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AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
  • 1. Shri U.K Tyagi, PGCIL
  • 2. Shri Prashant Sharma, PGCIL
  • 3. Shar B.C Pant, PGCIL
  • 4. Shri Mohd, Mohsin, PGCIL
  • 5. Shri R. Krishnaswami, TNEB
Judges
  • Pramod Deo
  • Chairperson
  • R. Krishnamoorthy, Member
  • S. Jayaraman, Member
  • V.S Verma, Member
Acts
  • Asset-I 13440.00 Asset-II 2247.00 Asset-III 938.00 Asset-IV 1511.00 Asset-V 2395.00 Total 20531.00DEBT-EQUITY RATIO19. Clause (1) of Regulation 54
  • Asset-I 517.36 Asset-II 86.49 Asset-III 16.40 Asset-IV 26.44 Asset-V 16.77 INTEREST ON LOAN24. Clause (i) of regulation 56
  • 5 aboveADDITIONAL CAPITALIZATION 2008-200911. Clause (1) of Regulation 53 of the 2004 regulations provides(1)
  • Annexure-V attached.DEPRECIATION28. Sub-clause (a) of clause (ii) of Regulation 56
  • sub-clause (b) of clause (ii) of Regulation 56
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
  • 1. Shri U.K Tyagi, PGCIL
  • 2. Shri Prashant Sharma, PGCIL
  • 3. Shar B.C Pant, PGCIL
  • 4. Shri Mohd, Mohsin, PGCIL
  • 5. Shri R. Krishnaswami, TNEB
Judges
  • Pramod Deo
  • Chairperson
  • R. Krishnamoorthy, Member
  • S. Jayaraman, Member
  • V.S Verma, Member
Acts
  • Asset-I 13440.00 Asset-II 2247.00 Asset-III 938.00 Asset-IV 1511.00 Asset-V 2395.00 Total 20531.00DEBT-EQUITY RATIO19. Clause (1) of Regulation 54
  • Asset-I 517.36 Asset-II 86.49 Asset-III 16.40 Asset-IV 26.44 Asset-V 16.77 INTEREST ON LOAN24. Clause (i) of regulation 56
  • 5 aboveADDITIONAL CAPITALIZATION 2008-200911. Clause (1) of Regulation 53 of the 2004 regulations provides(1)
  • Annexure-V attached.DEPRECIATION28. Sub-clause (a) of clause (ii) of Regulation 56
  • sub-clause (b) of clause (ii) of Regulation 56
See more information ...
Smart Summary

Structured Summary of the Opinion — Petition No. 192/2009

Factual and Procedural Background

The petition was filed seeking approval of transmission charges for specified transmission assets associated with the transformer/transmission system for the Kudamkulam Atomic Power Project (2 × 1000 MW) in the Southern Region. The assets for which transmission charges were sought are:

  • LILO of both circuits of Madurai–Trivendrum 400 kV D/C line and 1 × 63 MVAR Bus reactor (Asset‑I) — COD 1.5.2008;
  • 1 × 315 MVA, 400/220 kV transformer (Asset‑II) — COD 1.5.2008;
  • 2nd 400 kV, 63 MVAR Bus Reactor (Asset‑III) — COD 1.11.2008;
  • 2nd 1 × 315 MVA, 400/220 kV Auto transformer (Asset‑IV) — COD 1.11.2008; and
  • Three 1 × 63 MVAR Reactors and associated bays/equipment at Tirunelveli sub‑station (Asset‑V) — COD 1.2.2009.

The investment approval was accorded by the Ministry of Power on 25.5.2005 at an estimated cost of Rs. 177,929 lakh (including IDC of Rs. 7,141 lakh). Provisional transmission charges had been earlier approved by the Commission by orders dated 16.12.2008 (Petition No. 122/2008 for Asset‑I and Asset‑II) and 21.4.2009 (Petition No. 55/2009 for Asset‑III and Asset‑IV). Asset‑V was declared under commercial operation from 1.2.2009 and the petitioner sought final tariff for Asset‑V.

The petitioner submitted detailed capital cost figures, claimed transmission charges (broken down by depreciation, interest on loan, return on equity, O&M, interest on working capital, etc.), and details in support of interest on working capital and additional capitalisation for 2008–09. Tamil Nadu Electricity Board (TNEB) filed a reply dated 20.11.2009 (received 26.11.2009). No comments were received from the general public in response to published notices.

Legal Issues Presented

  1. Whether transmission charges for the listed transmission assets (Assets I–V) associated with the Kudamkulam project are to be approved from the respective dates of commercial operation up to 31.3.2009 in accordance with the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2004 ("2004 regulations").
  2. Whether additional capitalisation incurred after the date of commercial operation (for the year 2008–09) for the assets should be admitted for tariff determination under Regulation 53 of the 2004 regulations.
  3. Determination of admissible capital cost (including treatment of cost over‑run), debt‑equity ratio and the components of tariff (return on equity, interest on loan, depreciation, O&M, interest on working capital, etc.) in accordance with the 2004 regulations.
  4. Whether reimbursement of expenditure incurred by the petitioner for publication of notices and petition filing fee should be allowed.
  5. Apportionment/sharing of allowed transmission charges between regional beneficiaries and a specific beneficiary (TNEB) as per prior orders.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Commission's analysis closely follows applicable provisions of the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2004. The opinion identifies the relevant regulatory provisions and applies them to the petitioner's claims. The key steps of the court's reasoning are set out below in the order applied in the opinion:

1. Capital Cost and Additional Capitalisation

  • The Commission applied Regulation 52(1) (capital expenditure basis and initial spares ceiling of 1.5% of original project cost) to determine final tariff and noted applicability to assets declared under commercial operation on or after 1.4.2004.
  • Regulation 53(1) was cited to identify categories of additional capital expenditure that may be admitted post‑COD (deferred liabilities, works deferred, procurement of initial spares within ceiling, arbitration/court liabilities, change in law), subject to prudence check and submission requirements.
  • The petitioner claimed additional capitalisation for 2008–09 for each asset (retention payments, works such as building, line, sub‑station items). The Commission found that although the additional capital expenditure claimed was within original scope of work, it would not be considered for tariff because actual capital expenditure at COD exceeded the apportioned approved cost (i.e., there was a cost over‑run).
  • Because the actual expenditure up to COD (Rs. 23,102.63 lakh) exceeded the apportioned approved cost (Rs. 20,531 lakh), the Commission restricted admitted capital expenditure for tariff purposes to the apportioned approved cost of Rs. 20,531 lakh. This restriction was applied in accordance with the prudence check and the petitioner's inability at the hearing to produce an approved revised cost estimate (petitioner was granted liberty to file a fresh petition after approval of revised cost estimate).
  • The Commission noted that the value of initial spares corresponding to expenditure up to COD for the assets taken together was within the 1.50% ceiling under Regulation 52.

