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AMICUS AI
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citation codes
Case Number
Advocates
  • 1. Shri U.K Tyagi, PGCIL
  • 2. Shri V.V Sharma, PGCIL
  • 3. Shri A.K Nagpal, PGCIL
  • 4. Shri M.M Mandol, PGCIL
  • 5. Shri Mohd. Mohsin, PGCIL
  • 6. Shri R. Krishnaswami, TNEB
Judges
  • Pramod Deo
  • Chairperson
  • Bhanu Bhushan, Member
  • R. Krishnamoorthy, Member
  • S. Jayaraman, Member
Acts
  • Annexure-VIII attached.DEPRECIATION19. Sub-clause (a) of clause (ii) of Regulation 56
  • sub-clause (b) of clause (ii) of Regulation 56
  • clauses (1) and (2) of Regulation 53
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
  • 1. Shri U.K Tyagi, PGCIL
  • 2. Shri V.V Sharma, PGCIL
  • 3. Shri A.K Nagpal, PGCIL
  • 4. Shri M.M Mandol, PGCIL
  • 5. Shri Mohd. Mohsin, PGCIL
  • 6. Shri R. Krishnaswami, TNEB
Judges
  • Pramod Deo
  • Chairperson
  • Bhanu Bhushan, Member
  • R. Krishnamoorthy, Member
  • S. Jayaraman, Member
Acts
  • Annexure-VIII attached.DEPRECIATION19. Sub-clause (a) of clause (ii) of Regulation 56
  • sub-clause (b) of clause (ii) of Regulation 56
  • clauses (1) and (2) of Regulation 53
See more information ...
Smart Summary

Summary of the Opinion (Petition No. 113/2008)

Factual and Procedural Background

The petition seeks revision of transmission charges by accounting for additional capital expenditure (ACE) incurred during 2004-2005, 2005-2006, 2006-2007 and 2007-2008 for Ramagundam Stage-III transmission system in the Southern Region. The transmission system comprises four assets:

  • Asset-I: 400 kV Ramagundam–Hyderabad D/C line (date of commercial operation 1.11.2004; apportioned approved cost Rs. 11,214 lakh).
  • Asset-II: 400 kV S/C Hyderabad–Kurnool–Gooty line (DOCO 1.3.2005; apportioned approved cost Rs. 11,324 lakh).
  • Asset-III: 400 kV S/C Khammam–Nagarjunasagar line (DOCO 1.3.2004; apportioned approved cost Rs. 5,768 lakh).
  • Asset-IV: 400 kV S/C Gooty–Neelmangla line (DOCO 1.5.2005; apportioned approved cost Rs. 8,983 lakh).

Administrative approval and expenditure sanction for the transmission system were accorded by the Ministry of Power (Central Government) by letter dated 29/30.8.2001 at an estimated cost of Rs. 39,012 lakh (including IDC of Rs. 4,204 lakh).

Transmission charges for these assets had earlier been approved in separate orders (referred to collectively as "the previous tariff orders"): Asset-I and Asset-II in order dated 22.11.2006 (Petition No. 21/2006), Asset-III in order dated 5.5.2006 (Petition No. 128/2005), and Asset-IV in order dated 15.3.2007 (Petition No. 130/2006). The petitioner provided details and annexures of ACE and sought revision of charges up to 31.3.2009 based on the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2004 ("the 2004 regulations").

A reply to the petition was filed by Tamil Nadu Electricity Board (TNEB). The Commission rendered a decision allowing revision of transmission charges as set out in the order; the order disposes Petition No. 113/2008.

Legal Issues Presented

  1. Whether the additional capital expenditure incurred during 2004-05 through 2007-08 for the specified transmission assets can be capitalised under clauses (1) and (2) of Regulation 53 of the 2004 regulations and included for tariff determination.
  2. How the tariff components for the revised capital base should be computed in accordance with the 2004 regulations, specifically: the debt-equity ratio to be applied to additional capitalization, the return on equity (Regulation 56(iii)), interest on loan (Regulation 56(1)), depreciation (Regulation 56(ii)), Advance Against Depreciation, operation & maintenance norms (Regulation 56(iv)), and interest on working capital (Regulation 56(v)).
  3. Procedural question of recovery and disallowance of the petition filing fee (in light of a separate general order dated 11.9.2008 in Petition No. 129/2005 (suo motu)).

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 proceeded by applying the relevant provisions of the 2004 regulations to the petitioner's submissions and annexures. The reasoning, as expressed in the opinion, is summarized step-by-step below:

  1. Additional capitalisation: The Commission examined the nature of the ACE claimed (retention payments, deferred payments, compensation, price variation, balance/settlement payments, erection and additional taxes/duties) and found these to be deferred liabilities within the original scope of work. Consequently the Commission allowed capitalization of the additional expenditure under clauses (1) and (2) of Regulation 53 of the 2004 regulations. The petitioner stated that overall completion cost after ACE remained within the approved Rs. 39,012 lakh; the Commission calculated the total capital cost for tariff as Rs. 29,838 lakh after ACE.
  2. Debt–equity ratio and equity treatment: The Commission noted the debt–equity ratios used in the previous tariff orders (varying by asset as on DOCO). For the additional capitalisation during the years in question the petitioner applied a notional 70:30 debt–equity split; the Commission found this treatment to be in order and accepted the equity amounts for tariff computations as provided in the order's tables.
  3. Return on equity: The Commission applied clause (iii) of Regulation 56 of the 2004 regulations, which prescribes return on equity at 14% per annum, and computed return on equity on the equity base determined in accordance with Regulation 54. For years in which ACE occurred, tariff for that year used average equity.
  4. Interest on loan: The Commission followed the methodology in clause (1) of Regulation 56: it computed interest loan-wise using loans as arrived under Regulation 54; worked out loan outstanding as on 1.4.2004; treated notional loans (70% of ACE) as normative loan; used weighted average rate of interest on actual loans to compute interest on the notional average loan; and applied normative repayments. The Commission explained handling of moratorium, refinancing provisions and floating/fixed rate swaps as per Regulation 56 and noted that ADB-II and OBC loans carry floating rates with settlement of changes mutually between petitioner and beneficiaries. Annexures (IV–VIII) contain the detailed year-wise loan and interest calculations relied upon.
  5. Depreciation: The Commission applied sub-clause (a) of clause (ii) of Regulation 56, computing depreciation on historical cost using the straight-line method and rates prescribed in Appendix II to the 2004 regulations, allowing depreciation up to 90% of historical cost and excluding land cost. Depreciation figures are shown in Annexure-IX.
  6. Advance Against Depreciation (AAD): The Commission set out the formula from Regulation 56(ii)(b) (AAD = loan repayment subject to ceiling of 1/10th of loan minus schedule depreciation), explained the cumulative repayment/depreciation condition for AAD and described how it computed AAD in the present case (1/10th of gross notional loan; consideration of cumulative repayment and depreciation; use of Annexures IV and IX). Annexure-X contains the computed AAD entries.
  7. Operation & Maintenance (O&M) expenses: The Commission adopted the normative O&M expense norms prescribed by clause (iv) of Regulation 56 (values per ckt‑km and per bay for each year), and retained the O&M expenses as taken in the previous tariff orders because line lengths and number of bays remained unchanged.
  8. Interest on working capital: The Commission applied Regulation 56(v) to determine working capital components (maintenance spares @1% escalated @6% per annum, one month O&M, receivables = two months' billing) and the rate of interest on working capital (normative, equal to SBI PLR as on relevant date). The petitioner claimed interest at 10.25%, based on SBI PLR as at 1 April of the year of commercial operation of each asset; the Commission allowed the same and included the computations in Annexure-XI.
  9. Outcome and housekeeping: Based on the above statutory application and annexed calculations, the Commission allowed revised transmission charges for the assets (shown in Annexure-XII). The Commission ordered recovery of the additional transmission charges for the period up to 31.3.2009 in six half-yearly instalments. The petitioner had sought reimbursement of the Rs. 1 lakh filing fee; the Commission, referring to its separate general order dated 11.9.2008 in Petition No. 129/2005 (suo motu), decided that the petitioner shall not be allowed reimbursement of the petition filing fee. The Commission confirmed that the permitted transmission charges shall be included in the Southern Region regional transmission tariff and shared by regional beneficiaries per the 2004 regulations.

