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Power Grid Corporati... v. Madhya Pradesh Power...
Factual and Procedural Background
The Commission issued an order dated 27.1.2021 in Petition No. 395/TT/2019 revising the transmission tariff for the periods 2004-2009 and 2009-2014, truing up the tariff for 2014-2019, and determining the tariff for 1.4.2019 to 31.3.2024 for various assets under the Vindhyachal Stage-III Transmission System in the Western Region. Subsequently, inadvertent errors were identified in the original order, specifically in paragraph 15 relating to tariffs allowed in earlier orders and paragraph 16 detailing the tariff claimed by the Petitioner. This corrigendum order was passed to rectify those errors under Regulation 103A of the Central Electricity Regulatory Commission (Conduct of Business) Regulations, 1999.
Legal Issues Presented
The opinion addresses a procedural matter and does not frame distinct legal issues.
Arguments of the Parties
The opinion does not contain a detailed account of the parties' legal arguments.
Table of Precedents Cited
No precedents were cited in the provided opinion.
Court's Reasoning and Analysis
The court identified inadvertent errors in the original tariff order related to the transmission assets. Exercising powers under Regulation 103A of the Central Electricity Regulatory Commission (Conduct of Business) Regulations, 1999, it issued this corrigendum to rectify those errors. The corrections involved revising detailed tariff tables in paragraphs 15 and 16 of the original order, while maintaining all other terms unchanged. The reasoning reflects a procedural correction to ensure accuracy and consistency in tariff determination.
Holding and Implications
The corrigendum order rectifying inadvertent errors in the original tariff order dated 27.1.2021 is upheld.
The direct effect of this decision is the correction of tariff figures for the specified transmission assets for the relevant tariff periods. No new precedent was established, and all other terms of the original order remain unchanged.
1. The Commission vide order dated 27.1.2021 in Petition No. 395/TT/2019 had revised the transmission tariff of 2004-2009 and 2009-2014 tariff periods, trued up the transmission tariff of the 2014-2019 tariff period and determined transmission tariff for the period from 1.4.2019 to 31.3.2024 in respect of the following assets under “Vindhyachal Stage-III Transmission System” in Western Region (hereinafter referred to as “the Transmission Project”):
Asset-I: Ckt-III of 400 kV D/C Vindhyachal-Satna transmission line along with associated bays.
Asset-II: 400/220 kV, 315 MVA ICT-II at Satna Sub-station.
Asset-III: Ckt-IV of 400 kV D/C Vindhyachal-Satna line along with associated bays.
Asset-IV: LILO of 400 kV Satna-Bina Ckt-I & II at Bina (Power Grid) Sub-station.
Asset-V: Circuit IV of 400 kV D/C Satna-Bina transmission line.
Asset-VI: Circuit III of 400 kV D/C Satna-Bina transmission line.
Asset VII: LILO of 400 kV D/C Raipur-Rourkela transmission line alongwith associated bays; and
Asset VIII: 400/220 kV 315 MVA ICT-II along with associated bays equipment at Raigarh Sub-station.
2. In order to rectify certain inadvertent errors that have crept in the said order dated 27.1.2021 in Petition No. 395/TT/2019, this corrigendum order is being passed.
2. Certain inadvertent errors have been observed in the order dated 27.1.2021 in paragraph 15 pertaining to the tariff allowed for the transmission assets in earlier orders and in paragraph 16 which gives the details of the transmission tariff claimed by the Petitioner.
3. These inadvertent errors are being rectified in the present corrigendum order in exercise of powers under Regulation 103A of the Central Electricity Regulatory Commission (Conduct of Business) Regulations, 1999.
