.00 0.00 Repayment during the year 0.00 0.00 0.00 0.00 47.00 0.00 0.00 0.00 0.00 0.00 1222.00 0.00 0.00 Net Loan-Closing 47.00 47.00 47.00 47.00 0.00 0.00 0.00 1222.00 1222.00 1222.00 0.00 0.00 0.00 Average Loan 47.00 47.00 47.00 47.00 23.50 0.00 0.00 1222.00 1222.00 1222.00 611.00 0.00 0.00 Rate of Interest 16.70% 16.70% 16.70% 16.70% 16.70% 16.70% 16.70% 16.70% 16.70% 16.70% 16.70% 16.70% 16.70% Interest 5.23 7.85 7.85 7.85 3.92 0.00 0.00 170.06 204.07 204.07 102.04 0.00 0.00 Repayment Schedule Jan. 1999 Loan 6 - Bonds-III (Issue-II) Gross Loan-Opening 22.41 22.41 22.41 22.41 22.41 22.41 22.41 594.83 594.83 594.83 594.83 594.83 594.83 Cumulative Repayment upto Previous Year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Net Loan-Opening 22.41 22.41 22.41 22.41 22.41 22.41 22.41 594.83 594.83 594.83 594.83 594.83 594.83 Repayment during the year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Net Loan-Closing 22.41 22.41 22.41 22.41 22.41 22.41 22.41 594.83 594.83 594.83 594.83 594.83 594.83 Average Loan 22.41 22.41 22.41 22.41 22.41 22.41 22.41 594.83 594.83 594.83 594.83 594.83 594.83 Rate of Interest 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% Interest 1.46 2.19 2.19 2.19 2.19 2.19 2.19 48.33 58.00 58.00 58.00 58.00 58.00 Repayment Schedule No repayment up to 31.03.2001 Loan 7- Bonds-III (Issue-I) Gross Loan-Opening 3.59 3.59 3.59 3.59 3.59 3.59 3.59 95.17 95.17 95.17 95.17 95.17 95.17 Cumulative Repayment upto Previous Year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Net Loan-Opening 3.59 3.59 3.59 3.59 3.59 3.59 3.59 95.17 95.17 95.17 95.17 95.17 95.17 Repayment during the year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Net Loan-Closing 3.59 3.59 3.59 3.59 3.59 3.59 3.59 95.17 95.17 95.17 95.17 95.17 95.17 Average Loan 3.59 3.59 3.59 3.59 3.59 3.59 3.59 95.17 95.17 95.17 95.17 95.17 95.17 Rate of Interest 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% Interest 0.32 0.48 0.48 0.48 0.48 0.48 0.48 10.71 12.85 12.85 12.85 12.85 12.85 Repayment Schedule No repayment up to 31.03.2001 TOTAL Gross Loan-Opening 261.00 261.00 261.00 261.00 261.00 261.00 261.00 6764.00 6764.00 6764.00 6764.00 6764.00 6764.00 Cumulative Repayment upto Previous Year 0.00 0.00 0.00 0.00 0.00 128.43 128.43 0.00 0.00 0.00 0.00 3319.25 3319.25 Net Loan-Opening 261.00 261.00 261.00 261.00 261.00 132.57 132.57 6764.00 6764.00 6764.00 6764.00 3444.75 3444.75 Repayment during the year 0.00 0.00 0.00 0.00 128.43 0.00 0.00 0.00 0.00 0.00 3319.25 0.00 159.50 Net Loan-Closing 261.00 261.00 261.00 261.00 132.57 132.57 132.57 6764.00 6764.00 6764.00 3444.75 3444.75 3285.25 Average Loan 261.00 261.00 261.00 261.00 196.79 132.57 132.57 6764.00 6764.00 6764.00 5104.38 3444.75 3365.00 Rate of Interest 15.02% 15.02% 15.02% 15.02% 14.86% 14.54% 14.54% 15.12% 15.12% 15.12% 14.98% 14.73% 14.70% Interest 26.14 39.20 39.20 39.20 29.24 19.27 19.27 852.06 1022.48 1022.48 764.88 507.28 494.52

    Calculation of Actual Interest

    (Rs. In lakh)

    Gandhar-Bharuch Transmission Line Gandhar-Dehgam Transmission Line 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-2001 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-01 Opening Notional Loan 189.97 161.94 133.91 105.88 5313.35 4627.13 3940.69 3254.25 Repayment 28.03 28.03 28.03 28.03 686.22 686.44 686.44 686.44 Closing Notional Loan 161.94 133.91 105.88 77.85 4627.13 3940.69 3254.25 2567.81 Average Notional Loan 218.00 210.99 196.98 175.96 147.93 119.90 91.87 5636.10 5472.96 4970.24 4283.91 3597.47 2911.03 Rate of interest 15.02% 15.02% 15.02% 15.02% 14.86% 14.54% 14.54% 15.12% 15.12% 15.12% 14.98% 14.73% 14.70% Interest 21.83 31.69 29.59 26.43 21.98 17.43 13.35 709.98 827.32 751.32 641.93 529.77 427.81

    8. The interest payable in case of Gandhar-Padghe S/C transmission line and Gandhar-Gandgar S/C transmission line has been calculated as given hereunder.