Holding and Implications

Core Ruling: The Commission allowed the revision of transmission charges by capitalising the additional capital expenditure (as permitted under clauses (1) and (2) of Regulation 53 of the 2004 regulations) and approved the revised tariff components and consolidated transmission charges for the four assets as set out in Annexure-XII. The order disposes Petition No. 113/2008.

Immediate consequences and implementation measures explicitly stated in the opinion:

  • The total capital cost considered for tariff after allowing additional capitalisation is Rs. 29,838 lakh.
  • The Commission accepted a notional debt–equity treatment of 70:30 for the additional capitalisation and applied the relevant debt–equity figures and average equity for tariff computation.
  • Return on equity was computed at 14% per annum as prescribed by Regulation 56(iii).
  • Interest on loan, depreciation, Advance Against Depreciation, O&M, interest on working capital and other tariff components were calculated in accordance with the 2004 regulations and annexures; the revised monetary figures are reflected in Annexures IV–XII.
  • The petitioner shall recover the additional transmission charges for the period up to 31.3.2009 in six half‑yearly instalments from beneficiaries.
  • The petitioner's claim for reimbursement of the Rs. 1 lakh filing fee was denied in accordance with a separate general order (Petition No. 129/2005 dated 11.9.2008 (suo motu)).
  • The approved transmission charges shall be included in the regional transmission tariff for the Southern Region and shared by the regional beneficiaries under the 2004 regulations.

The opinion does not purport to create or state any new judicial precedent; it applies the 2004 regulations to the facts and calculations provided by the petitioner and disposes of the administrative petition accordingly.

Show full summary ...

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

    This petition has been filed for revision of transmission charges after accounting for additional capital expenditure incurred during 2004-2005, 2005-2006, 2006-2007 and 2007-2008 in respect of (i) 400 kV Ramagundam-Hyderabad D/C transmission line (Asset-I), (ii) 400 kV S/C Hyderabad-Kurnool-Gooty transmission line (Asset-II), (iii) 400 kV S/C Khammam-Nagarjunasagar transmission line (Asset-III), and (iv) 400 kV S/C Gooty-Neelmangla transmission line (Asset-IV) along with associated bays and equipment under Ramagundam Stage-III transmission system (hereinafter referred to as ‘the transmission system’) in Southern Region for the period up 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”).

    2. The administrative approval and expenditure sanction for the transmission system was accorded by the Central Government in Ministry of Power vide letter dated 29/30.8.2001 at an estimated cost of Rs. 39012 lakh which included IDC of Rs. 4204 lakh.

    3. The details of the respective transmission asset, their dates of commercial operation and apportioned approved cost as indicated by the petitioner are as under:

    S. No. Name of the asset Date of commercial operation Apportioned approved cost (Rs. in lakh) (a) Asset-I 1.11.2004 11214.00 (b) Asset-II 1.3.2005 11324.00 (c) Asset-III 1.3.2004 5768.00 (d) Asset-IV 1.5.2005 8983.00

    4. The transmission charges for Asset-I and Asset-II were approved by the Commission in its order dated 22.11.2006 in Petition No. 21/2006, for Asset-III vide order dated 5.5.2006 in Petition No. 128/2005 and for Asset-IV vide order dated 15.3.2007 in Petition No. 130/2006. Hereinafter, these orders are being collectively referred to as “the previous tariff orders”. The summary of the transmission charges approved is given at Annexure-I.

    5. The relevant details of the approved cost etc. of the transmission assets claimed by the petitioner are as under:

    Name of the element Capital expenditure as per the previous tariff orders Additional capital expenditure during 2004-2005 Gross block as on 31.3.2005 Additional capital expenditure during 2005-2006 Gross block as on 1.4.2006 Additional capital expenditure during 2006-2007 Gross block as on 1.4.2007 Additional capital expenditure during 2007-2008 Gross block as on 1.4.2008 Asset-I 9172.10 (1.11.2004) 138.07 9310.17 — 9310.17 9310.17 9310.17 Asset-II 8048.20 (1.3.2005) — 8048.20 587.59 8635.79 54.55 8690.34 8690.34 Asset-III 4654.59 (1.4.2004) 4.23 4658.82 — 4658.82 — 4658.82 4658.82 Asset-IV 6990.93 (1.4.2006) — — 6990.93 151.02 7141.95 37.07 7179.02

    6. Based on the above additional capital expenditure, the petitioner has claimed the additional transmission charges for the years 2004-2005, 2005-2006, 2006-2007 and 2007-2008 is given in Annexure-II.

    7. The reply to the petition has been filed by Tamil Nadu Electricity Board (TNEB).

    Additional Capital Expenditure

    8. The details submitted by the petitioner in support of its claim for additional capital expenditure are given in Annexure-III.

    9. It is found that the additional capital expenditure claimed is mainly on account of retention payments, deferred payments, compensation, price variation etc. These are part of the deferred liabilities relating to works/services and are within the original scope of work. Therefore, the additional expenditure sought to be capitalised is allowed under clauses (1) and (2) of Regulation 53 of the 2004 regulations. The petitioner has submitted that the overall completion cost of the transmission system after considering the additional capitalization is within the approved cost of Rs. 39012 lakh. After taking into account the additional capital expenditure for all the transmission assets, the total capital cost works out to Rs. 29838 lakh for the purpose of tariff.

    TOTAL CAPITAL COST

    10. Based on the above, capital cost for the purpose of tariff for each of the transmission asset, works out as under:

    Name of the element Capital expenditure as per the previous tariff orders Additional capital expenditure during 2004-2005 Gross block as on 31.3.2005 Additional capital expenditure during 2005-2006 Gross block as on 1.4.2006 Additional capital expenditure during 2006-2007 Gross block as on 1.4.2007 Additional capital expenditure during 2007-2008 Gross block as on 1.4.2008 Asset-I 9172.10 (1.11.2004) 138.07 9310.17 — 9310.17 9310.17 9310.17 Asset-II 8048.20 (1.3.2005) — 8048.20 587.59 8635.79 54.55 8690.34 8690.34 Asset-III 4654.59 (1.4.2004) 4.23 4658.82 — 4658.82 — 4658.82 4658.82 Asset-IV 6990.93 (1.4.2006) — — 6990.93 151.02 7141.95 37.07 7179.02

    DEBT- EQUITY RATIO

    11. As per the previous tariff orders, debt-equity ratio of 79.71:20.29 for Asset-I, 77.53:22.47 for Asset-II, 80.11:19.89 for Asset-III and 77.23:22.77 for Asset-IV, as on the date of commercial operation was considered. The petitioner has further considered the amount of additional capitalization during 2004-2005, 2005-2006, 2006-2007 and 2007-2008 in the debt-equity ratio of 70:30. This has been found to be in order. Accordingly, for the purpose of tariff, equity considered for the transmission assets is as under:

    (Rs. in lakh)

    Equity as on date of commercial operation Equity as on 1.4.2005 Notional additional equity during 2005-2006 Equity as on 1.4.2006 National additional equity during 2006-2007 Average equity for 2006-2007 National additional equity during 2007-2008 Average equity for 2007-2008 Equity as on 1.4.2000 Asset-I 1861.32 1882.03 — 1902.74 — 1902.74 — 1902.74 1902.74 Asset-II 1808.08 — 176.28 1896.22 16.37 1992.54 — 2000.72 2000.72 Asset-III 925.84 926.47 — 927.11 — 927.11 — 927.11 927.11 Asset-IV 1499.74 — 120.95 1560.22 45.31 1643.35 11.12 1671.56 1677.12

    RETURN ON EQUITY

    12. 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.

