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citation codes
Case Number
Attorney(S)
  • Shri S.S. Raju, Advocate for the , PGCIL
  • Shri R.B. Sharma, Advocate , BSP(H)CL
  • Shri Amit K. Jain, PGCIL
  • Shri Amit Yadav, PGCIL
  • Shri Mohit Mudgal, Advocate, BSP(H)CL
  • Ms. Neha Maniktal, Advocate, BSP(H)CL
Judges
  • P.K. Pujari
  • Chairperson
  • Dr. M.K. Iyer, Member
  • I.S. Jha, Member
Acts
  • Section 28(4) and Section 79(1)(d) of Electricity Act, 2003 (hereinafter referred to as the Act) and Regulation 86 of Central Electricity Regulatory Commission (Conduct of Business) Regulations, 1999
  • section 79(1)(d)
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
  • Shri S.S. Raju, Advocate for the , PGCIL
  • Shri R.B. Sharma, Advocate , BSP(H)CL
  • Shri Amit K. Jain, PGCIL
  • Shri Amit Yadav, PGCIL
  • Shri Mohit Mudgal, Advocate, BSP(H)CL
  • Ms. Neha Maniktal, Advocate, BSP(H)CL
Judges
  • P.K. Pujari
  • Chairperson
  • Dr. M.K. Iyer, Member
  • I.S. Jha, Member
Acts
  • Section 28(4) and Section 79(1)(d) of Electricity Act, 2003 (hereinafter referred to as the Act) and Regulation 86 of Central Electricity Regulatory Commission (Conduct of Business) Regulations, 1999
  • section 79(1)(d)
See more information ...
Smart Summary

Structured Summary — Order in Petition No. 262/TT/2019

Factual and Procedural Background

Power Grid Corporation of India Ltd. (the Petitioner) filed Petition No. 262/TT/2019 under Section 28(4) and Section 79(1)(d) of the Electricity Act, 2003 and Regulation 86 of the Central Electricity Regulatory Commission (Conduct of Business) Regulations, 1999 seeking truing-up of capital expenditure for the period 1.4.2013 to 31.3.2014 and determination of tariff for the 2014–19 tariff period for a set of OPGW (fibre optic) links in the Eastern Region (Assets I–IV). The project replaced existing ULDC microwave links.

Investment approval was accorded on 15.2.2011 at an estimated cost of Rs. 5,743 lakh (3Q 2010 price level). A Revised Cost Estimate (RCE) was approved by the Petitioner’s Board on 23.3.2019 at Rs. 6,410 lakh (June 2018 price level). The petition covers Asset I (17 links, ~759 km), Asset II (9 links, ~490 km), Asset III (10 links, ~440 km) and Asset IV (1 link, 78.26 km), along with references to earlier petitions under which parts of these works had been considered (e.g., Petition Nos. 57/TT/2014, 48/TT/2016, 239/TT/2018).

Procedurally, the Commission had earlier considered communication and SLDC assets in Petition No. 68/2010 (order dated 8.12.2011) and directed staff to prepare tariff regulations for these assets; in the absence of such regulations levelised tariffs were to be used for existing assets. The Petitioner previously filed Petition No. 57/TT/2014 (tariff allowed for 2009–14) and Petition No. 248/TT/2017 (disposed for lack of information, with liberty to file afresh after RCE approval). After Board approval of the RCE (23.3.2019) the instant petition was filed. The Commission heard the parties (including a reply from BSPHCL) and disposed of Petition No. 262/TT/2019 by this order.

Legal Issues Presented

  1. Whether the Commission should true-up capital expenditure for Assets I–III for the 2009–14 period and determine tariff for the 2014–19 period, and allow final trued-up tariff for Asset IV, under Sections 28(4) and 79(1)(d) of the Electricity Act, 2003 and applicable Commission regulations.
  2. Whether time over-run in commissioning (specifically 181 days for Asset IV and 61 days for Asset III) is attributable to the Petitioner and whether such over-run should be condoned for tariff purposes.
  3. What capital cost components (e.g., IDC, IEDC, additional capitalization) are allowable for the purpose of truing-up and tariff determination and how they are to be treated.
  4. What methodology, rates and recovery factors (debt/equity ratio, weighted average rate of interest, rate of return on equity, capital recovery factors, O&M and interest on working capital) are to be applied for fee & charges for the periods 2009–14 and 2014–19.
  5. Whether the Petitioner is entitled to reimbursement of filing fees and publication expenses, licence fee and RLDC fees and charges, and whether GST can be reimbursed.
  6. How the fees and charges allowed should be shared among beneficiaries and states for Central and State portions respectively.

Arguments of the Parties

Petitioner (Power Grid Corporation of India Ltd.)

  • Filed the petition under Section 28(4) and Section 79(1)(d) and Regulation 86 for truing-up of capital expenditure (1.4.2013–31.3.2014) and tariff determination for 2014–19 for specified OPGW assets replacing ULDC microwave links.
  • Explained investment approval (15.2.2011) and RCE (approved 23.3.2019) and provided audited capital cost and additional capitalization details (auditor certificates dated 18.2.2019).
  • Contended that time over-run (Asset IV: COD 1.3.2014, 181 days over-run) was not attributable to the Petitioner, citing the specialised live-line nature of OPGW installation, limited trained gangs, RLDC/SLDC permissions, weather impacts, and operational constraints on live-line work.
  • Claimed IDC, IEDC and additional capital expenditure and sought allowance of filing/publication expenses, licence fee and RLDC fees and charges reimbursement; sought reimbursement of GST.
  • Submitted weighted-average loan rates, debt-equity computation and requested application of methodologies consistent with earlier Commission orders (levelised tariff where applicable) for tariff periods 2009–14 and 2014–19.

Respondent (BSPHCL)

  • Submitted that fees and charges for a stand-alone communication system cannot be determined under Regulation 4(1) of the 2009 Tariff Regulations or Regulation 6(1) of the 2014 Tariff Regulations, and that the Tariff Regulations do not apply for determination of fees and charges under Section 28(4) of the Act.
  • Argued that the petition should therefore be rejected pursuant to Regulation 7(5) of the 2014 Tariff Regulations.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Petition No. 68/2010 — Order dated 8.12.2011 (Central Commission) Observed that communication system and SLDC system form part of CTU assets and directed preparation of tariff regulations; where no regulation existed, allowed levelised tariff for existing assets; directed Petitioner to approach Commission under Section 28(4) and Section 79(1)(d) for tariff determination. The Commission relied on this order to continue allowing levelised tariff for existing communication assets for 2009–14 and to set the principle that new specific regulations should be framed; it applied the posture that, absent regulations, the Commission can determine tariff under Section 79(1)(d).
Petition No. 57/TT/2014 — Order dated 15.9.2016 (Central Commission) Approved fees & charges (levelised) for certain OPGW assets for 2009–14; disallowed certain IDC/IEDC on account of undischarged liability and time over-run for specified assets; approved methodology for IEDC ceiling and other components. The Commission used the capital cost figures, allowances and disallowances, and the methodology from this order as the basis for truing-up Assets I–III and for the approach to IEDC/IDC and other components in the present petition.
Petition No. 248/TT/2017 — Order dated 20.9.2018 (Central Commission) Disposed the petition because information required for reassessment of capital cost was not available; granted liberty to file fresh petition after RCE approval. The Commission noted this history and observed that, following Board approval of the RCE on 23.3.2019, the Petitioner filed the instant petition; this justified proceeding to truing-up on the basis of RCE-approved figures and audited data.
Petition No. 48/TT/2016 — Order dated 5.12.2016 (Central Commission) Determined tariff for a specific OPGW link for 2014–19 (reference to handling of assets placed under different petitions). The Commission referenced that certain links were previously covered and that tariff for some links for 2014–19 had already been allowed by this order; used this as background for allocation of assets across petitions.
Petition No. 239/TT/2018 — Order dated 4.7.2019 (Central Commission) Related to balance links and allowance of tariff for 2014–19 (contextual precedent for coverage of other parts of the project). The Commission cited this order as context for which links had been covered elsewhere and where tariffs for 2014–19 had been allowed, informing the present allocation and coverage decisions.

Court's Reasoning and Analysis

The Commission proceeded by applying prior directions and established methodologies while confining itself to evidence and submissions on record. The analytical steps included:

  1. Jurisdiction and procedural posture: The petition was brought under Section 28(4) and Section 79(1)(d) together with applicable Commission regulations. The Commission relied on its prior order in Petition No. 68/2010 which recognized the need to determine tariff for communication systems in absence of specific regulations and directed levelised tariff for existing assets; accordingly the Petitioner had earlier filed Petition No. 57/TT/2014 for the 2009–14 period and the present petition followed RCE approval.
  2. Evidence of costs: The Petitioner produced Auditor's Certificates (dated 18.2.2019) and the RCE approved by its Board (23.3.2019). The Commission used gross asset values as submitted and verified from audited accounts up to 31.3.2018 for truing-up. Additional capitalisation (balance/retention payments) and IDC/IEDC disclosures were examined and allocated between Central and State portions as filed.
  3. IDC and IEDC treatment: The Commission computed allowable IDC based on loans deployed and assumed no default in interest payments; it allowed IDC where consistent with allowable dates and disallowed amounts when attributable to time over-run or undischarged liabilities (following the methodology and specific disallowances recorded in Petition No. 57/TT/2014). For IEDC, the Commission applied the same ceiling methodology as in the 15.9.2016 order (IEDC ceiling as percentage of hard cost indicated in Abstract Cost Estimate — 10.75%); claimed IEDC fell within the ceiling and was allowed, subject to pro-rata deduction for time over-run periods that were not condoned.
  4. Time over-run analysis: The scheduled COD was derived from investment approval (30 months from 15.2.2011, scheduled COD 1.9.2013). Assets I and II had no time over-run; Asset III had a 61-day over-run (not condoned earlier) and Asset IV had a 181-day over-run. The Petitioner argued the over-run for Asset IV was due to specialized live-line installation constraints, manpower limitations, RLDC/SLDC permissions and weather. The Commission, however, relied on the earlier order (8.12.2011 in Petition No. 68/2010) that required strict compliance with the timeline for replacement of digital microwave by optical fibre and therefore declined to condone the 181-day over-run for Asset IV.
  5. Capital cost, debt-equity and recovery factors: The Commission calculated capital costs as on COD and as on 31.3.2014, applied the standard debt-equity split (70:30 as per Regulation 12 of the 2009 Tariff Regulations), computed weighted average rates of interest from the loan portfolios submitted, and used a post-tax RoE of 15.50% (as adopted earlier) to derive monthly capital recovery factors for loan and equity. Monthly and annual capital recovery charges were computed for both Central and State portions for the relevant years.
  6. Truing-up and fees & charges for 2009–14: Using the verified capital costs, disallowances (IDC/IEDC adjustments) and recovery computations, the Commission trued-up fee and charges for Assets I–III for 2009–14 (as recorded in the order) and determined the final trued-up tariff for Asset IV in accordance with the principles laid down previously (8.12.2011 order).
  7. Fee & charges for 2014–19: The Commission treated the closing capital costs as on 31.3.2014 as opening capital cost on 1.4.2014, accounted for additional capital expenditure claimed for 2014–19 (as presented), computed applicable recovery factors (year-wise), and allowed capital recovery charges, O&M (actual for Central portion 2014–17 and escalated thereafter at 3.32%), and interest on working capital using the methodology consistent with earlier orders and Regulation 28(3) of the 2014 Tariff Regulations (SBI PLR as applicable on 1.4.2014 or relevant date).
  8. Specific reimbursements and taxes: The Commission found that filing fees and publication expenses are reimbursable to the Petitioner by beneficiaries on a pro-rata basis per Regulation 52(1) of the 2014 Tariff Regulations. Licence fee and RLDC fees & charges were held reimbursable as per Regulations 52(2)(b) and 52(2)(a) respectively. Regarding GST, the Commission observed that GST was not levied on transmission service at present and therefore the Petitioner’s request for GST reimbursement was premature.
  9. Sharing instructions: The Commission directed that fees and charges allowed for the Central Portion for 2009–14 be shared by respondents according to the mechanism indicated in Para 44 of the 15.9.2016 order (and in terms of the Sharing Regulations, 2010 as amended) for the 2014–19 period; State Portion charges were to be recovered from the respective states in proportion to capital costs belonging to each state.

Holding and Implications

Holding: Petition No. 262/TT/2019 is disposed of. Concretely, the Commission:

  • Trued-up the fee & charges for Assets I, II and III for the 2009–14 period and allowed tariff for the 2014–19 period for those assets in accordance with the methodologies and figures set out in the order.
  • Allowed the final trued-up tariff for Asset IV but declined to condone the 181-day time over-run for Asset IV (i.e., the over-run was not allowed for tariff purposes), applying the earlier direction that timelines for replacement of microwave by optical fibre be strictly complied with.
  • Applied the debt-equity ratio of 70:30, adopted weighted average interest rates based on the Petitioner’s loan portfolio and applied a post-tax RoE of 15.50% to compute capital recovery; applied the previously approved approach to IDC and IEDC (including ceilings and pro-rata disallowances for non-condoned time over-runs); allowed O&M and interest on working capital following established methodologies.
  • Allowed reimbursement of filing fee and publication expenses to be recovered from beneficiaries on pro-rata basis; allowed licence fee and RLDC fee & charges to be billed and recovered separately; held that reimbursement of GST is premature as GST is not levied on transmission service at present.
  • Directed that sharing of Central Portion charges be in accordance with the sharing regulations and prior orders, and that State Portion charges be borne by respective states in proportion to capital cost of assets belonging to each state.

Implications:

  • The order implements truing-up and tariff determination for the specified OPGW assets consistent with prior Commission policy (levelised treatment where regulations were absent and specified methodologies for cost components). It confirms that the Commission will not condone time over-runs where prior orders required strict timeline compliance (as with Asset IV).
  • The decision crystallizes the capital cost positions, allowed IDC/IEDC treatment, debt-equity and recovery factor calculations and the allowed O&M and IWC components for these assets for the tariff periods addressed. These determinations affect the fees & charges payable by beneficiaries and the cost-sharing between Central and State portions.
  • No broader change in regulatory methodology is announced; the order applies existing Commission directions and methodologies to the facts and audited cost data provided for these assets. The direct effect is to fix trued-up fees & charges for the specified assets and periods and to provide directions on reimbursement and sharing; the order does not purport to establish a new precedent beyond its application of prior orders and regulations.

This summary is confined strictly to information contained in the provided opinion and does not add external facts or inferences beyond that text.

Disposition: This order disposes of Petition No. 262/TT/2019. Signed by Members I. S. Jha, Dr. M. K. Iyer and Chairperson P. K. Pujari (as recorded in the provided opinion).

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    Power Grid Corporation Of India Ltd. v. National Thermal Power Corporation Ltd. And Others

    The present petition has been filed by Power Grid Corporation of India Ltd. (hereinafter referred to as the Petitioner) under of Section 28(4) and section 79(1)(d) of Electricity Act, 2003 (hereinafter referred to as the Act) and Regulation 86 of Central Electricity Regulatory Commission (Conduct of Business) Regulations, 1999 for truing up of capital expenditure of the 1.4.2013 to 31.3.2014 period and determination of tariff for the 2014-19 tariff period for Asset-I: 17 Nos. of OPGW links (759 km); Asset II: 09 nos. of OPGW links (490 km); Asset III: 10 nos. of OPGW links (440 km); and Asset IV: 01 no of WBSETCL Sector portion OPGW link (78.26 km) (hereinafter collectively referred to as assets) under Fibre Optic communication system in lieu of existing Unified Load Despatch and Communication (ULDC) Microwave links (hereinafter referred to as the transmission project) in Eastern Region. Order in Petition No. 262/TT/2019 Page 4 of 70

    2. The investment approval for the Fibre Optic Communication system in lieu of existing Unified Load Despatch and Communication (ULDC) Microwave links in Eastern Region was accorded by the Board of Directors of the Petitioner vide letter no. C/CP/Fibre Optic in ER dated 15.2.2011 at an estimated cost of `5743 lakh including IDC of `331 lakh (based on 3rd Quarter, 2010 price level).

    3. The Revised Cost Estimate (RCE) for Fibre Optic Communication System in lieu of existing ULDC microwave links in Eastern Region was accorded by Board of Directors of the Petitioner vide Memorandum No. C/CP/PA1920-02-0C-RCE-002 dated 9.5.2019 at the Estimated Cost of `6410 lakh including IDC of `322 lakh (at June, 2018 price level) in its 364th meeting held on 23.3.2019.