    Calculation of Interest on Loan

    (Rs. In lakh)

    Gandhar-Padghe S/C Line Gandhar-Gandhar S/C Line Details of Loan 1997-1998 1998-1999 1999-2000 2000-2001 1998-1999 1999-2000 2000-2001 Actual DOCO 01.03.98 01.06.98 Period from DOCO (Year) 0.08 1.00 1.00 1.00 0.83 1.00 1.00 Loan 1 - GOI Opening Balance 2723.00 2723.00 2723.00 2723.00 132.00 132.00 132.00 Addition 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Repayment 0.00 0.00 0.00 272.30 0.00 0.00 0.00 Closing Balance 2723.00 2723.00 2723.00 2450.70 132.00 132.00 132.00 Rate of Interest 16.00% 16.00% 16.00% 16.00% 15.00% 15.00% 15.00% Interest 36.31 435.68 435.68 435.68 16.50 19.80 19.80 Repayment Schedule 15.03.2001 No repayment up to 31.03.2001 Loan 2- Grid-I (Issue-I/II) Opening Balance 58.74 58.74 0.00 0.00 2.91 0.00 0.00 Addition 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Repayment 0.00 58.74 0.00 0.00 2.91 0.00 0.00 Closing Balance 58.74 0.00 0.00 0.00 0.00 0.00 0.00 Rate of Interest 16.75% 16.75% 16.75% 16.75% 16.75% 16.75% 16.75% Interest 0.82 9.02 0.00 0.00 0.37 0.00 0.00 Repayment Schedule 10/13 March, 1999 10/13 March, 1999 Loan 3 - Grid-I (Issue-III) Opening Balance 62.26 62.26 62.26 62.26 3.09 3.09 3.09 Addition 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Repayment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Closing Balance 62.26 62.26 62.26 62.26 3.09 3.09 3.09 Rate of Interest 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% Interest 0.47 5.60 5.60 5.60 0.23 0.28 0.28 Repayment Schedule No repayment up to 31.03.2001 No repayment up to 31.03.2001 Loan 4 - Bonds-II Opening Balance 2061.00 2061.00 0.00 0.00 96.00 0.00 0.00 Addition 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Repayment 0.00 2061.00 0.00 0.00 96.00 0.00 0.00 Closing Balance 2061.00 0.00 0.00 0.00 0.00 0.00 0.00 Rate of Interest 14.78% 14.78% 14.78% 14.78% 14.78% 14.78% 14.78% Interest 25.38 279.23 0.00 0.00 10.64 0.00 0.00 Repayment Schedule Feb., 99 Feb., 99 Loan 5-UTI Opening Balance 1236.00 1236.00 0.00 0.00 60.00 0.00 0.00 Addition 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Repayment 0.00 1236.00 0.00 0.00 60.00 0.00 0.00 Closing Balance 1236.00 0.00 0.00 0.00 0.00 0.00 0.00 Rate of Interest 16.70% 16.70% 16.70% 16.70% 16.70% 16.70% 16.70% Interest 17.20 172.01 0.00 0.00 6.68 0.00 0.00 Repayment Schedule Jan., 99 Jan., 99 Loan 6 - Bonds-III (lssue-II) Opening Balance 601.72 601.72 601.72 601.72 29.31 29.31 29.31 Addition 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Repayment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Closing Balance 601.72 601.72 601.72 601.72 29.31 29.31 29.31 Rate of Interest 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% Interest 4.89 58.67 58.67 58.67 2.38 2.86 2.86 Repayment Schedule No repayment up to 31.03.2001 No repayment up to 31.03.2001 Loan 7 - Bonds-III (lssue-I) Opening Balance 96.28 96.28 96.28 96.28 4.69 4.69 4.69 Addition 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Repayment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Closing Balance 96.28 96.28 96.28 96.28 4.69 4.69 4.69 Rate of Interest 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% Interest 1.08 13.00 13.00 13.00 0.53 0.63 0.63 Repayment Schedule No repayment up to 31.03.2001 No repayment up to 31.03.2001 TOTAL Opening Balance 6839.00 6839.00 3483.26 3483.26 328.00 169.09 169.09 Addition 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Repayment 0.00 3355.74 0.00 272.30 158.91 0.00 0.00 Closing Balance 6839.00 3483.26 3483.26 3210.96 169.09 169.09 169.09 Interest 86.15 973.21 512.95 512.95 37.33 23.57 23.57

    lnterest on Working Capital

    9. The revised calculations in support of interest on working capital are appended hereinbelow. The Interest on Working Capital for the period up to 31.3.1997 has been allowed on the average working capital.