    13. Equity as given the table under para 11 above has been considered. However, tariff for the year of additional capital expenditure approved has been allowed on average equity. Accordingly, return on equity allowed is given as under:

    (Rs. in lakh)

    Name of the asset Return on equity 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Asset-I 109.79 (Pro rata) 266.38 266.38 266.38 266.38 Asset-II 21.09 (Pro rata) 265.47 278.96 280.10 280.10 Asset-III 129.71 129.79 129.79 129.79 129.79 Asset-IV — 200.23 (Pro rata) 230.07 234.02 234.80

    INTEREST ON LOAN

    14. Clause (1) 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.”

    15. The petitioner has not utilised any actual loan for the additional capital expenditure incurred during 2004-08. However, 70% of the additional capital expenditure has been considered as notional loan.

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

    (a) Gross amount of loan, repayment of instalments and rate of interest submitted have been used to work out weighted average rate of interest on actual loan.

    (b) Notional loan arising out of additional capital expenditure has been added in loan amount as on date of commercial operation to arrive at total notional loan. This adjusted gross loan is considered as normative loan for tariff calculations.

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

    (d) Moratorium in repayment of loan is considered with reference to normative loan and if the normative repayment of loan during the year is less than the depreciation including Advance Against Depreciation during the year, then depreciation including Advance Against Depreciation during the year is deemed as normative repayment of loan during the year.

    (e) Weighted average rate of interest on actual loan worked out as per (i) above is applied on the notional average loan during the year to arrive at the interest on loan.

    (f) ADB-II and OBC loans carry floating rates of interest. Any change in the floating rate of interest and consequent increase/decrease in the interest on loan shall be settled mutually between the petitioner and beneficiaries

    17. Based on above, year-wise interest on loan worked out is given in Annexure-IV.

    18. The detailed calculations in support of the weighted average rate of interest are contained in Annexure-V, Annexure-VI, Annexure-VII and Annexure-VIII attached.

    DEPRECIATION

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

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

    (b) 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.

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

    (d) 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.

    20. Depreciation allowed has been worked out is given in Annexure IX.

    ADVANCE AGAINST DEPRECIATION

    21. 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

    22. 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.

    23. The petitioner has claimed Advance Against Depreciation in the following manner:

    (a) 1/10th of gross loan is worked out from the gross notional loan.

    (b) Cumulative loan as well as repayment of notional loan during the year have been considered.

    (c) Depreciation as claimed in the petition.

    24. Accordingly, in our calculation the Advance Against Depreciation has been worked as detailed below:

    (a) 1/10th of gross loan is worked out from the Gross Notional Loan as per Annexure-IV.

    (b) Repayment of notional loan during the year is considered as per Annexure-IV.

    (c) Depreciation is worked out as per Annexure-IX.

    (d) In the calculation of Advance Against Depreciation, cumulative depreciation/Advance Against Depreciation up to the preceding year along with the depreciation of the current year have been considered for working out the Advance Against Depreciation. Therefore the figure of cumulative depreciation/Advance Against Depreciation is different from the figure appearing under the similar head elsewhere in tariff calculations where Advance Against Depreciation for the current year is also included for 90% restriction of the depreciation.

    25. Details of Advance Against Depreciation allowed are given is given in Annexure-X

    OPERATION & MAINTENANCE EXPENSES

    26. 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

    27. O&M expenses as taken for the tariff calculations as per the previous tariff orders have been considered, since line length and number of bays remain unchanged.

    INTEREST ON WORKING CAPITAL

    28. 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. The petitioner has claimed maintenance spares after accounting for additional capital expenditure. Maintenance spares as considered in the previous tariff orders have been considered.

    (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. O&M expenses as considered in the previous tariff orders have been considered.

    (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. Accordingly, in the tariff being allowed, receivables have been worked out on the basis 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 1 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 @ 10.25% based on SBI PLR as on 1 April of the year of commercial operation of the respective transmission asset, which is in accordance with the 2004 regulations and has been allowed.

    29. The necessary computations in support of interest on working capital is given in Annexure-XI

    TRANSMISSION CHARGES

    30. The revised transmission charges being allowed for the transmission assets are given in Annexure XII.

    31. The petitioner shall recover from the beneficiaries the additional transmission charges for the period up to 31.3.2009 in six monthly instalments. The petitioner has also sought reimbursement of filing fee of Rs. one lakh paid. The Commission by its separate general order dated 11.9.2008 in Petition No. 129/2005 (suo motu) has decided that the petitioner shall not be allowed reimbursement of the petition filing fee.

    32. 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. These transmission charges shall be included in the regional transmission tariff for Southern Region and shall be shared by the regional beneficiaries in accordance with the 2004 regulations.