    4. The broad scope of work covered under the transmission project is as under:- (a) Installation of OPGW fibre optic cable on the existing EHV transmission line of POWERGRID and constituents, the estimated length of such cable is approximately 2325 km; (b) Installation of approximately 34 km underground fibre optic to provide last mile connectivity to the control room where transmission line connectivity is not available. It is also envisaged that portion of the network which involves installation of the underground cable would be provided with radio based communication which operates in free band to back up the underground cable link of the network. Four number of radio links are proposed; Order in Petition No. 262/TT/2019 Page 5 of 70 (c) The terminal equipment for communication based upon synchronous digital hierarchy (SDH) technology shall be installed in the sub-stations of constituents and POWERGRID. The project would also involve installation of primary multiplexers at the new wide band nodes; To monitor the Network, Network Management System (NMS) would also be required.

    5. The details of the assets covered in the instant transmission project and the details of the petitions under which they were dealt earlier are as under: Name of Asset Actual Remark

    1 Asset I: 17 OPGW links (approx. 759 1.10.2012 Covered under instant petition. Tariff for 2009-14 period was earlier allowed in Petition No. 57/TT/2014.

    2 Asset II: 9 OPGW links (approx. 490 1.4.2013

    3 Asset III: 10 OPGW links (approx. 440 1.11.2013

    4 Asset IV: 01 no. OPGW WBSETCL Sector portion link (78.26 km) 1.3.2014 Covered under instant petition.

    5 01 no. of OPGW link 21.003 km under central sector 1.10.2014 Covered in Petition No. 48/TT/2016 and tariff for 2014-

    19 tariff period was allowed vide order dated 5.12.2016

    6 01 no. of OPGW link 17.03 km under WBSETCL Sector

    7 07 nos. of OPGW link under DVC sector 196.81 km

    8 02 nos. of OPGW link 278.641 km under central sector 20.4.2015

    9 02 nos. of OPGW link 35.044 km under WBSETCL Sector

    10 01 nos. of OPGW link under DVC sector 0.80 km. Balance links - Covered in Petition No.239/TT/2018 and tariff for 2014-19 tariff period was allowed vide order dated 4.7.2019 Order in Petition No. 262/TT/2019 Page 6 of 70 Background

    6. The Government of India (GOI) vide order dated 4.7.2008, created Power System Operation Corporation Ltd. (POSOCO) as a wholly owned subsidiary of PGCIL. POSOCO is responsible for system operation of National Load Despatch Centre (NLDC) and Regional Load Despatch Centre (RLDC). Pursuant to Satnam Singh Committees report, the assets pertaining to system operations have been transferred to POSOCO for which separate tariff orders are issued by the Commission.

    7. Government of India had also constituted a Task Force to look into the financial aspects for augmentation and up-gradation of the State Load Despatch Centres and issues related to emoluments for the personnel engaged in the system operation. The Task Force made certain recommendations with regard to the ownership of the assets. The Petitioner constituted committees at the regional level, subsequent to the Task Force's report, to identify the assets to be transferred to POSOCO. The recommendations of the committees for asset transfer were as follows:- (A) Assets to be transferred to POSOCO:

    (i) EMS/SCADA system (computer system, hardware and software)

    (ii) Auxiliary power supply system comprising of uninterrupted power supply, diesel generating set etc.

    (iii) Building and civil works. (B) Assets which will remain with Petitioner:

    I. Central Portion: Order in Petition No. 262/TT/2019 Page 7 of 70

    (i) Fibre Optic Cables (overhead and underground)

    (ii) Fibre Optic Communication Equipment

    (iii) Digital Microwave Communication System (Tower, Antenna, Equipment etc.)

    (iv) PABX

    (v) Power Line Carrier Communication System;

    (vi) Auxiliary power supply system.

    II. State Portion: Entire state portion which consists of the following equipment will remain with the Petitioner:

    (i) EMS/SCADA system

    (ii) Fibre Optic System

    (iii) Digital Microwave Communication System (Tower, Antenna, Equipment etc.)

    (iv) PABX

    (v) Power Line Carrier Communication System

    (vi) Auxiliary power supply system (part)

    8. The Petitioner filed Petition No. 68/2010 under Section 28(4) of the Act and Regulation 44 (Power to Relax) of the 2009 Tariff Regulations for specifying the tariff norms for recovery of cost for the assets to be retained/to be installed by the Petitioner after formation of POSOCO for the 2009-14 period.

    9. The Commission in Petition No. 68/2010 vide order dated 8.12.2011, had observed as under:- 9............Since the communication system and SLDC system form part of the assets of the CTU, there is a requirement to specify regulations for determination of tariff of these assets. We direct the staff of the Commission to undertake the exercise separately and include these assets of CTU in the tariff regulations applicable for the next tariff period

    i.e.2014-19. As regards the tariff of these assets for the period 2009-14, we are not inclined to determine the tariff of these assets by exercising our power to relaxation under Regulation 44 of the 2009 regulations since there is no provision for determination of tariff for the assets covered under the communication system and ULDC system. We are of the view that the tariff of these assets shall be determined under our general power of determination of tariff for inter-State transmission system under section 79(1)(d) of the Act........ Order in Petition No. 262/TT/2019 Page 8 of 70 ........It clearly emerges from the above judgment that the Central Commission can specify the terms and conditions of tariff even in the absence of the regulations. Since no regulation was specified for determination of tariff of the communication system and the ULDC system, the Commission determined the tariff of these assets during the period 2004-09 on levelised basis by adopting some of the parameters of 2004 tariff regulations. We have decided to continue with the levelised tariff for the existing assets in the absence of any provision in 2009 regulations regarding determination of tariff of communication system and ULDC system of the petitioner. For the new assets, the tariff will be decided as per the regulations for communication systems to be framed. Accordingly we direct the staff of the Commission to take necessary action to prepare draft regulations for determination of tariff for the communication system and ULDC system of the petitioner.

    21. We have considered the submission of the petitioner and the respondents. We are of the view that replacement of microwave links with fibre optic links should be implemented as agreed by the beneficiaries to ensure safe and reliable operation of the power system. Moreover, the petitioner has submitted that surrender of the microwave frequencies would save substantial cost and the fibre optic system would be beneficial in the long run as the fibre optic communication network is required for implementation of new technologies like Wide Area Measurement System (WAMS), Special Protection Schemes (SPS) etc. in view of fast development and complexity of the power system in the country. As regards the regulatory approval, we are of the view that since the project has been agreed to be implemented by the constituents of each of the regions, regulatory approval is not considered necessary. The petitioner is granted liberty to approach the Commission for determination of tariff for the fibre optic network being installed in lieu of microwave links for each of the region separately. As regards the submission of UPPTCL, it is clarified that if the state portion is not being implemented by it separately as proposed earlier, the same shall be implemented by the petitioner and UPPTCL would be required to share the tariff in proportion to the assets being utilised by it. It is however made clear that the timeline for replacement of the digital microwave by optical fibre should be strictly complied with.

    10. The Commission in order dated 8.12.2011 in Petition No. 68/2010 observed that in the absence of any provision in the 2009 Tariff Regulations for determination of tariff of communication system and ULDC system levelised tariff would be allowed for the existing communication system and ULDC system of the Petitioner. The Petitioner filed Petition No. 57/TT/2014 for Asset-I, II and III in accordance with sub-section of Sections 28(4) and 79(1)(d) of the Act and the annual fee and charges for the instant Order in Petition No. 262/TT/2019 Page 9 of 70 assets was allowed as per the principles approved in order dated 8.12.2011 in Petition No. 68/2010.

    11. Later, the Petitioner filed Petition No. 248/TT/2017 for truing-up of the fee and charges allowed for Assets-I, II and III for the period from COD of the respective assets to 31.3.2014 and for determination of fee and charges for Asset-IV from its COD on 1.3.2014 to 31.3.2014. The Commission disposed of the said petition as the information required for reassessment of the capital cost was not available, vide order dated 20.9.2018 with a liberty to the Petitioner to file a fresh petition after the approval of the RCE by the Petitioners Board of Directions. The observations made by the Commission in order dated in this regard are as under:

    10. As such, the truing up exercise for the tariff period 2009-14 and the tariff determination for tariff period 2014-19 would not be feasible in absence of such information regarding reassessment of capital cost

    12. Subsequently, RCE was approved by the Board of Directors of the Petitioner on 23.3.2019 and accordingly the Petitioner has filed the instant petition.

    13. In this order, the fee and charges allowed for Assets-I, II and III for the 2009-14 period vide order dated 15.9.2016 in Petition No. 57/TT/2014 is trued up and tariff for the 2014-19 period is allowed for the said assets. Besides this, the final trued up tariff for Asset-IV is also allowed in this order as per the principles laid down in order dated 8.12.2011 in Petition No. 68/2010. Order in Petition No. 262/TT/2019 Page 10 of 70

    14. The Petitioner has served the petition on the respondents and notice of this application has been published in the newspapers in accordance with Section 64 of the Act. No comments have been received from the public in response to the notices published by the Petitioner under Section 64 of the Act. Bihar State Power (Holding) Company Ltd. (BSPHCL) has filed its reply vide affidavit dated 15.10.2019 and the Petitioner has filed its rejoinder to the reply of BSPHCL vide affidavit dated 15.10.2019.

    15. BSPHCL has submitted that fees and charges for the stand alone communication system cannot be determined either under Regulation 4(1) of the 2009 Tariff Regulations or under Regulation 6(1) of the 2014 Tariff Regulations. BSPHCL has further submitted that the Tariff Regulations are also not applicable for determination of fee and charges as contained in Section 28(4) of the Act. Accordingly, this petition is liable to be rejected in accordance with Regulation 7(5) of the Tariff Regulations, 2014. In response, the Petitioner has submitted that the ULDC schemes were introduced in different regions between 2002 and 2006 and no specific regulations were available at that time as required under Section 28(4) of the Act for determination of fees and charges for the said assets for the 2004-09 period. Therefore, the Petitioner filed Petition No.68/2010 praying for extension of the 2009 Tariff Regulations for determination of fees and charges for the communication system and SLDC system to be retained/additional assets to be created by the Petitioner by exercising the power to relax under Regulation 44 of the 2009 Tariff Regulations and Order in Petition No. 262/TT/2019 Page 11 of 70 the Commission vide order dated 8.12.2011 directed the Petitioner to file petition for approval of tariff for the communication in accordance with Section 28(4) of the Act.

    16. As there were no specific regulations for determination of fee and charges for the communication system under the 2009 Tariff Regulations, the Commission in order dated 8.12.2011 had directed the Petitioner to seek approval of fee and charges for the communication system for the 2009-14 period under Sections 28(4) and 79(1)(d) of the Act and decided to allow levelised tariff for the existing communication system. Accordingly, the Petitioner filed Petition No. 57/TT/2014 and the Commission vide order dated 15.9.2016 allowed levelised tariff for the communication system for the 2009-14 period. As regards the fees and charges for the 2014-19 tariff period, the Commission in proviso (iii) of Regulation 6(1) of the 2014 Tariff Regulations has specified that the tariff for the existing communication system shall be as per the methodology followed prior to 1.4.2014. Accordingly, the instant OPGW links are allowed levelised tariff for 2009-14 and 2014-19 tariff periods.

    17. Having heard the representatives of the Petitioner and BSPHCL and perused the material on record, we proceed to dispose of the Petition. Time over-run

    18. As per investment approval, the instant project was scheduled to be commissioned within 30 months from the date of investment approval of 15.2.2011. Accordingly, the scheduled COD of the instant assets was 1.9.2013. Asset-I and Order in Petition No. 262/TT/2019 Page 12 of 70 Asset-II were put into commercial operation on 1.10.2012 and 1.4.2013 respectively. Therefore, there is no time over-run in case of Asset-I and Asset-II. Asset-III was put into commercial operation on 1.11.2013 and there was a time over-run of 61 days which was not condoned by the Commission in order dated 15.9.2016 in Petition No. 57/TT/2014.

    19. The Petitioner has claimed the COD of the Asset-IV as 1.3.2014. With respect to RLDC charging certificate, the Petitioner has submitted that the instant asset achieved COD during 2009-14 tariff period and thus the charging certificate for the same is not applicable. The COD of Asset-IV was discussed in 27th ERPC and TCC meeting held on 30.5.2014 and was approved as 1.3.2014. Considering the self-declaration COD certificate and approval of ERPC, the COD of the Asset IV is approved as 1.3.2014. Accordingly, there is a time over-run of 181 days in case of Asset IV.

    20. The Petitioner has submitted that the time over-run of 181 days in case of Asset- IV is not attributable to the Petitioner and requested to condone the time over-run of of

    181 days. The Petitioner has given the following reasons for the time over-run: It may be mentioned the OPGW installation is a specialized nature of job and is generally done under live line conditions. POWERGRID has taken up huge volume of work for connecting POWERGRID sub-stations. Simultaneously, POWERGRID has also taken up OPGW work for state utilities on their request due to greater stress on reliable communication requirement for grid operation. The live line installation of OPGW requires trained manpower and specialized T&P. Due to availability of limited no. of trained gangs for live line installation of OPGW, the installation process is not commensurate with the volume of work. Further, to take up live line installation, permission from RLDC/SLDC is required who are responsible for grid operation. The SLDCs and RLDCs provide permission for live line installation considering the power flow situation. Considering these aspects there Order in Petition No. 262/TT/2019 Page 13 of 70 are restrictions on taking up live line work on parallel lines and adjacent lines simultaneously. The progress of the live line work is also affected due to rain and fog. Efforts are being made to expedite the work and in the last few months the no. of gangs have increased several times with corresponding increase in OPGW installation.

    21. We have considered the submissions of the Petitioner regarding time over-run. The Petitioner has submitted that the time over-run is mainly due to availability of limited number of trained gangs for live line installation and obtaining permission from SLDC and RLDC for live line installation and restrictions for taking up live line work on parallel lines and adjacent lines simultaneously. The progress of the live line work was also affected due to rain and fog. However, it was clearly stated in the Commissions order dated 8.12.2011 in Petition No. 68/2010 that the timeline for replacement of the digital microwave by optical fibre should be strictly complied with. The relevant portion of the said order is as under:- We have considered the submission of the petitioner and the respondents. We are of the view that replacement of microwave links with fibre optic links should be implemented as agreed by the beneficiaries to ensure safe and reliable operation of the power system. Moreover, the petitioner has submitted that surrender of the microwave frequencies would save substantial cost and the fibre optic system would be beneficial in the long run as the fibre optic communication network is required for implementation of new technologies like Wide Area Measurement System (WAMS), Special Protection Schemes (SPS) etc. in view of fast development and complexity of the power system in the country. As regards the regulatory approval, we are of the view that since the project has been agreed to be implemented by the constituents of each of the regions, regulatory approval is not considered necessary. The petitioner is granted liberty to approach the Commission for determination of tariff for the fibre optic network being installed in lieu of microwave links for each of the region separately. As regards the submission of UPPTCL, it is clarified that if the state portion is not being implemented by it separately as proposed earlier, the same shall be implemented by the petitioner and UPPTCL would be required to share the tariff in proportion to the assets being utilised by it. It is however made clear that the timeline for replacement of the digital microwave by optical fibre should be strictly complied with. Order in Petition No. 262/TT/2019 Page 14 of 70 In view of the above, we are not inclined to condone the time over run of 181 days in commissioning of Asset-IV.