2. Debt–Equity Ratio

  • Regulation 54(1) was applied to determine the debt–equity treatment. The Commission noted Note 1 below Regulation 53 that committed liabilities within the original scope are to be serviced in the normative debt–equity ratio specified in Regulation 54.
  • The petitioner had presented actual debt–equity ratios as deployed at COD, and the Commission treated proportionate equity on the apportioned approved cost on a 70:30 normative basis for tariff purposes. Specific equity amounts considered for each asset were recorded in the order.
  • The Commission did not admit additional capitalisation from COD to 31.3.2009 for tariff (per earlier restriction), and therefore additional capitalisation was not included in the debt–equity computations for the tariff period in issue.

3. Return on Equity

  • Regulation 56(iii) prescribes return on equity at 14% per annum on the equity base determined under Regulation 54. The Commission computed return on equity for 2008–09 for each asset on the admitted equity amounts as on COD.

4. Interest on Loan

  • Regulation 56(i) and related clauses govern interest on loan; the Commission described the methodology: loan‑wise computation, loan outstanding as on 1.4.2004, normative repayment, re‑financing rules and treatment of moratoriums.
  • The Commission computed interest on loan on the basis of gross normative loan (as per petition) but excluded loans corresponding to additional capitalisation not admitted (since capital expenditure was restricted to apportioned approved cost). A weighted average rate of interest was derived using actual loanwise rates and average loan figures; normative repayment formulas and replacement of short‑term bridge loan by a bond for some assets were taken into account as appropriate.
  • The detailed loan schedules and weighted average rate calculations were provided in annexures attached to the order (Annexures I–V), and the Commission relied on those annexures for interest computations.

5. Depreciation

  • The Commission applied Regulation 56(ii) sub‑clauses on depreciation: historical cost basis, straight‑line method, residual value cap (10%), allowable maximum depreciation (90% of historical cost excluding land), pro‑rata charging for part years and spreading residual value after full loan repayment if required.
  • Depreciation for 2008–09 (pro‑rata) was computed for each asset based on gross block as on COD and the applicable depreciation rates, with figures set out in the order.

6. Advance Against Depreciation

  • Advance Against Depreciation (AAD) as per Regulation 56(ii)(b) was considered; the Commission noted the petitioner did not claim AAD and accordingly none was allowed.

7. Operation & Maintenance (O&M) Expenses

  • Regulation 56(iv) prescribes O&M norms per ckt‑km and per bay for the relevant years. The petitioner claimed O&M for specified ckt‑km and bays for each asset; the Commission allowed O&M as per the prescriptive norms and the petitioner's claimed configuration (e.g., circuit‑km for Asset‑I and bay counts for assets).
  • The petitioner also sought consideration of wage revision impacts; the Commission observed that it did not decide on that issue at this stage and noted the petitioner may approach appropriately in accordance with law.

8. Interest on Working Capital

  • The Commission applied Regulation 56(v) components: maintenance spares (@1% of historical cost escalated), O&M for one month, receivables (two months' average billing on target availability), and normative rate of interest (SBI PLR as on the relevant 1st April). The petitioner claimed interest on working capital at 12.25% (SBI PLR as on 1.4.2008) which the Commission accepted and allowed for the period.
  • Working capital components and resulting interest figures for each asset were computed and reported in the order.

9. Aggregation — Transmission Charges

  • Applying the admitted capital cost (restricted to apportioned approved cost) and the regulatory formulas for the tariff components, the Commission computed and allowed transmission charges (pro‑rata for 2008–09) for each asset. The order lists the component‑wise and total allowed transmission charges for Assets I–V.

10. Other Costs and Sharing

  • The Commission allowed reimbursement of publishing costs of Rs. 2,90,772/‑ to be claimed directly from respondents in one installment in the ratio applicable for sharing of transmission charges. It noted, per its separate general order dated 11.9.2008 in Petition No. 129/2005, that the petition filing fee is not allowed for reimbursement.
  • Sharing/allocation: Transmission charges for Asset‑I, Asset‑III and Asset‑V shall be shared by all Southern Region beneficiaries as per the 2004 regulations; charges for Asset‑II and Asset‑IV shall be borne by TNEB only, in accordance with an earlier order dated 28.3.2008 in Petition No. 85/2007.

Holding and Implications

Core Ruling:

The Commission disposed of Petition No. 192/2009 by allowing transmission charges for the five transmission assets for 2008–2009 (pro‑rata) on the basis of the apportioned approved cost (Rs. 20,531.00 lakh) without admitting the additional capitalisation claimed for 2008–09; the detailed allowed amounts for each asset were specified in the order.

The direct effects and specific consequences stated in the order are:

  • Admitted capital cost for tariff purposes was restricted to the apportioned approved cost of Rs. 20,531.00 lakh (asset‑wise breakdown provided in the order).
  • Additional capitalisation claimed for the year 2008–09 was not admitted for tariff because actual expenditure up to COD exceeded the apportioned approved cost; the petitioner was granted liberty to file a fresh petition after approval of a revised cost estimate.
  • The Commission allowed the component‑wise transmission charges (pro‑rata for 2008–09) for each asset. The totals allowed (Rs. in lakh) are recorded in the order as:
    • Asset‑I: Rs. 1,743.09 lakh
    • Asset‑II: Rs. 439.52 lakh
    • Asset‑III: Rs. 65.93 lakh
    • Asset‑IV: Rs. 111.68 lakh
    • Asset‑V: Rs. 75.50 lakh
  • The petitioner is entitled to reimbursement of publication costs amounting to Rs. 2,90,772/‑ to be claimed from the respondents in one installment according to charge‑sharing ratios; petition filing fee reimbursement is not allowed (per Commission's general order dated 11.9.2008 in Petition No. 129/2005).
  • Allocation: Charges for Asset‑I, Asset‑III and Asset‑V are to be shared by all Southern Region beneficiaries; charges for Asset‑II and Asset‑IV are to be borne by TNEB alone (as per prior order dated 28.3.2008 in Petition No. 85/2007).
  • The petitioner was granted liberty to file a fresh petition based on actual expenditure up to COD and additional capitalisation for 2008–09 after the revised cost estimate is approved.