    33. This order disposes of Petition No. 113/2008.

    Asset-I Asset-II Asset-III Asset-IV 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2005-2006 2006-2007 2007-2008 2008-2009 Depreciation 100.91 242.18 242.18 242.18 242.18 18.13 217.53 217.53 217.53 217.53 126.83 126.83 126.83 126.83 126.83 169.39 191.07 191.07 191.07 Interest on Loan 125.80 294.47 282.40 268.37 253.36 25.04 294.60 282.97 269.98 255.68 138.88 133.89 128.36 122.18 115.68 226.63 244.35 234.61 224.35 Return on Equity 108.58 260.58 260.58 260.58 260.58 21.09 253.13 253.13 253.13 253.13 129.62 129.62 129.62 129.62 129.62 200.23 226.90 226.90 226.90 Advance against Depreciation 0.00 0.00 54.86 79.66 107.66 0.00 0.00 29.55 51.20 82.96 0.00 0.00 0.00 5.34 23.23 0.00 0.00 0.00 20.67 Interest on Working Capital 11.42 27.66 29.16 30.13 31.20 2.21 26.70 27.72 28.60 29.70 14.00 14.29 14.60 15.01 15.66 19.50 21.99 22.38 23.16 O & M Expenses 61.50 153.49 159.86 165.90 172.87 15.25 190.32 198.11 205.75 214.24 89.06 92.62 96.41 100.13 104.26 109.04 123.85 128.57 133.93 Total 408.20 978.38 1029.04 1046.82 1067.85 81.72 982.29 1009.01 1026.19 1053.24 498.39 497.25 495.82 499.10 515.28 724.79 808.16 803.52 820.07
    2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2005-2006 2006-2007 2007-2008 2008-2009 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2006-2007 2007-2008 2008-2009 Depreciation 0.74 3.55 3.55 3.55 3.55 8.79 18.32 19.06 19.06 126.91 126.99 126.99 126.99 126.99 2.08 4.63 5.11 Interest on Loan 0.83 3.91 3.74 3.55 3.35 9.67 19.74 19.70 18.67 141.70 141.38 137.91 131.26 124.26 2.53 5.56 5.92 Return on Equity 1.21 5.80 5.80 5.80 5.80 12.34 25.82 26.97 26.97 127.83 128.13 128.13 128.13 128.13 3.17 7.12 7.90 Advance against Depreciation 0.00 0.00 0.38 0.71 1.08 0.00 0.00 0.59 2.88 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Interest on Working Capital 0.08 0.38 0.39 0.40 0.41 0.84 1.77 1.88 1.95 14.19 14.58 14.93 15.25 15.59 0.21 0.48 0.54 O & M Expenses 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 89.06 92.62 96.41 100.13 104.26 0.00 0.00 0.00 Total 2.86 13.63 13.86 14.01 14.20 31.64 65.65 68.20 69.53 499.69 503.70 504.37 501.76 499.23 7.99 17.79 19.46
    Year Amount (Rs. in lakh) Nature and details of expenditure Year Amount (Rs. in lakh) Nature and details of expenditure Year Amount (Rs. in lakh) Nature and details of expenditure Year Amount (Rs. in lakh) Nature and details of expenditure 2004-2005 Transmission line= 137.79 Substation = 0.28 Total = 138.07 retention payments 2005-2006 Transmission line= 347.71 Substation = 239.88 Total = 587.59 Compensation, PV, Retention, erection and additional taxes and duties Payments 2004-2005 Substation = 4.23 Towards retention payments and admitted vide order dated 5.5.2006 in Petition No. 128/2005 2006-2007 Transmission line= 124.60 Sub-station= 26.34 Total = 151.02 Balance payments 2006-2007 Transmission line= 46.28 Sub-station= 8.27 Total = 54.55 Compensation, PV, Retention, erection and additional taxes and duties Payments 2007-2008 Transmission line= 37.07 Balance payments
    Asset-I Asset-II Asset-III Asset-IV 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2005-2006 2006-2007 2007-2008 2008-2009 Opening Gross Normative Loan 7310.78 7407.43 7407.43 7407.43 7407.43 6240.12 6240.12 6651.43 6689.62 6689.62 3728.75 3731.71 3731.71 3731.71 3731.71 5088.01 5370.24 5475.95 5501.90 Cumulative Repayment up to Previous Year/date of commercial operation 2.92 104.57 350.30 650.78 976.44 1.75 19.88 246.20 508.61 796.06 0.00 126.91 253.89 383.94 523.44 3.08 172.47 365.62 561.33 Net Loan-Opening 7307.86 7302.86 7057.13 6756.65 6430.99 6238.37 6220.24 6405.24 6181.01 5893.55 3728.75 3604.80 3477.82 3347.77 3208.27 5084.93 5197.76 5110.33 4940.57 Addition due to Additional Capitalisation 96.65 0.00 411.31 38.19 2.96 282.23 105.71 25.95 Repayment during the year 101.65 245.73 300.49 325.65 354.08 18.13 226.32 262.41 287.45 321.07 126.91 126.98 130.05 139.50 150.17 169.39 193.15 195.70 217.24 Net Loan-Closing 7302.86 7057.13 6756.65 6430.99 6076.91 6220.24 6405.24 6181.01 5893.55 5572.48 3604.80 3477.82 3347.77 3208.27 3058.09 5197.76 5110.33 4940.57 4723.33 Average Loan 7305.36 7180.00 6906.89 6593.82 6253.95 6229.31 6312.74 6293.12 6037.28 5733.02 3666.78 3541.31 3412.79 3278.02 3133.18 5141.34 5154.04 5025.45 4831.95 Weighted Average Rate of Interest on Loan 4.1602% 4.1510% 4.1340% 4.1158% 4.0973% 4.8234% 4.81% 4.79% 4.78% 4.76% 3.7890% 3.7838% 3.7641% 3.7301% 3.6951% 4.81% 4.79% 4.78% 4.76% Interest 126.63 298.04 285.53 271.39 256.25 25.04 303.37 301.14 288.32 273.17 138.93 133.99 128.46 122.27 115.77 226.63 246.83 240.07 230.17