    22. The Commission, vide order dated 15.9.2016 in Petition No. 57/TT/2014 has approved the fee and charges based on the following capital cost for Assets-I, II and III as on their respective COD. (` in lakh) Particulars Asset-I Asset-II Asset-III Central Portion State Portion Central Portion State Portion Central Portion State Portion Expenditure up to COD (claimed)-(A) 26.47 423.32 34.81 391.20 321.75 259.48 IDC disallowed due to Undischarged Liability and Time over-run-(B) 1.98 6.17 0.00 0.00 0.00 0.00 IEDC disallowed due to Time over-run-(C) 0.00 0.00 0.00 0.00 1.91 1.54 Capital Cost as on COD (allowed) [A-(B+C)] 24.49 417.15 34.81 391.20 319.84 257.94 Add Cap during 2012-13/2013-14 43.44 1052.09 47.43 421.82 93.82 132.00 Capital cost as on 31.3.2014 67.93 1469.24 82.24 813.02 413.66 389.94

    23. The details of the fee and charges approved for Assets-I, II and III in order dated 15.9.2016 are as under:- (` in lakh) Asset-I Central Portion State Portion 2012-13 2013-14 2012-13 2013-14 Annual Capital Recovery Charge - Loan 1.06 3.10 18.06 57.65 Annual Capital Recovery Charge - Equity 0.63 1.84 10.77 34.28 Annual Capital Recovery Charge - Total 1.69 4.94 28.83 91.93 O&M Expenses 14.32 31.48 0.00 0.00 Interest on Working Capital 0.83 1.85 0.66 2.12 Total Fee & Charges 16.84 38.27 29.49 94.04 Order in Petition No. 262/TT/2019 Page 15 of 70 (` in lakh) Asset-II Central Portion State Portion 2013-14 2013-14 Annual Capital Recovery Charge - Loan 2.98 33.44 Annual Capital Recovery Charge - Equity 1.80 20.20 Annual Capital Recovery Charge - Total 4.77 53.64 O&M Expenses 17.45 0.00 Interest on Working Capital 1.05 1.21 Total Fee & Charges 23.27 54.85 (` in lakh) Asset-III Central Portion State Portion 2013-14 2013-14 Annual Capital Recovery Charge - Loan 11.71 9.44 Annual Capital Recovery Charge - Equity 6.88 5.55 Annual Capital Recovery Charge - Total 18.59 14.99 O&M Expenses 6.11 0.00 Interest on Working Capital 0.75 0.34 Total Fee & Charges 25.44 15.33 Truing up of Fee and Charges for the 2009-14 period Capital Cost as on COD

    24. The Petitioner, vide Auditors Certificates dated 18.2.2019, has submitted actual expenditure in case of Assets-I, II, III and Asset-IV corresponding to Central Portion as well as State Portion separately. The details of the Apportioned Approved Cost, Capital Cost as on COD and additional capitalization incurred for the instant OPGW links covered during 2012-13 and 2013-14 are as follows:- (` in lakh) Name of Asset Apportioned approved cost/RCE SECTOR Cost as on DOCO 2012-13 2013-14 TOTAL Asset-I 2094.63/ 1931.80 CENTRAL 26.47 11.12 18.36 55.95 STATE 423.32 244.72 398.32 1066.36 TOTAL 449.79 255.84 416.68 1122.31 Asset-II 1292.84/ CENTRAL 34.81 - 24.03 58.84 Order in Petition No. 262/TT/2019 Page 16 of 70 The capital cost has been verified from the audited accounts of the Petitioner by the Auditor up to 31.3.2018.

    25. The gross value of the assets submitted by the Petitioner as on COD have been considered for the purpose of true-up of fee and charges of 2009-14 period. Interest During Construction (IDC)

    26. The Petitioner has claimed IDC of `8.15 lakh, `5.03 lakh, `34.78 lakh and `5.11 lakh for Assets-I, II, III and IV respectively. The Petitioner, vide Auditors Certificates dated 18.2.2019, has submitted the segregated IDC for Central Portion as well as State Portion. However, the Petitioner has submitted asset-wise combined working of IDC calculations for Central Portion as well as State Portion.

    27. Allowable IDC has been worked out based on the loans deployed as per submission of the Petitioner on allowable date of IDC assuming that the Petitioner has not made any default in the payment of interest. We have worked out the allowable IDC by considering time over-run not allowed in case of Asset-III and IV. It is observed that the IDC claimed by the Petitioner in respect of Assets-I, II and III are slightly lower and in respect of Asset-IV is higher than the allowable IDC. Therefore, the IDC which is lower is considered for computation of fee and charges. Further, the 1078.97 STATE 391.20 - 207.28 598.48 TOTAL 426.01 - 231.31 657.32 Asset-III 1054.57/ 949.39 CENTRAL 321.75 - 0.84 322.59 STATE 259.48 - 12.23 271.71 TOTAL 581.23 - 13.07 594.30 Asset-IV 208.52/ 159.08 CENTRAL - - - - STATE 89.18 - 0.19 89.37 TOTAL 89.18 - 0.19 89.37 Order in Petition No. 262/TT/2019 Page 17 of 70 Petitioner has submitted the statement showing un-discharged IDC liability as on COD and to be discharged after COD. Accordingly, the IDC claimed, allowed, disallowed and liability thereon as on COD and discharge of liability thereafter are summarized below:- (` in lakh) Asset Sector Claimed Allowed Disallowed account of excess claim /time over-run condoned, if any) (e) Liability (as on COD) Discharged during 2012-13 Discharg ed during 2013-14 Asset-I Central Portion 1.98 1.98 - 1.98 1.90 0.08 State Portion 6.17 6.17 - 6.17 5.93 0.24 Total 8.15 8.15 - 8.15 7.83 0.32 Asset-II Central Portion 0.41 0.41 - - - - State Portion 4.62 4.62 - - - - Total 5.03 5.03 - - - - Asset-III Central Portion 19.25 19.25 - 4.68 - 4.68 State Portion 15.53 15.53 - 3.77 - 3.77 Total 34.78 34.78 - 8.45 - 8.45 Asset-IV Central Portion - - - - - - State Portion 5.11 3.08 2.03 1.23 - 1.23 Total 5.11 3.08 2.03 1.23 - 1.23 Order in Petition No. 262/TT/2019 Page 18 of 70

    28. The IDC, as per column (e) and column (f) above, have been deducted from Capital Cost as on COD. Discharge of liability as per column (g) and column (h) above have been added to the additional capital expenditure during 2012-13 and 2013-14. Incidental Expenditure during Construction (IEDC)

    29. The Petitioner has claimed IEDC of `26.50 lakh, `32.59 lakh, `55.18 lakh and `0.88 lakh for Assets-I, II, III and IV respectively. The Petitioner, vide Auditors Certificates dated 18.2.2019, has submitted the segregated IEDC for Central Portion as well as State Portion. However, the Petitioner has submitted asset-wise combined detail of IEDC calculations for Central Portion as well as State Portion.

    30. We have applied same methodology approved in respect of IEDC in order dated 15.9.2016 in Petition No. 57/TT/2014. As per the said order, the percentage of Hard Cost indicated in the Abstract Cost Estimate is considered as the allowable limit for the IEDC. In the current petition, the Petitioners claim is within the percentage of 10.75% on Hard Cost as indicated in the Abstract Cost Estimate, in case of Assets-I, II, III and IV. Hence, as per ceiling limit, IEDC claimed by the Petitioner is allowed.

    31. Further, pro-rata IEDC of `3.40 lakh (`1.88 lakh for Central Portion and `1.52 lakh for State Portion) and `0.14 lakh (State Portion) in case of Asset-III and IV respectively, for the period of time over-run not condoned are being deducted from the capital cost as on COD. Therefore, Capital Cost as on DOCO considered for the Order in Petition No. 262/TT/2019 Page 19 of 70 purpose of fee and charges in the present petition, after scrutiny of IEDC and IDC are as follows:- (` in lakh) Asset Portion Capital Cost Claimed as on COD Disallowed account of Excess Claim /Time Overrun condoned, if any) (d) Liability (as on COD) Pro-rata IEDC On account of time over-run condoned Capital Cost allowed as on COD (g)=[(c) (d)-(e) (f)] Asset-I Central Portion 26.47 - 1.98 - 24.49 State Portion 423.32 - 6.17 - 417.15 Total 449.79 - 8.15 - 441.64 Asset-II Central Portion 34.81 - - - 34.81 State Portion 391.20 - - - 391.20 Total 426.01 - - - 426.01 Asset-III Central Portion 321.75 - 4.68 1.88 315.19 State Portion 259.48 - 3.77 1.52 254.19 Total 581.23 - 8.45 3.40 569.38 Asset-IV Central Portion - - - - - State Portion 89.18 2.03 1.23 0.14 85.78 Total 89.18 2.03 1.23 0.14 85.78 Additional Capital Expenditure during the tariff period 2009-14

    32. As stated above, the Petitioner has submitted Auditors Certificates dated 18.2.2019 for additional capitalization for Assets-I, II, III and IV corresponding to Central Portion and State Portion during 2012-13 and 2013-14. The additional Order in Petition No. 262/TT/2019 Page 20 of 70 capitalization is on account of Balance/Retention payment and accordingly it is allowed. Further, as indicated at column (g) and column (h), IDC discharged during the respective years are to be allowed as additional capital expenditure of the respective years. Accordingly, the Capital Cost allowed as on COD and additional capital expenditure from COD to 31.3.2014 are as follows: Debt equity ratio

    33. The details of Debt-Equity as on COD of the assets and as on 31.3.2014, as per Regulation 12 of the 2009 Tariff Regulations, are as follows:- (` in lakh) Asset-I As on COD As on 31.3.2014 Central Portion State Portion Central Portion State Portion Loan 17.14 292.01 39.17 746.45 Equity 7.35 125.15 16.79 319.91 Total 24.49 417.15 55.95 1066.36 Debt (%) 70.00 70.00 70.00 70.00 Equity (%) 30.00 30.00 30.00 30.00 Total 100.00 100.00 100.00 100.00 Particulars PORTION Capital Cost allowed as on COD 2012-13 2013-14 TOTAL Asset-I Central 24.49 13.02 18.44 55.95 State 417.15 250.65 398.56 1066.36 Total 441.64 263.67 417.00 1122.31 Asset-II Central 34.81 - 24.03 58.84 State 391.20 - 207.28 598.48 Total 426.01 - 231.31 657.32 Asset-III Central 315.19 - 5.52 320.71 State 254.19 - 16.00 270.19 Total 569.38 - 21.52 590.90 Asset-IV Central - - - - State 85.78 - 1.42 87.19 TOTAL 85.78 - 1.42 87.19 Order in Petition No. 262/TT/2019 Page 21 of 70 (` in lakh) Asset-II As on COD As on 31.3.2014 Central Portion State Portion Central Portion State Portion Loan 24.37 273.84 41.19 418.94 Equity 10.44 117.36 17.65 179.54 Total 34.81 391.20 58.84 598.48 Debt (%) 70.00 70.00 70.00 70.00 Equity (%) 30.00 30.00 30.00 30.00 Total 100.00 100.00 100.00 100.00 (` in lakh) Asset-III As on COD As on 31.3.2014 Central Portion State Portion Central Portion State Portion Loan 220.63 177.93 224.50 189.14 Equity 94.56 76.26 9621 81.06 Total 315.19 254.19 320.71 270.19 Debt (%) 70.00 70.00 70.00 70.00 Equity (%) 30.00 30.00 30.00 30.00 Total 100.00 100.00 100.00 100.00 (` in lakh) Asset-IV As on COD As on 31.3.2014 Central Portion State Portion Central Portion State Portion Loan - 60.04 - 61.04 Equity - 25.73 - 26.16 Total - 85.78 - 87.19 Debt (%) - 70.00 - 70.00 Equity (%) - 30.00 - 30.00 Total - 100.00 - 100.00 Rates for Recovery of loan and equity

    34. The Petitioner has submitted year wise Weighted Average Rate of Interest based on separate loan portfolio as on COD and for additional capital expenditure in respect of Central Portion and State Portion corresponding to Assets-I, II, III and IV. However, in Petition No. 57/TT/2014, the Petitioner had submitted combined loan portfolio for Central Portion and State Portion for each asset. We have calculated the Weighted Order in Petition No. 262/TT/2019 Page 22 of 70 Average Rate of Interest of Loans which has been applied for calculating the Capital Recovery Factor for loan.

    35. As in Petition No. 57/TT/2014, rate of return on equity of 15.50% has been applied for calculating the Capital Recovery Factor for equity portion. The above rates being on annual basis have been converted to monthly rates. Monthly Capital Recovery Charges

    36. The monthly Capital Recovery Factors for loan and equity have been worked out using the following relationship: Recovery Factor = i x (1+i) n = period, and i = rate (1+i) -1

    37. The monthly Recovery factors for Loan for Central Portion and State Portion is as follows: (` in lakh) Particulars Asset-I Asset-II Asset-III Asset-IV 2012-13 2013-14 2013-14 2013-14 2013-14 Central Portion 0.010307 0.010388 0.010177 0.010232 - State Portion 0.010307 0.010369 0.010177 0.010232 0.009997

    38. Similarly, monthly Recovery Factors for Equity for Central portion and State portion are as under: (` in lakh) Particulars Asset-I Asset-II Asset-III Asset-IV 2012-13 2013-14 2013-14 2013-14 2013-14 Central Portion 0.014340 0.014468 0.014340 0.014340 - State Portion 0.014340 0.014468 0.014340 0.014340 0.014340 Order in Petition No. 262/TT/2019 Page 23 of 70

    39. Based on the above recovery factors, monthly Capital Recovery Charges for Loan for Central as well as State portion are worked out and they are as follows: (` in lakh) Particulars Asset-I Asset-II Asset-III Asset-IV 2012-13 2013-14 2013-14 2013-14 2013-14 Central Portion 0.18 0.27 0.25 2.26 - State Portion 3.01 4.80 2.79 1.82 0.60

    40. The monthly Capital Recovery Charges for Equity for Central and State portion are worked out and they are as follows: (` in lakh) Particulars Asset-I Asset-II Asset-III Asset-IV 2012-13 2013-14 2013-14 2013-14 2013-14 Central Portion 0.11 0.16 0.15 1.36 - State Portion 1.79 2.88 1.68 1.09 0.37

    41. While working out the capital recovery charges for loan, Weighted Average Rate of Interest and Rate of Return on Equity, as indicated above have been considered. Accordingly, the following recovery of Capital during 2009-14 has been worked out:- (` in lakh) Particular Capital Central Portion State Portion Total Asset-I (Capital Cost Recovered during 2009-14) Loan 1.14 20.73 21.87 Equity 0.29 5.09 5.38 Total 1.43 25.82 27.25 Asset-II (Capital Cost Recovered during 2009-14) Loan 0.80 9.01 9.81 Equity 0.19 2.15 2.34 Total 0.99 11.16 12.15 Asset-III (Capital Cost Recovered during 2009-14) Loan 2.92 2.35 5.28 Equity 0.69 0.56 1.25 Total 3.61 2.91 6.52 Asset-IV (Capital Cost Recovered during 2009-14) Loan - 0.16 0.16 Equity - 0.04 0.04 Total - 0.20 0.20 Order in Petition No. 262/TT/2019 Page 24 of 70

    42. On the basis of the above, the Capital Cost considered and its recovery during 2009-14 period, the Net Capital cost of the Assets as on 31.3.2014 is derived as follows:- (` in lakh) Asset-I Capital Central Portion State Portion Total Gross Capital Cost as on 31.3.2014 Loan 39.17 746.45 785.62 Equity 16.79 319.91 336.69 Total 55.95 1066.36 1122.31 Capital Cost Recovered from COD to 31.3.2014 Loan 1.14 20.73 21.87 Equity 0.29 5.09 5.38 Total 1.43 25.82 27.25 Net Capital Cost as on 31.3.2014 Loan 38.03 725.72 763.75 Equity 16.50 314.82 331.32 Total 54.52 1040.54 1095.06 (` in lakh) Asset-II Capital Central Portion State Portion Total Gross Capital Cost as on 31.3.2014 Loan 41.19 418.94 460.12 Equity 17.65 179.54 197.20 Total 58.84 598.48 657.32 Capital Cost Recovered from COD to 31.3.2014 Loan 0.80 9.01 9.81 Equity 0.19 2.15 2.34 Total 0.99 11.16 12.15 Net Capital Cost as on 31.3.2014 Loan 40.39 409.93 450.32 Equity 17.46 177.39 194.85 Total 57.85 587.32 645.17 (` in lakh) Asset-III Capital Central Portion State Portion Total Gross Capital Cost as on 31.3.2014 Loan 224.50 189.14 413.63 Equity 96.21 81.06 177.27 Total 320.71 270.19 590.90 Capital Cost Recovered from COD to 31.3.2014 Loan 2.92 2.35 5.28 Equity 0.69 0.56 1.25 Total 3.61 2.91 6.52 Net Capital Cost as on 31.3.2014 Loan 221.58 186.78 408.36 Equity 95.52 80.50 176.02 Total 317.10 267.28 584.38 (` in lakh) Asset-IV Capital Central Portion State Portion Total Gross Capital Cost as on 31.3.2014 Loan - 61.04 61.04 Equity - 26.16 26.16 Total - 87.19 87.19 Order in Petition No. 262/TT/2019 Page 25 of 70 Capital Cost Recovered from COD to 31.3.2014 Loan - 0.16 0.16 Equity - 0.04 0.04 Total - 0.20 0.20 Net Capital Cost as on 31.3.2014 Loan - 60.87 60.87 Equity - 26.12 26.12 Total - 87.00 87.00 Operation & Maintenance Expenses (O&M Expenses)

    43. The details of the O&M Expenses claimed and allowed for the Central Portion for the 2009-14 period is as under:- (` in lakh) Particulars 2012-13 2013-14 Asset I 14.33 31.48 Asset II - 17.45 Asset III - 6.11 Asset IV - NA* * O&M under state Portion. Interest on working capital (IWC)

    44. IWC has been worked out in line with the methodology explained vide order dated 15.9.2016 in Petition No. 57/TT/2014.

    (i) Maintenance spares: Maintenance spares have been considered at the rate of 15% of O&M expenses each year for the purpose of calculation of working capital.

    (ii) O & M expenses: One months O&M expenses have been allowed above and have been considered as an element of working capital.