Implications for precedent and broader law: the order applies and interprets provisions of the 2004 regulations for tariff determination and prudence checks. The opinion does not purport to set or discuss any new legal precedent beyond the application of the cited regulatory provisions; its immediate effect is the admission/rejection of claimed costs and the allowance of specified tariff amounts for the stated period.

Disposition: This order disposes of Petition No. 192/2009.

Show full summary ...

    Power Grid Corporation Of India Limited v. Karnataka Power Transmission Corporation Limited

    This petition has been filed for approval of transmission charges for (i) LILO of both circuits of Madurai-Trivendrum 400 kV D/C line and 1 × 63 MVAR Bus reactor, (ii) 1 × 315, 400/220 kV MVA Transformer (iii) 2nd 400 kV, 63 MVAR Bus Reactor, (iv) 2nd 1 × 315 MVA, 400/220 kV Auto transformer and (v) 3 no. 1 × 63 MVAR Reactor along with associated bays and equipments at Tiruneveli sub-station (collectively referred to as the transmission assets) under “transformer system (the transmission system) associated with Kudamkulam Atomic Power Project (2× 1000 MW) in Southern Region from the date of commercial operation of the respective asset to 31.3.2009, based on the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2004 (hereinafter referred to as “the 2004 regulations”) after accounting for additional capitalization during 2008-2009. The petitioner has also prayed for reimbursement of expenditure from the beneficiaries incurred towards publishing of notices in newspapers and the petition filing fee.

    2. The details of transmission assets and their dates of commercial operation as indicated by the petitioner are as under:

    S. No. Name of the assets Date of commercial operation 1. LILO of both circuits of Madurai-Trivendrum 400 kV D/C line and 1× 63 MVAR Bus reactor (Asset-I) 1.5.2008 2. 1× 315, 400/220 kV MVA Transformer (Asset-II) 1.5.2008 3. 2nd 400 kV, 63 MVAR Bus Reactor (Asset-III) 1.11.2008 4. 2nd 1× 315 MVA, 400/220 kV Auto transformer (Asset-IV) 1.11.2008 5. 3 no. 1× 63 MVAR Reactor along with associated bays and equipments at Tiruneveli sub-station (Asset-V) 1.2.2009

    3. The investment approval for the transmission system was accorded by Ministry of Power vide its letter dated 25.5.2005 at an estimated cost of Rs. 177929 lakh, which includes IDC of Rs. 7141 lakh.

    4. The provisional transmission charges for the transmission assets were approved by the Commission vide its order dated 16.12.2008 in Petition No. 122/2008 (for Asset-I and Asset-II) and order dated 21.4.2009 in Petition No. 55/2009 (Asset-III and Asset-IV). Asset-V has been declared under commercial operation from 1.2.2009 and petitioner has sought final tariff for Asset-V.

    5. The details of the apportioned approved cost, the estimated completion cost, etc. of the transmission assets noted at para 2 above are as under:

    (Rs. in lakh)

    Name of the assets Apportioned approved cost Capital expenditure as on the date of commercial operation Capital Expenditure from the date of commercial operation to 31.3.2009 Balance estimated Expenditure Total estimated completion cost Asset-I 13440.00 14515.73 569.15 129.12 15214.00 Asset-II 2247.00 2689.26 109.38 24.82 2823.46 Asset-III 938.00 957.22 34.39 15.55 1007.16 Asset-IV 1511.00 1939.61 70.59 120.26 2130.46 Asset-V 2395.00 3000.81 160.56 45.34 3206.71 Total 20531.00 23102.63 944.07 335.09 24381.79

    6. The petitioner has claimed the transmission charges as under:

    (Rs. in lakh)

    Asset-I Asset-II Asset-III Asset-IV Asset-V 2008-2009 (Pro rata) 2008-2009 (Pro rata) 2008-2009 (Pro rata) 2008-2009 (Pro rata) 2008-2009 (Pro rata) Depreciation 382.27 90.98 14.62 29.62 18.49 Interest on Loan 695.34 141.28 20.77 42.02 26.23 Return on Equity 569.72 105.61 17.03 34.56 21.57 Advance against Depreciation 0.00 0.00 0.00 0.00 0.00 Interest on Working Capital 57.31 14.84 2.02 4.08 2.69 O & M Expenses 202.67 150.79 13.71 27.42 21.93 Total 1907.31 503.50 68.15 137.70 90.91

    7. The details submitted by the petitioner in support of its claim for interest on working capital are given hereunder:

    (Rs. in lakh)

    Asset-I Asset-II Asset-III Asset-IV Asset-V 2008-2009 (Pro rata) 2008-2009 (Pro rata) 2008-2009 (Pro rata) 2008-2009 (Pro rata) 2008-2009 (Pro rata) Maintenance Spares 145.16 26.89 9.57 19.40 30.01 O & M expenses 18.42 13.71 2.74 5.48 10.97 Receivables 346.78 91.55 27.26 55.08 90.91 Total 510.36 132.15 39.57 79.96 131.89 Rate of Interest 12.25% 12.25% 12.25% 12.25% 12.25% Interest 57.31 14.84 2.02 4.08 2.69

    8. The reply to the petition has been filed by Tamil Nadu Electricity Board (TNEB) under letter dated 20.11.2009, which was received on 26.11.2009 In response to the public notices published by the petitioner in accordance with the procedure specified by the Commission, no comments have been received from the general public.