    Annexure-V

    CALCULATION OF WEIGHTED AVERAGE RATE OF INTEREST ON LOAN

    (i) 400 kV Ramagundam-Hyderabad D/C transmission line

    Details of Loan 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Bond X Gross Loan opening 35.00 35.00 35.00 35.00 35.00 Cumulative Repayment upto DOCO/previous year 2.92 2.92 5.84 8.75 11.67 Net Loan-Opening 32.08 32.08 29.16 26.25 23.33 Repayment during the year 0.00 2.92 2.92 2.92 2.92 Net Loan-Closing 32.08 29.16 26.25 23.33 20.41 Average Loan 32.08 30.62 27.71 24.79 21.87 Rate of Interest 10.90% 10.90% 10.90% 10.90% 10.90% Interest 3.50 3.34 3.02 2.70 2.38 Repayment Schedule 12 Annual instalments from 21.06.2004 Bond XI Option-I Gross Loan opening 37.00 37.00 37.00 37.00 37.00 Cumulative Repayment upto DOCO/previous year 0.00 0.00 3.08 6.17 9.25 Net Loan-Opening 37.00 37.00 33.92 30.83 27.75 Repayment during the year 0.00 3.08 3.08 3.08 3.08 Net Loan-Closing 37.00 33.92 30.83 27.75 24.67 Average Loan 37.00 35.46 32.38 29.29 26.21 Rate of Interest 9.80% 9.80% 9.80% 9.80% 9.80% Interest 3.63 3.47 3.17 2.87 2.57 Repayment Schedule 12 Annual Installments fromb 07.12.05 Bond-XII Gross Loan opening 3.00 3.00 3.00 3.00 3.00 Cumulative Repayment upto DOCO/previous year 0.00 0.00 0.25 0.50 0.75 Net Loan-Opening 3.00 3.00 2.75 2.50 2.25 Repayment during the year 0.00 0.25 0.25 0.25 0.25 Net Loan-Closing 3.00 2.75 2.50 2.25 2.00 Average Loan 3.00 2.88 2.63 2.38 2.13 Rate of Interest 9.70% 9.70% 9.70% 9.70% 9.70% Interest 0.29 0.28 0.25 0.23 0.21 Repayment Schedule 12 Annual Instalments from 28.03.2006 Bond XIII Option I Gross Loan opening 515.00 515.00 515.00 515.00 515.00 Cumulative Repayment upto DOCO/previous year 0.00 0.00 0.00 42.92 85.83 Net Loan-Opening 515.00 515.00 515.00 472.08 429.17 Repayment during the year 0.00 0.00 42.92 42.92 42.92 Net Loan-Closing 515.00 515.00 472.08 429.17 386.25 Average Loan 515.00 515.00 493.54 450.63 407.71 Rate of Interest 8.63% 8.63% 8.63% 8.63% 8.63% Interest 44.44 44.44 42.59 38.89 35.19 Repayment Schedule 12 Annual Instalments from 31.07.2006 PNB-II Gross Loan opening 21.00 21.00 21.00 21.00 21.00 Cumulative Repayment upto DOCO/previous year 0.00 1.75 3.50 5.25 7.00 Net Loan-Opening 21.00 19.25 17.50 15.75 14.00 Repayment during the year 1.75 1.75 1.75 1.75 1.75 Net Loan-Closing 19.25 17.50 15.75 14.00 12.25 Average Loan 20.13 18.38 16.63 14.88 13.13 Rate of Interest 8.60% 8.60% 8.60% 8.60% 8.60% Interest 1.73 1.58 1.43 1.28 1.13 Repayment Schedule 12 Annual Instalments from 08.03.2005 OBC Gross Loan opening 17.00 17.00 17.00 17.00 17.00 Cumulative Repayment upto DOCO/previous year 0.00 1.42 2.83 4.25 5.67 Net Loan-Opening 17.00 15.58 14.17 12.75 11.33 Repayment during the year 1.42 1.42 1.42 1.42 1.42 Net Loan-Closing 15.58 14.17 12.75 11.33 9.92 Average Loan 16.29 14.88 13.46 12.04 10.63 Rate of Interest 8.60% 8.60% 8.60% 8.60% 8.60% Interest 1.40 1.28 1.16 1.04 0.91 Repayment Schedule 12 Annual Instalments from 22.03.2005 ADB-II uv Gross Loan opening 114.94 114.94 114.94 114.94 114.94 Cumulative Repayment upto DOCO/previous year 0.00 0.00 0.00 3.17 6.66 Net Loan-Opening 114.94 114.94 114.94 111.77 108.27 Repayment during the year 0.00 0.00 3.17 3.49 3.85 Net Loan-Closing 114.94 114.94 111.77 108.27 104.42 Average Loan 114.94 114.94 113.35 110.02 106.35 Rate of Interest 7.47% 7.47% 7.47% 7.47% 7.47% Interest 8.59 8.59 8.47 8.22 7.94 Repayment Schedule 15 Half yearly instalments from 15.06.2006 ADB-II LB Gross Loan opening 6567.84 6567.84 6567.84 6567.84 6567.84 Cumulative Repayment upto DOCO/previous year 0.00 0.00 0.00 255.63 536.91 Net Loan-Opening 6567.84 6567.84 6567.84 6312.21 6030.93 Repayment during the year 0.00 0.00 255.63 281.28 310.23 Net Loan-Closing 6567.84 6567.84 6312.21 6030.93 5720.70 Average Loan 6567.84 6567.84 6440.02 6171.57 5875.81 Rate of Interest 3.66% 3.66% 3.66% 3.66% 3.66% Interest 240.38 240.38 235.70 225.88 215.05 Repayment Schedule 15 Half yearly Instalments from 15.06.2006 ADB-II LB (for ACE) Gross Loan opening 0.00 0.00 138.07 138.07 138.07 Cumulative Repayment upto DOCO/previous year 0.00 0.00 0.00 5.37 11.28 Net Loan-Opening 0.00 0.00 138.07 132.70 126.79 Additions during the year 0.00 138.07 Repayment during the year 0.00 0.00 5.37 5.91 6.52 Net Loan-Closing 0.00 138.07 132.70 126.79 120.27 Average Loan 0.00 69.04 135.39 129.75 123.53 Rate of Interest 3.66% 3.66% 3.66% 3.66% 3.66% Interest 0.00 2.53 4.96 4.75 4.52 Repayment Schedule 15 Half yearly Instalments from 15.06.2006 Total Loan Gross Loan opening 7310.78 7310.78 7448.85 7448.85 7448.85 Cumulative Repayment upto DOCO/previous year 2.92 6.09 15.50 332.01 675.02 Net Loan-Opening 7307.86 7304.69 7433.34 7116.84 6773.82 Additions during the year 0.00 138.07 0.00 0.00 0.00 Repayment during the year 3.17 9.42 316.50 343.02 372.94 Net Loan-Closing 7304.69 7433.34 7116.84 6773.82 6400.89 Average Loan 7306.27 7369.02 7275.09 6945.33 6587.36 Rate of Interest 4.16% 4.15% 4.13% 4.12% 4.10% Interest 303.96 305.89 300.75 285.85 269.91