    (iii) Receivables: Receivables, as a component of working capital, have been worked out on the basis of 2 months of fees and charges. Order in Petition No. 262/TT/2019 Page 26 of 70

    (iv) Rate of interest on working capital: In line with the 2009Tariff Regulations, SBI PLR as on 1.4.2012 (i.e.13.50%) for Asset-I corresponding to Central as well as State Portion is considered as the rate of interest on working capital. Similarly, SBI PLR as on 1.4.2013 (i.e.13.20%) for Assets-II, III and IV corresponding to Central and/or State Portion is considered as the rate of interest on working capital.

    45. The details of the trued-up fees and charges of the 2009-14 tariff period of Assets-I, II, III and IV are given below: Order in Petition No. 262/TT/2019 Page 27 of 70 Asset-I Central Portion- Charges (2009-14) State Portion-Charges (2009-14) (` in lakh) Particulars Years Years 2012-13 2013-14 2012-13 2013-14 Opening Gross Capital Cost 24.49 37.51 417.15 667.80 Opening Gross Notional Loan 17.14 26.26 292.01 467.46 Opening Gross Equity 7.35 11.25 125.15 200.34 Recovered Gross Capital Cost (As on 1st April) 0.00 0.34 0.00 5.71 Recovered Gross Notional Loan 0.00 0.27 0.00 4.60 Recovered Gross Equity 0.00 0.06 0.00 1.10 Opn.Net Capital Cost 24.49 37.18 417.15 662.09 Opn. Net Notional Loan 17.14 25.99 292.01 462.85 Opn. Net Equity 7.35 11.19 125.15 199.24 Recovered Capital Cost (During the Year) 0.34 1.09 5.71 20.11 Recovered Notional Loan 0.27 0.87 4.60 16.13 Recovered Equity 0.06 0.22 1.10 3.98 Cl. Net Capital Cost 24.15 36.08 411.44 641.98 Cl. Net Notional Loan 16.87 25.12 287.40 446.73 Cl. Net Equity 7.28 10.97 124.04 195.25 Additional Capital Expenditure 13.02 18.44 250.65 398.56 Additional Notional Loan 9.12 12.91 175.45 278.99 Additional Equity 3.91 5.53 75.19 119.57 Years (Capital to be recovered up to 30.09.2027) 15.00 14.50 15.00 14.50 Months 180.00 174.00 180.00 174.00 Weighted Average Rate of Interest p.a. 9.2757% 9.1337% 9.2757% 9.1017% Weighted Average Rate of Interest p.m. 0.7730% 0.7611% 0.7730% 0.7585% Monthly Recovery Factors - 0.010307 0.010388 0.010307 0.010369 Order in Petition No. 262/TT/2019 Page 28 of 70 Loan Monthly Capital Recovery Charge - Loan 0.18 0.27 3.01 4.80 Annual Capital Recovery Charge - Loan 2.12 3.24 36.12 57.59 Rate of Return on Equity p.a. 15.500% 15.500% 15.500% 15.500% Rate of Return on Equity p.m. 1.292% 1.292% 1.292% 1.292% Monthly Recovery Factors - Equity 0.014340 0.014468 0.014340 0.014468 Monthly Capital Recovery Charge - Equity 0.11 0.16 1.79 2.88 Annual Capital Recovery Charge - Equity 1.26 1.94 21.53 34.59 Monthly Capital Recovery Charge - Total 0.28 0.43 4.80 7.68 Annual Capital Recovery Charge - Total 3.38 5.18 57.65 92.18 O&M Expenses (Annualized) 28.64 31.48 0.00 0.00 Fee & Charges (Annualized) Central Portion- Charges State Portion-Charges Particulars 2012-13 2013-14 2012-13 2013-14 Annual Capital Recovery Charge - Loan 2.12 3.24 36.12 57.59 Annual Capital Recovery Charge - Equity 1.26 1.94 21.53 34.59 Annual Capital Recovery Charge - Total 3.38 5.18 57.65 92.18 O&M Expenses 28.64 31.48 0.00 0.00 Interest on Working Capital1 1.66 1.82 1.33 2.07 Total Fee & Charges 33.68 38.48 58.98 94.26 Interest on Working Capital (Annualized) Central Portion- Charges State Portion-Charges Particular 2012-13 2013-14 2012-13 2013-14 Maintenance Spares (15% of O&M) 4.30 4.72 0.00 0.00 O&M Expenses (1 Month) 2.39 2.62 0.00 0.00 Receivables (2 months) 5.61 6.41 9.83 15.71 Total 12.30 13.76 9.83 15.71 Rate of Interest on Working Capital 13.50% 13.20% 13.50% 13.20% Order in Petition No. 262/TT/2019 Page 29 of 70 Total Interest on Working Capital (Annualized) 1.66 1.82 1.33 2.07 Allowable Fee & Charges (2009-14) Central Portion- Charges State Portion-Charges Particulars 2012-13 (Pro-rata) 2013-14 2012-13 (Pro-rata) 2013-14 Annual Capital Recovery Charge - Loan 1.06 3.24 18.06 57.59 Annual Capital Recovery Charge - Equity 0.63 1.94 10.77 34.59 Annual Capital Recovery Charge - Total 1.69 5.18 28.83 92.18 O&M Expenses 14.32 31.48 0.00 0.00 Interest on Working Capital1 0.83 1.82 0.66 2.07 Total Allowable Fee & Charges (2009-14) 16.84 38.48 29.49 94.26 Wt. Average Rate of Interest (for 2009-14) - Central Portion (` in lakh) 2012-13 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 8.83 0.00 0.00 8.83 8.83 9.2500% 0.82 Bond XL 9.37 0.00 0.24 9.37 9.37 9.3000% 0.87 Bond XLII 0.00 0.00 7.87 0.00 0.00 8.8000% 0.00 Total Loan 18.20 0.00 8.11 18.20 18.20 1.69 9.2757% 2013-14 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 8.83 0.00 0.00 8.83 8.83 9.2500% 0.82 Bond XL 9.61 0.00 0.01 9.61 9.61 9.3000% 0.89 Bond XLII 7.87 0.00 0.00 7.87 7.87 8.8000% 0.69 Bond XLIV 0.00 0.00 12.86 0.00 0.00 8.7000% 0.00 Total Loan 26.31 0.00 12.87 26.31 26.31 2.40 9.1337% Order in Petition No. 262/TT/2019 Page 30 of 70 Wt. Average Rate of Interest (for 2009-14) - State Portion (` in lakh) 2012-13 Loan Opening Repayment Add Cap Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 141.17 0.00 0.00 141.17 141.17 9.2500% 13.06 Bond XL 149.78 0.00 5.24 149.78 149.78 9.3000% 13.93 Bond XLII 0.00 0.00 171.22 0.00 0.00 8.8000% 0.00 Total Loan 290.95 0.00 176.46 290.95 290.95 26.99 9.2757% 2013-14 Loan Opening Repayment Add Cap Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 141.17 0.00 0.00 141.17 141.17 9.2500% 13.06 Bond XL 155.02 0.00 0.21 155.02 155.02 9.3000% 14.42 Bond XLII 171.22 0.00 0.00 171.22 171.22 8.8000% 15.07 Bond XLIV 0.00 0.00 278.83 0.00 0.00 8.7000% 0.00 Total Loan 467.41 0.00 279.04 467.41 467.41 42.54 9.1017% Order in Petition No. 262/TT/2019 Page 31 of 70 Asset-II Central Portion - Charges (2009-14) State Portion - Charges (2009-14) (` in lakh) Particulars Years Years 2013-14 2013-14 Opening Gross Capital Cost 34.81 391.20 Opening Gross Notional Loan 24.37 273.84 Opening Gross Equity 10.44 117.36 Recovered Gross Capital Cost (As on 1st April) 0.00 0.00 Recovered Gross Notional Loan 0.00 0.00 Recovered Gross Equity 0.00 0.00 Opn.Net Capital Cost 34.81 391.20 Opn. Net Notional Loan 24.37 273.84 Opn. Net Equity 10.44 117.36 Recovered Capital Cost (During the Year) 0.99 11.16 Recovered Notional Loan 0.80 9.01 Recovered Equity 0.19 2.15 Cl. Net Capital Cost 33.82 380.04 Cl. Net Notional Loan 23.57 264.83 Cl. Net Equity 10.25 115.21 Additional Capital Expenditure 24.03 207.28 Additional Notional Loan 16.82 145.10 Additional Equity 7.21 62.18 Years (Capital to be recovered up to 31.03.2028) 15.00 15.00 Months 180.00 180.00 Weighted Average Rate of Interest p.a. 9.0582% 9.0582% Weighted Average Rate of Interest p.m. 0.7549% 0.7549% Monthly Recovery Factors -Loan 0.010177 0.010177 Monthly Capital Recovery Charge - Loan 0.25 2.79 Annual Capital Recovery Charge - 2.98 33.44 Order in Petition No. 262/TT/2019 Page 32 of 70 Loan Rate of Return on Equity p.a. 15.500% 15.500% Rate of Return on Equity p.m. 1.292% 1.292% Monthly Recovery Factors -Equity 0.014340 0.014340 Monthly Capital Recovery Charge - Equity 0.15 1.68 Annual Capital Recovery Charge - Equity 1.80 20.20 Monthly Capital Recovery Charge - Total 0.40 4.47 Annual Capital Recovery Charge - Total 4.77 53.64 O&M Expenses (Annualized) 17.45 0.00 Fee & Charges (Annualized) Central Portion - Charges State Portion - Charges Particulars 2013-14 2013-14 Annual Capital Recovery Charge - Loan 2.98 33.44 Annual Capital Recovery Charge - Equity 1.80 20.20 Annual Capital Recovery Charge - Total 4.77 53.64 O&M Expenses 17.45 0.00 Interest on Working Capital1 1.05 1.21 Total Fee & Charges 23.27 54.85 Interest on Working Capital (Annualized) Particular 2013-14 2013-14 Maintenance Spares (15% of O&M) 2.62 0.00 O&M Expenses (1 Month) 1.45 0.00 Receivables (2 months) 3.88 9.14 Total 7.95 9.14 Rate of Interest on Working Capital 13.20% 13.20% Total Interest on Working Capital 1.05 1.21 Allowable Fee & Charges (2009-14) Particulars 2013-14 2013-14 Annual Capital Recovery Charge - Loan 2.98 33.44 Annual Capital Recovery Charge - Equity 1.80 20.20 Annual Capital Recovery Charge - 4.77 53.64 Order in Petition No. 262/TT/2019 Page 33 of 70 Total O&M Expenses 17.45 0.00 Interest on Working Capital1 1.05 1.21 Total Allowable Fee & Charges (2009-14) 23.27 54.85 Wt. Average Rate of Interest (for 2009-14) - Central Portion (` in lakh) 2013-14 Loan Opening Repayment Add Cap Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 4.90 0.00 0.00 4.90 4.90 9.2500% 0.45 Bond XL 8.17 0.00 0.00 8.17 8.17 9.3000% 0.76 Bond XLII 11.29 0.00 0.00 11.29 11.29 8.8000% 0.99 Bond XLIII 0.00 0.00 16.82 0.00 0.00 7.9300% 0.00 Total Loan 24.36 0.00 16.82 24.36 24.36 2.21 9.0582% Wt. Average Rate of Interest (for 2009-14) - State Portion (` in lakh) 2013-14 Loan Opening Repayment Add Cap Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 55.10 0.00 0.00 55.10 55.10 9.2500% 5.10 Bond XL 91.83 0.00 0.00 91.83 91.83 9.3000% 8.54 Bond XLII 126.92 0.00 0.00 126.92 126.92 8.8000% 11.17 Bond XLIII 0.00 0.00 145.10 0.00 0.00 7.9300% 0.00 Total Loan 273.85 0.00 145.10 273.85 273.85 24.81 9.0582% Order in Petition No. 262/TT/2019 Page 34 of 70 Asset-III Central Portion- Charges (2009- State Portion- Charges (2009-14) (` in lakh) Particulars Years Years 2013-14 2013-14 Opening Gross Capital Cost 315.19 254.19 Opening Gross Notional Loan 220.63 177.93 Opening Gross Equity 94.56 76.26 Recovered Gross Capital Cost (As on 1st April) 0.00 0.00 Recovered Gross Notional Loan 0.00 0.00 Recovered Gross Equity 0.00 0.00 Opn.Net Capital Cost 315.19 254.19 Opn. Net Notional Loan 220.63 177.93 Opn. Net Equity 94.56 76.26 Recovered Capital Cost (During the Year) 3.61 2.91 Recovered Notional Loan 2.92 2.35 Recovered Equity 0.69 0.56 Cl. Net Capital Cost 311.58 251.28 Cl. Net Notional Loan 217.71 175.58 Cl. Net Equity 93.87 75.70 Additional Capital Expenditure 5.52 16.00 Additional Notional Loan 3.86 11.20 Additional Equity 1.66 4.80 Years (Capital to be recovered up to 31.10.2028) 15.00 15.00 Months 180.00 180.00 Weighted Average Rate of Interest p.a. 9.1505% 9.1505% Weighted Average Rate of Interest p.m. 0.7625% 0.7625% Monthly Recovery Factors -Loan 0.010232 0.010232 Monthly Capital Recovery Charge - Loan 2.26 1.82 Annual Capital Recovery Charge - Loan 27.09 21.85 Rate of Return on Equity p.a. 15.500% 15.500% Rate of Return on Equity p.m. 1.292% 1.292% Monthly Recovery Factors -Equity 0.014340 0.014340 Monthly Capital Recovery Charge - Equity 1.36 1.09 Annual Capital Recovery Charge - Equity 16.27 13.12 Order in Petition No. 262/TT/2019 Page 35 of 70 Monthly Capital Recovery Charge - Total 3.61 2.91 Annual Capital Recovery Charge - Total 43.36 34.97 O&M Expenses (Annualized) 14.66 0.00 Fee & Charges (Annualized) Central Portion - Charges State Portion - Charges Particulars 2013-14 2013-14 Annual Capital Recovery Charge - Loan 27.09 21.85 Annual Capital Recovery Charge - Equity 16.27 13.12 Annual Capital Recovery Charge - Total 43.36 34.97 O&M Expenses 14.66 0.00 Interest on Working Capital1 1.77 0.79 Total Fee & Charges 59.79 35.76 Interest on Working Capital (Annualized) Particular 2013-14 2013-14 Maintenance Spares (15% of O&M) 2.20 0.00 O&M Expenses (1 Month) 1.22 0.00 Receivables (2 months) 9.96 5.96 Total 13.39 5.96 Rate of Interest on Working Capital 13.20% 13.20% Total Interest on Working Capital 1.77 0.79 Allowable Fee & Charges (2009-14) Particulars 2013-14 (Pro-rata) 2013-14 (Pro-rata) Annual Capital Recovery Charge - Loan 11.29 9.10 Annual Capital Recovery Charge - Equity 6.78 5.47 Annual Capital Recovery Charge - Total 18.07 14.57 O&M Expenses 6.11 0.00 Interest on Working Capital1 0.74 0.33 Total Allowable Fee & Charges (2009-14) 24.91 14.90 Wt. Average Rate of Interest (for 2009-14) - Central Portion (` in lakh) 2013-14 Loan Opening Repayment Add Cap Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 22.14 0.00 0.00 22.14 22.14 9.2500% 2.05 Bond XL 134.72 0.00 0.00 134.72 134.72 9.3000% 12.53 Bond XLII 63.76 0.00 1.52 63.76 63.76 8.8000% 5.61 Bond XLIV 0.00 0.00 2.35 0.00 0.00 8.7000% 0.00 Total Loan 220.62 0.00 3.87 220.62 220.62 20.19 9.1505% Order in Petition No. 262/TT/2019 Page 36 of 70 Wt. Average Rate of Interest (for 2009-14) - State Portion (` in lakh) 2013-14 Loan Opening Repayment Add Cap Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 17.86 0.00 0.00 17.86 17.86 9.2500% 1.65 Bond XL 108.64 0.00 0.00 108.64 108.64 9.3000% 10.10 Bond XLII 51.42 0.00 4.39 51.42 51.42 8.8000% 4.52 Bond XLIV 0.00 0.00 6.80 0.00 0.00 8.7000% 0.00 Total Loan 177.92 0.00 11.19 177.92 177.92 16.28 9.1505% Order in Petition No. 262/TT/2019 Page 37 of 70 Asset-IV State Portion - Charges (2009- (` in lakh) Particulars Years 2013-14 Opening Gross Capital Cost 85.78 Opening Gross Notional Loan 60.04 Opening Gross Equity 25.73 Recovered Gross Capital Cost (As on 1st April) 0.00 Recovered Gross Notional Loan 0.00 Recovered Gross Equity 0.00 Opn.Net Capital Cost 85.78 Opn. Net Notional Loan 60.04 Opn. Net Equity 25.73 Recovered Capital Cost (During the Year) 0.20 Recovered Notional Loan 0.16 Recovered Equity 0.04 Cl. Net Capital Cost 85.58 Cl. Net Notional Loan 59.88 Cl. Net Equity 25.70 Additional Capital Expenditure 1.42 Additional Notional Loan 0.99 Additional Equity 0.43 Years (Capital to be recovered up to 28.02.2029) 15.00 Months 180.00 Weighted Average Rate of Interest p.a. 8.7540% Weighted Average Rate of Interest p.m. 0.7295% Monthly Recovery Factors -Loan 0.009997 Monthly Capital Recovery Charge - Loan 0.60 Annual Capital Recovery Charge - Loan 7.20 Rate of Return on Equity p.a. 15.500% Rate of Return on Equity p.m. 1.292% Monthly Recovery Factors -Equity 0.014340 Monthly Capital Recovery Charge - Equity 0.37 Annual Capital Recovery Charge - Equity 4.43 Monthly Capital Recovery Charge - Total 0.97 Order in Petition No. 262/TT/2019 Page 38 of 70 Annual Capital Recovery Charge - Total 11.63 O&M Expenses (Annualized) 0.00 Fee & Charges (Annualized) State Portion - Charges Particulars 2013-14 Annual Capital Recovery Charge - Loan 7.20 Annual Capital Recovery Charge - Equity 4.43 Annual Capital Recovery Charge - Total 11.63 O&M Expenses 0.00 Interest on Working Capital 0.26 Total Fee & Charges 11.89 Interest on Working Capital (Annualized) Particular 2013-14 Maintenance Spares (15% of O&M) 0.00 O&M Expenses (1 Month) 0.00 Receivables (2 months) 1.98 Total 1.98 Rate of Interest on Working Capital 13.20% Total Interest on Working Capital 0.26 Allowable Fee & Charges (2009-14) Particulars 2013-14 (Pro-rata) Annual Capital Recovery Charge - Loan 0.60 Annual Capital Recovery Charge - Equity 0.37 Annual Capital Recovery Charge - Total 0.97 O&M Expenses 0.00 Interest on Working Capital 0.02 Total Allowable Fee & Charges (2009-14) 0.99 Order in Petition No. 262/TT/2019 Page 39 of 70 Wt. Average Rate of Interest (for 2009-14) - State Portion (` in lakh) 2013-14 Loan Opening Repayment Add Cap Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 12.00 0.00 0.00 12.00 12.00 9.2500% 1.11 Bond XL 6.00 0.00 0.00 6.00 6.00 9.3000% 0.56 Bond XLII 5.00 0.00 0.00 5.00 5.00 8.8000% 0.44 Bond XLIII 16.00 0.00 0.00 16.00 16.00 7.9300% 1.27 Bond XLIV 18.00 0.00 0.00 18.00 18.00 8.7000% 1.57 Bond XLV 0.00 0.00 0.13 0.00 0.00 9.6500% 0.00 SBI (Oct 13 - Dec 13) 3.14 0.00 1.06 3.14 3.14 10.2500% 0.32 Total Loan 60.14 0.00 1.19 60.14 60.14 5.26 8.7540% Order in Petition No. 262/TT/2019 Page 40 of 70 Fee and Charges for the period 2014-19 Capital Expenditure as on 1.4.2014