    (Rs. in lakh)

    220 kV Gandhar-Bharuch D/C line

    1994-1995 1995-1996 1996-1997 Average 1997-1998 1998-1999 1999-00 2000-2001
    Operation & Maintenance Expenses 1 month's of O&M expenses 0.40 0.70 0.75 0.79 0.84 Maintenance Spares 1% of capital cost 4.40 5.63 6.00 6.35 6.73 Receivables 2 months' average billing 13.64 16.07 15.38 14.67 14.06 Total 18.44 22.40 22.13 21.81 21.63 Rate of Interest 15% 14% 13% 12% 11.5% Interest on Working Capital 2.77 3.14 2.88 2.62 2.49

    200 kV Gandhar-Dehgam D/C line

    1994-1995 1995-1996 1996-1997 Average 1997-1998 1998-1999 1999-2000 2000-2001 Operation & Maintenance Expenses 1 month's of O&M expenses 9.79 16.82 17.95 19.00 20.14 Maintenance Spares 1% of capital cost 112.87 134.61 143.62 152.03 161.15 Receivables 2 months' average billing 332.28 428.46 411.40 393.69 378.41 Total 454.94 579.89 572.97 564.72 559.70 Rate of Interest 16.5% 14% 13% 12% 11.5% Interest on Working Capital 75.07 81.19 74.49 67.77 64.37

    400 kV Gandhar-Padghe S/C line

    1994-1995 1995-1996 1996-1997 Average 1997-1998 1998-1999 1999-2000 2000-2001 Operation & Maintenance Expenses 1 month's of O&M expenses 14.27 14.37 15.21 16.13 Maintenance Spares 1% of capital cost 114.17 114.97 121.71 129.01 Receivables 2 months' average billing 440.08 429.62 352.27 353.88 Total 568.52 558.96 489.19 499.02 Rate of Interest 14% 13% 12% 11.5% Interest on Working Capital 6.63 72.66 58.70 57.39

    400 kV Gandhar-Gandhar S/C line

    1994-1995 1995-1996 1996-1997 Average 1997-1998 1998-1999 1999-2000 2000-2001 Operation & Maintenance Expenses 1 months of O&M expenses 0.70 0.73 0.77 Maintenance Spares 1% of capital cost 5.56 5.83 6.18 Receivables 2 months' average billing 20.56 16.98 17.06 Total 26.82 23.54 24.01 Rate of Interest 13% 12% 11.5% Interest on Working Capital 2.91 2.82 2.76

    10. Based on the above, the revised transmission charges payable by the respondents are summarised as under:

    (Rs. in lakh)

    220 kV Gandhar-Bharuch D/C line with associated bays at Bharuch

    Transmission Charges 1994-1995 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 Interest on Loan 31.23 31.23 31.23 26.43 21.98 17.43 13.35 Depreciation 21.02 21.02 21.02 28.03 28.03 28.03 28.03 O&M expenses 4.77 4.77 4.77 8.44 9.00 9.53 10.10 Return on Equity 24.90 24.90 24.90 30.40 30.40 30.40 30.40 Interest on working capital 3.01 3.01 3.01 3.14 2.88 2.62 2.49 TOTAL 84.93 84.93 84.93 96.43 92.28 88.00 84.36 220 kV Gandhar-Dehgam D/C line with substation at Dehgam Interest on Loan 838.53 838.53 751.32 641.93 529.77 427.81 Depreciation 371.98 371.98 686.22 686.44 686.44 686.44 O&M expenses 117.51 117.51 201.89 215.41 228.03 241.71 Return on Equity 665.65 665.65 850.14 850.14 850.14 850.14 Interest on working capital 75.07 75.07 81.19 74.49 67.77 64.37 TOTAL 2069.50 2069.50 2570.75 2468.40 2362.14 2270.46 400 kV Gandhar-Padghe S/C line with bays at Padghe sub-station Interest on Loan 86.15 973.21 512.95 512.95 Depreciation 51.95 624.27 624.27 624.27 O&M expenses 14.27 172.46 182.57 193.52 Return on Equity 61.04 735.12 735.12 735.12 Interest on working capital 6.63 72.66 58.70 57.39 TOTAL 220.04 2577.72 2113.61 2123.25 400 kV Gandhar-Gandhar S/C line Interest on Loan 37.33 23.57 23.57 Depreciation 25.20 30.24 30.24 O&M expenses 6.95 8.75 9.28 Return on Equity 30.40 36.48 36.48 Interest on working capital 2.91 2.82 2.76 TOTAL 102.79 101.86 102.33

    11. The revised transmission charges shall be shared by the respondents in accordance with the principles contained in paragraph 18 of the order dated 12.8.2002

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    Comments

    Power Grid Corporation Of India Ltd. v. Madhya Pradesh Electricity Board
    (Jul 30, 2004)