4. Accordingly, the following changes are being made to the order dated 27.1.2021.
i) Tables under paragraph 15 are revised as follows:
(Rs. in lakh)
Asset-I Particulars 2006-07 2007-08 2008-09 Depreciation 244.94 502.02 508.91 Interest on Loan 549.68 1098.29 1071.21 Return on Equity 392.12 803.56 813.98 Advance against Depreciation 0.00 0.00 0.00 Interest on Working Capital 31.41 64.01 65.13 O&M Expenses 46.98 97.50 101.61 Total 1265.13 2565.38 2560.84
(Rs. in lakh)
Asset-II Particulars 2006-07 2007-08 2008-09 Depreciation 23.91 58.23 59.09 Interest on Loan 38.89 91.39 87.89 Return on Equity 27.70 67.44 68.43 Advance against Depreciation 0.00 0.00 0.00 Interest on Working Capital 3.57 8.74 8.95 O&M Expenses 50.70 126.52 131.60 Total 144.78 352.32 355.96
(Rs. in lakh)
Asset-III Particulars 2006-07 2007-08 2008-09 Depreciation 56.12 168.36 169.07 Interest on Loan 122.68 358.43 345.76 Return on Equity 86.55 259.65 260.80 Advance against Depreciation 0.00 0.00 0.00 Interest on Working Capital 7.58 22.79 23.10 O&M Expenses 31.32 97.50 101.61 Total 304.25 906.73 900.34
(Rs. in lakh)
Asset-IV Particulars 2007-08 2008-09 Depreciation 89.25 102.60 Interest on Loan 157.27 183.78 Return on Equity 112.56 135.58 Advance against Depreciation 0.00 0.00 Interest on Working Capital 14.55 16.20 O&M Expenses 126.90 131.99 Total 500.53 570.16
(Rs. in lakh)
Asset-V Particulars 2007-08 2008-09 Depreciation 318.37 446.37 Interest on Loan 708.34 958.14 Return on Equity 495.56 692.17 Advance against Depreciation 0.00 0.00 Interest on Working Capital 49.21 68.05 O&M Expenses 99.58 138.31 Total 1671.06 2303.04
(Rs. in lakh)
Asset-VI Particulars 2007-08 2008-09 Depreciation 103.11 188.35 Interest on Loan 226.56 396.51 Return on Equity 155.79 281.05 Advance against Depreciation 0.00 0.00 Interest on Working Capital 17.03 30.34 O&M Expenses 77.45 138.31 Total 579.94 1034.56
(Rs. in lakh)
Asset-VII Particulars 2007-08 2008-09 Depreciation 57.28 244.57 Interest on Loan 100.05 453.73 Return on Equity 72.71 312.70 Advance against Depreciation 0.00 0.00 Interest on Working Capital 9.22 39.27 O&M Expenses 73.50 305.83 Total 312.76 1356.10
(Rs. in lakh)
Asset-VIII Particulars 2007-08 2008-09 Depreciation 6.79 43.33 Interest on Loan 11.14 73.37 Return on Equity 7.92 50.55 Advance against Depreciation 0.00 0.00 Interest on Working Capital 1.43 9.00 O&M Expenses 21.09 131.60 Total 48.37 307.85
ii) Tables under paragraph 16 are revised as follows:
(Rs. in lakh)
Asset-I Particulars 2006-07 2007-08 2008-09 Depreciation 244.94 502.02 508.91 Interest on Loan 554.84 1141.02 1157.18 Return on Equity 392.12 803.56 813.98 Advance against Depreciation 0.00 0.00 0.00 Interest on Working Capital 31.68 66.21 68.43 O&M Expenses 46.98 97.50 101.61 Total 1270.55 2610.31 2650.11
(Rs. in lakh)
Asset-II Particulars 2006-07 2007-08 2008-09 Depreciation 23.91 58.23 59.09 Interest on Loan 39.33 95.87 97.40 Return on Equity 27.70 67.44 68.43 Advance against Depreciation 0.00 0.00 0.00 Interest on Working Capital 3.59 8.92 9.25 O&M Expenses 50.70 126.52 131.60 Total 145.23 356.99 365.77
(Rs. in lakh)
Asset-III Particulars 2006-07 2007-08 2008-09 Depreciation 56.12 168.36 169.07 Interest on Loan 123.49 370.48 372.12 Return on Equity 86.55 259.65 260.80 Advance against Depreciation 0.00 0.00 0.00 Interest on Working Capital 7.59 23.25 23.86 O&M Expenses 31.32 97.50 101.61 Total 305.07 919.24 927.46
(Rs. in lakh)
Asset-IV Particulars 2007-08 2008-09 Depreciation 89.25 102.60 Interest on Loan 161.14 195.92 Return on Equity 112.56 135.58 Advance against Depreciation 0.00 0.00 Interest on Working Capital 14.88 17.43 O&M Expenses 126.90 131.99 Total 504.74 583.52
(Rs. in lakh)
Asset-V Particulars 2007-08 2008-09 Depreciation 318.37 446.37 Interest on Loan 718.56 1004.80 Return on Equity 495.56 692.17 Advance against Depreciation 0.00 0.00 Interest on Working Capital 49.81 70.82 O&M Expenses 99.58 138.31 Total 1681.88 2352.46
(Rs. in lakh)
Asset-VI Particulars 2007-08 2008-09 Depreciation 103.11 188.35 Interest on Loan 229.27 414.08 Return on Equity 155.79 281.05 Advance against Depreciation 0.00 0.00 Interest on Working Capital 17.23 31.60 O&M Expenses 77.45 138.31 Total 582.86 1053.39
(Rs. in lakh)
Asset-VII Particulars 2007-08 2008-09 Depreciation 57.28 244.57 Interest on Loan 100.70 470.09 Return on Equity 72.71 312.70 Advance against Depreciation 0.00 0.00 Interest on Working Capital 9.27 40.81 O&M Expenses 73.50 305.83 Total 313.46 1374.01
(Rs. in lakh)
Asset-VIII Particulars 2007-08 2008-09 Depreciation 6.79 43.33 Interest on Loan 11.19 75.90 Return on Equity 7.92 50.55 Advance against Depreciation 0.00 0.00 Interest on Working Capital 1.43 9.24 O&M Expenses 21.09 131.60 Total 48.42 310.63
5. Except for the above, all other terms contained in the order dated 27.1.2021 in Petition No. 395/TT/2019 remain unchanged.
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