    CAPITAL COST

    9. As per clause (1) of Regulation 52 of the 2004 regulations, subject to prudence check, the actual expenditure incurred on completion of the project shall form the basis for determination of final tariff. The final tariff shall be determined based on the admitted capital expenditure actually incurred up to the date of commercial operation of the transmission system and shall include capitalised initial spares subject to a ceiling norm as 1.5% of original project cost. The regulation is applicable in case of the transmission system declared under commercial operation on or after 1.4.2004

    10. The petitioner has claimed tariff after accounting for additional capitalization in respect of Asset-I, Asset-II, Asset-III, Asset-IV and Asset-V from the date of commercial operation up to 31.3.2009 as given in the table below para 5 above

    ADDITIONAL CAPITALIZATION 2008-2009

    11. Clause (1) of Regulation 53 of the 2004 regulations provides—

    “(1) The following capital expenditure within the original scope of work actually incurred after the date of commercial operation and up to the cut off date may be admitted by the Commission, subject to prudence check:

    (i) Deferred liabilities;

    (ii) Works deferred for execution;

    (iii) Procurement of initial capital spares in the original scope of works subject to the ceiling norm specified in regulation 52;

    (iv) Liabilities to meet award of arbitration or compliance of the order or decree of a court; and

    (v) On account of change in law:

    Provided that original scope of work along with estimates of expenditure shall be submitted along with the application for provisional tariff:

    Provided further that a list of the deferred liabilities and works deferred for execution shall be submitted along with the application for final tariff after the date of commercial operation of the transmission system.”

    12. The details submitted by the petitioner in support of its claim for additional capital expenditure for Asset-I, Asset-II, Asset-III, Asset-IV and Asset-V are given hereunder:

    Asset-I Asset-II Asset-III Asset-IV Asset-V Year Amount (Rs. in lakh) Nature and details of expenditure Amount (Rs. in lakh) Nature and details of expenditure Amount (Rs. in lakh) Nature and details of expenditure Amount (Rs. in lakh) Nature and details of expenditure Amount (Rs. in lakh) Nature and details of expenditu re 2008-2009 Building: Rs. 1.59 Transmission line: Rs. 269.32 lakh Sub-station: Rs. 298.24 lakh Retention payments Sub-station: Rs. 109.38 lakh Retention payments Sub-station: Rs. 34.39 lakh Retention payments Sub-station: Rs. 70.59 lakh Retention payments Sub-station: Rs. 160.56 lakh Retention payments Total Rs. 569.15 lakh Rs. 109.38 lakh Rs. 34.39 lakh Rs. 70.59 lakh Rs. 160.56 lakh

    13. The additional capital expenditure claimed is within the original scope of work. However, for reasons stated below, additional capital expenditure after date of the commercial operation is not being considered for the purpose of tariff.

    Cost over-run

    14. As against the apportioned approved cost of Rs. 20531 lakh, the actual expenditure up to the date of commercial operation is Rs. 23102.63 lakh. The petitioner has submitted the following reasons for cost over-run:

    (a) LOA cost is higher than estimated cost;

    (b) High price variation; and (b) Additional cost of entry etc.

    15. The petitioner has further explained that revised cost estimate of the transmission system is under approval and shall be submitted shortly. The representative of the petitioner has stated that revised cost estimate is still to be approved and therefore, it is not in a position to submit to revised cost estimate.

    16. In view of the above, the capital expenditure as on the date of commercial operation is being restricted to the apportioned approved cost. Apportioned approved cost of Rs. 20531 lakh has been considered for the purpose of tariff. Accordingly, tariff has been worked out without considering additional capital expenditure for the year 2008-2009 as actual capital expenditure on the date of commercial operation exceeds apportioned approved cost. The petitioner is granted liberty to file fresh petition in accordance with law, based on actual expenditure up to the date of commercial operation and additional capital expenditure for the year 2008-2009, after approval of revised cost estimate.

    Initial spares

    17. The value of initial spares corresponding to the expenditure up to date of commercial operation for the transmission assets taken together is within 1.50% of the expenditure.

    TOTAL CAPITAL COST

    18. Based on the above, Apportioned approved cost as given below has been considered for the purpose of tariff for the transmission system, without allowing additional capitalization on woks as claimed by the petitioner:

    (Rs. in lakh)

    Name of the Element capital cost considered as on the date of commercial operation Asset-I 13440.00 Asset-II 2247.00 Asset-III 938.00 Asset-IV 1511.00 Asset-V 2395.00 Total 20531.00

    DEBT-EQUITY RATIO

    19. Clause (1) of Regulation 54 of the 2004 regulations inter alia provides that,—

    “(1) In case of the existing projects, debt-equity ratio Considered by the Commission for fixation of tariff for the period ending 31.3.2004 shall be considered for determination of tariff with effect from 01.04.2004:

    Provided that in cases where the tariff for the period ending 31.3.2004 has not been determined by the Commission, debt-equity ratio shall be as may be decided by the Commission:

    Provided further that in case of the existing projects where additional capitalisation has been completed on or after 1.4.2004 and admitted by the Commission under Regulation 53, equity in the additional capitalisation to be considered shall be:—

    (a) 30% of the additional capital expenditure admitted by the Commission, or

    (b) equity approved by the competent authority in the financial package, for additional capitalisation, or

    (c) actual equity employed,

    whichever is the least:

    Provided further that in case of additional expenditure admitted under the second proviso, the Commission may consider equity of more than 30% if the transmission licensee is able to satisfy the Commission that deployment of such equity of more than 30% was in the interest of general public.”

    20. The Note 1 below Regulations 53 lays down that any expenditure on account of committed liabilities within the original scope of work is to be serviced in the normative debt-equity ratio specified in Regulation 54.

    21. The petitioner has considered debt-equity ratio of 70:30, 70.01:29.99, 70.04:29.96, 70:30 and 70.:30 for transmission Asset-I, Asset-II, Asset-III, Asset-IV and Asset-V, respectively, as actually deployed on the date of commercial operation. The petitioner has further considered the amount of additional capitalization in the normative debt-equity ratio of 70:30 for transmission Asset-I, Asset-II, Asset-III, Asset-IV and Asset-V, respectively. The additional capital expenditure approved in the ratio of 70:30 has been considered in accordance with the 2004 regulations. Due to reason given in para 18 above, proportionate equity of Rs. 4031 lakh, Rs. 673 lakh, Rs. 281.06 lakh, Rs. 453.24 lakh and Rs. 718 lakh has been considered as on the date of commercial operation for transmission Asset-I, Asset-II, Asset-III, Asset-IV and Asset-V, respectively. Further, due to reason given in para 16 above, additional capital expenditure from the date of commercial operation to 31.3.2009 is not being considered for the purpose of tariff.