    46. The closing Capital Costs as indicated at Para 42 above are considered as opening Capital Cost on 1.4.2014 for working out the fee and charges for the period 2014-19 for Assets-I, II, III and IV corresponding to Central Portion and State Portion.

    47. The Petitioner has claimed the following additional capital expenditure during 2014-19 and the same is considered for calculation of fee and charges for 2014-19 period: (` in lakh) Particulars Portion 2014-15 2015-16 2016-17 2017-18 2018-19 Asset-I Central 17.16 3.37 5.34 0.70 12.39 State 401.96 83.44 122.10 4.68 237.61 Total 419.12 86.81 127.44 5.38 250.00 Asset-II Central 28.33 7.42 3.34 0.83 12.30 State 198.94 48.98 46.49 2.56 129.70 Total 227.27 56.40 49.83 3.39 142.00 Asset-III Central 93.95 20.12 17.43 1.91 69.00 State 112.84 24.29 17.36 1.95 56.00 Total 206.69 44.41 34.79 3.86 125.00 Asset-IV Central - - - - - State 13.88 4.38 8.24 2.47 62.00 Debt : Equity Ratio

    48. The following Debt-Equity ratio has been considered as on 1.4.2014 for the Central as well as State Portion:- Order in Petition No. 262/TT/2019 Page 41 of 70 (` in lakh) Asset-I As on 1.4.2019 Central State Loan 66.44 1341.31 Equity 28.47 574.85 Total 94.91 1916.15 Debt (%) 70.00 70.00 Equity (%) 30.00 30.00 Total 100.00 100.00 (` in lakh) Asset-II As on 1.4.2019 Central State Loan 77.74 717.61 Equity 33.32 307.55 Total 111.06 1025.15 Debt (%) 70.00 70.00 Equity (%) 30.00 30.00 Total 100.00 100.00 (` in lakh) Asset-III As on 1.4.2019 Central State Loan 366.11 337.84 Equity 156.91 144.79 Total 523.02 482.63 Debt (%) 70.00 70.00 Equity (%) 30.00 30.00 Total 100.00 100.00 (` in lakh) Rates for Recovery of loan and equity

    49. Capital Recovery for Loan: The year wise Weighted Average Rate of Interest Asset-IV As on 1.4.2019 Central State Loan 124.71 Equity 53.45 Total 178.16 Debt (%) - 70.00 Equity (%) - 30.00 Total - 100.00 Order in Petition No. 262/TT/2019 Page 42 of 70 have been calculated on the basis of the loan portfolio along with rate of interest of loan submitted by the Petitioner for Assets-I, II, III and IV corresponding to Central Portion and State Portion, which have been applied for calculating the Capital Recovery Factor for loan.

    50. Capital Recovery for Equity: The methodology used for true-up of the 2009-14 indicated above, has been applied for Capital Recovery of Equity. Hence, posttax RoE of 15.50%, without grossing has been applied for calculating the Capital Recovery Factor for equity. Monthly Capital Recovery Charges

    51. Accordingly, following are the monthly Recovery factors for Loan for Central Portion and State Portion:- (` in lakh) Asset-I 2014-15 2015-16 2016-17 2017-18 2018-19 Central Portion 0.010680 0.011057 0.011573 0.012151 0.012931 State Portion 0.010657 0.011029 0.011546 0.012120 0.012902 (` in lakh) Asset-II 2014-15 2015-16 2016-17 2017-18 2018-19 Central Portion 0.010255 0.010594 0.011078 0.011638 0.012350 State Portion 0.010296 0.010641 0.011124 0.011671 0.012383 (` in lakh) Asset-III 2014-15 2015-16 2016-17 2017-18 2018-19 Central Portion 0.010394 0.010789 0.011208 0.011687 0.012318 State Portion 0.010384 0.010788 0.011201 0.011679 0.012311 (` in lakh) Asset-IV 2014-15 2015-16 2016-17 2017-18 2018-19 Central Portion - - - - - State Portion 0.010040 0.010445 0.010872 0.011293 0.011877 Order in Petition No. 262/TT/2019 Page 43 of 70

    52. Similarly, the monthly Recovery Factors for Equity for Central portion and State portion are:- (` in lakh) Asset-I 2014-15 2015-16 2016-17 2017-18 2018-19 Central Portion 0.014763 0.015122 0.015565 0.016115 0.016808 State Portion 0.014763 0.015122 0.015565 0.016115 0.016808 (` in lakh) Asset-II 2014-15 2015-16 2016-17 2017-18 2018-19 Central Portion 0.014608 0.014933 0.015332 0.015825 0.016441 State Portion 0.014608 0.014933 0.015332 0.015825 0.016441 (` in lakh) Asset-III 2014-15 2015-16 2016-17 2017-18 2018-19 Central Portion 0.014468 0.014763 0.015122 0.015565 0.016115 State Portion 0.014468 0.014763 0.015122 0.015565 0.016115 (` in lakh) Asset-IV 2014-15 2015-16 2016-17 2017-18 2018-19 Central Portion - - - - - State Portion 0.014360 0.014633 0.014964 0.015369 0.015871

    53. Based on the above recovery factors, the monthly Capital Recovery Charges for Loan for Central and State portion are worked out as below:- (` in lakh) Asset-I 2014-15 2015-16 2016-17 2017-18 2018-19 Central Portion 0.41 0.54 0.56 0.61 0.61 State Portion 7.73 10.79 11.45 12.42 12.46 (` in lakh) Asset-II 2014-15 2015-16 2016-17 2017-18 2018-19 Central Portion 0.41 0.62 0.68 0.70 0.71 State Portion 4.22 5.68 6.06 6.42 6.44 (` in lakh) Asset-III 2014-15 2015-16 2016-17 2017-18 2018-19 Central Portion 2.30 3.02 3.17 3.30 3.31 State Portion 1.94 2.80 2.98 3.11 3.12 Order in Petition No. 262/TT/2019 Page 44 of 70 (` in lakh) Asset-IV 2014-15 2015-16 2016-17 2017-18 2018-19 Central Portion - - - - - State Portion 0.61 0.72 0.75 0.81 0.83

    54. Similarly, the monthly Capital Recovery Charges for Equity for Central as well as State portion are worked out as below:- (` in lakh) Asset-I 2014-15 2015-16 2016-17 2017-18 2018-19 Central Portion 0.24 0.32 0.34 0.36 0.37 State Portion 4.65 6.47 6.86 7.45 7.47 (` in lakh) Asset-II 2014-15 2015-16 2016-17 2017-18 2018-19 Central Portion 0.26 0.38 0.42 0.43 0.44 State Portion 2.59 3.48 3.71 3.93 3.94 (` in lakh) Asset-III 2014-15 2015-16 2016-17 2017-18 2018-19 Central Portion 1.38 1.80 1.89 1.97 1.98 State Portion 1.16 1.66 1.77 1.86 1.87 (` in lakh) Asset-IV 2014-15 2015-16 2016-17 2017-18 2018-19 Central Portion - - - - - State Portion 0.38 0.44 0.46 0.49 0.51

    55. While working out the capital recovery charges for loan, Wt. Average Rate of Interest and Rate of Return on Equity, as indicated above have been considered. Accordingly, the following recovery of Capital during 2014-19 has been worked out:- (` in lakh) Asset-I Capital Central Portion State Portion Total Capital Cost Recovered during 2014-19 Loan 12.67 257.20 269.88 Equity 3.76 76.08 79.83 Total 16.43 333.28 349.71 Order in Petition No. 262/TT/2019 Page 45 of 70 (` in lakh) Asset-II Capital Central Portion State Portion Total Capital Cost Recovered during 2014-19 Loan 14.56 132.51 147.07 Equity 4.12 37.66 41.77 Total 18.68 170.16 188.84 (` in lakh) Asset-III Capital Central Portion State Portion Total Capital Cost Recovered during 2014-19 Loan 62.10 57.67 119.77 Equity 17.74 16.47 34.21 Total 79.85 74.14 153.98 (` in lakh) Asset-IV Capital Central Portion State Portion Total Capital Cost Recovered during 2014-19 Loan - 15.25 15.25 Equity - 4.18 4.18 Total - 19.43 19.43 O&M Expenses

    56. The Petitioner has claimed O&M Expenses for the Central Portion on actual basis for 2014-15, 2015-16, and 2016-17 and escalation of 3.32% thereafter. The Petitioner has not claimed any O&M charges for State portion. The O&M charges were allowed on actual basis by the Commission vide order dated 15.9.2016 in Petition No. 57/TT/2014, and on the same basis it is allowed for 2014-19 period as under:- (` in lakh) Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 (escalation @ 3.32%) Asset I 34.98 36.57 40.21 47.66 49.27 Asset II 19.38 20.45 22.18 24.57 25.39 Asset III 16.23 16.97 18.51 20.44 21.12 Asset IV NA* * O&M under state Portion. Order in Petition No. 262/TT/2019 Page 46 of 70 Interest on working capital (IWC)

    57. IWC has been worked out in line with the methodology explained vide order dated 15.9.2016 in Petition No. 57/TT/2014.

    (i) Maintenance spares: Maintenance spares have been considered at the rate of 15% of O&M expenses each year for the purpose of calculation of working capital.

    (ii) O & M Expenses: One months O&M expenses has been allowed above and has been considered as an element of working capital.

    (iii) Receivables: Receivables, as a component of working capital, have been worked out on the basis of 2 months of fees and charges.

    (iv) Rate of interest on working capital: In line with the Regulation 28(3) of 2014 Tariff Regulations, SBI PLR as on 1.4.2014 (i.e.13.50%) has been considered as the rate of interest on working capital for the asset.