    Annexure-VI

    (ii) 400 kV S/C Hyderabad-Kurnool-Gooty transmission line

    Details of Loan 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 1 Bond X Gross Loan opening 21.00 21.00 21.00 21.00 21.00 Cumulative Repayment upto DOCO/previous year 1.75 1.75 3.50 5.25 7.00 Net Loan-Opening 19.25 19.25 17.50 15.75 14.00 Repayment during the year 0.00 1.75 1.75 1.75 1.75 Net Loan-Closing 19.25 17.50 15.75 14.00 12.25 Average Loan 19.25 18.38 16.63 14.88 13.13 Rate of Interest 10.90% 10.90% 10.90% 10.90% 10.90% Interest 2.10 2.00 1.81 1.62 1.43 Repayment Schedule 12 Annual instalments from 21.06.2004 2 Bond XI Option-I Gross Loan opening 23.00 23.00 23.00 23.00 23.00 Cumulative Repayment upto DOCO/previous year 0.00 0.00 1.92 3.83 5.75 Net Loan-Opening 23.00 23.00 21.08 19.17 17.25 Repayment during the year 0.00 1.92 1.92 1.92 1.92 Net Loan-Closing 23.00 21.08 19.17 17.25 15.33 Average Loan 23.00 22.04 20.13 18.21 16.29 Rate of Interest 9.80% 9.80% 9.80% 9.80% 9.80% Interest 2.25 2.16 1.97 1.78 1.60 Repayment Schedule 12 Annual Installments from 07.12.05 3 Bond-XII Gross Loan opening 2.00 2.00 2.00 2.00 2.00 Cumulative Repayment upto DOCO/previous year 0.00 0.00 0.17 0.33 0.50 Net Loan-Opening 2.00 2.00 1.83 1.67 1.50 Repayment during the year 0.00 0.17 0.17 0.17 0.17 Net Loan-Closing 2.00 1.83 1.67 1.50 1.33 Average Loan 2.00 1.92 1.75 1.58 1.42 Rate of Interest 9.70% 9.70% 9.70% 9.70% 9.70% Interest 0.19 0.19 0.17 0.15 0.14 Repayment Schedule 12 Annual Instalments from 28.03.2006 4 Bond XIII Option I Gross Loan opening 320.00 320.00 320.00 320.00 320.00 Cumulative Repayment upto DOCO/previous year 0.00 0.00 0.00 26.67 53.33 Net Loan-Opening 320.00 320.00 320.00 293.33 266.67 Repayment during the year 0.00 0.00 26.67 26.67 26.67 Net Loan-Closing 320.00 320.00 293.33 266.67 240.00 Average Loan 320.00 320.00 306.67 280.00 253.33 Rate of Interest 8.63% 8.63% 8.63% 8.63% 8.63% Interest 27.62 27.62 26.47 24.16 21.86 Repayment Schedule 12 Annual Instalments from 31.07.2006 5 Bond XVI Gross Loan opening 76.00 76.00 76.00 76.00 76.00 Cumulative Repayment upto DOCO/previous year 0.00 0.00 0.00 0.00 0.00 Net Loan-Opening 76.00 76.00 76.00 76.00 76.00 Repayment during the year 0.00 0.00 0.00 0.00 7.60 Net Loan-Closing 76.00 76.00 76.00 76.00 68.40 Average Loan 76.00 76.00 76.00 76.00 72.20 Rate of Interest as on DOCO 7.10% 7.10% 7.10% 7.10% 7.10% Interest 5.40 5.40 5.40 5.40 5.13 Repayment Schedule 10 Annual Instalments from 18.02.2009 6 PNB-II Gross Loan opening 13.00 13.00 13.00 13.00 13.00 Cumulative Repayment upto DOCO/previous year 0.00 1.08 2.17 3.25 4.33 Net Loan-Opening 13.00 11.92 10.83 9.75 8.67 Repayment during the year 1.08 1.08 1.08 1.08 1.08 Net Loan-Closing 11.92 10.83 9.75 8.67 7.58 Average Loan 12.46 11.38 10.29 9.21 8.13 Rate of Interest 8.60% 8.60% 8.60% 8.60% 8.60% Interest 1.07 0.98 0.89 0.79 0.70 Repayment Schedule 12 Annual Instalments from 08.03.2005 7 OBC Gross Loan opening 11.00 11.00 11.00 11.00 11.00 Cumulative Repayment upto DOCO/previous year 0.00 0.92 1.83 2.75 3.67 Net Loan-Opening 11.00 10.08 9.17 8.25 7.33 Repayment during the year 0.92 0.92 0.92 0.92 0.92 Net Loan-Closing 10.08 9.17 8.25 7.33 6.42 Average Loan 10.54 9.63 8.71 7.79 6.88 Rate of Interest 8.60% 8.60% 8.60% 8.60% 8.60% Interest 0.91 0.83 0.75 0.67 0.59 Repayment Schedule 12 Annual Instalments from 22.03.2005 8 ADB-II uv Gross Loan opening 68.656 68.66 68.66 68.66 68.66 Cumulative Repayment upto DOCO/previous year 0.00 0.00 0.00 1.89 3.98 Net Loan-Opening 68.66 68.66 68.66 66.76 64.68 Repayment during the year 0.00 0.00 1.89 2.09 2.30 Net Loan-Closing 68.66 68.66 66.76 64.68 62.37 Average Loan 68.66 68.66 67.71 65.72 63.52 Rate of Interest 7.49% 7.49% 7.49% 7.49% 7.49% Interest 5.14 5.14 5.07 4.92 4.76 Repayment Schedule 15 Half yearly instalments from 15.06.2006 9 ADB-II LB Gross Loan opening 5705.46 5705.46 5705.46 5705.46 5705.46 Cumulative Repayment upto DOCO/previous year 0.00 0.00 0.00 222.07 466.41 Net Loan-Opening 5705.46 5705.46 5705.46 5483.39 5239.05 Repayment during the year 0.00 0.00 222.07 244.34 269.50 Net Loan-Closing 5705.46 5705.46 5483.39 5239.05 4969.55 Average Loan 5705.46 5705.46 5594.42 5361.22 5104.30 Rate of Interest 4.49% 4.49% 4.49% 4.49% 4.49% Interest 256.17 256.17 251.19 240.72 229.18 Repayment Schedule 15 Half yearly Instalments from 15.06.2006 10 ADB-II LB (for ACE) ss Loan opening 0.00 0.00 587.59 587.59 587.59 Cumulative Repayment upto DOCO/previous year 0.00 0.00 0.00 22.87 48.03 Net Loan-Opening 0.00 0.00 587.59 564.72 539.56 Additions during the year 0.00 587.59 0.00 0.00 0.00 Repayment during the year 0.00 0.00 22.87 25.16 27.76 Net Loan-Closing 0.00 587.59 564.72 539.56 511.80 Average Loan 0.00 293.80 576.16 552.14 525.68 Rate of Interest 4.49% 4.49% 4.49% 4.49% 4.49% Interest 0.00 13.19 25.87 24.79 23.60 Repayment Schedule 15 Half yearly Instalments from 15.06.2006 Total Loan Gross Loan opening 6240.11 6240.11 6827.70 6827.70 6827.70 Cumulative Repayment upto DOCO/previous year 1.75 3.75 9.58 288.91 593.00 Net Loan-Opening 6238.36 6236.36 6818.12 6538.79 6234.70 Additions during the year 0.00 587.59 0.00 0.00 0.00 Repayment during the year 2.00 5.83 279.33 304.09 339.66 Net Loan-Closing 6236.36 6818.12 6538.79 6234.70 5895.04 Average Loan 6237.36 6527.24 6678.45 6386.74 6064.87 Rate of Interest 4.82% 4.81% 4.79% 4.78% 4.76% Interest 300.85 313.68 319.58 305.01 288.99

    Annexure-VII

    (iii) 400 kV S/C Khammam-Nagarjunasagar line

    (Rs. in lakh)

    Details of Loan 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 1 Bond-X Net Loan-Opening 15.00 13.75 12.50 11.25 10.00 Repayment during the year 1.25 1.25 1.25 1.25 1.25 Net Loan-Closing 13.75 12.50 11.25 10.00 8.75 Average Loan 14.38 13.13 11.88 10.63 9.38 Rate of Interest 10.90% 10.90% 10.90% 10.90% 10.90% Interest 1.57 1.43 1.29 1.16 1.02 Repayment Schedule 12 Annual instalments from 21.06.2004 2 Bond-XI Option-1 Net Loan-Opening 16.00 16.00 14.67 13.33 12.00 Repayment during the year 0.00 1.33 1.33 1.33 1.33 Net Loan-Closing 16.00 14.67 13.33 12.00 10.67 Average Loan 16.00 15.33 14.00 12.67 11.33 Rate of Interest 9.80% 9.80% 9.80% 9.80% 9.80% Interest 1.57 1.50 1.37 1.24 1.11 Repayment Schedule 12 Annual instalments from 7.12.2005 3 Bond-XII Net Loan-Opening 1.00 1.00 0.92 0.83 0.75 Repayment during the year 0.00 0.08 0.08 0.08 0.08 Net Loan-Closing 1.00 0.92 0.83 0.75 0.67 Average Loan 1.00 0.96 0.88 0.79 0.71 Rate of Interest 9.70% 9.70% 9.70% 9.70% 9.70% Interest 0.10 0.09 0.08 0.08 0.07 Repayment Schedule 12 Annual instalments from 28.03.2006 4 Bond XIII Option I Net Loan-Opening 412.00 412.00 412.00 377.67 343.33 Repayment during the year 0.00 0.00 34.33 34.33 34.33 Net Loan-Closing 412.00 412.00 377.67 343.33 309.00 Average Loan 412.00 412.00 394.83 360.50 326.17 Rate of Interest 8.63% 8.63% 8.63% 8.63% 8.63% Interest 35.56 35.56 34.07 31.11 28.15 Repayment Schedule 12 Annual Instalments from 31.07.2006 5 OBC Net Loan-Opening 7.00 6.42 5.83 5.25 4.67 Repayment during the year 0.58 0.58 0.58 0.58 0.58 Net Loan-Closing 6.42 5.83 5.25 4.67 4.08 Average Loan 6.71 6.13 5.54 4.96 4.38 Rate of Interest 8.60% 8.60% 8.60% 8.60% 8.60% Interest 0.58 0.53 0.48 0.43 0.38 Repayment Schedule 12 Annual instalments from 22.03.2005 6 PNB-II Net Loan-Opening 9.00 8.25 7.50 6.75 6.00 Repayment during the year 0.75 0.75 0.75 0.75 0.75 Net Loan-Closing 8.25 7.50 6.75 6.00 5.25 Average Loan 8.63 7.88 7.13 6.38 5.63 Rate of Interest 8.60% 8.60% 8.60% 8.60% 8.60% Interest 0.74 0.68 0.61 0.55 0.48 Repayment Schedule 12 Annual instalments from 08.03.2005 7 ADB-II uv Net Loan-Opening 46.53 46.53 46.53 45.24 43.83 Repayment during the year 0.00 0.00 1.28 1.41 1.56 Net Loan-Closing 46.53 46.53 45.24 43.83 42.27 Average Loan 46.53 46.53 45.88 44.54 43.05 7.51% 7.51% 7.51% 7.51% 7.51% Interest 3.49 3.49 3.45 3.34 3.23 Repayment Schedule Half yearly instalments from 15.06.2006 8 ADB-II lb Net Loan-Opening 3222.22 3222.22 3222.22 3122.66 3013.10 Repayment during the year 0.00 0.00 99.57 109.56 120.83 Net Loan-Closing 3222.22 3222.22 3122.66 3013.10 2892.27 Average Loan 3222.22 3222.22 3172.44 3067.88 2952.68 3.03% 3.03% 3.03% 3.03% 3.03% Interest 97.63 97.63 96.12 92.96 89.47 Repayment Schedule Half yearly instalments from 15.06.2006 Total Loan Net Loan-Opening 3728.75 3726.17 3722.17 3582.98 3433.68 Repayment during the year 2.58 4.00 139.18 149.30 160.73 Net Loan-Closing 3726.17 3722.17 3582.98 3433.68 3272.95 Average Loan 3727.46 3724.17 3652.57 3508.33 3353.32 Rate of Interest 3.79% 3.78% 3.76% 3.73% 3.70% Interest 141.23 140.91 137.49 130.86 123.91