    RETURN ON EQUITY

    22. As per clause (iii) of Regulation 56 of the 2004 regulations, return on equity shall be computed on the equity base determined in accordance with regulation 54 @ 14% per annum. Equity invested in foreign currency is to be allowed a return in the same currency and the payment on this account is made in Indian Rupees based on the exchange rate prevailing on the due date of billing.

    23. Equity has been considered as on the date of commercial operation as given in the table in para 21 above. Same has been considered for the purpose of tariff. Accordingly, the petitioner shall be entitled to return on equity for the year 2008-2009 given as under:

    (Rs. in lakh)

    Name of the Element Return on equity Asset-I 517.36 Asset-II 86.49 Asset-III 16.40 Asset-IV 26.44 Asset-V 16.77

    INTEREST ON LOAN

    24. Clause (i) of regulation 56 of the 2004 regulations inter alia provides that,—

    “(a) Interest on loan capital shall be computed loan wise on the loans arrived at in the manner indicated in regulation 54.

    (b) The loan outstanding as on 1.4.2004 shall be worked out as the gross loan in accordance with Regulation 54 minus cumulative repayment as admitted by the Commission or any other authority having power to do so, up to 31.3.2004 The repayment for the period 2004-09 shall be worked out on a normative basis.

    (c) The transmission licensee shall make every effort to re-finance the loan as long as it results in net benefit to the beneficiaries. The costs associated with such re-financing shall be borne by the beneficiaries.

    (d) The changes to the loan terms and conditions shall be reflected from the date of such re-financing and benefit passed on to the beneficiaries.

    (e) In case of dispute, any of the parties may approach the Commission with proper application. However, the beneficiaries shall not withhold any payment ordered by the Commission to the transmission licensee during pendency of any dispute relating to re-financing of loan;

    (f) In case any moratorium period is availed of by the transmission licensee, depreciation provided for in the tariff during the years of moratorium shall be treated as repayment during those years and interest on loan capital shall be calculated accordingly.

    (g) The transmission licensee shall not make any profit on account of re-financing of loan and interest on loan;

    (h) The transmission licensee may, at its discretion, swap loans having floating rate of interest with loans having fixed rate of interest, or vice versa, at its own cost and gains or losses as a result of such swapping shall accrue to the transmission licensee:

    Provided that the beneficiaries shall be liable to pay interest for the loans initially contracted, whether on floating or fixed rate of interest.”

    25. In our calculation, the interest on loan has been worked out as detailed below:

    (a) Gross amount of loan and repayment of instalments have been taken as per the petition.

    (b) On the basis of actual rate of interest on actual average loan, the weighted average rate of interest on loan has been worked out for various years. As stated above, the expenditure as on date of commercial operation has been restricted to the apportioned approved cost, therefore, the loans corresponding to the additional capital expenditure have not been taken in to account while working out the weighted average rate of interest.

    (c) Tariff has been worked out considering normative loan and normative repayment. Normative repayments are worked out by the following formula:

    (d) In case the normative repayment of loan during the year is less than the depreciation during the year, depreciation during the year has been deemed as normative repayment of loan.

    (e) Short term bridge loan from Bank of Baroda has been replaced by Bond XXVIII in case of Asset-III and Asset-IV. Therefore, for these assets rate of interest applicable to Bond XXVIII has been considered for weighted average rate of interest.

    (f) ADB-III loan carry floating rates of interest. The rates of interest as per the supporting documents enclosed with the petition have been used for working out the interest on loan. This is subject to mutual settlement between the parties in case of any change/resetting of the interest rates during the tariff period.

    26. Based on the above, the details of interest worked out are given hereunder:

    (Rs. in lakh)

    Details Asset-I Asset-II Asset-III Asset-IV Asset-V 2008-2009 2008-2009 2008-2009 2008-2009 2008-2009 Gross Normative Loan 9408.64 1573.08 656.94 1057.76 1676.50 Cumulative Repayment up to Previous Year/date of commercial operation 0.00 0.00 0.00 0.00 0.00 Net Loan-Opening 9408.64 1573.08 656.94 1057.76 1676.50 Addition due to Additional Capitalisation 0.00 0.00 0.00 0.00 0.00 Repayment during the year 346.44 74.51 14.07 22.67 14.37 Net Loan-Closing 9062.20 1498.57 642.87 1035.09 1662.13 Average Loan 9235.42 1535.83 649.90 1046.42 1669.32 Weighted Average Rate of Interest on Loan 7.37% 8.15% 7.31% 7.30% 7.25% Interest (Pro rata) 623.87 114.69 19.79 31.82 20.18

    27. The detailed calculations in support of the weighted average rate of interest are contained in Annexure-I, Annexure-II, Annexure-III, Annexure-IV and Annexure-V attached.

    DEPRECIATION

    28. Sub-clause (a) of clause (ii) of Regulation 56 of the 2004 regulations provides for computation of depreciation in the following manner, namely:

    (i) The value base for the purpose of depreciation shall be the historical cost of the asset.

    (ii) Depreciation shall be calculated annually based on straight line method over the useful life of the asset and at the rates prescribed in Appendix II to these regulations. The residual value of the asset shall be considered as 10% and depreciation shall be allowed up to maximum of 90% of the historical capital cost of the asset. Land is not a depreciable asset and its cost shall be excluded from the capital cost while computing 90% of the historical cost of the asset. The historical capital cost of the asset shall include additional capitalisation on account of Foreign Exchange Rate Variation up to 31.3.2004 already allowed by the Central Government/Commission.

    (iii) On repayment of entire loan, the remaining depreciable value shall be spread over the balance useful life of the asset.

    (iv) Depreciation shall be chargeable from the first year of operation. In case of operation of the asset for part of the year, depreciation shall be charged on pro rata basis.

