1. Power Grid Corporation of India Limited (PGCIL) has filed the instant petition for determination of transmission tariff from COD to 31.3.2019 forAsset 1-Part of 400 kV D/C Navsari Boisar transmission line from AP 18 to AP 38/0 through LILO point of 400 kV D/C Navsari Boisar at Magarwada GIS (23B/0) (D/C portion strung on M/C Twin-Twin portion comprising of 400 kV D/C Navsari-Boisar and 400 kV D/C Vapi-Kudus) and Part of 400 kV D/C Vapi-Kudus transmission line from AP 38/0 to AP 44 and Asset 2-Part of 400 kV D/C Vapi-Kudus transmission line from 104/0 to Kudus (MSETCL) Substation and associated bays at Kudus (MSETCL) Sub-stationunder “Western Region System Strengthening Scheme-V” (hereinafter referred to as “assets”) in Western Region in accordance with the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014 (hereinafter referred to as “the 2014 Tariff Regulations”). The petitioner has also prayed for grant of 90% of the Annual Fixed Charges (AFC) claimed, in terms of proviso (i) of Regulation 7(7) of the 2014 Tariff Regulations for inclusion in PoC mechanism.

2. As per the investment approval dated 30.11.2007, the scheduled COD of the instant assets was 15.10.2010 and 26.9.2011. However, Asset-I and Asset-II were put into commercial operation on 1.3.2015 and 31.12.2017 respectively. Hence, there is a time over run of 28 months 15 days and 54 months 4 days for Asset - 1 and Asset-2 respectively.

3. The details of the capital cost claimed by the petitioner are as follows:—

(Rs. in lakh)

Asset Apportioned approved Cost as per FR Apportioned Approved Cost as per RCE-II Anticipated Exp. Up to COD Projected Add Cap Total Estimated completion Cost as on 31.3.2019 2015-16 2016-17 2017-18 2018-19 1 1986.10 2850.00 2765.97 26.54 12.00 4.67 0.00 2809.18 2 17296.06 18948.00 17991.47 0.00 0.00 210.89 467.27 18669.63

5. There is no cost over-run in case of the instant assets when compared to the FR cost.

6. The matter was heard on 13.12.2018. The representative of the petitioner requested for grant Annual Fixed Charges (AFC) in terms of proviso (i) of Regulation 7(7) of the 2014 Tariff Regulations. He further submitted that DOCO letter, Auditor certificate, self-declaration certificate, RLDC certificate, CEA certificate and all the information as required under the 2014 Tariff Regulations have been furnished.

7. As per proviso (i) of Regulation 7(7) of the 2014 Tariff Regulations, the Commission may grant tariff upto 90% of the AFC of the transmission system or element thereof for the purpose of inclusion in POC charges in accordance with the Central Electricity Regulatory Commission (Sharing of Inter-State Transmission Charges and Losses), Regulation, 2010. Regulation 7(2) of the 2014 Tariff Regulations provides that the application for tariff should be made in accordance with the Central Electricity Regulatory Commission (Procedure for making of application for determination of tariff, publication of the application and other related matters) Regulations, 2004 (hereinafter referred to as “2004 Regulations”). Regulation 7(4) of the 2014 Tariff Regulations provides that such an application shall be filed as per Annexure-I of these regulations.

8. The petitioner has made the applications as per Annexure-I of the 2014 Tariff Regulations. The petitioner has also complied with the requirements of 2004 Regulations, such as service of the copy of the application on the beneficiaries, publication of notice and web hosting of the application, etc.

9. After carrying out preliminary prudence check of the AFC claimed by the petitioner for the assets and taking into consideration the time over-run which will be considered in detail at the time of issue of final order, the Commission has decided to allow tariff in terms of proviso (i) of Regulation 7(7) of the 2014 Tariff Regulations as given in paragraph 8 of this order.

10. The details of the tariff claimed by the petitioner and tariff awarded are as under:—

A. Annual transmission charges claimed by the petitioner are as follows:—

(Rs. in lakh)

Assets 2014-15 2015-16 2016-17 2017-18 2018-19 Asset-1 42.30 507.14 501.33 489.67 477.01 Asset-2 - - - 831.92 3325.11

B. Annual transmission charges allowed are given below:—

(Rs. in lakh)

Assets 2014-15 2015-16 2016-17 2017-18 2018-19 Asset-1 33.84 405.71 401.06 391.74 381.61 Asset-2 - - - 665.54 2660.09

11. The tariff allowed in this order shall be applicable from the actual CODs of instant assets and the billing, collection and disbursement of the transmission charges shall be governed by the provisions of Central Electricity Regulatory Commission (Sharing of Inter-State Transmission Charges and Losses) Regulations, 2010 as amended from time to time. Further, the transmission charges allowed in this order shall be subject to adjustment as per Regulation 7(7) of the 2014 Tariff Regulations.

12. The petitioner is directed to submit the following information on affidavit with an advance copy to the beneficiaries by 25.1.2019:—

(i) Status of COD of Kudus (MSETCL) Sub-station and its associated bays at Kudus (MSETCL) Sub-station along with documentary evidence in support thereof, if any.

(ii) Details of reasons for time over-run in a chronological order alongwith documentary evidence in the following format:—

Asset Activity Schedule Actual Reason(s) of delay From To From To Asset-1(Element) 400kV D/C Navasari-Boisar T/L Part of 400kV D/C Navasari-Boisar T/L from AP 18 to AP 38/0 LILO point of 400kV D/C Navasari-Boisar at Magarwada GIS(23B/0) Part of 400 kV D/C Navsari-Boisar T/L from AP 18 to AP 38/0 through LILO point of 400 kV D/C Navsari-Boisar at Magarwada GIS (23B/0) (D/C portion strung on M/C Twin-Twin portion comprising of 400 kV D/C Navsari-Boisar 400 kV D/C Vapi-Kudus Part of 400 kV D/C Vapi - Kudus T/L from AP 38/0 to AP 44 LOA change in termination point of 400 kV D/C Navsari - Mumbai (New location) to Boisar instead of Mumbai (New location) Shifting of Zero Date for the purpose of implementation of transmission Line Supplies of structure, equipment etc. Foundation Tower Erection Civil works and erection Testing and commissioning Forest proposal submission and clearance Row issues Any other reasons for delay, if any Asset-2(Element) 400 kV D/C Vapi - Kudus T/L Kudus (MSETCL) S/S and associated bays at Kudus (MSETCL) S/S Part of 400 kV D/C Vapi - Kudus T/L from 104/0 to Kudus (MSETCL) S/S and associated bays at Kudus (MSETCL) S/S LOA change in termination point of 400 kV D/C Navsari - Mumbai (New location) to Boisar instead of Mumbai (New location) Shifting of Zero Date for the purpose of implementation of transmission Line Supplies of structure, equipment etc. Foundation Tower Erection Civil works and erection Testing and commissioning Forest proposal submission and clearance Row issues Any other reasons for delay, if any

13. The Respondents are directed to file their reply by 4.2.2019 with an advance copy to the petitioner who shall file its rejoinder, if any by 11.2.2019. The parties shall comply with the above directions within the due date mentioned above and no extension of time shall be granted.

14. The next date of hearing will be intimated in due course of time.