    Annexure-VIII

    (iv) 400 kV S/C Gooty-Neelmangla transmission line

    Details of Loan 2005-2006 2006-2007 2007-2008 2008-2009 1 Bond-X Gross Loan opening 18.00 18.00 18.00 18.00 Cumulative Repayment upto DOCO/previous year 1.50 3.00 4.50 6.00 Net Loan-Opening 16.50 15.00 13.50 12.00 Additions during the year 0.00 0.00 0.00 0.00 Repayment during the year 1.50 1.50 1.50 1.50 Net Loan-Closing 15.00 13.50 12.00 10.50 Average Loan 15.75 14.25 12.75 11.25 Rate of Interest 10.90% 10.90% 10.90% 10.90% Interest 1.72 1.55 1.39 1.23 Repayment Schedule 12 Annual instalments from 21.06.2004 2 Bond-XI Option-I Gross Loan opening 19.00 19.00 19.00 19.00 Cumulative Repayment upto DOCO/previous year 0.00 1.58 3.17 4.75 Net Loan-Opening 19.00 17.42 15.83 14.25 Additions during the year 0.00 0.00 0.00 0.00 Repayment during the year 1.58 1.58 1.58 1.58 Net Loan-Closing 17.42 15.83 14.25 12.67 Average Loan 18.21 16.63 15.04 13.46 Rate of Interest 9.80% 9.80% 9.80% 9.80% Interest 1.78 1.63 1.47 1.32 Repayment Schedule 12 Annual instalments from 07.12.2005 3 Bond-XII Gross Loan opening 1.00 1.00 1.00 1.00 Cumulative Repayment upto DOCO/previous year 0.00 0.08 0.17 0.25 Net Loan-Opening 1.00 0.92 0.83 0.75 Additions during the year 0.00 0.00 0.00 0.00 Repayment during the year 0.08 0.08 0.08 0.08 Net Loan-Closing 0.92 0.83 0.75 0.67 Average Loan 0.96 0.88 0.79 0.71 Rate of Interest 9.70% 9.70% 9.70% 9.70% Interest 0.09 0.08 0.08 0.07 Repayment Schedule 12 Annual instalments from 28.03.2006 4 Bond-XIII Option-I Gross Loan opening 261.00 261.00 261.00 261.00 Cumulative Repayment upto DOCO/previous year 0.00 0.00 21.75 43.50 Net Loan-Opening 261.00 261.00 239.25 217.50 Additions during the year 0.00 0.00 0.00 0.00 Repayment during the year 0.00 21.75 21.75 21.75 Net Loan-Closing 261.00 239.25 217.50 195.75 Average Loan 261.00 250.13 228.38 206.63 Rate of Interest 8.63% 8.63% 8.63% 8.63% Interest 22.52 21.59 19.71 17.83 Repayment Schedule 12 Annual instalments from 31.07.2006 5 Bond-XVI Gross Loan opening 63.00 63.00 63.00 63.00 Cumulative Repayment upto DOCO/previous year 0.00 0.00 0.00 0.00 Net Loan-Opening 63.00 63.00 63.00 63.00 Additions during the year 0.00 0.00 0.00 0.00 Repayment during the year 0.00 0.00 0.00 6.30 Net Loan-Closing 63.00 63.00 63.00 56.70 Average Loan 63.00 63.00 63.00 59.85 Rate of Interest 7.10% 7.10% 7.10% 7.10% Interest 4.47 4.47 4.47 4.25 Repayment Schedule 10 Annual instalments from 18-02-2009 6 PNB-II Gross Loan opening 10.00 10.00 10.00 10.00 Cumulative Repayment upto DOCO/previous year 0.83 1.67 2.50 3.33 Net Loan-Opening 9.17 8.33 7.50 6.67 Additions during the year 0.00 0.00 0.00 0.00 Repayment during the year 0.83 0.83 0.83 0.83 Net Loan-Closing 8.33 7.50 6.67 5.83 Average Loan 8.75 7.92 7.08 6.25 Rate of Interest 8.60% 8.60% 8.60% 8.60% Interest 0.75 0.68 0.61 0.54 Repayment Schedule 12 Annual Instalments from 08.3.2005 7 OBC Gross Loan opening 9.00 9.00 9.00 9.00 Cumulative Repayment upto DOCO/previous year 0.75 1.50 2.25 3.00 Net Loan-Opening 8.25 7.50 6.75 6.00 Additions during the year 0.00 0.00 0.00 0.00 Repayment during the year 0.75 0.75 0.75 0.75 Net Loan-Closing 7.50 6.75 6.00 5.25 Average Loan 7.88 7.13 6.38 5.63 Rate of Interest 8.60% 8.60% 8.60% 8.60% Interest 0.68 0.61 0.55 0.48 Repayment Schedule 12 Annual Instalments from 22.03.2005 8 ADB-II uv Gross Loan opening 56.17 56.17 56.17 56.17 Cumulative Repayment upto DOCO/previous year 0.00 0.00 1.55 3.26 Net Loan-Opening 56.17 56.17 54.62 52.91 Additions during the year 0.00 0.00 0.00 0.00 Repayment during the year 0.00 1.55 1.71 1.88 Net Loan-Closing 56.17 54.62 52.91 51.03 Average Loan 56.17 55.39 53.76 51.97 Rate of Interest 7.49% 7.49% 7.49% 7.49% Interest 4.21 4.15 4.03 3.89 Repayment Schedule Half yearly Instalments from 15.06.2006 9 ADB-II LB Gross Loan opening 4650.84 4650.84 4650.84 4650.84 Cumulative Repayment upto DOCO/previous year 0.00 0.00 143.71 301.84 Net Loan-Opening 4650.84 4650.84 4507.13 4349.00 Additions during the year 0.00 0.00 0.00 0.00 Repayment during the year 0.00 143.71 158.13 174.41 Net Loan-Closing 4650.84 4507.13 4349.00 4174.60 Average Loan 4650.84 4578.99 4428.07 4261.80 Rate of Interest 4.49% 4.49% 4.49% 4.49% Interest 208.82 205.60 198.82 191.35 Repayment Schedule Half yearly Instalments from 15.06.2006 10 ADB-II LB (for ACE): Drawl on 24-6-2005 Gross Loan opening 0.00 0.00 0.00 0.00 Cumulative Repayment upto DOCO/previous year 0.00 0.00 12.46 26.17 Net Loan-Opening 0.00 403.18 390.72 377.01 Additions during the year 403.18 0.00 0.00 0.00 Repayment during the year 0.00 12.46 13.71 15.12 Net Loan-Closing 403.18 390.72 377.01 361.89 Average Loan 201.59 396.95 383.87 369.45 Rate of Interest 4.49% 4.49% 4.49% 4.49% Interest 9.05 17.82 17.24 16.59 Repayment Schedule Half yearly Instalments from 15.06.2006 Total Loan Gross Loan opening 5088.01 5088.01 5088.01 5088.01 Cumulative Repayment upto DOCO/previous year 3.08 7.83 192.05 392.10 Net Loan-Opening 5084.92 5483.35 5299.14 5099.09 Additions during the year 403.18 0.00 0.00 0.00 Repayment during the year 4.75 184.22 200.04 224.21 Net Loan-Closing 5483.35 5299.14 5099.09 4874.88 Average Loan 5284.14 5391.25 5199.11 4986.99 Rate of Interest 4.81% 4.79% 4.78% 4.76% Interest 254.10 258.19 248.36 237.55