    29. Depreciation allowed has been worked out as below:

    (Rs. in lakh)

    Details Asset-I Asset-II Asset-III Asset-IV Asset-V 2008-2009 2008-2009 2008-2009 2008-2009 2008-2009 Gross block as on the date of commercial operation 13440.00 2247.00 938.00 1511.00 2395.00 Additional Capitalisation during 2007-2008 0.00 0.00 0.00 0.00 0.00 Gross Block at the end of the year 13440.00 2247.00 938.00 1511.00 2395.00 Rate of Depreciation 2.8120% 3.6176% 3.6000% 3.6000% 3.6000% Depreciable Value 11945.17 2022.30 844.20 1359.90 2155.50 Balance Useful life of the asset — — Remaining Depreciable Value 11945.17 2022.30 844.20 1359.90 2155.50 Depreciation (Pro rata) 346.44 74.51 14.07 22.67 14.37

    ADVANCE AGAINST DEPRECIATION

    30. As per sub-clause (b) of clause (ii) of Regulation 56 of the 2004 regulations, in addition to allowable depreciation, the transmission licensee is entitled to Advance Against Depreciation, computed in the manner given hereunder:

    AAD = Loan repayment amount as per regulation 56(i) subject to a ceiling of 1/10th of loan amount as per regulation 54 minus depreciation as per schedule

    31. It is provided that Advance Against Depreciation shall be permitted only if the cumulative repayment up to a particular year exceeds the cumulative depreciation up to that year. It is further provided that Advance Against Depreciation in a year shall be restricted to the extent of difference between cumulative repayment and cumulative depreciation up to that year.

    32. The petitioner has not claimed Advance Against Depreciation and accordingly, Advance Against Depreciation has not been considered.

    OPERATION & MAINTENANCE EXPENSES

    33. In accordance with clause (iv) of Regulation 56 the 2004 regulations, the following norms are prescribed for O. & M. expenses

    Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 O&M expenses (Rs. in lakh per ckt-km) 0.227 0.236 0.246 0.255 0.266 O&M expenses (Rs. in lakh per bay) 28.12 29.25 30.42 31.63 32.90

    34. The petitioner has claimed O. & M. expenses for 150.79 ckt km and five bays for Asset-I, five bays for Asset-II, one bay for Asset-III, two bays for Asset-IV and four bays for Asset-V which have been allowed. Accordingly, the petitioner's entitlement to O. & M. expenses for the 2008-2009 has been worked out as given hereunder:

    (Rs. in lakh)

    Asset-I Asset-II Asset-III Asset-IV Asset-V O&M expenses for 212.744 ckt km 51.87 — — — O&M expenses for 5 bays 150.79 O&M expenses for 5 bays 150.79 O&M expenses for 1 bay 13.71 O&M expenses for 2 bays 27.42 O&M expenses for 4 bays 21.93 Total 202.67 150.79 13.71 27.42 21.93

    35. The petitioner has submitted that the wage revision of its employees is due with effect from 1.1.2007 Therefore, according to the petitioner, O. & M. expenses should be subject to revision on account of revision of employee cost from that date. In the alternative, it has been prayed that the increase in employee cost due to wage revision be allowed as per actuals for extra cost to be incurred consequent to wage revision. We are not expressing any view, as this issue does not arise for consideration at this stage. The petitioner may approach for a relief in this regard at an appropriate stage in accordance with law.

    INTEREST ON WORKING CAPITAL

    36. The components of the working capital and the interest thereon are discussed hereunder:

    (i) Maintenance spares

    Regulation 56(v)(1)(b) of the 2004 regulations provides for maintenance spares @ 1% of the historical cost escalated @ 6% per annum from the date of commercial operation. In the present case, restricted element wise capital expenditure on the date of commercial operation which has been considered as the historical cost for the purpose of the present petition and maintenance spares have been worked out accordingly @ 1%. In this manner, the value of maintenance spares works out to Rs. 134.40 lakh, Rs. 22.47 lakh, Rs. 9.38 lakh, Rs. 15.11 lakh and Rs. 23.95 lakh for transmission Asset-I, Asset-II, Asset-III, Asset-IV and Asset-V, respectively as on date of commercial operation. The necessary details are given hereunder:

    Transmission assets Date of commercial operation Capital Expenditure on the date of commercial operation (Rs. in lakh) Restricted capital expenditure Cost of maintenance spares as on the date of commercial operation (Rs. in lakh) Asset-I 1.5.2008 14515.73 13440.00 134.40 Asset-II 1.5.2008 2689.26 2247.00 22.47 Asset-III 1.11.2008 957.22 938.00 9.38 Asset-IV 1.11.2008 1939.61 1511.00 15.11 Asset-V 1.2.2009 3000.81 2395.00 23.95

    (ii) O. & M. expenses

    Regulation 56(v)(1)(a) of the 2004 regulations provides for operation and maintenance expenses for one month as a component of working capital. The petitioner has claimed O&M expenses for 1 month as claimed in the petition. This has been considered in the working capital.

    (iii) Receivables

    As per Regulation 56(v)(1)(c) of the 2004 regulations, receivables will be equivalent to two months average billing calculated on target availability level. The petitioner has claimed the receivables on the basis 2 months' transmission charges claimed in the petition. In the tariff being allowed, receivables have been worked out on the basis of 2 months' transmission charges.

    (iv) Rate of interest on working capital

    As per Regulation 56(v)(2) of the 2004 regulations, rate of interest on working capital shall be on normative basis and shall be equal to the short-term Prime Lending Rate of State Bank of India as on 1.4.2004 or on 1st April of the year in which the project or part thereof (as the case may be) is declared under commercial operation, whichever is later. The interest on working capital is payable on normative basis notwithstanding that the transmission licensee has not taken working capital loan from any outside agency. The petitioner has claimed interest on working capital @ 12.25% based on SBI PLR as on 1.4.2008, which is in accordance with the 2004 regulations and has been allowed.

    37. The necessary computations in support of interest on working capital are appended herein below:

    (Rs. in lakh)

    Asset-I Asset-II Asset-III Asset-IV Asset-V 2008-2009 (Pro rata) 2008-2009 (Pro rata) 2008-2009 (Pro rata) 2008-2009 (Pro rata) 2008-2009 (Pro rata) Maintenance Spares 134.40 22.47 9.38 15.11 23.95 O & M expenses 18.42 13.71 2.74 5.48 10.97 Receivables 316.92 79.91 26.37 44.67 75.50 Total 469.75 116.09 38.50 65.27 110.41 Rate of Interest 12.25% 12.25% 12.25% 12.25% 12.25% Interest 52.75 13.04 1.96 3.33 2.25

    TRANSMISSION CHARGES

    38. The transmission charges being allowed for the five transmission assets are summarised below:

    (Rs. in lakh)

    Asset-I Asset-II Asset-III Asset-IV Asset-V 2008-2009 (Pro rata) 2008-2009 (Pro rata) 2008-2009 (Pro rata) 2008-2009 (Pro rata) 2008-2009 (Pro rata) Depreciation 346.44 74.51 14.07 22.67 14.37 Interest on Loan 623.87 114.69 19.79 31.82 20.18 Return on Equity 517.36 86.49 16.40 26.44 16.77 Advance against Depreciation 0.00 0.00 0.00 0.00 0.00 Interest on Working Capital 52.75 13.04 1.96 3.33 2.25 O & M Expenses 202.67 150.79 13.71 27.42 21.93 Total 1743.09 439.52 65.93 111.68 75.50

    39. In addition to the transmission charges, the petitioner shall be entitled to other charges like income-tax, incentive, surcharge and other cess and taxes in accordance with the 2004 regulations.