    58. The details of the fees and charges allowed for the Assets-I, II, III and IV for the 2014-19 period are as follows: Order in Petition No. 262/TT/2019 Page 47 of 70 Asset-I Central Portion - Charges (2014-19) State Portion - Charges (2014-19) (` in lakh) Particulars Years Years 2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19 Opening Gross Capital Cost 55.95 73.11 76.48 81.82 82.52 1066.36 1468.32 1551.76 1673.86 1678.54 Opening Gross Notional Loan 39.17 51.18 53.54 57.27 57.76 746.45 1027.82 1086.23 1171.70 1174.98 Opening Gross Equity 16.79 21.93 22.94 24.55 24.76 319.91 440.50 465.53 502.16 503.56 Recovered Gross Capital Cost (As on 1st April) 1.43 3.34 6.16 9.45 13.42 25.82 62.32 119.40 186.64 268.29 Recovered Gross Notional Loan 1.14 2.65 4.88 7.43 10.46 20.73 49.74 94.66 146.85 209.43 Recovered Gross Equity 0.29 0.68 1.29 2.02 2.95 5.09 12.58 24.74 39.79 58.86 Opn.Net Capital Cost 54.52 69.77 70.32 72.37 69.10 1040.54 1406.00 1432.36 1487.22 1410.25 Opn. Net Notional Loan 38.03 48.52 48.66 49.85 47.30 725.72 978.08 991.58 1024.85 965.54 Opn. Net Equity 16.50 21.25 21.66 22.52 21.80 314.82 427.92 440.78 462.37 444.71 Recovered Capital Cost (During the Year) 1.91 2.82 3.29 3.96 4.44 36.50 57.08 67.24 81.65 90.81 Recovered Notional Loan 1.52 2.22 2.55 3.03 3.35 29.01 44.91 52.19 62.59 68.50 Recovered Equity 0.39 0.60 0.74 0.93 1.09 7.49 12.17 15.05 19.06 22.31 Cl. Net Capital Cost 52.61 66.95 67.03 68.40 64.66 1004.04 1348.92 1365.12 1405.57 1319.44 Cl. Net Notional Loan 36.51 46.30 46.11 46.81 43.95 696.71 933.17 939.38 962.27 897.04 Cl. Net Equity 16.10 20.65 20.92 21.59 20.71 307.33 415.75 425.74 443.30 422.40 Additional Capital Expenditure 17.16 3.37 5.34 0.70 12.39 401.96 83.44 122.10 4.68 237.61 Additional Notional Loan 12.01 2.36 3.74 0.49 8.67 281.37 58.41 85.47 3.28 166.33 Additional Equity 5.15 1.01 1.60 0.21 3.72 120.59 25.03 36.63 1.40 71.28 Years (Capital to be recovered up to 30.09.2027) 13.50 12.50 11.50 10.50 9.50 13.50 12.50 11.50 10.50 9.50 Months 162.00 150.00 138.00 126.00 114.00 162.00 150.00 138.00 126.00 114.00 Weighted Average Rate of Interest p.a. 8.9914% 8.8744% 8.8501% 8.7337% 8.7194% 8.9517% 8.8260% 8.8001% 8.6758% 8.6653% Weighted Average Rate of Interest p.m. 0.7493% 0.7395% 0.7375% 0.7278% 0.7266% 0.7460% 0.7355% 0.7333% 0.7230% 0.7221% Monthly Recovery Factors -Loan 0.010680 0.011057 0.011573 0.012151 0.012931 0.010657 0.011029 0.011546 0.012120 0.012902 Order in Petition No. 262/TT/2019 Page 48 of 70 Monthly Capital Recovery Charge - Loan 0.41 0.54 0.56 0.61 0.61 7.73 10.79 11.45 12.42 12.46 Annual Capital Recovery Charge - Loan 4.87 6.44 6.76 7.27 7.34 92.81 129.45 137.38 149.05 149.49 Rate of Return on Equity p.a. 15.500% 15.500% 15.500% 15.500% 15.500% 15.500% 15.500% 15.500% 15.500% 15.500% Rate of Return on Equity p.m. 1.292% 1.292% 1.292% 1.292% 1.292% 1.292% 1.292% 1.292% 1.292% 1.292% Monthly Recovery Factors -Equity 0.014763 0.015122 0.015565 0.016115 0.016808 0.014763 0.015122 0.015565 0.016115 0.016808 Monthly Capital Recovery Charge - Equity 0.24 0.32 0.34 0.36 0.37 4.65 6.47 6.86 7.45 7.47 Annual Capital Recovery Charge - Equity 2.92 3.86 4.05 4.36 4.40 55.77 77.65 82.33 89.41 89.70 Monthly Capital Recovery Charge - Total 0.65 0.86 0.90 0.97 0.98 12.38 17.26 18.31 19.87 19.93 Annual Capital Recovery Charge - Total 7.80 10.29 10.80 11.62 11.74 148.58 207.10 219.71 238.46 239.19 O&M Expenses (Annualized) 34.98 36.57 40.21 47.66 49.27 0.00 0.00 0.00 0.00 0.00 Fee & Charges (2014-19) Central Portion - Charges State Portion - Charges Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19 Annual Capital Recovery Charge - Loan 4.87 6.44 6.76 7.27 7.34 92.81 129.45 137.38 149.05 149.49 Annual Capital Recovery Charge - Equity 2.92 3.86 4.05 4.36 4.40 55.77 77.65 82.33 89.41 89.70 Annual Capital Recovery Charge - Total 7.80 10.29 10.80 11.62 11.74 148.58 207.10 219.71 238.46 239.19 O&M Expenses 34.98 36.57 40.21 47.66 49.27 0.00 0.00 0.00 0.00 0.00 Interest on Working Capital 2.11 2.26 2.47 2.90 2.99 3.42 4.77 5.06 5.49 5.51 Total Fee & Charges 44.89 49.12 53.48 62.18 64.00 152.00 211.87 224.77 243.95 244.69 Interest on Working Capital Particular 2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19 Maintenance Spares (15% of O&M) 5.25 5.49 6.03 7.15 7.39 0.00 0.00 0.00 0.00 0.00 O&M Expenses (1 Month) 2.92 3.05 3.35 3.97 4.11 0.00 0.00 0.00 0.00 0.00 Receivables (2 months) 7.48 8.19 8.91 10.36 10.67 25.33 35.31 37.46 40.66 40.78 Total 15.64 16.72 18.30 21.48 22.16 25.33 35.31 37.46 40.66 40.78 Rate of Interest on Working Capital 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% Total Interest on Working Capital (Annualized) 2.11 2.26 2.47 2.90 2.99 3.42 4.77 5.06 5.49 5.51 Order in Petition No. 262/TT/2019 Page 49 of 70 Wt. Average Rate of Interest (for 2014-19) - Central Portion (` in lakh) 2014-15 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 8.83 0.00 0.00 8.83 8.83 9.2500% 0.82 Bond XL 9.62 0.00 0.00 9.62 9.62 9.3000% 0.89 Bond XLII 7.87 0.00 0.00 7.87 7.87 8.8000% 0.69 Bond XLIV 12.86 0.00 0.00 12.86 12.86 8.7000% 1.12 Bond XLVI 0.00 0.00 3.58 0.00 0.00 9.3000% 0.00 Bond XLIX 0.00 0.00 8.43 0.00 0.00 8.1500% 0.00 Total Loan 39.18 0.00 12.01 39.18 39.18 3.52 8.9914% 2015-16 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 8.83 0.00 0.00 8.83 8.83 9.2500% 0.82 Bond XL 9.62 0.00 0.00 9.62 9.62 9.3000% 0.89 Bond XLII 7.87 0.00 0.00 7.87 7.87 8.8000% 0.69 Bond XLIV 12.86 0.00 0.00 12.86 12.86 8.7000% 1.12 Bond XLVI 3.58 0.00 0.00 3.58 3.58 9.3000% 0.33 Bond XLIX 8.43 0.00 0.00 8.43 8.43 8.1500% 0.69 Bond LI 0.00 0.00 2.36 0.00 0.00 8.4000% 0.00 Total Loan 51.19 0.00 2.36 51.19 51.19 4.54 8.8744% 2016-17 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 8.83 0.00 0.00 8.83 8.83 9.2500% 0.82 Bond XL 9.62 0.80 0.00 8.82 9.22 9.3000% 0.86 Bond XLII 7.87 0.00 0.00 7.87 7.87 8.8000% 0.69 Bond XLIV 12.86 0.00 0.00 12.86 12.86 8.7000% 1.12 Bond XLVI 3.58 0.00 0.00 3.58 3.58 9.3000% 0.33 Bond XLIX 8.43 0.00 0.00 8.43 8.43 8.1500% 0.69 Bond LI 2.36 0.00 0.00 2.36 2.36 8.4000% 0.20 Bond LVII 0.00 0.00 3.74 0.00 0.00 7.2000% 0.00 Total Loan 53.55 0.80 3.74 52.75 53.15 4.70 8.8501% Order in Petition No. 262/TT/2019 Page 50 of 70 2017-18 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 8.83 0.00 0.00 8.83 8.83 9.2500% 0.82 Bond XL 8.82 0.80 0.00 8.02 8.42 9.3000% 0.78 Bond XLII 7.87 0.00 0.00 7.87 7.87 8.8000% 0.69 Bond XLIV 12.86 0.00 0.00 12.86 12.86 8.7000% 1.12 Bond XLVI 3.58 0.00 0.00 3.58 3.58 9.3000% 0.33 Bond XLIX 8.43 0.00 0.00 8.43 8.43 8.1500% 0.69 Bond LI 2.36 0.00 0.00 2.36 2.36 8.4000% 0.20 Bond LVII 3.74 0.00 0.00 3.74 3.74 7.2000% 0.27 SBI-02 (2017-18) (Q-4) 0.00 0.00 0.49 0.00 0.00 7.9500% 0.00 Total Loan 56.49 0.80 0.49 55.69 56.09 4.90 8.7337% 2018-19 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 8.83 0.00 0.00 8.83 8.83 9.2500% 0.82 Bond XL 8.02 0.80 0.00 7.22 7.62 9.3000% 0.71 Bond XLII 7.87 0.00 0.00 7.87 7.87 8.8000% 0.69 Bond XLIV 12.86 4.29 0.00 8.57 10.72 8.7000% 0.93 Bond XLVI 3.58 0.00 0.00 3.58 3.58 9.3000% 0.33 Bond XLIX 8.43 0.00 0.00 8.43 8.43 8.1500% 0.69 Bond LI 2.36 0.00 0.00 2.36 2.36 8.4000% 0.20 Bond LVII 3.74 0.00 0.00 3.74 3.74 7.2000% 0.27 SBI-02 (2017-18) (Q-4) 0.49 0.00 0.00 0.49 0.49 7.9500% 0.04 Total Loan 56.18 5.09 0.00 51.09 53.64 4.68 8.7194% Wt. Average Rate of Interest (for 2014-19) - State Portion (` in lakh) 2014-15 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 141.17 0.00 0.00 141.17 141.17 9.2500% 13.06 Bond XL 155.23 0.00 0.00 155.23 155.23 9.3000% 14.44 Bond XLII 171.22 0.00 0.00 171.22 171.22 8.8000% 15.07 Order in Petition No. 262/TT/2019 Page 51 of 70 Bond XLIV 278.83 0.00 0.00 278.83 278.83 8.7000% 24.26 Bond XLVI 0.00 0.00 83.80 0.00 0.00 9.3000% 0.00 Bond XLIX 0.00 0.00 197.57 0.00 0.00 8.1500% 0.00 Total Loan 746.45 0.00 281.37 746.45 746.45 66.82 8.9517% 2015-16 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 141.17 0.00 0.00 141.17 141.17 9.2500% 13.06 Bond XL 155.23 0.00 0.00 155.23 155.23 9.3000% 14.44 Bond XLII 171.22 0.00 0.00 171.22 171.22 8.8000% 15.07 Bond XLIV 278.83 0.00 0.00 278.83 278.83 8.7000% 24.26 Bond XLVI 83.80 0.00 0.00 83.80 83.80 9.3000% 7.79 Bond XLIX 197.57 0.00 0.00 197.57 197.57 8.1500% 16.10 Bond LI 0.00 0.00 58.41 0.00 0.00 8.4000% 0.00 Total Loan 1027.82 0.00 58.41 1027.82 1027.82 90.72 8.8260% 2016-17 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 141.17 0.00 0.00 141.17 141.17 9.2500% 13.06 Bond XL 155.23 12.94 0.00 142.29 148.76 9.3000% 13.83 Bond XLII 171.22 0.00 0.00 171.22 171.22 8.8000% 15.07 Bond XLIV 278.83 0.00 0.00 278.83 278.83 8.7000% 24.26 Bond XLVI 83.80 0.00 0.00 83.80 83.80 9.3000% 7.79 Bond XLIX 197.57 0.00 0.00 197.57 197.57 8.1500% 16.10 Bond LI 58.41 0.00 0.00 58.41 58.41 8.4000% 4.91 Bond LVII 0.00 0.00 85.47 0.00 0.00 7.2000% 0.00 Total Loan 1086.23 12.94 85.47 1073.29 1079.76 95.02 8.8001% 2017-18 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 141.17 0.00 0.00 141.17 141.17 9.2500% 13.06 Bond XL 142.29 12.94 0.00 129.35 135.82 9.3000% 12.63 Bond XLII 171.22 0.00 0.00 171.22 171.22 8.8000% 15.07 Bond XLIV 278.83 0.00 0.00 278.83 278.83 8.7000% 24.26 Bond XLVI 83.80 0.00 0.00 83.80 83.80 9.3000% 7.79 Bond XLIX 197.57 0.00 0.00 197.57 197.57 8.1500% 16.10 Bond LI 58.41 0.00 0.00 58.41 58.41 8.4000% 4.91 Order in Petition No. 262/TT/2019 Page 52 of 70 Bond LVII 85.47 0.00 0.00 85.47 85.47 7.2000% 6.15 SBI-02 (2017-18) (Q- 0.00 0.00 3.28 0.00 0.00 7.9500% 0.00 Total Loan 1158.76 12.94 3.28 1145.82 1152.29 99.97 8.6758% 2018-19 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 141.17 0.00 0.00 141.17 141.17 9.2500% 13.06 Bond XL 129.35 12.94 0.00 116.41 122.88 9.3000% 11.43 Bond XLII 171.22 0.00 0.00 171.22 171.22 8.8000% 15.07 Bond XLIV 278.83 92.94 0.00 185.89 232.36 8.7000% 20.22 Bond XLVI 83.80 0.00 0.00 83.80 83.80 9.3000% 7.79 Bond XLIX 197.57 0.00 0.00 197.57 197.57 8.1500% 16.10 Bond LI 58.41 0.00 0.00 58.41 58.41 8.4000% 4.91 Bond LVII 85.47 0.00 0.00 85.47 85.47 7.2000% 6.15 SBI-02 (2017-18) (Q- 3.28 0.00 0.00 3.28 3.28 7.9500% 0.26 Total Loan 1149.10 105.88 0.00 1043.22 1096.16 94.99 8.6653% Order in Petition No. 262/TT/2019 Page 53 of 70 Asset-II Central Portion - Charges (2014-19) State Portion - Charges (2014-19) (` in lakh) Particulars Years Years 2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19 Opening Gross Capital Cost 58.84 87.17 94.59 97.93 98.76 598.48 797.42 846.40 892.89 895.45 Opening Gross Notional Loan 41.19 61.02 66.21 68.55 69.13 418.94 558.19 592.48 625.02 626.82 Opening Gross Equity 17.65 26.15 28.38 29.38 29.63 179.54 239.23 253.92 267.87 268.64 Recovered Gross Capital Cost (As on 1st April) 0.99 2.93 6.19 10.11 14.63 11.16 30.76 60.22 94.97 135.90 Recovered Gross Notional Loan 0.80 2.36 4.95 8.03 11.52 9.01 24.74 48.14 75.36 106.98 Recovered Gross Equity 0.19 0.57 1.24 2.08 3.11 2.15 6.02 12.08 19.61 28.92 Opn.Net Capital Cost 57.85 84.24 88.40 87.82 84.13 587.32 766.66 786.18 797.92 759.55 Opn. Net Notional Loan 40.39 58.66 61.26 60.52 57.61 409.93 533.46 544.34 549.67 519.83 Opn. Net Equity 17.46 25.58 27.14 27.30 26.52 177.39 233.21 241.84 248.25 239.72 Recovered Capital Cost (During the Year) 1.94 3.25 3.92 4.52 5.04 19.60 29.47 34.74 40.93 45.42 Recovered Notional Loan 1.56 2.59 3.08 3.49 3.84 15.73 23.40 27.21 31.63 34.53 Recovered Equity 0.38 0.66 0.84 1.02 1.20 3.87 6.06 7.53 9.31 10.89 Cl. Net Capital Cost 55.91 80.98 84.48 83.30 79.09 567.72 737.20 751.43 756.99 714.13 Cl. Net Notional Loan 38.83 56.07 58.19 57.03 53.77 394.20 510.05 517.12 518.04 485.30 Cl. Net Equity 17.08 24.91 26.29 26.27 25.32 173.52 227.14 234.31 238.95 228.83 Additional Capital Expenditure 28.33 7.42 3.34 0.83 12.30 198.94 48.98 46.49 2.56 129.70 Additional Notional Loan 19.83 5.19 2.34 0.58 8.61 139.26 34.29 32.54 1.79 90.79 Additional Equity 8.50 2.23 1.00 0.25 3.69 59.68 14.69 13.95 0.77 38.91 Years (Capital to be recovered up to 31.03.2028) 14.00 13.00 12.00 11.00 10.00 14.00 13.00 12.00 11.00 10.00 Months 168.00 156.00 144.00 132.00 120.00 168.00 156.00 144.00 132.00 120.00 Weighted Average Rate of Interest p.a. 8.5974% 8.4682% 8.4586% 8.4115% 8.4084% 8.6675% 8.5508% 8.5417% 8.4715% 8.4703% Weighted Average Rate of Interest p.m. 0.7164% 0.7057% 0.7049% 0.7010% 0.7007% 0.7223% 0.7126% 0.7118% 0.7060% 0.7059% Monthly Recovery 0.010255 0.010594 0.011078 0.011638 0.012350 0.010296 0.010641 0.011124 0.011671 0.012383 Order in Petition No. 262/TT/2019 Page 54 of 70 Factors -Loan Monthly Capital Recovery Charge - Loan 0.41 0.62 0.68 0.70 0.71 4.22 5.68 6.06 6.42 6.44 Annual Capital Recovery Charge - Loan 4.97 7.46 8.14 8.45 8.54 50.65 68.12 72.66 76.98 77.24 Rate of Return on Equity p.a. 15.500% 15.500% 15.500% 15.500% 15.500% 15.500% 15.500% 15.500% 15.500% 15.500% Rate of Return on Equity p.m. 1.292% 1.292% 1.292% 1.292% 1.292% 1.292% 1.292% 1.292% 1.292% 1.292% Monthly Recovery Factors -Equity 0.014608 0.014933 0.015332 0.015825 0.016441 0.014608 0.014933 0.015332 0.015825 0.016441 Monthly Capital Recovery Charge - Equity 0.26 0.38 0.42 0.43 0.44 2.59 3.48 3.71 3.93 3.94 Annual Capital Recovery Charge - Equity 3.06 4.58 4.99 5.18 5.23 31.10 41.79 44.49 47.14 47.29 Monthly Capital Recovery Charge - Total 0.67 1.00 1.09 1.14 1.15 6.81 9.16 9.76 10.34 10.38 Annual Capital Recovery Charge - Total 8.03 12.04 13.14 13.64 13.77 81.74 109.91 117.16 124.12 124.54 O&M Expenses (Annualized) 19.38 20.45 22.18 24.57 25.39 0.00 0.00 0.00 0.00 0.00 Fee & Charges (2014-19) Central Portion - Charges State Portion - Charges Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19 Annual Capital Recovery Charge - Loan 4.97 7.46 8.14 8.45 8.54 50.65 68.12 72.66 76.98 77.24 Annual Capital Recovery Charge - Equity 3.06 4.58 4.99 5.18 5.23 31.10 41.79 44.49 47.14 47.29 Annual Capital Recovery Charge - Total 8.03 12.04 13.14 13.64 13.77 81.74 109.91 117.16 124.12 124.54 O&M Expenses 19.38 20.45 22.18 24.57 25.39 0.00 0.00 0.00 0.00 0.00 Interest on Working Capital 1.26 1.41 1.53 1.67 1.72 1.88 2.53 2.70 2.86 2.87 Total Fee & Charges 28.67 33.90 36.84 39.88 40.88 83.62 112.44 119.85 126.98 127.40 Interest on Working Capital Particular 2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19 Maintenance Spares (15% of O&M) 2.91 3.07 3.33 3.69 3.81 0.00 0.00 0.00 0.00 0.00 O&M Expenses (1 Month) 1.62 1.70 1.85 2.05 2.12 0.00 0.00 0.00 0.00 0.00 Receivables (2 months) 4.78 5.65 6.14 6.65 6.81 13.94 18.74 19.98 21.16 21.23 Total 9.30 10.42 11.32 12.38 12.74 13.94 18.74 19.98 21.16 21.23 Rate of Interest on Working Capital 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% Total Interest on Working Capital (Annualized) 1.26 1.41 1.53 1.67 1.72 1.88 2.53 2.70 2.86 2.87 Order in Petition No. 262/TT/2019 Page 55 of 70 Wt. Average Rate of Interest (for 2014-19) - Central Portion (` in lakh) 2014-15 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 4.90 0.00 0.00 4.90 4.90 9.2500% 0.45 Bond XL 8.17 0.00 0.00 8.17 8.17 9.3000% 0.76 Bond XLII 11.29 0.00 0.00 11.29 11.29 8.8000% 0.99 Bond XLIII 16.82 0.00 0.00 16.82 16.82 7.9300% 1.33 Bond XLVIII 0.00 0.00 19.83 0.00 0.00 8.2000% 0.00 Total Loan 41.18 0.00 19.83 41.18 41.18 3.54 8.5974% 2015-16 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 4.90 0.00 0.00 4.90 4.90 9.2500% 0.45 Bond XL 8.17 0.00 0.00 8.17 8.17 9.3000% 0.76 Bond XLII 11.29 0.00 0.00 11.29 11.29 8.8000% 0.99 Bond XLIII 16.82 0.00 0.00 16.82 16.82 7.9300% 1.33 Bond XLVIII 19.83 0.00 0.00 19.83 19.83 8.2000% 1.63 Bond LI 0.00 0.00 5.19 0.00 0.00 8.4000% 0.00 Total Loan 61.01 0.00 5.19 61.01 61.01 5.17 8.4682% 2016-17 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 4.90 0.00 0.00 4.90 4.90 9.2500% 0.45 Bond XL 8.17 0.68 0.00 7.49 7.83 9.3000% 0.73 Bond XLII 11.29 0.00 0.00 11.29 11.29 8.8000% 0.99 Bond XLIII 16.82 0.00 0.00 16.82 16.82 7.9300% 1.33 Bond XLVIII 19.83 0.00 0.00 19.83 19.83 8.2000% 1.63 Bond LI 5.19 0.00 0.00 5.19 5.19 8.4000% 0.44 Bond LVII 0.00 0.00 2.34 0.00 0.00 7.2000% 0.00 Total Loan 66.20 0.68 2.34 65.52 65.86 5.57 8.4586% 2017-18 Order in Petition No. 262/TT/2019 Page 56 of 70 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 4.90 0.00 0.00 4.90 4.90 9.2500% 0.45 Bond XL 7.49 0.68 0.00 6.81 7.15 9.3000% 0.66 Bond XLII 11.29 0.00 0.00 11.29 11.29 8.8000% 0.99 Bond XLIII 16.82 1.40 0.00 15.42 16.12 7.9300% 1.28 Bond XLVIII 19.83 0.00 0.00 19.83 19.83 8.2000% 1.63 Bond LI 5.19 0.00 0.00 5.19 5.19 8.4000% 0.44 Bond LVII 2.34 0.00 0.00 2.34 2.34 7.2000% 0.17 SBI-02 (2017-18) (Q- 0.00 0.00 0.58 0.00 0.00 7.9500% 0.00 Total Loan 67.86 2.08 0.58 65.78 66.82 5.62 8.4115% 2018-19 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 4.90 0.00 0.00 4.90 4.90 9.2500% 0.45 Bond XL 6.81 0.68 0.00 6.13 6.47 9.3000% 0.60 Bond XLII 11.29 0.00 0.00 11.29 11.29 8.8000% 0.99 Bond XLIII 15.42 1.40 0.00 14.02 14.72 7.9300% 1.17 Bond XLVIII 19.83 0.00 0.00 19.83 19.83 8.2000% 1.63 Bond LI 5.19 0.00 0.00 5.19 5.19 8.4000% 0.44 Bond LVII 2.34 0.00 0.00 2.34 2.34 7.2000% 0.17 SBI-02 (2017-18) (Q- 0.58 0.00 0.00 0.58 0.58 7.9500% 0.05 Total Loan 66.36 2.08 0.00 64.28 65.32 5.49 8.4084% Wt. Average Rate of Interest (for 2014-19) - State Portion (` in lakh) 2014-15 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 55.10 0.00 0.00 55.10 55.10 9.2500% 5.10 Bond XL 91.83 0.00 0.00 91.83 91.83 9.3000% 8.54 Bond XLII 126.92 0.00 0.00 126.92 126.92 8.8000% 11.17 Bond XLIII 145.10 0.00 0.00 145.10 145.10 7.9300% 11.51 Order in Petition No. 262/TT/2019 Page 57 of 70 Bond XLVIII 0.00 0.00 139.26 0.00 0.00 8.2000% 0.00 Total Loan 418.95 0.00 139.26 418.95 418.95 36.31 8.6675% 2015-16 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 