    Annexure-IX

    Asset-I Asset-II Asset-III Asset-IV 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2005-2006 2006-2007 2007-2008 2008-2009 Rate of Depreciation 2.6399% 2.6394% 2.6394% 2.6394% 2.6394% 2.7029% 2.7130% 2.7225% 2.7225% 2.7225% 2.7253% 2.7257% 2.7257% 2.7257% 2.7257% 2.7218% 2.7333% 2.7331% 2.7327% Depreciable Value (Rs. in lakh) 8317.02 8379.15 8379.15 8379.15 8379.15 7243.38 7507.80 7796.76 7821.31 7821.31 4191.03 4192.93 4192.93 4192.93 4192.93 6110.41 6359.80 6444.44 6461.12 Balance Useful life of the asset — — — — — — — — — — — — — — — — — — — Remaining Depreciable Value (Rs. in lakh) 8317.02 8277.51 8031.78 7731.29 7405.64 7243.38 7489.67 7552.31 7314.44 7026.99 4180.69 4055.69 3928.71 3801.72 3669.49 6110.41 6190.40 6081.90 5902.87 Depreciation (Rs. in lakh) 101.65 245.73 245.73 245.73 245.73 18.13 226.32 235.85 236.59 236.59 126.91 126.98 126.98 126.98 126.98 169.39 193.15 195.70 196.18

    Annexure-X

    (Rs. in lakh)

    Asset-I Asset-II Asset-III Asset-IV 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2005-2006 2006-2007 2007-2008 2008-2009 1/10th of Gross Loan(s) 731.08 740.74 740.74 740.74 740.74 624.01 624.01 665.14 668.96 668.96 372.87 373.17 373.17 373.17 373.17 508.80 537.02 547.60 550.19 Repayment of the Loan 101.65 245.73 300.49 325.65 354.08 18.13 226.32 262.41 287.45 321.07 126.91 126.98 130.05 139.50 150.17 169.39 193.15 195.70 217.24 Minimum of the above 101.65 245.73 300.49 325.65 354.08 18.13 226.32 262.41 287.45 321.07 126.91 126.98 130.05 139.50 150.17 169.39 193.15 195.70 217.24 Depreciation during the year 101.65 245.73 245.73 245.73 245.73 18.13 226.32 235.85 236.59 236.59 126.91 126.98 126.98 126.98 126.98 169.39 193.15 195.70 196.18 (A) Difference 0.00 0.00 54.76 79.93 108.35 0.00 0.00 26.56 50.86 84.48 0.00 0.00 3.06 12.52 23.19 0.00 0.00 0.00 21.06 Cumulative Repayment of the Loan 104.57 350.30 650.78 976.44 1330.52 19.88 246.20 508.61 796.06 1117.14 126.91 253.89 383.94 523.44 673.61 172.47 365.62 561.33 778.56 Cumulative Depreciation/Advance against Depreciation 101.65 347.38 593.10 893.59 1219.24 18.13 244.45 480.30 743.45 1030.91 137.24 264.23 391.21 518.20 650.42 169.39 362.54 558.24 754.42 (B) Difference 2.92 2.92 57.68 82.85 111.27 1.75 1.75 28.31 52.61 86.23 -10.34 -10.34 -7.27 5.24 23.19 3.08 3.08 3.08 24.14 Advance against Depreciation Minimum of (A) and (B) 0.00 0.00 54.76 79.93 108.35 0.00 0.00 26.56 50.86 84.48 0.00 0.00 0.00 5.24 23.19 0.00 0.00 0.00 21.06

    Annexure-XI

    (Rs. in lakh)

    Asset-I Asset-II Asset-III Asset-IV 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2005-2006 2006-2007 2007-2008 2008-2009 Maintenance Spares 91.72 94.01 99.65 105.63 111.97 80.48 80.88 85.74 90.88 96.33 46.10 48.87 51.80 54.90 58.20 65.88 69.50 73.67 78.09 O & M expenses 12.30 12.79 13.32 13.83 14.41 15.25 15.86 16.51 17.15 17.85 7.42 7.72 8.03 8.34 8.69 9.91 10.32 10.71 11.16 Receivables 164.41 165.26 173.61 176.61 180.17 163.45 168.78 178.23 181.89 186.57 83.10 82.95 82.71 83.24 85.94 131.78 136.00 136.84 139.94 Total 268.43 272.06 286.58 296.07 306.54 259.18 265.53 280.47 289.92 300.76 136.62 139.53 142.54 146.49 152.83 207.57 215.82 221.22 229.19 Rate of Interest 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% Interest 11.46 27.89 29.37 30.35 31.42 2.21 27.22 28.75 29.72 30.83 14.00 14.30 14.61 15.02 15.67 19.50 22.12 22.68 23.49

    Annexure-XII

    (Rs. in lakh)

    Asset-I Asset-II Asset-III Asset-IV 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2005-2006 2006-2007 2007-2008 2008-2009 Depreciation 101.65 245.73 245.73 245.73 245.73 18.13 226.32 235.85 236.59 236.59 126.91 126.98 126.98 126.98 126.98 169.39 193.15 195.70 196.18 Interest on Loan 126.63 298.04 285.53 271.39 256.25 25.04 303.37 301.14 288.32 273.17 138.93 133.99 128.46 122.27 115.77 226.63 246.83 240.07 230.17 Return on Equity 109.79 266.38 266.38 266.38 266.38 21.09 265.47 278.96 280.10 280.10 129.71 129.79 129.79 129.79 129.79 200.23 230.07 234.02 234.80 Advance against Depreciation 0.00 0.00 54.76 79.93 108.35 0.00 0.00 26.56 50.86 84.48 0.00 0.00 0.00 5.24 23.19 0.00 0.00 0.00 21.06 Interest on Working Capital 11.46 27.89 29.37 30.35 31.42 2.21 27.22 28.75 29.72 30.83 14.00 14.30 14.61 15.02 15.67 19.50 22.12 22.68 23.49 O & M Expenses 61.50 153.49 159.86 165.90 172.87 15.25 190.32 198.11 205.75 214.24 89.06 92.62 96.41 100.13 104.26 109.04 123.85 128.57 133.93 Total 411.03 991.53 1041.64 1059.67 1081.00 81.72 1012.69 1069.37 1091.34 1119.42 498.61 497.70 496.26 499.44 515.67 724.79 816.02 821.03 839.62

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    Power Grid Corporation Of India Limited v. Karnataka Power Transmission Corporation Ltd.
    (Feb 3, 2009)