    40. The petitioner has sought approval for the reimbursement of expenditure of Rs. 2,90,772/- incurred on publication of notices in the newspapers. The petitioner shall claim reimbursement of the said expenditure directly from the respondents in one installment in the ratio applicable for sharing of transmission charges. The Commission by its separate general order dated 11.9.2008 in Petition No. 129/2005 has decided that the petitioner shall not be allowed reimbursement of the petition filing fee.

    41. Transmission charges for Asset-I, Asset-III and Asset-V shall be shared by all Southern Region beneficiaries as the 2004 regulations and for Asset-II and Asset-IV shall be borne by TNEB only in accordance with order dated 28.3.2008 in Petition No. 85/2007.

    42. This order disposes of Petition No. 192/2009.

    Annexure-I

    CALCULATION OF WEIGHTED AVERAGE RATE OF INTEREST ON LOAN

    Asset-I

    (Rs. in lakh) Details of Loan 2008-2009 1 Bond-XIX Gross Loan opening 450.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 450.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 450.00 Average Loan 450.00 Rate of Interest 9.25% Interest 41.62 Repayment Schedule 12 Annual instalments from 24.7.2010 2 Bond-XX Gross Loan opening 40.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 40.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 40.00 Average Loan 40.00 Rate of Interest 8.93% Interest 3.57 Repayment Schedule 12 Annual instalments from 7.9.2010 3 Bond-XXI Gross Loan opening 3658.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 3658.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 3658.00 Average Loan 3658.00 Rate of Interest 8.73% Interest 319.34 Repayment Schedule 12 Annual instalments from 11.10.2010 4 Bond-XXII Gross Loan opening 450.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 450.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 450.00 Average Loan 450.00 Rate of Interest 8.68% Interest 39.06 Repayment Schedule 12 Annual instalments from 7.12.2010 5 Bond-XXIV Gross Loan opening 450.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 450.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 450.00 Average Loan 450.00 Rate of Interest 9.95% Interest 44.78 Repayment Schedule 12 Annual instalments from 26.3.2011 6 Bond-XXV Gross Loan opening 360.00 0.00 Net Loan-Opening 360.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 360.00 Average Loan 360.00 Rate of Interest 10.10% Interest 36.36 Repayment Schedule 12 Annual instalments from 12.6.2011 7 Bond-XXVI Gross Loan opening 258.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 258.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 258.00 Average Loan 258.00 Rate of Interest 9.30% Interest 23.99 Repayment Schedule 12 Annual instalments from 7.3.2012 8 ADB III Gross Loan opening 4495.70 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 4495.70 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 4495.70 Average Loan 4495.70 Rate of Interest 5.34% Interest 240.13 Repayment Schedule 30 HY instalments from 15-1-2010 Total Loan Gross Loan opening 10161.70 Cumulative Repayment up to the date of commercial operation 0.00 Net Loan-Opening 10161.70 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 10161.70 Average Loan 10161.70 Rate of Interest 7.37% Interest 748.85

    Annexure-II

    Asset-II

    (Rs. in lakh) Details of Loan 2008-2009 1 Bond-XIX Gross Loan opening 50.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 50.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 50.00 Average Loan 50.00 Rate of Interest 9.25% Interest 4.62 Repayment Schedule 12 Annual instalments from 24.7.2010 2 Bond-XX Gross Loan opening 4.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 4.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 4.00 Average Loan 4.00 Rate of Interest 8.93% Interest 0.36 Repayment Schedule 12 Annual instalments from 7.9.2010 3 Bond-XXI Gross Loan opening 1142.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 1142.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 1142.00 Average Loan 1142.00 Rate of Interest 8.73% Interest 99.70 Repayment Schedule 12 Annual instalments from 11.10.2010 4 Bond-XXII Gross Loan opening 50.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 50.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 50.00 Average Loan 50.00 Rate of Interest 8.68% Interest 4.34 Repayment Schedule 12 Annual instalments from 7.12.2010 5 Bond-XXIV Gross Loan opening 50.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 50.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 50.00 Average Loan 50.00 Rate of Interest 9.95% Interest 4.98 Repayment Schedule 12 Annual instalments from 26.3.2011 6 Bond-XXV Gross Loan opening 125.00 0.00 Net Loan-Opening 125.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 125.00 Average Loan 125.00 Rate of Interest 10.10% Interest 12.63 Repayment Schedule 12 Annual instalments from 12.6.2011 7 Bond-XXVI Gross Loan opening 53.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 53.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 53.00 Average Loan 53.00 Rate of Interest 9.30% Interest 4.93 Repayment Schedule 12 Annual instalments from 7.3.2012 8 ADB III Gross Loan opening 408.70 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 408.70 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 408.70 Average Loan 408.70 Rate of Interest 5.34% Interest 21.83 Repayment Schedule 30 HY instalments from 15-1-2010 Total Loan Gross Loan opening 1882.70 Cumulative Repayment up to the date of commercial operation 0.00 Net Loan-Opening 1882.70 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 1882.70 Average Loan 1882.70 Rate of Interest 8.15% Interest 153.38