55.10 0.00 0.00 55.10 55.10 9.2500% 5.10 Bond XL 91.83 0.00 0.00 91.83 91.83 9.3000% 8.54 Bond XLII 126.92 0.00 0.00 126.92 126.92 8.8000% 11.17 Bond XLIII 145.10 0.00 0.00 145.10 145.10 7.9300% 11.51 Bond XLVIII 139.26 0.00 0.00 139.26 139.26 8.2000% 11.42 Bond LI 0.00 0.00 34.29 0.00 0.00 8.4000% 0.00 Total Loan 558.21 0.00 34.29 558.21 558.21 47.73 8.5508% 2016-17 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 55.10 0.00 0.00 55.10 55.10 9.2500% 5.10 Bond XL 91.83 0.68 0.00 91.15 91.49 9.3000% 8.51 Bond XLII 126.92 0.00 0.00 126.92 126.92 8.8000% 11.17 Bond XLIII 145.10 0.00 0.00 145.10 145.10 7.9300% 11.51 Bond XLVIII 139.26 0.00 0.00 139.26 139.26 8.2000% 11.42 Bond LI 34.29 0.00 0.00 34.29 34.29 8.4000% 2.88 Bond LVII 0.00 0.00 32.54 0.00 0.00 7.2000% 0.00 Total Loan 592.50 0.68 32.54 591.82 592.16 50.58 8.5417% 2017-18 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 55.10 0.00 0.00 55.10 55.10 9.2500% 5.10 Bond XL 91.15 0.68 0.00 90.47 90.81 9.3000% 8.45 Bond XLII 126.92 0.00 0.00 126.92 126.92 8.8000% 11.17 Bond XLIII 145.10 1.40 0.00 143.70 144.40 7.9300% 11.45 Bond XLVIII 139.26 0.00 0.00 139.26 139.26 8.2000% 11.42 Bond LI 34.29 0.00 0.00 34.29 34.29 8.4000% 2.88 Bond LVII 32.54 0.00 0.00 32.54 32.54 7.2000% 2.34 SBI-02 (2017- 18) (Q-4) 0.00 0.00 1.79 0.00 0.00 7.9500% 0.00 Total Loan 624.36 2.08 1.79 622.28 623.32 52.80 8.4715% Order in Petition No. 262/TT/2019 Page 58 of 70 2018-19 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 55.10 0.00 0.00 55.10 55.10 9.2500% 5.10 Bond XL 90.47 0.68 0.00 89.79 90.13 9.3000% 8.38 Bond XLII 126.92 0.00 0.00 126.92 126.92 8.8000% 11.17 Bond XLIII 143.70 1.40 0.00 142.30 143.00 7.9300% 11.34 Bond XLVIII 139.26 0.00 0.00 139.26 139.26 8.2000% 11.42 Bond LI 34.29 0.00 0.00 34.29 34.29 8.4000% 2.88 Bond LVII 32.54 0.00 0.00 32.54 32.54 7.2000% 2.34 SBI-02 (2017- 18) (Q-4) 1.79 0.00 0.00 1.79 1.79 7.9500% 0.14 Total Loan 624.07 2.08 0.00 621.99 623.03 52.77 8.4703% Order in Petition No. 262/TT/2019 Page 59 of 70 Asset-III Central Portion - Charges (2014-19) State Portion - Charges (2014-19) (` in lakh) Particulars Years Years 2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19 Opening Gross Capital Cost 320.71 414.56 434.68 452.11 454.02 270.19 383.03 407.32 424.68 426.63 Opening Gross Notional Loan 224.50 290.19 304.28 316.48 317.81 189.14 268.12 285.13 297.28 298.64 Opening Gross Equity 96.21 124.37 130.40 135.63 136.21 81.06 114.91 122.20 127.41 127.99 Recovered Gross Capital Cost (As on 1st April) 3.61 13.21 27.10 43.36 62.30 2.91 11.02 23.89 39.19 57.07 Recovered Gross Notional Loan 2.92 10.61 21.60 34.31 48.93 2.35 8.85 19.04 31.01 44.82 Recovered Gross Equity 0.69 2.60 5.50 9.05 13.37 0.56 2.17 4.85 8.19 12.26 Opn.Net Capital Cost 317.10 401.35 407.58 408.75 391.72 267.28 372.02 383.43 385.49 369.56 Opn. Net Notional Loan 221.58 279.58 282.67 282.17 268.89 186.78 259.27 266.09 266.27 253.83 Opn. Net Equity 95.52 121.77 124.91 126.58 122.84 80.50 112.74 117.35 119.22 115.73 Recovered Capital Cost (During the Year) 9.60 13.88 16.26 18.94 21.16 8.10 12.87 15.31 17.88 19.98 Recovered Notional Loan 7.69 10.99 12.70 14.62 16.09 6.50 10.19 11.97 13.81 15.20 Recovered Equity 1.91 2.90 3.55 4.32 5.06 1.61 2.68 3.34 4.07 4.77 Cl. Net Capital Cost 307.50 387.46 391.32 389.81 370.56 259.18 359.14 368.13 367.61 349.58 Cl. Net Notional Loan 213.88 268.59 269.97 267.55 252.79 180.29 249.08 254.12 252.46 238.62 Cl. Net Equity 93.61 118.87 121.35 122.26 117.77 78.89 110.06 114.01 115.15 110.96 Additional Capital Expenditure 93.85 20.12 17.43 1.91 69.00 112.84 24.29 17.36 1.95 56.00 Additional Notional Loan 65.70 14.08 12.20 1.34 48.30 78.99 17.00 12.15 1.37 39.20 Additional Equity 28.16 6.04 5.23 0.57 20.70 33.85 7.29 5.21 0.59 16.80 Years (Capital to be recovered up to 31.10.2028) 14.50 13.50 12.50 11.50 10.50 14.50 13.50 12.50 11.50 10.50 Months 174.00 162.00 150.00 138.00 126.00 174.00 162.00 150.00 138.00 126.00 Weighted Average Rate of Interest p.a. 9.1434% 9.1789% 9.1399% 9.0549% 9.0408% 9.1261% 9.1774% 9.1283% 9.0402% 9.0263% Weighted Average Rate of Interest p.m. 0.7619% 0.7649% 0.7617% 0.7546% 0.7534% 0.7605% 0.7648% 0.7607% 0.7534% 0.7522% Monthly Recovery Factors -Loan 0.010394 0.010789 0.011208 0.011687 0.012318 0.010384 0.010788 0.011201 0.011679 0.012311 Monthly Capital Recovery Charge - Loan 2.30 3.02 3.17 3.30 3.31 1.94 2.80 2.98 3.11 3.12 Order in Petition No. 262/TT/2019 Page 60 of 70 Annual Capital Recovery Charge - Loan 27.64 36.19 38.02 39.57 39.75 23.27 33.56 35.77 37.32 37.50 Rate of Return on Equity p.a. 15.500% 15.500% 15.500% 15.500% 15.500% 15.500% 15.500% 15.500% 15.500% 15.500% Rate of Return on Equity p.m. 1.292% 1.292% 1.292% 1.292% 1.292% 1.292% 1.292% 1.292% 1.292% 1.292% Monthly Recovery Factors -Equity 0.014468 0.014763 0.015122 0.015565 0.016115 0.014468 0.014763 0.015122 0.015565 0.016115 Monthly Capital Recovery Charge - Equity 1.38 1.80 1.89 1.97 1.98 1.16 1.66 1.77 1.86 1.87 Annual Capital Recovery Charge - Equity 16.58 21.57 22.67 23.64 23.75 13.98 19.97 21.30 22.27 22.38 Monthly Capital Recovery Charge - Total 3.69 4.81 5.06 5.27 5.29 3.10 4.46 4.76 4.97 4.99 Annual Capital Recovery Charge - Total 44.22 57.77 60.68 63.22 63.50 37.25 53.54 57.06 59.59 59.88 O&M Expenses (Annualized) 16.23 16.97 18.51 20.44 21.12 0.00 0.00 0.00 0.00 0.00 Fee & Charges (2014-19) Central Portion - Charges State Portion - Charges Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19 Annual Capital Recovery Charge - Loan 27.64 36.19 38.02 39.57 39.75 23.27 33.56 35.77 37.32 37.50 Annual Capital Recovery Charge - Equity 16.58 21.57 22.67 23.64 23.75 13.98 19.97 21.30 22.27 22.38 Annual Capital Recovery Charge - Total 44.22 57.77 60.68 63.22 63.50 37.25 53.54 57.06 59.59 59.88 O&M Expenses 16.23 16.97 18.51 20.44 21.12 0.00 0.00 0.00 0.00 0.00 Interest on Working Capital 1.91 2.27 2.42 2.58 2.63 0.86 1.23 1.31 1.37 1.38 Total Fee & Charges 62.36 77.00 81.61 86.24 87.25 38.11 54.77 58.37 60.96 61.26 Interest on Working Capital Particular 2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19 Maintenance Spares (15% of O&M) 2.43 2.55 2.78 3.07 3.17 0.00 0.00 0.00 0.00 0.00 O&M Expenses (1 Month) 1.35 1.41 1.54 1.70 1.76 0.00 0.00 0.00 0.00 0.00 Receivables (2 months) 10.39 12.83 13.60 14.37 14.54 6.35 9.13 9.73 10.16 10.21 Total 14.18 16.79 17.92 19.14 19.47 6.35 9.13 9.73 10.16 10.21 Rate of Interest on Working Capital 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% 13.50% Total Interest on Working Capital (Annualized) 1.91 2.27 2.42 2.58 2.63 0.86 1.23 1.31 1.37 1.38 Order in Petition No. 262/TT/2019 Page 61 of 70 Wt. Average Rate of Interest (for 2014-19) - Central Portion (` in lakh) 2014-15 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 22.14 0.00 0.00 22.14 22.14 9.2500% 2.05 Bond XL 134.72 0.00 0.00 134.72 134.72 9.3000% 12.53 Bond XLII 65.28 0.00 0.00 65.28 65.28 8.8000% 5.74 Bond XLIV 2.35 0.00 0.00 2.35 2.35 8.7000% 0.20 Bond XLVI 0.00 0.00 65.77 0.00 0.00 9.3000% 0.00 Total Loan 224.49 0.00 65.77 224.49 224.49 20.53 9.1434% 2015-16 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 22.14 0.00 0.00 22.14 22.14 9.2500% 2.05 Bond XL 134.72 0.00 0.00 134.72 134.72 9.3000% 12.53 Bond XLII 65.28 0.00 0.00 65.28 65.28 8.8000% 5.74 Bond XLIV 2.35 0.00 0.00 2.35 2.35 8.7000% 0.20 Bond XLVI 65.77 0.00 0.00 65.77 65.77 9.3000% 6.12 Bond L 0.00 0.00 14.09 0.00 0.00 8.4000% 0.00 Total Loan 290.26 0.00 14.09 290.26 290.26 26.64 9.1789% 2016-17 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 22.14 0.00 0.00 22.14 22.14 9.2500% 2.05 Bond XL 134.72 11.23 0.00 123.49 129.11 9.3000% 12.01 Bond XLII 65.28 0.00 0.00 65.28 65.28 8.8000% 5.74 Bond XLIV 2.35 0.00 0.00 2.35 2.35 8.7000% 0.20 Bond XLVI 65.77 0.00 0.00 65.77 65.77 9.3000% 6.12 Bond L 14.09 0.00 0.00 14.09 14.09 8.4000% 1.18 Bond LVII 0.00 0.00 12.20 0.00 0.00 7.2000% 0.00 Total Loan 304.35 11.23 12.20 293.12 298.74 27.30 9.1399% 2017-18 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Order in Petition No. 262/TT/2019 Page 62 of 70 Bond XXXVIII 22.14 0.00 0.00 22.14 22.14 9.2500% 2.05 Bond XL 123.49 11.23 0.00 112.26 117.88 9.3000% 10.96 Bond XLII 65.28 0.00 0.00 65.28 65.28 8.8000% 5.74 Bond XLIV 2.35 0.00 0.00 2.35 2.35 8.7000% 0.20 Bond XLVI 65.77 0.00 0.00 65.77 65.77 9.3000% 6.12 Bond L 14.09 0.00 0.00 14.09 14.09 8.4000% 1.18 Bond LVII 12.20 0.00 0.00 12.20 12.20 7.2000% 0.88 SBI-02 (2017- 18) (Q-4) 0.00 0.00 1.34 0.00 0.00 7.9500% 0.00 Total Loan 305.32 11.23 1.34 294.09 299.71 27.14 9.0549% 2018-19 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 22.14 0.00 0.00 22.14 22.14 9.2500% 2.05 Bond XL 112.26 11.23 0.00 101.03 106.65 9.3000% 9.92 Bond XLII 65.28 0.00 0.00 65.28 65.28 8.8000% 5.74 Bond XLIV 2.35 0.78 0.00 1.57 1.96 8.7000% 0.17 Bond XLVI 65.77 0.00 0.00 65.77 65.77 9.3000% 6.12 Bond L 14.09 0.00 0.00 14.09 14.09 8.4000% 1.18 Bond LVII 12.20 0.00 0.00 12.20 12.20 7.2000% 0.88 SBI-02 (2017- 18) (Q-4) 1.34 0.00 0.00 1.34 1.34 7.9500% 0.11 Total Loan 295.43 12.01 0.00 283.42 289.43 26.17 9.0408% Wt. Average Rate of Interest (for 2014-19) - State Portion (` in lakh) 2014-15 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 17.86 0.00 0.00 17.86 17.86 9.2500% 1.65 Bond XL 108.64 0.00 0.00 108.64 108.64 9.3000% 10.10 Bond XLII 55.81 0.00 0.00 55.81 55.81 8.8000% 4.91 Bond XLIV 6.80 0.00 0.00 6.80 6.80 8.7000% 0.59 Bond XLVI 0.00 0.00 78.99 0.00 0.00 9.3000% 0.00 Total Loan 189.11 0.00 78.99 189.11 189.11 17.26 9.1261% 2015-16 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Order in Petition No. 262/TT/2019 Page 63 of 70 Bond XXXVIII 17.86 0.00 0.00 17.86 17.86 9.2500% 1.65 Bond XL 108.64 0.00 0.00 108.64 108.64 9.3000% 10.10 Bond XLII 55.81 0.00 0.00 55.81 55.81 8.8000% 4.91 Bond XLIV 6.80 0.00 0.00 6.80 6.80 8.7000% 0.59 Bond XLVI 78.99 0.00 0.00 78.99 78.99 9.3000% 7.35 Bond L 0.00 0.00 17.00 0.00 0.00 8.4000% 0.00 Total Loan 268.10 0.00 17.00 268.10 268.10 24.60 9.1774% 2016-17 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 17.86 0.00 0.00 17.86 17.86 9.2500% 1.65 Bond XL 108.64 9.05 0.00 99.59 104.12 9.3000% 9.68 Bond XLII 55.81 0.00 0.00 55.81 55.81 8.8000% 4.91 Bond XLIV 6.80 0.00 0.00 6.80 6.80 8.7000% 0.59 Bond XLVI 78.99 0.00 0.00 78.99 78.99 9.3000% 7.35 Bond L 17.00 0.00 0.00 17.00 17.00 8.4000% 1.43 Bond LVII 0.00 0.00 12.15 0.00 0.00 7.2000% 0.00 Total Loan 285.10 9.05 12.15 276.05 280.58 25.61 9.1283% 2017-18 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 17.86 0.00 0.00 17.86 17.86 9.2500% 1.65 Bond XL 99.59 9.05 0.00 90.54 95.07 9.3000% 8.84 Bond XLII 55.81 0.00 0.00 55.81 55.81 8.8000% 4.91 Bond XLIV 6.80 0.00 0.00 6.80 6.80 8.7000% 0.59 Bond XLVI 78.99 0.00 0.00 78.99 78.99 9.3000% 7.35 Bond L 17.00 0.00 0.00 17.00 17.00 8.4000% 1.43 Bond LVII 12.15 0.00 0.00 12.15 12.15 7.2000% 0.87 SBI-02 (2017- 18) (Q-4) 0.00 0.00 1.36 0.00 0.00 7.9500% 0.00 Total Loan 288.20 9.05 1.36 279.15 283.68 25.64 9.0402% 2018-19 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 17.86 0.00 0.00 17.86 17.86 9.2500% 1.65 Bond XL 90.54 9.05 0.00 81.49 86.02 9.3000% 8.00 Bond XLII 55.81 0.00 0.00 55.81 55.81 8.8000% 4.91 Order in Petition No. 262/TT/2019 Page 64 of 70 Bond XLIV 6.80 0.00 0.00 6.80 6.80 8.7000% 0.59 Bond XLVI 78.99 0.00 0.00 78.99 78.99 9.3000% 7.35 Bond L 17.00 0.00 0.00 17.00 17.00 8.4000% 1.43 Bond LVII 12.15 0.00 0.00 12.15 12.15 7.2000% 0.87 SBI-02 (2017- 18) (Q-4) 1.36 0.00 0.00 1.36 1.36 7.9500% 0.11 Total Loan 280.51 9.05 0.00 271.46 275.99 24.91 9.0263% Order in Petition No. 262/TT/2019 Page 65 of 70 Asset-IV State Portion - Charges (2014-19) (` in lakh) Particulars Years 2014-15 2015-16 2016-17 2017-18 2018-19 Opening Gross Capital Cost 87.19 101.07 105.45 113.69 116.16 Opening Gross Notional Loan 61.04 70.75 73.82 79.59 81.31 Opening Gross Equity 26.16 30.32 31.64 34.11 34.85 Recovered Gross Capital Cost (As on 1st April) 0.20 2.76 6.03 9.82 14.41 Recovered Gross Notional Loan 0.16 2.23 4.85 7.83 11.41 Recovered Gross Equity 0.04 0.52 1.18 1.99 3.00 Opn.Net Capital Cost 87.00 98.32 99.42 103.88 101.75 Opn. Net Notional Loan 60.87 68.52 68.97 71.75 69.91 Opn. Net Equity 26.12 29.80 30.45 32.12 31.85 Recovered Capital Cost (During the Year) 2.56 3.27 3.79 4.59 5.22 Recovered Notional Loan 2.07 2.62 2.99 3.58 4.00 Recovered Equity 0.49 0.66 0.80 1.02 1.21 Cl. Net Capital Cost 84.44 95.04 95.64 99.28 96.54 Cl. Net Notional Loan 58.80 65.90 65.98 68.18 65.90 Cl. Net Equity 25.64 29.14 29.65 31.11 30.64 Additional Capital Expenditure 13.88 4.38 8.24 2.47 62.00 Additional Notional Loan 9.72 3.07 5.77 1.73 43.40 Additional Equity 4.16 1.31 2.47 0.74 18.60 Years (Capital to be recovered up to 28.02.2029) 14.92 13.92 12.92 11.92 10.92 Months 179.00 167.00 155.00 143.00 131.00 Weighted Average Rate of Interest p.a. 8.7817% 8.8697% 8.8916% 8.7648% 8.7499% Weighted Average Rate of Interest p.m. 0.7318% 0.7391% 0.7410% 0.7304% 0.7292% Monthly Recovery Factors - Loan 0.010040 0.010445 0.010872 0.011293 0.011877 Monthly Capital Recovery Charge - Loan 0.61 0.72 0.75 0.81 0.83 Annual Capital Recovery Charge - Loan 7.33 8.59 9.00 9.72 9.96 Rate of Return on Equity p.a. 15.500% 15.500% 15.500% 15.500% 15.500% Order in Petition No. 262/TT/2019 Page 66 of 70 Rate of Return on Equity p.m. 1.292% 1.292% 1.292% 1.292% 1.292% Monthly Recovery Factors - Equity 0.014360 0.014633 0.014964 0.015369 0.015871 Monthly Capital Recovery Charge - Equity 0.38 0.44 0.46 0.49 0.51 Annual Capital Recovery Charge - Equity 4.50 5.23 5.47 5.92 6.07 Monthly Capital Recovery Charge - Total 0.99 1.15 1.21 1.30 1.34 Annual Capital Recovery Charge - Total 11.84 13.82 14.47 15.65 16.03 O&M Expenses (Annualized) 0.00 0.00 0.00 0.00 0.00 Fee & Charges (2014-19) State Portion - Charges Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 Annual Capital Recovery Charge - Loan 7.33 8.59 9.00 9.72 9.96 Annual Capital Recovery Charge - Equity 4.50 5.23 5.47 5.92 6.07 Annual Capital Recovery Charge - Total 11.84 13.82 14.47 15.65 16.03 O&M Expenses 0.00 0.00 0.00 0.00 0.00 Interest on Working Capital 0.27 0.32 0.33 0.36 0.37 Total Fee & Charges 12.11 14.14 14.80 16.01 16.40 Interest on Working Capital Particular 2014-15 2015-16 2016-17 2017-18 2018-19 Maintenance Spares (15% of O&M) 0.00 0.00 0.00 0.00 0.00 O&M Expenses (1 Month) 0.00 0.00 0.00 0.00 0.00 Receivables (2 months) 2.02 2.36 2.47 2.67 2.73 Total 2.02 2.36 2.47 2.67 2.73 Rate of Interest on Working Capital 13.50% 13.50% 13.50% 13.50% 13.50% Total Interest on Working Capital (Annualized) 0.27 0.32 0.33 0.36 0.37 Order in Petition No. 262/TT/2019 Page 67 of 70 Wt. Average Rate of Interest (for 2014-19) - State Portion (` in lakh) 2014-15 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 12.00 0.00 9.72 12.00 12.00 9.2500% 1.11 Bond XL 6.00 0.00 0.00 6.00 6.00 9.3000% 0.56 Bond XLII 5.00 0.00 0.00 5.00 5.00 8.8000% 0.44 Bond XLIII 16.00 0.00 0.00 16.00 16.00 7.9300% 1.27 Bond XLIV 18.00 0.00 0.00 18.00 18.00 8.7000% 1.57 Bond XLV 0.13 0.00 0.00 0.13 0.13 9.6500% 0.01 SBI (Oct 13 - Dec 4.20 0.00 1.23 4.20 4.20 10.2500% 0.43 Total Loan 61.33 0.00 10.95 61.33 61.33 5.39 8.7817% 2015-16 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 21.72 0.00 0.00 21.72 21.72 9.2500% 2.01 Bond XL 6.00 0.00 0.00 6.00 6.00 9.3000% 0.56 Bond XLII 5.00 0.00 0.00 5.00 5.00 8.8000% 0.44 Bond XLIII 16.00 0.00 0.00 16.00 16.00 7.9300% 1.27 Bond XLIV 18.00 0.00 0.00 18.00 18.00 8.7000% 1.57 Bond XLV 0.13 0.00 0.00 0.13 0.13 9.6500% 0.01 SBI (Oct 13 - Dec 5.43 0.00 0.00 5.43 5.43 10.2500% 0.56 SBI (10000) 0.00 0.00 3.07 0.00 0.00 9.5500% 0.00 Total Loan 72.28 0.00 3.07 72.28 72.28 6.41 8.8697% 2016-17 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 21.72 0.00 0.00 21.72 21.72 9.2500% 2.01 Bond XL 6.00 0.50 0.00 5.50 5.75 9.3000% 0.53 Bond XLII 5.00 0.00 0.00 5.00 5.00 8.8000% 0.44 Bond XLIII 16.00 0.00 0.00 16.00 16.00 7.9300% 1.27 Bond XLIV 18.00 0.00 0.00 18.00 18.00 8.7000% 1.57 Bond XLV 0.13 0.00 0.00 0.13 0.13 9.6500% 0.01 SBI (Oct 13 - Dec 5.43 0.50 0.00 4.93 5.18 10.2500% 0.53 Order in Petition No. 262/TT/2019 Page 68 of 70 SBI (10000) 3.07 0.00 0.00 3.07 3.07 9.5500% 0.29 Bond LVII 0.00 0.00 5.77 0.00 0.00 7.2000% 0.00 Total Loan 75.35 1.00 5.77 74.35 74.85 6.66 8.8916% 2017-18 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 21.72 0.00 0.00 21.72 21.72 9.2500% 2.01 Bond XL 5.50 0.50 0.00 5.00 5.25 9.3000% 0.49 Bond XLII 5.00 0.00 0.00 5.00 5.00 8.8000% 0.44 Bond XLIII 16.00 1.33 0.00 14.67 15.34 7.9300% 1.22 Bond XLIV 18.00 0.00 0.00 18.00 18.00 8.7000% 1.57 Bond XLV 0.13 0.01 0.00 0.12 0.13 9.6500% 0.01 SBI (Oct 13 - Dec 4.93 0.50 0.00 4.43 4.68 10.2500% 0.48 SBI (10000) 3.07 0.00 0.00 3.07 3.07 9.5500% 0.29 Bond LVII 5.77 0.00 0.00 5.77 5.77 7.2000% 0.42 SBI-02 (2017-18) (Q-4) 0.00 0.00 1.73 0.00 0.00 7.9500% 0.00 Total Loan 80.12 2.34 1.73 77.78 78.95 6.92 8.7648% 2018-19 Loan Opening Repayment Add Closing Average Rate of interest Interest Weighted Average Rate of Interest Bond XXXVIII 21.72 0.00 0.00 21.72 21.72 9.2500% 2.01 Bond XL 5.00 0.50 0.00 4.50 4.75 9.3000% 0.44 Bond XLII 5.00 0.00 0.00 5.00 5.00 8.8000% 0.44 Bond XLIII 14.67 1.33 0.00 13.34 14.01 7.9300% 1.11 Bond XLIV 18.00 6.00 0.00 12.00 15.00 8.7000% 1.31 Bond XLV 0.12 0.01 0.00 0.11 0.12 9.6500% 0.01 SBI (Oct 13 - Dec 4.43 0.50 0.00 3.93 4.18 10.2500% 0.43 SBI (10000) 3.07 0.00 0.00 3.07 3.07 9.5500% 0.29 Bond LVII 5.77 0.00 0.00 5.77 5.77 7.2000% 0.42 SBI-02 (2017-18) (Q-4) 1.73 0.00 0.00 1.73 1.73 7.9500% 0.14 Total Loan 79.51 8.34 0.00 71.17 75.34 6.59 8.7499% Order in Petition No. 262/TT/2019 Page 69 of 70 Filing fee and the publication expenses