    Annexure-III

    Asset-III

    (Rs. in lakh) Details of Loan 2008-2009 1 Bond-XIX Gross Loan opening 3.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 3.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 3.00 Average Loan 3.00 Rate of Interest 9.25% Interest 0.28 Repayment Schedule 12 Annual instalments from 24.7.2010 2 Bond-XXI Gross Loan opening 50.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 50.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 50.00 Average Loan 50.00 Rate of Interest 8.73% Interest 4.37 Repayment Schedule 12 Annual instalments from 11.10.2010 3 Bond-XXII Gross Loan opening 50.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 50.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 50.00 Average Loan 50.00 Rate of Interest 8.68% Interest 4.34 Repayment Schedule 12 Annual instalments from 7.12.2010 4 Bond-XXIV Gross Loan opening 50.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 50.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 50.00 Average Loan 50.00 Rate of Interest 9.95% Interest 4.98 Repayment Schedule 12 Annual instalments from 26.3.2011 5 Bond-XXV Gross Loan opening 100.00 0.00 Net Loan-Opening 100.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 100.00 Average Loan 100.00 Rate of Interest 10.10% Interest 10.10 Repayment Schedule 12 Annual instalments from 12.6.2011 6 Bond-XXVI Gross Loan opening 50.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 50.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 50.00 Average Loan 50.00 Rate of Interest 9.30% Interest 4.65 Repayment Schedule 12 Annual instalments from 7.3.2012 7 ADB III Gross Loan opening 296.40 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 296.40 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 296.40 Average Loan 296.40 Rate of Interest 4.39% Interest 13.02 Repayment Schedule 30 HY instalments from 15-1-2010 8 Bond XXVIII [STBL FROM BOB 29.09.2008 to 14.12.2008 @ 12.5% Replaced by BOND XXVIII @ 9.33% from 15.12.2008] Gross Loan opening 71.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 71.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 71.00 Average Loan 71.00 Rate of Interest 10.25% Interest 7.28 Repayment Schedule 12 Annual instalments from 15.12.2012 Total Loan Gross Loan opening 670.40 Cumulative Repayment up to the date of commercial operation 0.00 Net Loan-Opening 670.40 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 670.40 Average Loan 670.40 Rate of Interest 7.31% Interest 49.00

    Annexure-IV

    Asset-IV

    (Rs. in lakh) Details of Loan 2008-2009 Gross Loan opening 7.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 7.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 7.00 Average Loan 7.00 Rate of Interest 9.25% Interest 0.65 Repayment Schedule 12 Annual instalments from 24.7.2010 2 Bond-XXI Gross Loan opening 100.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 100.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 100.00 Average Loan 100.00 Rate of Interest 8.73% Interest 8.73 Repayment Schedule 12 Annual instalments from 11.10.2010 3 Bond-XXII Gross Loan opening 150.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 150.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 150.00 Average Loan 150.00 Rate of Interest 8.68% Interest 13.02 Repayment Schedule 12 Annual instalments from 7.12.2010 4 Bond-XXIV Gross Loan opening 50.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 50.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 50.00 Average Loan 50.00 Rate of Interest 9.95% Interest 4.98 Repayment Schedule 12 Annual instalments from 26.3.2011 5 Bond-XXV Gross Loan opening 200.00 0.00 Net Loan-Opening 200.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 200.00 Average Loan 200.00 Rate of Interest 10.10% Interest 20.20 Repayment Schedule 12 Annual instalments from 12.6.2011 6 Bond-XXVI Gross Loan opening 100.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 100.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 100.00 Average Loan 100.00 Rate of Interest 9.30% Interest 9.30 Repayment Schedule 12 Annual instalments 7.3.2012 7 ADB III Gross Loan opening 592.80 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 592.80 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 592.80 Average Loan 592.80 Rate of Interest 4.39% Interest 26.03 Repayment Schedule 30 HY instalments from 15-1-2010 8 Bond XXVIII [STBL FROM BOB 29.09.2008 to 14.12.2008 @ 12.5% Replaced by BOND XXVIII @ 9.33% from 15.12.2008] Gross Loan opening 158.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 158.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 158.00 Average Loan 158.00 Rate of Interest 10.25% Interest 16.20 Repayment Schedule 12 Annual instalments from 15.12.2012 Total Loan Gross Loan opening 1357.80 Cumulative Repayment up to the date of commercial operation 0.00 Net Loan-Opening 1357.80 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 1357.80 Average Loan 1357.80 Rate of Interest 7.30% Interest 99.10

    Asset-V

    (Rs. in lakh) Details of Loan 2008-2009 1 Bond-XIX Gross Loan opening 96.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 96.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 96.00 Average Loan 96.00 Rate of Interest 9.25% Interest 8.88 Repayment Schedule 12 Annual instalments from 24.7.2010 2 Bond-XXI Gross Loan opening 240.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 240.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 240.00 Average Loan 240.00 Rate of Interest 8.73% Interest 20.95 Repayment Schedule 12 Annual instalments from 11.10.2010 3 Bond-XXII Gross Loan opening 240.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 240.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 240.00 Average Loan 240.00 Rate of Interest 8.68% Interest 20.83 Repayment Schedule 12 Annual instalments from 7.12.2010 4 Bond-XXIV Gross Loan opening 80.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 80.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 80.00 Average Loan 80.00 Rate of Interest 9.95% Interest 7.96 Repayment Schedule 12 Annual instalments from 26.3.2011 5 Bond-XXV Gross Loan opening 400.00 0.00 Net Loan-Opening 400.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 400.00 Average Loan 400.00 Rate of Interest 10.10% Interest 40.40 Repayment Schedule 12 Annual instalments from 12.6.2011 6 Bond-XXVI Gross Loan opening 152.00 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 152.00 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 152.00 Average Loan 152.00 Rate of Interest 9.30% Interest 14.14 Repayment Schedule 12 Annual instalments from 7.3.2012 7 ADB III Gross Loan opening 892.26 Cumulative Repayment up to the date of commercial operation/previous year 0.00 Net Loan-Opening 892.26 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 892.26 Average Loan 892.26 Rate of Interest 4.39% Interest 39.18 Repayment Schedule 30 HY instalments from 15-12010 Total Loan Gross Loan opening 2100.26 Cumulative Repayment up to the date of commercial operation 0.00 Net Loan-Opening 2100.26 Additions during the year 0.00 Repayment during the year 0.00 Net Loan-Closing 2100.26 Average Loan 2100.26 Rate of Interest 7.25% Interest 152.34

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    Comments

    Power Grid Corporation Of India Limited v. Karnataka Power Transmission Corporation Limited
    (Dec 21, 2009)