    59. The Petitioner has sought reimbursement of fee paid by it for filing the petition and publication expenses. The Petitioner is entitled for reimbursement of the filing fees and publication expenses in connection with the present petition, directly from the beneficiaries on pro-rata basis in accordance with Regulation 52(1) of the 2014 Tariff Regulations. License fee and RLDC Fees and Charges

    60. The Petitioner has requested to allow it to bill and recover license fee and RLDC fees and charges, separately from the Respondents. The Petitioner is entitled for reimbursement of licence fee and RLDC fees and charges in accordance with Regulation 52(2)(b) and 52(2)(a) respectively of the 2014 Tariff Regulations. Goods and Services Tax

    61. The Petitioner has prayed for reimbursement of GST. GST is not levied on transmission service at present and we are of the view that Petitioners prayer is premature. Sharing of Charges

    62. The fee and charges allowed in this order for the 2009-14 period for the Central Portion shall be shared by the respondents in accordance with Para 44 of the Order dated 15.9.2016 in Petition No. 57/TT/2014. Order in Petition No. 262/TT/2019 Page 70 of 70

    63. The fees and charges allowed for the State Portion for the 2009-14 period in this order shall be shared by the respective State in proportion to the capital cost belonging to respective State.

    64. As provided in Regulation 43(2) of the 2014 Tariff Regulations, the fees and charges allowed in this order for the 2014-19 period for the Central Portion shall be shared in terms of the Central Electricity Regulatory Commission (Sharing of Inter State Transmission Charges and Losses) Regulations, 2010 as amended from time to time. The fees and charges for the State Portion shall be recovered from respective states.

    65. Further, as specified under Regulation 5 of Central Electricity Regulatory Commission (Sharing of revenue derived from utilization of transmission assets for other business) Regulations, 2007, the revenue earned by the petitioner from utilisation of these assets for other business shall be adjusted on monthly basis in the bills of the respective month.

    66. This order disposes of Petition No. 262/TT/2019. sd/- sd/- sd/- (I. S. Jha) (Dr. M. K. Iyer) (P. K. Pujari) Member Member Chairperson

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